TA Investment
A Member of the TA Group
Master Prospectus
This Master Prospectus encompasses the following unit trust funds:
TA Growth Fund *27 June 1996
TA South East Asia Equity Fund *7 November 2005
TA Comet Fund *20 September 1999
TA Global Asset Allocator Fund *17 May 2006
TA Islamic Fund *6 April 2001
TA Asia Pacific Islamic Balanced Fund *6 October 2006
TA Income Fund *14 March 2002
TA European Equity Fund *5 February 2007
TA Small Cap Fund *22 December 2003
TA Global Utilities Fund *26 June 2007
TA High Growth Fund *25 May 2004
TA Dana Fokus *19 March 2008
TA Dana OptiMix *31 December 2004
TA All-Cycle Commodities Income Fund *2 March 2009
TA CashPLUS Fund *2 June 2005
TA BRIC & Emerging Markets Fund *5 January 2010
TA Islamic CashPLUS Fund *2 June 2005
* Date of Constitution
TA INVESTMENT MANAGEMENT BERHAD (340588-T)
A Member of the TA Group
TRUSTEES
BHLB Trustee Berhad (313031-A) • HSBC (Malaysia) Trustee Berhad (1281-T) • Mayban Trustees Berhad (5004-P) • Universal Trustee (Malaysia) Berhad (17540-D)
This Master Prospectus is dated 7 November 2010 and expires on 6 November 2011. This Master Prospectus shall hereafter supersede and replace the Master Prospectus
dated 7 November 2009 and the Prospectus of TA BRIC and Emerging Markets Fund dated 25 February 2010.
INVESTORS ARE ADVISED TO READ AND UNDERSTAND THE CONTENTS OF THE MASTER PROSPECTUS. IF IN DOUBT, PLEASE CONSULT A PROFESSIONAL ADVISER. FOR MORE
INFORMATION CONCERNING CERTAIN RISK FACTORS WHICH SHOULD BE CONSIDERED BY PROSPECTIVE INVESTORS, SEE “RISK FACTORS” COMMENCING ON PAGE 20.
Preface
Message From the CEO
Dear Investors,
We, TA Investment Management Berhad (“TAIM”) are very pleased to present to you our latest Master
Prospectus for the Funds of:
1.
TA Growth Fund
2.
TA Comet Fund
3.
TA Islamic Fund
4.
TA Income Fund
5.
TA Small Cap Fund
6.
TA High Growth Fund
7.
TA Dana OptiMix
8.
TA CashPLUS Fund
9.
TA Islamic CashPLUS Fund
10. TA South East Asia Equity Fund
11. TA Global Asset Allocator Fund
12. TA Asia Pacific Islamic Balanced Fund
13. TA European Equity Fund
14. TA Global Utilities Fund
15. TA Dana Fokus
16. TA All-Cycle Commodities Income Fund
17. TA BRIC and Emerging Markets Fund
You may refer to pages 10 to 19 of the Key Data section for a better understanding of the objective and key
strategies of each of the Funds, risks of investing in the Funds, profile of investors suitable to invest in the
Funds and fees and charges payable when investing in the Funds. Additionally, to help you in your decision
on the Fund that is most compatible with your personal investment temperament and long term financial
goals.
Units of the Funds can be bought from our unit trust consultants who are registered with the Federation of
Investment Managers Malaysia or our Institutional Unit Trust Advisers who may provide assistance when
you have any enquiries or may need to perform any transaction with us. Please refer to the Corporate
Directory for the relevant contact details.
Thank You.
Yours sincerely
For TA INVESTMENT MANAGEMENT BERHAD
WONG MIEN
Chief Executive Officer
i
RESPONSIBILITY STATEMENT
This Master Prospectus has been reviewed and approved by the directors of TA Investment Management Berhad
and they collectively and individually accepted full responsibility for the accuracy of all information. Having made all
reasonable enquiries, they confirmed to the best of their knowledge and belief, there were no false or misleading
statements or omission of other facts which would make any statement in this Prospectus false or misleading.
Choo Swee Kee
Dr Wong Hong Meng
Rahmah Mahmood
STATEMENT 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 Prospectus has been registered with the
Securities Commission.
The approval and registration of this Prospectus should not be taken as an indication that the Securities
Commission recommends the Fund or assumes responsibility for the correctness of any statement made or
opinion or report expressed in this Prospectus.
The Securities Commission is not liable for any non-disclosure on the part of the Manager responsible for the
management of the Fund and takes no responsibility for the contents of this Prospectus. The Securities
Commission makes no representation on the accuracy or completeness of this Prospectus, and expressly
disclaims any liability whatsoever arising from or in reliance upon the whole or any part of the contents of this
Prospectus.
INVESTORS SHOULD RELY ON THEIR OWN EVALUATION TO ASSESS THE MERITS AND RISKS OF THE
INVESTMENTS. IN CONSIDERING THE INVESTMENTS, INVESTORS WHO ARE IN DOUBT AS TO THE
ACTION TO BE TAKEN SHOULD CONSULT THEIR PROFESSIONAL ADVISERS IMMEDIATELY.
This Prospectus contains relevant information about the Fund and should be kept for future reference.
No units will be issued or sold based on this Prospectus later than one year after the date of this Prospectus.
Investors are advised to note that recourse for false or misleading statements or acts made in connection with the
Prospectus is directly available through sections 248, 249 and 357 of the Capital Markets And Services Act 2007.
While it is the duty of the Manager to ensure the Fund is being correctly valued or priced, the Manager cannot be
held liable for any error in prices published in the newspapers and the websites of our distributors for the Fund.
Pursuant to the Securities Commission Guidelines, where there is incorrect valuation or pricing of units, the
Manager will take immediate remedial action to rectify the error, which extends to reimbursement of money by the
Manager to the Fund and/or to the Unitholders and/or to the former Unitholders; or by the Fund to the Manager.
Rectification need not be extended to any reimbursement where it appears to the Trustee that the incorrect pricing
is of minimal significance.
While it is the duty of the Manager to ensure that all comments given to the media is accurate and true at the time
the comments were given, misquotation may still occur either by the media or third parties, which is out of the
Manager’s control. In such situation, TA Investment Management Berhad and its employees hold no responsibility
for any claims and liabilities due to the misquotation by the media and/or third parties, and are under no obligation
to fulfil any expectation or demand in relation to the misquoted statements.
The distribution of this Prospectus and offering, purchase, sale or transfer of units of the Funds in certain
jurisdictions may be restricted by law. In these jurisdictions, other than Malaysia, the Manager has not applied to
allow distribution of this Prospectus or units of the Funds. Therefore, this Prospectus does not constitute an offer or
invitation to purchase units of the Funds in any jurisdiction in which such offer or invitation would be unlawful.
Investors should be aware that for investments of our Fund made via any of our IUTA, where applicable, any
investment transactions are subject to the terms and conditions of the IUTA.
TA Islamic Fund, TA Dana OptiMix, TA Islamic CashPLUS Fund, TA Asia Pacific Islamic Balanced Fund, TA Dana
Fokus and TA BRIC and Emerging Markets Fund have been certified as being Shariah compliant by the Shariah
adviser appointed for the Funds.
ii
CONTENTS
Page
3
1. GLOSSARY
2. CORPORATE DIRECTORY
6
3. KEY DATA
10
3.1
FUND INFORMATION
10
3.2
FEES AND CHARGES
16
3.3
TRANSACTIONS
18
3.4
DISTRIBUTION POLICY
18
3.5
DEEDS
19
20
4. RISK FACTORS
4.1
GENERAL RISKS
20
4.2
SPECIFIC RISKS OF THE FUNDS
21
26
5. DETAILED INFORMATION ON THE FUNDS
5.1
INVESTMENT POLICY
26
5.2
INVESTMENT STRATEGY FOR EQUITY INVESTMENTS
26
5.3
INVESTMENT STRATEGY FOR FIXED INCOME INVESTMENTS
26
5.4
INVESTMENT STRATEGY FOR FUTURES CONTRACTS INVESTMENTS
26
5.5
INVESTMENT STRATEGY FOR COLLECTIVE INVESTMENT SCHEMES
27
5.6
INVESTMENT STRATEGY FOR WARRANTS INVESTMENTS
27
5.7
INVESTMENT STRATEGY FOR FOREIGN INVESTMENTS
27
5.8
INVESTMENT STRATEGY FOR STRUCTURED PRODUCTS AND OPTIONS
27
5.9
SHARIAH INVESTMENT GUIDELINES
27
5.10
TA GROWTH FUND
29
5.11
TA COMET FUND
30
5.12
TA ISLAMIC FUND
31
5.13
TA INCOME FUND
32
5.14
TA SMALL CAP FUND
33
5.15
TA HIGH GROWTH FUND
34
5.16
TA DANA OPTIMIX
35
5.17
TA CASHPLUS FUND
36
5.18
TA ISLAMIC CASHPLUS FUND
37
5.19
TA SOUTH EAST ASIA EQUITY FUND
39
5.20
TA GLOBAL ASSET ALLOCATOR FUND
40
5.21
TA ASIA PACIFIC ISLAMIC BALANCED FUND
42
5.22
TA EUROPEAN EQUITY FUND
43
5.23
TA GLOBAL UTILITIES FUND
45
5.24
TA DANA FOKUS
50
5.25
TA ALL-CYCLE COMMODITIES INCOME FUND
52
5.26
TA BRIC & EMERGING MARKETS FUND
54
5.27
INVESTMENT RESTRICTIONS AND LIMITS
57
5.28
RISK MANAGEMENT STRATEGIES
60
5.29
VALUATIONS FOR ALL FUNDS
61
5.30
CLEANSING/PURIFICATION PROCESS FOR TAIF, TADO, TAICP, TAIB, TADF AND TABRIC (“THE FUND”)
62
64
6. PERFORMANCE OF THE FUNDS
6.1
TA GROWTH FUND
64
6.2
TA COMET FUND
65
6.3
TA ISLAMIC FUND
66
6.4
TA INCOME FUND
68
6.5
TA SMALL CAP FUND
69
6.6
TA HIGH GROWTH FUND
70
6.7
TA DANA OPTIMIX
72
6.8
TA CASHPLUS FUND
73
6.9
TA ISLAMIC CASHPLUS FUND
74
6.10
TA SOUTH EAST ASIA EQUITY FUND
75
6.11
TA GLOBAL ASSET ALLOCATOR FUND
76
6.12
TA ASIA PACIFIC ISLAMIC BALANCED FUND
78
6.13
TA EUROPEAN EQUITY FUND
79
6.14
TA GLOBAL UTILITIES FUND
80
6.15
TA DANA FOKUS
81
6.16
TA ALL-CYCLE COMMODITIES INCOME FUND
82
84
7. FINANCIAL HIGHLIGHTS OF THE FUNDS
1
8. UNAUDITED FINANCIAL HIGHLIGHTS
99
9. FEES, CHARGES & EXPENSES
101
9.1
CHARGES DIRECTLY INCURRED ON SALE AND REPURCHASE OF UNITS
101
9.2
CHARGES INDIRECTLY INCURRED ON SALE AND REPURCHASE OF UNITS
102
9.3
TOTAL ANNUAL EXPENSES INCURRED BY THE FUNDS IN THE PRECEEDING YEAR
104
105
10. TRANSACTION INFORMATION
10.1
PRICING POLICY
105
10.2
WHAT DO I NEED TO CONSIDER BEFORE INVESTING?
107
10.3
APPLICATION AND REDEMPTION
107
10.4
SWITCHING
109
10.5
TRANSFER OF UNITS
109
10.6
COOLING-OFF PERIOD
109
10.7
MODE OF DISTRIBUTION
110
10.8
PAYMENT METHODS
110
10.9
HOW TO BUY, SELL, SWITCH AND TRANSFER
111
10.10
ADDITIONAL INFORMATION
112
11. THE KEY PEOPLE BEHIND TA INVESTMENT
113
11.1
THE MANAGER
113
11.2
FUNCTIONS AND RESPONSIBILITIES OF THE MANAGER
113
11.3
SUMMARY OF TAIM’S FINANCIAL POSITION
113
11.4
BOARD OF DIRECTORS
113
11.5
KEY MANAGEMENT PERSONNEL
114
11.6
INVESTMENT COMMITTEE
115
11.7
INVESTMENT TEAM
115
11.8
THE SHARIAH ADVISER
116
11.9
MATERIAL LITIGATIONS AND ARBITRATIONS
117
11.10
POLICY ON MONEY LAUNDERING
117
11.11
DELEGATION FUNCTION
117
119
12. THE EXTERNAL INVESTMENT MANAGERS
12.1
LION GLOBAL INVESTORS LIMITED
119
12.2
MAIN FUNCTIONS OF LION GLOBAL INVESTORS LIMITED
119
12.3
KEY PERSONNEL OF LION GLOBAL INVESTORS LIMITED
119
12.4
OPUS ASSET MANAGEMENT SDN BHD
121
12.5
MAIN FUNCTIONS OF OPUS ASSET MANAGEMENT SDN BHD
121
12.6
KEY PERSONNEL OF OPUS ASSET MANAGEMENT SDN BHD
121
122
13. THE TRUSTEES
13.1
DUTIES AND RESPONSIBILITIES
122
13.2
BHLB TRUSTEE BERHAD
122
13.3
UNIVERSAL TRUSTEE (MALAYSIA) BERHAD
123
13.4
HSBC (MALAYSIA) TRUSTEE BERHAD
125
13.5
MAYBAN TRUSTEES BERHAD
128
130
14. SALIENT TERMS OF THE DEEDS
14.1
RIGHTS AND LIABILITIES AS A UNIT HOLDER
130
14.2
MAXIMUM FEES AND CHARGES PERMITTED
130
14.3
PROCEDURES TO INCREASE THE DIRECT AND INDIRECT FEES AND CHARGES
132
14.4
PERMITTED EXPENSES
132
14.5
THE MANAGER’S RIGHT TO RETIRE
133
14.6
THE MANAGER’S POWERS TO REMOVE / REPLACE TRUSTEE
133
14.7
TRUSTEE’S RIGHT TO RETIRE
134
14.8
POWER OF TRUSTEE TO REMOVE OR REPLACE THE MANAGER
134
14.9
TERMINATION OF THE FUND
134
14.10
MEETINGS OF UNIT HOLDERS
135
14.11
QUORUM REQUIRED FOR CONVENING A UNIT HOLDERS MEETING
136
14.12
UNIT HOLDERS MEETING CONVENED BY UNIT HOLDERS
136
14.13
UNIT HOLDERS MEETING CONVENED BY MANAGER OR TRUSTEE
136
15. TAXATION ADVISER’S LETTER
137
16. CONFLICTS AND RELATED PARTY TRANSACTIONS
140
17. CONSENTS
141
18. DOCUMENTS AVAILABLE FOR INSPECTION
141
2
1. GLOSSARY
In this Master Prospectus, the following words or abbreviations shall have the following meaning unless otherwise stated:
ADRs
American Depository Receipts. A negotiable certificate issued by a U.S. bank representing a
specified number of shares (or one share) in a foreign stock that is traded on a U.S. exchange.
ADRs are denominated in U.S. dollars, with the underlying security held by a U.S. financial
institution overseas. ADRs help to reduce administration and duty costs that would otherwise be
levied on each transaction.
BTB
BHLB Trustee Berhad
BNM
Bank Negara Malaysia
BRIC Countries
Countries including Brazil, Russia, India and the People’s Republic of China
Bursa Malaysia
The stock exchange managed or operated by Bursa Malaysia Securities Berhad
Business Day
A day on which the Bursa Malaysia is open for trading
CMSA or the Act
Capital Markets and Services Act 2007
CYD Index
CYD Market Neutral Plus 5 Total Return Index
Deed
The deeds including any supplemental deeds made between TAIM, the Trustees and the Unit
Holders of the Funds, agreeing to be bound by the provisions of the respective deeds
EPF
Employees’ Provident Fund
ETF
Exchange Traded Fund
Feeder Fund
A unit trust fund that invests all its assets in a single collective investment scheme
FiMM
Federation of Investment Managers Malaysia
FTSE World Europe Index
Financial Times & the London Stock Exchange World Europe Index
Fund(s)
TA Growth Fund, TA Comet Fund, TA Islamic Fund, TA Income Fund, TA Small Cap Fund, TA
High Growth Fund, TA Dana OptiMix , TA CashPLUS Fund, TA Islamic CashPLUS Fund, TA
South East Asia Equity Fund, TA Global Asset Allocator Fund, TA Asia Pacific Islamic Balanced
Fund, TA European Equity Fund, TA Global Utilities Fund, TA Dana Fokus, TA All-Cycle
Commodities Income Fund, and TA BRIC & Emerging Markets Fund referred to individually as
“the Fund” and collectively as “the Funds”
Fund-of-Funds
A unit trust fund that invests all its assets in other collective investment schemes
GDRs
Global Depository Receipts. A bank certificate issued in more than one country for shares in a
foreign company. The shares are held by a foreign branch of an international bank. The shares
trade as domestic shares, but are offered for sale globally through the various bank branches.
Guidelines
Guidelines on Unit Trust Funds issued by the SC as may be amended from time to time
HSBC Trustee
HSBC (Malaysia) Trustee Berhad
IBFIM
Islamic Banking and Finance Institute Malaysia Sdn Bhd
IOSCO
International Organisation of Securities Commissions
IUTA
Institutional Unit Trust Advisers
Initial Offer Period
The period of 21 days from the launch date of the Fund
Launch Date
The date on which the Fund is launched
Lion Global Investors
Lion Global Investors Limited
Long term or longer term
Typically, a period of 5 years and above
Management Expense
Ratio
Means the ratio of the sum of fees deducted directly from a unit trust fund (including
management fee, trustee fee and any other fees) and recovered expenses of a unit trust fund
(including the costs of printing, stationary and postage) to the average value of the unit trust
fund calculated on a daily basis, ie.
MER
=
Fees + Recoverable expenses
Average NAV of the fund calculated on a daily basis
3
x
100%
This ratio will inform you of the total expenses incurred by the Fund during the year as
compared to its average NAV. A lower MER indicates the effectiveness of the Manager in
managing the expenses of the Fund.
Medium term
Typically, a period of between 3 to 5 years
Money Market Fund
A unit trust fund that invests primarily in short-term debentures, short-term money market
instruments and placement in short-term deposits
MSCI
Morgan Stanley Capital International
MSCI World Utilities Index
Morgan Stanley Capital International World Utilities Index – Net Index
MTB
Mayban Trustees Berhad
Net Asset Value or NAV
NAV of the Fund is the total value of all the Fund’s assets less the total value of all its 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.
NAV per unit
NAV of the Fund divided by the number of Units in circulation, at the same valuation point
OpusAM
Opus Asset Management Sdn Bhd
OTC or Over-The-Counter
OTC trades refer to the trading of financial instruments directly between two parties without
going through the securities exchange. OTC trades are negotiable and both parties agree upon
the particular of the trade prior to settlement in the future
Penalty Fee
Repurchase Charge as provided under the Deed
Portfolio Turnover Ratio or
PTR
Means the ratio of the average sum of acquisitions and disposals of the unit trust fund for the
year to the average value of the unit trust fund for the year calculated on a daily basis, ie.
PTR
=
[Total acquisitions & disposals of the fund for the year] / 2
Average NAV of the fund for the year calculated on a daily basis
The PTR ratio indicates whether the Fund buys and sells securities frequently or whether it
takes a longer view in its investment strategy. A portfolio turnover rate of 1 means that the
average holding period of securities purchases is one year. A high PTR indicates that the Fund
buys and sells securities very often.
RAM
RAM Rating Services Berhad
RAM Quant Shop MGS
Bond Short 1-3 Year
RAM Rating Services Berhad Quant Shop Malaysia Government Securities Bond Short 1-3
Year
Reinvestment Date
The date of the reinvestment of income distribution on the 3rd Business Day after the date of the
declaration of any income distribution
Repurchase Price
The price payable to the Unit Holder pursuant to a repurchase of Units in a Fund by a Unit
Holder.
REITs
Real Estate Investment Trusts
RM and sen
Ringgit Malaysia and sen respectively
SACSC
Shariah Advisory Council of the Securities Commission
SC
Securities Commission of Malaysia established under the Securities Commission Act, 1993
Selling Price
The price payable by the investors for the purchase of a unit in a Fund.
Shariah
Islamic Law comprising the whole body of rulings pertaining to human conducts derived from
the primary and secondary sources of the Shariah. The primary sources are the Quran, the
Sunnah, Ijma’ and Qiyas while the secondary ones are those established sources such as
Maslahah, Istihsan, Istishab, ‘Uruf and Sadd Zara’ie
Shariah requirements
Phrase or expression which generally means making sure that any human conduct must not
involve any prohibition and that in performing that conduct all the essential elements that make
up the conduct must be present and each essential element must meet all the necessary
conditions required by the Shariah for that element
Structured Product
A structured product is generally a pre-packaged investment strategy that are derived from and/
or based on a single security or securities, a basket of stocks, an index, a commodity, debt
issuance and/or a foreign currency, amongst other things and are generally created to meet
4
specific needs that cannot be met from the standardized financial instruments available in the
market
Sukuk
A document or certificate, documenting the undivided pro-rated ownership of underlying assets.
The sak (singular of sukuk) is freely traded at par, premium or discount. In Malaysia, the term
sukuk is used for fixed income securities which comply with Shariah requirements. However, it
is normally used together with Shariah contracts applied in the structure, such as Bai Bithaman
Ajil, murabahah and istisna’ for underlying transactions based on indebtedness, or musyarakah
and mudharabah for underlying transactions based on partnership
S&P
Standard & Poors
SGI Index
SGI Smart Market Neutral Commodity Index
TAACCI
TA All-Cycle Commodities Income Fund
TABRIC
TA BRIC & Emerging Markets Fund
TACF
TA Comet Fund
TACP
TA CashPLUS Fund
TADO
TA Dana OptiMix
TADF
TA Dana Fokus
TAE
TA Enterprise Berhad
TAEURO
TA European Equity Fund
TAGAAF
TA Global Asset Allocator Fund
TAGF
TA Growth Fund
TAHGF
TA High Growth Fund
TAIB
TA Asia Pacific Islamic Balanced Fund
TAICP
TA Islamic CashPLUS Fund
TAIF
TA Islamic Fund
Target Fund
The collective investment scheme in which a Feeder Fund invests in
TASEA
TA South East Asia Equity Fund
TASF
TA Small Cap Fund
TASH
TA Securities Holdings Berhad
TAUF
TA Global Utilities Fund
TAIM or Manager or
Management Company
TA Investment Management Berhad
TIF
TA Income Fund
Trustees
BTB, HSBC Trustee, MTB and/or UTMB and “Trustees” means any one of them
Unit Holder
A person for the time being who is registered pursuant to the Deeds as a holder of Units of the
Funds, including persons jointly so registered
Unit or Unit in circulation
A Unit created and fully paid for and which has not been cancelled
USD
United States Dollar
UTMB
Universal Trustee (Malaysia) Berhad
ZNIDS
Zero-coupon Negotiable Instruments of Deposits
5
2. CORPORATE DIRECTORY
MANAGER:
TA Investment Management
Berhad (340588-T)
Registered Office
34th Floor, Menara TA One
22 Jalan P. Ramlee
50250 Kuala Lumpur
Head Office
Miri Business Centre
23rd Floor, Menara TA One
22 Jalan P.Ramlee
50250 Kuala Lumpur
1st Floor, Lot 3007
Morsjaya Commercial Centre
Airport Road
98000 Miri Sarawak
Tel: 085-430 415/ 085-439 620
Fax: 085 436 044
E-mail: tautmbmyy@pd.jaring.my
Tel: 603-2031 6603 Fax: 603-2031 4479
Toll Free: 1-800-38-7147
E-Mail: investor.taim@ta.com.my
Website: www.tainvest.com.my
Kota Kinabalu Business Centre
Kuching Business Centre
Penang Business Centre
Unit 4-0-14 Ground Floor
Block 4 Api-Api Centre
Jalan Centre Point
88000 Kota Kinabalu Sabah
Tel: 088-247 023 / 088-236 023
Fax: 088-248 463
Email: takk@tm.net.my
L204, 1st Floor,
Jalan Tunku Abdul Rahman,
93100 Kuching,
Sarawak
Tel: 082-233 203
Fax: 082-232 203
E-mail: ta203@streamyx.com
54-G
Persiaran Bayan Indah,
Bayan Bay, Sg Nibong,
11900 Penang.
Tel: 04-6460560
Fax: 04-6460576
Board Of Directors (Manager)
Investment Committee Members
1. Choo Swee Kee ( Non-Independent)
1. Choo Swee Kee (Non – Independent)
2. Yaw Chun Soon (Non-Independent)
2. Dr Wong Hong Meng (Independent)
3. Dr Wong Hong Meng (Independent)
3. Rahmah Binti Mahmood (Independent)
4. Tay Kian Chuan (Independent)
5. Nor Asma Mohamed (Non Independent – only for TAIF,
TADO, TAICP, TAIB, TADF and TABRIC)
6. Attan Akmar Masbah (Non Independent – only for TAIF,
TADO, TAICP, TAIB, TADF and TABRIC)
Manager’s Delegate (Fund Administrator for TASEA)
Citibank Berhad
External Investment Manager for TASEA
Lion Global Investors Limited
Business Address:
Citibank Berhad
Level 45, Menara Citibank
165, Jln Ampang
50450 Kuala Lumpur.
Tel: 03-2383 0000 Fax: 03-2383 6666
Business Address:
One George Street #08-01
Singapore 049145
Tel: 65-6417 6800 Fax: 65-6417 6806
Website: www.lookforlion.com
External Investment Manager for TABRIC’s
Portfolio
Opus Asset Management Sdn Bhd (414625-T)
Sukuk
Business Address:
B-19-2 Northpoint Offices, Mid Valley City
No.1, Medan Syed Putra Utara
59200 Kuala Lumpur
Tel: +603 2288 8882
Fax: +603 2288 8889
Website: http://www.opusasset.com
6
TRUSTEES:
BHLB Trustee Berhad (Co. No. : 313031-A)
HSBC (Malaysia) Trustee Berhad ( Co. No. :1281-T)
Registered Office
5th Floor, Bangunan CIMB
Jalan Semantan, Damansara Heights
50490 Kuala Lumpur
Tel : 603-2084 8888 Fax : 603-2093 9688
Web :http://www.cimb.com
Suite 901, 9th Floor,
Wisma Hamzah-Kwong Hing,
No.1, Lebuh Ampang,
50100 Kuala Lumpur.
Tel: 603-2074 3200 Fax: 603-2078 0145
Business Office
Level 7, Wisma Amanah Raya Berhad,
Jalan Semantan, Damansara Heights,
50490 Kuala Lumpur
Tel: 603-2084 8888 Fax: 603-2095 5473
Mayban Trustees Berhad (Co. No. : 5004-P)
Universal Trustee (Malaysia) Berhad (Co. No. : 17540 D)
34th Floor, Menara Maybank,
100 Jalan Tun Perak,
50050 Kuala Lumpur.
Tel: 603-2078 8363 Fax: 603-2070 9387
Website: www.maybank2u.com.my
E-mail: mtb@maybank.com.my
No.1 Jalan Ampang (3rd Floor)
50450 Kuala Lumpur
Tel: 603-2070 8050 Fax: 603-2031 8715
BHLB Trustee’s Delegate
HSBC Trustee’s Delegate
CIMB Group Nominees (Tempatan) Sdn Bhd (274740-T)
Registered Office
5th Floor, Bangunan CIMB
Jalan Semantan, Damansara Heights
50490 Kuala Lumpur
Tel : 603-2084 8888 Fax : 603-2093 9688
Web :http://www.cimb.com
Business Address:
The Hongkong And Shanghai Banking Corporation Limited
(As Custodian) and assets held through HSBC Nominees
(Tempatan) Sdn Bhd (Co. No. 2588454-D)
No.2, Leboh Ampang 50100 Kuala Lumpur
Tel: 603-2070 044 Fax: 603-2072 9787
Function: Local Custodian
Business Address:
Level 7, Wisma Amanah Raya Berhad,
Jalan Semantan, Damansara Heights,
50490 Kuala Lumpur
Tel: 603-2084 8888 Fax: 603-2093 3720
Function: Custodian
HSBC Trustee’s Delegate
Universal Trustee’s Delegate
Business Address:
HSBC Institutional Trust Services ( Asia) Limited
6th Floor, Tower One
HSBC Centre
N0.1 Sham Mong Road
Kowloon, Hong Kong
Tel: 852-2533 6333 Fax: 852-2869 6120
Function: Global Custodian
Business Address:
United Overseas Bank (Malaysia) Bhd (Co. No. : 271809K)
Level 9, Menara UOB
Jalan Raja Laut
50350 Kuala Lumpur
Tel: 03-2772 6628 Fax: 03-2694 8102
Website: www.uob.com.my
E-mail: custody@uob.com.my
Function: Local Custodian
7
CIMB Group Nominees (Tempatan) Sdn Bhd’s SubCustodian
Citibank, N.A. Singapore Branch
Shariah Adviser (for TAIF, TADO, TAICP, TAIB, TADF and
TABRIC)
Islamic Banking and Finance Institute Malaysia Sdn. Bhd.
(340040-M)
Registered Office
3 Temasek Avenue
#12-00 Centennial Tower
Singapore 39190
Tel :65-6328 5095
Website:http://www.citibank.com
Business Address:
Citibank N.A Singapore
3 Temasek Avenue,
#16-00 Centennial Tower Singapore 039190
Tel: 65 – 6328 5095
Function: Sub-Custodian of CIMB Group
(Tempatan) Sdn Bhd
Office Address:
3rd Floor, Dataran Kewangan Darul Takaful
Jalan Sultan Sulaiman
50000 Kuala Lumpur
Tel: 603-2031 1010 Fax: 603-2078 5250
Website: www.ibfim.com
Nominees
Company Secretary
Registered Address:
Khoo Poh Kim @ Kimmy (LS04542)
34th Floor, Menara TA One
22 Jalan P. Ramlee
50250 Kuala Lumpur
Banker
Malayan Banking Berhad
Ground Floor, Wisma Genting
Jalan Sultan Ismail
50250 Kuala Lumpur
Tel: 603-2163 5051/5130 Fax: 603-2162 0184
Auditors
Ernst & Young
Level 23A, Menara Milenium
Jalan Damanlela
Pusat Bandar Damansara
50490 Kuala Lumpur
Tel: 603-7495 8000 Fax: 603-2095 9076
Tax Adviser
KPMG Tax Services Sdn Bhd
Level 10, KPMG Tower
8, First Avenue, Bandar Utama
47800 Petaling Jaya
Selangor Darul Ehsan
Tel: 603-2095 3388 Fax: 603-2095 2177
FiMM
Federation of Investment Managers Malaysia
19-07-3, 7th Floor, PNB Damansara ,
19, Lorong Dungun,
Damansara Heights,
50490 Kuala Lumpur.
Tel : 603-2093 2600 Fax : 603-2093 7200
8
INSTITUTIONAL UNIT TRUST ADVISERS:
AmBank (M) Berhad
Level 34, Menara AmBank
8 Jalan Yap Kwan Seng
50450 Kuala Lumpur
Tel: 603-2167 3000
Am Financial Services
Level 30, Menara Ambank
No. 8, Jln Yap Kwan Seng
50450 Kuala Lumpur.
Tel: 603-21673000 ext. 82142
ASM Investment Services Berhad
Ground Floor, Wisma ASMB
No. 1A, Jalan Lumut
50400 Kuala Lumpur
Tel: 603-4041 7199
CIMB Bank Berhad
Level 8, Menara Bumiputra-Commerce
11 Jalan Raja Laut
50350 Kuala Lumpur
Tel: 603-2087 3000
CIMB Investment Bank Berhad
Lot 7-01 Level 7
Tower Block Menara Millenium
8, Jalan Damanlela, Bukit Damansara
50490 Kuala Lumpur
Tel: 603-2723 8688
CIMB Wealth Advisors Berhad
50, 52 & 54 Jalan SS 21/39
Damansara Utama
47400 Petaling Jaya
Selangor Darul Ehsan
Tel: 603-7712 2888
EON Bank Berhad
12th Floor, Menara EON Bank
288 Jalan Raja Laut
50350 Kuala Lumpur
Tel: 603-2612 8888
Hong Leong Bank Berhad
Level 1, Wisma Hong Leong
18, Jalan Perak
50450 Kuala Lumpur
Wilayah Persekutuan
Tel: 603-2164 2525
iFAST Corporation Pte Ltd
Level 28, Menara Standard Chartered
No 30, Jalan Sultan Ismail
50250 Kuala Lumpur
Tel: 603-2149 0508
Malacca Securities Sdn Bhd
No. 1, 3 & 5 Jalan PPM 9
Plaza Pandan Malim Business Park
75250 Melaka, Malaysia
Tel: 606 -337 1533
Malayan Banking Berhad
Menara Maybank
100, Jalan Tun Perak
50050 Kuala Lumpur
Tel: 03-20708833
OCBC Bank (Malaysia) Berhad
Menara OCBC
18 Jalan Tun Perak
50050 Kuala Lumpur
Tel: 1-300-88-5000
Phillip Mutual Berhad
13-2-7, Megan Avenue II
12, Jalan Yap Kwan Seng
50450 Kuala Lumpur
Tel: 603-2715 9802
RHB Bank Berhad
Tower Two & Three
RHB Centre, Jalan Tun Razak
50400 Kuala Lumpur
Tel: 03-9287 8888
Standard Chartered Bank Malaysia Berhad
Level 8, Menara Standard Chartered
30 Jln Sultan Ismail
50250 Kuala Lumpur.
Tel: 603-2117 7777
9
3. KEY DATA
This section is only a summary of the salient information about the Funds and that investors should read and
understand the whole prospectus before making investment decisions.
3.1
FUND INFORMATION
Fund
Name
Launch
Date
Category
of Fund
Type of
Fund
Manager/
External
Investment
Manager
Trustee
Approved
Fund Size
(Million
units)
NAV per
unit as at
30/09/2010
Units in
Circulation
as at
30/09/2010
(Million
units)
TAGF
1 July 1996
Equity
Growth &
Income
TAIM
BTB
350
0.5633
104.77
TACF
1 October
1999
Equity
Growth &
Income
TAIM
BTB
600
0.5418
54.66
TAIF
24 April
2001
Equity
(Islamic)
Growth
TAIM
UTMB
600
0.4999
146.16
TIF
6 May 2002
Balanced
Income
TAIM
UTMB
150
0.4736
19.98
TASF
9 February
2004
Equity
Growth
TAIM
BTB
800
0.4871
43.90
TAHGF
7 June
2004
Equity
High
Growth
TAIM
UTMB
600
0.6303
15.96
TADO
17 January
2005
Mixed
Asset
(Islamic)
Growth &
Income
TAIM
BTB
800
0.4693
95.82
TACP
6 June
2005
Money
Market
Income
TAIM
BTB
600
0.5277
118.26
TAICP
6 June
2005
Money
Market
(Islamic)
Income
TAIM
BTB
600
0.5309
1.28
TASEA
28
November
2005
Equity
Growth &
Income
Lion Global
Investors
BTB
450
0.5085
224.13
TAGAAF
12 June
2006
Fund of
Funds
(Global
Mixed
Asset)
Growth &
Income
TAIM
HSBC
300
0.4601
30.41
TAIB
7
November
2006
Balanced
(Islamic)
Growth &
Income
TAIM
BTB
300
0.4926
27.81
TAEURO
20 March
2007
Fund of
Funds
(European
Equity)
Growth and
Income
TAIM
HSBC
675
0.3021
137.89
TAUF
15 August
2007
Feeder
Fund
(Global
Equity)
Growth and
Income
TAIM
MTB
450
0.2920
101.55
TADF
17 June
2008
Equity
(Islamic)
Growth and
Income
TAIM
UTMB
150
0.5729
38.79
TAACCI
4 May 2009
Fixed
Income
Fund
Income and
Growth
TAIM
HSBC
800
0.2418
219.39
BTB
400
0.5018
19.94
TABRIC
Equity
TAIM
Growth
25
(Islamic)
February
2010
Note: The base currency for all the above Funds is in Ringgit Malaysia.
10
Fund
Name
Fund Objective
TAGF
The Fund aims to
achieve steady income
and capital growth over
the medium to long term
period, to its Unit
Holders, by investing in
the strong economic
growth of the country.
TACF
Investment Strategy
Investor Profile
Specific Risks
Risk
Profile
On average, the Fund
will invest 40%-95% of
its NAV in equities and
the balance will be held
as liquid assets.
§ Market risk
§ Specific stock
risk
§ Interest rate risk
§ Credit risk
Moderate
§ Willing to accept
moderate risk
§ Aiming to achieve higher
returns on their capital
over the medium to long
term period
The Fund aims to
provide a channel for
investors to invest in
low-priced securities
offering good value with
great upside potential
with a view of
diversifying towards
medium-priced
securities and blue chips
as the market moves
higher over the medium
to long term.
Typically,the Fund will
invest 40% to 95% of its
NAV in equities most of
the time with the cash
portion making up the
balance of the portfolio.
§ Market risk
§ Specific stock
risk
§ Interest rate risk
§ Credit risk
High
§ Keen to buy low-priced
securities offering good
value but may not know
which shares to select
§ Requires liquidity but are
willing to invest for the
medium to long term
TAIF
The Fund aims to
achieve steady capital
growth over the medium
to long term period by
investing in a portfolio of
authorised investments
which conforms strictly
to Shariah principles.
Depending on market
conditions, the Fund will
invest 40% to 95% of its
NAV in Shariahcompliant securities with
the balance in sukuk
and Shariah-based
liquid assets.
§ Market risk
§ Specific stock
risk
§ Interest rate risk
§ Credit risk
§ Reclassification
of Shariah
Status Risk
Moderate
§ Wants to invest in stocks
and other approved
instruments that meet
requirements of the
Shariah
§ Requires liquidity but are
willing to invest for the
medium to long term
TIF
The Fund aims to
provide investors with an
alternative longer term
investment that provides
a steady stream of fixedincome and potential
capital gains from
investment in bonds,
money market
instruments and equities
The Fund will adhere to
a balanced asset
allocation approach of
investing up to 60% of
its NAV in equity and
equity related securities
while the balance into
bonds, money market
instruments or in cash.
§
§
§
§
§
Interest rate risk
Credit risk
Liquidity risk
Market risk
Specific stock
risk
Moderate
§ Willing to accept
moderate risk
§ Wants to divest into fixed
income securities at
acceptable level of risk.
TASF
The Fund aims to
achieve higher capital
appreciation by investing
in instruments which
have the potential of
substantial value
appreciation over the
medium to long term
period.
The Fund will invest in
smaller capitalised
companies that are
deemed to have strong
growth potential.
Typically, the equity
exposure will range from
40% to 95% of its NAV.
§ Market risk
§ Specific stock
risk
§ Interest rate risk
§ Credit risk
§ Business risk of
emerging
companies
High
§ Seeks higher capital
appreciation
§ Seeks to participate in a
diversified portfolio of
small companies with
potential growth
§ Has aggressive riskreward appetite
§ Has long term investment
horizon
TAHGF
The Fund aims to
provide investors with
above average capital
growth over the medium
to long-term period by
investing mainly in
companies that offer
higher growth prospects
than the prevailing
economic growth.
The Fund will invest
40% to 95% of its NAV
in equities with the
balance in fixed income
securities, money
market and other liquid
assets.
§ Market risk
§ Liquidity risk
§ Specific stock
risk
§ Credit risk
§ Business risk of
growth
companies
High
§ Prefers consistent capital
returns more than income
over a medium to long
term period
§ Willing to accept a higher
degree of risk in return for
potentially higher
investment gains
11
Fund
Name
Fund Objective
Investment Strategy
Specific Risks
Risk
Profile
Investor Profile
TADO
The Fund aims to
achieve steady capital
gains with consistent
income over the
medium- to long-term by
investing in a diversified
mix of Shariah-approved
instruments.
The Fund will only invest
in Shariah –compliant
equity and equity-related
securities, sukuk and
cash/ Shariah-based
liquid assets. The Fund
will have the flexibility to
invest up to 100% of its
NAV in any of these
assets, depending on
investment market
condition.
§ Market risk
§ Specific stock
risk
§ Interest rate risk
§ Credit risk
§ Reclassification
of Shariah
Status Risk
High
§ Wants to invest in stocks
and other approved
instruments that meet
requirements of the
Shariah
§ Requires liquidity but are
willing to invest for the
medium to long term
TACP
The Fund aims to
provide investors an
avenue to invest in low
risk instruments that
provide reasonable
returns and high level of
liquidity.
The Fund will invest in a
diversified portfolio of
short-term money
market instruments
which have a remaining
maturity period of up to
365 days. The Fund
may also invest up to
10% of its NAV in debt
instruments with longer
remaining maturity
period, which is more
than 365 days but does
not exceed 732 days.
§ Market risk
§ Interest Rate
Risk
§ Issuer Risk
§ Credit/Default
Risk
Low
§ Wants to invest in an
income yielding yet highly
liquid and low risk
portfolio for the short or
medium term
§ Seeks a tax-effective
income stream for excess
funds currently not in use
§ As to position their
money while waiting to
make another investment
TAICP
The Fund aims to
provide investors with an
avenue to invest in low
risk instruments that
provide reasonable
returns and high level of
liquidity which complies
with Shariah
requirements and as
approved by the SACSC
and/or the Shariah
Adviser of the Fund.
The Fund will invest in a
diversified portfolio of
short-term Islamic
money market
instruments which
complies with Shariah
requirements and has a
remaining maturity
period of up to 365 days.
The Fund may also
invest up to 10% of its
NAV in sukuk with
longer remaining
maturity period, which is
more than 365 days but
does not exceed 732
days.
§ Market risk
§ Interest Rate
Risk
§ Issuer Risk
§ Credit/Default
Risk
§ Reclassification
of Shariah
Status Risk
Low
§ Wants to invest in an
income yielding yet highly
liquid and low risk
portfolio for the short or
medium term
§ Seeks a tax-effective
income stream for excess
funds currently not in use
§ As position their money
while waiting to make
another investment
TASEA
The Fund aims to
provide steady income
and long-term capital
growth by investing
primarily in quoted or
listed equities and equity
related instruments
(including REITs) in
South East Asia
markets.
The Fund may invest up
to 100% of its NAV in
South East Asia
markets. There is no
target industry or sector
for the investments of
the Fund.
§
§
§
§
Economic Risk
Market Risk
Currency Risk
Emerging
Market Risk
§ External Fund
Manager Risk
Moderate
to high
§ Understands the risk
associated with investing
in the equities of subregional fund
§ Wants to invest in stocks
and other approved
instruments in South East
Asia
§ Seeks medium to longterm capital growth from
the investments
12
Fund
Name
Fund Objective
Investment Strategy
Specific Risks
Risk
Profile
Investor Profile
Market Risk
Country Risk
Currency Risk
Emerging
Market Risk
Moderate
to high
§ Wants to diversify their
overall investment
portfolio by including
exposure to the foreign
market.
§ Seeks long term capital
appreciation through
exposure to equities, fixed
income securities,
property-related securities
and commodities-related
securities.
TAGAAF
The Fund aims to
provide investors with
long term capital growth
by investing in a
diversified portfolio of
collective investment
schemes or similar
schemes globally that
invests in equities, fixed
income instruments,
property-related
securities and
commodity related
securities.
The Fund will invest at
least 90% of its NAV in
other collective
investment schemes
(including REITs) with
the balance in liquid
assets.
§
§
§
§
TAIB
The Fund aims to
provide steady income
and capital growth over
the medium to long-term
period by focusing it’s
investment in local and
Asia Pacific companies
and unlisted equities,
equity related securities,
fixed income securities,
participation in mutual
funds and other interests
in collective investment
schemes which are
permitted under
Guidelines and complies
with Shariah
requirements.
The Fund will adhere to
a balanced asset
allocation approach of
investing 40% to 60% of
its NAV in Shariahcompliant equity and
equity related securities
with the balance into
sukuk and cash or
Islamic money market
accounts.
§
§
§
§
Market Risk
Country Risk
Currency Risk
Interest Rate
Risk
§ Emerging
Market Risk
§ Reclassification
of Shariah
Status Risk
Moderate
§ Wants to diversify their
overall investment
portfolio by including
exposure to the foreign
market
§ Seeks long term capital
appreciation through
exposure to Shariahcompliant equities and
sukuk.
TAEURO
The Fund aims to seek
steady income and
capital growth over
medium to long term
through investments in a
diversified portfolio of
local and/or foreign
equity funds, REITs and
ETFs that invest in
Europe.
The Fund will invest at
least 90% of its NAV in
collective investment
schemes at all times
with the balance in liquid
assets.
§
§
§
§
Market Risk
Country Risk
Currency Risk
Interest Rate
Risk
§ Emerging
Market Risk
§ Credit Risk
§ Risk associated
with underlying
Funds
Moderate
to high
§ Seeks above market yield
or medium to long term
capital appreciation
through the investments
in European equity
markets.
§ Seeks high yields over the
long term and prepared to
accept fluctuations in
capital values.
TAUF
The Fund aims to
achieve total return over
a medium to long term
period through
investments in a
collective investment
scheme, which invests
in utilities securities
globally.
The Fund will invest a
minimum of 95% of its
NAV in the Target Fund
with the balance in liquid
assets. The Target Fund
is the Luxembourg
based BNP PARIBAS
L1 Equity World Utilities
(formerly known as
Fortis L Fund Equity
Utilities World Fund),
which seeks to invest
into companies that
provide basic utilities.
§
§
§
§
§
Market Risk
Country Risk
Currency Risk
Regulatory Risk
Sector
Investment Risk
§ External Fund
Manager’s Risk
Moderate
to high
§ In a convenient way of
gaining exposure to a
specific segment of the
global economy.
§ Seeks medium to longterm total return in their
investments (5 years or
longer).
§ Able to accept the
possibility of moderate
long-term returns in
exchange for potentially
lower risk.
13
Fund
Name
Fund Objective
Investment Strategy
Specific Risks
Risk
Profile
Investor Profile
TADF
The Fund aims to
achieve total return
over the medium to
long-term period by
investing in
a focused portfolio,
mainly equities, that
comply with Shariah
requirements.
The Fund will only invest in
Shariah –compliant equity
and equity-related
securities, sukuk and cash/
Shariah-based liquid
assets. Depending on the
investment condition, the
Shariah-compliant equity
exposure will range from
70% to 95% of its NAV
with the balance in sukuk
and Shariah-based liquid
assets. However the
Shariah-compliant equity
range of the Fund may be
higher or lower depending
on the investment
manager’s assessment of
the equity market. The
Shariah-compliant equity
portion of the portfolio will
comprise up to 28 Shariahcompliant stocks.
§ Market Risk
§ Specific Stock
Risk
§ Liquidity Risk
§ Reclassification of
Shariah Status
Risk
High
§ Want to invest in a
concentrated portfolio of
stocks and other
approved instruments
that meet the Shariah
requirements.
§ Require liquidity but are
willing to invest for the
medium to long term.
§ Have experience with
the risks and rewards of
investments in Shariahcompliant equities.
TAACCI
The Fund seeks to
provide regular
income and to
maximise long-term
capital growth whilst
at the same time aims
to offer stability of
capital at low to
medium risk.
The Fund will primarily
invest into Malaysian fixed
income securities and
money market instruments
to seek regular income and
stability of capital.
§ Market Risk
§ Credit/ Default
Risk
§ Interest Rate Risk
§ Issuer Risk
§ Currency Risk
§ Country Risk
§ Legal Risk
§ Structured
Products or
Options Risk
Low to
Medium
§ Seeks regular income
stream and stable
investment returns
§ Seeks long-term capital
growth
§ Seeks capital stability
§ Wish to have greater
diversification in their
investment portfolios
through exposure to
global investments and
investment strategies or
indices related to
commodities.
Medium
to High
Have a medium to
long-term investment
horizon
§ Have high risk
tolerance
§ Want to diversify their
overall investment
portfolio by including
exposure to emerging
markets
§ Seek medium to longterm capital appreciation
through a diversified
exposure to Shariahcompliant equity and
equity-related securities
as well as sukuk.
TABRIC
The Fund aims to
provide medium to
long-term capital
growth from
investments in a
diversified portfolio of
Shariah-compliant
securities of emerging
market.
At the same time, the Fund
will also attempt to
maximise total investment
return by investing in
Structured Products,
and/or Options that offer
exposure to investment
strategies, indices or other
investments related to
commodities.
The Fund will invest
minimum of 70% of its
NAV in Shariah-compliant
equity and equity-related
securities of companies
domiciled in, or which carry
on the majority of their
businesses i.e derive at
least 50% of their
operating revenue from
businesses and
transactions conducted in
the emerging markets such
as Brazil, Russia, India and
China. A maximum of 30%
of its NAV will be invested
in sukuk while the balance
will be in Shariah-based
liquid asset.
14
§
§
§
§
§
§
§
§
§
§
Market Risk
Currency Risk
Country Risk
Emerging Market
Risk
Liquidity Risk
Regulatory Risk
Credit/Default
Risk
Interest Rate Risk
External Fund
Manager Risk
Reclassification
Of Shariah Status
Risk
§
Fund Name
Performance Benchmark
TAGF
FTSE Bursa Malaysia Top 100 Index (FBM Top 100)
TACF
FTSE Bursa Malaysia Emas Index (FBM EMAS)
TAIF
FTSE Bursa Malaysia Emas Shariah Index (FBM EMAS Shariah)
TIF
60% FTSE Bursa Malaysia KLCI (FBM KLCI) and 40% Maybank 12-month Fixed Deposit
TASF
FTSE Bursa Malaysia Small Cap Index (FBM Small Cap)
TAHGF
FTSE Bursa Malaysia Top 100 Index (FBM Top 100)
TADO
FTSE Bursa Malaysia EMAS Shariah Index (FBM EMAS Shariah) and Maybank 12-month General Investment
Account (GIA) rate. The FBM EMAS Shariah is used when the portfolio of the Fund consists of 90% or more of
equities whilst the 12-month GIA rate is used when the Fund consists of 90% or more of sukuk. Both
benchmarks will be used (50:50) when the portfolio of the Fund consists of a balanced mixed assets of Shariahcompliant equities and sukuk
TACP
Interbank Overnight Deposit Rates
TAICP
1-Month Maybank General Investment Account (GIA) rate
TASEA
FTSE/ASEAN 40 Index
TAGAAF
Composite benchmark comprising 25% Morgan Stanley Capital International (MSCI) AC World Index, 25%
Fixed Income Securities: JP Morgan Global Government Bond Global Unhedged USD Index, 25%Property: S&P
Developed REIT Index, 25% S&P Goldman Sachs Commodity Index (GSCI) Index
TAIB
50% Dow Jones Islamic Market Asia Pacific Index, 50% 12-month General Investment Account (GIA) rate
TAEURO
FTSE World Europe Index
TAUF
Morgan Stanley Capital International World Utilities Index – Net Index
TADF
FTSE Bursa Malaysia Emas Shariah Index (FBM EMAS Shariah)
TAACCI
RAM Quant Shop MGS Bond Short 1-3 Year
TABRIC
70% MSCI BRIC Islamic Index, 30% Maybank 12-month General Investment Account (GIA) rate
Information of the Target Fund – BNP PARIBAS L1 Equity World Utilities (formerly known as Fortis L Fund Equity
Utilities World Fund)
Operator and Fund Manager
BNP PARIBAS INVESTMENT PARTNERS LUXEMBOURG
Country of Origin
Luxembourg
Regulatory Authority
Commission de Surveillance du Secteur Financier
[Luxembourg's Financial Sector Oversight Commission]
Date of establishment (“Classic” class)
11 October 1999
You may visit any of our offices which can be found at page 6 or contact any of our customer service
personnel at 603-2031 6603 for advice in relation to the Funds. You may also contact the IUTA or our
Consultants servicing you for further advice
15
3.2
FEES AND CHARGES
This table describes the charges that you may directly incur when you buy or redeem units of the Funds.
Name of Fund
Sales Charge per Unit
imposed by IUTA
Sales Charge per Unit
imposed by Unit Trust
Consultants
Sales Charge per Unit
imposed by Manager
Repurchase Charge per
unit (for details, please
TAGF, TACF, TAIF, TIF, TASF,
TAHGF, TADO, TASEA, TAGAAF,
TAIB, TAEURO, TAUF & TADF
TABRIC
TAACCI
A maximum of 7% of the NAV per
Unit/amount invested of each Fund
(rounded to the nearest RM 0.01) is
imposed.
A maximum of
5.50% of the NAV
per Unit/amount
invested
A maximum of
4.00% of the NAV
per Unit/amount
invested.
A maximum of 7% of the NAV per
Unit/amount invested of each Fund
(rounded to the nearest RM 0.01) is
imposed.
A maximum of
5.50% of the NAV
per Unit/amount
invested
A maximum of
4.00% of the NAV
per Unit/amount
invested.
A maximum of 7% of the NAV per
Unit/amount invested of each Fund
(rounded to the nearest RM 0.01) is
imposed.
A maximum of
5.50% of the NAV
per Unit/amount
invested
A maximum of
4.00% of the NAV
per Unit/amount
invested.
TACP &
TAICP
There is no
sales charge
There is no
sales charge
There is no
sales charge
The Manager has no intention to impose any repurchase charge during
the duration of this Master Prospectus.
refer to page 106)
For penalty fees applicable to TAACCI please see below.
Penalty Fee per
Unit (for TAACCI)
As a measure to discourage the fluctuation of NAV due to redemption which could be disruptive to
Fund performance, Unit Holders are subject to penalty fee, a maximum of 0.50% of the redemption
proceeds would be imposed if redemption is made within 30 calendar days from the date of
investment.
All penalty fees charged will be retained by the Fund.
The penalty fee is the maximum rate which each of our distribution channels (IUTAs, Unit Trust
Consultants and Direct Investments through the Manager) can impose to investors.
Switching Fee
You may invest in one or more Funds with complete flexibility to switch between the Funds. The
switches are free and at NAV to NAV, subject to availability of units. Switching from Shariah-based
unit trust Funds to conventional Funds is discouraged, especially to Muslim unit holders.
Transfer Fee
There will be an administrative charge of RM5 or any other amount as the Manager may deem
appropriate.
THE MANAGER RESERVES THE RIGHT TO WAIVE AND/OR REDUCE THE SALES CHARGE, PENALTY CHARGE,
REPURCHASE CHARGE, SWITCHING FEE AND POLICY, AND TRANSFER FEE FROM TIME TO TIME AT ITS ABSOLUTE
DISCRETION. INVESTORS MAY BE ENTITLED TO A LOWER SALES CHARGE/REPURCHASE CHARGE THROUGH THE
SALES AND PROMOTIONAL CAMPAIGNS FROM TIME TO TIME OR ALTERNATIVELY, INVESTORS MAY NEGOTIATE
WITH THEIR PREFERRED DISTRIBUTOR FOR LOWER CHARGES, SUBJECT TO THE RESPECTIVE CHANNELS’
DECISION.
