Halifax Share Dealing - fund investment disappeared?

Mavo

Hi All,

 

I’m dipping my feet in direct share dealing via the Halifax Share Dealing platform.  (Previously I’ve had a stockbroker do everything, but I wanted more control.)

 

So far I have invested in an ETF, ETC and an HSBC fund.  The ETF and ETC are both fine – I got confirmation emails when the trade went through, and the investments show up on my valuation page.

 

The fund, however, is a different matter.  I did not receive a confirmation email, even though on the platform I was told the trade was successful.  The money used has disappeared and the fund is not showing up in my valuation.

 

Where has it gone?  Have I balls-ed up somehow, or does a fund investment just take a while to go through?

 

I tried Halifax online support but was directed to the helpline.  Since I spent over 2 hours on hold yesterday for a completely different matter, I thought I’d try here instead.  I’m sure they’re snowed under due to Covid-19.

 

Regards,

Mavo

dunstonh

ETFs are like shares.  You get no FSCS protection and you get immediate dealing throughout the working day.    You don't say what the other fund is but it sounds like a Unit trust or OEIC (virtually the same thing).   These get FSCS protection and have a single dealing point during the day.   

Some platforms update overnight.  Some platforms are real time.  Some update in snap shots during the day.  So, funds may appear at different points.   Some platforms pre-fund and will show the fund very quickly.  Some platforms do not pre-fund and will wait until settlement before they appear.

Alexland

Yes when you place the trade instruction for a fund purchase the cash will disappear from your account balance but under the dealing menu you should see a pending order that will be submitted to the fund manager then the fund units will eventually get added into your account.

Mavo

Thanks dunstonh.  It was about lunchtime today that I invested in the fund – it was the “HSBC FTSE 100 Index C Accumulation”.  It sounds like I just need to be a bit more patient?

 

I can understand if the fund doesn’t necessarily show up in the same place as shares and ETFs – because the fund isn’t as easy to value in the same way?  Hopefully it will show up on my account somewhere though.

 

Incidentally, I must admit I wasn’t entirely sure what the difference is between the “HSBC FTSE 100 Index C Acc” and the “HSBC FTSE 100 Index Retail Acc” – both seem to have the same description.

 

If the fund has some FSCS cover, what are the advantages to buying a similar ETF instead (e.g. HSBC FTSE 100 ETF)?  Does it come down to tax or something?

Mavo

Aha!  Thanks Alexland, that’s where it is.  In Dealing > Pending Deals.  I hadn’t spotted that tab before.  The trade is shown as “Active” so presumably they’re waiting for confirmation from the fund manager.  When it does go through will it be at the price I agreed earlier on today, or will the price be adjusted for fluctuation since then?

eskbanker

Mavo said:

When it does go through will it be at the price I agreed earlier on today, or will the price be adjusted for fluctuation since then?

You didn't agree a price as such, but your purchase will be priced at tomorrow's valuation point (midday).

Alexland

Mavo said:

Incidentally, I must admit I wasn’t entirely sure what the difference is between the “HSBC FTSE 100 Index C Acc” and the “HSBC FTSE 100 Index Retail Acc” – both seem to have the same description.

If the fund has some FSCS cover, what are the advantages to buying a similar ETF instead (e.g. HSBC FTSE 100 ETF)?  Does it come down to tax or something?

If you look at the data sheets you will see the retail fund has a slightly higher management charge so you can see it has a performance lag which gets greater over the years. By chance you bought the cheaper one but next time don't just buy on the description.
ETFs are exchange traded like shares so you can see the price before trading and don't have to wait for the fund manager to price the units. Some platforms charge lower capped charges for exchange traded assets. But ETFs have no FSCS protection and can cost more to trade particularly if they are not big enough to have good liquidity.

Thrugelmir

FTSE fell today. The Gods were looking down on you. 

Mavo

Ok, thanks both. 

 

Why does the “Retail” version have higher management charges than the “C” version?  I’ve been having a look at them here:

https://www.trustnet.com/factsheets/o/m271/hsbc-ftse-100-index-ret-acc

 

In the “Unit Details” table, Share column, it says Yes for one and No for the other.  What does that refer to?

 

In the table below that it says minimum investment for the “C” ETF is £1m!?  I definitely didn’t invest that much!  Is that because Halifax is buying on my behalf?

 

Ha Thrugelmir, and I kind of hope all three of my investments keep going down so I can buy more!

Thrugelmir

Mavo said:

In the table below that it says minimum investment for the “C” ETF is £1m!?  I definitely didn’t invest that much!  Is that because Halifax is buying on my behalf?

 

Some funds are targeted at institutional investors. As for costs reflects the administration of  the underlying customer base. Level of activity etc. 

Your trade will probably just lapse and sit there unfulfilled. 

Alexland

My experience is that minimum investment levels are often not enforced and if a fund has been added to the platform then the fund manager will usually accept an order at any reasonable value.
It's fairly common for fund managers to have different funds or classes of the same product to address different customers. Petrol costs more at the motorway services because people are willing to pay more. Platforms often have duplicates because the expensive one was added first, people want to transfer in an existing investment without a capital gains tax disposal event, etc.