Financial Planning Flashcards
CUM-NAV/unit (Cum-D)
NAV per unit before distribution
Ex-NAV/unit (Ex-D)
NAV per unit after distribution
Income distribution
Ex-D - Distribution =
service charge included
Unit Split
The division of a single unit in UTS into several units
More units at a lower unit price per share
value remains the same
Raw Return
(End Price - Begin Price) / Begin Price
Direct
Upfront
Service Charge
Repurchase Charge
Switching Charges (different fund)
Transfer Charges (different owner)
Indirect
Included in fund
Annual Management Fee
Annual Trustee Fee
Fund Operations Expenses
Financial Planning
A process of meeting an individuals life goals within a certain time frame through the proper management of the individuals present and future finances
Financial Planning Areas
Cash Management
Risk Management & Insurance Planning
Investment Planning
Tax Planning
Retirement & Estate Planning
Investment Planning
- Understand the client
- Data gathering
- Analysing Data
- Preparing the plan
- Implementing the Plan
- Reviewing the Plan
Similarities between UTC vs Financial Planner
Analysis for clients
Understand clients investment objectives
Need a UTC license
Differences between UTC vs Financial Planner
Financial planner needs to have an Investment Adviser license from SC
Financial planner uses financial planning skills
Ethics
Code of Ethics (individual)
Honesty, integrity
Competent
Confidential
Professional
Standards of Professional Conduct
Complying with external regulations
Compliance with law
use of authorization card
appropriate designation or title
Marketing & distribution with prospectus
Core principles
Honesty & integrity
Professionalism
Avoidance of conflict of interest
Disclosure of Information
Observance of Confidentiality
