Why is the cost figure slightly less than the amount I invested? What is equalisation?
The original cost figure for your fund holdings may be affected by a process called equalisation.
An equalisation payment occurs when you purchase a fund between the previous and next dividend payment date. When this occurs, part of the next dividend has already accrued in the price you paid for the units. As a result, when you bought the units you had in fact paid for part of the dividend. This portion is identified within the next dividend as equalisation and is regarded as a return of capital. This amount is taken off the original total investment cost to show the true cost you paid for the units; i.e. the original unit price less the dividend portion of that price. As a result the investment cost shown for your fund has now reduced by the amount of the equalisation.
If you hold the income class of the fund you will notice that equalisation will be credited to your income account as cash. If you hold the accumulation class, you will not receive a cash distribution. Rather the equalisation will be rolled up in the value of your accumulation units.