Chase De Vere/Co Funds

sabelu

So my mother had a visit from her CDV FA and he advised one fund needed to change as her income would go down he also looked at the rest of her portfolio an said it might be good to look at her other holdings and take some profit from the better ones to invest in two new funds. Her needs are that the value must be stable but she needs income from investments. So all was well or so we thought.
However, at the end of the meeting the advisor said why dont you transfer all these to Co Funds to ease the administration burden and get one statement. From an admin sense my mum tought a good idea. When she got confirmation from Co Funds it seems they had to sell all her investments some of which she had bought at 27p per unit and re bought at 37p per unit. Therefore not losong value but units hence potentially meaning a drop in income as income is paid based on unit holding. This was not explained to her, the empahsis of this was on the admin ease..... no one explained this would happen potentially reducing her income? Her equity growth is important but the income the biggest factor.

Any advice?

Reaper

sabelu wrote: »

When she got confirmation from Co Funds it seems they had to sell all her investments some of which she had bought at 27p per unit and re bought at 37p per unit.

The price she originally bought them for does not matter. If they sold them on one platform for 37p and re-bought them on the other at the same price the number of units will be the same.

You can check the number of units she ended up with.

sabelu

she lost 22% of units they were bought ten years ago at 27p sold then bought back at 37p

dunstonh

Assuming transfer was used instead of re-registration, which it sounds, the old provider would have sold the investments, converted it to cash and sent Cofunds a cheque. Cofunds would then purchase the units requested.

She was probably out of the market for 3-5 days. Any market changes in that period would see a gain/loss but if we ignore that period, the same number of units would be held as before.

Look at the sale price from the original provider and the buy price from Cofunds. That is your difference. Not the buy price from years ago.

mike88

The price paid 10 years ago is irrelevant. The price they were sold for and re -bought are the appropriate figures to assess the value of the loss, if any.