MANULIFE SHARIAH DANA SUKUK

Transcription

1 Manulife Asset Management Services Berhad (formerly known as Manulife Unit Trusts Berhad)( U) MANULIFE SHARIAH DANA SUKUK RESPONSIBILITY STATEMENT This Product Highlights Sheet has been reviewed and approved by the directors of Manulife Asset Management Services Berhad (formerly known as Manulife Unit Trusts Berhad) and they collectively and individually accept full responsibility for the accuracy of the information. Having made all reasonable enquiries, they confirm to the best of their knowledge and belief, there are no false or misleading statements, or omission of other facts which would make any statement in the Product Highlights Sheet false or misleading. STATEMENT OF DISCLAIMER The Securities Commission Malaysia has authorized the issuance of Manulife Shariah Dana Sukuk and a copy of this Product Highlights Sheet has been lodged with the Securities Commission Malaysia. The authorization of the Manulife Shariah Dana Sukuk and lodgement of this Product Highlights Sheet, should not be taken to indicate that the Securities Commission Malaysia recommends the Manulife Shariah Dana Sukuk or assumes responsibility for the correctness of any statement made or opinion or report expressed in this Product Highlights Sheet. The Securities Commission Malaysia is not liable for any non-disclosure on the part of the Manulife Asset Management Services Berhad (formerly known as Manulife Unit Trusts Berhad) responsible for the Manulife Shariah Dana Sukuk 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.

2 This Product Highlights Sheet only highlights the key features and risks of the Manulife Shariah Dana Sukuk ( the Fund ). Investors are advised to request, read and understand the Prospectus of the Fund before deciding to invest. MANULIFE SHARIAH DANA SUKUK PRODUCT HIGHLIGHTS SHEET BRIEF INFORMATION ON THE PRODUCT 1. What is this product about? Fund type Fund category : Income and Growth : Sukuk Investment Objective : The Fund seeks to maximize return through a combination of income 1 and capital appreciation over the medium to long term by investing primarily in sukuk. Performance benchmark : Maybank 12-months General Investment Account rate 2. Launch date : 27 May 2013 Offer Price : RM Offer Period : The period of 21 days from the date of the Prospectus of the Fund which is from 27 May June Distribution policy : Subject to the availability of income, the Fund will distribute income on an annual basis. Capital guaranteed : No 1 Income distribution proceeds may be paid out either in the form of cash or Units. Please refer to the Prospectus of the Fund for more details. 2 Please be aware that investing in the Fund is not the same as placement in the Maybank 12-months General Investment Account. The Fund has a higher risk profile than the Maybank 12-months General Investment Account. MANULIFE SHARIAH DANA SUKUK page 2

3 PRODUCT SUITABILITY 2. Who is this product suitable for? The Fund would be suitable for you who: have moderate risk tolerance with a medium to long term investment horizon; and seek a combination of income and capital appreciation from your investments. Please note that medium to long term refers to a period of 3 to more than 5 years. KEY PRODUCT FEATURES 3. What am I investing in? You will be investing into a sukuk Fund that aims to achieve its objective by investing a minimum of 70% up to a maximum of 98% of its NAV in local sukuk which include but are not limited to sovereign sukuk (including quasi-sovereign) and corporate sukuk (listed and unlisted). Investment in the aforesaid sukuk is expected to generate income through regular profit payments. The Fund will invest in investment-grade sukuk with a credit rating of at least BBB-/P3 by RAM or its equivalent rating by MARC. The balance of the Fund s NAV will be invested in Islamic money market instruments or placed in Islamic deposits. The Manager will actively manage the tenure of the sukuk that the Fund invests in; the trading strategies adopted by the Manager will depend on market opportunities and interest rate expectations, i.e. expectations on direction of interest rate movements will influence the tenure of the sukuk taken by the Manager. Hence, capital appreciation of the Fund may be achieved as the Manager may dispose off sukuk which have appreciated in value, prior to its maturity. The Manager will adopt both the bottom-up and top-down approach to maximize the potential returns of the Fund, with particular emphasis on fundamental analysis. From a top-down perspective, the Manager analyse the general economic and market conditions to form its view on the economy, interest rate outlook, market opportunities and risks. This view will be taken into consideration when formulating the overall investment strategy of the Fund. From a bottom-up perspective, the selected sukuk will undergo a credit evaluation process that entails an assessment of the credit risk factor of the sovereign and corporate issuer and the structure of the sukuk, whilst also considering the liquidity and yield of the sukuk relative to other comparable sukuk. MANULIFE SHARIAH DANA SUKUK page 3

