TA Regular Income Fund

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2 MESSAGE FROM THE CEO Dear investor, We, TA Investment Management Berhad, are pleased to present to you our Prospectus in respect of the TA Regular Income Fund ( the Fund ). The Fund is a 3-year close-ended bond fund which invests a minimum 70% of the Fund s NAV in local and/or foreign bonds and may seek to invest up to 30% of its NAV in liquid assets i.e. money market instruments and fixed deposits issued by financial institutions. The Fund aims to provide investors with regular income distribution*. You may refer to page 11 of the Key Data section for a better understanding of the objective and strategy of the Fund. *Income distribution will be paid out by way of cheque. To achieve the Fund s objective, the Fund will be managed with a buy and hold-to-maturity strategy by the External Investment Manager. The Fund aims to provide an annual income distribution by investing in a diversified portfolio comprising Medium-Term bonds. The External Investment Manager may invest up to 40% of the Fund s NAV in bonds rated below investment grade*. The remainder will be invested in bonds which are investment grade* bonds and/or unrated bonds issued by issuers incorporated in Singapore if these are internally rated by the External Investment Manager as equivalent to investment grade* bonds. The specific risks associated with this Fund include credit/default risk, interest rate risk, country risk, currency /foreign exchange risk, income distribution risk, liquidity risk, mismatch risk, emerging markets risk and counterparty risk. These specific risks and other general risks are elaborated in the Prospectus. The Fund is suitable for investors who: prefer regular income distribution; have a medium risk tolerance; and have a Medium-Term investment horizon. Please note that there are fees and charges imposed for investing in the Fund. For further details on the fees and charges, please refer to page 13 of this Prospectus. If you have any queries about the information relating to this Prospectus or the Fund, please contact our customer service line at Alternatively, Units of the Fund can be bought from our unit trust consultants who are registered with the Federation of Investment Managers Malaysia who may provide assistance when you have any enquiries or may need to perform any transaction with us. Please refer to the Corporate Directory section at page 8 for the relevant contact details. * rated at least BBB3 by RAM, BBB- by MARC, BBB- by S&P or Baa3 by Moody s. Thank you. Yours sincerely, For TA INVESTMENT MANAGEMENT BERHAD WONG MIEN Chief Executive Officer 1

3 RESPONSIBILITY STATEMENTS AND STATEMENTS OF DISCLAIMER This Prospectus has been reviewed and approved by the directors of TA Investment Management Berhad 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 this Prospectus false or misleading. The Securities Commission Malaysia has authorized the Fund and a copy of this Prospectus has been registered with the Securities Commission Malaysia. The authorization, and the registration of this Prospectus, 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 Prospectus. The Securities Commission Malaysia is not liable for any non-disclosure on the part of TA Investment Management Berhad which is responsible for the Fund and takes no responsibility for the contents in this Prospectus. The Securities Commission Malaysia makes no representation on the accuracy or completeness of this Prospectus, and expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of its contents. INVESTORS SHOULD RELY ON THEIR OWN EVALUATION TO ASSESS THE MERITS AND RISKS OF THE INVESTMENT. IN CONSIDERING THE INVESTMENT, INVESTORS WHO ARE IN DOUBT ON THE ACTION TO BE TAKEN SHOULD CONSULT PROFESIONAL ADVISORS IMMEDIATELY. Additional Statements No Units will be issued or sold based on this Prospectus after the Offer Period. Investors are advised to note that recourse for false or misleading statements or acts made in connection with this Prospectus is directly available through sections 248, 249 and 357 of the Capital Markets and Services Act

4 Contents Contents GLOSSARY CORPORATE DIRECTORY KEY DATA Fund Information Fees and Charges Transaction Details Other Information RISK FACTORS General Risks of Investing in a Unit Trust Fund Specific Risks Associated with TA Regular Income Fund THE FUND S DETAILED INFORMATION Investment Objective, Policies and Strategies Asset Allocation Fund Category, Type and Performance Benchmark Permitted Investments Investment Restrictions and Limits Risk Management Strategies Valuation of the Fund Policy on Gearing Investors Profile FEES, CHARGES AND EXPENSES Charges Directly Incurred Fees Indirectly Incurred Direct Expenses Related to the Fund Other Fees and Charges Rebates and Soft Commissions Policy on Rounding Adjustment Incorrect Pricing TRANSACTION INFORMATION Pricing Policy Application and Redemption Distribution Policy Unclaimed Moneys Policy Payment Methods How to Buy, Sell, Switch and Transfer THE MANAGEMENT COMPANY The Manager

5 4 TA Regular Income Fund 8.2 Roles, Duties and Responsibilities of the Manager Summary of TAIM s Financial Position Board of Directors Key Management Personnel Investment Committee Investment Team Material Litigation and Arbitration EXTERNAL INVESTMENT MANAGER Fullerton Fund Management Company Ltd s Profile Roles, Duties and Responsibilities of External Investment Manager Key Personnel of the External Investment Manager THE TRUSTEE Experience in Trustee Business Trustee s Financial Information Board of Directors Key Management Staff Roles, Duties and Responsibilities of the Trustee Trustee s Statement of Responsibility Trustee s Declaration Trustee s Delegate Trustee s Obligation Material Litigation & Arbitration SALIENT TERMS OF DEED Your Rights and Liabilities as a Unit Holder Maximum Fees and Charges Permitted by the Deed Procedures to Increase the Direct and Indirect Fees and Charges Procedures to Increase the Maximum Rate of the Direct and Indirect Fees and Charges in the Deed Permitted Expenses Manager s Right to Retire Manager s Power to Remove or Replace Trustee Trustee s Right to Retire Power of Trustee to Remove or Replace the Manager Termination of the Fund Meetings of Unit Holders RELATED PARTY TRANSACTIONS / CONFLICT OF INTEREST TAXATION ADVISOR S LETTER ADDITIONAL INFORMATION Customer Service Anti-Money Laundering Policy... 53

6 14.3 Material Contracts CONSENT DOCUMENTS AVAILABLE FOR INSPECTION

7 1 GLOSSARY In this Prospectus, the following words or abbreviations shall have the following meaning unless otherwise stated: Act Bursa Malaysia Business Day Commencement Date Deed External Investment Manager FiMM Guidelines IUTA Capital Markets and Services Act 2007 including all amendments thereto and all rules, regulations and guidelines issued there under The stock exchange managed or operated by Bursa Malaysia Securities Berhad A day on which Bursa Malaysia is open for trading Note: The Manager may declare certain Business day to be a non-business Day, although Bursa Malaysia is open for business, if one or more of the foreign markets in which the Fund is invested therein are closed for business. This is to ensure that investors will be given a fair valuation of the Fund. The seventh (7 th ) Business Day immediately after the expiry of the Offer Period The Deed dated 29 April 2014 entered into between the Manager and the Trustee in respect of the Fund as may be modified from time to time Fullerton Fund Management Company Ltd Federation of Investment Managers Malaysia Guidelines on Unit Trust Funds An institutional unit trust adviser registered with FiMM to market and distribute unit trust funds LPD Latest practicable date as at 31 March 2014 MARC Maturity Date Medium-Term Moody s Net Asset Value (NAV) of the Fund NAV per Unit Offer Period Malaysian Rating Corporation Berhad 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 One (1) year to three (3) years Moody's Investors Service Determined by deducting the value of all the Fund s liabilities from the value of all the Fund s assets, at the valuation point. For the purpose of computing the annual management fee and annual trustee fee, the Net Asset Value of the Fund should be inclusive of the management fee and trustee fee for the relevant day In respect of the Fund, is the NAV of the Fund at a particular valuation point divided by the number of Units of that Fund in circulation at the same valuation point A period of forty five (45) days from the date of this Prospectus Offer Price The Offer Period may be shortened by the Manager if the Manager deems it is opportunistic to commence investment immediately based on the Manager s view of the economic outlook subject to the Trustee s approval. Units of the Fund are only available for purchase during the Offer Period The price payable by an applicant for a Unit during the Offer Period 6

8 Prospectus RM SC Selling Price Special Resolution S&P TASH TAE TARIF or The Fund The Trustee Unit or Units Unit Holder We/ us/ the Manager/ TAIM The prospectus in respect of the TA Regular Income Fund Ringgit Malaysia The Securities Commission Malaysia established under the Securities Commission Act 1993 The price payable by an applicant for a Unit or Units during the Offer Period; for the avoidance of doubt, the selling price shall be exclusive of the sales charge A resolution passed at a meeting of Unit Holders duly convened in accordance with the Deed and carried by a majority in number representing at least three-fourths of the value of the Units held by the Unit Holders voting at the meeting in person or by proxy Standard & Poor s Rating Services TA Securities Holdings Berhad (Company No M) TA Enterprise Berhad (Company No M) TA Regular Income Fund CIMB Commerce Trustee Berhad (Company No A) A measurement of the right or interest of a Unit Holder in the Fund including a fraction of a Unit The person for the time being who is registered pursuant to the Deed as a holder of Units of the Fund TA Investment Management Berhad (Company No T) 7

9 2 CORPORATE DIRECTORY MANAGER: TA Investment Management Berhad ( T) Registered Office 34 th Floor, Menara TA One 22 Jalan P. Ramlee Kuala Lumpur Tel : Fax: Head Office 23 rd Floor, Menara TA One 22 Jalan P. Ramlee Kuala Lumpur Tel : Fax: Toll Free: investor.taim@ta.com.my Website: Miri Business Centre Lot 1251, 1 st Floor, Block 10 Miri Concession Land District, Centrepoint Commercial Centre Jalan Melayu,98000 Miri, Sarawak Tel : / Fax: Kota Kinabalu Business Centre Unit , 1 st Floor Block 4, Api-Api Centre Jalan Centre Point Kota Kinabalu, Sabah Tel : / Fax: Melaka Business Centre 57A, Jalan Merdeka Taman Melaka Raya Melaka Tel : / 3052 Fax: Kuching Business Centre L204, 1 st Floor Jalan Tunku Abdul Rahman Kuching Sarawak Tel : Fax: Ipoh Business Centre Ground Floor, Plaza Teh Teng Seng 227 Jalan Permaisuri Bainun Ipoh, Perak Tel : / 8813 Fax: Penang Business Centre , Bayan Point, Medan Kampung Relau Penang Tel : / Fax : Board Of Directors (Manager) 1. Choo Swee Kee (Non-Independent) 2. Zainab Binti Ahmad (Non-Independent) 3. Dr Wong Hong Meng (Independent) 4. Christopher Koh Swee Kiat (Independent) Investment Committee Members 1. Choo Swee Kee ( Non-Independent) 2. Dr Wong Hong Meng (Independent) 3. Tay Kian Chuan (Independent) 8

10 TRUSTEE: CIMB Commerce Trustee Berhad ( A) Registered Office Level 13, Menara CIMB Jalan Stesen Sentral 2 Kuala Lumpur Sentral Kuala Lumpur Tel: Fax: Website: EXTERNAL INVESTMENT MANAGER Fullerton Fund Management Company Ltd ( W) Business Address: 60B Orchard Road #06-18 Tower 2 The Atrium@Orchard Singapore Tel : Fax: Business Office Level 21, Menara CIMB Jalan Stesen Sentral 2 Kuala Lumpur Sentral Kuala Lumpur Tel : Fax: Trustee s Delegate: CIMB Group Nominees (Tempatan) Sdn Bhd ( T) (As custodian) Registered Office Level 13, Menara CIMB Jalan Stesen Sentral 2 Kuala Lumpur Sentral Kuala Lumpur Tel: Fax: Website : Business Office Level 21, Menara CIMB Jalan Stesen Sentral 2 Kuala Lumpur Sentral Kuala Lumpur Tel : Fax: COMPANY SECRETARY Chuah Wen Pin (MAICSA ) Business Address: 34 th Floor, Menara TA One 22 Jalan P. Ramlee Kuala Lumpur Tan Kit Yee (MAICSA ) Business Address: 34 th Floor, Menara TA One 22 Jalan P. Ramlee Kuala Lumpur SOLICITORS: Naqiz & Partners Business Address: 42A, Lorong Dungun Damansara Heights Kuala Lumpur Tel: Fax:

11 PRINCIPAL BANKER Malayan Banking Berhad Business Address: Ground Floor, Wisma Genting Jalan Sultan Ismail Kuala Lumpur Tel: /5130 Fax: TAX ADVISER KPMG Tax Services Sdn Bhd Business Address: Level 10, KPMG Tower 8, First Avenue, Bandar Utama Petaling Jaya Selangor Darul Ehsan Tel: Fax: AUDITORS Ernst & Young Business Address: Level 23A, Menara Milenium Jalan Damanlela Pusat Bandar Damansara Kuala Lumpur Tel: Fax: FiMM Federation of Investment Managers Malaysia Business Address: , 7th Floor, PNB Damansara 19, Lorong Dungun Damansara Heights Kuala Lumpur Tel: Fax:

12 3 KEY DATA THIS SECTION IS ONLY A SUMMARY OF THE SALIENT INFORMATION ABOUT THE FUND AND INVESTORS SHOULD READ AND UNDERSTAND THE WHOLE PROSPECTUS BEFORE MAKING ANY INVESTMENT DECISIONS. 3.1 Fund Information Name of Fund TA Regular Income Fund (TARIF) Manager TA Investment Management Berhad (Company No T) External Investment Manager Trustee Fund Category / Type Objective of the Fund Investment Policy and Strategy Fullerton Fund Management Company Ltd ( Company No W) CIMB Commerce Trustee Berhad (Company No A) Bond (close-ended) / Income The Fund aims to provide investors with regular income distribution*. *Income distribution will be paid out by way of cheque. The Fund will be managed with a buy and hold-to-maturity strategy by the External Investment Manager. The Fund aims to provide an annual income distribution by investing in a diversified portfolio comprising Medium-Term bonds. The External Investment Manager may invest up to 40% of the Fund s NAV in bonds rated below investment grade*. The remainder will be invested in bonds which are investment grade* bonds and/or unrated bonds issued by issuers incorporated in Singapore if these are internally rated by the External Investment Manager as equivalent to investment grade* bonds. The investment policy and strategy is further elaborated in chapter 5. * rated at least BBB3 by RAM, BBB- by MARC, BBB- by S&P or Baa3 by Moody s. Asset Allocation Minimum 70% of the Fund s NAV will be invested in local and/or foreign bonds. Up to 30% of the Fund s NAV will be in liquid assets i.e. money market instruments and fixed deposits issued by financial institutions. Credit/default risk Liquidity risk Specific Risks Associated to the Fund Interest rate risk Country risk Currency/foreign exchange risk Mismatch risk Emerging markets risk Counterparty risk Income distribution risk Risk Profile Moderate 11

13 36-months (3 years) Malayan Banking Berhad (Maybank) fixed deposit rate as at Commencement Date. Performance Benchmark Source: The information on the benchmark can be obtained at or from the Manager upon request at all time. *Please note that the risk profile of the Fund does not reflect that of the performance benchmark. Investors Profile Financial Year End Base Currency of the Fund Offer Price The Fund is suitable for investors who: prefer regular income distribution; have a medium risk tolerance; and have a Medium-Term investment horizon. 28 th February* * The financial year end for a leap year will fall on 29 th February RM RM per Unit A period of forty five (45) days from the date of this Prospectus. Offer Period The Offer Period may be shortened by the Manager if the Manager deems it is opportunistic to commence investment immediately based on the Manager s view of the economic outlook subject to the Trustee s approval. Units of the Fund are only available for purchase during the Offer Period. Launch Date 16 June 2014 Maturity of the Fund The Fund will mature on the date that falls on the third (3 rd ) anniversary of the Commencement Date and if that date is not a Business Day, it shall be the following Business Day. 12

