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1. What is CIMB FTSE ASEAN 40(formerly known as FTSE/ASEAN 40)?
2. What is CIMB FTSE ASEAN 40(formerly known as FTSE/ASEAN 40) Index?
3. What is an exchange-traded fund (ETF)?
4. Why invest in an index?
5. How is the pricing of ETF being done?
6. How can I buy or sell CIMB FTSE ASEAN 40(formerly known as FTSE/ASEAN 40)?
7. What are the advantages of CIMB FTSE ASEAN 40(formerly known as FTSE/ASEAN 40)?
8. Does CIMB FTSE ASEAN 40(formerly known as FTSE/ASEAN 40) pay dividends?
9. How is CIMB FTSE ASEAN 40(formerly known as FTSE/ASEAN 40) different from a normal mutual/unit trust fund?
10. Can I purchase and redeem units of CIMB FTSE ASEAN 40(formerly known as FTSE/ASEAN 40) through the Fund Manager?
11. Where can I get up-to-date price information on CIMB FTSE ASEAN 40(formerly known as FTSE/ASEAN 40)?
12. Where can I find the latest information about CIMB FTSE ASEAN 40(formerly known as FTSE/ASEAN 40)?

1. What is CIMB FTSE ASEAN 40(formerly known as FTSE/ASEAN 40)?
   The CIMB FTSE ASEAN 40(formerly known as FTSE/ASEAN 40) is an exchange-traded fund listed on the SGX-ST, which is designed to track the performance of CIMB FTSE ASEAN 40(formerly known as FTSE/ASEAN 40) Index and it aims to provide investment results that, before expenses, closely correspond to the performance of the CIMB FTSE ASEAN 40(formerly known as FTSE/ASEAN 40) Index.



2. What is CIMB FTSE ASEAN 40(formerly known as FTSE/ASEAN 40) Index?
   CIMB FTSE ASEAN 40(formerly known as FTSE/ASEAN 40) Index is a tradable index representing the performance of the 40 largest companies by market capitalisation in the five (5) ASEAN region markets - Indonesia, Malaysia, Philippines, Singapore and Thailand.
   
   It is ranked by market capitalization, calculated in real-time every 15 seconds, and denominated in US Dollars.
   
   For more information on CIMB FTSE ASEAN 40(formerly known as FTSE/ASEAN 40) Index, please click here.



3. What is an exchange-traded fund (ETF)?
   An ETF is an open-ended investment fund listed and traded on a stock exchange. An ETF aims to track the performance of an index and provide access to a wide variety of markets and asset classes.
   
   ETF allows investors to buy or sell its units in the collective performance of the portfolio of securities of the relevant ETF as a single security.
   
   With the trading on an exchange and the continuous offering of its units, ETF generally adds greater flexibility, ease and liquidity compared to a typical mutual fund.
   
   
4. Why invest in an index?
   Indexing, often called "passive management," involves investing in a group of securities that represent the composition of a broad stock market.
   
   Index funds offer market level performance as they aim to match the performance of a specific index, less fund expenses. Funds that track an index also generally have lower management fees and operating expenses than actively managed funds.
   
   By investing in an index fund, stock selection for the region is taken off the investor. This allows investor to focus on asset allocation.



5. How is the pricing of ETF being done?
   Trading price of the ETF will approximate the trading value of the underlying securities held in the ETF plus any undistributed net income.
   
   The trading price of units in the ETF may differ from the Net Asset Value per unit of the ETF and there can be no assurance that a liquid secondary market will exist for units of the ETF.
   
   The creation and redemption process prevents significant premium/discount. Although supply and demand determine the market price of an ETF, arbitrage will help keep the traded price of an ETF in line with its underlying value.



6. How can I buy or sell CIMB FTSE ASEAN 40(formerly known as FTSE/ASEAN 40)?
   Investors can buy or sell CIMB FTSE ASEAN 40(formerly known as FTSE/ASEAN 40) through a broker, exactly the same as stocks. The CIMB FTSE ASEAN 40(formerly known as FTSE/ASEAN 40) is listed on the SGX-ST and can be traded intraday, making it easy for investors to buy or sell. Investors can commence trading the units of CIMB FTSE ASEAN 40(formerly known as FTSE/ASEAN 40) from the listing date, i.e. [21 September 2006].