16
This table describes the fees that you may indirectly incur when you invest in the Fund.
Name of Fund
TAGF, TACF, TAIF, TIF, TASF, TAHGF, TADO, TASEA, TAGAAF, TAIB,
TAEURO, TAUF, TADF , TAACCI & TABRIC
Annual management
fee
1.5% per annum of the NAV of the Fund calculated on a daily basis.
(except for TAGAAF, TAEURO ,TAUF and TABRIC which the management
fee is 1.80% per annum)
Annual trustee fee
(actual rate excluding
foreign custodian fee
and charges)
Fund’s Expenses
directly related to the
Fund
For TAGF is 0.06% per annum (first RM20million), 0.05% per annum (next RM20million), 0.04%
per annum (next RM20million), 0.03% per annum (next RM20million), 0.02% per annum (next
RM20million) and 0.01% per annum (any amount in excess of RM100million). Registration
service fee and custodian fees paid to the Trustee are charged at RM18,000 per annum each.
§
For TACF is 0.10%per annum of the NAV of the Fund subject to a minimum of RM35,000 per
annum calculated and accrued daily.
§
§
For TAIF and TIF are 0.08%per annum of the NAV of the Fund calculated and accrued daily.
§
§
For TAHGF is 0.07%per annum of the NAV of the Fund calculated and accrued daily.
§
Independent Investment Committee
Member fee;
§
§
§
Auditor’s fee;
For TASF, TADO, TASEA, TAGAAF, TAIB TACP and TAICP are 0.07%per annum of the NAV of
the Fund subject to a minimum of RM18,000 per annum calculated and accrued daily.
For TAEURO, TAUF, TADF, TAACCI and TABRIC are 0.08% per annum of the NAV of the Fund
subject to a minimum of RM18,000 per annum calculated and accrued daily.
Tax Adviser’s fee;
§ Taxes;
§ Annual/ interim reports;
§ All fees authorised by the Deed of the relevant
Fund;
Shariah Adviser’s fee;
Financial Year End
MER (%)
TAGF
30 June
1.71%
TACF
30 September
1.73%
TAIF
31 May
1.64%
TIF
31 July
1.78%
TASF
30 April
1.72%
TAHGF
31 March
1.78%
TADO
31 January
1.65%
TACP
31 August
0.60%
TAICP
31 August
1.27%
TASEA
30 November
1.65%
31 July
1.54%
TAGAAF
TAIB
0.50% per annum of the
NAV of the Fund
calculated on a daily
basis
§
Management Expense Ratio (MER)
Fund Name
TACP & TAICP
30 September
1.87%
TAEURO
30 June
0.87%
TAUF
30 June
0.46%
TADF
30 April
1.96%
TAACCI*
30 September
3.25%
TABRIC
28 February**
NA
* For TAACCI, the MER (%) is based on 515 days
** For TABRIC, the financial year end for a leap year will fall on 29th February.
17
3.3
TRANSACTIONS
TAGF, TACF, TAIF, TIF, TASF, TAHGF, TADO, TASEA, TAGAAF, TAIB,
TAEURO, TAUF, TADF , TAACCI & TABRIC
TACP & TAICP
RM 1000
(Except for TAGF with minimum initial investments of RM1000 or 1000 units)
RM1,000
RM100
(Except for TAGF with minimum additional investments of RM100 or 100 units)
RM1,000
Minimum
Repurchase Amount
500 Units
500 Units
Minimum Balance
500 Units
500 Units
Name of Fund
Minimum Initial
Investments
Minimum Additional
Investments
Period to Realise
Redemption Money
Within 10 days upon receipt of the completed Form Of Request to Repurchase.
The minimum transfer amount is 500 units
Within 3 Business Days
upon receipt of the
completed Form Of
Request to Repurchase.
The minimum transfer
amount is 500 units
Transfer Facility
Unit Holders must maintain a minimum balance or they must request for a full transfer.
Cooling-Off Period
Within 6 Business Days of receipt by the Manager of the applications for investment. The cooling-off right is
only exercisable by qualified investors. Refer to page 109 for more information.
You may invest in one or more Funds with complete flexibility to switch between the Funds. The switches are
free and at NAV to NAV, subject to availability of units. Switching from Shariah-based unit trust Funds to
conventional Funds is discouraged, especially to Muslim unit holders
Switching Facility
When investors switch from TACP and TAICP (which are zero front-end Funds) to other Funds, sales charge
of maximum 7.0% of the NAV per unit will be deducted before it is invested in the recipient Funds. There will
be no sales charge imposed for switching between TACP and TAICP. The Manager reserves the right to
vary the terms of the switching facility.
For TAACCI, switching out of the Fund is not allowed within a 30 calendar day period from the date the
investments were made. Thereafter, switches are free and at NAV to NAV, subject to availability of Units.
The Manager reserves the right to vary the terms of the switching facility.
Re-Investment
Option
3.4
Unit Holders are given the option to reinvest their distribution at the prevailing NAV per unit.
DISTRIBUTION POLICY
All Funds
Income Distribution Policy
Annual /interim distribution (if any)
Income
Re-Investment Policy
In the absence of instructions to the contrary, distribution income from a fund will be automatically
reinvested, at no charge, into additional Units of that Fund based on the NAV per Unit on the
Reinvestment Date.
18
3.5
DEEDS
Funds
Deed
Supplemental Deed
TAGF
27 June 1996
First - 17 July 1998
Second - 14 March 2002
Third - 28 Sept 2006
TACF
20 September 1999
First - 28 Sept 2006
TAIF
6 April 2001
First - 28 Sept 2006
TIF
14 March 2002
-
TASF
22 December 2003
First - 21 Oct 2009
TAHGF
25 May 2004
-
TADO
31 December 2004
-
TACP
2 June 2005
-
TAICP
2 June 2005
-
TASEA
7 November 2005
-
TAGAAF
17 May 2006
-
TAIB
6 October 2006
First - 21 Oct 2009
TAEURO
5 February 2007
-
TAUF
26 June 2007
First - 28 Sept 2009
TADF
19 March 2008
-
TAACCI
2 March 2009
-
TABRIC
5 January 2010
-
PROSPECTIVE UNIT HOLDERS SHOULD READ AND UNDERSTAND THE CONTENTS OF THIS MASTER
PROSPECTUS AND IF NECESSARY, CONSULT YOUR PROFESSIONAL ADVISERS.
THERE ARE FEES AND CHARGES INVOLVED AND INVESTORS ARE ADVISED TO CONSIDER THEM BEFORE
INVESTING IN THE FUND.
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 20.
PAST PERFORMANCE OF THE FUND IS NOT AN INDICATION OF ITS FUTURE PERFORMANCE.
19
4. RISK FACTORS
4.1
GENERAL RISKS
Any investment carries with it an element of risk. With unit trusts, the potential risks can be analysed as follows:
Market Risk
Any purchase of equities must represent a risk investment as a unit trust fund principally invests in listed stocks, therefore, as
market conditions change, the price of units may fall as well as rise, and income produced by the Fund may also fluctuate.
Accordingly, the manager cannot guarantee any distribution or investment returns to the unit Holders. However, by investing in
a wide range of securities, the Manager attempts to balance this risk with the investment rewards that can be made.
Particular Stock Risk
Any irregular fluctuation of a particular stock may affect the unit price as the price of units may also fluctuate. This impact is
however minimised because the Fund invests in a wide portfolio of investments, thus spreading the element of risk.
Country Risk
The prices of securities may also be affected by the political and economic conditions of the country in which the securities are
issued. However, investment can be diversified across markets/countries which will assist in mitigating the risk that may arise.
Currency Risk
This risk is associated with investments denominated in foreign currencies. The NAV of a unit trust fund will be lower if the
foreign currency in which the securities are denominated moves unfavourably against Ringgit Malaysia. The Manager can
hedge the currency in view of mitigating adverse currency movements.
Loan Financing Risk
If you obtain a loan/ financing to finance your purchase of units, you need to understand that:
•
Borrowing/ financing increases the possibility for gains as well as losses;
•
If the value of your investment falls below a certain level, you may be asked by the financial institution to top up the
collateral or reduce the outstanding loan/ financing amount to the required level;
Investors are encouraged to invest money from their savings rather than borrowing money/ seek for financing from the financial
institutions. Shariah-based funds’ investors are encouraged to seek for Islamic financing to purchase the Units.
Interest Rate Risk
This risk refers to the effect of interest rate changes on the market value of a bond portfolio and the demand for a sukuk
portfolio. In the event of rising interest rates, prices of fixed income securities/ demand for sukuk will decrease and vice versa
thus will have an impact on the NAV or unit prices of the Fund. Meanwhile, debt securities/ sukuk with longer maturity and lower
coupon/ profit rate are more sensitive to interest rate changes. This will be mitigated via the management of the duration
structure of the fixed income/ sukuk portfolio.
As for Shariah-based Fund, the interest rate is a general economic indicator that will have an impact on the management of
Fund regardless of whether it is a Shariah-based Fund or otherwise. It does not in any way suggest that this Fund will invest in
conventional financial instruments. All the investments carried out for this Fund are in accordance with requirements of the
Shariah.
Credit Risk/Default Risk
This risk refers to the possibility that the issuer or financial institution of a securities or instruments will not be able to make
timely payments of interest or principal repayment on the maturity date. This may lead to a default in the payment of principal
and interest and ultimately a reduction in the value of unit trust funds. This risk is managed by the internal policy of setting a
ceiling or limit to the exposure and also the constant process of credit evaluation to mitigate such risk to an acceptable level.
Non-Compliance Risk
There is a risk that the management company may not adhere to the investment mandate of the Fund, the deed and
prospectus of the Fund, the Guidelines, the internal policies and the relevant laws. As a result, the Fund may not be able to
achieve its investment objectives. In order to mitigate this risk, the Manager has stringent internal controls and ensures that
compliance monitoring processes are undertaken.
Issuer Risk
Any large fluctuations in the prices of fixed income securities of any of the companies that the Fund owns may cause the NAV
or prices of units to change too. Such fluctuations can be caused by changes in government laws in the industry in which the
20
company belongs, entry of new competitors or changes in business directions / strategies / operations. It must be noted that it
is not possible to anticipate such risk all the time.
Management Company Risk
There is a risk that the Management Company may not adhere to the investment mandate of the Fund. With close monitoring
by the investment committee, back office system being incorporated with limits and controls, and regular reporting to the senior
management team, the Management Company is able to mitigate such risk. The Trustee will also oversee the Manager in its
compliace with the investment mandate. Poor management of the Fund may also jeopardise the investment of Unit Holders
through the loss of their capital invested in the Fund.
4.2
SPECIFIC RISKS OF THE FUNDS
Risk means the chance of your investment falling in value. In terms of time frame, the risk of a short-term investment is
normally higher than that of a long-term investment. A short-term time frame is often below three (3) years whilst a long-term
horizon takes five (5) years or more. Medium-term falls in between.
General risks of investing in unit trusts were described in page 20. The specific risks associated with investing in the Funds are
as stated below:
Market Risk
The risk that the value of a stock/share, bonds/ sukuk or any other security will be reduced by market activity. The volatility in
the change in market activity can be caused by factors such as inflation, changes in government policies, interest rates and
exchange rates. This is a basic risk associated with all securities. Such volatility in the change in market activity will cause the
NAV or prices of units to fall as well as rise, and income produced by the Funds may also fluctuate. An example of this would
be the 1998 Asian financial crisis.
In assessing market risk, the investment managers will keep a close watch on the financial markets to pick up potential adverse
movements in these markets.
Liquidity Risk
Some securities may not be as liquid as term deposits. Hence, there is no guarantee that such securities can be disposed of at
a desired price and receive the sale proceeds immediately. If the Funds have a large portfolio of stocks issued by smaller
companies, the relatively less liquid nature of those stocks could cause the value of the Funds to drop; this is because there are
generally less ready buyers of such stocks as compared with the stocks of larger and more established companies. This would
mean much care is needed when selecting a mix of securities to minimise this risk.
Emerging Market Risk
Some of the equity Funds may be invested in certain smaller and emerging markets, which exhibits lower levels of economic
and/or capital market development, limitations due to foreign investment restrictions, wide dealing spreads, restricted opening
hours of stock exchanges and a narrow range of investors. Trading volume and market capitalisation may be lower than in
more developed stock markets. This may result in a lower degree of liquidity for the Fund’s investments.
This risk however may be reduced when there is a low correlation between the activities of those markets and/or by the
diversification of investments within the relevant Funds.
Credit/Default Risk
This risk is a concern for investments in fixed-income securities/sukuk and refers to the ability of the issuer or counterpart to
honour obligations to make timely payments on principal and interest/profit. In the event that the issuer is faced with financial
difficulties, their credit worthiness may also decrease. This in turn may lead to default in the payments thus would affect the
value of the Funds’ investment. This risk is managed by the internal policy of setting a ceiling or limit to the exposure and also
the constant process of credit evaluation to mitigate such risk to an acceptable level.
Specific Stock/Issuer Risk
Any large fluctuations in the prices of shares or fixed income securities/ sukuk of any of the companies that the Funds own may
cause the NAV or prices of units to change too. Such fluctuations can be caused by changes in government laws in the industry
in which the company belongs, entry of new competitors or changes in business directions / strategies / operations. It must be
noted that it is not possible to anticipate such risk all the time.
Nevertheless, the investment managers will endeavour to detect any negative price movements by the constant and detailed
research that they will conduct on each company concerned. Upon detection, they will make the necessary decisions to alter
the mix of securities accordingly.
21
Furthermore, the individual price change will usually have little impact because the Funds will have either a diversified portfolio
of investments which spread the overall risk and thus, reduce overall volatility; or an asset allocation which includes cash &
liquid assets, which returns are less volatile in nature.
Interest Rate Risk
This risk refers to the effect of interest rate changes on the market value of a bond portfolio and demand for a sukuk portfolio. In
the event of rising interest rates, prices of fixed income securities/ demand for sukuk will decrease and vice versa. Meanwhile,
debt securities/ sukuk with longer maturity and lower coupon/profit rate are more sensitive to interest rate changes. This will be
mitigated via the management of the duration structure of the fixed income/ sukuk portfolio.
As for TAIF, TADO, TAICP, TAIB, TADF and TABRIC the interest rate is a general economic indicator that will have an impact
on the management of Fund regardless of whether it is a Shariah-based Fund or otherwise. It does not in any way suggest that
these Funds will invest in conventional financial instruments. All the investments carried out for these Funds are in accordance
with requirements of the Shariah.
Regulatory Risk
Trading and settlement practices of some of the markets in which the Funds may invest may not be the same as those in more
developed markets, and this may increase settlement risk and/or result in delays in realising investments made by the Funds. In
addition, the Fund will be exposed to credit risk on parties with whom it trades and will bear the risk of settlement default. The
Trustee may also be instructed by the Manager to settle transactions on a delivery free of payment basis where the Manager
believe and the Trustee agrees that this form of settlement is common market practice. Investors should be aware that this may
result in a loss to the Fund if a transaction fails to settle, and the Trustee will not be liable to the Fund for such loss.
Business Risk Of Emerging Companies
This risk is associated with investments in small cap companies. Emerging companies may be more volatile and risky
compared with mature and well-established companies. Any irregular fluctuation of the stocks of these companies may affect
the unit price as the price of units may also fluctuate.
Risks Associated With Underlying Funds
As the collective investment schemes invest in equities, fixed income instruments/sukuk, property related securities and
commodity related securities, prices of the schemes may rise and fall. The schemes invest in various currencies, USD, Euro,
Sterling, Yen and Australian Dollar. Hence the values of these currencies fluctuate over time and can affect the value of the
Funds.
To mitigate these currencies fluctuation, the Investment Team may from time to time employ currency hedging techniques to
manage the impact of the exchange rate fluctuations on the Fund and/or for purpose of efficient portfolio management. While
risk associated to the Fund can be reduced by diversifying the investment into more funds of different asset classes that fits into
the Fund’s objectives.
Business Risk Of Growth Companies
This risk is associated with investments in high growth companies. Some investments are focused on shares of companies that
are still in the growing stages of their business life cycles. While these companies offer higher potential for growth, the inherent
business risk of these less matured companies are also higher, even though these risks are mitigated by diversification and
filtering exercise. Any irregular fluctuation of the stocks of these companies may affect the unit price as the price of units may
also fluctuate.
External Fund Manager’s Risk
In the case that the investments of Fund are managed by another fund house and/or are invested in a Target Fund, the
Management Company has no control over the fund house’s and/or management company of the Target Fund’s investment
technique, knowledge or management expertise. In the event of mismanagement of the investments by the fund house and/or
management company of the Target Fund, the NAV of the Fund which invests into the Target Fund would be affected
negatively. The Fund would also be affected should there be any unresolved dispute between the Manager and the fund house
and/or the management company of the Target Fund of the Target Fund. Although the probability of such occurrences is minor,
should the situation arise TAIM reserves the right to seek an alternative external fund manager and/ or other collective
investment scheme that is consistent with the objective of this Fund.
Sector Investment Risk
Because equities within a given economic sector or industry tend to be affected by many of the same factors, the Fund may be
more volatile than a fund that invests more broadly and may underperform the overall equity market for any given period of
time. Sector investment risk can be mitigated by investing into a more defensive sector at different business cycle.
22
Reclassification Of Shariah Status Risk (for TAIF, TADO, TAICP, TAIB, TADF and TABRIC)
This risk refers to the risk that the currently held Shariah-compliant securities in the portfolio of Shariah-based Funds may be
reclassified to be Shariah non-compliant in the periodic review of the securities by the SACSC, the Shariah Adviser or the
Shariah Boards of the relevant Islamic indices. If this occurs, the value of the Fund may be adversely affected where the
Manager will take the necessary steps to dispose of such securities.
Legal Risk
The issuance of the ZNIDs, Structured Products, and the Option are subject to various legal provisions and their ability to
perform is dependent upon the absence of any legal impediments and obstacles that may prohibit the ZNIDs, Structured
Products, and Option Counterparty or the Manager from performing or discharging its obligations. The ZNIDs, Structured
Products, and the Option are issued pursuant to the prevailing rules and regulations governing the ZNIDs, Structured Products
and Option Counterparties by the relevant regulatory authorities of the home jurisdiction. If such rules are amended in any way,
the performance of the Fund may be affected.
Structured Products Or Options Risks
(a) Credit Risk of the Structured Products or Options Issuer
Structured products or options represent general contractual obligations of the Structured Products or options issuer and will
rank pari passu with the Structured Products or options issuer’s other general contractual obligations and with the Structured
Products or options issuer’s unsecured and unsubordinated debt. The Fund’s exposure to the investments in the Structured
Products or options are therefore exposed to the Structured Products or options issuer’s credit risk i.e. relying upon the
creditworthiness of the Structured Products or options issuer and of no other person. Unit Holders will have no rights against
the Underlying Asset or the manager of the Underlying Asset. Any default by the Structured Products or options issuer would
affect the NAV of the Fund.
In mitigating this risk, the Manager will purchase:
(i)
the Structured Product from an issuer with a minimum long-term rating by any domestic or global rating agency that
indicates adequate capacity for timely payment of financial obligations, and/or;
(ii)
the option from an issuer with a minimum long-term rating provided by any domestic or global rating agency that
indicates strong capacity for timely payment of financial obligations. (Section 5.3. on Investment Policy and Strategy).
(b) Factors Affecting Structured Products or Options
The value of the Structured Products or options is affected by a number of market factors, including but not limited to those
specified below. Hence, before redeeming or closing out on an investment in the Fund, Unit Holders should carefully consider
these factors:
(i)
the value of the Underlying Asset,
(ii)
the expected price volatility of the Underlying Asset,
(iii)
the time remaining to maturity,
(iv)
the level of prevailing interest rates,
(v)
the depth of the market or liquidity of the Underlying Asset,
(vi)
any change in currency exchange rates, and
(vii)
any related transaction costs.
(c) Secondary Market Liquidity Risk of Structured Products or Options
It is not possible to predict if and to what extent a secondary market may develop in any over-the-counter (off-exchange)
Structured Products or options or at what price such Structured Products or options will trade in the secondary market or
whether such market will be liquid or illiquid. Although the Structured Product or option seller has undertaken to trade the
Structured Products or options in the secondary market, there is no assurance that secondary market prices will reflect fair
market value or what Unit Holders deem to be fair value. Dealing in over-the-counter instruments may involve greater risks than
dealing in exchange-traded instruments. The price at which the Structured Products or options will trade will be dependent on
market conditions, which are beyond the Manager’s control.
(d) Market Volatility
Market volatility reflects the degree of instability and expected instability of the performance of the Underlying Asset. The level
of market volatility is not purely a measurement of the actual volatility, but is largely determined by the prices for instruments
which offer investors protection against such market volatility. The prices of these instruments are determined by forces of
supply and demand in the Structured Products or options markets generally. These forces are, themselves, affected by factors
such as actual market volatility, expected volatility, macro economic factors and speculation.
23
Economic Risk
Prospective investors should be aware that the price of units and the income from their investments may go down or up in
response to changes in interest rates, foreign exchange, economic and political condition and the earnings of corporations
making up in the portfolio of the Fund. Economic risk is managed through portfolio diversification and asset allocation and
monitoring of investment portfolio by professional fund manager and the investment committee, with the aim to minimise
securities exposure in the event of anticipated market weaknesses.
Currency Risk
The NAV of the Fund may be affected favorably or unfavorably by exchange control regulations or changes in exchange rates
between Ringgit and the relevant foreign currencies If the Fund invests in foreign currencies or assets denominated in a foreign
currencies, the Fund is exposed to foreign currencies risks. Fluctuations in exchange rates will affect the value of the Fund’s
foreign investments when converted into the local currency and subsequently the value of Unit Holders’ investments.
Country Risk
The value of the assets of the Fund may be affected by uncertainties such as currency repatriation restrictions, other
developments in the law or regulations, and the political and economic conditions of the countries in which the Fund is invested
in. Careful consideration shall be given to risk factors such as liquidity risk, political and economic environment of the countries
before any investments are made.
24
Summary of Specific Risk of all Funds:
Name of
Funds
Specific Risks
TAGF
§ Market Risk
§ Specific Stock
Risk
§ Interest Rate
Risk
§ Credit Risk
TACF
§ Market Risk
§ Specific Stock
Risk
§ Interest Rate
Risk
§ Credit Risk
TAIF
§ Market Risk
§ Specific Stock
Risk
§ Interest Rate
Risk
§ Credit Risk
§ Reclassification
of Shariah
Status Risk
TIF
§ Interest Rate Risk
§ Credit Risk
§ Liquidity Risk
§ Market Risk
§ Specific Stock
Risk
TASF
§ Market Risk
§ Specific Stock
Risk
§ Interest Rate
Risk
§ Credit Risk
§ Business Risk
of Emerging
Companies
TAHGF
§ Market Risk
§ Liquidity Risk
§ Specific Stock
Risk
§ Credit Risk
§ Business Risk
of Growth
Companies
TADO
§ Market Risk
§ Specific Stock
Risk
§ Interest Rate
Risk
§ Credit Risk
§ Reclassification
of Shariah
Status Risk
TACP
§ Market Risk
§ Interest Rate
Risk
§ Issuer Risk
§ Credit/Default
Risk
TAICP
§ Market Risk
§ Interest Rate
Risk
§ Issuer Risk
§ Credit/Default
Risk
§
§ Reclassification
of Shariah
Status Risk
TASEA
§ Economic Risk
§ Market Risk
§ Currency Risk
§ Emerging
Market Risk
§ External Fund
Manager’s Risk
TAGAAF
§ Market Risk
§ Country Risk
§ Currency Risk
§ Emerging
Market Risk
TAIB
§ Market Risk
§ Reclassification of
Shariah Status Risk
§ Country Risk
§ Currency Risk
§ Interest Rate
Risk
§ Emerging
Market Risk
TAEURO
§ Market Risk
§ Credit Risk
§ Country Risk
§ Risk associated
with underlying
Funds
§ Currency Risk
§ Interest Rate
Risk
§ Emerging
Market Risk
TAUF
§ Market Risk
§ External Fund Manager
Risk
§ Country Risk
§ Currency Risk
§ Regulatory Risk
§ Sector
Investment Risk
TADF
§ Market Risk
§ Specific Stock
Risk
§ Reclassification
of Shariah
Status Risk
§ Liquidity Risk
TAACCI
§ Market Risk
§ Country Risk
§ Credit/ Default
Risk
§ Legal Risk
§ Interest Rate
Risk
§ Structured
Products or
Options Risk
§ Issuer Risk
§ Currency Risk
TABRIC
§ Market Risk
§ Regulatory Risk
§ Currency Risk
§ Credit/Default
Risk
§ Country Risk
§ Interest Rate
Risk
§ Emerging
Market Risk
§ External Fund
Manager Risk
§ Liquidity Risk
§ Reclassification
of Shariah
Status Risk
25
5. DETAILED INFORMATION ON THE FUNDS
5.1
INVESTMENT POLICY
Our investment policy is based on a top-down and bottom-up approach. The investment managers will seek to identify stocks
which have deviated from their fair value and thereon make decisions to buy stocks which they believe are below their fair value
and to sell stocks with prices at a premium to their fair value.
The investment process begins with a top-down appraisal of the economy and this usually determines the asset allocation i.e.
how much to allocate to certain financial instruments. The equity portfolio, however, is a result of bottom-up observation and
analyses. These two approaches often converge and reinforce one another.
5.2
INVESTMENT STRATEGY FOR EQUITY INVESTMENTS
The actual asset allocation for each of the equity Funds will be determined using the following criteria:
(a)
Review on the outlook of the overall economic and financial markets, intended chiefly to identify the primary driving
forces that are impacting individual company profit trends and stock price performance to take advantage of the
varying economic cycles;
(b)
Filtering exercise to identify and select stocks to invest in by using the following benchmarks:
-
Price Earning Ratio;
Earnings Yields;
Earnings Growth;
Gearing Ratio;
Return On Equity;
Dividend Yield; and
Strength of Management.
The investment managers intend to adopt an active and frequent trading strategy in meeting the Funds’ investment objectives.
The investment managers may take temporary defensive positions that may be inconsistent with the Fund’s principle strategy in
attempting to respond to adverse market conditions, economic, political or any other conditions.
5.3
INVESTMENT STRATEGY FOR FIXED INCOME/SUKUK INVESTMENTS
The profile of the bond/ sukuk portfolio in terms of credit risk, interest rate risk and liquidity risk, and the allocation mix between
money market instruments and private debt securities/ sukuk, is determined based on the investment managers’ assessment of
the economic conditions. The investment managers will seek investment opportunities in Government Securities of various
tenures, high-grade listed and unlisted bonds/ sukuk issued by reputable companies with better than current Fixed
Deposit/General Investment Account rates.
In order to ensure sufficient liquidity, minimise risk and optimise the returns, the investment managers shall diversify the
portfolio sufficiently and adopt proactive investment strategies. To provide for sufficient liquidity at short notice, Treasury Bills/
Islamic Accepted Bills and liquid listed bonds/sukuk will be purchased. To minimise risk, Government Securities, loan stocks
offered by Government sponsored companies and reputable private companies will also be purchased. To provide higher
returns, long-term Government Securities and quality loan stocks offering high yield to maturity rates will be purchased and kept
for long term investment or redeemed upon maturity. The balance of the investments will be in stock markets.
The current fixed income securities include Bankers Acceptance, Negotiable Certificates of Deposits (with the exception of
TAIF, TADO, TAICP, TAIB, TADF and TABRIC) and Private Debt Securities (including Commercial Papers). For Private Debt
Securities (listed and unlisted), the investment managers closely follow the PDS rating and the qualitative aspects are also
analysed such as the cash-flow and the company’s earnings capacity. The investment managers also concentrate on the
technical aspects of the capital market such as its performance, trends and liquidity. As for TAIF, TADO, TAICP, TAIB and
TABRIC, the selection of investment avenues shall exclude Treasury bills and Loan Stock, and must comply with requirements
of the Shariah.
5.4
INVESTMENT STRATEGY FOR FUTURES CONTRACTS INVESTMENTS
The Funds may invest into futures contracts offered by Bursa Malaysia Derivatives Exchange (BMDE) and which are approved
under the ambit of the license accorded to the Manager. The Funds will enter into futures contracts for hedging purposes
(including anticipatory hedging purposes) as provided for under the Guidelines on Unit Trust Funds. For TAIF, TADO, TAIB,
TADF and TABRIC the futures contracts, if any, shall comply with Shariah requirements.
26
5.5
INVESTMENT STRATEGY FOR COLLECTIVE INVESTMENT SCHEMES
The portfolio of investment for the Funds may consist of other collective investment schemes, which are consistent with the
objectives of the Funds.
5.6
INVESTMENT STRATEGY FOR WARRANTS INVESTMENTS
The Funds may invest into equity warrants traded in the local stock market which provides a leveraging impact for the Funds.
5.7
INVESTMENT STRATEGY FOR FOREIGN INVESTMENTS
Apart from local investments, the Funds may invest into securities listed on the foreign stock exchange subject to the
requirements of the relevant authorities. Investments in foreign markets are limited to markets where the regulatory authority is
a member of the International Organization of Securities Commissions (IOSCO).
5.8
INVESTMENT STRATEGY FOR STRUCTURED PRODUCTS AND OPTIONS
Structured Products or option would generally allow the Funds to have higher exposure into the respective underlying assets
depending on the structure and market conditions at time of purchase. A higher exposure would allow the Funds to enjoy higher
total return as opposed to a direct investment into the similar underlying assets.
5.9
SHARIAH INVESTMENT GUIDELINES
The following matters are adopted by IBFIM in determining the Shariah status of equity investments of funds.
Local Securities
Reference for investment in local securities is based on the list of Shariah-compliant securities issued by the Shariah Advisory
Council of the Securities Commission (“SACSC”) twice yearly on the last Friday of May and November which is readily
available at the Securities Commission’s website. However, for Initial Public Offering (“IPO”) company that has yet to be
determined the Shariah status by the SACSC, IBFIM adopted the following qualitative and quantitative analysis in determining
its Shariah status.i
Quantitative Analysis:
(1)
Based on the opinions of the SC and most International Shariah Advisory Boards, IBFIM excludes companies which main
business activities involve the following:
(a)
Conventional financial services;
(b)
Gambling and gaming;
(c)
Manufacture or sale of non-halal products or related products (e.g. pork and liquor);
(d)
Manufacture or sale of tobacco-based products or related products;
(e)
Pornography;
(f)
Weaponry;
(g)
Entertainment activities that are not permitted by the Shariah; and
(h)
Other activities deemed non-permissible according to the Shariah.
(2) IBFIM deduces the following to ensure that they do not exceed the Shariah tolerable benchmarks:
(a)
Interest incomes over total incomes and interest incomes over profit before tax not exceeding 5%;
(b)
Income contribution from mixed activities which involve Shariah-prohibited elements such as interest-based
businesses, conventional banks, insurance, gambling, liquor and pork over total incomes and profit before tax not
exceeding 5%;
(c)
Income contribution from mixed activities which involve tobacco and tobacco-related businesses over total incomes
and profit before tax not exceeding 10%;
i
This criteria is adopted by IBFIM as a temporary measure until the SACSC releases the Shariah status of that particular IPO
company.
27
(d)
Mixed rental income contribution from Shariah non-compliant activities over total incomes and profit before tax not
exceeding 20%; and
(e)
Income contribution from mixed activities which involve businesses such as hotels and resorts, share trading and
stock broking over total incomes and profit before tax not exceeding 25%.
Should any of the above deductions fail to meet the benchmarks, IBFIM will not accord a Shariah-compliant status for the
companies.
Qualitative Analvsis
IBFIM will look into aspects of general public perception of the companies’ images, core businesses which are considered
important and maslahah (beneficial) to the Muslim ummah and the country, the non-permissible elements are very small and
involve matters like umum balwa (common plight and difficult to avoid), ‘uruf (custom) and rights of the non-Muslim community
which are accepted by the Shariah.
Foreign Securities:
Quantitative Analysis
(1)
(2)
Similar to the opinions of most Shariah Advisory Boards, IBFIM excludes companies with the following business activities:
(a)
Conventional financial services;
(b)
Gambling and gaming;
(c)
Manufacture or sale of non-halal products or related products (e.g. pork and liquor);
(d)
Manufacture or sale of tobacco-based products or related products;
(e)
Pornography;
(f)
Weaponry;
(g)
Entertainment activities that are not permitted by the Shariah; and
(h)
Other activities deemed non-permissible according to the Shariah.
IBFIM deduces financial ratios of the following to ensure that they do not exceed the benchmarks*:
(a)
Interest incomes over total incomes;
(b)
Total debts including all interest-bearing loans/debentures and their respective payables such as short term/long term
debts, short term/long term debentures and all debentures payables divided by total assets;
(c)
Total sum of company’s cash divided by total assets; and
(d)
Total account receivables including trade receivables divided by total assets.
* These benchmarks are set in accordance with the opinions of majority Shariah scholars and may vary in accordance with the
development of Islamic finance. Should any of the calculations fail to satisfy the benchmarks, IBFIM will not accord a Shariahcompliant status for the company.
Qualitative Analysis
IBFIM will look into the aspects of general public perception of the companies’ images, core businesses which are considered
important and maslahah (beneficial) to the Muslim ummah and the country, the non-permissible elements are very small and
involve matters like umum balwa (common plight and difficult to avoid), ‘uruf (custom) and rights of the non-Muslim community
which are accepted by the Shariah.
Local Sukuk:
Based on the list of sukuk readily available at the Securities Commission of Malaysia website.
Foreign sukuk:
IBFIM will review the information memoranda or prospectuses of the sukuk, its structure, utilisation of proceeds, Shariah
contracts,etc.
28
5.10
TA GROWTH FUND
TA Growth Fund (TAGF) is the first unit trust fund launched by TAIM to help investors participate in the buoyant economy and
in the growth of the capital market.
Investment Objective
The Fund aims to achieve steady income and capital growth over the medium to long term period, to its Unit Holders, by
investing in the strong economic growth of the country. Investing in the strong economic growth means buying into quality
companies listed in the Bursa Malaysia which benefits from healthy business environment and higher business confidence,
higher consumer spending and stable government policies. A strong economy will yield a stock market with higher valuations
and vice versa.
Any material changes to the investment objectives of the Fund would require Unit Holders’ approval.
Investment Policy, Strategy and Asset Allocation
The Fund’s investment strategy focuses on maintaining an optimal mix of investments with regular income and capital growth
potential within an acceptable level of risk. According to the three principal asset classes in varying proportion, the investment
portfolio comprises a combination of stocks and liquid assets.
On average, the equity exposure will be around 40%-95% of the Fund’s NAV and the balance will be held as liquid assets. The
Investment Manager may take temporary defensive positions in attempting to respond to adverse market conditions, economic,
political or any other conditions. The Manager reserves the right to take defensive position by investing in cash and money
market instruments. This strategy will minimise the potential loss, which may arise when the investment climate is unfavourable
or the stock is not promising.
Risks associated with such investment instruments that the investment managers propose to invest in are provided in the Key
Data section of this Master Prospectus.
Performance Benchmark
The benchmark for the Fund is the FTSE Bursa Malaysia Top 100 Index (FBM Top 100). Information on the benchmark of the
Fund can be obtained from major daily newspapers.
Permitted Investments
Unless otherwise prohibited by the relevant authorities or any relevant law and provided always that there are no
inconsistencies with the objective of the Fund, the Fund may invest in the following:
(a)
Securities of Malaysian companies listed on the Bursa Malaysia;
(b)
Units of unrelated property trust funds listed on the Bursa Malaysia;
(c)
Securities listed on a foreign stock exchange subject to Bank Negara Malaysia’s requirements and when necessary a prior
approval from the SC;
(d)
Unlisted securities that have been approved by the SC for listing and quotation on the Bursa Malaysia, which are offered
directly by the company approved for listing, by way of private placement or on a tender basis subject to the conditions
provided in the Guidelines;
(e)
Malaysian Government Securities, Treasury Bills, Bank Negara Malaysia Certificates and Government Investment
Certificates;
(f)
Malaysian currency balances in hand, Malaysian currency deposits with commercial banks, finance companies,
investment banks and Bank Islam Malaysia Berhad including Negotiable Certificates of Deposit and placement of money
at call with investment banks;
(g)
Cagamas Bonds and Banker’s Acceptances, 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 and private debt securities that have an
equivalent rating by RAM;
(h)
Other collective investment schemes subject to the conditions provided in the Guidelines;
(i)
Any futures contract traded in a futures market of an exchange company approved, or an exempt futures market declared,
by the Minister under the CMSA;
(j)
Lending of securities within the meaning of the Guidelines on Securities Borrowing and Lending; and
(k)
Any other form of investment as may be permitted by the SC from time to time.
The above investments are subject to the limitations and restrictions under the Guidelines which must be complied with at all
times based on the most up to date value of the Fund and value of investments.
29
5.11
TA COMET FUND
TA Comet Fund (TACF) reflects our conviction that the current economic condition provides a rare opportunity to purchase
good value stocks at low prices. The Fund will invest primarily in low-priced securities listed on the Bursa Malaysia which are
priced substantially below their net worth.
Investment Objective
The Fund aims to provide a channel for investors to invest in low-priced securities offering good value with great upside
potential with a view of diversifying towards medium-priced securities and blue chips as the market moves higher over the
medium to long term.
Any material changes to the investment objectives of the Fund would require Unit Holders’ approval.
Investment Policy, Strategy and Asset Allocation
For TACF, the investment will focus on securities of companies with strong potential growth, low in prices and may present
greater opportunities for capital appreciation. Risks associated with such investment instruments that the investment managers
propose to invest in are provided in the Key Data section of this Master Prospectus.
Typically, the equity exposure of TACF, which is a cyclical Fund, will range from 40% to 95% of the Fund’s NAV most of the
time with the cash portion making up the balance of the portfolio. The equity portion of the portfolio will consist of a combination
between low-priced securities, medium-priced securities and blue chips.
The proposed limits of investment in the equity portion will be as follows:
Low-priced securities
- up to 50% of the total equity portion
Medium-priced securities
- up to 50% of the total equity portion
Blue chips
- up to 50% of the total equity portion
The actual asset allocation shall be determined by the Investment Committee with the recommendation by the investment
manager having taken into consideration the market conditions. The Investment Manager may take temporary defensive
positions in attempting to respond to adverse market conditions, economic, political or any other conditions. The Manager
reserves the right to take defensive position by investing in cash and money market instruments. This strategy will minimise the
potential loss, which may arise when the investment climate is unfavourable or the stock is not promising.
Risks associated with such investment instruments that the investment managers propose to invest in are provided in the Key
Data section of this Master Prospectus.
Performance Benchmark
The benchmark for the Fund is the FTSE Bursa Malaysia Emas Index (FBM EMAS). Information on the benchmark of the Fund
can be obtained from major daily newspapers.
Permitted Investments
Unless otherwise prohibited by the relevant authorities or any relevant law and provided always that there are no
inconsistencies with the objective of the Fund, the Fund may invest in the following:
(a)
Securities of Malaysian companies listed on the Bursa Malaysia;
(b)
Units of unrelated property trust funds listed on the Bursa Malaysia;
(c)
Securities listed on a foreign stock exchange subject to Bank Negara Malaysia’s requirements and when necessary a prior
approval from the SC;
(d)
Unlisted securities that have been approved by the SC for listing and quotation on the Bursa Malaysia, which are offered
directly by the company approved for listing, by way of private placement or on a tender basis subject to the conditions
provided in the Guidelines;
(e)
Malaysian Government Securities, Treasury Bills, Bank Negara Malaysia Certificates and Government Investment
Certificates;
(f)
Malaysian currency balances in hand, Malaysian currency deposits with commercial banks, finance companies,
investment banks and Bank Islam Malaysia Berhad including Negotiable Certificates of Deposit and placement of money
at call with investment banks;
(g)
Cagamas Bonds and Banker’s Acceptances, 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 and private debt securities that have an
equivalent rating by RAM;
(h)
Other collective investment schemes subject to the conditions provided in the Guidelines;
30
(i)
Any futures contract traded in a futures market of an exchange company approved, or an exempt futures market declared,
by the Minister under the CMSA;
(j)
Lending of securities within the meaning of the Guidelines on Securities Borrowing and Lending; and
(k)
Any other form of investment as may be permitted by the SC from time to time.
The above investments are subject to the limitations and restrictions under the Guidelines which must be complied with at all
times based on the most up to date value of the Fund and value of investments.
5.12
TA ISLAMIC FUND
TA Islamic Fund (TAIF) is a form of investment which provides a simple way to invest in Shariah-compliant securities and other
approved investments that meet requirements of the Shariah.
Investment Objective
The Fund aims to achieve steady capital growth over the medium to long term period by investing in a portfolio of authorised
investments which conforms strictly to Shariah principles.
Any material changes to the investment objectives of the Fund would require Unit Holders’ approval.
Investment Policy, Strategy and Asset Allocation
TAIF’s strategy is to focus on companies that are undervalued but offer good growth potential. It also serves to satisfy the
needs of those who appreciate investments that comply with Shariah requirements. The selection of such Shariah-compliant
securities shall subscribe to the list of Shariah-compliant Securities by the Shariah Advisory Council of the Securities
Commission and/or the Shariah Adviser’s recommendation.
Primarily, TAIF is reflective of our conventional growth Funds with an added value that complies with Shariah requirements.
Investments in sukuk and Islamic futures contracts are on the condition that the dealings comply with Shariah requirements.
Placements under the Mudharabah mechanism and investments in other Shariah-based collective investment schemes will
always observe Shariah requirements while maintaining a focus on the relevant objectives of TAIF.
Depending on the investment condition, the Shariah-compliant equity exposure will range from 40% to 95% of the Fund’s NAV
with the balance in sukuk and Shariah-based liquid assets. The Investment Manager may take temporary defensive positions in
attempting to respond to adverse market conditions, economic, political or any other conditions. The Manager reserves the right
to take defensive position by investing in cash and Islamic money market instruments. This strategy will minimise the potential
loss, which may arise when the investment climate is unfavourable or the stock is not promising.
Risks associated with such investment instruments that the investment managers propose to invest in are provided in the Key
Data section of this Master Prospectus.
Performance Benchmark
The benchmark for the Fund is the FTSE Bursa Malaysia EMAS Shariah Index (FBM EMAS Shariah). Information on the
benchmark of the Fund can be obtained from major daily newspapers.
Permitted Investments
Unless otherwise prohibited by the relevant authorities or any relevant law and provided always that there are no
inconsistencies with the objective of the Fund, the Fund may invest in the following:
(a)
Shariah-compliant securities of Malaysian companies listed on the Bursa Malaysia, which are approved by the SACSC
and/or the Shariah Adviser;
(b)
Units of unrelated Shariah-based property trust funds listed on the Bursa Malaysia;
(c)
Unlisted Shariah-compliant securities that have been approved by the SC for listing and quotation on the Bursa Malaysia,
which are offered directly by the company approved for listing, by way of private placement or on a tender basis;
(d)
Malaysian Government Securities, Islamic Treasury Bills, Bank Negara Malaysia Monetary Notes-i and Government
Investment Issues;
(e)
Malaysian currency balances in hand, Shariah-based deposits (Malaysian currency) with commercial banks, finance
companies, investment banks and Islamic banks including Investment Certificates and placement of moneys at call with
investment banks;
(f)
Shariah-compliant securities listed on a foreign stock exchange subject to Bank Negara Malaysia’s Requirements and
where necessary prior approval from the SC;
31
(g)
Islamic Accepted Bills, Cagamas Sukuk and sukuk either bank guaranteed or carrying at least BBB rating by RAM
Malaysian Rating Corporation (MARC) and sukuk that have equivalent rating by RAM or MARC;
(h)
Other Shariah-based collective investment schemes subject to conditions provided in the Guidelines;
(i)
Any Islamic futures contracts traded in a futures market of an exchange approved, or an exempt futures market declared,
by the Minister under the CMSA;
(j)
Lending of Shariah-compliant securities within the meaning of the Guidelines on Securities Borrowing and Lending; and
(k)
Any other form of investment as may be permitted by the SACSC and/or the Shariah Adviser and in accordance with
Shariah requirements from time to time.
To ensure compliance with Shariah requirements, the Fund shall not invest in companies whose principal activities involve
gaming, alcoholic beverages, conventional banking, conventional insurance and financial services, non-halal food production
and processing, interest bearing instruments or other activities as determined by the SACSC and/or the Shariah Adviser from
time to time.
The above investments are subject to the limitations and restrictions under the Guidelines which must be complied with at all
times based on the most up to date value of the Fund and value of investments while adhering to Shariah requirements.
5.13
TA INCOME FUND
TA Income Fund (TIF) has the flexibility of exposure in both equity and fixed-income market.
Investment Objective
The Fund aims to provide investors with an alternative longer term investment that provides a steady stream of fixed-income
and potential capital gains from investment in bonds, money market instruments and equities.
Any material changes to the investment objectives of the Fund would require Unit Holders’ approval.
Investment Policy, Strategy and Asset Allocation
The investment strategy of TIF is to create a prudent mix in its portfolio which is in accordance with its objective and the
investment managers’ assessment of investment prospects in line with the underlying interest rates outlook. The bulk of the
Fund is invested in high yielding private debt securities which offer better returns than interest income from fixed deposits.
Risks associated with such investment instruments that the investment manager proposes to invest in are provided in the Key
Data section of this Master Prospectus.
Typically, TIF will invest 40% of the Fund’s NAV or more in bonds, money market instruments and in cash and a maximum of
60% of the Fund’s NAV in stocks. The actual allocation of the equity, fixed income securities and cash portions will vary
according to the economic and market conditions. The Investment Manager may take temporary defensive positions in
attempting to respond to adverse market conditions, economic, political or any other conditions. The Manager reserves the right
to take defensive position by investing in cash and money market instruments. This strategy will minimise the potential loss,
which may arise when the investment climate is unfavourable or the stock is not promising.
Risks associated with such investment instruments that the investment managers propose to invest in are provided in the Key
Data section of this Master Prospectus.
Performance Benchmark
The benchmark for the Fund is a composite benchmark comprising 60% FTSE Bursa Malaysia KLCI (FBM KLCI) and 40%
Maybank 12 month Fixed Deposit. Information on the benchmarks of the Fund can be obtained from major daily newspapers.
Permitted Investments
Unless otherwise prohibited by the relevant authorities or any relevant law and provided always that there are no
inconsistencies with the objective of the Fund, the Fund may invest in the following:
(a)
Securities of Malaysian companies listed on the Bursa Malaysia;
(b)
Units of unrelated property trust funds listed on the Bursa Malaysia;
(c)
Securities listed on a foreign stock exchange subject to Bank Negara Malaysia’s requirements and where necessary
prior approval from the SC;
(d)
Unlisted securities that have been approved by the SC for listing and quotation on the Bursa Malaysia, which are offered
directly by the company approved for listing by way of private placement or on a tender basis;
(e)
Cagamas bonds, Banker’s Acceptances, 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 or any other rating as may be specified in a
32
prospectus of the Fund and private debt securities that have an equivalent rating by RAM or other recognised rating
agencies;
(f)
Malaysian Government Securities, Treasury Bills, Bank Negara Malaysia Cerificates and Government Investment
Certificates;
(g)
Malaysian currency balances in hand, Malaysian currency deposits with commercial banks, finance companies,
investment banks and Islamic banks including Negotiable Certificate of Deposits, and placement of money at call with
investment banks;
(h)
Other collective investment schemes subject to conditions provided in the Guidelines;
(i)
Any futures contract traded in a futures market of an exchange approved , or an exempt futures market declared, by the
Minister under the CMSA;
(j)
Lending of securities within the meaning of the Guidelines on Securities Borrowing and Lending; and
(k)
Any other form of investment as may be permitted by the SC from time to time.
The above investments are subject to the limitations and restrictions under the Guidelines which must be complied with at all
times based on the most up to date value of the Fund and value of investments.
5.14
TA SMALL CAP FUND
TA Small Cap Fund (TASF) offers investors an opportunity to tap the underlying latent value of small capitalisation companies.
Investment Objective
The Fund aims to achieve higher capital appreciation by investing in instruments which have the potential of substantial value
appreciation over the medium to long term period.
Any material changes to the investment objectives of the Fund would require Unit Holders’ approval.
Investment Policy, Strategy and Asset Allocation
TASF emphasises on the accumulation of small cap stocks with steady profit and/or promising high earnings growth prospects
in the longer-term horizon. Such stocks are likely to be found in business sectors that focus on high value-added
manufacturing and infrastructural development, modern telecommunications, utilities, consumer products, the services and
information/ technologies sectors.
The Fund will invest in all stocks listed in the benchmark of the Fund; all stocks with a market capitalisation of up to Ringgit
Malaysia One Thousand Five Hundred Million (RM1,500 million) each at the point of investment; and/or in the case of foreign
markets, stocks with a market capitalisation in the bottom third ranking of all equity stocks listed in a particular foreign stock
exchange.
Depending on the investment condition, the equity exposure will range from 40% to 95% of the Funds’ NAV with the balance in
fixed income and liquid assets. The Investment Manager may take temporary defensive positions in attempting to respond to
adverse market conditions, economic, political or any other conditions. The Manager reserves the right to take defensive
position by investing in cash and money market instruments. This strategy will minimise the potential loss, which may arise
when the investment climate is unfavourable or the stock is not promising.
Risks associated with such investment instruments that the Investment Manager proposes to invest in are provided in the Key
Data section of this Master Prospectus.
Performance Benchmark
The benchmark for the Fund is the FTSE Bursa Malaysia Small Cap Index (FBM Small Cap). Information on the benchmark of
the Fund can be obtained from major daily newspapers.
Permitted Investments
Unless otherwise prohibited by the relevant authorities or any relevant law and provided always that there are no
inconsistencies with the objective of the Fund, the Fund may invest in the following:
(a)
All stocks listed in the benchmark of the Fund;
(b)
All stocks with a market capitalisation of up to Ringgit Malaysia One Thousand Five Hundred Million (RM1,500 million)
each at the point of investment;
(c)
Foreign stocks with a market capitalisation in the bottom third ranking of all equity stocks listed in a particular foreign stock
exchange;
(d)
Derivatives products offered by the Bursa Malaysia Derivatives Berhad;
33
(e)
Securities of companies listed on the Bursa Malaysia;
(f)
Unlisted securities that have been approved by the relevant authorities for listing and quotation on the Bursa Malaysia,
which are offered directly by the company approved for listing, by way of private placement or on a tender basis;
(g)
Malaysian Government Securities and Government Investment Certificates;
(h)
Malaysian currency balances in hand, Malaysian currency deposits with any financial institutions including Investment
Certificates, and placement of moneys at call with investment banks;
(i)
Malaysian Treasury Bills, Cagamas Bonds, private debt securities carrying at least BBB rating by RAM or MARC;
(j)
Futures contracts subject to the conditions prescribed by the relevant laws;
(k)
Listed and unlisted collective investment schemes; and
(l)
Any other form of investment as may be permitted by the relevant authorities from time to time.
The above investments are subject to the limitations and restrictions under the Guidelines which must be complied with at all
times based on the most up to date value of the Fund and value of investments.
5.15
TA HIGH GROWTH FUND
TA High Growth Fund (TAHGF) offers investment opportunities to investors who wish to invest in high earnings growth
companies listed on the Bursa Malaysia.
Investment Objective
The Fund aims to provide investors with above average capital growth over a medium to long-term period by investing mainly in
companies that offer higher growth prospect than the prevailing economic growth. Income distribution will be of secondary
importance.
Any material changes to the investment objective of the Fund would require Unit Holders’ approval.
Investment Policy, Strategy and Asset Allocation
The main criterion for stock selection is high earnings growth in the past 3 years. Focus will be on the top 40% of stocks listed
on the Bursa Malaysia in terms of earnings growth rate. These stocks are also operating in a high growth industry.
The asset allocation for equities will depend on the market conditions, ranging from 40% to 95% of the Fund’s NAV, with the
balance in fixed income securities, money market instruments and other liquid assets. The Investment Manager may take
temporary defensive positions in attempting to respond to adverse market conditions, economic, political or any other
conditions. The Manager reserves the right to take defensive position by investing in cash and money market instruments. This
strategy will minimise the potential loss, which may arise when the investment climate is unfavourable or the stock is not
promising.
Risks associated with such investment instruments that the investment manager proposes to invest in are provided in the Key
Data section of this Master Prospectus.
Performance Benchmark
The benchmark for the Fund is the FTSE Bursa Malaysia Top 100 Index (FBM Top 100). Information on the benchmark can be
obtained from major daily newspapers.
Permitted Investments
Unless otherwise prohibited by the relevant authorities or any relevant law and provided always that there are no
inconsistencies with the objective of the Fund, the Fund may invest in the following:
(a)
Securities of Malaysian companies listed on the Bursa Malaysia;
(b)
Units of unrelated property trust funds listed on the Bursa Malaysia;
(c)
Securities listed on a foreign stock exchange subject to Bank Negara Malaysia’s requirements and where necessary a
prior approval from the SC;
(d)
Unlisted securities that have been approved by the SC for listing and quotation on the Bursa Malaysia, which are offered
directly by the company approved for listing, by way of private placement or on a tender basis;
(e)
Malaysian Government Securities, Treasury Bills, Bank Negara Malaysia Certificates and Government Investment
Certificates;
34
(f)
Malaysian currency balances in hand, Malaysian currency deposits with commercial banks, finance companies,
investment banks and Bank Islam Malaysia Berhad including Negotiable Certificates of Deposit and placement of money
at call with investment banks;
(g)
Cagamas Bonds, Banker’s Acceptances, 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 and private debt securities that have an equivalent
rating by RAM;
(h)
Other collective investment schemes subject to the conditions provided in the Guidelines:
(i)
Any futures contract traded in a futures market of an exchange approved, or an exempt futures market declared, by the
Minister under the CMSA;
(j)
Lending of securities within the meaning of the Guidelines on Securities Borrowing and Lending; and
(k)
Any other form of investment as may be permitted by the SC from time to time.
The above investments are subject to the limitations and restrictions under the Guidelines which must be complied with at all
times based on the most up to date value of the Fund and value of investments.
5.16
TA DANA OPTIMIX
TA Dana OptiMix (TADO) has the flexibility of investing in various classes of asset such as Shariah-compliant equity, sukuk and
cash.
Investment Objective
The Fund aims to achieve steady capital gains with consistent income over the medium to long-term by investing in a
diversified mix of Shariah-approved instruments such as Shariah-compliant s equities, sukuk and cash.
Any material changes to the investment objectives of the Fund would require Unit Holders’ approval.
