The value of your investment can go up or down, and you may get back less than you invested. Nothing in this article is investment, tax or legal advice. |
A fund you hold can be affected by a few different fund-level events, such as a merger, a share class conversion, or a suspension of dealing. Here's what each of these means for you.
Sometimes a fund manager merges one fund into another. If this happens to a fund you hold, your units are automatically converted into the equivalent value of units in the new fund, and we'll aim to let you know in advance where possible.
A merger may have tax implications depending on how it's treated for tax purposes. If you're unsure, speak to a qualified tax adviser.
Unless we tell you otherwise, we don't facilitate voting or participation in unitholder meetings, including in connection with a merger, for funds held in your Invest account or SIPP. For your Stocks ISA, see below.
Mutual funds are available to UK residents only and are being rolled out gradually, so they may not be available to you yet. If you're eligible but don't have access yet, you can join the waitlist in the app and we'll let you know when access becomes available to you.
Can I still trade a fund that's about to merge?
In the run-up to a merger, the fund manager may restrict dealing in the fund being merged away, for example to buy-only, sell-only or suspended, following their own instructions to us. This is a rare case rather than something that happens with every merger, and it doesn't affect the value of your existing holding.
What is a share class conversion?
A fund manager may occasionally move investors from one share class to another within the same fund, for example, into a lower-cost class. This doesn't require any action from you, and we'll notify you when it happens.
What does it mean if a fund is suspended?
In rare, exceptional circumstances, a fund manager can temporarily suspend dealing to protect investors. During a suspension, you can't buy, sell, or transfer that fund, and its price may not be updated. Your existing holding stays visible, and normal dealing resumes once the suspension is lifted.
Will I be notified about these events?
Yes, we'll notify affected clients as far in advance as possible of a known event. You'll also see a trading notice on the fund's page, and we may send you a notification shortly before a restriction takes effect.
What happens if Trading 212 stops offering a fund I hold?
This is different from the fund itself closing or merging. It's our own decision to remove a fund from the platform.
If this happens, we'll give you reasonable notice, as set out in our Terms, and a window to sell or transfer your units elsewhere.
If you don't act within that window, we may sell your units on your behalf and credit the proceeds to your account. In an Invest account, this sale may have tax implications, since it realises any gain or loss on the holding at that point.
Can I vote at a mutual fund's unitholder meetings?
Unless we tell you otherwise, we don't facilitate voting rights or participation in unitholder meetings for mutual funds. If you hold a mutual fund in your Stocks ISA, you can ask us to arrange for you to attend meetings, vote and receive investor documents, as set out in our ISA Terms.