AmAsia Pacific REITs Plus*

Transcription

1 AmInvest Prospectus for AmAsia Pacific REITs Plus* may invest in the listed equities in the real estate sector. Prospectus Date Valid Until THE FUND IS CONSTITUTED ON 1 JULY June June 2014 The Manager AmInvestment Services Berhad company number: A The Trustee Deutsche Trustees Malaysia Berhad company number: H INVESTORS ARE ADVISED TO READ AND UNDERSTAND THE CONTENTS OF THE PROSPECTUS. IF IN DOUBT, PLEASE CONSULT A PROFESSIONAL ADVISER. FOR INFORMATION CONCERNING CERTAIN RISK FACTORS WHICH SHOULD BE CONSIDERED BY PROSPECTIVE INVESTORS, SEE RISK FACTORS COMMENCING ON PAGE 10.

2 PREFACE Dear Prospective Investors, This Prospectus introduces you to AmAsia Pacific REITs Plus* (the Fund ), a fund managed by AmInvestment Services Berhad. * The word Plus is used in the Fund s name as the Fund is a continuation of the AmAsia Pacific REITs and the Fund may invest in listed equities in the real estate sector. The Fund aims to provide regular income and to a lesser extent capital appreciation over the medium to long term (at least 3 years) by investing in real estate investment trusts (REITs) and equities in the real estate sector. The Fund seeks to achieve its investment objective by investing a minimum of 70% of its NAV in REITs and a maximum of 29% of its NAV in listed equities in the real estate sector, which are listed in the Asia Pacific region, which includes but not limited to Australia, Hong Kong, Indonesia, Japan, Malaysia, New Zealand, Philippines, Singapore, South Korea, Taiwan and Thailand. In addition to country diversification, the Fund will also diversify into different REITs sub-sectors such as residential, commercial and industrial. The Fund will also hold a minimum of 1% of its NAV in Liquid Assets. The Investment Manager employs an active allocation strategy, which means the asset allocation decisions will be made after reviewing the macroeconomic trends and REITs market outlook of the respective countries in the Asia Pacific region. The Investment Manager will be targeting REITs that have been generating regular income returns with the potential for capital growth. In evaluating the suitability of REITs for investment, the Investment Manager will conduct a review of the track record of the REIT, investment portfolio of the REIT, financial status, income distribution policy, cost factors and other factors deemed important by the Investment Manager. For equities, the Investment Manager will employ bottom-up security selection strategy and focus on undervalued companies which demonstrate sound corporate fundamentals and are expected to provide dividends yield above the market average on a medium to long term basis. The Investment Manager may also select companies with improving fundamentals and growth at reasonable valuations. Stock valuation fundamentals considered are earnings per share growth rate, return on equity, price earnings ratio and price to book multiples. Equities in real estate sector include real estate investment companies that derive revenue from rental income and/or capital appreciation from real estate as well as real estate development companies. The specific risks of investing in the Fund are risks associated with investment in REITs and real estate equities, securities risk, concentration risk, income distribution risk, country risk, currency risk, regulatory and legal risk and taxation risk. Kindly refer to page 11 for detailed information on the specific risks of investing in the Fund. There are fees and charges payable when investing in the Fund. The fees and charges payable are as follows: (i) (ii) (iii) entry charge of up to 5.00% of NAV per unit of the Fund; annual management fee of up to 1.50% p.a. of the NAV of the Fund; annual trustee fee of up to 0.08% p.a. of the NAV of the Fund, subject to a minimum fee of RM10,000 p.a.; and i

3 (iv) other fees and charges stated in the Prospectus. There will be no exit penalty charged by the Fund. The Fund is suitable for investors who: wish to have investment exposure in real estate sector through a diversified portfolio of REITs and real estate equities in Asia Pacific region. Portfolio diversification is obtained by investing in REITs of various sub-sectors (for example, residential, commercial and industrial) and real estate equities; and seeks regular income and to a lesser extent capital appreciation over the medium to long term. You may submit an application to subscribe or redeem units of the Fund at AmBank and selected Institutional Unit Trust Advisers (IUTAs). For more details on the list of IUTAs, please contact the Manager. For more information, kindly contact us on (03) or by fax (03) or aminvest@ambankgroup.com. Finally, thank you for your interest in AmAsia Pacific REITs Plus*.. Harinder Pal Singh Principal Officer/Director AmInvestment Services Berhad * The word Plus is used in the Fund s name as the Fund is a continuation of the AmAsia Pacific REITs and the Fund may invest in listed equities in the real estate sector. Note: Please refer to pages 1 to 2 for definition of words in caption above. ii

