Unit price

20122013

About changing funds, please excuse my non- technical terms..

If I have 20 different funds on a platform and asked the platform to change (sell) these 10 funds and 'buy' '1 new fund'.. what would this process be called:

1. re-registration

2. selling and buying 

3. switched

4. or something else?

And will I get just one unit price for this '1 new fund'? as I had though they will be buying this new fund as each unit had been 'sold/ switched' but it seems I got 1 unit price.  

eskbanker

To me that process is simply selling and buying, although I believe that in some circumstances it may be possible to handle it as a switch, depending on platform, fund managers, etc, involved.

The fact that you've sold previously has no impact on the unit price of your purchase(s), so any buy that you make will involve a single unit price for that new fund, i.e. if you sell n units of the old fund and receive £x, you're buying £x worth of the new fund regardless of what its unit price is, not the same n units of it.

dunstonh

If I have 20 different funds on a platform and asked the platform to change (sell) these 10 funds and 'buy' '1 new fund'.. what would this process be called:

If its a joined up transaction, its a fund switch.  If its not joined up, then its a sell and buy.

And will I get just one unit price for this '1 new fund'?

Possibly. Possibly not.  it would depend on the settlement period of each of the funds being sold and whether the platform supports pre-funding or not (most DIY platforms do not).

T+2 is the most common settlement period.   So, if all the funds were T+2, then the funds for the purchase will be available at the same time.

20122013

dunstonh said:

If I have 20 different funds on a platform and asked the platform to change (sell) these 10 funds and 'buy' '1 new fund'.. what would this process be called:

If its a joined up transaction, its a fund switch.  If its not joined up, then its a sell and buy.

Would you mind explaining in simplier terms for me ? 

As I think what I did was selling down all the funds and then buying one new fund.

And will I get just one unit price for this '1 new fund'?

Possibly. Possibly not.  it would depend on the settlement period of each of the funds being sold and whether the platform supports pre-funding or not (most DIY platforms do not).

T+2 is the most common settlement period.   So, if all the funds were T+2, then the funds for the purchase will be available at the same time.

Would you mind explaining in simplier terms for me about, please ?

As I had 20  funds and was told by the provider which is not a DIY platform that instead of 'selling and buying'  or 'switching' one fund at a time, it will be more straight forward to do it in one transaction. .  

The way I understand is that as the 20 funds I had, they all have one price point / day, albeit at different times.

I would like to know when will the new fund be purchased? ie will my provider wait for all 20 funds be sold then purchase the new fund (so I will have one unit price )? or as soon as each fund was sold then purchase the new fund? (ie more than one unit price depending on what date they were bought)?  

20122013

I am still do not understand the unit price / valuation and I am having another attempt in reviewing my statements n and not sure what pending trades means and  Aegon had referred me to their website.

I would like to understand the process of 'selling and buying' or 'switching' funds and at what stage does pendng trades come into play. 

For example:

I am selling all 20 funds in my portfolio and buying 1 new fund under one reference number/ transaction. 

As I understand each fund only has one unit price / day.

So when all 20 funds have been sold and turns into CASH then this CASH will be used to buy this 'one' fund?

At what stage does this process become a 'Pending trade' ? 

is it before or after the 20 funds got sold ?

I am asking is because the valuation of the funds had changed, ie two statements showing two different amount.

ie On the day before the switch the Pending funds was X amount. But the amount used to buying this 'one' fund is no longer X, why has the amount has changed? as it is now in CASH and not funds so there is no unit price / market influence? As such I thought that both amounts would have been the same ?

dunstonh

Would you mind explaining in simplier terms for me ? 
As I think what I did was selling down all the funds and then buying one new fund.

A switch is where the sell and the buy are joined up in a single process and not two independent ones.

i.e. if you key in the sales of the units and select the alternative units in the same process then that would be a switch.

If you sell the units in one process and then buy alternative units in a different process then that is a sale and buy.

As I had 20  funds and was told by the provider which is not a DIY platform that instead of 'selling and buying'  or 'switching' one fund at a time, it will be more straight forward to do it in one transaction. . Which Aegon product or platform is it?   Aegon have several products that do not have a cash account and you cannot sell or buy without withdrawing money or adding money.  So, switch would be the only option available.

It has nothing to do with it being DIY but type of product.

20122013

dunstonh said:

Which Aegon product or platform is it?   Aegon have several products that do not have a cash account and you cannot sell or buy without withdrawing money or adding money.  So, switch would be the only option available

It is the Ageon Cofunds.  

I am trying to understand how the valuation for pending trades work?

My portfolio before the switch has 21 funds and cash which is made up of:

- 20 funds 

- 1 suspended fund ( the unit price is unchanged)

- Cash amount (would this amount still change, if I do not transact and my direct debit covers  the platform fee) 

I want to check my understanding on:

1. Each business day there is one set time for pricing the unit price for each fund

2. There is a cut off time / business day for Aegon to process my switch request

3. I have requested to switch all (20) funds out and  to switch in (1) fund

4. This is the part I would like some clarifications, will all the 20 funds be 'sold' on the next available unit price? the reason I ask is that when I log on to Aegon, over the duration of the switch, some fund are no longer showing in my account and some had remained.

The next 2 days, the pending trades 'valuation' is the same. Is this because it is all in 'cash'?  and waiting to purchase the 1 fund? so there is no fluctuation with the unit price?

5. But when it comes to buying the 1 fund, the 'valuation' to use to by the 1 fund is 2,348.55 less than 

As I have two valuations figures on 1 April 2025 and would have made a difference on number of unit purchased.  I am aware some replies had suggested to look at the settlement sheet, and would like to have a better understanding of how the process work.