Mutual Fund Prospectus SCB Asian Emerging Markets THB Hedge (SCBAEMH)

Transcription

1 Mutual Fund Prospectus SCB Asian Emerging Markets THB Hedge (SCBAEMH) SCBAEMH has the policy to focus on the investment in foreign mutual fund BGF Asian Growth Leaders Fund D2 USD shares class, domicile in Luxembourg and under UCITS. The master fund managed by BlackRock Global Funds. The investment policy of the master fund seeks to maximise total return. The Fund invests at least 70% of its total assets in the equitysecurities of companies domiciled in, or exercising the predominant part of their activity in Asia, excluding Japan. The Fund places particular emphasis on sectors and companies that, in the opinion of the Investment Adviser, exhibit growth investment characteristics, such as above-average growth rates in earnings or sales and high or improving returns on capital. This Fund has an average net exposure in investment units of the foreign mutual fund of the accounting year at or more than 80 % of the net asset value (NAV) of the Fund. Also, the Fund s investment results in having an average net exposure relates to foreign risks for the accounting year at or more than 80% of the Fund s NAV. SCBAEMH Fund is a fund that its investment units are classified into 3 classes, namely Accumulative Value Class, Autoredemption Class and Paid-dividend Class. For the best benefit of unitholders, the unitholders should thoroughly study information of each invesment unit class before making an investment. NAV per unit of each unit class may be equal or different the Management Company shall calculate the NAV per unit of each class separately. SCBAEMH will enter into the Derivatives with an aim to hedge the risk ( Hedging ) from the exchange rate in securities or properties in foreign currency held by the Fund when compared with THB in any period of time of not less than 90% of the properties invested in foreign country. The Fund may hedge the risk of exchange rate at other proportion according to the Fund Manager s discretion, Master fund and SCBAEMH may invest in the Derivatives for Efficient Portfolio Management (EPM), accordingly, the Fund may take risk higher than other mutual fund. Therefore, it is appropriate for the investors who wish to gain high return and can take risk more than general investors. The investors should invest in the Fund when understood the risk from the Derivatives and should consider the appropriateness of investment by taking the experience of investment, objectives of investment and their financial status into consideration. Investment in a form of Unit Linked Insurance Policy (Unit-Link) has some risks. The insured may receive a return of investment greater or less than the investment amount. In this regard, the investors should thoroughly study all information in detail contained in the sale document of the Unit-Link before making an investment. As the Fund has policy to gain the yield from the investment in Asia ex japan, therefore, the Fund takes Country Risk which is the risk in terms of politics, economy, society, market condition, liquidity, financial measure in the unusual event including any restriction of the country where the Fund invested. As a result, it affects the Fund s Net Asset Value ( NAV ) or the Fund may be unable to bring money back to the country, therefore, the investors may not receive the payment according to the due period of time. 1 SCB Asian Emerging Markets THB Hedge (SCBAEMH)

2 In case where SCBAEMH cannot maintain the liquidity as specified by the Securities and Exchange Commission ( the SEC ), the investors may be unable to redeem the investment units according to the redemption order. The investor should thoroughly study the information in this Prospectus until understands it and should keep it as the future reference and if there is any inquiry, The investor should inquire the Fund s contact person until understands it before purchases the investment units. The investment in the investment units is not the money deposit and there is the risk in the investment. The investor should invest in SCBAEMH when considering that the investment in the mutual fund is in line with investment objective and can accept the risk which may arise from the investment. In case of the unusual circumstance, the investor may receive the money from redemption later than the timeline specified in the Prospectus. For the maximum benefits of SCBAEMH ( Fund ) management, the Fund s offering of investment units, or a switch of investment units, or registration of investment unit transfer must be under the discretion of the Management Company solely. The Management Company reserves the right to accept/reject the offering of investment units, or accept/reject the switch of investment units, or accept/reject registration of investment unit transfer to any person. The persons whom the Management Company intends not sell the investment units or to accept the switch of investment units, or to reject the registration of investment unit transfer include but not limited to US citizens, persons whose domicile are in U.S.A., persons whose address are normally in U.S.A. including estate of such persons, and companies or partnerships where have been established and of which activities have been conducted in U.S.A. In case where the Management Company has any obligation or agreement with foreign states or has necessity to comply with the laws of foreign states, regardless of whether such obligations or agreements have been created at present or will be created in the future, for instance, the compliance with Foreign Account Tax Compliance (FATCA) of USA, etc., unitholders acknowledged and gave consent to the Management Company to take action to be in line with such obligation or agreement or the laws of foreign states, including the disclosure of information of unitholders, the deduction of the withholding tax of unitholders revenues. Moreover, the Fund also has the right to take any other action as necessary for compliance with such obligation or agreement or the laws of foreign states. 2 SCB Asian Emerging Markets THB Hedge (SCBAEMH)

