AMB ETHICAL TRUST FUND

Transcription

1 AMB ETHICAL TRUST FUND RESPONSIBILITY STATEMENT This Product Highlights Sheet has been reviewed and approved by the directors or authorised committee or persons approved by the Board of Amanah Mutual Berhad and they collectively and individually accept full responsibility for the accuracy of the information. Having made all reasonable enquiries, they confirm to the best of their knowledge and belief, 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. STATEMENTS OF DISCLAIMER The Securities Commission Malaysia has authorised the issuance of AMB EthicalTrust Fund and a copy of this Product Highlights Sheet has been lodged with the Securities Commission Malaysia. The authorisation of AMB Ethical Trust Fund and lodgement of this Product Highlights Sheet should not be taken to indicate that the Securities Commission Malaysia recommends AMB Ethical Trust Fundor 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 Management Company responsible for AMB Ethical Trust Fund and takes no responsibility for the contents of this Product Highlights Sheet. The Securities Commission Malaysia makes no representation on the accuracy or completeness of this Product Highlights Sheet, and expressly disclaims any liability whatsoever arising from, or in reliance upon the whole or any part of its contents. 1 Updated as at September 2014

2 This Product Highlights Sheet only highlights the key features and risks of this unlisted capital market product. Investors are advised to request, read and understand the disclosure documents before deciding to invest. PRODUCT HIGHLIGHTS SHEET PRODUCT NAME: AMB ETHICALTRUST FUND(AMBETF) BRIEF INFORMATION ON THE FUND AMB Ethical Trust Fund (AMBETF) is managed by Amanah Mutual Berhad (AMB).It is an open-ended equity fund that consists of long term investment in equities, bonds and cash that comply to ethical principles. Therefore, the Fund does not provide capital protection or capital guarantee. The Fund s primary objective is to provide investors with income and capital growth for medium to long term through investments that comply with ethical principles. PRODUCT SUITABILITY The fund is suitable for investors who:- desire income and capital returns from the equity and bond markets. would like to channel their resources to companies that demonstrate socially responsible practices relating to the environmentand community. Investment policy and strategy KEY PRODUCT FEATURES 1) The diagram below displays the investment policy practiced by the AMBETF:- COMPANIES LISTED ON THE BURSA MALAYSIA Our investment approach combines a macroeconomic and market analysis top-down approach to decide on strategic asset allocation with a rigorous bottom-up approach for stock selection which willemphasise on value and growth potential of the stocks. PERFORMANCE FILTER NEGATIVE FILTER TO REMOVE INAPPROPRIATE INVESTMENTS; - Principal business in the promotion of gaming, tobacco and alcohol POSITIVE FILTER; - Enviromentally friendly Promote healthy social values -Good corporate governmance Macro economic analysis Strategic asset allocation Stock selection Portfolio construction Monitor and assess investment environment to identify emerging investment trends and themes Fundamental analysis; Valuation screen for growth, value, momentum and quality; and Liquidity and market capitalisation consideration IDENTIFY SUITABLE COMPANIES FOR INVESTMENT PURPOSES 2 Updated as at September 2014

