PREFACE Dear valued investors and prospective clients, Thank you for your interest in our Funds. Our comprehensive range of funds offers a full spectrum of investment solutions to meet your specific investment needs and objectives. You can find information on our funds in our latest Master Prospectus for Shariah Funds and Master Prospectus for Conventional Funds which are available at our business office and appointed Distribution Channels. This master prospectus is for the following Shariah funds managed by Amanah Mutual Berhad ( AMB ) namely: Fund Category 1) AMB Dana Yakin (AMBDY) Equity fund 2) AMB Dana Ikhlas (AMBDI) Balanced fund 3) AMB Dana Arif (AMBDA) Sukuk fund 4) AMB Dana Nabeel (AMBDN) Money market fund Please take your time to refer to the key features of the Funds in section 3 of this master prospectus. You can find details such as investment objectives, asset allocation, investment policies and strategies in here. This way, you can determine the type of fund that may be suitable for your investment needs. Please note that there are risks involved in all investments. The risk profile of a Fund depends on the assets composition of the Fund s underlying investments as well as market conditions. You can refer to section 4 of this master prospectus for the inherent risks of investing in the Funds. There are fees and charges that will be directly and indirectly incurred by investors when Units of the respective Funds are purchased or repurchased. Further details of these fees and charges are also disclosed in section 9 of this master prospectus. Investments in our Funds can be made directly at our office at 34th Floor, Menara PNB, 201 A Jalan Tun Razak, 50400 Kuala Lumpur or at any of AMB s appointed Distribution Channels nationwide. Corporate details of the Distribution Channels are available in section 20 of this master prospectus. We hope you will find the information in this master prospectus useful. For your investment consideration, should you have any further inquiries, you may call AMB Client Services at +603 2034 0800 or email us at ambcare@pnb.com.my. You are also welcome to browse our company website at www.ambmutual.com.my for more information. As always, thanking you for allowing us to be of service to you. Yours faithfully, For and on behalf of Amanah Mutual Berhad Aldilla@Zilfalila binti Abdul Halim Chief Executive Officer
RESPONSIBILITY STATEMENT This master prospectus has been reviewed and approved by the directors of Amanah Mutual 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, that there are no false or misleading statements, or omission of other facts which would make any statement in the master prospectus false or misleading. STATEMENTS OF DISCLAIMER The Securities Commission Malaysia has authorised the Funds and a copy of this master prospectus has been registered with the Securities Commission Malaysia. The authorisation of the Funds and registration of this master prospectus, should not be taken to indicate that the Securities Commission Malaysia recommends the said Funds or assumes responsibility for the correctness of any statement made or opinion expressed or report contained in this master prospectus. The Securities Commission Malaysia is not liable for any non-disclosure on the part of the management company responsible for the said Funds and takes no responsibility for the contents in this master prospectus. The Securities Commission Malaysia makes no representation on the accuracy or completeness of this master prospectus, and expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of its contents. INVESTORS SHOULD RELY ON THEIR OWN EVALUATION TO ASSESS THE MERITS AND RISKS OF THE INVESTMENT. IF INVESTORS ARE UNABLE TO MAKE THEIR OWN EVALUATION, THEY ARE ADVISED TO CONSULT PROFESSIONAL ADVISERS. ADDITIONAL STATEMENTS No units of the said Funds will be issued or sold based on this master prospectus later than one (1) year after the date of this master prospectus. Investors should note that they may seek recourse under the Capital Markets and Services Act 2007 for breaches of securities laws and regulations including any statement in the master prospectus that is false, misleading, or from which there is a material omission; or for any misleading or deceptive act in relation to the master prospectus or the conduct of any other person in relation to the Funds. AMB Dana Yakin, AMB Dana Ikhlas, AMB Dana Arif and AMB Dana Nabeel have been certified as being Shariah compliant by the Shariah adviser appointed for the said Funds. The Fund will not be offered for sale in the United States of America, its territories or possessions and all areas subject to its jurisdiction, or to any U.S. Person(s). Accordingly, investors will be required to certify that they are not U.S. Person(s) before making an investment in the Fund. In the event the Manager becomes aware that a U.S. Person is holding Units, a notice will be issued to that person requesting him/her to either withdraw his/her units or transfer his/her units to a non- U.S Person within thirty (30) days. CONSENT TO DISCLOSURE The Manager shall be entitled to transfer, release and disclose from time to time any information relating to the investors: to the Manager s parent company, subsidiaries, associate company, affiliates, delegates, service providers and/or agents (including outsourcing agents and data processors) for any purpose on the basis that the recipients shall continue to maintain the confidentiality of information disclosed; as required by law, regulation or directive, or in relation to any legal action; or to any court, regulatory agency, government body or authority. This prospectus does not constitute an offer or solicitation by anyone in any jurisdiction in which an offer or solicitation is not lawful or in which the person making such offer or solicitation is not qualified to do so or to anyone to whom it is unlawful to make such a solicitation it is the responsibility of any person in possession of this prospectus and any person wishing to apply for Units to inform themselves and to observe all applicable laws and regulations of any relevant jurisdiction. Prospective investors should inform themselves as to the legal requirements of applying for Units and any applicable exchange control regulations and taxes in the countries of their respective citizenship, residence, domicile or incorporation.
