Investing in North American fund - when is it valued

neildt

I have invested in the fund BAILLIE GIFFORD AMERICAN CLASS B - ACCUMULATION (GBP) through HL, take for example one of the stocks Amazon.com.

When will this fund value be updated? Because the fund value updated say 5:30pm but the US stock market was still open ??

londoninvestor

It varies between funds, but in the case of this fund, you can see from the HL "factsheet" page that the valuation is as of 10:00 UK time. It will then take some time (perhaps a few hours) for the fund manager to calculate a NAV based on the prices at that time and publish it. So what was published at 5.30pm would reflect prices as they were at 10am.

I don't know the ins and outs of how fund managers do it, but of course if it's at a time when the market is open, it is straightforward to get a price straight from the exchange. If not - as in the case of your fund here - I assume they must infer the valuation based on the last closing price, plus moves in the futures market.

Aside: That does seem like it would more trouble than picking a time at which the relevant market would be open - yet it's very common for UK-based funds to price at 12 noon even if they invest in US and/or Asian stocks. Maybe it's just overall easier for the manager to value all their funds at the same time - and of course, multi-country funds may not be able to pick a time when all their markets are open. I'd be really curious in the pros and cons of different valuation times for the manager!