Quick question

cs90

Hi everyone


I'm sure there is a very simple answer to this and I obviously do not fully understand what I am doing.


I bought £500 worth of Woodford Equity Fund. This has risen and fallen as expected. At current, I have a £16.06 profit and 3.21% increase on my £500. So I should be at £516.06. However it shows that I am at £515.71. The "cost" of owning the units I have is £499.65.


I spent £500 on the units, however it is saying the cost of the units is £499.65?


Am I being really silly here? I have only recently noticed the drop on the price of the units I hold. For the past few months the cost has always been at £500. Could this be from the charges of holding the fund?

TCA

How many units did you buy and at what price?

Did you have dealing costs?

Drp8713

Has it paid you out a dividend? That would reduce the amount it cost you.

principlecounts

TCA wrote: »

How many units did you buy and at what price?

Did you have dealing costs?

Second this. I got just as confused at first. Get the basic facts, if you're unsure contact the investment firm.

Totton

Is it anything to with equalisation? See http://www.hmrc.gov.uk/manuals/CGmanual/CG57705.htm

TheTracker

cs90 wrote: »

Hi everyone


I'm sure there is a very simple answer to this and I obviously do not fully understand what I am doing.


I bought £500 worth of Woodford Equity Fund. This has risen and fallen as expected. At current, I have a £16.06 profit and 3.21% increase on my £500. So I should be at £516.06. However it shows that I am at £515.71. The "cost" of owning the units I have is £499.65.


I spent £500 on the units, however it is saying the cost of the units is £499.65?


Am I being really silly here? I have only recently noticed the drop on the price of the units I hold. For the past few months the cost has always been at £500. Could this be from the charges of holding the fund?

The resident Woodford spokesperson on MSE should be able to advise. Ryan?

Kendall80

A few of my funds show these slight discrepancies. I've presumed its because you cant always put a circle in a square. In that £500 may not always be exactly divisible by the share proportions.

ColdIron

Kendall80 wrote: »

£500 may not always be exactly divisible by the share proportions.

OEICs are divisible to 4 decimal points in the pound and OP said the price was £500 for months. My money is on an equalisation payment as per Totton's suggestion particularly if with HL

jimjames

Has the HL management fee been taken?

cs90

Thanks for the replies everyone.


Could be any one of the suggestions given to be honest. I will need to look further into it. I am with Hargreaves Lansdown.


To date, I have only been charged 26p in charges. (Paid separately and not using the invested money)


£100 for 96.516 units at 103.61 unit cost
£100 for 97.867 units at 102.18 unit cost
£100 for 102.775 units at 97.30 unit cost
£100 for 93.023 units at 107.50 unit cost
£100 for 93.188 units at 107.31 unit cost


Total £500 for 483.369 units.


Yet, it says £499.65 for that amount of units.


I may well have been paid out a dividend by now but I am unsure on how to check this on HL. (Is there anywhere I can read up on dividends and why the unit price would go down after a pay-out?)


I'll also check to see if my money is on an equalisation payment as suggested.

Sorry for being so dim. I chucked some money into it without having a full understanding of what I was doing!

ColdIron

cs90 wrote: »

I'll also check to see if my money is on an equalisation payment as suggested

Go into your account and select the Transaction History tab then the Income and Loyalty Bonus tab, it should be in there