Professional Documents
Culture Documents
CUTE Tutorial by Chapters 2021
CUTE Tutorial by Chapters 2021
• Authorized
investment 5
Unit Trust Fund Basics Terms
• Ownership of funds are in Units
• Fund Value quoted as Net Asset Value (NAV)
• NAV of Fund = Total Value of Fund in RM
– e.g. NAV of Fund A = RM100 million
= RM 100,000,000
– NAV per unit would be
400,000,000 units
= RM 0.25 per unit 6
Basic Features of
Unit Trust
Basic Features of
Unit Trust
Basic Features of
Unit Trust
Same as Q. 140
Basic Features of
Unit Trust
Benefits of Unit Trust
Diversification
Investment Exposure
Professional Management
Liquidity
Ease of Transactions
Investment Costs
Able to apply Dollar Cost Averaging
11
Benefits &
Disadvantages of UTS
Benefits &
Disadvantages of UTS
Benefits &
Disadvantages of UTS
Method of Investing
Lump Sum
Reinvestment of
Income
Regular Savings
15
Borrowing to Invest
Leveraging & gearing
• Max loan-to-valuation ratio is 67%
• UTC must not directly/ indirectly encourage sales
through loans
• Borrower must be between 18-55
Risk of Borrowing
• Interest rate fluctuation
• Default in repayment of loan
• Premature repayment of Loan
• Margin Call 16
Cooling Off Right
• Within 6 BUSINESS DAYS
• Full refund
• Given to a first time investor EXCEPT:
• a corporation or institution
• a staff of UTMC; and
• UTC
Repurchase of Units
• Unit holder has the right to withdraw from UTS any
time
• Within 10 CALENDAR DAYS
17
Methods of Investing - Lump Sum,
Regular & Loan Financing
Methods of Investing - Lump Sum,
Regular & Loan Financing
Methods of Investing - Lump Sum,
Regular & Loan Financing
Methods of Investing - Lump Sum,
Regular & Loan Financing
Deed & Prospectus
Deed & Prospectus
Deed & Prospectus
Cooling Off Period
TYPES OF UTS
Unlisted/Open-End Funds Listed/Closed-End Funds
1. Units are not quoted on a 1. Units quoted and traded on
stock exchange stock exchange
FIXED
INCOME SYARIAH
CLASSIFICATION
OF GOVERNMENT-
EQUITY
UNIT TRUST
SPONSORED
28
EQUITY UTS
Aggressive
Index Fund
Growth Fund
International
Income Fund
Fund
29
FIXED INCOME UTS
Money Corporate
Market bond
Instruments
Government
Securities
Generally provide regular income with less
emphasis on capital growth
Fixed
Income
Securities, Equities
Cash &
Property
Highly liquid & ideal for use as a short term “parking place”
32
REAL ESTATE INVESTMENT TRUSTS
Units in listed
Most are REIT can be
listed on bought and
stock
Returns- sold through
rental income exchange stockbrokers
and capital
appreciation
Invest in real
property
33
• Investment objective - to achieve same return
as a particular market index
34
Classification
of UTS
Classification of
UTS
Classification of
UTS
Classification of
UTS
Classification of
UTS
Classification of
UTS
Classification of
UTS
Classification
of UTS
Classification
of UTS
Classification of
UTS
Fees & Charges
Direct Indirect
Annual
Service Charge Management
Fee
Repurchase
Charge
Annual Trustee
Fee
Switching
Charges
Transfer
Charges
46
Management Expense Ratio (MER)
• To assess previous year’s cost of holding units
in UTS and compare it to :
– past and prospective returns,
– MER of competitor UTS, and
– costs of other investment opportunities
47
Fees and
Charges
Fees and
Charges
Fees and
Charges
Fees and
Charges
Fees and
Charges
Measuring
Performance
Unit Pricing -
Forward & Historical
NAV of Fund
• Total Fund NAV is derived from
= Total Asset Value of Fund - Total Liabilities of Fund
Liabiliti
Assets NAV
es
Other Regulators
Guidelines issued by
FIMM
Guidelines for Registration of IUTA and CUTA for the
Marketing and Distribution of Unit Trusts
Independent Custodian of
of UTMC fund
Key
Requirements
of Trustee
Creation &
Account &
Cancellation of
Audit
units
Report to unit
holders and SC
Regulatory Structure :
SC, FIMM & etc
Regulation of the
Trustee
CHAPTER 3
Equity Funds
Balanced Funds
98
FIMM
Disciplinary
Proceedings
SC Guidelines on Marketing
& Distribution of UTS
SC Guidelines on Marketing
& Distribution of UTS
SC Guidelines on Marketing
& Distribution of UTS
CHAPTER 5
107
Effect on Inflation, Tax &
Costs on Investment Return
Effect on Inflation, Tax &
Costs on Investment Return
Effect on Inflation, Tax &
Costs on Investment Return
Effect on Inflation, Tax &
Costs on Investment Return
Rule of 72
72 Years to double given
=
Given interest rate sum of money
112
Rules Of 72
Rules Of 72
Rules Of 72
Same as Q. 3
Rules Of 72
Effect of Charges to
Investment Return
Effect of Charges to
Investment Return
Effect of Charges to
Investment Return
Effect of Charges to
Investment Return
Effect of Charges to
Investment Return
CHAPTER 6
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