3 Base currency FUND INFORMATION MYR (Malaysian Ringgit) Launch date 7 th January 2003 Financial year end Domicile Registration Asset allocation Benchmark Distribution policy Manager Trustee Board of directors Investment Committee Members (ICM) External Investment Managers (EIM) Auditors Tax advisor Solicitors 31 st August Malaysia Securities Commission Malaysia 70% - 98% in equities 2% - 30% in cash or bonds (or a combination of both) 80% FBM EMAS Shariah Index + 20% KL Finance Index Income (if any) is expected to be distributed annually at the Manager s discretion, subject tothe approval from the Trustee. Amanah Mutual Berhad ( U) HSBC (Malaysia) Trustee Berhad ( T) Tun Ahmad Sarji bin Abdul Hamid (Chairman) Tan Sri Dato Sri Hamad Kama Piah bin Che Othman Tan Sri Dato Dr. Wan Mohd. Zahid bin Mohd. Noordin Tan Sri Dato Md. Desa bin Pachi Dato Idris bin Kechot Tun Ahmad Sarji bin Abdul Hamid (Chairman) Tan Sri Dato Dr. Wan Mohd. Zahid bin Mohd. Noordin Tan Sri Dato Md. Desa bin Pachi Dato Idris bin Kechot UOB Asset Management (Malaysia) Berhad (formerly known as UOB-OSK Asset Management Sdn Bhd) ( X) Messrs. Ernst & Young (AF:0039) Ernst & Young Tax Consultant Sdn Bhd ( K) Messrs. Zainal Abidin & Co. The Fund s investment strategy does include temporary defensive positions to protect investor from significant losses. The EIM,upon approval from ICM of AMBETF, will execute temporary defensive positions in dealing with adverse market conditions, unstable economic situation, political upheaval and other external factors affecting market. In this regard, the Fund may hold cash at higher level than what is prescribed in the asset allocation. It may also invest into cash equivalent instruments as the main asset of the Fund to maintain low volatility. When there is excessive gains during best market scenario, AMBETF shall realise as much profits from the portfolio holdings. This will be reflected as income to the Fund. With that higher income distribution can be declared. KEY RISKS General Risk 1. Market risk 2. Non-compliance risk 3. Inflation risk 4. Liquidity risk 5. Fund management risk 6. Operational risk 7. Returns not guaranteed 8. Loan financing risk 9. Force majeure risk (Source :MasterProspectus for Conventional Fund Section 4) 3 Updated as at September 2014

4 Potential risks associated with AMBETF As the Fund invests only in securities of companies which comply with the ethical principles, certain securities which may provide bettergrowth potential but do not comply with the ethical principles are therefore excluded in the portfolio. Hence, the returns of the Fund may be limited when compared to a Fund that has no investment restrictions. Other risks associated with the Fund are as below: - Individual equity risk AMBETF is subject to the volatility of prices in the share market. The volatility of prices in each stock will affect the Fund s value daily. The performance of individual stocks, which make up the portfolio, will fluctuate according to changes in the market value of the investments. The fluctuations can be significant in the short-term. This accounts for the market risk when investing in this Fund. However, this impact is minimised through portfolio diversification. Credit risk AMBETF invests in fixed income securities, so its portfolio is subject to credit risk. This is the risk that the issuer of the security may default and not be able to make timely principal and interest payments on the security. The lower-rated corporate debt securities will normally have greater risk of defaults. Interest rate risk Fixed income securities are particularly sensitive to movements in interest rates. When interest rates rise, the value of fixed income securities falls and vice versa, thus affecting the NAV of the Fund. Furthermore, fixed income securities with longer maturity and lower yield coupon rates are more susceptible to interest rate movements. FEES, CHARGES& GST This table describes the charges that you may directly and indirect incur when you purchase or repurchase units of the fund. Manager / Distribution Channel (% of NAV per Unit) Fund Maximum Sales Charges 1 Repurchase Charge Annual Management Fee (% of NAV) 2 Annual Trustee Fee (% of NAV) 2 AMBETF 6.5 Nil The sales charge for investments under the EPF s Members Investment Scheme shall not exceed 3% of NAV per unit, as regulated by EPF. Kindly refer to the Manager for the eligibility status of classes of AMBDA approved by EPF for investment. Note : 1. The sales charge is negotiable, subject to the Manager s discretion. 2. Annual management fee and annual trustee fee are calculated as the percentage of the NAV of the fund, calculated on a daily basis before deducting the fees for the day. 3. Subject to a minimum fee of MYR 18,000 per annum calculated on a daily basis. Good and Service Tax (GST) Effective 1 April 2015, the GST will be implemented to replace the sales tax and service tax regime at a rate of 6%. Unit Holders will be subjected to GST based on the Industry Guide on Fund Management ( Draft GST guide ) issued by the Royal Malaysian Customs Department on 27 October 2013 on the following expenses:- any fee based charges in relation to purchase of Units such as sales charge; and switching and transfer charges for switching or transferring Units. However, please note the Draft GST Guide may be revised upon implementation. 4 Updated as at September 2014

