AMB DIVIDEND TRUST FUND
RESPONSIBILITY STATEMENT
This Product Highlights Sheet has been reviewed and approved by the directors or authorised
committee or persons approved by the Board of Amanah Mutual Berhad and they collectively
and individually accept full responsibility for the accuracy of the information. Having made all
reasonable inquiries, they confirm to the best of their knowledge and belief, there are no false
or misleading statements, or omission of other facts which would make any statement in the
Product Highlights Sheet false or misleading.
STATEMENTS OF DISCLAIMER
The Securities Commission Malaysia has authorised the issuance of AMB Dividend Trust Fund
and a copy of this Product Highlights Sheet has been lodged with the Securities Commission
Malaysia.
The authorisation of AMB Dividend Trust Fund and lodgement of this Product Highlights Sheet
should not be taken to indicate that the Securities Commission Malaysia recommends AMB
Dividend Trust Fund or assumes responsibility for the correctness of any statement made or
opinion or report expressed in this Product Highlights Sheet.
The Securities Commission Malaysia is not liable for any non-disclosure on the part of the
Amanah Mutual Berhad responsible for AMB Dividend Trust Fund and takes no responsibility
for the contents of this Product Highlights Sheet. The Securities Commission Malaysia makes
no representation on the accuracy or completeness of this Product Highlights Sheet, and
expressly disclaims any liability whatsoever arising from, or in reliance upon the whole or any
part of its contents.
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This Product Highlights Sheet only highlights the key features and risk of this unlisted capital
market product. Investors are advised to request, read and understand the disclosure
documents before deciding to invest.
PRODUCT HIGHLIGHTS SHEET
PRODUCT NAME: AMB DIVIDEND TRUST FUND (AMBDTF)
BRIEF INFORMATION ON THE FUND
AMB Dividend Trust Fund (AMBDTF) is managed by Amanah Mutual Berhad (AMB). It is a conventional open-ended equity fund. Therefore,
the Fund does not provide capital protection or capital guarantee.
The Fund’s objective is to provide investors with a regular income stream and to attain medium-to-long-term capital appreciation through
investing in high (and potentially high) dividend yielding equities (including foreign equities).
PRODUCT SUITABILITY
This fund is suitable for investors who:· are conservative and prefers receiving regular and steady income in the form of distributions.
· have a moderate risk appetite.
KEY PRODUCT FEATURES
Investment policy and 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 total NAV of the Fund). The selection of appropriate equities will be driven by the EIM’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.
Currency
MYR (Malaysian Ringgit)
Launch date
6th June 2006
Financial year end
30th April
Domicile
Malaysia
Registration
Securities Commission Malaysia
Asset allocation
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Min 70% max 99.80% in equities
Max 20% in listed REITs.
Min 0.20% max 30% in fixed income securities and cash
Up to 30% of the Fund’s total NAV may be invested in Asian exJapan markets and/or the EIM may choose to invest solely in the
domestic market.
Benchmark
70% of FBM KLCI + 30% of 12-month fixed deposit rate of
commercial banks.
Distribution policy
Income (if any), shall be distributed semi annually or annually at the
discretion of the Manager, subject to the approval from the Trustee.
Manager
Amanah Mutual Berhad (195414-U)
Trustee
HSBC (Malaysia) Trustee Berhad (001281-T)
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Board of directors
Investment Committee Members (ICM)
External Investment Manager(EIM)
Tun Ahmad Sarji bin Abdul Hamid
Tan Sri Dato’ Sri Hamad Kama Piah bin Che Othman
Tan Sri Dato’ Dr. Wan Mohd. Zahid bin Mohd. Noordin
Tan Sri Dato’ Md. Desa bin Pachi
Dato’ Idris bin Kechot
Tun Ahmad Sarji bin Abdul Hamid
Tan Sri Dato’ Dr. Wan Mohd. Zahid bin Mohd. Noordin
Tan Sri Dato’ Md. Desa bin Pachi
Dato’ Idris bin Kechot
Hwang Investment Management Berhad (429786-T)
Auditors
Messrs. Ernst & Young (AF : 0039)
Tax Advisor
Ernst & Young Tax Consultants Sdn Bhd (179793-K)
Solicitors
Messrs. Zainal Abidin & Co.
