CUTE Sample Ques: 1) 2) 3) 4) 5) 6) ” 8) ay at dade 2006 ned in the following manner: Prices of listed close-ended trusts are deten A. The total value of the assets is divided by the number of units in circulation B. Prices aro determined by the demand and supply in the market such as Bursa Malaysia where the trust is listed C. The Unit Trust Management Company computes the daily prices upon close of business day D. The Investment Committee sets the daily prices In general, which of the following type of unit trust is likely to depreciate most when the overall stock market falls? A. Equity trust . Fixed-Income trust C. Money market trust D. Property trust ‘The Malaysian Unit Trust Funds Performance Table is a useful tool because it: A. Allows performance to be tabled at meetings hold by the Securities Commission. B. Taps into the fund manager's credibllity C. Summarizes investment performance for the the industry and allows for easy comparison D. Enables the public to understand the fees and charges charged by unit trust management ‘companies in Malaysia The Net Asset Value of an Equity Index Tracking fun A. Will fluctuate in response to changes in the prices of equity index component stocks B. Will fluctuate in response fo changes in interest rates only CC. Will not react at all to the ups and downs of the stock market D. None of the optional answer is correct In Year 1995, Encik Jamal put RM50,000 In an investment that earned him 9.0% per annum. Suppose the investment is able to deliver the above yearly return for the past as well as the coming years, when will his money double? A. Year 2000 B. Year 2003, C. Year 2005 D. Year 2007 Which Statement regarding the EPF Members Withdrawal investment Scheme is correct? A. The maximum age for the qualified member is 60 B. Members can withdraw funds from the EPF once in every two months . Investment can be made with any unit trust scheme D. Balance in Account 2 is not eligible for this scheme Which of the following statement is correct? A. The income of real estate investment trusts (REITs) is mainly derived from the rental Income and capital appreciation of the property held by the trust B, The portfolio of a real estate investment trust (REIT) can be switched to equities easily as the assets are highly liquid C. Real estate investment trusts (REITs) are not allowed to be listed D. Unlisted unit trusts are not allowed to invest in real estate investment trusts (REITs) A collective investment scheme is A. A type of fund that allows anyone to collect money from others, much like people collect money for charity B. An investment fund which invests only in a specific collection of shares C. A collection of investments which cannot be sold without permission of the owners D. Another term used to describe a unit trust scheme9) What would you not normally expect to find in the annual report of a unit trust scheme? A, Statement of assets and liabilities of the unit rust scheme B. Auditor's report C. Fund composition and statement of asset allocation D. Unit prices of competitors’ products 10) Generally, prospectus of a unit trust fund must be renewed __ A. Every month B. Every six months C. Every year D, Every two years 41) When was the first unit trust management company sot up in Malaysia? A. 1949, B. 1950 C. 1958 D. 1960 42) Investors who invested in unit trusts with borrowed money: A. Will only make profit if returns from their investment are higher than the cost of thelr borrowing B, Will not affected by changes in the base lending rate sot by their end-financiers C. Are guaranteed to make profit in longer term D. Need to keep on investing until the loan Is fully settled 43) An investor wants to gain exposure to the commercial property market in Kuala Lumpur but with only a small amount of money (approximately RM6,000), she was not able to Invest at all. Which Is a good investment alternative for her? A. Invest in equity index fund B, Invest in fixed income fund G. Invest in any open-ended funds D. Invest in real estate property trusts 14) Puan Rose decided to withdraw some of her savings to invest in unit trusts. She would like to Invest all of her money in a fund at one time and let It grow Irrespective of the market condition. Whereas for Puan Sarina, she has very litle savings but every month she is willing to cut some of her expen and invests in unit trusts. Name the respective ways that can be used by them to invest in unit trusts. ‘A. Spot and installment Plans B. Lump Sum Investment and Regular Savings Plan C. Lump Sum Investment and Contractual Plans D. Fixed Investment and Installment Plans 15) Generally, what are the possible forms of return on investment can an investor expect from investing in unit trusts? |. Dividends Il, Capital appreciation HL Interest etl Brkt cng alt D. All of the optional answers are correct Kindly use tt Given data: |. No. of units held before unit split: 18,000 units UI, Total value of the investment before unit split: RM6,000 IML Unit split ratio: 4 for 3 16) How many units will the investor hold after the unit-split exercise? A. 24,000 units B. 18,000 units. . 15,000 units D. 6,000 units .47) What is her total investment value after the unit-split exercise? A. RM2,000 B. RM6,000 C.RMB,000 —_D. None of the optional answer is correct pital gains to short-term income, 48) If an investor is able to tolerate high risks and prefers long-term c which of the following fund is most suitable for her? A. Growth fund B. Bond fund C. Balanced fund D. Income fund 19) Rank the following funds according to their level of risks from highest to lowest. 1. Equity Growth Fund I. Money Market Fund ll, Balanced Fund IV. Hedge Fund AL MLILIV B.1V, 1,10, I comm D.Ah1, tv 20) Mabel would like to retire as a millionaire. if she has RM500, 000 today and can earn 8% per annum on this amount of money, how long would it take to achieve hor goal? A.B years B29 years €.10 years D.14 yoars 21) In marketing unit trust scheme, providing quality services include: A. Being responsive to customers’ requests, queries and complaints B, Providing clear and precise reporting G. Providing convenient choices in handling investors’ cash and payments D. All of the optional answers are correct Kindly use the following information to answer the questions. ‘An investor had invested a single amount of money in a unit trust fund at RM0.6000 per unit In the first year and subsequently purchased another 10,000 units at RM0.5200 per unit In second year. At the ‘end of third year, he decided to redeem his investment at Buying Price RM0,6000 per unit and the total proceeds was RM15,000. 