14 3.2 Fees and Charges This table describes the charges that you may incur DIRECTLY when you buy or sell Units of the Fund: Charges Distribution Channels Maximum Rate of Sales Charge (% of NAV per Unit) Imposed by IUTAs 2.5% Sales Charge per Unit Imposed by unit trust consultants 2.5% Imposed by the Manager 2.5% Sales charge is to be rounded to the nearest RM Note: The Manager reserves the right to waive and/or reduce the sales charge from time to time at its absolute discretion. Investors may negotiate for a lower sales charge through the sales and promotional campaigns from time to time or alternatively, investors may negotiate with their preferred distributors for a lower sales charge. Investment through the distributors shall be subject to their respective terms and conditions. Redemption Charge Switching Fee Transfer Fee Other charges A redemption charge of up to 3% of the NAV per Unit will be imposed on any redemption of Units made at any point of time before the Maturity Date of the Fund. Note: The redemption charge shall be retained by the Fund to cover part of the transaction cost that may have been incurred in disposing of bonds from the portfolio in order to fulfil Unit Holders redemption requests. Switching is not allowed. The Manager reserves the right to impose such fee as may be determined by the Manager from time to time. Charges, for instance bank charges, telegraphic charges and courier charges, shall be borne by the investor. This table describes the charges that you may incur INDIRECTLY when you buy or sell Units of the Fund: Fees and Expenses Annual Management Fee 0.50% per annum of the NAV of the Fund calculated on a daily basis. Annual Trustee Fee 0.05% per annum of the NAV of the Fund subject to a minimum of RM18,000 per annum calculated and accrued daily (excluding foreign custodian fees and charges). 13

15 Other Expenses of the Fund A list of the expenses which are directly related to the Fund are as follows: audit fees; commission/fees paid to dealers; sub-custodian fees and charges; independent investment committee member fee; tax adviser s fee; taxes and other duties imposed by the government and/or other authorities; valuation fees incurred for the valuation of any investment of the Fund by independent valuers for the benefit of the Fund; cost for annual and interim reports; cost for modification of the Deed save where such modification is for the benefit of the Manager and/or the Trustee; costs, fees and expenses incurred for any meeting of the Unit Holders save where such meeting is convened for the benefit of the Manager and/or the Trustee; and any other expenses allowed under the Deed. 3.3 Transaction Details Minimum Initial Investment Minimum Additional Investment Minimum Holding 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. Note: Additional investments may be made during the Offer Period only. 500 Units or such other amount as the Manager may decide from time to time. 500 Units or such other amount as the Manager may decide from time to time. Minimum Redemption Unit Holders must hold a minimum of 500 Units in their account if they wish to remain as a Unit Holder. The Manager may request the Unit Holder to redeem all of their Units if the number of Units they hold falls below the minimum holding amount. There is no restriction on the frequency of redemption. Proceeds from the redemption charge will be retained by the Fund. Frequency of Redemption Redemption Payment Period Redemption requests must be received by the Manager no later than 4 pm on each Thursday. Redemption requests that are received after 4.00 p.m. on a Thursday will only be processed on the following Thursday. Should a Thursday be a non-business Day, Unit Holders can redeem the Units of the Fund on the following Business Day. In such cases, redemption requests must be received by the Manager no later than 4.00 p.m. on the following Business Day. Within ten (10) days upon receipt of the request for withdrawal. 14

16 Switching Policy Switching is not allowed for this Fund. Transfer Policy Transfer of Units may be permissible by the Manager and a Unit Holder must hold a minimum of 500 Units in his account if he wishes to remain as a Unit Holder. The Manager may request the Unit Holder to redeem all of his Units if the number of Units he holds falls below the minimum holding amount. A cooling-off right is only given to qualified investor. A qualified investor is a person who is investing in any of the unit trust funds managed by us for the first time but shall not include the following persons: - Cooling-Off Rights & Cooling-Off Period a corporation or institution; our staff; and a person registered with a body approved by the SC to deal in unit trusts. Cooling-Off Period refers to a period of six (6) Business Days from the date of receipt by the Manager of the application to purchase Units. Please refer to page 29 for more information on Cooling-Off Rights. DISTRIBUTION Income Distribution Policy Subject to the availability of income, the Fund will distribute income annually. Note: The Fund s income distributions are NOT guaranteed and subject to the continuing ability of the issuers of the Fund s bond s investments to meet their respective outstanding financial obligations. Investors are advised to evaluate their risk tolerance and investment time horizon before investing in the Fund. 3.4 Other Information Deed The Deed in respect of the Fund dated 29 April 2014 entered into between the Manager and the Trustee. Avenue for Advice You may contact our Customer Service at THE ABOVE KEY DATA IS ONLY A SUMMARY OF THE FUND S SALIENT INFORMATION. YOU SHOULD READ AND UNDERSTAND THE CONTENTS OF THIS PROSPECTUS AND, IF NECESSARY, CONSULT YOUR ADVISER(S) BEFORE MAKING AN INVESTMENT DECISION. THERE ARE FEES AND CHARGES INVOLVED AND YOU ARE ADVISED TO CONSIDER THE FEES AND CHARGES BEFORE INVESTING IN THE FUND. UNIT PRICES AND DISTRIBUTIONS PAYABLE, IF ANY, MAY GO DOWN AS WELL AS UP. FOR INFORMATION CONCERNING CERTAIN RISK FACTORS WHICH YOU SHOULD CONSIDER, PLEASE REFER TO THE RISK FACTOR SECTION COMMENCING ON PAGE

17 4 RISK FACTORS This part of the prospectus describes some of the general risks of investing in a unit trust fund and the specific risks related to investing in the Fund. 4.1 General Risks of Investing in a Unit Trust Fund Loan financing risk In the case when an investor obtains a loan to purchase units and pledge those units as collateral for that loan, investor has to be aware that if the total net asset value of the units falls below the amount of the loan, the lender may require the investor to provide additional forms of collateral. In addition, cost of borrowing may increase if the interest rates trend upwards especially if the borrowing is based on floating interest rates. Market risk Market risk refers to the risk of prices of investments held by a unit trust fund falling in response to general market conditions, whether locally or globally. Factors influencing the performance of markets include:- Economic factors, including changes in interest rates, inflation and foreign exchange rates; Socio-political and regulatory factors; and Broad investor sentiment. Inflation risk Purchasing power is reduced by inflation and if the rate of inflation is higher than the rate of returns on investments, the real rate of your investment return (i.e. the returns after adjusting for inflation) could be negative despite the fund showing a positive return. Hence, investors should consider the potential real rate of returns prior to investing. Breach of mandate risk Breach of mandate risk arises when the manager does not adhere to the investment mandate of the fund, which could occur for a number of reasons, including changes in law. Occurrence of this risk will cause investors to lose confidence on the fund and subsequently investor will withdraw their investment from the fund. However, this risk is mitigated by the manager as follows: monitoring by the investment committee; and monitoring investment limits and restrictions through front office system, a system used by manager and dealers for placing trades which also has the capability to monitor various regulatory and internal requirements such as investment breaches. Non-compliance risk Non-compliance risk refers to non-conformance of manager with laws, rules and regulations, internal policies and procedures that could arise for a number of reasons including changes in law. Under such scenario, the manager may have to dispose its investment prematurely and/or at a loss in order to adhere with the investment limits and restrictions of the fund. Occurrence of this risk may negatively affect the unit holders investment. This risk may be mitigated by constant monitoring by the manager s compliance officer. Operational risk Operational risk is the risk of loss resulting from inadequate or failed internal processes, people and systems. The manager may rely on fully functioning internal processes and information systems to manage the investment portfolios. Breakdown in internal processes or systems fault may result in financial losses as a result of which may cause a fall in the net asset value of the fund. Human error may arise due to miscommunication or negligence. However, the manager is obliged to be responsible for the losses. 16

18 4.2 Specific Risks Associated with TA Regular Income Fund TA Regular Income Fund Credit/Default risk This risk relates to creditworthiness of the issuers of bonds and its expected ability to make timely payments of interest and/or principal. Investing in non investment grade bonds may result in the Fund being highly exposed to risk of non-payment or untimely payment of interest and/or principal that may adversely impact the Fund s value. Interest rate risk The Fund s bond investments are subject to interest rate fluctuations. In the event of rising interest rates, prices of bonds may decrease and vice versa. Consequently, such fluctuations may adversely affect the NAV of the Fund. Country risk This is the risk where investments made by the Fund may be affected by changes in the political, taxation, foreign investment policies, restrictions and controls, social and economic conditions of a country that the Fund invests in. These changes may be imposed by the relevant authorities of a country. Occurrence of this risk will adversely affect the performance of the Fund. Currency / foreign exchange risk Whilst the Fund is denominated in the base currency, the Fund s investments may be denominated in other currencies. Where the Fund s investments are denominated in currencies other than the base currency, the Fund will translate the value of those assets back to the base currency for the purpose of valuation and determination of NAV. In such an instance, the Fund is exposed to foreign currency fluctuation due to exchange rate movements between the base currency and that of the Fund s investments which are denominated in currencies other than the base currency. Example is when RM appreciated against the currency in which the investments are denominated; this will have an adverse effect on the NAV of the Fund and vice versa. Investors should note that movement of the foreign currencies against the base currency may affect the value of the Fund s foreign investments when converted into local currency and subsequently the value of Unit Holders investments. Hedging may be applied to mitigate the currency/foreign exchange risk. Income Distribution risk It is not the policy of the Manager or External Investment Manager to guarantee the investment returns or income distribution to investors. Although distributions are not guaranteed, the External Investment Manager will apply the appropriate criteria when selecting bonds to ensure that there is sufficient cash flow to provide liquidity and income distribution. Liquidity risk Liquidity risk arises from the lack of marketability which an investment can be traded at or near its fair value, depending on the volume traded on the market. It may occur when the Fund experiences large redemptions, which in turn, would require the selling of bonds at a point in time when prices are unfavourable due to insufficient buyers in the market at the fair value. 17

19 Mismatch risk This risk occurs when the Fund invests in bonds with maturity exceeding the Fund s Maturity Date. If the maturity of bonds exceeded the maturity of the Fund, those bonds may be liquidated at unfavourable prices which are lower than the cost of investment. Occurrence of this risk may result loss to the Fund because the bonds liquidated prematurely. Emerging markets risk Emerging markets are nations with social or business activity in the process of rapid growth and industrialisation. Investments in emerging markets could be more volatile than investments in developed markets. Some of these emerging markets may have relatively unstable governments, economy based on only a few industries and bond markets that trade only limited number of bonds. The trading volume and market capitalisation of emerging markets may be lower than in developed markets. This may therefore affect the Fund s ability to acquire or dispose bonds at the desired price. Counterparty risk The Manager may utilise over-the-counter (OTC) derivatives such as forward contracts to hedge currency risk. The use of these OTC derivatives expose the Fund to risks relating to the credit standing of counterparties and their ability to fulfil the conditions of the contracts when the contracts fall due. The Manager aims to mitigate this risk by performing fundamental credit research and analysis to determine the creditworthiness of its counterparty. THE ABOVE SHOULD NOT BE CONSIDERED TO BE AN EXHAUSTIVE LIST OF THE RISKS WHICH POTENTIAL INVESTORS SHOULD CONSIDER BEFORE INVESTING INTO THE FUND. POTENTIAL INVESTORS SHOULD BE AWARE THAT AN INVESTMENT IN THE FUND MAY BE EXPOSED TO OTHER RISKS FROM TIME TO TIME. YOU SHOULD RELY ON YOUR OWN EVALUATION TO ASSESS THE MERITS AND RISKS OF AN INVESTMENT. YOU SHOULD READ AND UNDERSTAND THE CONTENTS OF THE PROSPECTUS AND, IF NECESSARY, CONSULT YOUR ADVISOR(S) BEFORE MAKING AN INVESTMENT DECISION. 18

20 5 THE FUND S DETAILED INFORMATION 5.1 Investment Objective, Policies and Strategies Objective of the Fund The Fund aims to provide investors with regular income distribution*. *Income distribution will be paid out by way of cheque. Any material changes to the investment objective of the Fund would require the Unit Holders approval. Offer Price The Offer Price is set at RM1.00 per Unit throughout the Offer Period. Unit Holders wishing to redeem their investment after the Offer Period may redeem their investment subject to the redemption charge and the prevailing NAV per Unit of the Fund. Offer Period The Offer Period means a period of forty five (45) days from the date of this Prospectus. The Offer Period may be shortened by the Manager if the Manager deems it is opportunistic to commence investment immediately based on the Manager s view of the economic outlook subject to the Trustee s approval. Units of the Fund are only available for purchase during the Offer Period. Maturity of the Fund The Fund will mature on the date that falls on the third (3 rd ) anniversary of the Commencement Date and if that date is not a Business Day, it shall be the following Business Day. Investment Policy and Strategy of the Fund External Investment Manager will be managing the bond portfolio of the Fund by investing in a diversified portfolio comprising Medium-Term bonds. The External Investment Manager may invest up to 40% of the Fund s NAV in bonds rated below investment grade*. The remainder will be invested in bonds which are investment grade* bonds and/or unrated bonds issued by issuers incorporated in Singapore if these are internally rated by the External Investment Manager as equivalent to investment grade* bonds. The aforementioned strategies are expected to generate income and hence to provide as income distribution to the Fund s investors. The Fund will invest in bonds issued by issuers based/domiciled in foreign markets where the regulatory authority is a member of the International Organization of Securities Commissions (IOSCO). Foreign markets that the Fund seeks to invest in include, but are not limited to Australia, China, Hong Kong, Korea, Russia, Singapore, Taiwan, United Kingdom and the United States of America. When investing in foreign markets which require prior permission / approval such as in the form of an investment license / investor code / investor registration, the Fund will obtain such necessary permission / approval in order to invest in such markets. Bond portfolio of the Fund will be managed using buy and hold-to-maturity strategy by the External Investment Manager with the focus to lock in yields. Therefore, the External Investment Manager will endeavour to invest in bonds that match the Maturity Date of the Fund as far as possible. This strategy is to mitigate the possibility occurrence of mismatch risk and ensure the Fund potentially obtain the full notional value of those bonds upon the Maturity Date of the Fund (please refer to section 4.2 for further details). In an event prior to default or downgrade of bonds, the External Investment Manager will review the said bonds and determine if there is a need to dispose the bonds with the objective of safeguarding the interest of the Fund and the Unit Holders. Replacement may be made to the said bonds after taking into consideration the risk profile of the Fund s portfolio. Nevertheless, if disposal is done close to the Maturity 19

21 Date, those proceeds will be invested in money market instruments issued by financial institutions and/or held in fixed deposits. The Fund may invest in liquid assets i.e. money market instruments and fixed deposits issued by financial institutions to generate income and hence to provide as income distribution to the Fund s investors. *rated at least BBB3 by RAM, BBB- by MARC, BBB- by S&P or Baa3 by Moody s. 5.2 Asset Allocation The asset allocation of the Fund is as follows: Minimum of 70% of the Fund s NAV will be invested in local and/or foreign bonds. Up to 30% of the Fund s NAV will be in liquid assets i.e. money market instruments and fixed deposits issued by financial institutions. 5.3 Fund Category, Type and Performance Benchmark Fund Category / Type of Fund Performance Benchmark Bond (close-ended)/ Income 36-months (3 years) Malayan Banking Berhad (Maybank) fixed deposit rate as at the Commencement Date. Source: The information on the benchmark can be obtained at or from the Manager upon request at all time. *Please note that the risk profile of the Fund does not reflect that of the performance benchmark. 5.4 Permitted Investments Unless otherwise prohibited by the relevant authorities or any relevant law and provided always that there are no inconsistencies with the objective of the Fund, the Fund is permitted under the Deed to invest in the following: 1. Bonds in local and foreign markets; 2. Money market instruments in local and foreign markets issued by financial institutions; 3. OTC derivatives for the purpose of hedging only; 4. Liquid assets i.e. money market instruments and fixed deposits issued by financial institutions; and 5. Any other form of investments permitted by the relevant authorities from time to time. 5.5 Investment Restrictions and Limits 1. The value of the Fund s investments in debentures issued by any single issuer must not exceed twenty (20) per cent of the Fund s NAV but must not exceed thirty ( 30) per cent of the NAV, if the debentures are rated by any domestic or global rating agency to be of the best quality and offer highest safety for timely payment of interest and principal. 2. The value of the Fund s investments in debentures issued by any one group of companies must not exceed thirty (30) per cent of the Fund s NAV. 3. The value of the Fund s placement in deposits with any single institution must not exceed twenty (20) per cent of the Fund s NAV. 20

