Except for OSK-UOB Cash Management Fund, purchases for which payment is received by FSM before 3PM on a working day is transacted on the same day, i.e. you will purchase units based on NAV pricing of that day. However, NAV pricing for most funds will only be published by the Fund House after 5PM on the next working day (T+1).

Purchases of funds at FSM will be fully processed at T+4, "T" being Transaction Date.
On T and T+1, your order will be under processing.
On T+2, FSM will price your order, your price transacted and no. of units purchased will be known.
On T+3, your priced order would be still "floating".
On T+4, your order will be incorporated into your holdings summary, purchase order is therefore fully completed.

First of all, understand what is NAV price. I always like to explain things by using simple examples. Here goes...

- Fund ABC issues 1 million units at Initial Offer Price of RM1.00 per unit.
- As such, at Day 1, NAV of ABC is 1 million units x RM1.00 = RM1 million. NAV price is RM1.00.
- After the end of the Initial Offer Period, ABC starts to operate, it starts to invest.
- Let's say ABC bought RM200,000 worth of Maybank shares, RM300,000 of Dutch Lady shares and RM500,000 of BAT shares.
- Let's say after 1 month,

Market value of holdings
Maybank RM180,000
Dutch Lady RM360,000
Guinness Anchor RM400,000
BAT shares were sold off during the month
Total value of equities held: RM940,000
Cash: RM50,000 (dividends received from BAT)
Total value of net assets i.e. NAV: RM990,000
NAV price per unit: RM990,000 / 1 million units = RM0.9900

Ah Beng says: "ABC is now cheaper, can buy!"
Answer:
NO! You cannot determine the "cheapness" of a fund by looking at its NAV price alone. We can only deduce that the ABC had made an NAV loss of 1% during the 1-month period, but you cannot say that it is "cheap".
The fund could have bought Maybank when it was overpriced, and now its holdings of Maybank had gone down 10%. Maybank is now cheap!
Guinness Anchor could be oversold, thus ABC sold its holdings of BAT and bought into Guinness Anchor. Another undervalued stock in ABC's holding!
However, Dutch Lady have rallied 20% in the past 1 month, it could be overbought i.e. expensively valued now.

Simply said, you determine the "cheapness" of a fund by reference to its underlying holdings. The NAV price CANNOT give you a single clue as to whether it is an opportune time to buy into a fund.

Let's say u are looking at a fund which focuses on plantation stocks. Plantation stocks on the KLCI could be oversold, went down 20% in the past 1 month yet the fund only recorded an NAV loss of 5% in the same period. You might think, "aiya, only -5%, the fund is still expensive, don't want buy in now lah". But you could be terribly wrong; it could be that the fund was sitting on a heavy cashpile during the past 1 month, hence it did not lose much. But plantation stocks are now trading at a discount, it is an opportune time for the fund to buy!

Of course, all this is based on the assumption that the fund manager is not stupid.
If the fund manager still sits on its huge cashpile and refuses to enter the market, then later when plantation stocks rally up 30% the fund could still be sitting there with -5%/+5%.

Put it simply, dividend is just "left hand go right hand"; there is ZERO IMPACT to the investor's value of holdings.

- Fund XYZ has 100,000 units issued, initially issued at RM1.00
- Current NAV price is RM1.02
- XYZ declares a "10% dividend" of 10 sen a unit
- After the dividend, the NAV will go down to RM0.92

For sake of illustration, we assume that dividends are paid out in cash (not reinvested), and no tax on the distribution.

Ali says: "Eh XYZ very good, gave me 10% returns..."
Answer:
WRONG! The 10% is expressed by reference to the Initial Offer Price of RM1.00 (RM1.00 x 10% = 10 sen). It does not mean that the fund made a profit of 10% for investors. In this scenario, the fund actually only made a return of 2% (RM1.00 + 2% = RM1.02) during the period.

