PACIFIC ELIT DANA DIVIDEN

Transcription

1 PRODUCT HIGHLIGHTS SHEET PACIFIC ELIT DANA DIVIDEN RESPONSIBILITY STATEMENT This Product Highlights Sheet has been reviewed and approved by the directors or persons approved by the Board of Directors of Pacific Mutual Fund Bhd 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 the Product Highlights Sheet false or misleading. STATEMENT OF DISCLAIMER The Securities Commission Malaysia has authorised the issuance of Pacific ELIT Dana Dividen and a copy of this Product Highlights Sheet has been lodged with the Securities Commission Malaysia. The authorisation of the Pacific ELIT Dana Dividen and lodgment of this Product Highlights Sheet, should not be taken to indicate that the Securities Commission Malaysia recommends the Pacific ELIT Dana Dividen or assumes responsibility for the correctness of any statement made or opinion expressed or report contained in this Product Highlights Sheet. The Securities Commission Malaysia is not liable for any non-disclosure on the part of Pacific Mutual Fund Bhd responsible for the Pacific ELIT Dana Dividen 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 PACIFIC MUTUAL FUND BHD ( U) A Member of OCBC Group PHS-PEDD 0415 l Page 1 of 8

2 This Product Highlights Sheet only highlights the key features and risks of this unlisted capital market product. Investors are advised to request, read and understand the disclosure documents before deciding to invest. 1. What is this product about? PRODUCT HIGHLIGHTS SHEET PACIFIC ELIT DANA DIVIDEN BRIEF INFORMATION ON THE PRODUCT Product Type Manager Trustee Unlisted unit trust fund (open-ended) Pacific Mutual Fund Bhd ( U) CIMB Islamic Trustee Berhad ( M) 2. Who is this product suitable for? PRODUCT SUITABILITY An investor who has a medium to long term investment horizon and who is seeking, through an actively managed portfolio, capital growth and steady and attractive income from a portfolio of global and Malaysian Shariah-compliant equities that are paying or have the potential to pay attractive dividends. Income is in reference to the Fund s distribution, which could be in the form of cash or unit. Unit prices and distributions payable, if any, may go down as well as up. The investor may not get back the full amount invested and the principal amount invested may be at risk. 3. (a) What am I investing in? KEY PRODUCT FEATURES Fund Category Islamic equity Fund Type Growth and income Distribution Income distribution is once a year, if any. Financial Year End 31 March Issuance Date 5 February 2010 Issuance Price RM Maximum Approved Fund Size 200 million units INVESTMENT OBJECTIVE The Fund aims to achieve capital growth and steady and attractive income over the medium to long term by investing in a portfolio of global Shariah-compliant equities that are paying or have the potential to pay attractive dividends. The Fund may also invest in Malaysian sukuk and Islamic money market instruments. A tactical asset allocation strategy will be employed in managing the portfolio. Income is in reference to the Fund s distribution, which could be in the form of cash or unit. INVESTMENT POLICY AND STRATEGY The Fund will invest in a portfolio of global and Malaysian Shariah-compliant equities that have a track record of consistent and attractive dividend payout policy. Global and Malaysian Shariah-compliant equities that have good potential to initiate or increase dividend payouts will also be considered. The Fund may also invest in Malaysian sukuk, Islamic money market instruments and Islamic deposits. In upholding the spirit of Islamic concept of fund management, the investment portfolio of the Fund will comprise securities which have been classified as Shariah compliant by the SACSC and, in Malaysian sukuk and Islamic money market instruments. For securities not certified by the SACSC, the status of the securities will be determined in accordance with rulings issued by the Fund s Shariah Adviser. The Fund will not invest in companies involved in non-islamic banking/finance, conventional insurance, gaming, alcoholic beverages and non-halal food products. PHS-PEDD 0415 l Page 2 of 8