Investment Policy, Strategy and Asset Allocation
Typically, the portfolio has the flexibility of changing its asset allocation strategy depending on investment market condition.
During a very positive equity market outlook, the typical asset allocation for Shariah-compliant equity to cash mix asset would
be 95:5. In a prolong bear equity market, however, the asset allocation for sukuk to cash mix would be 90:10.
The Fund will select Shariah-compliant stocks with potentially good capital growth and dividend income over the medium to
long-term. The selection of such Shariah-compliant stocks shall subscribe to the list of Shariah-compliant securities by the
SACSC and/or the Shariah Adviser’s recommendation. Investments in unlisted Shariah-compliant securities and Islamic futures
contracts are on the condition that the dealings are acceptable under the Shariah requirement. Placements under the
Mudharabah mechanism and investments in other Shariah-based collective investment schemes will always observe Shariah
requirements while maintaining a focus on the relevant objectives of the Fund. In the case of sukuk, selection will depend
largely on credit quality to assure relative certainty in profit income and principal payment and overall total return stability.
Risks associated with such investment instruments that the investment managers propose to invest in are provided in the Key
Data section of this Master Prospectus.
Performance Benchmark
The benchmarks for the Fund are the FTSE Bursa Malaysia EMAS Shariah Index (FBM EMAS Shariah) and Maybank 12month General Investment Account (GIA) rate. The FBM EMAS Shariah is used when the portfolio of the Fund consists of 90%
or more of Shariah-compliant equities whilst the 12-month GIA rate is used when the Fund consists of 90% or more of sukuk.
Both benchmarks will be used (50:50) when the portfolio of the Fund consists of a balanced mixed asset of Shariah-compliant
equities and sukuk. Information on the benchmarks of the Fund can be obtained from major daily newspapers.
Permitted Investments
Unless otherwise prohibited by the relevant authorities or any relevant law and provided always that there are no
inconsistencies with the objective of the Fund, the Fund may invest in the following:
(a)
Shariah-compliant securities of Malaysian companies listed on the Bursa Malaysia which are approved by the SACSC
and/or the Shariah Adviser;
(b)
Units of unrelated Shariah-based property trust funds listed on the Bursa Malaysia;
(c)
Shariah-compliant securities listed on a foreign stock exchange subject to Bank Negara Malaysia’s requirements and
where necessary a prior approval from the SC;
(d)
Unlisted Shariah-compliant securities that have been approved by the SC for listing and quotation on the Bursa Malaysia,
which are offered directly by the company approved for listing, by way of private placement or on a tender basis;
35
(e)
Islamic Treasury Bills, Bank Negara Malaysia Monetary Notes-i and any Government Investment Issues;
(f)
Malaysian currency balances in hand, Shariah-based deposits (Malaysian currency) with commercial banks, finance
companies, investment banks and Bank Islam Malaysia Berhad including Islamic Negotiable Instruments and placement
of moneys at call with investment banks;
(g)
Islamic Accepted Bills, Cagamas Sukuk and sukuk that traded in the money market and either bank guaranteed or
carrying at least BBB rating by the RAM and sukuk that have equivalent rating by RAM;
(h)
Other Shariah-based collective investment schemes subject to the conditions provided in the Guidelines;
(i)
Any Islamic futures contract traded in a futures market of an exchange approved, or an exempt futures market declared,
by the Minister under the CMSA;
(j)
Lending of Shariah-compliant securities within the meaning of the Guidelines on Securities Borrowing and Lending; and
(k)
Any other form of investment as may be permitted by the SACSC and/or the Shariah Adviser and in accordance with
Shariah requirements from time to time.
To ensure compliance with Shariah requirements, the Fund shall not invest in companies whose principal activities involve
gaming, alcoholic beverages, conventional banking, conventional insurance and financial services, non-halal food production
and processing, interest bearing instruments or other activities as determined by the SACSC and/or the Shariah Adviser from
time to time.
The above investments are subject to the limitations and restrictions under the Guidelines which must be complied with at all
times based on the most up to date value of the Fund and value of investments while adhering to Shariah requirements.
5.17
TA CASHPLUS FUND
The Fund aims to provide investors with an avenue to invest in money market and debt securities. The objective is to provide a
highly liquid investment alternative, while providing reasonable returns which commensurate with the low risk nature of the
Fund.
Investment in the Fund is not the same as placement in deposit with a financial institution. There are risks involved
and investors should rely on their own evaluation to assess the merits and risks when investing in the Fund.
Investment Objective
The Fund aims to provide investors an avenue to invest in low risk instruments that provide reasonable returns and high level of
liquidity.
Any changes to the investment objectives of the Fund would require Unit Holders’ approval.
Investment Policy, Strategy and Asset Allocation
The Fund may invest up to 100% of its NAV in a diversified portfolio of short-term money market instruments which have a
remaining maturity of up to 365 days. The Fund may also invest up to 10% of its NAV in debt instruments with longer remaining
maturity period, which is more than 365 days but does not exceed 732 days.
The Fund will follow a stringent selection process to ensure quality instruments be invested in accordance with the investment
objective. In essence, the selection process involves a screening process that shortlist appropriate investment instruments that
match the Fund’s investment requirement and risk-return profile.
The Fund’s strategy is to provide returns comparable to that of short-term money market deposits which simultaneously
preserve its principal value and maintain a high degree of liquidity.
The short-term money market instruments comprises Malaysian currency deposits with commercial banks, finance companies,
investment banks and Bank Islam Malaysia Berhad, banker’s acceptances, negotiable certificates of deposits (NCDs) and
short-term private debt securities, which are known as commercial papers. Treasury products include demand deposits, fixed
deposits and savings deposits as well as other collective investment schemes.
The Fund is permitted to invest in other liquid assets including, but not confined to, securities issued by the government or
quasi-government bodies, namely Khazanah Nasional, Cagamas and Bank Negara Malaysia, securities guaranteed by the
government and private debt securities. In order to ascertain that the instruments invested are of high quality, these instruments
must be accorded with a minimum credit rating of P1/AAA or equivalent. Longer dated instruments are primarily fixed income
securities comprise of government and government-sponsored bonds as well as private debt securities with a long term credit
rating of A1/A+ or equivalent.
In the event that the ascribed credit rating falls below the minimum rating, the Fund is to dispose the investment within
reasonable time frame. However, the Fund reserves the right to retain the investment should it be a temporary downgrade.
36
Risks associated with such investment instruments that the investment managers propose to invest in are provided in the Key
Data section of this Master Prospectus.
Performance Benchmark
The benchmark for the Fund is based on Interbank Overnight Deposit Rates. Information on the benchmark of the Fund can be
obtained from major daily newspapers.
Permitted Investments
Unless otherwise prohibited by the relevant authorities or any relevant law and provided always that there are no
inconsistencies with the objective of the Fund, the Fund may invest in the following:
(a)
Malaysian currency balances in hand, Malaysian currency deposits with commercial banks, finance companies and
investment banks, including Negotiable certificates of deposits and placements of money at call with investment banks;
(b)
Malaysian currency deposits with Bank Islam Malaysia Berhad and placement of money at call with any bank having
Islamic banking facilities, or Islamic Accepted Bills, Bond Mudharabah Cagamas and Islamic debt securities;
(c)
Cagamas Bonds and Banker’s Acceptances, unlisted loan stocks and corporate bonds that are traded in the money
market and either bank guaranteed or carrying at least BBB rating by the RAM or MARC and private debt securities that
have an equivalent rating by RAM or MARC;
(d)
Malaysian corporate bonds traded in the money market which are either bank guaranteed or carrying at least a “A” rating
by RAM or MARC and private debt securities that have an equivalent rating by RAM or MARC;
(e)
Malaysian Government Securities, Treasury Bills, Bank Negara Malaysia Certificates and Government Investment
Certificates;
(f)
All type of collective investment scheme including unlisted and listed unit trust;
(g)
Bills of exchange, promissory notes or other negotiable instruments drawn, accepted or endorsed by a Banking
corporation, by any eligible company or by any financial corporation, or deposits with any such banking corporation,
eligible company or registered financial corporation;
(h)
Placements, deposits with or the acquisition of certificates of deposits or any other security issues by a banking
corporation, financial corporation or investment bank;
(i)
Deposits with or acquisition of certificates of deposits or any other security issued by a banking corporation;
(j)
The acquisition of any security or deposit guaranteed or supported by an irrecoverable letter of credit expiring not less
than 5 business days after the relevant security or deposits established or confirmed by a banking corporation or by an
eligible company; and
(k)
Any other form of investment as may be permitted by the SC from time to time.
The above investments are subject to the limitations and restrictions under the Guidelines which must be complied with at all
times based on the most up to date value of the Fund and value of investments.
5.18
TA ISLAMIC CASHPLUS FUND
The Fund aims to provide investors with an avenue to invest in the Islamic money market and sukuk which comply with Shariah
requirements. The objective is to provide a highly liquid investment alternative, while providing reasonable returns which
commensurate with the low risk nature of the Fund.
Investment in the Fund is not the same as placement in a deposit with a financial institution. There are risks involved
and investors should rely on their own evaluation to assess the merits and risks when investing in the Fund.
Investment Objective
The Funds aims to provide investors with an avenue to invest in low risk instruments that provide reasonable returns and high
level of liquidity which comply with Shariah requirements and as permitted by the SACSC and/or the Shariah Adviser of the
Fund.
Any changes to the investment objectives of the Fund would require Unit Holders’ approval.
37
Investment Policy, Strategy and Asset Allocation
The Fund may invest up to 100% of its NAV in a diversified portfolio of short-term Islamic money market instruments which
have a remaining maturity of up to 365 days. The Fund may also invest up to 10% of its NAV in sukuk with longer remaining
maturity period, which is more than 365 days but does not exceed 732 days.
The Fund will follow a stringent selection process to ensure quality instruments be invested in accordance with the investment
objective. In essence, the selection process involves a screening process that shortlists appropriate investment instruments that
matches the Fund’s investment requirement and risk-return profile.
The Fund’s strategy is to provide returns comparable to that of short-term Islamic money market deposits which simultaneously
preserve its principal value and maintain a high degree of liquidity.
The short-term Islamic money market instruments comprise Shariah-based deposits (Malaysian Currency) with licensed
financial institutions, Islamic Negotiable Instruments (INIs) and short-term sukuk. Treasury products include demand deposits
(Shariah-based), investment accounts and Shariah-based collective investment schemes.
The Fund is permitted to invest in other Shariah-based liquid assets including, but not confined to, sukuk issued by the
government or quasi-government bodies, namely Khazanah Nasional and Bank Negara Malaysia, sukuk guaranteed by the
government and corporate sukuk. In order to ascertain that the instruments invested are of high quality, these instruments must
be accorded with a minimum credit rating of P3/AA or equivalent.
Longer dated instruments are primarily comprised of Government Investment Issues as well as corporate sukuk with a long
term credit rating of A1/A+ or equivalent.
In the event that the ascribed credit rating falls below the minimum rating, the Fund is to dispose the investment within
reasonable time frame. However, the Fund reserves the right to retain the investment should it be a temporary downgrade.
Risks associated with such investment instruments that the investment managers propose to invest in are provided in the Key
Data section of this Master Prospectus.
Performance Benchmark
The benchmark for the Fund is based on Maybank 1-month General Investment Account (GIA) rate. Information on the
benchmark of the Fund can be obtained from major daily newspapers.
Permitted Investments
Unless otherwise prohibited by the relevant authorities or any relevant law and provided always that there are no
inconsistencies with the objective of the Fund, the Fund may invest in the following:
(a)
Malaysian currency balances in hand, Shariah-based deposits (Malaysian currency) with any licensed financial institutions
including Investment Certificates;
(b)
Malaysian currency deposits with Bank Islam Malaysia Berhad and Bank Muamalat as well as placement with Islamic
money market instruments at investment banks;
(c)
Islamic Accepted Bills, Cagamas Sukuk and sukuk that are traded in the Islamic money market and either bank
guaranteed or carrying at least BBB rating by the RAM or MARC and sukuk that have an equivalent rating by RAM or
MARC;
(d)
Government Investment Issues, Bank Negara Monetary Notes-i and any other government Islamic paper;
(e)
All types of Shariah-based collective investment schemes including unlisted and listed Shariah-based unit trusts;
(f)
Placements, Shariah-based deposits with or the acquisition of certificates of deposits or any other security issues by a
banking corporation, financial corporation or investment bank;
(g)
The acquisition of any security or Shariah-based deposit guaranteed or supported by an irrecoverable letter of credit
expiring not less than 5 business days after the relevant security or Shariah-based deposits established or confirmed by a
banking corporation or by an eligible company; and
(h)
Any other form of investment as may be permitted by the SACSC and/or the Shariah Adviser and in accordance with
Shariah requirements from time to time.
To ensure compliance with Shariah requirements, the Fund shall not invest in companies whose principal activities involve
gaming, alcoholic beverages, conventional banking, conventional insurance and financial services, non-halal food production
and processing, interest bearing instruments or other activities as determined by the SACSC and/or the Shariah Adviser from
time to time.
38
The above investments are subject to the limitations and restrictions under the Guidelines which must be complied with at all
times based on the most up to date value of the Fund and value of investments while adhering to Shariah requirements.
5.19
TA SOUTH EAST ASIA EQUITY FUND
The TA South East Asia Equity Fund (TASEA) aims to provide long-term capital growth of assets of the Fund by investing
primarily in listed equities and equity related instruments (including REITs) in South East Asia, particularly in Indonesia,
Malaysia, Singapore, Thailand, and the Philippines.
Investment Objective
The Fund aims to provide steady income and long-term capital growth by investing primarily in quoted or listed equities and
equity related instruments (including REITs) in South East Asia markets.
Any changes to the investment objective of the Fund would require Unit Holders’ approval.
Investment Policy, Strategy and Asset Allocation
The Fund may invest up to 100% of its NAV in foreign equity and equity related securities in the South East Asia markets while
0 to 5% of the total assets will be kept in liquid assets.
The Fund will invest primarily in quoted or listed equities and equity related instruments (including REITs) in South East Asia,
particularly in Indonesia, Malaysia, Singapore, Thailand, and the Philippines. A portion of the Fund will also be invested in high
dividend yielding stocks to provide a steady income stream to the Fund.
There is no target industry or sector for the investments of the Fund. Investments by the Fund are not subject to any specific
percentage or monetary limit on investment in a single industry or country. Lion Global Investors’ focused, disciplined and
research-oriented investment process will be used to manage the Fund. Lion Global Investors’ investment philosophy is to buy
stocks at a discount to its intrinsic value and to achieve long-term performance through high conviction idea. The portfolio will
be constructed from investment ideas derived from rigorous bottom-up research overlaid by top-down analysis.
Risk management with an emphasis on portfolio diversification forms an integral part of the External Investment Manager’s
investment strategy and process. The External Investment Manager intends to adopt an active management strategy in
meeting the Fund's investment objectives. As the Fund primarily invests in equities and equities-related instruments, the equity
weighting may change as the External Investment Manager purchases and/or sell equities based on the prevailing market
condition. The External Investment Manager may take temporary defensive positions in attempting to respond to adverse
market conditions, economic, political or any other conditions. The External Manager reserves the right to take defensive
position by investing in cash and money market instruments. This strategy will minimise the potential loss, which may arise
when the investment climate is unfavourable or the stock is not promising.
Given that the Fund is invested in foreign markets, there is risk associated with currency volatility. The External Investment
Manager usually do not hedge their foreign currency exposure on a daily basis unless it will assist in mitigating adverse
currency movements.
The External Investment Manager diversifies its investment across a range of securities in order to minimise specific risk
exposure to any particular company or a group of companies. The investments of the Fund are also diversified across markets /
countries which will assist in mitigating country risk that may arise.
Risks associated with such investment instruments that the investment managers propose to invest in are provided in the Key
Data section of this Master Prospectus.
Performance Benchmark
The benchmark for the Fund is based on FTSE/ASEAN 40 Index.Information on the benchmark of the Fund can be obtained
from Bloomberg at www.bloomberg.com.
Permitted Investments
Unless otherwise prohibited by the relevant authorities or any relevant law and provided always that there are no
inconsistencies with the objective of the Fund, the Fund may invest in the following:
(a)
Securities of companies listed on the stock exchanges within the South East Asia region, particularly in Indonesia,
Malaysia, Singapore, Thailand and the Philippines;
(b)
Foreign currency balances, fixed deposit and money market instruments placed with local and foreign commercial
banks, finance companies, and investment banks;
(c)
Other collective investment schemes (including REITs) of the South East Asian region;
39
(d)
Derivatives such as warrants, futures and option contracts which are traded in approved exchanges; and
(e)
Any other forms of investment as may be agreed upon by the Manager and the Trustee from time to time, and as
may be permitted by the SC.
The above investments are subject to the limitations and restrictions under the Guidelines which must be complied with at all
times based on the most up to date value of the Fund and value of investments.
5.20
TA GLOBAL ASSET ALLOCATOR FUND
The TA Global Asset Allocator Fund (TAGAAF) is a flexible Fund of Funds that aims to achieve a high degree of consistency in
returns through a “truly” diversified portfolio of funds that covers the key investment classes globally available.
This would include investments in collective investment schemes or similar schemes specialising in equities, fixed income
instruments, property-related securities (including REITS) and commodities-related securities. The resultant portfolio is
expected to be most resilient in almost all market conditions given the low correlation among the various asset classes. Returns
are expected in the form of consistent capital appreciation of underlying funds and dividend income.
Investment Objective
The Fund aims to provide investors with long term capital growth by investing in a diversified portfolio of collective investment
schemes or similar schemes globally that invests in equities, fixed income instruments, property-related securities and
commodity related securities.
Any changes to the investment objective of the Fund would require Unit Holders’ approval.
Investment Policy, Strategy and Asset Allocation
The Fund will invest in a portfolio of reputable domestic and global funds that are liquid and registered with recognised
exchanges in Malaysia, United States, United Kingdom, Australia, Hong Kong, Singapore and Japan. The Manager will decide
on the asset allocation to build a well-diversified portfolio of funds that complement and are lowly correlated amongst each
other to form the basic underlying concept of the investment strategy. The Fund will invest in a broad range of asset classes
that perform differently at different cycle of the market. Four major asset classes have been identified namely equities, fixed
income instruments, property-related instruments and commodity-related instruments.
The asset classes will be actively selected and combined by the Manager to produce an optimal diversified portfolio that is
expected to be resilient in almost all market condition. In determining the appropriate allocation, the Investment Team will take
into consideration the risk and correlation of each asset class, the overall risk-reward ratio when combined, the current outlook
for each asset class and the expected market scenario. The Manager may take temporary defensive positions that may be
inconsistent with the Fund's principal strategy, in attempting to respond to adverse market conditions, economic, political, or
any other conditions. The Manager reserves the right to take defensive position by investing in cash and money market
instruments.
Risks associated with such investment instruments that the investment managers propose to invest in are provided in the Key
Data section of this Master Prospectus.
Asset Allocation Strategy
The Fund shall maintain a 90% of its minimum investment in other collective investment schemes at all times with the balance
in liquid assets. In terms of asset allocation, as an indication, a neutral rating for all asset classes would mean an equal 25%
weightage in each of the four (4) asset classes. The Fund will be invested in each asset class (i.e. equities, fixed income
securities, property-related securities and commodity-related securities), ranging from 0 to 50% respectively.
In terms of Fund’s allocation, the Manager will select funds that are managed by both local and foreign investment managers
for each asset class to provide global and local exposure in each asset class. The Fund however, will be invested in a minimum
of five (5) collective investment schemes in its portfolio at all times with a maximum exposure of 30% in one (1) single collective
investment scheme.
40
As an illustration, the sample portfolio for TAGAAF is as shown in the table below:
Asset Class
Equities
Fixed income instruments
Property related securities
Commodity related securities
Funds
1.
AAA Global Growth & Value Fund
2.
BBB Emerging Markets Fund
3.
CCC Growth Fund (Local)
1.
DDD Global Bond Fund
2.
EEE World Income Fund
3.
FFF Money Market Fund
1.
Real Estate Investment Trusts (REITs)
•
GGG-REIT
•
HHH REIT
2.
JJJ Global Real Estate Fund
1.
KKK World Mining Fund
2.
LLL World Commodity Fund
In evaluating the suitability of specific funds for investment, the Manager shall conduct a review of the track record of the
manager and the Fund, investment objective of the fund, investment policy and strategies, fund performance and other factors
deemed important by the Manager. The Fund shall invest based on fundamentals of the relevant markets and with a long view
of at least 5 years. This would allow sufficient time for the various asset classes to interact and realise the benefit of asset
diversification.
Overall, the Fund’s volatility will be closely monitored to position the Fund as moderately aggressive. The portfolio is managed
with the aim to deliver positive returns in any market condition. This will be achieved by actively managing asset allocation
within the portfolio through various market cycle as well as tapping on to the skills and expertise of the top-tier fund managers in
their respective categories.
Risk Management Strategy
Risk management with an emphasis on portfolio diversification forms an integral part of our investment strategy and process.
The Manager intends to adopt an active management strategy in meeting the Fund's investment objectives. The Manager will
vary the asset allocation of each collective investment scheme between 0 to 50% of the Fund’s NAV respectively in line with
their outlook of each asset class. With the aim of building a well-diversified portfolio, the Fund will be invested in four lowly
correlated asset classes that perform differently at different cycle of the market. As such, this will assist in minimising any single
market risk that may arise.
As the Fund is also invested in foreign markets, there is risk associated with currency volatility. The Manager usually do not
hedge their foreign currency exposure on a daily basis unless it will assist in mitigating adverse currency movements.
The Manager diversify their investments across a range of collective investment schemes in order to minimise specific risk
exposure to any particular company or group of companies. The Fund will be invested in a minimum of five (5) collective
investment schemes in its portfolio at all times with a maximum exposure of 30% in one (1) single collective investment
scheme.
Performance Benchmark
As the Fund will be invested in four major asset classes, the benchmark for the Fund will be based on the following:
•
Equities: Morgan Stanley Capital International (MSCI) AC World Index – 25%;
•
Fixed Income Securities: JP Morgan Global Government Bond Global Unhedged USD Index – 25%;
•
Property: S&P Developed REIT Index – 25%; and
•
Commodities: S&P Goldman Sachs Commodity Index (GSCI) Index– 25%.
Information on the benchmark of the Fund can be obtained from local national newspapers and Bloomberg at
www.bloomberg.com
41
Permitted Investments
Unless otherwise prohibited by the relevant authorities or any relevant law and provided always that there are no
inconsistencies with the objective of the Fund, the Fund may invest in the following:
(a)
All type of collective investment schemes including unlisted and listed unit trusts that are regulated and
registered/authorised/approved by the relevant authorities in their home jurisdiction;
(b)
Malaysian currency deposits and placement of money at call with any banks;
(c)
Malaysian currency balances in hand, Malaysian currency deposits with commercial banks, finance companies,
investment banks and Bank Islam Malaysia Berhad including Negotiable Certificates of Deposit and placement of
money at call with investment banks;
(d)
Foreign currency deposits;
(e)
Foreign exchange spot, forward and futures contract; and
(f)
Any other form of investment as permitted by the SC from time to time.
The above investments are subject to the limitations and restrictions under the Guidelines which must be complied with at all
times based on the most up to date value of the Fund and value of investments.
5.21
TA ASIA PACIFIC ISLAMIC BALANCED FUND
The TA Asia Pacific Islamic Balanced Fund (TAIB) has the flexibility of exposure in both Shariah-compliant equity (including
other equity related securities) and sukuk.
Investment Objective
The Fund aims to provide steady income and capital growth over the medium to long-term period by focusing it’s investment in
local and Asia Pacific listed and unlisted equities, equity related securities, fixed income securities, participation in mutual funds
and other interests in collective investment schemes which are permitted under the Guidelines and complies with Shariah
requirements.
Any changes to the investment objective of the Fund would require Unit Holders’ approval.
Investment Policy, Strategy and Asset Allocation
The Fund seeks to meet its objectives of producing steady and recurring income while pursuing long-term capital growth by
adhering to a balanced asset allocation approach of investing 40% to 60% of its NAV in Shariah-compliant equity and equity
related securities while the balance into sukuk and Shariah-based liquid assets. The Fund will invest into the permitted
investments instruments available locally and in the Asia Pacific region.
The Fund may also consider investments in unlisted Shariah-compliant equities with attractive potential returns. To mitigate the
risks, the Fund may also invest in Islamic futures and options contracts to hedge against market volatility.
The Fund will be investing 40% to 60% of its NAV in Shariah-compliant equities and equity related securities while balance in
sukuk and Shariah-based liquid assets. Notwithstanding the need for a stable and recurring income stream, the investment in
sukuk is often raised at the expense of Shariah-compliant equity allocations when the equity markets are anticipated to be weak.
Conversely, when the equity markets are expected to perform well, the Funds are reallocated from sukuk to Shariah-compliant
equities.
The equity investment of the Fund primarily focuses on a diversified portfolio of listed or unlisted Shariah-compliant equities and
equity related instruments available locally and in the Asia Pacific region. Generally, companies with good earnings growth
prospects over the medium to long-term are selected. In identifying such companies, the Fund relies on fundamental research
where the financial health, industry prospects, management quality and past track records of the companies are considered.
The Fund is invested in sukuk such as sovereign sukuk, corporate sukuk and Islamic money market instruments available
locally and in the Asia Pacific region. The Fund will invest in sukuk that are rated BBB or higher (rating by RAM, MARC,
equivalent by Moody’s or Standard & Poor’s). Where yields are attractive and profit rate trends are favorable, the investments in
sukuk will be increased.
Up to 70% of the Fund’s NAV can be invested into foreign Shariah-compliant equity and equity related securities and sukuk
available in the Asia Pacific region. This is to provide a platform of diversification for investors to diversify their investment into
Shariah-compliant securities available in the Asia Pacific region. The Manager intend to adopt an active management strategy
in meeting the Fund’s investment objectives. The Manager may take temporary defensive positions that may be inconsistent
with the Fund's principal strategy, in attempting to respond to adverse market conditions, economic, political, or any other
42
conditions. The Manager reserves the right to take defensive position by investing in cash and Islamic money market
instruments.
Risks associated with such investment instruments that the investment managers propose to invest in are provided in the Key
Data section of this Master Prospectus.
Performance Benchmark
As the Fund will be invested in balanced asset classes between Shariah-compliant equity and sukuk, the benchmark for the
Fund will be based on the following:
•
Shariah-compliant equity: Dow Jones Islamic Market Asia Pacific Index – 50%; and
•
Sukuk: Maybank 12-month General Investment Account (GIA) rate – 50%
Information on the benchmark of the Fund can be obtained from local national newspapers and Bloomberg at
www.bloomberg.com.
Permitted Investments
Unless otherwise prohibited by the relevant authorities or any relevant law and provided always that there are no
inconsistencies with the objective of the Fund, the Fund may invest in the following:
(a)
Shariah-compliant securities of Malaysian companies listed on the Bursa Malaysia;
(b)
Units of Shariah-based property trust funds listed on the Bursa Malaysia and other foreign markets which are approved by
the relevant authorities;
(c)
Shariah-compliant securities listed on foreign stock exchanges, including American Depository Receipts (ADRs) and
Global Depository Receipts (GDRs);
(d)
Unlisted Shariah-compliant securities that have been approved by the relevant authorities for listing and quotation on the
Bursa Malaysia and other foreign markets, which are offered directly by the company approved for listing, by way of
private placement or on a tender basis;
(e)
Malaysian Government Investment Issues, Bank Negara Monetary Notes-i and any other government Islamic papers;
(f)
Malaysian currency balances in hand, Malaysian currency Shariah-based deposits with licensed financial institutions
including Investment Certificates and placement of moneys at call with investment banks;
(g)
Shariah-compliant multi-currency money market accounts;
(h)
Islamic Accepted Bills, Cagamas Sukuk, sukuk carrying at least BBB rating by the RAM or MARC or equivalent by
Moody’s or Standard & Poor’s;
(i)
Listed and unlisted Shariah-based collective investment schemes that are regulated/ registered/ authorised or approved
by the relevant authorities in their home jurisdiction;
(j)
Islamic futures contracts subject to the conditions prescribed by the relevant laws; and
(k)
Any other form of investment as may be permitted by SACSC, the relevant Islamic Indices and/or the Shariah Adviser and
in accordance with Shariah requirements from time to time.
To ensure compliance with Shariah requirements, the Fund shall not invest in companies whose principal activities involve
gaming, alcoholic beverages, conventional banking, conventional insurance and financial services, non-halal food production
and processing, interest bearing instruments or other activities as determined by the SACSC and/or the Shariah Adviser from
time to time.
The above investments are subject to the limitations and restrictions under the Guidelines which must be complied with at all
times based on the most up to date value of the Fund and value of investments while adhering to Shariah requirements.
5.22
TA EUROPEAN EQUITY FUND
TA European Equity Fund (TAEURO) will invest in a diversified portfolio of local and/or foreign equity funds, REITs and ETFs
that invest in Europe. This would include investments in collective investment schemes or similar schemes specialising in
European equities. The resultant portfolio is expected to be flexible in allocating the Fund into the best equity strategies that
suits the market condition at the point of investment. Returns are expected in the form of consistent capital appreciation of
underlying funds and dividend income.
43
Investment Objective
The Fund aims to seek steady income and capital growth over medium to long term through investments in a diversified
portfolio of local and/or foreign equity funds, REITs and ETFs that invest in Europe.
Any changes to the investment objective of the Fund would require Unit Holders’ approval.
Investment Policy, Strategy and Asset Allocation
The Fund will be invested in a portfolio of reputable domestic and global funds that are liquid and registered with recognised
exchanges and/or authorities including, but not limited to, the following countries: Malaysia, United Kingdom, Hong Kong,
Singapore and Luxembourg.
The Manager will decide on the Funds allocation to build a well-diversified portfolio of funds that complement and is able to
manage risk exposure by allocating into the best equity investment strategies that suits the market. The Fund will invest in a
broad range of European equity funds and focuses into different investment strategy at different cycle of the market, e.g. large
capitalization, small capitalization, dividend paying stock and property related equities. The Fund may invest up to 15% of its
NAV into bond funds when the equity markets are anticipated to be weak. The investment in bond funds is generally raised at
the expense of equity funds allocation when the equity markets are anticipated to be weak and vice-versa.
The equity funds will be actively selected and combined by the Manager to produce an optimal diversified portfolio. In
determining the appropriate allocation, the Manager will take into consideration the risk of the investment strategy by the
underlying fund.
Risks associated with such investment instruments that the investment managers propose to invest in are provided in the Key
Data section of this Master Prospectus.
Fund Allocation Strategy
The Fund shall maintain a minimum of 90% of its NAV in collective investment schemes at all times with the balance in liquid
assets. The Fund however, will be invested in a minimum of five (5) collective investment schemes in its portfolio at all times
with a maximum exposure of 30% in one (1) single collective investment scheme. As an illustration, the sample portfolio for
TAEURO is as shown in the table below:
Strategy
Large Capitalisation
Small Capitalisation
Property related securities
Dividend Fund
Funds
1.
AAA European Fund
2.
BBB European Large Capital Fund
1.
DDD European Small Capital Fund
2.
EEE European Smaller Company Fund
1.
JJJ European Property Fund
2.
Real Estate Investment Trusts (REITs)
•
GGG REIT
•
HHH REIT
1)
KKK European Dividend Fund
Solid management and sound investment performance of the target funds are factors that the Manager also considers. In
evaluating the suitability of target funds for investment, the Manager will conduct a review of the track record of the manager
and the fund, investment objective of the fund, investment policy and strategies, fund performance and other factors deemed
important by the Manager.
The Manager will invest in the target funds in a manner, which will be in the best interest of the Unit Holders. The switch to
another collective investment scheme may be performed on a staggered basis to facilitate a smooth transition. Hence, during
the transition period the Fund’s investment strategy may differ from the stipulated investment strategies.
The collective investment schemes identified to be invested in are (but not limited to):
§
Henderson Horizon Continental European Equity Fund;
§
Henderson Horizon Pan European Equity Dividend Fund;
§
Henderson Horizon Pan European Equity Fund;
44
§
Henderson Horizon Pan European Property Equities Fund; and
§
Henderson Horizon Pan European Smaller Companies Fund.
The list of collective investment schemes may vary from time to time, as the Fund’s allocation in the funds would depend on the
Manager’s discretion.
The investment strategy employed by the Manager adheres to the Guidelines pertaining to Fund-of-Funds. As such, the
Manager shall be entitled to change their investment strategy in the event SC make any changes to the Guidelines.
Overall, the Fund’s volatility will be closely monitored to position the Fund as moderately aggressive. The portfolio is managed
with the aim to deliver positive returns in any market condition. This will be achieved by actively managing asset allocation
within the portfolio through various market cycle as well as tapping on to the skills and expertise of the top-tier fund managers in
their respective categories.
Risk Management Strategy
Risk management with an emphasis on portfolio diversification forms an integral part of our investment strategy and process.
The Manager intend to adopt an active management strategy in meeting the Fund's investment objectives. With the aim of
building a well-diversified portfolio, the Fund will be invested in at least 5 funds which have different investment strategies which
best suit their respective market condition.
As the Fund is also invested in foreign markets, there is risk associated with currency volatility. The Manager usually do not
hedge their foreign currency exposure on a daily basis unless it will assist in mitigating adverse currency movements.
The Manager diversify their investments across a range of collective investment schemes in order to minimise specific risk
exposure to any particular company or group of companies. The Fund will be invested in a minimum of five (5) collective
investment schemes in its portfolio at all times with a maximum exposure of 30% in one (1) single collective investment
scheme.
The Manager may take a temporary defensive position when it believes the markets or the economies are experiencing
excessive volatility, a prolonged general decline or when other adverse conditions may exist. The Manager reserves the right to
take defensive position by investing in cash and money market instruments. Under these circumstances, the Fund may be
unable to pursue its investment goal.
In response to adverse conditions such as market conditions or economic conditions and as part of their risk management
strategy, the Manager may utilize derivative instruments such as futures contracts but only for hedging purposes.
Performance Benchmark
The benchmark for the Fund is based on FTSE World Europe Index. Information on the benchmark of the Fund can be
obtained from Bloomberg at www.bloomberg.com
Permitted Investments
Unless otherwise prohibited by the relevant authorities or any relevant law and provided always that there are no
inconsistencies with the objective of the Fund, the Fund may invest in the following:
(a)
All type of collective investment schemes including unlisted and listed unit trusts that are regulated and
registered/authorised/approved by the relevant authorities in their home jurisdiction;
(b)
Malaysian currency deposits and placement of money at call with any banks;
(c)
Malaysian currency balances in hand, Malaysian currency deposits with commercial banks, finance companies,
investment banks and Bank Islam Malaysia Berhad including Negotiable Certificates of Deposit and placement of money
at call with investment banks;
(d)
Foreign currency deposits;
(e)
Foreign exchange spot, forward and futures contract; and
(f)
Any other form of investment as may be permitted by the SC from time to time
The above investments are subject to the limitations and restrictions under the Guidelines which must be complied with at all
times based on the most up to date value of the Fund and value of investments.
5.23
TA GLOBAL UTILITIES FUND
TA Global Utilities Fund (TAUF) will invest in a collective investment scheme, which invests in utilities securities globally. This
would include investments in collective investment scheme or similar scheme specialising in global utility equities. Returns are
expected in the form of capital appreciation and income distribution from the underlying fund.
45
Investment Objective
The Fund aims to achieve total return over a medium to long term period through investments in a collective investment
scheme, which invests in utilities securities globally.
Any changes to the investment objective of the Fund would require Unit Holder’s approval.
Investment Policy, Strategy and Asset Allocation
A minimum of 95% of the Fund’s NAV will be invested in the Luxembourg-based BNP Paribas L1 Equity World Utilities
(formerly known as Fortis L Fund Equity Utilities World Fund), the Target Fund with the balance in liquid assets.
The Target Fund invests primarily in the international shares of companies involved in the public utilities sector. These may be
electricity, gas or water companies, multi-service companies or even independent producers or distributors of energy. The
compartment management follows a bottom-up approach (selection of securities placing prime consideration on the individual
characteristics of each security). The securities are selected based on the classification of securities in the international public
services sector. The manager's role is to build a diversified portfolio based on shares presenting an attractive risk/yield ratio.
This compartment may, as opportunity presents and on an ancillary basis, invest in other financial instruments.
The Target Fund may invest no more than 20% of its NAV in emerging markets. It may invest up to a limited extent in
derivatives, including options and futures, for hedging and efficient portfolio management purposes.
Fund Allocation Strategy
A minimum of 95% of the Fund’s NAV will be invested in the Luxembourg-based BNP Paribas L1 Equitiy World Utilities
(formerly known as Fortis L Fund Equity Utilities World Fund) with the balance in liquid assets.
Solid management and sound investment performance of the Target Fund are factors that the Manager will also consider. In
evaluating the suitability of the Target Fund for investment, the Manager will conduct a review of the fund manager’s track
record, the investment objective of the Target Fund, investment policies and strategies, Target Fund performance and other
factors deemed important by the Manager.
The Target Fund may vary depending on the Manager’s discretion. We may choose to replace the Target Fund with other funds
with similar objective if, in our view, the Target Fund no longer meets the Fund’s objective, or when acting in the interest of the
Unit Holders.
The Manager will act in the best interest of Unit Holders when investing in the Target Fund. The switch to another collective
investment scheme may be performed on a staggered basis to facilitate a smoother transition. Hence, during the transition
period, the Fund’s investment strategy may differ from the stipulated investment strategies.
The investment strategy employed by the Manager adheres Guidelines pertaining to Feeder Fund. As such, the Manager shall
be entitled to change its investment strategy in the event SC makes any changes to the Guidelines.
Risk Management Strategy
Risk management with an emphasis on portfolio diversification forms an integral part of our investment strategy and process.
The Manager of the Fund intends to adopt an active management strategy in meeting the Fund's investment objectives. With
the aim of building a well-diversified portfolio, the Target Fund will be invested into a portfolio of utility securities globally.
As the Fund is also invested in foreign markets, there are risks associated with currency volatility. The Manager usually do not
hedge their foreign currency exposure on a daily basis unless it will assist in mitigating adverse currency movements.
However, the Manager may adopt a defensive strategy temporarily by maintaining higher liquid asset / cash weightings that
may be inconsistent with the Fund’s principal investment and asset allocation strategy. This defensive strategy may be
necessary to protect the Fund’s investments in response to adverse market, economic, political, or any other conditions. The
Fund’s performance will diverge from the Target Fund’s return and tracking error will increase. In addition, subject to SC’s
approval we may choose to replace the Target Fund with another fund of similar objective if, in our view, the Target Fund no
longer meets the Fund’s objective, or acting in the interest of the Unit Holders.
In response to adverse conditions such as market or economic conditions and as part of its risk management strategy, the
Manager may utilize derivative instruments such as futures contract; however, this is only for hedging and efficient portfolio
management purposes
Performance Benchmark
The benchmark for the Fund is based on the Morgan Stanley Capital International World Utilities Index – Net Index. Information
on the benchmark of the Fund can be obtained from Bloomberg at www.bloomberg.com.
Permitted Investments
Unless otherwise prohibited by the relevant authorities or any relevant law and provided always that there are no
inconsistencies with the objective of the Fund, the Fund may invest in the following:
46
(a)
All types of collective investment schemes including unlisted and listed unit trusts that are regulated and registered /
authorised / approved by the relevant authorities in their home jurisdiction;
(b)
Malaysian currency deposits and placement of money at call with any banks;
(c)
Malaysian currency balances in hand, Malaysian currency deposits with commercial banks, finance companies,
investment banka and Bank Islam Malaysia Berhad including Negotiable Certificates of Deposit and placement of money
at call with investment banks;
(d)
Foreign currency deposits;
(e)
Foreign exchange spot, forward and futures contracts; and
(f)
Any other form of investment as may be permitted by the SC from time to time.
The above investments are subject to the limitations and restrictions under the Guidelines which must be complied with at all
times based on the most up to date value of the Fund and value of investments.
BNP PARIBAS L1 EQUITY WORLD UTILITIES (TARGET FUND, FORMERLY KNOWN AS FORTIS
L1 EQUITY UTILITIES WORLD FUND)
The Management Company/Operator and the Fund Manager of the Target Fund
Fortis Investment Management Luxembourg S.A. is replaced by BNP Paribas Investment Partners Luxembourg as the Fund's
management company 2010 following the merger of the two companies. BNP Paribas Investment Partners is the dedicated
autonomous asset management business line of the BNP Paribas Group.
BNP Paribas Investment Partners offers a full range of investment management services to institutional and retail clients
around the world. Central to the way we work is the concept of partnership – both in terms of how we behave as a family of
companies and our relationships with our clients. Around 1,000 investment professionals work across our network of some 60
investment centres, each of which is a specialist in a particular asset class or type of product. With total assets under
management of EUR 533 billion as of 30 June 2010, BNP Paribas Investment Partners is the third-largest asset manager in
Europe and the ninth-largest in the world (1).
BNP Paribas Investment Partners combines the financial strength, distribution network and focus on compliance of its parent
company with the reactivity, specialization and entrepreneurial spirit of investment boutiques.
On April 1 2010, the operations of Fortis Investments were merged with those of BNP Paribas Investment Partners. Fortis
Investments’ investment experts and international locations are a natural and complementary fit with BNP Paribas Investments
Partners, whose flexible partnership model has proven successful in integrating new expertise in the past. Together, our
combined company provides clients with an even broader range of investment solutions and even better client service than
before.
BNP Paribas Investment Partners has offices in the world's major financial centres, including London, New York, Tokyo, Hong
Kong and Paris.
(1) Source: Based on the IPE Top 400, June 2010
Launch Date
The Target Fund was launched in the "Classic" class on 11 October 1999.
Investment Objective, Focus and Approach
The investment objective of the Target Fund is to increase asset value in the medium term.
This Target Fund invests at least 2/3 of its assets in shares or other similar securities of companies that conduct the majority of
their business activities in the local authorities services sector and in related or connected sectors and in derivative financial
instruments on this type of asset.
It may also invest a maximum of 1/3 of its assets in any other transferable securities, money market instruments, derivative
financial instruments or cash, provided that the investments in debt securities of any kind do not exceed 15% of its assets and
the investments in other UCITS or UCI do not exceed 10% of its assets.
Additional policies and limitations
•
Invests no more than 20% of NAV in emerging markets.
•
May invest to a limited extent in derivatives, including options and futures, for hedging and efficient portfolio management
purposes.
47
Risk Summary
All investments involve risks; there is no assurance that the Target Fund will achieve its investment objective. The value of the
Target Fund's shares will go up and down and you could incur significant losses, especially in the short term. Historic data
indicates that the Target Fund has an aggressive level of risk. Below are some of the factors that could negatively affect the
Target Fund's performance.
Equity Market Risk
Prices of equities fluctuate daily and can be influenced by many factors, such as political and economic news, corporate
earnings reports, demographic trends and catastrophic events.
Sector Investment Risk
Because equities within a given economic sector or industry tend to be affected by many of the same factors, the Target Fund
may be more volatile than a Fund that invests more broadly and may underperform the overall equity market for any given
period of time.
Additional Risk Factors include:
•
Changes in currency exchange rates could adversely affect performance at the Target Fund level.
•
The Target Fund’s strategic analysis, or the execution of it, could be flawed.
•
Certain securities could become hard to value, or to sell at a desired time and price.
•
Certain derivatives could increase the Target Fund’s volatility or expose the Target Fund to losses greater than the cost of
the derivative.
Permitted/ Authorised Investment and the Limits/ Restrictions of the Target Fund
A subfund’s investments consist exclusively of:
(a)
Transferable securities and money market instruments listed or traded on a regulated market;
(b)
Transferable securities and money market instruments traded on another market of a European Union member state
that is regulated, operating regularly, recognised and open to the public;
(c)
Transferable securities and money market instruments officially listed on a stock market in a state that is not part of the
European Union or traded on another market in one of these states that is regulated, operating regularly, recognised,
and open to the public;
(d)
Newly issued transferable securities and money market instruments, provided that:
§
the issue conditions include an undertaking that an application is to be made for official listing on a stock market or
other regulated market, operating regularly, recognised, and open to the public;
§
admission to listing is obtained within one year of the issue;
(e)
Units in UCITS authorised under Directive 85/611 and/or other UCIs, whether or not they are located in a European
Union member state, provided that:
§
these other undertakings for collective investment are authorised in accordance with legislation requiring that the
organisations are subject to supervision deemed by the CSSF as equivalent to that prescribed by EU legislation and
that there is a sufficient guarantee of cooperation between the supervisory authorities;
§
the level of protection guaranteed to holders of units in these other UCIs is equivalent to that prescribed for holders of
units in UCITS and, in particular, that the rules regarding the division of assets, borrowings, loans, and short-selling of
transferable securities and money market instruments are equivalent to the requirements of Directive 85/611;
§
the activities of these other UCIs are described in interim and annual reports enabling a valuation of the assets and
liabilities, profits and transactions for the period in question;
§
the proportion of assets in the UCITS or other UCIs that are to be acquired, which, according to their constitutional
documents, may be wholly invested in units of other UCITS or other UCIs, does not exceed 10%;
(f)
Deposits with a credit institution that are redeemable on request or that may be withdrawn and have a maturity of twelve
months or less, provided that the credit institution has its registered office in a European Union member state or, if the
registered office of the credit institution is located in another country, is subject to prudential rules deemed by the
relevant regulator as equivalent to those prescribed in EU legislation;
(g)
Derivative financial instruments, including equivalent instruments with cash settlement, which are traded on a regulated
market of the type described in clauses a), b) and c) above, and/or derivative financial instruments traded over the
counter (“OTC derivatives”), provided that:
48
§
the underlying asset consists of instruments coming under this point 1., financial indexes, interest rates, exchange or
currency rates, in which the corresponding subfund may make investments in accordance with its investment
objectives, as described in the Company’s Articles of Association.
§
the counterparties to OTC derivatives transactions are establishments subject to prudential supervision and belonging
to categories authorised by the relevant regulator, and
§
the OTC derivatives are reliably and verifiably valued on a daily basis and can, whenever the Company so chooses,
be sold, liquidated or closed by a symmetrical transaction, at any time and at their fair value;
(h)
Money market instruments other than those traded on a regulated market, and specified in Article 1 of the Luxembourg
law of 20 December 2002 concerning undertakings for collective investment, as long as the issue or issuer of these
instruments are themselves subject to regulations designed to protect investors and savings and that these instruments
are:
§
issued or guaranteed by a central, regional or local authority, by a central bank of a member state, by the European
Central Bank, by the European Union or the European Investment Bank, by a third-party state, or in the case of a
federal state, by one of the members comprising the federation, or by an international public organisation to which one
or more member states belong, or
§
issued by a company whose securities are traded on the regulated markets specified in clauses a), b) or c) above, or
§
issued or guaranteed by an establishment subject to prudential supervision according to the criteria defined by EU
law, or by an establishment that is subject to and conforms to prudential regulations deemed by the relevant regulator
as being at least as strict as those prescribed by EU legislation, or
§
issued by other entities belonging to categories approved by the relevant regulator as long as the investments in these
instruments are subject to investor-protection rules that are equivalent to those prescribed in the first, second or third
sub-clauses immediately preceding, and that the issuer is a company with capital and reserves totalling at least ten
million euros (10,000,000 euros), which presents and publishes its annual accounts in accordance with relevant
regulations, or is an entity within a group of companies including one or more listed companies whose purpose is the
financing of the group, or is an entity whose purpose is the financing of securitisation vehicles benefiting from a bank
financing line.
Target Fund’s Performance as at 31/08/2010 (Performance in Euro, Gross of Fees)
1 month
3 months
YTD
1 year
3 years
5 years
Since
Inception
Portfolio (For the period
01/09/2009 – 31/08/2010)
2.63%
3.82%
3.74%
11.39%
-20.43%
12.25%
29.16%
Benchmark (For the period
01/09/2009 – 31/08/2010)
2.62%
4.06%
6.30%
11.65%
-14.51%
14.48%
39.38%
Portfolio (Annualised)
2.63%
3.82%
3.74%
11.39%
-7.33%
2.34%
2.39%
Benchmark (Annualised)
2.62%
4.06%
6.30%
11.65%
-5.09%
2.74%
3.11%
2009
2008
2007
2006
2005
Portfolio (Yearly)
3.33%
-38.02%
31.22%
22.37%
32.40%
Benchmark (Yearly)
2.91%
-25.73%
9.58%
21.47%
30.29%
Portfolio (August to August)
11.39%
-22.21%
-8.17%
20.34%
17.23%
Benchmark (August to August)
11.65%
-17.35%
-7.36%
14.24%
17.22%
Fees and Charges
Below are the fees and charges applicable to the Fund when investing into the Target Fund.
•
Sales Charge
There is no sales charge imposed by the Target Fund on TAUF’s investments.
49
Below is an illustration of the additional impact of sales charge imposed by the Target Fund:
Illustration on how sales charge is calculated*
Investment amount
RM
10,000.00
Add Sales Charge 0.00% of investment amount (0.00% x RM10,000)
RM
Nil
Total amount payable by investor
RM
10,000.00
Total additional cost (to investors) attributable to sales charge imposed by the Target Fund
RM
Nil
*Calculation shown is for illustration purposes only
§
Annual Management Fee (AMF)
The AMF for TAUF of 1.80% p.a. of the NAV of the Fund is inclusive of AMF payable by the Fund to the Target Fund.
Below is an illustration of the additional impact of AMF imposed on the Target Fund:
Illustration on how AMF is calculated*
Total assets of the Fund as at 02/01/2010
RM
96,753,078.37
Less: Liabilities of the Fund as at 02/01/2010
RM
2,279,486.96
NAV as at 02/01/2009
RM
94,473,591.41
Annual Management Fee due to TAIM (1.80% p.a.) for the 12 months period of
01/01/2009 to 02/01/2009 (1.80% x RM 94,473,591.41)
RM
1,700,524.65
Total additional cost (due to investors) attributable to AMF imposed by the Target Fund
RM
Nil
Less
*Calculation shown is for illustration purposes only
As at 30 September 2010, the applicable AMF imposed by BNP Paribas Investment Partner is 0.90% p.a. of the Fund’s NAV,
which is included in TAUF’s AMF of 1.80% of the Fund’s NAV and is rebated to TAIM by BNP Paribas Investment Partner net
of the applicable AMF charged by BNP Paribas L1 Equitiy World Utilities (formerly known as Fortis L Fund Equity Utilities World
Fund).
There are no other fees and/or charges imposed by the Target Fund.
Designated Fund Manager of BNP Paribas L1 Equitiy World Utilities (formerly known as Fortis L Fund Equity Utilities
World Fund)
Warren Gibbon – Portfolio manager – investment experience since 2004
Warren Gibbon joined Fortis Investments in June of 2004 as an associate. In November of 2004 he transitioned to the U.S.
Equity team and began coverage of the energy and materials sectors followed by the utilities sector in early 2005. Prior to
joining Fortis, he spent 6 years in Japanese Equity Institutional Sales at Nomura International PLC, in London.
A member of the CFA Institute and the Boston Security Analysts Society, Inc., Warren is a CFA charterholder. Warren earned
his M.A. from the University of St. Andrews in Scotland. He received his M.B.A. from Cornell University.
Please note that this information is accurate as at 30 September 2010 and is subject to change without further notice.
5.24
TA DANA FOKUS
TA Dana Fokus (TADF) is a form of investment which provides a simple way to invest in Shariah-compliant securities and other
approved investments that meet requirements of the Shariah.
Investment Objective
The Fund aims to achieve total return over the medium to long-term period by investing in a focused portfolio of securities,
mainly equities that comply with Shariah requirements.
Any material changes to the investment objective of the Fund would require Unit Holders’ approval.
Note: Total return = dividend income + capital appreciation
50
Investment Policy, Strategy and Asset Allocation
The Fund’s strategy is to invest into a focused portfolio of local Shariah compliant stocks available locally that are undervalued
but offer good growth potential. It also serves to satisfy the needs of those who appreciate investments that comply with
Shariah requirements. The selection of such Shariah-compliant securities shall subscribe to the List of Shariah-compliant
Securities issued by the SACSC and/or based on the Shariah Adviser’s recommendation. The SACSC determines whether
securities that are listed on the Bursa Malaysia are in compliance with the Shariah requirements.
Depending on the investment condition, the Shariah-compliant equity exposure will typically range from 70% to 95% of the
Fund’s NAV with the balance in sukuk and Shariah-based liquid assets. The Shariah-compliant equity portion of the portfolio
will comprise up to 28 Shariah-compliant stocks. The Manager intend to adopt an active and frequent trading strategy in
meeting the Fund’s investment objective.
Investments in unlisted Shariah-compliant securities and Islamic derivatives are on the condition that they comply with Shariah
requirements. Placements under the Mudharabah principles and investments in other Shariah-based collective investment
schemes will always observe Shariah requirements. Risks associated with such investment instruments that the investment
managers propose to invest in are provided in the Risk Factors section of this Prospectus.
The investment managers may take temporary defensive positions that may be inconsistent with the Fund’s principle strategy in
attempting to respond to adverse market conditions, economic, political or any other conditions. During this temporary period,
the investment managers may reduce the Shariah-compliant equity exposure below the normal range while having higher
exposure in Islamic money market instruments and Shariah-based liquid assets.
Risk Management Strategy
The asset allocation, liquidity management, diversification and hedging strategies employed are therefore central to the efforts
to manage the risks posed to the Fund. Hence, there may be situations such as when a severe downturn in the equity markets
is expected and liquidity risks are high, that the Shariah-compliant equity exposures are reduced to below that levels indicated.
Investments in sukuk may be adversely affected if interest rates were to move up sharply. As such, the Fund’s exposure to
sukuk are managed accordingly to minimise these risks.
Participation in Islamic futures contracts and options may help to reduce the overall risk in the Fund’s portfolio by providing a
useful hedging tool against short-term market volatility. However, like other investments, it is subject to judgement and
execution errors that may adversely impact the performance of the Fund
While investments in listed Shariah-compliant warrants and option (if any) can potentially enhance the Fund’s returns, these
investments can also increase the volatility of the Fund’s returns. As such, the Fund’s investments in these instruments will be
assessed on an ongoing basis to ensure that their potential returns commensurate with the additional risk incurred as a result of
investing in these investments. The Fund’s exposure to these instruments will also be managed accordingly to minimise these
risks.
Performance Benchmark
The performance benchmark for the Fund is the FTSE Bursa Malaysia EMAS Shariah Index (FBM EMAS Shariah). Information
on the benchmark of the Fund which is readily available to most users can also be found from daily major newspapers.
