Author Topic: Single Pricing System enforce in April 2007  (Read 1583 times)

Offline jeybon

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Single Pricing System enforce in April 2007
« on: December 26, 2006, 01:12:26 PM »
Federation of Malaysian Unit Trust Managers (FMUTM) had just announced the single pricing system for all unit trusts effective April 2007.

That means, the unit trust price that is show in the press won't include the initial fees.  Initial fees will be charged separately. 

How would you all think this would impact the industry?

Offline DenLee

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Re: Single Pricing System enforce in April 2007
« Reply #1 on: December 31, 2006, 10:09:19 AM »
Good news.  I think most trust companies would revise their initial service fees lower to the range of 2.5% to 5% of NAV since the price of unit trust will no longer be reflected in the buy/sell value.  Those fees will be charge straight to the customer the moment they buy.  However, annual fees will still be charged accordingly.