22) How many units was he entitled for the Investment he made in the first year? A. 15,000 units €.36,000 units B. 25,000 units D. None of the optional answer is correct 23) What is the total amount of money he had invested in the first and second year? A.RM7,500 B.RM5,200 —C. RM12,700 _D. None of the optional answer Is correct 24) Upon redemption In the third year, calculate the raw return of the Investment that he made in the first year. (Assume no distribution was paid during the perlod) A. 15% 5.18% ©. 20% D. 100% 25) Which of the following is the most appropriate thing to do if you meet a person who has never Invested in unit trusts and does not feel comfortable to Invest in unit trusts? ‘A. Let the potential investor have a prospectus and walk through with her B, Comfort her by letting her know that unit trust is an investment with no risk C. Show her the marketing brochure and take them back as you need to show the brochure to another investor D. Show her the excellent performance record of the unit trust fund and tell her that the performance will repeat in the future 26) One of your friends tells you, “By the time I retire in Year 2020, | bellove the Kuala Lumpur Composite Index (KLCI) will be many times what it is today. I'm 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 that the KLCI by Year 2020 B. Buy a Balanced Fund because its investment returns are less volatile than the KLCI C. Buy an Index Tracking Fund using KLCI as the benchmark D. For such a long investment horizon, don’t worry: buy any fundKindly use the following data to answer the question. Net assot value cum-distribution for a unit trust is RM200 million. Unit in circulation is 380 million units and the fund manager is charging a 5% initial service charge. (Please use 3 decimal places for calculating purpose) 27) Ifthe distribution declared is 3.5 sen per unit, how much is the selling price ex- distribution? (Round the answer to the nearest sen) A. RMO.49 B. RMO.52 C.RM1.86 D. RMI.96 28) Based on the above answer and assume that a client invested RM10,000 ex-distribution, how many - units will she get for her investment? B. 19,436.34 units, 6,120.33 units D. 6,102.04 units A, 20,408.16 ui 28) If the initial service charges is reduced from 5% to 3% and based on the selling price ex-distribution, how much saving can the client get, given the same number of units purchased in previous question? A. RM326.53 B. RM184,93, C.RM327.95 D.RM200.00 30) Unit trusts offer an effective way to pursue lifetime financial goals with advantages that would be difficult to achieve by lay persons who invest on their own. The advantagos includ |. On-going professional fund management Il Diversification of assets with reduced risks Ill, Can be bought and sold easily IV. More favorable transaction costs for unit trusts due to large investment amount V. Flexibility to switch between different type of funds (applicable to certain unit trusts) AL 18M BLAH, & IV C11, tH, av D. All of the optional answers are correct Kindly use the following information fo answer the questions, In the annual report of ABC Millennium Fund, the expenses Incurred by the fund during the financial year were: (RM) Annual management fee: 3,528,673 Trustee fee: 150,326 Auditors’ remuneration: 16,300 Administrative expenses: 28,418 The average net asset value for the period was RM235,300,528. 31) Calculate the Management Expense Ratio (MER) of the fund for the financial year. A. 1.50% B1.58% C.0.07% D.0.01% 32) A decrease in the MER calculated from the above indicat A. The annual management fee must be revised downward B, The Unit Trust Management Company (UTMC) must be overpaid for the administrative expenses €, The UTMC is not managing the total feos and expenses well D. The UTMC is managing the total fees and expenses well 33) “Market risks” Is a type of risks Involved In investing in equity unit trusts and it mean A. Stock values underlying the Net Asset Value (NAV) of the unit trust scheme fluctuates in response to the activities of individual companies and general market or economic conditions. Such movements will cause the NAV of prices of units to fall as woll as rise. B. Poor Management of the scheme will jeopardize the Investment of unit holders through the lost of their capital invested in the scheme €. Unit holders might be forced to provide additional funds to restore their loan margin when the value of the unit trusts scheme dropped drastically D. None of the optional answer is correct34) One of the major benefits of investing in unit trusts is to gain access to the experionce of a professional fund manager. Which term best describes a profession A. Someone who has bought and sold many investment in his lifotime B. A friend who always recommends the best stocks to buy C. Someone who always manages in excess of RM500 million D. Someone who has been professionally trained in the field of fund management 35) Raw return is: A. The best measure for unit trust return B. A form of measure which is superior to the annualized return ©. A measure that shows the total return achieved by holding the investment over the entire period between buying and selling D. The only return measure that accounts for the value of timo 36) Unit Trust Management Company (UTCM) must issue a prospectus for each of its unit trust schemes. The UTMC is required to: A. Issue a prospectus at least once a year B. Provide complete information C. Send a copy to any potential investor who request a copy D. All of the optional answers are correct. 37) Riskireturn characteristics can vary significantly between two funds. Which of the following statement is not a correct comparison of the risk/return trade-off between Investing In a Capital Growth Fund (G) and a Capital Protected Fund (P)? ‘A. G's return are potentially higher than P's because G Is less risky B. Gneeds to adopt a riskier investment strategy to achieve potentially higher returns C. P's losses are potentially less because It takes loss risk D. Expect a lower return from P because the fund takes loss risk 38) In all investment-related industries, what is the most important component for investors to have In the product they are purchasing? ° ‘A. Performance B. Confidence C. Risk D. Relationship 39) A listed trust is commonly known as. Regional Trust A. Open-ended trust B. Universal Trust _C, Closed-ended Trust 40) En.Adam has invested RM5,000 in ABC Growth Fund managed by ABC Unit Trust Management Bhd. En, Adam now own: ‘A. RM5,000 worth of units of entitlement in the ABC Growth Fund B, _RM5,000 worth of shares in ABC Unit Trust