PRODUCT HIGHLIGHTS SHEET PACIFIC CASH DEPOSIT FUND

Transcription

1 PRODUCT HIGHLIGHTS SHEET PACIFIC CASH DEPOSIT FUND RESPONSIBILITY STATEMENT This has been reviewed and approved by the directors or authorised committee or persons approved by the Board of Pacific Mutual Fund Bhd 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, that there are no false or misleading statements, or omission of other facts which would make any statement in the false or misleading. STATEMENT OF DISCLAIMER The relevant information and document in relation to the Pacific Cash Deposit Fund, including a copy of this Product Highlights Sheet has been lodged with the Securities Commission Malaysia, under the Lodge and Launch Framework. The lodgement of the relevant information and document in relation to the Pacific Cash Deposit Fund, including this Product Highlights Sheet, should not be taken to indicate that the Securities Commission Malaysia recommends the Pacific Cash Deposit 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 Pacific Mutual Fund Bhd responsible for the Pacific Cash Deposit Fund and takes no responsibility for the contents of this. The Securities Commission Malaysia makes no representation on the accuracy or completeness of this, and expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of its contents. PRODUCT HIGHLIGHTS SHEET This 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. 1. What Is This Product About? BRIEF INFORMATION ON THE PRODUCT Product Type Manager Trustee Unlisted wholesale fund (open-ended) Pacific Mutual Fund Bhd ( U) MTrustee Berhad ( V) PRODUCT SUITABILITY 2. Who Is This Product Suitable For? This Fund is suitable for sophisticated investors who: are conservative; seek regular income from cash deposits and prefer short to medium-term investment horizon; and seek capital stability with a high degree of liquidity. Unit prices and distributions payable, if any, may go down as well as up. PHS-PCDF 0918 l Page 1 of 6

2 KEY PRODUCT FEATURES 3. (a) What Am I Investing In? Fund Category Fund Type Base Currency Financial Year End Distribution Money Market (wholesale) Income Ringgit Malaysia (MYR) 31 December Issuance Date 30 August 2016 Issuance Price Distribution of income, if any, at least on a monthly basis. RM INVESTMENT OBJECTIVE The Fund aims to provide income, liquidity and stability of capital by investing in cash deposits. Any material changes to the Fund s objective would require unitholders approval. Income is in reference to the Fund s distribution, which will be in the form of cash or units. INVESTMENT STRATEGY The Fund will invest wholly in cash deposits with licensed financial institutions with maturities of not more than two years. Asset Allocation Up to 100% into cash deposits with maturities of not more than two years. Performance Benchmark Maybank Overnight Repo Rate 3. (b) Who Am I Investing With? Manager Trustee Auditors Tax Advisers Pacific Mutual Fund Bhd ( U) MTrustee Berhad ( V) Ernst & Young Ernst & Young Tax Consultants Sdn Bhd ( K) 4. What Are The Possible Outcomes Of My Investment? The quantum of potential returns of the Fund would depend on the maturity structure of the Fund and the prevailing interest rates for short-term deposits. This is a non-guaranteed Fund and the investor may not get back the full amount invested and the principal amount invested may be at risk. Returns are also not fixed or guaranteed. PHS-PCDF 0918 l Page 2 of 6

