UNITED BOND & EQUITY STRATEGIC TRUST (the Fund )

Transcription

1 UNITED BOND & EQUITY STRATEGIC TRUST (the Fund ) PRODUCT HIGHLIGHTS SHEET This Product Highlights Sheet only highlights the key features and risks of this Fund. Investors are advised to request, read and understand the Prospectus before deciding to invest. RESPONSIBILITY STATEMENT This Product Highlights Sheet has been reviewed and approved by the directors of UOB Asset Management (Malaysia) Berhad (formerly known as UOB-OSK Asset Management Sdn 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, 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 ( SC ) has authorised the issuance of UNITED BOND & EQUITY STRATEGIC TRUST and a copy of this Product Highlights Sheet has been lodged with the Securities Commission Malaysia. The authorisation of the UNITED BOND & EQUITY STRATEGIC TRUST and lodgement of this Product Highlights Sheet, should not be taken to indicate that the Securities Commission Malaysia recommends the UNITED BOND & EQUITY STRATEGIC TRUST 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 UOB Asset Management (Malaysia) Berhad (formerly known as UOB-OSK Asset Management Sdn Bhd) who is responsible for the UNITED BOND & EQUITY STRATEGIC TRUST 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. 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. Page 1 of 6 Date: 8 September 2014

2 BRIEF INFORMATION ABOUT THE FUND UNITED BOND & EQUITY STRATEGIC TRUST (the Fund ) seeks to provide income and capital appreciation over the Medium to Long Term by investing in equities and fixed income securities. The Fund is managed by UOB Asset Management (Malaysia) Berhad (formerly known as UOB-OSK Asset Management Sdn Bhd) (the Manager ) and the Fund is not a capital protected fund nor a capital guaranteed fund. PRODUCT SUITABILITY The Fund is suitable for investors who: seek an investment that provides income and capital appreciation; have a moderate risk tolerance; and want to have investment exposure in Malaysia and to a lesser extent in the Asia Pacific region excluding Japan. The Fund will not be offered for sale in the United States of America, its territories or possessions and all areas subject to its jurisdiction, or U.S. Person(s), except in a transaction which does not violate the securities laws of the United States of America. Accordingly, investors may be required to certify that they are not U.S. Person(s) before making an investment in the Fund. KEY PRODUCT FEATURES What am I investing with? Fund Category Fund Type Investment Objective Investment Strategy Balanced Income & Growth The Fund is seeks to provide income and capital appreciation over the Medium to Long Term by investing in equities and fixed income securities. The Manager seeks to achieve the investment objective through a policy of diversified investment in equities, equity-related securities (i.e. warrants), fixed income securities, money market instruments and placement of Deposits with financial institutions. This Fund will generally adopt a balanced asset allocation by investing 50% of its NAV in equities and the remaining 50% in fixed income securities. The Fund is actively managed and the asset allocation would vary from time to time subject to the asset allocation limits. The allocation decision is based on the judgement of the Manager as to the general market and economic conditions, trends and yields, interest rates and changes in fiscal and monetary policies, among other factors. The Fund will generally be investing in Malaysia; however, where the investment opportunity is attractive, the Manager may invest up to 50% of the Fund s NAV in equities and/or fixed income securities traded and/or listed in the Asia Pacific region (excluding Japan), which includes but is not limited to Australia, Hong Kong, New Zealand, Singapore, South Korea, Taiwan, Philippines, Indonesia and Thailand. As the Fund s investments may be denominated in foreign currencies, the Fund may use financial derivatives instruments such as options, futures contracts, forward contracts and swaps for the purpose of hedging where necessary, to reduce the Fund s exposure to foreign exchange fluctuations. Asset Allocation 40% - 60% of the Fund s NAV in equities and equity-related securities (i.e. warrants); and 40% - 60% of the Fund s NAV in fixed income securities, money market instruments and placement of Deposits with financial institutions. Performance 50% FTSE Bursa Malaysia KLCI Index; and Page 2 of 6 Date: 8 September 2014

3 Benchmark 50% RAM Quantshop Medium MGS Index. Launch Date 8 September 2014 Financial Year 31 March Offer Period 8 September 2014 to 28 September 2014 Offer Price RM Income Distribution Subject to the availability of income, distribution will be made at least once a Policy year. Distribution declared will be automatically reinvested into the Unit Holders accounts in the form of additional Units in the Fund at no cost. Who am I Investing with? Manager Manager s delegates Trustee Trustee s delegate (custodian) Tax advisers Auditors UOB Asset Management (Malaysia) Berhad (formerly known as UOB-OSK Asset Management Sdn Bhd)( UOBAM(M) ) Fund accounting and fund valuation functions: Deutsche Bank (Malaysia) Berhad Registrar and transfer agency functions: Deutsche Trustees Malaysia Berhad Deutsche Trustees Malaysia Berhad Deutsche Bank (Malaysia) Berhad Ernst & Young Tax Consultants Sdn. Bhd. Ernst & Young Possible Outcomes Best case Mid case Worst case Income distribution and capital appreciation. No significant change in investment, i.e. no income distribution and no capital appreciation. Capital loss and no income distribution. KEY RISKS ASSOCIATED WITH THE FUND Equity risk Warrant risk Currency risk Liquidity risk Credit/default risk Interest rate risk Country risk Generally, equity risk may arise in the following forms, i.e., equity risks related to external factors and equity risks related to company-specific factors. All of these related equity risks can adversely affect the prices of equities, which would negatively impact the performance of the Fund. The price, performance and liquidity of warrants are typically linked to the underlying stock. However, the price and performance of such warrants will generally fluctuate more than the underlying stock because of the greater volatility of the warrants market. As such, the Fund s investment in warrants will be facing high volatility as well. This risk is associated with investments denominated in currencies different from the base currency of the Fund. When foreign currencies move unfavourably against the Ringgit Malaysia, these investments may face currency loss in addition to any capital gains or losses, which will affect the NAV of the Fund, and consequently the NAV per Unit of the Fund. Liquidity risk refers to the ease of liquidating an investment depending on the investment s volume traded in the market. This refers to the creditworthiness of the issuers of fixed income securities and/or money market instruments and its expected ability to make timely payment of interest and/or principal. This risk refers to the effect of interest rate changes on the market value of a portfolio of fixed income securities. In the event of rising interest rates, prices of fixed income securities will generally decrease and vice versa. The value of the assets of the Fund may also be affected by the economic and political climate, restriction on currency repatriation or other developments in the law or regulations of the countries in the Asia Pacific region excluding Japan in which the Fund may invest. Further, when investing in foreign markets, there are countries which may require prior approvals before investments can take place. Page 3 of 6 Date: 8 September 2014