The Fund’s investment strategy does include temporary defensive positions to protect investor from significant losses.
The EIM, upon approval from ICM of AMBDTF, will execute temporary defensive positions in dealing with adverse market conditions, unstable
economic situation, political upheaval and other external factors affecting market. In this regard, the Fund may hold cash at higher level than
what is prescribed in the asset allocation. It may also invest into cash equivalent instruments as the main asset of the Fund to maintain low
volatility.
When there is excessive gains during best market scenario, AMBDTF shall realise as much profits from the portfolio holdings. This will be
reflected as income to the Fund. With that higher income distribution can be declared.
KEY RISKS
General Risk
1.
2.
3.
4.
5.
Market risk
Non-compliance risk
Inflation risk
Liquidity risk
Fund management risk
6. Operational risk
7. Returns not guaranteed
8. Loan financing risk
9. Force majeure risk
(Source : Master Prospectus for Conventional Funds-Section 4)
Specific risks associated with AMBDTF
Individual equity risk
AMBDTF is subject to the volatility of prices in the share market. The volatility of prices in each stock will affect the Fund’s value daily. The
performance of individual stocks, which make up the portfolio, will fluctuate according to changes in the market value of the investments. The
fluctuations can be significant in the short-term. This accounts for the market risk when investing in this Fund. However, this impact is
minimised through portfolio diversification.
Credit 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.
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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 RM, the investments will face currency losses in addition to the
capital gains/losses. This may lead to a lower NAV of the Fund.
Country risk
The foreign investments of the Fund may be affected by risks specific to the country, in which it invests. Such risks include changes in a
country’s economic fundamentals, social and political stability, currency movements and foreign policies, etc. These may impact on the prices
of listed securities in the particular country.
FEES & CHARGES
Direct fees & charges
Fees & charges
Percentage (%)
* Sales charge
5.5
EPF Sales charge
3.0
Repurchase fee
Nil
** Annual management fee
1.50
** Annual trustee fee
Refer Note 1
* The sales charge above is negotiable, subject to Manager discretion.
**Annual management fee and annual trustee fee are calculated as the percentage of the NAV of the Fund, calculated on a daily basis
before deducting the fees for the day.
Note 1:
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.
Table for switching charges for AMBDTF (Equity) to other funds of AMB
The charges for switching are set out below:
Switching
charges
To target fund
Equity
Bond
Balanced
RM25 per
transaction
RM25 per
transaction
RM25 per
transaction
Money market
Switching from
AMBDTF
Nil
Distribution Units of conventional funds cannot be switched into Shariah funds as it is not permitted from the Shariah
perspective. However the principal amount of conventional funds is allowed to be switched into Shariah funds.
Note:
The above table is applicable for all switching transactions, except where the sales charge of the fund to be switched into is equal
or lower than the sales charge of the fund switched from, in which case the switching fee shall be RM25 only.
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Other annual operating expenses
The auditor’s fees, tax agents’ fee and other relevant professional fees; the costs of printing and distribution of annual and interim reports, tax
vouchers and warrants; cost of modification of the Deed other than those for the benefit of the Manager and/or Trustee; and other notices to
Unit Holders as well as expenses that are directly related and necessary for the administration of the Fund as set out in the Deed.
These costs have been factored into the quoted NAV per Unit as they are related and necessary to the business of the Fund.
VALUATIONS AND EXITING FROM INVESTMENT
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 (two (2) preceding days).
The NAV per unit of AMBDTF is available on our website (www.ambmutual.com.my), AMB’s office and its Distribution Channel branches.
