Axa Investment Managers is changing the pricing policy on a number of funds from single to swing pricing.
The changes, which aim to protect existing investors from any notable fund purchases or redemptions, take effect on 10 April and affect the Distribution range, the UK Fixed Income range and the Rosenberg UK Oeic fund range.
Axa says it is making the switch in line with the rest of the fund industry where swing pricing is widely used.
In September 2014 Axa IM modified the pricing policy on the Axa Framlington unit trust fund range and the Axa General Trust to simplify sales and redemptions for investors by moving from dual pricing to single swing pricing.
A spokesperson for Axa IM says: “This modification brings us in line with our other UK domiciled fund ranges at AXA IM, ensuring consistency.
“Swing pricing is widely used by other funds in the industry and we believe an adjustment to the price of a fund’s shares is a fair way of allocating the costs of dealing in the fund’s investments and a more efficient means of countering dilution than making a separate charge. Our intention is to continue to protect investors from the effects of dilution where it is significant, however, we do not expect to apply swing pricing frequently.”