CIMB-Principal Asia Pacific Dynamic Growth Fund

Transcription

1 CIMB-Principal Asia Pacific Dynamic Growth Fund RESPONSIBILITY STATEMENT This Product Highlights Sheet has been reviewed and approved by the directors or authorized committee or persons approved by the Board of CIMB-Principal Asset Management Berhad and they collectively and individually accept full responsibility for the accuracy of the information. Having made all reasonable inquiries, they confirm to the best of their knowledge and belief, there are no false or misleading statements, or omission of other facts which would make any statement in the Product Highlights Sheet false or misleading. STATEMENT OF DISCLAIMER The Securities Commission Malaysia has authorised the issuance of CIMB-Principal Asia Pacific Dynamic Growth Fund and a copy of this Product Highlights Sheet has been lodged with the Securities Commission Malaysia. The authorisation of the CIMB-Principal Asia Pacific Dynamic Growth Fund and lodgement of this Product Highlights Sheet, should not be taken to indicate that the Securities Commission Malaysia recommends the CIMB-Principal Asia Pacific Dynamic Growth 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 CIMB-Principal Asset Management Berhad, responsible for the CIMB-Principal Asia Pacific Dynamic Growth 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. 1

2 This Product Highlights Sheet only highlights the key features and risks of this unlisted capital market product. Investors are advised to request, read and understand the Prospectus before deciding to invest. PRODUCT HIGHLIGHTS SHEET CIMB-PRINCIPAL ASIA PACIFIC DYNAMIC GROWTH FUND 1. What is this product about? BRIEF INFORMATION ON THE PRODUCT CIMB-Principal Asia Pacific Dynamic Growth Fund is an open-ended equity fund issued by CIMB-Principal Asset Management Berhad, which aims to achieve capital appreciation over the medium to long term. This is neither a capital protected fund nor a capital guaranteed fund. 2. Who is this product suitable for? PRODUCT SUITABILITY The recommended investment timeframe for this Fund is medium to long term, which refers to a period of three (3) years or more. This fund is suitable for investors who: have a medium to long term investment horizon; are seeking capital appreciation over medium to long term; and/or willing to take moderate risks for potentially moderate capital returns over medium to long term. 3. What am I investing in? KEY PRODUCT FEATURES Fund Category/Type Based currency Benchmark Investment strategy Equity / Growth. US Dollar (USD). The performance of this Fund cannot be compared directly with any specific publicly available benchmark. However, the Fund has a target return of nine percent (9%) per annum. This is not a guaranteed return and is only a measurement of the Fund s performance. The Fund may not achieve the target return in any particular financial year but targets to achieve this growth over the medium to long term. The Fund will be managed with the aim of achieving a stable and positive investment return regardless of market conditions. As the Fund is an equity fund, under general market conditions, the Fund will invest in equities of companies which the Manager believes will exhibit good growth potential when compared against its peers or the overall market. The Fund may also invest up to 38% of its assets in debt securities, money market instruments and/or Deposits to be in line with the Fund s investment objective. At the discretion of the Manager, the Fund may opt to access into the equities and/or debt securities market via the investment in units of other CIS, subject to the requirements of the SC Guidelines and the Standards of Qualifying CIS. The Manager may also utilise derivative instruments such as futures contracts to hedge the portfolio. The use of derivatives is subject to the prevailing SC Guidelines and Standards of Qualifying CIS. The Fund will focus its investment in the Asia Pacific ex Japan region, i.e. companies that are domiciled in, listed in, and/or have operations or businesses that focus in the Asia Pacific ex Japan region, where the regulatory authority is an ordinary or associate member of the IOSCO, which include but not limited to Australia, the People's Republic of China, Hong Kong SAR, India, Indonesia, South Korea, Malaysia, New Zealand, the Philippines, Singapore, Taiwan, Thailand and Vietnam. If the investment is a listed security, the investment must be traded in an exchange that is a member of WFE. The asset allocation strategy for this Fund is as follows: between 60% to 98% (both inclusive) of the Fund s NAV will be invested in equities; up to 38% of the Fund s NAV may be invested in debt securities, money market instruments and/or Deposits; up to 20% of the Fund s NAV may be invested in units of other CIS; and at least 2% of the Fund s NAV in liquid assets. 2

