Following on from recent strength in the Australian Dollar (AUD) against its US counterpart (USD), which saw the exchange rate increase from (AUD:USD) 0.8957 in February to 0.9247 in March, the Fund’s unit price has fallen from $1.077 (Feb 14) to $1.028 (Mar 14).
The majority of the Fund’s assets are held in USD, so exchange rate fluctuations often have a significant impact on the unit price. Units are valued monthly, so both the average monthly AUD:USD rate (on profit and loss items), and the month end AUD:USD exchange rate (on balance sheet items) are used when translating USD items into AUD.
– Steve McKnight
