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Using Hang Seng e-Banking Services - Investment Services - Investment Fund Services - Profit and loss

What is indicative profit and loss (including cash dividend) and how is it derived?

How to calculate the “unrealised profit and loss”?

The “unrealised profit/loss” is calculated starting from when?

How can I view my cash dividend history?

What does the “record date” refer to on the Cash Dividend History page?

Indicative profit and loss, unrealised profit and loss and cash dividend illustration example:

3 Jan 2021

Mr. Lee subscribed HKD45,000 amount of Fund A for the first time. The Fund was subscribed at the unit price of HKD45 for 1,000 units. As the latest unit price was same as the unit price during subscription, there was no change to the unrealised profit and loss.

10 Feb 2021

Mr. Lee received HKD2,000 cash dividend in his settlement account for his 1,000 units in Fund A. Since the latest unit price was HKD46, while the average unit price was HKD45, Mr. Lee had an unrealised profit and loss of +HKD1,000. Taking into account the HKD2,000 cash dividend he received today, he had an indicative profit and loss of +HKD3,000.

1 Mar 2021

Mr. Lee subscribed HKD24,000 amount of Fund A again. The fund was subscribed at the latest unit price of HKD48 for 500 units. The average unit price was updated to HKD46 (1,000 units were subscribed at HKD45 on 3 Jan, while 500 units were subscribed at HKD48 on 1 Mar). Since the latest unit price was HKD48, and the average unit price was HKD46, the unrealised profit and loss was +HKD3,000. Taking into account the HKD2,000 cash dividend he received previously, he had an indicative profit and loss of +HKD5,000.

15 April 2021

Mr. Lee redeemed 300 units of Fund A. There was no change to the average unit price (1,000 units were subscribed at HKD45 on 3 Jan, while 500 units were subscribed at HKD48 on 1 Mar). Since the latest unit price was HKD47, while the average unit price remained the same, the unrealised profit and loss was +HKD1,200. The cash dividend was now HKD1,600, as the cash dividend proportional to the units redeemed have been reduced (fund units redeemed in percentage: 300divided by1500 times 100% =20% and the cash dividend reduced on pro-rata basis according to the number of fund units redeemed: $2000 times 20%= $400). Hence, the indicative profit and loss was +HKD2,800.

10 July 2021

Mr. Lee subscribed HKD42,000 amount of Fund A again. The fund was subscribed at the latest unit price of HKD42 for 1,000 units. The average unit price was updated to HKD 44.18 (300 units out of 1500 units were redeemed in Apr 15 and the ledger balance is 1,200 units with previous average unit price of HKD46, while 1,000 units were subscribed at HKD42 in 10 Jul) . Since the latest unit price was HKD42, and the average unit price was HKD44.18, the unrealised profit and loss was -HKD4,796. Taking into account the HKD1,600 cash dividend he received previously, he had an indicative profit and loss of +HKD3,196.

Transaction Date	Transaction Type	Amount	Transaction Units	Ledger balance (A)	Latest Unit Price (B)	Average unit price^{1Footnote remark 1}(C)	Unrealised profit and loss^{2Footnote remark 2} (D) = (B-C) x A	Cash Dividend^{3Footnote remark 3} (E)	Indicative profit and loss^{4Footnote remark 4} (G) = (D+E)
3 Jan 2021	Subscription	HKD45,000	+1,000 units	1,000 units	HKD45	HKD45	0	0	0
10 Feb 2021	Cash Dividend Payment	HKD2,000	-	1,000 units	HKD46	HKD45 (no change)	(HKD46minusHKD45) times 1,000units = +HKD1,000	HKD2,000	HKD3,000
1 Mar 2021	Subscription	HKD24,000	+500 units	1,500 units	HKD48	[(500units times HKD48) plus (1,000units times HKD45)]divided by1,500 = HKD46	(HKD48minusHKD46) times 1,500 units = +HKD3,000	HKD2,000	HKD5,000
15 April 2021	Redemption	HKD14,100	-300 units	1,200 units	HKD47	HKD46 (no change)	(HKD47 minus HKD46) times 1,200units = +HKD1,200	HKD1,600*	HKD2,800
10 July 2021	Subscription	HKD42,000	+1,000 units	2,200 units	HKD42	[(1,200 units times HKD46)plus(1,000 units times HKD42)]divided by2,200 = HKD44.18	(HKD42 minus HKD44.18) times 2,200 units = -HKD4,796	HKD1,600 (no change)	-HKD3,196

* reduced on pro-rata basis according to the number of fund units redeemed

The average unit price, the unrealised profit/loss, the cash dividend and the indicative profit/loss (including cash dividend) are estimated figures and for general information and reference only.

Remark(s)

1

In respect of a fund, the “average unit price” is the average unit price at which the units in a fund were acquired including but not limited to by way of subscription, switching-in, transfer-in, dividend distribution in the form of units and/or merge-in. The average unit price has taken into account (if applicable) the related subscription fee, management fee, switching fee^ and redemption fee (if any). Cash dividend payment which has not been used for re-investment in the same fund, transactions which are pending settlement and the relevant stamp duty have not been taken into account.
^Concerning switching between funds provided by the same fund house, the switching fee calculation is subject to individual fund house’s arrangement. For the purpose of illustration in this record, if the fund house charges switching fee in the switching-in fund transaction, the relevant switching fee is reflected in the switching-in fund transaction but not in the switching-out fund transaction. Similarly, if the fund house charges switching fee in the switching-out fund transaction, the relevant switching fee is reflected in the switching-out fund transaction but not in the switching-in fund transaction.
2

The unrealised profit/loss is calculated as follows: (Latest unit price minus Average purchase unit price) times Ledger balance. Cash dividend payment which has not been used for re-investment in the same fund, transactions which are pending settlement, the relevant stamp duty (if any) have not been taken into account.
3

Cash Dividend refers to the cumulative amount of dividends (if any) distributed by the fund in the form of cash and credited to your settlement account as of the previous business day. “Cash Dividend ” is adjusted on pro-rata basis according to the number of fund units subscribed/ switched-in/ transferred-in and redeemed/ switched-out/ transferred-out. If you redeemed/ switched-out/ transferred-out all the units of your holdings in a fund, the cash dividends that were received before redeeming/ switching-out/ transferring-out all the units have not been taken into account. If the dividend distribution (if any) of the fund is in the form of units, relevant dividend units have not been taken into account as well. If the units in the fund were acquired by way of transfer-in, the cash dividends that were received before transferring in the units to this account have also not been taken into account.
4

The “Indicative profit/loss (including cash dividend)” is calculated as follows:

bulletCalculated in fund currency:
Unrealised profit/loss (fund currency) plus Cash dividend (fund currency)

bulletCalculated in percentage:
Indicative profit/loss (including cash dividend) divided by [Average unit price times Ledger balance]

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