Incorporating nine investment choices:
PACIFIC PREMIER FUND
PACIFIC PEARL FUND
PACIFIC DANA AMAN
PACIFIC MILLENNIUM FUND
PACIFIC RECOVERY FUND
PACIFIC INCOME FUND
PACIFIC PROGRESSIVE FUND
PACIFIC DANA MURNI
PACIFIC DANA KLSI
MASTER PR
SPECTUS
MANAGER :
PACIFIC MUTUAL FUND BHD (336059-U)
a company incorporated in Malaysia under the Companies Act 1965
TRUSTEES :
UNIVERSAL TRUSTEE (MALAYSIA) BERHAD (17540-D)
AMTRUSTEE BERHAD (163032-V)
BUMIPUTRA-COMMERCE TRUSTEE BERHAD (167913-M)
BHLB TRUSTEE BERHAD (313031-A)
Investors are advised to read and understand the contents of the
Prospectus. If in doubt, please consult a professional adviser.
This Master Prospectus is dated 15 November 2003 and
expires on 14 November 2004.
I n t r o d u c i n g
A World of
UNIT TRUST
INVESTMENT
Opportunities
WELCOME TO PACIFIC MUTUAL FUND BHD
We hope you will find this Master Prospectus informative, easy to
read and useful in helping you make smart investment decisions.
If you have any queries about the information in this Master
Prospectus or would like to know more about investing in our Funds,
please feel free to contact our Customer Care personnel at
03-7725 9877, e-mail customercare@pacificmutual.com.my.
Alternatively, you may contact our authorised intermediaries
or branches.
(Please refer to full contact details on pages 122 and 123.)
(i)
RESPONSIBILITY STATEMENT
This Prospectus has been seen and approved by the directors of the Management Company of the unit trust funds and
they collectively and individually accept full responsibility for the accuracy of all information contained herein and
confirm, having made all enquiries which are reasonable in the circumstances, that to the best of their knowledge and
belief, there are no other facts the omission of which would make any statement herein misleading.
STATEMENT OF DISCLAIMER
A copy of this Prospectus has been registered by, and lodged with, the Securities Commission.
The Securities Commission has approved the issue, offer or invitation in respect of the unit trust funds the subject of this
Prospectus, and that the approval shall not be taken to indicate that the Securities Commission recommends the
investment.
The Securities Commission shall not be liable for any non-disclosure on the part of the Management Company and takes
no responsibility for the contents of the Prospectus, makes no representation as to its accuracy or completeness and
expressly disclaims any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part
of the contents of this Prospectus.
INVESTORS SHOULD RELY ON THEIR OWN EVALUATION TO ASSESS THE MERITS AND RISKS OF THE INVESTMENT. IN
CONSIDERING THE INVESTMENT, INVESTORS WHO ARE IN DOUBT AS TO THE ACTION TO BE TAKEN SHOULD CONSULT
THEIR PROFESSIONAL ADVISERS IMMEDIATELY.
This Prospectus is a concise statement of information about the Funds that is relevant to making investments in the Funds.
This Prospectus should be retained for future reference.
DOCUMENTS AVAILABLE FOR INSPECTION
For a period of not less than 12 months, the following documents or copies thereof, where applicable, may be inspected
at the registered office of the Management Company and the Trustee, without charge:
• The Deeds of the Funds;
• Each material contract or document referred to in the Prospectus;
• The latest annual and interim reports of the Funds;
• All reports, letters or other documents, valuations and statements by any expert, any part of which is extracted or
referred to in the Prospectus;
• The audited accounts of the Management Company and the Funds for the last five financial years or from the date of
incorporation/commencement, or if less than five years, preceding the date of Prospectus;
• The audited accounts of the Management Company and the Funds for the current financial year (where applicable);
and
• Any consent given by experts or persons whose statement appears in the Prospectus.
No units will be issued or sold on the basis of this Prospectus later than one year after the date of this Prospectus.
(ii)
DEFINITIONS
In this Prospectus, except where the context otherwise requires, the following words and expressions shall bear the
meanings given to them below:
Business Day
A day on which the KLSE is open for dealing.
Deed
The deeds and all supplemental deeds entered into between the Manager and the
Trustees for the unitholders of the Funds.
Eligible Market
A market that is regulated by a regulatory authority within Malaysia, operates
regularly, open to the public and has adequate liquidity for the purposes of the Funds.
It includes but is not limited to a stock exchange approved and an exempt stock market
declared by the Minister under the Securities Industry Act 1983; a futures market of an
exchange company approved and exempt futures market declared by the Minister
under the Futures Industry Act 1993; the money market; and the over-the-counter
private debt securities market.
Fund
A fund managed by the Management Company.
Funds
For the purpose of this Prospectus, unless the context otherwise requires, Funds mean
all funds managed by the Management Company except Pacific SELECT Balance Fund
and Pacific SELECT Income Fund.
Guidelines or SC Guidelines
Guidelines on Unit Trust Funds issued by the Securities Commission. This includes any
amendments or reissue.
KLSE
Management Expense Ratio
(MER)
The Kuala Lumpur Stock Exchange.
Total expenses incurred by the Fund for the year
Average Net Asset Value of the Fund
x
100
This ratio will inform the investor of the total expenses incurred by the Fund during the
year. This includes management fee, trustee fee and expenses incurred for fund
administrative services. A low MER indicates the effectiveness of the Manager in
managing the expenses of the Fund.
Manager/Company/
Management Company
Pacific Mutual Fund Bhd (336059-U) or, in short, Pacific Mutual
Net Asset Value (NAV)
Net Asset Value (NAV) of the respective Fund is determined by deducting the value of
all the Fund’s liabilities from the value of 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 the trustee fee for the
relevant day.
Net Asset Value (NAV) Per Unit
Net Asset Value per unit of the Fund is determined by dividing the Fund’s NAV by the
number of units in issue.
Portfolio Turnover Ratio
(PTR)
(Total acquisitions and disposals of investment for the year) / 2
Average Net Asset Value of the Fund
The portfolio turnover ratio will inform the investor whether the Fund buys and
sells securities frequently or whether it takes a longer view in its investment
strategy. A portfolio turnover rate of one means that the average holding period of
securities purchases is one year. A high PTR indicates that the Fund buys and sells
securities very often.
Prospectus
Short Term/Medium Term/Long Term
Prospectus in relation to the Funds managed by Pacific Mutual.
Short term – below one year; medium term – above one year to three years; long term
– above three years.
(iii)
Syariah-Based Funds
Trustees
Pacific Dana Aman, Pacific Dana Murni and Pacific Dana KLSI.
Universal Trustee (Malaysia) Berhad (17540-D) – for Pacific Premier Fund
AmTrustee Berhad (163032-V) – for Pacific Pearl Fund, Pacific Dana Murni and Pacific
Dana KLSI
Bumiputra-Commerce Trustee Berhad (167913-M) – for Pacific Dana Aman
BHLB Trustee Berhad (313031-A) – for Pacific Millennium Fund, Pacific Recovery Fund,
Pacific Income Fund and Pacific Progressive Fund
Unitholder
The person registered for the time being as a holder of units in the Fund including
persons jointly registered in accordance with the provisions of the Deed.
(iv)
CORPORATE DIRECTORY
Manager
Registered Office
Business Office
Board Of Directors
Audit Committee
Members Of Investment Committee
Pacific Mutual Fund Bhd (336059-U)
Level 18, Menara Prudential,
No. 10, Jalan Sultan Ismail,
50250 Kuala Lumpur
Tel: 03-2176 1000
1001, Level 10, Uptown 1,
No. 1 Jalan SS21/58, Damansara Uptown,
47400 Petaling Jaya, Selangor Darul Ehsan
Tel: 03-7725 9877 Fax : 03-7725 9860
E-mail: customercare@pacificmutual.com.my
Website: www.pacificmutual.com.my
Choi Siew Hong (Chairman)
Tan Sri Dato’ Wong Kum Choon
Dato’ Haji Mustafa bin Mohamad Ali *
Datuk Fong Weng Phak
Dr Neoh Soon Kean *
Mak Tian Meng *
Mej (B) Bibi Zarjaan binti Akhbar Khan
Dato’ Haji Mustafa bin Mohamad Ali (Chairman)
Datuk Fong Weng Phak
Mak Tian Meng
Choi Siew Hong
Tan Sri Dato’ Wong Kum Choon
Dato’ Haji Mustafa bin Mohamad Ali **
Datuk Fong Weng Phak
Dr Neoh Soon Kean **
Mak Tian Meng **
Dr Obiyathulla Ismath Bacha ** (for Pacific Dana Aman, Pacific Dana Murni and Pacific Dana
KLSI only)
Dr Mohd Daud Bakar **
Trustees
(for Pacific Dana Aman, Pacific Dana Murni and Pacific Dana KLSI only)
Universal Trustee (Malaysia) Berhad (17540-D) - for Pacific Premier Fund
No. 1, Jalan Ampang (3rd Floor), 50450 Kuala Lumpur
Tel: 03-2070 8050
E-mail: www.utmb@po.jaring.my
AmTrustee Berhad (163032-V) - for Pacific Pearl Fund, Pacific Dana Murni and Pacific Dana KLSI
22nd Floor, Bangunan AmBank Group,
55 Jalan Raja Chulan, 50200 Kuala Lumpur
Tel: 03-2078 2633
Website: www.ambg.com.my
Bumiputra-Commerce Trustee Berhad (167913-M)
D-0-6, Megan Phileo Promenade,
189, Jalan Tun Razak, 50400 Kuala Lumpur
Tel: 03-2161 2382
E-mail: ibhi@bctrustee.com
Website: www.bctrustee.com
BHLB Trustee Berhad (313031-A)
- for Pacific Millennium Fund, Pacific Recovery Fund, Pacific
Income Fund and Pacific Progressive Fund
Ground & 1st Floor, Rockwills Centre,
No. 24 Jalan 14/22 Right Angle, Seksyen 14,
46100 Petaling Jaya, Selangor Darul Ehsan
Tel: 03-7958 3637
E-mail: trustcom@tm.net.my
Website: bhlbtrustee.com.my
*
Independent Directors
** Independent Investment Committee members
(v)
- for Pacific Dana Aman
Syariah Advisers
BIMB Securities Sdn Bhd - for Pacific Dana Aman
Tingkat 1 & 2, Blok Podium Bangunan AMBB 1,
Jalan Lumut, 50400 Kuala Lumpur
Tel: 03-4043 3533
E-mail: bimsec@tm.net.my
Islamic Banking and Finance Institute Malaysia Sdn Bhd (340040-M)
Dana Murni and Pacific Dana KLSI
Wisma BIM (Wisma Zelan), No. 1B,
Jalan Tasik Permaisuri 2/106,
Bandar Tun Razak,
56000 Kuala Lumpur
Tel: 03-9172 2175
E-mail: info@ibfim.com
Website: www.ibfim.com
Auditors And Reporting Accountants
Tax Advisers
Company Secretaries
Banker
Ernst & Young
Level 23A, Menara Milenium,
Pusat Bandar Damansara,
50490 Kuala Lumpur
Tel: 03-2087 7000
Website: www.ey.com/my
Ernst & Young Tax Consultants Sdn Bhd (179793-K)
Level 23A, Menara Milenium,
Pusat Bandar Damansara,
50490 Kuala Lumpur
Tel: 03-2087 7000
Website: www.ey.com/my
Phuah Lay Chin (MIA 5579)
Chong Yok Hua (MAICSA 0861045)
Level 18, Menara Prudential,
No. 10 Jalan Sultan Ismail,
50250 Kuala Lumpur
Tel: 03-2176 1000
OCBC Bank (Malaysia) Berhad (295400-W)
(vi)
- for Pacific
CONTENTS
1
Key Information Of The Funds
5
Eight Principles Of Successful Unit Trust Investing
9
All About The Manager - Pacific Mutual Fund Bhd
20
Trustees Of The Funds, Their Duties And Obligations
29
Syariah Advisers
32
More Information About The Funds
•
•
Non-Syariah-Based Funds
■
Why Invest In Pacific Premier Fund?
■
Why Invest In Pacific Pearl Fund?
■
Why Invest In Pacific Millennium Fund?
■
Why Invest In Pacific Recovery Fund?
■
Why Invest In Pacific Income Fund?
■
Why Invest In Pacific Progressive Fund?
Syariah-Based Funds
■
Why Invest in Pacific Dana Aman?
■
Why Invest in Pacific Dana Murni?
■
Why Invest in Pacific Dana KLSI?
Risk Management Strategies And Techniques
Minimum And Maximum Levels Of Asset Allocation
Trading Activities
Bases Of Valuation Of Investments
81
Fees, Charges And Expenses
86
Basic Information On Unit Trust Investment Transactions
•
What Is The Minimum Initial Investment?
•
What Is The Minimum Additional Investment?
•
How Are Unit Prices Calculated?
■
Valuation Of Units
■
Manager’s Selling Price
■
Manager’s Buying Price
•
How And Where Can You Purchase, Redeem And Transfer Your Investment?
•
Will There Be Flexibility For Switching From One Fund To Another?
•
Cooling-Off Period
•
Distributions
90
Getting To Know How Your Funds Work
91
Your Rights As A Unitholder
92
Taxation Adviser’s Letter
96
Financial Information Of The Company
115
Unaudited Interim Financial Statements Of The Funds
117
Directors’ Declaration
117
Consent
118
Master Application Form
122
List Of Pacific Mutual Fund Bhd Offices And Institutional Unit Trust Agents
KEY INFORMATION OF THE FUNDS
Management Company: PACIFIC MUTUAL FUND BHD (336059-U)
Non-Syariah-Based Funds
Pacific Pearl Fund
Pacific Premier Fund
FUND PROFILE
• Fund Category
• Fund Type
• Characteristic
Pacific Millennium Fund
Pacific Recovery Fund
• Equity
• Growth and income
• Fairly aggressive
• Equity (Small cap)
• Growth
• Fairly aggressive
• Equity
• Growth
• Fairly aggressive
• Equity
• Growth
• Aggressive
INVESTORS’ PROFILE
Those seeking current returns
potentially higher than fixed
deposit interest rates and
moderate capital growth over
the medium to long term.
Those seeking high capital
growth of small and mediumsized companies with excellent
growth potential over the
medium to long term.
Those seeking steady capital and
income growth of large companies
whose current prices may fail to
reflect their long-term values
over the medium to long term.
Those seeking high capital
growth over the medium to
long term and willing to accept
a higher degree of risk in
return for potentially higher
investment gains following any
economic downturn, industrywide cyclical downturn or
corporate restructuring exercise.
INVESTMENT OBJECTIVE &
STRATEGY
• Aims to achieve strong longterm capital growth with a
consistently attractive income.
A strategy has been set up to
create a balanced portfolio
of equity securities with
capital growth prospects and
high income yielding and
fixed interest securities.
• Equity allocation: maximum –
80%; minimum – 40%
• Aims to achieve maximum
capital growth over a
medium to long-term period
by investing mainly in small
to medium-sized companies
that have excellent prospects
for growth.
• Equity allocation: maximum –
85%; minimum – 40%
• Aims to achieve long-term
capital growth, with income
as its secondary objective,
by investing mainly in
fundamentally sound large
market
capitalisation
companies and also any other
investments as may be
permitted by the Securities
Commission from time to
time.
• Equity allocation: maximum –
85%; minimum – 40%
• Aims to provide above
average returns in the form
of capital growth over a
medium to long-term period
by investing mainly in cyclical
stocks, stocks that are likely
to be crisis survivors as well as
stocks that are undergoing
restructuring, which may offer
considerable recovery prospects
and also any other investments
as may be permitted by the
Securities Commission from
time to time.
• Equity allocation: maximum –
90%; minimum – 45%
PERMITTED INVESTMENTS
Please refer to page 33.
Please refer to page 39.
Please refer to page 45.
Please refer to page 51.
PRINCIPAL RISKS
• Market risk
• Company specific risk
• Interest rate risk
• Credit risk
• Futures risks
Please see pages 5 to 7.
• Market risk
• Company specific risk
• Interest rate risk
• Credit risk
• Futures risks
Please see pages 5 to 7.
• Market risk
• Company specific risk
• Interest rate risk
• Credit risk
• Futures risks
Please see pages 5 to 7.
• Market risk
• Company specific risk
• Interest rate risk
• Credit risk
• Expectation risk
• Futures risks
Please see pages 5 to 7.
DISTRIBUTION POLICY *
Income distribution, if any, once Income distribution, if any, once Income distribution, if any, once Income distribution, if any, once
a year.
a year.
a year.
a year.
UNIT SPLIT
If any, once a year.
If any, once a year.
If any, once a year.
If any, once a year.
• Universal Trustee (Malaysia)
Berhad (17540-D)
• 30 September
• 10 August 1995
• 500 million units
• 324.53 million units
• AmTrustee Berhad (163032-V)
• BHLB Trustee Berhad
(313031-A)
• 30 June
• 15 April 1999
• 500 million units
• 129.40 million units
• BHLB Trustee Berhad
(313031-A)
• 30 June
• 15 April 1999
• 500 million units
• 243.90 million units
GENERAL INFORMATION
• Trustee
•
•
•
•
Financial Year End
Launch Date
Approved Fund Size
Units In Circulation As At
3 November 2003
•
•
•
•
31 March
6 January 1997
500 million units
360.33 million units
* Income distributions are not guaranteed and may not be repeated. Income distributions may be made more than once in a financial year of the Funds.
1
KEY INFORMATION OF THE FUNDS
Non-Syariah-Based Funds
Pacific Income Fund
Syariah-Based Funds
Pacific Progressive Fund
Pacific Dana Aman
Pacific Dana Murni
Pacific Dana KLSI
• Fixed income/equity
• Income
• Fairly conservative
• Equity (Technology)
• Growth
• Aggressive
• Balanced (Islamic)
• Growth and income
• Fairly aggressive
• Bond (Islamic)
• Income
• Conservative
• Equity index (Islamic)
• Growth and income
• Aggressive
Those seeking a regular income
stream with returns higher than
fixed deposit rates and
moderate capital growth with
reasonable preservation of
capital.
Those seeking high capital
growth over the medium to
long term and willing to accept
a higher degree of risk in return
for potentially higher investment
gains in the technology sector*.
(*Please refer to page 63)
Those seeking above average
income and capital growth over
the medium to long term in
investments which comply with
Syariah principles.
Those seeking steady returns
higher than general investment
accounts
with
reasonable
protection of capital, while
abiding by the Syariah principles.
It is suitable for investors seeking
a regular income stream and
moderate capital growth.
Those seeking capital growth
over the medium to long term,
while abiding by the Syariah
principles, and having a
moderate to high tolerance
level for risks.
• Aims to achieve consistently
attractive and stable income
with reasonable preservation
of capital by investing in a
diversified portfolio of fixed
income securities such as
bonds and money market
instruments as well as stocks
that offer a steady dividend
income stream. The Fund also
aims to provide moderate
capital growth over a medium
to long-term period.
• Equity allocation: maximum –
40%; minimum – 20%
• Fixed income allocation:
minimum – 30%
• Aims to achieve maximum
capital growth and income
over a medium to long-term
period by investing in
securities of companies in
the technology industry that
offer strong growth prospects.
• Equity allocation: maximum –
95%; minimum – 45%
• Aims
to
provide
the
unitholders with consistently
above average returns in
both income and capital
growth over a medium to
long-term period by investing
in a wide portfolio of
authorised securities over
investments which comply
with Syariah principles.
• Equity allocation: maximum –
75%; minimum – 35%
• Islamic debt allocation:
minimum – 10%
• Aims to achieve a stable
income stream with reasonable
protection of capital by
investing in a diversified
portfolio of Islamic debt
securities and other liquid
assets which comply with
Syariah principles. The Fund
may also provide some degree
of capital growth potential
over a medium to long-term
period.
• Islamic debt allocation:
maximum – 95%; minimum –
40%
• Aims to provide medium to
long-term capital growth by
tracking the KLSE Syariah
Index (KLSI).
• Equity allocation: maximum –
95%; minimum – 45%
Please refer to page 57.
Please refer to page 64.
Please refer to page 69.
Please refer to page 75.
Please refer to page 77.
• Interest rate risk
• Credit risk
• Liquidity risk
• Market risk
• Company specific risk
• Futures risks
Please see pages 5 to 7.
• Market risk
• Company specific risk
• Interest rate risk
• Liquidity risk
• Futures risks
• Credit risk
Please see pages 5 to 7.
• Market risk
• Company specific risk
• Interest rate risk
• Credit risk
• Futures risks
Please see pages 5 to 7.
• Market risk
• Company specific risk
• Interest rate risk
• Credit risk
• Futures risks
Please see pages 5 to 7.
• Market risk
• Company specific risk
• Futures risks
Please see pages 5 to 7.
Income distribution, if any, once Income distribution as secondary Income distribution, if any, once Income distribution, if any, once Income distribution, if any, once
a year.
objective, if any, once a year.
a year.
a year.
a year.
–
If any, once a year.
If any, once a year.
–
–
• BHLB Trustee Berhad
(313031-A)
• 30 September
• 18 August 2000
• 500 million units
• 320.80 million units
• BHLB Trustee Berhad
(313031-A)
• 31 December
• 2 January 2001
• 500 million units
• 44.60 million units
• Bumiputra-Commerce
Trustee Berhad (167913-M)
• 31 March
• 16 April 1998
• 1 billion units
• 480.50 million units
• AmTrustee Bhd (163032-V)
• AmTrustee Bhd (163032-V)
•
•
•
•
•
•
•
•
2
KEY INFORMATION OF THE FUNDS
31 March
25 March 2003
500 million units
56.90 million units
31 March
25 March 2003
500 million units
8.50 million units
Non-Syariah-Based Funds
Pacific Premier Fund
Pacific Pearl Fund
Pacific Millennium Fund
Pacific Recovery Fund
• Switching Facility
• Free switching into all Pacific
Mutual’s Funds. Unitholders
who switch out of Pacific
Premier Fund will enter at NAV
per unit of the target Funds.
• Switching into Pacific SELECT
Balance Fund and Pacific
SELECT Income Fund is not
allowed.
• Other terms:
■ Minimum number of units
to be switched out is 1,000;
■ Minimum number of units
left in an account after
partial switching is 500; and
■ Switching into a new Fund
is done three months after
the date of the inaugural
Prospectus of the new Fund.
• Free switching into all
Pacific Mutual’s Funds.
Unitholders who switch
out of Pacific Pearl Fund
will enter at NAV per unit
of the target Funds.
• Switching into Pacific
SELECT Balance Fund and
Pacific SELECT Income
Fund is not allowed.
• Other terms:
■ Minimum
number of
units to be switched out
is 1,000;
■ Minimum
number of
units left in an account
after partial switching is
500; and
■ Switching into a new
Fund is done three
months after the date of
the inaugural Prospectus
of the new Fund.
• Free switching into all Pacific
Mutual’s Funds. Unitholders
who switch out of Pacific
Millennium Fund will enter at
NAV per unit of the target
Funds.
• Switching into Pacific SELECT
Balance Fund and Pacific
SELECT Income Fund is not
allowed.
• Other terms:
■ Minimum number of units
to be switched out is 1,000;
■ Minimum number of units
left in an account after
partial switching is 500; and
■ Switching into a new Fund
is done three months after
the date of the inaugural
Prospectus of the new Fund.
• Free switching into all Pacific
Mutual’s Funds. Unitholders
who switch out of Pacific
Recovery Fund will enter at
NAV per unit of the target
Funds.
• Switching into Pacific SELECT
Balance Fund and Pacific
SELECT Income Fund is not
allowed.
• Other terms:
■ Minimum number of units
to be switched out is 1,000;
■ Minimum number of units
left in an account after
partial switching is 500; and
■ Switching into a new Fund
is done three months after
the date of the inaugural
Prospectus of the new Fund.
• Transfer Facility
Transfer facility (except under
the EPF Members’ Savings
Investment Scheme) is available
for all Funds, free of charge.
Please refer to page 87.
Transfer facility (except under
the EPF Members’ Savings
Investment Scheme) is available
for all Funds, free of charge.
Please refer to page 87.
Transfer facility (except under
the EPF Members’ Savings
Investment Scheme) is available
for all Funds, free of charge.
Please refer to page 87.
Transfer facility (except under
the EPF Members’ Savings
Investment Scheme) is available
for all Funds, free of charge.
Please refer to page 87.
• MER**
• 1.60% (for year ended 30
September 2003)
• 0.97
• Buying Price: RM0.6787
Selling Price: RM0.7254
• Please see page 36.
• 1.65% (for year ended 31
March 2003)
• 0.58
• Buying Price: RM0.7371
Selling Price: RM0.7878
• Please see page 42.
• 1.71% (for year ended 30
June 2003)
• 0.61
• Buying Price : RM0.5615
Selling Price : RM0.6002
• Please see page 48.
• 1.66% (for year ended 30
June 2003)
• 0.71
• Buying Price : RM0.5642
Selling Price : RM0.6030
• Please see page 54.
• PTR**
• Unit Price As At 3 November 2003
• Distribution/Unit Split In The
Last Financial Year
The table below describes the charges that you may incur when you buy, sell or switch units of the Funds:
• Service Charge
• Repurchase Charge
• Switching Fee
• 5.00% - 7.00% of NAV per
unit.
• Nil
• Please refer to page 84.
• 5.00% - 7.00% of NAV per
unit.
• Nil
• Please refer to page 84.
• 5.00% - 7.00% of NAV per
unit.
• Nil
• Please refer to page 84.
• 5.00% - 7.00% of NAV per
unit.
• Nil
• Please refer to page 84.
• 1.50% p.a. of the NAV of the
Fund.
• 0.08% p.a. of the NAV of the
Fund calculated on a daily
basis.
• 1.50% p.a. of the NAV of the
Fund.
• 0.08% p.a. of the NAV of the
Fund calculated on a daily
basis.
The table below describes the fees that you may incur when you invest in the Funds:
• Annual Management Fee
• Annual Trustee Fee
• 1.50% p.a. of the NAV of the
Fund.
• 0.01% - 0.06% p.a of the NAV
of the Fund calculated on a
daily basis (excluding custodian
fee of RM25,000 p.a.).
• 1.50% p.a. of the NAV of the
Fund.
• 0.055% p.a. of the NAV of
the Fund (excluding custodian
fee of 0.035% p.a.) calculated
on a daily basis.
** Refer to definitions page
There are fees and charges involved and investors are advised to consider the fees and charges before investing in the Funds.
STANDARD DETAILS PERTAINING TO INVESTING IN THE FUNDS MANAGED BY PACIFIC MUTUAL (please refer to pages 86 to 89 for more details)
Minimum Initial And Additional Investment For Cash Plan, Saver’s Plan And EPF Plan
Cash Plan:
You may invest by cash on a lump sum basis or through loan financing from approved financial institutions. The initial and subsequent
investment must be a minimum of RM500 and RM100 respectively.
Saver’s Plan:
You may fix your own time frame for saving, starting with a minimum of five years and a monthly investment in multiples of RM50.
You may activate your Saver’s Plan anytime with an initial investment of two times the monthly investment amount.
EPF Plan:
You may invest an amount not less than RM1,000 and not more than 20% of the savings balance exceeding RM50,000 in your EPF
Account I (Retirement Account).
Minimum Redemption Amount
There is no minimum redemption amount.
Redemption Of Units
You can withdraw or redeem all or part of your units in any Fund, in writing, at any time provided the minimum number of units left in an account
after the partial withdrawal is 500.
3
KEY INFORMATION OF THE FUNDS
Non-Syariah-Based Funds
Syariah-Based Funds
Pacific Income Fund
Pacific Progressive Fund
Pacific Dana Aman
Pacific Dana Murni
Pacific Dana KLSI
• Free switching into Pacific
Dana Murni and Pacific Dana
KLSI. Unitholders who switch
out of Pacific Income Fund
will enter at NAV per unit of
these target Funds.
• Switching out of Pacific Income
Fund into all other Pacific
Mutual’s Funds will incur a fee
of 0.50% based on the NAV per
unit of the target Funds.
• Switching into Pacific SELECT
Balance Fund and Pacific SELECT
Income Fund is not allowed.
• Other terms:
■ Minimum number of units
to be switched out is 1,000;
■ Minimum number of units
left in an account after
partial switching is 500; and
■ Switching into a new Fund
is done three months after
the date of the inaugural
Prospectus of the new Fund.
• Free switching into all Pacific
Mutual’s Funds. Unitholders
who switch out of Pacific
Progressive Fund will enter at
NAV per unit of the target
Funds.
