PRODUCT HIGHLIGHTS SHEET BIMB INVEST MONEY MARKET FUND (BIMMF) MANAGER: BIMB INVESTMENT MANAGEMENT BERHAD (276246-X) TRUSTEE: AMANAHRAYA TRUSTEES BERHAD (766894-T)
BIMB INVEST MONEY MARKET FUND ( BIMMF ) RESPONSIBILITY STATEMENT This Product Highlights Sheet has been reviewed and approved by the directors of BIMB Investment Management 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 Highlights Sheet false or misleading. STATEMENT OF DISCLAIMER The Securities Commission Malaysia has authorised the issuance of BIMB Invest Money Market Fund and a copy of this Product Highlights Sheet has been lodged with the Securities Commission Malaysia. The authorisation of BIMB Invest Money Market Fund and lodgement of this Product Highlights Sheet, should not be taken to indicate that the Securities Commission Malaysia recommends BIMB Invest Money Market 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 BIMB Investment Management Berhad responsible for BIMB Invest Money Market 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. 1
This Product Highlights Sheet only highlights the key features and risks of this unlisted capital market product. Investors are advised to request, read and understand the disclosure documents before deciding to invest. PRODUCT HIGHLIGHTS SHEET BIMB INVEST MONEY MARKET FUND ( BIMMF ) BRIEF INFORMATION ON THE PRODUCT 1. What is this product about? Product Category Manager Wholesale Islamic Money Market Fund Product Type Income BIMB Investment Trustee AmanahRaya Trustees Management Berhad Berhad The Fund will distribute income at least once a month, subject to availability of income. Every Business Day Financial Year 30 June Inception Date 27 April 2009 Distribution Policy Dealing Frequency Capital Guaranteed 2. Who is this product suitable for? No Benchmark 1-month General Investment Account (GIA) of Bank Islam Malaysia Berhad after corporate tax. PRODUCT SUITABILITY Please note that the risk profile of the Fund may be higher than the risk profile of the benchmark. Source: www.bankislam.com.my Investor s Profile Investor s Risk Profile *Qualified Investors The Fund is primarily suitable for low risk Qualified Investors who are favoring safety of principal and stability of income but recognizes that it is possible to incur losses by investing in the Fund. In summary, the Fund is suitable for investors who: would like to invest the cash portion of an investment portfolio; and/or would like to park money aside while waiting to make another investment. Low Risk a. An individual whose total net personal assets, or total net joint assets with his or her spouse, exceeds RM3 million or its equivalent in foreign currencies, excluding the value of the individual s primary residence; 2
b. An individual who has a gross annual income exceeding RM300,000 or its equivalent in foreign currencies per annum in the preceding 12 months; c. An individual who, jointly with his or her spouse, has a gross annual income of RM400,000 or its equivalent in foreign currencies per annum in the preceding 12 months; d. A corporation with total net assets exceeding RM10 million or its equivalent in foreign currencies based on the last audited accounts; e. A partnership with total net assets exceeding RM10 million or its equivalent in foreign currencies; f. A company that is registered as a trust company under the Trust Companies Act 1949 which has assets under management exceeding RM10 million or its equivalent in foreign currencies; g. A corporation that is a public company under the Companies Act 1965 which is approved by the SC to be a trustee under the CMSA and has assets under management exceeding RM10 million or its equivalent in foreign currencies; h. A pension fund approved by the Director General of Inland Revenue under the Income Tax Act 1967; i. A statutory body established by an Act of Parliament or an enactment of any State; j. Central Bank of Malaysia established under the Central Bank of Malaysia Act 2009; k. A holder of a Capital Markets Services Licence; l. An executive director or chief executive officer of a holder of a Capital Markets Services Licence; m. A unit trust scheme or a prescribed investment scheme; n. A closed end fund approved by the SC; o. A licensed institution as defined in the Banking and Financial Institutions Act 1989 or an Islamic bank as defined in the Islamic Banking Act 1983; p. A Labuan bank as defined under the Labuan Financial Services and Securities Act 2010; q. An insurance company registered under the Insurance Act 1996; r. An insurance licensee licensed under the Labuan Financial Services and Securities Act 2010; s. A takaful licensee licensed under the Labuan Islamic Financial Services and Securities Act 2010; t. A takaful operator registered under the Takaful Act 1984; u. A private retirement scheme as defined in the CMSA. Investment Horizon Note: *As per the Capital Markets and Services (Amendment) Act 2012 and the Guidelines on Sales Practices of Unlisted Capital Market Products issued on 28 December 2012. Short or medium term investment horizon 3