3 Mutual Fund Information Project Name : SCB Asian Emerging Markets THB Hedged (SCBAEMH) Project Term : Indefinite Approval Date of Fund Project Establishment : 11 August 2017 Date of Initial Public Offering : August 2017 Investment Type Investment Type and Investment Policy of the Fund Foreign Investment Fund which has policy of investment in the investment units of only foreign mutual fund (Feeder Fund) which repurchases the investment units Policy of Mutual Fund SCBAEMH has the policy to focus on the investment in foreign mutual fund BGF Asian Growth Leaders Fund D2 USD shares class, domicile in Luxembourg and under UCITS. The master fund managed by BlackRock Global Funds. The investment policy of the master fund seeks to maximise total return. The Fund invests at least 70% of its total assets in the equitysecurities of companies domiciled in, or exercising the predominant part of their activity in Asia, excluding Japan. The Fund places particular emphasis on sectors and companies that, in the opinion of the Investment Adviser, exhibit growth investment characteristics, such as above-average growth rates in earnings or sales and high or improving returns on capital. This Fund has an average net exposure in investment units of the foreign mutual fund of the accounting year at or more than 80 % of the net asset value (NAV) of the Fund. Also, the Fund s investment results in having an average net exposure relates to foreign risks for the accounting year at or more than 80% of the Fund s NAV. For the remaining portion, the Asset Management Company may invest in equity or acquire the debt instruments convertible bond and/or deposit and/or certificate of deposit both in country and/or foreign countries and/or acquire other securities or properties and/or seek for any fruits by any other one or many means as announced and specified by the SEC or the Office of SEC. SCBAEMH may invest in the Derivatives for Efficient Portfolio Management (EPM) and/or hedging aim to gain higher benefit and/or decrease expense of the Fund. The Fund may invest in derivatives for hedging against investment risks, such as swap contracts and/or forward contracts referred to an exchange rate as announced, imposed, or approved by the Office of the SEC. SCBAEMH will enter into the Derivatives with an aim to hedge the risk ( Hedging ) from the exchange rate in securities or properties in foreign currency held by the Fund when compared with THB in any period of time of not less than 90% of the properties invested in foreign country. The Fund may hedge the risk of exchange rate at other proportion according to the Fund Manager s discretion, for instance, in case where the Baht currency against foreign currency held by the Fund has continuously devaluated or appreciated which may negatively affect the Fund, then, the Fund Manager may consider to adjust the proportion for hedging the risk as appropriate for the Fund s interest, etc. The Fund may do the transaction of securities lending or Reverse Repo transaction according to the rules and regulations specified by the Office of SEC 3 SCB Asian Emerging Markets THB Hedge (SCBAEMH)

4 Moreover both in country and foreign countries the Fund may invest in non-investment grade or the unrated or the unlisted. The Fund may invest in Structured Note. In this regard, for calculating the Fund s investment ratio relating to the foreign risks, the Management Company may not include a 30-day period as from the inception date. If the investment of the Master Fund is no longer appropriate, which may be affected by the situations or the changes of the conditions of the Master Fund, for instance, the change in the investment policy, the fund type and the fees; the investment or acquisition of any other property was contrary to the rules of the SEC; the Fund was unable to invest in the Master Fund because of the regulations relating to the domestic investment on which the Master Fund listed; the returns of the Fund were lower than the returns of other funds with similar investment policies in consecutive periods of time; the size of the Master Fund was reduced until it could impact the Fund; the investment of the Master Fund was not in conformity with the Prospectus or Project; the Master Fund violated the rules according to the opinion of the regulatory agency; the operation of the Fund was affected by the change of regulations or others; and any other changes that may affect or may cause damage to the Fund where the change may affect the Master Fund and/or the Asset Management Company, where the Company considered that the transfer of investment to invest in other foreign funds with similar policies had a positive outcome to overall performance of the Fund or facilitated the investment of the Fund in foreign countries and provided benefits to the Unitholders, the Company reserves the right to consider changing the Master Fund to other foreign funds at the discretion of the fund manager where such action would not conflict with the objectives and investment policy of the Fund. The Company also reserves the right to terminate SCBAEMH and it is deemed that the Unitholders have approved to do so, where the Company will take into account the interests of the Fund as principal aim. Moreover, the Company reserves the right to consider changing the Share Class and the currency or trading in other country at its discretion afterward and it is deemed that the Unitholders have approved to do so where the Company will take into account the interests of the Fund as principal aim. In case where the net asset value of the Master Fund decreases in any forms of the following, the Asset Management Company will perform in accordance with the rules and methods determined by the SEC: (1) The net asset value on any day decreased by more than two-thirds of the net asset value of the Master Fund. (2) The sum of the net asset value of the Master Fund decreased during any period of five consecutive business days, representing a total of more than two-thirds of the net asset value of the Master Fund. In case where the net asset value of the Master Fund decreases in such forms, the Asset Management Company will perform as follows: (1) Notify the cause of the decrease in the net asset value of the Master Fund with the guidelines and procedures with regard for the best interests of the Unitholders as a whole to the SEC and the Unitholders within three business days from the date of the incident. (2) Perform under the guidelines and procedures according to (1) to be completed within 60 days from the date of the incident. (3) Report the performance to the SEC within three business days from the date of completion. 4 SCB Asian Emerging Markets THB Hedge (SCBAEMH)

