RESPONSIBILITY STATEMENT

Transcription

1 RESPONSIBILITY STATEMENT This Prospectus has been reviewed and approved by the Directors of Amanah Mutual 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 Prospectus false or misleading. STATEMENTS OF DISCLAIMER The Securities Commission has approved the issue of, offer for subscription or purchase, or issue an invitation to subscribe for or purchase units of the unit trust fund and a copy of this Prospectus has been registered with the Securities Commission. The approval, and registration of this Prospectus, should not be taken to indicate that the Securities Commission recommends the Fund or assumes responsibility for the correctness of any statement made or opinion or report expressed in this Prospectus. The Securities Commission is not liable for any non-disclosure on the part of the management company responsible for the Fund and takes no responsibility for the contents in this Prospectus. The Securities Commission makes no representation on the accuracy or completeness of this Prospectus, and expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of its contents. INVESTORS SHOULD RELY ON THEIR OWN EVALUATION TO ASSESS THE MERITS AND RISKS OF THE INVESTMENT. IN CONSIDERING THE INVESTMENT, INVESTORS WHO ARE IN DOUBT ON THE ACTION TO BE TAKEN SHOULD CONSULT PROFESSIONAL ADVISORS IMMEDIATELY. No units will be issued or sold based on this Prospectus after the Initial Offer Period. Investors are advised to note that recourse for false or misleading statements or acts made in connection with the Prospectus is directly available through sections 248, 249 and 357 of the Capital Markets and Services Act AMB Dana Aqeel Capital Protected has been certified as being Shariah compliant by the Shariah Advisors appointed for the Fund.

2 This page is intentionally left blank.

3 PREFACE Dear Prospective Investors of AMB Dana Aqeel Capital Protected* Thank you for considering an investment with AMB Dana Aqeel (Capital Protected) ( AMBDAQ-CP or Fund ). AMBDAQ-CP is a close-ended fund with a three year finite life with the objective of protecting the initial capital of the Fund at the Maturity Date through investments principally in fixed income securities that are permissible under Shariah Principles, predominantly in locally issued Sukuk whilst seeking potential returns over the tenure of the Fund. The Fund will seek to achieve its investment objectives by investing at least 85% of the Fund s NAV into fixed income securities, predominantly in locally issued Sukuk with a minimum credit rating of AA3 by RAM, MARC or equivalent to provide the capital protection at maturity. The remaining of the Fund s NAV will be invested in diversified portfolio of quality Shariah compliant equities to provide potential returns to the Fund. We advise potential investors to refer to Section 1.4 on page 13 for the specific terms of the protection of the capital invested in this Fund. Being a close-ended fund, AMBDAQ-CP will mature on the third anniversary from the commencement date. The Fund shall be terminated on the Maturity Date and all Units held by the Unit Holders will be redeemed. The net proceeds will be paid to Unit Holders within 2 months of the Maturity Date. As with any investment, there are risks involved in investing in our Fund. The risks are market risk, credit issuer/default risk, interest rate risk/capital loss risk, liquidity risk, non-shariah compliance risk and equity investment risk. Further information on the risk factors can be found in Section 2.1 on page 15 and page 16 of this Prospectus. In view of the above, investors who would be best suited to invest in the Fund include investors who seek capital protection, with low risk tolerance and medium-term investment horizon. AMBDAQ-CP imposes an initial service charge of 1.80% of the initial offer price per Unit and repurchase charge** directly to the Unit Holder. The repurchase charge would only be imposed on requests for repurchase after the Initial Offer Period and before the Fund s Maturity Date, which repurchase will be based on the prevailing NAV. Note that the repurchase charge will be on a tiered basis and will be reduced accordingly. No charge is imposed when Units are redeemed at the Maturity Date. Other costs include annual management fee of 1.00% and annual trustee fee of 0.08% or minimum of RM18,000 per annum. Details of all fees and charges are disclosed in Chapter 5 Fees, Charges and Expenses on page 28 of the Prospectus. Should you be interested to invest, Units of the Fund can be purchased and/or repurchased at our office at 34 th floor, Menara PNB, Jalan Tun Razak, Kuala Lumpur or any Maybank Distribution Branch nearest to you, as Maybank is AMB s main sales distribution channel. In addition, you could also purchase and/or repurchase Units at ASNB branches or any other IUTA branches appointed by the Manager from time to time nationwide. Corporate details of our office are on page 8, while information on our distributors is available on page 70 of this Prospectus. We recommend that you take your time to study this Prospectus carefully before making your investment decision. Should you require further clarification, feel free to call our Client Services at You are also very welcome to browse our company website, for more information. *Investors are advised that unlike a guaranteed fund, this capital protected fund is protected by investments predominantly in Sukuk which is issued locally and not by a guarantee. Consequently the return of capital is SUBJECT TO the credit/default risk of the issuers of the fixed income securities.

4 As always, thanking you for allowing us to be of service to you. Yours faithfully, For and on behalf of Amanah Mutual Berhad binti Abdul Halim (Sheila Halim) Chief Executive Officer **`Repurchase Charge could also be known as redemption/exit/withdrawal/penalty charge or any other terms which denotes the meaning of cost imposed to the unit holder upon request to take out their investment in a close-ended fund, prior to its maturity.