22 4. The Fund s exposure from its derivatives position should not exceed the Fund s NAV at all times; 5. For investments in derivatives, the exposure to the underlying assets of derivative must not exceed the investment spread limits stipulated in the Guidelines and the value of the Fund s OTC derivative transaction with any single counter-party must not exceed 10% of the Fund s NAV; 6. The aggregate value of the Fund s investments in transferable securities, deposits and OTC derivatives issued by or placed with (as the case may be) any single issuer/institution must not exceed twenty five (25) per cent of the Fund s NAV. Where the single issuer limit is increased to thirty (30) per cent of the Fund s NAV, pursuant to section 1 above, the aggregate value of the Fund s investment must not exceed thirty (30) per cent; 7. The Fund s investments in debentures must not exceed twenty (20) per cent of the debentures issued by any single issuer; and 8. Liquid assets must be held in the form of fixed deposits with financial institutions or any other money market instrument capable of being converted into cash within seven (7) days (as may be approved by the Trustee). Note:The investment restrictions and limits mentioned herein must be complied with at all times based on the most up-to-date value of the Fund s investments. However, a five ( 5) per cent allowance in excess of the restrictions or limits is permitted where the restrictions or limits is breached through an appreciation or depreciation of the NAV (whether as a result of an appreciation or depreciation of the investments or as a result of redemption of Units or payment made from the Fund). The Manager will not make any further acquisitions to which the relevant restriction or limit is breached, and the Manager will within a reasonable period of not more than three (3) months from the date of the breach take all necessary steps and actions to rectify the breach. 5.6 Risk Management Strategies The risk management strategy undertaken by the Fund encompasses asset allocation, liquidity management and employment of hedging strategies are central to the effort in managing risks posed to the Fund. In attempting to respond to adverse market, political and economic conditions, the External Investment Manager may take temporary defensive position by maintaining up to 100% of the Fund s NAV in bonds issued by the Malaysian government and/or liquid assets. In addition to the above, the Fund is monitored and overseen by the investment committee. The investment committee serves to monitor the performance of the Fund and ensure the Fund is managed according to the investment restrictions and limits, the Guidelines and other relevant laws. 21

23 5.7 Valuation of the Fund Valuation Point The Fund will be valued on a weekly basis at the end of the Business Day on every Thursday. As the Fund will invest to foreign markets, the valuation of the Fund will be conducted on the following Business Day (T+1) due to the different time zones of the foreign markets. Accordingly, the valuation of the Fund is at the end of the Business Day on every Thursday, if Thursday is not a Business Day, the valuation point will be the following Business Day, Friday. Prices of the Units will be published on the following Business Day after the valuation point. Accordingly, for requests for redemption received before the cut-off time of 4.00 p.m. on the Business Day of, for example, Thursday, the applicable prices for those requests will be the prices published on Monday (assuming Friday is a Business Day) (T+2). Illustration: For example, at the end of the Business Day of 17 July 2014 (Thursday), the valuation of the NAV will be done on the next Business Day in which the Manager is open for business, i.e. 18 July 2014 (Friday). Accordingly, prices of the Units for 17 July 2014 will be published in the newspapers on 21 July 2014 (Monday). Information on the price of Unit for this Fund is available on our website or you may contact our offices, the telephone numbers of which are available in the Corporate Directory section of this Prospectus. Unit prices are also published daily in major newspapers. BASES OF VALUATION FOR THE FUND In undertaking any of its investments, the Manager will ensure that all the assets of the Fund are valued at fair value in compliance with the Guidelines and relevant laws at all times. Investments of the Fund are valued based on the following: Unlisted bonds Investments in unlisted RM-denominated bonds will be valued on a weekly basis using fair value prices quoted by a bond pricing agency registered with the SC. An example of such an agency is Bond Pricing Agency Malaysia Sdn. Bhd. If the Manager is of the view that the price quoted by the bond pricing agency differs from the market price by more than twenty (20) basis points, the Ma nager may use the market price provided that the Manager records the basis for not using the bond pricing agency price and obtain the necessary internal approvals for not using the bond pricing agency price. The Manager will keep an audit trail of all the decisions and basis for adopting the market yield. Non RM-denominated unlisted bonds will be valued weekly by reference to the average indicative yield quoted by three (3) independent and reputable institutions. Fixed deposits Fixed deposits placed with financial institutions are valued weekly by reference to the value of such placement and the interest accrued thereon, if any, for the relevant period. Derivatives Derivatives are marked-to-market on a weekly basis, where possible. Otherwise, the valuation will be based on fair value as determined in good faith by the Manager on methods and bases that have been verified by the auditor of the Fund and approved by the Trustee. Any changes in the value of the contracts are adjusted for, directly in the margin accounts, with corresponding recognition in the unrealised reserves. 22

24 Listed bonds In respect of Fund s investments in listed bonds, weekly valuation is based on the market price obtained at the close of the respective stock exchanges. However, if (a) a valuation based on the market price does not represent the fair value of the listed bonds, for example during abnormal market conditions; or (b) no market price is available, including in the event of a suspension in the quotation of the listed bonds for a period exceeding fourteen (14) days, or such shorter period as agreed by the Trustee, then the listed bonds would be valued at fair value, as determined in good faith by the Manager based on the methods or bases approved by the Trustee after appropriate technical consultation. Money Market Instruments Money market instruments will be valued on a weekly basis by reference to the value of such instruments as provided by financial institutions which issued the money market instruments based on the accretion of discount or amortisation of premium on a yield to maturity basis. Foreign Exchange Rate Conversion The value of the Fund s asset that is denominated in a foreign currency will be translated on a weekly basis using the bid foreign exchange rate quoted by either Reuters or Bloomberg, at United Kingdom time 4.00 p.m. the same day and will be verified by the auditor of the Fund and approved by the Trustee. 5.8 Policy on Gearing The Fund is not permitted to borrow cash or other assets (including the borrowing of securities within the meaning of the Securities Borrowing and Lending Guidelines issued by the SC) in connection with its activities. However, the Fund may borrow cash on a temporary basis for the purpose of meeting redemption requests for Units and for short-term bridging requirement. Such borrowings are subject to the following: the Fund s cash borrowing is only on a temporary basis and that borrowings are not persistent; the borrowing period shall not exceed one (1) month; the aggregate borrowings of the Fund should not exceed 10% of the Fund s NAV at the time the borrowing is incurred; and the Fund may only borrow from financial institutions. THERE CAN BE NO ASSURANCE THAT THE INVESTMENT OBJECTIVE OF THE FUND WILL BE REALISED. YOU SHOULD RELY ON YOUR OWN EVALUATION TO ASSESS THE MERITS AND RISKS OF AN INVESTMENT. YOU SHOULD READ AND UNDERSTAND THE CONTENTS OF THE PROSPECTUS AND, IF NECESSARY, CONSULT YOUR ADVISORS. 5.8 Investors Profile The Fund is suitable for investors who: prefer regular income distribution; have a medium risk tolerance; and have a Medium-Term investment horizon. 23

25 6 FEES, CHARGES AND EXPENSES 6.1 Charges Directly Incurred Below are the charges directly incurred when you purchase or sell Units of the Fund: Sales Charge The following are the maximum sales charge that may be imposed by us and our authorised distribution channels. Note: The Fund is only open for subscription during the Offer Period and no Units will be sold thereafter. Sales charge that may be imposed by our distribution channels on you are as follow: Distribution Channels Maximum rate of sales charge based on NAV per Unit of the Fund Imposed by IUTAs 2.5% Imposed by unit trust consultants 2.5% Imposed by the Manager 2.5% *Sales Charge is to be rounded to the nearest RM0.01. Note: The Manager reserves the right to waive or reduce the sales charge from time to time at its absolute discretion. Investors may negotiate for a lower sales charge through the sales and promotional campaigns from time to time or alternatively, investors may negotiate with their preferred distributors for a lower sales charge. Investment through the distributors shall be subject to their respective terms and conditions. For details of computing of Offer Price and sales charge, please refer to page 27. Redemption Charge A redemption charge of up to 3% of the NAV per Unit will be imposed on any redemption of Units made at any point of time before the Maturity Date of the Fund. Note: The redemption charge shall be retained by the Fund to cover part of the transaction cost that may have been incurred in disposing of bonds from the portfolio in order to fulfil Unit Holders redemption requests. Switching Fee Switching is not allowed. Transfer Fee The Manager reserves the right to impose such fee as may be determined by the Manager from time to time. 24

26 6.2 Fees Indirectly Incurred Below are the fees indirectly incurred when you invest in the Fund: Annual Management Fee An annual management fee of 0.50% of the NAV of the Fund per annum calculated on a daily basis will be charged by the Manager to the Fund. For details of computation of Annual Management Fee, refer to page 27. Annual Trustee Fee An annual trustee fee of 0.05% per annum of the NAV of the Fund subject to a minimum of RM18,000 per annum calculated and accrued daily(excluding foreign custodian fees and charges) is to be charged to the Fund by the Trustee. For details of computation of Annual Trustee Fee, refer to page Direct Expenses Related to the Fund The expenses which are directly related and necessary in operating and administering the Fund may be charged to the Fund are as follow: audit fees; commission/fees paid to dealers; sub-custodian fees and charges; independent investment committee member fee; tax adviser s fee; taxes and other duties imposed by the government and/or other authorities; valuation fees incurred for the valuation of any investment of the Fund by independent valuers for the benefit of the Fund; cost for annual and interim reports; cost for modification of the Deed save where such modification is for the benefit of the Manager and/or the Trustee; costs, fees and expenses incurred for any meeting of the Unit Holders save where such meeting is convened for the benefit of the Manager and/or the Trustee; and any other expenses allowed under the Deed. 6.4 Other Fees and Charges In executing your transaction, certain charges may be incurred. You shall bear the transaction charges, for instance bank charges, telegraphic charges and courier charges. 6.5 Rebates and Soft Commissions The Trustee and the Manager will not retain any rebates or otherwise share in any commission from any broker in consideration for direct dealings in the investments of the Fund. Accordingly, any rebates and shared commissions will be directed to the account of the Fund. Notwithstanding the aforesaid, we may receive goods or services by way of soft commissions provided always that the goods or services are of demonstrable benefit to the Fund or Unit Holders. Any transaction carried out by or on behalf of the Fund shall be executed on terms which are the best available for the Fund. 25

27 6.6 Policy on Rounding Adjustment In calculating your investments with the Manager, the Units allocated to you will be calculated based on the Offer Price per Unit of the Fund whereas the redemption price of the Fund will be calculated based on the NAV per Unit of the Fund that has been rounded to four decimal places. 6.7 Incorrect Pricing The Manager shall take immediate action to rectify any incorrect valuation and/or pricing of the Fund and/or the Units and to notify the Trustee and the relevant authorities of the same unless the Trustee considers the incorrect valuation and/or pricing of the Fund and/or the Units is of minimal significance. An incorrect valuation and/or pricing of the Fund and/or the Units shall result in a reimbursement of moneys unless the Trustee considers that such incorrect valuation and/or pricing of the Fund and/or the Units is of minimal significance. The Trustee shall not consider an incorrect valuation and/or pricing of the Fund and/or the Units to be of minimal significance if the error involves a discrepancy of zero point five per centum (0.5%) or more of the Net Asset Value per Unit unless the total impact on a Unit Holder s account is less thanrm An incorrect valuation and/or pricing not considered to be of minimal significance by the Trustee shall result in reimbursement of moneys and/or creation of Units in the following manner: (a) if there is an over valuation and/or pricing in relation to the redemption of Units, the Manager shall reimburse the Fund; (b) if there is an under valuation and/or pricing in relation to the redemption of Units, the Fund shall reimburse the Manager and the Manager shall reimburse the Unit Holder or former Unit Holder. THERE ARE FEES AND CHARGES INVOLVED AND THAT YOU ARE ADVISED TO CONSIDER THEM BEFORE INVESTING IN THE FUND 26

28 7 TRANSACTION INFORMATION 7.1 Pricing Policy NAV of the Fund is determined by deducting the value of all the Fund s liabilities from the value of all the Fund s assets, at the valuation point. For the purpose of computing the annual management fee and annual trustee fee, the NAV of the Fund should be inclusive of the management fee and trustee fee for the relevant day. Single pricing policy is adopted by the Manager where Units will be quoted on a single price i.e. the NAV per Unit of the Fund. The NAV per Unit is valued at the next valuation point ( forward pricing ). Under a single pricing policy, the computation for selling price and redemption price will be based on the NAV per Unit of the Fund. During Offer Period, the selling price per Unit and redemption price per Unit is equivalent to the Offer Price. After the Offer Period, the redemption price per Unit of the Fund will be determined using forward pricing which is the NAV per Unit for the Fund as at the next valuation point after redemption request is received by the Manager. Units will only be sold at the Offer Price during the Offer Period. The NAV of the Fund is calculated weekly on every Thursday. It is the sum of the value of all investments and cash held by the Fund (calculated in accordance with the Deed) including income derived by th e Fund which has not been distributed to Unit Holders, less all amounts owing or payable in respect of the Fund including any provisions that the Trustee or the Manager consider should be made at the same valuation point. Illustration on how NAV Per Unit are calculated (where the annual management fee is 0.50% and Trustee fee is 0.05% ) Investment of the Fund RM 135,008, Other assets & income RM 383, RM 135,392, Less liabilities RM 68, NAV before deducting management fee and trustee fee for the day Less management fee for the day (0.50% per annum) [(0.50% x RM135,324,027.39) 365 Days] Less trustee fee for the day (0.05% per annum) [(0.05% x RM135,324,027.39) 365 Days] RM 135,324, RM 1, RM NAV RM 135,321, Units in circulation 270,000, NAV per Unit RM NAV per Unit (rounded up to four decimal places) RM

29 Determining the Net Investment Amount and Units Entitlement During the Offer Period, the Offer Price per Unit is fixed at RM Determining the Net Investment Amount & Units Entitlement Amount payable by investor RM 10, Less: sales charge (2.5%) RM Net investment amount RM 9, Assuming the Fund s NAV per Unit is RM1.0000, the number of Units allocated rounded up to two decimal places, would be: Net investment amount RM 9, Divided by NAV per Unit RM Number of Units allocated 9,750 Determining the redemption amount Investors may redeem their investment on every Thursday before 4.00 p.m. by giving the redemption notice to the Manager. The redemption amount is calculated by multiplying the NAV per Unit at the next valuation point after the Manager receives the redemption application, with the number of Units held. Example: Determining the redemption amount Number of Units to be redeemed 20, If for example, the NAV per Unit calculated at the next valuation point is RM0.5000, the redemption value, would be: Multiply by NAV per Unit RM Redemption value RM 10, Less redemption charge RM Net amount payable to investor RM 9, Application and Redemption Purchase of Units Application must be made by completing the account opening form and investment form which accompany this prospectus and they are available at all TAIM offices or at authorised distributors. The completed application forms, together with the remittance of moneys in the form of personal cheques, banker s cheques, bank drafts, money orders or postal orders must be submitted to the main business office of TAIM or at any of its branch offices* or authorised consultants. Bank charges will be borne by investors. The validity of the transaction is dependent upon clearance of the payment made to us. A copy of the applicant s identity card or passport or other document of identification must accompany the application for individual or joint-applicant. A copy of FiMM pre-investment form and investor suitability assessment form must be attached together with all the applications. Application by a corporation must be accompanied by where applicable, a certified true copy of the board resolution, certificate of incorporation, memorandum and articles of association, merging and acquisition, form 24, form 44, form 49, the latest audited financial statement, a list of the authorised signatories and their respective specimen signatures. Any application forms received through fax will only be deemed complete after TAIM receives the original copy of the form together with the remittance of moneys. Receipt of fax copy should not be an indication of acceptance of application or completion of transaction. TAIM shall not be responsible for applications 28

