The mechanics of selling an OEIC

bucklb

Hi

I'm hoping to sell an OEIC (in iWeb) and wondering what the mechanics of doing so online are. I've previously sold ITs and ETFs without issue, but they are priced "real time" whereas OEICs/Unit Trust pricing is rather more opaque.  

How long is it likely to take (from pressing the sell button) to have the proceeds of the sale ready for use, please?

Part of the reason for my hesitance is that it took a full week to get the proceeds of selling a bunch of ITs (held within Columbia Threadneedle) which took me aback.

Cheers

  Bob

masonic

If you sell before the cut-off time (usually a few hours before the fund's valuation time), then you'll sell at that day's valuation point. Funds would normally be available to reinvest the next day or to withdraw around 2 working days later. Otherwise the order will be executed on the next working day and everything will be 1 working day later.

ColdIron

IWeb's cut off time is 11:15. The valuation point is usually midday but could be later depending on the OEIC

A Contract Note will be available shortly after the trade and it will show the Settlement Date when you would expect the cash to be available for withdrawal. I'd plan on 3 or 4 working days all in, less to reinvest

• When will I be able to see my fund trade?

• Funds are traded differently to shares. Funds are normally priced once each day at a time called the valuation point. The price per unit for the fund will be set by the valuation of the assets. For most funds, if you place your order before 11.15 am, the trade will be priced at 12 noon. Any order placed after 11.15 am would not be priced until the following working day at 12 noon. The completed trade can take a couple of days to show within your account.

https://www.iweb-sharedealing.co.uk/help-and-guidance/existing-customer/trading-support.html

Edit: Plus as @DiamondLil says, the Bacs withdrawal time

DiamondLil

I'm with IWeb and once the sale proceeds are available to withdraw it takes another three days from withdrawal to reaching my bank account.

wmb194

bucklb said:

Part of the reason for my hesitance is that it took a full week to get the proceeds of selling a bunch of ITs (held within Columbia Threadneedle) which took me aback.

These days shares settle on a T+2 timescale so e.g., execute a sale on Monday and iWeb will have the cash on Wednesday. The problem is that iWeb uses Bacs for withdrawals so if you meet the withdrawal cut-off time on Wednesday it won't be in your linked current account until Friday, Monday if you miss the cut-off.

IIRC some OEICs are T+4 so I'd prepare for it to take a couple of days longer than selling your ITs.

GeoffTF

It has been T+2 for me on Vanguard's platform. I can then get the funds out immediately by Faster Payments. iWeb is slower because it uses BACS, as wmb194 has said.

masonic

The OP hasn't specified whether they need to withdraw or reinvest, but to avoid confusion, iWeb, like most other providers, allow funds to be reinvested before settlement. So time out of the market if reinvesting would be 1-2 days.

bucklb

thanks all.

Should have been clearer that I intend to reinvest (trying to consolidate some rather hodge-podge investments that have built up over a few decades)

mr_accountant

Some funds have earlier cut offs to receive today's price, an example is Vanguard lifestrategy range who cut off is 9am, so for example if you did a sell at 9.30 am on a Monday you would only get Tuesday's price which Vanguard would published late on Tuesday evening/ Wednesday morning

the funds are available to reinvest  around two days even if settlement takes around 4 days.

Albermarle

an example is Vanguard lifestrategy range who cut off is 9am, 

I am guessing that the 09.00 cut off is the one the Vanguard platform imposes ( not the VLS funds).?

If so then if you were holding the VLS funds on a different platform, the cut off time might be different. 

ColdIron

Vanguard Investor have a cut-off time of 09:00 for LifeStrategy, though it does vary by fund, so it would be different for different platforms. However it's Valuation Point is 21:00 which can add a day to the Settlement Date