4 DISCLAIMER Responsibility Statements This First AmInvest Prospectus for AmAsia Pacific REITs Plus* has been reviewed and approved by the directors of AmInvestment Services Berhad, and they collectively and individually accept full responsibility for the accuracy of the information. Having made all reasonable enquiries, 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 this First AmInvest Prospectus for AmAsia Pacific REITs Plus* false or misleading. * The word Plus is used in the Fund s name as the Fund is a continuation of the AmAsia Pacific REITs and the Fund may invest in listed equities in the real estate sector. Statements of Disclaimer The Securities Commission Malaysia has authorized the Fund and a copy of this Prospectus has been registered with the Securities Commission Malaysia. The authorization, and the registration of this Prospectus, should not be taken to indicate that the Securities Commission Malaysia recommends the said Fund or assumes responsibility for the correctness of any statement made or opinion or report expressed in this Prospectus. The Securities Commission Malaysia is not liable for any non-disclosure on the part of the AmInvestment Services Berhad responsible for the said Fund and takes no responsibility for the contents in this Prospectus. The Securities Commission Malaysia makes no representation on the accuracy or completeness of this Prospectus, and expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of its contents. INVESTORS SHOULD RELY ON THEIR OWN EVALUATION TO ASSESS THE MERITS AND RISKS OF THE INVESTMENT. IN CONSIDERING THE INVESTMENT, INVESTORS WHO ARE IN DOUBT ON THE ACTION TO BE TAKEN SHOULD CONSULT PROFESSIONAL ADVISERS IMMEDIATELY. Additional Statements No units will be issued or sold based on this Prospectus later than one year after the date of this Prospectus. Investors are advised to note that recourse for false or misleading statements or acts made in connection with the Prospectus is directly available through sections 248, 249 and 357 of the Capital Markets and Services Act This Prospectus does not constitute an offer or solicitation to anyone in any jurisdiction in which such offer or solicitation is not authorised or to any person to whom it is unlawful to make such offer or solicitation. An investment in the Fund carries with it a degree of risk. The value of units and the income from it, if any, may go down as well as up, and investors may not get back the amount invested. Investors should consider the risk factors set out under the heading Risk Factors in this Prospectus. iii

5 Statements made in this Prospectus are based on the law and practices currently in force in Malaysia and are subject to changes in such law and practices. Any reference to a time or day in this Prospectus shall be a reference to that time or day in Malaysia, unless otherwise stated. An investment in the Fund is not a deposit of any bank. Neither returns nor repayments of capital are guaranteed by any member of the AmInvestment Group Berhad or its group of companies. No person has been authorised to issue any advertisement or to give any information, or to make any representations in connection with the offering, placing, subscription, sale, switching or redemption of units in the Fund other than those contained in this Prospectus or any supplemental therein and, if issued, given or made, such advertisement, information or representations must not be relied upon by an investor. Any purchase made by any person on the basis of statements or representations not contained in or inconsistent with the information and representations contained in this Prospectus or any supplemental therein will be solely at the risk of the investor. Investors may wish to consult their independent professional adviser about the suitability of this Fund for their investment needs. Investors in the Fund agree that personal details contained on the application form and data relating to them may be stored, modified and used in any other way by the Fund or the Manager or the Manager s associated companies within the AHB for the purposes of administering and developing the business relationship with the investor. Investors who are of US Person are not allowed to purchase the Fund. iv

6 CONTENTS 1 Definitions 3 Corporate Directory 5 Key Data of the Fund Fund Information Fees and Charges Transaction Details Other Information 10 Risk Factors General Risks of Investing in the Fund Specific Risks Uniquely Associated with the Investment Portfolio of the Fund 13 The Fund s Detailed Information 17 Fees, Charges and Expenses Charges Other Charges Ongoing Fees and Expenses Rebates and Soft Commission 20 Transaction Information Pricing and Valuation Points Making an Initial Investment Making an Additional Investment Other Relevant Information when Making an Investment Making Withdrawals Income Distribution Policy Unclaimed Moneys Distribution Channels 29 Salient Terms of the Deed Rights and Liabilities of Unit Holders Fees and Charges Permitted by the Deed Permitted Expenses Payable Out of the Fund Retirement, Removal or Replacement of the Trustee Retirement, Removal or Replacement of the Manager Termination of the Fund Unit Holders Meeting 33 Related Party Transaction/Conflict of Interest 34 Additional Information Keeping You Informed Keeping Us Informed v

7 35 Documents Available for Inspection 36 Managing the Fund s Investment The Manager Financial Information Duties and Responsibilities of the Manager The Board of Directors The Investment Committee Key Personnel of the Manager Material Litigation The Investment Manager Key Personnel of the Investment Manager Delegation of Fund Accounting and Valuation Services 41 The Trustee Deutsche Trustees Malaysia Berhad Financial Performance Experience in Trustee Business Board of Directors and Chief Executive Officer Duties and Responsibilities of the Trustee Statement of Responsibility of the Trustee Trustee s Disclosure of Material Litigation Trustee s Delegate (Custodian) Disclosure on Related-Party Transactions/Conflict of Interests 44 Taxation 49 Consent 50 Directory vi

8 DEFINITIONS AHB AIM, AmInvestment Management, Investment Manager AIS, the Manager, AmInvestment Services, us, our or we AmBank AmInvestment Bank AmInvestment Group Berhad AMMB Holdings Berhad and its group of companies AmInvestment Management Sdn Bhd AmInvestment Services Berhad AmBank (M) Berhad AmInvestment Bank Berhad AmInvestment Group Berhad and its group of companies Auditor Has the same meaning as defined in the CMSA 2007 Base Currency Business Day The currency in which the Fund is denominated i.e. Ringgit Malaysia (RM) A day on which commercial banks are open for business in Malaysia other than Saturday, Sunday or public holidays The Manager may declare certain Business Days to be a non-business Day if the Fund s investment in foreign markets which are closed for business is at least 50% of the Fund s NAV. This is to ensure that investors are given a fair valuation of the Fund when making subscription or withdrawal. CMSA 2007, the Act Capital Markets and Services Act 2007 and any amendments made thereto Deed The Deed dated 3 December 2012 between the Trustee and the Manager Fund AmAsia Pacific REITs Plus The word Plus is used in the Fund s name as the Fund is a continuation of the AmAsia Pacific REITs and the Fund may invest in listed equities in the real estate sector. Funds Management Division The Funds Management Division of AmInvestment Group Berhad comprising AmInvestment Services Berhad, AmIslamic Funds Management Sdn Bhd and AmInvestment Management Sdn Bhd Initial Offer Period The period of up to twenty one (21) days commencing from the date units of the Fund are first offered for sale IUTA Institutional Unit Trust Adviser registered with the Federation of Investment Managers Malaysia (FiMM) to market and distribute unit trust funds Latest Practicable Date 31 October 2012 AmAsia Pacific REITs Plus 1

