Feb 3 • Community Lounge
NAV Pro Tip #11: Swing Pricing — applying the swing factor to the final price ✅
Swing pricing is one of those “everything balances but the price is still wrong” traps.
One wrong sign (buy vs sell) or one outdated factor = silent NAV error.
Here’s my 3-minute pre-release check:
✅ 1) Is swing triggered and direction correct?
– Net flow vs trigger threshold (per policy)?
– Buy swing vs sell swing aligned to net flow direction?
– Cut-off time + flow source locked (TA/dealing file) before pricing?
✅ 2) Is the swing factor correct and evidenced?
– Correct factor table/date (or cost model) for this fund/share class?
– Any cap/floor limits applied (if your policy uses them)?
– Approval/audit trail saved (PM/board/oversight)?
✅ 3) Does the final swung price reconcile?
– Recalc: unswung NAV → apply factor (per method) → final NAV/price + rounding rules.
– Applied at the right level (fund vs class) and consistent across systems.
– Reasonableness vs prior “swung” days (expected bps impact).
Why it matters:
Swing pricing moves the official dealing price. The NAV can look perfectly “clean” while investors still get the wrong price if direction/factor is off.
Pro move:
Keep a daily Swing Evidence Pack: net flow calc → trigger check → factor source → final price calc screenshot.
Question: do you swing every day, or only on high-flow days? Comment “SWING” if you want the checklist format.
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NAV Pro Tip #11: Swing Pricing — applying the swing factor to the final price ✅