3 The Fund will employ an active tactical asset allocation strategy to optimise returns and mitigate risk. Asset allocation may be adjusted from time to time according to economic and financial market conditions, sentiment and future outlook. Up to 100% of its NAV may be invested in global and Malaysian Shariah-compliant equities when there are attractive opportunities available and a minimum of 70% in equities when the market outlook is not favourable. Thus, any tactical asset allocation carried out for the Fund will be within the 70% minimum and 100% maximum equity allocation range. In exceptional circumstances and as a defensive posture, the Fund s minimum 70% of its NAV in Shariah-compliant equity securities may be reduced to below the floor at the Manager s discretion depending on the market, economic, political or other conditions. Such conditions or exceptional circumstances will include but are not limited to the following situations: Where there is an expected sharp downturn in the equity market; When there is insufficient liquidity in the Shariah-compliant equity securities for the Fund to transact efficiently; When there are insufficient fund assets to form an efficient portfolio (this is where the Fund s assets/nav is reduced to a level where it is not able, in a cost effective manner, to diversify its investments in a reasonable sufficient number of Shariah-compliant securities that enables the Fund to significantly reduce non-systematic or company specific risk); or When there is redemption affecting the liquidity position of the Fund. Where the defensive posture is seen as a relatively short duration move (i.e. one to three months), fixed income strategy would reflect this short-term outlook with the Manager seeking out money market instruments or short-term P1 (or equivalent) commercial papers. Where the downturn in equities is forecast to be long in duration, that portion of the reallocated funds would seek out longer fixed income duration, in accordance with the time horizon of a potential equities secular rebound. Investments used for temporary defensive positions will include Islamic deposits / cash / Islamic liquid assets with Islamic financial institutions and Islamic money market instruments. When the Fund is taking a temporary defensive position, we may adopt an investment strategy which may not be in line with the Fund's investment objective. Asset Allocation The Fund may invest up to 100% (minimum equity allocation is 70%) of its NAV in global and Malaysian Shariahcompliant equities but this may be reviewed from time to time depending on the economic and stock market conditions. An internal allocation for cash and other Islamic liquid assets will be maintained to ensure that the Fund is able to meet redemption requests without jeopardising the Fund s performance. While the maximum limit for Shariah-compliant equity investments is 100%, actual asset allocation varies according to our investment outlook and investment strategies after taking into consideration the prevailing market conditions. The balance of the Fund's NAV that is not invested in global and Malaysian Shariah-compliant equities will be invested in Malaysian sukuk, Islamic money market instruments or Islamic deposits. Accordingly, the Fund will not purchase bonds, debentures or other interest paying obligations. Equity Investment Strategy Equity selection will not be based solely on attractive dividend criteria. The Manager will also undertake fundamental analysis to assess the medium to long term capability of companies to continuously grow their businesses, profits and hence dividend payout potential. A corollary strategy is to identify those companies which may not have a dividend track record, but are likely to be in a strong position to undertake future dividend payments based on their growth prospects, profits and cash flows. Targeted Foreign Markets For global diversification and to optimise returns, the Fund may invest up to 50% of its NAV in global/foreign Shariah-compliant equities. The targeted foreign markets in which the Fund may invest in include Australia, Brazil, Canada, Chile, China, Denmark, France, Germany, Hong Kong, India, Indonesia, Italy, Japan, Netherlands, New Zealand, Norway, Philippines, Singapore, South Africa, South Korea, Spain, Sweden, Switzerland, Taiwan, Thailand, United Kingdom and United States. The Fund may also invest in listed and unlisted Shariah-compliant securities of other foreign markets not listed herein, where the regulatory authority is a member of the IOSCO and where applicable, this will be reported in the interim or annual report of the Fund. Sukuk And Islamic Money Market Investment Strategy The strategy hinges on the need for a well-diversified portfolio and focuses on the credit qualities of Shariahcompliant securities in the portfolio. The sukuk portfolio construction process is research driven and is based on macroeconomic analysis, interest rate analysis, credit analysis and yield spread analysis. Other than the development of a broad asset allocation model, contributions will be made via active management to capitalise on changes in interest rates, inter-sector yield spreads and yield spreads of specific sukuk. PHS-PEDD 0415 l Page 3 of 8

