FAQ

09. Charges, Calculations, Income Distribution

1) What kind of charges do I have to pay?
2) How do I find out about the sale charges of the each funds at Fundsupermart?
3) What is bid/offer price and Net Asset Value (NAV)?
4) How do I calculate the amount of units? (Bid/NAV Priced Funds)
5) What is Weighted Average Cost (WAC)? How do you derive WAC?
6) How does Fundsupermart distribute dividends from funds?
7) Where can I view the historical record of dividends such as historical dividend rates and frequency?
8) How do I view my dividend payout records in my Fundsupermart account?
9) How do you calculate dividend amount and reinvestment units?
10) What is Ex-Date?


Q: What kind of charges do I have to pay?

A: There are 2 types of charges. One is the sales charge and the other is the annual expense of the fund.

The normal sales charge for most equity funds are around 7%. However, at Fundsupermart, the advantage is that most equity funds are sold at around 1.75% sales charge. The sales charge is applied at purchase.

The annual expense of the fund is what is charged to the fund. This includes the fund manager's annual management fee, and other administrative fees that are incurred in the running of the fund. You do not really need to fork out additional money to pay for the annual management charge to the fund manager. They will actually deduct it from the Net Asset Value of the fund daily, and the published price will take into account of the pro-rated annual management charge.

 
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Q: How do I find out about the sale charges of the each funds at Fundsupermart?

A: You can find the information under the FUNDS INFO-> FUND SALES CHARGES-> BUY/SELL.
 
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Q: What is bid/offer price and Net Asset Value (NAV)?

A: The Bid Price is the price at which you sell an investment (the fund manager "bids" for your units at this price).

The Offer Price is the price at which you buy an investment (the fund manager "offers" to sell you the units at this price).

The Net Asset Value (NAV) is the market value of a unit trust's total assets, minus liabilities, divided by the number of units or shares outstanding. So it is the price per unit of the fund. This value is used to determine the prices for subscribing and redeeming units.

 
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Q: How do I calculate the amount of units? (Bid/NAV Priced Funds)

A:

Bid/NAV Priced Funds

Example :

  • NAV price : RM0.50
  • Normal sales charge : 7%
  • Fundsupermart sales charge : 1.75%
  • Investment Amount : RM10,000
Buy at 7% normal sales charge

If you invest RM10,000 into the fund at the normal sales charge of 7%, you will receive 18,691.588 units.

Investment amount = RM 10,000/1.07

= RM 9345.794

Units = Investment Amount /NAV price

= RM9345.794 / RM0.50

= 18,691.588 units

Buy at 1.75% Fundsupermart sales charge

If you invest RM10,000 into the fund at the lower sales charge of 1.75%, you will receive 19,656.02 units.

Investment amount = RM 10,000/1.0175

= RM 9828.01

Units = Net Investment Amount /NAV price

= RM 9828.01 / RM0.50

= 19,656.02 units

 
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Q: What is Weighted Average Cost (WAC)? How do you derive WAC?

A: Weighted Average Cost (WAC) in your ‘View Holding’ table is the actual cost per unit (or in other words, the breakeven price) of your holding after taking the sales charges into consideration.

Calculation of WAC is gross amount invested divided by the number of units. As the gross amount takes into consideration the sales charges that you pay when you purchase the fund, hence the WAC will be higher than buying price.

 
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Q: How does Fundsupermart distribute dividends from funds?

A: Distribution of income methods is pre-determined at Fundsupermart.

All distribution of income (if any), on behalf of you, will be reinvested in units of the relevant Fund through the subscription by Fundsupermart except RHB Institutional Islamic Money Market Fund. Dividend (if any) for RHB Institutional Islamic Money Market Fund will be paid out by cash.

You will see additional units in your fund holdings. They will be reflected under your historical transactions as a purchase. You will also receive an online statement via email with regards to the transaction. All dividend reinvestment will not result in an increase in the cost of investment. The rationale for doing so is that dividend is not an injection of new monies by the investors as such it should not increase the cost of investment. By not reducing the cost, the weighted average cost as a result decreases with every dividend reinvestment.

 
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Q: Where can I view the historical record of dividends such as historical dividend rates and frequency?

A: Historical records of dividends declared can be viewed under the ‘Fund Info’ section in the fund factsheets.
 
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Q: How do I view my dividend payout records in my Fundsupermart account?

A: You may find the historical dividend records in your account after log in. Please go to My Investments > View Holdings > By Fund Name. After that, click on ‘Historical Transactions’ button and you will be able to view the dividend payout that had been reinvested in units under your FSM account under 'Remarks' column.
 
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Q: How do you calculate dividend amount and reinvestment units?

A: Reinvestment units = Dividend Amount/ Reinvest Price

Note: Dividend rate and reinvestment price are determined by the fund managers. Historical records of dividends declared can be viewed under the ‘Fund Info’ section in the fund factsheets.

 
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Q: What is Ex-Date?

A: This is the date on which the investors will be entitled to a recently announced dividend if he/she still hold the fund.
 
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For further assistance, call our hotlines at 03 - 2149 0567 or 04 - 640 1567 (northern region).