Unit Trust Examination Mock Questions

Unit Trust Examination MOCK Questions

For the purpose of training only

1

Contents :

pages

SET A

3

SET B

15

SET C

23

SET D

30

SET E

33

SET F

39

Questions – by capte!s

"5


2

#$C% Q&EST'$(S : SET A

1. The Federation of Unit Trust Managers was formed in a $ & d

!ugust 1" 1""# !ugust 1" 1""% 'eptem$e m$er 1" 1""% 'ep 'eptem$ tem$er er1" 1""( "(

#. The duration for in)esting in e*uity funds is ideally a $ & d

'hor 'hortt ter term m to to med mediu ium m ter term m 'hor 'hortt ter term m to to lon long g ter term m Medi Medium um term term to long long term term Undefined

%. +hat is swit&hing, a $ & d

Trans Transfer fer of of units units from from one fund fund to to anothe another r Trans Transfer fer of of funds funds from from one one a&&oun a&&ountt to anoth another er Trans Transfer fer of of funds funds from from indi) indi)idu idual al to -oin -ointt a&&oun a&&ountt !ll !ll of the the a$o a$o)e )e

(. +hi&h of the following $est des&ri$es an aggressi)e growth fund a $ & d

t in) in)es ests ts main mainly ly in in e*uit e*uities ies t is is manag managed ed $y $y an aggres aggressi)e si)e fund fund manag manager er t in)e in)est sts s main mainly ly in $ond $onds s t alw alway ays s dist distri ri$u $ute tes s in&o in&ome me

/. Under whose name would the assets and in)estments of a unit trust s&heme $e registered, a $ & d

Trustee UTMC n)estor 'to& 'to&0 0$r $ro0 o0in ing g hou house se

2. The 3rospe&tus has to $e renewed e)ery 4 a $ & d 5.

2 months 1 year # years % years

UTMC uses forward pri&ing method when &omputing the the selling and and repur&hase pri&es. !ssuming at "4%6 a.m. today7 the 8!9 of the fund was :M 1;676667666.66 and unitsinissue was #6676667666. !t the end of the day the 8!9 has in&reased to :M 1"676667666.66 and unitsinissue un&hanged. f a &ustomer wants to redeem today7 how mu&h is the repur&hase pri&e per unit if no repur&hase fee is &harged and the repur&hase pri&e is at 8!9

3

;.

!n in)estor has $een in)esting using the dollar &ost a)eraging &on&ept. Cal&ulate the a)erage &ost per unit with the following information gi)en >nearest &ent4 ?ate of 3ur&hase

3ri&e

!mount in)ested

@an #66(

:M 6.#6

1666

Fe$ #66(

:M 6.%6

1666

Mar&h #66(

:M 6.(6

1666

a :M6.#6 & :M6.(6

$ :M6.%6 d none of the a$o)e

". ! unit trust listed on the sto&0 ex&hange is &ommonly 0nown as a $ & d

openended uni)ersal trust &losed ended regional trust

16. Ai0e all finan&ial in)estment produ&t7 it is important for the industry to $e regulated in order to prote&t in)esting pu$li&. +hi&h of the following is 8OT an authority in)ol)ed in a unit trust s&heme, a $ & d

B8M nstitut Ban0Ban0 Malaysia Ministry of Finan&e 'C

11. !n in)estor who in)ests in unit trusts with $orrowed money from the $an0 must a $ & d

Maintain an a&&ount with the $an0 until the loan is settled !pply for 166  loan finan&ing Ensure that the returns for the unit trusts are guaranteed !ll of the a$o)e

1#. +hi&h is the most important $enefit you will get with a di)ersified portfolio that in&ludes sto&0s7 $onds and money mar0et funds, a $ & d

Digher returns than you get with a portfolio that is not di)ersified The a$ility to $alan&e $oth ris0 and return in a&hie)ing your finan&ial goals ! guarantee that your portfolio will not suffer if the sto&0 mar0et falls !ll of the a$o)e

1%. +hat is the main role of a 3erson ?ealing in Unit Trusts >3?UT in the mar0eting and distri$ution of unit trusts, a $ & d

To earn as mu&h &ommission as possi$le To sell unit trusts without understanding the the fee stru&ture and produ&t features To understand and explain the stru&ture and type of funds To meet sales target

1(. ! registered 3?UT must o$ser)e the standards of professional &ondu&t whi&h in&ludes 4  !&ting with due Care7 '0ill and ?iligen&e  Confidentiality of Communi&ations and Transa&tions  Complian&e with :ules and :egulations 9. Use of !uthoriation Card


4

a $ & d

 only    only   9 only 7 7   9

1/. Customer ! in)ests in a oneoff in)estment of :M167666. Customer B in)ests :M%66 e)ery month. The a$o)e ways of in)estment are &alled 4 a $ & d

Aump sum in)estment Onestop in)estment :egular sa)ings in)estment Aump sum  regular sa)ings in)estment

12. ! family spent :M#/7666 last year for expenses and :M#271#/ this year for the same purpose. !ssuming inflation rate is the same7 how mu&h would they spend next year, a $ & d

:M #271#/ :M #/7666 :M #57%66 8one of the a$o)e

15. Cal&ulate the ME: with the information $elow nitial n)estment nitial Charges Management Fees Trustee Fees Fund 'ie !uditorGs Fee Ban0 Charges :ate of return per annum a 6.(%

$ 1.16

:M/7666 / :M#/7666 :M/666 :M%76667666 :M17666 :M#7666 1/ & 6."%

d 1.#5

1;. The 8!9 &umdi)idend for a unit trust fund is :M ;676667666. Unitsinissue is 1/676667666. f the di)idend de&lared is 5sen per unit and the fund manager is &harging a / initial ser)i&e &harge7 how mu&h is the selling pri&e exdi)idend, a $ & d

=6.(; =6.(/ =6./% =6./2

1". +hi&h of the following go)ern the operations of unit trusts, a $ & d

Huidelines on Unit Trusts Trust ?eed 'e&urities Commission !&t 1""% !ll of the a$o)e

#6. +hi&h of the following affe&ts the effe&ti)e rate of return, a $ & d

Hearing Taxation nflation !ll of the a$o)e

#1. +hat do you mean $y the term I&oolingoffJ a Minimum period in whi&h in)estor has the right to $uy more units For the purpose of training only

5

$ & d

2 days period $efore de&laration of distri$ution 2 day period to ma0e redemption of in)estment at pre)ailing $uying pri&e plus refund of original sales &harge 2 day period to ma0e redemption of in)estment at original $uying pri&e plus refund of original sales &harge

##. +hi&h of the following statements is not true, a $ & d

?ollar&ost a)eraging prin&iple should $e used o)er the long term in order to maximie its $enefit The $enefits of ?ollar&ost a)eraging prin&iple are more signifi&ant in a flu&tuating mar0et n)estors &an $enefit from applying dollar&ost a)eraging prin&iple in their unit trust in)estments ?ollar&ost a)eraging is a way to o$tain more units at a higher pri&e

#%. +hat are the &hara&teristi&s of high returns funds, a

3otentially high ris0s

$

The higher the return7 the lower the ris0

&

Henerally suita$le for empty nesters

d

?o not in)est in e*uities

#(.

+hi&h statements are true regarding ME:,  

! newly laun&hed UT' will ha)e no ME: )alue ME:  Fee L :e&o)ered Expenses x 166 !)erage Fund 'ie  ?e&reasing ME: indi&ates that the UTMC is managing the fees and expenses well 9 ME:  Fee L!)erage Fund 'ie x 166 :e&o)ered Expenses a $ & d

8one of the a$o)e 7  and  7   9   9

#/. The 8!9 &umdi)idend for a unit trust fund is :M 1/676667666.66. Unitsinissue is 16676667666.66. f the di)idend de&lared is 16 sen per unit and the fund manager is &harging a / initial ser)i&e &harge7 how mu&h is the selling pri&e exdi)idend, a $ & d

=1.(5 =1./6 =1.(6 =1.%/

#2. !n in)estor had in)ested a single amount of money in a s&heme with the 'elling 3ri&e of :M 1 .66
/ years later

he de&ides to redeem his in)estment at the Buying 3ri&e of :M1.#6
(7;66

$

/7266

&

/7666

d

/7526

#5. The 8!9 for a unit trust fund is :M 1;676667666.66. Unitsinissue is 16676667666. !ssuming the fund manager is &harging a 16 initial ser)i&e &harge7 how mu&h is the selling pri&e after a unit split of 14(, a $ &

=1./; =1.1% =1.((


6

d

=1.";

#;. The 'elling 3ri&e of a unit trust fund is :M 1# per unit. Mr. Muthu in)ested into the fund with a lump sum of :M#(7666. Dow many units is he entitled to, a $ & d

/66 1666 1/66 #666

#". En. $rahim in)ested :M /7666 into a unit trust fund managed $y !BC !BC UTMC whi&h is owned $y !BC !BC Berhad. En $rahim now a $ & d

owns :M /7666 )alue worth of units entitlement owns :M /7666 )alue worth worth of *uoted share in !BC Berhad owns :M /7666 )alue worth of shares in !BC !BC Dolding of &ompanies owns :M /7666 paid up &apital of !BC !BC UTMC

%6. +hat is the maximum amount of E3F Mr. 8aseem is allowed to withdraw for the pur&hase of unit trusts on a single withdrawal if his E3F a&&ount $alan&e is as follows !&&ount 1

!&&ount #

!&&ount %

:M16;7666

:M2;7666

:M#;7666

a

=/7;66

$

=117266

&

=%7266

d

57#66

%1. !n in)estor has #666 units in Fund !. The 8!9 &umdi)idend is :M 1.#6 per unit. Fund ! has sin&e de&lared a di) idend of 16 sen per unit and the 8!9 exdi)idend is :M 1.16 per unit. +hat is the total )alue of her in)estment exdi)idend >ignore initial ser)i&e &harge and tax a

=#7#66

$

=#7(66

&

#7266

d

none of the a$o)e

%#. !hmad has :M (667666 in his $an0 a&&ount. f the &urrent &urrent inflation rate is ( 7 7 how long would it ta0e for his funds to $e hal)ed, a $ & d

1# years 12 years 1; years #6 years

%%. Dow often should the prospe&tus $e updated, a $ & d

8O spe& spe&if ifi& i& re*ui e*uire reme ment nt E)ery % years E)ery % mo months E)ery 1# mo months

%(. +hi&h of the following des&ri$es the role of the Trustee, Trustee, For the purpose of training only

7

a $ & d

3romotes 3romotes the the sale sale of units and pro)ide pro)ides s repur&has repur&hase e fa&ilities fa&ilities ssues ssues the prospe prospe&tu &tus s of of the the s&heme s&heme 'uper)ises 'uper)ises the operat operation ion of the trust trust to ensure ensure that that the o$-e&ti)e o$-e&ti)es s of the s&heme s&heme are followe followed d Ensure Ensures s the fund fund manager manager pro)i pro)ides des guara guarante nteed ed return returns s

%/. +hi&h of the following $est des&ri$es in&ome in&ome funds, a $ & d

The funds funds in)est in)est primarily primarily in sto&0s sto&0s whi&h whi&h earn signifi& signifi&ant ant di)idend di)idend in&ome in&ome 8ormally 8ormally in)ests in)ests in &orpora &orporate te $onds7 $onds7 go)ernmen go)ernmentt se&urities se&urities and and li*uid li*uid assets assets n)est n)est in in sto&0s sto&0s with with highe higherr growt growth h potent potential ial These funds funds generate generate returns returns whi&h &losely &losely resem$le resem$le the performan performan&e &e of the sto&0 sto&0 mar0et index index $oth in terms terms of ris0 and return

%2. Choose the &orre&t statement a$out the Trust Trust ?eed a $ & d

T shows shows the rights rights and o$ligatio o$ligations ns of the Manager Manager77 Trustee Trustee and and unitholders unitholders The 'C is lia$le lia$le to stru&tur stru&ture e the Trust Trust ?eed ?eed for ea&h s&heme s&heme laun&hed laun&hed $y ea&h UTMC UTMC n the e)ent e)ent the prospe&t prospe&tus us is not appro)ed appro)ed $y the 'C7 the the Trust Trust ?eed may may $e used as a repla&ement repla&ement !n appointed appointed Trustee Trustee is is responsi$le responsi$le for the issuan&e issuan&e of the the Trust Trust ?eed ?eed

%5. +hi&h of the following do&uments go)ern the operation of a Trust fund, a $ & d

3rospe&tus Trust ?eed Fund Fund Mana Manage gerG rGs s rep repor ortt Trust rustee eeGs Gs :epo :eport rt

%;. UnitholderGs rights in&lude the following ex&ept7 a $ & d

!ttend !ttend the Board Board of ?ire ?ire&to &torGs rGs meetin meeting g 9ote ote in unit unitho hold lder erGs Gs meet meetin ings gs To ma0e ma0e *ueri *ueries es >in&l >in&ludi uding ng &ompl &omplain aints ts to to UTMC UTMC :ight :ight to to re&ei re&ei)e )e dist distri$ ri$uti utions ons of in&o in&ome me

%". !n in)estor re&ei)es #6 #6 nominal return from his in)estment and his marginal tax rate is #6. F the annual inflation rate is 167 what is his effe&ti)e return, a $ & d

16 6 2 ;

(6. +hi&h of the following &harges is the fee le)ied $y the manager on the in)estors to &o)er the &osts of distri$uting the unit trust, a $ & d

Mana Manage geme ment nt fee fee nit nitia iall 'er) 'er)i& i&e e &har &harge ge Trustee fe fee :epu :epur& r&ha hase se fee

(1. The lowest managerGs managerGs $uying pri&e allowa$le allowa$le under the Huidelines on Unit Trust Trust funds e*uals Ithe  minus the . a $ & d

8!9 8!9

8

(#. To meet the &hallenges posed $y the new sophisti&ated &ustomers7 3?UT must stri)e to do the following ex&ept 4 a $ & d

Mainta Maintain in high high ethi&al ethi&al stand standard ards s in their their mar0et mar0eting ing Fine Fine tune tune their their produ& produ&tt 0now 0nowled ledge ge Dard sell !&*uir !&*uire e suita$l suita$le e profes professio sional nal *uali *ualifi&a fi&atio tions ns

(%. The following are ways ways to impro)e the ser)i&e *uality to &ustomers ex&ept 4 a $ & d

Ma0ing appli&ation appli&ation forms and other other do&umen do&uments ts easy easy to read read and and use nforming nforming the in)estor in)estors s a$out pro&esse pro&esses s in)ol)ed in)ol)ed in the pur&hase pur&hase and and how long these these might might ta0e Ensuring Ensuring those in)ol)ed in)ol)ed in ser)i&ing ser)i&ing &lients &lients are wellinfo wellinformed rmed and are are aware of the extent extent of their their responsi$ilit responsi$ilities ies Keeping Keeping &ustomers &ustomers happy $y hiding hiding negati)e negati)e news news from them

((. +hi&h of the following are regulations affe&ting the UTMC, UTMC, a $ & d

Maximu Maximum m exposu exposure re to any one grou group p of &omp &ompani anies es Maximu Maximum m expo exposur sure e in in a single single &ompan &ompany y Maximu Maximum m expo exposur sure e in in fore foreign ign mar0et mar0ets s !ll !ll of the the a$o a$o)e )e

(/. n finan&ial planning7 people are assisted with the following ex&ept    9 9 9 a $ & d

Cashflow planning :etirement planning Contingen&y 3lanning Family 3lanning n)estment 3lanning Tax Tax planning planni ng   9   9 9 9  9

(2. +hi&h of the following statements a$out finan&ial planning is false a $ & d

'hort term term )olatility )olatility in returns returns will ha)e ha)e a greater impa&t impa&t on long term term in)estors in)estors than on short short term term in)estors in)estors Henerally Henerally77 the older older the the in)estor in)estor77 the lower the the ris0 he &an tolera tolerate te The in)estorGs in)estorGs future future finan&ial finan&ial goals goals ha)e ha)e to $e expressed expressed in future future )alue )alue >in terms terms of tomorrowG tomorrowGs s :inggit The most importa important nt thing in in portfolio portfolio design design is to put put the &lientGs &lientGs needs needs and wants wants first first

(5. +hi&h of the following is not a feature of an openended fund, a $ & d

Units in &ir&ulati &ir&ulation on are flexi$le flexi$le and will in&rease in&rease or de&rease de&rease in sie sie with e)ery &reatio &reation n and &an&ellation &an&ellation of units units The pri& pri&es es of the the UT' are are $ased $ased on on demand demand and and supply supply The trust trust is is not not listed listed on a sto&0 sto&0 ex&h ex&hang ange e 'ales and and repur&hase repur&hases s of the units are are transa&te transa&ted d dire&tly dire&tly with with the UTMC UTMC

(;. 8ame the features of the listed fund  The pri&es flu&tuate daily and are $ased on supply and demand  The num$er of units is restri&ted on&e the in)estment is floated on the sto&0 ex&hange  'ale and repur&hase of units are transa&ted with $ro0ers 9 'ale and repur&hase of units are transa&ted dire&tly with the fund manager a

  


9

$ & d

7      9   9

(". Fixed interest in)estments ha)e a high negati)e &orrelation with e*uities meaning 4 a $ & d

+hen the e*uity mar0et is down7 the return from fixed interest in)estments in&reases +hen the e*uity mar0et is up7 the return from fixed interest in)estment will supersede the return from e*uity mar0et The ris0 element of fixedin&ome fund is higher than e*uities The returns from e*uities are always greater than fixed interest in)estments regardless of the mar0et situation

/6. 8ame the first state unit trust fund whi&h was open to nonBumiputra in)estors a $ & d

!'8T! !manah 'aham +awasan #6#6 ?ana @ohor !manah 'aham B'8

/1. 'in&e  E3F &ontri$utors ha)e $een allowed to withdraw part of their sa)ings from !&&ount 1 to in)est in appro)ed finan&ial institutions a $ & d

1""2 1""/ 1""( 1""%

/#. The 3rospe&tus of ea&h s&heme must &ontain the following information ex&ept 4    9 a $ & d

n)estment o$-e&ti)es !uthorised in)estment Fees and &harges Earning distri$ution

7  and 9 9 only !ll of the a$o)e  and  only

/%. !n in)estor is re&ei)ing 1/ nominal yield from his in)estment and his marginal tax rate is 16. f the annual inflation rate is /7 what is the differen&e $etween the nominal yield and effe&ti)e yield, a $ & d

