Each day we value the assets of the M&G Property Portfolio on both an ‘offer’ basis (how much they would cost to buy) and a ‘bid’ basis (how much the fund would receive if they were sold). The difference between the two prices reflects the costs of buying and selling properties, in particular Stamp Duty Land Tax paid on purchases which can account for up to 5% of the property value. The published dealing prices are on either the offer basis or bid basis, depending on whether people are generally buying fund shares (the fund is in ‘net inflow’) or selling shares (the fund is in ‘net outflow’).
The pricing basis did not change during 2017. However, a change in the pricing basis during 2017 would have resulted in a price movement of between 5.51% and 6.26% (6.14% at 12/09/2018).
For large deals (regarded as deals in excess of £50,000) the dealing price you receive may be different from the published price. If you are buying shares, you may receive a price that is higher than the quoted offer price. If you are selling shares, you may receive a price that is lower than the quoted bid price.