Master Prospectus 2010/2011

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Master Prospectus 2010/2011
INVESTORS ARE ADVISED TO READ AND UNDERSTAND THE CONTENTS OF THE PROSPECTUS. IF IN DOUBT, PLEASE CONSULT A PROFESSIONAL ADVISER.
FOR INFORMATION CONCERNING CERTAIN RISK FACTORS WHICH SHOULD BE CONSIDERED BY PROSPECTIVE INVESTORS, SEE “RISK FACTORS”
COMMENCING ON PAGE 37.
PREFACE
The Unit Holders of AMB Family of Funds
Dear Valued Investors and Prospective Clients,
We, at Amanah Mutual Berhad are pleased to offer a full spectrum of investment solutions to meet your
specific investment needs and objectives through our comprehensive range of funds in Conventional,
Shariah and Ethical. Our funds are in various categories depending upon the underlying assets of each
respective fund, namely Equity Funds, Fixed Income Funds and Balanced Funds.
This Master Prospectus represents AMB’s 15 funds namely :
1) PNB Structured Investment Fund (PNB SIF),
2) AMB Unit Trust Fund (AMBUTF),
3) AMB Balanced Trust Fund (AMBBTF),
4) AMB Income Trust Fund (AMBITF),
5) AMB Index-Linked Trust Fund (AMBILTF),
6) AMB Ethical Trust Fund (AMBETF),
7) AMB Value Trust Fund (AMBVTF),
8) AMB Enhanced Bond Trust Fund (AMBEBTF),
9) AMB SmallCap Trust Fund (AMBSCTF),
10) AMB Lifestyle Trust Fund Today (AMBLTF Today),
11) AMB Lifestyle Trust Fund 2014 (AMBLTF 2014),
12) AMB Dividend Trust Fund (AMBDTF),
13) AMB Dana Arif (AMBDA),
14) AMB Dana Ikhlas (AMBDI), and
15) AMB Dana Yakin (AMBDY).
In order to understand how our funds work, investors are encouraged to refer to Chapter 1 on the Summary
of Key Features which detail out the funds’ objectives, asset allocation, investment policies and strategies.
This way, investors will know which funds are suitable for their investment profile.
All investments carry some form of risks and the risk profile of a particular fund will very much depend on the
underlying investments or assets composition of the fund and market conditions. Investors can refer to
Chapter 2 of this Master Prospectus for the inherent risks of investing in AMB 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 disclosed in
Chapter 7 of this Master Prospectus.
th
Investments in our Funds can be made directly at our office at 34 Floor, Menara PNB, Jalan Tun Razak,
Kuala Lumpur or at any Maybank branches nationwide. For Shariah funds, investments may also be made
at Bank Kerjasama Rakyat branches nationwide. In addition, for PNB SIF, AMBVTF and AMBETF, you
could also invest at ASNB branches nationwide. Corporate details of our distributors are available on page
218 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 03 2034 0800 or email us at
[email protected]
As always, thanking you for allowing us to be of service to you.
Yours faithfully,
Amanah Mutual Berhad
[email protected] binti Abdul Halim (Sheila 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 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 Master Prospectus false
or misleading.
STATEMENTS OF DISCLAIMER
The Securities Commission has approved the issue of, offer for subscription or purchase,
or issue an invitation to subscribe for or purchase units of the unit trust fund and a copy
of this Master Prospectus has been registered with the
Securities Commission.
The approval, and registration of this Master Prospectus, should not be taken to
indicate that the Securities Commission recommends the Funds or assumes
responsibility for the correctness of any statement made or opinion or report
expressed in this Master Prospectus.
The Securities Commission is not liable for any non-disclosure on the part of the
management company responsible for the Funds and takes no responsibility for the
contents in this Master Prospectus. The Securities Commission 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. IN CONSIDERING THE
INVESTMENT, INVESTORS WHO ARE IN DOUBT ON THE ACTION TO BE
TAKEN SHOULD CONSULT PROFESSIONAL ADVISERS IMMEDIATELY.
No units will be issued or sold based on this Master Prospectus later than one year after
the date of this Master Prospectus.
Investors are advised to note that recourse for false or misleading statements or acts
made in connection with the Master Prospectus is directly available through sections
248, 249 and 357 of the Capital Markets and Services Act 2007.
AMB Dana Yakin, AMB Dana Ikhlas and AMB Dana Arif have been certified as being
Shariah compliant by the Shariah adviser appointed for the Funds.
Master Prospectus 2010/2011
Contents
Glossary of Terms/Abbreviations……………………………………………………………………………..............................
Corporate Information……………………………………………………………………………………………..............................
1
Summary of Key Features of the Funds…………………………………………………………………………………
1.1
General Information on Conventional Funds ………………………………………………………………………………
1.2
General Information on Shariah Funds………………………………………………………………………………………..
1.3
Fees and Charges ……………………………………………………………………...…………..…………………………………..
1.4
Other Information ……………………………………………..………………………………………………………………………
1.4.1
Information on Transactions ……………………………………………………………………………………………………….
1.4.2
Special Benefits …………………………………………………………………………………………………………………………..
1.4.3
Details of Deeds ………………………………............……………………………………………………………………………
1.4.4
Investment via EPF Members’ Investment Scheme ………………………………………………………………
4
9
12
12
25
28
32
32
34
35
36
2
2.1
2.2
Risk Factors ….……………………………………………………………………………………………………………………
Risks of Investing in Unit Trusts ………………………………………………………………………............................
Control Of Risk ……………………………………………………………………………………………………………………………
37
37
38
3
3.1
3.2
3.3
3.4
3.5
3.6
Detailed Information on the Funds ………………………………………………………………..........................
Introduction ………………………………………………………………………………………………………………………………
PNB Structured Investment Fund ……………………………………………………………………………………………….
AMB Unit Trust Fund ………………………………………………………………………………………………………………….
AMB Balanced Trust Fund …………………………………………………………………………………………………………..
AMB Income Trust Fund ……………………………………………………………………………………………………………..
AMB Index-Linked Trust Fund …………………………………………………………………………………………………….
AMB SmallCap Trust Fund …………………………………………………………………………………………………………..
AMB Enhanced Bond Trust Fund …………………………………………………………………………………………………
AMB Ethical Trust Fund ………………………………………………………………………………………………………………
AMB Value Trust Fund …………………………………………………………………………………….............................
AMB Lifestyle Trust Fund Today ………………………………………………………………………………………………….
AMB Lifestyle Trust Fund 2014 ……………………………………………………………………………………………………
AMB Dividend Trust Fund ……………………………………………………………………………………………………………
AMB Dana Yakin …………………………………………………………………………………………………………………………
AMB Dana Ikhlas …………………………………………………………………………………………………………………………
AMB Dana Arif …………………………………………………………………………………………………………………………….
Permitted Investments for Conventional Funds………………………………………………………………………..
Permitted Investments for Shariah Funds …………………………………………………………………………………
Investment Restrictions ………………………………………………………………………………………………………………
Exceptions and Exclusions Applicable to the Funds …………………………………………………………………..
Zakat for Shariah Funds (AMBDY, AMBDI & AMBDA)
39
39
39
46
49
52
55
59
62
65
71
75
78
84
88
91
95
98
100
101
103
103
4
4.1
4.2
4.3
Investment Process of the Funds …………………………………………………………………………………………….
Investment Process of the Funds ………………………………………………………………………………………………..
Bases of Valuation of Investments ………………………………………………………………………………………………
Policy on Gearing and Liquid Assets ……………………………………………………………………………………………
104
106
113
116
5
Funds’ Performance ……….…………………………………………………………………………………………………..
PNB Structured Investment Fund ……………………………………………………………………………………………….
AMB Unit Trust Fund ………………………………………………………………………………………………………………….
AMB Balanced Trust Fund …………………………………………………………………………………………………………..
AMB Income Trust Fund ……………………………………………………………………………………………………………..
AMB Index-Linked Trust Fund …………………………………………………………………………………………………….
AMB SmallCap Trust Fund …………………………………………………………………………………………………………..
AMB Enhanced Bond Trust Fund …………………………………………………………………………………………………
AMB Ethical Trust Fund ………………………………………………………………………………………………………………
117
117
118
119
120
121
122
123
124
AMB Client Services 03-2034 0800
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Master Prospectus 2010/2011
AMB Value Trust Fund …………………………………………………………………………………….............................
AMB Lifestyle Trust Fund Today ………………………………………………………………………………………………….
AMB Lifestyle Trust Fund 2014 ……………………………………………………………………………………………………
AMB Dividend Trust Fund ……………………………………………………………………………………………………………
AMB Dana Yakin …………………………………………………………………………………………………………………………
AMB Dana Ikhlas …………………………………………………………………………………………………………………………
AMB Dana Arif …………………………………………………………………………………………………………………………….
125
126
127
128
129
130
131
6
6.1
6.1.1
6.1.2
6.1.3
6.1.4
6.1.5
6.1.6
6.1.7
6.1.8
6.1.9
6.1.10
6.1.11
6.1.12
6.1.13
6.1.14
6.1.15
6.2
6.3
Historical Financial Highlights of the Funds …………………………………………………………....................
Extracts of the Financial Statements of the Funds ………………………………………………………………………
PNB Structured Investment Fund ……………………………………………………………………………………………….
AMB Unit Trust Fund ……………………………………………………………………………….....................................
AMB Balanced Trust Fund……………………………………………………………………………………………………………
AMB Income Trust Fund……………………………………………………………………………….................................
AMB Index-Linked Trust Fund……………………………………………………………………………...........................
AMB SmallCap Trust Fund……………………………………………………………………………………………………………
AMB Enhanced Bond Trust Fund………………………………………………………………………………………………….
AMB Ethical Trust Fund………………………………………………………………………………..................................
AMB Value Trust Fund………………………………………………………………………………....................................
AMB Lifestyle Trust Fund Today…………………………………………………………………………..........................
AMB Lifestyle Trust Fund 2014 ……………………………………………………………………………………………………
AMB Dividend Trust Fund ……………………………………………………………………………………………………………
AMB Dana Yakin …………………………………………………………………………………………………………………………
AMB Dana Ikhlas …………………………………………………………………………………………………………………………
AMB Dana Arif …………………………………………………………………………………………………………………………….
Total Annual Expenses incurred by the Funds in the last Financial Year ………………………………………
Management Expenses Ratio ……………………………………………………………………………………………………..
133
133
133
134
134
135
135
136
136
137
137
138
138
139
139
140
140
141
142
7
7.1
7.1.1
7.1.2
7.1.3
7.1.4
7.1.5
7.2
7.2.1
7.2.2
7.2.3
7.3
7.4
7.4.1
Fees, Charges and Expenses ……………………………………………………………………………………………….
Charges ………………………….…………………………………………………………………...........................................
Sales Charge ………………………….…………………………………………………………………....................................
Repurchase Charge………………………………………………………………………………........................................
Switching Charge……………………………………………………………………………………………………………………….
Transfer Charge...………………………………………………………………………………………………………………………
Miscellaneous
Fees …………….…………………………………………………………………………………………………………………………….
Management Fee………………………………………………………………………………………………………………………..
Trustee Fee …………………………………………………………………………………………………………………………………
Custodian Fee ….…………………………………………………………………………………….......................................
Fund’s Expenses ………………………….……………………………………………………………………...........................
Others …………………………………………………………………………………………………………................................
Policy on Brokerage Rebates and Soft Commissions ……………………………………………........................
144
144
144
145
145
146
146
146
146
147
148
148
148
148
8
8.1
8.2
8.3
8.4
8.5
8.6
8.7
8.8
8.9
8.10
8.11
8.12
Purchasing and Repurchasing of Units ……………………………………………………………………………………..
Single Pricing Policy ………………………………………………………………………………………..................................
Valuation of Units ………………………………………………………………………………………………………………………….
Error in Pricing ………………………………………………………………………………………………………………………………
Purchasing and Repurchasing of Units …………………………………………………………………..........................
Determination of Prices and Charges……………….………………………………….…………………………………………
Minimum Balance of Investment …………………………….…………………………………………............................
Cooling-Off Right ………………………………………….………………………………………………..................................
How to Purchase and Repurchase Units of the Fund………………………………...……………………...............
Where to Purchase, Repurchase, Transfer and Switch …………………………..…………………………………….
Invest your EPF Savings ………………………………………………………………………………….................................
Transfer of Units ……………………………………………………………………………………………………………………………
The Flexibility to Switch your Investment ………………………………………………………………………………………
149
149
149
149
150
150
151
152
153
153
153
153
154
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Master Prospectus 2010/2011
9
9.1
9.2
9.3
9.4
9.5
Understanding Income Distributions …………………………………….….…………………………….................
Distribution Policy …………………………………………………………………………………………...............................
What Comprises Income Distribution? ……..………………………………………………………...........................
Mode of Payment for the income distribution …..………………………………………………………………………..
Auto-Reinvestment of Distribution Cheques upon Lapse of Six Months Cheques Validity Period ..
Policy on Unclaimed Monies …………………………………………..…………………………………………………………
155
155
155
155
156
156
10
10.1
10.2
10.3
10.4
10.5
Communications with Unit Holders ……………………………………………………………………………………….
Customer Information Service ……………………………………………………………………….............................
Regular Reports on your Investment ……………………………………………………………………......................
Register of Unit Holders …………………………………………………………………………………………………………….
Policies Adopted by AMB to Avoid Money Laundering Activities ……………………………………………….
Material Contracts …………………………………………………………………………………………………………………….
157
157
157
157
158
158
11
11.1
11.2
11.3
11.3.1
11.3.2
11.4
11.5
11.6
11.7
11.8
11.8.1
11.8.2
11.8.3
11.8.4
11.8.5
11.8.6
11.9
11.10
11.11
11.12
The Management and Administration of the Funds ………………………………………………………………
Corporate Profile of the Manager ………………………………………………………………………........................
Past Performance of the Manager ………………………………..……………………………………........................
Profile of the Board of Directors of the Manager ……………..……………………………………….................
Company Secretary ……………………………………………………………………………………………………………………
Senior Compliance Officer ………………………………………………………………………………...........................
Profile of the Key Management Staff of the Manager …………………………………..…………………………
The Investment Committee of the Funds managed by the Manager .…………………………................
The Ethical Panel of Advisors …………………………………………………………………………............................
The Shariah Committee …………………………………………………………………………………………………………….
Profile of the External Investment Managers ……………………………………………………………………………
Permodalan Nasional Berhad (PNB) …………………………………………………………………….......................
Mayban Investment Management Sdn Bhd (MIM) ……………………………………………………………………
UOB-OSK Asset Management Sdn Bhd (UOB-OSKAM) ………………………………………………………………
HwangDBS Investment Management Berhad (HwangDBS IM) ………………………………………………….
CIMB-Principal Asset Management Berhad (CIMB-Principal) ………………..…………………………………
Duties of The External Investment Managers………………..…………………………………………..................
Designated Investment Managers of the Funds ………………………………………………………………………..
Management Company’s Delegates ………………………………………………………………………………………….
Declaration of Absence of Conflict of Interest involving EIMs …………………………………………………..
Material Litigation and Arbitration ……………………………………………………………………………………………
159
159
160
160
162
162
163
164
164
166
168
168
169
171
171
173
174
175
176
176
176
12
12.1
12.2
12.3
12.4
12.5
12.6
12.7
12.8
The Trustees of the Funds ……………………………………………………………………………………………………..
Profile of Universal Trustee (Malaysia) Berhad (UTMB) …………………………………………………………….
Profile of HSBC (Malaysia) Trustee Berhad (HSBC) …………………………………………………………………….
Profile of Malaysian Trustees Berhad (MTB) ……………………………………………………………………………..
Profile of AmanahRaya Trustees Berhad (ART)…………………………………………………………………………..
Duties and Obligations of Trustees ..………………………………………………………………………………………….
Retirement, Removal or Replacement of the Trustee …...……………………………………………...............
Power of the Trustee to Remove or Replace the Manager ………………………………………………………..
Statement of Disclaimer……………………………………………………………………………………………………………
177
177
178
181
183
185
186
187
187
13
14
15
16
17
18
19
Salient Terms of Deeds ………………………………………………………………………………..............................
Variations Granted by the SC ……………………………………………………………………………………………………
Related Party Transactions/Conflict of Interest ………….……………………………………………………………
Tax Advisors’ Letter .......................................................................................................................
Consents …………………………………………………………………………………………………………………………………..
Documents Available for Inspection .............................................................................................
List of Offices ……………………………………………………………………………………………………………………………
188
191
194
196
216
217
218
AMB Client Services 03-2034 0800
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Master Prospectus 2010/2011
Glossary of Terms / Abbreviations
The following words or abbreviations shall have the following meanings in the current Master Prospectus
unless otherwise stated:
“Act” or “CMSA”
The Capital Markets and Services Act, 2007 including all amendments
thereto and all regulations rules and guidelines issued in connection
therewith.
“AMB” or “Manager”
Amanah Mutual Berhad (AMB) (195414-U).
“AMB Family of Funds”
All Funds under the management of the Manager.
“ASNB”
Amanah Saham Nasional Berhad (47457-V), the holding company of the
Manager.
“PNB SIF”
“AMBUTF”
“AMBBTF”
“AMBITF”
“AMBILTF”
“AMBSCTF”
“AMBEBTF”
“AMBETF”
“AMBVTF”
“AMBLTF Today”
“AMBLTF 2014”
“AMBDTF”
“AMBDY”
“AMBDI”
“AMBDA”
PNB Structured Investment Fund
AMB Unit Trust Fund
AMB Balanced Trust Fund
AMB Income Trust Fund
AMB Index-Linked Trust Fund
AMB SmallCap Trust Fund
AMB Enhanced Bond Trust Fund
AMB Ethical Trust Fund
AMB Value Trust Fund
AMB Lifestyle Trust Fund Today
AMB Lifestyle Trust Fund 2014
AMB Dividend Trust Fund
AMB Dana Yakin
AMB Dana Ikhlas
AMB Dana Arif
“Bursa Malaysia”
Bursa Malaysia Berhad.
“Bursa Securities”
Bursa Malaysia Securities Berhad (635998-W).
“Business Day(s)”
A day on which the Bursa Securities is open for trading.
“BAFIA”
Banking and Financial Institutions Act 1989, including all amendments
thereto and all regulations, rules and guidelines issued in connection
therewith.
“Cooling-off Period”
The cooling-off period of the Funds is 6 Business Days commencing from
the date of purchase i.e. the date on which the Manager receives the
application form and the investment amount.
“Cooling-off Right”
The right of a qualified Unit Holder to change his mind and cancel an
investment in the Funds within the Cooling-off Period.
“DBMB”
Deutsche Bank (Malaysia) Berhad (312552-W).
AMB Client Services 03-2034 0800
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Master Prospectus 2010/2011
“Deeds”
The Deeds including any supplementary Deeds between the Manager,
the Trustees and the Unit Holders for PNB SIF, AMBUTF, AMBBTF,
AMBITF, AMBILTF, AMBETF, AMBVTF, AMBEBTF, AMBSCTF, AMBLTF
Today, AMBLTF 2014, AMBDTF, AMBDA, AMBDI and AMBDY.
“Distribution Branch”
Any branch, outlet or any other premises of the IUTA used as
distribution channel for the purpose of marketing and distribution of
Units.
“Eligible Market”
A market that is regulated by a regulatory authority, operates regularly,
open to the public and has adequate liquidity for the purpose of the
Funds in question.
“Ethical Panel of Advisors”
The Panel of Advisors appointed by the Manager to AMBETF.
“EPF”
Employees Provident Fund.
“External Investment Manager” or
“EIM”
Permodalan Nasional Berhad (PNB) for PNB SIF; Mayban Investment
Management Sdn Bhd (MIM) for AMBILTF, UOB-OSK Asset
Management Sdn Bhd (UOB-OSKAM) for AMBETF, AMBVTF, AMBLTF
Today, AMBLTF 2014, AMBUTF, AMBSCTF and AMBDY; HwangDBS
Investment Management Bhd (HwangDBS IM) for AMBDTF and CIMBPrincipal Asset Management Berhad (CIMB-Principal) for AMBBTF,
AMBITF, AMBEBTF, AMBDI and AMBDA.
“FBM Top 100 Index”
FTSE Bursa Malaysia Top 100 Index.
“FBM KLCI”
FTSE Bursa Malaysia KLCI.
“FIMM”
Federation of Investment Managers Malaysia.
“Forward Pricing”
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.
“FBM Emas Index”
FTSE Bursa Malaysia EMAS Index.
“FBM Emas Shariah Index”
FTSE Bursa Malaysia EMAS Shariah Index.
“FBM SmallCap Index”
FTSE Bursa Malaysia SmallCap Index.
“Fund”
Any of the Funds under the management of the Manager.
“Funds”
PNB SIF, AMBUTF, AMBBTF, AMBITF, AMBILTF, AMBETF, AMBVTF,
AMBEBTF, AMBSCTF, AMBLTF Today, AMBLTF 2014, AMBDTF, AMBDY,
AMBDI, and AMBDA.
“GIA”
General Investment Account
“Guidelines”
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.
“Investment Committee”
The Investment Committee of the Manager primarily responsible for
formulating, implementing and monitoring the investment
management strategies of the Funds in accordance with the respective
investment objectives of the Funds.
AMB Client Services 03-2034 0800
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Master Prospectus 2010/2011
“Investment Management Agreement”
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 Fund.
“IUTA” or “Distributor”
Any Institutional Unit Trust Advisers, which is an institution, a
corporation or an organisation that is registered with FIMM in
accordance with their guidelines to distribute the Units.
Kuala Lumpur Inter-Bank Offered Rates.
“KLIBOR”
“LPD”
July 31, 2010, being the latest practicable date for the purposes of
ascertaining the information contained in this Master Prospectus.
“MARC”
Malaysian Rating Corporation Berhad (364803-V).
“Management Expense Ratio” or “MER”
The ratio of the sum of the fees and the recovered expenses of the
Fund to the average value of the Fund calculated on a daily basis, i.e.:
Fees of the Fund + recovered expenses of the Fund
x 100
Average value of the Fund calculated on a daily basis
Where:
Fees
= All ongoing fees deducted/deductible directly from the
Fund in respect of the period covered by the
management expense ratio expressed, as a fixed
amount calculated on a daily basis. This would include
the annual management fee, the annual trustee fee
and any other fees deducted/deductible directly from
the Fund;
Recovered =
Expenses
Average
Value of
The Fund
All expenses recovered from /charged to the Fund as a
result of the expenses incurred by the operation of the
Fund, expressed as a fixed amount. This should not
include expenses that would otherwise be incurred by
an individual investor (e.g. brokerage, taxes and
levies);and
= The NAV of the Fund, including Funds' net income
value less expenses on an accrued basis, in respect of
the period covered by the management expense ratio,
calculated on a daily basis.
“Maturity Date”
The respective Maturity Date of the Funds (where applicable) as stated
in the Deeds .
“Maybank”
Malayan Banking Berhad (3813-K).
“MGS”
Malaysia Government Securities.
“Net Asset Value (NAV) of the Fund”
The value of the Funds’ assets less the value of all the Fund’s liabilities
at the valuation point. For the purpose of computing the annual
management fee and annual trustee fee, the NAV of the Fund should
be inclusive of the management fee and trustee fee for the relevant
day.
AMB Client Services 03-2034 0800
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Master Prospectus 2010/2011
“Net Asset Value (NAV) per Unit”
The NAV of the Fund divided by the number of Units in Circulation, at
the valuation point.
“PHNB”
Pelaburan Hartanah Nasional Berhad (175967-W), being the manager
of PNB REIT.
“PNB”
Permodalan Nasional Berhad (38218-X), the ultimate holding company
of the Manager.
“PNB REIT”
PNB Real Estate Investment Trust, a private and unlisted REIT.
“Portfolio Turnover Ratio” or “PTR”
The ratio of the average sum of the acquisitions and disposals of the
Fund for the year to the average value of the Fund for the year
calculated on a daily basis, i.e.:
[Total acquisitions of the Fund for the year +
Total disposals of the Fund for the year] / 2
Average value of the Fund for the year calculated on a daily basis
“Purchasing Price of Units”
The buying of Units by Unit Holders in a Fund is calculated at NAV per
Unit.
“Quantshop MGS Index”
Quantshop MGS Bond Index (Medium 3-7).
“RAM”
RAM Holdings Berhad (208095-U).
“Repurchasing Price of Units”
The repurchasing of Units by Unit Holders in a Fund is calculated at
NAV per Unit.
“REIT”
Real Estate Investment Trust.
“REITs Guidelines”
The Guidelines on Real Estate Investment Trusts issued by the SC as
may be amended from time to time.
“RM”
Ringgit Malaysia.
“SC”
Securities Commission of Malaysia.
“Shariah Committee Members”
The Committee appointed by the Manager to AMBDY, AMBDI and
AMBDA.
“Shariah Principles”
Shariah principles are based on Islamic law, originating from the Quran
as well as practices and explanations rendered by the Prophet
Muhammad (PBUH), Ijma’, Qiyas and Ijtihad of ulama’ (personal
reasoning of Islamic jurists).
“Structured Products”
Structured products which have been issued in accordance with such
relevant regulatory requirements as may be imposed by the SC and
Bank Negara Malaysia.
“Trustees”
Universal Trustee (Malaysia) Berhad (UTMB) (17540-D) as trustee for
AMBUTF, AMBBTF and AMBITF;
HSBC (Malaysia) Trustee Berhad (HSBC) (001281-T) as trustee for
AMBILTF, AMBETF, AMBVTF, AMBLTF Today, AMBLTF 2014 and
AMBDTF;
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Master Prospectus 2010/2011
Malaysian Trustees Berhad (MTB) (21666-V) as trustee for AMBSCTF
and AMBEBTF; and
AmanahRaya Trustees Berhad (ART) (766894-T) as trustee for PNB SIF,
AMBDY, AMBDI and AMBDA.
“Trustee"
Any of the Trustees.
“Unit Holder(s)”
A person or persons registered as holder(s) of a Unit or Units of the
Funds and whose name(s) appear(s) in the Register of Unit Holders.
“Units”
Units of any Fund.
“Units in Circulation” or “UIC”
Units of the Fund created and fully paid.
“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 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
Securities. For Funds with foreign investments, the valuation of the
Funds will be conducted after the close of business of Bursa Securities
for the relevant day, as certain of the 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 Securities but not later than 9.00 am (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.
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.
AMB Client Services 03-2034 0800
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Master Prospectus 2010/2011
Corporate Information
MANAGER
Amanah Mutual Berhad (195414-U)
Registered Office Address
4th Floor, Balai PNB
201-A, Jalan Tun Razak
50400 Kuala Lumpur
Telephone : 03-2050 5100
Facsimile : 03-2163 3477
Business Office Address
34th Floor, Menara PNB
201-A, Jalan Tun Razak
50400 Kuala Lumpur
Telephone
: 03-2034 0800
Facsimile
: 03-2162 5958 / 2163 3212
AMB Client Services : 03-2034 0800
Email
: [email protected]
Website
: www.ambmutual.com.my
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 Idris bin Kechot
(Non-Executive/Non-Independent Director)
ETHICAL PANEL OF ADVISORS (for AMBETF)
• Dato' Seri Haji Arshad bin Haji Hashim
Chairman (Independent member)
• Dato’ Noor Farida binti Mohd Ariffin
(Independent member)
• Datuk Ibrahim bin Muhammad
(Independent member)
SHARIAH COMMITTEE MEMBERS (for AMBDA,
AMBDI and AMBDY)
• Dato’ Dr. Abdul Halim bin Ismail
Chairman (Independent member)
• Datuk Dr. Syed Othman bin Syed Hussin Al
Habshi
(Independent member)
• Prof. Dato’ Dr. Abdul Monir bin Yaacob
(Independent member)
• Prof. Dato’ Dr. Mahmood Zuhdi bin Hj Ab Majid
(Independent member)
AUDIT COMMITTEE OF PNB
• Tan Sri Dato' Dr. Wan Mohd. Zahid bin Mohd.
Noordin
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 OF PNB
INVESTMENT COMMITTEE MEMBERS
• Tun Ahmad Sarji bin Abdul Hamid
Chairman (Non-Independent member)
• Tan Sri Dato' Sri Hamad Kama Piah bin Che
Othman
(Non-Independent member)
• Tan Sri Dato' Dr. Wan Mohd. Zahid bin Mohd.
Noordin
Chairman
(Independent member)
• Tan Sri Dato' Sri Hamad Kama Piah bin Che
Othman (Non-Independent member)
• Tan Sri Dato' Dr. Wan Mohd. Zahid bin Mohd.
Noordin (Independent member)
• Tan Sri Dato' Md. Desa bin Pachi
(Independent member)
• Tan Sri Dato' Md. Desa bin Pachi
(Independent member)
• Encik Paisol bin Ahmad
(Non-Independent member)
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Master Prospectus 2010/2011
COMPANY SECRETARY
Puan Adibah Khairiah binti Ismail @ Daud
(MIA 13755)
4th Floor, Balai PNB
201-A, Jalan Tun Razak
50400 Kuala Lumpur
TRUSTEES
AmanahRaya Trustees Berhad (766894-T)
(for PNB SIF, AMBDA, AMBDI and AMBDY)
Registered Office:
Tingkat 11, Wisma AmanahRaya
No. 2, Jalan Ampang
50508 Kuala Lumpur
Telephone: (603) 2055 7388
Website: www.amanahraya.com.my
Business Office:
Tingkat 2, Wisma TAS
No. 21, Jalan Melaka
50100, Kuala Lumpur
Telephone : (603)2036 5000
Facsimile : (603)2072 0322
Website
: www.amanahraya.com.my
AmanahRaya Trustees Berhad’s Delegate (AMBDA)
Malayan Banking Berhad (Custody & Services Dept)
3rd Floor, Menara Maybank
100 Jalan Tun Perak
50050 Kuala Lumpur
Telephone : 03-2074 7111
Facsimile : 03-2032 1572/ 2070 0966
Universal Trustee (Malaysia) Berhad
(17540-D) (for AMBUTF, AMBBTF and AMBITF)
Registered and Business Office:
No. 1, 3rd Floor
Jalan Ampang, 50450 Kuala Lumpur
Telephone: 03-2070 8050
Facsimile : 03-2031 8715/ 2032 3194
Email Address: [email protected]
Website : www.universaltrustee.com.my
HSBC (Malaysia) Trustee Berhad (001281-T)
(for AMBILTF, AMBETF, AMBVTF, AMBLTF Today,
AMBLTF 2014 and AMBDTF)
Registered and Business Office :
th
Suite 901, 9 Floor, Wisma Hamzah-Kwong Hing,
No 1, Leboh Ampang,
50100 Kuala Lumpur.
Telephone : 03-2074 3200 (General Line)
Facsimile : 03-2078 0145
HSBC (Malaysia) Trustee Berhad’s Delegate
The Hongkong and Shanghai Banking Corporation Limited
(as custodian ) and assets held through :
HSBC Nominees (Tempatan) Sdn Bhd (258854-D)
No 2 Leboh Ampang
50100 Kuala Lumpur.
Telephone : (603) 2070 0744
Facsimile : (603) 2072 9787
HSBC Institutional Trust Services (Asia) Limited
6th Floor, Tower One
HSBC Centre
No 1 Sham Mong Road
Kowloon, Hong Kong
Telephone : (852)25336333
Facsimile : (852)28696120
Malaysian Trustees Berhad (21666-V) (for AMBSCTF and
AMBEBTF)
Registered and Business Office:
Level 2, Menara Prudential
No.10, Jalan Sultan Ismail
50250 Kuala Lumpur
Telephone: 03-2176 1066
Facsimile : 03-2032 1222
Email : [email protected]
Malaysian Trustees Berhad’s Delegate
Mayban Custody & Services
3rd Floor Menara Maybank
100 Jalan Tun Perak
50050 Kuala Lumpur
Telephone: 03-2074 7111
Facsimile : 03-2032 1572
EXTERNAL INVESTMENT MANAGERS
Permodalan Nasional Berhad (38218-X) (for PNB SIF)
4th Floor, Balai PNB
201-A, Jalan Tun Razak
50400 Kuala Lumpur
Telephone : 03-2050 5100
Website : www.pnb.com.my
Mayban Investment Management Sdn Bhd
(421779-M) (for AMBILTF)
Business Office Address :
Level 13, Tower C,
MaybanLife Tower
Dataran Maybank
No.1, Jalan Maarof
59000 Kuala Lumpur
Telephone : 03-2297 7888
Facsimile : 03-2297 7880
AMB Client Services 03-2034 0800
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Master Prospectus 2010/2011
UOB-OSK Asset Management Sdn Bhd
(219478-X) (for AMBETF, AMBVTF, AMBLTF Today,
AMBLTF 2014, AMBSCTF, AMBUTF and AMBDY)
Level 13, Menara UOB
Jalan Raja Laut
50350 Kuala Lumpur
Telephone: 03-2732 1181
Facsimile : 03-2732 1100
Ernst & Young Tax Consultants Sdn Bhd
(AMBILTF, AMBETF, AMBVTF, AMBEBTF, AMBSCTF,
AMBLTF TODAY, AMBLTF 2014, AMBDTF, PNB SIF,
AMBDA and AMBDI)
Level 23A Menara Milenium
Jalan Damanlela, Pusat Bandar Damansara,
50490 Kuala Lumpur
HwangDBS Investment Management Berhad
(429786-T) (for AMBDTF)
Suite 12-03, 12th Floor, Menara Keck Seng
203, Jalan Bukit Bintang
55100 Kuala Lumpur
Telephone : 03-2142 1881
Facsimile : 03-2141 1886 / 03-2143 1881
Toll free line : 1-800-88-7080
Email
: [email protected]
Website
: www.hdbsim.com.my
PRINCIPAL BANKER
CIMB-Principal Asset Management Berhad
(304078-K) (for AMBBTF, AMBITF, AMBEBTF, AMBDI
and AMBDA)
Level 5, Menara Milenium
8, Jalan Damanlela
Bukit Damansara
50490 Kuala Lumpur
Telephone : 03-2084 2000
Facsimile : 03-2084 2031
Website
: www.cimb-principal.com.my
AUDITORS
Messrs. Ernst & Young
Chartered Accountants
Level 23A Menara Milenium, Jalan Damanlela
Pusat Bandar Damansara, 50490 Kuala Lumpur.
TAX ADVISORS
Malayan Banking Berhad (3813-K)
Kuala Lumpur Main Office,
100 Jalan Tun Perak, 50050 Kuala Lumpur.
SOLICITORS
Messrs. Othman Hashim & Co (for AMBDY and AMBDA)
Suite 18.04
Menara MAA
No. 12, Jalan Dewan Bahasa
50460 Kuala Lumpur
Messrs. Zainal Abidin & Co. (for all Funds)
Suite 1803 – 1806,
18th Floor, Plaza Permata,
Jalan Kampar Off Jalan Tun Razak
50400 Kuala Lumpur.
FEDERATION OF INVESTMENT MANAGERS MALAYSIA
(FIMM)
19-07-3, 7th Floor, PNB Damansara,
19, Lorong Dungun, Damansara Heights,
50490 Kuala Lumpur.
Telephone: 03-2093 2600
Facsimile : 03-2093 2700
Website : www.fimm.com.my
PricewaterhouseCoopers Taxation Services Sdn Bhd
(AMBUTF, AMBITF, AMBBTF and AMBDY)
Level 10, 1 Sentral, Jalan Travers, Kuala Lumpur
Sentral
P.O. Box 10192, 50706 Kuala Lumpur.
AMB Client Services 03-2034 0800
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Master Prospectus 2010/2011
1 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.
1.1 General Information on Conventional Funds
Further details
on page :
PNB Structured Investment Fund
Fund Category / Type
Objective of the
Fund
Mixed Assets / Income and Growth Fund
The Fund seeks to provide investment opportunities that generate reasonable
returns and growth over the tenure of the Fund while endeavouring to provide
capital protection to Unit Holders.
Investment Strategy
To achieve this objective, the Fund will be investing in RM-denominated
Structured Products, PNB REIT, listed & unlisted securities, fixed income
securities, any other investments permitted by the Deed in Malaysia or any other
eligible market and cash equivalent instruments to meet its liquidity
requirements. The Structured Products are principal protected upon maturity.
39
39
The Fund will be investing in Units of PNB REIT which offer potential regular
income and upside potential through exposure in properties. PNB REIT has
principal protection features whereby its properties have a buy-back option from
the respective vendors to repurchase the properties at the highest price offered
by third party purchasers or the original purchase price plus capital expenditure
on the respective property, whichever is the higher, and subject to the REITs
Guidelines.
Asset Allocation
Up to 80% in Structured Products
Up to 50% in PNB REIT
Up to 80% in any other investments permitted by the Deed which include a
diversified portfolio of listed securities, primarily on the Bursa Malaysia,
unlisted securities and fixed income securities; and
Min 2% in cash and money market instruments for liquidity purposes
40, 117
Benchmark
12-month Maybank fixed deposit rate.
41, 117
Principal risks of
investing in the Fund
The potential risks associated with securities and instruments invested by PNB
SIF are counterparty risk, market risk, structured product risk, currency risk,
liquidity risk, early repurchase risk, individual asset risk/specific risk, legal risk,
prepayment/commitment risk, funding risk and operational risk.
External Investment
Manager
Permodalan Nasional Berhad (38218-X)
Trustee
AmanahRaya Trustees Berhad (766894-T)
Investor Profile
42
The Fund is suitable for investors with the following profile:Seek capital protection
Wish to participate in the potential upside of global equities, interest rates,
indices or any other underlying(s) as may be permitted under the Deed.
Have low risk tolerance and a medium-term investment horizon.
Distribution Policy
Income (if any) is expected to be distributed at the Manager’s discretion, subject
to the approval from the Trustee.
Launch Date
May 12, 2008
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Maturity Date
Financial Year End
Tenure
UIC as at LPD
Approved Fund Size
July 5, 2013
July 31
5 Years
2.44 billion Units
3 billion Units
Note : During the tenure of PNB SIF, only Units repurchased by the Manager may be resold based on the NAV per unit at
that point of time.
Further details
on page :
AMB Unit Trust Fund
Fund Category / Type
Equity Fund / Growth Fund
Objective of the Fund
To achieve a steady long-term income (over 5 year) and capital
growth through a diversified portfolio of equity investments in
larger capitalized stocks (prime focus on Main Market and liquid
stocks).
46
Investment Strategy
The Fund invests primarily in blue chip and high growth stocks that
can increase the potential for better long-term returns.
48
Asset Allocation
• Min 40% Max 90% in equities
• Min 10% in liquid asset
48, 118
Benchmark
• 90% of the performance of the FBM KLCI.
• 10% of the 1-month fixed deposit rate of commercial banks.
48, 118
Principal risks of investing
in the Fund
The principal risks of investing in the Fund are as market risk,
individual stock risk, liquidity risk and operational risk.
External Investment Manager
UOB-OSK Asset Management Sdn Bhd (UOB-OSK) (219478-X)
Trustee
Universal Trustee (Malaysia) Berhad (17540-D)
Investor Profile
The Fund is suitable for all investors whose primary interest is in
investments for the long term and capital growth of their
investment. It is for those who are seeking investment in larger
blue chips and growth stocks.
Distribution Policy
Income (if any) is expected to be distributed annually at the
Manager’s discretion, subject to the approval from the Trustee.
Launch Date
March 26, 1992
Financial Year End
June 30
UIC as at LPD
212.81 million Units
Approved Fund Size
1.5 billion Units
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Further details
on page :
AMB Balanced Trust Fund
Fund Category / Type
Balanced Fund / Growth and Income Fund
Objective of the Fund
To provide a balance between income and long-term (over 5
years) capital appreciation.
49
Investment Strategy
The Fund invests in a wide variety of assets, balancing its
investment across potentially high yielding share investments
aiming to increase long term returns.
51
Asset Allocation
• Min 20% Max 60% in equities
• Min 20% Max 60% in fixed income securities
• Min 2% in liquid assets
51, 119
Benchmark
• 50% of the performance of the FBM KLCI.
• 50% Quantshop MGS Medium Index.
51, 119
Principal risks of investing
in the Fund
The principal risks of investing in the Fund are as market risk,
individual stock risk, credit/ default risk, interest rate risk, liquidity
risk and operational risk.
External Investment Manager
CIMB-Principal Asset Management Berhad (304078-K)
Trustee
Universal Trustee (Malaysia) Berhad (17540-D)
Investor Profile
The Fund is suitable for all investors who are seeking a fully
managed and balanced portfolio of investments and who have a
long-term investment horizon of 5 years or more.
Distribution Policy
Income (if any) is expected to be distributed annually at the
Manager’s discretion, subject to the approval from the Trustee.
Launch Date
September 19, 1994
Financial Year End
September 30
UIC as at LPD
172.41 million Units
Approved Fund Size
1.15 billion Units
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Master Prospectus 2010/2011
Further details
on page :
AMB Income Trust Fund
Fund Category / Type
Bond Fund / Income Fund
Objective of the Fund
To maximise returns over the medium term (over 2 years) and while
at the same time offer stability of capital and regular income.
52
Investment Strategy
The Fund’s investment strategy is to create a prudent mix in its
portfolio to comply with its investment objective and to provide
professional assessment of investment prospects by its External
Investment Manager in line with the economic outlook.
54
Asset Allocation
• Min 40% Max 98% in fixed income securities
• Max 60% in cash and money market
54, 120
Benchmark
12-month fixed deposit rate of commercial banks.
54, 120
Principal risks of investing
in the Fund
The principal risks of investing in the Fund are market risk, credit /
default risk, interest rate risk, liquidity risk and operational risk.
External Investment Manager
CIMB-Principal Asset Management Berhad (304078-K)
Trustee
Universal Trustee (Malaysia) Berhad (17540-D)
Investor Profile
The Fund is suitable for investors seeking a medium term investment
with regular consistent income and some potential for moderate
capital growth.
Distribution Policy
Income (if any) is expected to be distributed annually at the
Manager’s discretion, subject to the approval from the Trustee.
Launch Date
June 19, 1996
Financial Year End
June 30
UIC as at LPD
115.49 million Units
Approved Fund Size
600 million Units
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Master Prospectus 2010/2011
Further details
on page :
AMB Index-Linked Trust Fund
Fund Category / Type
Equity Fund / Index Fund
Objective of the Fund
To achieve an investment result that tracks the performance of the
benchmark FBM KLCI.
55
Investment Strategy
The Fund’s policy is to remain fully invested at all times to minimize
the tracking error.
56
Asset Allocation
• Min 90.0% Max 99.5% in equities
• Min 0.5% Max 10.0% in liquid assets
58, 121
Benchmark
FBM KLCI
58, 121
Principal risks of investing
in the Fund
The principal risks of investing in the Fund are market risk, individual
stock risk, liquidity risk and operational risk.
External Investment Manager
Mayban Investment Management Sdn Bhd (421779-M)
Trustee
HSBC (Malaysia) Trustee Berhad (001281-T)
Investor Profile
The Fund is suitable for investors who: • Desire returns that are consistent with the performance of the
FBM KLCI.
• Have a medium to high-risk tolerance
Distribution Policy
It is not the main objective of the Fund to distribute income as the
main focus of the Fund is to secure capital growth in line with the
performance of the FBM KLCI. Income (if any) is expected to be
distributed at the Manager’s discretion, subject to the approval
from the Trustee.
Launch Date
May 16, 2002
Financial Year End
October 31
UIC as at LPD
21.35 million Units
Approved Fund Size
400 million Units
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Further details
on page :
AMB SmallCap Trust Fund
Fund Category / Type
Equity Fund / Growth Fund
Objective of the Fund
To achieve medium to long-term capital growth by primarily
investing into securities of small and medium sized companies, listed
on the Bursa Securities’s Main Market, ACE Market and/or any other
boards approved by the SC with market capitalisation of not more
than RM750 million which have the potential for capital appreciation
over the medium to long term (2 to 5 years).
59
Investment Strategy
The Fund invests primarily in selected small and medium sized
companies listed on the Main Market and ACE Market of the Bursa
Securites with market capitalization of not more than RM750 million
which have the potential for capital appreciation over the medium
to long term. Criteria for selection include companies that operate in
the high growth sector, which are expected to register high earnings
per share growth and have sound management.
61
Asset Allocation
Min 40% Max 95% in stocks and shares of small and medium cap
companies.
Min 5% Max 60% in liquid assets and short-term money market
investments.
61, 122
Benchmark
60% of the performance of the FBM SmallCap Index.
35% of the performance of the FBM Top 100 Index.
5% of the 1-month fixed deposit rate of commercial banks.
61, 122
Principal risks of investing
in the Fund
The principal risks of investing in the Fund are market risk, individual
stock risk, liquidity risk and operational risk.
External Investment Manager
UOB-OSK Asset Management Sdn Bhd (219478-X)
Trustee
Malaysian Trustees Berhad (21666-V)
Investor Profile
The Fund is suitable for investors who:
are seeking medium to long term capital growth through
investment in small to medium sized companies.
are willing to accept higher level of risk in order to obtain higher
growth of their capital.
Have a medium to long term investment horizon.
Distribution Policy
It is not the main objective of the Fund to distribute income as the
main focus of the Fund is to secure capital growth in line with the
performance of the Fund’s benchmark. Income (if any) is expected
to be distributed at the Manager’s discretion, subject to the
approval from the Trustee.
Launch Date
March 3, 2004
Financial Year End
July 31
UIC as at LPD
269.38 million Units
Approved Fund Size
600 million Units
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Master Prospectus 2010/2011
AMB Enhanced Bond Trust Fund
Further details
on page :
Fund Category / Type
Bond Fund / Income and Growth Fund
Objective of the Fund
The objective of the Fund is to provide investors with a stable
income stream and an opportunity for capital appreciation over the
medium to long term horizon through investments in securities
issued by corporations, governmental and/or statutory bodies as
provided in the Prospectus.
62
Investment Strategy
The Fund seeks to achieve its objective through a policy of
diversified investment in convertible debt securities, redeemable
debt securities, government backed bonds/ securities, rated private
debt securities, money market instruments and equities.
64
Asset Allocation
Min 85% in fixed income securities and money market
Max 15% in equities
Benchmark
100% Quantshop MGS Medium Index.
Principal risks of investing
in the Fund
The principal risks of investing in the Fund are market risk, individual
stock risk, credit/default risk, interest rate risk, liquidity risk and
operational risk.
External Investment Manager
CIMB-Principal Asset Management Berhad (304078-K)
Trustee
Malaysian Trustees Berhad (21666-V)
Investor Profile
The Fund is suitable for investors who:
Prefer a conservative investment approach but are willing to
exploit opportunities presented in the capital markets.
Possess an investment horizon in excess of 5 years .
Distribution Policy
Income (if any) is expected to be distributed annually at the
Manager’s discretion, subject to the approval from the Trustee.
Launch Date
May 27, 2003
Financial Year End
March 31
UIC as at LPD
58.52 million Units
Approved Fund Size
500 million Units
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64, 123
64, 123
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Master Prospectus 2010/2011
Further details
on page :
AMB Ethical Trust Fund
Fund Category / Type
Equity Fund / Income and Capital Growth Fund
Objective of the Fund
To provide investors with income and capital growth for medium to
long term through investments that comply with ethical principles as
defined in the Fund.
65
Investment Strategy
The Fund seeks to maximize total returns by providing investors with
capital appreciation, while reducing risk through diversified
investments mainly in equities listed in the Bursa Securities that
comply with ethical principles.
69
Asset Allocation
• Min 50% in equities and/ or bonds
• Max 98% in equities and/ or bonds
• Min 2% Max 10% in short term money market instruments.
70, 124
Benchmark
80% FBM EMAS Shariah Index + 20% KL Finance Index.
70, 124
Principal risks of investing
in the Fund
The principal risks of investing in the Fund are market risk,
individual stock risk, credit/ default risk, interest rate risk, liquidity
risk and operational risk.
External Investment Manager
UOB-OSK Asset Management Sdn Bhd (219478-X)
Trustee
HSBC (Malaysia) Trustee Berhad (001281-T)
Investor Profile
The Fund is suitable for investors who:
Desire income and capital returns from the equity and bond
markets.
Would like to channel their resources to companies that
demonstrate socially responsible practices relating to the
environment and community.
Distribution Policy
Income (if any) is expected to be distributed annually at the
Manager’s discretion, subject to the approval from the Trustee.
Launch Date
January 7, 2003
Financial Year End
August 31
UIC as at LPD
22.89 million Units
Approved Fund Size
300 million Units
Ethical Panel of Advisors
•
•
•
66
155
Dato' Seri Haji Arshad bin Haji Hashim
- Chairman (Independent member)
Dato’ Noor Farida binti Mohd Ariffin (Independent member)
Datuk Ibrahim bin Muhammad (Independent member)
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Master Prospectus 2010/2011
Further details
on page :
AMB Value Trust Fund
Fund Category / Type
Equity Fund / Capital Growth Fund
Objective of the Fund
To provide investors with capital growth through investments into
securities that are trading at a discount to their intrinsic values,
while minimising the risk in the medium to long term.
71
Investment Strategy
The Fund seeks to maximize total returns by providing investors with
capital appreciation while reducing risk through diversified
investments, mainly in equities listed in the Bursa Securities.
74
Asset Allocation
• Min 50% in equities and/or bonds
• Max 98% in equities and/or debt instruments.
• Min2% Max 10% in cash/money market instruments
74, 125
Benchmark
FBM KLCI
74, 125
Principal risks of investing
in the Fund
The principal risks of investing in the Fund are market risk, individual
stock risk, credit/default risk, interest rate risk, liquidity risk and
operational risk.
External Investment Manager
UOB-OSK Asset Management Sdn Bhd (219478-X)
Trustee
HSBC (Malaysia) Trustee Berhad (001281-T)
Investor Profile
The Fund is suitable for investors who:
are willing to accept risks for returns presented by the equity and
bond markets.
want to capitalize on the value investment approach when
investing in equity and bond markets.
Possess a long term investment horizon in excess of 5 years.
Distribution Policy
It is not the main objective of the Fund to distribute income as the
main focus of the Fund is to secure capital growth in line of the
performance of the Fund’s benchmark. Any income declared (if any)
is at the Manager’s discretion, subject to the approval from the
Trustee.
Launch Date
January 7, 2003
Financial Year End
August 31
UIC as at LPD
22.92 million Units
Approved Fund Size
300 million Units
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Further details
on page :
AMB Lifestyle Trust Fund Today
Fund Category / Type
Fixed Income Fund / Income Fund
Objective of the Fund
To seek regular income stream and moderate capital growth
through investments into fixed income securities and dividend
yielding equities.
Investment Strategy
75
To achieve its investment objective of a regular income stream, the
Fund will allocate at least 80% of its assets into the Malaysian fixed
income markets with the balance in dividend yielding equities to
enhance the returns for the portfolio. To reduce the volatility of our
equity investments, we may diversify by investing in both the local
and Asian markets. The equity portion can and will be reduced to
zero point in times of market uncertainties. Futures may also be
employed from time to time to hedge the portfolio.
77
In formulating the investment strategy, the Managers will consider
the following to determine the portion of investment to be in
foreign markets (within permitted amounts):
(a) Comparison of economic outlook of Asian economies against
the Malaysian economy to determine the growth prospects and
economic cycles.
(b) Assess country, political and social risks.
(c) Determine liquidity flows in all the Asian countries.
(d) Identify risks or attractions specific to countries/region.
(e) Assess currency risks.
Asset Allocation
Max 20% in equities
Min 80% Max 100% in bonds and money market/cash.
77, 126
Benchmark
80% of the Quantshop MGS Index
20% of the performance of the FBM Emas Index.
77, 126
Principal risks of investing
in the Fund
The principal risks of investing are market risk, individual stock risk,
credit/default risk, interest rate risk, liquidity risk, operational risks,
currency risk and country risk.
External Investment Manager
UOB-OSK Asset Management Sdn Bhd (219478-X)
Trustee
HSBC (Malaysia) Trustee Berhad (001281-T)
Investor Profile
The Fund is suitable for investors who:• Seek a defensive investment solution that comprises fixed income
instruments and a minor portion of equity.
• Seek returns that is well diversified across various asset classes.
Distribution Policy
Income (if any) is expected to be distributed annually at the
Manager’s discretion, subject to the approval from the Trustee.
Launch Date
November 25, 2004
Financial Year End
September 30
UIC as at LPD
14.17 million Units
Approved Fund Size
250 million Units
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Further
Details on
page :
AMB Lifestyle Trust Fund 2014
Fund Category/
Type
Balanced Fund / Growth Fund
Objective of the
Fund
To provide capital growth for investors through a well-diversified balanced portfolio
that is specially catered for a 10 years investment period. Over its investment period,
the Fund shall progressively adopt more defensive investment strategies as the Fund
approaches closer to maturity.
Investment
Strategy
To achieve its investment objectives, the Fund will invest in Malaysian equities and
fixed income securities where appropriate. Foreign equities may be included to
further diversify the Fund. In formulating the investment strategy, the Manager will
consider the following to determine the portion of asset class to be in foreign
investments (within permitted amounts):(a) Comparison of economic outlook of Asian economies against the Malaysian
economy to determine the growth prospects and economic cycles for each
country.
(b) Assess country, political, currency and social risks.
(c) Determine liquidity flows in all the Asian countries.
(d) Identify risks or attractions specific to countries/region.
Asset Allocation
Benchmark
TAA 1 41% - 46% in equities
54% - 59% in bonds and
money market
TAA 2 35% - 40% in equities
60% - 65% in bonds and
money market
TAA 1 46% of the performance of
the FBM Emas Index.
54% of the Quantshop
MGS Index
TAA 2 40% of the performance of
the FBM Emas Index.
60% of the Quantshop
MGS Index
78
80
82, 127
TAA 3 29% - 34% in equities
66% - 71% in bonds and money
market
TAA 4 22% - 27% in equities
73% - 78% in bonds and money
market
TAA 3 34% of the performance of the
FBM Emas Index.
66% of the Quantshop MGS Index
83, 127
TAA 4 27% of the performance of the
FBM Emas Index.
73% of the Quantshop MGS Index
Principal risks of
investing in the
Fund
The principal risks of investing are market risk, individual stock risk, credit/default risk,
interest rate risk, liquidity risk, operational risks, currency risk and country risk.
External
Investment
Manager
UOB-OSK Asset Management Sdn Bhd (219478-X)
Trustee
HSBC (Malaysia) Trustee Berhad (001281-T)
Investor Profile
The Fund is suitable for investors who: • Seek an investment solution for a period of 10 years from the commencement date
of the Fund.
• Seek returns that is well diversified across various asset classes and that would
automatically become more defensive over time.
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79
Master Prospectus 2010/2011
Distribution Policy Income (if any) is expected to be distributed at the Manager’s discretion, subject to
the approval from the Trustee.
Launch Date
November 25, 2004
Financial Year End September 30
Tenure
10 years
Maturity Date
December 22, 2014
UIC at LPD
4.51 million Units
Approved Fund
Size
250 million Units
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155
Master Prospectus 2010/2011
Further details
on page :
AMB Dividend Trust Fund
Fund Category / Type
Equity Fund / Income and Growth Fund
Objective of the Fund
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).
84
Investment Strategy
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 EIM internal screening
process whereby emphasis will be placed on sustainability of
dividends, price-to-earnings ratios, gearing levels, historical volatility
as well as liquidity.
86
Where in the opinion of the EIM a defensive strategy is appropriate,
up to 30% of the Fund may be invested in Malaysian fixed income
instruments. For fixed income securities, the Fund will mainly invest
in fixed income securities carrying a minimum credit rating of
AA3/P1 (RAM or equivalent) to provide investors with a regular
stream of income, while minimizing principal volatility. The Fund’s
equities investment will range from a minimum of 70% to a
maximum of 99.8%. Up to 30% of the Fund may be invested in
Malaysian fixed income securities should a defensive strategy be
appropriate.
Asset Allocation
Min 70% Max 99.80% in equities
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.
87, 128
Benchmark
70% of FBM KLCI + 30% of 12-month fixed deposit rate of
commercial banks.
87, 128
Principal risks of investing
in the Fund
The principal risks of investing are market risk, individual stock risk,
credit/default risk, interest rate risk, liquidity risk, operational risks,
currency risk and country risk.
85
External Investment Manager
HwangDBS Investment Management Berhad (429786-T)
Trustee
HSBC (Malaysia) Trustee Berhad (001281-T)
Investor Profile
The Fund is suitable for investors with the following profile:Conservative and prefers receiving regular and steady income in
the form of distributions.
Moderate risk appetite.
Distribution Policy
Income (if any), shall be distributed semiannually or annually at the
discretion of the Manager, subject to the approval from the Trustee.
Launch Date
June 6, 2006
Financial Year End
April 30
UIC as at LPD
49.05 million Units
Approved Fund Size
800 million Units
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Master Prospectus 2010/2011
1.2 General Information on Shariah Funds
Further details
on page :
AMB Dana Yakin
Fund Category / Type
Equity Fund / Growth Fund
Objective of the Fund
To achieve a steady capital growth over the medium to long term
period (2 years to 5 years) through investments permissible under
the Shariah Principles.
88
Investment Strategy
The Fund investment strategy is to enhance the value of the Fund
through diversification of stocks that complies with Shariah
Principles within the permitted investment parameters.
90
Asset Allocation
• Min 40% to Max 90% in equities
• Min 10% in liquid assets
90, 129
Benchmark
• 90% of the FBM EMAS Shariah Index.
• 10% of the 1-month GIA rates of commercial banks.
90, 129
Principal risks of investing
in the Fund
The principal risks of investing in the Fund are market risk, individual
stock risk, liquidity risk, operational risk and non-shariah compliant
risk.
External Investment Manager
UOB-OSK Asset Management Sdn Bhd (219478-X)
Trustee
AmanahRaya Trustees Berhad (766894-T)
Investor Profile
The Fund is suitable for an investors who:
• are looking for investments in a diversified portfolio of assets that
conform to the Shariah Principles.
• have a medium to long-term investment horizon of 2 years and
above.
Distribution Policy
Income (if any) is expected to be distributed annually at the
Manager’s discretion, subject to the approval from the Trustee.
Launch Date
November 24, 2000
Financial Year End
April 30
UIC as at LPD
92.26 million Units
Approved Fund Size
1.2 billion Units
Shariah Committee Members
•
•
•
•
89
155
Dato’ Dr. Abdul Halim bin Ismail (Chairman)
Datuk Dr. Syed Othman bin Syed Hussin Al Habshi
Prof. Dato’ Dr. Abdul Monir bin Yaacob
Prof. Dato’ Dr. Mahmood Zuhdi bin Hj. Ab Majid
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Master Prospectus 2010/2011
Further details
on page :
AMB Dana Ikhlas
Fund Category / Type
Balanced Fund / Income and Growth Fund
Objective of the Fund
To attain a mix of regular income stream and possible capital growth
via investments in listed equities, debt instruments and other assets
that are permissible under the Shariah Principles.
91
Investment Strategy
The Fund invests in a wide range of assets that conforms to Shariah
Principles.
93
Asset Allocation
• Min 20% to Max 70% in equities
• Min 20% to Max 70% in debt instrument
• Min 2% in cash and cash equivalent.
94, 130
Benchmark
• 60% of the FBM EMAS Shariah Index.
• 40% of the 12-month GIA rates of commercial banks.
94, 130
Principal risks of investing
in the Fund
The principal risks of investing in the Fund are market risk, individual
stock risk, credit/default risk, profit rate risk, liquidity risk,
operational risk and non-shariah compliant risk.
External Investment Manager
CIMB-Principal Asset Management Berhad (304078-K)
Trustee
AmanahRaya Trustees Berhad (766894-T)
Investor Profile
The Fund is suitable for all investors who are seeking a fully managed
and balanced portfolio of investments that conforms to the Shariah
Principles and has an investment horizon of 5 years or more.
Distribution Policy
Income (if any) is expected to be distributed annually at the
Manager’s discretion, subject to the approval from the Trustee.
Launch Date
September 17, 2002
Financial Year End
November 30
UIC as at LPD
33.66 million Units
Approved Fund Size
400 million Units
Shariah Committee Members
•
•
•
•
92
155
Dato’ Dr. Abdul Halim bin Ismail (Chairman)
Datuk Dr. Syed Othman bin Syed Hussin Al Habshi
Prof. Dato’ Dr. Abdul Monir bin Yaacob
Prof. Dato’ Dr. Mahmood Zuhdi bin Hj. Ab Majid
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Master Prospectus 2010/2011
Further details
on page :
AMB Dana Arif
Fund Category / Type
Bond Fund / Income Fund
Objective of the Fund
To provide a steady appreciation of the NAV of the Fund with a
regular flow of income to our investors through investments in debt
securities that are permissible under Shariah Principles.
95
Investment Strategy
The EIM will invest in a diversified portfolio of Islamic debt securities
in order to maximise return within acceptable risk parameters.
Diversification is to be done across sectors and issuers (to reduce
sector and credit risk), and across durations (to reduce price risk).
Depending on market conditions, the EIM will make the necessary
adjustments and invest in Islamic debt securities that best meet the
Fund objective. Preferred investments will be in Islamic debt
securities that are undervalued relative to their ratings, potential
credit rating upgrade candidates, and situational issues with
potential for improvement in the credit quality. In addition,
movements in the yield curve may uncover further opportunities.
97
Asset Allocation
Min 50% to Max 98% in debt securities
• Min 2% to Max 50% in liquid assets and short-term money market
instruments.
97, 131
Benchmark
12-month GIA-rates of commercial banks.
