Determination of Prices

Valuation Point

Valuation point refers to such a time(s) on a Business Day as may be decided by the Manager wherein the Net Asset Value (NAV) of a Fund is calculated.  A final valuation for each Business Day is carried out at the end of the day immediately after the closing of the Bursa Securities, i.e. forward pricing or at any such time/cut-off point as may be approved by the Security Commission. Under normal circumstances, only one valuation of the NAV of Fund is carried out on each Business Day upon closing of the Bursa Securities.

Computation of Net Asset Value

The NAV of a Fund is determined at the end of each Business Day and is the total value of all investments and cash held by the Fund including income derived by the fund which has not been distributed to Unit holders, less any amount owing or payable in respect of the fund including any provisions that the trustee or the manager considers necessary to be made, e.g. a provision on investment loss likely to occur in the future which cannot be fairly determined.

However, for the Funds, the NAV is determined at their respective valuation points (i.e. RHB Dividend Valued Equity Fund is determined at 10.30 a.m, RHB Global Fortune Fund is determined at 4.00 p.m, RHB Global Themes Fund and RHB Asian Total Return Fund are determined at 5.00 p.m, all on the immediate following Business Day).

Illustration 1: Computation of NAV and NAV per unit
The following is an illustration using hypothetical figures of a valuation carried out for RHB Dividend Valued Equity Fund at 10.30 a.m. of the Business Day of 30 June 2008.

As at 30 June 2008

RHB Dividend Valued Equity Fund:
Net Asset Value of the Fund RM76,270,000
Units in Circulation 183,640,000

Therefore, NAV/unit		RM76,270,000
		183,640,000 units
	=	RM0.4153

Basis of Determining the Repurchase and Selling Prices

The repurchase and sale transactions will be executed at prices next determined, i.e. forward pricing basis. Under the forward pricing basis:-

For the Funds, all transaction of units by an investor/Unit Holder on a Business Day, will be based on the Repurchase Price or Selling Price which are determined at their respective valuation points (i.e. RHB Dividend Valued Equity Fund is determined at 10.30 a.m, RHB Global Fortune Fund is determined at 4.00 p.m, RHB Global Themes Fund and RHB Asian Total Retrun Fund are determined at 5.00 p.m, all on the immediate following business day) , and such Repurchase Price or Selling Price will only be published in the Unit Trusts Column of the newspapers two (2) days later. 

A transaction of units of any fund by an investor/Unit Holder is considered as carried out on a particular business day only if the payment together with the completed application form and relevant supporting documents are received by the Manager not later than 4.00 pm (or such other time as the Manager may deem fit in its discretion) on that same business day. In the event the same is only received by the Manager after 4.00 pm (or such other time as the Manager may deem fit in its discretion), the transaction is considered as carried out on the immediate following business day. Any payment made on a non-business day shall be treated as payment made in the following business day.

Example on forward pricing basis in respect of RHB Dividend Valued Equity Fund:-

Notwithstanding the preceding paragraphs above, the business hours, payment cut-off time and payment system of the IUTAs are subject to the internal policies of the respective IUTAs. The Manager must reprice the units if the NAV per unit of the Fund, if revalued, differ by more than 5% from the last valuation point.

Unit Pricing and The Single Pricing Regime

The Securities Commission has implemented the single pricing regime (“SPR”) effective 1 July 2007to provide greater clarity on the cost to be incurred by the investors for the investment made in the unit trust schemes.

Under the SPR, both the Repurchase Price and the Selling Price should be the NAV per unit of the Fund as at the next valuation point following an application to purchase or request for repurchase of units of the Fund is received by the Manager. The Repurchase Charge and Sales Charge are calculated and charged separately. The SPR will provide greater transparency to the investors on the charges imposed by the Manager and each distribution channels such as tied agents and IUTAs.

Illustration 2: Computation of amount payable and units to be received by an investor in purchasing units of the Funds

An investor wishes to invest RM10,000.00 in Fund A (with NAV per unit of RM1.00), will be informed that there will be a Sales Charge of 5% of NAV per unit imposed by the Manager in addition to the amount invested.

Therefore,
The total amount payable by the investor will be calculated as follows:
Amount of Investment RM10,000.00 Plus: Sales Charge @ 5% of NAV per Unit (i.e. RM10,000 x 5%) RM 500.00 Total amount payable by investor RM10,500.00

The Units of the Fund to be issued to the investor will be calculated as follows:

Illustration 3: Computation of repurchase proceeds to be received by the Unitholder in sale/redemption of units of the Funds

An investor wishes to redeem 10,000.00 units in Fund A (with NAV per unit of RM1.00). There is no Repurchase Charge imposed by the Manager for sale/redemption of units by unit holders. Units are repurchased by the Manager at NAV per unit, which is the Repurchase Price.

Therefore:

©2002, RHB Capital Berhad
Disclaimer and Indemnity