MASTER
PROSPECTUS
This prospectus is dated 17 September 2011 and expires on 16 September 2012
MANAGER
Amanah Mutual Berhad
(195414-U)
TRUSTEES
AmanahRaya Trustees Berhad (766894-T)
HSBC (Malaysia) Trustee Berhad (001281-T)
Universal Trustee (Malaysia) Berhad (17540-D)
Malaysian Trustees Berhad (21666-V)
Funds
Date of Constitution
7 March 2008
6 March 1992
14 September 1994
15 May 1996
8 April 2002
11 February 2004
7 May 2003
4 December 2002
28 October 2004
28 October 2004
2 May 2006
25 October 2000
4 September 2002
29 March 2004
26 April 2011
INVESTORS
ARE
ADVISED
TO
READ
AND
UNDERSTAND THE CONTENTS OF THE PROSPECTUS.
IF IN DOUBT, PLEASE CONSULT A PROFESSIONAL
ADVISER. FOR INFORMATION CONCERNING CERTAIN
RISK FACTORS WHICH SHOULD BE CONSIDERED
BY PROSPECTIVE INVESTORS, SEE “RISK FACTORS”
COMMENCING ON PAGE 38.
PREFACE
The Unit Holders of AMB Family of Funds
Dear Valued Investors and Prospective Clients,
We, at Amanah Mutual Berhad are pleased to offer a full spectrum of investment solutions to meet your specific
investment needs and objectives through our comprehensive range of funds in Conventional, Shariah and
Ethical. Our funds are in various categories depending upon the underlying assets of each respective Fund,
namely Equity Funds, Fixed Income Funds and Balanced Funds.
This Master Prospectus represents AMB’s 15 Funds namely:
1)
2)
3)
4)
5)
6)
7)
8)
9)
10)
11)
12)
13)
14)
15)
PNB Structured Investment Fund (PNB SIF),
AMB Unit Trust Fund (AMBUTF),
AMB Balanced Trust Fund (AMBBTF),
AMB Income Trust Fund (AMBITF),
AMB Index-Linked Trust Fund (AMBILTF),
AMB Ethical Trust Fund (AMBETF),
AMB Enhanced Bond Trust Fund (AMBEBTF),
AMB SmallCap Trust Fund (AMBSCTF),
AMB Lifestyle Trust Fund Today (AMBLTF Today),
AMB Lifestyle Trust Fund 2014 (AMBLTF 2014),
AMB Dividend Trust Fund (AMBDTF),
AMB Dana Arif (AMBDA),
AMB Dana Ikhlas (AMBDI),
AMB Dana Yakin (AMBDY) and
AMB Dana Nabeel (AMBDN).
In order to understand how our Funds work, investors are encouraged to refer to Chapter 1 on the Summary of
Key Features which detail out the Funds’ objectives, asset allocation, investment policies and strategies. This
way, investors will know which Funds are suitable for their investment profile.
All investments carry some form of risks and the risk profile of a particular fund will very much depend on the
underlying investments or assets composition of the fund and market conditions. Investors can refer to Chapter 2
of this Master Prospectus for the inherent risks of investing in AMB Funds.
There are fees and charges that will be directly and indirectly incurred by investors when Units of the respective
Funds are purchased or repurchased. Further details of these fees and charges are disclosed in Chapter 7 of this
Master Prospectus.
th
Investments in our Funds can be made directly at our office at 34 Floor, Menara PNB, Jalan Tun Razak, Kuala
Lumpur or at any Maybank branches nationwide. For Shariah Funds, investments may also be made at Bank
Kerjasama Rakyat branches nationwide. Apex Investment Services Bhd distributes all AMB Funds except for
AMBDA, AMBITF, AMBEBTF, and AMBLTF Today. In addition, for PNB SIF, AMBETF, and AMBDN you could
also invest at ASNB branches nationwide. Corporate details of our distributors are available on page 212 of this
Master Prospectus.
We hope you will find the information in this Master Prospectus useful. For your investment consideration, should
you have any further inquiries, you may call AMB Client Services at 03 2034 0800 or email us at
ambcare@pnb.com.my.
As always, thanking you for allowing us to be of service to you.
Yours faithfully,
For and On Behalf of Amanah Mutual Berhad
Aldilla@Zilfalila binti Abdul Halim (Sheila Halim)
Chief Executive Officer
RESPONSIBILITY STATEMENT
This Master Prospectus has been reviewed and approved by the Directors of Amanah Mutual
Berhad, and they collectively and individually accept full responsibility for the accuracy of the
information. Having made all reasonable inquiries, they confirm to the best of their knowledge
and belief, there are no false or misleading statements, or omission of other facts which would
make any statement in the Master Prospectus false or misleading.
STATEMENTS OF DISCLAIMER
The Securities Commission Malaysia has approved the issue of, offer for subscription or
purchase,or issue an invitation to subscribe for or purchase units of the unit trust fund and a
copy of this Master Prospectus has been registered with the Securities Commission Malaysia.
The approval, and registration of this Master Prospectus, should not be taken to indicate that
the Securities Commission Malaysia recommends the Funds or assumes responsibility for the
correctness of any statement made or opinion or report expressed in this Master Prospectus.
The Securities Commission Malaysia is not liable for any non-disclosure on the part of the
management company responsible for the Funds and takes no responsibility for the contents in
this Master Prospectus. The Securities Commission Malaysia makes no representation on the
accuracy or completeness of this Master Prospectus, and expressly disclaims any liability
whatsoever arising from, or in reliance upon,the whole or any part of its contents.
INVESTORS SHOULD RELY ON THEIR OWN EVALUATION TO ASSESS THE
MERITS AND RISKS OF THE INVESTMENT. IN CONSIDERING THE INVESTMENT,
INVESTORS WHO ARE IN DOUBT ON THE ACTION TO BE TAKEN SHOULD
CONSULT PROFESSIONAL ADVISERS IMMEDIATELY.
No units will be issued or sold based on this Master Prospectus later than one year after the
date of this Master Prospectus.
Investors are advised to note that recourse for false or misleading statements or acts made in
connection with the Master Prospectus is directly available through sections 248, 249 and 357
of the Capital Markets and Services Act 2007.
AMB Dana Yakin, AMB Dana Ikhlas, AMB Dana Arif, and AMB Dana Nabeel have been certified
as being Shariah compliant by the Shariah adviser appointed for the Funds.
Master Prospectus 2011/2012
Contents
Glossary of Terms/Abbreviations……………………………………………………………………………..............................
Corporate Information……………………………………………………………………………………………..............................
1
Summary of Key Features of the Funds………………………………………………………………………………………
1.1
General Information on Conventional Funds ………………………………………………………………………………
1.2
General Information on Shariah Funds………………………………………………………………………………………..
1.3
Fees and Charges ……………………………………………………………………...…………..…………………………………..
1.4
Other Information ……………………………………………..……………………………………………………………………….
1.4.1
Information on Transactions ……………………………………………………………………………………………………….
1.4.2
Special Benefits …………………………………………………………………………………………………………………………..
1.4.3
Details of Deeds ………………………………............……………………………………………………………………………..
1.4.4
Investment via EPF Members’ Investment Scheme …………………………………………………………………….
1.4.5
Regular Saving Plan …………………………………………………………………………………………………………………….
4
9
12
12
25
30
33
33
35
36
37
37
2
2.1
Risk Factors ….……………………………………………………………………………………………………………………..……
Risks of Investing in Unit Trusts ……………………………………………………………………….............................
38
38
3
3.1
3.2
3.3
3.4
3.5
3.6
Detailed Information on the Funds ………………………………………………………………..............................
Introduction ……………………………………………………………………………………………………………………………….
PNB Structured Investment Fund ……………………………………………………………………………………………….
AMB Unit Trust Fund ………………………………………………………………………………………………………………….
AMB Balanced Trust Fund …………………………………………………………………………………………………………..
AMB Income Trust Fund ……………………………………………………………………………………………………………..
AMB Index-Linked Trust Fund …………………………………………………………………………………………………….
AMB SmallCap Trust Fund …………………………………………………………………………………………………………..
AMB Enhanced Bond Trust Fund …………………………………………………………………………………………………
AMB Ethical Trust Fund ………………………………………………………………………………………………………………
AMB Lifestyle Trust Fund Today ………………………………………………………………………………………………….
AMB Lifestyle Trust Fund 2014 ……………………………………………………………………………………………………
AMB Dividend Trust Fund ……………………………………………………………………………………………………………
AMB Dana Yakin …………………………………………………………………………………………………………………………
AMB Dana Ikhlas …………………………………………………………………………………………………………………………
AMB Dana Arif …………………………………………………………………………………………………………………………….
AMB Dana Nabeel……………………………………………………………………………………………………………………….
Permitted Investments for Conventional Funds…………………………………………………………………………
Permitted Investments for Shariah Funds ………………………………………………………………………………….
Investment Restrictions ………………………………………………………………………………………………………………
Exceptions and Exclusions Applicable to the Funds ……………………………………………………………………
Zakat for Shariah Funds (AMBDY, AMBDI, AMBDA, & AMBDN)
40
40
40
47
49
52
55
59
61
63
67
69
73
76
78
81
84
87
89
90
92
92
4
4.1
4.2
4.3
Investment Process of the Funds ……………………………………………………………………………………………….
Investment Process of the Funds ………………………………………………………………………………………………..
Bases of Valuation of Investments ………………………………………………………………………………………………
Policy on Gearing and Liquid Assets ……………………………………………………………………………………………
93
95
103
106
5
Funds’ Performance ……….………………………………………………………………………………………………………….
PNB Structured Investment Fund ……………………………………………………………………………………………….
AMB Unit Trust Fund ………………………………………………………………………………………………………………….
AMB Balanced Trust Fund …………………………………………………………………………………………………………..
AMB Income Trust Fund ……………………………………………………………………………………………………………..
AMB Index-Linked Trust Fund …………………………………………………………………………………………………….
AMB SmallCap Trust Fund …………………………………………………………………………………………………………..
AMB Enhanced Bond Trust Fund …………………………………………………………………………………………………
AMB Ethical Trust Fund ………………………………………………………………………………………………………………
AMB Lifestyle Trust Fund Today ………………………………………………………………………………………………….
AMB Lifestyle Trust Fund 2014 ……………………………………………………………………………………………………
AMB Dividend Trust Fund ……………………………………………………………………………………………………………
AMB Dana Yakin …………………………………………………………………………………………………………………………
107
107
108
109
110
111
112
113
114
115
116
117
118
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Master Prospectus 2011/2012
AMB Dana Ikhlas …………………………………………………………………………………………………………………………
AMB Dana Arif …………………………………………………………………………………………………………………………….
AMB Dana Nabeel……………………………………………………………………………………………………………………..
119
120
121
6
6.1
6.1.1
6.1.2
6.1.3
6.1.4
6.1.5
6.1.6
6.1.7
6.1.8
6.1.9
6.1.10
6.1.11
6.1.12
6.1.13
6.1.14
6.1.15
6.2
6.3
Historical Financial Highlights of the Funds …………………………………………………………....................
Extracts of the Financial Statements of the Funds ………………………………………………………………………
PNB Structured Investment Fund ……………………………………………………………………………………………….
AMB Unit Trust Fund ……………………………………………………………………………….....................................
AMB Balanced Trust Fund……………………………………………………………………………………………………………
AMB Income Trust Fund……………………………………………………………………………….................................
AMB Index-Linked Trust Fund……………………………………………………………………………...........................
AMB SmallCap Trust Fund……………………………………………………………………………………………………………
AMB Enhanced Bond Trust Fund………………………………………………………………………………………………….
AMB Ethical Trust Fund………………………………………………………………………………..................................
AMB Lifestyle Trust Fund Today…………………………………………………………………………..........................
AMB Lifestyle Trust Fund 2014 ……………………………………………………………………………………………………
AMB Dividend Trust Fund ……………………………………………………………………………………………………………
AMB Dana Yakin …………………………………………………………………………………………………………………………
AMB Dana Ikhlas …………………………………………………………………………………………………………………………
AMB Dana Arif …………………………………………………………………………………………………………………………….
AMB Dana Nabeel ………………………………………………………………………………………………………………………
Total Annual Expenses incurred by the Funds in the last Financial Year ………………………………………
Management Expense Ratio ……………………………………………………………………………………………………..
122
122
122
123
123
124
124
125
125
126
126
127
127
128
128
129
129
129
130
7
7.1
7.1.1
7.1.2
7.1.3
7.1.4
7.1.5
7.2
7.2.1
7.2.2
7.2.3
7.3
7.4
7.4.1
Fees, Charges and Expenses …………………………………………………………………………………………………
Charges ………………………….…………………………………………………………………...........................................
Sales Charge ………………………….…………………………………………………………………....................................
Repurchase Charge……………………………………………………………………………….........................................
Switching Charge…………………………………………………………………………………………………………………………
Transfer Charge...………………………………………………………………………………………………………………………..
Other Administrative Charges……………………………………………………………………………………………………..
Fees …………….………………………………………………………………………………………………………………………………
Management Fee………………………………………………………………………………………………………………………..
Trustee Fee …………………………………………………………………………………………………………………………………
Custodian Fee ….…………………………………………………………………………………….......................................
Fund’s Expenses ………………………….……………………………………………………………………...........................
Others …………………………………………………………………………………………………………................................
Policy on Brokerage Rebates and Soft Commissions ……………………………………………........................
132
132
132
133
134
134
134
135
135
136
137
137
137
137
8
8.1
8.2
8.2.1
8.2.2
8.3
8.3.1
8.3.2
8.3.3
8.3.4
8.3.5
8.4
8.5
8.6
8.7
8.8
8.9
8.10
8.11
Transaction Information …………………………………………………………………………………………………
Valuation of Units ………………………………………………………………………………………………………………………
Pricing of Units……………………………………………………………………………………………………………………………
Single Pricing Policy…………………………………………………………………………………………………………………….
Forward Pricing …………………………………………………………………………………………………………………………
Transactions……………………………………………………………………………………………………………………………….
Making an Initial Investment………………………………………………………………………………………………………
Making an Additional Investment……………………………………………………………………………………………….
How to Repurchase Units of the Fund………………………………………………………………………………………..
Transfer of Units………………………………………………………………………………………………………………………..
Switching……………………………………………………………………………………………………………………………………
Error in Pricing……………………………………………………………………………………………………………………………
Determination of Prices and Charges …………………………………………………………………………………………
Minimum Initial Investment……………………………………………………………………………………………………….
Minimum Additional Investment…………………………………………………………………………………………………
Minimum Balance of Investment………………………………………………………………………………………………….
Cooling-off Right…………………………………………………………………………………………………………………………..
Where to Purchase, Repurchase, Transfer, and Switch……………………………………………………………….
Transfer of Units…………………………………………………………………………………………………………………………
138
138
139
139
140
140
141
142
143
144
144
144
145
145
145
145
146
146
146
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Master Prospectus 2011/2012
9
9.1
9.2
9.3
9.4
9.5
Understanding Income Distributions …………………………………….….…………………………….................
Income Distribution Policy …………………………………………………………………………...............................
What Comprises Income Distribution? ……..………………………………………………………...........................
Mode of Payment for the income distribution …..………………………………………………………………………..
Auto-Reinvestment of Distribution Cheques upon Lapse of Six Months Cheques Validity Period ..
Policy on Unclaimed Monies …………………………………………..…………………………………………………………
147
147
147
147
148
148
10
10.1
10.2
10.3
10.4
10.5
Communications with Unit Holders ………………………………………………………………………………………
Customer Information Service ……………………………………………………………………….............................
Regular Reports and Statements on your Investment ……………………………………………………………….
Register of Unit Holders …………………………………………………………………………………………………………….
Policies Adopted by AMB to Avoid Money Laundering Activities ……………………………………………….
Material Contracts …………………………………………………………………………………………………………………….
149
149
149
150
150
150
11
11.1
11.2
11.3
11.3.1
11.3.2
11.4
11.5
11.5.1
11.6
11.6.1
11.6.2
11.7
11.7.1
11.7.2
11.8
11.8.1
11.8.2
11.8.3
11.8.4
11.8.5
11.8.6
11.9
11.10
11.11
11.12
The Management and Administration of the Funds ………………………………………………………………
Corporate Profile of the Manager ………………………………………………………………………........................
Past Performance of the Manager ………………………………..……………………………………........................
Profile of the Board of Directors of the Manager ……………..……………………………………….................
Company Secretary ……………………………………………………………………………………………………………………
Senior Compliance Officer ………………………………………………………………………………...........................
Profile of the Key Management Staff of the Manager …………………………………..…………………………
The Investment Committee of the Funds managed by the Manager .…………………………................
Roles and Resposibilities of the Investment Committee…………………………………………………………….
The Ethical Panel of Advisors …………………………………………………………………………............................
Roles and Resposibilities of the Ethical Panel of Advisors………………………………………………………….
Profile of Ethical Panel of Advisors……………………………………………………………………………………………
The Shariah Committee …………………………………………………………………………………………………………….
Roles and Resposibilities The Shariah Committee Members……………………………………………………..
Shariah Committee Members……………………………………………………………………………………………………
The External Investment Managers………………………………………………………………………………………….
Roles and Resposibilities of The External Investment Managers……………………………………………….
Permodalan Nasional Berhad (PNB) …………………………………………………………………….......................
Mayban Investment Management Sdn Bhd (MIM) ……………………………………………………………………
UOB-OSK Asset Management Sdn Bhd (UOB-OSKAM) ………………………………………………………………
HwangDBS Investment Management Berhad (HwangDBS IM) ………………………………………………….
CIMB-Principal Asset Management Berhad (CIMB-Principal) ………………..…………………………………
Designated Investment Managers of the Funds ………………………………………………………………………..
Management Company’s Delegates ………………………………………………………………………………………….
Declaration of Absence of Conflict of Interest involving EIMs …………………………………………………..
Material Litigation and Arbitration ……………………………………………………………………………………………
151
151
152
152
154
154
154
156
156
156
156
157
158
158
158
160
160
160
161
163
164
166
167
168
168
168
12
12.1
12.2
12.3
12.4
12.5
12.6
12.7
12.8
13
14
15
16
17
18
19
The Trustees of the Funds …………………………………………………………………………………………………….
Profile of Universal Trustee (Malaysia) Berhad (UTMB) …………………………………………………………….
Profile of HSBC (Malaysia) Trustee Berhad (HSBC) …………………………………………………………………….
Profile of Malaysian Trustees Berhad (MTB) ……………………………………………………………………………..
Profile of AmanahRaya Trustees Berhad (ART)…………………………………………………………………………..
Duties and Obligations of Trustees ..………………………………………………………………………………………….
Retirement, Removal or Replacement of the Trustee …...……………………………………………...............
Powers of the Trustee to Remove or Replace the Manager ……………………………………………………
Statement of Disclaimer……………………………………………………………………………………………………………
Salient Terms of Deeds ………………………………………………………………………………..............................
Exemptions and Variations Granted by the SC …………………………………………………………………………
Related Party Transactions/Conflict of Interest ………….……………………………………………………………
Tax Advisors’ Letter .......................................................................................................................
Consents …………………………………………………………………………………………………………………………………..
Documents Available for Inspection .............................................................................................
List of Distributions Channels……………………………………………………………………………………………………
169
169
170
175
179
182
183
183
183
184
187
190
192
210
211
212
AMB Client Services 03-2034 0800
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Master Prospectus 2011/2012
Glossary of Terms / Abbreviations
The following words or abbreviations shall have the following meanings in the current Master Prospectus
unless otherwise stated:
“Act” or “CMSA”
The Capital Markets and Services Act, 2007 including all amendments
thereto and all regulations rules and guidelines issued in connection
therewith.
“AMB” or “Manager”
Amanah Mutual Berhad (195414-U).
“AMB Family of Funds”
All Funds under the management of the Manager.
“ASNB”
Amanah Saham Nasional Berhad (47457-V), the holding company of the
Manager.
“PNB SIF”
“AMBUTF”
“AMBBTF”
“AMBITF”
“AMBILTF”
“AMBSCTF”
“AMBEBTF”
“AMBETF”
“AMBLTF Today”
“AMBLTF 2014”
“AMBDTF”
“AMBDY”
“AMBDI”
“AMBDA”
“AMBDN”
PNB Structured Investment Fund
AMB Unit Trust Fund
AMB Balanced Trust Fund
AMB Income Trust Fund
AMB Index-Linked Trust Fund
AMB SmallCap Trust Fund
AMB Enhanced Bond Trust Fund
AMB Ethical Trust Fund
AMB Lifestyle Trust Fund Today
AMB Lifestyle Trust Fund 2014
AMB Dividend Trust Fund
AMB Dana Yakin
AMB Dana Ikhlas
AMB Dana Arif
AMB Dana Nabeel
“Bursa Malaysia”
Bursa Malaysia Securities Berhad (635998-W).
“Business Day(s)”
A day on which the Bursa Malaysia is open for trading in securities.
“BAFIA”
Banking and Financial Institutions Act 1989, including all amendments
thereto and all regulations, rules and guidelines issued in connection
therewith.
“Cooling-off Period”
The cooling-off period of any of the AMB Family of Funds is within 6
Business Days commencing from the date of purchase i.e. the date on
which the Manager receives the application form and the investment
amount.
“Cooling-off Right”
The right given to an investor who is investing in any of the AMB Family of
Funds for the first time, save and except for a corporation or institution, a
staff of that management company, and a person registered with a body
approved by the SC to deal in unit trusts.
“DBMB”
Deutsche Bank (Malaysia) Berhad (312552-W).
“Deeds”
The Deeds including any supplementary Deeds between the Manager, the
Trustees and the Unit Holders for the AMB Family of Funds.
4
AMB Client Services 03-2034 0800
Master Prospectus 2011/2012
“Distribution Branch”
Any branch, outlet or any other premises of the Distribution Channel
(IUTA) used as distribution channel for the purpose of marketing and
distribution of Units.
“Eligible Market”
Any market, such as the stock market, futures market, money market, any
over-the-counter private debt securities market, as agreed in writing from
time to time by the Manager and Trustee, which falls within the definition
of an Eligible Market as defined in the Guidelines.
“Ethical Panel of Advisors”
The Panel of Advisors appointed by the Manager to AMBETF.
“EPF”
Employees Provident Fund.
“External Investment Manager” or
“EIM”
Permodalan Nasional Berhad (PNB) for PNB SIF and AMBDN; Mayban
Investment Management Sdn Bhd (MIM) for AMBILTF, UOB-OSK Asset
Management Sdn Bhd (UOB-OSKAM) for AMBETF, AMBLTF Today,
AMBLTF 2014, AMBUTF, AMBSCTF and AMBDY; HwangDBS Investment
Management Bhd (HwangDBS IM) for AMBDTF and CIMB-Principal Asset
Management Berhad (CIMB-Principal) for AMBBTF, AMBITF, AMBEBTF,
AMBDI and AMBDA.
“FBM Top 100 Index”
FTSE Bursa Malaysia Top 100 Index.
“FBM KLCI”
FTSE Bursa Malaysia KLCI.
“FiMM”
Federation of Investment Managers Malaysia.
“Forward Pricing”
The price of a unit that is the NAV per Unit calculated at the next valuation
point after an instruction or a request is received.
“FBM EMAS Index”
FTSE Bursa Malaysia EMAS Index.
“FBM EMAS Shariah Index”
FTSE Bursa Malaysia EMAS Shariah Index.
“FBM SmallCap Index”
FTSE Bursa Malaysia SmallCap Index.
“Fund”
Any of the Funds under the management of the Manager.
“Funds”
PNB SIF, AMBUTF, AMBBTF, AMBITF, AMBILTF, AMBETF, AMBEBTF,
AMBSCTF, AMBLTF Today, AMBLTF 2014, AMBDTF, AMBDY, AMBDI,
AMBDA and AMBDN.
“GIA”
General Investment Account
“GII”
Government Investment Issues.
“Guidelines”
The Guidelines on Unit Trust Funds and any other relevant guidelines on
unit trust funds issued by the SC as amended, modified or varied by any
notes, circular and guidelines issued from time to time by the SC.
“Investment Committee”
The Investment Committee of the Funds which is primarily responsible for
formulating, implementing and monitoring the investment management
strategies of the Funds in accordance with the respective investment
objectives of the Funds.
“Investment Management
Agreement”
The agreement between AMB and the EIM setting out the terms and
conditions upon which the respective EIM has been appointed and has
agreed to act as the EIM of the respective Fund.
AMB Client Services 03-2034 0800
5
Master Prospectus 2011/2012
“IUTA” or “Distribution Channel”
Any Institutional Unit Trust Advisers, which is an institution, a corporation
or an organisation that is registered with FIMM in accordance with their
guidelines to distribute the Units.
“KLIBOR”
Kuala Lumpur Inter-Bank Offered Rates.
“Licensed Financial Institution”
Any bank or financial institution licensed under BAFIA or the Islamic
Banking Act 1983.
“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 Liquidity Framework 1998)
“Long Term”
Means a period of more than five years
“LPD”
The latest practicable date for the purposes of ascertaining the
information contained in this Master Prospectus, i.e. 30 June 2011.
“Management Expense Ratio” or
“MER”
The ratio of the sum of the fees and the recovered expenses of the Fund
to the average value of the Fund calculated on a daily basis, i.e.:
Fees of the Fund recovered expenses of the Fund
x 100
Average value of the Fund calculated on a daily basis
Where:
Fees
=
All ongoing fees deducted/deductible directly from the
Fund in respect of the period covered by the
management expense ratio expressed, as a fixed
amount calculated on a daily basis. This would include
the annual management fee, the annual trustee fee
and any other fees deducted/deductible directly from
the Fund;
Recovered
Expenses
=
All expenses recovered from /charged to the Fund as a
result of the expenses incurred by the operation of the
Fund, expressed as a fixed amount. This should not
include expenses that would otherwise be incurred by
an individual investor (e.g. brokerage, taxes and
levies);and
Average
Value of The
Fund
=
The NAV of the Fund, including Funds' net income
valueof the Fund less expenses on an accrued basis, in
respect of the period covered by the management
expense ratio, calculated on a daily basis.
“Maturity Date”
The respective Maturity Date of the Funds (where applicable) as stated in
the Deeds .
“Maybank”
Malayan Banking Berhad (3813-K).
“Maybank Islamic”
Maybank Islamic Berhad (787435-M)
“Medium Term”
Means a period between three to five years
“MGS”
Malaysia Government Securities.
“NAV”
Net Asset Value of the Fund.
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“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.
“NAV per Unit”
The NAV of the Fund divided by the number of Units in Circulation, at the
valuation point.
“PHNB”
Pelaburan Hartanah Nasional Berhad (175967-W), being the manager of
PNB REIT.
“PNB”
Permodalan Nasional Berhad (38218-X), the ultimate holding company of
the Manager.
“PNB REIT”
PNB Real Estate Investment Trust, a private and unlisted REIT.
“Portfolio Turnover Ratio” or
“PTR”
The ratio of the average sum of the acquisitions and disposals of the Fund
for the year to the average value of the Fund for the year calculated on a
daily basis, i.e.:
[Total acquisitio ns of the Fund for the year
Total disposals of the Fund for the year] / 2
Average value of the Fund for the year calculated on a daily basis
“Purchase Price of Units”
The buying of Units by Unit Holders in a Fund is calculated at NAV per Unit
as at the next valuation point after the application is received by the
Manager.
“Quantshop MGS Medium Index”
Quantshop MGS Bond Index (Medium 3-7).
“RAM”
RAM Rating Services Berhad (208095-U).
“REIT”
Real Estate Investment Trust.
“REITs Guidelines”
The Guidelines on Real Estate Investment Trusts issued by the SC as may
be amended from time to time.
“RM” or “Ringgit”
Ringgit Malaysia.
“Repurchase Price of Units”
The repurchasing of Units by Unit Holders in a Fund is calculated at NAV
per Unit as at the next valuation point after the repurchase request is
received by the Manager.
“SC”
Securities Commission Malaysia.
“Shariah Committee Members”
The Committee appointed by the Manager to AMBDY, AMBDI, AMBDA
and AMBDN.
“Shariah Principles”
Shariah principles are based on Islamic law, originating from the Quran as
well as practices and explanations rendered by the Prophet Muhammad
(PBUH), Ijma’, Qiyas and Ijtihad of ulama’ (personal reasoning of Islamic
jurists).
“Short Term”
Means a period of less than three years.
“Structured Products”
Structured products which have been issued in accordance with such
relevant regulatory requirements as may be imposed by the SC and Bank
Negara Malaysia.
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Master Prospectus 2011/2012
“Sukuk”
Means a document or certificate, documenting the undivided pro-rated
ownership of underlying assets. The sak (singular of sukuk) is freely traded
at par, premium or discount. In Malaysia, the term sukuk is used for fixed
income securities which comply with Shariah requirements. However, it is
normally used together with Shariah principles applied in the structure,
such as Bai Bithaman Ajil, Murabahah, and Istisna’ for underlying
transactions based on indebtedness, or Musyarakah and Mudharabah for
underlying transactions based on partnerships.
“Trustees”
Universal Trustee (Malaysia) Berhad (UTMB) (17540-D) as trustee for
AMBUTF, AMBBTF and AMBITF;
HSBC (Malaysia) Trustee Berhad (HSBC) (001281-T) as trustee for
AMBILTF, AMBETF, AMBLTF Today, AMBLTF 2014 and AMBDTF;
Malaysian Trustees Berhad (MTB) (21666-V) as trustee for AMBSCTF and
AMBEBTF; and
AmanahRaya Trustees Berhad (ART) (766894-T) as trustee for PNB SIF,
AMBDY, AMBDI, AMBDA and AMBDN.
“Trustee"
Any of the Trustees.
“Unit Holder(s)”
A person or persons registered as holder(s) of a Unit or Units of the Funds
and whose name(s) appear(s) in the Register of Unit Holders.
“Units”
Units of any Fund.
“Units in Circulation” or “UIC”
Units of the Fund created and fully paid.
“Valuation Point”
Such time(s) on a Business Day as may be decided by the Manager
wherein the NAV of the Funds is calculated. Under normal circumstances,
only one valuation is conducted on each Business Day.
For Funds with no foreign investments, the valuation of NAV of the Funds
is conducted on each Business Day at the close of Bursa Malaysia. For
Funds with foreign investments, the valuation of the Funds will be
conducted after the close of business of Bursa Malaysia for the relevant
day, as certain of the foreign markets in which the Funds may invest in
have yet to close due to the different time zones of these countries. As
such, the valuation point will thus be after the close of Bursa Malaysia but
not later than 9.00 am (or any other such time as may be permitted by the
relevant authorities from time to time) on the following day in which the
Manager is open for business.
Definitions or meanings of words not otherwise expressly defined above shall have the meaning or
interpretation as ascribed in the Act, the Guidelines and any other relevant laws governing unit trust funds.
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Corporate Information
MANAGER
Amanah Mutual Berhad (195414-U)
Registered Office
4th Floor, Balai PNB
201-A, Jalan Tun Razak
50400 Kuala Lumpur
Telephone : (603)-2050 5100
Facsimile : (603)-2163 3477
Business Office
34th Floor, Menara PNB
201-A, Jalan Tun Razak
50400 Kuala Lumpur
Telephone
: (603)-2034 0800
Facsimile
: (603)-2162 5958 /
(603)-2163 3212
AMB Client Services : (603)-2034 0800
Email
: ambcare@pnb.com.my
Website
: www.ambmutual.com.my
BOARD OF DIRECTORS
Tun Ahmad Sarji bin Abdul Hamid
Chairman
(Non-Executive/Non-Independent Director)
Tan Sri Dato' Sri Hamad Kama Piah bin Che Othman
(Non-Independent member)
Tan Sri Dato' Dr. Wan Mohd. Zahid bin
Mohd. Noordin
(Non-Executive/Independent Director)
Tan Sri Dato' Md. Desa bin Pachi
(Non-Executive/Independent Director)
Dato’ Idris bin Kechot
(Non-Executive/Non-Independent Director)
ETHICAL PANEL OF ADVISORS (for AMBETF)
Dato’ Seri Haji Arshad bin Haji Hashim
Chairman
Dato’ Noor Farida binti Mohd Ariffin
Datuk Ibrahim bin Muhammad
SHARIAH COMMITTEE MEMBERS
(for AMBDA, AMBDI, AMBDY, and AMBDN)
Dato’ Dr. Abdul Halim bin Ismail
Chairman
Datuk Dr. Syed Othman bin Syed Hussin
Alhabshi
Prof. Dato’ Dr. Abdul Monir bin Yaacob
Prof. Dato’ Dr. Mahmood Zuhdi bin Hj Ab
Majid
AUDIT COMMITTEE
• Tan Sri Dato' Dr. Wan Mohd. Zahid bin Mohd.
Noordin
Chairman (Independent member)
• Tan Sri Dato' Md Desa bin Pachi
(Independent member)
• Tan Sri Datuk Amar Bujang bin Mohammed
Bujang Mohammed Nor
(Independent member)
COMPLIANCE COMMITTEE
• Tan Sri Dato' Dr. Wan Mohd. Zahid bin Mohd.
Noordin
Chairman (Independent member)
INVESTMENT COMMITTEE MEMBERS
• Tan Sri Dato‘ Sri Hamad Kama Piah bin Che
Othman
(Non-Independent member)
• Tun Ahmad Sarji bin Abdul Hamid
Chairman (Non-Independent member)
• Tan Sri Dato' Md. Desa bin Pachi
(Independent member)
• Tan Sri Dato' Dr. Wan Mohd. Zahid bin Mohd.
Noordin (Independent member)
• Encik Paisol bin Ahmad
(Non-Independent member)
• Tan Sri Dato' Md. Desa bin Pachi
(Independent member)
• Dato’ Idris bin Kechot
(Non-Executive/Non-Independent Director)
AMB Client Services 03-2034 0800
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Master Prospectus 2011/2012
RISK MANAGEMENT COMMITTEE
• Tan Sri Datuk Amar Bujang bin Mohammed Bujang
Mohammed Nor
Chairman
• Tan Sri Asmat bin Kamaluddin
• Tan Sri Dato’ Md. Desa bin Pachi
• Tan Sri Ainum binti Mohamed Saaid
COMPANY SECRETARY
Puan Adibah Khairiah binti Ismail @ Daud
(MIA 13755)
4th Floor, Balai PNB
201-A, Jalan Tun Razak
50400 Kuala Lumpur
TRUSTEES
HSBC (Malaysia) Trustee Berhad (001281-T)
(for AMBILTF, AMBETF, AMBLTF Today, AMBLTF
2014 and AMBDTF)
Registered and Business Office :
th
13 Floor, Bangunan HSBC, South Tower
No. 2, Leboh Ampang
50100 Kuala Lumpur.
Telephone : (603)-2075 7800 (General Line)
Facsimile : (603)-2026 1273
HSBC (Malaysia) Trustee Berhad’s Delegate
The Hongkong and Shanghai Banking Corporation
Limited (as custodian ) and assets held through :
HSBC Nominees (Tempatan) Sdn Bhd (258854-D)
No 2 Leboh Ampang
50100 Kuala Lumpur.
Telephone : (603)- 2070 0744
Facsimile : (603)- 2072 9787
AmanahRaya Trustees Berhad (766894-T)
(for PNB SIF, AMBDA, AMBDI, AMBDY, and AMBDN)
Registered Office:
Tingkat 11, Wisma AmanahRaya
No. 2, Jalan Ampang
50508 Kuala Lumpur
Telephone: (603) 2055 7388
Website: www.amanahraya.com.my
HSBC Institutional Trust Services (Asia) Limited
6th Floor, Tower One
HSBC Centre
No 1 Sham Mong Road
Kowloon, Hong Kong
Telephone : (852)25336333
Facsimile : (852)28696120
Business Office:
Tingkat 2, Wisma TAS
No. 21, Jalan Melaka
50100, Kuala Lumpur
Telephone : (603)-2036 5000
Facsimile : (603)-2072 0322
Website
: www.amanahraya.com.my
Malaysian Trustees Berhad (21666-V)
(for AMBSCTF and AMBEBTF)
AmanahRaya Trustees Berhad’s Delegate (AMBDA)
Malayan Banking Berhad (Custody & Services Dept)
rd
3 Floor, Menara Maybank
100 Jalan Tun Perak
50050 Kuala Lumpur
Telephone : (603)-2074 7111
Facsimile : (603)-2032 1572 / 2070 0966
Universal Trustee (Malaysia) Berhad(17540-D)
(for AMBUTF, AMBBTF and AMBITF)
Registered and Business Office:
No. 1, 3rd Floor
Jalan Ampang, 50450 Kuala Lumpur
Telephone: (603)-2070 8050
Facsimile : (603)-2031 8715 / 2032 3194
Email Address: info@utmb.com.my
Website : www.universaltrustee.com.my
10
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Registered and Business Office:
Level 2, Menara Prudential
No.10, Jalan Sultan Ismail
50250 Kuala Lumpur
Telephone: (603)-2176 1066
Facsimile : (603)-2032 1222
Email : mtb@mytrustees.com.my
Malaysian Trustees Berhad’s Delegate
Mayban Custody & Services
rd
3 Floor Menara Maybank
100 Jalan Tun Perak
50050 Kuala Lumpur
Telephone: (603)-2074 7111
Facsimile : (603)-2032 1572
Master Prospectus 2011/2012
EXTERNAL INVESTMENT MANAGERS
TAX ADVISORS
Permodalan Nasional Berhad (38218-X)
(for PNB SIF and AMBDN)
4th Floor, Balai PNB
201-A, Jalan Tun Razak
50400 Kuala Lumpur
Telephone : (603)-2050 5100
Website : www.pnb.com.my
PricewaterhouseCoopers Taxation Services Sdn
Bhd
(for AMBUTF, AMBITF, AMBBTF and AMBDY)
Level 10, 1 Sentral, Jalan Travers, Kuala Lumpur
Sentral
P.O. Box 10192, 50706 Kuala Lumpur.
Mayban Investment Management Sdn Bhd(421779-M)
(for AMBILTF)
Business Office Address :
Level 13, Tower C,
MaybanLife Tower
Dataran Maybank
No.1, Jalan Maarof
59000 Kuala Lumpur
Telephone : (603)-2297 7888
Facsimile : (603)-2297 7880
UOB-OSK Asset Management Sdn Bhd (219478-X)
(for AMBETF, AMBLTF Today, AMBLTF 2014, AMBSCTF,
AMBUTF and AMBDY)
Level 3, Plaza OSK
Jalan Ampang
50450 Kuala Lumpur
Telephone: (603)-2732 1181
Facsimile : (603)-2732 1100
HwangDBS Investment Management Berhad(429786-T)
(for AMBDTF)
Suite 12-03, 12th Floor, Menara Keck Seng
203, Jalan Bukit Bintang
55100 Kuala Lumpur
Telephone : (603)-2142 1881
Facsimile : (603)-2141 1866/ (603)-2143 1881
CIMB-Principal Asset Management Berhad (304078-K)
(for AMBBTF, AMBITF, AMBEBTF, AMBDI and AMBDA)
Level 5, Menara Milenium
8, Jalan Damanlela
Bukit Damansara
50490 Kuala Lumpur
Telephone : (603)-2084 2000
Facsimile : (603)-2084 2031
Website : www.cimb-principal.com.my
AUDITORS
Messrs. Ernst & Young
Chartered Accountants
Level 23A Menara Milenium, Jalan Damanlela
Pusat Bandar Damansara,
50490 Kuala Lumpur
Ernst & Young Tax Consultants Sdn Bhd
(AMBILTF, AMBETF, AMBEBTF, AMBSCTF,
AMBLTF TODAY, AMBLTF 2014, AMBDTF, PNB SIF,
AMBDA , AMBDI, and AMBDN)
Level 23A Menara Milenium
Jalan Damanlela, Pusat Bandar Damansara,
50490 Kuala Lumpur
PRINCIPAL BANKER
Malayan Banking Berhad (3813-K)
Kuala Lumpur Main Office,
100 Jalan Tun Perak, 50050 Kuala Lumpur.
Maybank Islamic Berhad (787435-M)
Level 10, Tower A, Dataran Maybank,
1, Jalan Maarof
59000 Kuala Lumpur
Telephone: (603)-2297 2001
Facsimile : (603) - 2297 2002
Website: www.maybankislamic.com.my
SOLICITORS
Messrs. Zainal Abidin & Co.
Suite 1803 – 1806,
18th Floor, Plaza Permata,
Jalan Kampar Off Jalan Tun Razak
50400 Kuala Lumpur.
Messrs. Othman Hashim & Co (for AMBDY and
AMBDA)
Suite 18.04
Menara MAA
No. 12, Jalan Dewan Bahasa
50460 Kuala Lumpur
FEDERATION OF INVESTMENT MANAGERS
MALAYSIA (FiMM)
19-07-3, 7th Floor, PNB Damansara,
19, Lorong Dungun, Damansara Heights,
50490 Kuala Lumpur.
Telephone: (603)-2093 2600
Facsimile : (603)-2093 2700
Website : www.fimm.com.my
AMB Client Services 03-2034 0800
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Master Prospectus 2011/2012
1 Summary of Key Features of the Funds
This section is only a summary of the salient information about the Funds. Investors should read and
understand the whole Master Prospectus before making investment decisions.
1.1 General Information on Conventional Funds
PNB Structured Investment Fund
Fund Category / Type
Mixed Assets / Income and Growth Fund
Investment
Objective of the
Fund
The Fund aims to provide investment opportunities that generate
reasonable returns and growth over the tenure of the Fund while
endeavouring to provide capital protection to Unit Holders.
Investment Strategy
To achieve this objective, the Fund will be investing in RM-denominated
Structured Products, PNB REIT, listed & unlisted securities, fixed income
securities, any other investments permitted by the Deed in Malaysia or any
other Eligible Market and cash equivalent instruments to meet its liquidity
requirements. The Structured Products are principal protected upon
maturity.
Further
details on
page :
40
40
The Fund will be investing in Units of PNB REIT which offer potential regular
income and upside potential through exposure in properties. PNB REIT has
principal protection features whereby its properties have a buy-back option
from the respective vendors to repurchase the properties at the highest
price offered by third party purchasers or the original purchase price plus
capital expenditure on the respective property, whichever is the higher, and
subject to the REITs Guidelines.
Investors’ Profile
The Fund is suitable for investors with the following profile: Seek capital protection;
 Wish to participate in the potential upside of global equities, interest rates,
indices or any other underlying(s) as may be permitted under the Deed;
and
 Have low risk tolerance and a medium-term investment horizon.
Distribution Policy
Income (if any) is expected to be distributed at the Manager’s discretion, 147, 148
subject to the approval from the Trustee.
Asset Allocation

Up to 80% in Structured Products
Up to 50% in PNB REIT
 Up to 80% in any other investments permitted by the Deed which include a
diversified portfolio of listed securities, primarily on the Bursa Malaysia,
unlisted securities and fixed income securities; and
 Min 2% in cash and money market instruments for liquidity purposes
41, 107
Benchmark
12-month Maybank fixed deposit rate.
40, 107
Principal risks of
investing in the Fund
The potential risks associated with securities and instruments invested by
PNB SIF are counterparty risk, market risk, structured product risk, currency
risk, liquidity risk, early repurchase risk, individual asset risk/specific risk,
legal risk, prepayment/commitment risk, funding risk and operational risk.
Maximum Approved
Fund Size
3 billion Units

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Master Prospectus 2011/2012
External Investment
Manager
Permodalan Nasional Berhad (38218-X)
Trustee
AmanahRaya Trustees Berhad (766894-T)
Launch Date
12 May 2008
Maturity Date
5 July 2013
Financial Year End
31 July
Tenure
5 Years
UIC as at LPD
2.43 billion Units
Note : During the tenure of PNB SIF, only Units repurchased by the Manager may be resold based on the NAV
per unit at that point of time.
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Master Prospectus 2011/2012
AMB Unit Trust Fund
Further
details on
page :
Fund Category / Type
Equity Fund / Growth Fund
Investment Objective of the
Fund
To achieve a steady long-term income and capital growth through
a diversified portfolio of larger capitalization equity investments.
47
Investment Strategy
The Fund invests primarily in blue chip and high growth stocks that
can increase the potential for better long-term returns.
47
Asset Allocation
• Min 40% Max 90% in equities
• Min 10% in liquid assets
47, 108
Benchmark
• 90% of the performance of the FBM KLCI.
• 10% of the 1-month fixed deposit rate of commercial banks.
47, 108
Principal risks of investing
in the Fund
The principal risks of investing in the Fund are market risk,
individual stock risk, liquidity risk and operational risk.
Investors’ Profile
The Fund is suitable for all investors with the following profile:
Whose primary interest is in investments for the long term and
capital growth of their investment; and
Those who are seeking investment in larger blue chips and
growth stocks.
Distribution Policy
Income (if any) is expected to be distributed annually at the
Manager’s discretion, subject to the approval from the Trustee.
Maximum
Size
Approved
Fund
1.5 billion Units
External Investment Manager
UOB-OSK Asset Management Sdn Bhd (UOB-OSK) (219478-X)
Trustee
Universal Trustee (Malaysia) Berhad (17540-D)
Launch Date
26 March 1992
Financial Year End
30 June
UIC as at LPD
156.71 million Units
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48
147, 148
Master Prospectus 2011/2012
Further
details on
page :
AMB Balanced Trust Fund
Fund Category / Type
Balanced Fund / Growth and Income Fund
Investment Objective of the
Fund
To provide a balance between income and long-term capital
appreciation.
49
Investment Strategy
The Fund invests in a wide variety of assets, balancing its
investment across potentially high yielding share investments
aiming to increase long term returns.
49
Asset Allocation
• Min 20% Max 60% in equities
• Min 20% Max 60% in fixed income securities
Min 2% in liquid assets
50, 109
Benchmark
• 50% of the performance of the FBM KLCI.
• 50% Quantshop MGS Medium Index.
49, 109
Principal risks of investing
in the Fund
The principal risks of investing in the Fund are market risk,
individual stock risk, credit/ default risk, interest rate risk, liquidity
risk and operational risk.
Investors’ Profile
The Fund is suitable for all investors with the following profile:
Who are seeking a fully managed and balanced portfolio of
investments; and
Who have a long-term investment horizon of 5 years or more.
Distribution Policy
Income (if any) is expected to be distributed annually at the 147, 148
Manager’s discretion, subject to the approval from the Trustee.
Maximum
Size
Approved
Fund
50
1.15 billion Units
External Investment Manager
CIMB-Principal Asset Management Berhad (304078-K)
Trustee
Universal Trustee (Malaysia) Berhad (17540-D)
Launch Date
19 September 1994
Financial Year End
30 September
UIC as at LPD
146.31 million Units
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Master Prospectus 2011/2012
AMB Income Trust Fund
Further
details on
page :
Fund Category / Type
Bond Fund / Income Fund
Investment Objective of the
Fund
To maximise returns over the medium term and while at the same
time offer stability of capital and regular consistent income.
52
Investment Strategy
The Fund’s investment strategy is to create a prudent mix in its
portfolio to comply with its investment objective and to provide
professional assessment of investment prospects by its External
Investment Manager in line with the economic outlook.
52
Asset Allocation
Min 40% Max 98% in fixed income securities
• Max 60% in liquid assets
53, 110
Benchmark
12-month fixed deposit rate of commercial banks.
52, 110
Principal risks of investing
in the Fund
The principal risks of investing in the Fund are market risk, credit /
default risk, interest rate risk, liquidity risk and operational risk.
Investors’ Profile
The Fund is suitable for investors who:
seek a medium term investment with regular consistent income;
and
seek investment with potential for moderate capital growth.
Distribution Policy
Income (if any) is expected to be distributed annually at the 147, 148
Manager’s discretion, subject to the approval from the Trustee.
Maximum Approved Fund Size
600 million Units
External Investment Manager
CIMB-Principal Asset Management Berhad (304078-K)
Trustee
Universal Trustee (Malaysia) Berhad (17540-D)
Launch Date
19 June 1996
Financial Year End
30 June
UIC as at LPD
94.47 million Units
16
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Master Prospectus 2011/2012
Further
details on
page :
AMB Index-Linked Trust Fund
Fund Category / Type
Equity Fund / Index Fund
Investment Objective of the
Fund
To achieve an investment result that tracks the performance of the
benchmark FBM KLCI.
55
Investment Strategy
The Fund’s policy is to remain fully invested at all times to minimize
the tracking error.
55
Asset Allocation
• Min 90.0% Max 99.5% in equities
• Min 0.5% Max 10.0% in liquid assets
55, 111
Benchmark
FBM KLCI
55, 111
Principal risks of investing
in the Fund
The principal risks of investing in the Fund are market risk, individual
stock risk, liquidity risk and operational risk.
Investors’ Profile
The Fund is suitable for investors who: • Desire returns that are consistent with the performance of the
FBM KLCI; and
• Have a medium to high-risk tolerance.
Distribution Policy
It is not the main objective of the Fund to distribute income as the
main focus of the Fund is to secure capital growth in line with the
performance of the FBM KLCI. Income (if any) is expected to be
distributed at the Manager’s discretion, subject to the approval from
the Trustee.
Maximum Approved Fund Size
400 million Units
External Investment Manager
Mayban Investment Management Sdn Bhd (421779-M)
Trustee
HSBC (Malaysia) Trustee Berhad (001281-T)
Launch Date
16 May 2002
Financial Year End
31 October
UIC as at LPD
20.00 million Units
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147
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Master Prospectus 2011/2012
AMB SmallCap Trust Fund
Further
details on
page :
Fund Category / Type
Equity Fund / Growth Fund
Investment Objective of the
Fund
To achieve medium to long-term capital growth by primarily
investing into securities of small and medium sized companies : i) listed on the Bursa Malaysia’s Main Market, ACE Market and/or
any other boards approved by the SC;
ii) with market capitalisation of not more than the limit considered
by the SC to be appropriate for fund similar to this Fund; and
iii) which have the potential for capital appreciation over the
medium to long term.
Investment Strategy
The Fund invests primarily in selected small and medium sized
companies listed on the Main Market and ACE Market of the Bursa
Malaysia with market capitalization of not more than RM750 million
which have the potential for capital appreciation over the medium
to long term. Criteria for selection include companies that operate in
the high growth sector, which are expected to register high earnings
per share growth and have sound management.
59
Asset Allocation

Min 40% Max 95% in stocks and shares of small and medium cap
companies.
 Min 5% Max 60% in liquid assets and short-term money market
investments.
59, 112
Benchmark
 60% of the performance of the FBM SmallCap Index.
 35% of the performance of the FBM Top 100 Index.
 5% of the 1-month fixed deposit rate of commercial banks.
59, 112
Principal risks of investing
in the Fund
The principal risks of investing in the Fund are market risk, individual
stock risk, liquidity risk and operational risk.
Investors’ Profile
The Fund is suitable for investors who:
 Seek medium to long term capital growth through investment in
small to medium sized companies;
 Are willing to accept higher level of risk in order to obtain higher
growth of their capital; and
 Have a medium to long term investment horizon.
Distribution Policy
It is not the main objective of the Fund to distribute income as the
main focus of the Fund is to secure capital growth in line with the
performance of the Fund’s benchmark. Income (if any) is expected
to be distributed at the Manager’s discretion, subject to the
approval from the Trustee.
Maximum Approved Fund Size
600 million Units
External Investment Manager
UOB-OSK Asset Management Sdn Bhd (219478-X)
Trustee
Malaysian Trustees Berhad (21666-V)
Launch Date
3 March 2004
Financial Year End
31 July
UIC as at LPD
243.77 million Units
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60
147
Master Prospectus 2011/2012
Further
details on
page :
AMB Enhanced Bond Trust Fund
Fund Category / Type
Bond Fund / Income and Growth Fund
Investment Objective of the
Fund
The objective of the Fund is to provide investors with a stable
income stream and an opportunity for capital appreciation over the
medium to long term horizon through investments in securities
issued by corporations, governmental and/or statutory bodies as
provided in this Master Prospectus.
61
Investment Strategy
The Fund seeks to achieve its objective through a policy of
diversified investment in convertible debt securities, redeemable
debt securities, government backed bonds/ securities, rated private
debt securities, money market instruments and equities.
61
Asset Allocation

Min 85% in fixed income securities
Max 15% in equities
 Min 2% in liquid assets
61, 113
Benchmark
 100% Quantshop MGS Medium Index.
61, 113
Principal risks of investing
in the Fund
The principal risks of investing in the Fund are market risk, individual
stock risk, credit/default risk, interest rate risk, liquidity risk and
operational risk.
Investors’ Profile
The Fund is suitable for investors who:
 Prefer a conservative investment approach but are willing to
exploit opportunities presented in the capital markets; and
 Possess an investment horizon in excess of 5 years .
Distribution Policy
Income (if any) is expected to be distributed annually at the 147, 148
Manager’s discretion, subject to the approval from the Trustee.
Maximum Approved Fund Size
500 million Units
External Investment Manager
CIMB-Principal Asset Management Berhad (304078-K)
Trustee
Malaysian Trustees Berhad (21666-V)
Launch Date
27 May 2003
Financial Year End
31 March
UIC as at LPD
50.37 million Units

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62
19
Master Prospectus 2011/2012
AMB Ethical Trust Fund
Further
details on
page :
Fund Category / Type
Equity Fund / Income and Capital Growth Fund
Investment Objective of the
Fund
To provide investors with income and capital growth for medium to
long term through investments that comply with ethical principles.
63
Investment Strategy
The Fund seeks to maximise total returns by providing investors
with income from high yielding securities and capital appreciation
through diversified investments mainly in equities listed in the Bursa
Malaysia that comply with ethical principles.
63
Asset Allocation
• 50% - 98% in equities
• 2 % - 50% in cash or bonds (or a combination of both)
65, 114
Benchmark
80% FBM EMAS Shariah Index + 20% KL Finance Index.
63, 114
Principal risks of investing
in the Fund
The principal risks of investing in the Fund are market risk,
individual stock risk, credit/ default risk, interest rate risk, liquidity
risk and operational risk.
Investors’ Profile
The Fund is suitable for investors who:
 Desire income and capital returns from the equity and bond
markets; and
 Would like to channel their resources to companies that
demonstrate socially responsible practices relating to the
environment and community.
Distribution Policy
Income (if any) is expected to be distributed annually at the
Manager’s discretion, subject to the approval from the Trustee.
Maximum Approved Fund Size
300 million Units
External Investment Manager
UOB-OSK Asset Management Sdn Bhd (219478-X)
Trustee
HSBC (Malaysia) Trustee Berhad (001281-T)
Launch Date
7 January 2003
Financial Year End
31 August
UIC as at LPD
57.63 million Units
Ethical Panel of Advisors
• Dato’ Seri Haji Arshad bin Haji Hashim (Chairman)
• Dato’ Noor Farida binti Mohd Ariffin
• Datuk Ibrahim bin Muhammad
20
AMB Client Services 03-2034 0800
65
147
Master Prospectus 2011/2012
Further
details on
page :
AMB Lifestyle Trust Fund Today
Fund Category / Type
Fixed Income Fund / Income Fund
Investment Objective of the
Fund
To seek regular income stream and moderate capital growth
through investments into fixed income securities and dividend
yielding equities.
67
Investment Strategy
To achieve its investment objective of a regular income stream, the
Fund will allocate at least 80% of its assets into the Malaysian fixed
income markets with the balance in dividend yielding equities to
enhance the returns for the portfolio. To reduce the volatility of our
equity investments, we may diversify by investing in both the local
and Asian markets. The equity portion can and will be reduced to
zero point in times of market uncertainties. Futures may also be
employed from time to time to hedge the portfolio.
67
In formulating the investment strategy, the Manager will consider
the following to determine the portion of investment to be in
foreign markets (within permitted amounts):
(a) Comparison of economic outlook of Asian economies against
the Malaysian economy to determine the growth prospects and
economic cycles.
(b) Assess country, political and social risks.
(c) Determine liquidity flows in all the Asian countries.
(d) Identify risks or attractions specific to countries/region.
(e) Assess currency risks.
Asset Allocation
 Max 20% in equities
 Min 80% Max 100% in bonds and money market
 Min 2% in liquid assets
67, 115
Benchmark
 80% of the Quantshop MGS Medium Index
 20% of the performance of the FBM Emas Index.
67, 115
Principal risks of investing
in the Fund
The principal risks of investing are market risk, individual stock risk,
credit/default risk, interest rate risk, liquidity risk, operational risks,
currency risk and country risk.
Investors’ Profile
The Fund is suitable for investors who:Seek a defensive investment solution that comprises fixed income
instruments and a minor portion of equity; and
Seek returns that is well diversified across various asset classes.
Distribution Policy
Income (if any) is expected to be distributed annually at the
Manager’s discretion, subject to the approval from the Trustee.
Maximum Approved Fund Size
250 million Units
External Investment Manager
UOB-OSK Asset Management Sdn Bhd (219478-X)
Trustee
HSBC (Malaysia) Trustee Berhad (001281-T)
Launch Date
25 November 2004
Financial Year End
30 September
UIC as at LPD
12.62 million Units
AMB Client Services 03-2034 0800
67
147
21
Master Prospectus 2011/2012
AMB Lifestyle Trust Fund 2014
Fund Category/
Type
Balanced Fund / Growth Fund
Investment
Objective of the
Fund
To provide capital growth for investors through a well-diversified balanced portfolio
that is specially catered for a 10 years investment period. The Fund, over its investment
period, shall progressively adopt more defensive investment strategies as the Fund
approaches closer to maturity.
Investment
Strategy
To achieve its investment objectives, the Fund will invest in Malaysian equities and fixed
income securities where appropriate. Foreign equities may be included to further
diversify the Fund. In formulating the investment strategy, the Manager will consider
the following to determine the portion of asset class to be in foreign investments
(within permitted amounts):(a) Comparison of economic outlook of Asian economies against the Malaysian
economy to determine the growth prospects and economic cycles for each country.
(b) Assess country, political, currency and social risks.
(c) Determine liquidity flows in all the Asian countries.
(d) Identify risks or attractions specific to countries/region.
Asset Allocation
Benchmark
Further
details on
page :
TAA 1
(23 December 2004 – 22 June 2007)
41% - 46% in equities
54% - 59% in bonds and money market
TAA 2
(23 June 2007 – 22 December 2009)
35% - 40% in equities
60% - 65% in bonds and money market
TAA 3
(23 December 2009 – 22 June 2012)
29% - 34% in equities
66% - 71% in bonds and money market
TAA 4
(23 June 2012 – 22 December 2014)
22% - 27% in equities
73% - 78% in bonds and money market
TAA 1
TAA 2
TAA 3
TAA 4
46% of the performance of the FTSE Bursa Malaysia EMAS Index
(FBM EMAS) + 54% of the Quantshop MGS Medium Index. (23
December 2004 – 22 June 2007).
40% of the performance of the FBM EMAS + 60% of the Quantshop
MGS Medium Index. (23 June 2007 – 22 December 2009).
69
69
71, 116
69, 116
34% of the performance of the FBM EMAS + 66% of the Quantshop
MGS Medium Index (23 December 2009 – 22 June 2012).
27% of the performance of the FBM EMAS + 73% of the Quantshop
MGS Medium Index. (23 June 2012 – 22 December 2014)
71
Principal risks of The principal risks of investing are market risk, individual stock risk, credit/default risk,
investing in the interest rate risk, liquidity risk, operational risks, currency risk and country risk.
Fund
Investors’ Profile The Fund is suitable for investors who: • Seek an investment solution for a period of 10 years from the commencement date
of the Fund; and
• Seek returns that is well diversified across various asset classes and that would
automatically become more defensive over time.
Distribution
Policy
Income (if any) is expected to be distributed at the Manager’s discretion, subject to the
approval from the Trustee.
Maximum
Approved Fund
Size
250 million Units
22
AMB Client Services 03-2034 0800
147
Master Prospectus 2011/2012
External
Investment
Manager
UOB-OSK Asset Management Sdn Bhd (219478-X)
Trustee
HSBC (Malaysia) Trustee Berhad (001281-T)
Launch Date
25 November 2004
Financial Year
End
30 September
Tenure
10 years
Maturity Date
22 December 2014
UIC at LPD
4.81 million Units
AMB Client Services 03-2034 0800
23
Master Prospectus 2011/2012
AMB Dividend Trust Fund
Fund Category / Type
Equity Fund / Income and Growth Fund
Investment Objective of the
Fund
To provide investors with a regular income stream and to attain
medium-to-long-term capital appreciation through investing in high
(and potentially high) dividend yielding equities (including foreign
equities).
Investment Strategy
The Fund will invest primarily in high dividend yielding stocks both in
Malaysia and in Asian ex-Japan markets (the latter being subject to a
maximum of 30% of the Fund’s total NAV). The selection of
appropriate equities will be driven by the EIM internal screening
process whereby emphasis will be placed on sustainability of
dividends, price-to-earnings ratios, gearing levels, historical volatility
as well as liquidity.
Further
details on
page :
73
73
Where in the opinion of the EIM a defensive strategy is appropriate,
up to 30% of the Fund may be invested in Malaysian fixed income
instruments. For fixed income securities, the Fund will mainly invest
in fixed income securities carrying a minimum credit rating of
AA3/P1 (RAM or equivalent rating agencies) to provide investors
with a regular stream of income, while minimizing principal
volatility. The Fund’s equities investment will range from a minimum
of 70% to a maximum of 99.8%. Up to 30% of the Fund may be
invested in Malaysian fixed income securities should a defensive
strategy be appropriate.
Asset Allocation
Min 70% Max 99.80% in equities
Max 20% in listed REITs.
 Min 0.20% Max 30% in fixed income securities and cash

