Unit Trust Fund Performance Indicators

In reviewing the performance of unit trust funds, an investor must be familiar with the following definitions of fund returns or performance indicators:

Total Return
The percentage change in a fund’s price (adjusted for splits and distribution paid out) for the period.

Average Annual Return
The percentage change in a fund’s price (adjusted for splits and distribution paid out) for the period devided by the number of years under review. It is used to compare unit trust returns over periods exceeding one year.

Distribution Yield
Distribution paid on unit holders out of the unit trust’s income (derived capital gian, dividend and profit income) measured as percentage of a fund price.

Performance Benchmark
The performance of any given fund is usually objectively evaluated by comparing it with the performance of an appropriate chosen benchmark.