Surrendering Value of Fund

N

nightpark

Registered User
Messages
17
Hi

I recently made a surrender to BOI for a policy I had with them which was worth approx €11 - €12k. They told me that the value would be as at the day they recived the docs. They recived them on 5 Nov at which the website showed a valuation of €11.7k. After a few weeks of waiting they paid me €10.8k and said that this was definitely the value as of 5 Nov. Surely this couldn't be right and is there anything I can do if they are printing wrong valuations on the website.

Thanks
 
Are you sure that it's not simply a case of the fund (unit) values varying day to day based on the value of the underlying assets (e.g. shares etc.)? Also bear in mind that any gross fund valuation will still be subject to 23% exit tax on any growth earned so the net value (into your hand) will be lower.
 
I realise the value of the units will rise and fall but they told me that it would be final value as of the date when they received the final docs. This should be the Net Assets Value per unit by the number of units held in the fund which was shown as €11.7k on the website and €10.8k in the final payment. They have sadi there is nothing else they can do.

Surely there shouldn't be this much of a discrepancy.
 
There was also no tax payable as there was no growth above the amount paid in to the fund.
 
There's a couple of things that could account for this.

First of all, most funds would be priced at a fixed time daily, say, noon or close of business. The value of the fund would be calculated from the price of the component shares or other assets at that time. When cashing in, the client normally receives the price at the next valuation, not the price from the previous day's valuation, which may be higher or lower. This might have been the price you saw on the website. That said, without knowing anything about the nature of the fund, you would have been very unfortunate to suffer a 7.7% drop in a single day.

Secondly, there may be a bid-offer spread on the unit price. The offer price is the price you can buy units at and the bid price is the price you can encash units at. The offer price will be higher than the bid price. Is it possible you valued your investment at the offer price, not the bid price?

Your best bet would be to put your query to BoI in writing asking for a detailed written explanation. If you are not satisfied with the response, make a formal written complaint. If that does not resolve the matter, you can make a complaint to the Financial Services Ombudsman free of charge and their decision would be binding on the bank.
 
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