Actually SCB is just the seller. All banks practice this. They want to make money off you especially in your case priority banking. Then RHB here is like the farmer.

That's why don't buy anything from banks. Dont accept any priority banking BS. You want to be priority banking, be prepare to buy stuff from them or park your money with them or take huge amount of loan from them.

You mind sharing the product that you purchased?

Oh okay the heritage series. My 2cents only, do correct me if I am wrong.

The heritage income is basically a feeder fund that feeds into Fullerton SGD Income Fund (Target Fund). It is required to invest 95% of its NAV in the target fund and remaining may be used for liquidity purposes. The management fee can only be charged once to the unit holder namely either on feeder fund or target fund. There is no benchmark for this fund because its not a mandatory requirement (also they have removed this requirement for retail funds as well).

For target funds especially those establish as a UCIT fund in Europe i.e. in Dublin or Luxemburg, it's common for funds to distribute out of capital. It's not a loop hole especially for feeder fund and on top of that you are suppose to be a sophisticated investor to invest in a wholesale fund.

In Malaysia, the regulators have also relax provisions (however additional disclosures required) to enable distribution out of capital.

In your case, I had a quick glance of the annual and semi annual report for both feeder and target fund, I didn't note that there was any payment made out of capital. IF someone see any indication, do let me know. The fund seem to have exposure in Asia (I think Asian fixed income aren't all that hot right now) and some in China as well and some real estate. That probably explain some of the erosion in the performance of the fund. 

I think foreign source income may also have an impact on the income derived abroad but do check with your RM on that as well.

Quite interesting fund.
I think ultimately depends on a lot of factors, like fund manager (same fella who has been managing the fund for 10 years+), changes in regulatory or law (example introduction of 30% WHT by US or Foreign Source Income), thematic funds (tech fund, becomes obsolete with AI) etc...

Each fund goes through a particular cycle but if you are just plain lazy (like me) haha... probably go for conventional strategies like Growth, Balance or Income, let the fund manager asset allocate throughout the economic cycle but be mindful if you intend to go geographic, thematic or instrument specific.

It had been told and discussed previously in lyn...
For UT, after the distribution , the NAV of the fund will drops