5 Contents Glossary of Terms/Abbreviations... 4 Corporate Information Summary of Key Features of the Fund General Information on AMBDAQ-CP Fees and Charges Information on Transactions Specific Terms of the Capital Protection*. Other Information 2 Risk Factors Risks of Investing in Unit Trusts Detailed Information on the Fund Fund s Profile Investment Philosophy Investment Objective. 17 Approved Fund Size. 17 Investors Profile.. 17 Benefits for Investors. 17 Specific Benefits of Investing in AMBDAQ-CP Potential Risks Associated with AMBDAQ-CP Control of Risk Temporary Defensive Positions... Investment Policy/Approach Investment Strategy / Investment Mechanism Asset Allocation Benchmark. 20 Maturity of the Fund.. 20 Level of Protection Capital Protection* Mechanism... Steps to be Taken in the event of a Rating Downgrade... Liquidation Mechanism of the Underlying Investments... Permitted Investments for AMBDAQ-CP Investment Restrictions 23 Exceptions and Exclusions Applicable to the Fund Investment Strategy For The Six Months Before Maturity Investment Process of the Fund Investment Process of the Fund Bases of Valuation of Investments Policy on Gearing and Liquid Assets 27 5 Fees, Charges and Expenses Charges Sales Charge Repurchase Charge Switching Charge Transfer Charge Fees Management Fee.. 29 * Investors are advised that unlike a guaranteed fund, this capital protected fund is protected by investments predominantly in Sukuk which is issued locally and not by a guarantee. Consequently the return of capital is SUBJECT TO the credit/default risk of the issuers of the fixed income securities AMB Client Services :

6 5.2.2 Trustee Fee Fund s Expenses Others Policy on Brokerage Rebates and Soft Commissions Portfolio Turnover Ratio (PTR). Management Expense Ratio (MER) Transaction Information Single Pricing Policy Initial Offer Period Valuation of Units Error in Pricing Purchasing and Repurchasing of Units Determination of Prices and Charges Minimum Balance of Investment Cooling-Off Right How to Purchase Units of the Fund How to Repurchase Units of the Fund Where to Purchase, Repurchase and Transfer.. Transfer of Units Switching Facility.. Distribution Payment. Policy on Unclaimed Monies. 7 Communications with Unit Holders Customer Information Service Regular Reports on your Investment Register of Unit Holders Policies Adopted by AMB to Avoid Money Laundering Activities Material Contracts 40 8 Rights and Liabilities of a Unit Holder Rights of a Unit Holder Liabilities of a Unit Holder The Management and Administration of the Fund Corporate Profile of the Manager Past Performance of the Manager Profile of the Board of Directors of the Manager Company Secretary Senior Compliance Officer Profile of the Key Management Staff of the Manager The Investment Committee of the Fund The Shariah Committee Roles and Responsibilities of the Shariah Committee Members Shariah Committee Members Profile of the External Investment Manager CIMB-Principal Asset Management Berhad Duties of the External Investment Manager Designated Investment Manager of the Fund Conflict of Interest Manager s Disclosure of Material Litigation and Arbitration The Trustee of the Fund Profile of AmanahRaya Trustees Berhad Trustee s Responsibility Statement Trustee s Disclosure of Material Litigation and Arbitration AMB Client Services :

7 10.4 Duties and Obligations of the Trustee Retirement, Removal or Replacement of the Trustee Powers of the Trustee to Remove or Replace the Manager Salient Terms of Deed Exemptions Granted by the SC Related Party Transactions/Conflict of Interest Tax Advisor s Letter Consents Documents Available for Inspection List of Distributors Offices.. 70 AMB Client Services :

8 Glossary of Terms / Abbreviations The following words or abbreviations shall have the following meanings in the current Prospectus unless otherwise stated: Act or CMSA AMB or Manager AMB Family of Fund ASNB AMBDAQ-CP Bursa Malaysia Business Day(s) BAFIA Commencement Date Cooling-off Period Cooling-off Right Deed Distribution Branch External Investment Manager or EIM FIMM The Capital Markets and Services Act, 2007 including all amendments thereto and all regulations rules and guidelines issued in connection therewith. Amanah Mutual Berhad (AMB) ( U). All Fund under the management of the Manager. Amanah Saham Nasional Berhad (47457-V), the holding company of the Manager. AMB Dana Aqeel Capital Protected* Bursa Malaysia Securities Berhad ( W). A day on which the Bursa Malaysia is open for trading in securities. Banking and Financial Institution Act 1989, including all amendments thereto and all regulations, rules and guidelines issued in connection therewith. The date on which investments in the Fund will first be made and the date which is the seventh (7 th ) Business Day immediately following the end of the IOP. The cooling-off period for the Fund is 6 Business Days commencing from the date of purchase i.e. the date on which the Manager receives the application form and the investment amount. The right of a qualified Unit Holder to change his mind and cancel an investment in the Fund within the Cooling-off Period commencing from the date of his first purchase of in any fund in the AMB Family of Funds. The Deed including any supplementary Deed between the Manager and the Trustee for AMBDAQ-CP. Any branch, outlet or any other premises of the IUTA used as distribution channel for the purpose of marketing and distribution of Units. CIMB-Principal Asset Management Berhad (CIMB-Principal)( K) Federation of Investment Managers Malaysia, formerly known as the Federation of Malaysian Unit Trust Managers. * Investors are advised that unlike a guaranteed fund, this capital protected fund is protected by investments predominantly in Sukuk which is issued locally and not by a guarantee. Consequently the return of capital is SUBJECT TO the credit/default risk of the issuers of the fixed income securities. AMB Client Services :

9 Forward Pricing FBM Emas Shariah Index Fund GIA GII Guidelines IOP Investment Committee Investment Management Agreement IUTA or Distributor LPD The price of a unit that is the NAV per Unit calculated at the next valuation point after an instruction or a request is received. FTSE Bursa Malaysia Emas Shariah Index. AMBDAQ-CP General Investment Account Government Investment Issues The Guidelines on Unit Trust Fund and any other relevant guidelines on Unit Trust Fund issued by the SC as amended, modified or varied by any notes, circular and guidelines issued from time to time by the SC. The Initial Offer Period of 45 days commencing from the date of this Prospectus or the period within which three hundred (300) million Units have been fully subscribed, whichever is earlier. The Investment Committee of the Fund primarily responsible for formulating, implementing and monitoring the investment management strategies of the Fund in accordance with the respective investment objectives of the Fund. The agreement between AMB and the EIM setting out the terms and conditions upon which the EIM has been appointed and has agreed to act as the EIM of the Fund. Any Institutional Unit Trust Agent appointed by the Manager, which is an institution, a corporation or an organisation that is registered with FIMM in accordance with their guidelines to distribute the Units. October 31, 2009, being the latest practicable date for the purposes of ascertaining the information contained in this Prospectus. Management Expense Ratio or MER The ratio of the sum of the fees and the recovered expenses of the Fund to the average value of the Fund calculated on a daily basis, i.e.: Fees of the Fund + recovered expenses of the Fund Average value of the Fund calculated on a daily basis x 100 Where: Fees = All ongoing fees deducted/deductible directly from the Fund in respect of the period covered by the management expense ratio expressed, as a fixed amount calculated on a daily basis. This would include the annual management fee, the annual trustee fee and any other fees deducted/deductible direct from the Fund; Recovered = All expenses recovered from /charged to the Fund as a result of the expenses incurred by the operation of the Fund, expressed as a fixed amount. This should not include expenses that would otherwise be incurred by an individual investor (e.g. brokerage, taxes and levies);and AMB Client Services :

10 Average Value of The Fund = The NAV of the Fund, including the net income value of the Fund less expenses on an accrued basis, in respect of the period covered by the management expense ratio, calculated on a daily basis. MARC Maturity Date Maybank MGS Net Asset Value (NAV) of the Fund Net Asset Value (NAV) per Unit PNB Portfolio Turnover Ratio or PTR Malaysia Rating Corporation Berhad ( V). The Maturity Date of the Fund, being the third anniversary from the Commencement Date as stated in the Deed. Malayan Banking Berhad (3813-K). Malaysia Government Securities. 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 management fee and trustee fee for the relevant day. The NAV of the Fund divided by the number of Units in Circulation, at the valuation point. Permodalan Nasional Berhad (38218-X), the ultimate holding company of the Manager. The ratio of the average sum of the acquisitions and disposals of the Fund for the year to the average value of the Fund for the year calculated on a daily basis, i.e.: [Total acquisitions of the Fund for the year + Total disposals of the Fund Average value of the Fund for the year] / 2 for the year calculated on a daily basis Purchasing of Units RAM RM Repurchasing of Units SC Shariah Committee Members Shariah Principles The buying of Units by Unit Holders in the Fund is calculated at the initial offer price per Unit. Rating Agency of Malaysia Holdings Berhad ( U). Ringgit Malaysia. The repurchasing of Units by Unit Holders in the Fund is calculated at NAV per Unit. Securities Commission. The Committee appointed by the Manager for AMBDAQ-CP and other Shariah funds in the AMB Family of Funds. Shariah principles are based in Islamic law, originating from the Quran as well as practices and explanations rendered by the Prophet Muhammad (PBUH), Ijma, Qiyas and Ijtihad of ulama (personal reasoning of Islamic jurists). AMB Client Services :

11 Trustee Unit Holder(s) Units Units in Circulation or UIC Valuation Point AmanahRaya Trustees Berhad (ART) ( T) as trustee for AMBDAQ-CP. A person or persons registered as holder(s) of a Unit or Units of the Fund and whose name appears in the Register of Unit Holders. Units of the Fund. Units of the Fund created and fully paid. The valuation of NAV of the Fund is conducted on each Business Day at the close of Bursa Malaysia. Definitions or meanings of words not otherwise expressed above shall follow the meaning or interpretation as ascribed in the Guidelines issued by the SC and any other relevant laws governing unit trust Fund. AMB Client Services :

12 Corporate Information MANAGER Amanah Mutual Berhad ( U) Registered Office 4th Floor, Balai PNB 201-A, Jalan Tun Razak Kuala Lumpur Telephone : Facsimile : Principal Office 34th Floor, Menara PNB 201-A, Jalan Tun Razak Kuala Lumpur Telephone : Facsimile : / AMB Client Services : ambcare@pnb.com.my Website : BOARD OF DIRECTORS Tun Ahmad Sarji bin Abdul Hamid Chairman (Non-Executive/Non-Independent Director) Tan Sri Dato Sri Hamad Kama Piah bin Che Othman (Non-Executive/Non-Independent Director) Tan Sri Dato' Dr. Wan Mohd. Zahid bin Mohd. Noordin (Non-Executive/Independent Director) Tan Sri Dato' Md. Desa bin Pachi (Non-Executive/Independent Director) Encik Idris bin Kechot (Non-Executive/Non-Independent Director) INVESTMENT COMMITTEE MEMBERS Tun Ahmad Sarji bin Abdul Hamid Chairman (Non-Independent member) Tan Sri Dato' Sri Hamad Kama Piah bin Che Othman (Non-Independent member) Tan Sri Dato' Dr. Wan Mohd. Zahid bin Mohd. Noordin (Independent member) Tan Sri Dato' Md. Desa bin Pachi (Independent member) SHARIAH COMMITTEE MEMBERS Dato Dr. Abdul Halim bin Ismail Chairman (Independent member) Datuk Dr. Syed Othman bin Syed Hussin Al Habshi (Independent member) Prof. Dato Dr. Abdul Monir bin Yaacob (Independent member) Prof. Dato Dr. Mahmood Zuhdi bin Hj Ab Majid (Independent member) AUDIT COMMITTEE OF PNB Tan Sri Dato' Dr. Wan Mohd. Zahid bin Mohd. Noordin Chairman (Independent member) Tan Sri Dato' Md Desa bin Pachi (Independent member) Tan Sri Datuk Amar Bujang bin Mohammed Bujang Mohammed Nor (Independent member) AMB Client Services :

13 COMPLIANCE COMMITTEE OF PNB Tan Sri Dato' Dr. Wan Mohd. Zahid bin Mohd. Noordin Chairman (Independent member) Tan Sri Dato' Sri Hamad Kama Piah bin Che Othman (Non-Independent member) Tan Sri Dato' Md. Desa bin Pachi (Independent member) Encik Paisol bin Ahmad (Non-Independent member) COMPANY SECRETARY Puan Adibah Khairiah binti Daud (MIA 13755) 4th Floor Balai PNB 201-A Jalan Tun Razak Kuala Lumpur EXTERNAL INVESTMENT MANAGER CIMB-Principal Asset Management Berhad ( K) Level 5 Menara Milenium 8 Jalan Damanlela Bukit Damansara Kuala Lumpur Telephone : Facsimile : Website : AUDITORS Messrs. Ernst & Young Chartered Accountants Level 23A Menara Milenium Jalan Damanlela Pusat Bandar Damansara Kuala Lumpur TAX ADVISOR TRUSTEE AmanahRaya Trustees Berhad ( T) Registered Office Address: Tingkat 11 Wisma AmanahRaya No. 2 Jalan Ampang Kuala Lumpur Telephone: (603) Website: Business Office Address Tingkat 2 Wisma TAS No. 21 Jalan Melaka Kuala Lumpur Telephone : (603) Facsimile : (603) Website : PRINCIPAL BANKER Malayan Banking Berhad (3813-K) Kuala Lumpur Main Office 100 Jalan Tun Perak Kuala Lumpur SOLICITORS Messrs. Zainal Abidin & Co. Suite , 18th Floor Plaza Permata Jalan Kampar Off Jalan Tun Razak Kuala Lumpur FEDERATION OF INVESTMENT MANAGERS MALAYSIA (FIMM) (Formerly known as Federation of Malaysian Unit Trust Managers) th Floor PNB Damansara, 19 Lorong Dungun Damansara Heights Kuala Lumpur Telephone: Facsimile : Website : Ernst & Young Tax Consultants Sdn Bhd Level 23A Menara Milenium Jalan Damanlela Pusat Bandar Damansara Kuala Lumpur AMB Client Services :

14 1 Summary of Key Features of the Fund This section is only a summary of the salient information about the Fund. Investors should read and understand the whole Prospectus before making investment decisions. 1.1 General Information on AMBDAQ-CP Further details on page : Fund Category / Type Fixed Income Fund / Capital Protected* Fund Objective of the Fund Policies and Principal Investment Strategy Asset Allocation Benchmark Principal risks of investing in the Fund To protect the initial capital* of the Fund at the Maturity Date through investments principally in fixed income securities predominantly in Sukuk that are permissible under Shariah Principles whilst seeking potential returns over the tenure of the Fund. The Fund will invest at least 85% of the Fund s NAV into Shariah based fixed income securities, predominantly in locally issued Sukuk with a minimum credit rating of AA3 by RAM, MARC or equivalent to provide the capital protection* at maturity. The remaining of the Fund s NAV will be invested in diversified portfolio of quality Shariah compliant equities to provide potential returns to the Fund and cash equivalent instruments for liquidity purposes. Min 85% to max 98% in Shariah fixed income securities. Max 10% in equities. Min 2% in cash or cash equivalent instruments. 12-month GIA rates of commercial banks which is obtainable from the Bank Negara Malaysia s website. The principal risks of investing in the Fund includes market risk, credit issuer/default risk, interest rate risk/capital loss risk, liquidity risk, non-shariah compliance risk and equity investment risk External Investment Manager CIMB-Principal Asset Management Berhad (304078K) 49 Trustee AmanahRaya Trustees Berhad ( T) 52 Investor Profile The Fund is suitable for investors with the following profile: - Seeking low risk investments that are in accordance with Shariah Principles. Seeking a Fund which protects the initial capital* with potential to yield better return than the 12-month GIA rates of commercial banks. Medium term investment horizon of 3 years. 17 Distribution Policy There shall be no income distribution during the tenure of the Fund. Return to Unit Holders (if any), will be in the form of capital appreciation at the Maturity Date. * Investors are advised that unlike a guaranteed fund, this capital protected fund is protected by investments predominantly in Sukuk which is issued locally and not by a guarantee. Consequently the return of capital is SUBJECT TO the credit/default risk of the issuers of the fixed income securities. AMB Client Services :

15 Launch Date Commencement Date Tenure Maturity Date of the Fund March 9, 2010 The date on which investments in the Fund will first be made and the date which is the seventh (7 th ) Business Day immediately following the end of the IOP. Unit Holders may access our website or call our client services to find out the actual Commencement Date of the Fund. 3 years The third anniversary from the Commencement Date as stated in the Deed. The Fund shall be terminated on the Maturity Date and all Units held by the Unit Holders will be redeemed. Unit Holders may access our website or call our client services to find out the actual Maturity Date of the Fund. 20 Financial Year End April 30 Approved Fund Size Initial Offer Price Sales Charge during IOP Initial Offer Period Level of Protection for Investors 300 million Units. In the event the Fund is fully subscribed prior to the 45 days IOP, we may increase the approved fund size subject to the approval of the relevant authorities. RM 0.50 per Unit Up to 1.80% of initial offer price The IOP of 45 days commencing from the date of this Prospectus or the period within which three hundred (300) million Units have been fully subscribed, whichever is earlier. 100% of the capital invested (i.e. the initial offer price) Fees and Charges This table describes the fees and charges that you may directly incur when you purchase or repurchase Units of the Fund. (i) Sales Charge* during the IOP Direct Fees and Charges % (ii) Repurchase Charge** - Repurchase within 1 st year from the end of the IOP to the end of the 1 st year from the Commencement Date. - Repurchase within 2 nd year from the Commencement Date. - Repurchase within 3 rd year from the Commencement Date. - Repurchase at Maturity Date or early termination date. (iii) Transfer Charge Up to 1.80% of initial offer price per Unit 0.75% of NAV per Unit 0.50% of NAV per Unit 0.35% of NAV per Unit Nil RM25 per transaction (iv) Switching Charge Not applicable *The sales charge is negotiable. ** All repurchase charge shall be reimbursed to the Fund. AMB Client Services :

16 This table describes the fees and charges that you may indirectly incur when you invest in the Fund. Indirect Fees and Charges % (i) Annual Management Fee 1.00% per annum of the NAV of the Fund calculated on a daily basis. (The NAV is a gross NAV, before deducting management fee and trustee fee for the day). (ii) Annual Trustee Fee (iii) Other Annual Operating Expenses 0.08% per annum of the NAV of the Fund, calculated on a daily basis, subject to a minimum fee of RM18,000 per annum. (The NAV is a gross NAV, before deducting management fee and trustee fee for the day). the auditor s fees, tax agents fee and other relevant professional fees; the costs of printing & distribution of annual and interim reports. cost of modification of the Deed other than those for the benefits of the Manager and/or Trustee; and other notices to Unit Holders as well as expenses that are directly related and necessary for the administration of the Fund as set out in the Deed. These costs have been factored into the quoted NAV per Unit as they are related and necessary to the business of the Fund. There are fees and charges involved and investors are advised to consider the fees and charges before investing in the Fund. 1.3 Information on Transactions Minimum initial investment Minimum additional investment during the IOP Subsequent investment amount after IOP Purchasing of Units Repurchasing of Units Application for Units at the point of issue must be for a minimum of : Individual RM1,000 Non-Individual RM5,000 Application for additional Units during the IOP must be for a minimum of : Individual RM500 Non-Individual RM1,000 Not applicable as no new Units will be sold after the IOP. The investment amount payable by the Unit Holders for the purchase of a Unit is calculated at initial offer price per Unit. In addition to the investment amount, a sales charge will also be imposed on the Unit Holders. (please refer to section 5.1 & 6.6 on page 28 & 32 respectively for more details) There shall be no Repurchase of Units during the IOP. The repurchase amount payable to the Unit Holders for the repurchase of Unit is calculated at NAV per Unit subject to Repurchase Charge (if repurchase occurs prior to the Maturity Date). The NAV per Unit is computed on Forward Pricing basis and published daily in major newspapers (please refer to section 6.6 on page 33 for more details). AMB Client Services :

17 Repurchasing of Units (Continued) Cooling-off Period Cooling-off Right Repurchase Period Frequency of Repurchase Minimum Repurchase amount Minimum Holdings to Maintain Accounts Transfer Of Units Switching of Units The Manager has taken necessary procedures to ensure accuracy of information of pricing sent to Bernama and the respective newspapers. However, the Manager shall not be held liable for any error or omission in the pricing information published in the newspapers. ( please refer to section 7.1 on page 39 for more details) Within 6 Business Days commencing from the date of purchase, i.e. the date on which the Manager receives the application form and the investment amount. The Cooling-off Right is only given to a qualified Unit Holder who is investing in any fund in the AMB Family of Funds for the first time. (please refer to section 6.8 on page 33 for more details) The Manager will pay the repurchase proceeds to Unit Holders within 10 days upon receipt of the request to repurchase. There is no restriction on the frequency of repurchase. There is no minimum repurchase amount imposed on a Unit Holder. However, for partial repurchase, the minimum balance of Units remaining in the account must always be 1,000 Units. The minimum balance of Units remaining in the account must always be 1,000 Units. A Unit Holder may fully or partially transfer his Units in the Fund to another Unit Holder of the same, provided the transferee will hold the minimum of 1,000 Units and for partial transfers, the minimum balance of Units remaining in the transferor s account must always be 1,000 Units. An administrative fee of RM25 will be charged for each transfer. (please refer to section 6.12 on page 37 for more details) Switching is not permitted. Note: The Manager will ensure that the prices forwarded to the press for publication are accurate. However, the Manager shall not be held liable for any error in prices published in the press. Investors may contact any Distribution Branch to further confirm the Unit prices. 1.4 Specific Terms of the Capital Protection* The capital protection* only applies to investors who hold their investment until Maturity Date. The Manager does not guarantee the capital invested or the investment returns to Unit Holders as the Fund is still subject to investment risk. There may be a dilution of performance due to the capital protection* structure being in place, compared with conventional funds without capital protection*. You are advised that past performance of any other funds managed by the Manager is no indication whatsoever of the future performance and returns of the Fund. * Investors are advised that unlike a guaranteed fund, this capital protected fund is protected by investments predominantly in Sukuk which is issued locally and not by a guarantee. Consequently the return of capital is SUBJECT TO the credit/default risk of the issuers of the fixed income securities. AMB Client Services :

18 For attaining the best investment results from a capital protected* fund, Unit Holders would need to hold their investment until the maturity of the Fund. Any repurchase before the specified Maturity Date may not enjoy the full benefits of a capital protected* fund and such repurchase would be based on the NAV per Unit of the Fund less the Repurchase Charge. Should the redemptions take place, the benefits of capital protection* would no longer apply. 1.5 Other Information Deed Unit Holders may refer to the Deed of the Fund dated December 17, 2009 for more specific information of the Fund, which is available at the principal office of the Manager. Winding-up of the Fund The Manager has the option to request the Trustee to terminate the Fund and to wind-up the Fund if at the end of the IOP, the capital raised shall be less than RM50 million, being the Fund s viable size, and it is deemed uneconomical to proceed with the Fund. In such circumstances, the Manager shall return the amount invested which is at RM0.50 per Unit to the Unit Holders together with the sales charge incurred. *Investors are advised that unlike a guaranteed fund, this capital protected fund is protected by investments predominantly in Sukuk which is issued locally and not by a guarantee. Consequently the return of capital is SUBJECT TO the credit/default risk of the issuers of the fixed income securities. The above information is only a summary of the salient information about the Fund. You are advised to read and understand the contents of this Prospectus and if necessary, consult your professional advisor before making an investment decision. Unit prices may go down as well as up. For information concerning certain risk factors which should be considered by prospective investors, see Risk Factors commencing on page 15. There are fees and charges involved and investors are advised to consider the fees and charges before investing in the Fund. AMB Client Services :

19 2 Risk Factors 2.1 Risks of Investing in Unit Trusts All investments carry some form of risk. It is important to note that when you invest you should be prepared to accept a degree of risk, as most investments are affected by ever changing market conditions, some of which impact positively and some negatively. Therefore, no matter how experienced the fund manager may be, certain factors, which will affect the value of investments, may be beyond their control. So, the value of your investments may go down as well as up. One should consider the following when investing in a unit trust fund: Stock or Bond Market Risk For a unit trust that has stocks or bonds in its portfolio, fluctuations in the market performance due to factors such as fluctuation in interest rates, changes in economic climate, political and social environment that will affect the stock or bond market as a whole, will also affect the value of investment either in a positive or negative way. Individual Stock Risk The performance of the fund that invests in stocks is affected by every individual stock that the said fund has invested in. The volatility of prices in each stock will affect the fund s value daily. Non-Compliance Risk Any disruption to the operations of a fund due to non adherence to legislation, Guidelines governing the fund, investment mandate and operations of a fund as stated in the deed, may potentially lead to a reduced income or even causes losses to unit holders. This non-compliance with the Act, the Guidelines, deed and internal controls and policies may affect your money. Inflation Risk Ideally the purpose of any investment is to secure returns that are greater than the inflation rate. While the fund will constantly seek to maximise returns and exceed inflation rate, it may occasionally experience losses, which result in returns that will not keep pace with inflation in the short run. Liquidity Risk The various securities that are purchased by the fund may encounter liquidity risk. Liquidity risk relates to the fund s ability to quickly and easily trade, at a reasonable price, in and out of positions. Should the fund comprise a security that has become temporarily or permanently illiquid or difficult to sell, the fund manager may need to sell the security at a discount to its fair value, which eventually affects the fund s value. Management Risk Performance of the fund depends on the experience, expertise, knowledge and investment techniques of the fund manager. Poor management of the fund can cause considerable losses to the fund, which in turn may affect the capital invested. Institutional Risk The risk that the institution, which operates the fund, will collapse. Returns Not Guaranteed As a result of market risks, the manager is unable to guarantee the distribution payout to unit holders or the investment returns of the fund. However, the manager will take reasonable steps to ensure that this risk is minimized through a prudent investment approach, which is centred on fundamental stocks and market analysis. AMB Client Services :

20 Loan Financing Risk Investors who take end-financing loans to purchase units in a unit trust fund must be prepared to accept gearing risks as the prices of the units can go down as well as up. The investor may be required to top up the difference in the event the unit price goes below the margin of advance. Interest Rate Risk Fixed income securities and bonds are particularly sensitive to movements in interest rates. When interest rates rise, the value of fixed income securities and bond prices fall and vice versa, thus affecting the net asset value of the fund. The general interest rate of the country may affect the value of the investment even if the fund (e.g. shariah fund) does not invest in interest bearing instruments. Credit/Default Risk Credit risk refers to the possibility that the issuer of a security may not be able to make interest payments or repay the principal in a timely manner. This will translate to losses that will reduce the value of the fund. Currency Risk Currency risk is also known as foreign exchange risk. It is risk associated with investments that are denominated in foreign currencies. When the foreign currencies fluctuate in an unfavorable movement against Ringgit Malaysia, the investments will face currency losses in addition to the capital gains/losses. This willl lead to a lower net asset value of the fund. Country Risk The foreign investments of the fund may be affected by risks specific to the country, which it invests in. Such risks include changes in a country s economic fundamentals, social and political stability, currency movements and foreign policies etc. These may have an adverse impact on the prices of securities of listed companies. Force Majeure Risk The risk of exposure to force majeure events, where events are not within the control of manager. This includes terrorist attacks, politically instability, natural disasters and spread of disease where risks are generally unforeseen and may have direct impact on the business. Please refer to Chapter 3 : Detailed Information on the Fund for information on Fund specific risks and risk management. AMB Client Services :

21 3 Detailed Information on the Fund 3.1 Fund s Profile AMB DANA AQEEL CAPITAL PROTECTED* Category of Fund Type of Fund Fixed Income Fund Capital Protected* Fund 3.2 Investment Philosophy AMBDAQ-CP is a low-risk fund with a three (3) year tenure to maturity that complies with Shariah Principles. The Fund will primarily invest in high quality locally issued Sukuk to provide capital protection* until maturity while the remainder is invested in Shariah-compliant equities to provide potential capital gain to the Fund and cash equivalent instruments for liquidity purposes. The Unit price will change to reflect movements in the value of the Fund's assets. 3.3 Investment Objective To protect the initial capital* of the Fund at the Maturity Date through investments principally in fixed income securities predominantly in Sukuk that are permissible under Shariah Principles whilst seeking potential returns over the tenure of the Fund. Any material change to the investment objective of the Fund would require Unit Holders approval. 3.4 Approved Fund Size The approved Fund size for AMBDAQ-CP is 300 million Units. In the event the Fund is fully subscribed prior to the 45 days IOP, we may increase the approved fund size subject to the approval of the relevant authorities. 3.5 Investors Profile The Fund is suitable for investors with the following profile: - Seeking low risk investments that are in accordance with Shariah Principles. Seeking a Fund which protects the initial capital* with potential to yield better return than the 12-month GIA rates of commercial banks. Medium term investment horizon of 3 years. 3.6 Benefits for Investors AMBDAQ-CP is suitable for investors who seek capital protection* upon maturity from a well-diversified portfolio of fixed income securities that conform to the Shariah Principles. AMBDAQ-CP is an avenue for investors to invest in a well-diversified Islamic debt securities portfolio without huge capital outlay. 3.7 Specific Benefits of Investing in AMBDAQ-CP Strict Adherence to the Shariah Principles AMBDAQ-CP has been specially designed with adherence to the Shariah Principles. The Shariah Committee Members of the Fund comprise Islamic scholars who monitor the investment activities of the Fund. Investment Through Diversification AMBDAQ-CP manages and aims to minimise your risks by investing in a diversified range of Shariah compliant fixed income securities. * Investors are advised that unlike a guaranteed fund, this capital protected fund is protected by investments predominantly in Sukuk which is issued locally and not by a guarantee. Consequently the return of capital is SUBJECT TO the credit/default risk of the issuers of the fixed income securities. AMB Client Services :

22 Affordability During the IOP, individual investors can invest just RM 1,000 as a minimum initial investment and subsequent investments can be made at a minimum of RM500. For non-individual investor, a minimum initial investment of RM5,000 is required and subsequent investments can be made at a minimum of RM1,000. Accessibility Investors can easily access any Distribution Branch to perform any enquiry or transaction. 3.8 Potential Risks Associated with AMBDAQ-CP While attempts are being made to reduce risks encountered by the portfolio, investors should be advised that the following risks are inherent in such investments of the Fund: - Market Risk This is the risk that affects the entire market as a whole. It is possible that, at times, the entire market may decline, and no matter how well diversified the portfolio is, the value of the portfolio will decline as well. Credit Issuer/Default Risk Fixed income securities are subject to credit/issuer/default risk, which is the risk that the issuer of the fixed income securities becomes unable to service any profit payments or repay the principal amount upon repurchase. In the event of such a default, investors may suffer losses with respect to their capital invested and income foregone. To a lesser extent, perception of the issuer s ability to repay its debt obligations may impact its credit rating, resulting in a credit rating downgrade, which may adversely impact the fixed income securities market value. Interest Rate Risk Interest rate risk is inherent in investments of the Fund in fixed income securities, especially for fixed income Fund. Prices of Sukuk move inversely with interest rates and would fall in a period of rising interest rates. Investors will suffer capital losses when interest rates rise, resulting in a fall in Sukuk prices. Interest rate risk is particularly high for long-term Sukuk, and tends to be lower for short-term Sukuk. Interest rate risk is a general economic indicator that will impact on the management of the Fund regardless of whether it is a Shariah Fund or otherwise. It does not in any way suggest that Shariah Fund will invest in fixed income/debt securities which are not Shariah approved. All the investments for Shariah Fund accord with the Shariah Principles, the latter being derived from the sources of Islamic jurisprudence namely the Quran, the Sunnah, the Ijma and the Qiyas. Liquidity Risk This is the ability to divest fixed income securities in the open market at the desired price levels. This is not applicable if the fixed income securities are held till maturity. Non-Shariah Compliance Risk This is the risk of securities which were earlier classified as Shariah approved securities being subsequently classified non-approved securities by the Shariah Advisory Council of the SC due to certain reasons, such as changes in the issuer s operations. However, this risk is mitigated by regular review of the Fund's compliance with the list of securities approved by the Shariah Advisory Council of the SC and also monthly review of the invested securities by the Shariah Committee of the Manager. Equity Investment Risk Equity markets may be affected by economic fundamentals, social and political stability, and other factors. There are also many other specific risks, such as departure of a key executive or unforeseen entry of new competitors into the market, which may apply to individual stocks that may affect the performance of the Fund. AMB Client Services :

23 3.9 Control of Risk The EIM will take reasonable steps to ensure that the above potential risks are managed by: a) Actively monitoring the Fund s asset allocation to ensure minimum impact from any adverse market movements. They will ensure that the fixed income securities and equities are carefully selected through site visits, fundamental analysis and portfolio diversification. In the case of fixed income securities, the EIM will also focus on the credit quality of the fixed income securities, which have at least AA3 rating or equivalent by RAM, MARC or any other similar rating establishment. b) Investing the Fund over a wide range of fixed income securities and equities of different companies which provides diversification across a number of sectors and industries, minimising the risk not only of any single company s securities becoming worthless, but also of all holdings suffering uniformly adverse business conditions. c) Lengthening or shortening the Fund s average maturity period of the fixed income investments (within the Fund s objective) in anticipation of changing interest rates. d) Selecting investments that are bank or government guaranteed or secured against assets to mitigate default risk. e) To mitigate equity investment risk, the manager adopts research-based investment methodology covering macroeconomic factors and stocks fundamentals for top down asset allocation and bottom up securities selection. The EIM will seek to reduce all these risks associated with the Fund by virtue of its experience, the analytical process and by structuring a broadly diversified investment pool Temporary Defensive Positions When deemed appropriate and for the benefit of the Fund, the EIM may take temporary defensive positions which may be inconsistent with the Fund s principal strategy in attempting to respond to adverse market conditions, economic, political and other conditions. In this regard, the Fund may hold cash or cash equivalent instruments as the Funds only asset Investment Policy/Approach The Fund invests in Shariah based fixed income securities, predominantly in high quality locally issued Sukuk, equities and cash equivalent instruments to meet its objectives of providing a capital protection*, potential long-term capital gains and liquidity. Its fixed income securities investments consist of government Sukuk and private debt securities, which are rated AA3 or better by RAM, MARC or equivalent Investment Strategy / Investment Mechanism Shariah Fixed Income Securities The EIM will invest in a diversified portfolio of at least 85% of the Fund s NAV into Shariah based fixed income securities, predominantly in high quality locally issued Sukuk, with a minimum credit rating of AA3 by RAM, MARC or equivalent, to provide capital protection* at maturity and to maximise return within acceptable risk parameters. Diversification is to be done across all sectors and issuers (to reduce sector and credit risk). Depending on market conditions, the EIM will make the necessary adjustments to the portfolio duration to manage interest rate risk (price risk). Preferred investments will be in securities that are undervalued relative to their ratings, potential credit rating upgrade candidates, and situational issues with potential for improvement in the credit quality. In addition, movements in the yield curve may uncover further opportunities. * Investors are advised that unlike a guaranteed fund, this capital protected fund is protected by investments predominantly in Sukuk which is issued locally and not by a guarantee. Consequently the return of capital is SUBJECT TO the credit/default risk of the issuers of the fixed income securities. AMB Client Services :

24 Shariah Equities A maximum of 10% of the Fund s NAV will be invested in a diversified portfolio of quality shariah compliant equities, particularly in Dividend and Dividend Growth stocks in general, to provide potential returns to the Fund. The investment approach will mainly be bottom-up stock pick although the equity exposure may be reduced in time of uncertainties, to preserve capital. Given the life cycle of the Fund is being fixed for 3 years, the EIM would keep the volatility of the equity portion of the Fund to the lowest level possible. Policy on Listed and Unlisted Securities AMBDAQ-CP is to concentrate on investing in quality listed/unlisted debt securities, which provide good yields, for the medium-term period of 3 years. The portfolio is aimed at protecting the principal investment whilst achieving returns better than the prevailing fixed deposit rates on annualised basis, at an acceptable level of risk. The portfolio shall invest in investment grade Sukuk that are deemed to be fundamentally sound. In addition, the portfolio will also concentrates on securities that have attractive yields and trading opportunities. The investment process for unlisted securities is similar to the process used for listed securities. Decisions will be made after thorough assessment on companies, using in-house fundamental research supported by external research and companies' Prospectuses. Investment shall be made in fixed income securities issued locally with minimum credit ratings of AA3 by RAM, MARC or equivalent. The EIM shall undertake to conduct a thorough and rigorous credit assessment of potential investments and constant monitoring of current investments. A filtration process is employed for securities selection to ensure superior selection which complements the objective of the portfolio. The filtration process includes debt rating, financial ratio analysis, management quality assessment and structure of a particular instrument Asset Allocation Min 85% to max 98% in fixed income securities. Max 10% in equities. Min 2% in cash or cash equivalent instruments Benchmark The performance of AMBDAQ-CP will be benchmarked against the 12-month GIA rates of commercial banks, which is obtainable from the Bank Negara Malaysia website at Maturity of the Fund AMBDAQ-CP will mature on the third anniversary from the Commencement Date. The Fund shall be terminated on the Maturity Date and all Units held by the Unit Holders will be redeemed. The NAV per Unit will be calculated by dividing the NAV of the Fund by the Units in Circulation. No repurchase charge will be imposed on the Maturity Date. The net proceeds will be paid to Unit Holders within 2 months after the Maturity Date. Unit Holders may access our website or call our client services to find out the actual Maturity Date of the Fund. AMB Client Services :