2. What is a unit?

Your contributions to a unit trust are used to purchase units. Each unit represents an equal fraction of the total value of the pool of invested money.Units in the British-American Unit Trusts are brought from the fund manager, British-American Asset Managers Limited, and sold back to them in the event unitholders need to redeem their units.


When you invest in a British-American Unit Trusts, the number of units you are allocated is calculated by dividing the amount you invest by the offer price at the time. As an example, if the offer price for each unit is Kshs 100, an investment of Kshs 250,000 will buy 2,500 units.
The value of units moves in accordance with the performance of the unit trust’s assets.

 

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