AmInvestment Services Berhad ( A) AmASEAN Equity. (the Fund ) RESPONSIBILITY STATEMENTS

Transcription

1 AmInvestment Services Berhad ( A) AmASEAN Equity (the Fund ) RESPONSIBILITY STATEMENTS This Product Highlights Sheet 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 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 this Product Highlights Sheet false or misleading. STATEMENTS OF DISCLAIMER The Securities Commission Malaysia has authorised the issuance of AmASEAN Equity and a copy of this Product Highlights Sheet has been lodged with the Securities Commission Malaysia. The authorisation of the AmASEAN Equity and lodgement of this Product Highlights Sheet, should not be taken to indicate that the Securities Commission Malaysia recommends the AmASEAN Equity 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 AmInvestment Services Berhad responsible for the AmASEAN Equity 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. AmASEAN Equity 1

2 This Product Highlights Sheet only highlights the key features and risks of the Fund. Investors are advised to request, read and understand the Prospectus of the Fund ( Prospectus ) before deciding to invest. The Fund has been certified as being Shariah compliant by the Shariah adviser appointed for the Fund. PRODUCT HIGHLIGHTS SHEET 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 Prospectus 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. What is the Fund about? AmASEAN Equity is an Islamic equity unit trust fund issued by AmInvestment Services Berhad that seeks to provide capital growth over the Medium to Long Term by investing in Shariah compliant equities and equity-related securities with exposure to the ASEAN markets. Who is the Fund suitable for? The Fund is suitable for investors: seeking to participate in an investment of the fast growing ASEAN economies; and who are willing to take higher risks in anticipation of potentially higher returns over the Medium to Long Term*. Note: *Medium to Long Term refers to an investment horizon of at least 3 years. What am I investing in? Fund Category Fund Type Investment Objective Equity (Islamic) Growth The Fund seeks to provide capital growth over the Medium to Long Term* by investing in Shariah compliant equities and equity-related securities with exposure to the ASEAN markets. Note: *Medium to Long Term refers to an investment horizon of at least 3 years. Any material change to the investment objective of the Fund would require Unitholders approval. Investment Strategy 70% to 98% of the Fund's net asset value ( NAV ) will be invested in a diversified portfolio of equities and equity-related securities which are Shariah compliant, issued by companies listed in the ASEAN countries, and including securities listed in non-asean countries but with their core business in the ASEAN markets. The Fund will hold a minimum of 2% of its NAV in liquid assets. Core business in this respect means the major business of the company, where majority of the company s revenue (at least 50%) is derived from the ASEAN country (ies) at the point of investment. AmIslamic Funds Management Sdn Bhd (the Investment Manager ) will review the securities on an annual basis. In the event the company s revenue deriving from ASEAN country (ies) falls below 50%, the Investment Manager will dispose the security within three (3) months from the date of review provided the investment is not below cost. ASEAN member countries comprise of Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. For the life of this Prospectus, the Fund will invest in the ASEAN-5 member countries (comprising Indonesia, Malaysia, Singapore, the Philippines and Thailand). The Investment Manager combines a top-down asset and sector allocation process with a bottom-up stock selection process. The asset allocation will be reviewed periodically depending on the respective country s economic and stock market outlook. The Fund will invest in companies that conform to Shariah principles with above average growth potential. Value-add from equities is derived from active stock selections with focus on undervalued stocks relative to its earnings growth potential and/or its fair value. The Investment Manager employs an active asset allocation strategy depending upon the equity market expectations. Where appropriate, the Investment Manager will also employ an active trading strategy in managing the Fund. In an adverse market conditions, the Investment Manager may increase its asset allocation to lower risk assets such as liquid assets at the expense of equity allocation to safeguard the investments of the Fund. During such period, the Fund's investments may differ from the stipulated investment strategies. Asset Allocation Shariah compliant equities and equity related securities 70%-98% of the Fund s NAV Base Currency of the Fund Dealing Currency of the Fund Liquid assets Ringgit Malaysia (RM) RM, SGD and USD Minimum 2% of the Fund s NAV AmASEAN Equity 2

