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VALUATION WHEN LSE closed whilst other markets are open
mc2
Posted: 07 May 2018 09:53:02(UTC)
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Could anyone explains how valuation is applied to ITs and Funds on this occasions?.... Looked around but never seen this explained anywhere

So today is bank holiday in Uk and LSE is closed... However the other GLOBAL markets are open - and so funds and ITs investing in some of their components are still working ON A BANK HOLIDAY as on any other day.... So how and when the valuations of these active components are applied?... Assuming the Funds daily valuation is at 11:00 and today is bank holiday, when we get the next valuation tomorrow Tuesday at 11:00 it will include the funds changes happened on the bank holiday on the open global markets?... oR THE VALUTION HAD BEEN CHANGED before we get at 11:00?... In other words what happens to valuations and when in these cases?... Sorry if it sounds confusing but hopefully it will explain my puzzlement
JohnW
Posted: 07 May 2018 10:01:58(UTC)
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One imagines that it's the difference between when they closed, Friday, and when they open, Tuesday. Lets face it, we cant buy or sell when the stockmarket and platforms are closed so any change on Monday is irrelevant. So the situation is pretty much as happens at night, when the London stock exchange is closed but others in other parts of the world are still open.
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mc2 on 07/05/2018(UTC)
mc2
Posted: 07 May 2018 10:19:08(UTC)
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Hi JohnW... Thaks for your reply.... Yes, I know we investors cannot buy or sell in a fund on LSE when LSE is closed... But I am not talking about us investors, but the fund managements... I am talking about the fund managers buying and selling on the open markets whilst LSE is closed... . if for example if the manager of my Fund buys or sells APPLE this morning today on Nasdaq, when the effect on the valuation is going to be registered, today or tomorrow at 11:00?... I am talking about how and when managers apply their valuations... If the Manager buys apple on Nasdaq this morning and a hour later apple shoots up or down 30%, for the sake of example, preciselyWHEN this is reflected in my fund or IT?
Apostate
Posted: 07 May 2018 10:29:36(UTC)
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[quote=mc2;61848]Hi JohnW... Thaks for your reply.... Yes, I know we investors cannot buy or sell in a fund on LSE when LSE is closed... But I am not talking about us investors, but the fund managements... I am talking about the fund managers buying and selling on the open markets whilst LSE is closed... . if for example if the manager of my Fund buys or sells APPLE this morning today on Nasdaq, when the effect on the valuation is going to be registered, today or tomorrow at 11:00?... I am talking about how and when managers apply their valuations... If the Manager buys apple on Nasdaq this morning and a hour later apple shoots up or down 30%, for the sake of example, precisely WHEN this is reflected in my fund or IT?[/quote]

Presumably the UK fund manager can buy Apple later today in New York. The value of Apple in the UK based fund valued at 1100 tomorrow will be Apple's price at NY closing.
markus
Posted: 07 May 2018 19:45:13(UTC)
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mc2;61846 wrote:
Could anyone explains how valuation is applied to ITs and Funds on this occasions?.... Looked around but never seen this explained anywhere

So today is bank holiday in Uk and LSE is closed... However the other GLOBAL markets are open - and so funds and ITs investing in some of their components are still working ON A BANK HOLIDAY as on any other day.... So how and when the valuations of these active components are applied?... Assuming the Funds daily valuation is at 11:00 and today is bank holiday, when we get the next valuation tomorrow Tuesday at 11:00 it will include the funds changes happened on the bank holiday on the open global markets?... oR THE VALUTION HAD BEEN CHANGED before we get at 11:00?... In other words what happens to valuations and when in these cases?... Sorry if it sounds confusing but hopefully it will explain my puzzlement


struggling to see what the concern is here.

If a fund values itself at 1100hrs....then on a Friday the USA will be open for several hours after LSE is closed ...and the fund won't address any movement till Monday 1100hrs...see no different in the case of a bank holiday - any increases/decreases are factored in at the next valuation point.

For an IT it won't be officially recognised until the next NAV calculation - which could be daily or weekly..the share price may or may not reflect this when it starts trading
mark spurrier
Posted: 12 May 2018 13:30:50(UTC)
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IT and UT/OIECS NAVs are calculated daily

ITs usually calculate at the close of play. The others at some time during the market day.

NAV isn't so relevant for ITs on a day/day basis as it only indicates the calculation point for the discount/premium calculation - for the others NAV=Price

Trades the managment company have made will be reflected in the next NAV calculation

You can usually buy and sell ITs when the market isn't open 0700-2000 but the prices will be crap
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