AMB ETHICAL TRUST FUND
RESPONSIBILITY STATEMENT
This Product Highlights Sheet has been reviewed and approved by the directors or
authorised committee or persons approved by the Board of Amanah Mutual Berhad and
they collectively and individually accept full responsibility for the accuracy of the
information. Having made all reasonable enquiries, they confirm to the best of their
knowledge and belief, there are no false or misleading statements, or omission of other
facts which would make any statement in the Product Highlights Sheet false or misleading.
STATEMENTS OF DISCLAIMER
The Securities Commission Malaysia has authorised the issuance of AMB Ethical Trust Fund
and a copy of this Product Highlights Sheet has been lodged with the Securities Commission
Malaysia.
The authorisation of AMB Ethical Trust Fund and lodgement of this Product Highlights Sheet
should not be taken to indicate that the Securities Commission Malaysia recommends AMB
Ethical Trust Fund or assumes responsibility for the correctness of any statement made or
opinion or report expressed in this Product Highlights Sheet.
The Securities Commission Malaysia is not liable for any non-disclosure on the part of the
Management Company responsible for AMB Ethical Trust Fund and takes no responsibility for
the contents of this Product Highlights Sheet. The Securities Commission Malaysia makes no
representation on the accuracy or completeness of this Product Highlights Sheet, and
expressly disclaims any liability whatsoever arising from, or in reliance upon the whole or any
part of its contents.
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Updated as at May 2014
This Product Highlight Sheet only highlights the key features and risks of this unlisted capital
market product. Investors are KEY
advised
to request,
read and understand the disclosure
PRODUCT
FEATURES
documents before deciding to invest.
PRODUCT HIGHLIGHTS SHEET
PRODUCT NAME: AMB ETHICAL TRUST FUND (AMBETF)
BRIEF INFORMATION ON THE FUND
AMB Ethical Trust Fund (AMBETF) is managed by Amanah Mutual Berhad (AMB).It is an open-ended equity fund
that consists of longterm investment in equities, bonds and cash that comply to ethical principles. Therefore, the
Fund does not provide capital protection or capital guarantee.
The Fund’s primary objective is to provide investors with income and capital growth for medium to long term
through investments that comply with ethical principles.
PRODUCT SUITABILITY
The fund is suitable for investors who: Desire income and capital returns from the equity and bond markets.
 Would like to channel their resources to companies that demonstrate socially responsible practices relating
to the environment and community.
KEY PRODUCT FEATURES
Investment policy and strategy
1) The diagram below displays the investment
policy practiced by the AMBETF:COMPANIES LISTED ON THE
BURSA MALAYSIA
PERFORMANCE FILTER
NEGATIVE FILTER TO REMOVE
INAPPROPRIATE INVESTMENTS; Principal business in the promotion of
gaming, tobacco and alcohol
Investment approach combines a macroeconomic and
market analysis top-down approach to decide on strategic
asset allocation with a rigorous bottom-up approach for
stock selection which will emphasise on value and growth
potential of the stocks.
Macro economic
analysis
Monitor and assess
investment environment to
identify emerging investment
trends and themes
Strategic asset
allocation
Stock selection
POSITIVE FILTER;
- Enviromentally friendly
– Promote healthy social values
-Good corporate governmance
Portfolio
construction
 Fundamental analysis;
 Valuation screen for
growth, value, momentum
and quality; and
 Liquidity and market
capitalisation
consideration
IDENTIFY SUITABLE COMPANIES
FOR INVESTMENT PURPOSES
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Updated as at May 2014
Base currency
MYR (Malaysian Ringgit)
Launch date
7th January 2003
Financial year end
31st August
Domicile
Malaysia
Registration
Securities Commission Malaysia
Asset allocation
Benchmark
Distribution policy
Manager
Trustee
 70% - 98% in equities
 2% - 30% in cash or bonds (or a combination of both)
80% FBM EMAS Shariah Index + 20% KL Finance Index
Income (if any) is expected to be distributed at the Manager’s
discretion, subject to the approval from the Trustee.
