
Dual and Single Priced Funds
We have purchased a property fund on a platform, the fund has recorded a 5% loss at purchase due to dual pricing - this raises a number of issues :
Platforms must disclose whether funds are single or dual priced (cost is one of our fund selection criteria's) i shouldn't have to look in a KFD for every fund I am choosing to find this out. lack of clarity !!
Why dual price if the fund charges are going to be closer to 8% to 10% or more, surely single pricing gives more clarity ?
If a funds charges after a platform discount could swing to more than 3% plus then does dual pricing work as this swing indicates a fund trading closer to the offer than bid price, I thought it was used to protect existing investors within the fund ?
Dual pricing doesn't really provide any clarity on what the costs are for, surely a property fund does not actively trade or turn over stock to experience such high taxes or trading costs?
This situation yet again shows that fund pricing whether single or dual pricing is hidden away and lacks clarity, in would be interested in others thoughts regarding this ?