Page 74 - Profile's Unit Trusts & Collective Investments - September 2025

Chapter 3 Costs and pricing

R Have costs been taken into
account? If so, exactly which
costs are excluded and which are
included in the calculation? Most
performance figures are net of
annual management fees but don’t
take into account initial charges,
broker commissions, trailer fees and
exit fees.
R Are the different figures calculated
over the same period? A fact
sheet might quote a three-year
return to the end of the last quarter
while a daily paper or website
might show a three-year return
up to the most recent trading day.

R Are you looking at absolute returns or annual returns (ie, average percentage per year)?
If the returns are average annual returns, are they compounded annual returns? The difference
between a simple annual average and annual compound returns can be significant (see the
power of compounding on page 34).
R Does the calculation include reinvestment of distributions? Are dividends reinvested, for
calculation purposes, at the ex-div price, or at the price ruling on the distribution payment date?
R In the event of large discrepancies in reported performance figures for a fund, check for
unusual stats, such as inflation-adjusted performance (sometimes called “real returns”), or
performance relative to a benchmark, or rolling period calculations.

72 Profile’s Unit Trusts & Collective Investments September 2025