9 Liquid Assets NAV per unit Net Asset Value (NAV) Prospectus, this Prospectus Real Estate Investment Trust (REIT) RM SC, the SC SC Guidelines Trustee Trustee s Delegate (Custodian) Unit Holder(s), investor(s), applicant, you US (United States) Person Withdrawal, exit Money market instruments which can be converted into cash within seven (7) Business Days Net Asset Value of the Fund divided by the number of units in circulation, at a particular valuation point The value of all the assets of the Fund less the value of all the liabilities of the Fund at a valuation point; solely for the purpose of computing the annual management fee and annual trustee fee, the NAV of the Fund is inclusive of the management fee and trustee fee for the relevant day AmInvest Prospectus for AmAsia Pacific REITs Plus* * The word Plus is used in the Fund s name as the Fund is a continuation of the AmAsia Pacific REITs and the Fund may invest in listed equities in the real estate sector. A collective investment scheme that invests primarily in income-generating real estate Ringgit Malaysia Securities Commission Malaysia Guidelines on Unit Trust Funds issued by the Securities Commission Malaysia, and shall include any amendments and revisions contained therein or made pursuant thereto Deutsche Trustees Malaysia Berhad Deutsche Bank (Malaysia) Berhad The person(s) for the time being registered under the provision of the Deed as a holder of units and includes the Manager and joint holders The term US Person means: a) a citizen or resident of the United States (US); b) a US partnership; and c) a US corporation Redemptions or repurchases of units of the Fund 2 AmAsia Pacific REITs Plus

10 CORPORATE DIRECTORY MANAGER AmInvestment Services Berhad Company number: A Registered office 22nd Floor, Bangunan AmBank Group No.55, Jalan Raja Chulan Kuala Lumpur Tel: (03) Head office 9th Floor, Bangunan AmBank Group No.55, Jalan Raja Chulan Kuala Lumpur Tel: (03) Fax: (03) aminvest@ambankgroup.com Website: Board of Directors Kok Tuck Cheong Professor Dr. Annuar Md. Nassir (Independent) Dato Dr. Mahani Zainal Abidin (Independent) Lee Siang Lee Siang Chin (Independent) Datin Maznah Mahbob Harinder Pal Singh Investment Committee Professor Dr. Annuar Md. Nassir (Independent) Dato Dr. Mahani Zainal Abidin (Independent) Lee Siang Lee Siang Chin (Independent) Harinder Pal Singh Audit Compliance Committee Kok Tuck Cheong Dato Dr. Mahani Zainal Abidin (Independent) Professor Dr. Annuar Md. Nassir (Independent) Lee Siang Lee Siang Chin (Independent) Secretary Chin Woon Li (MAICSA ) 22nd Floor, Bangunan AmBank Group No.55, Jalan Raja Chulan Kuala Lumpur MANAGER'S DELEGATE (as fund accounting and valuation service provider) Deutsche Bank (Malaysia) Berhad Company number: W Registered office Level 18, Menara IMC No. 8, Jalan Sultan Ismail Kuala Lumpur Tel: (03) Fax: (03) Business Office Level 18-20, Menara IMC No. 8, Jalan Sultan Ismail Kuala Lumpur Tel: (03) Fax: (03) INVESTMENT MANAGER AmInvestment Management Sdn Bhd Company number: T Registered office 22nd Floor, Bangunan AmBank Group No. 55, Jalan Raja Chulan Kuala Lumpur Business office 9th & 10th Floor, Bangunan AmBank Group No. 55, Jalan Raja Chulan Kuala Lumpur Tel: (03) Fax: (03) TRUSTEE Deutsche Trustees Malaysia Berhad Company number: H Registered office/business office Level 20, Menara IMC No. 8, Jalan Sultan Ismail Kuala Lumpur Tel: (03) Fax: (03) TRUSTEE S DELEGATE (CUSTODIAN) Deutsche Bank (Malaysia) Berhad Company number: W Registered office Level 18, Menara IMC No. 8, Jalan Sultan Ismail Kuala Lumpur Tel: (03) Fax: (03) AmAsia Pacific REITs Plus 3

11 Business office Level 18-20, Menara IMC No. 8, Jalan Sultan Ismail Kuala Lumpur Tel: (03) Fax: (03) TAXATION ADVISOR Deloitte KassimChanTax Services Sdn Bhd Company number: T Level 19, Uptown 1 No.1, Jalan SS21/58, Damansara Uptown Petaling Jaya, Selangor Tel: (03) Fax: (03) AUDITORS Ernst &Young AF 0039 Level 23A, Menara Milenium Jalan Damanlela Pusat Bandar Damansara Kuala Lumpur Tel: (03) Fax: (03) Federation of Investment Managers Malaysia (FiMM) , 7th Floor, PNB Damansara No. 19, Lorong Dungun, Damansara Heights Kuala Lumpur Tel: (03) Fax: (03) info@fimm.com.my Website: 4 AmAsia Pacific REITs Plus