• Switching into Pacific SELECT
Balance Fund and Pacific
SELECT Income Fund is not
allowed.
• Other terms:
■ Minimum number of units
to be switched out is 1,000;
■ Minimum number of units
left in an account after
partial switching is 500; and
■ Switching into a new Fund
is done three months after
the date of the inaugural
Prospectus of the new Fund.
• Free switching into all Pacific
Mutual’s Funds. Unitholders
who switch out of Pacific
Dana Aman will enter at NAV
per unit of the target Funds.
• Switching into Pacific SELECT
Balance Fund and Pacific
SELECT Income Fund is not
allowed.
• Other terms:
■ Minimum number of units
to be switched out is 1,000;
■ Minimum number of units
left in an account after
partial switching is 500; and
■ Switching into a new Fund
is done three months after
the date of the inaugural
Prospectus of the new Fund.
• Switching out of Pacific Dana
Murni into Pacific Income
Fund and Pacific Dana KLSI
will incur a fee of 2.00%
based on the NAV per unit of
these target Funds.
• Switching out of Pacific Dana
Murni into all other Pacific
Mutual’s Funds will incur a fee
of 3.00% based on the NAV
per unit of the target Funds.
• Switching into Pacific SELECT
Balance Fund and Pacific SELECT
Income Fund is not allowed.
• Other terms:
■ Minimum number of units
to be switched out is 1,000;
■ Minimum number of units
left in an account after
partial switching is 500; and
■ Switching into a new Fund
is done three months after
the date of the inaugural
Prospectus of the new Fund.
• Free switching into Pacific
Income Fund and Pacific
Dana Murni. Unitholders who
switch out of Pacific Dana
KLSI will enter at NAV per
unit of these target Funds.
• Switching out of Pacific Dana
KLSI into all other Pacific
Mutual’s Funds will incur a fee
of 0.50% based on the NAV
per unit of the target Funds.
• Switching into Pacific SELECT
Balance Fund and Pacific SELECT
Income Fund is not allowed.
• Other terms:
■ Minimum number of units
to be switched out is 1,000;
■ Minimum number of units
left in an account after
partial switching is 500; and
■ Switching into a new Fund
is done three months after
the date of the inaugural
Prospectus of the new Fund.
Transfer facility (except under
the EPF Members’ Savings
Investment Scheme) is available
for all Funds, free of charge.
Please refer to page 87.
Transfer facility (except under
the EPF Members’ Savings
Investment Scheme) is available
for all Funds, free of charge.
Please refer to page 87.
Transfer facility (except under
the EPF Members’ Savings
Investment Scheme) is available
for all Funds, free of charge.
Please refer to page 87.
Transfer facility (except under
the EPF Members’ Savings
Investment Scheme) is available
for all Funds, free of charge.
Please refer to page 87.
Transfer facility (except under
the EPF Members’ Savings
Investment Scheme) is available
for all Funds, free of charge.
Please refer to page 87.
• 1.67% (for year ended 30
September 2003)
• 0.49
• Buying Price : RM0.5088
Selling Price : RM0.5342
• Please see page 60.
• 1.50% (for year ended 31
December 2002)
• 0.86
• Buying Price : RM0.5449
Selling Price : RM0.5824
• Please see page 66.
• 1.63% (for year ended 31
March 2003)
• 0.55
• Buying Price : RM0.5341
Selling Price : RM0.5709
• Please see page 72.
• N/A
• N/A
• N/A
• Buying Price : RM0.4943
Selling Price : RM0.5042
• N/A
• N/A
• Buying Price : RM0.5660
Selling Price : RM0.5943
• N/A
• Not more than 5.00% of NAV
per unit.
• Nil
• Please refer to page 84.
• 5.00% - 7.00% of NAV per
unit.
• Nil
• Please refer to page 84.
• 5.00% - 7.00% of NAV per
unit.
• Nil
• Please refer to page 84.
• 2.00% of NAV per unit.
• 5.00% of NAV per unit.
• Nil
• Please refer to page 84.
• Nil
• Please refer to page 84.
• 1.50% p.a. of the NAV of the
Fund.
• 0.10% p.a. of the NAV of the
Fund calculated on a daily
basis.
• 1.50% p.a. of the NAV of the
Fund.
• 0.10% p.a. of the NAV of the
Fund calculated on a daily
basis.
• 1.50% p.a. of the NAV of the
Fund.
• 0.08% p.a. of the NAV of the
Fund calculated on a daily
basis.
• 1.00% p.a. of the NAV of the
Fund.
• 0.07% p.a. of the NAV of the
Fund calculated and accrued
on a daily basis, subject to a
minimum of RM18,000 p.a.
whichever is higher.
• 1.00% p.a. of the NAV of the
Fund.
• 0.07% p.a. of the NAV of the
Fund calculated and accrued
on a daily basis, subject to a
minimum of RM18,000 p.a.
whichever is higher.
Prospective unitholders should read and understand the contents of the Prospectus and, if necessary, consult their adviser(s). Unit prices
and distributions payable, if any, may go down as well as up.
Notice Of Cooling-Off Period
If you are a first-time investor of Pacific Mutual, you are given a cooling-off period of six Business Days or any other period permitted by the Securities
Commission. Within these six Business Days from the date of receipt of the application form by Pacific Mutual, you have the right to call for withdrawal
of investment. However, this is not applicable to:
• Corporate Investors/Institutional Investors;
• Staff of Pacific Mutual; and
• Persons Dealing In Unit Trust (PDUT) of Pacific Mutual.
When you exercise the cooling-off right, the money will be refunded to you:
• (For Cash Plan and Saver’s Plan) within 10 days of receipt of the notice of cooling-off by Pacific Mutual.
• (For EPF Plan) within 10 days after receipt of the disbursement of fund from EPF. The refund will be returned to your EPF account.
Distribution
Reinvestment of distributions will be based on the Manager’s Buying Price* of the respective Funds, 21 days after the declaration of distributions.
(*Please refer to pages 86 and 87)
4
KEY INFORMATION OF THE FUNDS
EIGHT PRINCIPLES OF SUCCESSFUL UNIT TRUST INVESTING
Unit trust investing is a convenient and sensible way to build one’s wealth in the medium and long term. Investment
specialists will manage the investments and spread the risks through careful diversification. There are eight principles
which are helpful to an investor in making a wise decision in unit trust investing.
PRINCIPLE 1 : KNOW THE BASICS
What Is A Unit Trust And How Does It Work?
A unit trust is a professionally managed investment fund which pools together the money of investors having similar
objectives. The aggregate sum is then invested in a diversified investment portfolio comprising stocks, bonds and other
assets in accordance with the declared investment objective of a fund. The price of a unit reflects its Net Asset Value (NAV)
derived from a fund’s assets less its liabilities and divided by the number of units in issue. Unlike stocks, whose prices are
changed at each trade, a fund’s NAV is based on the closing prices of the stocks in its portfolio on each trading day.
To protect investors’ rights and interests, an independent trustee will ensure that the unit trust fund manager complies
with the requirements of the Deed, the Securities Commission’s Guidelines on Unit Trust Funds and the Securities
Commission Act 1993. The unit trust fund manager also appoints an approved company auditor under the Companies Act
1965 to audit a fund’s accounts before they are published in the fund’s annual report.
What Is A Typical Unit Trust Fund Investors’ Profile?
A typical unit trust fund investors’ profile would be individuals/corporations that:
• are willing to assume some form of risk through participation in the stock market and/or fixed income market;
• want to hold investments that are liquid and easily redeemed;
• want to enjoy a lower transaction cost while investing in the stock market;
• want to have a well diversified investment portfolio which is professionally managed.
What Are The General Benefits Of Investing In A Unit Trust Fund?
• Diversification – Risks are spread over a wide variety of securities in different sectors for a small investment sum. On
one’s own, this would normally require a large amount of money. Diversification also exposes a unitholder to
opportunities in many more business sectors.
• Professional fund management – A fund’s pooled resources makes it cost-effective for a team of qualified and
experienced in-house investment professionals to be engaged. They conduct full-time regular investment research and
analysis and make on-site visits. The unit trust fund manager also invests in research facilities and information resources
essential for making sound investment decisions.
• Liquidity – The unit trust fund manager stands ready to repurchase all or part of an investor’s unitholding on any
Business Day.
• Hassle free – Investment units may be bought or sold conveniently and investors are spared the time, trouble and
expense of researching and monitoring investments on their own if they were to invest directly in the stock market.
• Affordability – Only a relatively small amount of money is needed to participate in a professionally managed portfolio
of investments. For similar benefits from personal direct investments, one would have to invest considerably more
in order to have the same reach in investment opportunities and to benefit from the same level of expertise in
portfolio management.
What Are The General Risks Of Investing In A Unit Trust Fund?
• Market risk – This risk refers to developments in the market environment, and typically includes changes in regulations,
politics, technology and the economy of the country. Market developments can result in stock market fluctuations
which in turn affect a fund’s underlying investments and hence its unit price. A fund's diversification into different
sectors, however, helps to mitigate a fund's exposure risk to any single asset class.
• Company specific risk – This risk refers to the individual risk of the respective companies issuing securities. Company
specific risk includes changes to the business performance of the company, consumer tastes and demand, lawsuits,
competitive operating environment and management practices. Developments in a particular company in which a fund
has invested would result in fluctuations in the share price of that company and thus the value of a fund’s investments.
This risk is minimised through the well-diversified nature of a fund.
In addition, this risk may occur when there is a significant deterioration in an investee company’s business or
fundamentals or if there is a change in management policy resulting in a reduction or even removal of the company’s
dividend policy. Such events would result in an overall decrease in dividend income received by a fund and possible
capital loss due to a drop in the share price of a company that cuts or omits its dividend payments. This risk would be
mitigated by investing mainly in companies with a consistent historical record of paying dividends, companies operating
in fairly stable industries or companies with strong cashflow.
5
EIGHT PRINCIPLES OF SUCCESSFUL UNIT TRUST INVESTING
• Interest rate risk – This risk refers to the effect of interest rate changes on the market value of a bond portfolio. In the
event of rising interest rates, prices of fixed income securities will decrease and vice versa. Meanwhile, debt securities
with longer maturity and lower coupon rate are more sensitive to interest rate changes. Interest rate movements can
lead to fluctuations in bond prices resulting in fluctuations in a fund’s investments in such securities. In terms of Islamic
debt securities, any fluctuations in conventional interest rates would also affect the indicative/profit rates of these
Islamic debt securities. Hence, fluctuations in conventional interest rates, hence profit rates, would also lead to a rise or
fall in prices of Islamic debt securities. This risk will be mitigated via the management of the duration structure of the
portfolio of debt securities.
• Credit risk – This risk refers to the changes in financial conditions of companies issuing debt securities, which may affect
their credit worthiness. This in turn may lead to default in the repayment of principal and interest. These events can
lead to loss of capital or delayed or reduced income for a fund resulting in a reduction in a fund’s asset value and thus
unit price. This risk is mitigated by vigorous credit analyses and diversification by the bond portfolio of a fund.
• Loan financing risk – This risk must be considered carefully when unit trust investment is financed by a loan. Borrowings
increase the opportunity for profit as well as the incidence of loss. Interest cost may rise and investment value may fall,
resulting at times in the lender demanding settlement or more collaterals from the investor.
• Liquidity risk – This risk occurs in thinly traded or illiquid securities. Should a fund need to sell a relatively large
amount of such securities, the act itself may significantly depress the selling price resulting in a decrease in the value of
a fund’s assets.
• Inflation or purchasing power risk – This is the risk that inflation or the loss of purchasing power will erode the value
of investment returns and the worth of the investment itself. Investor’s returns from a fund may not keep pace with
inflation and hence reduce their purchasing power.
• Compliance risk – This refers to the risk that the unit trust fund manager does not adhere to legislation or guidelines
that govern the investment management and operations of a fund or to a fund’s investment mandate stated in the
deed. This risk also concerns non-compliance with internal operating policies and the unit trust fund manager acting
fraudulently or in a manner that is unfair to unitholders. Compliance risk could result in disruptions to the operations
of a fund and potentially lead to reduced income/gains or even losses to unitholders.
• Expectation risk – This risk refers to the fact that prospects for recovery may be diminished by circumstances such as:
– A serious global economic meltdown that is beyond expectation;
– A company’s proposed restructuring plan fails for various reasons;
– Management’s inability to turn around the company within a reasonable period of time due to factors beyond their
control; and
– The initial cyclical nature of the problem has become structural.
Should a recovery situation not turn out as expected due to the above reasons, there may be a loss or reduction of
profits/income resulting in a reduction in a fund’s assets. This risk would be mitigated by a thorough study of potential
recovery situations (economic, industry and company specific) taking into account the favourable probability of a
positive outcome, risks and returns before any investment in such situations are made. Continuous monitoring of
developments in potential recovery situations would be conducted to ensure that these pan out as expected.
6
EIGHT PRINCIPLES OF SUCCESSFUL UNIT TRUST INVESTING
• Futures risk – As futures are conducted on an initial margin basis, a relatively small price movement in a futures contract
may result in an immediate and substantial loss (or gain) for a fund. Adverse price movements could create additional
losses over and above the initial futures contract costs. This risk is mitigated by entering into futures contracts only for
hedging purposes. Specifically, a fund will only enter into futures sales contracts to hedge against declines in the value
of stocks in the portfolio.
Futures contracts can play a part in reducing the risk of a fund’s investment portfolio by providing a hedge against
shorter-term volatility of financial markets. However, futures carry certain additional risks that if not properly managed
could result in significant losses or underperformance. These include:
■
Gearing risk – Futures contracts may involve a high degree of “gearing” or “leverage”. This means that a small
movement in the price of the underlying asset may have a very large magnifying effect in the price of the futures
contracts, both in an upward or downward direction.
■
Mismatch risk – Risk that arises when the terms of underlying investments and the instrument used to hedge its risks
do not match. Such mismatches could be due to:
– Mismatch of derivative parcel size (or multiple of this) versus actual physical portion;
– Mismatch of maturity, e.g. 3-month KLIBOR interest rates futures contract versus 1-year bond holding; and
– Mismatch of component constituting an index, e.g. KLCI vs actual equity portfolio of fund.
■
Futures liquidity risk – This category of risk includes:
– Risk that fair price or firm bid cannot be obtained from a market counterpart;
– Risk that funds are unable to unwind illiquid positions; and
– Market price stability affecting funds’ ability to meet margin payments.
How Do Unit Trusts Compare With Direct Investments In The Stock Market And Fixed Deposits?
Unless a person has a very large amount of money to invest directly in individual stocks, he may not be able to achieve a
sufficient level of diversification. Losses in one or more of his stocks may substantially reduce the value of his portfolio.
A unit trust fund, on the other hand, has a diversified portfolio and losses in some of the stocks will probably be offset by
gains in other stocks. Nevertheless, a person with an undiversified portfolio may reap great returns if one or more of the
stocks increase in value. Unit trust prices rise more gradually when some of its stocks rise in price because unit prices are
based on the total value of the portfolio. Fixed deposits are generally safe and the returns are guaranteed. The returns
are however usually lower than investments carrying more risk and may be eroded by inflation more significantly. Unit
trusts have historically yielded better returns than fixed deposits but such investments carry more risks of loss.
Performance Indicators/Information
Investors measure the performance of their investments in unit trusts by various means. This often only takes into account
pure price changes (rise or fall in unit prices) or the amount of distributions received from a fund. The best method of
calculating performance is by including both. This performance measure is called total returns as it includes all sources of
income and gains (or losses). Investors need not compute these calculations themselves as total returns figures are
published weekly in leading financial magazines and dailies. For a better picture of a fund’s performance, investors should
look at both short (three to six months) and longer-term (three and five years) performance figures.
Who Regulates Unit Trust Funds In Malaysia?
The Securities Commission regulates the establishment and operations of unit trusts in Malaysia under the Securities
Commission Act 1993, the Securities Commission’s Guidelines on Unit Trust Funds and other relevant securities law. This
requires, among other things, that the unit trust fund manager and the trustee execute a deed and register it with the
Securities Commission. A copy of the deed may be inspected or purchased at the unit trust fund manager’s office.
In addition, the Securities Commission has placed stringent requirements in the appointment of the management
company, the trustee, the management company’s directors, chief executive officer, investment committee and
Syariah Committee Members/Syariah Advisers. The appointment of all these parties must be approved by the
Securities Commission.
PRINCIPLE 2 : KNOW YOURSELF
It is conventional wisdom that one should be willing to accept more risk if one is looking for higher return, or be happy
with less return at lower risk. There is however some flexibility in planning to meet individual needs and preferences.
Answers to the following questions can serve as a guide to choosing the most appropriate funds for investment:
• What stage of the life cycle am I at now?
• What are my investment goals?
• What kind of returns am I looking for?
• How much risk am I comfortable with?
7
EIGHT PRINCIPLES OF SUCCESSFUL UNIT TRUST INVESTING
PRINCIPLE 3 : INVESTMENT STRATEGY
Unit trust works best when it is taken as an investment vehicle for the medium to long term. Funds selected for
investments should be appropriate for one’s investment horizon, financial goals and risk profile. Attention should also be
given to hedging against inflation and achieving a good degree of diversification. Circumstances change and so one’s
strategy should be reviewed regularly.
PRINCIPLE 4 : START EARLY
The power of compounded returns makes it wise to start saving and investing as early as possible. There may still be the
risk of decline in the capital value of investment, but a longer investment horizon will certainly give more room for riding
out the bad times or the occasional setbacks.
PRINCIPLE 5 : INVEST REGULARLY
Regular investments have benefited in many cases from the principle of Ringgit Cost Averaging. Instead of trying to time
the market, which even the experts have difficulty achieving, invest a fixed amount regularly especially when such surplus
has been budgeted from a regular stream of income. This practice of investing regularly has a tendency to average out
wild fluctuations in prices to the investor’s benefit.
PRINCIPLE 6 : INVEST FOR THE MEDIUM TO LONG TERM
Historically, unit trusts have provided better returns in the longer term, but have entailed greater short-term risks than
other savings vehicles. An investor’s planning and expectations must accordingly be attuned to a longer investment
horizon. Unit trusts offer potentially higher returns over the longer term although they do present wider fluctuations in
the short run.
PRINCIPLE 7 : DIVERSIFY YOUR PORTFOLIO
Diversification through prudent asset allocation among the various fund options can help ride out interim fluctuations. It
works because the different asset classes have different fundamental characteristics and can move in different directions.
For example, when the economy faces a downturn and interest rates are falling, bonds will usually outperform equities,
whereas when the economy is booming, equities will generally outperform bonds. In the long run, diversification increases
returns while lowering risks, which is why it is the single most important part of any investment strategy.
PRINCIPLE 8 : MAKE ADJUSTMENTS OVER TIME
Review your investments regularly to ensure that they still reflect your financial goals and personal circumstances. For
example, at one stage of your life you might be seeking longer-term investment that focused on building savings and
accumulating capital. Later on, you might prefer a lower-risk investment that places more emphasis on income. Whatever
the reason, making adjustments over time is essential and needs to be incorporated into your investment strategy.
Through regular monitoring you can ensure that your investment portfolio continues to match your financial objectives.
8
EIGHT PRINCIPLES OF SUCCESSFUL UNIT TRUST INVESTING
ALL ABOUT THE MANAGER - PACIFIC MUTUAL FUND BHD
WHO OWNS PACIFIC MUTUAL?
PacificMas Berhad owns 85% equity interest in the share capital of Pacific Mutual and Koperasi Angkatan Tentera Malaysia
Berhad owns the remaining 15%.
WHAT IS THE CORE BUSINESS OF PACIFIC MUTUAL?
The principal activity of Pacific Mutual is that of unit trust management. Pacific Mutual was incorporated on 15 March 1995
under the Companies Act 1965 with an authorised and paid-up capital of RM5 million divided into 5 million ordinary shares
of RM1.00 each. Its registered office is at Level 18, Menara Prudential, No. 10 Jalan Sultan Ismail, 50250 Kuala Lumpur.
As at 3 November 2003, the Company had a staff force of 75, comprising 39 executive staff and 36 non-executive staff.
The primary functions of Pacific Mutual are:
■
Investment functions which include:
• Conducting investment research.
• Determining a fund’s investment strategy.
• Investing the assets of a fund.
• Reviewing a fund’s portfolio and investment performance.
■
Administrative functions which include:
• Maintaining unitholders’ register.
• Determining daily buying and selling prices.
• Preparing a fund’s interim and annual reports.
• Keeping proper records on unitholders’ transactions.
WHAT IS OUR CORPORATE MISSION?
■
Our Corporate Mission:
• To be Malaysia’s preferred unit trust company.
■
To Achieve Our Mission:
• We will provide investors with the highest return possible at minimal risk by being active, disciplined and researchdriven in our investment management.
• We will provide excellent services to satisfy the needs and expectations of our investors and distributors.
• We will maintain a high level of professionalism among our staff and agents.
• We will promote teamwork, innovation and mutual respect at all levels within the Company.
WHAT IS OUR INVESTMENT PHILOSOPHY?
Our investment philosophy is aimed at providing investors with maximum returns at an acceptable level of risk by:
■
Applying an active fund management style that constantly monitors and reviews the market place for opportunities to
invest in.
■
Being research-driven in our stock selection and disciplined in our asset allocation.
■
Diversifying our investments to create a well-balanced portfolio.
■
Adhering to the investment guidelines set by the regulatory Authorities and the Investment Committee.
HOW MANY FUNDS ARE MANAGED BY PACIFIC MUTUAL?
Pacific Mutual is currently managing 11 Funds. The Funds are in the hands of an experienced Board and a prudent
Investment Committee.
Fund
Launch Date
Maximum Approved
Fund Size
Units In Circulation As
3 November 2003
Pacific Premier Fund
10 August 1995
500 million units
324.53 million units
Pacific Pearl Fund
6 January 1997
500 million units
360.33 million units
Pacific Dana Aman
16 April 1998
1 billion units
480.50 million units
Pacific Millennium Fund
15 April 1999
500 million units
129.40 million units
Pacific Recovery Fund
15 April 1999
500 million units
243.90 million units
Pacific Income Fund
18 August 2000
500 million units
320.80 million units
Pacific Progressive Fund
2 January 2001
500 million units
44.60 million units
Pacific Dana Murni
25 March 2003
500 million units
56.90 million units
Pacific Dana KLSI
25 March 2003
500 million units
8.50 million units
Pacific SELECT Balance Fund
11 August 2003
800 million units
240.70 million units
Pacific SELECT Income Fund
11 August 2003
300 million units
54.10 million units
9
ALL ABOUT THE MANAGER - PACIFIC MUTUAL FUND BHD
WHY INVEST WITH PACIFIC MUTUAL?
■
Fund Management Expertise
Pacific Mutual’s Investment Management Team comprises full-time in-house professional fund managers who have
been meticulously selected for their individual strengths and expertise in portfolio operations and management as well
as for their impeccable professional standards. They draw on the combined skills and experience of our Investment
Committee in various areas of business. Pacific Mutual is research-oriented and employs fundamental, technical and
quantitative analyses in asset allocation and stock selection.
■
A Highly Disciplined Investment Process
Pacific Mutual adopts a highly disciplined investment process by taking a team approach in decision-making and
applying a consistent investment methodology to secure maximum returns for investors at an acceptable level of risk.
■
Dedicated Customer Service
Pacific Mutual is committed to maintaining the highest standards of dedicated customer service. The core services
offered include:
• Financial Planning
The growing speed and complexity of today’s market underline the value of professional advice. Pacific Mutual
helps you to allocate your assets properly and in accordance with your specific needs in order to achieve your
financial goals.
• Regular Updates
Pacific Mutual provides regular information updates through publications such as Close Watch, Daily Flash and
Manager’s Report.
• Customer Care Programme
Please refer to the section, “How Does Pacific Mutual View a Company-Investor Relationship?” on page 11.
■
www.pacificmutual.com.my
Our comprehensive website offers on-line access to up-to-date information on the Company, our Funds and the stock
market, as well as various financial planning assistance tools.
• Daily/Current Updates
Daily prices of the Funds, up-to-date performance data on the Funds, the latest stock market happenings, along with
our fund manager’s current views on the markets.
• Key Information On All Our Funds
Investment objectives and strategies, targeted asset allocations, investors’ profiles and other important information.
• Fund Fact Sheets
Monthly fund updates disclosing top stock holdings of our Funds, the current asset allocation, the performance and
rankings of the Funds, and our fund manager’s monthly comments, along with various other data.
• Aids For Financial Planning
Personal financial planning tools and risk profiling to assist in self-directed financial planning.
• E-Service
Consolidated account statements and relevant fund information bundled in with personal financial planning tools
to help investors make informed investment decisions and for our consultants to better serve their clients.
• Press Releases
The latest and archived press releases on our Funds and developments of the Company.
More information and capabilities which also allow surfers to contribute valuable feedback to enhance our service are
available at our website.
■
A Wide Choice Of Investment Products
As one of Malaysia’s fastest growing unit trust management companies, Pacific Mutual offers an array of innovative
unit trust funds to suit the needs of investors over a wide risk/return spectrum.
10
ALL ABOUT THE MANAGER - PACIFIC MUTUAL FUND BHD
WHAT IS THE FINANCIAL POSITION OF PACIFIC MUTUAL?
The financial position of Pacific Mutual for the past three financial years is summarised as follows:
Financial Highlights
Year Ended 31 December
5 months Ended
31 May 2003
RM
2002
RM
2001
RM
2000
RM
5,000
5,000
5,000
5,000
19,204
17,772
13,227
11,286
Turnover (’000)
8,742
31,172
16,598
21,045
Profit Before Taxation (’000)
2,001
7,364
2,785
4,466
Profit After Taxation (’000)
1,432
5,265
1,942
3,243
Paid-up Share Capital (’000)
Shareholders’ Funds (’000)
IS THERE ANY PRUDENTIAL CONTROL?
Yes. Pacific Mutual has a Senior Compliance Officer who reports to the Company’s Board of Directors and liaises with the
Securities Commission to ensure that all laws, regulations, codes of conduct and prudential limits are followed. Brochures
and marketing materials are subject to rigorous examination and review before release. Customer complaints are also
objectively reviewed and seriously attended to.
HOW DOES PACIFIC MUTUAL VIEW A COMPANY-INVESTOR RELATIONSHIP?
The sensitivities of the investment decision process are such that it is best to work one-on-one with a dedicated unit trust
consultant who can be relied on for service and professionalism. Our consultants are trained in financial planning. Through
personal discussions, a clear understanding of investment objectives can be arrived at.
Although investment objectives are unique to every individual, they inevitably involve the following factors:
• Risk tolerance
• Capital growth/income requirements
• Expectations of performance against risk tolerance
• Time horizons
Pacific Mutual has also established a Prestige Club under the Customer Care Programme for its customers. Eligibility and
value-added benefits are given below:
Prestige Silver Investor
Investment
amount
Value-added
benefits
RM50,000 to RM99,999
Prestige Gold Investor
RM100,000 and above
• Dedicated toll-free line to access
• Dedicated toll-free line to access
Customer Care personnel
Customer Care personnel
• Daily updates on the stock
• Daily updates on the stock
market through electronic mail
market through electronic mail
• Birthday programme
• Birthday programme
• Quarterly updates on unitholding • Quarterly updates on unitholding
• Anniversary programme
• Anniversary programme
• Personalised financial planning
• Personalised financial planning
service
service
• Free Personal Accident insurance • Free Personal Accident insurance
coverage
coverage
• Free magazine
Prestige Diamond Investor
RM500,000 and above
• Dedicated toll-free line to access
Customer Care personnel
• Daily updates on the stock
market through electronic mail
• Birthday programme
• Quarterly updates on unitholding
• Anniversary programme
• Personalised financial planning
service
• Free Personal Accident insurance
coverage
• Free magazine
• Pacific Mutual anniversary gift
Pacific Mutual’s Prestige Club is only open to investors who have invested directly with the Company or through its Unit
Trust Consultants. Investments made through Institutional Unit Trust Agents (IUTAs) may enjoy different terms and
privileges offered by the respective IUTAs.
11
ALL ABOUT THE MANAGER - PACIFIC MUTUAL FUND BHD
UNCLAIMED MONIES
For distribution cheques which are left uncashed by unitholders upon lapse of the six months’ cheque validity period, the
Manager shall reinvest the distribution into additional units of the Funds on their behalf, at the expiry of the distribution
cheques based on the Manager’s Buying Price on the said expiry date.