TABLE OF CONTENTS SECTION PAGE 1 GLOSSARY OF TERMS/ABBREVIATIONS 4 2 CORPORATE DIRECTORY 9 3 SUMMARY OF KEY FEATURES OF THE FUNDS 14 3.1 General Information 14 3.2 Fees and Charges 20 3.3 Other Information 23 4 RISK FACTORS 25 5 DETAILED INFORMATION ON THE FUNDS 28 5.1 AMB Dana Yakin 28 5.2 AMB Dana Ikhlas 31 5.3 AMB Dana Arif 34 5.4 AMB Dana Nabeel 37 5.5 Permitted Investments 40 5.6 Investment Restrictions 41 5.7 Exceptions and Exclusions Applicable to the Funds 43 5.8 Payment for Zakat (Tithe) 43 6 INVESTMENT PROCESS OF THE FUNDS 44 6.1 Investment Process 45 6.2 Shariah Investments 48 6.3 Bases of Valuation of Investments 50 6.4 Policy on Gearing and Liquid Assets 51 7 FUNDS PERFORMANCE 52 7.1 AMB Dana Yakin 52 7.2 AMB Dana Ikhlas 53 7.3 AMB Dana Arif 54 7.4 AMB Dana Nabeel 57 7.5 Basis Of Calculation for Funds Performance 58 8 HISTORICAL FINANCIAL HIGHLIGHTS OF THE FUNDS 8.1 Extracts of the Financial Statements of the Funds 59 8.2 Total Annual Expenses incurred by the Funds in the last Financial Year 61 8.3 Management Expense Ratio 62 AMB Client Services 03-2034 0800 1
SECTION PAGE 9 FEES, CHARGES AND EXPENSES 9.1 Charges 63 9.2 Fees 66 9.3 Funds Expenses 68 9.4 Others 68 10 TRANSACTION INFORMATION 69 10.1 Valuation of Units 69 10.2 Pricing of Units 72 10.3 Transactions Details on Initial Investment 76 10.4 Transactions Details on Additional Investment 79 10.5 Transactions Details on Repurchase of Units 80 10.6 Transfer of Units 82 10.7 Switching of Units 83 10.8 Conversion of Units 83 10.9 Distribution Channels 84 10.10 Income Distribution Policy 84 10.11 Policy on Unclaimed Monies 85 11 COMMUNICATIONS WITH UNIT HOLDERS 86 11.1 Customer Information Service 86 11.2 Regular Reports and Statements on Your Investment 86 11.3 Register of Unit Holders 87 11.4 Anti-Money Laundering Policy 87 11.5 Tax Reporting Obligations Under Foreign Account Tax Compliance Act 87 11.6 Material Contracts 88 12 THE MANAGEMENT AND ADMINISTRATION OF THE FUNDS 89 12.1 Corporate Profile of the Manager 89 12.2 Past Performance of the Manager 90 12.3 Profile of the Board of Directors of the Manager 90 12.4 Company Secretary 93 12.5 Senior Compliance Officer 93 12.6 Chief Risk Officer 93 12.7 Profile of the Key Management Staff of the Manager 94 12.8 Profile of the Investment Committee 96 12.9 Profile of the Shariah Committee 96 12.10 Retirement, Removal or Replacement of the Manager 99 12.11 Powers of the Manager to Remove the Trustee 99 12.12 External Investment Managers 100 2 AMB Client Services 03-2034 0800
SECTION PAGE 12 THE MANAGEMENT AND ADMINISTRATION OF THE FUNDS (CONTD.) 12.12.1 Permodalan Nasional Berhad 100 12.12.2 UOB Asset Management (Malaysia) Berhad 102 12.12.3 CIMB-Principal Asset Management Berhad 103 12.13 Designated Investment Manager of the Funds 106 12.14 Declaration of Conflict of Interest Involving EIMs 106 12.15 Manager s Delegate 106 12.16 Material Litigation and Arbitration 106 13 THE TRUSTEES OF THE FUNDS 107 13.1 Profile of AmanahRaya Trustees Berhad 107 13.2 Duties and Obligations of the Trustee 108 13.3 Retirement, Removal or Replacement of the Trustee 109 13.4 Powers of the Trustee to Remove or Replace the Manager 110 13.5 Statement of Disclaimer 110 14 SALIENT TERMS OF THE DEEDS 111 14.1 Application for Units 111 14.2 Rights and Liabilities of Unit Holders 111 14.3 Maximum Fees and Charges Permitted by the Deeds 112 14.4 Increase in Fees and Charges From the Level Disclosed in the Master 113 Prospectus and the Maximum Rate Provided by the Deeds 14.5 Permitted Expenses Payable Out of the Funds Property 113 14.6 Removal, Retirement and Replacement of the Manager and the Trustee 113 14.7 Termination of the Funds or a Class 114 14.8 Unit Holders Meeting 114 14.9 Classes of AMBDA Permitted by the Deed 116 15 EXEMPTIONS AND VARIATIONS GRANTED BY THE SC 117 16 RELATED PARTY TRANSACTIONS/CONFLICT OF INTEREST 119 17 TAX ADVISORS LETTER 122 18 CONSENTS 133 19 DOCUMENTS AVAILABLE FOR INSPECTION 134 20 LIST OF DISTRIBUTION CHANNELS 135 AMB Client Services 03-2034 0800 3
1. GLOSSARY OF TERMS / ABBREVIATIONS The following words or abbreviations shall have the following meanings in this master prospectus unless otherwise stated: A-MYR A-SGD Act or CMSA AMB or Manager AMB Family of Funds ASNB AMBDA AMBDI AMBDN AMBDY Base Currency Bursa Malaysia Business Day(s) C-MYR C-USD Class(es) Cooling-off Period Class of Units of AMBDA denominated in MYR under income distribution policy for retail investors. Class of Units of AMBDA denominated in SGD under income distribution policy for retail investors. The Capital Markets and Services Act 2007 (Malaysia), including all amendments thereto and all regulations, rules and guidelines issued in connection therewith. Amanah Mutual Berhad (195414-U). All funds under the management of the Manager. Amanah Saham Nasional Berhad (47457-V), the holding company of the Manager. AMB Dana Arif. AMB Dana Ikhlas. AMB Dana Nabeel. AMB Dana Yakin. The base currency of AMBDA i.e. MYR. The Malaysian stock exchange, operated and maintained by Bursa Malaysia Securities Berhad (635998-W). A day on which the Bursa Malaysia is open for trading in securities. Class of Units of AMBDA denominated in MYR under income distribution policy for institutional investors. Class of Units of AMBDA denominated in USD under income distribution policy for institutional investors. Any class or classes of Units of AMBDA representing similar interests in the assets of AMBDA differentiated by one or more of the following: (i) currency denomination; (ii) income distribution policy; (iii) retail or institutional investor; and (iv) rate of annual management fee. The cooling-off period of any of the Funds is within six (6) Business Days commencing from the date the Manager receives the 4 AMB Client Services 03-2034 0800