Simply said, just imagine you pass me RM100 to invest in a trolley cart. 1 year later the trolley cart become worth RM92, and I collected rental income of RM10 on your behalf. The value of your investment is now RM102. I then decide to return 10% i.e. RM10 to you. So now u have a RM92 trolley cart and RM10 in cash on hand. The "dividend" that I decided to give you has ZERO IMPACT on the net worth of your investment, which remain at RM102.

Here's another variation to the scenario above; your RM100 investment could actually have incurred a loss, and I could still decide to "reward" you with a 10% "dividend". Let's say a wheel on your trolley was damaged, now your trolley is only worth RM60. The value of your investment is now RM60 + RM10 (rental income received in cash) = RM70. But I could still proudly say that I'm declaring a 10% "dividend" to reward you

Key Lesson Point
A unit trust fund can declare dividend even when it has actually made its investors@unitholders poorer. By regulation, a unti trust fund can only declare dividend out of its REALISED INCOMES (interest income, dividend income, net proceed from sale of investments, rental income etc). Gains from market price fluctuations are not realised, i.e. they're "paper gain/(loss)". So, you could be having
(a) Fund A got realised incomes from which to declare dividends, even though during the same period it has huge paper losses.
(b) Fund B made lots of paper gains from market price movements, but it cannot/decided not to declare dividend to unitholders because of insufficient realised incomes. Bear in mind, some funds actually have a "no dividend" policy, and they are great performers.

Just a simple example to illustrate, but that's essentially how it works...

You hold 100 units at RM1.00 each. RM1.00 x 100 = RM100
Let's say you get 10 units extra from distribution. After distribution you hold 110 units at RM0.9091 each. RM0.9091 x 110 = RM100

Now, let's assume you top up RM10 after ex-date,
RM10 / RM0.9091 = 11 units bought

Value of your holdings now:
(110 + 11) x RM0.9091 = RM110

Initial value: RM100
Top up: RM10
Total: RM110

Yes, topping up after distribution ex-date brings your unit cost down. BUT AT THE SAME TIME the value per unit i.e. NAV price also comes down - IT MAKES NO DIFFERENCE whether you top up before or after ex-date. Cost per unit in UT means little in isolation, the difference between cost per unit and NAV price multiplied by your units held is what matters.

In such scenario, whether the fund makes distribution or not also you will gain!

To avoid confusion, DON'T THINK ABOUT NAV PRICE, think VALUE (no. of units held x NAV price).

E.g.

Got distribution
One day before ex-date you hold RM1,000 (RM1.0000 x 1,000 units)
The next day its ex-date AND (assuming) distribution is also credited on the same day, you also hold RM1,000 (RM0.9091 x 1,100 units), let's assume that you got 100 units from the distribution.
The fund's underlying investments gained 8% in the next 3 months
Your holdings: (RM0.9091 + 8%) x 1,100 units = RM0.9818 x 1,100 units = RM1,080

No distribution
Your holdings value: RM1,000 (RM1.0000 x 1,000 units)
The fund's underlying investments gained 8% in the next 3 months
Your holdings: (RM1.0000 + 8%) x 1,000 units = RM1.0800 x 1,000 units = RM1,080

Distribution is very relevant especially to retiree investors who want a source of income. For this type of investors, basically what they can do is to invest in a fund that has a distribution policy, and elect to receive distributions in the form of CASH. To an investor who elect to receive distributions in cash, distributions are a form of income, a cash inflow; gains in NAV price are capital growth.

E.g. upon retirement you have RM1mil which you invest in a fund. The fund that you invested in made a return of 10% and declares 8% as dividend for the financial year, that's RM80,000 of cash inflow for you! Of course, when a distribution is declared and paid, the NAV price will drop proportionately. The balance of 2% that are not declared as distribution will be reinvested for future growth.

NAV stands for "Net Asset Value", an accounting term which simply means the value of TOTAL ASSETS less TOTAL LIABILITIES.

In unit trust accounting, Annual Management Charge and Trustee Fee are accrued daily and reflected in the NAV pricing. Now let me explain by using a simple example...

