Set 2 ENGLISH Question

1. Arrange accordingly from the highest risk fund to the lowest risk fund.
i.
ii.
iii.
iv.

Equity Fund
Money Market Fund
Balance Fund
Hedge Fund
A. i, ii, iii, iv
B. iv, i, iii, ii

C. iii, iv, ii, i

D. i, iv, iii, ii

2. The unit trust fund that are available in the market could be designed to meet the
following investor's requirement:
A. Long term saving
B. Children's Education

C. Retirement Fund
D. All of the above

For queation 3 & 4, please refer to the data given below

Month
April
May
June

NAV/unit
RM0.50
RM0.60
RM0.70

3. Mr. Dave invested regularly for the past 3 months. His total investment is RM4,500.
What is the average price of his investment?
A. RM0.60
B. RM0.59

C. RM0.43
D. Rm0.56

4. How many unit Mr. Dave had by the end May?

A. 5,500
B. 7,643

C. 4,500
D. 4,000

5. A 20 year old employee, who belong to Stage 1 of the client type, has very little saving
but possesses low commitments and is very skeptical in investing unit trust. However he
has right toleration for risk. Which of the following should he invest in?
A. Growth Fund
B. Hedge Fund

C. Income Fund
D. Balanced Fund

Set 2 ENGLISH Question

6. Capital Market Masterplan introduced a host of recommendations to further spur the
Islamic capital market. Parts of the efforts were to enhance awareness of the Malaysia
Islamic Capital Market to domestic and international levels. Which recommendation does
this belong to?
A. Recommendation 77
B. Recommendation 66
C. Recommendation 65
D. Recommendation 73
7. Kumpulan Guthrie Bhd launched its first international corporate bond in
A. 2000
B. 1999
C. 1997
D. 2002
8. Which of the following best describes a close ended fund?
A. Units are not quoted in an exchange.
B. Prices are determined by the market forces of demand and supply in Bursa
Malaysia.
C. Prices remain unchanged throughout trading day.
D. Forward pricing is practiced.
9. Which of the following propositions a UTC should not practice?
A. " The market is going up, you should come in now, capital appreciation is
assured".
B. "If you can't invest it doesn't matter, you can always loan from the bank".
C. " Invest in equity fund now, you stand a chance to win a free welcome gift".
D. All of the above
10. Which of the following has the highest volatility of price?
A. Bond Fund
B. Aggressive Growth Fund
C. Money Market Fund
D. Income Fund
11. Rahim and Kajai invested RM64,000. Rahim receive returns of 8.5% per annum. As
the years went by, both doubled their investment. Kajai received his returns faster by
1.27 years. What is Kajai's rate of return?
A. 8.5%
B. 12%

C. 10%
D. 17%

Set 2 ENGLISH Question

12. What do you understand about 1:2 unit split?
A. The unit in circulation will be doubled
B. The prices will be doubled
C. The prices will proportionally decreased
D. All the answer are incorrect
13. Which statement is correct?
Fund X
80% Equity
20% Fixed Income

Fund Y
20% Equity
80% Fixed Income

A. if the market falls, X will be more negatively affected than Y

B. If the market rises, both X & Y will be negatively affected.
C. If the market falls, X will be more positively affected than Y.
D. None of the above is correct
14. Mr A wants to invest RM150,000. What is the maximum amount can he borrow from
the financial institution?
A. RM200,000
B. RM66,000

C. RM100,500
D. RM120,000

15. The unit holders rights in UTS include the following except:
A. To receive UTS annual and interim reports.
B. To call meetings for unit holders.
C. To receive distribution from UTS
D. To change the investment portfolio.
16. Tax rate = 20%
Inflation rate = 5%
Rate of return = 10%
Please calculate the effective rate of return after tax & inflation.
A. 3%
B. 5%

