Page 70 - Profile's Unit Trusts & Collective Investments - March 2026

Chapter 3 Costs and pricing

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 30).
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.

68 Profile’s Unit Trusts & Collective Investments March 2026