Personal Finance

Locked: Mutual fund value drops while waiting for transfer to chequing account

  • Last Updated:
  • Jul 25th, 2020 6:32 pm
[OP]
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Feb 12, 2019
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Mutual fund value drops while waiting for transfer to chequing account

I tried to transfer all fund from a CIBC mutual fund account to a chequing account.

It's been over 24 hours, money still not moved, the value of mutual fund dropped +$50, why should I lose $50 just because they couldn't move the money fast enough, the rate should be the day I choose to take the money out, not the rate when the day the money is actually being taken out. THIS IS BULLCRAP.

Is there a bank that has its shit together', and can do it faster than these suckers at CIBC?
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Deal Fanatic
Dec 5, 2006
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Markham
TheMeat wrote: I tried to transfer all fund from a CIBC mutual fund account to a chequing account.

It's been over 24 hours, money still not moved, the value of mutual fund dropped +$50, why should I lose $50 just because they couldn't move the money fast enough, the rate should be the day I choose to take the money out, not the rate when the day the money is actually being taken out. THIS IS BULLCRAP.

Is there a bank that has its shit together', and can do it faster than these suckers at CIBC?
Not sure cibc, but in TD, if you switch or sell after 3 pm, the price is decided by next day closing price

Which time did you sell mutual funds
[OP]
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Feb 12, 2019
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smartie wrote: Not sure cibc, but in TD, if you switch or sell after 3 pm, the price is decided by next day closing price

Which time did you sell mutual funds
Thanks for the reply!

So if I wanted the mutual fund value locked in TD, I should call telephone banking in the morning? I called CIBC yesterday after work, so it was about 5:30 pm.
Deal Addict
Sep 19, 2009
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Toronto
TheMeat wrote: Thanks for the reply!

So if I wanted the mutual fund value locked in TD, I should call telephone banking in the morning? I called CIBC yesterday after work, so it was about 5:30 pm.
Mutual fund prices are set daily, after the stock market closes, usually around 6pm. Whenever you place an MF order the price is unknown. In Canada the cutoff time for MF orders is 2pm. If an order is placed before 2pm, it will execute same day, at a price published at 6pm. After 2pm, next day 6pm.

So, the value of the position you see in the account is meaningless, before you sell the position.
Last edited by andrew4321 on Jul 24th, 2020 7:02 pm, edited 1 time in total.
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Oct 16, 2008
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Maple
OP

Would you complain if it went up by $50? It is depending on timing of request.
[OP]
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Feb 12, 2019
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teoconca wrote: OP

Would you complain if it went up by $50? It is depending on timing of request.
My complaint is that none of these so-called "financial service representatives" ever mentioned the mutual fund closing time to me.

Financial service representatives are just as bad as user car salesman, lawyers and real estate developers.
Sr. Member
Oct 27, 2012
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TheMeat wrote: My complaint is that none of these so-called "financial service representatives" ever mentioned the mutual fund closing time to me.

Financial service representatives are just as bad as user car salesman, lawyers and real estate developers.
The fund's prospectus would have disclosed that. Of course, you probably didn't read it and you deflect the blame onto others.
Deal Fanatic
Dec 5, 2006
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TheMeat wrote: My complaint is that none of these so-called "financial service representatives" ever mentioned the mutual fund closing time to me.

Financial service representatives are just as bad as user car salesman, lawyers and real estate developers.
That's ok. OP, we learn by doing. Next week when big tech report results, mutual fund price might go even lower, so you lost 50 today but might have saved 500

Have a good weekend
[OP]
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Feb 12, 2019
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ozzie16 wrote: The fund's prospectus would have disclosed that. Of course, you probably didn't read it and you deflect the blame onto others.
You sound like one of those guys that read every line every time there's a user agreement update on your email or ebay.
Newbie
May 9, 2018
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andrew4321 wrote: Mutual fund prices are set daily, after the stock market closes, usually around 6pm. Whenever you place an MF order the price is unknown. In Canada the cutoff time for MF orders is 2pm. If an order is placed before 2pm, it will execute same day, at a price published at 6pm. After 2pm, next day 6pm.

So, the value of the position you see in the account is meaningless, before you sell the position.
Don't forget settlement is t+2, so funds won't hit the account same day if it's anything other than a money market fund
Deal Addict
Jan 19, 2017
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TheMeat wrote: I tried to transfer all fund from a CIBC mutual fund account to a chequing account.

It's been over 24 hours, money still not moved, the value of mutual fund dropped +$50, why should I lose $50 just because they couldn't move the money fast enough, the rate should be the day I choose to take the money out, not the rate when the day the money is actually being taken out. THIS IS BULLCRAP.

Is there a bank that has its shit together', and can do it faster than these suckers at CIBC?
The title is not correct. It is called redemption or sale of the mutual fund units. Then the proceed of the sale is deposited into your cheque get acct.
[OP]
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Feb 12, 2019
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ml88888888 wrote: The title is not correct. It is called redemption or sale of the mutual fund units. Then the proceed of the sale is deposited into your cheque get acct.
I don't care about this "proceed of the sale", they just need to give me whatever money I have in the account on the day I made the phone call, the money they gain or lose through the "proceed of the sale" on the next day should be on them.

It should be added or docked from the wages of the so-called "fund manager".

Their process is garbage.

The only reason I keep some money in there is for future real estate investment.
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Jul 1, 2007
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It's generally common knowledge that mutual funds don't trade throughout the day on the open market, meaning you can't expect them to sell your mutual fund at the open, in the morning. If you request to sell your mutual fund at 5:30PM (90 minutes after the markets close, in eastern time), then your sale is processed at the close the next day. Always closing value, not the value throughout the day.
Money Smarts Blog wrote: I agree with the previous posters, especially Thalo. {And} Thalo's advice is spot on.
Deal Addict
Jun 8, 2004
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This has nothing to do with CIBC. All mutual funds operate this way in Canada since they were introduced in the late 80s.
You will never know the price when you buy or sell mutual funds. The price is always determined after the markets close. Settlement of the funds is delayed as well.

Only exception are money market funds that have a fixed nav of $10.
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Jan 19, 2017
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TheMeat wrote: I don't care about this "proceed of the sale", they just need to give me whatever money I have in the account on the day I made the phone call, the money they gain or lose through the "proceed of the sale" on the next day should be on them.

It should be added or docked from the wages of the so-called "fund manager".

Their process is garbage.

The only reason I keep some money in there is for future real estate investment.
You called at 5:30pm to place your order. Even if you had stock, instead of mutual fund, to sell, the stock market was closed already. So you can only get the price for next day, when stock market was opened again.
Just because you don’t understand how the mutual fund or stock market works, you can only blame yourself.

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