C. 10%
D. 20%

17. When comparing the performance of a fund over a period of time, a decreasing MER
will indicate?
A. The UTMC is not managing the total fees and expenses well.
B. The UTMC is managing the total fees and expenses well.
C. The NAV of the fund is rising.
D. The NAV of the fund is falling.
3

Set 2 ENGLISH Question

18. One of your friends tells you, "By the time I retire in year 2020, I believe KLCI will
be many times what it is today. I am happy with that. Give me a fund that can best
deliver the same result". What would you recommend to him?
A. Buy a growth fund because it can give him a return better than KLCI by year
2020.
B. Buy a balanced fund because its investment return are less volatile than KLCI.
C. Buy an index trading fund using KLCI as benchmark.
D. For such a long investment horizon, don't worry buy any fund.
19. What is the meaning of liquid advantage offered by unit trust scheme?
A. As liquid as cash
B. Able to purchase or redeem on any business day.
C. Buys more unit trust on rising and less on falling market.
D. None of the above.
20. Dollar cost average is:
A. Buy low sell high
B. Buy high sell now
C. Regular investment at a fixed amount of money
D. Buy fixed unit every time
21. Mr. Ahmad made his first investment at the price of RM0.20. He puts in more money
on the second investment and got 10,000 units. He made redemption a month after
that and receives RM15,000 for RM0.25 per unit. How many did he invest at his first
investment?
A. RM15,000
B. RM10,000

C. RM5,000
D. RM20,000

22. What is the purpose of UT performance table?

A. For SC to regulate the fund.
B. For FMUTM to regulate the funds.
C. Segregation of funds into different categories according to the fund size.
D. To provide investors with the same means to monitor and evaluate the
performance of the fund.
23. Islamic UT invest only in halal counter such as
A. Conventional banking
B. Telecommunications
C. Gambling
D. Alcohol

Set 2 ENGLISH Question

24. Which of the below describes open ended funds?
A. The price fluctuates within the day.
B. The fund manager has to buy back from the investor.
C. Transactions are through stock broker.
D. They are property trust.
Question 25 & 26 are to be answered based on the following
NAV cum- distribution of Funs A is RM150,000,000. Unit in circulation is
100,000,000. The fund declared distribution RM0.10 per unit, and the fund manager
is charging 5% for service charge.
25. What is the NAV per unit of Fund A ex-distribution?
A. RM1.50
B. RM1.45

C. RM1.40
D. RM1.38

26. What is the NAV per unit of Fund A cum-D?

A. RM1.50
B. RM1.45

C. RM1.40
D. RM1.38

27. This fund invests mostly in stocks in listed companies, which emphasizes more in
capital growth than fixed income and distributions.
A. Equity Fund
B. Balance Fund
C. Bond Fund
D. Money Market Fund
Question 28, 29 & 30
Lump sum investment
Initial entry cost
On-going management fee
Rate of Return

: RM100,000
: 6.5%
: 1.4%
: 11%

28. What is the return of investment after 10 years?

A. RM233,839.11
B. RM234,831.27

C. RM233,547.23
D. RM234,098.95

Set 2 ENGLISH Question

29. Assume that the initial entry cost decreased to 6%. What is the value of the
investment after 10 years?
A. RM233,839.11
B. RM235,089.59

C. RM235,938.96
D. RM234,098.95

30. How long does it take to increase the investment amount to RM200,000 with the
effective
rate of return from question 28?
A. 4.8 years
B. 6.3 years

C. 7.5 years
D. 7.2 years

31. The published NAV in newspaper today is RM0.65. The price at the end of the day is
RM0.66. If Mr. Eddie invested RM10,000 today; how many units is he getting if
forward pricing is applied. (Assume the 5% of service charge is applied)
A. 14,430.02 units
B. 16,666.67 units