5 (4) Disclose the information about the performance of the Fund according to (1) to potential investors so that those interested in the investment perceive and understand about the status of the Fund. In this regard, the Asset Management Company will also pursue relevant personnel to disclose the information about such performance. For the duration of the implementation according to (2), the Asset Management Company can request a waiver to the SEC. In terms of transfer or switch of investment units to other aforesaid offshore funds, the Asset Management Company reserves the right to consider the operation for one time or many times. The gradual transfer of investment money may cause the Fund to invest or hold investment units from more than one offshore fund as specified in the project above. Nevertheless, if the Asset Management Company is unable to invest in other funds whose policy aligns with the project s objectives, the Asset Management Company may consider proceeding to request for resolution of Unit holders to change investment policy or termination of Mutual Fund Management Project. The Investment Return for Investors The investor has an opportunity to gain profits from increasing value of investment units (capital gains) In this regard, the investor who is a natural person shall be exempted from a personal income tax regarding the profits gained from the increased value of investment units. Risk Spectrum of the Categories of Invested Instruments 5 SCB Asian Emerging Markets THB Hedge (SCBAEMH)

6 The Significant Characteristics of Mutual Fund Q: Does this Mutual Fund determine types of investor or classification of unit classes? How? A: This Fund is a mutual fund for general investors and do classify a class of investment unit as follow; The Fund has classified its investment unit to the following 3 classes: 1) Accumulative Value Class (SCBAEMHA): This class is suitable for investors who wish to mainly generate a total returns via capital gain. 2) Auto-redemption Class (SCBAEMHR): This class is suitable for investors who wish to generate returns via auto-redemption. The Fund intends to generate regular income from auto-redemption. 3) Paid-dividend Class (SCBAEMHD): This class is suitable for investors who wish to generate returns via dividend. On IPO period The Management Company will offer a subscription of the Accumulative Value Class (SCBAEMHA) After IPO period if the Management Company has offered a subscription of the Auto-redemption Class or Paid-dividend Class the Management Company will notify the unitholders in advance before offering for subscription. Example of NAV Calculation Assumption; Day 1 1. NAV of total subscribed unit is at 25,000,000 Baht with a par value of 10 Baht, a unit of Accumulative Value Class 2. Day1 Accrued interest receivable: 100,000 Baht 3. Subscription of Auto-redemption Class at amount of 3,000,000 Baht and Paid-dividend Class at amount of 2,000,000 Baht 4. Redemption of Accumulative Value Class at amount of 1,500,000 Baht Unit: Baht NAV of total subscribed unit after frontend fees and back-end trading Fees (if any) Accrued Interest Receivable 100,000 Baht Mutual Funds Investment Unit of Accumulative Value Class 25,000, ,000, , , Investment Unit of Auto-redemption Class Investment Unit of Paid-dividend Class NAV before Fund Expenditures 25,100, ,100, List of Daily Expenditures of Mutual fund (divided by 365 days) Approximated Management Fee (per year) by Unit Class Management Fee = % (+VAT 7%) = % (675.84) (675.84) Custodian Fee= 0.03% (+VAT 7%) = % (22.07) (22.07) SCB Asian Emerging Markets THB Hedge (SCBAEMH)

7 Total Fees per Day (697.91) (697.91) Net Asset Value (NAV) 25,099, ,099, Amount of Investment Unit (unit) 2,500, ,500, Unit Value (Baht per unit) Day 2 1. Increase of units from subscription of Auto-redemption Class at amount of 3,000,000 Baht and Paid-dividend Class at amount of 2,000,000 Baht 2. Decrease of units from redemption of Accumulative Value Class at value of 1,500,000 Baht 3. Subscription of Accumulative Value Class at amount of 3,000,000 Baht 4. Auto-redemption of Auto-redemption Class to the investors with Auto-redemption Class at amount of 1,000,000 Baht 5. Increased NAV: 250,000 Baht Fund NAV of Previous Day (Baht) (Transaction Date (T)) Mutual Funds Investment Unit of Accumulative Value Class Investment Unit of Auto-redemption Class Investment Unit of Paid-dividend Class 25,099, ,099, Transactions Related to Each Unit Class 1. Subscription of Auto-redemption Class and Paid-dividend Class 5,000, ,000, ,000, Redemption of Accumulative Value Class (1,500,000.00) (1,500,000.00) Total transactions related to each unit class (Baht) 3,500, (1,500,000.00) 3,000, ,000, NAV after Transactions related to each unit class 28,599, ,599, ,000, ,000, Increased NAV at value of 250,000 Baht 250, , , , NAV before Fund Expenditures 28,849, ,805, ,026, ,017, How to allocate Net Asset Value Accumulative Value Class = 28,849, x (23,599,302.09/28,599,302.09) Auto-redemption Class = 28,849, x (3,000,000/28,599,302.09) Paid-dividend Class = 28,849, x (2,000,000/28,599,302.09) List of Daily Expenditures of Mutual fund (divided by 365 days) Approximated Management Fee (per year) by Unit Class Management Fee = % (+VAT (776.79) (640.99) (81.48) (54.32) 7%) = % Custodian Fee = 0.03% (+VAT 7%) = (25.37) (20.94) (2.66) (1.77) 7 SCB Asian Emerging Markets THB Hedge (SCBAEMH)

