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. |
Unit precision is the number of decimal places used to record fund units. A fund manager can increase or decrease this number.
We process the change automatically and update your holding where needed.
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.
What happens if the number of decimal places increases?
Your existing number of units stays the same.
For example, 12.345 units and 12.3450 units are the same quantity. Increasing precision alone does not add or remove units or generate a cash adjustment.
What happens if the number of decimal places decreases?
Your holding may need to be rounded to fit the new precision.
When the fund adjusts that combined holding, we allocate the resulting units. Your own unit balance can therefore increase or decrease by a fraction. A very small holding may be reduced to zero.
Will cash be added to or deducted from my account?
If the event includes a cash adjustment:
- Units removed: cash is credited to your account.
- Units added: cash is deducted from your account.
The amount depends on the difference between your old and new unit balances and the cash rate applicable to the event. Not every precision change includes a cash adjustment.
Cash is processed separately from the unit change, so the adjustments may happen at different times.
💡 Example
The fund reduces its unit precision from four to three decimal places.
Your holding changes from 1.2345 to 1.234 units, removing 0.0005 units.
If the event's cash rate is £100 per unit adjusted, you receive:
0.0005 × £100 = £0.05
The cash rate in this example is the rate used for the adjustment; it is not necessarily the fund's current unit price.
What if I do not have enough cash for a deduction?
- Invest: the full deduction can create a negative cash balance. Any negative amount will need to be repaid.
- ISA and SIPP: we deduct up to your available free cash without taking the account negative. Any remaining amount stays outstanding, and collection is retried as free cash becomes available.
Your unit adjustment can be completed while a cash amount remains outstanding.
Can I still buy or sell the fund?
Buying and selling may be temporarily unavailable while the change is processed.
What do I need to do?
You do not need to place an order to adjust your holding. We process the unit change and any applicable cash adjustment automatically.