3 KEY RISKS 5. What Are The Key Risks Associated With This Product? The following are the risks associated with the Fund: Early termination of cash deposits risk This is the risk of the Fund having to terminate/withdraw from placements in cash deposits before the contractual maturity date due to redemptions from the Fund. As a result of the premature termination, there will be a loss of a percentage or even all the interests accumulated during the period of holding of cash deposits, resulting in loss of income to the Fund. To mitigate this risk, the Manager anticipates the potential percentage of the Fund that may experience redemptions and allocates maturities accordingly. For example, the Manager may ensure that there are sufficient tranches of cash deposits maturing weekly to meet any potential redemptions of the Fund. Reinvestment risk This is a risk that future proceeds (interest and/or capital) are reinvested at a lower interest rate. Reinvestment risk is especially evident during periods of falling rates where the interest payments (from existing placements) are reinvested at less than the interest rate at the time of purchase. To mitigate this risk, the Manager would seek to place cash deposits with licensed financial institutions offering competitive interest rates. Inflation or purchasing power risk This risk refers to the effect of inflation or loss of purchasing power on the value of investment returns and the worth of the investment itself. Investors returns from the Fund may not keep pace with inflation and hence reduce their purchasing power. Credit risk This risk refers to changes in the financial conditions of licensed financial institutions, which may affect their credit worthiness. This in turn may lead to default in the repayment/payment of principal and interest. These events can lead to loss of capital and/or delayed or reduced income for the Fund, resulting in a reduction in the Fund's asset value and thus unit price. This risk is mitigated by active credit analyses and diversification in placement of deposits with various licensed financial institutions. The investment manager exercises diligence in minimising the above risks to the Fund. However, it is not always possible to cover all investment risks in spite of best efforts as financial markets can be highly unpredictable. Investors are encouraged to consult their advisers such as financial/tax consultants, lawyers or bankers for a further understanding of these risks. 6. What Are The Fees And Charges Involved? FEES AND CHARGES Sales Charge Annual Management Fee Annual Trustee Fee Redemption Charge Switching Fee Transfer Fee There is no sales charge imposed on unitholders of the Fund. Up to 0.25% p.a. of the NAV of the Fund. The annual management fee is payable on a monthly basis. Up to 0.02% p.a. of the NAV of the Fund calculated and accrued on a daily basis. The annual trustee fee is payable on a monthly basis. There is no redemption charge imposed on unitholders of the Fund. There is no switching fee imposed on unitholders of the Fund. There is no transfer fee imposed on unitholders of the Fund. Despite the maximum fees and charges permitted by the deed, all current fees and charges are as disclosed above. All fees and charges quoted are subject to any applicable taxes and/or duties as may be imposed by the government or other authorities from time to time. PHS-PCDF 0918 l Page 3 of 6

4 7. How Often Are Valuations Available? VALUATIONS AND EXITING FROM INVESTMENT The valuation of NAV for the Fund will be conducted at the end of each business day. Daily prices of the Fund will be published on the next business day. Fund prices will be published in Pacific Mutual s website at 8. How Can I Exit From This Investment And What Are The Risks And Costs Involved? You can withdraw or redeem all or part of your units in the Fund, in writing, at any time provided the minimum number of units left in an account after the partial withdrawal is 500 units. Upon receipt of the duly completed and accepted original transaction form, which must reach Pacific Mutual s head office or its branches by 12:00 p.m. on any business day, we will repurchase the units at the Fund s NAV per unit calculated at the end of that business day. Payment will be made to you on the next business day. Any duly completed and accepted original transaction form received by Pacific Mutual s head office or its branches after 12:00 p.m. on any business day will be considered as being transacted on the next business day, payment will be made to you within two (2) business days from the date of receipt of the transaction form. We will repurchase the units at the Fund s NAV per unit calculated at the end of the next business day. CONTACT INFORMATION 9. Who Should I Contact For Further Information Or To Lodge A Complaint? Contact Details Of The Manager Head Office Branches Pacific Mutual Fund Bhd ( U) 1001, Level 10, Uptown 1, No. 1 Jalan SS21/58, Damansara Uptown, Petaling Jaya, Selangor Tel: Fax: ib.support@pacificmutual.com.my Website: Pulau Pinang Tel: Fax: penang@pacificmutual.com.my Perak Tel: Fax: ipoh@pacificmutual.com.my Sarawak Tel: Fax: kuching@pacificmutual.com.my Sabah Tel: Fax: kk@pacificmutual.com.my PHS-PCDF 0918 l Page 4 of 6

