Unit prices not equal to NAV
I have a retirement account that uses "units," not shares for the mutual funds I hold. The downloaded prices in Quicken don't match the unit prices on my statement.
Here is what the company says about the unit values:
" The unit value ("UV") of the funds within our products will not precisely match the net asset value (“NAV”) of the corresponding underlying mutual fund for two primary reasons - First, at the fund's inception (within the program), we may have assigned the initial UV at a price different than the NAV of the corresponding underlying mutual fund. Note that regardless of how the fund's initial UV was priced within the program, the participant owns units, not shares so if the UV is lower than the NAV, they would receive more units than they would have received in shares had they purchased an identical amount in the actual underlying fund (and vice versa if the UV was higher than the NAV). The second reason the UV will not match the NAV is the fees/expenses associated with the program. The unit values within the program, on a daily basis, pass through the underlying fund’s performance, less the asset based fee associated with the program. In other words, although the UV for the funds won’t match the underlying fund’s NAV, the only difference in the daily percentage change of the two will be the daily asset based fee associated with the program on the UV."
Here's an example, on June 30 VFIAX, Vanguard 500 Index Fund Admiral Shares were $396.66 (share price) vs $393.464 (unit price). I enter units, not shares since I own units. Perhaps, I should have been entering shares. Then Quicken would multiply the NAV price times the shares. It would be a pain to go back an correct for the last couple of years
I want to be able to track performance correctly over time, so I need to figure out how to do this correctly. Maybe I need a monthly correction?
