print page  How you earn money on your investment
1. Investing: buying units
When you invest in investment (or managed) funds, you buy units, which represent your share of the total value of the fund. The unit price changes over time as the market value of the assets in the fund rises or falls, just like shares.
The value of your investment at any time is equal to the number of units you hold, multiplied by the next unit price, less any management fees owed.
Our unit prices are calculated each Wednesday. Where Wednesday is not a business day in Victoria, they are calculated on the next business day. By processing all transactions and buying and selling assets only once a week, we are able to keep costs down.
2. Receiving distribution
As the value of the fund's investments rises or falls, the fund's unit price - and the value of your investment - changes accordingly. When funds generate income, investors are given a payment called a distribution. This distribution is your share of a particular ME Investment Fund’s income earned over the financial year.
The distribution per unit is calculated by dividing the fund’s income by the number of units within the fund. The amount available for distribution is the net income at the end of each distribution period.
Distributions are calculated annually as at 30 June, and paid to you in the months following. You can either take distributions as cash or reinvest them in the fund. Your distributions will be automatically reinvested in your chosen fund if you don't instruct ME Investment Funds to transfer the money into your nominated bank account instead.
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