73, 117

Up to 30% of the Fund’s total NAV may be invested in Asian ex-Japan
markets and/or the EIM may choose to invest solely in the domestic
market.
Benchmark
70% of FBM KLCI + 30% of 12-month fixed deposit rate of
commercial banks.
73. 117
Principal risks of investing
in the Fund
The principal risks of investing are market risk, individual stock risk,
credit/default risk, interest rate risk, liquidity risk, operational risks,
currency risk and country risk.
74
Investors’ Profile
The Fund is suitable for investors with the following profile: Conservative and prefers receiving regular and steady income in
the form of distributions; and
 Moderate risk appetite.
Distribution Policy
Income (if any), shall be distributed semiannually or annually at the
discretion of the Manager, subject to the approval from the Trustee.
Maximum Approved Fund Size
800 million Units
External Investment Manager
HwangDBS Investment Management Berhad (429786-T)
Trustee
HSBC (Malaysia) Trustee Berhad (001281-T)
Launch Date
6 June 2006
Financial Year End
30 April
UIC as at LPD
80.49 million Units
24
AMB Client Services 03-2034 0800
147, 148
Master Prospectus 2011/2012
1.2 General Information on Shariah Funds
Further
details on
page :
AMB Dana Yakin
Fund Category / Type
Equity Fund / Growth Fund (Shariah)
Investment Objective of the
Fund
To achieve a steady capital growth over the medium to long term
period through investments permissible under the Shariah
Principles.
76
Investment Strategy
The Fund investment strategy is to enhance the value of the Fund
through diversification of stocks that complies with Shariah
Principles within the permitted investment parameters.
76
Asset Allocation
• Min 40% to Max 90% in Shariah- compliant equities
• Min 10% in Shariah- compliant liquid assets
76, 118
Benchmark
• 90% of the FBM EMAS Shariah Index.
• 10% of the 1-month GIA rates of commercial banks.
76, 118
Principal risks of investing
in the Fund
The principal risks of investing in the Fund are market risk, individual
stock risk, liquidity risk, operational risk and non-shariah compliant
risk.
Investors’ Profile
The Fund is suitable for an investors who:
77
• are looking for investments in a diversified portfolio of assets that
conform to the Shariah Principles.
• have a medium to long-term investment horizon of 2 years and
above.
Distribution Policy
Income (if any) is expected to be distributed annually at the
Manager’s discretion, subject to the approval from the Trustee.
Maximum Approved Fund Size
1.2 billion Units
External Investment Manager
UOB-OSK Asset Management Sdn Bhd (219478-X)
Trustee
AmanahRaya Trustees Berhad (766894-T)
Launch Date
24 November 2000
Financial Year End
30 April
UIC as at LPD
89.44 million Units
Shariah Committee Members
147
Dato’ Dr. Abdul Halim bin Ismail (Chairman)
Datuk Dr. Syed Othman bin Syed Hussin Alhabshi
Prof. Dato’ Dr. Abdul Monir bin Yaacob
Prof. Dato’ Dr. Mahmood Zuhdi bin Hj. Ab Majid
AMB Client Services 03-2034 0800
25
Master Prospectus 2011/2012
AMB Dana Ikhlas
Further
details on
page :
Fund Category / Type
Balanced Fund/ Income and Growth Fund (Shariah)
Investment Objective of the
Fund
To attain a mix of regular income stream and possible capital growth
via investments in listed equities, Islamic debt instruments and other
assets that are permissible under the Shariah Principles.
78
Investment Strategy
The Fund invests in a wide range of assets that conforms to Shariah
Principles.
78
Asset Allocation
• Min 20% to Max 70% in Shariah- compliant equities
• Min 20% to Max 70% in Shariah- compliant debt instrument
• Min 2% in Shariah- compliant liquid assets
78, 119
Benchmark
• 60% of the FBM EMAS Shariah Index.
• 40% of the 12-month GIA rates of commercial banks.
78, 119
Principal risks of investing
in the Fund
The principal risks of investing in the Fund are market risk, individual
stock risk, credit/default risk, profit rate risk, liquidity risk,
operational risk and non-shariah compliant risk.
Investors’ Profile
The Fund is suitable for all investors who:
• Seek a fully managed and balanced portfolio of investments that
conforms to the Shariah Principles; and
• Has an investment horizon of 5 years or more.
Distribution Policy
Income (if any) is expected to be distributed annually at the
Manager’s discretion, subject to the approval from the Trustee.
Maximum Approved Fund Size
400 million Units
External Investment Manager
CIMB-Principal Asset Management Berhad (304078-K)
Trustee
AmanahRaya Trustees Berhad (766894-T)
Launch Date
17 September 2002
Financial Year End
30 November
UIC as at LPD
28.87 million Units
Shariah Committee Members
26
Dato’ Dr. Abdul Halim bin Ismail (Chairman)
Datuk Dr. Syed Othman bin Syed Hussin Alhabshi
Prof. Dato’ Dr. Abdul Monir bin Yaacob
Prof. Dato’ Dr. Mahmood Zuhdi bin Hj. Ab Majid
AMB Client Services 03-2034 0800
79
147
Master Prospectus 2011/2012
Further
details on
page :
AMB Dana Arif
Fund Category / Type
Bond Fund / Income Fund (Shariah)
Investment Objective of the
Fund
To provide a steady appreciation of the NAV of the Fund with a
regular flow of income through investments in debt securities that
are permissible under Shariah Principles.
Investment Strategy
The EIM will invest in a diversified portfolio of Islamic debt securities
in order to maximise return within acceptable risk parameters.
Diversification is to be done across sectors and issuers (to reduce
sector and credit risk), and across durations (to reduce price risk).
Depending on market conditions, the EIM will make the necessary
adjustments and invest in Islamic debt securities that best meet the
Fund’s objective. Preferred investments will be in Islamic debt
securities that are undervalued relative to their ratings, potential
credit rating upgrade candidates, and situational issues with
potential for improvement in the credit quality. In addition,
movements in the yield curve may uncover further opportunities.
Asset Allocation
Min 50% to Max 98% in Shariah- compliant debt securities
Min 2% to Max 50% in Shariah- compliant liquid assets
Benchmark
12-month GIA-rates of commercial banks.
Principal risks of investing
in the Fund
The principal risks of investing in the Fund includes market risk,
credit/default risk, profit rate risk, liquidity risk, operational risk and
non-shariah compliant risk.
Investors’ Profile
The Fund is suitable for investors who:
Prefer a consistent and steady appreciation in value through
investments in debt instruments permissible under Shariah
Principles; and
Posses investment horizon in excess of 5 years.
Distribution Policy
Income (if any) is expected to be distributed annually at the
Manager’s discretion, subject to the approval from the Trustee.
Maximum Approved Fund Size
1 billion Units
External Investment Manager
CIMB-Principal Asset Management Berhad (304078-K)
Trustee
AmanahRaya Trustees Berhad (766894-T)
Launch Date
27 April 2004
Financial Year End
31 May
UIC as at LPD
52.16 million Units
Shariah Committee Members
81
81
82, 120
81, 120
82
147
Dato’ Dr. Abdul Halim bin Ismail (Chairman)
Datuk Dr. Syed Othman bin Syed Hussin Alhabshi
Prof. Dato’ Dr. Abdul Monir bin Yaacob
Prof. Dato’ Dr. Mahmood Zuhdi bin Hj. Ab Majid
AMB Client Services 03-2034 0800
27
Master Prospectus 2011/2012
AMB Dana Nabeel
Further
details on
page :
Note: All information for AMB Dana Nabeel in this prospectus will supercede the information in
AMB Dana Nabeel’s prospectus dated 6 July 2011
Fund Category / Type
Money Market / Income (Shariah)
Investment Objective of the
Fund
The Fund aims to provide investors with high-level liquidity and
regular income stream to meet cash flow requirements based on
Shariah principles while maintaining capital preservation*.
121
Note : Distribution of income, if any, will be automatically re-invested into
the Unit Holder’s account. Refer to Section 9.3 on page 147 for further
details.
Investment Strategy
The Fund will invest at least 90% of the Fund’s NAV in Shariahcompliant deposits, Islamic money market instruments and
Shariah-compliant debentures with maturity of not more than 365
days and up to 10% of the Fund’s NAV may be invested in Shariahcompliant debentures which have a remaining maturity period of
more than 365 days but less than 732 days. The securities invested
in would have a minimum local credit rating of at least A3 (long
term rating) or P2 (short term rating) by RAM or equivalent rating
agencies.
84
Asset Allocation
• Minimum 90% in short term Shariah-compliant deposits, Islamic
money market instruments and Shariah-compliant debentures
with maturity of not more than 365 days.
85
• Up to 10% in short term Shariah-compliant debentures
exceeding 365 days but no longer than 732 days.
Benchmark
Bank Islam Mudharabah Overnight Rate.
84
Note: Investors are advised that the actual portfolio of the Fund at any
given time may consist of a mix of Shariah-compliants deposits, Islamic
money market instruments and Shariah-compliant debentures of varying
tenure and credit rating, as allowed by the Master Prospectus. Investors
are to note that the risk profile of the Fund’s portfolio may be higher than
the risk profile of the benchmark. Therefore, the Fund’s return can be
potentially higher than the benchmark commensurate with the risk profile
of the underlying assets of the Fund.
Principal risks of investing
in the Fund
The principal risks of investing in the Fund includes credit
issuer/default risk, interest rate risk and counterparty risk.
Investors’ Profile
The Fund is suitable for investors with the following profile: Seeking low risk investments that are in accordance with Shariah
Principles.
Seeking a Fund with regular income with potential yield to return
better than Bank Islam Mudharabah Overnight Rate.
Preferring short term investment horizon and wish to reduce
exposure in higher risk investments.
Ease of entry and exit.
85
*Capital preservation does not signify that the capital/ principal invested is guaranteed/ protected by any party.
28
AMB Client Services 03-2034 0800
Master Prospectus 2011/2012
Distribution Policy
Monthly, depending on the level of income (if any) the Fund
generates.
Maximum Approved Fund Size
400 million Units
External Investment Manager
Permodalan Nasional Berhad (38218-X)
Trustee
AmanahRaya Trustees Berhad (766894-T)
Launch Date
6 July 2011
Financial Year End
30 June
UIC as at LPD
(Not applicable, as the Fund was launched after LPD.)
Shariah Committee Members
147
Dato’ Dr. Abdul Halim bin Ismail (Chairman)
Datuk Dr. Syed Othman bin Syed Hussin Alhabshi
Prof. Dato’ Dr. Abdul Monir bin Yaacob
Prof. Dato’ Dr. Mahmood Zuhdi bin Hj. Ab Majid
Investment in the Fund is not the same as placement in a deposit with financial institutions
AMB Client Services 03-2034 0800
29
Master Prospectus 2011/2012
1.3 Fees and Charges
1.3.1 Charges
This table describes the charges that you may directly incur when you purchase or repurchase Units of the
Funds.
PNB SIF
1.5
AMBUTF
AMBBTF
AMBITF
AMBILTF
AMBETF
AMBEBTF
AMBSCTF
AMBLTF Today
AMBLTF 2014
AMBDTF
AMBDY
AMBDI
AMBDA
6.5
5.0
2.0
4.0
6.5
2.0
6.5
2.0
5.0
5.5
5.5
5.0
2.0
Repurchase Charge**
Manager/ Distribution
Channel
(% of NAV per Unit)
2.5% - 1st year
2.0% - 2nd year
1.5% - 3rd year
1.0% - 4th year
0.5% - 5th year
Nil – On Maturity Date or
upon early termination of
the Fund (Refer to page 133)
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
AMBDN
Nil
Nil
Funds
Maximum Sales Charge*
Manager/ Distribution
Channel
(% of NAV per Unit )
* The sales charge is negotiable, subject to the Manager’s discretion.
** The repurchase charge is reimbursed to the Fund.
30
AMB Client Services 03-2034 0800
Sales Charge under
EPF Members’
Investment Scheme
The sales charge for
investments under
the EPF Members’
Investment Scheme
shall not exceed 3%
of NAV per Unit, as
regulated by EPF.
Kindly refer to the
Manager for the
latest list of Funds
approved by EPF for
investment.
No sales charge for
EPF Investment
Scheme
Transfer
Charge
An
administrative
fee of RM25
will be charged
for each
transaction.
(Refer to
section 7.1.4
on page 134
for more
details).
Master Prospectus 2011/2012
Switching
The charges for switching are set out below:
To receipient
Bond/ Mixed
Money
Fund
Equity
Balanced
Switching
Asset
Market
From
RM25 per
RM25 per
RM25 per
Equity
Nil
transaction
transaction
transaction
Up to 5% of
RM25 per
Up to 1% of
Bond/ Mixed Asset
Nil
amount switched
transaction
amount switched
Up to 1% of
RM25 per
RM25 per
Balanced
Nil
amount switched
transaction
transaction
Up to 5% of
Up to 1% of amount Up to 5% of amount
Money Market
Not Applicable
amount switched
switched
switched
Distribution Units of conventional Funds cannot be switched into Shariah Funds. However the
principal amount of conventional Funds is allowed to be switched into Shariah Funds.
Notes: 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.
1.3.2 Other Administrative Charges
In addition to the charges expressly allowed to be charged directly by the Manager and/or the Trustee, the
Unit Holder may be required to pay a charge as allowed by Deeds, where applicable in respect of :
a) any document supplied to the Unit Holder at the Unit Holder’s request; or
b) bank charges, courier changes and any other relevant changes incurred for repurchase of Units.
c) any act of administrative nature carried out for the Unit Holder at the Unit Holder’s request.
1.3.3 Fees
This table describes the fees that you may indirectly incur when you invest in the Funds.
AMBUTF
1.00 - 1.50
Annual
Trustee Fee
(% p.a. of the
Fund)
[See Note 1]
Note 2
AMBBTF
0.75 - 1.50
Note 2
AMBITF
1.00 - 1.50
0.035
PNB SIF
1.00
Up to 0.08 *
Nil
AMBILTF
1.00
0.08 *
Nil
AMBETF
1.50
0.08 *
Nil
AMBDTF
1.50
Note 3
Nil
Funds
Annual
Management Fee
(% p.a. of the Fund)
[See Note 1]
#
Custodian Fee
(% p.a. of the
value of the stock
portfolio)
0.035
^
0.035
Ω
Nil
Fund Expenses
• the auditor’s fees, tax agents’
fee and other relevant
professional fees;
•the costs of printing &
distribution of annual and
interim reports, tax vouchers
and warrants.
• cost of modification of the
Deeds other than those for
the benefits of the Manager
and/or Trustee; and
AMB Client Services 03-2034 0800
31
Master Prospectus 2011/2012
Annual
Management Fee
(% p.a. of the Fund)
[See Note 1]
Funds
AMBEBTF
Bond Portion : 1.00
Equity Portion : 1.75
Annual
Trustee Fee
(% p.a. of the
Fund)
[See Note 1]
0.07 *
Custodian Fee
(% p.a. of the
value of the stock
portfolio)
Nil
• 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.
The Fund shall generally
comprise
of
bond
instruments thereby its’
base annual management
fee is the standard 1.0%
per annum.
AMBSCTF
1.50
0.07 *
Nil
AMBLTF
Today
1.00 - 1.10
Note 3
Nil
Note 3
Nil
AMBLTF
2014
Fund Expenses
These costs have been factored
into the quoted NAV per Unit
as they are related and
necessary to the business of
the Funds.
Bond Portion : 1.00
Equity Portion : 1.50
1.10 - 1.35
Bond Portion : 1.00
Equity Portion : 1.50
AMBDY
1.50
0.08 *
Nil
AMBDI
1.10 - 1.35
0.08 *
Nil
Bond Portion : 1.00
Equity Portion : 1.50
AMBDA
AMBDN
Profit sharing scheme of 0.07 *[subject to a
15:85
of
the
Net minimum fee of
Investment income of the
RM18,000 per
Fund
between
the annum calculated
Manager and the Unit
on daily basis
Holder respectively.
(inclusive of
custodian fee)]
Up to 0.50
Up to 0.08 *
Nil
Nil
^ subject to a minimum of RM40,000 per annum and a maximum of RM120,000 per annum.
Ω subject to a minimum of RM60,000 per annum and a maximum of RM150,000 per annum.
# up to a maximum NAV of RM100 million and thereafter at a rate of 0.01% per annum.
* subject to a minimum fee of RM18,000 per annum calculated on a daily basis.
Note 1: Annual Management Fee and Annual Trustee Fee are calculated on a daily basis before deducting
the fees for the day.
Note 2:
Size of Fund
First RM20 million
Next RM20 million
Next RM20 million
Next RM20 million
Next RM20 million
Any amount in excess of RM100 million
32
AMB Client Services 03-2034 0800
Rate per annum of the NAV of the Fund (%)
0.06
0.05
0.04
0.03
0.02
0.01
Master Prospectus 2011/2012
Note 3: If the Fund is invested locally only, the rate is 0.07% per annum (including local custodian fee) on NAV
of the Fund, (before deducting annual management fee and Trustee fee for the day), calculated on a
daily basis, subject to a minimum fee of RM18,000 per annum.
OR
If the Fund is invested locally and abroad, the rates are 0.07% per annum on the local NAV of the Fund
(including local custodian fee) and 0.07% per annum on the foreign NAV of the Fund (excluding foreign
custodian fee), (before deducting annual management fee and Trustee fee for the day), calculated on a
daily basis, subject to a minimum fee of RM18,000 per annum.
There are fees and charges involved and investors are advised to consider them before investing in the Funds
1.4 Other Information
The following section is a summary of the conditions on the investment transactions with AMB that
investors must take into consideration before making their decision.
Kindly note that investment via EPF Members’ Investment Scheme is subject to EPF’s terms and
conditions and investors are encouraged to check on the related details accordingly.
1.4.1 Information on Transactions
Minimum Initial Investment
Minimum
Initial
Investment
AMBUTF,
AMBBTF,
AMBITF,
AMBEBTF and
AMBDA
AMBILTF, AMBETF,
AMBSCTF, AMBLTF
Today, AMBLTF
2014, AMBDTF,
AMBDY and AMBDI
RM1,000.
(inclusive of
sales charge).
RM500.
(inclusive of sales
charge).
PNB SIF
AMBDN
Individual
Nonindividual
Individual
Nonindividual
RM10,000
(inclusive of
sales charge)
RM50,000
(inclusive of
sales charge)
RM5,000
RM50,000
Note:
For investment under the EPF Members’ Investment Scheme, the minimum investment is RM 1,000 (inclusive
of sales charge) or the minimum initial investment of the respective Funds, whichever is higher.
Minimum Additional Investment
Minimum
Additional
Investment
AMBUTF, AMBBTF,
AMBITF AMBILTF,
AMBETF, AMBSCTF,
AMBLTF Today,
AMBLTF 2014,
AMBDTF, AMBDY
and AMBDI
RM100.
(inclusive of sales
charge).
PNB SIF
AMBEBTF
and AMBDA
RM500.
(inclusive of
sales charge).
Individual
NonIndividual
RM1,000
(inclusive of
sales charge)
RM5,000
(inclusive of
sales charge)
AMBDN
Individual
Nonindividual
RM1,000
RM10,000
Note:
For investment under the EPF Members’ Investment Scheme, the minimum investment is RM 1,000 (inclusive
of sales charge) or the minimum additional investment of the respective Funds, whichever is higher.
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Others
Purchase
and
Repurchase
of Units
The investment amount payable by the Unit Holders for the purchase of a Unit is calculated at
NAV per Unit. In addition to the investment amount, a sales charge will also be imposed to the
Unit Holders except for AMBDN. For PNB SIF, only Units repurchased by the Manager may be
resold based on the NAV per Unit at that point in time. (Refer to section 8.2.1 on page 139 for
more details)
For investors investing under the EPF Members’ Investment Scheme, a service charge of up to 3%
of NAV per Unit is levied as regulated by EPF except for AMBDN.
The NAV per Unit is computed on Forward Pricing basis and published daily in major newspapers
and on our website. The Manager has taken necessary procedures to ensure accuracy of
information of pricing sent to the Bernama and the respective newspapers. However, the
Manager would not be held liable for the errors or omission of the printed information on the
prices of its Funds in the newspapers. (Refer to section 8.2.2 on page 140 for more details)
The repurchase amount payable to the Unit Holders for the repurchase of a Unit is calculated at
NAV per Unit.
(Refer to section 8.2.1 on page 139 for more details)
Cooling-off
Period
The cooling-off period of any of the AMB Family of Funds is within 6 Business Days commencing
from the date of purchase i.e. the date on which the Manager receives the application form and
the investment amount.
Cooling-off
Right
The right given to an investor who is investing in any of the AMB Family of Funds for the first
time, save and except for a corporation or institution, a staff of that management company, and a
person registered with a body approved by the SC to deal in unit trusts.
Repurchase
Period
The Manager will pay the repurchase proceeds to Unit Holders within 10 days upon receipt of the
request to repurchase.
For AMBDN only:
For repurchase applications received before 10.30 a.m., repurchase monies will be paid the
following business day (T+1). In respect of any repurchase applications received after 10.30 a.m.,
the repurchase monies will be paid after two business days (T+2).
In the event of any technical difficulties beyond the Manager’s control or should the repurchase
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, repurchase monies
may be paid at any time not later than 10 days after receipt by the Manager of the request to
repurchase or such other period as may be permitted by the relevant authorities from time to
time.
Frequency
of
Repurchase
There is no restriction on the frequency of repurchase.
Repurchase
Charge
There is no charge applicable on repurchase for the Funds except for PNB SIF. For more details on
the repurchase charge of PNB SIF, please refer to section 7.1.2 on page 133 for more details.
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Minimum
Repurchase
amount
AMBUTF, AMBBTF, AMBITF,
AMBLTF Today,
AMBILTF, AMBETF,
AMBLTF 2014,
PNB SIF
AMBDN
AMBEBTF, AMBSCTF,
AMBDTF, and AMBDA
AMBDY and AMBDI
There is no minimum repurchase amount imposed on a Unit Holder. However, for partial
repurchase, the minimum balance of Units remaining in the account must satisfy the minimum
holdings requirement set out by the Manager for each Fund.
Minimum
Holdings to
Maintain
Account
The minimum balance of
Units remaining in the
account must always be 100
Units.
The minimum balance
of Units remaining in
the
account
must
always be 1,000 Units.
The minimum
balance of Units
remaining in the
account must
always be 10,000
Units for both
individual and
non- individual.
The
minimum
balance of Units
remaining in the
account
must
always be 1,000
Units
for
Individuals
and
5,000 Units for
Corporate
Institutions.
Note:
The Manager is allowed to close the Unit Holder’s account, at the Manager’s discretion, should
the balance in Unit Holder’s account fall below the minimum balance requirement.
Transfer of
Units
A Unit Holder may fully or partially transfer his Units in a Fund to another Unit Holder. Investors
should be mindful of the minimum holdings to maintain accounts.
Switching of
Units
Switching facility is available for all Funds. This facility enables Unit Holders to convert Units of
one Fund to Units of other Funds managed by the Manager subject to the conditions as
stipulated in section 8.3.5 on page 144. The minimum investment that can be switched per
transaction is 1,000 Units subject to the investment complying with the minimum
initial/additional investment of the switched Fund, as the case may be. Switching from a Shariah
Funds to a Conventional Fund is discouraged especially for Muslim Unit Holders.
Distribution Units of conventional Funds cannot be switched into Shariah Funds. However, the
principal amount of conventional Funds is allowed to be switched into Shariah Funds.
The Manager will ensure that the prices forwarded to the press for publication are accurate. However, the
Manager cannot be held liable for any error in prices finally published in the press. Investors may contact any
Distribution Branch to further confirm the Unit prices.
1.4.2
Special Benefit
Free Insurance Protection Coverage for PNB SIF
Eligible Unit Holders aged between 18 to 69 with a minimum investment of 10,000 Units at any point of time in
PNB SIF will be given free Group Personal Accident (GPA) Takaful. The sum insured would be RM1.00 for every
Unit held subject to a maximum coverage of RM100,000 per Unit Holder of the Fund.
Free Insurance Protection Coverage For AMBUTF and AMBBTF
Eligible Unit Holders aged between 18 to 69 years with a minimum investment of 10,000 Units of AMBUTF and
AMBBTF will be given free GPA insurance with Total Permanent Disability (TPD). This coverage provides
accident protection up to a maximum of RM10,000 per Unit Holder of either Funds.
(Refer to Chapter 3 for more details)
Free Insurance Protection Coverage For AMBETF, and AMBSCTF
Eligible Unit Holders of AMBETF and AMBSCTF will be given free GPA Insurance coverage. Unit Holders holding
a minimum of 2,000 Units and above will automatically be covered under the GPA insurance coverage.The sum
covered would be RM0.50 for every Unit held subject to a minimum investment of 2,000 Units and maximum
coverage of RM200,000. (Refer to Chapter 3 for more details.)
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Free Insurance Protection Coverage for AMBLTF 2014
Eligible Unit Holders of AMBLTF 2014 will be given free standard GPA insurance coverage. Unit Holders holding
a minimum amount of 2,000 Units and above will automatically be covered under the standard GPA insurance
for accidental death and TPD. The sum insured would be RM0.50 for every Unit held subject to a minimum
investment of 2,000 Units and maximum coverage of RM150,000. (Refer to Chapter 3 for more details).
Free Insurance Protection Coverage for AMBDTF
Eligible Unit Holders of AMBDTF will be given free GPA coverage. Unit Holders holding a minimum amount of
4,000 Units and above will automatically be covered under the GPA insurance for accidental death and TPD. The
sum insured would be RM0.25 for every Unit held subject to a minimum investment of 4,000 Units and
maximum coverage of RM200,000. (Refer to Chapter 3 for more details).
Free Takaful Insurance For AMBDY and AMBDI
Eligible Unit Holders of AMBDY and AMBDI will be given free GPA Takaful coverage. Unit Holders holding a
minimum of 2,000 Units and above will automatically be covered under GPA Takaful. The sum covered would
be RM 1,000.00 for every 2,000 Units held subject to a minimum investment of 2,000 Units and maximum
coverage of RM200,000 per Unit Holder. (Refer to Chapter 3 for more details).
The terms and conditions of the free takaful insurance scheme as administered by the Manager shall apply.
Please contact the Manager on the terms and conditions of the free takaful insurance.
1.4.3 Details of Deeds
Unit Holders may refer to the following Deeds for more specific information of the Funds, which are available
at the principal office of the Manager.
1.
Deed in relation to AMBUTF dated 6 March 1992.
First Supplemental Deed in relation to AMBUTF dated 23 August 1994.
Second Supplemental Deed in relation to AMBUTF dated 16 April 1999.
Third Supplemental Deed in relation to AMBUTF dated 7 June 1999.
Fourth Supplemental Deed in relation to AMBUTF dated 23 March 2000.
Fifth Supplemental Deed in relation to AMBUTF dated 8 February 2002.
Sixth Supplemental Deed in relation to AMBUTF dated 30 January 2003.
Seventh Supplemental Deed in relation to AMBUTF dated 12 September 2003.
Eighth Supplemental Deed in relation to AMBUTF dated 26 May 2005.
2.
Deed in relation to AMBBTF dated 14 September 1994.
First Supplemental Deed in relation to AMBBTF dated 16 April 1999.
Second Supplemental Deed in relation to AMBBTF dated 23 March 2000.
Third Supplemental Deed in relation to AMBBTF dated 28 May 2001.
Fourth Supplemental Deed in relation to AMBBTF dated 8 February 2002.
Fifth Supplemental Deed in relation to AMBBTF dated 12 September 2003.
Sixth Supplemental Deed in relation to AMBBTF dated 26 May 2005.
3.
Deed in relation to AMBITF dated 15 May 1996.
First Supplemental Deed in relation to AMBITF dated 16 April 1999.
Second Supplemental Deed in relation to AMBITF dated 18 August 1999.
Third Supplemental Deed in relation to AMBITF dated 23 March 2000.
Fourth Supplemental Deed in relation to AMBITF dated 13 February 2001.
Fifth Supplemental Deed in relation to AMBITF dated 8 February 2002.
Sixth Supplemental Deed in relation to AMBITF dated 12 September 2003.
Seventh Supplemental Deed in relation to AMBITF dated 26 May 2005.
4.
Deed in relation to AMBILTF dated 8 April 2002.
5.
Deed in relation to AMBSCTF dated 11 February 2004.
First Supplemental Deed in relation to AMBSCTF dated 26 May 2005.
6.
Deed in relation to AMBEBTF dated 7 May 2003.
First Supplemental Deed in relation to AMBEBTF dated 26 May 2005.
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7.
Deed in relation to AMBETF dated 4 December 2002.
8.
Deed in relation to AMBLTF Today dated 28 October 2004.
First Supplemental Deed in relation to AMBLTF Today dated 26 May 2005.
9.
Deed in relation to AMBLTF 2014 dated 28 October 2004.
First Supplemental Deed in relation to AMBLTF 2014 dated 26 May 2005.
10. Deed in relation to AMBDTF dated 2 May 2006.
11. Deed in relation to PNB SIF dated 7 March 2008.
12.
Deed in relation to AMBDY dated 25 October 2000
First Supplemental Deed in relation to AMBDY dated 12 September 2003
Second Supplemental Deed in relation to AMBDY dated 26 May 2005
Third Supplemental Deed in relation to AMBDY dated 13 August 2008
13.
Deed in relation to AMBDA dated 29 March 2004
First Supplemental Deed in relation to AMBDA dated 26 May 2005
Second Supplemental Deed in relation AMBDA dated 13 August 2008
14. Deed in relation to AMBDI dated 4 September 2002
First Supplemental Deed in relation to AMBDI dated 13 August 2008
15.
Deed in relation to AMBDN dated 26 April 2011
1.4.4 Investment via EPF Members’ Investment Scheme
EPF Members’ Investment Scheme
The Manager is a unit trust management company under the EPF Members’ Investment Scheme. For eligible
Funds, you may withdraw a portion of your EPF savings to invest in the Fund, which may provide you the
opportunity to reap capital growth, thus increasing the value of your EPF Account 1 Retirement Savings subject
to rules and regulations of the EPF Members’ Investment Scheme from time to time.
You may withdraw a portion of your EPF savings and invest in our Funds which are eligible under the EPF
Members’ Investment Scheme. Kindly contact the Manager to confirm which Funds are currently eligible for
investment via the EPF Members’ Investment Scheme. By investing some of your EPF savings in any of the
above-mentioned Funds, you could stand to maximise the value of your retirement savings over the long-term.
Upon reaching the age of 55, investment under EPF Members Investment Scheme will no longer be treated
under the EPF Members’ Investment Scheme. As such, Unit Holders’ investment status is to be changed to
cash plan and are allowed to withdraw their money at any Distribution Branch.
Kindly note that investment via EPF Members’ Investment Scheme is subject to EPF’s terms and conditions and
investors are encouraged to check on the related details accordingly.
1.4.5
Regular Savings Plan
For Maybank account holders, you have the opportunity to invest through standing instruction. This plan
makes regular savings easy and allows you to arrange transfers from your bank account to our Funds.
There are fees and charges involved and investors are advised to consider the fees and charges before
investing in the Funds.
Prospective Unit Holders should read and understand the contents of this Master Prospectus and if necessary,
consult your professional advisor. Unit prices and distributions payable, if any, may go down as well as up.
For information concerning certain risk factors which should be considered by prospective investors see “risk
factors” commencing on page 38.
Past performance of the Funds are not an indication of its future performance.
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2 Risk Factors
2.1
Risks of Investing in Unit Trusts
All investments carry some form of risk. Prior to investing one should consider the elements of risks associated
to the investments as the values of the investment could fluctuate due to these risks. Prospective investors
should consider the following risk factors in addition to the other information stated in the Prospectus:
General Risk
Market Risk
For a unit trust that has stocks or bonds in its portfolio, fluctuations in the market performance due to factors
such as fluctuation in interest rates, changes in economic climate, political and social environment that will
affect the stock or bond market as a whole, will also affect the value of investment either in a positive or
negative way.
Individual Stock Risk
The performance of a fund that invests in stocks is affected by every individual stock that the said fund has
invested in. The volatility of prices in each stock will affect the fund’s value daily.
Non-Compliance Risk
This is the risk that the manager and others associated with the scheme will not follow the rules set out in the
scheme’s constitution and internal policies, or the law that governs the scheme, or will act fraudulently or
dishonestly. However, this risk is greatly reduced via stringent internal controls and constant crossdepartmental checking employed by the manager. In addition, a yearly or any unscheduled internal audit
exercise will be conducted to check any compliance matters that might have been inadvertently overlooked by
compliance department. The presence of the trustee who has an oversight function over management of the
Funds will further add to the reduction of such risk.
Inflation Risk
Ideally the purpose of any investment is to secure returns that are greater than the inflation rate. While a fund
will constantly seek to maximise returns and exceed inflation rate, it may occasionally experience losses, which
result in returns that will not keep pace with inflation in the short run.
Liquidity Risk
The various securities that are purchased by a fund may encounter liquidity risk. Liquidity risk relates to the
fund’s ability to quickly and easily trade, at a reasonable price, in and out of positions. Should a fund comprise
a security that has become temporarily or permanently illiquid or difficult to sell, the fund manager may need
to sell the security at a discount to its fair value, which eventually affects the fund’s value.
Fund Management Risk
Performance of the fund depends on the experience, expertise, knowledge and investment techniques of the
fund manager. Poor management of a fund can cause considerable losses to the fund, which in turn may affect
the capital invested.
Operational Risk
Operational risk is the risk of loss due to the breakdown, deficiencies or weaknesses in the operational support
functions resulting in the operations; or internal control processes producing an insufficient degree of
customer quality; or internal control by the Company. Operational risk is typically associated with human
error, system failure, fraud and inadequate or defective procedures and controls.
Returns Not Guaranteed
As a result of market risks, the manager is unable to guarantee the distribution payout to unit holders or the
investment returns of the fund. However, the manager will take reasonable steps to ensure that this risk is
minimized through a prudent investment approach, which is centred on fundamental stocks and market
analysis.
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Loan Financing Risk
Investors are not advised to take end-financing to purchase units as they may be exposed to the inherent risk
of an increase in the interest rate which can affect investors’ loan repayment and the risk of having to provide
additional collateral only when units are used as collateral should unit prices fall.
Force Majeure Risk
The risk of exposure to force majeure events, where events are not within the control of Manager. This
includes terrorist attacks, politically instability, natural disasters and spread of disease where risks are
generally unforeseen and may have direct impact on the business.
Credit/Default Risk
Credit risk refers to the possibility that the issuer or financial institution of a securities/instruments/deposit
may not be able to make interest payments or repay the principal in a timely manner. This will translate to
losses that will reduce the value of a fund.
Please refer to Chapter 3 : Detailed Information on the Funds for information on fund specific risks and risk
management.
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.
Mitigation of Risk
The EIM will take reasonable steps to ensure that the above potential risks are managed by:(a)
actively monitoring the Fund’s asset allocation to ensure minimum impact from any adverse market
movements. They will ensure that the equities and fixed income securities are carefully selected
through site visits, fundamental analysis and portfolio diversification. In the case of fixed income
securities, the External Investment Manager will also focus on the credit quality of the fixed income
securities, which must be of an investment grade that complies with the respective Fund’s permitted
investments.
(b)
investing the Fund over a wide range of equities and fixed income securities of different companies
which provides diversification across a number of sectors and industries, minimising the risk not only of
any single company’s securities becoming worthless, but also of all holdings suffering uniformly adverse
business conditions. The External Investment Manager will seek to reduce all these risks associated with
the Fund by virtue of its experience, the analytical process and by structuring a broadly diversified
investment pool.
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3 Detailed Information on the Funds
3.1 Introduction
The key distinguishing features of the 15 Funds are shown below in order to assist investors in making an
informed judgement of the distinctive features of each Fund in relation to their personal investment and
financial goals.
PNB Structured Investment Fund
Introduction
The Fund has a 5-year tenure which expires on the Maturity Date. Upon the Maturity Date, all of the asset
classes will be liquidated and the proceeds of liquidation will be distributed to Unit Holders. During the tenure
of the Fund, only Units repurchased by the Manager may be resold based on the NAV per Unit at that point in
time.
Type of Fund
Income and Growth Fund
Category of Fund
Mixed Asset
Investment Objective
The Fund aims to provide investment opportunities that generate reasonable returns and growth over the
tenure of the Fund while endeavouring to provide capital protection to Unit Holders.
Any material change to the investment objective of the Fund would require Unit Holders’ approval.
Benchmark
The benchmark of the Fund is Maybank 12-month fixed deposit rate. The quoted fixed deposit rates are readily
available at any Maybank branch.
Investment Policy and Strategy
In selecting its investments, the Fund search for strong undervalued investment opportunities that shows
potential for long-term capital appreciation as well as income, through a selection process based on careful
analysis and valuation by the External Investment Manager’s team of analysts, who will then submit their
recommendations to the Investment Committee of the Fund for approvals.
To achieve this objective, the Fund will be investing in a diversified portfolio of Structured Products, PNB REIT,
cash equivalent instruments and any other investments permitted by the Deed.
Structured Products
Investments in Structured Products are in RM-denominated products that are principal protected upon
maturity. As for diversification purposes in Structured Products, the Fund will be investing in a portfolio of
Structured Products with exposure linked to one or more assets such as global equities, interest rates, indices
or any other underlying(s) as may be permitted under the Deed. The strategies employed by each of the
Structured Product will be different in nature, ensuring that the expected risk and return for the portfolio of
Structured Products is well-diversified.
PNB REIT
Investment in PNB REIT offers potential regular income and upside potential capital gain through exposure in
properties. PNB REIT has principal protection mechanisms in place. It is the intention of AMB and PHNB to list
PNB REIT on the Main Market of Bursa Malaysia before the maturity of the Fund on 5 July 2013, hence it may
be an opportunity for the Fund to be able to secure capital gains from the listing exercise.
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Other Permitted Investments
Investments that are permitted by the Deed include a diversified portfolio of listed securities, unlisted
securities and fixed income securities in Malaysia or any other Eligible Market. Stock selection for listed and
unlisted securities will be based on fundamental analysis of the companies, which include among others the
financial strength, management capability, prospects of the industry as well as its business cycle. The selection
of fixed income securities is based on the interest rate outlook, potential returns, tenure and yields at
reasonable levels of risks.
Cash Equivalent Instruments
To meet liquidity requirements, the Fund will also be investing in cash equivalent instruments.
The asset allocation for the Fund is as follows:




Up to 80% of the Fund’s NAV may be invested in Structured Products; and
Up to 50% of the Fund’s NAV may be invested in PNB REIT; and
Up to 80% of the Fund’s NAV may be invested in any Other Permitted Investments which include a
diversified portfolio of listed securities, primarily on the Bursa Malaysia, unlisted securities and fixed
income securities; and
A minimum of 2% of the Fund’s NAV will be invested in cash equivalent instruments and money market
instruments to provide for liquidity purposes.
In the overall management of the Fund, active asset allocation strategies will be employed, whereby the Fund
will actively manage the distribution of capital between the different assets in order to reduce the adverse
effects of downturns and capitalise on upturns, to enable the Fund to pay out competitive returns to investors.
The Fund will adopt an active investment strategy for each asset class and ensure that the portfolios of each
asset class will be well-diversified at all times. The decision to rebalance the portfolios of any of the asset
classes will take into account analysis and considerations on the prevailing market and economy outlook,
valuations and liquidity requirements.
Illustration of the structure of PNB SIF
Unit Holders
Investment in PNBSIF
Distribution to Unit Holders
PNB SIF
Trustee’s fee
Act on behalf of Unit Holder
Manager’s fee
Management Services
AMB(Manager)
Interest
Income
from cash
equivalent
instruments
Investment
Management
and other
related services
Management
fee
Investment
Committee
Annual coupon payment
and capital gain derived
from the Structured
Products (if any)
Capital gain and
dividend
income
PNB (Investment Manager)
Investment in cash
equivalent instruments
ART
(Trustee)
PNB REIT
Structured
Products
Other Permitted
Investments
Distributable income
from PNB REIT
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Policy on Active and Frequent Trading of Securities
The Fund is actively managed, and the frequency of trading of securities is dependent on the objective of the
Fund and available market opportunities.
Temporary Defensive Positions
When deemed appropriate and for the benefit of the Fund, the EIM may take temporary defensive positions in
dealing with adverse market, economic, political and other conditions, that may be inconsistent with the
Fund’s principal strategy. The temporary defensive positions may involve the Fund holding only cash or cash
equivalents.
Capital Protection Mechanism
The Fund is not a Capital Protected Fund but it has a capital protection mechanism embedded in its
structure.
In this part of the Master Prospectus, details are provided on how the capital protection features of the Fund
work and the circumstances under which the capital protection can be exercised.
The Fund’s portfolio is structured to ensure that your capital can be preserved through investments in a
combination of Structured Products and PNB REIT whilst capitalizing on the returns derived from investing in
PNB REIT as well as the potential returns of investing in Structured Products derived from exposure to the
performance of the underlying asset(s).
The Fund’s capital protection mechanism is structured in the following manner:
(i)
Via Structured Products (which have been issued in accordance with such relevant regulatory
requirements as may be imposed by the SC and Bank Negara Malaysia) whereby any principal invested in
the Structured Products is protected at maturity.
Principal protection may be sought through financial instruments purchased by the issuer which the
issuer considers appropriate for protecting the principal invested in the Structured Products and such
financial instruments may in turn be managed under Dynamic Investment Allocation Mechanism
(DIAM).
The financial instruments could take the form of money market instruments (which generate income
on a short term low risk basis) and/or fixed income instruments (which are bought at a discount to
provide a nominal value equivalent to the capital sought to be protected at maturity). Interest earned
or money not invested on those financial instruments may be used to purchase option(s) on the
underlying(s).
Under the DIAM, exposure is allocated between the underlying and risk free asset(s), depending on
the performance of the underlying. Should the underlying underperforms, more exposure is then
allocated to the risk free asset(s).
(ii) PNB REIT’s capital protection mechanism:The Fund will also be investing in units of PNB REIT which offer potential regular income and upside
potential through exposure in properties. PNB REIT has principal protection features whereby its
properties have a buy-back option from the respective vendors to repurchase the properties at the
highest price offered by third party purchasers or the original purchase price plus capital expenditure
on the respective property, whichever is the higher, and subject to the REITs Guidelines.
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Potential Risks Associated with PNB SIF
The investment in PNB SIF, like other financial investments, involves a variety of significant risks. The specific
risks presented by a particular investment in PNB SIF necessarily depend upon the terms of the investment and
your circumstances. All investments in PNB SIF involve some combination of the following types of risk:
Counterparty Risk are the risks that DBMB or any other financial institution that PNB SIF may deal with, under
certain circumstances, fail to perform their obligations when due.
Market Risk is the risk that the value of an investment in PNB SIF will be adversely affected by fluctuations in
the level or volatility of or correlation or relationship between one or more market prices, rates or indices or
other market factors or by illiquidity in the market for the investment in PNB SIF or in a related market.
Structured Product Risk is the risk that the value of structured product will fluctuate and be dependant on
market forces for example, movement of the underlying asset, volatility of the underlying assets, interest rate
levels, the correlation of the underlying assets, the implied future direction of the underlying assets and other
such factors.
Currency Risk is the risk from investment returns in Structured Products linked to foreign underlying assets
which may be affected by fluctuations in currency exchange rates.
Liquidity Risk is the risk that due to prevailing market conditions it may not be possible to liquidate, nor to
assess a fair value of your position. In addition, you should be aware that the operation of exchange rules or
any power or system failure affecting electronic trading facilities may, in certain circumstances, impair or
prevent the Manager from liquidating or executing your investments in PNB SIF, thus increasing the likelihood
of loss.
Early Repurchase Risk is the risk that in the event of any redemption of the Structured Products prior to
maturity, the principal invested in the Structured Products is not protected. The principal invested in the
Structured Products is principal or capital protected only upon maturity.
Individual Asset Risk or Specific Risk is the risk that the volatility of prices in each asset will affect the Fund’s
valuation. The performance of the Fund is affected by every individual asset that the Fund has invested in.
Specific risks can be associated with management errors, shift in consumer taste, advertising campaign,
lawsuits and competitive industry conditions.
Legal Risk is the risk that in the event of any default in relation to an investment in PNB SIF by one party, the
enforcement by other party of its rights against the defaulting party will be subject to the provisions in the
documentation for the investment in PNB SIF, the choice of governing law and the choice of jurisdiction. Legal
proceedings to enforce ones rights may be costly and time consuming and the final court judgment or order
may not fully compensate the non-defaulting party fully for the losses or damages suffered by it.
Prepayment & Commitment Risk is the risk that if an investment in PNB SIF is structured to be held to
maturity, early repurchase (other than by way of exercise of call or put, if any) will be at the Manager’s
discretion. As such, you should be prepared to commit your funds for the entire tenure of the investment in
PNB SIF. Certain investments in PNB SIF may also contain the Manager’s right to call the investment in PNB SIF
prior to maturity date. This right to call the investment in PNB SIF shall only be exercised by the Manager in
accordance with the terms specified. The amount to be received by you in the event of such early call shall be
as specified in the product documentation.
Funding Risk is the risk that, as a result of mismatches or delays in the timing of cash flows due from or to you
under investments in PNB SIF or related hedging, trading, collateral or other transactions, you will not have
adequate cash available to fund current obligations.
Operational Risk is the risk of loss arising from inadequacies in, or failures of, our internal procedures and
controls for monitoring and quantifying the risks and contractual obligations associated with investments in
PNB SIF.
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Mitigation of Risk
The External Investment Manager will take reasonable steps to ensure that the above potential risks are
managed by :
a)
Despite selecting Structured Products which are capital protected at maturity, the Fund is still exposed to
counter party risk. This risk is managed through careful choice of the issuer where the criteria of financial
strength as well as the credit rating of the issuer must be met. The credit rating of the issuer is
continuously monitored through assessments of the counterparty’s shareholders’ funds, profitability,
capital adequacy ratio and ratings. In the event the credit rating of the issuer is downgraded to below an
acceptable level, the Fund would adhere to the prevailing requirements of the Guidelines, as well as
endeavour to eliminate its exposure at the best price possible.
b) adopting an active portfolio rebalancing strategy at the Fund level and in the portfolios of structured
products and equity. The rebalancing strategy varies depending on the expected risk and return on the
securities invested and changes in the market.
c)
actively monitoring the Fund’s asset allocation to ensure minimum impact from any adverse market
movements and the equities and fixed income securities are carefully selected through site visits,
fundamental analysis and portfolio diversification via active management of the Fund. In the case of fixed
income securities, the External Investment Manager will also focus on the credit quality of the fixed
income securities, which must be of an investment grade that complies with the respective Fund’s
permitted investments.
d) investing the Fund over a wide range of equities and fixed income securities of different companies which
provides diversification across a number of sectors and industries, minimising the risk not only of any
single company’s securities becoming worthless, but also of all holdings suffering uniformly adverse
business conditions. The External Investment Manager will seek to reduce all these risks associated with
the Fund by virtue of its experience, the analytical process and by structuring a broadly diversified
investment pool.
e)
ensuring that its investment recommendations to the Investment Committee of the Fund always adheres
to the Fund’s investment objectives and investment restrictions and limits.
Detailed Information on the Investments of PNB SIF
Structured Products
The Structured Products offer principal or capital protection at maturity with the potential upside exposure
linked to one or more assets such as global equities, commodities, currencies interest rates, indices or any
other underlying(s) approved by the Investment Committee.
Principal protection may be provided through the purchase of financial instruments which the issuer considers
appropriate for protecting the principal invested in the Structured Products and such financial instruments
may in turn be managed under DIAM. Principal invested in the Structured Products is protected if the
Structured Products are redeemed on the maturity date of the Structured Products.
The Fund will adopt an active trading strategy in the portfolio of Structured Products, whereby the Investment
Manager has the option to increase or decrease the Fund’s allocation in Structured Products, taking into
account analysis and considerations on the prevailing market and economy outlook, valuations and liquidity
requirements. Investors should note that under this active asset allocation strategy, not all Structured Products
invested into by the Fund may necessarily be held to maturity, and Structured Products not held to maturity
will not be subject to principal protection.
DBMB, a licensed bank incorporated in Malaysia, is an issuer of the Structured Products for PNB SIF.
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About DBMB
DBMB began its history in Malaysia as far back as 1967. Prior to 1994, DBMB had been present in Malaysia as a
branch of Deutsche Bank AG. Following changes to the banking industry, DBMB was incorporated under the
Companies Act 1965 on 22 August 1994 as a public company. It obtained a Certificate of Commencement of
Business from the Registrar of Companies, Malaysia on 14 September 1994. Since then, it has significantly
expanded its activities in Malaysia to serve domestic and international clients.
DBMB is a licensed institution as defined in the BAFIA and obtained a license to carry on banking business in
Malaysia from the Minister of Finance, Malaysia on 1 October 1994. It is principally engaged in the activities of
banking and related financial services and is regulated by Bank Negara Malaysia. DBMB is a wholly-owned
subsidiary of Deutsche Bank AG, a banking institution and stock corporation incorporated under the laws of
Germany.
DBMB has received awards for being lead managers of bond issues in both the local and foreign markets.
DBMB is recognised as a significant player in providing quality and innovative investment solutions. DBMB’s
license by Bank Negara Malaysia to carry on the banking business allows DBMB amongst others, to execute
derivative transactions. The respective long and short term general bank ratings of AA1 and P1 with stable
outlook, accorded to DBMB by RAM was reaffirmed by RAM in October 2010.
The Board of Directors
The members on the Board of Directors of DBMB as of LPD are as follows:
Tun Mohamed Dzaiddin bin Haji Abdullah (Chairman & Independent Non-Executive Director)
Dato’ Ahmad Johari bin Abdul Razak (Independent Non-Executive Director)
Dato’ Mohamed Nizam bin Abdul Razak (Non-Independent Non-Executive Director)
Stefan Ulrich Dietmar Boecker (Non-Independent Non-Executive Director)
Mr. Raymond Yeoh Cheng Seong (Non-Independent Executive Director & Chief Executive Officer)
Mr. Ng Soon Lai @ Ng Siek Chuan (Independent Non-Executive Director)
Mr. Richard Anthony Yacenda Jr. (Non-Independent Non-Executive Director)
Summary of Financial Position
The following is a summary of the past performance of DBMB based on audited accounts for the last 3 years:
Year Ended 31 December
Paid-up Share Capital
Shareholders’ Funds
Turnover
Pre-tax Profit
Post-tax Profit
2010
(RM’000)
173,599
1,341,127
310,212
188,155
140,832
2009
(RM’000)
173,599
1,189,540
254,042
145,388
109,992
2008
(RM’000)
173,599
1,077,481
280,306
194,682
151,770
Rating of DBMB
The respective long and short-term general bank ratings of AA1 and P1 with stable outlook, accorded to DBMB
by RAM was reaffirmed by RAM in October 2010.
Long Term Ratings Definition
AA1 High safety for timely payment of interest and principal.
Short Term Ratings Definition
P1 Very strong safety with regard to timely payment on the instrument.
Units not obligation of DBMB
DBMB is an issuer of the Structured Products. The Units are not obligations of DBMB or any other entity within
the Deutsche Bank group.
Maturity of the Fund
PNB SIF will mature on 5 July 2013.
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The Fund shall be terminated on the Maturity Date and all Units held by the Unit Holders will be redeemed.
The NAV per Unit will be calculated by dividing the NAV of the Fund by the Units in Circulation. No repurchase
charge will be imposed on maturity. The net proceeds will be paid to Unit Holders within 2 months after the
Maturity Date.
Tax Exemption
PNB SIF has been granted income tax exemption pursuant to Section 127(3A) of the Malaysian Income Tax Act,
1967 (MITA) and withholding tax exemption pursuant to Section 127(3A) of the MITA in respect of
distributions made by PNB REIT.
Approved Fund Size
The approved fund size of the Fund is 3 billion Units.
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AMB Unit Trust Fund
Introduction
AMBUTF is an equity fund that consists of a diversified portfolio of blue chip and high growth stocks listed on
the Bursa Malaysia. By investing in a diversified portfolio of blue chip and high growth stocks in Malaysia,
AMBUTF provides a better spread of investments than could be achieved by investors with a small amount of
money to invest.
Type of Fund
Category of Fund
Growth Fund
Equity Fund
Investment Objective
To achieve a steady long-term income and capital growth through a diversified portfolio of larger capitalisation
equity investments.
Any material change to the investment objective of the Fund would require Unit Holders’ approval.
Benchmark
The performance of AMBUTF will be benchmarked against 90% of the performance of the FBM KLCI and 10%
of the 1-month fixed deposit rate of commercial banks, which are obtainable from the Bursa Malaysia website
and the Bank Negara website respectively.
Investment Policy and Strategy
AMBUTF invests primarily in blue chips and high growth stocks that can increase the potential for better longterm returns by focusing on corporations with the following characteristics:
Industry leader, good earnings track record, potential strong growth and strength of management. AMBUTF
invests largely in companies with market capitalisation of more than RM700 million.
AMBUTF’s policy and strategy is to concentrate on quality listed equities that can increase the potential for
better long-term returns, by focusing on securing capital growth for Unit Holders, with income considered
incidental to the investment process. The capital growth is achieved through a diversified portfolio of equity
investment in larger capitalised stocks with prime focus on main board and liquid stocks.
The investment process for unlisted securities is similar to the process used for the listed securities. Decision
will be made after thorough assessment on the companies, using in-house fundamental research supported by
external research and companies’ prospectuses. The main focus would be on companies, which are industry
leaders, with good earnings track record, potential strong growth based on good medium to long-term
earnings visibility, quality management as well as good corporate governance. The process also involves
constant monitoring of the current investment to ensure that it complies with the objectives of the Fund.
Under normal circumstances, the Fund will endeavour to be fully invested in Malaysian equities, unless the
equity market outlook is less attractive.
The EIM may invest up to 10% of the Net Asset Value of the Fund in securities that are not traded in or under
the rules of an Eligible Market.
The asset allocation between the various investment assets referred to above and the decision to invest, sell or
trade is based on the decision of the External Investment Manager who will adopt an active fund management
approach.
The asset allocation for the Fund is as follows:
• Min 40% Max 90% in equities
• 10% in liquid assets
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Policy on Active and Frequent Trading of Securities
The Fund is actively managed and the frequency of trading of securities is dependent on the objective of the
Fund and available market opportunities.
Temporary Defensive Positions
When deemed appropriate and for the benefit of the Fund, the External Investment Manager may take
temporary defensive positions in dealing with adverse market, economic, political and other conditions, that
maybe inconsistent with the Fund’s principal strategy. In this regard, the Fund may hold cash at higher levels
than what is prescribed or cash equivalent instruments as the Fund’s only asset.
Potential Risks Associated with AMBUTF
Market Risk
This is fluctuation in the market performance due to factors such as fluctuation in interest rates, and changes
in economic climate, political and social environments that will affect the stock market as a whole.
Individual Stock Risk
AMBUTF is subject to the volatility of prices in the share market. The volatility of prices in each stock will affect
the Fund’s value daily. The performance of individual stocks, which make up the portfolio, will fluctuate
according to changes in the market value of the investments. The fluctuations can be significant in the shortterm. This accounts for the market risk when investing in this Fund. However, this impact is minimised through
portfolio diversification.
Liquidity Risk
Liquidity risk is the risk that the security/instrument invested in cannot be readily sold and converted into cash.
This can occur when trading volume for the security is low and/or when there is a lack of demand for the
security. In managing liquidity risk, the Fund will limit its exposure to instruments, which are deemed less
liquid.
Operational Risk is the risk of loss to the unit holder arising from inadequacies in, or failures of, our internal
procedures and controls for monitoring and quantifying the risks and contractual obligations associated with
investments in AMBUTF.
Mitigation of Risk
The External Investment Manager will take reasonable steps to ensure that the above potential risks are
managed by:
(a)
actively monitoring the Fund’s asset allocation to ensure minimum impact from any adverse market
movements. They will ensure that the equities are carefully selected through site visits, fundamental
analysis and portfolio diversification.
(b)
investing the Fund over a wide range of equities of different companies which provides diversification
across a number of sectors and industries, minimising the risk not only of any single company’s
securities becoming worthless, but also of all holdings suffering uniformly adverse business conditions.
The External Investment Manager will seek to reduce all these risks associated with the Fund by virtue
of its experience, the analytical process and by structuring a broadly diversified investment pool.
Approved Fund Size of AMBUTF
The approved fund size for AMBUTF is 1.5 billion Units.
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AMB Balanced Trust Fund
Introduction
AMBBTF aims to provide the investor with a broad exposure to different asset classes including shares with
less fluctuation in value and fixed income securities. This is a growth and income Fund that pursues steady
income and long-term growth through diversified investment in equities, bonds, convertibles, warrants and
short-term money market instruments.
Type of Fund
Growth and Income Fund
Category of Fund
Balanced Fund
Investment Objective
To provide a balance between income and long term capital appreciation.
Any material change to the investment objective of the Fund would require Unit Holders’ approval.
Benchmark
The performance of AMBBTF will be benchmarked against 50% of the performance of the FBM KLCI and 50%
of the Quantshop MGS Medium Index. These are obtainable from the Bursa Malaysia website and the
Quantshop website at www.quantshop.com respectively.
Investment Policy and Strategy
AMBBTF would focus on attaining a balance between long-term income and capital growth. It would invest
partly in equities and partly in fixed income securities. AMBBTF’s strategy provides a careful selection of
quality listed equities and listed/unlisted bonds, carrying at least A3 rating by RAM or any other similar rating
agency.
The investment process for unlisted securities is similar to the process used for the listed securities. Decisions
will be made after thorough assessment of the companies, using in-house fundamental research supported by
external research and companies prospectuses.
Investment in securities involves an analysis of the general economic and market conditions. With an approach
that considers the risk return tradeoff, AMBBTF focuses on securities that would deliver favorable return in
light of the risks.
Equities
AMBBTF invests in potentially high yielding blue-chip stocks, aiming to increase long-term returns by focusing
on corporations with good earnings track records, sound management and strong growth potential. AMBBTF
aims to increase long term returns on stocks by focusing on corporations with good earnings track record,
sound management and having reasonable growth potential.
Fixed Income
AMBBTF invests in a variety of fixed interest investments. They range from investments in high quality, shortterm government and corporate debt securities and money market instruments to longer-dated government
and corporate bonds. AMBBTF balances its investments between potentially high yielding share investments
and lower risk fixed interest investments. Specific investments are chosen, mainly those that offer good
potential for income and growth. The External Investment Manager will change the Fund’s asset allocation mix
depending on the prevailing economic conditions and market outlook for both equity and bonds. This strategy
aims to reduce risk and achieve consistency of returns.
The Fund invests in a variety of fixed income instruments, ranging from high quality, short-term government
and corporate debt securities and money market instruments to longer dated government and corporate
bonds. It considers obligations with a more favorable or improving credit or industry outlook that provide the
potential for capital appreciation.
The Fund endeavours to create a prudent mix of primarily equities and fixed income securities which is in line
with the Fund’s objective.
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The asset allocation for the Fund is as follows:
• Min 20% Max 60% in equities
• Min 20% Max 60% in fixed income securities
Min 2% in liquid assets
Policy on Active and Frequent Trading of Securities
The Fund is actively managed and the frequency of trading of securities is dependent on the objective of the
Fund and available market opportunities.
Temporary Defensive Position
When deemed appropriate and for the benefit of the Fund, the EIM may take temporary defensive positions
which may be inconsistent with the Fund’s principal strategy in attempting to respond to adverse market
conditions, economic, political and other conditions. In this regard, the Fund may hold cash or cash equivalent
instruments as the Fund’s only asset.
Potential Risks Associated with AMBBTF
Market Risk
This is fluctuation in the market performance due to factors such as fluctuation in interest rates, and changes
in economic climate, political and social environments that will affect the stock or bond market as a whole.
They will also affect the value of investment either in a positive or negative way.
Individual Stock Risk
AMBBTF is subject to the volatility of prices in the share market. The volatility of prices in each stock will affect
the Fund’s value daily. The performance of individual stocks, which make up the portfolio, will fluctuate
according to changes in the market value of the investments. The fluctuations can be significant in the shortterm. This accounts for the market risk when investing in this Fund. However, this impact is minimised through
portfolio diversification.
Credit/Default Risk
AMBBTF invests in fixed income securities, so its portfolio is subject to credit risk. This is the risk that the issuer
of the security may default and not be able to make timely principal and interest payments on the security.
The lower-rated corporate debt securities will normally have greater risk of defaults.
Interest Rate Risk
Fixed income securities are particularly sensitive to movements in interest rates. When interest rates rise, the
value of fixed income securities falls and vice versa, thus affecting the NAV of the Fund. Furthermore, fixed
income securities with longer maturity and lower yield coupon rates are more susceptible to interest rate
movements.
Liquidity Risk
Liquidity risk is the risk that the security/instrument invested in cannot be readily sold and converted into cash.
This can occur when trading volume for the security is low and/or when there is a lack of demand for the
security. In managing liquidity risk, the Fund will limit its exposure to instruments, which are deemed less
liquid.
Operational Risk
Operational risk is the risk of loss to the unit holder arising from inadequacies in, or failures of, our internal
procedures and controls for monitoring and quantifying the risks and contractual obligations associated with
investments in AMBBTF.
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Mitigation of Risk
The EIM will take reasonable steps to ensure that the above potential risks are managed by:
(a) actively monitoring the Fund’s asset allocation to ensure minimum impact from any adverse market
movements. They will ensure that the fixed income securities and equities are carefully selected through
company visits, fundamental analysis and portfolio diversification. In the case of fixed income securities,
the EIM will also focus on the credit quality of the fixed income securities, which must be of an investment
grade that complies with the respective Fund’s permitted investments.
(b) investing the Fund over a wide range of fixed income securities and equities of different companies which
provides diversification across a number of sectors and industries, minimising the risk not only of any single
company’s securities becoming worthless, but also of all holdings suffering uniformly adverse business
conditions.
(c) lengthening or shortening the Fund’s average maturity period of the fixed income investments (within the
Fund’s objective) in anticipation of changing interest rates.
(d) selecting investments that are bank or government guaranteed or secured against assets to mitigate
default risk.
The EIM will seek to reduce all risks associated with the Fund by virtue of its experience, the analytical process
adopted and by structuring a broadly diversified investment pool .
Approved Fund Size of AMBBTF
The approved fund size of AMBBTF is 1.15 billion Units.
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AMB Income Trust Fund
Introduction
AMBITF is an income-oriented Fund, which invests primarily in a portfolio of fixed income securities. It is
structured to earn income on a regular basis and to achieve capital appreciation through interest rate
fluctuations. The Unit price will change to reflect movements in the value of the Fund’s assets.
Type of Fund
Income Fund
Category of Fund
Bond Fund
Investment Objective
To maximise returns over the medium term, and while at the same time offering stability of capital and regular
consistent income.
Any material change to the investment objective of the Fund would require Unit Holders’ approval.
Benchmark
The performance of AMBITF will be benchmarked against 12-month fixed deposit rate from commercial banks,
which is obtainable from the Bank Negara website.
Investment Policy and Strategy
The Fund invests in fixed income securities and money market instruments to meet its objectives of providing
a steady stream of interest income and potential long-term capital gains. Its fixed income securities
investments comprise government bonds, private debt securities, which are rated A3 or higher by RAM or any
other similar rating agency, and money market instruments, which will ensure a regular income yield to
AMBITF.
AMBITF is to concentrate on investing in quality listed/unlisted debt securities, which provide good yields, for
the medium to long-term period. The portfolio aims at preserving the principle investment whilst achieving
returns better than the prevailing fixed deposit interest rates on an annualized basis, at an acceptable level
of risk. The portfolio shall invest in investment grade debt securities that are deemed to be fundamentally
sound. In addition, the portfolio also concentrates on securities that have attractive yields and trading
opportunities.
The investment process for unlisted securities is similar to the process used for listed securities. Decisions will
be made after thorough assessment on companies, using in-house fundamental research supported by
external research and companies prospectuses.
Investments shall be made in fixed income securities with minimum credit ratings of P2 for short term papers
or A3 for long term papers by RAM or and equivalent rating agencies. The External Investment Manager
shall undertake to conduct a thorough and rigorous credit assessment of potential investments and constant
monitoring of current investments. A filtration process is employed for securities selection to ensure superior
selection that compliments the objective of the portfolio. The filtration processes include debt rating,
financial ratio analysis, management quality assessment and structure of a particular instrument.
AMBITF’s investment strategy is to create a prudent mix in its portfolio to meet its investment objective and
to provide professional assessment of investment prospects by its External Investment Manager in line with
the economic outlook. Longer term fixed income securities such as bonds are also attractive because the rate
of interest payable is generally higher than that available from cash or short-term deposits. Long term bonds
(more than 5 years) will form the core holdings of the portfolio due to its higher returns and thus will be held
for a considerable period of time. The size of this core holdings may vary from time to time to accommodate
changing market conditions, but is generally expected to be around 60-75% of the portfolio.
The portfolio also will consists of short term bonds (1 month to 1 year duration) which will provide liquidity
for repurchases as well as opportunity for the External Investment Manager to make tactical switch in view
of changing interest rate and market conditions.
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The asset allocation between the longer and shorter-term maturities of the fixed income securities are
subject to change, depending on the prevailing economic and market conditions.
The asset allocation for the Fund is as follows:
Min 40% Max 98% in fixed income securities
• Max 60% in liquid assets
In addition investment consideration will also be given on securities that are undervalued relative to their
ratings, potential credit upgrade candidates, and situational issues with potential for improvement in the
credit quality. Furthermore movements in the yield curve may uncover further opportunities. The External
Investment Manager will also seek to diversify the portfolio across the sectors and issuers (to reduce sector
and credit risk) and across duration (to reduce price risk).
Policy on Active and Frequent Trading of Securities
The Fund is actively managed and the frequency of trading of securities is dependent on the objective of the
Fund and available market opportunities.
Temporary Defensive Position
When deemed appropriate and for the benefit of the Fund, the External Investment Manager may take
temporary defensive positions in dealing with adverse market, economic, political and other conditions, that
maybe inconsistent with the Fund’s principal strategy. In this regard, the Fund may hold cash or cash
equivalent instruments as the Fund’s only asset.
Potential Risks Associated with AMBITF
Market Risk
This is fluctuation in the market performance due to factors such as fluctuation in interest rates, and changes
in economic climate, political and social environments that will affect the stock or bond market as a whole.
They will also affect the value of investment either in a positive or negative way.
Credit/Default Risk
AMBITF invests in fixed income securities, so its portfolio is subject to credit risk. This is the risk that the issuer
of the security may default and not be able to make timely principal and interest payments on the security.
The lower-rated corporate debt securities will normally have greater risk of defaults.
Interest Rate Risk
Fixed income securities are particularly sensitive to movements in interest rates. When interest rates rise, the
value of fixed income securities falls and vice versa, thus affecting the NAV of the Fund. Furthermore, fixed
income securities with longer maturity and lower yield coupon rates are more susceptible to interest rate
movements.
Liquidity Risk
Liquidity risk is the risk that the security/instrument invested in cannot be readily sold and converted into cash.
This can occur when trading volume for the security is low and/or when there is a lack of demand for the
security. In managing liquidity risk, the Fund will limit its exposure to instruments, which are deemed less
liquid.
Operational Risk
Operational risk is the risk of loss to the unit holder arising from inadequacies in, or failures of, our internal
procedures and controls for monitoring and quantifying the risks and contractual obligations associated with
investments in AMBITF.
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Mitigation of Risk
The External Investment Manager will take reasonable steps to ensure that the above potential risks are
managed by:
(a) actively monitoring the Fund’s asset allocation to ensure minimum impact from any adverse market
movements. They will ensure that the fixed income securities are carefully selected through company
visits, fundamental analysis and portfolio diversification. The EIM will also focus on the credit quality of
the fixed income securities, which must be of an investment grade that complies with the respective
Fund’s permitted investments.
(b) investing the Fund over a wide range of fixed income securities of different companies which provides
diversification across a number of sectors and industries, minimising the risk not only of any single
company’s securities becoming worthless, but also of all holdings suffering uniformly adverse business
conditions.
(c) lengthening or shortening the Fund’s average maturity period of the fixed income investments (within
the Fund’s objective) in anticipation of changing interest rates.
(d) selecting investments that are bank or government guaranteed or secured against assets to mitigate
default risk.
The EIM will seek to reduce all risks associated with the Fund by virtue of its experience, the analytical process
adopted and by structuring a broadly diversified investment pool.
Approved Fund Size of AMBITF
The approved fund size of AMBITF is 600 million Units.
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AMB Index-Linked Trust Fund
Introduction
AMBILTF is an open-ended indexed Fund that invests in the FBM KLCI component stocks that will closely mirror
the FBM KLCI movements. The Fund is an affordable avenue for investors to have an indirect participation in
the Malaysian equity markets through ownership of component stocks that make up the FBM KLCI. As the
Fund’s investment results closely correspond to the FBM KLCI, investors are capable of gauging their
investment performance with relative ease. Since AMBILTF adopts a passive management philosophy, the fees
levied for managing the Fund are lower when compared to an actively managed fund. This allows the AMBILTF
to be both an attractive and economical equity investment alternative.
Type of Fund
Index Fund
Category of Fund
Equity Fund
Investment Objective
To achieve an investment result that tracks the performance of the benchmark FBM KLCI.
Any material change to the investment objective of the Fund would require Unit Holders’ approval.
Benchmark
The performance of AMBILTF will be benchmarked against the FBM KLCI return. The latest index information
and other news of the index may be obtained at the Bursa Malaysia website.
Investment Policy and Strategy
AMBILTF invests primarily in securities listed on the Bursa Malaysia, which will enable it to track the movement
of the FBM KLCI. As such investments consist of the FBM KLCI component stocks that will closely mirror the
FBM KLCI’s performance. The investment horizon is medium term with the view to benefit from capital
appreciation as the Malaysian economy recovers. The NAV of the Fund will therefore fluctuate with the FBM
KLCI.
It is the Fund’s policy to remain fully invested at all times to minimise the tracking error. The Fund under
normal circumstances will be up to 99.5% invested. However, there are periods when the Fund needs to
liquidate its holding of equities to meet repurchase by Unit Holders. The heavy investment in equities is to
ensure that the performance of the Fund reflects or mirrors that of the index as closely as possible.
The asset allocation for the Fund is as follows:
• Min 90.0 % Max 99.5% in equities
• Min 0.5% Max 10.0% in liquid assets
How the representative sample is constituted
The Fund solely invests in a representative sample of the underlying component stocks of the FBM KLCI. The
representative sample consist of only 26 stocks compared to 30 stocks in the underlying FBM KLCI. The other
four stocks that are not included are gaming stocks. The representative sample is derived and calculated by
using an optimization model to recalculate and rebalance the Fund accordingly, taking into account several
factors including the prevailing beta of the stock and volatility amongst others.
The underlying index
The Fund is designed to track or replicate the performance of the underlying FBM KLCI. Excluding the cash
portion, the Fund focuses on 7 sectors, namely consumer goods, consumer services, financials, industrials, oil
& gas, telecommunications and utilities.
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A brief description of the index methodology/rules
The FBM KLCI methodology ranks companies according to its full market capitalisation. The companies are
tested for minimum free float and liquidity requirements. The selection of the index constituents is then based
on the eligibility following the FTSE Bursa Malaysia Ground Rules which are;
Free Float Methodology
Free float is share capital freely available for trading. Under the free float banding, companies must have at
least 15% of free float to be eligible for inclusion.
Share in Issue Methodology
All classes of ordinary shares in issue are eligible for inclusion in the FBM KLCI subject to conforming to all
other rules of eligibility, free float and liquidity outlined in the FTSE Bursa Malaysia Ground Rules.
Liquidity Rule
Only liquid companies are eligible to the FBM KLCI. Securities must have a turnover of at least 10% of the
shares in issues, after the application of any free float restrictions, in the twelve months prior to the semiannual review in June and December by the FTSE Bursa Malaysia Advisory Committee to be eligible for
inclusion in the indices.
Review Process
The FBM KLCI constituents are reviewed semi-annually in June and December and reviewed by the FTSE Bursa
Malaysia Index Advisory Committee.
Index Calculation
The FBM KLCI is calculated in real time during Bursa Malaysia trading days. The index is calculated and
disseminated on a real time basis every 15 seconds which tracks the market pulse closely and more efficiently.
Industrial Classification Benchmark (ICB)
The classification of the constituent of FBM KLCI is determined using the Industry Classification Benchmark
(ICB). The consistent classification allows comparisons across region and sectors.
Investors may obtain the latest index information and other important news of the index via
www.bursamalaysia.com.my and www.ftse.com.
Circumstances Which May Affect the Accuracy and Completeness in the Calculation of the Index
The FBM KLCI is calculated by FTSE based on its own specific calculation methodology and rules. Therefore, any
error or non-adherence to these calculation methodology and rules may affect the accuracy and / or
completeness of the FBM KLCI computation. Investors may obtain more information about the FBM KLCI’s
calculation methodology and rules from Bursa Malaysia’s website : www.bursamalaysia.com.
Circumstances that lead to tracking error and strategies to minimise the error.
Tracking error happens when the replicating portfolio does not perfectly match the performance of the
underlying index (FBM KLCI). Transaction costs and fewer numbers of stocks in the portfolio (compared to
investment in all of the component stocks) are the constant factors that lead to the tracking error. The former
is manageable as the Fund has lower trading costs given its passive characteristics. As for the latter, tracking
error happens when price of the sample stocks fluctuates sharper than the FBM KLCI. However, tracking error
is minimised when balancing of the Fund is undertaken to ensure close tracking of the Fund to the FBM KLCI.
This investment portfolio enables the reduction in tracking error for the AMBILTF. Any excess in liquidity
should be regularized within a period of 1 month. However, the minimum level of liquid assets to be
maintained may be reviewed from time to time with the approval of the Investment Committee upon
consultation with the Trustee.
Policy on re-balancing the portfolio.
Rebalancing of the portfolio will only be carried out when there is huge withdrawal or injection or when the
tracking error is off track.
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Weightings of the top 10 component stocks of the underlying index as at LPD
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Malayan Banking Bhd
CIMB Group Holdings Bhd
Public Bank Bhd
Sime Darby Bhd
Axiata Group Bhd
Tenaga Nasional Bhd
IOI Corporation Bhd
Petronas Chemicals Group Bhd
Digi.Com Bhd
AMMB Holdings Bhd
10.70%
10.63%
10.03%
8.86%
6.77%
5.86%
5.44%
4.84%
3.62%
3.14%
Weightings of the top 10 component stocks in the representative sample as at LPD (Based on NAV)
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Malayan Banking Bhd
CIMB Group Holdings Bhd
Public Bank Bhd
Sime Darby Bhd
Axiata Group Bhd
Tenaga Nasional Bhd
IOI Corporation Bhd
Petronas Chemicals Group Bhd
Digi.Com Bhd
AMMB Holdings Bhd
10.58%
10.50%
9.91%
8.76%
6.69%
5.79%
5.38%
4.78%
3.57%
3.11%
There is no guarantee or assurance of exact or identical replication at any time of the performance of the FBM
KLCI. The index composition may change and component securities of the underlying index may be delisted.
Policy on Active and Frequent Trading of Securities
The index tracking fund is based on a statistical sample portfolio model of 26 stocks (excluding gaming stocks),
of which the index weights of the benchmark 30 stocks are calculated and rebalanced/reweighted on an equal
weighting basis. The result of such sampling based on a smaller number of stocks would inevitably cause the
individual stocks in the tracker fund to hold a higher weighting than its corresponding index weighting. This
method is equivalent to the traditional indexing method, whereby the tracker will buy into all the securities in
the target benchmark at the same target ratio, albeit a small reweighting is necessary to accommodate the
exclusion of the gaming stocks from the Fund.
Temporary Defensive Position
By virtue that the Fund is index tracking in nature, the Fund will continue to be fully invested in equities, even
in adverse market conditions. The Fund Manager shall not at any time, actively or deliberately attempt to
outperform the market by reducing its exposure in equities and increase cash, or vice versa.
Potential Risks Associated with AMBILTF
Due to the Fund’s passive management philosophy, investors should understand that while it is possible to
obtain returns during a market upturn, it is equally likely that losses can be incurred during its downturn. This
is due to the Fund’s high concentration of investments in the equity markets.
Market Risk
This is fluctuation in the market performance due to factors such as fluctuation in interest rates, and changes
in economic climate, political and social environments that will affect the stock market as a whole.
Individual Stock Risk
AMBILTF is subject to the volatility of price in the share market. The volatility of prices in each stock will affect
the Fund’s value daily. The performance of individual stocks, which make up the portfolio, will fluctuate
according to changes in the market value of the investments. The fluctuations can be significant in the shortterm. This accounts for the market risk when investing in this Fund. However, this impact is minimised through
portfolio diversification.
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Liquidity Risk
Liquidity risk is the risk that the security/instrument invested in cannot be readily sold and converted into cash.
This can occur when trading volume for the security is low and/or when there is a lack of demand for the
security. In managing liquidity risk, the Fund will limit its exposure to instruments, which are deemed less
liquid.
Operational Risk is the risk of loss arising from inadequacies in, or failures of, our internal procedures and
controls for monitoring and quantifying the risks and contractual obligations associated with investments in
AMBILTF.
Mitigation of Risk
The EIM will take reasonable steps to ensure that the above potential risks are managed by:
(a)
actively monitoring the Fund’s asset allocation to ensure minimum impact from any adverse market
movements. They will ensure that the equities are carefully selected through site visits, fundamental
analysis and portfolio diversification.
(b)
investing the Fund over a wide range of equities of different companies which provides diversification
across a number of sectors and industries, minimising the risk not only of any single company’s
securities becoming worthless, but also of all holdings suffering uniformly adverse business conditions.
The External Investment Manager will seek to reduce all these risks associated with the Fund by virtue
of its experience, the analytical process and by structuring a broadly diversified investment pool.
Approved Fund Size of AMBILTF
The approved fund size for AMBILTF is 400 million Units.
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AMB SmallCap Trust Fund
Introduction
AMBSCTF will invest in a diversified portfolio of stocks, in companies which operate in high growth sectors,
hence have the potential to register high growth in earnings per share. A systematic and in-depth fundamental
analysis is applied for the selection of stocks and the monitoring thereafter.
Type of Fund
Growth Fund
Category of Fund
Equity Fund
Investment Objective
To achieve medium to long-term capital growth by primarily investing into securities of small and medium
sized companies : i) listed on the Bursa Malaysia’s Main Market, ACE Market and/or any other boards approved by the SC;
ii) with market capitalisation of not more than the limit considered by the SC to be appropriate for fund similar
to this Fund; and
iii) which have the potential for capital appreciation over the medium to long term.
Any material change to the investment objective of the Fund would require Unit Holder’s approval.
Benchmark
The performance of AMBSCTF will be benchmarked against 60% of the performance of the FBM SmallCap
Index, 35% of the performance of the FBM Top 100 Index and 5% of the 1-month fixed deposit rate of
commercial banks, which are obtainable from the Bursa Malaysia website and the Bank Negara website
respectively.
Investment Policy and Strategy
The Fund is allowed to invest in securities of companies which have obtained approval from the relevant
authorities for listing on either the Main Market of Bursa Malaysia (including ACE Market). The market
capitalisations of the companies are calculated by multiplying the offer price and the enlarged share capital.
The Fund may consider investment in unlisted equities. However, investment in unlisted equities is limited to a
maximum of 10% of the Net Asset Value of the Fund. The investment process of unlisted securities is similar to
the process used for listed securities.
The Fund invests primarily in selected small and medium sized companies listed on the Main Market of the
Bursa Malaysia (including ACE Market) with market capitalization of not more than RM750 million which have
the potential for capital appreciation over the medium to long term.
Criteria for selection include companies with sound management which operate in the high growth sector,
and/or those expected to register high earnings per share growth. The Fund may also invest in companies with
market capitalization exceeding RM750 million in order to increase the benefit of diversification and enhance
the stability of the Fund. Emphasis is given to companies with reasonably good earnings, growth prospects in
the medium to longer term horizon, quality management and good corporate governance.
The Fund employs an active investment strategy and periodical review of the asset allocation is made in
response to changes in economic fundamentals, interest rates and stock market conditions. In equity
investment, to seek out-performance caused by market inefficiencies by identifying undervalued investments
whose potentials are yet to be realized.
The asset allocation for the Fund is as follows:
• Min 40% Max 95% in stocks and shares of small and medium cap companies.
• Min 5% Max 60% in liquid assets and short-term money market investments.
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Policy on Active and Frequent Trading of Securities
The Fund is actively managed and the frequency of trading of securities is dependent on the objective of the
Fund and available market opportunities.
Temporary Defensive Position
When deemed appropriate and for the benefit of the Fund, the External Investment Manager may take
temporary defensive positions in dealing with adverse market, economic, political and other conditions, that
maybe inconsistent with the Fund’s principal strategy. In this regard, the Fund may hold cash or cash
equivalent instruments as the Fund’s only asset.
Potential Risks Associated with AMBSCTF
Market Risk
This is fluctuation in the market performance due to factors such as fluctuation in interest rates, and changes
in economic climate, political and social environments that will affect the stock market as a whole. The stocks
of small cap companies may be traded less actively than those of larger cap companies. As a result small cap
stocks tend to fluctuate relatively more in reaction to a volatile market. Small cap companies may have limited
financial resources compared to larger cap companies, which tend to make them more vulnerable to market
and economic downturns.
Individual Stock Risk
AMBSCTF is subject to the volatility of price in the share market. The volatility of prices in each stock will affect
the Fund’s value daily. The performance of individual stocks, which make up the portfolio, will fluctuate
according to changes in the market value of the investments. The fluctuations can be significant in the shortterm. This accounts for the market risk when investing in this Fund. However, this impact is minimised through
portfolio diversification.
Liquidity Risk
Liquidity risk is the risk that the security/instrument invested in cannot be readily sold and converted into cash.
This can occur when trading volume for the security is low and/or when there is a lack of demand for the
security. In managing liquidity risk, the Fund will limit its exposure to instruments, which are deemed less
liquid.
Operational Risk is the risk of loss to unit holder arising from inadequacies in, or failures of, our internal
procedures and controls for monitoring and quantifying the risks and contractual obligations associated with
investments in AMBSCTF.
Mitigation of Risk
The EIM will take reasonable steps to ensure that the above potential risks are managed by:
(a)
actively monitoring the Fund’s asset allocation to ensure minimum impact from any adverse market
movements. They will ensure that the equities are carefully selected through site visits, fundamental
analysis and portfolio diversification.
(b)
investing the Fund over a wide range of equities of different companies which provides diversification
across a number of sectors and industries, minimising the risk not only of any single company’s
securities becoming worthless, but also of all holdings suffering uniformly adverse business conditions.
The External Investment Manager will seek to reduce all these risks associated with the Fund by virtue
of its experience, the analytical process and by structuring a broadly diversified investment pool.
Approved Fund Size of AMBSCTF
The approved fund size for AMBSCTF is 600 million Units.
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AMB Enhanced Bond Trust Fund
Introduction
AMBEBTF will invest in a diversified portfolio of fixed income securities, with a view of enhancing the overall
Fund’s return through equity market participation in selected stocks listed on the Bursa Malaysia.
Type of Fund
Income and Growth Fund
Category of Fund
Bond Fund
Investment Objective
The objective of the Fund is to provide investors with a stable income stream and an opportunity for capital
appreciation over the medium to long term horizon through investments in securities issued by corporations,
governmental and/or statutory bodies as provided in the Master Prospectus.
Any material change to the investment objective of the Fund would require Unit Holders’ approval.
Benchmark
The performance of AMBEBTF will be benchmarked against 100% of the Quantshop MGS Medium Index, which
is obtainable from the Quantshop website at www.quantshop.com.
Investment Policy and Strategy
AMBEBTF is a bond fund that offers investors an opportunity to invest in fixed income securities with a view to
enhance the overall Fund’s return through investment in equities listed on the Bursa Malaysia. The Fund seeks
to achieve its objective through a policy of diversified investment in convertible debt securities, redeemable
debt securities, government backed bonds/securities, rated private debt securities, money market instruments
and equities.
Unlike the present money market and bond funds, which primarily invest in such instruments only, the
AMBEBTF widens its asset universe by participating in a minimum of 85% of its Net Asset Value in fixed income
securities and money market and no more than 15% in equities listed on the Bursa Malaysia. The appointed
External Investment Manager shall capitalise on the stringent value investment methodology to select such
securities for inclusion in its portfolio.
The asset allocation for the Fund is as follows:
Min 85% in fixed income securities
Max 15% in equities
Min 2% in liquid assets
Fixed Income Investments
AMBEBTF’s approach is one that recognised the need to exploit anomalies and opportunities as they arise. At
the same time, AMBEBTF also seeks to optimise returns (based on our interest rate outlook) at minimal risk;
hence, a well diversified portfolio with stringent credit analysis will be adopted in the portfolio.
Equity Investments
In managing the equity portion, AMBEBTF combines a top-down asset and sector allocation process with a
bottom-up stock selection process. The asset allocation decision is made after a review of macroeconomic
trends inside and outside Malaysia. In particular, analysis will be conducted on the direction of GDP growth,
interest rates, inflation, currencies and government policies. The Fund Manager will then assess the impact of
corporate earnings and determine if there are any predictable trends. These trends form the basis for sector
selection. Stock selection is based on the growth style of equity investing. As such, the criteria would include
improving fundamentals and growth, at reasonable valuations. Stock valuations considered are earnings per
share growth rate, return on equity, price earnings ratio and net tangible assets multiples.
Policy on Active and Frequent Trading of Securities
The Fund is actively managed and the frequency of trading of securities is dependent on the objective of the
Fund and available market opportunities.
Temporary Defensive Position
When deemed appropriate and for the benefit of the Fund, the EIM may take temporary defensive positions in
dealing with adverse market, economical, political and other conditions, that may be inconsistent with the
Fund’s principal strategy. In this regard, the Fund may hold cash or cash equivalent instruments as the Fund’s
only asset.
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Potential Risks Associated with AMBEBTF
Market Risk
This is fluctuation in the market performance due to factors such as fluctuation in interest rates, and changes
in economic climate, political and social environments that will affect the stock or bond market as a whole.
They will also affect the value of investment either in a positive or negative way.
Individual Stock Risk
AMBEBTF is subject to the volatility of prices in the share market. The volatility of prices in each stock will
affect the Fund’s value daily. The performance of individual stocks, which make up the portfolio, will fluctuate
according to changes in the market value of the investments. The fluctuations can be significant in the shortterm. This accounts for the market risk when investing in this Fund. However, this impact is minimised through
portfolio diversification.
Credit/Default Risk
AMBEBTF invests in fixed income securities, so its portfolio is subject to credit risk. This is the risk that the
issuer of the security may default and not be able to make timely principal and interest payments on the
security. The lower-rated corporate debt securities will normally have greater risk of defaults.
Interest Rate Risk
Fixed income securities are particularly sensitive to movements in interest rates. When interest rates rise, the
value of fixed income securities falls and vice versa, thus affecting the NAV of the Fund. Furthermore, fixed
income securities with longer maturity and lower yield coupon rates are more susceptible to interest rate
movements.
Liquidity Risk
Liquidity risk is the risk that the security/instrument invested in cannot be readily sold and converted into cash.
This can occur when trading volume for the security is low and/or when there is a lack of demand for the
security. In managing liquidity risk, the Fund will limit its exposure to instruments, which are deemed less
liquid.
Operational Risk
Operational risk is the risk of loss to the unit holder arising from inadequacies in, or failures of, our internal
procedures and controls for monitoring and quantifying the risks and contractual obligations associated with
investments in AMBEBTF.
Mitigation of Risk
The EIM will take reasonable steps to ensure that the above potential risks are managed by:
(a) actively monitoring the Fund’s asset allocation to ensure minimum impact from any adverse market
movements. They will ensure that the fixed income securities are carefully selected through company visits,
fundamental analysis and portfolio diversification. The EIM will also focus on the credit quality of the fixed
income securities, which must be of an investment grade that complies with the respective Fund’s
permitted investments.
(b) investing the Fund over a wide range of fixed income securities of different companies which provides
diversification across a number of sectors and industries, minimising the risk not only of any single
company’s securities becoming worthless, but also of all holdings suffering uniformly adverse business
conditions.
(c) lengthening or shortening the Fund’s average maturity period of the fixed income investments (within the
Fund’s objective) in anticipation of changing interest rates.
(d) selecting investments that are bank or government guaranteed or secured against assets to mitigate
default risk.
The EIM will seek to reduce all risks associated with the Fund by virtue of its experience, the analytical process
adopted and by structuring a broadly diversified investment pool.
Approved Fund Size of AMBEBTF
The approved fund size of AMBEBTF is 500 million Units.
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AMB Ethical Trust Fund
Introduction
We believe superior long-term investment performance can be achieved by exploiting inefficiencies in capital
markets through rigorous and intensive research within a disciplined investment process.
Type of Fund
Income and Growth Fund
Category of Fund
Equity Fund
Investment Objective
The Fund’s primary objective is to provide investors with income and capital growth for medium to long term
through investments that comply with ethical principles.
Any material change to the investment objective of the Fund would require Unit Holders’ approval.
Benchmark
The performance of AMBETF will be benchmarked against an internally created benchmark comprising of 80%
FBM Emas Shariah Index and 20% KL Finance Index. These 2 indices are available from the Bursa Malaysia
website.
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
POSITIVE FILTER;
- Environmentally friendly
- Promote healthy social values
- Good corporate governance
IDENTIFY SUITABLE COMPANIES
FOR INVESTMENT PURPOSES
2) To achieve the objective of the AMBETF, the Fund will only invest in companies that are deemed to meet
our stringent value investment criterion. For further details, please refer to the section entitled ‘Investment
Approach’.
3) As the Fund places heavy emphasis on the need to invest only in ethical companies, the Fund will screen its
investments and remove companies whose principal business involves the promotion of gambling,
tobacco and alcohol. This screen is known as the Negative Filter. The Fund may also abstain from investing
in companies that have violated ethical principles. The remaining securities after the negative filters are
deemed as ‘Ethical’.
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4) Besides having a Negative Filter, the Fund will also have a Positive Filter. This filter encourages companies
to practice the following activities as listed below: POSITIVE FILTERS
Environmentally friendly
Promote healthy social values
Maintain good corporate
governance
EXAMPLES
• Provides eco-friendly products and services
• Prevention of pollution
• Recycling
• Promotes sports, community projects
• Fulfils social obligations e.g. Housing for the poor, education and
medical care
• Charitable
• Good community relations
•Ensure compliance to regulations and proper dissemination of
information to stakeholders and employees
•Steering management to enhance well-being of employees and
customers
5) Few companies fulfill the entire criterion as laid out by the positive filters. The External Investment
Manager will encourage these companies to practise the above principles if the Fund has such companies
within its portfolio. This will be known as our Shareholder Activism Programme. The External Investment
Manager shall leverage on the expertise of the Ethical Panel of Advisors to accomplish successful practice
of the above procedures.
6) Further to our Shareholder Activism Programme, the External Investment Manager may from time to time
vote on company resolutions, after considering the Fund’s financial interests and social objectives.
However, there may be instances in which the External Investment Manager may not vote if the resolution
is irrelevant or unimportant.
7) Should any of the securities within our portfolio deviate from the Fund’s objectives then the deviation
procedures will commence. Please refer to the section entitled Deviation Procedure.
8) There is no specific percentage or monetary limit on the Fund’s investment in a single industry or security.
However, the limitations will be subject to prevailing regulatory Guidelines.
Our investment approach combines a macro-economic and market analysis “top-down” approach to decide on
strategic asset allocation with a rigorous “bottom-up” approach for stock selection which will emphasize on
value and growth potential of the stocks.
Macro Economic Analysis
Monitor and assess investment
environment to identify emerging
investment trends and themes.
Strategic Asset Allocation
Stock Selection
• Fundamental Analysis;
• Valuation screen for growth,
value, momentum and quality;
• Liquidity and market
capitalisation consideration.
Portfolio Construction
The equity selection will be based on a rigorous process, which will appraise the relative value of a company in
terms of price/earnings (P/E), P/E to growth, dividend growth, dividend yield, price-book value, quality of
earnings (volatility, sustainability, visibility), financial strength, competitive risks, profit margin, cash flow
analysis and quality of management.
The Fund seeks to maximise total returns by providing investors with income from high yielding securities and
capital appreciation through diversified investments mainly in equities listed in the Bursa Malaysia that comply
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with ethical principles as defined in this Fund. Asset allocation for equities will be 50% to 98% and 2% to 50% in
cash or bonds or a combination of both.
The Fund will invest primarily in equities. However, the Fund is not restricted from participating in bonds/fixed
income instruments when deemed appropriate.
The bulk of investments will be invested over a medium to long-term period with active disposal and
liquidation of the investments, a strategy to control risk as well as to optimise capital gains. This is especially so
when the full growth potential of the investment is deemed to have been reduced over a prolonged bull run
and the resultant liquidity may prove handy for further investments along similar lines when the market
has sufficiently eased off. The External Investment Manager in making its investment decision shall at all
times comply with the investment restrictions and requirements as set out in the Deed.
The asset allocation for the Fund is as follows:
• 50- 98% in equities
• 2- 50% in cash or bonds (or a combination of both)
The above asset allocation of the Fund is only indicative and will be reviewed from time to time depending on
economic and market conditions.
Deviation Procedure
When any of the stocks contained within the portfolio has deviated from the Fund’s ethical objectives, the EIM
needs to undertake several measures. However it is necessary that the actions can only be undertaken when
the infringement is a publicly known factor and is uncontestable in nature.
In such event, a Deviation Report will be issued and a meeting between the EIM and the Ethical Panel of
Advisors, will be held to discuss the issue. The Deviation Report should be accompanied with proof of the
deviation. The meeting will assess the nature of the infringement, the frequency of such infringements, and
the extent of damage created by the infringement in terms of contingent liabilities.
Once the EIM and the Ethical Panel of Advisors reach a consensus, the EIM will then undertake to perform any
of the following actions: 1) Communicate with the company to voice our concerns;
2) Reduce our portfolio holdings in the company; and/or
3) Remove the company from our investment portfolio with a classification of the stock as not investable over
a period of 5 years.
The duration for the above actions will be a maximum of 2 years.
Shareholder Activism Programme
This programme entails that the EIM will encourage companies to adopt the activities as laid out in the positive
filters. This can only be conducted if the Fund has an active stake over the company. The programme is
conducted through an open dialogue with the company. The Fund will neither protest nor conduct strikes to
enforce its recommendations.
Policy on Active and Frequent Trading of Securities
The Fund is actively managed and the frequency of trading of securities is dependent on the objective of the
Fund and available market opportunities.
Temporary Defensive Position
When deemed appropriate and for the benefit of the Fund, the EIM may take temporary defensive positions in
dealing with adverse market, economic, political and other conditions, that maybe inconsistent with the Fund’s
principal strategy. In this regard, the Fund may hold cash or cash equivalent instruments as the Fund’s only
asset.
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
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Master Prospectus 2011/2012
excluded in the portfolio. Hence, the returns of the Fund may be limited when compared to a Fund that has no
investment restrictions. Other risks associated with the Fund are described below: Market Risk
This is fluctuation in the market performance due to factors such as fluctuation in interest rates, and changes
in economic climate, political and social environments that will affect the stock or bond market as a whole.
They will also affect the value of investment either in a positive or negative way.
Individual Stock Risk
AMBETF is subject to the volatility of prices in the share market. The volatility of prices in each stock will affect
the Fund’s value daily. The performance of individual stocks, which make up the portfolio, will fluctuate
according to changes in the market value of the investments. The fluctuations can be significant in the shortterm. This accounts for the market risk when investing in this Fund. However, this impact is minimised through
portfolio diversification.
Credit/Default Risk
AMBETF invests in fixed income securities, so its portfolio is subject to credit risk. This is the risk that the issuer
of the security may default and not be able to make timely principal and interest payments on the security.
The lower-rated corporate debt securities will normally have greater risk of defaults.
Interest Rate Risk
Fixed income securities are particularly sensitive to movements in interest rates. When interest rates rise, the
value of fixed income securities falls and vice versa, thus affecting the NAV of the Fund. Furthermore, fixed
income securities with longer maturity and lower yield coupon rates are more susceptible to interest rate
movements.
Liquidity Risk
Liquidity risk is the risk that the security/instrument invested in cannot be readily sold and converted into cash.
This can occur when trading volume for the security is low and/or when there is a lack of demand for the
security. In managing liquidity risk, the Fund will limit its exposure to instruments, which are deemed less
liquid.
Operational Risk is the risk of loss to the unit holder arising from inadequacies in, or failures of, our internal
procedures and controls for monitoring and quantifying the risks and contractual obligations associated with
investments in AMBETF.
Mitigation of Risk
The EIM will take reasonable steps to ensure that the above potential risks are managed by:
a) actively monitoring the Fund’s asset allocation to ensure minimum impact from any adverse market
movements. They will ensure that the fixed income securities and equities are carefully selected through
company visits, fundamental analysis and portfolio diversification. In the case of fixed income securities,
the EIM will also focus on the credit quality of the fixed income securities, which must be of an investment
grade that complies with the respective Fund’s permitted investments.
b) investing the Fund over a wide range of fixed income securities and equities of different companies which
provides diversification across a number of sectors and industries, minimising the risk not only of any
single company’s securities becoming worthless, but also of all holdings suffering uniformly adverse
business conditions.
c) lengthening or shortening the Fund’s average maturity period of the fixed income investments (within the
Fund’s objective) in anticipation of changing interest rates.
d) selecting investments that are bank or government guaranteed or secured against assets to mitigate
default risk.
The EIM will seek to reduce all risks associated with the Fund by virtue of its experience, the analytical process
adopted and by structuring a broadly diversified investment pool.
Approved Fund Size of AMBETF
The approved fund size for AMBETF is 300 million Units.
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AMB Lifestyle Trust Fund Today
Introduction
AMBLTF Today will invest in a well-diversified portfolio of assets, which includes money market securities,
fixed income securities, equities and other securities that are permitted by the authorities from time to time.
The portfolio is an actively managed defensive Fund aimed to provide investors with regular income and
moderate capital growth.
Type of Fund
Income Fund
Category of Fund
Fixed Income Fund
Investment Objective
To seek regular income stream and moderate capital growth through investments into fixed income securities
and dividend yielding equities.
Any material change to the investment objective of the Fund would require Unit Holders’ approval.
Benchmark
The performance of AMBLTF Today will be benchmarked against 80% of the Quantshop MGS Medium Index
and 20% of the performance of the FBM EMAS Index. These benchmark returns are obtainable from the
Quantshop website at www.quantshop.com and the Bursa Malaysia website respectively.
Investment Policy and Strategy
To achieve its investment objective of a regular income stream, the Fund will allocate at least 80% of its assets
into the Malaysian fixed income markets with the balance in dividend yielding equities to enhance the returns
for the portfolio. To reduce the volatility of our equity investments, we may diversify by investing in both the
Malaysia and other Asian markets. The equity portion can and will be reduced to zero in times of market
uncertainties. Futures may also be employed from time to time to hedge the portfolio.
In formulating the investment strategy, the Manager will consider the following to determine the portion of
investment to be in foreign markets (within permitted amounts): comparison of economic outlook of other
Asian economies against the Malaysian economy to determine the growth prospects and economic cycle,
assessment of country, political and social risks, comparison of liquidity flows in all the asian countries, risks or
attractions specific to countries/region and currency risks.
The asset allocation is as follows:
Max 20% in equities
Min 80% Max 100% in bonds and money market.
 Min 2% in cash


Policy on Active and Frequency Trading of Securities
The Fund is actively managed and the frequency of the Fund’s trading strategy is very much depending on
market opportunities.
Temporary Defensive Positions
When deemed appropriate and for the benefit of the Fund, the EIM may take temporary defensive positions in
dealing with adverse market, economic, political and other conditions, that may be inconsistent with the
Fund’s principal strategy. The portfolio may be hedged through futures contracts.
Potential Risks Associated with AMBLTF Today
Market Risk
This is fluctuation in the market performance due to factors such as fluctuation in interest rates, and changes
in economic climate, political and social environments that will affect the stock or bond market as a whole.
They will also affect the value of investment either in a positive or negative way.
Individual Stock Risk
AMBLTF Today is subject to the volatility of prices in the share market. The volatility of prices in each stock will
affect the Fund’s value daily. The performance of individual stocks, which make up the portfolio, will fluctuate
according to changes in the market value of the investments. The fluctuations can be significant in the shortterm. This accounts for the market risk when investing in this Fund. However, this impact is minimised through
portfolio diversification.
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Credit/Default Risk
AMBLTF Today invests in fixed income securities, so its portfolio is subject to credit risk. This is the risk that the
issuer of the security may default and not be able to make timely principal and interest payments on the
security. The lower-rated corporate debt securities will normally have greater risk of defaults.
Interest Rate Risk
Fixed income securities are particularly sensitive to movements in interest rates. When interest rates rise, the
value of fixed income securities falls and vice versa, thus affecting the NAV of the Fund. Furthermore, fixed
income securities with longer maturity and lower yield coupon rates are more susceptible to interest rate
movements.
Liquidity Risk
Liquidity risk is the risk that the security/instrument invested in cannot be readily sold and converted into cash.
This can occur when trading volume for the security is low and/or when there is a lack of demand for the
security. In managing liquidity risk, the Fund will limit its exposure to instruments, which are deemed less
liquid.
Operational Risk is the risk of loss to the unit holder arising from inadequacies in, or failures of, our internal
procedures and controls for monitoring and quantifying the risks and contractual obligations associated with
investments in AMBLTF Today.
Currency Risk
Currency risk is also known as foreign exchange risk. It is the risk associated with investments that are
denominated in foreign currencies. When the foreign currencies fluctuate in an unfavourable direction against
the Ringgit Malaysia, the investments will face currency losses in addition to the capital gains/losses. This may
lead to a lower NAV of the Fund.
Country Risk
The foreign investments of the Fund may be affected by risks specific to the country, in which it invests. Such
risks include changes in a country’s economic fundamentals, social and political stability, currency movements
and foreign policies, etc. These may impact on the prices of listed securities in the particular country.
Mitigation of Risk
The EIM will take reasonable steps to ensure that the above potential risks are managed by:
a) actively monitoring the Fund’s asset allocation to ensure minimum impact from any adverse market
movements. They will ensure that the fixed income securities and equities are carefully selected through
company visits, fundamental analysis and portfolio diversification. In the case of fixed income securities,
the EIM will also focus on the credit quality of the fixed income securities, which must be of an investment
grade that complies with the respective Fund’s permitted investments.
b) investing the Fund over a wide range of fixed income securities and equities of different companies which
provides diversification across a number of sectors and industries, minimising the risk not only of any single
company’s securities becoming worthless, but also of all holdings suffering uniformly adverse business
conditions.
c) lengthening or shortening the Fund’s average maturity period of the fixed income investments (within the
Fund’s objective) in anticipation of changing interest rates.
d) selecting investments that are bank or government guaranteed or secured against assets to mitigate
default risk.
The External Investment Manager will seek to reduce all these risks associated with the Fund by virtue of its
experience, the analytical process adopted and by structuring a broadly diversified investment pool.
Approved Fund Size of AMBLTF Today
The approved Fund size for AMBLTF Today is 250 million Units.
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AMB Lifestyle Trust Fund 2014
Introduction
AMBLTF 2014 will invest in a well-diversified portfolio of assets, which includes money market securities, fixed
income securities, equities and other securities that are permitted by the authorities from time to time. The
portfolio is an actively managed balanced Fund aimed to optimise returns while minimising risks encountered
by investors. The Fund is particularly suited to investors who have a 10 year investment horizon, or more, from
the launch of the Fund.
Type of Fund
Growth Fund
Category of Fund
Balanced Fund
Investment Objective
To provide capital growth for investors through a well-diversified balanced portfolio that is specially catered
for a 10 years investment period. The Fund over its investment period, shall progressively adopt more
defensive investment strategies as the Fund approaches closer to maturity.
Any material change to the investment objective of the Fund would require Unit Holders’ approval.
Benchmark
The benchmark will be based on the proportion of equity and fixed income stated at the start of the TARD as
illustrated at the Table below.
Asset Mix / Benchmark
Equities - FBM EMAS Index
Bonds & money market – Quantshop MGS Medium
Index
TAA 1 (%)
46
54
TAA 2 (%)
40
60
TAA 3 (%)
34
66
TAA 4 (%)
27
73
An illustration of the benchmark is as follows: Benchmark (TAA 1);
(% change in FBM EMAS Index x 46% of NAV) + (% Quantshop MGS Medium Index x 54% of NAV)
Benchmark (TAA 2);
(% change in FBM EMAS Index x 40% of NAV) + (% Quantshop MGS Medium Index x 60% of NAV)
Benchmark (TAA 3)
(% change in FBM EMAS Index x 34% of NAV) + (% Quantshop MGS Medium Index x 66% of NAV)
Benchmark (TAA 4);
(% change in FBM EMAS Index x 27% of NAV) + (% Quantshop MGS Medium Index x 73% of NAV)
The FBM EMAS Index and the Quantshop MGS Medium Index are available from the Bursa Malaysia website
and the Quantshop website respectively.
Investment Policy and Strategy
To achieve its investment objectives, the Fund will invest in Malaysian equities and fixed income securities.
Where appropriate Asian equities may be included to further diversify the Fund. In formulating the investment
strategy, the Manager will consider the following to determine the portion of asset class to be in foreign
investments (within permitted amounts):a) Comparison of economic outlook of Malaysian and other Asian economies to determine the growth
prospects and economic cycle of each country;
b) Assessment country, political and social risks;
c) Comparison of liquidity flows in all Asian countries;
d) Risks or attractions specific to countries/region; and
e) Currency risks.
In addition to the discipline of having a more conservative TAA towards the maturity of the Fund as detailed
above, the Fund will diversify its holdings in equities and fixed income securities within the limits permitted. As
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Master Prospectus 2011/2012
the Fund approaches its Maturity Date, the duration of the fixed income securities will be shortened to match
the Maturity Date as closely as possible. The selection of stocks in the equity portfolio will also be more
defensive as the Fund approaches the maturity date.
In addition to the strategy employed above, the Fund is unique in its investment methodology as it regularly
employs two asset-rebalancing practices at specific intervals within the life of the Fund. These 2 assetrebalancing practices are done on: 1) Interim Asset Rebalancing Date (IARD)
2) Targeted Asset Rebalancing Date (TARD)
The purpose for the 2 practices is detailed below.
Asset Class Movement
The AMBLTF 2014 is a Fund, which periodically reviews its asset allocation to contain risks while maximizing its
return potential. This is carried out on the IARD, which is every 3 months beginning from the commencement
date of the Fund.
In addition to this, the Fund will also employ a progressively defensive investment strategy every 30 months
into the life of the Fund. This process of systematic reduction of risk for the portfolio takes place on the TARD.
This is accomplished via a targeted asset allocation (“TAA”) indicated upfront to the Unit Holder.
The AMBLTF 2014 predetermined asset allocation for each 30-month period is as displayed in the diagram
below.
AMBLTF 2014 begins with higher equity
allocation to provide better growth
potential during the initial years.
10 years to
maturity
7.5 years to
maturity
46%
Bonds and money market
2.5 years to
maturity
34%
40%
TAA 1
TAA 1
TAA 2
TAA 3
TAA 4
5 years to
maturity
60%
54%
AMBLTF 2014 approaches maturity
with lower equity exposure, thereby
reducing volatility.
TAA 2
TAA 3
20%
27%
80%
73%
66%
Maturity
TAA 4
Maturity
Equities
(23 December 2004 – 22 June 2007)
(23 June 2007 – 22 December 2009)
(23 December 2009 – 22 June 2012)
(23 June 2012 –22 December 2014)
Interim Asset Re-balancing Date (IARD)
IARD occurs every 3 months after the launch date of the Fund. The review on these dates aims to keep the
portfolio within, the TAA limits as agreed with the investor for that particular 30 months period.
Should the overall portfolio differ from the TAA requirements at each 3 months period, adjustments will be
made to correct the imbalances in the asset allocation. The imbalance is usually caused by market fluctuations.
E.g. If the TAA for the investment period is targeted at 66% bonds and money markets and 34% equities, and at
an IARD the portfolio consisted of 52% bonds and money markets and 48% equities, then the EIM will liquidate
the excessive equity exposure while simultaneously increasing the bonds and money markets portion.
While the TAA pre-determines the asset mix between fixed income (bonds and money market Instruments)
and equities, discretion is given to the Manager to increase the bond and money market mix in accordance to
their economic and market outlook. The variation allowed for bonds and money market for each TAA is as
displayed in the Table below.
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Targeted Asset Re-balancing Date (TARD)
Every 2 ½ years into the life of the Fund, AMBLTF 2014 will adopt an increasingly defensive asset allocation
strategy. The purpose for this is to ensure that as the investment horizon shortens, the investor will not be
exposed to excessive risk. This process involves reducing the volatility of the portfolio by increasing holding in
less volatile assets such as bonds and cash, while reducing volatile assets such as equity.
The asset allocation is as follows:
The following table indicates the maximum & minimum target exposures for equities and fixed income
(comprising of bonds and money market Instruments) for each TAA: Bonds & money market (min)
Bonds & money market (max)
Equities (min)
Equities (max)
TAA 1 (%)
54
59
41
46
TAA 2 (%)
60
65
35
40
TAA 3 (%)
66
71
29
34
TAA 4 (%)
73
78
22
27
Policy on Active and Frequency Trading of Securities
The Fund is actively managed and the frequency of the Fund’s trading strategy is very much depending on
market opportunities.
Temporary Defensive Positions
When deemed appropriate and for the benefit of the Fund, the EIM may take temporary defensive positions in
dealing with adverse market, economic, political and other conditions, that may be inconsistent with the
Fund’s principal strategy. The portfolio may be hedged through futures contracts.
Potential Risks Associated with AMBLTF 2014
Market Risk
This is fluctuation in the market performance due to factors such as fluctuation in interest rates, and changes
in economic climate, political and social environments that will affect the stock or bond market as a whole.
They will also affect the value of investment either in a positive or negative way.
Individual Stock Risk
AMBLTF 2014 is subject to the volatility of prices in the share market. The volatility of prices in each stock will
affect the Fund’s value daily. The performance of individual stocks, which make up the portfolio, will fluctuate
according to changes in the market value of the investments. The fluctuations can be significant in the shortterm. This accounts for the market risk when investing in this Fund. However, this impact is minimised through
portfolio diversification.
Credit/Default Risk
AMBLTF 2014 invests in fixed income securities, so its portfolio is subject to credit risk. This is the risk that the
issuer of the security may default and not be able to make timely principal and interest payments on the
security. The lower-rated corporate debt securities will normally have greater risk of defaults.
Interest Rate Risk
Fixed income securities are particularly sensitive to movements in interest rates. When interest rates rise, the
value of fixed income securities falls and vice versa, thus affecting the NAV of the Fund. Furthermore, fixed
income securities with longer maturity and lower yield coupon rates are more susceptible to interest rate
movements.
Liquidity Risk
Liquidity risk is the risk that the security/instrument invested in cannot be readily sold and converted into cash.
This can occur when trading volume for the security is low and/or when there is a lack of demand for the
security. In managing liquidity risk, the Fund will limit its exposure to instruments, which are deemed less
liquid.
Operational Risk is the risk of loss to the unit holder arising from inadequacies in, or failures of, our internal
procedures and controls for monitoring and quantifying the risks and contractual obligations associated with
investments in AMBLTF 2014.
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Currency Risk
Currency risk is also known as foreign exchange risk. It is the risk associated with investments that are
denominated in foreign currencies. When the foreign currencies fluctuate in an unfavourable direction against
the Ringgit Malaysia, the investments will face currency losses in addition to the capital gains/losses. This may
lead to a lower NAV of the Fund.
Country Risk
The foreign investments of the Fund may be affected by risks specific to the country, in which it invests. Such
risks include changes in a country’s economic fundamentals, social and political stability, currency movements
and foreign policies, etc. These may impact on the prices of listed securities in the particular country.
Mitigation of Risk
The EIM will take reasonable steps to ensure that the above potential risks are managed by:
a) actively monitoring the Fund’s asset allocation to ensure minimum impact from any adverse market
movements. They will ensure that the fixed income securities and equities are carefully selected through
company visits, fundamental analysis and portfolio diversification. In the case of fixed income securities,
the EIM will also focus on the credit quality of the fixed income securities, which must be of an investment
grade that complies with the respective Fund’s permitted investments.
c) investing the Fund over a wide range of fixed income securities and equities of different companies which
provides diversification across a number of sectors and industries, minimising the risk not only of any single
company’s securities becoming worthless, but also of all holdings suffering uniformly adverse business
conditions.
e) lengthening or shortening the Fund’s average maturity period of the fixed income investments (within the
Fund’s objective) in anticipation of changing interest rates.
f) selecting investments that are bank or government guaranteed or secured against assets to mitigate
default risk.
The EIM will seek to reduce all risks associated with the Fund by virtue of its experience, the analytical process
adopted and by structuring a broadly diversified investment pool.
Maturity of the Fund
th
AMBLTF 2014 will mature on 22 December 2014, which is the date of the tenth (10 ) anniversary of the
commencement date. The Fund shall be terminated on the Maturity Date and all Units held by the Unit
Holders will be redeemed. The NAV per Unit will be calculated by dividing the NAV over the UIC. The net
proceeds will be paid to Unit Holders within 2 months after the Maturity Date.
Special Terms and Conditions
1.
The Units in this Fund shall cease to be created and sold by the Manager to an investor or Unit Holder
after the date falling six (6) months before the Maturity Date or such other period as may be determined
by the Manager (the “Cut Off Date”).
2.
A Unit Holder may write in at any time after the Cut Off Date and before the Maturity Date to request the
Manager to repurchase all the Units in this Fund held by such Unit Holder on the Maturity Date of this
Fund to either;
(a) Pay the proceeds to him in cash; or
(b) Reinvest the proceeds thereof by purchasing Units in AMBLTF Today at the price equal to the Net
Asset Value of the Units of this Fund on the Maturity Date:
and the Manager shall act accordingly.
Approved Fund Size of AMBLTF 2014
The approved Fund size of AMBLTF 2014 is 250 million Units.
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AMB Dividend Trust Fund
Introduction
AMBDTF will invest in a well-diversified equity portfolio, and which will focus on high (and potentially high)
dividend yielding equities in Malaysia and other eligible market. The portfolio is an actively managed defensive
equity Fund that may also invest in fixed income securities as a tactical defensive measure depending on
market conditions.
Type of Fund
Income and Growth Fund
Category of Fund
Equity Fund
Investment Objective
To provide investors with a regular income stream and to attain medium-to-long-term capital appreciation
through investing in high (and potentially high) dividend yielding equities (including foreign equities).
Any material change to the investment objectives of the Fund would require Unit Holder’s approval.
Benchmark
The performance of AMBDTF will be benchmarked against the 70% of FBMKLCI and 30% of 12-month fixed
deposit rate of commercial banks. The FBM KLCI is obtainable from Bursa Malaysia website and the 12-month
fixed deposit rate of commercial banks is obtainable from Bank Negara website.
Investment Policy and Strategy
The Fund will invest primarily in high dividend yielding stocks both in Malaysia and in Asian ex-Japan markets
(the latter being subject to a maximum of 30% of the total NAV of the Fund). The selection of appropriate
equities will be driven by the External Investment Manager’s internal screening process whereby emphasis will
be placed on the sustainability of dividends, price-to-earnings ratios, gearing levels, historical volatility, as well
as liquidity.
High dividend and potentially high dividend yielding stocks would be measured against FBM KLCI. Although up
to 30% of the total NAV of the Fund can be invested overseas, these investments will be opportunistic in
nature. In any event, the dividend yields on overseas investments will also be measured against domestic
interest rates. The dividend yields would be based on both historical and prospective. As such, the focus of the
Fund would be on companies that can pay out sustainable dividends. This would exclude companies involved
in highly cyclical industries where earnings, cash flows and hence dividends tend to fluctuate e.g. property
development companies.
Historical yields would provide a guide as to the company’s dividend payout policy. While some companies
may not have a high historical dividend yield, the Fund may still choose to invest in these companies if
prospective dividend yields are attractive and sustainable. Where in the opinion of the External Investment
Manager a defensive strategy is appropriate, up to 30% of the Fund may be invested in Malaysian fixed income
instruments. For fixed income securities, the Fund will mainly invest in fixed income securities carrying a
minimum credit rating of AA3 /P1 by RAM or equivalent rating agencies to provide investors with a regular
stream of income, while minimizing principal volatility.
The Fund’s equities investment will range from a minimum of 70% to a maximum of 99.8% for equities. Up to
30% of the Fund may be invested in Malaysian fixed income securities should a tactical defensive strategy be
appropriate.
The asset allocation for the Fund is as follows:
Min 70% Max 99.8% in equities
Max 20% in listed REITs.
 Min 0.2% Max 30% in fixed income and cash.