2./ ;./ 1#.5/ 1%./

/(. The management fee is used to 4 a $ & d

&o)er management expenses &o)er &ommission paid to 3?UTs &reate more rewards for in)estors expand the sie of the unit trust funds

//. The $asi& ways in whi&h the performan&e of a Unit Trust s&heme should $e analysed is 4    9 9 a $ & d

:aw return !nnualised return :eturns after fees and &harges 3erforman&e Ta$les Consisten&y

     9 9 only !ll of the a$o)e


10

/2. !&&ording to the guidelines7 the following are true ex&ept 4 a $ & d

The initial offer period of any new fund must not ex&eed #1 days The UTMC must pro)ide e)ery in)estor with a &oolingof right of not less than 2 $usiness days The UTMC must pay the pro&eeds of the repur&hase of units to the unitholder within 16 &alendar days of re&ei)ing the repur&hase re*uest The UTMC needs to pu$lish the daily selling<$uying<8!9 pri&es in either a Malay or English newspaper

/5. +hy do mar0eting of unit trusts sometimes fail, 

3rodu&t awareness N potential in)estors are unaware of how unit trust &an help to in&rease worth  8OT for me N 3?UT una$le to identify needs of &lients  'ome UTMCs ha)e not performed well in relation to their peers 9 'ome potential in)estors fear losing their &apital in UT' -ust li0e shares7 &ompared with safe ha)ens su&h as sa)ings a<& and fixed deposits a $ & d

their net

7      9 7  and 9 !ll the a$o)e

/;. The following statements are true ex&ept a $ & d

Basi&ally7 li*uidity means how fast the in)estor &an sell her in)estment To redeem their units7 unit trust in)estors only need to fillin a redemption form and su$mit it to the UTMC There is no ris0 asso&iated with unit trust in)estment ?ollar&ost a)eraging prin&iple helps turning flu&tuating pri&es to in)estorGs ad)antage

/". +hi&h of the following are the prin&iples stated in the Code of Ethi&s,    9 9 9 a $ & d

Donesty ?ignity ntegrity Friendliness Fair ?ealing Hood Faith

7779 and 9 7779 and 9 7797 9  9 77979 and 9

26. +hi&h of the following is not true regarding methods of in)esting in unit trusts, a $ & d

Aump sum in)estment :egular sa)ings Aoan finan&ing 8one of the a$o)e

21. The manager of the unit trust has the following responsi$ilities ex&ept 4 a $ & d

Cal&ulation of unit pri&es ?istri$ution of in&ome ?aytoday management of the assets Ownership of the assets of the trust

2#. +hen a di)idend is de&lared7 the 4 a $ & d

in)estment )alue of the unitholder is not affe&ted in)estment )alue of the unitholder falls relati)e to the di)idend paid di)idend must $e rein)ested in)estment )alue of the unitholder in&reases relati)e to the di)idend paid


11

2%. t is important to maintain a li*uidity $uffer in the Unit trust s&heme to &ater for redemption. +hat is the usual form where$y li*uidity is held, a $ & d

Cash and shortdated interest instruments Cash and short term property Cash and short term insuran&e Cash and listed se&urities

2(. The following is a do&ument transa&ted $etween the respe&ti)e parties. +hi&h do&ument is in&orre&t, a $ & d

'C and UTMC  Huidelines on Unit Trust Funds UTMC and 3?UT  Fund !ppli&ation form FMUTM and 3?UT  'tatutory ?e&laration Form 3?UT and n)estor  :is0 ?is&losure 'tatement

2/.  is the pri&e at whi&h units are sold to the pu$li&. t in&ludes the initial ser)i&e &harge. a $ & d e

Offer pri&e Bid 3ri&e :edemption pri&e Buying pri&e 8!9

22. !&&ording to the Huidelines on Unit Trust Funds7 the management &ompany must set up a
Unitholder Committee n)estment Committee FMUTM Committee !gent Committee

25. t is the duty of the  to prepare a prospe&tus $efore laun&hing a fund a $ & d

'e&urities Commission FMUTM Trustee UTMC

2;. !ll Unit Trust funds must $e appro)ed $y 4 a $ & d

Ban0 8egara 'e&urities Commission Trustee Management Company

2". ?ollar&ost a)eraging is the prin&iple of in)esting  amount of money at  inter)als irrespe&ti)e of the pri&e le)el. a $ & d

e*ual7 regular e*ual7 irregular une*ual7 regular une*ual7 irregular

56. f the 8!9 of a fund is =1.6/7 the $uying pri&e is =1.667 and selling pri&e is =1.6"7 what is the amount that an in)estor would re&ei)e if he wants to redeem his 167666 units, a $ & d

="7;66 =167666 =167/66 =167#66


12

51. +hi&h of the following is not in the &ontents of a 3rospe&tus, a $ & d

information on the UTMC potential ris0s of in)esting in unit trusts management expenses ratio fore&ast return of the fund

5#. Mr. +ong has a $alan&e of :M#/67666 in his E3F a&&ount. +hat is the maximum amount that he &an withdraw from his E3F a&&ount to in)est in a unit trust fund, a $ & d

=#67666 =%67666 =(67666 =/67666

5%. !pplying the :ule of 5#7 what rate of return should you loo0 for in order for you to dou$le :M(67666 in / years, a $ & d

/.# 5.# 1(.( #;.;

5(. ! Unit trust fund de&lared a $onus issue of 14#. F the 8!9 of the fund &um $onus is :M1;676667666 and units is issue &um $onus is 16676667666 units what will $e the 8!9 per unit ex$onus, a $ & d

=6.26 =6."6 =1.#6 =1.;6

5/. +hi&h of the following is not )alid, a $ & d

The Management &ompany is responsi$le for sending all reports and noti&es to the unitholders The Management &ompany is not permitted to ma0e any loans out of the in)estment funds to any parties t is the duty of the 'C to setup an n)estment Committee The 'C must appro)e mem$ers of the in)estment &ommittee of a unit trust fund

52. ! unit trust fund de&lared a gross di)idend of 1# sen per unit. The 8!9 on &um di)idend is :M#(676667666 and units is issue &um di)idend are #6676667666 units. +hat will $e the 8!9 per unit exdi)idend, a $ & d

=1.1% =1.6; =#.#; =1.((

55. +hi&h of the following is not an ad)antage of in)esting in Unit Trusts, a $ & d

?i)ersifi&ation through a $road$ased portfolio 3rofessional Fund management Ai*uidity Huaranteed return

5;. +hat is 8!9 per unit, a $ & d

Total )alue of the in)estment after dedu&ting ser)i&e &harge :atio of the in)estment in fixedin&ome se&urities 8!9 of the in)estment di)ided $y the num$er of units in issue Total units held $y the s&heme multiplied with the repur&hase pri&e

5". +hat is the first thing a 3?UT must do when approa&hing a &lient,


13

a $ & d

Ho through the 3rospe&tus Explain what unit trusts are 3rodu&e his authoriation &ard Complete a :is0 !nalysis

;6. +hi&h is the most li0ely $enefit you will get with a di)ersified portfolio that in&ludes sto&0s7 $onds and money mar0et funds, a $ & d

Digher returns than you get with a portfolio that is not di)ersified The a$ility to $alan&e $oth ris0 and return in a&hie)ing your finan&ial goals ! guarantee that your portfolio will not suffer if the sto&0 mar0et falls !ll of the a$o)e


14

#$C% Q&EST$(S – SET B

1.

FMUTM stands for4 !. Federation of Malaysian Unit Trust Managers B. Federal Malaysian Unit Trust Managers C. Federal of Malayan Unit Trust Managers ?. Federation of Malaysian Unit Trust Management

#.

The FMUTM &oun&il &onsists of how many ele&ted mem$ers, !. 1# C. 1/ B. 16 ?. "

%.

+hat are openended Unit Trusts, !. The units are listed and traded on the sto&0 ex&hange. B. The units are not listed in the sto&0 ex&hangeP sales and repur&hase are transa&ted dire&tly with the fund manager. C. Transa&tions are through the sto&0$ro0er. ?. They are slami& Unit Trusts.

(.

+ho is empowered to regulate the unit trusts industry as well as ha)ing powers of prose&ution and penalty where $rea&hes are 0nown to happen, !. 'e&urities Commission C. Fund Managers B. FMUTM ?. !gents

/. !. B. 2.

+hat legal do&ument is $eing used in the Unit Trusts industry 'ales and 3ur&hase !greement C. 3ower of !ttorney The ?eed ?. 8one of the a$o)e

Dighris0 in)estors may &hoose to in)est in aggressi)e growth funds and others may &onsider in)esting in $alan&e funds. +hat are the fa&tors that &ause the in)estors to &onsider in)esting in $alan&e funds, . Henerally7 the return is higher than e*uity unit trust . The portfolio &onsists of wider range of asset &lasses. . The portfolio of the fund is well $alan&ed and thus redu&es the ris0 9. The returns are guaranteed. !. B.

     

C.   9 ?. !ll the a$o)e

5.

+hi&h of the following statements is not )alid, !. One of the reasons why the per&entage of the unit trustsG 8!9 to mar0et &apitaliation in Malaysia is &omparati)ely lower than some other &ountries li0e the U' and UK is $e&ause the Malaysian go)ernment has a &omprehensi)e retirement a&&umulation plan 0nown as E3F. B. By in&reasing the professionalism and $etter mar0eting of the produ&ts $y the fund management &ompany7 it will stimulate the growth of the unit trust industry in Malaysia. C. The &on&ept of unit trust has $een introdu&ed in Malaysia sin&e 1"/". Dowe)er the industry only witnessed its rapid growth sin&e 1""6. ?. The 'e&urities Commission was esta$lished as a $ody solely representing the unit trust industry.

;.

n)estors normally used fixed deposit rates and share mar0et index to assess the performan&e of their in)estment. Dowe)er7 it &an $e misleading $y only analying the statisti&s pro)ided. +hat are the other fa&tors that need to $e &onsidered when assessing the performan&e, . Consisten&y . :is0 Ae)el . Fees  Charges !. B.

".

     

C. 7    ?. 8one of the a$o)e

The purpose of prospe&tus is  !. To pro)ide potential and existing in)estors with all the ne&essary information to ma0e an informed de&ision. B. To outline the mar0et plan for the s&heme. C. To highlight the pro-e&ted returns of the s&heme. ?. To outline the profile of the target in)estors.

16. +hi&h of the following in)estment instrument is histori&ally $est prote&tion against inflation, !. 'to&0s C. Hold B. Bond ?. Fixed ?eposit


15

11. Mr. ! is holding #7666 units of Fund !BC. The 8!9 of the fund &umdistri$ution is :M1.#67 and the fund de&lares :M6.16 distri$ution >assuming no taxes and &harges. Upon the de&laration7 the Ex? 8!9 is :M1.167 Ex? $uying pri&e is :M1.167 Ex? selling pri&e is :M1.1/. !ssuming Mr. ! wants his distri$ution to $e rein)ested7 and the rein)estment pri&e is the same as 8!97 what is the in)estment )alue of Mr. ! after the distri$ution, !. :M#7(66 C. :M#7%66 B. :M#7(#6 ?. 8one of the a$o)e 1#. Based on Question 117 what is the units holding of Mr. ! after the distri$ution de&laration, !. #7#66 units C. #71;1.;# units B. #7611.#% units ?. #7(66 units 1%. ! de&reasing ME: stand for whi&h of the following  !. The performan&e of the fund is getting worse. B. The fund performan&e is getting $etter. C. The Management Company is managing the total fees and expenses well. ?. The Fund Manager is redu&ing the annual management fee. Questions 1( to 157 to $e answered $ased on the following. The pu$lished pri&es of Fund ! were as follows4  ?ate 1#<6;<"" 1%<6;<"" 1(<6;<""

8!9 6."/ 6."( 6."2

Buy 6."/ 6."( 6."2

'ell 1.66 6."" 1.61

1(.

Based on histori&al pri&ing7 Mr. Aee in)ested :M#7 666 in Fund ! on 1#<6;<""7 how many units is he going to get, !.#7666 units C. #76#6.#6 units B.#716/.#2 units ?. #71#5.2/ units

1/.

Based on histori&al pri&ing7 Ms. Tan redeemed /7666 units of Fund ! on 1%<6;<""7 how mu&h money is she going to get $a&0, !.:M(7"/6 C. :M(7;66 B.:M(7566 ?. :M(75/6

12.

Based on forward pri&ing7 Mr. Aim in)ested :M(7 666 in Fund ! on 1%<6;<""7 how many units is he going to get, !.%7"26.(6 units C. (7666.25 units B.(76(6.(6 units ?. (7122.25 units

15.

Based on forward pri&ing7 Ms. Cheng redeemed 167666 units of Fund ! on 1%<6;<""7 how mu&h money is she going to get $a&0, !.:M"7(66 C. :M"7266 B.:M"7/66 ?. :M167166

1;. !. B. 1".

IThe pri&es are determined $y demand and supply.J This is one of the &hara&teristi&s of4  n&ome Fund C. Openended Fund Hrowth Fund ?. Close ended Fund

Mr. Aee has totally :M1667666 in E3F !
#6. The agen&y stru&ture of the unit trust must not ex&eed  tiers. !. % C. / B. ( ?. 2 #1. !s per re*uirement7 the annual report of the s&heme should in&lude . ManagerGs report . TrusteeGs report . 'tatement of assets and lia$ilities 9. !uditorGs report !. B.

7  7 

C. 7    ?. !ll of the a$o)e

##. +hi&h of the following is not the duty of the management &ompany,


16

!.

To maintain an a&&urate register of unitholders with information su&h as addresses7 date of sales and pur&hase and nationality of unitholders7 B. To 0eep ade*uate a&&ounting re&ords in relation to its operations and the in)estment operations. C. To 0eep trustee informed of any in)estments or disposals7 whi&h the management &ompany underta0es. ?. To appoint an appro)ed &ompany auditor for the fund.

#%. +hat is the main in)estment o$-e&ti)e of slami& Unit Trust Funds, !. To mat&h the in)estment returns of noninterest $an0ing produ&ts and Ta0aful insuran&e. B. To pro)ide an in)estment opportunity for the Muslim in)estors to a&&ess to &on)entional $an0ing7 insuran&e and finan&ial ser)i&es and produ&ts. C. To generate &onsistent in&ome7 thus allowing the unitholders to pay for their Ia0atJ. ?. To in)est in a&&ordan&e to the 'yariah 3rin&iples. #(. The in)estment of unit trust s&heme in any &lass of se&urity of any issuer must not ex&eed  of the se&urity issued. !. 16 C. #6 B. 1/ ?. 8o limit #/. +hen was the first Malayan unit trust laun&hed, !. 1"/% C. 1"26 B. 1"/" ?. 1"2" #2. The ?eed is to set out the formula to &al&ulate the fees paya$le to4 !. 'e&urities Commission and Ban0 8egara B. Trustee and Manager C. Trustee and 'e&urities Commission ?. Manager and 'e&urities Commission #5. The Manager should not hold more than of the total units of the trust fund in &ir&ulation at any time. !. 16 C. #/ B. #6 ?. %6 #;. The Manager4 . . . 9. !. B.

must $e in&orporated in Malaysia &an also $e the trustee of a fund should $e a su$sidiary of a finan&ial ser)i&es institution or any other institutions appro)ed $y the 'e&urities Commission should appoint an independent auditor to the fund

7 9 7 

C. 7   9 ?. !ll the a$o)e

#". The legal do&ument that sets out the o$ligations and rights of the trustee7 manager and unitholders is &alled4 !. B. %6.

Certifi&ate 3rospe&tus

C. ?eed ?. !greement

!. B.

The Federation of Malaysia Unit Trust Managers >FMUTM was formed on. !ugust7 1""# C. 'eptem$er7 1""( !ugust7 1""% ?. !ugust7 1""(

!. B.

+ho owns the assets of a unit trust, n)estor Trustee

%1.

C. Fund Manager ?. Management Company

%#. +hat are the ma-or &hara&teristi&s of a property trust fund, . . . 9. !. B.

3roperty trusts in)est in real property 3roperty trusts are listed on a sto&0 ex&hange The most &ommon type of unit trust in Malaysia n)est into share mar0et   9 only    only

C. 7    only ?. 7   9 only

%%. 'e&urities Commission >'C was esta$lished in whi&h year, !. B.

1""2 1""%


C. 1""6 ?. 1""#

17

%(. Under whi&h a&t of 3arliament7 regulation of the unit trust is the responsi$ility of the 'e&urities Commission, !. B.

'e&urities Commission !&t 1""% 'e&urities ndustry !&t 1";%

C. Companies !&t 1"2/ ?. Trustee !&t 1"("

%/. +hy is the unit trust industry regulated, !. B. C. ?.

To prote&t the interest of the unit trust Management Company. To prote&t the interest of the unit trust s&heme. To prote&t the interest of the in)esting pu$li& To prote&t the &apital mar0et

%2. +hy is it ne&essary to pro)ide in)estment guidelines, . . . !. B.

n)estment guidelines are &reated to prote&t the interest of unit trust management &ompany n)estment guidelines are &reated to redu&e the ris0 of loss for the in)estors n)estment guidelines are &reated to maintain the le)el of pruden&e and professionalism in the industry  only    only

C.    only ?. !ll of the a$o)e

Question 37 to 41 is to be answered based on the followings:

The 8!9 &umdistri$ution of Fund B is :M#"#7/667666 and units in &ir&ulation is 1"/76667666. The fund de&lared distri$ution of 1/ &ents per unit7 and the manager is &harging / ser)i&e &harge.

%5. +hat is the 8!9 per unit Cum?istri$ution, !. B.

:M1./6 :M1.%/

C. :M1.(/ ?. :M1.26

%;. +hat is the 8!9 per unit Ex?istri$ution, !. B.

:M1./6 :M1.%/

C. :M1.(/ ?.:M1.26

%". +hat is the Ex? selling pri&e of Fund B7 if the sales &harge is / rounding to nearest &ent, !. B.

:M1./6 :M1.%/

C. :M1.(/ ?. :M1.(#

(6. +hat is the in)estment )alue of Mr Do $efore the de&laration of distri$ution7 if he is holding 267666 units, !. B.

