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Modified NAV Computation

As per IRDA Circulars ref: IRDA/F&I/CIR/INV/173/08/2011 dated July 29, 2011 and IRDA/F&I/CIR/INV/187/08/2011 dated August 17, 2011, computation of Net Asset Value stands modified with effect from August 18, 2011, as below:

The unit pricing (Calculation of the NAV) shall be based on whether the Company is purchasing (Appropriation Price) or Selling (Expropriation Price) the assets in order to meet the day-to-day transaction of Unit allocations and Unit redemptions.

NAV will be based on the Appropriation Price when the concerned Fund is expanding and on the Expropriation Price when the Fund is contracting.

The Appropriation Price formula is defined as follows:

Market Value of the Investments held by the Fund plus the expenses incurred in the purchase of the assets plus the value of any current assets plus any accrued income net of Fund Management Charges less the Value of any current liabilities less provisions, if any] divided by the number of Units outstanding in the Fund (before new Units allocated).

The Expropriation Price formula is defined as follows:

Market Value of the Investments held by the Fund less the expenses incurred in the sale of the assets plus the value of any current assets plus any accrued income net of Fund Management Charges less the Value of any current liabilities less provisions, if any] divided by the number of Units outstanding in the Fund (before any Units are redeemed)

The NAV of the Segregated FUND [SFIN] shall be computed as:

Market Value of investment held by the fund plus the Value of Current Assets less the Value of Current Liabilities & Provisions, if any, divided by the Number of Units existing on Valuation Date (Before Creation divided by the redemption of Units).

The policy document shall stand modified to this extent.

Further, it may be noted that due to the compliance of the above circular, there would be no change in the number of units standing to the credit of the policyholder(s).

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