Fund Operations
Swing Pricing
Definition
What is Swing Pricing?
An adjustment to a fund's dealing price intended to allocate transaction costs to subscribing or redeeming investors.
Example in practice
How This Looks in Practice
Heavy redemptions cause the NAV to swing downward so remaining investors do not bear all selling costs.
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Related Terms
Fund Operations
Dealing Cut-Off Time
The deadline by which a valid fund instruction must be received for a particular dealing day.
Fund OperationsValuation Point
The specified time at which a fund values its assets and calculates dealing prices.
Fund OperationsForward Pricing
A fund-pricing method under which orders receive a price calculated after the instruction is accepted.
Fixed IncomeBond
A debt security through which an investor lends money to an issuer in return for promised payments.