Possible serious problem with pension unit pricing

dipsomaniac

Yes but the SIPP uses widely published unit trust prices directly rather than more obscure PP prices which are derived from unit trust prices using a secret formula.

you are looking too much into this. if you are investing with a company you have to put your faith in them pricing the fund correctly. unless you are day trading there is no need to be looking at the price on a daily basis. this is a long term investment - your objectives don't change daily.

if the fund is incorrectly priced, anyone trading (and losing out) will be compensated. If you are on the other side the chances are you will keep your gains - you can't lose.

wombat42_2

dipsomaniac wrote: »

you are looking too much into this. if you are investing with a company you have to put your faith in them pricing the fund correctly. unless you are day trading there is no need to be looking at the price on a daily basis. this is a long term investment - your objectives don't change daily.

if the fund is incorrectly priced, anyone trading (and losing out) will be compensated. If you are on the other side the chances are you will keep your gains - you can't lose.

I keep a keen daily interest because, although it is long term investment, I can fund switch at any time and i have about 100 to choose from. Fund switches are free. Making the right fund choice can be critically important. Once or twice I have done a fund switch that turned out to be a bad move so the more research and info I have on any fund decreases any risk of a bad choice. To properly monitor fund performance depends on accurate fund pricing.

purch

If you are THAT worried that MI are 'ripping' you off with their fund pricing then it is probably time to move to a different provider...........and if you are THAT worried that unit trust providers are 'ripping' you off with the calculation of their AMC's then maybe you should get all your money and stick it under your mattress..........

dipsomaniac

if your switch is processed same day (tel, fax, internet) prior to fund being priced then you can predict price movements of us and far east funds (markets that are open when uk is closed) for 1 day only.

otherwise you can't predict which way the price is going to move so studying the prices daily is a waste of time.

wombat42_2

purch wrote: »

If you are THAT worried that MI are 'ripping' you off with their fund pricing then it is probably time to move to a different provider...........and if you are THAT worried that unit trust providers are 'ripping' you off with the calculation of their AMC's then maybe you should get all your money and stick it under your mattress..........

I am absolutely sure that MI are not systematically trying to rip me off. Regarding the AMC issue, if there is a problem it is an industry wide problem.

I am waiting for Protected rights to be able to be set up as SIPPs (October next year apparently) then i will shift all my MI PP to HL.

wombat42_2

dipsomaniac wrote: »

if your switch is processed same day (tel, fax, internet) prior to fund being priced then you can predict price movements of us and far east funds (markets that are open when uk is closed) for 1 day only.

otherwise you can't predict which way the price is going to move so studying the prices daily is a waste of time.

I need to monitor trends of individual funds over different periods of time to see how they are affected by different ecomomic events.

dipsomaniac

you are paying a fund manager to worry about economic events.

once you have built your balanced portfolio you should just be reviewing it on a less regular basis.

if you want to day trade there are other vehicles out there for doing that.

wombat42_2

dipsomaniac wrote: »

you are paying a fund manager to worry about economic events.

once you have built your balanced portfolio you should just be reviewing it on a less regular basis.

if you want to day trade there are other vehicles out there for doing that.

I am free to fund switch any number of times. It may be that a fund choice is just right and I may stick with it for years or it may be that finding the right fund choice if problematic. It just depends.

wombat42_2

There is evidence of a complete lack or monitoring of unit prices at Merchant Investors. About a year ago I unintentionally switched to a Merchant Investors fund that I later found out ceased to exist about two weeks before the switch (it was merged with another fund of a different name and characteristics) yet unit prices for the original fund were still being given and updated on the Merchant Investors website. When i complained to Merchant Investors about this they said they knew about the fund but the information wasnt passed on to the relevant departments. They then checked and found a number of other obsolete funds that they provided fund prices for.

On the MI website you get daily pension fund prices. See:
http://www.merchant-investors.co.uk/daily/prices_series7.aspx

But the prices of one fund (JPMorgan Natural Resources) have not changed on that page for about 10 days even though the underlying unit trust is very volatile. The page clearly says "fund unit prices as at (todays data)". So it is misleading not to update some fund prices as it is a misrepresentation.

dunstonh

There is evidence of a complete lack or monitoring of unit prices at Merchant Investors.

Have you proof of that accusation?

But the prices of one fund (JPMorgan Natural Resources) have not changed on that page for about 10 days even though the underlying unit trust is very volatile. The page clearly says "fund unit prices as at (todays data)". So it is misleading not to update some fund prices as it is a misrepresentation.

The unit price on the website shows 120.7 which is the correct fund price for cloes on Friday