Management Bhd C. RM5,000 worth of direct ownership of Investment portfolio held by ABC Growth Fund D. All of the optional answers are correct 41) What happens when a unit split of 1:2 Is declared? ‘A. Tho unit price doubled B. The units in circulation doubled . The unit price decreases proportionately D. None of the optional answer is correct 42) Amongst others, the calculation of Net Asset Value (NAV) of a unit trust schome involve |. The value of the equity investments {l, Costs and charges involved in various transactions of the scheme Ill, The value of money market instruments (if applicable) IV. Accrued gross distribution and interest income after deduction of relevant fees and expenses such as annual management fees and administrative expenses A 18 IE B. 1," & lt C.1,I&IV —__D. All the optional answers are correct.43) In order to enhance professionatism in marketing of unit trusts: {tis irrelevant what promises are made to clients with respect to investment returns Itis important to provide superior service to clients and attend fo their needs ILis important to observe as many markoting leads as possible ICis important to recommend to potential clients the best performing unit trusts regardless of the suitability of her risk profile to the fund pom> 44) What is the risk of an investor directly investing in a small number of shares? ‘A. The investor is exposed to the risk of either making or losing large portion of her investments B. The investor benefits from diversification of portfolio - C. The investor is able to consistently reap high returns of investment D. tis easy for investor to select good company 45) A unit split in effect does not add value to the unit trust investors’ Investment holding, but__ ‘A. Makes sure that the fund managers are able to earn thelr fees B. Is used by unit trust management company to lower the NAV per unit, thus enabling new investors to Invest in the fund C. Is used to enlarge the fund size in Ringgit torm D. Is used to re-classify the fund to “Penny-Stocks” fund 46) Dollar-Cost Averaging is: A. Astrategy that entails buying low and selling high B. Away to purchase unit trust funds and minimize the service charge C. systematic way of regular investment with fixed amount of money D. Away to sell unit trust funds and to minimize the capital gains 47) How can an investor hedge against inflation? 1. Cut down all the unnecessary expenses and keep the money at home II. Lower the tax rate of the investment Ill. Invest the money in an instrument that can generate a higher return than the inflation rate IV, Maximize the benefits of effective financial planning A. 1élll Bem & IV 1m &tV. Dot ML & IV 48) Daily Net Asset Values of unit trust schemes are available through: ‘A. Referring to the unit trust pricing tables published by major newspaper B. Calling the Unit Trust Management Company . Visiting the Unit Trust Management Company's head office or its branche: D. Allof the optional answers are correct 49) What is the most important benefit you will get from creating a diversified portfollo that includes stocks, bonds and money market funds? A. Aguarantee that your portfolio won't suffer if the stock market falls B. Higher returns than you will get from a portfolio that isn’t diversified C. The ability to balance both risks and returns in achieving your financial goals D. All of the optional answers are correct 50) Pointing to the latest performance table, Mel Ling enthusiastically tolls you “Look! The OMG Small- Cap Fund was up 36% last month, | think this fund may be best for me to invest.” Knowing that choosing a fund merely based on best record in the previous month is not in her best interests; what other aspects would you advise her to look into before investing in the fund? 1. Consistency of the fund's performance in medium and long term |, Her own financial goal and decide how much risks she can afford to take lil, Suitability of the fund's investment objectives and riskiness with her own Investment goals and risks profile IV. Total fees and charges imposed by the fund and the service level provided A. ai BN& I C.LI& Ill D. All of the optional answers are correct 651) Which of the following usually increases the overall risk level of your portfolio? A. Shifting your investment from bonds to stocks B._ Shifting your investment from stocks to bonds C. Shifting your investment from stocks to money markets D. Shifting your investment from stocks to fixed depos 52) Please identify features of an open-ended unit trust. Itis a collective investment scheme that provides an opportunity for small investors to participate in stock market investment Il. Ownership of the fund is divided into units of entitlement lll, If the market condition is not encouraging, the unit holders will not be able to liquidate their investment as other investors are not keen to purchase A 181 c.g B. 1glll D. All of the optional answers are correct 53) Which of the following best describes “Aggressive Growth Fund"? ‘A. The fund will invest primarily in stocks which earn significant dividend income B. The fund will normally generate returns which closely resemble the performance of a stock market index, both in terms of risk and return C. Generally the fund will be invested in stocks with higher growth potential and with higher risk characteristic D. The fund mainly invests corporate bonds, government securities and liquid assets 54) Which of the following is not the right of unit holders? ‘A. To obtain information about the unit trust scheme and its performance B. To receive profile of board of directors. C. To redeem units D. To select shares for the unit trust schemo’s portfolio 55) Which of the following statement is not valid? . A. Investors are entitled to receive unit trust certificate or statement for his investment B, Unit trusts aro professionally managed by the unit trust management company . Unit holders directly purchase the securities in the investment portfollo of the unit trust D. Value of a unit will fluctuate in line with the changes in the net asset value of the unit trust 56) Generally, a unit trust that has 80% of Its assets invested in growth stocks would be the most appropriate type of investment for the preparation of: A. Acollege fund for an 18-year-old B. An individual retirement fund for a 52-year-old C. An income-producing savings for an 86-year-old D. None of the optional answer Is correct 57) The best way for investors to minimize the impact of the initial service charge on unit trust investments Is to: A. Buy and sell units as they can B. Invest as regular as possible and