1. Sales Charge

The normal sales charge for most equity funds are 5% and those for bond funds are typically 3%. However, at Fundsupermart.com (FSM), the advantage is that most equity funds are sold at around 1% sales charge, and bond funds are sold at only around 0% to 0.5% sales charge . The FSM sales charge is applied at purchase. There is no FSM sales charge when you sell.

We do have a sub-portal called WISE and all bond funds under this portal are 0%. Please click here to find more.

2. Annual Expenses of the fund

The annual expense of the fund is what is charged to the fund by the fund manager. This includes the fund manager's annual management fee, and other administrative fees that are incurred in the running of the fund. You do not have to pay out-of-pocket for these fees. The fund manager will simply take it out of the value of the fund. Expense ratios can range from 0.5% to 6%.

3. Quarterly Platform Fee

This is an ongoing fee to be charged on your holdings to accommodate the ongoing transactional and operational expenses at our platform. It is accrued daily based on the value of your Cash / SRS holdings and deducted quarterly.

To find out more about Platform Fee, click here

The FSM sales charge is applied at purchase and deducted from your investment amount. There is no sales charge imposed when you sell.

The Offer Price is the price at which you buy an investment (the fund manager "offers" to sell you the units at this price).

The Net Asset Value (NAV) is the market value of a unit trust's total assets, minus liabilities, divided by the number of units or shares outstanding. So it is the price per unit of the fund. This value is used to determine the prices for buying and selling units.

Note: Most of the funds available on FSM are using NAV (single) pricing method. It will be used to determine the buying and selling price. For buy orders, FSM sales charge will be deducted from your investment amount. The net investment amount will be used to buy at the NAV price of the transaction date.

(1) NAV Priced Funds

Example :

• NAV price : $0.95
• Normal sales charge : 5%
• Fundsupermart sales charge : 1%
• Investment Amount : $10,000

If you invest $10,000 into the fund at the normal sales charge of 5%, you will receive 10,000 units.

Units = Investment Amount (100% - sales charge)/NAV price
= $10,000 (100% - 5%)/ $0.95
= 10,000.00 units

Buy at 1% Fundsupermart sales charge

If you invest $10,000 into the fund at the lower sales charge of 1%, you will receive 10413.68 units.

Units = Net Investment Amount /NAV price
 = $10,000 - ($10,000 x 1% + 7% GST)/ $0.95
= $9893/ $0.95
  = 10413.68 units

You can now view your daily invoices under My Investments > View Daily Invoices .

(2) Bid/Offer Priced Funds

Example :

Bid price : $0.95

• Offer price : $1.00
• Normal sales charge : 5%
• Fundsupermart sales charge : 1%
• Upfront fees (in $): $10,000 X 1.5%=$125
• Net Investment Amount:$ 10,000-$125=$9875

If you invest $10,000 into the fund at the normal sales charge of 5%, you will receive 10,000 units.

Units = Investment Amount / Bid Price
= $9,500 / $0.95
= 10,000.00 units

Buy at 1% Fundsupermart sales charge

If you invest $10,000 into the fund at the lower sales charge of 1%, you will receive 10413.68 units.

Units = Net Investment Amount / Bid Price
= $9893/ $0.95
= 10413.68 units

Example 1: Upon up front sales charge

Investment amount: S$1000
Sales Charge: 1%
GST: 7%

Net investment amount
= S$1000 – (S$1000 x 1% + 7% GST)
= S$1000 – (S$10 + 7% GST)
= S$1000 – S$10.70
= S$989.30

Example 2: Upon platform fee deduction

Average AUM for Equity funds: S$50K
Quarterly platform fee = S$50K x 0.125% = S$62.50
GST = S$62.50 x 7% = S$4.375

Calculation of WAC is gross amount invested divided by the number of units. As the gross amount takes into consideration the sales charges that you pay when you purchase the fund, hence the WAC will be higher than buying price.

For cash investments, dividends declared by any funds shall either be

1) Reinvestment: By default， the dividends will be reinvested in the form of additional units in your relevant holding； or

2) Payout via cheque: The dividend will be issued in the form of SGD denominated cheque and credit into your designated bank account, or mail to you if you do not have a local bank account, if the relevant fund's terms and conditions specify or permit the payout of dividends.

For 1), you will see additional units in your fund holdings. They will be reflected under your historical transactions as a purchase. You will also receive an online statement via email with regards to the transaction. With effect from Jan 07, all dividend reinvestment will not result in an increase in the cost of investment. The rationale for doing so is that dividend is not an injection of new monies by the investors as such it should not increase the cost of investment. By not reducing the cost, the weighted average cost as a result decreases with every dividend reinvestment.

