Manulife Shariah Dana Ekuiti 6 February 2013 Manulife Shariah Dana Sukuk 4 March 2013

Transcription

1 MASTER PROSPECTUS CONVENTIONAL FUNDS DATE OF CONSTITUTION Manulife Equity Plus Fund 14 September 2009 Manulife Bond Plus Fund 14 September 2009 Manulife China Equity Fund 27 October 2009 Manulife Global Resources Fund 27 October 2009 Manulife India Equity Fund 27 October 2009 Manulife Cash Management Fund 13 August 2012 Manulife Flexi Growth & Income Fund 24 July 2015 SHARIAH-COMPLIANT FUNDS DATE OF CONSTITUTION Manulife Shariah Dana Ekuiti 6 February 2013 Manulife Shariah Dana Sukuk 4 March 2013 This Master Prospectus is dated 29 December MANAGER MANULIFE ASSET MANAGEMENT SERVICES BERHAD ( U) TRUSTEES HSBC (Malaysia) Trustee Berhad (1281-T) CIMB Islamic Trustee Berhad ( M) INVESTORS ARE ADVISED TO READ AND UNDERSTAND THE CONTENTS OF THE MASTER PROSPECTUS. IF IN DOUBT, PLEASE CONSULT A PROFESSIONAL ADVISER. FOR INFORMATION CONCERNING CERTAIN RISK FACTORS WHICH SHOULD BE CONSIDERED BY PROSPECTIVE a INVESTORS, SEE "RISK FACTORS" COMMENCING ON PAGE 40.

2 RESPONSIBILITY STATEMENTS This Master Prospectus 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, that there are no false or misleading statements, or omission of other facts which would make any statement in this Master Prospectus false or misleading. STATEMENTS OF DISCLAIMER The Securities Commission Malaysia has authorised the Funds and a copy of this Master Prospectus has been registered with the Securities Commission Malaysia. The authorisation of the Funds, and registration of this Master Prospectus, should not be taken to indicate that Securities Commission Malaysia recommends the said Funds or assumes responsibility for the correctness of any statement made, opinion expressed or report contained in this Master Prospectus. The Securities Commission Malaysia is not liable for any non-disclosure on the part of Manulife Asset Management Services Berhad responsible for the said Funds and takes no responsibility for the contents in this Master Prospectus. The Securities Commission Malaysia makes no representation on the accuracy or completeness of this Master 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. IF INVESTORS ARE UNABLE TO MAKE THEIR OWN EVALUATION, THEY ARE ADVISED TO CONSULT PROFESSIONAL ADVISERS. ADDITIONAL STATEMENTS Investors should note that they may seek recourse under the Capital Markets and Services Act 2007 for breaches of securities laws including any statement in the Master Prospectus that is false, misleading, or from which there is a material omission; or for any misleading or deceptive act in relation to the Master Prospectus or the conduct of any other person in relation to the Funds. Manulife Shariah Dana Ekuiti and Manulife Shariah Dana Sukuk have been certified as Shariah-compliant by the Shariah Adviser appointed for the Funds. i

3 TABLE OF CONTENTS 1. Corporate Directory 1 2. Glossary 3 3. The Fund Fund Information Manulife Bond Plus Fund (MBPF) Manulife Equity Plus Fund (MEPF) Manulife China Equity Fund (MICVF) Manulife Global Resources Fund (MIGRF) Manulife India Equity Fund (MIIEF) Manulife Cash Management Fund (MCMF) Manulife Shariah Dana Ekuiti (MSDE) Manulife Shariah Dana Sukuk (MSDS) Manulife Flexi Growth & Income Fund (MFGI) Risk Factors General Risks of Investing in a Unit Trust Fund Specific Risks Specific Risks for the Target Funds of MICVF, MIGRF and MIIEF Additional Information in relation to MSDE and MSDS Shariah Investment Guidelines Cleansing Process for the Fund Zakat (tithe) for the Fund Information on Manulife Global Fund (Target Fund) About Manulife Global Fund ( MGF ) Information of MGF-CVF Share Class A Information of MGF-GRF Share Class AA Information of MGF-INDF Share Class AA Investment Restriction of MGF-CVF, MGF-GRF and MGF-INDF Fees for investing in the Target Funds of MICVF, MIGRF and MIIEF Valuation Bases for the Funds Policy in respect of the Valuation Point Borrowings and Securities Lending Fees, charges and expenses Fees and Charges Directly Incurred Fees and Expenses Indirectly Incurred Policy on Stockbroking Rebates and Soft Commissions Transaction Information Unit Pricing Incorrect Pricing Policy on rounding adjustment Computation of NAV and NAV per Unit Information on Purchase of the Units Payment Methods Processing of Purchase/Redemption/Switching Request 89 ii

