INFORMATION MEMORANDUM
Maybank Asset Management Sdn. Bhd. (421779-M)
Level 12, Tower C, Dataran Maybank,
No.1, Jalan Maarof, 59000 Kuala Lumpur, Malaysia
Telephone +603 2297 7888
Facsimile +603 2297 7998
www.maybank-am.com
MAYBANK
INSTITUTIONAL
ISLAMIC MONEY MARKET
FUND (MIIMM)
(Constituted by way of deed on 19 October 2012)
Launch date: 7 May 2013
Manager : Maybank Asset Management Sdn. Bhd.
Trustee : OSK Trustees Berhad
(421779-M)
(573019-U)
INVESTORS ARE ADVISED TO READ AND UNDERSTAND THE CONTENT OF THIS INFORMATION MEMORANDUM. IF IN DOUBT, PLEASE CONSULT
A PROFESSIONAL ADVISER.
Page |i
Responsibility Statements
This Information Memorandum has been seen and approved by the directors of
Maybank Asset Management Sdn Bhd (formerly known as Mayban Investment
Management Sdn Bhd) and they collectively and individually accept full responsibility
for the accuracy of all information contained herein and confirm, having made all
enquiries which are reasonable in the circumstances, that to the best of their
knowledge and belief, there are no other facts omitted which would make any
statement herein misleading.
Statements of Disclaimer
The Securities Commission Malaysia has authorized the Fund, the subject of this
Information Memorandum, and the authorization shall not be taken to indicate that the
Securities Commission Malaysia recommends the investment. The Securities Commission
Malaysia will not be liable for any non-disclosure on the part of the Manager and takes
no responsibility for the contents of this Information Memorandum, makes no
representation as to its accuracy or completeness and expressly disclaims any liability
whatsoever for any loss howsoever arising from, or in reliance upon the whole or any
part of the content of this Information Memorandum.
INVESTORS SHOULD RELY ON THEIR OWN EVALUATION TO ASSESS THE MERITS AND RISKS
OF THE INVESTMENT. IN CONSIDERING THE INVESTMENT, INVESTORS WHO ARE IN DOUBT
AS TO THE ACTION TO BE TAKEN SHOULD CONSULT THEIR PROFESSIONAL ADVISERS
IMMEDIATELY.
Additional Statements
Investors are advised to note that recourse for false or misleading statements or acts
made in connection with this Information memorandum is directly available through
sections 248, 249 and 357 of the Capital Markets and Services Act 2007.
This Information Memorandum is not intended to and will not be issued and distributed
in any country or jurisdiction other than in Malaysia (“Foreign Jurisdiction”).
Consequently, no representation has been and will be made as to its compliance with
the laws of any Foreign Jurisdiction. Accordingly, no offer or invitation to subscribe or
purchase Units to which this Information Memorandum relates may be made in any
Foreign Jurisdiction or under any circumstances where such action is unauthorized.
The Maybank Institutional Islamic Money Market Fund has been certified as being
Shariah-compliant by the Shariah Advisory Panel.
Consent to Disclosure
The Manager shall be entitled to transfer, release and disclose from time to time any
information relating to the unit holders to any of the Manager‟s parent company,
subsidiaries, associate company, affiliates, delegates, service providers and/or agents
(including any outsourcing agents and/or data processors) for any purpose on the
basis that the recipients shall continue to maintain the confidentiality of information
disclosed as required by laws, regulations or directives; or in relation to any legal action,
or to any court, regulatory agency, government body or authority.
P a g e | ii
Table of Contents
(1) CORPORATE DIRECTORY .......................................................................................................... 1
(2) DEFINITIONS.............................................................................................................................. 3
(3) RISK FACTORS........................................................................................................................... 6
3.1
3.2
3.3
GENERAL RISKS OF I NVESTING IN THE FUND ..................................................................................6
SPECIFIC RISKS OF THE FUND .......................................................................................................7
RISK MANAGEMENT STRATEGIES AND TECHNIQUES ......................................................................8
(4) INFORMATION ON THE FUND ................................................................................................... 9
4.1
4.2
4.3
4.4
4.5
4.6
4.7
4.8
4.9
4.10
4.11
4.12
4.13
4.14
FUND TYPE ................................................................................................................................9
FUND CATEGORY ......................................................................................................................9
I NITIAL OFFER PRICE ...................................................................................................................9
FINANCIAL YEAR END ................................................................................................................9
TRUSTEE .....................................................................................................................................9
DEED ........................................................................................................................................9
I NVESTMENT OBJECTIVE ..............................................................................................................9
I NVESTOR PROFILE................................................................................................................... 10
ASSET ALLOCATION ................................................................................................................ 10
BENCHMARK .......................................................................................................................... 10
I NVESTMENT STYLE & STRATEGY ................................................................................................ 11
PERMITTED I NVESTMENTS .......................................................................................................... 11
I NVESTMENT RESTRICTIONS ....................................................................................................... 11
VALUATION OF I NVESTMENT ..................................................................................................... 12
(5) FEES, CHARGES AND EXPENSES ............................................................................................. 13
5.1
5.2
5.3
5.4
5.5
5.6
5.7
SALES CHARGE ...................................................................................................................... 13
REDEMPTION CHARGE ............................................................................................................ 13
TRANSFER FEE ......................................................................................................................... 13
SWITCHING FEE ....................................................................................................................... 13
MANAGEMENT FEE ................................................................................................................. 13
TRUSTEE FEE ............................................................................................................................ 14
FUND EXPENSES ...................................................................................................................... 14
(6) TRANSACTION INFORMATION ............................................................................................... 15
6.1
6.2
6.3
6.4
VALUATION POINT .................................................................................................................. 15
COMPUTATION OF NAV ......................................................................................................... 15
PRICING OF UNITS................................................................................................................... 15
ERROR IN PRICING .................................................................................................................. 17
(7) TRANSACTION DETAILS........................................................................................................... 18
7.1
7.2
7.3
7.4
7.5
7.6
7.7
7.8
7.9
7.10
MAKING AN I NVESTMENT......................................................................................................... 18
REDEMPTION OF UNITS ............................................................................................................ 18
TRANSFER O WNERSHIP OF UNITS .............................................................................................. 19
SWITCHING BETWEEN FUNDS .................................................................................................... 19
CUT-OFF TIME FOR I NVESTMENT AND REDEMPTION OF UNITS ..................................................... 19
I NCOME DISTRIBUTION POLICY AND DISTRIBUTION MODE .......................................................... 20
NOTICE OF COOLING-OFF PERIOD .......................................................................................... 20
UNCLAIMED MONIES .............................................................................................................. 21
ANTI-MONEY LAUNDERING POLICIES AND PROCEDURES .......................................................... 21
WINDING UP OF THE FUND ...................................................................................................... 21
(8) THE MANAGER........................................................................................................................ 23
8.1
BACKGROUND I NFORMATION ................................................................................................. 23
P a g e | iii
8.2
8.4
8.5
8.6
8.7
FUNCTIONS, DUTIES AND RESPONSIBILITIES OF THE MANAGER .................................................... 23
BOARD OF DIRECTORS OF THE MANAGER ................................................................................ 23
KEY PERSONNEL OF THE MANAGER .......................................................................................... 24
SHARIAH ADVISORY PANEL ..................................................................................................... 26
ROLES AND RESPONSIBILITIES OF THE SHARIAH ADVISORY PANEL ................................................ 27
(9) THE TRUSTEE............................................................................................................................. 28
9.1
9.2
9.3
9.4
9.5
9.6
9.7
9.8
BACKGROUND I NFORMATION ................................................................................................. 28
EXPERIENCE IN TRUSTEE BUSINESS ............................................................................................. 28
BOARD OF DIRECTORS ............................................................................................................ 29
PROFILE OF KEY PERSONNEL .................................................................................................... 29
DUTIES AND RESPONSIBILITIES OF THE TRUSTEE ............................................................................ 30
TRUSTEE‟S STATEMENT OF RESPONSIBILITY .................................................................................. 30
TRUSTEE‟S DECLARATION ......................................................................................................... 30
TRUSTEE‟S DELEGATE ............................................................................................................... 30
(10) SALIENT TERMS OF THE DEED .................................................................................................. 31
10.1
10.2
10.3
RIGHTS OF UNIT HOLDERS ........................................................................................................ 31
LIABILITIES AND LIMITATION OF UNIT HOLDERS ........................................................................... 31
POWER TO CALL FOR A MEETING ............................................................................................ 31
(11) COMMUNICATION WITH UNIT HOLDERS ................................................................................ 33
11.1
11.2
11.3
11.4
STATEMENT OF ACCOUNTS ...................................................................................................... 33
UNIT PRICE ............................................................................................................................. 33
FINANCIAL REPORTS................................................................................................................ 33
CUSTOMER I NFORMATION SERVICE .......................................................................................... 33
(12) TAX ADVISER’S LETTER............................................................................................................. 34
Page |1
(1)
CORPORATE DIRECTORY
MANAGER
Maybank Asset Management Sdn Bhd (421779-M)
(formerly known as Mayban Investment Management
Sdn Bhd)
REGISTERED OFFICE
14th Floor
Menara Maybank
100 Jalan Tun Perak
50050 Kuala Lumpur
Tel No: 03 - 2074 7111
Fax No: 03 - 2032 1572
BUSINESS OFFICE
Level 12, Tower C, Dataran Maybank
No 1, Jalan Maarof
59000 Kuala Lumpur
Tel No: 03 - 2297 7888
Fax No: 03 - 2297 7998
BOARD OF DIRECTORS
Datuk Mohaiyani Binti Shamsudin (Non-Independent NonExecutive Director/ Chairman)
Mohamed Nor bin Abdul Hamid (Independent NonExecutive Director)
Datuk Karownakaran @ Karunakaran a/l Ramasamy
(Independent Non-Executive Director)
Loh Lee Soon (Independent Non-Executive Director)
Datuk Abdul Farid bin Alias (Non-Independent NonExecutive Director)
Nor‟ Azamin bin Salleh (Non-Independent Executive
Director/ Managing Director)
SHARIAH ADVISORY
OF THE MANAGER
PANEL
Tan Sri Dato‟ Seri (Dr) Haji Harussani Haji Zakaria
Dr Ismail bin Mohd @ Abu Hassan
Dr Mohammad Deen bin Mohd Napiah
COMPANY
SECRETARY
Daeng Hafez Arafat bin Zuhud (LS0007002)
5, Jalan Bunga Kertas 2/15
40000 Shah Alam
Selangor
TRUSTEE
OSK Trustees Berhad (573019-U)
REGISTERED OFFICE
Level 10, Tower One
RHB Centre
Jalan Tun Razak
50400 Kuala Lumpur
Tel : 03- 9287 8888
Fax: 03- 9280 6507
BUSINESS OFFICE
6th Floor, Plaza OSK
Jalan Ampang
50450 Kuala Lumpur
Tel : 03-9207 7777
Page |2
Fax: 03-2175 3288/ 2175 3223
Web: www.osktrustees.com.my
Email : oskt_hq-corptrustop@my.oskgroup.com
TRUSTEE’S DELEGATE
Malayan Banking Berhad (3813-K)
Maybank Custody Services - Transaction Banking,
Global Banking
4th Floor, Menara Maybank
100, Jalan Tun Perak
50050 Kuala Lumpur
Tel: 03 - 20743962
Fax: 03 - 20321572 / 20700966
AUDITORS
Ernst & Young
Level 23A, Menara Milenium, Jalan Damanlela
Pusat Bandar Damansara
50490 Kuala Lumpur
Tel No : 603 7495 8000
Fax No : 603 2095 7043
TAX ADVISER
Ernst & Young Tax Consultants Sdn Bhd
Level 23A, Menara Milenium, Jalan Damanlela
Pusat Bandar Damansara
50490 Kuala Lumpur
Tel No : 603 7495 8000
Fax No : 603 2095 9076/78
SOLICITORS
Naqiz & Partners
No. 42A, Lorong Dungun
Damansara Heights
50490 Kuala Lumpur
PRINCIPAL BANKER
Malayan Banking Berhad (3813-K)
Menara Maybank
100 Jalan Tun Perak
50050 Kuala Lumpur
FEDERATION OF
INVESTMENT
MANAGERS
MALAYSIA
Federation of Investment Managers Malaysia (FIMM)
19-07-3 7th Floor PNB Damansara
No. 19 Lorong Dungun
Damansara Heights
50490 Kuala Lumpur
Tel : 03-2093 2600
Fax : 03-2093 2700
Page |3
(2)
DEFINITIONS
In this Information Memorandum, the following abbreviations or words shall have the
following meanings unless otherwise stated:
Act/ CMSA
means the Capital Markets And Services Act 2007,
including all amendments thereto and all regulations, rules
and guidelines issued in connection therewith.
