Set 2 — Chapters 1–3 (FIMM-FCE Mock Examination)

Which of the following statement is true?

• Real Estate Investment Trust is a type of unlisted fund

• An investment linked fund is similar to UTS

• CIS enables investors to pool their money and hand it to a professional fund management company to invest the money in various assets that meet the investors investment objectives.

• A Management Company must not outsource any of its functions

A 'collective investment scheme' (CIS) is ____________. I. a generic term for a range of pooled investment vehicles available to investors II. where a number of investors with similar investment objectives pool their savings and entrust it to a professional fund manager who manages and invests the pool of money in a range of assets or investment instruments to produce a return that is shared by those investors III. also known as a mutual fund in other countries IV. a method to acquire units from an existing unit holder

• II and III

• I only

• I, II and III

• All of the above

_____ includes the following: I. An individual whose total net personal assets, or total net joint assets with his or her spouse, exceeding three million ringgit or its equivalent in foreign currencies, excluding the value of the individual's primary residence II. A corporation with total net assets exceeding ten million ringgit or its equivalent in foreign currencies based on the last audited accounts.

• Sophisticated Investors

• Premium investors

• Angel Investors

• Wealthy Investors

UTMC Bestari appointed RST Berhad to undertake fund accounting and administration functions for funds managed by UTMC Bestari. Which of the followings are most likely to be RST Berhad functions? I. Performing valuation of the funds' investments II. Preparing the funds' financial statements III. Maintaining unit holders' records and details IV. Dealing with the auditor on the fund's financial statements

• All of the above

• I and III

• I, II and IV

• II and IV

The role involves maintaining unit holders' records and recording subscriptions and redemptions of the fund's units.

• Fund Accounting

• Transfer Agency

• Fund Administration

• Investment Management

An investment-linked fund is __________. I. Managed and promoted by a unit trust management company II. Offered with a life insurance policy III. Purchased with a single premium (lump sum investment) or with regular premium payments IV. Required to comply with BNM's rules and regulations

• II, III and IV

• I and IV

• I, II, III and IV

• II and III

Consultants must ensure that an investor in a Scheme is given

• a guarantee on future earnings of the fund

• an explanation of risks involved

• gifts upon signing up

• the right to cancel their investment at any time

Which of the following statements on exchange traded funds (ETFs) is FALSE?

• The underlying index tracked by an ETFs must be transparent and conveniently accessible by investors

• ETFs must be an unlisted fund

• ETFs offer diversification and reduces risk involved in owning a single stock

• ETFs track or replicate the performance of an index, a commodity or a basket of assets

Which of the following statements are TRUE? I. UTS/PRS investors do not purchase the securities in the portfolio directly. II. Ownership of the portfolio in a UTS is divided into units of entitlement and each investor is known as a "unit holder". III. Investments within the UTS/PRS portfolio can increase or decrease in value, as such the value or "unit price' of each unit increases or decreases accordingly. IV. UTS/PRS investors are beneficiaries under a trust set up by the UTMC/PRS Providers.

• I and IV

• All of the above

• I, II and IV

• I, II and III

Fund XYZ reported the following information as at 31 Dec 202x: Gross assets: RM500,000 Net assets: RM490,000 Number of units in circulation: 100,000 What is the unit price for Fund XYZ?

• RM1.00

• RM0.10

• RM4.90

• RM5.00