completed application to purchase Units. Cooling-off Right Deed(s) Distribution Branch Distribution Channel Eligible Market EPF External Investment Manager or EIM FBM EMAS Shariah Index FiMM Forward Pricing FSA The right given to an investor who is investing in any of the AMB Family of Funds for the first time to obtain a refund of his investment in the Fund including the sales charge if he so requests within the Cooling-off Period, save and except for 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. The deed(s) including any supplementary deeds between the Manager, the Trustee and the Unit Holders for the Fund(s). Any branch, outlet or any other premises of the Distribution Channel for the purpose of marketing and distribution of Units. An institution, corporation or an organisation that is appointed by AMB for the purpose of marketing and distributing the Funds in Malaysia and outside Malaysia as allowed by the applicable laws. Any market, such as the equity market, futures market, money market and any over-the-counter private debt securities market, as agreed in writing from time to time by the Manager and Trustee, which falls within the definition of an Eligible Market as defined in the Guidelines. Employees Provident Fund. Permodalan Nasional Berhad (PNB) for AMBDN; UOB Asset Management (Malaysia) Berhad for AMBDY; CIMB-Principal Asset Management Berhad for AMBDI and AMBDA. FTSE Bursa Malaysia EMAS Shariah Index. Federation of Investment Managers Malaysia, a self-regulatory organisation for the Malaysian unit trust industry. The price of a Unit that is the NAV per Unit calculated at the next Valuation Point after an application for purchase or repurchase request is received. The Financial Services Act 2013, including all amendments thereto and all regulations, rules and guidelines issued in connection therewith and will include any successor act. Fund(s) AMBDY, AMBDI, AMBDA and/or AMBDN. GIA GII GST General Investment Account. Government Investment Issues. Goods and Services Tax. AMB Client Services 03-2034 0800 5
Guidelines IFSA Investment Committee or IC Investment Management Agreement Islamic deposits IUTA Licensed Financial Institution Liquid Assets Long Term LPD Maybank MCR or Multiclass Ratio Medium Term Net Asset Value or NAV The Guidelines on Unit Trust Funds and any other relevant guidelines on unit trust funds issued by the SC as amended, modified or varied by any notes, circular and guidelines issued from time to time by the SC. The Islamic Financial Services Act 2013, including all amendments thereto and all regulations, rules and guidelines issued in connection therewith and will include any successor act. The investment committee of the respective Funds which is primarily responsible for formulating, implementing and monitoring the investment management strategies of the Funds in accordance with the respective investment objectives of the Funds. The agreement between AMB and the EIM setting out the terms and conditions upon which the respective EIM has been appointed and has agreed to act as the EIM of the respective Funds. Has the same meaning as given under the IFSA. Any institutional unit trust adviser, which is an institution, a corporation or an organisation that is registered with FiMM or other relevant authorities for distribution of unit trust funds. Any bank or financial institution licensed under the FSA or IFSA or if the institution is outside Malaysia, any institution that is licensed/registered/approved/authorised by the relevant banking regulator to provide financial services. Financial assets with characteristics including, but not limited to, the following: (i) easily convertible in large sums into cash at short notice; (ii) low counter party credit risks; and (iii) have sufficiently deep secondary market which continues to exist during tight liquidity situations. (Source: Bank Negara Malaysia Liquidity Framework 1998) A period of more than five (5) years. The latest practicable date for the purposes of ascertaining the information contained in this master prospectus, i.e. 30 June 2015. Malayan Banking Berhad (3813-K). The apportionment of the NAV of each Class over the Fund s NAV based on the size of each Class. The MCR is calculated by dividing the NAV (MYR) of the respective Class by the NAV of the Fund before income and expenses for the day. The apportionment is expressed as a ratio and calculated as a percentage. A period between three (3) to five (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 6 AMB Client Services 03-2034 0800
management fee and annual trustee fee, the NAV should be inclusive of the management fee and trustee fee for the relevant day. The NAV of a Class is the NAV of the Fund attributable to a Class at the same Valuation Point. NAV per Unit PNB Purchase Price of Units RAM RM or Ringgit or MYR Repurchase Price of Units For AMBDY, AMBDI and AMBDN, the NAV of the Fund divided by the number of Units in Circulation, at the Valuation Point. For AMBDA, the NAV attributable to a Class divided by the number of Units in Circulation for that Class, at the Valuation Point. Permodalan Nasional Berhad (38218-X), the ultimate holding company of the Manager. For AMBDY, AMBDI and AMBDN, the buying price of Units by Unit Holders in the Funds is calculated at NAV per Unit as at the next Valuation Point after the complete application is received by the Manager. For AMBDA, the buying price of Units by Unit Holders of any Class is calculated at NAV per Unit as at the next Valuation Point after the complete application is received by the Manager. RAM Rating Services Berhad (208095-U). The lawful currency of Malaysia i.e. Malaysian Ringgit. For AMBDY, AMBDI and AMBDN, the repurchase price of Units by Unit Holders in the Funds is calculated at NAV per Unit as at the next Valuation Point after the complete repurchase request is received by the Manager. For AMBDA, the repurchase price of Units by Unit Holders of any Class is calculated at NAV per Unit as at the next Valuation Point after the complete repurchase request is received by the Manager. SAC SC Shariah Committee Shariah Principles Short Term SGD or SGD $ Sukuk Shariah Advisory Council. Securities Commission Malaysia. The committee appointed by the Manager to the Funds. Principles derived from Islamic law originating from the Qur an (the holy book of Islam), and its practices and explanations rendered by the prophet Muhammad (pbuh) and ijtihad of ulamak (personal effort by qualified Shariah scholars to determine the true ruling of the divine law on matters whose revelations are not explicit. A period of less than three (3) years. The lawful currency of Singapore i.e. Singapore Dollar. Certificates of equal value which evidence undivided ownership or investment in the assets using Shariah principles and concepts AMB Client Services 03-2034 0800 7
