Information Memorandum relating to AMB Dana Arif ( AMBDA or the Fund ) This document is important. The offer or invitation which is the subject of this Information Memorandum (i.e. classes of Units in AMB Dana Arif) is not allowed to be made to the retail public in Singapore. This Information Memorandum is not a prospectus as defined in the Securities and Futures Act, Chapter 289 of Singapore ( the Act ). Accordingly, statutory liability under the Act in relation to the content of prospectuses would not apply. The Monetary Authority of Singapore takes no responsibility for the contents of this document. You should consider carefully whether an investment in the Fund is suitable for you. This Information Memorandum does not constitute an offer or solicitation by anyone in any jurisdiction in which an offer or solicitation is unlawful or in which the person making such offer or solicitation is unqualified 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 Information Memorandum 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. The Units in the Fund, if subscribed for or purchased in Singapore, may be transferred subject to compliance with applicable laws and regulations. Please refer to Section 10.6 of the Malaysian Prospectus for further information on Transfer of Units. AMB Dana Arif is an open-ended Shariah-compliant unit trust fund constituted in Malaysia which offers investments in multi classes of Units. The registered office of Amanah Mutual Berhad (the Manager or AMB ) is at 4 th Floor, Balai PNB, 201-A, Jalan Tun Razak, 50400 Kuala Lumpur, Malaysia. The Manager is subject to the supervision of the Securities Commission Malaysia (the Authority ). The Authority s contact details are as follows: Address:No. 3 Persiaran Bukit Kiara, Bukit Kiara, 50490 Kuala Lumpur, Malaysia Telephone No.: +603 6204 8999 Facsimile No.: +603 6204 8991 The Trustee for the Fund is AmanahRaya Trustees Berhad. The Trustee is incorporated in Malaysia since 2007 and is registered as a trust company under the Trust Companies Act 1949, with its registered address at Tingkat 11, Wisma AmanahRaya, No. 2, Jalan Ampang, 50508 Kuala Lumpur.
Investment objective, focus and approach of the Fund and the investment approach of the Manager for the Fund Investment objective To provide a steady appreciation of the NAV of the Fund with a regular flow of income to investors through investments in debt securities that are permissible under Shariah Principles. Any material change to the investment objective of the Fund would require Unit Holders approval. The performance of the Fund will be benchmarked against the 12-month General Investment Account rates of commercial banks, which is obtainable from Bank Negara Malaysia website. Investment policy and strategy The Fund invests in Sukuk and Shariah-compliant money market instruments to meet its objectives of providing a steady stream of profit income and potential Long Term capital gains. Its Shariah-compliant investments consist of Sukuk which are rated minimum A3 by RAM or equivalent ratings by other rating agencies and Shariah-compliant money market instruments, which will ensure a regular income yield to the Fund. The External Investment Manager (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 i.e. portfolio rebalancing. 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. The Fund concentrates on investing in quality Sukuk and Shariah-compliant money market instruments which provide yields for the Medium to Long Term period. The portfolio aimed at preserving the principle investment whilst achieving returns better than the prevailing fixed deposit rates on annualised basis, at an acceptable level of risk. The portfolio shall invest in investment grade Sukuk and Shariah-compliant money market instruments that are deemed to be fundamentally sound. In addition, the portfolio also concentrates on securities that have yields and trading opportunities. Investment decisions will be made after thorough assessment on companies, using in-house fundamental research supported by external research and companies' prospectuses. Investment shall be made in Sukuk with minimum credit ratings of P2 for short term papers or A3 for long term papers by RAM or equivalent ratings by other rating agencies. The EIM shall undertake to conduct a thorough and rigorous credit assessment of potential investments and constant monitoring of current investments. A filtration process is employed for securities selection to ensure selection which complements the objective of the portfolio. The filtration process includes credit rating, financial ratio analysis, management quality assessment and structure of a particular instrument. The asset allocation for the Fund is as follows: Min 70% to max 98% in Sukuk and Shariah-compliant money market instruments Min 2% to max 30% in Shariah-compliant Liquid Assets. The Fund is actively managed and the frequency of the Fund s trading strategy is dependent on market opportunities.
When deemed appropriate and for the benefit of the Fund, the EIM may take temporary defensive positions in dealing with adverse market, economic, political and other conditions, that may be inconsistent with the Fund s principal strategy. In this regard, the Fund may hold cash or cash equivalent instruments as the Fund s only assets. Risks Summary Potential investors are asked to carefully read the Malaysian Prospectus in full before making any investment. Prior to investing one should consider the elements of risks associated to the investments as the values of the investment could fluctuate due to the risks stated below. Investors are reminded that the list of risk may not be exhaustive and if necessary they should consult their advisors for a better understanding of the risks. General Risks The general risks to which the Fund may be exposed to are: market risk returns not guaranteed non-compliance risk loan/financing risk inflation risk force majeure risk liquidity risk reclassification of Shariah status fund management risk risk operational risk Specific Risks The following specific risks are associated with investments in this Fund: credit risk class currency risk interest rate risk country risk For further information on the above, please refer to Section 4 and Section 5.3 of the Malaysian Prospectus. Conditions, limits and gating structures for purchase / repurchase of Units Cut-off time for purchase price of Units (1) Application for initial investment direct with AMB Completed applications to purchase Units will be processed on the same Business Day if received by 2.30 p.m. with cleared payment. The applicable Purchase Price of Units would be based on the NAV per Unit at the end of the Business Day on which the application to purchase is received by the Manager. Any application received or deemed to have been received after this cut-off time would be considered as being transacted on the next Business Day and would be subjected to the Manager s pricing on the next Business Day. For investment made via Employees Provident Fund ( EPF ) withdrawal, the Purchase Price of Units will be on the date EPF releases the payment.