KEY PRODUCT FEATURES 3. What am I investing in? Shariah Principles Applicable 1- Investor appoints the Manager to manage and invest the fund under the Islamic contract of Wakalah Bil Istithmar or Agency for Investment. 2- BIMB Invest is appointed to undertake the investment activities on behalf of the investor for a fee ( Ujrah ). 3- A Trustee is the independent party to safeguard the investor s assets of the Fund and ensure the Manager acts in accordance with the Deed and SC Guidelines under Islamic contract of Wadi ah Yad Dhamanah or Guaranteed Safekeeping. Investment Objective The Fund seeks to provide liquidity* and current income**, while maintaining capital stability*** by investing in instruments that comply with Shariah requirements. Note: Investment Policies & Strategies Asset Allocation Transaction Of Unit *liquidity refers to T or T+1 whereby T is the Business Day where a request/application to redeem is received by the Manager before the cutoff time. **Income will be in the form of Units ***The Fund is not a capital guaranteed fund or a capital protected fund. BIMMF is a money market fund that is actively managed to provide liquidity to meet the short term cash flow requirements of its Unit Holders while providing a reasonable level of current income. Consequently, the investments of BIMMF are largely confined to short term Islamic debentures issued by the Malaysian Government, Government-backed agencies, BNM and/or Malaysian corporations which carrying a minimum credit rating of AA3 (RAM or equivalent) and money market instruments, including Islamic accepted bills, banker s acceptance, certificates of deposits, commercial paper of companies carrying a minimum long term credit rating of AA3 by RAM or AA- by MARC or any equivalent credit rating by recognised credit rating agency or minimum short term credit rating of P1 by RAM or MARC-1 by MARC or any equivalent credit rating by recognised credit rating agency. Although the Fund is actively managed, the frequency of its trading strategy will very much depend on market opportunities. The Fund may invest up to 100% of the Fund s NAV in permitted investments which have a remaining maturity period of not more than 365 days. Only up to 10% of its NAV can be invested in permitted investments which have a remaining maturity period of more than 365 days but fewer than 732 days. Permitted investments are: Debentures (including Sukuk / Islamic bond); and Islamic money market instruments. Minimum Initial Minimum Additional Minimum Holding Amount Investment Investment RM100,000 RM50,000 Nil 4
Purchase of Units The minimum initial investment for Units of the Fund is One Hundred Thousand Ringgit (RM100,000) or such amount as the Manager may from time to time decide. The minimum additional investment for Units of the Fund is Fifty Thousand Ringgit (RM50,000) or such amount as the Manager may from time to time decide. Based on the above, Investor A will have 100,000 units credited into his investment account as shown below:- Amount invested = RM100,000 NAV per Unit = RM1.0000 Units credited to = 100,000 Units investor s account Sales charge per Unit = NAV per Unit x Sales Charge (%) = RM1.000 x 0.0% = Nil Total sales charge = Sales Charge per Unit x Units incurred by Investor A Credited to Investor s account = RM0.0 x 100,000 Units = Nil Total amount payable by Investor A = Amount Invested in the Fund + Sales Charge incurred = RM100,000 + RM0 = RM100,000 The above sales charge is exclusive of Goods and Services Tax (GST) or any other similar sales tax or levy which are payable by the investor. 4. Who am I investing with? Manager Corporate Profile of the Manager Trustee Solicitors Auditors Tax Adviser Shariah Committee BIMB Investment Management Berhad (BIMB Invest) BIMB Invest is a wholly-owned subsidiary of Bank Islam Malaysia Berhad. BIMB Invest, a licensed Islamic fund management company, was incorporated on 14 September 1993 and commenced its operations on 20 June 1994. BIMB Invest has been in the unit trust industry for 19 years. BIMB Invest has an authorized capital of RM20 million and issued and paid up capital of RM15 million. AmanahRaya Trustees Berhad Merssrs Naqiz & Partners KPMG Desa Megat & Co. Ernst & Young Tax Consultant Sdn. Bhd Ustaz Dr. Ahmad Shahbari @ Sobri Salamon Ustaz Dr. Yusof Ramli Ustazah Dr. Asmak Ab. Rahman 5. What are the possible outcomes of my investment? The investor may gain from the appreciation of unit price as a result of the increase in value of the underlying and/or accrual of profit earned. Losses in worst case scenario is the investor might lose all of their investment if the financial institution is unable to pay principal amount and/or issuer of sukuk defaults. 5
