MANULIFE FLEXI GROWTH & INCOME FUND

Transcription

1 Product Highlights Sheet dated 2 October 2018 MANULIFE FLEXI GROWTH & INCOME 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 Flexi Growth & Income 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 the 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 FLEXI GROWTH & INCOME FUND BRIEF INFORMATION ON THE PRODUCT 1. What is the Fund about? The Fund is a mixed assets fund that seeks to provide income* and capital appreciation over a long term period. *Income distribution (if any) may be made in the form of cash or additional Units reinvested into the Fund. Note: Long-term refers to a period of 5 years or more. 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: are willing to accept higher level of risk; seek capital appreciation; and seek steady income stream. 3. What am I investing in? Fund Category Mixed Assets Investment Strategy and Policy KEY PRODUCT FEATURES The Fund invests in a diversified portfolio of equities and fixed income securities. Manulife Asset Management Services Berhad (the Manager ) aims to achieve the objective of the Fund by adopting a flexible asset allocation strategy depending on the Manager s tactical view. The Fund will concentrate on investing in asset classes which offer prospects of capital growth and income distribution. There are no fixed sectoral weightings in the allocation of assets for the Fund. The Fund may invest up to 98% of the Fund s net asset value ( NAV ) in a single asset class of equities or fixed income securities (including money market instruments), and a minimum of 2% of the Fund s NAV in liquid assets. The Fund may invest up to 30% of its NAV in the Asia region, including but not limited to Singapore, Indonesia, Thailand, the Philippines, India, Hong Kong, China, Japan, South Korea, Taiwan and Vietnam, or any other countries in the Asia region where the regulatory authority is an ordinary or associate member of the International Organization of Securities Commissions. The Manager s strategies on equity investment consist of the following: Adopting a bottom-up approach in identifying companies with potential growth and steady income distribution during the stock selection process. Value-based criteria which identify fundamentally sound companies. These would include those with low valuations relative to their industry peers and those trading at discounts relative to their intrinsic, book or replacement value, focusing on fundamentally sound companies, which the prices of their stock have experienced sharp decline. The Manager strongly believes in internal research. The Manager conducts in-depth fundamental research on financial health, industry prospects and management quality of the company before investing. The Manager also adopts an active strategy in meeting the objective of the Fund and focuses on the company s capital structure, intrinsic value, cash flow, replacement costs, revised net asset value (RNAV), management and potential growth trend. Although the Fund is actively managed, frequency of trading will depend on market opportunities and valuations. The Manager s strategies on fixed income securities and money market instruments consist of the following: Invest in highly liquid fixed income securities # and money market instruments. The liquidity of the fixed income securities and money market instruments will depend on market demand and supply for an issuer and/or tenure of the instruments and/or credit ratings of the instruments which in turn will depend on prevailing economic and market conditions. The liquid nature of fixed income securities and money market instruments allows the Manager to easily switch to equities when the Manager sees investment opportunities in the equity market. The Fund may employ derivatives such as foreign exchange forward contracts and/or cross currency swaps for hedging purposes.