- The annual salary for the Fund Manager of Huat Huat Equity Fund is fixed at 1% of the Asset Under Management (AUM)
- As at today, value of AUM for Huat Huat is RM100M
- Fund size of Huat Huat is 100M units

Just like most of us, the FM's salary is paid monthly in arrears. But for the purpose of accounting, it has to be accrued daily. Thus, as at end of today, Huat Huat would have total assets of RM100M and a LIABILITY in the form of the FM's 1-day unpaid salary.

NAV for Huat Huat today is:
RM100M - (RM100M x 1% x 1/365)
= RM100M - RM2,739.73
= RM99,997,260

NAV price today:
RM99,997,260 / 100M units
= RM0.9999

Investors do not need to separately pay for the Management Fee and Trustee Fee, these charges are already deducted from the value of our holdings.

A: Most of the unit trusts in Malaysia are priced based on "forward pricing". This means that if you transact today, you will get the fund’s value as of the closing price of the market today. However, you will know the price in two working days
The price that you could see in the website is the so-called 'indicative price'. This is usually the price of the fund two working days ago. This indicative price is NOT the actual transaction price of the fund that you are buying or selling.

Generally, the fund manager requires approximately two business days to consolidate and derive a unit price for the funds. These prices are further valued independently by the fund's trustees. Therefore, the dealing price will be made known to the public two business days after the transaction date. Once we obtained the price, an email notification will be sent to you.

A: Generally all cash orders will be completed within four business days (T+4) from the day they are transacted.
The transaction cycle for EPF Account 1 will generally take longer time to process compared with cash subscription. Although the transaction date(T) for most fund subscriptions through EPF Account 1 would be the same business day which the required documents are received by Fundsupermart before 3pm, (except AmBon Islam, TA Income Fund and funds under the management of Pheim Unit Trust Berhad),the orders will remain in processing status until the confirmation of successful EPF Account 1 withdrawal.

Once the transaction cycles are completed,your units will appear under your holdings.

All units are priced on the transaction date (T).

A: Cash Investment:
All sell orders submitted before 3pm on a business day will be transacted on the same day. Orders received after 3pm or on a non-business day will be transacted on the next business day.

Exceptions:

i)The sell order of the following fund will be priced on 9 business days after the order placement date (T+9):

Opus Dynamic Income

ii)The sell order of the following funds will be priced 1 business day after the order placement date (T+1):

Opus Cash Extra

Opus Shariah Cash Extra

EPF Account 1:

Redemption orders, for funds invested through your EPF Account 1, will be processed on the same business day whereby the in-house redemption form is received before 3pm. Documents received after 3pm or on a non-business day will be processed on the next business day.

A: A: For Cash Investments:
The following redemption period for redemption proceeds to reach you applies:

T+2 business days for
- AMB Dana Nabeel
- Eastspring Investments Islamic Income Fund
- Opus Dynamic Income Fund (after transaction date)
- Opus Global Income Fund (after transaction date)
- RHB Cash Management Fund 2
- RHB Institutional Islamic Money Market Fund
- RHB Money Market Fund
T+3 business days for
- Opus Cash Extra Fund
- Opus Shariah Cash Extra Fund
T+5 business days for
- All Franklin Templeton Asset Management (M) Sdn Bhd Funds
- All PMB Investment Berhad Funds
- All TA Investment Management Berhad Funds
- All CPAM Funds except USD class and PRS Funds
- Eastspring Investments Asia Pacific Ex-Japan Target Return Fund
- Pacific Cash Fund
- United Asian High Yield Fund - MYR
- United Income Plus Fund
T+6 business days for
- All Aberdeen Islamic Asset Management Sdn Bhd Funds
- All AIA Pension and Asset Management Sdn Bhd Funds
- All Amanah Mutual Berhad Funds
- All Pacific Mutual Fund Bhd Funds
- All NIKKO Asset Management Asia Limited Funds
- Affin Hwang AIIMAN Select Income Fund
- Affin Hwang ASEAN Flexi Fund - MYR Class
- Affin Hwang China Growth Fund
- Affin Hwang Select Series Funds except AUD class & SGD class
- AmIslamic Greater China
- CIMB-Principal ASEAN Total Return Fund - USD
- Global Multi-Asset Income Funds
- RHB European Select Fund
- RHB Global Equity Stabiliser Fund
- RHB Global Food Islamic Equity Fund
- RHB Islamic ASEAN Megatrend Fund
- RHB Global Macro Opportunities Fund
T+7 business days for
- All Eastspring Investments Foreign Funds
- All Maybank Asset Management Sdn Bhd Funds
- All UOB Asset Management (M) Berhad Funds except United Asian High Yield Fund - MYR United Income Plus Fund
- Affin Hwang Japan Growth Fund
- Amundi International Fund
T+8 business days for
- Affin Hwang Dividend Value Funds
- Affin Hwang Select AUD Income Fund - AUD
- Affin Hwang Select SGD Income Fund - SGD
- Affin Hwang European Unconstrained Funds
- Affin Hwang Global Equity
T+11 business days for
- All CPAM PRS Funds
- BIMB-Arabesque i Global Dividend Fund 1 - MYR
- RHB-OSK Pre-IPO & Special Situation Fund 2
- RHB Pre-IPO & Special Situation Fund 3
Generally T+4 business days for all other unit trusts.
'T' date is the day where your sell order is transacted. You will be notified of this via an email. There are three methods for us to credit the proceeds to you:

1) Cash Management Fund:

When you sell a unit trust but want to wait before you buy another, you may park the sales proceeds in the Cash Management Fund first.

You may indicate the “Cash Management Fund” as the redemption method when you sell. The sales proceeds will be used to buy into the Cash Management Fund on the settlement date of the sell order.

To know more about the Cash Management Fund, click here

2) GIRO Transfer:

If your bank account is opened in Malaysia, we will transfer your redemption proceeds directly into your designated bank account on Settlement Date.

To update your bank account, go to MY INVESTMENTS-> UPDATE ACCOUNT-> REDEMPTION INSTRUCTION.

B: For EPF Account 1:

The redemption proceeds will be credited back into your EPF Account 1 within 10 business days by the fund manager.

A: Cash investments
The switch-sell and switch-buy orders will be transacted on the same business day the order is received before 3pm. Otherwise it will be transacted on the next business day.

However, please note that there are 2 business days lag time should you switch buy into RHB Money Market Fund, RHB Income Fund 2, RHB Institutional Islamic Money Market Fund and 1 business days lag time if you switch buy into CIMB-Principal Equity Growth & Income Fund, CIMB-Principal Greater China Equity Fund, CIMB-Principal Income Plus Balanced Fund, CIMB-Principal Global Titans Fund, CIMB-Principal Australian Equity Fund, CIMB-Principal Strategic Bond Fund, CIMB-Principal Asia Pacific Dynamic Income Fund, AmSchroder European Equity Alpha Fund and Kenanga Asia Pacific Total Return Fund.

EPF investments

The switch-sell and switch-buy orders will be transacted on the same business day the fund manager in-house switching form is received before 3:00pm. Otherwise it will be transacted on the next business day.

NOTE:

The whole process of an Intra switch (for BOTH cash and EPF Account 1 investments) will take four business days to complete after the transaction date (T) of the switch sell & buy funds i.e. T+4 business days.

A: The switch-sell order will be transacted on the same business day the order is received provided the order is received before 3pm. Otherwise, the order will be transacted on the next business day.
The switch-buy order will be transacted based on the lag time as described in the table shown at FUNDS INFO-> FUND SALES CHARGES-> SWITCHING-> INTER FUND HOUSE. However, this lag time will be shorter than executing the sell and buy transactions on your own.

NOTE:

The whole process of an Inter switch will take four business days to complete after the transaction date (T) of the switch-buy funds ie T+4 business days.