endorsed by the SAC of the SC. Trustee Unit Holder(s) Unit(s) Units in Circulation or UIC U.S (United States) Person(s) USD or USD $ Valuation Point AmanahRaya Trustees Berhad (766894-T) as trustee for the Funds. For AMBDY, AMBDI and AMBDN, a person or persons registered as holder(s) of Units of the Funds and whose name(s) appear(s) in the register of Unit Holders. For AMBDA, a person or persons registered as holder(s) of Units of any Class and whose name(s) appear(s) in the register of Unit Holders. Unit(s) of AMBDY, AMBDI, AMBDN and/or units of any Class of AMBDA. Units created and fully paid. (i) a U.S. citizen (including those who hold dual citizenship or a greencard holder); (ii) a U.S. resident alien for tax purposes; (iii) a U.S. partnership; (iv) a U.S. corporation; (v) any estate other than a non-u.s. estate; (vi) any trust if: (a) A court within the U.S. is able to exercise primary supervision over the administration of the trust; and (b) One or more U.S. Persons have the authority to control all substantial decisions of the trust; (vii) any other person that is not a non-u.s. Person; or (viii) any definition as may be prescribed under the Foreign Account Tax Compliance Act (FATCA), as may be amended from time to time. The lawful currency of the United States of America i.e. United States Dollar. Such time(s) on a Business Day as may be decided by the Manager wherein the NAV of the Funds / Classes is calculated. Under normal circumstances, only one (1) valuation is conducted on each Business Day. For the avoidance of doubt, any references to time in this master prospectus shall refer to Malaysian local time which is Greenwich Mean Time (GMT) + 8:00. Definitions or meanings of words not otherwise expressly defined above shall have the meaning or interpretation as ascribed in the Act, the Guidelines and any other relevant laws governing unit trust funds. 8 AMB Client Services 03-2034 0800
2. CORPORATE DIRECTORY MANAGER Amanah Mutual Berhad (195414-U) Registered Office 4th Floor, Balai PNB 201-A, Jalan Tun Razak 50400 Kuala Lumpur Telephone : (603)-2050 5100 Facsimile : (603)-2163 3477 Business Office 34th Floor, Menara PNB 201-A, Jalan Tun Razak 50400 Kuala Lumpur Telephone : (603)-2034 0800 Facsimile : (603)-2162 5958 / (603)-2163 3212 AMB Client Services : (603)-2034 0800 Email : ambcare@pnb.com.my Website : www.ambmutual.com.my Business Hours : 9.00 a.m. to 6.00 p.m. BOARD OF DIRECTORS Tun Ahmad Sarji bin Abdul Hamid Chairman (Non-Executive/Non-Independent Director) Tan Sri Dato Sri Hamad Kama Piah bin Che Othman (Non-Executive/Non-Independent Director) Tan Sri Dato Dr. Wan Mohd. Zahid bin Mohd. Noordin (Non-Executive/Independent Director) Tan Sri Dato Md. Desa bin Pachi (Non-Executive/Independent Director) Encik Mohammad bin Hussin (Non-Executive/Non-Independent Director) INVESTMENT COMMITTEE Tun Ahmad Sarji bin Abdul Hamid Chairman (Non-Independent member) Tan Sri Dato Dr. Wan Mohd. Zahid bin Mohd. Noordin (Independent member) Tan Sri Dato Md. Desa bin Pachi (Independent member) AMB Client Services 03-2034 0800 9
SHARIAH COMMITTEE Dato Dr. Abdul Halim bin Ismail Chairman Prof. Datuk Dr. Syed Othman bin Syed Hussin Alhabshi Prof. Dato Dr. Abdul Monir bin Yaacob Prof. Dato Dr. Mahmood Zuhdi bin Hj Ab Majid Datuk Dr. Mohd Daud Bakar AUDIT COMMITTEE Tan Sri Dr. Wan Abdul Aziz bin Wan Abdullah Chairman (Independent member) Tan Sri Dato Md. desa bin Pachi (Independent member) Tan Sri Datuk Amar Bujang bin Mohammed Bujang Mohammed Nor (Independent member) COMPLIANCE COMMITTEE Tan Sri Dr. Wan Abdul Aziz bin Wan Abdullah Chairman (Independent member) Tan Sri Dato Sri Hamad Kama Piah bin Che Othman (Non-Independent member) Tan Sri Dato Md. Desa bin Pachi (Independent member) Encik Paisol bin Ahmad (Non-Independent member) RISK MANAGEMENT COMMITTEE Tan Sri Datuk Amar Bujang bin Mohammed Bujang Mohammed Nor Chairman Tan Sri Asmat bin Kamaluddin Tan Sri Dato Md. Desa bin Pachi Tan Sri Dato Seri Ainum binti Mohamed Saaid COMPANY SECRETARY Puan Adibah Khairiah binti Ismail @ Daud (MIA 13755) 4th Floor, Balai PNB 201-A, Jalan Tun Razak 50400 Kuala Lumpur 10 AMB Client Services 03-2034 0800
TRUSTEE AmanahRaya Trustees Berhad (766894-T) Registered Office: Tingkat 11, Wisma AmanahRaya No. 2, Jalan Ampang 50508 Kuala Lumpur Telephone : (603)-2055 7388 Business Office: Tingkat 2, Wisma TAS No. 21, Jalan Melaka 50100 Kuala Lumpur Telephone : (603)-2036 5129 Facsimile : (603)-2072 0322 Website : www.artrustees.com.my For AMBDA AmanahRaya Trustees Berhad s Delegate Malayan Banking Berhad (Custody & Services Dept.) 8 th Floor, Menara Maybank 100 Jalan Tun Perak, 50050 Kuala Lumpur Telephone : (603)-2070 8833 Facsimile : (603)-2032 1572 / 2070 0966 EXTERNAL INVESTMENT MANAGERS For AMBDN Permodalan Nasional Berhad (38218-X) 4th Floor, Balai PNB 201-A, Jalan Tun Razak 50400 Kuala Lumpur Telephone : (603)-2050 5100 Website : www.pnb.com.my For AMBDY UOB Asset Management (Malaysia) Berhad (219478-X) Level 22, Vista Tower, The Intermark 348 Jalan Tun Razak, 50400 Kuala Lumpur Telephone : (603)-2732 1181 Facsimile : (603)-2732 1100 Website : www.uobam.com.my AMB Client Services 03-2034 0800 11
For AMBDI and AMBDA CIMB-Principal Asset Management Berhad (304078-K) 10 th Floor, Bangunan CIMB, Jalan Semantan Bukit Damansara, 50490 Kuala Lumpur Telephone : (603)-2084 8888 Facsimile : (603)-2084 8899 Website : www.cimb-principal.com.my MANAGER S DELEGATE Permodalan Nasional Berhad (38218-X) 4th Floor, Balai PNB 201-A, Jalan Tun Razak 50400 Kuala Lumpur Telephone : (603)-2050 5100 Website : www.pnb.com.my AUDITORS Messrs. Ernst & Young (AF: 0039) Chartered Accountants Level 23A Menara Milenium, Jalan Damanlela Pusat Bandar Damansara, 50490 Kuala Lumpur Telephone : (603)-7495 8000 Facsimile : (603)-2095 5332 TAX ADVISORS For AMBDY PricewaterhouseCoopers Taxation Services Sdn. Bhd. (464731-M) Level 10, 1 Sentral, Jalan Travers, Kuala Lumpur Sentral P.O. Box 10192, 50706 Kuala Lumpur Telephone : (603)-2173 1188 Facsimile : (603)-2173 1288 For AMBDI, AMBDA and AMBDN Ernst & Young Tax Consultants Sdn. Bhd. (179793-K) Level 23A Menara Milenium Jalan Damanlela, Pusat Bandar Damansara, 50490 Kuala Lumpur Telephone : (603)-7495 8000 Facsimile : (603)-2095 5332 12 AMB Client Services 03-2034 0800