12 KEY DATA OF THE FUND The description on the following pages introduces you to AmAsia Pacific REITs Plus* and helps you decide whether AmAsia Pacific REITs Plus* best fits your investment needs. Keep in mind, however that no fund can guarantee it will meet its investment objective at all times, and no fund should be relied upon as complete investment program. THIS SECTION IS ONLY A SUMMARY OF THE SALIENT INFORMATION ABOUT THE FUND AND INVESTORS SHOULD READ AND UNDERSTAND THE WHOLE PROSPECTUS BEFORE MAKING AN INVESTMENT DECISION. FUND INFORMATION Name of Fund Category of Fund Type of Fund Investment Objective AmAsia Pacific REITs Plus* Real Estate (REITs) Income & Growth The Fund aims to provide regular income* and to a lesser extent capital appreciation over the medium to long term** by investing in real estate investment trusts (REITs) and equities in the real estate sector. Note: * Income distribution (if any) could be in the form of units or cash. For further details on the mode of income distribution, please refer to page 28. **Medium to long term refers to an investment horizon of at least three (3) years. Investment Strategy Any material change to the investment objective of the Fund would require Unit Holders approval. The Fund seeks to achieve its investment objective by investing a minimum of 70% of its NAV in REITs and a maximum of 29% of its NAV in listed equities in the real estate sector, which are listed in the Asia Pacific region, which includes but not limited to Australia, Hong Kong, Indonesia, Japan, Malaysia, New Zealand, Philippines, Singapore, South Korea, Taiwan and Thailand. In addition to country diversification, the Fund will also diversify into different REITs sub-sectors such as residential, commercial and industrial. The Fund will also hold a minimum of 1% of its NAV in Liquid Assets. The Investment Manager employs an active allocation strategy, which means the asset allocation decisions will be made after reviewing the macroeconomic trends and REITs market outlook of * The word Plus is used in the Fund s name as the Fund is a continuation of the AmAsia Pacific REITs and the Fund may invest in listed equities in the real estate sector. Prospective Unit Holders should read and understand the contents of the Prospectus and, if necessary, consult their adviser. Unit prices and distribution payable, if any, may go down as well as up. There are fees and charges involved and prospective Unit Holders are advised to consider the fees and charges before investing in the Fund. AmAsia Pacific REITs Plus 5

13 the respective countries in the Asia Pacific region. The Investment Manager will be targeting REITs that have been generating regular income returns with the potential for capital growth. In evaluating the suitability of REITs for investment, the Investment Manager will conduct a review of the track record of the REIT, investment portfolio of the REIT, financial status, income distribution policy, cost factors and other factors deemed important by the Investment Manager. For equities, the Investment Manager will employ bottom-up security selection strategy and focus on undervalued companies which demonstrate sound corporate fundamentals and are expected to provide dividends yield above the market average on a medium to long term* basis. The Investment Manager may also select companies with improving stock valuation fundamentals and growth at reasonable valuations. Stock valuation fundamentals considered are earnings per share growth rate, return on equity, price earnings ratio and price to book multiples. Equities in real estate sector include real estate investment companies that derive revenue from rental income and/or capital appreciation from real estate as well as real estate development companies. Note: *Medium to long term refers to an investment horizon of at least three (3) years. Asset Allocation 70% - 98% of the Fund s NAV will be invested in REITs; 1% - 29% of the Fund NAV in real estate listed equities; and 1% - 29% of the Fund s NAV in Liquid Assets. Base Currency of the Fund Performance Benchmark Ringgit Malaysia S&P Pan Asia Property Index (obtainable via Specific Risks associated with the Fund Investor Profile 6 AmAsia Pacific REITs Plus Note: The risk profile of the Fund may not be the same as the risk profile of the performance benchmark. The performance benchmark is only a measurement of the Fund s performance and there is no guarantee it will be achieved. Risks associated with investment in REITs and real estate equities Securities risk Concentration risk Income distribution risk Country risk Currency risk Regulatory and legal risk Taxation risk The Fund is suitable for investors who: wish to have investment exposure in real estate sector through a diversified portfolio of REITs and real estate equities in Asia Pacific region. Portfolio diversification is Prospective Unit Holders should read and understand the contents of the Prospectus and, if necessary, consult their adviser. Unit prices and distribution payable, if any, may go down as well as up. There are fees and charges involved and prospective Unit Holders are advised to consider the fees and charges before investing in the Fund.

14 obtained by investing in REITs of various sub-sectors (for example residential, commercial and industrial) and real estate equities; and seeks regular income* and to a lesser extent capital appreciation over the medium to long term**. Note: * Income distribution (if any) could be in the form of units or cash. For further details on the mode of income distribution, please refer to page 28. **Medium to long term refers to an investment horizon of at least three (3) years. Initial Offer Period A period commencing from 1 July 2013 to 21 July Initial Offer Price RM per unit Financial Year End 31 May Income Distribution Subject to availability of income, distribution will be paid at least once a year. FEES AND CHARGES Charges This table describes the charges that you may directly incur when you buy or redeem units of the Fund: Entry Charge The maximum rate imposed by each distribution channel during the life of this Prospectus is as follows: Distribution Channel Direct Sales IUTA Maximum entry charge Up to 5.00% of NAV per unit of the Fund Up to 5.00% of NAV per unit of the Fund All entry charges will be rounded up to two (2) decimal points. There will be no entry charge payable by AHB staff. Investors are advised that they may negotiate for lower entry charge prior to the conclusion of sales. Exit Penalty The Manager reserves the right to waive or reduce the entry charge from time to time at its absolute discretion. There will be no exit penalty charged by the Fund. Prospective Unit Holders should read and understand the contents of the Prospectus and, if necessary, consult their adviser. Unit prices and distribution payable, if any, may go down as well as up. There are fees and charges involved and prospective Unit Holders are advised to consider the fees and charges before investing in the Fund. AmAsia Pacific REITs Plus 7