:M"%7666 :M"#7666

C. :M"67666 ?. :M"17/66

(1. !ssuming no tax7 what is the in)estment )alue of Mr Do after the de&laration of distri$ution7 if he is holding 267666 units and the distri$ution is to rein)est at 8!9 per unit, !. :M"%7666 C. :M"67666 B. :M"#7666 ?. :M"17/66

(#. +hi&h of the following is in&orre&t, !. B. C. ?.

38B laun&hed the 1st national $umiputra unit trust fund N the !manah 'aham 8ational >!'8 in 1";1 The se&ond national $umiputra unit trust fund N the !manah 'aham Bumiputra >!'B was laun&hed in 1""6 n the year of 1""%7 the 'e&urities Commission !&t was passed The 1st unit trust &ompany in Malaysia was formed in 1"2%

(%. +hi&h of the following is &orre&t, !. B. C. ?.

nitial 'er)i&e Charge  'elling 3ri&e N 8!9 :edemption Charge  'elling 3ri&e N 8!9 Management Fee  'elling 3ri&e N 8!9 Trustee Fee  'elling 3ri&e N 8!9

((. Unit trusts in Malaysia are allowed to in)est in the following7 ex&ept4 !. B.

Fixed in&ome instrument 'to&0

C. Commodity ?. 8one of the a$o)e

(/. :egulation of the unit trust industry has $een entrusted to  !. B.

FMUTM Ban0 8egara

C. 'e&urities Commission ?. Trustee

(2. +hi&h of the following are expenses of a unit trust s&heme, For the purpose of training only

18

. . !. B.

Management fees !uditor fees    

. Trustee Fee 9. Cost of sending reports C.  ?. 7 7   9

(5.  is not a return7 $ut it &reated more units for in)estors. !. B.

3rofit Bonus issue

C. ?istri$ution ?. 8et in&ome

(;.  is a return de&lared to unitholders in the forms of &ash. !. B.

3rofit Bonus issue

C. ?istri$ution ?. 8et in&ome

(". !&&ording to guidelines on unit trust fund7 if the finan&ial year for a fund ended at %6 @une7 the annual report has to $e sent out $y . !. 1/ @uly B. %1 @uly

C. %1 !ugust ?. %6 @une

/6. Henerally7 the )olatility or ris0 element of  is lower than that of e*uity funds li0e growth fund. !. B.

3roperty trust Closeended fund

C. Openended fund ?. n&ome fund

/1. !&&ording to guidelines to the finan&ing of unit trusts issued $y 'C on %6 8o) 1""/7 the maximum margin of finan&e for pur&hases of unit trusts is  !. /6 B. %%

C. 25 ?. "6

/#. ME: measures the  of the Management Company !. B.

3rofita$ility Effi&ien&y

C. Management Fee ?. n&ome

/%. !&&ording to the Huidelines on unit trust funds7 a unit trust fund may in)est in  up to 16 of its net asset )alue. . Unlisted se&urities of a Malaysian issuer . 'hare &apital of any single issuer . Colle&ti)e in)estment s&heme 9. Finan&ial futures >for hedging purpose only !. B.

7 7 

C. 7    ?. !ll of the a$o)e

/(. +hi&h of the following statement is )alid, !. The daily selling and repur&hase pri&es for units are to $e determined $y the management &ompany B. The management &ompanies are not allowed to impose more than 16 of ser)i&e &harge C. The initial offer period of a unit trust fund must not ex&eed %6 days ?. The pro&eeds of redemption must $e paid to the unitholder within 1( days a&&ording to the Huidelines on Unit Trust Funds //. In)estment $en&hmar0ingJ is !. Fund management o$-e&ti)e that sele&ts se&urities $ased on a spe&ified 'to&0 Ex&hange Composite ndex B. 'tandard measures when assessing in)estment performan&e C. 'hifting in)estment portfolio from sto&0s to fixedin&ome se&urities ?. ! strategy that entails $uying low and selling high /2. !&&ording to the Huidelines on unit trust funds7 the in)estment in foreign se&urities is su$-e&t to  of its net asset )alue. !. 16 C. #6 B. 1/ ?. 8one of the a$o)e /5. Mr Hanesh has :M/667666 and wants to 0now how long it would ta0e to dou$le his money at the earning rate of 5./ p.a. !. 1.# years C. (.; years B. #.( years ?. ".2 years /;. +hat is the rate of return Mr. Hanesh should loo0 for in order for his in)estment of :M/667666 to dou$le in / years, !. /.# p.a. C. 1(.( p.a B. 5.# p.a. ?. #;.; p.a. For the purpose of training only

19

/". !&&ording to the Huidelines on Unit Trust Funds7 . n)estment of any unit trust s&heme in foreign 'e&urities must first re&ei)e the appro)al of Ban0 8egara Malaysia and the 'e&urities. . n)estment of the s&heme in Unlisted 'e&urities must not ex&eed 16 of the s&hemeGs 8!9. . n)estment of the s&heme in other &olle&ti)e in)estment s&hemes must not ex&eed 16 of the s&hemeGs 8!9. 9. n)estment of the s&heme in futures &ontra&ts must not ex&eed 16 of the s&hemeGs 8!9. !. B.

     9

C. 7    ?. !ll of the a$o)e

26. +hi&h of the following statement is )alid in regards to the de&laration of unit splits of a unit trust fund, !. The 8!9 of the unit trust fund will $e in&reased B. The 8!9 of the unit trust fund will $e de&reased C. The num$er of units in &ir&ulation will $e in&reased ?. The num$er of units in &ir&ulation will $e de&reased 21. ! distri$ution of :M6.6/ per unit has $een distri$uted for Fund !BC. 8!9 &um distri$ution was :M1.#6. Total num$er of units in &ir&ulation $efore in&ome distri$ution was 176667666 units. The fund &harges a / initial ser)i&e fee and a % repur&hase fee. +hat is the exdistri$ution managerGs repur&hase pri&e,, !. :M1.16 C. :M1.1" B. :M1.#1 ?. :M1.1# 2#. f an in)estor se&ures the maximum margin of loan finan&ing >as spe&ified in the guideline on unit trust funds for the in)estment in unit trust and the amount of in)estment on his own is :M(676667 what will $e his total in)estment >round up to the nearest :inggit )alue, !. :M1"7561 C. :M;17#1# B. :M/"7561 ?. :M1#17#1# 2%. +hi&h of the following do&ument need to $e signed $y in)estors who wish to apply for the loan finan&ing to pur&hase unit trusts, !. !$solute !ssignment C. Aetter of !dministration B. :is0 ?is&losure 'tatement ?. Aetter of Underta0ing 2(. Under what &ir&umstan&es7 a Finan&ier may exer&ise I&all marginJ, !. +hen the )alue of the in)estment depre&iates and the )alue of the lia$ility of the in)estor in&reases B. +hen the returns of the in)estment ex&eed the loan amount C. +hen the in)estor li*uidates the in)estment ?. +hen the in)estor tops up additional in)estment amount into the same a&&ount 2/. +hi&h of the following are expenses of a unit trust s&heme, . Management fees  Trustee fees . !uditor fees . Cost of sending out reports to unitholders 9. Cost of issuing distri$ution warrant !. B.

7 7  7 7 9

C. 7   9 ?. !ll of the a$o)e

22. The main duty of the trustee is to prote&t the interest of the unitholder. f the trustee was to dis&o)er that the operation of the fund does not &omply with the terms and &onditions stipulated in the deed7 the trustee must then report to !. 'e&urities Commission >'C B. Ministry of ?omesti& Trade  Consumer !ffair C. Ban0 8egara Malaysia ?. Ministry of Finan&e 25. ! unit trust s&heme must appoint an in)estment &ommittee in whi&h the role of the in)estment &ommittee of the s&heme is4 !. To formulate7 implement and monitor the in)estment management poli&ies of the s&heme B. To pool resour&es together in order to meet the re*uest for redemption C. To formulate the rules and regulations of the unit trust industry ?. To ad)ise the 'yariah Committee on how to in)est in sto&0 mar0et 2;. One of the unit trust fund features is !. +hen the interest rates in&rease7 the return from unit trust fund will also in&rease


20

B.

The unitholders do not ha)e to loo0 for $uyers when they want to li*uidate their in)estment as the fund manager must repur&hase from its unitholders C. Aump sum in)estment is generally less ris0y than dollar&ost a)eraging in)estment method ?. !n index fund ser)es as a $en&hmar0 for all the unit trust funds 2". For the period of 1 @anuary 1""" to %6 ?e&em$er 1"""7 the expenses in&urred $y the fund were4 Management fee Trustee !uditor fee Ban0 &harges  others

4 4 4 4

:M/67666 :M167666 :M%7666 :M;7666

The a)erage fund sie is :M/76667666. 3lease &al&ulate the Management Expense :atio >ME: !. 1.(# C. 1.% B. 1./ ?. # 56. +hen &omparing the performan&e of the fund o)er a period of time7 a de&reasing ME: will indi&ate that  !. The UTMC is not managing the total fees and expenses well B. The UTMC is managing the total fees and expenses well C. The UTMC did not meet itGs in)estment strategy ?. ThereGs no effe&t to the fund 51. These are the responsi$ilities of unit trust managers7 ex&ept4 !. Manage the assets B. Cal&ulate 8!9 C. ?istri$ute in&ome. ?. Own all the assets 5#. +hi&h of the following iss of unit trust, !. :eady a&&ess to funds C. 3rofessional Management B. 'pread of ris0 ?. !ll of the a$o)e 5%. !ll assets of the unit trust s&heme are held in the name of  for safe0eeping. !. Trustee C. n)estment Committee B. Unitholder ?. Unit Trust Management Company 5(. Formed in 1""%7  pro)ide a &ommon platform for unit trust management &ompanies to dis&uss issues relating to the unit trust industry. !. FMUTM C. :OC B. 'C ?. UTMC 5/. Under the Huidelines of Unit Trust Funds re*uire ea&h Unit Trust '&heme >UT' to ha)e prospe&tus. This do&ument must $e updated or re)ised e)ery4 !. 2 months C. 1# months B. ; months ?. #( months 52. 8!9 of 3CK Fund $efore distri$ution de&lared was :M6.;/. The distri$ution pay out / sen and unit split of #4#/. +hat is the 8!9 per unit after distri$ution and unit split, >:ound to near % de&imal points !. :M6.5%5 C. :M6.5;5 B. :M6.5(1 ?. :M6.5/1 55. 8ame the first $umiputera unit trust fund $y 38B4 !. !manah 'aham 8asional C. !manah 'aham +awasan #6#6 B. !manah 'aham Bumiputera ?. !manah 'aham Malaysia 5;. Fund R stri)es to a&hie)e in&ome or a &om$ination of $oth in&ome and growth. t in)ests primarily in sto&0s that earn signifi&ant in&ome distri$ution. +hi&h &ategory of this fund $elongs to, !. ndex fund C. n&ome Fund B. Bond fund ?. Hrowth fund 5". The role of a Fund Manager in&ludes the following7 ex&ept4 !. 3repare all noti&es and reports to $e issued to unitholders B. !rranges for audit of the trustGs a&&ounts C. !&ts as the &ustodian of the fund ?. 3romotes the unit trust s&heme


21

;6. The trustee4 . is an independent &ompany appro)ed $y the ministry . ensure that all the terms of the ?eed are followed . appoint the independent auditor for the fund 9. is the &ustodian for the fund !. B.

7 7  7 7 9


C. !ll of the a$o)e ?. 8one of the a$o)e

22

#$C% Q&EST'$(S – SET C

1.

+hat is the purpose of the prospe&tus, !. To pro)ide potential and existing in)estors with all the ne&essary information to ma0e an informed de&ision. B. To outline the mar0et plan for the s&heme. C. To highlight the pro-e&ted returns of the s&heme. ?. To outline the profile of the target in)estors.

#.

On Tuesday7 # ?e&em$er #66%7 the pu$lished selling pri&e per unit is :M6.;(. The 8!9 per unit is :M6.;6. The selling pri&e per unit at the end of the $usiness day is :M6.;;. !n in)estor would li0e to in)est :M1/7 666 on the same day. Dow many units will he get $ased on forward pri&ing, !. 1576(/.(/ units C. 127222.25 units B. 1%7/66.66 units ?. 127%6(.%/ units

%.

n)estors are allowed to withdraw from one of their E3F a&&ount for in)estment in unit trust. The a&&ount that they &ould withdraw from is4 !. !&&ount 1 C. !&&ount % B. !&&ount # ?. !&&ount (

(.

There is a fee le)ied $y the manager to the unit trust in)estors in order to &o)er the &ost of distri$ution of unit trust. This fee is  !. Management fee C. Trustee fee B. nitial ser)i&e &harge ?. :epur&hase fee

/.

+hi&h &ategory of in)estment must sign a :is0 ?is&losure 'tatement, !. n)estment pur&hased with huge amount of &ash. B. n)estment pur&hased repeatedly )ia :egular 'a)ing 3lan. C. n)estment pur&hased )ia Aoan Finan&ing ?. E3F in)estment s&heme

2.

+hi&h of the following information &an $e found in the prospe&tus of a unit trust s&heme, . n)estment o$-e&ti)es. . Fees  &harges . !uthoried in)estments. 9. Trust expenses !. B.

7      

C. 7   9 ?. !ll of the a$o)e

5.

+hi&h of the following fa&tors should $e ta0en into &onsideration $efore in)esting in unit trusts, !. Fees  &harges in&urred C. :is0 of in)esting B. n)estment o$-e&ti)e ?. !ll of the a$o)e

;.

!ssuming an in)estor is pra&ti&ing the prin&iple of ?ollar Cost !)eraging 3rin&iple. Hi)en the following data7 &al&ulate the a)erage &ost per unit for the in)estor > round up to the nearest 1 cent . ?ate Mar #66# !pril #66# May #66#

'elling pri&e :M6.;6 :M6."1 :M6.;%

!. :M 6.;6 B. :M 6."# ".

n)estment amount :M1666.66 :M1666.66 :M1666.66 C. :M6.;( ?. :M6."2

Choose the &orre&t statement. . The primary o$-e&ti)e of a growth fund is growth of &apital. . n&ome Fund see0s the lowest possi$le &urrent in&ome. . slami& Fund is a unit trust7 whi&h in)ests in a&&ordan&e with 'yariah 3rin&iples. 9. The main o$-e&ti)e of $alan&ed fund is to $uild &apital  pro)ide some in&ome from a $alan&ed mix of in)estment. !. 7    C. 7   9 B. 7   9 ?. !ll of the a$o)e

16. !n in)estor had in)ested a single amount of money in a s&heme with the selling pri&e :M6.5/ per unit. Three years late7 he de&ided to redeem his in)estment at $uying pri&e of :M1.66 per unit and the total pro&eed is :M/7 526.66. Dow mu&h he in)ested three years ago, !. :M #7;;6.66 C. :M/7526.66 B. :M 17"#6.66 ?. :M(7%#6.66 11. f a fund performan&e is doing good this year7 !. 3erforman&e is $etter next year.


23

B. 3erforman&e is worse next year. C. 3erforman&e is diffi&ult to predi&t next year. ?. 3erforman&e is the same next year. 1#. Based on the Huidelines of Unit Trust7 how many days should set aside as &oolingoff period, !. Must not more than 2 $usiness days. B. Must not less than 2 $usiness days. C. Must $e e*ual to 2 $usiness days. ?. Must not e*ual to 2 $usiness days. 1%. +hi&h of the following go)erned the operation of the Unit Trust '&heme, !. Huidelines of Unit Trust '&heme C. ?eed B. 'e&urities Commission ?. !ll of the a$o)e 1(. n)estor ! has a total in)estment of :M#/7666 in a Unit Trust '&heme. !ssuming he has $orrowed up to maximum margin of finan&ing for his in)estment7 how mu&h he has $orrowed, !. :M1275/6 C. :M2"7"6" B. :M((7552 ?. :M1(7552 1/. Mr. 'imon holds /7666 units of Fund RS $efore unit split of 14# with an in)estment )alue of :M167 666.66. !fter the unit split issue7 his Fund RS a&&ount will has !. #7/66 units at in)estment )alue of :M167666.66 B. /7666 units at in)estment )alue of :M1/7666.66 C. 57/66 units at in)estment )alue of :M1/7666.66 ?. 57/66 units at in)estment )alue of :M167666.66 12. +hi&h type of unit trust fund is most &ommonly found in Malaysia, !. 3roperty C. E*uity B. slami& ?. Fixed n&ome 15. The initial ser)i&e &harge is also 0nown as !. Upfront &harge B. Forward fee

C. Management fee ?. !nnual &harge

1;. +ith the rate of return (7 how long does it ta0e from :M1667 666 to $e&ome :M#667 666, !. 1; years C. 1" years B. 1;./ years ?. 15./ years 1". The manager of a unit trust s&heme has the following responsi$ilities7 ex&ept !. Own all the assets of the trust. B. ?aytoday management of the assets. C. ?istri$ution of units. ?. Cal&ulation of unit pri&es. #6. f gi)en tax rate of 1/ and inflation rate of (7 what is the effe&ti)e rate of return after tax and inflation, !ssume that the return rate is 16. !. %./ C. (./ B. ;./ ?. 2./ #1. ! prospe&tus is  !. ! do&ument to pro)ide all ne&essary information7 whi&h should $e read $y all prospe&ti)e in)estors. B. 3repared $y the n)estigating !&&ountant. C. ! legal do&ument that outlines the rights and o$ligations of all parties in)ol)ed in a unit trust fund. ?. ! mar0eting do&ument that outlines the mar0eting plan of a unit trust fund. ##. In)estment $en&hmar0J is !. Fund management o$-e&ti)e that sele&ts se&urities $ased on a spe&ified 'to&0 Ex&hange Composite ndex. B. ! standard measurement for &omparing in)estment performan&e. C. 'hifting in)estment portfolio from sto&0s to fixedin&ome se&urities. ?. ! strategy that entails $uying low and selling high. #%. For the repur&hase of the unit trust in)estment7 pro&eeds shall $e paid within !. 16 &alendar days C. 2 $usiness days B. 16 $usiness days ?. 8ot more than 2 $usiness days #(. The a&tual management fee &harged or ranged of fees &harged has to $e dis&losed in the  of the respe&ti)e Unit Trust '&heme. !. ?eed C. Mar0eting material


24

B.