PRINCIPAL BANKER Malayan Banking Berhad (3813-K) Kuala Lumpur Main Office 100 Jalan Tun Perak 50050 Kuala Lumpur Telephone : (603)-2070 8833 Facsimile : (603)-2070 7298 Website : www.maybank.com Maybank Islamic Berhad (787435-M) Level 10, Tower A, Dataran Maybank 1, Jalan Maarof 59000 Kuala Lumpur Telephone : (603)-2297 2001 Facsimile : (603)-2297 2002 Website : www.maybankislamic.com.my SOLICITORS Messrs. Zainal Abidin & Co. Suite 1803 1806, 18th Floor, Plaza Permata Jalan Kampar Off Jalan Tun Razak 50400 Kuala Lumpur Telephone : (603)-40415266 Facsimile : (603)-40427179 FEDERATION OF INVESTMENT MANAGERS MALAYSIA (FiMM) 19-06-1, 6th Floor, Wisma Tune 19, Lorong Dungun, Damansara Heights 50490 Kuala Lumpur Telephone : (603)-2093 2600 Facsimile : (603)-2093 2700 Website : www.fimm.com.my AMB Client Services 03-2034 0800 13
3. SUMMARY OF KEY FEATURES OF THE FUNDS This section is only a summary of the salient information about the Funds. Investors should read and understand the whole master prospectus before making investment decisions. 3.1 GENERAL INFORMATION AMB DANA YAKIN (AMBDY) Details on page : Fund category / Type Investment objective of the Fund Investment strategy Asset allocation Benchmark Principal risks of investing in the Fund Investors profile Distribution policy Equity fund / Growth fund (Shariah) To achieve a steady capital growth over the Medium to Long Term period through investments permissible under the Shariah Principles. The Fund s investment strategy is to enhance the value of the Fund through diversification of equities that complies with Shariah Principles within the permitted investment parameters. Min. 70%, to max. 98% in Shariah-compliant equities Min. 2% in Shariah-compliant Liquid Assets 90% of the FBM EMAS Shariah Index. 10% of the 1-month GIA rates of commercial banks. Note: The risk profile of this Fund is different from the risk profile of the benchmark. The principal risk of investing in the Fund are equity risk, credit risk and interest rate risk. The Fund is suitable for investors who: are looking for investments in a diversified portfolio of assets that conform to the Shariah Principles. have a Medium Term to Long Term investment horizon. Income (if any) is expected to be distributed annually at the Manager s discretion, subject to the approval from the Trustee. 28 28 29 28 29, 30 84 External Investment Manager UOB Asset Management (Malaysia) Berhad (219478-X) 102 Trustee AmanahRaya Trustees Berhad (766894-T) 107 Launch date 24 November 2000 Financial year end 30 April 14 AMB Client Services 03-2034 0800
AMB DANA IKHLAS (AMBDI) Details on page : Fund category / Type Investment objective of the Fund Investment strategy Asset allocation Benchmark Principal risks of investing in the Fund Investors profile Distribution policy Balanced fund/ Income and growth fund (Shariah) To attain a mix of regular income stream and possible capital growth via investments in listed equities, Islamic debt instruments and other assets that are permissible under the Shariah Principles. The Fund invests in a wide range of assets that conforms to Shariah Principles. Min. 40%, to max. 58% in Shariah-compliant equities Min. 40%, to max. 58% in Sukuk and Shariah-compliant money market instruments Min. 2% in Shariah-compliant Liquid Assets 50% of the FBM EMAS Shariah Index. 50% of the 12-month GIA rates of commercial banks. Note: The risk profile of this Fund is different from the risk profile of the benchmark. The principal risks of investing in the Fund are equity risk, credit risk and interest rate risk. The Fund is suitable for investors who: seek a fully managed and balanced portfolio of investments that conforms to the Shariah principles have a Long Term investment horizon Income (if any) is expected to be distributed annually at the Manager s discretion, subject to the approval from the Trustee. 31 31 32 31 32, 33 84 External Investment Manager CIMB-Principal Asset Management Berhad (304078-K) 103 Trustee AmanahRaya Trustees Berhad (766894-T) 107 Launch date 17 September 2002 Financial year end 30 November AMB Client Services 03-2034 0800 15
AMB DANA ARIF (AMBDA) Details on page: Fund category / Type Investment objective of the Fund Investment strategy Base Currency Asset allocation Benchmark Principal risks of investing in the Fund Investors profile Distribution policy Sukuk fund / Income fund To provide a steady appreciation of the NAV of the Fund with a regular flow of income through investments in debt securities that are permissible under Shariah Principles. The EIM will invest in a diversified portfolio of Sukuk in order to maximise return within acceptable risk parameters. Diversification is to be done across sectors, issuers and duration. Depending on market conditions, the EIM will make the necessary adjustments and invest in Sukuk and Shariah-compliant money market instruments that best meet the Fund s objective. Preferred investments will be in Sukuk that are undervalued relative to their ratings, potential credit rating upgrade candidates, and situational issues with potential for improvement in the credit quality. MYR Min. 70% to max. 98% in Sukuk and Shariah-compliant money market instruments Min. 2% to max. 30% in Shariah-compliant Liquid Assets 12-month GIA rates of commercial banks. Note: The risk profile of this Fund is different from the risk profile of the benchmark. The principal risks of investing in the Fund includes credit risk, interest rate risk, Class currency risk and country risk. The Fund is suitable for investors who: prefer a consistent and steady appreciation in value through investments in debt instruments permissible under Shariah Principles; and posses a Long Term investment horizon. Income (if any) is expected to be distributed annually at the Manager s discretion, subject to the approval from the Trustee. 34 34 35 34 35, 36 84 External Investment Manager CIMB-Principal Asset Management Berhad (304078-K) 103 Trustee AmanahRaya Trustees Berhad (766894-T) 107 Financial year end 31 May 16 AMB Client Services 03-2034 0800