Bank Negara Malaysia
means the central bank of Malaysia.
Bursa Malaysia
means the stock exchange managed and operated by
Bursa Malaysia Securities Berhad (635998-W).
Business Day
means a day on which Bursa Malaysia is open for trading.
CMSRL
means Capital Markets Services Representative‟s Licence.
Deed
means the deed in respect of the Fund and any other
supplemental deed that may be entered into between
the Manager and the Trustee.
Forward Pricing
means the Net Asset Value per Unit for the Fund
calculated at the next valuation point after a purchase
request or a redemption request, as the case may be, is
received by the Manager.
Fund/MIIMM
means the Maybank Institutional Islamic Money Market
Fund.
GII
means Government Investment Issue.
Guidelines
means the Guidelines on Wholesale Funds issued by the SC
and any other relevant guidelines issued by the SC.
Initial Offer Period
means the period of 21 calendar days from the date of this
Information Memorandum or any other shorter period as
determined by the Manager.
Info Memo
means the Information Memorandum of this Fund.
Islamic Deposit
means Shariah-compliant money placement with financial
institutions ranging from overnight placement to a tenure
of not more than one (1) year offered by financial
institutions.
LPD
means latest practicable date as at 31 March 2013.
Manager/ Management
means Maybank Asset Management Sdn Bhd (421779-M)
(formerly known as Mayban Investment Management Sdn
Bhd).
Company/MaybankAM
MAHB
Means Mayban Ageas Holdings Berhad.
Page |4
MARC
Means Malaysian Rating Corporation Berhad (364803-V).
Net Asset Value or NAV
means the total value of the Fund‟s assets minus its
liabilities at the valuation point. For the purpose of
computing the annual management fee and annual
trustee fee, it should include the management fee and the
trustee fee for the relevant day.
NAV per Unit
means the NAV of the Fund divided by the total number of
Units in circulation at the valuation point.
NID
means Shariah-compliant
Deposits.
Qualified Investor
Qualified Investor refers to:-
Negotiable
Instrument
of
(a) an individual whose total net personal assets, or total
net joint assets with his or her spouse, exceed RM3
million or its equivalent in foreign currencies, excluding
the value of the individual‟s primary residence;
(b) an individual who has a gross annual income
exceeding RM300,000 or its equivalent in foreign
currencies per annum in the preceding 12 months;
(c) an individual who, jointly with his or her spouse, has a
gross annual income exceeding RM400,000 or its
equivalent in foreign currencies in the preceding 12
months;
(d) a corporation with total net assets exceeding RM10
million or its equivalent in foreign currencies based on
the last audited accounts;
(e) a partnership with total net assets exceeding RM10
million or its equivalent in foreign currencies;
(f)
a unit trust scheme or prescribed investment scheme;
(g) a private retirement scheme;
(h) a closed-end fund;
(i)
a company that is registered as a trust company
under the Trust Companies Act 1949 which has assets
under management exceeding RM10 million or its
equivalent in foreign currencies;
(j)
a corporation that is a public company under the
Companies Act 1965 which is approved by the SC to
be a trustee under the Act and has assets under
management exceeding ten million ringgit or its
equivalent in foreign currencies;
(k) a statutory body established by an Act of Parliament
or an enactment of any State;
(l)
a pension fund approved by the Director General of
Inland Revenue under section 150 of the Income Tax
Act 1967;
Page |5
(m) a holder of a capital markets services licence;
(n) a licensed institution;
(o) Islamic bank;
(p) an insurance company licensed under the Insurance
Act 1996;
(q) a takaful operator registered under the Takaful Act
1984;
(r)
a bank licensee or insurance licensee as defined
under the Labuan Financial Services and Securities
Act 2010; and
(s)
an Islamic bank licensee or takaful licensee as defined
under the Labuan Islamic Financial Services and
Securities Act 2010.
RAM
means RAM Rating Services Berhad.
Redemption Price
means the price payable by the Manager to a Unit Holder
pursuant to a redemption request by the Unit Holder and
will be the NAV per Unit of the Fund. The redemption price
shall be exclusive of the redemption charge (if any).
RM
means Ringgit Malaysia.
Selling Price
means the price payable by an investor or a Unit Holder for
the purchase of a Unit of the Fund and will be the NAV per
Unit of the Fund. The selling price shall be exclusive of the
sales charge.
Shariah
means Islamic law comprising the whole body of rulings
pertaining to human conducts derived from the 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 Advisory Panel
means the Shariah committee in relation to the Fund.
Short Term
means a period of less than 1 year.
SC
means the Securities Commission Malaysia.
Trustee
means OSK Trustees Berhad (573019-U)
Unit(s)
means a measurement of the right or interest of a Unit
Holder in the Fund and means a Unit (including a fraction
of a Unit) of the Fund.
Unit Holder(s)
means the person registered as a holder of a Unit or Units
including persons jointly registered for the Fund.
Page |6
(3)
RISK FACTORS
This section of the Info Memo provides you with information on the general risks
involved when investing in the wholesale fund and the specific risks associated
with the securities/instruments that the Fund will be investing in.
3.1
General Risks of Investing in the Fund
An Investor should consider the following general risks when investing in the Fund:
Management Risk
Poor management of the Fund might jeopardize the investment of Unit Holders.
Thus, it is important for the Manager to set the investment policies and appropriate
strategies to be in line with the investment objective before any investment
activities can be considered. However, there can be no guarantee that all
measures mentioned above will produce the desired results.
Market Risk
The value of an investment will decrease due to adverse changes in market
factors i.e. economic, political, or other adverse events that impact large portions
of the market. Market risk cannot be eliminated, hence the Manager will monitor
the financial markets closely and act on any adverse news accordingly.
Risk of Non-Compliance
It is the risk that the Manager may not follow the provisions set out in the Info
Memo, the Deed or the law that governs the Fund. It is also the risk that the
Manager may act fraudulently or dishonestly which may result in the Fund being
mismanaged and in turn, may affect the Unit Holders‟ investments.
Inflation risk
Inflation is a risk that creates uncertainty over the future value of the investments.
Any investment in wholesale funds is subject to the risk that Unit Holder‟s
investments shall not grow proportionately with the inflation rate. A return on
investment which is lower than inflationary rate would reduce Unit Holder‟s
purchasing power per RM even though the value of the investment in monetary
terms has increased.
Returns are not Guaranteed
Investors should be aware that by investing in the Fund, there is no guarantee of
any income distribution or capital appreciation. Unlike Islamic Deposits which carry
a specific rate of return, the Fund does not provide a fixed rate of return.
Financing Risk
In the case of an investor who obtains financing to invest in the Fund, the
financing cost may be higher than the gains derived (if any) from investing in the
Fund. Investors are discouraged from financing the purchase of Units via
borrowings. Investors should assess the inherent risk of investing with borrowed
money which should include the following:
Page |7
1. Investors‟ ability to service the financing repayments;
2. The effect of increase in the cost of borrowings; and
3. If Units are used as collateral, when the value of the investment falls below a
certain level, Investors may be asked by the financing providers to top up the
collateral or reduce the outstanding loan amount to the required level.
3.2
Specific Risks of the Fund
An Investor should consider the following risks when investing in the Fund:Liquidity Risk
The liquidity risk of the Fund is the ability of the Manager to honour redemption
requests or to pay Unit Holders‟ redemption proceeds in a timely manner. This is
subject to the Fund‟s holding of adequate liquid assets. Should there be
inadequate liquid assets held, the Fund may not be able to honour redemption
requests or to pay Unit Holders‟ redemption proceeds in a timely manner and may
be forced to dispose assets of the Fund at unfavorable prices to meet redemption
requirements.
It is the Fund‟s objective to provide liquidity of T+1. Nonetheless, Unit Holders should
be aware that the liquidity of T+1 may not be achievable should the redemption
amount exceed 50% of the Funds‟ NAV. In such an event, the Manager reserves
the right to pay the redemption proceeds to the Unit Holders within 30 days from
the day the redemption request is received by the Manager.
