Friday, July 20, 2007

Price Of Unit Trust Funds (Single Pricing)

Public Mutual buys from and sells units to unitholders during Business Days (Monday-Friday). This ensures that there will always be a market for the units.

There is a single price for the buying and selling of units of the funds which is at NAV per unit of the respective funds. Upon the purchase of units of the funds by investors, a service charge of up to 6.5% of NAV per unit is levied (equity/balanced), whilst a service charge of up to 0.25% of NAV per unit is levied (bond/money market).

Unit prices of the funds are published daily under the Unit Trusts Column in major newspapers or Public Mutual website.

-------------------------------------------------------------

Securities Commission (SC), Malaysia

1. Guidance Note 20 (15 May 2007) is published pursuant to Section 158(1) of the Securities Commission Act 1993 to notify a new policy in relation to the pricing of units of a unit trust fund currently stipulated under Chapter 11 of the Guidelines on Unit Trust Fund (Guidelines).


2. The new provisions under this Guidance Note shall take effect on 1 July 2007. From that day onwards, pricing of all unit trust funds shall be based on a single price (i.e. the Net Asset Value per unit of the fund).


-------------------------------------------------------------

Previously, the rule stated by Securities Commission, Malaysia (SC) is that every unit trust company must publish the selling and buying price for the funds available. The selling price (purchase) and buying price (repurchase) actually make investor know the price and value of their investment from time to time.
.....................................................................................
From the calculation example PAIF:
18/12/06
========
Buying price (RM) : 0.2511
Selling price (RM) : 0.2674 (investor purchase)

19/06/07
========
Buying price (RM) : 0.2987 (investor repurchase)
Selling price (RM) : 0.3181

*Buying price = NAV (RM)
*Selling price = Buying Price + 6.5%/0.25%
.....................................................................................

1 comment:

Anonymous said...

Basically for Public Mutual, the service charge for equity/balanced funds are 6.5% while bond/money market funds are 0.25%. Therefore, we should actually grab opportunity to invest whenever there's a promotional rate.

The service charge is only upon investing. Therefore, in long-term we actually benefit. We’re actually paying a very minimum fee just to have our investment monitor professionally.

1-year : 6.5%
2-year : 3.25%
3-year : 2.17%
4-year : 1.63%
5-year : 1.3%

The service charge by other unit trust company are about the same. eg. CIMB 6.5%, ING 6.5%, MAAKL 6.5%, HWANGDBS 5.5%, HLG 5.99%, PACIFIC 6.88%, etc…