4 Interest rates are a general economic indicator that will have an impact on the management of a fund regardless of whether it is a Shariah-compliant fund or otherwise. It does not in any way suggest that this Fund will invest in conventional financial instruments. All the investments carried out for this Fund are in accordance with requirements of the Shariah. Performance Benchmark Composite Benchmark (50% in FTSE Bursa Malaysia EMAS Shariah Index [FBMS] and 50% in Dow Jones Islamic Market World Index [DJIM]) 3. (b) Who am I investing with? Manager Trustee Trustee s Delegate Auditors Tax Advisers Shariah Adviser Pacific Mutual Fund Bhd ( U) CIMB Islamic Trustee Berhad ( M) CIMB Group Nominees (Tempatan) Sdn Bhd ( T) Ernst & Young Ernst & Young Tax Consultants Sdn Bhd ( K) BIMB Securities Sdn Bhd ( X) 4. What are the possible outcomes of my investment? The quantum of potential returns of the Fund would depend on the Fund s asset allocation decisions and performance of the underlying investments of the Fund. This is a non-guaranteed Fund and the investor may not get back the full amount invested and the principal amount invested may be at risk. Returns are also not fixed or guaranteed. KEY RISKS 5. What are the key risks associated with this product? SPECIFIC RISK OF THE FUND Dividend policy risk This is a risk particular to the Fund which has heavy emphasis on high-yield dividend stocks. This risk may occur when an investee company's business or fundamentals deteriorate or if there is a change in the management policy resulting in a reduction or even a removal of the company's dividend policy. This risk may be mitigated by investing mainly in companies with a consistent historical record of paying dividends, strong cash flow or operate in fairly stable industries. GENERAL RISKS OF THE FUND Timing of asset allocation risk This is the risk that, given the prevailing economic and financial market conditions, the unit trust fund manager makes the inappropriate asset allocation decisions between equities and fixed income securities / sukuk, potentially resulting in lower returns to the Fund. To mitigate such risk, the unit trust fund manager conducts vigorous fundamental macro research and technical analysis. Factors such as economic conditions, interest rate environment, valuations of markets, liquidity, and investor sentiment are taken into account before making asset allocation decisions. Company specific risk This risk refers to the individual risk of the respective companies issuing securities. This risk could be a result of changes to the business performance of the company, consumer tastes and demand, lawsuits, competitive operating environment and management practices. Developments in a particular company which the Fund has invested in would result in fluctuations in the share price of that company and thus the value of the Fund's investments. This risk is mitigated by diversification in a portfolio comprised of stocks of many companies. In addition, this risk may occur when an investee company's business or fundamentals deteriorate or if there is a change in management policy resulting in a downward revision or even removal of the company's dividend policy. Such events may result in an overall decrease in dividend income received by the Fund and possible capital loss due to a drop in the share price of a company that cuts or omits its dividend payments. This risk may be mitigated by investing mainly in companies with a consistent historical record of paying dividends, strong cash flow, or operating in fairly stable industries. Country and/or foreign securities risk This risk refers to the risks of investing in foreign markets. Emerging markets may have relatively underdeveloped capital markets, less stringent regulatory and disclosure standards, concentration in only a few industries, greater adverse political, social and economic risks and general lack of liquidity of securities. The risk of expropriation, nationalisation, exchange control restrictions, confiscatory taxation and limitations on the use or removal of funds also exist in emerging markets. Emerging markets may also have less developed procedures for custody, settlement, clearing and registration of securities transactions. Developed markets while not possessing similar levels of risks as emerging markets, may experience risks such as: changes in economic fundamentals, social and political stability; monetary policy and currency fluctuations. This risk may be mitigated by conducting thorough research on the respective markets, their regulatory framework, economics, companies, politics and social conditions as well as minimising or omitting investments in markets that are economically or politically unstable or lack a regulatory financial framework and adequate investor protection legislation. PHS-PEDD 0415 l Page 4 of 8

