CSR Script – Valuation of Units

Our new technology platform has resulted in a change to how we value units for the Growth and Income Fund (GIF) and the Universal Retirement Fund (URF).

As such, the buying and selling of units will now be based on the most up-to-date price when the Net Asset Value (NAV) is calculated at the end of the trading day.

Net Asset Value – NAV for short – is the term used to describe the price of a single Unit and it is calculated at the end of the trading day. We have always published the NAV of our funds in the press and on our website – it is simply the cost of an individual unit on a given day.

The GIF and URF are what is known as Floating NAV funds. This means that the NAV of a unit in these funds change daily, based on the performance of the pool of securities within the fund. As these securities are bought and sold on the local and international markets throughout the trading day, their prices will change. Once trading ends for the day, we can calculate the final NAV of that fund for that day.

Previously, the NAV used for buying and selling units in the GIF and URF was historical, meaning it was based on the NAV calculated at the end of the previous trading day.

Our new technology platform facilitates the buying and selling of units based on the NAV calculated at the end of the day on which those units were bought or sold – providing our customers with the most up-to-date unit price!

Will you be investing with cash or a cheque?

• If you want to invest with cash, including via LINX, you’ll be given a receipt for the dollar amount of your purchase. On the next working day after your transaction, we will inform you of the NAV that you bought the units at and how many units you received.
• If you’re investing with a cheque, you’ll be issued a receipt for the dollar amount of your purchase on the day you make the transaction and will be informed of the NAV and number of units after your cheque is cleared. Cheques clear in 4 working days and your investment will be reflected in your account on the 5th working day.

For ease of access to your funds, we encourage you to register for the Automated Clearing House (ACH) facility. All you need to do once registered is call us at 625-UNIT and make your request. Funds will then be transferred to an account of your choice (for example, your bank account) on the next working day, based on the most up-to-date NAV.

Are you registered for ACH? If not, would you like me to walk you through the process?

Investors who are not registered for ACH can request a cheque, which they will receive on the next working day, based on the most up-to-date NAV.

Cash repurchases will no longer be facilitated since repurchases will be based on the NAV calculated at the end of the trading day.

If you make frequent withdrawals, you may find it more convenient to open a TT Income Fund account, which comes with a Visa Debit card that can be used to withdraw cash from ATMs and also for point-of-sale purchases. Would you like to hear more about the TTIF?

The NAV has no impact on the dollar amount that you invest. You will receive a receipt at the time of purchase reflecting the dollar amount. After the NAV for that day is calculated, you will be informed via email alert of the number of units purchased and the price of the units after our systems update at the end of the day.

This information will also be recorded on your e-Statements for the respective period or via our Uon platform for those customers who are registered.

The NAV calculation only determines the number of units you will receive for your investment. For example, if you invested $550 on Monday and at the end of transactions for that day the NAV was calculated at $10 per unit, you would receive 55 units. If the NAV for Monday was calculated at $11 per unit, you would receive 50 units. So, the dollar value of your investment would remain the same – that is, $550.

There are 3 ways in which you can receive alerts for account transactions:

• You can visit any Investment Center to register for the alerts. Once registered, a transaction alert will be sent to the email address that you provided.
• Unit prices are updated daily on our website and published in the Newsday and Express newspapers.
• Transaction details will also appear on your next account statement, which you can view by signing up for our eStatements portal or via our Uon platform.

The dollar amount of your request would only be affected in the unlikely event that your account contains insufficient units to cover your request after the NAV is calculated.

For example, if you request a cheque for $500 on a Tuesday and the NAV at the end of that day is calculated at $10, you will need to have at least 50 units in your account in order to receive the full amount requested. Once you have the necessary number of units available, you will receive your funds as requested.