Master Prospectus 2010/2011
Transcrição
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 Aldilla@Zilfalila 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 1 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 AMB Client Services 03-2034 0800 2 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 3 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 4 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 5 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 6 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; AMB Client Services 03-2034 0800 7 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 8 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) AMB Client Services 03-2034 0800 9 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 10 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 11 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 AMB Client Services 03-2034 0800 155 12 Master Prospectus 2010/2011 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 AMB Client Services 03-2034 0800 47 155 13 Master Prospectus 2010/2011 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 AMB Client Services 03-2034 0800 50 155 14 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 AMB Client Services 03-2034 0800 52 155 15 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 AMB Client Services 03-2034 0800 55 155 16 Master Prospectus 2010/2011 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 AMB Client Services 03-2034 0800 60 155 17 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 AMB Client Services 03-2034 0800 64, 123 64, 123 63 155 18 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) AMB Client Services 03-2034 0800 19 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 AMB Client Services 03-2034 0800 72 155 20 Master Prospectus 2010/2011 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 AMB Client Services 03-2034 0800 76 155 21 Master Prospectus 2010/2011 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. AMB Client Services 03-2034 0800 22 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 AMB Client Services 03-2034 0800 23 155 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 AMB Client Services 03-2034 0800 155 24 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 AMB Client Services 03-2034 0800 25 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 AMB Client Services 03-2034 0800 26 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 AMB Client Services 03-2034 0800 27 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 AMB Client Services 03-2034 0800 28 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 29 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 30 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 AMB Client Services 03-2034 0800 31 Master Prospectus 2010/2011 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. AMB Client Services 03-2034 0800 32 Master Prospectus 2010/2011 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. AMB Client Services 03-2034 0800 33 Master Prospectus 2010/2011 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. AMB Client Services 03-2034 0800 34 Master Prospectus 2010/2011 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. AMB Client Services 03-2034 0800 35 Master Prospectus 2010/2011 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. AMB Client Services 03-2034 0800 36 Master Prospectus 2010/2011 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. AMB Client Services 03-2034 0800 37 Master Prospectus 2010/2011 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. AMB Client Services 03-2034 0800 38 Master Prospectus 2010/2011 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 AMB Client Services 03-2034 0800 39 Master Prospectus 2010/2011 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 AMB Client Services 03-2034 0800 40 Master Prospectus 2010/2011 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 AMB Client Services 03-2034 0800 41 Master Prospectus 2010/2011 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. AMB Client Services 03-2034 0800 42 Master Prospectus 2010/2011 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 AMB Client Services 03-2034 0800 43 Master Prospectus 2010/2011 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 AMB Client Services 03-2034 0800 44 Master Prospectus 2010/2011 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. AMB Client Services 03-2034 0800 45 Master Prospectus 2010/2011 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. AMB Client Services 03-2034 0800 46 Master Prospectus 2010/2011 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. AMB Client Services 03-2034 0800 47 Master Prospectus 2010/2011 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. AMB Client Services 03-2034 0800 48 Master Prospectus 2010/2011 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. AMB Client Services 03-2034 0800 49 Master Prospectus 2010/2011 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 AMB Client Services 03-2034 0800 50 Master Prospectus 2010/2011 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. AMB Client Services 03-2034 0800 51 Master Prospectus 2010/2011 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. AMB Client Services 03-2034 0800 52 Master Prospectus 2010/2011 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. AMB Client Services 03-2034 0800 53 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. AMB Client Services 03-2034 0800 54 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 AMB Client Services 03-2034 0800 55 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. AMB Client Services 03-2034 0800 56 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. AMB Client Services 03-2034 0800 57 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. AMB Client Services 03-2034 0800 58 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. AMB Client Services 03-2034 0800 59 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. AMB Client Services 03-2034 0800 60 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. AMB Client Services 03-2034 0800 61 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. AMB Client Services 03-2034 0800 62 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. AMB Client Services 03-2034 0800 63 Master Prospectus 2010/2011 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. AMB