Buying ILGs on iWeb

tigerspill

I have much of my ISA investments on iWeb.  I am planning on moving some of these investments into ILGs.
Has anyone any experience of buying ILGs with iWeb.  It seems that it can be done online.  But wondering if anyone has done this recently?  Are there any pitfalls?
Thanks

DRS1

I think you may find the deal doesn't get done straightaway and instead you have to place a negotiated deal or some such thing.  It then gets done a bit later but at a price you haven't seen in advance.  I am not saying the price will be a rip off but it feels uncomfortable not seeing the price before you press buy.

tigerspill

DRS1 said:

I think you may find the deal doesn't get done straightaway and instead you have to place a negotiated deal or some such thing.  It then gets done a bit later but at a price you haven't seen in advance.  I am not saying the price will be a rip off but it feels uncomfortable not seeing the price before you press buy.

I think I might start with a single ILG and see what happens to test the waters.

kempiejon

A couple of years ago I held ILGs with iWeb now Scottish Widows and the way they displayed the clean price for the valuation but dirty price for your costs shows an immediate large loss. It was annoying. I don't currently hold and ILGs so perhaps since becoming SW they fixed that though I doubt it.

DRS1

kempiejon said:

A couple of years ago I held ILGs with iWeb now Scottish Widows and the way they displayed the clean price for the valuation but dirty price for your costs shows an immediate large loss. It was annoying. I don't currently hold and ILGs so perhaps since becoming SW they fixed that though I doubt it.

They aren't the only ones who do that.  HL also do it and there was a whole thread about ii and the valuation of ILGs for the purposes of the TFLS.

MK62

Bear in mind that you buy in 100ths of a gilt, so to buy say 73 gilts you'd enter 7300 as the quantity, rather than 73.
Also you can buy fractions of a gilt too (in 1/100ths), so eg for 73.68 gilts, you'd enter 7368.
This can be confusing, as you won't see the price/cost details of the negotiated order before you press "confirm"........just the number of gilts you are buying......

DRS1

MK62 said:

Bear in mind that you buy in 100ths of a gilt, so to buy say 73 gilts you'd enter 7300 as the quantity, rather than 73.
Also you can buy fractions of a gilt too (in 1/100ths), so eg for 73.68 gilts, you'd enter 7368.
This can be confusing, as you won't see the price/cost details of the negotiated order before you press "confirm"........just the number of gilts you are buying......

Personally I'd get nervous about specifying a number of gilts to buy I much prefer specifying how much I want to spend on buying them.

MK62

DRS1 said:

MK62 said:

Bear in mind that you buy in 100ths of a gilt, so to buy say 73 gilts you'd enter 7300 as the quantity, rather than 73.
Also you can buy fractions of a gilt too (in 1/100ths), so eg for 73.68 gilts, you'd enter 7368.
This can be confusing, as you won't see the price/cost details of the negotiated order before you press "confirm"........just the number of gilts you are buying......

Personally I'd get nervous about specifying a number of gilts to buy I much prefer specifying how much I want to spend on buying them.

Fair enough, but if implementing a gilt ladder, it will likely rely on a specific number of each gilt........though it most likely wouldn't make a big difference.....either way!

ali_bear

It must be possible to get the dirty price of each instrument from somewhere online?

But the point of the ladder is to get predictable future income based on the face value and coupon.

GenX0212

ali_bear said:

It must be possible to get the dirty price of each instrument from somewhere online?

But the point of the ladder is to get predictable future income based on the face value and coupon.

Try here: https://www.dividenddata.co.uk/index-linked-gilts-prices-yields.py

tigerspill

Well, I have just purchased my first ILGs.
I had £4,700 remaining in this year's ISA allowance so transferred this in to my iWeb ISA account and bought TR31 to this value.

This is what it says (below) -  Not unexpected given some of the comments, but at least I was able to start the process easily online.  So far, so good.
It gave me an estimated price range - this was the clean price.  No mention of the inflation adjusted dirty price.
Let's see how it goes and how long it takes.

Negotiated Order

Your order can not be completed automatically

Your order cannot be completed automatically at this time, but can still be submitted as a negotiated order.

Reasons for this could include market volatility, the size of your order, or because there is not enough electronic stock

available to match your order.

Because your order cannot be completed automatically we cannot guarantee the share price at the time of

your trade.

Your order will be sent directly to our Dealers who will negotiate the best price available for your order in the market at

that time. All orders will be completed in fair and due turn as soon as is practically possible.

Once you have placed a negotiated order you do not have the facility to cancel this instruction online.