5 Currency risk Investing globally means assets are denominated in currencies other than Malaysian Ringgit. Hence, fluctuations in the exchange rates of these foreign currencies may have an impact on the Fund's income and asset valuations. Adverse fluctuations in exchange rates can result in a decrease in returns and loss of capital. This risk may be mitigated by hedging against foreign exchange rate movements. Liquidity risk This risk occurs in thinly traded or illiquid securities. If the Fund needs to sell a relatively large amount of such securities, the act itself may significantly depress the selling price resulting in a decrease in the value of the Fund's assets. The Fund is managed in such a way that a portion of the investments is in equity securities and money market instruments that are highly liquid and this allows the Fund to meet sizeable redemptions without jeopardising potential returns. Market risk This risk refers to developments in the market environment which typically includes changes in regulations, politics, technology and the economy of the country. Market developments can result in stock market fluctuations which in turn affect the Fund's underlying investments and hence its unit price. In terms of the Fund s concentration in a single market, this risk is reduced by undertaking active asset allocation, i.e. shifting investment direction more into other asset classes such as fixed income securities or cash where risk is heightened. Where the Fund is invested in multiple markets, a higher, if not, full allocation will be in markets that have a track record of economic, political and regulatory stability allocation between markets and asset classes will also help mitigate risk. Reclassification of Shariah status risk This risk refers to the risk that the currently held Shariah-compliant investments in the portfolio of Shariah-compliant funds may be reclassified to be Shariah non-compliant. For Shariah-compliant securities, the reclassification may occur in the periodic review of the securities by the SACSC. This risk is mitigated by constantly monitoring the Shariah compliance status of the securities. Detailed fundamental analysis of business stability, financial position and debt ratio analysis, would also help to mitigate such risk. The investment manager exercises diligence in minimising the above risks to the Fund. However, it is not always possible to cover all investment risks in spite of best efforts as financial markets can be highly unpredictable. Investors are encouraged to consult their advisers such as financial/tax consultants, lawyers or bankers for a further understanding of these risks. 6. What are the fees and charges involved? FEES AND CHARGES Sales Charge Annual Management Fee Annual Trustee Fee Redemption Fee Switching Fee Transfer Fee Nil 2.00% p.a. of NAV of the Fund. (The annual management fee is higher compared to other unit trust Funds primarily on the basis of no sales charge is levied on the investors.) The annual management fee is payable on a monthly basis. 0.08% p.a. of the NAV of the Fund calculated and accrued on a daily basis, subject to a minimum of RM18,000 p.a. (excluding foreign custodian fees and charges). The annual trustee fee is payable on a monthly basis. Up to 1.00% of the Fund s NAV per unit. The redemption charge of up to 1.00% of the redemption amount is payable by a unitholder if the redemption is made within three years from the date of investments. After the three years period, no redemption charge will be levied. The Manager does not intend to charge any switching fee. Nil Despite the maximum fees and charges permitted by the deed, all current fees and charges are as disclosed above. All fees and charges quoted are subject to any applicable taxes (including but not limited to GST) and/or duties as may be imposed by the government or other authorities from time to time. PHS-PEDD 0415 l Page 5 of 8