4 KEY PRODUCT FEATURES (cont d) 3. What am I investing in? (cont d) The Manager may also invest in Shariah-compliant collective investment schemes provided it is consistent with the Fund s investment objective. The Manager will ensure there is sufficient liquidity to meet redemption requests. As a temporary defensive measure, the Manager may lower the Fund s sukuk exposure to below the minimum 70% (of the Fund s NAV) limit if the Manager is of the opinion that the investment climate is deemed to be unfavorable or under adverse market conditions. The Manager will then decide on the best appropriate asset allocation strategy and reallocate the Fund s sukuk investment into more defensive investments such as Islamic money market instruments and/or placement in Islamic deposits. 4. Who am I investing with? You will be investing with us, Manulife Asset Management Services Berhad. The following are the key parties related to the Fund: Trustee Shariah adviser Auditors Tax adviser Solicitor : CIMB Islamic Trustee Berhad (formerly known as CIMB Trustee Berhad) : IBFIM : PricewaterhouseCoopers : Deloitte Kassim Chan Taxation Services Sdn Bhd : Raja, Darryl & Loh MANULIFE SHARIAH DANA SUKUK page 4

5 5. What are the possible outcomes of my investment? Investment involves risk. The value of the Fund and its distribution (if any) may rise or fall. These risk factors (see the following section for the key risks of the Fund), among others, may cause you to lose some or all of your investment. KEY RISKS 6. What are the key risks associated with this product? The following table describes the key risks you are exposed to when investing in the Fund: Risks Credit/ Default risk Description Investments in sukuk are subject to the risk of non-payment and/ or untimely payment of the principal amount as well as the profits when they fall due. Credit/default risk is assessed based on the issuer s overall ability to meet its obligations when they fall due. For example, an issuer suffering an adverse change in its financial condition could have the credit rating of the sukuk lowered, leading to greater price volatility of the sukuk. A downgrade of the credit rating of a sukuk may also impact the sukuk s liquidity, making it more difficult to sell and greater volatility on the Fund s valuation. However, such risk can be mitigated through vigorous credit analysis and having regular updates on the business profile and the financial position of the sukuk issuer. Interest rate risk The risk refers to how the change in the interest rate environment affects the performance of the sukuk portfolio of the Fund. In the event of a rising interest rate environment, the prices of sukuk may decrease, and vice versa. Generally, there is an inverse relationship between interest rate and sukuk prices, where an increase of interest rate may lower the prices of the sukuk. In addition, sukuk with longer maturity and lower profit rates are more sensitive to interest rate changes. This risk will be mitigated via the management of the duration of the sukuk portfolio. MANULIFE SHARIAH DANA SUKUK page 5

6 KEY RISKS (cont d) 6. What are the key risks associated with this product? (cont d) Risks Interest rate risk (cont d) Liquidity risk Description Please note that interest rate such as Overnight Policy Rate (OPR), will have an impact on the management of the Fund regardless of whether it is a conventional or Shariah-compliant fund. It does not in any way suggest that the Fund will invest in conventional financial instruments. This risk refers to the possibility that the sukuk and Islamic money market instruments held by the Fund cannot be readily sold at or near its fair value due to insufficient trading volume. This in turn may adversely affect the value of the Fund. To mitigate liquidity risk, the Manager will maintain a diversified asset allocation in terms of the tenure and issuer of the sukuk/islamic money market instruments. Furthermore, the Fund will maintain a minimum level of Islamic liquid assets to serve as buffer for meeting short term liquidity requirements. IT IS IMPORTANT TO NOTE THAT THE ABOVE LIST OF RISKS MAY NOT BE EXHAUSTIVE. WHILE EVERY CARE WILL BE TAKEN BY THE MANAGER TO MITIGATE SUCH RISKS, INVESTORS ARE ADVISED THAT IT IS NOT ALWAYS POSSIBLE TO PROTECT INVESTMENTS AGAINST ALL RISKS. FURTHER, DIFFERENT ASSET CLASSES GENERALLY EXHIBIT DIFFERENT LEVELS OF RISK. MANULIFE SHARIAH DANA SUKUK page 6

