4.8 Reporting to Investors: Confirmations, Statements, and Semi-Annual and Annual Reports

FIMM Combined Examination FCE

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1 Introduction: The FIMM Combined Examination (FCE)

0.1 FCE Exam Facts, Registration Rules and How to Use This Guide

2 Chapter 1: Understanding Collective Investment Schemes in Malaysia

1.1 What a Collective Investment Scheme Is and How Malaysian CIS Are Classified 1.2 Investment-Linked Funds Are Not UTS; Industry Growth and History 1.3 Participants in the CIS Ecosystem: Unit Holders, Managers, Trustees, Distributors and Regulators

3 Chapter 2: Introduction to UTS and PRS

2.1 UTS and PRS as Investments: Mechanics, Unit Calculations and How They Compare 2.2 Types of Funds: By Asset Class, Fund Structure and Investment Objective 2.3 Methods of Investing and Dollar Cost Averaging 2.4 Benefits and Disadvantages of Investing in UTS and PRS 2.5 Understanding Risk and the Risks of Investing in Schemes 2.6 Shariah-Compliant Schemes, Their Risks and the Role of the Shariah Advisory Council

4 Chapter 3: Regulatory Framework

3.1 The Regulatory Framework: The SC, Other Regulators and FIMM's Dual Role 3.2 Legislation, SC Guidelines and FIMM Rules Governing UTS and PRS 3.3 Regulation of Scheme Providers and Oversight Functions 3.4 The Deed, the Prospectus or Disclosure Document, and the Product Highlights Sheet 3.5 Portfolio Constraints: Permitted Investments, Liquidity, Borrowing and Exposure Limits 3.6 Regulations for Other CIS: Real Estate Investment Trusts and Exchange-Traded Funds 3.7 Regulation and Duties of the Scheme Trustee 3.8 Regulation of Marketing and Distribution: Distributor Categories, Collection Points and Agency Structure 3.9 Registration of Consultants: Eligibility, Fit and Proper, Duration, Variation and Revocation

5 Chapter 4 (Part 1): Marketing and Distribution — Disclosure and Transactions

4.1 Servicing Investors and the Contents of the Prospectus and Disclosure Document 4.2 The Product Highlights Sheet, Advertising Standards and Account Maintenance 4.3 The Purchase Process and Suitability Assessment Before Personal Advice 4.4 Cooling-Off Rights, Repurchase of Units, Suspension and Switching 4.5 Financing the Purchase of UTS: Process, Safeguards and the Risk Disclosure Statement 4.6 EPF Transfers and Withdrawals for Investment in Approved Unit Trust Funds

6 Chapter 4 (Part 2): Marketing and Distribution — Distributions, Reporting and Service

4.7 Distributable Income, Distributions and NAV, "Buying" a Distribution and Taxation 4.8 Reporting to Investors: Confirmations, Statements, and Semi-Annual and Annual Reports 4.9 Marketing Principles, Delivering Quality Service and Handling Complaints 4.10 The Effect of Inflation, Taxation and Investment Costs on Returns 4.11 Investment Alternatives to UTS and PRS

7 Chapter 5: Code of Ethics

5.1 Compliance, Ethics and the Structure of the FIMM Code of Ethics 5.2 Core Principle 1: Honesty and Integrity 5.3 Core Principle 2: Professionalism 5.4 Core Principles 3 to 5 and Non-Compliance: Conflicts, Disclosure, Confidentiality and Misconduct

8 Chapter 6: Personal Financial Planning

6.1 Personal Financial Planning: Definition, Features, Five Areas and the Six Steps 6.2 Financial Planner Credentials, Skills, Remuneration, and How a Planner Differs from a Consultant 6.3 The Consultant's Role in Investment Planning and Advising Clients Through the Life Cycle

9 Chapter 7A: Features and Operations of UTS

7A.1 Structure of a UTS, the Trust Deed, the Parties and Modifying the Deed 7A.2 UTS Fees, Charges and Expenses, and the Management Expense Ratio 7A.3 Dealing in Units, Valuation, NAV Calculation and Unit Prices 7A.4 Forward and Historical Pricing, and the UTMC's Holding of Units 7A.5 Unit Splits, Distributions and Their Effect on NAV 7A.6 Measuring UTS Performance: Returns, Performance Tables, Risk Measures and Qualitative Factors 7A.7 Operational Aspects of Shariah-Compliant UTS and PRS and the Shariah Contracts Between the Parties 7A.8 Borrowing to Invest in UTS and the Risks of Loan Financing

10 Chapter 7B (Part 1): The Pension Landscape and the PRS Framework

7B.1 The Malaysian Pension Landscape and the Adequacy of Retirement Savings 7B.2 The World Bank's Five-Pillar Pension Framework in the Malaysian Context 7B.3 Key Players: EPF, KWAP, LTAT, Employer-Sponsored Schemes and Annuities 7B.4 Why Malaysia Needs PRS: Ageing, Longevity Risk and the Benefits of PRS 7B.5 The PRS Framework and the Private Pension Administrator (PPA) 7B.6 PRS Structure, the Trust and Deed, Advantages over Other Products, Eligibility and Contributions