Profit Rate Risk
Profit rates in Islamic Deposits, like the conventional deposits closely track the
Overnight Policy Rate (“OPR”) which is solely determined by Bank Negara
Malaysia during its scheduled Monetary Policy Committee (“MPC”) meeting
throughout the year. In the event where the Manager is expecting Bank Negara
Malaysia to hike the profit rate, investments in Islamic Deposits will likely focus
along the shorter tenure and likewise, if the Manager anticipates that Bank
Negara Malaysia would lower the profit rate, the Manager will likely focus along
the longer tenure. This mitigation is adopted to alleviate from the potential
opportunity loss that the Unit Holders may suffer due to the change in the profit
rate levels.
On the other hand, Shariah-compliant money market instruments and Islamic
securities are tradable and therefore, profit rates will be determined by supply and
demand for such investments in the trading market. That said, Investors may suffer
opportunity loss should the profit rate for the investments made in Shariahcompliant money market instruments and Islamic securities goes higher than the
profit rate that has been locked in and vice versa, when profit rate moves down,
there will be opportunity gain from the investments made as the profit rate that
has been locked in is higher than the profit rate of similar investments in the current
financial market. In mitigating risks brought by a change in the level of profit rates,
the Manager will invest in Shariah-compliant money market instruments and
Islamic securities with shorter tenures in order to alleviate portfolio volatility.
Page |8
Credit/Default Risk
This risk occurs when the financial institution/ issuer of the investments of the Fund is
unable to service the payments and/or repay the principal amount as and when it
is due. This may lead to a default in the payment of principal amount as well as
profit payments and ultimately a reduction in the value of the Fund. In such cases,
investors may be exposed to investment losses in terms of their principal invested
and/or potential returns on investment.
Concentration Risk
Investors should be aware of the concentration risk of the Fund, as the Fund will
invest a minimum of 80% of its NAV in deposits with Maybank Islamic Berhad, The
Fund‟s value will be affected in the event that Maybank Islamic Berhad faces any
economic or financial instability that may result in the default of profit and/or
principal payment. Investors may be exposed to investment losses in terms of their
principal invested and/or potential returns on investment.
3.3
Risk Management Strategies and Techniques
Prudent strategies will be adopted in structuring the Fund‟s portfolio as the
Manager will assess the investment prospects of the placements/instruments and
securities to the underlying profit rate factors, market outlook and other prevailing
factors.
The credit risks assumed relating to Maybank Islamic Berhad Islamic Deposits,
Shariah-compliant money market instruments, GII and/or Shariah-compliant
securities guaranteed by the Government of Malaysia and/or Shariah-compliant
notes/securities issued by Bank Negara Malaysia invested by the Fund are
mitigated via fundamental credit research. The credit worthiness of Maybank
Islamic Berhad and issuers of the instruments/ securities/ notes invested in will be
regularly monitored. Furthermore, the Manager will also monitor the yield and
duration structure of the money market portion to manage profit rate risk.
It is important to note that events affecting the investments cannot always be
foreseen. Therefore, it is not always possible to protect investments against all risks.
The various asset classes generally exhibit different levels of risks. Please note that
the returns of the Fund are not guaranteed.
The investments of the Fund carry risks and investors are recommended to read
the whole Info Memo to assess the risks of the Fund.
Investors are reminded that the above list of risks may not be exhaustive and if
necessary, they should consult their adviser(s), e.g. their bankers, lawyers,
stockbrokers or independent financial advisers for a better understanding of the
risks.
Page |9
(4)
INFORMATION ON THE FUND
4.1
Fund Type
Income.
4.2
Fund Category
Shariah-compliant money market
4.3
Initial Offer Price
The Initial Offer Price of the Fund is RM1.00 per Unit.
4.4
Financial Year End
Every 31 December of the calendar year.
4.5
Trustee
OSK Trustees Berhad
4.6
Deed
Deed dated 19 October 2012 relating to the Fund entered into between the
Manager and the Trustee, that will include any other supplemental deed as may be
executed between the Manager and the Trustee from time to time.
4.7
Investment Objective
The Fund is a money market fund that aims to:
•
provide Unit Holders with a return that exceeds the benchmark;
•
provide Unit Holders with liquidity of T+1*;
•
preserve capital**; and
•
provide regular income*** stream (if any) to the Unit Holders.
* However, if the total redemption amount for that day exceeds 50% of the Fund’s
NAV, the Manager reserves the right to pay the redemption proceeds to the Unit
Holders within 30 days from the day the redemption request is received by the
Manager.
**The Manager shall aim to preserve the capital of Unit Holders. Nonetheless, the
Fund is neither a capital guaranteed fund nor a capital protected fund.
***Income could be in the form of cash or Units. For further details, please refer to
item xvii on Income Distribution Policy and Distribution Mode of the Fund.
P a g e | 10
T is the Business Day where a request/application to redeem is received by the
Manager before the cut-off time.
4.8
Investor Profile
The Fund is suitable for Qualified Investors:
•
•
•
•
•
who seek Shariah-compliant investments;
with a Short Term investment horizon;
who have a low risk tolerance;
who seek a regular income* stream from their investments; and
who wish to obtain a yield exceeding “Maybank Islamic Overnight Deposit
Rate”.
Note* :
4.9
Income could be in the form of cash or Units. For further details,
please refer to item 7.6 on Income Distribution Policy and
Distribution Mode of the Fund.
Asset Allocation
Investment instruments
Limits
Minimum 80% of the
Fund‟s NAV
Up to 20% of the Fund‟s
NAV.
Islamic Deposits in Maybank Islamic Berhad.
Shariah-compliant
money
market
instruments such as treasury bills, bankers
acceptance, Bank Negara Malaysia bills,
Bank Negara Malaysia negotiable notes
and NID with maturities not exceeding one
(1) year; and/or
GII and/or Shariah-compliant securities
guaranteed by the Government of
Malaysia
and/or
Shariah-compliant
notes/securities issued by Bank Negara
Malaysia with maturities not exceeding two
(2) years.
4.10
Benchmark
Maybank Islamic Overnight Deposit Rate.
Note: For the purpose of the Fund, the benchmark is used as a yardstick to assess the
performance of the Fund only. It is not an indication of the risk profile of the Fund’s
investment. The risk profile of the Fund is different from the risk profile of the
benchmark. Investors of the Fund may assume a higher risk as compared to a
P a g e | 11
depositor of the Maybank Islamic Overnight Deposit rates. As a result of the higher risk
assumed, Unit Holders should expect returns that are higher than the benchmark and
Unit Holders should also be advised that unlike a placement in a deposit, there is
potential for losses.
4.11
Investment Style & Strategy
The Fund seeks to provide liquidity of T + 1 to meet the cash flow requirements of its
Unit Holders by investing in liquid investments.
The Fund seeks to obtain a yield that exceeds its benchmark and to provide
regular income stream to the Unit Holders by placing a minimum of 80% of its NAV
in Islamic Deposit in Maybank Islamic Berhad and up to 20% of its NAV in Shariahcompliant money market instruments with maturity not exceeding one (1) year
and/or GII and/or Shariah-compliant securities guaranteed by the Government of
Malaysia and/or Shariah-compliant notes/ securities issued by Bank Negara
Malaysia with maturity not exceeding two (2) years.
The Manager adopts an active investment strategy in managing the Fund.
4.12
Permitted Investments
Subject to the Deed, the investment policies for the Fund and the requirements of
the SC and any other regulatory body, the Manager has the absolute discretion as
to how the assets of the Fund are to be invested.
The Fund is permitted to invest in the following:-
4.13
•
Islamic Deposits;
•
Shariah-compliant money market instruments, such as treasury bills, bankers
acceptance, Bank Negara Malaysia bills, Bank Negara Malaysia negotiable
notes and NID; and
•
GII and/or Shariah-compliant securities guaranteed by the Government of
Malaysia and/or Shariah-compliant notes/securities issued by Bank Negara
Malaysia.
Investment Restrictions
The Fund is subject to the following investment restrictions/limits:(i) Islamic Deposits with tenure of not more than one (1) year;
(ii) The value of the Fund‟s holding in Islamic Deposits with Maybank Islamic
Berhad must not be less than 80% of the NAV of the Fund; and
(iii) The value of the Fund‟s holding in:
Shariah-compliant money market instruments such as treasury bills,
bankers acceptance, Bank Negara Malaysia bills, Bank Negara Malaysia
negotiable notes and NID with maturities not exceeding one (1) year;
and
P a g e | 12
GII and/or Shariah-compliant securities guaranteed by the Government
of Malaysia and/or Shariah-compliant notes/securities issued by Bank
Negara Malaysia with maturities not exceeding two (2) years;
must not exceed 20% of the NAV of the Fund.
The above limits and restrictions must be complied with at all times based on the
most up-to-date value of the Fund and value of the investments. However, a 5%
allowance in excess of any limit or restriction may be permitted where the limit or
restriction is breached through the appreciation or depreciation of the NAV of the
Fund (whether as a result of an appreciation or depreciation in the value of the
investments, or as a result of redemption of Units or payment made from the Fund).
The Manager will not make any further acquisitions to which the relevant limit is
breached and the Manager should within a reasonable period of not more than
sixty (60) days from the date of the breach take all necessary steps and actions to
rectify the breach.
4.14
Valuation of Investment
The valuation bases of the permitted investments of the Fund are as follows:
a) Islamic Deposits placed with financial institutions are valued daily by reference
to the principal value of such investments and profit accrued thereon for the
relevant period;
b) Shariah-compliant treasury bills, bankers acceptance, Bank Negara Malaysia
bills and Bank Negara Malaysia negotiable notes shall be valued daily based
on accretion to maturity value of the instruments;
c) NID will be valued each day based on the yield to maturity of the instruments
using the profit rate swap quoted by Bank Negara Malaysia. In the event that
profit rate swap quoted by Bank Negara Malaysia is not available, the
average of the profit rate swaps quoted by three (3) local financial institutions
shall be deemed to be the most appropriate valuation to be referred to by the
Manager;
d) For unlisted Shariah-compliant RM-denominated fixed income securities such
as GII and/or Shariah-compliant securities guaranteed by the Government of
Malaysia and/or Shariah-compliant notes/securities issued by Bank Negara
Malaysia, valuation will be done on a daily basis using the fair value quoted by
Bond Pricing Agency (“BPA”). In the event that value quoted by BPA is not
available, the average of price quoted by three (3) financial institutions shall
be deemed to be the most appropriate valuation to be referred to by the
Manager.
