Method of pricing unitised investments. The purchasing and selling price of units is the same. Pricing method always used for OEICs and may be used for unit trusts.
Method of pricing unit trusts so that investors buy and sell at the same price. Commonplace in Europe, being resisted by the UK unit trusts industry. Cf. bid/offer spread, dual pricing.
A single price is calculated by taking the average of the buying and selling prices of each of the assets held in a fund (their mid-market prices). With the single pricing system, any initial charge the Manager may take is charged separately, rather than being included within the difference between the buying and selling prices (the spread) which is the case with dual pricing. An effect of the single pricing system is a possible dilution in the value of a fund when investors buy and sell shares.
Single pricing means that there is just one price for both buyers and sellers of the units or shares. This contrasts with dual pricing where there is one price for sellers and a higher price for buyers, sometimes known as a bid / offer spread.
OEICs* and some unit trusts* have a single price at which investors both buy and sell. The initial charge* is shown separately and is charged in addition to the unit/share* price.
(go to top) Offshore funds may quote one price for buying and selling but may well levy a separate sales charge (often 5-6 percent) when investors buy.
A method of pricing unitised investments.