Apparent large loss after buying index linked gilt

Hoenir

leosayer said:

Investment platforms need to play catchup given this demand and whilst I have seen some move from telephone-only dealing to online, clearly more needs to be done regarding valuation.

For TR26 over the past year the average number of monthly trades is only around 250 in total (12 a day).  Demand doesn't appear to be that great from retail investors. The cost of providing the services may not be economical as yet. Given that once purchased it's going to a long term hold. 

michaels

leosayer said:

Private investors are buying far more gilts than they have done historically, seemingly due to increased yields in recent yields.

Investment platforms need to play catchup given this demand and whilst I have seen some move from telephone-only dealing to online, clearly more needs to be done regarding valuation.

This isn't a problem for institutional investors who will have their own trading and valuation platform such as Bloomberg which won't have these problems.

Which platforms let you trade linkers online? Thanks

leosayer

michaels said:

leosayer said:

Private investors are buying far more gilts than they have done historically, seemingly due to increased yields in recent yields.

Investment platforms need to play catchup given this demand and whilst I have seen some move from telephone-only dealing to online, clearly more needs to be done regarding valuation.

This isn't a problem for institutional investors who will have their own trading and valuation platform such as Bloomberg which won't have these problems.

Which platforms let you trade linkers online? Thanks

I should have made it clear that I wasn't referring specifically to linkers in my post. I don't know the answer to that.

I bought conventional Gilts online via AJ Bell.

daveshep26

leosayer said:

michaels said:

leosayer said:

Private investors are buying far more gilts than they have done historically, seemingly due to increased yields in recent yields.

Investment platforms need to play catchup given this demand and whilst I have seen some move from telephone-only dealing to online, clearly more needs to be done regarding valuation.

This isn't a problem for institutional investors who will have their own trading and valuation platform such as Bloomberg which won't have these problems.

Which platforms let you trade linkers online? Thanks

I should have made it clear that I wasn't referring specifically to linkers in my post. I don't know the answer to that.

I bought conventional Gilts online via AJ Bell.

You can get both nominal and IL gilts on AJ Bell a- have bought either in last 2 months, believe the latter is fairly new, probably introduced not more than 6 months ago

incus432

Which platforms let you trade linkers online? Thanks

IWeb and AJBell certainly do - very straightforward.

Iweb show the apparent loss and value using the clean price, 

Credit to AJBell who display the valuation correctly with the 'dirty' price

incus432

Meanwhile Fidelity still won't allow you to hold individual gilts (or CSH2).  This was their respoinse when I asked.

"Please note, however, that direct ownership of UK Gilts is not currently offered through our platform. While I have submitted feedback on this matter for review, we cannot guarantee if or when direct investment options will be offered.

The 'Multi Units Luxembourg Amundi Smart Overnight Return GBP Hedged' (CSH2) fund is currently available on our platform but can only be accessed through an advisor at present. A request was submitted to the relevant department on 30 April 2025 to make this asset available for personal investing customers and direct clients. 
Please note that before we onboard an asset to our platform, it must undergo our due diligence process, which involves evaluating several factors. We have sent a request for information to the third party, which they need to complete and return. As we are dependent on their response, consequently, we cannot provide a specific timeframe for when the ETF will be available to direct clients, nor can we guarantee that it will pass our checks."

Nimble and responsive they ain't

Albermarle

incus432 said:

Meanwhile Fidelity still won't allow you to hold individual gilts (or CSH2).  This was their respoinse when I asked.

"Please note, however, that direct ownership of UK Gilts is not currently offered through our platform. While I have submitted feedback on this matter for review, we cannot guarantee if or when direct investment options will be offered.

The 'Multi Units Luxembourg Amundi Smart Overnight Return GBP Hedged' (CSH2) fund is currently available on our platform but can only be accessed through an advisor at present. A request was submitted to the relevant department on 30 April 2025 to make this asset available for personal investing customers and direct clients. 
Please note that before we onboard an asset to our platform, it must undergo our due diligence process, which involves evaluating several factors. We have sent a request for information to the third party, which they need to complete and return. As we are dependent on their response, consequently, we cannot provide a specific timeframe for when the ETF will be available to direct clients, nor can we guarantee that it will pass our checks."

Nimble and responsive they ain't

I think it is more of a cultural thing.
Although Fidelity nowadays have a modern platform, they have been around in the UK for longer than a lot of the other similar providers. One of their main customer demographics/base was the middle class of the Home Counties, so maybe they have a natural conservatism in offering 'new' products, and their main traditional customer base are probably not that interested anyway.
Also maybe the US parent likes to tread very carefully with offshore ETFs etc.

Hoenir

incus432 said:

As we are dependent on their response, consequently, we cannot provide a specific timeframe for when the ETF will be available to direct clients, nor can we guarantee that it will pass our checks."

Nimble and responsive they ain't

Perhaps the ETF originators themselves consider it a low priority task. Customers like fads come and go. 

FIREDreamer

FIREDreamer said:

I bought some ILG in an ISA with comdirect (obviously a long time ago).

The portfolio on the screen never showed a large loss compared to its purchase price. So comdirect could cope with the correct valuation on them.

I will need to dig through my records to see what these were.

Found the details here. Both gilts have been redeemed and i haven’t bought any ILG since, not due to any particular aversion. These were all priced correctly on the comdirect portfolio.

incus432

SnowMan said:

The dirty price that you paid takes into account that you are not just buying £100 nominal of the TR26 but you are also buying the indexation (i.e. RPI increase) that has already taken place from when it was issued in July 2015 until now. This diagram shows this (based on yesterday's official closing price and assumed settlement today)

When the ILG matures on 22/3/2026 you will get back £154.68 per £100 nominal purchased adjusted for the change in RPI from now to 22nd March 2026 (lagged by 3 months), and you will get two interest payments (coupons) on 22/9/2025 and 22/3/2026. 

@snowman Can you clarify another point please? -  I am unclear about what portion of the proceeds is taxable. I know the coupon interest is but what about the previously accrued interest?