30 not processed as a result of incomplete transmission of fax. Valid application received by TAIM s office before 4.00 p.m. be it via fax, send in by post or walk-in, will be processed based on Offer Price *For details of the business office of TAIM or at any of its branch offices, refer to page 8. INVESTORS ARE ADVISED NOT TO MAKE PAYMENT IN CASH WHEN PURCHASING UNITS OF A FUND VIA ANY INSTITUTIONAL/ RETAIL AGENT. Redemption Withdrawals can be made by completing a transaction form available from any TAIM office and returning it to TAIM or by sending written instructions to any TAIM office. If you give us written instructions, your letter should include: (a) (b) (c) (d) your Account Number; the name of the Fund you wish to withdraw from; and the number of Units that you require (to withdraw or be redeemed); and instructions on what TAIM should do with the moneys (e.g. credit into your bank account or send a cheque to your address). Any valid withdrawal request received by TAIM s offices on every Thursday before 4.00 p.m. will be processed based on the NAV per Unit calculated at the end of the Business Day on which the request to redemption was received ( forward pricing ). A request received after 4.00 p.m. will be deemed to have been received on the next Thursday. However, if the Thursday is not a Business Day, Unit Holders may make redemption request on the following Business Day which is Friday. Units will be redeemed at the NAV per Unit of the Fund as the next valuation point after the receipt of redemption request ( forward pricing ). The redemption proceeds that you will receive is based on the Units you have requested to be withdrawn multiplied by the NAV per Unit calculated at the close of the Business Day as described above. Provided that the completed documentation is received with the withdrawal request, the proceeds will be paid within ten (10) days according to your settlement instructions. Should there be any discrepancies between the published price and the price adopted by us, our price shall be adopted instead of the price published in the newspapers. We can ensure that the prices forwarded to the newspapers are accurate; however we cannot assume any responsibility or be liable for any error in the published prices. Switching Switching is not allowed for this Fund. Transfer of Units Transfer of Units is permissible provided that a Unit Holder holds a minimum of 500 Units in his account if he wishes to remain as a Unit Holder. The Manager may request the Unit Holders to redeem all of their Units if the number of Units they hold falls below the minimum holding amount. Further, the Manager has the right to impose an administrative charge as may be determined by the Manager. Cooling-Off A cooling-off right is only given to qualified investor. A qualified investor is a person who is investing in any of the unit trust funds managed by us for the first time but shall not include the following persons: a corporation or institution; our staff; and a person registered with a body approved by the SC to deal in unit trusts. There is a cooling-off period of six (6) Business Days from the day your application is accepted or deemed to be accepted by the Manager. Within these six (6) Business Days, you have a right to request 29

31 for withdrawal of the investment. The refund for every unit held by you pursuant to the exercise of your cooling off right would be the sum of: (a) the Offer Price of the Units on the day the Units were purchased; and (b) the sales charge per Unit originally imposed on the day the Units were purchased. All such requests must be received by us on or before 4:00 p.m. on a Business Day. Requests received after 4:00 p.m. will be treated as having been received on the following Business Day. If you submit your payment by cheque, the cooling-off period will start from the date which the Manager receives the cheque and payment for the cooling-off will be made after the cheque has been cleared. Proceeds would generally be refunded within ten (10) days of receiving the request for withdrawal. 7.3 Distribution Policy Subject to the availability of income, the Fund will distribute income annually. Note: The Fund s income distributions are NOT guaranteed and subject to the continuing ability of the issuers of the Fund s bond s investments to meet their respective outstanding financial obligations. Investors are advised to evaluate their risk tolerance and investment time horizon before investing in the Fund. 7.4 Unclaimed Moneys Policy The Manager shall deal with all unclaimed moneys in accordance with the Unclaimed Moneys Act Payment Methods Payment for the investment can be made together with the completed application form by any of the following methods: (a) Cheque/ Bank Drafts/ Money Order/ Cashier s Order Any of the above instruments drawn on a bank in Malaysia may be used to make payment for your investment. The name to which the payment is to be made is TA Investment Management Berhad. (b) Cash Cash may be accepted when the purchase of Units is done at TAIM s Head Office subject to a maximum of RM1,000 per application. Note: The payment method by cash is subject to cancellation and/or any changes in TAIM s internal policy. (c) Telegraphic Transfer Payment made via telegraphic transfer can be credited into our Maybank account, details of which are as follows: Account Number Account Name TA Investment Management Berhad INVESTORS ARE ADVISED NOT TO MAKE PAYMENT IN CASH WHEN PURCHASING UNITS OF THE FUND VIA ANY IUTAS/ UNIT TRUST CONSULTANTS. 30

32 7.6 How to Buy, Sell, Switch and Transfer Transaction Documents Required Minimum Amounts Documents to be received by investors Initial Investment Individuals: Completed account opening form (required if you are a new applicant); Completed investment form; Completed FiMM pre-investment form; Completed investor suitability assessment form; Legible copy of NRIC / passport; For applicants below 18 years of age (joint holder), a copy of identity card or birth certificate is required; and Proof of payment. Corporate Investments: Completed account opening form; Completed investment form; A certified true copy of the board resolution with list of authorised signatories and company seal (if applicable), certificate of incorporation, merging and acquisition, form 24, 44 and 49; The latest financial statement; and Proof of payment RM1,000 Successful applicants will be issued a transaction advice slip Unsuccessful applicants will be notified & application money will be refunded within thirty (30) days of receipt of the application. Additional Investments Individuals: Completed investment form; and Proof of payment Corporate Investments: Completed investment form; A certified true copy of board resolution with list of authorised signatories and company seal (if applicable); and Proof of payment RM100 Note: Additional investments may be made during the Offer Period only. Transaction advice slip Redemption (Sell) Transfer Completed & signed transaction form; Written instructions clearly stating account number, Fund s name, the number of units to be sold and settlement instructions; and Legible copy of NRIC (if applicable) Completed and signed transfer form; Legible copy of NRIC / passport; and If the transferee if NEW account holder:- Completed account opening form Completed FiMM pre-investment form Completed investor suitability assessment form Legible copy of NRIC/ passport 500 Units Redemption payment Acknowledgement letter Transaction advice slip 500 Units Transaction advice slip 31

33 Cooling-Off Completed cooling-off form within six (6) Business Day from the day the application is accepted OR Written instructions clearly stating your intention to cool off the transaction, the value of investment, Fund s name and instruction. N/A Transaction advice slip Payment for cooling-off Cooling-off notification letter. There are no restrictions as to the frequency of redemption to be made on any of the funds managed by us. Note: In the case of a partial redemption of Units or transfer, the minimum balance that must be retained in the Fund is 500 Units. If the value of the remaining investments is below the minimum requirement, all Units held by Unit Holder will be redeemed automatically. 32

34 8 THE MANAGEMENT COMPANY 8.1 The Manager The Manager of the Fund is TA Investment Management Berhad ( TAIM ). TAIM was incorporated on 17 April 1995 under the Companies Act, 1965 and commenced operations on 1 July TASH, a wholly owned subsidiary of TAE, is the holding company of TAIM. TAE, an investment holding company listed on Bursa Malaysia, has years of exposure and experience in investing in the Malaysian securities markets. The principal activities of TAIM are the establishment and management of unit trust funds and portfolio clients. TAIM has more than sixteen (16) years of experience in managing unit trust funds. Currently, TAIM manages twenty one (21) unit trust funds namely TA Growth Fund, TA Comet Fund, TA Islamic Fund, TA Income Fund, TA Small Cap Fund, TA High Growth Fund, TA Dana OptiMix, TA CashPLUS Fund, TA Islamic CashPLUS Fund, TA South East Asia Equity Fund, TA Global Asset Allocator Fund, TA Asia Pacific Islamic Balanced Fund, TA European Equities Fund, TA Asian Dividend Income Fund, TA Dana Fokus, TA All-Cycle Commodities Income Fund, TA Select Titans In Asia Capital Protected Fund, TA BRIC and Emerging Markets Fund, TA Global Technology Fund, TA Total Return Fixed Income Fund, TA Asia Pacific REITs Income Fund and one (1) wholesale fund, TA Australia Income Fund I. Apart from being able to tap into the expertise of the staff and financial resources of its shareholders, TAIM has a staff capacity of fifty three (53) persons comprising forty two (42) executives and eleven (11) non - executives. As at 31 March 2014, the fund size managed by TAIM (excluding private client portfolio) stood at RM million. 8.2 Roles, Duties and Responsibilities of the Manager TAIM is responsible for the day to day management of the Fund and for the development and implementation of appropriate investment strategies. The main tasks performed by TAIM include: managing investments portfolio processing the sale and redemption of units; keeping proper records for the Fund; valuing investments of the Fund; and distributing income and additional units to the Unit Holders. 8.3 Summary of TAIM s Financial Position Year Ended 31/01/2014 (unaudited) (RM) Year Ended 31/01/2013 (RM) Year Ended 31/01/2012 (RM) Issued and paid-up capital 6,001,000 6,001,000 6,001,000 Shareholders funds 10,672,609 11,630,128 12,101,597 Revenue 13,071,210 13,586,816 15,938,161 Pretax profit / loss (957,519) (471,469) (29,235) After tax profit / loss (957,519) (471,469) (29,535) 33

35 8.4 Board of Directors Mr. Choo Swee Kee, CFA (Non-Independent) Mr Choo Swee Kee is the designated person responsible for the investment management of the Fund. He joined TAIM in July, 2005 as Deputy Chief Investment Officer. He was promoted to his current role of Chief Investment Officer in December 2006 where he is responsible for implementing the investing strategy of funds and managing the company s portfolio. After graduation, he joined the accounting group, Coopers & Lybrand in 1987 as a senior. Between 1990 and 1999, Mr Choo gained valuable knowledge and experience in the investment line working for Chase Manhattan Bank, N.A. in Singapore, Schroders Investment Management (Singapore), Vickers Ballas Research (Malaysia) and Daiwa Securities Adviser (Malaysia). Prior to joining TA Group, he was the Chief Investment Officer of KLCS Asset Management Sdn Bhd. He has more than 19 years of investment managerial experience and has actively participated in the management of equity and balanced funds for both institutional and private clients. Mr Choo earned a BBA from the National University of Singapore and holds the Chartered Financial Analyst (CFA) designation. Dr. Wong Hong Meng, (Independent) An economics graduate from the University of Malaya with a Master of Business Administration from Cranfield Graduate School of Management, Dr Wong Hong Meng earned his Doctor of Business Administration from the University of South Australia in Professionally he was a Fellow of the Institute of Chartered Accountants in England and Wales. Currently he is a Chartered Accountant member of the Malaysian Institute of Accountants and an Associate member of the Institute of Chartered Secretaries and Administrators. He has more than 31 years of experience in management consultancy, merchant banking, commercial banking and stock broking. In January 1999, he retired as the Executive Director of TA Enterprise Berhad. After retirement he remained active in the business world and had served as an independent non-executive director and chairman of the audit committee of two companies listed on Bursa Securities Malaysia Berhad. Currently he is an independent non-executive director and member of the audit committee of two other listed companies. Puan Zainab Binti Ahmad (Non-Independent) Puan Zainab Binti Ahmad holds a Bachelor in Business Administration Degree from the Institut Teknologi Mara/University of Ohio. She started her career in June 1983 with A.T. Securities Sdn Bhd as the General Manager. She then joined TA Securities Sdn Bhd as Director in December 1987 till October She was then appointed as Executive Director of TA Enterprise Berhad on 13 March 1990, a position she holds to-date. She also sits on the Boards of TA Global Berhad, a public listed company; TA Centre Berhad, a public company which is a wholly-owned subsidiary of TA Enterprise Berhad and a number of companies within the TA Enterprise Berhad Group. Mr. Christopher Koh Swee Kiat (Independent) Mr Christopher Koh Swee Kiat graduated from the Law Faculty of University of Malaya in 1992 and was called to the High Court of Malaya as an Advocate and Solicitor in March He also holds an ACCA postgraduate diploma in Accounting and Finance. He was previously attached with the Corporate Department of Messrs Chooi & Company. Thereafter, he joined TA Securities Berhad as Assistant Manager in November He was appointed the Head of Legal Affairs Department. Thereafter, he has negotiated and prepared the legal documentation for the various overseas ventures of the company including a bank and stockbroking companies in various countries. He was also the company secretary of The Chase Manhattan (M) Berhad (now known as JP Morgan Chase). In 2001, he was Vice President for MasterCard International in its Asia Pacific regional office in Singapore. He joined Messrs Chris Koh & Chew (formerly known as GH Tee & Co (KL branch)), Advocates & Solicitor in October He was appointed to the Board of TA Enterprise Berhad as Independent Non-Executive Director on 24 May 2006, a position he holds to-date. He also sits on the Audit Committee, Nomination and Remuneration Committee of TA Global Berhad. In addition, he also sits as a member of the Investment Committee of Mizuho Asean Investment LP. 34

36 He specialises in corporate, commercial and finance matters including merger and acquisitions, corporate restructuring, joint ventures, corporate finance, listing of companies, private equity acquisition and matters relating to aviation laws. Now also an Independent Non-Executive Director of the company, his scope of responsibilities includes extending legal advice and assisting in the acquisition of business interests on behalf of the company. 8.5 Key Management Personnel Mr. Wong Mien, Chief Executive Officer He is responsible for the overall direction and supervision of the company. He graduated from the University of Malaya with a Bachelor of Science (Honours) majoring in Mathematics in 1987, th en qualified as a Certified Financial Planner (CFP) in He has since garnered over 2 4 years of experience in the financial industry while working with American International Assurance Berhad, HLB Unit Trust Management Berhad and Alliance Investment Management Berhad. This included being involved in the management of a unit trust company while serving as the General Manager of KL City Unit Trust Berhad from He took the helm at TAIM in March Cik Siti Saliza Binti Md Idris, Head of Compliance She is the designated person responsible for compliance matters of TAIM and the Fund. Cik Siti Saliza graduated from Institut Teknologi Mara with a Diploma in Investment Analysis in 1998 and then obtained BBA (Hons) Finance from Universiti Teknologi Mara in year She has more than 12 years of experience in the financial service industry including banking, fund management and unit trust. Ms. Tee Ling Ling, Head of Institutional Unit Trust Advisors (IUTA) She is responsible for the sales and marketing of the TAIM unit trust funds that are distributed through the IUTAs. Ms Tee holds Bachelor of Business Administration (Hons) Degree in Finance from University Kebangsaan Malaysia. She has more than 11 years of experience in financial services industry covering a diverse range of areas ranging from branch servicing, treasury processing as well as private banking sales support. Prior to her current position, she was serving as a Relationship Manager in one of the top three unit trust company in Malaysia. Mr. Allen Yap Hui Hock, Head of Agency He has been involved with stock market and investment industry since He has more than 18 years of experience in the financial services industry. In 1998, Allen achieved the best overall student in Diploma with Research Institute and Investment Analysis of Malaysia (RIIAM) organized by KLSE and RMIT University of Australia. He achieved his MBA in Personal Financial Planning from USQ University of Southern Queensland, Australia and Degree with Distinction in Business and Business Administration from RMIT, Australia. Allen has been involved with Financial Planning Industry in Malaysia since 2001 and has acted as a Program Manager for FPAM and as the co-writer for CFP, module 1. Ms. Alicia Khor Swee Chin, Head of Operations Ms. Alicia has more than 16 years of working experience in unit trust industry. She is responsible for the smooth running of the operation function of the company which includes processing of all Unit Holders application and enhancement of the Unit Holder system. 35