C. 15384.62 units
D. 15,151.52 units

32. In Annual Report of ABC Millennium Fund, expenses incurred by the fund during the
financial year:
Annual Management Fee
: RM3,528,673
Trustee
: RM150,326
Auditor's Remuneration
: RM16,300
Administration expenses
: RM28,418
Average Fund Size
: RM235,300,528
What is the MER of this fund?
A. 1.50%
B. 1.58%

C. 0.07%
D. 0.01%

33. Mr. Abraham invested RM5000 into ABC Growth Fund managed by ABC Unit Trust
Management Bhd. Mr. Abraham now owns
A. RM5000 worth of units of entitlement in the ABC Growth Fund
B. RM5000 worth of shares in ABC Unit Trust Management Bhd
C. RM5000 worth at direct ownership of investment portfolio held by ABC
Growth Fund
D. RM5000 paid up capital of ABC Unit Trust Management Bhd
34. How many times would an investor receive report/reports in a financial year?
A. 1 time
B. 2 time
C. 3 time

Set 2 ENGLISH Question

D. 4 time
35. Mr. A chooses Real Estate Investment Trust (REIT) that invests in real property
which provides him with an opportunity to participate in property market in a way
which is normally impossible for an individual investor like him as he only has
RM1,000. The statements below are valid about REIT except:
A. All REITs are open-end fund, and the units are not listed in the stock market.
B. Returns from property comprise net rental income, plus or minus any change in
the value of the property over the period.
C. Units in the listed REIT can be bought and sold through stockbrokers, and
UTC would not normally arrange to buy or sell units for an investor.
D. The prices at which units in REIT trade on Bursa Saham will reflect the returns.
36. Besides the daily prices, the investors need to consider the distribution being declared
by the fund manager when they evaluate the performance of the fund. How does this
affect the NAV?
A. The NAV of the fund is adjusted downward.
B. The NAV of the unit of the particular fund remains unchanged.
C. The NAV per units has gone up.
D. The tax rate will decrease when distribution is declared.
37. A gradually decreasing MER over a period of several years indicates that
A. The Fund Manager is reducing the annual management fee.
B. The Management Company may be managing its operating costs efficiently for
its fund size.
C. The performance of the fund is getting better than previously.
D. The performance of the fund is getting worse than before.
Question 38 & 39
38. A distribution of RM0.04 per unit has been distributed for Fund XYZ, the NAV cum
distribution was RM1,500,000 while units in circulation was RM1,000,000 units.
Calculate the NAV per unit ex distribution.
A. RM1.49
B. RM1.46

C. RM1.50
D. RM1.40

39. Assume that Mr. Z wants to repurchase 20,000 units of his investment in Fund XYZ
after distribution. Calculate the amount that he will get from the repurchase
A. RM29,800
B. RM28,000

C. RM30,000
D. RM29,200

Set 2 ENGLISH Question

40. For investor who is unable or unwilling to do research and analyzes investment
market on his or her own, UTS is an idea way of investing. There are numbers of
other significant benefits of investing that should be noted such as:
I.
II.
III.
IV.
V.

Professional Management
Ready access to funds
Opportunity cost
Investment exposure
Diversification

A. I, II, III only

B. I, II, III and IV only
C. I, II, IV and V only
D. All of the above
41. The major function of the Securities Commission includes
I.
II.
III.
IV.

To regulate all matters relating to unit trust industry.

To ensure that the provisions of securities laws are complied with.
To license and supervise all licensed persons as may be provided
for under any securities law.
To act as a custodian of assets of UTS

A. I, II, III
B. I, II. IV

C. II, III, IV
D. IV only

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 years later, Unitholder C is married
with young children and he feels his personal circumstances has changed and that he
prefers to invest in medium to low risk type of UTS. What is the best exercise for
Unitholder C to do as a result of his changing personal circumstances?
A. Repurchase Units
B. Suspension
C. Switch
D. Cooling-Off Right
43. Technique A operates in a way which the period of ownership prior to the ex-D date
is irrelevant. it is therefore possible to 'buy' a distribution entitlement for the full
period by acquiring units just before the ex-D date. Technique A is known as
A. Automatic Reinvestment
B. Suspension
C. Spread
D. " Buying' a distribution

