AMB DIVIDEND TRUST FUND RESPONSIBILITY STATEMENT This Product Highlights Sheet has been reviewed and approved by the directors or authorised committee or persons approved by the Board of Amanah Mutual 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. STATEMENTS OF DISCLAIMER The Securities Commission Malaysia has authorised the issuance of AMB Dividend Trust Fund and a copy of this Product Highlights Sheet has been lodged with the Securities Commission Malaysia. The authorisation of AMB Dividend Trust Fund and lodgement of this Product Highlights Sheet should not be taken to indicate that the Securities Commission Malaysia recommends AMB Dividend Trust 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 Amanah Mutual Berhad responsible for AMB Dividend Trust 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 Updated as at September 2015
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 PRODUCT NAME: AMB DIVIDEND TRUST FUND (AMBDTF) BRIEF INFORMATION ON THE FUND AMBDTF is managed by Amanah Mutual Berhad (AMB). It is a conventional open-ended equity fund. Therefore, the Fund does not provide capital protection or capital guarantee. The Fund s objective is to provide investors with a regular income stream and to attain medium-to-long-term capital appreciation through investing in high (and potentially high) dividend yielding equities (including foreign equities). This fund is suitable for investors who:- PRODUCT SUITABILITY are conservative and prefers receiving regular and steady income in the form of distributions. have a moderate risk appetite. KEY PRODUCT FEATURES The Fund will invest primarily in high dividend yielding stocks both in Malaysia and in Asian ex-japan markets (the latter being subject to a maximum of 30% of the Fund s total NAV). The selection of appropriate equities will be driven by the External Investment Manager s (EIM) internal screening process whereby emphasis will be placed on the sustainability of dividends, price-to-earnings ratios, gearing levels, historical volatility, as well as liquidity. FUND INFORMATION Base Currency MYR (Malaysia Ringgit) Launch Date 6 th June 2006 Financial Year End Domicile Registration Asset Allocation Benchmark Distribution Policy Manager Trustee 30 th April Malaysia Securities Commission Malaysia (SC) Min 70% max 99.80% in equities Max 20% in listed REITs. Min 0.20% max 30% in fixed income securities and cash Up to 30% of the Fund s total NAV may be invested in Asian Ex-Japan markets and/or the EIM may choose to invest solely in the domestic market. 70% of FBM KLCI + 30% of MSCI Asia Pacific ex-japan Index Note: The risk profile of this Fund is different from the risk profile of the benchmark. Income (if any), shall be distributed semi annually or annually at the discretion of the Manager, subject to the approval from the trustee. Amanah Mutual Berhad (195414-U) HSBC (Malaysia) Trustee Berhad (001281-T) 2 Updated as at September 2015
Board of Directors Investment Committee Members (ICM) EIM Tun Ahmad Sarji bin Abdul Hamid (Chairman) Tan Sri Dato Sri Hamad Kama Piah bin Che Othman Tan Sri Dato Dr. Wan Mohd. Zahid bin Mohd. Noordin Tan Sri Dato Md. Desa bin Pachi Encik Mohammad bin Hussin Tun Ahmad Sarji bin Abdul Hamid (Chairman) Tan Sri Dato Dr. Wan Mohd. Zahid bin Mohd. Noordin Tan Sri Dato Md. Desa bin Pachi Affin Hwang Asset Management Berhad (429786-T) Auditors Messrs. Ernst & Young (AF : 0039) Tax Advisor Solicitors Ernst & Young Tax Consultants Sdn Bhd (179793-K) Messrs. Zainal Abidin & Co. The Fund s investment strategy does include temporary defensive positions to protect investor from significant losses. The EIM, upon approval from ICM of AMBDTF, will execute temporary defensive positions in dealing with adverse market conditions, unstable economic situation, political upheaval and other external factors affecting market. In this regard, the Fund may hold cash at higher level than what is prescribed in the asset allocation. The Fund may also invest into cash equivalent instruments as the main asset in order to maintain low volatility. When there is excessive gains during best market scenario, AMBDTF shall realise as much profits from the portfolio holdings. This will be reflected as income to the Fund. With that, higher income distribution can be declared. General Risk KEY RISKS 1. Market risk 2. Non-compliance risk 3. Inflation risk 4. Liquidity risk 5. Fund management risk 6. Operational risk 7. Returns not guaranteed 8. Loan/financing risk 9. Force majeure risk (Source :Master Prospectus of Conventional Funds Section 4) Specific risks associated with AMBDTF Equity risk AMBDTF is subject to the volatility of prices in the share market. The volatility of prices in each stock will affect the Fund s value daily. The performance of individual stocks, which make up the portfolio, will fluctuate according to changes in the market value of the investments. The fluctuations can be significant in the Short Term and may negatively impact the performance of the Fund. However, this impact is mitigated through portfolio diversification. Credit risk This is the risk that the issuer of a bond or money market instrument may default and not be able to make timely principal and/or interest payments of the instrument concerned which would ultimately cause a reduction in the value of the Fund. Instruments with a lower credit rating would normally have greater risk of defaults. Interest rate risk This risk refers to how changes in the interest rate environment would affect the performance of a bond or money market instrument. In the event of an increasing interest rate environment, the value of bond or money market instruments in the Fund s portfolio generally may decline as yields rise. Longer term bond and money market instruments are more sensitive to changes in interest rate. Interest rate, such as the overnight policy rate set by Bank Negara Malaysia, will have an impact on the investment decisions of the Fund. 3 Updated as at September 2015