Up to 30% of the Fund’s NAV may be invested in Asian ex-Japan markets and/or the External Investment
Manager may choose to invest solely in the domestic market.
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Policy on Active and Frequency Trading of Securities
The Fund is actively managed and the frequency of the Fund’s trading strategy is very much depending on
market opportunities.
Temporary Defensive Positions
When deemed appropriate and for the benefit of the Fund, the EIM may take temporary defensive positions in
dealing with adverse market, economic, political and other conditions, that may be inconsistent with the
Fund’s principal strategy. In this regard, the Fund may hold cash or cash equivalent instruments as the Fund’s
only assets.
Potential Risks Associated With AMBDTF
Market Risk
This is fluctuation in the market performance due to factors such as fluctuation in interest rates, and changes
in economic climate, political and social environments that will affect the stock or bond market as a whole.
They will also affect the value of investment either in a positive or negative way.
Individual Stock Risk
AMBDTF is subject to the volatility of prices in the share market. The volatility of prices in each stock will affect
the Fund’s value daily. The performance of individual stocks, which make up the portfolio, will fluctuate
according to changes in the market value of the investments. The fluctuations can be significant in the shortterm. This accounts for the market risk when investing in this Fund. However, this impact is minimised through
portfolio diversification.
Credit/Default Risk
AMBDTF invests in fixed income securities, so its portfolio is subject to credit risk. This is the risk that the issuer
of the security may default and not be able to make timely principal and interest payments on the security.
The lower-rated corporate debt securities will normally have greater risk of defaults.
Interest Rate Risk
Fixed income securities are particularly sensitive to movements in interest rates. When interest rates rise, the
value of fixed income securities falls and vice versa, thus affecting the NAV of the Fund. Furthermore, fixed
income securities with longer maturity and lower yield coupon rates are more susceptible to interest rate
movements.
Liquidity Risk
Liquidity risk is the risk that the security/instrument invested in cannot be readily sold and converted into cash.
This can occur when trading volume for the security is low and/or when there is a lack of demand for the
security. In managing liquidity risk, the Fund will limit its exposure to instruments, which are deemed less
liquid.
Operational Risk is the risk of loss to the unit holder arising from inadequacies in, or failures of, our internal
procedures and controls for monitoring and quantifying the risks and contractual obligations associated with
investments in AMBDTF.
Currency Risk
Currency risk is also known as foreign exchange risk. It is the risk associated with investments that are
denominated in foreign currencies. When the foreign currencies fluctuate in an unfavourable direction against
the Ringgit Malaysia, the investments will face currency losses in addition to the capital gains/losses. This may
lead to a lower NAV of the Fund.
Country Risk
The foreign investments of the Fund may be affected by risks specific to the country, in which it invests. Such
risks include changes in a country’s economic fundamentals, social and political stability, currency movements
and foreign policies, etc. These may impact on the prices of listed securities in the particular country.
Mitigation of Risk
The EIM will take reasonable steps to ensure that the above potential risks are managed by:
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a) actively monitoring the Fund’s asset allocation to ensure minimum impact from any adverse market
movements. They will ensure that the fixed income securities and equities are carefully selected through
company visits, fundamental analysis and portfolio diversification. In the case of fixed income securities,
the EIM will also focus on the credit quality of the fixed income securities, which must be of an investment
grade that complies with the respective Fund’s permitted investments.
b) investing the Fund over a wide range of fixed income securities and equities of different companies which
provides diversification across a number of sectors and industries, minimising the risk not only of any single
company’s securities becoming worthless, but also of all holdings suffering uniformly adverse business
conditions. Specifically for the Fund’s equities investments, given the objective of the Fund and intention of
the Fund to invest in high (and potentially high) dividend yielding stocks, the internal screen employed will
take into account the sustainability of dividends, gearing levels, historical volatility and liquidity.
c) lengthening or shortening the Fund’s average maturity period of the fixed income investments (within the
Fund’s objective) in anticipation of changing interest rates.
d) selecting investments that are bank or government guaranteed or secured against assets to mitigate
default risk.
The EIM will seek to reduce all risks associated with the Fund by virtue of its experience, the analytical process
adopted and by structuring a broadly diversified investment pool.
Approved Fund Size of AMBDTF
The approved Fund size for AMBDTF is 800 million units.
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AMB Dana Yakin
Introduction
AMBDY is a Shariah-compliant equity fund that offers investors an opportunity to invest in a diversified
portfolio of assets managed under investment policies that adhere to the Shariah Principles. The investment
portfolio of the Fund comprises securities which has been classified as Shariah compliant by the Shariah
Advisory Council of the Securities Commission. For securities which are not certified by the Shariah Advisory
Council, the Shariah Committee Members of the Fund will determine whether the securities are Shariah
compliant for investment by the Fund.
By investing in a diversified portfolio of Shariah compliant shares in Malaysia, AMBDY provides investors with a
better spread of investments than could be achieved by investors with a small amount of money to invest.
Type of Fund
Growth Fund
Category of Fund
Equity Fund (Shariah)
Investment Objective
The objective of the Fund is to achieve a steady capital growth over the medium to long term period through
investments permissible under the Shariah Principles.
Any material change to the investment objective of the Fund would require Unit Holders’ approval.
Benchmark
The performance of AMBDY will be benchmarked against 90% of the FBM EMAS Shariah Index and 10% of the
1-month General Investment Account-rates of commercial banks, which are obtainable from the Bursa
Malaysia website and the Bank Negara website respectively.
Investment Policy and Strategy
This is to attain the Fund's objective of achieving steady capital growth through investment in a diversified
portfolio of equities which conform to the Shariah Principles. The policy/approach undertaken will enable the
Fund to meet its objective within the investment horizon of medium to long term (3 years to 5 years).
The investment strategy of AMBDY is to enhance the value of the Fund through diversification of stocks that
comply with Shariah Principles within the permitted investment parameters. The emphasis is given to
companies with reasonably good earnings growth prospects in the medium to longer-term horizon, quality
management and good earnings track records.
The EIM will determine the allocation between equity and liquid assets to reflect the prevailing investment
climate. In a bull market, the EIM may invest more in equity and, in a bearish market; the equity portion may
be scaled down accordingly. The asset allocation between the various instrument assets referred to above and
the decision to invest, sell or trade are based on the decision of the EIM.
AMBDY will be investing in the equity market. Stocks selection will be based on their good earnings medium to
long term earnings visibility, good management and corporate governance that comply with Shariah Principles.
The External Investment Manager may invest up to 10% of the NAV of the Fund in securities that are not
traded in or under the rules of an eligible market. The investment process of unlisted securities is similar to the
process used for listed securities. There are no restrictions on the proportions that can be held in fixed income
investments. Nevertheless, the Fund's fixed income investments shall comprise of short-term government and
corporate debt securities and money market instruments to longer-dated instruments that conform to the
Shariah Principles.
The asset allocation for the Fund is as follows:
Min 40%, Max 90% in Shariah-compliant equities.
Min 10% in Shariah-compliant liquid assets.
Policy on Active and Frequency Trading of Securities
The Fund is actively managed and the frequency of the Fund’s trading strategy is very much depending on
market opportunities.
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Temporary Defensive Positions
When deemed appropriate and for the benefit of the Fund, the EIM may take temporary defensive positions in
dealing with adverse market, economic, political and other conditions, that may be inconsistent with the
Fund’s principal strategy. In this regard, the Fund may hold cash at higher levels than what is prescribed or
cash equivalent instruments as the Fund’s only assets.
Potential Risks Associated with AMBDY
Market Risk
This is fluctuation in the market performance due to factors such as fluctuation in interest rates, and changes
in economic climate, political and social environments that will affect the stock or bond market as a whole.
They will also affect the value of investment either in a positive or negative way.
Individual Stock Risk
AMBDY is subject to the volatility of prices in the share market. The volatility of prices in each stock will affect
the Fund’s value daily. The performance of individual stocks, which make up the portfolio, will fluctuate
according to changes in the market value of the investments. The fluctuations can be significant in the shortterm. This accounts for the market risk when investing in this Fund. However, this impact is minimised through
portfolio diversification.
Liquidity Risk
Liquidity risk is the risk that the security/instrument invested in cannot be readily sold and converted into cash.
This can occur when trading volume for the security is low and/or when there is a lack of demand for the
security. In managing liquidity risk, the Fund will limit its exposure to instruments, which are deemed less
liquid.
Operational Risk
Operational Risk is the risk of loss arising from inadequacies in, or failures of, our internal procedures and
controls for monitoring and quantifying the risks and contractual obligations associated with investments in
AMBDY.
Non-Shariah Compliance Risk
This is the risk of securities, which were earlier classified as Shariah approved securities being subsequently
classified non-approved securities by the Shariah Advisory Council of the Securities Commission due to certain
reasons, such as changes in the companies’ operations. However, this risk is mitigated by regular review of the
Fund's compliance with the list of securities approved by the Shariah Advisory Council of the SC and also
monthly review of the invested securities by the Shariah Committee of the Fund.
Mitigation of Risk
The EIM will take reasonable steps to ensure that the above potential risks are managed by:
a) Actively monitoring the Fund’s asset allocation to ensure minimum impact from any adverse market
movements. They will ensure that equities are carefully selected through site visits, fundamental analysis
and portfolio diversification.
b) Investing the Fund over a wide range of equities of different companies which provides diversification
across a number of sectors and industries, minimising the risk not only of any single company’s securities
becoming worthless, but also of all holdings suffering uniformly adverse business conditions.
The EIM will seek to reduce all risks associated with the Fund by virtue of its experience, the analytical process
and by structuring a broadly diversified investment pool.
Approved Fund Size
The approved Fund size for AMBDY is 1.2 billion Units.
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AMB Dana Ikhlas
Introduction
AMBDI is a Shariah- compliant balanced fund that offers investors an opportunity to invest in a diversified
portfolio of assets managed under investment policies that adhere to the Shariah Principles. The investment
portfolio of the Fund comprises securities which has been classified as Shariah compliant by the Shariah
Advisory Council of the Securities Commission. For securities which are not certified by the Shariah Advisory
Council, the Shariah Committee Members of the Fund will determine whether the securities are Shariah
compliant for investment by the Fund.
Type of Fund
Growth and Income Fund
Category of Fund
Balanced Fund (Shariah)
Investment Objective
To attain a mix of regular income stream and possible capital growth via investments into listed equities,
islamic debt instruments and other assets that are permissible under the Shariah Principles.
Any material change to the investment objective of the Fund would require Unit Holders’ approval.
Benchmark
The performance of AMBDI will be benchmarked against 60% of the FBM EMAS Shariah Index and 40% of the
12-month GIA-rates of commercial banks, which are obtainable from the Bursa Malaysia website and Bank
Negara website respectively.
Investment Policy and Strategy
This is to create an optimal mix of equities, debt securities and money market instruments which conform to
Shariah principles. The policy/approach undertaken will enable investors to attain a balanced income derived
through investment in the above instruments.
Equities Investment Strategy
AMBDI will focus on stocks which comply with Shariah Principles. Emphasis is given to companies with
reasonably good earnings growth prospects in the medium to longer term horizon, quality management and
good corporate governance .
Fixed Income Investment Strategy
Investments in this asset class range from short-term government and corporate debt securities and money
market instruments to longer-dated government and corporate bonds that conform to the Shariah Principles.
Focus will be on overall credit quality and potential yield.
Depending on the prevailing economic scenario, AMBDI aims to optimally balance its investments between
potentially high return quality investments and lower risk Islamic debt and money market instruments. Specific
investments are mainly those that offer good potentials for income and growth. The External Investment
Manager will change the Fund's asset allocation depending on the prevailing economic conditions and the
market outlook for both equity and bond. This strategy aims to reduce risk and achieve consistent returns.
Investment shall be made in fixed income securities with minimum credit ratings of P2 for short term papers or
A3 for long term papers by RAM or equivalent agencies. The External Investment Manager shall undertake to
conduct a thorough and rigorous credit assessment of potential investments and constant monitoring of
current investments. A filtration process is employed for securities selection to ensure superior selection which
complements the objective of the portfolio. The filtration process includes debt rating, financial ratio analysis,
management quality assessment and structure of a particular instrument.
The asset allocation for the Fund is as follows:
Min 20% to Max 70% in Shariah- compliant equities.
Min 20% to Max 70% in Shariah- compliant debt instruments.
Min 2% in Shariah- compliant liquid assets .
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Policy on Active and Frequency Trading of Securities
The Fund is actively managed and the frequency of the Fund’s trading strategy is very much depending on
market opportunities.
Temporary Defensive Positions
When deemed appropriate and for the benefit of the Fund, the External Investment Manager may take
temporary defensive positions in dealing with adverse market, economic, political and other conditions, that
may be inconsistent with the Fund’s principal strategy. In this regard, the Fund may hold cash or cash
equivalent instruments as the Fund’s only assets.
Potential Risks Associated with AMBDI
Market Risk
This is fluctuation in the market performance due to factors such as fluctuation in interest rates, and changes
in economic climate, political and social environments that will affect the stock or bond market as a whole.
They will also affect the value of investment either in a positive or negative way.
Individual Stock Risk
AMBDI is subject to the volatility of prices in the share market. The volatility of prices in each stock will affect
the Fund’s value daily. The performance of individual stocks, which make up the portfolio, will fluctuate
according to changes in the market value of the investments. The fluctuations can be significant in the shortterm. This accounts for the market risk when investing in this Fund. However, this impact is minimised through
portfolio diversification.
Credit/Default Risk
AMBDI invests in fixed income securities, so its portfolio is subject to credit risk. This is the risk that the issuer
of the security may default and not be able to make timely principal and interest payments on the security.
The lower-rated corporate debt securities will normally have greater risk of defaults.
Interest Rate Risk
Interest rate risk is a general economic indicator that will impact on the management of the Fund regardless of
whether it is a Shariah Fund or otherwise. It does not in any way suggest that the Fund will invest in debt
securities which are not Shariah approved. All the investments for Shariah Fund accord with the Shariah
Principles.
Prices of short-term debt instruments move inversely with interest rates and the degree of price sensitivity to
interest rates is a function of debt securities and coupon maturity as well as the level of interest rates. Even
though the Fund does not invest in interest bearing instruments, the interest rate referred herein is to the
general interest rate of the country which may affect the value of the investment of the Fund. However, given
the short term nature of the investments, the Fund is exposed to minimal interest rate risk.
In order to mitigate interest rate exposure of the Fund, the EIM will manage the duration of the portfolio via
shorter or longer tenured assets depending on the view of the future interest rate trend of the EIM, which is
based on its continuous fundamental research and analysis.
Liquidity Risk
Liquidity risk is the risk that the security/instrument invested in cannot be readily sold and converted into cash.
This can occur when trading volume for the security is low and/or when there is a lack of demand for the
security. In managing liquidity risk, the Fund will limit its exposure to instruments, which are deemed less
liquid.
Operational Risk is the risk of loss to the unit holder arising from inadequacies in, or failures of, our internal
procedures and controls for monitoring and quantifying the risks and contractual obligations associated with
investments in AMBDI.
Non-Shariah Compliant Risk
This is the risk of securities, which were earlier classified as Shariah approved securities being subsequently
classified non-approved securities by the Shariah Advisory Council of the SC due to certain reasons, such as
changes in the companies’ operations. However, this risk is mitigated by regular review of the Fund's
compliance with the list of securities approved by the Shariah Advisory Council of the SC and also monthly
review of the invested securities by the Shariah Committee of the Fund.
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Mitigation of Risk
The EIM will take reasonable steps to ensure that the above potential risks are managed by:
a) actively monitoring the Fund’s asset allocation to ensure minimum impact from any adverse market
movements. They will ensure that the fixed income securities and equities are carefully selected through
site visits, fundamental analysis and portfolio diversification. In the case of fixed income securities, the
External Investment Manager will also focus on the credit quality of the fixed income securities, which
must be of an investment grade that complies with the respective Fund’s permitted investments.
b) investing the Fund over a wide range of fixed income securities and equities of different companies which
provides diversification across a number of sectors and industries, minimising the risk not only of any single
company’s securities becoming worthless, but also of all holdings suffering uniformly adverse business
conditions.
c) lengthening or shortening the Fund’s average maturity period of the fixed income investments (within the
Fund’s objective) in anticipation of changing interest rates.
d) selecting investments that are bank or government guaranteed or secured against assets to mitigate
default risk.
The EIM will seek to reduce all risks associated with the Fund by virtue of its experience, the analytical process
and by structuring a broadly diversified investment pool.
Approved Fund Size
The approved Fund size for AMBDI is 400 million Units.
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AMB Dana Arif
Introduction
AMBDA is a Shariah-compliant income-oriented Fund, which invests primarily in a portfolio of Islamic debt
securities. It is structured to earn income on a regular basis and to achieve capital appreciation through
fluctuations in market yields of Islamic debt securities.
The investment portfolio of the Fund comprises securities which has been classified as Shariah compliant by
the Shariah Advisory Council of the Securities Commission Malaysia. For securities which are not certified by
the Shariah Advisory Council, the Shariah Committee Members of the Fund will determine whether the
securities are Shariah- compliant for investment by the Fund.
Type of Fund
Income Fund
Category of Fund
Bond Fund (Shariah)
Investment Objective
To provide a steady appreciation of the NAV of the Fund with a regular flow of income to our investors
through investments in debt securities that are permissible under Shariah Principles.
Any material change to the investment objective of the Fund would require Unit Holders’ approval.
Benchmark
The performance of AMBDA will be benchmarked against the 12-month General Investment Account-rates of
commercial banks, which is obtainable from the Bank Negara website.
Investment Policy and Strategy
The Fund invests in Islamic debt securities and money market instruments to meet its objectives of providing a
steady stream of profit income and potential long-term capital gains. Its debt securities investments consist of
government bonds, private debt securities, which are rated A3 or better by RAM or equivalent agencies, and
money market instruments, which will ensure a regular income yield to AMBDA.
The EIM will invest in a diversified portfolio of Islamic debt securities in order to maximise return within
acceptable risk parameters. Diversification is to be done across sectors and issuers (to reduce sector and credit
risk), and across duration (to reduce price risk). Depending on market conditions, the EIM will make the
necessary adjustments.
Preferred investments will be in securities that are undervalued relative to their ratings, potential credit rating
upgrade candidates, and situational issues with potential for improvement in the credit quality. In addition,
movements in the yield curve may uncover further opportunities.
The Fund is actively managed and the frequency of the Fund’s trading strategy is very much depending on
market opportunities.
AMBDA is to concentrate on investing in quality listed/unlisted debt securities, which provide good yields, for
the medium to long-term period. The portfolio aimed at preserving the principle investment whilst achieving
returns better than the prevailing fixed deposit rates on annualised basis, at an acceptable level of risk. The
portfolio shall invest in investment grade debt securities that are deemed to be fundamentally sound. In
addition, the portfolio also concentrates on securities that have attractive yields and trading opportunities.
The investment process for unlisted securities is similar to the process used for listed securities. Decisions will
be made after thorough assessment on companies, using in-house fundamental research supported by
external research and companies' prospectuses. Investment shall be made in fixed income securities with
minimum credit ratings of P2 for short term papers or A3 for long term papers by RAM or equivalent agencies.
The External Investment Manager shall undertake to conduct a thorough and rigorous credit assessment of
potential investments and constant monitoring of current investments. A filtration process is employed for
securities selection to ensure superior selection which complements the objective of the portfolio. The
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filtration process includes debt rating, financial ratio analysis, management quality assessment and structure
of a particular instrument.
The asset allocation for the Fund is as follows:
Min 50% Max 98% in Shariah-compliant debt securities
Min 2% Max 50% in Shariah-compliant liquid assets.
Policy on Active and Frequency Trading of Securities
The Fund is actively managed and the frequency of the Fund’s trading strategy is very much depending on
market opportunities.
Temporary Defensive Positions
When deemed appropriate and for the benefit of the Fund, the EIM may take temporary defensive positions in
dealing with adverse market, economic, political and other conditions, that may be inconsistent with the
Fund’s principal strategy. In this regard, the Fund may hold cash or cash equivalent instruments as the Fund’s
only assets.
Potential Risks Associated with AMBDA
Market Risk
This is fluctuation in the market performance due to factors such as fluctuation in interest rates, and changes
in economic climate, political and social environments that will affect the stock or bond market as a whole.
They will also affect the value of investment either in a positive or negative way.
Credit/Default Risk
AMBDA invests in fixed income securities, so its portfolio is subject to credit risk. This is the risk that the issuer
of the security may default and not be able to make timely principal and interest payments on the security.
The lower-rated corporate debt securities will normally have greater risk of defaults.
Interest Rate Risk
Interest rate risk is a general economic indicator that will impact on the management of the Fund regardless of
whether it is a Shariah Fund or otherwise. It does not in any way suggest that the Fund will invest in debt
securities which are not Shariah approved. All the investments for Shariah Fund accord with the Shariah
Principles.
Prices of short-term debt instruments move inversely with interest rates and the degree of price sensitivity to
interest rates is a function of debt securities and coupon maturity as well as the level of interest rates. Even
though the Fund does not invest in interest bearing instruments, the interest rate referred herein is to the
general interest rate of the country which may affect the value of the investment of the Fund. However, given
the short term nature of the investments, the Fund is exposed to minimal interest rate risk.
In order to mitigate interest rate exposure of the Fund, the EIM will manage the duration of the portfolio via
shorter or longer tenured assets depending on the view of the future interest rate trend of the EIM, which is
based on its continuous fundamental research and analysis.
Liquidity Risk
Liquidity risk is the risk that the security/instrument invested in cannot be readily sold and converted into cash.
This can occur when trading volume for the security is low and/or when there is a lack of demand for the
security. In managing liquidity risk, the Fund will limit its exposure to instruments, which are deemed less
liquid.
Operational Risk is the risk of loss to the unit holder arising from inadequacies in, or failures of, our internal
procedures and controls for monitoring and quantifying the risks and contractual obligations associated with
investments in AMBDA.
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Non-Shariah Compliant Risk
This is the risk of securities, which were earlier classified as Shariah approved securities being subsequently
classified non-approved securities by the Shariah Advisory Council of the SC due to certain reasons, such as
changes in the companies’ operations. However, this risk is mitigated by regular review of the Fund's
compliance with the list of securities approved by the Shariah Advisory Council of the SC and also monthly
review of the invested securities by the Shariah Committee of the Fund.
Mitigation of Risk
The EIM will take reasonable steps to ensure that the above potential risks are managed by:
a) actively monitoring the Fund’s asset allocation to ensure minimum impact from any adverse market
movements. They will ensure that the fixed income securities are carefully selected through site visits,
fundamental analysis and portfolio diversification. The External Investment Manager will also focus on the
credit quality of the fixed income securities, which must be of an investment grade that complies with the
respective Fund’s permitted investments.
b) investing the Fund over a wide range of fixed income securities which provides diversification across a
number of sectors and industries, minimising the risk not only of any single company’s securities becoming
worthless, but also of all holdings suffering uniformly adverse business conditions.
c) lengthening or shortening the Fund’s average maturity period of the fixed income investments (within the
Fund’s objective) in anticipation of changing interest rates.
d) selecting investments that are bank or government guaranteed or secured against assets to mitigate
default risk.
The EIM will seek to reduce all risks associated with the Fund by virtue of its experience, the analytical process
and by structuring a broadly diversified investment pool.
Approved Fund Size
The approved Fund size for AMBDA is 1 billion Units.
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AMB Dana Nabeel
Introduction
AMBDN is a high liquidity income Fund, which invests in highly liquid instruments in order to provide investors
the facility to easily shift their funds and take advantage of the market movements.
The investment portfolio of the Fund comprises securities which has been classified as Shariah compliant by
the Shariah Advisory Council of the Securities Commission. For securities which are not certified by the
Shariah Advisory Council, the Shariah Committee Members of the Fund will determine whether the securities
are Shariah compliant for investment by the Fund.
Type of Fund
Income Fund
Category of Fund
Money Market (Shariah) Fund
Investment Objective
The Fund aims to provide investors with high-level liquidity and regular income stream to meet cash flow
requirements based on Shariah principles while maintaining capital preservation*.
*Any material change to the investment objective of the Fund would require Unit Holders’ approval.
Benchmark
Bank Islam Mudharabah Overnight Rate.
Note: Investors are advised that the actual portfolio of the Fund at any given time may consist of a mix of
Shariah-compliants deposits, Islamic money market instruments and Shariah-compliant debentures of varying
tenure and credit rating, as allowed by the Prospectus. Investors are to note that the risk profile of the Fund’s
portfolio may be higher than the risk profile of the benchmark. Therefore, the Fund’s return can be potentially
higher than the benchmark commensurate with the risk profile of the underlying assets of the Fund.
Investment Policy and Strategy
The Fund will be actively managed and its investment policy is to invest in liquid and low risk short term
investments with a high degree of capital preservation*. As such, it intends to provide liquidity to meet the
short-term cash flow requirements of its Unit Holders while providing regular income.
In structuring the portfolio of the Fund, there will be no minimum limit for Shariah-based liquid assets as the
Fund is highly liquid.
The investment policy above applies to the Fund and may be varied by the Investment Committee from time
to time with the knowledge of the Trustee. Depending on the prevailing circumstances, the Fund will adopt a
suitable level of active and frequent trading for the purpose of meeting the Fund’s objective.
The Fund will invest at least 90% of the Fund’s NAV in quality Shariah-compliant deposits, Islamic money
market instruments and Shariah-compliant debentures with maturity of not more than 365 days and up to 10%
of the Fund’s NAV may be invested in Shariah-compliant debentures which have a remaining maturity period
of more than 365 days but less than 732 days. The securities invested in would have a minimum local credit
rating of at least A3 (long- term rating)/P2 (short-term rating) by RAM or equivalent rating agencies.
The strategy for investment in Islamic money market instruments would be driven by the interest rate outlook
for the market over the short and medium term horizon. This will enable the EIM to decide on the maturity
structure for the Fund. As well, the EIM will constantly seek potential credit upgrade issues and avoid
potential downgrade issues to maximise returns to Unit Holders.
The Fund is essentially managed to prioritise the short term liquidity requirements of Unit Holders, while
endeavouring to provide regular income. The EIM will adopt a prudent strategy in forming a portfolio of
Islamic money market instruments which is in accordance with the Fund’s investment objective and the EIM’s
assessment of investment prospects in line with the underlying interest rate and economic outlook.
*Capital preservation does not signify that the capital/principal invested is guaranteed/protected by any party
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The EIM will adopt the following forms of risk management strategies to mitigate the risks inherent in the
Fund:
Diversification across asset classes within the Fund’s permitted investments;
Determining optimal asset allocation;
Adhering to the Fund's investment objectives and investment restrictions and limits;
Imposing limits on exposure to single financial institutions / issuers;
Duration management of the portfolio of Shariah-compliant debentures;
Liquidity management ;
Reviewing the performance of the Fund regularly against the performance of the benchmark; and
Reporting investment matters to the Investment Committee of the Fund.
The investment strategy adheres to the SC Guidelines pertaining to investments for a money market fund. As
such, any changes to these Guidelines would be tantamount to a change in this investment strategy.
The asset allocation for the Fund is as follows:
Minimum 90% in short term Shariah-compliant deposits, Islamic money market instruments and Shariahcompliant debentures with maturity of not more than 365 days.
Up to 10% in short term Shariah-compliant debentures exceeding 365 days but no longer than 732 days.
Specific Potential Risks Associated with AMBDN
While attempts are being made to reduce risks encountered by the portfolio, investors should be advised that
the following risks are inherent in such investments of the Fund:
Interest Rate Risk
Interest rate risk is a general economic indicator that will impact on the management of the Fund regardless of
whether it is a Shariah Fund or otherwise. It does not in any way suggest that the Fund will invest in debt
securities which are not Shariah approved. All the investments for Shariah Fund accord with the Shariah
Principles.
Prices of short-term debt instruments move inversely with interest rates and the degree of price sensitivity to
interest rates is a function of debt securities and coupon maturity as well as the level of interest rates. Even
though the Fund does not invest in interest bearing instruments, the interest rate referred herein is to the
general interest rate of the country which may affect the value of the investment of the Fund. However, given
the short term nature of the investments, the Fund is exposed to minimal interest rate risk.
In order to mitigate interest rate exposure of the Fund, the EIM will manage the duration of the portfolio via
shorter or longer tenured assets depending on the view of the future interest rate trend of the EIM, which is
based on its continuous fundamental research and analysis.
Counterparty Risk
When a Fund conducts over-the-counter (OTC) transactions, it may be exposed to risks relating to the credit
standing of its counterparties and their ability to fulfill the conditions of the contracts it enters into with them.
Hence, it is generally not applicable to transactions performed through exchanges. This risk is mitigated by
performing fundamental credit research and analysis to determine the creditworthiness of the counterparty,
and imposing a credit limit as a precautionary step to limit any loss that may arise directly or indirectly as a
result of a defaulted transaction.
Credit/Default Risk
Credit/default risk refers to the possibility that the issuer of a security may not be able to make interest
payments or repay the principal in a timely manner. This will translate to losses that will reduce the value of
the Fund. Credit/default risk is mitigated by performing continuous fundamental credit research and analysis
to ascertain the creditworthiness of its issuer. In addition, the EIM imposes a minimum rating requirement as
rated by either local and/or foreign rating agencies and manages the duration of the investment in accordance
with the objective of the Fund. For this Fund, the Shariah-compliant debentures must satisfy a minimum
rating requirement of at least A3 (long-term rating)/P2 (short-term) by RAM or equivalent rating agencies.
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Mitigation of Risk
The structure of the Fund is such that it is confined to instruments of short duration to maturity in order to
minimise the impact of fluctuations in interest rate on the performance of the Fund over the short term while
the credit risks it may face are mitigated by strict limits on concentration of investments i.e. diversification and
due diligence in the credit assessments by ensuring high credit ratings as mentioned earlier.
The EIM will seek to reduce all these risks associated with the Fund by virtue of its experience, the analytical
process and by structuring a broadly diversified investment pool.
Approved Fund Size
The maximum approved Fund size for AMBDN is 400 million Units.
Investors should note that investment in the Fund is not the same as placement in a deposit with a
financial institution. There are risks involved and investors should rely on their own evaluation to assess
the merits and risks when investing in the Fund.
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3.2 Permitted Investments for the Conventional Funds
AMBLTF 2014
AMBDTF
AMBLTF Today
AMBETF
AMBEBTF
AMBSCTF
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AMBILTF
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AMBITF
AMBBTF
AMBUTF
Unless otherwise prohibited by the Deed, the Funds are permitted to invest in the following: -
Securities of companies listed on the Bursa Malaysia or any
other market considered as an Eligible Market.
Securities that are not traded in or under the rules of an
Eligible Market may include securities not listed or quoted on
a stock exchange but have been approved by the relevant
regulatory authority for such listing or quotation and are
offered directly to the Fund by the issuer.
Securities in foreign markets where the SC has permitted the
foreign markets for investment and the investment amount
has been approved by Bank Negara Malaysia respectively.
Unlisted securities that have been approved by the SC for
listing and quotation on the Bursa Malaysia, which are offered
directly by the company approved for listing, by way of private
placement or on a tender basis.
Unlisted securities that have been approved by the SC for
listing and quotation on the Bursa Malaysia (including ACE
Market) or any other market considered as an eligible market.
MGS, treasury bills, Bank Negara Malaysia certificates,
Government investment certificates
Malaysia currency balances in hand, Malaysia currency
deposits with commercial banks, investment banks including
negotiable certificates of deposit, bankers’ acceptances and
placement of money at call with investment banks.
Negotiable certificates of deposit, bankers’ acceptances and
placement of money at call with investment banks.
Component stocks of the FBM KLCI.
Cagamas bonds, unlisted loan stocks, corporate bonds, money
market and bank-guaranteed that are carrying at least BBB
rating by RAM or equivalent rating agencies.
Futures contracts traded in a future market of an exchange
company approved, or an exempt futures market declared by
the Minister under the CMSA and securities lending subject to
the provision in the Guidelines. Futures Contracts which
includes the KLCI futures & options contracts, KLIBOR futures
contracts, MGS futures contracts and any other futures
contracts as approved by the stock exchange from time to
time.
AMBDTF
AMBLTF 2014
AMBLTF Today
AMBETF
AMBEBTF
AMBSCTF
AMBILTF
AMBITF
AMBBTF
AMBUTF
Master Prospectus 2011/2012
Futures contracts, for hedging purposes only, traded in futures
market of an exchange approved under the CMSA.
Units or shares of collective investment schemes
Debentures comprising MGS, treasury bills, private debt
securities, asset-backed securities and money market
instruments (includes negotiable certificates of deposits, Bank
Negara bills, Cagamas bonds, repurchase agreements) and
other similar instruments that are available at the over-thecounter market from time to time.
Investments in warrants and derivatives as permitted by the
Guidelines.
Any other kinds of investment as permitted by the SC from
time to time.
Note :
As for AMBUTF, AMBBTF, AMBITF, AMBEBTF, AMBETF, AMBLTF Today and AMBLTF 2014, the Funds have no
intention to invest in securities listed on a foreign stock exchange at the moment.
As for AMBBTF, AMBSCTF, AMBETF, and AMBEBTF the Funds have no intention to invest in futures market at
the moment.
Permitted Investments for PNB SIF
The Fund will invest primarily in permitted investments as stipulated in the Deed. These permitted
investments include:Structured Products
(i) Structured Products are investments with exposure linked to one or more assets such as global
equities, commodities, currencies, interest rates, indices or any other underlying(s) approved by the
Investment Committee.
(ii) All Structured Products chosen by the Fund will include 100% capital protection of the principal
invested upon maturity.
(iii) The EIM should ensure that the composition of the portfolio of the Fund is well diversified at all times.
Strategies on suitable Structured Products should be formulated and be based on the future
prospects of the underlying assets, prospect of the economic growth, political stability and future
market trends.
(iv) All investments in Structured Products must obtain prior approval from the Investment Committee.
PNB REIT
The EIM will invest in PNB REIT during the tenure of the Fund.
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Cash equivalents
(i)
(ii)
(iii)
Deposits with or Securities issued by financial institutions or any other parties approved by relevant
authorities from time to time.
Securities issued by financial institutions or any other parties subject to rating, where applicable,
and other restrictions as set out by the Investment Committee.
All deposits in financial institutions shall not exceed the stipulated exposure limit determined by the
Board of Directors of the EIM and/or the Investment Committee, as the case may be.
For the purpose of this paragraph, “Securities” include debentures, bonds, loans, floating rate notes,
promissory notes, certificates of deposits, commercial papers and other similar securities of a debt nature.
Other Instruments
(i) The Fund may also invest in derivatives and futures contracts as defined in the Act, to assist with the
effective management of the Fund. However, these instruments may not be used to gear the Fund.
(ii) The Fund may invest in any other kind of investments agreed in writing by and between the Manager
and the Trustee and permitted by the SC from time to time .
1.
Cash at hand, GIA, Islamic money market instruments and Shariah-compliant deposits with
licensed financial institution;
2.
Securities of companies listed on the Bursa Malaysia or any other market considered as an
Eligible Market.
3.
4.
5.
6.
7.
8.
9.
10.
Securities that are not traded in or under the rules of an Eligible Market may include
securities not listed or quoted on a stock exchange but have been approved by the relevant
regulatory authority for such listing or quotation and are offered directly to the Fund by the
issuer.
Securities in foreign markets where the SC has approved the foreign markets for
investment and the investment amount has been approved by Bank Negara Malaysia
respectively.
Unlisted securities that have been approved by the SC for listing and quotation on the
Bursa Malaysia.
Government Investment Issues and Cagamas bonds (Shariah-compliant) carrying at least
BBB rating by RAM or equivalent rating agencies.
Mudharabah Investment, sukuk and other money market instruments with local Islamic
commercial banks and investment banks.
Unlisted securities that have been approved by the SC for listing and quotation on the
Bursa Malaysia (including ACE Market), which are offered directly by the company
approved for listing, by way of private placement or on a tender basis.
Units or shares of collective investment schemes provided they are relevant and consistent
with the objective of the Fund.
Islamic futures contracts traded in a futures market of an exchange company approved, or
an exempt futures market declared, by the Minister under the Act and securities lending
subject to the provision in the Guidelines. Participation of the Fund in futures contracts
must be for hedging purposes only.
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AMBDN
AMBDA
No.
AMBDI
Permitted Investments for Shariah Funds
AMBDY
3.3
11.
Islamic PDS generally in the form of Islamic Corporate Bonds or Islamic Commercial Papers
issued by privately held companies or public listed corporations that are traded in eligible
markets. The minimum permissible credit rating for Private Debt Securities Investments is
BBB by RAM or any equivalent rating agencies.
12.
Investments in warrants and derivatives as permitted by the Guidelines.
13.
Any other forms of investments that are in line with the Fund’s objective and as may be
agreed upon by the Manager, the Investment Committee, the Shariah Advisory Council of
the SC and/or Shariah Committee members that are permissible with the Shariah
Principles.
Note:
The investments or investment powers set out above must comply with the Shariah Advisory Council of the SC
and the Shariah Committee of the Funds.
As for AMBDY, AMBDI, and AMBDN the Funds have no intention to invest in securities listed on a foreign stock
exchange at the moment.
As for AMBDA and AMBDN, the Funds have no intention to invest in futures market at the moment.
3.4 Investment Restrictions
The Funds of AMB are also subject to the following restrictions imposed by the Deed and/or the Guidelines:
Investment Exposure Limits
Unlisted Securities
The value of a Fund’s investments in unlisted securities must not exceed 10% of the Fund’s NAV.
Permitted Investment (Applicable to Money Market Fund only)
The value of the Fund’s investment in permitted investments must not be less than 90% of the Fund’s NAV;
The value of the Fund’s investment in permitted investments which have a remaining maturity period of not
more than 365 days must not be less than 90% of the Fund’s NAV; and
The value of the Fund’s investment in permitted investments which have a remaining maturity period of more
than 365 days but fewer than 732 days must not exceed 10% of the Fund’s NAV.
Investment Spread Limits
Ordinary Shares
The value of a Fund’s investments in ordinary shares issued by any single issuer must not exceed 10% of the
Fund’s NAV.
Transferable Securities and Money Market Instruments
The value of a Fund’s investments in transferable securities and money market instruments issued by any
single issuer must not exceed 15% of the Fund’s NAV.
Placement of Deposits
The value of a Fund’s placement in deposits with any single financial institution must not exceed 20% of the
Fund’s NAV.
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Derivatives
For investments in derivatives–
a)
the exposure to the underlying assets must not exceed the investments spread limits stipulated in the
Guidelines; and
b)
the value of a Fund’s over-the-counter (OTC) derivative transaction with any single counter-party
must not exceed 10% of the Fund’s NAV.
Structured Products
The value of a Fund’s investments in structured products issued by a single counter-party must not exceed 15%
of the Fund’s NAV. This single counter-party limit is entirely waived if the counter-party has a minimum longterm rating by any domestic or global rating agency that indicates very strong capacity for timely payment of
financial obligations provided and the structured product has a capital protection feature.
Aggregate Value of a Fund’s Investments
The aggregate value of a Fund’s investments in transferable securities, money market instruments, deposits,
OTC derivatives and structured products issued by or placed with (as the case may be) any single
issuer/institution must not exceed 25% of the Fund’s NAV.
Collective Investment Scheme
The value of a Fund’s investments in units/shares of any collective investment scheme must not exceed 20% of
the Fund’s NAV.
Debentures (Applicable to Bond Fund)
The value of a bond/ fixed income Fund’s investments in debentures issued by any single issuer must not
exceed 20% of the Fund’s NAV.
The single issuer limit for debentures may be increased to 30% if the debentures are rated by any domestic or
global rating agency to be of the best quality and offer highest safety for timely payment of interest/profit and
principal. Where the single issuer limit is increased to 30%, the aggregate value of Fund’s investments in
derivatives, transferable securities, money market instruments, deposits, OTC derivatives and structured
products issued by or placed with (as the case may be) any single issuer/institution must not exceed 30% of
the Fund’s NAV.
Debentures and Money Market Instrument (Applicable to Money Market Fund)
The value of the Fund’s investments in Shariah-compliant debentures and Islamic money market instruments
issued by any single issuer must not exceed 20% of the Fund’s NAV. However, the single issuer limit for
Shariah-compliant debentures may be increased to 30% if the Shariah-compliant debentures are rated by any
domestic or global rating agency to be of the best quality and offer highest safety for timely payment of profit
and principal.
The value of the Fund’s investments in Shariah-compliant debentures and Islamic money market instruments
issued by any group of companies must not exceed 30% of the Fund’s NAV; and
Spread: Group of Companies
Group of Companies
The value of a Fund’s investments in transferable securities and money market instruments issued by any
group of companies must not exceed 20% of the Fund’s NAV.
Group of Companies (Applicable to Bond Fund)
The value of a bond/fixed income Fund’s investments in debentures issued by any group of companies must
not exceed 30% of the Fund’s NAV.
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Investment Concentration Limits
Investment Concentration Limits for Transferable Securities (other than debentures)
A Fund’s investments in transferable securities (other than debentures) must not exceed 10% of the securities
issued by any single issuer.
Investment Concentration Limits for Debentures
A Fund’s investments in debentures must not exceed 20% of the debentures issued by any single issuer.
Investment Concentration Limits for Money Market Instruments
A Fund’s investments in money market instruments must not exceed 10% of the instruments issued by any
single issuer. (Not applicable to money market instruments that do not have a pre-determined issue size).
Investment Concentration Limits for Money Market Instruments (Applicable to Money Market Fund)
The Fund’s investments in Islamic money market instruments must not exceed 20% of the instruments issued
by any single issuer and applicable to money market instruments that do not have a pre-determined issue size.
Investment Concentration Limits for Collective Investment Schemes
The Fund’s investments in collective investment schemes must not exceed 25% of the units/shares in any one
collective investment schemes.
3.5 Exceptions and Exclusions Applicable to the Funds
The investments restrictions and limits must be complied with at all times based on the most up-to-date value
of the Funds' property except for the following conditions:
The limits and restrictions above are not applicable to debentures and securities issued by, or backed by, the
Malaysian government or Bank Negara Malaysia.
The holding of an investment and/or other instrument by the Fund (whether by way of repurchase, exchange,
conversion, rights, bonus, capital reorganisation or other forms of entitlement) may exclude any entitlement
accruing on the investment and/or instrument held. Notwithstanding, the entitlement should not be exercised
if the exercise results in the breach of any limit or restriction. The right of convertibility, may be exercised if it
results in a breach of any limit or restriction, provided there are justifiable reasons and prior approval of the
Trustee has been obtained. Nonetheless, the EIM should, within a time frame of not more than one month
from the date of the breach, take all necessary action to rectify the breach.
A 5% allowance in excess of any limit or restriction may be permitted where the limit or restriction is breached
through an appreciation or depreciation of the NAV of the Fund (whether as a result of an appreciation or
depreciation in value of the investments or as a result of repurchase of Units or payment made from the
Fund). The EIM should not make any further acquisitions where the relevant limit is breached, and the EIM
should within a reasonable period of not more than 3 months from the date of the breach take all necessary
steps and actions to rectify the breach.
For a Fund whose principal objective is to track or replicate an index, the single issuer limit in ordinary shares
of 10% of the Fund’s NAV and the single group limit of 20% of the Fund’s NAV maybe exceeded provided that
the investment in any component securities does not exceed its respective weightings in the underlying index.
3.6 Zakat for Shariah Funds (AMBDY, AMBDI, AMBDA, & AMBDN)
The Funds do not have an obligation to pay zakat. Therefore Unit Holders who wish to do so can contribute of
their own accord.
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4 Investment Process of the Funds
PNB SIF, AMBUTF, AMBBTF, AMBITF, AMBSCTF, AMBEBTF, AMBETF, AMBDY,
AMBDI, AMBDA, and AMBDN
The External Investment Manager adopts a combined top-down and bottom-up approach to investing. This
ensures that the allocation of fund is skewed to the financial asset class, which is expected to give greater
returns in a particular investment environment. For example, in a rising fixed income rates scenario, equities
usually do not perform well and therefore, exposure to this asset class is reduced. In contrast, when fixed
income rates are declining, exposure to equities is increased to maximise returns.
Primary research supported by secondary research is extensively used in making investment decisions. The
outlook of the economy determines how much exposure is given to each sector of the economy. Stocks for
each sector are selected based on investment criteria such as Price/Earning to Growth (PEG) ratio,
management quality, profitability, growth prospects, financial strength and dividend yield. Bonds for each
sector are selected based on investment criteria such as yield to maturity bond duration, credit quality,
profitability, growth prospects, financial strength and structure of the bond. Technical analysis is also used but
only as a guide to time the entry into and exit from the investments. This is because sentiment plays a role in
determining the market direction regardless of the fair valuation of the market.
Global Economic Outlook
Regional Economic Outlook
Malaysian Economy Analysis
Sector Allocation
Securities Selection
We believe superior long-term investment performance can be achieved by exploiting inefficiencies in capital
markets through rigorous and intensive research within a disciplined investment process.
AMBILTF
The Fund aims at replicating the performance of the FBM KLCI as closely as possible. The Fund will invest in a
broad spectrum of stocks that make up the FBM KLCI. The Fund adopts a passive management philosophy
whereby the Fund’s weightings will be adjusted accordingly to ensure close performance with the FBM KLCI.
This means that the External Investment Manager does not conduct extensive company research but conduct
extensive quantitative analysis on the FBM KLCI before buying or selling transactions are executed.
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AMBLTF Today and AMBLTF 2014
Our activities are targeted towards superior equity and fixed income performance over all time periods. Our
growth style of equity selection is driven by fundamental research approach as well as comparative valuation
analysis. Through our internal research team we identify the leaders in growing industries and invest in
companies that demonstrates: • Large and growing market opportunity for their products and services
• Compelling business strategies with robust track records and performances
• Superior management team who can execute the company’s growth plans
We diversify all our equity portfolios by sector, industry and country, and our fixed income portfolios by
issuers, sector, volatility, maturity and credit quality rating. Individual stock selection is based on those issues
that we believe will perform best in the forthcoming economic environment. Our time selection for stocks is 3
to 5 years with adjustments made if short-term conditions warrant. Issues that do not meet our criteria are
sold and replace with more attractive investments.
Our investment style has consistently generate excess return in a risk-controlled manner. Our focus is not just
on excess return per fund but the quality and consistence of our value add, such as achieving steady returns
without taking excessive tracking error or market risk.
AMBDTF
The EIM adopts an absolute return investment philosophy, and thus employs active tactical asset allocation
strategies where necessary. The ability to target consistent positive returns is the cornerstone of its
investment approach and is borne through the combination of experience, focus and knowledge. The EIM
ensures that it has a robust investment process and that its investment personnel are equipped with the
necessary experience and knowledge to produce consistent and reasonable returns. Focus on markets and
strategies will also aid in enhancing consistency of performance.
Generally, the EIM’s approach to investments is based on investment themes. The intention is to identify
multi-year themes and sector trends, and then employing a bottom-up approach in identifying the best stock
ideas within that theme. Excess returns or alpha, is generated through the early identification of such themes
as well as through primary research of under-researched stocks, while with well-covered stocks, the EIM’s
value-add is to challenge the prevailing consensus in arriving at its investment decision. As well, quantitative
and qualitative screens are both employed to determine the attractiveness of investment ideas.
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4.1
Investment Process of the Funds
PNB SIF, AMBUTF, AMBBTF, AMBITF, AMBSCTF, AMBEBTF and AMBDTF
Investment Committee
The External Investment
Manager
Investment
Research Team
- Research and
make investment
recommendations.
Designated Portfolio
Manager
- Review investment policies an investment
portfolio.
- Ensure objectives and guidelines are met.
- Review guidelines for asset allocation and
portfolio strategy;
- Review market outlook set asset allocation
strategy, portfolio construction, stock as
well as bond selection and structured
products (for PNB SIF only).
- Ensure that the
investment policy
and strategy of the
Fund is adhered to.
Dealing
- Execute investment
transactions as
recommended by
the designated
Portfolio Manager.
The investment process in the management of a unit trust portfolio involves the following: (1) Setting up of investment objective;
(2) Establishing an investment policy;
(3) Selecting an investment strategy;
(4) Asset allocation;
(5) Stock, bond selections and structured products (for PNB SIF only); and
(6) Measuring and evaluating performance
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AMBILTF
Clients Investment Objective
Type of Fund : Index-linked Fund
Performance Appraisal
& Review (Equity)
Establish Parameters
(Investment Mandates)
- Comparing performance against
the benchmark (FBM KLCI).
- Monitoring performance at least
once a week.
- Investment Guidelines
and restrictions.
Investment Committee
Compliance
Portfolio Management
& Risk Management
(Equity)
- Monitoring of compliance with the
investment objectives and mandates.
Asset Allocation
- Quantitative analysis on
benchmarking.
- Portfolio modeling.
- Realignment of portfolio through
increase or decrease in weighting.
- Execution of transactions.
- Monitoring of the portfolio.
- Liquidity not more than 10%.
Stock Selection
- Component stocks of FBM KLCI.
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AMBETF
Function
Committee
Ethical Panel of Advisors
- Review
investment
policies
and
investment portfolio.
- Ensure objectives and guidelines are
met.
Investment Committee
External Investment Manager
Investment Research
Team
- Research and
make investment
recommendations
- Advise the Manager on ethical issues to
ensure proper compliance with ethical
principles of the Fund.
- Set investment guidelines in compliance
with ethical principles.
- Monitor the Fund’s activities to ensure
adherence to the above Guidelines.
- To formally meet at least once every 3
months to review the Fund’s
compliance towards the ethical
principles.
- To prepare a report in the Manager’s
annual reports.
- Responsible
for
scrutinizing
the
compliance and transactions report to
ensure investments are in line with
ethical principles.
Designated Portfolio
Manager
- Review guidelines for asset allocation
and portfolio strategy;
- Review market outlook, set asset
allocation
strategy,
portfolio
construction and stock as well as bond
selection.
- Ensure that the
investment policy and
strategy of the Fund is
adhered to.
Dealing
- Execute investment
transactions as
recommended by the
designated Portfolio
Manager.
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AMBETF – DEVIATION PROCEDURE FLOWCHART
Deviation from the Fund’s ethical objectives detected (Infringement is publicly known
or incontestable)
Deviation Report issued
Meeting between External Investment Manager & Ethical Panel of Advisors to
ascertain extent of infringement
Possible actions to be undertaken upon consensus:
Voice concerns to the company’s management
Reduction in portfolio holdings
Removal of company from portfolio with a classification of the stock as not
investable over 5-year period
Duration for above actions is maximum 2 years
If the infringement is serious, the Fund will proceed to directly remove company
from its portfolio. (Maximum time frame of 6 months)
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AMBLTF Today and AMBLTF 2014
EQUITY INVESTMENT STRATEGY & PROCESS
The following investment strategy & process will be adopted: -
Investment Process
Macro Economic Analysis
SECTORAL ANALYSIS
 Industry analysis
 Legislation changes affecting industries
PRE-SELECT STOCK UNIVERSE
 Fundamental valuation
 Relative comparison
IN-DEPTH ANALYSIS





Good growth prospects
Leader in the industry
Strong/Improving balance sheet
New technology/manufacturing process
Strong cash flows
EQUITY SELECTION & PORTFOLIO CONSTRUCTION




Consider liquidity, market capitalisation
Suitability for time horizon of Funds
Constant monitoring after purchase
Sell where fundamentals deteriorated or do not meet
investment criteria.
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FIXED INCOME STRATEGY & PROCESS
The following investment strategy & process will be adopted: -
Investment Process
Macro Economic Analysis
DETERMINE INTEREST RATE CYCLE
 Policy changes affecting interest rates
 Anticipate changes in yield curve
SECTORAL ANALYSIS
 Industries with stable earnings
 Risks or opportunities affecting different sectors
IN-DEPTH ANALYSIS




Cash flows to meet coupon & principal repayments
Availability of security/guarantee
Strong/Improving balance sheet
Corporate governance
BOND SELECTION & PORTFOLIO CONSTRUCTION





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Consider liquidity, size of issue
Rating to be at least investment grade
Suitability for time horizon of Fund vs. interest rate cycle
Constant monitoring after purchase
Sell where fundamentals deteriorated or do not meet
investment criteria
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AMBDY, AMBDI and AMBDA
Committee
Function
Shariah Committee
Investment Committee
The External Investment
Manager
Investment
Research Team
- Research and
make investment
recommendations.
- Advise and interpret issues of Islamic nature.
- Set investment guidelines in compliance with Shariah
Principles.
- Monitor the Fund’s activity to ensure adherence to the above
guidelines.
- To formally meet at least once every 3 months to review the
Fund’s compliance towards the Shariah Principles.
- To prepare a report in the Manager’s annual and interim
report.
- Responsible for scrutinizing the compliance and transactions
report to ensure investments are in line with Shariah Principles.
- Review investment policies and investment portfolio.
- Ensure objectives and guidelines are met.
- Review guidelines for asset allocation and portfolio strategy.
- Review market outlook, set asset allocation strategy, portfolio
construction and stock as well as bond selection.
Designated
Portfolio Manager
- Ensure that the
investment policy
and strategy of the
Fund is adhered to.
Dealing
- Execute investment transactions
as recommended by the
designated Portfolio Manager.
The investment process in the management of a unit trust portfolio involves the setting up of investment
objective, establishing an investment policy, selecting an investment strategy, asset allocation, stock and sukuk
selections; and measuring and evaluating performance.
The investment portfolio of the Funds comprises of securities which have been approved by the SC as
Shariah compliant and classified as Shariah compliant by the Shariah Advisory Council (SAC) of the SC.
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AMBDN
The following investment strategy & process will be adopted: Macro Economic Analysis
DETERMINE INTEREST RATE TRENDS
DEPOSIT & MONEY MARKET
DEBENTURES
IDENTIFY MONEY MARKET
INSTRUMENTS
IDENTIFY DEBENTURES
ISSUANCE
 High quality credit ratings
 Tenors and yields offered
 Industries with stable earnings
 Tenors and liquidity of the instruments
 Yields offered
DETERMINE MATURITY
STRUCTURES
CREDIT ANALYSIS
 Cashflow requirements
 Collection/redemption pattern
 Cash flows to meet profit & principal repayments
 Financial and yield analysis
DEBENTURES EXECUTION
MONEY MARKET EXECUTION
 Within the permissible exposure limits
 With authorized panel of financial institutions
 Liquidity and size of issue
 Suitability for time horizon of Fund versus interest rate cycle
 Within the Guidelines parameters
FUND MANAGEMENT

