What relationship exists between NAVPU and NAV?

NAVPU stands for Net Asset Value Per Unit, while NAV refers to Net Asset Value, which is the total value of a fund's assets minus its liabilities. The relationship between these two is that NAVPU is derived from NAV. NAV is the total value of the investment fund, and when you divide this total by the number of outstanding units held by investors, you arrive at NAVPU.

When the NAV is calculated and then divided by the total number of units, you can indeed find scenarios where NAVPU can equal NAV, particularly in cases where there is only one unit outstanding. However, in most typical cases, NAVPU shows how much each unit is worth. This means their relationship is directly linked through the calculation of NAVPU from NAV, making it entirely possible for NAVPU to equal NAV under specific circumstances.

Understanding this relationship is crucial for investors as it helps them assess the value of their investments in a UITF, which is often compared to the market price of the units.