Currency risk Currency risk is also known as foreign exchange risk. It is the risk associated with investments that are denominated in foreign currencies. When the foreign currencies fluctuate in an unfavourable direction against the MYR, the investments will face currency losses in addition to the capital gains/losses. This may lead to a lower NAV of the Fund. Country risk The foreign investments of the Fund may be affected by risks specific to the country, in which it invests. Such risks include changes in a country s economic fundamentals, social and political stability, currency movements and foreign policies, etc. These may impact on the prices of listed securities in the particular country. FEES, CHARGES & GST This table describes the charges that you may directly and indirectly incur when you purchase or repurchase units of AMBDTF. Fund Manager / Distribution Channel (% of NAV per Unit) Maximum Sales Charge 1 Repurchase Charge Annual Management Fee (% of NAV) 2 Annual Trustee Fee (% of NAV) 2 0.07% per annum on NAV of the fund (local investment) AMBDTF 5.5 Nil 1.50 0.07% per annum on the local & foreign NAV of the fund (local and abroad investment) (subject to a minimum fee of MYR 18,000 per annum calculated on a daily basis) The sales charge for investments under the EPF Members Investment Scheme shall not exceed 3% of NAV per unit, as regulated by EPF. Kindly refer to the Manager for the latest list of Funds approved by EPF for investment. Notes : 1. The sales charge is negotiable, subject to the Manager s discretion. 2. Annual management fee and annual trustee fee are calculated as the percentage of the NAV of the fund, calculated on a daily basis before deducting the fees for the day. Table for switching charges for AMBDTF (Equity) to other funds of AMB Switching from To recipient fund Equity Sukuk/Bond/ Fixed Income Balanced Money Market AMBDTF MYR25 per transaction MYR25 per transaction MYR25 per transaction Nil Notes: 1. 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. 2. 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. 4 Updated as at September 2015
Transfer charge A Unit Holder may fully or partially transfer his Units in the Fund to any other Unit Holder in the same Fund. The transfer charge for AMBDTF is MYR25. Other annual operating expenses The auditor s fees, tax agents fee and other relevant professional fees; the costs of printing and distribution of annual and interim reports, tax vouchers and warrants; cost of modification of the Deed other than those for the benefit 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 (including any applicable GST) shall be paid paid out of the fund. Goods and Services Tax (GST) On 1 April 2015, GST was implemented at the standard rate of 6% to replace the existing sales tax and service tax systems. Based on the Goods and Services Tax Act 2014 which was gazetted on 19 June 2014, the Fund, being a collective investment vehicle, will be making exempt supplies. Hence, the Fund is not required to be registered for GST purposes. The Fund will incur expenses such as management fees, trustee fees and other administrative charges which will be subject to 6% GST. The 6% input tax which may be incurred on such expenses will generally not be claimable by the Fund. Any fee or charges in relation to the purchase of Units such as sales charge, switching and transfer charges is payable by Unit Holders. The quoted charges for sales charge, switching and transfer charge in the above does not include GST. 5 Updated as at September 2015
VALUATIONS AND EXITING FROM INVESTMENT The valuation of Units is based on the NAV of the Fund and is calculated at the end of the Business Day. The NAV per unit of AMBDTF is available on our website(www.ambmutual.com.my), AMB s office or any of its Distribution Channels. 1.Pricing of Units The Manager adopts the single pricing policy in calculating your investment. Single pricing equates to prices quoted and transacted at a single price. The price of Units is computed on a Forward Pricing basis. As such, Units of the Fund are transacted at the NAV per Unit at the next Valuation Point after receipt of the completed transaction request and acceptance by the Manager. Consequently, any changes in the underlying assets of the Fund will cause its Unit prices to vary. Any applicable sales charge shall be payable separately from the Purchase Price of Units. 2. Procedure to Repurchase Units Repurchase of Units can be made in part or entirety at any time by completing the repurchase form, which can be obtained at AMB s office or any Distribution Channels. Repurchase request must be made in terms of Units due to Forward Pricing policy. Below are the required documents/forms to be submitted to repurchase Units: (a) Individual investor (single or joint applicants) i. Completed repurchase form. ii. Photocopy of identity card, birth certificate (if joint applicant is a minor) or passport (if necessary). (b) Corporate investor i. Completed repurchase form. ii. Board resolution or any other necessary authorisation (if necessary). Partial repurchase of Units is permitted provided the applicable minimum holding is maintained for the Fund. There is no restriction on frequency of repurchase and number of Units a Unit Holder can redeem subject to the applicable minimum holdings. The Manager may elect not to permit a partial repurchase if the effect thereof would be that the Unit Holder holds less than the minimum holding applicable. 