5 Please specify the nature of the complaint and the person(s) involved stating the date, time and place of occurrence. (i) For internal dispute resolution, you may contact: Pacific Mutual Fund Bhd Customer Care Hotline: (ii) If you are dissatisfied with the outcome of the internal dispute resolution process, please refer your dispute to the Securities Industries 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, Jalan Bangsar Utama 1, Kuala Lumpur (iii) You can also direct your complaint to the Securities Commission Malaysia even if you have initiated a dispute resolution process with SIDREC. To make a complaint, please contact the Securities Commission Malaysia 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 (iv) Federation of Investment Managers Malaysia (FIMM) s Complaints Bureau: (a) via phone to : (b) via fax to : (c) via to : aduan@seccom.com.my (d) via online complaint form available at (e) via letter to : Legal, Secretariat & Regulatory Affairs Federation of Investment Managers Malaysia , 6 th Floor Wisma Tune No. 19 Lorong Dungun, Damansara Heights Kuala Lumpur APPENDIX: GLOSSARY business day(s) A day (other than Saturdays, Sundays and public holidays) which banks in Kuala Lumpur are open for business. Fund Pacific Cash Deposit Fund licensed financial institution If the institution is in Malaysia: (i) licensed bank*; (ii) licensed investment bank*; (iii) licensed Islamic bank # ; or (iv) development financial institutions regulated under the Development Financial Institutions Act Note: * has the same meaning as prescribed under the Financial Services Act 2013 # a bank licensed under the Islamic Financial Services Act 2013 PHS-PCDF 0918 l Page 5 of 6

6 NAV Net asset value (NAV) of the Fund is the total value of the Fund s assets minus its liabilities at a valuation point. NAV per unit NAV per unit of the Fund is the NAV divided by the total number of units in circulation, at a particular valuation point. short term / medium term Short term below one year; medium term one year to three years. sophisticated investor Means any person who comes within any of the categories of investors as set out in Part 1, Schedule 6 and 7 of the Capital Markets and Services Act 2007 ( CMSA ). These would include (but are not limited to) the following: Accredited investors 1. a unit trust scheme, prescribed investment scheme or private retirement scheme; 2. a holder of a Capital Markets Services License; 3. an executive director or a chief executive officer of a holder of a Capital Markets Services License; 4. a closed end fund approved by the Securities Commission; 5. a bank licensee or insurance licensee as defined under the Labuan Financial Services and Securities Act 2010; 6. a licensed institution as defined in the Financial Services Act 2013; 7. an insurance company registered under the Financial Services Act 2013; or 8. Bank Negara Malaysia. High-net worth entities 1. a company that is registered as a trust company under the Trust Companies Act 1949 which has assets under management exceeding RM10 million or its equivalent in foreign currencies; 2. a corporation that is a public company under the Companies Act 1965 which is approved by the Securities Commission to be a trustee under the CMSA and has assets under management exceeding RM10 million or its equivalent in foreign currencies; 3. a corporation with total net assets exceeding RM10 million or its equivalent in foreign currencies based on the last audited accounts; 4. a partnership with total net assets exceeding RM10 million or its equivalent in foreign currencies; 5. a statutory body established by an Act of Parliament or an enactment of any State; or 6. a pension fund approved by the Director General of Inland Revenue under section 150 of the Income Tax Act High-net worth individual 1. an individual a. whose total net personal assets, or total net joint assets with his or her spouse, exceeds RM3 million or its equivalent in foreign currencies, excluding the value of the individual s primary residence; b. who has a gross annual income exceeding RM300,000 or its equivalent in foreign currencies per annum in the preceding 12 months; or c. who, jointly with his or her spouse, has a gross annual income exceeding RM400,000 or its equivalent in foreign currencies per annum in the preceding 12 months. unitholder The person for the time being who is registered pursuant to the deed as a holder of units, including a jointholder. PHS-PCDF 0918 l Page 6 of 6