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Unitisation and Return of Capital

Stocks and Shares ISA , Choosing funds for ISA's, risk factors for funds etc
Investment strategy discussions not dealt with elsewhere.
EssDeeAitch
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Unitisation and Return of Capital

#202651

Postby EssDeeAitch » February 20th, 2019, 3:04 pm

Can anyone let me know how RoC is to be treated in unitisation calculations if at all? Many thanks

Alaric
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Re: Unitisation and Return of Capital

#202659

Postby Alaric » February 20th, 2019, 3:26 pm

EssDeeAitch wrote:Can anyone let me know how RoC is to be treated in unitisation calculations if at all?


If you regard the proceeds as part of the investments, then nothing, provided you add the cash to the value in the unit price calculation. If you regard the proceeds as no longer part of the value, you treat it either as a "special dividend", if you are using Income units, or as a part disposal reducing the number of units.

EssDeeAitch
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Re: Unitisation and Return of Capital

#202660

Postby EssDeeAitch » February 20th, 2019, 3:39 pm

Alaric wrote:
EssDeeAitch wrote:Can anyone let me know how RoC is to be treated in unitisation calculations if at all?


If you regard the proceeds as part of the investments, then nothing, provided you add the cash to the value in the unit price calculation. If you regard the proceeds as no longer part of the value, you treat it either as a "special dividend", if you are using Income units, or as a part disposal reducing the number of units.


Got it, thanks Alaric. I have reduced the number of units


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