MANULIFE CHINA EQUITY FUND

Transcription

1 Product Highlights Sheet dated 25 January 2018 MANULIFE CHINA EQUITY FUND RESPONSIBILITY STATEMENT This Product Highlights Sheet has been reviewed and approved by the directors and/or persons approved by the Board of Manulife Asset Management Services Berhad ( MAMSB ) and they collectively and individually accept full responsibility for the accuracy of the information. Having made all reasonable inquiries, they confirm to the best of their knowledge and belief, there are no false or misleading statements, or omission of other facts which would make any statement in the Product Highlights Sheet false or misleading. STATEMENT OF DISCLAIMER The Securities Commission Malaysia has authorized the issuance of Manulife China Equity Fund ( the Fund ) and a copy of this Product Highlights Sheet has been lodged with the Securities Commission Malaysia. The authorization of the Fund and lodgment of this Product Highlights Sheet, should not be taken to indicate that the Securities Commission Malaysia recommends the Fund or assumes responsibility for the correctness of any statement made or opinion or report expressed in this Product Highlights Sheet. The Securities Commission Malaysia is not liable for any non-disclosure on the part of MAMSB, the Manager responsible for the Fund and takes no responsibility for the contents of this Product Highlights Sheet. The Securities Commission Malaysia makes no representation on the accuracy or completeness of this Product Highlights Sheet, and expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of its contents.

2 This product highlights sheet only highlights the key features and risks of this Fund. Investors are advised to request, read and understand the prospectus and any supplemental prospectus(es) of the Fund before deciding to invest. PRODUCT HIGHLIGHTS SHEET MANULIFE CHINA EQUITY FUND BRIEF INFORMATION ON THE PRODUCT 1. What is the Fund about? The Fund is a feeder fund that aims to achieve long-term capital growth through investment, primarily* in undervalued companies with long-term potential and substantial business interest in the Greater China Region (which includes People s Republic of China, Hong Kong and Taiwan) which are listed or traded on stock exchanges of Shanghai, Shenzhen, Hong Kong, Taipei or other exchanges. *Primarily means mainly 70% invested. Note: Any material change to the Fund s investment objective would require unit holders approval. PRODUCT SUITABILITY 2. Who is the Fund suitable for? The Fund is suitable for investors who: wish to participate in the potential of the Greater China Region markets; and are willing to accept high risk in their investments. 3. What am I investing in? Fund Feeder Fund (Equity) Category Fund Type Investment Strategy and Policy Growth KEY PRODUCT FEATURES This Fund is a feeder fund that invests at least 95% of its net asset value ( NAV ) in the Manulife Global Fund - China Value Fund (the Target Fund ), Share Class A. The risk management strategies and techniques employed will be at the Target Fund level by Manulife Asset Management (Hong Kong) Limited ( MAMHK / the Investment Manager ) with its investment strategy that involves diversification among its asset allocation to invest in undervalued stocks or companies in China market. Although the Fund is passively managed, the investments of the Fund will be rebalanced from time to time to meet redemptions and to enable the proper and efficient management of the Fund. Notwithstanding the above, Manulife Asset Management Services Berhad (the Manager ) may, in consultation with the Trustee and with the unit holder s approval, replace the Target Fund with another fund of a similar objective if, in the Manager s opinion, the Target Fund no longer meets this Fund s investment objective, or when acting in the interest of the unit holders. In all circumstances, the Fund will continue investing at least 95% of its NAV in the Target Fund and as such, the performance of the Target Fund will reflect on