97, 131
Principal risks of investing
in the Fund
The principal risks of investing in the Fund includes market risk,
credit/default risk, profit rate risk, liquidity risk, operational risk and
non-shariah compliant risk.
External Investment Manager
CIMB-Principal Asset Management Berhad (304078K)
Trustee
AmanahRaya Trustees Berhad (766894-T)
Investor Profile
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 investment horizon
in excess of 5 years.
Distribution Policy
Income (if any) is expected to be distributed annually at the
Manager’s discretion, subject to the approval from the Trustee.
Launch Date
April 27, 2004
Financial Year End
May 31
UIC as at LPD
62.80 million Units
Approved Fund Size
1 billion Units
Shariah Committee Members
•
•
•
•
96
155
Dato’ Dr. Abdul Halim bin Ismail (Chairman)
Datuk Dr. Syed Othman bin Syed Hussin Al Habshi
Prof. Dato’ Dr. Abdul Monir bin Yaacob
Prof. Dato’ Dr. Mahmood Zuhdi bin Hj. Ab Majid
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Master Prospectus 2010/2011
1.3 Fees and Charges
1.3.1 Charges
This table describes the charges that you may directly incur when you purchase or repurchase Units of the
Funds.
Repurchase Charge**
(% of NAV per Unit)
2.5% - 1st year
2.0% - 2nd year
1.5% - 3rd year
1.0% - 4th year
0.5% - 5th year
PNB SIF
1.5%
Nil – On Maturity Date
or upon early
termination of the
Fund (Refer to page
145)
AMBUTF
7%
Nil
AMBBTF
7%
Nil
AMBITF
2%
Nil
AMBILTF
5%
Nil
AMBETF
7%
Nil
AMBVTF
7%
Nil
AMBEBTF
2%
Nil
AMBSCTF
7%
Nil
AMBLTF Today
2%
Nil
AMBLTF 2014
6%
Nil
AMBDTF
6%
Nil
AMBDY
7.5%
Nil
AMBDI
7.5%
Nil
AMBDA
2%
Nil
* The sales charge is negotiable, subject to the Manager’s discretion.
** The repurchase charge is reimbursed to the Fund.
Funds
Switching
Maximum Sales Charge*
(% of NAV per Unit)
Transfer
Charge
EPF Service Charge
An
administrative
fee of RM25
will be charged
for each
transaction.
Investors investing
under the EPF
Member’s
Investment Scheme
will be levied a
service charge of up
to 3% of NAV per
unit as regulated by
EPF.
(Refer to
section 7.1.4
on page 146
for more
details).
Kindly refer to the
Manager for the
latest list of funds
approved by EPF
for investment.
This facility enables Unit Holders to convert Units of one Fund to units of other Funds
managed by the Manager subject to the conditions as stipulated in the section 8.12 on page
153. The minimum investment that can be switched per transaction is 1,000 Units.
The conditions for switching are set out below:
To Recipient
Fund
Equity
Bond
Switching
RM25 per
RM25 per
Equity
transaction
transaction
RM25 per
Up to 5% of amount
Bond
switched
transaction
RM25 per
Up to 1% of amount
Balanced
switched
transaction
Balanced
RM25 per
transaction
Up to 1% of
amount switched
RM25 per
transaction
(Please refer to section 7.1.3 on page 145-146 for more details)
Please note that switching facility is not available for PNB SIF. Distribution Units of
conventional Funds cannot be switched into Shariah Funds. However the principal amount
of conventional Funds is allowed to switched into Shariah Funds.
There are fees and charges involved and investors are advised to consider them before investing in the Funds
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Master Prospectus 2010/2011
1.3.2 Miscellanous
In addition to the charges expressly allowed to be charged directly by the Manager and/or the Trustee, the
Unit Holder might be required to pay a charge not exceeding Ringgit Malaysia Fifty (RM 50.00) only in respect
of :
a) any document supplied to the Unit Holder at the Unit Holder’s request; or
b) any act of administrative nature carried out for the Unit Holder at the Unit Holder’s request.
1.3.3 Fees
This table describes the fees that you may indirectly incur when you invest in the Funds.
Funds
AMBUTF
AMBBTF
Funds
AMBITF
PNB SIF
AMBILTF
Annual
Management Fee
1.00% to 1.50% per annum of
NAV of the Fund (before
deducting annual management
fee and Trustee fee for the day)
calculated on a daily basis.
(Refer to section 7.2.1 on page
146 for more details)
Annual
Trustee Fee
As per the rate mentioned in
section 7.2.2 on page 147 on
the NAV of the Fund (before
deducting
annual
management fee and Trustee
fee for the day), calculated on
a daily basis.
0.75% to 1.50% per annum of
NAV of the Fund (before
deducting annual management
fee and Trustee fee for the day)
calculated on a daily basis. (Refer
to section 7.2.1 on page 146 for
more details)
As per the rate mentioned in
section 7.2.2 on page 147 the
NAV of the Fund (before
deducting
annual
management fee and Trustee
fee for the day), calculated on
a daily basis.
Annual
Management Fee
1.00% to 1.50% per annum of NAV of the
Fund (before deducting annual management
fee and Trustee fee for the day) calculated on
a daily basis.
(Refer to section 7.2.1 on page 146 for more
details)
1.00% per annum of the NAV of the Fund
(before deducting management fees and
Trustee fees for the day) calculated on a daily
basis. (Refer to section 7.2.1 on page 146 for
more details)
1.00% per annum of NAV of the Fund (before
deducting annual management fee and
Trustee fee for the day) calculated on a daily
basis. (Refer to section 7.2.1 on page 146 for
more details)
Custodian Fee
0.035% per annum of the value
of the stock and shares
portfolio subject to a minimum
of RM40,000 per annum and a
maximum of RM120,000 per
annum.
(Refer to section 7.2.3 on page
148 for more details)
0.035% per annum of the value
of the stock and shares
portfolio subject to a minimum
of RM60,000 per annum and a
maximum of RM150,000 per
annum. (Refer to section 7.2.3
on page 148 for more details)
Annual
Trustee Fee
0.035% per annum on the NAV of the Fund (before
deducting annual management fee and Trustee fee for the
day), calculated on a daily basis up to a maximum NAV of
RM100 million and thereafter at a rate of 0.01% per
annum. (Refer to section 7.2.2 on page 147 for more
details)
Up to 0.08% per annum of the NAV of the Fund (before
deducting management fees and Trustee fees for the day)
subject to a minimum of RM18,000 per annum, calculated
on a daily basis. (Refer to section 7.2.2 on page 147 for
more details)
0.08% per annum of the NAV of the Fund (before
deducting annual management fee and Trustee fee for the
day), subject to a minimum of RM18,000 per annum
calculated on a daily basis.
(Refer to section 7.2.2 on page 147 for more details)
There are fees and charges involved and investors are advised to consider them before investing in the Funds
AMB Client Services 03-2034 0800
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Master Prospectus 2010/2011
Annual
Management Fee
1.50% per annum of NAV of the Fund (before
deducting annual management fee and Trustee fee for
the day) calculated on a daily basis. (Refer to section
7.2.1 on page 147 for more details)
Annual
Trustee Fee
0.08% per annum of the NAV of the Fund (before
deducting annual management fee and Trustee fee
for the day), subject to a minimum of RM18,000
per annum calculated on a daily basis.
(Refer to section 7.2.2 on page 147 for more
details)
AMBVTF
1.50% per annum of NAV of the Fund (before
deducting annual management fee and Trustee fee for
the day) calculated on a daily basis. (Refer to section
7.2.1 on page 147 for more details)
0.08% per annum of the NAV of the Fund (before
deducting annual management fee and Trustee fee
for the day), subject to a minimum of RM18,000
per annum calculated on a daily basis. (Refer to
section 7.2.2 on page 147 for more details)
AMBDTF
1.50% per annum of NAV of the Fund (before
deducting annual management fee and Trustee fee for
the day) calculated on a daily basis. (Refer to section
7.2.1 on page 147 for more details)
If the Fund is invested locally only, the rate is 0.07%
per annum (including local custodian fee) on NAV
of the Fund, (before deducting annual
management fee and Trustee fee for the day),
calculated on a daily basis, subject to a minimum
fee of RM18,000 per annum.
Funds
AMBETF
OR
AMBEBTF
Bond Portion : 1.00% per annum of the NAV of the
Fund, (before deducting annual management fee and
Trustee fee for the day) calculated on a daily basis.
(Refer to section 7.2.1 on page 147 for more details)
Equity Portion : 1.75% per annum of the NAV of the
Fund, (before deducting annual management fee and
Trustee fee for the day) calculated on a daily basis.
(Refer to section 7.2.1 on page 147 for more details)
If the Fund is invested locally and abroad, the rates
are 0.07% per annum on the local NAV of the Fund
(including local custodian fee) and 0.07% per
annum on the foreign NAV of the Fund (excluding
foreign custodian fee), (before deducting annual
management fee and Trustee fee for the day),
calculated on a daily basis, subject to a minimum
fee of RM18,000 per annum.
(Refer to section 7.2.2 on page 148 for more
details)
0.07% per annum of the NAV of the Fund (before
deducting annual management fee and Trustee fee
for the day), subject to a minimum of RM18,000
per annum calculated on a daily basis.
(Refer to section 7.2.2 on page 148 for more
details)
The Fund shall generally comprise of bond instruments
thereby its’ base annual management fee is the
standard 1.0% per annum.
AMBSCTF
1.50% per annum of NAV of the Fund (before
deducting annual management fee and Trustee fee
for the day) calculated on a daily basis.
section 7.2.1 on page 147 for more details)
0.07% per annum of the NAV of the Fund (before
deducting annual management fee and Trustee fee
for the day), subject to a minimum of RM18,000
per annum calculated on a daily basis.
(Refer to section 7.2.2 on page 148 for more
details)
There are fees and charges involved and investors are advised to consider them before investing in the Funds
AMB Client Services 03-2034 0800
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Master Prospectus 2010/2011
Funds
AMBLTF
Today
Annual
Management Fee
Bond Portion : 1.00% per annum of the NAV of
the
Fund,
(before
deducting
annual
management fee and Trustee fee for the day)
calculated on a daily basis.
Equity Portion : 1.50% per annum of the NAV of
the
Fund,
(before
deducting
annual
management fee and Trustee fee for the day)
calculated on a daily basis. (Refer to section
7.2.1 on page 147 for more details)
1.00 to 1.10% per annum of NAV of the Fund
(before deducting annual management fee and
Trustee fee for the day) calculated on a daily
basis.
AMBLTF
2014
Bond Portion : 1.00% per annum of the NAV of
the
Fund,
(before
deducting
annual
management fee and Trustee fee for the day)
calculated on a daily basis.
Equity Portion : 1.50% per annum of the NAV of
the
Fund,
(before
deducting
annual
management fee and Trustee fee for the day)
calculated on a daily basis. (Refer to section
7.2.1 on page 147 for more details)
1.10% to 1.35% per annum of NAV of the Fund
(before deducting annual management fee and
Trustee fee for the day) calculated on a daily
basis.
AMBDY
1.50% per annum of the NAV of the Fund
(before deducting annual management fee and
trustee fee for the day) calculated on a daily
basis. (Refer to section 7.2.1 on page 147 for
more details)
AMBDI
Bond Portion : 1.00% per annum of the NAV of
the
Fund,
(before
deducting
annual
management fee and Trustee fee for the day)
calculated on a daily basis.
Equity Portion : 1.50% per annum of the NAV of
the
Fund,
(before
deducting
annual
management fee and Trustee fee for the day)
calculated on a daily basis. (Refer to section
7.2.1 on page 147 for more details)
AMBDA
1.10% to 1.35% per annum of the NAV of the
Fund (before deducting annual management
fee and trustee fee for the day) calculated on a
daily basis. (Refer to section 7.2.1 on page 147
for more details)
Profit sharing scheme of 15:85 of the Net
Investment income of the Fund between the
Manager and the Unit Holder respectively.
(Refer to section 7.2.1 on page 147 for more
details)
Annual
Trustee Fee
If the Fund is invested locally only, the rate is 0.07% per
annum (including local custodian fee) of the NAV of the
Fund (before deducting annual management fee and
Trustee fee for the day) calculated on a daily basis,
subject to a minimum fee of RM18,000 per annum.
OR
If the Fund is invested locally and abroad, the rates are
0.07% per annum on the local NAV of the Fund
(including local custodian fee) and 0.07% per annum on
the foreign NAV of the Fund (excluding foreign custodian
fee, before deducting annual management fee and
Trustee fee for the day), calculated on a daily basis,
subject to a minimum fee of RM18,000 per annum.
(Refer to section 7.2.2 on page 148 for more details)
If the Fund is invested locally only, the rate is 0.07% per
annum (including local custodian fee) on NAV of the
Fund, (before deducting annual management fee and
Trustee fee for the day), calculated on a daily basis,
subject to a minimum fee of RM18,000 per annum.
OR
If the Fund is invested locally and abroad, the rates are
0.07% per annum on the local NAV of the Fund
(including local custodian fee) and 0.07% per annum on
the foreign NAV of the Fund (excluding foreign custodian
fee), (before deducting annual management fee and
Trustee fee for the day), calculated on a daily basis,
subject to a minimum fee of RM18,000 per annum.
(Refer to section 7.2.2 on page 148 for more details)
0.08% per annum of the NAV of the Fund (before
deducting annual management fee and Trustee fee for
the day), subject to a minimum of RM18,000 per annum
calculated on a daily basis.
(Refer to section 7.2.2 on page 147 for more details)
0.08% per annum of the NAV of the Fund (before
deducting annual management fee and Trustee fee for
the day) subject to a minimum of RM18,000 per annum
calculated on a daily basis
(Refer to section 7.2.2 on page 147 for more details)
0.07% per annum of the NAV of the Fund (before
deducting annual management fee and Trustee fee for
the day), subject to a minimum of RM18,000 per annum
calculated on a daily basis.
(Refer to section 7.2.2 on page 148 for more details)
There are fees and charges involved and investors are advised to consider them before investing in the Funds
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This table describes other expenses that you may indirectly incur when you invest in the Funds.
Expenses
Other Annual Operating Expenses
• 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.
There are fees and charges involved and investors are advised to consider them before investing in the Funds.
1.4 Other Information
1.4.1 Information on Transactions
Minimum Initial Investment
Minimum
Initial
Investment
AMBUTF, AMBBTF,
AMBITF, AMBEBTF and
AMBDA
RM1,000.
(inclusive of sales charge).
AMBILTF, AMBETF, AMBVTF,
AMBSCTF, AMBLTF Today, AMBLTF
2014, AMBDTF, AMBDY and AMBDI
RM500.
(inclusive of sales charge).
Individual
PNB SIF
Non-individual
RM10,000
(inclusive of
sales charge)
RM50,000
(inclusive of
sales charge)
Minimum Additional Investment
Minimum
Additional
Investment
AMBUTF, AMBBTF, AMBITF AMBILTF,
AMBETF, AMBVTF, AMBSCTF, AMBLTF
Today, AMBLTF 2014, AMBDTF, AMBDY
and AMBDI
RM100.
(inclusive of sales charge).
AMBEBTF and
AMBDA
Individual
PNB SIF
Non-individual
RM500.
(inclusive of sales
charge).
RM1,000
(inclusive of
sales charge)
RM5,000
(inclusive of
sales charge)
Others
Purchasing and
Repurchasing
of Units
The investment amount payable by the Unit Holders for the purchase of a Unit is calculated at NAV
per Unit. In addition to the investment amount, a sales charge will also be imposed to the Unit
Holders. For PNB SIF, only Units repurchased by the Manager may be resold based on the NAV per
Unit at that point in time. (Refer to section 8.4 on page 150 for more details)
For investors investing under the EPF Members’ Investment Scheme, a service charge of up to 3% of
NAV per Unit is levied as regulated by EPF.
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Purchasing and
Repurchasing
of Units
(Cont’d)
The NAV per Unit is computed on Forward Pricing basis and published daily in major newspapers
and on our website. The Manager has taken necessary procedures to ensure accuracy of
information of pricing sent to the Bernama and the respective newspapers. However, the Manager
would not be held liable for the errors or omission of the printed information on the prices of its
Funds in the newspapers. (Refer to section 8.5 on page 150 for more details)
The repurchase amount payable to the Unit Holders for the repurchase of a Unit is calculated at
NAV per Unit.
(Refer to section 8.4 & 8.5 on page 150 for more details)
Cooling-off
Period
This is within 6 Business Days commencing from the date of purchase i.e. the date on which the
Manager receives the application form and the investment amount.
Cooling-off
Right
The Cooling-off Right is only given to a qualified Unit Holder who is investing in any AMB Family of
Funds for the first time. (Refer to section 8.7 on page 152 for more details)
Repurchase
Period
The Manager will pay the repurchase proceeds to Unit Holders within 10 days upon receipt of the
request to repurchase.
Frequency of
Repurchase
There is no restriction on the frequency of repurchase.
Repurchase Fee
There is no fee applicable on repurchase for the Funds except for PNB SIF. For more details on the
repurchase charge of PNB SIF, please refer to section 7.1.2 on page 145 for more details.
Minimum
Repurchase
amount
AMBUTF, AMBBTF, AMBITF,
AMBILTF, AMBETF, AMBVTF,
AMBEBTF, AMBSCTF, AMBDY
and AMBDI
There
is
no
minimum
repurchase amount imposed on
a Unit Holder. However, for
partial
repurchase,
the
minimum balance of Units
remaining in the account must
always be 100 Units.
AMBLTF Today, AMBLTF
2014, AMBDTF and AMBDA
PNB SIF
There is
no
minimum
repurchase amount imposed
on a Unit Holders. However,
for partial repurchase, the
minimum balance of Units
remaining in the account must
always be 1,000 Units.
There
is
no
minimum
repurchase amount imposed
on a Unit Holder. However, for
partial
repurchase,
the
minimum balance of Units
remaining in the account must
always be 10,000 Units.
Minimum
Holdings to
Maintain
Account
The minimum balance of Units
remaining in the account must
always be 100 Units.
The minimum balance of
Units remaining in the
account must always be 1,000
Units.
The minimum balance of Units
remaining in the account must
always be 10,000 Units for both
individual and non-individual.
Transfer of
Units
A Unit Holder may fully or
partially transfer his Units in a
Fund to another Unit Holder.
However, for partial transfer,
the minimum balance of Units
remaining in the transferor’s
account must always be 100
Units. An administrative fee of
RM25 will be charged for each
transfer.
(Refer to section 8.11 on page
153 for more details)
A Unit Holder may fully or
partially transfer his Units in a
Fund to another Unit Holder.
However, for partial transfer,
the minimum balance of Units
remaining in the transferor’s
account must always be 1,000
Units. An administrative fee of
RM25 will be charged for each
transfer.
(Refer to section 8.11 on page
153 for more details)
A Unit Holder may fully or
partially transfer his Units in a
Fund to any person in
accordance with the Deed.
However, for partial transfer,
the minimum balance of Units
remaining in the transferor’s
account must always be 10,000
Units. An administrative fee of
RM25 will be charged for each
transfer.
(Refer to section 8.11 on page
153 for more details)
The Manager will ensure that the prices forwarded to the press for publication are accurate. However, the Manager
cannot
held Benefit
liable for any error in prices finally published in the press. Investors may contact any Distribution
1.4.2 be
Special
Branch to further confirm the Unit prices.
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Switching of
Units
1.4.2
Switching facility is available for all Funds except for PNB SIF.
Special Benefit
Free Insurance Protection Coverage for PNB SIF
Eligible Unit Holders aged between 18 to 69 with a minimum investment of 10,000 Units at any point of time in
PNB SIF will be given free Group Personal Accident (GPA) Takaful insurance. The sum insured would be RM1.00
for every Unit held subject to a maximum coverage of RM100,000 per Unit Holder of the Fund.
Free Insurance Protection Coverage For AMBUTF and AMBBTF
Eligible Unit Holders aged between 18 to 69 years with a minimum investment of 10,000 Units of AMBUTF and
AMBBTF will be given free GPA insurance with Total Permanent Disability (TPD). This coverage provides
accident protection up to a maximum of RM10,000 per Unit Holder of either Funds.
(Refer to Chapter 3 for more details)
Free Insurance Protection Coverage For AMBETF, AMBVTF and AMBSCTF
Eligible Unit Holders of AMBETF, AMBVTF and AMBSCTF will be given free GPA Insurance coverage. Unit
Holders holding a minimum of 2,000 Units and above will automatically be covered under the GPA insurance
coverage.The sum covered would be RM0.50 for every Unit held subject to a minimum investment of 2,000
Units and maximum coverage of RM200,000. (Refer to Chapter 3 for more details.)
Free Insurance Protection Coverage for AMBLTF 2014
Eligible Unit Holders of AMBLTF 2014 will be given free standard GPA coverage. Unit Holders holding a
minimum amount of 2,000 Units and above will automatically be covered under the standard GPA insurance
for accidental death and TPD. The sum insured would be RM0.50 for every Unit held subject to a minimum
investment of 2,000 Units and maximum coverage of RM150,000. (Refer to Chapter 3 for more details).
Free Insurance Protection Coverage for AMBDTF
Eligible Unit Holders of AMBDTF will be given free GPA coverage. Unit Holders holding a minimum amount of
4,000 Units and above will automatically be covered under the GPA insurance for accidental death and TPD. The
sum insured would be RM0.25 for every Unit held subject to a minimum investment of 4,000 Units and
maximum coverage of RM200,000. (Refer to Chapter 3 for more details).
Option to Investors of AMBLTF 2014 at Maturity
AMBLTF 2014 is a open-ended Fund with fixed lifespan of 10 years from the commencement date of the Fund
and maturing on the 10th anniversary. At maturity, the Unit Holders are given an option to redeem their entire
investment or to reinvest into AMBLTF Today at NAV.
Free Takaful Insurance For AMBDY and AMBDI
Eligible Unit Holders of AMBDY and AMBDI will be given free GPA insurance coverage. Unit Holders holding a
minimum of 2,000 Units and above will automatically be covered under GPA Takaful. The sum covered would
be RM 1,000.00 for every 2,000 Units held subject to a minimum investment of 2,000 Units and maximum
coverage of RM200,000 per Unit Holder. (Refer to chapter 3 for more details).
The terms and conditions of the free takaful insurance scheme as administered by the Manager shall apply.
Please contact the Manager on the terms and conditions of the free takaful insurance.
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1.4.3 Details of Deeds
Unit Holders may refer to the following Deeds for more specific information of the Funds, which are available
at the principal office of the Manager.
1.
Deed in relation to AMBUTF dated March 6, 1992.
•
First Supplemental Deed in relation to AMBUTF dated August 23, 1994.
•
Second Supplemental Deed in relation to AMBUTF dated April 16, 1999.
•
Third Supplemental Deed in relation to AMBUTF dated June 7, 1999.
•
Fourth Supplemental Deed in relation to AMBUTF dated March 23, 2000.
•
Fifth Supplemental Deed in relation to AMBUTF dated February 8, 2002.
•
Sixth Supplemental Deed in relation to AMBUTF dated January 30, 2003.
•
Seventh Supplemental Deed in relation to AMBUTF dated September 12, 2003.
•
Eighth Supplemental Deed in relation to AMBUTF dated May 26, 2005.
2.
Deed in relation to AMBBTF dated September 14, 1994.
•
First Supplemental Deed in relation to AMBBTF dated April 16, 1999.
•
Second Supplemental Deed in relation to AMBBTF dated March 23, 2000.
•
Third Supplemental Deed in relation to AMBBTF dated May 28, 2001.
•
Fourth Supplemental Deed in relation to AMBBTF dated February 8, 2002.
•
Fifth Supplemental Deed in relation to AMBBTF dated September 12, 2003.
•
Sixth Supplemental Deed in relation to AMBBTF dated May 26, 2005.
3.
Deed in relation to AMBITF dated May 15, 1996.
•
First Supplemental Deed in relation to AMBITF dated April 16, 1999.
•
Second Supplemental Deed in relation to AMBITF dated August 18, 1999.
•
Third Supplemental Deed in relation to AMBITF dated March 23, 2000.
•
Fourth Supplemental Deed in relation to AMBITF dated February 13, 2001.
•
Fifth Supplemental Deed in relation to AMBITF dated February 8, 2002.
•
Sixth Supplemental Deed in relation to AMBITF dated September 12, 2003.
•
Seventh Supplemental Deed in relation to AMBITF dated May 26, 2005.
4.
Deed in relation to AMBILTF dated April 8, 2002.
5.
Deed in relation to AMBSCTF dated February 11, 2004.
•
First Supplemental Deed in relation to AMBSCTF dated May 26, 2005.
6.
Deed in relation to AMBEBTF dated May 7, 2003.
•
First Supplemental Deed in relation to AMBEBTF dated May 26, 2005.
7.
Deed in relation to AMBETF dated December 4, 2002.
8.
Deed in relation to AMBVTF dated December 4, 2002.
9.
Deed in relation to AMBLTF Today dated October 28, 2004.
•
First Supplemental Deed in relation to AMBLTF Today dated May 26, 2005.
10. Deed in relation to AMBLTF 2014 dated October 28, 2004.
•
First Supplemental Deed in relation to AMBLTF 2014 dated May 26, 2005.
11. Deed in relation to AMBDTF dated May 2, 2006.
12. Deed in relation to PNB SIF dated March 7, 2008.
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13.
Deed in relation to AMBDY dated October 25, 2000
•
First Supplemental Deed in relation to AMBDY dated September 12, 2003
•
Second Supplemental Deed in relation to AMBDY dated May 26, 2005
•
Third Supplemental Deed in relation to AMBDY dated August 13, 2008
14.
Deed in relation to AMBDA dated March 29, 2004
•
First Supplemental Deed in relation to AMBDA dated May 26, 2005
•
Second Supplemental Deed in relation AMBDA dated August 13, 2008
15.
Deed in relation to AMBDI dated September 4, 2002
•
First Supplemental Deed in relation to AMBDI dated August 13, 2008
1.4.4 Investment via EPF Members’ Investment Scheme
EPF Members’ Investment Scheme
The Manager is a unit trust management company under the EPF Members’ Investment Scheme. For eligible
Funds, you may withdraw a portion of your EPF savings to invest in the Fund, 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.
Kindly contact the Manager to confirm which Funds are currently eligible for investment via the EPF Members’
Investment Scheme.
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 37.
Past performance of the Funds are not an indication of its future performance.
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2 Risk Factors
2.1
Risks of Investing in Unit Trusts
All investments carry some form of risk. It is important to note that when you invest you should be prepared to
accept a degree of risk, as most investments are affected by ever changing market conditions, some of which
impact positively and some negatively. Therefore, no matter how experienced a fund manager may be, certain
factors, which will affect the value of investments, may be beyond their control. So, the value of your
investments may go down as well as up. One should consider the following when investing in a unit trust fund:
General Risk
Market Risk
For a unit trust that has stocks or bonds 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 stock or bond market as a whole, will also affect the value of investment either in a positive or
negative way.
Individual Stock Risk
The performance of a fund that invests in stocks is affected by every individual stock that the said fund has
invested in. The volatility of prices in each stock will affect the fund’s value daily.
Non-Compliance Risk
This is the risk that the manager and others associated with the scheme will not follow the rules set out in the
scheme’s constitution and internal policies, or the law that governs the scheme, or will act fraudulently or
dishonestly. However, this risk is greatly reduced via stringent internal controls and constant crossdepartmental checking employed by the manager. In addition, a yearly or any unscheduled internal audit
exercise will be conducted to check any compliance matters that might have been inadvertently overlooked by
compliance department. The presence of the trustee who has an oversight function over management of the
Funds will further add to the reduction of such risk.
Inflation Risk
Ideally the purpose of any investment is to secure returns that are greater than the inflation rate. While a fund
will constantly seek to maximise returns and exceed inflation rate, it may occasionally experience losses, which
result in returns that will not keep pace with inflation in the short run.
Liquidity Risk
The various securities that are purchased by a fund may encounter liquidity risk. Liquidity risk relates to the
fund’s ability to quickly and easily trade, at a reasonable price, in and out of positions. Should a fund comprise
a security that has become temporarily or permanently illiquid or difficult to sell, the fund manager may need
to sell the security at a discount to its fair value, which eventually affects the fund’s value.
Fund Management Risk
Performance of the 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.
Operational Risk
Operational risk is the risk of loss due to the breakdown, deficiencies or weaknesses in the operational support
functions resulting in the operations; or internal control processes producing an insufficient degree of
customer quality; or internal control by the Company. Operational risk is typically associated with human
error, system failure, fraud and inadequate or defective procedures and controls.
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Returns Not Guaranteed
As a result of market risks, the manager is unable to guarantee the distribution payout to unit holders or the
investment returns of the fund. However, the manager will take reasonable steps to ensure that this risk is
minimized through a prudent investment approach, which is centred on fundamental stocks and market
analysis.
Loan Financing Risk
Investors who take end-financing loans to purchase units in a unit trust fund must be prepared to accept
gearing risks as the prices of the units can go down as well as up. The investor may be required to top up the
difference in the event the unit price goes below the margin of advance.
Force Majeure Risk
The risk of exposure to force majeure events, where events are not within the control of Manager. This
includes terrorist attacks, politically instability, natural disasters and spread of disease where risks are
generally unforeseen and may have direct impact on the business.
Credit/Default Risk
Credit risk refers to the possibility that the issuer or financial institution of a securities/instruments/deposit
may not be able to make interest payments or repay the principal in a timely manner. This will translate to
losses that will reduce the value of a fund.
Please refer to Chapter 3 : Detailed Information on the Funds for information on fund specific risks and risk
management.
2.2
Control of Risk
The EIM will take reasonable steps to ensure that the above potential risks are managed by:(a)
actively monitoring the Fund’s asset allocation to ensure minimum impact from any adverse market
movements. They will ensure that the equities and fixed income securities are carefully selected
through site visits, fundamental analysis and portfolio diversification. In the case of fixed income
securities, the External Investment Manager will also focus on the credit quality of the fixed income
securities, which must be of good investment grade of at least BBB rating or equivalent by RAM, MARC
or any other similar rating establishment.
(b)
investing the Fund over a wide range of equities and fixed income securities of different companies
which provides diversification across a number of sectors and industries, minimising the risk not only of
any single company’s securities becoming worthless, but also of all holdings suffering uniformly adverse
business conditions. The External Investment Manager will seek to reduce all these risks associated with
the Fund by virtue of its experience, the analytical process and by structuring a broadly diversified
investment pool.
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3 Detailed Information on the Funds
3.1 Introduction
The key distinguishing features of the 15 Funds are shown below in order to assist investors in making an
informed judgement of the distinctive features of each Fund in relation to their personal investment and
financial goals.
PNB Structured Investment Fund
Introduction
The Fund has a 5-year tenure from the Commencement Date. Upon the maturity of the Fund, all of the asset
classes will be liquidated and the proceeds of liquidation will be distributed to Unit Holders. During the tenure
of the Fund, only Units repurchased by the Manager may be resold based on the NAV per Unit at that point in
time.
PNB REIT is intended to be listed before the maturity of the Fund. However, if this is not achieved, PNB REIT
will be wound-up and the proceeds will be distributed to the sole unit holder of PNB REIT, namely PNB SIF.
The Fund shall be terminated on the Maturity Date and all Units held by the Unit Holders will be redeemed.
The NAV per Unit will be calculated by dividing the NAV of the Fund by the Units in Circulation. No redemption
charge will be imposed on maturity. The net proceeds will be paid to Unit Holders within 2 months after the
Maturity Date.
Type of Fund
Income and Growth Fund
Category of Fund
Mixed Asset
Investment Objective
The Fund seeks to provide investment opportunities that generate reasonable returns and growth over the
tenure of the Fund while endeavouring to provide capital protection to Unit Holders.
Any material change to the investment objective of the Fund would require Unit Holders’ approval.
Investment Policy and Strategy
In selecting its investments, the Fund search for strong undervalued investment opportunities that shows
potential for long-term capital appreciation as well as income, through a selection process based on careful
analysis and valuation by the External Investment Manager’s team of analysts, who will then submit their
recommendations to the Investment Committee of the Fund for approvals.
To achieve this objective, the Fund will be investing in a diversified portfolio of Structured Products, PNB REIT,
cash equivalent instruments and any other investments permitted by the Deed.
Structured Products
Investments in Structured Products are in RM-denominated products that are principal protected upon
maturity. As for diversification purposes in Structured Products, the Fund will be investing in a portfolio of
Structured Products with exposure linked to one or more assets such as global equities, interest rates, indices
or any other underlying(s) as may be permitted under the Deed. The strategies employed by each of the
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Structured Product will be different in nature, ensuring that the expected risk and return for the portfolio of
Structured Products is well-diversified.
PNB REIT
Investment in PNB REIT offers potential regular income and upside potential capital gain through exposure in
properties. PNB REIT has principal protection mechanisms in place. It is the intention of AMB and PHNB to list
PNB REIT on the Main Market of Bursa Malaysia before the maturity of the Fund on July 5, 2013, hence it may
be an opportunity for the Fund to be able to secure capital gains from the listing exercise.
Other Permitted Investments
Investments that are permitted by the Deed include a diversified portfolio of listed securities, unlisted
securities and fixed income securities in Malaysia or any other eligible market. Stock selection for listed and
unlisted securities will be based on fundamental analysis of the companies, which include among others the
financial strength, management capability, prospects of the industry as well as its business cycle. The selection
of fixed income securities is based on the interest rate outlook, potential returns, tenure and yields at
reasonable levels of risks.
Cash Equivalent Instruments
To meet liquidity requirements, the Fund will also be investing in cash equivalent instruments.
In the overall management of the Fund, active asset allocation strategies will be employed, whereby the Fund
will actively manage the distribution of capital between the different assets in order to reduce the adverse
effects of downturns and capitalise on upturns, to enable the Fund to pay out competitive returns to investors.
The Fund will adopt an active investment strategy for each asset class and ensure that the portfolios of each
asset class will be well-diversified at all times. The decision to rebalance the portfolios of any of the asset
classes will take into account analysis and considerations on the prevailing market and economy outlook,
valuations and liquidity requirements.
Policy on Active and Frequent Trading of Securities
The Fund is actively managed, and the frequency of trading of securities is dependent on the objective of the
Fund and available market opportunities.
Temporary Defensive Positions
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. The temporary defensive positions may involve the Fund holding only cash or cash
equivalents.
Approved Fund Size
The approved fund size of the Fund is 3 billion Units.
Asset Allocation
Up to 80% of the Fund’s Net Asset Value may be invested in Structured Products; and
Up to 50% of the Fund’s Net Asset Value may be invested in PNB REIT; and
Up to 80% of the Fund’s Net Asset Value may be invested in any Other Permitted Investments which
include a diversified portfolio of listed securities, primarily on the Bursa Securities, unlisted securities and
fixed income securities; and
A minimum of 2% of the Fund’s Net Asset Value will be invested in cash equivalent instruments and
money market instruments to provide for liquidity purposes.
Maturity of the Fund
PNB SIF will mature on July 5, 2013.
The Fund shall be terminated on the Maturity Date and all Units held by the Unit Holders will be redeemed.
The NAV per Unit will be calculated by dividing the NAV of the Fund by the Units in Circulation. No repurchase
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charge will be imposed on maturity. The net proceeds will be paid to Unit Holders within 2 months after the
Maturity Date.
Benchmark
The benchmark of the Fund is Maybank 12-month fixed deposit rate. The quoted fixed deposit rates are readily
available at any Maybank branch.
Benefits for Unit Holders
Free Insurance Coverage
Free insurance coverage on GPA takaful is provided for Unit Holders aged between 18 to 69 with a minimum
investment of 10,000 Units at any point of time in PNB SIF. The amount of insurance is equal to the number of
Units invested in the ratio of RM1.00 insurance coverage for each Unit, subject to a maximum amount of
RM100,000 per Unit Holder of the Fund. The terms and conditions of the free insurance coverage shall apply .
Accessibility
Unit Holders can easily access any Distribution Branch to perform any enquiry or transaction.
Tax Exemption
PNB SIF has been granted income tax exemption pursuant to Section 127(3A) of the Malaysian Income Tax Act,
1967 (MITA) and withholding tax exemption pursuant to Section 127(3A) of the MITA in respect of
distributions made by PNB REIT.
Illustration of the structure of PNB SIF
Unit Holders
Investment in PNBSIF
Distribution to Unit Holders
PNB SIF
Management Services
Investment
Management
and other
related services
Manager’s fee
Management
fee
Investment
Committee
Annual coupon payment
and capital gain derived
from the Structured
Products (if any)
Capital gain and
dividend
income
PNB (Investment Manager)
Investment in cash
equivalent instruments
ART
(Trustee)
Act on behalf of Unit Holder
AMB(Manager)
Interest
Income
from cash
equivalent
instruments
Trustee’s fee
PNB REIT
Structured
Products
Other Permitted
Investments
Distributable income
from PNB REIT
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Capital Protection Mechanism
The Fund is not a Capital Protected Fund but it has a capital protection mechanism embedded in its
structure.
In this part of the Master Prospectus, details are provided on how the capital protection features of the Fund
work and the circumstances under which the capital protection can be exercised.
The Fund’s portfolio is structured to ensure that your capital can be preserved through investments in a
combination of Structured Products and PNB REIT whilst capitalizing on the returns derived from investing in
PNB REIT as well as the potential returns of investing in Structured Products derived from exposure to the
performance of the underlying asset(s).
The Fund’s capital protection mechanism is structured in the following manner:
(i)
Via Structured Products (which have been issued in accordance with such relevant regulatory
requirements as may be imposed by the SC and Bank Negara Malaysia) whereby any principal invested in
the Structured Products is protected at maturity.
•
Principal protection may be sought through financial instruments purchased by the issuer which the
issuer considers appropriate for protecting the principal invested in the Structured Products and such
financial instruments may in turn be managed under Dynamic Investment Allocation Mechanism
(DIAM).
•
The financial instruments could take the form of money market instruments (which generate income
on a short term low risk basis) and/or fixed income instruments (which are bought at a discount to
provide a nominal value equivalent to the capital sought to be protected at maturity). Interest earned
or money not invested on those financial instruments may be used to purchase option(s) on the
underlying(s).
•
Under the DIAM, exposure is allocated between the underlying and risk free asset(s), depending on
the performance of the underlying. Should the underlying underperforms, more exposure is then
allocated to the risk free asset(s).
(ii) PNB REIT’s capital protection mechanism:•
The Fund will also be investing in units of PNB REIT which offer potential regular income and upside
potential through exposure in properties. PNB REIT has principal protection features whereby its
properties have a buy-back option from the respective vendors to repurchase the properties at the
highest price offered by third party purchasers or the original purchase price plus capital expenditure
on the respective property, whichever is the higher, and subject to the REITs Guidelines.
•
However, if PNB REIT is ready for listing, Unit Holders may benefit from the potential capital gains
from the listing exercise.
Potential Risks Associated with PNB SIF
The investment in PNB SIF, like other financial investments, involves a variety of significant risks. The specific
risks presented by a particular investment in PNB SIF necessarily depend upon the terms of the investment and
your circumstances. All investments in PNB SIF involve some combination of the following types of risk:
Counterparty Risk are the risks that DBMB or any other financial institution that PNB SIF may deal with, under
certain circumstances, fail to perform their obligations when due.
Market Risk is the risk that the value of an investment in PNB SIF will be adversely affected by fluctuations in
the level or volatility of or correlation or relationship between one or more market prices, rates or indices or
other market factors or by illiquidity in the market for the investment in PNB SIF or in a related market.
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Structured Product Risk is the risk that the value of structured product will fluctuate and be dependant on
market forces for example, movement of the underlying asset, volatility of the underlying assets, interest rate
levels, the correlation of the underlying assets, the implied future direction of the underlying assets and other
such factors.
Currency Risk is the risk from investment returns in Structured Products linked to foreign underlying assets
which may be affected by fluctuations in currency exchange rates.
Liquidity Risk is the risk that due to prevailing market conditions it may not be possible to liquidate, nor to
assess a fair value of your position. In addition, you should be aware that the operation of exchange rules or
any power or system failure affecting electronic trading facilities may, in certain circumstances, impair or
prevent the Manager from liquidating or executing your investments in PNB SIF, thus increasing the likelihood
of loss.
Early Repurchase Risk is the risk that in the event of any redemption of the Structured Products prior to
maturity, the principal invested in the Structured Products is not protected. The principal invested in the
Structured Products is principal or capital protected only upon maturity.
Individual Asset Risk or Specific Risk is the risk that the volatility of prices in each asset will affect the Fund’s
valuation. The performance of the Fund is affected by every individual asset that the Fund has invested in.
Specific risks can be associated with management errors, shift in consumer taste, advertising campaign,
lawsuits and competitive industry conditions.
Legal Risk is the risk that in the event of any default in relation to an investment in PNB SIF by one party, the
enforcement by other party of its rights against the defaulting party will be subject to the provisions in the
documentation for the investment in PNB SIF, the choice of governing law and the choice of jurisdiction. Legal
proceedings to enforce ones rights may be costly and time consuming and the final court judgment or order
may not fully compensate the non-defaulting party fully for the losses or damages suffered by it.
Prepayment & Commitment Risk is the risk that if an investment in PNB SIF is structured to be held to
maturity, early repurchase (other than by way of exercise of call or put, if any) will be at the Manager’s
discretion. As such, you should be prepared to commit your funds for the entire tenure of the investment in
PNB SIF. Certain investments in PNB SIF may also contain the Manager’s right to call the investment in PNB SIF
prior to maturity date. This right to call the investment in PNB SIF shall only be exercised by the Manager in
accordance with the terms specified. The amount to be received by you in the event of such early call shall be
as specified in the product documentation.
Funding Risk is the risk that, as a result of mismatches or delays in the timing of cash flows due from or to you
under investments in PNB SIF or related hedging, trading, collateral or other transactions, you will not have
adequate cash available to fund current obligations.
Operational Risk is the risk of loss arising from inadequacies in, or failures of, our internal procedures and
controls for monitoring and quantifying the risks and contractual obligations associated with investments in
PNB SIF.
Control of Risk
The External Investment Manager will take reasonable steps to ensure that the above potential risks are
managed by :
a)
Despite selecting Structured Products which are capital protected at maturity, the Fund is still exposed to
counter party risk. This risk is managed through careful choice of the issuer where the criteria of financial
strength as well as the credit rating of the issuer must be met. The credit rating of the issuer is
continuously monitored through assessments of the counterparty’s shareholders’ funds, profitability,
capital adequacy ratio and ratings. In the event the credit rating of the issuer is downgraded to below an
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acceptable level, the Fund would adhere to the prevailing requirements of the Guidelines, as well as
endeavour to eliminate its exposure at the best price possible.
b) adopting an active portfolio rebalancing strategy at the Fund level and in the portfolios of structured
products and equity. The rebalancing strategy varies depending on the expected risk and return on the
securities invested and changes in the market.
c)
actively monitoring the Fund’s asset allocation to ensure minimum impact from any adverse market
movements and the equities and fixed income securities are carefully selected through site visits,
fundamental analysis and portfolio diversification via active management of the Fund. In the case of fixed
income securities, the External Investment Manager will also focus on the credit quality of the fixed
income securities, which must be of good investment grade of at least BBB rating or equivalent by RAM,
MARC or any other similar rating establishment.
d) investing the Fund over a wide range of equities and fixed income securities of different companies which
provides diversification across a number of sectors and industries, minimising the risk not only of any
single company’s securities becoming worthless, but also of all holdings suffering uniformly adverse
business conditions. The External Investment Manager will seek to reduce all these risks associated with
the Fund by virtue of its experience, the analytical process and by structuring a broadly diversified
investment pool.
e)
ensuring that its investment recommendations to the Investment Committee of the Fund always adheres
to the Fund’s investment objectives and investment restrictions and limits.
Detailed Information on the Investments of PNB SIF
Structured Products
The Structured Products offer principal or capital protection at maturity with the potential upside exposure
linked to one or more assets such as global equities, commodities, currencies interest rates, indices or any
other underlying(s) approved by the Investment Committee.
Principal protection may be provided through the purchase of financial instruments which the issuer considers
appropriate for protecting the principal invested in the Structured Products and such financial instruments
may in turn be managed under DIAM. Principal invested in the Structured Products is protected if the
Structured Products are redeemed on the maturity date of the Structured Products.
The Fund will adopt an active trading strategy in the portfolio of Structured Products, whereby the Investment
Manager has the option to increase or decrease the Fund’s allocation in Structured Products, taking into
account analysis and considerations on the prevailing market and economy outlook, valuations and liquidity
requirements. Investors should note that under this active asset allocation strategy, not all Structured Products
invested into by the Fund may necessarily be held to maturity, and Structured Products not held to maturity
will not be subject to principal protection.
DBMB, a licensed bank incorporated in Malaysia, is an issuer of the Structured Products for PNB SIF.
About DBMB
DBMB began its history in Malaysia as far back as 1967. Prior to 1994, DBMB had been present in Malaysia as a
branch of Deutsche Bank AG. Following changes to the banking industry, DBMB was incorporated under the
Companies Act 1965 on August 22, 1994 as a public company. It obtained a Certificate of Commencement of
Business from the Registrar of Companies, Malaysia on September 14, 1994. Since then, it has significantly
expanded its activities in Malaysia to serve domestic and international clients.
DBMB is a licensed institution as defined in the BAFIA and obtained a license to carry on banking business in
Malaysia from the Minister of Finance, Malaysia on October 1, 1994. It is principally engaged in the activities of
banking and related financial services and is regulated by Bank Negara Malaysia. DBMB is a wholly-owned
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subsidiary of Deutsche Bank AG, a banking institution and stock corporation incorporated under the laws of
Germany.
DBMB has received awards for being lead managers of bond issues in both the local and foreign markets.
DBMB is recognised as a significant player in providing quality and innovative investment solutions. DBMB’s
license by Bank Negara Malaysia to carry on the banking business allows DBMB amongst others, to execute
derivative transactions. The respective long and short term general bank ratings of AA1 and P1 with stable
outlook, accorded to DBMB by RAM was reaffirmed by RAM in March 2009.
The Board of Directors
The members on the Board of Directors of DBMB as of LPD are as follows:
•
•
•
•
•
•
•
•
Tun Mohamed Dzaiddin bin Haji Abdullah (Chairman & Independent Non-Executive Director)
Dato’ Ahmad Johari bin Abdul Razak (Independent Non-Executive Director)
Dato’ Mohamed Nizam bin Abdul Razak (Non-Independent Non-Executive Director)
Stefan Ulrich Dietmar Boecker (Non-Independent Non-Executive Director)
Mr. Raymond Yeoh Cheng Seong (Non-Independent Executive Director & Chief Executive Officer)
Mr. Ng Soon Lai @ Ng Siek Chuan (Independent Non-Executive Director)
Mr. William Cheah Yoke Loong (Independent Non-Executive Director)
Mr. Richard Anthony Yacenda Jr. (Non-Independent Non-Executive Director)
Summary of Financial Position
The following is a summary of the past performance of DBMB based on audited accounts for the last 3 years:
Year Ended 31 December
Paid-up Share Capital
Shareholders’ Funds
Turnover
Pre-tax Profit
Post-tax Profit
2009
(RM’000)
173,599
1,189,540
254,042
145,388
109,992
2008
(RM’000)
173,599
1,077,481
280,306
194,682
151,770
2007
(RM’000)
173,599
925,986
292,177
194,498
140,705
Rating of DBMB
The respective long and short-term general bank ratings of AA1 and P1 with stable outlook, accorded to DBMB
by RAM was reaffirmed by RAM in March 2009.
Long Term Ratings Definition
AA1 High safety for timely payment of interest and principal.
Short Term Ratings Definition
P1 Very strong safety with regard to timely payment on the instrument.
Units not obligation of DBMB
DBMB is an issuer of the Structured Products. The Units are not obligations of DBMB or any other entity within
the Deutsche Bank group.
PNB REIT
As at LPD, PNB SIF has invested 644 million units in PNB REIT.
Other Permitted Investments
The Fund will be investing in any other investments permitted by the Deed.
Cash Equivalent Instruments
The Fund will also be investing in cash equivalent instruments and any other investments permitted by the
Deed.
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AMB Unit Trust Fund
Type of Fund
Growth Fund
Category of Fund
Equity Fund
Investment Philosophy
AMBUTF is an equity fund that consists of a diversified portfolio of blue chip and high growth stocks listed on
the Bursa Securities. By investing in a diversified portfolio of blue chip and high growth stocks in Malaysia,
AMBUTF provides a better spread of investments than could be achieved by investors with a small amount of
money to invest.
Investment Objective
To achieve a steady long-term income (over 5 year) and capital growth through a diversified portfolio of equity
investments in larger capitalized stocks (prime focus on Main Market and liquid stocks).
Any material change to the investment objective of the Fund would require Unit Holders’ approval.
Approved Fund Size of AMBUTF
The approved fund size for AMBUTF is 1.5 billion Units.
Investor Profile
AMBUTF is particularly suited to investors who are seeking a diversified portfolio of equity investment. Our
investment team aims to maintain a portfolio of stocks, listed on the Bursa Securities, which have a strong
potential for growth.
AMBUTF is appropriate for investors who are attracted to the share market by the prospect of capital gains
and dividends but are discouraged by the need to be kept informed of market developments and constant
monitoring of their investments. The Fund is suitable for all investors whose primary interest is in investments
for the long term and capital growth of their investment. It is for those who are seeking investment in larger
blue chips and growth stocks.
Benefits for Investors
Shares historically provided returns superior to other investment instruments over the long term. The volatility
of returns associated with this type of investment is reduced by diversifying the Fund’s investments across a
variety of companies operating in different industries.
Specific Benefits of Investing in AMBUTF
Free Insurance Protection Coverage for AMBUTF
Eligible Unit Holders of AMBUTF will be given free GPA and TPD insurance coverage. Unit Holders holding a
minimum of 10,000 Units and above will automatically be covered under the GPA and TPD insurance coverage.
Coverage ceases automatically if the number of Units held is reduced to less than 10,000 Units. Eligible Unit
Holders must be aged between 18 to 69 years old. The GPA coverage ceases automatically when you attain the
age of 70 years old. Only eligible principal Unit Holders will be covered under the GPA insurance coverage.
Regular Savings Plan
You have the opportunity to invest through standing instruction. This plan makes regular savings easy and
allows you to arrange transfers from your bank account to AMBUTF.
Affordability
Investors can invest with just RM1,000 as minimum initial investment and subsequent investments can be
made with a minimum of RM100.
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Accessibility
Investors can easily access any Distribution Branch to perform any enquiry or transaction.
Potential Risks Associated with AMBUTF
Market Risk
This is fluctuation in the market performance due to factors such as fluctuation in interest rates, and changes
in economic climate, political and social environments that will affect the stock market as a whole.
Individual Stock Risk
AMBUTF 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 shortterm. This accounts for the market risk when investing in this Fund. However, this impact is minimised through
portfolio diversification.
Liquidity Risk
Liquidity risk is the risk that the security/instrument invested in cannot be readily sold and converted into cash.
This can occur when trading volume for the security is low and/or when there is a lack of demand for the
security. In managing liquidity risk, the Fund will limit its exposure to instruments, which are deemed less
liquid.
Operational Risk is the risk of loss to the unit holder arising from inadequacies in, or failures of, our internal
procedures and controls for monitoring and quantifying the risks and contractual obligations associated with
investments in AMBUTF.
Control of Risk
The External Investment Manager will take reasonable steps to ensure that the above potential risks are
managed by:
(a)
actively monitoring the Fund’s asset allocation to ensure minimum impact from any adverse market
movements. They will ensure that the equities are carefully selected through site visits, fundamental
analysis and portfolio diversification.
(b)
investing the Fund over a wide range of equities of different companies which provides diversification
across a number of sectors and industries, minimising the risk not only of any single company’s
securities becoming worthless, but also of all holdings suffering uniformly adverse business conditions.
The External Investment Manager will seek to reduce all these risks associated with the Fund by virtue
of its experience, the analytical process and by structuring a broadly diversified investment pool.
Temporary Defensive Positions
When deemed appropriate and for the benefit of the Fund, the External Investment Manager may take
temporary defensive positions in dealing with adverse market, economic, political and other conditions, that
maybe inconsistent with the Fund’s principal strategy. In this regard, the Fund may hold cash at higher levels
than what is prescribed or cash equivalent instruments as the Fund’s only asset.
Investment Policy
Under normal circumstances, the Fund will endeavour to be fully invested in Malaysian equities, unless the
equity market outlook is less attractive.
The EIM may invest up to 10% of the Net Asset Value of the Fund in securities that are not traded in or under
the rules of an eligible market.
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Policy and Strategy on Listed and Unlisted Securities
AMBUTF’s policy and strategy is to concentrate on quality listed equities that can increase the potential for
better long-term returns, by focusing on securing capital growth for Unit Holders, with income considered
incidental to the investment process. The capital growth is achieved through a diversified portfolio of equity
investment in larger capitalised stocks with prime focus on main board and liquid stocks.
The investment process for unlisted securities is similar to the process used for the listed securities. Decision
will be made after thorough assessment on the companies, using in-house fundamental research supported by
external research and companies’ prospectuses. The main focus would be on companies, which are industry
leaders, with good earnings track record, potential strong growth based on good medium to long-term
earnings visibility, quality management as well as good corporate governance. The process also involves
constant monitoring of the current investment to ensure that it complies with the objectives of the Fund.
Policy on Active and Frequent Trading of Securities
The Fund is actively managed and the frequency of trading of securities is dependent on the objective of the
Fund and available market opportunities.
Investment Strategy/Investment Mechanism
AMBUTF invests primarily in blue chips and high growth stocks that can increase the potential for better longterm returns by focusing on corporations with the following characteristics:
Industry leader, good earnings track record, potential strong growth and strength of management. AMBUTF
invests largely in companies with market capitalisation of more than RM700 million.
The asset allocation between the various investment assets referred to above and the decision to invest, sell or
trade is based on the decision of the External Investment Manager who will adopt an active fund management
approach.
Asset Allocation
• Minimum 40% Maximum 90% in equities
• Minimum 10% in liquid assets
Benchmark
The performance of AMBUTF will be benchmarked against 90% of the performance of the FBM KLCI and 10%
of the 1-month fixed deposit rate of commercial banks, which are obtainable from the Bursa Malaysia website
and the Bank Negara website respectively.
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AMB Balanced Trust Fund
Type of Fund
Growth and Income Fund
Category of Fund
Balanced Fund
Investment Philosophy
AMBBTF aims to provide the investor with a broad exposure to different asset classes including shares with
less fluctuation in value and fixed income securities. This is a growth and income Fund that pursues steady
income and long-term growth through diversified investment in equities, bonds, convertibles, warrants and
short-term money market instruments.
Investment Objective
To provide a balance between income and long-term (over 5 years) capital appreciation.
Any material change to the investment objective of the Fund would require Unit Holders’ approval.
Approved Fund Size of AMBBTF
The approved fund size of AMBBTF is 1.15 billion Units.
Investors’ Profile
AMBBTF is appropriate for investors who are seeking a fully managed balanced portfolio of investments with a
long-term investment horizon. AMBBTF aims to provide investors with a combination of income and capital
gains over the medium to long term.
Benefits for Investors
Diversification
When structuring an investment portfolio, diversification is one of the main tools used to reduce investment
risk and enhance returns. Diversification should be within investment sectors (investing in a diverse range of
shares) as well as across a variety of investment instruments (for example shares, fixed income securities and
short-term money market instruments). In this manner, investors can usually access a broader range of
securities than they could have by investing on their own. Such a diversified portfolio reduces risks, as should
some investments drop in value there may be increases in value of other investments thus mitigating the
downside risk. Because of the diversified nature of AMBBTF, risks associated with a downturn in a particular
investment are reduced.
Specific Benefits of Investing in AMBBTF
Free Insurance Protection Coverage for AMBBTF
Eligible Unit Holders of AMBBTF will be given free GPA and TPD insurance coverage. Unit Holders holding a
minimum of 10,000 Units and above will automatically be covered under the GPA and TPD insurance coverage.
Coverage ceases automatically if the number of Units held is reduced to less than 10,000 Units. Eligible Unit
Holders must be aged between 18 to 69 years old. The GPA coverage ceases automatically when you attain the
age of 70 years old. Only eligible principal Unit Holders will be covered under the GPA insurance coverage.
Regular Savings Plan
You have the opportunity to invest through standing instruction. This plan makes regular savings easy and
allows you to arrange transfers from your bank account to AMBBTF.
Affordability
Investors can invest with just RM1,000 as a minimum initial investment and subsequent investments can be
made with a minimum of RM100.
Accessibility
Investors can easily access any Distribution Branch to perform any enquiry or transaction.
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Potential Risks Associated with AMBBTF
Market Risk
This is fluctuation in the market performance due to factors such as fluctuation in interest rates, and changes
in economic climate, political and social environments that will affect the stock or bond market as a whole.
They will also affect the value of investment either in a positive or negative way.
Individual Stock Risk
AMBBTF 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 shortterm. This accounts for the market risk when investing in this Fund. However, this impact is minimised through
portfolio diversification.
Credit/Default Risk
AMBBTF invests in fixed income securities, so its portfolio is subject to credit risk. This is the risk that the issuer
of the security may default and not be able to make timely principal and interest payments on the security.
The lower-rated corporate debt securities will normally have greater risk of defaults.
Interest Rate Risk
Fixed income securities are particularly sensitive to movements in interest rates. When interest rates rise, the
value of fixed income securities falls and vice versa, thus affecting the NAV of the Fund. Furthermore, fixed
income securities with longer maturity and lower yield coupon rates are more susceptible to interest rate
movements.
Liquidity Risk
Liquidity risk is the risk that the security/instrument invested in cannot be readily sold and converted into cash.
This can occur when trading volume for the security is low and/or when there is a lack of demand for the
security. In managing liquidity risk, the Fund will limit its exposure to instruments, which are deemed less
liquid.
Operational Risk is the risk of loss to the unit holder arising from inadequacies in, or failures of, our internal
procedures and controls for monitoring and quantifying the risks and contractual obligations associated with
investments in AMBBTF.
Control of Risk
The EIM will take reasonable steps to ensure that the above potential risks are managed by:
a) actively monitoring the Fund’s asset allocation to ensure minimum impact from any adverse market
movements. They will ensure that the fixed income securities and equities are carefully selected through
company visits, fundamental analysis and portfolio diversification. In the case of fixed income securities,
the EIM will also focus on the credit quality of the fixed income securities, which must be of good
investment grade of at least BBB rating or equivalent by RAM, MARC or any other similar rating
establishment.
b) investing the Fund over a wide range of fixed income securities and equities of different companies which
provides diversification across a number of sectors and industries, minimising the risk not only of any single
company’s securities becoming worthless, but also of all holdings suffering uniformly adverse business
conditions.
c) lengthening or shortening the Fund’s average maturity period of the fixed income investments (within the
Fund’s objective) in anticipation of changing interest rates.
d) selecting investments that are bank or government guaranteed or secured against assets to mitigate
default risk.
The EIM will seek to reduce all risks associated with the Fund by virtue of its experience, the analytical process
adopted and by structuring a broadly diversified investment pool.
Temporary Defensive Position
When deemed appropriate and for the benefit of the Fund, the EIM may take temporary defensive positions
which may be inconsistent with the Fund’s principal strategy in attempting to respond to adverse market
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conditions, economic, political and other conditions. In this regard, the Fund may hold cash or cash equivalent
instruments as the Fund’s only asset.
Investment Policy
The Fund endeavours to create a prudent mix of primarily equities and fixed income securities which is in line
with the Fund’s objective.
Policy and Strategy on Listed and Unlisted Securities
AMBBTF would focus on attaining a balance between long-term income and capital growth. It would invest
partly in equities and partly in fixed income securities. AMBBTF’s strategy provides a careful selection of
quality listed equities and listed/unlisted bonds, carrying at least BBB rating by RAM or an equivalent rating by
MARC.
The investment process for unlisted securities is similar to the process used for the listed securities. Decisions
will be made after thorough assessment of the companies, using in-house fundamental research supported by
external research and companies prospectuses.
Investment in securities involves an analysis of the general economic and market conditions. With an approach
that considers the risk return tradeoff, AMBBTF focuses on securities that would deliver favorable return in
light of the risks.
AMBBTF aims to increase long term returns on stocks by focusing on corporations with good earnings track
record, sound management and having reasonable growth potential.
The Fund invests in a variety of fixed income instruments, ranging from high quality, short-term government
and corporate debt securities and money market instruments to longer dated government and corporate
bonds. It considers obligations with a more favorable or improving credit or industry outlook that provide the
potential for capital appreciation.
Policy on Active and Frequent Trading of Securities
The Fund is actively managed and the frequency of trading of securities is dependent on the objective of the
Fund and available market opportunities.
Investment Strategy/Investment Mechanism
Equities
AMBBTF invests in potentially high yielding blue-chip stocks, aiming to increase long-term returns by focusing
on corporations with good earnings track records, sound management and strong growth potential.
Fixed Income
AMBBTF invests in a variety of fixed interest investments. They range from investments in high quality, shortterm government and corporate debt securities and money market instruments to longer-dated government
and corporate bonds. AMBBTF balances its investments between potentially high yielding share investments
and lower risk fixed interest investments. Specific investments are chosen, mainly those that offer good
potential for income and growth. The External Investment Manager will change the Fund’s asset allocation mix
depending on the prevailing economic conditions and market outlook for both equity and bonds. This strategy
aims to reduce risk and achieve consistency of returns.
