Same Day Pricing for Funds

Thrugelmir

DireEmblem said:

GeoffTF said:

coyrls said:

I have found with II that trade confirmations for Vanguard funds tend to take longer to come through but that when the confirmation does arrive, the actual trade has taken place on the expected day.

With Vanguard funds, on both Vanguard's own platform and iWeb, you do not get a contract note until late in the evening of the day after the trade was executed.

IIRC this is because Vanguard funds price around 9pm GMT.  I dont think they are actually 'valued' at this time, but more the very next day, so the price at which you achieve, although at 9pm GMT, will not be confirmed until around midday the next day, which is then released to the transfer agent to apply against all dealing, and then released to your platform provider to forward on to yourself.

Eastern US markets close for trading at 9 pm UK time. Asian markets are yet to open. 

GeoffTF

DireEmblem said:

GeoffTF said:

coyrls said:

I have found with II that trade confirmations for Vanguard funds tend to take longer to come through but that when the confirmation does arrive, the actual trade has taken place on the expected day.

With Vanguard funds, on both Vanguard's own platform and iWeb, you do not get a contract note until late in the evening of the day after the trade was executed.

IIRC this is because Vanguard funds price around 9pm GMT.  I dont think they are actually 'valued' at this time, but more the very next day, so the price at which you achieve, although at 9pm GMT, will not be confirmed until around midday the next day, which is then released to the transfer agent to apply against all dealing, and then released to your platform provider to forward on to yourself.

The price is on the Vanguard website and Morningstar early the next morning after the pricing point. I have not checked during the night. It is not immediately available after the pricing point, so there is some delay, but I do not know exactly how much. Nonetheless, I do not get a contract note until late in the evening on the day after the pricing point.

Notepad_Phil

peter021072 said:

Imagine the situation where you were selling a fund investing in Russian stocks for example.  You sense the possibility of a market crash or suspension in their stockmarket early in the week and send an order to sell at 23:30 on a Tuesday only to have it priced for Thursday. Of course this is an extreme example, but very sharp price movements can occur over a day or two, and irrespective of whether it makes a big difference, surely in principle the cut off times and pricing should be transparent? 

Fidelity seem to to be transparent here.  They list the minority of funds which don't have a cut off at 11am, and what the cut off time is. 

If cut off times are determined by the fund managers rather than brokers, perhaps these times are valid across all brokers?  According to Fidelity the latest cut off time seems to be 4pm (on normal days).

You may want to consider the use of Exchange Traded Funds and/or Investment Trusts if you are concerned about exact details of pricing times. With these, if you're doing an immediate buy or sell then most platforms will give you 10 seconds to accept/reject the price they are offering. There can of course be issues if you want to deal during times of market stress, but then nothing is ever 100% free of risk.