Costs of Investing

Front Load Service Fee.

This is a front-end fee that Unitholders have to pay. The fees normally range between 5%-10%. This charge is also known as the “spread” between the Sell Price and the Buy Price. The bulk of this fee is the agents' commission.
For example, if the spread is a 5% service charge, it means that if you applied to invest RM100,000 into a fund, RM5000 will be deducted as service charge and the balance of RM95,000 will be invested. The RM95,000 is known as the Net Asset Value (NAV).

Management fee.

This fee normally ranges from 1% - 1.5% per annum of the NAV of the Fund and is used to cover the costs of managing your investment. It is used to pay for Administrative costs as well as to pay the Investment Managers. This cost is calculated and accrued daily from the NAV of the Fund and payable monthly to the Fund Manager irregardless of the performance of the Manager.

Trustee fee.

This fee normally ranges about 0.07% per annum of the NAV of the Fund with a minimum charge of RM18,000 per annum. This fee is used to pay the Trustee for their services, which is primarily to keep watch that the fund is being managed according to the guidelines set out in the Trust Deed. This cost is also calculated daily and is deducted from the NAV of the Fund.

Fund expenses. 

This includes audit fee, tax fee and administration expenses like printing of prospectuses, interim and annual reports, distribution cheques, postage, printing and other services properly incurred in the administration of the fund. These costs are paid out of the fund’s assets.

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