Price calculations
How is the Price of a Unit determined?
Entry Price
The Entry Price is the price paid when purchasing a unit in FHUT. The entry price is calculated bi-monthly 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.
- 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.
- 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.
- The Units in Issue are the current units that are in issue to all investors of the Trust.
- 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. The rounding value should always be less than $0.01.
| Formula | Example | |
|---|---|---|
| Step 1 | NAV of the Trust (a) | $135,840,600.00 |
| Step 2 | + Transaction Cost (b) (2.50% of investment: assuming all investments in listed stocks) | $ 1,337,510.67 |
| Step 3 | ÷ Units in issue (c) | 142,464,330.00 |
| Step 4 | (=) Value per unit | $0.96 |
| Step 5 | + Entry fees: 3.50% | $0.0337 |
| Step 6 | (=) Entry Price (before rounding) | $0.997 per unit |
| Step 7 | (=) Entry price (after rounding) | $1.00 per unit |
| Step 8 | Manager’s Rounding (d) (Should always be less than $0.01) | $0.003380 |
Exit Price
The Exit Price is the price of a unit when units are redeemed at FHUT. The exit price is also calculated bi-monthly based on the liquidation value of the Trust, which is divided by the units on issue. It is calculated at the same time the entry 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. The calculation of the exit price is as follows:
- 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.
- 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.
- The Units in Issue are the current units that are in issue to all investors of the Trust.
- Manager’s Rounding is the fraction of a cent that is deducted from the exit value to round down the exit price to the nearest cent. The rounding value should always be less than $0.01.
| Formula | Example | |
|---|---|---|
| Step 1 | NAV of the Trust (a) | $135,840,600.00 |
| Step 2 | – Transaction Cost (b) (2.5% of Investment: assuming all investments in listed stocks) | $ 1,337,510.67 |
| Step 3 | ÷ Units in Issue (c) | $ 142,464,330.00 |
| Step 4 | (=) Value per unit | $0.94 |
| Step 5 | – Exit fee: 0% (Refer to p.31 for explanation) | $0.0000 |
| Step 6 | (=) Exit price (before rounding) | $ 0.9441 per unit |
| Step 7 | (=) Exit Price (after rounding) | $ 0.95 per unit |
| Step 8 | Managers Rounding (d) | $ 0.005882 |