Amanah Mutual Berhad (195414-U)
HSBC (Malaysia) Trustee Berhad (001281-T)
Auditors
 Tun Ahmad Sarji bin Abdul Hamid
 Tan Sri Dato’ Sri Hamad Kama Piah bin Che Othman
 Tan Sri Dato’ Dr. Wan Mohd. Zahid bin Mohd. Noordin
 Tan Sri Dato’ Md. Desa bin Pachi
 Dato’ Idris bin Kechot
 Tun Ahmad Sarji bin Abdul Hamid
 Tan Sri Dato’ Dr. Wan Mohd. Zahid bin Mohd. Noordin
 Tan Sri Dato’ Md. Desa bin Pachi
 Dato’ Idris bin Kechot
UOB Asset Management (Malaysia) Berhad (formerly known as
UOB-OSK Asset Management Sdn Bhd) (219478-X)
Messrs. Ernst & Young (AF:0039)
Tax advisor
Ernst & Young Tax Consultant Sdn Bhd (179793-K)
Solicitors
Messrs. Zainal Abidin & Co.
Board of directors
Investment Committee Members (ICM)
External Investment Managers (EIM)
The Fund’s investment strategy does include temporary defensive positions to protect investor from significant
losses.
The EIM, upon approval from ICM of AMBETF, will execute temporary defensive positions in dealing with adverse
market conditions, unstable economic situation, political upheaval and other external factors affecting market. In
this regard, the Fund may hold cash at higher level than what is prescribed in the asset allocation. It may also
invest into cash equivalent instruments as the main asset of the Fund to maintain low volatility.
When there is excessive gains during best market scenario, AMBETF shall realise as much profits from the portfolio
holdings. This will be reflected as income to the Fund. With that higher income distribution can be declared.
KEY RISKS
General Risk
1.
2.
3.
4.
5.
Market risk
Non-compliance risk
Inflation risk
Liquidity risk
Fund management risk
6.
7.
8.
9.
Operational risk
Returns not guaranteed
Loan financing risk
Force majeure risk
(Source : Master Prospectus for Conventional Fund – Section 4)
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Updated as at May 2014
Potential risks associated with AMBETF
As the Fund invests only in securities of companies which comply with the ethical principles, certain securities
which may provide better growth potential but do not comply with the ethical principles are therefore excluded in
the portfolio. Hence, the returns of the Fund may be limited when compared to a Fund that has no investment
restrictions. Other risks associated with the Fund are as below: Individual equity risk
AMBETF is subject to the volatility of prices in the share market. The volatility of prices in each stock will affect the
Fund’s value daily. The performance of individual stocks, which make up the portfolio, will fluctuate according to
changes in the market value of the investments. The fluctuations can be significant in the short-term. This accounts
for the market risk when investing in this Fund. However, this impact is minimised through portfolio diversification.
Credit risk
AMBETF invests in fixed income securities, so its portfolio is subject to credit risk. This is the risk that the issuer of
the security may default and not be able to make timely principal and interest payments on the security. The lowerrated corporate debt securities will normally have greater risk of defaults.
Interest rate risk
Fixed income securities are particularly sensitive to movements in interest rates. When interest rates rise, the value
of fixed income securities falls and vice versa, thus affecting the NAV of the Fund. Furthermore, fixed income
securities with longer maturity and lower yield coupon rates are more susceptible to interest rate movements.
FEES & CHARGES
Direct fee & charges
Fee & Charges
Percentage (%)
*Sales charge
Up to 6.5
EPF Sales Charge
3.0
Repurchase Charge
Nil
** Annual Management Fee
1.50
**Annual Trustee Fee
***0.08 of NAV
*The sales charge above is negotiable, subject to Manager discretion
** Annual management fee and annual trustee fee are calculated as the percentage of the NAV of the Fund,
calculated on a daily basis before deducting the fees for the day.
***Subject to a minimum fee of RM18,000 per annum calculated on a daily basis.
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Updated as at May 2014
Table for switching charges for AMBETF(Equity) to other funds of AMB
Switching
charges
The charges for switching are set out below:
To target fund
Equity
Bond/Sukuk
Balance
Money
Up to 5% of
amount
switched
MYR25 per
transaction
Up to 1% of
amount
switched
Nil
Switching from
AMBETF
Distribution units of conventional funds cannot be switched into Shariah funds as it is not
permitted under the Shariah perspective. However the principal amount of conventional funds
is allowed to be switched into Shariah funds.
Note:
The above table is applicable for all switching transactions, except where the sales charge of the fund to
be switched into is equal or lower than the sales charge of the fund switched from, in which case the
switching fee shall be RM25 only.
Other annual operating expenses
The auditor’s fees, tax agents’ fee and other relevant professional fees; the costs of printing and distribution of
annual and interim reports, tax vouchers and warrants; cost of modification of the Deed other than those for the
benefit of the Manager and/or Trustee; and other notices to Unit Holders as well as expenses that are directly
related and necessary for the administration of the Fund as set out in the Deed.
