alternatives to H-L for tracker funds

psychic_teabag

The cutoff time is different for different funds. But seems to be typically one hour before the pricing point (so 11am for funds dealing at noon). The keyfacts document has a table listing the cutoff times.

moneylover

psychic_teabag wrote: »

The cutoff time is different for different funds. But seems to be typically one hour before the pricing point (so 11am for funds dealing at noon). The keyfacts document has a table listing the cutoff times.

thats much better then than HL isnt it - where the cut off time is 8am for everything. That means that you might have a bit more control over the exit price if a UK fund or tracker as you would know what the stock market was doing, although only important when its volatile

psychic_teabag

Yeah, though I'm still disappointed : I care more about buying dips than selling. But cash in Fidelity seems to sit in a cash-park "fund", and buying means "switching" from the cash park to the fund. A switch seems to mean selling one day and buying the next day. So I actually seem to have to give 25h notice to buy - 1 hour notice to withdraw money from the cash park at noon, and then it actually buys my fund at its next pricing point :-( (Perhaps buying something with an afternoon cutoff could go the same day ?)

Other places seem to treat cash as instant-access, and can buy the same day.

But I might just be missing some detail, as usual.

moneylover

psychic_teabag wrote: »

Yeah, though I'm still disappointed : I care more about buying dips than selling. But cash in Fidelity seems to sit in a cash-park "fund", and buying means "switching" from the cash park to the fund. A switch seems to mean selling one day and buying the next day. So I actually seem to have to give 25h notice to buy - 1 hour notice to withdraw money from the cash park at noon, and then it actually buys my fund at its next pricing point :-( (Perhaps buying something with an afternoon cutoff could go the same day ?)

Other places seem to treat cash as instant-access, and can buy the same day.

But I might just be missing some detail, as usual.

Presumably this is where the money has got int the cashpark through selling the previous day? Doesnt this happen with all of the brokers - can anyone else comment? Someone further up the thread said Co-funds operated like this. Is H-L instant turn around for funds? If so that would be better? With the exclusion of trackers.

Presumably you would not be in this position with new money which would be instant access if you got it there before 11am?

psychic_teabag

No, I put the new money into the cash park and was going to invest it from there. Perhaps a mistake, but I just prefer to do things in a sequence of steps, and for me, getting the money into the account is one step, and buying a fund is a separate step. The cash park seems to be behaving like a pseudo-fund with a dealing time of noon.

If you were to switch directly between funds, I don't think the cash park is involved. You'd sell one the first day and the new fund would appear in your account by the end of the second day. Buying (or switching) from cash park, the money leaves the cash park one day, and the fund doesn't appear in your account until the end of the following day, priced at that days valuation. I haven't sold yet, but I assume the fund would be sold the same day and the cash would appear in the cash park at the end of the following day.

New money might be able to buy a fund immediately, but it took them quite a while to actually take the money from my bank account and put it into the cash park in the first place, so I'm not 100% confident that they'd be any faster with buying a fund. But first payment was presumably slowed down by account creation overheads, and second payment might have involved a weekend, so I can't be sure. Can't investigate that right now since I've now put whole ISA allowance in.

I know that with HL, the cash is just "there" and can be used to buy something same day. I think Best may be the same. For switching between two funds, HL's T&C say they'll sell one day and buy the next, but some people on here have said that if you're switching between funds from the same provider, it could be same day. I can't comment on that myself. I've generally always sold to cash and bought from cash, rather than switching directly between funds. Maybe I'll just have to change that habit for Fidelity.

Anyway, it's not very important to me - it's not as if I'm going to be moving money about very often. I'm just doing a bit of juggling in the very short term as I rearrange some of my holdings across platforms. I'll figure out the best way to play things soon enough.

This is all presumably related to what dunstonh was saying about pre-funding, which I assume is whether they'll use their own money temporarily when you make a request, vs waiting until your money has actually cleared in / moved between their accounts before spending it.

moneylover

psychic_teabag wrote: »

This is all presumably related to what dunstonh was saying about pre-funding, which I assume is whether they'll use their own money temporarily when you make a request, vs waiting until your money has actually cleared in / moved between their accounts before spending it.

Yes, I suppose it is, as you say not normally massively important and it would seem that probably the way most brokers operate. Its just nice to know what to expect before jumping in. It also means that its different from buying and selling shares where the money is available instantly, yet the broker wont actually have the money from the sale - I think it takes 3 days to settle.

And in 2013 I expect we will all be on the roundabout again working out whats what when new charges come in