Managed Funds Time Lag?

Discussion in 'Shares & Funds' started by Dunsborough, 2nd Apr, 2007.

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  1. Dunsborough

    Dunsborough Member

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    Bunbury WA
    I am wondering can someone tell me when falls on markets affect managed fund buy prices, whether they be Asx or international or both.

    I know for instance if telstra announces a shock announcement their share price drops in seconds, and you can benefit straight away.

    When do market variations filter through to a managed fund?
    I know most of gurus on here will know, but so far i am a IP investor yet to venture into some diversity.

    I suspect i need to cost average and buy over a period of time but would like to hope could catch a couple of variations along the way

    All thoughts appreciated
     
    Dunsborough, 2nd Apr, 2007
    #1
  2. Simon Hampel

    Simon Hampel Founder Staff Member

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    Although it varies by fund (they should be able to tell you how the calculation works), in general for a fund that only invests in Australian shares, the unit price is calculated daily based on the closing share prices for that day.

    This updated unit price is published the following day - usually in the afternoon (the actual time depends on the fund).

    So, today I am getting updated unit prices that reflect what happened to the funds on Friday.

    For international funds it gets a little more complicated because of timezone differences - there may actually be 2 days delay ... you'd need to check with the individual fund to work out timings.

    Of course if you rely on the data provided by your margin lender, you may well find that it is up to a week old :eek: ... I suggest you go directly to the fund manager for up-to-date unit prices, or find a data source that updates daily.
     
    Simon Hampel, 2nd Apr, 2007
    #2
  3. Dunsborough

    Dunsborough Member

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    Thanks Sim, you are a legend

    Peter (dunsborough)
     
    Dunsborough, 2nd Apr, 2007
    #3
  4. voigtstr

    voigtstr Well-Known Member

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    Similar question I hope, If I wanted to purchase into Navra funds when they have dropped by the distribution amount, how many days into the new quarter is it best to place the order? (so the focus in this question would be on capital gain via the unit price change over time)
     
    voigtstr, 2nd Apr, 2007
    #4
  5. Simon Hampel

    Simon Hampel Founder Staff Member

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    Actually - to get the most benefit, you would (in theory) want your order to be processed on day one of the quarter (which was today). This assumes the unit price continues to go up (which it won't today after the market dropped 1.3% !).

    Distributions are calculated based on unit holdings on the last day of the previous quarter.

    You'd want to discuss with NavraInvest about when they need to receive your application for it to be processed on a particular day.
     
    Simon Hampel, 2nd Apr, 2007
    #5
  6. Glebe

    Glebe Well-Known Member

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    I'm re-investing my distribution so today's fall probably couldn't have been better timed :)

    Edit: Wait a minute, I'd better see what happens tomorrow!
     
    Glebe, 2nd Apr, 2007
    #6
  7. bundy1964

    bundy1964 Well-Known Member

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    Been a nice day so far:D
     
    bundy1964, 3rd Apr, 2007
    #7