1.Pricing of Units
The Manager adopts the single pricing policy in calculating your investment. Single pricing equates to prices quoted and transacted on a
single price.
The price of Units is computed on a Forward Pricing basis. As such, Units of the Fund are transacted at the NAV per Unit at the next Valuation
Point after receipt of the transaction request and acceptance by the Manager. Consequently, any changes in the underlying assets of the Fund
will cause its Unit prices to vary.
2. Procedure to Repurchase Units
Repurchase can be made in part or entirely at any time by completing the repurchase form, which can be obtained at AMB or any Distribution
Channels. Below are the required documents/forms to be submitted to repurchase Units:(a) Individual investor (single or joint applicants)
i.
ii.
Completed repurchase form.
Photocopy of identity card, birth certificate (if joint applicant is a minor) or passport.
(b) Corporate investors
i.
ii.
Completed repurchase form.
Board resolution or any other necessary authorisation (if necessary).
Partial repurchase of Units is permitted provided the applicable minimum holding is maintained for the Fund. There is no restriction on
frequency of repurchase and number of Units a Unit Holder can redeem subject to the applicable minimum holdings.
The Manager may elect not to permit a partial repurchase if the effect thereof would be that the Unit Holder holds less than the minimum
holding applicable.
3. Payment for Repurchase of Units
(i) By cheque
Unit Holders will receive withdrawal proceeds payment by cheque payable to the Unit Holder's or jointholders' names only. The
cheques will be mailed to the address of the Unit Holders based on the application form or as may be subsequently notified in
writing to the Manager.
Any charges incurred such as charges for outstation cheque will be borne by the Unit Holders.
(ii) Transfer to a bank account
Unit Holders may give AMB an instruction in writing to transfer the repurchase proceeds to Unit Holders' nominated local bank
account held in Unit Holders' own name. All bank charges for the transfer will be borne by the Unit Holders. The charge will be
deducted from the repurchase amount before being paid to the Unit Holders relevant bank account.
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Unit Holders are required to provide AMB with the relevant bank account details in order for AMB to proceed with the transfer
request. It is possible for delays in the banking system to occur which are beyond our control. If the funds cannot be transferred,
AMB shall draw a cheque payable to the Unit Holders.
Unit Holders may give AMB instruction in writing to transfer the repurchase proceeds to the Unit Holders' nominated bank account
overseas held in Unit Holders' own name. All bank charges for the transfer will be borne by the Unit Holders. The charge will be
deducted from the repurchase amount before being paid to the Unit Holders’ relevant bank account.
Note: No repurchase proceeds will be paid in cash under any circumstances.
4. Unit Pricing & Cut-off Time for Repurchase of Units
Applications to repurchase Units will be processed on the same Business Day if received by 2.30 p.m. The applicable repurchase price would
be based on the NAV per Unit at the end of the Business Day on which the application to purchase is received by the Manager. Any
application received or deemed to have been received after this cut-off time would be considered as being transacted on the next Business
Day and would be subjected to the Manager’s pricing on the next Business Day.
The Manager will pay the net repurchase proceeds to the Unit Holder or the Unit Holder’s EPF account (where applicable) within 10 days from
the receipt of the request to repurchase provided that all documentation are complete.
In the event of any technical difficulties beyond the Manager’s control or should the redemption request result in the sale of assets which
cannot be liquidated at an appropriate price or on adequate terms and is as such not in the interest of the existing Unit Holders, redemption
monies may be paid at such other period as may be permitted by the relevant authorities from time to time.
CONTACT INFORMATION
1.
For any enquiries and / or complaint (internal dispute resolution), you may contact:
(a)
AMB Client Services via
Tel
: +603-2034 0800
Fax
: +603-2162 5958 / +603-2163 3212
Email
: ambcare@pnb.com.my
Or you may also file your dispute at our premise:
Amanah Mutual Berhad
34th Floor Menara PNB
201-A Jalan Tun Razak
50400 Kuala Lumpur
(b)
Distribution Channels
Please refer to Section 20 of the Master Prospectus for Conventional Funds for details on the appointed Distribution
Channels.