Constant portfolio monitoring
The investment portfolio of the Fund comprise securities which have been permitted by the SC and
classified as shariah compliant by the Shariah Advisory Council (SAC) of the SC or have been determined
as being Shariah compliant by the Shariah Committee of the Fund
4.1.1 Cleansing Process for Shariah-compliant Funds
Cleansing Process
This refers to a Shariah non-compliant investment inadvertently made by the Manager. The said investment
will be disposed/withdrawn with immediate effect. In the event the investment resulted in gain, the gain is to
be channeled to baitulmal or any other charitable bodies as advised by the Shariah Committee. If the disposal
of the investment resulted in loss to all Shariah-compliant Funds, the loss is to be borne by the Manager.
Purification Process
This refers to the purification by way of payment of zakat by Muslims. All Shariah-compliant Funds do NOT pay
zakat on behalf of Muslim individuals and Islamic legal entities who are investors of these Funds. Thus, Unit
Holders are advised to pay zakat on their own.
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4.2
Bases of Valuation of Investments
PNB SIF
(a) Structured Products Valuation
The valuation of the Structured Products will be done twice a week. As a countercheck on the fair
valuation provided by DBMB, DBMB’s pricing will be verified by the Manager, the EIM or any independent
party and any differences exceeding tolerance levels as may be determined by the Manager impacting the
NAV by more than a pre-defined level will be investigated by the Fund.
DBMB will provide, subject to applicable terms, information on the present value, i.e. marked-to-market
of the relevant Structured Product(s) to the Fund twice a week.
(b) PNB REIT Valuation
Valuation of Real Estate-Related Assets and Non-Real Estate-Related Assets
PHNB, the manager of PNB REIT must carry out, at least once each Business Day or such other frequency
as may be prescribed under the REITs Guidelines, the valuation of Real Estate-Related Assets and NonReal Estate-Related Assets in order to facilitate the valuation of the Fund.
(c) Listed securities will be valued based on the last done market price of the respective exchanges.
(d) Unlisted bonds denominated in Ringgit Malaysia are stated at the indicative market value quoted by a
bond pricing agency (BPA) registered with the SC. Where the Manager is of the view that the price quoted
by BPA for a specific bond differs from the “market price” by more than 20 basis points, the manager or
its fund management delegate may use the “market price”, provided that the manager or its fund
management delegate :(a) records its basis for using a non-BPA price;
(b) obtains necessary internal approvals to use the non-BPA price; and
(c) keeps an audit trail of all decisions and basis for adopting the “market yield”
(e) Other unlisted bonds, the fair value by reference to the average indicative yield quoted by three
independent and reputable institutions.
(f)
Investments such as bank bills and deposits placed with banks or other financial institutions are valued
each day by reference of the nominal value and the accrued interest thereon for the relevant period.
(g) Investments in futures contracts will be “marked to market” at the end of each trading day.
AMBUTF, AMBBTF, AMBITF, AMBILTF, AMBSCTF, AMBEBTF, AMBETF, AMBLTF Today and
AMBLTF 2014
The Funds shall adopt the following bases of valuation of investments prescribed in the Deeds and the
Guidelines:(a)
Listed securities will be valued based on the last done market price of the respective exchanges.
(b) Where no market values are publicly available, including in the event of a suspension in the quotation of
the securities for a period exceeding 14 days, or such shorter period as agreed by the trustee or where
the use of quoted market values is not appropriate, or where the use of quoted market values is not
appropriate, investments shall be valued at fair value, as determined in good faith by the Manager or its
fund management delegate, which have been verified by the auditor and approved by the Trustee.
(c) Unlisted bonds denominated in Ringgit Malaysia are stated at the indicative market value quoted by a
bond pricing agency (BPA) registered with the SC. Where the Manager is of the view that the price quoted
by BPA for a specific bond differs from the “market price” by more than 20 basis points, the manager or
its fund management delegate may use the “market price”, provided that the Manager or its fund
management delegate :(i) records its basis for using a non-BPA price;
(ii) obtains necessary internal approvals to use the non-BPA price; and
(iii) keeps an audit trail of all decisions and basis for adopting the “market yield”
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(d)
Other unlisted bonds, the fair value by reference to the average indicative yield quoted by three
independent and reputable institutions.
(e)
Investments such as bank bills and deposits placed with banks or other financial institutions are valued
each day by reference to the nominal value and the accrued interest/profit thereon for the relevant
period.
(f)
Malaysian currency-denominated cash balances in hand, deposits placed with banks or other financial
institutions and placement of money at call with investment bank are valued each day by reference to
the value of such investments and the profits accrued thereon for the relevant period.
(g)
Investments such as Banker Acceptances, Government and/or any other government-related agencies
Investment Issues (GII), Bank Negara Negotiable Notes, Cagamas Notes, Negotiable Certificate of
Deposit, are valued each day by reference to the value of such investments and the interest/profits
accrued thereon for the relevant period.
(h)
Units in listed collective investment schemes will be valued at last done price and unlisted collective
investment schemes will be valued based on the last published repurchase price.
(i)
Exchange traded financial derivatives will be “marked to market” at the close of each trading day. In
respect of over-the-counter derivatives, the EIM has access to resources of specialists to verify the
reasonableness of the prices quoted by the issuer whenever the Manager considers it necessary to do so.
AMBUTF, AMBBTF, AMBITF, AMBILTF, AMBSCTF, AMBEBTF and AMBETF
The respective EIM calculates the value of investment of the Funds at the end of each Business Day.
AMBLTF Today and AMBLTF 2014
The EIM calculates the value of investment of the equity portion of the Funds at the end of each Business Day,
whereas the Manager calculates the value of investment of the fixed income portion of the Funds at the end of
each Business Day.
AMBDTF
The Fund shall adopt the following bases of valuation of investments prescribed in the Deeds and the
Guidelines:(a) Listed securities will be valued based on the last done market price of the respective exchanges.
(b) Where no market values are publicly available, including in the event of a suspension in the quotation of
the securities for a period exceeding 14 days, or such shorter period as agreed by the trustee or where
the use of quoted market values is not appropriate, or where the use of quoted market values is not
appropriate, investments shall be valued at fair value, as determined in good faith by the Manager or its
fund management delegate, which have been verified by the auditor and approved by the Trustee.
(c) Unlisted bonds denominated in Ringgit Malaysia are stated at the indicative market value quoted by a
bond pricing agency (BPA) registered with the SC. Where the Manager is of the view that the price quoted
by the BPA for a specific bond differs from the “market price” by more than 20 basis points, the manager
or its fund management delegate may use the “market price”, provided that the Manager or its fund
management delegate :(i) records its basis for using a non-BPA price;
(ii) obtains necessary internal approvals to use the non-BPA price; and
(iii) keeps an audit trail of all decisions and basis for adopting the “market yield”
(d) Other unlisted bonds, the fair value by reference to the average indicative yield quoted by three
independent and reputable institutions.
(e) Investments such as bank bills and deposits placed with banks or other financial institutions are valued
each day by reference of the nominal value and the accrued interest thereon for the relevant period.
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(f)
Malaysian currency-denominated cash balances in hand, deposits placed with banks or other financial
institutions and placement of money at call with investment bank are valued each day by reference to
the value of such investments and the profits accrued thereon for the relevant period.
(g)
Investments such as Banker Acceptance, Government and/or any other government-related agencies
Investment Issues (GII), Bank Negara Negotiable Notes, Cagamas Notes, Negotiable Certificate of
Deposit, are valued each day by reference to the value of such investments and the interest/profits
accrued thereon for the relevant period.
(h)
Units in listed collective investment schemes will be valued at last published NAV per unit or other
appropriate method as determined by the Manager and approved by the Trustee and unlisted collective
investment schemes will be valued based on the last published repurchase price.
(i)
Investment in futures contracts e.g. FTSE Bursa KLCI futures contracts, KLIBOR futures contracts, MGS
futures contract traded on Bursa Malaysia Derivatives will be “marked to market” at the end of each
trading day.
(j)
Exchange traded financial derivatives will be “marked to market” at the close of each trading day. In
respect of over-the-counter derivatives, the EIM has access to resources of specialists to verify the
reasonableness of the prices quoted by the issuer whenever the Manager considers it necessary to do so.
The Manager delegates to the Trustee the function of calculating the Net Asset Value and the value of
investment of the Fund after the end of the Business Day. The foreign investment will be valued based on the
last done prices at the close of the respective foreign exchanges.
All foreign investment will be converted into ringgit based on the bid exchange rate quoted by Reuters at 4:00
pm UK time, the same business day.
AMBDY, AMBDI, AMBDA, and AMBDN
The Fund shall adopt the following bases of valuation of investments in accordance with the Guidelines. The
valuation bases for the authorized investments of the Fund are as below:
(a) Unlisted Sukuk denominated in Ringgit Malaysia are stated at the indicative market value quoted by a
bond pricing agency (BPA) registered with the SC.
(b)
Listed Shariah compliant securities will be valued based on the last done market price of the respective
exchange
(c) Where the Manager is of the view that the price quoted by BPA for a specific Sukuk differs from the
“market price” by more than 20 basis points, the Manager or the EIM may use the “market price”,
provided that the Manager or the EIM :
(i) records its basis for using a non-BPA price;
(ii) obtains necessary internal approvals to use the non-BPA price; and
(iii) keeps an audit trail of all decisions and basis for adopting the “market yield”.
(d) In the absence of BPA pricing, unlisted Sukuk will also use the fair value by reference to the average
indicative yield quoted by three independent and reputable institutions.
(e)
Islamic money market instruments such as bank bills and deposits placed with financial institutions are
valued each day by reference to the nominal value and the accrued profit thereon for the relevant
period.
(f)
Units in unlisted Shariah-based collective investment schemes are valued at the last published
repurchase price or if not available, based on methods deemed to be fair and reasonable as agreed upon
by the Manager and Trustee.
(g)
Other unlisted bonds, the fair value by reference to the average indicative yield quoted by three
independent and reputable institutions.
The EIM calculates the value of investment of the Fund at the end of each Business Day.
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4.3
Policy on Gearing and Liquid Assets
There shall be at all times a level of sufficient liquid assets in the Funds to pay for the repurchase of Units. The
Funds are allowed to borrow cash for the purpose of meeting repurchase requests for Units. However the
Manager should ensure that the Funds’ cash borrowing is only on a temporary basis and the borrowings are
not persistent. The borrowing period should also not exceed 1 month and the aggregate borrowings of the
Funds should not exceed 10% of the respective Funds’ NAV at the time it is incurred. All Funds may only
borrow from financial institutions. Except for securities lending provided by the Guidelines, none of the cash or
investments of the Funds may be lent. Further, the Funds may not assume, guarantee, endorse or otherwise
become directly or contingently liable for or in connection with any obligation or indebtedness of any person.
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5 Funds’ Performance
PNB Structured Investment Fund
Average Total Return of PNB SIF for the Financial Years Ended 31 July 2010
1- Year
Since Launch
PNB SIF (%)
6.89
5.44
Benchmark (%)
2.59
2.93
Annual Total Return for the for the Financial Years Ended 31 July
2010
2009
PNB SIF (%)
6.89
5.03
Benchmark (%)
2.59
3.10
1-Year Fund Performance Review
The fund’s outperformance as compared to its benchmark was attributed to the diversification strategy
adopted by the fund throughout the year. The fund was invested across 5 different asset classes, namely PNB
REIT, structured products, equity, fixed income and cash equivalent instruments. The mixed nature of the
investment portfolio ensured that the NAV was above par throughout the whole year, as no one asset class
dominated the NAV performance of the fund.
Distribution as at 31 July
2010
12 May 2008 (date of launch)
to 31 July 2009
Gross Distribution per Unit (sen)
3.75
3.25
Net Distribution per Unit (sen)
3.75
3.25
Distribution is in the form of cash.
Asset Allocation as at 31 July
2010 (%)
Structured Products
PNB REITs
Quoted investment
Unquoted Fixed Income Securities
Money Market and Others
33.04
30.35
19.17
1.96
15.48
12 May 2008 (date of launch)
to 31 July 2009 (%)
37.20
30.60
Nil
Nil
32.20
The fund continued to be invested in a diversified portfolio of PNB REIT, structured products and money
market instruments for financial year end 31 July 2010. However, the large decrease in allocation to money
market instruments is due to the addition of equities in August 2009. The fund included equity in its
investment portfolio as it foresees the equity asset class to be a main beneficiary of the world economic
recovery. The addition of equities helped to further diversify the fund, and helped the fund in posting a steady
growth in its NAV, generating income and outperforming its benchmark
.
Portfolio Turnover Ratio (PTR) as at 31 July
12 May 2008 (date of launch)
to 31 July 2009
PTR (times)
0.39
0.36
There was no significant change in the portfolio turnover rate.
2010
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AMB Unit Trust Fund
Average Total Return of AMBUTF for the Financial Years Ended 30 June 2011
1- Year
3- Year
5- Year
10- Year
AMBUTF (%)
25.53
10.37
9.05
8.37
Benchmark (%)
18.39
9.24
10.56
9.35
Annual Total Return for the Financial Years Ended 30 June
2011
2010
AMBUTF (%)
25.53
Benchmark (%)
18.39
2009
2008
2007
2006
2005
2004
2003
2002
22.75 (12.75)
(13.17)
31.98
7.68
(4.17)
7.85
(1.67)
30.62
19.79
(10.83)
42.94
3.01
8.35
18.48
(4.62)
22.34
(9.33)
1-Year Fund Performance Review
The Fund registered a total return of 25.53% against its benchmark’s total return of 18.39%, thus
outperformed the benchmark’s return by 7.14%. In terms of capital growth, the NAV per unit of AMBUTF has
increased to RM0.7666 as at 30 June 2011 from RM0.6107 as at 30 June 2010. The Fund managed to
outperform the benchmark due to its asset allocation and stock selection. The performance was contributed
by its overweight position in the banking and oil & gas (O&G) sectors. AMBUTF also focused on several
investment themes including economic recovery, beneficiaries of pump priming, especially the construction
sector with the potential roll out of the MRT project and new expressways, and finally, mergers and
acquisitions (M&As).
The existing benchmark came into force on 17 November 2008. Previously the benchmark was Kuala Lumpur
Composite Index. The benchmark was revised to better reflect the Fund’s asset allocation and investment
strategy.
Distribution as at 30 June
2011
2010
2009
Gross Distribution per Unit (sen)
Nil
Nil
Nil
Net Distribution per Unit (sen)
Nil
Nil
Nil
2011(%)
2010 (%)
2009 (%)
Equities
85.84
79.68
60.97
Liquid Assets and Others
14.16
20.32
39.03
Asset Allocation as at 30 June
The Fund increased its exposure in equities mainly in banking and oil & gas sectors as well as construction
sectors which benefitted from the economic recovery.
Portfolio Turnover Ratio (PTR) as at 30 June
PTR (times)
2011
2010
2009
0.36
0.53
0.78
The lower PTR over the financial year 2011 as a result of lower trading activities undertaken by the Fund.
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AMB Balanced Trust Fund
Average Total Return of AMBBTF for the Financial Years Ended 30 September 2010
1- Year
3- Year
5- Year
10- Year
AMBBTF (%)
14.33
1.91
6.24
6.40
Benchmark (%)
10.39
4.14
5.88
5.69
Annual Total Return for the Financial Years Ended 30 September
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
AMBBTF (%)
14.33
11.36
(16.86)
22.16
4.30
(3.19)
(1.59)
13.37
11.81
(4.19)
Benchmark (%)
10.39
9.98
(6.95)
14.84
4.15
7.09
11.24
10.55
4.30
(6.26)
1-Year Fund Performance Review
The Fund registered a total return of 14.33% against its benchmark’s total return of 10.39%. Th Fund
outperformed the benchmark’s return by 3.94%. The Fund’s NAV per unit increased from RM0.6223 as at 30
September 2009 to RM0.7115 as at 30 September 2010. The Fund managed to outperform the benchmark due
to its asset allocation and stock selection.
The existing benchmark came into force on 30 July 2009. Previously the benchmark was 50% of the Kuala
Lumpur Composite Index, 40% of the 5-year Malaysian Government Securities and 10% of the 3-month Kuala
Lumpur Interbank Offered Rates. The benchmark was revised to better reflect the Fund’s asset allocation and
investment strategy.
Distribution as at 30 September
2010
2009
2008
Gross Distribution per Unit (sen)
Nil
Nil
Nil
Net Distribution per Unit (sen)
Nil
Nil
Nil
2010 (%)
2009 (%)
2008 (%)
Equities
59.79
55.70
46.39
Fixed Income Securities
29.59
35.92
33.27
Liquid Assets and Others
10.62
8.38
20.34
Asset Allocation as at 30 September
The Fund increased in exposure in equity especially in Oil & Gas, Telecommunications and Construction sectors
which was in line with the positive view on the market. The Fund was also overweight on corporate bonds
versus Malaysian Government Securities (MGS) as the lack of supply in the corporate bond segment increased
bond price. The portfolio duration was also lengthened in anticipation of the corporate bond yield curve
flattening. The Fund stayed fully invested throughout the period under review
Portfolio Turnover Ratio (PTR) as at 30 September
PTR (times)
2010
2009
2008
0.84
1.42
0.76
The lower PTR over the financial year 2010 as a result of lower trading activities undertaken by the Fund.
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AMB Income Trust Fund
Average Total Return of AMBITF for the Financial Years Ended 30 June 2011
1- Year
3- Year
5- Year
10- Year
AMBITF (%)
7.69
0.95
(2.07)
1.53
Benchmark (%)
2.98
2.92
3.24
3.53
Annual Total Return for the Financial Years Ended 30 June
2011
2010
AMBITF (%)
7.69
8.89
Benchmark (%)
2.98
2.54
2009
2008
(12.27) (14.95)
3.22
3.71
2007
2006
2005
2004
2003
2002
2.95
2.94
7.60
4.52
6.51
4.77
3.73
3.71
3.76
3.76
3.92
4.12
1-Year Fund Performance Review
The Fund registered a total return of 7.69% against its benchmark’s total return of 2.98%, thus outperformed
the benchmark’s return by 4.28%. In terms of capital growth, the NAV per unit of AMBITF has increased to
RM0.8083 as at 30 June 2011 from RM0.7506 as at 30 June 2010. The Fund managed to outperform the
benchmark due to its asset allocation strategy employed.
The existing benchmark came into force on 17 November 2008. Previously the benchmark was 50% of the
Kuala Lumpur Composite Index, 40% of the 5-year Malaysian Government Securities and 10% of the 3-month
Kuala Lumpur Interbank Offered Rates. The benchmark was revised to better reflect the Fund’s asset
allocation and investment strategy.
Distribution as at 30 June
2011
2010
2009
Gross Distribution per Unit (sen)
Nil
Nil
Nil
Net Distribution per Unit (sen)
Nil
Nil
Nil
2011 (%)
2010 (%)
2009 (%)
Fixed Income Securities
96.71
88.65
70.01
Liquid Assets and Others
3.29
11.35
29.99
Asset Allocation as at 30 June
The Fund’s cash holdings was reduced while the portfolio’s average credit rating was brought down to
between AA2 to AA3 from AA1 to AA2 previously. This was in line with the Fund’s strategy to underweight
cash, and overweight AA and A rated corporate bonds relative to Malaysian Government Securities (MGS).
Portfolio duration was lengthened from 2 years to 3.5 years.
Portfolio Turnover Ratio (PTR) as at 30 June
PTR (times)
2011
2010
2009
0.74
0.74
0.86
There was no significant change in the portfolio turnover rate.
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AMB Index-Linked Trust Fund
Average Total Return of AMBILTF for the Financial Years Ended 31 October 2010
1- Year
3- Year
5- Year
Since Launch
AMBILTF (%)
21.05
5.84
12.91
10.84
Benchmark (%)
21.11
2.13
10.58
7.98
Annual Total Return for the Financial Year Ended 31 October
2010
2009
2008
2007
2006
2005
2004
2003
AMBILTF (%)
21.05
46.29
(34.25)
44.20
9.35
7.88
9.94
24.02
Benchmark (%)
21.11
43.96
(38.83)
43.04
8.51
5.76
5.39
23.89
1-Year Fund Performance Review
For the financial year under review, the Fund registered a total return of 21.05% against its benchmark’s total
return of 21.11%. The Fund marginally underperformed the benchmark’s return by 0.06%. In terms of its
capital, the Fund registered a capital gain of 9.19% based on the increase of its NAV per unit from RM0.7833 as
at 31 October 2009 to RM0.8553 (ex-distribution) as at 31 October 2010.
Distribution as at 31 October
2010
2009
2008
Gross Distribution per Unit (sen)
9.29
9.30
Nil
Net Distribution per Unit (sen)
9.00
8.88
Nil
2010 (%)
2009 (%)
2008 (%)
Equities
104.24
110.17
97.09
Liquid Assets and Others
(4.24)
(10.17)
2.91
Distribution is in the form of reinvestment.
Asset Allocation as at 31 October
In order to meet the objective of replicating the Index closely, the Fund’s strategy during the period under
review is to effectively rebalance the portfolio as and when it is deemed necessary to closely track the
performance of the target benchmark, FTSE Bursa Malaysia KLCI (FBMKLCI).
Portfolio Turnover Ratio (PTR) as at 31 October
PTR (times)
2010
2009
2008
0.25
0.36
0.27
The lower PTR over the financial year 2010 as a result of lower trading activities undertaken by the Fund.
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AMB SmallCap Trust Fund
Average Total Return of AMBSCTF for the Financial Years Ended 31 July 2010
1- Year
3- Year
5-Year
Since Launch
AMBSCTF (%)
18.70
(2.16)
2.39
(2.36)
Benchmark (%)
19.61
1.75
14.42
9.43
Annual Total Return for the Financial Years Ended 31 July
2010
2009
2008
2007
2006
2005
AMBSCTF (%)
18.70
(1.72)
19.72
28.88
(6.79)
(16.39)
Benchmark (%)
16.63
7.46
(18.01)
74.92
6.49
2.68
1-Year Fund Performance Review
The Fund’s total return was 18.70% whilst the benchmark’s total return was 16.63%. The Fund outperformed
the benchmark by 2.07%. The NAV per unit of the Fund increased to RM0.3788 as at 31 July 2010 from
RM0.3192 as at 31 July 2009. The Fund outperformed the benchmark mainly due to asset allocation and
careful stock selection.
The existing benchmark came into force on 28 November 2008. Previously the benchmark was FTSE Bursa
Malaysia EMAS Index. The benchmark was revised to better reflect the Fund’s asset allocation policy, strategy
and investment objective.
Distribution as at 31 July
2010
2009
Gross Distribution per Unit (sen)
Nil
Nil
Net Distribution per Unit (sen)
Nil
Nil
2010 (%)
2009 (%)
2008 (%)
Equities
80.49
66.08
68.79
Liquid Assets and Others
19.51
33.92
31.21
Asset Allocation as at 31 July
The Fund was positioned to be overweight in equities as several key leading economic indicators were showing
signs of bottoming out. In addition, the economic climate was improving and corporate earnings were
recovering. The EIM also focused on several investment themes including economic recovery, beneficiaries of
pump priming and mergers & acquisitions. In addition, the EIM specifically selected growing small market
capitalization companies with niche positioning, superior margins and global reach.
Portfolio Turnover Ratio (PTR) as at 31 July
PTR (times)
2010
2009
2008
0.77
0.92
0.90
There was no significant change in the portfolio turnover rate.
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AMB Enhanced Bond Trust Fund
Average Total Return of AMBEBTF for the Financial Years Ended 31 March 2011
1- Year
3- Year
5-Year
Since Launch
AMBEBTF (%)
8.27
4.60
(2.96)
(0.73)
Benchmark (%)
4.34
4.15
4.25
4.04
Annual Total Return for the Financial Years Ended 31 March
2011
2010
2009
2008
2007
2006
2005
AMBEBTF (%)
8.27
4.64
1.02
(29.80)
2.79
5.76
1.08
Benchmark (%)
4.34
3.25
4.85
3.45
5.38
4.12
3.04
1-Year Fund Performance Review
The Fund registered a total return of 8.27% against its benchmark’s total return of 4.34%. The Fund
outperformed the benchmark’s return by 3.93%. The NAV per unit of AMBEBTF increased to RM0.4057 as at
31 March 2011 from RM0.3747 as at 31 March 2010. The outperformance of the Fund was due to the asset
allocation strategy employed and profit taking on selected stocks.
The existing benchmark came into force on 30 July 2009. Previously the benchmark was 85% of the 5-year
Malaysian Government Securities and 15% of the 3-month Kuala Lumpur Interbank Offered Rate.The
benchmark was revised to better reflect the Fund’s asset allocation and investment strategy.
Distribution as at 31 March
2011
2010
2009
Gross Distribution per Unit (sen)
Nil
Nil
Nil
Net Distribution per Unit (sen)
Nil
Nil
Nil
2011 (%)
2010 (%)
2009 (%)
Fixed Income Securities
79.32
89.86
88.82
Equities
8.26
5.82
1.94
Liquid Assets and Others
12.42
4.32
9.24
Asset Allocation as at 31 March
The Fund’s exposure in equities was increased for the financials, oil & gas, construction, gloves, and property
sectors. The Fund stayed invested in corporate bonds for the 1-year period under review in line with its
strategy of overweighting corporate bonds versus MGS. The weighted average portfolio rating was extended
from between AA1-AA2 to between AA2-AA3, in line with the strategy of going down the credit curve for yield
enhancement.
Portfolio Turnover Ratio (PTR) as at 31 March
PTR (times)
2011
2010
2009
1.01
0.54
0.64
The PTR is higher than the previous year due to the increase in the number of transactions (acquisitions and
disposals)
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AMB Ethical Trust Fund
Average Total Return of AMBETF for the Financial Years Ended 31 August 2010
1- Year
3- Year
5-Year
Since Launch
AMBETF (%)
18.92
11.52
18.87
16.69
Benchmark (%)
19.66
4.75
12.24
12.88
Annual Total Return for the Financial Years Ended 31 August
2010
2009
2008
2007
2006
2005
2004
AMBETF (%)
18.92
17.51
(1.50)
54.01
6.94
3.86
0.84
Benchmark (%)
19.66
10.57
(13.14)
39.13
6.37
4.48
8.18
1-Year Fund Performance Review
The Fund registered a total return of 18.92% against its benchmark’s total return of 19.66%, thus slightly
underperformed the benchmark’s return by 0.74%. However, the NAV per unit increased to RM0.8220 as at
31 August 2010 from RM0.6754 as at 31 August 2009.
On 31 August 2010, the Fund exercised a unit split of 1:2 and declared an income distribution of 4.00 sen per
unit to its unitholders registered as at August 31, 2010. Hence, the NAV per unit decreased accordingly to
RM0.5088.
Distribution as at 31 August
2010
2009
2008
2007
Gross Distribution per Unit (sen)
4.00
9.03
11.70
3.50
Net Distribution per Unit (sen)
3.91
8.88
11.10
2.86
2010 (%)
2009 (%)
2008 (%)
2007 (%)
Equities
74.98
76.71
63.96
76.92
Liquid Assets and Others
25.02
23.29
36.04
23.08
Distribution is in the form of reinvestment.
Asset Allocation as at 31 August
Tthe Fund was well weighted in equities and focused on several investment themes including economic
recovery with a focus on banks, beneficiaries of pump priming especially the construction sector with the
potential roll out of the MRT project and new expressways, and mergers and acquisitions (M&As).
Portfolio Turnover Ratio (PTR) as at 31 August
PTR (times)
2010
2009
2008
2007
0.89
1.28
1.43
1.96
The PTR has decreased as a result of the increase in total NAV resulted from the improvement of the fund’s
performance.
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AMB Lifestyle Trust Fund Today
Average Total Return of AMBLTF Today for the Financial Years Ended 30 September 2010
1- Year
3-year
5-year
Since Launch
AMBLTF Today (%)
6.37
4.19
5.54
5.35
Benchmark (%)
8.85
4.25
5.60
5.32
Annual Total Return for the Financial Years Ended 30 September
2010
2009
2008
2007
Since
Launch
AMBLTF Today (%)
6.37
5.36
1.38
11.65
3.42
Benchmark (%)
8.85
10.49
(4.64)
11.01
4.25
1-Year Fund Performance Review
The Fund registered a total return of 6.37% against its benchmark’s total return of 8.85%, thus
underperformed the benchmark’s return by 2.48%. However, in terms of its capital, the Fund registered a
capital gain of 2.44% based on the increase of its NAV per unit from RM0.5087 as at 30 September 2009 to
RM0.5211 (ex-distribution) as at 30 September 2010.
The existing benchmark came into force on 17 November 2008. Previously the benchmark was 80% of the
12-month fixed deposit rate and 20% of the FBM Emas Index. The benchmark was revised to better reflect the
Fund’s asset allocation and investment strategy.
Distribution as at 30 September
2010
2009
2008
2007
Gross Distribution per Unit (sen)
2.00
1.60
3.50
2.00
Net Distribution per Unit (sen)
1.97
1.59
3.41
1.86
2010 (%)
2009 (%)
2008 (%)
2007 (%)
Fixed Income Securities
62.13
70.35
84.50
80.84
Equities
16.82
6.76
6.73
18.09
Liquid Assets and Others
21.05
22.89
8.77
1.07
Distribution is in the form of reinvestment.
Asset Allocation as at 30 September
The Fund preferred corporate debt issues with good credit quality over government securities as the former
offer more attractive yield premium. In addition, the portfolio is likely to benefit from further tightening of
credit spreads given the improved credit fundamentals. The Fund also focused on several investment themes
including economic recovery with a focus on banks; beneficiaries of pump priming, especially the construction
sector with the potential roll out of the MRT project and new expressways; and mergers and acquisitions
(M&As).
Portfolio Turnover Ratio (PTR) as at 30 September
PTR (times)
2010
2009
2008
0.78
0.37
0.51
The PTR has increased due to the increase in the total number of transactions.
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AMB Lifestyle Trust Fund 2014
Average Total Return of AMBLTF 2014 for the Financial Years Ended 30 September 2010
1- Year
3-year
5-year
Since Launch
8.47
5.90
AMBLTF 2014 (%)
11.00
5.90
9.45
Benchmark (%)
11.12
3.98
6.48
Annual Total Return for the Financial Years Ended 30 September
2010
2009
2008
2007
Since
Launch
AMBLTF 2014 (%)
11.00
8.83
(1.98)
26.87
4.35
Benchmark (%)
11.12
13.98
(10.09)
21.02
4.84
1-Year Fund Performance Review
The Fund registered a total return of 11.00% against its benchmark’s total return of 11.12%, thus
underperformed the benchmark’s return by 0.12%. However, the Fund registered a capital gain of 1.30%
based on the increase of its NAV per unit from RM0.5157 as at 30 September 2009 to RM0.5224 (exdistribution) as at 30 September 2010.
The existing benchmark came into force on 17 November 2008. Previously the benchmark was based on its
respective target asset allocations as follows:
TAA1-46% of the FBM Emas Index and 54% of the fixed deposit rate, TAA2- 40% of the FBM Emas Index and
60% of the fixed deposit rate, TAA3-34% of the FBM Emas Index and 66% of the fixed deposit rate, TAA4- 27%
of the FBM Emas Index and 73% of the fixed deposit rate. The benchmark was revised to better reflect the
Fund’s asset allocation and investment strategy.
Distribution as at 30 September
2010
2009
2008
2007
Gross Distribution per Unit (sen)
5.00
5.00
5.50
2.40
Net Distribution per Unit (sen)
4.94
4.98
5.42
2.19
2010
2009 (%)
2008 (%)
2007 (%)
Fixed Income Securities
30.32
41.93
44.44
51.67
Equities
34.66
35.85
16.77
37.56
Liquid Assets and Others
35.02
22.22
38.79
10.77
Distribution is in the form of reinvestment.
Asset Allocation as at 30 September
The Fund preferred corporate debt issues with good credit quality over government securities as the former
offer more attractive yield premium. In addition, the portfolio is likely to benefit from further tightening of
credit spreads given the improved credit fundamentals. The Fund also focused on several investment themes
including economic recovery with a focus on banks; beneficiaries of pump priming, especially the construction
sector with the potential roll out of the MRT project and new expressways; and mergers and acquisitions
(M&As).
Portfolio Turnover Ratio (PTR) as at 30 September
PTR (times)
2010
2009
2008
0.72
0.32
0.92
The lower PTR in 2009 was due to fewer transactions done during that financial year.
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AMB Dividend Trust Fund
Average Total Return of AMBDTF for the Financial Years Ended 30 April 2011
1- Year
3-Year
Since Launch
AMBDTF (%)
20.62
14.60
15.93
Benchmark (%)
11.22
5.45
8.80
Annual Total Return for the Financial Years Ended 30 April
2011
2010
2009
2008
AMBDTF (%)
20.62
34.40
(7.37)
10.04
Benchmark (%)
11.22
25.63
(16.10)
(2.66)
1-Year Fund Performance Review
The Fund registered a total return of 20.62% against its benchmark’s total return of 11.22%, thus
outperformed the benchmark’s return by 9.40%. The NAV per unit of the Fund as at 30 April 2011 is RM0.2664
(ex-distribution) compared with the NAV as at 30 April 2010 which was RM0.2872. The Fund outperformed
due to the asset allocation strategy employed in accordance with its objectives of providing income and capital
gains to investors, using a low volatility strategy. This was done through focusing on high dividend yielding
stocks and stocks which are trading below their fundamental value due to the economic crisis sell-off.
The existing benchmark came into force on 17 November 2008. Previously the benchmark was 70% of the
weighted average of the Kuala Lumpur Composite Index and 30% of the Maybank 12-month fixed deposit rate.
The benchmark was revised to better reflect the Fund’s asset allocation and investment strategy.
Distribution as at 30 April
2011
2010
2009
2008
Gross Distribution per Unit (sen)
8.00
8.00
1.00
2.03
Net Distribution per Unit (sen)
7.94
7.95
0.83
1.57
2011
2010 (%)
2009 (%)
2008 (%)
Equities
79.55
90.53
70.41
70.22
Collective Investment Scheme
29.80
21.95
12.50
13.52
Liquid Assets and Others
(9.35)
(12.48)
17.09
16.26
Distribution is in the form of cash and reinvestment.
Asset Allocation as at 30 April
The Fund reduced its exposure in equities in sectors like manufacturing and services and increased its
exposure in collective investment scheme especially in foreign property trust.
Portfolio Turnover Ratio (PTR) as at 30 April
PTR (times)
2011
2010
2009
2008
0.72
0.90
0.49
0.48
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AMB Dana Yakin
Average Total Return of AMBDY for the Financial Years Ended 30 April 2011
1- Year
3- Year
5- Year
Since Launch
AMBDY (%)
17.32
5.56
8.40
6.90
Benchmark (%)
15.85
7.05
12.78
8.80
Annual Total Return for the Financial Years Ended 30 April
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
AMBDY (%)
17.32
26.01
(20.46)
(7.58)
37.76
3.00
(5.69)
27.01
(61.68)
44.47
Benchmark (%)
15.85
32.51
(20.10)
(3.09)
49.31
6.61
(1.79)
31.29
(7.99)
31.83
1-Year Fund Performance Review
The Fund registered a total return of 17.32% against its benchmark’s total return of 15.85%, thus
outperformed the benchmark’s return by 1.47%. The NAV per unit of the Fund increased to RM0.5724 as at 30
April 2011 from RM0.4879 as at 30 April 2010. The fund managed to outperform the benchmark due to asset
allocation and stock selection. This performance was helped by its overweight position in the property and oil
& gas (O&G) sectors. The fund also focused on several investment themes including economic recovery,
beneficiaries of pump priming, especially the construction sector with the potential roll out of the Mass Rail
Transit (MRT) project and new expressways, and finally, mergers and acquisitions.
The existing benchmark came into force on 17 November 2008. Previously the benchmark was FBM EMAS
Shariah Index. The benchmark was revised to better reflect the Fund’s asset allocation and investment
strategy.
Distribution as at 30 April
2011
2010
2009
2008
Gross Distribution per Unit (sen)
Nil
Nil
Nil
Nil
Net Distribution per Unit (sen)
Nil
Nil
Nil
Nil
2011 (%)
2010 (%)
2009 (%)
2008 (%)
86.17
82.35
46.48
77.63
Nil
Nil
11.08
7.43
13.83
17.65
42.44
14.94
Asset Allocation as at 30 April
Equities
Islamic Fixed Income Securities
Mudharabah Deposits and Others
The Fund increased its exposure in equities in properties and oil & gas sectors while reducing its cash holdings
to maximize the Fund’s returns.
Portfolio Turnover Ratio (PTR) as at 30 April
PTR (times)
2011
2010
2009
2008
0.46
0.97
1.90
0.98
The PTR is lower than the previous year due to the increase in the total number of transactions (acquisitions
and disposals)
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AMB Dana Ikhlas
Average Total Return of AMBDI for the Financial Years Ended 30 November 2010
1- Year
3- Year
5- Year
Since Launch
AMBDI (%)
15.16
5.72
9.50
5.95
Benchmark (%)
15.47
2.48
11.09
9.70
Annual Total Return for the Financial Years Ended 30 November
2010
2009
2008
2007
2006
2005
2004
2003
AMBDI (%)
15.16
26.49
(18.87)
14.88
8.95
(9.08)
0.65
18.95
Benchmark (%)
15.47
31.17
(28.94)
28.58
21.31
(12.43)
8.06
16.66
1-Year Fund Performance Review
The Fund registered a total return of 15.16% against its benchmark’s total return of 15.47%. Thus, the Fund
underperformed the benchmark’s return by 0.31%. The NAV per unit of the Fund increased to RM0.6031 as at
30 November 2010 from RM0.5237 as at 30 November 2009. The Fund adopted balanced fund strategy of
underweighting fixed income relative to equities as the global recovery growth story gained traction.
Additionally, the Fund maintained investments in corporate bonds as corporate bonds provided better yield
enhancement compared to MGS. The Fund also maintained a relatively high equity exposure in line with the
positive view of the market.
The existing benchmark came into force on 17 November 2008. Previously the benchmark was 65% of the FBM
Emas Shariah Index and 35% of the 12-month mudharabah deposit profit rate. The benchmark was revised to
better reflect the Fund’s asset allocation and investment strategy.
Distribution as at 30 November
2010
2009
2008
2007
Gross Distribution per Unit (sen)
Nil
Nil
Nil
Nil
Net Distribution per Unit (sen)
Nil
Nil
Nil
Nil
2010 (%)
2009 (%)
2008 (%)
2007 (%)
Equities
65.58
63.91
35.12
47.83
Islamic Fixed Income Securities
27.11
29.43
41.22
27.03
Mudharabah Deposits and Others
7.31
6.66
23.66
25.14
Asset Allocation as at 30 November
The Fund maintained its asset allocation in underweighting fixed income relative to equities on the positive
view of the global economic recovery.
Portfolio Turnover Ratio (PTR) as at 30 November
PTR (times)
2010
2009
2008
2007
1.11
1.22
0.58
0.88
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AMB Dana Arif
Average Total Return of AMBDA for the Financial Years Ended 31 May 2011
1- Year
3- Year
5-Year
Since Launch
AMBDA (%)
5.98
8.48
4.86
3.94
Benchmark (%)
3.05
3.06
3.31
3.29
Annual Total Return for the Financial Years Ended 31 May
2011
2010
2009
2008
2007
2006
2005
AMBDA (%)
5.98
11.76
7.25
(11.93)
12.77
0.78
7.56
Benchmark (%)
3.05
2.86
3.27
3.72
3.64
3.26
3.28
1-Year Fund Performance Review
The Fund registered a total return of 5.98% against its benchmark’s total return of 3.05%, thus outperformed
the benchmark’s return by 2.93%. The NAV per unit of the Fund after income distribution of 1.70 sen on 1
December 2010, increased to RM0.5609 as at 31 May 2011 from RM0.5453 as at 31 May 2010. The Fund’s
portfolio’s average credit rating was maintained at between AA2 to AA3. This was in line with the Fund’s
strategy to keep an overweight position in corporate bonds relative to MGS. Portfolio duration was
lengthened from 2 years to 4 years.
The existing benchmark came into force on 17 November 2008. Previously the benchmark was 12-month profit
rate of the Al-Mudharabah General Investment Account of Maybank. The benchmark was revised to better
reflect the Fund’s asset allocation and investment strategy.
Distribution as at 31 May
2011
2010
2009
2008
Gross Distribution per Unit (sen)
Nil
Nil
Nil
Nil
Net Distribution per Unit (sen)
Nil
Nil
Nil
Nil
2011
2010 (%)
2009 (%)
2008 (%)
Islamic Fixed Income Securities
79.19
89.07
92.15
92.16
Mudharabah Deposit and Others
20.83
10.93
7.85
7.84
Asset Allocation as at 31 May
The Fund exposure in fixed income securities was reduced due to the disposals of some corporate bonds.
Portfolio Turnover Ratio (PTR) as at 31 May
PTR (times)
2011
2010
2009
2008
1.30
0.58
0.32
0.33
The increase in the PTR was due to the increase in trading activity during that financial year.
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AMB Dana Nabeel
As this Fund is newly launched, there are no performance statistics as yet.
1. The average total return of all the Funds above are based on the following calculation;
1/n
Annualised return (%) = [ { (1 + r1) (1 + r2)……………(1 + rn)
Where
} – 1 ] x 100
r = rate of return
n = number of years
2. The total return of all the Funds above are based on the following calculation;
NAV per unit on ex
Capital return (%) =
date
- 1 x 100
NAV per unit at the beginning of the financial year
Income Distributi on
Income return (%) =
x 100
NAV per unit at the beginning of the financial year
Total return (%)
= Capital Return(%) + Income Return (%)
Portfolio Turnover Ratio (PTR)
Portfolio turnover of the Fund is the ratio of the average sum of the acquisitions and disposals of the Fund for
the year to the average value of the Fund for the year calculated on a daily basis, i.e.:
[Total acquisitions of the Fund for the year + Total disposals of the Fund for the year] / 2
Average value of the Fund for the year calculated on a daily basis
Past performance of the Funds is not an indication of its future performance.
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6 Historical Financial Highlights of the Funds
6.1
EXTRACTS OF THE FINANCIAL STATEMENTS OF THE FUNDS
Following are the extracts of the audited financial statements of the Funds for the last three financial years,
immediately preceding the date of the prospectus:
6.1.1
PNB SIF
Extract of Audited Statement of Income and Expenditure For The Financial Year Ended 31 July
2010
RM’000
12 May 2008
(date of launch)
To 31 July 2009
RM’000
129,864
(26,552)
103,312
103,312
109,674
(28,139)
81,535
81,535
2010
RM’000
2009
RM’000
Total Investments
Total Other Assets
Total Assets
Total Liabilities
2,625,303
36,505
2,661,808
(93,671)
2,574,086
783
2,574,869
(81,632)
Unit holders Capital/NAV
2,568,137
2,493,237
Total Investment Income
Total Expenses
Net Income Before Tax
Net Income After Tax
Extract of Audited Statement of Assets and Liabilities as at 31 July
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6.1.2
AMBUTF
Extract of Audited Statement of Comprehensive Income For The Financial Years Ended 30 June
2011
RM’000
2010
RM’000
2009
RM’000
32,467
(2,193)
30,274
29,924
15,579
(1,528)
14,051
13,719
(54,384)
(1,468)
(55,852)
(56,598)
2011
RM’000
2010
RM’000
2009
RM’000
Total Investments
Total Other Assets
Total Assets
Total Liabilities
103,126
17,663
120,789
(652)
130,908
1,520
132,428
(421)
127,969
496
128,465
(305)
EQUITY/NAV
120,137
132,007
128,160
Total Investment Income/(Loss)
Total Expenses
Net Income/(Loss) Before Tax
Net Income/(Loss) After Tax
Extract of Audited Statement of Statement of Financial Position as at 30 June
6.1.3
AMBBTF
Extract of Audited Statement of Income and Expenditure For The Financial Years Ended 30 September
2010
RM’000
2009
RM’000
2008
RM’000
12,114
(1,181)
10,933
10,748
(14,965)
(1,949)
(16,914)
(17,169)
(12,209)
(6,796)
(19,005)
(19,714)
2010
RM’000
2009
RM’000
2008
RM’000
Total Investments
Total Other Assets
Total Assets
Total Liabilities
118,566
2,650
121,216
(1,663)
121,127
2,246
123,373
(329)
128,829
1,947
130,776
(348)
Unit holders Capital/NAV
119,553
123,044
130,428
Total Investment (Loss)/Income
Total Expenses
Net (Loss)/Income Before Tax
Net (Loss)/Income After Tax
Extract of Audited Statement of Assets and Liabilities as at 30 September
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6.1.4
AMBITF
Extract of Audited Statement of Comprehensive Income For The Financial Years Ended 30 June
2011
RM’000
2010
RM’000
2009
RM’000
6,887
(927)
5,960
5,960
5,626
(1,182)
4,444
4,444
2,869
(19,386)
(16,517)
(16,517)
2011
RM’000
2010
RM’000
2009
RM’000
Total Investments
Total Other Assets
Total Assets
Total Liabilities
73,559
2,718
76,277
(218)
83,566
4,506
88,072
(267)
100,242
929
101,171
(150)
EQUITY/NAV
76,059
87,805
101,021
Total Investment Income
Total Expenses
Net Income(Loss)/ Before Tax
Net Income(Loss)/ After Tax
Extract of Audited Statement of Financial Position as at 30 June
6.1.5
AMBILTF
Extract of Audited Statement of Income and Expenditure For The Financial Years Ended 31 October
2010
RM’000
2009
RM’000
2008
RM’000
2,214
(238)
1,976
1,919
1,295
(199)
1,096
1,013
3,968
(264)
3,704
3,504
2010
RM’000
2009
RM’000
2008
RM’000
Total Investments
Total Other Assets
Total Assets
Total Liabilities
17,384
1,145
18,529
(1,852)
17,151
233
17,384
(1,816)
12,796
462
13,258
(78)
Unit holders Capital/NAV
16,677
15,568
13,180
Total Investment Income
Total Expenses
Net Income Before Tax
Net Income After Tax
Extract of Audited Statement of Assets and Liabilities as at 31 October
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6.1.6
AMBSCTF
Extract of Audited Statement of Income and Expenditure For The Financial Years Ended 31 July
2010
RM’000
2009
RM’000
2008
RM’000
17,086
(1,601)
15,485
15,222
(44,598)
(1,384)
(45,982)
(46,295)
(40,783)
(1,954)
(42,737)
(43,225)
2010
RM’000
2009
RM’000
2008
RM’000
Total Investments
Total Other Assets
Total Assets
Total Liabilities
102,023
3,042
105,065
(3,023)
94,623
606
95,229
(1,946)
100,500
1,301
101,851
(186)
Unit holders Capital/NAV
102,042
93,283
101,665
Total Investment Income/(Loss)
Total Expenses
Net Income/(Loss) Before Tax
Net Income/(Loss) After Tax
Extract of Audited Statement of Assets and Liabilities as at 31 July
6.1.7
AMBEBTF
Extract of Audited Statement of Comprehensive Income For The Financial Years Ended 31 March
2011
RM’000
2010
RM’000
2009
RM’000
2,137
(387)
1,750
1,750
477
(304)
173
167
1,197
(341)
856
856
2011
RM’000
2010
RM’000
2009
RM’000
Total Investments
Total Other Assets
Total Assets
Total Liabilities
20,856
705
21,561
(46)
22,563
372
22,935
(198)
25,531
461
25,992
(49)
EQUITY/NAV
21,515
22,737
25,943
Total Investment Income
Total Expenses
Net Income/(Loss) Before Tax
Net Income/(Loss) After Tax
Extract of Audited Statement of Financial Position as at 31 March
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6.1.8
AMBETF
Extract of Audited Statement of Income and Expenditure For The Financial Years Ended 31 August
2010
RM’000
2009
RM’000
2008
RM’000
2,816
(310)
2,506
2,471
1,452
(249)
1,203
1,171
3,328
(379)
2,949
2,832
2010
RM’000
2009
RM’000
2008
RM’000
Total Investments
Total Other Assets
Total Assets
Total Liabilities
18,761
2,991
21,752
(1,575)
15,603
434
16,037
(1,883)
14,063
1,282
15,345
(2,470)
Unit holders Capital/NAV
20,177
14,154
12,875
Total Investment Income
Total Expenses
Net Income Before Tax
Net Income After Tax
Extract of Audited Statement of Assets and Liabilities as at 31 August
6.1.9
AMBLTF Today
Extract of Audited Statement of Income and Expenditure for The Financial Years Ended 30 September
2010
RM’000
2009
RM’000
2008
RM’000
493
(129)
364
360
512
(149)
363
362
840
(228)
612
591
2010
RM’000
2009
RM’000
2008
RM’000
Total Investments
Total Other Assets
Total Assets
Total Liabilities
7,414
119
7,533
(347)
9,987
174
10,161
(360)
12,279
466
12,745
(943)
Unit holders Capital/NAV
7,186
9,801
11,802
Total Investment Income
Total Expenses
Net Income Before Tax
Net Income After Tax
Extract of Audited Statement of Assets and Liabilities as at 30 September
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6.1.10
AMBLTF 2014
Extract of Audited Statement of Income and Expenditure For The Financial Years Ended 30 September
2010
RM’000
2009
RM’000
2008
RM’000
255
(65)
190
187
133
(57)
76
75
(2)
(69)
(71)
(74)
2010
RM’000
2009
RM’000
2008
RM’000
Total Investments
Total Other Assets
Total Assets
Total Liabilities
2,579
31
2,610
(256)
2,780
36
2,816
(619)
2,339
173
2,512
(277)
Unit holders Capital/NAV
2,354
2,197
2,235
Total Investment Income/(Loss)
Total Expenses
Net Income/(Loss) Before Tax
Net Income/(Loss) After Tax
Extract of Audited Statement of Assets and Liabilities as at 30 September
6.1.11
AMBDTF
Extract of Audited Statement of Comprehensive Income For The Financial Years Ended 30 April
2011
RM’000
2010
RM’000
2009
RM’000
3,315
(351)
2,964
2,934
2,484
(305)
2,179
2,157
1,618
(305)
1,313
1,224
2011
RM’000
2010
RM’000
2009
RM’000
Total Investments
Total Other Assets
Total Assets
Total Liabilities
19,058
347
19,405
(4,690)
15,407
303
15,710
(3,465)
14,264
330
14,594
(514)
EQUITY/NAV
14,715
12,245
14,080
Total Investment Income
Total Expenses
Net Income Before Tax
Net Income After Tax
Extract of Audited Statement of Financial Position as at 30 April
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6.1.12
AMBDY
Extract of Statement of Comprehensive Income For the Financial Years Ended 30 April
2011
RM’000
2010
RM’000
2009
RM’000
8,762
(944)
7,818
7,642
6,325
(828)
5,497
5,436
(15,501)
(828)
(16,329)
(16,459)
2011
RM’000
2010
RM’000
2009
RM’000
Total Investments
Total Other Assets
Total Assets
Total Liabilities
53,113
1,545
54,658
(2,389)
50,443
367
50,810
(556)
40,635
5,092
45,727
(125)
EQUITY/NAV
52,269
50,254
45,602
Total Investment Income/(Loss)
Total Expenses
Net Income/(Loss) Before Tax
Net Income/(Loss) After Tax
Extract of Statement of Financial Position as at 30 April
6.1.13
AMBDI
Extract of Statement of Income and Expenditure for the Financial Years Ended 30 November
2010
RM’000
2009
RM’000
2008
RM’000
2,089
(315)
1,774
1,746
(47)
(303)
(350)
(389)
1,403
(362)
1,041
919
2010
RM’000
2009
RM’000
2008
RM’000
Total Investments
Total Other Assets
Total Assets
Total Liabilities
18,755
553
19,308
(132)
20,650
115
20,765
(105)
19,115
142
19,257
(68)
Unit holders Capital/NAV
19,176
20,660
19,189
Total Investment (Loss)/Income
Total Expenses
Net (Loss)/Income Before Tax
Net (Loss)/Income After Tax
Extract of Statement of Assets and Liabilities as at 30 November
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6.1.14
AMBDA
Extract of Statement of Comprehensive Income for the Financial Years Ended 31 May
2011
RM’000
2010
RM’000
2009
RM’000
2,460
(555)
1,905
1,905
3,284
(878)
2,406
2,406
1,555
(81)
1,474
1,474
2011
RM’000
2010
RM’000
2009
RM’000
Total Investments
Total Other Assets
Total Assets
Total Liabilities
23,540
6,288
29,828
(103)
34,861
332
35,193
(197)
46,650
405
47,055
(175)
EQUITY/NAV
29,725
34,996
46,880
Total Investment Income
Total Expenses
Net Income/(Loss) Before Tax
Net Income/(Loss) After Tax
Extract of Statement of Financial Position as at 31 May
6.1.15
AMBDN
As this Fund is newly launched, there are no performance statistics as yet.
6.2
Total Annual Expenses Incurred by the Funds in the last Financial Year
Following are the total annual expenses incurred by the Funds in the preceding financial year:
Fund Name
Management Fee
RM’000
PNBSIF
(31 July 2010)
AMBUTF
(30 June 2011)
AMBBTF
(30 September 2010)
AMBITF
(30 June 2011)
AMBILTF
(31 October 2010)
AMBSCTF
(31 July 2010)
AMBEBTF
(31 March 2011)
AMBETF
(31 August 2010)
AMBLTF Today
(30 September 2010)
AMBLTF 2014
(30 September 2010)
AMBDTF
(30 April 2011)
%*
Trustee Fee
RM’000
%*
Other Expenses
RM’000
%*
Total Annual
Expenses
RM’000
%*
25,681
1.00
800
0.03
71
0.00
26,552
1.03
1,804
1.39
43
0.03
119
0.09
1,966
1.52
1,063
0.88
42
0.03
76
0.06
1,181
0.97
830
1.18
29
0.04
68
0.10
927
1.32
181
1.02
18
0.10
39
0.21
238
1.34
1,485
1.50
69
0.07
47
0.05
1,601
1.62
239
1.08
18
0.08
45
0.20
302
1.37
269
1.50
18
0.10
23
0.13
310
1.73
91
1.06
18
0.22
20
0.23
129
1.51
28
1.15
18
0.74
19
0.78
65
2.67
227
1.50
18
0.12
35
0.24
280
1.86
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Fund Name
Management Fee
Trustee Fee
Other Expenses
Total Annual
Expenses
29
0.06
816
1.64
37
0.19
315
1.61
53
0.16
555
1.73
-
-
-
-
AMBDY
(30 April 2011)
747
1.50
40 0.08
AMBDI
(30 November 2010)
260
1.33
18 0.09
AMBDA
(31 May 2011)
480
1.49
22 0.07
AMBDN*
(30 June 2011)
Note: The percentage is reflected as a percentage of average NAV.
* AMBDN is a newly launched fund.
The audited financial statements of the Fund are disclosed in the Fund’s annual report and are available upon
request.
Past performance of the fund is not an indication of its future performance. The fund’s annual report is
available upon request.
6.3
Management Expense Ratio (MER)
The Management Expense Ratio (MER) of the Funds for the past three (3) financial years is as shown below:Funds
MER (%)
2011
2010
2009
2008
PNBSIF*
AMBUTF
AMBBTF
AMBITF
1.52
1.32
1.03
1.13
0.97
1.23
1.25
0.97
0.98
1.40
1.09
1.01
1.31
AMBILTF
AMBSCTF
AMBEBTF
AMBETF
AMBLTF Today
AMBLTF 2014
1.37
-
1.34
1.62
1.28
1.73
1.51
2.67
1.33
1.63
1.26
1.76
1.33
2.38
1.24
1.61
1.18
1.69
1.28
2.60
AMBDTF
AMBDY
AMBDI
AMBDA**
AMBDN*
1.86
1.64
1.73
-
2.12
1.67
1.61
2.18
-
1.87
1.67
1.47
0.16
-
1.71
1.67
1.49
0.90
-
*PNBSIF and AMBDN have been in existence for less than 3 financial years.
**For AMBDA, during the financial period, the management fee charged to the Fund was based on
Mudharabah profit sharing of 15:85 ratio whenever NAV per unit of the Fund is more than RM0.4950. As such
in 2011, there was management fee charged due to the NAV per Unit above RM0.4950, however in 2010, no
management fee was charged since the NAV per Unit was below RM0.4950.
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The MER provides a measure by which investors can assess and compare the outgoing incurred by a fund.
These expenses are deducted from the income of the fund before it is paid to you.
MER of the Fund is the ratio of the sum of the fees and the recovered expenses of the unit trust fund to the
average value of the fund calculated on a daily basis, i.e.
Fees of the Fund recovered expenses of the Fund
x 100
Average value of the Fund for the year calculated on a daily basis
Where:
Fees
=
All ongoing fees deducted/deductible directly from the Fund in respect of the
period covered by the management expense ratio expressed, as a fixed amount
calculated on a daily basis. This would include the annual management fee, the
annual Trustee fee and any other fees deducted/deductible directly from the
Fund;
Recovered expenses
=
All expenses recovered from/charged to the Fund as a result of the expenses
incurred by the operation of the Fund, expressed as a fixed amount. This should
not include expenses that would otherwise be incurred by an individual investor
(e.g. brokerage, taxes and levies); and
Average value of
= The NAV of the Fund, including Fund’s net income value less expenses on an
accrued the the Fund basis, in respect of the period covered by the MER, calculated on a daily basis.
Past performance of the Fund is not an indication of its future performance. The Fund’s annual report is
available upon request.
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7 Fees, Charges and Expenses
7.1 Charges
7.1.1
Sales Charge
Unit Holders have to pay a sales charge upon purchasing of Units in addition to the investment amount. The
maximum sales charge of the respective Funds is as follows and is negotiable, subject to the discretion of the
Manager.
Funds
PNB SIF
AMBUTF
AMBBTF
AMBITF
AMBILTF
AMBETF
AMBEBTF
AMBSCTF
AMBLTF Today
AMBLTF 2014
AMBDTF
AMBDY
AMBDI
AMBDA
AMBDN
Direct Investment through the Manager
Maximum Sales Charge
(percentage of NAV per Unit)
(%)
1.5
6.5
6.5
2.0
4.0
6.5
2.0
6.5
2.0
6.0
5.5
5.5
5.5
1.0
Nil
Distribution Channel
Maximum Sales Charge
(percentage of NAV per Unit)
(%)
1.5
6.5
6.5
2.0
4.0
6.5
2.0
6.5
2.0
6.0
5.5
5.5
5.5
1.0
Nil
The sales charge for investments under the EPF Members’ Investment Scheme shall not exceed 3% of NAV per
Unit, as regulated by EPF.
Kindly refer to the Manager for the latest list of Funds approved by EPF for investment.
Below is an illustration on how the sales charge is calculated:1. Investment amount in AMBETF RM10,000
2. NAV per Unit
RM0.5000
3. Sales Charge
6.5% of NAV per Unit
Units issued to Unit Holder
= Investment Amount
NAV per Unit
= RM10,000.00
RM0.5000
= 20,000 Units
Sales Charge per Unit
= NAV per Unit x Sales Charge (%)
= RM0.5000 x 6.5%
= RM0.0325
Total Sales Charge
= 20,000 Units x RM0.0325
= RM650.00
Please note that the above example is for illustration purpose only.
Total sales charge is rounded up to the nearest 2 decimal points.
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7.1.2
Repurchase Charge
The Manager does not impose a repurchase charge on the repurchasing of Units by the Unit Holders for all
Funds except for PNB SIF. Units are repurchased by the Manager at NAV per Unit.
For PNB SIF, the repurchase charge incurred will depend on when the Unit Holders request for repurchase of
their Units. The longer the Unit Holder holds the Units, the lower is the repurchase charge. This charge is nonnegotiable. There will be no repurchase charge if the Units are held to the Maturity Date.
Details of the repurchase charge are as follows:2.5% of NAV per Unit in the 1st year from the commencement date (7 July 2008 – 6 July 2009)
2.0% of NAV per Unit in the 2nd year from the commencement date (7 July 2009 – 6 July 2010)
1.5% of NAV per Unit in the 3rd year from the commencement date (7 July 2010 – 6 July 2011)
1.0% of NAV per Unit in the 4th year from the commencement date (7 July 2011 – 6 July 2012)
0.5% of NAV per Unit in the 5th year from the commencement date (7 July 2012 – 4 July 2013)
Nil – On Maturity Date or early termination date (5 July 2013)
The repurchase charge shall be reimbursed to the Fund. This is to cover part of the transaction cost that may
have been incurred in disposing of instruments from the portfolio in order to fulfill repurchase requests. The
total repurchase charge will be rounded to the nearest 2 decimal points.
Below is the illustration on the calculation of the repurchase charge of PNB SIF, assuming the repurchase
request is made in the fourth year from the commencement date:1. Units repurchased
2. Repurchase charge
3. NAV per Unit
20,000 Units
1.0% of NAV per Unit
RM1.0000
Repurchase charge per Unit
= NAV per Unit x repurchase charge (%)
= RM1.0000 x 1.0%
= RM0.0100
Total repurchase charge
= 20,000 units x RM0.0100
= RM200.00
Please note that the above example is for illustration purpose only.
Total repurchase charge is rounded up to the nearest 2 decimal points.
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7.1.3 Switching Charge
This facility enables Unit Holders to switch Units of one Fund to Units of other Funds managed by the
Manager. Units switched are transacted at the Fund’s NAV. The minimum investment that can be switched per
transaction is 1,000 Units.
The conditions for switching are set out below:
To Recipient
Fund
Switching From
Equity
Bond/ Mixed
Asset
Balanced
Money Market
RM25 per
RM25 per transaction RM25 per transaction
transaction
Up to 5% of
Up to 1% of
Bond/ Mixed Asset
RM25 per transaction
amount switched
amount switched
Up to 1% of
Balanced
RM25 per transaction RM25 per transaction
amount switched
Up to 5% of amount Up to 1% of amount Up to 5% of amount
Money Market
switched
switched
switched
Equity
Notes:
Nil
Nil
Nil
Nil
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.
Distribution Units of conventional Funds cannot be switched to Shariah Funds within the AMB family
of Funds. However the principal amount of conventional Funds is allowed to be switched to Shariah
Funds.
7.1.4
Transfer Charge
An administrative fee of RM25 is charged per transaction.
7.1.5
Other Administration Charges
In addition to the charges expressly allowed to be charged directly by the Manager and/or the Trustee, the
Unit Holder may be required to pay a charge as allowed by the Deeds, where applicable in respect of :
a) any document supplied to the Unit Holder at the Unit Holder’s request; or
b) bank charges, courier changes and any other relevant changes incurred for repurchase of Units.
c) any act of administrative nature carried out for the Unit Holder at the Unit Holder’s request.
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7.2
Fees
7.2.1
Management Fee
The Manager is entitled to an annual management fee. The annual management fee is calculated and accrued
on a daily basis before deducting the annual management fee and trustee fee for the day. The annual
management fee shall be rounded to the nearest 2 decimal points. The annual management fee of the
respective Funds is as follows:Funds
Annual Management Fee
(percentage of NAV)
Min (%)
1.00
1.00
0.75
1.00
1.00
1.50
1.00
Max (%)
1.00
1.50
1.50
1.50
1.00
1.50
1.11
AMBETF
AMBLTF Today
1.50
1.00
1.50
1.10
AMBLTF 2014
1.10
1.23
AMBDTF
AMBDY
AMBDI
1.50
1.50
1.10
1.50
1.50
1.35
PNB SIF
AMBUTF
AMBBTF
AMBITF
AMBILTF
AMBSCTF
AMBEBTF
AMBDA
AMBDN
Current year charge
(percentage of NAV)
(%)
1.00
1.50
1.50
1.00
1.00
1.50
Equity Portion: 1.75**
Bond Portion: 1.00**
1.50
Equity Portion: 1.50**
Bond Portion: 1.00**
Equity Portion: 1.50**
Bond Portion: 1.00**
1.50
1.50
Equity Portion: 1.50**
Bond Portion: 1.00**
Profit Sharing Scheme with the investors
of the Fund in the ratio of 15:85 of Net
Investment Income*
0.00
0.50
15:85
0.50
* Net Investment Income is defined as the income of the Fund less trustee fee and all permitted or allowable
expenses under the Deed. If the daily net investment income for any valuation day is zero or negative, or
while the NAV of a Unit is less than the minimum value, the Manager shall not be entitled to any
management fee for that day. Daily net investment income is defined as the diference between the total net
investment income as at the valuation day and the total net investment income as at the previous valuation
day. Minimum value is taken to mean that the Net Asset Value of a Unit shall not be less than RM0.4950. If
there is any decrease in the net asset value as a result of the distribution or sub division of Unit, then the
minimum value shall be adjusted accordingly.
**The flexible annual management fee rate is based on the asset allocation.
The following annual management fee of AMBLTF Today and AMBLTF 2014, before deducting the annual
management fee and trustee fee for the day, calculated and accrued on a daily basis, is charged to the fund.
Funds
AMBLTF Today
Annual Management Fee
(1.00 to 1.10%) of NAV before deducting annual management fee and trustee fee
for the day, calculated on a daily basis.
AMBLTF 2014
(1.10% to 1.23%) of NAV before deducting annual management fee and trustee
fee for the day, calculated on a daily basis.
Bond Portion
1.00% p.a. of the NAV of the fund, before deducting annual management fee and trustee fee for the day,
calculated on a daily basis.
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Equity Portion
1.50% p.a. of the NAV of the fund, before deducting annual management fee and trustee fee for the day,
calculated on a daily basis.
An illustration on how the Annual Management Fee of AMBLTF Today is calculated:
The following tables 1 & 2 illustrate AMBLTF Today’s flexible Annual Management Fee based on assets
invested.
Asset Classes
Annual Management Fee
(Yield)
Money Market and Bonds
1.00%
Equity
1.50%
Table 1
Should AMBLTF Today comprise 20% of shares while the rest are invested into money markets and bonds,
then the Annual Management Fee for the Fund will be:Asset Classes
Money Markets & Bonds
Equity
Annual Management Fee
Annual Management
Fee (Yield)
1.00%
1.50%
% of Asset Allocation
Fees chargeable
80%
20%
0.80%
0.30%
1.10%
Table 2
With this, the Annual Management Fee at AMBLTF Today will range between 1.00% to 1.10% p.a. depending
on the assets chosen by the Fund Manager.
Therefore:
Total assets of the Fund
(less): Total liabilities of the Fund
Daily Management Fee (e.g. 1.10% p.a. )
RM7,000 000
_ RM300,000__
RM6,700 000
= RM 6,700,000 x 1.10% / 365
= RM201.92
7.2.2 Trustee Fee
For AMBUTF and AMBBTF, the Trustee is entitled to the following fees, which are paid out of the Fund:
Size of Fund
First RM20 million
Next RM20 million
Next RM20 million
Next RM20 million
Next RM20 million
Any amount in excess of RM100 million
Rate per annum of the NAV of the Fund (%)
0.06
0.05
0.04
0.03
0.02
0.01
For AMBITF, the Trustee is entitled to a fee at a rate of 0.035% per annum of the NAV of the Fund, (before
deducting annual management fee and Trustee fee for the day) up to a maximum NAV of RM100 million and
thereafter at a rate of 0.01%.
For AMBILTF, AMBETF, PNB SIF, AMBDY, AMBDI and AMBDN, the Trustee is entitled to a fee of 0.08% per
annum of the NAV of the Fund, (before deducting annual management fee and Trustee fee for the day),
subject to a minimum fee of RM18,000 per annum calculated on a daily basis.
For AMBEBTF, AMBSCTF and AMBDA, the Trustee is entitled to a fee at a rate of up to 0.07% per annum of
the NAV of each of the Fund, (before deducting annual management fee and Trustee fee for the day), subject
to a minimum fee of RM18,000 per annum. The Trustee fee is calculated on a daily basis.
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For AMBLTF Today, AMBLTF 2014 and AMBDTF, the Trustee is entitled to a fee, which is calculated on a daily