AMB DANA ARIF (AMBDA) Class A-MYR C-MYR A-SGD C-USD Currency denomination of Units MYR MYR SGD USD Launch date 27 April 2004 21 August 2013 4 September 2013 17 September 2014 Category of investor Retail Institutional Retail Institutional Distribution Policy Income Distribution Income Distribution Income Distribution Income Distribution Classes may differ in terms of currency denomination, rate of fees and charges, income distribution policy and whether offered to retail or institutional investors. A separate NAV per Unit will be calculated for each Class. The NAV per Unit will be denominated in the currency of the respective Class and may differ between Classes as a consequence of the various features of each Class. Save for these differences, Unit Holders of each Class have the same rights # and obligations under the Deed. Unit Holders should note that the assets of AMBDA are pooled and invested as a single fund and are not segregated in respect of each Class. # Please note that at a meeting of Unit Holders of any Class of Units, each Unit of that Class shall have one vote. In the case of a Unit holders meeting for the Fund, where voting proceeds by way of a poll, the NAV per Unit of each Class held by a Unit Holder present in person or by proxy shall be determined and converted to the Base Currency as at the date of issue of the notice of meeting and the vote of each Unit Holder present in person or by proxy shall be determined by the said value of the Units. Should this occur, a Unit Holder with Units in one Class may have less number of votes as compared to a Unit Holder in another Class (or vice versa), even though they hold the same number of Units. For example, assuming at date of issue of a notice of meeting of Unit Holders of the Fund: Unit Holder A holds 10,000 Units in Class A-MYR with NAV per Unit of MYR 0.5000. Unit Holder B holds 10,000 Units in Class A-SGD with NAV per Unit of SGD 0.5000. Prevailing exchange rate is 2.5000 i.e SGD 1.000 is equivalent to MYR 2.5000. Therefore: The number of votes Unit Holder A has should voting go by way of a poll is 5,000 (10,000 Units x MYR 0.5000) while the number of votes Unit Holder B has is 12,500 (10,000 x SGD 0.5000 x 2.5000). Please note the above is for illustration purposes only. AMB Client Services 03-2034 0800 17
AMB DANA NABEEL (AMBDN) Details on page : Fund category / Type Investment objective of the Fund Investment strategy Asset allocation Benchmark Principal risks of investing in the Fund Money market / Income (Shariah) The Fund aims to provide investors with high-level liquidity and regular income 1 stream to meet cash flow requirements based on Shariah Principles while maintaining capital preservation*. The Fund will invest at least 90% of the Fund s NAV in Islamic deposits, money market instruments and Sukuk with maturity of not more than 365 days and up to 10% of the Fund s NAV may be invested in Sukuk which have a remaining maturity period of more than 365 days but less than 732 days. The securities invested in would have a minimum local credit rating of at least A3 (long-term rating) or P2 (short-term rating) by RAM or equivalent rating agencies. Minimum 90% in Short Term Islamic deposits, money market instruments and Sukuk with maturity of not more than 365 days. Up to 10% in Short Term Sukuk exceeding 365 days but no longer than 732 days. Maybank 1-month GIA-i tier-1 rate Note: Investors are advised that the actual portfolio of the Fund at any given time may consist of a mix of Islamic deposits, money market instruments, and Sukuk of varying tenure and credit rating, as allowed by this master prospectus. Investors are to note that the risk profile of the Fund s portfolio may be higher than the risk profile of the benchmark. Therefore, the Fund s return can be potentially higher than the benchmark commensurate with the risk profile of the underlying assets of the Fund. Note: The risk profile of this Fund is different from the risk profile of the benchmark. The principal risks of investing in the Fund include interest rate risk, counterparty risk and credit risk. 37 37 38 37 39 Investors profile The Fund is suitable for investors with the following profile: - Seeking low risk investments that are in accordance with Shariah Principles. Seeking a fund with regular income 1 with potential yield to return better than Maybank 1-month GIA-i Tier-1 Rate. *Capital preservation does not signify that the capital/ principal invested is guaranteed/ protected by any party. 1 Distribution of income, if any, will be automatically reinvested into the Unit Holder s account. Refer to section 10.10 on page 84 for further details. 18 AMB Client Services 03-2034 0800
AMB DANA NABEEL (AMBDN) Details on page: Distribution policy Preferring Short Term investment horizon and wish to reduce exposure in higher risk investments. Ease of entry and exit 2. Monthly, depending on the level of income (if any) the Fund generates. 84 External Investment Manager Permodalan Nasional Berhad (38218-X) 100 Trustee AmanahRaya Trustees Berhad (766894-T) 107 Launch date 6 July 2011 Financial year end 30 June Investment in the Fund is not the same as placement in a deposit with financial institutions. There are risks involved and investors should rely on their own evaluation to assess the merits and risks when investing in the Fund. 2 Ease of entry and exit refers to the following features of the Fund: - No sales and repurchase charge imposed (Refer to section 3.2(a) on page 20 and section 9.1(i) on page 63). - Later cut-off time for acceptance of complete applications to purchase Units as compared to other Funds (Refer to item 4 of section 10.3 on page 78). - Shorter time period for payment of a repurchase request made by Unit Holder as compared to other Funds (Refer to item 3 of section 10.5 on page 80). AMB Client Services 03-2034 0800 19
3.2 FEES AND CHARGES (a) Charges This table describes the charges that you may directly incur when you purchase or repurchase Units of the Funds. Funds AMBDY Class Not applicable Manager/Distribution Channel (% of NAV per Unit) Maximum sales charge (1) 5.5 AMBDI 5.0 AMBDA AMBDN Repurchase charge Sales charge under EPF Members Investment Scheme Not exceeding 3% of NAV per Unit, as regulated by EPF. Transfer charge MYR25 Switching charge Refer to page 21 A-MYR 2.0 Kindly refer to MYR 25 the Manager for C-MYR 2.0 Nil the latest list of Funds approved MYR 25 A-SGD 2.0 by EPF for investment. SGD 25 C-USD 2.0 USD 25 Not applicable Nil No sales charge for EPF Member s Investment Scheme. Note: (1) The sales charge is negotiable, subject to the Manager s discretion. MYR25 The above charges do not include GST which is payable by the Unit Holders. Refer to page 21 Conversion charge Not applicable Not applicable 20 AMB Client Services 03-2034 0800