4 5.8 Making Additional or Regular Investment Cooling-off Period Information on Redemption of the Units Transfer of Units Switching Facility Mode of Distribution Unclaimed Monies Policy The Manager Background Role of the Manager Roles and Functions of the Board of Directors Board of Directors of the Manager Role of the Investment Committee Material Litigation Investment Team of the Manager Other Information The Trustees The Trustee for MBPF, MEPF, MICVF, MIGRF, MIIEF, MCMF and MFGI Background Information of the Trustee Experience in Trustee Business Duties and Responsibilities of the Trustee Retirement or Removal or Replacement of the Trustee Power of Trustee to Remove, Retire or Replace the Manager Statement of Responsibility by the Trustee Trustee s Disclosure of Material Litigation Trustee s Delegate Anti-money laundering and Anti-Terrorism Financing Provisions Statement of Disclaimer Consent to Disclosure The Trustee for MSDE and MSDS General Information Experience as Trustee to Unit Trust Funds Duties and Responsibilities of the Trustee Trustee s Delegate Material Litigation and Arbitration Shariah Adviser (for MSDE and MSDS) Profile of the Shariah Adviser General Information of IBFIM Experience in Advisory and Services Roles and Responsibilities of IBFIM as the Shariah Adviser Profile of the Shariah Team 102 iii

5 9. Salient Terms of the Deeds Rights and Liabilities of Unit Holders Rights of Unit Holders Liabilities of Unit Holders Provisions regarding Unit Holders Meetings Quorum Required for Convening a Unit Holders Meeting Unit Holders meeting convened by Unit Holders Unit Holders meeting convened by Manager or Trustee Termination of a Fund Circumstances that may lead to the termination of a Fund Procedure for the Termination of a Fund The Maximum Fees and Charges that may be imposed by the Manager and the Steps to be taken by the Manager to increase such Fees and Charges Maximum Rate of Direct Fees and Charges allowable by the Deeds Maximum Rate of Indirect Fees and Charges allowable by the Deeds Procedures to be taken to increase the Direct and Indirect Fees and Charges Other Expenses Permitted under the Deed Circumstances that may lead towards the Retirement, Removal or Replacement 109 of the Manager 9.7 Powers of the Manager to Remove the Trustee Retirement or Removal or Replacement of the Trustee Power of Trustee to Remove or Replace the Manager Related-Party Transaction OR Conflict of Interest Tax Adviser s Letter on the Taxation of the Funds and Unit Holders Additional information Documents Available for Inspection Unit Trust Loan Financing Risk Disclosure Statement Directors Declaration Statement Contact Us 126 iv

6 1. CORPORATE DIRECTORY The Manager Registered Office Business Address : Manulife Asset Management Services Berhad ( U) : 16th Floor, Menara Manulife No. 6, Jalan Gelenggang Damansara Heights Kuala Lumpur Tel. No. : Fax No. : : 13th Floor, Menara Manulife No. 6, Jalan Gelenggang Damansara Heights Kuala Lumpur Tel. No. : Fax No. : MY_CustomerService@manulife.com Website : Trustee For MBPF, MEPF, MICVF, MIGRF, MIIEF, MCMF and MFGI The Trustee : HSBC (Malaysia) Trustee Berhad (1281-T) Registered Office & Business Address The Trustee s Delegate (Foreign) Registered Office & Business Address The Trustee s Delegate (Local) Registered Office & Business Address 13th Floor, Bangunan HSBC, South Tower No. 2, Leboh Ampang Kuala Lumpur Tel. No. : Fax No. : : HSBC Institutional Trust Services (Asia) Limited 6th Floor, Tower One, HSBC Centre 1 Sham Mong Road Kowloon, Hong Kong Tel. No. : Fax No. : : The Hong Kong And Shanghai Banking Corporation Limited (as Custodian) and assets held through HSBC Nominees (Tempatan) Sdn Bhd ( D) No. 2, Leboh Ampang Kuala Lumpur Tel. No. : Fax No. :

7 Trustee for MSDE and MSDS The Trustee : CIMB Islamic Trustee Berhad ( M) Registered Office : Level 13, Menara CIMB Jalan Stesen Sentral 2 Kuala Lumpur Sentral Kuala Lumpur Tel. No. : Fax No. : Website : Business Address : Level 21, Menara CIMB Jalan Stesen Sentral 2 Kuala Lumpur Sentral Kuala Lumpur Tel. No. : Fax No. : The Trustee s Delegate : CIMB Islamic Bank Berhad ( H) Registered Office : Level 13, Menara CIMB Jalan Stesen Sentral 2 Kuala Lumpur Sentral Kuala Lumpur Tel. No. : Fax No. : Website : Business Address : Level 21, Menara CIMB Jalan Stesen Sentral 2 Kuala Lumpur Sentral Kuala Lumpur Tel. No. : Fax No. : Shariah Adviser for MSDE and MSDS Shariah Adviser : IBFIM ( W) Registered Office : No: 149A, 149B, 151B Persiaran Raja Muda Musa Port Klang Selangor Darul Ehsan Website : Business Address : 3rd Floor, Menara Takaful Malaysia Jalan Sultan Sulaiman Kuala Lumpur Tel. No. : Fax: No. :

