Set 2 Questions & Answers 010808

Set 2 3. Mr. Dave invested regularly for the past 3 months. His total
investment is RM4, 500. What is the average price of his
1. Arrange accordingly from the highest risk fund to the lowest risk investment?
fund.
A. RM0.60 C. RM0.43
i. Equity Fund B. RM0.59 D. RM0.56
ii. Money Market Fund
iii. Balanced Fund Answer B
iv. Hedge Fund Total investment = RM4,500
Total units = (RM1,500/RM0.50) + (RM1,500/RM0.60) +
A. i, ii, iii, iv C. iii, iv, ii, i (RM1,500/RM0.70)
B. iv, i, iii, ii D. i, iv, iii, ii = 3000 + 2500 + 2142.88
= 7642.88
Answer B Average price of his investment
Hedge Fund is the most risky, followed by Equity Fund, Balanced = Total investment/Total units
Fund (which has equity exposure) and Money Market Fund. = RM4,500/7642.88
= RM0.59
2. The unit trust funds that are available in the market could be
designed to meet the following investor’s requirement: 4. How many units Mr. Dave had by the end of May?
A. 5,500 C. 4,500
A. Long term savings C. Retirement Fund B. 7,643 D. 4,000
B. Children’s Education D. All of the above
Answer A
Answer D Total units for 2 months (April and May)
Unit trust is a medium to long term investment tool to meet = (RM1,500/RM0.50) + (RM1,500/RM0.60)
investor’s long term objectives. = 3000 units + 2500 units
= 5500 units
For question 3 & 4, please refer to the data given below.
5. A 20 year old employee, who belongs to Stage 1 of the client type,
Month NAV/unit has very little savings but possesses low commitments and is very
April RM0.50 skeptical in investing unit trust. However he has high toleration for
May RM0.60 risk. Which of the following should he invest in?
June RM0.70
A. Growth Fund C. Income Fund
B. Hedge Fund D. Balanced Fund

Answer A

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Set 2 Questions & Answers 010808

He or she can start building a small nest egg by investing into Answer B
growth oriented UTS. Perhaps some additional risk can be taken The price of any listed securities is determined by buyers and
by investing in more specialized and aggressive UTS. He or she sellers in the market. (Chapter 1, page 1-12)
may be able to tolerate higher volatility in investment returns over
the short-term, as the focus will be on returns over the long 9. Which of the following propositions a UTC should not practice?
periods. (Chapter 5, page 5-7)
A. “The market is going up, you should come in now, capital
6. Capital Market Masterplan introduced a host of recommendations appreciation is assured”.
to further spur the Islamic capital market. Parts of the efforts were B. “If you can’t invest it doesn’t matter, you can always loan
to enhance awareness of the Malaysian Islamic capital market to from the bank”.
domestic and international levels. Which recommendation does C. “Invest in equity fund now, you stand a chance to win a
this belong to? free welcome gift”.
D. All of the above
A. Recommendation 77
B. Recommendation 66 Answer D
C. Recommendation 65
D. Recommendation 73 10. Which of the following has the highest volatility of price?

Answer D A. Bond Fund

(Chapter 6, page 6-3) B. Aggressive Growth Fund
C. Money Market Fund
7. Kumpulan Guthrie Bhd launched its first international corporate D. Income Fund
bond in
Answer B
A. 2000 C. 1997 Equity UTS labeled “aggressive growth” generally invest in
B. 1999 D. 2002 companies with higher capital growth potential, but with
associated higher risk. (Chapter 1, page 1-13)
Answer D
(Chapter 6, page 6-4) 11. Rahim and Kajai invested RM64,000. Rahim received returns of
8.5% per annum. As the years went by, both doubled their
8. Which of the following best describes a close ended fund? investment. Kajai received his returns faster by 1.27 years. What is
Kajai’s rate of return?
A. Units are not quoted in an exchange.
B. Prices are determined by the market forces of demand and A. 8.5% C. 10%
supply in Bursa Malaysia. B. 12% D. 17%
C. Prices remain unchanged throughout trading day.
D. Forward pricing is practiced. Answer C

2
Set 2 Questions & Answers 010808

Use Rule of 72 Answer C

Rahim received his returns in 8.47 years (72/8.5) Maximum amount = RM150,000 x 67% = RM100,500
Kajai = 8.47 years – 1.27 years = 7.2 years
Kajai’s returns = 72/7.2 = 10% 15. The unit holders rights in UTS include the following except:

12. What do you understand about 1:2 unit split? A. To receive UTS annual and interim reports.
B. To call meetings for unit holders.
A. The units in circulation will be doubled C. To receive distribution from UTS.
B. The price will be doubled D. To change the investment portfolio.
C. The prices will proportionally decreased
D. All of the answers are incorrect Answer D
Unit holders do not have rights to decide on the investment
Answer D portfolio - loss of control. (Chapter 1, page 1-5). Unitholder’s
right. (Chapter 1, page 1-27)
13. Which statement is correct?
16. Tax rate = 20%
Fund X Fund Y Inflation rate = 5%
80% Equity 20% Equity Rate of return = 10%
20% Fixed Income 80% Fixed Income Please calculate the effective rate of return after tax and inflation.

A. If the market falls, X will be more negatively affected than Y. A. 3% C. 10%

B. If the market rises, both X & Y will be negatively affected. B. 5% D. 20%
C. If the market falls, X will be more positively affected than Y.
D. None of the above is correct. Answer A
Return after tax
Answer A Rate of return – (Rate of Return x Tax Rate)
The performance of most equities is closely linked to the market = 10% - (10% x 20%)
performance. A rising share market will normally result in an = 10% - 2%
increase in the value of units in equity UTS, and vice versa. = 8%
(Chapter 1, page 1-13) Effective rate of return
Return after tax – inflation rate
14. Mr. A wants to invest RM150,000. What is the maximum amount = 8% - 5%
can he borrow from the financial institution? = 3%

A. RM200,000 C. RM100,500 17. When comparing the performance of a fund over a period of time,
B. RM66,000 D. RM120,000 a decreasing MER will indicate?

3
Set 2 Questions & Answers 010808

A. The UTMC is not managing the total fees and expenses benefit, as units can be bought and sold readily through UTMC,
well. IUTA and UTC.
B. The UTMC is managing the total fees and expenses well.
C. The NAV of the fund is rising. 20. Dollar cost average is:
D. The NAV of the fund is falling.
A. Buy low sell high
Answer B B. Buy high sell low
A gradually decreasing MER over a period of several years C. Regular investment at a fixed amount of money
indicates that a UTMC may be managing its operating costs D. Buy fixed unit every time
efficiently for its fund size. (Chapter 1, page 1-32)
Answer C
18. One of your friends tells you, “By the time I retire in year 2020, I The concept refers to the systematic and regular investment of a
believe KLCI will be many times what it is today. I am happy with fixed amount of money, irrespective of the price level of the
that. Give me a fund that can best deliver the same result.” What investment at the time the investment is made. (Chapter 3, page 3-
would you recommend to him? 30)

A. Buy a growth fund because it can give him a return better 21. Mr. Ahmad made his first investment at the price of RM0.20. He
than KLCI by year 2020. puts in more money on the second investment and got 10,000
B. Buy a balanced fund because its investment return are less units. He made redemption a month after that and receives
volatile than the KLCI. RM15,000 for RM0.25 per unit. How much did he invest at his
C. Buy an index trading fund using KLCI as benchmark. first investment?
D. For such a long investment horizon, don’t worry buy any
fund. A. RM15,000 C. RM5,000
B. RM10,000 D. RM20,000
Answer C
Answer B
19. What is the meaning of liquid advantage offered by unit trust Number of units held during redemption:
scheme? RM15,000/RM0.25 = 60,000 units
A. As liquid as cash. Second investment = 10,000 units
B. Able to purchase or redeem on any business day. First investment = 60,000 units – 10,000 units
C. Buys more unit trust on rising and less on falling market. = 50,000 units
D. None of the above. Amount invested = 50,000 units x RM0.20
= RM10,000
Answer B
One of the benefits of UTS is ready access to funds, the investment 22. What is the purpose of UT performance table?
can easily be sold within a short period time. UTS provide this
A. For SC to regulate the funds.

