General FAQs

1. Are the Funds' returns guaranteed?
No, returns of funds are not guaranteed as they invest in assets (for example, shares and bonds) which fluctuate in value on a daily basis. The price of the Funds' investments will rise and fall and consequently cause unit prices to rise and fall. Therefore, we cannot guarantee fund returns.

2. How much do I need to invest in the investment funds?
The minimum initial investment for CIMB-Principal Malaysia Equity Fund and CIMB Islamic DALI Equity Theme Fund is SGD 1,000 for the Class SGD or such amounts as the Manager may from time to time decide.

The minimum initial investment for CIMB-Principal Asia Pacific Dynamic Income Fund is SGD 1,000 for the Class SGD and USD 1,000 for the Class USD or such amounts as the Manager may from time to time decide.

3. Is there a Regular Savings Plan?
Yes, the Regular Savings Plan (“RSP”) allows you to make regular monthly investments. For investors who wish to participate in the RSP, the minimum monthly investment is SGD100 for the Class SGD or USD100 for the Class USD with minimum initial investment of SGD1,000 for the Class SGD or USD1,000 for the Class USD.

4. How can an investor make regular investments into the Regular Savings Plan?
Payment for the Regular Savings Plan (“RSP”) will be debited from the Unit Holders' bank account or Supplementary Retirement Scheme (“SRS”) Account (as the case may be). 

For RSP using cash, unit Holders must complete an Interbank GIRO Form authorising the payment for the RSP (or such other form or method as the Manager may determine from time to time) and submit it together with the application form. Unit Holders must complete a Direct Debit Authorisation (“DDA”) Form authorising the payment for the RSP and submit the DDA Form together with the application form. 

For RSP using SRS monies (only applicable for Class SGD), Unit Holders must submit the application form.

5. Is there any exit fee when an investor withdraws his units?
There is no withdrawal fee charged. Redemption proceeds will be directly credited or be paid by cheque within seven (7) business days of receipt and acceptance of the redemption request by the Manager or ten (10) days, whichever is lesser.

6. Can I switch between the Funds?
Units of the Fund may be switched into units of any other funds managed by the Manager or managed by any entity within the Principal Group, which is approved for investment in Singapore (whether such fund is authorised or recognised). Switching may be carried out only between Units of the same currency class, unless otherwise permitted by the Manager.

7. How is the switching of Funds processed?
An investor will redeem out of Fund A at redemption/bid price and come in to Fund B at Fund B's Net Asset Value (NAV) rounded UP to the nearest quarter cent.

8. What prices do we apply in a switch?
Take for example, an investor who switches from Fund A to Fund B. The bid/buying price of Fund A will be used to convert the units to a Ringgit value amount. The NAV of Fund B will then be used to convert the value in Ringgit back to units of Fund B.

9. Why does the unit price fall after a distribution?
Income earned by the Fund during the financial year is accrued in its unit’s price until the end of the distribution period. When an income distribution is declared, any interest income and realized capital profits are paid to unit holders. Consequently, the Fund's net asset value per unit, and therefore the application (offer) and withdrawal (bid) prices will tend to fall by approximately the same amount as the income distribution.

10. How does the distribution payment works?
Investor should note that distribution payments, if any, will be made in the respective currency for that Class. Investors who subscribe for Units through a distributor should check with their distributor regarding such distribution payments, if any.

General Risks of Investing in Unit Trust Funds

Any investment carries with it an element of risk. Therefore, prior to making an investment, prospective investors should consider the following risk factors.

Returns Not Guaranteed
Investors should be aware that by investing in a unit trust fund, there is no guarantee of any income distribution, returns or capital appreciation.

General Market Risk
Any purchase of securities will involve some element of market risk. Hence, a unit trust fund may be prone to changing market conditions as a result of:

  • global, regional or national economic developments;
  • governmental policies or political conditions;
  • development in regulatory framework, law and legal issues
  • general movements in interest rates;
  • broad investor sentiment; and
  • external shocks (e.g. natural disasters, war and etc.)

In addition, the following risk factors should also be considered:

Security specific risk
There are many specific risks which apply to the individual security. Some examples include the possibility of a company defaulting on the repayment of the coupon and/or principal of its debentures, and the implications of a company’s credit rating being downgraded.

Liquidity risk
Liquidity risk can be defined as the ease with which a security can be sold at or near its fair value depending on the volume traded in the market.

Inflation risk
Inflation rate risk is the risk of potential loss in the purchasing power of your investment due to a general increase of consumer prices.

Loan Financing Risk
If a loan is obtained to finance the purchases of units of any unit trust fund, investors will need to understand that:

  • Borrowing increases the possibility for gains as well as losses;
  • If the value of the investment falls below a certain level, investors may be asked by the financial institution to top up the collateral or reduce the outstanding loan amount to the required level;
  • The borrowing cost may vary over time depending on the fluctuations in interest rates;
  • The risks of using loan financing in light of investors’ investment objectives, attitude towards risk and financial circumstances should be carefully assessed.

Risk of Non-Compliance
This refers to the current and prospective risk to the unit trust fund and the investors’ interest arising from non-conformance with laws, rules, regulations, prescribed practices and internal policies and procedures by the manager.

Manager’s Risk
The performance of any unit trust funds is dependent amongst others on the experience, knowledge, expertise and investment techniques/process adopted by the manager and any lack of the above would have an adverse impact on the fund’s performance thereby working to the detriment of Unit holders.