15 Other Charges Other direct charges that you may incur are as follows: Transfer fee Transfer of the Fund units is allowed at the Manager's discretion, subject to a fee of RM50 per transfer. Bank charges/fees Bank charges/fees are incurred only upon withdrawals. Switching fee For switches between any of the funds managed by AmInvestment Services, a maximum of 6% may be charged on the amount switched, per switch. Fees and Expenses This table describes the fees and expenses that you may indirectly incur when you invest in the Fund: Annual Management Fee Up to 1.50% p.a. of the NAV of the Fund. Annual Trustee Fee Up to 0.08% p.a. of the NAV of the Fund, subject to a minimum fee of RM10,000 p.a. Fund Expenses A list of the Fund expenses directly related to the Fund are as follows : audit fees; tax agent s fees; printing and postages of annual and interim reports; bank charges; investment committee fee for independent members; lodgement fee for Fund s reports; commission paid to brokers/dealers (if any); sub-custodian fee in respect of any foreign investments of the Fund; and other expenses as permitted by the Deed. Please refer to pages 17 to 19 for details on Fees, Charges and Expense. Prospective Unit Holders should read and understand the contents of the Prospectus and, if necessary, consult their adviser. Unit prices and distribution payable, if any, may go down as well as up. There are fees and charges involved and prospective Unit Holders are advised to consider the fees and charges before investing in the Fund. 8 AmAsia Pacific REITs Plus

16 TRANSACTION DETAILS Minimum Initial Investment Minimum Additional Investment Minimum Withdrawal Minimum Holding/ Balance RM1,000 or lower amount as the Manager may from time to time decide. RM500 or lower amount as the Manager may from time to time decide. 500 units or such units as the Manager may from time to time decide. 1,000 units or such units as the Manager may from time to time decide. Switching Facility Switching is allowed between funds managed by AmInvestment Services Berhad subject to a fee. Transfer Facility Transfer is only allowed at the Manager s discretion subject to a fee. Cooling-off Rights If you make an investment and later decide that the investment does not suit your needs, you may withdraw your money within the cooling-off period. You should be aware that the cooling-off right is only available on your first investment with the Manager. Subsequent investments will not enjoy this right. The cooling-off right is not available to corporation/institution, staff of the Manager and persons registered to deal in unit trust funds of the Manager. Cooling-off Period You may exercise cooling-off rights within six (6) Business Days of making the investment. This is however, only available on your first investment with the Manager. Please refer to pages 21 to 27 for details on how to make an application or withdrawal. OTHER INFORMATION Current Deed The Deed relating to the Fund is dated 3 December Supplementary Deed Nil THERE ARE FEES AND CHARGES INVOLVED AND INVESTORS ARE ADVISED TO CONSIDER THEM BEFORE INVESTING IN THE FUND. UNIT PRICES AND DISTRIBUTIONS PAYABLE, IF ANY, MAY GO DOWN AS WELL AS UP. FOR INFORMATION CONCERNING CERTAIN RISK FACTORS WHICH SHOULD BE CONSIDERED BY PROSPECTIVE INVESTORS, SEE RISK FACTORS COMMENCING ON PAGE 10. Prospective Unit Holders should read and understand the contents of the Prospectus and, if necessary, consult their adviser. Unit prices and distribution payable, if any, may go down as well as up. There are fees and charges involved and prospective Unit Holders are advised to consider the fees and charges before investing in the Fund. AmAsia Pacific REITs Plus 9

17 RISK FACTORS All investments carry some degree of risk. The role of the investment manager in a unit trust fund is to choose assets and mitigate risk as much as possible while working to achieve the objective of the fund. Therefore, before making an investment decision, an investor should consider the different types of risks that may affect the unit trust fund or the investor individually. GENERAL RISKS OF INVESTING IN THE FUND Market Risk This is the risk of security prices falling in response to general market factors. Market risk also includes adverse market conditions in overseas markets which may affect local markets and the Fund. Factors influencing the performance of markets locally and globally include: (a) Economic factors, including changes in interest rates, inflation and foreign exchange rates; (b) Socio-political and regulatory factors; and (c) Broad investor sentiment. Inflation Risk This is the risk that investors investment in the Fund may not grow or generate income at a rate that keeps pace with inflation. This would reduce investors purchasing power even though the value of the investment in monetary terms has increased. Investment Manager Risk This is the risk of the Investment Manager making poor investment decisions, which may adversely affect the performance of the Fund. Mismatch Risk The choice of investing in the Fund is made at the discretion of the investors. However, there is a risk that the Fund may not be suitable for the needs and circumstances of the investors. Loan/Financing Risk This risk occurs when you take a loan/financing to finance your purchase of the Fund. The inherent risk of investing with borrowed money includes the inability for you to service the loan repayments and the adverse impact of an increase in interest rates on the loan repayments. In addition, an investor may also be subjected to higher loan repayments in the event that interest rates increase. In the event units are used as collateral, an investor may be required to provide additional collateral if the unit prices fall beyond a certain level due to market conditions. If the investor fails to honor the additional collateral within the prescribed time, the units may be sold towards settling the loan. Non-Compliance Risk This is the risk of the Manager, the Investment Manager or the Trustee not complying with internal policies, the Deed or guidelines issued by the regulators, which may adversely affect the performance of the Fund or cause inconvenience to the Unit Holders. For example, noncompliance could occur due to internal factors such as human error or weaknesses in operational and administrative processes and systems. Non-compliance risk is mitigated by having sufficient internal controls in place and dedicated compliance procedures to ensure compliance with all applicable requirements at all times to protect the interest of the Unit Holders. 10 AmAsia Pacific REITs Plus