P a g e | 13
(5)
FEES, CHARGES AND EXPENSES
It is important that investors fully understand the fees and charges associated with an
investment in the Fund. Like all other financial services, they are delivered to the
investors at a cost.
Before making a decision, the fees, charges and expected returns must be
considered to assess the pros and cons of investing in the Fund.
Fees/ Charges
The following describes the fees/ charges that investors may directly incur:
5.1
Sales Charge
The Manager will not impose a sales charge.
5.2
Redemption Charge
The Manager will not impose a redemption charge.
5.3
Transfer Fee
Not applicable as transfer facility is not available.
5.4
Switching Fee
Not applicable as switching facility is not available.
Fees And Expenses
The fees and expenses indirectly incurred by an investor when investing in the
Fund are as follows:
5.5
Management Fee
The Manager is entitled to the management fee of up to 0.40% per annum of the
NAV of the Fund, calculated and accrued daily and payable monthly to the
Manager.
Please note that the example below is for illustration only:
Assuming the NAV of the Fund (before deducting the management fee and
trustee fee) for a particular day is RM30,000,000 with a management fee of 0.40%,
then the accrued management fee for that day would be:-
P a g e | 14
RM30,000,000 x 0.40% = RM328.77 per day
365 days
5.6
Trustee Fee
The Trustee is entitled to a fee of 0.02% per annum of the NAV of the Fund, subject
to a minimum fee of RM15,000 per annum. The trustee fee is calculated and
accrued daily and payable monthly to the Trustee.
Please note that the example below is for illustration only:
Assuming that the NAV of the Fund is RM 30,000,000 for the day, the accrued
trustee fee for that day would be:RM30,000,000 x 0.02%
365 days
5.7
= RM16.44per day
Fund Expenses
Only expenses directly related and necessary in operating and administering the
Fund as provided in the Deed may be paid out of the Fund. These include the
following:
a)
b)
c)
d)
e)
f)
Tax and other duties charged on the Fund by the Government and other
authorities;
The fees and other expenses properly incurred by the auditor appointed
for the Fund;
Fees for the valuation of any investments of the Fund by independent
valuers;
Cost incurred for the modification of the Deed of the Fund other than
those for the benefit of the Manager or Trustee;
Cost incurred for any meeting of the Unit Holders other than those
convened by, or for the benefit of, the Manager or Trustee; and
Any other fees/expenses permitted in the Deed.
These costs shall be factored into the computation of the NAV.
There are fees and charges involved and investors are advised to consider the
fees and charges before investing in the Fund.
P a g e | 15
(6)
TRANSACTION INFORMATION
6.1
Valuation Point
The Fund must be valued at least once every Business Day. The valuation of the
Fund will be carried out in a fair and accurate manner. The Fund will be valued at
11.30 a.m. every Business Day.
6.2
Computation of NAV
NAV of the Fund is determined by deducting the value of the Fund‟s liabilities from
the value of the Fund‟s assets, as at the valuation point. The liabilities are inclusive
of the management fee and trustee fee for the day.
An illustration on how NAV per Unit is calculated (on a Business Day) is as follows:
Example
NAV
=
RM 25,023,711.32
Units
=
25,000,000
NAV/Units
=
RM 25,023,711.32
25,000,000
NAV per Unit
RM 1.000948
Note : RM 1.000948 (rounded to nearest 6 decimal places for publication
purposes)
6.3
Pricing of Units
Forward Pricing
The selling and redemption transactions are executed at the Forward Price.
Selling Price
Based on the single pricing regime, the Selling Price per Unit is the NAV per Unit of
the Fund. Any sales charge payable by the Unit Holder would be calculated as a
percentage of the Selling Price per Unit of the Fund.
(a)
During Initial Offer Period
During the Initial Offer Period, the Selling Price per Unit shall be RM1.0000 which is
the initial offer price. A sales charge (if any) will be computed separately based on
the net investment amount / purchase amount.
P a g e | 16
Illustration:
If Unit Holder purchased 5,000,000 Units during the Initial Offer Period with no sales
charge , a sum of RM 5,000,000.00 would be payable as follows:
Investment amount (5,000,000 Units X RM1.0000)
Add: Sales charge @ 0%
Total amount paid by the Unit Holder
(b)
=
=
=
RM 5,000,000.00
RM
0.00
RM 5,000,000.00
After Initial Offer Period
After the Initial Offer Period, the Selling Price per Unit shall be the NAV of a Unit as
at the next valuation point after an application of Unit is received by the
Manager. A sales charge (if any) will be computed separately based on the net
investment amount / purchase amount.
Illustration:
If a Unit Holder makes an investment of RM5,000,000.00 at the Selling Price per Unit
of RM1.022900 (which is the Fund‟s NAV of a Unit as at the next valuation point)
with no sales charge, a sum of RM5,000,000.00 would be payable as follows:
Investment amount
Add: sales charge @ 0%
Total amount paid by the Unit Holder
=
=
=
RM 5,000,000.00
RM
0.00
RM 5,000,000.00
The Unit Holder will be allotted with Units calculated as follows:
Units computed is
calculated as
RM 5,000,000.00
RM 1.022900
=
4,888,063.3493 Units
=
4,888,063.35 Units*
*Units computed are rounded to the nearest 2 decimal places.
Redemption Price
The Redemption Price of a Unit of the Fund is the NAV per Unit of the Fund as at
the next valuation point after the redemption request is received by the Manager.
Any redemption charge payable by the Unit Holder would be calculated as a
percentage of the Redemption Price per Unit of the Fund.
a)
During Initial Offer Period
During the Initial Offer Period, the Redemption Price shall be RM1.0000 which is the
initial offer price.
(b)
After Initial Offer Period
After the Initial Offer Period, the Redemption Price shall be the NAV per Unit as at
the next valuation point after the redemption request is received by the Manager.
P a g e | 17
Illustration:
If Unit Holder redeems 100,000 Units any time after the Initial Offer Period, assuming
the NAV per Unit as at the next valuation point is RM1.022900, the Unit Holder
would receive net proceeds of redemption of RM102,290.00 as follows:
Redemption
proceeds:
6.4
100,000 Units x RM 1.022900
=
RM102,290.00
Error in Pricing
Subject to any relevant law, if there is an error in the valuation and/or pricing of
the Fund and/or NAV per Unit of the Fund, the Manager will take immediate
remedial action to correct the error. Rectification shall, where necessary, extend
to the reimbursements of money as follows if the error is, at or above the significant
threshold of 0.5% of the NAV per Unit:
(a)
if there is an over pricing in relation to the purchase and creation of Units, the
Fund shall reimburse the Unit Holder;
(b)
if there is an over pricing in relation to the repurchase of Units, the Manager
shall reimburse the Fund;
(c)
if there is an under pricing in relation to the purchase and creation of Units,
the Manager shall reimburse the Fund; and
(d)
if there is an under pricing in relation to the repurchase of Units, the Fund shall
reimburse the Unit Holder or former Unit Holder.
The Manager retains the discretion whether or not to reimburse if the error is below
0.5% of the NAV per Unit or where the total impact on an individual account is less
than RM10.00 in absolute amount as the reprocessing costs might be greater than
the adjustment amount.
There are fees and charges involved and investors are advised to consider the
fees and charges before investing in the Fund.
P a g e | 18
(7)
TRANSACTION DETAILS
7.1
Making an Investment
For initial investment and subsequent additional investment of the Fund, it is
specified as follows:Fund
Minimum Initial Investment
MIIMM
RM5,000,000 or such other
amount as may be
decided by the Manager
from time to time.
Minimum Additional
Investment
RM250,000 or such other
amount as may be
decided by the Manager
from time to time.
Processing of Application
For any purchase application received or deemed to have been received via fax
notification by the Manager on or before the cut off time of 10.00 am on any
Business Day, the Units would be created based on the NAV per Unit as at the next
valuation point after the request for purchase of Units is received and accepted
by the Manager. Any application received or deemed to have been received
after this cut-off time would be considered as being transacted on the next
Business Day.
7.2
Redemption of Units
Redemption request/application can be made on any Business Day.
For any redemption application received or deemed to have been received via
fax notification by the Manager on or before 4.00 p.m., the Units would be
cancelled based on the NAV per Unit as at the next valuation point after the
request for redemption of Units is received and accepted by the Manager. Any
application received or deemed to have been received after this cut-off time
would be considered as being transacted on the next Business Day. The Manager
will pay the redemption proceeds to Unit Holders within one (1) Business Day after
the redemption request is received and accepted by the Manager on/ before the
cut-off time.
However, if the total redemption amount for that day exceeds 50% of the Fund‟s
NAV, the Manager reserves the right to pay the redemption proceeds to the Unit
Holders within 30 days from the day the redemption request is received by the
Manager.
The Manager shall remit redemption proceeds to the account held in the name of
the Unit Holder(s).
For both creation and redemption of Units, the Manager shall not be held
responsible for any delay / loss incurred in the event of:
P a g e | 19
•
•
•
•
Real Time Electronic Transfer of Funds and Securities (RENTAS) experiencing
problems;
Any remittance of fund that does not correspond with the request promptly;
Inaccurate details (i.e identity card number, account number etc) provided
by Unit Holders; or
Circumstances beyond the control of the Manager or the Trustee.
Frequency and Minimum Units Redeemed
There is no restriction on the number of times and Units a Unit Holder can redeem.
For partial redemption, the minimum balance of Units remaining in the Fund must
always be two hundred and fifty thousand (250,000) Units or any other amount as
may be determined by the Manager. If the remaining balance of Units is less than
250,000 Units or any other amount as may be determined by the Manager due to
redemption request, the Manager has the right to redeem the entire investment/
close the account of any Unit Holder and forward all the proceeds to the
respective Unit Holder without prior notice.
Minimum
Held
7.3
Units
250,000 Units or such other amount as may be
determined by the Manager from time to time.
Transfer Ownership of Units
Transfer of ownership of Units is not allowed for this Fund save for the account of
the deceased Unit Holder.