Permitted Investments
Unless otherwise prohibited by the relevant authorities or any relevant law and provided always that there are no
inconsistencies with the objective of the Fund, the Fund may invest in the following:
(a)
Shariah-compliant securities listed on the Bursa Malaysia;
(b)
Units of Shariah-based property trust funds listed on the Bursa Malaysia;
(c)
Unlisted Shariah-compliant securities that have been approved by the relevant regulatory authority for listing and quotation
on the Bursa Malaysia, which are offered directly by the issuer;
(d)
Government Investment Issues;
(e)
Malaysian currency balances in hand, Shariah-based deposits (Malaysian currency) with licensed financial institutions
including Investment Certificates and placement of moneys at call with investment banks;
(f)
Islamic Accepted Bills, Cagamas Sukuk, sukuk carrying at least BBB rating by RAM or MARC
(g)
Units/ shares of other Shariah-based collective investment schemes;
(h)
Islamic futures contracts and options traded in the futures and options market of an exchange approved under the CMSA
and comply with Shariah requirements;
(i)
Lending of Shariah-compliant securities within the meaning of the Guidelines on Securities Borrowing and Lending; and
51
(j)
Any other form of investment as may be permitted by SACSC and/or the Shariah Adviser and in accordance with Shariah
requirements from time to time.
To ensure compliance with Shariah requirements, the Fund shall not invest in companies whose principal activities involve
gaming, alcoholic beverages, conventional banking, conventional insurance and financial services, non-halal food production
and processing, interest bearing instruments or other activities as determined by the SACSC and/or the Shariah Adviser from
time to time.
The above investments are subject to the limitations and restrictions under the Guidelines which must be complied with at all
times based on the most up to date value of the Fund and value of investments while adhering to Shariah requirements.
5.25
TA ALL-CYCLE COMMODITIES INCOME FUND
The Fund’s name is reflective of its investment objective and strategy whereby the Fund seeks to provide exposure to
commodity investments through Structured Products and/or options whilst allocating majority of the portfolio into fixed income
securities and money market instruments to potentially provide constant and recurring income regardless of the commodity
cycles.
Investment Objective
The Fund seeks to provide regular income and to maximise long-term capital growth whilst at the same time aims to offer
stability of capital with low to medium risk.
Any material changes to the investment objectives of the Fund would require Unit Holders’ approval
Investment Policy, Strategy, Asset Allocation
•
Fixed Income and Money Market Investments
The Fund will invest a minimum of 70% of the Fund’s NAV in fixed income securities inclusive of money market instruments.
The objective of investing into fixed income securities inclusive of money market instruments is to provide liquidity and potential
for regular income stream for the Fund.
The profile of the fixed income portfolio in terms of credit risk, interest rate risk, and the allocation mix between money market
instruments and private debt securities will be determined based on the Manager’s assessment of economic conditions. The
Manager will seek investment opportunities in Government Securities of various tenures, high-grade listed and unlisted bonds
issued by reputable companies with better than current Fixed Deposit/General Investment Account rates.
In order to ensure sufficient liquidity, minimise risk and optimise returns, the Manager shall diversify the portfolio sufficiently and
adopt proactive investment strategies. To provide for sufficient liquidity, Treasury Bills and liquid listed bonds may be
purchased. To minimise risk, Government Securities, loan stocks offered by Government sponsored companies and reputable
private companies may also be purchased. To provide higher returns, long-term Government Securities and quality loan stocks
offering high yield to maturity rates may be purchased and kept for long-term investment or redeemed upon maturity.
The fixed income securities may include Bankers Acceptance, Negotiable Certificates of Deposits and Private Debt Securities
(PDS) including Commercial Papers. For Private Debt Securities (listed and unlisted), the Manager will closely follow the PDS
rating and analyse qualitative aspects such as the cash-flow and the company’s earnings capacity. The Manager will also
concentrate on the technical aspects of the capital market such as its performance, trends and liquidity.
The Fund may also invest in short-term money market instruments comprising of Malaysian currency deposits with financial
institutions, banker’s acceptances, negotiable certificates of deposits (NCDs) and commercial papers and may also include
other liquid assets including, but not confined to, securities issued by the government or quasi-government bodies, namely
Khazanah Nasional, Cagamas and Bank Negara Malaysia, securities guaranteed by the government and private debt
securities.
In any case, the Manager will adopt a strict selection process to ensure only appropriate securities are invested in accordance
with the investment objective. The selection process is in essence a screening process that selects quality securities with risk
return profiles that match the Fund’s requirements. The Fund’s selection of private debt and money market instruments
depends largely on credit quality to assure relative certainty in principal repayment and overall total return stability.
•
The Investments in Structured Products or Options
As the Fund’s fixed income and money market strategy is aimed to provide capital stability and liquidity, main potential for
capital growth is expected to come from investments in Structured Products and/or options
At inception, the Fund intends to invest in a Structured Product with performance linked to an investment strategy or index
related to commodities .The issuer of the Structured Product will have a minimum long-term rating by any domestic or global
rating agency that indicates adequate capacity for timely payment of financial obligations.
52
The Structured Product will have daily liquidity and its price will reflect closely, the daily movement of the underlying investment,
allowing the Manager to rebalance the Fund’s position in the Structured Product on a daily basis where required due to
additional investments or redemptions from the Fund.
(a) The Investment Strategy or Index Related to Commodities
At inception, the Fund intends to invest in a Structured Product with performance linked to the CYD MarketNeutral Plus 5 Total
Return Index (“CYD Index”).
The CYD Index, developed by CYD Research GMBH, Zürich (“CYD Research”), is designed for investors who want a
commodity investment which is largely independent of the movements in commodity spot prices and wish to enter into both
long and short positions as the CYD Index simultaneously enters into both long and short positions for each commodity to
provide a market neutral exposure to commodities investments, thus making the investment largely independent of spot price.
On September 2010, the Fund further invest in a Structured Product with performance lined to the SGI Smart Market Neutral
Commodity Index (“SGI Index”).
The SGI Index aims at absolute returns taking non-directional exposures in 3 main commodity sectors: energy, industrial metals
and agriculture. The SGI Smart Market Neutral Commodity methodology looks for the best contract to roll (i.e. the one that
generates the most interesting roll yield). The methodology takes into account the seasonality effect on identified underlying
commodities for its rolling strategy. The roll of the SG dynamic methodology follows an optimized roll timing in order to ensure
liquidity and mitigates market impact.
(b) The Structured Product
Structured Products or options would generally allow the Fund to have higher exposure into the respective underlying assets
depending on the structure and market conditions at time of purchase. A higher exposure would allow the Fund to enjoy higher
total return as opposed to a direct investment into the similar underlying assets.
At inception, the Fund will invest up to a maximum of 15% of the portfolio into a Structured Product with a credible issuer for
exposure to investment strategies, indices or other investments related to commodities to provide potential capital growth. The
Structured Product will provide an enhanced exposure at a multiple of 5 times* the performance of the CYD Index and shall be
of a short, one-year tenure. The price of the Structured Product will track the daily performance of the CYD Index.
Upon maturity, the Fund’s investments in the Structured Product will be realised and returned to the Fund as cash, or rolled
over into another Structured Product with similar features.
However, the Fund’s investment in the Structured Product can be unwound daily at the prevailing price. The Structured
Product will be denominated in Singapore Dollars or any foreign currency that may change from time to time.
Additionally, the Fund will enter into an arrangement with the Structured Products and/or options issuer who will provide daily
liquidity to purchase or unwind the said Structured Products and/or options at a maximum bid-ask spread of 1.5%.
*Note: The enhancement of the Structured Product’s exposure to the CYD Index at a multiple of 5 times is an indicative feature
of the Structured Product. The Manager shall determine the actual multiple on the Commencement Date, please note that the
rate may be lower or higher than indicated.
The Fund will be subjected to the following broad asset allocation guidelines:a Percentage of the Fund’s
Asset Class
Asset Allocation as a Percentage of the Fund’s
NAV
Fixed Income securities inclusive of Money Market
Instruments
A minimum of 70% of the Fund’s NAV.
Structured Products
A maximum of 15% of the Fund’s NAV.
Options
A maximum of 10% of the Fund’s NAV
Performance Benchmark
The performance of the Fund is benchmarked against the RAM Quant Shop MGS Bond Short 1-3 Year. Information on the
benchmark can be obtained from Lipper’s website at www.lipperweb.com on a subscription basis.
Permitted Investment
The Fund may invest in any of the following investments:
Unless otherwise prohibited by the relevant authorities or any relevant law and provided always that there are no
inconsistencies with the objective of the Fund, the Fund may invest in the following:
(a)
Cash;
53
(b)
Foreign market over-the-counter (OTC) structured products, derivatives, and options;
(c)
Zero coupon negotiable instruments of deposits;
(d)
Malaysian Government Securities, Treasury Bills, Bank Negara Malaysia Certificates and Government Investment
Certificates, Cagamas Bond and bankers acceptances;
(e)
Deposits, including Negotiable Certificates of Deposits and placements of money at call with financial institutions,
whereby: “financial institutions” means institutions, if in Malaysia, a licensed bank, licensed investment bank, or an Islamic
bank. If the institution is outside Malaysia, it means any institution that is licensed/registered/approved/authorized to
provide financial services by the relevant banking regulator;
(f)
Collective investment schemes; and
(g)
Any other type of investment or investments as permitted by the SC or any other relevant authorities from time to time.
The above investments are subject to the limitations and restrictions under the Guidelines which must be complied with at all
times based on the most up to date value of the Fund and value of investments.
Risk Management Strategies
The risk management strategies undertaken by the Fund for fixed income, Structured Products and options encompasses the
following:
Fixed Income Investments
(a)
Ensure sufficient diversification within the portfolio of the fixed income investments in terms of (but not limited to) issuers
and sectors, tenures and credit rating for a sufficient dilution of portfolio concentration risk as provided under the Securities
Commission’s Guidelines and the investment restrictions and limits of the Fund;
(b)
Adhere to the applicable investment restrictions and limits to ensure that the Fund’s investment objective is achieved;
(c)
Constant monitoring of portfolio duration and cash flows to ensure the Fund consistently meet its required liquidity; and
(d)
Constant monitoring of respective markets to determine the effective asset allocations and rebalance the portfolio should
the need arises.
Structured Products and Options
(a)
Should the Structured Products and/or options issuer fall below minimum credit rating requirement, the Fund is able to
unwind the Structured Products and/or options and purchase a replacement Structured Products and/or options with
similar features from another issuer;
(b)
The Fund will enter into an arrangement with the Structured Products and/or options issuer who will provide daily liquidity
to purchase or unwind the said Structured Products and/or options at a maximum bid-ask spread of 1.5%; and
(c)
The Manager will conduct an in-house verification of the Structured Products and/or options prices furnished by the
Structured Products and/or options issuer.
5.26
TA BRIC & EMERGING MARKETS FUND
The TA BRIC & Emerging Markets Fund (TABRIC) is a Shariah-compliant Fund which aims to provide medium to long-term
capital growth from investments in a diversified portfolio of Shariah-compliant securities of emerging markets. The Fund will
employ an active management strategy for its investment in emerging markets of Shariah-compliant securities and domestic
sukuk.
Investment Objective
The Fund aims to provide medium to long-term capital growth from investments in a diversified portfolio of Shariah-compliant
securities of emerging markets.
Any material changes to the investment objective of the Fund would require Unit Holders’ approval.
Investment Policy, Strategy, Asset Allocation
To achieve its investment objective, the Fund has an active investment mandate and has the flexibility in its portfolio to move
from 70% to 100% of the Fund’s NAV in Shariah-compliant equities and equity related securities in the emerging markets. As
such, the asset allocation of the Fund will be actively managed and constantly adjusted according to economic and financial
market conditions, sentiment and future outlook across the two asset classes, namely, Shariah-compliant equities and sukuk.
54
The Fund’s asset allocation strategy is aimed to provide a platform of diversification for investors to diversify their investment
into sukuk available in Malaysia and Shariah-compliant equity and equity-related securities in the emerging markets, primarily in
the BRIC Countries.
As such, the investment team intends to adopt an active management strategy in meeting the Fund’s investment objective
which may also include increasing the primary emerging markets focus of the Fund beyond that of the BRIC Countries. Such
increase in primary geographical focus will be reflected in the Fund’s monthly Fund Fact Sheet and its annual / interim reports.
Shariah-compliant Equity Investment Strategy
The Fund will be investing a minimum of 70% of its NAV in emerging markets of Shariah-compliant equities and equity-related
securities while balance in sukuk, Islamic money market instruments and Shariah-based liquid assets. Notwithstanding the
need for a more defensive position and for potential stable and recurring income stream, the Fund’s investment in sukuk will be
raised at the expense of Shariah-compliant equity allocations to a maximum of 30% of the Fund’s NAV when the equity markets
are anticipated to be weak. Conversely, when the equity markets are expected to perform well, the Fund may take more
exposure in Shariah-compliant equities.
The Shariah-compliant equity investment of the Fund primarily focuses on a diversified portfolio of listed and unlisted Shariahcompliant equities and equity-related securities of emerging markets that are available globally. The Fund will employ a topdown country allocation approach when in the construction of its emerging markets portfolio whilst a bottom-up approach will be
used in Shariah-compliant stock selections. Generally, companies with good earnings and growth prospects over the medium
to long-term are selected. In identifying such companies, the Fund relies on fundamental research where the financial health,
industry prospects, management quality and past track records of the companies are considered.
To maintain the Fund’s primary focus in Shariah-compliant equity investments of the BRIC Countries, unless the Manager
believes it is detrimental to the Shariah-compliant equity portfolio in light of the relevant economic and market developments, at
least 60% of the Fund’s Shariah-compliant equity portfolio will be invested in the BRIC Countries at all times. To maximise
potential return, the Fund’s targeted minimum 60% of the Fund’s NAV of geographical focus into BRIC Countries may or may
not fully comprise of all of Brazil, Russia, India, and China. As per the Fund’s overall investment strategy, the construction of
the Fund’s BRIC Countries exposure will be fundamentally driven.
In constructing a diversified Shariah-compliant equity portfolio, the Fund Manager may gain additional access to Shariahcompliant equities of the emerging markets, by investing in Shariah-compliant equities and equity related securities of the
emerging markets including Shariah-compliant preference shares, rights issues, Shariah-compliant warrants or covered
Shariah-compliant warrants, Shariah-compliant equity options or Islamic futures and Shariah-compliant depository securities
e.g. American Depositary Receipts (“ADR”) or Global Depositary Receipts (“GDR”).
The Manager will ensure that the Fund’s investments in Shariah-compliant depository securities such as ADR and/or GDR are
limited to such ADR and/or GDR whose underlying securities are traded in or under the rules an eligible market where its
regulatory authority is a member of the International Organization of Securities Commissions (IOSCO) and where it has
satisfactory provisions relating to the regulation of foreign market, the general carrying on of business in the market with due
regard to the interests of public, adequacy of market information, corporate governance, disciplining of participants for conduct
inconsistent with just and equitable principles in the transaction of business, or for a contravention of, or a failure to comply with
the rules of the market, and arrangements for the unimpeded transmission of income and capital from the foreign market.
At inception, the Fund will focus primarily into Shariah-compliant equities with attractive potential returns. To minimise potential
risks, the Fund may also invest in Islamic futures and options contracts to hedge against market volatility.
Sukuk Investment Strategy
The Fund’s sukuk portfolio, which include sukuk, Islamic money market instruments and Shariah-based liquid assets, will be
limited to a maximum limit of 30% of the Fund’s NAV and will consist of locally issued sukuk and Islamic money market
instruments and Shariah-based liquid assets available locally. The Fund will invests in sukuk carrying at least “A3 and P1”
rating by the RAM Rating Services Berhad (RAM) or Malaysian Rating Corporation (MARC) or equivalent by Moody’s or
Standard & Poor’s; except for sukuk issued or guaranteed by the Malaysian government, Bank Negara Malaysia, any other
government related and quasi-government bodies and licensed financial institutions, where investments in unrated sukuk is
allowed.
The sukuk portfolio is maintained mainly as a hedge against price volatility of the Fund’s investments in the emerging markets
as well as to cater the need for more diversified portfolio with focus on the credit qualities of securities in the sukuk portfolio.
The sukuk portfolio’s construction process is research driven and based on macroeconomic analysis, profit rate analysis, credit
analysis and yield spread analysis. Other than the development of a broad asset allocation model, contributions will be made
via active management to capitalise on changes in profit rates, inter-sector yield spreads and yield spreads of specific sukuk
External Sukuk Investment Manager
In managing this Fund, the Manager has delegated the investment management function of the Fund’s investments in
approved domestic markets to OpusAM, who will manage the relevant portion of the assets of the Fund in accordance with the
55
investment objective of the Fund and the Deed, and subject to the Capital Markets and Services Act 2007, the Guidelines on
Unit Trust Funds and any practice notes or directives issued by the Securities Commission from time to time, the relevant
securities laws as well as the internal policies, procedures and directions of the Investment Committee of the Fund.
OpusAM is licensed by Securities Commission to provide fund management services and futures fund management services
pursuant to the Capital Markets and Services Act 2007 and was incorporated on 24 December 1996 as Lotus Asset
Management Sdn Bhd. On 8 February 2002, its name was changed to Merican & Partners Asset Management Sdn Bhd, before
it assumed its present name on 7 March 2005.
As at 30 September 2010, the total assets under management of OpusAM stand at approximately RM 1.54billion. The
designated person responsible for the management of the sukuk portfolio is Mr. Siaw Wei Tang (Managing Director/Chief
Investment Officer).
The Manager and/or the External Investment Manager may take temporary defensive positions that may be inconsistent with
the Fund’s principal strategy in attempting to respond to adverse economic, political or any other market conditions. In such
circumstances, the Manager and/or the External Investment Manager may reallocate up to 100% of the Fund’s Shariahcompliant equity investments into other asset classes such as sukuk, Islamic money market instruments, cash and Shariahbased deposits with any financial institutions, which are defensive in nature. Provided always that all investments of the Fund
are Shariah-compliant.
The Fund will be subjected to the following broad asset allocation guidelines:
Asset Class
Asset Allocation as a Percentage of the Fund’s NAV
Shariah-compliant Equity & Equity-related
Securities
Minimum : 70% of the Fund’s NAV
Sukuk
Maximum : 30% of the Fund’s NAV
The Fund may invest the balance to Shariah-based liquid asset to provide liquidity to meet redemption requests without
jeopardising the Fund’s performance.
Risk Management Strategy
The asset allocation, liquidity management, diversification and hedging strategies employed are central to the efforts to manage
the risks posed to the Fund. Hence, there may be situations such as when a severe downturn in the equity markets is expected
and liquidity risks are high, that the Shariah-compliant equity exposures will be reduced to below that levels indicated.
Investments in sukuk may be adversely affected if interest rates were to move up sharply. As such, the Fund’s exposure to
sukuk are managed accordingly to minimise these risks.
Participation in Islamic futures contracts and options may help to reduce the overall risk in the Fund’s portfolio by providing a
useful hedging tool against short-term market volatility. However, like other investments, it is subject to judgement and
execution errors that may adversely impact the performance of the Fund.
While investments in listed Shariah-compliant equity-related securities, Shariah-compliant warrants and Islamic option (if any)
can potentially enhance the Fund’s returns, these investments can also increase the volatility of the Fund’s returns. As such,
the Fund’s investments in these Shariah-compliant instruments will be assessed on an ongoing basis to ensure that their
potential returns commensurate with the additional risk incurred as a result of investing in these investments. The Fund’s
exposure to these Shariah-compliant instruments will also be managed accordingly to minimise these risks.
Performance Benchmark
As the Fund will be invested in Shariah-compliant equity & equity-related securities and sukuk, the benchmark for the Fund will
be based on the following:
• MSCI BRIC Islamic Index – 70% of the Fund’s NAV; and
• Maybank 12-month General Investment Account (GIA) rate – 30% of the Fund’s NAV.
Information on the benchmark of the Fund can be obtained from local national newspapers and Bloomberg at
www.bloomberg.com
Permitted Investment
Unless otherwise prohibited by the relevant authorities or any relevant law and provided always that there are no
inconsistencies with the objective of the Fund, the Fund may invest in the following:
(a)
Shariah-compliant securities listed on foreign stock exchanges, including American Depository Receipts (ADRs) and
Global Depository Receipts (GDRs);
(b)
Shariah-compliant securities of Malaysian companies listed on the Bursa Malaysia;
56
(c)
Units of Shariah-based property trust funds listed on the Bursa Malaysia and other foreign markets which are permitted by
the relevant authorities;
(d)
Unlisted Shariah-compliant securities that have been permitted by the relevant authorities for listing and quotation on the
Bursa Malaysia and other foreign markets, which are offered directly by the company approved for listing, by way of
private placement or on a tender basis;
(e)
Malaysian Government Investment Issues, Bank Negara Monetary Notes-i and any other government Islamic papers;
(f)
Malaysian currency balances in hand, Malaysian currency Shariah-based deposits with licensed financial institutions
including Investment Certificates and placement of moneys at call with investment banks;
(g)
Multi-currency Islamic money market accounts;
(h)
All domestic sukuk that are rated at least “A3 and P1” rating by the RAM Rating Services Berhad (RAM) or Malaysian
Rating Corporation (MARC) or equivalent by Moody’s or Standard & Poor’s; except for sukuk issued or guaranteed by the
Malaysian government, Bank Negara Malaysia, any other government related and quasi- government bodies and licensed
financial institutions, where unrated sukuk is allowed;
(i)
Listed and unlisted Shariah-based collective investment schemes that are regulated/ registered/ authorised or permitted
by the relevant authorities in their home jurisdiction;
(j)
Islamic futures contracts subject to the conditions prescribed by the relevant laws;
(k)
Listed and unlisted sukuk issued by corportates, banks, financial institutions, government and quasi government including
exchangeable sukuk and convertible sukuk;
(l)
Islamic Repurchase agreements of any sukuk mentioned above;
(m) Tradable Islamic money-market instruments in the money market; and
(n)
Any other form of Shariah-compliant investment as may be permitted by the relevant authorities from time to time.
To ensure compliance with Shariah requirements, the Fund shall not invest in companies whose principal activities involve
gaming, alcoholic beverages, conventional banking, conventional insurance and financial services, non-halal food production
and processing, interest bearing instruments or other activities as determined by the SACSC and/or the Shariah Adviser from
time to time.
The above investments are subject to the limitations and restrictions under the Guidelines which must be complied with at all
times based on the most up to date value of the Fund and value of investments.
5.27
INVESTMENT RESTRICTIONS AND LIMITS
The Funds (except for TACP, TAICP, TAGAAF, TAEURO, TAUF, TAACCI and TABRIC) will be managed in accordance with
the following list of investment restrictions and limits:
§
The value of the Fund’s investments in the ordinary shares issued by any single issuer must not exceed 10% of the Fund’s
NAV;
§
The value of the Fund’s investments in transferable securities and money market instruments issued by any single issuer
must not exceed 15% of the Fund’s NAV;
§
The value of the Fund’s placement in deposits with any single institution must not exceed 20% of the Fund’s NAV;
§
For investment in derivatives, the exposure to the underlying assets must not exceed the investment spread limits
stipulated in this schedule and the value of a Fund’s OTC derivative transaction with any single counter-party must not
exceed 10% of the Fund’s NAV;
§
The value of the 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;
§
The value of the Fund’s investments in units / shares of any collective investment scheme must not exceed 20% of the
Fund’s NAV;
§
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;
§
The Fund’s investments in transferable securities (other than debentures) of any single issuer must not exceed 10% of the
security issued;
§
The Fund’s investments in debentures must not exceed 20% of the debentures issued by any single issuer;
57
§
The Fund’s investments in money market instruments must not exceed 10% of the instruments issued by any single
issuer. However, this limit is not applicable to money market instruments that do not have a pre-determined issue size.
§
There will be no restrictions or limits for securities issued or guaranteed by the Malaysian Government or Bank Negara
Malaysia;
§
The value of the Fund’s investments in unlisted securities must not exceed 10% of the Fund’s NAV. This limit is not
applicable to the Fund’s investments in unlisted securities that are equities not listed for trading in a stock market of a
stock exchange, or an exempt stock market declared, by the Minister under the CMSA, but have been approved for such
listing and offered directly to the Fund by the issuer;
§
The Fund’s exposure from its derivatives positions must not exceed the Fund’s NAV at all times
§
The Fund’s investments in collective investment schemes must not exceed 25% of the units/shares in any one collective
investment schemes.
As for TAGF, TACF, TAIF, TIF, TASF, TAHGF and TADO, these Funds may invest up to 30% of the respective Fund’s NAV in
foreign markets, or any other limits as determined by relevant authorities.
As for TACP and TAICP these Funds will be managed in accordance with the following list of investment restrictions and limits:
§
The value of the Fund’s investments in permitted investments must not be less than 90% of the Fund’s NAV;
§
The value of the Fund’s investments in permitted investments which have a remaining maturity period of not more than
365 days must not be less than 90% of the Fund’s NAV;
§
The value of the Fund’s investments in permitted investments which have a remaining maturity period of more than 365
days but fewer than 732 days must not exceed 10% of the Fund’s NAV;
§
The Fund’s exposure from its derivatives positions must not exceed the Fund’s NAV at all times;
§
The value of the Fund’s investments in debentures and money market instruments issued by any single issuer must not
exceed 20% of the Fund’s NAV. However, the single issuer limit may be increased to 30% of the Fund’s NAV if the
debentures are rated by any global or domestic rating agency to be of the best quality and offer highest safety for timely
payment of interest and principal;
§
The value of the Fund’s investments in debentures and money market instruments issued by any group of companies
must not exceed 30% of the Fund’s NAV;
§
The value of the Fund’s placement in deposits with any single financial institution must not exceed 20% of the Fund’s
NAV;
§
The Fund’s investments in debentures must not exceed 20% of the securities issued by any single issuer;
§
The Fund’s investments in money market instruments must not exceed 20% of the instruments issued by any single
issuer;
§
The Fund’s investments in collective investment schemes must not exceed 25% of the units/shares in any collective
investment scheme;
§
There will be no restriction or limits for securities issued or guaranteed by the Malaysian Government or Bank Negara
Malaysia.
Liquid assets must be held in the form of cash, deposits/Shariah-based deposits with licensed institutions and/or other
institutions licensed or approved to accept deposits/Shariah-based deposits, or any highly liquid instrument that is capable of
being converted into cash within seven (7) days (as may be approved by the Trustee).
As for TAGAAF and TAEURO these Funds will be managed in accordance with the following list of investment restrictions and
limits:
Collective Investment Schemes:
(a)
(b)
The Fund must not invest in
(i)
a Fund-of Funds;
(ii)
a Feeder Fund; and
(iii)
any sub-fund of an umbrella scheme which is a Fund-of-Funds or a Feeder Fund
There must not be any cross-holding between Fund-of-Funds and its sub-funds, or between the sub-funds of Fund-ofFunds, where the Funds are managed and administered by the same management company, or where the sub-funds
are managed by and administered by any party related to the management company or any delegate thereof;
58
(c)
The Fund must be invested in a minimum of five (5) collective investment schemes at all times;
(d)
The value of the Fund’s investments in units/shares of any collective investment scheme must not exceed 30% of the
Fund’s NAV; and
(e)
The Fund’s investments in collective investment schemes must not exceed 25% of the units/shares in any collective
investment scheme.
As for TAUF, this Fund will be managed in accordance with the following list of investment restrictions and limits:
Collective Investment Schemes:
The Fund must not invest in
(i)
a Fund-of-Funds;
(ii)
a Feeder Fund; and
(iii)
any sub-fund of an umbrella scheme which is a Fund-of-Funds or a Feeder Fund.
Derivatives and their use in the Fund:
Derivatives instruments (or simply derivatives) is a financial instrument which derives its value from the value of some other
financial instrument or variable. The most commonly used derivatives include futures contracts, options and forward rate
agreements.
As per the Guidelines, the participation of the Fund in any futures contract other than a futures option or an eligible exchange
traded option is for hedging purposes only. The Fund is not allowed to use derivatives for gearing its exposure to a market.
In any case, the net market exposure of the futures contract position must not exceed the Fund’s NAV.
Liquid Assets:
The Manager and the Trustee will hold a certain amount of liquid assets agreed by both parties from time to time.
The aforesaid investment restrictions and limits have to be complied with at all times based on the most up to date valuation of
the investments and instruments of the Fund. However, a 5% allowance in excess of any restriction or limit may be permitted
where the restriction or limit is breached through an appreciation or depreciation of the Fund’s NAV. In this regard, no further
acquisition of the particular securities involved shall be made and the Manager shall, within a reasonable period of not more
than three (3) months from the date of the breach, take all necessary steps and actions to rectify the breach. The above
investment restriction and limits, however are subject to any changes as may be imposed by the Guidelines from time to time.
As for TAACCI, this Fund will be managed in accordance with the following list of investment restrictions and limits:
(a)
The Structured Product is issued by a financial institution with a minimum long-term rating by any domestic or global rating
agency that indicates adequate capacity for timely payment of financial obligations, and/or;
(b)
The option is issued by a financial institution with a minimum long-term rating provided by any domestic or global rating
agency that indicates strong capacity for timely payment of financial obligations;
(c)
If a rated corporate issuer is downgraded to below the minimum rating as stated above in (a) and (b) and it causes the
investment limit to be breached, the Manager should use its best efforts to liquidate the option within 6 months and finding
alternative option with similar investment objective;
(d)
The value of the Fund’s holding in Structured Product must not exceed 15% of the Fund’s NAV;
(e)
The Fund’s exposure from Structured Products position should not exceed Fund’s NAV at all times;
(f)
The value of the Fund’s investments in transferable securities and money market instruments issued by any single issuer
must not exceed 15% of the Fund’s NAV;
(g)
The value of the Fund’s placement in deposits with any single institution must not exceed 20% of the Fund’s NAV;
(h)
For investment in derivatives, the exposure to the underlying assets must not exceed the investment spread limits
stipulated in this schedule and the value of a Fund’s over-the-counter (OTC) derivative transaction with any single counterparty must not exceed 10% of the Fund’s NAV;
(i)
The aggregate value of a Fund’s investments in transferable securities, money market instruments, deposits, OTC and
derivatives issued by or placed with (as the case may be) any single issuer/institution must not exceed 25% of the Fund’s
NAV;
(j)
The value of the Fund’s investments in units / shares of any collective investment scheme must not exceed 20% of the
Fund’s NAV;
59
(k)
The Fund’s investments in money market instruments must not exceed 10% of the instruments issued by any single
issuer. However, this limit is not applicable to money market instruments that do not have a pre-determined issue size;
(l)
The Fund’s investments in collective investment scheme must not exceed 25% of the units/shares in any collective
investment scheme.
Policy On Gearing And Liquid Assets
The Fund may borrow cash for the purpose of meeting repurchase requests for units and for short-term bridging requirements.
However, the Manager should ensure that:(i)
The Fund’s cash borrowing is only on a temporary basis and that borrowings are not persistent;
(ii)
The borrowing period should not exceed one month;
(iii) The aggregate borrowings of the Fund should not exceed 10% of the Fund’s NAV at the time the borrowing is
incurred; and
(iv) The Fund may only borrow from financial institutions.
Except as otherwise provided under the Guidelines, none of the cash or investments of the Fund may be lent. Further, the Fund
may not assume, guarantee, endorse or otherwise become directly or contingently liable for or in connection with any obligation
or indebtedness of any person. For Shariah-based funds, the funds must seek for an Islamic financing facility to satisfy the
above conditions.
The above mentioned limits and restrictions will be complied with at all times based on the up-to-date value of the Fund, and
the value of their investments and instruments, unless the SC grants the exemption or variation.
However, a 5% allowance in excess of any limits or restrictions may be permitted where the limit or restriction is breached
through the appreciation or depreciation in value of the Fund due to market movements.
The Manager should not make any further acquisitions to which the relevant limit is breached and should within a reasonable
period of not more than (3) three months from the date of such breach take all necessary steps and actions to rectify the
breach. Such limits and restrictions, however, do not apply to securities that are issued or guaranteed by the Government or
Bank Negara Malaysia.
5.28
RISK MANAGEMENT STRATEGIES
Our risk management strategy is to conduct fundamental analysis of economic, political and social factors, on a local and global
basis, to evaluate their likely effects on the performance of equity, fixed income/ sukuk, money markets and sectors.
Individual stocks and fixed income securities/ sukuk are further screened by detailed analysis of each security and its
underlying business and fundamentals. For TACP and TAICP, individual money market and debt securities/ sukuk are further
screened by detailed analysis of each security and its underlying business and fundamentals. For Shariah-based Funds, further
consideration is given to the nature of the investments to ensure that they are fully in compliance with Shariah requirements.
In terms of the Funds’ portfolio, risk is controlled by strict diversification on both a sector and individual investment instrument
basis. We also use active asset allocation to reduce or increase the Funds’ exposure to various investment instruments
depending on the risk reward potential for each investment. This may include the use of futures for hedging purposes, as it can
be a more efficient portfolio risk management strategy. Specific risk management strategies for Fund risks can also be found on
pages 20 to 25 of this Prospectus.
The Funds except TACP and TAICP will be guided by the following general principles to control company specific risk*:
•
Ensure that the risk taken for any specific security is not too large and a reasonable spread of active risk is maintained
across different sectors. Investments that have low contributions to active risk will have larger position limits than
investments which have high contributions to active risk. The limit per security will be within the limit set by the Investment
Committee in compliance with the Guidelines.
•
Ensure that the risk associated with the overall position taken for the group of companies or the same industries is not too
large and within limit set by the Securities Commission.
In addition, the following investment procedures and internal controls are designed to control operational risk** for all Funds
including TACP and TAICP:
•
There is strict division of duties between securities trading, confirmation and settlement.
•
There are rules on trading and preventing employees to act on insider information. The Compliance Department will
monitor compliance and enforce disciplinary actions on any employee who has breached the code of conduct and
compliance.
60
•
There is daily computation of the respective Fund’s NAV and independent verification and reconciliation.
•
There are procedures for Senior Management, Trustees, Investment Committee and the Board of Directors to be informed
promptly, to investigate and to ensure timely and appropriate rectification of any deviation and non-compliance that may
arise.
•
There are limits to the placement maintained at financial institutions to manage credit risk exposure.
•
There are limits on shares traded with stock brokers to manage settlement risk exposure.
•
There are limits and criteria set on credit rating of debt securities.
*
Company specific risk refers to external risk associated with the listed company’s share price movements.
**
Operational risk refers to the internal risk associated with inadequate systems and controls.
Specific Risk Management For Foreign Investments
Country and Foreign Exchange Risks
Diversification of the foreign portion of the portfolio across several country markets and currencies will facilitate risk
management of country risk (includes market, political and regulatory risks) and foreign exchange risk. This is further enhanced
through the implementation of monitoring processes to identify changes in country specific risk premia arising from changes in
market, political and/or regulatory environment of the countries to which the Funds have investment exposure.
Operational Risk
Operational risk arising from international settlement and custody risks are managed through the appointment of an
international global custodian
5.29
VALUATIONS FOR ALL FUNDS
In undertaking any of its investments, the Manager will ensure that all the assets of the Funds are valued in accordance with
their respective asset classes and will be valued at fair value in compliance with SC’s valuation guidelines at all times. A
valuation or revaluation of the Funds may be made at any time provided that it shall be done at least once on each Business
Day. Valuation and revaluation of authorised investment will be carried out in accordance with the Deed.
The bases of valuations of the securities/instruments are as follows:
Listed Securities
In respect of securities listed (including suspended counters) on Bursa Malaysia, the securities will be valued based on the last
done market price, which is the price at the end of a particular Business Day.
However, the securities shall be valued at fair value, as determined in good faith by the Management Company, based on the
methods or bases approved by the Trustee after appropriate technical consultation if:
•
the valuation based on the market price does not represent the fair value of the securities or;
•
no market price is available, including 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.
Listed Foreign Securities
Investments of the Fund in listed foreign securities, which are quoted on foreign stock exchanges, will be valued based on the
market price of the securities at the close of the trading day of the foreign stock exchanges. Accordingly, the valuation point of
the Fund will be at the close of Bursa Malaysia or the close of the market in the foreign markets in which the Fund invested in,
whichever is later. The securities prices would be obtained from Financial Information Service Providers such as Bloomberg
and / or Reuters.
Unlisted Securities/ sukuk
Funds investing in Ringgit-denominated bonds/ sukuk shall value bond/ sukuk portfolios on daily basis using fair value prices
quoted by a bond pricing agency (BPA) registered with the SC.
Where a management company is of the view that the price quoted by bond pricing agency for a specific bond/ sukuk differs
from the “market price” by more than 20 basis points, the management company may use the “market price”, provided that the
management company:
(i) records its basis for using a non-BPA price;
(ii) obtains necessary internal approvals to use the non-BPA price; and
61
(iii) keeps an audit trail of all decisions and basis for adopting the “market yield”.
Collective Investment Schemes
The valuation of each unit or share in any collective investment scheme will be based on the last published NAV price.
Liquid Assets
Liquid assets placed with banks and other financial institutions and bank bills will be valued on each day with reference to the
nominal values and the accrued interest thereon for the relevant period.
Futures and Options Contracts
All futures and options contracts will be valued base on the last done market price.
Listed Fixed Income Securities/ Sukuk
For listed fixed income securities/ sukuk, the last traded prices quoted on a recognised exchange will be used. For any other
investments, it will be based on the fair value as determined in good faith by the Manager, on methods or bases which have
been verified by the Auditor of the Fund and approved by the Trustee.
Structured Product and/ or Options
The valuation of the Structured Product and/ or Options is marked to market on daily basis using valuation prices quoted by
Structured Product and/ or Options issuer. The Manager will verify the reasonableness of the prices of the Structured Products
and/ or Options provided by the provider via an in-house verification procedure which is in place and have been verified by the
Auditor of the Fund and approved by the Trustee to ensure reasonable valuation of the Structured Products and/ or Options.
Note:
For Funds with foreign investment, the valuation point may be after the close of Bursa Malaysia but not later than 5:00 p.m. on
the following day in which the Manager is open for business. As a result of having a valuation point on the following day, the
daily prices of all Funds with foreign investment will not be published on the next Business Day but instead will be published the
next following Business Day (i.e. the prices will be for the 2 preceding days).
Illustration: For the market close of 17 November 2010, the valuation will be done on the next day when the Manager is open
for trading, that is, 18 November 2010. The newspaper publication date for the prices as at 17 November 2010 will be 19
November 2010.
Investors may obtain the latest prices of units of the Fund by contacting the Manager directly. The Manager may declare certain
Business Days to be a Non-Business Day, although the Bursa Malaysia is open for business, if some of the foreign markets in
which the Fund is invested therein are closed for business. This is to ensure that investors will be given a fair valuation of the
Fund at all times, be it when buying or redeeming units of the Fund.
Incorrect Pricing Of Scheme Units
The duty of the Manager includes taking all reasonable steps and exercising due diligence to ensure that the Fund or the units
of the Funds are correctly valued and/or priced, in line with the provisions of valuation of the Guidelines. The duty of the
Manager includes taking any immediate remedial action to rectify any incorrect valuation and/or pricing of the Fund or the units
of the Funds. Where the breach relates to the incorrect pricing of units, rectification must extend to the reimbursement of money
by the Manager to the Funds and/or to the Unit Holders and/or to the former Unit Holders; or by the Funds to the Manager.
Rectification need not, unless the Trustee otherwise directs, extend to any reimbursement where it appears to the Trustee that
the incorrect pricing is of minimal significance provided always that the Trustee shall not consider an incorrect pricing of Units to
be of minimal significance if the error involves a discrepancy of 0.5% or more of the NAV per Unit or RM10.00 or more per unit
Holder per sale or repurchase of Units.
If there is more than one error occurring on a single day, it is the net effect of all errors that should be considered at the end of
that day. If a single error is protracted over successive days, the threshold is applicable for each day separately.
5.30
CLEANSING/ PURIFICATION PROCESS FOR TAIF, TADO, TAICP, TAIB, TADF AND
TABRIC (“THE FUNDS”)
Cleansing Process For The Funds
(a)
Wrong Investment
Refers to Shariah non-compliant investment made by the Fund Manager. The said investment will be disposed/withdrawn
of with immediate effect. In the event of the investment resulted in gain (through capital gain and/or dividend), the gain is
to be channelled to baitulmal or any other charitable bodies as advised by the Shariah Adviser. If the disposal of the
investment resulted in losses to the Fund, the losses are to be borne by the Fund Manager.
62
All costs incurred during the acquisition and disposal process, either the investment resulted in either gain or losses, are to
be borne by the Fund Manager.
(b)
Reclassification of Shariah Status of the Funds’ Investment
A security which was reclassified as Shariah non-compliant by the Shariah Advisory Council of the Securities Commission
(“SACSC”), the Shariah Adviser or the Shariah Boards of the relevant Islamic Indices. The said security will be disposed
soonest practical, once the total amount of dividends received and the market value held equal the original investment
costs.
Any capital gains arising from the disposal of the Shariah non-compliant security made at the time of the announcement
can be kept by the Fund. However, any excess capital gains derived from the disposal after the announcement day at a
market price that is higher than the closing price on the announcement day is to be channelled to baitulmal or any
charitable bodies as advised by the Shariah Adviser.
Purification process for the Funds
(a)
Zakat For the Funds
The Funds do not pay zakat on behalf of Muslim individuals and Islamic legal entities who are investors of the Funds.
Thus, investors are advised to pay zakat on their own.
63
6. PERFORMANCE OF THE FUNDS
6.1
TA GROWTH FUND
Average Total Returns of the Fund
Period
30 June
30 June
Fund
Benchmark
1 year
2009
2010
18.29
23.54
3 years
2007
2010
2.48
-0.78
5 years
2005
2010
10.39
8.70
10 years
1999
2010
7.56
4.80
Annual Total Returns of the Fund
Period
30 June
30 June
Fund
Benchmark
2009
2010
18.29
23.54
2008
2009
3.15
-8.89
2007
2008
-11.78
-13.23
2006
2007
42.00
49.11
2005
2006
7.26
4.22
2004
2005
0.36
5.05
2003
2004
18.88
17.27
2002
2003
3.42
-1.93
2001
2002
2000
2001
Source: Lipper Hindsight (based on NAV to NAV with distributions reinvested)
Distribution of Income
Financial Year Ended 30 June
Gross distribution per unit (sen)
Net distribution per unit (sen)
(i) Unit split
35.81
26.67
-24.54
-31.17
2010
2009
2008
(RM)
(RM)
(RM)
5.00
4.96
3.50
3.14
3.50
3.32
Nil
Nil
Nil
(Distribution of income was made in the form of cash)
Performance and Investment Strategy for last Financial Year
The Fund started its financial year on a very strong note, boosted by expectations of a global economic recovery. The US and
global markets made a turn for the better in the second quarter of 2000 and rallied after these countries made concerted efforts
to rescue their respective economies with large stimulus packages. This was later supported by better than expected corporate
results that re-affirmed investors’ positive sentiment.
The Fund increased its equity weighting to above 80% level by increasing exposure to selective sectors that reflect themes
already in place in the Fund. The Fund accumulated telco, gaming and banking stocks given the favourable outlook on these
sectors. Meantime, the Fund took profit on construction stocks and trimmed down exposure on the underperforming utility
stocks. As part of the risk management policy, the Fund has consciously avoided wild fluctuations in equity exposure to
minimise volatility in the Fund’s performance.
The Fund was managed within its investment objective for the financial year under review and met its objective of providing
capital return. In addition, the Fund provided income distribution as at end of its financial year. The Fund achieved an absolute
return of 18.29%, which unfortunately underperformed its benchmark FTSE Bursa Malaysia Top 100 Index’s return of +23.54%.
This was largely due to the Fund being invested more into growth stocks that are overpriced compared to index stocks.
Portfolio Turnover Ratio
Period
2010
2009
2008
Portfolio Turnover (times)
1.44
1.30
1.48
The portfolio turnover ratio for the financial year ended 30 June 2010 is 1.44 times (2009: 1.30 times). It is higher compared to
the previous year’s result of 1.30 times mainly due to a increase in the average transactional value of the Fund compared with
the increase in the average NAV of the Fund.
64
Asset Allocation
The Fund’s asset allocation for the last three financial year is as follows:
Period
2010
Asset Allocation
2009
2008
•
72.5% in equities
•
82.2% in equities
•
•
1.7% in unquoted
•
1.2% in unquoted
•
bonds
•
bonds
25.8% in cash
•
58.3% in equities
4.1% in unquoted
bonds
16.6% in cash
•
37.6% in cash
Asset allocation during the financial year under review was primarily in equity, supplemented by investments in unquoted
corporate bonds with the remaining in cash. During the financial year under review the Fund’s equity exposure averaged at
84.9%.
The benchmark used by the investment manager for the Fund is the FTSE Bursa Malaysia Top 100 Index (FBM Top 100).
Management Expense Ratio (MER)
Financial Period Ending 30 June
2010
2009
2008
MER (%)
1.71
1.74
1.70
PAST PERFORMANCE OF THE FUND IS NOT AN INDICATION OF FUTURE PERFORMANCE
6.2
TA COMET FUND
Average Total Returns of the Fund
Period
30 Sep
30 Sep
Fund
Benchmark
1 year
2009
2010
16.58
21.16
3 years
2007
2010
0.91
2.92
5 years
2005
2010
12.58
10.49
Since Inception
1 Oct 1999
2010
10.29
6.22
Annual Total Returns of the Fund
Period
Since Inception
30 Sep
30 Sep
Fund
Benchmark
2009
2010
16.58
21.16
2008
2009
18.63
19.86
2007
2008
-25.70
-24.91
2006
2007
42.17
43.49
2005
2006
23.84
5.29
2004
2005
-4.23
2.72
2003
2004
-0.48
12.56
2002
2003
31.09
16.36
2001
2002
37.80
6.01
2000
2001
-9.47
-17.90
1 Oct 1999
2000
4.17
0.67
Source: Lipper Hindsight (based on NAV to NAV with distributions reinvested)
Distribution of Income
Financial Year Ended 30 September
Gross distribution per unit (sen)
Net distribution per unit (sen)
(i) Unit split
2010*
2009
2008
(RM)
(RM)
(RM)
4.00
3.75
Nil
Nil
3.00
2.86
Nil
1:10
Nil
(Distribution of income was made in the form of cash)
*Please see Unaudited Financial Highlights section on page 99.
65
Performance and Investment Strategy for last Financial Year
The Fund started its financial year under a continuous strong sentiment and recovery of the market, boosted by expectations of
global economic recovery. The US and global markets made a turn for the better in the second quarter of 2009 and rallied after
these countries made concerted efforts to rescue their respective economies with large stimulus packages. This was later
supported by better than expected corporate results that re-affirmed investors’ positive sentiment.
The fund was highly invested at average 85% of its NAV for the financial year under review. Hence, the fund capitalised on the
strong market performance. The Fund has been accumulating stocks when the leading market indicators showed signs of
recovery. The Fund increased its exposure to plantation, banking, construction and oil & gas stocks given the favourable
outlook on these sectors and the equity exposure reached as high as 91% of its NAV. The fund continued to have high
exposure in equity to ride on the uptrend economic and market recovery at the end of the financial year under review. The
commendable performance of the fund was also due to the out-performance of stocks such as Axiata, Genting, IOI Corp, SIME,
Maybank and UEM LAND. Meantime, the Fund took profit on technology stocks and trimmed down exposure on the
underperforming utility stocks. As part of the risk management policy, the Fund has consciously avoided wild fluctuation in
equity exposure to minimise volatility in the Fund’s performance.
The fund was managed within its investment objective for the financial year under review and met its objective of providing
capital returns. In addition, the fund provided income distribution as at end of its financial year. The fund achieved a solid
absolute return of 16.58% which unfortunately underperformed its benchmark FTSE Bursa Malaysia Top 100 Index’s return of
+21.16%. This was largely due to the Fund being invested more into growth stocks that overpriced index stocks.
Portfolio Turnover Ratio
Period
2010
2009
2008
Portfolio Turnover (times)
1.49
1.58
1.47
The portfolio turnover ratio for the financial year ended 30 September 2010 is 1.49 times (2009: 1.58 times). It is lower
compared to the previous year’s result of 1.58 times mainly due to a decrease in the average transactional value of the Fund
compared with the decrease in the average NAV of the Fund.
Asset Allocation
The Fund’s asset allocation for the last three financial year is as follows:
Period
2010
2009
2008
•
86.14% in equities
•
85.94% in equities
•
13.86% in cash
•
14.06% in cash
Asset Allocation
•
•
•
49.4% in equities
4.52% in unquoted
corporate bond
46.08% in cash
Asset allocation during the financial year under review was primarily in equities. The cash portion of the Fund was mainly
invested in money market instruments intended to generate additional returns with low risk. During the financial period under
review, the Fund’s equity exposure averaged at 85% of its NAV.
The benchmark used by the investment manager for the Fund is FTSE Bursa Malaysia Emas Index (FBM Emas).
Management Expense Ratio (MER)
Financial Period Ending 30 September
2010
2009
2008
MER (%)
1.73
1.77
1.72
PAST PERFORMANCE OF THE FUND IS NOT AN INDICATION OF FUTURE PERFORMANCE
6.3
TA ISLAMIC FUND
Average Total Returns of the Fund
Period
31 May
31 May
Fund
Benchmark
1 year
2009
2010
14.13
16.26
3 years
2007
2010
2.26
-2.68
2005
2010
10.57
8.42
24 Apr 2001
2010
11.41
7.84
5 years
Since Inception
66
Annual Total Returns of the Fund
Period
Since Inception
31 May
31 May
Fund
2009
2010
14.22
Benchmark
16.35
2008
2009
-2.24
-19.04
2007
2008
-4.23
-2.68
2006
2007
42.16
51.12
2005
2006
8.72
8.16
2004
2005
-3.99
-1.39
2003
2004
36.72
19.26
2002
2003
-12.05
-9.58
24 Apr 2001
2002
40.15
24.84
Source: Lipper Hindsight (based on NAV to NAV with distributions reinvested)
Distribution of Income
Financial Year Ended 31 May
2010
2009
2008
(RM)
(RM)
Gross distribution per unit (sen)
4.00
3.00
3.50
Net distribution per unit (sen)
3.84
2.984
3.42
Nil
Nil
1:10
(i) Unit split
(RM)
(Distribution of income was made in the form of cash)
Performance and Investment Strategy for last Financial Year.
The Fund started the financial year on a very strong note boosted by expectations of global economic recovery. The US and
global markets made a turn for the better in the second quarter of 2009 and rallied after the countries made concerted efforts to
rescue their respective economies with large stimulus packages. This was later supported by better than expected corporate
results that re-affirmed investors’ positive sentiment.
The Fund increased its Shariah-compliant equity weighting to above 80% of its NAV level by increasing its exposure to
selective sectors that reflects themes already in place in the Fund. At the same time, the Fund trimmed down exposure on
defensive utilities and consumer Shariah-compliant stocks. As part of the risk management policy, the Fund has consciously
avoided wild fluctuation in Shariah-compliant equity exposure to minimise volatility in the Fund’s performance.
The Fund was managed within its investment objective for the financial year under review and met its objective of providing
capital returns. In addition, the Fund provided income distribution as at end of its financial year. The Fund achieved a solid
absolute return of 14.22% whilst its benchmark FTSE Bursa Malaysia Emas Shariah Index returned 16.35%.
Being a moderate risk fund, the Fund maintained a prudent strategy with Shariah-compliant stock selection emphasizing on
high growth companies with strong fundamentals and earning visibility, defensive companies with steady income stream as well
as high dividend yielding companies.
Portfolio Turnover Ratio
Period
2010
2009
2008
Portfolio Turnover (times)
0.74
0.61
0.69
The portfolio turnover ratio for the financial year ended 31 May 2010 is 0.74 times (2009: 0.61 times). It is higher compared to
the previous year’s result of 0.61 times mainly due to a increase in the average transactional value of the Fund compared with
the increase in the average NAV of the Fund.
Asset Allocation
The Fund’s asset allocation for the last three financial year is as follows:
Period
2010
•
Asset Allocation
•
82.2% in Shariah-compliant
equities
17.8% in Shariah-based
deposits
2009
•
•
76.7% in Shariah-compliant
equities
23.3% in Shariah-based
deposits
67
2008
•
•
•
59.9% in Shariahcompliant equities
40.1% in Shariah-based
deposits
Assets allocation during the financial year under review was primarily in Shariah-compliant equities with the remaining funds
placed in Shariah-based deposits. The Fund does not invest in any unquoted sukuk and Shariah-based collective investment
schemes.
The benchmark used by the investment manager for the Fund is the FTSE Bursa Malaysia EMAS Shariah Index (FBM EMAS
Shariah).
Management Expense Ratio (MER)
Financial Period Ending 31 May
2010
2009
2008
MER (%)
1.64
1.65
1.65
PAST PERFORMANCE OF THE FUND IS NOT AN INDICATION OF FUTURE PERFORMANCE
6.4
TA INCOME FUND
Average Total Returns of the Fund
Period
31 July
31 Jul
Fund
Benchmark
1 year
2009
2010
9.65
10.47
3 years
2007
2010
1.79
1.38
5 years
2005
2010
7.40
6.24
6 May 2002
2010
8.05
5.68
31 July
31 Jul
Fund
Benchmark
2009
2010
9.62
10.44
2008
2009
9.08
2.25
2007
2008
-11.78
-7.72
2006
2007
31.73
28.04
2005
2006
2.88
1.45
2004
2005
5.31
8.93
2003
2004
12.33
10.96
6 May 2002
2003
11.96
-3.69
Since Inception
Annual Total Returns of the Fund
Period
Since Inception
Source: Lipper Hindsight (based on NAV to NAV with distributions reinvested)
Distribution of Income
Financial Year Ended 31 July
Gross distribution per unit (sen)
Net distribution per unit (sen)
(i) Unit split
2010
2009
2008
(RM)
(RM)
(RM)
4.00
3.77
3.50
3.29
6.30
6.13
Nil
Nil
Nil
(Distribution of income was made in the form of cash)
Performance and Investment Strategy for last Financial Year.
The Fund was managed within its investment objective for the financial year under review. Being a low to medium risk fund, the
Fund maintained a prudent strategy with stock selection emphasis on companies with strong fundamentals and good earnings
visibility. Defensive companies with steady income stream and high dividend yielding companies were our focus.
The Fund generated a total return of 9.62% compared to the benchmark’s 10.44% largely due to our selection of defensive
stocks to weather the uncertain market conditions. While the general market direction was up during the financial year, there
were several pullbacks due to worries about a double dip in the US and European economies which could adversely impact
Malaysia’s open economy. Nevertheless, corporate earnings continued to show improvement, hence attracting investors into
equities. Liquidity continued to be good as central banks of the US, Europe and Japan are not in a tightening mode yet while
interest rates remained low.
The Fund has met its objective of generating capital appreciation and income returns.