3. Payment for Repurchase of Units (a) By cheque The Unit Holders will receive withdrawal proceeds payment by cheque payable to the Unit Holder's or jointholders' names only. The cheque will be mailed to the address of the Unit Holders based on the application form or as may be subsequently notified in writing to the Manager. Any charges incurred such as charges for outstation cheque will be borne by the Unit Holders. (b) Transfer to a bank account Unit Holders may give AMB an instruction in writing to transfer the repurchase proceeds to Unit Holders' nominated local bank account held in Unit Holders' own name. All bank charges for the transfer will be borne by the Unit Holders. The charge will be deducted from the repurchase amount before being paid to the Unit Holders relevant bank account. Unit Holders are required to provide AMB with the relevant bank account details in order for AMB to proceed with the transfer request. It is possible for delays in the banking system to occur which are beyond our control. If the funds cannot be transferred, AMB shall draw a cheque payable to the Unit Holders. 6 Updated as at September 2015
Unit Holders may give AMB instruction in writing to transfer the repurchase proceeds to the Unit Holders' nominated bank account overseas held in Unit Holders' own name. All bank charges for the transfer will be borne by the Unit Holders. The charge will be deducted from the repurchase amount before being paid to the Unit Holders relevant bank account. Note: No repurchase proceeds will be paid in cash under any circumstances. 4. Unit Pricing & Cut-off Time for Repurchase of Units Applications to repurchase Units will be processed on the same Business Day if received by 2.30 p.m. The applicable repurchase price would be based on the NAV per Unit at the end of the Business Day on which the application to repurchase 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 (where applicable) 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 redemption 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. 7 Updated as at September 2015
CONTACT INFORMATION 1. For any enquiries and / or complaint (internal dispute resolution), you may contact: (a) AMB Client Services Unit (CSU): Tel : +603-2034 0800 Fax : +603-2162 5958 / +603-2163 3212 Email : ambcare@pnb.com.my Or you may also file your dispute at our premise: Amanah Mutual Berhad 34th Floor Menara PNB 201-A Jalan Tun Razak 50400 Kuala Lumpur (b) Distribution Channels Please refer to Section 20 of the Master Prospectus of Conventional Funds for details on the appointed Distribution Channels. Alternatively, you may also visit AMB s website at www.ambmutual.com.my 2. If you are dissatisfied with the outcome of the internal dispute resolution process, please refer your dispute to the Securities Industry Dispute Resolution Center (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 3. You can also direct your complaint to the Securities Commission 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 3 Persiaran Bukit Kiara Bukit Kiara 50490 Kuala Lumpur 8 Updated as at September 2015
APPENDIX : GLOSSARY AMB or Manager AMBDTF or Fund Bursa Malaysia Business Day(s) Currency Amanah Mutual Berhad (195414-U). AMB Dividend Trust Fund. 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. The base currency of the Fund i.e MYR (Malaysian Ringgit). Deed(s) Distribution Channel EPF External Investment Manager or EIM FBM KLCI Forward Pricing GST Investment Committee or IC Long Term Medium Term NAV or NAV of the Fund REIT SC or Securities Commission Unit Holder(s) Units The deed(s) including any supplementary deed(s) between the Manager, the trustee and the Unit Holders for the Fund. An institution, corporation or an organisation that is appointed by AMB for the purpose of marketing and distributing the Fund inside and outside Malaysia as allowed by the applicable laws. Details are provided in Master Prospectus for Conventional Funds dated 17th September 2015 on Section 20 page 190. Employees Provident Fund. The external investment manager of the fund, Affin Hwang Asset Management Berhad (429786-T). FTSE Bursa Malaysia KLCI. The price of a Unit that is the NAV per Unit calculated at the next Valuation Point after an instruction or a request is received. Goods and Services Tax. The investment committee of the Fund which is primarily responsible for formulating, implementing and monitoring the investment management strategies of the Fund in accordance with the investment objectives of the Fund. A period of more than five (5) years. 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 management fee and annual trustee fee, the NAV should be inclusive of the management fee and trustee fee for the relevant day. Real estate investment trust. Securities Commission Malaysia. A person or persons registered as holder(s) of Units of the Fund and whose name(s) appear(s) in the register of Unit Holder Units of the Fund. 9 Updated as at September 2015
Valuation Point Such time(s) on a Business Day as may be decided by the Manager wherein the NAV of the Funds is calculated. Under normal circumstances, only one (1) valuation is conducted on each Business Day. For Funds with no foreign investments, the valuation of NAV of the Funds is conducted on each Business Day at the close of Bursa Malaysia. For Funds with foreign investments, the valuation of the Funds will be conducted after the close of business of Bursa Malaysia for the relevant day, as certain foreign markets in which the Funds may invest in have yet to close due to the different time zones of these countries. As such, the Valuation Point will thus be after the close of Bursa Malaysia but not later than 9.00 a.m. (or any other such time as may be permitted by the relevant authorities from time to time) on the following day in which the Manager is open for business. 10 Updated as at September 2015