Manage Swing Pricing

Swing Pricing is a mechanism that adjusts a fund’s NAV to allocate costs related to subscription and redemption activity. It aims to protect shareholders by increasing or decreasing the NAV based on aggregate market spread and transaction costs. If the fund experiences net inflows, the system adjusts the NAV upwards and if there are net outflows, the system adjusts the NAV downwards.

Swing pricing can take two forms: Full Swing Pricing and Partial Swing Pricing. The full swing pricing involves adjusting the NAV of the fund daily, regardless of the amount of net inflows or net outflows. The partial swing pricing only adjusts the NAV when a predetermined threshold is reached.

Eagle Accounting automates the swing pricing process using predetermined swing factor parameters triggered by specified thresholds.