68
Portfolio Turnover Ratio
Period
2010
2009
2008
Portfolio Turnover (times)
0.43
0.42
1.02
The portfolio turnover ratio for the financial year ended 31 July 2010 is 0.43 times (2009: 0.42times). It remains consistent with
that of previous financial year of 0.42 times.
Asset Allocation
The Fund’s asset allocation for the last three financial year is as follows:
Period
2010
Asset Allocation
2009
2008
•
58.5% in equities
•
59.3% in equities
•
•
6.5% in unquoted corporate
•
6.5% in unquoted corporate
•
bonds
bonds
•
35.0% in cash
•
44.9% in equities
12.2% in unquoted
corporate bonds
34.2% in cash
•
42.9% in cash
Asset allocation during the financial year under review was primarily in equities, supplemented by investment in unquoted
corporate bonds and in money market instruments. The Fund’s equity exposure averaged 55.4% of its NAV for the financial
year under review as compared to 47% of its NAV for the previous uear due mainly to improvement in the economy.
The benchmark used by the investment manager for the Fund are 60% FTSE Bursa Malaysia KLCI (FBM KLCI) and 40%
Maybank 12-month Fixed Deposit
Management Expense Ratio (MER)
Financial Period Ending 31 July
2010
2009
2008
MER (%)
1.78
1.82
1.78
PAST PERFORMANCE OF THE FUND IS NOT AN INDICATION OF FUTURE PERFORMANCE
6.5
TA SMALL CAP FUND
Average Total Returns of the Fund
Period
1 May
30 Apr
Fund
Benchmark
1 year
2009
2010
29.05
48.82
3 years
2007
2010
-1.04
2.97
2005
2010
4.88
12.34
9 Feb 2004
2010
0.62
6.83
Benchmark
5 years
Since Inception
Annual Total Returns of the Fund
Period
Since Inception
30 Apr
30 Apr
Fund
2009
2010
29.05
48.82
2008
2009
-15.32
-26.84
2007
2008
-11.33
0.29
2006
2007
27.67
62.92
2005
2006
2.60
0.65
9 Feb 2004
2005
-18.13
-15.74
Source: Lipper Hindsight (based on NAV to NAV with distributions reinvested)
Distribution of Income
Financial Year Ended 30 April
Gross distribution per unit (sen)
Net distribution per unit (sen)
(i) Unit split
2010
(RM)
2009
(RM)
2008
(RM)
-
-
-
Nil
Nil
Nil
69
Performance and Investment Strategy for last Financial Year.
The Fund started the financial year on a very strong note boosted by the global economy recovery. The US and global markets
made a turn for the better in April and rallied after the countries made concerted efforts to rescue their respective economies
with stimulus packages. In addition, the better than expected corporate earnings have further boost the market sentiment.
Like in most historical recessionary periods, the most illiquid and smaller-cap stocks especially those that are financially
distressed appear to be the star performers during the market recovery. Since the Fund avoids investing in financially
distressted and illiquid stocks which led the rally, it held back the Fund’s relative performance. Nevertheless, the Fund added
aggresively to its equity weighting from 46.5% of its NAV to as high as 86.4% of its NAV as at end of April, which helped the
Fund to leverage on the strong market rally. The Fund increased its exposure on glove making, finance and steel stocks given
the favourable outlook on these sectors. For the financial year under review, the Fund posted a commendable return of 29.0%,
which nonetheless underperformed its benchmark, the FBM Small Cap Index’s return of 48.8%. Clearly the higher beta stocks
dramatically outperformed the conservative or lower beta stocks during the run up.
The Fund was managed within its investment objective for the financial year under review. In accordance with the Fund’s
objective and strategy, the Fund invested primarily in small cap stocks with market capitalization of less than RM1,500 mllion. In
general, the Fund focused on stocks with sufficient liquidity, great upside potential, strong balance sheets and attractive
valuations. The Fund has achieved its objective of generating capital appreciation for the year under review.
Portfolio Turnover Ratio
Period
2010
2009
2008
Portfolio Turnover (times)
1.26
0.81
1.71
The portfolio turnover ratio for the financial year ended 30 April 2009 is 1.26 times (2009: 0.81 times). It is higher compared to
the previous year’s result of 0.81 times mainly due to a increase in the average transactional value of the Fund compared with
the increase in the average NAV of the Fund.
Asset Allocation
The Fund’s asset allocation for the last three financial year is as follows:
Period
2010
Asset Allocation
2009
2008
•
86.4% in equities
•
46.2% in equities
•
•
6.0% in unquoted corporate
•
13.3% in unquoted
•
bonds
•
corporate bonds
7.6% in cash
•
63.0% in equities
10.8% in unquoted
corporate bonds
40.5% in cash
•
26.2% in cash
Asset allocation during the financial year under review was primarily in equity, supplemented by investments in unquoted
corporate bonds. For year ended April 10, the Fund’s equity exposure averaged at 66.1% of its NAV, while bond holdings
averaged at 8.3% of its NAV, with the remaining in fixed deposits and repos.
The benchmark used by the investment manager for the Fund was the FTSE Bursa Malaysia Small Cap Index (FBM Small
Cap).
Management Expense Ratio (MER)
Financial Period Ending 30 April
2010
2009
2008
MER (%)
1.72
1.70
1.66
PAST PERFORMANCE OF THE FUND IS NOT AN INDICATION OF FUTURE PERFORMANCE
6.6
TA HIGH GROWTH FUND
Average Total Returns of the Fund
Period
31 Mar
31 Mar
Fund
Benchmark
46.08
55.14
1 year
2009
2010
3 years
2007
2010
4.69
2.00
5 years
2005
2010
12.03
8.70
7 Jun 2004
2010
9.97
8.61
Since Inception
70
Annual Total Returns of the Fund
Period
Since Inception
1 Apr
31 Mar
Fund
2009
2010
46.08
55.14
2008
2009
-22.93
-31.77
2007
2008
1.95
0.27
2006
2007
54.88
36.59
2005
2006
-0.67
4.72
2005
-1.55
6.46
7 Jun 2004
Benchmark
Source: Lipper Hindsight (based on NAV to NAV with distributions reinvested)
Distribution of Income
Financial Year Ended 31 March
Gross distribution per unit (sen)
Net distribution per unit (sen)
2010
(RM)
2009
(RM)
2008
(RM)
4.00
3.77
2.50
2.36
-
Nil
Nil
Nil
(i) Unit split
(Distribution of income was made in the form of cash)
Performance and Investment Strategy for last Financial Year.
The Fund started the financial period on a strong note boosted by the economic recovery and posted double digit return in one
month. However, during the start of recovery, the Fund had only invested 56% of its NAV in equities. The Fund was cautiously
reducing its equity exposure to as low as below 50% of its NAV when the financial crisis hit the markets in March 2009.
The US and global markets took a positive turn in April and rallied after governments made a concerted effort to rescue their
respective economies with stimulus packages. The Fund has been accumulating stocks as leading market indicators showed
signs of recovery towards end of April. The Fund increased its exposure to construction, glove making and plantation stocks
govem the favourable outlook on these sectors and the equity exposure reached as high as 88% of its NAV. The Fund
continued to have high exposure in equities to ride on the economic uptrend and market recovery during the end of the financial
period. The commendable performance of the Fund was also due to the out-performance of stocks such as Axiata, Supermax,
Genting, IOI Corp, Mudajaya and Jerneh Asia which are the Fund’s top holdings.
The Fund was managed within its investment objective for the financial period under review and met its objective of providing
capital returns. The Fund registered a commendable return of +46.08%
Portfolio Turnover Ratio
Period
2010
2009
2008
Portfolio Turnover (times)
2.09
1.32
3.14
Portfolio turnover ratio of TAHG for the last financial year ended 31 March 2010 is 2.09 times. It is higher compared to the
previous year’s result of 1.32 times mainly due to a increase in the average transactional value of the Fund compared with the
increase in the average NAV of the Fund.
Asset Allocation
The Fund’s asset allocation for the last three financial year is as follows:
Period
2010
•
Asset Allocation
95.8% in equities
•
•
4.2% in cash
2009
•
•
53.9% in equities
4.0% in unquoted corporate
bonds
•
42.1% in cash
2008
•
63.7% in equities
•
•
3.1% in unquoted corporate
bonds
•
33.2% in cash
Asset allocation during the financial year under review was primarily in equity. The Fund also started to move into a collective
investment scheme, which is mainly invested in money market funds intended to generate additional returns with low risk.
During the financial period under review the Fund’s equity exposure averaged at 78% of its NAV.
The benchmark used by the investment manager for the Fund is the FTSE Bursa Malaysia Top 100 Index (FBM Top 100).
71
Management Expense Ratio (MER)
Financial Period Ending 31 March
2010
2009
2008
MER (%)
1.78
1.80
1.80
PAST PERFORMANCE OF THE FUND IS NOT AN INDICATION OF FUTURE PERFORMANCE
6.7
TA DANA OPTIMIX
Average Total Returns of the Fund
Period
31 Jan
31 Jan
Fund
Benchmark
(FBM Emas
Shariah)
Benchmark
(12month GIA)
1 year
2009
2010
43.06
40.80
2.65
3 years
2007
2010
3.44
2.51
3.11
17 Jan 2005
2010
8.13
5.81
3.35
Since Inception
Annual Total Returns of the Fund
Period
Since Inception
31 Jan
31 Jan
Fund
Benchmark
(FBM Emas Shariah)
Benchmark
(12month GIA)
2009
2010
42.92
40.67
2.64
2008
2009
-26.42
-40.25
2.99
2007
2008
5.25
28.16
3.70
2006
2007
29.88
34.45
3.79
17 Jan 2005
2006
3.12
-8.24
3.75
Source: Lipper Hindsight (based on NAV to NAV with distributions reinvested)
Distribution of Income
Financial Year Ended 31 January
Gross distribution per unit (sen)
Net distribution per unit (sen)
2010
2009
(RM)
(RM)
(RM)
2.50
2.42
3.50
3.43
Nil
Nil
Nil
Nil
1:4
(i) Unit split
2008
(Distribution of income was made in the form of cash)
Performance and Investment Strategy for last Financial Year.
The Fund started the financial period with a weak sentiment and posted a negative return. However, during the financial crisis
the Fund has been cautiously taking profit and reducing its Shariah-compliant equity exposure to as low as 43% of its NAV
when the overall market sentiment was poor in March 2009.
When the US and global markets made a turn in April and rallied after the Government had a concerted effort to rescue their
respective economies with stimulus packages, the Fund has been accumulating Shariah-compliant stocks when the leading
market indicators showed signs of recovery towards end April. The Fund increased its exposure to construction, glove and
plantation stocks given the favourable outlook on these sectors and the Shariah-compliant equity exposure reached as high as
88% of its NAV. The Fund continued to have high exposure in Shariah-compliant equity to ride the uptrend economic and
market recovery during the end of the financial period. The commendable performance of the Fund was also due to the outperformance of Shariah-compliant stocks such as Mudajaya, which is the top holding of the Fund, Supermax, Topglove, IOI
Corp and 3A.
The Fund was managed within its investment objective for the financial period under review and met its objective of providing
capital returns. The Fund registered a commendable return of +42.9% which outperformed benchmark return of +40.7%.
Portfolio Turnover Ratio
Period
2010
2009
2008
Portfolio Turnover (times)
0.96
0.58
1.48
72
Portfolio turnover ratio of TADO for the last financial year ended 31 January 2010 is 0.96 times (2008:0.58 times). It is higher
compared to the previous year’s result of 0.58 times mainly due to an increase in the average transactional value of the Fund
compared with the increase in the average NAV of the Fund.
Asset Allocation
The Fund’s asset allocation for the last three financial year is as follows:
Period
2010
•
Asset Allocation
2009
83.0% in Shariah-compliant
•
equities securities
•
2008
43.9% in Shariah-compliant
•
equities securities
17.0% in Shariah- based
•
deposits
70.4% in Shariah-compliant
equities securities
56.1% in Shariah- based
deposits
•
29.6% in Shariah- based
deposits
Asset allocation during the financial year under review was primarily in Shariah-compliant equities supplemented by
investments in sukuk. The Fund also started to move into Shariah-based deposits intended to generate additional returns with
low risk. During the interim period under review, the Fund’s Shariah-compliant equity exposure averaged about 77% of its NAV.
The benchmark used by the investment manager for the Fund is the FTSE Bursa Malaysia EMAS Shariah Index (FBM EMAS
Shariah) and Maybank 12-month General Investment Account (GIA) rate. The FBM EMAS Shariah is used when the portfolio of
the Fund consists of 90% or more of equities whilst the 12-month GIA rate is used when the Fund consists of 90% or more of
sukuk. Both benchmarks will be used (50:50) when the portfolio of the Fund consists of a balanced mixed asset of Shariahcompliant equities and sukuk.
Management Expense Ratio (MER)
Financial Period Ending 31 January
2010
2009
2008
MER (%)
1.65
1.68
1.75
PAST PERFORMANCE OF THE FUND IS NOT AN INDICATION OF FUTURE PERFORMANCE
6.8
TA CASHPLUS FUND
Average Total Returns of the Fund
Period
1 year
3 year
Since Inception
31 Aug
31 Aug
Fund
Benchmark
2010
1.94
1.97
2007
2010
2.43
2.55
6 Jun 2005
2010
2.53
2.58
31 Aug
Fund
Benchmark
2009
2010
1.94
1.97
2008
2009
2.38
2.38
2007
2008
2.98
3.29
2006
2007
3.03
3.32
6 June 2005
2006
2.94
2.58
2009
Annual Total Returns of the Fund
Period
Since Inception
31 Aug
Source: Lipper Hindsight (based on NAV to NAV with distributions reinvested)
Distribution of Income
Financial Year Ended 31 August
2010
(RM)
2009
2008
(RM)
(RM)
Gross distribution per unit (sen)
Net distribution per unit (sen)
Nil
Nil
2.00
2.00
2.19
2.19
(i) Unit split
Nil
Nil
Nil
(Distribution of income was made in the form of cash)
Performance and Investment Strategy for last Financial Year.
The fund was managed within its investment objective for the period under review. In accordance with the fund’s objective and
strategy, the fund has generated a consistent profit stream from investments in fixed income, fixed deposits as well as short
term deposits. The fund generated total returns of 1.94% for the financial year ended 31 August 2010, in line with the
73
benchmark return of 1.97%. The Interbank overnight deposit rate was averaged 2.38%# while the BNM official Overnight Policy
Rate (OPR) was at 2.75%# p.a. as at 31 August 2010.
Portfolio Turnover Ratio
Period
2010
2009
2008
Portfolio Turnover (times)
6.60
8.33
8.09
Portfolio Turnover Ratio of the Fund for the financial year ended 31 August 2010 is 6.60 times (2009 : 8.33 times) is lower
compared to the previous year’s result of 8.33 times mainly due lower transactional value.
Asset Allocation
The Fund’s asset allocation for the last three financial year is as follows:
Period
2010
Asset Allocation
•
2009
100.0% in cash
•
2008
100.0% in cash
•
100.0% in cash
The fund invested mainly in short term money market instruments.
The benchmark used by the investment manager for the Fund is the Interbank Overnight Deposit Rates.
Management Expense Ratio (MER)
Financial Period Ending 31 August
2010
2009
2008
MER
0.60
0.58
0.59
PAST PERFORMANCE OF THE FUND IS NOT AN INDICATION OF FUTURE PERFORMANCE
6.9
TA ISLAMIC CASHPLUS FUND
Average Total Returns of the Fund
Period
31 Aug
31 Aug
1 year
2009
2010
Fund
-0.09
Benchmark
2.26
3 year
2006
2009
0.65
2.27
2009
1.15
2.51
31 Aug
31 Aug
2009
2010
Fund
-0.09
Benchmark
2.26
2008
2009
1.18
2.26
2007
2008
0.88
2.29
2007
1.88
2.83
2006
2.20
3.53
Since Inception
6 Jun 2005
Annual Total Returns of the Fund
Period
2006
Since Inception
6 June 2005
Source: Lipper Hindsight (based on NAV to NAV with distributions reinvested)
Distribution of Income
Financial Year Ended 31 August
Gross distribution per unit (sen)
Net distribution per unit (sen)
(i) Unit split
2010
(RM)
2009
(RM)
2008
(RM)
-
-
-
Nil
Nil
Nil
Performance and Investment Strategy for last Financial Year
The fund was managed within its investment objective for the period under review. In accordance with the fund’s objective and
strategy, the fund has generated a consistent profit stream from investments in sukuk, investment account as well as short term
deposits. The fund has underperformed at -0.09% for the financial year ended 31 August 2010 compared to the benchmark
74
return of 2.26%. The one-month indicative Maybank-GIA rate was averaged 2.48% while the BNM official Overnight Policy
Rate (OPR) was at 2.75% p.a. as at 31 August 2010.
Portfolio Turnover Ratio
Period
2010
2009
2008
Portfolio Turnover (times)
25.18
13.89
13.72
Portfolio Turnover Ratio of the Fund for the financial year ended 31 August 2010 is 25.18 times is higher compared to the
previous year’s result of 13.89 times mainly due to higher transactional value.
Asset Allocation
The Fund’s asset allocation for the last three financial year is as follows:
Period
2010
Asset Allocation
•
2009
100% in Shariah- based
•
deposits
2008
100% in Shariah- based
•
deposits
100% in Shariah- based
deposits
Cash balance was put in short term Shariah-based deposits as and when sukuk investments matured. No new sukuk were
purchased due to current volatility.
The benchmark used by the investment manager for the Fund is the Maybank 1-month GIA rate.
Management Expense Ratio (MER)
Financial Period Ending 31 August
2010
2009
2008
MER (%)
1.27
0.70
0.82
PAST PERFORMANCE OF THE FUND IS NOT AN INDICATION OF FUTURE PERFORMANCE
6.10
TA SOUTH EAST ASIA EQUITY FUND
Average Total Returns of the Fund
Period
1 Dec
30 Nov
Fund
1 year
2008
2009
69.89
3 year
Since Inception
Benchmark
(in MYR)
61.48
Benchmark
(in USD)
72.42
2006
2009
6.30
1.08
3.27
28 Nov 2005
2009
10.78
8.25
11.21
1 Dec
30 Nov
Fund
2008
2009
70.39
Benchmark
(in MYR)
61.91
Benchmark
(in USD)
72.93
2008
-49.76
-47.55
-51.30
Annual Total Returns of the Fund
Period
2007
Since Inception
2006
2007
40.35
21.61
30.78
28 Nov 2005
2006
25.45
33.03
38.97
Source: Lipper Hindsight (based on NAV to NAV with distributions reinvested)
Distribution of Income
Financial Year Ended 30 November
Gross distribution per unit (sen)
Net distribution per unit (sen)
(i) Unit split
2009*
2008
2007
(RM)
(RM)
(RM)
-
10.00
9.94
-
Nil
Nil
1:4
(Distribution of income was made in the form of cash)
*Please see Unaudited Financial Highlights section on page 99
75
Performance and Investment Strategy for last Financial Year
For the year ended 30 November 2009, the Fund outperformed its benchmark by 8.5%. Outperformance was attributed mainly
to the Singapore and Thailand markets.
On a sectoral basis, the Fund’s exposure in the financial, industrial and energy related stocks was a positive contributor to the
Fund’s outperformance. As investors’ risk appetites started to pick up on the back of improving economic fundamentals and
corporate earnings in early 2009, the cyclical sectors led the gainers in the run up of the regional equity markets.
All regional economies are expected to post positive GDP growths in 2010. Regional stock markets are also likely to continue
rising in 2010, buoyed by flush liquidity, further signs of economic recovery and corporate earnings growth.
We have adopted a strategy of investing in core companies with strong balance sheets and cash flows while maintaining
exposure to cyclicals which should benefit from a recovering global economy. The Fund was managed within its investment
objective for the financial year under review and met its objectives of providing capital appreciation.
Portfolio Turnover Ratio
Period
2009
2008
2007
Portfolio Turnover (times)
0.24
0.72
1.86
Portfolio turnover ratio of the Fund for the last financial year ended 30 November 2009 is 0.24 times (2008: 0.72). It is lower
compared to the previous year’s result of 0.72 times mainly due to a decrease in the average transactional value of the Fund as
a result of lower trading activities and lower general market prices of shares.
Asset Allocation
The Fund’s asset allocation for the last three financial year is as follows:
Period
2009
Asset Allocation
2008
2007
•
93.9% in equities
•
82.4% in equities
•
6.1% in cash
•
17.6% in cash
•
92.9% in equities
•
2.7% in collective
investment scheme
•
4.4% in cash
We increased our cash positions and deployed into stocks with compelling valuations.
The benchmark used by the External Investment Manager for the Fund is the FTSE/ASEAN 40 Index.
Management Expense Ratio (MER)
Financial Period Ending 30 November
2009
2008
2007
MER (%)
1.65
1.68
1.95
PAST PERFORMANCE OF THE FUND IS NOT AN INDICATION OF FUTURE PERFORMANCE
6.11
TA GLOBAL ASSET ALLOCATOR FUND
Average Total Returns of the Fund
Period
31 July
31 Jul
1 year
2009
2010
Fund
1.84
Benchmark
0.82
2007
2010
-4.04
-7.86
12 Jun 2006
2010
-0.36
-5.14
31 July
31 Jul
2009
2010
Fund
3.53
Benchmark
1.20
2008
2009
-15.51
-29.25
2007
2008
-4.65
4.21
12 Jun 2006
2007
12.43
2.68
3 year
Since Inception
Annual Total Returns of the Fund
Period
Since Inception
Source: Lipper Hindsight (based on NAV to NAV with distributions reinvested)
76
Distribution of Income
Financial Year Ended 31 July
2010
2008
(RM)
(RM)
-
-
2.00
1.99
Nil
Nil
Nil
Gross distribution per unit (sen)
Net distribution per unit (sen)
(i) Unit split
2009
(RM)
(Distribution of income was made in the form of cash)
Performance and Investment Strategy for last Financial Year
The Fund was managed within its investment objective for the financial year under review. In accordance with the Fund’s
objective and strategy, the Fund spread out its investment into the four main asset classes - equities, fixed income,
commodities and property equities.
For the year under review, the global market remained volatile with very mixed performances from the various asset classes.
The Fund started the period in the midst of a bullish run for risk assets on expectations of economic recovery. However, the
optimism did not last long as fear of a double dip began to take hold. As a result, the investment market gains were trimmed
down.
Despite the highly uncertain global market, the Fund still managed to show a net return of 1.8%. It also exhibit high consistency
in monthly returns as a result of a much diversified portfolio. The Fund has met its objective of generating capital returns.
Portfolio Turnover Ratio
Period
2010
2009
2008
Portfolio Turnover (times)
0.32
0.52
0.88
The portfolio turnover ratio of the Fund for the financial year ended 31 July 2010 is 0.32 times (2009: 0.52 times). It is lower
compared to the previous year’s result of 0.52 times mainly due to a decrease in the average transactional value of the Fund as
a result of lower trading activities and lower general market prices of shares.
Asset Allocation
The Fund’s asset allocation for the last three financial year is as follows:
Period
2010
Asset Allocation
2009
2008
•
31.8% in equities
•
32.8% in equities
•
21.5% in equities
•
21.8% in properties
•
17.3% in properties
•
18.7% in properties
•
34.1% in commodities
•
27.4% in commodities
•
23.4% in commodities
•
9.3% in fixed income
•
17.7% in fixed income
•
10.4% in fixed income
•
3.0% in cash
•
4.8% in cash
•
26.0% in cash
The Fund Manager continued to use asset allocation strategies to manage the Fund. In the early half of the year, the Fund was
over weighted in cash. By the end of the review period, the Fund was already over weighted in equities and commodities.
The benchmark used by the investment manager for the Fund is like below:
•
Equities: Morgan Stanley Capital International (MSCI) AC World Index – 25%
•
Fixed Income Securities: JP Morgan Global Government Bond Global Unhedged USD Index – 25%
•
Property: 25%Property: S&P Developed REIT Index
•
Commodities: S&P Goldman Sachs Commodity Index (GSCI) Index– 25%
Management Expense Ratio (MER)
Financial Period Ending 31 July
2010
2009
2008
MER (%)
1.54
1.54
1.15
PAST PERFORMANCE OF THE FUND IS NOT AN INDICATION OF FUTURE PERFORMANCE
77
6.12
TA ASIA PACIFIC ISLAMIC BALANCED FUND
Average Total Returns of the Fund
Period
30 Sep
30 Sep
1 year
2009
2010
Fund
3.23
Benchmark
1.23
3 Year
2007
2010
-0.29
-2.07
2010
2.48
0.73
1 Oct
30 Sep
2009
2010
Fund
3.23
Benchmark
1.23
2008
2009
21.09
12.11
2007
2008
-20.70
-17.26
7 Nov 2006
2007
10.99
9.57
Since Inception
7 Nov 2006
Annual Total Returns of the Fund
Period
Since Inception
Source: Lipper Hindsight (based on NAV to NAV with distributions reinvested.
Distribution of Income
Financial Year Ended 30 September
2009*
(RM)
2008
(RM)
2007
(RM)
-
2.00
1.99
-
Nil
Nil
Nil
Gross distribution per unit (sen)
Net distribution per unit (sen)
(i) Unit split
(Distribution of income was made in the form of cash)
*Please see Unaudited Financial Highlights section on page 99
Performance and Investment Strategy for last Financial Year
The fund gained 3.23% compared to the benchmark’s increase of 1.23% for the financial year ending September 2010. The
fund also outperformed the Dow Jones Islamic Asia Pacific Index which posted a negative return of 0.9% for the financial year.
For the financial year under review, the fund outperformed the benchmark due to several factors such as the fund
underweighted Japan relative to the benchmark where Japanese stocks underperformed during the financial year during the
market rally and the return for Japan market as measured by the Nikkei 225 was -11.2%
In addition, the fund over-weighted the Thailand market as the Thai market performed remarkably well during the financial year
which The SET index was up 32.7% year to date. The fund’s good selection of stocks also contributed to the out-performance.
The fund focused on commodity related stocks which performed well and the fund has stocks such as Macarthur Coal which
gained 24% while Mount Gibson gained 58%. Other commodity related stocks such as Banpu PLC (Thailand) and China Coal
Energy (Hong Kong) also performed well gaining 65% and 25% respectively.
Portfolio Turnover Ratio
Period
2010
2009
2008
Portfolio Turnover (times)
0.42
0.40
0.82
Portfolio turnover ratio of the Fund for the last financial year ended 30 September 2010 is 0.42 times (2009: 0.40 times). It is
higher compared to the previous year’s result of 0.40 times mainly due to a increase in the average transactional value of the
Fund compared with the increase in the average net asset value of the Fund.
Asset Allocation
The Fund’s asset allocation for the last three financial year is as follows:
Period
2010
•
Asset Allocation
59.8% in Shariah-
2009
•
compliant equities
•
40.2% in Shariah-based
56.4% in Shariah-compliant
2008
•
equities
•
deposits
43.6% in Shariah-based
deposits
44.4% in Shariah-compliant
equities
•
55.6% in Shariah-based
deposits
Asset allocation during the financial period under review was invested into equity with above 50% of the Fund’s NAV throughout
the financial period under review. The fund’s non-equity assets were mainly invested in Shariah-based deposits intended to
78
generate additional returns with low risk. During the financial period under review, the Fund’s Shariah-compliant equity
exposure averaged at 54.2% of its NAV.
The composite benchmark used by the investment manager for the Fund is as per below:
•
Shariah-compliant equity: Dow Jones Islamic Market Asia Pacific Index – 50%; and
•
Sukuk: Maybank 12-month General Investment Account (GIA) rate – 50%.
Management Expense Ratio (MER)
Financial Period Ending 30 September
2010
2009
2008
MER (%)
1.87
1.85
1.77
PAST PERFORMANCE OF THE FUND IS NOT AN INDICATION OF FUTURE PERFORMANCE
6.13
TA EUROPEAN EQUITY FUND
Average Total Returns of the Fund
Period
30 Jun
2009
2010
-4.77
Benchmark
(in MYR)
-5.32
20 Mar 2007
2010
-15.40
-15.81
-11.64
30 Jun
30 Jun
Fund
2009
2010
-4.77
Benchmark
(in MYR)
-5.32
Benchmark
(in EURO)
17.71
2008
2009
-23.46
-31.91
-28.91
20 Mar 2007
2008
-20.76
-11.80
-20.39
1 year
Since Inception
30 Jun
Fund
Benchmark
(in EURO)
17.71
Annual Total Returns of the Fund
Period
Since Inception
Source: Lipper Hindsight (based on NAV to NAV with distributions reinvested)
Distribution of Income
Financial Year Ended 30 June
Gross distribution per unit (sen)
Net distribution per unit (sen)
(i) Unit split
2010
(RM)
2009
(RM)
2008
(RM)
-
-
-
Nil
Nil
Nil
Performance and Investment Strategy for last Financial Year
During the year ended 30 June 2010, the Fund declined by 4.8% while its benchmark (in RM) index was down 5.3%. Removing
the currency effect, the benchmark (in Euro) was actually up by 17.7%. The Fund did not manage to achieve its objective of
generating capital returns.
During the period, the TA European Equity Fund invested in five (5) collective investment schemes managed by Henderson
Global Investors Limited and one (1) investment scheme managed by Fortis Investments.
Portfolio Turnover Ratio
Period
2010
2009
2008
Portfolio Turnover (times)
0.32
0.34
0.85
The portfolio turnover ratio for the financial year ended 30 June 2010 is 0.32 times (2009: 0.34 times). ). It is remains consistent
with that of previous financial year of 0.34 times.
79
Asset Allocation
The Fund’s asset allocation for the last three financial year is as follows:
Period
2010
•
2009
93.0% in collective
94.4% in collective
•
investment scheme
Asset Allocation
•
2008
•
investment scheme
7.0% in cash
5.6% in cash
•
90.1% in collective
investment scheme
•
9.9% in cash
The benchmark used by the investment manager for the Fund is the FTSE World Europe Index.
Management Expense Ratio (MER)
Financial Period Ending 30 June
2010
2009
2008
MER (%)
0.87
0.85
1.05
PAST PERFORMANCE OF THE FUND IS NOT AN INDICATION OF FUTURE PERFORMANCE
6.14
TA GLOBAL UTILITIES FUND
Average Total Returns of the Fund
Period
30 Jun
30 Jun
Fund
1 year
2009
2010
15 Aug 2007
Since Inception
-12.25
Benchmark
(in MYR)
-8.79
Benchmark
(in EURO)
13.39
2010
-18.60
-11.18
-5.80
30 Jun
30 Jun
Fund
2009
2010
-12.25
Benchmark
(in MYR)
-8.79
Benchmark
(in EURO)
13.39
2008
2009
-32.99
-25.35
-22.06
2008
-5.92
4.43
-4.71
Annual Total Returns of the Fund
Period
Since Inception
15 Aug 2007
Source: Lipper Hindsight (based on NAV to NAV with distributions reinvested)
Distribution of Income
Financial Year Ended 30 June
2010
(RM)
2009
(RM)
2008
(RM)
-
-
-
Nil
Nil
Nil
Gross distribution per unit (sen)
Net distribution per unit (sen)
(i) Unit split
Performance and Investment Strategy for last Financial Year
The Fund recorded a negative return of -12.25 for its financial year ended 30 June 2010. During that period, the Fund invested
into Fortis L Fund Equity Utilities World (“Target Fund”) managed by Fortis Investments.
Below are comments from Fortis Investments on the performance of the Target Fund:
For the first half of 2010, the utilities sector underperformed the broader market despite having strong outperformance in the
second quarter as defensive sectors held-up well during the down period. The Fortis L Fund Equity Utilities World also
underperformed its benchmark in the first half of 2010. The funds performance was most positively impacted by the strength of
stock selection in Gas Utilities and allocation in Water Utilities.
Fund performance during the first half was hurt most by stock selection in the Multi-Utilities sub-industry. The subindustry had
the worst returns of any sub-industry in the sector and an overweight position in GDF Suez S.A., a France-based natural gas
and electricity supplier, detracted from the funds first half performance.
Over the first quarter the Fund underperformed the greater market with the Fund’s greatest contribution coming from an
overweight position in Tokyo Electric Power Co. Inc and Tokyo Gas Co.Ltd. The largest detraction during the first quarter came
from an underweight position in Dominion Resources Inc., a producer and transporter of energy.
During the second quarter, the Fund slightly underperformed. The greatest contribution for the period came from an overweight
position in Tokyo Electric Power Co. Inc, NextEra Energy Inc., and an underweight position in Iberdrola S.A., while the largest
detraction came from an overweight position in Suez Environnement S.A.
80
Portfolio Turnover Ratio
Period
2010
2009
2008
Portfolio Turnover (times)
0.22
0.07
0.59
The portfolio turnover ratio for the financial year ended 30 June 2010 is 0.22 times (2009: 0.07 times). It is higher compared to
the previous year’s result of 0.07 times mainly due to a higher percentage of decrease in the average transactional value of the
Fund compared with the decrease in the average NAV of the Fund.
Asset Allocation
The Fund’s asset allocation for the last three financial year is as follows:
Period
2010
•
Asset Allocation
2009
97.1% in collective
•
94.5% in collective
•
investment scheme
investment scheme
•
2008
2.9% in cash
•
5.5% in cash
94.5% in collective
investment scheme
•
5.5% in cash
The benchmark used by the investment manager for the Fund is the Morgan Stanley Capital International World Utilities Index
– Net Index.
Management Expense Ratio (MER)
Financial Period Ending 30 June
2010
2009
2008
MER (%)
0.46
0.46
0.50
PAST PERFORMANCE OF THE FUND IS NOT AN INDICATION OF FUTURE PERFORMANCE
6.15
TA DANA FOKUS
Average Total Returns of the Fund
Period
30 April
30 April
1 Year
2009
2010
Fund
26.72
Benchmark
31.50
Since Inception
17 June 2008
2010
16.34
1.10
Annual Total Returns of the Fund
Period
30 April
30 April
1 Year
2009
2010
Fund
26.72
Benchmark
31.50
17 June 2008
2009
4.70
-22.38
Since Inception
Source: Lipper Hindsight (based on NAV to NAV with distributions reinvested)
Distribution of Income
Financial Year Ended 30 April
2010
2009
(RM)
(RM)
Gross distribution per unit (sen) – Final
– Interim
Net distribution per unit (sen) – Final
– Interim
3.00
3.50
2.99
3.46
-
(i) Unit split
1 : 10
Nil
-
Performance and Investment Strategy for last Financial Year
The Fund started the financial year on a very strong note boosted by the global economic recovery. The US and global markets
made a turn for the better in April and rallied after the countries made concerted efforts to rescue their respective economies
with stimulus packages. In addition, the better than expected corporate earnings have futher boost the market sentiment.
The Fund began accumulating Shariah-compliant stocks when leading market indicators showed signs of a recovery towards
the end of April. The Fund increased exposure to construction, glove and plantation stocks given the favourable outlook on
these sectors. Shariah-compliant equity exposure reached as high as 83% of its NAV by the end of May. The Fund maintained
high exposure to Shariah-compliant equities during most of the year while riding the economic and market recovery. The
81
commendable performance of the Fund was also due to the out-performance of Shariah-compliant stocks such as Axiata, PPB
Group, Sapura Crest and 3A Resources.
The Fund was managed within its investment objective for the financial year under review and met its objective. The Fund
registered a commendable return of +26.72%.
Portfolio Turnover Ratio
Period
2010
2009
Portfolio Turnover (times)
1.68
0.94
The portfolio turnover ratio for the financial period ended 30 April 2010 is 1.68 times (2009: 0.94 times). It is higher compared to
the previous year’s result of 0.94 times mainly due to an incerase in the average transactional value of the Fund compared with
the increase in the average NAV of the Fund.
Asset Allocation
The Fund’s asset allocation for the last financial year is as follows:
Period
2010
•
2009
78.3% in Shariah-
•
compliant equity
Asset Allocation
•
21.7% in Shariah-based
deposits
49.3% in Shariahcompliant equity
•
50.7% in Shariah-based
deposits
Asset allocation for the period under review was primarily in Shariah compliant equities. During the financial year under review
the Fund’s Shariah-compliant equity exposure averaged at 77% of its NAV.
The benchmark used by the investment manager for the Fund is the FTSE Bursa Malaysia Emas Shariah Index (FBM EMAS
Shariah)
Management Expense Ratio (MER)
Financial Period Ending 30 April
2010
2009
MER (%)
1.96
1.98
PAST PERFORMANCE OF THE FUND IS NOT AN INDICATION OF FUTURE PERFORMANCE
6.16
TA ALL-CYCLE COMMODITIES INCOME FUND
Average Total Returns of the Fund
Period
30 September
30 September
1 Year
2009
2010
Fund
-1.83
Benchmark
2.44
Since Inception
04 May 2009
2010
-2.34
2.60
Annual Total Returns of the Fund
Period
30 September
30 September
1 Year
2009
2010
Fund
-1.83
Benchmark
2.44
Since Inception
04 May 2009
2009
-3.28
3.67
Source: Lipper Hindsight (based on NAV to NAV with distributions reinvested)
Distribution of Income
Financial Year Ended 30 September
2010
Gross distribution per unit (sen)
Net distribution per unit (sen)
(RM)
-
(i) Unit split
Nil
(Distribution of income was made in the form of cash)
*Please see Unaudited Financial Highlights section on page 99
Performance and Investment Strategy for last Financial Year
With expectation of economic activity slowing in both the US, Europe & China and general above-average inventory levels for
many commodities (with exceptions of certain soft commodities), the near-term outlook for commodities as a whole is no longer
82
bullish fundamentally. Long-only investors will only add to broad-based commodity index positions on significant price dips or
wait until the macroeconomic outlook has improved on sustainable basis. The recent trend decline in major leading indicators,
especially those of manufacturing and production data out of the US & China has worried investors on the risk of a much slower
growth moving forward, although signs of a double-dip in global economy seem remote at this juncture. However, robust
domestic demand and multi-years large-scale commodity-intensive infrastructure spending programs in China & other
developing economies have thus far managed to sustain commodity prices to trend higher despite slower US and Europe GDP
growth.
The negative performance of CYD for the financial year ended 30 Sep 2009 was driven by lower-than-average liquidity
premiums in the commodity markets and drawdowns in single commodities. The performance in 2009 was driven by a
deflationary environment, reducing the long-only demand from passive investors and increased short-demand from active
money managers. There have been several periods of flat MarketNeutral returns in the past. We believe that as inflation
expectations and long-only demand from commodity investors rises, liquidity demand in the commodity markets increases,
lifting the return potential of the CYD Index in the near term. The Fund has underperformed at -2.34% against benchmark
returns of +2.60% during the period under review mainly due to negative performance of the invested option. Nonetheless,
income yields from money market investment were able to cushion part of the underperformance of option investment.
Portfolio Turnover Ratio
Period
2010
Portfolio Turnover (times)
13.24
The portfolio turnover ratio for the financial period ended 30 September 2010 is 13.24 times.
Asset Allocation
The Fund’s asset allocation for the last financial year is as follows:
Period
2010
Asset Allocation
•
7.34% in options
•
92.66% in cash
The benchmark used by the investment manager for the Fund is the RAM Quant Shop MGS Bond Short 1-3 Year.
Management Expense Ratio (MER)
Financial Period Ending 30 September
2010
MER (%)
3.25
*MER for TAACCI is based on 515 days
There is no fund performance highlights for TA BRIC & Emerging Markets Fund as the Fund have yet to complete
its first financial year.
83
7. FINANCIAL HIGHLIGHTS OF THE FUNDS
7.1
FINANCIAL HIGHLIGHTS OF THE FUNDS
Extracts of the financial statement of the Funds are as follows:
(a)
TAGF:
Audited Income Statement for the financial years ended 30 June:
2010
RM
Investment income/(loss):
Gross dividend income
Interest income
Net realised gain/(loss) on sale of investments
Net gain on foreign exchange
Accretion of discount on unquoted bonds
Realised gain/(loss) on future contracts
Recovery of unquoted fixed income securities fully
impaired in prior financial year
811,797
101,239
1,905,818
66,774
5,191
2009
RM
2008
RM
599,000
465,949
(873,056)
37,907
147,516
1,056,680
532,715
5,884,712
3,025
(139,389)
23,511
-
-
2,914,330
377,316
7,337,743
623,562
58,617
6,500
1,400
20,843
522,923
55,428
6,650
2,900
20,741
724,238
62,395
6,500
2,600
21,658
710,922
608,642
817,391
Net income/(loss) before Taxation
Income tax expenses
2,203,408
(60,362)
(231,326)
(90,059)
6,520,352
(212,522)
Net income/(loss) after taxation
2,143,046
(321,385)
6,307,830
2010
RM
2009
RM
2008
RM
54,594,890
2,662,751
35,517,035
3,328,722
37,410,032
2,571,862
57,257,641
38,845,757
39,981,894
1,098,211
4,979,899
486,102
2,391,552
566,206
2,489,421
6,078,110
2,877,654
3,055,627
51,179,531
35,968,103
36,926,267
100,483,892
76,065,550
75,000,346
0.5094
0.4729
0.4924
Expenses:
Manager’s fees
Trustee’s fees
Auditors’ remuneration
Tax agent’s fee
Administration fees and expenses
Audited Balance Sheet as at 30 June:
ASSETS
Investments
Other assets
Total Assets
LIABILITIES
Payables and accruals
Distribution payable
Total Liabilities
NAV ATTRIBUTABLE TO UNIT HOLDERS
NUMBERS OF UNITS IN CIRCULATION
NAV ATTRIBUTABLE TO UNIT HOLDERS PER UNIT
-EX -DISTRIBUTION
84
(b)
TACF:
Audited Income Statement for the financial years ended 30 September:
2009
RM
2008
RM
2007
RM
Investment income/(loss):
439,640
251,801
(1,628,270)
119,708
-
551,203
369,451
428,930
10,314
-
544,870
387,923
17,711,387
4,974
6,204
250,188
(3,176)
(2,000,000)
(817,121)
1,359,898
16,902,370
354,163
35,000
6,750
2,300
21,018
467,713
35,000
6,500
1,200
20,388
589,748
41,268
6,500
32,111
419,231
530,801
669,627
Net (loss)/income before taxation
Income tax expenses
(1,236,352)
(72,844)
829,097
(121,948)
16,232,743
(83,024)
Net (loss)/income after taxation
(1,309,196)
707,149
16,149,719
Gross dividend income
Interest income
Net realised (loss)/gain on sale of investments
Accretion of discount on unquoted bonds
Net gain on foreign exchange
Net realised gain from future contracts
Amortisation of premium on unquoted bonds
Provision for impairment loss*
Expenses:
Manager’s fees
Trustee’s fees
Auditors’ remuneration
Tax agent’s fee
Administration fees and expenses
* Provision for impairment loss was in respect of defaulted fixed income securities issued by Memory Tech Sdn Bhd
Audited Balance Sheet as at 30 September:
2009
RM
2008
RM
2007
RM
26,916,670
1,019,361
22,508,796
1,399,702
36,833,314
2,830,783
27,936,031
23,908,498
39,664,097
22,942
-
229,349
1,328,638
1,822,792
2,633,994
22,942
1,557,987
4,456,786
NAV ATTRIBUTABLE TO UNIT HOLDERS
27,913,089
22,350,511
35,207,311
NUMBERS OF UNITS IN CIRCULATION
53,719,389
46,385,749
51,100,451
0.5197
0.4819
0.6890
ASSETS
Investments
Other assets
Total Assets
LIABILITIES
Payables and accruals
Distribution payable
Total Liabilities
NAV ATTRIBUTABLE TO UNIT HOLDERS PER UNIT
-EX -DISTRIBUTION
85
(c)
TAIF:
Audited Income Statement for the financial years ended 31 May:
2010
RM
2009
RM
2008
RM
1,233,372
784,699
895,208
242,704
742,210
547,798
2,113,947
-
2,129,249
-
4,708,650
7,395
Investment income/(loss):
Gross dividend income
Profit income from Shariah-based deposits
and sukuk
Net realised gain on sale of Shariah-complaint
investments
Net gain on foreign exchange
Recovery of unquoted sukuk fully impaired in prior
financial year
58,779
-
-
3,648,802
3,656,158
6,159,051
967,455
51,598
6,500
1,200
26,818
725,344
38,685
6,750
5,300
24,571
731,786
39,029
513
6,500
2,800
25,474
1,053,571
800,650
806,102
Net income before taxation
Income tax expenses
2,595,231
(87,527)
2,855,508
(99,751)
5,352,949
(183,794)
Net income after taxation
2,507,704
2,755,757
5,169,155
Expenses:
Manager’s fees
Trustee’s fees
Custodian’s fees
Auditors’ remuneration
Tax agent’s fees
Administration fees and expenses
* Provision for impairment loss was in respect of defaulted fixed income securities issued by Memory Tech Sdn Bhd
Audited Balance Sheet as at 31 May:
2010
RM
2009
RM
2008
RM
63,920,354
1,352,579
59,079,485
660,151
51,530,704
1,265,519
65,272,933
59,739,636
52,796,223
14,159
5,125,810
494,692
3,799,125
13,089
3,580,792
5,139,969
4,293,817
3,593,881
60,132,964
55,445,819
49,202,342
133,620,449
129,213,836
104,771,332
0.4501
0.4291
0.4696
ASSETS
Shariah-compliant Investments
Other assets
Total Assets
LIABILITIES
Payables and accruals
Distribution payable
Total Liabilities
NAV ATTRIBUTABLE TO UNIT HOLDERS
NUMBERS OF UNITS IN CIRCULATION
NAV ATTRIBUTABLE TO UNIT HOLDERS PER UNIT EX -DISTRIBUTION
Note:
“The Shariah Adviser confirms that the investment portfolio of TAIF comprises securities which have been classified as Shariah-compliant by the Shariah Advisory
Council of the Securities Commission (“SACSC”). As for the securities which are not certified by the SACSC, they have reviewed the said securities and opine that these
securities are designated as Shariah-compliant.”
86
(d)
TIF:
Audited Income Statement for the financial years ended 31 July:
2010
RM
2009
RM
2008
RM
Investment income/(loss):
Gross dividend income
Interest income
Net realised gain/(loss) on sale of investments
Recovery of unquoted fixed income securities fully
impaired in prior financial year
139,959
115,267
78,019
263,510
182,558
(500,450)
182,159
228,427
1,076,283
11,756
-
-
345,001
(54,382)
1,486,869
120,548
6,429
4,000
1,000
11,669
122,624
6,540
4,250
2,500
13,141
152,033
8,109
617
4,000
2,500
13,286
143,646
149,055
180,545
201,355
(11,585)
(203,437)
(31,423)
1,306,324
(37,651)
(234,860)
1,268,673
Expenses:
Manager’s fees
Trustee’s fees
Custodian’s fees
Auditors’ remuneration
Tax agent’s fees
Administration fees and expenses
Net income/(loss) before taxation
Income tax expenses
189,770
Net income/(loss) after taxation
Audited Balance Sheet as at 31 July:
2010
RM
2009
RM
2008
RM
7,897,756
819,252
8,172,963
129,525
8,975,375
166,330
8,717,008
8,302,488
9,141,705
151,665
660,501
70,626
563,707
127,608
549,726
812,166
634,333
677,334
7,904,842
7,668,155
8,464,371
17,520,005
17,115,883
19,111,740
0.4512
0.4481
0.4429
ASSETS
Investments
Other assets
Total Assets
LIABILITIES
Payables and accruals
Distribution payable
Total Liabilities
NAV ATTRIBUTABLE TO UNIT HOLDERS
NUMBERS OF UNITS IN CIRCULATION
NAV ATTRIBUTABLE TO UNIT HOLDERS PER UNIT
-EX -DISTRIBUTION
87
(e)
TASF:
Audited Income Statement for the financial year ended 30 April:
2010
RM
2009
RM
2008
RM
380,944
223,106
(217,827)
49,025
372,532
405,952
1,493,301
104,973
784,348
503,192
8,575,359
(13,560)
35,267
-
-
(3,000,000)
470,515
2,376,758
6,849,339
341,043
18,000
6,500
7,500
17,508
320,486
18,000
6,650
2,750
16,663
552,073
25,763
6,500
2,750
23,775
390,551
364,549
610,861
79,964
(22,023)
2,012,209
(43,083)
6,238,478
(112,419)
57,941
1,969,126
6,126,059
2010
RM
2009
RM
2008
RM
22,280,810
1,526,543
18,685,288
1,874,112
25,054,869
1,903,034
23,807,353
20,559,400
26,957,903
334,175
37,414
219,151
334,175
37,414
219,151
NAV ATTRIBUTABLE TO UNIT HOLDERS
23,473,178
20,521,986
26,738,752
NUMBERS OF UNITS IN CIRCULATION
47,563,313
53,651,817
59,194,402
0.4935
0.3825
0.4518
Investment income/(loss):
Gross dividend income
Interest income
Net realized (loss)/gain on sale of investments
Net realised gain/(loss) on futures contracts
Recovery of unquoted fixed income securities
fully impaired in prior financial year
Provision for impairment loss*
Expenses:
Manager’s fees
Trustee’s fees
Auditors’ remuneration
Tax agent’s fees
Administration fees and expenses
Net income before taxation
Income tax expenses
Net income after taxation
Audited Balance Sheet as at 30 April:
ASSETS
Investments
Other assets
Total Assets
LIABILITIES
Payables and accruals
Total Liabilities
NAV ATTRIBUTABLE TO UNIT HOLDERS PER
UNIT
88
(f)
TAHGF:
Audited Income Statement for the financial year ended 31 March:
2010
2009
2008
RM
RM
RM
Gross dividend income
188,071
155,487
154,491
Interest income
Net realised gain/(loss) on sale of investment
33,777
303,383
137,444
(1,242,316)
89,115
2,002,074
Investment income/(loss):
Net gain on foreign exchange
Net realised gain on futures contracts
-
-
1,020
41,334
20,613
37,744
566,565
(928,772)
2,284,444
153,045
129,653
163,537
7,142
6,050
7,696
-
-
825
1,500
4,000
2,500
4,150
3,000
4,000
Expenses:
Manager’s fees
Trustee’s fees
Custodian’s fees
Tax agent’s fees
Auditors’ remuneration
Administration fees and expenses
15,588
13,744
18,233
181,275
156,097
197,291
Net income/(loss) before taxation
Income tax expenses
385,290
(29,218)
(1,084,869)
(29,706)
2,087,153
(28,421)
Net income/(loss) after taxation
356,072
(1,114,575)
2,058,732
2010
RM
2009
RM
2008
RM
10,413,325
436,792
7,058,568
789,780
9,541,051
648,007
10,850,117
7,848,348
10,189,058
6,633
664,360
26,669
413,673
8,903
-
670,993
440,342
8,903
NAV ATTRIBUTABLE TO UNIT HOLDERS
10,179,124
7,408,006
10,180,155
NUMBERS OF UNITS IN CIRCULATION
17,615,705
17,513,253
17,515,089
0.5779
0.4230
0.5813
Audited Balance Sheet as at 31 March:
ASSETS
Investments
Other assets
Total Assets
LIABILITIES
Payables and accruals
Distribution payable
Total Liabilities
NAV ATTRIBUTABLE TO UNIT HOLDERS PER
UNIT- EX-DISTRIBUTION
89
(g)
TADO:
Audited Income Statement for the financial year ended 31 January:
2010
RM
2009
RM
2008
RM
513,188
435,037
286,921
171,798
424,523
223,646
120,564
23,511
-
(2,727,415)
-
4,342,717
2,614
(2,000,000)
Investment income/(loss):
Gross dividend income
Profit income from Shariah-based deposits and
sukuk
Net realised gain/(loss) on sale of Shariahcompliant investments
Net gain on foreign exchange
Recovery of unquoted sukuk fully impaired
Provision for impairment loss*
Profit income on prepayment for private
placement
1,286
-
-
830,347
(1,867,855)
2,855,898
518,940
24,217
2,500
4,000
23,294
385,390
18,079
2,500
4,000
21,871
306,526
18,012
6,500
4,000
22,078
572,953
431,840
357,116
Net income/(loss)before taxation
Income tax expenses
257,394
(35,595)
(2,299,695)
(74,658)
2,498,782
(45,961)
Net income/(loss) after taxation
221,799
(2,374,353)
2,452,821
Expenses:
Manager’s fees
Trustee’s fees
Tax agent’s fees
Auditors’ remuneration
Administration fees and expenses
* Provision for impairment loss was in respect of defaulted sukuk issued by Memory Tech Sdn Bhd
Audited Balance Sheet as at 31 January:
2010
RM
2009
RM
2008
RM
Shariah-compliant Investments
Other assets
37,627,484
4,184,541
24,534,160
124,037
24,770,693
778,224
Total Assets
41,812,025
24,658,197
25,548,917
9,954
9,034
113,412
9,954
9,034
113,412
NAV ATTRIBUTABLE TO UNIT HOLDERS
41,802,071
24,649,163
25,435,505
NUMBERS OF UNITS IN CIRCULATION
90,703,259
70,874,491
49,977,215
0.4609
0.3478
0.5090
ASSETS
LIABILITIES
Payables and accruals
Total Liabilities
NAV ATTRIBUTABLE TO UNIT HOLDERS PER
UNIT
Note:
“The Shariah Adviser confirms that the investment portfolio of TADO comprises securities which have been classified as Shariah-compliant by the Shariah Advisory
Council of the Securities Commission (“SACSC”). As for the securities which are not certified by the SACSC, they have reviewed the said securities and opine that these
securities are designated as Shariah-compliant.”