Client Services 03-2034 0800 64 Master Prospectus 2010/2011 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. AMB Client Services 03-2034 0800 65 Master Prospectus 2010/2011 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: AMB Client Services 03-2034 0800 66 Master Prospectus 2010/2011 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 AMB Client Services 03-2034 0800 67 Master Prospectus 2010/2011 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. AMB Client Services 03-2034 0800 68 Master Prospectus 2010/2011 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. AMB Client Services 03-2034 0800 69 Master Prospectus 2010/2011 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. AMB Client Services 03-2034 0800 70 Master Prospectus 2010/2011 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. AMB Client Services 03-2034 0800 71 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 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. AMB Client Services 03-2034 0800 72 Master Prospectus 2010/2011 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. AMB Client Services 03-2034 0800 73 Master Prospectus 2010/2011 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. AMB Client Services 03-2034 0800 74 Master Prospectus 2010/2011 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 AMB Client Services 03-2034 0800 75 Master Prospectus 2010/2011 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. AMB Client Services 03-2034 0800 76 Master Prospectus 2010/2011 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. AMB Client Services 03-2034 0800 77 Master Prospectus 2010/2011 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. AMB Client Services 03-2034 0800 78 Master Prospectus 2010/2011 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. AMB Client Services 03-2034 0800 79 Master Prospectus 2010/2011 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):- AMB Client Services 03-2034 0800 80 Master Prospectus 2010/2011 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 AMB Client Services 03-2034 0800 81 Master Prospectus 2010/2011 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”). AMB Client Services 03-2034 0800 82 Master Prospectus 2010/2011 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. AMB Client Services 03-2034 0800 83 Master Prospectus 2010/2011 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. AMB Client Services 03-2034 0800 84 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 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. AMB Client Services 03-2034 0800 85 Master Prospectus 2010/2011 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. AMB Client Services 03-2034 0800 86 Master Prospectus 2010/2011 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. AMB Client Services 03-2034 0800 87 Master Prospectus 2010/2011 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. AMB Client Services 03-2034 0800 88 Master Prospectus 2010/2011 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. AMB Client Services 03-2034 0800 89 Master Prospectus 2010/2011 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. AMB Client Services 03-2034 0800 90 Master Prospectus 2010/2011 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. AMB Client Services 03-2034 0800 91 Master Prospectus 2010/2011 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. AMB Client Services 03-2034 0800 92 Master Prospectus 2010/2011 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 AMB Client Services 03-2034 0800 93 Master Prospectus 2010/2011 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. AMB Client Services 03-2034 0800 94 Master Prospectus 2010/2011 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. AMB Client Services 03-2034 0800 95 Master Prospectus 2010/2011 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. AMB Client Services 03-2034 0800 96 Master Prospectus 2010/2011 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. AMB Client Services 03-2034 0800 97 Master Prospectus 2010/2011 3.2 Permitted Investments for the Conventional Funds AMBSCTF AMBEBTF AMBETF AMBVTF AMBLTF Today AMBLTF 2014 AMBDTF √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ 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, which are offered directly by the company approved for listing, by way of private placement or on a tender basis. √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ 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. √ √ √ 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. √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ AMB Client Services 03-2034 0800 √ 98 √ 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 Master Prospectus 2010/2011 √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ 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. AMB Client Services 03-2034 0800 99 Master Prospectus 2010/2011 • 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. √ √ √ √ √ √ √ √ √ √ AMB Client Services 03-2034 0800 100 √ √ √ AMBDY AMBDI AMBDA Master Prospectus 2010/2011 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. AMB Client Services 03-2034 0800 101 √ Master Prospectus 2010/2011 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. AMB Client Services 03-2034 0800 102 Master Prospectus 2010/2011 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. AMB Client Services 03-2034 0800 103 Master Prospectus 2010/2011 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. AMB Client Services 03-2034 0800 104 Master Prospectus 2010/2011 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. AMB Client Services 03-2034 0800 105 Master Prospectus 2010/2011 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 AMB Client Services 03-2034 0800 106 Master Prospectus 2010/2011 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. AMB Client Services 03-2034 0800 107 Master Prospectus 2010/2011 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. AMB Client Services 03-2034 0800 108 Master Prospectus 2010/2011 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) AMB Client Services 03-2034 0800 109 Master Prospectus 2010/2011 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. AMB Client Services 03-2034 0800 110 Master Prospectus 2010/2011 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 AMB Client Services 03-2034 0800 