mFund - Glossary
A
APIR code
Asia Pacific Investment Register codes. A standard, unique code to identify financial services industry products.
Application
A buy order. The process of applying to purchase managed funds from the issuer through the unit registry.
Application Price
The price of the fund units displayed upon application.
D
DRP
Distribution Reinvestment Plan - optionally, all fund distributions can be reinvested into additional fund units rather than receiving a cash distribution.
Distribution
The process of redeeming your funds for a cash or fund distribution. Distributions can be partial or full distributions.
F
Fund Code
An mFund code uniquely identifies an mFund. The mFund code consists of the issuer code as the first 3 letters, followed by a code for the fund.
Fund Manager
The entity that offers and manages a managed fund.
Fund Unit
Each managed fund is divided into individual fund units. Fund units are purchased when making an mFund application.
H
HIN
Holder Identification Number - a unique number identifying each client used to settle on CHESS.
Hold
mFunds you have purchased are referred to as mFund holdings.
M
Minimum Investment Amount
Each fund sets a minimum amount that can be invested. The minimum investment amount is stated in the fund PDS.
P
PDS
Product Disclosure Statement - a document available for each fund that includes information about the product's key features, fees, commissions, benefits, risks and the complaints handling procedure.
PISP
Product Issuer Settlement Participant
Pricing Date
The exact date a unit price is calculated.
Product Issuer
A fund manager who is also a settlement participant.
Profile
A document providing information on each fund such as performance, asset allocation, and commentary on the fund's performed over the current quarter as well as the strategy and outlook for the fund.
R
Redemption
The process of selling or redeeming an mFund for a cash distribution.
Redemption Price
The indicative price of the fund units displayed upon redemption.
S
Spread
The difference in price between the application price and redemption price of a fund.
Switch
The process of redeeming all the units of one fund and using the proceeds to purchase the units in another fund, from the same issuer, in a single market transaction.
T
TFN
Tax File Number - required to buy and sell mFunds.
U
Unit Price
The value of a fund unit after the unit has been allotted.