Fund price goes up - my investment goes down

george278

I invested £1000 in Henderson European Special Situations fund, HL SIPP, yesterday, Sunday.
The deal was completed today. My £1000 is now worth £992.50, a fall of .75%, despite this fund price going up on the last two days of last week and today. How can this be so? There is no offer/did spread with this fund on HL.

jabbahut40

george278 wrote: »

I invested £1000 in Henderson European Special Situations fund, HL SIPP, yesterday, Sunday.
The deal was completed today. My £1000 is now worth £992.50, a fall of .75%, despite this fund price going up on the last two days of last week and today. How can this be so? There is no offer/did spread with this fund on HL.

Hmmm....Is the difference an initial fee or perhaps just a round number of units purchased with the difference held in cash under your account? Best you check with HL direct as their help desk is pretty good.

Jabba

Glen_Clark

george278 wrote: »

I invested £1000 in Henderson European Special Situations fund, HL SIPP, yesterday, Sunday.
The deal was completed today. My £1000 is now worth £992.50, a fall of .75%, despite this fund price going up on the last two days of last week and today. How can this be so? There is no offer/did spread with this fund on HL.

Since you only bough them today how do you expect to benefit from their rise last week?

grizzly1911

george278 wrote: »

I invested £1000 in Henderson European Special Situations fund, HL SIPP, yesterday, Sunday.
The deal was completed today. My £1000 is now worth £992.50, a fall of .75%, despite this fund price going up on the last two days of last week and today. How can this be so? There is no offer/did spread with this fund on HL.

Dilution levy or similar adjustment on purchase?

george278

I’ve checked the contact note and I paid 81.55p per unit. However, the last time this fund was at this price was 29 November 2013. Its price today is 80.94, a December high. Hence my loss. But why have I bought at this price when there is no initial charge on this fund with HL?

grey_gym_sock

you placed the order on sunday, so it will have been bought today (monday). (fund orders need to be placed with HL by 08:00 for dealing on the same day.)

HL's site is still showing a price of 80.94p - http://www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/new-funds/henderson-european-special-situations-accumulation - but note that it says "Prices as at 20 December 2013" - i.e. it's still showing last friday's price. this price is usually only updated on HL's site some time after midnight.

however, your contract note shows the correct price for today. HL are quicker about showing the correct price on contract notes.

you can see the same price of 81.55p on trustnet (if you look at the right share class) - http://www.trustnet.com/Factsheets/Factsheet.aspx?fundCode=GMFZ3 - and it says it's for 23 december.

george278

Thanks Grey Gym, that makes sense.

[Deleted User]

Hi,

what is the time on contract note, I think all deals are done at mid-day.

This from HL:

Funds are traded using a forward pricing system, what does this mean?

The vast majority of funds price daily (on working days), mostly at midday. The forward pricing system means that when you place a deal it will be traded at the next available valuation point, typically at midday on the next working day. This means that you will not know the exact price that you will buy or sell at when you place the deal.
To check when your funds value please see the valuation point on the key features tab of our fund factsheets.

george278

[Deleted User] wrote:

Hi,

what is the time on contract note, I think all deals are done at mid-day.

T

Contract note dated 8.00 today

Totton

With HL you need to check the fund price after midnight as that is when their site updates that day's price changes. Also note that not all funds are priced daily though most are.

Shaolin_Monkey

george278 wrote: »

I’ve checked the contact note and I paid 81.55p per unit. However, the last time this fund was at this price was 29 November 2013. Its price today is 80.94, a December high. Hence my loss. But why have I bought at this price when there is no initial charge on this fund with HL?

The last time it was 81.55p per unit was 23/12/13 (Monday). If you placed an order on Sunday it would be sent to the managers on Monday morning. It was dealt at that days price.

When the prices change over on their website (generally, at midnight due to a delay on their website), I suspect your p&l on this will go to £0.00. It was only showing a "loss" because it was until midnight still showing Fridays unit price (80.94p).

EDIT pretty much as already said, sorry.