3rospe&tus

?. !ll of the a$o)e

#/. +hat is the ris0 of an in)estor who dire&tly in)esting in a small num$er of shares, !. The in)estor is exposed to the ris0 of either ma0ing or losing large portion of his in)estments. B. The in)estorsG $enefit from di)ersifi&ation of portfolio. C. The in)estor is a$le to &onsistently reap high returns from the in)estment. ?. t is easy for in)estor to sele&t good &ompany. #2. +hat is the main role of 3?UT in mar0eting and distri$ution of unit trust funds, !. To re&ei)e &ommissions. B. To sell unit trusts without &omplete understanding of unit trusts in)estments C. To ad)ise on stru&ture and types of unit trust funds. ?. To meet sales target. #5. The following guidelines are to $e &omplied $y management &ompanies in respe&t of agen&y stru&ture and sie E)CE*T !. ! Hroup !gen&y manager is not allowed to set up an agen&y offi&e. B. !n agent is not allowed to &ondu&t re&ruitment. C. The num$er of tiers in an agen&y stru&ture must not ex&eed ( tiers. ?. The sie of a Unit must not ex&eed /6 persons at all times. #;. Aump sum in)estment nitial ser)i&e &harge Ongoing management fee :ate of return !. B.

4 :M1667 666.66 4 / 4 1./ 4 16

+hat is the )alue of the in)estment after % years, :M;;7 (2".16 C. :M;"7 (2".16 :M1667 2;5.(6 ?. :M1#17%(#.(5

#". n 1";67 :M6.16 &ould $uy ( sweets. But7 now >#6667 :M6.16 &an only $uy # sweets. +hat is the inflation rate for these #6 years, !. (./  C. 1;  B. %.2  ?. 5.#  %6. Henerally7 the forms of return from a unit trust fund are  . ?istri$ution . Unit split . Capital appre&iation 9. nterest !. B.

   7   

C. 7   9 ?. !ll of the a$o)e

%1. +hi&h of the following $ody maintain the registration of unitholders, !. 'C C. UTMC B. FMUTM ?. Trustee %#. +hi&h of the following is the in)estment $elongs to I!ggressi)e Hrowth FundJ, !. Money Mar0et C. 'hares of te&hnology listed in KA'E B. Fixed n&ome 'e&urities ?. Capital guaranteed life insuran&e %%. +hat are the responsi$ilities of UTMC, . 3ro&ess appli&ation forms for unitholders . Custodian of assets . Unitholders r egistration 9. :egulate unit trust industry !. B.

     

C.   9 ?.   9

%(. +hi&h of the following responsi$le to appoint auditor for a unit trust s&heme, !. Trustee C. FMUTM B. UTMC ?. !&&ountant %/. Aast year expenses for ChanGs family were :M#67 666.66. This year expenses were :M#17 (66.66. !ssuming the inflation rate un&hanged for next year7 what is the amount of expenses estimated for next year, !. :M##7 ;"; C. :M#(7 #// B. :M#%7 ;66 ?. :M#/7 #//


25

%2. +hi&h of the following is the best +eatu!e to highlight to the unitholders when going through the prospe&tus, !. Key data C. n)estment o$-e&ti)es B. Fund performan&e ?. !ll of the a$o)e %5. 8!9 of !BC fund $efore distri$ution de&lared was 16% sen. The distri$ution pay out is 2 sen and unit split is / units for e)ery 166 units. +hat is the 8!9 per unit for Exdistri$ution and postunit split, (Round up to the nearest 1 sen ) !. "# sen C. "" sen B. 166 sen ?. 115 sen %;. !manah 'aham Mara Bhd laun&hed  in  !. Mara Bumiputra Fund7 1"5( C. !manah 'aham Mara7 1"51 B. First Mara Bumiputra Fund7 1"25 ?. First Bumiputra Fund7 1"2/ %". +hi&h of the following is not the &ommittee in FMUTM, !. Edu&ation  Conferen&e C. n)estor Edu&ation B. Tax  !&&ounting ?. Ethi&s  Complian&e (6. Below are the ad)antages of in)esting in unit trust7 ex&ept !. 3rofessional management C. Ai*uidity B. ?i)ersifi&ation ?. 8o &ontrol of $uying  selling of share mar0et. (1. ?ollar Cost !)eraging 3rin&iple means !. :egular in)estment with fixed amount of money. B. :egular in)estment with fixed amount of units. C. :egular in)estment with lowest amount of money. ?. :egular in)estment with lowest amount of units. (#. Below are &losedended fund features7 ex&ept !. 3roperty trust fund is not a &losedended fund. B. 3ri&es flu&tuate throughout the day from time to time. C. n)estors &an only trade their units through ex&hange. ?. Aisted fund is a &losedended fund. (%. +hen was FMUTM set up, !. 5 !ugust 1""% B. %6 8o)em$er 1""/

C. 5 !ugust 1""/ ?. %6 8o)em$er 1""%

((. +hi&h of the following affe&t the effe&ti)e rate of return, . Hearing < Ae)eraging . Taxation . nflation !. B.

     

C.    ?. !ll of the a$o)e

(/. The &ontents of prospe&tus in&lude . Expiry date . n)estment o$-e&ti)e . n)estment strategy 9. Transa&tion information 9. :ules of unit trust industry 9. !uthoried in)estment 9. !uditorGs report !. B.

7 7 7 97 9 7 7 7 97 9

(2. Management fee Trustee fee !uditorGs fee Ban0 Charges  others

C. 7 7 97 97 9 ?. 7 7 7 97 9 4 :M%#7 666 4 :M 57666 4 :M 17#66 4,

Dow mu&h are the $an0 &harges  others7 if gi)en ME:  1.%; and a)erage fund sie  :M%7 1117/66, !. :M#7;66.66 C. :M%75%;.56 B. :M#75%;.56 ?. :M%7;66.66


26

(5. 8ame the first totally Malaysian unit trust fund. !. First Malayan Fund B. Malaysian n)estment Fund

C. First Malaysia Fund ?. Malayan n)estment Fund

Fo! ,uestion -./ -9  50

On #/ !pril #6667the status of Fund RS at the &losed of $usiness day is as $elow4 8!9 Units in &ir&ulation nitial ser)i&e &harge 3ri&ing Method

4 :M"67 6667666 4 567 6667666 units 4 / 4 Forward

(;. +hat is the selling pri&e for Fund RS that will $e pu$lished in the following day, ! :M 1.%/ C. :M 1.(/ B.:M 1.#" ?. :M 1.%" (". f Miss ! is preparing to in)est :M%/7 666 on #/ !pril #6667 how many units does she entitle to re&ei)e, !. #27 "#/."% units C. #27 11".(6 units B. #/7 "#/."% units ?. #/7 11".(6 units /6. f Mr. B is selling /7666 units on #/ !pril #6667 how mu&h will he gets, !ssume that no repur&hase fee is &harge. !. :M 27 %#;./6 C. :M 27 5/6.66 B. :M 27 (/6.66 ?. :M 27 ;66.66 /1. For unlisted unit trusts7 the sales and repur&hases of units are transa&ted with4 !. The sto&0$ro0er. C. The trustee B. The unit trusts fund manager. ?. The remisier /#. The following are the &hara&teristi&s of slami& Fund7 ex&ept4 !. slami& unit trusts need to in)est in a&&ordan&e with the 'yariah 3rin&iple. B. n)estors ha)e to o$tain the appro)al from the 'yariah !d)isors $efore they are allowed to in)est in an slami& Unit Trust. C. :eturns of the slami& Unit Trust will a)oid Iri$aJ. ?. The sto&0s of slami& Unit Trusts will ex&lude &ompanies in)ol)ed in a&ti)ities7 produ&ts or ser)i&es related to &on)entional $an0ing7 insuran&e7 finan&ial ser)i&es7 gam$ling7 al&oholi& $e)erage and nonhalal food produ&ts. /%. 8ame the first state unit trust fund7 whi&h was open to nonBumiputra in)estors. !. !manah 'aham 3ahang B. !manah 'aham +awasan #6#6 C. ?ana @ohor ?. !manah 'aham B'8 /(. 3lease &hoose the &orre&t statement a$out the ?eed for unit trust funds. !. t shows the rights and o$ligations of the Manager7 the rights and duties of the Trustee and the rights of the Unitholders. B. The 'C is lia$le to stru&ture the ?eed for ea&h s&heme laun&hed $y ea&h UTMC. C. n the e)ent that the 'C does not appro)e the prospe&tus7 the ?eed may $e used as a repla&ement. ?. !n appointed Trustee is responsi$le for the issuan&e of the ?eed. //. To meet the &hallenges posed $y the new sophisti&ated &ustomers7 3?UT must stri)e to do the following7 ex&ept !. Maintain high ethi&al standards in their mar0eting. B. Finetune their produ&t 0nowledge. C. Dard sell ?. !&*uire suita$le professional *ualifi&ation. /2. The statement $elow is a$out managing &ustomersG expe&tation. +hi&h of them is not &orre&t, !. To manage &ustomerGs expe&tation7 the sales pro&ess has to in&lude &omments and a full explanation of the )arious ris0s asso&iated with in)estment in unit trusts. B. +e should raise our &lientsG expe&tation a$out unit trust in)estment $e&ause it is essentially an in)estment &hannel that promises high7 extraordinary return. C. n managing our &lientsG expe&tations7 we will need to let them 0now what exa&tly they are $uying. +e will ha)e to ma0e them aware of $oth the $enefits and ris0s in in)esting unit trusts. ?. f the &ustomersG expe&tations are met7 they will most pro$a$ly $e satisfied. /5. !&&ording to the Huidelines on Unit Trusts7 all of the $elow are true ex&ept


27

!. B.

The UTMC needs to pu$lish only the daily selling pri&e and repur&hase pri&e in daily ma-or newspapers. The UTMC must pay the pro&eeds of the repur&hase of units to the unitholders at most within 16 days of re&ei)ing the repur&hase re*uest. C. The UTMC must pro)ide e)ery in)estor with a &ooling off right of not less than 2 Business days. ?. The initial offer period of any new fund must not ex&eed #1 days.

/;. The sie of a unit of an agen&y must not ex&eed  persons at all time. ! unit &omprises of a I'uper)isorJ>defined as the upper three tiers and his
?eed and 3rospe&tus must $e appro)ed $y 'C C. UTMC FMUTM ?. !ll of the a$o)e

#. The 3rin&iples of Code of Ethi&s in&lude . Donesty7 ?ignity  ntegrity . Fair ?ealing . Hood Faith 9. Charming !. B.

7 7  7 7 9

%. !. B.

+hen someone who thin0s that mar0et pri&e will fall is &all as  mar0et. Bull C. Cow Bear ?. ?eer

(. !. B.

n general7 whi&h of the following is highly illi*uid, Unit trusts C. 'hare Fixed deposit ?. 3roperty

/. !. B.

!ll assets of a unit trust s&heme as held under the name of  for safe0eeping. n)estment Committees C. Fund Manager Trustee ?. Unitholders

2. !. B.

The ris0 of finan&ing in in)estment of unit trusts is
5. !. B.

The unit trust prospe&tus is prepared $y Unit Trust Management Company Trustee


C. 7 7 9 ?. !ll of the a$o)e

C. !uditor ?. 'e&urities Commission

28

;. !. B. C. ?.

+hi&h of the following is not the responsi$ility of the unit trust manager, 3ro)ides repur&hase fa&ilities :e&ommends the pur&hase and sale of assets. 'uper)ises the operations. 'er)i&es the unitholders.

".

! unit trust fund de&lared a gross distri$ution of 16 sen per unit. The 8!9 &um distri$ution is :M#/67 6667666 and units in &ir&ulation  #6676667666. +hat is the 8!9 per unit for exdistri$ution, :M1.1/ C. :M1./6 :M1.1% ?. :M1.%6

!. B.

16. !n in)estor would li0e to in)est in a fund whi&h &losely resem$les the performan&e of sto&0 mar0et. +hi&h fund would you re&ommend to the in)estor, !. Hrowth fund C. ndex fund B. n&ome fund ?. Bond fund 11. !. B. C. ?.

+hat is the meaning of forward pri&ing, Transa&tion done $ased on the pri&e7 whi&h will $e determined at the end of the day. Transa&tion done $ased on the pri&e7 whi&h was determined yesterday. Transa&tion done $ased on the pri&e7 whi&h was determined at the opening of the sto&0 mar0et. Transa&tion done $ased on the pri&e7 whi&h will $e determined at the $eginning of the wee0.

1#. n)estor M has $orrowed up to maximum margin of finan&ing to in)est in Fund !BC. 8ow7 his total in)estment amount e*ual to :M#/67 666.66. 'o7 how mu&h he has for0ed from his own po&0et to in)est in it. !. :M 1/67 666 C. :M;#7 /66 B. :M ;57 /66 ?. :M1257 /66

1%. !. B. C. ?.

The primary o$-e&ti)es of FMUTM may $e summaried as follows7 ex&ept To set up as many unit trust &ompanies as possi$le7 so that in)esting pu$li& will ha)e more options for sele&tion. To pro)ide information7 assistan&e and other ser)i&es to its mem$ers. To impro)e the regulatory7 fis&al and legal en)ironment for unit trusts. To promote pu$li& awareness of the $enefits and the ris0s of in)esting in unit trust.

1(. !. B. C. ?.

The following is >are the &ommon $en&hmar0s for returns from unit trust in)estment. Fixed deposit interest rate. KA'EC E3F di)idend rate !ll of the a$o)e.

1/. IFixedn&ome Unit TrustsJ mainly in)est in . Corporate Bonds . Dighly growth sto&0s . Ho)ernment 'e&urities 9. Ai*uid 'e&urities !. B.

7 7  7 7 9

C. 7 7 9 ?. 7 7 9

12. !. B. C. ?.

Below are the minimum standards for registration of 3?UT7 ex&ept Must $e at least 1; years old. Must possess at least Hrade % 'i-il 3ela-aran Malaysia >'3M or its e*ui)alent as determined $y the FMUTM. Must not $e found $y the &ourt or other &ompetent authority to ha)e a&ted fraudulently or dishonestly. Must not $e &on)i&ted of any &riminal offen&e.

15. For loan finan&ing7 the distri$ution de&laration will $e  !. Hi)en to Finan&ial nstitution C. Hi)en to Management &ompany B. Hi)en to n)estor < Borrower ?. :ein)est 1;. !. B. C. ?.

+hat is the purpose of unitsplit, To distri$ute in&ome to the in)estors. To &reate more units in order to lower the unit pri&e so as to ma0e the units more afforda$le to new entrants. To fulfill the re*uirement spe&ified $y the FMUTM To fulfill the re*uirement spe&ified $y the 'e&urities Commission.


29

#$C% Q&EST'$(S D

1.

+hat does ME: of 1.26 per annum mean, ! t means the fund &arries an expense of :M12.66 for e)ery :M17666.66 of the a)erage 8!9 of the fund during that finan&ial year. B t means the fund &arries an expense of :M6.612 for e)ery :M17666.66 of the a)erage 8!9 of the fund during that finan&ial year. C t means the fund &arries an expense of :M1.26 for e)ery :M17666.66 of the a)erage 8!9 of the fund during that finan&ial year. ? 8one of the a$o)e.

#.

!n in)estor would li0e to in)est :M%/7666 in !B E*uity Fund. f he is ta0ing the maximum margin of loan finan&ing as spe&ified in the Huidelines on Unit Trust Funds7 what will $e the minimum amount that he has to prepare on his own to in)est in !B E*uity Fund, ! :M117//6 C :M1%7266 B :M1"7666 ? :M#%7%%% Fo! ,uestion 3 to "/ pease to te tabe beo:4

The following are RS Fund pri&es at the &losed of the respe&ti)e $usiness day. ?ate 1 ?e& #66% >Mon # ?e& #66% >Tues % ?e& #66% >+ed

8!9 per unit >:M 6.""#1 6.""6% 6.""#/

Buying 3ri&e >:M 6.""#1 6.""6% 6.""#/

'elling 3ri&e >:M 1.6(15 1.6%"; 1.6(#1

!ssuming the &ompany is adopting Forward 3ri&ing poli&y and o$ser)es the minimum &oolingoff period as stipulated in the Huidelines of Unit Trust '&heme.

%

On # ?e& #66%7 Ci0 :ohana in)ested :M1/7666 of her spare &ash into the fund. Dow many units will she gets, ! 1#7%#/.// units C 1%7;"2.%/ units B 1(7(#/.;/ units ? 1/711;.2/ units

(.

?ue to emergen&y7 Ci0 :ohana needs to redeem all her in)estment in RS Fund. +hen is her last day to exer&ise her &oolingoff right, ! ; ?e& #66% >Mon C " ?e& #66% >Tues B 16 ?e& #66% >+ed ? 11 ?e& #66% >Thurs

/.

Mr. :amasamy7 an existing unitholder redeemed his #%7(/6.26 units of RS Fund on % ?e& #66%. Dow mu&h pro&eeds he will re&ei)e, ! :M#%7#5(.5# C :M#(7(66.66 B :M%17161.#6 ? :M%67116.66

2.

f Mr. :amasamy $ought the a$o)e stated units at :M6.;;#/ exa&tly a year ago7 what is his raw return of his in)estment for the entire period, ! 16.1# C 1#.(2 B 1%.;6 ? 1(.11

5.

+hat is the rate of return an in)estor should loo0 for in order for his
;.

Miss Aee $ought 17666 units of !! Fund offered $y &ompany RS. n fa&t7 what has Miss. Aee $ought, ! 17666 units of shares of Company RS. B 17666 units of shares of a su$sidiary &ompany of Company RS7 whi&h &arries the name of I!! FundJ. C 17666 units of !! Fund7 whi&h is managed $y Company RS and in)ested in a di)ersified portfolio as spelled out in the ?eed. ? 17666 units of !! Fund7 whi&h is managed $y Company RS. n other words7 the fund is in)ested in Company RS and its su$sidiary &ompanies7 as laid out in the ?eed.

".

