LIBRA OPPORTUNITY BOND FUND (LOBF)

Transcription

1 RESPONSIBILITY STATEMENT This Product Highlights Sheet has been reviewed and approved by us the directors or authorized committee or persons approved by the Board of Libra Invest Berhad 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 Highlight Sheet false or misleading. STATEMENT OF DISCLAIMER The Securities Commission Malaysia has authorised the issuance of Libra Opportunity Bond Fund and a copy of this Product Highlights Sheet has been lodged with the Securities Commission Malaysia. The authorisation of the Libra Opportunity Bond Fund and lodgement of this Product Highlights Sheet, should not be taken to indicate that the Securities Commission Malaysia recommends the Libra Opportunity Bond 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 Libra Invest Berhad responsible for the Libra Opportunity Bond 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. This Product Highlights Sheet only highlights the key features and risks of this Libra Opportunity Bond Fund. Investors are advised to request, read and understand the disclosure documents before deciding to invest. LIBRA OPPORTUNITY BOND FUND (LOBF) BRIEF INFORMATION OF THE FUND LOBF is an actively managed open-ended Wholesale Fund which will focus on investing in bonds in the Asia Pacific region but not limited to investments within the region. The Fund will also have the flexibility to invest globally to capitalize on opportunities depending on market outlook and economic conditions. The Fund may be terminated in accordance with the provisions of the Deed when the Fund has achieved total investment returns of 10% from income and capital appreciation which is calculated based on NAV per Unit of the Fund on the Commencement Date. Note: As the total investment returns of 10% from income and capital appreciation is calculated based on the NAV per Unit of the Fund on the Commencement Date, investors who purchase Units of the Fund after the Commencement Date should be aware that they may not be able to fully receive the total investment returns of 10% from income and capital appreciation if the NAV per Unit at the point of purchase is higher than the NAV per Unit of the Fund on the Commencement Date (please refer to IM for illustration of total investment return computation if the Fund is terminated after achieving 10% return.) Product Category/ Type Fixed Income (Wholesale) / Income & Growth Capital Protected/ Guaranteed No Manager Libra Invest Berhad ( D) (A member of the ECM Libra Group) Trustee CIMB Commerce Trustee Berhad ( A)

2 PRODUCT SUITABILITY LOBF is suitable for investors who: have a medium term investment horizon; and have a medium to high risk tolerance. KEY PRODUCT FEATURES Inception Date 30 April 2014 Investment Objective Offer Price The Fund seeks to maximize total investment returns from income and capital appreciation through an actively managed investment policy in order to capitalize on investment opportunities in global bond and fixed income markets. RM per unit Offer Period Twenty-one (21) calendar days commencing from 30 April 2014 to 20 May 2014 Asset Allocation Asset Class Local and/or foreign bonds Other fixed income instruments, including money market instruments Collective investment schemes % of the Fund s NAV Minimum 70.0% 0% 30.0% 0% 30.0% Note: The asset allocation may be reviewed from time to time depending on the global economic condition as well as bond and fixed income market outlook. Investment Strategy The Fund seeks to achieve its objective by focusing on investing in bonds in the Asia Pacific region but not limited to investments within the region. The Fund will also have the flexibility to invest globally to capitalize on opportunities depending on market outlook and economic conditions. (please refer to page of the Fund IM for further details). There is no minimum rating for bonds and other fixed income instruments purchased or held by the Fund. This includes investments in sovereign, quasi-sovereign and corporate bonds. The Fund may invest globally, including, but not limited to: Malaysia Singapore Indonesia Thailand Philippines South Korea China Hong Kong Japan Australia New Zealand The Fund has no geographic limits on where its investments may be made. This allows the Manager to look for investments in markets around the world that it believes will provide the optimum asset allocation in terms of risk and reward to capitalize on opportunities to meet the Fund s objective. The Fund may use derivatives, including options, futures, swaps and forward contracts, in order to hedge (or protect) the value of its assets against adverse movements in currency exchange rates, interest rates and movements in the bond and fixed income markets. Derivatives are financial instruments whose value is derived from another security, a commodity, a currency or an index. While investing in these instruments will expose the Fund to the counterparty s credit risk, the Fund will invest in instruments issued by counterparties which are banks or Financial Institutions with an investment grade credit rating of at least BBB- by Standard & Poor s or Baa3 by Moody s or its equivalent by any other domestic or global rating agency. Refer to the sections headed Fund Information of the IM for further information.

