Deal Cut off Times for Vanguard 60/40?

OldManLogan

Apologies if this is explained elsewhere but I just wanted to make sure I am understanding it correctly.
If I purchase Vanguards 60/40 through an S+S ISA and the deal cut off time is 9am (UK time), does that mean that I have to place the order by 8am that morning in order to get that day's price? And is the price updated around 11pm each night, so I have between approx 11pm and 8am to order at that price? If the order is place after 8am then it will be at the following day's price?

Thanks for your help.

Thrugelmir

Otherway round. You place a buy order during the day (before the daily cut-off) and your trade will undertaken at the struck price set in the evening. 
Has to be done this way. As your activity combined with all the other trades undertaken will have an influence on the daily price. For all intents and purposes your money will be held as cash within the fund at the point of valuation. The following day it will be invested in proportion to the underlying investments held by the fund. 

OldManLogan

Thrugelmir said:

Otherway round. You place a buy order during the day (before the daily cut-off) and your trade will undertaken at the struck price set in the evening. 
Has to be done this way. As your activity combined with all the other trades undertaken will have an influence on the daily price. For all intents and purposes your money will be held as cash within the fund at the point of valuation. The following day it will be invested in proportion to the underlying investments held by the fund. 

Thank you, so if it says the daily cut off is 9am do I still need to place the order by 8am to get the price that it changes to that evening? And if its placed after 8am you would only get the price set the following evening? 

Thrugelmir

Correct. That's a downside of investing funds in volatile market conditions. You are totally exposed to the whims of the market. Whether you are buying or selling. Hence why it's advisable to also hold actively managed investments in your portfolio to broaden diversification. No one strategy fits all market conditions. 

george4064

@OldManLogan, are you investing into the Vanguard fund via Vanguard's investment platform or another platform?

The reason I ask is because the deadline for an external platform (i.e. NOT Vanguard) will be earlier than if you were investing via the Vanguard platform.

OldManLogan

Thrugelmir said:

Correct. That's a downside of investing funds in volatile market conditions. You are totally exposed to the whims of the market. Whether you are buying or selling. Hence why it's advisable to also hold actively managed investments in your portfolio to broaden diversification. No one strategy fits all market conditions. 

Ah ok that makes sense, thank you for the explanation and your help

Albermarle

The reason I ask is because the deadline for an external platform (i.e. NOT Vanguard) will be earlier than if you were investing via the Vanguard platform.

I understood from previous threads that this was not necessarily that case and that in fact the Vanguard cut off was 09.00, whilst it was 10.00 on some other platforms. 

Anyway these types of funds are really for long term, hands off investing and one hour/one day is neither here nor there in the long run.

OldManLogan

george4064 said:

@OldManLogan, are you investing into the Vanguard fund via Vanguard's investment platform or another platform?

The reason I ask is because the deadline for an external platform (i.e. NOT Vanguard) will be earlier than if you were investing via the Vanguard platform.

It would be via the Vanguard platform, thank you for the info about different cut off times via different platforms though, good to know if I ever switch platforms

OldManLogan

Albermarle said:

The reason I ask is because the deadline for an external platform (i.e. NOT Vanguard) will be earlier than if you were investing via the Vanguard platform.

I understood from previous threads that this was not necessarily that case and that in fact the Vanguard cut off was 09.00, whilst it was 10.00 on some other platforms. 

Anyway these types of funds are really for long term, hands off investing and one hour/one day is neither here nor there in the long run.

Yes it would be passive investing, I just wanted to make sure I understood how the timings worked properly

AlwaysLearnin

OldManLogan said:

george4064 said:

@OldManLogan, are you investing into the Vanguard fund via Vanguard's investment platform or another platform?

The reason I ask is because the deadline for an external platform (i.e. NOT Vanguard) will be earlier than if you were investing via the Vanguard platform.

It would be via the Vanguard platform, thank you for the info about different cut off times via different platforms though, good to know if I ever switch platforms

I use the Vanguard platform and recent VLS purchase requests made before 9am have got that evenings price the next day. 

Might be a bit different when clocks change at the weekend

bowlhead99

Vanguard's platform's dealing deadline for VLS as shown on their website is 9am UK time on a dealing day (which is most business days). If you catch that deadline you will get that evening's price, but you won't see the price published (or a contract note generated with the exact price and number of units) until the accountants have done their work to value the fund, which can't happen until after the valuation point of 9pm UK time. So it would usually be the next day before you found out what you'd got.

Although Vanguard's own platform has a 9am deadline, the official 'cut-off point' on a valuation day is 10am UK time for the order to reach the fund manager. Some platforms will accept your order right up to the last minute, while others will demand that orders reach them some point a good bit earlier than 10am so that they are able to pass your subscription or redemption request along to Vanguard so they definitely get it by 10am. So feasibly some could be as late as 10am, but some could be earlier than 9am.