3lease &ompute the ME: for RS Fund7 gi)en Management fee Trustee fee Cost of printing annual report


:M1/7666 :M5#6 :M/16

30

Cost of printing interim report !uditor fee Cost of appointing 'yariah Committee Other expenses in&urred $y the fund !)erage fund sie of Fund RS ! 1.22 B 1.;;

:M/16 :M#66 :M;7666 :M/7666 :M17%#67666 C #.66  ? #.#5 

16. f gi)en tax rate of 1; and inflation rate of %7 what is the effe&ti)e rate of return after tax and inflation, !ssume that the return rate is 16. ! %./ C /.# B (./ ? 2.#

11. Mr. Chan in)ested in Fund 3 and he is in)esting regularly with the ?ollar Cost !)eraging 3rin&iple. Hi)en the following information7 &al&ulate the a)erage &ost per unit for Mr. Chan. (Round up to nearest 4 decimal points) Date %6 'ept #66% %1 O&t #66% #; 8o) #66% %1 ?e& #66%

Seing *!ice :M6.2621 :M6.2#;/ :M6.2#%% :M6.26";

! :M6.212; B :M6.212"

'nest6ent A6ount :M17666 :M17666 :M17666 :M17666

C :M6.2156 ? :M6.2151

1#. En&i0 :amli holds /7666 units of !B Fund $efore unit split of 14/ with an in)estment )alue of :M1;7666. !fter the unit split issue7 his in)estment a&&ount of Fund !B will &onsists of ! (7666 units at in)estment )alue of :M1/7666 B /7666 units at in)estment )alue of :M#17266 C 27666 units at in)estment )alue of :M1;7666 ? 57666 units at in)estment )alue of :M#17266 Fo! ,uestion 13 to 1"/ pease !e+e! to te +ooing:4

8!9 &umdistri$ution of 3Q Fund is :M1#676667666 and units in &ir&ulation is 1/676667666 units. The fund de&lared distri$ution of :M6.6; per unit7 nitial 'er)i&e Charge is 2. 1%. +hat is the &umdistri$ution 8!9 per unit of Fund 3Q, ! :M.;666 C :M6.5666 B :M6.5#66 ? :M6.;#66 1(. +hat is the exdistri$ution 8!9 per unit of Fund 3Q, ! :M6.;666 C :M6.5666 B :M6.5#66 ? :M6.;#66 1/. +hat is the exdistri$ution selling pri&e, ! :M6.5666 B :M6.;(;6

C :M6.;//# ? :M6.52%#

12. !n in)estor in)ested :M167666 in 3Q Fund after the de&laration of distri$ution. Dow many units the in)estor will get, ! 1%716#.5% units C 1175"#.(/ units B 1(7#;/.51 units ? 1172"%.15 units 15. !n in)estor had in)ested lump sum in a s&heme with the selling pri&e :M6./666 per unit. Three years later7 he de&ided to redeem his in)estment at $uying pri&e of :M6.;/66 per unit and the total pro&eed is :M#7//6. Dow mu&h did he in)est three years ago, ! :M #7;;6.66 C :M17/66.66 B :M17"#6.66 ? :M17#66.66 1;. Aump sum in)estment nitial ser)i&e &harge Ongoing management fee :ate of return

4 :M;67 666.66 4 2 4 1.; 4 16

+hat is the )alue of the in)estment after 16 years, ! :M;;7 (2".16 C :M;"7 (2".16 B :M1667 2;5.(6 ? :M12/7%;#.;(


31

1". !BC Fund had de&lared a unit split of 14(. The preunit split of 8!9 per unit was :M1.#666. Total units in &ir&ulation $efore the split were 16676667666 units. The fund &harges a ser)i&e fee of / per unit and repur&hase fee of 1 per unit. +hat is the managerGs postunit split selling pri&e, ! :M1.66; C :M6."266 B :M6."";( ? :M1.#266 #6. 8et !sset 9alue of !CR Fund $efore distri$ution de&lared was "6 sen. The distri$ution pay out is 5 sen and unit split is ( units for e)ery 166 units. +hat is the 8!9 per unit after the distri$ution and unit split, >:ound up to the nearest 1 sen ! "; sen C "" sen B 5" sen ? ;6 sen


32

#$C% Q&EST'$(S SET E

1.

On ;th ?e&em$er #66% >Monday7 the pu$lished selling pri&e of Fund RS is :M6.;(; and $uying pri&e is :M6.;66. On the same day7 the selling pri&e at the &losed of the $usiness day is :M6.;2" and $uying pri&e is :M6.;#. Hi)en the a$o)e information7 if an in)estor would li0e to in)est :M#67666 on that day7 how many units will he
#.

n 1";67 Ti& Ta& &andy &ost a$out :M6.56. But in year #6667 a $ox of Ti& Ta& already in&reased to :M1.(6. +hat is the inflation rate for these #6 years, ! (./  C 1;  B %.2  ? 5.# 

%.

Aast year7 the +ongGs family spent a$out :M267666 as family expenses and this they spent a$out :M2%7666. !ssuming o)erall )alue of &onsumption remains un&hanged7 howe)er the inflation rate in&reased to another 1. Dow mu&h money do they need to spend for next year to maintain the same standard of li)ing as this year, (Round up to nearest 1 ringgit) ! :M2/71#6 C :M257(/6 B :M2275;6 ? :M567/;6

Fo! Question - to ./ pease !e+e! to as state7 beo:4

Finan&ial year end of Fund 7 %1 O&t #661 4 8et !sset 9alue 4 :M#66 Million Units in &ir&ulation 4 %66 Million 'er)i&e Charge 4 2./ n&ome distri$ution 4 ( sen per unit Unit 'plit 4 # 4 / (Unit price round up to nearest 3 decimal points) (.

+hat is the units in &ir&ulation after in&ome distri$ution and unit split, ! Un&hanged C %;6 Million units B (#6 Million units ? /%6 Million units

/.

+hat is the 8!9 per unit exdistri$ution and postunit split, ! :M6.225 C :M6.2#5 B :M6.(52 ? :M6.((;

2.

+hat is the 'elling 3ri&e as at %1 O&t #661, ! :M6.(/2 B :M6.516

C :M6.(55 ? :M6.22;

5.

+hat is the Buying 3ri&e7 assuming there is a repur&hase of 1, ! :M6.((( C :M6.(/5 B :M6.562 ? :M6.5#6

;.

!n in)estor in)ested :M1;7666 of his E3F money into Fund  on %1st O&t #6617 how many units will he gets, ! %575%/.;/ units C %;7%;2.%5 units B %57#5;.(" units ? %;75/2."; units

".

+hat are the impa&ts to 8!9 and Units in &ir&ulation due to in&ome distri$ution, ! Both 8!9 and Units in &ir&ulation will in&rease. B 8!9 with in&rease and Units in &ir&ulation will de&rease. C 8!9 will de&rease and Units in &ir&ulation remain un&hanged. ? 8!9 will remain un&hanged and Units in &ir&ulation will in&rease.

16. +hat are the impa&ts to 8!9 and Units in &ir&ulation due to unit split, ! Both 8!9 and Units in &ir&ulation will in&rease. B 8!9 with in&rease and Units in &ir&ulation will de&rease. C 8!9 will de&rease and Units in &ir&ulation remain un&hanged. ? 8!9 will remain un&hanged and Units in &ir&ulation will in&rease. 11. ?ollar Cost !)eraging prin&iple is referring to regular in)estment with fixed amount of money. +hat is the a)erage &ost per unit as at $elow, >:ound up to nearest 1 sen


33

Date Buying *!ice @an #66% Fe$ #66% Ma& #66%

Seing *!ice

:M6./6 :M6.// :M6./%

! :M6./2 B :M6.21

'nest6ent a6ount :M6./% :M17#66 :M6./; :M17#66 :M6./2 :M17#66

C :M6./; ? :M6.2%

1#. !n in)estor has $orrowed up to maximum margin of finan&ing to in)est into Fund BB. Dis total in)estment amount is :M1#67666. Dow mu&h he has for0ed out from his own po&0et to in)est in it, ! :M((7266 C :M%;72(5 B :M%"7266 ? :M(#725; 1%. Hi)en tax rate is 1/ and inflation rate of ( and estimated return rate of 11 what is the effe&ti)e rate of return after tax and inflation, ! /.%/ C ;.5/ B 2."# ? 5.6/ 1(. Management Fee Trustee fee !uditorGs fee Ban0 &harges and others

48 4 :M57/66 4 :M#7;66 4 :M27666

!)erage Fund 'ie ME:

4 :M%766#7/;6 4 1.;1

Hi)en the a$o)e information7 please &al&ulate the Management Fee. A) :M%27%;5.%6 C :M%;76(2.56 B) :M%576";.(6 ? :M%"7%2/.(6 1/. +hat is the maximum offer period of a newly laun&hed fund, ! 5 days C #1 days B 1( days ? 1 month 12. Ci0 'iti in)ested lump sum :M#67666 in Fund !BR ; years ago. !ssuming the fund is gi)ing an a)erage return of 16 for the last ; years. The fund is &harging upfront fee and annual management fee of 2 and 1.2 respe&ti)ely +hat is the )alue of her in)estment after ; years, ! :M%/7;(1."" C :M(672("./2 B :M%;7%5/.5; ? :M(17"%5.%" 15. Miss Cheah has a&&umulated 1#7666 units $efore unit split at the )alue of :M27666. !fter the unit split of 14(7 she has ! 1#7666 units at the )alue of :M57/66 B "7266 units at the )alue of :M27666 C 1#7666 units at the )alue of :M(7;66 ? 1/7666 units at the )alue of :M27666 Fo! ,uestion 1./ 19 an7 20 On #/ !pril #6667 the status of Fund RS at the &losed of $usiness day is as $elow4

8!9 Units in &ir&ulation nitial ser)i&e &harge 3ri&ing Method >:ound up to nearest 1 sen

4 :M;676667666 4 ;/76667666 units 4 / 4 Forward

1;.+hat is the selling pri&e for Fund RS that will $e pu$lished in the following day, ! :M 1.%/ C :M 6."" B :M 1.#" ? :M 6.;5 1". Miss would li0e to in)est :M#67666 on #/ !pril #6667 how many units is she entitle to re&ei)e, C. #67#6#.6# units C #27 11".(6 units ?. #/7 "#/."% units ? #/7 11".(6 units #6. f Mr. B is selling /7666 units on #/ !pril #6667 how mu&h will he gets, !ssume there is no repur&hase fee is &harge. ! :M %7;"6 C :M /75/6 B :M (7566 ? :M 27;66


34

#$C% Q&EST'$(S SET F

1.

 is the first totally Malaysia unit trust fund laun&hed $y  in  !. Malaysia n)estment Fund7 !sia Unit Trust Bhd7 1"22 B. First Malaysia Fund7 Malayan Unit Trust Aimited7 1"2/ C. Malaysian n)estment Fund7 !sia Unit Trust Bhd7 1"2/ ?. First Malayan Fund7 Malayan Unit Trust Aimited7 1"/"

#.

ME: of Fund !BC is 1.517 whi&h means  !. Fund !BC &arries an expense of :M1.51 for e)ery :M17666.66 of the a)erage 8!9 of the fund during that finan&ial year end. B. Fund !BC &arries an expense of :M6.151 for e)ery :M166 of the a)erage 8!9 of the fund during that finan&ial year end. C. Fund !BC &arries an expense of :M151 for e)ery :M166.66 of the a)erage 8!9 of the fund during that finan&ial year end. ?. Fund !BC &arries an expense of :M15.16 for e)ery :M17666.66 of the a)erage 8!9 of the fund during that finan&ial year end.

%.

Mr. ! would li0e to in)est in a unit trust fund7 whi&h &losely resem$les the performan&e of KAC. +hi&h unit trust fund would you re&ommend to him, !. Hrowth fund C. ndex fund B. n&ome fund ?. Bond fund

Fo! ,uestion - an7 5

nitial in)estment Estimated a)erage return Ongoing management fee nitial ser)i&e &harge (.

4 :M/67666 4 16 per annum 4 1./ 4 /

+hat will $e the expe&ted return for / years, !. :M517(#%.2" B. :M5%7%2(.("

C. :M5(7#;%.%5 ?. :M5(7/2%.;5

/.

!ssuming the ongoing management fee in&reased to 1.;. +hat is the expe&ted )alue of in)estment in 16 years, !. :M1667%/2./; C. :M1627%5;.%6 B. :M16(7(2%."6 ?. :M16;7%5;.%"

2.

The FMUTM &oun&il &onsists of  ele&ted mem$ers. !. eight C. ten B. nine ?. ele)en

5.

+ho are the parties of a unit trust s&heme, . UTMC . Trustee

. Unitholders 9. Fund Managers

!.    B. 7 

C. 7    ?. 7   9

;.

Date @an #66% Fe$ #66% Ma& #66%

Seing *!ice :M6.;/#6 :M6.;%;" :M6.;2%/

'nest6ent a6ount :M17666 :M17666 :M17666

+hat is the a)erage &ost per unit for this in)estor who in)ested regularly on monthly $asis, !. :M6.;/1% C. :M6.;21% B. :M6.;/1/ ?. :M6.;21/ ".

n)estors are allowed to withdraw from one of their E3F a&&ount for in)estment in unit trust. +hi&h of the following is true a$out E3F, !. !&&ount One with minimum :M1667666 B. !&&ount One with minimum :M//7666 C. !&&ount One with minimum : M//7666 and !&&ount Two with minimum of :M167666 ?. !&&ount One and Two with minimum :M//7666


35

16. / years ago7 Mr. Cheong $ought his dou$le storey house at :M1/67666. 8ow7 his house worth a$out :M%667666. Dis house )alue has appre&iated tremendously for the last / years. +hat is the per&entage of &apital appre&iation of his house, !. 16./ C. 1%.# B. 11.; ?. 1(.( 11. 8!9 per unit of Fund ! is :M6."/7 Management fee is 1.27 ser)i&e &harge is /./7 repur&hase fee is 1 and Trustee fee is 6.5/. Cal&ulate the $uying pri&e of Fund !. >:ound up to nearest % de&imal points !. :M6."%6 C. :M6."/( B. :M6."(1 ?. :M6."2# 1#. On Thursday7 1( 'eptem$er #6667 the pu$lished selling pri&e per unit was :M6.;/. The 8!9 per unit was :M6.;1. The selling pri&e per unit at the end of the $usiness day was :M6.;5. !n in)estor would li0e to in)est :M#67666 on the same day. Dow many units that heBased on forward pri&ing !. 1572(5.62 units C. 127222.25 units B. #%7/66.66 units ?. ##7";;./1 units 1% +hi&h type of unit trust fund &ommonly found in Malaysia, !. E*uity funds C. Bond funds B. slami& funs ?. 3roperty trust funds 1( One of the features of listed funds is  !. The num$er of units is unlimited. B. The pri&es are determined $y the fund manager. C. Aisted funds are traded on a sto&0 ex&hange. ?. 8one of the a$o)e. 1/. +hi&h of the following go)erned the operation of Unit Trust '&heme, !. Huidelines of Unit Trust '&heme C. 'e&urities Commission B. ?eed ?. !ll of the a$o)e 12. ?uring the finan&ial end7 Fund 3CK de&lared unit split of e)ery 1/ units will $e entitled for # free units. !nd also a distri$ution of / sen. Before the de&laration7 8!9 per unit of Fund 3CK is :M1.61. f gi)en the ser)i&e &harge of / and repur&hase fee of 17 what is the 8!9 per unit after $oth unit split and distri$ution, !. :M6.;(1 C. :M6."(1 B. :M6.;(5 ?. :M6."(5 Fo! ,uestion 1 to 20:4

On %1 @uly #66%7 units in &ir&ulation of Fund !BC is 1/676667666 and net asset )alue of :M1#676667666. The fund de&lared distri$ution of 16 sen. 'er)i&e &harge of the fund is / and there is no repur&hase in&urred. 15. +hat is the exdistri$ution 8!9 per unit of Fund !BC, !. :M6.566 C. :M6."66 B. :M6.;66 ?. :M1.666 1;. +hat is the selling pri&e of Fund !BC, !. :M6.5%/ B. :M6.5/2

C. :M6.;6# ?. :M6.;11

1". Miss Aau7 an in)estor of Fund !BC for the past 16 years. 'he de&ided to redeem all her units to pay for her house downpayment, +hat is her pro&eeds if she has %/7666 units in her unit trust a&&ount, !. :M#67266 C. :M#;7"56 B. :M#(7/66 ?. :M%67;%5 #6. +ith the pro&eeds she re&ei)ed7 what is her total return if she initially in)ested :M1#7666 ten years ago, !. "6.; C. 16(.# B. ";.( ?. 116./ #1. The main purpose of the IHuidelines on Unit trustsJ is to !. ?eal with strategi& impli&ation of intera&tion de)elopment to o)erall Malaysian &apital mar0et. B. 3rote&t and safeguard the interest of the in)esting pu$li&. C. 3rote&t and safeguard the interest of Unit Trust Management Company. ?. Ensure these in)ol)ed in selling unit trust are a$le to ma0e a de&ent li)ing. ##. For unlisted unit trust7 the sales and repur&hase of units are transa&ted with !. The 'to&0$ro0er C. The Trustee


36

B.

The UTMC

?. The :emisier

#%. ! unit trust that has a fixed num$er of shares that &an $e issued is 0nown as !. !n openended fund C. ! &losedended fund B. ! uni)ersal trust ?. ! regional fund #(. The prospe&tus of a new UT' need to $e appro)ed $y  !. 'e&urities Commission C. Unit Trust Management Company B. Trustee ?. FMUTM #/. Unit Trust Management Company may &harge a maximum rate of annual fee of  !. 1./ C. 1.; B. 1.2 ?. !s permitted $y the ?eed of the UT'. #2. ?istri$ution &an $e deri)ed from the following sour&es4  Capital gain  nterest in&ome  ?i)idend in&ome 9 Management fee !. B.

     

C. 7    ?. !ll of the a$o)e

#5. ME:  , x 166 !)erage Fund 'ie !. B. C. ?.