avoid lump-sum investments . Adhere to a long-term buy and hold strategy; making sure that the units purchases match thelr long-term investment objectives D. Only purchase aggressive growth fund 68) Which of the following should be included in the computation of not asset value of a unit trust fund? A. Tho valuo of the equity investments in the unit trust scheme B. Trustee fees C, Auditors’ fees D. All of the above59) What is one of the functions of FMUTM? A. Reviews all materials prior (0 release to the public B. Generates all the guidelines that unit trust companies comply to and to report to the Compliance Authority if non-compliance is found C. Provides a common platform for unit trust companies to discuss issues in the industry D. A governing body which regulates the investment made by the unit trust management company 60) “Leveraging” into an investment means A. Borrowing funds to invest to gain maximum exposure, expecting that the rate of return on investment will exceed the borrowing cost, thus giving rise to additional profit - B. Lowering the risk of investing especially in unit trust . Using the dollar cost averaging method to lower down the cost per unit D. Lending money to Investors who wish to gain maximum exposure to make sure the growth of the assets Given Data:- ‘+ Initial Investment - RM 60,000 Term of Investment - 3 years Expected Investment Return bofore Foes & Expenses - 10% per annum On-going management fee 1.5% per annum Initial Service Charge 5% 61) Calculate the expected value of Investment at the end of third year. ARM 97,317 B. RM 101,156 C. RM 102,183 D. RM 106,480 62) How long does it approximately take for the expected value of the Initial investment to reach RM160,0007 A.7.2 years B. 8.6 years 6.144 years D.20.8 years 63) Now assume that the on-going management fee Is 1.0% instead of 1.5%, what Is the expected value of the investment at the end of third y A.RM 98,669, B, RM 101,156 C. RM 103,602 D. RM 106,480 An Investor had invested a single amount of money in a unit trust fund at RM 0.80 per unit In the first year and subsequent purchase another 20,000 units In second year. At the end of third year he decided to redeem all his Investment at Buying price RM 0.90 per unit and total proceed was RM 79,200. 64) How many units was he entitled for the Investment he made In the firet year? ‘A. 68,000 B.79,200 —€.88,000 D. None of the above 86) Given Investment return 10%, Marginal tax rate 20%, Inflation rate 6%, what Is the effective rate of return? A 3% 4% 5% D.2.6% 66) Which of the following could not be used as an investment benchmark when assessing investment performance? A. The Kuala Lumpur Inter-Bank Offer Rate (KLIBOR) B. Kuala Lumpur Composite Index (KLCI) . 5-year bond rate D. Current account situation as a percentage of Gross Domestic Product (GDP) 67) Maximum Initial Service Charge Is disclosed In:- A. Deed B. Prospectus C. Marketing Materials _D. All of the above68) What is your understanding for ‘Call Margin"? A. Itis the amount an investor might have to pay his/ her financier if the credit exposure of unif trust Joan falls beneath a certain level. B. It is a type of processing fee imposed by financier to finance unit trust investment . itis a financier’s marked up margin imposed on top of base lending rate applicable D. Itis charges imposed on futures contract 69) Unitholder F is a first-time investor and has purchased UTS XYZ from PDUT B, on Tuesday, 2 May 2006. After returning home, he met some friends who have experiences in UTS Investment. Prior to his discussion with his friends, he started to feel that he did not fully understand the purchase and he also felt that PDUT B has misled him by focusing more on past performance of UTS XYZ. What is your advice to the Unitholder F? A. Unitholder F cannot do anything at all as the purchase has been made. B. Unitholder F should wait for the right time to repurchase all his units. . Unitholder F can exercise his “cooling-off” right which is an opportunity to reconsider his purchase. D. Unitholder F should terminate PDUT B's services immediately. 70) Unitholder Z received an Annual Report on the performance of UTS B which he Invested in. Listed below are the major contents of the Annual Report which he will come across except: 1) Average Annual Return over one, three and five years, and since launch. i) UTS B's investment objectives and policies. I) Auditor's Report IV) Risk Disclosure Statement. \V) Cooling Off Right A. 1&Vonly BI, Monty C.lll, 1V,V only D. Vand V only Given Tax rate 120% Inflation rate: 4.5% Rate of return : 11% 71) What Is the offective rate of return after tax and inflation? A. 45% B.A% €.4.3% D.4.2% 72) Assume that the inflation rate rise up to 4.8%, what Is the effective rate of return? A.4.5% B.4% C.4.3% D,4,2% 73) 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 were 1,000,000 units. Calculate the NAV per unit ex distribution, A. RM1.49 B. RM1.46 C.RM1.50 D.RM1.40 74) 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 .Spread —_D. “Buying” a distribution Lump Sum Investment + RM100,000.00 Initial entry cost B On-going management fe Rate of return 75) What is the return of the investment after 10 years? A, RM233,839. B.RM234,831.26 © C. RM233,647.23 ©. RM234,098.95, 76) Assume that the initial entry cost decreased to 6%, what Is tho value if thé investment after 10 years? A. RM233,839.11 8. RM235,089.59 -C, RM235,938.96 —_—D. RM234,098.9577) An investor buys or disposes the units in UTS based on the unit price quoted by UTMC which is determined at the close of the business day. The above statement is referring to the practice of A. Forward Pricing B. Historic Pricing C. Today's Pricing _D. Future Pricing 78) Fixed-income funds are generally said to have lower risks than equity funds. Hence, what can be expected from the return of these funds? ‘A. Usually higher than equity funds. B, Usually lower than equity funds C. Consistently higher than equity funds D. None of the optional answers are correct, 79) What type of investment would you most expect to find In aggressive growth fund? A. Investment in cay B. Cash . Investment in properties with regular income D. Shares of technology-company recently listed on the stock exchange | guaranteed life insurance products 80) The best way to help investor to go through the prospectus Is to begin with: ‘A. Members of the Investment Committee B. Fees & Charges . Key Data Section D. Profile of the Board of Directors and Key Management Staff 81) An Index UTS ‘A. Invest primarily in all of the securities or representative sample of the securities that are included ina selected market index. B. Invest primarily in overseas share markets. C. Invest in real property, usually prominent commercial properties. D. Invest in a range of companies that closely match companies comprising a particular index. most when the overall 82) In general, which of the following category of unit trust Is likely to depreciat stock market falls? A. Property trust _B. Fixed-income trust C. Equity trust. —_—D. Money Market trust 83) The maximum margin on unit trust financing Is fixed A. 85% —-B 67% ©. 