basis as follows:•
If the Fund is invested locally only, the rate is 0.07% per annum (including local custodian fee) on NAV of
the Fund, before deducting annual management fee and Trustee fee for the day, calculated on a daily
basis, subject to a minimum fee of RM18,000 per annum.
•
If the Fund is invested locally and abroad, the rates are 0.07% per annum on the local NAV of the Fund
(including local custodian fee) and 0.07% per annum on the foreign NAV of the Fund (excluding foreign
custodian fee), before deducting annual management fee and Trustee fee for the day, calculated on a
daily basis, subject to a minimum fee of RM18,000 per annum.
7.2.3
Custodian Fee
Being the custodian of AMBUTF and AMBBTF, the Trustee is entitled to a custodian fee of 0.035% per annum
of the value of the stock and shares portfolio subject to a minimum of RM40,000 and a maximum of
RM120,000 per annum for AMBUTF and a minimum of RM60,000 and a maximum of RM150,000 per annum
for AMBBTF.
7.3
Funds’ Expenses
The management fee and Trustee fee, the auditor’s fees and other relevant professional fees, the costs of
distribution of annual reports, tax vouchers, distribution warrants, cost of modification of Deeds and other
notices to Unit Holders as well as expenses that are directly related and necessary for the administration of the
Funds as set out in the Deed shall be paid out of the Funds. These costs are already factored into any quoted
Unit price.
7.4 Others
7.4.1
Policy On Brokerage Rebates And Soft Commissions
It is the policy of the Manager, the Trustees and their delegates to channel all rebates, if any, received from
brokers/dealers to the Funds.
The Manager and its delegates may retain goods and services (soft commissions) provided by any
brokers/dealers, only if the goods and services are of demonstrable benefit to the Unit Holders of the Fund.
The Manager will ensure that the acceptance of the soft commissions does not affect the dealings by the
provider of the commissions, which are to be executed on a “best execution” basis.
The above soft commissions are in the form of the following: (i) research materials;
(ii) data and quotation services;
(iii) investment-related magazines, journals and other related trade publications; and
(iv) computer applications software.
There are fees and charges involved and investors are advised to consider them before investing in the Funds.
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8 Transaction Information
Making an investment in the Funds is simple. Just complete the application form accompanying this
Prospectus and send it to AMB or any Distribution Channels, following the instructions in the application form,
with the appropriate amount for the Units to be purchased. An investor is recognised as a Unit Holder upon
receipt by the Manager of payment together with the completed application form. The amount paid to the
Manager will be deposited into the trust account maintained by the Trustee no later than 10 days from the
date of receipt of the application of units. The Trustee’s obligation only arises when the investment amount is
deposited into the trust account. The Manager will issue investment confirmation statements to the Unit
Holders within 14 days from receipt of application forms by the Manager.
Withdrawals can also be made in part or entirely at any time by completing the request to repurchase form,
which can be obtained at AMB or any Distribution Channels. Although the Deed allows for a period of 10 days
after receiving the request to redeem for payment of proceeds to Unit Holders, the Manager will try to make
payment within 7 days of receiving the request. The Trustee will pay the repurchase proceeds to the Manager
and their obligation will be discharged thereafter.
When you invest in a Fund you are issued with Units. These Units represent your holding in the Fund. The
number of Units that you will receive is determined by the NAV per Unit of the Fund. In addition to the amount
invested in the purchasing of Units, a sales charge is also imposed for all Funds except for AMBDN. Similarly,
the repurchase of Units is also determined by the NAV per Unit and in the case of PNB SIF, a repurchase charge
is imposed if repurchased before the Maturity Date.
8.1
Valuation of Units
For Funds with no foreign investment, the valuation of Units is based on the NAV of the Fund and is calculated
at the end of the Business Day.
For AMBDTF, the valuation of Units is based on the NAV of the Fund and due to different time zone of the
countries, the NAV of the Fund is calculated after the end of the Business Day and at the close of the
respective exchanges. The daily NAV per Unit of AMBDTF will be published on the next Business Day after the
close of the respective exchanges (2 preceding days).
According to the single pricing policy, the purchase and repurchase prices of Units would be at the NAV per
Unit.
Illustration of computation of the NAV per Unit at each valuation point is illustrated below:Total Assets
Total Liabilities
RM131,414,000.00
RM3,614,000.00
NAV
= Total Assets – Total Liabilities
= RM131,414,000.00 – RM3,614,000.00
= RM127,800,000.00
Units in Circulation
= 255,600,000 Units
NAV per unit
=
NAV____
UIC
= RM127,800,000.00
255,600,000
= RM0.50000000
NAV per Unit, rounded to 4 decimal places
Please note the above example is for illustration purpose only
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= RM0.5000
Master Prospectus 2011/2012
8.2 Pricing of Units
8.2.1 Single Pricing Policy
The Manager adopts the single pricing policy in calculating your investment. Single pricing equates to prices
quoted and transacted on a single price (i.e. NAV per Unit). SC has implemented the Single Pricing Regime
(“SPR”) which was effected on 1 July 2007 to replace the dual pricing model in order to provide greater clarity
on the cost to be incurred by investors for the investment made in the unit trust schemes.
The long established dual pricing method comprises of one price being quoted to purchasing investors and
another price being quoted to selling investors.
Under the SPR, both the Repurchase Price and the Selling Price should be the NAV per Unit of the Fund as at
the next valuation point following the receipt of an application to purchase or request for repurchase of Units
of the Fund by the Manager. The SPR will provide greater transparency to the investors on the charges
imposed by the Manager and each Distribution Channel.
Purchase of Units
Illustration of computation for investment in AMBETF
Assuming:
(i)
(ii)
(iii)
Investment amount : RM10,000.00
NAV per Unit
: RM0.5000
Sales charge
: 6.5% of NAV per Unit
Units issued to Unit Holder
= Investment Amount
NAV per Unit
= RM10,000.00
RM0.5000
= 20,000 units
Total amount of sales charge
incurred
=
=
=
=
Unit issued to Unit Holder x Sales Charge
20,000 Units x (6.5% x RM0.5000)
20,000 Units x RM0.0325
RM650.00
Total amount payable
= Investment amount + total sales charge
= RM10,000.00 + RM650.00
= RM10,650.00
Purchase of Units, rounded to 2 decimal places
= RM10,650.00
Please note the above example is for illustration purpose only.
Repurchase of Units
Repurchase of Units by Unit holders is transacted at the NAV per Unit of the Funds. The Manager does not
impose a repurchase charge on the repurchase of Units of Funds by Unit Holders except for PNB SIF.
There is no restriction on the frequency of repurchase of Units by the Unit Holder.
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Illustration of computation for repurchase of PNB SIF
Assuming:
(i)
(ii)
(iii)
Units repurchased by Unit Holder
: 20,000 units
NAV per Unit
: RM1.0000
Repurchase charge if repurchase is made
in the third year from the Commencement Date. : 1.5% of NAV per Unit
Total number of Units repurchased by Unit Holder
(a)
Repurchase proceeds
= Repurchase Units x NAV per Unit
= 20,000 Units x RM1.0000
= RM20,000.00
(b)
Repurchase charge
= Repurchase charge per Unit x NAV per Unit x Units
Repurchase
= 1.5% x RM1.0000 x 20,000 Units
= RM300.00
(c)
Net repurchase proceeds
= Repurchase proceeds – Repurchase charge
= RM20,000.00 – RM300.00
= RM19,700.00
Repurchase of Units, rounded to 2 decimal points
= RM19,700.00
Please note the above example is for illustration purpose only.
There are fees and charges involved and investors are advised to consider the fees and charges before investing
in the Fund.
8.2.2 Forward Pricing
The price of Units is computed on a Forward Pricing basis. As such, Units of the Fund are repurchased at the
NAV per Unit at the next valuation point after receipt of the repurchase request and acceptance by the
Manager. Consequently, any changes in the underlying assets of the Fund will cause its Unit prices to vary.
8.3
Transactions
Purchase and Repurchase of Units
When you invest in the Fund you are issued with Units. These Units represent your holding in the Fund. The
number of Units that you will receive is based on the initial offer price per Unit of the Fund.
Applications to purchase Units will be processed on the same Business Day if received by 2.30 p.m with cleared
payment. The applicable purchase 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.
Except for AMBDN, the Manager will pay the net repurchase proceeds to the Unit Holder within 10 days from
the receipt of the request to repurchase.
As for AMBDN, if the repurchase applications received before 10.30 a.m., repurchase monies will be paid on
the following business day (T+1). For the repurchase application received after 10.30 a.m., the repurchase
monies will be paid after two business days (T+ 2).
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For AMBDN applications to repurchase Units will be processed on the same Business Day if received by 10.30
a.m. The applicable repurchase price would be based on the NAV per Unit at the end of the Business Day on
which the request to repurchase is received by the Manager. Any request 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.
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 any time not later than 10
days after receipt by the Manager of the request to repurchase or such other period as may be permitted by
the relevant authorities from time to time.
How to Purchase Units of the Fund
Making an investment in the Fund is simple. Just complete the application form accompanying this Prospectus
and send it to AMB or any Distribution Channel, following the instructions in the application form, with the
appropriate amounts for the Units to be purchased. The application form is available at the back of this
Prospectus. An investor is recognised as a Unit Holder upon receipt of payment by the Manager together with
the completed application form. The Manager will issue investment confirmation statements to the Unit
Holders within 14 days from the receipt of application forms by the Manager.
Below are the requirements of Purchasing of Units of the Fund.
8.3.1 Making an Initial Investment
Individual investor (single or joint applicant)
Completed Application Form.
FiMM Pre-investment Form
Photocopy of identity card, birth certificate (if joint applicant is a minor) or passport (if applicant is a
Malaysian resident or foreigner).
Mode of payments- Cash, Cheque/Bank Draft, Direct Debit, Telegraphic Transfer (TT), etc. Payment by
Cheque/Bank Draft/TT must be made in favour of “Amanah Mutual Berhad”; and
All payments must be accompanied by the pay-in slip and completed application form.
Corporate investor
Completed Application Form.
FiMM Pre-investment Form
A copy of the Company’s Memorandum & Articles of Association (M & A), Form 49, certificate of registration,
board resolution approving the investment in the Fund, list of authorized signatories and their specimen
signatures.
Mode of payments - Cheque/Bank Draft, Direct Debit, Telegraphic Transfer (TT), etc. Payment by
Cheque/Bank Draft/TT must be made in favour of “Amanah Mutual Berhad”; and
All payments must be accompanied by the pay-in slip and completed application form.
An investor is recognized as a registered Unit Holder by AMB upon receipt of payment (in AMB account)
together with completed Application Form and other relevant supporting documents. The Manager will then
issue a letter confirming the investment within 14 Days upon receipt of the aforesaid documents provided that
the application monies have cleared.
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Payment for initial investment application direct with AMB
1. Via Cheque, bank draft and money order
Payments can be made using cheque, bank draft, or money order made payable to: "Amanah Mutual
Berhad".
Applicants are to write their name and NRIC number or passport number at the back of the cheque, draft or
money order. Application shall be processed based on the net amount received. Where payment is by
cheque, the cheque must be issued by the investor. Third party cheque payment must be accompanied with a
properly signed letter from the Issuer of the cheque stating the he/she is aware that the cheque is used for
investment in unit trust by the investor duly named.
In the case of bank draft or money order, a copy of the application for the bank draft or money order as
approved by the relevant bank/post office must be submitted with the bank draft or money order.
2. Via Telegraphic Transfer / Bank Transfer / Online Transfer
Applicants may transfer the subscription proceeds directly into AMB's bank account via telegraphic
transfer/bank transfer/online transfer. Please include applicant's name in the transaction description, where
applicable, for reference.
8.3.2 Making an Additional Investment
Individual investor (single or joint applicant)
Completed Additional Application Form.
Mode of payments - Cash, Cheque/Bank Draft, Direct Debit, Telegraphic Transfer (TT), etc. Payment by
Cheque/Bank Draft/TT must be made in favour of “Amanah Mutual Berhad”; and
All payments must be accompanied by the pay-in slip and completed additional Application Form.
Corporate investor
Completed Additional Application Form.
Board resolution approving the investment (if necessary).
Mode of payments - Cheque/Bank Draft, Direct Debit, Telegraphic Transfer (TT), etc. Payment by
Cheque/Bank Draft/TT must be made in favour of “Amanah Mutual Berhad”; and
All payments must be accompanied by the pay-in slip and completed additional Application Form.
The additional investment is recognized by the Manager upon its receipt of payment together with the relevant
supporting document. The Manager will then issue a letter confirming the investment within 14 Days upon
receipt of the aforesaid documents provided that the application monies have cleared.
Payment for additional investment application direct with AMB
Payment for additional investment can be made by the same mode of payment as for initial investment.
Applicants can either mail the application with complete documentation and payment to AMB or come
personally to AMB. If we do not receive complete documents with the payment, we reserve the right to reject
the application. If applicant deposits payment into AMB's bank account and does not notify or provide us with
the complete documents, AMB reserves the right to reject the application and hold such amount until claimed.
Investors are advised not to make payment in cash when purchasing units of a fund through any
institutional agent.
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8.3.3
How to Repurchase Units of the Fund
Repurchase can also be made in part or entirety at any time during the tenure of the Fund after the IOP by
completing the Repurchase form, which can be obtained at AMB or any Distribution Channel.
Below are the requirements for Repurchasing of Units of the Fund:
For individual (single or joint applicant)
Completed Repurchase Form.
For corporate investors
Completed Repurchase Form.
Board resolution (if necessary).
Partial repurchase of Units is permitted provided the applicable minimum holding is maintained for the Funds.
There is no restriction on frequency of repurchase and number of Units a Unit Holder can redeem subject to
the minimum holdings above.
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.
Payment for repurchase of Units of direct Unit Holders of AMB
Cheque
The 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.
AMB may assist to bank in the cheque directly into a Unit Holder's bank account. The Unit Holder shall provide
the bank account details in the application or repurchase forms. Any charges incurred such as charges for
outstation cheque will be borne by the Unit Holders.
Transfer to a bank account
(a) Within the country
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.
(b) Overseas
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.
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8.3.4
Transfer of Units
Units in all Funds are transferable. A Unit Holder may fully or partially transfer his Units in the Funds subject to
the transferor and the transferee having the minimum holding in their respective accounts. Every transfer
form must be accompanied by such evidence as the Manager may require of proof of title of the transferor
and is subject to administration fee of RM25 per transfer.
Below are the requirements of transfer of Units of the Fund:
For individual investor (single or joint applicant)
Completed Transfer Form;
FiMM Pre-investment Form (provided that the transferee is a new investor); and
Photocopy of identity card or passport of transferee.
For corporate investor
A copy each of the transferor’s company’s resolution and certificate of incorporation (certified by
a director or company secretary and list of authorized signatories and specimen signatures. All
documents should be endorsed by Company Secretary); and
FiMM Pre-investment Form (provided that the transferee is a new investor).
A copy of the Company’s Memorandum & Articles of Association (M & A), Form 49, certificate of
registration, board resolution approving the investment in the Fund, list of authorized signatories
and their specimen signatures. (provided that the transferee is a new corporate investor).
A copy of the NRIC of the transferee (if individual).
The Manager will then issue a letter confirming the transaction within 14 Days upon receipt of the aforesaid
documents.
8.3.5
Switching
Switching is effectively a request to withdraw all or a specified part of your investment in one Fund, at NAV
applicable to units in that Fund at the time of the switch, and use the proceeds to buy units in another Fund.
To switch between the AMB Family of Funds you can simply complete a switching form at AMB or any
Distribution Channels.
You may request a specified number of units to be switched from one Fund to another. The minimum amount
you can switch is 1,000 Units. However, distribution Units of conventional Funds cannot be switched to Shariah
Funds within AMB Family of Funds. Only the principal amount of conventional Funds is allowed to be switched
to Shariah Funds.
The Manager reserves the right to reject any switching request :
i)
ii)
That it regards as disruptive to efficient portfolio management; or
if deemed by the Manager to be contrary to the best interest of the Fund.
8.4 Error in Pricing
If there is any incorrect calculation of the NAV per Unit, the Manager will take immediate remedial action to
rectify the error. The Manager’s remedial action will extend to the reimbursement of money to the Unit
Holders if the error is at or above the threshold of 0.5% of the NAV per Unit unless the impact on the individual
Unit Holder’s account is RM10.00 or less in absolute amount, in which case no reimbursement is required.
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8.5 Determination of Prices and Charges
The price of Units is computed on a Forward Pricing basis. Similarly, Units of the Fund are repurchased at the
NAV per Unit at the next valuation point after receipt of the repurchase request and acceptance by the
Manager. Consequently, any changes in the underlying assets of the Fund will cause its Unit prices to vary.
8.6
Minimum Initial Investment
Minimum
Initial
Investment
AMBUTF,
AMBBTF,
AMBITF,
AMBEBTF and
AMBDA
AMBILTF, AMBETF,
AMBSCTF, AMBLTF
Today, AMBLTF
2014, AMBDTF,
AMBDY and AMBDI
RM1,000.
(inclusive of
sales charge).
RM500.
(inclusive of sales
charge).
PNB SIF
AMBDN
Individual
Nonindividual
Individual
Nonindividual
RM10,000
(inclusive of
sales charge)
RM50,000
(inclusive of
sales charge)
RM5,000
RM50,000
Note:
For investment under the EPF Members’ Investment Scheme, the minimum investment is RM 1,000 (inclusive
of sales charge) or the minimum initial investment of the respective Funds, whichever is higher.
8.7 Minimum Additional Investment
Minimum
Additional
Investment
AMBUTF, AMBBTF,
AMBITF AMBILTF,
AMBETF, AMBSCTF,
AMBLTF Today,
AMBLTF 2014,
AMBDTF, AMBDY
and AMBDI
RM100.
(inclusive of sales
charge).
PNB SIF
AMBEBTF
and AMBDA
RM500.
(inclusive of
sales charge).
Individual
NonIndividual
RM1,000
(inclusive of
sales charge)
RM5,000
(inclusive of
sales charge)
AMBDN
Individual
Nonindividual
RM1,000
RM10,000
Note:
For investment under the EPF Members’ Investment Scheme, the minimum investment is RM 1,000 (inclusive
of sales charge) or the minimum additional investment of the respective Funds, whichever is higher.
8.8 Minimum Balance of Investment
Minimum
Holdings to
Maintain
Account
AMBUTF, AMBBTF,
AMBITF, AMBILTF,
AMBETF, AMBEBTF,
AMBSCTF, AMBDY and
AMBDI
The minimum balance of
Units remaining in the
account must always be
100 Units.
AMBLTF Today,
AMBLTF 2014,
AMBDTF, and
AMBDA
The
minimum
balance of Units
remaining in the
account
must
always be 1,000
Units.
PNB SIF
AMBDN
The minimum balance
of Units remaining in
the account must
always be 10,000
Units for both
individual and nonindividual.
The minimum balance
of Units remaining in
the
account
must
always be 1,000 Units
for Individuals and
5,000
Units
for
Corporate Institutions.
Note:
The Manager is allowed to close the Unit Holder’s account, at the Manager’s discretion, should
the balance in Unit Holder’s account fall below the minimum balance requirement.
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8.9 Cooling-Off Right
A Cooling-off Right refers to the right of the Unit Holder to obtain a refund of his investment in the Fund
including the sales charge if he so requests within the Cooling-off Period. A Cooling-off Right is only given to
an investor, other than those listed below, who is investing in any Fund within the AMB Family of Funds for the
first time:
(a) a corporation or institution;
(b) staff of the Manager; and
(c) persons registered to deal in unit trusts of the Manager.
The refund for every Unit held by the investor pursuant to the exercise of the Cooling-off Right shall be the
sum of:
(a) the NAV per Unit on the day the Units were first purchased; and
(b) the sales charge per Unit originally imposed on the day the Units were purchased.
Example:
On 20 August 2011 (within the Cooling-off Period) the investor decides to exercise his Cooling-off Right by
submitting a request for a refund of his investment. The cooling off amount/proceeds due to you is computed
based on the Unit prices and NAV determined at the close of business on 18 August 2011 including the sales
charge.
When a Cooling-off Right is exercised, the money will be refunded to the applicant within 10 days of receipt of
the notice or exercise of Cooling-off Right by the Manager.
The request to exercise your Cooling-off Right must be submitted either to the Manager or Distribution
Channels within 6 Business Days commencing from the date of purchase i.e. the date on which the Manager
receives the application form and the investment amount.
The Cooling-off Right for EPF investments is available subject to the terms and conditions of the EPF.
8.10
Where to Purchase, Repurchase, Transfer and Switch
Units can be purchased, repurchased, transferred and switched during normal banking/business hours at AMB
or any Distribution Channels. Please refer to page 212 for more information on the Distribution Channels.
8.11
Transfer of Units
Units in all Funds are transferable. Every instrument of transfer must be left with the Manager and must be
accompanied by such evidence as the Manager may require proof of the title of the transferor and is subject to
administration fee of RM25 per transaction.
The manager may decline any transfer request which would result in the transferor or the transferee being a
Unit Holder of less than the minimum balance requirement of each Fund.
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9 Understanding Income Distribution
9.1 Income Distribution Policy
Income distribution, if any, is declared at the end of the financial year of the Fund or for any specified period,
as may be determined by the Manager subject to approval from the Trustee.
For AMBILTF and AMBSCTF, it is not the Funds’ main objective to distribute income as the main focus of the
Funds is to secure capital growth in line with the performance of the FBM KLCI. Any distribution will be at the
discretion of the Manager, which if at all possible is incidental to carrying out the investment function in
accordance with the objective and investment strategies of the Funds. The distribution of each Fund will vary
depending on the performance of each Fund and prevailing economic conditions.
It is intended that distributions to you, if any, will be based on the number of Units held by you as at the date
that the income is declared.
9.2 What Comprises Income Distribution?
Income Distribution is made from realised capital gains (net of realised losses) and realised income. Capital
gains are realised when investments are disposed off at a profit. Realised income is income from interest,
profit, accretion of discounts net of amortisation of premium on fixed income securities and dividend income
from share equities as well as distribution equalisation arising from the creation price of Units.
9.3 Mode of Payment for the Income Distribution
Funds
PNB SIF and AMBDTF
Mode of Payment for the Income Distribution
i. Payment by cheque which will be forwarded to your latest address shown in our
register; or
ii.Reinvestment of units which is computed based on the NAV per Unit at the close of
the first Business Day immediately following the distribution date.
AMBUTF, AMBBTF,
AMBITF and AMBEBTF
i. Payment by cheque which will be forwarded to your latest address shown in our
register; or
ii. Reinvestment of units which is computed based on the NAV per Unit at the close of
the last Business Day falling 30 days after the distribution date.
AMBILTF, AMBDY and
AMBDI
Reinvestment of units which is computed based on the NAV per Unit at the close of
the last Business Day falling 30 days after the distribution date.
AMBLTF Today,
AMBLTF 2014,
AMBSCTF, AMBETF,
AMBDA and AMBDN
Reinvestment of units which is computed based on the NAV per Unit at the close of
the first Business Day immediately following the distribution date.
For reinvestment of distribution units, no sales charge will be imposed.
For PNB SIF, AMBUTF, AMBBTF, AMBITF, AMBDTF and AMBEBTF, if you do not nominate the mode of payment
for the income distribution, your income will automatically be reinvested on your behalf based on the above
mode of payment of the respective Funds.
As for EPF Unit Holders, any income distributions paid by the Fund will be considered as EPF savings and must
be automatically reinvested into additional Units of the same Fund. However, upon reaching the age of 55,
investment under EPF Members Investment Scheme will no longer be treated under the EPF Members’
Investment Scheme.
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9.4
Auto-Reinvestment of Distribution Cheques upon Lapse of Six Months Cheque Validity Period
For distribution cheques which are unpresented by you after expiry of the six months cheque validity period
(from the date of the distribution cheque), we shall reinvest the distributions through the purchase of
additional units of the applicable Fund on your behalf. The reinvestment will be executed based on the NAV
per Unit at the end of the said 6 month period or such date as may be determined by us.
The above exercise is only applicable for Unit Holders of AMBUTF, AMBBTF and AMBITF, AMBEBTF who
entered in the respective register on or after 19 September 2000. The above exercise is also applicable for Unit
Holders of PNB SIF and AMBDTF.
9.5 Policy on Unclaimed Monies
Any distribution payable to such Unit Holders remaining unclaimed for such period of time as prescribed by
the Unclaimed Monies Act 1965 after the date for payment shall be paid by the Trustees to the consolidated
trust account in accordance with the provisions of the Unclaimed Monies Act 1965.
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10 Communications with Unit Holders
The Manager is dedicated to providing investors with high quality information services to help investors make
well-informed investment decisions. We focus on individual investors with a lasting commitment to realisation
of their long-term investment goals by providing a value-added contribution to the management of their
personal wealth.
10.1
Customer Information Service
You can seek assistance on any issue relating to the Funds on Business Days by contacting:
• AMB Client Services : 03-2034 0800 from 9.00 am to 6.00 pm
• Distribution Channels from 9.00 am to 4.30 pm
Alternatively, you may also:
• Email at ambcare@pnb.com.my
• Visit AMB’s website at www.ambmutual.com.my
Unit Price
AMB publishes the NAV per Unit of the Funds in at least one national Bahasa Malaysia and one national English
newspaper daily. Unit Holders can also view the NAV per Unit of the Fund at our website. The Manager has
taken necessary procedures to ensure accuracy of information of pricing sent to Bernama and the respective
newspapers. However, the Manager would not be held liable for the errors or omission of the printed
information on the prices of its Funds in the newspapers.
10.2
Regular Reports and Statements on your Investment
There are four main types of information that you will receive about your investment. You should read these
documents carefully.
1.
Transaction Statement
When you make your investment in the Fund you will receive a copy of the application form showing
details of the amount you have invested in the Fund. Subsequently, the Manager will forward an
investment confirmation statement to all Unit Holders to confirm the number of Units that the Unit Holder
has invested within 14 days from the receipt of the application forms by the Manager. In addition, for any
other transaction, the investment statement will be forwarded to the Unit Holder within the stipulated
time.
2.
Interim and Annual Reports
AMB publishes strategies and performance of the Fund twice a year in interim and annual reports and
distributes to Unit Holders such reports within two months from the end of the half-year and financial year
of the Fund respectively. AMB shall submit a copy of the interim report and lodge the annual report with
the SC.
3.
Interim and Annual Investment Statement
The Manager will forward to the unitholder the Interim and Annual Investment Statement showing all
transactions performed and balance of the units within two months from the end of the half year and
financial year of the Fund respectively.
4. Statement of Income Distribution
Unit Holders will receive the income distribution statement detailing the nature of the amount of
distribution by the AMB Family of Funds, if any.
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10.3
Register of Unit Holders
The principal register of Unit Holders will be kept at the business office at 34th Floor, Menara PNB, 201-A,
Jalan Tun Razak, 50400 Kuala Lumpur and will be available for inspection by Unit Holders from 9.00 a.m. to
6.00 p.m., on Business Days.
10.4
Policies Adopted by AMB to Avoid Money Laundering Activities
In complying with the Anti Money laundering and Anti-Terrorism Financing Act 2001, the Board of the
Directors has approved the following policies and procedures to be administered by AMB:
(a) Screening of transactions equal and above the threshold level from time to time in any of the Funds;
(b) Conducting review on the transactions equal and above the threshold level;
(c) Reporting of the “suspicious” transaction to Bank Negara Malaysia by the designated reporting officer.
10.5
Material Contracts
Saved as disclosed below, there are no other material contracts (including contracts not reduced into writing),
not being contracts entered into in the ordinary course of business, which have been entered into that relates
to the Fund within two years preceding the date of this Prospectus:
(a) The Deed dated 26 April 2011, constituting AMBDN, entered into between AMB and ART, for the benefit of
the Unit Holders; and
(b) The Investment Management Agreement in relation to AMBDN setting out the terms and conditions upon
which the EIM has been appointed and has agreed to act as the EIM of AMBDN entered into between
AMB and EIM on 26 April 2011.
(c) The Distribution Agreement (DA) in relation to AMBDN setting out the terms and conditions upon which the
Institutional Unit Trust Agents (IUTAs) have been appointed and have agreed to act as the IUTAs of
AMBDN entered into between AMB and the IUTAs are as follows:
IUTAs
Date of Agreement
i.
Apex Investment Services Berhad
8 February 2011
ii.
Bank Kerjasama Rakyat Malaysia Berhad
29 March 2010
iii.
Amanah Saham Nasional Berhad
22 June 2009
iv.
Malayan Banking Berhad
- Supplemental DA
- Second Supplemental DA
9 May 2008
9 March 2010
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11 The Management and Administration of the Funds
11.1
Corporate Profile of the Manager
Amanah Mutual Berhad (AMB) is a unit trust management company regulated by the SC. AMB is a subsidiary
of ASNB since 2006 and is a member of Permodalan Nasional Berhad Group of Companies. It was incorporated
on 22 March 1990. It has an authorized of RM5 million and a paid up capital of RM5 million. As to date, AMB
has a total Fund size of RM 3.55 billion.
AMB was formerly known as Mayban Unit Trust Berhad.
AMB is in the business of developing and promoting unit trust funds and it objective is to provide investors
with an opportunity to participate in good performing Funds with diversified investments such as equities,
bonds, short-term money market instruments and other capital market instruments. AMB has a 21-year track
record in managing unit trust funds in Malaysia.
At present, AMB manages 17 Funds under six categories of funds, namely Equity Fund (7 funds), Bond Fund (4
funds), Balanced Fund (3 funds), Capital Protected Fund (1 fund), Mixed Asset Fund (1 fund) and Money
Market Fund (Shariah) (1 fund). There are currently 5 External Investment Managers.
Our Staff Strength
AMB has a total strength of 38 experienced personnel in unit trust business, comprising 31 executives and 7
non-executives as to date, and is responsible for the day-to-day management of the Funds in accordance with
the provisions of the respective Deeds. Full details of the Manager’s duties are set out in the respective Deeds,
th
which are available for inspection at our principal office at 34 Floor, Menara PNB, 201-A Jalan Tun Razak,
50400 Kuala Lumpur.
Functions, Duties and Responsibilities of AMB
The general functions, duties and responsibilities of the Manager include, but are not limited to, the following:
1. Carry out and conduct its unit trust business in a proper and diligent manner and manage and administer
the Funds in a proper, diligent and efficient manner in accordance with the Deeds, the Act, the securities
laws, the Guidelines and other applicable Laws at all times and acceptable and efficacious business
practice within the unit trust industry;
2. Observe high standards of integrity and fair dealing in managing the Funds to the best and exclusive
interest of the Unit Holders;
3. Act with due care, skill and diligence in managing the Funds, and effectively employ the resources and
procedures necessary for the proper performance of the Funds;
4.
Not in any manner make any inequitable or illegal profit from its fiduciary position;
5. Ensure that the Deed and the Prospectus are at all times in compliance with the Deeds, the Act, the
securities laws, the Guidelines and other applicable laws at all times;
6. From time to time modify or propose such modifications to the Deeds and/or the Prospectuses as may be
necessary or desirable in the interests of the Unit Holders;
7. Take all necessary steps to ensure that the investments and other assets of that Funds are adequately
protected and properly segregated; and
8.
Unless otherwise specified in writing by the SC, ensure that the Funds have, at all times, an appointed
trustee.
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11.2 Past Performance of The Manager
The following is the summary of the past performance of the Manager based on the audited financial
statements for the past three financial years ended 31 December:
2010
2009
RM’000
RM’000
5,000
5,000
Paid up capital
65,305
61,663
Shareholders' funds
37,685
34,755
Operating revenue
21,751
21,189
Pretax profit
16,288
15,856
Profit after tax
Note : AMB has changed its financial year end from 30 June to 31 December. The financial year
December 2007 covers the period from 1 July 2006 to 31 December 2007.
11.3
2008
RM’000
5,000
55,182
27,344
14,167
10,574
ended 31
Profile of the Board of Directors of the Manager
The Manager
The Manager has an experienced Board of Directors, several of whom have a background in financial markets.
They are responsible for overseeing the activities of the Manager and the establishment of the Funds’ policies.
Board meetings are held formally at least four times in a year and more frequently should circumstances
require.
There are five members on the Board of Directors including two Independent Directors.
Board of Directors
Tun Ahmad Sarji bin Abdul Hamid (Chairman)
(Non-Executive/Non-Independent)
Tun Ahmad Sarji bin Abdul Hamid was appointed as a Director of AMB on 30 November 2006, by virtue of his
position as the Chairman of Permodalan Nasional Berhad (PNB), the holding company of Amanah Saham
Nasional Berhad. Prior to his appointment as the Chairman of PNB, Tun Ahmad Sarji was the Chief Secretary to
the Government from 1990 to 1996. He was the President of the Commonwealth Association for Public
Administration and Management, from 1996 to 1998. He was also the Chairman of the Institute of Islamic
Understanding Malaysia (1992-2009).
He was conferred by the Government the "Tokoh Maal Hijrah" for the Islamic year 1420 (1999) and the
Director of the Year Award by the Malaysian Institute of Directors in 1999. Tun Ahmad Sarji also represents
the PNB Group as Chairman of several other companies.
Tun Ahmad Sarji is a graduate of the University of Malaya, the Harvard University of the United States of
America, and the Institute of Social Studies, The Hague, Netherlands. He was conferred the Honorary Degree
of Doctor of Science (Management) by Universiti Utara Malaysia, Doctor of Business Administration by the
Nottingham-Trent University, the United Kingdom, Doctor of Letters by the Universiti Malaysia Sarawak and
Doctor of Management by the International Islamic University Malaysia.
He was appointed Chairman of the Second National Economic Consultative Council on 4 August 1999.
Tun Ahmad Sarji is a member of the Board of Trustees, Oxford Centre for Islamic Studies and the Asian
Institute of Management, Manila, the Philippines, and joint-Chairman, Malaysia Centre for Commonwealth
Studies, Cambridge, the United Kingdom.
Tan Sri Dato' Sri Hamad Kama Piah bin Che Othman
(Non Executive/Non-Independent)
Tan Sri Dato' Sri Hamad Kama Piah bin Che Othman was appointed as a Director of AMB on
30 November 2006. On 26 February 2002, Tan Sri Dato' Sri Hamad Kama Piah was appointed as the Group
Managing Director/Group Chief Executive of Permodalan Nasional Berhad (PNB), and subsequently renamed
President and Group Chief Executive. Tan Sri Dato' Sri Hamad Kama Piah has been with PNB since 1979. Prior
to his present appointment, Tan Sri Dato’ Sri Hamad Kama Piah held various senior positions at PNB.
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Tan Sri Dato' Sri Hamad Kama Piah is also the Chairman of the Board of Directors of Universiti Malaysia
Kelantan since May 2007 and sits on the Board of Directors of a number of Malaysian companies. A graduate
of Institut Teknologi MARA (presently known as Universiti Teknologi MARA), he also holds a Masters degree
from the University of Swansea, United Kingdom. He is a Senior Fellow of the Financial Services Institute of
Australasia (FINSIA). He also holds the designation of a Certified Financial Planner and a Registered Financial
Planner, and represents the PNB Group as Director in several other companies.
Tan Sri Dato' Dr. Wan Mohd. Zahid bin Mohd. Noordin
(Non-Executive/Independent)
Tan Sri Dato' Dr. Wan Mohd. Zahid bin Mohd. Noordin was appointed as a Director of AMB on 30 November
2006, and as a member of the Investment Committee for all the Funds managed by AMB on 9 February 2007.
Tan Sri Dato' Dr. Wan Mohd. Zahid holds a Bachelor of Arts Degree from the University of Malaya, Master of
Arts Degree from Stanford University, Palo Alto, California and Ph.D. from the University of California,
Berkeley, California. He also attended the Advanced Management Programme at Harvard University Business
School. In 1997, Tan Sri Dato' Dr. Wan Mohd Zahid was conferred the Doctor of Laws "Honoris Causa" by the
University of Lancaster, the United Kingdom.
Tan Sri Dato' Dr. Wan Mohd. Zahid has more than 30 years of experience in the Malaysian education service.
He held the post of Director-General of Education of Malaysia in 1993, and upon his retirement, he was
appointed as advisor with special functions to the Minister of Education. He had served as consultant to the
Institute of Innovation and Technology, Manila, the Philippines, and the UNICEF Research Project on PreSchool Education. He had also served as a Council Member of the International Bureau of Education in Geneva,
Switzerland, and the Islamic Scientific, Education, Social and Cultural Organisation (ISESCO) in Rabat, Morocco.
In September 1999, he was appointed by UNESCO to serve as a consultant to the Ministry of Education, Saudi
Arabia, when the country embarked on an education reform initiative. In 2008 Tan Sri Dato' Dr. Wan Mohd.
Zahid was appointed as Chairman of the Higher Education Academy of the Ministry of Higher Education. In
2011 he was appointed to serve as Chairman of the Education Advisory Council of the Ministry of Education.
Tan Sri Dato' Dr. Wan Mohd. Zahid sits on the Board of Directors of Sime Darby Berhad and SP Setia Berhad.
He had also served as Deputy Chairman of Berger International Singapore and Deputy Chairman of the
International Bank of Malaysia Berhad until the merger of the bank.
Tan Sri Dato' Md Desa bin Pachi
(Non-Executive/Independent)
Tan Sri Dato' Md. Desa bin Pachi was appointed as a Director of AMB on 22 December 2006, and as a member
of the Investment Committee for all the Funds managed by AMB. On 12 July 2010 he was also appointed as a
member of the Risk Management Committee of the Board of Directors of Permodalan Nasional Berhad (PNB).
Tan Sri Dato' Md. Desa was a Chartered Accountant and was admitted as an Associate Member of the Institute
of Chartered Accountants, Australia, in 1962, and a Fellow of the Institute of Chartered Accountants, Australia
in 1974. He studied accountancy in Melbourne, Australia, under a Colombo Plan Scholarship. He joined Shell
Group of Companies in 1962 and served in various capacities in the Finance Administration. From 1970 to
1976, he was in public practice as Chartered Accountant and was a partner of Desa Megat & Co and KPMG
Peat Marwick. He is a Fellow Member of Malaysian Institute of Management.
Subsequently, he was appointed as the first Chief Executive Officer of PNB and served as Chairman/Chief
Executive Officer of Malaysia Mining Corporation Berhad, Executive Chairman of Fleet Group Sdn Bhd,
Chairman/Managing Director of The New Straits Times Press (Malaysia) Berhad and Chairman of Sistem
Televisyen Malaysia Berhad. From 1982 to 2006, he was the Chairman of Bumiputra-Commerce Holdings
Berhad. He also sits on the Board of Directors of several other companies.
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Dato’ Idris bin Kechot
(Non-Executive/Non-Independent)
Dato’ Idris bin Kechot was appointed as a Director of AMB on 30 November 2006. He obtained his Bachelor of
Science Degree in Agribusiness from Universiti Putra Malaysia in 1983. In 1987, Dato’ Idris secured his Master
Degree in Business Administration specialising in Finance from the University of Stirling, United Kingdom. In
2006, he attended an Accelerated Development Programme at London Business School, the United Kingdom.
He started his career in 1983 as an Investment Analyst at the Corporate Research Department of PNB
undertaking industry and sectoral research. In 1988, he joined the Investment Division of PNB, responsible for
the equity investment activities. His vast experience incorporates equity valuation, equity trading and portfolio
management of the proprietary and unit trust portfolios.
He has also undergone extensive training and attachment program locally and overseas, in the area of equity
valuation, portfolio management and general management development. To further strengthen his skills and
knowledge in the area of investment management, Dato’ Idris had obtained qualification as a Certified
Financial Planner. He sits on the Board of Directors of several other companies.
11.3.1
Company Secretary
Puan Adibah Khairiah binti Ismail@Daud
(MIA 13755)
Company Secretary
With effect from 30 November 2006, Puan Adibah Khairiah binti Ismail@Daud was appointed as the Company
Secretary of Amanah Mutual Berhad. She holds Bachelor of Commerce from Australian National University.
She is a Chartered Accountant and is a member of the Malaysian Institute of Accountants since 1999.
Puan Adibah started her career with Messrs. Coopers & Lybrand, Public Accountants, from 1988 to 1994. She
had served Sapura Holdings Sdn Berhad as Audit Manager from 1994 to 1997, and subsequently served Sapura
Industrial Berhad (formerly known as Sapura Motors Berhad) from 1997 to 1999, as Head of Internal Audit.
She had also served Percon Corporation Sdn Berhad as Financial Controller cum Company Secretary in 2002 to
2005. She joined PNB in 2005 and was seconded to Pelangi Berhad, as Chief Financial Officer. Puan Adibah is
presently attached to the Company Secretary's Department of PNB since October 2006. She sits on the Board
of Directors of several companies.
11.3.2
Senior Compliance Officer
Encik Paisol bin Ahmad
Senior Compliance Officer
Encik Paisol bin Ahmad is a registered compliance officer with the SC and the designated Senior Compliance
Officer of AMB. He has been the designated Senior Compliance Officer of funds of AMB which includes five
Shariah funds, i.e. AMB Dana Yakin, AMB Dana Ikhlas, AMB Dana Arif, AMB Dana Aqeel – Capital Protected and
AMB Dana Nabeel. He is a Fellow of the Association of Chartered Certified Accountants, the United Kingdom, a
member of the Malaysian Institute of Accountants and a Fellow of Financial Services Institute of Australasia
(FINSIA). Encik Paisol has more than 15 years of experience in the unit trust industry, having served in various
senior positions within the PNB Group since 1993. Encik Paisol bin Ahmad is a Certified Financial Planner. He
sits in the Board of Directors of several companies.
11.4
Profile of the Key Management Staff of the Manager
Puan Aldilla @ Zilfalila binti Abdul Halim (Sheila Halim)
Chief Executive Officer
Puan Sheila is the Chief Executive Officer of AMB since March 2008. Prior to joining AMB, Puan Sheila assumed
a position as the Executive Director of CMS Asset Management Sdn Bhd, a subsidiary of Cahya Mata Sarawak
Berhad (CMS). Later, she was seconded as the Acting Chief Executive Officer of CMS Trust Management
Berhad. She was overall responsible for developing business strategies, marketing & sales plans and
structuring products for CMS financial-related businesses in fund management and unit trust industry. She
brings with her more than 15 years of marketing and investment management experience which includes
having being an equity portfolio manager of PFM Capital, a subsidiary of PNB and later to having served as
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Director of Fund Management with Towry Law International. She holds a Bachelor of Science Degree in
Mathematics & Statistics from the University of Western Ontario, Canada.
Puan Ahirah Binti Abdul Rahman
Head of Accounts Department
Puan Ahirah binti Abdul Rahman had more than eight years of audit experience with an established audit firm
before joining PNB in 1991. She was in the Finance Department, PNB and was subsequently transferred to the
Accounts Department, ASNB in 2001 and was responsible for the overall accounting functions of the unit trust
Fund. On 1 December 2006, Puan Ahirah joined AMB as a Head of Accounts Department. She holds a Diploma
in Accountancy from Universiti Teknologi MARA (UiTM).
Encik Md. Kudus bin Abdul Manaf
Head of Operations Department
Encik Md Kudus bin Abdul Manaf is the Head, Operations Department. He joined AMB on 1 December 2006.
He has more than 24 years of working experience in PNB in various departments. He holds a Bachelor of
Business and Administration Degree from Ottawa University USA and a Diploma in Business Studies from
UiTM. He is responsible for the overall operations and administration of AMB.
Puan Ross Liza Binti Othman
Head of Product Development & Administration Department
Puan Ross Liza binti Othman has more than 12 years experience in the financial market. Prior to joining AMB in
December 2009, she was attached to the Fixed Income team in the Investment Department of American
International Assurance Berhad for more than eight years where she was involved in various Fixed income
investment operations which included bonds dealing, money market, forex as well as cash management and
funding. She holds an Executive-Masters of Business Administration (Hons) from UiTM, Shah Alam and B.A.
(Hons) Degree in Business Administration (Finance) from Michigan State University, East Lansing,USA. She is
responsible for product development which include new product creation, existing product enhancement as
well as product administration.
Encik Abdul Rani bin Hj Mohd Salleh
Head of Business & Sales Channel Department
Encik Abdul Rani Hj Mohd Salleh has more than 10 years of experience with financial institutions before joining
ASNB in 2001. He was the Head of ASNB Office in Kota Bharu and ASNB Kangar (under Marketing & Investment
Services Department) before joining Customer & Agent Relation Department, ASNB Head Office and was
responsible for the overall ASNB customers’ feedback and special functions. On 1 December 2006, Encik Abdul
Rani joined AMB as the Head of Business & Sales Channel. He holds a Diploma in Banking Studies from UiTM.
Cik Zuwita binti Ibrahim
Head of Direct Client & Marketing Department
Zuwita Ibrahim has over than 10 years experience in the field of Product Development. Prior to joining ASNB in
April 2005, she was with RHB Bank Berhad involved in the developing of retail deposit products of the bank
and marketing plans to support the product sales & marketing strategy. After six years with the bank, she
joined ASNB and was then seconded to AMB in June 2006 handling product development and administration.
As the Head of Direct Client & Marketing of AMB, she is currently responsible for securing and generating new
sales for the company’s business growth. She holds a B.A. (Hons) Degree in Business Administration (Finance)
from DeMonfort University, Leicester, UK. During her tenure in ASNB, she has completed her graduate diploma
in Applied Finance from Kaplan Professional, Australia.
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11.5 The Investment Committee of the Funds managed by the Manager
11.5.1
Roles and Responsibilities of the Investment Committee
The Investment Committee (IC) is primarily responsible for formulating, implementing and monitoring the
investment management strategies of the Funds in accordance with the investment objective set out for the
Funds, the Deed of the Fund, the Guidelines and securities laws, the internal investment restrictions and
policies and acceptable and efficacious investment management practices within the unit trust industry. The IC
is also responsible for the overall performance of the Funds by ensuring that the Funds are managed
professionally. In addition, the IC reviews and approves the portfolio strategies recommended by the External
Investment Manager. The IC meets once a month and more frequently should circumstances require. The
External Investment Manager will report on the activities and performance of the Funds directly to the IC at
monthly intervals for overall reviews.
11.5.2
The Investment Committee of the Funds
Tun Ahmad Sarji bin Abdul Hamid
(as afore-mentioned)
Tan Sri Dato’ Dr. Wan Mohd. Zahid bin Mohd. Noordin
(as afore-mentioned)
Tan Sri Dato’ Md. Desa bin Pachi
(as afore-mentioned)
Dato’ Idris bin Kechot
(as afore-mentioned)
11.6
The Ethical Panel of Advisors
11.6.1
Roles and Responsibilities of the Ethical Panel of Advisors
•
To advise the Manager on all matters relating to the investments, operation (modus operandi) and
marketing of the ethical Fund to ensure proper compliance with the ethical principles and assisting
External Investment Manager in environmental and social screening method.
•
The member of the Ethical Panel of Advisors will meet to discuss on matters or issue of compliance
with the ethical principles pertaining to the above and forward their advice to the Manager.
•
The Ethical Panel of Advisors and the Manager will meet on a formal basis at least once every 3
months to review and advise on the ethical Fund’s compliance with the ethical principles in respect
of the investments, operations and marketing of the ethical Fund. Proper minutes of the meetings
will be taken and circulated to all members representing the Ethical Panel of Advisors and the
Manager (in the aspect of expertise and guidance in all matters relating to the ethical principles).
•
To furnish the Manager with guidelines and an official list of permissible investments approved by
the Ethical Panel of Advisors for the ethical Fund to invest in. The Ethical Panel of Advisors will
advise the Manager periodically on any updates to the list.
•
To prepare a report in the Manager’s annual reports stating in their opinion that the investments,
operations and accounting policies/system of the ethical Fund are in accordance with the ethical
principles.
To be responsible for scrutinising the scheme’s compliance report as provided by the Compliance
Department and transaction report provided or duly approved by the Trustee to ensure that the
Fund’s investments are in line with ethical principles.
•
•
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To reply to questions and queries on matters encountered during the day-to-day business
operations. The Ethical Panel of Advisors will regularly advise the Manager on the conformance of
the investments, operations and marketing aspects of the ethical fund with the ethical principles.
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11.6.2
Profile of Ethical Panel of Advisors
The Ethical Panel of Advisors comprises of Dato’ Seri Dr. Haji Arshad bin Haji Hashim
Dato’ Seri Dr. Haji Arshad bin Haji Hashim was appointed as a member of the Ethical Panel of Advisors of AMB
on 8 May 2009. Dato’ Seri Dr. Haji Arshad holds a Bachelor of Arts (Economics) (Honours) degree from the
University of Malaya, a Diploma in Economics Development from University of Cambridge, a Masters in
Economics from University of Vanderbilt, the United States of America and a Doctor of Philosophy from
Universiti Pertanian Malaysia.
Dato’ Seri Dr. Haji Arshad has served over 30 years in the Malaysian Civil Service starting as the Assistant
Secretary of the Economic Division in the Ministry of Finance and rising to the position of State Financial
Officer of Penang in 1993. Amongst other positions held, was as Director of Bumiputera Participation Division,
Prime Minister's Department, Penang, Director General of Tourism Malaysia and Deputy Secretary General
(Finance and Development) Ministry of Education. He retired in 2005 as the Secretary General, Ministry of
Information, Malaysia.
He currently sits on the Board of Directors of several other companies.
Datuk Ibrahim bin Muhammad
Datuk Ibrahim bin Muhammad was appointed as a member of the Ethical Panel of Advisors of Amanah Mutual
Berhad on 6 August 2010.
Datuk Ibrahim obtained his Bachelor of Science (Agriculture) Universiti Pertanian Malaysian in 1981. He has
attended various International Management Programmes at various universities and institutions, including at
The Asian Institute of Management in Philippines, the University of Washington and the University of Chicago
in the United States of America.
Datuk Ibrahim had served Malayan Banking Berhad (Maybank) in a career that began in 1994 as Branch
manager and culminated in his appointment as Executive Vice-President, Head, National Sales Consumer
Banking in 2010.
A member of the Board of Governors of the Financial Planning Associates of Malaysia, Datuk Ibrahim is also a
member of the Federation of Unit Trust Managers of Malaysia.
Dato’ Noor Farida binti Mohd. Ariffin
Dato’ Noor Farida binti Mohd. Ariffin was appointed as a member of the Ethical Panel of Advisors of AMB on
8 May 2009. Upon completion of her legal studies at the Inns of Court in London, she joined the Judicial and
Legal Service in February 1971.
Dato’ Noor Farida had a long and distinguished career spanning 40 years in the civil service, 20 years of which
was with the Judicial and Legal Service, five years with the Commonwealth Secretariat and 15 years with the
Foreign Ministry. Dato' Noor Farida was seconded by the Government to the Commonwealth Secretariat in
London for 5 years as Director of the Women and Development Programme, Human Resource and
Development Group. In February 1993, upon her return to Malaysia, she was transferred to Wisma Putra to
head the newly established Legal Division of the Ministry.
In September 1996, she was absorbed into the Administrative and Diplomatic Service and was appointed as
the Under-Secretary of the newly formed Territorial and Maritime Division of the Foreign Ministry.
In August 2000, Dato' Noor Farida was appointed as the Malaysian Ambassador to the Netherlands.
She was also concurrently appointed as the Malaysian Co-Agent to the International Court of Justice for the
Pulau Ligitan and Pulau Sipadan Case against Indonesia and the Malaysian Permanent Representative to the
Organisation for the Prohibition of Chemical Weapons, based in The Hague.
Dato' Noor Farida was elected to the Chair of the 8th Conference of States Parties of the Chemical Weapons
Convention in October 2003. Prior to that, at the First Review Conference of the Convention held in April/May
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2003, she was elected to chair the Drafting Group on the Political Declaration. Dato' Noor Farida was again
appointed the Malaysian Co-Agent by the Government when Malaysia and Singapore agreed to submit the
Pulau Batu dispute to the International Court of Justice.
In July 2008 she was appointed the Director-General of the Research, Treaties and International Law
Department of the Ministry of Foreign Affairs and was the Ambassador-At-Large for the High Level Legal
Experts Group on Follow-up to the ASEAN Charter and sits on the Board of Directors of several other
companies. Her current appointment is Special Adviser to the Minister of Foreign Affairs on Maritime Issues.
11.7
The Shariah Committee
11.7.1
Roles and Responsibilities of the Shariah Committee Members
• To ensure that the Funds are managed and administered in accordance with Shariah Principles;
• To provide expertise and guidance in all matters relating to Shariah Principles, including on the Funds’
deeds and prospectuses, their structure and investment processes, and other operational and
administrative matters;
• Where there is any ambiguity or uncertainty as to an investment, instrument, system, procedure and/or
process, to consult the SC;
• To act with due care, skill and diligence in carrying out their duties and responsibilities;
• To scrutinise the Funds’ compliance reports as provided by the compliance officer, and investment
transaction reports provided by, or duly approved by, the Trustee to ensure that the Funds’ investments
are in line with Shariah Principles; and
• To prepare a report to be included in the Funds’ interim and annual reports certifying whether the Funds
have been managed and administered in accordance with Shariah Principles for the respective periods
concerned.
The Shariah Committee meetings are held formally at least once every 3 months and more frequently should
circumstances require.
11.7.2 Shariah Committee Members
The Shariah Committee Members comprise: Dato’ Dr. Abdul Halim bin Ismail
Dato’ Dr. Abdul Halim bin Ismail was appointed as a member of the Shariah Committee of the Shariah funds
managed by AMB on 30 November 2006.
Dato’ Dr. Abdul Halim was the Managing Director of Bank Islam Malaysia Berhad (1983-1994), Chairman of the
Board of Directors of Syarikat Takaful Malaysia Berhad (1984-1994), and the Executive Director Dealing of
BIMB Securities Sdn. Berhad (1994-2010). He holds a Bachelor of Arts (Hons.), Degree in Economics from the
University of Malaya and Doctor of Philosophy (D. Phil.) in Economics from the University of Oxford, the United
Kingdom.
Dato’ Dr. Abdul Halim sits on the Board of Directors of several companies.
Datuk Dr. Syed Othman bin Syed Hussin Alhabshi
Datuk Dr. Syed Othman bin Syed Hussin Alhabshi was appointed as a member of the Shariah Committee of the
Shariah funds managed by AMB on 30 November 2006. He holds a Bachelor of Economics Degree in Statistics
from University of Malaya, Master of Science in Statistics from University of Wisconsin, the United States of
America and Ph.D in Econometrics from University of Birmingham, the United Kingdom.
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Datuk Dr. Syed Othman has more than 30 years experience in the Malaysian education service. He was
Professor, Dean of Graduate School and Acting Dean of Matriculation Centre of International Islamic University
Malaysia and Deputy Vice-Chancellor (Academic) of Universiti Utara Malaysia. He also held the post of Deputy
Director-General of Institute of Islamic Understanding Malaysia (IKIM) and had also previously served as the
founding President and Chief Executive Officer of University Tun Abdul Razak. He is currently The Chief
Academic Officer of the International Centre for Education in Islamic Finance (INCEIF), a university dedicated to
Islamic Finance.
He is currently a member of the Board of Directors of Etiqa Takaful Berhad; Pak-Kuwait Takaful Pte Ltd
Pakistan; Maybank Islamic Berhad; Prima Prai Sdn Bhd.; Epen Bina Sdn Bhd.; Universiti Teknikal MARA and
Institut Kefahaman Islam Malaysia (IKIM). He now sits on Shariah Advisory Committee for Labuan Reinsurance
(L) Ltd., MIDF Amanah Asset Management Berhad and Singapore Unit Trusts Ltd. (SUT). He is also a Shariah
advisor for Nomura Asset Management, a member of the Board of Trustees for Yayasan Bank Rakyat and a
Certified Shariah Individual by the Securities Commission of Malaysia.
Prof. Dato’ Dr. Abdul Monir bin Yaacob
Prof. Dato’ Dr. Abdul Monir bin Yaacob was appointed as a member of the Shariah Committee of the Shariah
funds managed by AMB on 30 November 2006.
Prof. Dato’ Dr. Abdul Monir obtained first Degree “al-Aliyah” from Al-Azhar University and a Diploma in Law
and later a Master of Philosophy (Law) from University of London. He later completed his Ph.D at the
International Islamic University of Malaysia in 1991. Prof. Dato’ Dr. Abdul Monir has more than 10 years
experience as a lecturer and held the post of Associate Professor, Faculty of Law, Universiti Kebangsaan
Malaysia. He was appointed as Assistant Director General of Institut Kefahaman Islam Malaysia (IKIM) in
November 1997 and was later made Director General of IKIM from April 2002 to March 2005. He was
appointed as Professor at the Department of Syariah and Law, Academy of Islamic Studies, the University of
Malaya from January 2006 to May 2007 and as the Academic Advisor to Sultan Sharif Ali Islamic University,
Brunei Darussalam from May 2007 to May 2009.
His present position was a Senior Research Fellow at the Department of Syariah and Law, Academy of Islamic
Studies, the University of Malaya.
Prof. Dato’ Dr. Abdul Monir is also a member of Shariah Committee of Singapore Unit Trust Limited.
Prof. Dato’ Dr. Mahmood Zuhdi bin Hj Ab. Majid
Prof. Dato’ Dr. Mahmood Zuhdi bin Hj Ab. Majid was appointed as a member of the Shariah Committee of the
Shariah funds managed by AMB on 30 November 2006.
Prof. Dato’ Dr. Mahmood Zuhdi holds a Bachelor Degree in Shariah from Yayasan Pengajian Tinggi Islam
Kelantan, and later obtained a Masters in Shariah from University Al-Azhar, Cairo, as well as a Masters in
Philosophy from University of Kent. He went on to complete his Ph.D at the University of Malaya. He was the
Dean of the Faculty of Syariah as well as Director of Academy of Islamic Studies, University Malaya. He is
currently a Professor at the Department of Fiqh and Usul Fiqh, Kuliyyah of Islamic Revealed Knowledge and
Human Sciences, International Islamic University Malaysia.
Prof. Dato’ Dr. Mahmood Zuhdi also sits on various advisory boards. He is the Chairman of the Shariah
Committee of Public Bank Berhad and Shariah advisor of As-Salihin Trustee. He is also the author of more than
20 Islamic publications.
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11.8
The External Investment Managers
11.8.1
Roles and Responsibilities of the External Investment Managers
Some of the main duties of the External Investment Managers are as follows: 
To comply with the operation procedures and invest the Funds in accordance with the Guidelines.