8 0.0321% Total Fee per Day (802.16) (661.93) (84.14) (56.09) Net Asset Value (NAV) 28,848, ,804, ,026, ,017, Amount of Investment Unit (unit) - Increased units from subscription of Auto-redemption Class amount 3,000,000 Baht/ = 298, units - Increased units from subscription of Paid-dividend Class amount 2,000,000 Baht / = 199, units - Decreased units from redemption of Accumulative Value Class amount 1,500,000 Baht/ = 149, units 2,848, ,350, , , Unit Value (Baht per unit) Day 3 1. Increase of units from subscription of Accumulative Value Class at amount of 3,000,000 Baht 2. Decrease of units from auto redemption to the investors with auto-redemption class at amount of 1,000,000 Baht 3. Paid dividend to the investors with Paid-dividend Class at amount of 80,000 Baht 5. Increased NAV: 900,000 Baht Mutual Funds Investment Unit of Accumulative Value Class Investment Unit of Auto-redemption Class Investment Unit of Paid-dividend Class Fund NAV of Previous Day (Baht) (T + 1) 28,848, ,804, ,026, ,017, Transactions Related to Each Unit Class 1. Subscription of Accumulative Value Class amount 3,000,000 Baht 3,000, ,000, Redemption of Auto-redemption Class amount 1,000,000 Baht (1,000,000.00) (1,000,000.00) 3. Paid dividend amount 80,000 Baht (80,000.00) (80,000.00) Total transactions related to each unit class (Baht) 1,920, ,000, (1,000,000.00) (80,000.00) NAV after Transactions related to each unit class 30,768, ,804, ,026, ,937, Increased NAV at value of 900,000 Baht 900, , , , SCB Asian Emerging Markets THB Hedge (SCBAEMH)

9 NAV after Transactions related to each unit class and increase transaction 31,668, ,588, ,085, ,994, How to allocate Net Asset Value Accumulative Value Class = 31,668, x (26,804,932.80/30,768,499.93) Auto-redemption Class = 31,668, x (2,026,140.28/30,768,499.93) Paid-dividend Class = 31,668, x (1,937,426.85/30,768,499.93) List of Daily Expenditures of Mutual fund (divided by 365 days) Approximated Management Fee (per year) by Unit Class Management Fee =0.9185% (+VAT 7%) = % (852.70) (742.86) (56.15) (53.69) Custodian Fee = 0.03% (+VAT 7%) = % (27.84) (24.26) (1.83) (1.75) Total Fee per Day (880.54) (767.12) (57.98) (55.44) Net Asset Value (NAV) 31,667, ,588, ,085, ,994, Amount of Investment Unit (unit) - Increased units from subscription of Accumulative Value Class amount 3,000,000 Baht/ = 298, units - Decreased units from redemption of Auto-redemption Class amount 1,000,000 Baht/ = 99, units 3,046, ,646, , , Unit Value (Baht per unit) Q: How much capital in this Mutual Fund Project? A: 5,000 Million baht during the period of Initial Public Offering of investment units. The Asset Management Company may offer the investment units exceeding the capital of project, but not exceed BHT 450 million baht or 45,000,000 investment units. Q: What kind of investment is suitable for this Fund? How long does the investment take? A: The Fund is suitable for the investment money of investor who would like to diversify his/her investment to other securities in offshore markets as long-term investment. In this regard, the investors shall be able to take risks related to investment in securities or assets invested by the Fund offshore and accept volatility of investment units and investment return during some periods throughout the period of investment units holding. Q: What is the factor significantly affecting the investor s invested money? A: - As the Fund has policy to focus on the investment in investment units of foreign fund, the foreign fund in which the Fund considers to invest will relate to many categories of different securities or properties. Some categories of securities or 9 SCB Asian Emerging Markets THB Hedge (SCBAEMH)

10 properties have high risk or have much opportunity of fluctuation, accordingly, any change, increasing or decreasing adjustment of the prices of securities or properties will result in the increase or decrease of investment units price as well. - As the foreign fund in which the Fund will invest was registered and established in foreign countries, therefore, the Fund must comply with rules and regulations and relevant laws of such countries which may be different from the rules and regulations and relevant laws in establishment of Thai s funds. - The fluctuation of foreign exchange rate may result in the change of fund investment units value, accordingly, the principal and yield in THB may also fluctuate. Q: Is this Fund having the guarantor of invested money, or the Fund focusing upon the protection of principal? How? A: There is neither SCBAEMH s guarantor of the invested money nor the protection of principal for the investor. Q: What is the accounting period of this Fund? A: This is the open-end fund of which the end of accounting period is approximate one year from the date of registering the properties as mutual fund. Q: Are you able to subscribe this Fund in a form of the Unit-Link? A: During the initial term, the management company does not offing a subscription of investment unit in a form of the Unit-Link. However, if there is any progress on offing such subscription, the management company will prior notify the investors via an announcement on the management company s website. Q: What is an investment in a form of the Unit-Link? A: Investment in a form of the Unit-Link subscription is that investors initially insure with the insurance company. Then, the insurance company will allocate the insurance premium of the same, in whole or in part, for investing in mutual funds preselected by the investors from a list of mutual funds provided by the insurance company, whereby a portion of the insurance premium to be invested into the mutual funds will be subject to the terms and conditions set forth in the insurance policy. In this regard, the insurance premiums invested in the mutual fund may be increased or decreased at all time in accordance with performance of the investors selected mutual funds. Q: What are the investment policies, significant risk factors, and performance of Master Fund? A: Master fund is BGF Asian Growth Leaders Fund, share class D2 USD Policy of Master Fund The investment policy of the master fund seeks to maximise total return. The Fund invests at least 70% of its total assets in the equitysecurities of companies domiciled in, or exercising the predominant part of their activity in Asia, excluding Japan. The Fund places particular emphasis on sectors and companies that, in the opinion of the Investment Adviser, exhibit growth investment characteristics, such as above-average growth rates in earnings or sales and high or improving returns on capital. Graph showing the movement of price of investment units of BGF Asian Growth Leaders Fund 10 SCB Asian Emerging Markets THB Hedge (SCBAEMH)