8 2. GLOSSARY 2010 Law means the Luxembourg law of 17 December 2010 relating to undertakings for collective investment, or any legislative replacements or amendments thereof. the Act or CMSA the Capital Markets and Services Act Agency Exclusive Fund(s) means the following funds or any other funds determined by the Manager: Fund Name Manulife Investment Growth Fund Manulife Investment Progress Fund Manulife Investment Bond Fund Manulife Investment Al-Faid Manulife Investment As-Saad Manulife Investment Syariah Index Fund Manulife Investment Value Fund Manulife Investment Balanced Fund Manulife Investment Equity Index Fund Manulife Investment Regular Savings Fund Manulife Investment Money Market Fund Manulife Investment-ML Flexi Fund Manulife Investment Al-Fauzan Manulife Investment Dividend Fund Manulife Investment Al-Umran Manulife Investment-CM Flexi Fund Manulife Investment Al-Ma mun Manulife Investment-HW Flexi Fund Manulife Investment-CM Shariah Flexi Fund Manulife Investment Shariah Progress Fund Manulife Investment-HW Shariah Flexi Fund Manulife Investment-ML Shariah Flexi Fund Fund Category Equity Equity Bond Equity Bond Equity Equity Balanced Equity Equity Money market Mixed assets Equity Equity Balanced Mixed assets Money market Mixed assets Mixed assets Equity Mixed assets Mixed assets BNM Bursa Malaysia Business Day Bank Negara Malaysia. means the stock exchange managed or operated by Bursa Malaysia Securities Berhad. means a day on which Bursa Malaysia is open for business. Note: The Manager may declare certain Business Days to be nonbusiness days, although Bursa Malaysia is open for business, if the foreign markets in which the Fund is invested therein are closed for business and/or it is not a dealing day in the country of domicile of the Target Fund. This is to ensure that investors will be given a fair valuation of the Fund at all times, be it when buying or redeeming units of the Fund. 3

9 Commencement Date in respect of MEPF, MBPF, MICVF, MIGRF and MIIEF, means the date of the first prospectus of the respective Funds. in respect of MCMF, MSDE, MSDS and MFGI, means the date on which investments of the Fund may first be made and is the date which falls on the next Business Day after the expiry of the Offer Period. Note: Offer Period means the period during which Units of the respective Fund are offered for sale at the offer price, which is a fixed price per Unit payable by an applicant for the purchase of Unit. Community law CSSF Dealing day Deed(s) Eligible Market means a body of treaties and legislation, such as Regulations and Directives, which have direct effect or indirect effect on the laws of European Union member states. means the Commission de Surveillance du Secteur Financier. means, in relation to the Shares of any Target Fund, any day which is a Business Day, other than one falling within a period of suspension (not including the first such day) and, unless the directors of the Target Funds determine otherwise, the day immediately following the last day within such a period and/or such other day or days in addition thereto or in substitution therefor as the directors of the Target Funds may from time to time determine. means the master deeds and supplemental deeds in respect of the Funds made between the Manager and the Trustees. means a market that: (a) is regulated by a regulatory authority; (b) operates regularly; (c) is open to the public; and (d) has adequate liquidity for the purposes of the respective Funds. For investments in a foreign market*, a foreign market is an eligible market where it has satisfactory provisions relating to: (a) (b) (c) (d) (e) (f) the regulation of the foreign market; the general carrying on of business in the market with due regard to the interests of the public; adequacy of market information; corporate governance; disciplining of participants for conduct inconsistent with just and equitable principles in the transaction of business, or for a contravention of, or a failure to comply with the rules of the market; and arrangements for the unimpeded transmission of income and capital from the foreign market. *Note: Investments in a foreign market are limited to markets where the regulatory authority is an ordinary or associate member of the International Organization of Securities Commissions (IOSCO). 4

10 EPF EPF-MIS FPI FiMM means Employees Provident Fund. means Employees Provident Fund Members Investment Scheme. means Foreign Portfolio Investor, which is regulated by The Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, means the Federation of Investment Managers Malaysia. Financial institution a) if the institution is in Malaysia: (i) licensed bank; (ii) licensed investment bank; or (iii) Islamic bank; b) if the institution is outside Malaysia, any institution that is licensed/registered/approved/authorised to provide financial services by the relevant banking regulator. Forward Pricing Fund(s) means the NAV per Unit of the Fund based on the next valuation point after a purchase or redemption request is received by the Manager. means collectively or individually, as the case may be, the following funds: (i) Manulife Equity Plus Fund ( MEPF ); (ii) Manulife Bond Plus Fund ( MBPF ); (iii) Manulife China Equity Fund ( MICVF ); (iv) Manulife Global Resources Fund ( MIGRF ); (v) Manulife India Equity Fund ( MIIEF ); (vi) Manulife Cash Management Fund ( MCMF ); (vii) Manulife Shariah Dana Ekuiti ( MSDE ); (viii) Manulife Shariah Dana Sukuk ( MSDS ); and (ix) Manulife Flexi Growth & Income Fund ( MFGI ). General Investment Account Greater China Region Guidelines refers to investment account which is based on Shariah contracts and applicable for investment purposes. refers to People s Republic of China, Hong Kong, Macao and Taiwan collectively. means the Guidelines on Unit Trust Funds issued by the SC and as amended, substituted or replaced from time to time. 5