Dividends declared for CPF-OA / CPF-SA / SRS investments under Non-IA status shall be credited into the account holder's respective CPF-OA / CPF-SA / SRS account, by default. In cases where the relevant fund's terms and conditions specify or permit the re-investment of dividends, dividends declared shall be re-invested into the relevant fund.

Dividends declared for CPF-OA / CPF-SA / SRS investments under IA status shall be re-invested into the relevant fund, by default. In cases where the relevant fund's terms and conditions specify or permit the payout of dividends, dividends declared shall be credited into the account holder's respective CPF-OA / CPF-SA / SRS account.

This statement has been made known in FSM website under its FAQ and Clause 6.12 of the iFAST FINANCIAL PTE.LTD TERMS AND CONDITIONS FOR SECURITIES ACCOUNT.

Generally, the dividends from unit trusts bought using cash are automatically reinvested into the same funds, and there is no withdrawing of dividends except for certain funds such as the following funds which have explicit dividend payout mechanics:

Below is a list of Cash-Invested Funds with Dividend payout method as of February 2013:

- Aberdeen Asian Local CCY SD Bond
- Aberdeen EM Local CY Bond
- AB Glb High Yield-AT SGD-H
- AB Glb High Yield-AT USD & AUD-H
- Allianz US High Yield AM Dis H2-SGD
- Allianz US High Yield AM H2-AUD
- AllianzGI RCM Glb High Payout(SGD & USD)
- Allianz US High Yield AM H2-GBP
- Amundi Bonus Builder Fund
- AVIVA Inv Glb HY Bd Fd AXH SGD
- Eastspring Investments MIP M (previous known as Pru Monthly Income Plan Cl(M))
- Eastspring Inv Asian HY Bd SGD ASDM (H)
- Eastspring Inv Asian Property Sec SGD ASDQ
- Eastspring Investment Asian Equity Income fund Cl ASDQ
- Eastspring Inv US Corp Bd SGD ASDM (H)
- Fidelity Asian Bond A-MDIST SGD H
- Fidelity Asian Bond A-MDIST USD
- Fidelity Asian HY AMDIST SGD-Hedged
- Fidelity Eur HY AMDIST EUR
- Fidelity Eur HY EUR
- Fidelity US HY AMDIST USD
- First State Dividend Advantage Fund
- Fullerton SGD Income Fd CI B SGD
- Henderson Glb Prop Eq Fund
- LionGlobal Multi Income
- LionGlobal SGD Income Plus Fund
- Nikko AM Shenton Glb Prop Sec FD (S$)
- Nikko AM Shenton HIF Singapore Div Eqty (formerly known as Singapore Dividend Equity fund)
- PIMCO Glb Bond Cl E Inc GBP Hed
- PIMCO Glb Inv Gr Credit Cl E Inc GBP Hed
- Schroder Asian Income Fund SGD
- Schroder Asian Income AUD-H fund
- Schroder Global EM MKT Opps Fund SGD
- Schroder Global High Yield Fund
- Schroder ISF Asian Total Ret A Dis SGD
- Schroder ISF EM Debt Ab Rt A Dis SGD-Hedged
- Schroder ISF Gb Div Max A DIS SGD
- Schroder ISF Glb Co Bnd SGD Hedge
- Threadneedle (Lux) US$ High Inc Bd AUP USD
- United Commodities Plus Fund
- United Emerging Markets Bond Fund
- United Enhanced Income
- United Global Real Estate Sec Fund

Dividend by ‘Payout’ method:

Please go to My Account > View Holdings. After that, click on ‘Analyze My Portfolio’ button. At this page, please click on ‘+Cash Dividend Payout (SGD)’ in a blue color link and you will be able to view the dividend payout records under your FSM account.

Dividend by ‘Reinvestment’ method:

Please go to My Account > View Holdings. After that, click on ‘Historical Transactions’ button and you will be able to view the dividend payout that had been reinvested in units under your FSM account under 'Remarks' column.

Reinvestment units = Dividend amount/ Reinvest price

Note: Both dividend rate and reinvestment price are determined by the fund managers.Historical records of dividends declared can be viewed under the ‘Fund Info’ section on the fund factsheets.

* Please note that there some exceptional funds with 1 or 2 days lag time for the buy orders to be transacted.

As the annual management charge is part of the annual expense ratio, you do not need to fork out extra for this charge as it will be deducted from the daily NAV price.

Note: There will be no pricing/trading on Singapore Public Holidays and Fund Holidays declared by individual fund managers. Pricing/ trading of the funds will be resumed on the following business day.