50% D.79% 84) Mr. X wants to invest RM 200,000.00. What Is the maximum amount can he borrows from a financial Institution for the Investment? ‘A. RM134,000.00 8. RM66,000.00 C.RM120,000.00 _D, RM80,000.00 85) Which are the parties Involved in the unit trust industry? nuTmc 1) Trustee UM) Investment Manager IV) Unitholder A. Landi B. 1 Mand It C.h. and IV D. All of the above 86) Which of the below are parts of the prospectus? I) Investment Objectives Il) Authorized investment Ill) Fees & charges IV) Trust expenses. A. All, it B.IVonly C.land tt D. All of the above87) Which of the following isfare the risk(s) of borrowing to invest in UTS? 1) Interest rate fluctuations Il) Dofautt in repayment of loans {Ml Premature repayment of loan V) Margin call A. Land tl B. and il C.lland i D. All of the above 88) What is the term used if Mrs. Z wants to reinvest her distribution in UTS? A. Distribution Reinvestment C. Suspension - B. Buying Distribution D. Distribution Equalization '89) Investor A and Investor B had won the Millionaire contest and received cash price of RM64,000 each. They decided to invest their prize on Fund A and Fund B respectively. Investor A Investor B Fund A RM64,000 - Fund B : Rm64,000 The average annual return for Fund A Is 8.5% and Investor B has managed to double his Investment by 4.27 years earlier than investor A. what is the average annual return for Fund B? A. 75% —B. 10% C.8.75% D. None of the above 90) Mr. A says “oh! XYZ fund is really good. | shall Invest in this fund to get high return in 3 years time!” Upon hearing this, A PDUT should advise Mr. A which of the following? ‘A. The fees and services for the particular fund B, The possible risk involved C. To go through the prospectus. D. Allof the above is correct NAV Amount invested 0.60 RM1600,00 0.60 RM1800.00 0.70 RM1500.00 91) Calculate the aver ge unit cost for the above investment. A. RMO.59 B.RMO.95 C, RMO.78 D.RMO.64 92) Which of the following provides a common platform for unit trust management companies to discuss issues relating to unit trust industry? A, Registrar of companies. B.FMUTM csc D. Minister of Finance the fee Is... 93) The fund manager of unit trust scheme Is allowed to charge a management f ‘A. Mainly used to cover the management expenses incurred by the manager in managing the scheme B. Also known as a....fee charge by the trustee . Levied by the fund manager on the Investment made by investors to cover the commission pald to agents D. Used for the purpose of registering the unit holders with the trustee 94) Suppose that put of the asset allocation of fund X and fund Y are as follows. Fund X Fund ¥ Equity Market 70% 0% Money Market 10% 85% Fund X Is most appropriate to be classified as :- A, Equity Fund B. Fixed Income Fund C. Property Fund —_D. Maney Market Fund i95) Which statement is correct, | = Interest rate decreased, value fund Y will be more adversely affected I= Interest rate decreased, value fund Y will be more positively affected lil - Value fund X will be more positively affected when the stock market is increasing A. Lonly B.1& Ith cna til D. All correct 96) Which of the following is (are) true about a bond fund? 1 ~Itis best to buy when interest rates are peaking and bond yields are high Il -Manager's fees and charges are generally lower compared to the equity fund I - Fund prices will fall when interest rate rise IV - No matter when you redeem your investment, you will get back at least your principal amount or capital you have invested A. Wonly — B.L& AL C.11& ill, All of the optional answers are correct. 97)Which of the following is NOT true A. Generally, the portfolio of unit trust invest mont Is determined by fund manager B. A.unit trust is an investment mechanism which allows Investor who shared similar financial objectives to the pool their money C. The portfolio of investments is allo D. Unit holders do not directly purchase th units id to Include only one asset class curities and the ownership of the fund Is divided Into 98) For every unit trust fund, how many reports must UTMC publish each financial year? A. At least one B. At least two C. At least three D, At least four 99) What is unit trust scheme? A. Form of collective investment that allow investors with similar objectives to poo! thelr saving B. An investment portfolio which only contains one typo of asset C. Form of collective investments whereby the unit holders are the shareholders of the company they have invested In D. An investment portfolio whereby the investors of the particular UTS will purchase the the portfolio directly ;curities in 100) For the Financial Year Ended 30 Dec 200X, the financial statement of ABC Fund shows that the following expenses were Incurred: Management Fees — RM1,340,999 Trustee Fees ~ RM 730,173 Auditors Foo ~ RM 172,641 Bank charges & other expenses ~ RM 361,594 ‘The average Fund Size for ABC fund during the year was RM 260,492,853. Calculate the MER of fund of the fund for the year ended 30 Dec 200X. A. 1.07% B. 1.03% C.1,08% D. 1.04% 101) What does a gradually decreasing MER over a period of several years Indicate? ‘A. UTMC is not managing Its operating cost well B. UTMC is managing Its operating cost efficiently for Its fund size . That all newly launched UTS will have MER D. UTMC is managing Its operating cost efficiently 102) How do investors overcome the impact of inflation? A. By reducing the tax rate B. Investors need to preserve the purchasing power of the original Investment C. Hope to earn a return that Is less than the Inflation rate D. None of the optional answers are correct 12103) A PDUT should not say: A. Investing in UTS has no risk B. Ifdo not have enough money to invest, investors should apply for a loan C. Returns are guaranteed when investing in UTS D. Allof the above 104) Dollar Cost Averaging (DCA) can affect the average cost of investment. Which statement clearly explains the DCA effects? 