COMPARATIVE
ANALYSIS
NOT JUST ANOTHER UNIT TRUST!
Why is the APS ALPHA FUND so different?
REGULAR UNIT TRUSTS
Regular Unit Trusts charge up to 4% in annual fees.
These include annual management fees and other expenses.
In the table below (Table 1.), we portray the fees
charged by regular unit trusts for different levels
of positive and negative returns.
INITIAL INVESTMENT
|
$100 |
$100 |
$100 |
$100 |
$100 |
$100 |
$100 |
| RETURNS |
-15% |
-10% |
-5% |
0% |
5% |
10% |
15% |
| FEES (FIXED) |
-$4 |
-$4 |
-$4 |
-$4 |
-$4 |
-$4 |
-$4 |
| NET RETURNS |
-$19 |
-$14 |
-$9 |
-$4 |
$1 |
$6 |
$11 |
| END VALUE |
$81 |
$86 |
$91 |
$96 |
$101 |
$106 |
$111 |
Table 1.
*
This is a hypothetical example and is only
for illustrative purposes. Simulated performance
is not a guide to future performance.
Fees are charged at a fixed rate, regardless
of the fund’s performance. Given that the
average return on investment for Asia Pacific
ex-Japan Equity Unit Trusts offered in Singapore
over the last 8 years has been –16.93%
(Source: Standard & Poor’s Investment
Services), investors often ended up paying high
fees even when they incurred losses.
APS ALPHA FUND
The APS Alpha Fund charges a 25%1 performance fee
on profits only if the fund’s
returns exceed 6% in any one calendar year in annualized terms.
No other fees are charged. In Table 2, we portray
the fees charged by the APS ALPHA FUND for the
same levels of positive and negative returns shown
in Table 1.
INITIAL INVESTMENT
|
$100 |
$100 |
$100 |
$100 |
$100 |
$100 |
$100 |
| RETURNS |
-15% |
-10% |
-5% |
0% |
5% |
10% |
15% |
| FEES |
$0 |
$0 |
$0 |
$0 |
$0 |
-$2.50 |
-$3.75 |
| NET RETURNS |
-$15 |
-$10 |
-$5 |
$0 |
$5 |
$7.50 |
$11.25 |
| END VALUE |
$85 |
$90 |
$95 |
$100 |
$105 |
$107.50 |
$111.25 |
Table 2.
1 The applicable rate in 2003 is 30%.
* This is a hypothetical example and is only
for illustrative purposes. Simulated performance
is not a guide to future performance.
With the APS ALPHA FUND you only pay a performance fee when your annualised returns exceed 6% in any one calendar year. For annualised returns of 6% or below, no fees are charged.
Disclaimer
The above is strictly for information purposes only and should not be construed as an offer or solicitation to deal in the securities/investments mentioned herein. Unless stated otherwise, any opinions expressed are based on our internal forecasts and should not be relied upon as indicating any guarantee of return from an investment in our products.
Past performance of the Fund and the Manager and any forecasts made are not necessarily indicative of future or likely performance of the Fund or the Manager. Investors may wish to seek advice from a financial advisor before making a commitment to purchase the Fund. In the event that the investor chooses not to seek advice from a financial advisor, he should consider whether the Fund in question is suitable for him. We have made every effort to ensure that the information provided herein is accurate. Please note, however, that some data has been derived from sources that we believe to be reliable but its correctness is not guaranteed. Investments in unit trusts are not obligations of, deposits in, guaranteed or insured by APS Asset Management Pte Ltd (the "Manager") and are subject to investment risks, including the possible loss of principal amount invested. Investors should refer to the prospectus for a full disclosure of all risk factors. All applications for units in the Fund must be made on the application form accompanying the prospectus. Investors may obtain a copy of the prospectus from the Manager or any of its appointed distributors. Investors should read the prospectus before deciding to purchase units in the Fund. The value of the units and the income derived from them may fall as well as rise.
Regular
Unit Trust