4
Set 2 Questions & Answers 010808

B. For FMUTM to regulate the funds. 25. What is the NAV per unit of Fund A ex-distribution?
C. Segregation of funds into different categories according to
the fund size. A. RM1.50 C. RM1.40
D. To provide investors with the same means to monitor and B. RM1.45 D. RM1.38
evaluate the performance of the fund.
Answer C
Answer D NAV/unit cum-D =NAV/units in circulation
UTS performance tables published by research houses endorsed by =RM150,000,000/100,000,000
FMUTM can be a useful tool for monitoring investment =RM1.50
performance. (Chapter 1, page 1-37) NAV per unit ex-D =NAV/unit cum-D-distribuiton
=RM1.50-RM0.10
23. Islamic UT invest only in halal counters such as: =RM1.40

A. Conventional banking 26. What is the NAV per unit of Fund A cum-D?
B. Telecommunications
C. Gambling A. RM1.50 C. RM1.40
D. Alcohol B. RM1.45 D. RM1.38

Answer B Answer A
(Chapter 6, page 6-13) NAV/unit cum-D =NAV/units in circulation
24. Which of the below describes open ended funds? =RM150,000,000/100,000,000
=RM1.50
A. The price fluctuates within the day.
B. The fund manager has to buy back from the investor. 27. This fund invests mostly in stocks in listed companies, which
C. Transactions are through stock broker. emphasizes more in capital growth than fixed income and
D. They are property trust. distributions.

Answer B A. Equity Fund

Investor’s sales and repurchases of units in an open ended fund are B. Balanced Fund
transacted daily within UTMC, often with the assistance of UTC. C. Bond Fund
(Chapter 1, page 1-12) D. Money Market Fund

Question 25 & 26 are to be answered based on the following Answer A

The major portion of equity UTS portfolios are shares of listed
NAV cum-distribution of Fund A is RM150,000,000. Unit in companies. (Chapter 1, page 1-13)
circulation is 100,000,000. The fund declared distribution RM0.10
per unit, and the fund manager is charging 5% for service charge.

5
Set 2 Questions & Answers 010808

Question 28, 29 & 30 30. How long does it take to increase the investment amount to
Lump sum investment : RM100,000 RM200,000 with the effective rate of returns from question 28 &
Initial entry cost : 6.5% 29?
On-going management fee : 1.4%
Rate of Return : 11% A. 4.8 years C. 7.5 years
28. What is the return of the investment after 10 years? B. 6.3 years D. 7.2 years

A. RM233,839.11 C. RM233,547.23 Answer C

B. RM234,831.27 D. RM234,098.95 Rule of 72 = 72/9.6
= 7.5 years
Answer B
Working capital = RM100,000/(1+6.5%) 31. The published NAV in newspaper today is RM0.65. The price at
= RM100,000/(1.065) the end of the day is RM0.66. If Mr. Eddie invested RM10,000
= RM93,896.71 today, how many units is he getting if forward pricing is applied.
Effective Rate of Return = 11%-1.4% (Assume the 5% of service charge is applied)
= 9.6%
With the formula FV = PV ( 1 + i )n A. 14,430.02 units C. 15384.62 units
= RM93,896.71 (1+9.6%)10 B. 16,666.67 units D. 15,151.52 units
= RM93,896.71 (1.096) 10
= RM234,831.27 Answer A
Amount invested = RM10, 000
29. Assume that the initial entry cost decreased to 6%, what is the Wokring Money = RM10,000/(1+5%)
value of the investment after 10 years? = RM9523.81
Total units = RM9523.81/RM0.66
A. RM233,839.11 C. RM235,938.96 = 14,430.02 units
B. RM235,089.59 D. RM234,098.95
32. In Annual Report of ABC Millennium Fund, expenses incurred by
Answer C the fund during the financial year:-
Working capital = RM100,000/1+6% Annual Management Fee : RM3,528,673
= RM100,000/1.06 Trustee : RM150,326
= RM94,339.62 Auditor’s Remuneration : RM16,300
Effective Rate of Return = 11%-1.4% Administration expenses : RM28,418
= 9.6% Average Fund Size : RM235,300,528
With the formula FV = PV ( 1 + i )n What is the MER of this fund?
= RM94,339.62(1+9.6%)10
= RM94,339.62 (1.096) 10 A. 1.50% C. 0.07%
= RM235,938.96 B. 1.58% D. 0.01%

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Set 2 Questions & Answers 010808

Answer B
MER = (Fees + Recovered Expenses) X 100 35. Mr. A chooses Real Estate Investment Trust (REIT) that invests in
Average Fund size real property which provides him with an opportunity to participate
= RM3,723,717 X 100 in property market in a way which is normally impossible for an
235,300,528 individual investor like him as he only has RM 1,000. The
= 1.58% statements below are valid about REIT except:

33. Mr. Abraham invested RM5000 into ABC Growth Fund managed A. All REITs are open-end fund, and the units are not listed
by ABC Unit Trust Management Bhd. Mr. Abraham now owns in the stock market.
A. RM5000 worth of units of entitlement in the ABC Growth B. Returns from property comprise net rental income, plus or
Fund minus any change in the value of the property over the
B. RM5000 worth of shares in ABC Unit Trust Management period.
Bhd C. Units in the listed REIT can be bought and sold through
C. RM5000 worth at direct ownership of investment stockbrokers, and UTC would not normally arrange to
portfolio held by ABC Growth Fund buy or sell units for an investor.
D. RM5000 paid up capital of ABC Unit Trust Management D. The prices at which units in REIT trade on Bursa Saham
Bhd will reflect the returns.

Answer A Answer A
Investors in UTS do not purchase the securities in the portfolio Property, as an asset class, is most suitable for a listed and closed-
security. Ownership of the portfolio is divided into units of end structure since the unit holders can only sell units to other
entitlement and each investor is known as a unit holder. (Chapter investors and, following the initial public offering, UTMC can be
1, page 1-2) certain of having raised sufficient application money to purchase
the nominated real property. (Chapter 1, page 1-12)
34. How many times would an investor receive report/reports in a
financial year? 36. Besides the daily prices, the investors need to consider the
distribution being declared by the fund manager when they
A. 1 time evaluate the performance of the fund. How does this affect the
B. 2 times NAV?
C. 3 times
D. 4 times A. The NAV of the fund is adjusted downward.
B. The NAV of the units of the particular fund remains
Answer B unchanged.
The Guidelines on Unit Trust Fund require each UTS to publish at C. The NAV per units has gone up.
least 2 reports for each financial year – an interim and annual D. The tax rate will decrease when distribution is declared.
report. Each unitholder is to be sent a copy of each report within 2
months after the end of the financial period. (Chapter 3, page 3-9) Answer A

7
Set 2 Questions & Answers 010808

After receiving distribution, the NAV of the fund falls by the 39. Assume that Mr. Z wants to repurchase 20,000 units of his
amount of the distribution. (Chapter 1, page 1-46) investment in Fund XYZ after distribution. Calculate the amount
that he will get from the repurchase.
37. A gradually decreasing MER over a period of several years
indicates that A. RM29,800.00 C. RM30,000.00
B. RM28,000.00 D. RM29,200.00
A. The Fund Manager is reducing the annual management
fee. Answer D
B. The Management Company may be managing its Repurchase Amount = 20,000 units x RM1.46
operating costs efficiently for its fund size. = RM29,200.00
C. The performance of the fund is getting better than
previously. 40. For investor who is unable or unwilling to do research and
D. The performance of the fund is getting worse than before. analyzes investment market on his or her own, UTS is an ideal way
of investing. There are numbers of other significant benefits of
Answer B investing that should be noted such as:
A gradually decreasing MER indicates a UTMC may be managing
its operating costs efficiently for its fund size as MER is a I. Professional Management
summary of the ongoing expenses incurred by the UTS. (Chapter II. Ready access to funds
1, page 1-32) III. Opportunity cost
IV. Investment exposure
V. Diversification
Question 38 & 39
A. I, II, III only
38. A distribution of RM0.04 per unit has been distributed for Fund B. I, II, III and IV only
XYZ, the NAV cum distribution was RM1,500,000 while units in C. I, II, IV and V only
circulation was 1,000,000 units. Calculate the NAV per unit ex D. All of the above
distribution.
Answer C
A. RM1.49 C. RM1.50 Opportunity cost is a disadvantage for UTS. As with any decision,
B. RM1.46 D. RM1.40 an investor who invests in UTS may have produced better returns
by investing in other investment. This represents the “opportunity
Answer B cost” of investing in UTS.
NAV/unit cum distribution = RM1,500,000 (Chapter 1, page 1-3 to 1-5)
1,000,000 units
= RM1.50 41. The major function of the Securities Commission includes
NAV/unit ex distribution = RM1.50–RM0.04
= RM1.46 I. To regulate all matters relating to unit

