Price Calculation
The price of every unit purchased and redeemed by unit holders in the FHUT is calculated on a fortnightly basis.
Entry Unit Price
The Entry Unit Price is the price paid when purchasing a unit in the FHUT. The entry unit price is calculated fortnightly based on the acquisition value of the trust’s investments plus the entry fee component, which is divided by the units in issue. The acquisition value is the sum of the Net Asset Value (NAV) of the Trust and the Transaction Cost Factor.
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ENTRY UNIT PRICE
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Formula
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Example | |
| Step 1 | NAV of the Trust (a) | $7,800,000 |
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Step 2
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+ Transaction Cost (b) (2.5% of investment: assuming all investments in listed stocks) | $195,000 |
| Step 3 | ÷ Units in issue (c) | 10,500,000 |
| Step 4 | = Value per unit | $0.7614 |
| Step 5 | + Entry fees: 3.5% (Refer to p.30 for explanation) | $0.0266 |
| Step 6 | = Entry Unit Price (before rounding) | $0.7880 per unit |
| Step 7 | = Entry Price Per Unit (rounded upwards) | $0.79 per unit |
| Step 8 | Manager’s Rounding (d) (Should always be less than $0.01) | $0.0020 |
(a) NAV represents the net asset value of the Trust being the sum of investments at market value, the cash available for investments, accrued income and income already received less any expenses owed by the Trust, borrowings of the Trust and any other liability owing by the Trust.
(b) The Transaction Cost factor represents what one would pay, in addition to the price, to acquire the equivalent investment. Assuming that all investments are in listed stocks, 2.5% is the cost of purchasing stocks.
(c) The Units in Issue are the current units that are in issue to all investors of the Trust.
(d) Manager’s Rounding is the fraction of a cent that is added to the entry value after adding entry fees to round up the entry price to the nearest cent and is carried forward for the next pricing.
Exit Unit Price
The Exit Unit Price is the price of a unit when units are redeemed at FHUT.
The exit unit price is also calculated fortnightly based on the liquidation value of the Trust, which is divided by the units in issue. It is calculated at the same time the entry unit price is calculated. The transaction cost associated with liquidating investments of the Trust in order to pay for the units is deducted. Therefore, the liquidation value of the Trust is the difference between the NAV and the Transaction Cost Factor.
There will be no exit fee charged by the Manager.