11 Investment Manager(s) of the Target Funds means collectively or individually, as the case may be, the following investment manager of the Target Funds: (i) Manulife Asset Management (Hong Kong) Limited for MGF- INDF; (ii) (iii) Value Partners Limited for MGF-CVF; and Manulife Asset Management (US) LLC for MGF-GRF. Islamic deposits means a sum of money accepted or paid in accordance with Shariah (a) on terms under which it will be repaid in full, with or without any gains, return or any other consideration in money or money s worth, either on demand or at a time or in circumstances agreed by or on behalf of the person making the payment and person accepting it; or (b) under an agreement, on terms whereby the proceeds under the arrangement to be paid to the person paying the sum of money shall not be less than such sum of money, but excludes money paid bona fide (i) (ii) (iii) (iv) by way of an advance or a part payment under a contract for the sale, hire or other provision of property or services, and is repayable only in the event that the property or services are not in fact sold, hired or otherwise provided; by way of security for the performance of a contract or by way of security in respect of any loss which may result from the non-performance of a contract; without limiting paragraph (ii), by way of security for the delivery up or return of any property, whether in a particular state of repair or otherwise; and in such other circumstances, or to or by such other person, as set out in schedule 2 of the Islamic Financial Services Act ISDA IUTAs refers to the International Swaps and Derivatives Association a trade organization of participants in the market for over-the-counter derivatives. means Institutional Unit Trust Advisers. Licensed bank has the same meaning as given under the Financial Services Act Licensed investment bank Long term has the same meaning as given under the Financial Services Act means a period of 5 years and above. 6

12 MAMHK MAMUS Manager/ Management Company MARC Master Prospectus means Manulife Asset Management (Hong Kong) Limited. means Manulife Asset Management (US) LLC. refers to Manulife Asset Management Services Berhad ( U) means Malaysian Rating Corporation Berhad. means this master prospectus, which is in relation to the following Funds: (i) Manulife Equity Plus Fund ( MEPF ); (ii) Manulife Bond Plus Fund ( MBPF ); (iii) Manulife China Equity Fund ( MICVF ); (iv) Manulife Global Resources Fund ( MIGRF ); (v) Manulife India Equity Fund ( MIIEF ); (vi) Manulife Cash Management Fund ( MCMF ); (vii) Manulife Shariah Dana Ekuiti ( MSDE ); (viii) Manulife Shariah Dana Sukuk ( MSDS ); and (ix) Manulife Flexi Growth & Income Fund ( MFGI ). Medium to long term MGF MGF-CVF MGF-GRF MGF-INDF MHB Net Asset Value or NAV NAV per Unit PRC or Mainland China means a period of 3 to more than 5 years. means Manulife Global Fund, an entity incorporated in the Grand Duchy of Luxembourg ( Luxembourg ) as an open-ended investment company. means Manulife Global Fund China Value Fund. means Manulife Global Fund Global Resources Fund. means Manulife Global Fund India Equity Fund. means Manulife Holdings Berhad (24851-H). means the Net Asset Value of the Fund which 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 annual management fee and the annual trustee fee for the relevant day. means the NAV of the Fund divided by the total number of Units in circulation at the valuation point. People s Republic of China. 7

13 QFII RAM Redemption charge Redemption price Regulated Market(s) Ringgit Malaysia or RM or MYR RQFII Sales charge SC Shanghai-Hong Kong Stock Connect Shariah Shariah Adviser Shariah Requirements Selling price means Qualified Foreign Institutional Investor pursuant to the relevant PRC laws and regulations. means RAM Rating Services Berhad. means a fee imposed pursuant to a redemption request. means the NAV per Unit payable to a Unit Holder for a Unit in the Fund pursuant to a redemption request and does not include any redemption charge which may be imposed. means a regulated market which operates regularly and is recognised and open to the public. means the lawful currency for Malaysia. means RMB Qualified Foreign Institutional Investor pursuant to the relevant PRC laws and regulations. means a fee imposed pursuant to a successful application for Units. means the Securities Commission Malaysia. means a program jointly implemented by the China Securities Regulatory Commission and the Securities and Futures Commission of Hong Kong SAR to permit foreign investors to invest in the Shanghai Stock Exchange via the Stock Exchange of Hong Kong Limited and to allow Chinese investors to invest in the Stock Exchange of Hong Kong Limited via the Shanghai Stock Exchange. means Islamic Law comprising the whole body of rulings pertaining to human conducts derived from sources of Shariah. means IBFIM ( W) or any Shariah adviser appointed for the MSDE and MSDS which includes its permitted assigns, successors in title and any new or replacement Shariah adviser. is a phrase or expression which generally means making sure that any human conduct must not involve any elements which are prohibited by Shariah principles and that in performing that conduct all the essential elements that make up the conduct must be present and each essential element must meet all the necessary conditions required by Shariah principles for that element. means the NAV per Unit payable by an applicant for a Unit pursuant to a successful application for Units and does not include any sales charge which may be imposed. 8

14 Share(s) Share class(es) Short term Special Resolution Sukuk Target Funds means fully paid shares of no par value comprised within the separate funds belonging to MGF representing the capital of MGF. means a series of Shares within MGF which may differ from other share classes in respect of its charging structure, dividend policy, hedging policy, investment policy or other specific features as may be described herein. a period of not more than 365 days. 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 3/4 of the value of the Units held by the Unit Holders voting at the meeting in person or by proxy. refers to certificates of equal value which evidence undivided ownership or investment in the assets using Shariah principles and concepts endorsed by the Shariah Advisory Council of the Securities Commission ( SACSC ). means MGF-CVF, MGF-GRF and MGF-INDF, which MICVF, MIGRF and MIIEF invest in respectively. Trustee(s) collectively or individually, as the case may be, refers to : (i) (ii) HSBC (Malaysia) Trustee Berhad; and CIMB Islamic Trustee Berhad. Unit or Units Unit Holder(s) UCITS USD UTCs VP 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. means the person registered as the holder of a Unit or Units including persons jointly registered. means an undertaking for collective investment in transferable securities within the meaning of EC European Parliament and Council Directive 2009/65 of 13 July 2009 as may be amended from time to time. means the lawful currency of the United States of America. means Unit Trust Consultants. means Value Partners Limited. 9