7. What are the advantages of CIMB FTSE ASEAN 40(formerly known as FTSE/ASEAN 40)?
   
   • Instant exposure to ASEAN's 40 largest stocks by just investing in a single tradable security.
   
   
   
   • Exposure to ASEAN growth - investors can gain instantaneous access to ASEAN growth both conveniently and affordably.
     
     
   • Zero Subscription Fees & Redemption Fees - only customary transaction charges, including brokerage commission charges and clearing fees apply.
   
   
   
   • Lower Overall Cost - the cost of investing is generally lower than an actively managed fund.
     
     
   • Flexibility & Liquidity - the combination of trading on an exchange and the continuous offering of units in the Fund provide investors with greater flexibility and convenience in trading the units with higher liquidity than most typical mutual funds.
     
     
   • Distribution of income – yearly distribution of income of the Fund is currently intended, to the extent that they are available for distribution and subject to the performance of the Fund.
     
     
   • Transparency – the holdings of the Fund are disclosed from time-to-time.
     
     
   • Lower Tracking Error – by tracking the benchmark index the Fund will generally have a lower tracking error relative to an actively managed fund.
     



8. Does CIMB FTSE ASEAN 40(formerly known as FTSE/ASEAN 40) pay dividends?
   We intend to have yearly distribution of income of the Fund to unit holders on an ongoing basis. The payment of distributions from the Fund is at the discretion of Manager of the Fund and will vary from period to period depending on market conditions and the performance of the Fund.
   
   
9. How is CIMB FTSE ASEAN 40(formerly known as FTSE/ASEAN 40) different from a normal mutual/unit trust fund?
   
   

   	CIMB FTSE ASEAN 40(formerly known as FTSE/ASEAN 40)	Normal Mutual/Unit Trust Fund
   Dealing	Traded on Singapore Exchange Securities Trading Limited.	Private subscription and redemption from fund.
   Pricing	During trading hours of a dealing day.	End of dealing day at NAV of the fund.
   Accessibility	Any broker licensed by or registered with the Monetary Authority of Singapore and Singapore Exchange Securities Trading Limited to carry on the business of dealing in securities.	Restricted to fund manager and appointed distributors.
   Expense ratio	Generally lower – brokerage fee, stamp duty and transaction fee.	Generally higher – sales load and redemption fees.
   Portfolio turnover	Generally lower, hence lower transaction cost.	Generally higher, hence higher transaction cost.
   Transparency	Higher – fund holdings disclosed daily.	Lower – fund holdings normally disclosed monthly or semi-annually.




10. Can I purchase and redeem units of CIMB FTSE ASEAN 40(formerly known as FTSE/ASEAN 40) through the Fund Manager?
    Retail investors cannot purchase or redeem units of CIMB FTSE ASEAN 40(formerly known as FTSE/ASEAN 40) like they do for normal mutual/unit trust fund units.
    
    Retail investors who intend to purchase or redeem units of CIMB FTSE ASEAN 40(formerly known as FTSE/ASEAN 40) can simply place orders through their brokerage accounts for execution on the SGX-ST.
    
    
11. Where can I get up-to-date price information on CIMB FTSE ASEAN 40(formerly known as FTSE/ASEAN 40)?
    
    Pricing will be provided twice per day:
    - the mid-day estimated Indicative Optimal Portfolio Value (IOPV) per unit and;
    - the end-day Net Asset Value per unit.
    
    Investors can obtain this information from their brokers, stock quotation systems, or on this website on a delayed basis by clicking here. The closing prices are also published in major newspapers on the following Singapore business day.


Please note that the trading price of the units of the CIMB FTSE ASEAN 40(formerly known as FTSE/ASEAN 40) may differ from the actual Net Asset Value per unit of the Fund.


12. Where can I find the latest information about CIMB FTSE ASEAN 40(formerly known as FTSE/ASEAN 40)?
    The latest information about CIMB FTSE ASEAN 40(formerly known as FTSE/ASEAN 40) is available on this website and on the SGX-ST. Additionally, you may also ask your stockbroker or remisier.