EASTSPRING INVESTMENTS TARGET INCOME FUND 3

Transcription

1 EASTSPRING INVESTMENTS TARGET INCOME FUND 3 WE SEE MORE OPPORTUNITIES OF CREATING REGULAR INCOME FOR INVESTORS IN MALAYSIA Eastspring Investments Berhad ( U) Level 12, Menara Prudential, 10 Jalan Sultan Ismail, Kuala Lumpur. Client Services: Client Services Fax No.: Client Services cs@eastspringinvestments.com.my

2 EASTSPRING INVESTMENTS TARGET INCOME FUND 3 PAGE 02&03 Back by popular demand, we are pleased to bring you the Eastspring Investments Target Income Fund 3 ( Fund ) the third in a series of 3-year close-ended bond funds that aim to provide you with regular income during the investment tenure of the Fund via a portfolio of local and/or foreign bonds. If you are seeking an investment with regular income and you have approximately 3 years investment horizon, then this Fund may be what you are looking for.

3 EASTSPRING INVESTMENTS TARGET INCOME FUND 3 PAGE 04&05 WHY CONSIDER THE EASTSPRING INVESTMENTS TARGET INCOME FUND 3? Steady income stream of 4.50% 1 per annum. The Fund aims to provide potential regular income distribution of up to 4.50% 1 per annum on principal amount with relatively lower volatility than equities. The Fund aims to repay capital upon maturity 2 The Fund consists of a diversified portfolio of local and foreign bonds with hedged foreign currency exposure to mitigate volatility of currency movements. Managed by award winning fixed income team The Fund will be managed by Eastspring Investments (Singapore) Limited, one of the largest Asian fixed income managers with fixed income Asset Under Management ( AUM ) of US19.6 billion 3. Two portfolio managers from the fixed income team were accorded the top Astute Investors in Asian Local Currency Bonds 2013 by the Asset Benchmark Research This is not a guaranteed distribution and is subject to the availability of income. Distribution of income if any will be declared semi-annually. The potential annual income distribution of 4.50% per annum is determined based on the following assumptions: 1) that the model portfolio as at 5 February 2014 can be implemented on the Commencement Date. 2) there is no default on the principal and/or coupon payment. 3) the Fund's investments in callable bonds are called back by the issuer on the specified call dates. Please note that the recovery of your principal investment may be affected if you make an early redemption or in the occurrence of a default of the underlying bonds. AUM for Asian Fixed Income team is internally calculated and includes advisory mandates as at 31 December Portfolio manager, Danny Tan, was among the top 3. Source: The Asset Benchmark Research, July/August 2013.

4 EASTSPRING INVESTMENTS TARGET INCOME FUND 3 PAGE 06&07 ILLUSTRATION OF POTENTIAL PAYOUT Scenario: Initial investment of RM50,000 or 50,000 units (@ Offer price of RM1.00) Year 1 Year 2 Year 3 ABOUT EASTSPRING INVESTMENTS (SINGAPORE) LIMITED Up to 4.50%* per annum, aim to distribute twice a year* Investor receives: Target payout of 4.50%* per annum or RM 2,250 Up to 4.50%* per annum, aim to distribute twice a year* Investor receives: Target payout of 4.50%* per annum or RM 2,250 Up to 4.50%* per annum, aim to distribute twice a year* + bonus coupon at maturity, if any Investor receives: Amount invested, upon maturity (RM50,000)* + Target payout of 4.50%* per annum or RM 2,250 + Bonus coupon* upon maturity, if any * The target potential annual income distribution is an indicative payout based on the model portfolio as of 5 February It is not a guaranteed distribution and subject to the availability of income. Distribution of income if any will be declared semi-annually. Your principal investment may be affected if you make an early redemption or in the occurrence of a default of the underlying bonds. In addition, the potential annual income distribution of 4.50% per annum is determined based on the following assumptions that: 1. the model portfolio can be implemented on the commencement date; 2. there is no default or early repayment on principal and/or coupon payment; and 3. the Fund's investments in callable bonds are called back by the issuer on the specified call dates. This Fund draws on the investment expertise of Eastspring Investments (Singapore) Limited. Eastspring Investments (Singapore) Limited is an ultimately wholly-owned subsidiary of Prudential plc ( Prudential ), a company incorporated and with its principal place of business in England. Prudential plc is an international financial services group with significant operations in Asia, the US and the UK. They serve more than 23 million insurance customers and have 443 billion 3 of assets under management. They are listed on stock exchanges in London, Hong Kong, Singapore and New York. HERE S HOW YOU CAN START YOUR INVESTMENT Starting from 16 April 2014, you can invest into the Fund at the offer period price of RM1.00 per unit. Please talk to our authorised Unit Trust Consultants or distributing banks to find out more details. 3 Source: Prudential plc Annual Report, 31 December 2013