For other cases, the unpresented cheques will be deemed as unclaimed monies and shall be paid to the Federal
Consolidated Trust Account in accordance with the Unclaimed Moneys Act 1965 (Revised 2002). In the event the
unitholders wish to claim the money, they are required to complete and submit the following documents to the Registrar
of Unclaimed Moneys:
1. A copy of Application For Refund of Unclaimed Moneys Form (UMA-7);
2. The original cheque, or, if this is not available, letter of confirmation from Pacific Mutual showing ownership of the
money to be claimed and “Bon Tanggungrugi” (UMA 8) form; and
3. Photocopy of the identity card/ passport of unitholder.
REBATES AND SOFT COMMISSIONS
Soft commissions received from brokers are retained by the Manager for goods and services which are of demonstrable
benefit to the unitholders such as research materials, data and quotation services, computer hardware and software,
investment advisory services, and investment related publications. Rebates, if any, are credited to the accounts of the Funds.
CONFLICT OF INTERESTS
Investments of the Funds are scrutinised regularly by the Compliance Unit. Furthermore, Directors, Investment Committee
members and employees are required to disclose to the Board of Directors any situations where their interests may conflict
with those of the Funds and to refrain from participation in decision-making in those areas. Employees who invest in
shares are also required to obtain prior permission. This is to ensure that there is no conflict of interests and, in particular,
that transactions carried out are executed on the best available terms and that investments are not made in such a way
that the Funds are disadvantaged by the transactions.
WHO ARE BEHIND PACIFIC MUTUAL?
Board Of Directors
Pacific Mutual has seven experienced members on the Board of Directors including three independent Directors with
backgrounds in investment, banking, finance and the public sector. The Board of Directors meets monthly to ensure that
the objectives of the Funds are achieved within the relevant guidelines and mandates set.
Name:
Experience/Qualifications:
Mr Choi Siew Hong (KMN, JMN) - Chairman
• He is currently Chairman of PacificMas Berhad, The Pacific Insurance Berhad as
well as United Malacca Berhad. He has been the Chairman of Pacific Mutual since
October 1997.
• He is also a Director of Malaysia Smelting Corporation Berhad.
• He has had a long career in banking, having served Bank Negara Malaysia as
Secretary and Adviser from December 1958 to January 1966 and then as Deputy
Governor to October 1972. He was an Executive Director of the World Bank
representing Malaysia and other countries in the South East Asia Voting Group
from November 1972 to October 1975. He assumed a senior executive position
and later that of General Manager in the Malaysia Division of Oversea-Chinese
Banking Corporation Limited from 1976 to July 1986.
• He was a Director of the then The Pacific Bank Berhad from 1976 to 1994 and
Chairman of the Bank from 1988 to 1994. Prior to his re-appointment as
Chairman of Pacific Bank in October 1997, he was the Chairman of OCBC Bank
(Malaysia) Berhad. From 1997 to early 2003, he was a Director of Great Eastern
Life Assurance (Malaysia) Berhad.
• First Class Honours Degree in Economics (University of Malaya).
12
ALL ABOUT THE MANAGER - PACIFIC MUTUAL FUND BHD
Name:
Experience/Qualifications:
Tan Sri Dato’ Wong Kum Choon (PSM, DPMP)
• He has been a Director of Pacific Mutual since its inception in 1995. He also sits
on the Board of Directors of PacificMas Berhad. He is currently the Chief
Executive Officer of the Malaysian Rubber Export Promotion Council (MREPC).
• He has had a long career in the public sector since 1959 when he joined the
Malayan Civil Service/Malaysian Home and Diplomatic Service as Assistant State
Secretary, Pahang State Government; served for 111/2 years in Economic Planning
Unit, Prime Minister’s Department from 1961 to 1972 and was involved in the
preparation of five-year National Development Plans and 20-year Perspective
Plans, serving in various capacities, including as the Head of Macro Planning. He
served in the Ministry of Primary Industries from 1972 to 1993 culminating in the
post of Secretary-General. He also served as Chairman of Palm Oil Registration
and Licensing Authority and Chairman of Malaysian Timber Industry Board as
well as being on the Malaysian Rubber Research and Development Board and
the Board of Directors of Malaysian Rubber Development Corporation (MARDEC).
He led and participated in various international negotiations on commodity and
trade issues and served as the first Chairman of the International Natural Rubber
Council. He retired from Government service in April 1993 and assumed the
position of Chief Executive Officer, Malaysian Timber Council up to June 1997. He
was a member of the Securities Commission from 1996 till May 1999. He served as
a consultant for two economic studies: one on timber market opportunities for the
International Tropical Timber Organisation and the other on furthering rubberbased industrialisation as part of an overall study for the Economic Planning Unit.
• Honours Degree in Economics (University of Malaya); Masters Degree in Public
and International Affairs (MPIA) (Graduate School of Public and International
Affairs, University of Pittsburg, USA). He also studied under the World Bank and
the London Business School.
Name:
Experience/Qualifications:
Dato’ Haji Mustafa bin Mohamad Ali (DIMP, DPCM) - Independent Director
• He has been a Director of Pacific Mutual since its inception in 1995. He is also a
Director of public listed Sime UEP Properties, Batu Kawan Berhad and Affin
Holdings Berhad. He has experience in sales, advertising, marketing and general
management, having trained and worked in British-American Tobacco Co. Ltd,
London, Malaysian Tobacco Co. Bhd, Kuala Lumpur and Sime Darby Berhad
where his responsibilities covered the group’s operations in Malaysia and the
Asian region. He also worked as a Business Adviser to Kumpulan Guthrie Berhad
for over eight years.
• M.A. (Economics) Degree (Cambridge University, UK); Advanced Management
Programme (Harvard Business School, USA).
Name:
Experience/Qualifications:
Datuk Fong Weng Phak
• He was appointed a Director of Pacific Mutual in August 1999. Currently, he is
also a Director of United Malacca Berhad, Fraser & Neave Holdings Bhd, De La
Salle Institute, The Tan Sri Tan Foundation, Great Eastern Life Assurance
(Malaysia) Berhad, Overseas Assurance Corporation (Malaysia) Berhad, OverseaChinese Banking Corp Ltd, Genesis Malaysia Maju Fund Ltd and Assunta Hospital.
• He began his working career in Bank Negara Malaysia in 1964 and was Head of
the Economics Department when he left the Bank in 1982. He joined the
Malaysia Division of the Oversea-Chinese Banking Corp Ltd in 1983 and was
appointed General Manager of the Malaysia Division in 1986. With the
incorporation of the Malaysia Division as OCBC Bank (Malaysia) Berhad in 1994,
he was appointed Director and Chief Executive Officer. In 1995 he left OCBC Bank
(Malaysia) Berhad to serve as Deputy Governor of Bank Negara Malaysia on a
three-year contract.
• Honours Degree in Economics (University of Malaya); Masters Degree in Public
Administration (Harvard University).
13
ALL ABOUT THE MANAGER - PACIFIC MUTUAL FUND BHD
Name:
Experience/Qualifications:
Dr Neoh Soon Kean - Independent Director
• He has been a Director of Pacific Mutual since its inception in 1995. He is a
Director of several public and private corporations including Kuala Sidim Berhad.
He is the Chairman of Dynaquest Sdn Bhd, an investment consulting and
publication firm. Dr Neoh acts as Investment Adviser to private individuals and
firms including mutual funds, insurance companies and investment institutions.
He is also a financial and economic writer and conducts regular public courses and
seminars on investment and financial management. He is currently a member of
the Rating Review Committee of Malaysian Rating Corporation and a member of
the Panel of KLSE Compensation Fund. He had been a lecturer in Universiti Sains
Malaysia, a member of the KLSE Committee and served the maximum of six years
as a board member of Malaysian Accounting Standards Board.
• BSc. (Economics) Degree (London University); MBA (Harvard University); PhD. in
Finance (Edinburgh University).
Name:
Experience/Qualifications:
Mr Mak Tian Meng - Independent Director
• He was appointed a Director of Pacific Mutual in 1996. He served Bank Negara
Malaysia for 10 years with the Department of Bank Examination and Internal
Audit. From November 1973 to October 1977, Mr Mak joined Ong & Co.
Stockbrokers, Singapore as the General Manager and thereafter served as a
Senior Dealer in GP Securities Sdn Bhd before retiring in 1987.
• Honours Degree in Economics (University of Malaya); Fellow of the Chartered
Institute of Bankers, London.
Name:
Experience/Qualifications:
Mej (B) Bibi Zarjaan binti Akhbar Khan (AMN)
• She was appointed a Director of Pacific Mutual in August 2002. She is a Director
of Koperasi Angkatan Tentera Malaysia Berhad. She has had a long career in the
Ministry of Defence, beginning with the Record and Pension Directorate before
moving on to Human Resource Department. From August 2001 to January 2002,
she was the Human Resource Manager of Takaful Nasional Sdn Bhd. Currently,
she is a lecturer at the Department of Management and General Studies,
Akademi Tentera Malaysia (ATMA) in Sungai Besi, Kuala Lumpur.
• Degree in Mass Communications (Universiti Teknologi Mara); Diploma in
Strategic Defence Studies (Universiti Malaya); Master of Science (Human
Resource Development) (Universiti Putra Malaysia).
The Investment Committee
The Investment Committee is responsible for setting and determining the investment policies/guidelines and strategies of
the Funds. They meet on a monthly basis to discuss investment strategies, asset allocation and stock selection as well as
review and monitor portfolio performance against benchmarks and guidelines.
The following six persons are members of the Investment Committee for Pacific Premier Fund, Pacific Pearl Fund, Pacific
Millennium Fund, Pacific Recovery Fund, Pacific Income Fund and Pacific Progressive Fund:
• Mr Choi Siew Hong, as aforementioned.
• Tan Sri Dato’ Wong Kum Choon, as aforementioned.
• Dato’ Haji Mustafa bin Mohamad Ali*, as aforementioned.
• Datuk Fong Weng Phak, as aforementioned.
• Dr Neoh Soon Kean*, as aforementioned.
• Mr Mak Tian Meng*, as aforementioned.
14
ALL ABOUT THE MANAGER - PACIFIC MUTUAL FUND BHD
The following eight persons are members of the Investment Committee for Pacific Dana Aman, Pacific Dana Murni and
Pacific Dana KLSI, who act in consultation with the Corporate Syariah Consultants on investment management matters
relating to Syariah principles:
• Mr Choi Siew Hong, as aforementioned.
• Tan Sri Dato’ Wong Kum Choon, as aforementioned.
• Dato’ Haji Mustafa bin Mohamad Ali*, as aforementioned.
• Datuk Fong Weng Phak, as aforementioned.
• Dr Neoh Soon Kean*, as aforementioned.
• Mr Mak Tian Meng*, as aforementioned.
• Dr Obiyathulla Ismath Bacha*, as belowmentioned.
• Dr Mohd Daud Bakar*, as belowmentioned.
* Independent Investment Committee members
Name:
Experience/Qualifications:
Dr Obiyathulla Ismath Bacha
• He is currently the Professor of Finance and Director of the Management Centre
at the International Islamic University Malaysia. Prior to this, he was the Assistant
Professor of Finance at Boston University, USA. Dr Obiyathulla has conducted
research and publications in the areas of Islamic Finance and Financial Derivative
Instruments.
• B.Soc.Sc Degree (Universiti Sains Malaysia); M.A. (Economics); MBA; DBA (Doctor
of Business Administration in Finance) (Boston University, USA).
Name:
Experience/Qualifications:
Dr Mohd Daud Bakar
• He is currently an Associate Professor and Deputy Rector (Student Affairs and
Discipline), International Islamic University Malaysia. He is a member of the
Syariah Advisory Council of the Securities Commission of Malaysia, Bank Negara
Malaysia and other financial institutions such as Malaysian Rating Corporation
(MARC), Takaful Nasional, International Islamic Financial Market, Dow Jones
Islamic Index, etc.
• Bachelor of Syariah (Kuwait University); Doctor of Philosophy (University of St
Andrews, Scotland); Bachelor of Jurisprudence (University of Malaya).
Appointment Dates Of Investment Committee Members
Funds
Pacific
Premier
Fund
Pacific
Pearl
Fund
Pacific
Dana
Aman
Pacific
Millennium
Fund &
Pacific
Recovery
Fund
Pacific
Income
Fund
Pacific
Progressive
Fund
Pacific
Dana
Murni &
Pacific
Dana KLSI
Pacific
SELECT
Balance
Fund &
Pacific
SELECT
Income
Fund
Mr Choi Siew Hong
21/10/97
21/10/97
16/04/98
15/04/99
14/08/00
02/01/01
06/03/03
16/06/03
Tan Sri Dato’ Wong
Kum Choon
10/08/95
06/01/97
16/04/98
15/04/99
14/08/00
02/01/01
06/03/03
16/06/03
Dato' Haji Mustafa
bin Mohamad Ali
10/08/95
06/01/97
16/04/98
15/04/99
14/08/00
02/01/01
06/03/03
16/06/03
Datuk Fong Weng Phak
26/07/99
26/07/99
26/07/99
26/07/99
14/08/00
02/01/01
06/03/03
16/06/03
Dr Neoh Soon Kean
10/08/95
06/01/97
16/04/98
15/04/99
14/08/00
02/01/01
06/03/03
16/06/03
Mr Mak Tian Meng
02/03/96
06/01/97
16/04/98
15/04/99
18/08/00
02/01/01
06/03/03
16/06/03
Dr Obiyatulla Ismath
Bacha
N/A
N/A
16/04/98
N/A
N/A
N/A
06/03/03
N/A
Dr Mohd Daud Bakar
N/A
N/A
16/04/98
N/A
N/A
N/A
06/03/03
N/A
Names
15
ALL ABOUT THE MANAGER - PACIFIC MUTUAL FUND BHD
Key Management Staff
Name:
Position:
Experience/Qualifications:
Michael C. A. Auyeung (Date Of Appointment: 22 February 2002)
Chief Executive Officer
• He commenced his career in the investment industry in Asia in 1989. Based out
of Hong Kong, Singapore and Malaysia, Michael has been employed as an
investment analyst and head of research in the securities industry, covering the
North Asian as well as ASEAN markets. After working for more than five years in
equities research with international, regional and local investment houses,
Michael subsequently moved on to institutional marketing and management
positions with Malaysian based brokerages, before taking up his position as
Chief Executive Officer of Pacific Mutual.
• Master of Business Administration (University of Western Ontario, London,
Canada); Bachelor of Science (University of British Columbia, Vancouver, Canada).
Name:
Position:
Experience/Qualifications:
Gan Eng Peng (Date Of Appointment: 8 April 2002)
General Manager, Business Development & Marketing
• He is responsible for the business and product development, and the marketing
and communications functions of Pacific Mutual. He has worked for over nine
years in the financial services industry in Malaysia. His main work experience has
been in the investment research field for both local and foreign equity research
companies. His other work experience includes corporate finance and
management of a financial portal.
• Bachelor of Science (Honours) Degree in Industrial and Business Economics
(London School of Economics, England).
Name:
Position:
Experience/Qualifications:
Soon Chen Loy (Date Of Appointment: 1 May 1995)
Assistant General Manager, Business Development
• He is in charge of leading the Company’s agency force and promotional
activities. He is also responsible for planning, developing and implementing
marketing plans and strategies aimed at achieving the Company’s sales target
and bottom-line profitability. He has more than 11 years’ working experience in
financial services and management consulting.
• Bachelor of Science (Honours) in Business Administration (University of Arkansas,
USA); CFPTM.
Name:
Position:
Experience/Qualifications:
Wong Lee Fong (Date Of Appointment: 8 May 1995)
Assistant General Manager, Head of Operations
• She has more than 15 years’ experience in the field of management covering
human resource, administration, marketing and customer service in the services
industry. Since joining Pacific Mutual in May 1995, she has been responsible for
unit trust administration, customer care and human resource and she assumed
her present position in May 2002.
• Honours Degree in Economics (Manchester Metropolitan University, UK).
Name:
Position:
Experience/Qualifications:
Chee Weng Wah (Date Of Appointment: 8 May 1995)
Senior Manager, Business Development
• He is responsible for agency force development including recruitment of new
agents and retention of quality agents, particularly in East Malaysia. He also
assists in establishing agency offices, branches and a professional and effective
agency force. He has more than nine years’ working experience in insurance,
unit trust and securities, having also worked as a trainer specialising in business
development.
• Honours Degree in Economics (Universiti Kebangsaan Malaysia); Certificate in
Financial Planning (Malaysian Insurance Institute); CFPTM.
16
ALL ABOUT THE MANAGER - PACIFIC MUTUAL FUND BHD
Name:
Position:
Experience/Qualifications:
Elizabeth Yeo Guek Meng (Date Of Appointment: 15 July 2003)
Senior Manager, Business Development
• She is responsible for the Company’s corporate sales. She has approximately nine
years of experience in the financial services industry. She was based in several
brokerage houses, where she provided institutional sales and research support to
both local and foreign corporate and fund management clients. Prior to that, she
was based in Singapore and Johor as an accountant with a conglomerate listed
on the Singapore Stock Exchange.
• Associate of the Chartered Institute of Management Accountants, UK.
Name:
Position:
Experience/Qualifications:
Chong Sai Ching (Date Of Appointment: 15 May 1995)
Manager, Finance
• She is responsible for the financial accounting of the Company and all the Funds
it manages. She has more than eight years’ working experience in the unit
trust industry.
• Associate of the Chartered Institute of Management Accountants.
Name:
Position:
Experience/Qualifications:
Hee Chiew Lin (Date Of Appointment: 17 June 2002)
Senior Compliance Officer
• She is responsible for the Company’s compliance matters. She has served as a
compliance officer with a unit trust management company prior to joining
Pacific Mutual and, before that, as an executive in the investment department of
a life insurance company.
• Bachelor of Laws (Honours) (University of London); Admitted to the Malaysian
Bar in 1997.
Name:
Position:
Experience/Qualifications:
Khoo Bee Chin (Date Of Appointment: 17 April 1995)
Manager, Customer Care & Administration
• She is responsible for customer service and administration of sale and repurchase
of units of all the Funds. She has more than eight years’ working experience in
the unit trust industry.
• Associate of the Institute of Chartered Secretaries and Administrators.
Name:
Position:
Experience/Qualifications:
Leong Chew Wah (Date Of Appointment: 14 April 1995)
Manager, Corporate & Marketing Communications
• She is responsible for the Company’s corporate and marketing communications
which include branding, publicity and press relations. She has more than eight
years’ working experience in the unit trust industry.
• Bachelor of Arts (Honours) (Universiti Malaya); Certificate in Financial Planning
(Malaysian Insurance Institute).
Name:
Position:
Experience/Qualifications:
Wong Yoon Ling (Date Of Appointment: 19 June 1995)
Manager, Investment Administration
• She is responsible for investment operations and measuring fund performance.
She has more than nine years’ working experience in the unit trust and life
insurance industries.
• Associate of the Institute of Chartered Secretaries and Administrators.
Name:
Position:
Experience/Qualifications:
Wong Mee Gor (Date Of Appointment: 21 May 1996)
Senior Executive, Human Resources & Administration
• She is responsible for human resource and office administration. She has more
than eight years’ working experience in several industries including a consumer
product company.
17
ALL ABOUT THE MANAGER - PACIFIC MUTUAL FUND BHD
The Investment Team conducts investment research, determines a Fund’s investment strategy, invests the assets of a Fund
and reviews a Fund’s portfolio and investment performance. The following are the key members of the Investment Team:
Name:
Position:
Experience/Qualifications:
Arnold Lim Boon Lay (Date Of Appointment: 1 October 2002)
Chief Investment Officer
• He started his career with Citibank NA, Kuala Lumpur before moving to manage
venture capital and mezzanine investments and later unit trust and discretionary
funds. While as General Manager of HLG Asset Management, the risk-adjusted
returns of the firm’s discretionary funds were ranked No. 1 on Information Ratio
and No. 2 on Sharpe Ratio by Watson Wyatt over 1994 to 1998. He was previously
Head of Research of ING Barings (Malaysia), where he was ranked No. 2 for
Malaysia Strategy by Asiamoney in 2001.
• CFA charterholder (Association for Investment Management and Research, USA);
Master of Business Administration (University of California, Berkeley).
• He is the designated person responsible for the investment management of
Pacific Premier Fund, Pacific Millennium Fund and Pacific Progressive Fund.
Name:
Position:
Experience/Qualifications:
Geoffrey Ng Ching Fung (Date Of Appointment: 17 March 2003)
Senior Manager, Investment
• He assists the Chief Investment Officer in the investment management of the
Funds. Prior to joining Pacific Mutual, Geoffrey was Practice Leader of a
professional services company specialising in information management,
specialist training and business intelligence best practices for the financial
services industry. Preceding that, he was a licensed Portfolio Manager at one of
the country’s largest fund management institutions, with collective
responsibilities in management of sovereign fixed income, corporate retirement
(balanced) plans and fixed income allocations of unit trust mandates. He is
currently the Vice-Chairman of the Malaysian Society of Financial Analysts.
• CFA charterholder (Association for Investment Management and Research, USA);
CFPTM; Bachelor of Commerce (High Honours) (Carleton University, Ottawa,
Canada) with double majors in Accounting and Finance.
• He is the designated person responsible for the investment management of
Pacific Dana Murni, Pacific SELECT Balance Fund and Pacific SELECT Income Fund.
Name:
Position:
Experience/Qualifications:
Nurrul Huda Shamsuddin (Date Of Appointment: 7 July 1997)
Senior Manager, Investment
• She assists the Chief Investment Officer in the investment management of the
Funds. Prior to joining Pacific Mutual, Nurrul worked in a unit trust management
company as Acting Investment Manager, in charge of portfolio management.
She had also earlier worked for several years in the research department of a
stockbroking firm.
• Master of Science in Statistics (California State University, Hayward, USA).
• She is the designated person responsible for the investment management of
Pacific Dana Aman.
Name:
Position:
Experience/Qualifications:
Esther Ong Chen Woon (Date Of Appointment: 15 June 2000)
Manager, Investment
• She assists the Chief Investment Officer in the investment management of the
Funds. Prior to joining Pacific Mutual, Esther worked in an insurance company as
Assistant Manager in charge of portfolio management. She also carried out
research on companies listed in the KLSE.
• CFA charterholder (Association for Investment Management and Research, USA);
Master of Science in Investment Management (City University Business School,
London, UK); Bachelor of Science (Honours) in Insurance and Investment (City
University Business School, London, UK).
• She is the designated person responsible for the investment management of
Pacific Recovery Fund and Pacific Income Fund.
18
ALL ABOUT THE MANAGER - PACIFIC MUTUAL FUND BHD
Name:
Position:
Experience/Qualifications:
Robin Yeoh Yern Jin (Date Of Appointment: 2 January 2003)
Manager, Investment
• He assists the Chief Investment Officer in the investment management of the
Funds. Robin has been involved in the Malaysian capital markets since 1997. He
was previously with Meridian Asset Management where he helped manage more
than RM200 million in the Malaysian and Asia Pacific (ex Japan) portfolios. Prior
to his time with Meridian, he was an equities analyst with Credit Lyonnais
Securities Asia (CLSA) and RHB Research responsible for the motor and property
sectors. At CLSA, he also covered the non-bank financials, including the finance
and insurance companies, while providing back-up coverage of the banks.
• CFA charterholder (Association for Investment Management and Research, USA);
British Chevening Scholar; Master of Science in Economics (University of Nottingham,
UK); Bachelor of Science in Accounting and Finance (University of Warwick, UK).
• He is the designated person responsible for the investment management of
Pacific Pearl Fund and Pacific Dana KLSI.
POWER OF PACIFIC MUTUAL TO REMOVE/REPLACE TRUSTEE
The Trustee may be removed and another Trustee may be appointed by special resolution of the unitholders at a
unitholders’ meeting convened in accordance with the Deed.
The Management Company shall take all reasonable steps to replace a Trustee as soon as practicable after becoming
aware that:
• The Trustee has ceased to exist;
• The Trustee has not been validly appointed;
• The Trustee is not eligible to be appointed or to act as Trustee under section 99 of the Securities Commission Act 1993;
• The Trustee has failed or refused to act as Trustee in accordance with the provisions or covenants of the Deed or the
provisions of the Securities Commission Act 1993;
• A receiver is appointed over the whole or a substantial part of the assets or undertaking of the Trustee and has not
ceased to act under the appointment, or a petition is presented for the winding up of the Trustee (other than for the
purpose of and followed by a reconstruction, unless during or following such reconstruction the existing Trustee
becomes or is declared to be insolvent); or
• The Trustee is under investigation for conduct that contravenes the Trust Companies Act 1949, the Trustee Act 1949, the
Companies Act 1965 or any securities law.
19
ALL ABOUT THE MANAGER - PACIFIC MUTUAL FUND BHD
TRUSTEES OF THE FUNDS, THEIR DUTIES AND OBLIGATIONS
A Trustee serves mainly as the custodian of the Fund. The assets of the Funds are registered in the name of the respective
Trustees who function independently from Pacific Mutual. They exercise all due diligence and vigilance when carrying out
their functions and duties to safeguard the rights and interests of all unitholders. They are responsible to ensure that
Pacific Mutual performs its obligations in accordance with the provisions of the Deeds.
Below are the details of the Trustees of the respective Funds:
PACIFIC PREMIER FUND
Name Of Trustee:
Universal Trustee (Malaysia) Berhad (17540-D)
Address:
No. 1, Jalan Ampang, 3rd Floor, 50450 Kuala Lumpur
Date Of Incorporation:
5 March 1974
Authorised Capital:
RM5 million
Staff Strength:
36 as at 3 November 2003 (comprising 19 executive staff and 17 non-executive staff)
For details of key personnel, please refer below
Funds Under Trusteeship:
34 as at 3 November 2003
Board Of Directors:
Datuk Haji Burhanuddin bin Ahmad Tajudin
Y.A.M. Tunku Dato’ Seri Nadzaruddin Ibni Tuanku Ja’afar
Dato’ Francis Huang Chang Hsun
Putri Noor Shariza Binti Noordin Omar
Grace Yeoh Cheng Geok (Alternate Director to Putri Noor Shariza binti Noordin Omar)
Universal Trustee (Malaysia) Berhad (UTMB) has been involved in the unit trust industry as a trustee since 1994. Below are
the details of its key management staff:
■
Liew Kok Wah (General Manager cum Company Secretary)
He is the General Manager 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.
■
Punithamalar Velupillai (Manager)
She is the Manager and is an Associate 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.
■
Low Lai Chee (Assistant Manager)
She is the Assistant Manager and is an Associate Member of the Chartered Institute of Secretaries and Administrators,
England. Prior to her joining UTMB in 1994, she had more than 10 years of experience in nominee services with a whollyowned subsidiary of a public listed company. She is currently assisting in supervising the overall functions of UTMB.
20
TRUSTEES OF THE FUNDS, THEIR DUTIES AND OBLIGATIONS
■
Agnes Lai Yoke Ping (Senior Trust Officer)
She is the Senior Trust Officer and is an Associate Member of the Chartered Institute of Management Accountants,
England. Prior to her present appointment in 1996, she had 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 compliance division of unit trust funds and administrative
functions of UTMB.
■
Suresh Kumar (Legal Executive)
He is the Legal Executive. He joined UTMB in September 2000 and holds a law degree from Bond University, Australia.
He is responsible for the overall legal and compliance affairs of UTMB with the relevant authorities. Prior to joining
UTMB, he was a partner with an established law firm and was in charge of corporate matters, litigation, conveyancing
and the administration and management of the firm.
Financial Highlights
2002
RM
Paid-up Capital
Year Ended 31 December
2001
RM
2000
RM
500,000
500,000
500,000
Shareholders’ Fund
3,475,215
3,097,510
2,509,895
Turnover
3,466,082
2,953,420
2,771,031
Profit Before Taxation
1,232,705
867,600
940,928
881,705
587,615
622,901
Profit After Taxation
Delegation Of Share Custodial Functions
Share custodial functions are not delegated to any other parties.