Transfer of ownership from the account of the deceased Unit Holder to his/her
personal representative will only be undertaken through the process of estate
administration and death claims procedures.
7.4
Switching between Funds
The switching facility is not available for this Fund.
7.5
Cut-Off Time for Investment and Redemption of Units
The cut-off time for investment shall be at 10.00 a.m. on a Business Day.
The cut-off time for redemption of Units shall be at 4.00 p.m. on a Business Day.
Any applications received before the cut-off time on a Business Day will be
processed on the same Business Day based on the Forward Pricing of the Fund.
Any applications received after the cut-off time on a Business Day will be treated
as having been received on the next Business Day and will be processed on the
next Business Day based on the next Forward Pricing of the Fund.
The above is in accordance with the standards issued by FIMM on the dealing cutoff time.
P a g e | 20
7.6
Income Distribution Policy and Distribution Mode
Subject to the availability of income, the Fund will distribute income to the Unit
Holders on a monthly basis.
Distribution Mode
Distribution would be re-invested or paid to Unit Holders via cheque or credited
into the Unit Holders‟ bank accounts. Unit Holders are required to indicate their
preference in the Unit Application Form upon purchase. In the event that there is
no indication of Unit Holder‟s preference in the Unit Application Form, the
Manager shall re-invest all the distributions received by the Unit Holder/s. There is
no incidental cost associated with the re-investment.
For the purpose of calculation, any amount invested by a Unit Holder at any time,
shall be entitled for distribution whereby the difference in days and price will be
calculated and accounted via distribution equalization.
Distribution will be re-invested or paid to the Unit Holders on the income payment
date (which is within seven (7) Business Days from the distribution declaration date
announced by the Manager). Reinvestment of Units will be based on the NAV per
Unit on the income payment date.
The source of income, if any, for the purpose of distribution shall be derived from
the realized income and/or gain.
7.7
Notice of Cooling-off Period
A cooling-off right refers to the right of the Unit Holder to obtain a refund of his
investment in the Fund if he so requests within the cooling-off period. A cooling-off
right is only given to an investor, other than those listed below, who is investing in
any of the Manager‟s funds for the first time:
(i)
(ii)
(iii)
a corporation or institution;
a staff of the Manager; and
persons registered with a body approved by the SC to deal in unit trusts.
The cooling-off period shall be for a total of six (6) Business Days commencing from
the date the application for Units is received by the Manager.
The refund for every Unit held by the investor pursuant to the exercise of his
cooling-off right shall be the sum of:
(a)
(b)
the NAV per Unit on the day the Units were first purchased; and
the sales charge per Unit originally imposed on the day the Units were first
purchased.
Unit Holders shall be refunded within ten (10) days from receipt of the cooling-off
application.
Investors are advised not to make payment in cash when purchasing Units of the
Fund via any institutional/retail agent.
P a g e | 21
7.8
Unclaimed Monies
Any monies other than unclaimed income distribution payable to Unit Holders
which remain unclaimed for one (1) year will be handled in accordance with the
requirements of the Unclaimed Moneys Act, 1965.
7.9
Anti-Money Laundering Policies and Procedures
The Manager has established this set of policies and procedures to prevent money
laundering activity and to report transactions if it appears to be suspicious, in
compliance with the provision of Anti Money-Laundering and Anti-Terrorism
Financing Act, 2001 (“AMLA”). In view of these, the Manager has the duty to
ensure the following are strictly adhered to:i)
Compliance with laws: the Manager shall ensure that laws and regulations
are adhered, the business is conducted in conformity with high ethical
standards and that service is not provided where there is good reason to
suppose that transactions are associated with money laundering activities;
ii)
Co-operation with law enforcement agencies: The Manager shall cooperate fully with law enforcement agencies. This includes taking
appropriate measures such as disclosure of information by us to the
Financial Intelligent Unit, Bank Negara Malaysia (“FIU”);
iii)
Policies, procedures and training: The Manager shall adopt policies
consistent with the principles set out under the AMLA and ensure that the
staff is informed of these policies and provide adequate training to such
staff on matter provided under the AMLA; and
iv)
Know your customer: The Manager shall obtain satisfactory evidence of
the customer‟s identity and have effective procedure for verifying the
bona fides of the customer.
Subject to any regulatory restrictions, compliance with Malayan Banking Group
policy as well as Mayban Ageas Holdings Group policy on prevention of money
laundering and terrorism financing, the Manager is not liable for Unit Holder‟s loss
resulted from such compliance except in the case of negligence, willful default or
fraud of the Manager or its delegated parties.
7.10
Winding Up of the Fund
The Manager, in accordance with the Deed, reserves the right to wind-up the
Fund should the total NAV of the Fund falls below RM10,000,000 or where the
Manager determines that it is in the best interest of the Unit Holders.
The Manager, upon termination, shall notify the existing Unit Holders of the Fund in
writing of the following options:
(a)
to receive the net cash proceeds derived from the sale of all the investments
of the Fund less any payment for liabilities of the Fund and any cash produce
available for distribution (if any), in proportion to the number of Units held by
the Unit Holders respectively;
P a g e | 22
(b)
to switch to any other funds managed by the Manager upon such terms and
conditions as shall be set out in the written notification; or
(c)
to choose any other alternative as may be proposed by the Manager.
P a g e | 23
(8)
THE MANAGER
8.1
Background Information
The Manager is a member of Malayan Banking Berhad Group (“Maybank
Group”), Malaysia‟s largest financial services group by asset size and market
capitalisation as at 31 December 2011. The Manager was established on 5 March
1997 following the corporatization of the Investment Department of Maybank
Investment Bank Berhad (“MIB”). MIB, which was incorporated on 28 September
1973, is the investment banking arm of the Maybank Group. The Manager is
wholly-owned by Maybank Asset Management Group Berhad (formerly known as
Aseamlease Berhad), a wholly-owned subsidiary of Maybank. The Manager is a
holder of Capital Markets Services Licence under the Act.
The Manager has over 30 years of experience including the period prior to its
corporatization at MIB in managing investments ranging from equities, fixed
income securities, money market instruments to unit trust funds and wholesale
funds mainly on behalf of corporations, institutions, insurance and takaful
companies and individuals. As at LPD, the Manager‟s total assets under
management is approximately RM7.998 billion which includes fourteen (14)
wholesale funds and one (1) unit trust fund. With effect from 14 June 2012, the
Manager had changed its name from Mayban Investment Management Sdn Bhd
to Maybank Asset Management Sdn Bhd.
As at LPD, Maybank AM has staff strength of sixty (60) personnel comprising of fifty
seven (57) executives and three (3) non-executives.
8.2
Functions, Duties and Responsibilities of the Manager
The general functions, duties and responsibilities of the Manager include, but not
limited to, the following:
carrying out and conducting business in a proper and diligent manner and be
responsible for daily sales and management of the Fund and the general
administration of the Fund in accordance with the Deed, the Act and the
relevant guidelines and other applicable laws at all times and acceptable
and efficacious business practices within the industry;
observing high standards of integrity and fair dealing in managing the Fund to
the best and exclusive interest of the Unit Holders; and
acting with due care, skill and diligence in managing the Fund and effectively
employ the resources and procedures necessary for the proper performance
of the Fund.
8.4
Board of Directors of the Manager
The Manager has an experienced Board of Directors with background in the
financial markets. They are responsible for overseeing the activities of the Manager
and the establishment of the Fund‟s policies. Board meetings are held once every
two (2) months or more frequently should the circumstances require.
P a g e | 24
Board of Directors
Datuk Mohaiyani Shamsudin
Mohamed Nor bin Abdul Hamid
Datuk Karownakaran @ Karunakaran a/l Ramasamy
Loh Lee Soon
Datuk Abdul Farid Alias
Nor‟ Azamin bin Salleh
8.5
Key Personnel of the Manager
The profiles of the Manager‟s key personnel are as follows:
Nor’ Azamin bin Salleh
Nor‟ Azamin bin Salleh, a Malaysian, aged 46, was appointed as the Managing
Director/Chief Executive Officer of Maybank AM on 1 October 2010.
He brings with him over 20 years of experience in finance, operations, sales &
marketing and management. He has worked in leading asset management
companies such as Asian Islamic Investment Management Sdn Bhd (“AIIMAN”) - a
subsidiary of DBS Asset Management Pte Ltd, Commerce Asset Fund Managers
and Avenue Invest Berhad. In the past several years, he was actively involved in
the growth of Islamic Investment Management in Malaysia. Prior to joining
Maybank AM, he was the Executive Director/Chief Executive Officer of AIIMAN.
Apart from Maybank AM, his other board memberships within Maybank Group
include Aseamlease Berhad, KE Capital Partners Ptd Ltd and Kim Eng Asset
Management (Thailand) Co. Ltd. He is also a board member of Federation of
Investment Managers Malaysia (FiMM).
He holds a degree in Bachelor of Commerce and Master in Business
Administration. In addition, he is a Chartered Accountant (Malaysia), Certified
Practicing Accountant (Australia) and Certified Financial Planner. He is a holder of
CMSRL.
Badrul Hisyam bin Abu Bakar
Badrul Hisyam bin Abu Bakar, Chief Investment Officer joined Maybank AM on 1
December 2010. He graduated from New York University, United States of America
with a Bachelor of Science, majoring in Finance and Economics in 1996. He brings
with him a 15 years experience working in numerous asset management
companies such as HLG Asset Management Sdn Bhd, Commerce Asset Fund
Managers Sdn Bhd, Avenue Asset Management Sdn Bhd, Tune Money Capital Sdn
Bhd and BIMB Investment Management Berhad. Prior to joining Maybank AM, he
was the Chief Investment Officer of BIMB Investment Management Sdn Bhd. He is
a holder of CMSRL.
Wan Maizuni binti Wan Mohamad
Wan Maizuni binti Wan Mohamad, Head of Compliance, joined Maybank AM in
January 2005. She started as an Organisation & Methods Executive at UMBC
Securities Sdn Bhd in 1996. She then joined RHB Asset Management Sdn Bhd as a
Compliance Officer, and in 2003, she moved to Amanah Raya Berhad to help in
P a g e | 25
setting up Amanah Raya Asset Management Sdn Bhd. She holds a Diploma in
Accountancy from Universiti Teknologi MARA and a Degree in Law (LLB Hons) from
University of East London, United Kingdom. She is a registered Compliance Officer
with the SC.