3 Parties Involved The Parties involve in LOBF:- The Manager The Trustee The Custodian The Principal Advisor / Banker The Auditor : Libra Invest Berhad (A member of ECM Libra Group) : CIMB Commerce Trustee Berhad : CIMB Group Nominees (Tempatan) Sdn Bhd : Malayan Banking Berhad : Standard Chartered Bank Malaysia Berhad : Ernst & Young Refer to the sections headed Corporate Directory of the IM for further information. Possible outcomes of investment? 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. Different investment generally exhibit different levels of risk. Please note that returns of the Fund are not guaranteed. The investments of the Fund carry risks and investors are recommended to read the whole Information Memorandum to assess the risks of investing in the Fund. KEY RISKS All types of investments carry some degree of risk which may have an adverse effect on the unit price of the Fund. In making an investment decision, prospective investors should consider the risks associated with the Fund. While it is not always possible to protect against all types of risk that can occur, the Manager will endeavour to mitigate the risk as much as possible while working to achieve the objective of the Fund. General Risks of Investing in the Fund Market risk Risk of non-compliance Manager risk Returns not guaranteed Regulatory risk Specific Risks of Investing in the Fund Currency risk Foreign market risk Company specific risk Interest rate risk Credit/Default risk Liquidity risk Inflation risk Counterparty risk Derivatives risk (for hedging purposes) The value of the Fund and its distributions (if any) may rise or fall. These risk factors may cause you to lose some or all of your investment. Past performance of the Fund is not indicative of future performance. Investors are reminded that the above list of risks may not be exhaustive and if necessary, they should consult their adviser(s), e.g. their bankers, lawyers, stockbrokers or professional adviser for a better understanding of the risks. Refer to the section headed Risk Factors on page 15 of the IM for further information.

4 FEES & CHARGES FEES AND CHARGES OF LOBF Charges directly incurred by investor: Sales Charge Redemption Charge Transfer Fee Others charges Up to 3.00% of the Fund s NAV per Unit Nil Nil There are no other charges (except charges levied by banks on remittance of money) payable directly by unit holders when purchasing or redeeming Units. Fees indirectly incurred by investor: Annual Management Fee Annual Trustee Fee Custodian Fee Fund Expenses Up to 1.50% per annum of the NAV of the Fund. Up to 0.10% per annum of the NAV of the Fund (excluding foreign custodian fees and charges). The custodian fee payable is subject to the agreement with the custodian and will depend on the number of transactions carried out and the place at which such transactions are effected. A list of the fund expenses directly related to the Fund are as follows: auditor fees and broker/dealer commission/fees; tax and duties imposed by the authorities; valuation fees; cost for modification of Deed save where such modification is for the benefit of the Manager and/or the Trustee; cost of convening meetings for unit holders other than those incurred by or for the benefit of the Manager or Trustee; and other fees/expenses as permitted in the Deed. Any Other Fees Payable Indirectly by an Investor Nil Refer to the section headed Fees, Charges and Expenses of the Funds of the IM for further information.

5 VALUATIONS AND EXITING FROM INVESTMENT Valuation Point for the Fund The valuation of the NAV of the Fund will be done on T+1 at a.m. every Business Day. As the Fund invests in foreign markets, the valuation point is extended to a.m. local time on the next Business Day (T+1 day) due to the different time zones of foreign markets. Consequently, the daily NAV of the Fund may be published two (2) Business Days later instead of the next Business Day. The foreign exchange rate used for valuation of foreign investment is based on bid rate obtained from Reuters at U.K. time 4.00 p.m. (DST daylight saving time) the same day which will be p.m. every Business Day. Unit holders may contact the Manager or visit our website at to obtain the latest NAV of the Fund. How can I Purchase or Redeem Units? Units of the Fund can be purchased or redeem at the Manager s office in Kuala Lumpur or at any of our nationwide investor care & service centres after completing a declaration form and the purchase or redemption application form. Application to purchase Units must be accompanied by either a copy of the applicant s identity card, passport or any other form of identification. Units may be redeemed on any Business Day by completing a redemption application form. For a transaction to take effect on the same day, the redemption application form must reach the Manager before 3.30 p.m. The redemption of Units will be priced at the NAV per Unit calculated at the next valuation point and payment will be made within ten (10) calendar days upon the receipt of the duly completed original redemption application form by the Manager. There is no limit as to the frequency of redemption transactions. Cooling-off Policy If you are an investor investing in any funds managed by the Manager for the first time, there is a Cooling-Off Period of six (6) Business Days commencing from the date of receipt of the application by the Manager. You will obtain a full refund of your investment amount and the sales charge (if applicable) within ten (10) calendar days from the date the Manager receive your notification to exercise this right. The cooling-off right is only given to an investor, other than those listed below, who is investing in any funds managed by the Manager for the first time: a corporation or institution; a staff of the Manager; and a person registered with a body approved by the SC to deal in unit trusts. Refer to the section headed Transaction Information of the IM for further information.