To exercise due diligence and vigilance in carrying out its function and duties under the Investment
Management Agreement and comply with the Act, directives and guidelines issued by the relevant
authorities from time to time.

To conduct market, technical and economic research to identify suitable investments and to facilitate
optimal asset allocations for the Funds.

To endeavour to use its professional discretion to reallocate assets at the most appropriate times with
the aim to optimising returns for the Unit Holders of the Funds.

To seek to invest in the most suitable assets within each class of assets.

To submit recommendation to the Investment Committee for review and approval of portfolio
strategies, at the Investment Committee meeting to be held monthly.
11.8.2
Permodalan Nasional Berhad
Permodalan Nasional Berhad (PNB) has been entrusted by AMB to manage the investments of PNB SIF and
AMBDN. Established in 1978 as one of the vehicles of the New Economic Policy, PNB has had considerable
success in promoting share ownership of the Bumiputera in the corporate sector through its unit trust funds.
With more than 30 years of experience in fund management, PNB has a proven track record whereby returns
from its unit trust funds have benefited Malaysians from all walks of life from the age of six months and above.
As at LPD, PNB has staff strength of 661 persons and managed total funds of RM195.24 billion. AMB assesses
the performance of PNB as the EIM of PNB SIF and AMBDN based on the investment mandate, objectives and
other functions as stipulated in the Investment Management Agreement signed between AMB and PNB, taking
into consideration the relevant market and industry benchmarks.
Profile of the Key Management Staff of PNB
Tan Sri Dato’ Seri Hamad Kama Piah bin Che Othman
President and Group Chief Executive
(as afore-mentioned)
Puan Adibah Khairiah binti Ismail @ Daud (MIA 13755)
Company Secretary
(as afore-mentioned)
Datin Paduka Jam’iah binti Abdul Hamid
Deputy President, Corporate & International
Datin Paduka Jam’iah binti Abdul Hamid started her career in 1982 as the first batch of management trainee
with Permodalan Nasional Berhad (PNB). In her 29 years in the organization, Datin Paduka Jam’iah has
accumulated extensive experience and expertise through the various positions held in the areas of investment
operations, corporate finance, research, portfolio management and corporate communication and human
resource and international fund. She received her tertiary education abroad (University of Northern Illinois,
B.Sc (Finance) and locally (UKM, MBA). Currently, she is a director of several of PNB investee companies and
also a holder of Capital Market Services Representative’s Licence and is a Certified Financial Planner. Today,
Datin Paduka Jam’iah is the Deputy President, Corporate and International of PNB.
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INVESTMENT DIVISION OF PNB
The Investment Division of PNB’s main responsibility is in managing PNB SIF, AMBDN and other unit trust funds
under Amanah Saham Nasional Berhad. Its investment process incorporates fundamental, research-driven and
team-based investment decisions which are guided by the investment committee of the abovementioned unit
trust funds. The portfolio management team formulates and recommends the investment strategies of the
funds in accordance with the investment mandates based on optimal asset allocation strategies and
diversification. These strategies are executed by the equity and fixed-income dealing teams. The division is
well supported by a team of analysts that performs the securities evaluation process which incorporates
economic, industry, sector, financial and credit analysis. As at LPD, the Investment Division has a staff strength
of 65 persons. The investment professionals are segregated into a team of 19 professionals in the portfolio
management team, 8 professionals in the equities trading team, 5 professionals in the fixed-income
investment team, 24 analysts in the investment evaluation team and 8 are support staff. These professionals
continually strive to meet the expectation of unitholders of funds under PNB’s management in carrying out
their duties. The Investment Division of PNB and its related areas have been awarded MS ISO 9001-2000
certification for its investment process.
Profile of Key Management Staff of the Investment Division of PNB
Encik Wan Roshdi bin Wan Musa
Chief Investment Officer
Encik Wan Roshdi bin Wan Musa, the designated Fund Manager for the investment management of PNB SIF
and AMBDN. Encik Wan Roshdi bin Wan Musa, is presently the Head of Investment Division of PNB. He holds a
Masters Degree in Business Administration, a Bachelor of Science in Finance from Northern Illinois University,
United States of America and a Diploma in Accountancy from MARA Institute of Technology. Encik Wan Roshdi
is a holder of Capital Market Services Representative Licence and also a qualified Certified Financial Planner
(CFP). He started his career in 1985 at the Corporate Finance and Corporate Services Department of PNB, rising
to a position of Head of Department. In 2003, Encik Wan Roshdi was transferred to the Investment Division of
PNB to assist the Senior Vice-President in supervising the investment evaluations, market operations and
portfolio management of the proprietary and unit trust funds before being promoted to the current position
as Chief Investment Officer in 2010. He also sits on the Board of Directors of several companies.
Encik Abdul Rahim bin Ahmad
Vice-President I, Portfolio Management Department
Encik Abdul Rahim bin Ahmad, Vice-President I, is presently the Head of Portfolio Management Department of
Investment Division of PNB. He holds a Bachelor Degree in Statistics from Universiti Kebangsaan Malaysia and
a Graduate Diploma in Applied Finance and Investment from Financial Services Institute of Australasia. Encik
Abdul Rahim is also a fellow member of Financial Services Institute of Australasia and a qualified Certified
Financial Planner (CFP). He started his career at PNB in 1991 as an Investment Analyst in the Investment
Operations Department. Presently, he is responsible for the overall operations of Portfolio Management
Department and supervises the daily fund management of PNB’s proprietary fund and all its unit trust funds
under its management. Encik Abdul Rahim is also a holder of Capital Market Services Representative License.
11.8.3
Mayban Investment Management Sdn Berhad (MIM)
MIM is a holder of Capital Markets Service License under the Capital Markets and Services Act 2007.
MIM is a member of Maybank Group, Malaysia’s largest financial services group by asset size. MIM was
established on 5 March 1997 following the corporatization of the Investment Department of Maybank
Investment Bank (formerly known as Aseambankers). Maybank Investment Bank, which was incorporated
earlier on 28 September 1973, is the investment banking arm of Maybank Group. Presently, MIM is whollyowned by Mayban Ageas Holdings Berhad (“MAHB” or formerly known as Mayban Fortis Holdings Berhad), the
insurance arm of the Maybank Group. MAHB is 69%-owned by Etiqa International Holdings Berhad and 31%owned by Ageas Insurance International NV.
MIM has over 30 years experience including that prior to its corporatization at Maybank Investment Bank in
managing investments ranging from equity, fixed income and money market instruments mainly on behalf of
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corporations, institutions, insurance companies, unit trust funds, individuals and wholesale funds. It has an
authorized paid-up capital of RM5 million. As at 30 June 2011, MIM’s total assets under management was
approximately RM23.79 billion. MIM’s shareholders’ funds and profit before tax as at 30 June 2011 of
RM39.69 million and RM18.47 million respectively.
MIM presently has staff strength of 85 personnel. The profiles of MIM’s key management staff are set out as
follows:
Managing Director/Chief Executive Officer
Encik Nor’Azamin bin Salleh joined MIM on 1 October 2010 and officially appointed as MIM’s Managing
Director / Chief Executive Officer. Azamin 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 MIM, he was the Executive
Director / Chief Executive Officer of AIIMAN. Azamin holds a degree in Bachelors of Commerce and Master in
Business Administration. In addition, he is a Chartered Accountant (Malaysia), Certified Practicing Accountant
(Australia) and Certified Financial Planner. He holds a Capital Markets Service Representative License.
Chief Investment Officer
Mr. Lee Yuen Kuen joined MIM in October 2010. He started his career in the investment field back in 1994 and
was a Vice President - Research at G.K. Goh Research, Kuala Lumpur before joining Maybank Group in March
2005. He was attached to CIMB Principal Berhad from June 2010 for brief prior to his return to MIM Lee is a
qualified Chartered Financial Analyst (CFA). He received his Bachelor of Business Administration degree with
double majors in Actuarial Science & Finance from University of Wisconsin – Madison. He holds a Capital
Markets Service Representative License.
Chief Investment Strategist
Encik Badrul Hisyam Abu Bakar joined MIM on 1 October 2010. He brings with him over 14 years of
experience in fund management industry. He has worked in leading asset management companies amongst
others HLG Asset Managers Sdn Bhd, Commerce Asset Fund Managers, Avenue Asset Management Sdn Bhd,
BIMB Investment Management Berhad (“BIMB IM”) and Tune Money Capital Sdn Bhd. Prior to joining MIM, he
was the Chief Investment Officer of BIMB IM. He received his Bachelor of Science (Cum Laude) degree with
double majors in Finance and Economics from New York University. He holds a Capital Markets Service
Representative License.
Chief Commercial Officer
Encik Ahmad Rizlan Azman joined MIM in November 2007. He has over 6 years experience in financial services
covering corporate strategy, corporate advisory, corporate debt and relationship management. Prior to joining
MIM, he served as Head, Corporate Strategy & Communication at Affin Investment Bank and prior to that as
Vice President, Financial Institutions Relationship Management Group at Deutsche Bank. He graduated with BA
(Hons) Accounting and Finance from Middlesex University, UK. He holds a Capital Markets Service
Representative License.
Chief Product Development & Strategy
Encik Azmeen Adnan joined MIM in August 2008 and assumed his current responsibility on the 1 July 2011.
Previously, he was the Head of Portfolio Management, Fixed Income at MIM. He received his BSc in Business
Administration in 1995 from the University of Denver, Colorado, USA. He served KAF Investment Bank for
more than 7 years from 1996 and left as Senior Manager in Treasury Department before joining PM Securities
in 2003. He then joined RHB Investment Bank in 2005 as an Assistant Vice President, Treasury Department.
Prior to joining MIM on 18 August 2008, he was attached to Kenanga Investment Bank as Vice President,
Treasury Department since September 2006. He is a holder of the Capital Market & Services Representative
license. He holds a Capital Markets Service Representative License.
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Head, Operations
Mr. Bernard Eng Ooi Kee assumed his current position in October 1998. As Head of Operations, he is
responsible for the fund accounting & settlement, fund performance measurement, risk management and
methods & systems. He has been with the Kumpulan Maybank since March 1980 except for a period between
June 1993 and April 1996 when he was with Hong Leong Assurance Bhd as a Credit Controller. At Kumpulan
Maybank, he has served Maybank Investment Bank (formerly known as Aseambankers) in accounting, financial
reporting, loan administration and securities administration. Mr. Eng received his Associate of International
Accounting (UK) in 1994.
Head, Compliance
Puan Wan Maizuni Wan Mohamad joined MIM in January 2005. She has more than 3 years experience as
compliance officer with two asset management companies – RHB Asset Management Sdn Bhd and Amanah
Raya Asset Management Sdn Bhd. Prior to that she served as an Organization & Methods Executive at UMBC
Securities Sdn Bhd. Puan Wan Maizuni graduated with LLB (Hons) degree from University of East London, UK.
She also holds a Diploma in Accountancy from MARA Institute of Technology, Malaysia. She is a registered
Compliance Officer with the Securities Commission.
11.8.4
UOB-OSK Asset Management Sdn Bhd
UOB-OSK Asset Management Sdn Bhd (UOB-OSKAM) is one of the appointed external fund managers of AMB.
UOB-OSKAM, a licensed fund manager since January 1997, is one of the foreign fund management companies
in Malaysia, which offers investment management expertise to unit trust funds as well as institutions,
corporations and individuals through customized portfolio management services.
Established in June 1991, UOB-OSKAM is a 70% subsidiary of UOB Asset Management Ltd. (UOBAM), one of
the largest unit trust managers in Singapore in terms of assets under management. The 30% joint venture
partner of UOB-OSKAM is OSK Investment Bank Berhad, which is licensed to engage in stockbroking, futures
and options broking, corporate advisory, debt securities, interbank market activities, corporate loans,
wholesale deposit and other related activities.
UOB-OSKAM commenced operations in Kuala Lumpur in March 1997 and it has the support and resource
backing of an experienced team of investment professionals at its holding company, who have specialized skills
in portfolio investments in both the Asian and global markets. The funds under management as at LPD is
RM1.45 billion. Its investment team has an average of 16 years’ experience in the fund management industry.
As at LPD, the company has total staff strength of 20, comprising 11 portfolio managers and analysts, and 9
personnel in research support, marketing, operations, administration.
The qualifications and experience of UOB-OSKAM’s key management staff are set out as follows:
Mr. Thio Boon Kiat, is a Director of UOB-OSKAM. He is also an Executive Director & Chief Investment Officer of
UOB Asset Management Ltd. (UOBAM), Singapore, a fund management company with total funds under
management of around SGD14.90 billion as at 30 June 2010. He is a CFA charterholder, and graduated with a
st
Bachelor of Business Administration (1 Class Hons) from the National University of Singapore. Mr. Thio joined
UOBAM in 1994 as a portfolio manager, managing Singapore and subsequently Asia Pacific and global equity
portfolios. He also headed the international equities and global technology teams. He has over 15 years of
investment management experience and previously worked in the Government of Singapore Investment
Corporation.
Ms Lim Suet Ling is the Executive Director of UOB-OSKAM. Prior to her appointment, she was an Associate
Director of UOB Asset Management. She holds a Bachelor of Business Administration (Hons) degree from the
National University of Singapore and is also a CFA charterholder. She has 19 years of experience in the industry
and has had numerous equity portfolios under her management. Her mandates have been wide-ranging,
covering both local and international ones, as well as various investment styles and focus. She has particular
expertise in Malaysian and Asia ex-Japan equities and has been the portfolio manager of several awardwinning funds. Ms Lim has been highly instrumental in the growth and development of UOB-OSKAM since the
incorporation of the company.
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11.8.5 HwangDBS Investment Management Berhad
HwangDBS Investment Management Berhad (“HwangDBS IM”) was incorporated in Malaysia on 2 May 1997
under the Companies Act, 1965 and began operations under the name Hwang-DBS Unit Trust (HDBSUT)
Berhad in 2001. It is supported by one of Malaysia’s leading integrated financial services group, Hwang-DBS
(M) Berhad (HDBS) whose principal subsidiary, HwangDBS Investment Bank Berhad has over 35 years of
experience in the securities industry, and DBS Asset Management Ltd. (DBSAM), an award winning fund
management company with more than 24 years investment management experience.
HwangDBS IM is a holder of a valid and existing Capital Markets and Services Licence under the CMSA 2007
and has an authorised paid up capital of RM10 million. Shareholders of HwangDBS IM are HDBS (53%), DBSAM
(30%) and Y.A.M. Tunku Dato’ Seri Nadzaruddin Ibni Almarhum Tuanku Ja’afar (17%). HwangDBS IM
distributes its funds through their Institutional Business (IB) and Unit Trust Consultant Business (UTCB) team
and via Institutional Unit Trust Advisers (IUTA) and the IUTA’s own internal consultants.
HwangDBS IM’s head office is located in Kuala Lumpur and has a total of 14 main sales offices located in
Peninsular and East Malaysia. They are in Penang, Bukit Mertajam, Sungai Petani, Taiping, Ipoh, Shah Alam,
Taman Tun Dr Ismail, Cheras, Subang Jaya, Seremban, Johor Bharu, Kuching and Kota Kinabalu.
To facilitate its on-going commitment to service and operational excellence, HDBSUT completed the
acquisition of the business of its sister company, Hwang-DBS Asset Management (Malaysia) Sdn. Bhd.
(HDBSAM) on 1 June 2005. The acquisition encompassed the complete transfer of the business under
HDBSAM, the fund management team and all business processes, to HDBSUT. By leveraging the strengths,
skills and expertise of both HDBSUT and HDBSAM, the consolidated entity will be able to manage both retail
and corporate funds. The entity was then renamed as HwangDBS IM to reflect the underlying business nature.
Milestones
As at LPD, HwangDBS IM has in its stable a total of 37 unit trust funds, offering a complete and essential range
of products, comprising conventional equity, balanced, bond, money market, capital guaranteed, capital
protected, global, structured and feeder funds, as well as Islamic equity, Islamic money market and Islamic
balanced funds.
Since 2001, HwangDBS IM has achieved an exponential growth in its total assets under management (AUM).
As at LPD, the total AUM, comprising in-house unit trust funds as well as corporate and discretionary
portfolios stood at approximately RM11.53 billion.
As at LPD, HwangDBS IM has a staff force of 131, of whom, 115 are executive staff and 16 are non-executive
staff.
The qualifications and experience of HwangDBS IM’s key management staff are set out as follows:Mr. Teng Chee Wai – Chief Executive Officer / Executive Director
In his capacity as Chief Executive Officer and Executive Director of HwangDBS Investment Management, Teng
Chee Wai is responsible for managing the overall business and strategic direction of the company as well as
the management of the investment team. He is actively involved in investments and provides critical
leadership through regular participation in reviewing and assessing investment strategies and performance.
His investment management experience spans more than 20 years, and his key area of expertise has been in
managing absolute return mandates for insurance assets and investment-linked funds both in Singapore and
Malaysia. He began his career in the financial industry as Investment Manager, Investment Department,
NTUC Income, Singapore. He was responsible in managing the Life Fund’s equity investment in Malaysia. This
involves making major market call to assist the asset allocation process and also picking in structuring the
portfolio. The total fund size of the Malaysia equity portfolio then was about SGD150 million. During this
period, he also managed the 3 investment-linked funds and some third-party funds totaling about SGD80
million. The mandate was generally a balanced portfolio with equity investments predominantly in Singapore
and Malaysia.
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Prior to his current appointments, he was the Assistant General Manager (Investment) of Overseas
Assurance Corporation (OAC). He was responsible for the investment function for the Group Overseas
Assurance Corporation Ltd. The total fund size that he managed is SGD2.5 million whereby SGD0.5 million of
which are held as strategic investment. Moreover, the actively managed equity portfolio that he managed
had out-performed the KLCI consistently from October 1996 to June 2000. Also, he continuously reviewed
and formulated the investment process for OAC and recommendation for the Investment Committee’s
approval. He graduated with a Bachelor of Science from the National University of Singapore and has a PostGraduate Diploma in Actuarial Studies from City University in London.
Mr. David Ng Kong Cheong – Chief Investment Officer
David is the Chief Investment Officer of HwangDBS Investment Management Berhad and oversees the
equities, fixed income and the central dealing departments. He brings with him more than 14 years experience
in managing both institutional and unit trust funds. As Chief Investment Officer, he will be responsible for
setting the investment strategy for the assets under management.
Prior to joining HwangDBS IM, he spent five years at HLG Asset Management Sdn. Bhd. managing both unit
trust and institutional funds. He graduated with a double degree in Bachelor of Commerce (Accounting) and
Bachelor of Law from Monash University in Melbourne, Australia and is also a Chartered Financial Analyst
(CFA) charterholder.
Ms. Peggy Liew Li Choo – Chief Operating Officer
Peggy Liew was promoted to the role of Chief Operating Officer of HwangDBS Investment Management
Berhad (HwangDBS IM) in August 2010. Her responsibilities encompass the overall planning, execution and
administration of the company’s business, operational and fiscal objectives in major functions relating to,
Finance, Operations, Information Technology, Office Management and Corporate Affairs.
She brings with her more than 20 years of work experience in various industries, of which 15 years of her
professional experience are in the capital market industry. Prior to joining HwangDBS IM as Head of
Operations in July 2008, she spent seven years in Prudential Fund Management Berhad as the Head of
Operations and six years in HLB Unit Trust Management where she oversaw fund valuations, sales and office
administration as well as the operational activities within the company.
She holds certifications from the Association of Chartered Certified Accountant (ACCA) and Chartered Institute
of Marketing (CIM).
Ms. Esther Thye Yee Meng – Chief Sales Officer
Esther Thye was appointed as the Chief Sales Officer on 1 September 2006 and has been with the Manager
since January 2005, previously as the Head of Institutional Business. She brings over 15 years of sales and
marketing experience primarily in the financial services industry. She is responsible for securing business from
private and institutional clients as well as developing portfolio management solutions for this niche market.
Esther is an Associate Financial Practitioner (AFP) who holds an advanced Diploma from the Chartered Institute
of Marketing (CIM).
Mr. Steve Lim Lip Hoong– Chief Product Officer
Steve Lim was appointed Chief Product Officer of HwangDBS Investment Management Berhad (“HwangDBS
IM” or “the Company”) on 1 June 2010. He covers the strategic management as well as structuring, developing
and positioning of all HwangDBS IM products in their respective client segments. He brings with him 20 years
experience in portfolio management, marketing and product development for the fund management, stockbroking, onshore and offshore private banking industries.
Prior to joining HwangDBS IM, he was attached to offshore global private banks in Singapore. His offshore
experience includes marketing of wealth management services and formulating investment strategies for the
high networth individual market segment. Before moving offshore, he also covered various aspects of the
capital market as fund manager, institutional sales and product director in several renowned financial groups
in Malaysia.
He graduated from the University of Hawaii with double major in Finance and Accounting, and is a Chartered
Financial Analyst (CFA) charter holder.
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11.8.6
CIMB-Principal Asset Management Berhad (CIMB-Principal)
CIMB-Principal holds a Capital Markets Services License for fund management and dealing with unit trust
products under the CMSA and specialises in managing and operating unit trusts for investors, both institutional
and retail. CIMB-Principal’s responsibilities include managing investment portfolios by providing fund
management services to insurance companies, pension funds, unit trust companies, corporations and
government institutions in Malaysia.
CIMB-Principal is a participating unit trust management company under the Malaysia Employees Provident
Fund (EPF) Members’ Investment Scheme and is responsible for managing more than RM25.35 billion on
behalf of individuals and corporations in Malaysia. It originally commenced its operations as a unit trust
company in November 1995. As at LPD, CIMB-Principal has more than 15 years of experience in the unit trust
industry.
As at LPD, the shareholders of the company are CIMB Group Sdn. Bhd. (“CIMB Group”) (60%) and Principal
International (Asia) Limited (“PIA”) (40%). CIMB Group is held in majority by CIMB Group Holdings Berhad. It is
a fully integrated investment bank. It offers the full range of services in the debt markets, the equity markets
and corporate advisory. Member companies of CIMB Group also provide services in lending, private banking,
private equity, Islamic capital markets as well as research capability in economics, equity and debt markets.
PIA is a private company incorporated in Hong Kong and its principal activity is the provision of consultancy
services to other PFG group of companies. PIA is a subsidiary of the Principal Financial Group, which was
established in 1879 and is a diversified global financial services group servicing more than 15 million
customers.
As at LPD, CIMB-Principal managed 43 conventional unit trust funds (including 2 Exchange-Traded Funds) and
22 Islamic unit trust funds. In addition to being able to draw on the financial and human resources of its
shareholders, CIMB-Principal has staff strength of 170, comprising of 146 Executives and 24 Non-Executives, as
at LPD.
The profile of CIMB-Principal’s key personnel are as follows:
John Campbell Tupling is the Chief Executive Officer of CIMB-Principal and has been an Alternate Director for
CIMB-Principal since 22 March 2004 and was redesignated as a principal Director of CIMB-Principal since 22
August 2007 upon his move to Malaysia. He was appointed the Chief Executive Officer / Executive Director of
CIMB-Principal on 1 November 2008. Has spent more than 11 years in various positions with Principal Financial
Group including COO - Asia (based in Hong Kong), Co-Head of Institutional Pension Segment (based in USA)
and Managing Director of Principal International Spain. Previous experience was 15 years with American
International Group in various capacities including Managing Director of AIG Mexico and AIG La Tandilense
(Argentina).
Mr. Tupling graduated from University of Western Ontario, Canada with Bachelor of Arts.
Munirah Khairuddin is the Deputy Chief Executive Officer of CIMB-Principal and joined CIMB-Principal on
1 November 2006. Previously, worked as a G7 Economist and strategist for a Fortune 500 multinational oil and
gas company. Prior to that, she was a fixed income portfolio manager for Emerging Markets at Rothschild
Asset Management in London. Apart from her Senior Management role, she is responsible for institutional
sales and marketing for both domestic and international investors and financial institutions. Her scope also
entails developing institutional business opportunities for CIMB-Principal in potential new markets. She
graduated from University of Newcastle Upon Tyne, UK with Bachelor of Arts (Honours) in Accounting and
Financial Analysis. She is also a Chartered Financial Analyst Charterholder.
Raymond Tang is the Chief Investment Officer of CIMB-Principal. He has been with CIMB-Principal since
1 October 2004. He has over 20 years of experience in the asset management business, managing both
institutional and unit trust funds. Prior to joining CIMB-Principal, he was the Chief Investment
Officer/Executive Director of CMS Dresdner Asset Management from 1996 to 2004 and was jointly responsible
in making regional asset allocation decisions within the Asia-Pacific ex-Japan. He began his career as an
investment officer in RHB Asset Management in 1987 for 4 years, before moving on to CIMB Securities as an
investment executive for 1 year. In 1992 he joined SBB Asset Management as a fund manager until 1996.
Currently, he is the Chairman of Malaysian Association of Asset Managers (MAAM) and the Chairman of FTSE
Bursa Malaysia Index Advisory Committee since 1 June 2011. He is also an invitee in the Executive Committee
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of Malaysia International Islamic Financial Centre (MIFC), as well as a Director of the Board of Securities
Industry Dispute Resolution Centre (SIDREC). He is a Fellow of the Chartered Institute of Management
Accountants (CIMA) United Kingdom and holds a Capital Markets Services Representative’s Licence for fund
management under CMSA.
Wong Loke Chin has 16 years of experience in fixed income fund management. He was transferred to CIMBPrincipal in 2005 from CIMB Debt Markets and Derivatives Department where he had managed arrange of
fixed income portfolios for Institutional clients. Prior to joining CIMB in 2001, he had with him more than 6
years of experience fixed income investment in the insurance industry. Wong Loke Chin holds a Bachelor of
Commerce from University of New South Wales, Australia and is a member of the Financial Markets
Association Malaysia. He obtained his Fund Manager’s representatives license in 2005.
Ng Tsu Miin has 16 years of experience in fixed income fund management. Ng Tsu Miin joined SBB Asset
Management Berhad in 2005 prior to the merger of SBB with CIMB-Principal. Prior to joining SBB, she had
been managing fixed income unit trust and institutional discretionary mandates for more than 7 years. Ng Tsu
Miin holds a Bachelor of Commerce (Honours) degree from New Zealand. She obtained her Fund Manager’s
representatives license in 2000.
Norazlina Abdul Rashid is the Head of Compliance. She joined CIMB-Principal on 3 May 2011. She has about
15 years work experience in legal and compliance. Her last position was a Senior Manager, Legal & Compliance
at ING Funds Berhad where her main responsibility was to advise the company on all legal and compliance
related matters. Prior to ING Funds, she was with RHB Unit Trust Berhad, where she was heading the
Corporate Affairs department. She was admitted to the Malaysian Bar in 1997 and started her career as an
advocate & solicitor specializing in the area of litigation.
11.9
Designated Investment Manager of the Funds
The designated Investment Managers for the respective Funds are: Permodalan Nasional Berhad undertakes the investment management of PNB SIF and AMBDN. The
designated Investment Manager for the Fund is Encik Wan Roshdi bin Wan Musa, whose profile is set out on
page 161.
MIM undertakes the investment management for AMBILTF. the designated Investment Manager for AMBILTF
is Abd Razak bin Don who joined Mayban Investment in July 2009. Razak has over 15 years experience in the
financial industry. Razak manages mandate for institutional, corporates and insurance funds. Previously he was
the Head of Institutional Sales for stock-broking division of Maybank Investment Bank Bhd. He was then a
licensed dealer’s representative, leading an institutional team which provided stock broking and related
services. Earlier he was the Head of Investment for Tune Money Capital. He was a member of a pioneering
team which secured both the Capital Markets Services License for Fund Management from Securities
Commission and approval for the company’s first 4 unit trust products to be marketed exclusively via on-line.
Prior to that, he was a senior fund manager for MNI Insurance where he managed insurance funds and then
for MIDF-Amanah, where he managed corporate funds. He is the holder of Capital Market & Services
Representative license.
CIMB-Principal undertakes the investment management for AMBBTF, AMBITF, AMBEBTF, AMBDI and AMBDA.
The designated fund managers as for the Funds are Wong Loke Chin and Ng Tsu Miin whose profile can be
found on page 167. They are supported by the other members of the investment team
UOB-OSK Asset Management Sdn Bhd (UOB-OSKAM) undertakes the investment management of the
AMBETF, AMBLTF Today, AMBLTF 2014, AMBUTF, AMBSCTF and AMBDY. With effect from 17 November 2008,
the External Investment Manager of AMBUTF and AMBSCTF has been changed from MIM to UOB-OSKAM. The
designated fund manager for the Funds is Ms. Lim Suet Ling, whose profile can be found on page 163 of the
Master Prospectus. She is supported by the other members of the investment team.
HwangDBS Investment Management Berhad (HwangDBS IM) undertakes the investment management of
AMBDTF. The designated fund manager for AMBDTF is Mr. Teng Chee Wai, whose particulars are set out on
page 164. He is supported by the other members of the investment team. The External Investment Manager is
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responsible for the daily portfolio management of AMBDTF, recommending strategic investment decisions and
policies to the Investment Committee for approval and implementation. In addition, they are also responsible
for ensuring that the investments of AMBDTF comply with the investment guidelines of AMBDTF.
11.10
Management Company’s Delegates
The Manager has appointed HSBC Trustee (Malaysia) Berhad to undertake the valuation of AMBDTF.
HSBC (Malaysia) Trustee Berhad is a member of the HSBC Plc. group of companies and forms part of the global
network of trust companies within HSBC Holdings Plc. Since 1993, HSBC (Malaysia) Trustee Berhad has
acquired experience in the administration of unit trust funds and as at LPD, HSBC has a workforce of 57
employees consisting of 41 executives and 12 non-executives.
HSBC is responsible for the computation of NAV of AMBDTF in accordance with the requirements of the
Prospectus and the Deed. HSBC will report to the Manager the value of investment of the Fund after the end
of each Business Day.
11.11
Declaration of Conflict of Interest Involving EIMs
The Manager has in place policies and procedures to deal with any conflict of interest situations. In making an
investment transaction for the Funds, the EIMs will not make improper use of its positions in managing the
Funds to gain, directly or indirectly, any advantage or to cause detriment to the interests of Unit Holders.
As at LPD, to the best of the Manager’s knowledge, there has been no occurrence of conflict of interest
involving the EIMs. The EIMs are the company independent from the Manager except for PNB as PNB is
deemed a related party transaction to the Manager.
11.12
Material Litigation and Arbitration
As at LPD, there is no material litigation or arbitration, including any pending or threatened and there are no
facts likely to give rise to any proceedings, which might materially affect the business / financial position of the
Manager or any of its delegates.
However, there is an ongoing legal suit which had commenced in 2004 against the MIM and another party in
which former clients of MIM are seeking to recover losses arising from their purchase of certain private
placement shares through MIM. MIM has appointed a reputable firm of solicitors to defend the claim. MIM's
solicitors are of the opinion that MIM has a reasonable defence to the claim. The hearing was concluded in 8
June 2010, however the judge has reserved the decision until further notice.
Subsequently, two (2) legal suits commenced in 2009 and 2010 respectively, against MIM and two different
parties in which MIM has appointed the same firm of solicitors to defend all allegations against MIM. One legal
suit is in relation to investment in bonds that has been downgraded subsequent to the purchase whilst the
other suit is from a non-discretionary client that claimed MIM had not affected any purchase or sale to his
portfolio that resulted in his investment losses. The latter claim was however dismissed by the court with cost.
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12 The Trustees of the Funds
12.1 Profile of Universal Trustee (Malaysia) Berhad
Universal Trustee (Malaysia) Berhad (UTMB) is the Trustee of AMBUTF, AMBBTF and AMBITF. Incorporated in
1974, UTMB has shareholders’ funds of RM6,025,529 and a paid-up share capital of RM500,000. UTMB has
more than 10 years of experience in handling unit trust matters. The Trustee had a pretax profit of
RM1,037,164 for the year ended 31 December 2009. The Trustee employs 32 experienced personnel
comprising 20 executives and 12 non-executives as at LPD and currently has 36 unit trust schemes under its
trusteeship.
Financial Performance
Paid-up capital
Shareholders' funds
Turnover
Pre-tax profit
Profit after taxation
Year Ended 31 December
2010
2009
(RM)
(RM)
500,000
500,000
6,206,813
6,025,529
3,332,772
3,591,350
832,347
1,037,164
743,784
801,154
2008
(RM)
500,000
5,786,875
4,166,722
1,256,263
1,007,591
Board of Directors
Tan Sri Dato‘ IR. Talha Bin Haji Mohamad Hashim
Y.A.M. Tunku Dato’ Seri Nadzaruddin ibni Almarhum Tuanku Ja’afar
Azrin Mirzhan Bin Kamaluddin (alternate to Y.A.M. Tunku Dato’ Seri Nadzaruddin ibni Almarhum Tuanku
Ja’afar)
Huang Chang Yi
Emily Huang Ye (alternate to Huang Chang Yi)
Wong Sai Fong
Putri Noor Shariza Binti Noordin Omar (alternate to Wong Sai Fong)
Profile of The Management Staff of the Trustee
Mr Liew Kok Wah is the Chief Executive Officer cum Company Secretary of UTMB. He joined UTMB in July
1988 and is responsible for the overall management of UTMB. He is a Fellow Member of CIMA, England, a
Registered Accountant of the MIA and a Member of the British Institute of Management, England. He started
his career as an Assistant Accountant with McAlister & Co Ltd from 1971 to 1974 and upon completion of the
CIMA examination in 1978, he was appointed as the Senior Management Accountant/Lecturer in the London
School of Accountancy, England, till October 1982. Upon his return to Malaysia he was the Group Finance and
Administration Manager with the Harpers Group till June 1983, before joining Faber Merlin Berhad as the
Group Management Accountant from 1986 till June 1988, and was also the Director of Studies in the Goon
Professional Centre Sdn Bhd.
Ms Punithamalar Veluppillai is the Senior Manager and is a Fellow Member of the ACCA and prior to joining
UTMB in 1994, she was handling accounts and tax matters for one of the subsidiaries of Tanjung Plc. In 1997
she joined EON Berhad and was assisting the treasury department. In 1998 she was appointed as the Assistant
Manager in UTMB. She is now responsible for supervising the overall functions of UTMB.
Ms Agnes Lai Yoke Ping is the Manager and is an Associate Member of the Chartered Institute of Management
Accountants, England. Prior to her present appointment in 1996, she has more than 10 years working
experience in the finance and administration division with a wholly owned subsidiary of a public listed
company. She has been handling unit trusts matters since joining UTMB and is currently responsible for the
compliance division of unit trust funds and human resource function of UTMB.
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st
Beninder Singh Johl is the Legal & Compliance Manager. He was appointed on 1 March 2011 and he
graduated with LLB from the University of Northumbria, Newcastle. He is responsible for the overall legal and
compliance matters of UTMB and is also responsible for private debt securities, clubs and timeshares. Prior to
joining UTMB, he was working in the banking industry, attending to legal and regulatory compliance matters.
In addition, he had also been dealing with various agreements in relation to the banking industry and also
overseeing the Probates and Administration of Estates.
Trustee’s Responsibility Statement
The Trustee has given confirmation of its willingness to assume the position as Trustee of the respective Fund
and undertakes all the obligations in accordance with the Deed, all relevant laws.
Trustee’s Disclosure of Material Litigation and Arbitration
As at LPD, UTMB advises that to the best of its knowledge, there is no material litigation or arbitration,
including those pending or threatened, and any facts likely to give rise to any proceedings which might
materially affect the business/financial position of the UTMB or any of its delegates.
12.2 Profile of HSBC (Malaysia) Trustee Berhad
The Trustee is HSBC (Malaysia) Trustee Berhad (Company No. 1281-T), a company incorporated in Malaysia
since 1937 and registered as a trust company under the Trust Companies Act 1949, with its registered address
th
at 13 Floor, Bangunan HSBC, South Tower, No 2, Leboh Ampang, 50100 Kuala Lumpur. The Trustee is a
member of the HSBC Holdings Plc. group of companies and forms part of the global network of trust
companies within HSBC Holdings Plc.
Financial Position
The Trustee has a paid-up capital of RM500,000.00. As at 31 December 2010, its shareholders’ funds totaled
RM23.33 million and it achieved a profit before tax of RM11.25 million.
The following is a summary of the past performance of the Trustee based on the audited accounts for the last
3 years:
Paid-up Share Capital
Shareholders’ Funds
Turnover
Profit before Tax
Profit after Tax
2010
(RM)
500,000
23,330,550
20,989,037
11,253,763
8,314,528
Year Ended 31 December
2009
2008
(RM)
(RM)
500,000
500,000
17,521,023
14,353,116
18,006,590
17,843,570
10,930,880
10,470,535
8,200,407
7,754,577
Experience in Trustee Business
Since 1993, the Trustee has acquired experience in the administration of unit trusts and as at 30 June 2011, is
the Trustee for 175 unit trust funds (including exchange traded funds and wholesale funds).
As at LPD, the Trustee has a workforce of 57 employees consisting of 41 executives and 16 non-executives. A
good number of the staff has been with the Trustee for many years. This element of continuity reflects an
intrinsic characteristic of trust services. The Trustee also believes in building team and talents by recruiting
new members with relevant experiences to replace the long serving retired colleagues.
Each client’s account is under the supervision of a trust officer who is able to focus his personal attention on
the administration of the account and reports directly to his manager.
The Trustee also has a Compliance Section whose responsibilities is to ensure that the Trustee’s business is
carried on in accordance with all relevant laws, codes, rules and standards of good market practice.
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Board of Directors
Mr Jonathan William Addis
Ms Lim Liang Hua
Dato’ Ranita Mohd Hussein
Ms Zainon Baba
Mr Alastair E Murray
Ms On Bee Heong
Ms Hew Su Chan (Alternate to Ms On Bee Heong)
Profile of Key Personnel
Ms Lim Liang Hua – Managing Director
She joined HSBC (Malaysia) Trustee Berhad in April 2004 and brings with her over 20 years of legal advisory
and problem solving skills in the banking and financial services industry. She holds a Bachelor of Economics and
Bachelor of Laws (LLB) from Monash University, Australia. She was admitted to practice as a Barrister &
Solicitor in Victoria, Australia in 1984 and was called to the Malaysian Bar in 1985. She was in private practice
for three years in the Klang Valley before joining the corporate sector, namely the banking and financial
institutions industry. She was the Chief Legal Adviser and Company Secretary for the Phileo Allied Bank Group
and the United Overseas Bank Group in Malaysia. Prior to her joining HSBC, she was Chief Executive Officer in
an established trust company.
Mr Yee Yit Seeng – Chief Operating Officer
He joined HSBC (Malaysia) Trustee Berhad in July 1984. He holds a Diploma in Banking and Finance and is a
Senior Associate of Institut Bank-Bank Malaysia. He has more than 22 years of experience in trust operations
including client service, systems/projects & office administration, compliance, internal control & audit, and
business development. He was also seconded to the HSBC Back-end Processing Office in Cyberjaya, Malaysia to
support the global securities operations.
Puan Maziah Yong – Head, Client Service
She joined HSBC (Malaysia) Trustee Berhad in November 2007. She holds an Advanced Diploma In Law from
Institut Teknologi MARA. Prior to her joining HSBC, she has more than 15 years working experience in trust
administration, especially relating to unit trust schemes.
Ms Lim Gim Lee – Head, Fund Administration
She joined HSBC (Malaysia) Trustee Berhad in December 2008. She holds an Advanced Diploma in Business
Administration - Institute of Business Administration and Management (IBAM). She was one of the pioneer
staff in setting up two unit trust management companies and has more than 13 years working experience in
the unit trust industry.
Ms Vimala Mahathevan - Head, Business Support
She joined HSBC (Malaysia) Trustee Berhad in January 2010. She holds a Diploma in Banking and Finance of
Institut Bank-Bank Malaysia and a Diploma in Computer Studies from the National Centre of Computing and
Information Technology (NCC). She has 9 years of general banking experience and 16 years of experience in
the securities industry which includes overseeing the settlement operations for foreign institutional clients,
client servicing, system implementation and being the liaison party with regulatory bodies such as Bursa
Malaysia. Prior to joining HSBC Trustee, she was the Head of Settlement, HSBC Securities Services, SubCustody and Clearing, in Malaysia.
Ms Lau Sook Yee – Head, Compliance
She joined HSBC (Malaysia) Trustee Berhad in September 2005. She has more than 20 years experience in
banking and treasury operations in both merchant and commercial banks.
Ms Janice Chang Hui Ching – Head, Corporate Trust
She joined HSBC (Malaysia) Trustee Berhad in November 2004. She holds a Bachelor of Business majoring in
Economics & Finance from RMIT University, Australia. Prior to her joining HSBC, she has more than 7 years
experience in Unit Trust Schemes and Corporate Bonds/Private Debt Securities in an established trust
company.
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Mr Yap Fook Meng – Head, Operational Risk Control and Administration
He joined HSBC (Malaysia) Trustee Berhad in August 2007. He holds a Diploma in Banking and Finance and is a
Senior Associate of Institut Bank-Bank Malaysia. He has more than 25 years experience in banking operations,
including systems implementation and support with HSBC Bank Malaysia Berhad. Besides local banking
experience, he had been seconded to other HSBC Group offices in United Kingdom and Brazil for systems
implementation and support.
Ms Tang Su Yin - Head, Due Diligence
She joined HSBC (Malaysia) Trustee Berhad in July 2010. She holds a LLB (Honours) from University of Hull,
United Kingdom and a Master of Finance from Royal Melbourne Institute of Technology, Australia. She has
more than 8 years experience in the unit trust industry which include compliance monitoring, legal advisory
and product development.
Ms Ng Pek Wan - Head, Documentation
She joined HSBC (Malaysia) Trustee Berhad in July 2010. She holds a Bachelor of Laws (LLB) from University of
London and was called to the Malaysian Bar in 2000. Prior to joining HSBC, she was in private practice for
almost 10 years with experience in commercial litigation and various corporate work.
Mr Ken Lore Kin Yip - Head, IT and Systems
He re-joined HSBC (Malaysia) Trustee Berhad in November 2010. He holds an Advanced Certificate in System
Support and a Degree in Computer Science. He has more than 10 years experience in managing systems;
primarily providing system solutions to operation needs, system analysis and design including process reengineering, project management of Trustee System for both Corporate and Retail clients.
Ms Tan Bee Nie - Head, Trustee Operations
She re-joined HSBC (Malaysia) Trustee Berhad in Jan 2011. She holds a Diploma in Business Administration
awarded by The Association of Business Executives (ABE), United Kingdom. She has 18 years experience in
fund administration relating to unit trust schemes, including fund accounting and valuation, with unit trust
management and trust companies.
Ms Joyce Lim – Manager, Business Development
She joined HSBC (Malaysia) Trustee Berhad in June 2011. She holds a Bachelor of Science in Finance and
International Business and a Master of Business Administration from the University of Bridgeport, Connecticut,
USA. She has more than 15 years working experience in financial services, including retail banking,
reinsurance, trustee, and unit trust industry.
Duties and Responsibilities of the Trustee
The Trustee’s main functions are to act as trustee and custodian of the assets of the Fund and to safeguard the
interests of Unit Holders of the Fund. In performing these functions, the Trustee has to exercise all due care,
diligence and vigilance and is required to act in accordance with the provisions of the Deed, Capital Markets
and Services Act 2007 and the Securities Commission’s Guidelines on Unit Trust Funds (“Guidelines”). Apart
from being the legal owner of the Fund’s assets, the Trustee is also responsible for ensuring that the Manager
performs its duties and obligations in accordance with the provisions of the Deed, Capital Markets and Services
Act 2007 and the Guidelines. In respect of monies paid by an investor for the application of units, the Trustee’s
responsibility arises when the monies are received in the relevant account of the Trustee for the Fund and in
respect of redemption, the Trustee’s responsibility is discharged once it has paid the redemption amount to
the Manager.
Retirement or Removal or Replacement of the Trustee
The Trustee may retire upon giving twelve (12) months’ notice to the Manager of its desire to do so, or such
shorter period as the Manager and the Trustee may agree, and may by Deed appoint in its stead or as an
additional trustee a new trustee approved by the relevant authorities and under any relevant law.
The Trustee may be removed and another trustee may be appointed by Special Resolution of the unit holders
at a duly convened meeting of which notice has been given to the unit holders in accordance with the Deed.
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Power of Trustee to Remove, Retire or Replace the Manager
The Manager may be removed by the Trustee on the grounds that the Manager:
(a)
the Manager has gone into liquidation, except for the purpose of amalgamation or reconstruction or
some similar purpose; or has had a receiver appointed; or has ceased to carry on business; or is in
breach of any of its obligations or duties under the Deed or the relevant laws; or has ceased to be
eligible to be a management company under the relevant laws; or
(b)
the Manager has failed or neglected to carry out its duties to the satisfaction of the Trustee and the
Trustee considers that it would be in the interests of unit holders for it to do so after the Trustee has
given notice to it of that opinion and the reasons for that opinion, and has considered any
representations made by the Manager in respect of that opinion, and after consultation with the
relevant authorities and with the approval of the unit holders by way of a Special Resolution.
In any of the above said grounds, the Manager shall upon receipt of a written notice from the Trustee ipso
facto cease to be the management company of the fund. The Trustee shall, at the same time, by writing
appoint some other corporation approved by the relevant authorities to be the management company of the
fund; such corporation shall have entered into such deed or deeds as the Trustee may consider to be
necessary or desirable to secure the due performance of its duties as management company for the fund.
Trustee’s Statement of Responsibility
The Trustee has given its willingness to assume the position as Trustee of the Fund and all the obligations in
accordance with the Deed, all relevant laws and rules of law. The Trustee shall be entitled to be indemnified
out of the Fund against all losses, damages or expenses incurred by the Trustee in performing any of its duties
or exercising any of its powers under this Deed in relation to the Fund. The right to indemnity shall not extend
to loss occasioned by breach of trust, wilful default, negligence, fraud or failure to show the degree of care and
diligence required of the Trustee having regard to the provisions of the Deed.
Trustee’s Disclosure of Material Litigation
As 30 June 2011, the Trustee is not engaged in any material litigation and arbitration, including those pending
or threatened, and is not aware of any facts likely to give rise to any proceedings which might materially affect
the business/financial position of the Trustee and any of its delegates.
Trustee’s Delegate
The Trustee has appointed The Hongkong And Shanghai Banking Corporation Ltd as custodian of the quoted
and unquoted local investments of the Fund. The assets of the Fund are held through their nominee company,
HSBC Nominees (Tempatan) Sdn Bhd. If and when the Fund should invest overseas, HSBC Institutional Trust
Services (Asia) Limited will be appointed as the custodian of the foreign assets of the Fund. Both The Hongkong
And Shanghai Banking Corporation Ltd and HSBC Institutional Trust Services (Asia) Limited are wholly owned
subsidiaries of HSBC Holdings Plc, the holding company of the HSBC Group. The custodian’s comprehensive
custody and clearing services cover traditional settlement processing and safekeeping as well as corporate
related services including cash and security reporting, income collection and corporate events processing. All
investments are registered in the name of the Fund or to the order of the Fund. The custodian acts only in
accordance with instructions from the Trustee.
The Trustee shall be responsible for the acts and omissions of its delegate as though they were its own acts
and omissions.
However, the Trustee is not liable for the acts, omissions or failure of third party depository such as central
securities depositories, or clearing and/or settlement systems and/or authorised depository institutions,
where the law or regulation of the relevant jurisdiction requires the Trustee to deal or hold any asset of the
Fund through such third parties.
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Trustee’s Delegates
1. The Hongkong And Shanghai Banking Corporation Limited (As Custodian) and assets held through HSBC
Nominees (Tempatan) Sdn Bhd (Co. No. 258854-D)
No 2 Leboh Ampang
50100 Kuala Lumpur
Telephone No: (603)20700744
Fax No: (603)20729787
2. HSBC Institutional Trust Services (Asia) Limited
6th Floor, Tower One
HSBC Centre
No 1 Sham Mong Road
Kowloon, Hong Kong
Telephone No: (852)25336333
Anti-Money Laundering and Anti-Terrorism Financing Provisions
The Trustee has in place policies and procedures across the HSBC Group, which may exceed local regulations.
Subject to any local regulations, the Trustee shall not be liable for any loss resulting from compliance of such
policies, except in the case of negligence, willful default or fraud of the Trustee.
Statement of Disclaimer
The Trustee is not liable for doing or failing to do any act for the purpose of complying with law, regulation or
court orders.
Related-Party Transactions/Conflict of Interest
As Trustee for the fund, there may be related party transaction involving or in connection with the fund in the
following events:1) Where the fund invests in instruments offered by the related party of the Trustee (e.g placement of
monies, structured products, etc);
2) Where the fund is being distributed by the related party of the Trustee as Institutional Unit Trust Adviser
(IUTA);
3) Where the assets of the fund are being custodised by the related party of the Trustee both as subcustodian and/or global custodian of the fund (Trustee’s delegate); and
4) Where the fund obtains financing as permitted under the Securities Commission’s Guidelines on Unit Trust,
from the related party of the Trustee.
The Trustee has in place policies and procedures to deal with conflict of interest, if any. The Trustee will not
make improper use of its position as the owner of the fund's assets to gain, directly or indirectly, any
advantage or cause detriment to the interests of unit holders. Any related party transaction is to be made on
terms which are best available to the fund and which are not less favourable to the fund than an arms-length
transaction between independent parties.
Subject to the above and any local regulations, the Trustee and/or its related group of companies may deal
with each other, the fund or any unit holder or enter into any contract or transaction with each other, the fund
or any unit holder or retain for its own benefit any profits or benefits derived from any such contract or
transaction or act in the same or similar capacity in relation to any other scheme.
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12.3
Profile of Malaysian Trustees Berhad
Malaysian Trustees Berhad (MTB) is one of the appointed Trustees of AMB. MTB, (Company No. 21666-V), a
company incorporated in Malaysia in January 1975, first commenced operations in August 1995 and is
registered as a trust company under the Trust Companies Act 1949. Its registered address is at Level 20, Plaza
OSK, Jalan Ampang, 50450 Kuala Lumpur. The Trustee has been in the unit trust industry for 10 years. As at
LPD, MTB has staff strength of 20 (16 executives and 4 non-executive) and has 6 funds under its trusteeship.
Financial Performance
The Trustee has a paid-up capital of RM550,000. As at 31 December 2010, its shareholders’ funds totalled
RM7,864,711 and it achieved a profit before tax of RM2,828,816
The following is a summary of the past performance of the Trustee based on its audited accounts for the last 3
years:
Paid-up capital
Shareholders' funds
Turnover
Pre-tax profit
Profit after taxation
Net earning per share
Net dividend per share
Year Ended 31 December
2010
2009
(RM)
(RM)
550,000
500,000
7,864,711
7,918,994
5,564,620
4,580,227
2,828,816
2,553,933
1,998,226
1,932,407
18.17
17.56
-
2008
(RM)
550,000
6,725,852
4,840,672
3,138,063
2,357,613
21.43
-
Board of Directors
Dato’ Nik Mohamed Din Bin Datuk Nik Yusoff
Foo San Kan
Dato’ Abdul Majit Bin Ahmad Khan
Woo Lai Mei
Tay Kok Leong
Profile of Key Personnel of The Trustee
Mr. Tay Kok Leong is the General Manager of MTB who is responsible for the overall management and growth
of MTB. Mr Tay graduated from Universiti Sains Malaysia in 1977 with a Bachelor of Social Science. Mr Tay
joined Pacific Bank in 1978 and rose to the position of First Vice President and later joined Maybank after the
bank merger exercise in 2001. He was the group general manager of a food-based company in Penang before
joining MTB in 2005.
Ms. Vanaja D/O N.S. Kanagaretnam is the Manager. She graduated with a Diploma in Accountancy from
Politeknik Ungku Omar. Prior to joining MTB, she was with another trustee company, responsible for trustee
work relating to unit trust funds and is familiar with trustee duties and the guidelines established by the
Companies Commission of Malaysia and SC. She has been with MTB since August 1995.
Ms Lim Poh Choo is the Manager of Compliance and Monitoring of MTB. She is a graduate of the Association
of International Accountants, UK. Prior to her joining MTB, she was attached to the corporate finance
department of a property development company. She has more than 12 years experience in corporate
finance.
Ms. Wong Chooi Yin, Manager, Finance and Administration, joined MTB in April 2000 as Executive, Finance
and Administration. Her duties include the maintenance of all trust accounts and records as well as the
accounts of MTB. She is also responsible for the administration matters of the company. Ms Wong graduated
with a Bachelor of Commerce (Economics and Finance) degree from the Curtin University of Technology,
Australia. Prior to joining MTB, she was attached to a consultancy firm.
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Trustee’s Responsibility Statement
The Trustee has given confirmation of its willingness to assume the position as Trustee of the respective Fund
and undertakes all the obligations in accordance with the Deed, all relevant laws.
Trustee’s Disclosure of Material Litigation and Arbitration
As at LPD, there is no current material litigation and arbitration, including any pending or threatened, and
there are no facts likely to give rise to any proceedings, which might materially affect the business / financial
position of MTB or of any of its delegates, except for the following:
Sutera Harbour Resort Sdn Bhd (“SHRSB”)
KL Proceedings
Solicitors for MTB
:
Messrs Adnan Sundra & Low
On the instructions of the Bondholders, MTB in its capacity as trustee had on 30.3.2009 declared an event of
default (default committed by SHRSB) pursuant to the terms of the Bond Trust Deed dated 2.1.2002. On
8.4.2009, SHRSB obtained a restraining order under Section 176(10) Companies Act 1965 in the High Court of
Kuala Lumpur (“KLHC”) (KLHC Originating Summons No. : D-24-97-2009) against SHRSB’s creditors. MTB on
instructions from the Bondholders, filed an application to set aside the said restraining order which was heard
and ultimately granted with cost by the Court on 13.7.2009. SHRSB filed its notice appeal to the Court of
Appeal on 17.7.2009 (Civil Appeal No. W-02-1520-2009) against the Court’s decision delivered on 13.7.2009.
No date has yet been fixed for the hearing of the appeal.
KK Proceedings
Solicitors for MTB
:
KK Counsel for MTB :
Messrs Adnan Sundra & Low
Messrs Jayasuriya Kah & Co.
On 3.4.2009, SHRSB filed an action against MTB at the High Court of Sabah & Sarawak at Kota Kinabalu
(“KKHC”) (KKHC Suit No. K22-63-2009-III) for inter alia, that the declaration of event of default be declared null
and void by the Court; damages suffered by SHRSB (to be assessed) as a result of the issuance of the
declaration of event of default; an order restraining MTB from acting on the event of default. Further to that,
SHRSB had obtained an ex-parte injunction at the KKHC on 7.4.2009 against MTB from inter alia carrying out
any further acts pursuant to the declaration of the event of default. As such, MTB had on 23.4.2009, filed an
application to set aside the ex-parte injunction order. The hearing took place on 24.4.2009. On 28.4.2009, the
Court delivered its decision setting aside SHRSB’s injunction.
SHRSB had on 29.7.2009 filed a second injunction application against MTB premised on almost similar facts as
the first injunction application. On 8.9.2009, MTB filed an application to strike out SHRSB’s KK civil suit (KKHC
Suit No. K22-63-2009-III). The hearing for the injunction application and striking out applications were
originally fixed for hearing at the KKHC sometime in October 2009. However, the hearing dates were
adjourned and both applications have been fixed for mention on 21.12.2009 at the KKHC to permit parties
sufficient time to complete and work out the terms of a settlement proposal that was put forth by SHRSB and
Sutera Harbour Holdings Sdn Bhd for the Bondholders and loan stock holders of SHRSB to consider
Sutera Harbour Holdings Sdn Bhd (“SHHSB”)
KK Proceedings
Solicitors for MTB :
KK Counsel for MTB :
Messrs Azhar & Goh
Messrs Jayasuriya Kah & Co
Due to the Settlement Agreement failed to be materialized, MTB has declared an Event of Default against
SHHSB as per Loan Stock holders’ instruction via resolution pursuant to the terms of the Trust Deed. On
22.11.2010, SHHSB filed an action against MTB at the High Court of Sabah & Sarawak at Kota Kinabalu
(“KKHC”) (KKHC Suit No. K22-190-2010) for inter alia, that the declaration of event of default be declared null
and void by the Court; damages suffered by SHHSB (to be assessed) as a result of the issuance of the
declaration of event of default; at the same time, an injunction application was filed by SHHSB against MTB to
restrain MTB from acting further on the event of default.
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Court has allowed SHHSB’s injunction application on 15.3.2011 and MTB has on 5.4.2011 filed a Notice of
Appeal against the decision.
Tanco Holdings Berhad ( “THB”)
The Company acting as Security Trustee received a sealed writ of summons from THB to restrain the Company
from disposing THB’s assets pursuant to an occurrence of Event of Default due to non-payment of interest and
principal to Lehman Brothers Commercial Corporation Asia Ltd. (“LBCCA”) (in liquidation). The Company has
appointed Messrs. Chooi & Co to act for the Company and the fees are to be borne by LBCCA. LBCCA has also
appointed Messrs. Shearn Delamore & Co to act on their behalf for the abovementioned suit.
On 9/3/2010, the court ruled against MTB’s application to set aside the injunction. Our solicitor, Messrs. Chooi
& Co filed an appeal against the Court’s decision in granting the injunction in favour of Tanco on 6 April 2010.
21 February 2011, Tanco has entered into a Settlement Agreement with LBCCA. Pursuant to the Settlement
Agreement, Tanco was given 4 months time to fulfill the condition precedents (“CP”) contained therein. The
Settlement Agreement will only take effect once the CP are fulfilled and a consent judgment is recorded.
Olympia Industries Berhad
1. Azri Chuah & Yap Advocates - Olympia Industries Berhad
the Saman Pemula no.S 24 NCVC-5-20010 dated 01.10.2010.
Olympia Industries Berhad (“Olympia”) entered into a Debt Restructuring Scheme with the lenders where we
have been appointed as Earmarked Asset Intercreditor Agent and Security Agent for the benefit of the lenders.
Certain assets were earmarked to the Option holders, which a parcel land known as HS(D)11559, PT No. 243
Bandar Petaling Jaya, Daerah Petaling Negeri (“Property”) owned by Harta Sekata Sdn Bhd (“HSSB”) which is
part of the earmarked assets. We have lodged a private caveat on the said property pending a dispute on the
legal owner issue.
At any event, HSSB has no good title to the Property, such earmarked asset shall be replaced by Kenny Height
Developments Sdn Bhd (“Kenny Height”)’s share. At any event, HSSB has good title on the Property, Olympia
shall cause to dispose of the said Property to repay the lenders within 5 and a half year from the date of the
Agreement, failing which we shall dispose it on their behalf where a Power of Attorney has been granted to us.
A Judgment has been granted against HSSB (“Plaintiff”) and Olympia in respect of a sale and purchase
agreement between Taipan Focus Sdn Bhd (“Defendant”) and Olympia remains valid which impliedly meant
Olympia shall cause the private caveat be removed.
However, we received an instruction from Olympia not to remove the caveat because they have filed an
appeal. The Defendant then filed an Originating Summon against us as Security Trustee to remove the caveat.
At the same time, we have filed a counter claim under Suit No. S-22NCVC-130-20010 against Taipan Focus Sdn
Bhd.
On 14 January 2011, the Court ruled in favour of Taipan Focus Sdn Bhd. We have then filed an appeal on the
ruling. Messrs. Kumar & Partnership has been appointed as our legal counsel.
The suit has been resolved on terms agreed upon by the respective parties. It has also been agreed between
parties that there will be no enforcement of any order as to costs and/or damages and that all pending actions
in the High Court be withdrawn without liberty to file afresh. Such notice has been filed on 12 May 2011.
Pilecon Engineering Berhad
1. Shook Lin & Bok Advocates & Solicitors Pilecon Engineering Berhad
the Saman Pemula no.D 24 NCC-337 – Tahun 2010 dated 27.10.2010.
Under the Scheme of Arrangement pursuant to Section 176(1) Companies Act 1965, Pilecon Engineering
Berhad (“Issuer”) had issued Redeemable Convertible Secured Loan Stocks (“RCSLS”) to its creditors.
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Pilecon defaulted on the semi-annual coupon payments since 28/9/2007 which resulted to an occurrence of
Event of Default (“EOD”).
In the latest Extraordinary General Meeting held on 30 April 2010 for the purpose of declaring an EOD but the
mandate was not carried as the requirement of 75% majority of the votes cast was not met.
RCSLS holders instructed us to act on a simple majority instruction to declare an EOD. After due consultation
with our Directors and legal counsel, we are not prepared to exercise our discretion to declare an EOD.
On 26 May 2010, all RSCLC holders except Dana Harta (who decided to engage their own legal counsel)
decided to engage Messrs Shook Lin & Bok (“SLB”) as legal counsel. A letter by SLB dated 6 July 2010 was sent
to us requesting for our reason for refusing to take enforcement action against the Issuer to which our legal
counsel Messrs Mah Kamariyah & Philip Koh (“MKP”) replied on behalf of us.
On 28 July 2010, we had a meeting with the RCSLS holders except for Dana Harta (SLB’s clients) at SLB’s office
that SLB’s clients, upon advice of SLB’s legal counsel, we and SLB’s clients agreed to seek court order enforcing
us to call for EOD in order to take action against the Issuer.
On 12 August 2010, SLB had drafted Originating Summons (“OS”) and Affidavit in Support (“Affidavit”).
Thereafter, SLB had filed the OS and Affidavit to High Court and we had on 20 October 2010 sent a copy of OS
and Affidavit to MKB to act for us in the hearing which is fixed on 26 October 2010.
On 15 April 2011, MKP informed that the Pilecon’s application for injunction to restrain us from taking any
recovery actions under the Trust Deed has been dismissed with costs of RM25,000.00 to be paid forthwith. In
regards to the costs, the said sum of RM25,000.00 is to be paid by Pilecon to us within 14 days. With the above
decision, there is no longer any ad interim injunction order.
th
On 27 April 2011, in regards to the hearing of Pilecon’s and Allure Gold’s appeal to the Court of Appeal
against the High Court decision in dismissing their applications to intervene and to set aside the Order dated
27-10-2011 (“Appeals”) the Court of Appeal has unanimously dismissed the Appeals with costs of
RM20,000.00 per appeal to be paid by each Respondent which is Pilecon and Allure Gold will each bear and
pay the costs of RM20,000.00 each to MTB with a total costs of RM40,000.00 to be paid to MTB.
th
However on 4 May 2011, we have been informed that Pilecon has filed an appeal to the Court of Appeal
against the decision of the High Court in dismissing its application for injunction (“Appeal”). Further, Pilecon
has also filed an application for an Erinford injunction to be granted pending the disposal of the Appeal. The
Erinford injunction is now fixed for hearing on 12 July 2011 and the affidavit-in reply has been filed by our
Solicitor.
th
We have been informed on 10 June 2011 that Pilecon has filed an application for leave to appeal against the
Court of Appeal’s decision given on 27-4-2011 (“Leave Application”) to the Federal Court. The Leave
Application is fixed for hearing on 29-6-2011. The affidavit in reply to oppose the Leave Application has been
filed by our Solicitor.
th
On 29 June 2011 we have been informed by our Solicitor that the motion for leave to appeal was dismissed
by the Federal Court, and the Applicant (Pilecon) was ordered to pay costs of RM20,000.00 to MTB.
th
On 12 July 2011 we have been informed that High Court had granted an Erinford Injunction against the
Malaysian Trustees Berhad, to restrain MTB from taking any steps to recover the amount due and owing under
the RCSLS until the disposal of the appeal to the Court of Appeal. In this regard, the Plaintiff’s appeal to the
Court of Appeal will likely be disposed off soon as the case management is fixed on 14-7-2011.
Pursuant to this Erinford injunction, we are ordered to stop all steps to recover the RCSLS, including steps
taken to realize the securities. MTB may appeal against the learned High Court’s decision in granting the
Erinford injunction, to the Court of Appeal within 30 days from the July 12,2011.
We have appointed M/s Mah-Kamariyah & Philip Koh Advocates & Solicitors to act for us.
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Trustee’s Delegate
Malaysian Trustees Berhad has delegated its custodian function to Maybank Custody Services (MCS), a unit
within Maybank.
MCS commenced operations in 1983 and has been a custodian for unit trust funds since 1989. It provides
clearing and custody services for Malaysian equity and fixed income securities to domestic and foreign
institutional clients. In addition, it offers global custody services to domestic institutions/clients that have
foreign investments. MCS has staff strength of 30 employees, comprising 25 executives and 5 non-executives
as at LPD.
12.4
Profile of AmanahRaya Trustees Berhad
ART was incorporated under the Companies Act 1965 on 23 March 2007 and registered as a trust company
under the Trust Companies Act 1949. ART is a subsidiary of Amanah Raya Berhad (ARB) which is wholly owned
by the Minister of Finance (Incorporated). ART took over the corporate trusteeship functions of ARB and
acquired ARB’s experience of more than 45 years in trustee business. ART has been registered and approved
by the SC to act as trustee to unit trust fundsand has 154 unit trust funds under its trusteeship. As at LPD, ART
has 79 staff (56 Executives and 23 Non-Executives).
ART has an authorised capital RM5,000,000. Its issued and paid-up share capital is RM2,000,000 and
RM1,000,000 respectively.
The shareholders of ART are:
% of equity
20
20
20
20
Amanah Raya Berhad (344986-V)
Amanah Raya Nominees (Tempatan) Sdn Bhd (434217-U)
Amanah Raya Capital Sdn Bhd (549057-K)
AmanahRaya Capital Group Sdn Bhd (760289-U)
AmanahRaya Modal Sdn Bhd (760322-X)
Amanah Raya Nominees (Asing) Sdn Bhd (684546-P)
10
10
FINANCIAL PERFORMANCE
The following is a summary of the past performance of ART based on audited financial statements for
financial year ended 31 December, since its incorporation on 23 March 2007:
Paid-up share capital
Shareholders' funds
Turnover
Pretax profit
Profit after taxation
Year Ended 31
December 2010
RM'000
1,000
3,214
24,847
18,265
13,590
Year Ended 31
December 2009
RM'000
1,000
3,624
20,024
14,340
10,625
Year Ended 31
December 2008
RM'000
1,000
5,999
17,282
11,783
8,597
Board of Directors
Datuk Idrus Bin Harun – Chairman / Independent
Hajjah Habsah Binti Bakar – Director / Chief Executive Officer / Non-Independent
Dato’ Ahmad Rodzi Bin Pawanteh – Director / Non-Independent
Datin Aminah Binti Pit Abd Raman – Director / Independent
Puan Alina Binti Hashim – Director / Non-Independent
Tuan Haji Ab. Gani Bin Haron – Director / Independent
Dato’ Haji Ahmad Kamal Bin Abdullah Al-Yafii – Director / Independent
Encik Zainudin Bin Hj. Suhaimi – alternate to Hajjah Habsah Binti Bakar
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Key Management Staff
Hajjah Habsah Binti Bakar - Chief Executive Officer
Encik Zainudin Bin Hj. Suhaimi - General Manager
Encik Arzlee Bin Abdul Rahman – Assistant General Manager
Encik Zainul Abidin Bin Hj. Ahmad - Company Secretary
Encik Azril Bin Abd Kadir – Compliance and Audit Department Senior Manager
Encik Mohd Sofian Bin Hj. Kamaruddin – Operations Department Senior Manager
Encik Mohd Aziyan Bin Abdullah – Finance and Accounts Department Manager
Puan Wan Zaleha Binti Wan Kamarul Zaman – Legal Department Manager
Encik Ahmad Zamil Bin Shaharuddin – Marketing and Business Development Department Manager
Cik Fazila Banoo Binti Manzur Elahi – Chief Executive Officer’s Office Manager
Profile of the Key Management Staff
Hajjah Habsah binti Bakar - Chief Executive Officer
Hajjah Habsah Binti Bakar is the Director and Chief Executive Officer of ART effective from 16 February 2007.
She has served as General Manager at Amanah Raya Berhad for 12 years. She was in charge of various
departments such as Corporate Trust, Legal, Branch Operations, Marketing, Corporate Communications,
Product Development and Customer Relationship Management of Amanah Raya Berhad during that tenure.
She holds a Master of Business Administration from University of Malaya, Bachelor of Law (Hons) from
University of Malaya and a postgraduate Diploma in Syariah Law and Practice from the International Islamic
University Malaysia. She has vast experience in legal administration since joining the Judicial and Legal Service
in 1985. She has served at the Attorney General’s Chambers, Ministry of Housing and Local Government, the
High Court and the Department of Public Trustee.
Encik Zainudin Bin Hj Suhaimi
Encik Zainudin Bin Hj Suhaimi is the General Manager of ART. He holds a Degree in Business Administration
(Finance) from Universiti Putra Malaysia and a Diploma in Business Studies from Universiti Teknologi MARA
(UiTM). He has served the Corporate Trust Department of Amanah Raya Berhad since 1992. He is also a trust
officer at Amanah Raya Labuan Limited. He is an associate member of the Financial Planning Association of
Malaysia since 2005.
Encik Arzlee Bin Abdul Rahman
Encik Arzlee Bin Abdul Rahman is the Assistant General Manager of ART. He holds a Bachelor of Science in
Economics/Finance from The University of Hartford, Connecticut, USA. Prior to joining ART in July 2009,, he
managed Amanah Raya Nominees (Tempatan) Sdn Bhd for about 5 years, in which he developed custodial &
securities services. Overall, he has more than 15 years working experience in the financial industry, including
corporate forex & money market in a local bank treasury, stock broking company, insurance and finance
companies.
Encik Zainul Abidin Bin Hj. Ahmad
Encik Zainul Abidin Bin Hj. Ahmad is the Group Company Secretary. He has more than 15 years’ working
experience in legal and secretarial matters. He began his career in 1990 as a Legal Assistant with Messrs Kam
Woon Wah & Company. In February 2002, he joined ARB where he oversees the secretarial matters of the
Group.
Encik Azril Bin Abd Kadir
Encik Azril Bin Abd Kadir is the Senior Manager, Compliance and Audit Department of ART. He holds a Bachelor
of Science in Business Administration from the University of Missouri Columbia. He has more than 11 years
experience in the collective investment scheme industry and was the registered compliance officer of a local
asset management company.
Encik Mohd Sofian Bin Hj. Kamaruddin
Encik Mohd Sofian Bin Hj. Kamaruddin is the Senior Manager, Operations Department of ART. He holds a
Master in Business Administration from Universiti Teknologi MARA and Bachelor of Accountancy (Hons) from
Universiti Putra Malaysia (formerly known as Universiti Pertanian Malaysia). He is the Head of Operations
Department overseeing the operations of both unit trust funds and debt capital market & trusts of the
Company. Prior to the current assignment he has with him more than nine (9) years experience in audit and
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compliance in capital market industry. He has served Amanah Raya Berhad since March 2003.. He is also a
member of the Malaysian Institute of Accountants.
Encik Mohd Aziyan Bin Abdullah
Encik Mohd Aziyan Bin Abdullah is the Manager, Finance and Accounts Department of ART.He holds a Bachelor
of Accountancy (Hons) from Universiti Teknologi MARA. He joined ART in April 2009 and oversees the finance
and administration functions of the company. He is also a member of the Malaysian Institute of Accountants.
Puan Wan Zaleha Binti Wan Kamarul Zaman
Puan Wan Zaleha Binti Wan Kamarul Zaman is the Manager, Legal of ART. She holds a Masters in Business
Administration from Universiti Teknologi MARA Malaysia and a Bachelor of Law (LLB Hons) from University of
Huddersfield, United Kingdom. She was called to the Malaysian Bar in 2001 and had pursued legal practice
specialising in conveyancing for three years before joining Amanah Raya Berhad in 2004. She had served as a
Compliance Officer and Business Development Executive at the Corporate Trust Department of Amanah Raya
Berhad.
Encik Ahmad Zamil Bin Shaharuddin
Encik Ahmad Zamil Bin Shaharuddin is the Manager, Marketing & Business Development of ART. He holds a
Master of Business Administration from University of Wales, United Kingdom, Advanced Diploma in Business
and Management from Swansea Institute of Higher Education, and Diploma in Banking Studies from Universiti
Teknologi MARA. He started his career in Market Research industry and later spent 11 years in the
Stockbroking industry, mainly dealing with high-net-worth and retail institutional clients. He later headed a
Sales Branch of an automotive company for 2 years prior to joining ART.
Cik Fazila Banoo Binti Manzur Elahi
Cik Fazila Banoo Binti Manzur Elahi is the Manager, CEO’s Office of ART. She holds a Master of Business
Administration (majoring in Human Resource & Organizational Development) from University of Malaya and
Bachelor in Business Administration (Transport) from MARA University of Technology (UiTM). She has joined
ART in August 2008 and is currently in charge as main liaison on HR related matters, mainly with the Group
Human Resources Department, Amanah Raya Berhad (ARB). Prior joining ART, she has seven (7) years of
working experience in the IT industry, having worked in the field of Customer Service, Project Management
and Human Resource & Office Administration.
Trustee’s Responsibility Statement
The Trustee consents and agrees to assume the position as Trustee of the Fund and undertakes all the
obligations in accordance with the Deeds, all relevant laws and rules of law, and agree and undertake to
provide an indemnity to the Manager for the benefit of the registered holders of the Funds for any loss
incurred as a result of any non-performance of the Trustee.
Trustee’s Disclosure of Material Litigation and Arbitration
As at LPD, ART is not engaged in any material litigation or arbitration either as plaintiff or defendant, and the
Trustee is not aware of any proceedings, pending or threatened or of any facts likely to give rise to any
proceedings which might materially affect the business financial position of ART or any of its delegates.
Trustee’s Delegate for AMBDA
AmanahRaya Trustees Bhd has delegated its custodian function of AMBDA to Maybank Custody Services
(MCS), a unit within Malayan Banking Berhad. MCS commenced operations in 1983 and has been a custodian
for unit trust funds since 1989. It provides clearing and custody services for Malaysian equity and fixed income
securities to domestic and foreign institutional clients. In addition, it offers global custody services to domestic
institutions/clients that have foreign investments. MCS has staff strength of 34 employees, comprising 26
executives and 8 non-executives as at LPD.
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12.5 Duties and Obligations of the Trustees
The Trustee’s main functions are to act as trustee and custodian of the assets of the Fund and to safeguard the
interests of Unit Holders of the Fund. In performing these functions, the Trustee has to exercise all due care,
diligence and vigilance and is required to act in accordance with the provisions of the Deed, Capital Markets
and Services Act 2007 and the Securities Commission’s Guidelines on Unit Trust Funds. Apart from being the
legal owner of the Fund’s assets, the Trustee is also responsible for ensuring that the Manager performs its
duties and obligations in accordance with the provisions of the Deed, Capital Markets and Services Act 2007
and the Guidelines.
The duties and obligations imposed on the Trustees are as follows: 
To act as custodian of the assets of the Funds and to safeguard the interests of Unit Holders. The Trustees
are to actively monitor the administration of the Funds by the Manager to ensure that the interests of the
Unit Holders are upheld at all times. In discharging its duties, the Trustees should not only depend on
submission of reports by the Manager;

The Trustees are to report to the SC if it is of the view that the Manager has not acted in the interests of Unit
Holders or in accordance with the provisions of the Deeds or that it has failed to comply with the Guidelines
and the Act;

Ensure that the Manager does not make improper use of its position in managing the Fund to gain, directly
and indirectly, an advantage for itself or any other person or to cause detriment to the interest of Unit
Holders;

To act continuously as Trustees under the Funds until such Funds are terminated or until the Trustees have
retired from such Funds;

To show the degree of care and diligence required of a Trustees in carrying out its functions and duties and in
protecting the rights and interest of the Unit Holders to which the Deeds relates;

To keep or cause the Manager to keep proper records of all transactions, dividends, interests and income
received and distributed and accounts in relation to the Funds;

To be informed of any investments or disposals which the Manager undertakes not later than the next
Business Day after the day in which the transactions were undertaken;

To be responsible for the collection and periodical distribution of income earned from the investment
portfolio to the Unit Holders subject to delegation of such duties to the Manager;

To require the Manager to keep it fully informed as to details of the Manager’s policies on investments and
any changes thereof. Whenever it is of the opinion that these policies are not in the interests of the Unit
Holders, the Trustees may, after considering any representations made by the Manager in respect of that
opinion, summon a meeting of Unit Holders to consider its opinion and the actions that may be taken against
the Manager; and

