Untitled Document
Enjoy Lower Switching Charges!
Dear Investors,
We believe that rebalancing can play a very important part to being a successful investor in the long run. Starting from 1st July 2006, we are lowering our switching sales charge to just 0.75%! And from 1st November 2006 onwards, the switching sales charge will be free for the first 15 switches each year.
SUMMARY OF LOWERED FUND HOUSE SWITCHING SALES CHARGES FROM 1st JULY 2006
Switch Sell |
Switch Buy |
Switching Sales Charge |
Any non-money market fund |
Any non-money market fund |
0.75% |
Money Market (or any fund at 0% sales charge) |
Any fund
(prevailing sales charge) |
Prevailing sales charge
(Silver and Gold status applies) |
Any non-money market fund |
Money Market (or any fund at 0% sales charge) |
0% |
SUMMARY OF LOWERED FUND HOUSE SWITCHING SALES CHARGES FROM 1st NOVEMBER 2006
Switch Sell |
Switch Buy |
Switching Sales Charge |
Money Market (or any fund at 0% sales charge) |
Any fund
(prevailing sales charge) |
Prevailing sales charge
(Silver and Gold status applies) |
Lower tier fund
(1.0% to 1.5% sales charge) |
Higher tier fund
(1.75% to 2.25% sales charge) |
0.75% |
All other situations of switching besides the above two situations. |
0% for the first 15 switches each calendar year, and 0.75% thereafter. |
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Please note for intra fund house switches, the switching sales charge applied will be the lower of the intra-fund house switching sales charge or the new switching sales charges.
Our FSM rewards programme still applies to those who qualify for them. So, in the case of a silver investor who is switching from a money market fund to an equity fund with a sales charge of 2.25%, the sales charge applicable would instead be 2.0%.
“Why limit this to just the first 15 switches each year come 1st November 2006?”
The reason is we believe that frequent switching does not necessarily help investor returns. Also, based on our observations, the average investor will generally not make more than 15 fund switches over the course of one year. Investors may still switch as many times as they choose each year, though after the 15th free switch, there will be a switching sales charge of 0.75%.
How can you best make use of this new feature? Find out more from our articles on rebalancing and how to implement a core and supplementary portfolio.
Wong Sui Jau
General Manager, Fundsupermart.com
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CPFIS Registered Investment Administrator