KEY RISKS 6. What are the key risks associated with this product? You are exposed to the following risks: a. Credit/Default Risk Credit or default risk is a concern for fixed income instruments. The risk arises when an issuer is unable to service any income payments or pay the principal amount upon maturity. In such cases, investors may suffer significant capital losses with respect to their capital invested and income foregone. b. Interest Rate Risk All investments in fixed income instruments are exposed to interest rate risk. Changes in the level of general interest rates will cause prices of fixed income instruments to change inversely. (Note: interest rate risk is a general economic indicator that will have an impact on the management of a fund regardless of whether it is an Islamic-based fund or otherwise. It does not in any way suggest that this Fund will invest in instruments, which are not Shariah-approved instruments. All investments carried out for this Fund are in accordance with requirements of the Shariah.) c. Liquidity Risk Liquidity risk is the risk that the security/instrument invested in cannot be readily sold and converted into cash. d. Concentration Risk As the Fund is allowed to invest 100% of the assets in a single financial institution, the Fund s value and/or performance will be dependent on the performance and credit of a particular financial institution. 7. What are the fees and charges involved? FEES & CHARGES There are fees and charges involved and investors are advised to consider the fees and charges before investing in the Fund. This table describes the fees and charges that you may directly incur when you purchase or repurchase Units. Sales Charge Redemption Fee Transfer Fee Switching Fee The Manager will NOT impose any sales charges on the sales of units. The Manager will NOT impose any redemption charge on any redemption. A transfer fee of RM3.00 will be charged for each transfer transaction. A switching fee may be imposed by the Manager as follows:- a. 1 st Time : Nil b. 2 nd Time onwards : RM 25 per transaction (switching fee is exempted for investors having a total investment with BIMB Invest of RM 100,000 and above). This table describes the fees that you may indirectly incur when you invest in the Fund. 6
Type of Fees The Fund pays an annual management fee of up to 0.50% per annum of the NAV to the Manager for managing the Fund. The management fee is calculated and accrued on a daily basis, payable monthly to the Manager. Management Fee Illustration: For example, assuming the NAV of the Fund is RM100 million throughout the month, and the Management fee is 0.50% p.a., then, the daily accrued management fee is : RM100 million x 0.50% x 1/365 = RM1,369.86 and monthly amount payable to the Manager is : RM1,369.86 X 30 days = RM41,095.80 The Fund pays an annual trustee fee of 0.02% per annum of the NAV of the Fund, subject to a minimum fee of RM12,000.00 per annum. The trustee fee is calculated daily and paid monthly to the Trustee. Trustee Fee Administrative Fees Other Fees Illustration: Assuming the NAV of the Fund is RM100 million throughout the month, and the Trustee fee is 0.02% p.a., then, the daily accrued trustee fee would be: RM100 million x 0.02% x 1/365 = RM54.79 and the monthly amount payable to the Trustee would be: RM54.79 X 30 days = RM1643.70 Only direct fees or costs incurred will be paid out of the Fund including but not limited to the following: Commissions/fees paid to brokers/dealers in affecting dealings in the investments of the Fund (if any); Tax and other duties charged on the Fund by the Government and other authorities (if any); The fee and other expenses properly incurred by the auditor appointed for the Fund; Fees for the valuation of any investments of the Fund by independent valuers; Cost incurred for the modification of the Deed of the Fund other than those for the benefit of the Manager or Trustee; Cost incurred for any meeting of the Unit Holders other than those convened by, or for the benefit of, the Manager or Trustee; and Other fees/expenses related to the Fund. Any applicable bank charges and other bank fees incurred as a result of purchasing or withdrawal of units will be borne by the investor. The above fees and charges are exclusive of Goods and Services Tax (GST) or any other similar sales tax or levy which will be payable by the Unit Holders. The implementation of the proposed GST will take effect from 1 April 2015. 