6 7. How often are valuations available? VALUATIONS AND EXITING FROM INVESTMENT This is a Fund with foreign investment exposure. The valuation of NAV of the Fund will be conducted on each business day after the close of the respective foreign stock exchanges on the same calendar day. Due to the different time zone of the foreign stock exchanges, the valuation point will be extended to 5.00 p.m. on the following business day. The daily unit price of the Fund will be published on the next business day after the valuation (T+2). Fund prices will be published in various dailies including business dailies, and Pacific Mutual s website at and the website of the bank distributor that distributes this Fund. 8. How can I exit from this investment and what are the risks and costs involved? Investors can exit from the investment by completing the transaction form. The duly completed and accepted original transaction form must reach Pacific Mutual s head office or its branches by 4.00 p.m. on any business day. Pacific Mutual will repurchase units at the Fund s NAV per unit calculated at the end of that business day. The investor will receive the prevailing price per unit. Transaction forms received after 4.00 p.m. will be treated as having been received on the next business day. Payments will be made to investors within 10 days (from the business day the redemption request is accepted). Note: If an investor is a first-time investor with Pacific Mutual, the investor is entitled to a cooling-off period of six business days. The refund for every unit with regards to the cooling-off right is the sum of the NAV per unit on the day the units were purchased. The money will be refunded within 10 days of receipt of the original notice of cooling-off by Pacific Mutual. However, this is not applicable to corporate/institutional investors, staff of Pacific Mutual and persons registered with a body approved by the Securities Commission Malaysia to deal in unit trusts. PHS-PEDD 0415 l Page 6 of 8

7 CONTACT INFORMATION 9. Who should I contact for further information or to lodge a complaint? Contact Details Of The Manager Head Office Branches Pacific Mutual Fund Bhd ( U) 1001, Level 10, Uptown 1, No. 1 Jalan SS21/58, Damansara Uptown, Petaling Jaya, Selangor Tel: Fax: customercare@pacificmutual.com.my Website: Pulau Pinang Tel: Fax: penang@pacificmutual.com.my Perak Tel: Fax: ipoh@pacificmutual.com.my Melaka Tel: Fax: melaka@pacificmutual.com.my Johor Tel: Fax: jb@pacificmutual.com.my Sarawak Tel: Fax: miri@pacificmutual.com.my Tel: Fax: kuching@pacificmutual.com.my Sabah Tel: Fax: kk@pacificmutual.com.my Institutional Unit Trust Advisers OCBC Bank (Malaysia) Berhad ( W) Tel: OCBC Al-Amin Bank Berhad ( T) Tel: Please specify the nature of the complaint and the person(s) involved stating the date, time and place of occurrence. (i) (ii) For internal dispute resolution, you may contact: Pacific Mutual Fund Bhd Customer Care Hotline: If you are dissatisfied with the outcome of the internal dispute resolution process, please refer your dispute to the 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 1, Kuala Lumpur (iii) You can also direct your complaint to the Securities Commission Malaysia even if you have initiated a dispute resolution process with SIDREC. To make a complaint, please contact the Securities Commission Malaysia 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 PHS-PEDD 0415 l Page 7 of 8

8 business day(s) A day on which the Bursa Malaysia is open for trading. APPENDIX: GLOSSARY daily unit price / net asset value (NAV) per unit The NAV of the Fund divided by the total number of units in circulation, at a particular valuation point. equities/equity Securities providing the investor ownership in companies. The term is used interchangeably with the term stocks. fixed income / debt securities Securities issued by corporations/institutions/governments/semi-government bodies that pay the investor a coupon/interest rate and which have a maturity date. GST Tax levied on goods and services pursuant to the Goods and Services Tax Act net asset value (NAV) The total value of the Fund s assets minus its liabilities at a valuation point. SACSC Shariah Advisory Council of the Securities Commission Malaysia Shariah adviser Means a person or a corporation approved and registered by the Securities Commission Malaysia as Shariah adviser under the Registration of Shariah Advisers Guidelines. sukuk Refers to certificates of equal value which evidence undivided ownership or investment in the assets using Shariah principles and concepts endorsed by the SACSC or recognised by foreign Shariah competent authority. Fund Pacific ELIT Dana Dividen PHS-PEDD 0415 l Page 8 of 8