1. What is a multi-class fund?
  A multi-class fund is a unit trust fund which offers more than one class of units where each class of units may differ based on features such as the fees and charges imposed and the currency in which each class of units is denominated. All classes of units in a multi-class fund will invest in the same investment portfolio of securities and share the same investment objective and policy.
2. What is the rationale for introducing multi-class funds?
  To provide a unit trust fund the flexibility to be offered with different features such as tailored fee structures for different investor groups. For example, different sales charge and/or recurrent fees (such as the annual management fee) can be introduced. A multi-class fund may also offer classes of units denominated in different currencies to allow investors holding foreign currencies to invest directly into a fund as opposed to converting their investment sum into the fund’s base currency. A multi-class fund can also be established on other bases of differentiation provided there are sufficient disclosures about the features of each class.
3. As a potential investor, how do I get more information about multi-class funds and whether they meet my investment needs?
  You may refer to the prospectus and deed of the fund for further information.
4. Can any management company establish a multi-class fund?
  The management company must have the capability and capacity to manage and administer a fund with multiple classes of units. Where the management company is proposing to establish such a fund for the first time, the SC may grant approval subject to the condition that an independent operational audit be carried out within 6 months from the date of approval to ascertain the adequacy of resources and processes in place to manage and administer such a fund.
5. I am a fund manager of ABC Fund which is a single-class fund. Can I issue new class of units for this existing fund?
  You can add new classes of units to an existing fund depending on the provisions in the deed and the disclosures previously made in the prospectus. Otherwise, specific approval may be required from existing unit holders. In any case, the Trustee’s approval must be obtained for the addition of new classes of units to an existing fund. You should seek independent legal counsel to advise you on how your business operations should be conducted to satisfy the legal/regulatory requirements and to advise you on all applicable laws, rules, and regulations.
6. I am a unit holder of XYZ Fund which is a single-class fund. Recently, the Fund’s manager proposed to issue a new class of units in the Fund. Will this affect me in any way?
  No. Existing unit holders should not be affected in any way. An introduction of a new class of units should not prejudice the interests of unit holders of any other class. However, depending on the provisions in the deed and the disclosures previously made in the prospectus, such proposal may, or may not require existing unit holders’ approval.
7. What changes have been made to the Guidelines on Unit Trust Funds?
  To facilitate the offering of multi-class funds, the following sections of the Guidelines on Unit Trust Funds have been amended:

  • Definitions;
  • Constitution of the fund;
  • Dealing, valuation and pricing;
  • Operational matters;
  • Applications, notifications and reporting to the Securities Commission;
  • Schedule C: Deed of a unit trust fund;
  • Schedule D: Contents of a fund’s report;
  • Schedule E: Submission of applications for approval/registration; and
  • Schedule E: Notification and submission of documents.
8. What changes have been made to the Prospectus Guidelines for Collective Investment Schemes?
  The following sections of the Prospectus Guidelines for Collective Investment Schemes have been amended:

  • General;
  • Key data/Information summary; and
  • Salient terms of deed.