MANULIFE INVESTMENT INDIA EQUITY FUND

Transcription

1 Manulife Asset Management Services Berhad ( U) MANULIFE INVESTMENT INDIA EQUITY FUND RESPONSIBILITY STATEMENT This Product Highlights Sheet has been reviewed and approved by the directors of Manulife Asset Management Services 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 the Product Highlights Sheet false or misleading. STATEMENT OF DISCLAIMER The Securities Commission Malaysia has authorized the issuance of Manulife Investment India Equity Fund and a copy of this Product Highlights Sheet has been lodged with the Securities Commission Malaysia. The authorization of the Manulife Investment India Equity Fund and lodgement of this Product Highlights Sheet, should not be taken to indicate that the Securities Commission Malaysia recommends the Manulife Investment India Equity Fund or assumes responsibility for the correctness of any statement made or opinion or report expressed in this Product Highlights Sheet. The Securities Commission Malaysia is not liable for any non-disclosure on the part of the Manulife Asset Management Services Berhad responsible for the Manulife Investment India Equity Fund and takes no responsibility for the contents of this Product Highlights Sheet. The Securities Commission Malaysia makes no representation on the accuracy or completeness of this Product Highlights Sheet, and expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of its contents.

2 This Product Highlights Sheet only highlights the key features and risks of the Manulife Investment India Equity Fund ( the Fund ). Investors are advised to request, read and understand the Prospectus of the Fund before deciding to invest. MANULIFE INVESMENT INDIA EQUITY FUND PRODUCT HIGHLIGHTS SHEET BRIEF INFORMATION ON THE PRODUCT 1. What is this product about? Fund type Fund category : Growth : Feeder Investment objective : The Fund invests in the MGF-INDF which aims to achieve long term capital growth through equities and equity-related investments of companies covering different sectors of the Indian economy and which are listed on stock exchanges in India or on any stock exchange. The remaining assets of the MGF-INDF may include convertible bonds, bonds, deposits and other investments. Performance benchmark : MSCI India 10/40 Index* Commencement date : 7 January 2010 Initial offer price : RM0.50 per Unit Distribution policy : The Fund intends to distribute income, if any, on an annual basis Capital guaranteed : No * Note: Risk profile of the Fund is not the same as risk profile of the benchmark. PRODUCT SUITABILITY 2. Who is this product suitable for? The Fund is suitable for you who: seek an investment in the India market; and are willing to accept high risk in their investments in order to achieve long term capital growth. Please note that long term refers to a period of 5 years and above. MANULIFE INVESTMENT INDIA EQUITY FUND page 2

3 KEY PRODUCT FEATURES 3. What am I investing in? You will be investing in a feeder fund that invests principally in MGF-INDF managed by MAMHK. MGF-INDF is a collective investment scheme constituted in Luxembourg. MGF-INDF was established on 30 November This Fund is a feeder fund that invests at least 95% of its NAV in MGF-INDF. The risk management strategies and techniques employed will be at the MGF-INDF level by MAMHK with its investment strategy that involves diversification among its asset allocation to invest in India market through Foreign Institutional Investor ( FII ) that is regulated by The Securities and Exchange Board of India Foreign Institutional Investors Regulation Although the Fund is passively managed, the investments of the Fund will be rebalanced from time to time to meet redemptions and to enable the proper and efficient management of the Fund. Notwithstanding the above, the Manager may, in consultation with the Trustee and with the Unit Holder s approval, replace MGF-INDF with another fund of a similar objective if, in the Manager s opinion, MGF-INDF no longer meets this Fund s investment objective, or when acting in the interest of the Unit Holders. In all circumstances the MIIEF will continue investing at least 95% of its NAV in MGF-INDF as such the performance of MGF-INDF will reflect on the MIIEF s performance. 4. Who am I investing with? You will be investing with us, Manulife Asset Management Services Berhad. The following are the key parties related to the Fund: Trustee : HSBC (Malaysia) Trustee Berhad Auditors : PricewaterhouseCoopers Tax adviser : Deloitte Kassim Chan Taxation Services Sdn Bhd 5. What are the possible outcomes of my investment? Investment involves risk. The value of the Fund and its distribution (if any) may rise or fall. These risk factors (see the following section for the key risks of the Fund), among others, may cause you to lose some or all of your investments. MANULIFE INVESTMENT INDIA EQUITY FUND page 3