8
Set 2 Questions & Answers 010808

trust industry. a distribution entitlement for the full period by acquiring units just
II. To ensure that the provisions of securities laws before the ex-D date. Technique A is known as
are complied with. A. Automatic Reinvestment
III. To license and supervise all licensed persons as B. Suspension
may be provided for under any securities law. C. Spread
IV. To act as a custodian of assets of a UTS. D. “Buying “ a distribution

A. I, II, III C. II, III, IV Answer D

B. I, II, IV D. IV only “Buying” a distribution entitlement for the full period means
acquiring units just before the ex Distribution date. However, the
Answer A decision to buy immediately prior to the ex Distribution date has
It is the trustee’s responsibility to safeguard the UTS assets and reduced the investor’s capital, since the UTS prices will fall on the
ensure that they are invested in accordance with the terms of the following day by the amount of the distribution. The investor has,
deed. (Chapter 2, page 2-2) in effect, turned his capital into income and is no better off.
(Chapter 3, page 3-12)
42. At age 25, Unitholder C, an aggressive investor is willing to take
high risk in investing in UTS B that is aggressive UTS. A few 44. Dollar cost Averaging (DCA) can affect the average cost of
years later, Unitholder C is married with young children and he investment. Which statement clearly explains the DCA effect?
feels his personal circumstances has changed and that he prefers to
invest in medium to low risk type of UTS. What is the best A. With fixed amount of money, investor can acquire more
exercise for Unitholder C to do as a result of his changing personal units in a rising market over a short term period.
circumstances? B. With fixed amount of money, investor can
acquire lesser units in a fluctuating market over long term
A. Repurchase Units period.
B. Suspension C. With fixed amount of money, investor can
C. Switch acquire more units at lower price and fewer units at higher
D. Cooling-Off Right price which can reduce the average cost over long term
period.
Answer C D. With fixed amount of money, investor can acquire regular
Switch is a repurchase of units in a UTS (e.g. aggressive UTS) by amount of units at lower price which can reduce the
a UTMC at the request of a unit holder and the immediate average cost over long term period.
reinvestment of the repurchase proceeds as application money into
a different UTS (e.g. medium to low risk UTS) managed by the Answer C
same UTMC. (Chapter 3, page 3-8) By using DCA concept, investor can turn fluctuating prices to their
43. Technique A operates in a way which the period of ownership advantage; especially if prices are moving down, they can purchase
prior to the ex-D date is irrelevant. It is therefore possible to “buy” more units and reduce the average cost of their investment
portfolio. (Chapter 3, page 3-30 to 3-32)

9
Set 2 Questions & Answers 010808

Answer A
45. What is the real value for a single storey house costing RM75,000 The major portion of equity UTS portfolios are shares of listed
today in 6 years’ time with an inflation rate of 4%pa.? companies. (Chapter 1, page 1-13)

A. RM95,874.93 C. RM98,695.93 48. To meet challenges posed by sophisticated customer, UTC must
B. RM93,000.93 D. RM94,898.93 strive to do the following EXCEPT:

Answer D A. Maintain high ethical standard

Compounding factor = (1 + i)n B. Hard sell
= (1 + 4%) 6 C. Acquire professional qualification
= (1 + 0.04) 6 D. Good product knowledge
= 1.265319 Answer B
Value of the house after six years UTC should practice fair dealing (code of ethics) whereby
= RM75, 000 x 1.265319 aggressive and offensive sales practices should be avoided.
= RM94,898.93 (Chapter 4, page 4-27)

46. Which of the below must you NOT say to a potential investor? 49. When was FMUTM formed?

A. Unit trust is as safe as fixed deposits. A. July 1992 C. Aug 1993

B. The market value of your capital may be lower than B. Aug 1992 D. Aug 1994
initially invested.
C. Return in unit trust is not fixed. Answer C
D. You should diversify your portfolio and have some fixed The FMUTM was formed on 7 August 1993 as a company limited
deposits. by guarantee and not having a share capital. (Page viii)

Answer A 50. UTMC uses forward pricing method when computing the selling
UTS, in the long run, can produce returns superior to those from and repurchase prices. Assuming at 9.30am today, the NAV of the
traditional savings account and fixed deposits. The “cost” of these fund was RM180,000,000.00 and units in circulation was
potentially higher returns is, of course, the risk that accompanies 200,000,000. At the end of the day the NAV has increased to
the investment. (Chapter 1, page 1-3) RM190, 000,000.00 and units in circulation unchanged. If a
customer wants to redeem today, how much is the repurchase price
47. Which of the following best describes the equity fund? per unit if no repurchase fee is charged and the repurchase price is
at NAV per unit.
A. Mainly invest in the equity market
B. Mainly invest in bond and equity market A. RM0.95 C. RM1.11
C. Mainly invest in money markets B. RM1.05 D. RM0.90
D. Mainly invest in property markets

