AXA Framlington change pricing policy

Posted by Jason Chapman in Fund and industry updates category on 31 Aug 14


Axa pricing change

Change to the pricing of the Funds (dual to single pricing)

The pricing of units in the AXA Framlington Unit Trust Funds is currently carried out on a dual pricing basis. This means that two unit prices are calculated each day:

  • the “offer” price (sometimes known as the “purchase” price), which is applied when units are purchased by investors; and
  •  the “bid” price (sometimes known as the “redemption” price), which is applied when an investor redeems units.
Using this dual pricing system, the purchase and redemption prices may vary depending on whether the Fund is expanding or contracting.

From the dates set out below, the pricing of units in the Funds will be carried out on a single pricing basis so that a single price is applied to any transaction in shares whether the investor is purchasing or redeeming shares.

As well as moving to a single price structure, AXA is introducing a 'swinging price'.  With a swinging price, the sell price for larger redemptions can be adjusted (swung) to offset the transactional costs associated with the redemption.  This means investors remaining in the fund are not impacted by such costs.

Reasons for the change

The switch to the new pricing policy will provide a greater level of simplicity to investors purchasing and/or redeeming units at a particular valuation point as the price of a unit will be the same for both sets of investors. Further, swing pricing is designed to protect the interests of existing investors in the Funds by seeking to minimise the effect of dilution (a reduction) in the value of the Fund property as a result of the costs incurred in dealing in the underlying investments.

This policy change is becoming increasingly common across the fund industry in order to reduce charges and increase protection for investors.

Timing

The change from dual to single pricing is being carried out in phases over four separate weekends by the administrator of the Funds, International Financial Data Services Limited.

Please see the table below for details of the first date on which the new pricing policy will apply to your specific Fund:

Fund Name Effective Date of Change
AXA Framlington Emerging Markets Fund 8 September 2014
AXA Framlington Blue Chip Equity Income Fund 8 September 2014
AXA Framlington UK Mid Cap Fund 8 September 2014
AXA Framlington UK Growth Fund 8 September 2014
AXA Framlington Japan Fund 8 September 2014
AXA Framlington American Growth Fund 15 September 2014           
AXA Framlington Biotech Fund 15 September 2014
AXA Framlington Monthly Income Fund 15 September 2014
AXA Framlington UK Select Opportunities Fund   15 September 2014
AXA Framlington Global Opportunities Fund 15 September 2014
AXA Framlington Financial Fund 15 September 2014
AXA Framlington Equity Income Fund    22 September 2014          
AXA Framlington Managed Income Fund 22 September 2014 
AXA Framlington Global Technology Fund           22 September 2014 
AXA Framlington European Fund  6 October 2014                   
AXA Framlington Health Fund 6 October 2014
AXA Framlington Managed Balanced Fund 6 October 2014
AXA Framlington UK Smaller Companies Fund     6 October 2014
AXA Framlington General Trust 6 October 2014

Costs

AXA Investment Managers will be meeting all the costs associated with this change of pricing.

Approvals

The Financial Conduct Authority has confirmed that the changes will not affect the authorisation of the Funds under the Financial Services and Markets Act 2000.

Tell us what you think

We would love to hear what you think of our Insight area or if you have any questions or suggestions.

Tell us what you think

Media Enquiries

Need to speak with our PR Team?

Contact us

Related content

: explore

Use our Fund and Equity research tool to find investment instruments that meet your criteria.

Take me exploring

: play

Why not take a look at : play which enables you to have a risk-free try at selecting funds?

Find out about : play

: review

Use our review tool to keep a track of the assets that you hold with the Willis Owen agency or elsewhere.

Review my existing assets