PRODUCT HIGHLIGHTS SHEET. for. Affin Hwang Select Asia Pacific (ex Japan) REITs and Infrastructure Fund

Transcription

1 PRODUCT HIGHLIGHTS SHEET for Affin Hwang Select Asia Pacific (ex Japan) REITs and Infrastructure Fund RESPONSIBILITY STATEMENT This Product Highlights Sheet has been reviewed and approved by the directors or authorized committee or persons approved by the Board of Affin Hwang Asset Management Berhad ( T) and they collectively and individually accept full responsibility for the accuracy of the information. Having made all reasonable inquiries, they confirm to the best of their knowledge and belief, there are no false or misleading statements, or omission of other facts which would make any statement in the Product Highlights Sheet false or misleading. STATEMENT OF DISCLAIMER The Securities Commission Malaysia has authorised the issuance of Affin Hwang Select Asia Pacific (ex Japan) REITs and Infrastructure Fund ( the Fund ) and a copy of this Product Highlights Sheet has been lodged with the Securities Commission Malaysia. The authorisation of the Fund and lodgement of this Product Highlights Sheet, should not be taken to indicate that the Securities Commission Malaysia recommends the Fund or assumes responsibility for the correctness of any statement made or opinion or report expressed in this Product Highlights Sheet. The Securities Commission Malaysia is not liable for any non-disclosure on the part of the Affin Hwang Asset Management Berhad ( T) responsible for the Fund and takes no responsibility for the contents of this Product Highlights Sheet. The Securities Commission Malaysia makes no representation on the accuracy or completeness of this Product Highlights Sheet, and expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of its contents. 1

2 This Product Highlights Sheet only highlights the key features and risks of this Fund. Investors are advised to request, read and understand the Master Prospectus of the Fund before deciding to invest. PRODUCT HIGHLIGHTS SHEET AFFIN HWANG SELECT ASIA PACIFIC (EX JAPAN) REITs AND INFRASTRUCTURE FUND 1. What is this product about? BRIEF INFORMATION ON THE PRODUCT Affin Hwang Select Asia Pacific (ex Japan) REITs and Infrastructure Fund is an open-ended mixed assets fund, issued and managed in-house by the Manager. The Fund is an income and growth based fund that seeks to provide both income and capital appreciation over the medium to long-term by investing in equity or Equity-linked Securities of companies involved in infrastructure-related businesses, as well as real estate investment trusts (REITs), in the Asia Pacific (ex Japan). 2. Who is this product suitable for? PRODUCT SUITABILITY The Fund is designed for retail investors who have a medium to long-term investment horizon, seeks potential long-term income and capital growth and are risk tolerant. 3. What am I investing in? Launch Date 25 April 2007 Tenure Investment Strategy Asset Allocation KEY PRODUCT FEATURES This Fund is an open-ended fund where it does not have a fixed maturity date and may only be terminated in accordance with the terms of the Master Prospectus and the provisions of the Deed. To achieve the objective of providing both income and capital appreciation in the medium to long-term, the Fund will invest in equity or Equity linked Securities of companies involved in infrastructure related businesses, as well as real estate investment trusts (REITs), in the Asia Pacific (ex Japan) region. The Manager intends to focus on the equity and Equity linked Securities in the infrastructure sector with a minimum investment of 50% of the Fund s NAV. The Fund will also invest a minimum of 20% of its NAV into REITs. Equities and Equity-linked Securities REITs listed or traded on a regulated market Money market instruments and liquid assets Minimum 50% Minimum 20% Maximum 30% The Manager will also maintain a sufficient level of cash for liquidity purposes. 2

3 Distribution Policy Minimum Initial Investment* Minimum additional Investment* Minimum units held* The Fund endeavours to distribute income, where applicable, on an annual basis after the first financial year of the Fund. However, the amount available for distribution may fluctuate from time to time. RM1,000 RM Units 4. Who am I investing with? Relevant parties information: Note: Please refer to the Fund s Master Prospectus for further details of the Fund. The Manager Manager s Delegate (Fund Accounting and Valuation Agent) The Trustee Trustee s Delegate (Custody Services) Auditor / Reporting Accountants Tax Adviser Solicitor Affin Hwang Asset Management Berhad HSBC (Malaysia) Trustee Berhad HSBC (Malaysia) Trustee Berhad The Hong Kong and Shanghai Banking Corporation Limited (as Custodian) and assets held through HSBC Nominees (Tempatan) Sdn Bhd (Local custodian) HSBC Institutional Trust Services (Asia) Limited (Foreign custodian) PricewaterhouseCoopers Ernst & Young Tax Consultants Sdn Bhd Wei Chien & Partners 5. What are the possible outcomes of my investment? This is a mixed assets fund that invests in a portfolio of Asia Pacific (ex Japan) equities or equity-linked securities, as well as in real estate investment trusts (REITs). The performance of the Fund would be dependent on the domestic and foreign REITs, and equities market that are investable by the Fund. The Fund s performance is reliant on the Manager s expertise in managing the Fund to meet its objective. The Fund s investment into REITs could potentially provide you with dividend yield which generates income. However, the Fund s investment into REITs does not provide a guarantee on capital contributed nor does it guarantee a fixed rate of return. The Fund s investment into equities and equity-linked securities would to a great extent, be linked to the price movements of the domestic and/or foreign equity markets. If the equities and equity-linked securities that are investable by the Fund perform well, the Fund s performance may reflect the same. However, should the equities and equity-linked securities that are investable by the Fund perform poorly, the Fund s performance may also be impacted negatively. * subject to change at the Manager s discretion 3

