Unit Trusts

Grow your wealth
with greater
confidence.
What is
Unit Trust?
Grow your
Foreign Currency
Ways to
Invest

What is Unit Trust?

Unit Trust is a type of investment that allows people with the same objective to pool their money together and invest.

Unit Trust Benefits

Liquidity
Buy and sell easily, on any business day.
Exposure
Get investment exposure to different asset classes such as equities, bonds and properties.
Diversification
Hold a diversified portfolio of assets with minimal investment amount.
Accessibility
Access assets that are not within the reach of general investment public
e.g. Apple/Google stocks and shares.
Peace of Mind
Rest assured, as your money is managed by professional fund managers.

What should you look out for before investing?

Financial Performance
  • Check the fund’s past performance through various sources.
  • Past performance is neither a guarantee nor indicative of future performance.
Investment Objective
  • Each Unit Trust has a different investment strategy based on its investment objectives.
  • Some focus on capital growth whereas others focus on distributing periodic dividends.

Useful Information

Only buy through licensed consultants such as:

  • Unit Trust Consultants (UTC), Institutional Unit Trust Advisers (IUTA), Corporate Unit Trust Advisers (CUTA), Unit Trust Management Company (UTMC).
  • Each licensed consultant has a different sales charge.

Fees and charges:

  • All Unit Trust investments will incur a sales charge.
  • If you sell your units in a Unit Trust fund and then purchase units in another fund, you may have to pay a sales charge. However, if you switch from one fund to another fund that is managed by the same UTMC, you may not have to pay any sales charge.

Unit Trust funds carry risk:

  • Different types of Unit Trust funds carry different levels of risk. Some are higher in risk than others. Make sure you ask about the risks before investing in a fund.

Rights as a first time investor:

  • You have the right to apply for and receive a refund for every Unit that you have paid for within six (6) Business Days from the date we received your purchase application. You will be refunded for every Unit held based on the NAV per Unit and the Sales Charge, on the day those Units were first purchased and you will be refunded within ten (10) days from the receipt of the cooling-off application. Please note that the cooling-off right is applicable to you if you are an individual investor and investing with OCBC for the first time.

The Bank will represent you as a unit holder:

  • Your UTC may represent a company that uses a nominee system and your rights as a unit holder may be limited if you invest in Unit Trust funds through it.
  • Unit Trusts are not endorsed or guaranteed by and do not constitute as obligations of OCBC Bank (M) Berhad.

Grow your Foreign Currency for different life stages

While we offer a wide range of MYR funds you can choose from, you may also have a need for various foreign currencies. We have just the right thing for you via our foreign currency Unit Trust funds. Whether it’s for your child’s education, travelling, studying abroad or as an investment, there is always a need for the right foreign currency at different life stages. Through the Unit Trust foreign currency classes, you can now invest directly instead of converting your existing MYR to invest and avoid the potential forex losses.
Overseas investment
Grow your overseas investment portfolio without hassle.
Travel
Globetrot and travel around the world to see new places.
Overseas retirement
Live your golden years the best possible way.
Children’s education
Give your children a good head start in life.

Unit Trust Currencies Availability

MYR
USD
AUD
SGD
GBP
CNY
EUR

Benefits of foreign currency Unit Trust investment

Potential gain
If you invest in two (2) different foreign currency Unit Trust funds, any loss by one currency in the foreign currency Unit Trust fund could potentially be offset by gains, if any, in the other foreign currency Unit Trust fund.
Diversification
Investment in foreign currency Unit Trust funds offers a good diversification within the same asset class. While the investment in Fund A denominated in MYR may be loss making, your same investment in Fund A in foreign currency, may potentially deliver better returns.
Low correlation
Investing in multiple foreign currencies Unit Trust funds may otentially provide positive risk-adjusted returns due to low correlation with each other and other forms of investment.

Potential risks

Market risk

An investment may lose value because of a general decline in financial markets which could be due to economic, political instability and/or other factors which may lead to a decline in the fund’s net asset value.