Alternatively, you may also visit AMB’s website at www.ambmutual.com.my
2.
If you are dissatisfied with the outcome of the internal dispute resolution process, please refer your dispute to the Securities
Industries Dispute Resolution Corporation (SIDREC):
(a)
via phone to
: +603-2282 2280
(b)
via fax to
: +603-2282-3855
(c)
via email to
: info@sidrec.com.my
(d)
via letter to
: Securities Industry Dispute Resolution Center (SIDREC)
Unit A-9-1, Level 9, Tower A
Menara UOA Bangsar
No. 5, Jalan Bangsar Utama 1
59000 Kuala Lumpur
3.
You can also direct your complaint to the Securities Commission even if you have initiated a dispute resolution process with
SIDREC. To make a complaint, please contact the SC’s Investor Affairs & Complaints Department:
(a)
via phone to the Aduan Hotline at
: +603-6204 8999
(b)
via fax to
: +603-6204 8991
(c)
via e-mail to
: aduan@seccom.com.my
(d)
via online complaint form available at www.sc.com.my
(e)
via letter to
:Investor Affairs & Complaints Department
Securities Commission Malaysia
3 Persiaran Bukit Kiara
Bukit Kiara
50490 Kuala Lumpur
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APPENDIX : GLOSSARY
“AMB” or “Manager”
Amanah Mutual Berhad (195414-U).
“AMBDTF” or “the Fund”
AMB Dividend Trust Fund
“Currency”
The base currency of the Fund i.e MYR (Malaysian Ringgit)
“Bursa Malaysia”
The Malaysian stock exchange, operated and maintained by Bursa Malaysia Securities Berhad
(635998-W).
“Business Day(s)”
A day on which the Bursa Malaysia is open for trading in securities.
“Deed”
The deed including any supplementary deed between the Manager, the Trustee and the Unit
Holders for the Fund.
“Distribution Channel”
An institution, corporation or an organisation that is appointed by AMB for the purpose of
marketing and distributing the Fund inside and outside Malaysia as allowed by the applicable
laws. Details are provided in Master Prospectus Conventional dated 17th September 2013 on
Section 20 page 171.
“EPF”
Employees Provident Fund.
“External Investment Manager or
EIM”
The external investment manager of the fund, Hwang Investment Management Berhad
(429786-T)
“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.
“Investment Committee”
The Investment Committee of the respective Fund which is primarily responsible for
formulating, implementing and monitoring the investment management strategies of the Funds
in accordance with the respective investment objectives of the Fund.
“IUTA”
Any Institutional Unit Trust Advisers, which is an institution, a corporation or an organization
that is registered with the Federation of Investment Managers Malaysia (FiMM) or other
regulated bodies in respective country in accordance with their guidelines to distribute the Units.
“NAV”
Net asset value.
“NAV of the Fund”
The NAV of the Fund is determined by deducting the value of all the Fund’s liabilities from the
value of all the Fund’s assets, at the Valuation Point. For the purpose of computing the annual
management fee and annual trustee fee, the NAV of the Fund should be inclusive of the
management fee and trustee fee for the relevant day.
“SC” or “Securities Commission”
Securities Commission Malaysia.
“Unit Holder(s)”
A person or persons registered as holder(s) of Units of any Fund 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
Fund is calculated. Under normal circumstances, only one (1) valuation is conducted on each
Business Day. At the close of Bursa Malaysia if Fund has foreign investments, the valuation of
the Fund will be conducted after the close of business of Bursa Malaysia for the relevant day,
as certain foreign markets in which the Fund may invest in have yet to close due to the
different time zones of these countries. As such, the Valuation Point will thus be after the close
of Bursa Malaysia but not later than 9.00 a.m. (or any other such time as may be permitted by
the relevant authorities from time to time) on the following day in which the Manager is open for
business.