11 (Source: Bloomberg s retrospective information from 29 November 2012 to 28 June 2017 Graph showing the retrospective performance of BGF Asian Growth Leaders Fund compared with MSCI All Country Asia ex Japan Index Remark: (1) Source: Bloomberg s retrospective information from 29 November June 2016 (2) The Fund s comparative perform and report on capital market products does not guarantee its future s return. Condition for subscription redemption and transfer of investment units Q: How can the investor subscribe and redeem the investment units? 11 SCB Asian Emerging Markets THB Hedge (SCBAEMH)

12 A: The investor must subscribe at the first time in the amount of not less than 5,000Baht and for the subsequent subscription, the amount must be of not less than 1,000 Baht. The number of investment units will be calculated according to the amount of subscription for the investment units divided by the selling price of investment units ( value of investment units plus the fee of investment units selling (if any) and VAT), for instance, if the investor subscribes the investment units at the first offering and the fee for the subscription during IPO is equivalent to 0.50 of the value of investment unit (excluding VAT), the first offering price is equivalent to per unit. If the investor subscribes the SCBAEMH s investment units equivalent to 5,000 Baht during the IPO, the investor will receive the investment units equivalent to units (5,000/ ). IPO period The investor can subscribe the investment units on every Trading Date during IPO period. Siam Commercial Bank PCL., Tel.No , , , , , , , and at every branch during hrs. Siam Commercial Bank PCL., Tel.No , Press 0, Press 6, starting business hour hrs.; The Asset Management Company may consider to appoint additional the selling agents later or may consider to accept the subscription order via Internet Banking Service, SCB Easy Fund under SCB Easy Net, during service time hrs. After IPO Period The investor can subscribe the investment units on every Trading Date. The subscription order can be accepted after the initial public offering within 1 month as from the fund s inception date. The Management Company will inform the investors later by posting an announcement at its office and every contact place of selling agents. The investor can subscribe the investment units at Siam Commercial Bank PCL., Tel.No , , , , , , , and at every branch during hrs. Siam Commercial Bank PCL., Tel.No , Press 0, Press 6, starting business hour hrs.; The Asset Management Company may consider to appoint additional the Selling Supporters or the Redemption Supporters later or may consider to accept the subscription order via. o Internet Banking Service, SCB Easy Fund under SCB Easy Net, during service time hrs. The Management Company may consider to appoint additional other Selling Supporters or the Redemption Supporters or may change such appointment later. (*Trading Date mentioned above means calendar days which are normal business days of Management Company and the Fund of the foreign country invested by the Fund and the country relating the investment or as additionally announced by Management Company.) Payments for the fund subscriptions can be made as follows:- IPO Period In case that the investor does the transaction via Siam Commercial Bank Public Company Limited and the channels specified by the Bank 12 SCB Asian Emerging Markets THB Hedge (SCBAEMH)

13 To pay the price in cheque or draft having the date as same as the subscription date and the cheque must be crossed to be paid to Siam Commercial Bank Public Company Limited for the SCB Asset Management Company Limited s Open-end Fund. In case that the investor does the transaction through the Management Company or other appointed selling agents To deposit the cheque or cash into Account for subscription of the SCB Asset Management Company Limited s Open-end Fund according to the details as follows:- Banks Account Numbers Siam Commercial Bank PCL Kasikorn Bank PCL Bank of Ayudhaya PCL Bangkok Bank PCL TMB Bank PCL Standardchartered (Thai) Bank PCL Kiatnakin Bank PCL Thanachart Bank PCL UOB Bank PCL Citibank Thailand PCL Krung Thai Bank PCL After IPO Period In case that the investor does the transaction via Siam Commercial Bank Public Company Limited and the channels specified by the Bank To pay the price in cheque or draft having the date as same as the subscription date and the cheque must be crossed to be paid to Siam Commercial Bank Public Company Limited for the SCB Asset Management Company Limited s Open-end Fund. In case that the investor does the transaction through the Management Company or other appointed selling agents To deposit the cheque or cash into Account for subscription of the SCB Asset Management Company Limited s Open-end Fund according to the details as follows:- Banks Account Numbers Siam Commercial Bank PCL Kasikorn Bank PCL Bank of Ayudhaya PCL Bangkok Bank PCL TMB Bank PCL Standardchartered (Thai) Bank PCL Kiatnakin Bank PCL SCB Asian Emerging Markets THB Hedge (SCBAEMH)