5 EASTSPRING INVESTMENTS TARGET INCOME FUND 3 PAGE 08&09 FUND INFORMATION FUND INFORMATION The table below features a simplified list of key highlights of the Fund and is not exhaustive. A summary of the features is also available in the Fund s Product Highlights Sheet ( PHS ). The full features of the Fund are available in the Fund s Prospectus dated 16 April We recommend that you read and understand the Prospectus and PHS before making any investment decision. Performance Benchmark 3-year Maybank fixed deposit rate as at Commencement Date. Please note that investors may obtain information on the benchmark from the Manager upon request. Fund Objective Fund Category / Type Offer Period Offer Price Tenure and Maturity Date The Fund endeavours to provide regular income* during the tenure of the Fund. * Income distribution proceeds will be paid out by way of cheque. Bond (close-ended) / Income Forty-five (45) days commencing from 16 April 2014 to 2 June The Offer Period may be shortened by the Manager ( Eastspring Investments Berhad ) when the Manager is of the view that it is in the best interests of the Unit Holders to commence investing. RM The Fund has a fixed tenure of three (3) years. The Maturity Date is the date which falls on the third (3 rd ) anniversary of the Commencement Date; if that date does not fall on a Business Day^, it shall be the following Business Day. The Maturity Date is expected to be on 3 June If the Fund is terminated earlier in accordance with the provisions of the Deed, the Maturity Date shall mean the date of such early termination. FEES & CHARGES This table describes the charges that you may directly incur when you buy or redeem Units of the Fund. Sales Charge As the Fund will invest in local and foreign markets across various bonds of different ratings, the risk profile of the Fund is not the same as the risk profile of the performance benchmark. Authorised Distributors Manager Institutional Unit Trust Advisers (i.e. Banks) Unit Trust Consultants/ Corporate Unit Trust Advisers Sales Charge as a percentage of the Offer Price during the Offer Period Up to 3.00% Asset Allocation ^ Business Day means a day (other than Saturdays, Sundays and public holidays) on which Bursa Malaysia and foreign markets (in which investments of the Fund having at least 50% of the Fund s Net Asset Value invested therein) are open for trading. Minimum of 70% of the Fund s Net Asset Value ( NAV ) will be invested in local and/or foreign bonds. Not more than 40% of the Fund s NAV may be invested either in non-rated bonds and/or bonds rated below investment grade by RAM, MARC, Standard & Poor s, Moody s, Fitch or other rating agencies (i.e. lower than BBB3 rating by RAM or below investment grade rating by other rating agencies) while the remainder will be invested in investment grade bonds; Repurchase Charge Switching Fee Transfer Fee The Sales Charge is negotiable due to the different levels of services provided by each Authorised Distributor and/or the size of the investment undertaken. 3.00% of the NAV per Unit of the Fund. The repurchase charge is non-negotiable and will be retained by the Fund. No repurchase charge will be imposed on the Maturity Date. Not applicable, as switching facility is not available for this Fund. Nil Principal Risks Up to 30% of the Fund s NAV may be invested in liquid assets including money market instruments and deposits with financial institution. The Manager may deviate from the above asset allocation near # the Maturity Date as the Manager intends to invest proceeds from maturing bonds in liquid assets to preserve the amount of proceeds received as the Maturity Date is imminent. # less than 9 months before the Maturity Date. Principal risks associated with the Fund Credit/default risk; Liquidity risk; Counterparty risk; Asset mismatch risk; Interest rate risk; Concentration risk; Country risk; Reinvestment risk; Currency risk; Ratings downgrade risk; and Taxation risk; Derivative risk. Income distribution risk; This table describes the fees that you may indirectly incur when you invest in the Fund. Annual Management Fee Annual Trustee Fee TRANSACTIONS Minimum Initial Investment Minimum Additional Investment (during Offer Period) Nil. The Fund will not be charged a management fee. Up to 0.06% of the NAV of the Fund per annum subject to a minimum of RM15,000 per annum (excluding foreign custodian fees and charges) RM1,000 or such other amount as the Manager may decide from time to time. RM100 or such other amount as the Manager may decide from time to time.

6 EASTSPRING INVESTMENTS TARGET INCOME FUND 3 PAGE 10&11 Disclaimer: This document is prepared for information purposes only and may not be published, circulated, reproduced or distributed in whole or part, whether directly or indirectly, to any other person without the prior written consent of Eastspring Investments Berhad. Investors are advised to read and understand the contents of the Eastspring Investments Target Income Fund 3 Prospectus dated 16 April 2014 ( Prospectus ) and Product Highlights Sheet ( PHS ) before investing. The Prospectus and PHS are available at offices of Eastspring Investments Berhad or its authorised distributors and investors have the right to request for a copy of the Prospectus and PHS. The Prospectus has been registered with the Securities Commission Malaysia who takes no responsibility for its contents. Units will only be issued upon receipt of the application form accompanying the Prospectus. Past performance of the Fund/Eastspring Investments is not an indication of the Fund s/eastspring Investments s future performance. Unit prices and distribution payable, if any, may go down as well as up. Where a unit split/distribution is declared, investors are advised that following the issue of additional units/distribution, the Net Asset Value ( NAV ) per unit will be reduced from pre-unit split NAV/cum-distribution NAV to post-unit split NAV/ex-distribution NAV. Where a unit split is declared, investors are advised that the value of their investment in Malaysian Ringgit will remain unchanged after the issue of the additional units. Investments in the Fund are exposed to credit/default risk, counterparty risk, interest rate risk, country risk, currency risk, taxation risk, income distribution risk, liquidity risk, asset mismatch risk, concentration risk, reinvestment risk, ratings downgrade risk and derivative risk. Investors are advised to consider these risks and other general risks as elaborated in the Prospectus as well as fees and charges involved before investing. Eastspring Investments companies (excluding JV companies) are ultimately wholly owned/indirect subsidiaries of Prudential plc of the United Kingdom. Eastspring Investments companies (including JV companies) and Prudential plc are not affiliated in any manner with Prudential Financial, Inc., a company whose principal place of business is in the United States of America.