Same Day Pricing for Funds

peter021072

I've always assumed that Internet orders for Investment Funds (Unit trusts & OEICS) had to be submitted to a broker before 8am to receive the next available price for that day (often at Midday).  I've just exchanged Emails with someone at Interactive Investor who seems to imply that Internet orders can be submitted much later to receive the price on that day.  He directed me to this explanation on the Interactive Investors website, which doesn't clarify things much.  

"Funds are priced once daily and when a client places an order to buy or sell, they will be provided with the last known price. Each fund has its own cut off point for the day: this is when we stop accepting orders and send all received instructions to the fund manager. These orders will receive that day’s price and any orders placed after this point will be sent to the fund manager at the next available cut off point"

I recall Hargreaves Lansdown used to accept telephone orders up to about 11am for same day pricing but insisted on Internet orders before 8am.  Have things changed?

MK62

I don't think anything has changed tbh.....afaik HL still operate that way.
Some funds may not get priced until eg 10pm, in which case the fund manager might accept orders much later in the day......but the platform itself would still need to allow that.

Albermarle

I think it varies quite a lot depending on the fund and the platform . No hard and fast rules .

MK62

PS.....many global funds might price at 9pm or 10pm as the major markets are all closed at that time....

GeoffTF

It is all very clear on Vanguard's own platform. See question 10 here:

https://www.vanguardinvestor.co.uk/articles/latest-thoughts/how-it-works/your-10-most-common-questions

I think the cut-off times for Vanguard mutual funds are the same for iWeb, but it is best to put the order in very early, or the previous evening if possible.

Thrugelmir

peter021072 said:

I've always assumed that Internet orders for Investment Funds (Unit trusts & OEICS) had to be submitted to a broker before 8am to receive the next available price for that day (often at Midday).

Units traded will form part of the calculation at the next pricing point. 

peter021072

I'm primarily talking about the majority of funds which are priced at 12 mid-day.

Has anyone ever obtained the same day price for an order placed between 8am and 11:55am with Interactive Investor?

InvesterJones

On the Fidelity platform they list the cut off times for each fund - for most of their own funds it's 11am for a midday pricing, but for funds from other providers there are a wide range of times going up to I think 7pm in some cases - these funds often don't price at midday on the same day for obvious reasons (it's always forward).

ChilliBob

There's a table on the II website, or rather list. Essentially different funds have different cut off points. I think the safe assumption:

* Get your investment in before 11am to get the price for that day

But, there are exceptions where you can go later - for example I think BG goes right up to 4pm (well, it would be different wouldn't it !)

ColdIron

Interactive Investor say at least one hour

• Order cut off times
• Funds are valued once a day. Each fund has specific cut off time for orders to be dealt at that day’s valuation. If you place your trade after the cut off time, it will be traded at the next day’s valuation.
• We require you to place your order at least one hour before the cut off time.
• Cut off times vary. If you wish to know the cut off time for a specific fund, you can contact us via secure message. If you wish to know the fund order cut off time to place an order that day, you should call us.

Notepad_Phil

peter021072 said:

I'm primarily talking about the majority of funds which are priced at 12 mid-day.

Has anyone ever obtained the same day price for an order placed between 8am and 11:55am with Interactive Investor?

I don't know about after 9am, but I have certainly put in orders before 9am (maybe a little bit later too) and where I've expected to get todays price cause of a midday pricing point then that's what I've always got. Whether this is for all funds with such a pricing point I can't say.