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How is my money invested?

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. Curvo is for long-term investing and not suited for timing the market.

Here is a rough timeline of events when you send money to your Curvo account:
Your money is received at the Rabobank deposit account.
The next business day, this amount will be processed by our investment partner NNEK and orders will be created that fit the strategy you are investing in. The orders are passed on the same day to Vanguard, iShares (Blackrock) and BNP Paribas (the fund providers for the Curvo portfolios). This needs to happen when the markets are open (Monday to Friday) and these are run once a day.
Once confirmation the fund providers is received, the custodian fully processes the execution of the orders and safeguards the assets. The custodian is a legal entity separate from both Curvo and NNEK.
That same day (but it can be a day later depending on when we receive the information from the custodian), you will see an updated portfolio in the app.

If we dive deeper though, it works as follows. 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. The reason the execution can take a few days is 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 in the Curvo 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 BNP Paribas) 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.

If you have any questions regarding this, click the "Chat with us" button below.

Updated on: 25/04/2023

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