Asset Allocation
• Minimum 20% Maximum 60% in equities
• Minimum 20% Maximum 60% in fixed income securities
• Minimum 2% in liquid assets
Benchmark
The performance of AMBBTF will be benchmarked against 50% of the performance of the FBM KLCI and 50%
of the Quantshop MGS Index. These are obtainable from the Bursa Malaysia website and the Quantshop
website at www.quantshop.com respectively.
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AMB Income Trust Fund
Type of Fund
Income Fund
Category of Fund
Bond Fund
Investment Philosophy
AMBITF is an income-oriented fund, which invests primarily in a portfolio of fixed income securities. It is
structured to earn income on a regular basis and to achieve capital appreciation through interest rate
fluctuations. The Unit price will change to reflect movements in the value of the Fund’s assets.
Investment Objective
To maximise returns over the medium term (over 2 years) and while at the same time offer stability of capital
and regular income.
Any material change to the investment objective of the Fund would require Unit Holders’ approval.
Approved Fund Size of AMBITF
The approved fund size of AMBITF is 600 million Units.
Investors’ Profile
Fixed income investments are an essential part of any diversified investment portfolio. AMBITF is an
appropriate investment vehicle for investors looking for a medium term investment with regular consistent
income and some potential for moderate capital growth.
Benefits for Investors
Generally, returns from fixed income investments are lower than shares over the medium to longer term.
Because income streams from fixed income securities are generally secure, income as a proportion of
AMBITF’s total return is usually high, especially when interest rates are high.
Specific Benefits of Investing in AMBITF
Regular Savings Plan
You have the opportunity to invest through standing instruction. This plan makes regular savings easy and
allows you to arrange transfers from your bank account to AMBITF.
Affordability
Investors can invest with just RM1,000 as a minimum initial investment and subsequent investments can be
made with a minimum of RM100.
Accessibility
Investors can easily access any Distribution Branch to perform any enquiry or transaction.
Potential Risks Associated with AMBITF
Market Risk
This is fluctuation in the market performance due to factors such as fluctuation in interest rates, and changes
in economic climate, political and social environments that will affect the stock or bond market as a whole.
They will also affect the value of investment either in a positive or negative way.
Credit/Default Risk
AMBITF invests in fixed income securities, so its portfolio is subject to credit risk. This is the risk that the issuer
of the security may default and not be able to make timely principal and interest payments on the security.
The lower-rated corporate debt securities will normally have greater risk of defaults.
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Interest Rate Risk
Fixed income securities are particularly sensitive to movements in interest rates. When interest rates rise, the
value of fixed income securities falls and vice versa, thus affecting the NAV of the Fund. Furthermore, fixed
income securities with longer maturity and lower yield coupon rates are more susceptible to interest rate
movements.
Liquidity Risk
Liquidity risk is the risk that the security/instrument invested in cannot be readily sold and converted into cash.
This can occur when trading volume for the security is low and/or when there is a lack of demand for the
security. In managing liquidity risk, the Fund will limit its exposure to instruments, which are deemed less
liquid.
Operational Risk is the risk of loss to the unit holder arising from inadequacies in, or failures of, our internal
procedures and controls for monitoring and quantifying the risks and contractual obligations associated with
investments in AMBITF.
Control of Risk
The External Investment Manager will take reasonable steps to ensure that the above potential risks are
managed by:
a) actively monitoring the Fund’s asset allocation to ensure minimum impact from any adverse market
movements. They will ensure that the fixed income securities are carefully selected through company
visits, fundamental analysis and portfolio diversification. The EIM will also focus on the credit quality of the
fixed income securities, which must be of good investment grade of at least BBB rating or equivalent by
RAM, MARC or any other similar rating establishment.
b) investing the Fund over a wide range of fixed income securities of different companies which provides
diversification across a number of sectors and industries, minimising the risk not only of any single
company’s securities becoming worthless, but also of all holdings suffering uniformly adverse business
conditions.
c) lengthening or shortening the Fund’s average maturity period of the fixed income investments (within the
Fund’s objective) in anticipation of changing interest rates.
d) selecting investments that are bank or government guaranteed or secured against assets to mitigate
default risk.
The EIM will seek to reduce all risks associated with the Fund by virtue of its experience, the analytical process
adopted and by structuring a broadly diversified investment pool.
Temporary Defensive Position
When deemed appropriate and for the benefit of the Fund, the External Investment Manager may take
temporary defensive positions in dealing with adverse market, economic, political and other conditions, that
maybe inconsistent with the Fund’s principal strategy. In this regard, the Fund may hold cash or cash
equivalent instruments as the Fund’s only asset.
Investment Policy
The Fund invests in fixed income securities and money market instruments to meet its objectives of providing
a steady stream of interest income and potential long-term capital gains. Its fixed income securities
investments comprise government bonds, private debt securities, which are rated BBB or higher by RAM and
MARC, and money market instruments, which will ensure a regular income yield to AMBITF.
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Master Prospectus 2010/2011
Policy and Strategy on Listed and Unlisted Securities
AMBITF is to concentrate on investing in quality listed/unlisted debt securities, which provide good yields, for
the medium to long-term period. The portfolio aims at preserving the principle investment whilst achieving
returns better than the prevailing fixed deposit interest rates on an annualized basis, at an acceptable level
of risk. The portfolio shall invest in investment grade debt securities that are deemed to be fundamentally
sound. In addition, the portfolio also concentrates on securities that have attractive yields and trading
opportunities.
The investment process for unlisted securities is similar to the process used for listed securities. Decisions will
be made after thorough assessment on companies, using in-house fundamental research supported by
external research and companies prospectuses.
Investments shall be made in fixed income securities with minimum credit ratings of P2 or MARC2 for short
term papers or A3/A- for long term papers by RAM or MARC. The External Investment Manager 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 superior
selection that compliments the objective of the portfolio. The filtration processes include debt rating,
financial ratio analysis, management quality assessment and structure of a particular instrument.
Investment Strategy/Investment Mechanism
AMBITF’s investment strategy is to create a prudent mix in its portfolio to meet its investment objective and
to provide professional assessment of investment prospects by its External Investment Manager in line with
the economic outlook. Longer term fixed income securities such as bonds are also attractive because the rate
of interest payable is generally higher than that available from cash or short-term deposits. Long term bonds
(5 to 10 years) will form the core holdings of the portfolio due to its higher returns and thus will be held for a
considerable period of time. The size of this core holdings may vary from time to time to accommodate
changing market conditions, but is generally expected to be around 60-75% of the portfolio.
The portfolio also will consists of short term bonds (1 month to 1 year duration) which will provide liquidity
for repurchases as well as opportunity for the External Investment Manager to make tactical switch in view
of changing interest rate and market conditions.
The asset allocation between the longer and shorter-term maturities of the fixed income securities are
subject to change, depending on the prevailing economic and market conditions.
In addition investment consideration will also be given on securities that are undervalued relative to their
ratings, potential credit upgrade candidates, and situational issues with potential for improvement in the
credit quality. Furthermore movements in the yield curve may uncover further opportunities. The External
Investment Manager will also seek to diversify the portfolio across the sectors and issuers (to reduce sector
and credit risk) and across duration (to reduce price risk).
Policy on Active and Frequent Trading of Securities
The Fund is actively managed and the frequency of trading of securities is dependent on the objective of the
Fund and available market opportunities.
Asset Allocation
• Minimum 40% Maximum 98% in fixed income securities
• Maximum 60% in cash and money market
Benchmark
The performance of AMBITF will be benchmarked against 12-month fixed deposit rate from commercial banks,
which is obtainable from the Bank Negara website.
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Master Prospectus 2010/2011
AMB Index-Linked Trust Fund
Type of Fund
Index Fund
Category of Fund
Equity Fund
Investment Philosophy
AMBILTF is an open-ended indexed Fund that invests in the FBM KLCI component stocks that will closely mirror
the FBM KLCI movements.
Investment Objective
To achieve an investment result that tracks the performance of the benchmark FBM KLCI.
Any material change to the investment objective of the Fund would require Unit Holders’ approval.
Approved Fund Size of AMBILTF
The approved fund size for AMBILTF is 400 million Units.
Investors’ Profile
The Fund is expected to appeal to individuals or institutions which desire returns that are consistent with the
performance of the FBM KLCI. As such, investors of this Fund are expected to possess a medium to high-risk
tolerance and seeking a long-term investment horizon to withstand the business cycles capital markets are
exposed to.
Benefits for Investors
The Fund is an affordable avenue for investors to have an indirect participation in the Malaysian equity
markets through ownership of component stocks that make up the FBM KLCI. As the Fund’s investment results
closely correspond to the FBM KLCI, investors are capable of gauging their investment performance with
relative ease. Since AMBILTF adopts a passive management philosophy, the fees levied for managing the Fund
are lower when compared to an actively managed fund. This allows the AMBILTF to be both an attractive and
economical equity investment alternative.
Specific Benefits of Investing in AMBILTF
Regular Savings Plan
You have the opportunity to invest through standing instruction. This plan makes regular savings easy and
allows you to arrange transfers from your bank account to AMBILTF.
Affordability
Investors can invest with just RM500 as a minimum initial investment and subsequent investments can be
made with a minimum of RM100.
Accessibility
Investors can easily access any Distribution Branch to perform any enquiry or transaction.
Potential Risks Associated with AMBILTF
Due to the Fund’s passive management philosophy, investors should understand that while it is possible to
obtain returns during a market upturn, it is equally likely that losses can be incurred during its downturn. This
is due to the Fund’s high concentration of investments in the equity markets.
Market Risk
This is fluctuation in the market performance due to factors such as fluctuation in interest rates, and changes
in economic climate, political and social environments that will affect the stock market as a whole.
Individual Stock Risk
AMBILTF is subject to the volatility of price 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
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Master Prospectus 2010/2011
according to changes in the market value of the investments. The fluctuations can be significant in the shortterm. This accounts for the market risk when investing in this Fund. However, this impact is minimised through
portfolio diversification.
Liquidity Risk
Liquidity risk is the risk that the security/instrument invested in cannot be readily sold and converted into cash.
This can occur when trading volume for the security is low and/or when there is a lack of demand for the
security. In managing liquidity risk, the Fund will limit its exposure to instruments, which are deemed less
liquid.
Operational Risk is the risk of loss arising from inadequacies in, or failures of, our internal procedures and
controls for monitoring and quantifying the risks and contractual obligations associated with investments in
AMBILTF.
Control of Risk
The EIM will take reasonable steps to ensure that the above potential risks are managed by:
(a)
actively monitoring the Fund’s asset allocation to ensure minimum impact from any adverse market
movements. They will ensure that the equities are carefully selected through site visits, fundamental
analysis and portfolio diversification.
(b)
investing the Fund over a wide range of equities of different companies which provides diversification
across a number of sectors and industries, minimising the risk not only of any single company’s
securities becoming worthless, but also of all holdings suffering uniformly adverse business conditions.
The External Investment Manager will seek to reduce all these risks associated with the Fund by virtue
of its experience, the analytical process and by structuring a broadly diversified investment pool.
Temporary Defensive Position
By virtue that the Fund is index tracking in nature, the Fund will continue to be fully invested in equities, even
in adverse market conditions. The Fund Manager shall not at any time, actively or deliberately attempt to
outperform the market by reducing its exposure in equities and increase cash, or vice versa.
Investment Policy
The Fund invests primarily in securities in the FBM KLCI, which will enable it to track the movement of the FBM
KLCI. As such, investments consist of the FBM KLCI component stocks that will closely mirror the FBM KLCI’s
performance. The investment horizon is medium term with an aim to benefit from capital appreciation as the
Malaysian economy recovers. The NAV of the Fund will therefore, fluctuate with the FBM KLCI.
Policy and Strategy on Listed and Unlisted Securities
AMBILTF invests primarily in securities listed on the Bursa Malaysia, which will enable it to track the movement
of the FBM KLCI. As such investments consist of the FBM KLCI component stocks that will closely mirror the
FBM KLCI’s performance. The investment horizon is medium term with the view to benefit from capital
appreciation as the Malaysian economy recovers. The NAV of the Fund will therefore fluctuate with the FBM
KLCI. It is the Fund’s policy to remain fully invested at all times to minimise the tracking error. The Fund under
normal circumstances will be up to 99.5% invested. However, there are periods when the Fund needs to
liquidate its holding of equities to meet repurchase by Unit Holders. The heavy investment in equities is to
ensure that the performance of the Fund reflects or mirrors that of the index as closely as possible.
The investment process for unlisted securities is similar to the process used for the listed securities. Decisions
will be made after thorough assessment on the companies, using in-house fundamental research supported by
external research and companies’ prospectuses.
Investment Strategy and how the representative sample is constituted
It is the Fund’s policy to remain fully invested at all times. The Fund under normal circumstances will be up to
99.5% invested. However, there are periods when the Fund needs to liquidate its holding of equities to meet
repurchase by Unit Holders. The Fund’s investment strategy is to ensure that the performance of the Fund
reflects or mirrors that of the index as closely as possible.
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Master Prospectus 2010/2011
The Fund solely invests in a representative sample of the underlying component stocks of the FBM KLCI. The
representative sample consist of only 26 stocks compared to 30 stocks in the underlying FBM KLCI. The other
four stocks that are not included are gaming stocks. The representative sample is derived and calculated by
using an optimization model to recalculate and rebalance the Fund accordingly, taking into account several
factors including the prevailing beta of the stock and volatility amongst others.
Policy on Active and Frequent Trading of Securities
The index tracking fund is based on a statistical sample portfolio model of 26 stocks (excluding gaming stocks),
of which the index weights of the benchmark 30 stocks are calculated and rebalanced/reweighted on an equal
weighting basis. The result of such sampling based on a smaller number of stocks would inevitably cause the
individual stocks in the tracker fund to hold a higher weighting than its corresponding index weighting. This
method is equivalent to the traditional indexing method, whereby the tracker will buy into all the securities in
the target benchmark at the same target ratio, albeit a small reweighting is necessary to accommodate the
exclusion of the gaming stocks from the fund.
The underlying index
The Fund is designed to track or replicate the performance of the underlying FBM KLCI. Excluding the cash
portion, the Fund focuses on 7 sectors, namely consumer goods, consumer services, financials, industrials, oil
& gas, telecommunications and utilities.
Circumstances that lead to tracking error and strategies to minimise the error.
Tracking error happens when the replicating portfolio does not perfectly match the performance of the
underlying index (FBM KLCI). Transaction costs and fewer numbers of stocks in the portfolio (compared to
investment in all of the component stocks) are the constant factors that lead to the tracking error. The former
is manageable as the Fund has lower trading costs given its passive characteristics. As for the latter, tracking
error happens when price of the sample stocks fluctuates sharper than the FBM KLCI. However, tracking error
is minimised when balancing of the Fund is undertaken to ensure close tracking of the Fund to the FBM KLCI.
A brief description of the index methodology/rules
The FBM KLCI methodology ranks companies according to its full market capitalisation. The companies are
tested for minimum free float and liquidity requirements. The selection of the index constituents is then based
on the eligibility following the FTSE Bursa Malaysia Ground Rules which are;
Free Float Methodology
Free float is share capital freely available for trading. Under the free float banding, companies must have at
least 15% of free float to be eligible for inclusion.
Share in Issue Methodology
All classes of ordinary shares in issue are eligible for inclusion in the FBM KLCI subject to conforming to all
other rules of eligibility, free float and liquidity outlined in the FTSE Bursa Malaysia Ground Rules.
Liquidity Rule
Only liquid companies are eligible to the FBM KLCI. Securities must have a turnover of at least 10% of the
shares in issues, after the application of any free float restrictions, in the twelve months prior to the semiannual review in June and December by the FTSE Bursa Malaysia Advisory Committee to be eligible for
inclusion in the indices.
Review Process
The FBM KLCI constituents are reviewed semi-annually in June and December and reviewed by the FTSE Bursa
Malaysia Index Advisory Committee.
Index Calculation
The FBM KLCI is calculated in real time during Bursa Malaysia trading days. The index is calculated and
disseminated on a real time basis every 15 seconds which tracks the market pulse closely and more efficiently.
Industrial Classification Benchmark (ICB)
The classification of the constituent of FBM KLCI is determined using the Industry Classification Benchmark
(ICB). The consistent classification allows comparisons across region and sectors.
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Master Prospectus 2010/2011
Investors may obtain the latest index information and other important news of the index via
www.bursamalaysia.com.my and www.ftse.com.
Circumstances Which May Affect the Accuracy and Completeness in the Calculation of the Index
The FBM KLCI is calculated by FTSE based on its own specific calculation methodology and rules. Therefore, any
error or non-adherence to these calculation methodology and rules may affect the accuracy and / or
completeness of the FBM KLCI computation. Investors may obtain more information about the FBM KLCI’s
calculation methodology and rules from Bursa Malaysia’s website : www.bursamalaysia.com.
Policy on re-balancing the portfolio.
Rebalancing of the portfolio will only be carried out when there is huge withdrawal or injection or when the
tracking error is off track.
Weightings of the top 10 component stocks of the underlying index as at LPD
1.
Public Bank Bhd
10.24%
2.
Malayan Banking Bhd
9.80%
3.
CIMB
9.35%
4.
Sime Darby Bhd
8.37%
5.
Tenaga Nasional Bhd
6.64%
6.
Axiata Group Bhd
6.43%
7.
IOI Corporation Bhd
6.10%
8.
MISC Bhd
3.75%
9.
Digi
3.43%
10. Maxis
2.84%
Weightings of the top 10 component stocks in the representative sample as at LPD (Based on NAV)
1.
Public Bank Bhd
11.24%
2.
Malayan Banking Bhd
10.75%
3.
CIMB-Group Holdings Bhd
10.26%
4.
Sime Darby Bhd
9.18%
5.
Tenaga Nasional Bhd
7.29%
6.
Axiata Group Bhd
7.06%
7.
IOI Corporation Bhd
6.70%
8.
MISC Bhd
4.11%
9.
Digi.Com Bhd
3.77%
10. Maxis Bhd
3.12%
There is no guarantee or assurance of exact or identical replication at any time of the performance of the FBM
KLCI. The index composition may change and component securities of the underlying index may be delisted.
Asset Allocation
• Minimum 90.0 % Maximum 99.5% in equities
• Minimum 0.5% Maximum 10.0% in liquid assets
This investment portfolio enables the reduction in tracking error for the AMBILTF. Any excess in liquidity
should be regularized within a period of 1 month. However, the minimum level of liquid assets to be
maintained may be reviewed from time to time with the approval of the Investment Committee upon
consultation with the Trustee.
Benchmark
The performance of AMBILTF will be benchmarked against the FBM KLCI return. The latest index information
and other news of the index may be obtained at the Bursa Malaysia website.
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Master Prospectus 2010/2011
AMB SmallCap Trust Fund
Type of Fund
Growth Fund
Category of Fund
Equity Fund
Investment Philosophy
AMBSCTF will invest in a diversified portfolio of stocks, in companies which operate in high growth sectors,
hence have the potential to register high growth in earnings per share. A systematic and in-depth fundamental
analysis is applied for the selection of stocks and the monitoring thereafter.
Investment Objective
To achieve medium to long-term capital growth by primarily investing into securities of small and medium
sized companies, listed on the Bursa Securities’s Main Market, ACE Market and/or any other boards approved
by the SC with market capitalisation of not more than RM750 million which have the potential for capital
appreciation over the medium to long term (2 to 5 years).
Any material change to the investment objective of the Fund would require Unit Holder’s approval.
Approved Fund Size of AMBSCTF
The approved fund size for AMBSCTF is 600 million Units.
Investors’ Profile
The Fund is suitable for investors with the following profile: • Seeking medium to long term capital growth through investment in small to medium sized companies;
• Willing to accept higher level of risk in order to obtain higher growth of their capital.
Benefits for Investors
AMBSCTF offers a higher potential for capital growth relative to the underlying market given its low base and
strong growth potential. The specific risks associated with the Fund can be reduced and mitigated through
effective sectors and stocks diversification.
Specific Benefits of Investing in AMBSCTF
Free Insurance Protection Coverage for AMBSCTF
Eligible Unit Holders (natural persons) of AMBSCTF will be given free GPA insurance coverage. Unit Holders
holding a minimum of 2,000 Units and above will automatically be covered under the GPA insurance coverage.
The sum covered would be RM0.50 for every Unit held subject to a minimum investment of 2,000 Units and
maximum coverage of RM200,000. The GPA insurance coverage covers:
(i) Death due to accidental causes only;
(ii) TPD due to accidental causes; and
(iii) Funeral expenses as follows:
Funeral Expenses
Units
2,000 to 49,999
RM1,000
50,000 and above
RM2,000
While the policy is in force, the amount of coverage shall be based on the amount of Units held at the time of
accident which led to claim. Eligible Unit Holders must be aged between 18 to 69 years old. The GPA coverage
ceases automatically when you attain the age of 70 years old. Eligible principal Unit Holder and jointholder(s)
will be covered under the GPA insurance coverage but the sum covered will be shared equally.
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Master Prospectus 2010/2011
Regular Savings Plan
You have the opportunity to invest through standing instruction. This plan makes regular savings easy and
allows you to arrange transfers from your bank account to AMBSCTF.
Affordability
Investors can invest with just RM500 as a minimum initial investment and subsequent investments can be
made with a minimum of RM100.
Accessibility
Investors can easily access any Distribution Branch to perform any enquiry or transaction.
Potential Risks Associated with AMBSCTF
Market Risk
This is fluctuation in the market performance due to factors such as fluctuation in interest rates, and changes
in economic climate, political and social environments that will affect the stock market as a whole. The stocks
of small cap companies may be traded less actively than those of larger cap companies. As a result small cap
stocks tend to fluctuate relatively more in reaction to a volatile market. Small cap companies may have limited
financial resources compared to larger cap companies, which tend to make them more vulnerable to market
and economic downturns.
Individual Stock Risk
AMBSCTF is subject to the volatility of price 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 shortterm. This accounts for the market risk when investing in this Fund. However, this impact is minimised through
portfolio diversification.
Liquidity Risk
Liquidity risk is the risk that the security/instrument invested in cannot be readily sold and converted into cash.
This can occur when trading volume for the security is low and/or when there is a lack of demand for the
security. In managing liquidity risk, the Fund will limit its exposure to instruments, which are deemed less
liquid.
Operational Risk is the risk of loss to unit holder arising from inadequacies in, or failures of, our internal
procedures and controls for monitoring and quantifying the risks and contractual obligations associated with
investments in AMBSCTF.
Control of Risk
The EIM will take reasonable steps to ensure that the above potential risks are managed by:
(a)
actively monitoring the Fund’s asset allocation to ensure minimum impact from any adverse market
movements. They will ensure that the equities are carefully selected through site visits, fundamental
analysis and portfolio diversification.
(b)
investing the Fund over a wide range of equities of different companies which provides diversification
across a number of sectors and industries, minimising the risk not only of any single company’s
securities becoming worthless, but also of all holdings suffering uniformly adverse business conditions.
The External Investment Manager will seek to reduce all these risks associated with the Fund by virtue
of its experience, the analytical process and by structuring a broadly diversified investment pool.
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Master Prospectus 2010/2011
Temporary Defensive Position
When deemed appropriate and for the benefit of the Fund, the External Investment Manager may take
temporary defensive positions in dealing with adverse market, economic, political and other conditions, that
maybe inconsistent with the Fund’s principal strategy. In this regard, the Fund may hold cash or cash
equivalent instruments as the Fund’s only asset.
Investment Policy & Strategy on Listed and Unlisted Securities
The Fund is allowed to invest in securities of companies which have obtained approval from the relevant
authorities for listing on either the Main Market of Bursa Malaysia (including ACE Market). The market
capitalisations of the companies are calculated by multiplying the offer price and the enlarged share capital.
The Fund may consider investment in unlisted equities. However, investment in unlisted equities is limited to a
maximum of 10% of the Net Asset Value of the Fund. The investment process of unlisted securities is similar to
the process used for listed securities.
Investment Strategy/Investment Mechanism
The Fund invests primarily in selected small and medium sized companies listed on the Main Market of the
Bursa Malaysia (including ACE Market) with market capitalization of not more than RM750 million which have
the potential for capital appreciation over the medium to long term.
Criteria for selection include companies with sound management which operate in the high growth sector,
and/or those expected to register high earnings per share growth. The Fund may also invest in companies with
market capitalization exceeding RM750 million in order to increase the benefit of diversification and enhance
the stability of the Fund. Emphasis is given to companies with reasonably good earnings, growth prospects in
the medium to longer term horizon, quality management and good corporate governance.
The Fund employs an active investment strategy and periodical review of the asset allocation is made in
response to changes in economic fundamentals, interest rates and stock market conditions. In equity
investment, to seek out-performance caused by market inefficiencies by identifying undervalued investments
whose potentials are yet to be realized.
Policy on Active and Frequent Trading of Securities
The Fund is actively managed and the frequency of trading of securities is dependent on the objective of the
Fund and available market opportunities.
Asset Allocation
• Minimum 40% Maximum 95% in stocks and shares of small and medium cap companies.
• Minimum 5% Maximum 60% in liquid assets and short-term money market investments.
Benchmark
The performance of AMBSCTF will be benchmarked against 60% of the performance of the FBM SmallCap
Index, 35% of the performance of the FBM Top 100 Index and 5% of the 1-month fixed deposit rate of
commercial banks, which are obtainable from the Bursa Malaysia website and the Bank Negara website
respectively.
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Master Prospectus 2010/2011
AMB Enhanced Bond Trust Fund
Type of Fund
Income and Growth Fund
Category of Fund
Bond Fund
Investment Philosophy
AMBEBTF will invest in a diversified portfolio of fixed income securities, with a view of enhancing the overall
Fund’s return through equity market participation in selected stocks listed on the Bursa Malaysia.
Investment Objective
The objective of the Fund is to provide investors with a stable income stream and an opportunity for capital
appreciation over the medium to long term horizon through investments in securities issues by corporations,
governmental and/or statutory bodies as provided in the Prospectus.
Any material change to the investment objective of the Fund would require Unit Holders’ approval.
Approved Fund Size of AMBEBTF
The approved fund size of AMBEBTF is 500 million Units.
Investors’ Profile
The Fund is suitable for investors with the following profile: • Seeking a conservative investment approach but willing to exploit opportunities presented in the capital
markets; and
• Possessing an investment in medium to long term horizon.
Benefits for Investors
Access to investment
The Fund seeks to achieve its objective through a policy of diversified investment in convertible debt
securities, redeemable debt securities, government backed bonds/securities, rated private debt securities,
money market instruments and securities listed on the Bursa Securities. Given the asset mix, the Fund is
designed to provide investors with affordable access to a portfolio of fixed income securities with an equity
exposure to improve yields. The Fund is primarily suited to investors who prefer more stable investment
returns than those provided by equity funds and those who are conservative with a need to receive steady
income.
Initial and subsequent outlay
Only a small initial outlay and subsequent investment is required to build a well-diversified bond portfolio as
compared to investing in the aforesaid instruments directly.
Other Benefits
Additionally, the Fund seeks to enhance the returns of the portfolio through participation in equities market in
selected stocks listed on the Bursa Securities. The equity investment will also help in the Fund’s diversification
and reduce the overall portfolio risk of the Fund.
Specific Benefits of Investing in AMBEBTF
Regular Savings Plan
You have the opportunity to invest through standing instruction. This plan makes regular savings easy and
allows you to arrange transfers from your bank account to invest in AMBEBTF.
Affordability
Investors can invest with just RM1,000 as a minimum initial investment and subsequent investments can be
made with a minimum of RM500.
Accessibility
Investors can easily access any Distribution Branch to perform any enquiry or transaction.
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Master Prospectus 2010/2011
Potential Risks Associated with AMBEBTF
Market Risk
This is fluctuation in the market performance due to factors such as fluctuation in interest rates, and changes
in economic climate, political and social environments that will affect the stock or bond market as a whole.
They will also affect the value of investment either in a positive or negative way.
Individual Stock Risk
AMBEBTF 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 shortterm. This accounts for the market risk when investing in this Fund. However, this impact is minimised through
portfolio diversification.
Credit/Default Risk
AMBEBTF invests in fixed income securities, so its portfolio is subject to credit risk. This is the risk that the
issuer of the security may default and not be able to make timely principal and interest payments on the
security. The lower-rated corporate debt securities will normally have greater risk of defaults.
Interest Rate Risk
Fixed income securities are particularly sensitive to movements in interest rates. When interest rates rise, the
value of fixed income securities falls and vice versa, thus affecting the NAV of the Fund. Furthermore, fixed
income securities with longer maturity and lower yield coupon rates are more susceptible to interest rate
movements.
Liquidity Risk
Liquidity risk is the risk that the security/instrument invested in cannot be readily sold and converted into cash.
This can occur when trading volume for the security is low and/or when there is a lack of demand for the
security. In managing liquidity risk, the Fund will limit its exposure to instruments, which are deemed less
liquid.
Operational Risk is the risk of loss to the unit holder arising from inadequacies in, or failures of, our internal
procedures and controls for monitoring and quantifying the risks and contractual obligations associated with
investments in AMBEBTF.
Control of Risk
The EIM will take reasonable steps to ensure that the above potential risks are managed by:
a) actively monitoring the Fund’s asset allocation to ensure minimum impact from any adverse market
movements. They will ensure that the fixed income securities and equities are carefully selected through
company visits, fundamental analysis and portfolio diversification. In the case of fixed income securities,
the EIM will also focus on the credit quality of the fixed income securities, which must be of good
investment grade of at least BBB rating or equivalent by RAM, MARC or any other similar rating
establishment.
b) investing the Fund over a wide range of fixed income securities and equities of different companies which
provides diversification across a number of sectors and industries, minimising the risk not only of any single
company’s securities becoming worthless, but also of all holdings suffering uniformly adverse business
conditions.
c) lengthening or shortening the Fund’s average maturity period of the fixed income investments (within the
Fund’s objective) in anticipation of changing interest rates.
d) selecting investments that are bank or government guaranteed or secured against assets to mitigate
default risk.
The EIM will seek to reduce all risks associated with the Fund by virtue of its experience, the analytical process
adopted and by structuring a broadly diversified investment pool.
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Temporary Defensive Position
When deemed appropriate and for the benefit of the Fund, the EIM may take temporary defensive positions in
dealing with adverse market, economical, 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 asset.
Investment Policy
AMBEBTF is a bond fund that offers investors an opportunity to invest in fixed income securities with a view to
enhance the overall Fund’s return through investment in equities listed on the Bursa Malaysia. The Fund seeks
to achieve its objective through a policy of diversified investment in convertible debt securities, redeemable
debt securities, government backed bonds/securities, rated private debt securities, money market instruments
and equities.
Unlike the present money market and bond funds, which primarily invest in such instruments only, the
AMBEBTF widens its asset universe by participating in a minimum of 85% of its Net Asset Value in fixed income
securities and money market and no more than 15% in equities listed on the Bursa Malaysia. The appointed
External Investment Manager shall capitalise on the stringent value investment methodology to select such
securities for inclusion in its portfolio.
Investment Strategy/Investment Mechanism
Fixed Income Investments
AMBEBTF’s approach is one that recognised the need to exploit anomalies and opportunities as they arise. At
the same time, AMBEBTF also seeks to optimise returns (based on our interest rate outlook) at minimal risk;
hence, a well diversified portfolio with stringent credit analysis will be adopted in the portfolio.
Equity Investments
In managing the equity portion, AMBEBTF combines a top-down asset and sector allocation process with a
bottom-up stock selection process. The asset allocation decision is made after a review of macroeconomic
trends inside and outside Malaysia. In particular, analysis will be conducted on the direction of GDP growth,
interest rates, inflation, currencies and government policies. The Fund Manager will then assess the impact of
corporate earnings and determine if there are any predictable trends. These trends form the basis for sector
selection. Stock selection is based on the growth style of equity investing. As such, the criteria would include
improving fundamentals and growth, at reasonable valuations. Stock valuations considered are earnings per
share growth rate, return on equity, price earnings ratio and net tangible assets multiples.
Policy on Active and Frequent Trading of Securities
The Fund is actively managed and the frequency of trading of securities is dependent on the objective of the
Fund and available market opportunities.
Asset Allocation
•
•
Minimum 85% in fixed income securities and money market
Maximum 15% in equities listed on the Bursa Malaysia
Benchmark
The performance of AMBEBTF will be benchmarked against 100% of the Quantshop MGS Index, which is
obtainable from the Quantshop website at www.quantshop.com.
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AMB Ethical Trust Fund
Type of Fund
Income and Capital Growth Fund
Category of Fund
Equity Fund
Investment Philosophy
We believe superior long-term investment performance can be achieved by exploiting inefficiencies in capital
markets through rigorous and intensive research within a disciplined investment process.
Investment Objective
The Fund’s primary objective is to provide investors with income and capital growth for medium to long term
through investments that comply with ethical principles as defined in the Fund..
Any material change to the investment objective of the Fund would require Unit Holders’ approval.
Approved Fund Size of AMBETF
The approved fund size for AMBETF is 300 million Units.
Investors’ Profile
• Suitable for individual or institutional investors who desires income and capital returns from the equity and
bond markets;
• Suitable for investors who would like to channel their resources to companies that demonstrate socially
responsible practices relating to the environment and community; and
• Suitable for those who are seeking for a long term investment horizon exceeding 5 years.
Benefits for Investors
AMBETF is essentially a socially responsible Fund, which caters for Malaysians who increasingly want a say in
how their money is invested. The Fund accomplishes this by channeling pooled funds to companies that are
befitting to the agreed upon ethical standards that are defined in the Fund.
The Fund represents an affordable investment tool and also rewards companies that are viewed as performing
an invaluable service to Malaysia through its ethical activities.
Specific Benefits of Investing in AMBETF
Free Insurance Protection Coverage for AMBETF
Eligible Unit Holders (natural persons) of AMBETF will be given free GPA insurance coverage. Unit Holders
holding a minimum of 2,000 Units and above will automatically be covered under the GPA insurance coverage.
The sum covered would be RM0.50 for every Unit held subject to a minimum investment of 2,000 Units and
maximum coverage of RM200,000.
The GPA insurance coverage covers:
(i) Death due to accidental causes only;
(ii) TPD due to accidental causes; and
(iii) Funeral expenses as follows:
Units
2,000 to 49,999
50,000 and above
Funeral Expenses
RM1,000
RM2,000
While the policy is in force, the amount of coverage shall be based on the amount of Units held at the time of
accident which led to claim.
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Eligible Unit Holders must be aged between 18 to 69 years old. The GPA coverage ceases automatically when
you attain the age of 70 years old. Eligible principal Unit Holder and jointholder(s) will be covered under the
GPA insurance coverage but the sum covered will be shared equally.
Regular Savings Plan
You have the opportunity to invest through standing instruction. This plan makes regular savings easy and
allows you to arrange transfers from your bank account to AMBETF.
Affordability
Investors can invest with just RM500 as a minimum initial investment and subsequent investments can be
made with a minimum of RM100.
Accessibility
Investors can easily access any Distribution Branch to perform any enquiry or transaction.
Potential Risks Associated with AMBETF
As the Fund invests only in securities of companies which comply with the ethical principles, certain securities
which may provide better growth potential but do not comply with the ethical principles are therefore
excluded in the portfolio. Hence, the returns of the Fund may be limited when compared to a Fund that has no
investment restrictions. Other risks associated with the Fund are described below: Market Risk
This is fluctuation in the market performance due to factors such as fluctuation in interest rates, and changes
in economic climate, political and social environments that will affect the stock or bond market as a whole.
They will also affect the value of investment either in a positive or negative way.
Individual Stock Risk
AMBETF 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 shortterm. This accounts for the market risk when investing in this Fund. However, this impact is minimised through
portfolio diversification.
Credit/Default Risk
AMBETF invests in fixed income securities, so its portfolio is subject to credit risk. This is the risk that the issuer
of the security may default and not be able to make timely principal and interest payments on the security.
The lower-rated corporate debt securities will normally have greater risk of defaults.
Interest Rate Risk
Fixed income securities are particularly sensitive to movements in interest rates. When interest rates rise, the
value of fixed income securities falls and vice versa, thus affecting the NAV of the Fund. Furthermore, fixed
income securities with longer maturity and lower yield coupon rates are more susceptible to interest rate
movements.
Liquidity Risk
Liquidity risk is the risk that the security/instrument invested in cannot be readily sold and converted into cash.
This can occur when trading volume for the security is low and/or when there is a lack of demand for the
security. In managing liquidity risk, the Fund will limit its exposure to instruments, which are deemed less
liquid.
Operational Risk is the risk of loss to the unit holder arising from inadequacies in, or failures of, our internal
procedures and controls for monitoring and quantifying the risks and contractual obligations associated with
investments in AMBETF.
Control of Risk
The EIM will take reasonable steps to ensure that the above potential risks are managed by:
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a) actively monitoring the Fund’s asset allocation to ensure minimum impact from any adverse market
movements. They will ensure that the fixed income securities and equities are carefully selected through
company visits, fundamental analysis and portfolio diversification. In the case of fixed income securities,
the EIM will also focus on the credit quality of the fixed income securities, which must be of good
investment grade of at least BBB rating or equivalent by RAM, MARC or any other similar rating
establishment.
b) investing the Fund over a wide range of fixed income securities and equities of different companies which
provides diversification across a number of sectors and industries, minimising the risk not only of any single
company’s securities becoming worthless, but also of all holdings suffering uniformly adverse business
conditions.
c) lengthening or shortening the Fund’s average maturity period of the fixed income investments (within the
Fund’s objective) in anticipation of changing interest rates.
d) selecting investments that are bank or government guaranteed or secured against assets to mitigate
default risk.
The EIM will seek to reduce all risks associated with the Fund by virtue of its experience, the analytical process
adopted and by structuring a broadly diversified investment pool.
Temporary Defensive Position
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 maybe inconsistent with the Fund’s
principal strategy. In this regard, the Fund may hold cash or cash equivalent instruments as the Fund’s only
asset.
Investment Policy
1) The diagram below displays the investment policy practiced by the AMBETF: -
COMPANIES LISTED ON THE
BURSA SECURITIES
PERFORMANCE FILTER
NEGATIVE FILTER TO REMOVE
INAPPROPRIATE INVESTMENTS;
- principal business in the promotion of
gaming, tobacco and alcohol
POSITIVE FILTER;
- Environmentally friendly
- Promote healthy social values
- Good corporate governance
IDENTIFY SUITABLE COMPANIES
FOR INVESTMENT PURPOSES
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2) To achieve the objective of the AMBETF, the Fund will only invest in companies that are deemed to meet
our stringent value investment criterion. For further details, please refer to the section entitled ‘Investment
Approach’.
3) As the Fund places heavy emphasis on the need to invest only in ethical companies, the Fund will screen its
investments and remove companies whose principal business involves the promotion of gambling,
tobacco and alcohol. This screen is known as the Negative Filter. The Fund may also abstain from investing
in companies that have violated ethical principles. The remaining securities after the negative filters are
deemed as ‘Ethical’.
4) Besides having a Negative Filter, the Fund will also have a Positive Filter. This filter encourages companies
to practice the following activities as listed below: POSITIVE FILTERS
Environmentally friendly
Promote healthy social values
Maintain good corporate
governance
EXAMPLES
• Provides eco-friendly products and services
• Prevention of pollution
• Recycling
• Promotes sports, community projects
•Fulfils social obligations e.g. Housing for the poor, education and
medical care
• Charitable
• Good community relations
•Ensure compliance to regulations and proper dissemination of
information to stakeholders and employees
•Steering management to enhance well-being of employees and
customers
5) Few companies fulfill the entire criterion as laid out by the positive filters. The External Investment
Manager will encourage these companies to practise the above principles if the Fund has such companies
within its portfolio. This will be known as our Shareholder Activism Programme. The External Investment
Manager shall leverage on the expertise of the Ethical Panel of Advisors to accomplish successful practice
of the above procedures.
6) Further to our Shareholder Activism Programme, the External Investment Manager may from time to time
vote on company resolutions, after considering the Fund’s financial interests and social objectives.
However, there may be instances in which the External Investment Manager may not vote if the resolution
is irrelevant or unimportant.
7) Should any of the securities within our portfolio deviate from the Fund’s objectives then the deviation
procedures will commence. Please refer to the section entitled Deviation Procedure.
8) There is no specific percentage or monetary limit on the Fund’s investment in a single industry or security.
However, the limitations will be subject to prevailing regulatory Guidelines.
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Investment Policy
Our investment approach combines a macro-economic and market analysis “top-down” approach to decide on
strategic asset allocation with a rigorous “bottom-up” approach for stock selection which will emphasise on
value and growth potential of the stocks.
Macro Economic Analysis
Monitor and assess investment
environment to identify emerging
investment trends and themes.
Strategic Asset Allocation
Stock Selection
• Fundamental Analysis;
• Valuation screen for growth,
value, momentum and quality;
• Liquidity and market
capitalisation consideration.
Portfolio Construction
The equity selection will be based on a rigorous process, which will appraise the relative value of a company in
terms of: Price/Earnings (P.E.)
P.E. to growth
Dividend growth
Dividend yield
Price-book value
Quality of earnings (Volatility, Sustainability, Visibility)
Financial strength
Competitive risks
Profit margin
Cash flow analysis
Quality of management
Investment Strategy/Investment Mechanism
The Fund seeks to maximise total returns by providing investors with capital appreciation while reducing risk
through diversified investments, mainly in equities listed in the Bursa Malaysia that comply with ethical
principles as defined in this Fund. Asset allocation in equities and/or bonds will be subjected to a maximum of
98%. The Fund will maintain a minimum of 2% in short-term money market instruments.
The Fund will invest primarily in equities. However, the Fund is not restricted from participating in bonds/fixed
income instruments when deemed appropriate.
The bulk of investments will be invested over a medium to long-term period with active disposal and
liquidation of the investments, a strategy to control risk as well as to optimise capital gains. This is especially so
when the full growth potential of the investment is deemed to have been reduced over a prolonged bull run
and the resultant liquidity may prove handy for further investments along similar lines when the market
has sufficiently eased off. The External Investment Manager in making its investment decision shall at all
times comply with the investment restrictions and requirements as set out in the Deed.
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Policy on Active and Frequent Trading of Securities
The Fund is actively managed and the frequency of trading of securities is dependent on the objective of the
Fund and available market opportunities.
Asset Allocation
• 90% to 98% in equities and/or bonds
• 2% to 10% in short term money market instruments
• Minimum 50% in equities and/or bonds
The above asset allocation of the Fund is only indicative and will be reviewed from time to time depending on
economic and market conditions.
Benchmark
The performance of AMBETF will be benchmarked against an internally created benchmark comprising of the
FBM Emas Shariah Index and the KL Finance Index on an 80:20 basis. These 2 indices are available from the
Bursa Malaysia website.
Deviation Procedure
When any of the stocks contained within the portfolio has deviated from the Fund’s ethical objectives, the EIM
needs to undertake several measures. However it is necessary that the actions can only be undertaken when
the infringement is a publicly known factor and is uncontestable in nature.
In such event, a Deviation Report will be issued and a meeting between the EIM and the Ethical Panel of
Advisors, will be held to discuss the issue. The Deviation Report should be accompanied with proof of the
deviation. The meeting will assess the nature of the infringement, the frequency of such infringements, and
the extent of damage created by the infringement in terms of contingent liabilities.
Once the EIM and the Ethical Panel of Advisors reach a consensus, the EIM will then undertake to perform any
of the following actions: 1) Communicate with the company to voice our concerns;
2) Reduce our portfolio holdings in the company; and/or
3) Remove the company from our investment portfolio with a classification of the stock as not investable over
a period of 5 years.
The duration for the above actions will be a maximum of 2 years.
Shareholder Activism Programme
This programme entails that the EIM will encourage companies to adopt the activities as laid out in the positive
filters. This can only be conducted if the Fund has an active stake over the company. The programme is
conducted through an open dialogue with the company. The Fund will neither protest nor conduct strikes to
enforce its recommendations.
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AMB Value Trust Fund
Type of Fund
Capital Growth Fund
Category of Fund
Equity Fund
Investment Philosophy
Investment of AMBVTF will invest into securities which are trading below their intrinsic values. The Fund is
structured to provide investors with capital growth in the medium to long term.
Investment Objective
The primary objective of AMBVTF is to provide investors with capital growth through investments into
securities that are trading at a discount to their intrinsic values, while minimising the risk in the medium to
long term.
Any material change to the investment objective of the Fund would require Unit Holders’ approval.
Approved Fund Size of AMBVTF
The approved fund size of AMBVTF is 300 million Units.
Investors’ Profile
The ideal investor for this Fund should have the following characteristics: (i) Willing to accept risks for returns presented by the equity and bond market;
(ii) Want to capitalise on the value investment approach when investing in equity markets; and
(iii) Possessing a long term investment horizon in excess of 5 years.
Benefits for Investors
Provides investors with an alternative approach when investing in equity markets. Value investments do not
necessarily behave in a similar fashion when compared to growth oriented investments.
This is generally due to the fact that value funds are normally associated with neglected or “out-of-favour
stocks” while growth funds are focused on stocks with the above average growth.
Specific Benefits of Investing in AMBVTF
Free Insurance Protection Coverage for AMBVTF
Eligible Unit Holders (natural persons) of AMBVTF will be given free GPA insurance coverage. Unit Holders
holding a minimum of 2,000 Units and above will automatically be covered under the GPA insurance coverage.
The sum covered would be RM0.50 for every Unit held subject to a minimum investment of 2,000 Units and
maximum coverage of RM200,000.
The GPA Insurance Coverage covers:
(i) Death due to accidental causes only;
(ii) TPD due to accidental causes; and
(iii) Funeral expenses as follows:
Units
Funeral Expenses
2,000 to 49,999
RM1,000
50,000 and above
RM2,000
While the policy is in force, the amount of coverage shall be based on the amount of Units held at the time of
accident which led to claim.
Eligible Unit Holders must be aged between 18 to 69 years old. The GPA coverage ceases automatically when
you attain the age of 70 years old. Eligible principal Unit Holder and jointholder(s) will be covered under the
GPA insurance coverage but the sum covered will be shared equally.
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Regular Savings Plan
You have the opportunity to invest through standing instruction. This plan makes regular savings easy and
allows you to arrange transfers from your bank account to AMBVTF.
Affordability
Investors can invest with just RM500 as a minimum initial investment and subsequent investments can be
made with a minimum of RM100.
Accessibility
Investors can easily access any Distribution Branch to perform any enquiry or transaction.
Potential Risks Associated with AMBVTF
Market Risk
This is fluctuation in the market performance due to factors such as fluctuation in interest rates, and changes
in economic climate, political and social environments that will affect the stock or bond market as a whole.
They will also affect the value of investment either in a positive or negative way.
Individual Stock Risk
AMBVTF 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 shortterm. This accounts for the market risk when investing in this Fund. However, this impact is minimised through
portfolio diversification.
Credit/Default Risk
AMBVTF invests in fixed income securities, so its portfolio is subject to credit risk. This is the risk that the issuer
of the security may default and not be able to make timely principal and interest payments on the security.
The lower-rated corporate debt securities will normally have greater risk of defaults.
Interest Rate Risk
Fixed income securities are particularly sensitive to movements in interest rates. When interest rates rise, the
value of fixed income securities falls and vice versa, thus affecting the NAV of the Fund. Furthermore, fixed
income securities with longer maturity and lower yield coupon rates are more susceptible to interest rate
movements.
Liquidity Risk
Liquidity risk is the risk that the security/instrument invested in cannot be readily sold and converted into cash.
This can occur when trading volume for the security is low and/or when there is a lack of demand for the
security. In managing liquidity risk, the Fund will limit its exposure to instruments, which are deemed less
liquid.
Operational Risk is the risk of loss to the unit holder arising from inadequacies in, or failures of, our internal
procedures and controls for monitoring and quantifying the risks and contractual obligations associated with
investments in AMBVTF.
Control of Risk
The EIM will take reasonable steps to ensure that the above potential risks are managed by:
a) actively monitoring the Fund’s asset allocation to ensure minimum impact from any adverse market
movements. They will ensure that the fixed income securities and equities are carefully selected through
company visits, fundamental analysis and portfolio diversification. In the case of fixed income securities,
the EIM will also focus on the credit quality of the fixed income securities, which must be of good
investment grade of at least BBB rating or equivalent by RAM, MARC or any other similar rating
establishment.
b) investing the Fund over a wide range of fixed income securities and equities of different companies which
provides diversification across a number of sectors and industries, minimising the risk not only of any single
company’s securities becoming worthless, but also of all holdings suffering uniformly adverse business
conditions.
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c) lengthening or shortening the Fund’s average maturity period of the fixed income investments (within the
Fund’s objective) in anticipation of changing interest rates.
d) selecting investments that are bank or government guaranteed or secured against assets to mitigate
default risk.
The EIM will seek to reduce all risks associated with the Fund by virtue of its experience, the analytical process
adopted and by structuring a broadly diversified investment pool.
Temporary Defensive Positions
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 at higher levels than what is prescribed or
cash equivalent instruments as the Fund’s only assets.
Investment Policy
The Fund will invest in companies that are competitive and well-managed and that offer attractive growth
prospects over the medium to long term. The Fund will invest in 2 categories of companies: those that are
either, strong and competitive on a global or regional basis, and those that are strong within their domestic
markets.
While the main focus will be on long-term growth, the Manager will only invest in companies where valuation
levels can be justified.
Competitive edge will be defined in terms of: • superiority of products and service;
• business franchise;
• distribution capability;
• forward looking management;
• shareholder value orientated management style;
• financial strength;
• research and development capability; and
• high barriers to entry for competitors.
Investment Approach
Our investment approach emphasises on a “bottom-up” approach that focuses on specific stock selection
rather than markets and sectors. Nevertheless, the Fund will adopt a macro-economic and market analysis
“top-down” approach to decide on strategic asset allocation. Stocks are selected for their value (Value Driven
Approach).
Stock Universe
In depth Analysis
Stock Selection
Portfolio Construction
• Fundamental Analysis;
• Valuation screen for growth,
value, momentum and
quality ;
• Liquidity and market
capitalization consideration.
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The equity selection will be based on a rigorous process, which will appraise the intrinsic value of a company in
terms of: • Price/Earnings (P.E.)
• P.E. to growth
• Dividend growth
• Dividend yield
• Price-book value
• Quality of earnings (Volatility, Sustainability, Visibility)
• Financial strength
• Competitive risks
• Profit margin
• Cash flow analysis
• Quality of management.
Investment Strategy/Investment Mechanism
The Fund seeks to maximise total returns by providing investors with capital appreciation while reducing risk
through diversified investments, mainly in equities listed on the Bursa Malaysia. Asset allocation in equities
and/or bonds will be subjected to a maximum of 98%. The Fund will maintain a minimum of 2% in short-term
money market instruments.
The Fund will invest primarily in equities. However, the Fund is not restricted from participating in bonds/fixed
income instruments when deemed appropriate.
The bulk of investments will be invested over a medium to long-term period with active disposal and
liquidation of the investments, a strategy to control risk as well as to optimise capital gains. This is especially so
when the full growth potential of the investment is deemed to have been reduced over a prolonged bull run
and the resultant liquidity may prove handy for further investments along similar lines when the market has
sufficiently eased off. The EIM, in making its investment decision, shall at all times comply with the investment
restrictions and requirements as set out in the Deed.
Policy on Active and Frequency Trading of Securities
The Fund is actively managed and the frequency of the Fund’s trading strategy is very much depending on
market opportunities.
Asset Allocation
• Minimum 90% Maximum 98% in equities and/ or debt instruments
• Minimum 2% Maximum 10% in cash/ money market instruments
• Minimum 50% in equities and/ or bonds
The above asset allocation of the Fund is only indicative and will be reviewed from time to time depending on
economic and market conditions.
Benchmark
The performance of AMBVTF will be benchmarked against the FBM KLCI which is obtainable from the Bursa
Malaysia website.
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AMB Lifestyle Trust Fund Today
Type of Fund
Income Fund
Category of Fund
Fixed Income Fund
Investment Philosophy
AMBLTF Today will invest in a well-diversified portfolio of assets, which includes money market securities,
fixed income securities, equities and other securities that are permitted by the authorities from time to time.
The portfolio is an actively managed defensive Fund aimed to provide investors with regular income and
moderate capital growth.
Investment Objective
To seek regular income stream and moderate capital growth through investments into fixed income securities
and dividend yielding equities.
Any material change to the investment objective of the Fund would require Unit Holders’ approval.
Approved Fund Size of AMBLTF Today
The approved Fund size for AMBLTF Today is 250 million Units.
Investors’ Profile
The Fund is suitable for investors with the following profile: • Investors who seek a defensive investment solution that comprises fixed income Instruments and a minor
portion of equity; and
• Investors who seek returns that is well diversified across various asset classes.
Benefits for Investors
Extensive Diversification
Your portfolio is made up of essential asset classes comprising equities, bonds and money market instruments.
A Personalised Approach
You decide when you will need your money and how you feel about risk, and choose the AMB Lifestyle
portfolio that is tailored to meet your needs. The AMB Lifestyle portfolio allows you the flexibility to select the
right segment to fit your lifestyle or requirement over a wider time horizon.
Example: If you have a longer time period before money is required, you may have a higher tolerance for risk
in your investments. This is because peaks and troughs of performance tend to smooth out over time. If there
is a shorter period of time before your retirement income is needed, then a lower tolerance for risk is allowed.
Each AMB Lifestyle portfolio represents the number of years you expect to begin realising your investment. As
you get closer to the year of withdrawal, the External Investment Manager will gradually re-balance the
portfolio mix to optimize your returns.
Specific Benefits of Investing in AMBLTF Today
Regular Savings Plan
You have the opportunity to invest through standing instruction. This plan makes regular savings easy and
allows you to arrange transfers from your bank account to AMBLTF Today.
Affordability
Investors can invest just RM500 as a minimum initial investment and subsequent investments can be made at
a minimum of RM100
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Accessibility
Investors can easily access any Distribution Branch to perform any enquiry or transaction.
Potential Risks Associated with AMBLTF Today
Market Risk
This is fluctuation in the market performance due to factors such as fluctuation in interest rates, and changes
in economic climate, political and social environments that will affect the stock or bond market as a whole.
They will also affect the value of investment either in a positive or negative way.
Individual Stock Risk
AMBLTF Today 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 shortterm. This accounts for the market risk when investing in this Fund. However, this impact is minimised through
portfolio diversification.
Credit/Default Risk
AMBLTF Today invests in fixed income securities, so its portfolio is subject to credit risk. This is the risk that the
issuer of the security may default and not be able to make timely principal and interest payments on the
security. The lower-rated corporate debt securities will normally have greater risk of defaults.
Interest Rate Risk
Fixed income securities are particularly sensitive to movements in interest rates. When interest rates rise, the
value of fixed income securities falls and vice versa, thus affecting the NAV of the Fund. Furthermore, fixed
income securities with longer maturity and lower yield coupon rates are more susceptible to interest rate
movements.
Liquidity Risk
Liquidity risk is the risk that the security/instrument invested in cannot be readily sold and converted into cash.
This can occur when trading volume for the security is low and/or when there is a lack of demand for the
security. In managing liquidity risk, the Fund will limit its exposure to instruments, which are deemed less
liquid.
Operational Risk is the risk of loss to the unit holder arising from inadequacies in, or failures of, our internal
procedures and controls for monitoring and quantifying the risks and contractual obligations associated with
investments in AMBLTF Today.
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 Ringgit Malaysia, 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.
Control of Risk
The EIM will take reasonable steps to ensure that the above potential risks are managed by:
a) actively monitoring the Fund’s asset allocation to ensure minimum impact from any adverse market
movements. They will ensure that the fixed income securities and equities are carefully selected through
company visits, fundamental analysis and portfolio diversification. In the case of fixed income securities,
the EIM will also focus on the credit quality of the fixed income securities, which must be of good
investment grade of at least BBB rating or equivalent by RAM, MARC or any other similar rating
establishment.
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b) investing the Fund over a wide range of fixed income securities and equities of different companies which
provides diversification across a number of sectors and industries, minimising the risk not only of any single
company’s securities becoming worthless, but also of all holdings suffering uniformly adverse business
conditions.
c) lengthening or shortening the Fund’s average maturity period of the fixed income investments (within the
Fund’s objective) in anticipation of changing interest rates.
d) selecting investments that are bank or government guaranteed or secured against assets to mitigate
default risk.
The External Investment Manager will seek to reduce all these risks associated with the Fund by virtue of its
experience, the analytical process adopted and by structuring a broadly diversified investment pool.
Temporary Defensive Positions
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. The portfolio may be hedged through futures contracts.
Investment Strategy/Investment Mechanism
To achieve its investment objective of a regular income stream, the Fund will allocate at least 80% of its assets
into the Malaysian fixed income markets with the balance in dividend yielding equities to enhance the returns
for the portfolio. To reduce the volatility of our equity investments, we may diversify by investing in both the
Malaysia and other Asian markets. The equity portion can and will be reduced to zero in times of market
uncertainties. Futures may also be employed from time to time to hedge the portfolio.
In formulating the investment strategy, the Manager will consider the following to determine the portion of
investment to be in foreign markets (within permitted amounts): a) Comparison of economic outlook of other Asian economies against the Malaysian economy to determine
the growth prospects and economic cycle.
b) Assessment of country, political and social risks.
c) Comparison of liquidity flows in all the Asian countries.
d) Risks or attractions specific to countries/region.
e) Currency risks.
Policy on Active and Frequency Trading of Securities
The Fund is actively managed and the frequency of the Fund’s trading strategy is very much depending on
market opportunities.
Asset Allocation
Minimum 0 Maximum 20% in equities
Minimum 80% Maximum 100% in bonds and money market/cash.
Benchmark
The performance of AMBLTF Today will be benchmarked against 80% of the Quantshop MGS Index and 20% of
the performance of the FBM EMAS Index. These benchmark returns are obtainable from the Quantshop
website at www.quantshop.com and the Bursa Malaysia website respectively.
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AMB Lifestyle Trust Fund 2014
Type of Fund
Growth Fund
Category of Fund
Balanced Fund
Investment Philosophy
AMBLTF 2014 will invest in a well-diversified portfolio of assets, which includes money market securities, fixed
income securities, equities and other securities that are permitted by the authorities from time to time. The
portfolio is an actively managed balanced Fund aimed to optimise returns while minimising risks encountered
by investors. The Fund is particularly suited to investors who have a 10 year investment horizon, or more, from
the launch of the Fund.
Investment Objective
To provide capital growth for investors through a well-diversified balanced portfolio that is specially catered
for a 10 years investment period. Over its investment period, the Fund shall progressively adopt more
defensive investment strategies as the Fund approaches closer to maturity.
Any material change to the investment objective of the Fund would require Unit Holders’ approval.
Approved Fund Size of AMBLTF 2014
The approved Fund size of AMBLTF 2014 is 250 million Units.
Investors’ Profile
The Fund is suitable for investors with the following profile: • Investors who seek an investment solution for a period of 10 years from the commencement date of the
Fund.
• Investors who seek returns that is well diversified across various asset classes; and
• Investors who desire to have a fund that would automatically become more defensive over time.
Benefits for Investors
Extensive Diversification
Your portfolio is made up of essential asset classes comprising equities, bonds and money market instruments
that will be balanced over time to optimise your investment.
A Personalised Approach
You decide when you will need your money and how you feel about risk, and choose the AMB Lifestyle
portfolio that is tailored to meet your needs. The AMB Lifestyle portfolio allows you the flexibility to select the
right segment to fit your lifestyle or requirement over a wider time horizon.
Example: If you have a longer time period before money is required, you may have a higher tolerance for risk
in your investments. This is because peaks and troughs of performance tend to smooth out over time. If there
is a shorter period of time before your retirement income is needed, then a lower tolerance for risk is allowed.
Each AMB Lifestyle portfolio represents the number of years you expect to begin realising your investment. As
you get closer to the year of withdrawal, the External Investment Manager will gradually re-balance the
portfolio mix to optimize your returns.
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Specific Benefits of Investing in AMBLTF 2014
Free Insurance Protection Coverage
Eligible Unit Holders (natural persons) of AMBLTF 2014 will be given free standard GPA coverage. Unit Holders
holding a minimum amount of 2,000 Units and above will automatically be covered under the standard GPA
insurance for accidental death and TPD with the following extensions:(i) Medical expenses
(ii) Funeral expenses
(iii) Repatriation expenses
Units
2,000 – 49,999
50,000 and above
Medical Expenses
RM1,000
RM2,000
Funeral Expenses
RM1,000
RM2,000
Repatriation Expenses
RM1,000
RM2,000
The sum insured would be RM0.50 for every Unit held subject to a minimum investment of 2,000 Units and
maximum coverage of RM150,000. While the policy is in force, the amount of sum insured per eligible Unit
Holder shall be the amount of Units held by the eligible Unit Holder as at the date of accident leading to the
claim.
Eligible Unit Holder must be aged between 18 to 69 years old. The standard GPA coverage ceases
automatically when you attain the age of 70 years old. Eligible principal Unit Holder and jointholder(s) will be
covered under the standard GPA but the sum covered will be shared equally.
Regular Savings Plan
You have the opportunity to invest through standing instruction. This plan makes regular savings easy and
allows you to arrange transfers from your bank account to AMBLTF 2014.
Affordability
Investors can invest just RM500 as a minimum initial investment and subsequent investments can be made
with a minimum of RM100.
Accessibility
Investors can easily access any Distribution Branch to perform any enquiry or transaction.
Potential Risks Associated with AMBLTF 2014
Market Risk
This is fluctuation in the market performance due to factors such as fluctuation in interest rates, and changes
in economic climate, political and social environments that will affect the stock or bond market as a whole.