3 Launch date Class MYR: 25 April Class SGD: 25 April Class AUD: 25 April Class USD: 25 April Financial year-end 28 February (29 February in the event of a leap year). Distribution policy Given the Fund s investment objective, the Class of the Fund is not expected to pay any distribution. Distributions, if any, are at the discretion of the Manager and will vary from period to period depending on the availability of realised income for distribution and performance of the Fund. 4. Who am I investing with? Manager Trustee Solicitor CIMB-Principal Asset Management Berhad. HSBC (Malaysia) Trustee Berhad. Soon Gan Dion & Partners. 5. What are the key risks associated with this product? KEY RISKS General risks of investing in a unit trust fund Returns not guaranteed General market environment risk Inflation risk Loan financing risk Specific risks of the Fund Investors should be aware that by investing in a unit trust fund, there is NO GUARANTEE of any income distribution or capital appreciation. In addition, there is a possibility that the investment objective of the fund may not be achieved. However, the manager mitigates this risk by ensuring diligent management of the assets of the fund based on a structured investment process. A unit trust fund may be prone to changing market conditions such as change in governmental policies or political conditions, which may result in uncertainties and fluctuations in the price of the securities of the funds investment portfolio and hence, the fund s net asset value. Inflation is the risk that a unit trust fund s assets or income from a unit trust fund s investments may be worth less in the future as inflation decreases the real value of money. As inflation increases, the real value of a fund s portfolio could decline. Inflation causes the real rate of return to be lower than the nominal rate of return. This risk can be mitigated by investing in securities that can provide a positive real rate of return. If financing is obtained to finance the purchases of units of a unit trust fund, investors will need to understand that financing increases the magnitude for gains or losses. Hence, the risk of using loan financing should be carefully assessed. Stock specific risk Country risk Liquidity risk Currency risk In general, the value of a particular stock fluctuates in response to activities of individual companies and in response to market conditions. These irregular fluctuations of the value of a particular stock may affect the unit price. The impact is however reduced as the Fund invests in a wide portfolio of investments; thus, spreading the element of risk through diversification. When the Fund invests into foreign markets, the foreign investments portion of the Fund may be affected by risks specific to the country which it invests in, which in turn affect the Fund s NAV and its growth. Such risks include adverse changes in the country s economic fundamentals, social and political stability. To mitigate these risks, the Manager will select securities and CIS that spread across countries within its portfolio in an attempt to avoid such events. Liquidity risk can be defined as the lack of ease with which a security can be sold. Generally, all investments are subject to a certain degree of liquidity risk depending on the nature of the investment instruments, market, sector and other factors. Nevertheless, the Manager will continuously conduct research and analysis work to actively manage the asset allocations. There are 2 levels of currency risk associated with the investment of this Fund: Currency risk at the Fund s portfolio level Any fluctuation in the exchange rate between the base currency and the currencies in which the Fund s investments are denominated may have an impact on the value of these investments. Currency risk at the Class level There are Classes of the Fund denominated in currencies other than the base currency. The impact of the exchange rate movement may lead to a depreciation of the value of the investor s holding as expressed in the base currency of the Fund. Investors should realize that currency risk is considered as one of the major risks due to the volatile nature of the foreign exchange market. 3