37 8.6 Investment Committee Main Functions of the Investment Committee The investment committee s main responsibility is to formulate, implement and monitor the investment management policies of the investment managers to achieve the investment objective of a particular Fund. The investment committee meets at least once a month or as and when the need arises. The investment committee members have years of experience in overseeing the investment management functions as required by the pertinent guidelines. Mr. Choo Swee Kee(Non-Independent) as aforementioned. Dr. Wong Hong Meng(Independent) as aforementioned. Mr. Tay Kian Chuan(Independent) Mr. Tay Kian Chuan graduated from North East London Polytech, London in 1977 with a Bachelor of Science (Hons) Applied Economics and subsequently obtained a Post Graduate Diploma in Financial Economics from University of Wales. He is experienced in the finance and stockbroking industry. He was the Chief Forex and Money Market Dealer for D&C Bank in Kuala Lumpur. Thereafter, he joined D&C Nomura Bank as Corporate Finance Assistant Manager, BSN Commercial Bank as Senior Manager and Treasurer and Pengkalen Securities as Senior Manager respectively. 8.7 Investment Team The investment team is responsible for managing, realising, investing or howsoever dealing in accordance with the investment objectives of the Fund. The investment team shall have discretionary authority over the investments of the Fund subject to the Securities Commission Guidelines on Unit Trust Funds, the relevant securities laws, the internal procedures as well as the direction of the investment committee of the Fund. The investment team of TAIM is headed by the Chief Investment Officer, Mr. Choo Swee Kee who is also the designated person responsible for the investment management of the Fund. The team will report directly to the investment committee on a regular basis on the status of the portfolio of the Fund, proposed investment strategy and discuss matters relating to the portfolio. The main personnel in the investment team are: Mr. Choo Swee Kee, as aforementioned. Mr. Lam Chee Mun, Fund Manager of TAIM Mr. Lam Chee Mun, is the fund manager for TAIM. He holds a Bachelor of Business (BBBA) Degree from RMIT University, Australia. His responsibilities cover fixed income credit evaluation and regional equity investment research. He works closely with the investment team on fixed income, money market and equity investment of TAIM funds. He is also involved in structured products and fund of funds investment of TAIM. Prior to joining TAIM, Mr. Lam was attached to KL Unit Trust Berhad as a Compliance Manager for 4 years and a local stockbroking company for 6 years. Ms. Jennifer Mak Fong Ching, Fund Manager of TAIM Ms. Jennifer has 15 years of experience in the fund management and stockbroking industry. She has been with TAIM as fund manager since October Prior to joining TAIM, she was in a research and portfolio management role (for both the local and regional markets) for 6 years in SJ Asset Management Sdn Bhd. Prior to this, she worked as an investment analyst at Deutsche Securities for 3 years, 36

38 specialising in the Malaysian banking, finance, insurance and stockbroking sectors. Jennifer has also worked in various accounting roles with JB Were & Son, one of Australia s largest stockbroking firms for 2 years ( ). Besides experience in the equity markets, she has experience in banking, having worked in the credit recovery divisions of Asia Commercial Finance Bhd and KwongYik Bank Bhd, as well as with Danaharta, the national loan recovery and rehabilitation body. She has also worked as accountant in a local property development company for a year. She obtained her professional accounting experience from Price Waterhouse (now known as Price Waterhouse Coopers) where she worked for 3 years and secured membership with the Malaysian Institute of Certified Public Accountants (MICPA). Jennifer holds a Bachelor of Accounting degree (Honours) from University of M alaya and is also an Australian Certified Practising Accountant (FCPA) member. En. Muhammad Masyhur Abdullah, Fund Manager of TAIM He joined TAIM in July 2010 as investment analyst. He holds a Bachelor of Financial Engineering (Hons) from Multimedia University (MMU), Malaysia. He has more than 3 years of experience in conducting investment research in Malaysia and regional markets, specialising in telecommunication, glove makers and media sectors. Prior to joining TAIM, he has works with a major telecommunication company in Malaysia. 8.8 Material Litigation and Arbitration As at 31 March 2014, TAIM is not engaged in any material litigation and arbitration, including those pending or threatened, and is not aware of any facts likely to give rise to any proceedings which might materially affect the business/financial position of the Manager and any of its delegates. 37

39 9 EXTERNAL INVESTMENT MANAGER 9.1 Fullerton Fund Management Company Ltd s Profile Fullerton Fund Management Company Ltd (Fullerton) is a wholly-owned entity of Temasek Holdings. Prior to its establishment in 2003, Fullerton s investment team operated as an internal fund management division within Temasek Holdings, managing its capital resources since Fullerton is helmed by an experienced and independent Board of Directors, which provides robust corporate governance and strategic directions to the firm, while its strong parentage provides stability to their business. As a business, Fullerton is an Asian specialist and its expertise extends across multiple asset classes including equities, fixed income, money market, currencies and alternatives. Today, Fullerton manages around US$9.4b (as at 31 March 2014) in institutional mandates and mutual funds on behalf of clients across Asia Pacific, Europe and the Americas. 9.2 Roles, Duties and Responsibilities of External Investment Manager Fullerton Fund Management Company Ltd (Fullerton) will be managing the bond portfolio of the Fund accordance to the guidelines as per the investment management agreement. The investment process will be driven by the External Investment Manager s interest rate outlook over the fixed maturity term; as well as credit quality and yield considerations of the bonds. The External Investment Manager will analyse and select the bond investments of this Fund which are expected to provide regular coupons so as to enable the Fund to provide regular distribution to investors. Once selected, the External Investment Manager will implement buy and hold-to-maturity strategy. Upon maturity of the Fund, the External Investment Manager will liquidate all bonds and return the proceeds to the investors. 9.3 Key Personnel of the External Investment Manager Melvin Lee, Senior Vice President/Portfolio Manager Melvin is a member of the fixed income team. In his current role, he is responsible for the management of Fullerton s Singapore dollar bond portfolios and is the lead credit fund manager covering credit research and strategy. Besides that, he is the designated person from the External Investment Manager that is responsible for the investment management of the Fund. Melvin has 12 years of experience in the fixed income market and joined Fullerton in Prior to Fullerton, Melvin was with Lion Global Investors, managing synthetic collateral debt obligation and doing credit analysis of global corporate bonds. He also worked in UOB Asset Management, primarily covering US and European corporate bonds, and managing Singapore dollar bond portfolios as well as money market funds. Melvin graduated from Nanyang Technological University with a Bachelor of Business Degree (Honours) in He was awarded the NTU scholarship where he obtained his Master of Business (Banking & Finance) in Melvin was voted by The Asset magazine as one of the most astute investors (ranked individuals) for houses with more nominated astute investors in 2009, and one of the most astute investors (highly recommended) in 2010 and 2011 respectively. He is also a CFA charter holder. 38

40 10 THE TRUSTEE CIMB Commerce Trustee Berhad was incorporated on 25 August 1994 and registered as a trust company under the Trust Companies Act, 1949 and having its registered office at Level 13, Menara CIMB, Jalan Stesen Sentral 2, Kuala Lumpur Sentral, Kuala Lumpur. The Trustee is qualified to act as a trustee for collective investment schemes approved under the Capital Markets and Services Act, CIMB Commerce Trustee Berhad has an authorised capital of RM5,000,000 divided into 500,000 ordinary shares of RM10 each of which the total issued capital is RM3,500,000 divided into 350,000 ordinary shares of RM10 each, and the total paid up capital is RM1,750,000 divided into 350,000 ordinary shares of RM10 each and partly paid-up at RM5 each Experience in Trustee Business As at 31 March 2014, CIMB Commerce Trustee Berhad acts as trustee to one (1) real estate investment trust fund, sixty (60) unit trust funds, one (1) private retirement scheme (consisting of four (4) funds) and twelve (12) wholesale funds. In addition to overseeing these funds, CIMB Commerce Trustee Berhad also acts as trustee to private debt securities issues such as bonds and notes. Other than being the administrator of deceased s estates, executor of wills, trustee for minors or incapacitated persons, CIMB Commerce Trustee Berhad also acts as trustee for public, charitable, staff retirement, and pension/ gratuity fund scheme, custodian trustee for associations, clubs and others. CIMB Commerce Trustee Berhad is supported by twenty one ( 21) staffs of which comprising of twenty one (21) executives as at 31 March Trustee s Financial Information As at 31/12/2013 RM 000 (unaudited) Year Ended 31/12/2012 RM 000 Year Ended 31/12/2011 RM 000 Year Ended 31/12/2010 RM 000 Paid-up Capital 1,750 1,750 1,750 1,750 Shareholders Funds 11,386 8,600 6,601 6,497 Turnover 8,502 7,917 6,289 7,113 Profit before Tax 4,216 2,596 1,802 2,588 Profit after Tax 2,786 1,999 1,354 1,936 39

41 10.3 Board of Directors The following table sets out information regarding the Board of Directors of CIMB Commerce Trustee Berhad:- Name Zahardin Omardin Chan Swee Liang Carolina Liew Pik Yoong Directorship Non-Executive, Independent Director & Chairman Non-Executive, Non-Independent Director Executive, Non-Independent Director 10.4 Key Management Staff Liew Pik Yoong (Head/Director, Group Trustee Services) Ms Liew is responsible for the overall business direction and management of the trustee company. She joined CIMB in January 2011 and has more than twenty five (25) years experience in the financial market and securities industry. Prior to joining CIMB, she held the positions of Head/Director, Investors & Intermediaries and Head, Securities Services for custody and fund services product with a local international bank. Prior to that, she was Chief Operating Officer with a local foreign-owned trustee company and was Vice-President / Head of Department with a local foreign bank where she was responsible for custody services in addition to supporting share margin and unit trust product. She has a degree in the Institute of Chartered Secretaries & Administrators. Lee Kooi Yoke (Chief Operating Officer) Ms Lee holds a Bachelor Degree in Administration (Finance) from Griffith University, Australia; and a member of CPA Australia, Malaysia Institute of Accountant and Financial Planning Association Malaysia. She has more than twenty one (21) years of working experience in the financial industry. Prior to joining CIMB group, she headed the operations of a unit trust management company responsible for transfer agency, investment back-office, system projects and retail and corporate agency operations and before this position, she headed the investment operations of the most established insurance company in Malaysia and Singapore. Ng Lai Peng (Director, Corporate Trust) Ms. Ng holds a Bachelor of Arts ( Honours) Degree in Business Administration from the University of Bolton and London Chamber of Commerce & Industry (LCCI) qualification and has more than ten (10) years of experience in accounting and trust operations. Law Oi Meng (Associate Director Corporate Trust) Ms. Law holds a Bachelor Degree in Information Technology from the University of Southern Queensland and has more than ten (10) years of working experience in developing and implementing IT systems and trust operations. Linda Ong Gaik Bee (Director - Legal and Compliance) Ms.Ong holds a degree in Bachelor of Law from University of Buckingham, in England, UK and was admitted to the Malaysian Bar as an Advocate and Solicitor prior to joining the trust industry. She is currently overseeing the legal and compliance of CIMB group. She has more than nine (9) years of experience in the trust industry. Azida Binti Abdul Aziz (Associate Director Corporate Trust) Puan Azida holds a Diploma in Accountancy from Universiti Teknologi Mara. She has more than six (6) years experience in trust operations. 40

42 10.5 Roles, Duties and Responsibilities of the Trustee The Trustee s functions, duties and responsibilities are set out in the Deed. The general functions, duties and responsibilities of the Trustee include, but are not limited to the following: (a) (b) Take into custody the investments of the Fund and hold the investments in trust for the Unit Holders; Ensure that the Manager operates and administers the Fund in accordance with the provisions of the Deed, the Guidelines and acceptable business practice within the unit trust industry; (c) As soon as practicable notify the Securities Commission of any irregularity or breach of the provisions of the Deed, SC Guidelines and any other matters which in the Trustee's opinions may indicate that the interests of Unit Holders are not served; (d) Exercise reasonable diligence in carrying out its functions and duties, actively monitoring the operations and management of the Fund by the Manager to safeguard the interests of Unit Holders; (e) Maintain, or cause the Manager to maintain, proper accounting records and other records as are necessary to enable a complete and accurate view of the Fund to be formed and to ensure that the Fund is operated and managed in accordance with the Deed of the Fund, Prospectus, the Guidelines and securities law; and (f) Require that the accounts be audited at least annually. The Trustee has covenanted in the Deed that it will exercise all due diligence and vigilance in carrying out its roles, duties and responsibilities, and in safeguarding the rights and interests of Unit Holders Trustee s Statement of Responsibility The Trustee has given its willingness to assume the position as trustee of the Fund and all the obligations in accordance with the Deed, all relevant laws and rules of law Trustee s Declaration The Trustee is independent of the Manager. The Trustee will carry out transactions on an arm s length basis and on terms which are best available for the Fund, as well as act at all times in the best interest of the Fund s unitholders. The Trustee also has adequate procedures and processes in place to prevent or control conflicts of interest Trustee s Delegate CIMB Commerce Trustee Berhad has appointed CIMB Group Nominees (Tempatan) Sdn Bhd as the Trustee s delegate to perform custodial function. CIMB Group Nominees (Tempatan) Sdn Bhd is a wholly owned subsidiary of CIMB Bank Berhad. Its custodial function includes safekeeping, settlement and corporate action related processing and cash security reporting. All investments are automatically registered in the name of the Fund. CIMB Group Nominees (Tempatan) Sdn Bhd acts only in accordance with instructions from the Trustee. 41

43 10.9 Trustee s Obligation The Trustee s obligation in respect of monies paid by an investor for the application of units arises when the monies are received in the relevant account of the Trustee for the Funds and the Trustee s obligation is discharged once it has paid the redemption amount to the Manager Material Litigation & Arbitration As at 31 March 2014, CIMB Commerce Trustee Berhad is not engaged in any material litigation and arbitration, including those pending or threatened, and is not aware of any fact likely to give rise to any proceedings which might materially affect the business or financial position of CIMB Commerce Trustee Berhad or any of its delegates. 42

44 11 SALIENT TERMS OF DEED 11.1 Your Rights and Liabilities as a Unit Holder Rights of Unit Holders As a Unit Holder of the Fund, and subject to the provisions of the Deed, you have the right: to receive the distributions of income (if any); to participate in any increase in the value of the Units; to call for Unit Holders meetings, and to vote for the removal of the Trustee or the Manager through a Special Resolution; to receive annual and interim reports on the Fund. No Unit Holder shall be entitled to require the transfer to him of any of the assets of the Fund or be entitled to interfere with or question the exercise by the Trustee, or the Manager on its behalf, of the rights of the Trustee as the registered owner of such assets. Liabilities of Unit Holders As a Unit Holder of the Fund, and subject to the provisions of the Deed, your liabilities would be limited to the following: 1. No Unit Holder shall by reason of any provision of the Deed and the relationship created between the Manager, the Trustee and the Unit Holders, or in any event whatsoever, be liable for any amount in excess of the purchase price paid for the Units as determined in accordance with the Deed at the time the Units were purchased and any charges payable in relation thereto. 2. A Unit Holder shall not be under any obligation to indemnify the Manager and/or Trustee in the event that the liabilities incurred by the Manager and/or Trustee in the name of or on behalf of the Fund pursuant to and/or in the performance of the provisions of the Deed exceed the value of the assets of the Fund, and any right of indemnity of the Manager and/or the Trustee shall be limited to recourse to the Fund Maximum Fees and Charges Permitted by the Deed The following are the maximum fees and charges allowable by the Deed: Direct Fees And Charges Sales Charge Redemption Charge 5.00% of the Offer Price per Unit. 5.00% of the NAV per Unit. Indirect Fees And Charges Annual Management Fee Annual Trustee Fee 2.00% per annum of the NAV of the Fund calculated and accrued on a daily basis. 0.20% per annum of the NAV of the Fund subject to a minimum of RM18,000 per annum calculated and accrued daily (excluding foreign custodian fees and charges). 43