14 Banks Account Numbers Thanachart Bank PCL UOB Bank PCL Citibank Thailand PCL Krung Thai Bank PCL Investment Units Redemption in case of Auto-Redemption (1) The Management Company will render the automatic redemption of the investment units for the Unitholders not exceeding 12 times a year. The Management Company will be deemed to have approval from the Unitholders to redeem such investment units and also to assign the Management Company to implement such automatic redemption of the investment units. However, the automatic redemption of the investment units will result in the decrease of number of each Unitholder s investment units. (2) The consideration on the amount and the payment of automatic redemption of the investment units are subject to the Management Company s discretion. In this regard, the Management Company will implement the automatic redemption of the investment units from returns of investment and/or principal. (3) the Management Company will implement the automatic redemption of the investment units according to abovementioned Clause 1 by investing money of every Unitholder in SCBSFF or debt instrument mutual fund, money market mutual fund as specified by the Management Company, or other mutual fund according to the intention of the Unitholders. The supporting fund on this matter will be specified by the Management Company; (4) the Management Company reserves the right to implement the automatic redemption of the investment units for the Unitholders whose names appeared in the evidence of the registration of the Unitholders subject to the Management Company s discretion; (5) With regard to the criteria for calculating the price of investment units redemption, the Management Company will use the calculated value of investment units at the end of business day of automatic redemption of the investment units. If the unitholders place the redemption orders / switching orders on the auto redemption date as much as the investment units remained are not sufficient for making any auto redemption transaction, the management company shall reserve the rights to proceed all of the auto redemption transactions remained by regarding as having already obtained the consent from the unitholders. In addition, the management company reserves the rights not to proceed any auto redemption upon the occurrence of each or many of the following event(s): - If the unitholders investment units are seized or attached by legally authorized authorities, the management company shall not in any manner proceed the auto redemption; provided that this shall apply to the investment units only which are seized or attached. - If the unitholders investment units are pledged, the management company shall not in any manner proceed the auto redemption; provided that this shall apply to the investment units only which are pledged. - If the management company considers and sees that the refusal to accept the auto redemption at that time can bring advantages to the unitholders. 14 SCB Asian Emerging Markets THB Hedge (SCBAEMH)

15 The unitholders shall not be able to withdraw the consent to place the redemption orders as aforementioned in (1) hereof unless the management company sees appropriate and grants the permission to each and every unitholder on a special basis. In case of Ordinary Redemption. The unitholders are able to redeem at the amount of, at least, Baht 1,000 and a minimum balance of their accounts at Baht 1,000. In this regard, the Management Company shall re-pay to the investors within 5 days from the date of calculating values of asset, investment unit, sale, and redemption on the transaction date without calculation of a public holidays of foreign countries, the management company will announce the public holidays of foreign countries via website of the management company and of the selling agent (if any). by way of money transfer to the investors bank account or issuance of A/C-payeeonly cheque, in accordance with a pre-request of the investors. The investor can subscribe the investment units on every Trading Date* at: Siam Commercial Bank PCL., Tel. No , Press 0, Press 6, starting business hour hrs.; Siam Commercial Bank PCL., during the initial period, the investor may subscribe the investment units at o Siam Commercial Bank PCL., Tel. No , , , , , , , and at every branch during hrs. o Internet Banking Service, SCB Easy Fund under SCB Easy Net, during service time hrs. Moreover, the Asset Management Company may consider to appoint additional other Selling Supporters or the Redemption Supporters or may change such appointment later. (*Trading Date mentioned above means calendar days which are normal business days of Asset Management Company and of the foreign country invested by the Fund and the country relating the investment or as additionally announced by Asset Management Company.) Q: What are the cases that the Fund reserves the right not to sell the investment units? A: The Management Company and/or an authorized person of the Management Company is entitled to reject and/or withhold and/or terminate transactions of Unit holders in whole or in part as see fit without providing prior notice to the Unit holders in case of an event or events occurred as follows: (A) The Unit holders fill in details of Fund s service application form and/or subscription order of investment units and/or identity form of order issuer of investment unit and/or other documents as required by the Management Company but not completely for complying with the laws on anti-money laundering, and/or the order issuer of investment units fails to submit any document or evidence containing the details as specified by the Management Company; (B) The Management Company views that the subscription order of investment units may be in the nature of breaking the laws on anti-money laundering and/or using it as a way of money laundering and/or using it as a way of providing financial support to terrorism in pursuant to the laws on anti-money laundering, or may be in the nature of avoiding laws or violating any laws; (C) The Management Company views that such subscription of investment units may affect the investment of mutual fund, other order issuer of investment units, or credibility, or image of asset management business, or reputation of Management Company; 15 SCB Asian Emerging Markets THB Hedge (SCBAEMH)