They will also affect the value of investment either in a positive or negative way.
Individual Stock Risk
AMBLTF 2014 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 shortterm. This accounts for the market risk when investing in this Fund. However, this impact is minimised through
portfolio diversification.
Credit/Default Risk
AMBLTF 2014 invests in fixed income securities, so its portfolio is subject to credit risk. This is the risk that the
issuer of the security may default and not be able to make timely principal and interest payments on the
security. The lower-rated corporate debt securities will normally have greater risk of defaults.
Interest Rate Risk
Fixed income securities are particularly sensitive to movements in interest rates. When interest rates rise, the
value of fixed income securities falls and vice versa, thus affecting the NAV of the Fund. Furthermore, fixed
income securities with longer maturity and lower yield coupon rates are more susceptible to interest rate
movements.
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Liquidity Risk
Liquidity risk is the risk that the security/instrument invested in cannot be readily sold and converted into cash.
This can occur when trading volume for the security is low and/or when there is a lack of demand for the
security. In managing liquidity risk, the Fund will limit its exposure to instruments, which are deemed less
liquid.
Operational Risk is the risk of loss to the unit holder arising from inadequacies in, or failures of, our internal
procedures and controls for monitoring and quantifying the risks and contractual obligations associated with
investments in AMBLTF 2014.
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 Ringgit Malaysia, 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.
Control of Risk
The EIM will take reasonable steps to ensure that the above potential risks are managed by:
a) actively monitoring the Fund’s asset allocation to ensure minimum impact from any adverse market
movements. They will ensure that the fixed income securities and equities are carefully selected through
company visits, fundamental analysis and portfolio diversification. In the case of fixed income securities,
the EIM will also focus on the credit quality of the fixed income securities, which must be of good
investment grade of at least BBB rating or equivalent by RAM, MARC or any other similar rating
establishment.
c) investing the Fund over a wide range of fixed income securities and equities of different companies which
provides diversification across a number of sectors and industries, minimising the risk not only of any single
company’s securities becoming worthless, but also of all holdings suffering uniformly adverse business
conditions.
e) lengthening or shortening the Fund’s average maturity period of the fixed income investments (within the
Fund’s objective) in anticipation of changing interest rates.
f) selecting investments that are bank or government guaranteed or secured against assets to mitigate
default risk.
The EIM will seek to reduce all risks associated with the Fund by virtue of its experience, the analytical process
adopted and by structuring a broadly diversified investment pool.
Temporary Defensive Positions
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. The portfolio may be hedged through futures contracts.
Investment Strategy/Investment Mechanism
To achieve its investment objectives, the Fund will invest in Malaysian equities and fixed income securities.
Where appropriate Asian equities may be included to further diversify the Fund. In formulating the investment
strategy, the Manager will consider the following to determine the portion of asset class to be in foreign
investments (within permitted amounts):-
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a) Comparison of economic outlook of Malaysian and other Asian economies to determine the growth
prospects and economic cycle of each country;
b) Assessment country, political and social risks;
c) Comparison of liquidity flows in all Asian countries;
d) Risks or attractions specific to countries/region; and
e) Currency risks.
Policy on Active and Frequency Trading of Securities
The Fund is actively managed and the frequency of the Fund’s trading strategy is very much depending on
market opportunities.
Investment Strategy and Processes
In addition to the strategy employed above, the Fund is unique in its investment methodology as it regularly
employs two asset-rebalancing practices at specific intervals within the life of the Fund. These 2 assetrebalancing practices are done on: 1) Interim Asset Rebalancing Date (IARD)
2) Targeted Asset Rebalancing Date (TARD)
The purpose for the 2 practices is detailed below.
Asset Class Movement
The AMBLTF 2014 is a Fund, which periodically reviews its asset allocation to contain risks while maximizing its
return potential. This is carried out on the IARD, which is every 3 months beginning from the commencement
date of the Fund.
In addition to this, the Fund will also employ a progressively defensive investment strategy every 30 months
into the life of the Fund. This process of systematic reduction of risk for the portfolio takes place on the TARD.
This is accomplished via a targeted asset allocation (“TAA”) indicated upfront to the Unit Holder.
The AMBLTF 2014 predetermined asset allocation for each 30-month period is as displayed in the diagram
below.
AMBLTF 2014 begins with higher equity
allocation to provide better growth
potential during the initial years.
10 years to
maturity
7.5 years to
maturity
46%
5 years to
maturity
TAA 1
Bonds and money market
TAA 3
Maturity
20%
27%
80%
73%
66%
TAA 2
2.5 years to
maturity
34%
40%
60%
54%
AMBLTF 2014 approaches maturity
with lower equity exposure, thereby
reducing volatility.
TAA 4
Maturity
Equities
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TAA 1
(December 23, 2004 – June 22, 2007)
TAA 2
(June 23, 2007 – December 22, 2009)
TAA 3
(December 23, 2009 – June 22, 2012)
TAA 4
(June 23, 2012 – December 22, 2014)
Interim Asset Rebalancing Date (IARD)
IARD occurs every 3 months after the launch date of the Fund. The review on these dates aims to keep the
portfolio within, the TAA limits as agreed with the investor for that particular 30 months period.
Should the overall portfolio differ from the TAA requirements at each 3 months period, adjustments will be
made to correct the imbalances in the asset allocation. The imbalance is usually caused by market fluctuations.
E.g. If the TAA for the investment period is targeted at 66% bonds and money markets and 34% equities, and at
an IARD the portfolio consisted of 52% bonds and money markets and 48% equities, then the EIM will liquidate
the excessive equity exposure while simultaneously increasing the bonds and money markets portion.
While the TAA pre-determines the asset mix between fixed income (bonds and money market Instruments)
and equities, discretion is given to the Manager to increase the bond and money market mix in accordance to
their economic and market outlook. The variation allowed for bonds and money market for each TAA is as
displayed in the Table below.
Targeted Asset Rebalancing Date (TARD)
Every 2 ½ years into the life of the Fund, AMBLTF 2014 will adopt an increasingly defensive asset allocation
strategy. The purpose for this is to ensure that as the investment horizon shortens, the investor will not be
exposed to excessive risk. This process involves reducing the volatility of the portfolio by increasing holding in
less volatile assets such as bonds and cash, while reducing volatile assets such as equity.
Asset Allocation
The following table indicates the maximum & minimum target exposures for equities and fixed income
(comprising of bonds and money market Instruments) for each TAA: -
Bonds & money market (min)
Bonds & money market (max)
Equities (min)
Equities (max)
TAA 1
54%
59%
41%
46%
TAA 2
60%
65%
35%
40%
TAA 3
66%
71%
29%
34%
TAA 4
73%
78%
22%
27%
Maturity of the Fund
AMBLTF 2014 will mature on December 22, 2014, which is the date of the tenth (10th) anniversary of the
commencement date. The Fund shall be terminated on the Maturity Date and all Units held by the Unit
Holders will be redeemed. The NAV per Unit will be calculated by dividing the NAV over the UIC. The net
proceeds will be paid to Unit Holders within 2 months after the Maturity Date.
Special Terms and Conditions
1.
The Units in this Fund shall cease to be created and sold by the Manager to an investor or Unit Holder
after the date falling six (6) months before the Maturity Date or such other period as may be determined
by the Manager (the “Cut Off Date”).
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2.
A Unit Holder may write in at any time after the Cut Off Date and before the Maturity Date to request the
Manager to repurchase all the Units in this Fund held by such Unit Holder on the Maturity Date of this
Fund to either;
(a) Pay the proceeds to him in cash; or
(b) Reinvest the proceeds thereof by purchasing Units in AMBLTF Today at the price equal to the Net
Asset Value of the Units of this Fund on the Maturity Date:
and the Manager shall act accordingly.
Benchmark
The benchmark will be based on the proportion of equity and fixed income stated at the start of the TARD as
illustrated at the Table below.
Asset Mix / Benchmark
Equities - FBM EMAS Index
Bonds & money market – Quantshop MGS Index
TAA 1
46%
54%
TAA 2
40%
60%
TAA 3
34%
66%
TAA 4
27%
73%
An illustration of the benchmark is as follows: Benchmark (TAA 1);
(% change in FBM EMAS Index x 46% of NAV) + (% Quantshop MGS Index x 54% of NAV)
Benchmark (TAA 2);
(% change in FBM EMAS Index x 40% of NAV) + (% Quantshop MGS Index x 60% of NAV)
Benchmark (TAA 3)
(% change in FBM EMAS Index x 34% of NAV) + (% Quantshop MGS Index x 66% of NAV)
Benchmark (TAA 4);
(% change in FBM EMAS Index x 27% of NAV) + (% Quantshop MGS Index x 73% of NAV)
The FBM EMAS Index and the Quantshop MGS Index are available from the Bursa Malaysia website and the
Quantshop website respectively.
Specific Salient Features of the Fund and Terms of Investing in the Fund such as Commencement
Date, Maturity Date
In addition to the discipline of having a more conservative TAA towards the maturity of the Fund as detailed
above, the Fund will diversify its holdings in equities and fixed income securities within the limits permitted. As
the Fund approaches its Maturity Date, the duration of the fixed income securities will be shortened to match
the Maturity Date as closely as possible. The selection of stocks in the equity portfolio will also be more
defensive as the Fund approaches the maturity date.
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AMB Dividend Trust Fund
Type of Fund
Income and Growth Fund
Fund Category
Equity Fund
Investment Philosophy
AMBDTF will invest in a well-diversified equity portfolio, and which will focus on high (and potentially high)
dividend yielding equities in Malaysia and other eligible market. The portfolio is an actively managed defensive
equity Fund that may also invest in fixed income securities as a tactical defensive measure depending on
market conditions.
Investment Objective
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).
Any material change to the investment objectives of the Fund would require Unit Holder’s approval.
Approved Fund Size of AMBDTF
The approved Fund size for AMBDTF is 800 million units.
Investors’ Profile
The Fund is suitable for investors with the following profile:
• Conservative and prefer receiving regular and steady income in the form of distributions; and
• Moderate risk appetite.
Benefits for Investors
Diversified Portfolio
AMBDTF is a fund that provides investors the opportunity to invest in a well-diversified Malaysian and Asian
ex-Japan equity portfolio with exposures ranging from 70% to 99.8%.
Tactical Defensive Measure
The portfolio is an actively managed defensive Fund that allows 30% of its NAV to be invested in fixed income
securities as a tactical defensive measure depending on market conditions.
Specific Benefits of Investing in AMBDTF
Free Insurance Protection Coverage
Eligible Unit Holders (natural persons) of AMBDTF will be given free GPA coverage. Unit Holders holding a
minimum amount of 4,000 Units and above will automatically be covered under the GPA insurance for
accidental death and TPD. The sum insured would be RM0.25 for every Unit held subject to a minimum
investment of 4,000 Units and maximum coverage of RM200,000.
The GPA insurance coverage covers:
(i) Death due to accidental causes only; and
(ii) TPD due to accidental causes.
Eligible Unit Holders must be aged between 18 to 69 years old. The GPA coverage ceases automatically when
you attain the age of 70 years old. Eligible Principal Unit Holder and joint holder(s) will be covered under the
GPA insurance coverage but the sum covered will be shared equally.
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Regular Savings Plan
You have the opportunity to invest through standing instruction. This plan makes regular savings easy and
allows you to arrange transfers from your bank account to AMBDTF.
Affordability
Investors can invest just RM500 as a minimum initial investment and subsequent investments can be made
with a minimum of RM100.
Accessibility
Investors can easily access any Distribution Branch to perform any enquiry or transaction.
Potential Risks Associated With AMBDTF
Market Risk
This is fluctuation in the market performance due to factors such as fluctuation in interest rates, and changes
in economic climate, political and social environments that will affect the stock or bond market as a whole.
They will also affect the value of investment either in a positive or negative way.
Individual Stock 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 shortterm. This accounts for the market risk when investing in this Fund. However, this impact is minimised through
portfolio diversification.
Credit/Default Risk
AMBDTF invests in fixed income securities, so its portfolio is subject to credit risk. This is the risk that the issuer
of the security may default and not be able to make timely principal and interest payments on the security.
The lower-rated corporate debt securities will normally have greater risk of defaults.
Interest Rate Risk
Fixed income securities are particularly sensitive to movements in interest rates. When interest rates rise, the
value of fixed income securities falls and vice versa, thus affecting the NAV of the Fund. Furthermore, fixed
income securities with longer maturity and lower yield coupon rates are more susceptible to interest rate
movements.
Liquidity Risk
Liquidity risk is the risk that the security/instrument invested in cannot be readily sold and converted into cash.
This can occur when trading volume for the security is low and/or when there is a lack of demand for the
security. In managing liquidity risk, the Fund will limit its exposure to instruments, which are deemed less
liquid.
Operational Risk is the risk of loss to the unit holder arising from inadequacies in, or failures of, our internal
procedures and controls for monitoring and quantifying the risks and contractual obligations associated with
investments in AMBDTF.
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 Ringgit Malaysia, 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.
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Control of Risk
The EIM will take reasonable steps to ensure that the above potential risks are managed by:
a) actively monitoring the Fund’s asset allocation to ensure minimum impact from any adverse market
movements. They will ensure that the fixed income securities and equities are carefully selected through
company visits, fundamental analysis and portfolio diversification. In the case of fixed income securities,
the EIM will also focus on the credit quality of the fixed income securities, which must be of good
investment grade of at least BBB rating or equivalent by RAM, MARC or any other similar rating
establishment.
b) investing the Fund over a wide range of fixed income securities and equities of different companies which
provides diversification across a number of sectors and industries, minimising the risk not only of any single
company’s securities becoming worthless, but also of all holdings suffering uniformly adverse business
conditions. Specifically for the Fund’s equities investments, given the objective of the Fund and intention of
the Fund to invest in high (and potentially high) dividend yielding stocks, the internal screen employed will
take into account the sustainability of dividends, gearing levels, historical volatility and liquidity.
c) lengthening or shortening the Fund’s average maturity period of the fixed income investments (within the
Fund’s objective) in anticipation of changing interest rates.
d) selecting investments that are bank or government guaranteed or secured against assets to mitigate
default risk.
The EIM will seek to reduce all risks associated with the Fund by virtue of its experience, the analytical process
adopted and by structuring a broadly diversified investment pool.
Temporary Defensive Positions
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.
Investment Strategy/Investment Mechanism
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 total NAV of the Fund). The selection of appropriate
equities will be driven by the External Investment Manager’s 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.
High dividend and potentially high dividend yielding stocks would be measured against FBM KLCI. Although up
to 30% of the total NAV of the Fund can be invested overseas, these investments will be opportunistic in
nature. In any event, the dividend yields on overseas investments will also be measured against domestic
interest rates. The dividend yields would be based on both historical and prospective. As such, the focus of the
Fund would be on companies that can pay out sustainable dividends. This would exclude companies involved
in highly cyclical industries where earnings, cash flows and hence dividends tend to fluctuate e.g. property
development companies.
Historical yields would provide a guide as to the company’s dividend payout policy. While some companies
may not have a high historical dividend yield, the Fund may still choose to invest in these companies if
prospective dividend yields are attractive and sustainable. Where in the opinion of the External Investment
Manager a defensive strategy is appropriate, up to 30% of the Fund may be invested in Malaysian fixed income
instruments. For fixed income securities, the Fund will mainly invest in fixed income securities carrying a
minimum credit rating of AA3 /P1 (RAM or equivalent) to provide investors with a regular stream of income,
while minimizing principal volatility.
The Fund’s equities investment will range from a minimum of 70% to a maximum of 99.8% for equities. Up to
30% of the Fund may be invested in Malaysian fixed income securities should a defensive strategy be
appropriate.
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Policy on Active and Frequency Trading of Securities
The Fund is actively managed and the frequency of the Fund’s trading strategy is very much depending on
market opportunities.
Asset Allocation
Minimum 70% Maximum 99.8% in equities
Minimum 0.2% Maximum 30% in fixed income and cash
Up to 30% of the Fund’s NAV may be invested in Asian ex-Japan markets and/or the External Investment
Manager may choose to invest solely in the domestic market.
Benchmark
The performance of AMBDTF will be benchmarked against the FBM KLCI performance and 12-month fixed
deposit rate of commercial banks. The weightings assigned will be in the proportion of 70:30. The FBM KLCI is
obtainable from Bursa Malaysia website and the 12-month fixed deposit rate of commercial banks is
obtainable from Bank Negara website.
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AMB Dana Yakin
Type of Fund
Growth Fund
Category of Fund
Equity Fund
Investment Philosophy
AMBDY is an equity fund that offers investors an opportunity to invest in a diversified portfolio of assets
managed under investment policies that adhere to the Shariah Principles. The investment portfolio of the
Fund comprises securities which has been classified as Shariah compliant by the Shariah Advisory Council of
the Securities Commission. For securities which are not certified by the Shariah Advisory Council, the Shariah
Committee Members of the Fund will determine whether the securities are Shariah compliant for investment
by the Fund.
By investing in a diversified portfolio of Shariah compliant shares in Malaysia, AMBDY provides investors with a
better spread of investments than could be achieved by investors with a small amount of money to invest.
Investment Objective
The objective of the Fund is to achieve a steady capital growth over the medium to long term period (2 years
to 5 years) through investments permissible under the Shariah Principles.
Any material change to the investment objective of the Fund would require Unit Holders’ approval.
Approved Fund Size
The approved Fund size for AMBDY is 1.2 billion Units.
Investors’ Profile
AMBDY is suited to investors who are looking for investments in a diversified portfolio of assets that conforms
to the Shariah Principles and who have a medium to long term investment horizon.
Benefits for Investors
AMBDY has been specially designed with adherence to the Shariah Principles. Through diversification process,
the risks associated with the investments are spread over the portfolio of stocks and this will lower the risk of
investing in equity. Investors can also benefit from the expertise and resources of the professional External
Investment Manager managing the Fund at an affordable cost.
Specific Benefits of Investing in AMBDY
Free Insurance Protection Coverage
Eligible Unit Holders (natural persons) of AMBDY will be given free GPA insurance coverage. Unit Holders
holding a minimum of 2,000 Units will automatically be covered under the GPA insurance coverage. The sum
covered would be RM 1,000.00 for every 2,000 Units held subject to a minimum investment of 2,000 Units and
maximum coverage of RM200,000 per Unit Holder.
The GPA insurance coverage covers:
(i) Death due to accidental causes only;
(ii) TPD due to accidental causes; and
(iii) Funeral expenses as follows:
Units
2,000 to 49,999
50,000 and above
Funeral Expenses
RM 1,000
RM 2,000
While the policy is in force, the amount of coverage shall be based on the amount of Units purchased as at the
date of death or disability.
Eligible Unit Holders must be aged between 18 to 69 years old. The GPA coverage ceases automatically when
you attain the age of 70 years old. Eligible principal Unit Holder and joint holders will be covered under the
GPA insurance coverage but, in the case of joint holdings, the sum covered will be shared equally.
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Strict adherence to the Shariah Principles
AMBDY has been specially designed with adherence to the Shariah Principles. A panel of Shariah Committee
Members of the Fund comprising of Islamic scholar's monitor the activities of the Fund.
Investment Through Diversification
AMBDY manages and aims to minimise your risks by investing in a diversified range of shariah-compliant
securities.
Regular Savings Plan
You have the opportunity to invest through standing instruction. This plan makes regular savings easy and
allows you to arrange transfers from your bank account to AMBDY.
Affordability
Investors can invest just RM500 as a minimum investment and subsequent investments can be made at a
minimum of RM100.
Accessibility
Investors can easily access any Distribution Branch to perform any enquiry or transaction.
Potential Risks Associated with AMBDY
Market Risk
This is fluctuation in the market performance due to factors such as fluctuation in interest rates, and changes
in economic climate, political and social environments that will affect the stock or bond market as a whole.
They will also affect the value of investment either in a positive or negative way.
Individual Stock Risk
AMBDY 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 shortterm. This accounts for the market risk when investing in this Fund. However, this impact is minimised through
portfolio diversification.
Liquidity Risk
Liquidity risk is the risk that the security/instrument invested in cannot be readily sold and converted into cash.
This can occur when trading volume for the security is low and/or when there is a lack of demand for the
security. In managing liquidity risk, the Fund will limit its exposure to instruments, which are deemed less
liquid.
Operational Risk
Operational Risk is the risk of loss arising from inadequacies in, or failures of, our internal procedures and
controls for monitoring and quantifying the risks and contractual obligations associated with investments in
AMBDY.
Non-Shariah Compliance Risk
This is the risk of securities, which were earlier classified as Shariah approved securities being subsequently
classified non-approved securities by the Shariah Advisory Council of the Securities Commission due to certain
reasons, such as changes in the companies’ operations. However, this risk is mitigated by regular review of the
Fund's compliance with the list of securities approved by the Shariah Advisory Council of the SC and also
monthly review of the invested securities by the Shariah Committee of the Fund.
Control of Risk
The EIM will take reasonable steps to ensure that the above potential risks are managed by:
a) Actively monitoring the Fund’s asset allocation to ensure minimum impact from any adverse market
movements. They will ensure that equities are carefully selected through site visits, fundamental analysis
and portfolio diversification.
b) Investing the Fund over a wide range of equities of different companies which provides diversification
across a number of sectors and industries, minimising the risk not only of any single company’s securities
becoming worthless, but also of all holdings suffering uniformly adverse business conditions.
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The EIM will seek to reduce all risks associated with the Fund by virtue of its experience, the analytical process
and by structuring a broadly diversified investment pool.
Temporary Defensive Positions
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 at higher levels than what is prescribed or
cash equivalent instruments as the Fund’s only assets.
Investment Policy
This is to attain the Fund's objective of achieving steady capital growth through investment in a diversified
portfolio of equities which conform to the Shariah Principles. The policy/approach undertaken will enable the
Fund to meet its objective within the investment horizon of medium to long term (2 years to 5 years).
Investment Strategy / Investment Mechanism
The investment strategy of AMBDY is to enhance the value of the Fund through diversification of stocks that
comply with Shariah Principles within the permitted investment parameters. The emphasis is given to
companies with reasonably good earnings growth prospects in the medium to longer-term horizon, quality
management and good earnings track records.
The EIM will determine the allocation between equity and liquid assets to reflect the prevailing investment
climate. In a bull market, the EIM may invest more in equity and, in a bearish market; the equity portion may
be scaled down accordingly. The asset allocation between the various instrument assets referred to above and
the decision to invest, sell or trade are based on the decision of the EIM.
Policy on Active and Frequency Trading of Securities
The Fund is actively managed and the frequency of the Fund’s trading strategy is very much depending on
market opportunities.
Policy and Strategy on Listed and Unlisted Securities
AMBDY will be investing in the equity market. Stocks selection will be based on their good earnings medium to
long term earnings visibility, good management and corporate governance that comply with Shariah Principles.
The External Investment Manager may invest up to 10% of the NAV of the Fund in securities that are not
traded in or under the rules of an eligible market. The investment process of unlisted securities is similar to the
process used for listed securities. There are no restrictions on the proportions that can be held in fixed income
investments. Nevertheless, the Fund's fixed income investments shall comprise of short-term government and
corporate debt securities and money market instruments to longer-dated instruments that conform to the
Shariah Principles.
Asset Allocation
•
•
Minimum 40%, Maximum 90% in equities
Minimum 10% in liquid assets
Benchmark
The performance of AMBDY will be benchmarked against 90% of the FBM EMAS Shariah Index and 10% of the
1-month General Investment Account-rates of commercial banks, which are obtainable from the Bursa
Malaysia website and the Bank Negara website respectively.
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AMB Dana Ikhlas
Type of Fund
Growth and Income Fund
Category of Fund
Balanced Fund
Investment Philosophy
AMBDI is an Islamic balanced fund that offers investors an opportunity to invest in a diversified portfolio of
assets managed under investment policies that adhere to the Shariah Principles. The investment portfolio of
the Fund comprises securities which has been classified as Shariah compliant by the Shariah Advisory Council
of the Securities Commission. For securities which are not certified by the Shariah Advisory Council, the
Shariah Committee Members of the Fund will determine whether the securities are Shariah compliant for
investment by the Fund.
Investment Objective
To attain a mix of regular income stream and possible capital growth via investments into listed equities, debt
instruments and other assets that are permissible under the Shariah Principles.
Any material change to the investment objective of the Fund would require Unit Holders’ approval.
Approved Fund Size
The approved Fund size for AMBDI is 400 million Units.
Investors’ Profile
The Fund is suitable for all investors who are seeking a fully managed and balanced portfolio of investments
that conforms to the Shariah Principles.
Benefits for Investors
AMBDI has been specially designed with adherence to the Shariah Principles. Through diversification process.
the risks associated with the investments are spread over the portfolio of stocks and debt instruments.
Investors can also benefit from the expertise and resources of our professional External Investment Manager
at an affordable cost.
Specific Benefits of Investing in AMBDI
Free Insurance Protection Coverage
Eligible Unit Holders (natural persons) of AMBDI will be given free GPA insurance coverage. Unit Holders
holding a minimum of 2,000 units and above will automatically be covered under the GPA insurance coverage.
The sum covered would be RM0.50 for every Unit held subject to a minimum investment of 2,000 Units and
maximum coverage of RM200,000 per Unit Holder.
The GPA insurance coverage covers:
(i) Death due to accidental causes only;
(ii) TPD due to accidental causes; and
(iii) Funeral expenses as follows:
Units
2,000 to 49,999
50,000 and above
Funeral Expenses
RM 1,000
RM 2,000
While the policy is in force, the amount of coverage shall be based on the amount of Units purchased as at the
date of death or disability.
Eligible Unit Holders must be aged between 18 to 69 years old. The GPA coverage ceases automatically when
you attain the age of 70 years old. Eligible principal Unit Holder and joint holders will be covered under the
GPA insurance coverage but, in the case of joint holdings, the sum covered will be shared equally.
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Strict adherence to the Shariah Principles
AMBDI has been specially designed with adherence to the Shariah Principles. A panel of Shariah Committee
Members of the Fund comprising of Islamic scholar's monitor the activities of the Fund.
Investment Through Diversification
AMBDI manages and aims to minimise your risks by investing in a diversified range of shariah-compliant
securities.
Regular Savings Plan
You have the opportunity to invest through standing instruction. This plan makes regular savings easy and
allows you to arrange transfers from your bank account to AMBDI.
Affordability
Investors can invest just RM500 as an initial investment and subsequent investments can be made at a
minimum of RM100.
Accessibility
Investors can easily access any Distribution Branch to perform any enquiry or transaction.
Potential Risks Associated with AMBDI
Market Risk
This is fluctuation in the market performance due to factors such as fluctuation in interest rates, and changes
in economic climate, political and social environments that will affect the stock or bond market as a whole.
They will also affect the value of investment either in a positive or negative way.
Individual Stock Risk
AMBDI 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 shortterm. This accounts for the market risk when investing in this Fund. However, this impact is minimised through
portfolio diversification.
Credit/Default Risk
AMBDI invests in fixed income securities, so its portfolio is subject to credit risk. This is the risk that the issuer
of the security may default and not be able to make timely principal and interest payments on the security.
The lower-rated corporate debt securities will normally have greater risk of defaults.
Interest Rate Risk
Fixed income securities are particularly sensitive to movements in interest rates. When interest rates rise, the
value of fixed income securities falls and vice versa, thus affecting the NAV of the Fund. Furthermore, fixed
income securities with longer maturity and lower yield coupon rates are more susceptible to interest rate
movements.
Liquidity Risk
Liquidity risk is the risk that the security/instrument invested in cannot be readily sold and converted into cash.
This can occur when trading volume for the security is low and/or when there is a lack of demand for the
security. In managing liquidity risk, the Fund will limit its exposure to instruments, which are deemed less
liquid.
Operational Risk is the risk of loss to the unit holder arising from inadequacies in, or failures of, our internal
procedures and controls for monitoring and quantifying the risks and contractual obligations associated with
investments in AMBDI.
Non-Shariah Compliance Risk
This is the risk of securities, which were earlier classified as Shariah approved securities being subsequently
classified non-approved securities by the Shariah Advisory Council of the Securities Commission due to certain
reasons, such as changes in the companies’ operations. However, this risk is mitigated by regular review of the
Fund's compliance with the list of securities approved by the Shariah Advisory Council of the SC and also
monthly review of the invested securities by the Shariah Committee of the Fund.
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Control of Risk
The EIM will take reasonable steps to ensure that the above potential risks are managed by:
a) actively monitoring the Fund’s asset allocation to ensure minimum impact from any adverse market
movements. They will ensure that the fixed income securities and equities are carefully selected through
site visits, fundamental analysis and portfolio diversification. In the case of fixed income securities, the
External Investment Manager will also focus on the credit quality of the fixed income securities, which
must have at least BBB rating or equivalent by RAM, MARC or any other similar rating establishment.
b) investing the Fund over a wide range of fixed income securities and equities of different companies which
provides diversification across a number of sectors and industries, minimising the risk not only of any single
company’s securities becoming worthless, but also of all holdings suffering uniformly adverse business
conditions.
c) lengthening or shortening the Fund’s average maturity period of the fixed income investments (within the
Fund’s objective) in anticipation of changing interest rates.
d) selecting investments that are bank or government guaranteed or secured against assets to mitigate
default risk.
The EIM will seek to reduce all risks associated with the Fund by virtue of its experience, the analytical process
and by structuring a broadly diversified investment pool.
Temporary Defensive Positions
When deemed appropriate and for the benefit of the Fund, the External Investment Manager 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.
Investment Policy
This is to create an optimal mix of equities, debt securities and money market instruments which conform to
Shariah principles. The policy/approach undertaken will enable investors to attain a balanced income derived
through investment in the above instruments.
Investment Strategy / Investment Mechanism
Equities Investment Strategy
AMBDI will focus on stocks which comply with Shariah Principles. Emphasis is given to companies with
reasonably good earnings growth prospects in the medium to longer term horizon, quality management and
good corporate governance.
Fixed Income Investment Strategy
Investments in this asset class range from short-term government and corporate debt securities and money
market instruments to longer-dated government and corporate bonds that conform to the Shariah Principles.
Focus will be on overall credit quality and potential yield.
Depending on the prevailing economic scenario, AMBDI aims to optimally balance its investments between
potentially high return quality investments and lower risk Islamic debt and money market instruments. Specific
investments are mainly those that offer good potentials for income and growth. The External Investment
Manager will change the Fund's asset allocation depending on the prevailing economic conditions and the
market outlook for both equity and bond. This strategy aims to reduce risk and achieve consistent returns.
Investment shall be made in fixed income securities with minimum credit ratings of P2 or MARC2 for short
term papers or A3/A- for long term papers by RAM/MARC. The External Investment Manager shall undertake
to conduct a thorough and rigorous credit assessment of potential investments and constant monitoring of
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current investments. A filtration process is employed for securities selection to ensure superior selection which
complements the objective of the portfolio. The filtration process includes debt rating, financial ratio analysis,
management quality assessment and structure of a particular instrument.
Policy on Active and Frequency Trading of Securities
The Fund is actively managed and the frequency of the Fund’s trading strategy is very much depending on
market opportunities.
Asset Allocation
• Minimum 20% to Maximum 70% in equities
• Minimum 20% to Maximum 70% in debt instruments
• Minimum 2% in cash
Benchmark
The performance of AMBDI will be benchmarked against 60% of the FBM EMAS Shariah Index and 40% of the
12-month General Investment Account-rates of commercial banks, which are obtainable from the Bursa
Malaysia website and Bank Negara website respectively.
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AMB Dana Arif
Type of Fund
Income Fund
Category of Fund
Bond Fund
Investment Philosophy
AMBDA is an income-oriented Fund, which invests primarily in a portfolio of Islamic debt securities. It is
structured to earn income on a regular basis and to achieve capital appreciation through fluctuations in market
yields of Islamic debt securities.
The investment portfolio of the Fund comprises securities which has been classified as Shariah compliant by
the Shariah Advisory Council of the Securities Commission. For securities which are not certified by the
Shariah Advisory Council, the Shariah Committee Members of the Fund will determine whether the securities
are Shariah compliant for investment by the Fund.
Investment Objective
To provide a steady appreciation of the NAV of the Fund with a regular flow of income to our 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.
Approved Fund Size
The approved Fund size for AMBDA is 1 billion Units.
Investors’ Profile
The Fund is suitable for investors with the following profile: • Prefer a consistent and steady appreciation in value through investments in debt instruments that are
permissible under Shariah Principles.
• Possess a long term investment horizon.
Benefits for Investors
AMBDA is suitable for investors who seek returns from a well-diversified portfolio of debt securities that
conform to the Shariah Principles. Owing to the assets investible by the Fund, investors may experience
reduced volatility when compared to equity related Funds and also possible generation of a regular income
stream.
Further to this, AMBDA is an avenue for investors to invest in a well-diversified Islamic debt securities portfolio
without huge capital outlays.
Specific Benefits of Investing in AMBDA
Strict adherence to the Shariah Principles
AMBDA has been specially designed with adherence to the Shariah Principles. A panel of Shariah Committee
Members of the Fund comprising of Islamic scholar's monitor the activities of the Fund.
Investment Through Diversification
AMBDA manages and aims to minimise your risks by investing in a diversified range of shariah-compliant
securities.
Regular Savings Plan
You have the opportunity to invest through standing instruction. This plan makes regular savings easy and
allows you to arrange transfers from your bank account to AMBDA.
Affordability
Investors can invest just RM 1,000 as a minimum initial investment and subsequent investments can be made
at a minimum of RM500.
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Accessibility
Investors can easily access any Distribution Branch to perform any enquiry or transaction.
Potential Risks Associated with AMBDA
Market Risk
This is fluctuation in the market performance due to factors such as fluctuation in interest rates, and changes
in economic climate, political and social environments that will affect the stock or bond market as a whole.
They will also affect the value of investment either in a positive or negative way.
Credit/Default Risk
AMBDA invests in fixed income securities, so its portfolio is subject to credit risk. This is the risk that the issuer
of the security may default and not be able to make timely principal and interest payments on the security.
The lower-rated corporate debt securities will normally have greater risk of defaults.
Interest Rate Risk
Fixed income securities are particularly sensitive to movements in interest rates. When interest rates rise, the
value of fixed income securities falls and vice versa, thus affecting the NAV of the Fund. Furthermore, fixed
income securities with longer maturity and lower yield coupon rates are more susceptible to interest rate
movements.
Liquidity Risk
Liquidity risk is the risk that the security/instrument invested in cannot be readily sold and converted into cash.
This can occur when trading volume for the security is low and/or when there is a lack of demand for the
security. In managing liquidity risk, the Fund will limit its exposure to instruments, which are deemed less
liquid.
Operational Risk is the risk of loss to the unit holder arising from inadequacies in, or failures of, our internal
procedures and controls for monitoring and quantifying the risks and contractual obligations associated with
investments in AMBDA.
Non-Shariah Compliance Risk
This is the risk of securities, which were earlier classified as Shariah approved securities being subsequently
classified non-approved securities by the Shariah Advisory Council of the Securities Commission due to certain
reasons, such as changes in the companies’ operations. However, this risk is mitigated by regular review of the
Fund's compliance with the list of securities approved by the Shariah Advisory Council of the SC and also
monthly review of the invested securities by the Shariah Committee of the Fund.
Control of Risk
The EIM will take reasonable steps to ensure that the above potential risks are managed by:
a) actively monitoring the Fund’s asset allocation to ensure minimum impact from any adverse market
movements. They will ensure that the fixed income securities are carefully selected through site visits,
fundamental analysis and portfolio diversification. The External Investment Manager will also focus on the
credit quality of the fixed income securities, which have at least BBB rating or equivalent by RAM, MARC or
any other similar rating establishment.
b) investing the Fund over a wide range of fixed income securities which provides diversification across a
number of sectors and industries, minimising the risk not only of any single company’s securities becoming
worthless, but also of all holdings suffering uniformly adverse business conditions.
c) lengthening or shortening the Fund’s average maturity period of the fixed income investments (within the
Fund’s objective) in anticipation of changing interest rates.
d) selecting investments that are bank or government guaranteed or secured against assets to mitigate
default risk.
The EIM will seek to reduce all risks associated with the Fund by virtue of its experience, the analytical process
and by structuring a broadly diversified investment pool.
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Temporary Defensive Positions
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.
Investment Policy
The Fund invests in Islamic debt securities and money market instruments to meet its objectives of providing a
steady stream of profit income and potential long-term capital gains. Its debt securities investments consist of
government bonds, private debt securities, which are rated A3/A- or better by RAM and MARC, and money
market instruments, which will ensure a regular income yield to AMBDA.
Investment Strategy / Investment Mechanism
Islamic Debt Securities
The EIM will invest in a diversified portfolio of Islamic debt securities in order to maximise return within
acceptable risk parameters. Diversification is to be done across sectors and issuers (to reduce sector and credit
risk), and across duration (to reduce price risk). Depending on market conditions, the EIM will make the
necessary adjustments.
Preferred investments will be in securities that are undervalued relative to their ratings, potential credit rating
upgrade candidates, and situational issues with potential for improvement in the credit quality. In addition,
movements in the yield curve may uncover further opportunities.
The Fund is actively managed and the frequency of the Fund’s trading strategy is very much depending on
market opportunities.
Policy on Listed and Unlisted Securities
AMBDA is to concentrate on investing in quality listed/unlisted debt securities, which provide good 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 debt securities that are deemed to be fundamentally sound. In
addition, the portfolio also concentrates on securities that have attractive yields and trading opportunities.
The investment process for unlisted securities is similar to the process used for listed securities. 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 fixed income securities with
minimum credit ratings of P2 or MARC2 for short term papers or A3/A- for long term papers by RAM/MARC.
The External Investment Manager 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 superior selection which complements the objective of the portfolio. The
filtration process includes debt rating, financial ratio analysis, management quality assessment and structure
of a particular instrument.
Policy on Active and Frequency Trading of Securities
The Fund is actively managed and the frequency of the Fund’s trading strategy is very much depending on
market opportunities.
Asset Allocation
• Minimum 50% Maximum 98% in islamic debt securities
• Minimum 2% Maximum 50% in liquid assets and short-term Islamic money market instruments.
Benchmark
The performance of AMBDA will be benchmarked against the 12-month General Investment Account-rates of
commercial banks, which is obtainable from the Bank Negara website.
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3.2 Permitted Investments for the Conventional Funds
AMBSCTF
AMBEBTF
AMBETF
AMBVTF
AMBLTF Today
AMBLTF 2014
AMBDTF
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Securities in foreign markets where the SC has approved the
foreign markets for investment and the investment amount
has been approved by Bank Negara Malaysia respectively.
√
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Unlisted securities that have been approved by the SC for
listing and quotation on the Bursa Securities, which are
offered directly by the company approved for listing, by way of
private placement or on a tender basis.
√
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√
√
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AMBILTF
AMBBTF
√
Securities of companies listed on the Bursa Securities or any
other market considered as an eligible market.
Securities that are not traded in or under the rules of an
eligible market may include securities not listed or quoted on
a stock exchange but have been approved by the relevant
regulatory authority for such listing or quotation and are
offered directly to the Fund by the issuer.
AMBITF
AMBUTF
Unless otherwise prohibited by the Deed, the Funds are permitted to invest in the following: -
Unlisted securities that have been approved by the SC for
listing and quotation on the Bursa Securities (including ACE
Market) or any other market considered as an eligible market.
MGS, treasury bills, Bank Negara Malaysia certificates,
Government investment certificates
Malaysia currency balances in hand, Malaysia currency
deposits with commercial banks, finance companies,
investment banks and Bank Islam Malaysia Berhad including
negotiable certificates of deposit, bankers’ acceptances and
placement of money at call with investment banks.
√
√
√
√
√
Negotiable certificates of deposit, bankers’ acceptances and
placement of money at call with investment banks.
√
√
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Futures contracts traded in a future market of an exchange
company approved, or an exempt futures market declared by
the Minister under the CMSA and securities lending subject to
the provision in the Guidelines. Futures Contracts which
includes the KLCI futures & options contracts, KLIBOR futures
contracts, MGS futures contracts and any other futures
contracts as approved by the stock exchange from time to
time.
√
√
Component stocks of the FBM KLCI.
Cagamas bonds, unlisted loan stocks and corporate bonds that
are traded in the money market and either bank-guaranteed
or carrying at least BBB rating by RAM, MARC and private debt
securities that have an equivalent rating by RAM.
√
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Futures contracts, for hedging purposes only, traded in futures
market of an exchange approved under the CMSA.
√
√
Units or shares of collective investment schemes
√
√
Debentures comprising MGS, treasury bills, private debt
securities, asset-backed securities and money market
instruments (includes negotiable certificates of deposits, Bank
Negara bills, Cagamas bonds, repurchase agreements) and
other similar instruments that are available at the over-thecounter market from time to time.
Investments in warrants and derivatives as permitted by the
Guidelines.
Any other kinds of investment as permitted by the SC from
time to time.
AMBDTF
AMBLTF 2014
AMBLTF Today
AMBVTF
AMBETF
AMBEBTF
AMBSCTF
AMBILTF
AMBITF
AMBBTF
AMBUTF
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Note :
As for AMBUTF, AMBBTF, AMBITF, AMBEBTF, AMBETF, AMBVTF, AMBLTF Today and AMBLTF 2014, the Funds
have no intention to invest in securities listed on a foreign stock exchange at the moment.
As for AMBBTF, AMBSCTF, AMBETF, AMBVTF, and AMBEBTF the Funds have no intention to invest in futures
market at the moment.
Permitted Investments for PNB SIF
The Fund will invest primarily in permitted investments as stipulated in the Deed. These permitted
investments include:•
Structured Products
(i)
(ii)
(iii)
(iv)
•
Structured Products are investments with exposure linked to one or more assets such as global
equities, commodities, currencies, interest rates, indices or any other underlying(s) approved by the
Investment Committee.
All Structured Products chosen by the Fund will include 100% capital protection of the principal
invested upon maturity.
The EIM should ensure that the composition of the portfolio of the Fund is well diversified at all
times. Strategies on suitable Structured Products should be formulated and be based on the future
prospects of the underlying assets, prospect of the economic growth, political stability and future
market trends.
All investments in Structured Products must obtain prior approval from the Investment Committee.
PNB REIT
The EIM will invest in PNB REIT during the tenure of the Fund.
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•
Cash equivalents
(i)
(ii)
(iii)
Deposits with or Securities issued by financial institutions or any other parties approved by relevant
authorities from time to time.
Securities issued by financial institutions or any other parties subject to rating, where applicable,
and other restrictions as set out by the Investment Committee.
All deposits in financial institutions shall not exceed the stipulated exposure limit determined by the
Board of Directors of the EIM and/or the Investment Committee, as the case may be.
For the purpose of this paragraph, “Securities” include debentures, bonds, loans, floating rate
notes, promissory notes, certificates of deposits, commercial papers and other similar securities of
a debt nature.
•
Other Instruments
(i) The Fund may also invest in derivatives and futures contracts as defined in the Act, to assist with the
effective management of the Fund. However, these instruments may not be used to gear the Fund.
(ii) The Fund may invest in any other kind of investments agreed in writing by and between the Manager
and the Trustee and permitted by the SC from time to time .
AMBDI
AMBDA
Permitted Investments for Shariah Funds
AMBDY
3.3
Securities of companies listed on the Bursa Securities or any other market considered as an
eligible market.
√
√
Securities that are not traded in or under the rules of an eligible market may include securities
not listed or quoted on a stock exchange but have been approved by the relevant regulatory
authority for such listing or quotation and are offered directly to the Fund by the issuer.
√
√
Securities in foreign markets where the SC has approved the foreign markets for investment and
the investment amount has been approved by Bank Negara Malaysia respectively.
√
√
Unlisted securities that have been approved by the SC for listing and quotation on the Bursa
Securities.
√
√
Government investment certificates.
√
√
Government Investment Certificates and Cagamas bonds carrying at least BBB rating by RAM,
and/or MARC.
√
Mudharabah Investment, Islamic bonds and other money market instruments with local
commercial banks, finance companies and investment banks.
Unlisted securities that have been approved by the SC for listing and quotation on the Bursa
Securities (including ACE Market), which are offered directly by the company approved for listing,
by way of private placement or on a tender basis.
Units or shares of collective investment schemes provided they are relevant and consistent with
the objective of the Fund.
Islamic futures contracts traded in a futures market of an exchange company approved, or an
exempt futures market declared, by the Minister under the Act and securities lending subject to
the provision in the Guidelines. Participation of the Fund in futures contracts must be for hedging
purposes only.
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AMBDA
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Islamic PDS generally in the form of Islamic Corporate Bonds or Islamic Commercial Papers issued
by privately held companies or public listed corporations that are traded in eligible/money
markets. The minimum permissible credit rating for Private Debt Securities Investments is A3 or
A-.
√
√
√
Investments in warrants and derivatives as permitted by the Guidelines.
√
√
Any other kinds of investment as permitted by the SC from time to time.
√
√
Note:
The investments or investment powers set out above must comply with the Shariah Advisory Council of the SC
and the Shariah Committee of the Manager.
As for AMBDY and AMBDI, the Funds have no intention to invest in securities listed on a foreign stock
exchange at the moment.
As for AMBDA, the Fund has no intention to invest in futures market at the moment.
3.4 Investment Restrictions
The Funds of AMB are also subject to the following restrictions imposed by the Deed and/or the Guidelines:
Investment Exposure Limits
Unlisted Securities
The value of a Fund’s investments in unlisted securities must not exceed 10% of the Fund’s NAV.
Investment Spread Limits
Ordinary Shares
The value of a Fund’s investments in ordinary shares issued by any single issuer must not exceed 10% of the
Fund’s NAV.
Transferable Securities and Money Market Instruments
The value of a Fund’s investments in transferable securities and money market instruments issued by any
single issuer must not exceed 15% of the Fund’s NAV.
Placement of Deposits
The value of a Fund’s placement in deposits with any single institution must not exceed 20% of the Fund’s
NAV.
Derivatives
For investments in derivatives–
a)
the exposure to the underlying assets must not exceed the investments spread limits stipulated in this
schedule; and
b)
the value of a Fund’s over-the-counter (OTC) derivative transaction with any single counter-party
must not exceed 10% of the Fund’s NAV.
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Structured Products
The value of a Fund’s investments in structured products issued by a single counter-party must not exceed 15%
of the Fund’s NAV. This single counter-party limit is entirely waived if the counter-party has a minimum longterm rating by any domestic or global rating agency that indicates very strong capacity for timely payment of
financial obligations provided and the structured product has a capital protection feature.
Aggregate Value of a Fund’s Investments
The aggregate value of a Fund’s investments in transferable securities, money market instruments, deposits,
OTC derivatives and structured products issued by or placed with (as the case may be) any single
issuer/institution must not exceed 25% of the Fund’s NAV.
Collective Investment Scheme
The value of a Fund’s investments in units/shares of any collective investment scheme must not exceed 20% of
the Fund’s NAV.
Debentures (Applicable to Bond Fund)
The value of a bond/ fixed income Fund’s investments in debentures issued by any single issuer must not
exceed 20% of the Fund’s NAV.
The single issuer limit for debentures may be increased to 30% if the debentures are rated by any domestic or
global rating agency to be of the best quality and offer highest safety for timely payment of interest/profit and
principal. Where the single issuer limit is increased to 30%, the aggregate value of Fund’s investments in
derivatives, transferable securities, money market instruments, deposits, OTC derivatives and structured
products issued by or placed with (as the case may be) any single issuer/institution must not exceed 30% of
the Fund’s NAV.
Spread: Group of Companies
Group of Companies
The value of a Fund’s investments in transferable securities and money market instruments issued by any
group of companies must not exceed 20% of the Fund’s NAV.
Group of Companies (Applicable to Bond Fund)
The value of a bond/fixed income Fund’s investments in debentures issued by any group of companies must
not exceed 30% of the Fund’s NAV.
Investment Concentration Limits
Investment Concentration Limits for Transferable Securities (other than debentures)
A Fund’s investments in transferable securities (other than debentures) must not exceed 10% of the securities
issued by any single issuer.
Investment Concentration Limits for Debentures
A Fund’s investments in debentures must not exceed 20% of the debentures issued by any single issuer.
Investment Concentration Limits for Money Market Instruments
A Fund’s investments in money market instruments must not exceed 10% of the instruments issued by any
single issuer. (Not applicable to money market instruments that do not have a pre-determined issue size).
Investment Concentration Limits for Collective Investment Schemes
The Fund’s investments in collective investment schemes must not exceed 25% of the units/shares in any one
collective investment schemes.
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3.5
Exceptions and Exclusions Applicable to the Funds
The holding of an investment and/or other instrument by the Funds (whether by way of redemption,
exchange, conversion, rights, bonus, capital reorganisation or other forms of entitlement) may exclude any
entitlement accruing on the investment and/or instrument held. Notwithstanding, the entitlement should not
be exercised if the exercise results in the breach of any limit or restriction.
The limit and restrictions above do not apply to the Funds’ holding in securities that are issued by or
guaranteed by the Malaysian Government or Bank Negara Malaysia.
For a Fund whose principal objective is to track or replicate an index, the single issuer limit in ordinary shares
of 10% of the Fund’s NAV and the single group limit of 20% of the Fund’s NAV maybe exceeded provided that
the investment in any component securities does not exceed its respective weightings in the underlying index.
The investments restrictions and limits must be complied with at all times based on the most up-to-date value
of the Fund’s assets.
However, a 5% allowance in excess of any limit or restriction may be permitted where the limit or restriction is
breached through an appreciation or depreciation of the NAV of the Funds (whether as a result of an
appreciation or depreciation in value of the investments or as a result of repurchase of Units or payment made
from the Funds).
The EIM should not make any further acquisitions where the relevant limit is breached, and the EIM should
within a reasonable period of not more than 3 months from the date of the breach take all necessary steps and
actions to rectify the breach.
3.6
Zakat for Shariah Funds (AMBDY, AMBDI & AMBDA)
The Funds do not have an obligation to pay zakat. Therefore Unit Holders who wish to do so can contribute of
their own accord.
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4 Investment Process of the Funds
PNB SIF, AMBUTF, AMBBTF, AMBITF, AMBSCTF, AMBEBTF, AMBETF, AMBVTF,
AMBDY, AMBDI and AMBDA
The External Investment Manager adopts a combined top-down and bottom-up approach to investing. This
ensures that the allocation of fund is skewed to the financial asset class, which is expected to give greater
returns in a particular investment environment. For example, in a rising fixed income rates scenario, equities
usually do not perform well and therefore, exposure to this asset class is reduced. In contrast, when fixed
income rates are declining, exposure to equities is increased to maximise returns.
Primary research supported by secondary research is extensively used in making investment decisions. The
outlook of the economy determines how much exposure is given to each sector of the economy. Stocks for
each sector are selected based on investment criteria such as Price Earning to Growth (PEG) ratio,
management quality, profitability, growth prospects, financial strength and dividend yield. Bonds for each
sector are selected based on investment criteria such as yield to maturity bond duration, credit quality,
profitability, growth prospects, financial strength and structure of the bond. Technical analysis is also used but
only as a guide to time the entry into and exit from the investments. This is because sentiment plays a role in
determining the market direction regardless of the fair valuation of the market.
Global Economic Outlook
Regional Economic Outlook
Malaysian Economy Analysis
Sector Allocation
Securities Selection
We believe superior long-term investment performance can be achieved by exploiting inefficiencies in capital
markets through rigorous and intensive research within a disciplined investment process.
AMBILTF
The Fund aims at replicating the performance of the FBM KLCI as closely as possible. The Fund will invest in a
broad spectrum of stocks that make up the FBM KLCI. The Fund adopts a passive management philosophy
whereby the Fund’s weightings will be adjusted accordingly to ensure close performance with the FBM KLCI.
This means that the External Investment Manager does not conduct extensive company research but conduct
extensive quantitative analysis on the FBM KLCI before buying or selling transactions are executed.
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AMBLTF Today and AMBLTF 2014
Our activities are targeted towards superior equity and fixed income performance over all time periods. Our
growth style of equity selection is driven by fundamental research approach as well as comparative valuation
analysis. Through our internal research team we identify the leaders in growing industries and invest in
companies that demonstrates: • Large and growing market opportunity for their products and services
• Compelling business strategies with robust track records and performances
• Superior management team who can execute the company’s growth plans
We diversify all our equity portfolios by sector, industry and country, and our fixed income portfolios by
issuers, sector, volatility, maturity and credit quality rating. Individual stock selection is based on those issues
that we believe will perform best in the forthcoming economic environment. Our time selection for stocks is 3
to 5 years with adjustments made if short-term conditions warrant. Issues that do not meet our criteria are
sold and replace with more attractive investments.
Our investment style has consistently generate excess return in a risk-controlled manner. Our focus is not just
on excess return per fund but the quality and consistence of our value add, such as achieving steady returns
without taking excessive tracking error or market risk.
AMBDTF
The External Investment Manager adopts an absolute return investment philosophy, and thus employs active
tactical asset allocation strategies where necessary. The ability to target consistent positive returns is the
cornerstone of our investment approach and is borne through the combination of experience, focus and
knowledge. The External Investment Manager ensures that it has a robust investment process and that its
investment personnel are equipped with the necessary experience and knowledge to produce consistent and
reasonable returns. Focus on markets and strategies will also aid in enhancing consistency of performance.
Generally, the External Investment Manager’s approach to investments is based on investment themes. The
intention is to identify multi-year themes and sector trends, and then employing a bottom-up approach in
identifying the best stock ideas within that theme. Excess returns or alpha, is generated through the early
identification of such themes as well as through primary research of under-researched stocks, while with wellcovered stocks, the External Investment Manager’s value-add is to challenge the prevailing consensus in
arriving at our investment decision. As well, quantitative and qualitative screens are both employed to
determine the attractiveness of investment ideas.
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4.1
Investment Process of the Funds
PNB SIF, AMBUTF, AMBBTF, AMBITF, AMBSCTF, AMBEBTF, AMBVTF and
AMBDTF
Investment Committee
The External Investment
Manager
Investment
Research Team
- Research and
make investment
recommendations.
- Review investment policies an investment
portfolio.
- Ensure objectives and guidelines are met.
- Review guidelines for asset allocation and
portfolio strategy;
- Review market outlook set asset allocation
strategy, portfolio construction, stock as
well as bond selection and structured
products (for PNB SIF only).
Designated Portfolio
Manager
- Ensure that the
investment policy
and strategy of the
Fund is adhered to.
Dealing
- Execute investment
transactions as
recommended by
the designated
Portfolio Manager.
The investment process in the management of a unit trust portfolio involves the following: (1) Setting up of investment objective;
(2) Establishing an investment policy;
(3) Selecting an investment strategy;
(4) Asset allocation;
(5) Stock, bond selections and structured products (for PNB SIF only); and
(6) Measuring and evaluating performance
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AMBILTF
Clients Investment Objective
Type of Fund : Index-linked Fund
Performance Appraisal
& Review (Equity)
-
Establish Parameters
(Investment Mandates)
Comparing performance against
the benchmark (FBM KLCI).
Monitoring performance at least
once a week.
-
Investment Guidelines
and restrictions.
Investment Committee
Compliance
-
Monitoring of compliance with the
investment objectives and mandates.
Portfolio Management
& Risk Management
(Equity)
-
Asset Allocation
Quantitative analysis on
benchmarking.
Portfolio modeling.
Realignment of portfolio through
increase or decrease in weighting.
Execution of transactions.
Monitoring of the portfolio.
- Liquidity not more than 10%.
Stock Selection
-
Component stocks of FBM KLCI.
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AMBETF
Function
Committee
Ethical Panel of Advisors
- Review investment policies and
investment portfolio.
- Ensure objectives and guidelines are
met.
Investment Committee
External Investment Manager
Investment Research
Team
- Research and
make investment
recommendations
- Advise the Manager on ethical issues to
ensure proper compliance with ethical
principles of the Fund.
- Set investment guidelines in compliance
with ethical principles.
- Monitor the Fund’s activities to ensure
adherence to the above Guidelines.
- To formally meet at least once every 3
months to review the Fund’s
compliance towards the ethical
principles.
- To prepare a report in the Manager’s
annual reports.
- Responsible for scrutinizing the
compliance and transactions report to
ensure investments are in line with
ethical principles.
Designated Portfolio
Manager
- Review guidelines for asset allocation
and portfolio strategy;
- Review market outlook, set asset
allocation
strategy,
portfolio
construction and stock as well as bond
selection.
- Ensure that the
investment policy and
strategy of the Fund is
adhered to.
Dealing
- Execute investment
transactions as
recommended by the
designated Portfolio
Manager.
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AMBETF – DEVIATION PROCEDURE FLOWCHART
Deviation from the Fund’s ethical objectives detected (Infringement is publicly known
or incontestable)
Deviation Report issued
Meeting between External Investment Manager & Ethical Panel of Advisors to
ascertain extent of infringement
Possible actions to be undertaken upon consensus:
• Voice concerns to the company’s management
• Reduction in portfolio holdings
• Removal of company from portfolio with a classification of the stock as not
investable over 5-year period
• Duration for above actions is maximum 2 years
• If the infringement is serious, the Fund will proceed to directly remove company
from its portfolio. (Maximum time frame of 6 months)
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AMBLTF Today and AMBLTF 2014
EQUITY INVESTMENT STRATEGY & PROCESS
The following investment strategy & process will be adopted: -
Investment Process
Macro Economic Analysis
SECTORAL ANALYSIS
Industry analysis
Legislation changes affecting industries
PRE-SELECT STOCK UNIVERSE
Fundamental valuation
Relative comparison
IN-DEPTH ANALYSIS
Good growth prospects
Leader in the industry
Strong/Improving balance sheet
New technology/manufacturing process
Strong cash flows
EQUITY SELECTION & PORTFOLIO CONSTRUCTION
Consider liquidity, market capitalisation
Suitability for time horizon of Funds
Constant monitoring after purchase
Sell where fundamentals deteriorated or do not meet
investment criteria.
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FIXED INCOME STRATEGY & PROCESS
The following investment strategy & process will be adopted: -
Investment Process
Macro Economic Analysis
DETERMINE INTEREST RATE CYCLE
Policy changes affecting interest rates
Anticipate changes in yield curve
SECTORAL ANALYSIS
Industries with stable earnings
Risks or opportunities affecting different sectors
IN-DEPTH ANALYSIS
Cash flows to meet coupon & principal repayments
Availability of security/guarantee
Strong/Improving balance sheet
Corporate governance
BOND SELECTION & PORTFOLIO CONSTRUCTION
Consider liquidity, size of issue
Rating to be at least investment grade
Suitability for time horizon of Fund vs. interest rate cycle
Constant monitoring after purchase
Sell where fundamentals deteriorated or do not meet
investment criteria
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AMBDY, AMBDI and AMBDA
Committee
Function
Shariah Committee
- Advise and interpret issues of Islamic nature.
- Set investment guidelines in compliance with Shariah
Principles.
- Monitor the Fund’s activity to ensure adherence to the above
guidelines.
- To formally meet at least once every 3 months to review the
Fund’s compliance towards the shariah principles.
- To prepare a report in the Manager’s annual report.
- Responsible for scrutinizing the compliance and transactions
report to ensure investments are in line with shariah principles.
Investment Committee
- Review investment policies and investment portfolio.
- Ensure objectives and guidelines are met.
The External Investment
Manager
- Review guidelines for asset allocation and portfolio strategy.
- Review market outlook, set asset allocation strategy, portfolio
construction and stock as well as bond selection.
Investment
Research Team
- Research and
make investment
recommendations.
Designated
Portfolio Manager
- Ensure that the
investment policy
and strategy of the
Fund is adhered to.
Dealing
- Execute investment transactions
as recommended by the
designated Portfolio Manager.
The investment process in the management of a unit trust portfolio involves the setting up of investment
objective, establishing an investment policy, selecting an investment strategy, asset allocation, stock and bond
selections; and measuring and evaluating performance.
Cleansing Process for the Funds
The Shariah Committee Members of the Funds will render the relevant securities to be disposed of
immediately upon the security being reclassified Shariah non-compliant by the Shariah Advisory Council of the
SC, should the market value exceeds the original investment cost on the announcement day. For the purpose
of cleansing of the Funds, any capital gain arising from the disposal of the Shariah non-compliant securities
made at the time of the announcement day as determined by the SC, can be kept. However, any excess capital
gain derived from the disposal after the announcement day as determined by the SC, at a market price that is
higher than the closing price on the announcement day as detemined by the SC, should be channeled to
charitable bodies.
On the other hand, the Funds are allowed to hold investment in the Shariah non-compliant securities if the
market price of the said securities is below the original investment costs. It is also permissible for the Funds to
keep the dividends received during the holding period until such time when the total amount of dividends
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received and the market value of the Shariah non-compliant securities held equal the original investment cost.
At this stage, the funds are advised to dispose of their holding.
In addition, during the holding period, the Funds are allowed to subscribe to:
a) any issue of new securities by a company whose Shariah non-compliant securities are held by the Funds, for
example rights issues, bonus issues, special issues and warrants (excluding securities whose nature is
Shariah non-compliant e.g. irredeemable convertible unsecured loan stock (ICULS)); and
b) securities of other companies offered by the company whose Shariah non-compliant securities are held by
the Funds, on condition that the Funds expedite the disposal of the Shariah non-compliant securities.
For securities of other companies (as stated in (b) above), they must be Shariah-compliant securities.
The investment portfolio of the Funds comprises of securities which have been approved by the SC as
Shariah compliant and classified as Shariah compliant by the Shariah Advisory Council (SAC) of the SC.
