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UNITZXCHANGE calculates a daily net asset value (NAV) of funds that consist of various types of assets. The NAV includes the assets fair market value at the end of the trading day along with the daily accrual of the fund’s income and expenses.  This NAV may be used by record keepers and trustees to facilitate trading of assets that are difficult to trade in daily recordkeeping 401(k) plans. These funds are denominated in units similar to mutual fund shares. They usually consist of an asset (or group of assets in a fund or portfolio of securities) which combines with a cash equivalent fund to facilitate trading and settling of unit trades.

 

A unique feature of unitized funds is the concept of the "Unit" which equates to a "Share" of a mutual fund. A Unit is a proportionate share of the fund, which consists of the sum total of the fund's stock and a variable cash component. Participants hold units which are priced daily. Fractional units are allowed, which facilitates employee purchases of a fixed dollar amount per pay period. A new unitized fund is usually set to begin operations with the initial unit value set at $10.00. Participants would then be issued units equal to the dollar value of their account balance divided by the NAV price of $10.00. In subsequent days, the daily valuation of the unitized fund's underlying assets will reflect the gain/loss as of the market's close thereby revaluing the NAV applicable to all participants' accounts. As participants contribute or take distributions, their daily units will increase or decrease in accordance with the dollar amount divided by the current day's NAV.


What we do:


• Provide a calculation of the Net Asset Value (NAV) for each unitized fund
• Track the trading, purchases and redemptions of units
• Provide cash and wire instructions for settlement of unit trades
• Provide a daily reconciliation of assets, income accruals and expense accruals
• Provide an investment manager window for rebalancing portfolios and allocations



Client Reporting:

• Net Asset Value Calculations
• Unit Trades
• Price History
• Unitized Fund Statements



Quality Control Reporting:

• Proof Calculation Reports
• Big Price Differences
• Price/asset change differences
• Target variance reports

 

 

Types of assets that can be unitized:

• Company Stock (with a liquidity feature added)

• Managed model portfolios

• Stable Value portfolios (single or multiple GIC's and CD's)

• Actively managed stock and bond portfolios

• Actively or passively managed ETFs as a plan investment option