Your pies can automatically reinvest the dividend income they receive. The 'Auto reinvest' option is enabled by default.
How and when are dividends reinvested?
When you receive dividend payments from your pie's holdings those funds will remain in the cash portion of your pie until they are reinvested.
Dividend reinvestment will occur in any of the following scenarios:
1. The amount of cash in your pie surpasses a certain amount called the 'threshold'. The threshold value is variable and depends on the number of slices in your pie.
Auto reinvest threshold = number of slices * 0.20 £/$/€
Example: You have a 10 slice pie and its auto reinvest threshold is £2 (10 * £0.20). You receive a dividend payment of £0.92 which is lower than the auto-reinvest threshold of the pie and won't be reinvested yet. Several days later you receive a second dividend payment of £1.64. Now the amount of free cash in your pie increases to £2.56 (£0.92 + £1.64) which is above the pie's threshold, and thus an investing event will be triggered.
2. During an AutoInvest event, all free cash sitting inside the pie will be swiped up and invested along with the freshly deposited funds.
Example: AutoInvest deposits new £200 to your pie and is about to invest them. However, if you have £1.72 in the cash storage of your pie, the total amount of £201.72 will be invested.
3. During a 'Manual Invest' event, all free cash sitting inside the pie will be swiped up and invested along with the freshly contributed funds.
Example: You decide to manually invest £200 in your pie. However, you have £1.72 in the cash storage of your pie. A total amount of £201.72 will be invested.
How reinvested funds get allocated?
Dividend reinvestments are treated as a standard investment event. This means, that in scenarios '1' and '2' described above, cash will be allocated according to the pie's targets. In scenario '3', the cash will be allocated according to the 'Fund distribution' mode you select - By targets / Self-balancing / Custom
How to turn off dividend reinvesting?
You can turn 'Auto reinvest' off from the dividend settings menu. To access it, tap on the cogwheel icon in the upper-right corner of the 'Dividends' section of your pie:
Note: While Auto reinvest is turned off dividend income will be added to your account's free funds (outside the pie).