4 Credit and default risk Interest rate risk Risk of investing in emerging markets Credit risk refers to the expected ability of a security issuer or counterparty in making timely payment of interest and/or principal. Default risk refers to the risk of a security issuer or counterparty defaulting or failing to make timely payments of interest and/or principal. The Manager will impose investment limits on exposures for counterparties with different credit profiles as a precautionary step to limit any loss that may arise directly or indirectly as a result of a defaulted transaction. Generally when interest rates rise, debt security prices will tend to fall and vice versa. Therefore, the NAV of the Fund may also tend to fall when interest rates rise or are expected to rise. To mitigate interest rates exposure of the Fund, the Manager will manage the duration of the portfolio via short tenured and/or long tenured debt securities depending on the Manager s view on the future interest rate trend, which is based on its continuous fundamental research and analysis. Investing in assets from the emerging markets generally entails a greater risk and these markets are exposed to rapid political change and economic declines. These instabilities can influence investor confidence, which in turn can have a negative effect on exchange rates and security prices in emerging markets. Consequently, the Fund s NAV is negatively affected. The Manager will attempt to mitigate all these risks through its active asset allocation management and diversification, in addition to its continuous bottom up and top down research and analysis. FEES AND CHARGES 6. What are the fees and charges involved? Fees/Charges Class MYR Class AUD Class SGD Class USD Application Fee* Withdrawal Fee Switching Fee Transfer Fee CWA IUTAs : Up to 6.50% of the NAV per unit : Up to 5.50% of the NAV per unit Up to 1.00% of the NAV per unit. Withdrawal Fee is chargeable if a withdrawal is made within three (3) months from the Commencement Date. Thereafter, no Withdrawal Fee will be charged. All Withdrawal Fees will be retained by the Manager. Investors may be charged a Switching Fee equal to the difference (if any) between the Application Fees of the Class and Application Fees of the other class or fund to be switched into. Switching Fee will not be charged if the class or fund to be switched into has a lower Application Fee. Investors may be charged a Switching Fee of up to 1.00% of the NAV per unit. Switching out from this Fund within three (3) months from the Commencement Date may, at the discretion of the Manager, be subject to the Withdrawal Fee. Thereafter, only the Switching Fee will be charged. The Manager also has the discretion to waive the Switching Fee. Please refer to Annexure of the respective Class in the Prospectus for further details. A maximum of RM50.00 A maximum of AUD15 A maximum of SGD15 A maximum of USD15 may be charged for each transfer. Management Fee Trustee Fee Other charges payable directly by the investor when purchasing or redeeming the units Up to 1.80% per annum of the NAV of the Class in Malaysia. Up to 0.05% per annum (including local custodian fees and charges but excluding foreign subcustodian fees and charges) on the NAV of the Class. The foreign sub-custodian fee is dependent on the country invested and is charged monthly in arrears. Any applicable bank charges and other bank fees incurred as a result of an investment or redemption will be borne by the investor. Expenses directly related to the Fund Only expenses that are directly related to the Fund can be charged to the Fund. Examples of relevant expenses are audit fee and tax agent s fee. * Notwithstanding the maximum Application Fee disclosed above, investors may negotiate with the distributors for lower charges. Note: The Manager may, for any reason at any time, where applicable, waive or reduce the amount of any fees (except the Trustee Fee) or other charges payable by the investor in respect of the Fund, either generally (for all investors) or specifically (for any particular investor) and for any period or periods of time at its absolute discretion. 4

