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 Products
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Unique features of Avenue’s products and services
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Single pricing (with entry fee)
‘SINGLE PRICING’ DEFINED.
It is the pricing method whereby selling of units by the Management Company (i.e. when you purchase units and invests in the funds) and redemption of units by the Management Company (i.e. when you redeem your units and liquidate your investments) will be carried out at NAV per unit (the actual value of a unit). The entry/exit fee (if any) would be computed separately based on your net investment/liquidation amount and separate from the price per unit. With ‘single pricing’, you invest and liquidate at one price - NAV per unit (i.e. there is no spread between selling price and buying price).
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This method is less frequently practiced in the industry although the Management of Avenue Invest Berhad has adopted this practice since its establishment in September 1999 (in line with the international trend). The maximum entry fee levied is 3.5% of your net investment amount.
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In this pricing methodology, investments and liquidations in unit trust funds are made at NAV per unit. Hence, at the point of investment, you can readily determine the maximum charge you would incur. The charge is clearly stated in your confirmation of investment (separate from your net investment sum) which is sent to investor within a week.
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Illustration of Single Pricing: Assuming that you are looking to invest RM100,000 in a single pricing fund and the maximum entry fee levied is 3.5% of net investment amount (total payment RM103,500).
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At the point of investment,
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Your net investment amount
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= RM 100,000
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The maximum entry fee levied
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= RM 100,000 X 3.5%
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= RM 3,500
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Assuming that the NAV per unit at the end of the day is RM0.4165
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Number of units purchased if the NAV per unit closed at RM0.4165 on that day
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= RM 100,000/RM0.4165
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= 240,096.04 units
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IS THERE ANOTHER PRICING METHOD?
Yes, there is another pricing method that is currently practiced in the local unit trust industry, the dual pricing methodology.
WHAT IS DUAL PRICING?
It is a more generally practiced method, which is also sometimes referred to as the ‘dual pricing’ method. You invest at the selling price and you liquidate your investment at the buying price. The selling/buying prices are computed by adding the sales/redemption charges to the NAV per unit (the spread). These charges are stated as a % of NAV or in some instances, as a % of the selling price itself. If the latter is applied, the total sales charge levied is actually higher than the % specified.
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The charges are usually quoted as a range between 5% to 10%. Therefore, at the point of investment, you would not be able to estimate the specific sales/redemption charge you may incur. The Management Company would decide the charge (5% to 10% in this case) at the end of the day (after your investment) without referring to you.
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The exact charges are not stated in your statement and is only be available to you when you calculate yourself by computing the spread (in %) between selling price and the actual NAV per unit, and then multiply by your investment amount. You can only compute these charges after the transactions have been completed and the relevant statements forwarded to yourself (which could be several days away).
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Illustration of Dual Pricing:
Assuming that you are investing RM103,500 with a fund which adopts the dual pricing method with the service charge ranging from 3.5% - 8% of NAV.
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At the point of investment,
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The selling price is yet unknown (forward pricing). Therefore, you will not be able to determine your net investment amount nor the maximum service charge you might incur.
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Assuming that the NAV per unit at the end of the day is RM0.4165
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Further, assuming that the service charge set for that day is 3.5% (this could vary at the discretion of the manager), the selling price per unit
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= RM 0.4165 * (103.5%)
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= RM 0.4311 (rounding-up)
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Number of units purchased at the selling price of RM 0.4311
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= RM 103,500/RM0.4311
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= 240,083.51 units
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If the service charge set for that day is 8% (at the discretion of the manager), the selling price per unit
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= RM 0.4165 * (108%)
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= RM 0.4499 (rounding-up)
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Number of units purchased at the selling price of RM 0.4499
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= RM 103,500/RM0.4499
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= 230,051.12 units
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THESE ILLUSTRATIONS DEMONSTRATE –
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The single pricing method allows the investor to know with certainty his net investment amount as well as his maximum initial cost even before he commits his monies to the fund.
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This privileged certainty is not apparent in the dual pricing methodology. All the investor would know is that a portion of his RM103,500 will be deducted as initial charge and whatever remains will be invested in the fund.
Hence, Avenue believes that the single pricing method is more transparent and simple.
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Competitive and simple entry fee
Timely and efficient service at competitive and fair cost is the service philosophy driving Avenue Invest Berhad. Presently, the company charges a maximum entry fee of 3.5%, with rebates (in units) frequently available to loyal investors.
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Deal direct
In its commitment to bring personalised investor care and attention to its clients, Avenue Invest Berhad has made a unique stance to offer its funds and investment expertise predominantly through its full-time salaried employees and not through third party distributors or mass agency force. As salaried employees of the company, the service personnel are focused on enhancing the high value clients’ total investment experience with Avenue Invest Berhad over a long term period.
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Regular all-in-one statement/ report
Details of the initial and additional investments plus the value of your unitholdings are clearly set out in our regular all-in-one statement/report. These detailed updates are designed to provide you with necessary information to better monitor your long-term investment goals. Avenue's OneINVEST accountholders will receive their portfolio statement on a monthly basis.
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