Unit price – what it is
When you invest in a managed fund, your money is converted into units. Each unit has a price (the unit price). Think of it like shares in the Fund.
Why the price goes up (most days)
Through the month, the unit price slowly increases as interest that the fund has earned, on behalf of investors, builds up. We update the Fund’s unit price on weekdays around midday, so if you check before lunch and then again later, you may see a small change.
Why the price resets monthly
On the first business day of each month, we calculate and declare your distribution (your monthly return). That afternoon, you will see the value of your investment adjust down slightly. Don’t worry — this is when the fund’s unit price is reduced to reflect the distribution that will be paid to you. This pattern repeats every month.
Your returns
You can always check your returns in the Activity section of your Squirrel account.
- If you’ve elected to have your return paid out, it will arrive in your On-call account on the afternoon of the 3rd business day each month.
- If you’ve chosen to have returns capitalised, this will occur on the afternoon of the 2nd business day each month. If you want to change your distribution method, just email us at money@squirrel.co.nz.
Tax on your returns
PIE tax is paid once a year in April. We’ll email you in March with your estimated amount, and then deduct it from your balance in April. You don’t need to do anything.
- Paid out returns - you receive the gross return, with tax paid in April.
- Capitalised returns - these compound gross, giving you greater tax efficiency.
- Withdrawals - tax on earnings is deducted at the time you withdraw.
Making a withdrawal from the Fund
Withdrawals are subject to the Fund’s 30-day notice period. But in practice, we usually get your money to you much quicker — often within 7 business days of placing your redemption instruction. Once processed, your cash will land in your Squirrel On-Call account. For all the finer details, check out the Squirrel Investment Funds PDS. And if you have any questions, give us a call on 0800 21 22 30.