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How is my money invested?

When you send money to be invested, the following steps happen:

You make the deposit
Your deposit is received
The orders are sent to the fund providers
The investments are completed

Receiving your deposit

We count up to 3 business days (although it usually happens faster) between you making the deposit and the money being received at the Rabobank deposit account (managed by NNEK). The money stays on that account until it is sent to the fund providers to be invested.

Sending orders to the fund providers

Sometimes orders are passed on the same day, but sometimes it is only the working day after, depending on the timing that the deposit comes in. Here, NNEK (who manages your investments) will create the orders orders that fit the portfolio you are investing in. The orders are then sent to the different fund providers, namely Vanguard, iShares (BlackRock) and Amundi. This happens once a day and only when the financial markets are open (Monday to Friday).

Completion of the investments

It can take up to 4 working days for the investments to be confirmed. Purchases are not instantaneous as you are not purchasing ETFs through an exchange but rather institutional funds where the orders are run once a day. The investments offered by NNEK and made accessible through the Curvo app are for long-term investing and not suited for timing the market.

Once the fund providers confirm the orders, the custodian safeguards the assets. The custodian is a legal entity separate from both Curvo and NNEK.

You will usually see the investment reflected in the Curvo app the same day, although it can be a day later depending on when we receive the information from the custodian.

Why aren't the investments instantaneous?

The investments take a few days because of the settlement period. This is the time it takes to confirm a trade. On a stock exchange, there's a clearinghouse that facilitates trades between buyers and sellers. Even though trades take multiple days to settle, the clearinghouse can guarantee the trade, which is why you can see those trades directly in your broker account. Part of the broker fee goes towards paying the clearinghouse for this service. For the funds used in the portfolios, the settlement period is T+2 and T+1, so respectively two days and one day after the order execution. That's the period we need to wait to get confirmation of the order.

The funds are purchased directly from the fund providers (Vanguard, iShares and Amundi) so there's no clearinghouse in between. This way of investing is more suited for the long term. You don't get immediate trades, but there's no bid/ask spread and also no need to work with middlemen like a stock exchange (e.g. Euronext or XETRA) or a clearinghouse. The funds where your money is invested provide one price per day. This is not a random or worse price for you, it's the new price that's the result of the movements of the underlying stocks/bonds in the fund that day.

Still have questions?

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Updated on: 11/01/2024

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