Total expenses in&urred $y the fund. !)erage expenses in&urred $y the fund Total fees  &harges of the fund. !)erage fees and &harges of the fund

Fo! ,uestion 2. to 30/ !e+e! to as state7 beo #! ee ineste7 at ;#050 te +i!st ti6e Du!ing te secon7 inest6ent/ e ineste7 20/000 units at ;#0"0 ate! on/ e !e7ee6e7 is inest6ent at buying p!ice o+ ;#00 an7 te tota p!ocee7 as ;#1/500

#;. Dow many units does Mr. Aee gets during his first in)estment, !. /7666 units C. 57666 units B. 27666 units ?. ;7666 units #". +hat is his initial in)estment amount, !. :M17/66 B. :M#7666

C. :M#7/66 ?. :M%7666

%6. +hat is the amount that he in)ested after the se&ond transa&tion, !. :M1#7666 C. :M1(7666 B. :M1%7/66 ?. :M1(7/66 %1. +hat is a unit trust s&heme, !. ! form of &olle&ti)e in)estment that allows in)estors with similar in)estment o$-e&ti)es to pool their funds to $e in)ested in a single portfolio of se&urities managed $y professional fund managers. B. ! form of in)estment that the units represent the ownership in a &ompany. C. ! form of in)estment that resem$les a loan s&heme. ?. ! form of in)estment s&heme that allows in)estors in)est in a di)ersified portfolio of se&urities with guaranteed returns. %#. The following des&ri$e the features of ?ollar Cost !)eraging prin&iples7 ex&ept4 . ! systemati& approa&h for shortterm goals depending on the mar0et flu&tuation. . ! systemati& and regular in)estment of fixed amount of money irrespe&ti)e of the unit pri&e. . t assures in)estors to gain more returns. 9. O)er the long term7 the a)erage &ost per unit of their entire in)estment will $e redu&ed. !. B.

7 7  7 7 9

C.   9 ?.   

%%. The pri&es of unlisted trust are $ased on the mar0et supply and demand. !. True C. True for unlisted e*uity funds only B. False ?. False for unlisted e*uity funds only %(. The sour&es of in&ome for 3roperty Trust Fund are


37

!. B.

?istri$ution and &apital appre&iation C. :ental in&ome and &apital appre&iation ?i)idend and interest in&ome ?. :ental in&ome and interest in&ome

%/. +hi&h of the following are the Code of Ethi&s . Donesty . Friendly . ntegrity 9. ?ignity 9. Fair ?ealing 9. Hood Faith !. B.

7 7 7 9  9 7 7 97 9  9

C. 7 7 97 9  9 ?. 7 7 7 9  9

%2. For loan finan&ing7 de&laration of distri$ution will $e  !. :ein)ested C. Hi)en to Finan&ial nstitution B. Hi)en to in)estor ?. Hi)en to Trustee %5. +hi&h of the following is not e*uity fund, !. !ggressi)e Hrowth Fund B. ndex Fund

C. n&ome Fund ?. Fixed n&ome Fund

%;. +hi&h of the following is true a$out selling pri&e, !. 'elling pri&e  8!9 per unit L nitial 'er)i&e Charge B. 'elling pri&e  Buying pri&e L nitial 'er)i&e Charge C. 'elling pri&e  8!9 per unit N nitial 'er)i&e Charge ?. 'elling pri&e  Buying pri&e N nitial 'er)i&e Charge %". Before unit split7 En&i0 !hmad has 1667666 units of Fund !BC. ?uring finan&ial yearend7 Fund !BC de&lared unit split of #45. Dow many units does En&i0 !hmad has, !. 1#;7/51.(% units C. 1##7###.## units B. 1557555.5; units ?. :emain un&hanged (6. !n important part of in&reasing returns of a unit trust s&heme is to $orrow and in)est more in sto&0s. !. The a$o)e statement is true $e&ause it is a $asi& fundamental prin&iple of in)estment. B. This statement is not true $e&ause unit trust s&heme are not allowed to $orrow funds in order to finan&e its in)estment a&ti)ities. C. This statement is true $e&ause in de)eloping &ountry e&onomies7 this is the only ways whi&h fund managers &an guarantee positi)e in)estment returns. ?. 8one of the a$o)e.


38

#$C% Q&EST'$(S – B< C=A*TE;S A> ='ST$;< A(D DE?E$*#E(T

1.

The first unit trust &ompany in Malaysia was esta$lished in the a /6Gs $ 26Gs & 56Gs d ;6Gs

#.

+hat is the name of the first national $umiputera unit trust fund, a First Mara Bumiputera Fund $ !manah 'aham 8asional & !manah 'aham Bumiputera d !manah 'aham ?ana 3ertama

%.

+ho manages the largest unit trust fund in Malaysia, a 3ermodalan 8asional Bhd $ Kuala Aumpur Mutual Fund Bhd & !'M Mara Unit Trust Management Bhd d !sia Unit Trust Bhd

(.

+hat year did 3ermodalan 8ational Berhad laun&h its first Bumiputra fund, a 1"25 $ 1"5/ & 1";1 d 1";2

/.

+ hi&h is the first stateowned UTMC, a !manah 'aham Mara Bhd $ & !manah 'aham 3ahang Bhd

2.

Malaysia introdu&ed the unit trust &on&ept in 1"/" when a unit trust was first esta$lished $y a &ompany &alled . a $ & d

5.

!manah 'aham 'arawa0 Berhad d 3TB Unit Trust Bhd

!manah 'aham Mara Bhd. Malayan Unit Trust Atd. MC Unit Trust Bhd. 3ermodalan 8asional Bhd.

8ame the first state unit trust fund that was open to nonBumiputra in)estors a $ & d

!'8T! !manah 'aham +awasan #6#6 ?ana @ohor !manah 'aham B'8


39

B) FMUTM

1.

The Federation of Malaysian Unit Trust Managers was formed in the year a 1""1 $ 1""% & 1""/ d 1""5

#.

+hat are the primary o$-e&ti)es of the FMUTM, i To impro)e the regulatory7 fis&al and legal en)ironments for unit trust a&ti)ities ii To formulate sound and ethi&al $usiness pra&ti&es iii To pro)ide information7 assistan&e and other ser)i&es to its mem$ers i) To promote pu$li& awareness of the $enefits and the ris0s of in)esting in unit trust a i7 ii  iii

$ ii7 iii  i)

& i7 iii  i)

d i7 ii7 iii  i)

%.

Dow many &oun&il mem$ers are there in the FMUTM, a 1# $ 16 & ; d 2

(.

FMUTM has de)eloped Understanding Malaysian Unit TrustG to a Delp in)estors understand the Malaysian unit trust industry $etter $ Delp in)estors &hoose the most suita$le unit trust to pur&hase & Ena$le 3?UTs to a&*uire $asi& 0nowledge and s0ills relating to unit trusts d Ena$le 3?UTs to impro)e on their selling s0ills

/.

+hat is the 9ision of the FMUTM, a To formulate sound and ethi&al $usiness pra&ti&es $ To impro)e the regularity7 fis&al and legal en)ironment for unit trusts & The enhan&e the prestige and reputation of mem$er UTMCGs $oth lo&ally and internationally d To de)elop the unit trust industry as the preferred )ehi&le for sa)ings and retirement

2.

The FMUTM 'e&retariat was formed in a 1""% $ 1""( &

1""/ d1""2

5. +hi&h of the following is not one of the &ommittees of the FMUTM Coun&il,    9 9 a $ & d

Ethi&s and Complian&e Tax and !&&ounting Edu&ation and Conferen&e !gen&y Training and Examination Ban*uet and Fun&tions     only 9 only !ll of the a$o)e

;. The first Coun&il 3resident of FMUTM was a $ & d

En. 'oh Te&0 Toh7 'te)en S Bhg ?atoGMale0 Manu&am S Bhg ?ato Kamaruddin Mohamed En. !$dul !lin Mohd a$idi


40

C> T;&STEE

1.

The main role of the UTGs trustee in&ludes i safeguarding in)estor funds ii appro)ing and monitoring all finan&ial transa&tions iii retaining the title do&uments of all assets i) &olle&ting all in&ome on $ehalf of the Trust a &

#.

!ll of the a$o)e ex&ept >ii d 8one of the a$o)e

The role and duties of trustee would in&lude4 i Custody of the UT'Gs assets ii Monitoring UTMC in)estment poli&ies are as des&ri$ed in the prospe&tus iii Colle&tion and distri$ution of UTGs in&ome i) Ensure &omplian&e to all the terms of Trust ?eed a &

%.

!ll of the a$o)e ex&ept > $ !ll of the a$o)e

i  ii i7 ii  i)

$ d

i  iii i7 ii7 iii  i)

The trustee is responsi$le for reporting the finan&ial &onditions of the trust and to ensure the following are adhered to 4 i TrusteeGs opinion on the Trustee 'tatement ii n a&&ordan&e with the limitations imposed on the in)estment power of the UTMC iii 'ending out !nnual :eport within three months of a finan&ial year a &

i7 ii  iii i  iii only

$ d

i  ii only ii  iii only

(.

The assets of the UT' are registered under whi&h party, a Trustee $ UTMC & 'e&urities Commission d Ma-ority unitholder

/.

f the UTMC has not a&ted in a&&ordan&e to the Trust ?eed and Huidelines7 the Trustee should report to a UTMC $ 'e&urities Commission & FMUTM d The poli&e

2.

+hi&h of the following des&ri$es the role of the Trustee, a 3romotes the sale of units and pro)ides repur&hase fa&ilities $ ssues the prospe&tus of the s&heme & 'uper)ises the operation of the trust to ensure that the o$-e&ti)es of the s&heme are followed d Ensures the fund manager pro)ides guaranteed returns


41

D> T;&ST DEED

1.

+hat is the do&ument that legally go)erns the relationship $etween in)estor7 UTMC and trustee, a Aoan !greement $ Huidelines on Unit Trust Funds & Memorandum of !sso&iation d Trust ?eed

#.

The following are unitholder rights4 i :ight to re*uest any information either $y mail or telephone ii :ight to &all a unitholdersG meeting iii :ight to )ote in unitholdersG meeting i) :ight to re&ei)e interim and final report a &

i  ii !ll of the a$o)e

$ d

i7 ii  iii 8one of the a$o)e

%.

UTMCs &an only in)est in a 'e&urities and assets authorised $y the 'e&urities Commission $ 'e&urities and assets authorised $y the Trust ?eed & Unlisted se&urities and se&urities listed on the sto&0 ex&hange d 'e&urities listed on the sto&0 ex&hange

(.

+hi&h do&ument go)erns the operations of unit trust fund, a Trust ?eed $ 'e&urities Commission !&t 1""% & 'e&urities ndustry !&t 1";% d 8one of the a$o)e

/. +hi&h of the following is not among the rights of the unitholders, a $ & d

:ight to re*uest information :ight to re&ei)e dis&ounts from sales &harge right to &all a unitholderGs meeting li$erty to ma0e &omplaints against the agent 
2. UnitholderGs rights in&lude the following ex&ept7 a $ & d

!ttend the Board of ?ire&torGs meeting 9ote in unitholderGs meetings To ma0e *ueries >in&luding &omplaints to UTMC :ight to re&ei)e distri$utions of in&ome

5. Choose the &orre&t statement a$out the Trust ?eed a $ & d

t shows the rights and o$ligations of the Manager7 Trustee and unitholders The 'C is lia$le to stru&ture the Trust ?eed for ea&h s&heme laun&hed $y ea&h UTMC n the e)ent the prospe&tus is not appro)ed $y the 'C7 the Trust ?eed may $e used as a repla&ement !n appointed Trustee is responsi$le for the issuan&e of the Trust ?eed

E> BE(EF'TS $F &('T T;&STS

1.

+hi&h is the most li0ely $enefit you will get with a di)ersified portfolio that in&ludes sto&0s7 $onds and money mar0et funds, a $ & d

Digher returns that you get with a portfolio that is not di)ersified The a$ility to $alan&e $oth ris0 and return in a&hie)ing your finan&ial goals ! guarantee that your portfolio will not suffer if the sto&0 mar0et falls !ll of the a$o)e


42

#.

n unit trust in)estment7  is the reward for ta0ing ris0s a $ & d

%.

li*uidity loss greed return

+hi&h of the following is not a $enefit of unit trust in)estments, a Huaranteed returns $ ?i)ersifi&ation & Ai*uidity d 3rofessional Management

F> #ET=$DS $F '(?EST'(@

1.

+hi&h of the following is true regarding dollar&ost a)eraging &on&ept, i t is a systemati& programme ii t &an turn flu&tuating pri&es to ad)antages iii t &an $e used o)er $oth short and long term period a $ & d

i  ii i  iii ii  iii i7 ii  iii

#.

Two &on)enient methods of in)esting in unit trusts are a regular sa)ings and $y finan&ing $ lump sum pur&hases and $y finan&ing & regular sa)ings and lump sum pur&hases d dire&t de$it and &he*ues

%.

!n in)estor has $een in)esting using the dollar &ost a)eraging &on&ept. Cal&ulate the a)erage &ost per unit with the following information gi)en >nearest &ent4

a &

?ate of 3ur&hase

3ri&e

!mount in)ested

@an #66#

:M 1.66

1666

Fe$ #66#

:M6.";

1666

Mar&h #66#

:M1.1#

1666

:M1.6% :M6."5

$ d

+or0ing 4 i Cal&ulate total units



ii !nswer



:M1.1% none of the a$o)e

!mount in)ested pri&e Total amount in)ested Total units









(. ?ollar&ost a)eraging is the prin&iple of in)esting  amount of money at  inter)als irrespe&ti)e of the pri&e le)el. a e*ual7 regular $ e*ual7 irregular & une*ual7 regular d une*ual7 irregular


43

/. +hi&h of the following is not true regarding methods of in)esting in unit trusts, a Aump sum in)estment $ :egular sa)ings & Aoan finan&ing d 8one of the a$o)e

@> $A( F'(A(C'(@

1.

+hen the finan&ed unit trust in)estment is sold7 this transa&tion o&&urs $etween 4 a unit trust manager and the finan&ier $ unit trust manager and the unitholder & unitholder and the finan&ier d unitholder and the lawyer

#.

+hat do&ument would show that the &ustomer intending to finan&e their UT in)estment has $een made aware of the ris0 in)ol)ed, a The Trust ?eed $ :is0 ?e&laration 'tatement & :is0 ?is&losure 'tatement d The 3rospe&tus

%.

+hen an in)estor $orrows funds from a finan&e &ompany to pur&hase unit trust7 whi&h 0eeps the unit trust &ertifi&ate, a Trustee $ Unit Trust management &ompany & Finan&e &ompany d n)estor

(.

f an in)estor se&ures maximum loan finan&ing for unit trust in)estment7 and the amount of in)estment on his own is =(676667 what will $e his total in)estment, a =1"7561 $ =/"7561 & =;17#1# d =1#17#1# +or0ing 4 Maximum loan finan&ing allowed is 25 of total in)estment7 so the in)estorGs own in)estment of =(67666 is %% of total in)estment. To o$tain total in)estment 4 =(67666 x 166   = 1#17#1# %%

/.

!n in)estor has in)ested a total of :M #667666 in a unit trust fund. Dow mu&h has he o$tained from the endfinan&ier to finan&e his in)estment, !ssume he has o$tained maximum loan. a =227666 $ =1%(7666 & =#667666 d 8one of the a$o)e +or0ing 4 Maximum loan finan&ing allowed is 25 of total in)estment7 so 4 =#667666 x 25  = 1%(7666


44

2.

!n in)estor has :M#67666 in his $an0 a&&ount and wishes to withdraw it to in)est in a unit trust s&heme. De intends to maximie his return through le)eraging. +hat is the maximum loan amount allowa$le under the Huidelines on Aoan Finan&ing, a =1%7(66 $ =#67666 & =(67262 d =267262 +or0ing 4 'in&e you &an o$tain finan&ing for 25 or twothirds of total in)estment7 the =#67666 is %% of the whole in)estment. i Cal&ulate the total in)estment amount 4 =#67666 R 166

 =267262

%% ii Cal&ulate maximum loan amount 4 =267262 R 25

 =(67262

5.

The way to maximie oneGs exposure in growth assets su&h as unit trusts through $orrowed funds is &alled a Dedging $ ?i)ersifying & 'preading d Ae)eraging

;.

+hat are the draw$a&0s of o$taining loan to finan&e unit trust,  The true &ost of finan&ing o)er a gi)en period may not $e 0nown as the interest rate flu&tuates  3remature redemption may affe&t the returns of the indi)idualGs in)estment  The )alue of the in)estment flu&tuates7 thus gi)ing rise to the possi$ility of the in)estor earning greater returns 9 f there is a default in payment of the loan7 the finan&ial institution &an li*uidate the in)estment without the $orrowerGs &onsent a $ & d

   7   9 7   9 !ll of the a$o)e

".

The role of the 3?UT when an in)estor is interested to finan&e the unit trust in)estment is a Fully explain to the in)estor the ris0s in)ol)ed in le)eraging the in)estment $ Dighlight the pro-e&ted returns as a means of &omparing the returns with the &ost in)ol)ed & 3?UT must sign the :is0 ?is&losure 'tatement d En&ourage the in)estor to o$tain up to the maximum margin of finan&e

16.

+hi&h of the following statements is true of loan finan&ing, a 'o long as the :is0 ?is&losure statement is signed7 the 3?UT &an en&ourage his &lient to pur&hase the units through loans $ F the in)estor has approa&hed the 3?UT with the idea of finan&ing his pur&hase of units7 the 3?UT &an assume that he is aware of the ris0 and thus7 does not need to explain on the ris0 the in)estor is ta0ing & !&&ording to the Huidelines on Aoan Finan&ing released on %6 8o)em$er 1""/7 the maximum margin of finan&ing is 26 d The :is0 ?is&losure 'tatement has to $e signed $y the in)estor who wishes to in)est through loans

11.

+hi&h of the following is not outlined in the :is0 ?is&losure 'tatement , a The issue of margin &alls or topup of loan $ The higher the margin of finan&ing7 the greater the potential for loss as well as gains & f interest rates rise7 your total repayment amount will de&rease d :eturns for the unit trusts are not guaranteed


45

1#.

+hi&h of the following iss of the :is0 ?is&losure 'tatement, 

To highlight to the potential in)estor of the ma-or ris0s in)ol)ed with the loan finan&ing  To prote&t the unit trust management &ompanies in the e)ent of dispute o)er the returns that may fall $elow the expe&tations of the in)estor  To en&ourage the potential in)estor to pur&hase the unit trust through loan finan&ing 9 To assess the &redit worthiness of the potential in)estor a $ & d

      9 7   9

1%.

n loan finan&ing7 what is the rate of interest &harged $y the finan&ier, a BA: L ManagerGs selling pri&e $ BA: L Finan&ierGs mar0edup margin & ManagerGs selling pri&e L finan&ierGs mar0edup margin d ManagerGs selling pri&e only

1(.