10
Set 2 Questions & Answers 010808

Answer A A. Fund management objective that selects securities based

NAV/unit end of day on a specified Stock Exchange Composite Index.
= Total NAV/Number of units B. A standard measurement for comparing investment
= RM190,000,000.00/200,000,000 performance.
= RM0.95 C. Shifting investment portfolio from stocks to fixed-income
securities.
51. Which of the following charges is the fee levied by managers on D. A strategy that entails buying low and selling high.
investment to cover the cost of distributing the unit trust?
Answer B
A. Management Fee C. Trustee Fee Performance of a relevant benchmark such as the KLCI, interest
B. Initial Service Charge D.Repurchase Fee rate, and sometimes the inflation rate and EPF returns are one of
the methods to measure performance. (Chapter 1, page 1-35)
Answer B
Initial service charge is the cost to an investor of investing in, or 54. Miss Amelia spent RM25,000 last year and this year she spent
entering, UTS and it is levied primarily to cover the UTMC costs RM26,125 with the same purchasing power. How much does Miss
of marketing and distributing units, and the cost of opening an Amelia has to spend if she wants to maintain it for the next year?
account in the unit register for a unitholder. (Chapter 1, page 1-29)
A. RM27,301 C. RM27,250
52. Mr Hadi holds 5,000 units of Fund XYZ before unit split of 1:2 B. RM28,001 D. RM30,350
with an investment value of RM10, 000.00. After the unit split
issue, his fund XYZ account will have Answer A
With the formula FV = PV ( 1 + i )n
A. 2,500 units at investment value of RM10, 000 26125 = 25000 ( 1 + i )
B. 5,000 units at investment value of RM15, 000 1.45 =(1+i)
C. 7,500 units at investment value of RM15, 000 0.45 = i
D. 7,500 units at investment value of RM10, 000 i = 4.5%
FV = 25000 ( 1 + 4.5% )2
Answer D = 25000 (1.045) 2
Number of units after unit split issue = 27,301
= 5, 000 X 3
2 55. If an investor secures maximum loan financing for unit trust
= 7,500 units investment, and the amount of investment on his own is RM40,
The effect of splitting units in UTS does not affect the NAV of that 000, what will be his total investment?
UTS, nor does it affect the value of a unit holder’s investment.
(Chapter 1, page 1-44) A. RM19, 701 C. RM81, 212
B. RM59, 701 D. RM121, 212
53. “Investment benchmark” is

11
Set 2 Questions & Answers 010808

Answer D Answer A
Own pocket money = 33% Initial sales charge is the cost for an investor who invests in UTS.
33% = RM40, 000 (Chapter 1, page 1-29)
33 X Amount = RM40,000
100 59. Under whose name the assets and investments of the unit trust
Amount = RM40, 000 X 100 scheme would be held under?
33
= RM121, 212 A. Trustee C. Investor
B. UTMC D. Stock broking house
56. __________ introduces new licensing framework allows capital
market intermediaries to hold one license to carry on any one or Answer A
more regulated activities. All assets of a UTS are held in the trustee’s name for safekeeping.
(Chapter 2, page 2-15)
A. Capital Market and Services Act
B. Securities Commission Act 60. NAV per unit of Fund C is RM0.89, assuming there are 5% service
C. Guidelines on Unit Trust Funds charge and no redemption charge, how much Mr. Kumar is going
D. Securities Industry Act to get if he redeem 5,000 units of his investment in Fund C?

Answer A A. RM4,450 C. RM4,672.50

B. RM4,227.50 D. RM4,500
57. A UTS intends to increase the level of its management fees. Who
must approve this change? Answer A
Repurchase amount
A. The scheme’s officers = 5000 units x RM0.89 = RM4,450
B. The scheme’s management company
C. The scheme’s custodian
D. The scheme’s unit holders

Answer D

58. Azita just bought 5,000 units of ABC Growth Fund from her UTC,
Miss Anne. Who paid the initial sales charge?

A. Azita
B. Anne
C. The fund manager of the ABC Growth Fund
D. The ABC Growth Fund

12