Understanding Charges & Fees

Initial Service Charge

The first cost that an investor incurs in relation to investing in unit trusts is the initial service charge (sometimes called the service, sales, entry, or ‘up front’ charge). This is the cost to an investor investing in unit trusts and it is levied primarily to cover the marketing and distributing units and monitoring his investments by the unit trust consultant for the duration the unit trusts is held.

 

Exit Fee

Sometimes referred as repurchase charge. This fee represents a deduction by the UTMC from the proceeds of disposal of an investor.

 

Annual Management Fee

Management expenses include expense for portfolio management, the manager’s fees, trustee and custody costs, audit fees, administrative charges like printing of annual reports, distribution cheques, postage and other services properly incurred in the administration of the fund. These costs are paid out of the fund’s assets.

Trustee Fee

Fee payable to the funds’ trustee for the provision of trustee services, including custodianship of the funds’ assets and fiduciary duties performed for the best interests of investors.