Question

Calculate the unit price of the Masterproc Balanced Fund (“Masterproc “) using the following information extracted...

Calculate the unit price of the Masterproc Balanced Fund (“Masterproc “) using the following information extracted from its latest financial statements including the detail that it had 63 million units on issue at the end of the latest financial year:

                                                                         Book Value               Market Value

            Details                                               $ million                             $ million           

            Cash and deposits                                         25                                   28

            Bonds                                                              66                                   59

            Equities                                                       135                                   296

            Property                                                        100                                   112

            Trade Creditors                                              45                                   45

            Mortgage Loans                                           167                                   167

Homework Answers

Answer #1

Unit price of Balance Fund = (Assets - Liabilities) / Total number of outstanding units

Total Assets= Equities+Property+Cash and Deposits

= $(296+112+28) Million

= $436 Million

Liabilities= Bonds+Trade creditors+Mortgage loans

= $(59+45+167) Millions

= $ 271 Million

Unit price of Balance Fund = ($436-$271)Million / 63 Million

= $165 Million / 63 Million

= $ 2.62

Therefore, Unit price of Masterproc balanced fund is $2.62

Note: 1. Value of Masterproc balanced fund is calculated using Market value.  

2. Total number of outstanding units is 63 Million(Given in Question)

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