The NAV for TAGTF on 10/10/2016 is MYR 0.7335 per unit. The unit split happened on 11/10/2016. The NAV for TAGTF on 11/10/2016 that is post unit split became MYR 0.6092
If one has 10,000 units originally his NAV would be 10,000 x 0.7335 =
MYR 7,335.00 ====> (A)
Due to unit split of 1 units per 5, he will get 10,000/5 = 2,000 new units. The total units then became 10,000 + 2,000 = 12,000 units.
The new NAV becomes 12,000 x 0.6092 =
MYR 7,310.40.====> (B)
Now take a look at the NAV (A) & (B). From this do you see that the actual value is lebih-kurang sama aje! Although you will say the NAV has dropped, but for someone who is actually holding the unit prior to the units split; it does not seem that way.
Hence, do not be deluded that it is cheap or otherwise. The
NAV drop is engineered by the UTMC, it is not due to actual drop in its underlying asset price. In another word,
the drop in NAV is a manipulation by the UTF management company.Xuzen
p/s (IMPORTANT NOTE): Actual cheap or otherwise is not determine by the NAV face value per se. Look to its underlying asset to determine. In the absence of knowing the actual underlying asset, then look at the fund benchmark for guidance.
Haha it is a day of maths.
I would like to show my calculation too.
Actually 5 units get 1 unit is equivalent to (1 + 1/5)= 1.2 times increase in units.
If original nav is .7335, then new nav is .7335/1.2 = .61125.
But the price became .6092, there was indeed a drop of nav on that day.
Oct 28 2016, 03:48 PM
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