As Trustee of the Feeder Fund that invested in the Target Fund, we receive shares from the Target Fund and then we compute for the Net Asset Value (NAV) and Net Asset Value Per Unit (NAVPU) to correspond to the number of units of participation in the Feeder Fund. This is a UITF and therefore, the Feeder Fund is valued daily depending on the value of the Target Fund less expenses which include the Trustee Fees of SBC TAMG.
Why consider investing in a Feeder Fund?
Access to Offshore Funds
You can access and invest in Asia, US, other Global Investments. You can also invest in offshore thematic funds. Thematic funds are funds where the holdings of the Target Fund follow a thematic strategy, example, investing in technology companies or in companies that have strong ESG characteristics.
Affordable and Efficient Investing
As an investor, you are able to access offshore funds (like Exchange Traded Funds) at smaller investment amounts, and at lower cost. This, as opposed to investing directly in offshore funds where you are required to open and maintain an offshore account and custody account for your holdings. Dividends received will automatically be reinvested, and no wire transfer charges when moving fund abroad.
Diversification
Investing in Feeder Funds, you are also able to diversify your portfolio by expanding your risk exposure to hundreds of securities held and invested by the Target Fund.
Liquid
There is no minimum holding period. If you need to redeem your investment, you only need to follow the settlement period. Example, if settlement is T+5, if you redeem today, you will receive your redemption proceeds after 5 banking days. You only need to maintain the minimum investment amount if you want to stay invested in the Feeder Fund.
For SBC TAMG’s Feeder Funds, the Target Funds are all Exchange Traded Funds and we follow a criteria in choosing the Target Funds for the Feeder Funds which include, size of the ETF, the investment objective of the ETF, the expense ratio of the ETF (i.e. the management fees and other costs in the administration of the ETF), the track record of the ETF in terms of return performance and the number of years that the ETF has been listed in the exchange.
