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What is swing pricing?

If there are a lot of investors either buying or selling en masse on a particular day, an investment fund will incur charges (such as commission for buying new holdings). Rather than taking the charges out of the fund (and potentially harming the value for the remaining investors) the FCA has given fund managers the option of 'swing pricing' - the fund can swing its valuation method from the mid price to the bid or offer price. This way, the fund can alter valuations to represent the true cost of producing or disposing of the extra units, in order to protect existing investors. We are unable to provide advanced notice of swing pricing.

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