Unit Trusts are valued every business day by calculating the fund’s NAV or Net Asset Value per unit. This value is calculated by adding up the current value of all shares, debentures, trust certificates, repos, other securities and cash in its portfolio. After subtracting out certain expenses of running the fund (e.g.. Management fee, Trustee fee, Custodian fee and other operating expenses), the final figure is divided by the funds total number of units in issue to arrive at the Net Asset Value per unit.

How the current value of its underlying securities is calculated sometimes varies depending on the type of fund.

Money Market Fund and Short Term Gilt Fund

As all assets of the Money Market Fund are interest bearing securities maturing in less than 365 days, its securities are valued at cost plus accrued interest on a straight line basis. Management fees and other expenses are accrued on a daily basis.

Value Equity Fund

All equity securities are priced on the volume weighted closing price published by the ANCL (Associated Newspapers of Ceylon Limited). All corporate actions such as dividend payments are accounted for on the ex dividend date. Management fees and other other expenses are accrued on a daily basis. Repurchase Agreements and other short term fixed income securities are valued at cost plus accrued interest on a straight line basis.