Why is there a different price quoted for the purchase and sale of units in Aberdeens unit trusts?
When the unit trust accepts cash from the sale of new units or is required to raise cash to pay for the redemption of outstanding units the investment manager must normally purchase additional investment securities or dispose of such securities respectively. The purchase or disposal of these securities results in certain costs such as brokerage, and settlement and clearing costs. These costs must be borne by the investor making the purchase or sale of the units rather than all unitholders, in general. The difference in the quoted purchase and sale price for units therefore reflects the recovery by the fund of the costs involved in acquiring or disposing of investment securities in relation to the purchase or sale of units. A mid-price per unit is also quoted. This normally falls half-way between the quoted sale and purchase prices of the units. The mid-price represents the actual net asset value per unit.