Set 2 ENGLISH Question

44. Dollar coat Averaging (DCA) can affect the average cost of investment. Which
statement clearly explains the DCA effect?
A. With fixed amount of money, investor can acquire more units in a rising
market over a short term period.
B. With fixed amount of money, investor can acquire lesser units in fluctuating
market over long term period.
C. With fixed amount of money, investor can acquire more units at lower price
and fewer units at higher price which can reduce the average cost over long
term period.
D. With fixed amount of money, investor can acquire regular amount of units at
lower price which can reduce the average cost over long term period.
45. What is the real value for single storey house costing RM75,000 today in 6 years'
time with an inflation rate of 4%
A. RM95,874.93
B. RM93,000.93

C. RM98,695.93
D. RM94,898.93

46. Which of the below must you NOT say to a potential investor?
A. Unit trust is safe a fixed deposits.
B. The market value of your capital may be lower than initially invested.
C. Return in unit trust is not fixed
D. You should diversify your portfolio and have some fixed deposits.
47. Which of the following best describes the equity fund?
A. Mainly invest in the equity market
B. Mainly invest in bond and equity market
C. Mainly invest in money markets
D. Mainly invest in property markets
48. To meet challenges posed by sophisticated customer, UTC must strive to do
following EXCEPT
A. Maintain high ethical standard
B. Hard sell
C. Acquire professional qualification
D. Good product knowledge
49. When was FMUTM formed?
A. July 1992
B. Aug 1992

C. Aug 1993
D. Aug 1994

Set 2 ENGLISH Question

50. UTMC uses forward pricing method when computing the selling and repurchase
prices. Assuming at 9.30am today, the NAV of the fund was RM180,000,000.00 and
units in circulation was 200,000,000. At the end of the day the NAV has increased to
RM190,000,000.00 and units in circulation unchanged. If a customer wants to redeem
today, how much is the repurchase price per unit if no repurchase fee is charged and
the repurchase price is at NAV per unit.
A. RM0.95
B. RM1.05

C. RM1.11
D. RM0.90

51. Which of the following charges is the fee levied by managers on investment to cover
the cost of distributing the unit trust?
A. Management Fee
B. Initial Service Charge

C. Trustee Fee
D. Repurchase Fee

52. Mr. Hadi holds 5,000 units of Fund XYZ before unit split of 1:2 with an investment
value of RM10,000.00. After the unit split issue, his fund XYZ account will have
A. 2,500 units at investment value of RM10,000
B. 5,000 units at investment value of RM15,000
C. 7,500 units at investment value of RM15,000
D. 7,500 units at investment value of RM10,000
53. " Investment benchmark" is
A. Fund management objective that selects securities based on a specifies Stock
Exchange Composite Index.
B. A standard measurement for comparing investment performance.
C. Shifting investment portfolio from stocks to fixed-income securities.
D. A strategy that entails buying low and selling high.
54. Miss Amelia spent RM25,000 last year and this year she spent RM26,125 with the
same purchasing power. How much does Miss Amelia has spend if she wants to
maintain it for the next year?
A. RM27,301
B. RM28,001

C. RM27,250
D. RM30,350

55. If an investor secures maximum loan financing for unit trust investment, and the
amount of investment on his own is RM40,000. What will be his total investment?
A. RM19,701
B. RM59,701

C. RM81,212
D. RM121,212

10

Set 2 ENGLISH Question

56. _____________ introduces new licensing framework allows capital market

intermediaries to hold one license to carry on any one or more regulated activities.
A. Capital Market and Services Act
B. Securities Commission Act
C. Guideline on Unit Trust Funds
D. Securities Industry Act
57. A UTS intend to increase the level of its management fees. Who must approve this
change?
A. The scheme's officers
B. The scheme's management company
C. The scheme's custodian
D. The scheme's unit holders
58. Azita just brought 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
59. Under whose name the assets and investments of the unit trust scheme would be held
under?
A. Trustee
B. UTMC

