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  1. #1

    iWeb Trading Sell Price

    I'm a bit confused, I was looking to sell some Fundsmith this afternoon on iWeb. It states that the last closing price of yesterday is 354.23 so will I get this price? I only ask because on the Fundsmith factsheet they have updated the price this afternoon at 347.58 so which price would I get if I sell? If anybody knows that would be most helpful. Thanks.

  2. #2
    As I understand it, funds are "forward priced", so when you buy or sell you will not know the precise price until the deal is done.

  3. #3
    If you have not placed the deal to sell already then you will get neither price.

    Units trusts are priced forward so to get todays price (Fundsmith's valuation is at 12.00 noon), you would have had to place the deal by 11.00am today, which I think is iWeb's cut off time.

    If you place the deal now then you will get tomorrow's price. You are always buying or selling before you know the exact price.

  4. #4
    The latest price published is for the last valuation point that you could have got if you made an order to subscribe or redeem in enough time to be included in that share issue or redemption. By the time you can see the price, you've missed it .

    When you put an order in, IWeb will forward it to the fund manager who will add it to the list of people who want to join or leave the fund at the next valuation point ; as long as they get it with enough lead time to include you in the next daily subscription /redemption exercise, you will get the price they calculate as part of that exercise. If your order is too short a time before the next dealing point and misses the published cut-off, you'll get the one after that.

    You won't get the price already published because if we were allowed to get paid out for our interests in the fund or buy new shares in the fund based on what they used to be worth at the time of last publication, we could really screw over everyone else who was staying in the fund, by dealing on that old price instead of what the shares are actually worth by the time we actually join/leave.

  5. #5
    Neither. Funds are forward priced so if you place your order with iWeb before their cut off time you will get the price at the next valuation point which for Fundsmith should be noon tomorrow


 

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