3 Asset Allocation Benchmark the Fund s performance. Asset Class Allocation (% of the Fund s NAV) Target Fund Share Class A Minimum 95% Money market instruments (including fixed income securities with a maturity period of no more than 365 days) and placement of deposits with financial institutions for liquidity purposes. MSCI Golden Dragon Index Launch Date 7 January 2010 Financial Year End Distribution Policy 31 October Target Fund s Information Name of Target Fund Management Company of the Target Fund Investment Manager of the Target Fund Domicile Country Regulatory Authority of the Target Fund The Fund intends to distribute income, if any, on an annual basis. Manulife Global Fund - China Value Fund Manulife Global Fund Manulife Asset Management (Hong Kong) Limited Luxembourg Date of Establishment 1 April 1998 Name of Share Class Investment Objective Investment Policy and Strategy Commission de Surveillance du Secteur Financier Share Class A 2%-5% The Target Fund aims to achieve long-term capital appreciation through investment, primarily in securities of companies with substantial business interests in the Greater China Region (which includes Mainland China, Hong Kong and Taiwan) which are listed or traded on the stock exchanges of Shanghai, Shenzhen, Hong Kong, Taipei or other overseas exchanges and which are currently undervalued but which may have long-term potential. The Target Fund invests in companies established in Greater China Region or which derive a majority of their revenue from business related to Greater China Region, whether in the form of direct investment in, or trade with, Greater China Region. This includes companies incorporated and/or listed outside Greater China Region and have over 50% of its business in Greater China Region. The Target Fund invests generally in equity securities of its target companies, although it may also invest in convertible bonds and depositary receipts issued by such companies, in all cases, within the limits of the investment and borrowing powers and restrictions contained in the prevailing prospectus of the Target Fund. Investments of the Target Fund may also include A-Shares and/or B-Shares listed on the Shanghai Securities Exchange ( SSE ) and the Shenzhen Stock Exchange in Mainland China. The Target Fund may invest directly in certain China A-Shares listed on the SSE in Mainland China via Shanghai-Hong Kong Stock Connect. The Target Fund may also invest indirectly in China A-Shares via China

4 A-Shares Access Products such as equity-linked notes, participating certificates, participatory notes, swaps and other similar instruments issued by institutions that have obtained QFII and/or RQFII licenses from the China Securities Regulatory Commission within a Quota as approved by the State Administration of Foreign Exchange of China. In the event where the Target Fund invests in China A-Shares, it is expected that the Target Fund will not hold (directly or indirectly) more than 30% of its net asset value in aggregate, in China A- Shares. Further, the Target Fund will not hold (directly or indirectly) more than 10% of its net asset value in aggregate, in China B- Shares. The Target Fund may also invest in fixed income securities and hold cash on an ancillary basis, if determined to be appropriate by MAMHK. The Management Company seeks to differentiate the Target Fund from other funds investing in Mainland China that are already available in the market by investing principally in companies that are undervalued. Undervalued stocks are those that trade at a lower valuation than their intrinsic value. MAMHK will use in-house financial models to arrive at a company s intrinsic value. Such companies, in MAMHK s opinion, either have excellent potential but are generally not recognized as having such potential and can therefore be purchased at cheap prices, or are currently out-offavour with the market but MAMHK s research indicates that they have significant potential for gains. The emphasis will be on selecting such stocks and, as a result, the portfolio will consist of listed securities that may not have a high degree of correlation with other more mainstream Mainland China stocks. The Target Fund will be permitted, within applicable restrictions, to use derivatives for the purpose of efficient portfolio management and hedging of portfolio risk and may, from time to time, do so through the use of index/ equity options or futures contracts if determined to be appropriate by MAMHK. 4. Who am I investing with? Manager Manulife Asset Management Services Berhad Trustee HSBC (Malaysia) Trustee Berhad KEY RISKS 5. What are the key risks associated with this Fund? Fund Manager Risk Since the Fund invests into a collective investment scheme (the Target Fund) managed by a foreign fund house, the Manager has no control over the foreign fund house s investment techniques and knowledge, operational controls and management. In the event of mismanagement of the Target Fund by the foreign fund house, the NAV of the Fund which invested into the Target Fund would be affected negatively. Should such a situation arise, the Manager may invest in an alternative collective investment scheme that is consistent with the objective of the Fund. Currency Risk Where a percentage of the value of the Fund is invested in foreign currency or assets denominated in a foreign currency, the Fund may be exposed to currency fluctuations as well as foreign exchange regulatory changes. Potential fluctuation in foreign exchange rates will affect the