18 SPECIFIC RISKS UNIQUELY ASSOCIATED WITH THE INVESTMENT PORTFOLIO OF THE FUND Risks Associated with investment in REITs and real estate equities Investing in REITs and real estate equities involves many of the same risks associated with direct ownership of real estate, including but not limited to possible declines in real estate s value, increase in interest rates and real estate borrowing costs, changes in property taxes, higher operating expenses, damages from natural or man-made disasters and fall in market rental rates. In addition, some real estate companies, including REITs, may utilize leverage. Financial leverage or debt financing (i.e. the use of borrowed money to increase exposure to investments without an increase in equity capital) may magnify both gains and losses of the REITs or profit and loss of companies in real estate sector. Consequently, these REITs and real estate equities prices may exhibit higher price volatility and thus, increase the volatility of the Fund s NAV. Securities Risk This is the risk of security prices fluctuating due to circumstances affecting individual companies and in response to market conditions. This may result in the value of securities that the Fund holds to decline over short or extended periods. Accordingly, the value of an investor s investment in the Fund may decrease. Securities risk is mitigated by careful selection of securities as well as through diversification. Concentration Risk As the Fund invests only in real estate sector, this Fund would be significantly affected by developments in this sector. Because the Fund s investment is limited to a relatively narrow segment of the economy, the Fund s investment may not be as diversified as other funds. This Fund may be more volatile than other funds and therefore its portfolio value can increase or decrease more rapidly compared to other funds. This risk is mitigated by careful country allocation and diversification (diversify into different REITs sub-sectors such as residential, commercial and industrial) by the Investment Manager. Income Distribution Risk The performance of the Fund may be such that there is insufficient realized return in the Fund for distribution purposes. Under such circumstances, the Fund may not be able to distribute income. As such, it should be noted that the distribution of income is not guaranteed. Country Risk As the Fund invests in REITs and real estate equities within the Asia Pacific region, the Fund may be affected by the changes in a country s economic fundamentals, social and political stability, currency movements and foreign investment policies. These factors may have an impact on the price of the REIT and equities; and consequently may also affect the Fund s NAV. To mitigate country risk, the Investment Manager will select REITs and real estate equities that spread across various countries. The decision on diversification will be based on continuous fundamental research and analysis of the Asia Pacific region and global markets. Currency Risk The Fund invests primarily in REITs and real estate equities listed in the Asia Pacific region, which includes but not limited to Australia, Hong Kong, Indonesia, Japan, Malaysia, New Zealand, Philippines, Singapore, South Korea, Taiwan and Thailand. As such, the Fund would be exposed to currency risk, which is the risk associated with investments that are denominated in foreign currencies. When foreign currencies depreciate against the RM, these investments will suffer currency losses. This is in addition to capital gain/losses in the investments. This risk is reduced through investing in a wide range of foreign currency denominated asset thus diversifying the risk of single currency exposure. AmAsia Pacific REITs Plus 11

19 Regulatory and Legal Risk The value of the Fund s investments may be affected by uncertainties such as political developments, changes in government policies, changes in taxation, restrictions on investment and currency repatriation and other developments in the law and regulations of the Asia Pacific countries in which investments are made. Furthermore, the legal infrastructure and accounting, auditing and reporting standards in certain countries in which investment may be made may not provide the same degree of investor protection or information to investors as would generally apply in more developed securities markets. In addition, in some countries, direct investments in securities may be prohibited and restricted due to regulatory requirements, whereby the Investment Manager is required to obtain the necessary licenses before investing into the country. These limitations may limit the Fund s access to securities and may increase the overall cost of investing in securities in such countries. Please take note that the Investment Manager is unaware of any limitations and restrictions, except for the requirement to obtain an investor s identification number before investing in South Korea and Taiwan. As such, the Investment Manager will ensure the identification number is obtained. Taxation Risk Investors should also be aware that the proceeds from the sale of securities in some markets or the receipt of any dividends and other income may be subject to tax, levies, duties or other charges imposed by the authorities in that market, including taxation levied by withholding at source. Tax law and practice in certain countries may not be clearly established. It is therefore possible that the current interpretation of the law or understanding of practice might change, or that the law might be changed with retrospective effect, to the detriment of the Fund. Note: The abovementioned risks which investors should consider before investing into a unit trust fund should not be considered to be an exhaustive list. Investors should be aware that investments in the Fund may be exposed to other unforeseeable risks from time to time. 12 AmAsia Pacific REITs Plus