90
(h)
TACP:
Audited Income Statement for the financial years ended 31 August:
2010
RM
2009
RM
2008
RM
1,729,582
2,297,735
2,978,072
Investment income/(loss):
Interest income
Realised loss on sale of unquoted corporate
bonds
-
-
(179,261)
1,729,582
2,297,735
2,798,811
342,325
48,066
2,000
6,500
3,992
391,810
54,854
2,000
6,650
4,266
409,300
57,302
4,000
6,500
4,366
403,883
459,580
481,468
Net income before taxation
Income tax expenses
1,325,699
-
1,838,155
-
2,317,343
-
Net income after taxation
1,325,699
1,838,155
2,317,343
Expenses:
Manager’s fees
Trustee’s fees
Tax agent’s fees
Auditors’ remuneration
Administration fees and expenses
Audited Balance Sheet as at 31 August:
2010
RM
2009
RM
2008
RM
61,510,030
459,339
115,602,574
616,951
82,550,848
505,143
61,969,369
116,219,525
83,055,991
37,562
-
121,883
4,326,999
45,223
3,329,154
37,562
4,448,882
3,374,377
61,931,807
111,770,643
79,681,614
117,590,017
216,349,951
152,016,158
0.5267
0.5166
0.5242
ASSETS
Investments
Other assets
Total Assets
LIABILITIES
Payables and accruals
Distribution payable
Total Liabilities
NAV ATTRIBUTABLE TO UNIT HOLDERS
NUMBERS OF UNITS IN CIRCULATION
NAV ATTRIBUTABLE TO UNIT HOLDERS PER
UNIT -EX -DISTRIBUTION
91
(i)
TAICP
Audited Income Statement for the financial years ended 31 August:
2010
RM
2009
RM
2008
RM
Investment income:
Profit income from Shariah-based deposits
44,273
404,579
299,830
44,273
404,579
299,830
10,459
4,893
2,000
4,000
3,113
66,810
18,000
2,000
4,150
2,889
44,128
18,000
4,000
4,000
2,940
24,465
93,849
73,068
Net income before taxation
Income tax expenses
19,808
-
310,730
-
226,762
-
Net income after taxation
19,808
310,730
226,762
2010
RM
2009
RM
2008
RM
620,457
64,709
20,698,797
55,115
24,902,036
157,209
685,166
20,753,912
25,059,245
7,500
15,556
87,991
7,500
15,556
87,991
677,666
20,738,356
24,971,254
1,276,656
39,026,577
47,547,081
0.5309
0.5314
0.5252
Expenses:
Manager’s fees
Trustee’s fees
Tax agent’s fees
Auditors’ remuneration
Administration fees and expenses
Audited Balance Sheet as at 31 August:
ASSETS
Shariah-compliant Investments
Other assets
Total Assets
LIABILITIES
Payables and accruals
Total Liabilities
NAV ATTRIBUTABLE TO UNIT HOLDERS
NUMBERS OF UNITS IN CIRCULATION
NAV ATTRIBUTABLE TO UNIT HOLDERS PER
UNIT
Note:
“The Shariah Adviser confirms that the investment portfolio of TAICP comprises securities which have been classified as Shariah-compliant by the Shariah Advisory
Council of the Securities Commission (“SACSC”). As for the securities which are not certified by the SACSC, they have reviewed the said securities and opine that these
securities are designated as Shariah-compliant.”
92
(j)
TASEA
Audited Income Statement for the financial period ended 30 November:
2009
RM
2008
RM
2007
RM
3,041,616
21,092
(6,698,939)
802,569
(73,037)
(1,149,577)
2,694,340
129,655
(8,401,280)
(1,174,693)
596,461
-
1,023,927
6,676
17,169,744
(224,418)
8,987
-
(4,056,276)
(6,155,517)
17,984,916
1,167,841
54,499
30,312
2,300
7,150
17,677
1,172,791
55,013
67,605
5,000
7,000
20,363
689,214
32,966
160,975
3,200
7,000
25,740
1,279,779
1,327,772
919,095
Net (loss)/income before taxation
Income tax expenses
(5,336,055)
(187,256)
(7,483,289)
(210,449)
17,065,821
(116.650)
Net (loss)/income after taxation
(5,523,311)
(7,693,738)
16,949,171
Investment income/(loss):
Gross dividend income
Interest income
Net realised (loss)/gain on sale of investments
Net unrealised gain/(loss) on foreign exchange
Net (loss)/gain on foreign exchange
Provision for impaiment loss *
Expenses:
Manager’s fees
Trustee’s fees
Custodian’s fees
Tax agent’s fees
Auditors’ remuneration
Administration fees and expenses
* Provision for impairment loss was in respect of suspended quoted equity securities outside Malaysia - Ferrochina Ltd
Audited Balance Sheet as at 30 November:
2009
RM
2008
RM
2007
RM
98,991,311
3,343,063
50,406,902
6,660,374
61,375,023
4,766,474
102,334,374
57,067,276
66,141,497
17,191
1,993,148
1,947,002
17,191
1,993,148
1,947,002
NAV ATTRIBUTABLE TO UNIT HOLDERS
102,317,183
55,074,128
64,194,495
NUMBERS OF UNITS IN CIRCULATION
210,730,935
193,375,037
96,200,765
0.4856
0.2849
0.6673
ASSETS
Investments
Other assets
Total Assets
LIABILITIES
Payables and accruals
Total Liabilities
NAV ATTRIBUTABLE TO UNIT HOLDERS PER
UNIT
93
(k)
TAGAAF
Audited Income Statement for the financial period ended 31 July:
2010
RM
2009
RM
2008
RM
198,872
14,992
(938,311)
(1,328,256)
340,446
150,480
55,544
(38,504)
1,133,238
105,676
238,000
49,495
2,421,025
(636,008)
47,737
(1,712,257)
1,406,434
2,120,249
271,829
18,000
13,035
1,500
4,000
15,001
270,387
18,000
16,932
5,000
4,150
14,886
315,872
22,972
13,667
3,500
4,000
17,368
323,365
329,355
377,379
Net (loss)/income before taxation
Income tax expenses
(2,035,622)
(26,916)
1,077,079
(22,574)
1,742,870
(30,178)
Net (loss)/income after taxation
(2,062,538)
1,054,505
1,712,692
2010
RM
2009
RM
2008
RM
15,039,404
275,927
22,891,102
167,532
21,426,359
5,699,567
15,315,331
23,058,634
27,125,926
111,860
66,197
295,879
111,860
66,197
295,879
NAV ATTRIBUTABLE TO UNIT HOLDERS
15,203,471
22,992,437
26,830,047
NUMBERS OF UNITS IN CIRCULATION
33,794,581
52,053,115
56,865,683
0.4499
0.4418
0.4719
Investment income/(loss):
Gross dividend income
Interest income
Net realised (loss)/gain on sale of investments
Net unrealised (loss)/gain on foreign exchange
Net gain on foreign exchange
Expenses:
Manager’s fees
Trustee’s fees
Custodian’s fees
Tax agent’s fees
Auditors’ remuneration
Administration fees and expenses
Audited Balance Sheet as at 31 July:
ASSETS
Investments
Other assets
Total Assets
LIABILITIES
Payables and accruals
Total Liabilities
NAV ATTRIBUTABLE TO UNIT HOLDERS PER
UNIT
94
(l)
TAIB
Audited Income Statement for the financial period ended 30 September:
2009
RM
2008
RM
2007
RM
241,138
290,868
202,575
211,954
333,334
622,065
(939,492)
324,750
730,478
(17,110)
(369,352)
121,016
1,564,706
(2,423)
(166,359)
100,787
568,828
358,756
2,321,351
231,217
18,000
8,341
5,600
5,150
16,903
322,120
18,000
10,371
3,800
5,000
18,541
445,504
20,790
11,429
2,000
5,000
17,383
285,211
377,832
502,106
Net income/(loss) before taxation
Income tax expenses
283,617
(15,006)
(19,076)
(13,449)
1,819,245
(11,143)
Net income/(loss) after taxation
268,611
(32,525)
1,808,102
2009
RM
2008
RM
2007
RM
14,727,902
2,959,041
16,119,411
124,717
28,648,746
2,221,479
17,686,943
16,244,128
30,870,225
47,705
-
202,879
773,432
2,518,639
-
47,705
976,311
2,518,639
NAV ATTRIBUTABLE TO UNIT HOLDERS
17,639,238
15,267,817
28,351,586
NUMBERS OF UNITS IN CIRCULATION
36,965,356
38,743,826
54,256,961
0.4772
0.3941
0.5226
Investment income/(loss):
Gross dividend income
Profit income from Shariah-based deposits and
unquoted Sukuk
Net realised (loss)/gain on sale of Shariahcompliant investments
Amortisation of premium on unquoted Sukuk
Net gain/(loss) on foreign exchange
Net unrealised gain on foreign exchange
Expenses:
Manager’s fees
Trustee’s fees
Custodian’s fees
Tax agent’s fees
Auditors’ remuneration
Administration fees and expenses
Audited Balance Sheet as at 30 September:
ASSETS
Shariah-complaint Investments
Other assets
Total Assets
LIABILITIES
Payables and accruals
Payable distribution
Total Liabilities
NAV ATTRIBUTABLE TO UNIT HOLDERS PER
UNIT
Note:
“The Shariah Adviser confirms that the investment portfolio of TAIB comprises securities which have been classified as Shariah-compliant by the Shariah Advisory
Council of the Securities Commission (“SACSC”) and/ or the Shariah Supervisory Board of Dow Jones Islamic Market Indexes. As for the securities which are not
certified by the SACSC and/or Shariah Supervisory Board of Dow Jones Islamic Market Indexes, we have reviewed the said securities and opine that these securities are
designated as Shariah-compliant.”
95
(m)
TAEURO
Audited Income Statement for the financial period ended 30 June:
2010
RM
2009
RM
2008
RM
48,746
(6,813,579)
191,895
(20,208,361)
604,163
(9,787,747)
(2,258,503)
(9,311,329)
220,327
617,559
6,294,131
-
(665,380)
13,373,146
-
(18,114,338)
(13,104,776)
3,524,182
496,942
59,109
3,500
4,000
14,747
579,099
62,033
3,000
4,000
15,271
1,449,156
160,033
2,500
4,000
18,432
578,298
663,403
1,634,121
Net (loss)/income before taxation
Income tax expenses
(18,692,636)
-
(13,768,179)
-
1,890,061
-
Net (loss)/income after taxation
(18,692,636)
(13,768,179)
1,890,061
2010
RM
2009
RM
2008
RM
Investment income/(loss):
Interest income
Net realised loss on sale of collective
investment schemes
Net (loss)/gain on foreign exchange
Net unrealised (loss)/gain on foreign exchange
Compensation received for pricing errors
Expenses:
Manager’s fees
Trustee’s fees
Tax agent’s fees
Auditors’ remuneration
Administration fees and expenses
Audited Balance Sheet as at 30 June:
ASSETS
Investments
Other assets
Total Assets
44,184,637
2,287,750
75,143,258
138,439
104,740,401
4,627,567
46,472,387
75,281,697
109,367,968
828,573
73,952
199,058
828,573
73,952
199,058
45,643,814
75,207,745
109,168,910
166,863,291
261,769,391
290,802,027
0.2736
0.2874
0.3755
LIABILITIES
Payables and accruals
Total Liabilities
NAV ATTRIBUTABLE TO UNIT HOLDERS
NUMBERS OF UNITS IN CIRCULATION
NAV ATTRIBUTABLE TO UNIT HOLDERS
PER UNIT
96
(n)
TAUF
Audited Income Statement for the financial period ended 30 June:
2010
RM
2009
RM
2008
RM
36,810
92,948
295,334
(14,365,778)
(3,496,022)
(12,243,813)
(6,820,086)
(444,972)
1,746,558
(269,754)
7,760,626
(30,068,803)
(5,425,552)
7,786,206
213,580
49,382
3,500
4,000
14,175
297,343
67,231
3,500
4,000
14,749
450,102
76,926
2,000
4,000
11,265
284,637
386,823
544,293
Net (loss)/income before taxation
Income tax expenses
(30,353,440)
-
(5,812,375)
-
7,241,913
-
Net (loss)/income after taxation
(30,353,440)
(5,812,375)
7,241,913
Investment income/(loss):
Interest income
Net realised loss on sale of collective
investment schemes
Net loss on foreign exchange
Net unrealised (loss)/gain on foreign
exchange
Expenses:
Manager’s fees
Trustee’s fees
Tax agent’s fees
Auditors’ remuneration
Administration fees and expenses
Audited Balance Sheet as at 30 June:
2010
RM
2009
RM
2008
RM
35,828,375
1,270,555
70,974,910
853,816
126,110,233
393,764
37,098,930
71,828,726
126,503,997
732,299
402,185
493,389
732,299
402,185
493,389
36,366,631
71,426,541
126,010,608
131,485,003
226,607,175
267,894,398
0.2766
0.3152
0.4704
ASSETS
Investments
Other assets
Total Assets
LIABILITIES
Payables and accruals
Total Liabilities
NAV ATTRIBUTABLE TO UNIT HOLDERS
NUMBERS OF UNITS IN CIRCULATION
NAV ATTRIBUTABLE TO UNIT HOLDERS
PER UNIT
97
(o)
TADF
Audited Income Statement for the financial period ended 30 April:
2010
RM
2009
RM
147,942
34,391
916,136
(182)
35,580
64,209
126,210
1,098,287
225,999
136,226
18,000
4,000
4,000
15,684
55,686
15,750
2,500
4,000
6,432
177,910
84,368
Net income before taxation
Income tax expenses
920,377
(7,636)
141,631
(1,337)
Net income after taxation
912,741
140,294
2010
RM
2009
RM
13,831,442
1,158,718
5,695,615
756,311
14,990,160
6,451,926
1,101,952
45,688
1,101,952
45,688
NAV ATTRIBUTABLE TO UNIT HOLDERS
13,888,208
6,406,238
NUMBERS OF UNITS IN CIRCULATION
25,751,128
12,237,975
0.5393
0.5235
Investment income/(loss):
Gross Dividend Income
Profit income from Shariah-based deposits
Net realised gain on sale of Shariah-compliant investments
Payment to Baitumal
Expenses:
Manager’s fees
Trustee’s fees
Tax agent’s fees
Auditors’ remuneration
Administration fees and expenses
Audited Balance Sheet as at 30 April:
ASSETS
Shariah-compliant Investments
Other assets
Total Assets
LIABILITIES
Payables and accruals
Total Liabilities
NAV ATTRIBUTABLE TO UNIT HOLDERS PER UNIT
Note:
“The Shariah Adviser confirms that the investment portfolio of TADF comprises securities which have been classified as Shariah-compliant by the Shariah Advisory Council of
the Securities Commission (“SACSC”). As for the securities which are not certified by the SACSC, they have reviewed the said securities and opine that these securities are
designated as Shariah-compliant.”
(p)
TAACCI
At the date of this report, no audited financial statements have been prepared for TAACCI as the Fund’s first financial
year end will fall on 30 September 2010.
(q)
TABRIC
At the date of this report, no audited financial statements have been prepared for TABRIC as the Fund’s first financial
year end will fall on 28 February 2011.
THE AUDITED FINANCIAL STATEMENTS OF THE FUND ARE DISCLOSED IN THE FUND’S ANNUAL REPORT.
THE ANNUAL REPORT OF THE FUND IS AVAILABLE UPON REQUEST.
PAST PERFORMANCE OF THE FUND IS NOT AN INDICATION OF ITS FUTURE PERFORMANCE
98
8. UNAUDITED FINANCIAL HIGHLIGHTS
The following are the unaudited Statement of Income and Expenditure and the Statement of Assets and Liabilities of TACF,
TASEA and TAIB:
Unaudited Income Statement
TACF
1/10/2009
To
30/9/2010
RM
TASEA
1/12/2009
To
30/9/2010
RM
TAIB
1/10/2009
To
30/9/2010
RM
561,841
105,468
3,243,325
12,972
154,232
117,286
59,098
(76,123)
-
4,450,368
126,341
1,124,641
(130,452)
650,284
7,833,006
1,265,707
417,934
35,000
6,500
1,500
20,132
1,367,117
63,799
42,830
5,830
2,399
15,136
235,962
18,000
8,149
5.000
1,800
25,637
481,066
1,497,111
294,548
Net income before taxation
Income tax expenses
169,218
(64,817)
6,335,895
(122,591)
971,159
(14,350)
Net income after taxation
104,401
6,213,304
956,809
Investment income/(loss):
Gross dividend income
Interest/profit income from Shariah-based
deposits and sukuk
Net realised gain on sale of investments
Net realised loss on futures contracts
Net gain/(loss) on foreign exchange
Expenses:
Manager’s fees
Trustee’s fees
Custody’s fee
Auditors’ remuneration
Tax agent’s fees
Administration fees and expenses
Unaudited Balance Sheet
TACF
30/9/2010
RM
TASEA
30/9/2010
RM
TAIB
30/9/2010
RM
27,844,257
2,384,017
111,098,091
3,496,173
12,210,737
1,670,459
30,228,274
114,594,264
13,881,196
613,893
632,008
877,329
613,893
632,008
877,329
NAV ATTRIBUTABLE TO UNIT HOLDERS
29,614,381
113,962,256
13,003,867
NUMBERS OF UNITS IN CIRCULATION
54,659,821
224,134,987
27,810,540
0.5418
0.5085
ASSETS
Investments
Other assets
Total Assets
LIABILITIES
Payables and accruals
Total Liabilities
NAV ATTRIBUTABLE TO UNIT HOLDERS
PER UNIT –EX-DISTIBUTION
99
0.4676
The following are the unaudited Statement of Income and Expenditure and the Statement of Assets and Liabilities of
TAHGF,TADO, TAACCI and TABRIC:
Unaudited Income Statement
TAHGF
1/4/2010
To
30/9/2010
RM
TADO
1/2/2010
To
30/9/2010
RM
TAACCI
4/5/2009
To
30/9/2010
RM
TABRIC
25/2/2010
To
30/9/2010
RM
126,505
13,346
617,320
133,440
1,799,960
47,719
72,351
647,303
2,010,523
(1,333,580)
(23,094)
(30,433)
-
(244,426)
-
(22,966)
-
756,721
2,761,283
221,954
74,010
76,888
3,588
1,998
996
7,807
442,015
20,627
2,672
908
17,174
1,222,329
65,191
5,000
4,000
2,073
89,675
3,986
4,320
2,640
10,594
91,277
483,396
1,298,593
111,215
Net profit/(oss) before taxation
Income tax expenses
665,444
(19,493)
2,277,887
(39,287)
(1,076,639)
-
(37,205)
(4,253)
Net profit/(loss) after taxation
645,951
2,238,600
(1,076,639)
(41,458)
TAHGF
30/9/2010
RM
TADO
30/9/2010
RM
TAACCI
30/9/2010
RM
TABRIC
30/9/2010
RM
9,373,903
975,718
44,634,936
853,600
55,062,541
171,225
9,871,162
179,483
10,349,621
45,488,536
55,233,766
10,050,645
292,462
524,622
2,199,563
45,023
292,462
524,622
2,199,563
45,023
NAV ATTRIBUTABLE TO UNIT HOLDERS
10,057,159
44,963,914
53,024,203
10,005,622
NUMBERS OF UNITS IN CIRCULATION
15,956,886
95,824,761
219,385,684
19,942,567
0.6303
0.4693
0.2418
0.5018
Investment loss:
Gross dividend income
Interest/profit income from Shariah-based
deposits and sukuk
Net realised gain/(loss) on sale of
investments
Net loss on foreign exchange
Net realised loss on futures contracts
Expenses:
Manager’s fees
Trustee’s fees
Auditors’ remuneration
Tax agent’s fees
Administration fees and expenses
Unaudited Balance Sheet
ASSETS
Investments and Deposits
Other assets
Total Assets
LIABILITIES
Payables and accruals
Total Liabilities
NAV ATTRIBUTABLE TO UNIT HOLDERS
PER UNIT
- EX-DISTIBUTION
Distribution of Income
The following are the distribution of income of the Funds during the unaudited period:
TACF
1/10/2009
Gross distribution per unit (sen)
Net distribution per unit (sen)
(i) Unit split
TASEA
1/12/2009
To
To
30/9/2010
30/9/2010
6.00
5.63
Nil
TAIB
1/10/2009
To
100
To
To
TAACCI
TABRIC
4/5/2010 25/2/2010
To
To
30/9/2010 30/9/2010 30/9/2010 30/9/2010 30/9/2010
-
1 : 10
TAHGF
TADO
1/4/2010 1/2/2010
2.50
2.49
Nil
Nil
3.00
2.92
Nil
Nil
Nil
9. FEES, CHARGES & EXPENSES
9.1
CHARGES DIRECTLY INCURRED ON SALE AND REPURCHASE OF UNITS
TAGF, TACF, TAIF, TIF, TASF, TAHGF,
TADO, TASEA, TAGAAF, TAIB, TAEURO,
TAUF & TADF
Name of Funds
Sales Charge per
Unit imposed by
IUTA
Sales Charge per
Unit imposed by
Unit Trust
Consultants
Sales Charge per
Unit imposed by
Manager
TABRIC
TAACCI
TACP &
TAICP
A maximum of 7% of the NAV per
Unit/amount invested of each Fund (rounded
to the nearest RM 0.01) is imposed.
A maximum of
5.50% of the NAV
per Unit/amount
invested
A maximum of
4.00% of the NAV
per Unit/amount
invested.
None
A maximum of 7% of the NAV per
Unit/amount invested of each Fund (rounded
to the nearest RM 0.01) is imposed.
A maximum of
5.50% of the NAV
per Unit/amount
invested
A maximum of
4.00% of the NAV
per Unit/amount
invested.
None
A maximum of 7% of the NAV per
Unit/amount invested of each Fund (rounded
to the nearest RM 0.01) is imposed.
A maximum of
5.50% of the NAV
per Unit/amount
invested
A maximum of
4.00% of the NAV
per Unit/amount
invested.
None
Repurchase
charge per unit
The Manager has no intention to impose any repurchase charge during the duration of this Master
Prospectus
Penalty Fee per
Unit (for TAACCI)
As a measure to discourage the fluctuation of NAV due to redemption which could be disruptive to Fund
performance, Unit Holders are subject to penalty fee, a maximum of 0.50% of the redemption proceeds
would be imposed if redemption is made within 30 calendar days from the date of investment.
All penalty fees charged will be retained by the Fund.
The penalty fee is the maximum rate which each of our distribution channels (IUTAs, Unit Trust
Consultants and Direct Investments through the Manager) can impose to investors.
Note: All charges disclosed are based on the prevailing NAV per Unit of the respective Funds.
THE MANAGER RESERVES THE RIGHT TO WAIVE AND/OR REDUCE THE SERVICE CHARGE/REPURCHASE
CHARGE FROM TIME TO TIME AT ITS ABSOLUTE DISCRETION. INVESTORS MAY BE ENTITLED TO A LOWER
SERVICE CHARGE/REPURCHASE CHARGE THROUGH THE SALES AND PROMOTIONAL CAMPAIGNS FROM
TIME TO TIME OR ALTERNATIVELY, INVESTORS MAY NEGOTIATE WITH THEIR PREFERRED DISTRIBUTOR
FOR LOWER CHARGES, SUBJECT TO THE RESPECTIVE CHANNELS’ DECISION.
Illustration on how the sales charge is calculated
Investment amount
RM
10,000.00
Add Sales Charge 5.50% of investment amount (5.50% X RM10,000)
RM
550.00
Total amount payable by investor
RM
10,550.00
Repurchase amount
RM
10,000.00
Less Repurchase Charge 0.00% of investment amount (0.00% X RM10,000)
RM
0.00
Total amount received by investor
RM
10,000.00
Illustration on how the repurchase charge is calculated
All payments will be rounded to the nearest two decimal points.
Illustration on how the penalty fee is calculated
Assuming that the date of investment is at 11/03/2010 and redemption is made on 31/03/2010, with the redemption/
repurchase request duly completed
Units Redeemed
NAV per Unit of the Fund
Units
20,000
RM
0.5000
Penalty Fee applicable
0.50% of NAV per Unit
Penalty Fee per Unit (0.50% X RM0.5000)
RM
101
0.0025
Total Penalty Fee incurred by investor (0.0025 X 20,000)
RM
50.00
Amount Redeemed (20,000 X 0.5000)
RM
10,000.00
Total redemption proceeds received by investor (RM10,000.00 – RM50.00)
RM
9,950.00
9.2
CHARGES INDIRECTLY INCURRED ON SALE AND PURCHASE OF UNITS
Annual Management Fee
The annual management fee is paid to the Manager. At present, we charge up to 1.50% per annum of the NAV of the Funds
except for TAGAAF, TAEURO, TAUF and TABRIC which we are charging 1.80% per annum of the NAV of the Fund(s) and for
TACP and TAICP which we are charging 0.50% per annum of the NAV of the Fund(s).
You will be notified in writing if the annual management fee is to be increased and a supplementary/replacement prospectus
disclosing the new higher rate of fees will be issued. We, however, do not intend to increase the annual management fee of the
Funds during the life of this Master Prospectus.
Subject to changes, sales commission paid by the Manager to individual and institutional agents will not exceed 100% of the
sales charge.
Annual Trustees Fees (actual rate excluding foreign custodian fee and charges)
Funds
Annual Trustee Fee
TAGF
BHLB Trustee Berhad is entitled to an annual fee of 0.06%per annum (first RM20million), 0.05% per annum
(next RM20million), 0.04% per annum (next RM20million), 0.03% per annum (next RM20million), 0.02% per
annum (next RM20million) and 0.01% per annum (any amount in excess of RM100million), which the NAV of
the Fund calculated on daily basis. Apart from that, BTB is entitled to registration and custodian fees of
RM18,000 per annum respectively.
TACF
BHLB Trustee Berhad is entitled to an annual fee of 0.10% per annum of the NAV of the Fund (subject to a
minimum of RM35,000 per annum).
TAIF
Universal Trustee (Malaysia) Berhad is entitled to an annual fee of 0.08% of the NAV of the Fund calculated on
daily basis.
TIF
Universal Trustee (Malaysia) Berhad is entitled to an annual fee of 0.08% of the NAV of the Fund calculated on
daily basis.
TASF
BHLB Trustee Berhad is entitled to an annual fee of 0.07% of the NAV of the Fund calculated on daily basis
(subject to a minimum of RM18,000 per annum).
TAHGF
Universal Trustee (Malaysia) Berhad is entitled to an annual fee of 0.07% of the NAV of the Fund calculated on
daily basis.
TADO
BHLB Trustee Berhad is entitled to an annual fee of 0.07% of the NAV of the Fund calculated on daily basis
(subject to a minimum of RM18,000 per annum).
TACP
BHLB Trustee Berhad is entitled to an annual fee of 0.07% of the NAV of the Fund calculated on daily basis
(subject to a minimum RM18,000 per annum).
TAICP
BHLB Trustee Berhad is entitled to an annual fee of 0.07% of the NAV of the Fund calculated on daily basis
(subject to a minimum RM18,000 per annum).
TASEA
BHLB Trustee Berhad is entitled to an annual fee of 0.07% of the NAV of the Fund calculated on daily basis
(subject to a minimum RM18,000 per annum).
TAGAAF
HSBC (Malaysia) Trustee Berhad is entitled to an annual fee of 0.07% of the NAV of the Fund calculated on
daily basis (subject to a minimum RM18,000 per annum).
TAIB
BHLB Trustee Berhad is entitled to an annual fee of 0.07% per annum of the NAV of the Fund calculated on a
daily basis subject to a minimum of RM18,000 per annum.
TAEURO
HSBC (Malaysia) Trustee Berhad is entitled to an annual fee of 0.08% of the NAV of the Fund calculated on
daily basis (subject to a minimum RM18,000 per annum).
TAUF
Mayban Trustees Berhad is entitled to an annual fee of 0.08% of the NAV of the Fund calculated on daily basis
(subject to a minimum RM18,000 per annum).
102
Funds
Annual Trustee Fee
TADF
Universal Trustee (Malaysia) Berhad is entitled to an annual fee of 0.08% of the NAV of the Fund calculated on
daily basis (subject to a minimum RM18,000 per annum).
TAACCI
HSBC (Malaysia) Trustee Berhad is entitled to an annual fee of 0.08% of the NAV of the Fund calculated on
daily basis (subject to a minimum RM18,000 per annum).
TABRIC
BHLB Trustee Berhad is entitled to an annual fee of 0.08% per annum of the NAV of the Fund calculated on a
daily basis subject to a minimum of RM18,000 per annum.
Illustration On How Annual Management Fee And Trustee Fee Are Calculated
RM
Total assets of the Fund as at 04/01/2010
96,753,078.37
Less: Total liabilities of the Fund as at 04/01/2010
2,279,486.96
94,473,591.41
Less:
Management Fee for the day (say 1.5% p.a.)
3,882.48
Trustee Fee for the day (say 0.07% p.a.)
181.18
NAV as at at 04/01/2010
94,469,527.75
Fund Expenses
Other expenses indirectly incurred by investors when investing in the Fund will be expenses directly related to the management
of the Fund such as commission paid to brokers, sub-custodian fee, auditors fee, valuation fee for valuation by independent
valuers for benefits of Fund, taxes etc. For further details, investors are advised to refer to the Deed of the Fund which is
available at the offices of the Manager and Trustees.
Switching Fee
You may invest in one or more Funds with complete flexibility to switch between the Funds. The switches are free and at NAV
to NAV, subject to availability of units. Switching from Shariah-based unit trust Funds to conventional Funds is discouraged,
especially to Muslim unit holders
When investors switch from TACP and TAICP (which are zero front-end Funds) to other Funds, sales charge of maximum 7.0%
of the NAV per Unit will be deducted before it is invested in the recipient Funds. There will be no sales charge if it had
previously incurred sales charge prior to switching to TACP and TAICP. Also there will be no sales charge imposed for
switching between TACP and TAICP. The Manager reserves the right to vary the terms of the switching facility.
For TAACCI, switching out of the Fund is not allowed within a 30 calendar day period from the date the investments were
made. Thereafter, switches are free and at NAV to NAV, subject to availability of Units. The Manager reserves the right to vary
the terms of the switching facility.
Transfer Fee
There will be an administrative charge of RM5 or any other amount as the Manager may deem appropriate.
Soft Commission
TAIM and the Trustees will not retain any rebate from, or otherwise share in any commission with any broker in consideration
for directing dealings in the investments of the Funds. All dealings with brokers are executed on best available terms.
Accordingly, the Manager will credit any commission and discount received in respect of investments, if any, to the Funds.
The Guidelines allow the Manager to receive soft commissions from brokers, which are of demonstrable benefit to the Unit
Holderss. This relates to the provision of on-line quotation services, worldwide financial markets and news services, which are
incidental to the investment management of the Funds. Such soft commissions received must be of demonstrable benefit to the
Unit Holderss.
THERE ARE FEES AND CHARGES INVOLVED AND INVESTORS ARE ADVISED TO CONSIDER THE FEES AND
CHARGES BEFORE INVESTING IN THE FUNDS.
103
9.3
TOTAL ANNUAL EXPENSES INCURRED BY THE FUNDS IN THE PRECEDING YEAR
Fund Name
Management Fee
Trustee Fee
Other Expenses
Total Annual
Expenses
Management
Expenses
Ratio (MER)
RM
%
RM
%
RM
%
RM
%
%
TAGF
623,562
1.50
58,647
0.14
28,743
0.07
710,922
1.71
1.71
TACF
417,934
1.50
35,000
0.13
28,132
0.10
481,066
1.73
1.73
TAIF
967,455
1.51
51,598
0.08
34,518
0.05
1,053,571
1.64
1.64
TIF
120,548
1.49
6,429
0.08
16,669
0.21
143,646
1.78
1.78
TASF
341,043
1.50
18,000
0.08
31,508
0.14
390,551
1.72
1.72
TAHGF
153,045
1.50
7,142
0.07
21,088
0.21
181,275
1.78
1.78
TADO
518,940
1.49
24,217
0.07
29,796
0.09
572,953
1.65
1.65
TACP
343,325
0.51
48,066
0.07
12,492
0.02
403,883
0.60
0.60
TAICP
10,459
0.12
4,893
0.05
9,113
0.10
24,465
0.27
0.27
TASEA
1,167,841
1.53
54,499
0.07
57,439
0.08
1,279,779
1.68
1.68
TAGAAF
271,829
1.29
18,000
0.09
33,536
0.16
323,365
1.54
1.54
TAIB
235,962
1.50
18,000
0.11
40,586
0.23
294,548
1.87
1.87
TAEURO
496,942
0.75
59,109
0.09
22,247
0.03
578,298
0.87
0.87
TAUF
213,580
0.35
49,382
0.08
21,675
0.04
284,637
0.46
0.46
TADF
136,226
1.50
18,000
0.20
23,684
0.26
177,910
1.96
1.96
1,222,329
1.98
65,191
0.11
11,073
0.02
1,298,593
3.25
3.25
TAACCI
N/A
TABRIC
*MER for TAACCI is based on 515 days
THE AUDITED FINANCIAL STATEMENTS OF THE FUND ARE DISCLOSED IN THE FUND’S ANNUAL
REPORT.
THE ANNUAL REPORT OF THE FUND IS AVAILABLE UPON REQUEST.
PAST PERFORMANCE OF THE FUND IS NOT AN INDICATION OF ITS FUTURE PERFORMANCE
104
10. TRANSACTION INFORMATION
10.1
PRICING POLICY
TAIM adopts the single pricing policy with entry fee method to price the units in relation to investment and repurchase of units.
This means that selling of units by TAIM (i.e. when you purchase units and invest in the Fund) and repurchase of units by TAIM
(i.e. when you redeem your units and liquidate your investment) will be carried out at NAV per Unit (the actual value of a unit).
The sales charge or repurchase charge (if any) would be computed separately based on your investment or repurchase
amount. The single price for investment and repurchase of units shall be the daily NAV per Unit at the next valuation point after
TAIM receives the investment or repurchase application (i.e., forward prices are used).
The NAV of the Fund is calculated every Business Day. It is the sum of the value of all investments and cash held by the Fund
(calculated in accordance with the Deed) including income derived by the Fund which has not been distributed to Unit Holders,
less all amounts owing or payable in respect of the Fund including any provisions that the Trustee or TAIM consider should be
made at the same valuation point.
Information on the Fund’s unit prices is available on our website www.tainvest.com.my or from our offices, the telephone
numbers for which are available in the Corporate Directory section of this Master Prospectus. Unit prices are also published
each day in major newspapers.
Illustration On How NAV And NAV Per Unit Fee Are Calculated
( For the Fund where the Annual Management Fee is 1.50% and Annual Trustee Fee is 0.08% )
Quoted Investment of the Fund
RM
134,370,000.69
Money Market Instrument
RM
638,537.00
Other Assets
RM
383,888.20
RM
135,392,425.89
Less Liabilities
RM
68,398.50
NAV before deducting Management Fee and Trustee Fee for the day
RM
135,324,027.39
Less Management Fee for the day (1.50% per annum)
RM
5,561.26
RM
296.60
RM
135,318,169.53
[(1.50% x RM135,324,027.39) ÷ 365 Days]
Less Trustee Fee for the day (0.08% per annum)
[(0.08% x RM135,324,027.39) ÷ 365 Days]
NAV
Units in circulation
270,000,000.00
NAV per unit
RM
0.501178406
NAV per unit (rounded up to four decimal places)
RM
0.5012
Determining the Investment Amount and Units Entitlement
The unit prices of the Funds are calculated every Business Day based upon the NAV of the Fund and the number of units in
circulation.
Investors may invest in any of the Funds managed by TAIM on any Business Day. The number of units allocated is determined
by dividing the investment amount (excluding sales charge), with the NAV per unit at the next valuation point after the
Management Company receives the investment application, rounded to the nearest four decimal places.
105
Determining the Investment Amount & Units Entitlement (After Initial Offer Period)
( For a Fund where the Sales Charge is 5.75% )
Payable by Investor
RM
10,000.00
Less: Sales Charge amount
RM
543.74
Net Investment Amount
RM
9,456.26
Sales Charge (5.75%)
For Funds which at the point of investment, the NAV per unit is RM0.5000, the number of units allocated rounded up to two
decimal places, would be:
Net Investment Amount
RM
9,456.26
Divided by NAV per unit
RM
0.5000
Number of units allocated
18,912.52
Hence, the effective investment cost per unit would be:
Total amount paid by investor
RM
Divided by number of units invested
10,000.00
18,912.52
Total investment cost per unit (including sales charge)
RM
0.5288
Therefore, the Sales Charge per unit would be the total investment cost per unit less NAV per unit
RM
0.0288
The Sales Charge paid as a % of the NAV per unit
5.75%
Determining the Repurchase Amount
Investors may repurchase their investment on any Business Day by giving the repurchase notice to the Management Company.
The repurchase amount is calculated by multiplying the NAV per unit at the next valuation point after TAIM receives the
repurchase application, with the number of units held.
Example: Determining the Repurchase Amount
( For a Fund where the Repurchase Charge is 0.00% )
Number of units to be repurchased
20,000.00
If for example, the NAV per unit calculated at the next valuation point was RM0.5000, the repurchase value, would be:
Multiply by NAV per unit
RM
0.5000
Repurchase value
RM
10,000.00
Less repurchase charge
RM
NIL
Net amount payable to investor
RM
10,000.00
For TAACCI
As a measure to discourage the fluctuation of NAV due to redemption which could be disruptive to the Fund’s performance,
investors a penalty fee will be levied upon the redemption proceeds of Unit Holders who redeem their Units within a period of
30 calendar days period from the date the investments were made. All penalty fees charged will be retained by the Fund.
Details of the penalty fee imposed by each of the distribution channels (IUTAs, Unit Trust Consultants and Direct Investments
through the Manager) are as follows:
Maximum Penalty Fee
Based on the NAV per Unit of the Fund
During the Initial Offer Period
Nil
Within 30 calendar days from the date of investment
0.50%
The Manager reserves the right to waive and/or reduce the penalty fee from time to time at its absolute discretion.
Below is an illustration of how the penalty fee will be calculated. Figures below are not actual and are for illustration purposes
only.
Assuming that the date of investment is at 11/03/2010 and redemption is made on 31/03/2010, with the redemption/repurchase
request duly completed
106
Units Redeemed
Units
NAV per Unit of the Fund
RM
Penalty Fee applicable
20,000
0.5000
0.50% of NAV per Unit
Penalty Fee per Unit (0.50% X RM0.5000)
RM
0.0025
Total Penalty Fee incurred by investor (0.0025 X 20,000)
RM
50.00
Amount Redeemed (20,000 X 0.5000)
RM
10,000.00
Total redemption proceeds received by investor (RM10,000.00 – RM50.00)
RM
9,950.00
10.2
WHAT DO I NEED TO CONSIDER BEFORE INVESTING?
Please note that TAIM may for any reason at any time, waive existing procedures, or introduce and implement new procedures
in respect of the Fund. This may apply either generally (for all investors) or specifically (for any particular investor) at its
discretion. Also note that different procedures may apply when an investor transacts Units via an IUTA authorised by TAIM.
TAIM has the absolute right to reject any application and/or request without any obligation to provide reasons for its
rejection.
Am I Eligible To Invest In The Fund?
The following are eligible to invest in the Fund:
a)
any individual over 18 years of age, investing individually or as joint unit holders using joint names;
b)
any child (i.e. any individual under 18 years old) provided the moneys are held by an adult on his or her behalf; and
c)
any institution including a company, corporation, co-operative, trust or pension fund.
How Much Do I Need To Invest?
There is no maximum limit on how much you may invest but generally the minimum initial investment is RM1,000 for the Funds.
However, the approved size of the Fund which represents the maximum number of units that may be purchased does vary from
one to another. The maximum size of the Fund may be increased subject to the approval of relevant authorities.
Where Can Investment Applications Be Made?
Applications can be made at TAIM’s head office in Kuala Lumpur or at any of its business centres. Alternatively, you may
approach the nearest branch of any of our IUTA throughout Malaysia. Also, for your convenience, the addresses and telephone
numbers of TAIM offices are listed in the Corporate Directory section of this Master Prospectus.
10.3
APPLICATION AND REDEMPTION
Purchase Of Units
Application must be made by completing the Account Opening Form and Investment Form which accompany this Master
Prospectus and they are available at all TAIM offices or at authorised collection centres.
The completed application forms, together with the remittance of moneys in the form of personal cheques, banker’s cheques,
bank drafts, money orders or postal orders must be submitted to the main business office of TAIM or at any of its branch offices
or authorised consultants. Bank charges, where relevant, for outstation cheques will be borne by investors. The validity of the
transaction is dependent upon clearance of the payment made to us. A copy of the applicant’s identity card or passport or other
document of identification must accompany the application for individual or joint-applicant. A copy of FIMM Pre-Investment
Form must be attached together with all the applications.
Application by a corporation must be accompanied by where applicable, a certified true copy of the Board Resolution,
Certificate of Incorporation, Memorandum and Articles of Association (M&A), Form 24, Form 44, Form 49, the latest Audited
Financial Statement, a list of the authorised signatories and their respective specimen signatures.
Any application forms received through fax will only be deemed complete after TAIM receives the original copy of the form
together with the remittance of moneys. Receipt of fax copy should not be an indication of acceptance of application or
completion of transaction. TAIM shall not be responsible for applications not processed as a result of incomplete transmission
of fax. Valid application received by TAIM’s office before 4.00 p.m, be it via fax, send in by post or walk-in, will be processed
based on NAV calculated at the end of the Business Day. Any application received after 4.00 p.m will be deemed to have been
received on the next Business Day. If application received on Saturday, the request will be processed based on the NAV
calculated after the close of the next Business Day, which in this case will normally be on Monday. Additionally, TAIM will not
accept EPF applications through fax. TAIM reserves the right to reject any application that is unclear, incomplete and/ or not
107
accompanied by the required documents. Incomplete applications will not be processed until all the necessary information has
been received.
For TACP & TAICP
For transaction of units, the price is based on the NAV established for the day following receipt of instruction by the Manager.
There is no sales charge imposed for TACP and TAICP; the NAV price will be rounded up to four decimal points. For example,
instruction received on Monday by the Manager would be based on the NAV for Tuesday, assuming both days are Business
Days.
The NAV price will also be published in major newspapers on the following Business Day.
The Units of the Fund(s) are allocated to you in accordance with the NAV Price on the Business Day as illustrated in the table
below:
Payment Mode
Timing
NAV based on:
Telegraphic Transfer
Funds must be cleared in our Account
by 4.00 p.m.
Next Business Day, when the application is processed.
Local Cheque
(Within Klang Valley)
Submission by 4.00 p.m.
Business Day cheque is cleared (usually within 2
Business Days after receipt of cheque).
Out of Town Cheque
Submission by 4.00 p.m.
Business Day cheque is cleared.
For example, if an investment of RM10,000.00 via telegraphic transfer with the Funds cleared in our account at or before 4.00
p.m. on 10 June 2010, the application will be processed on 11 June 2010. If the NAV on 11 June 2010 is RM0.5006, the
number of units credited into the investment account would be as follows:
Units credited
=
Investment
NAV
=
RM10,000.00
RM0.5006
=
19,976.03 units
For investment applications made via the EPF Member’s Investment Scheme, Units will be issued at the NAV Price Unit of the
Fund on the Business Day upon receipt complete document required. Units issued will be validated once EPF disburse the
payment to the Manager. The Manager reserves the right to reject any application that is incomplete and/or not accompanied
by the required documents.
Redemption
Withdrawals can be made by completing a Transaction Form available from any TAIM office and returning it to TAIM or by
sending written instructions to any TAIM office.
If you give us written instructions, your letter should include:
(a)
your Account Number;
(b)
the name of the Fund you wish to withdraw from; and
(c)
the number of units that you require [to withdraw or be repurchased]; and
(d)
instructions on what TAIM should do with the moneys (e.g. credit into your bank account or send a cheque to your
address).
Withdrawal requests sent in via fax are also accepted. Receipt of fax copy should not be an indication of acceptance of
withdrawal request or completion of transaction. TAIM shall not be responsible for withdrawal requests that are not processed
as a result of incomplete transmission of fax. TAIM reserves the right to reject any withdrawal request that is unclear,
incomplete and/ or not accompanied by the required documents. Investors are strongly advised to contact our Customer
Service to confirm receipt of instruction given by fax.
Any valid withdrawal request received by TAIM’s offices before 4.00 p.m. will be processed based on the NAV calculated at the
end of the Business Day on which the request to repurchase was received (“Forward Pricing”). A request received after 4.00
p.m. will be deemed to have been received on the next Business Day. If a request to withdraw was received on Saturday, the
request will be processed based on the NAV calculated at the close of the next Business Day, which in this case will normally
be Monday.
The redemption proceeds that you will receive is based on the units you have requested to be withdrawn multiplied by the NAV
calculated at the close of the Business Day as described above. Provided that the completed documentation is received with
the withdrawal request, the proceeds will be paid within ten (10) days according to your settlement instructions.
For investments made under the EPF Members Investment Scheme, redemption proceeds will be paid to the EPF to be
credited back into the investor’s EPF Account. For investors who have retired at the point of withdrawal, you may attach the
108
release of control letter from the EPF together with your withdrawal request to TAIM. In such a case, the redemption proceeds
will be paid according to your written instruction in the form.
In case of Joint Holders, TAIM will process the withdrawal request based on the operating instruction stated in the Account
Opening Form when you first invested.
Should there be any discrepancies between the published price and the price adopted by us, our price shall be adopted instead
of the price published in the newspapers. We can ensure that the prices forwarded to the newspapers are accurate; however
we cannot assume any responsibility or be liable for any error in the published prices.
For TACP & TAICP
The redemption proceeds of the Fund(s) are calculated to you in accordance with NAV per unit on the Business Day as
illustrated in the table below:
Redemption Instruction
Received by 4.00 p.m.
Repurchase Price
Based on same Business
application is processed.
Payment of Redemption Proceeds
Day,
when
Within 3 Business days from the date the
Application is processed.
The proceeds will be paid via telegraph transfer (for withdrawal amount of RM 50,000 and above) or cheque through the post to
the Unit Holder’s address.
For further details, please refer to the table on ‘How To Buy, Sell, Switch & Transfer’ on page 111.
10.4
SWITCHING
You may invest in one or more Funds with complete flexibility to switch between the Funds. The switches are free and at NAV
to NAV, subject to availability of units in the account. Switching from Shariah-based unit trust Funds to conventional Funds is
discouraged, especially to Muslim unit holders
Switching can be made by completing a Transaction Form available from any TAIM office and returning it to TAIM. The switch
will be effected by redeeming Units from the Fund in which the Units are held and investing the net proceeds in the other
Fund(s), subject to a minimum balance and terms and conditions applicable for the respective Fund(s). Units of the Fund being
switched will be liquidated at the NAV price per unit whilst units of the Funds acquired will be based on the NAV price per unit of
those Funds on the Business Day the investor’s request is received or deemed to have been received by the Manager.
When investors switch from TACP and TAICP (which are zero front-end Funds) to other Funds, a sales charge of maximum
7.0% of the NAV per unit will be deducted before it is invested in the recipient Funds. There will be no sales charge imposed for
switching between TACP and TAICP.
For TAACCI, switching out of the Fund is not allowed within a period of 30 calendar days period from the date the investments
were made. Thereafter, switches are free and at NAV to NAV, subject to availability of Units. The Manager reserves the right to
vary the terms of the switching facility. The Manager reserves the right to vary the terms of the switching facility.
10.5
TRANSFER OF UNITS
A transfer will be effected subject to the minimum balance and terms and conditions applicable for the respective Fund(s).
TAIM has the right to impose an administrative charge of RM5.00 or any other amount, as the Manager may deem appropriate.
10.6
COOLING-OFF PERIOD
There is a cooling-off period of six (6) Business Days from the day your application is accepted or deemed to be accepted by
TAIM. Within these six (6) Business Days, you have a right to request for withdrawal of the investment. The refund for every
unit held by you pursuant to the exercise of your cooling off right would 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.
All such requests must be received or be deemed to have been received by the Manager before 4.00 p.m. on a Business Day.
Otherwise, the requests will be treated as having been received the following Business Day.
If you submit your payment by cheque, the cooling-off period will accrue from the date on which the Manager receives the
cheque and payment for the cooling-off will be made after the cheque has been cleared. Subject to the EPF’s terms and
109
conditions, the cooling-off period for EPF investors will accrue from the date on which their complete applications are received
by the Manager and payment for the cooling-off will be made after the manager has received the money from EPF.
A cooling-off right is only given to an investor who is investing in any of the Funds managed by the Manager for the first time.
However, the following investors are not entitled to the cooling-off right as stipulated in the Guidelines:(a)
corporation or institution;
(b)
staff of the Manager; and
(c)
persons registered to deal in unit trusts of the Manager.
10.7
MODE OF DISTRIBUTION
Unit Holders may choose to receive any distributions declared by either of the following methods:
(a)
reinvestment of the distribution amount into additional units in the Fund based on the NAV per Unit on the Reinvestment
Date. No sales charge is imposed; or
(b)
cheque sent to the Unit Holder at the last correspondence address give to us.
Distributions will automatically be re-invested into additional units of the Fund if:
(a)
No distribution choice is made on the Investment form or Transaction form.
(b)
The distribution cheque is returned as unclaimed through the post.
(c)
The distribution cheque is uncashed after six (6) months from date of issue.
(d)
The distribution amount is less than RM50.00 or such amount determined by the Manager from time to time, and
(e)
The investment is made under EPF investment scheme.
In the absence of instructions to the contrary, distribution income from the Fund will be automatically reinvested, at no charge,
into additional Units of that Fund based on the NAV per Unit on the Reinvestment Date.
Unclaimed Money
For distribution cheques which are left unclaimed by Unit Holders upon lapse of the six months’ cheque validity period, the
Manager shall reinvest the distribution in the purchase of additional units of the Fund on their behalf at the NAV price per unit at
the end of the validity period. For other cases, the Manager shall retain the moneys for a further six (6) months and if still
unclaimed, shall deal with those moneys in accordance with the Unclaimed Moneys Act 1965.
* Any change in distribution instruction must be in writing. If this is done in the last 14 days prior to the distribution declaration
date of the Fund, the change will only take effect from the next distribution point, if any.
10.8
PAYMENT METHODS
Payment for the investment can be made together with the completed application form by any of the following methods:
(a)
Cheque/ Bank Drafts/ Money Order/ Cashier’s Order
Any of the above instruments drawn on a bank in Malaysia may be used to make payment for your investment. The
name to which the payment is to be made is:Fund (s)
Account Name
1. TACP
TA Investment Management Berhad –TACP
2. TAICP
TA Investment Management Berhad –TAICP
TA Investment Management Berhad
3. All funds except where indicated otherwise
(b)
Cash
Cash may be accepted when the purchase of units is done at TAIM’s Head Office subject to a maximum of RM1,000
per application.
*Note: The payment method by cash is subject to cancellation and/or any changes in TAIM’s internal policy.
(c)
EPF Members’ Savings Investment Scheme
Investors can invest via the EPF Members’ Savings Investment Scheme by obtaining Borang EPF 9N (AHL) and
Statement of Account which can be obtained from your nearest EPF office, and approach any of our TAIM offices.
110
(d)
Telegraphic Transfer
Funds via telegraphic transfer can be credited into our Maybank accounts according to the Funds as follows:
Fund (s)
Account Number
Account Name
1. TACP
5143 5671 1679
TA Investment Management Berhad TACP
2. TAICP
5643 5150 1744
TA Investment Management Berhad TAICP
3. All funds except where indicated otherwise
5143 5640 0987
TA Investment Management Berhad
INVESTORS ARE ADVISED NOT TO MAKE PAYMENT IN CASH WHEN PURCHASING UNITS OF THE FUND VIA ANY
IUTAS/ UNIT TRUST CONSULTANTS.
10.9
HOW TO BUY, SELL, SWITCH AND TRANSFER
Transaction
Initial
Investment
Documents Required
Minimum Amounts
Individuals:
§ Completed FIMM Pre-Invesment Form
§ Completed Account Opening Form (required if you
are a new applicant and/or adding/changing joint
applicant)
§ Completed Investment Form
§ Legible Copy of NRIC / Passport of each applicant
§ For applicants below 18 years of age
(Joint Holder), copy of identity card or birth
certificate is required
§ Proof of Payment
RM1,000 or 1000 Units for TAGF
RM1,000 for TACF, TAIF, TIF,
TASF, TAHGF, TADO, TASEA,
TAGAAF, TAIB, TAEURO, TAUF,
TADF, TAACCI, TACP, TAICP and
TABRIC
EPF Investments:
§ Completed FIMM Pre-Investment Form
§ Completed Account Opening Form (required if you
are a new applicant and/or adding/changing join
applicant
§ Completed Investment Form
§ Legible Copy of NRIC
§ Completed EPF 9N (AHL) Form
Documents to be
received by investors
§ Successful
Applicants will be
issued a Transaction
Advice Slip
§ Unsuccessful
applicants will be
notified & application
money will be
refunded within thirty
(30) days of receipt
of the application.
Corporate Investments:
§ Completed Investment Form
§ Completed Account Opening Form
§ A certified true copy of the Board Resolution with
list of Authorised signatories and company seal (if
applicable), Certificate of Incorporation, Merging
and Acquisition, Form 24, 44 and 49.
§ The latest Financial Statement
§ Proof of payment
Additional
Investments
RM100 or 100 Units for TAGF
Individuals:
§ Completed Investment Form
§ Proof of Payment
Transaction Advice Slip
RM100 for TACF, TAIF, TIF,
TASF, TAHGF, TADO, TASEA,
TAGAAF , TAIB, TAEURO, TAUF,
TADF, TAACCI and TABRIC
EPF Investments:
§ Completed Investment Form
§ Legible Copy of NRIC
§ Completed EPF 9N (AHL) Form
RM1,000 for TACP & TAICP
Corporate Investments:
§ Completed Investment Form
§ A certified true copy of Board Resolution with list
of Authorised signatories and company seal (if
applicable)
§ Proof of Payment
Repurchase
(Sell)
§ Completed & Signed Transaction Form OR
§ Written instructions clearly stating account
number, Fund’s name, the number of units to be
sold and settlement instructions
§ Legible Copy of NRIC (if applicable)
500 Units
§ Redemption cheque
§ Acknowledgement
letter
§ Transaction Advice
Slip
Switch
Individuals:
§ Completed Transaction Form
§ Completed FIMM Pre-Investment Form ( for
500 Units
Transaction Advice Slip
111
switching to new Investment Fund)
EPF Investments:
§ Completed Transaction Form
§ Completed FIMM Pre-Investment Form ( for
switching to new Investment Fund)
Corporate Investments:
§ Completed Transaction Form
§ A certified true copy of Board Resolution with list
of Authorised signatories and company seal (if
applicable)
Transfer
§ Completed and signed Transfer From
§ Completed Account Opening Form for the opening
of new account for transferee (if the transferee is
not an existing account holder)
§ Legible copy of NRIC.
Cooling-Off
§ Completed Cooling-Off Form OR
§ Written instructions clearly stating your intention to
cool off the transaction, the value of investment,
Fund’s name and instruction.
500 Units
Transaction Advice Slip
N/A
§ Transaction Advice
Slip
§ Payment for coolingoff
§ Cooling-off
notification letter.
There are no restrictions as to the frequency of repurchase or switching to be made on any of the Funds mentioned above.
Note:
In the case of a partial redemption of units, switching or transfer, the minimum balance that must be retained in a Fund is 500
units. If the number of units in the Fund drops below the minimum balance, due to repurchase, switching or transfer out, further
investments will be required within one (1) month until the balance of the investment is restored to at least the minimum
balance. Failure to maintain the minimum balance empowers TAIM to withdraw your entire investment in the Fund concerned
and forward the proceeds to you.
10.10
ADDITIONAL INFORMATION
Availability Of Information On Investment
When you invest in any of the Funds, the Manager will undertake to send you the following:•
Written confirmation on all transactions and income distributions;
•
Unaudited interim report for the half year of the Fund’s financial year; and
•
Annual audited report for the Fund’s financial year-end.