21
TRUSTEES OF THE FUNDS, THEIR DUTIES AND OBLIGATIONS
PACIFIC PEARL FUND, PACIFIC DANA MURNI AND PACIFIC DANA KLSI
Name Of Trustee:
AmTrustee Berhad (163032-V)
Address:
22nd Floor, Bangunan AmBank Group, No. 55, Jalan Raja Chulan, 50200 Kuala Lumpur
Date Of Incorporation:
28 July 1987
Authorised Capital:
RM1 million
Staff Strength:
36 as at 3 November 2003 (comprising 15 executive staff and 21 non-executive staff)
For details of key personnel, please refer below
Funds Under Trusteeship:
17 as at 3 November 2003
Board Of Directors:
Fauziah binti Yacob
Amarjeet Kaur d/o Ranjit Singh
Pushparani d/o A Moothathamby
Dato’ Jaspal Singh s/o Sher Singh
Dato’ Syed Mohd Yusof bin Tun Syed Nasir (Independent Director)
Tuan Haji Mohd Idris bin Mohd Isa (Independent Director)
AmTrustee Berhad has been involved in the unit trust industry as a trustee since 1997. Below are details of its key
management staff:
■
Dato’ Jaspal Singh s/o Sher Singh (Chief Executive Officer cum Director)
He is a Fellow Member of the Association of Chartered Certified Accountants (FCCA) and has been with the AmBank
Group since October 1981, having served the Asset Administration, Internal Audit, Treasury Department,
Arab-Malaysian Investment Management Section (AMIM) and Share Registrar Unit. Besides heading AmTrustee Berhad,
he currently also heads the Custodian/Nominees Services (AmMerchant Bank Berhad).
■
Devinder Kaur (Manager)
She joined AmTrustee Berhad in November 2001. She graduated with a LLB (Hons) from the University of Liverpool
and was admitted as an Advocate and Solicitor to the High Court of Malaya in 1991. Prior to joining AmTrustee Berhad,
she was with AmMerchant Bank Berhad and held the position as Legal Counsel, Legal Department. She is currently
responsible for the overall legal and compliance affairs of AmTrustee Berhad.
■
Azlinda Abdul Manaf (Manager)
She holds a Bachelor of Arts with honours in Accounting and Finance from SouthBank University of London. Prior to
joining AmTrustee Berhad, she was with Pengkalen Securities as a Dealer’s Representative.
■
Laila Mujir (Manager)
She holds an Advanced Diploma in Business and Management from Swansea Institute of Higher Education and is
a member of Financial Markets Association (FMA). Prior to her appointment in AmTrustee Berhad, she served
Arab-Malaysian Group of Companies as a Manager in the Share Registrar Department, Organisation & Method
Department and headed the Corporate Sales Desk in Treasury Dealing.
■
Sharon Khaw Cheng Sim (Assistant Manager)
Prior to her appointment at AmTrustee Berhad, she was the Head of Share Margin Trading Unit at United Overseas
Bank (M) Bhd and before that, as Operation Assistant Manager at Inter-Pacific Securities Sdn Bhd. She once served
Arab-Malaysian Merchant Bank Berhad as a Marketing Officer.
22
TRUSTEES OF THE FUNDS, THEIR DUTIES AND OBLIGATIONS
Financial Highlights
2003
RM
Paid-up Share Capital
Year Ended 31 March
2002
RM
2001
RM
500,000
500,000
500,000
Shareholders’ Funds
2,471,589
2,262,373
1,786,990
Turnover
2,607,896
1,879,056
774,348
Profit Before Taxation
461,010
690,514
605,569
Profit After Taxation
209,216
475,383
432,800
Delegation Of Share Custodial Functions
AmTrustee Berhad has delegated the share custodial functions to AMMB Nominees (Tempatan) Sdn Bhd [AMMBN(T)SB]
to utilise AMMBN(T)SB information systems and to ensure real time notification of settlements and transfer of securities
and also to reduce the risks of settlement of securities.
AMMBN(T)SB, a fully-owned subsidiary of AmMerchant Bank Berhad and an Authorised Depository Member (ADM) of
Malaysian Central Depository Sdn Bhd (MCD), was set up to assist investment advisors, managers of large international
portfolios, lending banks and international custodians in the movement and management of cash and securities and
providing clients with real-time notification of settlements and reports tailored to clients’ requirements.
AMMBN(T)SB is equipped with an AS400 mainframe system with Investment Management System application designed by
KPMG Peat Marwick, an integrated and on-line system designed to meet clients’ operations. It is also currently using the
CAMRA 2000 system to further enhance their custodian functions.
23
TRUSTEES OF THE FUNDS, THEIR DUTIES AND OBLIGATIONS
PACIFIC DANA AMAN
Name Of Trustee:
Bumiputra-Commerce Trustee Berhad (167913-M)
Address:
D-0-6 Megan Phileo Promenade, No. 189 Jalan Tun Razak, 50400 Kuala Lumpur
Date Of Incorporation:
19 January 1988
Authorised Capital:
RM1 million
Staff Strength:
15 as at 3 November 2003 (comprising 8 executive staff and 7 non-executive staff)
For details of key personnel, please refer below
Funds Under Trusteeship:
Board Of Directors:
9 as at 3 November 2003 (including property trust fund)
Nik Hassan Nik Mohd (Chairman)
Dato’ Bhupatrai a/l Mansukhlal Premji
Datin Norhayati Hashim
Mohd Tahir Abdul Wahab
Mohd Badry Jaafar
A. Bakar Buyong
Zauyah Wan Chik
Bumiputra-Commerce Trustee Berhad has been involved in the unit trust industry as a trustee since 1998. Below are the
details of its key management staff:
■
Shahidah Hashim (General Manager)
The Company is now led by Shahidah Hashim, who assumed her present post in January 2002.
She was honoured with her BBA in Management from Kobe University, Japan, in 1976. She started service with Bank
Bumiputra Malaysia Berhad upon her return in the International Banking Division. Her first duties were to coordinate
the opening of the Bank’s Representative Office and subsequently the foreign branch of the Bank in Tokyo. She moved
on with work related to the opening of the Bank’s branches in various other places, such as New York, Los Angeles
and Bahrain. She was also involved in offshore credits, specifically Malaysian Government borrowings from the
international markets.
In mid 1980s, her foray into electronic banking started with a job in Information Technology Division taking care
of computer purchasing and contract administration. In 1988, she headed the Electronic Banking Department,
spearheading the introduction of electronic products and services of the Bank until 1992 when she moved to the
Consumer Banking area in charge of marketing of loans and deposits until the merger in 1999. Until October 2001, she
headed the Retail Marketing Department of the Retail Group of Bumiputra-Commerce Bank, in charge of the deposits
and payments services.
■
Ibrahim Hj Ismail (Manager Operations)
He served with Jabatan Pemegang Amanah Raya (Public Trustee) for 11 years. In 1990, he joined Bumiputra-Commerce
Trustee Berhad as a Junior Officer. He was promoted to Executive Officer in January 1992 and became Assistant
Manager in July 1995. He is in charge of operations and trust administration.
24
TRUSTEES OF THE FUNDS, THEIR DUTIES AND OBLIGATIONS
■
Azhar bin Musa (Accounts/Trust Executive)
He joined Bumiputra-Commerce Trustee Berhad on 24 July 2000. Before joining Bumiputra-Commerce Trustee Berhad,
he was attached to BBMB Factoring Berhad since mid 1985. His last position was Client Audit/Review Executive. Holding
a Diploma in Accountancy from UITM, he now serves the Company as Account/Trustee Executive.
■
Masrina Mat (Administration Officer)
She joined Bank Bumiputra Malaysia Berhad Group in 1980 with experience in credit information at head office and
branch operation. She joined Bumiputra-Commerce Trustee Berhad in 1993 as a Trust Clerk. In July 1994, she was
promoted to Administration Officer.
■
Khairun Mohd Nor (Legal and Trust Executive)
He holds a Bachelor of Laws (LLB) (Hons) from International Islamic University of Malaysia. Before joining BumiputraCommerce Trustee Berhad in November 2001 as Legal Executive, he has worked in legal firms and was attached to the
Session Court of Malaya, Kuala Lumpur, thus gaining experiences in Malaysia Legal System and knowledge of other
related legal matter.
■
Farriz Hanan Jantan (Marketing and Trust Executive)
She holds a Bachelor of Accountancy from Mara University of Technology (UiTM). Prior to joining Bumiputra-Commerce
Trustee Berhad as Trust and Marketing Executive in February 2001, she served at Winlite Construction Sdn Bhd as a
Project Accounts Executive.
Financial Highlights
2002
RM
Paid-up Capital
Year Ended 31 December
2001
RM
2000
RM
500,000
500,000
500,000
Shareholders’ Funds
2,611,879
2,350,619
2,269,806
Turnover
1,265,370
1,265,398
983,893
Profit Before Taxation
384,086
140,813
261,253
Profit After Taxation
261,260
80,813
186,283
Delegation Of Share Custodial Functions
Bumiputra-Commerce Trustee Berhad has delegated the share custodial functions to Bumiputra-Commerce Nominees (T)
Sdn Bhd [BCN(T)SB] to utilise BCN(T)SB information systems and to ensure real time notification of settlements and
transfer of securities and also to reduce the risks of settlement of securities.
BCN(T)SB, a fully-owned subsidiary of Bumiputra-Commerce Bank Berhad and an Authorised Depository Member (ADM)
of Malaysian Central Depository Sdn Bhd (MCD), was set up to assist investment advisors, managers of large international
portfolios, lending banks and international custodians in the movement and management of cash and securities and
providing clients with real-time notification of settlements and reports tailored to clients’ requirements.
BCN(T)SB is equipped with an AS400 mainframe system with Custodian and Nominees System application designed by AIT
Sdn Bhd, a subsidiary of Patimas Group Berhad, an integrated and online system designed to meet clients’ operations.
25
TRUSTEES OF THE FUNDS, THEIR DUTIES AND OBLIGATIONS
PACIFIC MILLENNIUM FUND, PACIFIC RECOVERY FUND, PACIFIC INCOME FUND AND PACIFIC
PROGRESSIVE FUND
Name Of Trustee:
BHLB Trustee Berhad (313031-A)
Address:
Ground & 1st Floor, Rockwills Centre, No. 24, Jalan 14/22, Right Angle, Seksyen 14,
46100 Petaling Jaya, Selangor Darul Ehsan
Date Of Incorporation:
25 August 1994
Issued/Paid-up Capital:
Authorised capital of 500,000 shares of RM10.00 each
350,000 shares are issued (Paid up RM5 each)
Staff Strength:
20 as at 3 November 2003 (comprising 15 executive staff and 5 non-executive staff)
For details of key personnel, please refer below
Funds Under Trusteeship:
16 funds as at 3 November 2003
Board Of Directors:
Dato’ Seri Goh Eng Toon
Dato’ (DR) Stephen Yeap Leong Huat
Yeap Lam Yang
Johari Low Abdullah @ Low Han Hing
Tan Leng Hock
Saw Leong Aun
BHLB Trustee Berhad has been involved in the unit trust industry as a trustee since 1996. Below are the details of its key
management staff:
■
Joshua Lim (Chief Executive Officer)
He holds a Masters in Business Administration from Universiti Putra Malaysia and a Bachelor of Law from the University
of London. He is an experienced adviser in the Trust Industry and one of the leading promoter of estate planning tools.
He has been involved in the Trust and Legal Services Industry since 1992. He has also attended the Malaysian Unit Trust
Administration Course organised by the Federation of Malaysian Unit Trust Managers and the Securities Institute of
Education Australia. He is responsible for Marketing and Operations and oversees the Legal, Trust Administration,
Securities and Investment Divisions of the Trustee.
■
Jeslin Ng (Manager of Finance and Operations Department)
She has over eight years’ experience in accounting and has LCCI qualification. She is responsible for finance and
operations and supervises the development of systems and methods and all internal control procedures. She also
monitors the clients’ accounts and is responsible for monitoring investment portfolio and performance of funds under
management.
■
Law Oi Meng (Assistant Manager of Securities and IT Department)
She holds an Advance Diploma in Computer Studies and has over four years’ working experience in development and
implementation of IT system. She is responsible for planning and implementing systems to support the smooth flow of
information and processes, analysing and developing systems and sourcing software and hardware for the Company.
■
Azida binti Abdul Aziz (Securities Officer)
She supervises the operations in the Securities Department. She was attached to a trustee firm for one-and-a-half years
as Accounts Clerk in Operations and Settlement Department. She is responsible for the administration and smooth
operations of the Securities Department.
26
TRUSTEES OF THE FUNDS, THEIR DUTIES AND OBLIGATIONS
■
Stanley Tan (Senior Legal Executive)
He graduated from the University of London with an LLB (Honours) in 1997 and has obtained the Certificate in Legal
Practice in 1999. He was formerly attached to a legal firm in Kuala Lumpur and has experience in conveyancing matters.
He is responsible for legal documentation, trust administration and certain corporate matters.
Financial Highlights
2002
RM
Year Ended 31 December
2001
RM
2000
RM
Paid-up Capital
1,750,000
1,750,000
1,750,000
Shareholders’ Funds
1,751,427
1,494,545
1,041,816
Turnover
2,209,314
1,469,653
1,237,356
Profit Before Taxation
473,307
500,729
385,324
Profit After Taxation
319,882
452,729
383,024
Delegation Of Share Custodial Functions
Share custodial functions are not delegated to any other parties.
27
TRUSTEES OF THE FUNDS, THEIR DUTIES AND OBLIGATIONS
WHAT ARE THE TRUSTEES’ RESPONSIBILITIES?
The Trustees have agreed willingly to assume all their obligations under the respective Deeds and all written laws and
Securities Commission’s Guidelines which cover the following:
• Take into custody the investments of the respective Funds and hold the investments in trust for the unitholders;
• Ensure that the Manager operates and administers the Funds in accordance with the provisions of the respective Deeds,
Securities Commission’s Guidelines and acceptable business practice within the unit trust industry;
• Immediately notify the Securities Commission of any irregularity or breach of the provisions of the Deeds, Securities
Commission’s Guidelines and any other matters which in the Trustees’ opinions may indicate that the interests of
unitholders are not served;
• Exercise due care, skill, diligence and vigilance in carrying out their functions and duties, in actively monitoring the
administration of the Funds by the Manager and in safeguarding the interests of unitholders;
• Maintain, or cause the Manager to maintain, proper accounting records in relation to those rights and interests, and of
all transactions effected by the Manager on account of the Funds; and
• Require that the accounts be audited at least annually and that those accounts be sent to the unitholders within two
months from the end of the financial year.
RETIREMENT AND REMOVAL OF TRUSTEES
The Trustees may retire by giving 12 months’ notice to the Manager or any shorter period as the Manager and the
respective Trustees may agree upon. Upon receipt of a notice in writing to that effect, the Manager may by the Deeds
appoint some other corporation as the new Trustee for the unitholders as approved by the Securities Commission. The
Trustees may be removed by special resolution of the unitholders at a unitholders’ meeting convened in accordance with
the Deeds. The Trustees shall retire if they go into liquidation or receivers have been appointed over the undertaking of
the respective Trustees or the Trustees have ceased to exist.
REMOVAL OF THE MANAGER BY THE TRUSTEES
The Manager may retire, if so requested by the Trustees, on the following grounds:
• The Manager is in fundamental breach of its duties and obligations under the respective Deeds;
• The Manager goes into liquidation or a receiver has been appointed over the undertaking of the Manager or the
Manager has ceased to carry on business;
• The Manager has failed or neglected to carry out its duties to the satisfaction of the Trustees and the Trustees consider
that it would be in the interest of unitholders for them to do so; and
• If required to do so by the Trustees following a special resolution passed at a unitholders’ meeting duly convened in
accordance with the respective Deeds.
TRUSTEES’ STATEMENT OF RESPONSIBILITY
The Trustees are willing to assume the position and all obligations that come with it under the Deeds, all relevant written
laws and rules of laws, and are also willing to provide indemnity to the Manager for the benefit of unitholders of the
respective Funds against all claims, damages, losses, costs and expenses suffered or incurred by the Funds due to or arising
from the Trustees’ wilful defaults or negligence in the performance of their obligations and duties.
28
TRUSTEES OF THE FUNDS, THEIR DUTIES AND OBLIGATIONS
SYARIAH ADVISERS
The Syariah Advisers for Pacific Mutual’s Syariah-based Funds are as follow:
• BIMB Securities Sdn Bhd (BSSB) for Pacific Dana Aman
• Islamic Banking and Finance Institute Malaysia Sdn Bhd (IBFIM) for Pacific Dana Murni and Pacific Dana KLSI.
Their role, power and duties are as follow:
• Ensure that the Syariah-based Funds are managed and administered in accordance with the Syariah principles;
• Provide expertise and guidance for the Syariah-based Funds in all matters relating to the Syariah principles, including
on the Syariah-based Funds’ Deed and Prospectus, their structures and investments, and other operational and
administrative matters;
• Consult the Securities Commission who may consult the Syariah Advisory Council where there is any ambiguity or
uncertainty as to an investment, instrument, system, procedure and/or process;
• Comply, and ensure that the Syariah-based Funds comply, with any guideline, ruling or decision issued by the Securities
Commission;
• Act with due care, skill and diligence in carrying out its duties and responsibilities;
• Responsible for scrutinising the Syariah-based Funds’ compliance report as provided by the compliance officer and
transaction report provided by or duly approved by the Trustees to ensure that the Syariah-based Funds’ investments
are in line with Syariah principles;
• Prepare a report to be included in the Syariah-based Funds’ interim and annual reports certifying that the Syariah-based
Funds have been managed and administered in accordance with Syariah principles;
• Vet and advise on the promotional materials of the Syariah-based Funds; and
• Assist and attend to any ad-hoc meeting called by the Securities Commission and/or any other relevant authority.
MORE ABOUT BSSB
BSSB, a stockbroking subsidiary of BIMB Holdings Bhd, was incorporated on 21 February 1994. Its current authorised
capital is RM250 million, and its issued and paid-up capital is RM100 million. As at 3 November 2003, the company has a
staff force of 30, comprising 19 executive and 11 non-executive staff. There is only one fund under its supervision.
Shareholders:
BIMB Securities (Holdings) Sdn Bhd
(Wholly-owned subsidiary of BIMB Holdings Bhd)
Permodalan Nasional Berhad (PNB)
51%
49%
Board Of Directors:
Datuk Burhanuddin Ahmad Tajudin
Dato’ Dr. Abdul Halim Haji Ismail
Dato’ Idris Md Tahir
Dato’ Mohamad Shafie
Dato’ Dr. Ismail Sa’ad
Mustapha Hamat
-
Management Committee:
Dato’ Dr. Abdul Halim Haji Ismail
Dato’ Idris Md Tahir
Mohd Ghazalli Abu Bakar
- Chairman
- Member/Secretary
- Member
Chairman
Chief Executive Officer/Executive Director Dealing
Executive Director Operations/Company Secretary
Non-Executive Director
Non-Executive Director
Non-Executive Director
Profile Of Management Members:
Dato’ Dr. Abdul Halim Haji Ismail has been with BSSB since its inception in 1994. For his secondary education he went to
Arabic/Religious and English schools. He obtained BA Hons. Degree in Economics from University of Malaya in 1965 and
Doctor of Philosophy from University of Oxford, England, in 1970. He began his career in 1970 as an academician and later
served as Dean in the Faculty of Economics, Universiti Kebangsaan Malaysia. In 1977, he joined Bank Bumiputra Malaysia
Berhad as its Chief Economist. When BIMB was formed in 1983, he was appointed its first Managing Director. While with
the Bank, he became Chairman of the Board of Directors of its subsidiaries, including Syarikat Takaful Malaysia Sdn Bhd
and Al-Wakalah Nominees Sdn Bhd. He is currently a member of the Syariah Advisory Councils at Bank Negara Malaysia,
Securities Commission and Labuan Offshore Financial Services Authority. He also presently sits on the Boards of Directors
of a few listed companies.
Dato’ Dr. Abdul Halim Haji Ismail is the designated person in-charge of Pacific Dana Aman.
29
SYARIAH ADVISERS
Dato’ Idris Md. Tahir is currently the Executive Director Operations of BSSB. He is a Director of BIMSEC Nominees
(Tempatan) Sdn Bhd and BIMSEC Nominees (Asing) Sdn Bhd (wholly-owned subsidiary of BSSB). He is also the Company
Secretary to BSSB’s group of companies which includes another wholly-owned subsidiary, BIMSEC Asset Management Sdn
Bhd. Prior to joining BSSB in 1995, he was attached to Bank Islam Malaysia Berhad (BIMB) as the pioneer staff and served
at various positions for 14 years within BIMB and its subsidiary companies. He is an accountant by profession and had
qualified as Chartered Institute of Cost and Management Accountant (CIMA), United Kingdom in 1982 and was conferred
the Fellow Membership in 1995. He is a member of the Malaysian Institute of Accountants (MIA) and Institute of Internal
Auditors (IIA).
Mohd Ghazalli Abu Bakar is the Chief Dealer and Head of Institutional Dealing of BSSB. He graduated from Western Illinois
University, USA with BBA and MBA. He joined Bank Islam Malaysia Berhad in 1987. Prior to joining Bank Islam Malaysia
Berhad, he served short stints with Bank of Commerce (M) Berhad and MARA Institute of Technology. From 1991 to 1994,
he was a dealer in the Money Market and FOREX Department of the Bank. He has been with BSSB since its inception
in 1994.
MORE ABOUT IBFIM
IBFIM was incorporated on 13 April 1995 and has a paid-up capital of RM10,000,001.00. Its establishment is in line with
Malaysia’s target to become a regional and international Islamic banking and takaful centre. As at 3 November 2003, the
company has a staff force of 40 and there are a total of 30 funds under its supervision.
Shareholders:
Bank Negara Malaysia (Special Shareholder)
BIMB Holdings Berhad
AmMerchant Bank Berhad
Malayan Banking Berhad
Alliance Bank Malaysia Berhad
Affin Bank Berhad
Bank Muamalat Malaysia Berhad
EON Bank Berhad
Hong Leong Bank Berhad
Public Bank Berhad
RHB Bank Berhad
Southern Bank Berhad
Southern Finance Berhad
Takaful Nasional Sdn Bhd
Board Of Directors:
Tan Sri Dato’ Sri Dr Zeti Akhtar Aziz
Tan Sri Dato’ Azman Hashim
Datuk Amirsham A Aziz
Dato’ Ahmad Tajudin Abdul Rahman
Dato’ Mohd Fadzli Yusof
Dato’ Fadzil Yusoff
Bakarudin Ishak
Aminuddin Md Desa
Mustapha Hamat
- Chairman
- Chief Executive Officer/Director
30
SYARIAH ADVISERS
Key Management Staff:
Mustapha Hamat
Shamshir Alam S.M. Khairuddin
Ahmad Sanusi Husain
Ahmad Mazlan Zulkifly
Mohamad Fauzi Md Khair
Roslan Abd Razak
-
Chief Executive Officer
Director, Finance & Administration
Acting Director, Training & Professional Development
Director, Takaful & Special Projects
Acting Director, Education
Director, Business Advisory
Syariah Advisory Team:
Mustapha Hamat
Mohd Bakir Haji Mansor
Najib Hj Mohd Salleh
Mohammad Khairi Saat
Wan Jemizan Wan Deraman
Mohd Nasir Ismail
-
Chief Executive Officer
Internal Research Fellow
Internal Research Fellow
Manager
Assistant Manager
Assistant Manager
Designated Person For Pacific Dana Murni And Pacific Dana KLSI:
The designated person responsible for Syariah Advisory of the Funds is Mohd Bakir Haji Mansor. He was appointed as one
of the Syariah Advisory Team members in 1995. Presently, he is a member of the Syariah Supervisory Councils of Bank Islam
Malaysia Berhad (BIMB), Syarikat Takaful Malaysia Berhad (STMB) and ASEAN Retakaful International (L) Ltd (ARIL). Prior
to this, he was the Syariah Coordinator of BIMB and the Secretary of the Syariah Supervisory Councils of BIMB, STMB
and ARIL.
Before joining Bank Islam in 1984, Mohd Bakir served at the National Council for Islamic Religious Affairs in the Prime
Minister’s Department for 13 years. He was also one of the Chief Assistant Directors at the Islamic Research Centre for four
years. He holds a Cambridge Oversea School Certificate and Shahada Ulya from Kolej Islam Malaya.
31
SYARIAH ADVISERS
MORE INFORMATION ABOUT THE FUNDS
NON-SYARIAH-BASED FUNDS
WHY INVEST IN PACIFIC PREMIER FUND?
WHAT IS THE FUND’S INVESTMENT OBJECTIVE?
The Fund aims to achieve strong long-term capital growth with a consistently attractive income. A strategy has been set
up to create a balanced portfolio of equity securities with capital growth prospects and high income yielding and fixed
interest securities.
Any changes to the Fund’s investment objective would require unitholders’ approval.
Distribution policy: By way of income distribution, if any, once a year.
Unit split: Once a year, if any.
Type of fund: The Fund is a growth and income fund.
Category of fund: The Fund is an equity fund.
WHO SHOULD CONSIDER INVESTING?
Investors seeking current income returns potentially higher than fixed deposit interest rates and moderate capital growth
with low level risk over the medium to long term.
WHAT ARE THE LIKELY BENEFITS?
The Fund primarily invests in securities that provide capital growth and high income prospects by selecting a portfolio of
securities which is equally spread among growth and value stocks. The Fund allows investors the opportunity to benefit
from a consistently reasonable income combined with prospects for capital growth.
RISK FACTORS
Pacific Premier Fund is subject to several risk factors including the following (please refer to pages 5 to 7 for descriptions
of these and other risk factors as well as page 79 for the risk management strategies and techniques):
• Market risk
• Company specific risk
• Interest rate risk
• Credit risk
• Futures risk
WHAT IS THE FUND’S INVESTMENT STRATEGY?
To attain the Fund’s objective of providing investors with a consistently reasonable income as well as capital appreciation,
the Fund has significantly higher equity investment in companies with reasonable dividend yields and above average
earnings growth potential. As such, the Manager selects a portfolio which adheres to fundamental valuations from sectors
which are expected to grow higher than the market growth.
Cash &
Liquid
Assets
13.91%
Portfolio Structure
(as per the annual report
Fixed Income
& Other Debt
Securities
11.98%
Quoted Equity
Securities
71.75%
Derivative
Instruments
2.36%
for the financial year ended
30 September 2003)
Launch Date : 10 August 1995
32
MORE INFORMATION ABOUT THE FUNDS
Asset Allocation
The Fund may invest up to 80% (minimum equity allocation is 40%) of its NAV in equities and equity-related securities but
this may be reviewed from time to time depending on the economic and stock market conditions. Liquid assets will be
maintained at all times at a minimum of 5% of the Fund’s NAV.
While the maximum limit for equity investments is 80%, actual asset allocation varies according to the Manager’s
investment outlook and investment strategies after taking into consideration the prevailing market conditions. Based on
the risk-return profile of the Fund, the neutral asset allocation (or long-term average asset allocation) is expected to be
60% in equities and 40% in fixed income securities and liquid assets.
Please also refer to page 79.
• Equity Investment Strategy
The Manager aims to identify companies adhering to fundamental valuations and offer prospects of above average
earnings growth. Diversification into different industries will be implemented.
The investment strategy is based on a disciplined “top-down” approach to asset allocation and sector allocation, using
macroeconomic analysis, market analysis and industry analysis. Stock selection techniques are based on a “bottom-up”
approach using business analysis and security valuation analysis. There is significant overlap between the various disciplines
governing these processes, with strong interaction between the determination of asset allocation and stock selection.
• Fixed Income Investment Strategy
The Manager’s strategy hinges on the need for a well-diversified portfolio and focuses on the credit qualities of
securities in the portfolio. The fixed income portfolio construction process is research driven and based on
macroeconomic analysis, interest rate analysis, credit analysis and yield spread analysis. Other than the development of
a broad asset allocation model, contributions will be made via active management to capitalise on changes in interest
rates, inter-sector yield spreads and yield spreads of specific debt securities.
PERMITTED INVESTMENTS
Pacific Premier Fund may invest in the following permitted investments:
• Securities traded on the KLSE and any other market considered as an Eligible Market.
• Fixed income securities traded in or under the rules of an Eligible Market.
• Fixed income securities issued by Bank Negara Malaysia, the Malaysian Government and government related agencies
such as Danamodal Nasional Berhad, Pengurusan Danaharta Nasional Berhad, Khazanah Nasional Berhad and
Cagamas Berhad.
• Unlisted fixed income securities which are either bank-guaranteed or rated by Rating Agency Malaysia Bhd, Malaysia
Rating Corporation Bhd or other recognised rating agencies.
• Liquid assets such as Malaysian currency deposits and money market instruments with commercial banks, finance
companies, merchant banks, discount houses and Bank Islam Malaysia Berhad including Investment Certificates,
placement of monies at call with discount houses, and any other instrument capable of being converted into cash within
seven days as may be approved by the Trustee.
