Download a current list of suspended funds
If a fund suspends trading, the Q&As below will provide some useful information:
You should always confirm the latest position on pricing direct with the fund manager as adjustments may vary. There may also be funds that are currently non-tradable on the platform which may have fund adjustments.
The following terms provide a definition of the various actions that some fund managers may decide to take.
This is an explicit charge that fund managers may apply to specific client deals (usually when they’re individually or collectively large relative to the size of the fund) to cover the cost of buying and/or selling the underlying assets held by the fund.
A fund manager may impose a dilution levy for investors who’ll continue to hold shares/units in a fund from bearing costs incurred as a result of other investors choosing to sell their holdings in the fund.
A dilution levy is usually expressed as a percentage of the value of the deal.
A dilution levy differs from a dilution adjustment in that it's a separate, explicit charge that fund managers can choose to apply to specific client deals. See more about dilution adjustments below.
A dilution adjustment is a change to the share/unit price of a single-priced fund. It’s applied by fund managers to help existing investors from potentially bearing the costs of buying or selling underlying investments as a result of large inflows into or outflows from a fund. These costs can reduce – or dilute – the value of the fund for existing investors, so when a dilution adjustment is applied, this can reduce this effect on the investors remaining in the fund.
The share/unit price of a fund is usually based on the market’s valuation of its underlying assets, taking into account a number of factors including fees, charges and expenses. A fair value adjustment may be applied in circumstances where the last valuation of the underlying assets is unlikely to reflect their current value (eg where the asset isn’t valued as frequently as the fund is priced and market conditions have changed).
A fair value adjustment means that the daily fund price is amended to be more reflective of the likely price that the fund could buy and/or sell underlying assets and ensures that all investors (whether dealing in the fund or not) are treated fairly.
Fund managers may, in specific circumstances, decide to stop accepting new purchase and redemption requests where they and the trustee/depository agree it’s in the best interests of investors in the fund to do so. Any dealing requests placed while the fund is suspended may be cancelled, or held and processed when the suspension is lifted, depending on the circumstances and the terms set out in the fund’s prospectus.
Discretionary managers and advisers with discretionary permissions are now required to provide quarterly client reporting. Clients must also be informed of depreciations in the value of their portfolio by 10% (and any subsequent 10%) within each reporting period.
Market corrections may be expected, and can even be a healthy function in normal markets.
The link below provides some reassurance messages which you might find useful when talking to clients about the impact of market volatility on their investments:
You can find answers to a wide range of popular policy, product and servicing questions in our help and support section.
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This website is provided by Standard Life Savings Limited. It describes products and services provided by the abrdn Group (including Standard Life Savings Limited and Elevate Portfolio Services Limited) and the Phoenix Group (including Standard Life Assurance Limited, Standard Life Trustee Company Limited and Standard Life International dac).
The abrdn Group comprises abrdn plc (SC286832) and its subsidiaries. The Phoenix Group comprises Phoenix Group Holdings plc (11606773) and its subsidiaries.
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Wrap Platform, Wrap Personal Portfolio, Wrap ISA and FundZone Platform are all provided by Standard Life Savings Limited, which is part of the abrdn Group.
Standard Life Savings Limited is registered in Scotland (SC180203) at 1 George Street, Edinburgh, United Kingdom, EH2 2LL. Standard Life Savings Limited is authorised and regulated by the Financial Conduct Authority.
Please see your terms and conditions for more information on the use of the Wrap platform.
Wrap SIPP and Wrap Onshore Bond are both provided by Standard Life Assurance Limited, which is part of the Phoenix Group. Standard Life Assurance Limited is registered in Scotland (SC286833) at Standard Life House, 30 Lothian Road, Edinburgh, EH1 2DH. Standard Life Assurance Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
Wrap Offshore Bond is provided by Standard Life International dac, which is part of the Phoenix Group. Standard Life International dac is a designated activity company limited by shares and registered in Dublin, Ireland (408507) at 90 St Stephen’s Green, Dublin. Standard Life International dac is authorised and regulated by the Central Bank of Ireland and subject to limited regulation in the UK by the Financial Regulation Authority. Details about the extent of its regulation by the Financial Conduct Authority are available on request.
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Please see your terms and conditions for more information on the use of the Elevate platform.
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abrdn plc is registered in Scotland (SC286832) at 1 George Street, Edinburgh, EH2 2LL