Christopher Geh
Christopher Geh, Head of Product Development & Distribution, joined Maybank
AM on 2 May 2012.
After graduating in 2001, he worked in the USA with numerous global companies
such as Bank of America and Amazon.com in the areas of accounting and
finance.
He returned to Malaysia in 2002 and worked with SBB Mutual, Hwang DBS,
Prudential Fund Management, AmInvestment Services and RHB Investment
Services, specializing in strategic initiatives, product development and distribution.
He oversees all aspects of product strategy and development for the company. In
addition to that, Chris is responsible for leading, managing and developing the
operational sales plan for the distribution team as well as overseeing the client
servicing team.
He graduated with a Bachelor of Business Administration majoring in finance from
Seattle University, USA. He is a holder of CMSRL.
Wan Khatijah Wan Ahmad
Wan Khatijah Wan Ahmad has been appointed as Head of Finance and
Operations, Maybank AM with effect from 20 March 2013.
Prior to joining Maybank AM, she was the Deputy Head, Investment Accounting
Center of Excellence at AIA Shared Services Sdn Bhd where she was posted to the
head office in Hong Kong for a period of 2 years for integration of investment
systems for the AIA group.
In her fifteen years of experience in leading financial institutions such as AIA
Shared Services Sdn Bhd, CIMB Trustee Berhad and Prudential Assurance Malaysia
Berhad, Wan Khatijah has gained extensive experience in the areas of investment
operations,fund valuation and investment system implementation and integration.
She started at Commerce Asset Fund Managers Sdn Bhd as a Fund Accountant
and was promoted to Operations Manager where she was responsible for the
Fund Accounting and Operations department. During her tenure as a Manager at
CIMB Trustee Berhad, she was managing operational matters for 25 unit trust funds
and 3 real estate investment trust funds.
She graduated from Hull University, England with a BSc in Accounting.
Azmi Bin Mohamed Ariffin
Azmi Bin Mohamed Ariffin, Head, Corporate & Institutions, joined Maybank AM in
July 2004. He served SJ Securities Sdn Bhd as an Executive Institutional Sales in 1998
and PM Securities Sdn Bhd as Manager, Business Development in 2002. He holds a
Bachelor of Science majoring in Finance from Boston University, Massachusetts,
P a g e | 26
United States of America and received his Master in Business Administration from
UiTM Shah Alam. He has had more than 10 years experience in capital market
industry and he is a holder of CMSRL.
The profiles of the designated key investment personnel for the Fund are as follows:
Asnul Badrisyah Morni
Asnul Badrisyah bin Morni, Portfolio Manager, Fixed Income is the designated fund
manager of the Fund. He joined Maybank AM in July 2008 and was officially
promoted to be a fund manager in fixed income securities in January 2012. He
graduated with a Bachelor of Accounting (Hons) from Universiti Tenaga Nasional.
He started off his career in 2001 as an Assistant Research with MIDF Sisma Securities
Sdn Bhd and progressed in covering equity research for 6 years before
broadening his experience into structured product development in Etiqa
Insurance Berhad prior to his appointment as a fund manager in fixed income
securities in Maybank AM. He is a holder of the CMSRL. He is the co-designated
fund manager for this Fund.
Aznil Azim bin Mushtari
Aznil Azim bin Mushtari, Money Market Executive, is the back-up fund manager of
the Fund. He holds a Degree in Actuarial Science from MARA Institute of
Technology. He was attached to the investment department of MAHB since
March 2008, prior to his transfer to Maybank AM in January 2009. Previously, he was
the fund performance executive of Maybank AM. He is currently working with the
money market team to manage all money market funds under management on
behalf of Maybank AM‟s clients. He is a holder of the CMSRL.
8.6
Shariah Advisory Panel
The Shariah Advisory Panel comprises of three (3) Shariah advisers who are
registered with the SC.
Tan Sri Dato’ Seri (Dr) Haji Harussani Haji Zakaria
Tan Sri Dato‟ Seri (Dr) Haji Harussani is the Mufti of the state Government of Perak.
He is currently a member of Islamic Council and Malay Customs of Perak;
Chairman of Shariah Council, Exco Member for the state and is also a member of
the Board of Directors of Islamic Economy Development Corporation.
Tan Sri Dato‟ Seri (Dr) Haji Harussani Haji Zakaria holds a Ph.D from University
Malaya. He sits on various advisory boards. He is currently the Shariah Adviser for
Amanah Raya Berhad and Bank Pembangunan & Infrastructure Malaysia Berhad.
Dr Ismail bin Mohd @ Abu Hassan
Dr Ismail holds a Bachelor Degree in Shariah from University of Malaya, and later
obtained a LL.M from SOAS University of London. He went on to complete his Ph.D
at the University of Manchester, England in 1997.
Dr Ismail has more than ten (10) years‟ experience as a lecturer and currently
holds the post of Assistant Professor, Kulliyah of Laws, International Islamic University
P a g e | 27
Malaysia. He was appointed as Assistant Lecturer, Kulliyah of Laws in November
1989 and was later made Lecturer, Kulliyah of Laws in January 1993.
Dr Mohammad Deen bin Mohd Napiah
Mohammad Deen obtained his B.A. in Shariah Islamic Study from Kuwait University
in 1990. In 1996, he obtained his Ph.D from Glasgow Caledonian University,
Glasgow. His thesis was titled “The Theory of the Contract of Agency (Al-Wakalah)
in Islamic Law”.
He was appointed as HOD, Department of Islamic Law at Ahmad Ibrahim Kulliyyah
of Laws, International Islamic University Malaysia in 1997 and become the Deputy
Dean (Student Affairs) in 2000. He was involved in teaching both at
undergraduates and postgraduate levels. In addition to the above, he is an active
member in several committees at Kulliyyah and University level. He is also
appointed as an Academic Assessor by Lembaga Akreditasi Negara (LAN). He
was a Shariah Advisor to EON Bank Group and ZAR Perunding Pesaka Sdn Bhd. He
is also a Principal of College Uthman ibn Affan, IIUM.
8.7
Roles and Responsibilities of the Shariah Advisory Panel
The roles of a Shariah Advisory Panel include but not limited to the following:
a)
To advise on all aspects of unit trust and fund management business in
accordance with Shariah principles;
b)
To provide Shariah expertise and guidance in all matters, particularly on the
Fund‟s Deed and Info Memo, Fund structure, investments and other
operational matters;
c)
To ensure that the Fund is managed and operated in accordance with
Shariah principles, relevant SC regulations and/or standards, including
resolutions issued by the SC‟s Shariah Advisory Council;
d)
To review the Fund‟s compliance report and investment transaction report to
ensure that the Fund‟s investments are in line with Shariah principles; and
e)
To prepare a report to be included in the Fund‟s annual and quarterly
reports stating its opinion whether the Fund has been operated and
managed in accordance with the Shariah principles for the financial period
concerned.
Where there is ambiguity or uncertainty as to an investment, system, procedure
and/or process, the Manager together with the Shariah Advisory Panel, if
necessary, shall consult the SC.
The Shariah Advisory Panel shall meet with the Manager on a quarterly basis or on
an ad-hoc basis should the need arise.
P a g e | 28
(9)
THE TRUSTEE
9.1
Background Information
OSK Trustees Berhad was incorporated in Malaysia under the Companies Act, 1965
on 6 March 2002. It is registered as a trust company under the Trust Companies
Act, 1949 and is also registered with the SC to conduct unit trust business. The
principal activity of OSK Trustees Berhad is providing retail and corporate trustee
services. OSK Trustees Berhad has been in the trustee business since 2002.
The present authorised share capital of OSK Trustees Berhad is RM25,000,000
comprising 2,500,000 ordinary shares of RM10.00 each, of which 1,200,000 are
currently issued and credited as partially paid-up of RM5.00 each in OSK Trustees
Berhad. The shareholders are as follows:
Shareholders
RHB Capital Berhad*
OSK Investment Bank Berhad (OSKIB)
OSK Nominees (Tempatan) Sdn. Berhad (OSKNT)
OSK Nominees (Asing) Sdn. Berhad (OSKNA)
OSK Futures And Options Sdn. Berhad (OSKFO)
%
20
20
20
20
20
Note:
*Pursuant to a Share Purchase Agreement dated 28 May 2012 between OSK
Holdings Berhad (“OSKH”) and RHB Capital Berhad (“RHBC”) for the disposal by
OSKH of, amongst others, its 20% equity interest in OSK Trustees Berhad to RHBC.
Following the completion of the Share Purchase Agreement on 9 November 2012,
the balance of 80% shareholding in OSK Trustees Berhad will remain with OSKIB,
OSKNT, OSKNA and OSKFO respectively, with its ultimate shareholder being RHBC.
9.2
Experience in Trustee Business
OSK Trustees Berhad undertakes all types of trustee business allowed under the
Trust Companies Act, 1949, ranging from corporate trustee services to retail
services. OSK Trustees Berhad offers corporate trustee services such as trustee for
real estate investment trusts (REITs), unit trust funds, private retirement schemes,
private debt securities and custodian services. Its retail services include estate
planning services (will writing, custodian and executor/trustee services) and
private trustee services (private purpose trust, investment trust, charitable trust,
insurance trust, business succession trust, estate administration trust, custodian and
stakeholder services).
As at LPD, OSK Trustees Berhad is the trustee for sixteen (16) unit trust funds, twenty
(20) wholesale funds and three (3) REITs.
As at LPD, OSK Trustees Berhad‟s staff strength comprises 40 executives and 5 nonexecutive staff.