4.2
Bases of Valuation of Investments
PNB SIF
(a) Structured Products Valuation
The valuation of the Structured Products will be done twice a week. As a countercheck on the fair
valuation provided by DBMB, DBMB’s pricing will be verified by the Manager, the EIM or any independent
party and any differences exceeding tolerance levels as may be determined by the Manager impacting the
NAV by more than a pre-defined level will be investigated by the Fund.
DBMB will provide, subject to applicable terms, information on the present value, i.e. marked-to-market
of the relevant Structured Product(s) to the Fund twice a week.
(b) PNB REIT Valuation
Valuation of Real Estate-Related Assets and Non-Real Estate-Related Assets
PHNB, the manager of PNB REIT must carry out, at least once each Business Day or such other frequency
as may be prescribed under the REITs Guidelines, the valuation of Real Estate-Related Assets and NonReal Estate-Related Assets in order to facilitate the valuation of the Fund.
(c) Listed securities will be valued based on the last done market price of the respective exchanges.
(d) Unlisted bonds denominated in Ringgit Malaysia are stated at the indicative market value quoted by a
bond pricing agency (BPA) registered with the SC. Where the Manager is of the view that the price quoted
by BPA for a specific bond differs from the “market price” by more than 20 basis points, the manager or
its fund management delegate may use the “market price”, provided that the manager or its fund
management delegate :(a) records its basis for using a non-BPA price;
(b) obtains necessary internal approvals to use the non-BPA price; and
(c) keeps an audit trail of all decisions and basis for adopting the “market yield”
(e) Other unlisted bonds, the fair value by reference to the average indicative yield quoted by three
independent and reputable institutions.
(f)
Investments such as bank bills and deposits placed with banks or other financial institutions are valued
each day by reference of the nominal value and the accrued interest thereon for the relevant period.
(g) Investments in futures contracts will be “marked to market” at the end of each trading day.
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AMBUTF, AMBBTF, AMBITF, AMBILTF, AMBSCTF, AMBEBTF, AMBETF, AMBVTF, AMB LTF Today,
AMBLTF 2014, AMBDY, AMBDI and AMBDA
The Funds shall adopt the following bases of valuation of investments prescribed in the Deeds and the
Guidelines:(a)
Listed securities will be valued based on the last done market price of the respective exchanges.
(b) Where no market values are publicly available, including in the event of a suspension in the quotation of
the securities for a period exceeding 14 days, or such shorter period as agreed by the trustee or where
the use of quoted market values is not appropriate, or where the use of quoted market values is not
appropriate, investments shall be valued at fair value, as determined in good faith by the Manager or its
fund management delegate, which have been verified by the auditor and approved by the Trustee.
(c) Unlisted bonds denominated in Ringgit Malaysia are stated at the indicative market value quoted by a
bond pricing agency (BPA) registered with the SC. Where the Manager is of the view that the price quoted
by BPA for a specific bond differs from the “market price” by more than 20 basis points, the manager or
its fund management delegate may use the “market price”, provided that the Manager or its fund
management delegate :(a) records its basis for using a non-BPA price;
(b) obtains necessary internal approvals to use the non-BPA price; and
(c) keeps an audit trail of all decisions and basis for adopting the “market yield”
(d)
Other unlisted bonds, the fair value by reference to the average indicative yield quoted by three
independent and reputable institutions.
(e)
Investments such as bank bills and deposits placed with banks or other financial institutions are valued
each day by reference to the nominal value and the accrued interest/profit thereon for the relevant
period.
(f)
Malaysian currency-denominated cash balances in hand, deposits placed with banks or other financial
institutions and placement of money at call with investment bank are valued each day by reference to
the value of such investments and the profits accrued thereon for the relevant period.
(g)
Investments such as Banker Acceptances, Government and/or any other government-related agencies
Investment Issues (GII), Bank Negara Negotiable Notes, Cagamas Notes, Negotiable Certificate of
Deposit, are valued each day by reference to the value of such investments and the interest/profits
accrued thereon for the relevant period.
(h)
Units in listed collective investment schemes will be valued at last done price and unlisted collective
investment schemes will be valued based on the last published repurchase price.
(i)
Exchange traded financial derivatives will be “marked to market” at the close of each trading day. In
respect of over-the-counter derivatives, the EIM has access to resources of specialists to verify the
reasonableness of the prices quoted by the issuer whenever the Manager considers it necessary to do so.
AMBUTF, AMBBTF, AMBITF, AMBILTF, AMBSCTF, AMBEBTF, AMBETF, AMBVTF, AMBDY, AMBDI and AMBDA
The respective EIM calculates the value of investment of the Funds at the end of each Business Day.
AMBLTF Today and AMBLTF 2014
The EIM calculates the value of investment of the equity portion of the Funds at the end of each Business Day,
whereas the Manager calculates the value of investment of the fixed income portion of the Funds at the end of
each Business Day.
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AMBDTF
The Fund shall adopt the following bases of valuation of investments prescribed in the Deeds and the
Guidelines:(a) Listed securities will be valued based on the last done market price of the respective exchanges.
(b) Where no market values are publicly available, including in the event of a suspension in the quotation of
the securities for a period exceeding 14 days, or such shorter period as agreed by the trustee or where
the use of quoted market values is not appropriate, or where the use of quoted market values is not
appropriate, investments shall be valued at fair value, as determined in good faith by the Manager or its
fund management delegate, which have been verified by the auditor and approved by the Trustee.
(c) Unlisted bonds denominated in Ringgit Malaysia are stated at the indicative market value quoted by a
bond pricing agency (BPA) registered with the SC. Where the Manager is of the view that the price quoted
by the BPA for a specific bond differs from the “market price” by more than 20 basis points, the manager
or its fund management delegate may use the “market price”, provided that the Manager or its fund
management delegate :(a) records its basis for using a non-BPA price;
(b) obtains necessary internal approvals to use the non-BPA price; and
(c) keeps an audit trail of all decisions and basis for adopting the “market yield”
(d) Other unlisted bonds, the fair value by reference to the average indicative yield quoted by three
independent and reputable institutions.
(e) Investments such as bank bills and deposits placed with banks or other financial institutions are valued
each day by reference of the nominal value and the accrued interest thereon for the relevant period.
(f)
Malaysian currency-denominated cash balances in hand, deposits placed with banks or other financial
institutions and placement of money at call with investment bank are valued each day by reference to
the value of such investments and the profits accrued thereon for the relevant period.
(g)
Investments such as Banker Acceptance, Government and/or any other government-related agencies
Investment Issues (GII), Bank Negara Negotiable Notes, Cagamas Notes, Negotiable Certificate of
Deposit, are valued each day by reference to the value of such investments and the interest/profits
accrued thereon for the relevant period.
(h)
Units in listed collective investment schemes will be valued at last published NAV per unit or other
appropriate method as determined by the Manager and approved by the Trustee and unlisted collective
investment schemes will be valued based on the last published repurchase price.
(i)
Investment in futures contracts e.g. FTSE Bursa KLCI futures contracts, KLIBOR futures contracts, MGS
futures contract traded on Bursa Malaysia Derivatives will be “marked to market” at the end of each
trading day.
(j)
Exchange traded financial derivatives will be “marked to market” at the close of each trading day. In
respect of over-the-counter derivatives, the EIM has access to resources of specialists to verify the
reasonableness of the prices quoted by the issuer whenever the Manager considers it necessary to do so.
The Manager delegates to the Trustee the function of calculating the Net Asset Value and the value of
investment of the Fund after the end of the Business Day. The foreign investment will be valued based on the
last done prices at the close of the respective foreign exchanges.
All foreign investment will be converted into ringgit based on the bid exchange rate quoted by Reuters.
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4.3
Policy on Gearing and Liquid Assets
There shall be at all times a level of sufficient liquid assets in the Funds to pay for the repurchase of Units. The
Funds are allowed to borrow cash for the purpose of meeting repurchase requests for Units. However the
Manager should ensure that the Funds’ cash borrowing is only on a temporary basis and the borrowings are
not persistent. The borrowing period should also not exceed 1 month and the aggregate borrowings of the
Funds should not exceed 10% of the respective Funds’ NAV at the time it is incurred. All Funds may only
borrow from financial institutions. Except for securities lending provided by the Guidelines, none of the cash or
investments of the Funds may be lent. Further, the Funds may not assume, guarantee, endorse or otherwise
become directly or contingently liable for or in connection with any obligation or indebtedness of any person.
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5 Funds’ Performance
PNB Structured Investment Fund
Average Total Return of PNB SIF for the Financial Years Ended July 31, 2010
1- Year
Since Launch
PNB SIF (%)
6.89
5.44
Benchmark (%)
2.59
2.93
Annual Total Return for the for the Financial Years Ended July 31,
2010
2009
PNB SIF (%)
6.89
5.03
Benchmark (%)
2.59
3.10
1-Year Fund Performance Review
The fund’s outperformance as compared to its benchmark was attributed to the diversification strategy adopted by
the fund throughout the year. The fund was invested across 5 different asset classes, namely PNB REIT, structured
products, equity, fixed income and cash equivalent instruments. The mixed nature of the investment portfolio
ensured that the NAV was above par throughout the whole year, as no one asset class dominated the NAV
performance of the fund.
Distribution as at July 31,
2010
May 12, 2008 (date of launch) to July 31, 2009
Gross Distribution per Unit (sen)
3.75
3.25
Net Distribution per Unit (sen)
3.75
3.25
2010
May 12, 2008 (date of launch) to July 31, 2009
33.04%
30.35%
19.17%
1.96%
15.48%
37.20%
30.60%
Nil
Nil
32.20%
Distribution is in the form of cash.
Asset Allocation as at July 31,
Structured Products
PNB REITs
Quoted investment
Unquoted Fixed Income Securities
Money Market and Others
The fund continued to be invested in a diversified portfolio of PNB REIT, structured products and money market
instruments for financial year end July 31, 2010. However, the large decrease in allocation to money market
instruments is due to the addition of equities in August 2009. The fund included equity in its investment portfolio as
it foresees the equity asset class to be a main beneficiary of the world economic recovery. The addition of equities
helped to further diversify the fund, and helped the fund in posting a steady growth in its NAV, generating income
and outperforming its benchmark.
Portfolio Turnover Ratio (PTR) as at July 31,
PTR (times)
2010
May 12, 2008 (date of launch) to July 31, 2009
0.39
0.36
There was no significant change in the portfolio turnover rate.
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AMB Unit Trust Fund
Average Total Return of AMBUTF for the Financial Years Ended June 30, 2010
1- Year
3- Year
5- Year
10- Year
AMBUTF (%)
22.75
(2.35)
5.84
4.05
Benchmark (%)
19.79
(0.65)
7.52
4.48
Annual Total Return for the Financial Years Ended June 30,
2010
AMBUTF (%)
Benchmark (%)
2009
2007
2006
2005
2004
2003
2002
2001
22.75 (12.75) (13.17)
31.98
7.68
(4.17)
7.85
(1.67)
30.62
(16.50)
19.79
42.94
3.01
8.35
18.48
(4.62)
22.34
(28.84)
(9.33)
2008
(10.83)
1-Year Fund Performance Review
The Fund outperformed the benchmark mainly due to asset allocation and careful stock selection. For most of the
earlier half of the period under review, the Fund’s exposure to equities was low as the Manager was cautious due
to uncertainties in the global economy and financial markets. Subsequently, the Manager increased its weighting in
equities as Organisation for Economic Co-operation and Development (OECD) leading indicators showed signs of
the global economy bottoming whilst there was a clear improvement in corporate earnings.
The existing benchmark came into force on November 28, 2008. Previously the benchmark was 100% Kuala Lumpur
Composite Index. The benchmark was revised to better reflect the Fund’s asset allocation policy, strategy and
investment objective.
Distribution as at June 30,
2010
2009
2008
Gross Distribution per Unit (sen)
Nil
Nil
Nil
Net Distribution per Unit (sen)
Nil
Nil
Nil
2010
2009
2008
Equities
79.68%
60.97%
75.50%
Liquid Assets and Others
20.32%
39.03%
24.50%
Asset Allocation as at June 30,
From second quarter 2009 to third quarter 2009, the Fund’s exposure to equities was low as the EIM was cautious
due to uncertainties in the global economy and financial markets. Subsequently, the EIM increased its weighting in
equities as several key leading economic indicators were showing signs of bottoming out. The EIM also focused on
several investment themes including economic recovery, beneficiaries of pump priming and mergers & acquisitions.
Portfolio Turnover Ratio (PTR) as at June 30,
PTR (times)
2010
2009
2008
0.53
0.78
0.55
The lower PTR in 2010 was due to fewer transactions done during that financial year.
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AMB Balanced Trust Fund
Average Total Return of AMBBTF for the Financial Years Ended September 30, 2009
1- Year
3- Year
5- Year
10- Year
AMBBTF (%)
11.36
4.18
2.77
3.50
Benchmark (%)
9.98
5.52
5.29
5.70
Annual Total Return for the Financial Years Ended September 30,
2009
AMBBTF (%)
Benchmark (%)
2008
2007
2006
2005
2004
2003
2002
2001
2000
11.36 (16.86)
22.16
4.30
(3.19)
(1.59)
13.37
11.81
(4.19)
2.11
9.98
14.84
4.15
7.09
11.24
10.55
4.30
(6.26)
5.88
(6.95)
1-Year Fund Performance Review
For the period under review, the Fund’s NAV per unit increased to RM0.6223 as at 30 September 2009 from
RM0.5588 as at 30 September 2008, resulting in a gain of 11.36%. The Fund underperformed its benchmark by
1.61% due to a relatively low level of equity allocation during most of the financial year as well as the Fund’s high
holdings in defensive sectors such as Utilities, Telecommunications and Consumer Products.
The existing benchmark came into force on July 30, 2009. Previously the benchmark was 50% of the performance of
Kuala Lumpur Composite Index, 40% of the 5-year Malaysian Government Securities and 10% of the 3-month Kuala
Lumpur Interbank Offered Rates. The benchmark was revised to better reflect the Fund’s asset allocation policy,
strategy and investment objective.
Distribution as at September 30,
2009
2008
2007
Gross Distribution per Unit (sen)
Nil
Nil
Nil
Net Distribution per Unit (sen)
Nil
Nil
Nil
2009
2008
2007
Equities
55.70%
46.39%
55.17%
Fixed Income Securities
35.92%
33.27%
28.29%
Liquid Assets and Others
8.38%
20.34%
16.54%
Asset Allocation as at September 30,
The increase in equity from 46.39% to 55.70% was due to the increase in growth and cyclical stocks to capture the
rising market, which have also contributed positively to the portfolio performance. The reduction in cash was due
to overweight on high grade corporate bonds, which caused the increase in the allocation of fixed income
securities.
Portfolio Turnover Ratio (PTR) as at September 30,
PTR (times)
2009
2008
2007
1.42
0.76
0.72
The Fund is experiencing higher PTR over the years as a result of higher trading activities undertaken by the Fund.
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AMB Income Trust Fund
Average Total Return of AMBITF for the Financial Years Ended June 30, 2010
1- Year
3- Year
5- Year
10- Year
AMBITF (%)
8.89
(6.67)
(2.95)
1.20
Benchmark (%)
2.54
3.15
3.38
3.65
Annual Total Return for the Financial Years Ended June 30,
2010
AMBITF (%)
8.89
Benchmark (%)
2.54
2009
2008
(12.27) (14.95)
3.22
3.71
2007
2006
2005
2004
2003
2002
2001
2.95
2.94
7.60
4.52
6.51
4.77
4.26
3.73
3.71
3.76
3.76
3.92
4.12
4.31
1-Year Fund Performance Review
For the period under review, the Fund gave a return of 8.89% vis a vis benchmark return of 2.57%. The positive
performance was due to a combination of our overweight position in selected corporate bonds which performed
well as well as recovery in value of previously defaulted bonds.
The existing benchmark came into force on November 28, 2008. Previously the benchmark was Maybank 12-month
fixed deposit rate. The benchmark was revised to better reflect the Fund’s asset allocation policy, strategy and
investment objective.
Distribution as at June 30,
2010
2009
2008
Gross Distribution per Unit (sen)
Nil
Nil
Nil
Net Distribution per Unit (sen)
Nil
Nil
Nil
2010
2009
2008
Fixed Income Securities
88.65%
70.01%
86.45%
Liquid Assets and Others
11.35%
29.99%
13.55%
Asset Allocation as at June 30,
The Fund’s investment in corporate bonds increased from 70.01% to 88.65%. This was in line with the EIM’s
strategy to actively trade in liquid bonds and to always stay highly invested in quality credits.
Portfolio Turnover Ratio (PTR) as at June 30,
PTR (times)
2010
2009
2008
0.74
0.86
0.31
There was no significant change in the portfolio turnover rate.
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AMB Index-Linked Trust Fund
Average Total Return of AMBILTF for the Financial Years Ended October 31, 2009
1- Year
3- Year
5- Year
Since Launch
AMBILTF (%)
46.29
10.60
10.20
9.18
Benchmark (%)
43.96
7.95
7.61
6.33
Annual Total Return for the Financial Year Ended October 31,
2009
2008
2007
2006
2005
2004
2003
AMBILTF (%)
46.29
(34.25)
44.20
9.35
7.88
9.94
24.02
Benchmark (%)
43.96
(38.83)
43.04
8.51
5.76
5.39
23.89
1-Year Fund Performance Review
During the financial year, the equity market suffered tremendous volatility as the global macro outlook worsened.
Being an index tacking fund, the fund suffered from the height of the subprime crisis and the rapid deteriorating
economy outlook in the fourth quarter of 2008. However, the fund continued to outperform the benchmark over a
long term vis-à-vis the dividend yield received and reinvested into the market.
Distribution as at October 31,
2009
2008
2007
Gross Distribution per Unit (sen)
9.30
Nil
2.20
Net Distribution per Unit (sen)
8.88
Nil
1.29
2009
2008
2007
Equities
110.17%
97.09%
105.54%
Liquid Assets and Others
(10.17)%
2.91%
(5.54)%
Distribution is in the form of reinvestment.
Asset Allocation as at October 31,
From November 1, 2008 to October 31, 2009, the equity market suffered tremendous volatility as the global
macro outlook worsened. Being an index tracking fund, the weighting assigned to each stock in the portfolio must
replicate the movement of the FBM KLCI. It is imperative for the Fund to be rebalanced as deemed necessary to
track the FBM KLCI movement effectively.
Portfolio Turnover Ratio (PTR) as at October 31,
PTR (times)
2009
2008
2007
0.36
0.27
0.46
The increase in the PTR over the financial period years as a result of higher trading activities undertaken by the
Fund.
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AMB SmallCap Trust Fund
Average Total Return of AMBSCTF for the Financial Years Ended July 31, 2010
1- Year
3- Year
5-Year
Since Launch
AMBSCTF (%)
18.70
(2.16)
2.39
(2.36)
Benchmark (%)
19.61
1.75
14.42
9.43
Annual Total Return for the Financial Years Ended July 31,
2010
2009
2008
2007
2006
2005
AMBSCTF (%)
18.70
(1.72)
19.72
28.88
(6.79)
(16.39)
Benchmark (%)
16.63
7.46
(18.01)
74.92
6.49
2.68
1-Year Fund Performance Review
The Fund outperformed the benchmark mainly due to asset allocation and careful stock selection. The Fund’s
exposure to equities was high as the OECD leading indicators showed signs of the global economy bottoming whilst
there was a clear improvement in corporate earnings and economic climate.
The existing benchmark came into force on November 28, 2008. Previously the benchmark was FTSE Bursa Malaysia
EMAS Index. The benchmark was revised to better reflect the Fund’s asset allocation policy, strategy and
investment objective.
Distribution as at July 31,
2010
2009
2008
Gross Distribution per Unit (sen)
Nil
Nil
Nil
Net Distribution per Unit (sen)
Nil
Nil
Nil
2010
2009
2008
Equities
80.49
66.08%
68.79%
Liquid Assets and Others
19.51
33.92%
31.21%
Asset Allocation as at July 31,
The Fund was positioned to be overweight in equities as several key leading economic indicators were showing
signs of bottoming out. In addition, the economic climate was improving and corporate earnings were recovering.
The EIM also focused on several investment themes including economic recovery, beneficiaries of pump priming
and mergers & acquisitions. In addition, the EIM specifically selected growing small market capitalization
companies with niche positioning, superior margins and global reach.
Portfolio Turnover Ratio (PTR) as at July 31,
PTR (times)
2010
2009
2008
0.77
0.92
0.90
There was no significant change in the portfolio turnover rate.
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AMB Enhanced Bond Trust Fund
Average Total Return of AMBEBTF for the Financial Years Ended March 31, 2010
1- Year
3- Year
5-Year
Since Launch
AMBEBTF (%)
4.64
(8.60)
(3.49)
(1.98)
Benchmark (%)
3.25
3.84
4.21
4.00
Annual Total Return for the Financial Years Ended March 31,
2010
2009
2008
2007
2006
2005
AMBEBTF (%)
4.64
1.02
(29.80)
2.79
5.76
1.08
Benchmark (%)
3.25
4.85
3.45
5.38
4.12
3.04
1-Year Fund Performance Review
For the period under review, the Fund gave a return of 4.64% vis a vis benchmark return of 3.22%. The positive
performance was primarily due to our overweight position in corporate bonds versus Malaysian Government
Securities.
The existing benchmark came into force on July 30, 2009. Previously the benchmark was 85% of the 5-year
Malaysian Government Securities and 15% of the 3-month Kuala Lumpur Interbank Offered Rates. The benchmark
was revised to better reflect the Fund’s asset allocation policy, strategy and investment objective.
Distribution as at March 31,
2010
2009
2008
Gross Distribution per Unit (sen)
Nil
Nil
Nil
Net Distribution per Unit (sen)
Nil
Nil
Nil
2010
2009
2008
Fixed Income Securities
89.86%
88.82%
89.59%
Equities
5.82%
1.94%
3.31%
Liquid Assets and Others
4.32%
9.24%
7.10%
Asset Allocation as at March 31,
The increase in the Fund’s equity exposure to 5.82% from 1.94% was in line with the EIM’s positive view on the
market. As such, some construction stocks was bought during the period. The EIM continued to improve the overall
credit quality of the Fund’s portfolio by reinvesting the cash in high grade corporate bonds.
Portfolio Turnover Ratio (PTR) as at March 31,
PTR (times)
2010
2009
2008
0.54
0.64
0.73
There was no significant change in the portfolio turnover rate.
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AMB Ethical Trust Fund
Average Total Return of AMBETF for the Financial Years Ended August 31, 2009
1- Year
3- Year
5-Year
Since Launch
AMBETF (%)
17.51
22.94
15.79
16.35
Benchmark (%)
10.57
11.39
9.70
11.89
Annual Total Return for the Financial Years Ended August 31,
2009
2008
2007
2006
2005
2004
AMBETF (%)
17.51
(1.50)
54.01
6.94
3.86
0.84
Benchmark (%)
10.57
(13.14)
39.13
6.37
4.48
8.18
1-Year Fund Performance Review
The Fund outperformed the benchmark mainly due to asset allocation. For the first half of the period under review,
the manager adopted a defensive strategy and kept the equity exposure low due to macro uncertainties.
Subsequently, the Fund increased its equity exposure in the second half of the period under review as valuations
became attractive and leading economic indicators were showing signs of bottoming.
Distribution as at August 31,
2009
2008
2007
Gross Distribution per Unit (sen)
9.03
11.70
3.50
Net Distribution per Unit (sen)
8.88
11.10
2.86
2009
2008
2007
Equities
76.71%
63.96%
76.92%
Liquid Assets and Others
23.29%
36.04%
23.08%
Distribution is in the form of reinvestment.
Asset Allocation as at August 31,
In 2008, the EIM adopted a defensive strategy and kept the equity exposure low due to macro incertainties.
Hence, during September 1, 2008 to August 31, 2009, the Fund’s holdings in cyclical stocks were reduced and
focused on defensive stocks with above average dividend yield. In second quarter 2009, the Fund increased its
equity exposure as valuations became attractive and leading economic indicators were showing signs of
bottoming.
Portfolio Turnover Ratio (PTR) as at August 31,
PTR (times)
2009
2008
2007
1.28
1.43
1.96
There was no significant change in the portfolio turnover rate.
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AMB Value Trust Fund
Average Total Return of AMBVTF for the Financial Years Ended August 31, 2009
1- Year
3- Year
5-Year
Since Launch
AMBVTF (%)
17.20
24.34
17.66
17.65
Benchmark (%)
6.70
7.01
7.23
9.91
Annual Total Return for the Financial Years Ended August 31,
2009
2008
2007
2006
2005
2004
AMBVTF (%)
17.20
0.47
63.96
8.76
7.21
1.66
Benchmark (%)
6.70
(13.65)
32.96
4.88
10.34
11.39
1-Year Fund Performance Review
The Fund outperformed the benchmark mainly due to asset allocation. For the first half of the period under review,
the manager adopted a defensive strategy and kept the equity exposure low due to macro uncertainties.
Subsequently, the Fund increased its equity exposure in the 2nd half of the period under review as valuations
became attractive and leading economic indicators were showing signs of bottoming.
Distribution as at August 31,
2009
2008
2007
Gross Distribution per Unit (sen)
9.14
8.50
3.50
Net Distribution per Unit (sen)
8.88
8.03
2.40
2009
2008
2007
Equities
77.02%
60.96%
74.25%
Liquid Assets and Others
22.98%
39.04%
25.75%
Distribution is in the form of reinvestment.
Asset Allocation as at August 31,
In 2008, the EIM adopted a defensive strategy and kept the equity exposure low due to macro incertainties.
Hence, during September 1, 2008 to August 31, 2009, the Fund’s holdings in cyclical stocks were reduced and
focused on defensive stocks with above average dividend yield. In second quarter 2009, the Fund increased its
equity exposure as valuations became attractive and leading economic indicators were showing signs of
bottoming.
Portfolio Turnover Ratio (PTR) as at August 31,
PTR (times)
2009
2008
2007
1.40
1.33
1.16
There was no significant change in the portfolio turnover rate.
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AMB Lifestyle Trust Fund Today
Average Total Return of AMBLTF Today for the Financial Years Ended September 30, 2009
1- Year
3-year
Since Launch
AMBLTF Today (%)
5.36
5.89
5.14
Benchmark (%)
10.49
6.36
5.38
Annual Total Return for the Financial Years Ended September 30,
2009
2008
2007
Since
Launch
AMBLTF Today (%)
5.36
1.38
11.65
3.42
Benchmark (%)
10.49
(4.64)
11.01
4.25
1-Year Fund Performance Review
The Fund underperformed the benchmark for the period under review as the equity exposure was generally low as
the manager adopted a defensive strategy due to macro uncertainties. For the fixed income portion of the
portfolio, the Fund focused on primary corporate issues with good credit quality that offered attractive yield
premium above risk free rates for better yield pick up.
The existing benchmark came into force on November 28, 2008. Previously the benchmark was 80% of the 12month fixed deposit rate and 20% of the performance of the FTSE Bursa Malaysia EMAS Index. The benchmark was
revised to better reflect the Fund’s asset allocation policy, strategy and investment objective.
Distribution as at September 30,
2009
2008
2007
Gross Distribution per Unit (sen)
1.60
3.50
2.00
Net Distribution per Unit (sen)
1.59
3.41
1.86
2009
2008
2007
Fixed Income Securities
70.35%
84.50%
80.84%
Equities
6.76%
6.73%
18.09%
Liquid Assets and Others
22.89%
8.77%
1.07%
Distribution is in the form of reinvestment.
Asset Allocation as at September 30,
The Fund focused on primary corporate issues with good credit quality that offer attractive yield premium above
risk free rates for better yield pick-up. The proceeds were parked temporarily in liquid assets as the EIM was
waiting for an opportunity to increase the equity exposure at attractive price levels.
Portfolio Turnover Ratio (PTR) as at September 30,
PTR (times)
2009
2008
2007
0.37
0.51
0.54
The lower PTR in 2009 was due to fewer transactions done during that financial year.
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AMB Lifestyle Trust Fund 2014
Average Total Return of AMBLTF 2014 for the Financial Years Ended September 30, 2009
1- Year
3-year
Since Launch
AMBLTF 2014 (%)
8.83
10.51
7.95
Benchmark (%)
13.98
7.94
6.47
Annual Total Return for the Financial Years Ended September 30,
2009
2008
2007
Since
Launch
AMBLTF 2014 (%)
8.83
(1.98)
26.87
4.35
Benchmark (%)
13.98
(10.09)
21.02
4.84
1-Year Fund Performance Review
The Fund underperformed the benchmark for the period under review as the equity exposure was at times below
the targeted asset allocation level of 35-40% as the Fund was taking a defensive position, amidst adverse market
conditions, to preserve capital. This was because the manager adopted a defensive strategy due to macro
uncertainties. For the fixed income portion of the portfolio, the Fund focused on primary corporate issues with
good credit quality that offered attractive yield premium above risk free rates for better yield pick up.
The existing benchmark came into force on November 28, 2008. Previously the benchmark was as follows:TAA 1 – 46% FTSE Bursa Malaysia EMAS Index and 54% of the fixed deposit rate
TAA 2 – 40% FTSE Bursa Malaysia EMAS Index and 60% of the fixed deposit rate
TAA 3 – 34% FTSE Bursa Malaysia EMAS Index and 66% of the fixed deposit rate
TAA 4 – 27% FTSE Bursa Malaysia EMAS Index and 73% of the fixed deposit rate
The benchmark was revised to better reflect the Fund’s asset allocation policy, strategy and investment objective.
Distribution as at September 30,
2009
2008
2007
Gross Distribution per Unit (sen)
5.00
5.50
2.40
Net Distribution per Unit (sen)
4.98
5.42
2.19
2009
2008
2007
Fixed Income Securities
41.93%
44.44%
51.67%
Equities
35.85%
16.77%
37.56%
Liquid Assets and Others
22.22%
38.79%
10.77%
Distribution is in the form of reinvestment.
Asset Allocation as at September 30,
The Fund’s exposure in equity, fixed income securities and money market was within the target asset allocation 2
(TAA 2) as stated in the Master Prospectus. The Fund focused on primary corporate issues with good credit quality
that offer attractive yield premium above risk free rates for better yield pick-up.
Portfolio Turnover Ratio (PTR) as at September 30,
PTR (times)
2009
2008
2007
0.32
0.92
0.87
The lower PTR in 2009 was due to fewer transactions done during that financial year.
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AMB Dividend Trust Fund
Average Total Return of AMBDTF for the Financial Years Ended April 30, 2010
1- Year
3-Year
Since Launch
AMBDTF (%)
34.40
9.45
14.82
Benchmark (%)
25.63
1.23
8.19
Annual Total Return for the Financial Years Ended April 30,
2010
2009
2008
AMBDTF (%)
34.40
(7.37)
10.04
Benchmark (%)
25.63
(16.10)
(2.66)
1-Year Fund Performance Review
Since inception, the Fund has consistently been outperforming its benchmark and has also been meeting its
objectives of providing regular income as well as attaining medium-to-long term capital appreciation.
The existing benchmark came into force on November 28, 2008. Previously the benchmark was 70% of the
weighted average of the Kuala Lumpur Composite Index performance and 30% of the Maybank 3-month fixed
deposit rate. The benchmark was revised to better reflect the Fund’s asset allocation policy, strategy and
investment objective.
Distribution as at April 30,
2010
2009
2008
Gross Distribution per Unit (sen)
8.00
1.00
2.03
Net Distribution per Unit (sen)
7.95
0.83
1.57
2010
2009
2008
Equities
90.53%
70.41%
70.22%
Collective Investment Scheme
21.95%
12.50%
13.52%
(12.48)%
17.09%
16.26%
Distribution is in the form of cash and reinvestment.
Asset Allocation as at April 30,
Liquid Assets and Others
The Fund were focusing on high dividend yielding stocks and stocks which were trading far below their fundamental
value due to the recent economic crisis sell-off. The Fund also increased exposure in blue chip counters.
Portfolio Turnover Ratio (PTR) as at April 30,
PTR (times)
2010
2009
2008
0.90
0.49
0.48
There was an increase in the PTR due to the increase in trading activity during that financial year.
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AMB Dana Yakin
Average Total Return of AMBDY for the Financial Years Ended April 30, 2010
1- Year
3- Year
5- Year
Since Launch
AMBDY (%)
26.01
(1.30)
5.58
5.85
Benchmark (%)
32.51
2.76
11.43
8.08
Annual Total Return for the Financial Years Ended April 30,
2010
2009
2008
2007
2006
2005
2004
2003
2002
AMBDY (%)
26.01
(20.46)
(7.58)
37.76
3.00
(5.69)
27.01
(61.68)
44.47
Benchmark (%)
32.51
(20.10)
(3.09)
49.31
6.61
(1.79)
31.29
(7.99)
31.83
1-Year Fund Performance Review
The Fund underperformed the benchmark mainly due to asset allocation. For most of the earlier half of the period
under review, the Fund’s exposure to equities was low as the manager was cautious due to uncertainties in the
global economy and financial markets. Subsequently, the manager increased its weighting in equities as several key
leading economic indicators showed signs of bottoming.
The existing benchmark came into force on November 17, 2008. Previously the benchmark was FTSE Bursa Malaysia
EMAS Shariah Index performance. The benchmark was revised to better reflect the Fund’s asset allocation policy,
strategy and investment objective.
Distribution as at April 30,
2010
2009
2008
Gross Distribution per Unit (sen)
Nil
Nil
Nil
Net Distribution per Unit (sen)
Nil
Nil
Nil
2010
2009
2008
82.35%
46.48%
77.63%
Nil
11.08%
7.43%
17.65%
42.44%
14.94%
Asset Allocation as at April 30,
Equities
Islamic Fixed Income Securities
Mudharabah Deposits and Others
From second quarter 2009 to third quarter 2009, the Fund’s exposure to equities was low as the EIM was cautious
due to uncertainties in the global economy and financial markets. Subsequently, the EIM increased its weighting in
equities as several key leading economic indicators were showing signs of bottoming out. The Manager also
focused on several investment themes including economic recovery, beneficiaries of pump priming and mergers &
acquisitions.
Portfolio Turnover Ratio (PTR) as at April 30,
PTR (times)
2010
2009
2008
0.97
1.90
0.98
The lower PTR in 2010 was due to fewer transactions done during that financial year.
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AMB Dana Ikhlas
Average Total Return of AMBDI for the Financial Years Ended November 30, 2009
1- Year
3- Year
5- Year
Since Launch
AMBDI (%)
26.49
5.91
3.31
4.73
Benchmark (%)
31.17
7.17
7.21
8.90
Annual Total Return for the Financial Years Ended November 30,
2009
2008
2007
2006
2005
2004
2003
AMBDI (%)
26.49
(18.87)
14.88
8.95
(9.08)
0.65
18.95
Benchmark (%)
31.17
(28.94)
28.58
21.31
(12.43)
8.06
16.66
1-Year Fund Performance Review
For the period under review, the Fund’s NAV per unit increased to RM0.5238 as at 30 November 2009 from
RM0.4141 as at 30 November 2008, resulting in a gain of 26.49%. The Fund underperformed its benchmark by
4.68%. The underperformance was due to a high level of cash holdings during most of the financial year.
The existing benchmark came into force on November 17, 2008. Previously the benchmark was 65% of the FTSE
Bursa Malaysia EMAS Shariah Index performance and 35% of the 12-month mudharabah deposit profit rate. The
benchmark was revised to better reflect the Fund’s asset allocation policy, strategy and investment objective.
Distribution as at November 30,
2009
2008
2007
Gross Distribution per Unit (sen)
Nil
Nil
Nil
Net Distribution per Unit (sen)
Nil
Nil
Nil
2009
2008
2007
Equities
63.91%
35.12%
47.83%
Islamic Fixed Income Securities
29.43%
41.22%
27.03%
Mudharabah Deposits and Others
6.66%
23.66%
25.14%
Asset Allocation as at November 30,
The EIM have been positive on equities in second half 2009 as a result of the normalization in macroeconomic
outlook and global risk aversion. Meanwhile, the low returns in cash and the steady decline in the value of US
Dollar were among other reasons to overweight equities. Domestic economic conditions were dismal in the second
quarter 2009 such as export deterioration, mounting unemployment rate and rising corporate defaults. Hence, our
strategy was to underweight fixed income securities.
Portfolio Turnover Ratio (PTR) as at November 30,
PTR (times)
2009
2008
2007
1.51
0.58
0.88
The Fund is experiencing higher PTR over the years as a result of higher trading activities undertaken by the Fund.
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AMB Dana Arif
Average Total Return of AMBDA for the Financial Years Ended May 31, 2010
1- Year
3- Year
5-Year
Since Launch
AMBDA (%)
11.70
1.82
3.71
3.52
Benchmark (%)
2.85
3.28
3.35
3.33
Annual Total Return for the Financial Years Ended May 31,
2010
2009
2008
2007
2006
2005
AMBDA (%)
11.76
7.25
(11.93)
12.77
0.78
7.56
Benchmark (%)
2.86
3.27
3.72
3.64
3.26
3.28
1-Year Fund Performance Review
For the period under review, the Fund gave a return of 11.76% vis a vis benchmark return of 2.86%. The positive
performance was due to a combination of our overweight position in selected corporate bonds which performed
well as well as recovery in value of previously defaulted bonds.
The existing benchmark came into force on November 17, 2008. Previously the benchmark was 12-month profit
rate of the Al-Mudharabah General Investment Account of Maybank. The benchmark was revised to better reflect
the Fund’s asset allocation policy, strategy and investment objective.
Distribution as at May 31,
2010
2009
2008
Gross Distribution per Unit (sen)
Nil
Nil
Nil
Net Distribution per Unit (sen)
Nil
Nil
Nil
2010
2009
2008
Islamic Fixed Income Securities
89.07%
92.15%
92.16%
Mudharabah Deposit and Others
10.93%
7.85%
7.84%
Asset Allocation as at May 31,
The Fund’s investment in Islamic corporate bonds reduced marginally to 89.07% from 92.15% as selective bonds
were sold to realize gains as well as to bolster up the average credit rating of the portfolio. The average portfolio
weighted rating improved from AA3 to AA2.
Portfolio Turnover Ratio (PTR) as at May 31,
PTR (times)
2010
2009
2008
0.58
0.32
0.33
The increase in the PTR was due to the increase in trading activity during that financial year.
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Note:
1. The average total return of all the Funds above are based on the following calculation;
1/n
Annualised return (%) = [ { (1 + r1) (1 + r2)……………(1 + rn)
Where
} – 1 ] x 100
r = rate of return
n = number of years
2. The total return of all the Funds above are based on the following calculation;
•
Capital return (%) =
•
Income return (%) =
NAV per unit on ex − date
- 1 x 100
NAV per unit at the beginning of the financial year
Income Distributi on
x 100
NAV per unit at the beginning of the financial year
• Total return (%)
= Capital Return(%) + Income Return (%)
Portfolio Turnover Ratio (PTR)
Portfolio turnover of the Fund is the ratio of the average sum of the acquisitions and disposals of the Fund for the
year to the average value of the Fund for the year calculated on a daily basis, i.e.:
[Total acquisitions of the Fund for the year + Total disposals of the Fund for the year] / 2
Average value of the Fund for the year calculated on a daily basis
Past performance of the Funds is not an indication of its future performance.
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6 Historical Financial Highlights of the Funds
6.1
EXTRACTS OF THE FINANCIAL STATEMENTS OF THE FUNDS
Following are the extracts of the audited financial statements of the Funds for the last three financial years,
immediately preceding the date of the prospectus:
6.1.1
PNB SIF
Extract of Audited Statement of Income and Expenditure For The Financial Years Ended July 31
2010
RM’000
May 12, 2008 (date of launch)
to July 31, 2009
RM’000
129,864
(26,552)
103,312
103,312
109,674
(28,139)
81,535
81,535
2010
RM’000
2009
RM’000
Total Investments
Total Other Assets
Total Assets
Total Liabilities
2,625,303
36,505
2,661,808
(93,671)
2,574,086
783
2,574,869
(81,632)
Unit holders Capital/NAV
2,568,137
2,493,237
Total Investment Income
Total Expenses
Net Income Before Tax
Net Income After Tax
Extract of Audited Statement of Assets and Liabilities as at July 31
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6.1.2
AMBUTF
Extract of Audited Statement of Income and Expenditure For The Financial Years Ended June 30
2010
RM’000
2009
RM’000
2008
RM’000
15,579
(1,528)
14,051
13,719
(54,384)
(1,468)
(55,852)
(56,598)
(11,678)
(2,248)
(13,926)
(15,567)
2010
RM’000
2009
RM’000
2008
RM’000
Total Investments
Total Other Assets
Total Assets
Total Liabilities
130,908
1,520
132,428
(421)
127,969
496
128,465
(305)
158,389
3,104
161,493
(326)
Unit holders Capital/NAV
132,007
128,160
161,167
Total Investment Income/(Loss)
Total Expenses
Net Income/(Loss) Before Tax
Net Income/(Loss) After Tax
Extract of Audited Statement of Assets and Liabilities as at June 30
6.1.3
AMBBTF
Extract of Audited Statement o f Income and Expenditure For The Financial Years Ended September 30
Total Investment (Loss)/Income
Total Expenses
Net (Loss)/Income Before Tax
Net (Loss)/Income After Tax
2009
RM’000
2008
RM’000
2007
RM’000
(14,965)
(1,949)
(16,914)
(17,169)
(12,209)
(6,796)
(19,005)
(19,714)
10,483
(3,859)
6,624
5,759
Extract of Audited Statement of Assets and Liabilities as at September 30
2009
RM’000
2008
RM’000
2007
RM’000
Total Investments
Total Other Assets
Total Assets
Total Liabilities
121,127
2,246
123,373
(329)
128,829
1,947
130,776
(348)
196,882
1,705
198,587
(3,434)
Unit holders Capital/NAV
123,044
130,428
195,153
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6.1.4
AMBITF
Extract of Audited Statement of Income and Expenditure For The Financial Years Ended June 30
Total Investment Income
Total Expenses
Net Income(Loss)/ Before Tax
Net Income(Loss)/ After Tax
2010
RM’000
2009
RM’000
2008
RM’000
5,626
(1,182)
4,444
4,444
2,869
(19,386)
(16,517)
(16,517)
12,221
(46,058)
(33,837)
(33,837)
Extract of Audited Statement of Assets and Liabilities as at June 30
2010
RM’000
2009
RM’000
2008
RM’000
Total Investments
Total Other Assets
Total Assets
Total Liabilities
83,566
4,506
88,072
(267)
100,242
929
101,171
(150)
157,870
2,165
160,035
(954)
Unit holders Capital/NAV
87,805
101,021
159,081
6.1.5
AMBILTF
Extract of Audited Statement of Income and Expenditure For The Financial Years Ended October 31
2009
RM’000
2008
RM’000
2007
RM’000
1,295
(199)
1,096
1,013
3,968
(264)
3,704
3,504
9,691
(384)
9,307
9,027
2009
RM’000
2008
RM’000
2007
RM’000
Total Investments
Total Other Assets
Total Assets
Total Liabilities
17,151
233
17,384
(1,816)
12,796
462
13,258
(78)
30,571
167
30,738
(3,114)
Unit holders Capital/NAV
15,568
13,180
27,624
Total Investment Income
Total Expenses
Net Income Before Tax
Net Income After Tax
Extract of Audited Statement of Assets and Liabilities as at October 31
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6.1.6
AMBSCTF
Extract of Audited Statement of Income and Expenditure For The Financial Years Ended July 31
2010
RM’000
2009
RM’000
2008
RM’000
17,086
(1,601)
15,485
15,222
(44,598)
(1,384)
(45,982)
(46,295)
(40,783)
(1,954)
(42,737)
(43,225)
2010
RM’000
2009
RM’000
2008
RM’000
Total Investments
Total Other Assets
Total Assets
Total Liabilities
102,023
3,042
105,065
3,023
94,623
606
95,229
(1,946)
100,550
1,301
101,851
(186)
Unit holders Capital/NAV
102,042
93,283
101,665
Total Investment Income/(Loss)
Total Expenses
Net Income/(Loss) Before Tax
Net Income/(Loss) After Tax
Extract of Audited Statement of Assets and Liabilities as at July 31
6.1.7
AMBEBTF
Extract of Audited Statement of Income and Expenditure For The Financial Years Ended March 31
2010
RM’000
2009
RM’000
2008
RM’000
477
(304)
173
167
1,197
(341)
856
856
1,784
(15,902)
(14,118)
(14,118)
2010
RM’000
2009
RM’000
2008
RM’000
Total Investments
Total Other Assets
Total Assets
Total Liabilities
22,563
372
22,935
(198)
25,531
461
25,992
(49)
30,111
487
30,598
(81)
Unit holders Capital/NAV
22,737
25,943
30,517
Total Investment Income
Total Expenses
Net Income/(Loss) Before Tax
Net Income/(Loss) After Tax
Extract of Audited Statement of Assets and Liabilities as at March 31
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6.1.8
AMBETF
Extract of Audited Statement of Income and Expenditure For The Financial Years Ended August 31
2009
RM’000
2008
RM’000
2007
RM’000
1,452
(249)
1,203
1,171
3,328
(379)
2,949
2,832
15,309
(613)
14,696
14,469
2009
RM’000
2008
RM’000
2007
RM’000
Total Investments
Total Other Assets
Total Assets
Total Liabilities
15,603
434
16,037
(1,883)
14,063
1,282
15,345
(2,470)
29,389
167
29,556
(1,923)
Unit holders Capital/NAV
14,154
12,875
27,633
Total Investment Income
Total Expenses
Net Income Before Tax
Net Income After Tax
Extract of Audited Statement of Assets and Liabilities as at August 31
6.1.9
AMBVTF
Extract of Audited Statement of Income and Expenditure for The Financial Years Ended August 31
2009
RM’000
2008
RM’000
2007
RM’000
1,792
(283)
1,509
1,457
3,396
(330)
3,066
2,979
15,067
(517)
14,550
14,259
2009
RM’000
2008
RM’000
2007
RM’000
Total Investments
Total Other Assets
Total Assets
Total Liabilities
17,681
162
17,843
(1,825)
14,549
1,098
15,647
(1,839)
23,187
910
24,097
(2,262)
Unit holders Capital/NAV
16,018
13,808
21,834
Total Investment Income
Total Expenses
Net Income Before Tax
Net Income After Tax
Extract of Audited Statement of Assets and Liabilities as at August 31
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6.1.10
AMBLTF Today
Extract of Audited Statement of Income and Expenditure for The Financial Years Ended September 30
Total Investment Income
Total Expenses
Net Income Before Tax
Net Income After Tax
2009
RM’000
2008
RM’000
2007
RM’000
512
(149)
363
362
840
(228)
612
591
2,684
(342)
2,342
2,285
2009
RM’000
2008
RM’000
2007
RM’000
9,987
174
10,161
(360)
12,279
466
12,745
(943)
22,139
432
22,571
(878)
9,801
11,802
21,693
Extract of Audited Statement of Assets and Liabilities as at September 30
Total Investments
Total Other Assets
Total Assets
Total Liabilities
Unit holders Capital/NAV
6.1.11
AMBLTF 2014
Extract of Audited Statement of Income and Expenditure For The Financial Years Ended September 30
2009
RM’000
2008
RM’000
2007
RM’000
133
(57)
76
75
(2)
(69)
(71)
(74)
1,045
(80)
965
955
2009
RM’000
2008
RM’000
2007
RM’000
Total Investments
Total Other Assets
Total Assets
Total Liabilities
2,780
36
2,816
(619)
2,339
173
2,512
(277)
2,975
156
3,131
(150)
Unit holders Capital/NAV
2,197
2,235
2,981
Total Investment Income/(Loss)
Total Expenses
Net Income/(Loss) Before Tax
Net Income/(Loss) After Tax
Extract of Audited Statement of Assets and Liabilities as at September 30
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6.1.12
AMBDTF
Extract of Audited Statement of Income and Expenditure For The Financial Years Ended April 30
Total Investment Income
Total Expenses
Net Income Before Tax
Net Income After Tax
2010
RM’000
2009
RM’000
2008
RM’000
2,484
(305)
2,179
2,157
1,618
(305)
1,313
1,224
6,768
(548)
6,220
5,893
Extract of Audited Statement of Assets and Liabilities as at April 30
2010
RM’000
2009
RM’000
2008
RM’000
Total Investments
Total Other Assets
Total Assets
Total Liabilities
15,407
303
15,710
(3,465)
14,264
330
14,594
(514)
22,595
722
23,317
(1,585)
Unit holders Capital/NAV
12,245
14,080
21,732
6.1.13
AMBDY
Extract of Statement of Income and Expenditure for the Financial Years Ended April 30
2010
RM’000
2009
RM’000
2008
RM’000
6,325
(828)
5,497
5,436
(15,501)
(828)
(16,329)
(16,459)
3,015
(1,425)
1,590
961
2010
RM’000
2009
RM’000
2008
RM’000
Total Investments
Total Other Assets
Total Assets
Total Liabilities
50,443
367
50,810
(556)
40,635
5,092
45,727
(125)
66,741
740
67,481
(237)
Unit holders Capital/NAV
50,254
45,602
67,244
Total Investment Income/(Loss)
Total Expenses
Net Income/(Loss) Before Tax
Net Income/(Loss) After Tax
Extract of Statement of Assets and Liabilities as At April 30
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6.1.14
AMBDI
Extract of Statement of Income and Expenditure for the Financial Years Ended November 30
2009
RM’000
2008
RM’000
2007
RM’000
(47)
(303)
(350)
(389)
1,403
(362)
1,041
919
4,708
(850)
3,858
3,685
2009
RM’000
2008
RM’000
2007
RM’000
Total Investments
Total Other Assets
Total Assets
Total Liabilities
20,650
115
20,765
(105)
19,115
142
19,257
(68)
29,952
458
30,410
(318)
Unit holders Capital/NAV
20,660
19,189
30,092
Total Investment (Loss)/Income
Total Expenses
Net (Loss)/Income Before Tax
Net (Loss)/Income After Tax
Extract of Statement of Assets and Liabilities as At November 30
6.1.15
AMBDA
Extract of Statement of Income and Expenditure for the Financial Years Ended May 31
Total Investment Income
Total Expenses
Net Income/(Loss) Before Tax
Net Income/(Loss) After Tax
2010
RM’000
2009
RM’000
2008
RM’000
3,284
(878)
2,406
2,406
1,555
(81)
1,474
1,474
4,875
(12,695)
(7,820)
(7,820)
Extract of Statement of Assets and Liabilities as At May 31
2010
RM’000
2009
RM’000
2008
RM’000
Total Investments
Total Other Assets
Total Assets
Total Liabilities
34,861
332
35,193
(197)
46,650
405
47,055
(175)
59,501
668
60,169
(260)
Unit holders Capital/NAV
34,996
46,880
59,909
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6.2
Total Annual Expenses Incurred by the Funds in the last Financial Year
Following are the total annual expenses incurred by the Funds in the preceding financial year:
Fund Name
Management Fee
Trustee Fee
RM’000
%*
RM’000
%*
PNBSIF
25,681
1.00
800 0.03
(31 July 2010)
AMBUTF
1,353
1.00
44 0.03
(30 June 2010)
AMBBTF
1,024
0.85
42 0.03
(30 September 2009)
AMBITF
886
1.09
31 0.04
(30 June 2010)
AMBILTF
149
1.00
18 0.12
(31 October 2009)
AMBSCTF
1,485
1.50
69 0.07
(31 July 2010)
AMBEBTF
245
1.03
18 0.08
(31 March 2010)
AMBETF
212
1.50
18 0.13
(31 August 2009)
AMBVTF
233
1.50
18 0.12
(31 August 2009)
AMBLTF Today
113
1.02
18 0.16
(30 September 2009)
AMBLTF 2014
24
1.08
18 0.75
(30 September 2009)
AMBDTF
235
1.63
18 0.13
(30 April 2010)
AMBDY
745
1.50
40 0.08
(30 April 2010)
AMBDI
248
1.23
18 0.09
(30 November 2009)
AMBDA
795
1.97
28 0.07
(31 May 2010)
* The percentage is reflected as a percentage of average NAV.
Other Expenses
RM’000
%*
Total Annual
Expenses
RM’000
%*
71
0.00
26,552
1.03
131
0.10
1,528
1.13
115
0.10
1,181
0.98
79
0.10
996
1.23
32
0.20
199
1.33
47
0.05
1,601
1.62
41
0.17
304
1.28
19
0.13
249
1.76
32
0.21
283
1.82
18
0.15
149
1.33
13
0.55
57
2.38
52
0.36
305
2.12
43
0.09
828
1.67
37
0.18
303
1.51
55
0.14
878
2.18
The audited financial statements of the Fund are disclosed in the Fund’s annual report and are available upon
request.
Past performance of the fund is not an indication of its future performance. The fund’s annual report is
available upon request.
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6.3
Management Expenses Ratio (MER)
The Management Expense Ratio (MER) of the Funds for the past three (3) financial years is as shown below:MER (%)
Funds
2010
2009
2008
2007
PNBSIF*
1.03
1.25
-
-
AMBUTF
1.13
0.97
1.09
-
AMBBTF
-
0.98
1.01
1.74
AMBITF
1.23
1.40
1.31
-
AMBILTF
-
1.33
1.24
1.25
AMBSCTF
1.62
1.63
1.61
1.61
AMBEBTF
1.28
1.26
1.18
-
AMBETF
-
1.76
1.69
1.65
AMBVTF
-
1.82
1.74
1.66
AMBLTF Today
-
1.33
1.28
1.18
AMBLTF 2014
-
2.38
2.60
2.14
AMBDTF
2.12
1.87
1.71
-
AMBDY
1.67
1.67
1.67
-
AMBDI
1.51
1.47
1.49
-
AMBDA
2.18**
0.16
0.90
-
*PNBSIF was launched for less than 3 financial years.
**For AMBDA, during the financial period, the management fee charged to the Fund was based on mudharabah
profit sharing of 15:85 ratio whenever NAV per unit of the Fund is more than RM0.4950. As such in 2010, there
was management fee charged due to the NAV per Unit above RM0.4950, however in 2009, no management fee
was charged since the NAV per Unit was below RM0.4950.
The MER provides a measure by which investors can assess and compare the outgoing incurred by a fund. These
expenses are deducted from the income of the fund before it is paid to you.
MER of the Fund is the ratio of the sum of the fees and the recovered expenses of the unit trust fund to the
average value of the fund calculated on a daily basis, i.e.
Fees of the Fund + recovered expenses of the Fund
x 100
Average value of the Fund for the year calculated on a daily basis
Past performance of the fund is not an indication of its future performance. The fund’s annual report is
available upon request.
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Where:
Fees
=
All ongoing fees deducted/deductible directly from the Fund in respect of the period
covered by the management expense ratio expressed, as a fixed amount calculated on
a daily basis. This would include the annual management fee, the annual Trustee fee
and any other fees deducted/deductible directly from the Fund;
Recovered expenses
=
All expenses recovered from/charged to the Fund as a result of the expenses incurred
by the operation of the Fund, expressed as a fixed amount. This should not include
expenses that would otherwise be incurred by an individual investor (e.g. brokerage,
taxes and levies); and
Average value of
the Fund
= The NAV of the Fund, including Funds’ net income value less expenses on an accrued the
basis, in respect of the period covered by the MER, calculated on a daily basis.
Past performance of the fund is not an indication of its future performance. The fund’s annual report is
available upon request.
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7 Fees, Charges and Expenses
7.1
Charges
7.1.1
Sales Charge
Unit Holders have to pay a sales charge upon purchasing of Units in addition to the investment amount. The
maximum sales charge of the respective Funds is as follows and is negotiable, subject to the discretion of the
Manager.
Sales Charge for each distribution channel:
Funds
PNB SIF
AMBUTF
AMBBTF
AMBITF
AMBILTF
AMBETF
AMBVTF
AMBEBTF
AMBSCTF
AMBLTF Today
AMBLTF 2014
AMBDTF
AMBDY
AMBDI
AMBDA
Direct Investment through the Manager
Maximum Sales Charge
(percentage of NAV per Unit)
1.5%
7%
7%
2%
5%
7%
7%
2%
7%
2%
6%
6%
7.5%
7.5%
2%
IUTAs
Maximum Sales Charge
(percentage of NAV per Unit)
1.5%
7%
7%
2%
5%
7%
7%
2%
7%
2%
6%
6%
7.5%
7.5%
2%
Investors investing under the EPF Members Investment Scheme will be levied a service charge of up to 3% of NAV
per Unit, as regulated by EPF.
Below is an illustration on how the sales charge is calculated:1. Investment amount in AMBUTF
2. NAV per Unit
3. Sales Charge
RM10,000
RM0.5000
6.5% of NAV per Unit
Units issued to Unit Holder
= Investment Amount
NAV per Unit
= RM10,000.00
RM0.5000
= 20,000 Units
Sales Charge per Unit
= NAV per Unit x Sales Charge (%)
= RM0.5000 x 6.5%
= RM0.0325
Total Sales Charge
= 20,000 Units x RM0.0325
= RM650.00
Please note that the above example is for illustration purpose only.
Total sales charge is rounded up to the nearest 2 decimal points.
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7.1.2
Repurchase Charge
The Manager does not impose a repurchase charge on the repurchasing of Units by the Unit Holders for all Funds
except for PNB SIF. Units are repurchased by the Manager at NAV per Unit.
For PNB SIF, the repurchase charge incurred will depend on when the Unit Holders request for repurchase of their
Units. The longer the Unit Holder holds the Units, the lower is the repurchase charge. This charge is nonnegotiable. There will be no repurchase charge if the Units are held to the Maturity Date.
Details of the repurchase charge are as follows:2.5% of NAV per Unit in the 1st year from the Commencement Date (July 7, 2008 – July 6, 2009)
2.0% of NAV per Unit in the 2nd year from the Commencement Date (July 7, 2009 – July 6, 2010)
1.5% of NAV per Unit in the 3rd year from the Commencement Date (July 7, 2010 – July 6, 2011)
1.0% of NAV per Unit in the 4th year from the Commencement Date (July 7, 2011 – July 6, 2012)
0.5% of NAV per Unit in the 5th year from the Commencement Date (July 7, 2012 – July 4, 2013)
Nil – On Maturity Date or early termination date (July 5, 2013)
The repurchase charge shall be reimbursed to the Fund. This is to cover part of the transaction cost that may have
been incurred in disposing of instruments from the portfolio in order to fulfill repurchase requests. The total
repurchase charge will be rounded to the nearest 2 decimal points.
Below is the illustration on the calculation of the repurchase charge of PNB SIF, assuming the repurchase request is
made in the third year from the Commencement Date:1. Units repurchased
2. Repurchase charge
3. NAV per Unit
20,000 Units
1.5% of NAV per Unit
RM1.0000
Repurchase charge per Unit
= NAV per Unit x repurchase charge (%)
= RM1.0000 x 1.5%
= RM0.0150
Total repurchase charge
= 20,000 units x RM0.0150
= RM300.00
Please note that the above example is for illustration purpose only.
Total repurchase charge is rounded up to the nearest 2 decimal points.
7.1.3
Switching Charge
This facility enables Unit Holders to switch Units of one 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.
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The conditions for switching are set out below:
To Recipient
Fund
Switching
Equity
Bond
Balanced
Equity
Bond
Balanced
RM25 per
transaction
Up to 5% of amount
switched
Up to 1% of amount
switched
RM25 per
transaction
RM25 per
transaction
RM25 per
transaction
RM25 per
transaction
Up to 1% of
amount switched
RM25 per
transaction
Notes: (i) Switching facility is not available for PNB SIF.
(ii) 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.
7.1.4
Transfer Charge
An administrative fee of RM25 is charged per transaction.
7.1.5
Miscellaneous
In addition to the charges expressly allowed to be charged directly by the Manager and/or the Trustee, the Unit
Holder might be required to pay a charge not exceeding Ringgit Malaysia Fifty (RM 50.00) only in respect of :
a) any document supplied to the Unit Holder at the Unit Holder’s request; or
b) any act of administrative nature carried out for the Unit Holder at the Unit Holder’s request.
7.2
Fees
7.2.1
Management Fee
The Manager is entitled to an annual management fee. The annual management fee is 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 2 decimal points. The annual management fee of the respective Funds is as
follows:-
Funds
PNB SIF
AMBUTF
AMBBTF
AMBITF
AMBILTF
Annual Management Fee
(percentage of NAV)
Min
1.00%
1.00%
0.75%
1.00%
1.00%
Max
1.00%
1.50%
1.50%
1.50%
1.00%
Current year charge
(percentage of NAV)
1.00%
1.50%
1.50%
1.00%
1.00%
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Funds
Annual Management Fee
(percentage of NAV)
AMBSCTF
AMBEBTF
Min
1.50%
1.00%
Max
1.50%
1.11%
AMBETF
AMBVTF
AMBLTF Today
1.50%
1.50%
1.00%
1.50%
1.50%
1.10%
AMBLTF 2014
1.10%
1.23%
AMBDTF
1.50%
1.50%
AMBDY
AMBDI
1.50%
1.10%
1.50%
1.35%
AMBDA
Current year charge
(percentage of NAV)
1.50%
Equity Portion: 1.75%**
Bond Portion: 1.00%**
1.50%
1.50%
Equity Portion: 1.50%**
Bond Portion: 1.00%**
Equity Portion: 1.50%**
Bond Portion: 1.00%**
1.50%
1.50%
Equity Portion: 1.50%**
Bond Portion: 1.00%**
Profit Sharing Scheme with the investors
of the Fund in the ratio of 15:85 of Net
Investment Income*
15:85
* Net Investment Income is defined as the income of the Fund less 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 of a 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 diference 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 Net Asset Value of a Unit shall not be less than RM0.4950. If there is any decrease in the net asset
value as a result of the distribution or sub division of Unit, then the minimum value shall be adjusted accordingly.