6 Below is the info to contact us and/or to lodge a complaint. CONTACT INFORMATION The Manager: Libra Invest Berhad ( D) (A member of the ECM Libra Group) Ground Floor, Bangunan ECM Libra 8, Jalan Damansara Endah Damansara Heights Kuala Lumpur Distributor: Refer to the section headed Company Directory of the IM for further information General Line: Investor Care Line: Fax: / For internal dispute resolution, you may contact our Compliance Manager, Puan Yusidawati Binti Mt Yusuf at Investors who are dissatisfied with the outcome of the internal dispute resolution process, please refer your dispute to the Securities Industries Dispute Resolution Corporation (SIDREC): (a) Telephone : (b) Fax : (c) info@sidrec.com.my (d) 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. Investors can also direct their complaint to the Securities Commission (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) Telephone to Aduan Hotline : (b) Fax : (c) aduan@seccom.com.my (d) Online complaint form available at (e) Letter to : Investor Affairs & Complaints Department Securities Commission Malaysia No 3 Persiaran Bukit Kiara Bukit Kiara Kuala Lumpur

7 APPENDIX: GLOSSARY Fund NAV Libra Opportunity Bond Fund Means the value of all the assets of the Fund less the value of all the liabilities of the Fund at a valuation point; solely for the purpose of computing the annual management fee and annual trustee fee, the NAV of the Fund is inclusive of the management fee and trustee fee for the relevant day. Wholesale Fund Qualified Investors UTMC IM SC A unit trust fund, the units of which are issued, offered for subscription or purchase, or for which invitations to subscribe for or purchase the units have been made, exclusively to Qualified Investors. An individual whose total net personal assets, or total net joint assets with his or her spouse, exceed three million ringgit or its equivalent in foreign currencies, excluding the value of the individual s primary residence; An individual who has a gross annual income exceeding three hundred thousand ringgit or its equivalent in foreign currencies per annum in the preceding twelve months; An individual who, jointly with his or her spouse, has a gross annual income exceeding four hundred thousand ringgit or its equivalent in foreign currencies in the preceding twelve months; A corporation with total net assets exceeding ten million ringgit or its equivalent in foreign currencies based on the last audited accounts; A partnership with total net assets exceeding ten million ringgit or its equivalent in foreign currencies; A unit trust scheme or prescribed investment scheme; A private retirement scheme; A closed-end fund; A company that is registered as a trust company under the Trust Companies Act 1949 [Act 100] which has assets under management exceeding ten million ringgit or its equivalent in foreign currencies; A corporation that is a public company under the Companies Act 1965 [Act 125] which is approved by the Commission to be a trustee under the Act and has assets under management exceeding ten million ringgit or its equivalent in foreign currencies; A statutory body established by an Act of Parliament or an enactment of any State; A pension fund approved by the Director General of Inland Revenue under section 150 of the Income Tax Act 1967 [Act 53]; A holder of a Capital Markets Services License; A licensed institution; An Islamic bank; An insurance company licensed under the Insurance Act 1996 [Act 553]; A takaful operator registered under the Takaful Act 1984 [Act 312]; A bank licensee or insurance licensee as defined under the Labuan Financial Services and Securities Act 2010 [Act 704]; and An Islamic bank licensee or takaful licensee as defined under the Labuan Islamic Financial Services and Securities Act 2010 [Act 705]. Unit Trust Management Company Information Memorandum Securities Commission Malaysia