Lump sums for new business and top-ups – we pre-fund the purchase of units where we have received a payment but this is yet to clear in our bank account (i.e. cheques and BACS payments).
Pension tax relief – we add basic rate tax relief when applying personal contributions and reclaim it back from HMRC. This enables clients to benefit from up to an extra 45 days of potential investment growth.
Switching – where the switch is for a monetary amount, we place both the buy and sell trades on the same day. For switching, on a percentage basis, we process the sales on day 1 and pre-fund the sale trades on the following working day once we know what level of cash has been raised from the sale. We do not need to wait for settlement. All of our trading is facilitated electronically.
We do not pre-fund income withdrawals; we sell units for the value of the payment up to seven working days before the payment is due.