Menu Our services in the selected location:
  • No services available for your region.
Select Location:
Remember my selection
We have been made aware that there are external parties falsely claiming to carry out financial services on behalf of Goldman Sachs (including Goldman Sachs Asset Management International and Goldman Sachs International) in order to market fake investment products and to solicit monetary payments. These external parties may pose as Goldman Sachs through the use of fraudulent communications via email, instant messaging or phone, as well as through the use of fake brochures and other documents containing Goldman Sachs branding and logos.
The Financial Conduct Authority of UK has issued warnings about these fraudulent activities which can be found here and here.
It is important to know that any communication you receive from Goldman Sachs would only come from an e-mail address and/or be found on the website. Further information regarding how you can protect yourself from fraudulent activity online and how you can contact us about this can be found on the Goldman Sachs Security page, available here.
Your browser is out of date. It has known security flaws and may not display all features of this and other websites

Swing Pricing

Protecting the interest of existing investors in a fund


What is Swing Pricing and what is it designed to do?

Buying and selling securities in a fund generates trading costs such as brokerage fees, taxes and more. These costs can negatively impact the fund’s performance. Swing Pricing is a mechanism that transfers an estimate of the trading costs generated to investors who are subscribing into and redeeming out of a fund.

How does GSAM apply Swing Pricing? 

If net flows exceed a pre-determined level (known as the ‘Swing Threshold’), an adjustment (known as the ‘Swing Factor’) which is a percentage estimate of the trading costs is applied to the NAV per share. Please see the examples below for more information.

Examples – Effect of Swing Pricing on NAV

For the purpose of the examples we will assume the following:

1. Swing Factor 0.25%
2. NAV per share $100
3. Fund’s total assets under management (AUM) $100m
4. Swing Threshold (as a percentage of AUM) 3%



Example 1: No swing



Subscriptions $6m
Redemptions $4m
Net flows $2m


The net flow of $2m does not exceed the Swing Threshold of $3m; therefore no swing adjustment is applied.

NAV per share: $100

Example 2: NAV Swung Up (Net Inflows)


Subscriptions $10m
Redemptions $3m
Net flows $7m


The net flow of $7m exceeds the Swing Threshold of $3m; therefore an up-swing adjustment is applied.


NAV per share: $100.25

Example 3: NAV Swung Down (Net Outflows)


Subscriptions $8m
Redemptions $12m
Net flows: -$4m


The net flow of - $4m exceeds the Swing Threshold of -$3m; therefore a down-swing adjustment is applied.


NAV per share: $99.75

Are the Swing Factor and Swing Threshold disclosed to investors?

The Swing Threshold will not be disclosed to investors as disclosing this may encourage subscriptions or redemptions below the swing threshold level which is not in the interest of long term investors.

Additionally, historical Swing Factors can be made available upon request. GSAM also publishes the prior month’s Swing Factor in the Monthly Fund Update of the relevant fund.

How can Swing Pricing impact the performance of a fund?

The below diagram illustrate how Swing Pricing may introduce some volatility to a fund’s performance due to the use of estimated rather than actual trading costs.

Assuming a fund’s performance is identical to the benchmark performance at the onset and the Swing Factor is 1%. (Note: NAV per share rounded to 2 decimal places).


For illustrative purposes only

In the above example, if the actual as opposed to estimated trading costs were applied, the fund’s performance would mirror that of the benchmark.

How can I get more information on this topic?


For more information on Swing Pricing please reach out to your local Sales representative.