C. Investor
D. Stock broking house

60. NAV per unit of Fund C is RM0.89, assuming there are 5% service charge and no
redemption charge, how much Mr. Kumar is going to get if he redeem 5,000 units of
his investment in Fund C?
A. RM4,450
B. RM4,227.50

C. RM4,672.50
D. RM4,500

11

Set 2 ENGLISH Question

Set 2 Answer
1.

Answer B
Hedge Fund is the most risky, followed by Equity Fund, Balanced Fund (which
has equity exposure) and Money Market Fund.

2.

Answer D
Unit trust is medium to long term investment tool to meet investor's long term
objectives.
For question 3 & 4, please refer to the data given below
Month
April
May
June

NAV/unit
RM0.50
RM0.60
RM0.70

3.

Answer B
Total Investment = RM4,500
Total Unit = (Rm1,500/RM0.50) + (RM1,500/RM0.60) + (RM1,500/RM0.70)
= 3000 + 2500 + 2142.88
=7642.88
Average price of his investment
= Total investment / Total units
= RM4,500 / 7642.88
=RM0.59

4.

Answer A
Total units for 2 months (April and May)
= (RM1,500/RM0.50) + (RM1,500/RM0.60)
= 3000 units + 2500 units
= 5500 units

5.

Answer A
He or she can start building a small nest egg by investing into growth oriented
UTS. Perhaps some additional risk can be taken by investing in more specialized
and aggressive UTS. He or she may be able to tolerate higher volatility in
investment returns over the short-term, as the focus will be on returns over the
long period. (Chapter 5, page 5-7)

6.

Answer D
(Chapter 6, page 6-3)

7.

Answer D
(Chapter 6, page 6-4)
12

Set 2 ENGLISH Question

8.

Answer B
The price of any listed securities is determined by buyers and sellers in the market
(Chapter 1, page 1-12)

9.

Answer D

10.

Answer B
Equity UTS labeled "aggressive growth" generally invest in companies with
higher capital growth potential, but with associated higher risk.
(Chapter 1, page 1-13)

11.

Answer C
Use Rule of 72
Rahim received his returns in 8,47 years (72/8.5)
Kajai = 8.47 years - 1.27 years = 7.2 years
Kajai's return = 72/7.2 = 10%

12.

Answer D

13.

Answer A
The performance of most equities is closely linked to the market performance. A
rising share market will normally result in an increase in the value of units in
equity UTS, and vice versa. (Chapter 1, page 1-13)

14.

Answer C
Maximum amount = RM150,000 X 67% = RM100,500

15.

Answer D
Unit holders do not have rights to decide on the investment portfolio - loss of
control. (Chapter 1, page 1-5). Unitholder's rights. (Chapter 1, page 1-27)

16.

Answer A
Return after tax
Rate of return - (Rate of Return X Tax Rate)
= 10% - (10% X 20%)
= 10% - 2%
= 8%
Effective rate of return
Return after tax - inflation rate
= 8% - 5%
= 3%

13

Set 2 ENGLISH Question

17.

Answer B
A gradually decreasing MER over a period of several years indicates that a
UTMC may be managing its operating costs efficiently for its fund size.
(Chapter 1, page 1-32)

18.

Answer C

19.

Answer B
One of the benefits of UTS is ready access to funds, the investment can easily be
sold within a short period time. UTS provide this benefit, as units can be bought
and sold readily through UTMC, IUTA and UTC.

20.

Answer C
The concept refers to the systematic and regular investment of a fixed amount of
money, irrespective of the price level of the investment at the time the investment
is made. (Chapter 3, page 3-30)

21.

