A fund structure where investors buy and sell units of the fund, with the value of each unit being based on the fund’s NAV.
An investment pool that packages fluctuating net asset value into notional units, giving each participant a transparent slice of an ever-shifting pie. Insurance-linked wrappers, corporate savings-plan options, and pension default funds often use the structure to streamline administration: contributions buy units at the prevailing valuation point, redemptions burn them. Underlying assets may span mutual funds, segregated mandates, derivatives overlays, or direct securities, yet holder statements simplify the complexity into unit counts and unit prices.
Daily valuation hinges on the same hierarchy that governs classic open-ended funds—observable markets first, model estimates next—while unitization mechanics handle cash drag and capital gains so no investor subsidizes another’s timing.
