Hargreaves Lansdown - Forward Pricing

JDinho

Do you notice the changes being made when you invest a set amount AND when you buy a specific number of units?

If it happens only when you invest a specific amount it is probably adjusting for the fractions/rounding amounts necessary to fulfill your order.

If you are buying a set number of units there should be no change.

Aegis

JDinho wrote: »

Do you notice the changes being made when you invest a set amount AND when you buy a specific number of units?

If it happens only when you invest a specific amount it is probably adjusting for the fractions/rounding amounts necessary to fulfill your order.

If you are buying a set number of units there should be no change.

I only ever invest a fixed amount of money. I have yet to buy a specified number of units of anything in terms of stockmarkets, so maybe that explains something about what I've seen...?

JDinho

I would suggest that is the reason, investing to the nearest pence will require some jiggery-pokery and HL are probably estimating the purchase whilst waiting for confirmation from the Fund Manager.

mroller

InMyDreams wrote: »

I didn't get an adjustment of the number of units, but something funny did happen when I opened my H&L ISA last week with £3k. I opened the account on the Monday morning (applied on line before 10am). When I checked the account on the Tuesday to see if all had gone through, the value of my chosen funds was up £7.89, with the prices showing as Monday's prices, but when Tuesday's prices came through on the system my funds were valued at exactly £3k as they should have been. In other words, I had indeed bought exactly £3k of funds at Tuesday's prices, even though for some reason they were showing up early. Could something like this have been causing the confusion?

I then added to the account (on line) just before midnight this Tuesday and the transaction went through with Wednesday's prices, but didn't show in my portfolio until Wednesday's prices were actually showing too.

Don't know if any of that helps.

this happens all the time to me as well.
the reason is that the trade is confirmed at tuesday's price even if these prices have not been published yet.

Chrismaths

It might be something to do with how the order is processed.

Hargreaves route orders through EMX - this gives you a same day price and feeds straight through to your backoffice system. This means that you will get confirmation on the same day.

However, not all providers of Unit trusts are signed up to EMX, so then you go back to steam age phone/fax to place orders, and have to wait for a paper contract note.

Hargreaves will still need to reconcile their bank account, so they need to represent that money that has been paid away, but they don't know the number of units in this case, so they'll probably use a historic price for a "ball-park", and an adjustment after. Not very elegant, but dealing unit trusts is a pain, and requires dirty workarounds.