The platform fee is applicable to units of bond funds purchased, switched-buy, transferred-in after 3.00pm, 20-Sep-2013.

The bond fund platform fee only applies to new units of bond funds purchased using cash.

It does not apply to bond funds (new/existing units) purchased using EPF monies and PRS funds.

The platform fee as well as other fund charges is made available at the respective fund factsheets under "Fees".

The platform fee is accrued on a daily basis and is deducted on a quarterly basis.

Formulas:

Daily Bond Fund Holdings = Number of Units × Fund Price

Average Daily Platform Fee = Annual Bond Platform Fee ÷ Number of Days in A Year

Quarterly Platform Fee Payable = Total of Daily Bond Fund Holdings × Average Daily Platform Fee

View example calculation.

No. Bond fund holdings are calculated solely based on individual accounts.

The deduction date of the bond fund platform fee is on the 25th of January, April, July and October for the respective quarters as shown in the table below.

Table 11.6.1: Bond platform fee schedule.

If you choose to redeem your units prior to the scheduled deduction date, you will still be charged the accrued platform fee to-date.

By default, the bond fund platform fee will be deducted from one of the holdings in your account in accordance to the priority list below (from highest priority to lowest priority):

• RHB Cash Management Fund 2;
• Best Performing Money Market Fund;
• Best Performing Fixed Income Fund;
• Best Performing Equity Fund;
• Best Performing Fixed Income Fund with Redemption Fee; or
• Best Performing Equity Fund with Redemption Fee.

Example:
An investor is invested in a bond fund subjected to platform fee. The system will identify if the RHB Cash Management Fund 2 is sufficient for deduction first. If not, it will proceed to attempt deduction from Best Performing Fund. The cycle continues. If the system did not identify any holdings with sufficient balance, the platform fee will be charged on the fund itself or the redemption proceeds in the case of full redemption.

We will not deduct platform fee partially from any one of your account holdings. Please ensure that you have sufficient monies in your respective to deduct platform fee.

The ‘best performing fund’ is the fund that has recorded the highest absolute gains (in terms of the fund’s currency), calculated based on the latest available NAV on the deduction date of the bond fund platform fee.

Example:
An investor has a bond platform fee of USD 5.00 due for the quarter. Firstly, the system will compare the absolute gains in USD term among USD denominated funds based on the latest available NAV, and deduct the platform fee from the fund with the highest absolute gains. If there are no available USD funds for deduction purposes, the system will then compare MYR denominated funds. The system will only consider funds denominated in the bond platform fee’s currency (in this case, USD) or MYR denominated funds. Even if the investor has a EUR-denominated fund, it will not be eligible for deduction purpose.

An email with the relevant details on platform fee will be sent to you whenever a platform fee is charged.