Are Unit Trusts quoted / listed on Exchanges?

A property unit trust is going to reflect the market in which it invests, be that the stock market for commercial property shares, or the property market for bricks and mortar property. Valuations of property may be made infrequently. I've known of a property fund which was valued monthly.

Most unit trusts are valued every working day by taking the values of the underlying investments as quoted on the stock market. This is normally done at noon, and is the price used for transactions carried out that day, which have to be ordered before the valuation time. This is known as "forward pricing".

Another point to remeber is that Unit Trusts (and OEICs) are 'open-ended', which means that an infinite amount of units can be created (and cancelled). Therefore, the value of a unit is calculated by dividing the assets of the Trust by the number of units in circulation. (well, in principle - it is slightly more convoluted than this).

Investment Trusts (which are quoted on the stock-exchange) are 'closed-ended', which means that there are a limited number of shares in circulation. Therefore, the value of each share not only reflects the underlying value of the assets, but also the demand for the Investment Trust shares themselves - hence they trade at a 'discount' or 'premium', depending upon demand for the shares.

Have a look on Trustnet,

Neil.

Terry Harper wrote:

wrote

Really? Hehe, yeh right (not!)...

wrote

Let's see...

Wouldn't that be fun?

Tim,

I think you understood the general meaning of what I wrote. Stop trying to be so smart.

OK - very few things are 'infinite' - if I said "the number of units in circulation can expand and contract, depending upon the demand for the units", would you find this acceptable ?

I'm so very very sorry......I'll try my best not to disgrace this newsgroup again...

Neil.

Tim wrote: