• FUNDS 12.4.1 FUNDS 12.4.1

    (1) A Fund Manager must:
    (a) have comprehensive and well documented valuation policies and procedures in place to ensure the production of timely and accurate valuation of Fund Property;
    (b) ensure that the Fund Property is valued at regular intervals as appropriate to the nature of the Fund, market practice and investor expectations, and in accordance with the valuation procedures set out in the Fund's Constitution and/or Prospectus, except where such valuation is suspended in any circumstances that are set out in the Fund's Constitution and/or Prospectus;
    (c) prepare, or cause to be prepared, a valuation in accordance with (3) for each relevant type of Unit at each relevant valuation point; and
    (d) as soon as practicable after each valuation point, both publish and make available to the Unitholders and prospective Unitholders of the Fund, the price of the Units of the Fund.
    (2) The value of the Fund Property is the net value of the Fund Property after deducting any expenses and outstanding borrowings, including any capital outstanding on a mortgage of any Real Property.
    (3) The value of the Fund Property must, except as otherwise provided in this Chapter, be determined in accordance with the provisions of the Constitution and the Prospectus, as appropriate.
    (4) For the purposes of (2), any charges that were paid, or would be payable, on acquiring or disposing of the asset must be excluded from the value of that asset.
    (5) A Fund Manager must not make a dilution levy or dilution adjustment unless stated as permitted in the Fund's Prospectus. Such a measure must be applied in a fair manner to reduce dilution and solely for that purpose.

    • Guidance

      1. A dilution levy or adjustment means a charge of such amount or such rate as is determined by a Fund Manager of a Fund to be made for the purpose of reducing the effect of dilution, i.e., the amount of dealing costs incurred, or expected to be incurred, by a Fund Manager, to the extent that these costs may reasonably be expected to result, or to have resulted, from the acquisition or disposal of Investments by the Fund Manager as a consequence (whether or not immediate) of the increase or decrease in the cash resources of the Fund resulting from the issue or cancellation of Units over a period.
      2. Dealing costs referred to in Guidance 1 include both the costs of dealing in an Investment, professional fees incurred, or expected to be incurred, in relation to the acquisition or disposal of Real Property and, where there is a spread between the buying and selling prices of the Investment, the indirect cost resulting from the differences between those prices.