Switching charges This table describes the switching charges that you may directly incur when you switch Units of AMBDY, AMBDI, and AMBDN. To recipient Fund Switching from Equity Equity MYR25 per transaction Sukuk/Bond/ Fixed Income MYR25 per transaction Balanced MYR25 per transaction Money market Nil Sukuk/Bond/Fixed Income Up to 5% of amount switched MYR25 per transaction Up to 1% of amount switched Nil Balanced Up to 1% of amount switched MYR25 per transaction MYR25 per transaction Nil Money market Up to 5% of amount switched Up to 1% of amount switched Up to 5% of amount switched Not applicable Distribution units of conventional funds cannot be switched into Shariah funds as it is not permitted under the Shariah perspective. However the principal amount of conventional funds is allowed to be switched into Shariah funds. Note: The above table is applicable for all switching transactions, except where the sales charge of the Fund to be switched into is equal or lower than the sales charge of the Fund switched from, in which case the switching fee shall be MYR25 only. The above charges do not include GST which is payable by the Unit Holders. Other administrative charges In addition to the charges expressly allowed to be charged directly by the Manager and/or the Trustee, the Unit Holder may be required to pay a charge as allowed by the Deeds, where applicable, in respect of: a) any document supplied to the Unit Holder at the Unit Holder s request; b) bank charges, courier charges and any other relevant charges incurred for repurchase of Units; or c) any act of administrative nature carried out for the Unit Holder at the Unit Holder s request. The above charges do not include GST which is payable by the Unit Holders. AMB Client Services 03-2034 0800 21
(b) Fees This table describes the fees and expenses that you may indirectly incur when you invest in the Funds. Funds AMBDY AMBDI AMBDA AMBDN Class Not applicable Annual management fee (% of NAV) (1) 1.50 1.20-1.29 Sukuk portion : 1.00 Equity portion : 1.50 A-MYR 15:85 (3) C-MYR 10:90 (3) A-SGD 25:75 (3) C-USD 20:80 (3) Not applicable Annual trustee fee (% of NAV) (1) Fund expenses 0.08 (2) 0.07 (2) (inclusive of custodian fee) Up to 0.50 Up to 0.08 (2) the auditor s fees, tax agents fee and other relevant professional fees; the costs of printing & distribution of annual and interim reports, tax vouchers and warrants; cost of modification of the Deeds other than those for the benefits of the Manager and/or Trustee; and other notices to Unit Holders as well as expenses that are directly related and necessary for the administration of the Fund as set out in the Deed. These costs have been factored into the quoted NAV per Unit as they are related and necessary to the business of the Funds. Note: (1) The fees are calculated and accrued on a daily basis before deducting the annual management fee and trustee fee for the day, and shall be rounded to the nearest two (2) decimal places. (2) Subject to a minimum fee of MYR 18,000 per annum per Fund calculated on a daily basis. (3) Profit sharing scheme not exceeding the above mentioned ratios of the net investment income of the Class between the Manager and the Unit Holder respectively. The above fees do not include GST which is payable by the Funds. Please refer to section 9 commencing from page 63 for further details on the respective fees and charges of the Funds. There are fees and charges involved and investors are advised to consider them before investing in the Fund. 22 AMB Client Services 03-2034 0800
3.3 OTHER INFORMATION Master Prospectus For Shariah Funds 2015/2016 (i) Foreign currency bank account (FCA) for AMBDA If you are investing in a Class denominated in other than MYR, you are required to have a FCA denominated in the currency of the respective Classes with any financial institution. Any payments due to you for transaction in the respective Classes will be made to your FCA. For example, Unit Holder investing in Class B-SGD should have SGD foreign currency bank account. (ii) Investment via EPF Members Investment Scheme The Manager is a unit trust management company which offers investment through EPF Members Investment Scheme. For eligible Funds, you may withdraw a portion of your EPF savings to invest in the Funds, which may provide you the opportunity to reap capital growth, thus increasing the value of your EPF Account 1 Retirement Savings subject to rules and regulations of the EPF Members Investment Scheme from time to time. You may withdraw a portion of your EPF savings and invest in our Funds which are eligible under the EPF Members Investment Scheme. Kindly contact the Manager to confirm which Funds are currently eligible for investment via the EPF Members Investment Scheme. By investing some of your EPF savings in any of the above-mentioned Funds, you could stand to maximise the value of your retirement savings over the long-term. Upon reaching the age of 55, investment under EPF Members Investment Scheme will no longer be treated under the EPF Members Investment Scheme and Unit Holders existing investment will be converted into their own account from which Unit Holders may redeem directly. Kindly note that investment via EPF Members Investment Scheme is subject to EPF s terms and conditions and investors are encouraged to check on the related details accordingly. (iii) Regular savings plan You have the opportunity to invest through standing instruction subject to the rules and regulations of your bank. This plan makes regular savings easy and allows you to arrange transfers from your bank account to our Funds. (iv) Details of Deeds Unit Holders may refer to the following Deeds for more specific information of the Funds, which are available at the business office of the Manager: 1. Deed in relation to AMBDY dated 25 October 2000 First supplemental deed in relation to AMBDY dated 12 September 2003 Second supplemental deed in relation to AMBDY dated 26 May 2005 Third supplemental deed in relation to AMBDY dated 13 August 2008 Fourth supplemental deed in relation to AMBDY dated 17 October 2014 2. Deed in relation to AMBDI dated 4 September 2002 First supplemental deed in relation to AMBDI dated 13 August 2008 Second supplemental deed in relation to AMBDI dated 17 October 2014 AMB Client Services 03-2034 0800 23
