Switching for Mutual Gold Member (Mutual Gold Qualifying Points, MGQP = RM 100K and above) is 18 times per annum and Mutual ELITE Gold Member (MGQP = RM 500K and above) is 30 times per annum.

FYI, Unit Trust provides good yield on a longer time horizon even without any active management. Based on the latest Quarterly Fund Report, QFR Q4 2010, for those who has invested for a period of 10 years in most of the equity funds, have generated an average Annualised Return of 10%pa++ (kindly retrieve a copy of the latest QFR from your UTC).

If one has invested in Public Savings Fund, PSF (Public Mutual Oldest Fund) from 31st December, 2001 till 31st December, 2010, one would have made a Total Return of 214.45% and an Annualised Return of 12.12% pa. This result is obtained without clients making any switches in the past 10 years despite major disasterous events such as 9-11 (2001), War against Terror in Afganistan (2002), SARS (2003), War Against Terror in Iraq (2003), Tsunami (2004), US -Subprimed Mortgaged Crisis (2008), Pandemic H1N1 (2009) and Euro Crisis (2010)

Switching process is only applied when UTC would like to perform a portfolio rebalancing for fellow investors. Portfolio rebalancing is done as to optimise clients profit, based on his or her objective over given time horizon without taking any unnecessary risks. We foresee clients investment will grow in time. As time developed, clients objective will have shorter time span to ride out any market volatility. Hence, more switching will be done from equity to bond or money market funds as to ensure clients objective is secured. That is the reason why Public Mutual is giving more switching opportunities for Mutual Elite Gold Members.

Unit Trust investment is designated for investor who has money but time to conduct his or her own investment researches and management. Hence, they engage Public Mutual Fund Manager to manage their investment by servicing an upfront fees of 5.50% for Cash and 3.0% for EPF, 1.50%pa on Yearly Management Fee and another 0.8%pa on Trustees Fee.

It defeated the purpose of having to pay so much to Public Mutual while clients are still doing their own researches and switches based on their wits.

For further enquiries pertaining to switching, you are welcome to write in to me at danielle.hu@hotmail.com
Best regards,

Danielle Hu
Unit Trust Consultant
Public Mutual Berhad
Million Dollar Producer, 2010
22nd NSC Trip Qualifier, 2010