Unit Trust

Unit Trust is an investment product commonly classified under Collective Investment Scheme. In this product, investors’ funds are pooled together by a Fund Manager who invests the Fund within prescribed parameters found in the Prospectus. The minimum amount to be invested is usually SGD1,000 and some funds accept investments from CPF Accounts. The investor is given Units as a measure of his investment in the Fund. These units are priced in either Net Asset Value ( NAV ) or Bid and Offer Price. Typically, Unit Trust has an upfront Sales Charge (also known as front-end load) which may be as high as around 5%. This is charged at the time of purchase. Annually, there is a Management Fee which is usually around 1.5% which will be factored into the daily price of the fund.

The investor is strongly encouraged to read the Prospectus and be comfortable with these parameters before investing into the Unit Trust.

An Advisory Non-Wrap Account is a set of Unit Trust investments held by an investor. "Switching" of Unit Trust means the Purchase of Unit Trust against the Sale of currently held Unit Trust. The Purchase of Unit Trust will entail new Sales Charge for each Unit Trust that is switched in. And there may be a "switching fee" if the funds are managed by the same Fund Manager. There may also be a new Sales Charge if the Fund to be switched into is managed by another Fund Manager. The decision on which Unit Trust to "Switch" rests with the investor who may act on the advice given to him by his Financial Advisor Representative.

Advisory Wrap Accounts operate in the same manner as the Non-Wrap Accounts. The only difference is that in such accounts, there is no "switching fee" or new Sales Charge payable by the investor for any new Unit Trust switching transaction. Instead, there is a Wrap Fee of between 1.00% to 1.50% that is charged on an annual basis.

This Wrap Account allows the investor to unlimited number of switches per year.