AmSchroder European Equity Alpha

Transcription

1 AmInvestment Services Berhad ( A) AmSchroder European Equity Alpha (the Fund ) RESPONSIBILITY STATEMENTS This Product Highlights Sheet has been reviewed and approved by the directors of AmInvestment Services 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 this Product Highlights Sheet false or misleading. STATEMENTS OF DISCLAIMER The Securities Commission Malaysia has authorised the issuance of AmSchroder European Equity Alpha and a copy of this Product Highlights Sheet has been lodged with the Securities Commission Malaysia. The authorisation of the AmSchroder European Equity Alpha and lodgement of this Product Highlights Sheet, should not be taken to indicate that the Securities Commission Malaysia recommends the AmSchroder European Equity Alpha 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 AmInvestment Services Berhad responsible for the AmSchroder European Equity Alpha 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. AmSchroder European Equity Alpha 1

2 This Product Highlights Sheet only highlights the key features and risks of the Fund. Investors are advised to request, read and understand the Prospectus of the Fund ( Prospectus ) before deciding to invest. PRODUCT HIGHLIGHTS SHEET This Product Highlights Sheet is an important document: It is a summary of the salient information about the Fund. You MUST NOT invest in the Fund based on this Product Highlights Sheet alone. Please read the Prospectus before deciding to make an investment. If you do not have a copy, please contact us to ask for one. You should not invest in the Fund if you do not understand it or are not comfortable with the accompanying risks. What is the Fund about? AmSchroder European Equity Alpha is an equity feeder fund issued by AmInvestment Services Berhad that aims to provide capital growth primarily through investment in equity securities of European companies. It will invest in a select portfolio of securities which it believes offer the best potential for future growth. Who is the Fund suitable for? The Fund is suitable for investors who: want access to European growth prospects; want attractive long-term returns from European equities; and want to diversify and away from domestic, Asian and US equities. What am I investing in? Fund Category Fund Type Investment Objective Investment Strategy Feeder (European Equity) Capital growth To provide capital growth primarily through investment in equity securities of European companies. It will invest in a select portfolio of securities which it believes offer the best potential for future growth. Note: Any material change to the investment objective of the Fund would require Unitholders approval. A minimum of 95% of the Fund s net asset value ( NAV ) will be invested in the Schroder ISF European Equity Alpha ( Target Fund ). AmInvestment Services Berhad (the Manager ) may adopt temporary defensive strategy by maintaining a maximum of 100% in liquid asset/ cash weightings that may be inconsistent with the Fund s principal investment and asset allocation strategy. This defensive strategy may be necessary to protect the Fund s investment in response to adverse market, economic, political, or any other conditions. In addition, we may choose to replace the Target Fund with another fund of similar objective, if in our view, the Target Fund no longer meets the Fund s investment objective, or when acting in the interest of Unitholders. Asset Allocation Target Fund Minimum 95% of the Fund s NAV Base Currency of the Fund Performance Benchmark Liquid assets Ringgit Malaysia Launch Date 8 August 2006 Initial Offer Price Income Distribution Target Fund s Information Name of Target Fund Management Company of Target Fund Investment Manager of Target Fund Domicile Country Regulatory Authority MSCI Europe Net (Total Return) Index. (source: RM per unit Income distribution (if any) is paid at least once every year. Schroder ISF European Equity Alpha Schroder Investment Management (Luxembourg) S.A. Schroder Investment Management Limited Luxembourg Date of Establishment 31 January 2003 Investment Objective Commission de Surveillance du Secteur Financier, Luxembourg Maximum 5% of the Fund s NAV The investment objective of SISF European Equity Alpha is to provide capital growth primarily through investment in equity securities of European companies. In order to achieve the objective the Investment Manager of the Target Fund will invest in a select portfolio of securities, which it believes offer the best potential for future growth. AmSchroder European Equity Alpha 2