45 11.3 Procedures to Increase the Direct and Indirect Fees and Charges Sales Charge A higher sales charge than that disclosed in the Prospectus may only be imposed if: (a) the Manager has notified the Trustee in writing of and the effective date for the higher charge; (b) a supplemental/replacement prospectus in respect of the Fund setting out the higher charge is issued; and (c) such time as may be prescribed by any relevant law has elapsed since the effective date of the supplemental/replacement prospectus. Redemption Charge A higher redemption charge than that disclosed in the Prospectus may only be imposed if: (a) the Manager has notified the Trustee in writing of and the effective date for the higher charge; (b) a supplemental/replacement prospectus in respect of the Fund setting out the higher charge is issued; and (c) such time as may be prescribed by any relevant law has elapsed since the effective date of the supplemental/replacement prospectus. Annual Management Fee The Manager may not charge an annual management fee at a rate higher than that disclosed in the Prospectus unless: (a) the Manager has come to an agreement with the Trustee on the higher rate in accordance with clause of the Deed; (b) the Manager has notified the Unit Holders of the higher rate and the date on which such higher rate is to become effective; (c) a supplemental/replacement prospectus stating the higher rate is issued thereafter; and (d) such time as may be prescribed by any relevant law shall have elapsed since the supplemental/replacement prospectus is issued. Annual Trustee Fee The Trustee may not charge an annual trustee fee at a rate higher than that disclosed in the Prospectus unless: (a) the Manager has come to an agreement with the Trustee on the higher rate; (b) the Manager has notified the Unit Holders of the higher rate and the date on which such higher rate is to become effective; (c) a supplemental/replacement prospectus stating the higher rate is issued thereafter; and (d) such time as may be prescribed by any relevant law shall have elapsed since the supplemental/replacement prospectus is issued. 44

46 11.4 Procedures to Increase the Maximum Rate of the Direct and Indirect Fees and Charges in the Deed The maximum sales charge, redemption charge, annual management fee or annual trustee fee set out in the Deed are not allowed to be increased unless a Unit Holders meeting has been held in accordance with the Deed. A supplemental deed proposing a modification to the Deed to increase such charges is required to be submitted for registration with the SC accompanied by a resolution of not less than twothirds (2/3) of all Unit Holders at the Unit Holders meeting sanctioning the proposed modification to the Deed Permitted Expenses Only the expenses (or parts thereof) which are directly related and necessary in operating and administering the Fund may be charged to the Fund. These would include (but are not limited to) the following: (a) commissions/fees paid to dealers in effecting dealings in the investments of the Fund, shown on the contract notes or confirmation notes; (b) taxes and other duties charged on the Fund by the government and/or other authorities; (c) costs, fees and expenses properly incurred by the auditor; (d) costs, fees and expenses incurred for the valuation of any investment of the Fund by independent valuers for the benefit of the Fund; (e) costs, fees and expenses incurred for any modification of the Deed save where such modification is for the benefit of the Manager and/or the Trustee; (f) costs, fees and expenses incurred for any meeting of the Unit Holders save where such meeting is convened for the benefit of the Manager and/or the Trustee; (g) costs, commissions, fees and expenses of the sale, purchase, insurance and any other dealing of any asset of the Fund; (h) costs, fees and expenses incurred in engaging any specialist approved by the Trustee for investigating or evaluating any proposed investment of the Fund; (i) costs, fees and expenses incurred in engaging any valuer, adviser or contractor for the benefit of the Fund; (j) costs, fees and expenses incurred in the preparation and audit of the taxation, returns and accounts of the Fund; (k) costs, fees and expenses incurred in the termination of the Fund or the removal of the Trustee or the Manager and the appointment of a new trustee or management company; (l) costs, fees and expenses incurred in relation to any arbitration or other proceedings concerning the Fund or any asset of the Fund, including proceedings against the Trustee or the Manager by the other for the benefit of the Fund (save to the extent that legal costs incurred for the defence of either of them are not ordered by the court to be reimbursed by the Fund); (m) remuneration and out of pocket expenses of the independent members of the investment committee of the Fund, unless the Manager decides otherwise; (n) costs, fees and expenses deemed by the Manager to have been incurred in connection with any change or the need to comply with any change or introduction of any law, regulation or requirement (whether or not having the force of law) of any governmental or regulatory authority; and (o) (where the custodial function is delegated by the Trustee) charges and fees paid to sub-custodians taking into custody any foreign assets of the Fund. 45

47 11.6 Manager s Right to Retire The Manager shall have the power to retire in favour of some other corporation and as necessary under any relevant law upon giving to the Trustee three (3) months notice in writing of its desire so to do, or such other period as the Manager and the Trustee may agree upon, and subject to the fulfilment of the following conditions: (a) (b) (c) the retiring Manager shall appoint such corporation by writing under the seal of the retiring Manager as the management company of the Fund in its stead and assign and transfer to such corporation all its rights and duties as management company of the Fund; such corporation shall enter into such deed or deeds as are referred to in clause of the Deed; and upon the payment to the Trustee of all sums due from the retiring Manager to the Trustee under the Deed at the date of such retirement, the retiring Manager shall be absolved and released from all further obligations under the Deed but without prejudice to the rights of the Trustee or of any Unit Holder or other person in respect of any act or omission on the part of the retiring Manager prior to such retirement and the new management company may and shall thereafter exercise all the powers and enjoy all the rights and shall be subject to all the duties and obligations of the Manager under the Deed as fully as though such new management company had been originally a party to the Deed Manager s Power to Remove or Replace Trustee The Manager shall take all reasonable steps to remove or replace the Trustee as soon as practicable after becoming aware that: (a) the Trustee has ceased to exist; (b) the Trustee has not been validly appointed; (c) the Trustee was not eligible to be appointed or to act as trustee under any relevant law; (d) the Trustee has failed or refused to act as trustee in accordance with the provisions or covenants of the Deed or any relevant law; (e) a receiver has been appointed over the whole or a substantial part of the assets or undertaking of the Trustee and has not ceased to act under that appointment; (f) a petition has been presented for the winding up of the Trustee (other than for the purpose of and followed by a reconstruction, unless during or following such reconstruction the Trustee becomes or is declared insolvent); or (g) the Trustee is under investigation for conduct that contravenes the Trust Companies Act 1949, the Trustee Act 1949, the Companies Act 1965 or any relevant law Trustee s Right to Retire The Trustee may retire upon giving three (3) months notice in writing to the Manager of its desire so to do, or such shorter period as the Manager and the Trustee shall agree, and may by deed appoint in its stead a new trustee approved by the relevant authorities and under any relevant law Power of Trustee to Remove or Replace the Manager Subject to the provisions of any relevant law, the Trustee shall take all reasonable steps to remove or replace the Manager, if the Manager: (a) if the Manager has failed or neglected to carry out its duties to the satisfaction of the Trustee and the Trustee considers that it would be in the interests of Unit Holders for it to do so after the Trustee has 46

48 given notice to it of that opinion and the reasons for that opinion and has considered any representations made by the Manager in respect of that opinion, and after consultation with the relevant authorities and with the approval of the Unit Holders by way of a Special Resolution; (b) unless expressly directed otherwise by the relevant authorities, if the Manager is in breach of any of its obligations or duties under the Deed or the relevant laws, or has ceased to be eligible to be a management company under the relevant laws; or (c) the Manager has gone into liquidation, except for the purpose of amalgamation or reconstruction or some similar purpose, or has had a receiver appointed or has ceased to carry on business Termination of the Fund The Fund may be terminated or wound up upon the occurrences of any of the following events: the Fund has reached its maturity; or a Special Resolution is passed at a Unit Holders meeting to terminate or wind up the Fund upon a meeting of Unit Holders summoned by the Trustee under clauses and 17.2 of the Deed Meetings of Unit Holders Quorum Required for Convening a Unit Holders Meeting The quorum required for a meeting of the Unit Holders shall be five (5) Unit Holders, whether present in person or by proxy, provided always that the quorum for a meeting of the Unit Holders convened for the purpose of voting on a Special Resolution shall be five (5) Unit Holders, whether present in person or by proxy, who must hold in aggregate at least twenty-five per centum (25%) of the Units in circulation at the time of the meeting, and provided further that if the Fund has five (5) or less Unit Holders, the quorum required for a meeting of the Unit Holders of the Fund shall be two (2) Unit Holders, whether present in person or by proxy; if the meeting has been convened for the purpose of voting on a Special Resolution, the Unit Holders present in person or by proxy must hold in aggregate at least twenty-five per centum (25%) of the Units in circulation at the time of the meeting. Unit Holders meeting convened by Unit Holders Unless otherwise required or allowed by the relevant laws, the Manager shall, within twenty-one (21) days of receiving a direction from not less than fifty (50) or one -tenth (1/10) of all the Unit Holders, which is less, summon a meeting of the Unit Holders by: (a) sending by post to each Unit Holder at his last known address or, in the case of jointholders, to the jointholder whose name stands first in the records of the Manager to the jointholder s last known address at least seven (7) days before the date of the proposed meeting a notice of the proposed meeting to all the Unit Holders; (b) publishing at least fourteen (14) days before the date of the proposed meeting an advertisement giving notice of the proposed meeting in a national language newspaper published daily and another newspaper approved by the relevant authorities; and (c) specifying in the notice the place and time of the meeting and the terms of the resolutions to be proposed at the meeting. The Unit Holders may apply to the Manager to summon a meeting for any purpose including, without limitation, for the purpose of: (a) requiring the retirement or removal of the Manager; (b) requiring the retirement or removal of the Trustee; (c) considering the most recent financial statements of the Fund; (d) giving to the Trustee such directions as the meeting thinks proper.; or (e) considering any matter in relation to the Deed, 47

49 provided always that the Manager shall not be obliged to summon such a meeting unless direction has been received from not less than fifty (50) or one -tenth (1/10) of all the Unit Holders, whichever is the lesser number. Unit Holders meeting convened by Manager The Manager may summon a meeting of the Unit Holders for any purpose whatsoever by; (a) giving at least fourteen (14) days written notice of the meeting to Unit Holders; and (b) specifying in the notice the place and time of the meeting and the terms of the resolution to be proposed at the meeting. Unit Holders meeting convened by Trustee Where: (a) the Manager is in liquidation; (b) in the opinion of the Trustee, the Manager has ceased to carry on business; or (c) in the opinion of the Trustee, the Manager has, to the prejudice of Unit Holders, failed to comply with the Deed or contravened any of the provisions of the Act. the Trustee shall summon a Unit Holders meeting in accordance with clause of the Deed. The Trustee may also summon a Unit Holder s meeting for any purpose including, without limitation, for the purpose of: (a) requiring the retirement or removal of the Manager; (b) giving instructions to the Trustee or the Manager if the Trustee considers that the investment management policies of the Manager are not in the interests of Unit Holders; (c) securing the agreement of the Unit Holders to release the Trustee from any liability; (d) deciding on the next course of action after the Trustee has suspended the sale and redemption of Units pursuant to clause of the Deed; and (e) deciding on the reasonableness of the annual management fee charged to the Fund. Unless otherwise required or allowed by the relevant laws, a meeting of the Unit Holders summoned by the Trustee pursuant to clause of the Deed shall be summoned by: (a) sending by post at least twenty-one (21) days before the date of the proposed meeting a notice of the proposed meeting to each of the Unit Holders at the Unit Holder s last known address or, in the case of jointholders, to the jointholder whose name stands first in the records of the Manager at the jointholder s last known address; and (b) publishing at least twenty-one (21) days before the date of the proposed meeting an advertisement giving notice of the meeting in a national language newspaper published daily and another newspaper approved by the relevant authorities. Unless otherwise required or allowed by the relevant laws, a meeting of the Unit Holders summoned by the Trustee pursuant to clause of the Deed shall be summoned by: (a) giving at least fourteen (14) days written notice of the meeting to Unit Holders; and (b) specifying in the notice the place and time of the meeting and the terms of the resolutions to be proposed at the meeting. 48

50 12 RELATED PARTY TRANSACTIONS / CONFLICT OF INTEREST In the course of managing the Fund, TAIM may face conflicts in respect of its duties to the Fund. In such an event, TAIM is obliged to act in the best interests of all its investors and will seek to resolve any conflicts fairly and in accordance with the Deed. TAIM has in place policies and procedures to deal with any of conflict of interest situations. In making an investment transaction for the Fund, the Manager is obliged not to make inappropriate use of its position in managing the Fund to gain, directly or indirectly, any advantage for itself or for any other person or to cause detriment to the interests of Unit Holders. TAIM or any delegate thereof will, as far as possible in their dealings, avoid any conflict of interest situation or, if conflicts arise, will ensure that the Fund is not disadvantaged by the transaction concerned. The compliance department of TAIM will report directly to the board of directors of any conflict that may arise/ has arisen and the board of directors will decide on the next course of action to remedy the situation. Where a director, a member of the investment committee or a delegate of the Manager is aware of a transaction or an arrangement in which a conflict of interest arises involving a related party or an associate, he/she must promptly abstain from any decision-making regarding the transaction. All transactions carried out for or on behalf of the Fund are executed on terms that are best available to the Fund and which are no less favourable than an arm s length transactions between independent parties. None of our directors or substantial shareholders have any direct or indirect interest in other corporations carrying on a similar business as the Manager as at 31 March TRUSTEE S DECLARATION The Trustee is independent of the Manager. The Trustee will carry out transactions on an arm s length basis and on terms which are best available for the Fund, as well as act at all times in the best interest of the Fund s investors. The Trustee also has adequate procedures and processes in place to prevent or control conflicts of interest. ADVISERS The auditor, tax adviser and solicitors have confirmed that they have no conflict of interest or potential conflict of interest with the Manager and the Fund. 49

51 13 TAXATION ADVISOR S LETTER Private and confidential The Board of Directors TA Investment Management Berhad 23rd Floor Menara TA One 22 Jalan P Ramlee Kuala Lumpur Our ref NBG/SAAR/NFO/TT247/X2 Contact Ext / 7437 Date: 25 April 2014 Dear Sirs Re: Taxation of the Fund and Unit Holders This letter has been prepared for inclusion in the Prospectus in connection with the offer of units in the TA Regular Income Fund ( the Fund ). Taxation of the Fund The Fund is treated as a unit trust for Malaysian tax purposes. The taxation of the Fund is therefore governed principally by Sections 61 and 63B of the Malaysian Income Tax Act, 1967 ( the Act ). Subject to certain exemptions, the income of the Fund in respect of investment income derived from or accruing in Malaysia after deducting tax allowable expenses, is liable to Malaysian corporate income tax at the rate of 25%. It was proposed during the 2014 Budget tabled in the Parliament on 25 October 2013 that the tax rate of 25% be reduced by 1% to 24% with effect from YA Investment income derived from sources outside Malaysia and received in Malaysia by a resident unit trust is exempt from Malaysian income tax. However, such income may be subject to tax in the country from which it is derived. Capital gains from the realisation of investments (whether local or foreign) by the Fund will not be subject to income tax. With effect from Year of Assessment ( YA ) 2008, the single-tier company income tax system ( singletier system ) replaced the previous dividend imputation system. Under the previous dividend imputation system, generally taxable Malaysian dividend income received by the Fund would have suffered a tax deduction at source. Such tax deducted would generally be available for set-off either wholly or partly against the tax liability of the Fund under the dividend imputation system. Any excess over the tax liability would generally refundable to the Fund. Under the single-tier system, dividend income (which is paid or credited under the single-tier system) received by the Fund will be exempted, and there will be no tax deducted at source available for the Fund in respect of such dividend income. Saving and transitional provisions apply during the period from 1 January 2008 to 31 December During such transitional period, the Fund may receive dividends which are paid under the dividend imputation system and/or dividends which are paid or credited under the single-tier system. During the transitional period, only dividends (which are paid under the dividend imputation system) paid in the form of cash on ordinary shares (held continuously for 90 days or more, but the 90 days condition does not apply to dividends received from shares in public listed companies) would be entitled to the tax deducted at source. The tax deducted at source will generally be available for set-off either wholly 50