Answer B
Number of units held during redemption
RM15,000/RM0.25
= 60,000 units
Second investment
= 10,000 units
First investment
= 60,000 units - 10,000 units
= 50,000 units
Amount Invested
= 50,000 units X RM0.20 = RM10,000

22.

Answer D
UTS performance tables published by research houses endorsed by FMUTM can
be a useful tool for monitoring investment performance. (Chapter 1, page 1-37)

23.

Answer B
(Chapter 6, page 6-13)

24.

Answer B
Investor's sales and repurchases of units in an open ended fund are transacted
daily within UTMC, often with the assistance of UTC. (Chapter 1, page 1-12)

25.

Answer C
NAV/unit cum-D

NAV per unit ex-D

= NAV/unit in circulation
= RM150,000,000/100,000,000
= RM1.50
= NAV/unit cum-D-distribution
= RM1.50 - RM0.10
= Rm1.40

14

Set 2 ENGLISH Question

26.

27.

Answer A
NAV/unit cum-D

Answer A
The major portion of equity UTS portfolio are shares of listed companies.
(Chapter 1, page 1-13)
Question 28, 29 & 30
Lump sum investment
Initial entry cost
On-going management fee
Rate of Return

28.

= NAV/units in circulation
= RM150,000,000/100,000,000
= RM1.50

Answer B
Working capital
Effective Rate of Return
With the formula FV

: RM100,000
: 6.5%
: 1.4%
: 11%
= RM100,000/(1+6.5%)
= RM100,000/(1.065)
= RM93,896.71
= 11% - 1.4%
= 9.6%
= PV (1 + i)
= RM93,896.71 (1+9.6%)
= RM93,896.71 (1.096)
= RM234,831.27

29.

30.

31.

Answer C
Working capital

= RM100,000/1+6%
= RM100,000/1.06
= RM94,339.62

Effective Rate of Return

= 11% - 1.4%
= 9.6%

With the formula FV

= PV (1 + i)
= RM 94,339.62 (1+9.6%) 10
= RM 94,339.62 (1.096) 10
= RM 235,938.96

Answer C
Rule of 72
Answer A
Amount invested

= 72/9.6
= 7.5 years
= RM 10,000
15

Set 2 ENGLISH Question

Working Money
Total units
32.

Answer B
MER

= RM 10,000/(1+5%)
= RM 9523.81
= RM 9523.81 / RM0.66
= 14,430.02 units

= (Fees+Recovered Expenses)X 100

Average Fund Size
= RM3,723,717
235,300,528

X 100

= 1.58%
33.

Answer A
Investors in UTS do not purchase the securities in the portfolio security.
Ownership of the portfolio is divided into units of entitlement and each investor is
known as a unit holder. (Chapter 1, page 1-2)

34.

Answer B
The Guidelines on Unit Trust Fund require each UTS to publish at least 2 reports
for each financial year - an interim and annual report. Each unitholders is to be
sent a copy of each report within 2 months after the end of the financial period.
(Chapter 3, page 3-9)

35.

Answer A
Property, as an asset class, is most suitable for a listed and closed-end structure
since the unit holders can only sell units to other investors and, following the
initial public offering, UTMC can be certain of having raised sufficient
application money to purchase the nominated real property.
(Chapter 1, page 1-12)

36.

Answer A
After receiving distribution, the NAV of the fund falls by the amount of the
distribution. (Chapter 1, page 1-46)

37.

Answer B
A gradually decreasing MER indicates a UTMC may be managing its operating
cost efficiently for its fund size as MER is a summary of the ongoing expenses
incurred by the UTS. (Chapter 1, page 1-32)

16

Set 2 ENGLISH Question

Question 38 & 39
38.

Answer B
NAV/unit cum distribution

NAV/unit ex distribution
39.

Answer D
Repurchase Amount

= RM1,500,000
1,000,000 units
= RM1.50
= RM1.50 - RM0.40
= RM 1.46
= 20,000 units X RM1.46
= RM 29,200.00

40.