• Futures contracts traded in futures markets of an exchange approved under the Futures Industry Act 1993, only for
hedging purposes. These include:
- KLSE Composite Index futures contracts traded on Malaysian Derivatives Exchange (MDEX);
- 3-month KLIBOR Interest Rates futures contracts traded on MDEX; and
- Any new derivatives instruments introduced by MDEX.
• Any other investments as may be agreed upon by the Manager and the Trustee and permitted by the Securities
Commission’s Guidelines from time to time.
33
MORE INFORMATION ABOUT THE FUNDS
INVESTMENT RESTRICTIONS AND LIMITS
The purchase of investments shall be subject to the following restrictions:
Spread Of Investments On Single Issuer
• The value of the Fund’s holding of the share capital of any single issuer must not exceed 10% of the NAV of the Fund
or any other limit set by the Securities Commission.
• The value of the Fund’s holding of the securities of, and the securities relating to, any single issuer must not exceed 15%
of the NAV of the Fund or any other limit set by the Securities Commission.
Spread Of Investments On Groups Of Companies
• The value of the Fund’s holding of the securities of, and the securities relating to, any group of companies shall not
exceed 20% of the NAV of the Fund or any other limit set by the Securities Commission.
• The value of the Fund’s holding in the securities of and the securities relating to, any group of companies may exceed
20% of the Fund’s NAV provided there are acceptable reasons for exceeding the limit. In this regard, the Manager shall
notify the Securities Commission and the Trustee immediately of reasons for exceeding the limit. Where reasons are not
considered satisfactory, the Securities Commission and/or the Trustee may direct the Manager to comply strictly with the
20% investment restriction.
Concentration Of Investments
• The Fund’s holding of any class of security of any single issuer must not exceed 10% of the security issued or any other
limit set by the Securities Commission.
Permissible Grade For Fixed Income Investments
• The Fund’s holding of any single issuer must be rated at least BBB (or equivalent) and above or short-term rating of P3
and above by Rating Agency Malaysia Bhd (RAM) or Malaysia Rating Corporation Bhd (MARC).
Futures Contracts
• The Fund’s net market exposure owing to its futures contract positions must not exceed the Fund’s NAV.
The investment restrictions and limits must be complied with at all times based on the most up-to-date value of the Fund’s
investments. However, a maximum of 5% allowance in excess of the restrictions is permitted where the restriction is
breached through appreciation or depreciation of the NAV of the Fund. The Manager will take all necessary steps and
actions to rectify any breach within reasonable period of not more than three months from the date of the breach.
The Fund shall not borrow in connection with its activities or lend any of its cash or investments unless permitted by the
Guidelines or other laws or regulations pertaining to unit trusts.
34
MORE INFORMATION ABOUT THE FUNDS
HOW IS THE FUND’S PERFORMANCE?
Performance Chart
(as per the annual report for the financial year ended 30 September 2003)
Launch Date : 10 August 1995
Performance Benchmark : KLSE Composite Index (KLCI)*
60
Return (%)
40
20
0
-20
-40
-60
Pacific Premier Fund
30.09.2003
31.07.2002
31.05.2001
31.03.2000
29.01.1999
28.11.1997
30.09.1996
10.08.1995
-80
KLCI
From 10 August 1995 To 30 September 2003
Performance Data
1 Year’s Period
01.10.2002
to
30.09.2003
Total
Average
Return
Annual
Return
3 Years’ Period
01.10.2000
to
30.09.2003
Total
Average
Return
Annual
Return
5 Years’ Period
01.10.1998
to
30.09.2003
Total
Average
Return
Annual
Return
Since Launch
10.08.1995
to
30.09.2003
Total
Average
Return
Annual
Return
Pacific Premier Fund
14.17%
14.17%
17.34%
5.78%
112.17%
22.43%
35.19%
4.32%
KLSE Composite Index
14.96%
14.96%
2.79%
0.93%
96.36%
19.27%
(30.56%)
(3.75%)
* The benchmark for the Fund is widely used and publicly available from newspaper publications such as The Star and
News Straits Times on a daily basis. It would also be published as a comparison against the Fund’s total return on a
periodic basis, in the Fund’s annual and interim reports and Pacific Mutual’s quarterly Funds’ publication, Close Watch.
Note: All figures pertaining to the Fund’s return were extracted from Standard & Poor’s Workstation System.
Investors should consider the fees and charges involved. The price of units and distributions payable, if any, may go
up as well as down.
Past performance of the Fund is not an indication of its future performance.
35
MORE INFORMATION ABOUT THE FUNDS
Distribution/Unit Split
Year Ended 30 September
2003
Source Of Income For Distribution:
Interest income
Dividend income
Profit on sale of quoted investments
Previous year’s realised gains
Distribution equalisation
2002
2001
RM’000
%
RM’000
%
RM’000
%
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Gross Distribution Per Unit (sen)
–
–
–
Distribution Per Unit:
Taxable income (sen)
Malaysian taxation (sen)
Non-allowable expenses (sen)
Non-taxable income (sen)
Distribution equalisation (sen)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Net Distribution Per Unit (sen)
–
–
–
Unit Split Ratio
6:100
–
8:100
NAV per unit (RM) *
Cum-unit split and distribution
Ex-unit split and distribution
0.6519
0.6150
0.5710
0.5710
0.53
0.50
* With effect from 29 July 2002, the NAV per unit is quoted at four decimal places.
Past earnings or the Fund’s distributions record is not a guarantee or a reflection of the Fund’s future
earnings/distributions.
36
MORE INFORMATION ABOUT THE FUNDS
Portfolio Turnover Explanation
The portfolio turnover ratio for the financial year ended 30 September 2003 is 0.97 times (2002: 0.58 times). The portfolio
turnover was higher mainly due to an increase in average transactional value of 50.20% i.e. RM122.56 million in 2002 to
RM184.09 million in 2003 compared to 9.47% decrease in the average NAV i.e. RM210.17 million in 2002 to RM190.27
million in 2003. Please refer to page (iii) for definition on portfolio turnover ratio (PTR).
Investment Highlights
Financial Year Ended
30 September 2001
30 September 2002
30 September 2003
Top 5 Equity Securities (Malaysia)
1.
United Malacca Bhd
2.
Carlsberg Brewery Malaysia Bhd
4.02
3.
Fraser & Neave Holdings Bhd
3.40
4.
AMMB Holdings Bhd
3.30
5.
Gamuda Bhd
2.93
1.
IOI Corporation Bhd
4.65
2.
AMMB Holdings Bhd
3.95
3.
Commerce Asset-Holding Bhd
3.81
4.
Resorts World Bhd
3.56
5.
Fraser & Neave Holdings Bhd
3.16
1.
Malaysia International Shipping Corporation Bhd - F
7.14
2.
Malayan Banking Bhd
5.52
3.
Maxis Communications Bhd
4.44
4.
AMMB Holdings Bhd
4.22
5.
AMFB Holdings Bhd - F
3.37
Financial Year Ended
30 September 2001
30 September 2002
30 September 2003
% of NAV
Top 3 Unquoted Corporate Bonds
4.59
% of NAV
1.
Genting Sanyen Power Sdn Bhd
1.65
2.
PLUS Bhd
1.15
3.
Tenaga Nasional Bhd
1.10
1.
Tenaga Nasional Bhd
3.71
2.
Hong Leong Industries Bhd
3.34
3.
Genting Sanyen Power Sdn Bhd
1.57
1.
Tenaga Nasional Bhd
3.46
2.
Hong Leong Industries Bhd
3.04
3.
Divine Vista Sdn Bhd
2.80
37
MORE INFORMATION ABOUT THE FUNDS
WHY INVEST IN PACIFIC PEARL FUND?
WHAT IS THE FUND’S INVESTMENT OBJECTIVE?
The Fund aims to achieve maximum capital growth over a medium to long-term period by investing mainly in small to
medium-sized companies that have excellent prospects for growth.
Any changes to the Fund’s investment objective would require unitholders’ approval.
Distribution policy: By way of income distribution, if any, once a year.
Unit split: Once a year, if any.
Type of fund: The Fund is a growth fund.
Category of fund: The Fund is an equity (small cap) fund.
WHO SHOULD CONSIDER INVESTING?
Investors seeking high capital growth of small and medium-sized companies with excellent growth potential over the
medium to long term.
WHAT ARE THE LIKELY BENEFITS?
The Fund invests mainly in small to medium-sized companies that have good prospects for growth. The Fund focuses on
companies with paid-up capital of RM300 million and below which the Manager believes can offer better prospects for
growth than larger companies. The Fund allows investors the opportunity to benefit from potential capital growth over
a medium to long-term period.
RISK FACTORS
Pacific Pearl Fund is subject to several risk factors including the following (please refer to pages 5 to 7 for descriptions of
these and other risk factors as well as page 79 for the risk management strategies and techniques):
• Market risk
• Company specific risk
• Interest rate risk
• Credit risk
• Futures risk
WHAT IS THE FUND’S INVESTMENT STRATEGY?
To achieve the Fund’s objective of attaining maximum capital growth over a medium to long-term period, the Fund’s
portfolio has significantly higher equity investments in companies with paid-up capital of RM300 million and below which
have above average earnings growth prospects. These companies could also have the potential of becoming blue chips in
the future.
Derivative
Instruments
0.13%
Portfolio Structure
Loan
Stocks
0.43%
Quoted
Equity
Securities
72.36%
Fixed
Income &
Other Debt
Securities
7.97%
(as per the annual report
for the financial year ended
31 March 2003)
Launch Date : 6 January 1997
Cash &
Liquid
Assets
19.11%
38
MORE INFORMATION ABOUT THE FUNDS
Asset Allocation
The Fund may invest up to 85% (minimum equity allocation is 40%) of its NAV in equities and equity-related securities but
this may be reviewed from time to time depending on the economic and stock market conditions. Liquid assets will be
maintained at all times at a minimum of 5% of the Fund’s NAV.
While the maximum limit for equity investments is 85%, actual asset allocation varies according to the Manager’s
investment outlook and investment strategies after taking into consideration the prevailing market conditions. Based on
the risk-return profile of the Fund, the neutral asset allocation (or long-term average asset allocation) is expected to be
65% in equities and 35% in fixed income securities and liquid assets.
Please also refer to page 79.
• Equity Investment Strategy
The Manager aims to identify companies with a paid-up capital of RM300 million and below which offer above average
earnings growth prospects. Diversification into different industries will be implemented.
The investment strategy is based on a disciplined “top-down” approach to asset allocation and sector allocation, using
macroeconomic analysis, market analysis and industry analysis. Stock selection techniques are based on a “bottom-up”
approach using business analysis and security valuation analysis. There is significant overlap between the various disciplines
governing these processes, with strong interaction between the determination of asset allocation and stock selection.
• Fixed Income Investment Strategy
The Manager’s strategy hinges on the need for a well-diversified portfolio and focuses on the credit qualities of
securities in the portfolio. The fixed income portfolio construction process is research driven and based on
macroeconomic analysis, interest rate analysis, credit analysis and yield spread analysis. Other than the development of
a broad asset allocation model, contributions will be made via active management to capitalise on changes in interest
rates, inter-sector yield spreads and yield spreads of specific debt securities.
PERMITTED INVESTMENTS
Pacific Pearl Fund may invest in the following permitted investments:
• Securities traded on the KLSE and any other market considered as an Eligible Market.
• Fixed income securities traded in or under the rules of an Eligible Market.
• Fixed income securities issued by Bank Negara Malaysia, the Malaysian Government and government related agencies such
as Danamodal Nasional Berhad, Pengurusan Danaharta Nasional Berhad, Khazanah Nasional Berhad and Cagamas Berhad.
• Unlisted fixed income securities which are either bank-guaranteed or rated by Rating Agency Malaysia Bhd, Malaysia
Rating Corporation Bhd or other recognised rating agencies.
• Liquid assets such as Malaysian currency deposits and money market instruments with commercial banks, finance
companies, merchant banks, discount houses and Bank Islam Malaysia Berhad including Investment Certificates,
placement of monies at call with discount houses, and any other instrument capable of being converted into cash within
seven days as may be approved by the Trustee.
• Futures contracts traded in futures markets of an exchange approved under the Futures Industry Act 1993, only for
hedging purposes. These include:
- KLSE Composite Index futures contracts traded on Malaysian Derivatives Exchange (MDEX);
- 3-month KLIBOR Interest Rates futures contracts traded on MDEX; and
- Any new derivatives instruments introduced by MDEX.
• Any other investments as may be agreed upon by the Manager and the Trustee and permitted by the Securities
Commission’s Guidelines from time to time.
39
MORE INFORMATION ABOUT THE FUNDS
INVESTMENT RESTRICTIONS AND LIMITS
The purchase of investments shall be subject to the following restrictions:
Spread Of Investments On Single Issuer
• The value of the Fund’s holding of the share capital of any single issuer must not exceed 10% of the NAV of the Fund
or any other limit set by the Securities Commission.
• The value of the Fund’s holding of the securities of, and the securities relating to, any single issuer must not exceed 15%
of the NAV of the Fund or any other limit set by the Securities Commission.
Spread Of Investments On Groups Of Companies
• The value of the Fund’s holding of the securities of, and the securities relating to, any group of companies shall not
exceed 20% of the NAV of the Fund or any other limit set by the Securities Commission.
• The value of the Fund’s holding in the securities of and the securities relating to, any group of companies may exceed
20% of the Fund’s NAV provided there are acceptable reasons for exceeding the limit. In this regard, the Manager shall
notify the Securities Commission and the Trustee immediately of reasons for exceeding the limit. Where reasons are not
considered satisfactory, the Securities Commission and/or the Trustee may direct the Manager to comply strictly with the
20% investment restriction.
Concentration Of Investments
• The Fund’s holding of any class of security of any single issuer must not exceed 10% of the security issued or any other
limit set by the Securities Commission.
Permissible Grade For Fixed Income Investments
• The Fund’s holding of any single issuer must be rated at least BBB (or equivalent) and above or short-term rating of P3
and above by Rating Agency Malaysia Bhd (RAM) or Malaysia Rating Corporation Bhd (MARC).
Futures Contracts
• The Fund’s net market exposure owing to its futures contract positions must not exceed the Fund’s NAV.
The investment restrictions and limits must be complied with at all times based on the most up-to-date value of the Fund’s
investments. However, a maximum of 5% allowance in excess of the restrictions is permitted where the restriction is
breached through appreciation or depreciation of the NAV of the Fund. The Manager will take all necessary steps and
actions to rectify any breach within reasonable period of not more than three months from the date of the breach.
The Fund shall not borrow in connection with its activities or lend any of its cash or investments unless permitted by the
Guidelines or other laws or regulations pertaining to unit trusts.
40
MORE INFORMATION ABOUT THE FUNDS
HOW IS THE FUND’S PERFORMANCE?
Performance Chart
(as per the annual report for the financial year ended 31 March 2003)
Launch Date : 6 January 1997
Performance Benchmark : KLSE Emas Index (Emas)*
40
20
Return (%)
0
-20
-40
-60
-80
Pacific Pearl Fund
31.03.2003
31.03.2002
31.03.2001
31.01.2000
31.01.1999
31.01.1998
06.01.1997
-100
EMAS
From 6 January 1997 To 31 March 2003
Performance Data
1 Year’s Period
01.04.2002
to
31.03.2003
Total
Average
Return
Annual
Return
3 Years’ Period
01.04.2000
to
31.03.2003
Total
Average
Return
Annual
Return
5 Years’ Period
01.04.1998
to
31.03.2003
Total
Average
Return
Annual
Return
Since Launch
06.01.1997
to
31.03.2003
Total
Average
Return
Annual
Return
Pacific Pearl Fund
(11.59%)
(11.59%)
(25.58%)
(8.53%)
39.88%
7.98%
(2.82%)
(0.45%)
KLSE Emas Index
(15.27%)
(15.27%)
(39.76%)
(13.25%)
(15.44%)
(3.09%)
(55.56%)
(8.91%)
* The benchmark for the Fund is widely used and publicly available from newspaper publications such as The Star and
News Straits Times on a daily basis. It would also be published as a comparison against the Fund’s total return on a
periodic basis, in the Fund’s annual and interim reports and Pacific Mutual’s quarterly Funds’ publication, Close Watch.
Note: The basis of calculating the Fund’s return is in line with the method used by Standard & Poor’s Fund Services Asia Ltd.
Investors should consider the fees and charges involved. The price of units and distributions payable, if any, may go
up as well as down.
Past performance of the Fund is not an indication of its future performance.
41
MORE INFORMATION ABOUT THE FUNDS
Distribution/Unit Split
Year Ended 31 March
2003
Source Of Income For Distribution:
Interest income
Dividend income
Profit on sale of quoted investments
Previous year’s realised gains
Distribution equalisation
*
2002
2001 *
RM’000
%
RM’000
%
RM’000
%
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Gross Distribution Per Unit (sen)
–
–
–
Distribution Per Unit:
Taxable income (sen)
Malaysian taxation (sen)
Non-allowable expenses (sen)
Non-taxable income (sen)
Distribution equalisation (sen)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Net Distribution Per Unit (sen)
–
–
–
Unit Split Ratio
5:100
10:100
10:100
NAV per unit (RM) **
Cum-unit split
Ex-unit split
0.5659
0.5389
0.70
0.64
0.60
0.55
During this financial period, Pacific Pearl Fund changed its financial year-end from 31 January to 31 March. The financial period ended
31 March 2001 represents a period of 14 months from 1 February 2000.
** With effect from 29 July 2002, the NAV per unit is quoted at four decimal places.
Past earnings or the Fund’s distributions record is not a guarantee or a reflection of the Fund’s future
earnings/distributions.
42
MORE INFORMATION ABOUT THE FUNDS
Portfolio Turnover Explanation
The portfolio turnover ratio for the financial year ended 31 March 2003 is 0.58 times (2002: 0.45 times). The portfolio
turnover was higher mainly due to increase in average transactional value of 34.61% i.e. RM97.01 million in 2002
to RM130.59 million in 2003, compared to an increase in average NAV of 5.07% i.e. RM214.62 million in 2002 to
RM225.50 million in 2003. Please refer to page (iii) for definition on portfolio turnover ratio (PTR).
Investment Highlights
Financial Year Ended
Top 5 Equity Securities (Malaysia)
% of NAV
31 March 2001
1.
2.
3.
4.
5.
Carlsberg Brewery Malaysia Bhd
Kian Joo Can Factory Bhd
Fraser & Neave Holdings Bhd
United Malacca Bhd
Gamuda Bhd
3.83
3.15
2.59
2.57
2.51
31 March 2002
1.
2.
3.
4.
5.
Carlsberg Brewery Malaysia Bhd
Fraser & Neave Holdings Bhd
Hong Leong Bank Bhd
Gamuda Bhd
Malaysia International Shipping Corporation Bhd - Foreign
3.16
2.54
2.27
1.95
1.92
31 March 2003*
1.
2.
3.
4.
5.
Resorts World Bhd
Malayan Banking Bhd
Gamuda Bhd
IOI Corporation Bhd
Hong Leong Bank Bhd
4.23
4.14
2.71
2.71
2.58
Financial Year Ended
Top 3 Unquoted Corporate Bonds
% of NAV
31 March 2001
1.
2.
3.
Nilai Cipta Sdn Bhd
Genting Sanyen Power Sdn Bhd
Hong Leong Industries Bhd
2.54
2.07
1.05
31 March 2002
1.
2.
3.
Nilai Cipta Sdn Bhd
Genting Sanyen Power Sdn Bhd
Tenaga Nasional Bhd
2.04
1.65
1.36
31 March 2003
1.
2.
3.
RHB Capital Bhd
Nilai Cipta Sdn Bhd
Tenaga Nasional Bhd
2.53
2.47
1.05
* The investment strategy of Pacific Pearl Fund is to have a significantly higher equity investments in companies with
paid-up capital of RM300 million and below.
Consequently, the weighting of the big cap stocks have over the period been reduced. As at 5 November 2003, the
top 5 equity securities and their weightings are:
1.
2.
3.
4.
5.
MISC-F
Uchi Technologies Bhd
YLI Holdings Bhd
Gamuda Bhd
Palmco Holdings Bhd
% of NAV
Issued Capital
7.1
4.8
3.7
3.0
2.9
1,860 million
72 million
97 million
702 million
202 million
Stocks with paid-up capital of RM300 million and below comprises 42% of the portfolio currently. As the Fund has a
weighting of 75% in equities, it means that the weighting in such stocks comprises 56% of the equity portion of the
Fund. As such, the investments of the Fund are within its mandate.
43
MORE INFORMATION ABOUT THE FUNDS
WHY INVEST IN PACIFIC MILLENNIUM FUND?
WHAT IS THE FUND’S INVESTMENT OBJECTIVE?
The Fund aims to achieve long-term capital growth, with income as its secondary objective, by investing mainly in
fundamentally sound large market capitalisation companies and also any other investments as may be permitted by the
Securities Commission from time to time.
Any changes to the Fund’s investment objective would require unitholders’ approval.
Distribution policy: By way of income distribution, if any, once a year.
Unit split: Once a year, if any.
Type of fund: The Fund is a growth fund.
Category of fund: The Fund is an equity fund.
WHO SHOULD CONSIDER INVESTING?
Investors seeking steady capital and income growth of large companies whose current prices may fail to reflect their longterm values over the medium to long term.
WHAT ARE THE LIKELY BENEFITS?
The Fund invests primarily in companies from diverse sectors with market capitalisation of at least RM500 million and that
are considered to be attractively valued in relation to their asset backing, dividend yields and future earnings potential.
The Fund allows investors the opportunity to benefit from a consistently reasonable income combined with prospects for
capital growth through income distribution.
RISK FACTORS
Pacific Millennium Fund is subject to several risk factors including the following (please refer to pages 5 to 7 for
descriptions of these and other risk factors as well as page 79 for the risk management strategies and techniques):
• Market risk
• Company specific risk
• Interest rate risk
• Credit risk
• Futures risk
WHAT IS THE FUND’S INVESTMENT STRATEGY?
To attain the Fund’s objective of providing investors with a consistently reasonable income as well as capital appreciation,
the Manager will construct a diversified investment portfolio that consists of fundamentally sound companies whose
current prices may fail to reflect their long-term values. The Fund will target companies exhibiting fundamental strength
with market capitalisation, at the time of investment, of at least RM500 million each.
Fixed
Income &
Other Debt
Securities
5.08%
Quoted
Equity
Securities
76.73%
Portfolio Structure
(as per the annual report
for the financial year ended
Cash &
Liquid
Assets
18.19%
30 June 2003)
Launch Date : 15 April 1999
44
MORE INFORMATION ABOUT THE FUNDS
Asset Allocation
The Fund may invest up to 85% (minimum equity allocation is 40%) of its NAV in equities and equity-related securities but
this may be reviewed from time to time depending on the economic and stock market conditions. Liquid assets will be
maintained at all times at a minimum of 5% of the Fund’s NAV.
While the maximum limit for equity investments is 85%, actual asset allocation varies according to the Manager’s
investment outlook and investment strategies after taking into consideration the prevailing market conditions. Based on
the risk-return profile of the Fund, the neutral asset allocation (or long-term average asset allocation) is expected to be
60% in equities and 40% in fixed income securities and liquid assets.
Please also refer to page 79.
• Equity Investment Strategy
The Manager aims to identify companies with market capitalisation of at least RM500 million and whose current prices
may fail to reflect their longer-term value. Diversification into different industries will be implemented.
The investment strategy is based on a disciplined “top-down” approach to asset allocation and sector allocation, using
macroeconomic analysis, market analysis and industry analysis. Stock selection techniques are based on a “bottom-up”
approach using business analysis and security valuation analysis. There is significant overlap between the various
disciplines governing these processes, with strong interaction between the determination of asset allocation and
stock selection.
• Fixed Income Investment Strategy
The Manager’s strategy hinges on the need for a well-diversified portfolio and focuses on the credit qualities of
securities in the portfolio. The fixed income portfolio construction process is research driven and based on
macroeconomic analysis, interest rate analysis, credit analysis and yield spread analysis. Other than the development of
a broad asset allocation model, contributions will be made via active management to capitalise on changes in interest
rates, inter-sector yield spreads and yield spreads of specific debt securities.
PERMITTED INVESTMENTS
Pacific Millennium Fund may invest in the following permitted investments:
• Securities traded on the KLSE and any other market considered as an Eligible Market.
• Fixed income securities traded in or under the rules of an Eligible Market.
• Fixed income securities issued by Bank Negara Malaysia, the Malaysian Government and government related agencies
such as Danamodal Nasional Berhad, Pengurusan Danaharta Nasional Berhad, Khazanah Nasional Berhad and Cagamas
Berhad.
• Unlisted fixed income securities which are either bank-guaranteed or rated by Rating Agency Malaysia Bhd, Malaysia
Rating Corporation Bhd or other recognised rating agencies.
• Liquid assets such as Malaysian currency deposits and money market instruments with commercial banks, finance
companies, merchant banks, discount houses and Bank Islam Malaysia Berhad including Investment Certificates,
placement of monies at call with discount houses, and any other instrument capable of being converted into cash within
seven days as may be approved by the Trustee.
• Futures contracts traded in futures markets of an exchange approved under the Futures Industry Act 1993, only for
hedging purposes. These include:
- KLSE Composite Index futures contracts traded on Malaysian Derivatives Exchange (MDEX);
- 3-month KLIBOR Interest Rates futures contracts traded on MDEX; and
- Any new derivatives instruments introduced by MDEX.
• Any other investments as may be agreed upon by the Manager and the Trustee and permitted by the Securities
Commission’s Guidelines from time to time.
45
MORE INFORMATION ABOUT THE FUNDS
INVESTMENT RESTRICTIONS AND LIMITS
The purchase of investments shall be subject to the following restrictions:
Spread Of Investments On Single Issuer
• The value of the Fund’s holding of the share capital of any single issuer must not exceed 10% of the NAV of the Fund
or any other limit set by the Securities Commission.
• The value of the Fund’s holding of the securities of, and the securities relating to, any single issuer must not exceed 15%
of the NAV of the Fund or any other limit set by the Securities Commission.
Spread Of Investments On Groups Of Companies
• Equity Investments and Fixed Income Investments - The value of the Fund’s holding of the securities of, and the
securities relating to, any group of companies shall not exceed 20% of the NAV of the Fund or any other limit set by
the Securities Commission.
• The value of the Fund’s holding in the securities of and the securities relating to, any group of companies may exceed
20% of the Fund’s NAV provided there are acceptable reasons for exceeding the limit. In this regard, the Manager shall
notify the Securities Commission and the Trustee immediately of reasons for exceeding the limit. Where reasons are not
considered satisfactory, the Securities Commission and/or the Trustee may direct the Manager to comply strictly with the
20% investment restriction.
Concentration Of Investments
• Equity Investments and Fixed Income Investments - The Fund’s holding of any class of security of any single issuer must
not exceed 10% of the security issued or any other limit set by the Securities Commission.
Permissible Grade For Fixed Income Investments
• The Fund’s holding of any single issuer must be rated at least BBB (or equivalent) and above or short-term rating of P3
and above by Rating Agency Malaysia Bhd (RAM) or Malaysia Rating Corporation Bhd (MARC).
Futures Contracts
• The Fund’s net market exposure owing to its futures contract positions must not exceed the Fund’s NAV.
The investment restrictions and limits must be complied with at all times based on the most up-to-date value of the Fund’s
investments. However, a maximum of 5% allowance in excess of the restrictions is permitted where the restriction is
breached through appreciation or depreciation of the NAV of the Fund. The Manager will take all necessary steps and
actions to rectify any breach within reasonable period of not more than three months from the date of the breach.
The Fund shall not borrow in connection with its activities or lend any of its cash or investments unless permitted by the
Guidelines or other laws or regulations pertaining to unit trusts.
46
MORE INFORMATION ABOUT THE FUNDS
HOW IS THE FUND’S PERFORMANCE?
Performance Chart
(as per the annual report for the financial year ended 30 June 2003)
Launch Date : 15 April 1999
Performance Benchmark : KLSE Composite Index (KLCI)*
80
70
60
Return (%)
50
40
30
20
10
0
Pacific Millennium Fund
30.06.2003
31.12.2002
30.06.2002
31.12.2001
30.06.2001
30.11.2000
30.04.2000
31.10.1999
15.04.1999
-10
KLCI
From 15 April 1999 To 30 June 2003
Performance Data
1 Year’s Period
01.07.2002
to
30.06.2003
Total
Average
Return
Annual
Return
3 Years’ Period
01.07.2000
to
30.06.2003
Total
Average
Return
Annual
Return
Since Launch
15.04.1999
to
30.06.2003
Total
Average
Return
Annual
Return
Pacific Millennium Fund
(4.52%)
(4.52%)
1.14%
0.38%
29.85%
7.08%
KLSE Composite Index
(4.62%)
(4.62%)
(16.97%)
(5.66%)
19.69%
4.67%
* The benchmark for the Fund is widely used and publicly available from newspaper publications such as The Star and
News Straits Times on a daily basis. It would also be published as a comparison against the Fund’s total return on a
periodic basis, in the Fund’s annual and interim reports and Pacific Mutual’s quarterly Funds’ publication, Close Watch.
