UT Presentation
Transcript: 2 5 6 1 4 NAVIGATOR UNIT TRUST 7 8 3 Unit Trusts or otherwise known as the Collective Investment Schemes (CIS) pools money from a large group of investors and invest them in a portfolio of assets The money is managed by a fund manager Unit trusts are considered to be medium to long term investments UNIT TRUST WHAT IS UNIT TRUST? WHY INVEST IN UNIT TRUST? WHY INVEST IN UNIT TRUST? A Invest in a diversified range of assets – risks will be spread over the assets in the fund. If any one of the asset in the fund is performing poorly, it will not have any significant impact on the fund as a whole. B Allows investing in a diversifed portfolio of assets with a smaller amount of money. Typically, it will cost more if one is to purchase each asset in the fund individually (mitigation of risk) C Unit Trusts VS ILPs: NAV vs BOP (Units will be deducted to pay for the mortality charges of the death benefit) D Provide assess to assets or markets that may be difficult to invest directly. These include special government bonds, very expensive equities, or stocks in certain foreign markets. NET ASSET VALUE (NAV) WHAT IS NET ASSET VALUE (NAV) NAV is defined as Net Asset Value whereby the total assets under fund - total liabilities under fund (expenses, payables, charges etc) NAV pricing is consolidated and published on a daily basis and is normally on a T + 2 basis. For example, today is Monday and the client was to sell his/her funds before 4pm today, the price will be published on Wed Unit Trusts are front end loaded so there is no bid offer spread (ILP) How do I know whether the fund is making money or losing money? HOW DOES THE $ GROW? Capital gain is when there is an increase in price of the units(you hold) as compared to the price paid for the fund initially CAPITAL GAIN CAPITAL GAIN Invest in fund by buying units in the fund based on the NAV. INVESTING IN FUND INVESTING IN FUND CALCULATE DIVIDENDS PAYOUT CALCULATE DIVIDENDS PAYOUT Some of the funds pay dividends periodically. Dividends are profits you receive from your share of ownership in a company, which may be paid out to you in cash or in kind. Dividends can be reinvested to get more units or can be cashed out. DIVIDEND DIVIDEND WHAT ARE THE FUNDS AVAILABLE? WHAT ARE THE FUNDS AVAILABLE? Type of Funds Type of Funds Where do you stand.... Risk Level Risk Level FUND FACTSHEET FUND FACTSHEET Geographical Allocation of Funds Different fund has different geographical allocation and are normally broken down into: 1) Global Fund 2) Regional Fund - Asia Pacific excluding Japan, North Asia, ASEAN, Europe, North America, South America, Latin America, etc. 3) Single Country Fund – Singapore, US, China, etc Geographical Allocation of Funds Currency Class Funds may be denominated in different currencies (extra cautious is needed when filling up the fund code in the application as tendencies to make an error in the currency class is common) Common Currency Classes SGD share class SGD-Hedged class EUR share class USD share class RMB share class Currency Class Top Holdings Funds typically have hundreds of holdings but normally only its top 10 holdings are listed out The top 10 holdings are normally companies that are well recognizable with big market capitalisation Examples are DBS Group Holdings Ltd, Oversea-Chinese Banking Corporation Limited (OCBC), Singapore Telecommunications Limited (SingTel), CapitaLand Limited, etc. Top Holdings Useful Sites Useful Sites fundsupermart.com THE WALL STREET JOURNAL Bloomberg CNBC CLOSING TECHNIQUES CLOSING TECHNIQUES Sales Script Sales Script Objection Handling 1) Investment is risky 2) Last time invest before and lost money 3) Buying house soon 4) Prefer Stocks/Shares/Golds Objection Handling Making your money work for you... SHARING SHARING Personal Favourite Funds CPF-OA: A699 Pinebridge India Equity A657 Nikko Am Japan Dividend Equity A237 First State Dividend SGD CPF-SA: A209 First State Bridge A383 Schroder Asian Investment Grade Credit Class A SGD CASH: A697 Allianz Income & Growth A244 Eastspring Monthly Income Plan M A245 Schroder Asian Equity Personal Favourite Funds Personal Results Personal Results