Guide to Unit Trust Prices

The Star Early Edition - - MARKETS -

Here’s how to read the ta­ble: FEE – This fig­ure, which is a per­cent­age, shows the max­i­mum amount that a client might be charged by the fund man­ager. A 5.7 per­cent fee would im­ply that out of ev­ery R100 in­vested, R5.70 is go­ing to the man­ager and R94.3 is go­ing into the unit trust. This fig­ure in­cludes the value added tax payable on the in­vest­ment. It is some­times pos­si­ble for the client to ne­go­ti­ate on fees. NAV – This is the ac­tual net as­set value of a unit, mea­sured in cents. For ex­am­ple, if you had 10 units and wanted to know their value to­day, you would mul­ti­ply the given net as­set value by the 10 units. Yield – This fig­ure is more rel­e­vant to funds which pro­duce div­i­dends or in­ter­est in­come and doesn’t of­ten ap­ply to eq­uity funds where you’d rather be look­ing for cap­i­tal ap­pre­ci­a­tion. Money mar­ket funds, in­come funds, bond funds and fixed in­ter­est unit trusts would show a yield. CPU – This shows how many cents you are earn­ing per unit that you have in­vested in. High and Low – This is the an­nual high­est and low­est net as­set value recorded for each unit trust. Only one price is is­sued per day so it’s not pos­si­ble to track daily highs and lows.

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