52 or partly against the tax liability of the Fund. Other non-ordinary shares dividends received by the Fund would be exempted from tax. Interest income earned by the Fund from the following are exempt from tax:- any savings certificates issued by the Government of Malaysia; or securities or bonds issued or guaranteed by the Government of Malaysia; or debentures or Islamic Securities, other than convertible loan stock, approved by the Securities Commission; or Bon Simpanan Malaysia issued by the Central Bank of Malaysia; or bonds or securities issued by Pengurusan Danaharta Nasional Berhad; or a bank or financial institution licensed under the Banking and Financial Institutions Act 1989 or Islamic Banking Act 1983; or Islamic securities originating from Malaysia, other than convertible loan stock, issued in any currency other than Ringgit and approved by the Securities Commission or the Labuan Financial Services Authority; or a Sukuk Wakala, other than a convertible loan stock, issued in any currency by Wakala Global Sukuk Berhad will be exempt from tax (with effect from YA 2011). Any income received by the Fund from a Sukuk Issue which has been issued by the Malaysia Global Sukuk Inc will be exempt from tax. Any income received by the Fund from a Sukuk Ijarah, other than convertible loan stock, issued in any currency by 1Malaysia Sukuk Global Berhad will be exempt from tax (with effect from YA 2010). Discount or profit received by the Fund from sale of bonds or securities issued by Pengurusan Danaharta Nasional Berhad or Danaharta Urus Sendirian Berhad is exempt from tax. Discounts earned by the Fund from the following are also exempt from tax:- securities or bonds issued or guaranteed by the Government of Malaysia; or debentures or Islamic Securities, other than convertible loan stock, approved by the Securities Commission; or Bon Simpanan Malaysia issued by the Central Bank of Malaysia. Under the dividend imputation system, deductions in respect of the Fund s expenses such as manager s remuneration, maintenance of a register of unit holders, share registration expenses, secretarial, audit and accounting fees, telephone charges, printing and stationery costs and postage are generally allowed based on a prescribed formula subject to a minimum of 10% and a maximum of 25% of the total of these expenses. Under the single-tier system, expenses incurred by the Fund in relation to dividend income (which is paid or credited under the single-tier system, expenses incurred by the fund in relation to dividend income (which is paid or credited under the single-tier system) are disregarded. Saving and transitional provisions apply during the period from 1 January 2008 to 31 December Taxation of Unit Holders Unit holders are taxed on an amount equivalent to their share of the total taxable income of the Fund, to the extent that this is distributed to them. The income distribution from the Fund may carry with it applicable tax credits proportionate to each unit holder s share of the total taxable income in respect of the tax paid by the Fund. Unit holders will be entitled to utilise the tax credit as a set off against the tax payable by them. Any excess over their tax liability will be refunded to the unit holders. No other withholding tax will be imposed on the income distribution of the Fund. Corporate unit holders (resident or nonresident in Malaysia), will be taxed at the prevailing income tax rate of 25%, on distributions of income from the Fund to the extent of an amount equivalent to their 51

53 share of the total taxable income of the Fund. It was proposed during the 2014 Budget that the tax rate of 25% be reduced by 1% to 24% with effect from YA Resident corporate unit holders whose paid-up capital in the form of ordinary shares does not exceed RM2.5 million will be subject to a tax rate of 20% on chargeable income of up to RM500,000. For chargeable income in excess of RM500,000, the prevailing rate of 25% is still applicable. It was proposed during the 2014 Budget that the tax rate of 25% be reduced by 1% to 24% with effect from YA However, the said tax rate of 20% on chargeable income of up to RM500,000 will not apply if more than 50% of the paid up capital in respect of ordinary shares of that company is directly or indirectly owned by a related company which has a paid up capital exceeding RM2.5 million in respect of ordinary shares, or vice versa, or more than 50% of the paid up capital in respect of ordinary shares of both companies are directly or indirectly owned by another company. Individuals and other non-corporate unit holders who are resident in Malaysia are generally subject to income tax at scale rates. The prevailing income tax scale rates range from 1% to 26%. It was proposed during the 2014 Budget that the tax rate of 26% be reduced by 1% to 25% with effect from YA Individuals and other non-corporate unit holders who are not resident in Malaysia, for tax purposes, are generally subject to Malaysian income tax at the prevailing income tax rate of 26%. It was proposed during the 2014 Budget that the tax rate of 26% be reduced by 1% to 25% with effect from YA Non resident unit holders may also be subject to tax in their respective jurisdictions and depending on the provisions of the relevant tax legislation and any double tax treaties with Malaysia, the Malaysian tax suffered may be creditable in the foreign tax jurisdictions. The distribution of single-tier dividends and other tax exempt income by the Fund will be exempted from tax in the hands of the unit holders in Malaysia. Distribution of foreign income will also be exempted from tax in the hands of the unit holders. Units split by the Fund will be exempted from tax in Malaysia in the hands of the unit holders. Any gains realised by the unit holders (other than financial institutions, insurance companies and those dealing in securities) from the transfers or redemptions of the units are generally treated as capital gains which are not subject to income tax in Malaysia. However, certain unit holders may be subject to income tax in Malaysia on such gains, due to specific circumstances of the unit holders. The tax position is based on the Malaysian tax laws and provisions as they stand as at present. All prospective investors should not treat the contents of this letter as advice relating to taxation matters and are advised to consult their own professional advisers concerning their respective investments. Yours faithfully Neoh Beng Guan Executive Director 52

54 14 ADDITIONAL INFORMATION 14.1 Customer Service When you invest in the Fund, the Manager will undertake to send you the following: Written confirmation on all transactions and income distributions (if any); Unaudited interim report for the half year of the Fund s financial year; and Annual audited report for the Fund s financial year-end. In addition, investments can be monitored easily as the Fund s prices are published daily in major newspapers. If you have any questions about the information in this Prospectus or would like to know more about investing in any investment funds managed by the Manager, please contact our authorised distributors or our Customer Service Officers on toll free between 9.00 a.m. and 6.00 p.m., from Monday to Friday (except public holidays). Investors would also be able to obtain the latest information on the funds managed by us as well market updates on our website, Where Units Can Be Purchased or Redeemed In relation to the information on where Units can be purchased or redeemed, please refer to the addresses and contact numbers of the head office and branches of TAIM as disclosed in the Corporate Directory section of this Prospectus. TA Investment@A-ClickPlus! is our online service that assists you in the administering and tracking of your unit trust investments more effectively and efficiently at our website, There is no registration fee. For security and compliance purposes, corporate investors who wish to register with the facilities are required to complete a hardcopy user application form that will be made available online Anti-Money Laundering Policy A customer acceptance procedure, which includes the identification and verification of identity of new customers, is conducted prior to entering into the relationship by risk-based approach. Information, documents and evidences will be obtained depending on the types of applicant i.e. individual or corporate clients, etc. The classification of customer is based on Customer Due Diligence (CDD) risk matrix whereby customers are classified into one of the three risk level according to their background and investment threshold. The normal risk customers are required to undergo a standard CDD procedure while the increased risk customers are required to undergo an enhanced CDD procedure. Customers who are categorized as unacceptable risk level will not be accepted. Any suspicious transactions for anti-money laundering and anti-terrorist financing will be reported to the compliance officer within the Manager as well as to the local regulators. All employees involved with customers and in processing transactions are required to adhere to these policies and procedures Material Contracts There are no other material contracts (including contracts not reduced in writing), not being contracts entered in the ordinary course of business which have been entered into by the Manager within two (2) years preceding the date of this Prospectus. 53

55 15 CONSENT The Trustee, auditor, tax adviser, solicitors and External Investment Manager have given their written consents to include their names and/or letter in this Prospectus in the form and context in which they appear and have not subsequently withdrawn their written consents to the inclusion of their names and/or letter. 16 DOCUMENTS AVAILABLE FOR INSPECTION During the validity of this Prospectus, i.e. twelve ( 12) months from the date of this Prospectus, the following documents are available for inspection at our offices and/or the office of the Trustee (wh ere applicable) without charge: the Deed and supplemental deed (if any); any material contract or document referred to in this Prospectus; the latest annual and interim reports of the Fund; all reports, letters or other documents, valuations and statements by any expert, any part of which is reproduced or referred to in this Prospectus; the audited financial statements of the Fund and the Manager for the current financial year (where applicable) and the last three financial years from the date of establishment/incorporation, if less than three years, preceding the date of Prospectus; and all consents given by experts or persons whose statement appears in this Prospectus. 54

56 ACCOUNT OPENING FORM In accordance with the requirements of the Capital Markets and Services Act 2007, this Form should not be circulated unless accompanied by the Prospectus(es)/ Information Memorandum(s) and Supplemental(s) (if any). Investors are required to read and understand the contents in the Prospectus(es)/ Information Memorandum(s) and Supplemental(s) (if any) of the Funds before completing this Form. Complete in BLOCK LETTERS, preferably in BLACK INK and tick ( ) where applicable. Acc. No Individual Non-Individual 1. INDIVIDUAL FIRST APPLICANT Full Name (as in NRIC/ Passport) NRIC/ Passport/ Others Date of Birth (DD / MM / YYYY) Gender Marital Status Race Male Female Single Married Others Malay Chinese Indian Others Nationality Religion Occupation Malaysia, Bumiputra Islam Christian Student Clerical Executive Malaysian, Non Bumiputra Buddhist Hindu Managerial Sr Management Director Non Malaysian (Country/Citizenship) Others Businessman Housewife Professional (Dr/Lawyers/Engineer) Pensioner Others Annual Income Below RM36,000 RM36,001 to RM72,000 RM72,001 to RM100,000 RM100,001 to RM299,999 RM300,000 and above Source of Income Business Investment Employment Savings Inheritance Others Mother s Maiden Name: EPF Membership No: 2. INDIVIDUAL JOINT APPLICANT Full Name (as in NRIC/ Passport) NRIC / Passport / Others Date of Birth (DD / MM / YYYY) Gender Relationship with First Applicant: Male Female Occupation : Telephone No / Mobile No : Annual Income Below RM36,000 RM36,001 to RM72,000 RM72,001 to RM100,000 RM100,001 to RM299,,999 RM300,000 and above Source of Income Business Investment Employment Savings Inheritance Others 3. NON INDIVIDUAL COMPANY / INSTITUTIONN Name of Company / Institution (as per Certificate of Incorporation) Registration No: Nature of Business: Status Date of Incorporation DD / MM / YYYY Source of Income If have share in business, state percentage of shareholdings/ownership: Incorporated in Malaysia, Bumiputra Controlled Incorporated in Malaysia, Non-Bumiputra Controlled Incorporated outside Malaysia Others Contact Person 1 (Name): Disposal of non-core business / assets / investments Fund raising exercise such as rights issue Cash in hand / surplus fund / working capital Others Designation & Department: Telephone / Mobile No: Contact Person 2 (Name): Designation & Department: Telephone / Mobile No:

57 4. ADDRESS & CONTACT (FIRST APPLICANT / COMPANY / INSTITUTION) Residential Address Postcode: Town: State: Country: Contact No: Mobile No: Name of Employer / Firm / Business: Business Details Public Private Others Business Address Postcode: Town: State: Country: Designation: Office No: Fax No: Company If you are using P.O. Box as your mailing address, please indicate reason for using the address: 5. DECLARATION(S) & SIGNATURE (S) I/ We have received, read and understood the latest contents of the relevant Prospectus(es)/ Information Memorandum(s) and Supplemental(s) (if any), and agree to abide by the Notes and Conditions as specified below. I/ We wish to invest in the Fund(s) mentioned above and agree to be bound by the provisions of the Deed(s). I/ We declare that the above particulars are true and complete and that no information was withheld that may influence the acceptance of this application. I/ We declare that this application is not funded by gains from any unlawful activities. I am/ We are over 18 years old on this application date. Signature is not required for joint applicant who is below 18 years old. In the event there is a change in the Authority To Operate Account when the minor turns 18 years old, a fresh instruction has to be given by the First Applicant. ACCOUNT OPERATING INSTRUCTION: For Joint Application, please tick ( ) for future transactions. If no instruction given, First Applicant is recognized as the authorized signatory. First Applicant To Sign Either One To Sign Both To Sign First Applicant / Authorised Signatory 1 Date Joint Applicant / Authorised Signatory 2 (if any) Date Company Seal or Stamp FOR DISTRIBUTOR S USE ONLY Consultant Branch FOR OFFICE USE ONLY Remarks Direct Approved By/ Date IUTA Received By/Date Processed By/ Date: Verified By/ Date

58 IMPORTANT NOTES AND CONDITIONS Please read the following before completing this Form. By applying for units of the Funds managed by TA Investment Management Berhad ( TAIM or the Manager ), you are bound by the terms stated below. 1. INSTRUCTIONS All instructions given or purported to be given via any written or facsimile transmission by the applicant, as named in this Form or otherwise in writing are binding on the applicant. Duly completed forms or instructions from the applicant are deemed irrevocable. 2. INDIVIDUAL APPLICANT a. First applicant Complete sections 1, 4 & 5. A photocopy of the applicant s NRIC, Passport or other form of identification document, must be attached. The applicant must be 18 years old and above on the last birthday. b. Joint applicant The applicant may nominate a joint applicant in which case, a photocopy of the NRIC must also be provided. The joint applicant is also required to sign this form. Complete sections 2 & 5. A joint applicant who is under 18 years of age need not sign this form. Instead, a photocopy of the NRIC or Birth Certificate is required. In the event of the death of a joint applicant, the survivor will be the only person recognised by the Manager as having any title to or interest in the units. Units registered in joint names with a minor can be redeemed or transferred by the parent/ guardian. On or after the minor s 18 th birthday, the parent/ guardian may request that the units be transferred to the minor s name. In the event of the death of the parent/ guardian, the Executor or Administrator of the deceased s estate will be the only person recognised by the Manager as having title to such units. c. Account operating instruction The operating instruction empowers the authorised signatory(ies) to operate the account which includes effecting redemption, transfer, switching, change of address, distribution instruction and any other requests. All redemption proceeds will be made payable only to the first applicant, unless there is a request by the first applicant that the proceeds be made payable to the joint applicant. Proceeds cannot be paid to any third party s account. 3. NON-INDIVIDUAL (COMPANY / INSTITUTION) a. This form must be submitted together with a certified true copy of:- The Certificate of Incorporation; The Memorandum and Articles of Association; Form 24 (List of Shareholders); Form 44; Form 49 (List of Directors); The latest Audited Financial Statement Board Resolution to authorize the investment; A list of authorized signatories; Their specimen signatures, together with; The payment. b. The Company Seal or Stamp, if applicable, must be affixed on this form c. Operating instruction The operating instruction empowers the authorized signatory(ies) to operate the account which includes effecting redemption, transfer, switching, change of address, distribution instruction and any other requests. 4. RIGHT OF THE MANAGER The Manager shall be entitled to reject any application for units at its sole discretion without having to furnish any reasons for its rejection to investors. 5. GENERAL a. All investors will be issued with a Statement of Account together with the Fund s interim and annual report. b. For the wholesale fund(s) investors will be issued with a Monthly Statement of Account, quarterly and annual reports. c. In the case of joint applicants, distribution and tax vouchers will be issued in the name of the first applicant. d. TAIM reserves the right to reassign another qualified person to replace applicant s consultant at any time it deems fit without having to give any reason whatsoever. e. Funds that are bought from our authorised distribution channel, the completed Account Opening Form must be submitted to the distribution channel only. f. All investors of any particular Fund are eligible to use the Web Facility TA Investment@A-Click Plus. This web facility will assist investors to administer and track their Unit Trust investments more effectively and efficiently. Log on to to sign up. 6. CONTACT DETAILS a. The onus is on the applicant to notify us of any change in address and contact number immediately to ensure continuity in the receipt of mails from the Manager. b. Transaction advice slips, statements of account, cheques and other documents shall be sent to the applicant s correspondence address as detailed in the Form, at the risk of the applicant. In the event of undelivered mails, TAIM reserves the right to send future mails to the permanent address as detailed in the Form until further notice from the applicant. c. All details shown in the transaction advice slips or statements of account are deemed to be correct unless TAIM is notified in writing of any discrepancy within 14 days of issue or 30 days of issue respectively. 7. INDEMNITY a. The applicant shall fully indemnify TAIM and any of their consultants against any actions, proceedings, claims, losses, damages, costs and expenses which may be brought against, suffered or incurred by any or all of them arising either directly or indirectly out of or in connection with TAIM accepting, relying on or failing to act on any instructions given by or on behalf of the applicant unless due to the willful default or negligence of TAIM. b. The applicant acknowledges and accepts that TAIM has absolute discretion to rely on facsimile confirmation from the applicant and undertakes to indemnify and hold harmless TAIM, its employees and agents against all costs, expenses, losses, damages, claims and demands arising out of relying on the applicant s confirmation. Updated v