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 k term period C. With fixed amount of money, Investor can acquire more units at lower price and fewer units at D. sor units In a fluctuating market over long higher price which can reduce the average cost over long term period With fixed amount of money, investor can acquire regular amount of units at lower price which can reduce the average cost over long term perlod 108) The followings are the roles of UTC, except; A. Inform the investors about the structure of UTS and what are their rights as unitholder B. To be responsible to the customer's request as with honesty and dignity C. Force sell to the customers In order to get benefits from their Investment D. Fine tune their product knowledge 106) It is important for the UT industry to be regulated In order to protected clients’ investments, Which of the following Is not an authority Involved in UTS regulation? ‘A. Ministry of Finance . Institut Bank - Bank Malaysia B. Bank Negara Malaysia _D. Securities Commission 107) is a sales charge or entry fee levied by a UTMC on the Initial purchase of UTS. The charge is sometimes called a ‘load’, ‘front end load’, or sales or entry charge. The charge can be expressed either as a fixed amount or calculated as a percentage of the NAV of a unt. A. Initial Load Chargo C. Initial Service Charge B, Initial Sales Charge D. Initial interest Charge 108) What is the name of the regulatory body for UTS In Malaysia? A. Bank Negara Malaysia c.FMUTM. B, Registrar of Companies D. Securities Commission 108) If NAV of a fund is RM1.00, the fund manager declared a distribution of RM0.12, how much would an investor recelve If he redeems 10,000 units after distribution? ‘A. RM10,500.00 Cc. RM9,800.00 B.RM 8,800.00 D. RM10,800.00 110) The main objective of the Acts that regulate the unit trust Industry Is to safeguard the benefits of the: A Unitholder B. UTMC C.Trustee —_D. Securities Commission 111) Which are the key requirements of a trustee? |, Must be a trust company registered under The Trust Company Act,1949 {i Must be independent of the UTMC and UTS Ill, Must be registered with the SC WV.Act as a custodian by holding all the assets belonging to a UTS Aland it B. ll only C.1Vonly —_D. All of the above 112) Assume an investor has invested a lump sum of RM2S, 000.00. 2 years later the total returns were M27, 300.00. Calculate the compounded return from this investment. A.5.5% B.4.5% C.6.5% D.7.5% 13113) What will be received by the investor's gonorally after they have invested in UTS? |. Confirmation that the investor's application amount has been received. I. Confirmation of the number of units acquired in the UTS, and the NAV of a unit on the date of allotment of units. lil, Confirmation on the rate of initial service charge imposed both in percentage form and actual value as well as the percentage form and actual value as well as the net amount invested net of service charge. IV, Confirmation of the rate of exit fee imposed both in percentage form and actual value as well as the total amount repurchased, V. Acertificate for the number of units issued. A. iyland tt B.tonly C.ALitl and V D. bill and iV 114) When did RHB Unit Trust Management Berhad Introduced the first Islamic bond fund? ‘A. 2000 B. 2001 .2002 0.2004 115) Which of the below is/are NOT part of the Code of Ethics? |. Fair dealing 1 Competence Ill, Uso of authorisation IV. Acting with due care, skill and diligence V. Compliance with law A.lilandV B.11,1V—C,lllonly ——_D, None of the abou 416) Which of the following is NOT true about the agency structure? A. The standard structure comprises a Group Agency Manager, an Agency Manager, and Agency Supervisor and an Agent. B. There must be more than 4 tiers. . The unit must not exceed 50 persons in total at all times. D. An agent is not allowed to recrult other agent 447) What do you understand about unit split? A. Itaffects the NAV of the UTS B. It affects the value of a unitholder's Investment C. It does not affect the NAV of the UTS or the value of a unitholder D. None of the optional answers are correct. Investment. 118) A complaint can be referred to: A.UTC B. UTMC C.FMUTM & SC D, All of the above 119) For a Syarlah based UTS, where can the excess cash or liquid assets be keptiinvested?: A, Investment accounts B, Current accounts . Syariah-based instruments D, None of the above 120) Which is not true about management foo? A. The annual management fee Is calculated on the Gross NAV of UTS B. The average annual management foe Is 1.5% C, The management fee is to cover the cost of managing UTS D. The fee is an optional requirement to be included in the prospectus124) There are many potential risks that are related to investing in UTS. Listed below are a few types of risk. Which of the following has an incorrect description? A. Market risk —stock value does not fluctuate in response to the activities of individual companies and genoral market or economic conditions. B, Liquidity risk — defined as the ease with which a se depending on the market. C. Inflation risk — the risk of high inflation will affect the real return from investment D. Risk of non-compliance-risk that specifically occurs when a Syariah complaint security is reclassified as a Syariah-non complaint Sekurities, ly can be sold at or near its fair value 122) What doos liquidity means in the context of UTS? - A. Unit can be bought easily. B. Average cost of investment acquired to below th C. Investors can sell their Investments at any time D. Payment of income to unitholders. rage price 123) Net Asset Value = RM250, 000.00 Unit in circulation = 300,000.00 Distribution of income = 3.5 ¢ Unit split = 1.8 Calculate the NAV per unit ex distribution. (3 decimal points for calculation) A. RMO.73 B.RMO.80 C.RMO.70 ——D. RMO.76 124) Calculate the NAV per unit ex distribution assuming post unit split. (use 3 decimal points for calculation) A. RMO.63 B.RM0.60 C,RMO.67 D.RM0.69 4125) Which Is not true regarding the role of FMUTM?, A. To provide self-regulation for the UT Industry B. Appointed by the SC to conduct unit trust examinations for person wishing to become UTC C. To advise the Minister of Finance D. To work closely with the SC In the development and growth of the unit trust Industry. 126) Which is not true about a UTC? A. UTC should introduce himself as a unit trust agent B, UTC does a need analysis for his client C. UTC needs an IA and UTC license D, UTC recommends a unit trust product 127) Given: xX = 70% Equity 20% Equity 30% Money Market | 80% Money Market Which of the following Is true? ‘A. Ifthe markot falls, Y will bo more negatively affected than X. B. Ifthe market falls, X will be more negatively affected than Y. C. Ifthe market rises, both X and Y will be negatively affected D. None of the above Is correct. 