3 Investment Strategy The Investment Manager of the Target Fund adopts an active management strategy, by aggressively positioning the portfolio according to prevailing market conditions. This could be on the basis of particular sectors, themes or styles, or on a selected number of stocks which the Investment Manager of the Target Fund believes have the potential to provide enhanced returns relative to the market. Who am I investing with? Manager : AmInvestment Services Berhad ( AIS ) Investment Manager : AmInvestment Management Sdn Bhd ( AIM ) Trustee : AmanahRaya Trustees Berhad ( ART ) Trustee s Delegate : Citibank N.A. Singapore Branch Taxation Advisor : Deloitte KassimChan Tax Services Sdn Bhd Auditor : Ernst &Young All transactions with related parties are to be executed on terms which are best available to the Fund and which are not less favourable to the Fund than on arm s length transaction between independent parties. The Fund may have dealings with parties related to the Manager. The related parties defined are AIM, AmIslamic Funds Management Sdn Bhd ( AIFM ), AmInvestment Bank Berhad, AmBank(M) Berhad and AmIslamic Bank Berhad. The directors of AIS may have direct or indirect interest through their directorship in AIM and AIFM. However, AIS does not carry on a similar business as AIM and AIFM. ART has delegated its custodian function for the foreign investments of the Fund to Citibank N.A, Singapore branch. To the best of ART s knowledge there has been no event of conflict of interest or related party transaction exists between ART and the Manager or any potential occurrence of it. What are the possible outcomes of my investment? Best Case Mid Case Worst Case Capital appreciation and income distribution. No significant change in investment i.e. no capital appreciation and no income distribution. Capital loss and with no income distribution. What are the key risks associated with the Fund? General Investment Risks Market Risk Inflation Risk Investment Manager Risk Mismatch Risk Financing Risk Non-Compliance Risk This is the risk of prices of assets falling in response to general market conditions such as economic factors, socio-political and regulatory factors and broad investor sentiment. This is the risk that investors' investment in the Fund may not grow or generate income at a rate that keeps pace with inflation. This is the risk of the Investment Manager making poor investment decisions which may adversely affect the performance of the Fund. This is the risk that the Fund chosen by the investor may not be suitable for the needs and circumstances of the investor. This is the risk of investing with borrowed money, which includes the investor s inability to service the loan repayments and the adverse impact of an increase in interest rates on the loan repayments, where the investor may be subject to higher loan repayment installments. This is the risk of the Manager, the Investment Manager or the Trustee not complying with internal policies, the Deed of the Fund, securities law or guidelines issued by the regulators, which may adversely affect the performance of the Fund. Specific Risks associated with the Fund Currency Risk Regulatory & Legal Risk Taxation Risk Country Risk Risk of a Passive Strategy This is the risk associated with investments that are denominated in currencies that are different from the base currency of the Fund. When the currency of foreign investments depreciates against the base currency of the Fund, the Fund will suffer currency losses. This is in addition to any capital gains/losses from the investment. The value of the Fund s investments may be affected by uncertainties such as political developments, changes in government policies, changes in taxation, restrictions on repatriation of investment proceeds and other developments in the law and regulations of the countries in which investments are made. This is the risk that the proceeds from the sale of securities and/or the receipt of income in some markets may be subject to tax, levies, duties or other charges imposed by the authorities in those markets. As the Fund invests in the Target Fund which operates in country other than Malaysia, the Fund will be exposed to the risks specific to the country in which the Target Fund operates. As the Fund adopts a passive strategy of investing a minimum of 95% of its NAV into the Target Fund at all times, this strategy would result in the Fund being exposed to the risk of its NAV declining when the Target Fund's net asset value declines. AmSchroder European Equity Alpha 3

4 Risk of investing in a Feeder Fund Liquidity Risk This is the risk that the Fund may need to liquidate its investment from the Target Fund and hold 100% of the Fund s NAV in cash to protect Unit Holders interest. This is the risk of a security with poor liquidity selling at a discount to its fair value, which in turn would adversely affect the NAV of the Fund. Specific Risks associated with the Target Fund Market Risk Liquidity Risk Small Cap Liquidity Risk Derivatives risk Operational risk The value of investments by the Target Fund may go up or down due to changing economic, political or market conditions, or due to an issuer s individual situation. There is no secondary market for the Target Fund. All redemption requests should be made to the distributor of the Target Fund through whom investor originally purchased the shares. The liquidity of the Target Fund may be limited if a significant portion of the assets of the Target Fund is to be sold to meet redemption requests on a short time frame. During this period, the portfolio allocation may be modified to prioritise liquidity. Investments in small companies can be difficult to sell quickly which may affect the value of the Target Fund and, in extreme market conditions, its ability to meet redemption requests upon demand. The Target Fund may use financial derivative instruments as part of the investment process. The use of futures, options, warrants, forwards, swaps or swap options involves increased risk. The Target Fund s ability to use such instruments successfully depends on the Investment Manager of the Target Fund s ability to accurately predict movements in stock prices, interest rates, currency exchange rates or other economic factors and the availability of liquid markets. If the Investment Manager of the Target Fund s predictions are wrong, or if the financial derivative instruments do not work as anticipated, the Target Fund could suffer greater losses than if the Target Fund had not used such instruments. The Target Fund s operations depend on third parties and it may suffer disruption or loss in the event of their failure. Note: The abovementioned risks which investors should consider before investing into a unit trust fund should not be considered to be an exhaustive list. Investors should be aware that investments in the Fund may be exposed to other unforeseeable risks from time to time. Investors are advised to consult their professional adviser. Please refer to the Prospectus under Risk Factors and The Information on the Target Fund for further details on risks. What are the fees and charges involved? There are fees and charges involved and you are advised to consider them before investing in the Fund. What will I be charged by AIS? Entry Charge Distribution Channel Direct Sales & IUTA EPF Sales Maximum entry charge Up to 5.00% of NAV per unit of the Fund Not applicable. The Fund is currently not approved under EPF investment scheme. Exit Penalty Transfer Fee Bank Charges/Fees Switching Fee Note: The entry charge is to be charged upon investment in the Fund. There will be no entry charge payable by AMMB Holdings Berhad and its group of companies staff. Investors are advised that they may negotiate for lower entry charge prior to the conclusion of sales. Example Direct Sales & IUTA: For every RM10,000 of investment in the Fund, you will be charged RM500 of entry charge. i.e. RM10,000 x 5.00% of entry charge. There will be no exit penalty charged by the Fund. Transfer of the Fund s units is allowed at the Manager's discretion. Bank charges/fees may be incurred upon withdrawals. For switches between any of the funds managed by AIS, you will be charged on the differences of entry charge between funds switched, which is up to a maximum of 6% of NAV per unit. What are the key ongoing fees charged to the Fund? Annual Management Fee Annual Trustee Fee Up to 1.80% p.a. of the NAV of the Fund Up to 0.07% p.a. of the NAV of the Fund Example Assuming the amount you have invested in the Fund is RM10,000, the fees that will be calculated on a daily basis and will be paid monthly are as follows: Management Fee per day Trustee Fee per day : (RM10,000 x 1.80%)/365 = RM0.49 : (RM10,000 x 0.07%)/365 = RM0.02 AmSchroder European Equity Alpha 4

