STSM103040 - Collectives: The Schedule 19 charge: Market value of units and OEIC shares

The market value of a unit in a unit trust or an Open-Ended Investment Company (OEIC) share means whichever the higher is of:-

  • The price the unit or OEIC share might reasonably be expected to fetch on a sale in the open market at the time of surrender; and
  • Its cancellation price or, if it is redeemed, its redemption price, at that time, calculated in accordance with the trust or OEIC instrument.

In normal circumstances, the cancellation/redemption price equates to the open market value of the units/OEIC shares.

A fund manager will typically calculate the market value of a unit/OEIC share by reference to the Net Asset Value (NAV) of the fund. The NAV is determined by valuing all of the fund바카라 사이트™s investments and cash on hand less any liabilities, then dividing the resultant total value by the number of units or OEIC shares that are in issue. Valuing units/OEIC shares is usually undertaken by a fund manager each day at a fixed time in accordance with the rules of the trust/OEIC, although the dates and timing of valuation can vary between fund providers.

The FA99/SCH19 charge applies only to units and OEIC shares which are surrendered and transferred prior to 30 March 2014. See STSM103005

See STSM101020 for the meaning of a unit trust.

See STSM101050 for the meaning of an OEIC.