Islamic Fund Management
59
Table 3.6: Comparison of Transaction Costs by Asset Class – the Malaysian Experience
Type of Fund
Type of Fee
Equity Fund Fixed-Income Fund ETF
CIMB Islamic DALI
Equity Growth Fund
Franklin Malaysia
Sukuk Fund
MyETF Dow Jones
US Titans 50
Minimum
Investment
RM500 RM1,000 Minimum lot of 100
units based on the
market price
Initial Fee
(Upfront)
Sales charge:
Up to 6.50% of the NAV
per unit
Sales charge:
Up to 3.00% of the NAV
per unit
Brokerage fee:
Up to 0.70% of the
contract value (subject
to a minimum of RM40)
Management Fee 1.50% 0.95% 0.40%
Trustee Fee 0.06% 0.06% 0.035%
Switching Fee Difference of application
fees between the two
funds
- -
Redemption Fee - - -
Annual Index
Licence Fee
- - 0.04%
Bursa Securities
Clearing Fee
- - -
Total Fee Up to 8.06% Up to 4.01% Up to 1.175%
Sources: CIMB Islamic DALI Equity Growth Fund Prospectus (2016, June), Franklin Malaysia Sukuk Fund
Prospectus (2016, November), MyETF Dow Jones US Titans 50 Prospectus (2017, September)
Note: The table above provides a comparison of basic transaction costs. Other applicable costs are detailed in the
respective prospectuses.
In the case of Pakistan, as shown in the total transaction costs for Islamic equity
funds and Islamic commodity funds are more or less the same, except that the former charges
higher management and trustee fees.
Table 3.7: Comparison of Transaction Costs by Asset Class – the Pakistani Experience
Type of Fund
Type of Fees
Islamic Equity Fund Islamic Money
Market Fund
Islamic Commodity
Fund
National Investment
Trust (NIT) Islamic
Equity Fund
HLB Money Market
Fund
Meezan Gold Fund
Minimum
Investment
PKR5,000 PKR1,000 PKR5,000
Management Fee 2% 1% 1%
Trustee Fee =
Actual custodial
expenses/Charges
plus the specified
tariff
Net Assets
(million)
Tariff Net Assets
(million)
Tariff Net Assets
(million)
Tariff
Up to
PKR1,000
PKR0.7
million or
0.20% p.a.
of NAV,
whichever
is higher
PKR 1-
PKR1,000
PKR0.6
million or
0.17% p.a.
of NAV,
whichever
is higher
PKR1-
PKR1,000
0.17% p.a.
of NAV
Above
PKR1,000
PKR 2.0
million
plus 0.10%
Above
PKR1,001-
PKR5,000
PKR1.7
million
plus 0.085
Above
PKR1,001-
5,000
PKR1.7
million
plus 0.085