OEIC pricing: usually single priced but can be dual priced.

OEIC pricing: usually single priced but can be dual priced.

• A. They are always priced at a single price
• B. They are priced by the authorised corporate director
• C. They can be priced either single or dual
• D. They are not priced daily

Answer: (C)

OEIC pricing can be either single or dual. In a single-priced structure, the same price applies for buying and selling shares, based on the fund’s net asset value per share. In dual pricing, there are separate prices: a bid price for investors selling to the fund and an offer price for those buying from it. The spread between these prices helps cover dealing costs and protects existing shareholders from dilution when there are inflows or outflows. Many OEICs use single pricing, but some funds adopt dual pricing depending on liquidity and dealing costs. So the statement that OEICs can be priced either single or dual is accurate. The other options are not correct because pricing isn’t restricted to always single, isn’t determined by the authorised corporate director alone, and funds are typically priced on a daily basis.

OEIC pricing can be either single or dual. In a single-priced structure, the same price applies for buying and selling shares, based on the fund’s net asset value per share. In dual pricing, there are separate prices: a bid price for investors selling to the fund and an offer price for those buying from it. The spread between these prices helps cover dealing costs and protects existing shareholders from dilution when there are inflows or outflows. Many OEICs use single pricing, but some funds adopt dual pricing depending on liquidity and dealing costs. So the statement that OEICs can be priced either single or dual is accurate. The other options are not correct because pricing isn’t restricted to always single, isn’t determined by the authorised corporate director alone, and funds are typically priced on a daily basis.