FAQ: How are my units calculated?

The pricing method and unit allocation are described in the fund prospectus. Under the single pricing method units are calculated by:

Effective Investment Amount = Original Investment Amount X [100% - Sales Charge - GST]
No. units = Effective Investment Amount / Price
subject to rounding and/or truncation.

Simple example

For example, you purchased $10,000 of unit trusts at a 0% sales charge and the price reported was $1.30.

Effective Investment Amount = $10,000 x [100% - 0%] = $10,000.
No. units = $10,000 / $1.30 = 7692.307 units.

Example with GST

For example, you purchased $1,000 of unit trusts at a 1.2% sales charge and the price reported was $5.2356.

Sales charge with GST= 1.2% x 1.07 = 1.284%
Effective Investment Amount = $1,000 x [100% - 1.284% ] = $1,000 - $12.84= $987.16
No. units = $987.16 / $5.2356= 188.548 units.

Further explanation of unit allocations can be found in this MoneySENSE page.

Note fund managers employ varying degrees of precision in their fund prices and unit allocations, together with varying methods of rounding (see individual fund prospectus for details). These effects mean your units may vary slightly from that implied in the examples above. An example of dual pricing unit allocation may be found in the MoneySENSE page linked above.