What is management fee and how does it work?

The management fee of a fund is a fee charged by the respective fund manager for its ongoing active management of the fund, of which a portion is paid to MariBank as a distributor.

How is the management fee charged and reflected in the Unit Price?

The management fee is factored into each day’s Unit Price shown, and no further deductions are made when fund units are bought or sold.

For example, if the Unit Price on the settlement day of the fund (which may differ from the date of order, depending on the fund) is S$1.0400, the proceeds from selling 1,000 units is exactly S$1,040 with no other charges.

Do my returns include management fee?

Returns shown in the MariBank app are after the deduction of the management fee, so you do not have to worry about any further deduction of the management fee from your returns.

For example, if the Past 4-Week Return or Since Inception Return shown in the MariBank app is 4.00% p.a., no further deduction is required to this figure, as this already takes into account all fees.

Read up more about fees charged on your investments here.