5 Table for switching charges for AMBETF(Equity) to other funds of AMB Switching charges The charges for switching are set out below: To target fund Switching from AMBETF Equity Bond/Sukuk Balance RM25 per transaction MYR25 per transaction MYR25 per transaction Money Market Nil Distribution units of conventional funds cannot be switched into Shariah funds as it is not permitted under the Shariah perspective. However the principal amount of conventional funds is allowed to be switched into Shariah funds. Note: The above table is applicable for all switching transactions, except where the sales charge of the fund to be switched into is equal or lower than the sales charge of the fund switched from, in which case the switching fee shall be RM25 only. Other annual operating expenses The auditor s fees, tax agents fee and other relevant professional fees; the costs of printing and distribution of annual and interim reports, tax vouchers and warrants; cost of modification of the Deed other than those for the benefit 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. VALUATIONS AND EXITING FROM INVESTMENT The valuation of Units is based on the NAV of the Fund and is calculated at the end of the Business Day. The NAV per unit of AMBETF is available on our website ( AMB s office or any of its Distribution Channels. 1.Pricing of units The Manager adopts the single pricing policy in calculating your investment. Single pricing equates to prices quoted and transacted on a single price. The price of Units is computed on a Forward Pricing basis. As such, Units of the Fund are transacted at the NAV per Unit at the next Valuation Point after receipt of the transaction request and acceptance by the Manager. Consequently, any changes in the underlying assets of the Fund will cause its Unit prices to vary. 2.Procedure to Repurchase Units Repurchase of Units can also be made in part or entirety at any time by completing the repurchase form, which can be obtained at AMB s office or any Distribution Channels. Below are the required documents/forms to be submitted to repurchase Units: (a) Individual investor (single or joint applicants) i. Completed repurchase form. ii. Photocopy of identity card, birth certificate (if joint applicant is a minor) or passport (if necessary). (b) Corporate investor i. Completed repurchase form. ii. Board resolution or any other necessary authorisation (if necessary). 5 Updated as at September 2014

6 Partial repurchase of Units is permitted provided the applicable minimum holding is maintained for the Fund. There is no restriction on frequency of repurchase and number of Units a Unit Holder can redeem subject to the applicable minimum holding. The Manager may elect not to permit a partial repurchase if the effect thereof would be that the Unit Holder holds less than the minimum holding applicable. 3. Payment for Repurchase of Units (a) By cheque Unit Holders will receive withdrawal proceeds payment by cheque payable to the Unit Holder's or jointholders' names only. The cheques will be mailed to the address of the Unit Holders based on the application form or as may be subsequently notified in writing to the Manager. Any charges incurred such as charges for outstation cheque will be borne by the Unit Holders. (b) Transfer to a bank account Unit Holders may give AMB an instruction in writing to transfer the repurchase proceeds to Unit Holders' nominated local bank account held in Unit Holders' own name. All bank charges for the transfer will be borne by the Unit Holders. The charge will be deducted from the repurchase amount before being paid to the Unit Holders relevant bank account. Unit Holders are required to provide AMB with the relevant bank account details in order for AMB to proceed with the transfer request. It is possible for delays in the banking system to occur which are beyond our control. If the funds cannot be transferred,amb shall draw a cheque payable to the Unit Holders. Unit Holders may give AMB instruction in writing to transfer the repurchase proceeds to the Unit Holders' nominated bank accountoverseas held in Unit Holders' own name. All bank charges for the transfer will be borne by the Unit Holders. The charge will bededucted from the repurchase amount before being paid to the Unit Holders relevant bank account. Note: No repurchase proceeds will be paid in cash under any circumstances. 4. Unit Pricing & Cut-off Time for Repurchase of Units Applications to repurchase Units will be processed on the same Business Day if received by 2.30 p.m. The applicable repurchase price would be based on the NAV per Unit at the end of the Business Day on which the application to purchase is received by the Manager. Any application received or deemed to have been received after this cut-off time would be considered as being transacted on the next Business Day and would be subjected to the Manager s pricing on the next Business Day. The Manager will pay the net repurchase proceeds to the Unit Holder or the Unit Holder s EPF account (where applicable) within 10 days from the receipt of the request to repurchase provided that all documentation are complete. In the event of any technical difficulties beyond the Manager s control or should the redemption request result in the sale of assets which cannot be liquidated at an appropriate price or on adequate terms and is as such not in the interest of the existing Unit Holders, redemption monies may be paid at such other period as may be permitted by the relevant authorities from time to time. 6 Updated as at September 2014

