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 (theirÂ mid-market prices). With the single pricing system, anyÂ 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 possibleÂ dilution in the value of a fund when investors buy and sell shares.