3.13.5.1.2 Off-Shore Average Cost (Weighted Average Cost)

This topic provides information on off-shore average cost (weighted average cost).

Calculation of average cost for off-shore fund will be based on Net/ Gross amount. The system will calculate the average cost based on the weighted average method.

For showing the unit holder’s unit holding statement units will be mainly classified into two group as follows:

• Subscription – All Inflow transaction (including Reinvestment Transaction) excluding RSP and DRSP
• RSP – RSP and DRSP

Total cost of subscription is calculated as total sum of Gross amount of all inflow transactions excluding Regular Saving Plan (RSP).

Total cost of RSP is calculated as total sum of Gross amount of all inflow transaction of Systematic Investments.

Total Units is the sum all inflow units corresponding to Subscription or RSP

Average cost of subscription is calculated as (Total cost of subscription)/ (Total sum of Inflow units for subscription)

Average cost of RSP is calculated as (Total cost of RSP)/ (Total sum of Inflow units for RSP).

In case of Transfer without Base Cost entered, the system will consider the Gross/ Net Amount based on preference of the Transfer out Leg as cost of the Transfer In units.

The system uses Base Cost in Transfer screen to capture NAV (the cost of transferee refers to the market value stated on the tax certificate).

In case of Transfer or Fund Merger, the system will classify all Transfer In units or Switch In units as Subscription units irrespective of the out units are from Subscription or RSP.

The system will calculate the capital gain or loss for all the Outflow transactions during allocation for offshore funds only.

The client country flag PLCOMPUTE should be enabled to compute capital gain/ loss based on below unit classifications

• Pre 2009 – Lump sum
• Pre 2009 – RSP/DRSP
• Post 2009 - Lump sum
• Post 2009 - RSP/DRSP

Linked Inflow Units * (OutFlow Transaction NAV – Average Cost of that Linked Inflow Lot)

This will be happening during allocation.