15 3. THE FUND 3.1 FUND INFORMATION Manulife Bond Plus Fund (MBPF) Base Currency Fund Category Fund Type Commencement Date Financial Year End Investment Objective MYR Bond Income 29 December October The Fund aims to maximise returns from a combination of income* and capital appreciation by investing primarily in fixed income securities. Note: Any material changes to the Fund s investment objective would require Unit Holders approval. *Note: Income distribution (if any) may be made in the form of cash or additional Units reinvested into the Fund. Investment Policy and Strategy The Fund seeks to achieve its objective by investing in fixed income securities such as sovereign (including quasi-sovereign) bonds, corporate bonds and money market instruments. The Fund may invest up to of 30% of the Fund s NAV in foreign fixed income securities such as in the Asia Pacific, whenever opportunities arise. Asia Pacific countries include but are not limited to Australia, Hong Kong, Indonesia and Singapore. The Fund may invest in collective investment schemes both in domestic and foreign markets provided it is consistent with the investment objective of the Fund. Although the Fund is actively managed, the trading strategy will depend on market opportunities and interest rate expectations. The Fund adopts both a bottom-up and top-down approach to maximise its potential returns, with particular emphasis on fundamental analysis. The Manager analyses general economic and market conditions and forms a view on market themes, opportunities and risks. Fixed income securities selected for investments undergo a credit evaluation process that entails an assessment of the credit risk factors of the issuer and also the structure of the debt, whilst also considering relative value such as liquidity and credit spread. As the Fund invests in foreign markets, the Manager may enter into derivative trades solely for hedging purposes to reduce the Fund s exposure to foreign exchange fluctuations; the derivative trades would not be considered as investments of the Fund but rather a riskmanagement device. 10

16 Asset Allocation Investment Philosophy Risk Management Minimum 70% and up to 98% of the Fund s NAV will be invested in fixed income securities. At least 2% of the Fund s NAV will be invested in liquid assets such as money market instruments which include term deposits, repurchase agreements and short-term cash placements with financial institutions for liquidity purposes. As part of a temporary defensive measure, the Manager may lower the fixed income exposure to below the minimum 70% limit if the Manager is of the opinion that the investment climate is deemed to be unfavorable or under adverse markets, economic, political or any other conditions. The Manager will then decide on the best appropriate asset allocation strategy and reallocate the Fund s fixed income investment into other more defensive investments such as deposits and money market instruments. The Manager believes that there are opportunities to add value through proprietary research. A prudent and disciplined investment process should result in consistent performance with reduced volatility. Risk management is an integral part of the Manager s investment process. In ensuring compliance with the Guidelines, and the Fund s investment limits and restrictions, the Manager has in place clearly defined policies and procedures that have been approved by the Board of Directors of the Manager. In addition, the Manager conducts regular review on the economic, political and social factors to evaluate the effects of those factors on the securities held. Regular meetings are also held to deliberate on these factors, investment themes and portfolio decisions. The Manager has in place a system for the monitoring of the transactions to ensure compliance with the Guidelines, and the Fund s investment limits and restrictions. As part of the risk management strategy to mitigate the risk arising from factors which includes foreign currency exposure and/or foreign interest rate movements, the Fund may employ hedging strategies to manage risks posed to the Fund. Distribution Policy Benchmark Subject to the availability of income, the Fund will distribute income on an annual basis. The benchmark for the Fund is based on the 12-month fixed deposit rate quoted by Malayan Banking Berhad. The benchmark is available at The rationale for this is that the Fund is essentially managed in a fairly conservative manner with the primary aim of outperforming fixed deposit returns since the risk profile of the target investors are those who cannot tolerate the volatility of equity instruments, but seek returns higher than fixed deposit. Note: The risk profile of the Fund is different from the risk profile of the benchmark. The Fund will have higher risk than the benchmark and hence investors may assume higher return from the Fund compared to the benchmark. 11

17 Permitted Investments The Fund may invest in any of the following: (a) Fixed income securities traded on the Bursa Malaysia or on an organised over-the-counter market or any other market considered as an Eligible Market; (b) (c) (d) (e) (f) Unlisted fixed income securities pending listing on the Bursa Malaysia, or on an organised over-the-counter market or any other market considered as an Eligible Market; Unit/shares on collective investment schemes which are in line with the Fund s objective; Derivative instruments, including but not limited to options, futures contracts, forward contracts and swaps; Liquid assets (including money market instruments and deposits with any financial institutions); and Other securities/instruments as permitted by the SC from time to time, which are in line with the Fund s objective. Note: For investments in a foreign market, the foreign market must be an Eligible Market and are limited to markets where the regulatory authority is an ordinary or associate member of the International Organization of Securities Commissions (IOSCO). Investment Restrictions and Limits Subject to the Guidelines, the purchase of permitted investments stated above shall not contravene the following limits: (a) the value of the Fund s investments in debentures issued by any single issuer must not exceed 20% of the Fund s NAV; (b) (c) (d) (e) (f) the single issuer limit in (a) above may be increased to 30% 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; the value of the Fund s investments in debentures issued by any one group of companies must not exceed 30% of the Fund s NAV; the aggregate value of the Fund s investments in transferable securities, money market instruments, deposits and over-thecounter (OTC) derivatives issued by or placed with (as the case may be) any single issuer/institution must not exceed 25% of the Fund s NAV; for the purpose of (d) above, where the single issuer limit is increased to 30% pursuant to (b) above, the aggregate value of the Fund s investment must not exceed 30%; the value of the Fund s placement in deposits with any single financial institution must not exceed 20% of the Fund s NAV; 12