4 The Fund endeavours to distribution, if any, on an annual basis. However, due to investments in equities, the Manager expects the Fund to yield incidental growth in capital. Please note that the capital and returns of the Fund are not guaranteed. KEY RISKS 6. What are the key risks associated with this product? General risks Operational risk This risk refers to the possibility of a breakdown in the Manager s internal controls and policies. The breakdown may be a result of human error, system failure or may be fraud where employees of the Manager collude with one another. This risk may cause monetary loss and/or inconvenience to you. Market risk This risk arises due to the factors that affect the entire market place. Factors such as economic growth, political stability and social environment are some examples of conditions that have an impact on businesses, whether positive or negative. Fund management risk This risk refers to the day-to-day management of the Fund by the Manager which will impact the performance of the Fund. For example, investment decisions undertaken by the Manager as a result of an incorrect view of the market or any non-compliance with internal policies, investment mandate, the Deed, relevant law or guidelines due to factors such as human error, fraudulent, dishonesty or weaknesses in operational process and systems, may adversely affect the performance of the Fund. Performance risk - There is no guarantee in relation to the investment returns or on the distribution to Unit Holders. Inflation risk This is the risk that your investment in the Fund may not grow or generate income at a rate that keeps pace with inflation. This would reduce your purchasing power even though the value of the investment in monetary terms has increased. Liquidity risk Liquidity risk refers to two scenarios. The first is where an investment cannot be sold due to unavailability of a buyer for that investment. The second scenario exists where the investment, by its nature, is thinly traded. This will have the effect of causing the investment to be sold below its fair value which would adversely affect the NAV of the Fund. Loan financing risk - This risk occurs when you take a loan/financing to finance your investment. The inherent risk of investing with borrowed money includes you being unable to service the loan repayments. In the event Units are used as collateral, you may be required to top-up your existing instalment if the prices of Units fall below a certain level due to market conditions. Failing which, the Units may be sold at a lower NAV per Unit as compared to the NAV per Unit at the point of purchase towards settling the loan. Currency risk - Investments of the Fund in any countries may be affected by changes in the economic and political climate, restriction on currency repatriation or other developments in the law or regulations of the countries in which the Fund invests in. For example, the deteriorating economic condition of such countries may adversely affect the value of the investments undertaken by the Fund in those affected countries. This in turn may cause the NAV of the Fund or prices of Units to fall. Country risk The foreign investment of a Fund may be affected by risks specific to the country which it invests. Such risks include changes in a country s economic fundamentals, social and political stability, currency movements and foreign investment policies etc. These may have an adverse impact on the prices of securities of listed companies. Risk of non-compliance - This refers to the risk where the Manager does not comply with laws, rules, regulations, internal policies or the Deed. Whilst not every breach or non-compliance will necessarily result in some losses to the Fund, however, there is always a risk that losses may be suffered by the Fund. Note: Please refer to section 4.1 of the Master Prospectus for further detail of each risk. 4