3 Performance Benchmark S&P Shariah ASEAN Index (source: Launch Date 6 June 2011 Initial Offer Price Income Distribution This benchmark is an Islamic benchmark that covers ASEAN securities. The index is calculated independently by S&P by screening the ASEAN countries from the S&P Global Broad Market Index (BMI) Shariah. RM per unit Income distribution (if any) is incidental. Shariah Investment Principles applicable to the Fund Shariah screening and approving process Investment of the Fund will primarily be in securities in the S&P Shariah ASEAN Index. Any securities which are listed under the S&P Shariah ASEAN Index and in addition to securities certified as Shariah compliant by the Shariah Advisory Council (SAC) of the SC shall be accepted and be treated as Shariah compliant securities. Other securities will be duly screened by the Shariah Adviser based on S&P screening methodology as set out below. Level 1: Industry/Business Activities Screen Sector-based screens exclude the following activities: i) Alcohol ii) Gaming iii) Financials iv) Advertising and Media (newspapers are allowed, sub-industries are analyzed individually) v) Pornography vi) Tobacco vii) Trading of gold and silver as cash on deferred basis The Fund will also avoid conglomerates with companies with income from restricted industries. Level 2: Financial Accounting Screen Accounting-based criteria screens for the following: a) Leverage compliance This compliance is measured as debt / market value of equity (36 month average) < 33%; b) Cash compliance There are compliances with reference to cash holdings. These are: i) accounts receivables / market value of equity (36 month average) < 49%; ii) (cash + interest bearing securities) / market value of equity (36 month average) < 33%; c) Revenue share from non-compliant activities Non permissible income other than interest income / revenue < 5%. Who am I investing with? Manager : AmInvestment Services Berhad ( AIS ) Manager s Delegate (as fund accounting and valuation service provider) : Deutsche Bank (Malaysia) Berhad ( DBMB ) Investment Manager : AmIslamic Funds Management Sdn Bhd ( AIFM ) Trustee : Deutsche Trustees Malaysia Berhad ( DTMB ) Trustee s Delegate (Custodian) : Deutsche Bank (Malaysia) Berhad ( DBMB ) Shariah Adviser : Amanie Advisors Sdn Bhd ( Shariah Adviser ) Taxation Advisor : Deloitte KassimChan Tax Services Sdn Bhd Auditor : Ernst &Young All transactions with related parties are to be executed on terms which are best available to the Fund and which are not less favourable to the Fund than on arm s length transaction between independent parties. The Fund may have dealings with parties related to the Manager. The related parties defined are AmInvestment Management Sdn Bhd ( AIM ), AIFM, AmInvestment Bank Berhad, AmBank (M) Berhad and AmIslamic Bank Berhad. The directors of AIS may have direct or indirect interest through their directorship in AIM and AIFM. However, AIS does not carry on a similar business as AIM and AIFM. The Fund may invest in products and services offered by Deutsche Bank AG and any of its group companies (e.g. money market placements, structured products etc.). No assurance is given that such related party transactions will not occur. In the event any such related party transactions are proposed, DTMB will rely on the management company to ensure any related-party transactions, dealings, investments and appointments are on terms which are the best that are reasonably available for or to the Fund and are on an arm s length basis as if between independent parties. While DTMB has internal policies intended to prevent or manage conflicts of interests, no assurance is given that their AmASEAN Equity 3

4 application will necessarily prevent or mitigate conflicts of interests. DTMB s commitment to act in the best interests of the unit holders of the Fund does not preclude the possibility of related party transactions or conflicts. What are the possible outcomes of my investment? Best Case Mid Case Worst Case Capital appreciation and income distribution. No significant change in investment i.e. no capital appreciation and no income distribution. Capital loss and with no income distribution. What are the key risks associated with the Fund? General Investment Risks Market Risk Inflation Risk Investment Manager Risk Mismatch Risk Financing Risk Non-Compliance Risk This is the risk of prices of assets falling in response to general market conditions such as economic factors, socio-political and regulatory factors and broad investor sentiment. 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 is the risk of the Investment Manager making poor investment decisions which may adversely affect the performance of the Fund. This is the risk that the Fund chosen by the investor may not be suitable for the needs and circumstances of the investor. This is the risk of investing with borrowed money, which includes the investor s inability to service the loan repayments and the adverse impact of an increase in interest rates on the loan repayments, where the investor may be subject to higher loan repayment installments. This is the risk of the Manager, the Investment Manager or the Trustee not complying with internal policies, the Deed of the Fund, securities law or guidelines issued by the regulators, which may adversely affect the performance of the Fund. Specific Risks associated with the Fund Securities Risk Liquidity Risk Country Risk Currency Risk Shariah Risk Non-Compliance Reclassification of Shariah Status Risk Regulatory & Legal Risk Taxation Risk This is the risk of prices of securities falling due to circumstances affecting individual companies. This is the risk of a security with poor liquidity selling at a discount to its fair value, which in turn would adversely affect the NAV of the Fund. As the Fund invests in foreign market(s), the foreign investment portion of the Fund may be affected by risks specific to the country in which it invests. This is the risk associated with investments that are denominated in currencies that are different from the base currency of the Fund. When the currency of foreign investments depreciates against the base currency of the Fund, the Fund will suffer currency losses. This is in addition to any capital gains/losses from the investment. This is the risk of the Fund not conforming to Shariah Principles. Non-compliance may adversely affect the NAV of the Fund when the rectification of non-compliance results in losses. This is the risk that Shariah compliant securities in the Fund may be reclassified to be Shariah non-compliant upon review of the securities by the Shariah Advisory Council (SAC) of the SC, the Shariah Adviser or the Shariah Boards of the relevant Islamic indices. 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 repatriation of investment proceeds and other developments in the law and regulations of the countries in which investments are made. This is the risk that the proceeds from the sale of securities and/or the receipt of income in some markets may be subject to tax, levies, duties or other charges imposed by the authorities in those markets. 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. Investors are advised to consult their professional adviser. Please refer to the Prospectus under Risk Factors for further details on risks. AmASEAN Equity 4

