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Navra Unit Prices

Discussion in 'Managed Funds & Index Funds' started by Jayar, 4th Sep, 2007.

  1. Jayar

    Jayar Well-Known Member

    Joined:
    15th Aug, 2005
    Posts:
    130
    Hi,
    Can someone explain why the Application and Redemption prices for Navra Australian funds always vary by .0034 cents on a daily basis?
    May be obvious, but not to me.:D
    Thanks,
    Jayar
     
  2. Simon Hampel

    Simon Hampel Co-founder Staff Member

    Joined:
    9th Jun, 2005
    Posts:
    4,623
    Location:
    Sydney, Australia
    Managed funds 101: Buy / Sell Spread

    To cover transaction costs for buying and redeeming units (to make it fair on the other unitholders!), managed funds calculate "spread" on the unit price to determine what price people will actually buy and redeem units at.

    For NavraInvest AUS funds, the buy price is 0.15% higher and the redeem price is 0.15% lower than the underlying unit price (it's 0.2% either side for the US fund)

    This means that the real unit price is actually half-way between the published buy and sell prices on any given day.
     
  3. Jayar

    Jayar Well-Known Member

    Joined:
    15th Aug, 2005
    Posts:
    130
    Thanks, Sim.
    Jayar