11 Chapter 7B (Part 2): PRS Operations

7B.7 The PRS Default Option and Tax Incentives for Members and Employers 7B.8 The PRS Account Structure (Sub-Accounts A and B) and Vesting 7B.9 PRS Withdrawals: Pre-Retirement, Retirement, Permanent Departure, Incapacity and Death 7B.10 Switching Between Funds and Transferring Between PRS Providers (Portability) 7B.11 Unclaimed Monies, Death of a Member and PRS Nomination 7B.12 PRS Funds: Number, Core and Non-Core Funds, Objectives, Risk Profiles, Asset Classes, Authorisation and Naming 7B.13 PRS Fees, Charges and Expenses 7B.14 PRS Unit Creation, Forward Pricing, Valuation, Distributions, Performance Measurement and Electronic Communication

4.8 Reporting to Investors: Confirmations, Statements, and Semi-Annual and Annual Reports

Key Takeaways Explain This Topic AI

On purchase, investors receive confirmation of the amount received, the units allotted and the NAV per unit, and the initial service charge in both percentage and ringgit terms.

Each scheme must publish a semi-annual and an annual report for each financial year and send them to investors within two months of the end of the period.

The annual report's performance section includes a comparative table for the last three financial years covering NAV, units in circulation, distributions, total expense ratio and portfolio turnover ratio.

The annual report must show average total returns over one, three and five years and annual total returns for each of the last five financial years.

The manager's report must state whether soft commissions were received and whether cross trades were carried out and reviewed by the oversight function.

Last updated: October 2026

Why Reporting Matters

Keeping investors informed is a core part of service. Each provider has its own processes and timing, but the study guide describes what investors generally receive.

On Buying Units

Confirmation Detail
Money received Confirmation the application amount has arrived
Units allotted Number of units and the NAV per unit on the allotment date
Charges The initial service charge as a percentage and in ringgit , and the net amount invested
Evidence of ownership A statement (certificates are now uncommon)
While Units Are Held

Providers commonly send periodic statements (quarterly, half-yearly or annually) showing units held and their value, often with a performance update.

The UTF and PRS Guidelines require at least two reports per financial year : a semi-annual and an annual report, each sent within two months of the end of the period. Discussing these reports with investors is an excellent way to provide service and to check that the investment still meets their objectives.

The Annual Report

Part Main contents
Fund information Name, type and category; objective; benchmark; distribution policy

Fund performance Comparative table for the last three financial years (or since launch): portfolio composition; fund NAV; NAV per unit and units in circulation; highest and lowest NAV per unit; total return split into capital growth and income; distribution per unit; total expense ratio ; portfolio turnover ratio

Average total return over 1, 3 and 5 years (or since launch) and annual total return for each of the last 5 financial years

Warning that past performance is not necessarily indicative of future performance and that prices and returns may go down as well as up

Manager's report Operational review; 5-year performance (graphical); comparison with the benchmark; analysis of performance using NAV adjusted for distributions; changes in portfolio composition; whether soft commissions were received; whether cross trades occurred and were reviewed by the oversight function as being in the fund's interest; economic and market review, outlook and strategy

Trustee's report Opinion on whether the manager kept within its investment powers, priced and valued properly and created and cancelled units properly; disclosure of shortcomings and steps taken

Shariah adviser's report For Shariah-compliant funds

Financial statements and auditor's report True and fair view under accounting standards, legal requirements and the deed

The Semi-Annual Report

At minimum: fund information, a performance report, the manager's report, the Trustee's report, the Shariah adviser's semi-annual review (where applicable) and financial statements for the half-year. It must state clearly whether the financial statements are audited .

On Selling Units

Confirmation Detail

Receipt of request That a proper request (and endorsed certificate, if any) was received for a number of units, all units or a ringgit value

Units redeemed Number of units, NAV per unit on the repurchase date and net amount payable
Exit fee Rate as a percentage and in ringgit, and the total amount repurchased
Balance Units remaining, with a balance certificate if certificates are used, or a passbook entry
PRS Tax Points Investors Ask About

The study guide reminds Consultants that:

a PRS member gets tax relief of up to RM3,000 a year on contributions, available from year of assessment 2012 to 2030 ; and

a pre-retirement withdrawal (before age 55) is subject to an 8% tax penalty , except withdrawals on reaching retirement age, on death , on permanent departure from Malaysia , for permanent total disablement, serious disease or mental disability , for healthcare and for housing .

Consultants should check the PPA's website for the latest tax relief rules. Chapter 7B covers these rules in detail.

Three Cost and Activity Measures in Fund Reports

Measure What it shows Where you meet it

Management expense ratio (MER) Annual operating costs (fees plus recovered expenses) as a percentage of the fund's average value Annual fund report for UTS (Chapter 7A shows the calculation)

Total expense ratio (TER) The fund's total expenses relative to its average size, shown in the three-year comparative table Annual report performance section

Portfolio turnover ratio (PTR) How actively the portfolio was traded during the year; a high figure means more buying and selling and more transaction costs Annual report and the Product Highlights Sheet

A rising expense ratio eats into returns every year, and a very high turnover ratio may signal a trading style that does not match a long-term objective. Both are worth raising with investors.

Using Reports in a Client Review

A Consultant meeting a client for an annual review could:

compare the fund's annual total return with its benchmark and with the client's expectations;
check the total expense ratio and portfolio turnover ratio for rising costs or unusually heavy trading;
read the Trustee's report for any shortcomings disclosed;
look at changes in portfolio composition against the stated objective; and

ask whether the client's own circumstances have changed, updating the suitability assessment if needed.