In-Specie Transfers & residual cash- how fees & "Buying Power" works

Created by Corinne O'Brien, Modified on Fri, 28 Jun at 12:56 PM by Rohith Krishna

Whilst in-specie transfers are in progress, fees are calculated on the assets which have been received and these fees will be applied to the account as part of our month end processing.

It is standard process for residual transfer balances to be paid once the re-reg element of the transfer is complete. This means that it is more than likely that the account will go into debt following the posting of the first lot of monthly fees.

Once an account goes into debt, raises will be actioned to the value of buying power. We will not wait for all in-specie transfers to be completed.

The sell downs will satisfy 'buying power' and provide sufficient cash for 3, 6 or 12 months of fees, depending on how your firm's configuration has been set up. (The Hubwise default is 12 months of fees)

If you do not want disproportional sell-downs to happen, you can "Update Status" in the All Account Actions cog to "Trading Suspended". This will ensure that no raises are actioned and the portfolio will not be skewed.

N.B. - Remember to "Update Status" back to "Active" as soon as the in-specie transfer is completed and sales and buys can happen as normal.

To counter any disproportionate sell-down, the account can be rebalanced once all transfers-in are received.

When the residual cash arrives at the end of the in-specie transfer process this cash rectify any debt position - if a surplus is received this will be invested in line with the current investment strategy based on the account buying power calculation.