UNITED TRIGGER BOND FUND (the Fund )

Transcription

1 UNITED TRIGGER BOND FUND (the Fund ) PRODUCT HIGHLIGHTS SHEET This Product Highlights Sheet only highlights the key features and risks of this Fund. Qualified Investors are advised to request, read and understand the Information Memorandum before deciding to invest. RESPONSIBILITY STATEMENT This Product Highlights Sheet has been reviewed and approved by the directors of UOB Asset Management (Malaysia) Berhad (formerly known as UOB-OSK Asset Management Sdn Bhd) 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 ( SC ) has authorised the issuance of UNITED TRIGGER BOND FUND and a copy of this Product Highlights Sheet has been lodged with the Securities Commission Malaysia. The authorisation of the UNITED TRIGGER BOND FUND and lodgement of this Product Highlights Sheet, should not be taken to indicate that the Securities Commission Malaysia recommends the UNITED TRIGGER BOND 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 UOB Asset Management (Malaysia) Berhad (formerly known as UOB-OSK Asset Management Sdn Bhd) who is responsible for the UNITED TRIGGER BOND 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. This Product Highlights Sheet is an important document: It is a summary of the salient information about the Fund. You MUST NOT invest in the Fund based on this Product Highlights Sheet alone. Please read the Information Memorandum before deciding to make an investment. If you do not have a copy, please contact us to ask for one. You should not invest in the Fund if you do not understand it or are not comfortable with the accompanying risks. Page 1 of 6 Date: 26 May 2014

2 BRIEF INFORMATION ABOUT THE FUND UNITED TRIGGER BOND FUND (the Fund ) aims to provide income and outperform the relevant trigger level by investing in a portfolio of bonds. The Fund is managed by UOB Asset Management (Malaysia) Berhad (formerly known as UOB-OSK Asset Management Sdn Bhd) (the Manager ). The Manager delegates its investment management function to UOB Asset Management Ltd (the External Investment Manager or EIM ). PRODUCT SUITABILITY The Fund is suitable for Qualified Investors: (i) whose risk appetite is moderate; (ii) who seek income; (iii) who wish to have exposure to a bond portfolio; and (iii) who have a Medium Term (i.e. 3 years and 6 months) investment horizon. Subscription for units in the Fund is open to Qualified Investors as defined below or such other category of investor as may be prescribed by the relevant laws to be a Qualified Investor from time to time: (a) an individual whose total net personal assets, or total net joint assets with his or her spouse, exceed three million ringgit or its equivalent in foreign currencies, excluding the value of the individual s primary residence; (b) an individual who has a gross annual income exceeding three hundred thousand ringgit or its equivalent in foreign currencies per annum in the preceding twelve months; (c) an individual who, jointly with his or her spouse, has a gross annual income exceeding four hundred thousand ringgit or its equivalent in foreign currencies in the preceding twelve months; (d) a corporation with total net assets exceeding ten million ringgit or its equivalent in foreign currencies based on the last audited accounts; (e) a partnership with total net assets exceeding ten million ringgit or its equivalent in foreign currencies; (f) a unit trust scheme or prescribed investment scheme; (g) a private retirement scheme; (h) a closed-end fund; (i) a company that is registered as a trust company under the Trust Companies Act 1949 which has assets under management exceeding ten million ringgit or its equivalent in foreign currencies; (j) a corporation that is a public company under the Companies Act 1965 which is approved by the Securities Commission Malaysia to be a trustee under the CMSA and has assets under management exceeding ten million ringgit or its equivalent in foreign currencies; (k) a statutory body established by an Act of Parliament or an enactment of any state in Malaysia; (l) a pension fund approved by the Director General of Inland Revenue under section 150 of the Income Tax Act 1967; (m) a holder of a Capital Markets Services License issued pursuant to the CMSA; (n) a licensed institution; (o) an Islamic bank; (p) an insurance company licensed under the Financial Services Act 2013; (q) a takaful operator registered under the Islamic Financial Services Act 2013; (r) a bank licensee or insurance licensee as defined under the Labuan Financial Services and Securities Act 2010; and (s) an Islamic bank licensee or takaful licensee as defined under the Labuan Islamic Financial Services and Securities Act In the event that the Manager becomes aware that a person is not eligible to apply for units is in fact holding units, the Manager shall be deemed to have received a redemption request in respect of such units on the business day following the day the Manager first became aware of the unit holder s ineligibility. U.S. Persons (as defined in the Information Memorandum - Definitions section) are prohibited from purchasing Units of the Fund, accordingly, investors may be required to certify that they are not U.S. Persons before making an investment in the Fund. KEY PRODUCT FEATURES What am I investing with? Fund Category Fund Type Investment Objective Investment Strategy Bond (close-ended) Income The investment objective of the Fund is to provide income and outperform the relevant trigger level by investing in a portfolio of bonds. The Fund is structured as a close-ended fund with a Maturity Date and has an Early Page 2 of 6 Date: 26 May 2014

