PRODUCT HIGHLIGHTS SHEET. for. Affin Hwang Aiiman Select Income Fund

Transcription

1 PRODUCT HIGHLIGHTS SHEET for Affin Hwang Aiiman Select Income 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 Affin Hwang Asset Management Berhad (formerly known as Hwang Investment 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 Affin Hwang Aiiman Select Income Fund ( the Fund ) and a copy of this Product Highlights Sheet has been lodged with the Securities Commission Malaysia. The authorisation of the Fund and lodgement of this Product Highlights Sheet 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 Product Highlights Sheet. The Securities Commission Malaysia is not liable for any non-disclosure on the part of the Affin Hwang Asset Management Berhad (formerly known as Hwang Investment Management Berhad) responsible for the 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 Fund. Investors are advised to request, read and understand the Prospectus of the Fund before deciding to invest. 1. What is this product about? PRODUCT HIGHLIGHTS SHEET AFFIN HWANG AIIMAN SELECT INCOME FUND BRIEF INFORMATION ON THE PRODUCT This is a Shariah-compliant mixed asset (conservative) income fund, issued and managed in-house by the Manager. The Fund seeks to provide investors with regular income stream through Shariah-compliant investments. 2. Who is this product suitable for? PRODUCT SUITABILITY This Fund is suitable for investors who:- expect to receive regular income distribution; have a moderate risk appetite; expect incidental growth in capital; and want an investment that complies with Shariah requirements. 3. What am I investing in? Launch Date 1 March 2013 KEY PRODUCT FEATURES Tenure Investment Strategy The Fund is an open-ended fund which means there is no maturity date and may only be terminated in accordance with the terms of the Prospectus and the provisions of the Deed. The Fund will invest in a diversified portfolio of Sukuk, Shariah-compliant equities and Islamic money market instruments. The Fund s investments in Sukuk would consist of Malaysian and foreign-issued Sukuks whether issued by government or companies. In addition, the Fund will invest in equities with the anticipation to gain income from dividends. 2

3 Asset Allocation The Fund asset allocation range is as follows:- Asset Class % of the Fund s NAV Sukuk and Islamic Money Market Instruments Shariah-compliant equities Minimum 60% to a maximum 100% of the Fund s NAV Maximum 40% of the Fund s NAV Cash and Shariah-compliant deposits with financial institutions The remaining balance of the Fund s NAV Performance Benchmark The benchmark will be a combination of the current Maybank 12-month Maybank General Investment Account (GIA) weighing at 70% and FTSE Bursa Malaysia EMAS Shariah Index performance (FBMSHA) weighing at 30%.* Distribution Policy Minimum Initial Investment * Minimum Additional Investment* Minimum Units Held* *As the Fund is a mixed asset fund, the Manager has used a weighted benchmark to enable Unit Holders to evaluate the performance of the Fund against what Unit Holders would have earned if they placed 70% of moneys in Islamic fixed deposit (equivalent to the 12-month Maybank GIA) and 30% in Shariah-compliant local equities (as reflected by the FTSE Bursa Malaysia EMAS Shariah Index). Under normal market conditions, the ratio of the Fund s asset allocation between fixed income instruments and equities is expected to be 70 to 30. Regardless, the risk profile of the Fund is higher than the benchmark. Please note that the capital and returns of the Fund are not guaranteed. The Fund will distribute income on a semi-annual basis (subject to income availability), after the end of its first financial year. RM1,000 RM100 2,000 Units Note: Please refer to the Fund s Prospectus on further details of the Fund. 4. Who am I investing with? Relevant parties information: The Manager Manager Delegate (Fund Management) Manager s Delegate (Fund Valuation & Accounting Function) The Trustee Affin Hwang Asset Management Berhad ( T) (formerly known as Hwang Investment Management Berhad) Asian Islamic Investment Management Sdn. Bhd. ( T) (AIIMAN) (a member of Affin Holdings Berhad) HSBC (Malaysia) Trustee Berhad HSBC (Malaysia) Trustee Berhad * subject to change at the Manager s discretion 3

4 Trustee s Delegate (Custody Services) Shariah Adviser Tax Adviser Auditor/Reporting Accountants Solicitor HSBC (Malaysia) Trustee Berhad Amanie Advisors Sdn. Bhd. Deloitte KassimChan Tax Services Sdn. Bhd. PricewaterhouseCoopers Messrs. Naqiz & Partners 5. What are the possible outcomes of my investment? Being a mixed asset fund that invests in a diversified portfolio of Sukuks, Shariah-compliant equities and Islamic money market instruments, the performance of this Fund would to a great extent be linked to the price movements of local and global Sukuk and Shariah-compliant equity markets. This means that if the Sukuks and Shariah equities that are investable by the Fund performs well, the Fund may reflect similar performance and likewise. Also, the Fund s performance will rely on the fund managers expertise in managing the Fund to deliver superior performance to its benchmark. Investments in these Sukuks are expected to provide profit at intervals which are predetermined. These profits will then be distributed to Unit Holders in the form of income. Investments in dividend yielding Shariah-compliant equities are expected to enhance income and returns to the Fund. The asset allocation decision between Sukuk and Shariah-compliant equity is decided after considering the Sukuk and equity market outlooks over the medium to long-term horizon. Due to investments in equities, the Manager expects the Fund to also yield incidental growth in capital. Please note that the capital and returns of the Fund are not guaranteed. KEY RISKS 6. What are the key risks associated with this product? General risks Fund management risk The performance of a unit trust fund depends on the experience, expertise and ability of the investment manager to generate returns. Lack of any of the above mentioned may adversely affect the performance of the Fund. Inflation risk The risk of loss in the purchasing power of your contribution due to the general increase of comnsumer prices. Loan financing risk If you intend to purchase units of this Fund by means of borrowed/ financed monies and pledging those units as collateral for the borrowed/ financed monies, you should be aware that if the price of the Units falls below the borrowed/ financed amount, the lender/financier may require you to provide additional forms of collateral/units. Risk of non-compliance The establishment of this Fund follows rules set out in the Deed and the Guidelines. There is a risk that the Manager may not observe the rules whether intentionally or through inadvertence. Operational risk This risk refers to the possibility of a breakdown in the Manager s internal controls and policies. The breakdown may be a result of human error, system failure or may be fraud where employees of the Manager collude with one another. Note: Please refer to section 4.1 of the Fund s Prospectus on further detail of each risk. Specific Risks Credit/default risk This risk concerns the issuers of Sukuks and Islamic money market instruments. The risk arises when an issuer is unable to service any coupon payments or pay the principal amount upon maturity. 4

5 Counterparty risk The risk arises when an issuer is unable to service any coupon payments or pay the principal amount upon maturity. Interest rate risk Risk related to the Sukuks where prices may move due to the change in interest rates. Equity investment risk The buying and selling of equities carry a number of risks. The most important being the volatility of the capital markets on which those securities are traded and the general insolvency risk associated with the issuers of equities. The value of an equity investment depends on its earnings potential, sound management, treatment of minority shareholders, as well as a myriad of other factors. Failure to achieve the expected earnings would result in declining investment value which in turn affects the performance of the Fund. Liquidity risk Risk related to an investment that cannot be sold due to unavailability of buyer or when it is thinly traded Currency Risk Whilst the Fund is denominated in RM, investments in countries other than Malaysia will cause the Fund to be exposed to currency risks. Country Risk Since the investments for the Fund may consist of investments issued in various countries in addition to Malaysia, the foreign investment portion of the Fund may be affected by the risks specific to the countries in which it invests. Regulatory Risk The investments of the Fund will be exposed to changes in the laws and regulations in the countries the Fund is invested in. These regulatory changes pose a risk to the Fund as it may materially impact the investments of the Fund. Re-classification of Shariah Status Risk This risk refers to the risk that the currently held Shariahcompliant securities by the Fund may be reclassified to be Shariah non compliant. Note: Please refer to section 4.2 of the Fund s Prospectus on further detail of each risk. It is important to note that events affecting the investments cannot always be foreseen. Therefore, it is not always possible to protect investments against all risks. The various asset classes generally exhibit different levels of risk. The investments of the Fund carry risks and you are recommended to read the whole Prospectus to assess the risks of the Fund. If necessary, you should consult your professional adviser(s) for a better understanding of the risks. 7. What are the fees and charges involved? FEES & CHARGES There are fees and charges involved and you are advised to consider them before contributing to the Fund. What will I be charged by the Manager? Sales Charge Repurchase Charge Distributors Institutional Unit Trust Advisers Internal Distribution Channel of the Manager Unit Trust Consultants ** Investors may negotiate for a lower Sales Charge. Not applicable Maximum Sales Charge on the NAV per unit of the Fund ** 3.00% 5

6 Switching Fee Transfer Fee Not applicable RM5.00 per transfer What are the key ongoing fees charged to the Fund? Management Fee Up to 1.20% of the NAV of the Fund per annum Trustee Fee Up to 0.08% of the NAV of the Fund per annum, subject to a minimum of RM 18,000 per annum (excluding foreign custody fees and charges) 8. How often are valuations available? VALUATIONS AND EXITING FROM INVESTMENT The Fund will be valued on every Business Day and you may obtain NAV and prices of the Fund from our website at our customer service via our toll free number or to customercare@affinhwangam.com. 9. How can I exit from this investment and what are the risks and costs involved? You may request to redeem your investments in the Fund at any point in time by completing the repurchase application form and returning it to the Manager on any Business Day between 9.00 a.m. and 3.30 p.m. Payments will be made to you within 10 days from the day the repurchase request is received by the Manager and provided that all documentations are completed and verifiable. CONTACT INFORMATION 10. Who should I contact for further information or to lodge a complaint? 1. For internal dispute resolution, you may contact our customer service personnel: (a) via phone to : (b) via fax to : (c) via toll free no. : (d) via to : customercare@affinhwangam.com (e) via letter : Affin Hwang Asset Management Berhad Suite 11-01, 11th Floor Menara Keck Seng 203, Jalan Bukit Bintang Kuala Lumpur Complaints should be made in writing with the following information: (a) particulars of the complainant which include name, correspondence address, contact number, address (if any) and other relevant information; (b) circumstances of the non-compliance or improper conduct; (c) parties alleged to be involved in the improper conduct; and (d) other supporting documentary evidence (if any). 2. 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 : info@sidrec.com.my (d) via letter to : Securities Industry Dispute Resolution Center (SIDREC) Unit A-9-1 Level 9, Tower A Menara UOA Bangsar 6

7 No. 5, Jalan Bangsar Utama Kuala Lumpur 3. You can also direct your complaint to the SC even if you have initiated a dispute resolution process with SIDREC. To make a complaint, please contact the SC s 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 APPENDIX : GLOSSARY Bursa Malaysia Business Day Deed(s) the Fund Guidelines the Manager Prospectus Means the stock exchange operated by Bursa Malaysia Securities Berhad. Means a day on which the Bursa Malaysia is open for trading and this information can be obtained from the Bursa Malaysia s website at Deed dated 24 April 2012 and supplemental deed dated 27 June 2014 relating to the Fund entered into between the Manager and the Trustee. Refers to Affin Hwang Aiiman Select Income Fund Means the Guidelines on Unit Trust Funds issued by the SC and as may be amended from time to time. Refers to Affin Hwang Asset Management Berhad ( T) (formerly known as Hwang Investment Management Berhad). Means the prospectus for the Affin Hwang Aiiman Select Income Fund. Net Asset Value or NAV NAV per Unit Repurchase Charge RM SC Sales Charge Means the value of all the Fund s assets less the value of all the Fund s liabilities 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 the trustee fee for the relevant day. Means the Net Asset Value of the Fund at a particular valuation point divided by the total number of Units in Circulation at that point. Means a fee imposed pursuant to a request for repurchase of Units of the Fund. Means Ringgit Malaysia, the lawful currency of Malaysia. Means the Securities Commission of Malaysia established under the Securities Commission Act Means a fee imposed pursuant to an application for Units of the Fund. 7

8 Shariah Shariah Adviser or Amanie Shariah requirements Sukuk Unit or Units Units in Circulation Unit Holder(s) Means Islamic law comprising the whole body of rulings pertaining to human conducts derived from the primary and secondary sources of the Shariah. The primary sources are the Quran, the Sunnah, Ijma and Qiyas while the secondary ones are those established sources such as Maslahah, Istihsan, Istishab, Uruf and Sadd Zara ie. Refers to Amanie Advisors Sdn Bhd. Means a phrase or expression which generally means making sure that any human conduct must not involve any prohibition 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 as required by the Shariah for that element. Means a document or certificate, documenting the undivided pro-rated ownership of underlying assets. The sak (singular of sukuk) is freely traded at par, premium or discount. In Malaysia, the term sukuk is used for fixed income securities which comply with the Shariah requirements. It is normally used together with the Shariah contracts applied in the structure, such as bai bithaman ajil, murabahah and istisna for underlying transactions based on indebtedness or musyarakah and mudharabah for underlying transactions based on partnership. Means a measurement of the right or interest of a Unit Holder in the Fund and a Unit (including a fraction of a Unit) of the Fund. Means Units created and fully paid for and which has not been cancelled. It is the total number of Units issued at a particular valuation point. Means the person for the time being who, in full compliance to the relevant laws and under the Deed, is registered pursuant to the Deed as a holder of Units of the Fund, including a jointholder. 8