Note: The basis of calculating the Fund’s return is in line with the method used by Standard & Poor’s Fund Services Asia Ltd.
Investors should consider the fees and charges involved. The price of units and distributions payable, if any, may go
up as well as down.
Past performance of the Fund is not an indication of its future performance.
47
MORE INFORMATION ABOUT THE FUNDS
Distribution/Unit Split
Year Ended 30 June
2003
Source Of Income For Distribution:
Dividend income
Interest income
Accretion of discount net of
amortisation of premium on
unquoted corporate bonds
Realised gain on sale of investments
Distribution equalisation
2001*
%
RM’000
%
RM’000
%
910
948
18.88
19.66
–
–
–
–
–
–
–
–
120
1,460
1,384
4,822
2.48
30.28
28.70
100.00
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Gross Distribution Per Unit (sen)
3.00
–
–
Distribution Per Unit:
Taxable income (sen)
Malaysian taxation (sen)
Non-allowable expenses (sen)
Non-taxable income (sen)
Distribution equalisation (sen)
0.49
(0.14)
(0.86)
2.26
1.11
–
–
–
–
–
–
–
–
–
–
Net Distribution Per Unit (sen)
2.86
–
–
–
10:100
–
0.4952
0.4665
0.57
0.52
0.43
0.43
Unit Split Ratio
NAV per unit (RM) **
Cum-unit split
Ex-unit split
*
2002
RM’000
During this financial period, Pacific Millennium Fund changed its financial year-end from 30 April to 30 June. The financial period
ended 30 June 2001 represents a period of 14 months from 1 May 2000.
** With effect from 29 July 2002, the NAV per unit is quoted at four decimal places.
Past earnings or the Fund’s distributions record is not a guarantee or a reflection of the Fund’s future
earnings/distributions.
48
MORE INFORMATION ABOUT THE FUNDS
Portfolio Turnover Explanation
The portfolio turnover ratio for the financial year ended 30 June 2003 is 0.61 times (2002: 0.80 times). The portfolio
turnover was lower mainly due to a decrease in average transactional value of 17.77% i.e. RM43.16 million in 2002 to
RM35.49 million in 2003 compared to an increase of 8.01% in the average NAV i.e. from RM53.92 million in 2002 to
RM58.24 million in 2003. Please refer to page (iii) for definition on portfolio turnover ratio (PTR).
Investment Highlights
Financial Year Ended
30 June 2001
30 June 2002
30 June 2003
Top 5 Equity Securities (Malaysia)
1.
Hong Leong Bank Bhd
3.67
2.
Gamuda Bhd
3.61
3.
Carlsberg Brewery Malaysia Bhd
3.52
4.
Berjaya Sports Toto Bhd
3.32
5.
Unisem (M) Bhd
3.19
1.
Tenaga Nasional Bhd
4.54
2.
Resorts World Bhd
4.05
3.
Malaysia International Shipping Corporation Bhd – Foreign
3.67
4.
British American Tobacco (M) Bhd
3.54
5.
Gamuda Bhd
3.53
1.
Malayan Banking Bhd
5.44
2.
AMMB Holdings Bhd
4.16
3.
Commerce Asset-Holding Bhd
4.05
4.
Maxis Communications Bhd
3.92
5.
Hong Leong Bank Bhd
3.86
Financial Year Ended
30 June 2001
30 June 2002
30 June 2003
% of NAV
Top 3 Unquoted Corporate Bonds
1.
Hong Leong Industries Bhd
% of NAV
2.28
2.
Penang Bridge Sdn Bhd
2.23
3.
Gamuda Bhd
1.88
1.
MAA Holdings Bhd
1.63
2.
Gamuda Bhd
1.45
3.
–
1.
MAA Holdings Bhd
0.83
2.
Divine Vista Sdn Bhd
0.80
3.
RHB Capital Bhd
0.67
–
49
MORE INFORMATION ABOUT THE FUNDS
WHY INVEST IN PACIFIC RECOVERY FUND?
WHAT IS THE FUND’S INVESTMENT OBJECTIVE?
The Fund aims to provide above average returns in the form of capital growth over a medium to long-term period by
investing mainly in cyclical stocks, stocks that are likely to be crisis survivors as well as stocks that are undergoing
restructuring, which may offer considerable recovery prospects and also any other investments as may be permitted by the
Securities Commission from time to time.
Any changes to the Fund’s investment objective would require unitholders’ approval.
Distribution policy: By way of income distribution, if any, once a year.
Unit split: Once a year in June, if any.
Type of fund: The Fund is a growth fund.
Category of fund: The Fund is an equity fund.
WHO SHOULD CONSIDER INVESTING?
Investors seeking high capital growth over the medium to long term and willing to accept a higher degree of risk in return
for potentially higher investment gains following any economic downturn, industry-wide cyclical downturn or corporate
restructuring exercise.
WHAT ARE THE LIKELY BENEFITS?
The Fund invests primarily in stocks which the Manager believes there is a good likelihood of recovery from any cyclical
downturn or some non-structural setback with strong possibility of earnings improvement. The Fund allows investors the
opportunity to benefit from capital growth following any economic downturn, industry-wide cyclical downturn, or
corporate restructuring exercise.
RISK FACTORS
Pacific Recovery Fund is subject to several risk factors including the following (please refer to pages 5 to 7 for descriptions
of these and other risk factors as well as page 79 for the risk management strategies and techniques):
• Market risk
• Company specific risk
• Interest rate risk
• Credit risk
• Expectation risk
• Futures risk
WHAT IS THE FUND’S INVESTMENT STRATEGY?
To achieve its objective of attaining above average returns in the form of capital growth over a medium to long-term
period, the Fund’s investment strategy is to invest primarily in equities of companies which the Manager believes have a
good likelihood of recovery from any cyclical downturn or some non-structural setback with strong possibility of earnings
improvement. Recovery is defined as the overcoming of economic or financial setbacks or difficulties and the regaining of
the former economic or financial fundamentals.
Derivative
Instruments
1.85%
Quoted
Equity
Securities
64.87%
Fixed
Income &
Other Debt
Securities
2.08%
Portfolio Structure
(as per the annual report
for the financial year ended
30 June 2003)
Cash &
Liquid
Assets
31.20%
Launch Date : 15 April 1999
50
MORE INFORMATION ABOUT THE FUNDS
Asset Allocation
The Fund may invest up to 90% (minimum equity allocation is 45%) of its NAV in equities and equity-related securities but
this may be reviewed from time to time depending on the economic and stock market conditions. Liquid assets will be
maintained at all times at a minimum of 5% of the Fund’s NAV.
While the maximum limit for equity investments is 90%, actual asset allocation varies according to the Manager’s
investment outlook and investment strategies after taking into consideration the prevailing market conditions. Based on
the risk-return profile of the Fund, the neutral asset allocation (or long-term average asset allocation) is expected to be
70% in equities and 30% in fixed income securities and liquid assets.
Please also refer to page 79.
• Equity Investment Strategy
In line with the Fund’s objectives of achieving a high capital growth, the Fund will invest in a diversified portfolio of
equities. In this respect, the Fund will primarily invest in:
• Cyclical stocks which are out of favour as a result of a downturn in the particular sector;
• Stocks which are likely to be crisis survivors that can thrive when the economy recovers; and
• Stocks that are undergoing business transformation involving mergers and acquisitions or in the process of
streamlining or re-organisation of its core businesses which would enable them to emerge stronger so as to be able
to tap the growth prospects upon the eventual recovery of the economy.
The investment strategy is based on a disciplined “top-down” approach to asset allocation and sector allocation, using
macroeconomic analysis, market analysis and industry analysis. Stock selection techniques are based on a “bottom-up”
approach using business analysis and security valuation analysis. There is significant overlap between the various
disciplines governing these processes, with strong interaction between the determination of asset allocation and
stock selection.
• Fixed Income Investment Strategy
The Manager’s strategy hinges on the need for a well-diversified portfolio and focuses on the credit qualities of
securities in the portfolio. The fixed income portfolio construction process is research driven and based on
macroeconomic analysis, interest rate analysis, credit analysis and yield spread analysis. Other than the development of
a broad asset allocation model, contributions will be made via active management to capitalise on changes in interest
rates, inter-sector yield spreads and yield spreads of specific debt securities.
PERMITTED INVESTMENTS
Pacific Recovery Fund may invest in the following permitted investments:
• Securities traded on the KLSE and any other market considered as an Eligible Market.
• Fixed income securities traded in or under the rules of an Eligible Market.
• Fixed income securities issued by Bank Negara Malaysia, the Malaysian Government and government related
agencies such as Danamodal Nasional Berhad, Pengurusan Danaharta Nasional Berhad, Khazanah Nasional Berhad
and Cagamas Berhad.
• Unlisted fixed income securities which are either bank-guaranteed or rated by Rating Agency Malaysia Bhd, Malaysia
Rating Corporation Bhd or other recognised rating agencies.
• Liquid assets such as Malaysian currency deposits and money market instruments with commercial banks, finance
companies, merchant banks, discount houses and Bank Islam Malaysia Berhad including Investment Certificates,
placement of monies at call with discount houses, and any other instrument capable of being converted into cash within
seven days as may be approved by the Trustee.
• Futures contracts traded in futures markets of an exchange approved under the Futures Industry Act 1993, only for
hedging purposes. These include:
- KLSE Composite Index futures contracts traded on Malaysian Derivatives Exchange (MDEX);
- 3-month KLIBOR Interest Rates futures contracts traded on MDEX; and
- Any new derivatives instruments introduced by MDEX.
• Any other investments as may be agreed upon by the Manager and the Trustee and permitted by the Securities
Commission’s Guidelines from time to time.
51
MORE INFORMATION ABOUT THE FUNDS
INVESTMENT RESTRICTIONS AND LIMITS
The purchase of investments shall be subject to the following restrictions:
Spread Of Investments On Single Issuer
• The value of the Fund’s holding of the share capital of any single issuer must not exceed 10% of the NAV of the Fund
or any other limit set by the Securities Commission.
• The value of the Fund’s holding of the securities of, and the securities relating to, any single issuer must not exceed 15%
of the NAV of the Fund or any other limit set by the Securities Commission.
Spread Of Investments On Groups Of Companies
• The value of the Fund’s holding of the securities of, and the securities relating to, any group of companies shall not
exceed 20% of the NAV of the Fund or any other limit set by the Securities Commission.
• The value of the Fund’s holding in the securities of and the securities relating to, any group of companies may exceed
20% of the Fund’s NAV provided there are acceptable reasons for exceeding the limit. In this regard, the Manager shall
notify the Securities Commission and the Trustee immediately of reasons for exceeding the limit. Where reasons are not
considered satisfactory, the Securities Commission and/or the Trustee may direct the Manager to comply strictly with the
20% investment restriction.
Concentration Of Investments
• The Fund’s holding of any class of security of any single issuer must not exceed 10% of the security issued or any other
limit set by the Securities Commission.
Permissible Grade For Fixed Income Investments
• The Fund’s holding of any single issuer must be rated at least BBB (or equivalent) and above or short-term rating of P3
and above by Rating Agency Malaysia Bhd (RAM) or Malaysia Rating Corporation Bhd (MARC).
Futures Contracts
• The Fund’s net market exposure owing to its futures contract positions must not exceed the Fund’s NAV.
The investment restrictions and limits must be complied with at all times based on the most up-to-date value of the Fund’s
investments. However, a maximum of 5% allowance in excess of the restrictions is permitted where the restriction is
breached through appreciation or depreciation of the NAV of the Fund. The Manager will take all necessary steps and
actions to rectify any breach within reasonable period of not more than three months from the date of the breach.
The Fund shall not borrow in connection with its activities or lend any of its cash or investments unless permitted by the
Guidelines or other laws or regulations pertaining to unit trusts.
52
MORE INFORMATION ABOUT THE FUNDS
HOW IS THE FUND’S PERFORMANCE?
Performance Chart
(as per the annual report for the financial year ended 30 June 2003)
Launch Date : 15 April 1999
Performance Benchmark : KLSE Composite Index (KLCI)*
80
70
60
Return (%)
50
40
30
20
10
0
Pacific Recovery Fund
30.06.2003
31.12.2002
30.06.2002
31.12.2001
30.06.2001
30.11.2000
30.04.2000
31.10.1999
15.04.1999
-10
KLCI
From 15 April 1999 To 30 June 2003
Performance Data
1 Year’s Period
01.07.2002
to
30.06.2003
Total
Average
Return
Annual
Return
3 Years’ Period
01.07.2000
to
30.06.2003
Total
Average
Return
Annual
Return
Since Launch
15.04.1999
to
30.06.2003
Total
Average
Return
Annual
Return
Pacific Recovery Fund
(6.55%)
(6.55%)
(2.44%)
(0.81%)
44.05%
10.45%
KLSE Composite Index
(4.62%)
(4.62%)
(16.97%)
(5.66%)
19.69%
4.67%
* The benchmark for the Fund is widely used and publicly available from newspaper publications such as The Star and
News Straits Times on a daily basis. It would also be published as a comparison against the Fund’s total return on a
periodic basis, in the Fund’s annual and interim reports and Pacific Mutual’s quarterly Funds’ publication, Close Watch.
Note: The basis of calculating the Fund’s return is in line with the method used by Standard & Poor’s Fund Services Asia Ltd.
Investors should consider the fees and charges involved. The price of units and distributions payable, if any, may go
up as well as down.
Past performance of the Fund is not an indication of its future performance.
53
MORE INFORMATION ABOUT THE FUNDS
Distribution/Unit Split
Year Ended 30 June
2003
Source Of Income For Distribution:
Dividend income
Interest income
Accretion of discount net of
amortisation of premium on
unquoted corporate bonds
Soft commissions
Previous year’s realised gains
Distribution equalisation
2001*
%
RM’000
%
RM’000
%
1,850
594
12.99
4.17
–
–
–
–
–
–
–
–
44
213
4,849
6,686
14,236
0.31
1.50
34.06
46.97
100.00
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Gross Distribution Per Unit (sen)
5.00
–
–
Distribution Per Unit:
Taxable income (sen)
Malaysian taxation (sen)
Non-allowable expenses (sen)
Non-taxable income (sen)
Distribution equalisation (sen)
0.53
(0.15)
(0.83)
2.16
3.14
–
–
–
–
–
–
–
–
–
–
Net Distribution Per Unit (sen)
4.85
–
–
–
10:100
–
0.5219
0.4733
0.61
0.55
0.46
0.46
Unit Split Ratio
NAV per unit (RM) **
Cum-unit split
Ex-unit split
*
2002
RM’000
During this financial period, Pacific Recovery Fund changed its financial year-end from 30 April to 30 June. The financial period ended
30 June 2001 represents a period of 14 months from 1 May 2000.
** With effect from 29 July 2002, the NAV per unit is quoted at four decimal places.
Past earnings or the Fund’s distributions record is not a guarantee or a reflection of the Fund’s future
earnings/distributions.
54
MORE INFORMATION ABOUT THE FUNDS
Portfolio Turnover Explanation
The portfolio turnover ratio for the financial year ended 30 June 2003 is 0.71 times (2002: 0.91 times). The portfolio
turnover was lower mainly due to a decrease in average transactional value of 2.69% i.e. RM79.58 million in 2002 to
RM77.44 million in 2003 compared to an increase of 24.43% in the average NAV i.e. from RM87.38 million in 2002 to
RM108.73 million in 2003. Please refer to page (iii) for definition on portfolio turnover ratio (PTR).
Investment Highlights
Financial Year Ended
30 June 2001
30 June 2002
30 June 2003*
Top 5 Equity Securities (Malaysia)
1.
Asia File Corporation Bhd
2.85
2.
Berjaya Sports Toto Bhd
2.65
3.
AMMB Holdings Bhd
2.50
4.
Hong Leong Bank Bhd
2.39
5.
Malakoff Bhd
2.38
1.
Resorts World Bhd
3.99
2.
Malaysia International Shipping Corporation Bhd – Foreign
2.93
3.
IOI Corporation Bhd
2.81
4.
AMMB Holdings Bhd
2.57
5.
Gamuda Bhd
2.41
1.
Commerce Asset-Holding Bhd
4.99
2.
AMFB Holdings Bhd – Foreign
4.32
3.
AMMB Holdings Bhd
4.16
4.
Hong Leong Bank Bhd
3.96
5.
Telekom Malaysia Bhd
3.52
Financial Year Ended
30 June 2001
30 June 2002
30 June 2003
% of NAV
Top 3 Unquoted Corporate Bonds
% of NAV
1.
Penang Bridge Sdn Bhd
2.62
2.
PLUS Bhd
0.99
3.
–
–
1.
MAA Holdings Bhd
2.
–
0.92
–
3.
–
–
1.
MAA Holdings Bhd
0.83
2.
Divine Vista Sdn Bhd
0.80
3.
RHB Capital Bhd
0.33
* Banking stocks are considered to be cyclical because their earnings typically increase as the economy improves and loan
growth accelerates. But in an economic downturn, earnings will fall as non-performing loans surface and provisions have
to be made. And because banks are geared up to 10x, the swings are magnified.
55
MORE INFORMATION ABOUT THE FUNDS
WHY INVEST IN PACIFIC INCOME FUND?
WHAT IS THE FUND’S INVESTMENT OBJECTIVE?
The Fund aims to achieve consistently attractive and stable income with reasonable preservation of capital by investing
in a diversified portfolio of fixed income securities such as bonds and money market instruments as well as stocks that
offer a steady dividend income stream. The Fund also aims to provide moderate capital growth over a medium to
long-term period.
Any changes to the Fund’s investment objective would require unitholders’ approval.
Distribution policy: By way of income distribution, if any, once a year.
Type of fund: The Fund is an income fund.
Category of fund: The Fund is a fixed income/equity fund.
WHO SHOULD CONSIDER INVESTING?
Investors seeking a regular income stream with returns higher than fixed deposit rates and moderate capital growth with
reasonable preservation of capital.
WHAT ARE THE LIKELY BENEFITS?
The Fund invests its resources predominantly in private debt securities which generally produce higher yield than
government bonds and money market instruments. However, the Fund also targets to maximise its medium to long-term
capital growth and risk-adjusted rewards by investing a substantial proportion of its resources in equities that are
fundamentally sound and have excellent potential for capital appreciation.
Therefore, by investing in Pacific Income Fund, you would be able to reap the following benefits:
• Gain access to the high yielding bond market which normally trades in large standard blocks of RM5 million each;
• Reduce the specific risk of a single bond by investing in a diversified portfolio of fixed income securities;
• Sell at any time based on the Fund’s NAV without worrying that the securities are illiquid; and
• Benefit from the Fund’s ability to shift between equities and bonds in response to changing market conditions and
interest rates to maximise capital gain and interest income.
RISK FACTORS
Pacific Income Fund is subject to several risk factors including the following (please refer to pages 5 to 7 for descriptions
of these and other risk factors as well as page 79 for the risk management strategies and techniques):
• Interest rate risk
• Credit risk
• Liquidity risk
• Market risk
• Company specific risk
• Futures risk
WHAT IS THE FUND’S INVESTMENT STRATEGY?
To attain the Fund’s objective of achieving consistently attractive and stable income with reasonable protection of capital,
Pacific Income Fund will invest in a diversified portfolio of fixed income securities such as bonds and money market
instruments as well as stocks that offer a steady dividend income stream.
Cash & Liquid
Assets
2.95%
Portfolio Structure
(as per the annual report
Quoted Equity
Securities
40.04%
Fixed Income
& Other Debt
Securities
57.01%
for the financial year ended
30 September 2003)
Launch Date : 18 August 2000
56
MORE INFORMATION ABOUT THE FUNDS
Asset Allocation
The Fund may invest up to 40% (minimum equity allocation is 20%) of its NAV in equities and equity-related securities but
this may be reviewed from time to time depending on the economic and stock market conditions. Minimum fixed income
allocation is set at 30%. Liquid assets will be maintained at all times at a minimum of 5% of the Fund’s NAV.
Actual asset allocation varies according to the Manager’s investment outlook and investment strategies after taking into
consideration the prevailing market conditions. Based on the risk-return profile of the Fund, the neutral asset allocation
(or long-term average asset allocation) is expected to be 75% in fixed income securities and liquid assets and 25%
in equities.
Please also refer to page 79.
• Fixed Income Investment Strategy
The Manager’s strategy hinges on the need for a well-diversified portfolio and focuses on the credit qualities of
securities in the portfolio. The fixed income portfolio construction process is research driven and is based on
macroeconomic analysis, interest rate analysis, credit analysis and yield spread analysis. Other than the development of
a broad asset allocation model, contributions will be made via active management to capitalise on changes in interest
rates, inter-sector yield spreads and yield spreads of specific debt securities.
• Equity Investment Strategy
The Fund invests in equities that are fundamentally sound and have excellent potential for medium to long-term capital
appreciation. Since the Fund’s investment philosophy is mainly fundamentals driven, the Manager will constantly rotate
its portfolio selection to accommodate the prevailing macro economic outlook. Meanwhile, the Fund will also actively
search for under-valued stocks that can offer promising capital returns.
The investment strategy is based on a disciplined “top-down” approach to asset allocation and sector allocation, using
macroeconomic analysis, market analysis and industry analysis. Stock selection techniques are based on a “bottom-up”
approach using business analysis and security valuation analysis. There is significant overlap between the various
disciplines governing these processes, with strong interaction between the determination of asset allocation and stock
selection.
PERMITTED INVESTMENTS
Pacific Income Fund may invest in the following permitted investments:
• Securities traded on the KLSE and any other market considered as an Eligible Market.
• Fixed income securities traded in or under the rules of an Eligible Market.
• Fixed income securities issued by Bank Negara Malaysia, the Malaysian Government and government related agencies
such as Danamodal Nasional Berhad, Pengurusan Danaharta Nasional Berhad, Khazanah Nasional Berhad and Cagamas
Berhad.
• Unlisted fixed income securities which are either bank-guaranteed or rated by Rating Agency Malaysia Bhd, Malaysia
Rating Corporation Bhd or other recognised rating agencies.
• Liquid assets such as Malaysian currency deposits and money market instruments with commercial banks, finance
companies, merchant banks, discount houses and Bank Islam Malaysia Berhad including Investment Certificates,
placement of monies at call with discount houses, and any other instrument capable of being converted into cash within
seven days as may be approved by the Trustee.
• Futures contracts traded in futures markets of an exchange approved under the Futures Industry Act 1993, only for
hedging purposes. These include:
- KLSE Composite Index futures contracts traded on Malaysian Derivatives Exchange (MDEX);
- 3-month KLIBOR Interest Rates futures contracts traded on MDEX; and
- Any new derivatives instruments introduced by MDEX.
• Any other investments as may be agreed upon by the Manager and the Trustee and permitted by the Securities
Commission’s Guidelines from time to time.
57
MORE INFORMATION ABOUT THE FUNDS
INVESTMENT RESTRICTIONS AND LIMITS
The purchase of investments shall be subject to the following restrictions:
Spread Of Investments On Single Issuer
• The value of the Fund’s holding of the share capital of any single issuer must not exceed 10% of the NAV of the Fund
or any other limit set by the Securities Commission.
• The value of the Fund’s holding of the securities of, and the securities relating to, any single issuer must not exceed 15%
of the NAV of the Fund or any other limit set by the Securities Commission.
Spread Of Investments On Groups Of Companies
• The value of the Fund’s holding of the securities of, and the securities relating to, any group of companies shall not
exceed 20% of the NAV of the Fund or any other limit set by the Securities Commission.
• The value of the Fund’s holding in the securities of and the securities relating to, any group of companies may exceed
20% of the Fund’s NAV provided there are acceptable reasons for exceeding the limit. In this regard, the Manager shall
notify the Securities Commission and the Trustee immediately of reasons for exceeding the limit. Where reasons are not
considered satisfactory, the Securities Commission and/or the Trustee may direct the Manager to comply strictly with the
20% investment restriction.
Concentration Of Investments
• The Fund’s holding of any class of security of any single issuer must not exceed 10% of the security issued or any other
limit set by the Securities Commission.
Permissible Grade For Fixed Income Investments
• The Fund’s holding of any single issuer must be rated at least BBB (or equivalent) and above or short-term rating of P3
and above by Rating Agency Malaysia Bhd (RAM) or Malaysia Rating Corporation Bhd (MARC).
Futures Contracts
• The Fund’s net market exposure owing to its futures contract positions must not exceed the Fund’s NAV.
The investment restrictions and limits must be complied with at all times based on the most up-to-date value of the Fund’s
investments. However, a maximum of 5% allowance in excess of the restrictions is permitted where the restriction is
breached through appreciation or depreciation of the NAV of the Fund. The Manager will take all necessary steps and
actions to rectify any breach within reasonable period of not more than three months from the date of the breach.
The Fund shall not borrow in connection with its activities or lend any of its cash or investments unless permitted by the
Guidelines or other laws or regulations pertaining to unit trusts.
58
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HOW IS THE FUND’S PERFORMANCE?
Performance Chart
(as per the annual report for the financial year ended 30 September 2003)
Launch Date : 18 August 2000
Performance Benchmark : Composite Benchmark (40% in KLSE Composite Index and 60% in 3-month Kuala Lumpur
Interbank Offer Rates)*
24
Return (%)
18
12
6
0
-6
Pacific Income Fund
30.09.2003
31.07.2003
30.05.2003
31.03.2003
29.11.2002
31.01.2003
30.09.2002
31.07.2002
31.05.2002
29.03.2002
30.11.2001
31.01.2002
28.09.2001
31.07.2001
31.05.2001
30.03.2001
30.11.2000
31.01.2001
29.09.2000
18.08.2000
-12
Composite Benchmark
(40% KLCI & 60%
Klibor 3-month)
From 18 August 2000 To 30 September 2003
Performance Data
1 Year’s Period
01.10.2002
to
30.09.2003
Total
Average
Return
Annual
Return
3 Years’ Period
01.10.2000
to
30.09.2003
Total
Average
Return
Annual
Return
Since Launch
18.08.2000
to
30.09.2003
Total
Average
Return
Annual
Return
Pacific Income Fund
9.21%
9.21%
21.00%
7.00%
21.00%
6.73%
Composite Benchmark
7.90%
7.90%
7.21%
2.40%
2.07%
0.66%
* The benchmark for the Fund is a composite of the KLCI and 3-month KLIBOR and these data are available from
newspaper publications such as The Star and News Straits Times on a daily basis. It would also be published as a
comparison against the Fund’s total return on a periodic basis, in the Fund’s annual and interim reports and Pacific
Mutual’s quarterly Funds’ publication, Close Watch.
Note: All figures pertaining to the Fund’s return were extracted from Standard & Poor’s Workstation System.
Investors should consider the fees and charges involved. The price of units and distribution payable, if any, may go
up as well as down.
Past performance of the Fund is not an indication of its future performance.
59
MORE INFORMATION ABOUT THE FUNDS
Distribution/Unit Split
Year Ended 30 September
2003
Source Of Income For Distribution:
Dividend income
Interest income
Realised gains on sales of investments
Accretion of discount net of amortisation
of premium on unquoted corporate
bonds
Previous year‘s realised gains
Distribution equalisation
2002
2001
RM’000
%
RM’000
%
RM’000
%
1,731
4,114
5,048
643
14.58
34.64
42.50
5.41
617
2,526
3,743
1,025
6.10
25.01
37.07
10.15
415
1,817
1,716
1,071
7.52
32.90
31.07
19.39
341
–
11,877
2.87
–
100.00
–
2,188
10,099
–
21.67
100.00
–
504
5,523
–
9.12
100.00
Gross Distribution Per Unit (sen)
3.00
3.00
2.50
Distribution Per Unit:
Taxable income (sen)
Malaysian taxation (sen)
Non-allowable expenses (sen)
Non-taxable income (sen)
Distribution equalisation (sen)
0.41
(0.11)
(0.67)
3.15
0.11
0.16
(0.04)
(0.49)
2.58
0.75
0.14
(0.04)
(0.57)
2.65
0.28
Net Distribution Per Unit (sen)
2.89
2.96
2.46
–
–
–
0.5170
0.4881
0.5040
0.4744
0.48
0.46
Unit Split Ratio
NAV per unit (RM) *
Cum-unit split
Ex-unit split
* With effect from 29 July 2002, the NAV per unit is quoted at four decimal places.