18 (g) for investments in derivatives: - the exposure to the underlying assets must not exceed the investment spread limits stipulated in the Guidelines; and - the value of the Fund s OTC derivatives transaction with any single counterparty must not exceed 10% of the fund s NAV. (h) (i) (j) (k) (l) the value of the Fund s investments in Units/shares of any collective investment scheme must not exceed 20% of the Fund s NAV; the Fund s investments in transferable securities (other than debentures) must not exceed 10% of the securities issued by any single issuer; the Fund s investments in debentures must not exceed 20% of the debentures issued by any single issuer; the Fund s investments in money market instruments must not exceed 10% of the instruments issued by any single issuer. This limit does not apply to money market instruments that do not have a pre-determined issue size; and the Fund s investments in collective investment schemes must not exceed 25% of the Units/shares in any one collective investment scheme. The above limits/restrictions do not apply to securities/instruments issued or guaranteed by the Malaysian government or BNM. A 5% allowance in excess of any limit or restriction imposed is permitted where the limit or restriction is breached through an appreciation or depreciation of the Fund s NAV (whether as a result of an appreciation or depreciation in value of the Fund s property or as a result of redemption of Units or payment made out of the Fund). The Manager shall not make any further acquisition to which the relevant limit is breached, and the Manager shall, within 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. Investors Profile This Fund would be suitable for investors who: (a) (b) have moderate risk tolerance with a medium to long term investment horizon; and seek a steady income stream for their investments. 13

19 3.1.2 Manulife Equity Plus Fund (MEPF) Base Currency Fund Category Fund Type Commencement Date Financial Year End Investment Objective MYR Equity Growth 29 December October The Fund aims to provide medium to long term capital growth by investing primarily in equities and equity-related securities. Note: Any material changes to the Fund s investment objective would require Unit Holders approval. Investment Policy and Strategy To meet its investment objective, the Manager will invest in equities and equity-related securities. The Fund may invest up to 30% of the Fund s NAV in foreign equities and equity related securities such as in the Asia Pacific, whenever opportunities arise. Asia Pacific countries include but are not limited to Australia, Hong Kong, Indonesia, Singapore and Thailand. The Fund may also invest in collective investment schemes provided it is consistent with the investment objective of the Fund. Although the Fund is actively managed, the trading strategy will depend on market opportunities and interest rate expectations. The Fund adopts both a bottom-up and top-down approach with particular emphasis on fundamental analysis. This allows the Manager to determine which industry may benefit from current and future changes in the economy when undergoing the process of sector allocation. At the same time, it facilitates the Manager to select individual equities or equity related securities of the underlying companies with good fundamentals and proven business models. As the Fund invests in foreign markets, the Manager may enter into derivative trades solely for hedging purposes to reduce the Fund s exposure to foreign exchange fluctuations; the derivative trades would not be considered as investments of the Fund but rather a riskmanagement device. Asset Allocation The Fund will invest minimum 70% and up to 98% of the Fund s NAV in equities and equity related securities. As part of a temporary defensive measure, the Manager may lower the exposure in relation to equity and equity related securities to below the minimum 70% limit if the Manager is of the opinion that the investment climate is deemed to be 14

20 unfavorable or under adverse markets, economic, political or any other conditions. The Manager will then decide on the best appropriate asset allocation strategy and re-allocate the Fund s investments into other more defensive investments such as deposits and short term money market instruments. For liquidity, the Fund holds at least 2% of the Fund s NAV in the form of liquid assets. Investment Philosophy Risk Management The Manager believes that companies with strong earnings potential and that provide a clear catalyst for future growth and sustainable performance to portfolio over time. The Manager believes in a disciplined approach to stock selection through systematic bottomup, crossed with top-down investment process. In addition, the Manager believes that sophisticated risk management and portfolio construction control will add risk-adjusted return to portfolio over the longer term. Risk management is an integral part of the Manager s investment process. In ensuring compliance with the Guidelines, and the Fund s investment limits and restrictions, the Manager has in place clearly defined policies and procedures that have been approved by the Board of Directors of the Manager. In addition, the Manager conducts regular review on the economic, political and social factors to evaluate the effects of those factors on the securities held. Regular meetings are also held to deliberate on these factors, investment themes and portfolio decisions. The Manager also undertakes regular monitoring of the transactions to ensure compliance with the Guidelines, and the Fund s investment limits and restrictions. As part of the risk management strategy to mitigate the risk arising from factors which includes foreign currency exposure and/or foreign interest rate movements, the Fund may employ hedging strategies to manage risks posed to the Fund. Distribution Policy Benchmark The Fund intends to distribute income, if any, on an annual basis. The benchmark for the Fund is the FTSE Bursa Malaysia KLCI (FBM KLCI) and is available at Bloomberg. The FBM KLCI is the key barometer for the market activity in Malaysia and it is widely available to the public and is published daily in the newspapers. Note: The risk profile of the Fund is different from the risk profile of the benchmark. Permitted Investments The Fund may invest in the following: (a) Equities and equity related securities traded on Bursa Malaysia or any other market considered as an Eligible Market; (b) Unlisted securities including securities not listed or quoted on a stock exchange but have been approved by the relevant regulatory authority for such listing or quotation and are offered directly to the Fund by the issuer; 15

21 (c) (d) (e) (f) Collective investment schemes which are in line with the Fund s objective; Derivative instruments, including but not limited to options, futures contracts, forward contracts and swaps; Liquid assets (including but not limit to money market instruments and deposits with any financial institutions); and Other securities/instruments as permitted by the SC from time to time. Note: For investments in a foreign market, the foreign market must be an Eligible Market and are limited to markets where the regulatory authority is an ordinary or associate member of the International Organization of Securities Commissions (IOSCO). Investment Limits/ Restriction Subject to the Guidelines, the purchase of permitted investments stated above shall not contravene the following limits: (a) (b) (c) (d) (e) (f) (g) (h) the value of the Fund s investments in ordinary shares issued by any single issuer must not exceed 10% of the Fund s NAV; the value of the Fund s investments in unlisted securities must not exceed 10% of the fund s NAV; the value of the Fund s investments in transferable securities and money market instruments issued by any single issuer must not exceed 15% of the Fund s NAV; the value of the Fund s placement in deposits with any single financial institution must not exceed 20% of the Fund s NAV; the aggregate value of the Fund s investments in transferable securities, money market instruments, deposits, and over-thecounter (OTC) derivatives issued by or placed with (as the case may be) any single issuer/institution must not exceed 25% of the Fund s NAV; the value of the Fund s investments in units/shares of any collective investment scheme must not exceed 20% of the Fund s NAV; the value of the Fund s investments in transferable securities and money market instruments issued by any group of companies must not exceed 20% of the Fund s NAV; for investments in derivatives: - the exposure to the underlying assets must not exceed the investment spread limits stipulated in the Guidelines; and - the value of the Fund s OTC derivatives transaction with any single counterparty must not exceed 10% of the Fund s NAV. 16

22 (i) (j) (k) the Fund s investments in transferable securities (other than debentures) must not exceed 10% of the securities issued by any single issuer; the Fund s investments in money market instruments must not exceed 10% of the instruments issued by any single issuer. This limit does not apply to money market instruments that do not have a pre-determined issue size; and the Fund s investments in collective investment schemes must not exceed 25% of the units/shares in any one collective investment scheme. The above limits/restrictions do not apply to securities/instruments issued or guaranteed by the Malaysian government or BNM. A 5% allowance in excess of any limit or restriction imposed is permitted where the limit or restriction is breached through an appreciation or depreciation of the Fund s NAV (whether as a result of an appreciation or depreciation in value of the Fund s property or as a result of redemption of units or payment made out of the Fund). The Manager shall not make any further acquisition to which the relevant limit is breached, and the Manager shall, within 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. Investors Profile This Fund would be suitable for investors who: a) seek returns that are potentially higher than fixed deposit rates; b) have a medium to long term investment horizon; and c) have high risk tolerance Manulife China Equity Fund (MICVF) Base Currency Fund Category Fund Type Commencement Date Financial Year End Investment Objective MYR Feeder Fund Growth 7 January October Manulife China Equity Fund invests in the MGF-CVF which aims to achieve long term capital growth through investment, primarily* in under-valued companies with long term potential and substantial business interest in the Greater China Region (which includes PRC, Hong Kong and Taiwan) which are listed or traded on stock exchanges of Shanghai, Shenzhen, Hong Kong, Taipei or other exchanges. 17

23 *primarily means mainly 70% invested Note: Any material changes to the Fund s investment objective would require Unit Holders approval. Investment Policy and Strategy The Fund will invest principally in MGF-CVF Share Class A managed by VP. MGF-CVF is a collective investment scheme constituted in Luxembourg. MGF-CVF was established on 1 April This Fund is a feeder fund that invests at least 95% of its NAV in MGF- CVF. The risk management strategies and techniques employed will be at the MGF-CVF level by VP with its investment strategy that involves diversification among its asset allocation to invest in undervalued stocks or companies in China market, as elaborated in section 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. Specific risks associated with such securities and investments are as elaborated in section Notwithstanding the above, the Manager may, in consultation with the Trustee and with the Unit Holder s approval, replace MGF-CVF with another fund of a similar objective if, in the Manager s opinion, MGF- CVF no longer meets this Fund s investment objective, or when acting in the interest of the Unit Holders. In all circumstances the MICVF will continue investing at least 95% of its NAV in MGF-CVF as such the performance of MGF-CVF will reflect on the MICVF s performance. Asset Allocation Its indicative asset allocation is as follows: - At least 95% of the Fund s NAV in MGF-CVF Share Class A. - 2%-5% of the Fund s NAV in money market instruments (including fixed income securities with a maturity period of not more than 365 days) and placement of deposits with financial institutions for liquidity purposes. In the event of adverse market conditions, the Fund will maintain its exposure in the Target Fund at 95% of the Fund s NAV. As such, there is no temporary defensive measure for the Fund and as a result, the Fund will be following the temporary defensive measure adopted by the Investment Manager of the Target Fund. Distribution Policy Benchmark The Fund intends to distribute income, if any, on an annual basis. The benchmark for the Fund is the FTSE All World Greater China Index. Investors may refer to Bloomberg and/or the Manager for the performance of this benchmark. Note: The risk profile of the Fund is different from the risk profile of the benchmark. 18

24 Permitted Investments and Investment Restrictions and Limits This Fund may invest in units of the MGF-CVF or such other collective investment schemes having a similar objective and liquid assets consisting of money market instruments (including fixed income securities of not more than 365 days) and deposits with any financial institutions and any other forms of investments as may be permitted by the SC from time to time. The Fund may invest up to 98% of the Fund s NAV in the MGF-CVF. This Fund is a feeder fund and must not invest in a) a fund-of-funds; b) a feeder fund; and c) any sub-fund of an umbrella scheme which is a fund-of-funds or a feeder fund. The limits and restrictions mentioned herein must be complied with at all times based on the most up-to-date value of the Fund s investments. However, a 5% allowance in excess of the limits or restrictions is permitted where the limit or restriction is breached through an appreciation or depreciation of the Net Asset Value of the Fund (whether as a result of an appreciation or depreciation of the investments or as a result of repurchase of units or payment made from the Fund). The Manager will not make any further acquisitions to which the relevant 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. Collective Investment Scheme Liquid Assets As this Fund is a feeder fund, it will invest predominantly in a collective investment scheme i.e. MGF-CVF which is constituted in Luxembourg. This Fund shall not borrow in connection with its activities or lend any of its cash or investments unless permitted by the Guidelines. The Manager in allocating asset of the Fund, will maintain a minimum liquid assets level of 2% of the NAV of the Fund for the purpose of meeting redemptions and to enable the proper and efficient management of the Fund. However, this does not preclude the Manager from lowering or raising the liquid assets level beyond the stipulated level to allow the Manager to react to the prevailing market conditions and to manage investment risk when circumstances warrant it. Investors Profile This Fund would be suitable for investors who: a) wish to participate in the potential of the Greater China Region markets; and b) are willing to accept high risk in their investments in order to achieve long term capital growth. 19

25 3.1.4 Manulife Global Resources Fund (MIGRF) Base Currency Fund Category Fund Type Commencement Date Financial Year End Investment Objective MYR Feeder Fund Growth 7 January October Manulife Global Resources Fund invests in the MGF-GRF which aims to achieve long term capital growth mainly through equities and equityrelated investments of companies involved in resources such as gas, oil, coffee, sugar and related industries globally which are listed on any stock exchange. Note: Any material changes to the Fund s investment objective would require Unit Holders approval. Investment Policy and Strategy The Fund will invest principally in MGF-GRF managed by MAMUS. MGF-GRF is a collective investment scheme constituted in Luxembourg. MGF-GRF was established on 29 January This Fund is a feeder fund that invests at least 95% of its NAV in MGF- GRF. The risk management strategies and techniques employed will be at the MGF-GRF level by MAMUS with its investment strategy that involves diversification among its asset allocation to invest at least 70% of its non-cash assets in the equity securities of companies within the natural resources sector, such as hydrocarbon, precious metal and basic product, as elaborated in section 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. Specific risks associated with such securities and investments are as elaborated in section Notwithstanding the above, the Manager may, in consultation with the Trustee and with the Unit Holder s approval, replace MGF-GRF with another fund of a similar objective if, in the Manager s opinion, MGF- GRF no longer meets this Fund s investment objective, or when acting in the interest of the Unit Holders. In all circumstances the MIGRF will continue investing at least 95% of its NAV in MGF-GRF as such the performance of MGF-GRF will reflect on the MIGRF s performance. 20

26 Asset Allocation Its indicative asset allocation is as follows: - At least 95% of the Fund s NAV in MGF-GRF Share Class AA; - 2%-5% of the Fund s NAV in money market instruments (including fixed income securities with a maturity period of not more than 365 days) and placement of deposits with financial institutions for liquidity purposes. In the event of adverse market conditions, the Fund will maintain its exposure in the Target Fund at 95% of the Fund s NAV. As such, there is no temporary defensive measure for the Fund and as a result, the Fund will be following the temporary defensive measure adopted by the Investment Manager of the Target Fund. Distribution Policy Benchmark The Fund intends to distribute income, if any, on an annual basis. The MGF-GRF mainly invest in equities and equity related investment company involved in three sectors which are gold mines, precious metal and material excluding gold and energy companies. Therefore the benchmark for the MIGRF is the composite benchmark comprising MSCI World Energy (1/3), MSCI World Materials (1/3) and FTSE Gold Mines (1/3). Information on MSCI World Energy, MSCI World Materials and FTSE Gold Mines can be obtained from Bloomberg. Alternatively, the composite benchmark can be obtained from the Manager. Note: The risk profile of the Fund is different from the risk profile of the benchmark. Permitted Investments and Investment Restrictions and Limits This Fund may invest in units of the MGF-GRF or such other collective investment schemes having a similar objective, liquid assets consisting of money market instruments (including fixed income securities with a maturity period of not more than 365 days) and deposits with any financial institutions and any other forms of investments as may be permitted by the SC from time to time. This Fund is feeder fund that must not invest in a) a fund-of-funds; b) a feeder fund; and c) any sub-fund of an umbrella scheme which is a fund-of-funds or a feeder fund. 21