7 FEES AND CHARGES 7. What are the fees and charges involved? The following table describes the charges and fees that you may directly incur for investing in the Fund: Sales Charge From all distribution Up to 0.50% of the (payable when you channels NAV per Unit place your purchase) The Sales Charge is negotiable. Redemption Charge Transfer fee (payable when you transfer your Units to another person or organisation) Switching fee (payable when you switch your Units to other funds managed by us) Other Charges We do not intend to impose any Redemption Charge. RM5.00 for each transfer request. We do not intend to impose any switching fee, however, you are subject to the conditions on switching as set out in the Prospectus of the Fund. There are no other charges (except charges levied by banks on remittance of money) payable directly by you when purchasing or redeeming Units of the Fund. The following table describes the fees and expenses that you may indirectly incur for investing in the Fund: Annual Management Fee Annual Trustee Fee 0.80% of the NAV of the Fund per annum calculated and accrued on a daily basis. 0.04% of the NAV of the Fund per annum calculated and accrued on a daily basis. MANULIFE SHARIAH DANA SUKUK page 7

8 FEES AND CHARGES (cont d) 7. What are the fees and charges involved? (cont d) Other Expenses audit fees; commission/fees paid to brokers (if any); tax adviser s fee; taxes and other duties imposed by the government and/ or other authorities; valuation fees incurred for the valuation of any investment of the Fund by independent valuers for the benefit of the Fund; independent investment committee members fee; Shariah Adviser s fee; 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 and/ or the Trustee; and any other expenses allowed under the Deed. VALUATION AND EXITING FROM INVESTMENT 8. How often are valuations available? The Fund must be valued at least once every Business Day. The Guidelines also requires a valuation of the Fund to be carried out in a fair and accurate manner. The Fund adopts a forward pricing basis which means that prices of Units will be calculated based on the NAV of the Fund at a valuation point in the future, i.e. the next valuation point. The valuation point of the Fund is at the end of each Business Day. Accordingly, if applications for Units or requests for redemption are received before the cut-off time of 3.00 p.m. on a Business Day, say, Tuesday, the price of the Units in respect of those applications and requests will be calculated based on the valuation of the Units done on Tuesday. Accordingly, applications for Units or requests for redemption received after the cut-off time of 3.00 p.m. on the Business Day of, for example, Tuesday, the applicable prices for those applications and requests will be the prices calculated on Wednesday (assuming Wednesday is a Business Day) (T + 1). MANULIFE SHARIAH DANA SUKUK page 8

9 VALUATION AND EXITING FROM INVESTMENT (cont d) 8. How often are valuations available? (cont d) The prices of Units will be published on the next Business Day in at least 1 national English language newspaper and 1 national Bahasa Malaysia newspaper. For example, prices of Units calculated on Tuesday will be published on Wednesday (assuming Wednesday is a Business Day). Alternatively, Unit Holders may contact the Manager directly during business hours to obtain the latest price of the Fund. Note: Valuation point is the particular point in time on a Business Day, as the Manager may decide, at which the NAV of the Fund is calculated. 9. How can I exit from this investment and what are the risks and costs involved? You may make a request for redemption on any Business Day. Units will be redeemed at the NAV per Unit of the Fund as at the next valuation point. Take for example, the price of Units for redemption request received before 3.00 p.m. (cut off time) will be calculated based on the valuation of the Units on the same Business Day. Whereas, a redemption request received after 3.00 p.m. (cut off time), the request will be processed based on the NAV per Unit on the following Business Day. The minimum redemption for the Fund is 500 units. The Manager will not process the redemption request if the redemption request leaves you with less than 500 Units (minimum holdings). In this instance, you will be required to make an application for the Manager to liquidate all your holdings in the Fund. Redemption proceeds will be paid within 10 days from the date we receive your the redemption request. Please also note that there will be no Redemption Charge imposed. MANULIFE SHARIAH DANA SUKUK page 9

