Cooling Off Right

As a safeguard to all investors who may have purchased units without fully understanding the Unit Trust Scheme purchased, or who may have been mislead by the Person Dealing with Unit Trust, most authority has imposed upon Unit Trust Management Company an obligation to provide an investor with opportunity to reconsider his or her purchase. This is known as the "Cooling-off" right, which must be disclosed in the prospectus of Unit Trust Scheme.

The cooling-off right, to be exercised within six business days, gives a first time investor the right to a refund of his or her application money without deduction of any sales charges.

The guides lines on Unit Trust Funds stated that the refund for every unit held by the investor, pursuant to the exercise of his or her cooling-off right, shall be the sum of:

- The NAV per unit on the day the unit trust were first purchased; and
- The sales charge per unit originally imposed on the day the units were purchased.

The cooling-off right is only accorded to a first time investor other than those listed below:

- A corporation or institution;
- A staff of the Unit Trust Management Company (UTMC);
- Person Dealing with Unit Trust (PDUT)