Why do some funds have different Buy and Sell prices whilst others have the same.

dividendhero

jamei305 wrote: »

Where the spread includes a percentage initial fee, sometimes this element is refunded. For example iShares Emerging Market Equity Index H Acc currently has a spread of 160.0p - 168.80p. This 8.8p spread is made up mostly of the initial charge - 5% of 168.8p i.e. 8.44p which is refunded on most platforms e.g. HL. The actual purchase price would be 160.36p giving a spread of roughly 0.2%.

I emailed HL about this question, albeit about their own funds and got exactly same response as you quoted

Asghar

Old Mutual are changing the pricing structure on some of their funds, seem to be the popular ones as well.

From 29 January 2018 they will change to single pricing, this means they will also apply a dilution adjustment to cover costs.

http://www.omglobalinvestors.com/modules/LiteratureManager/LiteratureManager/DownloadLiterature/OTHER/58166/Old-Mutual-UK-Mid-Cap-Fund/Notice%20to%20investors%20-%20changes%20to%20pricing%20and%20charging%20policies

LK17

What exactly is a dilution adjustment. Is it a percentage of a set sum or can they just pick a figure out of the air!!!.