16 (D) The Management Company reserves the right to reject the offering of investment units to minimum two natural persons at but not exceeding four natural persons for jointly holding the investment units and then found that some or all of investors have already deceased; (E) For the maximum benefits of SCBAEMH Fund management ( Fund ), the offering of investment units or a switch of investment units of the Fund shall be under the discretion of The Management Company solely. The Management Company reserves the right to accept or reject the offering and switch of investment units of the Fund to any persons. The Management Company intends not to offer or switch investment units of the Fund including but not limited to US citizens, persons whose domicile are in U.S.A., persons whose address are normally in U.S.A. including properties of such persons, and companies or partnerships where have been established and of which activities have been conducted in U.S.A. (F) The Management Company reserves the right to refuse the investment units subscription order of the investor, if such subscription order is in contrast to the rule of the Office of Securities and Exchange Commission or affects the management of the fund. The Management Company will seriously take the benefits of unitholders into consideration; Q: What are the regulations concerning postponement of payment for investment unit redemption, rejection of subscription and redemption of the investment units according to the accepted order, and the cease of acceptance of subscription order or redemption orders? A: The postponement of payment due in case of investment unit redemption for the Unit holders. The Management Company may postpone the payment due of investment unit redemption for the Unit holders making redemption order of investment units of Fund only in the case being determined which shall not be beyond the following cases. (1) The Management Company, after consideration, believes in good faith and reasonably that it complies with the following causes according to the approval of Trustee. (a) There is necessity being unable to distribute and transfer securities or assets of Fund reasonably, or; (b) There is a cause making the Fund not to receive the payment from securities or assets invested in normal period which such cause is beyond the control of Management Company; (2) The redemption order of investment units is made, but during that period the Management Company still does not make payment for the redemption of investment unit to the Unit holders, the Management Company found that the redemption price of investment units are incorrect and the Trustee still does not certify the information in the report of amendment to retrospective price and the report of price compensation. The incorrect redemption price of investment units differs from the correct price starting from 0.01 baht and above, equivalent to a rate of 0.5% of correct redemption price and above. (3) The redemption order of investment units is made during the period that the Management Company found that the redemption price of investment units is incorrect and the Trustee still does not certify the information in the report of amendment to retrospective price and the report of price compensation. The incorrect redemption price of investment units differs from the correct price starting from 0.01 baht and above, equivalent to a rate of 0.5% of correct redemption price and above. In this regard, the postponement of payment due in case of investment unit redemption as mentioned above, the Management Company would take actions as specified in details of project and regulations stipulated by the Securities and Exchange Commission. 16 SCB Asian Emerging Markets THB Hedge (SCBAEMH)

17 In case of not selling, or redemption, or switching investment units as being ordered The Management Company may not sell or repurchase the investment units accordingly to the accepted subscription order or redemption order or may cease taking subscription order or redemption order only in the case of being determined which is not beyond the following cases. (1) The SET cannot be opened for trades as usual. (2) The Management Company, after consideration, believes in good faith and reasonably that it complies with the following causes according to the approval of Trustee. (a) There is necessity being unable to distribute and transfer securities or assets of Fund reasonably; (b) Being unable to calculate asset value of Fund fairly and appropriately; or (c) There is any other necessity in order to protect benefits of Unit holders In this regard, a rejection of selling or redeeming investment units against a accepted order or a cease of taking subscription order or redemption order of investment units according to (a), (b), or (c) can be conducted not exceeding one business day, except the relaxation is granted from the Office. (3) In case where the Mutual Fund invests in offshore securities or assets and then the following events are occurred which provide an impact to the Mutual Fund significantly; (a) The stock markets cannot be opened for trades as usual. This is only in the case where the Mutual Fund invests in securities traded in such stock markets exceeding 10% of asset value of mutual fund; (b) The occurred event prevents free money exchange and money transfer from and to foreign country as usual or; (c) There is a cause making the Fund not to receive the payment from securities or assets invested in normal period which such cause is beyond the control of Management Company and approved by the Trustee. (4) A rejection of selling investment units according to the subscription order or a cease of taking subscription order of investment units conducted only to some specific investors because the facts appear as follows: (a) The Management Company reasonably suspects that such investors involve with the following actions. 1. The act of predicate offence or money laundering by law concerning anti-money laundering regardless of Thai or foreign laws; 2. Providing financial support to terrorism or; 3. The act to follow any instruction concerning asset foreclosure or sequestration conducted by person in authority. (b) The Management Company cannot proceed to know a customer and verify to recognize fact regarding such customer for his/her significant matters. In this regard, the operation for a rejection of selling or redeeming investment units against an accepted order as mentioned above shall be carried as specified in the details of project and regulations stipulated by the Securities and Exchange Commission. The cease of taking subscription order or redemption order In order to protect benefits of Unit holders, or in the case where there is necessity to maintain economic and financial stability of the country, or to ensure stability of financial market, the Management Company shall temporarily cease taking subscription order or redemption order of Fund s investment units complying with the duration announced by the Securities and Exchange Commission, but not exceeding 20 days consecutively, except the Securities and Exchange Commission shall extend the withholding duration of taking subscription order or redemption order. 17 SCB Asian Emerging Markets THB Hedge (SCBAEMH)