These costs have been factored into the quoted NAV per Unit as they are related and necessary to the business
of the Fund.
VALUATIONS AND EXITING FROM INVESTMENT
The valuation of Units is based on the NAV of the Fund and is calculated at the end of the Business Day.
The NAV per unit of AMBETF is available on our website (www.ambmutual.com.my), AMB’s office or any
Distribution Channels.
1. Pricing of units
The Manager adopts the single pricing policy in calculating your investment. Single pricing equates to prices quoted
and transacted on a single price.
The price of Units is computed on a Forward Pricing basis. As such, Units of the Fund are transacted at the NAV
per Unit at the next Valuation Point after receipt of the transaction request and acceptance by the Manager.
Consequently, any changes in the underlying assets of the Fund will cause its Unit prices to vary.
2. Procedure to Repurchase Units
Repurchase of Units can also be made in part or entirety at any time by completing the repurchase form, which
can be obtained at AMB’s office or any Distribution Channels. Below are the required documents/forms to be
submitted to repurchase Units:
(a) Individual investor (single or joint applicants)
i. Completed repurchase form.
ii. Photocopy of identity card, birth certificate (if joint applicant is a minor) or passport (if necessary).
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Updated as at May 2014
(b) Corporate investor
i. Completed repurchase form.
ii. Board resolution or any other necessary authorisation (if necessary).
Partial repurchase of Units is permitted provided the applicable minimum holding is maintained for the Fund. There
is no restriction on frequency of repurchase and number of Units a Unit Holder can redeem subject to the applicable
minimum holding.
The Manager may elect not to permit a partial repurchase if the effect thereof would be that the Unit Holder holds
less than the minimum holding applicable.
3. Payment for Repurchase of Units
(a) By cheque
Unit Holders will receive withdrawal proceeds payment by cheque payable to the Unit Holder's or jointholders'
names only. The cheques will be mailed to the address of the Unit Holders based on the application form or as
may be subsequently notified in writing to the Manager.
Any charges incurred such as charges for outstation cheque will be borne by the Unit Holders.
(b) Transfer to a bank account
Unit Holders may give AMB an instruction in writing to transfer the repurchase proceeds to Unit Holders' nominated
local bank account held in Unit Holders' own name. All bank charges for the transfer will be borne by the Unit
Holders. The charge will be deducted from the repurchase amount before being paid to the Unit Holders relevant
bank account.
Unit Holders are required to provide AMB with the relevant bank account details in order for AMB to proceed with
the transfer request. It is possible for delays in the banking system to occur which are beyond our control. If the
funds cannot be transferred, AMB shall draw a cheque payable to the Unit Holders.
Unit Holders may give AMB instruction in writing to transfer the repurchase proceeds to the Unit Holders' nominated
bank account overseas held in Unit Holders' own name. All bank charges for the transfer will be borne by the Unit
Holders. The charge will be deducted from the repurchase amount before being paid to the Unit Holders’ relevant
bank account.
Note: No repurchase proceeds will be paid in cash under any circumstances.
4. Unit Pricing & Cut-off Time for Repurchase of Units
Applications to repurchase Units will be processed on the same Business Day if received by 2.30 p.m. The
applicable repurchase price would be based on the NAV per Unit at the end of the Business Day on which the
application to purchase is received by the Manager. Any application received or deemed to have been received
after this cut-off time would be considered as being transacted on the next Business Day and would be subjected
to the Manager’s pricing on the next Business Day.
The Manager will pay the net repurchase proceeds to the Unit Holder or the Unit Holder’s EPF account (where
applicable) within 10 days from the receipt of the request to repurchase provided that all documentation are
complete.
In the event of any technical difficulties beyond the Manager’s control or should the redemption request result in
the sale of assets which cannot be liquidated at an appropriate price or on adequate terms and is as such not in
the interest of the existing Unit Holders, redemption monies may be paid at such other period as may be permitted
by the relevant authorities from time to time.
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Updated as at May 2014
CONTACT INFORMATION
1. For any enquires and / or complaint (internal dispute resolution), you may contact:
(a)
AMB Client Services via
Tel : +603-2034 0800
Fax : +603-2162 5958 / +603-2163 3212
Email : ambcare@pnb.com.my
Or you may also file your dispute at our premise:
Amanah Mutual Berhad
34th Floor Menara PNB
201-A Jalan Tun Razak
50400 Kuala Lumpur
(b)
Distribution Channels
Please refer to Section 20 of the Master Prospectus for Conventional Fund for details on the
appointed Distribution Channels.
