Swing pricing

Swing pricing is a mechanism that ensures that you as a saver and investor in funds, do not have to pay when others buy and sell shares in your fund. The effect is simply explained that those who sell or buy must pay for the cost associated with the trade.

The unit value is adjusted with a swing factor on days where the fund has had a net subscription or net redemption that exceeds a predetermined threshold of the fund’s management capital.

The threshold for adjusting the unit value is set at the level where net subscription or redemption is expected to imply that the fund will make portfolio adjustments that impose transaction costs on the fund.

The swing factor for the individual fund is calculated based on average historical transaction costs and is evaluated regularly.

The routines are in accordance with the industry standard of the Norwegian Fund and Asset Management Association about subscription and redemption, which is available at www.vff.no