8. How often are valuations available? VALUATIONS AND EXITING FROM INVESTMENT Valuation of the Fund is carried out at the end of each Business Day. Unit Holders will be able to obtain information pertaining to the Fund from Bank Islam s website on http://www.bankislam.com.my. The daily NAV per Unit of the Fund is available at the Manager s business office. 7
9. How can I exit from this investment and what are the risks and costs involved? You can exit from the fund by redeeming your investments in the Fund at any point in time by simply completing the repurchase application form and returning it to the business office of BIMB Invest and/or at the nearest Bank Islam branches during normal business/banking hours. Minimum units that can be redeemed/repurchased are 1,000 units or units equivalent to RM1,000 (whichever is higher) or such amount as the Manager may from time to time decide. You will receive the redemption/repurchased proceeds on the next Business Day after the repurchase application is received by the Manager before the cut off time. The cut off time for a repurchase transaction is 10.30 a.m. on a Business Day. Any repurchase application received after 10.30 a.m. (cut off time) will be considered as received on the next Business Day. Such repurchase requests are deemed received and shall be irrevocable only if all documents and forms received by the Manager are duly and correctly completed. The following illustrations demonstrate the two (2) computation methods of repurchase: Computation no. 1 Repurchase request by giving total absolute ringgit instruction Repurchase Amount Request = RM10,000 Repurchase Charge = 0% NAV per Unit Total Units to Repurchase Computation no. 2 Repurchase request by giving total number of units instruction Repurchase Units Request Repurchase Charge = 0% NAV per Unit Total Repurchase Proceeds = RM1.000 = 10,000 Units = RM1.000 CONTACT INFORMATION = Repurchase Units x NAV per Unit = 10,000 Units x RM1.000 = RM10,000 10. Who should I contact for further information or to lodge a complaint? You may contact us at the following address: BIMB Investment Management Berhad Level 19, Menara Bank Islam, No. 22,Jalan Perak, 50450, Kuala Lumpur. Tel : 03-2161 2524 / 03-2161 2924 Fax : 03-2161 2464 Toll-Free Number : 1800-88-1196 = Repurchase Amount divided by NAV per Unit = RM10,000 / RM1.000 = 10,000 Units Email Web : marketing.bimbinvest@bankislam.com.my : www.bankislam.com.my 8
Nearest Bank Islam Branches Or Other IUTA offices as follows: IFAST CAPITAL SDN BHD (782978-H) Level 28, Menara Standard Chartered No.30, Jalan Sultan Ismail,50250 Kuala Lumpur. PHILLIP MUTUAL BERHAD B-2-7, Block B, Unit 7,Megan Avenue II,12, Jalan Yap Kwan Seng 50450 Kuala Lumpur. Tel : 03-2783 0300 Fax : 03-2166 6417 Customer Service Hotline No: 03-2783 0200 Fax : 03-2711 3036 Email : phillipmutual@poems.com.my 11. For internal dispute resolution, you may contact: Feedback Channel & Distribution Department 17 th Floor, Menara Bank Islam, No.22 Jalan Perak, 50450 Kuala Lumpur. Fax: 03-2782 1337 12. 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 : 03-2282 2280 b. via fax to : 03-2282-3855 c. via email to : info@sidrec.com.my d. via letter to : Securities Industry Dispute Resolution Center (SIDREC) Unit A-9-1, Level 9, Tower A Menara UOA Bangsar No. 5, Jalan Bangsar Utama 1 59000 Kuala Lumpur 13. 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 : 03-6204 8999 b. via fax to : 03-6204 8991 c. via e-mail to : aduan@seccom.com.my d. via online complaint form available at :www.sc.com.my e. via letter to : Investor Affairs & Complaints Department Securities Commission Malaysia No 3 Persiaran Bukit Kiara Bukit Kiara 50490 Kuala Lumpur. 9
APPENDIX : GLOSSARY Business Day(s) Fund Medium Term NAV SC Short Term A day on which Bursa Malaysia is open for trading in securities. BIMB Invest Money Market Fund. A period between 3 and 5 years. Net Asset Value Securities Commission Malaysia. Means a period of less than 365 days. 10