1. Which of the following is/are considered as liquid asset(s) in a unit trust fund? 8.

8. Which of the following statements are valid?

I. Cagamas Bond I. The management company must repurchase units at the repurchase price upon proper
II. Malaysian Government Securities request of a unit holder.
III. Bankers Acceptance II. The management company must pay the unit holder only in cash for the repurchase
IV. Negotiable Certificate of Deposits of units.
A. I B. II C. III, IV D. All of the above III. The repurchase price of units is equal to the net asset value per unit in the scheme
less the repurchase charge (if any)
2. The agency structure of the unit trust industry must not exceed ___________ tier. IV. The valuation of the scheme and the determination of the selling and repurchase
A. 3 B. 4 C. 5 D. 6 prices for units must be carried out at least once each business day.
A. I, II B. II, III C. I, II, III D. All of the above
3. Which of the following are the benefits of an effective financial planning?
I. It helps to fight against the inroads of inflation 9. Unit trust fund managers are required to provide regular reports and commentary to
II. It provides a roadmap of an individual financial objective unitholders. The report should include the following, except :-
III. It gives an individual “peace of mind” in regard to financial situation A. Description of the scheme and its investment objectives.
IV. It helps an individual to accumulate wealth B. The scheme's asset allocation as at the date of the report and particulars of significant
A. I,II B. I, III C. I, III, IV D. All of the above changes in asset allocation since the last report.
C. Analysis of the performance of the scheme
4. Certain basic steps must be undertaken in order to formulate a suitable financial plan. D. Profile of the investors who have invested in the scheme
Which of the following are the steps in implementing a financial plan?
I. establish financial goal 10. In general, which of the following has the highest risk?
II. prepare current balance sheet and statement of income A. Unit trust B. Financial future C. Share D. Bond
III. Project future earnings
IV. asses tolerance of risk 11. According to the Guidelines On Unit Trust Funds, the exposure of the unit trust fund's
A. I, II B. I, III C. I, III, IV D. All of the above holding of the securities, and securities relating to, any group of companies must not exceed
______ of fund's net asset value.
5. What are the minimum standards for registration of persons who sell unit trusts? A. 10 % B. 15% C. 20 % D. None of the above
I. must be at minimum age of 21
II. must possess at least grade 3 of Sijil Pelajaran Malaysia or its equivalent 12. According to the Guideline On Unit Trust Funds, a unit trust fund may invest in ____ up to
III. Must not have been convicted for any criminal offense 10% of its net asset value.
IV. must pass the pre-registration examination I. Unlisted securities of a Malaysian issuer
A. I, II B. I, II, III C. II, III, IV D. All of the above II. Share capital of any single issuer
III. Collective investment scheme
6. Puan Mahani, age 32, would like to divert some of her investment to private unit trust IV. Financial future (for hedging purpose only)
funds. She wants to invest in a fund that abides by the principles of her religion because she A. II B. Ii, III C. I, II, III D. All of the above
would not want returns from 'non-halal earnings. Which of the following funds will meet
the investment requirement of Puan Mahani? 13. Which f the following statements is valid?
A. Income Fund B. Growth Fund C. Balanced Fund D. Islamic Fund A. The daily selling and repurchase prices for units are to be determined by the
management company
7. Since _____, EPF contributors are allowed to withdraw part of their money from their B. The management companies are not allowed to impose more than 10 % of s.charge.
retirement account to invest in approved fund management company. C. The initial offer period of a unit trust fund must not exceed 30 days
A. 1994 B. 1995 C. 1996 D. 1997 D. The proceeds of redemption must be paid to the unitholder within 14 days according
to the Guidelines On Unit Trust Funds.