4 KEY RISKS 6. What are the key risks associated with this product? The following table describes the key risks you are exposed to when investing in the Fund: Risks Fund manager risk Currency risk Country risk Liquidity risk Description Since the Funds invest into collective investment schemes managed by other foreign fund houses ( the Target Fund ), the Manager has no control over the respective foreign fund houses investment techniques and knowledge, operational controls and management. Where a percentage of the value of a Fund is invested in foreign currency or assets denominated in a foreign currency, the Fund may be exposed to currency fluctuation risks as well as foreign exchange regulatory changes. The value of the assets of a Fund may also be affected by the political and economic conditions of the country in which the investments are made. This refers to the ease in which securities can be sold at or near its fair value depending on the volume traded on the market. IT IS IMPORTANT TO NOTE THAT THE ABOVE LIST OF RISKS MAY NOT BE EXHAUSTIVE. WHILE EVERY CARE WILL BE TAKEN BY THE MANAGER TO MITIGATE SUCH RISKS, INVESTORS ARE ADVISED THAT IT IS NOT ALWAYS POSSIBLE TO PROTECT INVESTMENTS AGAINST ALL RISKS. FURTHER, DIFFERENT ASSET CLASSES GENERALLY EXHIBIT DIFFERENT LEVELS OF RISK. INVESTORS ARE ADVISED TO CONSULT THEIR PROFESSIONAL ADVISER. PLEASE REFER TO THE PROSPECTUS UNDER RISKS FACTOR FOR FURTHER DETAILS ON RISKS. FEES AND CHARGES 7. What are the fees and charges involved? The following table describes the charges and fees that you may directly incur for investing in the Fund: Sales Charge IUTA Up to 5.50% of the NAV per Unit (payable when you UTC Up to 6.00% of the NAV per Unit place your purchase) The Manager Up to 5.50% of the NAV per Unit The Sales Charge is negotiable. Redemption Charge (payable when you place your redemption request) We do not intend to impose any Redemption Charge. MANULIFE INVESTMENT INDIA EQUITY FUND page 4

5 FEES AND CHARGES 7. What are the fees and charges involved? (cont d) Transfer fee (payable when you transfer your Units to another person or organisation) Switching fee (payable when you switch your Units to other funds managed by us) Other Charges RM5.00 for each transfer request. We do not intend to impose any switching fee, however, you are subject to the conditions on switching as set out in the Prospectus. There are no other charges (except charges levied by banks on remittance of money (payable directly by you when purchasing or redeeming Units of the Fund. The following table describes the fees and expenses that you may indirectly incur for investing in the Fund: Annual Management Fee Annual Trustee Fee Other Expenses 1.80% per annum of the NAV of the Fund calculated and accrued on a daily basis. 0.08% per annum of the NAV of the Fund, subject to a minimum fee of RM18, per annum (excluding foreign custodian fees and charges). This fee is calculated and accrued daily and payable monthly by the Fund to the Trustee. audit fees; commission/fees paid to brokers; foreign custodian fees and charges; 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; independent investment committee members fee; cost for modification of Deed save where such modification is for the benefit of the Manager and/or the Trustee; cost of convening meetings for Unit Holders other than those incurred by or for the benefit of the Manager and/or the Trustee; and any other expenses allowed under the Deed. MANULIFE INVESTMENT INDIA EQUITY FUND page 5

6 VALUATION AND EXITING FROM INVESTMENT 8. How often are valuations available? The Fund must be valued at least once every Business Day. The Guidelines also requires a valuation of the Fund to be carried out in a fair and accurate manner. The Fund adopts a forward pricing basis which means that prices of Units will be calculated based on the NAV of the Fund at a valuation point in the future, i.e. the next valuation point. The valuation point of the Fund is at the end of each Business Day. Accordingly, if applications for Units or requests for redemption are received before the cutoff time of 3.00 p.m. on a Business Day, say, Tuesday, the price of the Units in respect of those applications and requests will be calculated based on the valuation of the Units done on Tuesday. Accordingly, applications for Units or requests for redemption received after the cut-off time of 3.00 p.m. on the Business Day of, for example, Tuesday, the applicable prices for those applications and requests will be the prices calculated on Wednesday (assuming Wednesday is a Business Day) (T + 1). However, as some of the investments of the Fund are in foreign markets, which have a different time zone from that of Malaysia, the valuation of the Fund for a Business Day will be conducted at or before 5.00 p.m. on the following day when the Manager is open for business, and when the closing prices of the Fund s investments for that Business Day would be available. The daily price of the Fund for a particular Business Day will not be published in the newspaper on the next day but will instead be published the next following day (i.e. the price will be two (2) days old). The NAV per Unit of the Funds will be quoted daily in at least one (1) national Bahasa Malaysia newspaper and one (1) national English to enable Unit Holders to monitor their investments. Alternatively, Unit Holders may contact the Manager directly during business hours to obtain the latest price of the Fund. Note: Valuation point is the particular point in time on a Business Day, as the Manager may decide, at which the NAV of the Fund is calculated. 9. How can I exit from this investment and what are the risks and costs involved? You may make a request for redemption on any Business Day. Units will be redeemed at the NAV per Unit of the Fund as at the next valuation point. Take for example, the price of Units for redemption request received before 3.00 p.m. (cut off time) will be calculated based on the valuation of the Units on the same Business Day. Whereas, a redemption request received after 3.00 p.m. (cut off time), the request will be processed based on the NAV per Unit on the following Business Day. The minimum redemption for the Fund is 500 units. The Manager will not process the redemption request if the redemption request leaves you with less than 500 Units (minimum holdings). In this instance, you will be required to make an application for the Manager to liquidate all your holdings in the Fund. MANULIFE INVESTMENT INDIA EQUITY FUND page 6