To cause the accounts to be audited at the end of each accrual period / financial year by the auditor and that
each Unit Holder of the Funds is furnished with a copy of the audited accounts by post within 2 months from
the date on which the accounts are balanced and closed in respect of each year.
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12.6 Retirement, Removal or Replacement of the Trustee
The Trustee may retire upon giving twelve (12) months’ notice to the Manager of its desire to do so, or such
shorter period as the Manager and the Trustee may agree, and may by Deed appoint in its stead or as an
additional trustee a new trustee approved by the relevant authorities and under any relevant law. Pursuant to
section 299(1) of the Act, it is the duty of the Manager to remove the Trustee as soon as it becomes aware that
the Trustee: •
•
•
•
Has ceased to exist;
Has not been validly appointed;
Is not eligible to be appointed or to act as Trustee under section 290 of the Act;
Has failed or refused to act as Trustee in accordance with the provisions or covenants of the Deed or the
provisions of the Act;
• Is under investigation for conduct that contravenes the Trust Companies Act, 1949, the Trustee Act, 1949,
the Companies Act, 1965, or any securities law;
• When a receiver is appointed over the whole or a substantial part of the assets or undertaking of the
existing trustee and has not ceased to act under the appointment or a petition is presented for the winding
up of the existing trustee (other than for the purpose of and followed by a reconstruction, unless during or
following such reconstruction the existing trustee becomes or is declared to be insolvent).
The Trustee may be removed and another Trustee (duly approved as aforesaid) may be appointed by a special
resolution of the Unit Holders at a duly convened meeting of which notice has been given to the Trustee and
the Manager. The Manager will summon a meeting of the Unit Holders for the purpose of considering and if
thought fit, passing a resolution for the removal of the Trustee in the event that the Unit Holders request the
Manager to do so, in the manner as stated in the Deeds of the respective Funds.
12.7
Powers of the Trustee to Remove or Replace the Manager
The Manager may be removed by the Trustee on the grounds that the Manager:
(c) the Manager has gone into liquidation, except for the purpose of amalgamation or reconstruction or some
similar purpose; or has had a receiver appointed; or has ceased to carry on business; or is in breach of any
of its obligations or duties under the Deed or the relevant laws; or has ceased to be eligible to be a
management company under the relevant laws; or
(d) the Manager has failed or neglected to carry out its duties to the satisfaction of the Trustee and the
Trustee considers that it would be in the interests of Unit Holders for it to do so after the Trustee has
given notice to it of that opinion and the reasons for that opinion, and has considered any representations
made by the Manager in respect of that opinion, and after consultation with the relevant authorities and
with the approval of the Unit Holders by way of a Special Resolution.
In any of the above said grounds, the Manager shall upon receipt of a written notice from the Trustee ipso
facto cease to be the management company of the Fund. The Trustee shall, at the same time, by writing
appoint some other corporation approved by the relevant authorities to be the management company of the
Fund; such corporation shall have entered into such deed or deeds as the Trustee may consider to be
necessary or desirable to secure the due performance of its duties as management company for the Fund.
12.8
Statement of Disclaimer
The Trustee is not liable for doing or failing to do any act for the purpose of complying with law, regulation or
court orders.
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13 Salient Terms of the Deeds
The following is a summary of the Deeds. Certain salient terms of the Deeds are summarised in other sections
of this Prospectus. Recipients of this Prospectus and all prospective investors in the Units should refer to the
Deeds to confirm specific information and to obtain a detailed understanding of the respective Funds. The
Deeds are available for inspection at the principal place of business of the Manager at 34th Floor, Menara PNB,
201-A, Jalan Tun Razak, 50400 Kuala Lumpur and the principal place of business of the respective Trustee.
The Deeds
The AMB Family of Funds is a family of trust funds constituted by the Deeds, as entered into between the
respective Trustees and AMB. The Deeds came into effect on the respective dates of registration by the SC.
Each Unit Holder shall be entitled to the benefit of and shall be bound by the terms and conditions of the
respective Deed.
Pursuant to the Deeds, the Trustee shall take into its custody or control all the assets of the Funds and hold the
same in trust for the Unit Holders in accordance with the Deeds and all relevant laws. The Deeds are governed
by, and shall be construed in accordance with, the laws of Malaysia.
Rights and Liabilities of Unit holders
1.
Rights of Unit Holders
A Unit Holders has the right, among others, to the following:(a) To receive the distribution of income (if any), participate in any increase in the value of the units
and to other such rights and privileges as set out under the Deed(s) for the Fund;
(b) To call for Unit Holders’ Meetings, and to vote for the removal of the Trustee or the Manager
through a special resolution;
(c) To exercise the cooling-off right (if applicable) ; and
(d) To receive annual and interim reports.
However, a Unit Holder would not have the right to require the transfer to the Unit Holder of any of
the investments of the Funds. Neither would a Unit Holder have the right to interfere with or
question the exercise by the Trustee or the Manager on his behalf, of the rights of the Trustee as
trustee of the investments of the Funds.
Liabilities of Unit Holders
(a) No Unit Holder is liable for any amount in excess of the purchase price paid for the Units as
determined pursuant to the Deed(s) at the time the Units were purchased;
and
(b) Unit Holders shall not be under any obligation to indemnify the Trustee and / or the Manager in
the event that the liabilities incurred by the Trustee and the Manager in the name of or on behalf
of the Funds pursuant to and / or in the performance of the provisions of the Deed(s) exceed the
NAV of the Funds, and any rights of indemnity of the Trustee and / or the Manager shall be limited
to recourse to the Funds.
Note:
Please be advised that if you invest in units through an IUTA which adopts the nominee system of
ownership, you would not be considered to be a Unit Holder under the Deed and you may
consequently not have all the rights ordinarily exercisable by a Unit Holder (for example, the right
to call for a Unit Holders’ Meeting and to vote thereat and the right to have your particulars
appearing in the register of Unit Holders of the Fund)
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2.
MAXIMUM FEES AND CHARGES PERMITTED BY THE DEEDS
The maximum rates for the management fee, Trustee fee, sales charge and redemption fee are provided
in the Deeds and are set out in Section 1.3 of this Prospectus.
Currently no redemption charges are imposed upon redeeming of Units of the Funds except for PNB
SIF where a redemption charge is payable for early redemption of Units but not if Units are held till
the maturity date of the Fund. Details of the redemption charge of PNB SIF are set out in Section 1.3
and Section 7.1.2 of this Prospectus.
3.
INCREASE IN FEES AND CHARGES FROM THE LEVEL DISCLOSED IN THE PROSPECTUS AND THE
MAXIMUM RATE PROVIDED IN THE DEEDS
The management fee and the Trustee fee shall not exceed the maximum stated in the Deeds. The
annual Management Fee and the Trustee Fee cannot be charged at a rate higher than that disclosed
in the Prospectus unless the Manager and the Trustee have agreed on a higher rate in accordance with
the Deeds and Unit Holders have been notified of the higher rate and the effective date.
The sales and repurchase charges shall not exceed the maximum as set out in the Deeds. The
Manager may only charge a higher sales charge than that disclosed in the Prospectus in accordance
with the Deeds and all relevant laws.
4.
PERMITTED EXPENSES PAYABLE OUT OF THE FUNDS’ PROPERTY
Only expenses which are directly related and necessary may be charged to the Funds. These include
(but are not limited to) the following:
(i)
(ii)
(iii)
(iv)
(v)
commissions/fees paid to brokers in effecting dealings in the investments of the Funds shown
on the contract notes or confirmation notes;
taxes and other duties charged to the Funds by the Government and other authorities;
fees and other expenses properly incurred by the Auditor and/or Tax Agent appointed for the
Funds;
fees for the valuation of any investment of the Funds by independent valuers for the benefit of
the Funds; and
costs incurred for any modification of the Deeds or for meetings of Unit Holders (save where
such modification or meeting is convened for the benefit of the Manager and/or the Trustee).
The Deeds provide that expenses such as general overheads, costs for services expected to be
provided by the Manager, promotional expenses and expenses incurred in the registering and issuing
of the prospectuses (unless no service charges are levied on the Units sold) and the remuneration of
any delegate of the Manager, shall not be charged to the Funds. The Trustee shall ensure that all
expenses charged to the Funds are legitimate, not excessive and does not go beyond standard
commercial rates.
5.
REMOVAL, RETIREMENT AND REPLACEMENT OF THE MANAGER AND THE TRUSTEE
Please refer to section 13.7 of this Prospectus (in relation to the retirement, removal and replacement
of the Manager) and section 13.6 of this Prospectus (in relation to the retirement, removal and
replacement of the Trustee).
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6.
TERMINATION OF THE FUNDS
The commencement date of the Fund are as stated in the Deeds and continue until the Maturity Date (if
applicable) or if determined by the Trustee under the provisions in the Deeds. The Trustee shall as soon
as practicable after the determination of the Fund give to each of the Unit Holder notice of such
determination.
The Trustee may inter alia in any of the following events determine the Funds:a)
if the Manager shall go into liquidation (except a voluntary liquidation for the purpose of
reconstruction or amalgamation upon terms previously approved in writing by SC); or
b)
if in the opinion of the Trustee, the Manager has ceased to carry on business; or
c)
if in the opinion of the Trustee, the Manager has failed to comply with the Deed to the prejudice
of the Unit Holders.
and shall summon a meeting of Unit Holders in accordance with the provisions of the Deeds for the
purpose of seeking directions from the Unit Holders. If at any such meeting a special resolution to
terminate and wind up the Funds is passed by the Unit Holders, the Trustee shall apply to the Court
for an order confirming such special resolution.
7.
UNIT HOLDERS’ MEETING
The Unit Holders may apply to the Manager to summon a meeting for any purpose. Unless otherwise
required by law, the Manager shall, not later than 21 days of receiving an application from not less
than 50 or 1/10 in number, whichever is the lesser, of all Unit Holders, convene a meeting of the Unit
Holders. The Trustee and the Manager may convene a Unit Holders' meeting in accordance with the
Deed for any purpose.
The quorum for a meeting save and except for AMBILTF, AMBETF, and PNB SIF shall be 5 Unit Holders
present in person or by proxy. No business shall be transacted at any meeting unless the requisite
quorum is present at the commencement of business.
In respect of AMBILTF and AMBETF the quorum for a meeting shall be 5 Unit Holders present in person or by
proxy provided always that the quorum for a meeting of the Unit Holders of the Fund convened for the
purpose of removing the Manager and/or the Trustee shall be 10 Unit Holders of the Fund whether present in
person or by proxy, who must hold in aggregate at least 50% of the Units of the Fund in circulation at the time
of the meeting. No business shall be transacted at any meeting unless the requisite quorum is present at the
commencement of business.
Further, in respect of PNB SIF, the quorum required for a meeting of the Unit Holders shall be 100 Unit Holders
or 1/2 in number of the Units Holders if the Fund has less than 100 Unit Holders, whether present in person or
by proxy. However where the meeting is convened for the purpose of removing the Manager and/or the
Trustee the quorum shall be 100 Unit Holders (or half that number if total Unit Holders are less than 100)
holding in aggregate at least 50% of the Units in circulation at the time of the meeting. If the Fund has 5 or less
Unit Holders, the quorum required for a meeting of the Unit Holders of the Fund shall be 2 Unit Holders,
whether present in person or by proxy and if the meeting is for the purpose of removing the Manager and/or
Trustee the Unit Holders forming the quorum must hold in aggregate at least 50% of the Units in circulation at
the time of the meeting.
Unless otherwise prescribed by law, a Unit Holders' meeting summoned pursuant to the Deeds shall be held
not later than 2 months after the notice was given, at the time and place stipulated in the notice and
advertisement.
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14 Exemptions and Variation Granted by the SC
Exemptions from the Guidelines for AMBUTF, AMBBTF, AMBITF, AMBILTF, AMBETF, AMBDTF,
AMBEBTF, AMBSCTF, AMBLTF Today, AMBLTF 2014, PNB SIF, AMBDY, AMBDA and AMBDI
(i)
Shareholders, Directors and Key Personnel
Clause 4.05 (9) - Guidelines 2003
Clause 3.07
- Guidelines 2008
“A director of a management company should not hold office as director of more
than one management company at any one time. In addition, a director should not hold
office as member of the investment committee of funds managed and administered by
another management company.”
Exemption from this Clause was extended to allow all of the directors of AMB to remain as
directors and member of the investment committee of other Funds and administered by
other management companies. ”
(ii)
Members of Investment Committee
Clause 6.02(8) - Guidelines 2003
Clause 6.04
- Guidelines 2008
“A member of the investment committee should not hold office as:
(a)
(b)
(c)
(d)
(e)
member of an investment committee of Funds managed and administered by
another management company;
director of another management company;
Shariah advisor for the same Fund;
member of the panel of advisors for the same Fund; and
an officer of the delegate that carry on the Fund management function for the
Fund.”
An exemption from this Clause is given to Tun Ahmad Sarji bin Abdul Hamid, Tan Sri
Dato’ Sri Hamad Kama Piah bin Che Othman and Tan Sri Dato’ Md. Desa bin Pachi, to allow
them to be members of the Investment Committees of all Funds. All of them save for Tan Sri
Dato’ Dr. Wan Mohd. Zahid bin Mohd. Noordin are also members of investment
committees of other Funds managed and administered by another management company.
An exemption from this Clause is also given to allow Dato’ Idris bin Kechot be a member of
an investment committee of funds managed and administered by another management
company and also be a director of another management company.
 Exemption from the Guidelines for AMBDA
(i)
Management Fee
Clause 8.01(5) Clause 9.09
-
Guidelines 2003
Guidelines 2008
“Clause 8.01(5) of the Guidelines (2003) states that the annual management fee should be
accrued daily and should be calculated based on the NAV of the Fund. The number of days in
a year should be used in calculating the accrued fees”.
AMBDA had obtained an exemption from this requirement as the management has decided
to allow the Fund to remunerate the Manager under a profit sharing scheme with the Fund
in ration 15:85 based on the Net Investment Income of the Fund after deduction of Trustee
Fee and other operating expenses, instead of charging an Annual management Fee based on
the NAV.
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
Exemptions from the Guidelines for PNB SIF
(i)
Delegation of Function
Clause 5.09 Guidelines 2008
“An officer of the delegate (whether foreign or otherwise) should not hold office as member
of:
(a)
the investment committee of any fund for which the fund manager is appointed to
manage”.
Tan Sri Dato’ Sri Hamad Kama Piah bin Che Othman, is the Director, President
and Group Chief Executive of PNB, the Investment Manager. He is thus
deemed an officer of PNB. An exemption was obtained to allow him to become
investment committee member of AMB Family of Funds.
(ii)
Issuance of New Units
Clause 10.06 - Guideline 2008
“A trustee should create or cancel units immediately on receipt of, and in accordance
with, the instructions given by the management company and only for cash.”
PNB will implement a Unit swap arrangement with PNB SIF whereby the 623,800,000
PNB REIT units held by PNB will be exchanged for 623,800,000 Units. In view of the above,
an exemption from this clause was obtained to facilitate the Unit swap arrangement.
(iii)
Investment Spread Limit
Schedule A, Clause (10) -
Guidelines 2008
“The value of a fund’s investments in units/shares of any collective investment
scheme must not exceed 20% of the fund’s NAV”
An exemption from this clause was obtained from the SC in order to allow the Fund to invest
up to 50% of PNB SIF’s NAV in PNB REIT.
(iv)
Investment Concentration Limit
Schedule A, Clause (24) - Guidelines 2008
“A fund’s investments in collective investment schemes must not exceed 25% of the
units/shares in any one collective investment scheme.”
An exemption from this clause was obtained from the SC in order to allow PNB SIF to invest
in all of the units issued by PNB REIT.

Exemptions from the Guidelines for AMBDN
(i)
Shareholders, Directors and Key Personnel
Clause 3.07
- Guidelines 2008
“A director of a management company should not:
(a)
(b)
hold office as director of more than one management company at any one time;
and
hold office as member of the investment committee of funds managed and
administered by another management company.”
Exemption from these Clauses were extended to allow all of the directors of AMB to
remain as directors of other management companies and all directors of AMB, save
for Tan Sri Dato’ Dr. Wan Zahid bin Mohd. Noordin and Dato’ Idris bin Kechot, to
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remain as members of the investment committee of other funds and administered
by other management companies. ”
(ii)
Delegation of Function by the Management Company
Clause 5.09(a) - Guidelines 2008
“An officer of the delegate (whether foreign or otherwise) should not hold office as member
of:
(a)
the investment committee of any fund for which the fund manager is appointed to
manage”.
AMB has obtained an exemption from the above clause to allow several directors of
PNB, i.e. Tun Ahmad Sarji bin Abdul Hamid and Tan Sri Dato’ Dr. Wan Zahid bin
Mohd. Noordin to be members of the investment committee of the fund.
(iii)
Members of Investment Committee
Clause 6.04(a), (b) and (e) -Guidelines 2008
“A member of the investment committee should not hold office as:
(a)
(b)
(e)
member of an investment committee of funds managed and administered by
another management company;
director of another management company;
an officer of the delegate that carry on the fund management function for the
fund.”
Exemption from these clauses were extended to allow:
(i)
(ii)
(iii)

Tun Ahmad Sarji bin Abdul Hamid and Tan Sri Dato’ Md. Desa bin Pachi to remain
as the members of the investment committee of the funds managed and
administered by other management companies;
to allow all members of the investment committee to be directors of other
management companies, i.e. Amanah Saham Nasional Berhad and/or Pelaburan
Hartanah Nasional Berhad; and
to allow Tun Ahmad Sarji bin Abdul Hamid and Tan Sri Dato’ Dr. Wan Zahid bin
Mohd. Noordin to remain as directors of PNB, the delegate that carry on the fund
management function for the fund.
Variation from the Guidelines for AMBILTF
(i) Investment Spread limit
Schedule C, Appendix 1, Paragraph 2.03 (3)
Schedule A, Paragraph 18
-
Guidelines 2003
Guidelines 2008
The Fund has been granted a variation to Schedule C, Appendix 1, paragraph
2.0 (3) of the Guidelines on Unit Trust Fund (2003) and is allowed to hold securities
of, and the securities relating to, any group of companies to a maximum of 30% of
the NAV of the Fund (the normal restriction is 20% of the Fund’s NAV).
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15 Related Party Transactions/Conflict of Interest
Existing and Potential Related Party Transactions
(i) PNB has been appointed as the External Investment Manager of PNB SIF. As AMB is a wholly owned
subsidiary company of ASNB and PNB holds 100% equity interest in ASNB, AMB is effectively a whollyowned subsidiary company of PNB. In view of the above, the appointment of PNB as the External
Investment Manager is deemed a related party transaction.
(ii) PHNB, the management company of PNB REIT is also related to AMB by virtue of PNB holding 69.99%
equity interest in PHNB.
(iii) PNB SIF acquired 623,800,000 PNB REIT units from PNB and issued 623,800,000 new PNB SIF Units to PNB
in consideration thereof.
(iv) In addition, PNB SIF acquired 20,200,000 PNB REIT units for cash.
Conflict of Interest
AMB and its holding company, ASNB are both unit trust management companies managing unit trust funds.
The investment committee members for all the funds managed by AMB comprise the same individuals. In
addition to the above, Tun Ahmad Sarji bin Abdul Hamid is also an investment committee member for all the
funds managed by ASNB except for Amanah Saham Wawasan 2020. Tan Sri Dato’ Sri Hamad Kama Piah bin Che
Othman is also an investment committee member for all the funds managed by ASNB except for Amanah
Saham Wawasan 2020. Tan Sri Dato’ Md. Desa bin Pachi is an investment committee member for 9 funds
managed by ASNB, except for Amanah Saham Wawasan 2020. Dato’ Idris bin Kechot is an investment
committee member for only one fund managed by ASNB which is Amanah Saham Wawasan 2020. Previously,
the appointment of the investment committee members for all the other funds managed by ASNB and AMB
had been approved by the SC.
In addition, PNB the holding company of ASNB and penultimate holding company of AMB has been appointed
as the External Investment Manager of PNB SIF and AMB Dana Nabeel, and all the unit trust funds managed by
ASNB.
Policies on Dealing with Conflict of Interest Situations
The Manager has in place policies and procedures to deal with any conflict of interest situations. In making an
investment transaction for the Fund, the Investment Manager will not make improper use of its position in
managing the Fund to gain, directly or indirectly, any advantage or to cause detriment to the interests of Unit
Holders.
As at LPD, to the best of the Manager’s knowledge, there has been no occurrence of conflict of interest
involving the Manager. Where a conflict or potential conflict of interest is identified, this must be evaluated by
the Senior Compliance Officer and disclosed to the Chief Executive Officer (“CEO”) of the Manager for the next
course of action. Conflict of interest situations involving the CEO will be disclosed to the Board of Directors of
the Manager for a decision on the next course of action. Directors or staff which are in advisory positions such
as portfolio managers or staff who have access to information on transactions are not allowed to engage in
dealings on their own account. Investment Committee members who hold substantial shareholdings or
directorships in public companies shall refrain from any decision making if the Fund invest in the particular
share or stocks of such companies.
Details of AMB’s Directors’ Direct and Indirect Interest in Other Corporations Carrying on a Similar Business
As at the LPD, AMB’s Directors’ do not have any direct or indirect interest in other corporations carrying on a
similar business save for Tun Ahmad Sarji bin Abdul Hamid and Tan Sri Dato’ Sri Hamad Kama Piah bin Che
Othman who each hold 1 subscriber share in PHNB but have no beneficial interest in the same.
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Details of AMB’s Substantial Shareholders’ Direct and Indirect Interest in Other Corporations Carrying on a
Similar Business
As at the LPD, ASNB, the holding company of AMB does not have any direct or indirect interest in other
corporations carrying on a similar business.
Declaration of Conflict of Interest of Experts
The Manager is not aware of any existing or potential conflicts of interest involving the Solicitors save and
except the Messrs Zainal Abidin & Co are also panel solicitors for PNB and ASNB.
The Manager is not aware of any existing or potential conflicts of interest involving the tax advisors.
Declaration of Conflict of Interest
PNB and funds managed by PNB collectively hold more than 50% shareholdings in Maybank. Maybank has
extended facilities to AMB and has also been appointed as the Distributor of AMB’s Family of Funds, both of
which are in the ordinary course of business. In addition, AMB has agreed-in-principle to appoint Etiqa Takaful
Berhad, effectively a 70% subsidiary company of Maybank, to provide insurance coverage on group personal
accident takaful for the Unit Holders. Mayban Investment Berhad (MIB), formerly known as Aseambankers,
which is a wholly owned subsidiary company of Maybank, had on 14 August 2008 disclosed to the Manager
that MIB has also agreed to provide consultancy services to DBMB. MIB had declared the consultancy services
to be in the ordinary course of business and has entered into an agreement with DBMB dated 2 July 2008
under which MIB is entitled to a fee from DBMB for consultancy services for referral of clients including PNB
SIF.
Related-Party Transactions/Conflict of Interest in Relation to the Trustee
As Trustee for the Fund, there may be related party transaction involving or in connection with the Fund in the
following events:1)
Where the Fund invests in instruments offered by the related party of the Trustee (e.g placement of
monies, structured products, etc);
2)
Where the Fund is being distributed by the related party of the Trustee as IUTA;
3)
Where the assets of the Fund are being custodised by the related party of the Trustee both as subcustodian and/or global custodian of the Fund (Trustee’s delegate); and
4)
Where the Fund obtains financing as permitted under the Guidelines, from the related party of the
Trustee.
The Trustee has in place policies and procedures to deal with conflict of interest, if any. The Trustee will not
make improper use of its position as the owner of the fund's assets to gain, directly or indirectly, any
advantage or cause detriment to the interests of the Unit Holders. Any related party transaction is to be made
on terms which are best available to the Fund and which are not less favourable to the Fund than an armslength transaction between independent parties.
Subject to any local regulations, the Trustee and/or its related group of companies may deal with each other,
the Fund or any Unit Holder or enter into any contract or transaction with each other, the Fund or any Unit
Holder or retain for its own benefit any profits or benefits derived from any such contract or transaction or act
in the same or similar capacity in relation to any other scheme.
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16 Tax Advisor’s Letter
TAXATION ADVISOR’S LETTER ON
TAXATION OF THE TRUSTS AND UNIT HOLDERS
(Prepared for inclusion in this Prospectus)
23 June 2011
Ernst & Young Tax Consultants Sdn Bhd
Level 23A, Menara Milenium
Pusat Bandar Damansara
50490 Kuala Lumpur
The Board of Directors
Amanah Mutual Berhad
th
4 Floor, Balai PNB
201-A, Jalan Tun Razak
50400 Kuala Lumpur
Dear Sirs
Taxation of the unit trust and unit holders
This letter has been prepared for inclusion in this Prospectus to be dated 17 September 2011 in connection
with the offer of units in the unit trusts listed below (hereinafter referred to as “the Funds”).
1.
2.
3.
AMB Dana Arif;
AMB Dana Ikhlas; and
AMB Dana Nabeel.
The purpose of this letter is to provide prospective unit holders with an overview of the impact of taxation on
the Funds and the unit holders.
Taxation of the fund
The taxation of the 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 Funds comprising dividends, profits and other investment
income derived from or accruing in Malaysia after deducting tax allowable expenses, is subject to Malaysian
income tax, which is currently imposed at the rate of 25%.
Tax allowable expenses would comprise expenses falling under Section 33(1) and Section 63B of the MITA.
Section 33(1) permits a deduction for expenses that are wholly and exclusively incurred in the production of
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gross income. In addition, Section 63B allows unit trusts a deduction for a portion of other expenses (referred
to as ‘permitted expenses’) not directly related to the production of income, as explained below.
“Permitted expenses” refer to the following expenses incurred by the Funds which are not deductible under
Section 33(1) of the MITA:
the manager's remuneration,
maintenance of the register of unit holders,
share registration expenses,
secretarial, audit and accounting fees, telephone charges, printing and stationery costs and postage.
These expenses are given a partial deduction under Section 63B of the MITA, based on the following formula:
A x B
4C
where
A is the total of the permitted expenses incurred for that basis period;
1
B
is gross income consisting of dividend , interest and rent chargeable to tax for that basis
period; and
C
is the aggregate of the gross income consisting of dividend (whether exempt or not),
interest and rent, and gains made from the realisation of investments (whether chargeable
to tax or not) for that basis period,
1
provided that the amount of deduction to be made shall not be less than 10% of the total permitted expenses
incurred for that basis period.
Exempt income
The following income of the Funds is exempt from income tax:
Dividends
Tax exempt dividends received from investments in companies which had previously enjoyed or are
currently enjoying certain tax incentives provided under the relevant legislation.
Paragraph 12B, Schedule 6 of MITA states that exempt dividend includes any dividend paid, credited or
distributed to any person where the company paying such dividend is not entitled to deduct tax under
Section 108 of MITA.
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;
Pursuant to Section 15 of the Finance Act 2011, 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.
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(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
2
Financial Services Authority (LOFSA)
(vi)
interest received from bonds or securities issued by Pengurusan Danaharta Nasional Berhad; and
(vii)
interest derived from bonds (other than convertible loan stock) paid or credited by any company
listed on the Malaysian Exchange of Securities Dealing and Automated Quotation Berhad
3
(MESDAQ) .
Discount
Tax exemption is given on discount paid or credited to any unit trust in respect of investments as
specified in items (i), (ii) and (iii) above.
Foreign income
Dividends, profits and other income derived from sources outside Malaysia and received in Malaysia by a
resident unit trust is exempt from Malaysian income tax. However, such income may be subject to tax in the
country from which it is derived.
Gains from the realisation of investments
Pursuant to Section 61(1) (b) of the MITA, gains from the realisation of investments will not be treated as
income of the Fund and hence, are not subject to income tax. Such gains may be subject to real property
gains tax ("RPGT") under the Real Property Gains Tax Act, 1976 (“RPGT Act”), if the gains are derived from the
sale of chargeable assets, as defined in the RPGT Act. Any chargeable gain on the disposal of chargeable
assets from 1 January 2010 onwards would be subject to RPGT at the applicable tax rate depending on the
holding period. However, under the Real Property Gains Tax (Exemption) (No.2)Order 2009, Funds can enjoy
a full exemption from RPGT on disposals of chargeable assets held more than 5 years and an effective tax rate
of 5% for all disposals of chargeable assets which are held for 5 years or less.
Tax credit
Tax deducted at source from Malaysian dividends received by the Funds will be available for set-off either
wholly or partly against the tax liability of the Funds. Should the tax deducted at source exceed the tax liability
4
of the Funds, the excess is refundable to the Funds.
Taxation of unit holders
For Malaysian income tax purposes, unit holders will be taxed on their share of the distributions received from
the Funds.
2
Pursuant to Section 4 of the Finance Act 2011, 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.
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The income of unit holders from their investment in the Funds broadly falls under the following categories:
1.
taxable distributions; and
2.
non-taxable and exempt distributions.
In addition, unit holders may also realise a gain from the sale of units.
The tax implications of each of the above categories are explained below:
1.
Taxable distributions
Distributions received from the Funds will have to be grossed up to take into account the underlying
tax paid by the Funds and the unit holder will be taxed on the grossed up amount.
Such distributions carry a tax credit, which will be available for set-off against any Malaysian income
tax payable by the unit holder. Should the tax deducted at source exceed the tax liability of the unit
holder, the excess is refundable to the unit holder.
Distributions received by a non-resident unit holder from income which has been taxed at source at
25%, will not be subject to any further income tax in Malaysia.
Please refer to the paragraph below for the income tax rates applicable to the grossed up
distributions.
2.
Non-taxable and exempt distributions
Tax exempt distributions made out of gains from the realisation of investments and other exempt
income earned by the Funds will not be subject to Malaysian tax in the hands of the unit holders.
Rates of tax
The Malaysian income tax chargeable on the unit holders depends on their tax residence status and whether
they are individuals, corporations or trust bodies. The income tax rates charged are as follows:
Unit holders
Malaysian income tax rates
Malaysian tax resident:
Individual and non-corporate unit holders (such as
co-operatives, associations and societies)
Progressive tax rates ranging from 0% to
26%
Trust bodies
25%
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Unit holders
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
Malaysian income tax rates
For every first RM500,000 of chargeable
5
income @ 20%
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.
Gains from sale of units
Gains arising from the realisation of investments will not be subject to income tax in the hands of unit holders
unless they are insurance companies, financial institutions or traders/ dealers in securities.
Unit splits and reinvestment of distributions
Unit holders may also receive new units as a result of unit splits or may choose to reinvest their distributions.
The income tax implications of these are as follows:
Unit splits – new units issued by the Funds pursuant to a unit split will not be subject to income tax in the
hands of the unit holders.
Reinvestment of distributions – unit holders may choose to reinvest their income distribution in new units
by informing the Manager. In this event, the unit holder will be deemed to have received the distribution
and reinvested it with the Funds.
**********************************************
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.
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We hereby confirm that, as at the date of this letter, the statements made in this report correctly reflect our
understanding of the tax position under current Malaysian tax legislation and the related interpretation and
practice thereof, all of which are subject to change, possibly on a retrospective basis. We have not been
retained (unless specifically instructed hereafter), nor are we obligated to monitor or update the statements
for future conditions that may affect these statements.
The statements made in this letter are not intended to be a complete analysis of the tax consequences relating
to an investor in the Funds. As the particular circumstances of each investor may differ, we recommend that
investors obtain independent advice on the tax issues associated with an investment in the Funds.
Yours faithfully
Ernst & Young Tax Consultants Sdn Bhd
Noor Rida Hamzah
Partner
Ernst & Young Tax Consultants Sdn. Bhd. has given its consent to the inclusion of the Taxation Adviser’s Letter
in the form and context in which it appears in this Prospectus and has not withdrawn such consent prior to the
delivery of a copy of this Prospectus for approval.
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Taxation adviser’s letter in respect of the taxation
of the unit trust and the unit holders
(prepared for inclusion in this prospectus)
16 August 2011
Ernst & Young Tax Consultants Sdn Bhd
Level 23A, Menara Milenium
Pusat Bandar Damansara
50490 Kuala Lumpur
The Board of Directors
Amanah Mutual Berhad
th
4 Floor, Balai PNB
201-A, Jalan Tun Razak
50400 Kuala Lumpur
Dear Sirs
Taxation of the unit trust and unit holders
This letter has been prepared for inclusion in this Prospectus to be dated 17 September 2011 in connection
with the offer of units in the unit trusts listed below (hereinafter referred to as “the Funds”).
1.
2.
3.
4.
5.
6.
7.
AMB Index-Linked Trust Fund
AMB Ethical Trust Fund
AMB Enhanced Bond Trust Fund
AMB Smallcap Trust Fund
AMB Lifestyle Trust Fund Today
AMB Lifestyle Trust Fund 2014
AMB Dividend Trust Fund
The purpose of this letter is to provide prospective unit holders with an overview of the impact of taxation on
the Funds and the unit holders.
Taxation of the fund
The taxation of the Funds is subject to the provisions of the Malaysian Income Tax Act, 1967 (“MITA”),
particularly Sections 61 and 63B.
Subject to certain exemptions, the income of the Funds comprising dividends, interest and other investment
income derived from or accruing in Malaysia after deducting tax allowable expenses, is subject to Malaysian
income tax, which is currently imposed at the rate of 25%.
Tax allowable expenses would comprise expenses falling under Section 33(1) and Section 63B of the MITA.
Section 33(1) permits a deduction for expenses that are wholly and exclusively incurred in the production of
gross income. In addition, Section 63B allows unit trusts a deduction for a portion of other expenses (referred
to as ‘permitted expenses’) not directly related to the production of income, as explained below.
‘Permitted expenses’ refer to the following expenses incurred by the Funds which are not deductible under
Section 33(1) of the MITA:
the manager's remuneration,
maintenance of the register of unit holders,
share registration expenses,
secretarial, audit and accounting fees, telephone charges, printing and stationery costs and postage.
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These expenses are given a partial deduction under Section 63B of the MITA, based on the following formula:
A x B
4C
where
A is the total of the permitted expenses incurred for that basis period;
16
B
is gross income consisting of dividend interest and rent chargeable to tax for that basis
period; and
C
is the aggregate of the gross income consisting of dividend (whether exempt or not),
interest and rent, and gains made from the realisation of investments (whether chargeable
to tax or not) for that basis period,
1
provided that the amount of deduction to be made shall not be less than 10% of the total permitted expenses
incurred for that basis period.
Exempt income
The following income of the Funds is exempt from income tax:
Dividends
Tax exempt dividends received from investments in companies which had previously enjoyed or are
currently enjoying certain tax incentives provided under the relevant legislation.
Paragraph 12B, Schedule 6 of MITA states that exempt dividend includes any dividend paid, credited or
distributed to any person where the company paying such dividend is not entitled to deduct tax under
Section 108 of MITA.
Interest
(i)
interest from securities or bonds issued or guaranteed by the Government of Malaysia;
(ii)
interest from debentures or Islamic securities, (other than convertible loan stock) approved by
the Securities Commission;
(iii)
interest from Bon Simpanan Malaysia issued by Bank Negara Malaysia;
(iv)
interest derived from Malaysia and paid or credited by banks or financial institutions licensed
under the Banking and Financial Institutions Act 1989 or the Islamic Banking Act 1983;
(v)
interest from Islamic securities originating from Malaysia, other than convertible loan stock
issued in any currency in Malaysia and approved by Securities Commission or Labuan Offshore
2 7
Financial Services Authority (LOFSA)
(vi)
interest received from bonds or securities issued by Pengurusan Danaharta Nasional Berhad; and
1
Pursuant to Section 15 of the Finance Act 2011, 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.
2
Pursuant to Section 4 of the Finance Act 2011, with effect from 11 February 2010, ‘LOFSA’ refers to Labuan Financial
Services Authority (LFSA).
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(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
3 8
(MESDAQ) . .
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, interest and other income derived from sources outside Malaysia and received in Malaysia by a
resident unit trust is exempt from Malaysian income tax. However, such income may be subject to tax in the
country from which it is derived.
Gains from the realisation of investments
Pursuant to Section 61(1) (b) of the MITA, gains from the realisation of investments will not be treated as
income of the Funds and hence, are not subject to income tax. Such gains may be subject to real property
gains tax ("RPGT") under the Real Property Gains Tax Act, 1976 (“RPGT Act”), if the gains are derived from the
sale of chargeable assets, as defined in the RPGT Act. Any chargeable gain on the disposal of chargeable
assets from 1 January 2010 onwards would be subject to RPGT at the applicable tax rate depending on the
holding period. However, under the Real Property Gains Tax (Exemption) (No.2)Order 2009, Funds can enjoy
a full exemption from RPGT on disposals of chargeable assets held more than 5 years and an effective tax rate
of 5% for all disposals of chargeable assets which are held for 5 years or less .
Tax credit
Tax deducted at source from Malaysian dividends received by the Funds will be available for set-off either
wholly or partly against the tax liability of the Funds. Should the tax deducted at source exceed the tax liability
4 9
of the Funds, the excess is refundable to the Funds . .
Taxation of unit holders
For Malaysian income tax purposes, unit holders will be taxed on their share of the distributions received from
the Funds.
The income of unit holders from their investment in the Funds broadly falls under the following categories:
1.
taxable distributions; and
2.
non-taxable and exempt distributions.
In addition, unit holders may also realise a gain from the sale of units.
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.
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The tax implications of each of the above categories are explained below:
1.
Taxable distributions
Distributions received from the Funds will have to be grossed up to take into account the underlying
tax paid by the Funds and the unit holder will be taxed on the grossed up amount.
Such distributions carry a tax credit, which will be available for set-off against any Malaysian income
tax payable by the unit holder. Should the tax deducted at source exceed the tax liability of the unit
holder, the excess is refundable to the unit holder.
Distributions received by a non-resident unit holder from income which has been taxed at source at
25% will not be subject to any further income tax in Malaysia.
Please refer to the paragraph below for the income tax rates applicable to the grossed up
distributions.
2.
Non-taxable and exempt distributions
Tax exempt distributions made out of gains from the realisation of investments and other exempt
income earned by the Funds will not be subject to Malaysian income tax in the hands of the unit
holders.
Rates of tax
The Malaysian income tax chargeable on the unit holders depends on their tax residence status and whether
they are individuals, corporations or trust bodies. The income tax rates charged are as follows:
Unit holders
Malaysian income tax rates
Malaysian tax resident:
Individual and non-corporate unit holders (such as
co-operatives, associations and societies)
Progressive tax rates ranging from 0% to
26%
Trust bodies
25%
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Unit holders
Corporate unit holders
(iii) 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)
(iv)
Companies other than (i) above
Malaysian income tax rates
For every first RM500,000 of chargeable
5
income @ 20%
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.
Gains from sale of units
Gains arising from the realisation of investments will not be subject to income tax in the hands of unit holders
unless they are insurance companies, financial institutions or traders/ dealers in securities.
Unit splits and reinvestment of distributions
Unit holders may also receive new units as a result of unit splits or may choose to reinvest their distributions.
The income tax implications of these are as follows:
Unit splits – new units issued by the Funds pursuant to a unit split will not be subject to income tax in the
hands of the unit holders.
Reinvestment of distributions – unit holders may choose to reinvest their income distribution in new units
by informing the Manager. In this event, the unit holder will be deemed to have received the distribution
and reinvested it with the Funds.
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.
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We hereby confirm that, as at the date of this letter, the statements made in this report correctly reflect our
understanding of the tax position under current Malaysian tax legislation and the related interpretation and
practice thereof, all of which are subject to change, possibly on a retrospective basis. We have not been
retained (unless specifically instructed hereafter), nor are we obligated to monitor or update the statements
for future conditions that may affect these statements.
The statements made in this letter are not intended to be a complete analysis of the tax consequences relating
to an investor in the Funds. As the particular circumstances of each investor may differ, we recommend that
investors obtain independent advice on the tax issues associated with an investment in the Funds.
Yours faithfully
Ernst & Young Tax Consultants Sdn Bhd
Noor Rida Hamzah
Partner
Ernst & Young Tax Consultants Sdn. Bhd. has given its consent to the inclusion of the Taxation Adviser’s Letter
in the form and context in which it appears in this Prospectus and has not withdrawn such consent prior to the
delivery of a copy of this Prospectus for approval.
AMB Client Services 03-2034 0800
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Master Prospectus 2011/2012
TAXATION ADVISOR’S LETTER ON
TAXATION OF THE TRUST AND UNIT HOLDERS
(Prepared for inclusion in this Prospectus)
23 June 2011
Ernst & Young Tax Consultants Sdn Bhd
Level 23A, Menara Milenium
Pusat Bandar Damansara
50490 Kuala Lumpur
The Board of Directors
Amanah Mutual Berhad
th
4 Floor, Balai PNB
201-A, Jalan Tun Razak
50400 Kuala Lumpur
Dear Sirs
Taxation of the unit trust and unit holders
This letter has been prepared for inclusion in this Prospectus to be dated 17 September 2011 in connection
with the offer of units in the unit trust known as PNB Structure Investment Fund (hereinafter referred to as
“the Fund”).
The purpose of this letter is to provide prospective unit holders with an overview of the impact of taxation on
the Fund and the unit holders.
Taxation of the Fund
The Fund has been granted income tax exemption pursuant to Section 127(3A) of the Malaysian Income Tax
Act, 1967 (“MITA”).
In addition, any distribution made by PNB Real Investment Trust Fund to the Fund is exempted from
withholding tax pursuant to Section 127(3A) of the MITA.
Gain from the realisation of investments
Pursuant to Section 61(1) (b) of the MITA, gains from the realisation of investments will not be treated as
income of the Fund and hence, are not subject to income tax. Such gains may be subject to real property gains
tax ("RPGT") under the Real Property Gains Tax Act, 1976 (“RPGT Act”), if the gains are derived from the sale of
chargeable assets, as defined in the RPGT Act. Any chargeable gain on the disposal of chargeable assets from 1
January 2010 onwards would be subject to RPGT at the applicable tax rate depending on the holding period.
However, under the Real Property Gains Tax (Exemption) (No.2) Order 2009, Funds can enjoy a full exemption
from RPGT on disposals of chargeable assets held more than 5 years and an effective tax rate of 5% for all
disposals of chargeable assets which are held for 5 years or less.
Taxation of unit holders
Non-taxable and exempt distributions
Tax exempt distributions made out of gains from the realisation of investments and other exempt income
earned by the Fund will not be subject to Malaysian income tax in the hands of the unit holders.
Non-resident unit holders may be subject to tax in their respective countries depending on the provisions of
the tax legislation in the respective countries and any existing double taxation arrangements with Malaysia.
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Gains from sale of units
Gains arising from the realisation of investments will not be subject to income tax in the hands of unit holders
unless they are insurance companies, financial institutions or traders/ dealers in securities.
Unit splits and reinvestment of distributions
Unit holders may also receive new units as a result of unit splits or may choose to reinvest their distributions.
The income tax implications of these are as follows:
Unit splits – new units issued by the Funds pursuant to a unit split will not be subject to income tax in the
hands of the unit holders.
Reinvestment of distributions – unit holders may choose to reinvest their income distribution in new units
by informing the Manager. In this event, the unit holder will be deemed to have received the distribution
and reinvested it with the Funds.
**********************************************
We hereby confirm that, as at the date of this letter, the statements made in this report correctly reflect our
understanding of the tax position under current Malaysian tax legislation and the related interpretation and
practice thereof, all of which are subject to change, possibly on a retrospective basis. We have not been
retained (unless specifically instructed hereafter), nor are we obligated to monitor or update the statements
for future conditions that may affect these statements.
The statements made in this letter are not intended to be a complete analysis of the tax consequences relating
to an investor in the Fund. As the particular circumstances of each investor may differ, we recommend that
investors obtain independent advice on the tax issues associated with an investment in the Fund.
Yours faithfully
Ernst & Young Tax Consultants Sdn Bhd
Noor Rida Hamzah
Partner
Ernst & Young Tax Consultants Sdn. Bhd. has given its consent to the inclusion of the Taxation Adviser’s Letter
in the form and context in which it appears in this Prospectus and has not withdrawn such consent prior to the
delivery of a copy of this Prospectus for approval.
AMB Client Services 03-2034 0800
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Master Prospectus 2011/2012
TAXATION ADVISOR’S LETTER ON
TAXATION OF THE TRUST AND UNIT HOLDERS
(Prepared for inclusion in this Prospectus)
22 June 2011
PricewaterhouseCoopers Taxation Services Sdn Bhd
Level 10, 1 Sentral, Jalan Travers
Kuala Lumpur Sentral
P.O.Box 10192
50706 Kuala Lumpur
The Board of Directors
Amanah Mutual Berhad
34th Floor, Menara PNB
201-A, Jalan Tun Razak
50400 Kuala Lumpur
TAXATION OF THE TRUSTS OFFERED UNDER THE MASTER PROSPECTUS AND UNITHOLDERS
Dear Sirs,
This letter has been prepared for inclusion in the Master Prospectus to be dated 17 September 2011 to 16
September 2012 in connection with the offer of units in AMB Unit Trust Fund, AMB Income Trust Fund, AMB
Balanced Trust Fund and AMB Dana Yakin (“the Trusts”).
The taxation of income for both the Trusts and the Unitholders are subject to the provisions of the Malaysian
Income Tax Act, 1967 (“the Act”). The applicable provisions are contained in Section 61 of the Act, which deals
specifically with the taxation of Trust bodies in Malaysia.
TAXATION OF THE TRUSTS
The Trusts will be regarded as resident for Malaysian tax purposes since the Trustees of the Trusts are resident
in Malaysia.
(1) Domestic Investments
(i) General taxation
The income of the Trusts consisting of interest (other than interest which is exempt from tax) and other
investment income derived from or accruing in Malaysia, after deducting tax allowable expenses, is liable
to Malaysian income tax at the rate of 25 per cent.
Gains on disposal of investments by the Trustswill not be subject to income tax.
(ii) Tax Credit
With effect from 1 January 2008, Malaysia introduced the single tier system where dividends paid by
companies would not be taxable. However, during the transitional period from 1 January 2008 to 31
December 2013, companies may still continue to be under the imputation system where dividends paid are
taxed at source and tax credits available to recipients.
Dividends received from companies that are under the single tier system would be exempted from tax and
the expenses incurred on such dividends would be disregarded. There will no longer be any tax refunds
available for single tier dividends received.
Dividends received by the Trusts would have suffered tax deduction at source at 25 per cent, unless specific
exemptions apply e.g. pioneer dividends. No further tax will be payable by the Trust on the dividends.
However, such tax or part thereof will be refundable to the Trusts if the total tax so deducted at source
exceeds the tax liability of the Trusts.
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(iii) Exempt Income
The Trusts may receive Malaysian dividends which are tax exempt. The exempt dividends may be received
from investments in companies which had previously enjoyed or are currently enjoying the various tax
incentives provided under the law. The Trust will not be taxable on such exempt income.
With effect from 1 January 2008, dividends received from companies under the single tier system would
also be exempted.
Interest income / profit1 or discount income derived from the following investments are exempt from tax:
(a) Securities or bonds issued or guaranteed by the Government;
(b) Debentures, other than convertible loan stocks, approved by the Securities Commission; and
(c) Bon Simpanan Malaysia issued by Bank Negara Malaysia.
As such, provided the investment in other financial instruments is seen to be “debentures” under Capital
Markets and Services Act 2007, the income received will be exempted. Otherwise, tax implications could
arise.
Interest income derived from the following investments is exempt from tax:
(a) Interest paid or credited by any bank or financial institution licensed under the Banking and Financial
Institutions Act 1989 or the Islamic Banking Act 1983; and
(b) Bonds, other than convertible loan stocks, paid or credited by any company listed in Malaysia Exchange
of Securities Dealing and Automated Quotation Berhad (“MESDAQ”).
The interest income or discount exempted from tax at the Trusts level will also be exempted from tax upon
distribution to the Unitholders.
(2) Tax Allowable Expenses
Expenses wholly and exclusively incurred in the production of gross income are allowable as deductions under
Section 33(1) of the Act. In addition, Section 63B of the Act provides for tax deduction in respect of managers’
remuneration, expenses on maintenance of the register of Unitholders, share registration expenses,
secretarial, audit and accounting fees, telephone charges, printing and stationery costs and postages based on
a formula subject to a minimum of 10 per cent and a maximum of 25 per cent of the expenses.
(3) Real Property Gains Tax
With effect from 1 January 2010, Real Property Gains Tax of 5% will be applicable on gains on disposal of
2
investments representing shares in real property companies where the disposal is within 5 years of
ownership.
_________________________
1
Section 2(7) of the Malaysian Income Tax Act 1967, provides that any reference to interest shall apply equally to gains or
profits received and expenses incurred, in lieu of interest, in transactions conducted in accordance with the principles of
Shariah. The effect of this is that any gains or profits received and expenses incurred, in lieu of interest, in transactions
conducted in accordance with the principles of Shariah will be accorded the same tax treatment as if they were interest.
2
A real property company is a controlled company which owns or acquires real property or shares in real property
companies with a market value of not less than 75 per cent of its total tangible assets. A controlled company is a
company which does not have more than 50 members and is controlled by not more than 5 persons.
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TAXATION OF UNITHOLDERS
Unitholders will be taxed on an amount equivalent to their share of the total taxable income of the Trusts to
the extent of the distributions received from the Trusts. The income distribution from the Trusts will carry a tax
credit in respect of the tax paid by the Trusts. Unitholders will be entitled to utilise the tax credit against the
tax payable on the income distribution received by them. No additional withholding tax will be imposed on the
income distribution from the Trusts.
3
Corporate Unitholders, resident and non-resident, will generally be liable to income tax at 25 per cent on
distribution of income received from the Trusts. The tax credits attributable to the distribution of income can
be utilised against the tax liabilities of these Unitholders.
Individuals and other non-corporate Unitholders who are tax resident in Malaysia will be subject to income tax
at graduated rates ranging from 1 per cent to 26 per cent. Individuals and other noncorporate Unitholders who
are not resident in Malaysia will be subject to income tax at 26 per cent. The tax credits attributable to the
distribution of income will be utilised against the tax liabilities of these Unitholders.
Non-resident Unitholders may also be subject to tax in their respective jurisdictions and depending on the
provisions of the relevant tax legislation and any double tax treaty with Malaysia, the Malaysian tax suffered
may be creditable in the foreign tax jurisdictions.
The distribution of exempt income and gains arising from the disposal of investments by the Trusts will be
exempted from tax in the hands of the Unitholders.
Any gains realised by Unitholders (other than those in the business of dealing in securities, insurance
companies or financial institutions) on the sale or redemption of the units are treated as capital gains and will
not be subject to income tax. This tax treatment will include gains in the form of cash or residual distribution in
the event of the winding up of the Trusts.
Unitholders electing to receive their income distribution by way of investment in the form of new units will be
regarded as having purchased the new units out of their income distribution after tax. Unit splits issued by the
Trusts are not taxable in the hands of Unitholders.
______________________________________
3
Resident companies with paid up capital in respect of ordinary shares of RM2.5 million and below will pay tax at 20 per
cent for the first RM500,000 of chargeable income with the balance taxed at 25 per cent. Under the Finance Act 2009,
with effect from year of assessment 2009, the above shall not apply if more than:–
(a) 50 per cent of the paid up capital in respect of ordinary shares of the company is directly or indirectly owned by a
related company;
(b) 50 per cent of the paid up capital in respect of ordinary shares of the related company is directly or indirectly owned
by the first mentioned company;
(c) 50 per cent of the paid up capital in respect of ordinary shares of the first mentioned company and the related
company is directly or indirectly owned by another company.
“Related company” means a company which has a paid up capital in respect of ordinary shares of more than RM2.5
million at the beginning of the basis period for a year of assessment.
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We hereby confirm that the statements made in this report correctly reflect our understanding of the tax
position under current Malaysian tax legislation. Our comments above are general in nature and cover
taxation in the context of Malaysian tax legislation only and do not cover foreign tax legislation. The comments
do not represent specific tax advice to any investors and we recommend that investors obtain independent
advice on the tax issues associated with their investments in the Trusts.
Yours faithfully,
for and on behalf of
PRICEWATERHOUSECOOPERS TAXATION SERVICES SDN BHD
Jennifer Chang
Senior Executive Director
PricewaterhouseCoopers Taxation Services Sdn Bhd have given their written consent to the inclusion of their
report as Taxation Adviser in the form and context in which it appears in this Master Prospectus and have not
withdrawn such consent prior to the delivery of a copy of this Master Prospectus for approval.
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17 Consents
The consents of the Trustees and its delegates, the Principal Banker, the Solicitors, the External Investment
Managers, DBMB, PHNB, and the Tax Advisors for the inclusion of their names in the form and context in
which such names appear in this Master Prospectus have been given before the issue of this Master
Prospectus and have not been subsequently withdrawn.
Ernst & Young Tax Consultants Sdn Bhd and PricewaterhouseCoopers Taxation Services Sdn Bhd have given
their written consents to the inclusion of their report as Taxation Advisors in the form and context in which
they appear in this Master Prospectus and have not withdrawn such consents prior to the lodgement of a copy
of this Master Prospectus for registration.
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18 Documents Available for Inspection
For a period of not less than 12 months from the date of issuance of this Master Prospectus, the following
documents or copies thereof, where applicable, may be inspected, at the principal office of the Manager and
the Trustee, without charge: (i)
The Deeds;
(ii)
Each material contract referred to in the Master Prospectus;
(iii)
The latest annual and interim reports of the Funds;
(iv)
All reports, letters or other documents, valuations and statements by any expert, any part of which is
extracted or referred to in the Master Prospectus;
(v)
The audited financial statements of the Manager and the Funds for the current financial year (where
applicable);
(vi)
The audited financial statements of the Manager and the Funds for the last 3 financial years or from
the date of incorporation/commencement, if less than 3 years, preceding the date of Master
Prospectus; and
(vii)
All consents given by experts or persons whose statements appear in the Master Prospectus.
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19 List of Distribution Channels
Distribution Channels appointed by the Manager:
MALAYAN BANKING BERHAD
(All AMB’s Funds)
st
1 Floor Menara Maybank
100 Jalan Tun Perak 50050
Kuala Lumpur.
Maybank Group Call Centre : 1-300-88-6688
Website : www.maybank2u.com.my
BANK KERJASAMA RAKYAT MALAYSIA BERHAD
(Only for AMBDY, AMBDI and AMBDA)
Financial Planning Services
th
15 Floor, Bangunan Perkim
No. 150, Jalan Ipoh
51200 Kuala Lumpur
Tel : 03-40272538
Tele-Rakyat : 1-300-88-12265
AMANAH SAHAM NASIONAL BERHAD
(Only PNB SIF, AMBETF & AMBDN)
Jabatan Perhubungan Pelanggan & Ejen
UG Balai PNB
201-A Jalan Tun Razak
50400 Kuala Lumpur
Hotline : 03-2057 3000 / 03-20573111
Fax : 03-2050 5220
Website : www.asnb.com.my
Email : asnbcare@pnb.com.my
APEX INVESTMENT SERVICES BERHAD
(All AMB’s Funds excluding bond funds)
Suite 10-A3, 10A Floor
Grand Seasons Avenue
72 Jalan Pahang
53000 Kuala Lumpur
Tel : (603)-2693 2789
Fax : (603)-2692 6546
Any other appointed IUTAs from time to time.
LIST OF OFFICES
ASNB OFFICES
KUALA LUMPUR
ASNB Main Counter
First Floor, Balai PNB
201-A Jalan Tun Razak
Tel : 03-2050 5500
Fax: 03-2161 8852
SELANGOR
Amanah Saham Nasional Berhad
Lot 2-1 & 2-2
Pusat Dagangan UMNO Shah Alam
Persiaran Damai Seksyen 11
40000 Shah Alam
Selangor
Tel : 03-5512 1366 / 5510 3155
Fax: 03-5513 7155
PUTRAJAYA
Amanah Saham Nasional Berhad
Lot 27 Kompleks Perbadanan Putrajaya
Persiaran Perdana, Presint 3
62675 Putrajaya
Selangor
Tel : 03-8890 4880
Fax: 03-8890 4890
Amanah Saham Nasional Berhad
No.7, Jalan Medan Niaga 2
Medan Niaga Kuala Selangor
45000 Kuala Selangor
Selangor
Telefon : 03-3289 4121 / 03-3281 4121
Faks : 03-3281 3221
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PERLIS
Amanah Saham Nasional Berhad
Lot 7 Jalan Indera Kayangan
01000 Kangar
Perlis
Tel: 04-978 1110 / 978 1111 / 977 5702
Fax: 04-976 0800
NEGERI SEMBILAN
Amanah saham Nasional Berhad
36 Jalan Tunku Hassan
70000 Seremban
Negeri Sembilan
Tel: 06-762 6239 /763 8546 / 761 8451
Fax: 06-763 3384
JOHOR
Amanah Saham Nasional Berhad
49 Bangunan Tabung Haji
Jalan Segget
80000 Johor Bahru
Johor
Tel: 07-224 0077 / 227 2277
Fax: 07-223 2533
Amanah Saham Nasional Berhad
No 12, Jalan Maju
Taman Maju
83000 Batu Pahat
Johor
Telefon : 07-4331 709/ 07- 4331 700/ 07- 4331 701
Faks: 07-4331 712
PAHANG
Amanah Saham Nasional Berhad
71 & 73 Tingkat Bawah
Jalan Tun Ismail
25000 Kuantan
Pahang
Tel: 09-517 8340 / 517 8341
Fax: 09-513 6694
MELAKA
Amanah Saham Nasional Berhad
No 11 & 13 Kompleks Perniagaan Al Azim
Jalan KPAA 1 Bukit Baru
75150 Melaka
Tel: 06-282 7361 / 284 0690
Fax: 06-283 9940
PULAU PINANG
Amanah Saham Nasional Berhad
2777 Jalan Chain Ferry
Taman Inderawasih
13600 Perai
Pulau Pinang
Tel: 04-399 4378 / 399 4381
Fax: 04-399 4404
PERAK
Amanah Saham Nasional Berhad
No 8 & 8A Persiaran Greentown 1
Greentown Business Centre
30450 Ipoh
Perak
Tel: 05-255 5500 / 255 5505
Fax: 05-255 5506
Amanah Saham Nasional Berhad
A-12A-1 Lorong Bayan Indah 4
11900 Bayan Lepas
Pulau Pinang
Telefon : 04-6406522 / 04-6406523
Faks : 04-6406520
Amanah Saham Nasional Berhad
No.273 , Jalan Intan 12
Bandar Baru Teluk Intan
36000 Teluk Intan
Perak
Telefon : 05-621 5153 / 05-621 5163
Faks : 05-621 5150
KELANTAN
Amanah Saham Nasional Berhad
2983-V Jalan Parit Dalam
15000 Kota Bharu
Kelantan
Tel: 09-741 9900 / 741 9909
Fax: 09-744 6663
KEDAH
Amanah Saham Nasional Berhad
27 Kompleks Shahab Perdana
Jalan Sultanah Sambungan
05200 Alor Star
Kedah
Tel: 04-731 0770 / 731 1012 / 733 4603
Fax: 04-731 4140
TERENGGANU
Amanah Saham Nasional Berhad
No 15 Jalan Batas Batu
20300 Kuala Terengganu
Terengganu
Tel: 09-630 1500 / 630 1501
Fax: 09-630 1506
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Master Prospectus 2011/2012
SABAH
Amanah Saham Nasional Berhad*
Tkt Bawah & 1 Blok G Lot 55
Asiacity Phase 1B
Peti Surat 12149
88000 Kota Kinabalu
Sabah
Tel: 088-257 725 / 241 011
Fax: 088-218 814
SARAWAK
Amanah Saham Nasional Berhad
Tingkat Bawah & 1
Lot 335 Seksyen 9 KTLD
Jalan Rubber
93400 Kuching
Sarawak
Tel: 082-250 389 / 410 210
Fax: 082-250 313
Amanah Saham Nasional Berhad
TB 4287 & TB 4280
Tkt Bawah & 1 Town Ext II
Jalan Masjid Kompleks Fajar
91000 Tawau
Sabah
Tel: 089-779 389 / 779 390 / 779 391
Fax: 089-776 600
Amanah Saham Nasional Berhad
Lot 886 Block 9
MCLD Miri Waterfront
Commercial Centre
98000 Miri
Sarawak
Tel: 085-423 746 / 419 984
Fax: 085-423 384
Amanah Saham Nasional Berhad
Lot 15 Tingkat Bawah
Bandar Pasaraya Fasa 1
90000 Sandakan
Sabah
Tel: 089-210 486 / 223 530
Fax: 089-210 597
Amanah Saham Nasional Berhad
4C Ground Floor
Lot 832 Jalan Sabu
95000 Sri Aman
Sarawak
Tel: 083-321 742
Fax: 083-323 233
Amanah Saham Nasional Berhad
Lot 1007 & 1008
Jalan Kampung Nyabor
96000 Sibu
Sarawak
Tel: 084-314 967
Fax: 084-322 497
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PRE-INVESTMENT FORM
ATTENTION UNIT TRUST INVESTORS
IMPORTANT!
Your Unit Trust Consultant (UTC) is
required to explain all of the following to
you
5) Your UTC may represent a company that
uses a nominee system and your rights
as a unit holder may be limited if you
invest in unit trust funds through it. If his
or her company uses a nominee system,
ask if your rights as a unit holder will be
limited in any way.
You Should Also Know
Signing this form does not preclude you from taking action
against relevant party/parties under any circumstances.
Do You Know?
1) You can buy unit trusts either through a
Unit Trust Consultant (UTC), Institutional
Unit Trust Advisers (IUTA), Corporate
Unit Trust Advisers (CUTA) or directly
from Unit Trust Management Company
(UTMC) or online, but each has different
sales charge and level of service.
Choose the one that best suits your
needs.
2) If you redeem your units in a unit trust
fund and then purchase units in another,
you will probably have to pay a sales
charge. However, if you switch from one
fund to another managed by the same
UTMC, it is likely that you may not have
to pay any sales charge. Ask about
switching before you redeem.
3) Different types of unit trust funds carry
different levels of risk. Some are higher
in risk than others. Ask about the risks
before investing in a fund. Make sure you
know what your fund is investing in.
4) If you are a first time investor in a UTMC,
you may be eligible for cooling-off rights,
whereby you can change your mind
within six (6) business days after
investing and withdraw your unit trust
investment. Ask about your eligibility for
cooling-off.
Yes(√)/
No(X)
a) Only registered UTCs are allowed to sell unit
trust funds. Your UTC should show you a valid
authorisation card confirming that he/she is
registered with the Federation of Investment
Managers Malaysia (FIMM).
Investor’s Confirmation
I/We confirm that the UTC has explained all the points
overleaf to me/us.
1) Applicant
Signature : _______________________________
Name
: _______________________________
NRIC/Identification Number/Passport No.:
________________________________________
Date
:_______________________________
2) Joint Applicant (If applicable)
b) A unit trust fund may only be offered to the
public if it is approved by the Securities
Commission
Malaysia
(SC).
Go
to
www.sc.com.my for a list of unit trust funds
currently available in the market or call 603-6204
8777 for assistance.
Signature :_______________________________
Name
:_______________________________
NRIC/Identification Number/Passport No.:
_______________________________________
c) When you buy into a unit trust fund, you should
be given the latest copy of prospectus for free.
Read the prospectus carefully; understand its
contents before investing.
d) You may have to pay direct and indirect fees and
possibly other charges too. Ask about applicable
fees.
e) If you have concerns or complaints about any
unit trust fund, you can contact FIMM at 6032092 3800 (www.fimm.com.my) or the Investor
Affairs & Complaints Department of the SC at
603-6204 8999.
f)
You should not make payment in cash to the
UTC or issue a cheque in the name of UTC.
Date
:_______________________________
Unit Trust Consultant’s Declaration
I declare that I have explained the points overleaf and
the investor(s) understand(s) them.
Signature :_______________________________
Name
:_______________________________
NRIC/Identification Number/Passport No.:
________________________________________
Registered as UTC of UTMC/IUTA/CUTA^:
________________________________________
^Delete where not applicable.
Note: This form is required for investments in a new fund by
INDIVIDUAL investors (excluding additional investment/top ups),
th
including switching-in to new funds after 15 February 2010.
PRE-INVESTMENT FORM
ATTENTION UNIT TRUST INVESTORS
IMPORTANT!
Your Unit Trust Consultant (UTC) is
required to explain all of the following to
you
5) Your UTC may represent a company that
uses a nominee system and your rights
as a unit holder may be limited if you
invest in unit trust funds through it. If his
or her company uses a nominee system,
ask if your rights as a unit holder will be
limited in any way.
You Should Also Know
Signing this form does not preclude you from taking action
against relevant party/parties under any circumstances.
Do You Know?
1) You can buy unit trusts either through a
Unit Trust Consultant (UTC), Institutional
Unit Trust Advisers (IUTA), Corporate
Unit Trust Advisers (CUTA) or directly
from Unit Trust Management Company
(UTMC) or online, but each has different
sales charge and level of service.
Choose the one that best suits your
needs.
2) If you redeem your units in a unit trust
fund and then purchase units in another,
you will probably have to pay a sales
charge. However, if you switch from one
fund to another managed by the same
UTMC, it is likely that you may not have
to pay any sales charge. Ask about
switching before you redeem.
3) Different types of unit trust funds carry
different levels of risk. Some are higher
in risk than others. Ask about the risks
before investing in a fund. Make sure you
know what your fund is investing in.
4) If you are a first time investor in a UTMC,
you may be eligible for cooling-off rights,
whereby you can change your mind
within six (6) business days after
investing and withdraw your unit trust
investment. Ask about your eligibility for
cooling-off.
Yes(√)/
No(X)
a) Only registered UTCs are allowed to sell unit
trust funds. Your UTC should show you a valid
authorisation card confirming that he/she is
registered with the Federation of Investment
Managers Malaysia (FIMM).
Investor’s Confirmation
I/We confirm that the UTC has explained all the points
overleaf to me/us.
1) Applicant
Signature : _______________________________
Name
: _______________________________
NRIC/Identification Number/Passport No.:
________________________________________
Date
:_______________________________
2) Joint Applicant (If applicable)
b) A unit trust fund may only be offered to the
public if it is approved by the Securities
Commission
Malaysia
(SC).
Go
to
www.sc.com.my for a list of unit trust funds
currently available in the market or call 603-6204
8777 for assistance.
Signature :_______________________________
Name
:_______________________________
NRIC/Identification Number/Passport No.:
_______________________________________
c) When you buy into a unit trust fund, you should
be given the latest copy of prospectus for free.
Read the prospectus carefully; understand its
contents before investing.
d) You may have to pay direct and indirect fees and
possibly other charges too. Ask about applicable
fees.
e) If you have concerns or complaints about any
unit trust fund, you can contact FIMM at 6032092 3800 (www.fimm.com.my) or the Investor
Affairs & Complaints Department of the SC at
603-6204 8999.
f)
You should not make payment in cash to the
UTC or issue a cheque in the name of UTC.
Date
:_______________________________
Unit Trust Consultant’s Declaration
I declare that I have explained the points overleaf and
the investor(s) understand(s) them.
Signature :_______________________________
Name
:_______________________________
NRIC/Identification Number/Passport No.:
________________________________________
Registered as UTC of UTMC/IUTA/CUTA^:
________________________________________
^Delete where not applicable.
Note: This form is required for investments in a new fund by
INDIVIDUAL investors (excluding additional investment/top ups),
th
including switching-in to new funds after 15 February 2010.
34th Floor, Menara PNB, 201-A, Jalan Tun Razak, 50400 Kuala Lumpur.
AMB Client Services Tel • +603 - 2034 0800 Fax • +603 - 2163 3212/2535
E-mail • ambcare@pnb.com.my
www.ambmutual.com.my