20 THE FUND S DETAILED INFORMATION a. Category/ type Real Estate (REITs) / Income & Growth b. Investment Objective The Fund aims to provide regular income* and to a lesser extent capital appreciation over the medium to long term** by investing in real estate investment trusts (REITs) and equities in the real estate sector. Note: * Income distribution (if any) could be in the form of units or cash. For further details on the mode of income distribution, please refer to page 28. **Medium to long term refers to an investment horizon of at least three (3) years. Any material change to the investment objective of the Fund would require Unit Holders approval. c. Investment Strategy The Fund seeks to achieve its investment objective by investing a minimum of 70% of its NAV in REITs and a maximum of 29% of its NAV in listed equities in the real estate sector, which are listed in the Asia Pacific region, which includes but not limited to Australia, Hong Kong, Indonesia, Japan, Malaysia, New Zealand, Philippines, Singapore, South Korea, Taiwan and Thailand. In addition to country diversification, the Fund will also diversify into different REITs sub-sectors such as residential, commercial and industrial. The Fund will also hold a minimum of 1% of its NAV in Liquid Assets. The Investment Manager employs an active allocation strategy, which means the asset allocation decisions will be made after reviewing the macroeconomic trends and REITs market outlook of the respective countries in the Asia Pacific region. The Investment Manager will be targeting REITs that have been generating regular income returns with the potential for capital growth. In evaluating the suitability of REITs for investment, the Investment Manager will conduct a review of the track record of the REIT, investment portfolio of the REIT, financial status, income distribution policy, cost factors and other factors deemed important by the Investment Manager. For equities, the Investment Manager will employ bottom-up security selection strategy and focus on undervalued companies which demonstrate sound corporate fundamentals and are expected to provide dividends yield above the market average on a medium to long term* basis. The Investment Manager may also select companies with improving stock valuation fundamentals and growth at reasonable valuations. Stock valuation fundamentals considered are earnings per share growth rate, return on equity, price earnings ratio and price to book multiples. Equities in real estate sector include real estate investment companies that derive revenue from rental income and/or capital appreciation from real estate as well as real estate development companies. Note: *Medium to long term refers to an investment horizon of at least three (3) years. d. Risk Management Strategy As part of its risk management strategy, the Fund is managed such that there is sufficient portfolio diversification i.e. spreading risk across more securities in terms of REITs subsectors (for example, residential, commercial and industrial) and equities listed in various countries. Notwithstanding the aforesaid, in times of adversity in REITs and/or equities markets, the Investment Manager may reduce its portion of higher risk assets such as AmAsia Pacific REITs Plus 13

21 REITs and/or equities and increase its asset allocation to lower risk assets, (i.e. to increase Liquid Assets allocation beyond the stipulated asset allocation limit), to safeguard the investment portfolio of the Fund. This Fund may use derivatives for the purpose of hedging (subject to SC Guidelines) if it is deemed as necessary to do so. In addition, the risk management team applies rigorous risk management controls over the investment portfolio to ensure adherence to investment objectives and investment parameters. The risk management team is responsible for monitoring and controlling risks and reports to the board of directors. e. Asset Allocation 70% - 98% of the Fund s NAV will be invested in REITs; 1% - 29% of the Fund NAV in real estate listed equities; and 1% - 29% of the Fund s NAV in Liquid Assets. f. Performance Benchmark S&P Pan Asia Property Index (obtainable via Note: The risk profile of the Fund may not be the same as the risk profile of the performance benchmark. The performance benchmark is only a measurement of the Fund s performance and there is no guarantee it will be achieved. g. Investor Profile The Fund is suitable for investors who: wish to have investment exposure in real estate sector through a diversified portfolio of REITs and real estate equities in Asia Pacific region. Portfolio diversification is obtained by investing in REITs of various sub-sectors (for example, residential, commercial and industrial) and real estate equities; and seeks regular income* and to a lesser extent capital appreciation over the medium to long term**. Note: *Income distribution (if any) could be in the form of units or cash. For further details on the mode of income distribution, please refer to page 28. **Medium to long term refers to an investment horizon of at least three (3) years. h. Permitted Investments of the Fund As permitted under the Deed and the requirements of the SC, the Fund will invest in any of the following investments: i. collective investment schemes which include listed REITs, listed or traded on local and/or foreign markets where the regulatory authority is a member of the International Organization of Securities Commission (IOSCO); ii. transferable securities and money market instruments admitted to official listing on a stock exchange or a regulated market which operates regularly and is recognized and opened to the public; iii. deposits with financial institutions which are repayable on demand or have the right to be withdrawn, and maturing in no more than 12 months; iv. Liquid Assets; v. financial derivative instruments, including but not limited to options, futures contracts, forward and swaps for hedging purpose; and vi. any other kind of investment or investments as permitted by the SC or any other relevant authorities from time to time, which is in line with the investment objective of the Fund. 14 AmAsia Pacific REITs Plus

