What is equalisation?
When a fund is purchased in your Vantage Fund Account, it may be purchased between payment dates. During this period the price of the fund will reflect any increased net asset value (NAV) of the fund arising from the dividend building up in this period. Therefore the fund is purchased at an inflated price. In order to compensate you for this inflated price, the fund manager will return some capital to you in the form of an equalisation payment on the same date as your first dividend payment. This return of capital is then deducted from the amount you originally invested to reflect the true cost of the purchase.