**The flexible annual management fee rate is based on the asset allocation and the yield.
7.2.2
Trustee Fee
For AMBUTF and AMBBTF, the Trustee is entitled to the following fees, which are paid out of the Fund:
Size of Fund
First RM20 million
Next RM20 million
Next RM20 million
Next RM20 million
Next RM20 million
Any amount in excess of RM100 million
Rate per annum of the NAV of the Fund
0.06%
0.05%
0.04%
0.03%
0.02%
0.01%
For AMBITF, the Trustee is entitled to a fee at a rate of 0.035% per annum of the NAV of the Fund, (before
deducting annual management fee and Trustee fee for the day) up to a maximum NAV of RM100 million and
thereafter at a rate of 0.01%.
For AMBILTF, AMBETF, AMBVTF, PNB SIF, AMBDY and AMBDI, the Trustee is entitled to a fee of 0.08% per annum
of the NAV of the Fund, (before deducting annual management fee and Trustee fee for the day), subject to a
minimum fee of RM18,000 per annum calculated on a daily basis.
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For AMBEBTF, AMBSCTF and AMBDA, the Trustee is entitled to a fee at a rate of 0.07% per annum of the NAV of
each of the Fund, (before deducting annual management fee and Trustee fee for the day), subject to a minimum
fee of RM18,000 per annum. The Trustee fee is calculated on a daily basis.
For AMBLTF Today, AMBLTF 2014 and AMBDTF, the Trustee is entitled to a fee, which is calculated on a daily basis
as follows:•
If the Fund is invested locally only, the rate is 0.07% per annum (including local custodian fee) on NAV of the
Fund, before deducting annual management fee and Trustee fee for the day, calculated on a daily basis,
subject to a minimum fee of RM18,000 per annum.
•
If the Fund is invested locally and abroad, the rates are 0.07% per annum on the local NAV of the Fund
(including local custodian fee) and 0.07% per annum on the foreign NAV of the Fund (excluding foreign
custodian fee), before deducting annual management fee and Trustee fee for the day, calculated on a daily
basis, subject to a minimum fee of RM18,000 per annum.
7.2.3
Custodian Fee
Being the custodian of AMBUTF and AMBBTF, the Trustee is entitled to a custodian fee of 0.035% per annum of
the value of the stock and shares portfolio subject to a minimum of RM40,000 and a maximum of RM120,000 per
annum for AMBUTF and a minimum of RM60,000 and a maximum of RM150,000 per annum for AMBBTF.
7.3
Funds’ Expenses
The Management fee and Trustee fee, the auditor’s fees and other relevant professional fees, the costs of
distribution of annual reports, tax vouchers, distribution warrants, cost of modification of Deeds and other notices
to Unit Holders as well as expenses that are directly related and necessary for the administration of the Funds as
set out in the Deed shall be paid out of the Funds. These costs are already factored into any quoted Unit price.
7.4
Others
7.4.1
Policy On Brokerage Rebates And Soft Commissions
It is the policy of the Manager, the Trustees and their delegates to channel all rebates, if any, received from
brokers/dealers to the Funds.
The Manager and its delegates may 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.
There are fees and charges involved and investors are advised to consider them before investing in the Funds.
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8 Purchasing and Repurchasing of Units
8.1
Single Pricing Policy
The Manager adopts the single pricing policy in calculating your investment for purchasing and repurchase of
Units. Single pricing equates to sales and repurchase quoted and transacted on a single price (i.e. NAV per
Unit). The sales charge is disclosed in Section 7.1.1.
8.2
Valuation of Units
For Funds with no foreign investment, the valuation of Units is based on the NAV of the Fund and is calculated
at the end of the Business Day.
For AMBDTF, the valuation of Units is based on the NAV of the Fund and due to different time zone of the
countries, the NAV of the Fund is calculated after the end of the Business Day and at the close of the
respective exchanges. The daily NAV per Unit of AMBDTF will be published on the next Business Day after the
close of the respective exchanges (2 preceding days).
According to the Single Pricing Policy, the selling and repurchase prices of Units would be at the NAV per Unit.
Computation of the NAV per Unit at each valuation point is illustrated below:Total Assets
Total Liabilities
RM131,414,000.00
RM3,614,000.00
NAV
= Total Assets – Total Liabilities
= RM131,414,000.00 – RM3,614,000.00
= RM127,800,000.00
Units in Circulation
= 255,600,000 Units
NAV per unit
=
NAV______
UIC
= RM127,800,000.00
255,600,000
= RM0.50000000
NAV per Unit, rounded to 4 decimal places
= RM0.5000
Please note the above example is for illustration purpose only
8.3
Error in Pricing
If there is any incorrect calculation of the NAV per Unit, the Manager will take immediate remedial action to
rectify the error. The Manager’s remedial action will extend to the reimbursement of money to the Unit
Holders if the error is at or above the threshold of 0.5% of the NAV per Unit unless the impact on the individual
Unit Holder’s account is RM10.00 or less in absolute amount, in which case no reimbursement is required.
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8.4
Purchasing and Repurchase of Units
When you invest in a Fund you are issued with Units. These Units represent your holding in the Fund. The
number of Units that you will receive is determined by the NAV per Unit of the Fund. In addition to the amount
invested in the purchasing of Units, a sales charge is also imposed. Similarly, the repurchase of Units is also
determined by the NAV per Unit and in the case of PNB SIF, a repurchase charge is imposed if repurchased
before the Maturity Date.
8.5
Determination of Prices and Charges
The price of Units is computed on a Forward Pricing basis. Similarly, Units of the Fund are repurchased at the
NAV per Unit at the next valuation point after receipt of the repurchase request and acceptance by the
Manager. Consequently, any changes in the underlying assets of the Fund will cause its Unit prices to vary.
Purchasing of Units
Illustration of computation for investment in AMBUTF
Assuming:
(i)
(ii)
(iii)
Investment amount
NAV per Unit
Sales charge
Units issued to Unit Holder
: RM10,000.00
: RM0.5000
: 6.5% of NAV per Unit
= Investment Amount
NAV per Unit
= RM10,000.00
RM0.5000
= 20,000 units
Total amount of sales charge
incurred
=
=
=
=
Unit issued to Unit Holder x Sales Charge
20,000 Units x (6.5% x RM0.5000)
20,000 Units x RM0.0325
RM650.00
Total amount payable
= Investment amount + total sales charge
= RM10,000.00 + RM650.00
= RM10,650.00
Purchasing of Units, rounded to 2 decimal places
= RM10,650.00
Please note the above example is for illustration purpose only.
Repurchase an Investment
Repurchase of units by Unit holders is transacted at the NAV per Unit of the Funds. The Manager does not
impose a repurchase charge on the repurchase of units of Funds by Unit Holders except for PNB SIF.
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Repurchase of Units
Illustration of computation for repurchase of PNB SIF
Assuming:
(i)
(ii)
(iii)
Units repurchased by Unit Holder
NAV per Unit
Repurchase charge if repurchase is made
in the third year from the Commencement Date.
: 20,000 units
: RM1.0000
: 1.5% of NAV per Unit
Total number of Units repurchased by Unit Holder
(a)
Repurchase proceeds
= Repurchase Units x NAV per Unit
= 20,000 Units x RM1.0000
= RM20,000.00
(b)
Repurchase charge
= Repurchase charge per Unit x NAV per Unit x Units
Repurchase
= 1.5% x RM1.0000 x 20,000 Units
= RM300.00
(c)
Net repurchase proceeds
= Repurchase proceeds – Repurchase charge
= RM20,000.00 – RM300.00
= RM19,700.00
Repurchase of Units, rounded to 2 decimal points = RM19,700.00
Please note the above example is for illustration purpose only.
8.6
Minimum Balance of Investment
There is no restriction on the frequency of repurchase of Units a Unit Holder can redeem.
As for AMBUTF, AMBBTF, AMBITF, AMBILTF, AMBETF, AMBVTF, AMBEBTF, AMBSCTF, AMBDY and AMBDI, for
partial repurchase, the minimum balance of Units remaining in the account must always be one hundred (100)
Units. The Manager may elect not to redeem the entire account if the effect thereof would be that the Unit
Holder holds less than 100 Units.
As for AMBLTF Today, AMBLTF 2014, AMBDTF and AMBDA, for partial repurchase, the minimum balance of
Units remaining in the account must always be 1,000 Units. The Manager may elect not to redeem the entire
account if the effect thereof would be that the Unit Holder holds less than 1,000 Units.
As for PNB SIF, the minimum balance of Units remaining in the account must always be 10,000 Units, both for
individual and non-individual.
The Manager will pay the net repurchase proceeds to the Unit Holder within 10 days from the receipt of the
request to redeem.
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8.7
Cooling-Off Right
A Cooling-off Right refers to the right of the Unit Holder to obtain a refund of his investment in the Fund
including the sales charge if he so requests within the Cooling-off Period. A Cooling-off Right is only given to
an investor, other than those listed below, who is investing in any Fund within the AMB Family of Funds for the
first time:
(a) a corporation or institution;
(b) staff of the Manager; and
(c) persons registered to deal in unit trusts of the Manager.
The refund for every Unit held by the investor pursuant to the exercise of the Cooling-off Right shall be the
sum of:
(a) the NAV per Unit on the day the Units were first purchased; and
(b) the sales charge per Unit originally imposed on the day the Units were purchased.
Illustration of computation of Cooling-Off Proceeds
By the way of illustration, if a Unit Holder invested RM10,000 in AMBUTF on August 18, 2010, the computation
will be as follows: Assuming:
(iv)
(v)
(vi)
Investment amount
NAV per Unit
Sales charge
Units issued to Unit Holder
: RM10,000.00
: RM0.5000
: 6.5% of NAV per Unit
= Investment Amount
NAV per Unit
= RM10,000.00
RM0.5000
= 20,000 units
Total amount of sales charge
incurred
=
=
=
=
Unit issued to Unit Holder x Sales Charge
20,000 Units x (6.5% x RM0.5000)
20,000 Units x RM0.0325
RM650.00
Total amount payable
= Investment amount + total sales charge
= RM10,000.00 + RM650.00
= RM10,650.00
Total amount payable rounded to 2 decimal places
= RM10,650.00
Please note the above example is for illustration purpose only.
On August 20, 2010 (within the Cooling-off Period) the investor decides to exercise his Cooling-off Right by
submitting a request for a refund of his investment. The cooling off amount/proceeds due to you is computed
based on the Unit prices and NAV determined at the close of business on August 18, 2010 including the sales
charge.
Please note the above example is for illustrative purposes only.
When a Cooling-off Right is exercised, the money will be refunded to the applicant within 10 days of receipt of
the notice or exercise of Cooling-off Right by the Manager.
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The request to exercise your Cooling-off Right must be submitted either to the Manager or Distribution Branch
within 6 Business Days commencing from the date of purchase i.e. the date on which the Manager receives the
application form and the investment amount.
The Cooling-off Right for EPF investments is available subject to the terms and conditions of the EPF.
We value your investments and calculate the Unit prices for each Fund at the close of every Business Day. Unit
prices are published in major newspapers nationwide and investors may call our AMB Client Services : 03-2034
0800 or visit our website at www.ambmutual.com.my.
8.8
How to Purchase and Repurchase Units of the Funds
Making an investment in the Funds is simple. Just complete the application form accompanying this
Prospectus and send it to AMB or any Distribution Branch, following the instructions in the application form,
with the appropriate amounts for the Units to be purchased. An investor is recognised as a Unit Holder upon
receipt by the Manager of payment together with the completed application form. 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 application of units. The Trustee’s obligation only arises when the investment amount
deposited into the trust account. The Manager will issue investment confirmation statements to the Unit
Holders within 14 days from receipt of application forms by the Manager.
Withdrawals can also be made in part or entirely at any time by completing the request to repurchase form,
which can be obtained at AMB or any Distribution Branch. Although the Deed allows for a period of 10 days
after receiving the request to redeem for payment of proceeds to Unit Holders, the Manager will try to make
payment within 7 days of receiving the request. The Trustee will pay the repurchase proceeds to the Manager
and their obligation will be discharged thereafter.
8.9
Where to Purchase, Repurchase, Transfer and Switch
Units can be purchased, repurchased, transferred and switched during normal banking/business hours at AMB
or any Distribution Branch. Please refer to page 218 for more information on IUTA.
8.10
Invest Your EPF Savings
You may withdraw a portion of your EPF savings and invest in our Funds which are eligible under the EPF
Members’ Investment Scheme. Kindly refer to the Manager for the latest list of eligible Funds.
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. As such, Unit Holders are allowed to withdraw their money at
any Distribution Branch.
8.11
Transfer of Units
Units in all Funds are transferable. Every instrument of transfer must be left with the Manager and must be
accompanied by such evidence as the Manager may require proof of the title of the transferor and is subject to
administration fee of RM25 per transaction. For AMBUTF, AMBITF, AMBBTF, AMBILTF, AMBSCTF, AMBEBTF,
AMBETF, AMBVTF, AMBDY and AMBDA, the Manager may decline to register any transfer for registration,
which would result in the transferor or the transferee being a Unit Holder of less than 100 units.
For AMBLTF Today, AMBLTF 2014, AMBDTF and AMBDA, the Manager may decline to register any transfer for
registration, which would result in the transferor or the transferee being a Unit Holder of less than 1,000 Units.
For PNB SIF, the Manager may decline to register any transfer for registration, which would result in the
transferor or the transferee being a Unit Holder of less than 10,000 Units.
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8.12
The Flexibility to Switch Your Investment
We recognise that your investment needs may change over time. To meet your changing needs, the Manager
gives you the flexibility to switch from one Fund to any of the Funds under the AMB Family of Funds. However,
the switching facility is not available for PNB SIF. Unit holders who invest under the EPF Members Investment
Scheme are not allowed to switch to AMBDTF.
If you feel one or more of the other Funds we manage are better suited to your needs, you may switch to any
of these Funds. Each Fund has a different investment strategy and risk profile. You should read and understand
the current Prospectus of the Fund you are considering switching into before you decide to switch.
This switching facility is to enable Unit Holders to switch within the AMB Family of Funds in response to
changing financial goals and market conditions.
Switching is effectively a request to:
* withdraw all or a specified part of your investment in one Fund, at NAV applicable to units in that Fund at
the time of the switch, and
* use the proceeds to buy units in another Fund.
How to switch?
To switch between the AMB Family of Funds you can simply complete a switching form at AMB or any
Distribution Branch.
You may request a specified number of units to be switched from one Fund to another. The minimum amount
you can switch is 1,000 Units. However, distribution Units of conventional Funds cannot be switched to Shariah
Funds within AMB Family of Funds. Only the principal amount of conventional Funds is allowed to be switched
to Shariah Funds.
Investors are advised not to make payment in cash when purchasing units of a Fund via any
institutional/retail agent.
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9 Understanding Income Distribution
9.1
Distribution Policy
Distribution, if any, is declared at the end of the financial year of the Fund or for any specified period, as may
be determined by the Manager subject to approval from the Trustee.
The Funds with the exception of AMBILTF and AMBSCTF will distribute part or all of the Funds’ realized income
to the Unit Holders at the discretion of the Manager. The distribution of each Fund will vary depending on the
performance of each Fund and prevailing economic conditions.
For AMBILTF and AMBSCTF, it is not the Funds’ main objective to distribute income as the main focus of the
Funds is to secure capital growth in line with the performance of the FBM KLCI. Any distribution will be at the
discretion of the Manager, which if at all possible is incidental to carrying out the investment function in
accordance with the objective and investment strategies of the Funds.
It is intended that distributions to you, if any, will be based on the number of Units held by you as at the date
that the income is declared.
9.2
What Comprises Income Distribution?
Income Distribution is made from realised capital gains (net of realised losses) and realised income. Capital
gains are realised when investments are disposed off at a profit. Realised income is income from interest,
accretion of discounts net of amortisation of premium on fixed income securities and dividend income from
share equities as well as distribution equalisation arising from the creation price of Units.
9.3
Mode of Payment for the Income Distribution
Funds
PNB SIF
Mode of Payment for the Income Distribution
i. Payment by cheque which will be forwarded to your latest address shown in our
register; or
ii. Reinvestment of units which is computed based on the NAV per Unit at the close
of the first Business Day immediately following the distribution date.
AMBUTF, AMBBTF,
AMBITF and AMBEBTF
i.
ii.
Payment by cheque which will be forwarded to your latest address shown in our
register; or
Reinvestment of units which is computed based on the NAV per Unit at the close
of the last Business Day falling 30 days after the distribution date.
AMBILTF, AMBDY and
AMBDI
Reinvestment of units which is computed based on the NAV per Unit at the close of
the last Business Day falling 30 days after the distribution date.
AMBLTF Today,
AMBLTF 2014,
AMBSCTF, AMBVTF,
AMBETF and AMBDA
Reinvestment of units which is computed based on the NAV per Unit at the close of
the first Business Day immediately following the distribution date.
AMBDTF
Payment by cheque which will be forwarded to your latest address shown in our
register.
For reinvestment of distribution units, no sales charge will be imposed.
For PNB SIF, AMBUTF, AMBBTF, AMBITF and AMBEBTF, if you do not nominate the mode of payment for the
income distribution, your income will automatically be reinvested on your behalf based on the above mode of
payment of the respective Funds.
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As for EPF Unit Holders, any income distributions paid by the Fund will be considered as EPF savings and must
be automatically reinvested into additional Units of the same Fund. However, upon reaching the age of 55,
investment under EPF Members Investment Scheme will no longer be treated under the EPF Members’
Investment Scheme. As such, any income distribution will be paid directly to you.
9.4
Auto-Reinvestment of Distribution Cheques upon Lapse of Six Months Cheque Validity
Period
For distribution cheques which are unpresented by you after expiry of the six months cheque validity period
(from the date of the distribution cheque), we shall reinvest the distributions through the purchase of
additional units of the applicable Fund on your behalf. The reinvestment will be executed based on the NAV
per Unit at the end of the said 6 month period or such date as may be determined by us.
The above exercise is only applicable for Unit Holders of AMBUTF, AMBBTF and AMBITF, AMBEBTF who
entered in the respective register on or after 19 September 2000. The above exercise is also applicable for Unit
Holders of PNB SIF and AMBDTF.
9.5
Policy on Unclaimed Monies
Any distribution payable to such Unit Holders remaining unclaimed for such period of time as prescribed by
the Unclaimed Monies Act 1965 after the date for payment shall be paid by the Trustees to the consolidated
trust account in accordance with the provisions of the Unclaimed Monies Act 1965.
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10 Communications with Unit Holders
The Manager is dedicated to providing investors with high quality information services to help investors make
well-informed investment decisions. We focus on individual investors with a lasting commitment to realisation
of their long-term investment goals by providing a value-added contribution to the management of their
personal wealth.
10.1
Customer Information Service
You can seek assistance on any issue relating to the Funds on Business Days by contacting:
• AMB Client Services : 03-2034 0800 from 9.00 am to 6.00 pm
• Distribution Branches from 9.00 am to 4.30 pm
Alternatively, you may also:
• Email at [email protected]
• Visit AMB’s website at www.ambmutual.com.my
Unit Price
AMB publishes the NAV per Unit of the Funds in at least one national Bahasa Malaysia and one national English
newspaper daily. Unit Holders can also view the NAV per Unit of the Fund at our website. The Manager has
taken necessary procedures to ensure accuracy of information of pricing sent to Bernama and the respective
newspapers. However, the Manager would not be held liable for the errors or omission of the printed
information on the prices of its Funds in the newspapers.
10.2
Regular Reports on your Investment
There are 2 main types of information that you will receive about your investment. You should read these
documents carefully.
1.
Transaction Statement
When you make your investment in the Funds you will receive an investment transaction statement
showing details of the amount you have invested in the Funds. Subsequently, the Manager will forward an
investment confirmation statement to all Unit Holders to confirm the number of Units that the Unit Holder
has invested.
2.
Interim and Annual Reports
AMB publishes strategies and performance of the Funds twice a year in interim and annual reports and
distributes to Unit Holders such reports within 2 months from the end of the half-year and financial year of
the Funds respectively. AMB shall deliver a copy of the interim report and lodge the annual report with the
SC.
10.3
Register of Unit Holders
The principal register of Unit Holders will be kept at the business office at 34th Floor, Menara PNB, 201-A,
Jalan Tun Razak, 50400 Kuala Lumpur and will be available for inspection by Unit Holders from 9.00 a.m. to
6.00 p.m., on Business Days.
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10.4
Policies Adopted by AMB to Avoid Money Laundering Activities
In complying with the Anti Money laundering and Anti-Terrorism Financing Act 2001, the Board of the
Directors has approved the following policies and procedures to be administered by AMB:
(a) Screening of transactions equal and above the threshold level from time to time in any of the Funds;
(b) Conducting review on the transactions equal and above the threshold level;
(c) Reporting of the “suspicious” transaction to Bank Negara Malaysia by the designated reporting officer.
10.5
Material Contracts
Saved as disclosed below, there are no other material contracts (including contracts not reduced into writing),
not being contracts entered into in the ordinary course of business, which have been entered into that relates
to the Fund within 2 years preceding the date of this Prospectus:
(a) The Deed dated March 7, 2008 constituting PNB SIF, entered into between AMB and ART, for the benefit of
the Unit Holders; and
(b) The Investment Management Agreement in relation to PNB SIF setting out the terms and conditions upon
which the Investment Manager has been appointed and has agreed to act as the Investment Manager of
PNB SIF entered into between AMB and PNB on March 10, 2008.
(c) Supplemental deed dated August 13, 2008 in relation to AMB Dana Yakin, AMB Dana Ikhlas and AMB Dana
Arif pertaining to substitution of Trustee.
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11 The Management and Administration of the Funds
11.1
Corporate Profile of the Manager
Amanah Mutual Berhad, is a unit trust management company regulated by the SC. AMB is a subsidiary of ASNB
since 2006 and is a member of Permodalan Nasional Berhad Group of Companies. It was incorporated on
March 22, 1990. It has an authorised capital of RM5 million and a paid up capital of RM5 million. As at LPD,
AMB has a total Fund size of RM3.22 billion.
AMB was formerly known as Mayban Unit Trust Berhad.
AMB is in the business of developing and promoting unit trust funds and its objective is to provide investors
with an opportunity to participate in good performing Funds with diversified investments such as equities,
bonds, short-term money market instruments and other capital market instruments. AMB has a 17-year track
record in managing unit trust funds in Malaysia.
At present, AMB manages 16 Funds under five categories of funds, namely Equity Fund (7 funds), Bond Fund
(4 funds), Balanced Fund (3 funds), Capital Protected Fund (1 fund) and Mixed Asset Fund (1 fund). There are
currently 5 External Investment Managers.
Our Staff Strength
AMB has a total staff strength of 41 experienced personnel in unit trust business, comprising 34 executives and
7 non-executives as at LPD, and is responsible for the day-to-day management of the Funds in accordance with
the provisions of the respective Deeds. Full details of the Manager’s duties are set out in the respective Deeds,
which are available for inspection at our principal office at 34th Floor, Menara PNB, 201-A Jalan Tun Razak,
50400 Kuala Lumpur.
Functions, Duties and Responsibilities of AMB
The general functions, duties and responsibilities of the Manager include, but are not limited to, the following:
1. Carry out and conduct its unit trust business in a proper and diligent manner and manage and administer
the Funds in a proper, diligent and efficient manner in accordance with the Deeds, the Act, the securities
laws, the Guidelines and other applicable Laws at all times and acceptable and efficacious business
practice within the unit trust industry;
2. Observe high standards of integrity and fair dealing in managing the Funds to the best and exclusive
interest of the Unit Holders;
3. Act with due care, skill and diligence in managing the Funds, and effectively employ the resources and
procedures necessary for the proper performance of the Funds;
4.
Not in any manner make any inequitable or illegal profit from its fiduciary position;
5. Ensure that the Deed and the Prospectus are at all times in compliance with the Deeds, the Act, the
securities laws, the Guidelines and other applicable laws at all times;
6. From time to time modify or propose such modifications to the Deeds and/or the Prospectuses as may be
necessary or desirable in the interests of the Unit Holders;
7. Take all necessary steps to ensure that the investments and other assets of that Funds are adequately
protected and properly segregated; and
8.
Unless otherwise specified in writing by the SC, ensure that the Funds have, at all times, an appointed
trustee.
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11.2
Past Performance of The Manager
The following is the summary of the past performance of the Manager based on the financial statements for
the past three (3) years.
Paid up capital
Shareholders' funds
Operating revenue
Pretax profit
Net profit after taxation
Year Ended 31
December
2009 (RM’000)
5,000
61,663
34,755
21,189
15,856
Year Ended 31
December
2008 (RM’000)
5,000
55,182
27,344
14,167
10,574
Year Ended 31
December
2007* (RM’000)
4,000
44,608
30,212
13,695
9,938
* AMB has changed its financial year end from 30 June to 31 December. The financial year ended 31 December
2007 covers the period from July 1, 2006 to December 31, 2007.
11.3
Profile of the Board of Directors of the Manager
The Manager
The Manager has an experienced Board of Directors, several of whom have a background in financial markets.
They are responsible for overseeing the activities of the Manager and the establishment of the Funds’ policies.
Board meetings are held formally at least four (4) times in a year and more frequently should circumstances
require.
There are five (5) members on the Board of Directors including two Independent Directors.
Board of Directors
Tun Ahmad Sarji bin Abdul Hamid (Chairman)
(Non-Executive/Non-Independent)
Tun Ahmad Sarji bin Abdul Hamid was appointed as a Director of AMB on November 30, 2006, by virtue of his
position as the Chairman of PNB, the holding company of ASNB. He was appointed as a member of the
Investment Committee for all the Funds managed by AMB on November 30, 2006. Prior to his appointment as
the Chairman of PNB, Tun Ahmad Sarji was the Chief Secretary to the Government from 1990 to 1996. He was
the President of the Commonwealth Association for Public Administration and Management, from 1996 to
1998.
He was conferred by the Government the "Tokoh Maal Hijrah" for the Islamic year 1420 (1999) and the
Director of the Year Award by the Malaysian Institute of Directors in 1999. Tun Ahmad Sarji also represents
the PNB Group as Chairman of several other companies.
Tun Ahmad Sarji is a graduate of the University of Malaya, the Harvard University of the United States of
America, and the Institute of Social Studies, The Hague, Netherlands. He was conferred the Honorary Degree
of Doctor of Science (Management) by Universiti Utara Malaysia, Doctor of Business Administration by the
Nottingham-Trent University, the United Kingdom, Doctor of Letters by the Universiti Malaysia Sarawak and
Doctor of Management by the International Islamic University Malaysia.
He was appointed Chairman of the Second National Economic Consultative Council on August 4, 1999.
Tun Ahmad Sarji is a member of the Board of Trustees, Oxford Centre for Islamic Studies and the Asian
Institute of Management, Manila, the Philippines, and joint-Chairman, Malaysia Centre Commonwealth
Studies, University of Cambridge, the United Kingdom.
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Tan Sri Dato' Sri Hamad Kama Piah bin Che Othman
(Non-Executive/Non-Independent)
Tan Sri Dato' Sri Hamad Kama Piah bin Che Othman was appointed as a Director of AMB on November 30,
2006. On February 26, 2002, Tan Sri Dato' Sri Hamad Kama Piah was appointed as the Group Managing
Director/Group Chief Executive of PNB, and subsequently renamed President and Group Chief Executive. He
was appointed as a member of the Investment Committee for all the Funds managed by AMB on November
30, 2006. Tan Sri Dato' Sri Hamad Kama Piah has been with PNB since 1979.
Tan Sri Dato' Sri Hamad Kama Piah is also the Chairman of the Board of Directors of Universiti Malaysia
Kelantan since May 2007 and sits on the Board of Directors of a number of Malaysian companies. A graduate
of Institut Teknologi MARA (presently known as Universiti Teknologi MARA), he also holds a Masters degree
from the University of Swansea, United Kingdom. He is a Senior Fellow of the Financial Services Insitute of
Australasia (FINSIA). He also holds the designation of a Certified Financial Planner and a Registered Financial
Planner, and represents the PNB Group as Director in several other companies.
Tan Sri Dato' Dr. Wan Mohd. Zahid bin Mohd. Noordin
(Non-Executive/Independent)
Tan Sri Dato' Dr. Wan Mohd. Zahid bin Mohd. Noordin was appointed as a Director of AMB on November 30,
2006, and as a member of the Investment Committee for all the Funds managed by AMB on February 9, 2007.
Tan Sri Dato' Dr. Wan Mohd. Zahid holds a Bachelor of Arts Degree from the University of Malaya, Master of
Arts Degree from Stanford University, Palo Alto, California, the United States of America, and Ph.D. from the
University of California, Berkeley, the United States of America. He also attended the Advanced Management
Programme at Harvard Business School, the United States of America. In 1997, Tan Sri Dato' Dr. Wan Mohd
Zahid was conferred the Doctor of Law "Honoris Causa" by the University of Lancaster, the United Kingdom.
Tan Sri Dato' Dr. Wan Mohd. Zahid has more than 30 years of experience in the Malaysian education service.
He held the post of Director-General of Education of Malaysia in 1993, and was appointed Advisor with Special
Functions to the Minister of Education in 1998. He was also an advisor to Sekolah Bahasa Teikyo. He was a
consultant to the Institute of Innovation and Technology, Manila, the Philippines, the UNICEF Research Project
on Pre-School Education in Malaysia, and had been a Council Member of the International Bureau of Education
in Geneva, Switzerland, and the Islamic Scientific, Educational, Social and Cultural Organisation in Rabat,
Morocco. In September 1999, he was appointed by UNESCO to serve as a consultant to the Ministry of
Education, Saudi Arabia, when that country embarked on an education reform initiative.
Tan Sri Dato' Dr. Wan Mohd. Zahid is the Chairman of several companies. He had also served as Deputy
Chairman of International Bank Malaysia Berhad until the merger of the bank.
Tan Sri Dato' Md Desa bin Pachi
(Non-Executive/Independent)
Tan Sri Dato' Md. Desa bin Pachi was appointed as a Director of AMB on December 22, 2006, and as a member
of the Investment Committee for all the Funds managed by AMB.
Tan Sri Dato' Md. Desa is a Chartered Accountant and was admitted as an Associate Member of the Institute of
Chartered Accountants, Australia, in 1962, and a Fellow of the Institute of Chartered Accountants, Australia in
1974. He studied accountancy in Melbourne, Australia, under a Colombo Plan Scholarship. He joined Shell
Group of Companies in 1962 and served in various capacities in the Finance Administration. From 1970 to
1976, he was in public practice as Chartered Accountant and was a partner of Desa Megat & Co and KPMG
Peat Marwick.
Subsequently, he was appointed as the first Chief Executive Officer of PNB and served as Chairman/Chief
Executive Officer of Malaysia Mining Corporation Berhad, Executive Chairman of Fleet Group Sdn Bhd,
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Chairman/Managing Director of The New Straits Times Press (Malaysia) Berhad and Chairman of Sistem
Televisyen Malaysia Berhad. From 1982 to 2006, he was the Chairman of Bumiputra-Commerce Holdings
Berhad. He also sits on the Board of Directors of several other companies.
Encik Idris bin Kechot
(Non-Executive/Non-Independent)
Encik Idris bin Kechot was appointed as a Director of AMB on November 30, 2006. He obtained his Bachelor of
Science Degree in Agribusiness from Universiti Putra Malaysia in 1983. In 1987, Encik Idris secured his Master
Degree in Business Administration specialising in Finance from the University of Stirling, United Kingdom. In
2006, he attended an Accelerated Development Programme at London Business School, the United Kingdom.
He started his career in 1983 as an Investment Analyst at the Corporate Research Department of PNB
undertaking industry and sectoral research. In 1988, he joined the Investment Division of PNB, responsible for
the equity investment activities. His 21 years experience incorporates equity valuation, equity trading and
portfolio management of the proprietary and unit trust portfolios.
He has also undergone extensive training and attachment program locally and overseas, in the area of equity
valuation, portfolio management and general management development. To further strengthen his skills and
knowledge in the area of investment management, Encik Idris had obtained qualification as a Certified
Financial Planner. He sits on the Board of Directors of several other companies.
11.3.1
Company Secretary
Puan Adibah Khairiah binti [email protected]
(MIA 13755)
Company Secretary
With effect from November 30, 2006, Puan Adibah Khairiah binti [email protected] was appointed as the Company
Secretary of Amanah Mutual Berhad. She holds a Bachelor of Commerce from Australian National University.
She is a Chartered Accountant and is a member of the Malaysian Institute of Accountants since 1999.
Puan Adibah started her career with Messrs. Coopers & Lybrand, Public Accountants, from 1988 to 1994. She
had served Sapura Holdings Sdn Berhad as Audit Manager from 1994 to 1997, and subsequently served Sapura
Industrial Berhad (formerly known as Sapura Motors Berhad) from 1997 to 1999, as Head of Internal Audit.
She had also served Percon Corporation Sdn Berhad as Financial Controller cum Company Secretary in 2002 to
2005. She joined PNB in 2005 and was seconded to Pelangi Berhad, as Chief Financial Officer. Puan Adibah is
presently attached to the Company Secretary's Department of PNB since October 2006. She sits on the Board
of Directors of several companies.
11.3.2
Senior Compliance Officer
Encik Paisol bin Ahmad
Senior Compliance Officer
Encik Paisol bin Ahmad is the designated Senior compliance Officer. He is the Senior Vice-President I, the Head
of Financial Management Audit and Risk Management Division of PNB. Encik Paisol is a Fellow of the
Association of Chartered Certified Accountants (United Kingdom), a member of the Malaysian Institute of
Accountants and a Fellow of Financial Services Institute of Australasia (FINSIA). Encik Paisol has more than 15
years of experience in the unit trust industry having served in various senior positions within PNB since 1993.
Encik Paisol is a Certified Financial Planner. He is also a registered compliance officer with the Securities
Commission. He sits on the Board of Directors of several companies.
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11.4
Profile of the Key Management Staff of the Manager
Puan Aldilla @ Zilfalila binti Abdul Halim (Sheila Halim)
Chief Executive Officer
Puan Sheila was appointed as the Chief Executive Officer of Amanah Mutual Berhad (AMB) on March 4, 2008.
Prior to joining AMB, Puan Sheila assumed a position as the Executive Director of CMS Asset Management Sdn
Bhd and also a seconded role as the Acting Chief Executive Officer of CMS Trust Management Berhad. Both are
subsidiaries of Cahya Mata Sarawak Berhad (CMS). She was overall responsible for developing business
strategies, marketing & sales plans and running for CMS financial-related businesses in fund management and
unit trust industry. She brings with her more than 12 years of marketing and investment management
experience which includes having being an equity portfolio manager of PFM Capital, an asset management
company of Permodalan Nasional Berhad and later to having served as Director of Fund Management with
Towry Law International. She holds a Bachelor of Science Degree in Mathematics & Statistics from the
University of Western Ontario, Canada.
Puan Ahirah Binti Abdul Rahman
Head of Accounts Department
Puan Ahirah binti Abdul Rahman had more than eight (8) years of audit experience with an established audit
firm before joining PNB in 1991. She was in the Finance Department, PNB and was subsequently transferred
to the Accounts Department, ASNB in 2001 and was responsible for the overall accounting functions of the
unit trust funds. On December 1, 2006, Puan Ahirah joined AMB as a Head of Accounts Department. She holds
a Diploma in Accountancy from MARA Institute of Technology, Shah Alam (now known as Universiti Teknologi
MARA-UiTM).
Encik Md. Kudus bin Abdul Manaf
Head of Operations Department
Encik Md Kudus bin Abdul Manaf is the Head, Operations Department. He joined AMB on December 1, 2006.
He has more than 24 years of working experience in PNB in various departments. He holds a Bachelor of
Business and Administration Degree from Ottawa University USA and a Diploma in Business Studies from
MARA Institute of Technology, Shah Alam (now known as Universiti Teknologi MARA-UiTM). He is responsible
for the overall operational and administration of AMB.
Puan Ross Liza Binti Othman
Head of Product Development & Administration Department
Puan Ross Liza binti Othman has more than 10 years experience in the financial market. Prior to joining AMB,
she was attached with the Fixed Income team in the Investment Department of American International
Assurance Berhad for 8 years where she was involved in various Fixed income investment operations which
included bonds dealing, money market as well as cash management and funding. She holds an ExecutiveMasters of Business Administration (EMBA) from UiTM, Shah Alam and a Bachelors of Business Administration
in Finance from Michigan State University, USA.
Encik Abdul Rani Hj Mohd Salleh
Head, Business & Sales Channel Department
Encik Abdul Rani Hj Mohd Salleh has more than ten (10) years of experience with financial institutions prior to
joining ASNB in 2001. He had served ASNB Marketing & Branch Operation as Head of ASNB Office in Kota
Bharu and Kangar and subsequently Customer & Agent Relation Department, ASNB Head Office where he
oversees the overall ASNB customers’ feedback and special functions. He officially joined AMB on December 1,
2006 as the Head, Business & Sales Channel. He holds a Diploma in Banking Studies from Universiti Teknologi
MARA.
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11.5
The Investment Committee of the Funds managed by the Manager
11.5.1
Roles and Responsibilities of the Investment Committee
The Investment Committee (IC) is primarily responsible for formulating, implementing and monitoring the
investment management strategies of the Funds in accordance with the investment objective set out for the
Funds, the Deed of the Fund, the Guidelines and securities laws, the internal investment restrictions and
policies and acceptable and efficacious investment management practices within the unit trust industry. The IC
is also responsible for the overall performance of the Funds by ensuring that the Funds are managed
professionally. In addition, the IC reviews and approves the portfolio strategies recommended by the External
Investment Manager. The IC meets once a month and more frequently should circumstances require. The
External Investment Manager will report on the activities and performance of the Funds directly to the IC at
monthly intervals for overall reviews.
11.5.2
The Investment Committee of the Funds
Tun Ahmad Sarji bin Abdul Hamid
(as afore-mentioned)
Tan Sri Dato’ Sri Hamad Kama Piah bin Che Othman
(as afore-mentioned)
Tan Sri Dato’ Dr. Wan Mohd. Zahid bin Mohd. Noordin
(as afore-mentioned)
Tan Sri Dato’ Md. Desa bin Pachi
(as afore-mentioned)
11.6
The Ethical Panel of Advisors
11.6.1
Roles and Responsibilities of the Ethical Panel of Advisors
•
To advise the Manager on all matters relating to the investments, operation (modus operandi) and
marketing of the ethical Fund to ensure proper compliance with the ethical principles and assisting
External Investment Manager in environmental and social screening method.
•
The member of the Ethical Panel of Advisors will meet to discuss on matters or issue of compliance
with the ethical principles pertaining to the above and forward their advice to the Manager.
•
The Ethical Panel of Advisors and the Manager will meet on a formal basis at least once every 3
months to review and advise on the ethical Fund’s compliance with the ethical principles in respect of
the investments, operations and marketing of the ethical Fund. Proper minutes of the meetings will
be taken and circulated to all members representing the Ethical Panel of Advisors and the Manager (in
the aspect of expertise and guidance in all matters relating to the ethical principles).
•
To furnish the Manager with guidelines and an official list of permissible investments approved by the
Ethical Panel of Advisors for the ethical Fund to invest in. The Ethical Panel of Advisors will advise the
Manager periodically on any updates to the list.
•
To prepare a report in the Manager’s annual reports stating in their opinion that the investments,
operations and accounting policies/system of the ethical Fund are in accordance with the ethical
principles.
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•
To be responsible for scrutinising the scheme’s compliance report as provided by the Compliance
Department and transaction report provided or duly approved by the Trustee to ensure that the
Fund’s investments are in line with ethical principles.
•
To reply to questions and queries on matters encountered during the day-to-day business operations.
The Ethical Panel of Advisors will regularly advise the Manager on the conformance of the
investments, operations and marketing aspects of the ethical fund with the ethical principles.
11.6.2 Profile of Ethical Panel of Advisors
The Ethical Panel of Advisors comprises of Dato’ Seri Dr. Haji Arshad bin Haji Hashim
Dato’ Seri Dr. Haji Arshad bin Haji Hashim was appointed as a member of the Ethical Panel of Advisors of AMB
on May 8, 2009. Dato’ Seri Dr. Haji Arshad holds a Bachelor of Arts (Economics) (Honours) degree from the
University of Malaya, a Diploma in Economics Development from University of Cambridge, a Masters in
Economics from University of Vanderbilt, the United States of America and a Doctor of Philosophy from
Universiti Pertanian Malaysia.
Dato’ Seri Dr. Haji Arshad has served over 30 years in the Malaysian Civil Service starting as the Assistant
Secretary of the Economic Division in the Ministry of Finance and rising to the position of State Financial
Officer of Penang in 1993. Amongst other positions held, was as Director of Bumiputera Participation Division,
Prime Minister's Department, Penang, Director General of Tourism Malaysia and Deputy Secretary General
(Finance and Development) Ministry of Education. He retired in 2005 as the Secretary General, Ministry of
Information, Malaysia.
He currently sits on the Board of Directors of several other companies.
Datuk Ibrahim bin Muhammad
Datuk Ibrahim bin Muhammad was appointed as a member of the Ethical Panel of Advisors of Amanah Mutual
Berhad on August 6, 2010. He obtained his Bachelor of Science (Agriculture) from Universiti Pertanian
Malaysia in 1981. He has attended various international management programmes at various universities and
institutions, including at The Asian Institute of Management in Philippines, the University of Washington and
the University of Chicago in the United States of Amerika.
Datuk Ibrahim had served Malayan Banking Berhad (Maybank) in a career that began in 1994 as Branch
Manager and culminated in his appointment as Executive Vice-President, Head, National Sales Consumer
Banking in 2010. As Vice President of the Board of Governors of the Financial Planning Associates of Malaysia,
he is also a member of the Federation of Investment Managers of Malaysia.
Dato’ Noor Farida binti Mohd Ariffin
Dato’ Noor Farida binti Mohd Ariffin was appointed as a member of the Ethical Panel of Advisors of AMB on
May 8, 2009. Upon completion of her legal studies at the Inns of Court in London, she joined the Judicial and
Legal Service in February 1971.
Dato’ Noor Farida had a long and distinguished career spanning over 36 years in the civil service, 25 years of
which was with the Judicial and Legal Service, including five years on secondment with the Commonwealth
Secretariat and 11 years with the Foreign Ministry. Dato' Noor Farida was seconded by the Government to the
Commonwealth Secretariat in London for 5 years as Director of the Women and Development Programme,
Human Resource and Development Group. In February 1993, upon her return to Malaysia, she was transfered
to Wisma Putra to head the newly established Legal Division of the Ministry.
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In September 1996, she was absorbed into the Administrative and Diplomatic Service and was appointed as
the Under-Secretary of the newly formed Territorial and Maritime Division of the Foreign Ministry.
In August 2000, Dato' Noor Farida was appointed as the Malaysian Ambassador to the Netherlands, a post
which she held until January 2008.
Whilst serving in The Hague, she was also concurrently appointed as the Malaysian Co-Agent to the
International Court of Justice for the Pulau Ligitan and Pulau Sipadan Case against Indonesia and the Malaysian
Permanent Representative to the Organisation for the Prohibition of Chemical Weapons, based in The Hague.
Dato’ Noor Farida was elected to the Chair of the 8th Conference of States Parties of the Chemical Weapons
Convention in October 2003. Prior to that, at the First Review Conference of the Convention held in April/May
2003, she was appointed to chair the Drafting Group on the Political Declaration.
Dato’ Noor Farida was again appointed the Malaysian Co-Agent by the Government when Malaysia and
Singapore agreed to submit the Pulau Batu Puteh dispute to the International Court of Justice.
She is currently the Director-General of Research, Treaties and International Law Department of the Ministry
of Foreign Affairs and is the Ambassador-At-Large for the ASEAN High Level Legal Experts Group on Follow-up
to the ASEAN Charter and sits on the Board of Directors of several other companies.
11.7
The Shariah Committee
11.7.1
Roles and Responsibilities of the Shariah Committee Members
•
To ensure that the Funds are managed and administered in accordance with Shariah Principles;
•
To provide expertise and guidance in all matters relating to Shariah Principles, including on the Funds’
deeds and prospectuses, their structure and investment processes, and other operational and
administrative matters;
•
Where there is any ambiguity or uncertainty as to an investment, instrument, system, procedure
and/or process, to consult the SC;
•
To act with due care, skill and diligence in carrying out their duties and responsibilities;
•
To scrutinise the Funds’ compliance reports as provided by the compliance officer, and investment
transaction reports provided by, or duly approved by, the Trustee to ensure that the Funds’
investments are in line with Shariah Principles; and
•
To prepare a report to be included in the Funds’ interim and annual reports certifying whether the
Funds have been managed and administered in accordance with Shariah Principles for the respective
periods concerned.
The Shariah Committee meetings are held formally at least once every 3 months and more frequently should
circumstances require.
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11.7.2 Shariah Committee Members
The Shariah Committee Members comprise: Dato’ Dr. Abdul Halim bin Ismail
Dato’ Dr. Abdul Halim bin Ismail was appointed as a member of the Shariah Committee of the Shariah funds
managed by AMB on November 30, 2006.
Dato’ Dr. Abdul Halim is the Executive Director Dealing of BIMB Securities Sdn. Berhad. He has considerable
experience in Islamic Banking, Takaful and Capital Market. He holds a Bachelor of Arts (Hons.), Degree in
Economics from the University of Malaya and Doctor of Philosophy (D. Phil.) in Economics from the University
of Oxford, the United Kingdom.
Dato’ Dr. Abdul Halim sits on the Boards of Directors of several companies.
Datuk Dr. Syed Othman bin Syed Hussin Alhabshi
Datuk Dr. Syed Othman bin Syed Hussin Alhabshi was appointed as a member of the Shariah Committee of the
Shariah funds managed by AMB on November 30, 2006. He holds a Bachelor of Economics Degree in Statistics
from University of Malaya, Master of Science in Statistics from University of Wisconsin, the United States of
America and Ph.D in Econometrics from University of Birmingham, the United Kingdom.
Datuk Dr. Syed Othman has more than 30 years experience in the Malaysian education service. He was
Professor, Dean of Graduate School and Acting Dean of Matriculation Centre of International Islamic University
Malaysia and Deputy Vice-Chancellor (Academic) of Universiti Utara Malaysia. He also held the post of Deputy
Director-General of Institute of Islamic Understanding Malaysia (IKIM) and had also previously served as the
founding President and Chief Executive Officer of University Tun Abdul Razak. He is currently The Chief
Academic Officer of the International Centre for Education in Islamic Finance (INCEIF), a university dedicated to
Islamic Finance.
He is currently a member of several Boards of Directors including, Etiqa Takaful Berhad, Maybank Islamic
Berhad, Prima Prai Sdn Berhad and Pak Kuwait Takaful Pte Ltd, Pakistan. He is also a member of the Shariah
Advisory Committees of Malaysian Industrial Development Finance Group of Companies, MNRB Retakaful
Berhad, Labuan Reinsurance Berhad and Singapore Unit Trusts Ethical Fund.
Dato’ Dr. Abdul Monir bin Yaacob
Dato’ Dr. Abdul Monir bin Yaacob was appointed as a member of the Shariah Committee of the Shariah funds
managed by AMB on November 30, 2006.
Dato’ Dr. Abdul Monir obtained first Degree “al-Aliyah” from Al-Azhar University and a Diploma in Law and
later a Master of Philosophy (Law) from University of London. He later completed his Ph.D at the International
Islamic University of Malaysia in 1991. Dato’ Dr. Abdul Monir has more than 10 years experience as a lecturer
and held the post of Associate Professor, Faculty of Law, Universiti Kebangsaan Malaysia. He was appointed as
Assistant Director General of Institut Kefahaman Islam Malaysia (IKIM) in November 1997 and was later made
Director General of IKIM from April 2002 to March 2005. He was appointed as Professor at the Department of
Syariah and Law, Academy of Islamic Studies, the University of Malaya from January 2006 to May 2007 and as
the Academic Advisor to Sultan Sharif Ali Islamic University, Brunei Darussalam from May 2007 to May 2009.
His present position was a Senior Research Fellow at the Department of Syariah and Law, Academy of Islamic
Studies, the University of Malaya.
Dato’ Dr. Abdul Monir is also a member of Shariah Committee of Singapore Unit Trust Limited.
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Prof. Dato’ Dr. Mahmood Zuhdi bin Hj Ab. Majid
Prof. Dato’ Dr. Mahmood Zuhdi bin Hj Ab. Majid was appointed as a member of the Shariah Committee of the
Shariah funds managed by AMB on November 30, 2006.
Prof. Dato’ Dr. Mahmood Zuhdi holds a Bachelor Degree in Shariah from Yayasan Pengajian Tinggi Islam
Kelantan, and later obtained a Masters in Shariah from University Al-Azhar, Cairo, as well as a Masters in
Philosophy from University of Kent. He went on to complete his Ph.D at the University of Malaya. He was the
Dean of the Faculty of Syariah as well as Director of Academy of Islamic Studies, University Malaya. He is
currently a Deputy Dean (Academic Affairs), International Institute of Islamic Thought and Civilization (ISTAC).
Prof. Dato’ Dr. Mahmood Zuhdi also sits on various advisory boards. He is the Chairman of the Shariah
Committee of Public Bank Berhad and Shariah advisor of As-Salihin Trustee. He is also the author of more than
20 Islamic publications.
11.8
Profile of the External Investment Managers
11.8.1
Permodalan Nasional Berhad
Permodalan Nasional Berhad (PNB) has been entrusted by AMB to manage the investments of PNB SIF.
Established in 1978 as one of the vehicles of the New Economic Policy, PNB has had considerable success in
promoting share ownership of the Bumiputera in the corporate sector through its unit trust funds. With more
than 30 years of experience in fund management, PNB has a proven track record whereby returns from its unit
trust funds have benefited Malaysians from all walks of life from the age of six months and above. As at LPD,
PNB has staff strength of 623 persons and managed total unit trust funds of RM163.72 billion. AMB assesses
the performance of PNB as the EIM of PNB SIF based on the investment mandate, objectives and other
functions as stipulated in the Investment Management Agreement signed between AMB and PNB, taking into
consideration the relevant market and industry benchmarks.
Profile of the Key Management Staff of PNB
Tan Sri Dato’ Hamad Kama Piah bin Che Othman
President and Group Chief Executive
(as afore-mentioned)
Puan Adibah Khairiah binti Ismail @ Daud (MIA 13755)
Company Secretary
(as afore-mentioned)
Datin Paduka Jamiah binti Abdul Hamid
Executive Vice-President I, Corporate Finance, Communication and International
Division / Human Resource Division
Datin Paduka Jamiah binti Abdul Hamid started her career in 1982 as the first batch of management trainee
with Permodalan Nasional Berhad (PNB). In her 28 years in the organization, Datin Paduka Jamiah has
accumulated extensive experience and expertise through the various positions held in the areas of investment
operations, corporate finance, research, portfolio management and corporate communication and human
resource development. She received her tertiary education abroad (University of Northern Illinois, B.Sc
(Finance) and locally (UKM, MBA). Currently, she is a director of several of PNB investee companies and also a
holder of Fund Management representative Licence and is a Certified Financial Planner. Today, Datin Paduka
Jamiah is the Deputy President – Corporate and International.
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INVESTMENT DIVISION OF PNB
The Investment Division of PNB’s main responsibility is in managing PNB SIF and other unit trust funds for
Amanah Saham Nasional Berhad. Its investment process incorporates fundamental, research-driven and teambased investment decisions which are guided by the investment committee of the abovementioned unit trust
funds. The portfolio management team formulates and recommends the investment strategies of the funds in
accordance with the investment mandates based on optimal asset allocation strategies and diversification.
These strategies are executed by the equity and fixed-income dealing teams. The division is well supported by
a team of analysts that performs the securities evaluation process which incorporates economic, industry,
sector, financial and credit analysis. As at LPD, the Investment Division has a staff strength of 65 persons. The
investment professionals are segregated into a team of 17 professionals in the portfolio management team, 8
professionals in the equities trading team, 5 professionals in the fixed-income investment team, 26 analysts in
the investment evaluation team and 8 are support staff. These professionals continually strive to meet the
expectation of unitholders of funds under PNB’s management in carrying out their duties. The Investment
Division of PNB and its related areas have been awarded MS ISO 9001-2000 certification for its investment
process.
Profile of Key Management Staff of the Investment Division of PNB
Encik Wan Roshdi bin Wan Musa
Chief Investment Officer
Encik Wan Roshdi bin Wan Musa, the designated Fund Manager for the investment management of PNB SIF.
Encik Wan Roshdi bin Wan Musa, is presently the Head of Investment Division of PNB. He holds a Masters
Degree in Business Administration, a Bachelor of Science in Finance from Northern Illinois University, United
States of America and a Diploma in Accountancy from MARA Institute of Technology. Encik Wan Roshdi is a
holder of Capital Market Services Representative Licence and also a qualified Certified Financial Planner (CFP).
He started his career in 1985 at the Corporate Finance and Corporate Services Department of PNB, rising to a
position of Head of Department. In 2003, Encik Wan Roshdi was transferred to the Investment Division of PNB
to assist the Senior Vice-President in supervising the investment evaluations, market operations and portfolio
management of the proprietary and unit trust funds. He also sits on the Board of Directors of several
companies.
Encik Abdul Rahim bin Ahmad
Vice-President I, Portfolio Management Department
Encik Abdul Rahim bin Ahmad, Vice-President I, is presently the Head of Portfolio Management Department of
Investment Division of PNB. He holds a Bachelor Degree in Statistics from Universiti Kebangsaan Malaysia and
a Graduate Diploma in Applied Finance and Investment from Financial Services Institute of Australasia. Encik
Abdul Rahim is also a fellow member of Financial Services Institute of Australasia and a qualified Certified
Financial Planner (CFP). He started his career at PNB in 1991 as an Investment Analyst in the Investment
Operations Department. Presently, he is responsible for the overall operations of Portfolio Management
Department and supervises the daily fund management of PNB’s proprietary fund and all its unit trust funds
under its management. Encik Abdul Rahim is also a holder of Capital Market Services Representative License.
11.8.2
Mayban Investment Management Sdn Berhad (MIM)
MIM is a holder of Capital Market Services License under the Act.
MIM is a member of Maybank Group, Malaysia’s largest financial services group by asset size. MIM was
established on 5 March 1997 following the corporatization of the Investment Department of Maybank
Investment Bank (formerly known as Aseambankers). Maybank Investment Bank, which was incorporated
earlier on 28 September 1973, is the investment banking arm of Maybank Group. Presently, MIM is whollyowned by Mayban Fortis Holdings Berhad (MFHB), the insurance arm of Maybank Group. MFHB is 69%-owned
by Etiqa International Holdings Berhad and 31%-owned by Fortis Insurance International NV.
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MIM has over 30 years experience including that prior to its corporatization at Maybank Investment Bank in
managing investments ranging from equity, fixed income and money market instruments mainly on behalf of
corporations, institutions, insurance companies, unit trust funds, individuals and wholesale funds. It has an
authorized paid-up capital of RM5 million. As at LPD, MIM’s total assets under management was
approximately RM20.48 billion including investments on behalf of 3 unit trust funds valued about RM18.42
million and 7 wholesale funds valued about RM680.05 million.
MIM presently has staff strength of 76 personnel comprising 70 executive staff and 6 non-executive staff. The
qualifications and experience of MIM’s key management staff are set out as follows:
Encik Ahmad Rizlan Azman, is the officially appointed as the Acting Chief Executive Officer with effect from
June 1, 2010. He also holds the position of Chief Commercial Office, joined Mayban Investment in November
2007. He has 13 years experience in financial services covering corporate strategy, corporate advisory,
corporate debt and relationship management. Prior to joining Mayban Investment, he served as Head,
Corporate Strategy & Communication at Affin Investment Bank and prior to that as Vice President, Financial
Institutions Relationship Management Group at Deutsche Bank. He graduated with BA (Hons) Accounting and
Finance from Middlesex University, UK. He is a holder of the Capital Market & Services Representative’s
licence.
Mr. Bernard Eng Ooi Kee, Head, Operations, assumed his current position in October 1998. As Head of
Operations, he is responsible for the fund accounting & settlement, fund performance measurement, risk
management and methods & systems. He has been with the Kumpulan Maybank since March 1980 except for
a period between June 1993 and April 1996 when he was with Hong Leong Assurance Bhd as a Credit
Controller. At Kumpulan Maybank, he has served Maybank Investment Bank (formerly known as
Aseambankers) in accounting, financial reporting, loan administration and securities administration. Mr. Eng
received his Associate of International Accounting (UK) in 1994.
Puan Wan Maizuni Wan Mohamad, Head, Compliance, joined Mayban Investment in January 2005. She has
more than 3 years experience as compliance officer with two asset management companies – RHB Asset
Management Sdn Bhd and Amanah Raya Asset Management Sdn Bhd. Prior to that she served as an
Organization & Method Executive at UMBC Securities Sdn Bhd. Puan Wan Maizuni graduated with LLB (Hons)
degree from University of East London, UK. She also holds a Diploma in Accountancy from MARA Institute of
Technology, Malaysia. She is a registered Compliance Officer with the Securities Commission.
Encik Azmeen Adnan, Head of Portfolio Management, Fixed Income, received his BSc in Business
Administration in 1995 from the University of Denver, Colorado, USA. He served KAF Investment Bank for
more than 6 years from 1996 and left as Senior Manager in a Treasury Department before joining PM
Securities in 2003. He then joined RHB Investment Bank in 2005 as an Assistant Vice President, Treasury
Department. Prior to joining MIM on 18 August 2008, he was attached to Kenanga Investment Bank as Vice
President, Treasury Department since September 2006.
Cik Nadjihah binti Mohd Dzaiddin, Head of Equity, Non-Insurance joined MIM in December 2003. She was a
Fund Manager at Affin Fund Management Sdn Bhd between 1997 and 2003 managing largely government and
corporate funds (both islamic and conventional funds). Presently she is managing all of the Syariah-based
equity funds, namely the unit trust funds, institutional and corporate funds. She has had 14 years experience in
the investment industry, 10 years of which as a Fund Manager. Prior to becoming a Fund Manager, she was an
equity analyst (on the sell-side) in RHB Research Institute Sdn Bhd. She obtained her degree in B.A. (Hons) Law
from University of Nottingham, UK and completed her Certificate of Legal Practice (CLP) in 1994. She had held
the Fund Manager's Representative license (now known as Capital Market & Services Representative’s licence)
since 1998. She obtained her current license from the SC on 6 December 2003 to act as a Fund Manager of
MIM.
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11.8.3
UOB-OSK Asset Management Sdn Bhd
UOB-OSK Asset Management Sdn Bhd (UOB-OSKAM) is one of the appointed external fund managers of AMB.
UOB-OSKAM, a licensed fund manager since January 1997, is one of the foreign fund management companies
in Malaysia, which offers investment management expertise to unit trust funds as well as institutions,
corporations and individuals through customized portfolio management services.
Established in June 1991, UOB-OSKAM is a 70% subsidiary of UOB Asset Management Ltd. (UOBAM), one of
the largest unit trust managers in Singapore in terms of assets under management. The 30% joint venture
partner of UOB-OSKAM is OSK Investment Bank Berhad, which is licensed to engage in stockbroking, futures
and options broking, corporate advisory, debt securities, interbank market activities, corporate loans,
wholesale deposit and other related activities.
UOB-OSKAM commenced operations in Kuala Lumpur in March 1997 and it has the support and resource
backing of an experienced team of investment professionals at its holding company, who have specialized skills
in portfolio investments in both the Asian and global markets. The funds under management as at LPD is
RM1.45 billion.
Its investment team have an average of 16 years’ experience in the fund management industry.
As at LPD, the company has total staff strength of 20, comprising 11 portfolio managers and analysts, and 9
personnel in research support, marketing, operations, administration.
The qualifications and experience of UOB-OSKAM’s key management staff are set out as follows:
Mr. Thio Boon Kiat, is a Director of UOB-OSKAM. He is also an Executive Director & Chief Investment Officer of
UOB Asset Management Ltd. (UOBAM), Singapore, a fund management company with total funds under
management of around SGD14.90 billion as at 30 June 2010. He is a CFA charterholder, and graduated with a
st
Bachelor of Business Administration (1 Class Hons) from the National University of Singapore. Mr. Thio joined
UOBAM in 1994 as a portfolio manager, managing Singapore and subsequently Asia Pacific and global equity
portfolios. He also headed the international equities and global technology teams. He has over 15 years of
investment management experience and previously worked in the Government of Singapore Investment
Corporation.
Ms Lim Suet Ling is the Executive Director of UOB-OSKAM. Prior to her appointment, she was an Associate
Director of UOB Asset Management. She holds a Bachelor of Business Administration (Hons) degree from the
National University of Singapore and is also a CFA charterholder. She has 19 years of experience in the industry
and has had numerous equity portfolios under her management. Her mandates have been wide-ranging,
covering both local and international ones, as well as various investment styles and focus. She has particular
expertise in Malaysian and Asia ex-Japan equities and has been the portfolio manager of several awardwinning funds. Ms Lim has been highly instrumental in the growth and development of UOB-OSKAM since the
incorporation of the company.