5 value of the Fund s foreign investments when converted into local currency and subsequently the value of the unit holders investments. Country Risk The value of the assets of a Fund may also be affected by the political and economic conditions of the country in which the investments are made. There is a risk of price fluctuations in foreign securities because of political, financial and economic events in foreign countries. If this occurs, there is a possibility that the unit price of the Fund may be adversely affected. Liquidity Risk This refers to the ease in which securities can be sold at or near its fair value depending on the volume traded on the market. Should a security become illiquid, it may be sold at a discount to tis fair value, thus lowering the value of the Fund s investments and subsequently the value of unit holders investments. For feeder funds, liquidity risk is associated to the Fund as the Target Fund may not be able to meet large redemption requests in a timely manager. The Target Fund invests in equities and equity-related securities; should there be a large redemption, the Target Fund will have to liquidate some of these equities and equity-related securities to meet the redemption requests from the Fund level, which may adversely affect the net asset value of the Target Fund and in turn impact the NAV of the Fund. Specific Risks associated with the Target Fund Investment Risks Currency Risks Umbrella Structure of MGF and Cross- Liquidity and Volatility Risks Liability Risk Rating of Investment Risk International Investments Risk Taxation Risk Changes Resulting from the United Voluntary Liquidation and Early Termination Kingdom s exit from the European Union Risk Unlisted Securities Risk Financial Derivative Instruments (FDIs) Emerging Markets Risks Risks Political and Regulatory Risks FDIs other than for Investment Purpose Natural Resources Sector Risk Securities Lending Custodial, Clearance and Settlement Risk Repurchase and Reverse Repurchase Small-Cap Risks Agreements Mainland China Investment Risks Mainland China Tax Risks Associated with Investments in China A-Shares Access Products Risks Associated with Investments via Shanghai-Hong Kong Stock Connect Macroeconomic Risk Factors Global Commodity Prices Oil Price Risks Government Policy Risks Risk of Price Controls Risk of Stock Market Controls Emerging Market Risks Geopolitical Risks Credit Downgrades Foreign Exchange Risks Labor Market Risks Environmental Regulation Risks Please refer to the Fund s Master Prospectus dated 29 December 2016 and Supplemental Master Prospectus dated 10 November 2017 for further details on specific risks associated with the Target Fund. FEES, CHARGES & TRANSACTION INFORMATION 6. What are the fees and charges involved? Charges when buying units of the Fund Sales Charge Distributors Institutional Unit Trust Advisers ( IUTAs ) Maximum Sales Charge on the NAV per unit of the Fund* Up to 5.50% of the NAV per unit

6 Repurchase Charge Switching Fee Transfer Fee Manager Unit Trust Consultants Employees Provident Fund ( EPF ) Sales Up to 6.00% of the NAV per unit Up to 3.00% of the NAV per unit *The charges are negotiable. Note: The Fund is currently an Employees Provident Fund Members Investment Scheme ( EPF-MIS ) approved fund. Nil Subject to the conditions on switching as set out in the Master Prospectus. RM3.00 per transfer Fees incurred when investing in the Fund Management fee 1.80% of the NAV per annum Trustee fee 0.08% of the NAV per annum, subject to a minimum fee of RM18,000 per annum (excluding foreign custodian fees and charges). All fees and charges payable to the Manager and the Trustee are subject to goods and services tax as may be imposed by the Government of Malaysia from time to time, at the prevailing rate. Minimum initial investment Minimum additional investment Cut-off time RM1, or such lower amounts as the Manager may decide from time to time. RM or such lower amounts as the Manager may decide from time to time p.m. on a business day YOU SHOULD NOT MAKE PAYMENT IN CASH TO A UNIT TRUST CONSULTANT OR ISSUE A CHEQUE IN THE NAME OF A UNIT TRUST CONSULTANT. VALUATION AND EXITING FROM INVESTMENT 7. How often are valuations available? The valuation of the Fund is carried out daily at the end of the business day. The Fund s NAV per unit will be available on the Manager s website: 8. How can I exit from this investment and what are the risks and costs involved? Redeeming an investment Unit holders may redeem part or all of their investments at any time by completing a Repurchase/Switching Form which is available from 8.45 a.m. to 5.30 p.m. at the office of the Manager and its branches. The redemption proceeds will be paid within ten (10) calendar days from the date on which the request to repurchase is received by the Manager. There is no repurchase charge levied on the repurchase of units. Minimum redemption amount Minimum holding/ balance Cut-off time 500 units 500 units 3.00 p.m. on a business day Cooling-off period The cooling-off period is only applicable to any person investing for the first time in any unit trust funds managed by the Manager. Unit holders have the right, within six (6) business days

