Single Pricing Regime



1st July 2007

FMUTM hails the new SC’s guidelines on Single Pricing Regime (“SPR”) on unit trust investments which will come into effect on 1 July 2007. This initiative is timely as the industry is committed to working closely with the SC to continuously enhance transparency and facilitate easy understanding on unit trust investments.

The SPR is introduced to replace the current dual pricing regime where selling price and redemption price are quoted in the newspapers and sales charges are included in the selling prices. Under the SPR, there will be one price which is the net asset value (NAV) per unit and sales charges are calculated on the NAV. All these will be separately disclosed in the transaction statement.

As an example, if an investor wishes to invest RM1,000 in a unit trust fund and the NAV per unit of a fund is RM 1.00 and the sales charge is 5%, the investor would incur charges of RM 50. The amount payable by the investor is RM 1,050 and he will be issued 1,000 units. All this will be reflected in the transaction statement.

To further facilitate investors understanding of investment costs, the rates of sales charges offered by different distribution channels are listed in the prospectus. Investors will be able to compare the costs of investing in unit trusts associated with different distribution channels and the service level provided. Investors who require personalized services such as meeting them at odd hours of the day can select the distribution channel that offers such services. Of course, the fee charges will be higher for such personalized services.

FMUTM would like to stress that whether it is the dual pricing regime or the SPR, the most important factor is that investors must take the effort to better understand about unit trust investing and its pricing. Once they fully understand the mechanism, they will find that investing in unit trusts is relative simple and inexpensive. Globally, investors have relied on unit trusts to grow their wealth since most investors’ lack the time, sufficient skills and resources to undertake direct investments. Information on unit trust investing can be obtained by reading the prospectus or simply engaging one of our unit trust consultants/ distribution channels.

1st July 2007

Issued on behalf of the Federation of Malaysian Unit Trust Managers. Members of the Press requiring assistance may contact Mr. Lee Siew Hoong, Executive Director, at tel no: +(60)3 – 2093 2600 or fax no: +(60)3 – 2093 2700 or e-mail: [email protected]

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