5 Specific risks Industry Concentration & Infrastructure Industry risk Given the concentration of the Fund s exposure to the infrastructure industry, the Fund will be more susceptible to adverse economic or regulatory occurrences affecting that industry than an investment fund that is not concentrated in a single industry. Infrastructure issuers, including utilities and companies involved in infrastructure projects, may be subject to a variety of factors that may adversely affect their business or operations, including high interest costs in connection with capital construction programs, high leverage, costs associated with environmental and other regulations, the effects of economic slowdown, surplus capacity, increased competition from other providers of services, uncertainties concerning energy costs (among other things), the effects of energy conservation policies and other factors. Equity investment risk The risk associated with investing in a particular equity. The value of an equity investment depends on its growth and earnings potential, sound management, treatment of minority shareholders, as well as a myriad of other factors. Failure to achieve the expected earnings would result in declining investment value which in turn affects the performance of the unit trust. Equity-linked Instruments or Equity-linked Securities investment risk The pricing of Equity-linked Instruments or Equity-linked Securities will depend on the underlying equities that it is linked to, such as the growth and performance prospect of the underlying equities would consequentially affect the pricing of the Equity-linked Instruments or Equity-linked Securities. Credit and default risk Credit risk relates to the creditworthiness of the issuers of the investment (fixed income instruments and money markets instruments) and their expected ability to make timely payment of interest and/or principal. Any adverse situations faced by the issuer may impact the value as well as liquidity of the investment. In the case of rated investments, this may lead to a credit downgrade. Default risk relates to the risk of an issuer of the investment either defaulting on payments or failing to make payments in a timely manner which will in turn adversely affect the value of the investment. This could adversely affect the value of the Fund. Structured Products risk The NAV of the Fund will be impacted by the valuation of the structured product. Factors that may impact the valuation of the structured products will include, but not be limited to movement of the underlying asset, volatility of the underlying assets, interest rate levels, the correlation of the underlying assets and other such factors. Any change in the aforesaid factors would either positively or negatively impact the valuation of the structured products hence impacting the NAV of the Fund. As such, the Fund s NAV will be exposed to potential price volatility, which will be dependent on the valuation of the structured products that the Funds invested in. Emerging markets risk Macro-economic risk is generally higher in the emerging markets as these countries are still at a relatively early stage of development (e.g. inflation, currency devaluation; fiscal problems). Selected emerging markets may have greater sensitivity to external shocks (e.g. commodity prices, capital flows and the state of the global and regional economies) as their financial markets have yet to reach a mature stage of development. Country risk Investments of the Fund in any countries may be affected by changes in the economic and political climate, restriction on currency repatriation or other developments in the law or regulations of the countries in which the Fund invests. For example, the deteriorating economic condition of such countries may adversely affect the value of the investments undertaken by the Fund in those affected countries. This in turn may cause the NAV of the Fund or prices of Units to fall. Currency risk investments are denominated may have an impact on the value of these investments. You should note that any gains or losses arising from the fluctuation in the exchange rate may further increase or decrease the returns of the investment. Regulatory risk - The investments of the Fund would be exposed to changes in the laws and regulations in the countries the Fund is invested in. These regulatory changes pose a risk to the Fund as it may materially impact the investments of the Fund. Counterparty risk - Counterparty risk concerns the Fund s investment in structured products that include, but not limited to, equity-linked notes. Counterparty risk is prevalent as the potential returns derived from the Fund s investment in structured products are dependent on the ongoing ability and willingness of the issuer i.e. a financial institution to fulfill their respective financial commitments to the Fund in a timely manner. Bankruptcy, fraud or regulatory non-compliance arising out of and/ or in connection with the issuer may impair the operations and/or the performance of the Fund 5

6 Note: Please refer to section 4.2 of the Master Prospectus for further detail of each risk. It is important to note that events affecting the investments cannot always be foreseen. Therefore, it is not always possible to protect investments against all risks. The various asset classes generally exhibit different levels of risk. The investments of the Fund carry risks and you are recommended to read the whole Master Prospectus to assess the risks of the Fund. If necessary, you should consult your professional adviser(s) for a better understanding of the risks. 7. What are the fees and charges involved? FEES & CHARGES There are fees and charges involved and you are advised to consider them before contributing to the Fund. What will I be charged by the Manager? Sales charge Repurchase charge Switching fee Transfer fee Up to 5.50% on the NAV per Unit of the Fund Nil Nil RM5.00 per transfer What are the key ongoing fees charged to the Fund? Management fee Trustee fee Up to 1.80% per annum of the NAV of the Fund. Up to 0.08% per annum (including local custodian fee but excluding foreign subcustodian fee) of the NAV of the Fund. Note: Please refer to the Master Prospectus for further explanation and illustration of the Fund s fees, charges and expenses. ALL FEES, CHARGES AND EXPENSES ARE EXCLUSIVE OF GOODS AND SERVICES TAX. WE (INCLUDING THE TRUSTEE AND/OR OTHER SERVICE PROVIDERS) WILL CHARGE GOODS AND SERVICES TAX AT THE PREVAILING RATE OF 6% ON THE ABOVEMENTIONED FEES, CHARGES AND EXPENSES IN ACCORDANCE WITH THE GOODS AND SERVICES TAX ACT How often are valuations available? VALUATIONS AND EXITING FROM INVESTMENT The Fund will be valued on every Business Day and you may obtain NAV and prices of the Fund from our website at our customer service via our toll free number or to customercare@affinhwangam.com. 9. How can I exit from this investment and what are the risks and costs involved? You may request to redeem your investments in the Fund at any point in time by completing the repurchase application form and returning it to the Manager on any Business Day between 8.45 a.m. and 3.30 p.m. Payments will be made to you within 10 days from the day the repurchase request is received by the Manager and provided that all documentations are completed and verifiable. 6