5 TRANSACTION INFORMATION 7. What are the transaction details? Class MYR Class AUD Class SGD Class USD Minimum initial* investment Minimum additional investment* Minimum withdrawal Minimum balance RM1,000 AUD1,000 SGD1,000 USD1,000 or such other amount as the Manager may from time to time decide. RM100 AUD100 SGD100 USD100 or such other amount as the Manager may from time to time decide. 500 units or such other amount as the Manager may from time to time decide. 1,000 units or such other amount as the Manager may from time to time decide. Switching Transfer facility Cooling-off period Switching may be available between a Class and other CIMB-Principal Funds (or its classes) which must be denominated in the same currency and approved by the SC for distribution in Malaysia. The Manager may, at its absolute discretion, allow switching into (or out of) the Class, either generally (for all Unit holders) or specifically (for any particular Unit holder). Please refer to Annexure of the respective Class in the Prospectus for further details. The Manager may, at its absolute discretion, allow/refuse Unit holders to transfer their units subject to such terms and conditions as may be stipulated by the Manager from time to time. Please refer to Annexure of the respective Class in the Prospectus for further details. Six (6) Business Days from the date the application form is received and accepted by the Manager or Distributor from the first time investor. However, corporations or institutions investing in the Fund are not entitled to the cooling-off rights. * For avoidance of doubt, the amount stipulated in the minimum initial investment and minimum additional investment includes any applicable fees and charges, such as sales charge, as the case may be, which are subject to any applicable taxes (including but not limited to GST). In other words, the amount is gross of fees, charges and any applicable taxes (including but not limited to GST. VALUATIONS AND EXITING FROM INVESTMENT 8. How often are valuations available? The valuation point for the Classes for a Business Day will be carried out on the next Business Day (T+1) by 4:00 p.m. This is to cater for the currency translation of the foreign securities/instruments to the base currency based on the bid exchange rate quoted by Bloomberg/Reuters at UK time 4:00 p.m. which is equivalent to 11:00 p.m. or 12:00 a.m. midnight (Malaysian time) on the same day, or such other time as stipulated in the Investment Management Standards issued by the Federation of Investment Managers Malaysia. The unit price (i.e. NAV per unit of the Fund) for a Business Day is available on our website at after 5:30 p.m. on the following Business Day. For any transactions (i.e. purchases, redemptions, switches or transfers) request received by the Manager before 4:00 p.m. on a Business Day, the price for these transactions will be the unit pricing for that Business Day. Transactions request received by the Manager at or after 4:00 p.m. will be processed using the unit pricing for the next Business Day. 9. How can I exit from this investment and what are the risks and costs involved? To exit from this investment, you may withdraw from the Class, switch out of the Class or transfer your unit holdings to other investors. Please refer to the Fees and Charges and Transaction Information sections for details on switching and transfer facility. Withdrawals can be made from the Class by completing a redemption form and sending it to any branch of any Distributors or the head office of CIMB-Principal. There is no restriction on the frequency of withdrawals. The withdrawal proceeds will be paid to the Unit holder within seven (7) business days or ten (10) days, whichever is lesser. Any applicable bank charges and other bank fees incurred as a result of a withdrawal by way of telegraphic transfer, bank cheque or other special payment method will be charged to you. THE MANAGER CIMB-Principal holds a Capital Markets Services License for fund management and dealing in unit trust products under the CMSA and specialises in managing and operating unit trusts for investor, both institutional and retail. CIMB-Principal s responsibilities include managing investment portfolios by providing fund management services to insurance/takaful companies, pension funds, unit trust companies, corporations and government institutions in Malaysia. In addition, CIMB-Principal is an approved private retirement scheme provider in Malaysia. CIMB-Principal originally commenced its operations as a unit trust company in November