P a g e | 29
9.3
Board of Directors
The following table sets out information regarding the Board of Directors of the
Trustee:
Name
9.4
Directorship
Foo San Kan
Independent Non-Executive Director
Woo Lai Mei
Dato‟ Nik Mohamed Din bin Datuk Nik Yusoff
Non-Independent Executive Director
Woon Chong Boon
Non-Independent Non-Executive
Director
Haron Bin Datuk Tamby Chik
Independent Non-Executive Director
Non-Independent Non-Executive
Director
Profile of Key Personnel
Woo Lai Mei, Director
Ms Woo holds a Bachelor of Laws (Honours) from The University of Buckingham (UK)
and is a Barrister-of-Law of Lincoln‟s Inn. She was admitted as an advocate and
solicitor of the Supreme Court of Singapore in 1989 and was in private practice at
leading law firms in Singapore including M/s Lee and Lee and M/s Rajah & Tann,
since her admission until 2000. Ms Woo had also served as a Director of Practice
Standards and Special Projects with the Law Society of Singapore for 2 years. She
was admitted as an advocate and solicitor of the High Court of Malaya in 2001
and was in the practice of M/s Zul Rafique & Partners and M/s Raja Darryl and Loh,
before joining the OSK Group of Companies as Associate Director, Group
Corporate and Legal Affairs in 2005. Prior to joining OSK Trustees Berhad, she
headed the OSK Group‟s legal team which provides legal counsel and general
corporate advisory to the Board of Directors and the Group‟s subsidiaries (both
local and regional) and its business and support units. She is currently the Executive
Director/Chief Operating Officer of OSK Trustees Berhad and Executive Director of
Malaysian Trustees Berhad.
Yap Kuan Yee, Senior Vice President, Head of Unit Trust
Ms Yap joined OSK Trustees Berhad in November 2011. She is a Fellow Member of
the Association of Chartered Certified Accountants and a member of the
Malaysian Institute of Accountants. She has more than 15 years of experience
handling finance & operations matters in the financial services industry, specifically
in banking, fund management, unit trust & futures broking. Her primary
responsibility at OSK Trustees is to lead and manage the Unit Trust‟s operations and
administration.
Sazali Alias, Vice President, Compliance/Internal Process
Mr. Sazali holds a Bachelor of Arts in Business Administration (Marketing) from
Benedictine College, Kansas, USA, and Diploma in Business Studies from University
MARA Institute of Technology (UiTM).
He has 12 years experience in financial services industries encompassing hands on
experience in day to day operations of nominees, trusteeship services such as unit
trust funds, clubs, real estate investment trust and private debt securities. He was a
Compliance Manager with AmTrustee Berhad (AmTB). Prior to AmTB, he was an
Assistant Vice President in ABB Trustee Berhad (ABBT) and headed ABBT‟s Finance
P a g e | 30
& Operations Units. He is currently with OSK Trustees Berhad, and his scope of work
includes compliance and business process flow of the Company.
9.5
Duties and Responsibilities of the Trustee
The Trustee‟s functions, duties and responsibilities are set out in the Deed. The
general function, duties and responsibility of the Trustee include, but are not
limited to, the following:
(a)
(b)
(c)
Acting as trustee and safeguarding the rights and interests of the Unit
Holders;
Holding the assets of the Fund for the benefit of the Unit Holders; and
Exercising all the powers of a trustee and the powers that are incidental to
the ownership of the assets of the Fund.
The Trustee has covenanted in the Deed that it will exercise all due diligence and
vigilance in carrying out its functions and duties, and in safeguarding the rights
and interests of Unit Holders.
9.6
Trustee’s Statement of Responsibility
OSK Trustees Berhad has given its willingness to assume the position as Trustee of
the Fund and all the obligations in accordance with the Deed, the Guidelines,
securities laws and other relevant law, and also its willingness to provide indemnity
to the Manager for the benefit of the Unit Holders of the Fund for any loss incurred
as a result of any non-performance of the Trustee.
9.7
Trustee’s Declaration
OSK Trustees Berhad is independent of the Manager. The Trustee will carry out
transactions on an arm‟s length basis and on terms which are best available to the
Fund, as well as act at all times in the best interest of the Unit Holders. The Trustee
also has adequate procedures and processes in place to prevent or control
conflicts of interest.
OSK Trustees Berhad‟s Board of Directors declare that the requirements of the
guidelines on allowing a person to be appointed or to act as trustee under
subsection 290(1) of the Capital Markets and Services Act 2007 have been
complied with at the point of application.
9.8
Trustee’s Delegate
The Trustee has appointed Malayan Banking Berhad as the custodian of the
quoted and unquoted investments of the Fund. The custody services provided by
the custodian include settlement and clearing, safekeeping, corporate events
monitoring and processing, income collection, reporting on securities and cash
portfolio management. 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 instructions from its principal, OSK Trustees Berhad.
P a g e | 31
(10) SALIENT TERMS OF THE DEED
10.1
Rights of Unit Holders
As a Unit Holder of the Fund, you have the right, amongst others, to the following:
(i)
(ii)
(iii)
(iv)
(v)
(vi)
(vii)
receive income distribution of the Fund (if any);
to have Units repurchased by the Manager;
participate in termination or winding up of the Fund;
call, attend and vote at the Unit Holders‟ meetings (if any);
receive a statement of the audited account of the Fund for each year;
receive a statement of investment for Units; and
receive annual reports, interim reports or any other reports in relation to the
Fund.
A person is deemed to be a Unit Holder of the Fund upon the Manager accepting
a complete application form with payment and when Units of the Fund are issued
to him/her.
Units held in the Fund would entitle the Unit Holders to an equal and proportionate
beneficial interest in the Fund. However, Unit Holders do not own or have a right to
any particular asset held by the Fund and cannot participate in management
decisions of the Manager.
10.2
Liabilities and Limitation 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:
(i)
(ii)
A Unit Holder would not be liable for nor would an Unit Holder be required to
pay any amount in addition to the payment for Units of the Fund as set out in
this Info Memo and the Deed; and
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.
A Unit Holder cannot:
(i)
(ii)
10.3
Interfere with any rights or powers of the Manager and/or Trustee under the
Deed; and
Require the investments or assets of the Fund to be transferred to the Unit
Holder.
Power to Call for a Meeting
Unit Holders of the Fund shall have the right to call for a Unit Holders‟ meeting
subject to satisfying all of the following conditions:(a)
The call for a meeting is made by not less than fifty (50) or one-tenth (1/10) of
all the Unit Holders, whichever is less;
P a g e | 32
(b)
(c)
The call for a meeting is in writing and given to the Manager at its registered
office; and
The Unit Holders may apply to the Manager to summon a meeting for any
purpose including, without limitation, for the purpose of:i)
ii)
iii)
iv)
requiring the retirement or removal of the Manager;
requiring the retirement or removal of the Trustee;
considering the most recent financial statements of the Fund; or
giving to the Trustee such directions as the meeting thinks proper.
The Manager shall give notice 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, of the time and venue of the meeting by sending via post, a
notice of the proposed meeting at least seven (7) days before the date of the
proposed meeting. The notice shall be sent to the last known addresses of each
Unit Holder and any joint Unit Holders whose name stands first in the records of the
Manager.
The Manager may appoint a person to chair a meeting of Unit Holders of the Fund
upon consultation with all Unit Holders present at the meeting.
For full details of the rights of a registered Unit Holder of the Fund, please refer to
the Deed.
P a g e | 33
(11) COMMUNICATION WITH UNIT HOLDERS
11.1
Statement of Accounts
A Unit Holder‟s statement showing details of the amount invested in the Fund shall
be made available to the Unit Holders on a monthly basis, twenty one (21) days
after every month‟s end.
11.2
Unit Price
Unit Holders will be able to obtain the Unit price of the Fund from
www.maybank2u.com.my.
11.3
Financial Reports
The Manager will provide Unit Holders with an annual report within two (2) months
of the Fund‟s financial year-end and quarterly reports within two (2) months of the
end of the period covered. A financial statement audited by the Fund‟s
appointed auditors will be included in the annual report. The Trustee will prepare a
report to Unit Holders in the annual report stating its opinion on the conduct of the
Manager, in particular whether the Manager had managed the Fund in
accordance with the limitation on its investment powers as set out in the Deed
and whether the Manager had acted in accordance with the Deed and
Guidelines.
The quarterly and annual reports shall provide Unit Holders with a regular snapshot
of the key risk factors faced by the Fund and the Fund‟s investment outlook for
that reporting period. They are to contain, inter alia, the Fund‟s financial
performance, market outlook, changes in key investment team, illiquid holdings,
details on portfolio exposure and information on the Fund performance and
volatility, whichever is applicable.
11.4
Customer Information Service
Unit Holders can seek assistance on any issue relating to the Fund, from the
Manager‟s client servicing personnel at Maybank AM‟s office at 03 2297 7888 (ext.
7806/ 7923) from 8.45 am to 5.45 pm on any Business Day. Alternatively, Unit
Holders may e-mail their enquiries to enquiries@maybank-am.com.
P a g e | 34
(12) TAX ADVISER’S LETTER
TAXATION ADVISER‟S LETTER IN RESPECT OF THE TAXATION
OF THE WHOLESALE FUND AND THE UNIT HOLDERS
(PREPARED FOR INCLUSION IN THIS INFORMATION MEMORANDUM)
Ernst & Young Tax Consultants Sdn Bhd
Level 23A, Menara Milenium
Pusat Bandar Damansara
50490 Kuala Lumpur
The Board of Directors
Mayban Investment Management Sdn Bhd
Level 19, Tower C
Dataran Maybank
No.1, Jalan Maarof
59000 Kuala Lumpur
Dear Sirs
Taxation of the unit trust and unit holders
This letter has been prepared for inclusion in this Information Memorandum dated 7 May
2013 in connection with the offer of units in the unit trust known as Maybank Institutional
Islamic Money Market Fund (hereinafter referred to as “the Fund”).
The purpose of this letter is to provide prospective unit holders with an overview of the
impact of taxation on the Fund and the unit holders.
Taxation of the Fund
The taxation of the Fund is subject to the provisions of the Malaysian Income Tax Act, 1967
(“MITA”), particularly Sections 61 and 63B.
Under Section 2(7) of the MITA, any reference to interest shall apply, mutatis mutandis, to
gains or profits received and expenses incurred, in lieu of interest, in transactions
conducted in accordance with the principles of Syariah.
The effect of this is that any gains or profits received (hereinafter referred to as “profits”)
and expenses incurred, in lieu of interest, in transactions conducted in accordance with
the principles of Syariah, will be accorded the same tax treatment as if they were interest.
Subject to certain exemptions, the income of the Fund comprising dividends, profits and
other investment income derived from or accruing in Malaysia after deducting tax
allowable expenses, is subject to Malaysian income tax, which is currently imposed at the
rate of 25%.
Tax allowable expenses would comprise expenses falling under Section 33(1) and Section
63B of the MITA. Section 33(1) permits a deduction for expenses that are wholly and
exclusively incurred in the production of gross income. In addition, Section 63B allows unit
trusts a deduction for a portion of other expenses (referred to as „permitted expenses‟)
not directly related to the production of income, as explained below.