128) How do we calculate redemption price? A. NAV plus Transaction Cost Factor C. NAV plus an exit feo B. NAV less Transaction Cost Factor D. NAV less an exit fee 15129) What does a register contain? A. The category of funds each investor has invested in. B. The total of investments each investor has in each fund category C. Personal data relating to each investor D. None of the above 130) Which of the parties below has been established to investigate any complaints from customers? A. Appealing Committee B. Investigating Committee ©. Disciplinary Committee a D. Investment Committee 131) Given an inflation rate of 5%, how much will education fees of RM80,000.00 cost in 10 years time? (Use 4 decimal points for your calculation) ‘A. RNM146,601.00 B, RM 130,000.00 C. RM 130,312.00. RM 114,023.00 432) Islamic finance in Malaysia began to develop with the establishment of: A. Shell MDS Sdn Bhd CC, Bank Islam Malaysia Berhad B. The Islamic Capital Market Unit D. Malaysia Capital Market Masterplan 133) Net Asset Value of the fund did not change with UNIT SPLIT. Why does the UTMC take the options to split? ‘A. Gain Management Fees B. Increase fund size in term of ringgit C. Lower unit NAV so that new Investors can purchase D. Increase unit NAV to benefit existing unitholder. 134) NAV calculation includes: 1. equity market lil transaction cost of UTS Ml, money market (if applicable) IV. MER A. land B.1,llandill C.1, land IVD. All of the optional answers are correct, 185) Distribution can be used L.Relnvest Il, Use on oneself _ ill. Purchase UTMC shares. Bland Il Mand ttt D, All of the optional answers are correct |. Regulatory body to control Investment decision by UTMC. |l. Common platform for UTMC to discuss issues Ill, Guideline & report to regulatory body for non-compliance on investment IV. Safeguard the assets of the fund of the optional answers are correct. A.1, land ith 1, land Iv C.l,Mandiv—D. 437) FMUTM |. common platform for UTMG to discuss Issues Il, to agree on standards of practice for the protection of the interests of unitholders, Ul, to improve regulations, tax and other rules affecting the sales of unit trusts. A.tand it B.llandill C.landill_ _D. all of the optional answers are correct. 16cts or services related to tho 138) “Halal” stocks do not invest in companies involved in activities, produ following 1. Conventional banking Ul Telecommunication tl Gambling IV. Alcoholic Beverages A. Hlonly BLM & IV com & IV D1, Mm & IV - 439) Which of the following offer(s) the cholce(s) of what an investor can do with the distribution paid by unit trust funds? |. Reinvest in the unit trust fund, which means the distribution buys more units Il. Take the money out and spend It Ill, Buy more shares of the Unit Trust Management Company A W&M | BABII C18 D. None of the optional answor Is correct 140) If NAV of a fund is RM1.0000 the initial charge Is 1.6% and no exit fee Is imposed, how much would an investor receive if he redeems 10,000 units ? ‘A. RM9,850 B. RM10,000 C. RM10,160 D. None of the optional answer Is correct 141) The main purpose of a prospectus Is: A. To provide potential and existing Investors with all the necessary Information to make an informed decision, B. To outline the marketing plan of the unit trust scheme C. To highlight the projected returns of the unit trust scheme D. To outline the profile of the target investors 142) Amongst others, the calculation of Net Asset Value (NAV) of a unit trust scheme Involve |. The value of the equity Investments. i, Cost and charges Involved in varlous transactions of the scheme. lil, The value of money market Instruments (if applicable) IV, Accrued gross distribution and Interest Income after deduction of relevant fees and expenses ‘such as annual management fees and administrative expenses. Al&ll B. i & tll . Ul & IV D. all of the optional answers are correct fou may inadvertently say the wrong things. Which of the following Is (are) 143) In a haste to close sales 8? not the right proposition(s) to A. “it is safe to Invest now. The market is going up and you will definitely make profits” B. “No money is not a problem because you can apply for a loan” ©. “You'll get free insurance or gifts and | can add on some additional units for you” D. All of the optional answers are not the right propositions. 17144) Unit trust offer an effective way to pursue lifetime financial goals with advantages that would be difficult to achieve by lay persons who invest on their own. The advantages include: |. On-going professional fund management. ll. Diversification of assets with reduced risks. Ill, Can be bought and sold easily. IV. More favorable transaction to large investment amount. V. Flexibility to switch between different type of funds (applicable to certain unit trusts) AL bilgi B. bill &1v LiL &v = D. All of the optional answor are corroct 145) is also the term used for the price at which units aro sold to the public. It is similar to the ‘unit Net Asset Value (NAV) of the unit trust fund, A. Offer price B. Redemption price ©. Sorvice charge D. Buying price 4148) Which of the following best describes the disadvantage of financing Investments of a unit trust fund through borrowing? A. Ina rising market, the value of the Investment in unit trust fund and the loan borrowed rises. B. The value of the investment in unit trust fund does not fluctuate with share market prices, but the Joan financing does €. Ina falling share market, the value of investment in unit trust fund may be decreasing whilst tho loan liability remain constant, or increasing. The effect of this may result in the need to Increase the collateral to the financial institution, D. None of the optional answer is correct. 