Hi Paul
With reference to the WCM Quality Global Growth Fund that was covered by James Dunn in the latest Switzer report. I am interested in buying shares in the fund when they become available, however why is the application price $5.00 a unit as opposed to WAM Global application unit price of $2.20 when first listed? I would be interested in receiving your comments, thank you.
A: There is no significance in the offer price for a quoted managed fund. Obviously, the dollar amount you invest is significant.
In regards to choosing $5.00, I think there are two reasons:
- So that there is no confusion with WCQ; and
- To get the right interval for the market making. At a price of $5.00. a 1c spread is 0.20% (between bid and offer).