P a g e | 35
“Permitted expenses” refer to the following expenses incurred by the Fund which are not
deductible under Section 33(1) of the MITA:
the manager's remuneration,
maintenance of the register of unit holders,
share registration expenses,
secretarial, audit and accounting fees, telephone charges, printing and stationery
costs and postage.
These expenses are given a partial deduction under Section 63B of the MITA, based on
the following formula:
A x
where
A
B
C
B
4C
is the total of the permitted expenses incurred for that basis period;
is gross income consisting of dividend1, interest and rent chargeable to tax
for that basis period; and
is the aggregate of the gross income consisting of dividend 1 (whether
exempt or not), interest and rent, and gains made from the realisation of
investments (whether chargeable to tax or not) for that basis period,
provided that the amount of deduction to be made shall not be less than
10% of the total permitted expenses incurred for that basis period.
Exempt income
The following income of the Fund is exempt from income tax:
Dividends
Tax exempt dividends received from investments in companies which had
previously enjoyed or are currently enjoying certain tax incentives provided under
the relevant legislation.
Paragraph 12B, Schedule 6 of MITA states that exempt dividend includes any
dividend paid, credited or distributed to any person where the company paying
such dividend is not entitled to deduct tax under Section 108 of MITA.
Interest (Profits)
1
(i)
interest from securities or bonds issued or guaranteed by the Government of
Malaysia;
(ii)
interest from debentures or Islamic securities, (other than convertible loan
stock) approved by the Securities Commission;
(iii)
interest from Bon Simpanan Malaysia issued by Bank Negara Malaysia;
(iv)
interest derived from Malaysia and paid or credited by banks or financial
institutions licensed under the Banking and Financial Institutions Act 1989 or
the Islamic Banking Act 1983;
As proposed in the Finance (No.2) Bill 2010, with effect from the year of assessment
2011, dividend income is deemed to include income distributed by a unit trust which
includes distributions from Real Estate Investment Trusts.
P a g e | 36
(v)
interest from Islamic securities originating from Malaysia, other than
convertible loan stock issued in any currency in Malaysia and approved by
Securities Commission or Labuan Offshore Financial Services Authority
(LOFSA)2
(vi)
interest received from bonds or securities issued by Pengurusan Danaharta
Nasional Berhad; and
(vii)
interest derived from bonds (other than convertible loan stock) paid or
credited by any company listed on the Malaysian Exchange of Securities
Dealing and Automated Quotation Berhad (MESDAQ) 3.
Discount
Tax exemption is given on discount paid or credited to any unit trust in respect of
investments as specified in items (i), (ii) and (iii) above.
Foreign income
Dividends, profits and other income derived from sources outside Malaysia and received
in Malaysia by a resident unit trust is exempt from Malaysian income tax. However, such
income may be subject to tax in the country from which it is derived.
Gains from the realisation of investments
Pursuant to Section 61(1) (b) of the MITA, gains from the realisation of investments will not
be treated as income of the Fund and hence, are not subject to income tax. Such gains
may be subject to real property gains tax ("RPGT") under the Real Property Gains Tax Act,
1976 (“RPGT Act”), if the gains are derived from the sale of chargeable assets, as defined
in the RPGT Act. Any chargeable gain on the disposal of chargeable assets from 1
January 2010 onwards would be subject to RPGT at the applicable tax rate depending
on the holding period. However, under the Real Property Gains Tax (Exemption) (No.2)
Order 2009, Fund can enjoy a full exemption from RPGT on disposals of chargeable assets
held more than 5 years and an effective tax rate of 5% for all disposals of chargeable
assets which are held for 5 years or less.
Tax credit
Tax deducted at source from Malaysian dividends received by the Fund will be available
for set-off either wholly or partly against the tax liability of the Fund. Should the tax
deducted at source exceed the tax liability of the Fund, the excess is refundable to the
Fund.4
As proposed in the Finance (No. 2) Bill 2010, with effect from 11 February 2010, „LOFSA‟ refers to
Labuan Financial Services Authority (LFSA).
3 MESDAQ was replaced by FTSE Bursa Malaysia ACE with effect from 3 August 2009, therefore any
interest derived from bonds (other than convertible loan stock) paid or credited by any company
listed on the MESDAQ should still qualify for an exemption up to 2 August 2009. However, from 3
August 2009 and up to the date of this letter, there is no new gazette order issued to exempt interest
derived from bonds paid or credited by a company listed in the new FTSE Bursa Malaysia ACE.
4 Pursuant to Section 51 of the Finance Act 2007, a person is not entitled for a set-off if the shares are
held for less than 90 days or the dividend is not derived from ordinary shares. This prohibition is not
applicable for shares in a company listed on the Bursa Malaysia. Further, Section 50 of Finance Act
2009 indicates that a person is not entitled to a set-off if the dividend paid to that person is not in
cash.
2
P a g e | 37
Taxation of unit holders
For Malaysian income tax purposes, unit holders will be taxed on their share of the
distributions received from the Fund.
The income of unit holders from their investment in the Fund broadly falls under the
following categories:
1.
taxable distributions; and
2.
non-taxable and exempt distributions.
In addition, unit holders may also realise a gain from the sale of units.
The tax implications of each of the above categories are explained below:
1.
Taxable distributions
Distributions received from the Fund will have to be grossed up to take into account
the underlying tax paid by the Fund and the unit holder will be taxed on the grossed
up amount.
Such distributions carry a tax credit, which will be available for set-off against any
Malaysian income tax payable by the unit holder. Should the tax deducted at
source exceed the tax liability of the unit holder, the excess is refundable to the unit
holder.
Distributions received by a non-resident unit holder from income which has been
taxed at source at 25%, will not be subject to any further income tax in Malaysia.
Please refer to the paragraph below for the income tax rates applicable to the
grossed up distributions.
2.
Non-taxable and exempt distributions
Tax exempt distributions made out of gains from the realisation of investments and
other exempt income earned by the Fund will not be subject to Malaysian tax in the
hands of the unit holders.
Rates of tax
The Malaysian income tax chargeable on the unit holders depends on their tax residence
status and whether they are individuals, corporations or trust bodies. The income tax rates
charged are as follows:
P a g e | 38
Unit holders
Malaysian income tax rates
Malaysian tax resident:
Individual and non-corporate unit holders
(such as co-operatives, associations and
societies)
Trust bodies
Progressive tax rates ranging from
0% to 26%
25%
Corporate unit holders
(i)
A company with paid up capital in
respect of ordinary shares of not
more than RM2.5 million (at the
beginning of the basis period for the
year of assessment)
(ii)
Companies other than (i) above
For every first RM500,000 of
chargeable income @ 20%5
Chargeable income in excess of
RM500,000 @ 25%
25%
Non-Malaysian tax resident (Note):
Individual and non-corporate unit holders
26%
Corporate unit holders and trust bodies
25%
Note:
Non-resident unit holders may be subject to tax in their respective countries depending
on the provisions of the tax legislation in the respective countries and any existing double
taxation arrangements with Malaysia.
5
A company would not be eligible for the 20% tax rate on the first RM500,000 of chargeable
income if:a) more than 50% of the paid up capital in respect of the ordinary shares of the company is
directly or indirectly owned by a related company which has a paid up capital in respect of
ordinary shares of more than RM2.5 million at the beginning of a basis period for a year of
assessment;
b) the company owns directly or indirectly more than 50% of the paid up capital in respect of
the ordinary shares of a related company which has a paid up capital in respect of ordinary
shares of more than RM2.5 million at the beginning of a basis period for a year of assessment;
c) more than 50% of the paid up capital in respect of the ordinary shares of the company and a
related company which has a paid up capital in respect of ordinary shares of more than
RM2.5 million at the beginning of a basis period for a year of assessment is directly or indirectly
owned by another company.
P a g e | 39
Gains from sale of units
Gains arising from the realisation of investments will not be subject to income tax in the
hands of unit holders unless they are insurance companies, financial institutions or traders/
dealers in securities.
Unit splits and reinvestment of distributions
Unit holders may also receive new units as a result of unit splits or may choose to reinvest
their distributions. The income tax implications of these are as follows:
Unit splits – new units issued by the Fund pursuant to a unit split will not be subject to
income tax in the hands of the unit holders.
Reinvestment of distributions – unit holders may choose to reinvest their income
distribution in new units by informing the Manager. In this event, the unit holder will be
deemed to have received the distribution and reinvested it with the Fund.
**********************************************
We hereby confirm that, as at the date of this letter, the statements made in this report
correctly reflect our understanding of the tax position under current Malaysian tax
legislation and the related interpretation and practice thereof, all of which are subject to
change, possibly on a retrospective basis. We have not been retained (unless specifically
instructed hereafter), nor are we obligated to monitor or update the statements for future
conditions that may affect these statements.
The statements made in this letter are not intended to be a complete analysis of the tax
consequences relating to an investor in the Fund. As the particular circumstances of
each investor may differ, we recommend that investors obtain independent advice on
the tax issues associated with an investment in the Fund.
Yours faithfully
Ernst & Young Tax Consultants Sdn Bhd
Bernard Yap
Partner
Ernst & Young Tax Consultants Sdn. Bhd. has given its consent to the inclusion of the
Taxation Adviser‟s Letter in the form and context in which it appears in this Prospectus and
has not withdrawn such consent prior to the delivery of a copy of this Prospectus for
approval.
INFORMATION MEMORANDUM
Maybank Asset Management Sdn. Bhd. (421779-M)
Level 12, Tower C, Dataran Maybank,
No.1, Jalan Maarof, 59000 Kuala Lumpur, Malaysia
Telephone +603 2297 7888
Facsimile +603 2297 7998
www.maybank-am.com
MAYBANK
INSTITUTIONAL
ISLAMIC MONEY MARKET
FUND (MIIMM)
(Constituted by way of deed on 19 October 2012)
Launch date: 7 May 2013
Manager : Maybank Asset Management Sdn. Bhd.
Trustee : OSK Trustees Berhad
(421779-M)
(573019-U)
INVESTORS ARE ADVISED TO READ AND UNDERSTAND THE CONTENT OF THIS INFORMATION MEMORANDUM. IF IN DOUBT, PLEASE CONSULT
A PROFESSIONAL ADVISER.