3. Deed in relation to AMBDA dated 29 March 2004 First supplemental deed in relation to AMBDA dated 26 May 2005 Second supplemental deed in relation AMBDA dated 13 August 2008 Third supplemental deed in relation to AMBDA dated 14 March 2013 4. Deed in relation to AMBDN dated 26 April 2011 There are fees and charges involved and investors are advised to consider the fees and charges before investing in the Funds. Prospective Unit Holders should read and understand the contents of this master prospectus and if necessary, consult your professional advisor. Unit prices and distributions payable, if any, may go down as well as up. For information concerning certain risk factors which should be considered by prospective investors see Risk Factors commencing on page 25. Past performance of the Funds is not an indication of its future performance. 24 AMB Client Services 03-2034 0800
4. RISK FACTORS Master Prospectus For Shariah Funds 2015/2016 All investments carry some form of risk. Prior to investing one should consider the elements of risks associated to the investments as the values of the investment could fluctuate due to these risks. Prospective investors should consider the following risk factors in addition to the other information stated in the master prospectus: General risk Market risk For a unit trust that has Shariah-compliant equities or Shariah-compliant fixed income in its portfolio, fluctuations in the market performance due to factors such as fluctuation in interest rates, changes in economic climate, political and social environment that will affect the Shariah-compliant equities or Shariah-compliant fixed income market as a whole, will also affect the value of investment either in a positive or negative way. Non-compliance risk This is a risk of non-adherence to the Guidelines e.g. breach of investment restriction and limits, the deed and relevant laws and regulations in the management of a fund. In addition, non-compliance risk also includes not observing company s internal policy to ensure fund is managed accordingly. As a result, the value or performance of a fund may be adversely affected. To mitigate, the Manager has stringent internal controls which includes automated system with limits and controls in place and ensures that compliance monitoring processes are undertaken. Inflation risk A fund may experience a return rate lower than that of an inflation rate at any point of time. As a result, unit holders investment in a unit trust fund may have increased in monetary terms, however the purchasing power of their investment may have decreased due to inflation rate exceeding the investment return rate. Reclassification of Shariah status risk This is the risk of securities which were initially classified as Shariah-compliant securities and later classified as Shariah non-compliant. Rectification of the non-compliance i.e. disposal of the Shariah non-compliant securities in a fund s portfolio, may result in losses if the disposal of the Shariah noncompliant securities is at a price lower than the initial purchase price and affect the NAV of a fund. This risk is mitigated by regular review of a fund s compliance with the list of securities classified as Shariah-compliant by the SAC of the SC or any other relevant authorities and monthly review of the invested securities by the Shariah Committee of a fund. AMB Client Services 03-2034 0800 25
Liquidity risk This refers to the ease of liquidating an investment at or close to its fair value and is dependent on the investment s volume traded in the market. Generally, investments in securities of smaller companies or in smaller markets may expose a fund to greater liquidity risk due to smaller trading volumes as there may be smaller amounts of such securities being issued and traded in the said market. If a fund holds many securities that are illiquid, or difficult to dispose of, the value of the fund may be affected when it has to sell such securities at a discount or a loss, relative to the fair value of such securities. A fund may also face inability to honour repurchase request within a time frame stipulated under the Guidelines when the fund holds insufficient liquid assets and/or when the Manager is unable to borrow cash on a temporary basis as permitted by the Guidelines to meet repurchase request. Fund management risk Performance of a fund depends on the experience, expertise, knowledge and investment techniques of the fund manager. Poor management of a fund can cause considerable losses to the fund, which in turn may affect the capital invested. For these Funds, the fund management function is delegated to the EIMs who have experience, expertise and knowledge in managing a fund. Possible poor investment management of the Funds by the EIMs can be mitigated through consistent monitoring by the Investment Committee of the Funds which meets with the EIMs once a month. The Investment Committee is guided by the relevant rules and regulations, the Deeds, the master prospectus and the investment management agreements between AMB and the EIMs in relation to the Funds. All instruments selected and recommended by the EIMs will need the Investment Committee s approval before it can be part of the Funds portfolio. Operational risk Operational risk is typically associated to human error, system failure, ineffective processes, procedures and controls, and fraud which may cause breakdown, deficiencies or weaknesses in the operational support functions of a management company. This may result in insufficient degree of client services to an investor e.g. possible decrease of personnel to attend to client servicing, delay in attending to clients queries/requests due to system breakdown etc., and low internal control implemented by a management company. Loan/financing risk When investors apply loan/financing to finance purchase of units of a fund, they may be exposed to the inherent risk of an inability to service the loan repayments/financing payments. Investors may also be subjected to higher loan repayments/financing payments in the event that interest rate increases. In the event units are used as collateral, an investor, may be required by the financier to provide additional collateral if the unit prices fall beyond a certain level due to market conditions. If the investor fails to honour the additional collateral within the prescribed time, the units may be sold towards settling the loan/financing. 26 AMB Client Services 03-2034 0800