NAV, POP & Forward Pricing — Q&A

Shares are bought from and sold back to the fund issuer (not traded between investors). Redemptions may force the fund to sell portfolio securities if it lacks cash.

$100. NAV = net assets ÷ shares outstanding.

That day’s NAV (calculated after the 4:00 pm ET market close). Orders before 4:00 pm ET receive that day’s closing NAV.

At the NAV calculated Monday evening (next business day’s closing NAV).

$26.84. POP = NAV ÷ (100% − SC%) = $25.50 ÷ 95%.

5%. SC% = (POP − NAV) ÷ POP = $1.34 ÷ $26.84.

Bid = NAV (what the investor receives when selling). Ask = POP (what the investor pays when buying). Loaded funds: bought at POP, sold at NAV.

8.5% of the POP. Sales charges are based on POP, not NAV.

Reinvestment of dividends and capital gains at NAV (still taxable), and a conversion privilege within the same fund family (exchange is taxable if there is a gain).

Within seven days. A Friday redemption must be paid by the following Friday.