PRODUCT HIGHLIGHTS SHEET. for. Affin Hwang Select Income Fund

Transcription

1 PRODUCT HIGHLIGHTS SHEET for Affin Hwang Select Income Fund RESPONSIBILITY STATEMENT This Product Highlights Sheet has been reviewed and approved by the directors or authorized committee or persons approved by the Board of Affin Hwang Asset Management Berhad (formerly known as Hwang Investment Management Berhad) 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 authorised the issuance of Affin Hwang Select Income Fund ( the Fund ) and a copy of this Product Highlights Sheet has been lodged with the Securities Commission Malaysia. The authorisation of the Fund and lodgement 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 Affin Hwang Asset Management Berhad (formerly known as Hwang Investment Management Berhad) 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. 1

2 This Product Highlights Sheet only highlights the key features and risks of this Fund. Investors are advised to request, read and understand the Master Prospectus of the Fund before deciding to invest. 1. What is this product about? PRODUCT HIGHLIGHTS SHEET AFFIN HWANG SELECT INCOME FUND BRIEF INFORMATION ON THE PRODUCT The Fund is an income and growth fund that aims to provide investors with a steady and regular income stream in the form of distributions over medium to longer term. 2. Who is this product suitable for? PRODUCT SUITABILITY This Fund is suitable for investors who:- are relatively conservative with a bias towards receiving regular income; want a meaningful medium to long term capital growth. 3. What am I investing in? KEY PRODUCT FEATURES Launch Date 6 January 2005 The Fund is an open-ended fund and may only be terminated in accordance Tenure with the Master Prospectus and the Deed. The Fund will invest primarily in fixed income instruments that provide regular Investment Strategy income as well as in high dividend yield stocks to enhance income and returns to the Fund. Asset Class % of NAV of the Fund Asset Allocation Fixed Income Instruments Minimum of 70% Equities Maximum of 30% Note: The Manager will also maintain a sufficient level of cash or cash equivalent for liquidity purposes. Distribution Policy The Fund endeavours to distribute income, if any, on a quarterly basis. However, the amount of income available for distribution may fluctuate from year to year. 2

3 Minimum Initial Investment * Minimum additional Investment * Minimum units held * RM1,000 RM units Note: Please refer to the Fund s Master Prospectus on further details of the Fund. 4. Who am I investing with? Relevant parties information: The Manager Manager s Delegate (Fund Management) The Trustee Trustee s Delegate (Local Custodian) Fund Accounting and Valuation Agent Auditor Tax Adviser Solicitor Affin Hwang Asset Management Berhad ( T) (formerly known as Hwang Investment Management Berhad) Not applicable HSBC (Malaysia) Trustee Berhad The Hong Kong and Shanghai Banking Corporation Limited (as Custodian) and assets held through HSBC Nominees (Tempatan) Sdn Bhd HSBC (Malaysia) Trustee Malaysia Berhad PricewaterhouseCoopers Ernst & Young Tax Consultants Sdn Bhd Messrs. Naqiz & Partners 5. What are the possible outcomes of my investment? This is a fixed income fund that invests in a diversified portfolio of fixed income instruments and equities in domestic and foreign markets. The performance of the Fund would be dependent on the fixed income instruments and equities markets that are investable by the Fund. The Fund s performance is reliant on the Manager s expertise in managing the Fund to meet its objective. The Fund s investment into fixed income instruments could potentially provide you with better than fixed deposit returns. However, unlike fixed deposits and money market instruments which generally provide a guarantee on capital invested and carry specific rate of return, the Fund s investments into fixed income instruments does not provide a guarantee on capital contributed nor does it guarantee a fixed rate of return. The Fund s investment into equities would to a great extent, be linked to the price movements of the equity markets. If the equities that are investable by the Fund performs well, the Fund s performance may reflect the same. However, should the equities that are investable by the Fund perform poorly, the Fund s performance may also be impacted negatively. * subject to change at the Manager s discretion 3

