Fund unit costs

Subscriptions and returns incur costs at portfolio level. Subscriptions provide additional liquidity. In the event of returns, additional liquidity must be created by selling assets. These transaction costs influence performance and are borne by all investors. Issue premiums are usually used to cover marketing expenses. Returns fees can be credited to the fund management or the fund pool. The following costs are incurred by the fund on adjusting the fund portfolio when shares are issued or redeemed: brokerage fees, commission, taxes and surcharges, spread between bid and ask prices. Solutions: charging the costs of buying or selling titles to the party who caused the costs, swinging single pricing or dual pricing. These methods are known as anti-dilution measures.

Term-Nr.: 405

German: Kosten Anteilsgeschäft (482)

Source: SFO D15 2010 m. e. E., 24.04.2010

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