Do dividends get reinvested

[Daragh29]

Hi, just trying to get a better general understanding of pensions and one thing that I'm wondering about but cant find an answer on is. Do the dividends earned from pension funds get reinvested back into the pension fund? Thanks

 

[jpd]

There is no such thing as "dividends earned from pensions funds" - dividends are earned by pension funds

Dividends are paid to the holders of the shares - in this case they would be paid to the pension fund or rather to the pension fund trustees. Normally these dividends would then be reinvested by the fund managers in line with the investment strategy used by the pension fund and agreed by the trustees. This could include purchasing more shares in the company that paid the dividends but not necessarily.

 

[Daragh29]

There is no such thing as "dividends earned from pensions funds" - dividends are earned by pension funds

Dividends are paid to the holders of the shares - in this case they would be paid to the pension fund or rather to the pension fund trustees. Normally these dividends would then be reinvested by the fund managers in line with the investment strategy used by the pension fund and agreed by the trustees. This could include purchasing more shares in the company that paid the dividends but not necessarily.

Thank you. Appreciate the clear answer