»Ê¹ÚÌåÓýapp

‘Equalisation� refers to arrangements that enable the income that existing investors receive (or have allocated to them) from a fund to be unaffected by new investors purchasing units in a fund. Such arrangements will affect the calculation of reportable income to be reported to unit holders at the end of the period in which the new units are issued.

»Ê¹ÚÌåÓýapp method by which reportable income is computed is dependent on whether the reporting fund:

• operates equalisation arrangements (see IFM12546)
• operates full equalisation arrangements (see IFM12548)
• operates no form of equalisation (see IFM12628)

A reporting fund operates equalisation arrangements or full equalisation arrangements if it has given a statement in its application for reporting fund status that it intends to operate such arrangements (see IFM12423).

If a fund operates either full equalisation or equalisation, adjustments will be made to reportable income under regulation 72 of SI 2009/3001. »Ê¹ÚÌåÓýapp difference between these two methods of operating equalisation is that an equalisation amount will be included in the report to investors where a fund operates full equalisation, whereas no equalisation amount is reported to investors where only equalisation is operated.