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14. __________ is an institution approved by the Minister of Trade under the Companies Act D. The number of units in circulation will be decreased
1965. Their role is to ensure that the management company adheres to the conditions laid
down in the trust deed and where necessary to protect the unitholder's interest. 22. What is the main investment objective of the Islamic Unit Trust Funds?
A. Securities Commission B. FMUTM C. Trustee D. Bank Negara A. To match the investment returns of non-interest banking products and Takaful
insurance
15. Which of the following shall be disclosed in the prospectus? B. To provide an investment opportunity for the Muslim investors to access to
I. the management fees conventional banking, insurance and financial services and products.
II. the trustee fee C. To generate consistent income, thus allowing the unitholders to pay for their zakat
III. The initial service charge D. to invest in accordance to the Syariah Principles.
IV. notice of cooling-off period
A. I, II B. I, II, III C. I, II, IV D. All of the above 23. Which of the following statement is about investment returns is not valid?
A. Raw return - The total return achieved by holding the investment over the entire
16. According to the Guidelines On Unit Trust Funds, the investment in foreign securities is period
subject to ________ of its net asset value. B. Annualized Return – The average annual return achieved by the investment over the
A. 10 % B. 15 % C. 20 % D. None of the above holding period
C. Total Return – The average annual return achieved by the investment over the
17. An investor has RM 200,000 and wants to know how long it would take to double his holding period
money at the earning rate of 7.5% p.a. Please apply Rule 72 to calculate the duration needed D. None of the above
:
A. 1.2 years B. 2.4 years C. 4.8 years D. 9.6 years 24. In general, which of the following has the lowest risk?
A. Unit trust B. Fixed deposit C. Shares D. Property
18. What is the rate of return you should look for in order for your investment of RM 40,000 to
double in 5 years? 25. The Malaysian Unit Trust Fund Performance table compiled by Micropal highlights a few
A. 5.2% p.a. B. 7.2% p.a C. 14.4% p.a. D. 28.8% p.a. areas of concern which include :-
I. Rate of returns II. Ranking
19. Which of the following is not the duty of the management company? III. NAV IV. Selling & repurchase price
A. To maintain an accurate register of unitholders with information such as addresses, A. I, II B. I, III C. II, III D. All of the above
date of sales and purchase and nationality of unitholders
B. To keep adequate according records in relation to its operations and the investment 26. Which of the following are expenses of a unit trust scheme?
operations I. Management fees & Trustee fees
C. To keep trustee informed of any investments or disposals which the management II. Auditor fees
company undertakes III. Cost of sending out reports to unitholders
D. To appoint an approved company auditor for the fund IV. Cost of issuing dividend warrant
20. A management company must first obtain and maintain a license from the ____ before it A. I, II, III B. I, II, IV C. I, III, IV D. All of the above
can operate in the public domain.
A. Securities Commission B. Bank Negara C. FMUTM D. KLSE 27. The main duty of the trustee is to protect the interest of the unitholder. If the trustee were to
discover the operation of the fund manager does not comply with the terms and conditions
21. Which of the following statement is valid in regards to the declaration of units splits of a stipulated in the trust deed, the trustee must then report to
unit trust fund? A. Securities Commission (SC)
A. The NAV of the unit trust fund will be increased B. Ministry of Domestic Trade & Consumer Affair
B. The NAV of the unit trust fund will be decreased C. Unitholders
C. The number of units in circulation will be increased D. Ministry of Finance

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28. A unit trust scheme must appoint an investment committee in which the role of the 34. The main duty of fund managers is to manage the assets of the scheme. Where do they
investment committee of the scheme is : obtain resources for their operation expenses?
A. to formulate, implement and monitor the investment managerial policies of the A. Initial service charge
scheme B. Profit sharing based on the income generated from the investment portfolio
B. to pool resources together in order to meet the request for redemption C. Management fee
C. to formulate the rules and regulations of the unit trust industry D. Rebate and soft commission obtained from stock brokers
D. to advise the Syariah Committee on how to invest in stock market
35. The investment of unit trust scheme in any class of security of any issuer not exceed ____
29. One of the unit trust fund feature is of the security issued.
A. When the interest rates increase, the return from unit trust will also increase A. 10 % B. 15% C. 20% D. No limit
B. The unitholder do not have to look for buyer when they want to liquidate their 36. The first unit trust was established in ____________
investment as the fund manager must repurchase from its unitholders. A. U.K. B. USA C. Germany D. Australia
C. Lump sum investment is generally less risky than dollar cost averaging investment
method 37. When was the first Malaysian unit trust launched?
D. An index fund serves as a benchmark for all the unit trust funds A. 1953 B. 1959 C. 1960 D. 1969