5 What are the fees and charges involved? There are fees and charges involved and you are advised to consider them before investing in the Fund. What will I be charged by AIS? Entry Charge Distribution Channel Direct Sales & IUTA EPF Sales Maximum entry charge Up to 5.00% of NAV per unit of the Fund Not applicable. The Fund is currently not approved under EPF investment scheme. Exit Penalty Transfer Fee Bank Charges/Fees Switching Fee Note: The entry charge is to be charged upon investment in the Fund. There will be no entry charge payable by AMMB Holdings Berhad and its group of companies staff. Investors are advised that they may negotiate for lower entry charge prior to the conclusion of sales. Example Direct Sales & IUTA: For every RM10,000 of investment in the Fund, you will be charged RM500 of entry charge. i.e. RM10,000 x 5.00% of entry charge. There will be no exit penalty charged by the Fund. Transfer of the Fund s units is allowed at the Manager's discretion. Bank charges/fees may be incurred upon withdrawals. For switches between any of the funds managed by AIS, you will be charged on the differences of entry charge between funds switched, which is up to a maximum of 6% of NAV per unit. What are the key ongoing fees charged to the Fund? Annual Management Fee Annual Trustee Fee Up to 1.80% p.a. of the NAV of the Fund. Up to 0.08% p.a. of the NAV of the Fund, subject to a minimum fee of RM10,000 p.a. Example Assuming the amount you have invested in the Fund is RM10,000, the fees that will be calculated on a daily basis and will be paid monthly are as follows: Management Fee per day Trustee Fee per day : (RM10,000 x 1.80%)/365 = RM0.49 : (RM10,000 x 0.08%)/365 = RM0.02 Note: You are advised to consider the fees and charges involved before investing in the Fund. Unit prices and distributions, if any, may go down as well as up. How will I be notified of any increase in fees and charges? A written communication will be sent to Unit Holders to notify of the higher rate and its effective date; A supplementary or replacement prospectus will be registered and issued; and A notice period of 90 days will be given to the Unit Holders prior to the effective date of the new fees and charges. How often are valuations available? We publish updated information on our website and the NAV per unit of the Fund is published in major newspapers on a daily basis. How can I invest in or exit from this investment? How can I invest in this investment? An investor may submit an application to the Manager on any Business Day with complete documentation subject to the minimum initial investment amount and minimum additional investment amount of the Fund. Minimum Initial Investment Malaysian residents RM1,000 Minimum Investment Additional Submission of application Cut-off time Non Malaysian residents Malaysian residents Non Malaysian residents RM1,000 or the nearest equivalent in any dealing currency RM500 Monday to Friday (except public holiday) By 4.00 p.m. on a Business Day RM500 or the nearest equivalent in any dealing currency AmASEAN Equity 5

6 How can I exit from this investment? An investor may withdraw all or part of their units on any Business Day subject to the minimum withdrawal and to maintain a minimum holding for partial withdrawal (or such units as the Manager may from time to time decide). Minimum Withdrawal Minimum Holding Submission of repurchase notice Cut-off time Payment of withdrawal proceeds Cooling-off Period and Rights 500 units 1,000 units Monday to Friday (except public holiday) By 4.00 p.m. on a Business Day Within 10 days of receiving the repurchase notice. 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, which is within six (6) Business Days of making the investment. 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. Example Assuming that you wish to redeem 10,000 units from the Fund. The NAV per unit is RM and there is no exit penalty charged by the Fund. Hence, the withdrawal proceeds that you will receive is RM5,000. Gross withdrawal proceeds = Units redeemed x NAV per unit = 10,000 units x RM = RM5, Net withdrawal proceeds = Gross withdrawal proceeds Exit penalty = RM5,000 (10,000 units x RM x 0.00%) = RM5, No withdrawals will be paid in cash under any circumstances. Who should I contact for further information or to lodge a complaint? 1. For internal dispute resolution, you may contact our customer service representative: (a) via phone to : (b) via fax to : (c) via to : aminvest@ambankgroup.com (d) via letter to : AmInvestment Services Berhad Level 9, Bangunan AmBank Group No.55, Jalan Raja Chulan Kuala Lumpur 2. If you are dissatisfied with the outcome of the internal dispute resolution process, please refer your dispute to the Securities Industry Dispute Resolution Center (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 Securities Commission Malaysia (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 Bukit Kiara Kuala Lumpur AmASEAN Equity 6