4 Income risk distribution It should be noted that the distribution of income is not guaranteed. Circumstances preventing the distribution of income include, among others, unavailability of sufficient realised returns to enable income distribution as distribution of income may only be made from realised gains or realised income. Note: The abovementioned risks which investors should consider before investing into the 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 before investing. Please refer to the Prospectus under Risk Factors for further details on risks. FEES & CHARGES WITH THE FUND Management Fee Trustee Fee Sales Charge Redemption Charge Transfer Fee Switching Fee 1.50% per annum of the NAV of the Fund calculated and accrued on a daily basis. 0.07% per annum of the NAV of the Fund, subject to a minimum of RM15,000 per annum. Up to 5.00% of the Offer Price. Note: The Manager reserves the right to waive and/or reduce the sales charge or redemption charge from time to time at its absolute discretion. Investors may negotiate for a lower sales charge with our Institutional Unit Trust Advisers/distributors. Investment through the distributors shall be subject to their respective terms and conditions. Nil. RM15 per transfer, subject to the Manager s discretion. Nil. Unit Holders are subject to the terms and conditions of switching as set out in the Prospectus under Section 5.9, Switching Facility. 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 renewal 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. VALUATIONS AND EXITING FROM INVESTMENT How often are valuations available? The Fund will be valued daily. The NAV per Unit of the Fund is obtainable via the following, on a daily basis : Morningstar : The Star Online : Bloomberg : You may also contact the Manager at for the NAV per Unit of the Fund. How can I invest? Minimum initial investment Minimum additional investment Submission of application Cut-off time RM1,000 or such other lower amount as the Manager may from time to time decide. RM100 or such other lower amount as the Manager may from time to time decide. Monday Friday (except public holiday). By 4.00p.m. on a business day. Page 4 of 6 Date: 8 September 2014

5 How can I redeem? Minimum withdrawal Minimum holding Submission of withdrawal request Cut-off time Payment of withdrawal proceeds Cooling-off period and right 1,000 Units or such other lesser Units as the Manager may from time to time decide. 1,000 Units. Monday Friday (except public holiday). By 4.00p.m. on a business day. Redemption proceeds shall be paid within ten (10) days from the day on which the redemption requests are deemed received. Six (6) Business Days from the date of receipt of the application to purchase Units. A cooling-off right is only given to Unit Holders who are investing for the first time in any unit trust funds managed by the Manager. Corporations, institutions, staff of the Manager and persons registered with a body approved by the SC to deal in unit trust funds are not entitled to a cooling-off right. Business Day APPENDIX: GLOSSARY means a day on which Bursa Malaysia is open for trading. Deposits Initial Offer Period Medium to Long Term Net Asset Value (NAV) The Manager may declare certain Business Days to be a non-business Day if the Fund s investment in foreign markets which are closed for business is at least 50% of the Fund s NAV. This is to ensure investors are given a fair valuation of the Fund when making subscription or redemption. means current deposits and/or fixed deposits. a period when the Manager first invites potential investors to participate in the Fund by subscribing for Units in the Fund; during this period, Units are created, cancelled, sold and redeemed at the Offer Price. means a period of at least three (3) years. means 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 the trustee fee for the relevant day. NAV per Unit means the NAV of the Fund divided by the number of Units in circulation at the valuation point. Offer Price means a fixed price payable by an applicant for Units during the Initial Offer Period. Prospectus means the first prospectus for the Fund dated 8 September Unit(s) Unit Holder(s) U.S. (United States) Person(s) refers to an undivided share in the beneficial interest and/or right in the Fund and a measurement of the interest and/or right of a Unit Holder in the Fund and means a Unit of the Fund. means the person registered as the holder of a Unit or Units including persons jointly registered. means: a) a U.S. citizen (including dual citizen); b) a U.S. resident alien for tax purposes; c) a U.S. partnership; d) a U.S. corporation; e) any estate other than a non-u.s. estate; f) any trust if: i) a court within the U.S. is able to exercise primary supervision over the administration of the trust; and ii) iii) one or more U.S. Persons have the authority to control all substantial decisions of the trust; and any other person that is not a non-u.s. person. Page 5 of 6 Date: 8 September 2014

6 FOR FURTHER INFORMATION OR TO LODGE A COMPLAINT: For enquiries/further information, please contact: Marketing Department UOB Asset Management (Malaysia) Berhad (formerly known as UOB-OSK Asset Management Sdn Bhd) Level 22 Vista Tower The Intermark 348 Jalan Tun Razak Kuala Lumpur Malaysia Tel : Fax : For lodging a complaint, please contact the Compliance Officer at the same address/telephone/fax number above. If you are dissatisfied with the outcome of the dispute resolution process with the Manager, please refer your dispute to the Securities Industry 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 Kuala Lumpur 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 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 Kuala Lumpur Page 6 of 6 Date: 8 September 2014