SIPP Transfer & Market Volatility

Forgive my ignorance, I already think I know the answer to this one but just want to double check...

With the recent market volatility at the moment, does it make a difference to me if I am in the middle of a SIPP transfer application from HL to Vanguard??

I think the answer is NO because even though my current investments with HL have dropped, when the transfer time comes I'd be selling at a loss but buying similar funds at a similarly low price so shouldn't make any/much difference to my long term returns? The only time that I might be affected is the short period between HL liquidating the funds, transfering the money and then Vanguard purchasing the funds?

Stupid question I know but I bet there are others who have thought the same thing as I?

Replies

  • Andrew31Andrew31 Forumite
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    Unless you sell at the bottom and it takes a week to transfer and in that week it all goes up 8%
  • mcooke999mcooke999 Forumite
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    Yes so the only time I'll miss out on is the time it takes to sell & buy again... and that could work against me or in my favour.
  • mcooke999mcooke999 Forumite
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    I wonder where other people are up to with their Vanguard SIPP transfer. Mine's still in progress. Not heard anything from HL yet either.
  • dunstonhdunstonh Forumite
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    If you did an in-specie transfer then you are not out of the market at all.  Its only if you did a cash transfer that you will be out of the market (approx 3-5 days typically)
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • mcooke999mcooke999 Forumite
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    Thanks. Unfortunately Vanguard only accept cash transfers at the moment, not sure if this will change.
  • Dead_keenDead_keen Forumite
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    I did a transfer out of Aviva to Vanguard on 19 February.  The units got sold on 21 February and the cash hasn't yet appeared in Vanguard.  So I may have been quite lucky with timing.  
  • macmanmacman Forumite
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    The climb back up is going to be a lot slower than the fall, so it's unlikely that you will be severely affected in the 2 or 3 days between the cash coming in from HL and Vanguard buying your stock. They already know in advance what you want to buy, so I'd imagine that the 'buy' procedure is simply a daily batch process.
    I'm in a similar position, and I've been very impressed with Vanguard's administration so far. Any delays are more likely to result from HL dragging their feet to release the funds, as I'd expect there to be a lot of one-way traffic resulting from the launch of the Vanguard SIPP.
    No free lunch, and no free laptop ;)
  • edited 29 February 2020 at 12:41AM
    MordkoMordko Forumite
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    edited 29 February 2020 at 12:41AM
    deleted deleted
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