30. For the period of 1 January 1998 to 31 December 1998, the expenses incurred by the fund 38. A unit trust scheme consists of three parties. They are :-
were : A. Unitholders, Management Company and the bank
Management fee : RM 35,000.00 B. Unitholders, Management Company and Trustee
Trustee fee : RM 8,000.00 C. Unitholders, Trustee and the bank
Auditor fee : RM 2,000.00 D. Unitholders, Trustee and Distributors
Bank charges & others : RM 5,000.00
The average fund size is RM 10,000,000.00. Please calculate the 39. Choose the correct statement :-
Management Expenses Ratio (MER) I. The main objective of a balanced fund is to build capital and provide some income
A. 0.5% B. 1% C. 1.3% D. 2% from balanced mix of investment
II. The primary objective of a growth fund is growth of capital
31. The positive effect of long term investment can be seen when III. Income fund seeks the lowest possible current income
A. An investment's return is adjusted for taxes IV. Islamic fund is a trust scheme which invests in accordance with Syariah principles
B. The unitholders understand what they have bought and that meets their investment A. I, II, III B. II, III, IV C. I, II, IV D. All the above
objectives
C. The stock market is moving towards bear market 40. The role of a Fund Manager includes the following, except :-
D. Inflation erodes the purchasing power of the investors A. Prepare all notices and reports to be issued to unitholders
B. Arranges for audit of the trust's accounts
32. As per requirement, the annual report of the scheme should include C. Acts as the custodian of the fund
I. Manager's report II. Trustee's report D. Promotes the unit trust scheme
III. Statement of assets and liabilities IV. Auditor's report
A. I, II B. I, III C. I, II, III D. All of the above 41. The trustee :-
I. is an independent company approved by the ministry
33. Which of the following is/are the benefit(s) of unit trust? II. ensure that all the terms of the Trust Deed are followed
A. Ready access to funds B. Spread of risk III. Appoint the independent auditor for the fund
C. Reduce the cost of investment D. All of the above IV. is the custodian for the fund
A. I, II, III B. I, II, IV C. I, II, III, IV D. None of the above

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42. New investors are entitled to a cooling-off period of ___ business days. A. Securities Commission and Bank Negara B. Trustee and Manager
A. 6 B. 7 C. 14 D. 16 C. Trustee and Securities Commission D. Manager and Securities Commission

43. Which party ensures that the Trust Deed is complied with ? 51. Unitholders are given the right, within six (6) business days of payment of money by them
A. Trustee B. Manager C. Unitholders D. Securities Commission for investment to call for withdrawal of the investment without the deductions being made
for service and other fees. What is the therm called?
44. How is the buying price determined? A. Repurchase compliance period B. Redemption of units period
A. At the discretion of the Management Company C. Cooling-off period D. Interest free period
B. By demand and supply
C. By dividing the total value of the fund with the units in circulation and adjusted for 52. Which of the following legislation applies to the unit trust?
redemption changes (if any) I. Securities Industry Act 1983
D. By dividing the net asset value of the fund with the units in circulation II. Securities Commission Act 1993
III. Trustee Act 1949
45. If the buying price of a unit is RM 1.12 and the selling price of the unit is RM 1.17. How IV. Management Companies Act 1989
much does Mr. X have to pay if he wishes to purchase 500 units? A. I,II, III B. I, III, IV C. II, III, IV D. all the above
A. RM 427.00 B. RM 585.00 C. RM 446.00 D. RM 560.00
53. What are the advantages of pooled investment vehicles?
46. The manager should not hold more than _____ of the total units of the unit trust fund in I. Investment risk is spread
circulation at any time. II. Access to professional investment managers
A. 10% B. 20% C. 25% D. 30% III. Savings in administration
IV. More readily realized than directly held investments
47. The manager :- A. I, II, III B. I, II, IV C. II, III, IV D. all the above
I. must be incorporate in Malaysia
II. can also be the trustee of a fund 54. A person that authorises another person to act on his/her behalf is called:
III. Should be a subsidiary of a financial services institution or of any other institution A. Change of name B. Power of attorney
approved by the Securities Commission C. Trust account D. Deceases holder of units
IV. should appoint an independent auditor to the fund
A. I, IV B. I, III C. II, III, IV D. all the above 55. Which of the below best describes the Growth Fund?
A. It is the most conservative unit trust fund
48. The legal document that sets out the obligations and rights of the trustee, manager and B. It seeks the highest possible current income
unitholders is called :- C. The primary objective of the fund is growth of capital and the fund is therefore more
A. Certificate B. Prospectus C. Trust Deed D. Agreement volatile
D. It seeks the lowest possible capital appreciation
49. This company is established under the Companies Act 1965. The trustee may, from time to
time, if it deems appropriate, remove this company and appoint another in its place. Which 56. Unit Trusts which invest in shares are meant for investment horizon of :-
of the companies stated below fits this description? A. Short to long term B. Short to medium term
A. Registrar of Companies C. Medium to long term D. Medium term
B. Management Company
C. Securities Commission 57. In an open-ended unit trust, buying and selling is done
D. Bank Negara A. through the managers of the fund B. through the stock exchange
C. trough the trustee of the fund D. through the brokers
50. The Trust Deed is to set out the formula to calculate the fees payable to :-

