How is the Net Asset Value (NAV) of a UITF calculated?

The Net Asset Value (NAV) of a Unit Investment Trust Fund (UITF) is calculated by determining the total market value of all the investments held within the fund, and then subtracting any fees, taxes, and qualified expenses associated with the management and operation of the fund. This approach provides a clear picture of the fund’s value available to investors after accounting for any costs that could impact returns.

Calculating the NAV in this manner ensures that investors receive a true representation of their holdings' worth. It reflects not only the quality and quantity of the underlying assets but also the effect of operational costs that may dilute returns. By subtracting all relevant fees and expenses, the NAV delivers a more accurate measure of what an investor would actually realize were they to liquidate their units in the UITF.

This method of calculation is standard practice in UITFs, allowing for transparent and consistent reporting of the fund's value per unit, guiding investors in their decision-making processes.