Answer C
Opportunity cost is a disadvantage for UTS. As with any decision, an investor
who invests in UTS may have produced better returns by investing in other
investment. This represents the "opportunity cost" of investing in UTS.
(Chapter 1, page 1-3 to 1-5)

41.

Answer A
It is the trustee's responsibility to safeguard the UTS assets and ensure that they
are invested in accordance with the terms of the deed. (Chapter 2, page 2-2)

42.

Answer C
Switch is a repurchase of units in a UTS (e.g. aggressive UTS) by a UTMC at the
request of a unit holder and the immediate reinvestment of the repurchase
proceeds as application money into a different UTS (e.g. medium to low risk UTS)
managed by the same UTMC. (Chapter 3, page 3-8)

43.

Answer D
"Buying" a distribution entitlement for the full period means acquiring units just
before the ex Distribution date. However, the decision to buy immediately prior
to the ex Distribution date has reduced the investor's capital, since the UTS prices
will fall on the following day by the amount of the distribution. The investor has,
in effect, turned his capital into income and is no better off.
(Chapter 3, page 3-12)

44.

Answer C
By using DCA concept, investor can turn fluctuating prices to their advantage;
especially if prices are moving down, they can purchase more units and reduce the
average cost of their investment portfolio. (Chapter 3, page 3-30 to 3-32)

17

Set 2 ENGLISH Question

45.

Answer D
Compounding factor

= (1+i)
= (1 + 4%) 6
= (1 + 0.04%) 6
= 1.265319

Value of the house after six years

= RM 75,000 X 1.265319
= RM 94,898.93
46.

Answer A
UTS, in the long run, can produce returns superior to those from traditional
savings account and fixed deposits. The "cost" of these potentially higher return is,
of course, the risk that accompanies the investment. (Chapter 1, page 1-3)

47.

Answer A
The major portion of equity UTS portfolios are shares of listed companies.
(Chapter 1, page 1-13)

48.

Answer B
UTC should practice fair dealing (code of ethics) whereby aggressive and
offensive sales practice should be avoided. (Chapter 4, page 4-27)

49.

Answer C
The FMUTM was formed on 7 August 1993 as a company limited by guarantee
and not having a share capital. (Page viii)

50.

Answer A
NAV/unit end of day
= Total NAV/Number of units
= RM190,000,000.00/200,000,000
= RM0.95

51.

Answer B
Initial service charge is the cost to an investor of investing in, or entering, UTS
and it is levied primarily to cover the UTMC costs of marketing and distributing
units, and the cost of opening an account in the unit register for a unitholder.
(Chapter 1, page 1-29)

52.

Answer D
Number of units after unit split issue
= 5,000 X /2
= 7,500 units
The effect of splitting units in UTS does not affect the NAV of that UTS, nor does
it effect the value of a unit holder's investment. (Chapter 1, page 1-44)

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Set 2 ENGLISH Question

53.

Answer B
Performance of relevant benchmark such as the KLCI, interest rate, and sometimes
the inflation rate and EPF returns are one of the methods to measure performance.
(Chapter 1, page 1-35)

54.

Answer A
With the formula

FV = PV (1 + i)
26125 = 25000 (1 + i)
1.45 = (1 + i)
0.45 = i
i
= 4.5%
FV

55.

Answer D
Own pocket money
33%
33
100
Amount

= 25000 (1+ 4.5%) 2

= 25000 (1.045) 2
= 27,301
= 33%
= RM40,000
= RM40,000
= RM40,000 X 100
33
= 121,212

56.

Answer A

57.

Answer D

58.

Answer A
Initial sales charge is the cost for an investor who invests in UTS.
(Chapter 1, page 1-29)

59.

Answer A
All assets od a UTS are held in the trustee's name for safekeeping.
(Chapter 2, page 2-15)

60.

Answer A
Repurchase amount

= 5000 units X RM0.89

= RM4,450

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