7 from the day of the receipt by the Manager of their application form, to call for a withdrawal of their investments. A full refund of the total investments (which includes sales charge) will be refunded to the unit holder within 10 calendar days from the receipt of the application for cooling-off by the Manager. In the case of an investment via EPF-MIS, the cooling-off period is subject to EPF s terms and conditions. For purchase/ redemption transaction made via IUTAs, the transaction is subject to the terms and conditions of the respective IUTAs. FUND PERFORMANCE 9. Average Total Return for Financial Year Ended 31 October 2017 Basis of calculation Average Total Return = Annualised Total Return = [(1+ Total return for the period) (Actual no. of days in a year No. of days during the period) 1] x 100% 1-Year 3-Year 5-Year Manulife China Equity Fund Benchmark Annual Total Return for Financial Year Ended 31 October 2017 Basis of calculation Annual Total Return = Manulife China Equity Fund (NAV t NAV t-1) NAV t * 2011 NAV t denotes NAV at the end of the period. NAV t-1 denotes NAV at the beginning of the period (18.69) (5.44) (6.10) Benchmark 7.45 (13.84) For the financial year ended 31 October 2017, the Fund s return increased by 25.92%, compared with its benchmark return of 26.50%. *For the period from 28 January 2010 (commencement date) to 31 October Note: The benchmark was changed from FTSE All World Greater China Index to MSCI Golden Dragon Index effective 17 November 2017 to better reflect the Fund s investment strategy. PAST PERFORMANCE OF THE FUND IS NOT AN INDICATION OF ITS FUTURE PERFORMANCE. 11. Portfolio Turnover Ratio and Income Distribution per Unit Financial Year End Portfolio Turnover Ratio ( PTR ) The PTR for FYE2017 is 1.45 times and was higher than FYE 2016 mainly due to increase in trading activities. Gross distribution per unit (sen) Net distribution per unit (sen) There was no income distribution during the financial year ended 31 October 2017.

8 CONTACT INFORMATION 12. Who should I contact for further information or to lodge a complaint? i) For internal dispute resolution, you may contact us: Manulife Asset Management Services Berhad 13th Floor, Menara Manulife No. 6, Jalan Gelenggang Damansara Heights Kuala Lumpur. Tel: (03) Fax: (03) MY_CustomerService@manulife.com Website: ii) If you are dissatisfied with the outcome of the internal dispute resolution process, please refer your dispute to the Securities Industries Dispute Resolution Corporation (SIDREC): (a) via phone to : (b) via fax to : (c) via to : info@sidrec.com.my (d) via letter to : Securities Industries Dispute Resolution Corporation (SIDREC) Unit A-9-1, Level 9, Tower A Menara UOA Bangsar, No. 5, Jalan Bangsar Utama Kuala Lumpur. iii) Even if you have initiated a dispute resolution process with SIDREC, you may also direct your complaint to the SC. To make a complaint, please contact the SC s Consumer & Investor Office: (a) via phone to Aduan Hotline at : (b) via fax to : (c) via to : aduan@seccom.com.my (d) via online complaint form available at (e) via letter to : Consumer & Investor Office Securities Commission Malaysia No. 3, Persiaran Bukit Kiara, Bukit Kiara, Kuala Lumpur. iv) Federation of Investment Managers Malaysia (FiMM) s Complaints Bureau: (a) via phone to : (b) via fax to : (c) via to : complaints@fimm.com.my (d) via online complaint form available at (e) via letter to : Legal, Secretariat & Regulatory Affairs Federation of Investment Managers Malaysia , 6th Floor, Wisma Tune No. 19, Lorong Dungun Damansara Heights Kuala Lumpur.