In addition, investments can be monitored easily as the Fund’s prices are published daily in major newspapers.
Customer Service
If you have any questions about the information in this Master Prospectus or would like to know more about investing in TAIM’s
family of investment Funds, please contact our authorised consultants/distributors or call TAIM’s Customer Service Officers on
toll free 1-800-38-7147 between 9.00 a.m. and 6.00 p.m., from Monday to Friday (except public holidays).
Investors would also be able to obtain the latest information on our Funds as well market updates on our website,
www.tainvest.com.my.
Distribution Channels Where Units Can Be Purchased Or Redeemed
The Funds are distributed via the following channels:
•
TAIM’s authorised Consultants
•
Other IUTAs
The addresses and contact numbers of the head office, branches of TAIM and the approved IUTAs are disclosed in the
Corporate Directory.
TA Investment@A-Click Plus!
Is an online service that assists you in the administering and tracking of your Unit Trust investments more effectively and
efficiently at our website, www.tainvest.com.my. There is no registration fee.
For security and compliance purposes, corporate investors who wish to register with the facilities are required to complete a
hardcopy user application form that will be made available online.
112
11. THE KEY PEOPLE BEHIND TA INVESTMENT
11.1
THE MANAGER
The Manager of the Fund is TA Investment Management Berhad (TAIM). TAIM was incorporated on 17 April 1995 under the
Companies Act, 1965 and commenced operations on 1 July 1996. TASH, a wholly owned subsidiary of TAE, is the holding
company of TAIM. TAE, an investment holding company listed on Bursa Malaysia, has years of exposure and experience in
investing in the Malaysian securities markets.
The principle activities of TAIM are the establishment and management of unit trust funds and portfolio clients. TAIM has more
than forteen-(14) years experience in managing unit trust funds. Currently, TAIM manages eighteen (18) unit trust Funds
namely TA Growth Fund, TA Comet Fund, TA Islamic Fund, TA Income Fund, TA Small Cap Fund, TA High Growth Fund, TA
Dana OptiMix, TA CashPLUS Fund, TA Islamic CashPLUS Fund, TA South East Asia Equity Fund, TA Global Asset Allocator
Fund, TA Asia Pacific Islamic Balanced Fund, TA European Equities Fund, TA Global Utilities Fund, TA Dana Fokus, TA North
Asian Opportunities Capital Protected Fund, TA All-Cycle Commodities Income Fund and TA BRIC & Emerging Markets Fund.
Apart from being able to tap into the expertise of the staff and financial resources of its shareholders, TAIM has a staff capacity
of fifty-three (53) persons comprising forty-four (44) executives and nine (9) non-executives. As at 30 September 2010, the fund
size managed by TAIM (excluding private client portfolio) stood at RM633.7 million.
11.2
FUNCTIONS AND RESPONSIBILITIES OF THE MANAGER
TAIM is responsible for the day to day management of the Fund and for the development and implementation of appropriate
investment strategies. The main tasks performed by TAIM include:
managing investments portfolio
processing the sale and repurchase of units;
keeping proper records for the Fund;
valuing investments of the Fund; and
distributing income and additional units to the Unit Holders.
•
•
•
•
•
11.3
SUMMARY OF TAIM’S FINANCIAL POSITION
Issued and paid-up capital
Shareholders’ funds
Revenue
Year Ended
Year Ended
Year Ended
31/01/10
31/01/09
31/01/08
(RM)
(RM)
(RM)
6,001,000
6,001,000
6,001,000
12,847,541
12,615,925
13,067,853
26,775,939
12,539,375
10,044,417
Profit/(loss) before tax
132,073
(395,942)
1,494,615
Profit/(loss) after tax
231,616
(451,928)
937,360
11.4
BOARD OF DIRECTORS
Mr. Choo Swee Kee, CFA (Non-Independent)
He joined the TA Group in July, 2005 as Deputy Chief Investment Officer. He was promoted to his current role of Chief
Investment Officer in December 2006 where he is responsible for implementing the investing strategy of funds and managing
the Company’s portfolio. After graduation, he joined the accounting group, Coopers & Lybrand in 1987 as a senior. Between
1990 and 1999, Mr Choo gained valuable knowledge and experience in the investment line working for Chase Manhattan Bank,
N.A. in Singapore, Schroders Investment Management (Singapore), Vickers Ballas Research (Malaysia) and Daiwa Securities
Adviser (Malaysia). Prior to joining TA Group, he was the Chief Investment Officer of KLCS Asset Management Sdn Bhd. He
has more than 16 years of investment managerial experience and has actively participated in the management of equity and
balanced funds for both institutional and private clients. Mr Choo earned a BBA from the National University of Singapore and
holds the CFA designation.
Dr. Wong Hong Meng, (Independent)
He is a Fellow of the Institute of Chartered Accountants in England and Wales and an Associate of the Institute of Chartered
Secretaries and Administrators. In addition he holds an honours degree in economics from the University of Malaya, a Master
of Business Administration from Cranfield University and a Doctor of Business Administration from the University of South
Australia. His more than 31 years experience had been in management consultancy, merchant banking, commercial banking
113
and stock broking. He started his career with Coopers & Lybrand Associates. In 1980 he was appointed by Sri Sultan
Hamengku Buwono IX, the then Vice-President of the Republic of Indonesia, as advisor to a special task force to restructure a
number of companies in which Sri Sultan had interest in. Later he was the head of corporate finance at D&C Sakura Merchant
Bankers followed by almost ten years in a top management position at the Pacific Bank Berhad. In 1994, he joined TA
Securities Berhad as a Senior General Manager before his appointment as an Executive Director of TAE from 1995 till his early
retirement in 1999.
Pn. Rahmah Binti Mahmood, (Independent)
She graduated with a Bachelor of Science in Marketing and a Bachelor of Science in Mass Communications from Syracuse
University, New York. Thereafter, she obtained Master in Financial Journalism from University of Southern California (USC). Pn
Rahmah holds the position of Chairman and Managing Director of Syarikat Mahmood Ambak & Sons Sdn Bhd since 1988. She
is also a shareholder and plays an active role on the Board of Malaysian Automotive Lighting Sdn Bhd, a global manufacturing
partnership with Automotive Lighting Reutlingen Gmbh, Germany. Recently, Pn Rahmah has been assisting The Malaysian
Cultural Arts, promoting productions such as Putri Gunung Ledang. Pn Rahmah also sits on the Board of TAE, Spanfield Sdn
Bhd and Clearwater Towers Sdn Bhd, an environmental company.
11.5
KEY MANAGEMENT PERSONNEL
Mr. Wong Mien, Chief Executive Officer
He is responsible for the overall direction and supervision of the company. He graduated from the University of Malaya with a
Bachelor of Science (Honours) majoring in Mathematics in 1987, then qualified as a Certified Financial Planner (CFP) in 2003.
He has since garnered over 21 years of experience in the financial industry while working with American International
Assurance Berhad, HLB Unit Trust Management Berhad and Alliance Investment Management Berhad. This included being
involved in the management of a unit trust company while serving as the General Manager of KL City Unit Trust Berhad from
2002. He took the helm at TAIM in March 2008.
Mr. Azman Ali, Head of Compliance
He is the designated person responsible for the compliance matters of the company and funds under management. He
graduated from International Islamic University Malaysia, with a Bachelor of Laws (Hons) Degree in 1995. He has more than 12
years experience in the unit trust industry and has the necessary knowledge pertaining to Shariah matters. He also assists the
company on product development, legal and operational matters
Ms. Tee Ling Ling, Head of Institutional Unit Trust Advisors (IUTA)
She is responsible for the sales and marketing of the TAIM unit trust funds that are distributed through the IUTAs. Ms Tee holds
Bachelor of Business Administration (Hons) Degree in Finance from University Kebangsaan Malaysia. She has more than 9
years of experience in financial services industry covering a diverse range of areas ranging from branch servicing, treasury
processing as well as private banking sales support. Prior to her current position, she was serving as a Relationship Manager in
one of the top three unit trust company in Malaysia.
Ms. Rachel Than Kit Wan, Head of Customer Service and Communications
She has been involved in the industry for more than 8 years. She is responsible for brand building strategies planning,
developing, executing effective marketing activities, and exposure to various aspects of delivering excellent customer service.
She holds a diploma in Mass Communications, majoring in Integrated Marketing. Prior to joining TAIM, she was attached to
CrunchTime Culinary Services, a subsidiary company of AirAsia as a Communications Executive.
Ms. Joanne Lim Yin Yin, Head of Finance
She holds a Bachelor of Arts (Honours) degree in Accountancy and Finance from University of Abertay Dundee (UAD). She is
responsible for the accounting of the unit trust funds of the Company which include unit trust daily pricing, valuation of unit trust
funds, preparation of all the required fund reports and coordination of works with internal and external auditors. She has more
than 9 years of working experience in unit trust industry.
Mr. Allen Yap Hui Hock, Head of Agency
He has been involved with stock market and investment industry since 1996. He has more than 16 years experience in the
financial services industry. In 1998, Allen achieved the best overall student in Diploma with Research Institute and Investment
Analysis of Malaysia (RIIAM) organized by KLSE and RMIT University of Australia. He achieved his MBA in Personal Financial
Planning from USQ University of Southern Queensland, Australia and Degree with Distinction in Business and Business
Administration from RMIT, Australia. Allen has been involved with Financial Planning Industry in Malaysia since 2001 and has
acted as a Program Manager for Financial Planning Association of Malaysia (PFAM) and as the co-writer for CFP, module 1.
114
11.6
INVESTMENT COMMITTEE
Main Functions of the Investment Committee
The Investment Committee’s main responsibility is to formulate, implement and monitor the investment management policies of
the investment managers to achieve the investment objective of a particular Fund. The Committee meets at least once a
month.
The investment committee members have years of experience in overseeing the investment management functions as required
by the pertinent guidelines.
Mr. Choo Swee Kee (Non-Independent) as aforementioned.
Dr. Wong Hong Meng (Independent) as aforementioned.
Mr. Yaw Chun Soon (Non-Independent)
He holds a Bachelor of Laws Degree from University of Canterbury, New Zealand. In 1987, he was called to the Malaysian Bar
and practiced law as an Advocate & Solicitor of the High Court of Malaya. His legal practice experience was mainly in the areas
of corporate, commercial and property. On 19 November 1999, he was appointed to the Board of TA Securities Berhad (now
known as TA Centre Berhad). Subsequently with the merger of the four stockbroking companies, he was appointed the
Executive Director Operations of TA Securities Holdings Berhad, a public company on 16 August 2004, a position he held till 6
October 2009 and he then resumed his position as Executive Director of TA Securities Holdings Berhad on 28 December 2009.
He was then appointed to the Board of TA Enterprise Berhad as Executive Director on 7 October 2009, a position he holds todate. Healso sits on the Boards of Asian Outreach (M) Berhad, a public company; TA Foundation, a charitable public company
which is wholly-owned by TA Enterprise Berhad and a number of companies within the TA Enterprise Berhad Group.
Mr. Tay Kian Chuan (Independent)
He has years of experience in the finance and stockbroking industry. He was the Chief Forex and Money Market Dealer for
D&C Bank in Kuala Lumpur. This was followed by a term as the Corporate Finance Assistant Manager in Nomura Bank, Senior
Manager and Treasurer of BSN Commercial Bank and Senior Manager at Pengkalen Securities, a local stockbroking firm.
Subsequently, he was appointed the Executive Director of Wonway Sdn Bhd, a manufacturing company. He is presently a
director of a few private companies.
Puan Nor Asma Mohamed, (Non-Independent) a Senior Manager of TASH (only for TAIF, TADO, TAICP, TAIB, TADF and
TABRIC)
She holds a Diploma in Investment Analysis from Mara University of Technology (UiTM). She joined TA Securities Bhd in 1987
as a dealer’s representative and subsequently she was appointed as Manager of TA Securities Dealing Department in 1994.
Pn. Nor Asma has an experience in the trading activities for institutional and retails clients both local and foreign for the local as
well as overseas markets. She is also involved in the recruitment & training for both dealer’s representatives and remisiers of
TASH.
En. Attan Akmar Masbah, (Non-Independent) is the Executive Director (Dealing) of TASH (only for TAIF, TADO, TAICP, TAIB,
TADF and TABRIC)
He has a Bachelor of Economics (Hons) and Associate Institute of Bankers Malaysia. He started his career as Assistant
Manager at Citibank N.A. Penang and subsequently as General Manager at Perwira Affin Bank, Kuala Lumpur. Hence, he has
an experience in financial industry especially in banking and stockbroking.
11.7
INVESTMENT TEAM
The Investment Team is responsible for managing, realising, investing or howsoever dealing in accordance with the investment
objectives of the Fund. The Investment Team shall have discretionary authority over the investments of the Fund subject to the
Securities Commission Guidelines on Unit Trust Funds, the relevant securities laws, the internal procedures as well as the
direction of the investment committee of the Fund.
The investment team of TAIM is headed by the Chief Investment Officer, Mr Choo Swee Kee who is also the designated person
responsible for the investment management of the Fund. The team will report directly to the Investment Committee on a regular
basis on the status of the portfolio of the Fund, proposed investment strategy and discuss matters relating to the portfolio.
The main personnel in the investment team are:
Mr. Choo Swee Kee, as aforementioned.
Ms. Vivien Loh Jee Wae, Deputy Chief Investment Officer of TAIM
Ms Vivien Loh holds a Bachelor of Science (Hons) in Economics and Management, University of London. She started her
career in Kumpulan Sentiasa Cemerlang Sdn Bhd as an Investment Analyst responsible for carrying research on Malaysian
115
equities and sectorial research. She was then promoted as the Investment Manager in the same company for five years. Prior
to joining TAIM, she was attached to TA Asset Management Sdn Bhd (“TAAM”) as a Fund Manager. At TAAM, she was
responsible in managing, conducting research and analysis of the market and companies for the decision making process on
investments to be made.
11.8
THE SHARIAH ADVISER
(With reference to TAIF, TADO, TAICP, TAIB, TADF & TABRIC)
General Information of IBFIM
IBFIM was incorporated as a private limited liability company in Malaysia under the Companies Act, 1965 on 13 April 1995.
IBFIM’s establishment is in line with Malaysia’s target to become a regional and international centre of Islamic finance. IBFIM
promotes and facilitates the understanding and appreciation of the philosophy and principles of Islamic financial
system. IBFIM is registered with the SC to act as a Shariah Adviser for Shariah-based collective investment schemes
and sukuk issuance. IBFIM is also involved in numerous Shariah-based private mandates as well as the Shariah
Adviser for prominent Islamic REITs.
IBFIM’s paid-up capital is RM10, 000,001.00. As at 30 September 2010, IBFIM has total staff strength of 8 employees, and has
59 funds under its supervision.
Roles and Responsibilities of IBFIM as the Shariah Adviser
As the Shariah Adviser, the role of IBFIM is to ensure that the operations and investments of the funds are in compliance with
Shariah requirements. The Shariah Adviser reviews the funds’ investments on a monthly basis to ensure compliance
with Shariah requirements at all times and meets with the Manager on a quarterly basis to review and advise on the
funds’ compliance with Shariah requirements. Final responsibility for ensuring Shariah compliance of the funds with
Shariah requirements in all relevant aspects rests solely with the Manager.
In line with the Securitises Commission (“SC”) Guidelines, the roles of IBFIM as the Shariah Adviser are;
1.
ensuring that the Shariah-based unit trust funds (“the Funds”) are managed and administered in accordance with the
Shariah principles;
2.
providing expertise and guidance for the Funds in all matters relating to Shariah principles, including on the Funds’
deed and prospectus, its structure and investment process, and other operational and administrative matters;
3.
consulting the SC who may consult the Shariah Advisory Council where there is any ambiguity or uncertainty as to
an investment, instrument, system, procedure and/or process;
4.
scrutinising the Funds’ compliance report as provided by the compliance officer, transaction report provided by or
duly approved by the trustee and any other report deemed necessary for
the purpose of ensuring that the Funds’
investments are in line with the Shariah principles;
5.
preparing a report to be included in the Funds’ interim and annual report certifying whether the
managed and administered in accordance with the Shariah principles;
6.
ensuring that the Funds comply, with any guideline, ruling or decision issued by the SC, with regard to Shariah
matters;
7.
vetting and advising on the promotional materials of the Funds; and
8.
assisting and attending to any ad-hoc meeting called by the SC and/or any other relevant authority.
The Shareholding Interests in IBFIM are as follows:
§
§
§
§
§
§
§
§
§
§
§
§
§
Bank Negara Malaysia (Special Shareholder)
BIMB Holdings Berhad
AmInvestment Bank Berhad
Malayan Banking Berhad
Alliance Bank Malaysia Berhad
Affin Bank Berhad
Bank Muamalat Malaysia Berhad
EON Bank Berhad
Hong Leong Islamic Bank Berhad
Public Bank Berhad
RHB Islamic Bank Berhad
CIMB Bank Berhad
Etiqa Takaful Berhad
116
Funds have been
Profile of the Shariah Team
IBFIM’s Shariah Team consist of the following personnel:
Mohd Bakir Haji Mansor (Distinguished Shariah Advisor)
Mohd Bakir Haji Mansor is a member of the Shariah Supervisory Council of Bank Islam Malaysia Berhad (BIMB), the Shariah
Advisory Body of Syarikat Takaful Malaysia Berhad and sits on the Shariah Panel Committee of Amanah Ikhtiar Malaysia
(AIM). He is also the Chairman of the Shariah Advisory Committee of BIMB Securities Sdn. Bhd as well as Shariah
Advisory Committee of the Association of Islamic Banking Institute Malaysia (AIBIM) and also a Shariah Adviser of
Employees Provident Fund (EPF).
Prior to joining IBFIM, Mohd Bakir was the Shariah Coordinator at BIMB, a post he held since 1984. Previously, he served at
the National Council for Islamic Religious Affairs in the Prime Minister's Department for 10 years from 1971. He was also the
Chief Assistant Directors at the Islamic Research Centre for 4 years from 1980. He holds a Shahadah Ulya from Kolej Islam
Malaya.
Mohd Nasir Ismail (Senior Shariah Fellow)
Mohd Nasir Ismail, IFP, joined the Institute in July 2001. He is responsible in providing Shariah input on the advisory,
consultancy and research functions with regard to Islamic banking, takaful, Islamic capital market and Shariah-based unit trust
funds. Prior to joining IBFIM, he was with Institut Pengajian Ilmu-Ilmu Islam, Kelantan. He graduated with a Bachelor of
Shariah (Honours) from the University of Malaya in 1998. He is also the designated person responsible for Shariah matters
related to the funds.
11.10
MATERIAL LITIGATIONS AND ARBITRATIONS
As at the 30 September 2010, TAIM is not engaged in any material litigation and 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 Manager and any of its delegates.
11.11
POLICY ON MONEY LAUNDERING
A customer acceptance procedure, which includes the identification and verification of identity of new customers, is conducted
prior to entering into the relationship by risk-based approach. Information, documents and evidences will be obtained
depending on the types of applicant i.e. individual or corporate clients, etc. The classification of customer is based on Customer
Due Diligence (CDD) risk matrix whereby customers are classified into one of the three risk level according to their background
and investment threshold. The normal risk customers are required to undergo a standard CDD procedure while the increased
risk customers are required to undergo an enhanced CDD procedure. Customers who are categorized as unacceptable risk
level are not accepted.
Any suspicious transactions for Anti Money Laundering and Anti-Terrorist Financing will be reported to the Compliance Officer
within the Manager as well as to the local regulators. All employees involved with customers and in processing transactions are
required to adhere to these policies and procedures.
11.12
DELEGATED FUNCTION
Citibank Malaysia was established on August 26, 1959, as First National City Bank, with its first branch at Medan Pasar, Kuala
Lumpur. Citi was the first American bank to open a branch in the country. In 1994, Citi became a locally incorporated Malaysian
company, Citibank Berhad, making it the first American bank to become locally incorporated. Citibank Berhad is a wholly owned
subsidiary of Citibank N.A. Citibank Malaysia (Labuan) Ltd. operates an offshore banking unit.
Citibank Malaysia’s custody services business is carried out through Citigroup Nominee (M) Sdn Bhd, which was incorporated
on July 16, 1985 as a subsidiary of Citibank N.A. Malaysia. On July 1, 1994, Citibank Berhad was incorporated under the
Banking and Financial Institutions Act 1989. The incorporation exercise resulted in Citibank Berhad as sub-custodian in
Malaysia for Citibank N.A.
Citi, the leading global financial services company, has some 200 million customer accounts and does business in more than
100 countries, providing consumers, corporations, governments and institutions with a broad range of financial products and
services.
Citi is composed of 2 distinct business groups - ie Citicorp and Citi Holdings. Citicorp consists of Regional Consumer Banking
and Institutional Clients Goup; Citi Holdings is made of Brokerage and Asset Management, Local Consumer Finance and
Special Asset Pool.
117
Global Transaction Services is a key component of the Institutional Clients Group. Global Transaction Services provides cash
management, treasury, trade finance, custody, clearing, depository receipt, agency trust services, and fund services to financial
institutions, corporations, and governments that have assets and business in multiple countries and require integrated reporting
and management.
Securities and Fund Services are a core constituent of Global Transaction Services. Citi provides cross-border transaction
services for the world's investors, intermediaries and issuers with USD 11.6 trillion in assets under custody and trust. According
to industry surveys, Citi consistently ranks as the premier choice for custody, clearing, securities finance, global agency and
trust, and depositary receipt services in more markets than any other bank. Central Banks, investment managers, brokerdealers and global custodians rely on Citi for authoritative market intelligence, state-of-the-art processing capabilities, and
responsive client service.
Securities and Fund Services presently services more than 2,500 client groups worldwide and with more than USD 11.6 trillion
assets under custody and custody network spanning 86 markets, out of which 47 are Citi branches or subsidiaries, our
securities capabilities are unrivalled.
The delegate, Citibank Berhad, is responsible for:-
§
Maintaining the accounting records of TASEA; and
§
Valuation of the TASEA's portfolio and the unit price.
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12. THE EXTERNAL INVESTMENT MANAGERS
12.1
LION GLOBAL INVESTORS LIMITED
Lion Global Investors, one of the largest asset management companies in South East Asia, is 70%-owned by Great Eastern
Holdings Limited and 30%-owned by Orient Holdings Private Limited, a wholly-owned subsidiary of OCBC Bank.
Lion Global Investors has a total staff strength of about 146 with about 50 experienced investment professionals including
portfolio managers, analysts and traders managing assets of about S$29 billion as at 30 September 2010. Offering a
comprehensive suite of investment products covering all asset classes, the Lion Global Investors’ clients include government
and government-linked corporations, public and private companies, charitable organisations and individual investors.
Lion Global Investors has an experienced team of investment professionals dedicated to focus on regional and global equities
and fixed income markets. The average years of experience of each member of the investment team spans more than 10
years. Lion Global Investors’ investment capabilities are greatly enhanced by its specialised teams of experienced analysts and
investment managers. Lion Global Investors’ approach to investment is team-based and research-intensive, combining in-depth
market insights with comprehensive sector knowledge.
12.2
MAIN FUNCTIONS OF LION GLOBAL INVESTORS LIMITED
TAIM has entered into an investment management agreement with Lion Global Investors Limited (formerly known as Lion
Capital Management Limited), a company incorporated in Singapore on 22 August 1986 and licensed by the Monetary
Authority of Singapore as a holder of Capital Markets Services License for Fund Management.
Lion Global Investors is responsible for managing in accordance with the investment objective of the Fund. Lion Global
Investors has discretionary authority over the investment of the Fund subject to the Securities Commission Guidelines on Unit
Trust Funds, the relevant securities laws, the internal procedures as well as the investment objective of the Fund and the
direction of the Investment Committee of the Fund. Lion Global Investors reports to the Investment Committee of the Fund on a
regular basis on the status of the Fund’s portfolio, proposed investment strategy and to discuss matters relating to the portfolio.
12.3
KEY PERSONNEL OF LION GLOBAL INVESTORS LIMITED
Daniel Chan, Chief Executive Officer
Daniel is the CEO of Lion Global Investors. A veteran in the Singapore fund management industry, he has made significant
contributions to the development of Singapore’s fund management industry. Prior to joining Lion Global Investors, Daniel was
the Managing Director and Chief Investment Officer of UOB Asset Management Ltd.
Daniel was Chairman of the Investment Management Association of Singapore from 2000 to 2004. With more than 30 years of
investment experience spanning across traditional asset classes in equities and bonds, he has been one of Singapore’s
pioneers in spearheading the move into alternative asset classes such as hedge funds and structured credits.
Daniel has been instrumental in the establishment of Lion Global Investors through the merger of the asset management
businesses of two Asian financial stalwarts, Great Eastern Holdings and Oversea-Chinese Banking Corporation Limited. Under
his leadership, Lion Global Investors has cemented its position as an Asian fund specialist.
Daniel sits on the investment committees of various non-profit organisations, including the People’s Association and Nanyang
Technological University Endowment Fund.
He earned a Bachelor of Business Administration from the National University of Singapore.
Simon Flood, Chief Investment Officer
Simon is Lion Global Investors’ Chief Investment Officer, Chairman of its Investment Committee and responsible for the overall
direction and supervision of Lion Global Investors’ investment department.
Prior to his role with Lion Global Investors, Simon held a number of senior investment roles in the asset management industry,
covering both the listed, developed and emerging, as well as private, equity markets.
Originally from New Zealand, Simon spent 15 years in the industry in London, followed by 5 years in Hong Kong before arriving
in Singapore in 2009. His experience encompasses all aspects of the asset management industry but has focused
predominantly on the active management of portfolios for a wide range of clients both retail and institutional. In addition to his
fund management and investment team leadership roles, Simon has also held a number of senior regional business leadership
positions including leading the Asia Pacific Ex Japan business for Merrill Lynch Investment Managers.
119
Simon holds a Bachelor of Commerce from the University of Canterbury and is a member of the Chartered Financial Analysts
Society.
Kelvin Wong, Portfolio Manager and designated person responsible for the management of the TA South East Asia Equity
Fund
Kelvin is the Malaysia and Philippines country specialist. Prior to joining Lion Global Investors in 2008, he was a Portfolio
Manager covering various Asian equity markets at DBS Asset Management. He was an Investment Analyst at Arisaig Partners
(Asia) and Kim Eng Ong Asia Securities and a Credit Analyst at Banca Nazionale Del Lavoro S.P.A and at OCBC.
Kelvin earned a Bachelor of Economics from the University of Western Australia and a Master of Commerce from the University
of New South Wales
Janet Liem, Head of Asia Pacific Equities
Janet heads the Asia Pacific Equities team. She plays an influential role in strengthening the firm’s Asia Pacific equity
capabilities. Having been in the investment industry since 1987, she leads the team in formulating the investment philosophy
and process for equities in Asia Pacific. She sits on the asset allocation committee and is a member of the senior investment
team. She is also Lion Global Investors’ China and Hong Kong country specialist.
She has been on the board of Singapore Consortium Investment Management Ltd (“SICIM”) since 2005 and is currently the
Chairman of the board of SICIM.
Prior to joining Lion Global Investors in 2005, Janet spent 12 years with UOB Asset Management Ltd where she held key roles
including Head of Research, Deputy Chief Investment Officer and lead portfolio manager for Asia Pacific equity mandates.
Janet was previously with Bank of America Singapore as Head, Economic Research and Planning. She was also with the
Economic Development Board of Singapore.
Janet earned a Bachelor of Social Science in Economics and Statistics from the National University of Singapore and an MBA
from the Australian Graduate School of Management, University of New South Wales.
Kon Chee Keat, Head of Fixed Income & Structured Credits
Chee Keat heads the Fixed Income and Structured Credits team at Lion Global Investors. He is also a senior member of Lion
Global Investors’ portfolio management and investment strategy group. Prior to joining Lion Global Investors, he was the Head
of Global Fixed Income and Foreign Exchange at UOB Asset Management Ltd.
Chee Keat has more than 20 years of fund management experience covering interest rates, currencies, global corporate
credits, convertible bonds, derivatives and complex structured products. In the course of his investment management career,
he has been involved in managing global and regional bond portfolios, private debt, insurance funds and complex structured
products including cash-flow and synthetic CDOs. Under his stewardship, the LionGlobal Singapore Fixed Income Investment
fund has won numerous awards.
Chee Keat’s prior experiences include managing international equity proprietary funds for United Overseas Bank Limited
(“UOB”) as well as derivative trading at a Hong Kong investment firm. Chee Keat holds a Master of Business Administration
from the University of Central Arkansas.
Gina Chan, Head of Absolute Return Strategies/External Fund Management
Gina is the Head of Absolute Return Strategies and External Fund Management (“EFM”) at Lion Global Investors Limited (“Lion
Global Investors”). She has more than 20 years of experience in the fund management industry. She specializes in managing
absolute return products, and is the lead portfolio manager for global absolute return mandates – a flagship product of Lion
Global Investors. Gina also leads the EFM team investing in core asset classes and hedge funds.
Prior to this, Gina was head of the investment team at Keppel Investment Management Ltd, investing in Asian and developed
market equities and bonds. She started her career with DBS Bank Ltd where she managed Asian equity portfolios and venture
capital investments.
Gina graduated from the National University of Singapore with a Bachelor of Business Administration and holds the Chartered
Financial Analyst designation.
Frank Lim, Head of US / European Equities
Frank was an Associate Director with Exane SA from 2001 till April 2006, specializing in European equities sales. Prior to this,
he was a Senior Portfolio Manager with UOB Asset Management Ltd (“UOBAM”) from 1995 to 2000. He was the global
financial sector specialist in UOBAM and headed the European equities team. He started his career in 1992, working as a
project manager for Ministry of Information & the Arts (“MITA”) and Esso Singapore Private Limited.
He graduated from the National University of Singapore in 1992 with a Bachelor of Engineering (Class I Honours). He also
holds a Master of Applied Finance degree from Macquarie University and obtained the Chartered Financial Analyst (CFA)
charter in 1998.
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12.4
OPUS ASSET MANAGEMENT SDN BHD
OpusAM was incorporated on 24 December 1996 as Lotus Asset Management Sdn. Bhd. On 8 February 2002, its name was
changed to Merican & Partners Asset Management Sdn Bhd, before it assumed its present name on 7 March 2005.
As at 30 September 2010, the total assets under management of OpusAM stand at approximately RM 1.54 billion. The
designated person responsible for the management of the sukuk portfolio is Mr. Siaw Wei Tang (Managing Director/Chief
Investment Officer).
With staff strength of 16 as at 30 September 2010, OpusAM is one of the few independent fund management companies in
Malaysia, and probably the only company that is dedicated and specialised in fixed income investment. The investment team
has experience in regional and local investments for pension funds, statutory bodies, state governments, insurance companies,
unit trusts, corporations and private individuals. In Malaysia, OpusAM has a wide market network and strives to achieve strong
market presence in the fixed income market.
12.5
MAIN FUNCTIONS OF OPUS ASSET MANAGEMENT SDN BHD
TAIM has entered into an investment management agreement with OpusAM, licensed by Securities Commission (“SC”) of
Malaysia permitting to provide fund management services and futures fund management services pursuant to Capital Markets
and Services Act 2007.
OpusAM is responsible for managing in accordance with the investment objective of the Fund. Opus AM has discretionary
authority over the investment of the Fund subject to the Securities Commission Guidelins on the Unit Trust Funds, the relevant
securities laws, the internal procedures as well as the investment objectives of the Fund and the direction of the Investment
Committee of the Fund. OpusAM reports to the Investment Committee of the Fund on a regular basis on the status of the
Fund’s portfolio, proposed investment strategy and to discuss matters relating to the portfolio.
12.6
KEY PERSONNEL OF OPUS ASSET MANAGEMENT SDN BHD
Siaw Wei Tang, Managing Director/Chief Investment Officer
Mr. Siaw started his career as a Risk Manager and Actuarial Consultant at NMG Risk Managers & Actuaties Sdn Bhd. He then
joined Gadek Asset Management (later renamed Phileo Asset Management) in 1996 as Portfolio Manager in charge of fixed
income and he grew the fixed income portfolio under management to RM430 million in four years. He then joined HLG Asset
Management in 2000 where he was responsible for over RM 1billion of funds under management and a team of seven
investment professionals. He was also approved by the Securities Commission as Designated Fund Manager for all of HLG’s
unit trust funds. He was later promoted to General Manager, Investment/Chief Investment Officer of Hong Leong Assurance
Bhd in 2002 where he was responsible for approximately RM3 billion (of which approximately RM2 billion in fixed income type
securities) of HLA’s investment portfolio and an investment management team of four professionals.
He holds a M.Sc degree in International Banking & Financial Studies, University of Southampton, and B.Sc (Honours) degree in
Actuarial Mathematics & Statistics from Heriot Watt University, both in United Kingdom. He holds a Capital Market Services
Representative’s license.
121
13. THE TRUSTEES
13.1
DUTIES AND RESPONSIBILITIES
The Trustees’ role is to act as custodians of the Fund(s) under them and to exercise all due care and diligence in carrying out
their functions and duties and to safeguard the rights and interests of all Unit Holders by ensuring that the Manager performs its
duties and obligations in accordance with the Deed, the Guidelines and all relevant laws.
The Trustees appointed for the Funds are as below:
BHLB Trustee Berhad
for TAGF, TACF, TASF, TADO, TACP ,TAICP, TASEA ,TAIB and
TABRIC
Universal Trustee (Malaysia) Berhad
for TAIF, TIF, TAHGF and TADF
HSBC (Malaysia) Trustee Berhad
for TAGAAF, TAEURO, and TAACCI
Mayban Trustees Berhad
for TAUF
13.2
BHLB TRUSTEE BERHAD
BHLB Trustee Berhad ( BTB) is the trustee of TA Growth Fund, TA Comet Fund, TA Small Cap Fund, TA Dana OptiMix, TA
CashPLUS Fund, TA Islamic CashPLUS Fund, TA South East Asia Equity Fund,TA Asia Pacific Islamic Balanced Fund and TA
BRIC & Emerging Markets Fund. Incorporated in August 1994, BTB commenced operations on 1 September 1995. BTB has 68
unit trust funds and 1 REIT under its trusteeship as at 30 September 2010. BTB has about 14 years of experience in the unit
trust industry.
BTB’s Financial Position (Audited)
Financial Year Ended 31 December
2007
Paid Up Capital
Shareholders’ Funds
2008
2009
RM
RM
RM
1,750,000
1,750,000
1,750,000
2,887,262
5,106,239
5,696,309
6,052,910 (Restated)
6,558,782
7,037,826
Pre-tax Profit / (Loss)
1,571,682
3,238,547
3,339,506
After tax Profit / (Loss)
1,156,620
2,218,977
2,465,070
Turnover
Board of Directors
•
Tan Sri Dato’ Seri Haidar Bin Mohamed Nor
•
Mr. Kok Kong Chin
•
Mr. Loh Shai Weng
•
Ms. Yap Huey Hoong (Alternate to Loh Shai Weng)
Profile of Key Personnel
As at 30 September 2010, BTB has staff strength of twenty-one (21), comprising nineteen (19) executives and two (2) non
executives. Its senior members of management comprise the following:Ms. Yap Huey Hoong, Chief Executive Officer
She is a UK qualified barrister-at-law (Lincoln’s Inn) and a Trust and Estate Practitioner (TEP). She also holds a UK Investment
Management Certificate. She started her career in London as a fund manager and was later transferred to Jersey, Channel
Islands, and thereafter Singapore and was responsible for the company’s corporate and private trust business development.
She later joined a global financial institution as a Senior Trust Consultant based in Hong Kong, specialising in trust services for
Asian clients. Prior to joining BTB, she was the founder and Chief Executive Officer of a domestic trust company in Malaysia.
She has worked in the trust industry for over ten years.
Ms. Jeslin Ng Lai Peng, Senior Manager
She holds a Bachelor of Arts (Honours) Degree in Business Administration from University of Bolton and has an LCCI
qualification with more than ten years of experience in accounting and trust operations.
Ms. Law Oi Meng, Manager
She holds a Bachelor Degree in Information Technology from the University of Southern Queensland and has more than ten
years of experience in developing and implementing IT systems and trust operations.
122
Ms. Soo Poi Yoke, Senior Manager
She holds an LL.B (Hons) from the University of Glamorgan and has cumulative legal experience of more than ten years. In her
current position, she manages BTB’s in house legal function, renders legal advisory support to business units and the
management team of BTB.
Ms. Azida Binti Abdul Aziz, Assistant Manager
She holds a Diploma in Accountancy from Universiti Teknologi Mara. She had more than six years of experience in trust
operations.
Duties and Responsibilities of the Trustee
The Trustees have agreed willingly to assume all their obligations under the respective Deeds and all written laws and
Guidelines which cover the following:
§
§
§
§
§
§
Take into custody the investments of the respective Funds and hold the investments in trust for the Unit Holders.
Ensure that the Manager operates and administers the Funds in accordance with the provisions of the respective Deeds,
Guidelines and acceptable business practice within the unit trust industry.
As soon as practicable notify the Securities Commission of any irregularity or breach of the provisions of the Deeds,
Guidelines and any other matters which in the Trustees' opinions may indicate that the interests of Unit Holders are
not
served.
Exercise reasonable diligence in carrying out their functions and duties, in actively monitoring the operation and
management of the Funds by the Manager to safeguard the interests of Unit Holders.
Maintain, or cause the Manager to maintain, proper accounting records and other records as are necessary to enable a
complete and accurate view of the Funds to be formed and to ensure that the Funds are operated and managed in
accordance with the deeds of the respective Funds, Prospectus, the Guidelines and securities law.
Require that the accounts be audited at least annually.
Trustees’ Statement of Responsibilty
BTB is willing to continue its position as trustee of TAGF, TACF, TASF, TADO, TACP, TAICP, TASEA, TAIB and TABRIC and
all the obligations that come along with it under the Deed and all relevant written laws.
Trustee’s Disclosure of Material Litigation
As at 30 September 2010, there is no material litigation and arbitration, including those pending or threatened, and any fact
likely to give rise to any proceeding which might materially affect the business or financial position of BTB.
BHLB Trustee Berhad’s Delegate
BHLB Trustee Berhad has appointed CIMB Group Nominees (Tempatan) Sdn Bhd as the custodian of the assets of TAGF,
TACF, TADO, TASF, TACP, TAICP, TAIB TASEA and TABRIC. CIMB Group Nominees (Tempatan) Sdn Bhd is a wholly
owned subsidiary of CIMB Bank Berhad. Its custodial function includes safekeeping, settlement and corporate action related
processing and cash and security reporting.
CIMB Group Nominees (Tempatan) Sdn Bhd appoints Citibank N.A., Singapore Branch as their sub-delegate for global
custodial function. The scope and responsibilities are similar to the Trustee’s delegate.
All investments are automatically registered in the name of the Fund. The custodian acts only in accordance with instructions
from the Trustee.
13.3
UNIVERSAL TRUSTEE (MALAYSIA) BERHAD
The Trustee for TAIF, TIF, TAHGF and TADF is Universal Trustee (Malaysia) Berhad (“UTMB”). UTMB was incorporated on 5
March 1974 under the Companies Act, 1965. It has an authorised capital of RM5,000,000 divided into 500,000 ordinary shares
of RM10 each of which 100,000 ordinary shares of RM10 each, are issued and RM5 called and paid-up. UTMB has more than
10 years of experience in handling unit trust matters. Currently, UTMB has 35 unit trust funds under its trusteeship as at 30
September 2010.
UTMB’s Financial Position (Audited)
Financial Year Ended 31 December
2007
2008
2009
RM
RM
RM
Paid-up Share Capital
500,000
500,000
500,000
Shareholders’ Funds
5,529,284
5,786,875
6,025,529
Turnover
4,082,925
4,166,722
3,591,350
Pre-tax Profit / (Loss)
993,028
1,256,263
1,037,164
After tax Profit / (Loss)
786,735
1,007,591
801,154
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Board of Directors
•
Y.A.M. Tunku Dato’ Seri Nadzaruddin Ibni Almarhum Tuanku Ja’afar
•
En. Azrin Mirzhan Bin Kamaluddin (alternate director to Y.A.M. Tunku Dato’ Seri Nadzaruddin Ibni Almarhum Tuanku
Ja’afar)
•
Tan Sri Dato’ IR. Talha Bin Haji Mohamad Hashim
•
Mr Huang Chang Yi
•
Emily Huang Ye ( alternate to Mr Huang Chang Yi)
•
Mr Wong Sai Fong
•
Putri Noor Shariza Binti Noordin Omar (alternate to Mr Wong Sai Fong)
Profile of Key Personnel
As at 30 September 2010, UTMB has staff strength of 32 comprising 18 executives and 14 non-executives. Its senior members
of management comprise the following:Mr Liew Kok Wah, 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, Senior Manager
She 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, Manager
She 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 resources of UTMB.
Mr Kumar P., 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 also 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.
Duties and Responsibilities of the Trustee
The Trustee acts as the custodian of the Fund and its role is to safeguard the assets of the Fund. The Trustee is governed by
the Trust Deed, Capital Markets and Services Act 2007 and the Securities Commission’s Guidelines. In performing these
functions, the Trustee has to exercise due care, skill, diligence and vigilance in carrying out its duties and responsibilities, and
also ensures that the Manager carries out its duties in accordance to the provisions of the Trust Deed, Capital Markets and
Services Act 2007 and the Securities Commission’s Guidelines.
Trustees’ Statement of Responsibility
UTMB is willing to continue its position as trustee of TAIF, TIF, TAHGF, and TADF and all the obligations that come along with
it under the Deed and all relevant written laws.
Trustee’s Disclosure of Material Litigation
As at the date of 30 September 2010 there is no material litigation and arbitration, including those pending or threatened, and
any fact likely to give rise to any proceeding which might materially affect the business or financial position of UTMB.
124
Trustee’s Delegate and Delegates’ Roles and Duties
Universal Trustee (Malaysia) Berhad has appointed United Overseas Bank (Malaysia) Bhd as the custodian for the foreign
portfolio investment of TAIF, TIF and TAHGF. The custodian has been providing custody services to domestic and foreign,
retail and institutional investors since 1984. The custody services provided by the custodian includes clearing and settlement,
safekeeping, corporate events monitoring and processing, income collection, reporting on securities and cash transactions and
positions. All investments are registered in the name of the custodian or its nominee for the account of the Fund. The custodian
acts only in accordance with instruction from its principal, Universal Trustee (Malaysia) Berhad
13.4
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 at Suite 901, 9th 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 RM17.52million
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:
Financial Year Ended 31 December
2007
2008
2009
RM
RM
RM
Paid-up Share Capital
500,000
500,000
500,000
Shareholders’ Funds
6,598,539
14,353,116
17,521,023
Turnover
16,911,088
17,843,570
18,006,590
Pre-tax Profit / (Loss)
9,164,852
10,470,535
10,930,880
After tax Profit / (Loss)
6,442,083
7,754,577
8,200,407
Experience in Trustee Business
Since 1993, the Trustee has acquired experience in the administration of unit trusts and as at 30 September 2010 is the
Trustee for 192 unit trust funds (including Exchange Traded Funds and Wholesale Funds).
As at 30 September 2010, the Trustee has a workforce of 50 employees consisting of 39 executives and 11 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.
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)
125
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 BankBank 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, Sub-Custody and Clearing, in Malaysia.
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.
126
Duties and Responsibilities of the Trustee
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.
Trustee’s Statement of Responsibility
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.
Trustee’s Disclosure of Material Litigation
As at 30 September 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.
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 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 the acts, omissions or failure of any third party depository including 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
Fax No: (852)28696120
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.
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.
127
13.5
MAYBAN TRUSTEES BERHAD
Mayban Trustees Berhad (5004-P) (MTB) is the trustee of the TAUF with its business address at 34th Floor, Menara Maybank,
100 Jalan Tun Perak, 50050 Kuala Lumpur.
MTB was incorporated on 12 April 1963 and registered as a trust company under the Trust Companies Act 1949 on 11
November 1963. It was one of the first local trust companies to provide trustee services with the objective of meeting the
financial needs of both individual and corporate clients.
As at 30 September 2010, MTB has staff strength of thirty-three (33) employees, comprising twenty-four (24) executives and
nine (9) non-executives.
Experience in Trustee Business
With more than 18 years experience as Trustee to unit trust funds, MTB has under its trusteeship a total of fifty-four (54) unit
trust funds and three (3) real estate investment trusts as at 30 September 2010.
MTB’s Financial Information
Summary of MTB’s audited financial figures for financial years ended 30 June:
Financial Year Ended 30 June
2010
2009
2008
RM
RM
RM
Paid-up Share Capital
500,000
500,000
500,000
Shareholders’ Funds
3,901,376
8,623,251
22,112,805
Turnover
9,114,792
8,975,102
9,760,237
Pre-tax Profit / (Loss)
3,052,910
7,645,425
7,958,333
After tax Profit / (Loss)
2,278,125
5,730,466
5,916,114
Board of Directors
•
En Zainal Abidin Jamal (Non Independent Director and Chairman)
•
Dato’ Dr Tan Tat Wai (Independent Director)
Profile of Key Personnel
En Badirul Ismail, Chief Executive Officer
En Badirul joined Maybank in 2003 where he served Mayban Investment as a Manager and was subsequently promoted to
Head, Business Development. In 2007, he was appointed as Head, Private Wealth Management; a department in consumer
banking that manages the portfolios of ultra high net worth individuals. En Badirul commands more that 10 years of financial,
asset management and wealth management experience. Prior to joining the Bank, he was attached to a unit trust management
company and two asset management companies. He holds a Bachelor of Business Administration from University Utara
Malaysia and in 2001; he obtained his Capital Markets Services Representative’s license from the Securities Commission.
Ms Jennifer Wong, Head of Operations
Ms Jennifer Wong joined MTB in December 2008. Jennifer has 30 years practical experience in the trustee industry. She
handled administration of estates, private trusts, retirement funds, unit trusts, custodian / escrow /stakeholder accounts and
private debt securities. Jennifer holds a LCCI Intermediate in Book keeping.
Mr. Stefan Ong , Head of Business Development - Corporate
Mr Stefan Ong joined MTB in April 2009. He has more than 10 years of experience in the Financial Services Industry covering
Life Insurance, Unit Trust, Consumer Banking, Retail & Private Banking and Trustee Services. He holds a Bachelor of Business
Studies (Honours) degree from the University of Sheffield, UK.
Mr Jeffrey Ching, Head of –Unit Trust
Mr. Jeffrey Ching joined MTB in June 2010. He has more than 11 years of experience with a leading local unit trust
management company; having covered documentation, compliance and fund accounting while overseeing its backroom
operations during his tenure. Prior to his joining MTB, he was attached to a leading international fund administration and
custodial services company, providing fund accounting services support for various mutual funds in Europe.
Ms Quek Yen Leng, Head of Business Support
Ms. Quek joined MTB on 16 April 2001. Prior to this, she was in an accounting firm before joining an established commercial
bank. As Head of Buinesss Support, she is in charge of MTB’s and clients’ accounts. Ms Quek is a member of the Australian
Society of Certified Practicing Accountants and Malaysian Institute of Accountants. She holds an Accounting degree from RMIT,
Melbourne, Australia.
128
Encik Hairul Anuar Sarip, Head of Compliance & Risk Management Unit
Encik Hairul joined MTB on 01 April 2008. He graduated from UKM with Bachelor of Accounting (Hons). He is a Chartered
Member of Institute of Internal Auditors Malaysia (2003) and also a Chartered Accountant of Malaysian Institute of Accountants
(2003). Prior to joining Mayban Trustees Berhad, he has 8 years of experience as an internal auditor and compliance with
various government-linked-companies.
Mr Dinesh Devagar Chandrasegaran, Head of Legal
Mr. Dinesh joined Mayban Trustees Berhad as Head of Legal on the 24th March 2008. He graduated from University of Malaya
with a LLB (Honours) Degree in 1994. Upon being called to the Malaysian Bar in 1995, he was as an advocate and solicitors
handling commercial banking and corporate matters for 13 years.
Duties and Responsibilities of the Trustee
The Trustee’s role is mainly to act as custodian of the Fund and to exercise all due diligence and vigilance in carrying out its
functions and duties and to safeguard the rights and interests of the Unit Holders. Apart from being the legal owner of the
Fund’s assets, the Trustee is responsible for ensuring that the Manager performs its obligations in accordance with the
provisions of the Deed and the relevant laws.
Trustee’s Statement of Responsibility
The Trustee has given their willingness to assume the positions and all the obligations that come along with them under the
respective Deeds of the Funds and all relevant written laws. The Trustee is entitled to be indemnified out of the assets of the
Funds for any liability incurred by the Trustee in performing or exercising any of its powers or duties in relation to the Fund. This
indemnity is in addition to any indemnity allowed by law. However, it does not extend to liabilities arising from a breach of trust
or failure to show the due care and diligence required of the Trustee having regard to its powers, authorities and discretions
under the Deed.
Material Litigation and Arbitration
As at 30 September 2010, save for the suits mentioned herein below, the Trustee is not engaged in any material litigation 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 and adversely affect its financial position or business.
The Bondholders of the Al-Bai Bithaman Ajil [ABBA] Bonds issued by Pesaka Astana (M) Sdn Bhd [PASB] have sued PASB for
its failure to meet its bonds payment obligations under Kuala Lumpur High Court Civil Suit No. D5(D6)-22-1810-2005 [the 1st
Suit] and cited the Trustee as one of 12 co-defendants in the 1st Suit. The claim in the 1st Suit is for RM149,315,000.00 or any
other sum that the Court deems fit. The other defendants in the 1st Suit include among others the Facility Agent, PASB’s Chief
Executive Officer, one of PASB’s directors and associate companies of the Chief Executive Officer and the said director. The
Trustee has defended the 1st Suit and its trial has concluded.
The Trustee has appealed against the decision made by the High Court on 30 June 2010 in respect of the 1st Suit in awarding
judgement against it and another Defendant.
Connected to the above, Amanah Short Deposits Berhad, a Noteholder of the Combined Commercial Papers and/or Medium
Term Notes/Letters of Credit/Financial Guarantee Facilities [CP/MTN] totaling RM13 million and issued by PASB, have also
sued PASB for full payment under CP/MTN arising from a cross-default by PASB under its ABBA Bonds, under Kuala Lumpur
High Court Civil Suit No. D2-22-1085-2006 [the 2nd Suit]. The Trustee was cited as one of 5 co-defendants in the 2nd Suit.
The claim in the 2nd Suit is for RM13 million or any other sum that the Court deems fit and damages. The other defendants in
the 2nd Suit are the Facility Agent, PASB’s Chief Executive Officer and one of PASB’s directors. The Trustee is defending the
2nd Suit. Trial for the 2nd Suit is fixed on 25 and 26 November 2010.
In any event, any successful claim that may be established against the Trustee will be covered by the Trustee’s insurer and/or
Malayan Banking Berhad as the ultimate holding company of the Trustee. As such, the 1st Suit and the 2nd Suit will not
materially affect the business or financial position of the Trustee.
Further, the Trustee has in place a strong team of professionals with priority chiefly on protecting the interest of all stakeholders
and upholding best standards of service and management practice
Trustee’s Delegate
MTB has delegated its custodian function to Malayan Banking Berhad. The custodian function is run under Maybank Custody
Services (“MCS”), a unit within Malayan Banking Berhad. MCS commenced operations in 1983 and has been appointed as
custodian of 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. The custodian act only in accordance with instructions from the Trustee.
129
14. SALIENT TERMS OF THE DEEDS
14.1
RIGHTS AND LIABILITIES AS A UNIT HOLDER
For TAGF, TACF, TAICP, TADO, TASF, TACP, TASEA, TAIB, TAUF, TAHGF, TAIF, TIF, TAEURO, TAGAAF, TADF
,TAACCI and TABRIC
Rights of Unit Holders
As a Unit Holder of the Fund, and subject to the provisions of the Deed, you have the right:
1)
to receive distributions, if any, of the Fund;
2)
to participate in any increase in the NAV of Units of the Fund;
3)
to call for Unit Holders’ Meetings and to vote for the removal of the Trustee or the Manager through a special
resolution;
4)
to exercise the cooling-off right (only for qualified investors);
5)
to receive annual and interim reports on the Fund; and
6)
to exercise such other rights and privileges as provided for in the Deed.
However, a Unit Holder would not have the right to require the transfer to the Unit Holder of any of the investments of the Fund.
Neither would a Unit Holder have the right to interfere with or to question the exercise by the Trustee (or the Manager on the
Trustee’s behalf) of the rights of the Trustee as trustee of the investments of the Fund.
Liabilities of Unit Holders
As a Unit Holder of the Fund, and subject to the provisions of the Deed, your liabilities would be limited to the following:
1)
A Unit Holder would not be liable for nor would a Unit Holder be required to pay any amount in addition to the
payment for Units of the Fund as set out in this Prospectus and the Deed.
2)
A Unit Holder would not be liable to indemnify the Trustee and/or the Manager in the event that the liabilities incurred
by the Trustee and/or the Manager on behalf of the Fund exceed the NAV of the Fund.
Note:
Please be advised that if a Unit Holder invests in Units through an IUTA which adopts the nominee system of
ownership, the Unit Holder would not be considered to be a Unit Holder under the Deed and the Unit Holder may
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 the Unit Holder’s particulars appearing in the register of
Unit Holders of the Fund).
14.2
MAXIMUM FEES AND CHARGES PERMITTED
The maximum rate of direct fees and charges allowable by the Deeds are as follows:-.
Funds Name
TAGF
TACF
TAIF
TIF
TASF
TAHGF
TADO
TACP
TAICP
TASEA
TAGAAF
TAIB
TAEURO
TAUF
TADF
TAACCI
TABRIC
Maximum Rate of Sales Charge
10% of the NAV per Unit
10% of the NAV per Unit
10% of the NAV per Unit
10% of the NAV per Unit
10% of the NAV per Unit
8% of the NAV per Unit
8% of the NAV per Unit
5% of the NAV per Unit
5% of the NAV per Unit
10% of the NAV per Unit
10% of the NAV per Unit
7% of the NAV per Unit
7% of the NAV per Unit
7% of the NAV per Unit
7% of the NAV per Unit
5% of the NAV per Unit
6% of the NAV per Unit
130
Maximum Rate of Repurchase Charge
5 Sen of the NAV per Unit
5 Sen of the NAV per Unit
5 Sen of the NAV per Unit
5 Sen of the NAV per Unit
5 % of the NAV per Unit
5 Sen of the NAV per Unit
5 Sen of the NAV per Unit
5 Sen of the NAV per Unit
5 Sen of the NAV per Unit
5% of the NAV per Unit
5% of the NAV per Unit
5% of the NAV per Unit
5% of the NAV per Unit
5% of the NAV per Unit
5% of the NAV per Unit
1% of the NAV per Unit
1% of the NAV per Unit
The maximum rate of indirect fees and charges allowable by the Deeds are as follows:Funds
Name
TAGF
Maximum Rate of Annual Management Fee
TACF
1.5% per annum of the NAV of the Fund
0.10%per annum of the NAV of the Fund subject to a minimum of
RM35,000 per annum calculated and accrued daily.