6 CONTACT INFORMATION 10. Who should I contact for further information or to lodge a complaint? (i) You may contact our Customer Care Centre at (03) Our Customer Care Centre is available Mondays to Fridays (except on Selangor public holidays), from 8:30 a.m. to 5:30 p.m. (Malaysian time) or you can us at service@cimbprincipal.com.my. (ii) Alternatively, you may also contact: (a) Securities Industries Dispute Resolution Corporation (SIDREC): via phone to : via fax to : via to : info@sidrec.com.my via letter to : Securities Industry Dispute Resolution Center (SIDREC) Unit A-9-1, Level 9, Tower A, Menara UOA Bangsar No.5, Jalan Bangsar Utama 1, Kuala Lumpur (b) SC s Investor Affairs & Complaints Department: via phone to Aduan Hotline at : via fax to : via to : aduan@seccom.com.my via online complaint form available at via letter to : Investor Affairs & Complaints Department Securities Commission Malaysia No 3 Persiaran Bukit Kiara, Bukit Kiara, Kuala Lumpur (c) FIMM s Complaints Bureau: via phone to : via fax to : via to : legalcomp@fimm.com.my via online complaint form available at via letter to : Legal, Secretarial & Regulatory Affairs Federation of Investment Managers Malaysia , 6th Floor Wisma Tune, No. 19, Lorong Dungun Damansara Heights, Kuala Lumpur Application Fee - Preliminary charge on each investment. AUD - Australian Dollar. APPENDIX: GLOSSARY Bursa Malaysia - The stock exchange managed and operated by Bursa Malaysia Securities Berhad ( W). Business Day - Mondays to Fridays when Bursa Malaysia is open for trading, and/or banks in Kuala Lumpur and/or Selangor are open for business. Note: The Manager may declare certain Business Days to be a non-business Day although Bursa Malaysia and/or the banks is open for business if the Fund s investment in foreign markets which are closed for business is at least 50% of the Fund s NAV. This information will be communicated to the Unit holders via CIMB-Principal s website at Alternatively, Unit holders can contact our Customer Care Centre at CIMB-Principal or the Manager - CIMB-Principal Asset Management Berhad ( K). CIS - Means collective investment schemes. Classes - Any class of units representing similar interest in the assets of the Fund differentiated by currency, fees and charges. Class AUD - The Class of units issued by the Fund denominated in Australian Dollar. Class MYR - The Class of units issued by the Fund denominated in Ringgit Malaysia. Class SGD - The Class of units issued by the Fund denominated in Singapore Dollar. Class USD - The Class of units issued by the Fund denominated in United States Dollar. CMSA - Capital Markets and Services Act 2007 (as may be amended, varied, modified, updated and/or superseded from time to time). Commencement Date - The next Business Day immediately following the end of the initial offer period. CWA - Refers to the unit trust consultants of CIMB-Principal. Deed - The principal deed and any supplemental deed in respect of the Fund made between the Manager, the Trustee and the Unit holders of the Fund, agreeing to be bound by the provisions of the Deed. Fund - CIMB-Principal Asia Pacific Dynamic Growth Fund. 6

7 GST - Refers to the tax levied on goods and services pursuant to the Goods and Services Tax Act 2014 (as may be amended, varied, modified, updated and/or superseded from time to time). IOSCO - International Organization of Securities Commissions; for further details, please refer to IUTAs - Institutional Unit Trust Advisers. Management Fee - A percentage of the NAV of the Class that is paid to the Manager for managing the portfolio of the Fund. NAV of the Fund - The NAV of the Fund is the value of all the Fund s assets less the value of all the Fund s liabilities, at the point of valuation. For the purpose of computing the annual Management Fee (if any) and annual Trustee Fee (if any), the NAV of the Fund should be inclusive of the Management Fee and Trustee Fee for the relevant day. The NAV of a Class is the NAV of the Fund attributable to a Class at the same valuation point. NAV per Unit - The NAV attributable to a Class of units divided by the number of units in circulation for that Class, at the valuation point. Product Highlights Sheet - Refers to the disclosure document issued by the Manager that contains clear and concise information of the salient features of the Fund. Prospectus - Refers to the disclosure document issued by the Manager describing the details of the Fund. RM or MYR - Ringgit Malaysia. SC - Securities Commission Malaysia. SC Guidelines - Guidelines on Unit Trust Funds issued by the SC (as may be amended, varied, modified, updated and/or superseded from time to time). SGD - Singapore Dollar. Switching Fee - A charge that may be levied when switching is done from one fund or class to another. Transfer Fee - A nominal fee levied for each transfer of units from one Unit holder to another. Trustee Fee - A percentage of the NAV of the Class that is paid to the Trustee for its services rendered as trustee for the Fund. Unit holder - The registered holder for the time being of a unit of the Fund including persons jointly so registered. USD - United States Dollar. WFE - World Federations of Exchange. Withdrawal Fee - A charge levied upon redemption under certain terms and conditions (if applicable). Note: Unless the context otherwise requires, words importing the singular number should include the plural number and vice versa. Unless the context otherwise requires, time disclosed in this Prospectus should be indicated as Malaysian time. Reference to days in this Prospectus will be taken to mean calendar days unless otherwise stated. 7

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