5 Target Fund Fees and Charges Investors should note that the fees and charges provided below is a non exhaustive list payable by the Target Fund. Management Fees Custodian Fees and Trust Expenses Currently the Target Fund charges a fee of 1.5% p.a. of the net asset value as a management fee. There will be no double charging of management fee. Management fee paid to the Target Fund will be paid from the portion of management fee received by the Fund. Custodian charges incurred in respect of the Target Fund are up to 0.50% p.a. plus expenses. Note: You are advised to consider the fees and charges involved before investing in the Fund. Unit prices and distributions, if any, may go down as well as up. How will I be notified of any increase in fees and charges? A written communication will be sent to Unit Holders to notify of the higher rate and its effective date; A supplementary or replacement prospectus will be registered and issued; and A notice period of 90 days will be given to the Unit Holders prior to the effective date of the new fees and charges. How often are valuations available? We publish updated information on our website and the NAV per unit of the Fund is published in major newspapers on a daily basis. How can I invest in or exit from this investment? How can I invest in this investment? An investor may submit an application to the Manager on any Business Day with complete documentation subject to the minimum initial investment amount and minimum additional investment amount (or such amount as the Manager may from time to time decide). Minimum Initial Investment Minimum Additional Investment Submission of application Cut-off time RM1,000 RM500 Monday to Friday (except public holiday) By 4.00 p.m. on a Business Day How can I exit from this investment? An investor may withdraw all or part of their units on any Business Day subject to the minimum withdrawal and to maintain a minimum holding for partial withdrawal (or such units as the Manager may from time to time decide). Minimum Withdrawal Minimum Holding Submission of withdrawal notice Cut-off time Payment of withdrawal proceeds Cooling-off Rights 500 units 1,000 units Monday to Friday (except public holiday) By 4.00 p.m. on a Business Day Within 10 days of receiving the repurchase notice. If you make an investment and later decide that the investment does not suit your needs, you may withdraw your money within the cooling-off period, which is within six (6) Business Days of making the investment. You should be aware that the cooling-off right is only available on your first investment with the Manager. Subsequent investments will not enjoy this right. The cooling-off right is not available to corporation/institution, staff of the Manager and persons registered to deal in unit trust funds of the Manager. Example Assuming that you wish to redeem 10,000 units from the Fund. The NAV per unit is RM and there is no exit penalty charged by the Fund. Hence, the withdrawal proceeds that you will receive is RM10,000. Gross withdrawal proceeds = Units redeemed x NAV per unit = 10,000 units x RM = RM10, Net withdrawal proceeds = Gross withdrawal proceeds Exit penalty = RM10,000 (10,000 units x RM x 0.00%) = RM10, No withdrawals will be paid in cash under any circumstances. AmSchroder European Equity Alpha 5

6 Who should I contact for further information or to lodge a complaint? 1. For internal dispute resolution, you may contact our customer service representative: (a) via phone to : (b) via fax to : (c) via to : aminvest@ambankgroup.com (d) via letter to : AmInvestment Services Berhad Level 9, Bangunan AmBank Group No.55, Jalan Raja Chulan 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): (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 No.5, Jalan Bangsar Utama Kuala Lumpur 3. You can also direct your complaint to 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: (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 AmSchroder European Equity Alpha 6