Alternatively, you may also visit AMB’s website at www.ambmutual.com.my
2. If you are dissatisfied with the outcome of the internal dispute resolution process, please refer your dispute to
the Securities Industries Dispute Resolution Corporation (SIDREC):
(a)
(b)
(c)
(d)
via phone to
via fax to
via email to
via letter to
: +603-2282 2280
: +603-2282-3855
: info@sidrec.com.my
: Securities Industry Dispute Resolution Center (SIDREC)
Unit A-9-1, Level 9, Tower A
Menara UOA Bangsar
No. 5, Jalan Bangsar Utama 1
59000 Kuala Lumpur
3. You can also direct your complaint to the Securities Commission even if you have initiated a dispute resolution
process with SIDREC. To make a complaint, please contact the SC’s Investor Affairs & Complaints
Department:
(a)
(b)
(c)
(d)
(e)
via phone to the Aduan Hotline at : +603-6204 8999
via fax to
: +603-6204 8991
via e-mail to
: aduan@seccom.com.my
via online complaint form available at www.sc.com.my
via letter to
: Investor Affairs & Complaints Department
Securities Commission Malaysia
3 Persiaran Bukit Kiara
Bukit Kiara
50490 Kuala Lumpur
APPENDIX : GLOSSARY
“AMB” or “Manager”
Amanah Mutual Berhad (195414-U).
“AMBETF” or “ the Fund”
AMB Ethical Trust Fund
“Bursa Malaysia”
The Malaysian stock exchange, operated and maintained by Bursa Malaysia
Securities Berhad (635998-W).
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Updated as at May 2014
“Currency”
The base currency of the Fund i.e MYR (Malaysian Ringgit)
“Business Day(s)”
A day on which the Bursa Malaysia is open for trading in securities.
“Deed”
The deed including any supplementary deed between the Manager, the Trustee
and the Unit Holders for the Fund.
“Distribution Channel”
An institution, corporation or an organisation that is appointed by AMB for the
purpose of marketing and distributing the Fund inside and outside Malaysia as
allowed by the applicable laws. Details are provided in Master Prospectus for
Conventional Funds.
“Ethical Panel of Advisors”
The Panel of Advisor appointed by the Manager for AMBETF
“EPF”
Employees Provident Fund.
“External Investment
Manager” or “EIM”
The external investment manager of the fund, UOB Asset Management
(Malaysia) Berhad (formerly known as UOB-OSK Asset Management Sdn Bhd)
(219478-X)
“Forward Pricing”
The price of a Unit that is the NAV per Unit calculated at the next Valuation Point
after an instruction or a request is received.
“FBM EMAS Index”
FTSE Bursa Malaysia EMAS Index
“Investment Committee” or
“IC”
The investment committee of the Fund which is primarily responsible for
formulating, implementing and monitoring the investment management
strategies of the Fund in accordance with the investment objectives of the Fund.
“Liquid Assets”
Financial assets with characteristics including, but not limited to, the following:
(i) easily convertible in large sums into cash at short notice;
(ii) low counter –party credit risks; and
(iii) have sufficiently deep secondary market which continues to exist during
tight liquidity situations.
(Source: Bank Negara Malaysia Liquidity Framework 1998)
“NAV”
Net asset value.
“NAV of the Fund”
The NAV of the Fund is determined by deducting the value of all the Fund’s
liabilities from the value of all the Fund’s assets, at the Valuation Point. For the
purpose of computing the annual management fee and annual trustee fee, the
NAV of the Fund should be inclusive of the management fee and trustee fee for
the relevant day.
“Quantshop MGS Medium
Index”
Quantshop MGS Bond Index (Medium 3-7)
“SC” or “Securities
Commission”
Securities Commission Malaysia
“Unit Holder(s)”
A person or persons registered as holder(s) of Units of any Fund and whose
name(s) appear(s) in the register of Unit Holders.
“Units”
Units of any Fund.
“Units in Circulation” or
“UIC”
“Valuation Point”
Units of the Fund created and fully paid.
Such time(s) on a Business Day as may be decided by the Manager wherein the
NAV of the Fund is calculated. Under normal circumstances, only one (1)
valuation is conducted on each Business Day.
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Updated as at May 2014
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Updated as at May 2014