11.8.4
HwangDBS Investment Management Berhad
HwangDBS Investment Management Berhad (“HwangDBS IM”) was incorporated in Malaysia on 2 May 1997
under the Companies Act, 1965 and began operations under the name Hwang-DBS Unit Trust (HDBSUT)
Berhad in 2001. It is supported by one of Malaysia’s leading integrated financial services group, Hwang-DBS
(M) Berhad (HDBS) whose principal subsidiary, HwangDBS Investment Bank Berhad has over 35 years of
experience in the securities industry, and DBS Asset Management Ltd. (DBSAM), an award winning fund
management company with more than 24 years investment management experience.
HwangDBS IM is a holder of a valid and existing Capital Markets and Services Licence under the CMSA 2007
and has an authorised paid up capital of RM 10 million. Shareholders of HwangDBS IM are HDBS (53%),
DBSAM (30%) and Y.A.M. Tunku Dato’ Seri Nadzaruddin Ibni Almarhum Tuanku Ja’afar (17%). HWANGDBS IM
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distributes its funds through their Institutional Business (IB) and Unit Trust Consultant Business (UTCB) team
and via Institutional Unit Trust Advisers (IUTA) and the IUTA’s own internal consultants.
HwangDBS IM’s head office is located in Kuala Lumpur and has a total of 14 main sales offices located in
Peninsular and East Malaysia. They are in Penang, Bukit Mertajam, Sungai Petani, Taiping, Ipoh, Shah Alam,
Taman Tun Dr Ismail, Cheras, Subang Jaya, Seremban, Johor Bharu, Kuching and Kota Kinabalu.
To facilitate its on-going commitment to service and operational excellence, HDBSUT completed the
acquisition of the business of its sister company, Hwang-DBS Asset Management (Malaysia) Sdn. Bhd.
(HDBSAM) on 1 June 2005. The acquisition encompassed the complete transfer of the business under
HDBSAM, the fund management team and all business processes, to HDBSUT. By leveraging the strengths,
skills and expertise of both HDBSUT and HDBSAM, the consolidated entity will be able to manage both retail
and corporate funds. The entity was then renamed as HwangDBS IM to reflect the underlying business nature.
Milestones
As at LPD, HwangDBS IM has in its stable a total of 39 unit trust funds, offering a complete and essential range
of products, comprising conventional equity, balanced, bond, money market, capital guaranteed, capital
protected, global, structured and feeder funds, as well as Islamic equity, Islamic money market and Islamic
balanced funds.
Since 2001, HwangDBS IM has achieved an exponential growth in its total assets under management (AUM).
As at LPD, the total AUM, comprising in-house unit trust funds as well as corporate and discretionary
portfolios stood at approximately RM8.42 billion.
As at LPD, HWANGDBS IM has a staff force of one hundred and four (104), of whom, eighty-seven (87) are
executive staff and seventeen (17) are non-executive staff.
The qualifications and experience of HwangDBS IM’s key management staff are set out as follows:Mr. Teng Chee Wai – Chief Executive Officer / Executive Director
Mr Teng Chee Wai (CEO/Executive Director) was appointed to the Board on 23 December 2004. Mr Teng is
responsible for managing the overall business and strategic direction of the company as well as the
management of the investment team. Mr Teng currently holds a valid and existing Capital Markets and
Services Representative’s Licence to carry out fund management in securities. He has over 16 years experience
in the fund management industry and graduated with a Bachelor of Science from the National University of
Singapore and has a Post-Graduate Diploma in Actuarial Studies from City University in London. Mr Teng began
his career with NTUC Income in Singapore as an investment manager investing largely in the equity markets of
Malaysia, Singapore, Thailand and Taiwan. He then progressed to the position of Assistant General Manager of
Overseas Assurance Corporation (OAC) responsible for the group’s investment operations in Singapore and
Malaysia with total investment assets exceeding S$2.5 billion comprising equities, fixed income and other
investment assets. At OAC, Mr Teng was responsible for the investment function of the group and managed a
team of investment professionals. Mr Teng’s role required him to formulate the investment strategy for OAC’s
investments into treasuries, private debt securities, loans, as well as equities
Mr. David Ng Kong Cheong – Chief Investment Officer
Mr David Ng Kong Cheong was appointed as Chief Investment Officer on 1 September 2006, overseeing the
operations of the equities, fixed income and the central dealing units. David was initially signed on as a
Senior Portfolio Manager in HwangDBS IM on 1 June 2005. David currently holds a valid and existing Capital
Markets and Services Representative’s Licence to carry out fund management in securities. He graduated
with both Bachelor of Commerce (Accounting) and Bachelor of Law degrees from Monash University in
Melbourne, Australia and is a Chartered Financial Analyst (CFA) Charter holder. In total, David has over 11
years of equities investment experience in managing both institutional and unit trust funds. Prior to joining
HwangDBS IM, he spent 5 years at HLG Asset Management Sdn. Bhd. and 2 years at HDBSAM as a fund
manager.
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One of the key responsibilities of David at HwangDBS IM is the setting of investment strategy for the assets
under management. This necessitates him to keep abreast of global and regional macroeconomic and sectorspecific developments.
Ms. Esther Thye Yee Meng – Chief Sales Officer
Esther Thye was appointed as the Chief Sales Officer on 1 September 2006 and has been with the Manager
since January 2005, previously as the Head of Institutional Business. She brings over fifteen years of sales and
marketing experience primarily in the financial services industry. She is responsible for securing business from
private and institutional clients as well as developing portfolio management solutions for this niche market.
Esther is an Associate Financial Practitioner (AFP) who holds an advanced Diploma from the Chartered Institute
of Marketing (CIM).
Mr. Steve Lim Lip Hoong– Chief Product Officer
Mr Steve Lim Lip Hoong was appointed as the Chief Product Officer of HwangDBS IM on 1 June 2010. He
covers the strategic management as well as structuring, developing and positioning of all HwangDBS IM
products in their respective client segments.
Steve brings with him 20 years experience in portfolio management, marketing and product development for
the fund management, stock-broking, onshore and offshore private banking industries.
Prior to joining HwangDBS IM, Steve was attached to offshore global private banks in Singapore. His offshore
experience includes marketing of wealth management services and formulating investment strategies for the
high networth individual market segment. Before moving offshore, he also covered various aspects of the
capital market as fund manager, institutional sales and product director in several renowned financial groups
in Malaysia.
Steve graduated from the University of Hawaii with double major in Finance and Accounting, and is a
Chartered Financial Analyst (CFA) charter holder.
11.8.5
CIMB-Principal Asset Management Berhad (CIMB-Principal)
CIMB-Principal holds a Capital Markets Services License for fund management under the CMSA and specialises
in managing and operating unit trusts for investors, both institutional and retail. CIMB-Principal’s
responsibilities include managing investment portfolios by providing fund management services to insurance
companies, pension funds, unit trust companies, corporations and government institutions in Malaysia.
CIMB-Principal is a participating unit trust management company under the Malaysia Employees’ Provident
Fund (EPF) Members’ Investment Scheme and as at LPD, it was responsible for managing more than RM23.01
billion on behalf of individuals and corporations in Malaysia.
It originally commenced its operations as a unit trust company in November 1995. As at LPD, CIMB-Principal
has more than 14 years of experience in the unit trust industry.
As at 31 July 2010, the shareholders of the company are CIMB Group Sdn. Bhd. (“CIMB Group”) (60%) and
Principal International (Asia) Limited (“PIA”) (40%).
CIMB Group is held in majority by CIMB Group Holdings Berhad (formerly known as Bumiputera-Commerce
Holdings Berhad). It is a fully integrated investment bank. It offers the full range of services in the debt
markets, the equity markets and corporate advisory. Member companies of CIMB Group also provide services
in lending, private banking, private equity, Islamic capital markets as well as research capability in economics,
equity and debt markets.
Principal International (Asia) Limited is a private company incorporated in Hong Kong and its principal activity
is the provision of consultancy services to other PFG group of companies. PIA is a subsidiary of the Principal
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Financial Group, which was established in 1879 and is a diversified global financial services group servicing
more than 15 million customers.
As at LPD, CIMB-Principal managed 46 conventional unit trust funds (including 2 Exchange-Traded Funds) and
23 Islamic unit trust funds.
In addition to being able to draw on the financial and human resources of its shareholders, CIMB-Principal has
a staff strength of 166 comprising of 132 Executives and 34 Non-Executives, as at LPD.
The profile of CIMB-Principal’s key personnel are as follows:
John Campbell Tupling is the Chief Executive Officer of CIMB-Principal and has been an Alternate Director for
CIMB-Principal since 22 March 2004 and was redesignated as a principal Director of CIMB-Principal since 22
August 2007 upon his move to Malaysia. He was appointed the Chief Executive Officer / Executive Director of
CIMB-Principal on 1 November 2008. Has spent more than 11 years in various positions with Principal Financial
Group including COO - Asia (based in Hong Kong), Co-Head of Institutional Pension Segment (based in USA)
and Managing Director of Principal International Spain. Previous experience was 15 years with American
International Group in various capacities including Managing Director of AIG Mexico and AIG La Tandilense
(Argentina). Mr. Tupling graduated from University of Western Ontario, Canada with Bachelor of Arts.
Munirah Khairuddin is the Deputy Chief Executive Officer of CIMB-Principal. Joined CIMB-Principal on 1
November 2006. Previously, worked as a G7 Economist and strategist for a Fortune 500 multinational oil and
gas company. Prior to that, she was a fixed income portfolio manager for Emerging Markets at Rothschild
Asset Management in London. Apart from her Senior Management role, she is responsible for institutional
sales and marketing for both domestic and international investors and financial institutions. Her scope also
entails developing institutional business opportunities for CIMB-Principal in potential new markets.. She
graduated from University of Newcastle Upon Tyne, UK with Bachelor of Arts (Honours) in Accounting and
Financial Analysis. She is also a Chartered Financial Analyst Charterholder.
Raymond Tang is the Chief Investment Officer of CIMB-Principal. He has been with CIMB-Principal since 1
October 2004. He has over 20 years of experience in the asset management business, managing both
institutional and unit trust funds. Prior to joining CIMB-Principal, he was the Chief Investment
Officer/Executive Director of CMS Dresdner Asset Management from 1996 to 2004 and was jointly responsible
in making regional asset allocation decisions within the Asia-Pacific ex-Japan. He began his career as an
investment officer in RHB Asset Management in 1987 for 4 years, before moving on to CIMB Securities as an
investment executive for 1 year. In 1992 he joined SBB Asset Management as a fund manager until 1996.
Currently, he is the Chairman of Malaysian Association of Asset Managers (MAAM) and a committee member
of FTSE Bursa Malaysia Index Advisory Committee as well as an invitee in the Executive Committee of Malaysia
International Islamic Financial Centre (MIFC). He is a Fellow of the Chartered Institute of Management
Accountants (CIMA) United Kingdom and holds a Capital Markets Services Representative’s Licence for fund
management under CMSA.
Albert Tai Lee Chuan, Legal and Compliance.
Joined CIMB-Principal on 1 August 2008. He has over 13 years of experience in the capital market. Prior to
joining CIMB-Principal, he was the Director/Head of Compliance of OSK Investment Bank Berhad (OSK), a
position he held for 7 years. He began his career as an advocate and solicitor in 1990 for over 2 years before
moving on to be an Assistant Manager in the legal department of Berjaya Group for over 3 years. In 1995, he
joined OSK as the Group Legal Advisor before assuming the role as the Head of Compliance in 2000. He
oversees the compliance matters for CIMB-Principal. He holds a Bachelor of Economics and LLB from Monash
University, Australia.
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11.8.6
Duties of the External Investment Managers
Some of the main duties of the External Investment Managers are as follows: To comply with the operation procedures and invest the Funds in accordance with the Guidelines.
To exercise due diligence and vigilance in carrying out its function and duties under the Investment
Management Agreement and comply with the Act, directives and guidelines issued by the relevant
authorities from time to time.
To conduct market, technical and economic research to identify suitable investments and to facilitate
optimal asset allocations for the Funds.
To endeavour to use its professional discretion to reallocate assets at the most appropriate times with
the aim to optimising returns for the Unit Holders of the Funds.
To seek to invest in the most suitable assets within each class of assets.
To submit recommendation to the Investment Committee for review and approval of portfolio
strategies, at the Investment Committee meeting to be held monthly.
11.9
Designated Investment Manager of the Funds
The designated Investment Managers for the respective Funds are: Permodalan Nasional Berhad undertakes the investment management of PNB SIF. The designated Investment
Manager for the Fund is Encik Wan Roshdi bin Wan Musa, whose profile is set out on page 169.
MIM undertakes the investment management for AMBILTF.
Designated Investment Manager for AMBILTF
Mr Imam Subhan Kasman, Portfolio Manager, Equity, joined MIM in July 2005. He started his career with
CIMB as a corporate banker back in 1999 soon after graduating from Herfordshire University, UK with an
Honours Degree in Accountancy. After 2 years of service with the merchant bank, he then entered the asset
management industry by joining CAFM as a Fixed Income Analyst. Subsequently in 2003, he was absorbed into
the Equities Division as Asset Equity Fund Manager cum Dealer and obtained his Fund Management
Representative licence. He has about 5 years experience in the fund management industry. He currently
overseas various types of equity portfolio including both syariah and non-syariah mandates for institutions,
unit trusts and high net worth clients. He is the holder of Fund manager’s Representative licence (now known
as Capital Markets Services Representative’s licence). He obtained his licence from SC on 11 July 2005.
CIMB-Principal undertakes the investment management for AMBBTF, AMBITF, AMBEBTF, AMBDI and AMBDA.
Designated Investment Manager for AMBBTF, AMBITF, AMBEBTF, AMBDI and AMBDA.
Cik Nor Hanifah binti Hashim is a portfolio manager for CIMB Principal and had joined CIMB Principal from
CIMB in January 2005. She was previously the Head of Fixed Income Services at CIMB. She was with CIMB’s
Debt Markets and Derivatives Department for almost 12 years and had been managing fixed income portfolios
for CIMB’s clients. She received a bachelor’s degree of Science in Economics & International Relations from the
University of Wisconsin Madison, USA and an American Associate of Arts Degree from the State University of
New York at Buffalo, USA. She is a member of the Financial Markets Association of Malaysia. She holds a
Capital Markets Services Representative’s Licence for fund management under the Act.
UOB-OSK Asset Management Sdn Bhd (UOB-OSKAM) undertakes the investment management of the
AMBETF, AMBVTF, AMBLTF Today, AMBLTF 2014, AMBUTF, AMBSCTF and AMBDY. With effect from
November 17, 2008, the External Investment Manager of AMBUTF and AMBSCTF has been changed from MIM
to UOB-OSKAM. The designated fund manager for the Funds is Ms. Lim Suet Ling, whose profile can be found
on page 171 of the Master Prospectus. She is supported by the other members of the investment team.
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HwangDBS Investment Management Berhad (HwangDBS IM) undertakes the investment management of
AMBDTF. The designated fund manager for AMBDTF is Mr. Teng Chee Wai, whose particulars are set out on
page 172. He is supported by the other members of the investment team. The External Investment Manager is
responsible for the daily portfolio management of AMBDTF, recommending strategic investment decisions and
policies to the Investment Committee for approval and implementation. In addition, they are also responsible
for ensuring that the investments of AMBDTF comply with the investment guidelines of AMBDTF.
11.10
Management Company’s Delegates
The Manager has appointed HSBC Trustee (Malaysia) Berhad to undertake the valuation of AMBDTF.
HSBC (Malaysia) Trustee Berhad is a member of the HSBC Plc. group of companies and forms part of the global
network of trust companies within HSBC Holdings Plc. Since 1993, HSBC (Malaysia) Trustee Berhad has
acquired experience in the administration of unit trust funds and as at LPD, HSBC has a workforce of 49
employees consisting of 37 executives and 12 non-executives.
HSBC is responsible for the computation of NAV of AMBDTF in accordance with the requirements of the
Prospectus and the Deed. HSBC will report to the Manager the value of investment of the Fund after the end
of each Business Day.
11.11
Declaration of Conflict of Interest Involving EIMs
The Manager has in place policies and procedures to deal with any conflict of interest situations. In making an
investment transaction for the Funds, the EIMs will not make improper use of its positions in managing the
Funds to gain, directly or indirectly, any advantage or to cause detriment to the interests of Unit Holders.
As at LPD, to the best of the Manager’s knowledge, there has been no occurrence of conflict of interest
involving the EIMs. The EIMs are the company independent from the Manager except for PNB as PNB is
deemed a related party transaction to the Manager.
11.12
Material Litigation and Arbitration
As at LPD, there is no material litigation or arbitration, including any pending or threatened and there are no
facts likely to give rise to any proceedings, which might materially affect the business / financial position of the
Manager or any of its delegates.
However, there is an ongoing legal suit which had commenced in 2004 against the MIM and another party in
which former clients of MIM are seeking to recover losses arising from their purchase of certain private
placement shares through MIM. MIM has appointed a reputable firm of solicitors to defend the claim. MIM's
solicitors are of the opinion that MIM has a reasonable defence to the claim. The hearing was concluded in 8
June 2010, however the judge has reserved the decision until further notice.
Subsequently, two (2) legal suits commenced in 2009 and 2010 respectively, against MIM and two different
parties in which MIM has appointed the same firm of solicitors to defend all allegations against MIM. One legal
suit is in relation to investment in bonds that has been downgraded subsequent to the purchase whilst the
other suit is from a non-discretionary client that claimed MIM had not affected any purchase or sale to his
portfolio that resulted in his investment losses. The latter claim was however dismissed by the court with cost.
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12 The Trustees of the Funds
12.1
Profile of Universal Trustee (Malaysia) Berhad
Universal Trustee (Malaysia) Berhad (UTMB) is the Trustee of AMBUTF, AMBBTF and AMBITF. Incorporated in
1974, UTMB has shareholders’ funds of RM6,025,529 and a paid-up share capital of RM500,000. UTMB has
more than 10 years of experience in handling unit trust matters. The Trustee had a pretax profit of
RM1,037,164 for the year ended December 31, 2009. The Trustee employs 32 experienced personnel
comprising 19 executives and 13 non-executives as at LPD and currently has 35 unit trust schemes under its
trusteeship.
Financial Performance
Paid-up capital
Shareholders' funds
Turnover
Pre-tax profit
Profit after taxation
(RM)
(RM))
(RM)
(RM)
(RM)
Year Ended 31 December
2009
2008
2007
500,000
500,000
500,000
6,025,529
5,786,875
5,529,284
3,591,350
4,166,722
4,082,925
1,037,164
1,256,263
993,028
801,154
1,007,591
786,735
Board of Directors
Tan Sri Dato‘ IR. Talha Bin Haji Mohamad Hashim
Y.A.M. Tunku Dato’ Seri Nadzaruddin ibni Almarhum Tuanku Ja’afar
Azrin Mirzhan Bin Kamaluddin (alternate to Y.A.M. Tunku Dato’ Seri Nadzaruddin ibni Almarhum Tuanku
Ja’afar)
Huang Chang Yi
Emily Huang Ye (alternate to Huang Chang Yi)
Wong Sai Fong
Putri Noor Shariza Binti Noordin Omar (alternate to Wong Sai Fong)
Profile of The Management Staff of the Trustee
Mr Liew Kok Wah is the Chief Executive Officer cum Company Secretary of UTMB. He joined UTMB in July
1988 and is responsible for the overall management of UTMB. He is a Fellow Member of CIMA, England, a
Registered Accountant of the MIA and a Member of the British Institute of Management, England. He started
his career as an Assistant Accountant with McAlister & Co Ltd from 1971 to 1974 and upon completion of the
CIMA examination in 1978, he was appointed as the Senior Management Accountant/Lecturer in the London
School of Accountancy, England, till October 1982. Upon his return to Malaysia he was the Group Finance and
Administration Manager with the Harpers Group till June 1983, before joining Faber Merlin Berhad as the
Group Management Accountant from 1986 till June 1988, and was also the Director of Studies in the Goon
Professional Centre Sdn Bhd.
Ms Punithamalar Veluppillai is the Senior Manager and is a Fellow Member of the ACCA and prior to joining
UTMB in 1994, she was handling accounts and tax matters for one of the subsidiaries of Tanjung Plc. In 1997
she joined EON Berhad and was assisting the treasury department. In 1998 she was appointed as the Assistant
Manager in UTMB. She is now responsible for supervising the overall functions of UTMB.
Ms Agnes Lai Yoke Ping is the Manager and is an Associate Member of the Chartered Institute of Management
Accountants, England. Prior to her present appointment in 1996, she has more than 10 years working
experience in the finance and administration division with a wholly owned subsidiary of a public listed
company. She has been handling unit trusts matters since joining UTMB and is currently responsible for the
compliance division of unit trust funds and human resource function of UTMB.
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Kumar. P is the Legal & Compliance Manager. He was appointed on 3rd May 2010 and he graduated with LLB
(Hons) from the University of Wolverhampton. He is responsible for the overall legal and compliance matters
of UTMB. He is responsible for private debt securities, clubs and timeshares. Prior to joining UTMB, he has
been working in the banking and telecommunication industry, attending to legal and regulatory compliance
matters. He also has experience in handling legal matters in areas of litigation, M&A, joint ventures, corporate
finance exercises, capital markets, financial laws regulations and regulatory guidelines.
12.1.1
Trustee’s Responsibility Statement
The Trustee has given confirmation of its willingness to assume the position as Trustee of the respective Fund
and undertakes all the obligations in accordance with the Deed, all relevant laws.
12.1.2
Trustee’s Disclosure of Material Litigation and Arbitration
As at LPD, UTMB advises that to the best of its knowledge, there is no material litigation or arbitration,
including those pending or threatened, and any facts likely to give rise to any proceedings which might
materially affect the business/financial position of the UTMB or any of its delegates.
12.2
Profile of HSBC (Malaysia) Trustee Berhad
The Trustee is HSBC (Malaysia) Trustee Berhad (Company No. 1281-T), a company incorporated in Malaysia
since 1937 and registered as a trust company under the Trust Companies Act 1949, with its registered address
th
at Suite 901, 9 Floor, Wisma Hamzah-Kwong Hing, No.1 Lebuh Ampang, 50100 Kuala Lumpur. The Trustee is a
member of the HSBC Holdings Plc. group of companies and forms part of the global network of trust
companies within HSBC Holdings Plc.
Financial Position
The Trustee has a paid-up capital of RM500,000.00. As at 31 December 2009, its shareholders’ funds totaled
RM17.52 million and it achieved a profit before tax of RM10.93 million.
The following is a summary of the past performance of the Trustee based on audited accounts for the last 3
years:
2009
(RM)
Paid-up Share Capital
Shareholders’ Funds
Turnover
Profit before Tax
Profit after Tax
500,000
17,521,023
18,006,590
10,930,880
8,200,407
Year Ended 31 December
2008
(RM)
500,000
14,353,116
17,843,570
10,470,535
7,754,577
2007
(RM)
500,000
6,598,539
16,911,088
9,164,852
6,442,083
Experience in Trustee Business
Since 1993, the Trustee has acquired experience in the administration of unit trusts and as at LPD is the
Trustee for 192 unit trust funds (including Exchange Traded Funds and Wholesale Funds).
As at LPD, the Trustee has a workforce of 49 employees consisting of 37 executives and 12 non-executives. A
good number of the staff has been with the Trustee for many years. This element of continuity reflects an
intrinsic characteristic of trust services. The Trustee also believes in building team and talents by recruiting
new members with relevant experiences to replace the long serving retired colleagues.
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Each client’s account is under the supervision of a trust officer who is able to focus his personal attention on
the administration of the account and reports directly to his manager.
The Trustee also has a Compliance Section whose responsibilities is to ensure that the Trustee’s business is
carried on in accordance with all relevant laws, codes, rules and standards of good market practice.
Board of Directors
Mr Jonathan William Addis
Ms Lim Liang Hua
Dato’ Ranita Mohd Hussein
Ms Zainon Baba
Mr Alastair E Murray
Mr Tay Shik Heng
Mr Tay Swee Gim (Alternate to Ms Lim Liang Hua)
Ms Hew Su Chan (Alternate to Mr Tay Shik Heng)
Ms Wong Su Kuin (Alternate to Mr Alastair E Murray)
Profile of Key Personnel
Ms Lim Liang Hua – Managing Director
She joined HSBC (Malaysia) Trustee Berhad in April 2004 and brings with her over 20 years of legal advisory
and problem solving skills in the banking and financial services industry. She holds a Bachelor of Economics
and Bachelor of Laws (LLB) from Monash University, Australia. She was admitted to practice as a Barrister &
Solicitor in Victoria, Australia in 1984 and was called to the Malaysian Bar in 1985. She was in private practice
for three years in the Klang Valley before joining the corporate sector, namely the banking and financial
institutions industry. She was the Chief Legal Adviser and Company Secretary for the Phileo Allied Bank Group
and the United Overseas Bank Group in Malaysia. Prior to her joining HSBC, she was Chief Executive Officer in
an established trust company.
Mr Yee Yit Seeng – Chief Operating Officer
He joined HSBC (Malaysia) Trustee Berhad in July 1984. He holds a Diploma in Banking and Finance and is a
Senior Associate of Institut Bank-Bank Malaysia. He has more than 22 years of experience in trust operations
including client service, systems/projects & office administration, compliance, internal control & audit, and
business development. He was also seconded to the HSBC Back-end Processing Office in Cyberjaya, Malaysia
to support the global securities operations.
Puan Maziah Yong – Head, Unit Trust
She joined HSBC (Malaysia) Trustee Berhad in November 2007. She holds an Advanced Diploma In Law from
Institut Teknologi MARA. Prior to her joining HSBC, she has more than 15 years working experience in trust
administration, especially relating to unit trust schemes.
Ms Lim Gim Lee – Head, Fund Administration
She joined HSBC (Malaysia) Trustee Berhad in December 2008. She holds an Advanced Diploma in Business
Administration - Institute of Business Administration and Management (IBAM). She was one of the pioneer
staff in setting up two unit trust management companies and has more than 13 years working experience in
the unit trust industry.
Ms Vimala Mahathevan - Head, Business Support
She joined HSBC (Malaysia) Trustee Berhad in January 2010. She holds a Diploma in Banking and Finance of
Institut Bank-Bank Malaysia and a Diploma in Computer Studies from the National Centre of Computing and
Information Technology (NCC). She has 9 years of general banking experience and 16 years of experience in
the securities industry which includes overseeing the settlement operations for foreign institutional clients,
client servicing, system implementation and being the liaison party with regulatory bodies such as Bursa
Malaysia. Prior to joining HSBC Trustee, she was the Head of Settlement, HSBC Securities Services, SubCustody and Clearing, in Malaysia.
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Ms Lau Sook Yee – Head, Compliance
She joined HSBC (Malaysia) Trustee Berhad in September 2005. She has more than 20 years experience in
banking and treasury operations in both merchant and commercial banks.
Ms Janice Chang Hui Ching – Head, Corporate Trust
She joined HSBC (Malaysia) Trustee Berhad in November 2004. She holds a Bachelor of Business majoring in
Economics & Finance from RMIT University, Australia. Prior to her joining HSBC, she has more than 7 years
experience in Unit Trust Schemes and Corporate Bonds/Private Debt Securities in an established trust
company.
Mr Yap Fook Meng – Head, System & Admin
He joined HSBC (Malaysia) Trustee Berhad in August 2007. He holds a Diploma in Banking and Finance and is a
Senior Associate of Institut Bank-Bank Malaysia. He has more than 25 years experience in banking operations,
including systems implementation and support with HSBC Bank Malaysia Berhad. Besides local banking
experience, he had been seconded to other HSBC Group offices in United Kingdom and Brazil for systems
implementation and support.
Ms Tang Su Yin - Head, Due Diligence
She joined HSBC (Malaysia) Trustee Berhad in July 2010. She holds a LLB (Honours) from University of Hull,
United Kingdom and a Master of Finance from Royal Melbourne Institute of Technology, Australia. She has
more than 8 years experience in the unit trust industry which include compliance monitoring, legal advisory
and product development.
Ms Ng Pek Wan - Head, Documentation
She joined HSBC (Malaysia) Trustee Berhad in July 2010. She holds a Bachelor of Laws (LLB) from University of
London and was called to the Malaysian Bar in 2000. Prior to joining HSBC, she was in private practice for
almost 10 years with experience in commercial litigation and various corporate work.
12.2.1 Trustee’s Responsibility Statement
The Trustee has given its willingness to assume the position as Trustee of the Fund and all the obligations in
accordance with the Deed, all relevant laws and rules of law. The Trustee shall be entitled to be indemnified out
of the Fund against all losses, damages or expenses incurred by the Trustee in performing any of its duties or
exercising any of its powers under this Deed in relation to the Fund. The right to indemnity shall not extend to
loss occasioned by breach of trust, wilful default, negligence, fraud or failure to show the degree of care and
diligence required of the Trustee having regard to the provisions of the Deed.
12.2.2 Trustee’s Disclosure of Material Litigation
As at 31 July 2010, the Trustee is not engaged in any material litigation and arbitration, including those
pending or threatened, and is not aware of any facts likely to give rise to any proceedings which might
materially affect the business/financial position of the Trustee and any of its delegates.
12.2.3 Trustee’s Delegate
The Trustee has appointed The Hongkong And Shanghai Banking Corporation Ltd as custodian of the quoted
and unquoted local investments of the Fund. The assets of the Fund are held through their nominee
company, HSBC Nominees (Tempatan) Sdn Bhd. If and when the Fund should invest overseas, HSBC
Institutional Trust Services (Asia) Limited will be appointed as the custodian of the foreign assets of the Fund.
Both The Hongkong And Shanghai Banking Corporation Ltd and HSBC Institutional Trust Services (Asia)
Limited are wholly owned subsidiaries of HSBC Holdings Plc, the holding company of the HSBC Group. The
custodian’s comprehensive custody and clearing services cover traditional settlement processing and
safekeeping as well as corporate related services including cash and security reporting, income collection and
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corporate events processing. All investments are automatically registered into the name of the Fund. The
custodian acts only in accordance with instructions from the Trustee.
The Trustee is not liable for central securities depositories or clearing and/or settlement systems in any
circumstances.
Trustee’s Delegates
1) The Hongkong And Shanghai Banking Corporation Limited (As Custodian) and assets held through
HSBC Nominees (Tempatan) Sdn Bhd (Co. No. 258854-D)
No 2 Leboh Ampang
50100 Kuala Lumpur
Telephone No: (603)20700744 Fax No: (603)20729787
2) HSBC Institutional Trust Services (Asia) Limited
6th Floor, Tower One
HSBC Centre
No 1 Sham Mong Road
Kowloon, Hong Kong
Telephone No: (852)25336333
Anti-Money Laundering Provisions
The Trustee has in place policies and procedures across the HSBC Group, which may exceed local regulations.
Subject to any local regulations, the Trustee shall not be liable for any loss resulting from compliance of such
policies, except in the case of negligence, willful default or fraud of the Trustee.
12.3
Profile of Malaysian Trustees Berhad
Malaysian Trustees Berhad (MTB) is one of the appointed Trustees of AMB. MTB, (Company No. 21666-V), a
company incorporated in Malaysia in January 1975, first commenced operations in August 1995 and is
registered as a trust company under the Trust Companies Act 1949. Its registered address is at Level 19,
Menara Prudential, No.10, Jalan Sultan Ismail, 50250 Kuala Lumpur. The Trustee is backed by 4 substantial
shareholders, PacificMas Berhad, OCBC Bank (Malaysia) Berhad, United Malacca Berhad and RAM Consultancy
Services Sdn Bhd. The Trustee has been in the unit trust industry for 9 years. As at LPD, MTB has staff strength
of 19 (13 executives and 6 non-executive) and has 5 funds under its trusteeship.
Financial Performance
The Trustee has a paid-up capital of RM550,000. As at December 31, 2009, its shareholders’ funds totalled
RM7,918,994 and it achieved a profit before tax of RM2,553,933.
The following is a summary of the past performance of the Trustee based on its audited accounts for the last 3
years:
Paid-up capital
Shareholders' funds
Turnover
Pre-tax profit
Profit after taxation
Net earning per share
Net dividend per share
(RM)
(RM)
(RM)
(RM)
(RM)
(RM)
(RM)
Year Ended 31 December
2009
2008
500,000
550,000
7,918,994
6,725,852
4,580,227
4,840,672
2,553,933
3,138,063
1,932,407
2,357,613
17.56
21.43
-
2007
550,000
8,759,932
4,914,918
3,323,833
2,562,557
23.30
-
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Board of Directors
Mr. Choi Siew Hong
Mr. Lai Wan
Mr. Ng Hon Soon
Mr. Lee Wai Kit
Profile of Key Personnel of The Trustee
Mr. Tay Kok Leong is the General Manager of MTB who is responsible for the overall management and growth
of MTB. Mr Tay graduated from Universiti Sains Malaysia in 1977 with a Bachelor of Social Science. Mr Tay
joined Pacific Bank in 1978 and rose to the position of First Vice President and later joined Maybank after the
bank merger exercise in 2001. He was the group general manager of a food-based company in Penang before
joining MTB in 2005.
Ms. Vanaja D/O N.S. Kanagaretnam is the Manager. She graduated with a Diploma in Accountancy from
Politeknik Ungku Omar. Prior to joining MTB, she was with another trustee company, responsible for trustee
work relating to unit trust funds and is familiar with trustee duties and the guidelines established by the
Companies Commission of Malaysia and SC. She has been with MTB since August 1995.
Ms Lim Poh Choo is the Manager of Compliance and Monitoring of MTB. She is a graduate of the Association
of International Accountants, UK. Prior to her joining MTB, she was attached to the corporate finance
department of a property development company. She has more than 12 years experience in corporate
finance.
Ms. Wong Chooi Yin, Deputy Manager, Finance and Administration, joined MTB in April 2000 as Executive,
Finance and Administration. Her duties include the maintenance of all trust accounts and records as well as the
accounts of MTB. She is also responsible for the administration matters of the company. Ms Wong graduated
with a Bachelor of Commerce (Economics and Finance) degree from the Curtin University of Technology,
Australia. Prior to joining MTB, she was attached to a consultancy firm.
12.3.1
Trustee’s Responsibility Statement
The Trustee has given confirmation of its willingness to assume the position as Trustee of the respective Fund
and undertakes all the obligations in accordance with the Deed, all relevant laws.
12.3.2
Trustee’s Disclosure of Material Litigation and Arbitration
As at LPD, there is no current material litigation and arbitration, including any pending or threatened, and
there are no facts likely to give rise to any proceedings, which might materially affect the business / financial
position of MTB or of any of its delegates, except for the following:
Tanco Holdings Berhad (THB)
MTB, acting as Security Trustee received a sealed writ of summons from THB to restrain MTB from disposing
THB’s assets pursuant to an occurrence of Event of Default due to non-payment of interest and principal to
Lehman Brothers Commercial Corporation Asia Ltd. (“LBCCA”) (in liquidation). MTB has appointed Messrs.
Chooi & Co to act for MTB and the fees are to be borne by LBCCA. LBCCA has also appointed Messrs. Shearn
Delamore & Co to act on their behalf for the abovementioned suit. The injunction was unsuccessfully set aside.
As instructed by LBCCA, MTB filed an appeal against court’s decision.
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12.3.3
Trustee’s Delegate
Malaysian Trustees Berhad has delegated its custodian function to Maybank Custody Services (MCS), a unit
within Maybank.
MCS commenced operations in 1983 and has been a custodian for unit trust funds since 1989. It provides
clearing and custody services for Malaysian equity and fixed income securities to domestic and foreign
institutional clients. In addition, it offers global custody services to domestic institutions/clients that have
foreign investments. MCS has staff strength of 30 employees, comprising 25 executives and 5 non-executives
as at LPD.
12.4
Profile of AmanahRaya Trustees Berhad
ART was incorporated under the Companies Act 1965 on March 23, 2007 and registered as a trust company
under the Trust Companies Act 1949. ART is a subsidiary of Amanah Raya Berhad (ARB) which is wholly owned
by the Minister of Finance (Incorporated). ART took over the corporate trusteeship functions of ARB and
acquired ARB’s experience of more than 44 years in trustee business. ART has been registered and approved
by the SC to act as trustee to unit trust funds. ART will subsequently substitute ARB as the existing trustee for
the 1 unit trust fund under ARB’s trusteeship and has 141 unit trust funds under ART’s trusteeship. As at LPD,
ART has 70 staff (48 Executives and 22 Non-Executives).
ART has an authorised capital RM5,000,000. Its issued and paid-up share capital is RM2,000,000 and
RM1,000,000 respectively.
The shareholders of ART are:
% of equity
20
20
20
20
Amanah Raya Berhad (344986-V)
Amanah Raya Nominees (Tempatan) Sdn Bhd (434217-U)
Amanah Raya Capital Sdn Bhd (549057-K)
AmanahRaya Capital Group Sdn Bhd (760289-U)
AmanahRaya Modal Sdn Bhd (760322-X)
Amanah Raya Nominees (Asing) Sdn Bhd (684546-P)
10
10
FINANCIAL PERFORMANCE
The following is a summary of the past performance of ART based on audited financial statements for
financial year ended December 31, since its incorporation on March 23, 2007:
Year Ended 31
Year Ended 31
Year Ended 31
December 2009
December 2008
December 2007
RM'000
RM'000
RM'000
1,000
1,000
Paid-up share capital
1,000
3,624
6,511
Shareholders' funds
5,999
20,024
10,343
Turnover
17,282
14,340
7,638
Pretax profit
11,783
10,625
5,511
Profit after taxation
8,597
Board of Directors
Datuk Idrus Bin Harun – Chairman / Independent
Hajjah Habsah Binti Bakar – Director / Chief Executive Officer / Non-Independent
Dato’ Ahmad Rodzi Bin Pawanteh – Director / Non-Independent
Datin Aminah Binti Pit Abd Raman – Director / Independent
Puan Alina Binti Hashim – Director / Non-Independent
Tuan Haji Ab. Gani Bin Haron – Director / Independent
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Dato’ Haji Ahmad Kamal Bin Abdullah Al-Yafii – Director / Independent
Encik Zainudin Bin Hj. Suhaimi – alternate to Hajjah Habsah Binti Bakar
Key Management Staff
Hajjah Habsah Binti Bakar - Chief Executive Officer
Encik Zainudin Bin Hj. Suhaimi - General Manager
Encik Arzlee Bin Abdul Rahman – Assistant General Manager
Encik Zainul Abidin Bin Hj. Ahmad - Company Secretary
Encik Azril Bin Abd Kadir - Compliance Manager
Encik Mohd Sofian Bin Hj. Kamaruddin – Debt Capital Markets and Trusts Section Manager
Encik Mohd Aziyan Bin Abdullah – Finance and Corporate Service Manager
Profile of the Key Management Staff
Hajjah Habsah binti Bakar - Chief Executive Officer
Hajjah Habsah Binti Bakar is the Director and Chief Executive Officer of ART effective from 16 February 2007.
She has served as General Manager at Amanah Raya Berhad for 12 years. She was in charge of various
departments such as Corporate Trust, Legal, Branch, Marketing, Corporate Communications, Product
Development and Customer Relationship Management of Amanah Raya Berhad during that tenure. She
graduated from University of Malaya with a Degree in Law with Honours in 1985 and holds a postgraduate
Diploma in Syariah Law and Practice from the International Islamic University Malaysia in 1997. She has vast
experience in legal administration since joining the Judicial and Legal Service in 1985. She has served at the
Attorney General’s Chambers, Ministry of Housing and Local Government, the High Court and the Department
of Public Trustee. She is also a Director of Amanah Raya Nominees (Tempatan) Sdn. Bhd and oversees Amanah
Raya Labuan Limited.
Encik Zainudin Hj Suhaimi
Encik Zainudin Hj Suhaimi is the General Manager of ART. He holds a Degree in Business Administration
(Finance) from Universiti Putra Malaysia and a Diploma in Business Studies from Universiti Teknologi MARA
(UiTM). He is in charge of the operations of ART. He has served Corporate Trust Department of Amanah Raya
Berhad since 1992 and later was seconded to ART for about 1 year. He officially joined ART in June 2008. He is
also a trust officer at Amanah Raya Labuan Limited. He is an associate member of the Financial Planning
Association of Malaysia since 2005.
Encik Arzlee Abdul Rahman
Encik Arzlee Abdul Rahman has recently joined ART in July 2009 as the Assistant General Manager. He holds a
B.Sc. in Economics/Finance from The University of Hartford, Connecticut, USA. Prior to joining ART, he
managed Amanah Raya Nominees (Tempatan) Sdn Bhd for about 5 years, in which he developed custodial &
securities services. Overall, he has more than 15 years working experience in the financial industry, including
corporate forex & money market in a local bank treasury, stock broking company, insurance and finance
companies.
Encik Zainul Abidin Bin Hj. Ahmad
Encik Zainul Abidin Bin Hj. Ahmad is the Group Company Secretary. He has more than 14 years’ working
experience in legal and secretarial matters. He began his career in 1990 as a Legal Assistant with Messrs Kam
Woon Wah & Company. In February 2002, he joined ARB where he oversees the secretarial matters of the
Group.
Encik Azril Bin Abd Kadir
Encik Azril Bin Abd Kadir is the Manager of Compliance Department at ART. He joined ART in January 2008 and
brings with him more than 7 years experience in the collective investment scheme industry. He graduated with
a Bachelor of Science in Business Administration from the University of Missouri Columbia. Prior to joining
ART, he was the registered compliance officer of a local asset management company.
Encik Mohd Sofian Bin Hj. Kamaruddin
Encik Mohd Sofian Bin Hj. Kamaruddin is the Debt Capital Markets and Trusts Section Manager of ART. He
holds Master in Business Administration from Universiti Teknologi MARA and Bachelor of Accountancy (Hons)
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from Universiti Putra Malaysia. He is in charge of the debenture trusteeship segment of ART. He had served at
the Audit and Compliance Division of Malaysia Monetary Exchange Berhad (presently known as Bursa
Derivatives Malaysia Berhad) as an audit executive and subsequently as Compliance Officer in a futures
broking company for more than 5 years. He has served Corporate Trust Department of Amanah Raya Berhad
since March 2003 and later was seconded to ART for about a year. He officially joined ART in June 2008. He is
also a member of Malaysian Institute of Accountants.
Encik Mohd Aziyan Bin Abdullah
Encik Mohd Aziyan Bin Abdullah is the Accountant of AmanahRaya Trustees Berhad. He is a member of the
Malaysian Institute of Accountants. He holds a Bachelor (Hons) of Accountancy from Universiti Teknologi
MARA. He joined AmanahRaya Trustees Berhad on 1 April 2009 where he oversees the finance and
administrative matters of the company.
12.4.1
Trustee’s Responsibility Statement
The Trustee consents and agrees to assume the position as Trustee of the Fund and undertakes all the
obligations in accordance with the Deeds, all relevant laws and rules of law, and agree and undertake to
provide an indemnity to the Manager for the benefit of the registered holders of the Funds for any loss
incurred as a result of any non-performance of the Trustee.
12.4.2
Trustee’s Disclosure of Material Litigation and Arbitration
As at LPD, ART is not engaged in any material litigation or arbitration either as plaintiff or defendant, and the
Trustee is not aware of any proceedings, pending or threatened or of any facts likely to give rise to any
proceedings which might materially affect the business financial position of ART or any of its delegates.
12.4.3
Trustee’s Delegate for AMBDA
AmanahRaya Bhd has delegated its custodian function of AMBDA to Maybank Custody Services (MCS), a unit
within Malayan Banking Berhad. MCS commenced operations in 1983 and has been a custodian for unit trust
funds since 1989. It provides clearing and custody services for Malaysian equity and fixed income securities to
domestic and foreign institutional clients. In addition, it offers global custody services to domestic
institutions/clients that have foreign investments. MCS has staff strength of 30 employees, comprising 23
executives and 7 non-executives as at LPD.
12.5
Duties and Obligations of the Trustees
The Trustee’s main functions are to act as trustee and custodian of the assets of the Fund and to safeguard the
interests of Unit Holders of the Fund. In performing these functions, the Trustee has to exercise all due care,
diligence and vigilance and is required to act in accordance with the provisions of the Deed, Capital Markets
and Services Act 2007 and the Securities Commission’s Guidelines on Unit Trust Funds. Apart from being the
legal owner of the Fund’s assets, the Trustee is also responsible for ensuring that the Manager performs its
duties and obligations in accordance with the provisions of the Deed, Capital Markets and Services Act 2007
and the Guidelines.
The duties and obligations imposed on the Trustees are as follows: To act as custodian of the assets of the Funds and to safeguard the interests of Unit Holders. The Trustees
are to actively monitor the administration of the Funds by the Manager to ensure that the interests of the
Unit Holders are upheld at all times. In discharging its duties, the Trustees should not only depend on
submission of reports by the Manager;
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The Trustees are to report to the SC if it is of the view that the Manager has not acted in the interests of Unit
Holders or in accordance with the provisions of the Deeds or that it has failed to comply with the Guidelines
and the Act;
Ensure that the Manager does not make improper use of its position in managing the Fund to gain, directly
and indirectly, an advantage for itself or any other person or to cause detriment to the interest of Unit
Holders;
To act continuously as Trustees under the Funds until such Funds are terminated or until the Trustees have
retired from such Funds;
To show the degree of care and diligence required of a Trustees in carrying out its functions and duties and in
protecting the rights and interest of the Unit Holders to which the Deeds relates;
To keep or cause the Manager to keep proper records of all transactions, dividends, interests and income
received and distributed and accounts in relation to the Funds;
To be informed of any investments or disposals which the Manager undertakes not later than the next
Business Day after the day in which the transactions were undertaken;
To be responsible for the collection and periodical distribution of income earned from the investment
portfolio to the Unit Holders subject to delegation of such duties to the Manager;
To require the Manager to keep it fully informed as to details of the Manager’s policies on investments and
any changes thereof. Whenever it is of the opinion that these policies are not in the interests of the Unit
Holders, the Trustees may, after considering any representations made by the Manager in respect of that
opinion, summon a meeting of Unit Holders to consider its opinion and the actions that may be taken against
the Manager; and
To cause the accounts to be audited at the end of each accrual period / financial year by the auditor and that
each Unit Holder of the Funds is furnished with a copy of the audited accounts by post within 2 months from
the date on which the accounts are balanced and closed in respect of each year.
12.6
Retirement, Removal or Replacement of the Trustee
The Trustee may retire upon giving twelve (12) months’ notice to the Manager of its desire to do so, or such
shorter period as the Manager and the Trustee may agree, and may by Deed appoint in its stead or as an
additional trustee a new trustee approved by the relevant authorities and under any relevant law. Pursuant to
section 299(1) of the Act, it is the duty of the Manager to remove the Trustee as soon as it becomes aware that
the Trustee: •
•
•
•
Has ceased to exist;
Has not been validly appointed;
Is not eligible to be appointed or to act as Trustee under section 290 of the Act;
Has failed or refused to act as Trustee in accordance with the provisions or covenants of the Deed or the
provisions of the Act;
• Is under investigation for conduct that contravenes the Trust Companies Act, 1949, the Trustee Act, 1949,
the Companies Act, 1965, or any securities law;
• When a receiver is appointed over the whole or a substantial part of the assets or undertaking of the
existing trustee and has not ceased to act under the appointment or a petition is presented for the winding
up of the existing trustee (other than for the purpose of and followed by a reconstruction, unless during or
following such reconstruction the existing trustee becomes or is declared to be insolvent).
The Trustee may be removed and another Trustee (duly approved as aforesaid) may be appointed by a special
resolution of the Unit Holders at a duly convened meeting of which notice has been given to the Trustee and
the Manager. The Manager will summon a meeting of the Unit Holders for the purpose of considering and if
thought fit, passing a resolution for the removal of the Trustee in the event that the Unit Holders request the
Manager to do so, in the manner as stated in the Deeds of the respective Funds.
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12.7
Powers of the Trustee to Remove or Replace the Manager
The Manager may be removed by the Trustee on the grounds that the Manager:
(a) the Manager has gone into liquidation, except for the purpose of amalgamation or reconstruction or some
similar purpose; or has had a receiver appointed; or has ceased to carry on business; or is in breach of any
of its obligations or duties under the Deed or the relevant laws; or has ceased to be eligible to be a
management company under the relevant laws; or
(b) the Manager has failed or neglected to carry out its duties to the satisfaction of the Trustee and the
Trustee considers that it would be in the interests of Unit Holders for it to do so after the Trustee has
given notice to it of that opinion and the reasons for that opinion, and has considered any representations
made by the Manager in respect of that opinion, and after consultation with the relevant authorities and
with the approval of the Unit Holders by way of a Special Resolution.
In any of the above said grounds, the Manager shall upon receipt of a written notice from the Trustee ipso
facto cease to be the management company of the Fund. The Trustee shall, at the same time, by writing
appoint some other corporation approved by the relevant authorities to be the management company of the
Fund; such corporation shall have entered into such deed or deeds as the Trustee may consider to be
necessary or desirable to secure the due performance of its duties as management company for the Fund.
12.8
Statement of Disclaimer
The Trustee is not liable for doing or failing to do any act for the purpose of complying with law, regulation or
court orders.
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13 Salient Terms of the Deeds
The following is a summary of the Deeds. Certain salient terms of the Deeds are summarised in other sections
of this Prospectus. Recipients of this Prospectus and all prospective investors in the Units should refer to the
Deeds to confirm specific information and to obtain a detailed understanding of the respective Funds. The
Deeds are available for inspection at the principal place of business of the Manager at 34th Floor, Menara PNB,
201-A, Jalan Tun Razak, 50400 Kuala Lumpur and the principal place of business of the respective Trustee.
The Deeds
The AMB Family of Funds is a family of trust funds constituted by the Deeds, as entered into between the
respective Trustees and AMB. The Deeds came into effect on the respective dates of registration by the SC.
Each Unit Holder shall be entitled to the benefit of and shall be bound by the terms and conditions of the
respective Deed.
Pursuant to the Deeds, the Trustee shall take into its custody or control all the assets of the Funds and hold the
same in trust for the Unit Holders in accordance with the Deeds and all relevant laws. The Deeds are governed
by, and shall be construed in accordance with, the laws of Malaysia.
1.
RIGHTS AND LIABILITIES OF UNIT HOLDERS
Rights of Unit Holders
A Unit Holders has the right, among others, to the following:(a)
To receive the distribution of income (if any), participate in any increase in the value of the
units and to other such rights and privileges as set out under the Deed(s) for the Fund;
(b)
To call for Unit Holders’ Meetings, and to vote for the removal of the Trustee or the Manager
through a special resolution;
(c)
To exercise the cooling-off right (if applicable) ; and
(d)
To receive annual and interim reports.
However, a Unit Holder would not have the right to require the transfer to the Unit Holder of any of
the investments of the Funds. Neither would a Unit Holder have the right to interfere with or
question the exercise by the Trustee or the Manager on his behalf, of the rights of the Trustee as
trustee of the investments of the Funds.
Liabilities of Unit Holders
(a)
No Unit Holder is liable for any amount in excess of the purchase price paid for the Units as
determined pursuant to the Deed(s) at the time the Units were purchased;
and
(b)
Unit Holders shall not be under any obligation to indemnify the Trustee and / or the Manager
in the event that the liabilities incurred by the Trustee and the Manager in the name of or on
behalf of the Funds pursuant to and / or in the performance of the provisions of the Deed(s)
exceed the NAV of the Funds, and any rights of indemnity of the Trustee and / or the Manager
shall be limited to recourse to the Funds.
Note:
Please be advised that if you invest in units through an IUTA which adopts the nominee system of
ownership, you would not be considered to be a Unit Holder under the Deed and you may
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consequently not have all the rights ordinarily exercisable by a Unit Holder (for example, the right
to call for a Unit Holders’ Meeting and to vote thereat and the right to have your particulars
appearing in the register of Unit Holders of the Fund)
2.
MAXIMUM FEES AND CHARGES PERMITTED BY THE DEEDS
The maximum rates for the management fee, Trustee fee, sales charge and redemption fee are provided
in the Deeds and are set out in Section 1.3 of this Prospectus.
Currently no redemption charges are imposed upon redeeming of Units of the Funds except for PNB
SIF where a redemption charge is payable for early redemption of Units but not if Units are held till
the maturity date of the Fund. Details of the redemption charge of PNB SIF are set out in Section 1.3
and Section 7.1.2 of this Prospectus.
3.
INCREASE IN FEES AND CHARGES FROM THE LEVEL DISCLOSED IN THE PROSPECTUS AND THE
MAXIMUM RATE PROVIDED IN THE DEEDS
The management fee and the Trustee fee shall not exceed the maximum stated in the Deeds. The
annual Management Fee and the Trustee Fee cannot be charged at a rate higher than that disclosed
in the Prospectus unless the Manager and the Trustee have agreed on a higher rate in accordance with
the Deeds and Unit Holders have been notified of the higher rate and the effective date.
The sales and repurchase charges shall not exceed the maximum as set out in the Deeds. The
Manager may only charge a higher sales charge than that disclosed in the Prospectus in accordance
with the Deeds and all relevant laws.
4.
PERMITTED EXPENSES PAYABLE OUT OF THE FUNDS’ PROPERTY
Only expenses which are directly related and necessary may be charged to the Funds. These include
(but are not limited to) the following:
(i)
(ii)
(iii)
(iv)
(v)
commissions/fees paid to brokers in effecting dealings in the investments of the Funds shown
on the contract notes or confirmation notes;
taxes and other duties charged to the Funds by the Government and other authorities;
fees and other expenses properly incurred by the Auditor and/or Tax Agent appointed for the
Funds;
fees for the valuation of any investment of the Funds by independent valuers for the benefit of
the Funds; and
costs incurred for any modification of the Deeds or for meetings of Unit Holders (save where
such modification or meeting is convened for the benefit of the Manager and/or the Trustee).
The Deeds provide that expenses such as general overheads, costs for services expected to be
provided by the Manager, promotional expenses and expenses incurred in the registering and issuing
of the prospectuses (unless no service charges are levied on the Units sold) and the remuneration of
any delegate of the Manager, shall not be charged to the Funds. The Trustee shall ensure that all
expenses charged to the Funds are legitimate, not excessive and does not go beyond standard
commercial rates.
5.
REMOVAL, RETIREMENT AND REPLACEMENT OF THE MANAGER AND THE TRUSTEE
Please refer to section 13.7 of this Prospectus (in relation to the retirement, removal and replacement
of the Manager) and section 13.6 of this Prospectus (in relation to the retirement, removal and
replacement of the Trustee).
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6.
TERMINATION OF THE FUNDS
The commencement date of the Fund are as stated in the Deeds and continue until the Maturity Date (if
applicable) or if determined by the Trustee under the provisions in the Deeds. The Trustee shall as soon
as practicable after the determination of the Fund give to each of the Unit Holder notice of such
determination.
The Trustee may inter alia in any of the following events determine the Funds:a)
if the Manager shall go into liquidation (except a voluntary liquidation for the purpose of
reconstruction or amalgamation upon terms previously approved in writing by SC); or
b)
if in the opinion of the Trustee, the Manager has ceased to carry on business; or
c)
if in the opinion of the Trustee, the Manager has failed to comply with the Deed to the prejudice
of the Unit Holders.
and shall summon a meeting of Unit Holders in accordance with the provisions of the Deeds for the
purpose of seeking directions from the Unit Holders. If at any such meeting a special resolution to
terminate and wind up the Funds is passed by the Unit Holders, the Trustee shall apply to the Court
for an order confirming such special resolution.
7.
UNIT HOLDERS’ MEETING
The Unit Holders may apply to the Manager to summon a meeting for any purpose. Unless otherwise
required by law, the Manager shall, not later than 21 days of receiving an application from not less
than 50 or 1/10 in number, whichever is the lesser, of all Unit Holders, convene a meeting of the Unit
Holders. The Trustee and the Manager may convene a Unit Holders' meeting in accordance with the
Deed for any purpose.
The quorum for a meeting save and except for AMBILTF, AMBETF, AMBVTF and PNB SIF shall be 5
Unit Holders present in person or by proxy. No business shall be transacted at any meeting unless the
requisite quorum is present at the commencement of business.
In respect of AMBILTF, AMBETF and AMBVTF, the quorum for a meeting shall be 5 Unit Holders present in
person or by proxy provided always that the quorum for a meeting of the Unit Holders of the Fund convened
for the purpose of removing the Manager and/or the Trustee shall be 10 Unit Holders of the Fund whether
present in person or by proxy, who must hold in aggregate at least 50% of the Units of the Fund in circulation
at the time of the meeting. No business shall be transacted at any meeting unless the requisite quorum is
present at the commencement of business.
Further, in respect of PNB SIF, the quorum required for a meeting of the Unit Holders shall be 100 Unit Holders
or 1/2 in number of the Units Holders if the Fund has less than 100 Unit Holders, whether present in person or
by proxy. However where the meeting is convened for the purpose of removing the Manager and/or the
Trustee the quorum shall be 100 Unit Holders (or half that number if total Unit Holders are less than 100)
holding in aggregate at least 50% of the Units in circulation at the time of the meeting. If the Fund has 5 or less
Unit Holders, the quorum required for a meeting of the Unit Holders of the Fund shall be 2 Unit Holders,
whether present in person or by proxy and if the meeting is for the purpose of removing the Manager and/or
Trustee the Unit Holders forming the quorum must hold in aggregate at least 50% of the Units in circulation at
the time of the meeting.
Unless otherwise prescribed by law, a Unit Holders' meeting summoned pursuant to the Deeds shall be held
not later than 2 months after the notice was given, at the time and place stipulated in the notice and
advertisement.
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14 Variations Granted by the SC
Variation to the Guidelines on Unit Trust Fund
• Exemptions from the Guidelines for AMBUTF, AMBBTF, AMBITF, AMBILTF, AMBETF, AMBVTF,
AMBDTF, AMBEBTF, AMBSCTF, AMBLTF Today, AMBLTF 2014, PNB SIF, AMBDY, AMBDI and
AMBDA
(i)
Shareholders, Directors and Key Personnel
Clause 4.05 (9) (Guidelines 2003)
Clause 3.07 (Guidelines 2008)
“A director of a management company should not hold office as director of more than one
management company at any one time. In addition, a director of the management company
should not hold office as member of the investment committee of funds managed and
administered by another management company.”
Exemption from this Clause was extended to allow all of the directors of AMB to remain as
directors and member of the investment committee of funds managed and administered by
another management companies.”
(ii)
Members of investment committee
Clause 6.02 (8) (Guidelines 2003)
Clause 6.04 (Guidelines 2008)
“A member of the investment committee should not hold office as:
(a) member of an investment committee of funds managed and administered by another
management company;
(b) director of another management company;
(c) Shariah advisor for the same fund;
(d) member of the panel of advisors for the same fund; and
(e) an officer of the delegate that carry on the fund management function for the fund.”
An exemption from this Clause is given to Tun Ahmad Sarji bin Abdul Hamid, Tan Sri Dato’ Hamad
Kama Piah bin Che Othman and Tan Sri Dato’ Md. Desa bin Pachi, to allow them to be members of
the Investment Committees of all Funds. All of them save for Tan Sri Dato’ Dr. Wan Mohd. Zahid
bin Mohd. Noordin are also members of investment committees of other funds managed and
administered by another management company.
• Exemption from the Guidelines for AMBILTF only
Schedule C, Appendix 1, Paragraph 2.03 (3) (Guidelines 2003)
Schedule A, Paragraph 18 (Guidelines 2008)
The Fund has been granted a variation to Schedule C, Appendix 1, paragraph 2.0 (3) of the
Guidelines on Unit Trust Fund and is allowed to hold securities of, and the securities relating to, any
group of companies to a maximum of 30% of the NAV of the Fund ( the normal restriction is 20% of
the Fund's NAV).
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• Exemption from the Guidelines for AMBDA
Clause 8.01(5) (Guideline 2003)
[Revised Clause: Clause 9.09](Guideline 2008)
“Clause 8.01(5) of the Guidelines states that the annual management fee should be accrued
daily and should be calculated based on the NAV of the Fund. The number of days in a year
should be used in calculating the accrued fees. AMBDA had obtained an exemption from ths
requirement as the management has decided to allow the Fund to remunerate the Manager
under a profit sharing scheme with the Fund in the ration 15:85 based on the Net Investment
Income of the Fund after deduction of Trustee Fee and other operating expenses, instead of
charging an Annual Management Fee based on the NAV of the Fund as per Clause 8.01 (5) of
the Guidelines.”
• Exemption from the Guidelines (Guidelines 2008)for PNB SIF
(i)
Delegation of function
Clause 5.09
“An officer of the delegate (whether foreign or otherwise) should not hold office as member
of:
(a) the investment committee of any fund for which the fund manager is appointed to
manage;
(b) the Shariah advisor of any fund for which the delegate is appoitned to manage; and
(c) the panel of advisors of any fund for which the delegate is appointed to manage.”
Tan Sri Dato’ Hamad Kama Piah bin Che Othman, is the Director, President and Group Chief
Executive of PNB, the Investment Manager. He is thus deemed an officer of PNB. An
exemption was obtained to allow him to become investment committee member of AMB
Family of Funds.
(ii)
Issuance of new Units
Clause 10.06
“A trustee should create or cancel units immediately on receipt of, and in accordance with, the
instructions given by the management company and only for cash.”
PNB has implemented a Unit swap arrangement with PNB SIF whereby the 623,800,000 PNB
REIT units held by PNB were exchanged for 623,800,000 Units of PNB SIF. An exemption from
this clause was obtained to facilitate the Unit swap arrangement.