22 i. Investment Restrictions/Limits A. Investment Spread Limits i. The value of the Fund s investment in units/shares of any collective investment scheme must not exceed 20% of the Fund s NAV; ii. the value of the Fund s placement in deposits with any single institution must not exceed 20% of the Fund s NAV; iii. the Fund shall invest no more than 10% of its NAV in transferable securities iv. and/or money market instruments issued by any single issuer; the Fund may invest in deposits with financial institutions provided their maturity is not more than 12 months and the value of the deposit placement with any single institution must not exceed 20% of the Fund s NAV; v. for exposure in derivatives: The exposure to the underlying assets must not exceed the investment spread limits stipulated in the SC s Guidelines; The exposure to a single counterparty in an OTC derivative transaction shall not exceed 10% of the Fund s NAV; and The Fund s exposure from derivatives position should not exceed the Fund s NAV. vi. the aggregate value of the Fund s investment in transferable securities, money market instruments, deposits and OTC derivatives issued by or placed with any group of companies must not exceed 20% of the Fund s NAV. B. Investment Concentration Limits i. The Fund s investment in collective investment schemes must not exceed 25% of the units of any single collective investment scheme; ii. the Fund s investment in shares must not exceed 10% of the shares issued by any single issuing body; and iii. the Fund s investment in money market instruments must not exceed 10% of the instruments by any single issuing body. j. Valuation of Assets Valuation of the Fund will be carried out by the Manager in a fair manner in accordance with applicable laws and guidelines. The valuation bases for the permitted investments of the Fund are as below: i. Listed securities Valuation is based on the last market price traded from respective exchanges. However, if (a) a valuation based on the market price does not represent the fair value of the securities, for example during abnormal market conditions; or (b) no market price is available, including in the event of a suspension in the quotation of the securities for a period exceeding 14 days, or such shorter period as agreed by the Trustee, then the securities should be valued at fair value, as determined in good faith by the Manager or its delegate, based on the methods or bases approved by the Trustee after appropriate technical consultation. ii. Money market instruments and deposits The value of any investment in non-tradable Liquid Assets, money market instruments and deposits placed with financial institutions shall be determined by each Business Day, with reference to the principal value of such investments and the accrued income for the relevant period. For tradable Liquid Assets and money market instruments (such as negotiable certificates of deposits and promissory AmAsia Pacific REITs Plus 15

23 notes), the valuation is based on marked to market prices based on average of three (3) quotations by financial institutions daily. iii. iv. Units in collective investment schemes The value of any investment in collective investment scheme which are quoted on an approved exchange shall be based on the last done market price of the respective exchange. When investing in unlisted collective investment schemes, the value shall be determined by reference to the last published net asset value per unit (less redemption fee, if any) for that collective investment scheme. Derivatives Market parameters such as volatility, dividend payout and interest rates, though not exhaustive, are some of the variables used to value the derivatives itself. The Manager shall ensure that the investment is valued at fair value, as determined in good faith by the Manager and valued by counterparty at least once a week. The methods or bases of valuation will have to be verified by the auditor of the Fund and approved by the Trustee. 16 AmAsia Pacific REITs Plus

24 FEES, CHARGES AND EXPENSES CHARGES The charges that you may directly incur when you buy or redeem units of the Fund are as follows: (a) Entry charge The maximum rate imposed by each distribution channel during the life of this Prospectus is as follows: Distribution Channel Direct Sales IUTA Maximum entry charge Up to 5.00% of NAV per unit of the Fund Up to 5.00% of NAV per unit of the Fund All entry charges will be rounded up to two (2) decimal points. There will be no entry charge payable by AHB staff. Investors are advised that they may negotiate for lower entry charge prior to the conclusion of sales. The Manager reserves the right to waive or reduce the entry charge from time to time at its absolute discretion. (b) Exit penalty There will be no exit penalty charged by the Fund. Please refer to page 21 for illustration on how the charges directly incurred by investors when purchasing or redeeming units of the Fund are calculated. OTHER CHARGES (a) (b) (c) Transfer fee You can transfer all or some of your investments to another person by completing a transfer form that is signed by both parties (transferor and transferee). A specimen signature card is also required to be filled by the transferee. A fee of RM50 will be charged to the transferor for each account transferred. However, in the case of a deceased person's account, the transfer fee of RM50 will be waived. Bank charges/fees Bank charges/fees are incurred only upon withdrawals. Switching fee For switches between any of the funds managed by AmInvestment Services, a maximum of 6% may be charged on the amount switched, per switch. AmAsia Pacific REITs Plus 17

25 ONGOING FEES AND EXPENSES The fees and expenses that you may indirectly incur are as follow: (a) Annual management fee An annual management fee of up to 1.50% p.a. of the Fund s NAV is charged to the Fund. The management fee is calculated on a daily basis and will be paid monthly. An illustration of the calculation and apportionment of the daily management fee is as follows: RM Investment 98,000,000 Liquid assets (net of receivables & payables) 2,000,000 NAV 100,000,000 Management fee for the day is calculated as follows: (Investments + Liquid Assets) x 1.50% Numbers of days in a year 100,000,000 x 1.50% = RM 4, (rounded to 2 decimal points) 365 days (b) Trustee s fee The Trustee is entitled to an annual Trustee fee for acting as trustee to safeguard the interest of Unit Holders and as custodian of the Fund s assets. This fee is calculated daily and paid monthly. The Trustee s fee is up to 0.08% p.a. of the NAV of the Fund, subject to a minimum fee of RM10,000 p.a. An illustration of the Trustee s fee per day is as follows: Assuming the NAV of the Fund is RM100,000,000 and the Trustee s fee is 0.08% p.a. of the NAV of the Fund, then the daily accrued Trustee s fee would be:- Trustee's fee for the day = NAV of the Fund x Trustee's fee rate for the Fund (%) x 1/365 days = RM 100,000, x 0.08% p.a. x 1/365 = RM (rounded to 2 decimal points) (c) Fund Expenses The Manager and Trustee may be reimbursed out of the Fund for any costs reasonably incurred in the administration of the Fund. The Fund s expenses currently include but are not limited to audit fees, tax agent s fees, printing and postages of annual and interim reports, bank charges, investment committee fee for independent members, lodgment fee for Fund s reports, commission paid to brokers/dealers (if any), sub-custodian fee in respect of any foreign investments of the Fund and other expenses as permitted by the Deed. 18 AmAsia Pacific REITs Plus