10 CONTACT INFORMATION 10. Who should I contact for further information or to lodge a complaint? For further information or internal dispute resolution, you may contact us at: (a) via phone to : (b) via to : my_utservice@manulife.com (c) via letter to : Manulife Asset Management Services Berhad (formerly known as Manulife Unit Trusts Berhad) 13 th floor, Menara Manulife 6, Jalan Gelenggang Damansara Heights Kuala Lumpur 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 Kuala Lumpur You can also direct your complaint to Securities Commission Malaysia even if you have initiated a dispute resolution process with SIDREC. To make a complaint, please contact their 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 MANULIFE SHARIAH DANA SUKUK page 10

11 APPENDIX: GLOSSARY Business Day a day on which the Bursa Malaysia is open for trading. Note: Bursa Malaysia refers to Bursa Malaysia Securities Berhad, the stock exchange managed or operated by Bursa Malaysia Berhad. Deed the Fund Guidelines Launch Date long term Management Company or the Manager or we or us MARC medium term Net Asset Value (NAV) NAV per Unit Offer Period Offer Price the Deed entered into between the Manager and the Trustee dated 04 March 2013 in relation to the Fund and registered with the Securities Commission Malaysia. the Manulife Shariah - Dana Sukuk. the Guidelines on Unit Trust Funds, issued by the Securities Commission Malaysia, as may be amended from time to time. means the date of the Prospectus of the Fund and is the date on which sale of Units of the Fund may first be made; the Launch Date is also the date of constitution of the Fund. a period of more than 5 years. means Manulife Asset Management Services Berhad (formerly known as Manulife Unit Trusts Berhad). means Malaysian Rating Corporation Berhad. a period between 3 to 5 years. 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. the NAV of the Fund divided by the number of Units in circulation at the valuation point. means the period during which Units of the Fund are offered at the Offer Price. means a fixed price per Unit payable by an investor for the purchase of Units during the Offer Period. MANULIFE SHARIAH DANA SUKUK page 11

12 APPENDIX: GLOSSARY (cont d) the Prospectus RAM Redemption Charge Sales Charge Shariah sukuk the Trustee Unit or Units Units in circulation Unit Holder or Unit Holders means the first Prospectus in respect of the Manulife Shariah - Dana Sukuk. means RAM Rating Services Berhad. means a fee to be paid by a Unit Holder when redeeming Units of the Fund. means a fee to be paid by an investor when purchasing Units of the Fund. means Islamic Law comprising the whole body of rulings pertaining to human conducts derived from the primary and secondary sources of the Shariah. The primary sources are the Quran, the Sunnah, Ijma and Qiyas while the secondary ones are those established sources such as Maslahah, Istihsan, Istishab, Uruf and Sadd Zara ie. refers to certificates of equal value which evidence undivided ownership or investment in the assets using Shariah principles and concepts endorsed by the Shariah Advisory Council of the SC, but shall not include any agreement for a financing/ investment where the financier/investor and customer/ investee are signatories to the agreement and where the financing/investment of money is in the ordinary course of business of the financier/investor, and any promissory note issued under the terms of such an agreement. Means CIMB Islamic Trustee Berhad (formerly known as CIMB Trustee Berhad). is 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. Units created and fully paid for and which has not been cancelled and is the total number of Units issues at a particular valuation point. the person registered as the holder of a Unit or Units including persons jointly registered. MANULIFE SHARIAH DANA SUKUK page 12