3 Termination feature where the Manager shall terminate the Fund before the Maturity Date if there is a Trigger Event. The External Investment Manager seeks to invest in a portfolio comprising not more than 30 bonds to capture both yield and capital appreciation, with a focus on yield. Such bonds must be listed or traded in Eligible Markets and may be issued by corporations, financial institutions, governments, government agencies, supra-nationals and their agencies, and may be denominated in any currency. The External Investment Manager will generally hold bonds purchased until their respective maturity but may have flexibility to trade the bonds for the purpose of maximizing gains if there are decrease or expected decrease in interest rates resulting in an increase of bond price or to manage risks such as credit/default risk or currency risk which may adversely affect the bonds in the Fund s portfolio. The Fund will generally be invested in bonds with durations that match or are similar to the Maximum Tenure so that the maturity dates of such bonds match or are close to the Maturity Date. However, it may not be possible to purchase bonds which have exactly the same duration as the duration of the Fund. If a Trigger Event does not occur, the Fund will terminate on the Maturity Date. Asset Allocation A minimum of 70% of the Fund s NAV will be invested in bonds. A minimum of 2% of the Fund s NAV will be invested in liquid assets. Performance Benchmark 12 month fixed deposit rate by Malayan Banking Berhad as at the commencement date of the Fund. Launch Date 26 May 2014 Financial Year 30 April of every calendar year or if the Fund comes to an end on an Early Termination Date, the financial year end of the Fund shall be on the Early Termination Date. If the Fund comes to an end on the Maturity Date, the last financial year end of the Fund shall end on the Maturity Date. Offer Period 26 May July 2014 Offer Price RM Maturity Date/ 3 years and 6 months as measured from the commencement date. Maximum Tenure Income Distribution Subject to the availability of income, the Manager will distribute income once a year. Policy Distribution of income will only be made from realized gains or realized income. Distributions, if any, will be paid out in cash to Unit Holders. Trigger Event and Early Termination If a Trigger Event occurs, the Manager shall terminate the Fund before the Maturity Date (Early Termination). A Trigger Event shall have occurred on the fourth (4 th ) consecutive Valuation Day if the net total return exceeds the relevant trigger level for an observation year on four (4) consecutive Valuation Days. The trigger levels are as follows: Observation Year Trigger Level 1 st Observation Year Trigger level for 1 st Observation Year = 6.50% 2 nd Observation Year Trigger level for 2 nd Observation Year = 12.50% 3 rd Observation Year Trigger level for 3 rd Observation Year = 18.50% If a Trigger Event occurs, the Manager shall inform Unit Holders that a Trigger Event has occurred and announce the Early Termination Date within 14 days from the date of the Trigger Event. The Early Termination Date shall be a Valuation Day which is no later than 21 days from the date of the announcement. The Fund will terminate on the Early Termination Date and Unit Holders will receive their investment proceeds based on the number of Units held on the Early Termination Date and the Termination Price. Termination Price on the Early Termination Date The Termination Price on the Early Termination Date shall be the NAV per Unit on the Early Termination Date, provided that all the assets held by the Fund can be sold for cash by 5.00pm on the Early Termination Date. However, if the External Investment Manager is not able to complete selling all the assets of the Fund for cash on the Early Termination Date due to liquidity constraints, the Termination Price shall be the NAV per Unit on the first Valuation Day after all the assets held by the Fund have been sold for cash ( First Cash Day ), and such day must be a day falling within six (6) weeks from the Early Termination Date. Page 3 of 6 Date: 26 May 2014