The first set of Huidelines on Aoan Finan&ing was issued on a %6th 8o)em$er 1""( $ %6th 8o)em$er 1""/ & %6th 8o)em$er 1""2 d %6th 8o)em$er 1""5


46

=> E*F

1.

Mr. +ong has a $alan&e of :M#/67666 in his E3F a&&ount. +hat is the maximum amount that he &an withdraw from his E3F a&&ount to in)est in a unit trust fund, a $ & d

=#67666 =%67666 =(67666 =/67666

+or0ing 4  Cal&ulate how mu&h is in a<& 1  =#/67666 x   ii E3F in)estment  =  =/67666 x #6

#.

 =

+hat is the maximum amount of E3F Mr. 8aseem is allowed to withdraw for the pur&hase of unit trust on a single withdrawal if his E3F a&&ount $alan&e is as follows !&&ount 1 :M16;7666 a

!&&ount # :M2;7666

:M117266

+or0ing 4 i ii

$ :M %7266

!&&ount % :M#;7666 & :M #17266

d :M 1%7266

E3F withdrawal entitlement  Balan&e in !<&  less =/67666 x #6  =  =/67666 x #6 =

%.

'in&e 7 E3F &ontri$utors are allowed to withdraw part of their money in !&&ount 1 to in)est in unit trusts a 1""/ $ 1""2 & 1""5 d 1"";

(.

En. !li has made a single withdrawal from his E3F a<& for in)estment into Unit Trusts. De has withdrawn the maximum whi&h amounts to :M 27666. Dow mu&h does he ha)e in his !&&ount 1 now, a :M %67666 $ :M /67666 & :M 5(7666 d :M ;67666 +or0ing 4 'in&e En. !li has withdrawn maximum7 the =27666 e*uals to  of the $alan&e in !<& 1 less =/67666. i To o$tain the original $alan&e in !<&  =27666 <  L =/67666  = $ Current $alan&e  =  =27666  =


47

'> T<*ES A(D CATE@$;'ES $F &('T T;&STS

1.

+hi&h of the following $est des&ri$es fixed in&ome funds, a The funds in)est primarily in sto&0s whi&h earn signifi&ant di)idend in&ome $ 8ormally in)ests in &orporate $onds7 go)ernment se&urities and li*uid assets & n)est in sto&0s with higher growth potential d These funds generate returns whi&h &losely resem$le the performan&e of the sto&0 mar0et index $oth in terms of ris0 and return

#.

+hi&h of the following $est des&ri$es an e*uity trust, a These are trusts that are not listed on a sto&0 ex&hange $ They in)est mainly in go)ernment se&urities or li*uid se&urities & They in)est mainly in e*uities or se&urities of listed &ompanies d They in)est mainly in e*uities of unlisted &ompanies

%.

+hi&h of the following is not a feature of an openended fund, a Units in &ir&ulation are flexi$le and will in&rease or de&rease in sie with e)ery &reation and &an&ellation of units $ The pri&es of the UT' are $ased on demand and supply & The trust is not listed on a sto&0 ex&hange d 'ales and repur&hases of the units are transa&ted dire&tly with the UTMC

(.

8ame the features of the listed fund  The pri&es flu&tuate daily and are $ased on supply and demand  The num$er of units is restri&ted on&e the in)estment is floated on the sto&0 ex&hange  'ale and repur&hase of units are transa&ted with $ro0ers 9 'ale and repur&hase of units are transa&ted dire&tly with the fund manager a $ & d

/.

   7      9   9

Fixed interest in)estments ha)e a high negati)e &orrelation with e*uities meaning 4 a +hen the e*uity mar0et is down7 the return from fixed interest in)estments in&reases $ +hen the e*uity mar0et is up7 the return from fixed interest in)estment will supersede the return from e*uity mar0et & The ris0 element of fixedin&ome fund is higher than e*uities d The returns from e*uities are always greater than fixed interest in)estments regardless of the mar0et situation


48

> *;$S*ECT&S

1.

Before pur&hasing unit trusts7 in)estors should read and understand the a Trust ?eed $ 3rospe&tus & !nnual :eport d Ban0 8egara Malaysia !nnual :eport

#.

+hi&h information is found in a prospe&tus, i n)estment o$-e&ti)es ii Fees  &harges iii Trust fees i) Trust expenses a &

ii  iii ii7 iii  i) d

$ i7 ii  i) i7 ii7 iii  i)

%.

The $est way to go through a prospe&tus with a &ustomer is a To go through the identity of UT'7 UTMC7 Trustee  'yariah !d)isor $ To fo&us on the $enefits of unit trust in)estment & To go through the Key ?ata d To go through the !uditorGs :eport

(.

+hi&h of the following is not stated in the 3rospe&tus, a O$-e&ti)es of the fund $ 3otential ris0s of in)esting in unit trusts & 3ro-e&ted returns d Management expenses ratio

/.

Dow often should the prospe&tus $e updated, a 8O spe&ifi& re*uirement $ E)ery % years & E)ery % months d E)ery 1# months

2.

The 3rospe&tus of ea&h s&heme must &ontain the following information ex&ept 4    9

n)estment o$-e&ti)es !uthorised in)estment Fees and &harges n)estment strategy

a $ & d

7  and  8one of the a$o)e !ll of the a$o)e  and  only

5.

It is a legal do&ument that pro)ides information on the management &ompany and trustee7 in)estment o$-e&ti)es of the fund7 potential ris0s of the produ&t7 fees and &harges and di)idend history. t must $e made a)aila$le to all prospe&ti)e unit holders.J +hi&h of the following $est represents the a$o)e statement, a Trust ?eed $ 3rospe&tus & !nnual :eport d Huidelines on Unit Trusts

;.

t is the duty of the  to prepare a prospe&tus $efore laun&hing a fund a 'e&urities Commission $ FMUTM & Trustee d UTMC


49

%> TA) A(D '(FAT'$(

1.

!n in)estor re&ei)es #6 nominal return from his in)estment and his marginal tax rate is #6. F the annual inflation rate is 167 what is his effe&ti)e return, a) 16 $ 6 & 2 d ; +or0ing 4 i Effe&ti)e return  nominal return N tax N inflation ii  #6  ( tax >this is #6 of the #6 return N 16 inflation  

#.

!n in)estor is re&ei)ing 1/ nominal yield from his in)estment and his marginal tax rate is 16. f the annual inflation rate is /7 what is the differen&e $etween the nominal yield and effe&ti)e yield, a $ & d

2./ ;./ 1#.5/ 1%./

+or0ing 4 i 1/  1./ tax >16 of 1/ return N / inflation   ii ?ifferen&e $etween nominal yield and effe&ti)e yield 4

 1/    

%.

Tax and inflation are important when ma0ing in)estment de&isions $e&ause a they are &losely monitored $y the go)ernment $ they affe&t the effe&ti)e return on the in)estment & they in&rease the nominal return on the in)estment d they de&rease the nominal return on the in)estment

(.

+hat is the real )alue of assets, a The )alue of assets that are tangi$le $ The )alue of assets after taxation & The )alue of assets after inflation d The )alue of assets after $oth inflation and taxation

/.

s your nominal return on in)estment your effe&ti)e return, $ Ses. This is the a&tual in&rease in my pur&hasing power & Ses. Dowe)er7 the nominal return will $e lower than the effe&ti)e return d 8O.  ha)e to ta0e into &onsideration the impa&t of tax and inflation. The higher the tax and inflation7 the higher my real return e 8o.  ha)e to ta0e into &onsideration the impa&t of tax and inflation. The higher the tax and inflation7 the lower my real return.

> ;&E $F 2

1.

!n in)estor has =(67666 and wants to dou$le it in / years. +hat rate of return should he loo0 for, a /.# $ 5.# & 1(.( d #;.; +or0ing 4 i

#.

!pply the :ule of 5# 4 5# < /  

!hmad has :M (667666 in his $an0 a&&ount. f the &urrent inflation rate is ( 7 how long would it ta0e for his funds to $e hal)ed,


50

a $ & d

1# years 12 years 1; years #6 years

+or0ing4 i %.

!pply the :ule of 5# 4

5#< (  1; years

My son has :M17666 in his $an0 a&&ount. De will in)est this :M1666 in an in)estment )ehi&le that yields a return of ; per year. Dow long will it ta0e for the money to dou$le, a> b> c> 7>

" years 1( years %2 years 1#/ years

+or0ing i

!pply the :ule of 5# 4

5# < ;  " years

#> C$ST A(D C=A;@ES

1.

 pri&e is the pri&e at whi&h units are sold to the pu$li&. t in&ludes the initial sales &harge. a Offer $ Buying & :edemption d Bid

#.

The management fee is used to 4 a &o)er management expenses $ &o)er &ommission paid to 3?UTs & &reate more rewards for in)estors d expand the sie of the unit trust funds

%.

+ hat are initial &harges meant for, a To redu&e management fee $ To &o)er the &ost of distri$uting unit trust & To &o)er the trust fee d !ll of the a$o)e

(.

f an in)estor is in)esting for the long term >for example #6 years7 the impa&t of fee and &harges should not $e o)erloo0ed $e&ause a fees and &harges is the de&iding fa&tor for the in)estment $ it will affe&t the after&ost in)estmentGs &ompounding return & the UTMC may $e unreasona$le in &harging the fee d the UTMC should not $e &harging fees other than initial &harges

/.

I.. is a &harge $ased on H8!9 of the fund paid $y the unit trust holder to the fund manager for ongoing management of the unit trust fund. a Trustee fee $ ConsultantGs fee & Management fee d 'ales &harge

2.

+hi&h of the following &harges is the fee le)ied $y the manager on the in)estors to &o)er the &osts of distri$uting the unit trust, a Management fee


51

$ & d 5.

nitial 'er)i&e &harge Trustee fee :epur&hase fee

Cal&ulate the ME: with the information $elow nitial n)estment nitial Charges Management Fees Trustee Fees Fund 'ie !uditorGs Fee Ban0 Charges :ate of return per annum a 6.(%

$ 1.16

:M/7666 / :M#/7666 :M/666 :M%76667666 :M17666 :M#7666 1/ & 6."%

d 1.#5

+or0ing 4 i ME:  Fees L :e&o)ered Expenses x 166  !)erage  ii

!dd fees  expenses 4  = L = L = L = x 166    =%m

;.

+hi&h of the following statements are true,  

! newly laun&hed UT' will ha)e no ME: )alue ME:  Fee L :e&o)ered Expenses x 166 !)erage Fund 'ie  ?e&reasing ME: indi&ates that the UTMC is managing the fees and expenses well 9 ME:  Fee L!)erage Fund 'ie x 166 :e&o)ered Expenses a $ & d

8one of the a$o)e 7  and  7   9   9

(> #EAS&;'(@ *E;F$;#A(CE

1. The $asi& ways in whi&h the performan&e of a Unit Trust s&heme should $e analysed is 4  :aw return  !nnualised return  :eturns after fees and &harges 9 3erforman&e Ta$les 9 Consisten&y a $ & d

     9 9 only !ll of the a$o)e


52

#.

+hi&h of the following &an $e used as a $en&hmar0 for unit trust funds, a KA'E $ slami& ndex & F? rate d !ll of the a$o)e

%.

+hi&h of the following &an $e used as a $en&hmar0 for e*uity trust, a The performan&e of KA'E $ The performan&e of Bond Mar0et & :DB slami& ndex d !ll of the a$o)e

(.

The Malaysian Unit Trust Funds 3erforman&e Ta$le was introdu&ed in a 1""( $ 1""/ & 1""2 d 1""5

$> &('T *;'C'(@

1.

f the 8!9 of a fund is =1.6/7 the $uying pri&e is =1.667 and selling pri&e is 1.6"7 what is the amount that an in)estor would re&ei)e if he wants to redeem his 167666 units, a ="7;66 $ =167666 & =167/66 d =167#66 +or0ing 4 i

:edemption )alue  units x  pri&e

ii

167666 units x   =

#.

The 8!9 per unit of a unit trust fund is :M 1.66. Mr. Muthu in)ested into the fund with a lump sum of :M#(7666 at the 'elling 3ri&e of 8!9 plus sales &harge of /. Dow many units would he $e entitled to, a #(7666 $ #/7#2%.1/ & ##7;/5.1( d none of the a$o)e +or0ing 4 i Cal&ulate selling pri&e  8!9 L 'ales &harge  =1.66 L /  =1.6/ ii Cal&ulate num$er of units   < selling pri&e  = < =1.6/   units

%.

!BC FU8? ?ate #;<%<#66# 8!9 =(/6 million Units in &ir&ulation %66 million

#"<%<#66# :M (/6 million %#6 million

The ser)i&e &harge for !BC fund is 16 a$o)e the 8!9 per unit and the repur&hase &harge is / sen $elow 8!9

53

+or0ing 4 i> ii>

iii>

(.

Distori&al pri&ing is the &losing pri&e on the pre)ious day7 whi&h is  < %< 6# Cal&ulate 8!9 per unit $ased on the 8!9 on   =(/676667666   =  units !dd 16 ser)i&e &harge  = L 16  =

:eferring to the *uestion a$o)e7 if the $uying pri&e of !BC fund is $ased on forward pri&ing7 what will $e the $uying pri&e for a unitholder who redeemed on #;<%<#66#, a $ & d

=1.(/ =1.// =1.2/ none of the a$o)e

+or0ing 4 i ii

Forward pri&ing is the &losing pri&e on the transa&tion day7 whi&h is #; < %< 6# Cal&ulate 8!9 per unit $ased on the 8!9 on #;<%<6#  =(/676667666 

 =1./6

%6676667666 units iii

/.

 / sen  =

f the pu$lished pri&e today *uotes the 8!9 per unit as 6.5/7 what is 4 i the selling pri&e if initial sales &harge is ;, ii the Units in &ir&ulation if the 8!9 is :M 1/676667666, a $ & d

6.;17 1/676667666 units 6.2"7 #6676667666 units 6.;17 #6676667666 units 6.567 1/676667666 units

+or0ing 4 i) ii)

6.5/ L ;  6.;1

8!9

   units ,

2.

+hat is 8!9 per unit, a $ & d

5.

 is the pri&e at whi&h units are $ought from the pu$li&. t in&ludes the redemption &harge. a $ & d

;.

Total )alue of the in)estment after dedu&ting ser)i&e &harge :atio of the in)estment in fixedin&ome se&urities 8!9 of the in)estment di)ided $y the num$er of units in issue Total units held $y the s&heme multiplied with the repur&hase pri&e

Bid pri&e Offer pri&e 'elling pri&e 8!9

The lowest managerGs $uying pri&e allowa$le under the Huidelines on Unit Trust funds e*uals Ithe  minus the . a $

8!9

54

& d ".

:epur&hase pri&e7 management fee 'elling pri&e7 initial ser)i&e &harge

The 'elling 3ri&e of a unit trust fund is :M 1.#6 per unit. En. Maidin in)ested into the fund with a lump sum of :M#7(66. Dow many units is he entitled to, a #67666 $ #7666 & #66 d 8one of the a$o)e +or0ing 4 i #7(66  #666 units

=1.#6

16.

+hi&h of the following $est des&ri$es forward pri&ing, a it is the &losing pri&e on the day of sales
11.

UTMC uses forward pri&ing method when &omputing the selling and repur&hase pri&es. !ssuming at "4%6 a.m. today7 the 8!9 of the fund was :M 1;676667666.66 and unitsinissue was #6676667666. !t the end of the day the 8!9 has in&reased to :M 1"676667666.66 and unitsin issue remain un&hanged. f a &ustomer wants to redeem today7 how mu&h is the repur&hase pri&e per unit if no repur&hase fee is &harged and the repur&hase pri&e is at 8!9
8!9 per unit  8!9 < UC !s forward pri&ing is $eing used7 the 8!9 at the end of the day must $e ta0en to &ompute the 8!9 per unit 

:M  :M #6676667666 UC

1#.

Unitholders redeem units from the Unit Trust Managers at whi&h pri&e, a 'elling pri&e $ :epur&hase pri&e & 8et !sset 9alue d Forward pri&e


55

*> D'?'DE(DS A(D &('T S*'TS

1.

! Unit trust fund de&lared a $onus issue of 14#. F the 8!9 of the fund &um $onus is :M1;676667666 and units is issue &um $onus is 16676667666 units what will $e the 8!9 per unit ex $onus, a =6.26 +or0ing 4

$ =6."6

& =1.#6

d =1.;6

Before you &an &al&ulate the 8!9 per unit7 you need to &al&ulate the num$er of units after $onus i Cal&ulate total units >x$i  16676667666 units x    units ii Cal&ulate 8!9 per unit 

=1;676667666 <  units

 =

#.

! unit trust fund de&lared a gross di)idend of 1# sen per unit. The 8!9 on &um di)idend is :M#(676667666 and units is issue &um di)idend are #6676667666 units. +hat will $e the 8!9 per unit exdi)idend, a

=1.1%

+or0ing 4 i

$ =1.6;& =#.#;

d =1.((

&al&ulate di)idend amount  #6676667666 units x 1#&ts  =#(76667666

ii

less di)idend amount from 8!9  =#(676667666  =#(76667666  =#1276667666

iii

&al&ulate 8!9 per unit =   #6676667666 units  =

%.

!n in)estor has #666 units in Fund !. The 8!9 &umdi)idend is :M 1.#6 per unit. Fund ! has sin&e de&lared a di)idend of 16 sen per unit. +hat is the total )alue of her in)estment exdi)idend, a $ & d

=#7#66 =#7(66 #7266 none of the a$o)e

+or0ing 4 i

Cal&ulate the 8!9 exdi)idend  :M1.#6 N 16 sen  :M1.16

ii

Cal&ulate )alue of in)estment  #666 units x :M  :M 

(.