(iii)
Investment spread limit
Schedule A, Clause (10)
The value of a fund’s investments in units/shares of any collective investment scheme must
not exceed 20% of the fund’s NAV”
An exemption from this clause was obtained from the SC in order to allow the Fund to invest
up to 50% of PNB SIF’s NAV in PNB REIT.
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(iv)
Investment concentration limit
Schedule A, Clause (24)
“A fund’s investments in collective investment schemes must not exceed 25% of the
units/shares in any one collective investment scheme.”
An exemption from this clause was obtained from the SC in order to allow PNB SIF to invest in
all of the units issued by PNB REIT.
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15 Related Party Transactions/Conflict of Interest
Existing and Potential Related Party Transactions
(i)
(ii)
(iii)
(iv)
PNB has been appointed as the External Investment Manager of PNB SIF. As AMB is a wholly owned
subsidiary of ASNB and PNB holds 100% equity interest in ASNB, AMB is effectively a wholly-owned
subsidiary of PNB. In view of the above, the appointment of PNB as the External Investment Manager
is deemed a related party transaction.
PHNB, the management company of PNB REIT is also related to AMB by virtue of PNB holding 69.99%
equity interest in PHNB.
PNB SIF acquired 623,800,000 PNB REIT units from PNB and issued 623,800,000 new PNB SIF Units to
PNB in consideration thereof.
In addition, PNB SIF acquired 20,200,000 PNB REIT units for cash.
Conflict of Interest
AMB and its holding company, ASNB are both unit trust management companies managing unit trust funds.
The investment committee members for all the funds managed by AMB comprises the same individuals. In
addition to the above, Tun Ahmad Sarji bin Abdul Hamid is also an investment committee member for all the
funds managed by ASNB except for Amanah Saham Wawasan 2020. Tan Sri Dato’ Hamad Kama Piah bin Che
Othman is also an investment committee member for all the funds managed by ASNB. Tan Sri Dato’ Md. Desa
bin Pachi is an investment committee member for 5 funds managed by ASNB, namely Amanah Saham
Nasional, Amanah Saham Nasional 2, Amanah Saham Nasional 3- Imbang, Amanah Saham Gemilang and
Amanah Saham 1Malaysia. Previously, the appointment of the investment committee members for all the
other funds managed by ASNB and AMB had been approved by the SC.
In addition, PNB the holding company of AMB and ASNB has been appointed as the External Investment
Manager of PNB SIF and all the funds managed by ASNB.
Policies on Dealing with Conflict of Interest Situations
The Manager has in place policies and procedures to deal with any conflict of interest situations. In making an
investment transaction for the Fund, the Investment Manager will not make improper use of its position in
managing the Fund to gain, directly or indirectly, any advantage or to cause detriment to the interests of Unit
Holders.
As at LPD, to the best of the Manager’s knowledge, there has been no occurrence of conflict of interest
involving the Manager. Where a conflict or potential conflict of interest is identified, this must be evaluated by
the Compliance Department and disclosed to the Chief Executive Officer (“CEO”) of the Manager for the next
course of action. Conflict of interest situations involving the CEO will be disclosed to the Board of Directors of
the Manager for a decision on the next course of action. Directors or staff which are in advisory positions such
as portfolio managers or staff who have access to information on transactions are not allowed to engage in
dealings on their own account. Investment Committee members who hold substantial shareholdings or
directorships in public companies shall refrain from any decision making if the Fund invest in the particular
share or stocks of such companies.
Details of AMB’s Directors’ Direct and Indirect Interest in Other Corporations Carrying on a Similar
Business
As at the LPD, AMB’s Directors’ do not have any direct or indirect interest in other corporations carrying on a
similar business save for Tun Ahmad Sarji bin Abdul Hamid and Tan Sri Hamad Kama Piah bin Che Othman who
each hold 1 subscriber share in PHNB and ASNB respectively but have no beneficial interest in the same.
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Details of AMB’s Substantial Shareholders’ Direct and Indirect Interest in Other Corporations
Carrying on a Similar Business
As at the LPD, ASNB, the holding company of AMB does not have any direct or indirect interest in other
corporations carrying on a similar business.
Declaration of Conflict of interest of Experts
The Manager is not aware of any existing or potential conflicts of interest involving the Solicitors save and
except the Messrs Zainal Abidin & Co are also panel solicitors for PNB and ASNB.
The Manager is not aware of any existing or potential conflicts of interest involving the tax advisers.
Declaration of Conflict of Interest
PNB and funds managed by PNB have collectively over 50.00% shareholdings in Maybank. Maybank has
extended facilities to AMB and has also been appointed as the Distributor, both of which are in the ordinary
course of business. In addition, AMB has agreed-in-principle to appoint Etiqa Takaful Berhad, effectively a 70%
subsidiary of Maybank, to provide insurance coverage on group personal accident takaful for Unit Holders.
Mayban Investment Berhad (MIB), formerly known as Aseambankers, which is a wholly owned subsidiary of
Maybank, had on August 14, 2008 disclosed to the Manager that MIB has also agreed to provide consultancy
services to DBMB. MIB had declared the consultancy services to be in the ordinary course of business and has
entered into an agreement with DBMB dated July 2, 2008 under which MIB is entitled to a fee from DBMB for
consultancy services for referral of clients including PNB SIF.
Related-Party Transactions/Conflict of Interest in Relation To Trustee
As Trustee for the Fund, there may be related party transaction involving or in connection with the Fund in the
following events:1) Where the Fund invests in instruments offered by the related party of the Trustee (e.g placement of
monies, structured products, etc);
2) Where the Fund is being distributed by the related party of the Trustee as Institutional Unit Trust
Adviser (IUTA);
3) Where the assets of the Fund are being custodised by the related party of the Trustee both as subcustodian and/or global custodian of the Fund (Trustee’s delegate); and
4) Where the Fund obtains financing as permitted under the Securities Commission’s Guidelines on Unit
Trust, from the related party of the Trustee.
The Trustee has in place policies and procedures to deal with conflict of interest, if any. The Trustee will not
make improper use of its position as the owner of the fund's assets to gain, directly or indirectly, any
advantage or cause detriment to the interests of Unit Holders. Any related party transaction is to be made on
terms which are best available to the Fund and which are not less favourable to the Fund than an arms-length
transaction between independent parties.
Subject to any local regulations, the Trustee and/or its related group of companies may deal with each other,
the Fund or any Unit Holder or enter into any contract or transaction with each other, the Fund or any Unit
Holder or retain for its own benefit any profits or benefits derived from any such contract or transaction or act
in the same or similar capacity in relation to any other scheme.
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16 Tax Advisor’s Letter
TAXATION ADVISOR’S LETTER ON
TAXATION OF THE TRUSTS AND UNIT HOLDERS
(Prepared for inclusion in this Prospectus)
12 August 2010
PricewaterhouseCoopers Taxation Services Sdn Bhd
Level 10, 1 Sentral
Jalan Travers
Kuala Lumpur Sentral
P.O.Box 10192
50706 Kuala Lumpur
The Board of Directors
AMB Mutual Berhad
34th Floor, Menara PNB
201-A, Jalan Tun Razak
50400 Kuala Lumpur
AMB UNIT TRUST FUND
AMB BALANCED TRUST FUND
AMB INCOME TRUST FUND
TAXATION OF THE TRUSTS OFFERED UNDER THE MASTER PROSPECTUS AND UNITHOLDERS
Dear Sirs,
This letter has been prepared for inclusion in the Master Prospectus to be dated 17 September 2010 to 16
September 2011 in connection with the offer of units in the abovementioned trust funds (“the Trust”).
The taxation of income for both the Trusts and the Unitholders are subject to the provisions of the Malaysian
Income Tax Act 1967 (“the Act”). The applicable provisions are contained in Section 61 of the Act, which deals
specifically with the taxation of Trust bodies in Malaysia.
TAXATION OF THE TRUSTS
The Trusts will be regarded as resident for Malaysian tax purposes since the Trustee of the Trusts are resident
in Malaysia.
The income of the Trusts consisting of dividends, interest (other than interest which is exempt from tax) and
other investment income derived from or accruing in Malaysia, after deducting tax allowable expenses, is
liable to Malaysian income tax at the rate of 25 per cent.
Gains on disposal of investments by the Trusts will not be subject to income tax.
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Tax Credit
Dividends received by the Trusts would have suffered tax deduction at source at 25 per cent, unless specific
exemptions apply e.g. pioneer dividends. No additional tax will be payable by the Trusts on the dividends.
However, such tax or part thereof will be refundable to the Trusts if the total tax so deducted at source
exceeds the tax liability of the Trusts.
With effect from 1 January 2008, Malaysia introduced the single tier system where dividends paid by
companies would not be taxable in the hands of the recipient. Dividends received from companies that are
under the single tier system would be exempted from tax and the expenses incurred on such dividends would
be disregarded. There will no longer be any tax refunds for single tier dividends received. However, during the
transitional period from 1 January 2008 to 31 December 2013, companies may still elect to maintain the
imputation system where dividends paid are taxed at source and tax credits available to recipients.
Exempt Income
The Trusts may receive Malaysian dividends which are tax exempt. The exempt dividends may be received
from investments in companies which had previously enjoyed or are currently enjoying the various tax
incentives provided under the law. The Trusts will not be taxable on such exempt income.
With effect from 1 January 2008, dividends received from companies under the single-tier system would also
be exempted.
Interest income or discount income derived from the following investments are exempt from tax:
(a)
(b)
(c)
Securities or bonds issued or guaranteed by the Government;
1
Debentures , other than convertible loan stocks approved by the Securities Commission; and
Bon Simpanan Malaysia issued by Bank Negara Malaysia.
Interest income derived from the following investments are exempt from tax:
(a)
(a)
Interest paid or credited by any bank or financial institution licensed under the Banking and Financial
Institutions Act 1989 or the Islamic Banking Act 1983; and
Bonds, other than convertible loan stocks, paid or credited by any company listed in Malaysia
Exchange of Securities Dealing and Automated Quotation Berhad.
The income exempted from tax at the Trust’s level will also be exempted from tax upon distribution to the
Unitholders.
Tax Deductible Expenses
Expenses wholly and exclusively incurred in the production of gross income are allowable as deductions under
Section 33(1) of the Act. In addition, Section 63B of the Act provides for tax deduction in respect of managers’
remuneration, expenses on maintenance of the register of Unitholders, share registration expenses,
secretarial, audit and accounting fees, telephone charges, printing and stationery costs and postages based on
a formula subject to a minimum of 10 per cent and a maximum of 25 per cent of the expenses.
Real Property Gains Tax
With effect from 1 January 2010, any gains on disposal of real properties (“chargeable asset”) or shares in real
property companies (“chargeable asset”) would be subject to real property gains tax (“RPGT”) at 5 per cent if
the disposal is made within 5 years from the date of the acquisition of such chargeable asset. However, any
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disposal of chargeable asset after 5 years from the date of the acquisition of such chargeable asset is exempt
2
from RPGT . A real property company is a controlled company which owns or acquires real property or shares
in real property companies with a market value of not less than 75 per cent of its total tangible assets. A
controlled company is a company which does not have more than 50 members and is controlled by not more
than 5 persons.
TAXATION OF UNITHOLDERS
Unitholders will be taxed on an amount equivalent to their share of the total taxable income of the Trusts to
the extent of the distributions received from the Trusts. The income distribution from the Trusts will carry a
tax credit in respect of the tax paid by the Trusts. Unitholders will be entitled to utilise the tax credit against
the tax payable on the income distribution received by them. No additional withholding tax will be imposed on
the income distribution from the Trusts.
3
Corporate Unitholders, resident and non-resident, will generally be liable to income tax at 25 per cent on
distribution of income received from the Trusts. The tax credits attributable to the distribution of income can
be utilised against the tax liabilities of these Unitholders.
Individuals and other non-corporate Unitholders who are tax resident in Malaysia will be subject to income tax
at graduated rates ranging from 1 per cent to 26 per cent. Individuals and other non-corporate Unitholders
who are not resident in Malaysia will be subject to income tax at 26 per cent. The tax credits attributable to
the distribution of income will be utilised against the tax liabilities of these Unitholders.
Non-resident Unitholders may also be subject to tax in their respective jurisdictions and depending on the
provisions of the relevant tax legislation and any double tax treaty with Malaysia, the Malaysian tax suffered
may be creditable in the foreign tax jurisdictions.
The distribution of exempt income and gains arising from the disposal of investments by the Trusts will be
exempted from tax in the hands of the Unitholders.
Any gains realised by Unitholders (other than those in the business of dealing in securities, insurance
companies or financial institutions) on the sale or redemption of the units are treated as capital gains and will
not be subject to income tax.
Unitholders electing to receive their income distribution by way of investment in the form of new units will be
regarded as having purchased the new units out of their income distribution after tax.
Unit splits issued by the Trusts are not taxable in the hands of Unitholders.
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We hereby confirm that the statements made in this report correctly reflect our understanding of the tax
position under current Malaysian tax legislation. Our comments above are general in nature and covers
taxation in the context of Malaysian tax legislation only and does not cover foreign tax legislation. The
comments do not represent specific tax advice to any investors and we recommend that investors obtain
independent advice on the tax issues associated with their investments in the Trusts.
Yours faithfully,
for and on behalf of
PRICEWATERHOUSECOOPERS TAXATION SERVICES SDN BHD
Jennifer Chang
Senior Executive Director
PricewaterhouseCoopers Taxation Services Sdn Bhd have given their written consent to the inclusion of their
report as Taxation Adviser in the form and context in which it appears in this Master Prospectus and have not
withdrawn such consent prior to the delivery of a copy of this Master Prospectus for approval.
____________________________________________
1
In practice, debentures have been interpreted to include Islamic securities as well. Under the Finance Act 2010, the tax
exemption is given to Islamic securities approved by Securities Commission.
2
Pursuant to the gazette order, P.U. (A) 486, Real Property Gains Tax (Exemption) (No. 2) Order 2009.
3
Resident companies with paid up capital in respect of ordinary shares of RM2.5 million and below will pay tax at 20 per
cent for the first RM500,000 of chargeable income with the balance taxed at 25 per cent.
However, pursuant to Finance Act 2009 – Act 693, with effect from YA 2009, the above shall not apply if more than –
(a)
50 per cent of the paid up capital in respect of ordinary shares of the company is directly or indirectly owned by a
related company;
(b)
50 per cent of the paid up capital in respect of ordinary shares of the related company is directly or indirectly
owned by the first mentioned company;
(c)
50 per cent of the paid up capital in respect of ordinary shares of the first mentioned company and the related
company is directly or indirectly owned by another company.
“Related company” means a company which has a paid up capital in respect of ordinary shares of more than
RM2.5 million at the beginning of the basis period for a year of assessment.
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TAXATION ADVISOR’S LETTER
ON TAXATION OF THE TRUSTS AND UNITHOLDERS
(Prepared for inclusion in this Prospectus)
12 August 2010
PricewaterhouseCoopers Taxation Services Sdn Bhd
Level 10, 1 Sentral
Jalan Travers
Kuala Lumpur Sentral
P.O.Box 10192
50706 Kuala Lumpur
The Board of Directors
AMB Mutual Berhad
34th Floor, Menara PNB
201-A, Jalan Tun Razak
50400 Kuala Lumpur
AMB DANA YAKIN
TAXATION OF THE TRUSTS OFFERED UNDER THE MASTER PROSPECTUS AND UNITHOLDERS
Dear Sirs,
This letter has been prepared for inclusion in the Master Prospectus to be dated 17 September 2010 to 16
September 2011 in connection with the offer of unit in the abovementioned trust fund (“the Trust”).
The taxation of income for both the Trust and the Unitholders are subject to the provisions of the Malaysian
Income Tax Act 1967 (“the Act”). The applicable provisions are contained in Section 61 of the Act, which deals
specifically with the taxation of Trust bodies in Malaysia.
TAXATION OF THE TRUST
The Trust will be regarded as resident for Malaysian tax purposes since the Trustee of the Trust is resident in
Malaysia.
1
1
The income of the Trust consisting of dividends, interest or profit (other than interest and profit which is
exempt from tax) and other investment income derived from or accruing in Malaysia, after deducting tax
allowable expenses, is liable to Malaysian income tax at the rate of 25 per cent.
Gains on disposal of investments by the Trust will not be subject to income tax.
Tax Credit
Dividends received by the Trust would have suffered tax deduction at source at 25 per cent, unless specific
exemptions apply e.g. pioneer dividends. No additional tax will be payable by the Trust on the dividends.
However, such tax or part thereof will be refundable to the Trust if the total tax so deducted at source exceeds
the tax liability of the Trust.
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With effect from 1 January 2008, Malaysia introduced the single tier system where dividends paid by
companies would not be taxable in the hands of the recipient. Dividends received from companies that are
under the single tier system would be exempted from tax and the expenses incurred on such dividends would
be disregarded. There will no longer be any tax refunds for single tier dividends received. However, during the
transitional period from 1 January 2008 to 31 December 2013, companies may still elect to maintain the
imputation system where dividends paid are taxed at source and tax credits available to recipients.
Exempt Income
The Trust may receive Malaysian dividends which are tax exempt. The exempt dividends may be received from
investments in companies which had previously enjoyed or are currently enjoying the various tax incentives
provided under the law. The Trust will not be taxable on such exempt income.
With effect from 1 January 2008, dividends received from companies under the single-tier system would also
be exempted.
1
Interest income or profit or discount income derived from the following investments are exempt from tax:
(d)
(e)
(f)
Securities or bonds issued or guaranteed by the Government;
2
Debentures , other than convertible loan stocks approved by the Securities Commission; and
Bon Simpanan Malaysia issued by Bank Negara Malaysia.
Interest income or profit1 derived from the following investments are exempt from tax:
(b)
(c)
Interest or profit1 paid or credited by any bank or financial institution licensed under the Banking and
Financial Institutions Act 1989 or the Islamic Banking Act 1983; and
Bonds, other than convertible loan stocks, paid or credited by any company listed in Malaysia
Exchange of Securities Dealing and Automated Quotation Berhad.
The income exempted from tax at the Trust’s level will also be exempted from tax upon distribution to the
Unitholders.
Tax Deductible Expenses
Expenses wholly and exclusively incurred in the production of gross income are allowable as deductions under
Section 33(1) of the Act. In addition, Section 63B of the Act provides for tax deduction in respect of managers’
remuneration, expenses on maintenance of the register of Unitholders, share registration expenses,
secretarial, audit and accounting fees, telephone charges, printing and stationery costs and postages based on
a formula subject to a minimum of 10 per cent and a maximum of 25 per cent of the expenses.
Real Property Gains Tax
With effect from 1 January 2010, any gains on disposal of real properties (“chargeable asset”) or shares in real
property companies (“chargeable asset”) would be subject to real property gains tax (“RPGT”) at 5 per cent if
the disposal is made within 5 years from the date of the acquisition of such chargeable asset. However, any
disposal of chargeable asset after 5 years from the date of the acquisition of such chargeable asset is exempt
from RPGT3 . A real property company is a controlled company which owns or acquires real property or shares
in real property companies with a market value of not less than 75 per cent of its total tangible assets. A
controlled company is a company which does not have more than 50 members and is controlled by not more
than 5 persons.
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TAXATION OF UNITHOLDERS
Unitholders will be taxed on an amount equivalent to their share of the total taxable income of the Trust to
the extent of the distributions received from the Trust. The income distribution from the Trust will carry a tax
credit in respect of the tax paid by the Trust. Unitholders will be entitled to utilise the tax credit against the tax
payable on the income distribution received by them. No additional withholding tax will be imposed on the
income distribution from the Trust.
Corporate Unitholders, resident4 and non-resident, will generally be liable to income tax at 25 per cent on
distribution of income received from the Trust. The tax credits attributable to the distribution of income can
be utilised against the tax liabilities of these Unitholders.
Individuals and other non-corporate Unitholders who are tax resident in Malaysia will be subject to income tax
at graduated rates ranging from 1 per cent to 26 per cent. Individuals and other non-corporate Unitholders
who are not resident in Malaysia will be subject to income tax at 26 per cent. The tax credits attributable to
the distribution of income will be utilised against the tax liabilities of these Unitholders.
Non-resident Unitholders may also be subject to tax in their respective jurisdictions and depending on the
provisions of the relevant tax legislation and any double tax treaty with Malaysia, the Malaysian tax suffered
may be creditable in the foreign tax jurisdictions.
The distribution of exempt income and gains arising from the disposal of investments by the Trust will be
exempted from tax in the hands of the Unitholders.
Any gains realised by Unitholders (other than those in the business of dealing in securities, insurance
companies or financial institutions) on the sale or redemption of the units are treated as capital gains and will
not be subject to income tax.
Unitholders electing to receive their income distribution by way of investment in the form of new units will be
regarded as having purchased the new units out of their income distribution after tax.
Unit splits issued by the Trust are not taxable in the hands of Unitholders.
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We hereby confirm that the statements made in this report correctly reflect our understanding of the tax
position under current Malaysian tax legislation. Our comments above are general in nature and covers
taxation in the context of Malaysian tax legislation only and does not cover foreign tax legislation. The
comments do not represent specific tax advice to any investors and we recommend that investors obtain
independent advice on the tax issues associated with their investments in the Trust.
Yours faithfully,
for and on behalf of
PRICEWATERHOUSECOOPERS TAXATION SERVICES SDN BHD
Jennifer Chang
Senior Executive Director
PricewaterhouseCoopers Taxation Services Sdn Bhd have given their written consent to the inclusion of their
report as Taxation Adviser in the form and context in which it appears in this Master Prospectus and have not
withdrawn such consent prior to the delivery of a copy of this Master Prospectus for approval.
____________________________________________
1 Under section 2(7) of the Income Tax Act 1967, any reference to interest shall apply, mutatis mutandis, to gains or
profits received and expenses incurred, in lieu of interest, in transactions conducted in accordance with the
principles of Syariah.
The effect of this is that any gains or profits received and expenses incurred, in lieu of interest, in transactions
conducted in accordance with the principles of Syariah, will be accorded the same tax treatment as if they were
interest.
2 In practice, debentures have been interpreted to include Islamic securities as well. Under the Finance Act 2010, the tax
exemption is given to Islamic securities approved by Securities Commission.
3
Pursuant to the gazette order, P.U. (A) 486, Real Property Gains Tax (Exemption) (No. 2) Order 2009.
4
Resident companies with paid up capital in respect of ordinary shares of RM2.5 million and below will pay tax at 20 per
cent for the first RM500,000 of chargeable income with the balance taxed at 25 per cent.
However, pursuant to Finance Act 2009 – Act 693, with effect from YA 2009, the above shall not apply if more than –
(d)
50 per cent of the paid up capital in respect of ordinary shares of the company is directly or indirectly owned by a
related company;
(e)
50 per cent of the paid up capital in respect of ordinary shares of the related company is directly or indirectly
owned by the first mentioned company;
(f)
50 per cent of the paid up capital in respect of ordinary shares of the first mentioned company and the related
company is directly or indirectly owned by another company.
“Related company” means a company which has a paid up capital in respect of ordinary shares of more than RM2.5 million
at the beginning of the basis period for a year of assessment.
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TAXATION ADVISOR’S LETTER
ON TAXATION OF THE TRUSTS AND UNITHOLDERS
(Prepared for inclusion in this Prospectus)
11 August 2010
Ernst & Young Tax Consultants Sdn Bhd
Level 23A, Menara Milenium
Pusat Bandar Damansara
50490 Kuala Lumpur
The Board of Directors
Amanah Mutual Berhad
4th Floor, Balai PNB
201-A, Jalan Tun Razak
50400 Kuala Lumpur
Dear Sirs
Taxation of the unit trust and unit holders
This letter has been prepared for inclusion in this Prospectus to be dated 17 September 2010 in connection
with the offer of units in the unit trusts listed below (hereinafter referred to as “the Funds”).
1.
2.
AMB Dana Arif; and
AMB Dana Ikhlas
The purpose of this letter is to provide prospective unit holders with an overview of the impact of taxation on
the Funds and the unit holders.
Taxation of the fund
The taxation of the Funds are subject to the provisions of the Malaysian Income Tax Act, 1967 (“MITA”),
particularly Sections 61 and 63B.
Under Section 2(7) of the MITA, any reference to interest shall apply, mutatis mutandis, to gains or profits
received and expenses incurred, in lieu of interest, in transactions conducted in accordance with the principles
of Syariah.
The effect of this is that any gains or profits received (hereinafter referred to as “profits”) and expenses
incurred, in lieu of interest, in transactions conducted in accordance with the principles of Syariah, will be
accorded the same tax treatment as if they were interest.
Subject to certain exemptions, the income of the Funds comprising dividends, profits and other investment
income derived from or accruing in Malaysia after deducting tax allowable expenses, is subject to Malaysian
income tax, which is currently imposed at the rate of 25%.
Tax allowable expenses would comprise expenses falling under Section 33(1) and Section 63B of the MITA.
Section 33(1) permits a deduction for expenses that are wholly and exclusively incurred in the production of
gross income. In addition, Section 63B allows unit trusts a deduction for a portion of other expenses (referred
to as ‘permitted expenses’) not directly related to the production of income, as explained below.
“Permitted expenses” refer to the following expenses incurred by the Funds which are not deductible under
Section 33(1) of the MITA:
•
•
the manager's remuneration,
maintenance of the register of unit holders,
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•
share registration expenses,
secretarial, audit and accounting fees, telephone charges, printing and stationery costs and postage.
These expenses are given a partial deduction under Section 63B of the MITA, based on the following formula:
A x B_
4C
where
A
is the total of the permitted expenses incurred for that basis period;
B
is gross income consisting of dividend, interest and rent chargeable to tax for that basis
period; and
C
is the aggregate of the gross income consisting of dividend (whether exempt or not), interest
and rent, and gains made from the realisation of investments (whether chargeable to tax or
not) for that basis period,
provided that the amount of deduction to be made shall not be less than 10% of the total permitted expenses
incurred for that basis period.
Exempt income
The following income of the Funds is exempt from income tax:
•
Dividends
Tax exempt dividends received from investments in companies which had previously enjoyed or are
currently enjoying certain tax incentives provided under the relevant legislation.
Paragraph 12B, Schedule 6 of MITA states that exempt dividend includes any dividend paid, credited or
distributed to any person where the company paying such dividend is not entitled to deduct tax under
Section 108 of MITA.
•
1
2
3
Interest (Profits)
(i)
interest from securities or bonds issued or guaranteed by the Government of Malaysia;
(ii)
interest from debentures or Islamic securities , (other than convertible loan stock) approved by
the Securities Commission;
(iii)
interest from Bon Simpanan Malaysia issued by Bank Negara Malaysia;
(iv)
interest derived from Malaysia and paid or credited by banks or financial institutions licensed
under the Banking and Financial Institutions Act 1989 or the Islamic Banking Act 1983;
(v)
interest from Islamic securities originating from Malaysia, other than convertible loan stock
issued in any currency in Malaysia and approved by Securities Commission or Labuan Offshore
21
Financial Services Authority (LOFSA).
(vi)
interest received from bonds or securities issued by Pengurusan Danaharta Nasional Berhad;
and
(vii)
interest derived from bonds (other than convertible loan stock) paid or credited by any
company listed on the Malaysian Exchange of Securities Dealing and Automated Quotation
Berhad (MESDAQ)32.
1
The insertion of ‘Islamic securities’ was introduced in Finance Act 2010 and is effective from Year of Assessment 2010.
The insertion of ‘LOFSA’ was introduced in Finance Act 2010 and is effective from Year of Assessment 2010.
MESDAQ was replaced by FTSE Bursa Malaysia ACE with effect from 3 August 2009, therefore any interest derived from
bonds (other than convertible loan stock) paid or credited by any company listed on the MESDAQ should still qualify for
an exemption up to 2 August 2009. However, from 3 August 2009 and up to the date of this letter, there is no new gazette
order issued to exempt interest derived from bonds paid or credited by a company listed in the new FTSE Bursa Malaysia
ACE.
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•
Discount
Tax exemption is given on discount paid or credited to any unit trust in respect of investments as
specified in items (i), (ii) and (iii) above.
Foreign income
Dividends, profits and other income derived from sources outside Malaysia and received in Malaysia by a
resident unit trust is exempt from Malaysian income tax. However, such income may be subject to tax in the
country from which it is derived.
Gains from the realisation of investments
Pursuant to Section 61(1) (b) of the MITA, gains from the realisation of investments will not be treated as
income of the Fund and hence, are not subject to income tax. Such gains may be subject to real property
gains tax ("RPGT") under the Real Property Gains Tax Act, 1976 (“RPGT Act”), if the gains are derived from the
sale of chargeable assets, as defined in the RPGT Act. Any chargeable gain on the disposal of chargeable
assets from 1 January 2010 onwards would be subject to RPGT at the applicable tax rate depending on the
holding period. However, under the Real Property Gains Tax (Exemption) (No.2)Order 2009, Funds can enjoy
a full exemption from RPGT on disposals of chargeable assets held more than 5 years and an effective tax rate
of 5% for all disposals of chargeable assets which are held for 5 years or less.
Tax credit
Tax deducted at source from Malaysian dividends received by the Funds will be available for set-off either
wholly or partly against the tax liability of the Funds. Should the tax deducted at source exceed the tax liability
of the Funds, the excess is refundable to the Funds.43
Taxation of unit holders
For Malaysian income tax purposes, unit holders will be taxed on their share of the distributions received from
the Funds.
The income of unit holders from their investment in the Funds broadly falls under the following categories:
1.
taxable distributions; and
2.
non-taxable and exempt distributions.
In addition, unit holders may also realise a gain from the sale of units.
The tax implications of each of the above categories are explained below:
1.
Taxable distributions
Distributions received from the Funds will have to be grossed up to take into account the underlying
tax paid by the Funds and the unit holder will be taxed on the grossed up amount.
Such distributions carry a tax credit, which will be available for set-off against any Malaysian income
tax payable by the unit holder. Should the tax deducted at source exceed the tax liability of the unit
holder, the excess is refundable to the unit holder.
Distributions received by a non-resident unit holder from income which has been taxed at source at
25%, will not be subject to any further income tax in Malaysia.
4
Pursuant to Section 51 of the Finance Act 2007, a person is not entitled for a set-off if the shares are held for less than 90
days or the dividend is not derived from ordinary shares. This prohibition is not applicable for shares in a company listed
on the Bursa Malaysia. Further, Section 50 of Finance Act 2009 indicates that a person is not entitled to a set-off if the
dividend paid to that person is not in cash.
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Please refer to the paragraph below for the income tax rates applicable to the grossed up
distributions.
2.
Non-taxable and exempt distributions
Tax exempt distributions made out of gains from the realisation of investments and other exempt
income earned by the Funds will not be subject to Malaysian tax in the hands of the unit holders.
Rates of tax
The Malaysian income tax chargeable on the unit holders depends on their tax residence status and whether
they are individuals, corporations or trust bodies. The income tax rates charged are as follows:
Unit holders
Malaysian income tax rates
Malaysian tax resident:
• Individual and non-corporate unit holders (such as
co-operatives, associations and societies)
• Progressive tax rates ranging from 0% to
26%54
• Trust bodies
• 25%
• Corporate unit holders
(i)
A company with paid up capital in respect
of ordinary shares of not more than RM2.5
million (at the beginning of the basis
period for the year of assessment)
• For every first RM500,000 of chargeable
65
income @ 20%
(ii)
Companies other than (i) above
• Chargeable income in excess of RM500,000
@ 25%
•
25%
Non-Malaysian tax resident (Note):
• Individual and non-corporate unit holders
• 26%76
• Corporate unit holders and trust bodies
• 25%
Note:
Non-resident unit holders may be subject to tax in their respective countries depending on the provisions of
the tax legislation in the respective countries and any existing double taxation arrangements with Malaysia.
5
6
7
This rate is effective from Year of Assessment 2010, as stated in the Finance Act 2010.
A company would not be eligible for the 20% tax rate on the first RM500,000 of chargeable income if:a) more than 50% of the paid up capital in respect of the ordinary shares of the company is directly or indirectly
owned by a related company which has a paid up capital in respect of ordinary shares of more than RM2.5 million
at the beginning of a basis period for a year of assessment;
b) the company owns directly or indirectly more than 50% of the paid up capital in respect of the ordinary shares of a
related company which has a paid up capital in respect of ordinary shares of more than RM2.5 million at the
beginning of a basis period for a year of assessment;
c) more than 50% of the paid up capital in respect of the ordinary shares of the company and a related company
which has a paid up capital in respect of ordinary shares of more than RM2.5 million at the beginning of a basis
period for a year of assessment is directly or indirectly owned by another company.
This rate is effective from Year of Assessment 2010, as stated in the Finance Act 2010.
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Gains from sale of units
Gains arising from the realisation of investments will not be subject to income tax in the hands of unit holders
unless they are insurance companies, financial institutions or traders/ dealers in securities.
Unit splits and reinvestment of distributions
Unit holders may also receive new units as a result of unit splits or may choose to reinvest their distributions.
The income tax implications of these are as follows:
• Unit splits – new units issued by the Funds pursuant to a unit split will not be subject to income tax in the
hands of the unit holders.
• Reinvestment of distributions – unit holders may choose to reinvest their income distribution in new units
by informing the Manager. In this event, the unit holder will be deemed to have received the distribution
and reinvested it with the Funds.
**********************************************
We hereby confirm that, as at the date of this letter, the statements made in this report correctly reflect our
understanding of the tax position under current Malaysian tax legislation and the related interpretation and
practice thereof, all of which are subject to change, possibly on a retrospective basis. We have not been
retained (unless specifically instructed hereafter), nor are we obligated to monitor or update the statements
for future conditions that may affect these statements.
The statements made in this letter are not intended to be a complete analysis of the tax consequences
relating to an investor in the Funds. As the particular circumstances of each investor may differ, we
recommend that investors obtain independent advice on the tax issues associated with an investment in the
Funds.
Yours faithfully
Ernst & Young Tax Consultants Sdn Bhd
Noor Rida Hamzah
Partner
Ernst & Young Tax Consultants Sdn. Bhd. has given its consent to the inclusion of the Taxation Adviser’s Letter
in the form and context in which it appears in this Prospectus and has not withdrawn such consent prior to the
delivery of a copy of this Prospectus for approval.
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Taxation adviser’s letter in respect of the taxation
Of the unit trust and the unit holders
(prepared for inclusion in this prospectus)
11 August 2010
Ernst & Young Tax Consultants Sdn Bhd
Level 23A, Menara Milenium
Pusat Bandar Damansara
50490 Kuala Lumpur
The Board of Directors
Amanah Mutual Berhad
4th Floor, Balai PNB
201-A, Jalan Tun Razak
50400 Kuala Lumpur
Dear Sirs,
Taxation of the unit trust and unit holders
This letter has been prepared for inclusion in this Prospectus to be dated 17 September 2010 in connection
with the offer of units in the unit trusts listed below (hereinafter referred to as “the Funds”).
1.
2.
3.
4.
5.
6.
7.
8.
AMB Index-Linked Trust Fund
AMB Ethical Trust Fund
AMB Value Trust Fund
AMB Enhanced Bond Trust Fund
AMB Smallcap Trust Fund
AMB Lifestyle Trust Fund Today
AMB Lifestyle Trust Fund 2014
AMB Dividend Trust Fund
The purpose of this letter is to provide prospective unit holders with an overview of the impact of taxation on
the Funds and the unit holders.
Taxation of the fund
The taxation of the Funds is subject to the provisions of the Malaysian Income Tax Act, 1967 (“MITA”),
particularly Sections 61 and 63B.
Subject to certain exemptions, the income of the Funds comprising dividends, interest and other investment
income derived from or accruing in Malaysia after deducting tax allowable expenses, is subject to Malaysian
income tax, which is currently imposed at the rate of 25%.
Tax allowable expenses would comprise expenses falling under Section 33(1) and Section 63B of the MITA.
Section 33(1) permits a deduction for expenses that are wholly and exclusively incurred in the production of
gross income. In addition, Section 63B allows unit trusts a deduction for a portion of other expenses (referred
to as ‘permitted expenses’) not directly related to the production of income, as explained below.
‘Permitted expenses’ refer to the following expenses incurred by the Funds which are not deductible under
Section 33(1) of the MITA:
•
•
•
•
the manager's remuneration,
maintenance of the register of unit holders,
share registration expenses,
secretarial, audit and accounting fees, telephone charges, printing and stationery costs and postage.
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These expenses are given a partial deduction under Section 63B of the MITA, based on the following formula:
A x B_
4C
where
A
is the total of the permitted expenses incurred for that basis period;
B
is gross income consisting of dividend, interest and rent chargeable to tax for that basis
period; and
C
is the aggregate of the gross income consisting of dividend (whether exempt or not), interest
and rent, and gains made from the realisation of investments (whether chargeable to tax or
not) for that basis period,
provided that the amount of deduction to be made shall not be less than 10% of the total permitted expenses
incurred for that basis period.
Exempt income
The following income of the Funds is exempt from income tax:
•
Dividends
Tax exempt dividends received from investments in companies which had previously enjoyed or are
currently enjoying certain tax incentives provided under the relevant legislation.
Paragraph 12B, Schedule 6 of MITA states that exempt dividend includes any dividend paid, credited or
distributed to any person where the company paying such dividend is not entitled to deduct tax under
Section 108 of MITA.
•
1
2
3
Interest
(i)
interest from securities or bonds issued or guaranteed by the Government of Malaysia;
(ii)
interest from debentures or Islamic securities , (other than convertible loan stock) approved by
the Securities Commission;
(iii)
interest from Bon Simpanan Malaysia issued by Bank Negara Malaysia;
(iv)
interest derived from Malaysia and paid or credited by banks or financial institutions licensed
under the Banking and Financial Institutions Act 1989 or the Islamic Banking Act 1983;
(v)
interest from Islamic securities originating from Malaysia, other than convertible loan stock
issued in any currency in Malaysia and approved by Securities Commission or Labuan Offshore
27
Financial Services Authority (LOFSA)
(vi)
interest received from bonds or securities issued by Pengurusan Danaharta Nasional Berhad; and
(vii)
interest derived from bonds (other than convertible loan stock) paid or credited by any company
listed on the Malaysian Exchange of Securities Dealing and Automated Quotation Berhad
(MESDAQ)3 .8
1
The insertion of ‘Islamic securities’ was introduced in Finance Act 2010 and is effective from Year of Assessment 2010.
The insertion of ‘LOFSA’ was introduced in Finance Act 2010 and is effective from Year of Assessment 2010.
MESDAQ was replaced by FTSE Bursa Malaysia ACE with effect from 3 August 2009, therefore any interest derived from
bonds (other than convertible loan stock) paid or credited by any company listed on the MESDAQ should still qualify for
an exemption up to 2 August 2009. However, from 3 August 2009 and up to the date of this letter, there is no new gazette
order issued to exempt interest derived from bonds paid or credited by a company listed in the new FTSE Bursa Malaysia
ACE.
AMB Client Services : 03-2034 0800
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•
Discount
Tax exemption is given on discount paid or credited to any unit trust in respect of investments as
specified in items (i), (ii) and (iii) above.
Foreign income
Dividends, profits and other income derived from sources outside Malaysia and received in Malaysia by a
resident unit trust is exempt from Malaysian income tax. However, such income may be subject to tax in the
country from which it is derived.
Gains from the realisation of investments
Pursuant to Section 61(1) (b) of the MITA, gains from the realisation of investments will not be treated as
income of the Funds and hence, are not subject to income tax. Such gains may be subject to real property
gains tax ("RPGT") under the Real Property Gains Tax Act, 1976 (“RPGT Act”), if the gains are derived from the
sale of chargeable assets, as defined in the RPGT Act. Any chargeable gain on the disposal of chargeable
assets from 1 January 2010 onwards would be subject to RPGT at the applicable tax rate depending on the
holding period. However, under the Real Property Gains Tax (Exemption) (No.2) Order 2009, Funds can enjoy
a full exemption from RPGT on disposals of chargeable assets held more than 5 years and an effective tax rate
of 5% for all disposals of chargeable assets which are held for 5 years or less].
Tax credit
Tax deducted at source from Malaysian dividends received by the Funds will be available for set-off either
wholly or partly against the tax liability of the Funds. Should the tax deducted at source exceed the tax liability
of the Funds, the excess is refundable to the Funds.4 9
Taxation of unit holders
For Malaysian income tax purposes, unit holders will be taxed on their share of the distributions received from
the Funds.
The income of unit holders from their investment in the Funds broadly falls under the following categories:
1.
taxable distributions; and
2.
non-taxable and exempt distributions.
In addition, unit holders may also realise a gain from the sale of units.
The tax implications of each of the above categories are explained below:
1.
Taxable distributions
Distributions received from the Funds will have to be grossed up to take into account the underlying
tax paid by the Funds and the unit holder will be taxed on the grossed up amount.
Such distributions carry a tax credit, which will be available for set-off against any Malaysian income
tax payable by the unit holder. Should the tax deducted at source exceed the tax liability of the unit
holder, the excess is refundable to the unit holder.
Distributions received by a non-resident unit holder from income which has been taxed at source at
25% will not be subject to any further income tax in Malaysia.
4
Pursuant to Section 51 of the Finance Act 2007, a person is not entitled for a set-off if the shares are held for less than 90
days or the dividend is not derived from ordinary shares. This prohibition is not applicable for shares in a company listed
on the Bursa Malaysia. Further, Section 50 of Finance Act 2009 indicates that a person is not entitled to a set-off if the
dividend paid to that person is not in cash.
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Master Prospectus 2010/2011
Please refer to the paragraph below for the income tax rates applicable to the grossed up distributions.
2.
Non-taxable and exempt distributions
Tax exempt distributions made out of gains from the realisation of investments and other exempt
income earned by the Funds will not be subject to Malaysian tax in the hands of the unit holders.
Rates of tax
The Malaysian income tax chargeable on the unit holders depends on their tax residence status and whether
they are individuals, corporations or trust bodies. The income tax rates charged are as follows:
Unit holders
Malaysian income tax rates
Malaysian tax resident:
• Individual and non-corporate unit holders (such as
co-operatives, associations and societies)
• Progressive tax rates ranging from 0% to
5 10
26%
• Trust bodies
• 25%
• Corporate unit holders
(iii)
(iv)
A company with paid up capital in respect
of ordinary shares of not more than RM2.5
million (at the beginning of the basis
period for the year of assessment)
Companies other than (i) above
• For every first RM500,000 of chargeable
6 11
income @ 20%
• Chargeable income in excess of RM500,000
@ 25%
•
25%
Non-Malaysian tax resident (Note):
• Individual and non-corporate unit holders
• 26% 7
• Corporate unit holders and trust bodies
• 25%
12
Note:
Non-resident unit holders may be subject to tax in their respective countries depending on the provisions of
the tax legislation in the respective countries and any existing double taxation arrangements with Malaysia.
Gains from sale of units
Gains arising from the realisation of investments will not be subject to income tax in the hands of unit holders
unless they are insurance companies, financial institutions or traders / dealers in securities.
5
6
7
This rate is effective from Year of Assessment 2010, as stated in the Finance Act 2010.
A company would not be eligible for the 20% tax rate on the first RM500,000 of chargeable income if:a) more than 50% of the paid up capital in respect of the ordinary shares of the company is directly or indirectly
owned by a related company which has a paid up capital in respect of ordinary shares of more than RM2.5 million
at the beginning of a basis period for a year of assessment;
b) the company owns directly or indirectly more than 50% of the paid up capital in respect of the ordinary shares of a
related company which has a paid up capital in respect of ordinary shares of more than RM2.5 million at the
beginning of a basis period for a year of assessment;
c) more than 50% of the paid up capital in respect of the ordinary shares of the company and a related company
which has a paid up capital in respect of ordinary shares of more than RM2.5 million at the beginning of a basis
period for a year of assessment is directly or indirectly owned by another company.
This rate is effective from Year of Assessment 2010, as stated in the Finance Act 2010.
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Master Prospectus 2010/2011
Unit splits and reinvestment of distributions
Unit holders may also receive new units as a result of unit splits or may choose to reinvest their distributions.
The income tax implications of these are as follows:
• Unit splits – new units issued by the Funds pursuant to a unit split will not be subject to income tax in the
hands of the unit holders.
• Reinvestment of distributions – unit holders may choose to reinvest their income distribution in new units
by informing the Manager. In this event, the unit holder will be deemed to have received the distribution
and reinvested it with the Funds.
**********************************************
We hereby confirm that, as at the date of this letter, the statements made in this report correctly reflect our
understanding of the tax position under current Malaysian tax legislation and the related interpretation and
practice thereof, all of which are subject to change, possibly on a retrospective basis. We have not been
retained (unless specifically instructed hereafter), nor are we obligated to monitor or update the statements
for future conditions that may affect these statements.
The statements made in this letter are not intended to be a complete analysis of the tax consequences
relating to an investor in the Funds. As the particular circumstances of each investor may differ, we
recommend that investors obtain independent advice on the tax issues associated with an investment in the
Funds.
Yours faithfully
Ernst & Young Tax Consultants Sdn Bhd
Noor Rida Hamzah
Partner
Ernst & Young Tax Consultants Sdn. Bhd. has given its consent to the inclusion of the Taxation Adviser’s Letter
in the form and context in which it appears in this Prospectus and has not withdrawn such consent prior to the
delivery of a copy of this Prospectus for approval.
AMB Client Services : 03-2034 0800
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Master Prospectus 2010/2011
Taxation adviser’s letter in respect of the taxation
Of the unit trust and the unit holders
(prepared for inclusion in this prospectus)
11 August 2010
Ernst & Young Tax Consultants Sdn Bhd
Level 23A, Menara Milenium
Pusat Bandar Damansara
50490 Kuala Lumpur
The Board of Directors
Amanah Mutual Berhad
4th Floor, Balai PNB
201-A, Jalan Tun Razak
50400 Kuala Lumpur
Dear Sirs,
Taxation of the unit trust and unit holders
This letter has been prepared for inclusion in this Prospectus to be dated 17 September 2010 in connection
with the offer of units in the unit trust known as PNB Structure Investment Fund (hereinafter referred to as
“the Fund”).
The purpose of this letter is to provide prospective unit holders with an overview of the impact of taxation on
the Fund and the unit holders.
Taxation of the Fund
The Fund has been granted income tax exemption pursuant to Section 127(3A) of the Malaysian Income Tax
Act, 1967 (“MITA”).
In addition, any distribution made by PNB Real Investment Trust Fund to the Fund is exempted from
withholding tax pursuant to Section 127(3A) of the MITA.
Gain from the realisation of investments
Pursuant to Section 61(1) (b) of the MITA, gains from the realisation of investments will not be treated as
income of the Fund and hence, are not subject to income tax. Such gains may be subject to real property
gains tax ("RPGT") under the Real Property Gains Tax Act, 1976 (“RPGT Act”), if the gains are derived from the
sale of chargeable assets, as defined in the RPGT Act. Any chargeable gain on the disposal of chargeable assets
from 1 January 2010 onwards would be subject to RPGT at the applicable tax rate depending on the holding
period. However, under the Real Property Gains Tax (Exemption) (No.2) Order 2009, Funds can enjoy a full
exemption from RPGT on disposals of chargeable assets held more than 5 years and an effective tax rate of 5%
for all disposals of chargeable assets which are held for 5 years or less.
AMB Client Services : 03-2034 0800
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Master Prospectus 2010/2011
Taxation of unit holders
Non-taxable and exempt distributions
Tax exempt distributions made out of gains from the realisation of investments and other exempt income
earned by the Fund will not be subject to Malaysian income tax in the hands of the unit holders.
Non-resident unit holders may be subject to tax in their respective countries depending on the provisions of
the tax legislation in the respective countries and any existing double taxation arrangements with Malaysia.
Gains from sale of units
Gains arising from the realisation of investments will not be subject to income tax in the hands of unit holders
unless they are insurance companies, financial institutions or traders/ dealers in securities.
Unit splits and reinvestment of distributions
Unit holders may also receive new units as a result of unit splits or may choose to reinvest their distributions.
The income tax implications of these are as follows:
•
Unit splits – new units issued by the Funds pursuant to a unit split will not be subject to income tax
in the hands of the unit holders.
•
Reinvestment of distributions – unit holders may choose to reinvest their income distribution in new
units by informing the Manager. In this event, the unit holder will be deemed to have received the
distribution and reinvested it with the Funds.
**********************************************
We hereby confirm that, as at the date of this letter, the statements made in this report correctly reflect our
understanding of the tax position under current Malaysian tax legislation and the related interpretation and
practice thereof, all of which are subject to change, possibly on a retrospective basis. We have not been
retained (unless specifically instructed hereafter), nor are we obligated to monitor or update the statements
for future conditions that may affect these statements.
The statements made in this letter are not intended to be a complete analysis of the tax consequences
relating to an investor in the Fund. As the particular circumstances of each investor may differ, we
recommend that investors obtain independent advice on the tax issues associated with an investment in the
Fund.
Yours faithfully
Ernst & Young Tax Consultants Sdn Bhd
Noor Rida Hamzah
Partner
Ernst & Young Tax Consultants Sdn. Bhd. has given its consent to the inclusion of the Taxation Adviser’s Letter
in the form and context in which it appears in this Prospectus and has not withdrawn such consent prior to the
delivery of a copy of this Prospectus for approval.
AMB Client Services : 03-2034 0800
215
Master Prospectus 2010/2011
17 Consents
The consents of the Trustees and its delegates, the Principal Banker, the Solicitors, the External Investment
Managers, DBMB, PHNB, and the Tax Advisors for the inclusion of their names in the form and context in
which such names appear in this Master Prospectus have been given before the issue of this Master
Prospectus and have not been subsequently withdrawn.
Ernst & Young Tax Consultants Sdn Bhd and PricewaterhouseCoopers Taxation Services Sdn Bhd have given
their written consents to the inclusion of their report as Taxation Advisors in the form and context in which
they appear in this Master Prospectus and have not withdrawn such consents prior to the lodgement of a copy
of this Master Prospectus for registration.
AMB Client Services : 03-2034 0800
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Master Prospectus 2010/2011
18 Documents Available for Inspection
For a period of not less than 12 months from the date of issuance of this Master Prospectus, the following
documents or copies thereof, where applicable, may be inspected, at the principal office of the Manager and
the Trustee, without charge: (i)
The Deeds;
(ii)
Each material contract or document referred to in the Master Prospectus;
(iii)
The latest annual and interim reports of the Funds;
(iv)
All reports, letters or other documents, valuations and statements by any expert, any part of which is
extracted or referred to in the Master Prospectus;
(v)
The audited financial statements of the Manager and the Funds for the current financial year (where
applicable);
(vi)
The audited financial statements of the Manager and the Funds for the last 3 financial years or from
the date of incorporation/commencement, if less than 3 years, preceding the date of Master
Prospectus; and
(vii)
All consents given by experts or persons whose statements appear in the Master Prospectus.
AMB Client Services : 03-2034 0800
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Master Prospectus 2010/2011
19 List of Distributors’ Offices
Institutional Unit Trust Adviser (IUTA) appointed by the Manager:
MALAYAN BANKING BERHAD
(All AMB’s Funds)
1st Floor Menara Maybank
100 Jalan Tun Perak 50050
Kuala Lumpur.
Maybank Group Call Centre : 1-300-88-6688
Website : www.maybank2u.com.my
BANK KERJASAMA RAKYAT MALAYSIA BERHAD
(Only for AMBDY, AMBDI, AMBDA)
Financial Planning Services
15th Floor, Bangunan Perkim
No. 150, Jalan Ipoh
51200 Kuala Lumpur
Tel : 03-40272538
Tele-Rakyat : 1-300-88-12265
AMANAH SAHAM NASIONAL BERHAD
(Only PNB SIF, AMBVTF & AMBETF)
Jabatan Perhubungan Pelanggan & Ejen
UG Balai PNB
201-A Jalan Tun Razak
50400 Kuala Lumpur
Hotline : 03-2057 3000 / 03-20573111
Fax
: 03-2050 5220
Website: www.asnb.com.my
Email
: [email protected]
Any other appointed IUTAs from time to time.
LIST OF OFFICES
ASNB OFFICES
KUALA LUMPUR*
ASNB Main Counter
First Floor, Balai PNB
201-A Jalan Tun Razak
Tel : 03-2050 5500
Fax: 03-2161 8852
SELANGOR*
Amanah Saham Nasional Berhad
Lot 2-1 & 2-2
Pusat Dagangan UMNO Shah Alam
Persiaran Damai Seksyen 11
40000 Shah Alam
Selangor
Tel : 03-5512 1366 / 5510 3155
Fax: 03-5513 7155
PUTRAJAYA*
Amanah Saham Nasional Berhad
Lot 27 Kompleks Perbadanan Putrajaya
Persiaran Perdana, Presint 3
62675 Putrajaya
Selangor
Tel : 03-8890 4880
Fax: 03-8890 4890
KEDAH*
Amanah Saham Nasional Berhad
27 Kompleks Shahab Perdana
Jalan Sultanah Sambungan
05200 Alor Star
Kedah
Tel: 04-731 0770 / 731 1012 / 733 4603
Fax: 04-731 4140
AMB Client Services : 03-2034 0800
218
Master Prospectus 2010/2011
PERLIS*
Amanah Saham Nasional Berhad
Lot 7 Jalan Indera Kayangan
01000 Kangar
Perlis
Tel: 04-978 1110 / 978 1111 / 977 5702
Fax: 04-976 0800
JOHOR*
Amanah Saham Nasional Berhad
49 Bangunan Tabung Haji
Jalan Segget
80000 Johor Bahru
Johor
Tel: 07-224 0077 / 227 2277
Fax: 07-223 2533
NEGERI SEMBILAN*
Amanah saham Nasional Berhad
36 Jalan Tunku Hassan
70000 Seremban
Negeri Sembilan
Tel: 06-762 6239 /763 8546 / 761 8451
Fax: 06-763 3384
TERENGGANU*
Amanah Saham Nasional Berhd
No 15 Jalan Batas Batu
20300 Kuala Terengganu
Terengganu
Tel: 09-630 1500 / 630 1501
Fax: 09-630 1506
PAHANG
Amanah Saham Nasional Berhad
71 & 73 Tingkat Bawah
Jalan Tun Ismail
25000 Kuantan
Pahang
Tel: 09-517 8340 / 517 8341
Fax: 09-513 6694
MELAKA*
Amanah Saham Nasional Berhad
No 11 & 13 Kompleks Perniagaan Al Azim
Jalan KPAA 1 Bukit Baru
75150 Melaka
Tel: 06-282 7361 / 284 0690
Fax: 06-283 9940
PULAU PINANG
Amanah Saham Nasional Berhad
2777 Jalan Chain Ferry
Taman Inderawasih
13600 Perai
Pulau Pinang
Tel: 04-399 4378 / 399 4381
Fax: 04-399 4404
KELANTAN*
Amanah Saham Nasional Berhad
2983-V Jalan Parit Dalam
15000 Kota Bharu
Kelantan
Tel: 09-741 9900 / 741 9909
Fax: 09-744 6663
PERAK*
Amanah Saham Nasional Berhad
No 8 & 8A Persiaran Greentown 1
Greentown Business Centre
30450 Ipoh
Perak
Tel: 05-255 5500 / 255 5505
Fax: 05-255 5506
SARAWAK
Amanah Saham Nasional Berhad*
Tingkat Bawah & 1
Lot 335 Seksyen 9 KTLD
Jalan Rubber
93400 Kuching
Sarawak
Tel: 082-250 389 / 410 210
Fax: 082-250 313
SABAH
Amanah Saham Nasional Berhad*
Tkt Bawah & 1 Blok G Lot 55
Asiacity Phase 1B
Peti Surat 12149
88000 Kota Kinabalu
Sabah
Tel: 088-257 725 / 241 011
Fax: 088-218 814
Amanah Saham Nasional Berhad
Lot 886 Block 9
MCLD Miri Waterfront
Commercial Centre
98000 Miri
Sarawak
Tel: 085-423 746 / 419 984
Fax: 085-423 384
AMB Client Services : 03-2034 0800
219
Master Prospectus 2010/2011
Amanah Saham Nasional Berhad
TB 4287 & TB 4280
Tkt Bawah & 1 Town Ext II
Jalan Masjid Kompleks Fajar
91000 Tawau
Sabah
Tel: 089-779 389 / 779 390 / 779 391
Fax: 089-776 600
Amanah Saham Nasional Berhad
4C Ground Floor
Lot 832 Jalan Sabu
95000 Sri Aman
Sarawak
Tel: 083-321 742
Fax: 083-323 233
Amanah Saham Nasional Berhad
Lot 15 Tingkat Bawah
Bandar Pasaraya Fasa 1
90000 Sandakan
Sabah
Tel: 089-210 486 / 223 530
Fax: 089-210 597
Amanah Saham Nasional Berhad
Lot 1007 & 1008
Jalan Kampung Nyabor
96000 Sibu
Sarawak
Tel: 084-314 967
Fax: 084-322 497
Note: *ASNB offices which provide full range of services including cash transaction.
AMB Client Services : 03-2034 0800
220
I WISH TO INVEST THE AMOUNT RM ____________________IN THE ABOVE NAMED TRUST FUND UPON THE CONDITION OF THE PROSPECTUS AND SUPPLEMENTARY PROSPECTUS (IF ANY) ISSUED TOGETHER WITH THIS
APPLICATION FORM WHICH I/WE HAVE READ, ON BECOMING A UNIT HOLDER, I/WE AGREE TO BE BOUND BY THE PROVISION OF THE DEED RELATING TO THE FUND (S).
Reinvestment
To send me/us income distribution warrant by post / Waran pengagihan pendapatan dihantar kepada saya/kami melalui pos
A cooling off right is only given to an investor, other than those
stated in
Clause 11.10 of the Securities Commission
Guidelines on Unit Trust Funds, who is investing in any unit
trust funds managed by the Manager for the first time.
A joint Holder who is below 18 years of age, a photocopy of his/her
Identity Card or Birth Certificate must be enclosed in the case of
death of the first registered holder and before the minor attains the
age of 18, the estate of the first registered holder will be recognized
by the Manager and the Trustee as having the title to or interest in
such units.
A statement will be issued upon receipt and acceptance of the
application by the Manager.
In case of joint holders, all
correspondence and payments relating to the Units will be sent to
the first-named ‘applicant’. Statement will be dispatched by post at
investors own risk.
PRE-INVESTMENT FORM
ATTENTION UNIT TRUST INVESTORS
IMPORTANT!
Your Unit Trust Consultant (UTC) is
required to explain all of the following to
you
5) Your UTC may represent a company that
uses a nominee system and your rights
as a unit holder may be limited if you
invest in unit trust funds through it. If his
or her company uses a nominee system,
ask if your rights as a unit holder will be
limited in any way.
You Should Also Know
Signing this form does not preclude you from taking action
against relevant party/parties under any circumstances.
Do You Know?
1) You can buy unit trusts either through a
Unit Trust Consultant (UTC), Institutional
Unit Trust Advisers (IUTA), Corporate
Unit Trust Advisers (CUTA) or directly
from Unit Trust Management Company
(UTMC) or online, but each has different
sales charge and level of service.
Choose the one that best suits your
needs.
2) If you redeem your units in a unit trust
fund and then purchase units in another,
you will probably have to pay a sales
charge. However, if you switch from one
fund to another managed by the same
UTMC, it is likely that you may not have
to pay any sales charge. Ask about
switching before you redeem.
3) Different types of unit trust funds carry
different levels of risk. Some are higher
in risk than others. Ask about the risks
before investing in a fund. Make sure you
know what your fund is investing in.
4) If you are a first time investor in a UTMC,
you may be eligible for cooling-off rights,
whereby you can change your mind
within six (6) business days after
investing and withdraw your unit trust
investment. Ask about your eligibility for
cooling-off.
Yes(√)/
No(X)
a) Only registered UTCs are allowed to sell unit
trust funds. Your UTC should show you a valid
authorisation card confirming that he/she is
registered with the Federation of Investment
Managers Malaysia (FIMM).
Investor’s Confirmation
I/We confirm that the UTC has explained all the points
overleaf to me/us.
1) Applicant
Signature : _______________________________
Name
: _______________________________
NRIC/Identification Number/Passport No.:
________________________________________
Date
:_______________________________
2) Joint Applicant (If applicable)
b) A unit trust fund may only be offered to the
public if it is approved by the Securities
Commission
Malaysia
(SC).
Go
to
www.sc.com.my for a list of unit trust funds
currently available in the market or call 603-6204
8777 for assistance.
Signature :_______________________________
Name
:_______________________________
NRIC/Identification Number/Passport No.:
_______________________________________
c) When you buy into a unit trust fund, you should
be given the latest copy of prospectus for free.
Read the prospectus carefully; understand its
contents before investing.
d) You may have to pay direct and indirect fees and
possibly other charges too. Ask about applicable
fees.
e) If you have concerns or complaints about any
unit trust fund, you can contact FIMM at 6032092 3800 (www.fimm.com.my) or the Investor
Affairs & Complaints Department of the SC at
603-6204 8999.
f)
You should not make payment in cash to the
UTC or issue a cheque in the name of UTC.
Date
:_______________________________
Unit Trust Consultant’s Declaration
I declare that I have explained the points overleaf and
the investor(s) understand(s) them.
Signature :_______________________________
Name
:_______________________________
NRIC/Identification Number/Passport No.:
________________________________________
Registered as UTC of UTMC/IUTA/CUTA^:
________________________________________
^Delete where not applicable.
Note: This form is required for investments in a new fund by
INDIVIDUAL investors (excluding additional investment/top ups),
th
including switching-in to new funds after 15 February 2010.

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