Past earnings or the Fund’s distributions record is not a guarantee or a reflection of the Fund’s future
earnings/distributions.
60
MORE INFORMATION ABOUT THE FUNDS
Portfolio Turnover Explanation
The portfolio turnover ratio for the financial year ended 30 September 2003 is 0.49 times (2002: 0.33 times). Higher
portfolio turnover was due to a higher percentage increase in the average NAV of 45.13% from RM114.87 million in 2002
to RM166.72 million in 2003 compared to 113.13% increase in the average transactional value i.e. from RM38.16 million
in 2002 to RM81.33 million in 2003. Please refer to page (iii) for definition on portfolio turnover ratio (PTR).
Investment Highlights
Financial Year Ended
30 September 2001
30 September 2002
30 September 2003
Top 5 Equity Securities (Malaysia)
1.
Gamuda Bhd
2.54
2.
Public Bank Bhd
1.87
3.
IOI Corporation Bhd
1.87
4.
The New Straits Times Press (M) Bhd
1.76
5.
Sime Darby Bhd
1.67
1.
Resorts World Bhd
2.62
2.
British American Tobacco (M) Bhd
2.44
3.
IOI Corporation Bhd
1.72
4.
AMMB Holdings Bhd
1.66
5.
Road Builder (M) Holdings Bhd
1.60
1.
British American Tobacco (M) Bhd
3.75
2.
Tanjong Plc
3.67
3.
AMMB Holdings Bhd
3.62
4.
Road Builder (M) Holdings Bhd
3.32
5.
Hong Leong Bank Bhd
3.09
Financial Year Ended
30 September 2001
30 September 2002
30 September 2003
% of NAV
Top 3 Unquoted Corporate Bonds
% of NAV
1.
Sabah Development Bank Bhd
7.18
2.
PLUS Bhd
6.84
3.
Lekir Bulk Terminal Sdn Bhd
6.39
1.
Road Builder (M) Holdings Bhd
7.53
2.
Encorp Systembilt Sdn Bhd
6.35
3.
Celcom (Malaysia) Bhd
5.90
1.
System Lingkaran Lebuhraya Kajang Sdn Bhd
4.25
2.
Divine Vista Sdn Bhd
4.23
3.
Perak-Hanjoong Simen Sdn Bhd
4.01
61
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WHY INVEST IN PACIFIC PROGRESSIVE FUND?
WHAT IS THE FUND’S INVESTMENT OBJECTIVE?
The Fund aims to achieve maximum capital growth and income over a medium to long-term period by investing in
securities of companies in the technology industry that offer strong growth prospects.
Any changes to the Fund’s investment objective would require unitholder’s approval.
Distribution policy: By way of income distribution as a secondary objective, if any, once a year.
Unit split: Once a year, if any.
Type of fund: The Fund is a growth fund.
Category of fund: The Fund is an equity (technology) fund.
WHO SHOULD CONSIDER INVESTING?
Investors seeking high capital growth over the medium to long term and willing to accept a higher degree of risk in return
for potentially higher investment gains in the technology sector* (*please refer to page 63).
WHAT ARE THE LIKELY BENEFITS AND POTENTIAL RISKS?
The Fund invests primarily in equities of companies from the higher value-added technology industry, which offers
investors participation in the business potentials and rewards within the growing knowledge-based economy. Asset
allocation and stock selection decisions will be varied from time to time according to market-wide and industry trends to
optimise the Fund’s investment returns.
The fast evolving and often changing nature of technologies gives rise to both opportunities and threats to those in the
business. In this respect, a higher risk premium is typically attached to the industry and the expected investment returns
are also higher.
Investors into Pacific Progressive Fund enjoy the benefits of:
• Access to the potentials of the knowledge-based economy.
• Risk diversification from a portfolio invested into different sub-sectors of the broader technology industry.
• Ability to sell at any time based on the Fund’s NAV without worrying about the underlying stock’s liquidity.
RISK FACTORS
Pacific Progressive Fund is subject to several risk factors including the following (please refer to pages 5 to 7 for
descriptions of these and other risk factors as well as page 79 for the risk management strategies and techniques):
• Market risk
• Company specific risk
• Interest rate risk
• Liquidity risk
• Futures risk
• Credit risk
WHAT IS THE FUND’S INVESTMENT STRATEGY?
The Fund will invest in stocks included in either one of the two technology indices, namely, the KLSE Technology Index and
the RHB Tech Index.
In constructing the investment strategies for the Fund, the Manager will utilise its research facilities to perform
macroeconomic, market, industry and corporate valuation analyses to achieve an optimal portfolio that maximises return
and minimises risk.
Derivative
Instruments
3.59%
Quoted
Equity
Securities
58.30%
Portfolio Structure
(as per the annual report
for the financial year ended
Cash &
Liquid
Assets
38.11%
31 December 2002)
Launch Date : 2 January 2001
62
MORE INFORMATION ABOUT THE FUNDS
Asset Allocation
The Fund may invest up to 95% (minimum equity allocation is 45%) of its NAV in equities and equity-related securities of
the broad technology industry but this may be reviewed from time to time depending on the economic and stock market
conditions. Liquid assets will be maintained at all times at a minimum of 5% of the Fund’s NAV.
While the maximum limit for equity investments is 95%, actual asset allocation varies according to the Manager’s
investment outlook and investment strategies after taking into consideration the prevailing market conditions. Based on
the risk-return profile of the Fund, the neutral asset allocation (or long-term average asset allocation) is expected to be
70% in equities and 30% in fixed income securities and liquid assets.
Please also refer to page 79.
• Equity Investment Strategy
Capital appreciation will be the main objective of its equity investment. In selecting equities, fundamental and technical
analysis will be used to identify the right investments.
■
Diversification
Within the equity portion of the Fund, the Manager will invest in a ’basket’ of promising stocks so as to even out the
volatilities of individual stocks. However, as this is a sector specialised fund, broad diversification is given up in favour
of diversification within the technology sector. Sector portfolios make a lot more sense than investing in just one
stock in an industry (e.g. technology) that the Fund wants to gain exposure to. The Fund diversifies within the
industry and thus reduces company specific risk.
■
Stock Selections
Equity investment will be focused on technology companies that profit from the acceleration of usage in technology
by both businesses and consumers. These companies fall into one of 10 sub-sectors of the broader technology
industry. The Fund will actively invest in equities that are under-valued or offer above average growth potentials.
• Fixed Income Investment Strategy
The Manager will invest a portion of the Fund in fixed income securities at a level based on the investment strategy
adopted by the Fund. The Fund’s investment exposure will not be limited to debt securities issued by technology
companies where fixed income investment is concerned. These fixed income securities will be primarily private debt
securities, money market instruments and Government bonds. The Fund will position itself to capitalise on situations
such as changes in future interest rates, inter-sector spreads as well as changes in yield spread of particular bond.
DEFINITION OF TECHNOLOGY SECTOR
The Fund has adopted the Kuala Lumpur Stock Exchange’s (KLSE) definition of technology sector as laid out in the KLSE’s
Practice Note No.7/2001. This would be as follows:
A company whose stock would be classified as a technology stock should meet one or more of the following criteria:
• Its core business must be of a type readily recognisable as being involved in technological innovation. Currently, the
following categories fall under the aforesaid category:
■
computer hardware and software;
■
electronics; or
■
telecommunications.
Such categories may be expanded from time to time by KLSE.
• Its business growth and success depend on its ability to develop technology, or on its ability to significantly innovate
technology, resulting in incremental improvements in process and/or value added products and services.
• Its technology is new or emerging in Malaysia. Use of technology which has previously existed in Malaysia will not
suffice unless the listed issuer has undertaken significant innovation on such technology.
• It invests in Research and Development (R&D). Although there is no prescribed minimum amount spent for R&D, there
must be an annual expenditure.
• It has a dedicated team of qualified personnel, undertaking the R&D. No minimum number of personnel is prescribed.
63
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PERMITTED INVESTMENTS
Pacific Progressive Fund may invest in the following permitted investments:
• Securities traded on the KLSE and any other market considered as an Eligible Market.
• Fixed income securities traded in or under the rules of an Eligible Market.
• Fixed income securities issued by Bank Negara Malaysia, the Malaysian Government and government related
agencies such as Danamodal Nasional Berhad, Pengurusan Danaharta Nasional Berhad, Khazanah Nasional Berhad and
Cagamas Berhad.
• Unlisted fixed income securities which are either bank-guaranteed or rated by Rating Agency Malaysia Bhd, Malaysia
Rating Corporation Bhd or other recognised rating agencies.
• Liquid assets such as Malaysian currency deposits and money market instruments with commercial banks, finance
companies, merchant banks, discount houses and Bank Islam Malaysia Berhad including Investment Certificates,
placement of monies at call with discount houses, and any other instrument capable of being converted into cash within
seven days as may be approved by the Trustee.
• Futures contracts traded in futures markets of an exchange approved under the Futures Industry Act 1993, only for
hedging purposes. These include:
- KLSE Composite Index futures contracts traded on Malaysian Derivatives Exchange (MDEX);
- 3-month KLIBOR Interest Rates futures contracts traded on MDEX; and
- Any new derivatives instruments introduced by MDEX.
• Any other investments as may be agreed upon by the Manager and the Trustee and permitted by the Securities
Commission’s Guidelines from time to time.
INVESTMENT RESTRICTIONS AND LIMITS
The purchase of investments shall be subject to the following restrictions:
Spread Of Investments On Single Issuer
• The value of the Fund’s holding of the share capital of any single issuer must not exceed 10% of the NAV of the Fund
or any other limit set by the Securities Commission.
• The value of the Fund’s holding of the securities of, and the securities relating to, any single issuer must not exceed 15%
of the NAV of the Fund or any other limit set by the Securities Commission.
Spread Of Investments On Groups Of Companies
• The value of the Fund’s holding of the securities of, and the securities relating to, any group of companies shall not
exceed 20% of the NAV of the Fund or any other limit set by the Securities Commission.
• The value of the Fund’s holding in the securities of and the securities relating to, any group of companies may exceed
20% of the Fund’s NAV provided there are acceptable reasons for exceeding the limit. In this regard, the Manager shall
notify the Securities Commission and the Trustee immediately of reasons for exceeding the limit. Where reasons are not
considered satisfactory, the Securities Commission and/or the Trustee may direct the Manager to comply strictly with the
20% investment restriction.
Concentration Of Investments
• The Fund’s holding of any class of security of any single issuer must not exceed 10% of the security issued or any other
limit set by the Securities Commission.
Permissible Grade For Fixed Income Investments
• The Fund’s holding of any single issuer must be rated at least BBB (or equivalent) and above or short-term rating of P3
and above by Rating Agency Malaysia Bhd (RAM) or Malaysia Rating Corporation Bhd (MARC).
Futures Contracts
• The Fund’s net market exposure owing to its futures contract positions must not exceed the Fund’s NAV.
The investment restrictions and limits must be complied with at all times based on the most up-to-date value of the Fund’s
investments. However, a maximum of 5% allowance in excess of the restrictions is permitted where the restriction is
breached through appreciation or depreciation of the NAV of the Fund. The Manager will take all necessary steps and
actions to rectify any breach within reasonable period of not more than three months from the date of the breach.
The Fund shall not borrow in connection with its activities or lend any of its cash or investments unless permitted by the
Guidelines or other laws or regulations pertaining to unit trusts.
64
MORE INFORMATION ABOUT THE FUNDS
HOW IS THE FUND’S PERFORMANCE?
Performance Chart
(as per the annual report for the financial year ended 31 December 2002)
Launch Date : 2 January 2001
Performance Benchmark : RHB Tech Index*
40
30
Return (%)
20
10
0
-10
-20
Pacific Progressive Fund
31.12.2002
30.09.2002
30.06.2002
31.03.2002
31.12.2001
30.09.2001
30.06.2001
31.03.2001
02.01.2001
-30
RHB Tech Index
From 2 January 2001 To 31 December 2002
Performance Data
1 Year’s Period
01.01.2002
to
31.12.2002
Total
Average
Return
Annual
Return
Since Launch
02.01.2001
to
31.12.2002
Total
Average
Return
Annual
Return
Pacific Progressive Fund
(10.48%)
(10.48%)
5.84%
2.92%
RHB Tech Index
(11.97%)
(11.97%)
(3.08%)
(1.54%)
* The benchmark for the Fund is widely used and publicly available from newspaper publications such as The Star and
News Straits Times on a daily basis. It would also be published as a comparison against the Fund’s total return on a
periodic basis, in the Fund’s annual and interim reports and Pacific Mutual’s quarterly Funds’ publication, Close Watch.
Note: The basis of calculating the Fund’s return is in line with the method used by Standard & Poor’s Fund Services Asia Ltd.
Investors should consider the fees and charges involved. The price of units and distributions payable, if any, may go
up as well as down.
Past performance of the Fund is not an indication of its future performance.
65
MORE INFORMATION ABOUT THE FUNDS
Distribution/Unit Split
Year Ended 31 December
2002
Source Of Income For Distribution:
Interest income
Dividend income
Profit on sale of quoted investments
Previous year’s realised gains
Distribution equalisation
2001
RM’000
%
RM’000
%
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Gross Distribution Per Unit (sen)
–
–
Distribution Per Unit:
Taxable income (sen)
Malaysian taxation (sen)
Non-allowable expenses (sen)
Non-taxable income (sen)
Distribution equalisation (sen)
–
–
–
–
–
–
–
–
–
–
Net Distribution Per Unit (sen)
–
–
Unit Split Ratio
–
8:100
0.4655
0.4655
0.55
0.52
NAV per unit (RM) *
Cum-unit split
Ex-unit split
* With effect from 29 July 2002, the NAV per unit is quoted at four decimal places.
Past earnings or the Fund’s distributions record is not a guarantee or a reflection of the Fund’s future
earnings/distributions.
66
MORE INFORMATION ABOUT THE FUNDS
Portfolio Turnover Explanation
The portfolio turnover ratio for the financial year ended 31 December 2002 is 0.86 times (2001: 0.82 times). Higher
portfolio turnover was due to a higher percentage increase in the average transactional value of 138.4% i.e. from
RM8.07 million in 2001 to RM19.24 million in 2002 compared to increase in the average NAV of 127.2%. Please refer to
page (iii) for definition on portfolio turnover ratio (PTR).
Investment Highlights
Financial Year Ended
Top 5 Equity Securities (Malaysia)
% of NAV
31 December 2001
1.
2.
3.
4.
5.
The New Straits Times Press (M) Bhd
Malaysian Pacific Industries Bhd
Computer Systems Advisers (M) Bhd
Star Publications (Malaysia) Bhd
Unisem (M) Bhd
10.66
9.80
8.95
8.32
7.84
31 December 2002
1.
2.
3.
4.
5.
The New Straits Times Press (M) Bhd
Star Publications (Malaysia) Bhd
Maxis Communications Bhd
Globetronics Technology Bhd
AKN Technology Bhd
8.34
7.13
5.81
5.71
5.70
67
MORE INFORMATION ABOUT THE FUNDS
SYARIAH-BASED FUNDS
WHY INVEST IN PACIFIC DANA AMAN?
WHAT IS THE FUND’S INVESTMENT OBJECTIVE?
The Fund aims to provide the unitholders with consistently above average returns in both income and capital growth over
a medium to long-term period by investing in a wide portfolio of authorised securities over investments which comply
with Syariah principles.
Any changes to the Fund’s investment objective would require unitholders’ approval.
Distribution policy: By way of income distribution, if any, once a year.
Unit split: Once a year, if any.
Type of fund: The Fund is a growth and income fund.
Category of fund: The Fund is a balanced Islamic fund.
WHO SHOULD CONSIDER INVESTING?
Investors seeking above average income and capital growth over the medium to long term in investments, while abiding
by Syariah principles.
WHAT ARE THE LIKELY BENEFITS?
The Fund primarily invests in a diversified investment portfolio that is acceptable under the Syariah principles. The Fund
allows investors the opportunity to benefit from returns which are potentially higher than fixed deposit rates over a
medium to long-term period.
RISK FACTORS
Pacific Dana Aman is subject to several risk factors including the following (please refer to pages 5 to 7 for descriptions of
these and other risk factors as well as page 79 for the risk management strategies and techniques):
• Market risk
• Company specific risk
• Interest rate risk
• Credit risk
• Futures risk
The Fund is prohibited from investing in interest bearing debt securities. However, interest rate changes do affect the
market value of the Islamic debt securities portion of the Fund’s portfolio.
The above interest rate risk is a general economic indicator that will have an impact on the management of fund
regardless of whether it is a Syariah-based fund or otherwise. It does not in any way suggest that this Fund will invest in
fixed income securities, which are not approved by Syariah. All the investments carried out for this Fund are in accordance
with the requirement of Syariah.
WHAT IS THE FUND’S INVESTMENT STRATEGY?
To achieve the Fund’s objective of providing investors with consistently above average income higher than that of fixed
deposit rates and capital appreciation, the Manager normally constructs a diversified investment portfolio that is
acceptable under the Syariah principles.
In upholding the spirit of the Islamic concept of fund management, the Manager invests solely in companies that are
approved by the Syariah Advisory Council of the Securities Commission and in Islamic debt securities that comply with
Syariah principles. Accordingly, the Fund will not invest in companies that are involved in conventional banking and
finance, non-Takaful insurance, gaming, alcoholic beverages and non-halal food products.
Derivative
Instruments
1.78%
Quoted
Equity
Securities
67.89%
Unquoted
Islamic Debt
Securities
15.07%
Portfolio Structure
(as per the annual report
for the financial year ended
31 March 2003)
Islamic
Money
Market
Instruments
15.26%
Launch Date : 16 April 1998
68
MORE INFORMATION ABOUT THE FUNDS
Asset Allocation
The Fund may invest up to 75% (minimum equity allocation is 35%) of its NAV in equities and equity-related securities but
this may be reviewed from time to time depending on the economic and stock market conditions. Minimum Islamic debt
allocation is set at 10%. Liquid assets will be maintained at all times at a minimum of 5% of the Fund’s NAV.
The liquid assets of the Fund will be in Islamic debt securities and other non-interest bearing assets. Accordingly, the Fund
will not purchase bonds, debentures or other interest paying obligations.
While the maximum limit for equity investments is 75%, actual asset allocation varies according to the Manager’s
investment outlook and investment strategies after taking into consideration the prevailing market conditions. Based on
the risk-return profile of the Fund, the neutral asset allocation (or long-term average asset allocation) is expected to be
55% in equities and 45% in Islamic debt securities and liquid assets.
Please also refer to page 79.
• Equity Investment Strategy
The Fund will invest in a diversified portfolio of equities that comply with the Syariah principles.
The investment strategy is based on a disciplined “top-down” approach to asset allocation and sector allocation, using
macroeconomic analysis, market analysis and industry analysis. Stock selection techniques are based on a “bottom-up”
approach using business analysis and security valuation analysis. There is significant overlap between the various
disciplines governing these processes, with strong interaction between the determination of asset allocation and stock
selection.
• Debt Security Investment Strategy
The Manager’s strategy hinges on the need for a well-diversified portfolio and focuses on the credit qualities of
securities in the portfolio. The debt securities portfolio construction process is research driven and is based on
macroeconomic analysis, interest rate analysis, credit analysis and yield spread analysis. Other than the development of
a broad asset allocation model, contributions will be made via active management to capitalise on changes in interest
rates, inter-sector yield spreads and yield spreads of specific debt securities.
PERMITTED INVESTMENTS
Pacific Dana Aman may invest in the following permitted investments:
• Securities that are approved by the Syariah Advisory Committee of the Securities Commission and are traded on the
KLSE and any other market considered as an Eligible Market.
• Islamic debt securities traded in or under the rules of an Eligible Market.
• Islamic debt securities issued by Bank Negara Malaysia and government related agencies.
• Unlisted Islamic debt securities which are rated by Rating Agency Malaysia Bhd, Malaysia Rating Corporation Bhd or
other recognised rating agencies.
• Liquid assets such as Malaysian currency deposits under Islamic Banking, money market instruments that comply with
Syariah principles and any other Syariah-compliant instrument capable of being converted into cash within seven days
as may be approved by the Trustee.
• Islamic futures contracts and other approved Islamic derivative instruments traded in futures markets of an exchange
approved under the Futures Industry Act 1993, only for hedging purposes.
• Any other investments as may be agreed upon by the Manager and the Trustee and permitted by the Securities
Commission’s Guidelines from time to time.
69
MORE INFORMATION ABOUT THE FUNDS
INVESTMENT RESTRICTIONS AND LIMITS
The purchase of investments shall be subject to the following restrictions:
Spread Of Investments On Single Issuer
• The value of the Fund’s holding of the share capital of any single issuer must not exceed 10% of the NAV of the Fund
or any other limit set by the Securities Commission.
• The value of the Fund’s holding of the securities of, and the securities relating to, any single issuer must not exceed 15%
of the NAV of the Fund or any other limit set by the Securities Commission.
Spread Of Investments On Groups Of Companies
• The value of the Fund’s holding of the securities of, and the securities relating to, any group of companies shall not
exceed 20% of the NAV of the Fund or any other limit set by the Securities Commission.
• The value of the Fund’s holding in the securities of and the securities relating to, any group of companies may exceed
20% of the Fund’s NAV provided there are acceptable reasons for exceeding the limit. In this regard, the Manager shall
notify the Securities Commission and the Trustee immediately of reasons for exceeding the limit. Where reasons are not
considered satisfactory, the Securities Commission and/or the Trustee may direct the Manager to comply strictly with the
20% investment restriction.
Concentration Of Investments
• The Fund’s holding of any class of security of any single issuer must not exceed 10% of the security issued or any other
limit set by the Securities Commission.
Permissible Grade For Islamic Debt Securities Investments
• The Fund’s holding of any single issuer must be rated at least BBB (or equivalent) and above or short-term rating of P3
and above by Rating Agency Malaysia Bhd (RAM) or Malaysia Rating Corporation Bhd (MARC).
Futures Contracts
• The Fund’s net market exposure owing to its futures contract positions must not exceed the Fund’s NAV.
The investment restrictions and limits must be complied with at all times based on the most up-to-date value of the Fund’s
investments. However, a maximum of 5% allowance in excess of the restrictions is permitted where the restriction is
breached through appreciation or depreciation of the NAV of the Fund. The Manager will take all necessary steps and
actions to rectify any breach within reasonable period of not more than three months from the date of the breach.
The Fund shall not borrow in connection with its activities or lend any of its cash or investments unless permitted by the
Guidelines or other laws or regulations pertaining to unit trusts.
70
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HOW IS THE FUND’S PERFORMANCE?
Performance Chart
(as per the annual report for the financial year ended 31 March 2003)
Launch Date : 16 April 1998
Performance Benchmark : RHB Islamic Index*
150
120
90
Return (%)
60
30
0
-30
-60
Pacific Dana Aman
31.03.2003
30.09.2002
31.03.2002
30.09.2001
31.03.2001
30.11.2000
31.05.2000
30.11.1999
31.05.1999
30.11.1998
16.04.1998
-90
RHB Islamic Index
From 16 April 1998 To 31 March 2003
Performance Data
1 Year’s Period
01.04.2002
to
31.03.2003
Total
Average
Return
Annual
Return
3 Years’ Period
01.04.2000
to
31.03.2003
Total
Average
Return
Annual
Return
Since Launch
16.04.1998
to
31.03.2003
Total
Average
Return
Annual
Return
Pacific Dana Aman
(5.72%)
(5.72%)
(20.06%)
(6.69%)
90.08%
18.16%
RHB Islamic Index
(15.36%)
(15.36%)
(39.13%)
(13.04%)
(8.77%)
(1.77%)
* The benchmark for the Fund is widely used and publicly available from newspaper publications such as The Star and
News Straits Times on a daily basis. It would be published as a comparison against the Fund’s total return on a periodic
basis, in the Fund’s annual and interim reports and Pacific Mutual’s quarterly Funds’ publication, Close Watch.
Note: The basis of calculating the Fund’s return is in line with the method used by Standard & Poor’s Fund Services Asia Ltd.
Investors should consider the fees and charges involved. The price of units and distributions payable, if any, may go
up as well as down.
Past performance of the Fund is not an indication of its future performance.
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Distribution/Unit Split
Year Ended 31 March
2003
Source Of Income For Distribution:
Dividend income
Profit from Islamic money market
instruments and unquoted Islamic
debt securities.
Realised gain on sale of investments
Accretion of discount less amortisation
of premium on unquoted Islamic
debt securities
Soft commissions
Previous year’s realised gains
Distribution equalisation
2001*
%
RM’000
%
RM’000
%
3,094
8.18
517
7.99
422
10.49
3,190
1,103
8.43
2.91
622
–
9.62
–
674
109
16.75
2.71
–
105
9,901
20,433
37,826
–
0.28
26.18
54.02
100.00
–
–
960
4,369
6,468
–
–
14.84
67.55
100.00
61
–
463
2,295
4,024
1.52
–
11.51
57.02
100.00
Gross Distribution Per Unit (sen)
9.00
4.00
4.00
Distribution Per Unit:
Taxable income (sen)
Malaysian taxation (sen)
Non-allowable expenses (sen)
Non-taxable income (sen)
Distribution equalisation (sen)
0.46
(0.12)
(0.80)
2.23
7.11
0.07
(0.02)
(0.23)
1.30
2.86
0.04
(0.01)
(0.21)
1.77
2.40
Net Distribution Per Unit (sen)
8.88
3.98
3.99
–
–
7:100
0.4526
0.4134
0.48
0.45
0.54
0.47
Unit Split Ratio
NAV per unit (RM) **
Cum-unit split
Ex-unit split
*
2002
RM’000
During this financial period, Pacific Dana Aman changed its financial year-end from 31 May to 31 March. The financial period ended
31 March 2001 represents a period of 10 months from 1 June 2000.
** With effect from 29 July 2002, the NAV per unit is quoted at four decimal places.
Past earnings or the Fund’s distributions record is not a guarantee or a reflection of the Fund’s future
earnings/distributions.
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Portfolio Turnover Explanation
The portfolio turnover ratio for the financial year ended 31 March 2003 is 0.55 times (2002: 0.58 times). Lower portfolio
turnover was due to a higher percentage increase in the average NAV of 152.86% from RM77.77 million in 2002 to
RM196.65 million in 2003 compared to 136.93% increase in the average transactional value i.e. from RM45.28 million in
2002 to RM107.28 million in 2003. Please refer to page (iii) for definition on portfolio turnover ratio (PTR).
Investment Highlights
Financial Year Ended
31 March 2001
31 March 2002
31 March 2003
Top 5 Equity Securities (Malaysia)
1.
Asia File Corporation Bhd
3.63
2.
Malakoff Bhd
3.15
3.
Gamuda Bhd
2.86
4.
Malaysian Pacific Industries Bhd
2.81
5.
Unisem (M) Bhd
2.70
1.
Tenaga Nasional Bhd
4.64
2.
Gamuda Bhd
3.39
3.
Malaysia International Shipping Corporation Bhd – Foreign
3.35
4.
Road Builder (M) Holdings Bhd
3.30
5.
IJM Corporation Bhd
3.11
1.
Perusahaan Otomobil Nasional Bhd
4.78
2.
O.Y.L. Industries Bhd
3.64
3.
Star Publications (Malaysia) Bhd
3.63
4.
Tenaga Nasional Bhd
3.62
5.
Maxis Communications Bhd
3.33
Financial Year Ended
31 March 2001
31 March 2002
31 March 2003
% of NAV
Top 3 Unquoted Islamic Debt Securities
% of NAV
1.
Prai Power Sdn Bhd
2.
Penang Bridge Sdn Bhd
6.37
3.
Syarikat Pengeluar Air Sungai Sdn Bhd
4.95
1.
Tenaga Nasional Bhd
4.00
2.
GB3 Sdn Bhd
2.76
3.
Hong Leong Industries Bhd
1.78
1.
Celcom (Malaysia) Bhd
5.85
2.
Tenaga Nasional Bhd
4.62
3.
Hong Leong Industries Bhd
4.60
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8.61
WHY INVEST IN PACIFIC DANA MURNI?
WHAT IS THE FUND’S INVESTMENT OBJECTIVE?
