Pricing of a Portfolio Instrument

The price starts off with 1 for the first investment into the portfolio Instrument. From there on the system unitises the value in the Portfolio Instrument and automatically adjusts the price on future instructions.

Example:

First Investor Buys 1000 units @ 1 USD per unit

Market value: 1000 USD

Units: 1000

The Portfolio Instrument switches the 1000 USD into an Instrument at a price of 2.2

The price of the underlying instrument into which the Portfolio Instrument invested increases from 2.2 to 2.5

Market value: 1136.36 USD

Units: 1000

New price: 1.136360

When a new investor invest in the Portfolio Instrument, the new price will then be applicable and can also be edited

Last Updated on 6 years ago by Tinus Burger