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Average Cost per Unit Calculations
Average Cost per Unit Calculations

Updated as of 04/14/2021

Exempt Edge avatar
Written by Exempt Edge
Updated over 3 years ago

Book Cost

Definition as per NI 31-103, section 1.1

The total amount paid to purchase a security, including any transaction charges related to the purchase, adjusted for reinvested distributions, returns of capital and corporate reorganizations

Transaction Types Included

Credit Transactions: Buy, Transfer-In, Historic, Drip

Debit Transactions: Sale, Redemption, Transfer-out

Distribution Transaction: Return of Capital

Calculation in Exempt Edge

Total Cost Without Fees = sum(credit transactions units * credit transaction cost per unit)

Total Return of Capital = sum(distribution transactions units * distribution transaction cost per unit)

Total Fees = sum of all fees for credit transactions

Total Markdown = sum of all markdowns for credit transactions

Total Markup = sum of all markups for credit transactions

Total Redemption Price = sum(debit transaction units * ACPU at the time of debit transaction)

Total Units = sum(credit units) - sum(debit units)

Average ACPU = 
(Total Cost Without Fees - Total Return of Capital +
Total Fees - Total Markdown + Total Markup -
Total Redemption Price) /
Total Units

Original Cost

Definition as per NI 31-103, section 1.1

The total amount paid to purchase a security, including any transaction charges related to the purchase

Transaction Types Included

Credit Transactions: Buy, Transfer-In, Historic

Debit Transactions: Sale, Redemption, Transfer-out

Calculation in Exempt Edge

Total Cost Without Fees = sum(credit transactions units * credit transaction cost per unit)

Total Fees = sum of all fees for credit transactions

Total Markdown = sum of all markdowns for credit transactions

Total Markup = sum of all markups for credit transactions

Total Redemption Price = sum(debit transaction units * ACPU at the time of debit transaction)

Total Units = sum(credit units) - sum(debit units)

Average ACPU = 
(Total Cost Without Fees +
Total Fees - Total Markdown + Total Markup -
Total Redemption Price) /
Total Units

Order of Transactions and Clock Icon

The ACPU at time of transaction is calculated using the same equation above, but for all transactions occurring before the redemption, sale, or transfer-out.

When a debit transaction is processed, the Position Cost and ACPU will immediately be updated, however, they will initially be calculated as 0, not the actual ACPU at time of transaction.

The system will determine the ACPU at time of transaction and then run through the Position Cost and ACPU calculations once more. Due to the sequence of these events, it may take several minutes before the adjusted Position Cost and ACPU are displayed.

To help our users understand when the final value has been determined, a clock icon has been added to all areas where this information is displayed. This icon symbolizes that the calculations are still underway and it will disappear once the calculations are completed. Please note that the page will not refresh itself in real-time, therefore you will have to refresh the page to determine if the calculations are completed.

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