111 Master Prospectus 2010/2011 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 AMB Client Services 03-2034 0800 112 Master Prospectus 2010/2011 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. AMB Client Services 03-2034 0800 113 Master Prospectus 2010/2011 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. AMB Client Services 03-2034 0800 114 Master Prospectus 2010/2011 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. AMB Client Services 03-2034 0800 115 Master Prospectus 2010/2011 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. AMB Client Services 03-2034 0800 116 Master Prospectus 2010/2011 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. AMB Client Services 03-2034 0800 117 Master Prospectus 2010/2011 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. AMB Client Services 03-2034 0800| 118 Master Prospectus 2010/2011 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. AMB Client Services 03-2034 0800 119 Master Prospectus 2010/2011 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. AMB Client Services 03-2034 0800 120 Master Prospectus 2010/2011 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. AMB Client Services 03-2034 0800 121 Master Prospectus 2010/2011 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. AMB Client Services 03-2034 0800 122 Master Prospectus 2010/2011 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. AMB Client Services 03-2034 0800 123 Master Prospectus 2010/2011 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. AMB Client Services 03-2034 0800 124 Master Prospectus 2010/2011 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. AMB Client Services 03-2034 0800 125 Master Prospectus 2010/2011 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. AMB Client Services 03-2034 0800 126 Master Prospectus 2010/2011 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. AMB Client Services 03-2034 0800 127 Master Prospectus 2010/2011 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. AMB Client Services 03-2034 0800 128 Master Prospectus 2010/2011 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. AMB Client Services 03-2034 0800 129 Master Prospectus 2010/2011 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. AMB Client Services 03-2034 0800 130 Master Prospectus 2010/2011 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. AMB Client Services 03-2034 0800 131 Master Prospectus 2010/2011 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. AMB Client Services 03-2034 0800 132 Master Prospectus 2010/2011 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 AMB Client Services 03-2034 0800 133 Master Prospectus 2010/2011 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 AMB Client Services 03-2034 0800 134 Master Prospectus 2010/2011 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 AMB Client Services 03-2034 0800 135 Master Prospectus 2010/2011 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 AMB Client Services 03-2034 0800 136 Master Prospectus 2010/2011 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 AMB Client Services 03-2034 0800 137 Master Prospectus 2010/2011 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 AMB Client Services 03-2034 0800 138 Master Prospectus 2010/2011 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 AMB Client Services 03-2034 0800 139 Master Prospectus 2010/2011 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 AMB Client Services 03-2034 0800 140 Master Prospectus 2010/2011 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. AMB Client Services 03-2034 0800 141 Master Prospectus 2010/2011 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. AMB Client Services 03-2034 0800 142 Master Prospectus 2010/2011 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. AMB Client Services 03-2034 0800 143 Master Prospectus 2010/2011 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. AMB Client Services 03-2034 0800 144 Master Prospectus 2010/2011 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. AMB Client Services 03-2034 0800 145 Master Prospectus 2010/2011 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% AMB Client Services 03-2034 0800 146 Master Prospectus 2010/2011 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. AMB Client Services 03-2034 0800 147 Master Prospectus 2010/2011 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. AMB Client Services 03-2034 0800 148 Master Prospectus 2010/2011 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. AMB Client Services : 03-2034 0800 149 Master Prospectus 2010/2011 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. AMB Client Services : 03-2034 0800 150 Master Prospectus 2010/2011 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. AMB Client Services : 03-2034 0800 151 Master Prospectus 2010/2011 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. AMB Client Services : 03-2034 0800 152 Master Prospectus 2010/2011 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. AMB Client Services : 03-2034 0800 153 Master Prospectus 2010/2011 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. AMB Client Services : 03-2034 0800 154 Master Prospectus 2010/2011 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. AMB Client Services : 03-2034 0800 155 Master Prospectus 2010/2011 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. AMB Client Services : 03-2034 0800 156 Master Prospectus 2010/2011 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. AMB Client Services : 03-2034 0800 157 Master Prospectus 2010/2011 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. AMB Client Services : 03-2034 0800 158 Master Prospectus 2010/2011 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. AMB Client Services : 03-2034 0800 159 Master Prospectus 2010/2011 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. AMB Client Services : 03-2034 0800 160 Master Prospectus 2010/2011 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, AMB Client Services : 03-2034 0800 161 Master Prospectus 2010/2011 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 Ismail@Daud (MIA 13755) Company Secretary With effect from November 30, 2006, Puan Adibah Khairiah binti Ismail@Daud 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. AMB Client Services : 03-2034 0800 162 Master Prospectus 2010/2011 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. AMB