4 The Fund endeavours to distribute income, if any, on a quarterly basis. However, the amount of income available for distribution may fluctuate from year to year. Please note that the Fund does not guarantee your investment capital nor the returns from the Fund. KEY RISKS 6. What are the key risks associated with this product? General risks Operational risk - This risk refers to the possibility of a breakdown in the Manager s internal controls and policies. The breakdown may be a result of human error, system failure or may be fraud where employees of the Manager collude with one another. Market risk - Factors that affect the entire market place. Factors such as economic growth, political stability and social environment are some examples of conditions that have an impact on businesses, whether positive or negative. Fund management risk The Fund is a pooled investment. Investor s monies are co-mingled. By investing in pooled investment, investors rely on the experience and expertise of the Manager to make decision on their investments. Performance risk - There is no guarantee in relation to the investment returns or on the distribution to unit holders. Inflation risk The risk of potential loss in the purchasing power of investors investment due to a general increase of consumer prices. Inflation erodes the nominal rate of return giving investors a lower real rate of return. Liquidity risk The risk that the security/instrument invested in cannot be readily sold and converted into cash. This can occur when trading volume for the security is low and/or when there is a lack of demand for the security. Loan financing risk - An investor who intends to purchase Units of this Fund using borrowed/financed monies and pledging those Units as collateral for the borrowed/financed monies should be aware that if the price of the Units falls below the borrowed/financed amount, the lender may require the investor to provide additional forms of collaterals or pay additional amounts on top of the investor normal instalment. Currency risk - Currency risk is also known as foreign exchange risk. It is the risk associated with investments denominated in foreign currencies. When the foreign currencies fluctuate in an unfavourable movement against Ringgit Malaysia, the investments will face currency losses in addition to the capital gain/losses. Country risk The foreign investment of a Fund may be affected by risks specific to the country which it invests. Such risks include changes in a country s economic fundamentals, social and political stability, currency movements and foreign investment policies etc. Risk of non-compliance - This refers to the risk where the Manager does not comply with laws, rules, regulations, internal policies or the Deed. Note: Please refer to section 4.1 of the Master Prospectus on further detail of each risk. Specific risks Equity investment risk The risk associated with investing in a particular equity. The value of equity investment is mainly determined by its potential growth in earnings, sound management, etc. Failure to achieve the expected earnings would result in declining investment value which would in 4

5 turn affect the performance of the Fund. Equity-linked Instruments or Equity-linked Securities investment risk The pricing of Equitylinked Instruments or Equity-linked Securities will depend on the underlying equities that it is linked to, such as the growth and performance prospect of the underlying equities would consequentially affect the pricing of the Equity-linked Instruments or Equity-linked Securities. Credit/ Default risk The risk refers to the possibility that the issuer of a security/instrument will not be able to make timely payments of interest or principal repayment on the maturity date. This may lead to a default in the payment of principal and interest and ultimately a reduction in the value of unit trust funds. Interest rate / Price risk All fixed-income investors are exposed to this risk. The level of interest rates changes frequently and will cause prices of fixed-income securities to change inversely. If interest rates increase, debt securities held by a Fund will suffer price decreases or capital losses. Structured products risk - The NAV of the Fund will be impacted by the valuation of the structured product. Factors that may impact the valuation of the structured products will include, but not be limited to movement of the underlying asset, volatility of the underlying assets, interest rate levels, the correlation of the underlying assets and other such factors. Any change in the aforesaid factors would either positively or negatively impact the valuation of the structured products hence impacting the NAV of the Fund. Country risk The Fund may be affected by risks specific to the countries in which it invests. Such risks may be caused by, but not limited to, changes in the country s economic fundamentals, social, political stability, currency movements and foreign investment policies. Currency risk The risk is associated with investments denominated in currencies different from the base currency of the Fund. As the Fund is denominated in Malaysian Ringgit, investments in countries other than Malaysia will cause the Fund to be exposed to currency risks. Regulatory risk - The investments of the Fund would be exposed to changes in the laws and regulations in the countries the Fund is invested in. These regulatory changes pose a risk to the Fund as it may materially impact the investments of the Fund. Note: Please refer to section 4.2 of the Master Prospectus on further detail of each risk. It is important to note that events affecting the investments cannot always be foreseen. Therefore, it is not always possible to protect investments against all risks. The various asset classes generally exhibit different levels of risk. The investments of the Fund carry risks and you are recommended to read the whole Master Prospectus to assess the risks of the Fund. If necessary, you should consult your professional adviser(s) for a better understanding of the risks. 7. What are the fees and charges involved? FEES & CHARGES There are fees and charges involved and you are advised to consider them before contributing to the Fund. What will I be charged by the Manager? 5

6 Sales Charge Distributors Maximum Sales Charge on the NAV per Unit of the Fund * Institutional Unit Trust Advisers Internal distribution channel of the Manager 3.00% Unit trust consultants * Investors may negotiate for a lower Sales Charge at the Manager s discretion. Repurchase Charge Nil Switching Fee Transfer Fee Nil RM5.00 per transfer What are the key ongoing fees charged to the Fund? Management fee Up to 1.20% per annum of the NAV of the Fund Trustee fee Up to 0.07% per annum (including local custodian fee but excluding foreign subcustodian fee) of the NAV of the Fund, subject to a minimum of RM18,000 per annum. Note: Please refer to the Master Prospectus for further explanation and illustration of the Fund s Fees, and Expenses. 8. How often are valuations available? VALUATIONS AND EXITING FROM INVESTMENT The Fund will be valued on every Business Day and you may obtain NAV and prices of the Fund from our website at our customer service via our toll free number or to customercare@affinhwangam.com. 9. How can I exit from this investment and what are the risks and costs involved? You may request to redeem your investments in the Fund at any point in time by completing the repurchase application form and returning it to the Manager on any Business Day between 9.00 a.m. and 3.30 p.m. Payments will be made to you within 10 days from the day the repurchase request is received by the Manager and provided that all documentations are completed and verifiable. CONTACT INFORMATION 6

