Standard Chartered Unit Trust, A unit trust (or fund) is made up of money pooled from multiple investors and invested in a variety of assets to meet an investment objective*. Investors own units (or shares) which represent a part of the unit trust’s portfolio holdings. A fund can invest in securities such as stocks, bonds and/or other instruments. In Singapore, a unit trust may also be referred to as a collective investment scheme (CIS)
Unit trusts give you affordable access to a wide variety of assets to match your risk profile and financial goals
Risks
Knowing the investment risks associated with each investment is important. When you invest in a unit trust, you should receive a factsheet and prospectus which details the risks involved. Some examples are (non-exhaustive):
Investment Risk – As with any investment, your investment value and dividends may go up, down or even be completely lost in extreme cases.
Foreign Exchange Risk – You should be aware that your investments can be negatively affected by foreign exchange risk if you hold unit trusts/ funds that invest in assets denominated in foreign currencies.
Potential Risks of Hedge Funds or Alternative Funds – These funds differ from traditional unit trusts in that they can undertake more risky investment strategies than traditional fund managers e.g. they may borrow to invest which can magnify potential losses.
Potential Risks of Derivatives (if applicable) – Unit trusts which invest in derivatives may have higher volatility. An investment in derivatives may result in losses that are greater than the principal amount invested. Derivatives are also subject to a number of risks including but not limited to liquidity, interest rate, market, counterparty and credit risk. It is important that you fully understand the nature and risk exposure before investing in derivatives.
Fees and Charges
Sales Charges
These are charges which are deducted from the subscription amount and paid to the distributor.
Switching Fees
Some unit trusts providers allow investors to switch internally to another unit trust from the same umbrella and a switching fee of approximately 1% will apply.
Recurring Fees
Annual management fees and other administrative fees will be charged by the fund house. While you do not pay these fees out of your own pocket, they are paid for by the unit trust and incorporated into the fund price, which will reduce the return that you get.
Please contact your dedicated Relationship Manager.
Disclaimers
Additional disclaimers relating to unit trusts:
You should read the relevant prospectus before deciding whether to invest in a unit trust. Investments in unit trusts are not obligations of, deposits in, or guaranteed by, Standard Chartered Bank (Singapore) Limited or its affiliates. Unit Trusts are not available to US persons.
The contents on this webpage are for general information only and does not constitute an offer, recommendation or solicitation of an offer to enter into a transaction or adopt any hedging, trading or investment strategy, nor does it constitute any prediction of likely future movements in rates or prices or any representation that any such future movements will not exceed those shown in any illustration.
It has not been prepared for any particular person or class of persons and it has been prepared without regards to the specific investment objectives, financial situation or particular needs of any person. You should seek advice from a financial adviser on the suitability of the product for you, taking into account these factors before making a commitment to purchase the product.
In the event that you choose not to seek advice from a licensed or an exempt financial adviser, you should carefully consider whether this product is suitable for you. You are fully responsible for your investment decision, including whether the product or service described here is suitable for you. The products / services involved are not principal-protected and you may lose all or part of your original investment amount. SCB will not accept any responsibility or liability of any kind, with respect to the accuracy or completeness of the information in this webpage. The contents herein are for general evaluation only and has not been prepared to be suitable for any particular person or class of persons.
SCB makes no representation or warranty of any kind, express, implied or statutory regarding the contents on this webpage or any information contained or referred to herein. This webpage is distributed on the express understanding that, whilst the information in it is believed to be reliable, it has not been independently verified by us. Singapore dollar deposits of non-bank depositors are insured by the Singapore Deposit Insurance Corporation, for up to S$50,000 in aggregate per depositor per Scheme member by law.
Foreign currency deposits, dual currency investments, structured deposits and other investment products are not insured. For clarity, this is not a deposit and does not qualify as an insured deposit under the Singapore Deposit Insurance and Policy Owners’ Protection Schemes Act 2011.