7 CONTACT INFORMATION 1. For any enquires and / or complaint (internal dispute resolution), you may contact: (a) AMB Client Services via Tel : Fax : / ambcare@pnb.com.my Or you may also file your dispute at our premise: Amanah Mutual Berhad 34th Floor Menara PNB 201-A JalanTunRazak Kuala Lumpur (b) Distribution Channels Please refer to Section 20 of the Master Prospectus for Conventional Fund for details on the appointed Distribution Channels. Alternatively, you may also visit AMB s website at 2. If you are dissatisfied with the outcome of the internal dispute resolution process, please refer your dispute to the SecuritiesIndustries Dispute Resolution Corporation (SIDREC): (a) via phone to : (b)via fax to : (c)via to : info@sidrec.com.my (d)via letter to : Securities Industry Dispute Resolution Center (SIDREC) Unit A-9-1, Level 9, Tower A Menara UOA Bangsar No. 5, JalanBangsarUtama Kuala Lumpur 3. You can also direct your complaint to the Securities Commission 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 3 Persiaran Bukit Kiara Bukit Kiara Kuala Lumpur 7 Updated as at September 2014

8 APPENDIX : GLOSSARY AMB or Manager AMBETF or the Fund Bursa Malaysia Currency Business Day(s) Deed Distribution Channel Ethical Panel of Advisors EPF External Investment Manager or EIM Forward Pricing FBM EMAS Index Amanah Mutual Berhad ( U). AMB Ethical Trust Fund. The Malaysian stock exchange, operated and maintained by Bursa Malaysia Securities Berhad ( W). The base currency of the Fund i.e MYR (Malaysian Ringgit). A day on which the Bursa Malaysia is open for trading in securities. The deed including any supplementary deed between the Manager, the Trustee and the Unit Holders for the Fund. An institution, corporation or an organisation that is appointed by AMB for the purpose of marketing and distributing the Fund inside and outside Malaysia as allowed by the applicable laws. Details are provided in Master Prospectus for Conventional Funds dated 17th September 2014 on Section 20 page 163. The Panel of Advisor appointed by the Manager for AMBETF. Employees Provident Fund. The external investment manager of the fund, UOB Asset Management (Malaysia) Berhad (formerly known as UOB-OSK Asset Management Sdn Bhd) ( X). 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 Index. Investment Committee or IC Liquid Assets NAV NAV of the Fund Quantshop MGS Medium Index SC or Securities Commission The investment committee of the Fund which is primarily responsible for formulating, implementing and monitoring the investment management strategies of the Fund in accordance with the investment objectives of the Fund. Financial assets with characteristics including, but not limited to, the following: (i) easily convertible in large sums into cash at short notice; (ii) low counter party credit risks; and (iii) have sufficiently deep secondary market which continues to exist during tightliquidity situations. (Source: Bank Negara Malaysia Liquidity Framework 1998) Net asset value. 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. Quantshop MGS Bond Index (Medium 3-7). Securities Commission Malaysia. 8 Updated as at September 2014

9 Unit Holder(s) Units Units in Circulation or UIC Valuation Point A person or persons registered as holder(s) of Units of any Fund and whose name(s) appear(s) in the register of Unit Holders. Units of any Fund. Units of the Fund created and fully paid. Such time(s) on a Business Day as may be decided by the Manager wherein the NAV of the Fund is calculated. Under normal circumstances, only one (1) valuation is conducted on each Business Day. 9 Updated as at September 2014