4.3 Inflows, Outflows and Cancellation Prices
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The price of investment trust shares is demand sensitive. Unit
trust and OEIC prices are not directly influenced by demand but
can be varied at the fund manager's discretion.
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The bid and offer prices of a unit trust can be varied, within
limits, to encourage investors to buy or retain units. Fund managers
can increase the bid/offer spread to 13%. This is achieved by valuing
both bid and offer prices on the offer price or on the bid price
basis. The bid or offer price is moved within the 13% range but
the bid/offer spread remains at its usual level e.g. 6%.
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