Gabriel Tham

Tag Team Member at Kenichi Tag Team

01 Nov 2019

∙

General Investing

Anyone heard of class creation or cash creation for unit trusts?

Anyone heard of class creation or cash creation for unit trusts? Heard it allows the rich people to buy unit trust at nav instead of current price. Thus, undercutting and diluting all retailers in a unit trust holdings.

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Kelly Trinh

01 Nov 2019

Backoffice technical at financial services firm

Is this related to creation units for ETFs? Those are part of the market structure that ensures the price of the ETF is closely aligned to the value of the underlying assets.

Not sure how it relates to unit trusts where you have to redeem/purchase through a fund manager, it sounds similar but as you said seems to be in conflict with interests of unit holders.

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Is it true cash subscription for Unit Trusts allow rich investors to undercut retailers? Or can they spin off a new class of units for them?

I'm looking to invest in unit trusts however I'm not so familiar with it. Anyone has any tips or things to look out for when investing in unit trust?

In view of the proposed merger of CapitaLand Commercial Trust (CCT) and CapitaLand Mall Trust (CMT). Will it be better to buy CCT compared CMT as CMT ($0.259 in cash and 0.72 new CMT units)?

If making unit trust investment via POEMS, is it better to open Cash Plus Account or Cash Management Account?

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