What is Participation Unit?
A Mutual Fund in the form of a Collective Investment Contract pools funds by issuing Participation Units to Unit Holders.
Participation Units are the measurement units indicating the proportional interest of each Unit Holder in the collective investment portfolio. Therefore, Participation Units serve as evidence of a Unit Holder's participation in a Mutual Fund in the form of a Collective Investment Contract.
The Custodian Bank will issue a Confirmation Letter of Unit Participation Transactions which contains the amount of Participation Units held by each Unit Holder and serves as evidence of ownership of Mutual Fund Participation Units.