TAIF
1.5% per annum of the NAV of the Fund
0.08%per annum of the NAV of the Fund calculated and accrued
daily.
TIF
1.5% per annum of the NAV of the Fund
0.08%per annum of the NAV of the Fund calculated and accrued
daily.
TASF
1.5% per annum of the NAV of the Fund
0.07%per annum of the NAV of the Fund subject to a minimum of
RM18,000 per annum calculated and accrued daily.
TAHGF
1.5% per annum of the NAV of the Fund
0.07%per annum of the NAV of the Fund calculated and accrued
daily.
TADO
1.5% per annum of the NAV of the Fund
0.07%per annum of the NAV of the Fund subject to a minimum of
RM18,000 per annum calculated and accrued daily.
TACP
0.75% per annum of the NAV of the Fund
0.07%per annum of the NAV of the Fund subject to a minimum of
RM18,000 per annum calculated and accrued daily.
TAICP
0.75% per annum of the NAV of the Fund
0.07%per annum of the NAV of the Fund subject to a minimum of
RM18,000 per annum calculated and accrued daily.
TASEA
2.0% of the NAV of the Fund before the
deduction of the management fee and trustee
fee for the relevant day.
0.2% of the NAV of the Fund before the deduction of the
management fee and trustee fee for the relevant day subject to a
minimum of RM18,000 per annum.
TAGAAF
2.0% of the NAV of the Fund before the
deduction of the management fee and trustee
fee for the relevant day.
0.2% of the NAV of the Fund before the deduction of the
management fee and trustee fee for the relevant day subject to a
minimum of RM18,000 per annum.
TAIB
2.0% of the NAV of the Fund
0.2% per annum of the NAV of the Fund subject to a minimum of
RM18,000 per annum calculated and accrued daily.
TAEURO
2.0% of the NAV of the Fund before the
deduction of the management fee and trustee
fee for the relevant day.
0.2% of the NAV of the Fund before the deduction of the
management fee and trustee fee for the relevant day subject to a
minimum of RM18,000 per annum calculated and accrued daily.
TAUF
2.0% of the NAV of the Fund before the
deduction of the management fee and trustee
fee for the relevant day.
0.2% of the NAV of the Fund before the deduction of the
management fee and trustee fee for the relevant day subject to a
minimum of RM18,000 per annum.
TADF
2.0% of the NAV of the Fund before the
deduction of the management fee and trustee
fee for the relevant day.
0.2% of the NAV of the Fund before the deduction of the
management fee and trustee fee for the relevant day subject to a
minimum of RM18,000 per annum.
TAACCI
2.0% of the NAV of the Fund calculated and
accrued daily.
0.2% of the NAV of the Fund subject to a minimum of RM18,000
per annum calculated and accrued daily.
TABRIC
2.0% of the NAV of the Fund calculated and
accrued daily.
0.2% of the NAV of the Fund subject to a minimum of RM18,000
per annum calculated and accrued daily.
1.5% per annum of the NAV of the Fund
Maximum Rate of Annual Trustee Fee (excluding foreign
custodian fee and charges)
0.06%per annum (first RM20million), 0.05% per annum (next
RM20million), 0.04% per annum (next RM20million), 0.03% per
annum (next RM20million), 0.02% per annum (next RM20million)
and 0.01% per annum (any amount in excess of RM100million)
of the NAV of the Fund subject to registration and custodian fees
of RM18,000 per annum respectively.
Increase in Fees and Charges from the maximum rate provided in the Deed
The maximum Sales Charge, Repurchase Charge, Annual Management Fee or Annual Trustee Fee set out in the Deed can
only be increased if a Unit Holders' Meeting has been held in accordance with the Deed. Thereafter, a supplemental deed
proposing a modification to the Deed to increase the aforesaid maximum charges and fees is required to be submitted for
registration with the SC accompanied by a resolution of not less than two-thirds (2/3) of all Unit Holders present and voting at
the Unit Holders' Meeting sanctioning the proposed modification to the Deed.
131
14.3
PROCEDURES TO INCREASE THE DIRECT AND INDIRECT FEES AND CHARGES
Sales Charge
The Manager may not charge a Sales Charge at a rate higher than that disclosed in a prospectus unless:
(a)
the Manager has notified the Trustee in writing of the higher sales charge and its effective date;
(b)
a new or supplemental prospectus stating the higher sales charge is issued thereafter; and
(c)
30 days have elapsed since the supplemental prospectus was issued.
Repurchase Fee
The Manager may not charge a Repurchase Fee at a rate higher than that disclosed in a prospectus unless:
(a)
the Manager has notified the Trustee of the higher repurchase charge and its effective date;
(b)
a new or supplemental prospectus stating the higher repurchase charge is issued thereafter; and
(c)
30 days have elapsed since the supplemental prospectus was issued.
Annual Management Fee
The Manager does not intend to impose an Annual Management Fee however should at a rate higher than that disclosed in a
prospectus unless:
(a)
the Manager and the Trustee has mutually agreed to the higher rate to be charged;
(b)
the Manager has notified the Unit Holders of the new higher rate and its effective date;
(c)
a new or supplemental prospectus incorporating the new higher rate is issued thereafter; and
(d)
90 days have elapsed since the supplemental prospectus was issued.
Annual Trustee Fee
The Trustee may not charge an Annual Trustee Fee at a rate higher than that disclosed in a Prospectus unless:
(a)
the Manager and the Trustee has mutually agreed to the higher rate to be charged;
(b)
the Manager has notified the Unit Holders of the new higher rate and its effective date;
(c)
a new or supplemental prospectus incorporating the new higher rate is issued thereafter; and
(d)
90 days have elapsed since the supplemental prospectus was issued.
14.4
PERMITTED EXPENSES
For TAGF, TACF, TAIF, TIF, TAHGF, TADO, TACP and TAICP
The Trustee shall at the request of the Manager pay out of the Income the following costs, charges and expenses or part
thereof that are directly related and necessary to the business of the Fund:
(a)
all fees authorized by the deed to be paid out of the Fund to the Trustee and the Manager as stipulated;
(b)
all fees and disbursements of the Auditor and members of the Investment Committee;
(c)
professional and accounting fees and disbursements approved by the Trustee;
(d)
the costs of printing and dispatching to Unit Holder the account of the Fund, tax certificates, dividend warrants, notices of
meeting of Unit Holders, newspaper advertisements, expenses in convening meeting of Unit Holders and such other
similar costs as may be approved by the Trustee;
(e)
valuation fees payable in respect of the Fund;
(f)
duties and taxes payable in respect of the Fund;
(g)
the initial/preliminary organizational expenses for the establishment of the Fund including preparation and printing of deed
and any other related documents (including all legal costs and tax advisers fees) as well as lump sum reimbursement; and
(h)
the commissions and/or fees paid to broker in effecting dealings in the investments of the Fund.
For TASF, TASEA, TAGAAF, TAIB, TAEURO, TAUF, TADF, TAACCI and TABRIC
Only the expenses (or part thereof) which are directly related and necessary in operating and administering the Fund may be
charged to the Fund. These would include (but are not limited to) the following:
132
(a)
commissions/fees paid to brokers in effecting dealings in the investments of the Fund, shown on the contract notes or
confirmation notes;
(b)
taxes and other duties charged on the Fund by the Government and/or other authorities;
(c)
costs, fees and expenses properly incurred by the Auditor;
(d)
costs, fees and expenses incurred in the printing and despatching of Fund reports and statement of accounts to unit Holders;
(e)
costs, fees and expenses incurred for the valuation of any asset of the Fund by independent valuers for the benefit of the
Fund;
(f)
costs, fees and expenses incurred for any modification of the Deed save where such modification is for the benefit of the
Manager and/or the Trustee;
(g)
costs, fees and expenses incurred for any meeting of the Unit Holders save where such meeting is convened for the benefit of
the Manager and/or the Trustee;
(h)
costs, commissions, fees and expenses of the sale, purchase, insurance and any other dealing of any asset of the Fund;
(i)
costs, fees and expenses incurred in engaging any specialist approved by the Trustee for investigating or evaluating any
proposed investment of the Fund;
(j)
costs, fees and expenses incurred in engaging any valuer, adviser or contractor for the benefit of the Fund;
(k)
costs, fees and expenses incurred in the preparation and audit of the taxation, returns and accounts of the Fund;
(l)
costs, fees and expenses incurred in the termination of the Fund or the removal of the Trustee or the Manager and the
appointment of a new trustee or management company;
(m) costs, fees and expenses incurred in relation to any arbitration or other proceedings concerning the Fund or any asset of the
Fund, including proceedings against the Trustee or the Manager by the other for the benefit of the Fund (save to the extent
that legal costs incurred for the defence of either of them are not ordered by the court to be reimbursed by the Fund);
(n)
remuneration and out of pocket expenses of the independent members of the Investment Committee of the Fund, unless the
Manager decides to pay out of its own pockets;
(o)
costs, fees and expenses deemed by the Manager to have been incurred in connection with any change or the need to
comply with any change or introduction of any law, regulation or requirement (whether or not having the force of law) of any
governmental or regulatory authority; and
(p)
where the custodian function is delegated by the Trustee, the charges and fees paid to sub-custodians. (Not applicable to
TASEA)
14.5
THE MANAGER’S RIGHT TO RETIRE
The Manager has the power to retire in favour of some other corporation by giving to the Trustee twelve (12) months' (except
TASF, TAIB, TAACCI and TABRIC which is 3 months) notice in writing of the Manager’s desire so to do, or such lesser time as the
Manager and the Trustee may agree upon, and subject to the fulfillment of the following conditions:
•
the retiring Manager shall appoint such corporation by writing under its seal as the Manager of the Fund in its stead
and vests to such appointees all its rights and duties as Manager of the Fund;
•
such corporation shall enter 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;
•
upon the payment to the Trustee of all sums due from the retiring Manager to the Trustee at the date of such
retirement, the retiring Manager shall be absolved and released from all further obligations but without prejudice to
the rights of the Trustee or any Unit Holder or other person in respect of any act or omission on the retiring Manager’s
part prior to such retirement and the new Manager may and shall thereafter exercise all the powers and enjoy all the
rights and shall be subject to all the duties and obligations as fully as though such new Manager had been originally a
party to the Deed.
14.6
THE MANAGER’S POWERS TO REMOVE / REPLACE TRUSTEE
For TASF, TASEA, TAGAAF, TAIB, TAEURO TAUF TADF, TAACCI and TABRIC
The Manager shall take all reasonable steps to replace the Trustee as soon as practicable after becoming aware that:
•
the Trustee has ceased to exist;
133
•
the Trustee has not been validly appointed;
•
the Trustee is not eligible to be appointed or act as a trustee under the Act;
•
the Trustee has failed or refused to act as Trustee in accordance with the provisions and covenants of the Deed or
any relevant law;
•
a receiver is appointed over the whole or substantial part of the assets or undertaking of the Trustee and has not
ceased to act under the appointment,
•
a petition is presented for the winding up of the Trustee (other than for the purpose of and followed by a
reconstruction, unless during or following such reconstruction the Trustee becomes or is declared to be insolvent); or
•
the Trustee is under investigation for conduct that contravenes the Trust Companies Act 1949, the Trustee Act 1949,
the Companies Act 1965 or any relevant law
For TAGF, TACF, TAIF, TIF, TASF, TAHGF, TADO, TACP, TAICP, TASEA, TAGAAF, TAIB, TAEURO, TAUF, TADF,
TAACCI and TABRIC
The Trustee may be removed and another trustee may be appointed by special resolution of the Unit Holders at a duly
convened meeting of which notice has been given to the Unit Holders in accordance with the Deed.
14.7
TRUSTEE’S RIGHT TO RETIRE
The Trustee may retire upon giving twelve (12) month (except for TASF, TAIB, TAACCI and TABRIC which is 3 months) notice
to the Manager of its desire so to do, or such shorter period as the Manager and the Trustee shall agree and may by deed
appoint in its stead or as an additional Trustee a new trustee approved by such authority as may be prescribed by or under any
written law.
14.8
POWER OF TRUSTEE TO REMOVE OR REPLACE THE MANAGER
The Manager may be removed by the Trustee on the grounds that:
•
if the Manager goes into liquidation(except voluntary liquidation for the purpose of reconstruction or amalgamation
upon terms previously approved in writing by the Trustee) or ceases to carry on business or if a receiver shall be
appointed in respect of any undertaking or assets of the Manager or if any encumbrance shall take possession of any
of the Manager’s assets;
•
if an Extraordinary Resolution is duly passed by the Unit Holders that the Manager be removed;
•
if the Manager is in breach of its obligations;
•
if 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 Unit holders’ interest to do so after the Trustee has given notice to them 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;
In any of the above occurs, the Manager shall upon receipt of a written notice from the Trustee ipso facto cease to be the
Manager of the Fund and the Trustee shall by writing appoint some other corporation already approved by the relevant authorities
to be the Manager of the Fund; upon and subject to such corporation entering into such deed or deeds as the Trustee may
consider to be necessary or desirable to be entered into by such corporation in order to secure the due performance of its duties as
Manager for the Fund.
14.9
TERMINATION OF THE FUND
The Fund may be terminated or wound up should the following events occur:
•
The SC’s approval is revoked under section 212(7)(A) of the Act;
•
A special resolution is passed at a Unit Holders’ meeting to terminate or wind up the Fund, following occurrence of
events stipulated under section 301(1) of the Act and the court has confirmed the resolution, as required under
section 301(2) of the Act;
•
A special resolution is passed at a Unit Holders’ meeting to terminate or wind up the Fund;
•
The Fund has reached its maturity date as specified in the Deed; and
•
The effective date of an approved transfer scheme (if any) has resulted in the Fund, which is the subject of the
transfer scheme, being left with no asset/property.
134
For TAGF, TACF, TAIF, TIF, TAHGF, TADO, TACP and TAICP
Upon termination of the Fund, the following provisions shall have effect:
(a)
the Trustee shall as soon as practicable after the termination of the Fund, give to each Unit Holder notice of such
termination;
(b)
the Trustee shall sell all investments then remaining in its hands and repay out of the Fund any liabilities incurred by the
Fund for the time being outstanding and pay out of the Fund all outstanding liabilities and such sell, repayment and
payment shall be carry out and completed in such manner and within such period after the termination of the Fund as the
Trustee thinks advisable;
(c)
the Trustee shall from time to time distribute to the Unit Holders pro-rata to the number of Units held by them respectively,
the net cash proceeds derived from the realization of the Fund and available for the purpose of such distribution and any
available income, provided that the Trustee shall not be bound (except in the case of the final distribution) to distribute any
of the moneys for the time being in its hands the amount of which is insufficient to pay ringgit Malaysia fifty sen (RM0.50)
in respect of each Unit and provided also that the Trustee shall be entitled to retain out of any moneys in its hands, full
provisions for all costs, charges, taxes, expenses, claims and demands incurred, made or apprehended by the Trustee in
connection with or arising out of the liquidation of the Fund and out of the moneys so retained to be indemnified and save
harmless against any such costs, charges, taxes, expenses, claims and demands. Each such distribution shall be made
only against production of such evidence as the Trustee may require to prove the title of the Unit Holder relating to Unit in
respect of which the same is made; or
(d)
in the event that the Fund hereby constituted by the Deed is determined as herein provided, the Trustee shall be at liberty
to call upon the Manager to grant it a full and complete release from and to the Deed and shall indemnify it against any
claims arising out of the execution of the Deed provided that such claims are not caused by its failure to show the degree
of care and diligence as contemplated by the Companies Act 1965.
For TASF, TASEA, TAGAAF, TAIB, TAEURO, TAUF, TADF, TAACCI and TABRIC
Upon the termination of the Fund, the Trustee shall:
(a)
sell all the assets of the Fund then remaining in its hands and pay out of the Fund any liabilities of the Fund; such sale and
payment shall be carried out and completed in such manner and within such period as the Trustee considers to be in the best
interests of the Unit Holders; and
(b)
from time to time distribute to the Unit Holders, in proportion to the number of units held by them respectively:
i)
the net cash proceeds available for the purpose of such distribution and derived from the sale of the investments
and assets of the Fund less any payments for liabilities of the Fund; and
ii)
any available Cash Produce;
provided always that the Trustee shall not be bound, except in the case of final distribution, to distribute any of the moneys for the
time being in his hands the amount of which is insufficient for payment to the Unit Holders of Fifty (50) sen in respect of each unit
and provided also that the Trustee shall be entitled to retain out of any such moneys in his hands full provision for all costs,
charges, taxes, expenses, claims and demands incurred, made or anticipated by the Trustee in connection with or arising out of the
winding-up of the Fund and, out of the moneys so retained, to be indemnified against any such costs, charges, taxes, expenses,
claims and demands; each such distribution shall be made only against the production of such evidence as the Trustee may
require of the title of the Unit Holder relating to the Units in respect of which the distribution is made.
In the event of the Fund is terminated, the Trustee shall be at liberty to call upon the Manager to grant the Trustee, and the
Manager shall so grant, a full and complete release from this Deed and the Manager shall indemnify the Trustee against any
claims arising out of the Trustee's execution of the Deed provided always that such claims have not been caused by any failure
on the part of the Trustee to exercise the degree of care and diligence required of a trustee as contemplated by the Deed and
all relevant laws.
14.10
MEETINGS OF UNIT HOLDERS
The Deed provides that the Trustee, Unit Holders or the Manager may convene Unit Holders’ Meetings. A resolution of Unit
Holders may be required pursuant to the Deed for specific purposes as required under the Deed.
135
14.11
QUORUM REQUIRED FOR CONVENING A UNIT HOLDERS MEETING
For TAGF, TACF, TAIF, TIF, TAHGF, TADO, TACP and TAICP
The quorum for a meeting shall be five (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 the meeting.
For TASEA
The quorum required for a meeting of the Unit Holders shall be five (5) Unit Holders, whether present in person or by proxy,
PROVIDED ALWAYS that the quorum for a meeting of the Unit Holders convened for the purpose of removing the Manager
and/or the Trustee shall be ten (10) Unit Holders, whether present in person or by proxy, who must hold in aggregate at least
fifty per centum (50%) of the Units in circulation at the time of the meeting. Where the Fund has less than five (5) Unit Holders,
the quorum required for a meeting of the Unit Holders of the Fund shall be any number of Unit Holders, whether present in
person or by proxy.
For TAGAAF, TAEURO, TAUF and TADF
The quorum required for a meeting of the Unit Holders shall be five (5) Unit Holders, whether present in person or by proxy,
PROVIDED ALWAYS that the quorum for a meeting of the Unit Holders convened for the purpose of removing the Manager
and/or the Trustee shall be ten (10) Unit Holders, whether present in person or by proxy, who must hold in aggregate at least
fifty per centum (50%) of the Units in circulation at the time of the meeting. Where the Fund has less than five (5) Unit Holders,
the quorum required for a meeting of the Unit Holders of the Fund shall be at least two (2) Unit Holders, whether present in
person or by proxy.
For TASF ,TAIB and TABRIC
The quorum required for a meeting of the Unit Holders shall be five (5) Unit Holders, whether present in person or by proxy,
provided that if the Fund has five (5) or less Unit Holders, the quorum required for a meeting of the Unit Holders of the Fund
shall be two (2) Unit Holders, whether present in person or by proxy; if the meeting has been convened for the purpose of
voting on a Special Resolution, the Unit Holders present in person or by proxy must hold in aggregate at least twenty five per
centum (25%) of the Units in circulation at the time of the meeting.
TAACCI
The quorum required for a meeting of the Unit Holders shall be five (5) Unit Holders, whether present in person or by proxy,
provided always that the quorum for a meeting of the Unit Holders convened for the purpose of voting on a special resolution
shall be five (5) Unit Holders, whether present in person or by proxy, who must hold in aggregate at least twenty five per
centum (25%) of the Units in circulation at the time of the meeting, and provided further that if the Fund has five (5) or less Unit
Holders, the quorum required for a meeting of the Unit Holders of the Fund shall be two (2) Unit Holders, whether present in
person or by proxy; if the meeting has been convened for the purpose of removing the Manager and/or the Trustee, the Unit
Holders present in person or by proxy must hold in aggregate at least twenty five per centum (25%) of the Units in circulation at
the time of the meeting.
14.12
UNIT HOLDERS MEETING CONVENED BY UNIT HOLDERS
Unless otherwise required or allowed by the relevant laws, the Manager shall, within twenty-one (21) days of receiving an
application from not less than fifty (50) or one-tenth (1/10) of all the Unit Holders, whichever is less, summon a meeting of the
Unit Holders by:
(a)
sending by post at least seven (7) days before the date of the proposed meeting a notice of the proposed meeting to all
the Unit Holders; and
(b)
publishing at least fourteen (14) days before the date of the proposed meeting an advertisement giving notice of the
proposed meeting in a national language newspaper published daily and another newspaper approved by the relevant
authorities.
14.13
UNIT HOLDERS MEETING CONVENED BY MANAGER OR TRUSTEE
The Manager or Trustee may convene a Unit Holders’ meeting by giving Unit Holders written notice in the manner prescribed
by the Deed or the relevant laws.
136
16. TAXATION ADVISER’S LETTER
(Prepared for inclusion in this Master Prospectus)
Private and confidential
The Board of Directors
TA Investment Management Berhad
rd
23 Floor Menara TA One
22 Jalan P Ramlee
50250 Kuala Lumpur
Our ref
CTH/LFC/LFJ/TT247/X2
Contact
Ext. 7432
8 October 2010
Dear Sirs
Re:
Taxation of the Funds and Unit Holders
This letter has been prepared for inclusion in the Master Prospectus in connection with the offer of units in the TA
Growth Fund, TA Comet Fund, TA Islamic Fund, TA Income Fund, TA Small Cap Fund, TA High Growth Fund, TA
Dana OptiMix, TA CashPLUS Fund, TA Islamic CashPLUS Fund, TA South East Asia Equity Fund, TA Global
Asset Allocator Fund, TA Asia Pacific Islamic Balanced Fund, TA European Equity Fund, TA Global Utilities Fund ,
TA Dana Fokus, TA All-Cycle Commodities Income Fund and TA BRIC and Emerging Markets Fund (“the Funds”).
Taxation of the Funds
The Funds are treated as unit trusts for Malaysian tax purposes. The taxation of the Funds are therefore
governed principally by Sections 61 and 63B of the Malaysian Income Tax Act, 1967 (“the Act”).
Subject to certain exemptions, the income of the Funds in respect of investment income derived from or accruing
in Malaysia after deducting tax allowable expenses, is liable to Malaysian corporate income tax at the prevailing
rate of 25%. Investment 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.
Under Section 2(7) of the Act, any reference to interest for an Islamic fund 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 Shariah. 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 Shariah, will be accorded the same tax
treatment as if they were interest.
Capital gains from the realisation of investments (whether local or foreign) by the Funds will not be subject to
income tax.
With effect from Year of Assessment (“YA”) 2008, the single-tier company income tax system (“single-tier
system”) replaced the previous dividend imputation system. Under the previous dividend imputation system,
generally taxable Malaysian dividend income received by the Funds would have suffered a tax deduction at
source. Such tax deducted would generally be available for set-off either wholly or partly against the tax liability
of the Funds under the dividend imputation system. Any excess over the tax liability would generally be
refundable to the Funds. Under the single-tier system, dividend income (which is paid or credited under the
single-tier system) received by the Funds will be exempted, and there will be no tax deducted at source available
to the Funds in respect of such dividend income. Saving and transitional provisions apply during the period from
1 January 2008 to 31 December 2013.
137
During such transitional period, the Funds may receive dividends which are paid under the dividend imputation
system and/or dividends which are paid or credited under the single-tier system. During the transitional period,
only dividends (which are paid under the dividend imputation system) paid in the form of cash on ordinary shares
(held continuously for 90 days or more, but the 90 days condition does not apply to dividends received from
shares in public listed companies) would be entitled to the tax deducted at source. The tax deducted at source
will generally be available for set-off either wholly or partly against the tax liability of the Funds. Other nonordinary shares dividends received by the Funds would be exempted from tax.
Interest income or profit earned by the Funds from the following are exempt from tax:§
any savings certificates issued by the Government of Malaysia; or
§
securities or bonds issued or guaranteed by the Government of Malaysia; or
§
debentures or Islamic Securities, other than convertible loan stock, approved by the Securities Commission;
or
§
Bon Simpanan Malaysia issued by the Central Bank of Malaysia; or
§
bonds or securities issued by Pengurusan Danaharta Nasional Berhad; or
§
a bank or financial institution licensed under the Banking and Financial Institutions Act 1989 or Islamic
Banking Act 1983; or
§
Islamic securities (including sukuks) originating from Malaysia, other than convertible loan stock, issued in
any currency other than Ringgit and approved by the Securities Commission or Labuan Financial Services
Authority.
Any income received by the Funds from a Sukuk Issue which has been issued by the Malaysia Global Sukuk Inc
will be exempt from tax.
Discount or profit received by the Funds from sale of bonds or securities issued by Pengurusan Danaharta
Nasional Berhad or Danaharta Urus Sendirian Berhad is exempt from tax.
Discounts earned by the Funds from the following are also exempt from tax:§
securities or bonds issued or guaranteed by the Government of Malaysia; or
§
debentures or Islamic Securities, other than convertible loan stock, approved by the Securities Commission;
or
§
Bon Simpanan Malaysia issued by the Central Bank of Malaysia.
Under the dividend imputation system, deductions in respect of the Funds’ expenses such as manager’s
remuneration, maintenance of register of unit holders, share registration expenses, secretarial, audit and
accounting fees, telephone charges, printing and stationery costs and postage are generally allowed based on a
prescribed formula subject to a minimum of 10% and a maximum of 25% of the total of these expenses. Under
the single-tier system, expenses incurred by the Funds in relation to dividend income (which is paid or credited
under the single-tier system) are disregarded. Saving and transitional provisions apply during the period from 1
January 2008 to 31 December 2013.
Taxation of Unit Holders
Unit holders are taxed on an amount equivalent to their share of the total taxable income of the Funds, to the
extent that this is distributed to them. The income distribution from the Funds may carry with it applicable tax
credits proportionate to each unit holder’s share of the total taxable income in respect of the tax paid by the
Funds. Unit holders will be entitled to utilise the tax credit as a set-off against the tax payable by them. Any
excess over their tax liability will be refunded to the unit holders. No other withholding tax will be imposed on the
income distribution of the Funds.
138
Corporate unit holders (resident or non resident in Malaysia) will be taxed at the prevailing income tax rate of
25% for YA 2010 and subsequet YAs on distributions of income from the Funds to the extent of an amount
equivalent to their share of the total taxable income of the Funds. Corporate unit holders whose paid-up capital
in the form of ordinary shares does not exceed RM2.5 million will be subject to a tax rate of 20% on chargeable
income of up to RM500,000. For chargeable income in excess of RM500,000, the prevailing rate of 25% is still
applicable. However, with effect from YA 2009, the said tax rate of 20% on chargeable income of up to
RM500,000 will not apply if more than 50% of the paid up capital in respect of ordinary shares of that company is
directly or indirectly owned by a related company which has a paid up capital exceeding RM2.5 million in respect
of ordinary shares, or vice versa, or more than 50% of the paid up capital in respect of ordinary shares of both
companies are directly or indirectly owned by another company.
Individuals and other non-corporate unit holders who are resident in Malaysia will be subject to income tax at
scale rates. The prevailing income tax scale rates range from 1% to 26% with effect from YA 2010.
Individuals and other non-corporate unit holders who are not resident in Malaysia, for tax purposes, will be
subject to Malaysian income tax (the prevailing income tax rate of 26%). Non resident unit holders may also be
subject to tax in their respective jurisdictions and depending on the provisions of the relevant tax legislation and
any double tax treaties with Malaysia, the Malaysian tax suffered may be creditable in the foreign tax
jurisdictions.
The distribution of single-tier dividends and other tax exempt income by the Funds will be exempted to tax in the
hands of the unit holders in Malaysia. Distribution of foreign income will also be exempted from tax in the hands
of the unit holders.
Units split by the Funds will be exempted from tax in Malaysia in the hands of the unit holders.
Any gains realised by the unit holders (other than financial institutions, insurance companies and those dealing in
securities) from the transfers or redemptions of the units are generally treated as capital gains which are not
subject to income tax in Malaysia. However, certain unit holders may be subject to income tax in Malaysia on
such gains, due to specific circumstances of the unit holders.
The tax position is based on the Malaysian tax laws and provisions as they stand as at present. All prospective
investors should not treat the contents of this letter as advice relating to taxation matters and are advised to
consult their own professional advisers concerning their respective investments.
Yours faithfully
Chew Theam Hock
Executive Director
139
15. CONFLICTS AND RELATED PARTY
TRANSACTIONS
In the course of managing the Fund, TAIM may face conflicts in respect of its duties to the Fund. In such an event, TAIM is
obliged to act in the best interests of all its investors and will seek to resolve any conflicts fairly and in accordance with the
Deed. TAIM has in place policies and procedures to deal with any of conflict of interest situations.
In making an investment transaction for the Fund, the Manager is obliged not to make inappropriate use of its position in
managing the Fund to gain, directly or indirectly, any advantage for itself or for any other person or to cause detriment to the
interests of Unit Holders.
TAIM or any delegate thereof will, as far as possible in their dealings, avoid any conflict of interest situation or, if conflicts arise,
will ensure that the Fund is not disadvantaged by the transaction concerned. The Compliance Department of TAIM will report
directly to the Board of Directors of any conflict that may arise/ has arisen and the Board of Directors will decide on the next
course of action to remedy the situation. Where a director, a member of the Investment Committee or a delegate of the
Manager is aware of a transaction or an arrangement in which a conflict of interest arises involving a related party or an
associate, he/she must promptly abstain from any decision-making regarding the transaction.
All transactions carried out for or on behalf of the Fund are executed on terms that are best available to the Fund and which are
no less favourable than an arm’s length transactions between independent parties.
None of our directors or substantial shareholders have any direct or indirect interest in other corporations carrying on a similar
business as the Manager as at 30 September 2010.
BHLB Trustee Berhad
To the best of BTB knowledge, the Trustee and its group of companies (i.e. CIMB Bank Berhad & CIMB Group Nominees Sdn
Bhd) may have related party transaction involving or in connection with the Funds in the following circumstances:1) Where the Funds invest in instrument(s) offered by CIMB Group
2) Where the Funds being distributed by CIMB Group as IUTA; and
3) Where the assets of the Funds are being custodised by CIMB Group as sub-custodian of the Fund (i.e. Trustee’s delegate)
In respect of any conflict of interest situation, the Trustee has a policy where at all times, our officers shall act in the best
interests of the Trust and use reasonable efforts to avoid situations that present a potential or actual conflict between their
interests and the interests of the Trust.
A “conflict of interest” exists when an Officer’s private interest interferes in any way – or even appears to interfere – with the
interests of the Trust. A conflict situation can arise when an Officer takes actions or has interests that my make it difficult to
perform his or her work objectively and effectively. Conflicts of interests also arise when trustees, or members of his or her
immediate family, receive improper personal benefits as a result of his or her position in or with the Trust.
Conflicts of interest may not always be clear cut, so if an Officer has a question, he or she should consult with his supervisor.
Any Officer who becomes aware of a conflict or potential conflict should bring the matter to the attention of his or her
supervisor. Officers must not engage directly or indirectly in any business activity that completes or conflicts with the Trustees’
duties, business or interest.
Universal Trustee (Malaysia) Berhad
Universal Trustee (Malaysia) Berhad has confirmed that they have no interest/potential interest or conflict of interest/potential
conflict of interest in the Manager and the Funds.
HSBC (Malaysia) Trustee Berhad
As Trustee for the Funds, there may be related party transaction involving or in connection with the Fund in the following
events:1) Where the Fund invests in instrument(s) 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 IUTA;
3) Where the assets of the Fund are being custodised by the related party of the Trustee both as sub-custodian 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.
140
The Trustee has in place policies and procedures to deal with conflict of interest, if any. The Trustees 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 favorable to the Fund than an arms-length transaction between independent parties.
Subject to any local regulations, the Trustees and/or its related group of companies may deal with each other, the Funds or any
Unit Holder or enter into any contract or transaction with each other, the Funds 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.
Mayban Trustees Berhad
Mayban Trustee Berhad has confirmed that they have no interest/potential interest or conflict of interest/potential conflict of
interest in the Manager and the Funds.
17. CONSENTS
The Trustees, Auditors, Tax Adviser, Shariah Adviser and External Investment Managers have given their written consents to
act in their respective capacities and have not subsequently withdrawn their written consents to the inclusion of their names
and/or letter in the form and context in which it appears in this Master Prospectus prior to the lodgement of a copy of this
Master Prospectus for registration.
18. DOCUMENTS AVAILABLE FOR INSPECTION
During the validity period of this Prospectus, i.e. 12 calendar months from date of the Prospectus, the following documents are
available for inspection at the Manager and the Trustee business office upon request without charge:
(a)
The Deed;
(b)
Any material contract or document referred to in this Master Prospectus;
(c)
All reports, letters or other documents, valuations and statements by any expert;
(d)
Any part of which is extracted or referred to in this Master Prospectus;
(e)
The audited accounts of TA Investment and the Fund for the last 3 financial years or from the date of
incorporation/inception;
(f)
Any consent given by experts or persons named in the Master Prospectus; and
(g)
Latest annual and interim reports of the Fund.
141
ACCOUNT OPENING FORM
In accordance with the requirements of the Capital Markets and Services Act 2007, this Form should not be circulated
unless accompanied by the Prospectus(es)/ Information Memorandum(s) and Supplemental(s) (if any). Investors are
required to read and understand the contents in the Prospectus(es)/ Information Memorandum(s) and Supplemental(s)
(if any) of the Funds before completing this Form.
Acc. No
Individual
Non-Individual
Complete in BLOCK LETTERS, preferably in BLACK INK and tick (√) where applicable.
1. INDIVIDUAL - FIRST APPLICANT
Full Name (as in NRIC/Passport)
Salutation
NRIC/ Passport/Others
Date of Birth
DD / MM / YYYY
Gender
Male
Nationality
Marital Status
Female
Single
Married
Others, please specify
Race
Malaysian, Bumiputera
Malaysian, Non Bumiputera
Non Malaysian, please specify
Religion
Malay
Indian
Chinese
Occupation
Others, please specify
Islam
Hindu
Professional
Buddhist
Christian
Businessman
Others, please specify
Annual Income
Government Servant
Skilled Worker
Managerial/Executive
Education Level
RM30,000 & Below
RM60,001-RM120,000
RM30,001-RM60,000
Mother’s Maiden Name (if any)
Above RM120,001
Others, please specify
Secondary School
Degree
Diploma
EPF Membership No (if any)
Others, please specify
2. INDIVIDUAL - JOINT APPLICANT
Full Name (as in NRIC/Passport)
Salutation
NRIC/ Birth Certificate/ Others
Date of Birth
DD / MM / YYYY
Gender
Male
Telephone No
Relationship with First Applicant
Female
E-mail
3. NON-INDIVIDUAL - COMPANY/INSTITUTION
Name of Company/Institution
Registration No
Nature of Business
Date of Incorporation DD / MM / YYYY
Corporation Type
Country of Incorporation
Business Type
Bumiputera Controlled
Non-Bumiputera
Malaysia
Sendirian Berhad
Government Controlled
Foreign Controlled
Others, please specify
Berhad
Contact Person 1
Partnership
Designation
Email
Direct Line/Mobile No
Contact Person 2
Designation
Email
Direct Line/Mobile No
Government Bodies
Cooperative
Others, please specify
4. ADDRESS & CONTACT
Permanent Address
Postcode
Town
State
Country
Town
State
Country
Correspondence Address
Postcode
Telephone No
Office
House
Mobile
Fax
E-mail
Updated 0710
5. DECLARATION(S) & SIGNATURE(S)
I/We have received, read and understood the latest contents of the relevant Prospectus(es)/ Information Memorandum(s) and Supplemental(s) (if any), and agree to abide by the Notes and Conditions as specified
below. I/We wish to invest in the Fund(s) mentioned above and agree to be bound by the provisions of the Deed(s). I/We declare that the above particulars are true and complete and that no information was
withheld that may influence the acceptance of this application. I/We declare that this application is not funded by gains from any unlawful activities. I am/We are over 18 years old on this application date.
(Signature is not required for joint applicant who is below 18 years old).
FOR JOINT APPLICATION, please tick ( √ ) on account operating instruction for future transactions.
First Applicant/Signatory To Sign Only
First Applicant/ Authorised Signatory 1
FOR DISTRIBUTOR’S USE ONLY
Consultant
Branch
Either One To Sign
Date
Both To Sign
Joint Applicant/ Authorised Signatory 2 (if any)
Company Seal or Stamp
FOR OFFICE USE ONLY
Remarks
Approved By/Date
Direct
IUTA
Date
Received By/Date
Processed By/Date:
Verified By/Date
IMPORTANT
NOTES AND CONDITIONS – Please read the following before completing this Form. By
applying for units of the Funds managed by TA Investment Management Berhad (“TAIM” or
“the Manager”), you are bound by the terms stated below.
1.
2.
a.
b.
c.
3.
a.
INSTRUCTIONS
All instructions given or purported to be given via any written or facsimile transmission
by the applicant, as named in this Form or otherwise in writing are binding on the
applicant. Duly completed forms or instructions from the applicant are deemed
irrevocable.
INDIVIDUAL APPLICANT
First applicant
Complete sections 1, 4 & 5.
A photocopy of the applicant’s NRIC, Passport or other form of identification
document, must be attached. The applicant must be 18 years old and above on the
last birthday.
Joint applicant
The applicant may nominate a joint applicant in which case, a photocopy of the NRIC
must also be provided. The joint applicant is also required to sign this form.
Complete sections 2 & 5.
A joint applicant who is under 18 years of age need not sign this form. Instead, a
photocopy of the NRIC or Birth Certificate is required.
In the event of the death of a joint applicant, the survivor will be the only person
recognised by the Manager as having any title to or interest in the units.
Units registered in joint names with a minor can be redeemed or transferred by the
parent/guardian. On or after the minor’s 18th birthday, the parent/guardian may
request that the units be transferred to the minor’s name. In the event of the death
of the parent/guardian, the Executor or Administrator of the deceased’s estate will be
the only person recognised by the Manager as having title to such units.
Operating instruction
Applicable for joint application only.
The operating instruction empowers the authorised signatory(ies) to operate the
account which includes effecting redemption, transfer, switching, change of address,
distribution instruction and any other requests.
For either one to sign: Proceeds will be made payable to the first applicant, unless
there is a request that the proceeds be made payable to the joint applicant.
NON-INDIVIDUAL APPLICANT
This form must be submitted together with a certified true copy of:-
c.
RIGHT OF THE MANAGER
The Manager shall be entitled to reject any application for units at its sole discretion
without having to furnish any reasons for its rejection to investors.
5.
a.
GENERAL
All investors will be issued with a Statement of Account together with the Fund’s interim
and annual report.
For the wholesale fund(s) investors will be issued with a Monthly Statement of Account,
quarterly and annual reports.
In the case of joint applicants, distribution and tax vouchers will be issued in the name
of the first applicant.
TAIM reserves the right to reassign another qualified person to replace applicant’s
consultant at any time it deems fit without having to give any reason whatsoever.
Funds that are bought from our authorised distribution channel, the completed Account
Opening Form must be submitted to the distribution channel only.
All investors of any particular Fund are eligible to use the Web Facility – TA
Investment@A-Click Plus. This web facility will assist investors to administer and track
their Unit Trust investments more effectively and efficiently. Log on to
www.tainvest.com.my to sign up.
b.
c.
d.
e.
f.
6.
a.
b.
c.
7.
a.
The Memorandum and Articles of Association;
Form 24 (List of Shareholders);
Form 44;
Form 49 (List of Directors);
Board Resolution to authorize the investment;
The operating instruction empowers the authorized signatory(ies) to operate the
account which includes effecting redemption, transfer, switching, change of address,
distribution instruction and any other requests.
4.
The Certificate of Incorporation;
The latest Audited Financial Statement
Operating instruction
b.
CONTACT DETAILS
The onus is on the applicant to notify us of any change in address and contact number
immediately to ensure continuity in the receipt of mails from the Manager.
Transaction advice slips, statements of account, cheques and other documents shall be
sent to the applicant’s correspondence address as detailed in the Form, at the risk of
the applicant. In the event of undelivered mails, TAIM reserves the right to send future
mails to the permanent address as detailed in the Form until further notice from the
applicant.
All details shown in the transaction advice slips or statements of account are deemed to
be correct unless TAIM is notified in writing of any discrepancy within 14 days of issue
or 30 days of issue respectively.
INDEMNITY
The applicant shall fully indemnify TAIM and any of their consultants against any
actions, proceedings, claims, losses, damages, costs and expenses which may be
brought against, suffered or incurred by any or all of them arising either directly or
indirectly out of or in connection with TAIM accepting, relying on or failing to act on any
instructions given by or on behalf of the applicant unless due to the willful default or
negligence of TAIM.
The applicant acknowledges and accepts that TAIM has absolute discretion to rely on
facsimile confirmation from the applicant and undertakes to indemnify and hold
harmless TAIM, its employees and agents against all costs, expenses, losses, damages,
claims and demands arising out of relying on the applicant’s confirmation.
A list of authorized signatories;
Their specimen signatures, together with;
b.
The payment.
The Company Seal or Stamp, if applicable, must be affixed on this form
Updated 0710
INVESTMENT FORM
In accordance with the requirements of the Capital Markets and Services Act 2007, this Form should not be circulated
unless accompanied by the Prospectus(es)/ Information Memorandum(s) and Supplemental(s) (if any). Investors are
required to read and understand the contents in the Prospectus(es)/ Information Memorandum(s) and Supplemental(s)
(if any) of the Funds before completing this Form.
Acc. No
Initial
Additional
Complete in BLOCK LETTERS, preferably in BLACK INK and tick (√) where applicable.
1.
DETAILS
First Applicant’s Full Name/
Name of Company/Institution
First Applicant’s NRIC/ Others/
Registration No.
Contact No. (if any)
Joint Applicant’s Full Name
Joint Applicant’s NRIC/ Others
2.
3.
PAYMENT MODE (PLEASE INDICATE ONE ONLY)
Cash (A maximum of RM 5,000 per application)
EPF Investment Scheme, please specify No.
Deposit Cash/Cheque (Please enclose original bank-in slip)
Cheque/Bank Draft, please specify No.
Online/Telegraphic Transfer (Please enclose online/telegraphic transfer statement)
Others, please specify
INITIAL INVESTMENT
Fund Name
Distribution Instruction
1.
2.
3.
4.
5.
Reinvest
Payout
Reinvest
Payout
Reinvest
Payout
Reinvest
Payout
Reinvest
Payout
RM
Total
4.
ADDITIONAL INVESTMENT
Fund Name
Account No
RM
1.
2.
3.
4.
5.
Total
5.
DECLARATION(S) & SIGNATURE(S)
I/We have received, read and understood the latest contents of the relevant Prospectus(es)/ Information Memorandum(s) and Supplemental(s) (if any), and agree to abide by the Notes and Conditions as specified
overleaf. I/We wish to invest in the Fund(s) mentioned above and agree to be bound by the provisions of the Deed(s). I/We declare that the above particulars are true and complete and that no information was
withheld that may influence the acceptance of this application. I/We declare that this application is not funded by gains from any unlawful activities. I am/We are aware of the fees and charges that I/we will incur
directly or indirectly when investing in the Fund(s). Cancellation of any request is not allowed once TA Investment Management Berhad receives this form.
I/We have read and understood the contents of the Unit Trust Loan Financing Risk Disclosure Statement as specified overleaf. Please tick (
) if you are applying for loan financing.
Signature(s) given must be identical to the Account Opening Form.
First Applicant/ Authorised Signatory 1
Date
FOR DISTRIBUTOR’S USE ONLY
Consultant
Code
Name and Signature
IUTA
Joint Applicant/ Authorised Signatory 2 (if any)
Date
Company Seal or Stamp
FOR OFFICE USE ONLY
Direct
Remarks
Branch
Approved By/Date:
Received By/ Date
Processed By/Date:
Verified By/Date
Updated 1110
IMPORTANT
NOTES AND CONDITIONS – Please read the following before completing this Form. By
applying for units of the Funds managed by TA Investment Management Berhad (“TAIM” or
“the Manager”), you are bound by the terms stated below.
1.
BASIS OF SALE
Units in the Funds are sold only on the basis of information contained in the
Prospectus(es)/ Information Memorandum(s) and Supplemental(s) (if any) and
Deed(s).
2.
INSTRUCTIONS
All instructions given or purported to be given via any written or facsimile
transmission by the applicant, as named in this Form or otherwise in writing are
binding on the applicant. Duly completed forms or instructions from the
applicant are deemed irrevocable.
3.
a.
COMPLETING THIS INVESTMENT FORM AND REQUIRED DOCUMENTS
Initial Investment:
Complete sections 1, 2, 3 & 5 and attach with a completed and signed:-
8.
a.
b.
FIMM Pre-Investment Form (for individual only);
Account Opening Form (required if you are a new applicant and/or
adding/changing joint applicant);
A clear photocopy of NRIC (for individual only);
Board Resolution authorising the investment (for non-individual only);
b.
Payment.
Additional Investment:
Complete sections 1, 2, 4 & 5 and attach with a completed and signed:-
9.
a.
Board Resolution authorising the investment, if applicable
(for non-individual only);
c.
Payment.
Initial Investment – EPF:
Complete sections 1, 2, 3 & 5 and attach with a completed and signed:-
a.
FIMM Pre-Investment Form (for individual only);
d.
Account Opening Form (required if you are a new applicant and/or
adding/changing joint applicant);
b.
KWSP 9N Form;
c.
A clear photocopy of NRIC with complete thumbprint.
Additional Investment – EPF:
Complete sections 1, 2, 4 & 5 and attach with a completed and signed:-
e.
KWSP 9N Form;
A clear photocopy of NRIC with complete thumbprint.
4.
a.
b.
c.
f.
PAYMENT
By cash
Cash may be accepted when the purchase of units is done at the Head Office
subject to a maximum of RM1, 000 per application.
By cheque/bank drafts
The cheque/bank drafts should be crossed and made payable to
“TA INVESTMENT MANAGEMENT BERHAD”.
Please write the applicant’s full name, NRIC/Passport number and Fund Name
at the back of the cheque and attach it to this Form.
By deposit cash/cheque or via online/telegraphic transfer
Alternatively, the applicant may deposit cash/ cheque or make payment via
online or telegraphic transfer into our MAYBANK Account according to the
Fund’s account number as follows:-
All funds except where indicated otherwise
TA CashPLUS Fund
TA Islamic CashPLUS Fund
Third Party Fund
5143 5640 0987
5143 5671 1679
5643 5150 1744
5143 5672 9223
The original bank-in slip/ transfer statement must be attached to this Form. It
must clearly show the applicant’s full name, NRIC/Passport number and Fund
Name.
The Manager will not accept any investment application which is incomplete or not
accompanied by the required documents although payment has been credited into
TAIM’s account.
d.
5.
6.
a.
b.
c.
7.
d.
COOLING-OFF PERIOD
Investors have the right to request for a cancellation of their investment within 6business days or any other period as mentioned in the Prospectus(es)/ Information
Memorandum(s) and Supplemental(s) (if any) from the day of purchase. For details,
please refer relevant Prospectus(es)/ Information Memorandum(s) and
Supplemental(s) (if any).
DISTRIBUTION INSTRUCTION
The applicant may choose to receive any distribution declared by either reinvesting
the distribution amount for additional units in the Fund or by cheque sent to the
applicant at the last correspondence address provided to us;
Distributions will automatically be re-invested for additional units in the Fund if:
No distribution choice is made on the Investment Form;
The distribution cheque is returned as unclaimed through the post;
The distribution cheque is uncashed after six (6) months from date of issue;
The distribution amount is less than RM50.00 or such other amount as
determined by the Manager from time to time;
The investment is made through EPF investment scheme; and
The investment in third party funds.
Any change in distribution instruction must be in writing. If this is done in the last 14
days prior to the distribution declaration date of the Fund, the change will only take
effect from the next distribution point, if any.
RIGHT OF THE MANAGER
TAIM reserves the right to reject any investment request that is unclear, incomplete,
and/or not accompanied by the required documents.
10.
a.
b.
c.
d.
SPECIFIC NOTES & CONDITIONS RELATING TO THE DISTRIBUTION OF
THIRD PARTY FUNDS
Please read the following before completing this form. By applying to invest in units
of the other unit trust management companies’ Funds (“Funds”) distributed by TA
Investment Management Berhad (“TAIM”) as an Institutional Unit Trust Adviser
(“IUTA”), you are bound by the terms stated below.
TRANSACTIONS
The applicant hereby agrees that TAIM shall be a bare Custodian and not a
trustee to hold and act for and on behalf of the applicant in relation to any
units of such Funds as maybe invested in from time to time by the applicant
and TAIM shall not recognise any trust or equity in respect of the units
registered in the name of TAIM at the applicant’s request.
The applicant hereby appoints TAIM as nominee to apply and undertake any
authorised transactions on behalf of the applicant in relation to the Funds.
TAIM will hold the purchased units as registered unit holder for and/or behalf
of the applicant and is authorised to request payment of and receive all
dividends and other payments or distributions in relation to the units.
Transactions for the units may be aggregated and consolidated either daily or
from time to time by TAIM with such transactions as placed or sent by TAIM to
the relevant manager of the Fund.
All transactions with respect to the units effected by TAIM for the applicant
shall be according to the terms of the relevant Prospectus(es)/ Information
Memorandum(s) and Supplemental(s) (if any), deed of the Fund(s) and
applicable laws.
GENERAL
This Form must be received by us before 4.00pm and before 2.00pm (for
investment in Third Party Funds) and if accepted, will be transacted at the NAV
as determined at the end of the Business Day on which this application is received
except for EPF Investment which will be transacted at the NAV as
determined at the end of the Business Day on which the EPF disburse the
payment to the Manager.
For TA CashPLUS Fund and TA Islamic CashPLUS Fund, it will be transacted at the
NAV as determined at the end of the following Business Day after the application is
received.
No certificates will be issued. Once your application is accepted, you will receive an
official receipt in the form of a transaction advice slip from us indicating the number
of units allotted and the confirmed NAV within 14 days.
All investors will be issued with a statement of account together with the Fund’s
interim and annual report.
Funds that are bought from our authorised distribution channel, the completed
Investment Form must be submitted to the distribution channel only.
Applicant utilising their EPF savings may not invest in and/or switch to Funds that are
not allowed by the EPF.
All investors of any particular Fund are eligible to use the Web Facility – TA
Investment@A-Click Plus. This web facility will assist investors to administer and track
their Unit Trust investments more effectively and efficiently. Log on to
www.tainvest.com.my to sign up.
UNIT TRUST LOAN FINANCING RISK DISCLOSURE STATEMENT
Investing in a unit trust scheme with borrowed money is more risky than investing
with your own savings.
You should assess if loan financing is suitable for you in light of your objectives,
attitude to risk and financial circumstances. You should be aware of the risks, which
would include the following:The higher the margin of financing (that is, the amount of money you borrow for
every ringgit of your own money which you put in as deposit or down payment), the
greater the potential for losses as well as gains.
You should assess whether you have the ability to service the repayments on the
proposed loan. If your loan is a variable rate loan, and if interest rates rise, your total
repayment amount will be increased.
If unit prices fall beyond a certain level, you may be asked to provide additional
acceptable collateral or pay additional amounts on top of your normal installments. If
you fail to comply within the time prescribed, your units may be sold to settle your
loan.
Returns on unit trusts are not guaranteed and may not be earned evenly over time.
This means that there may be some years where returns are high and other years
where losses are experienced. Whether you eventually realise a gain or loss may be
affected by the timing of the sale of your units. The value of units may fall just when
you want your money back even though the investment may have done well in the
past.
This brief statement cannot disclose all the risks and other aspects of loan financing.
You should therefore study the terms and conditions carefully before you decide to
take a loan. If you are in doubt about any aspect of this risk disclosure statement or
the terms of the loan financing, you should consult the institution offering the loan.
11. MONEY LAUNDERING STATEMENTS
The applicant hereby warrants that:a.
The applicant is the underlying principal of the Account (where applicable)
b. No person other than the applicant has or will have any interest in the Account
(where applicable); and
c.
All monies as may be paid to TAIM from time to time shall come from a legitimate
(and not illegal) source
d. The applicant agrees to provide all such information and documents as may be
necessary to verify the applicant’s identity and do all such acts and things as may be
necessary to enable TAIM to comply with all applicable anti-money laundering and
counter financing of terrorism (AML/CFT), and know-your-customer laws, rules and
regulations (whether in Malaysia or elsewhere). The applicant agrees that TAIM shall
not be liable or responsible in anyway whatsoever and shall be held harmless against
any loss arising as a result of or in connection with any delay or failure to process
any application or transaction if such information or documents requested by TAIM
have not been promptly provided by the applicant to TAIM.
e.
TAIM reserves the right to terminate the relationship if any documents requested
pursuant to the AML/CFT requirements are not received within 14 business days. In
the event of termination, units will be redeemed at the closing NAV price on the 15th
business day.
Updated 1110
TA Investment Management Berhad (340588 -T)
1-800-38-7147
www.tainvest.com.my
23rd Floor, Menara TA One, 22 Jalan P.Ramlee
50250 Kuala Lumpur
Tel: (603) 2031 6603 I Fax: (603) 2031 4479
KOTA KINABALU
Unit 4-0-14 Ground Floor, Block 4 Api-Api Centre
Jalan Centre Point, 88000 Kota Kinabalu, Sabah
Tel: (088) 247 023 I (088) 236 023 I Fax: (088) 248 463
KUCHING
L204, 1st Floor, Jalan Tunku Abdul Rahman,
93100 Kuching, Sarawak
Tel: (082) 233 203 I Fax: (082) 232 203
MIRI
1st Floor, Lot 3007 Morsjaya Commercial Centre
Airport Road, 98000 Miri, Sarawak
Tel: (085) 430 415 I (085) 439 620 I Fax: (085) 436 044
PENANG
54G, Persiaran Bayan Indah
Bayan Bay, Sungai Nibong
11900 Penang
Tel: (04) 6460 560 I Fax: (04) 6460 576
Master Prospectus 2010/2011
HEAD OFFICE