Versa Invest offers unit trust funds where users purchase the funds in the form of units, instead of value. It works in a forward pricing manner.
Forward pricing applies to open-end mutual funds, where transactions are not based on real-time pricing. Instead, investors trade at the fund's next calculated price, determined after receiving their order. This ensures transactions reflect the current value, rather than a previous Net Asset Value (NAV).
AHAM Capital Management usually updates the effective Net Asset Value (NAV) of the particular day after 1 - 2 working days and processes all transactions according to their standard operating procedures (SOP). It's important to note that Versa does not have control over the fluctuation of the NAV.
When users request a cash out or a switch out, the applied and effective units will be constant.
However, the NAV may still fluctuate. Hence, the applied NAV and the effective NAV may be different, which may lead to a discrepancy in the final cash out amount.
If the applied NAV is lower than the effective NAV (NAV increases), there will be a rise in the transaction amount.
For example, on 09 Apr 2024, you switch out MYR 80,090.57 from Versa Global-i to Versa Growth. Versa Global-i applied NAV was 0.4977 and the applied unit was 160921.38.
When AHAM processed your switch request, there is an increase in Versa Global-i's NAV, which forms the effective NAV. The effective NAV of 0.499 will be used to determine the cash out amount, while holding the 160921.38 units constant (effective units). Eventually, you received MYR 80,299.77. You gained an additional MYR209.20.
Therefore, the transaction amount when the NAV increases is more than the requested amount.
and vice versa,
If the applied NAV is higher than the effective NAV (NAV decreases), there will be a drop in the transaction amount.
For example, on 09 Apr 2024, you switch out from Versa Growth to Versa Cash. Versa Growth's applied NAV was 0.4977 and the applied unit was 160921.38.
When AHAM processed your switch request, there was a decline in Versa Growth NAV, which forms the effective NAV. The effective NAV of 0.4970 will be used to determine the cash out amount, while holding the 160921.38 units constant (effective units).
Therefore, the transaction amount when the NAV decline is less than the requested amount.
Kindly refer to the visualizations below for example calculations: