RHB GLOBAL SUKUK FUND SERIES 2

Transcription

1 Date: 8 March 2017 RHB GLOBAL SUKUK FUND SERIES 2 RESPONSIBILITY STATEMENT This Product Highlights Sheet has been reviewed and approved by the directors of RHB Islamic International Asset Management Berhad ( RHBIIAM ) and they have collectively and individually accepted 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 the Product Highlights Sheet false or misleading. STATEMENT OF DISCLAIMER The Securities Commission Malaysia has authorised the issuance of RHB Global Sukuk Fund Series 2 and a copy of this Product Highlights Sheet has been lodged with the Securities Commission Malaysia. The authorisation of the RHB Global Sukuk Fund Series 2 and lodgement of this Product Highlights Sheet, should not be taken to indicate that the Securities Commission Malaysia recommends the RHB Global Sukuk Fund Series 2 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 RHBIIAM responsible for the RHB Global Sukuk Fund Series 2 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. The Fund has been certified as Shariah-compliant by the Shariah adviser appointed for the Fund i.e. RHB Islamic Bank Berhad.

2 This Product Highlights Sheet only highlights the key features and risks of RHB Global Sukuk Fund Series 2. Investors are advised to request, read and understand the Disclosure Documents before deciding to invest. PRODUCT HIGHLIGHTS SHEET RHB GLOBAL SUKUK FUND SERIES 2 Name of Fund RHB Global Sukuk Fund Series 2. Manager RHB Islamic International Asset Management Berhad. Trustee HSBC (Malaysia) Trustee Berhad. Shariah Adviser RHB Islamic Bank Berhad. Fund Category Sukuk (close-ended). Fund Type Income fund. Launch Date 8 March Offer Price RM per unit during the offer period. Offer Period 8 March April 2017 (45 days). This 45-day Offer Period may be closed earlier by the Manager with the Trustee s consent if the Manager deems it opportunistic to commence investing immediately based on the Manager s view of the economic outlook and the prevailing market conditions. Commencement Date Tenure and Maturity Date Financial Year End The seventh (7 th ) Business Day immediately following the end of the Offer Period. The tenure of this Fund is 3 years. The maturity date is the third (3 rd ) anniversary of the Commencement Date. 31 May. This Fund is suitable for investors who: (i) (ii) have a moderate risk appetite; PRODUCT SUITABILITY seek returns from the income distributed and/or capital appreciation from a global Shariah-compliant fixed income instruments portfolio; and (iii) have a medium term (i.e. 3 years) investment horizon. KEY PRODUCT FEATURES INVESTMENT OBJECTIVE The Fund aims to maximise returns at its Maturity Date from a concentrated portfolio of global Shariah-compliant fixed income instruments. *Note: Any material change to the objective of this Fund requires the Unit Holders approval. INVESTMENT STRATEGY In managing the Fund, the Manager will actively seek out global Shariah-compliant fixed income instruments such as sukuk, Islamic commercial papers, Islamic bankers acceptances and Islamic notes that are able to offer attractive yields (i.e. yields, net of the Fund s expenses that are greater than the Fund s benchmark) and/or capital appreciation during the tenure of the Fund. These are Shariahcompliant fixed income instruments issued by corporations, financial institutions, supra-nationals, governments and their agencies globally. The Fund s investments may also include Islamic money market instruments and Placements of Cash. Given the Fund s 3-year tenure, the Manager will invest in a concentrated portfolio of not more than 20 global Shariah-compliant fixed income instruments, with at least 70% of NAV in sukuk to lock-in the yield. The Manager may trade the Shariah-compliant fixed income instruments as and when opportunities arise and/or to risk manage the credit/default risk of the Shariah-compliant fixed income instruments issuers or in response to external adverse events affecting any of the Shariah-compliant fixed income instruments in the Fund s portfolio. The Fund will generally be investing in Shariah-compliant fixed income instruments of a tenure that is as close as possible to the tenure of the Fund so that its maturity is as close as possible to the Maturity Date of the Fund. It may not be possible to purchase Shariah-compliant fixed income instruments with the exact tenure as the Fund as the Manager may take into account other factors such as yield and credit quality of the Shariah-compliant fixed income instrument. The Fund s asset allocation is as follows: 90% to 100% of Net Asset Value Investments in global Shariah-compliant fixed income instruments of which at least 70% of NAV in sukuk. Up to 10% of Net Asset Value Investments in liquid assets including Islamic money market instruments and Placements of Cash. RHB Global Sukuk Fund Series 2 1

3 BENCHMARK 3-years Islamic fixed deposit-i indicative rate by Maybank Islamic Berhad determined at the Commencement Date. For ease of reference, investors may refer to for this benchmark or investors may request for this benchmark by calling us at at any time during our office hours: Mondays through Fridays from 9.00 a.m p.m. or us at This benchmark will be published in the Fund s financial reports. As the Fund invests across various Shariah-compliant fixed income instruments of different ratings, investors of this Fund will assume a higher risk as compared to a depositor of the Maybank Islamic Berhad s 3-years Islamic fixed deposit-i. DISTRIBUTION Distribution Policy Distribution Mode Subject to the availability of income, the Fund will declare distributions annually. Distributions, if any, after deduction of taxation and expenses (i.e. net distributions), will be payable by cheque to the Unit Holders. On the Maturity Date, Units will be compulsorily redeemed at the Net Asset Value per Unit as at the Maturity Date. KEY RISKS Credit / Default risk Currency risk Interest rate risk Country risk Inflation / Purchasing power risk Concentration risk Mismatch risk This risk refers to the creditworthiness of the issuers of Shariah-compliant fixed income instruments and the expected ability of the issuers to make timely payment of profit and/or principal. Shariah-compliant fixed income instruments are subject to both actual and perceived measures of creditworthiness. The downgrading of a rated Shariah-compliant fixed income instrument or adverse publicity and investor perception (whether in relation to the Shariah-compliant fixed income instrument itself or the issuer of the Shariah-compliant fixed income instrument) could decrease the value and liquidity of the Shariah-compliant fixed income instrument, particularly in a thinly traded market. An economic recession may adversely affect an issuer s financial condition and the market value of Shariah-compliant fixed income instruments issued by such an entity. The issuer s ability to service its payment obligations may be adversely affected by specific issuer developments, or the issuer s inability to meet specific projected business forecasts. All these factors may impact the value of the Fund or result in the Fund experiencing losses. As the Fund may invest 90% to 100% of its Net Asset Value in global Shariah-compliant fixed income instruments denominated in any currency, the Fund is therefore subject to currency risk. Fluctuation in foreign exchange rates will affect the value of the Fund s foreign investments when converted into local currency and subsequently the value of Unit Holders investments. The Fund may participate in Shariah-compliant currency hedging instruments to mitigate the currency risk, whenever necessary. Interest rate is a general indicator that will have an impact on the management of a fund regardless whether it is a Shariah-compliant fund or otherwise. It does not in any way suggest that the Fund will invest in fixed income instruments which are Shariah non-compliant. Thus, interest rate changes would affect the performance of the Fund s portfolio of Shariah-compliant fixed income instruments. In the event of rising interest rates, prices of such affected Shariah-compliant fixed income instruments will generally decrease and vice versa. Meanwhile Shariah-compliant fixed income instruments with longer tenures and lower profit rates are more sensitive to interest rate changes. This risk will be mitigated via the management of the duration structure of the portfolio of Shariah-compliant fixed income instruments for the Fund. In addition to currency risk, the Fund is also subject to country risk, for example the value of the assets of the Fund may be affected by the economic and political climate, restriction on currency repatriation or other developments in the law or regulations of the countries in which the Fund may invest in. Further, when investing in foreign markets, there are countries which may require prior approvals before investments can take place. For example, if and when the Fund invests in countries such as China, Taiwan, Korea and India, such countries require the application of an investment licence or registration of an investor code before any investment can be made in these countries. As such, if investments in such countries are undertaken, there may be a risk that such registration or licence may be revoked or not renewed by the relevant authority and the Fund s investment in these countries may be affected. The effect on the Fund s investments will depend on the regulatory requirements of the respective countries. For example, if a foreign market requires the Fund to obtain an investment licence which is subject to renewal and if such investment licence is not renewed in a timely manner, this may result in the Fund s investment account in that country to be frozen by the regulator resulting in investment activities for the Fund in that country to be suspended. To mitigate this risk, the Manager will monitor closely the adherence of investment regulatory requirements in such countries. Inflation can be defined as increases of price level of goods and services and is commonly reported using the consumer price index as a measure. Inflation is one of the major risks to investors and results in uncertainty over the future value of the investments. Inflation reduces the purchasing power of money. In an inflationary environment, Shariah-compliant fixed income instruments are exposed to higher inflation risks than equities due to its fixed returns nature as compared to equities where returns are variable. As the Fund primarily invests in Shariah-compliant fixed income instruments where the returns are fixed, inflation will have an impact of reducing the fixed income real return i.e. return of fixed income instrument less inflation rate and correspondingly the Fund s real return. The Fund holds fewer Shariah-compliant fixed income instruments than a typical portfolio of Shariah-compliant fixed income instruments which usually holds Shariah-compliant fixed income instruments. As such, a decline in the performance of any of these instruments in the Fund s concentrated portfolio may cause the Fund s overall value to decline to a greater degree than if the Fund was exposed to a less concentrated portfolio. This risk shall arise when the Fund buys Shariah-compliant fixed income instruments whose tenure is longer than the Fund s tenure of 3 years. If interest rates* go up as the Fund approaches its Maturity Date, the price of the longer term Shariah-compliant fixed income instruments held by the Fund may fall. The longer the tenure of the Shariah-compliant fixed income instruments, the greater the drop in price. In such a case, the Shariah-compliant fixed income instruments may be liquidated at unfavourable prices and investors who hold RHB Global Sukuk Fund Series 2 2

4 their Units to maturity may receive less than what they originally invested. * Interest rate is a general indicator that will have an impact on the management of a fund regardless whether it is a Shariah-compliant fund or otherwise. It does not in any way suggest that the Fund will invest in fixed income instruments which are Shariah non-compliant. Reclassification of Shariah status risk This risk refers to the risk that the currently held Shariah-compliant fixed income instruments invested by the Fund may be declared as Shariah non-compliant by the relevant authority. In the event the Sukuk, Islamic money market instruments and Islamic deposits held by the Fund are declared as Shariah non-compliant by the relevant authority, the underlying assets which constitute the structure of the Sukuk will be changed according to Shariah compliant assets and hence the Sukuk in itself will not trigger an event of default. Thereby, the instruments and placements and the invested capital will continue to have legal recourse on the new underlying assets. DISTRIBUTION RECORD This Fund has not declared any distribution yet. PAST PERFORMANCE OF THE FUND IS NOT AN INDICATION OF ITS FUTURE PERFORMANCE. FEES & CHARGES This table describes the charges that you may directly incur when you buy or redeem units of this Fund: Charges Sales charge 1 by distribution channels Institutional Unit Trust Adviser (IUTA) Tied (retail agent) Direct sales (Direct investment with the Manager) Up to 3.00% of the investment amount. Up to 3.00% of the investment amount. Up to 3.00% of the investment amount. An investor can expect differing sales charge to be levied when buying units from the various distribution channels and within each distribution channel, subject to the maximum sales charge stipulated herein. This is due to the different levels of services provided by each distribution channel and/or the size of the investment undertaken. Repurchase charge 1a Period from the Fund s commencement date < 3 years Maturity Date Repurchase charge based on the redemption amount 1.00% Nil All repurchase charges levied will be retained by the Fund. Dilution fee or transaction cost factor None. Other charges payable directly by the investors Switching fee Not applicable (switching is not allowed). Transfer fee 1 RM5.00 per transfer. This table describes the fees that you may indirectly incur when you invest in the Fund: Fees and Expenses Annual management fee Annual trustee fee 1 Expenses directly related to the Fund Other fees payable indirectly by an investor (if any) None. Up to 0.05% per annum of NAV before deducting the Trustee s fees for that particular day (excluding foreign custodian fees and charges). Auditors fees and other relevant professional fees, foreign custodial charges, cost of distribution of interim and annual reports, tax certificates, reinvestment statements and other notices to Unit Holders, commissions or fees paid to brokers, transaction costs and taxes. None. 1 The implementation of GST is effective from 1 April 2015 at the rate of 6% and the fees and charges payable are exclusive of GST. 1a The implementation of GST is effective from 1 April 2015 at the rate of 6% and the fees or charges payable is exclusive of GST. Nevertheless, the repurchase charge herein is not subject to GST. However, the Manager reserves the right to charge GST without prior notification to investor when directed to do so by the Royal Malaysian Customs or when there is a change in the interpretation of the nature of the repurchase charge by the Royal Malaysian Customs. Note: The Manager may, for any reason at any time, waive or reduce the amount of its management fee only or other charges directly payable by the Unit Holder and/or investor in respect of the Fund, either generally (for all Unit Holders and/or investors) or specifically (for any particular Unit Holder and/or investor) and for any period or periods of time at its absolute discretion. RHB Global Sukuk Fund Series 2 3

5 Minimum investment Minimum investment Minimum units Minimum balance initial additional repurchase investment TRANSACTION INFORMATION RM1,000 or such other amount as the Manager may from time to time accept. RM1,000 or such other amount as the Manager may from time to time accept. 1,000 Units. 900 Units. Redemption period Cooling-off period Switching facility Transfer facility Dealing hours Redemption monies to be paid within: ten (10) days from the Valuation Day, if redemption occurs prior to the Maturity Date; or upon maturity of the Fund, two (2) months from the Maturity Date. Unit Holders have the right to request for a refund of their investment within six (6) business days # which shall be effective from the date of receipt of the application by the Manager, subject to eligibility. # These are the working days when the Manager is open for business. Not available. Available. In the event of a partial transfer, both the transferor and the transferee must each hold a minimum investment balance of nine hundred (900) units after the transfer. During Offer Period 9:00 a.m. to 4:00 p.m. on any business day #. After Offer Period Submission of redemption request on any business day # : Mondays to Thursdays 9:00 a.m. to 4:00 p.m. Fridays (Valuation Day) 9:00 a.m. to 12:00 noon. # These are the working days when the Manager is open for business. YOU SHOULD NOT MAKE PAYMENT IN CASH TO A UNIT TRUST CONSULTANT OR ISSUE A CHEQUE IN THE NAME OF A UNIT TRUST CONSULTANT. VALUATIONS AND EXITING FROM INVESTMENT VALUATION OF ASSETS The assets of the Fund will be valued every Friday that is a Business Day ( Valuation Day ), commencing after the commencement date of the Fund. Should the Valuation Day fall on a non-business Day, then the valuation of assets will take place on the next Business Day. As certain foreign markets in which the Fund may invest in may have different time zones from that of Malaysia, the valuation of the Fund for a Business Day will be conducted by 2.30 p.m. (or such other time as may be determined by the Manager from time to time) on the following day in which the Manager is open for business. Accordingly, the price of the Fund for a particular Business Day on the Valuation Day will not be published in the media on the next day but will instead be published the next following day (i.e. price will be two (2) days old). This will be specifically indicated in the media. Investors may obtain the most current computed price by contacting the Manager at EXITING FROM THIS INVESTMENT During the 45-day offer period, the Repurchase Price shall be RM After the offer period, the Repurchase Price shall be the NAV per unit as at the next valuation point of the Fund s relevant Business Day after the request for repurchase is received by the Manager ( forward pricing ). The valuation point of any Repurchase Price will be on the Fund s Valuation Day i.e. every Friday of the week that is a Business Day. Any redemption after the Fund s commencement date will incur a repurchase charge (1.00% of the redemption amount) except for redemption requests received on the Fund s maturity date. All repurchase charges will be retained by the Fund. For details of the repurchase charge, please refer to the above Fees and Charges. For partial redemption, the minimum redemption of units is 1,000 units and the balance of units after the redemption must be at least 900 units (the minimum investment balance ). However, the Manager shall not be bound to comply with any request for redemption of units if the balance of units held after the redemption is less than the minimum investment balance. On the Fund s maturity date, the Fund shall be compulsorily terminated and all units held by each Unit Holder duly redeemed. If the maturity date falls on a Business Day, the NAV per unit will be calculated by dividing the NAV by the number of units in circulation at the close of business on the maturity date. If the maturity date falls on a non-business Day, the NAV per unit will be calculated by dividing the NAV by the number of units in circulation at the close of business on the Business Day immediately preceding the maturity date. No repurchase charge will be imposed on units held by the Unit Holders on the Fund s maturity date. Redemption monies to be paid within: ten (10) days from the Valuation Day if redemption occurs prior to its maturity date; or upon maturity of the Fund, two (2) months from the Fund s maturity date. RHB Global Sukuk Fund Series 2 4

6 Frequency of redemption Unit Holders may only redeem their units every Friday ( Valuation Day ), commencing after the commencement date of the Fund. In the event the Valuation Day is a non-business Day, then the Fund s valuation will take place on the next Business Day. Application for redemption of units may be submitted to the Manager s office earlier, on any day other than Saturdays, Sundays and public holidays during its business hours, before the Valuation Day cut-off time for acceptance of the redemption request. Any redemption request received by the Manager after the cut-off time of 12 noon on Friday that is a Valuation Day, will be considered as transactions for the next redemption cycle. CONTACT INFORMATION To contact the Manager or to find out about the distribution channels of the Fund, you may call us at at any time during office hours: Mondays through Fridays from 9.00 a.m p.m. or your enquiries to rhbiiam.enquiry@rhbgroup.com. HOW DO YOU LODGE A COMPLAINT? 1. For internal dispute resolution, you may contact: (c) via phone to via fax to via to : : : rhbiiam.enquiry@rhbgroup.com (d) via letter to : RHB Islamic International Asset Management Berhad Level 8, Tower 2 & 3 RHB Centre, Jalan Tun Razak Kuala Lumpur 2. If you are dissatisfied with the outcome of the internal dispute resolution process, please refer your dispute to the Securities Industry Dispute Resolution Center (SIDREC): (c) (d) via phone to via fax to via to via letter to : : : info@sidrec.com.my : Securities Industry Dispute Resolution Center (SIDREC) Unit A-9-1, Level 9, Tower A Menara UOA Bangsar No. 5, Jalan Bangsar Utama Kuala Lumpur 3. You can also direct your complaint to the Securities Commission Malaysia ( 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: (c) via phone to the Aduan Hotline at via fax to 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 4. Federation of Investment Managers Malaysia (FIMM) s Complaints Bureau: via phone to : via fax to : (c) via to : complaints@fimm.com.my (d) via online complaint form available at : (e) via letter to : Legal, Secretarial & Regulatory Affairs Federation of Investment Managers Malaysia , 6 th Floor Wisma Tune No. 19 Lorong Dungun Damansara Heights Kuala Lumpur RHB Global Sukuk Fund Series 2 5

7 Business Day Disclosure Documents Glossary A day (other than Saturdays, Sundays and public holidays) on which Bursa Malaysia is open for trading or banks in Kuala Lumpur are open for business; and the markets in which at least 50% of the Fund s net asset value (in aggregate) invested therein, are also open for trading. The Fund s prevailing prospectus and its supplementary(ies) (if any). Fund RHB Global Sukuk Fund Series 2. GST Net Asset Value (NAV) Placements of Cash Quran Repurchase Price Shariah Sunnah Unit Holder(s) Goods and services tax. The net asset value 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. These are placements of cash in any Islamic deposits or Islamic investment accounts with any financial institution(s), which are not embedded with or linked to financial derivative instruments (structured deposits). The miraculous words of Allah revealed to the Prophet Muhammad (Peace and Blessing be Upon Him) in Arabic language which begins with Surah (Chapter) al-fatihah and ends with Surah (Chapter) an- Nas. The price (before deducting any repurchase charge) payable by the Manager to a Unit Holder pursuant to the repurchase of a unit. Islamic Law comprising the whole body of rulings pertaining to human conduct derived from the sources of the Shariah. The primary sources are the Quran and the Sunnah, while the secondary ones are those established sources such as Ijma (consensus), Qiyas (analogy), Maslahah (beneficial), Istihsan (juristic preference), Istishab (presumption of continuity), Uruf (custom) and Sadd Zara ie (blocking the mean). Anything which is attributed to the Prophet Muhammad (Peace and Blessing be Upon Him) comprising his saying, acts, tacit approval and attributes. The person(s) for the time being registered under the provisions of the deed as the holder(s) of units and person(s) jointly so registered. RHB Global Sukuk Fund Series 2 6