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58. The advantages of Regular Savings Plan in Unit Trust investment is :- I. Do not borrow for its operation capital
A. Involving a large initial capital II. Do not take loan for its investment when its fund is insufficient
B. A disciplined & useful way to accumulate capital for future need III. The liquid asset should be at least 15% of its NAV
C. Earn more interest A. I B. I, II C. II, III D. All the above
D. None of the above
66. The prospectus of a unit trust fund should include the following information :-
59. What is the risk factor of Financial Investment in Unit Trust? I. The objectives, charges and expenses of the fund
A. The return from unit trust is higher than the loan interest II. The benefits of investment
B. The leveraging effect may give rise to the possibility of investors earning greater III. Annual report
returns than what could have been achieved if they use only their own capital IV. Guarantee of return
C. There will be margin call if the Net Asset Value (NAV) is heading down yet the A. I, II, III B. I, II C. II, IV D. all of the above
liability is increasing
D. All of the above 67. Which of the following is not the purpose of the unit trust fund guidelines?
A. Provide structures and regulations for unit trust industry
60. Who is NOT allowed to register as unit trust holder? B. Ascertain above average returns for the unit trust holder
A. Individual B. Institutions & Association C. Safeguard the benefits of the investor
C. Corporation D. None of the above D. Facilitate the disciplinary development of the unit trust industry

61. The basic requirement for investment for investment with EPF fund is :- 68. What are the returns for unit trust investment?
A. 20% of the balance of fund in excess of RM 50,000.00 in AC 1 I. Presents
B. The total fund in Account 1 II. Dividend
C. 80% of the balance of fund in excess of RM 50,000.00 in AC 1 III. Bonus Issue
D. The total fund in Account 2 IV. Assets
A. I, II B. I, III C. II, III D. III, IV
62. The following is not the characteristic of an open-ended unit trust fund
A. The units are not listed and traded on stock exchange 69. The Assets of the fund is registered under :-
B. The unit price fluctuates throughout the day A. Bank Negara B. Trust Deed C. Trustee D. Fund Manager
C. The calculation of unit price is based on the Net Asset Value (NAV)
D. The fund manager guarantees the repurchase of the units are prevailing unit price 70. Portfolio management for unit trust fund comprises of?
I. Adopting investment strategy
63. Which of the following description is incorrect? II. Selecting Assets
A. Unit Trust investment in United States began after World War I III. Establishing investment objectives
B. Open-ended fund is also known as “Trust Fund” IV. Assessing investment performance
C. Permodalan Nasional Berhad (PNB) is the first trust management company in A. I, II, III B. I, II, IV C. II, III, IV D. all the above
Malaysia
D. The first unit trust management company in Malaysia was formed in 1959 71. The objective of the Acts imposing on the unit trust industry is to safeguard :-
A. Trustee's benefits
64. The minimum liquid asset of a unit trust fund should be maintained at ____ of its Net Asset B. Fund management company's benefits
Value C. Securities Commission benefits
A. 5% B. No minimum limit C. 15% D. 20% D. Unitholder's benefits

65. The following investment constrains should be strictly adhered to by a unit trust fund:

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72. Trust Deed is based on the agreement between :- 80. All guidelines on distributing unit trust must be observed, except
I. Unitholder A. Marketing or distribution of units without a prospectus is prohibited by regulations
II. Management Company B. A registered person always conduct his dealings with every care, skill and diligence
III. Trustee C. A registered person must only use the advertisements and/or promotional materials
IV. FMUTM that have been approved by FMUTM
A. I, II, III B. I, III C. II, IV D. all the above D. A registered person should take every precaution to protect and preserve the
73. For the selling of units, the unit price would be fixed according to the _____. confidentiality of investor information communicated to him
A. Trustee Act B. Trust Deed C. Annual Report D. Half Yearly Report

74. The most appropriate fund for an investor who is capable of high risk profile and expect a
long term capital gain with income as secondary is :-
A. Growth Fund B. Bond Fund C. Balanced Fund D. Income Fund

75. Who is the regulatory body for unit trust funds in Malaysia?
A. Securities Commission
B. The registrar of Companies
C. Bank Negara Malaysia
D. Federation of Malaysian Unit Trust Manager's

76. Unit trusts in Malaysia are allowed to invest in the following, except :-
A. Securities Commission B. Government Securities
C. Properties D. Money Market

77. As the unit trust market becomes more competitive, which will be the best way to create
more sources of prospects?
A. Send more leaflets and brouchers to individual companies
B. Set up more branches
C. Advertise more frequently in the newspaper
D. Provide superior service to the existing customers, as the new business comes from
repeat business or through the network of existing satisfied, happy customers

78. The fund manager of the unit trust scheme is allowed to charge management fee
A. It is mainly to cover the management expenses incurred by the manager in managing
the funds
B. It is also known as advisory fee charged by the trustee
C. This is the levied by the manager on the investors to cover the commissions paid to
the agents
D. The fee is used to register the unitholders with the trustee

79. The first set of Guidelines on Loan Financing was issued on

A. 30 November 1994 B. 30 November 1995
C. 30 November 1996 D. 30 November 1997

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