7 9. How can I exit from this investment and what are the risks and costs involved? (cont d) Redemption proceeds will be paid within 10 days from the date we receive your redemption request. Please also note that there will be no Redemption Charge imposed. CONTACT INFORMATION 10. Who should I contact for further information or to lodge a complaint? For further information or internal dispute resolution, you may contact us at: (a) via phone to : (b) via to : my_utservice@manulife.com (c) via letter to : Manulife Asset Management Services Berhad 13 th floor, Menara Manulife 6, Jalan Gelenggang Damansara Heights Kuala Lumpur If you are dissatisfied with the outcome of the internal dispute resolution process, please refer your dispute to the Securities Industries Dispute Resolution Corporation (SIDREC):- (a) via phone to : (b) via fax to : (c) via to (d) via letter to : info@sidrec.com.my : Securities Industry Dispute Resolution Center (SIDREC) Unit A-9-1, Level 9, Tower A Menara UOA Bangsar No. 5, Jalan Bangsar Utama Kuala Lumpur You can also direct your complaint to Securities Commission Malaysia even if you have initiated a dispute resolution process with SIDREC. To make a complaint, please contact their Investor Affairs & Complaints Department: (a) via phone to the Aduan Hotline at : (b) via fax to : (c) via to : aduan@seccom.com.my (d) via online complaint form available at: (e) via letter to : Investor Affairs & Complaints Department Securities Commission Malaysia No 3 Persiaran Bukit Kiara Bukit Kiara Kuala Lumpur MANULIFE INVESTMENT INDIA EQUITY FUND page 7

8 APPENDIX: GLOSSARY Business Day a day when the Bursa Malaysia is open for trading and a day which is a dealing day as defined in the prevailing prospectus of MGF. Note: Bursa Malaysia refers to Bursa Malaysia Securities Berhad, the stock exchange managed or operated by Bursa Malaysia Berhad. Commencement date means the date of the first prospectus of the Fund. Deed the Deed entered into between the Manager and the Trustee dated 27 October 2009 in relation to the Fund and registered with the Securities Commission Malaysia. the Fund the Manulife Investment India Equity Fund. Guidelines means the Guidelines on Unit Trust Funds issued by the SC and as amended, substituted or replaced from time to time. IUTA means Institutional Unit Trust Adviser. MAMHK means Manulife Asset Management (Hong Kong) Limited. the Manager or we or us means Manulife Asset Management Services Berhad ( U) MGF means Manulife Global Fund, an entity incorporated in the Grand Duchy of Luxembourg ( Luxembourg ) as an open-ended investment company. MGF-INDF means Manulife Global Fund India Equity Fund. MIIEF means Manulife Investment India Equity Fund. Net Asset Value (NAV) the 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 trustee fee for the relevant day. NAV per Unit the NAV of the Fund divided by the number of Units in circulation at the valuation point. Offer Period means the period during which Units of the Fund are offered for sale. Prospectus means the Prospectus in respect of the Manulife Investment India Equity Fund. RM means Ringgit Malaysia, the lawful currency of Malaysia. Redemption Charge means a fee imposed pursuant to a redemption request. Sales Charge means a fee imposed pursuant to a successful application for Units. the Securities Commission the Securities Commission Malaysia. the Trustee HSBC (Malaysia) Trustee Berhad (1281-T). Unit or Units means a measurement of the right or interest of a Unit Holder in the Fund and means a unit (including a fraction of a unit) of the Fund. Unit Holder or Unit the person registered as the holder of a Unit or Units including Holders or investors persons jointly registered. UTC means Unit Trust Consultant. MANULIFE INVESTMENT INDIA EQUITY FUND page 8