HL withdraw 90% of your funds?

GiveMeABreak

Has anyone else noticed that when you have money in a fund and you try to withdraw it, it says you can withdraw up to 90% of the value?

What's this about?

jimjames

Maybe there is a limit to the amount that can be left.

I've withdrawn the whole amount with no problems. Can you just change the number of units to the amount you want?

GiveMeABreak

jimjames wrote: »

Maybe there is a limit to the amount that can be left.

I've withdrawn the whole amount with no problems. Can you just change the number of units to the amount you want?

Yeh it lets me type the full amount in units but not only 90% as value. Strange... I hope they don't take 10% of course savings for withdrawing -_-

dunstonh

many platforms require you to specify percentage rather than amount when you are withdrawing over a certain percentage of the fund. Some have it at 80%, some 90%. They restrict it to choice of number of units or percent but remove the monetary amount option.

Its to prevent daily movements resulting in you placing a trade that exceeds your holding.

bowlhead99

If you have 100 units at 100p each at the last reported price it looks like you have £10000 worth of the fund. But the amount you could get by selling the fund is not known because the price you buy more at or sell out at, at the next dealing point, is only going to be found out once you've committed to redeem your holding and they've valued the fund.

The fund might get priced at 97p tomorrow which means the whole lot would only be worth £9700. So, they're happy for you to say you want to sell 100 units but not that you want to cash in £10,000.

If you said you wanted to cash in £9000, that would be fine because they probably assume the unit price will not be below 90p after only one day and they'll just sell whatever number of units they need, to get you your £9000.

*edit* hmm, I'm sure Dunstonh hadn't already replied an hour ago when I read this question... that'll teach me to open loads of tabs at once.