Hargreaves&Lansdown

Any

I have an account with H&L, S&S ISA. I have regular monthly dd set up, rather then buying with one off large amount.

What I noticed is that they take the money out of my bank account, then they put it into my S&S account and then it sits there for at least couple of days before they "buy" the units in my chosen fund.

Why is that? When I buy funds in my Nationwide (L&G) investment fund, they take overnight.

And can I still change my fund selection in those couple of days? Because you have to set the selection for some time in advance, for them to collect the monies by dd, and as I am currently creating a portfolio I might prefer to buy something else on my list if it had just gone down (as to always buy at the lowest level at the time and maximise long term returns).

Anyone knows?

dunstonh

Some providers will prefund a transaction knowing the funds are coming. Others will wait until funds are cleared before making the purchase. It can be the same on sales as well where some will prefund the sale whilst others will wait for settlement.

gadgetmind

I don't log in very often, but I have spotted new money not switch to being pending transactions for a day or so.

I haven't tried switching late in the day as I normally only change the percentages every few months as part of ongoing rebalancing.

As for pre-funding, HL will let me buy shares pretty much immediately after I add funds to my account, so I don't know why they don't trigger unit buying just as promptly afterwards, but funds don't trade until the next valuation point anyway.

westy22

The ISA FAQ page for HL http://www.hl.co.uk/investment-services/isa/frequently-asked-questions clearly states that DD will be taken on the 7th of the month (or the next day if the 7th is a non-trading day) and will be invested on the 10th (or the next day if a non-trading day). These dates apply to all HL monthly investors.

You can change your investment for the month up to 48 hours before the DD is taken.

Any

westy22 wrote: »

The ISA FAQ page for HL http://www.hl.co.uk/investment-services/isa/frequently-asked-questions clearly states that DD will be taken on the 7th of the month (or the next day if the 7th is a non-trading day) and will be invested on the 10th (or the next day if a non-trading day). These dates apply to all HL monthly investors.

You can change your investment for the month up to 48 hours before the DD is taken.

Thank you, I wondered why is that. I can see that is what they are doing, I wanted to know why.

Dunstoh's answer makes sense..

So you can change your investment up to 5 days before they invest in your fund... good to know. Not that it is much use for what I wanted it, but it might be good sometimes.

Any

gadgetmind wrote: »

As for pre-funding, HL will let me buy shares pretty much immediately after I add funds to my account, so I don't know why they don't trigger unit buying just as promptly afterwards, but funds don't trade until the next valuation point anyway.

Yes, my Nationwide's G&L investment account always lets me buy pretty much immediately. Next day valuation point is not the same as at least 5 days old info.. though in grand schemes of things with units the fluctuations are not as high I suppose as with shares (unless we are talking about something like Invesco UK small companies, which can go up and down % point from day to day recently.. and that is the one I am buying this month!!:()

dunstonh

Prefunding costs firms money. You tend to find its the big firms or the financially strong ones that do it. You wouldnt expect low cost providers to offer it as anything that costs money is typically reflected in the charges you pay.

Pre funding is a feature which different people will put a different value on. Some see it is a valuable feature. Some wont give two hoots. Many dont even know it is a feature that exists with some and not others. A drawdown case recently which had the funds adjusted saw the tax free cash arrive in the bank account of the person half an hour later (used chaps). Without prefunding, that would have been about a week to arrive.

C_Mababejive

I would be much happier dealing with HL than say the NW due to the discounts and other loyalty payments,the larger range of funds and the higher degree of independence. Obviously HL still make money but then who works or provides a service for nothing?

Any

C_Mababejive wrote: »

I would be much happier dealing with HL than say the NW due to the discounts and other loyalty payments,the larger range of funds and the higher degree of independence. Obviously HL still make money but then who works or provides a service for nothing?

Yes, I opened my NW (I bank with them too) before I decided to open an ISA and as you say the discounts are big and worth to have.
But I still keep my NW for the UK all companies tracker, as it has no initial fee and I can put in as little as spare £20 whenever I want.
Unfortunately I don't deal in thousands yet (as most HL funds require for one off buy), just tens and hundreds:-)

gadgetmind

Any wrote: »

Unfortunately I don't deal in thousands yet (as most HL funds require for one off buy), just tens and hundreds:-)

Many are £500 one-off and £50 for regular savings, some even lower. (Note that even some that say £50 min in the key features table allow lower contributions in reality!)

You can also vary the amount going into a regular saver and where it goes on a month-by-month basis.

Any

gadgetmind wrote: »

Many are £500 one-off and £50 for regular savings, some even lower. (Note that even some that say £50 min in the key features table allow lower contributions in reality!)

You can also vary the amount going into a regular saver and where it goes on a month-by-month basis.

Majority is £1000 for one off, at least the ones I wanted.

Yes, I know, how do you think I finance my HL fund? By monthly contributions!:D