(2) Application for initial investment with Distribution Channels For investment through Distribution Channels, kindly refer to the respective Distribution Channels for cut-off time procedures. The amount paid to the Manager will be deposited into the trust account maintained by the Trustee no later than 10 days from the date of receipt of the completed application. The Trustee s obligation arises when the investment amount is deposited into the trust account. Cut-off time for Repurchase Price of Units Applications to repurchase Units will be processed on the same Business Day if received by 2.30p.m. The applicable repurchase price would be based on the NAV per Unit at the end of the Business Day on which the completed repurchase application is received by the Manager. Any application received or deemed to have been received after this cut-off time would be considered as being transacted on the next Business Day and would be subjected to the Manager s pricing on the next Business Day. The Manager will pay the net repurchase proceeds to the Unit Holder or the Unit Holder s EPF account within 10 days from the receipt of the request to repurchase provided that all documentation are complete. In the event of any technical difficulties beyond the Manager s control or should the repurchase request result in the sale of assets which cannot be liquidated at an appropriate price or on adequate terms and is as such not in the interest of the existing Unit Holders, redemption monies may be paid at such other period as may be permitted by the relevant authorities from time to time. For more information on the repurchase of Units, transfer of Units, switching of Units and conversion of Units, please refer to Sections 10.5 to 10.8 of the Malaysian Prospectus and the Manager s website at www.ambmutual.com.my. Fees and charges (a) Charges (1) Sales charge Unit Holders have to pay a sales charge upon purchase of Units in addition to the investment amount. The maximum sales charge for the Fund is as follows:- Class Direct investment through the Manager Maximum sales charge (% of NAV per Unit) Distribution Channel Maximum sales charge (% of NAV per Unit) A-MYR 2.0 2.0 C-MYR 2.0 2.0 A-SGD 2.0 2.0 The sales charge for the Fund is negotiable, subject to the discretion of the Manager. Note: The above charges do not include GST which is payable by Unit Holders.
The sales charge for investments under the EPF Members Investment Scheme shall not exceed 3% of NAV per Unit, as regulated by EPF. (2) Repurchase charge The Manager does not impose a repurchase charge on the repurchase of Units by the Unit Holders. Units are repurchased by the Manager at NAV per Unit. (3) Switching charge This facility enables Unit Holders to switch Units of the Fund to Units of other funds managed by the Manager. Units switched are transacted at the Fund s NAV. The minimum investment that can be switched per transaction is 1,000 Units. Distribution units of conventional funds cannot be switched to Shariah funds within the AMB Family of Funds. However the principal amount of conventional funds is allowed to be switched to Shariah funds. The switching charges for AMBDA is as follows: Switch from the following Classes to any other Fund Switching Charge A-MYR MYR 25 C-MYR MYR 25 A-SGD SGD 25 Note: The above charges do not include GST which is payable by Unit Holders. (4) Transfer charge A Unit Holder may fully or partially transfer his Units in any Class to any other Unit Holder in the same Class. The transfer charge per transaction for the Fund is as follows: Class Transfer Charge A-MYR MYR 25 C-MYR MYR 25 A-SGD SGD 25 Note: The above charges do not include GST which is payable by Unit Holders. (5) Conversion charge Conversion facility allows a Unit Holder to use all or part of his investment in any Class for Units in another Class at the applicable NAV per Unit. The conversion charge per transaction for each Class to another Class within AMBDA is as follows: Convert from the following Conversion Charge Classes to any other Class A-MYR MYR 25 C-MYR MYR 25 A-SGD SGD 25 Note: The above charges do not include GST which is payable by Unit Holders.