4 IMPORTANT NOTE: A) Investors should note that the NAV per Unit on the First Cash Day after all the assets held by the Fund have been sold for cash, may be higher or lower than the NAV per Unit on the Early Termination Date due to: i) the fluctuation of bond prices while the External Investment Manager is in the process of selling the bonds for cash, and ii) the accrual of the relevant fees and expenses. B) All investments held by the Fund will be sold for cash and the investment proceeds shall be paid out to Unit Holders within two (2) months from the Early Termination Date, except that if any of the bonds held by the Fund is in default, the portion of the Fund s NAV attributable to such bonds shall not be included in the payment of investment proceeds. However, the amount recovered from such bonds, when received by the Fund (which may be later than two (2) months from the Early Termination Date) will be repatriated to Unit Holders on a prorated basis, according to the number of Units held by each Unit Holder on the Early Termination Date. Who am I Investing with? Manager Manager s delegates Trustee Trustee s delegate (custodian) Tax advisers Auditors UOB Asset Management (Malaysia) Berhad (formerly known as UOB-OSK Asset Management Sdn Bhd) Investment management function: UOB Asset Management Ltd Fund accounting and fund valuation functions: Deutsche Bank (Malaysia) Berhad Registrar and transfer agency functions: Deutsche Trustees Malaysia Berhad Deutsche Trustees Malaysia Berhad Deutsche Bank (Malaysia) Berhad Ernst & Young Tax Consultants Sdn. Bhd. Ernst & Young Possible Outcomes Best case Mid case Worst case Income distribution and Early Termination. No significant change in investment, i.e. no income distribution and no Early Termination. Capital loss and no income distribution. KEY RISKS ASSOCIATED WITH THE FUND Credit/default risk Currency risk Interest rate risk Country risk Concentration risk Fixed maturity risk Early termination risk This refers to the creditworthiness of the issuers of bonds and its expected ability to make timely payment of interest and/or principal. Default happens when the issuers are not able to make timely payments of interest and/or principal. Fluctuation in foreign exchange rates will affect the value of the Fund s foreign investments when converted into the Fund s denominated currency (i.e. Ringgit Malaysia) and subsequently the value of Unit Holders investments. This risk refers to the effect of interest rate changes on the market value of a bond portfolio. In the event of rising interest rates, prices of bonds will generally decrease and vice versa. The value of the Fund s assets may be affected by the economic and political climate, restriction on currency repatriation or other developments in the law or regulations of the countries in which the Fund may invest. The Fund s investment in bonds may be highly concentrated on certain bonds. As such, the Fund may be subject to a higher level of risk than a portfolio with more bonds or a more diversified exposure. The EIM must sell the bonds held by the Fund by the Maturity Date; if the Maturity Date occurs during a period when the bond markets are depressed, bonds which have a later maturity date than the Maturity Date may be liquidated at unfavourable prices, and this would negatively affect the investment proceeds paid to Unit Holders when the Fund is wound up. This risk happens when the EIM is not able to complete selling all the bonds held by the Fund for cash on the Early Termination Date and the bonds may be liquidated at unfavourable prices, resulting in the termination price being less than the NAV per Unit on the Early Termination Date. Note: The abovementioned risks which Qualified Investors should consider before investing into the Fund should not be considered to be an exhaustive list. Qualified Investors should be aware that investments in the Fund may be exposed to other unforeseeable risks from time to time. Qualified Investors are advised to Page 4 of 6 Date: 26 May 2014

5 consult their professional adviser before investing. Please refer to the Information Memorandum under Risk Factors for further details on risks. FEES & CHARGES WITH THE FUND Management Fee Trustee Fee Sales Charge Redemption Charge Transfer Fee Switching Fee Nil 0.06% per annum of the NAV of the Fund, subject to a minimum of RM15,000 per annum. Up to 3.00% of the offer price. Note: The Manager reserves the right to waive and/or reduce the sales charge or redemption charge from time to time at its absolute discretion. Investors may negotiate for a lower sales charge with our IUTAs/ distributors. Investment through the distributors shall be subject to their respective terms and conditions. Up to 1.00% of the NAV per Unit will be imposed for any redemption requests. Not applicable, as transfer facility is not available for the Fund. Not applicable, as switching facility is not available for this Fund. VALUATIONS AND EXITING FROM INVESTMENT How often are valuations available? The Fund will be valued every Friday that is a business day ( Valuation Day ). The price of United Trigger Bond Fund is available on : - Morningstar : - The Star Online : You may also contact the Manager at for the price of the Fund. How can I invest? Minimum initial investment Minimum additional investment Submission of application Cut-off time RM20,000 or such other lower amount as the Manager may from time to time accept. RM10,000 or such other lower amount as the Manager may from time to time accept. Monday Friday (except public holiday) during the Offer Period. By 4.00p.m. on a business day during the Offer Period. How can I redeem? Minimum withdrawal Minimum holding Submission of withdrawal request Cut-off time Payment of withdrawal proceeds Payment of investment proceeds on Early Termination Date or on the Maturity Date 10,000 Units or such other lesser Units as the Manager may from time to time decide. 10,000 Units or such other lesser Units as the Manager may from time to time decide. Monday Friday (except public holiday) By 4.00p.m. on every Friday that is a business day. Redemption proceeds shall be paid within ten (10) days from the day on which the redemption requests are deemed received. Investment proceeds shall be paid to Unit Holders within two (2) months from the Early Termination Date or Maturity Date, as the case may be. Page 5 of 6 Date: 26 May 2014

6 FOR FURTHER INFORMATION OR TO LODGE A COMPLAINT: For enquiries/further information, please contact: Marketing Department UOB Asset Management (Malaysia) Berhad (formerly known as UOB-OSK Asset Management Sdn Bhd) Level 22 Vista Tower The Intermark 348 Jalan Tun Razak Kuala Lumpur Malaysia Tel : Fax : For lodging a complaint, please contact the Compliance Officer at the same address/telephone/fax number above. If you are dissatisfied with the outcome of the dispute resolution process with the Manager, please refer your dispute to the Securities Industry 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 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 Securities Commission Malaysia No 3 Persiaran Bukit Kiara Kuala Lumpur Page 6 of 6 Date: 26 May 2014