147) The Unit Trust Scheme (UTS) can only invest In securities that; A. Guarantoo the highest return with minimum risks B. Have been authorized in the Deed of the UTS . Have small market capitalization with great potential for capital appreciation In the long run. D. Are well diversified in the global markets. Kindly use the following information to answer the questions. Hasnah Invested all the money that she collected from her parents and relatives during Hari Raya In fund A and fund B on 13 January 200X, The unit prices at the close of business on the day and other Information rolated to hor investment are as follows: Eund A Eund B 1. Total Invested: RM1,000 RM1,000 Ml. NAV per unit: RMO.2700 —- RMO0.8296 Ill. Selling price per unit: RMO0.2700 = RM0.8296 IV. Buying price per unit: RM0.2700 —- RM0.8296 V. Initial Sales Charge 5% 0% VI. Exit Fee: 0% 2% Vil. Pricing policy: Forward Forward 148) Calculate the total number of units received by Hasnah for her investments made in Fund A (W) and Fund B (X) respectively. A. W=3,527.33 units; X=1,205.55 units B, Ws3,703.70 units; X=1,265.82 units C. Ws3,407.41 units; X=1,145.27 units D. None of the optional answer Is correct 149)An existing investor Mary decided to sell all her 5,000 ul would she receive from her redemption? in Fund B on the same day, how much A. RM4,064.55 B. RM4,147.50 C. RM1,350.00 D.RM1,417.50480) With the above information, Hasnah’s friend told you: “I think | should invest in Fund A mainly because the units of the fund are much cheaper that those of fund B. Should both of the funds achieve the same rate of returns, then the value of every Ringgit that | invested in Fund A will be higher than those of Fund B. Is she right by saying so? A. Yos, she Is perfectly right B. Not really. Although Fund A is a cheaper than Fund B, the value of her investment in either one of the fund will still be the same if both of the funds achieved the same rate of return. C. No. the statement is wrong. Should all other fees and charges imposed by Fund A and B are tho same, then Fund A is more expensive than Fund B. Consequently, the value of investment for every Ringgit that she invested in Fund A will be lower than those of Fund B if both of the fund achieved the same rate of returns. D. None of the comment is acceptable. Kindly use the following information to answer the questions. Clk Zarina and Encik Hamzah took part in a millionaire contest and won RM64,000 cash respectively. Both of them decided to invest their cash prizes at the same time as follows: Zarina Hamzah | Investment A RM64,000 0 i, Investment B 0 RMie4,000 RM64,000 —RM64,000 451) Suppose that investment A provides an average annual return of 8.5% and value of Encik Hamzah Investment doubled approximately 1.27 years earller than those of cik Zarina, what is the average annual return of investment B? A. Approximately 7.39% B. Approximately 9.77% GC. Approximately 10.00% D. None of the optional answer is correct 152) Suppose that the amount of the cash won by them Is RM128,000 each and all else being unchanged, what is the average return of Investment B? ‘A. Approximately 14.78% B. Approximately 19.54% C. Approximately 20.00% D _None of the optional answer Is correct Pk he following inform: A family spent RM25,000 on goods and service last year and RM26,125 this year. Assume that the pattern, value of consumption and the inflation rate remain unchanged. 153) How much money will the family need next year to maintain the same living standard as this yoar? A. RM27,301 B. RM27,260 C. RM26,125 D. None of the optional answer is correct 454) Base on the above inflation rate, if an investor earns a 6% return for his Investment, his marginal tax Is 20%, what Is his effective return after tax and inflation? A. 15% B. -15% C. 0.5% D. 0.3%455) The unit trust funds that are availablo in the market could be designed to meot the following investor requirement(s) A, Long-term savings B. Children’s education CC. Retirement fund D. All of the optional answers are correct 456) An investor bought unit trust from an agent who provided incorrect information about the fund. With whom can the investor lodge a complaint? |, Federation of Malaysian Unit Trust Managers (FMUTM) e i. Securities Commission Ill, Unit Trust Managoment Company concerned IV. Ministry of Finance A. tonly B.l&I CHV DLN aI 157) Which of the following fund is best described by this statement? “The unit trust fund Is managed in accordance with Syariah Principles alms to miximise capltal returns over medium to long-term by investing mainly In equities listed on the Bursa Malays! A. Balanced fund B, Islamic fund C. Property fund D. Fixed-Income fund 458) What is (are) the basic quality (les) of a professional Persons Dealing In Unit Trust(PDUTS) A. Give timoly and accurate information B. Keep abreast on the latest development in the unit trust industry C, Provide on-going advisory and services D. All of the potential answer are correct 459) Which of the following forms the minimum standards of conduct expected registered Person Dealing In Unit Trusts (PDUT) and are intended to be a guide to ascertain whether a registered PDUT Is acting ina manner which continue to satisfy the Minimum Standards for Registration? A, Code of Ethics and Professionalism. B, Code of Ethics and Standards of Professional Conduct. C. Code of Ethics and Standards of Professional Conduct for Multi Level Marketing. D, None of the optional answer is correct 460) Which of the following is (are) investment alternative(s) to unit trusts? A. Fixed deposits B. Direct share investment C. Property D, All of the optional answers are correct 161) An Index fund is: A. Listed as one of the component securities in the Kuala Lumpur Stock Exchange Composite Index (KLCI) B, Actively managed by buying and selling stocks upon careful and rigorous stock analysis and selection. GC. A fund that ensures returns will always be above KLCI D. A fund that has composition closely resembles that of the relevant Index such as KLCI, 20162) If the investment return is 10% per annum, marginal tax rate is 20% and inflation rate is 5% per annum, what is the effective return after tax and inflation? 3% v% 5% 2.5% pomp 163) From previous question investor hodge against inflation? clear that inflation can erode one’s purchasing power. How can an Cut down all the unnecessary expenses and keep the money at home. Lower the tax rate of investment Invest the money in an instrument that can generate higher return than the inflation rate None of the optional answer Is correct. pomp 2LAnswers — as at July 2014 1.8 31.8 6A 1A 121.8 151.0 2A 32. D 62.8 92.8 1220 192.0 2c) 33, A 63.4 93.0 123.8 153.0 4A 34, D 64.8 94.8 124.¢ 164.c 5B 36. ¢ 66.4 95.6 125.¢ 485.0 6D 36. D 66.0 96.c 126.¢ 166.0 ZA 37. A 67D 97.6 127.22 167.8 8D 38. ¢ 68.A 98.8 128.0 168.0 9D 39, C 69.¢ 99.4 129.0 159.8 10. 40. A 70.0 100.0 130.8 180.0 41.6 a. c m1. 101.8 131.0 161.0 42 42. D 72.8 102.8 132.0 162.4 13.0 43. B 73.8 103.0 133.¢ 163,c 14.8 44,8 74.D 104.0 134.0 45.8 45, B 76.8 108.c 135.8 16.8 48. C 76. 108.c 136.8 17.8 47. B TTA 107.¢ BTA 18.8 48. D 73.8 108.0 138.¢ 19.8 49, ¢ 79.D 109.8 139.¢ 20.8 50. D 80.0 110.4 140.8 21.0 61. A 81.D 111.0 141.4 22.8 52. A 82.0 112.8 142.0 23.6 53, C 83.8 113.0 143.0 24.6 54. D 8A 114.4 144.0 25.8 55. c 85.0 115.4 145.0 28. 56. D 86.0 116.8 146.c 27. 87. C 87.0 17.6 147.8 28.8 58. D 88.4 118.0 148.0, 29.8 69. c 99.8 119.6 149.4 30.D 60. A 90.0 120.0 150.¢