7 10. Who should I contact for further information or to lodge a complaint? 1. For internal dispute resolution, you may contact our customer service personnel: (a) via phone to : (b) via fax to : (c) via toll free no. : (d) via to : customercare@affinhwangam.com (e) via letter : Affin Hwang Asset Management Berhad Suite 11-01, 11th Floor Menara Keck Seng 203, Jalan Bukit Bintang Kuala Lumpur Complaints should be made in writing with the following information: (a) particulars of the complainant which include name, correspondence address, contact number, address (if any) and other relevant information; (b) circumstances of the non-compliance or improper conduct; (c) parties alleged to be involved in the improper conduct; and (d) other supporting documentary evidence (if any). 2. If you are dissatisfied with the outcome of the internal dispute resolution process, please refer your dispute to the following regulatory bodies, details of which are as follows: Federation of Investment Managers Malaysia (FiMM): (a) via to : legalcomp@fimm.com.my (b) via online complaint form : (c) via letter to : Complaints Bureau Legal, Secretarial & Regulatory Affairs Federation of Investment Managers Malaysia , 6 th Floor, Wisma Tune No. 19, Lorong Dungun, Damansara Heights Kuala Lumpur OR 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 Industry Dispute Resolution Center (SIDREC) Unit A-9-1 Level 9, Tower A Menara UOA Bangsar No. 5, Jalan Bangsar Utama Kuala Lumpur 3. You can also direct your complaint to the SC even if you have initiated a dispute resolution process with SIDREC. To make a complaint, please contact the SC s Investor Affairs & Complaints Department: (a) via phone to the 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 : Investor Affairs & Complaints Department 7

8 APPENDIX : GLOSSARY Securities Commission Malaysia No 3 Persiaran Bukit Kiara Bukit Kiara Kuala Lumpur Business Day Deed(s) Equity-linked Instruments or Equity-linked Securities the Fund Master Prospectus the Manager NAV NAV per Unit Unit(s) Units in Circulation Means a day on which the Bursa Malaysia is open for trading. Deed dated 9 December 2004, first supplemental deed dated 16 November 2005, second supplemental deed dated 18 June 2007, third supplemental deed dated 15 October 2008, fourth supplemental deed dated 18 January 2012 and fifth supplemental deed dated 27 June Refers to instruments or securities where the price movements are dependent on the performance of the underlying equities that the instruments or securities are linked to. Refers to Affin Hwang Select Income Fund. Means the Master Prospectus in respect of the following Funds: Affin Hwang Select Opportunity Fund; Affin Hwang Select Balanced Fund; Affin Hwang Select Bond Fund; Affin Hwang Select Income Fund; Affin Hwang Select Asia (ex Japan) Quantum Fund; Affin Hwang Select Asia (ex Japan) Opportunity Fund; Affin Hwang Select Asia Pacific (ex Japan) REITs and Infrastructure Fund; and includes any supplementary or replacement Master Prospectus, as the case may be. Refers to Affin Hwang Asset Management Berhad ( T) (formerly known as Hwang Investment Management Berhad). Means the NAV of the Fund at a particular valuation point divided by the number of Units in Circulation at the same valuation point; where the Fund has more than one Class of Units, there shall be a Net Asset Value per Unit for each Class of Units; the Net Asset Value per Unit of a Class of Units at a particular valuation point shall be the Net Asset Value of the Fund attributable to that Class of Units divided by the number of Units in Circulation for that Class of Units at the same valuation point. Means the NAV of the Fund at a particular valuation point divided by the number of Units in Circulation at the same valuation point; where the Fund has more than one Class of Units, there shall be a Net Asset Value per Unit for each Class of Units; the Net Asset Value per Unit of a Class of Units at a particular valuation point shall be the Net Asset Value of the Fund attributable to that Class of Units divided by the number of Units in Circulation for that Class of Units at the same valuation point. Means a measurement of the right or interest of a Unit Holder in the Fund and where multiple Classes of Units are issued means a Unit of that Class. Means Units created and fully paid and which have not been cancelled. It is also the total number of Units issued at a particular valuation point. 8