Definitions for "Dilution Levy"
Keywords:  oeic, levy, icvc, sicav, hassle
Bid-offer spreads are not allowed for OEICs. Instead, they have a dilution levy which is supposed to cover the cost for the hassle of someone buying into or selling out of an OEIC. The money goes into the OEIC's fund itself, not the pockets of the company running it.
A charge levied by the ACD of an ICVC to be made for the purposes of reducing the effects of dilution
Reduces the effect of  dilution by making a separate charge to investors when they buy or sell  shares in the fund. The amount of the levy is paid into the fund for the protection of existing/continuing shareholders. The dilution levy is not applied for the benefit of M&G.