Under the single pricing regime, selling and buying of units are quoted and transacted at a single price, which is at NAV per unit of the fund. The sales charge and repurchase charge (if any) that are to be levied on the purchase and sales on units by investors will not be incorporated in the quoted prices of the fund. These charges will be computed and charged separately.
Illustration 1 – Computation of sales charge
As an example:
If an investor wishes to invest RM10,000.00 in a Fund which imposes a sales charge, and if the sales charge is 5.00% of the NAV per Unit of the Fund (which is the Selling Price per Unit of the Fund or the amount actually invested in the Fund), the total amount of sales charge will be:5.00% x 10,000.00 = RM500.00
RM10,000.00 + RM500.00 = RM10,500.00 (inclusive of sales charge)
The total amount to be paid by an investor for his or her investment will therefore be:
Ilustration 2 – Computation of repurchase charge
As an example:
If an investor wishes to redeem RM10,000.00 from a Fund which imposes a repurchase charge of 1% of the NAV per Unit (which is the Repurchase Price per Unit of the Fund or the amount intended to be redeemed from the Fund), the repurchase charge will be:
1% x RM10,000.00 = RM100.00
An investor will therefore receive RM10,000 – RM100.00 = RM9,900.00 as redemption proceeds.
The repurchase charge is payable to and retained by the Manager.
FEES AND EXPENSES
The fees and expenses indirectly incurred by an investor when investing in a Fund are as follows:
The Manager is entitled to an annual management fee of the NAV of the Fund calculated and accrued on a daily basis.
The Trustee is entitled to an annual trustee fee of the NAV of the Fund calculated and accrued on a daily basis.
Illustration 3 - Calculation of Manager’s and Trustee’s fees
The following is an example of the daily computation of Manager’s and Trustee’s fees assuming an annual management fee of 1.5% and an annual trustee fee of 0.1% of the Fund’s NAV is levied :-
|Total NAV (before deducting the Manager’s and Trustee’s fees for the day) as at 31 October 2008
|Manager’s fee accrued for the day (1.5% x NAV / 365)
(1.5% X 24,236,607.68 / 365)
|Trustee’s fee accrued for the day (0.1% x NAV /365)
(0.1% X 24,236,607.68 / 365)
Other expenses directly incurred by the Fund
Operating a Fund involves a variety of expenses such as manager’s fees and trustee’s fees, custody cost, commission paid to brokers, audit fees, administrative charges such as printing of annual/interim report, tax certificates, reinvestment statements, postage and other services properly incurred in the administration of the Fund. These costs are paid out of the Fund’s assets.