18 Q: What is the operation of switching investment units? A: The Unitholders can switch the investment units by contacting the Management Company, or selling agents appointed by the Management Company (if any) who are able to take subscription order or redemption order, or persons in charge of selling and redeeming the investment units, or Internet Banking Service or any other channels specified by the Management Company. The Management Company may amend the procedure of switching the investment units without being considered as amendment to the project as specified in the project s details. The Asset Management Company may inform the Securities and Exchange Commission and post the announcements at the headquarter and branch offices of selling supporters or redemption supporters, post on websites of Management Company and websites of selling supporters or redemption supporters (if any) to notify the Unit holders not less than 7 days prior to the change in service. The operation carried by the Management Company shall basically consider the Fund s benefits and Unit holders. Q: What are procedures and limitations of transfer of investment units of this Mutual Fund? A: The Unit holders can transfer the investment units based on the following cases. (a) Transfer of investment units to father, mother, children, and spouse of Unit holders. (b) Transfer of investment units complying with the court order or the operation of law (excluding the case where the minimum of two natural persons at but not exceeding four natural persons for jointly holding the investment units and then found that some or all of investors have already deceased, except the court shall order otherwise). (c) Transfer of investment units in other special cases as the Management Company sees fit and approves the transfer. In this regard, the transferor and transferee shall submit an application form of investment unit transfer by himself/herself at Registration Office of Investment Units in case where the transferor is still not the service user of Management Company. The transferee shall fill in details in the application form of service request and then submit it to the registrar of investment units together with the application form of investment unit transfer and pay transfer fee complying with a topic of transfer fee of investment units as specified in the project s details (if any). The registrar of investment units shall record the information of investment unit transfer and issue a unit transfer certificate together with investment unit right certificate to the transferee while the unit transfer certificate shall be issued to the transferor within 7 days from the date the registrar of investment units receives the application form of unit transfer request. In this regard, the rights of Unit holders shall be effective when the registrar of investment units records the information in the Unit holder Registration. For the maximum benefits of SCBAEMH ( Fund ) fund management, the acceptance of registration of investment unit transfer shall be under the discretion of Management Company solely. The Management Company reserves the right to accept/reject registration of investment unit transfer to any person. The persons whom the Management Company intends not to accept the registration of investment unit transfer include but not limited to US citizens, persons whose domicile are in U.S.A., persons whose address are normally in U.S.A. including properties of such persons, and companies or partnerships where have been established and of which activities have been conducted in U.S.A. Q: How can the investor know NAV? A: The Management Company will announce the net asset value, value of investment units and price of investment units in website which is (if any) on every business day. 18 SCB Asian Emerging Markets THB Hedge (SCBAEMH)

19 Rights of Unit holders Q: Does this Mutual Fund issue and deliver investment unit certificate? How? A: The Management Company shall issue investment unit right certificate to the Unit holders every time that the Unit holders conduct subscription, redemption, or switching transactions of investment units to affirm such transactions of Unit holders. In case where the subscription order is made during IPO, the registrar of investment units who are assigned from the Management Company shall deliver investment unit right certificate/subscription certificate together with receipt and tax invoice for investment unit fees (if any) to the person submitting subscription order via mail within 7 days from the registration date of Fund. In terms of any transaction made after IPO, the registrar of investment units and/or selling supporters or redemption supporters who are assigned from the Management Company shall deliver investment unit right certificate together with a confirmation of such transaction, tax invoice for fees of sale/redemption/switching investment units (if any) and/or receipt to the Unit holders via mail within 7 days from the date of calculating values of asset, investment unit, sale, and redemption on the transaction date, except the Management Company shall approve of any other operations. Q: What are the limitations of Unit holder s rights of this Fund under the following conditions? A: The right of not receiving allocation of investment units The Management Company will not allocate the investment units to the person purchasing the investment units exceeding the restriction of investment units holding according to the notification of Capital Supervisory Board regarding the rule of the restriction of investment units holding in mutual fund and the duties of the Management Company; The right of casting vote to amend the investment management project or management procedure. In the case where any person or a same group of persons holds the investment units exceeding one-third of wholly sold investment units, the Management Company or the securities company who own the Omnibus account will not count the votes of person or a same group of persons holds the investment units exceeding one-third of wholly sold investment units Q: Channel and procedure that the Unit holders can verify guidelines of exercising their rights to cast vote and the proceeding of vote casting of the Management Company additionally. A: The investors can verify the guidelines of exercising someone s rights to cast his/her vote and the process of casting vote which the Management Company would post the announcements at the Management Company s office or on the Management Company s website. Q: Does this Mutual Fund have a channel and process of complaints for investors? Does the Mutual Fund have a policy to settle a dispute by arbitration procedures and a process to enter into such procedures? How? A: The Unit holders can submit complaints to SCB Asset Management Co., Ltd., Customer Relation Department, Tel.No , Press 0, Press 6 The office of the Securities Exchange Commission (Help Center), Tel.No Trustee : Kasikorn Thai Bank PCL. Tel SCB Asian Emerging Markets THB Hedge (SCBAEMH)