Newly bought fund shows a 1.39% loss straight away?

elwy

I placed a buy order last night for £1000 each of two Legal & General tracker funds. Now they are showing in my portfolio but one of them is immediately showing a loss of 1.39% (£13.90).


The fund is Legal & General International Index Trust
Class C - Accumulation (GBP) Core Tracker fund


Can anyone explain to me why this happened?

redbuzzard

If you bought it on HL, they are not always the quickest to update the prices on the valuation page. I have my portfolio set up in Trustnet and the prices often update a couple of hours after the lunchtime re-pricing, which should be the price you paid.

You may find that when it updates it shows as 0% change.

Have you checked the unit price paid?

steelbru

Is there a bid offer spread ( buying price is higher than selling price ) ?

lpgm

It's probably appearing valued at yesterday's price rather than the price you paid for it today.

elwy

Yes I am using HL.


The price I paid on the contract note was 95.69 and the price showing in my portfolio is 94.36, hence the 1.39% loss. So you think this will update to the price I paid?


I'm struggling to find up to date market data on the FTSE World ex UK index which it tracks.


Steelbru: I don't think there is any bid offer spread on funds.

_Super

elwy wrote: »

Yes I am using HL.

The price I paid on the contract note was 95.69 and the price showing in my portfolio is 94.36, hence the 1.39% loss. So you think this will update to the price I paid?


I'm struggling to find up to date market data on the FTSE World ex UK index which it tracks.

Steelbru: I don't think there is any bid offer spread on funds.

The fees + todays share drop of 0.26% brings to total loss to 0.97% and then the rest is probably made up by lasts nights loss % of 0.42%

redbuzzard

No good referring to index changes, you need to find the fund price.

Trustnet shows the price as 95.69p; HL shows 94.36p, which I suspect is yesterdays reval. That looks to account for the difference.

I have noticed this "loss" and sometimes a "gain" with HL myself. It has always transpired that I have paid the correct price for the date of the txn, although there was a recent occasion when a £38k sale went through a day late and cost me about £30!

elwy

_Super wrote: »

The fees + todays share drop of 0.26% brings to total loss to 0.97% and then the rest is probably made up by lasts nights loss % of 0.42%

Sorry, what fees?

masonic

elwy wrote: »

Yes I am using HL.


The price I paid on the contract note was 95.69 and the price showing in my portfolio is 94.36, hence the 1.39% loss. So you think this will update to the price I paid?

http://www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/l/legal-and-general-international-index-trust-c-accumulation
"Prices as at 27 March 2015"

It was a bit cheaper on Friday than the price you paid for it today. HL hasn't yet updated with today's price.

redbuzzard

Thanks Masonic, I had failed to spot that HL does actually give the valuation date!

I did mention this to HL once, and I think the reply was along the lines that as the revals happen at different times, they update them all at once overnight.

Trustnet seems to update piecemeal. With funds, one never knows what the strike price will be so if I get a bit anxious (as when liquidating a chunk of SIPP for the lump sum a week ago) I look at Trustnet, even though knowing makes no difference at all:)

elwy

You're right, it's now updated with the price I paid and showing 0% loss/gain.


Thanks for the explanation!