Client Services : 03-2034 0800 163 Master Prospectus 2010/2011 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. AMB Client Services : 03-2034 0800 164 Master Prospectus 2010/2011 • 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. AMB Client Services : 03-2034 0800 165 Master Prospectus 2010/2011 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. AMB Client Services : 03-2034 0800 166 Master Prospectus 2010/2011 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. AMB Client Services : 03-2034 0800 167 Master Prospectus 2010/2011 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. AMB Client Services : 03-2034 0800 168 Master Prospectus 2010/2011 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. AMB Client Services : 03-2034 0800 169 Master Prospectus 2010/2011 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. AMB Client Services : 03-2034 0800 170 Master Prospectus 2010/2011 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 AMB Client Services : 03-2034 0800 171 Master Prospectus 2010/2011 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. AMB Client Services : 03-2034 0800 172 Master Prospectus 2010/2011 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 AMB Client Services : 03-2034 0800 173 Master Prospectus 2010/2011 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. AMB Client Services : 03-2034 0800 174 Master Prospectus 2010/2011 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. AMB Client Services : 03-2034 0800 175 Master Prospectus 2010/2011 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. AMB Client Services : 03-2034 0800 176 Master Prospectus 2010/2011 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. AMB Client Services : 03-2034 0800 177 Master Prospectus 2010/2011 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. AMB Client Services : 03-2034 0800 178 Master Prospectus 2010/2011 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. AMB Client Services : 03-2034 0800 179 Master Prospectus 2010/2011 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 AMB Client Services : 03-2034 0800 180 Master Prospectus 2010/2011 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 - AMB Client Services : 03-2034 0800 181 Master Prospectus 2010/2011 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. AMB Client Services : 03-2034 0800 182 Master Prospectus 2010/2011 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 AMB Client Services : 03-2034 0800 183 Master Prospectus 2010/2011 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) AMB Client Services : 03-2034 0800 184 Master Prospectus 2010/2011 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; AMB Client Services : 03-2034 0800 185 Master Prospectus 2010/2011 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. AMB Client Services : 03-2034 0800 186 Master Prospectus 2010/2011 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. AMB Client Services : 03-2034 0800 187 Master Prospectus 2010/2011 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 AMB Client Services : 03-2034 0800 188 Master Prospectus 2010/2011 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). AMB Client Services : 03-2034 0800 189 Master Prospectus 2010/2011 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. AMB Client Services : 03-2034 0800 190 Master Prospectus 2010/2011 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). AMB Client Services : 03-2034 0800 191 Master Prospectus 2010/2011 • 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. AMB Client Services : 03-2034 0800 192 Master Prospectus 2010/2011 (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. AMB Client Services : 03-2034 0800 193 Master Prospectus 2010/2011 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. AMB Client Services : 03-2034 0800 194 Master Prospectus 2010/2011 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. AMB Client Services : 03-2034 0800 195 Master Prospectus 2010/2011 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. AMB Client Services : 03-2034 0800 196 Master Prospectus 2010/2011 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 AMB Client Services : 03-2034 0800 197 Master Prospectus 2010/2011 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. AMB Client Services : 03-2034 0800 198 Master Prospectus 2010/2011 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. AMB Client Services : 03-2034 0800 199 Master Prospectus 2010/2011 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. AMB Client Services : 03-2034 0800 200 Master Prospectus 2010/2011 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. AMB Client Services : 03-2034 0800 201 Master Prospectus 2010/2011 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. AMB Client Services : 03-2034 0800 202 Master Prospectus 2010/2011 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. AMB Client Services : 03-2034 0800 203 Master Prospectus 2010/2011 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, AMB Client Services : 03-2034 0800 204 Master Prospectus 2010/2011 • 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. AMB Client Services : 03-2034 0800 205 Master Prospectus 2010/2011 • 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. AMB Client Services : 03-2034 0800 206 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 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. AMB Client Services : 03-2034 0800 207 Master Prospectus 2010/2011 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. AMB Client Services : 03-2034 0800 208 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 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. AMB Client Services : 03-2034 0800 209 Master Prospectus 2010/2011 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 210 Master Prospectus 2010/2011 • 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. AMB Client Services : 03-2034 0800 211 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. AMB Client Services : 03-2034 0800 212 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 213 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 214 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 216 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 217 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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