3 # Highly liquid fixed income securities means fixed income securities which are actively traded. Asset Allocation Asset Class Allocation (% of the Fund s NAV) Equities 0% to 98% Fixed income securities (including money market instruments) 0% to 98% Liquid assets which comprise of placements in deposits with financial institutions At least 2% Benchmark Launch Date 18 August 2016 Financial Year End Distribution Policy Total return of 8% per annum. You should note that this is not a guaranteed return but a benchmark against which the Fund s performance may be measured. The Fund may or may not achieve the target return of 8% per annum in any particular financial year but targets to achieve this growth over the long term. 31 May Subject to the availability of income, the Fund will distribute income on a semi-annual basis. 4. Who am I investing with? Manager/ Fund Manager Manulife Asset Management Services Berhad Trustee HSBC (Malaysia) Trustee Berhad KEY RISKS 5. What are the key risks associated with this Fund? Specific Equity Changes to the management or business performance of a company, consumer tastes and demand, Risk lawsuits, competitive operating environment and corporate governance in a specific company in which the Fund invests may cause fluctuations in the value of that company. The fluctuation of the value of the equities of the company invested by the Fund can affect the overall NAV of the Fund. Credit/Default Risk Interest Rate Risk Investments in fixed income securities are subject to the risk of untimely payments on income and/or distribution. Whereas, investments in liquid assets and money market instruments are subject to the risk of untimely payments from realisation of investments upon maturity. The default payments will ultimately affect the overall NAV of the Fund. Fixed income securities are sensitive to movements in interest rate. When interest rates rise, generally the value of fixed income securities will fall and vice versa. Should the Fund hold the fixed income securities till maturity, the value of the fixed income securities shall not be affected at maturity because the principal of the fixed income securities would fully reflect its principal value, provided there is no default. Currency Risk Country Risk Derivative Risk In an interest rate uptrend environment, a company s growth and future cash flow expectation will be reduced due to the increase of borrowing cost. Hence, the valuation of the company will be affected and subsequently reflected in its share price. If the Fund invests in equities of such company, the NAV of the Fund will also be affected. This risk is associated with investments denominated in currencies different from the base currency of the Fund. Whilst the Fund is denominated in RM, investments denominated in foreign currencies will cause the Fund to be exposed to currency risks. When foreign currencies depreciate against RM, it will affect the NAV of the Fund. The Fund will have exposure to countries in the Asia region. As such, the Fund will be exposed to the risks applicable to each of the countries the Fund invested in. The Manager will give due consideration to the risk factors such as currency stability, political, regulatory, legal and economic environment before any investments are made in these countries. Depending on prevailing market circumstances at a particular point in time, the Manager may choose to use financial derivatives for hedging and risk reduction purposes to protect the Fund from anticipated detrimental movements in the underlying markets or investments. While the use of derivatives can be beneficial, it also involves special risks, including but not limited to: the risk of loss from default by the counterparty, typically as a consequence of insolvency or failed settlement; the risk of the supply and demand factors in the derivatives market and in other related markets impacting the liquidity of the derivatives market adversely, which in turn would adversely affect derivatives pricing and the Fund.

4 FEES AND CHARGES 6. What are the fees and charges involved? Charges when buying units of the Fund Sales Charge Repurchase Charge Switching Fee Transfer Fee IUTA Manager Distributors *The charges are negotiable. Maximum Sales Charge on the NAV per Unit of the Fund* Up to 5.50% 1% of the NAV per unit if a request for redemption is made within six (6) months from the date of subscription. 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 1.55% of the NAV per annum calculated and accrued on a daily basis. Trustee fee Up to 0.06% of the NAV per annum (excluding foreign custodian fees and charges) calculated and accrued on a daily basis. All charges and fees (e.g. sales charge, switching fee, transfer fee, management fee, trustee fee and any other relevant fee(s) and/or charge(s), whichever applicable, may be subject to tax that may be introduced by the Government of Malaysia from time to time, at the prevailing rate. The Manager, the Trustee and/or other service providers reserve the right to collect from you and/or the Fund an amount equivalent to the tax payable for all charges and fees, whichever applicable. Fees and charges disclosed are exclusive of any taxes. 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? Repurchasing an investment Unit holders may repurchase 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 repurchase proceeds will be paid within ten (10) calendar days from the date on which the request to repurchase is received by the Manager. Please refer to item 6 above for repurchase charge levied on the repurchase of units. Minimum repurchase 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 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. For purchase/ repurchase transaction made via IUTAs, the transaction is subject to the terms and conditions of the respective IUTAs.

5 FUND PERFORMANCE 9. Average Total Return for Financial Year Ended 31 May 2018 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 (%) Manulife Flexi Growth & Income Fund (6.93) Benchmark Annual Total Return for Financial Year Ended 31 May 2018 Basis of calculation Annual Total Return = (NAV t NAV t-1) NAV t-1 NAV t denotes NAV at the end of the period. NAV t-1 denotes NAV at the beginning of the period. 2017* (%) 2018 (%) Manulife Flexi Growth & Income Fund (6.93) Benchmark For the financial year ended 31 May 2018, the Fund s return decreased by 6.93%, compared with its benchmark return of 8.00%. *For the period from 8 September 2016 (commencement date) to 31 May 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 (FYE) 2017* 2018 Portfolio Turnover Ratio ( PTR ) The PTR for FYE2018 is 1.61 times and was higher than FYE2017 mainly due to increase in trading activities. Gross distribution per unit (sen) Net distribution per unit (sen) Distribution was in the form of cash or reinvested into additional units in the Fund at the NAV per unit on the distribution date. *For the period from 8 September 2016 (commencement date) to 31 May THIS SECTION IS LEFT BLANK INTENTIONALLY.

6 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 Center (SIDREC): (a) via phone to : (b) via fax to : (c) via to : info@sidrec.com.my (d) via letter to : Securities Industries Dispute Resolution Center (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, Secretarial & Regulatory Affairs Federation of Investment Managers Malaysia , 6th Floor, Wisma Tune No. 19, Lorong Dungun Damansara Heights Kuala Lumpur.