The 8!9 for a unit trust fund is :M 1;676667666.66. Unitsinissue are 16676667666. !ssuming the fund manager is &harging a 16 initial ser)i&e &harge7 how mu&h is the selling pri&e after a unit split of 14(,


56

a $ & d

=1./; =1.1% =1.(( =1.";

+or0ing 4 i To &al&ulate the selling pri&e7 you must first &al&ulate the 8!9 per unit 

To &al&ulate the 8!9 per unit you need # items 4 ⇒

8!9

⇒

Units in &ir&ulation



The 8!9 remains the same at :M 1;676667666



The units in &ir&ulation has now in&reased $y #/ >14(



'o7 to &al&ulate total units >x$i 4 ⇒

16676667666 units x 1#/

⇒

1#/76667666 units

ii Cal&ulate 8!9 per unit 

=1;676667666 1#/76667666 units

 =1.(( iii !dd 16 ser)i&e &harge  =1.(( L 16  =1./;

/.

+hi&h of the following statements is true after di)idend de&laration, a $ & d

The 8!9 of the fund will de&rease The 8!9 of the fund will in&rease The units in &ir&ulation will in&rease The units in &ir&ulation will de&rease

2.

+hen a unit split is done 4 a 8!9 falls $ 8!9 rises & 8!9 per unit falls d 8!9 per unit rises

5.

Cal&ulate the differen&e $etween old and new 8!9 per unit with the following information4 Fund 8!9 Units in &ir&ulation Unit splits a &

:M6./6 :M 6.(6 d

4 :M /676667666 4 16676667666 units 4 Unit 'plit of 14(

$ :M6.16 8one of the a$o)e

+or0ing 4 i Cal&ulate old 8!9 per unit :M /676667666 

 /6 sen

16676667666 ii Cal&ulate new 8!9 per unit


57

8!9 remains un&hanged at

:M /676667666   (6 sen

Units in &ir&ulation in&reased $y #/76667666 >14(  1#/76667666 iii Cal&ulate differen&e $etween old and new 8!9 per unit 4  /6 sen N (6 sen  16 sen

;.

+hen there are $onus issues and di)idend payments7 a ThereGs no effe&t on unit pri&e $ ThereGs an ad-ustment to unit pri&e7 usually upwards7 then downwards & ThereGs an ad-ustment to unit pri&e7 usually upwards d ThereGs an ad-ustment to unit pri&e7 usually downwards

".

'hould a unit holder not &laim his
16.

The 8!9 &umdi)idend for a unit trust fund is :M 1/676667666.66. Unitsin issue is 16676667666. f the di)idend de&lared is 16 sen per unit and the fund manager is &harging a / initial ser)i&e &harge7 how mu&h is the selling pri&e exdi)idend, a $ & d

=1.(5 =1./6 =1.(6 =1.%/

+or0ing4 • n order to &al&ulate the selling pri&e you need to &al&ulate the 8!9 per unit and add the sales &harge to it. • To &al&ulate the 8!9 per unit7 you will need the 8!9 >less di)idend issued and the UC i &al&ulate di)idend amount  16676667666 units x 16&ts  =1676667666 ii less di)idend amount from 8!9  =1/676667666  =1676667666  =1(676667666. This is the 8!9 after di)idend issue iii &al&ulate 8!9 per unit exdi) =1(676667666    =1.(6 16676667666 units i) add / ser)i&e &harge  =1.(6 L /  =1.(5

11.

! UTMC de&lared a $onus of 14(. f the 8!9 of the fund >x$i is =12676667666 and Units in issue >x$i are #6676667666 units7 what was the 8!9 per unit >&$i, $ =6.;6 a> =6.26 & =1.66 d =1.#6 +or0ing 4 • This *uestion as0s you to wor0 out the pri&e $efore the $onus units were issued. • 'o7 you ha)e to wor0 out the units in &ir&ulation $efore the $onus units were issued >&$i. • 8ote that the $onus units do not affe&t the 8!9 whi&h remains the same whether &$i or x$i7 i.e. =12676667666. i

Cal&ulate units in &ir&ulation &$i  #6676667666 units


58



 12676667666 units &$i

1#/ >$e&ause $onus units of 14( ii

Cal&ulate 8!9 &$i 

=12676667666 

 =1.66

12676667666 units

1#.

! UTMC de&lares a di)idend of / sen per unit. The 8!9 exdi)idend is =16676667666 and UC exdi)idend are 16676667666 units. +hat was the 8!9 per unit &umdi)idend, a> =1.66 $ =1.6/ & =6."/ d 8one of the a$o)e +or0ing4 • n this *uestion7 you are as0ed what was the pri&e $efore di)idend was issued >&um di)idend. • 'o you ha)e to add $a&0 the di)idend that was paid to the 8!9 to &al&ulate the pri&e &um di)idend. i>

Cal&ulate the total di)idend that was paid  16676667666 units x / sen  =/76667666

ii

!dd to 8!9 exdi)  =/76667666 L =16676667666  =16/76667666 >8!9 &umdi)

iii

Cal&ulate 8!9 per unit &um di)idend  =16/76667666 

 =1.6/

16676667666 units


59

Q> T=E ;E@&AT$;< F;A#E$;%

1.

+hi&h of the following statements is not true,  ! UTMC &an only in)est in se&urities authoried in the Trust ?eed  ! UTMC is allowed to $orrow funds to finan&e its in)estment a&ti)ities  ! UTMC is not allowed to ma0e any loans out of the in)estment funds of the unit trusts to parties related to it 9 ! UTMC is responsi$le for payment of all trusteerelated expenses7 in&luding trustee fees a $ & d

 7  and  7   9   9

#.

+ hi&h of the following is not )alid, a The Management &ompany is responsi$le for sending all reports and noti&es to the unitholders $ The Management &ompany is not permitted to ma0e any loans out of the in)estment funds to any parties & t is the duty of the 'C to setup an n)estment Committee d The 'C must appro)e mem$ers of the in)estment &ommittee of a unit trust fund

%.

!ll a $ & d

(.

!ll Unit Trust funds must $e appro)ed $y . a FMUTM $ Ban0 8egara & 'e&urities &ommission d Management &ompany

/.

+hat does this statement mean 4 IUnit trusts ha)e the $enefit of professional managementJ, a The in)estment &ommittee only manages fund in ex&ess of :M/66 million $ The unit trust fund always meets its o$-e&ti)e & The returns of unit trust are guaranteed d The in)estment &ommittee is trained in the field of fund management

2.

Ae)eraging to pur&hase additional in)estments for the fund is not allowed $e&ause while there is potential for upside in le)eraging7 i there is attra&ti)e return to $e pro)ided ii there is attra&ti)e return guaranteed iii there is &onsidera$le ris0 in)ol)ed i) there is &ost in a falling in)estment mar0et a &

5.

in)estments of a unit trust fund are registered in the name of the . Trustee Management Company 'e&urities &ommission Unitholder

i7 iii  i) $ i  iii

ii7 iii  i) d iii  i)

The fund manager is re*uired to maintain a li*uidity $uffer to meet redemptions. The li*uidity $uffer is usually in the form of i &ash ii high yield $ond iii short dated fixed interest instrument i) *uoted share a i  ii & i7 ii  iii

$ i  iii d i7ii7iii  i)


60

;.

+hat is the minimum num$er of in)estment &ommittee mem$ers re*uired to $e independent, a one $ onehalf & onethird d one*uarter

".

+hi&h of the following are allowed to )ote in a meeting &all $y the UTMC on matter relates to the UT', i unitholder ii UTMC iii FMUTM i) 'e&urities Commission a &

i only i7 ii7 iii only

$ d

i  ii only !ll of the a$o)e

16.

!&&ording to the Huidelines on Unit Trust Funds7 the management &ompany must set up a
11.

The manager of the unit trust has the following responsi$ilities ex&ept 4 a Cal&ulation of unit pri&es $ ?istri$ution of in&ome & ?aytoday management of the assets d Ownership of the assets of the trust

1#.

!&&ording to the guidelines7 the following are true ex&ept 4 a The initial offer period of any new fund must not ex&eed #1 days $ The UTMC must pro)ide e)ery in)estor with a &oolingof right of not less than 2 $usiness days & The UTMC must pay the pro&eeds of the repur&hase of units to the unitholder within 16 &alendar days of re&ei)ing the repur&hase re*uest d The UTMC needs to pu$lish the daily selling<$uying<8!9 pri&es in either a Malay or English newspaper

1%.

UTMCs are re*uired to hold &apital to support its o$ligation. +hat statement &orre&tly *ualifies this &apital, i ii iii i)

Commitment to the $usiness of unit trusts More &apital means more 3?UTs &an $e employed The &apital &an $e used in the &ase of negligent &laims against the management &ompany The &apital &an $e used for distri$ution of di)idend

a i  ii 1(.

$ ii  iii & ii  i) d i  iii

+hi&h of the following are regulations affe&ting the UTMC, a Maximum exposure to any one group of &ompanies $ Maximum exposure in a single &ompany & Maximum exposure in foreign mar0ets d !ll of the a$o)e

;> #A;%ET'(@ A(D D'ST;'B&T'$( $F &('T T;&STS

1.

+hat are the minimum standards for registration of persons who sell unit trusts,  must $e at least 1; years old  must possess at least Hrade % '3M or its e*ui)alent  must not $e &on)i&ted of any &riminal offen&e 9 must pass the preregistration examination a $ & d

   7    7   9 !ll of the a$o)e


61

#.

!&&ording to the Huidelines on Mar0eting and ?istri$ution of Unit Trusts7 the 3?UT must display the authoriation &ard issued $y . a

FMUTM

$

'e&urities Commission

&

Trustee

d

Ban0 8egara

%.

+hy are 3?UTs re*uired to register, a To impro)e the o)erall sales of the unit trust industry $ To impro)e effi&ien&y and professionalism of the unit trust industry & To 0eep tra&0 on the num$er of 3?UT in the unit trust industry d To ma0e sure that there is suffi&ient num$er of 3?UT in the unit trust industry

(.

+hat is the name of the $ody that registers and administers 3?UTs for the purpose of the mar0eting and distri$ution of unit trusts, a FMUTM $ 'e&urities Commission & Ban0 8egara d UTMC

/.

+hat are the &hannels UTMCs use to mar0et and distri$ute unit trusts, a Ban0s and finan&e &ompanies $ 'alaried sales for&es & 3?UTs d !ll of the a$o)e

2.

3?UTs are hired $y a FMUTM $ & 'e&urities Commission

5.

UTMCs d Dead Dunters

+hi&h is the reason why mar0eting of unit trust in)estments sometimes fail to produ&e sales and $usiness )olume, i 3otential in)estors are unaware on how unit trusts &an help to in&rease their net worth ii 3otential in)estors are unaware of their needs iii 3otential in)estors are fear of losing their &apital i) The poor performan&e of UTMC in relation to their &ompetitors a &

i only i7ii  iii only

$ d

i  ii only i7 ii7 iii  i)

;.

+hat is the sie limit of a U8T, a must not ex&eed /6 persons $ &an $e from /6 N 166 persons maximum & no limit to the sie of a unit d none of the a$o)e

".

+hi&h of the following is the $est party to handle *ueries from in)estors , a 3?UT $ UTMC & FMUTM d 'C


62

S> C$DE $F ET='CS  STA(DA;DS $F *;$FESS'$(A C$(D&CT

1.

+hi&h of the following are the prin&iples stated in the Code of Ethi&s,    9 9 9 a $ & d

Donesty ?ignity ntegrity Friendliness Fair ?ealing Hood Faith 7779 and 9 7779 and 9 7797 9  9 77979 and 9

#.

+hi&h )alues are important to the growth and image of the unit trust industry, a 3rofessionalism $ ntegrity & Consisten&y d !ll of the a$o)e

%.

+hi&h guideline re&ognies the importan&e of a$solute moral ethi&al $eha)ior, a Huidelines on 3roperty Trust Fund $ Huidelines on Unit Trust Fund & Huidelines on the Mar0eting and ?istri$ution of Unit Trust d Huidelines on the Code of Ethi&s and 'tandard of 3rofessional Condu&t

(.

To meet the &hallenges posed $y the new sophisti&ated &ustomers7 3?UT must stri)e to do the following ex&ept 4 $ Maintain high ethi&al standards in their mar0eting & Fine tune their produ&t 0nowledge d Dard sell e !&*uire suita$le professional *ualifi&ations

/.

The following are ways to impro)e the ser)i&e *uality to &ustomers ex&ept 4 a Ma0ing appli&ation forms and other do&uments easy to read and use $ nforming the in)estors a$out pro&esses in)ol)ed in the pur&hase and how long these might ta0e & Ensuring those in)ol)ed in ser)i&ing &lients are wellinformed and are aware of the extent of their responsi$ilities d Keeping &ustomers happy $y hiding negati)e news from them

T> SE;?'C'(@ C'E(TS

1.

+hat is the first thing 3?UTs should do when mar0eting unit trusts to &ustomers, a Explain the prospe&tus in detail $ Clarify &ustomer needs and ris0 profile & ntrodu&e different types of unit trust d Explain the importan&e of unit trust

#.

Ma0ing appli&ation forms and other do&ument simple to read and use would a impro)e ser)i&e *uality and in&rease the importan&e of UT industry $ impro)e ser)i&e *uality and de&rease the importan&e of UT industry & sa)e time in explaining the ris0 in)ol)ed d &reate a short &ut for F?UT to &lose deal

%.

Complaints should $e dealt with in the following manner a gnored $e&ause the &ustomer is fussy $ Tell the &ustomer that unit trust ad)antages outweigh its disad)antages & :edire&ted to UTMC immediately d 'een as an opportunity to ser)e &ustomer $etter


63

(.

+hen there are &omplaints7 3?UT should a ignore them $ respond *ui&0ly and with &are & refer the &omplaints to UTMC d refer the &omplaints to 'e&urities Commission

/.

Customers with &omplaints should dire&t them to their a 3?UTs $ UTMCs & Trustees d FMUTM

2.

!s the mar0et and in)estors $e&ome in&reasingly sophisti&ated7 the 3?UT should a&ti)ely a hard sell to &ustomer $ pro)ide information during the sales period & pro)ide information and hard sell at all times d pro)ide information during and after the sales period

5.

ManagerGs :eport should in&lude a UT'Gs o$-e&ti)e and poli&y & e&onomi& re)iew

;.

$ d

sto&0 mar0et re)iew !ll of the a$o)e

Ma-or &ontents of an !nnual :eport would in&lude a Key 3erforman&e ?ata $ TrusteeGs :eport & ManagerGs :eport d !ll of the a$o)e

&> F'(A(C'A *A(('(@

1.

Finan&ial planning is an integrated pro&ess en&ompassing i Cashflow planning ii :etirement planning iii n)estment planning i) Tax planning a &

#.

%.

i  ii i7 ii  iii

$ d

i  iii !ll of the a$o)e

n finan&ial planning7 people are assisted with the following ex&ept    9 9 9

Cashflow planning :etirement planning Contingen&y 3lanning Family 3lanning n)estment 3lanning Tax planning

a $ & d

  9   9 9 9  9

+hi&h of the following statements a$out finan&ial planning is false a 'hort term )olatility in returns will ha)e a greater impa&t on long term in)estors than on short term in)estors $ Henerally7 the older the in)estor7 the lower the ris0 he &an tolerate & The in)estorGs future finan&ial goals ha)e to $e expressed in future )alue >in terms of tomorrowGs :inggit d The most important thing in portfolio design is to put the &lientGs needs and wants first


64

Anse!s to #$C% Q&EST'$(S SET A

1 # % ( / 2 5 ; " 16 11 1# 1% 1( 1/ 12 15 1; 1" #6

B C ! ! ! B ! B C B ! B C ? ? C B ! ? ?

#1 ## #% #( #/ #2 #5 #; #" %6 %1 %# %% %( %/ %2 %5 %; %" (6

? ? ! B ! ! ! ? ! B ! C ? C ! ! B ! C B

(1 (# (% (( (/ (2 (5 (; (" /6 /1 /# /% /( // /2 /5 /; /" 26

B C ? ? C ! B B ! C ! B ! ! ? ? ? C ! ?

21 2# 2% 2( 2/ 22 25 2; 2" 56 51 5# 5% 5( 5/ 52 55 5; 5" ;6

? B ! B ! B ? B ! B ? ! C C C B ? C C B

! B B ! B B ? C ! ! ! C C ! B ! C ? B B

#1 ## #% #( #/ #2 #5 #; #" %6 %1 %# %% %( %/ %2 %5 %; %" (6

? ? ? ! B B ! B C B B B B ! C C ! B ? C

(1 (# (% (( (/ (2 (5 (; (" /6 /1 /# /% /( // /2 /5 /; /" 26

C ? ! ? C ? B C C ? C B ? ! B ? ? C ? C

21 2# 2% 2( 2/ 22 25 2; 2" 56 51 5# 5% 5( 5/ 52 55 5; 5" ;6

? ? B ! ? ! ! B ! B ? ? ! ! C B ! C C C

SET B

1 # % ( / 2 5 ; " 16 11 1# 1% 1( 1/ 12 15 1; 1" #6


65

SET C

1 # % ( / 2 5 ; " 16 11 1# 1% 1( 1/ 12 15 1; 1"

! ! ! B C ? ? C C ? C B ? ! ? C ! ! !

#1 ## #% #( #/ #2 #5 #; #" %6 %1 %# %% %( %/ %2 %5 %; %"

! B ! ? ! C ! ? B ! C C B ! ! ! ! B C

(1 (# (% (( (/ (2 (5 (; (" /6 /1 /# /% /( // /2 /5 /; /"

! ! ! ? ? B B ! B B B B C ! C B ! ! C

21 2# 2% 2( 2/ 22 25 2; 2" 56 51 5# 5% 5( 5/ 52 55 5; 5"

C ? ! ! B ? B ? ! C ! C ! C ! ? ? ! ?

#6

C

(6

?

26

C

;6

B

! ? C ! B C C C B ? B ? ! C ? B ! ! B C

#1 ## #% #( #/ #2 #5 #; #" %6 %1 %# %% %( %/ %2 %5 %; %" (6

B B C ! ? B ! ! C ? ! C B C B ! ? ! ! B

SET D

1 # % ( / 2 5 ; " 16 11 1# 1% 1( 1/ 12 15 1; 1" #6

SET E

! ! B C ! C C C ! C ! C ! B ? ! C ? ! ?

1 # % ( / 2 5 ; " 16 11 1# 1% 1( 1/ 12 15 1; 1" #6


SET F

! B B B ? C ! ! C ? ! B ! C C ! ? C ! B

1 # % ( / 2 5 ; " 16 11 1# 1% 1( 1/ 12 15 1; 1" #6

66

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