Fund management risk

This risk refers to the day-to-day management of the Unit Trust fund by the fund manager which will impact the performance of the Unit Trust fund. For example, investment decisions undertaken by the fund manager as a result of an incorrect view of the market or any non-compliance with internal policies, investment mandate, the deed, relevant law or guidelines due to factors such as human error, fraud, dishonesty or weaknesses in operational process and systems, may adversely affect the performance of the Unit Trust Fund.

Liquidity risk

Liquidity risk refers to two scenarios. The first is where an investment cannot be sold due to unavailability of a buyer for that investment. The second scenario exists where the investment, by its nature, is thinly traded. This will have the effect of causing the investment to be sold below its fair value which would adversely affect the NAV of the Unit Trust fund.

Country risk

Investments of the Unit Trust fund in any country may be affected by changes in the economic and political climate, restriction on currency repatriation or other developments in the law or regulations of the countries in which the Unit Trust fund invests. For example, the deteriorating economic condition of such countries may adversely affect the value of the investments undertaken by the Unit Trust fund in those affected countries. This in turn may cause the NAV of the Unit Trust fund or prices to fall.

Fiscal policy risk

Government’s spending and borrowing will affect its currency depending on what the country’s policies are in comparison. This in turn may affect the currency in which the Unit Trust fund is denominated.

Monetary policy risk

Central banks may stimulate economy or reduce inflation by lowering or raising interest rates and this affects the currency in which the Unit Trust fund is denominated.

Foreign exchange risk (applicable for foreign currency Unit Trust)

Investment value may change due to changes in currency exchange rates in which the foreign currency Unit Trust fund is denominated.

Ways to Invest

Disciplined approach
Invest regularly and even out market risks in the long run.
Lump sum investment
Make a one-time investment in a Unit Trust fund and take immediate advantage of the underlying market.
With our wide range of product offerings, you may wonder which fund best suits your investment needs.

Tell us more about your risk appetite and financial needs through our comprehensive Financial Needs Analysis.
Talk to your Relationship Manager and let us be of service and grow together with you.

Ways to apply

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Disclaimer:
Unit Trust investments are not bank deposits and are not obligations of or guaranteed or insured by OCBC Bank (Malaysia) Berhad.

Unit Trust investments are not guaranteed and are subject to investment risk unless otherwise specified. The investment risk includes general risks as described in the prospectuses for Unit Trust investment funds (“Prospectuses”) and specific risks which may be different for each Unit Trust investment. Description of specific risks and general risks are published in the Prospectuses. With respect to Unit Trust investment, past performance is not indicative of future results; the net asset value can go up or down. Investors should also note that the net asset value per unit and distributions payable, if any, may go down as well as up.

Where a unit split/distribution is declared, investors are advised that following the issue of additional units/distribution, the NAV per unit will be reduced from pre-unit split NAV/cum-distribution NAV to post-unit split NAV/ex-distribution NAV; and where a unit split is declared, investors should be highlighted of the fact that the value of their investment in Malaysian ringgit or the respective foreign currency will remain unchanged after the distribution of the additional units.

All information presented is subject to change without notice. OCBC Bank shall not be responsible or liable for any loss or damage whatsoever arising directly or indirectly howsoever in connection with or as a result of any person acting on any information provided herein. The contents hereof may not be reproduced or disseminated in whole or in part without OCBC Bank’s written consent.

Product Risk Rating and Suitability Determination Matrix:
Risk Rating What does this rating mean to your principal amount? Suitable for Risk Profiles
Moderate *Partial loss of full principal investment amount possible, total loss unlikely. Balanced
Growth
Aggressive
High Client may suffer **substantial or 100% loss of principal investment amount. Growth
Aggressive
Note:
*‘Partial loss’ means the loss suffered by the investor can be up to 15% of the original investment principal
**‘Substantial loss’ means the loss suffered by the investor can be more than 15% of the investment principal