(6) 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 Deed, 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. Note: The above charges do not include GST which is payable by Unit Holders. (b) Fees (1) Annual management fee The Manager is entitled to an annual management fee. The annual management fee is calculated as the percentage of the NAV of the Fund, calculated and accrued on a daily basis before deducting the annual management fee and trustee fee for the day. The annual management fee shall be rounded to the nearest two (2) decimal points. For Classes of Units of the Fund, the annual management fee is calculated as the percentage of the NAV of the respective Classes, calculated and accrued on a daily basis before deducting the annual management fee and trustee fee for the day. The annual management fee for the Fund is as follows: Class Annual management fees (Percentage of NAV) Current year charge (Percentage of NAV)(%) Minimum value A-MYR Profit sharing scheme with the investors of the Class in the ratio of 15:85 of net investment income (1) 15:85 MYR 0.4950 C-MYR Profit sharing scheme with the investors of the Class in the ratio of 10:90 of net investment income (1) 10:90 MYR 0.4950 A-SGD Profit sharing scheme with the investors of the Class in the ratio of 25:75 of net investment income (1) 25:75 SGD 0.4950 (1) Net investment income is defined as the income of the Classless trustee fee and all permitted or allowable expenses under the Deed. If the daily net investment income for any valuation day is zero or negative, or while the NAV per Unit is less than the minimum value, the Manager shall not be entitled to any management fee for that day. Daily net investment income is defined as the difference between the total net investment income as at the valuation day and the total net investment income as at the previous valuation day. Minimum value is taken to mean that the NAV per Unit shall not be less than as prescribed above. If there is any decrease in the NAV as a result of the distribution or sub division of Unit, then the minimum value shall be adjusted accordingly.
Note: The above fees do not include GST which is payable by the Fund. (2) Trustee fee The Trustee is entitled to a fee at a rate of up to 0.07% per annum of the NAV of each of theclass, (before deducting annual management fee and trustee fee for the day), subject to a minimum fee of MYR18,000 per annum per Fund calculated on a daily basis. Note: The above fee does not include GST which is payable by the Fund. (c) Fund s Expenses The annual management fee, trustee fee, the auditor s fee and other relevant professional fees, the costs of distribution of annual reports, tax vouchers, distribution warrants, cost of modification of Deed 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 (including any applicable GST) shall be paid out of the Fund. These costs are already factored into any quoted Unit price. The Fund s expenses are apportioned to each Class based on the Multiclass Ratio (the MCR ) except for the management and trustee fee. (d) Others Policy on brokerage rebates and soft commissions It is the policy of the Manager, the Trustee and their delegates to channel all rebates, if any, received from brokers/dealers to the Fund. The Manager and its delegates my retain goods and services (soft commissions) provided by any brokers/dealers, only if the goods and services are of demonstrable benefit to the Unit Holders of the Fund. The Manager will ensure that the acceptance of the soft commissions does not affect the dealings by the provider of the commissions, which are to be executed on a best execution basis. The above soft commissions are in the form of the following:- (i) research materials; (ii) data and quotation services; (iii) investment-related magazines, journals and other related trade publications; and (iv) computer applications software. Please refer to Section 9 of the Malaysian Prospectus for further details on the fees and charges. There are fees and charges involved and investors are advised to consider them before investing in the Fund.
Past performance of the Fund Please refer to Section 7 of the Malaysian Prospectus for details on the past performance of the Fund and its benchmark. Accounts of the Fund Financial Year End The financial year end of the Fund is 31 May of each calendar year. Annual Reports and Interim Reports The Manager shall submit a copy of the interim report and lodge the annual report (which have been certified by the auditors) with the Securities Commission Malaysia within two (2) months after the interim and financial year end. The interim report and the annual report of the Fund will then be sent out to Singapore unit holders through AMB s appointed distributors in Singapore. The annual reports and semi-annual reports of the Fund are available at AMB s appointed distributors offices in Singapore and their addresses can be obtained from AMB s office. This Information Memorandum incorporates and should be read in conjunction with the Malaysian Prospectus. No person is authorised to give any information or to make any representation concerning AMB Dana Arif other than as contained in this Information Memorandum. If you are in any doubt about the contents of this Information Memorandum, you should consult your legal adviser or obtain any other independent professional advice.
Glossary A-MYR A-SGD AMB Family of Funds Business Day(s) C-MYR Class(es) Deed Distribution Channel External Investment Manager or EIM GST Liquid Assets Long Term Malaysian Prospectus Medium Term Multiclass Ratio or MCR Class of Units of AMBDA denominated in MYR under income distribution policy. Class of Units of AMBDA denominated in SGD under income distribution policy. All funds under the management of the Manager. 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. 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 deed including any supplementary deeds between the Manager, the Trustee and the Unit Holders for the Fund. An institution, corporation or an organisation that is appointed by Amanah Mutual Berhad for the purpose of marketing and distributing the Fund in Malaysia and outside Malaysia as allowed by the applicable laws. CIMB-Principal Asset Management Berhad. Goods and Services Tax. 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 Master Prospectus for Shariah Funds is dated 17 September 2015 and expires on 16 September 2016 and has been registered with the Securities Commission Malaysia. A period between three (3) to five (5) years. The apportionment of the NAV of each Class over AMBDA 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. MYR NAV Purchase Price of Units RAM Shariah Principles Sukuk Units Unit Holders The lawful currency of Malaysia i.e. Malaysian Ringgit. Net asset value. 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). 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. 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 Securities Commission Malaysia. Units of any Class of the Fund. 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.