59 INVESTMENT FORM In accordance with the requirements of the Capital Markets and Services Act 2007, this Form should not be circulated unless accompanied by the Prospectus(es)/ Information Memorandum(s) and Supplemental(s) (if any). Investors are required to read and understand the contents in the Prospectus(es)/ Information Memorandum(s) and Supplemental(s) (if any) of the Funds before completing this Form. Complete in BLOCK LETTERS, preferably in BLACK INK and tick ( ) where applicable. Acc. No Initial Additional 1. DETAILS First Applicant s Full Name (as in NRIC/ Passport) Name of Company/ Institution First Applicant s NRIC/ Others Registration No. Contact No. Joint Applicant s Full Name (as in NRIC/ Passport) Joint Applicant s NRIC/ Others Contact No. Source of this Investment Business Investment Employment Savings Inheritance Others 2. PAYMENT MODE (PLEASE INDICATE ONE ONLY) Cash (A Maximum of RM1,000 per application) EPF Investment Scheme No Deposit Cash (Please enclose original cash deposit/ bank-in slip) Bank Draft No Online / Telegraphic Transfer (Please enclose online/ telegraphic transfer statement) Cheque No. 3. INITIAL INVESTMENT Fund Name Distribution Instruction RM 1. Reinvest Payout 2. Reinvest Payout 3. Reinvest Payout 4. Reinvest Payout 5. Reinvest Payout Total 4. ADDITIONAL INVESTMENT Fund Name Account No. RM Total

60 5. DECLARATION (S) & SIGNATURE (S) I/ We have received, read and understood the latest contents of the relevant Prospectus(es)/ Information Memorandum(s) and Supplemental(s) (if any), and agree to abide by the Notes and Conditions as specified overleaf. I/ We wish to invest in the Fund(s) mentioned above and agree to be bound by the provisions of the Deed(s). I/ We declare that the above particulars are true and complete and that no information was withheld that may influence the acceptance of this application. I/ We declare that this application is not funded by gains from any unlawful activities. I am/ We are aware of the fees and charges that I/we will incur directly or indirectly when investing in the Fund(s). Cancellation of any request is not allowed once TA Investment Management Berhad receives this form. I/We have read and understood the contents of the Unt Trust Financing Risk Disclosure Statement as specified overleaf. Please tick ( Signature(s) given must be identical to the Account Opening Form. ) if your applying for loan financing. First Applicant / Authorised Signatory 1 Date Joint Applicant / Authorised Signatory 2 (if any) Date Company Seal or Stamp FOR DISTRIBUTOR S USE ONLY Consultant Branch FOR OFFICE USE ONLY Remarks Approved By/ Date Direct IUTA Received By/Date Processed By/ Date: Verified By/ Date IMPORTANT NOTES AND CONDITIONS Please read the following before completing this Form. By applying for units of the Funds managed by TA Investment Management Berhad ( TAIM or the Manager ), you are bound by the terms stated below. 1. BASIS OF SALE Units in the Funds are sold only on the basis of information contained in the Prospectus(es)/ Information Memorandum(s) and Supplemental(s) (if any) and Deed(s). 2. INSTRUCTIONS All instructions given or purported to be given via any written or facsimile transmission by the applicant, as named in this Form or otherwise in writing are binding on the applicant. Duly completed forms or instructions from the applicant are deemed irrevocable. 3. COMPLETING THIS INVESTMENT FORM AND REQUIRED DOCUMENTS a. Initial Investment: Complete sections 1, 2, 3 & 5 and attach with a completed and signed:- FIMM Pre-Investment Form (for individual only); Account Opening Form (required if you are a new applicant and/ or adding/ changing joint applicant); A clear photocopy of NRIC (for individual only); Board Resolution authorising the investment (for non-individual only); Payment. b. Additional Investment: Complete sections 1, 2, 4 & 5 and attach with a completed and signed:- Board Resolution authorising the investment, if applicable (for non-individual only); Payment. c. Initial Investment EPF: Complete sections 1, 2, 3 & 5 and attach with a completed and signed:- FIMM Pre-Investment Form (for individual only); Account Opening Form (required if you are a new applicant; KWSP 9N (AHL) Form; A clear photocopy of NRIC. d. Additional Investment EPF: Complete sections 1, 2, 4 & 5 and attach with a completed and signed:- KWSP 9N (AHL) Form; A clear photocopy of NRIC. 4. PAYMENT a. By cash Cash may be accepted when the purchase of units is done at TAIM Office subject to a maximum of RM1,000 per application. Investors are advised not to make payment in cash when purchasing units of the Fund via any IUTAs/ Unit Trust Consultant. b. By cheque/ bank drafts The cheque/ bank drafts should be crossed and made payable to TA INVESTMENT MANAGEMENT BERHAD. Please write the applicant s full name, NRIC/Passport number and Fund Name at the back of the cheque and attach it to this Form. c. By deposit cash/ cheque or via online/telegraphic transfer Alternatively, the applicant may deposit cash/ cheque or make payment via online or telegraphic transfer into our MAYBANK Account according to the Fund s account number as follows:- All funds except where indicated otherwise TA CashPLUS Fund TA Islamic CashPLUS Fund Third Party Fund The original cash deposit/ bank-in slip or online transfer statement must be attached to this Form. It must clearly show the applicant s full name, NRIC/ Passport number and Fund Name. d. The Manager will not accept any investment application which is incomplete or not accompanied by the required documents although payment has been credited into TAIM s account. 4. COOLING-OFF PERIOD Investors have the right to request for a cancellation of their investment within 6 business days or any other period as mentioned in the Prospectus(es)/ Information Memorandum(s) and Supplemental(s) (if any) from the day of purchase. For details, please refer relevant Prospectus(es)/ Information Memorandum(s) and Supplemental(s) (if any). 5. DISTRIBUTION INSTRUCTION a. The applicant may choose to receive any distribution declared by either reinvesting the distribution amount for additional units in the Fund or by cheque sent to the applicant at the last correspondence address provided to us; b. Distributions will automatically be re-invested for additional units in the Fund if: No distribution choice is made on the Investment Form; The distribution cheque is returned as unclaimed through the post; The distribution cheque is uncashed after six (6) months from date of issue; The distribution amount is less than RM50.00 or such other amount as determined by the Manager from time to time; The investment is made through EPF investment scheme; and The investment in third party funds. c. Any change in distribution instruction must be in writing. If this is done in the last 14 days prior to the distribution declaration date of the Fund, the change will only take effect from the next distribution point, if any.

61 6. RIGHT OF THE MANAGER TAIM reserves the right to reject any investment request that is unclear, incomplete, and/ or not accompanied by the required documents. 7. SPECIFIC NOTES & CONDITIONS RELATING TO THE DISTRIBUTION OF THIRD PARTY FUNDS a. Please read the following before completing this form. By applying to invest in units of the other unit trust management companies Funds ( Funds ) distributed by TA Investment Management Berhad ( TAIM ) as an Institutional Unit Trust Adviser ( IUTA ), you are bound by the terms stated below. b. TRANSACTIONS The applicant hereby agrees that TAIM shall be a bare Custodian and not a trustee to hold and act for and on behalf of the applicant in relation to any units of such Funds as maybe invested in from time to time by the applicant and TAIM shall not recognise any trust or equity in respect of the units registered in the name of TAIM at the applicant s request. The applicant hereby appoints TAIM as nominee to apply and undertake any authorised transactions on behalf of the applicant in relation to the Funds. TAIM will hold the purchased units as registered unit holder for and/ or behalf of the applicant and is authorised to request payment of and receive all dividends and other payments or distributions in relation to the units. Transactions for the units may be aggregated and consolidated either daily or from time to time by TAIM with such transactions as placed or sent by TAIM to the relevant manager of the Fund. All transactions with respect to the units effected by TAIM for the applicant shall be according to the terms of the relevant Prospectus(es)/ Information Memorandum(s) and Supplemental(s) (if any), deed of the Fund(s) and applicable laws. 10. MONEY LAUNDERING STATEMENTS The applicant hereby warrants that:- a. The applicant is the underlying principal of the Account (where applicable) b. No person other than the applicant has or will have any interest in the Account (where applicable); and c. All monies as may be paid to TAIM from time to time shall come from a legitimate (and not illegal) source d. The applicant agrees to provide all such information and documents as may be necessary to verify the applicant s identity and do all such acts and things as may be necessary to enable TAIM to comply with all applicable anti-money laundering and counter financing of terrorism (AML/ CFT), and know-your-customer laws, rules and regulations (whether in Malaysia or elsewhere). The applicant agrees that TAIM shall not be liable or responsible in anyway whatsoever and shall be held harmless against any loss arising as a result of or in connection with any delay or failure to process any application or transaction if such information or documents requested by TAIM have not been promptly provided by the applicant to TAIM. e. TAIM reserves the right to terminate the relationship if any documents requested pursuant to the AML/ CFT requirements are not received within 14 business days. In the event of termination, units will be redeemed at the closing NAV price on the 15th business day. Updated v GENERAL a. This Form must be received by us before 4.00pm and before 2.00pm (for investment in Third Party Funds) and if accepted, will be transacted at the NAV as determined at the end of the Business Day on which this application is received except for EPF Investment which will be transacted at the NAV as determined at the end of the Business Day on which the EPF disburse the payment to the Manager. b. For TA CashPLUS Fund and TA Islamic CashPLUS Fund, the transaction of units will be based on NAV at the end of the next business day after the cheque is cleared. For Telegraphic Transfer, units will be based on NAV at the end of next business day. c. No certificates will be issued. Once your application is accepted, you will receive a Transaction Advice Slip from the Manager indicating the number of units allotted and the confirmed NAV within 14 days. d. All investors will be issued with a statement of account together with the Fund s interim and annual report. e. Applicant utilizing their EPF savings are not allowed to invest in Funds that are not EPF approved. f. All investors of any particular Fund are eligible to use the Web Facility TA Investment@A-Click Plus. This web facility will assist investors to administer and track their Unit Trust investments more effectively and efficiently. Log on to to sign up. 9. UNIT TRUST LOAN FINANCING RISK DISCLOSURE STATEMENT Investing in a unit trust scheme with borrowed money is more risky than investing with your own savings. You should assess if loan financing is suitable for you in light of your objectives, attitude to risk and financial circumstances. You should be aware of the risks, which would include the following:- a. The higher the margin of financing (that is, the amount of money you borrow for every ringgit of your own money which you put in as deposit or down payment), the greater the potential for losses as well as gains. b. You should assess whether you have the ability to service the repayments on the proposed loan. If your loan is a variable rate loan, and if interest rates rise, your total repayment amount will be increased. c. If unit prices fall beyond a certain level, you may be asked to provide additional acceptable collateral or pay additional amounts on top of your normal installments. If you fail to comply within the time prescribed, your units may be sold to settle your loan. d. Returns on unit trusts are not guaranteed and may not be earned evenly over time. This means that there may be some years where returns are high and other years where losses are experienced. Whether you eventually realise a gain or loss may be affected by the timing of the sale of your units. The value of units may fall just when you want your money back even though the investment may have done well in the past. This brief statement cannot disclose all the risks and other aspects of loan financing. You should therefore study the terms and conditions carefully before you decide to take a loan. If you are in doubt about any aspect of this risk disclosure statement or the terms of the loan financing, you should consult the institution offering the loan.

62 PRE-INVESTMENT FORM Do You Know? ATTENTION UNIT TRUST INVESTORS IMPORTANT! Your Unit Trust Consultant (UTC) is required to explain all of the following to you Signing this form does not preclude you from taking action against relevant party/parties under any circumstances. 1) You can buy unit trusts either through a Unit Trust Consultant (UTC), Institutional Unit Trust Advisers (IUTA), Corporate Unit Trust Advisers (CUTA) or directly from Unit Trust Management Company (UTMC) or online, but each has different sales charge and level of service. Choose the one that best suits your needs. 2) If you redeem your units in a unit trust fund and then purchase units in another, you will probably have to pay a sales charge. However, if you switch from one fund to another managed by the same UTMC, it is likely that you may not have to pay any sales charge. Ask about switching before you redeem. 3) Different types of unit trust funds carry different levels of risk. Some are higher in risk than others. Ask about the risks before investing in a fund. Make sure you know what your fund is investing in. 4) If you are a first time investor in a UTMC, you may be eligible for cooling-off rights, whereby you can change your mind within six (6) business days after investing and withdraw your unit trust investment. Ask about your eligibility for cooling-off. Yes( )/ No(X) 5) Your UTC may represent a company that uses a nominee system and your rights as a unit holder may be limited if you invest in unit trust funds through it. If his or her company uses a nominee system, ask if your rights as a unit holder will be limited in any way. You Should Also Know a) Only registered UTCs are allowed to sell unit trust funds. Your UTC should show you a valid authorisation card confirming that he/she is registered with the Federation of Investment Managers Malaysia (FIMM). b) A unit trust fund may only be offered to the public if it is approved by the Securities Commission Malaysia (SC). Go to for a list of unit trust funds currently available in the market or call for assistance. c) When you buy into a unit trust fund, you should be given the latest copy of prospectus for free. Read the prospectus carefully; understand its contents before investing. d) You may have to pay direct and indirect fees and possibly other charges too. Ask about applicable fees. e) If you have concerns or complaints about any unit trust fund, you can contact FIMM at ( or the Investor Affairs & Complaints Department of the SC at f) You should not make payment in cash to the UTC or issue a cheque in the name of UTC. Investor s Confirmation I/We confirm that the UTC has explained all the points overleaf to me/us. 1) Applicant Signature : Name : NRIC/Identification Number/Passport No.: Date : 2) Joint Applicant (If applicable) Signature : Name : NRIC/Identification Number/Passport No.: Date : Unit Trust Consultant s Declaration I declare that I have explained the points overleaf and the investor(s) understand(s) them. Signature : Name : NRIC/Identification Number/Passport No.: Registered as UTC of UTMC/IUTA/CUTA^: Date : ^Delete where not applicable.

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