7 CONTACT INFORMATION 10. Who should I contact for further information or to lodge a complaint? 1. For internal dispute resolution, you may contact our customer service personnel: (a) via phone : (b) via fax : (c) via toll free no. : (d) via customercare@affinhwangam.com (e) via letter : Affin Hwang Asset Management Berhad Ground Floor, Menara Boustead 69 Jalan Raja Chulan, Kuala Lumpur Complaints should be made in writing with the following information: (a) particulars of the complainant which include name, correspondence address, contact number, address (if any) and other relevant information; (b) circumstances of the non-compliance or improper conduct; (c) parties alleged to be involved in the improper conduct; and (d) other supporting documentary evidence (if any). 2. If you are dissatisfied with the outcome of the internal dispute resolution process, please refer your dispute to the following regulatory bodies, details of which are as follows: Federation of Investment Managers Malaysia (FiMM): (a) via legalcomp@fimm.com.my (b) via online complaint form : (c) via letter : Complaints Bureau Legal, Secretarial & Regulatory Affairs Federation of Investment Managers Malaysia , 6 th Floor, Wisma Tune No. 19, Lorong Dungun, Damansara Heights Kuala Lumpur OR Securities Industries Dispute Resolution Corporation (SIDREC): (a) via phone : (b) via fax : (c) via info@sidrec.com.my (d) via letter : 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 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 : (c) via aduan@seccom.com.my (d) via online complaint form available at (e) via letter : Investor Affairs & Complaints Department Securities Commission Malaysia No 3 Persiaran Bukit Kiara Bukit Kiara Kuala Lumpur 7

8 Bursa Malaysia Business Day Deed(s) / Master Deed Equity-linked Instruments or Equity-linked Securities the Fund Master Prospectus the Manager, we, us, our medium to long-term Net Asset Value or NAV NAV per Unit RM Sales Charge SC Unit(s) Unit Holder(s), investor(s), you Units in Circulation APPENDIX : GLOSSARY Means the stock exchange operated by Bursa Malaysia Securities Berhad including such other name as it may be amended from time to time. Means a day on which the Bursa Malaysia is open for trading. Means the master deed(s), deed(s), and supplpementary deed(s), if any, entered into between the Manager and the Trustee(s) including any supplemental and variation thereto. Refers to instruments or securities where the price movements are dependent on the performance of the underlying equities that the instruments or securities are linked to. Refers to Affin Hwang Select Asia Pacific (ex Japan) REITs and Infrastructure Fund. Means the Master Prospectus in respect of the following Funds: Affin Hwang Select Opportunity Fund; Affin Hwang Select Balanced Fund; Affin Hwang Select Bond Fund; Affin Hwang Select Income Fund; Affin Hwang Select Asia (ex Japan) Quantum Fund; Affin Hwang Select Asia (ex Japan) Opportunity Fund; Affin Hwang Select Asia Pacific (ex Japan) REITs and Infrastructure Fund; and includes any supplementary or replacement master prospectus, as the case may be. Refers to Affin Hwang Asset Management Berhad Means a period between three (3) to five (5) years. Means the value of the Fund s assets less the value of the Fund s liabilities at a particular valuation point except that, for the purpose of computing the annual management fee and the annual trustee fee, the NAV of the Fund should be inclusive (that is, before any deduction) of the management fee and the trustee fee for the relevant day; where a Fund has more than one Class of Units, there shall be a Net Asset Value of the Fund attributable to each Class of Units; the Net Asset Value of the Fund attributable to a Class of Units at a particular valuation point shall be the Net Asset Value of the Fund multiplied by the proportion that the number of Units in Circulation of that Class of Units bears to the number of Units in Circulation of the Fund at the same valuation point. Means the NAV of the Fund at a particular valuation point divided by the number of Units in Circulation at the same valuation point; where the Fund has more than one Class of Units, there shall be a Net Asset Value per Unit for each Class of Units; the Net Asset Value per Unit of a Class of Units at a particular valuation point shall be the Net Asset Value of the Fund attributable to that Class of Units divided by the number of Units in Circulation for that Class of Units at the same valuation point. Means Ringgit Malaysia, the lawful currency of Malaysia. Means a fee imposed pursuant to a purchase request. Means Securities Commission Malaysia established under the Securities Commission Malaysia Act Means a measurement of the right or interest of a Unit Holder in the Fund and where multiple Classes of Units are issued means a unit of that Class. Means the person / corporation registered as the holder of a Unit or Units including persons jointly registered. Means Units created and fully paid and which have not been cancelled. It is also the total number of Units issued at a particular valuation point. 8