The Fund aims to achieve a stable income stream with reasonable protection of capital by investing in a diversified
portfolio of Islamic debt securities and other liquid assets which comply with Syariah principles. The Fund may also provide
some degree of capital growth potential over a medium to long-term period.
Any changes to the Fund’s investment objective would require unitholders’ approval.
Distribution policy: By way of income distribution, if any, once a year.
Type of fund: The Fund is an Islamic income fund.
Category of fund: The Fund is an Islamic bond fund.
WHO SHOULD CONSIDER INVESTING?
Investors seeking steady returns higher than general investment accounts with reasonable protection of capital, while
abiding by the Syariah principles. It is suitable for investors seeking a regular income stream and moderate capital growth.
WHAT ARE THE LIKELY BENEFITS?
By investing in this Fund, investors would be able to reap the following benefits:
• Gain access to the reasonably high yielding debt market, which normally trades in large standard blocks of RM5 million
each;
• Reduce the specific risk of a single debt security by investing in a diversified portfolio of debt securities; and
• Sell at any time based on the Fund’s NAV without worrying that the securities are illiquid.
RISK FACTORS
Pacific Dana Murni is subject to several risk factors including the following (please refer to pages 5 to 7 for descriptions of
these and other risk factors as well as page 79 for the risk management strategies and techniques):
• Market risk
• Company specific risk
• Interest rate risk
• Credit risk
• Futures risk
The above interest rate risk is a general economic indicator that will have an impact on the management of fund
regardless of whether it is a Syariah-based fund or otherwise. It does not in any way suggest that this Fund will invest in
fixed income securities, which are not approved by Syariah. All the investments carried out for this Fund are in accordance
with the requirement of Syariah.
WHAT IS THE FUND’S INVESTMENT STRATEGY?
To attain the Fund’s objective of achieving a stable income stream with reasonable protection of capital, the Fund will
invest in a diversified portfolio of predominantly private debt securities, which generally produce higher yield than
government bonds and money market instruments.
In upholding the spirit of the Islamic concept of fund management, the Fund invests solely in Islamic debt securities that
are approved by the Securities Commission. With this, investors of the Fund will benefit not only from the higher returns
of debt securities but also are assured that their investments comply with Syariah principles at all times.
Asset Allocation
The Fund may invest up to 95% (minimum Islamic debt allocation is 40%) of its NAV in Islamic debt securities. Liquid assets
will be maintained at all times at a minimum of 5% of the Fund’s NAV.
While the maximum limit for bond investments is 95%, asset allocation employed varies according to the Manager’s
investment outlook and investment strategies after taking into consideration the prevailing market conditions. Based on
the risk-return profile of the Fund, the neutral asset allocation (or long-term average asset allocation) is expected to be
70% in bonds and 30% in liquid assets.
Please also refer to page 79.
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MORE INFORMATION ABOUT THE FUNDS
• Fixed Income Security Investment Strategy
In managing the Fund’s investments in fixed income securities, the Manager’s strategy hinges on the need for a
well-diversified portfolio and focus on the credit qualities of securities in the portfolio. The fixed income portfolio
construction process is research driven and based on macroeconomic analysis, interest rate analysis, credit analysis and
yield spread analysis. Other than the development of a broad asset allocation model, contributions will be made via active
management to capitalise on changes in interest rates, inter-sector yield spreads and yield spreads of any specific bonds.
PERMITTED INVESTMENTS
Pacific Dana Murni may invest in the following permitted investments:
• Islamic debt securities traded in or under the rules of an Eligible Market.
• Islamic debt securities issued by Bank Negara Malaysia and government related agencies.
• Unlisted Islamic debt securities which are either bank-guaranteed or rated by Rating Agency Malaysia Bhd, Malaysia
Rating Corporation Bhd or other recognised rating agencies.
• Liquid assets such as Malaysian currency deposits under Islamic Banking, money market instruments that comply with
Syariah principles and any other Syariah-compliant instrument capable of being converted into cash within seven days
as may be approved by the Trustee.
• Islamic futures contracts and other approved Islamic derivative instruments traded in futures markets of an exchange
approved under the Futures Industry Act 1993, only for hedging purposes.
• Any other Syariah-compliant investments as may be agreed upon by the Manager and the Trustee and permitted by the
Securities Commission’s Guidelines from time to time.
INVESTMENT RESTRICTIONS AND LIMITS
The purchase of investments shall be subject to the following restrictions:
Spread Of Investments On Securities Relating To Any Single Issuer
• The value of the Fund’s holding of the fixed income securities of, and the fixed income securities relating to, any single
issuer must not exceed 20% of the NAV of the Fund or any other limit set by the Securities Commission.
Spread Of Investments On Group Of Companies
• The value of the Fund’s holding of the fixed income securities of, and the fixed income securities relating to, any group
of companies shall not exceed 30% of the NAV of the Fund or any other limit set by the Securities Commission.
• The Fund may exceed 30% of the NAV of the Fund if there are acceptable reasons for doing so; in this regard the
Manager shall notify the Securities Commission and the Trustee immediately of reasons for exceeding the limit. Where
reasons are not considered satisfactory, the Securities Commission and/or Trustee may direct the Manager to comply
strictly with the 30% investment restriction.
Concentration Of Investments
• The value of the Fund’s holding of any class of fixed income securities of any single issuer must not exceed 20% of the
fixed income securities issued or any other limit set by the Securities Commission.
Permissible Grade For Islamic Debt Securities Investments
• The Fund’s holding of any single issuer must be rated at least BBB and above or short-term rating of P3 and above by
Rating Agency Malaysia Bhd (RAM) or Malaysia Rating Corporation Bhd (MARC).
Futures Contracts
• The Fund’s net market exposure owing to its futures contract positions must not exceed the Fund’s NAV.
The investment restrictions and limits must be complied with at all times based on the most up-to-date value of the Fund’s
investments. However, a maximum of 5% allowance in excess of the restrictions is permitted where the restriction is
breached through appreciation or depreciation of the NAV of the Fund. The Manager will take all necessary steps and
actions to rectify any breach within reasonable period of not more than three months from the date of the breach.
The Fund shall not borrow in connection with its activities or lend any of its cash or investments unless permitted by the
Guidelines or other laws or regulations pertaining to unit trusts.
PERFORMANCE BENCHMARK
The benchmark for the Fund is the Mayban GIA Tier II 12-month Rate* and publicly available from newspaper publications
such as The Star and News Straits Times on a daily basis. It would be published as a comparison against the Fund’s total return
on a periodic basis, in the Fund’s annual and interim reports and Pacific Mutual’s quarterly Funds’ publication, Close Watch.
* GIA refers to general investment account. It has the same attributes as conventional fixed deposits except it upholds Syariah
principle. The tier II 12-month rate refers to the 12-month rate offered to placements in excess of RM1 million. Only
placements within RM1 millioin qualifies for the board rate or tier I rate which is higher than the tier II rate.
Pacific Dana Murni was launched on 25 March 2003 and its first financial year will end on 31 March 2004. Therefore, there
is no data on performance, distribution and investment highlights published in this Prospectus for the Fund.
Past performance of the Funds is not an indication of the future performance.
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WHY INVEST IN PACIFIC DANA KLSI?
WHAT IS THE FUND’S INVESTMENT OBJECTIVE?
The Fund aims to provide medium to long-term capital growth by tracking the KLSE Syariah Index (KLSI).
Any changes to the Fund’s investment objective would require unitholders’ approval.
Distribution policy: By way of income distribution, if any, once a year.
Type of fund: The Fund is an Islamic growth and income fund.
Category of fund: The Fund is an Islamic index fund.
WHO SHOULD CONSIDER INVESTING?
Investors who seek capital growth in the medium to long term, while abiding by the Syariah principles, and who have a
moderate to high tolerance level for risks.
WHAT ARE THE LIKELY BENEFITS?
By investing in this Fund, investors would be able to reap the following benefits:
• The KLSI comprises over 300 stocks of companies from a wide range of industries. Investors have the benefit of broad
diversification.
• Except for trading charges related to infrequent equity allocation changes, the Fund incurs trading charges only when
rebalancing component stocks. This is done twice a year when the KLSE changes the component stocks of the KLSI
with the advice of the Syariah Advisory Committee. This results in lower trading charges and higher net returns in the
long term.
• Index funds offer the advantage of lower service charges and management fees compared to normal equity funds.
RISK FACTORS
Pacific Dana KLSI is subject to several risk factors, some of which are as follows: (please refer to pages 5 to 7 for descriptions
of these and other risk factors as well as page 79 for the risk management strategies and techniques):
• Market risk
• Company specific risk
• Futures risk
WHAT IS THE FUND’S INVESTMENT STRATEGY?
The Fund will invest only in KLSI component stocks. The weighting of a stock in the portfolio will be proportionate to its
composition in the KLSI. Weightings will be rebalanced only when there is a significant change in the composition of
the KLSI.
Stock selection will not be a strategy employed by the Fund.
Asset Allocation
The Fund may invest up to a maximum of 95% (minimum equity allocation is 45%) of its NAV in KLSI component stocks.
Liquid assets will be maintained at all times at a minimum of 5% of the Fund’s NAV.
Asset allocation will be varied in accordance with the Manager’s investment outlook and investment strategy after taking
into consideration the prevailing market conditions. Based on the risk-return profile of the Fund, the neutral asset
allocation (or long-term average asset allocation) is expected to be 85% in equities and 15% in liquid assets.
Please also refer to page 79.
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PERMITTED INVESTMENTS
Pacific Dana KLSI may invest in the following permitted investments:
• Securities that are approved by the Syariah Advisory Committee of the Securities Commission and are traded on the
KLSE and any other market considered as an Eligible Market.
• Liquid assets such as Malaysian currency deposits under Islamic Banking, money market instruments that comply with
Syariah principles and any other Syariah-compliant instrument capable of being converted into cash within seven days
as may be approved by the Trustee.
• Islamic futures contracts and other approved Islamic derivative instruments traded in futures markets of an exchange
approved under the Futures Industry Act 1993, only for hedging purposes.
• Any other Syariah-compliant investments as may be agreed upon by the Manager and the Trustee and permitted by the
Securities Commission’s Guidelines from time to time.
INVESTMENT RESTRICTIONS AND LIMITS
The purchase of investments shall be subject to the following restrictions:
Spread Of Investments On Single Issuer*
• The value of the Fund’s holding of the share capital of any single issuer must not exceed 10% of the NAV of the Fund
or the weighting of the constituent securities in the KLSI, whichever is higher.
Spread Of Investments On Securities Relating To Any Single Issuer
• The value of the Fund’s holding of the securities of, and the securities relating to, any single issuer must not exceed 15%
of the NAV of the Fund or any other limit set by the Securities Commission.
Spread Of Investments On Group Of Companies*
• The value of the Fund’s holding of the securities of, and the securities relating to, any group of companies in the KLSI
shall not exceed 30% of the NAV of the Fund or any other limit set by the Securities Commission.
• The Fund may exceed 30% of the NAV of the Fund if there are acceptable reasons for doing so; in this regard the
Manager shall notify the Securities Commission and the Trustee immediately of reasons for exceeding the limit. Where
reasons are not considered satisfactory, the Securities Commission and/or Trustee may direct the Manager to comply
strictly with the 30% investment restriction.
Concentration Of Investments
• The value of the Fund’s holding of any class of security of any single issuer must not exceed 10% of the security issued
or any other limit set by the Securities Commission.
* The Fund has obtained the Securities Commission’s approval for the variations of the investment restrictions and limits
as provided in the Securities Commission’s Guidelines.
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Permissible Grade For Islamic Debt Securities Investments
• The Fund’s holding of any single issuer must be rated at least BBB and above or short-term rating of P3 and above by
Rating Agency Malaysia Bhd (RAM) or Malaysia Rating Corporation Bhd (MARC).
Futures Contracts
• The Fund’s net market exposure owing to its futures contract positions must not exceed the Fund’s NAV.
The investment restrictions and limits must be complied with at all times based on the most up-to-date value of the Fund’s
investment. However, a maximum of 5% allowance in excess of the restrictions is permitted where the restriction is
breached through appreciation or depreciation of the NAV of the Fund. The Manager will take all necessary steps and
actions to rectify any breach within reasonable period of not more than three months from the date of the breach.
The Fund shall not borrow in connection with its activities or lend any of its cash or investments unless permitted by the
Guidelines or other laws or regulations pertaining to unit trusts.
PERFORMANCE BENCHMARK
The benchmark for the Fund is the KLSE Syariah Index (KLSI) and publicly available from newspaper publications such as
The Star and News Straits Times on a daily basis. It would be published as a comparison against the Fund’s total return on
a periodic basis, in the Fund’s annual and interim reports and Pacific Mutual’s quarterly Funds’ publication, Close Watch.
Pacific Dana KLSI was launched on 25 March 2003 and its first financial year will end on 31 March 2004. Therefore, there
is no data on performance, distribution and investment highlights published in this Prospectus for the Fund.
Past performance of the Funds is not an indication of the future performance.
ADDITIONAL INFORMATION ABOUT THE FUND
• Pacific Dana KLSI is designed to track the KLSE Syariah Index (KLSI). The KLSI is a capitalisation-weighted index of all
KLSE mainboard stocks that comply with the Syariah Approved Securites by the Syariah Advisory Council of the
Securities Commission.
• The KLSI comprises of more than 400 stocks. To minimise transaction costs and liquidity risks, Pacific Dana KLSI will
replicate the KLSI by using a representative sample of the component stocks of the KLSI. The sample comprises of the
top 30 to 50 stocks ranked by market capitalisation on the KLSI.
• Tracking error arises when the representative sample does not replicate fully the fluctuations of the KLSI. This may be
the result of changes in the KLSI from introduction of new listings or when stocks not included in the sample undergo
huge price movements. As such, the representative sample of stocks may be modified from time to time to replicate the
KLSI more accurately.
• Risks of investing in an index fund include market risk (please refer to page 5).
• Pacific Dana KLSI will be re-balanced when there is a material difference in the weightings of the stocks in the KLSI and
the representative sample of stocks. Checks are made twice a month. Besides rebalancing, the equity allocation of the
Fund may be increased or reduced in accordance with the Manager’s view of the market direction.
• The top ten component securities and weightings of the KLSI and in the Fund’s representative sample as at 23 October
2003 are as follow:
Weightings
Top 10 Component Securities
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Tenaga Nasional Bhd
Telekom Malaysia Bhd
MISC Bhd
Maxis Communications Bhd
Petronas Gas Bhd
Sime Darby Bhd
IOI Corporation Bhd
YTL Power Bhd
YTL Corporation Bhd
Nestle (M) Bhd
KLSI
Fund’s Representative Sample
8.6%
8.7%
6.0%
5.6%
4.6%
3.9%
2.5%
2.3%
2.0%
1.5%
11.8%
11.8%
8.1%
7.7%
6.2%
5.3%
3.4%
3.2%
2.7%
2.1%
• Pacific Mutual Fund Bhd does not guarantee that Pacific Dana KLSI will fully replicate the KLSI at any one time.
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RISK MANAGEMENT STRATEGIES AND TECHNIQUES
The Manager’s risk management strategy is to conduct fundamental analysis of economic, political and social factors, on
a local and global basis, to evaluate their likely effects on the performance of equity and fixed income markets and sectors.
Individual stocks and fixed income securities are further screened by detailed analysis of each security and its underlying
business and fundamentals. For Syariah-based Funds, further consideration is given to the nature of the investments to
ensure that they are fully in compliance with Syariah principles.
In terms of the Fund’s portfolio, risk is controlled by strict diversification on both a sector and individual investment
instrument basis. The Manager also uses active asset allocation to reduce or increase the Funds’ exposure to various
investment instruments depending on the risk reward potential for each investment. This could include the use of futures
for hedging purposes as it could be a more efficient portfolio risk management strategy. Specific risk management
strategies for general fund risks can also be found on pages 5 to 7 of this Prospectus.
The Funds will be guided by the following general principles to control company specific risk*:
• Ensure that the risk taken for any specific security is not too large and a reasonable spread of active risk is maintained
across different sectors. Investments which have low contributions to active risk will have larger position limits than
investments which have high contributions to active risk. The limit per security will be within the limit set by the
Investment Committee in compliance with the Securities Commission’s Guidelines on Unit Trust Funds.
• Ensure that the risk associated with the totality of positions taken for the group of companies or the same industries is
not too large and within limit set by the Securities Commission.
In addition, the following investment procedures and internal controls are designed to control operational risk**:
• There is strict segregation of duties between securities trading, confirmation and settlement.
• There are rules on trading and prohibiting employees to act on insider information. The Senior Compliance Officer
will monitor adherence and enforce disciplinary actions on any employee who has breached the code of conduct
and compliance.
• There is daily computation of the respective Fund’s NAV and independent verification and reconciliation.
• There are procedures for Senior Management, Trustee, Investment Committee and the Board of Directors to be
informed promptly, to investigate and to ensure timely and appropriate rectification of any deviation and noncompliance that may arise.
• There are limits to the placement maintained at financial institutions to manage credit risk exposure.
• There are limits on shares traded with stock brokers to manage settlement risk exposure.
• There are limits and criteria set on credit rating of debt securities.
* Company specific risk refers to external risk associated with the listed company’s share price movements.
** Operational risk refers to the internal risk associated with inadequate systems and controls.
MINIMUM AND MAXIMUM LEVELS OF ASSET ALLOCATION
The asset allocation may be reduced to below the minimum levels or increased above the maximum levels indicated at the
discretion of the Manager depending on the market, economic, political or other conditions. Such conditions or
exceptional circumstances will include but not limited to:
• Situations where there is an expected sharp downturn in the equity market;
• When there is high risk of capital loss on fixed income instruments due to interest rate fluctuations;
• When there is insufficient liquidity in either equity or fixed income instruments for the Funds to transact efficiently;
• When there is insufficient fund assets to form an efficient portfolio; and/or
• When there is redemption affecting the liquidity position of the Funds.
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TRADING ACTIVITIES
A small portion of the Funds (except Pacific Dana KLSI) may be utilised for short-term trading, when opportunities
arise. Opportunities would include but are not limited to arbitrage situations, discrepancies in valuation, expected liquidity
surges and thematic plays. When there are no opportunities, the Fund will not conduct any short-term trading.
BASES OF VALUATION OF INVESTMENTS
The Funds shall adopt the bases of valuation of investments prescribed in the Guidelines on Unit Trust Funds. In particular,
quoted securities will be valued based on the last done market price. Unquoted securities will be valued based on
fair value as determined in good faith on methods which are verified by the auditors of the Funds and approved by
the Trustees. Unquoted debt securities will be marked to market, taking the average price obtained from at least three
independent dealers, and the valuation will be done at least once a week. In terms of a successful subscription to an Initial
Public Offerings (IPO), if any, the IPO securities will be valued at cost prior to their listing. These IPO securities will
subsequently be valued at their last done market price upon listing.
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FEES, CHARGES AND EXPENSES
SERVICE CHARGE
The service charge is a fee levied on the purchase of units of a Fund. This includes marketing, advertising and distribution
expenses of a Fund. The fee is said to be ‘front loaded’ because it is deducted upfront from the purchase amount, leaving
only the net amount invested in a Fund. The following table outlines the service charges of the respective Funds:
Fund
Service Charge
Pacific Premier Fund
5.00% - 7.00% of NAV per unit
Pacific Pearl Fund
5.00% - 7.00% of NAV per unit
Pacific Dana Aman
5.00% - 7.00% of NAV per unit
Pacific Millennium Fund
5.00% - 7.00% of NAV per unit
Pacific Recovery Fund
5.00% - 7.00% of NAV per unit
Pacific Income Fund
Not more than 5.00% of NAV per unit
Pacific Progressive Fund
5.00% - 7.00% of NAV per unit
Pacific Dana Murni
2.00% of NAV per unit
Pacific Dana KLSI
Up to 5.00% of NAV per unit
The service charge is calculated based on the NAV per unit of a Fund as at the next valuation point after the application
is received by the Manager.
Example:
Assuming the NAV per unit on 31 July 2003 to be RM0.476754 and with a service charge of 6.88% levied, the selling price
of a unit would be as follows:
Per Unit
RM
NAV
0.476754
(paid to Fund)
Service charge
0.032801
(paid to Manager)
0.509555
Rounding adjustment
0.000045
Selling Price
0.509600
(paid to Manager)
The Manager pays part or all the service charge of a Fund to its distributors as commission.
REPURCHASE CHARGE
There is no repurchase charge for all Pacific Mutual’s Funds.
81
FEES, CHARGES AND EXPENSES
ANNUAL MANAGEMENT FEE
The annual management fee is a fee charged by the Manager for the ongoing portfolio management and administration
of a Fund (e.g. maintenance of unitholders’ register, maintenance of proper records of a Fund and investment
administration). The following table outlines the annual management fees of the respective Funds:
Fund
Annual Management Fee
Pacific Premier Fund
1.50% p.a. of the NAV of the Fund
Pacific Pearl Fund
1.50% p.a. of the NAV of the Fund
Pacific Dana Aman
1.50% p.a. of the NAV of the Fund
Pacific Millennium Fund
1.50% p.a. of the NAV of the Fund
Pacific Recovery Fund
1.50% p.a. of the NAV of the Fund
Pacific Income Fund
1.50% p.a. of the NAV of the Fund
Pacific Progressive Fund
1.50% p.a. of the NAV of the Fund
Pacific Dana Murni
1.00% p.a. of the NAV of the Fund
Pacific Dana KLSI
1.00% p.a. of the NAV of the Fund
The annual management fee is calculated based on the NAV of the Funds at the respective Fund’s annual management
fee rates, calculated on a daily basis and is paid out of the respective Funds.
Example:
Assuming the NAV of a Fund is RM268,930,000 (before deducting management fee and trustee fee for the day) and with
an annual management fee of 1.50% per annum, the management fee for the day would be as follows:
Management fee for the day
= NAV x Annual Management Fee
365 days
= RM268,930,000 x 1.50%
365
= RM11,051.92
82
FEES, CHARGES AND EXPENSES
ANNUAL TRUSTEE FEE
The annual trustee fee is a fee paid to the Trustee for the custodial management and administration of a Fund’s assets
(e.g. transaction settlement, custody and administration costs). The following table outlines the annual trustee fees of the
respective Funds:
Fund
Pacific Premier Fund
Annual Trustee Fee
0.01% - 0.06% p.a. of the NAV of the Fund calculated on a daily basis
(excluding custodian fee of RM25,000 p.a.)
Pacific Pearl Fund
0.055% p.a. of the NAV of the Fund calculated on a daily basis (excluding
custodian fee of 0.035% p.a.)
Pacific Dana Aman
0.08% p.a. of the NAV of the Fund calculated on a daily basis
Pacific Millennium Fund
0.08% p.a. of the NAV of the Fund calculated on a daily basis
Pacific Recovery Fund
0.08% p.a. of the NAV of the Fund calculated on a daily basis
Pacific Income Fund
0.10% p.a. of the NAV of the Fund calculated on a daily basis
Pacific Progressive Fund
0.10% p.a. of the NAV of the Fund calculated on a daily basis
Pacific Dana Murni
0.07% p.a. of the NAV of the Fund calculated and accrued on a daily basis,
subject to a minimum of RM18,000 p.a. whichever is higher
Pacific Dana KLSI
0.07% p.a. of the NAV of the Fund calculated and accrued on a daily basis,
subject to a minimum of RM18,000 p.a. whichever is higher
The annual trustee fee is calculated based on the NAV of the Funds at the respective Fund’s annual trustee fee rates,
calculated on a daily basis and is paid out of the respective Funds.
Example:
Assuming the NAV of a Fund is RM268,930,000 (before deducting management fee and trustee fee for the day) and with
an annual trustee fee of 0.08% per annum, the trustee fee for the day would be calculated as follows:
Trustee fee for the day
= NAV x Annual Trustee Fee
365 days
= RM268,930,000 x 0.08%
365
= RM589.44
83
FEES, CHARGES AND EXPENSES
SWITCHING FEE
The switching fee is a minimal charge levied on the unitholders by the Manager for administering the switching
transactions and is subject to the terms as set out by the Manager. Charges may vary from one Fund to another. Switching
fee is calculated based on the NAV per unit of the target Fund. The following table outlines the switching fees of the
respective Funds:
Target Fund
Low-Load
Service Charge Fund
(Fund with service charge
of 2% and below)
Reduced-Load
Service Charge Fund
(Fund with service charge
of above 2% to 5%)
Normal-Load
Service Charge Fund
(Fund with service charge
of above 5% to 7%)
Low-Load
Service Charge Fund:
Pacific Dana Murni
Free
2.00%
3.00%
Reduced-Load
Service Charge Fund:
Pacific Income Fund
Pacific Dana KLSI
Free
Free
0.50%
Normal-Load
Service Charge Fund:
Pacific Premier Fund
Pacific Pearl Fund
Pacific Dana Aman
Pacific Millennium Fund
Pacific Recovery Fund
Pacific Progressive Fund
Free
Free
Free
Current Fund
Please refer to page 88 for more information on the terms and conditions of the switching facility.
84
FEES, CHARGES AND EXPENSES
EXPENSES
Expenses directly related to the Fund are management fee, trustee fee and other administrative expenses (e.g. commission
paid to brokers, auditor’s fee, courier and handling charges, etc). The following table reflects the breakdown and total
annual expenses incurred by the Funds for their last financial year-end respectively:
Management
Fee
Fund
Trustee Fee
Other Expenses
Total
Annual Expenses
Management
Expense Ratio
RM(‘000)
% of
NAV
RM(‘000)
% of
NAV
%
RM(‘000)
% of
NAV
RM(‘000)
% of
NAV
Pacific Premier Fund
(30 September 2003)
2,854
1.50
74
0.04
124
0.06
3,052
1.60
1.60
Pacific Pearl Fund
(31 March 2003)
3,405
1.50
110
0.05
206
0.10
3,721
1.65
1.65
Pacific Dana Aman
(31 March 2003)
2,969
1.51
158
0.08
85
0.04
3,212
1.63
1.63
879
1.51
47
0.08
70
0.12
996
1.71
1.71
Pacific Recovery Fund
(30 June 2003)
1,640
1.51
87
0.08
74
0.07
1,801
1.66
1.66
Pacific Income Fund
(30 September 2003)
2,501
1.50
167
0.10
111
0.07
2,779
1.67
1.67
336
1.50
35
0.16
57
0.25
428
1.91
1.91
Pacific Millennium Fund
(30 June 2003)
Pacific Progressive Fund
(31 December 2002)
Note: Pacific Dana Murni and Pacific Dana KLSI were launched on 25 March 2003 and their first financial year will end on
31 March 2004. Therefore, there is no data on their expenses published in this Prospectus for the Funds.
MANAGEMENT EXPENSE RATIO (MER)
MER will inform the investor of the total expenses incurred by the Fund during the year. This includes management fee,
trustee fee and expenses incurred for fund administrative services. A low MER indicates the effectiveness of the Manager
in managing the expenses of the Fund.
MER = Total expenses incurred by the Fund for the year
Average Net Asset Value of the Fund
x 100
There are fees and charges involved and investors are advised to consider the fees and charges before investing in
the Funds.
85
FEES, CHARGES AND EXPENSES
BASIC INFORMATION ON UNIT TRUST INVESTMENT TRANSACTIONS
WHAT IS THE MINIMUM INITIAL INVESTMENT?
Pacific Mutual offers you a choice of three investment plans namely, Cash Plan, Saver’s Plan and EPF Plan. These plans have
been carefully developed to cater for various types of investors with differing financial objectives. For immediate
investment, simply complete our Master Application Form (found on pages from 118 to 121 of this Prospectus) and
forward it to any Pacific Mutual office or its authorised representatives.
Cash Plan
Option I : Lump Sum Cash
Minimum investment
: RM500
Option II : Unit Trust Financing
Downpayment
: RM5,000
Unit Trust Financing*
: RM10,000
* Unit Trust Financing Scheme is available from
our approved financial institutions for up to 67%
of your investment. The minimum unit trust
financing is RM10,000 or subject to the financial
institution’s discretion. Please refer to the Unit
Trust Loan/Financing Risk Disclosure Statement on
page 121 of this Prospectus.
Saver’s Plan
EPF Plan
You may fix your own time
frame for saving, starting with
a minimum of five years. Your
initial investment must be two
times the monthly investment
amount. Monthly investment
amount must be in multiples of
RM50.
You may withdraw 20% of the
amount in excess of RM50,000
in your EPF Account 1, subject
to a minimum investment of
RM1,000.
WHAT IS THE MINIMUM ADDITIONAL INVESTMENT?
If you are already a unitholder of our Funds and wish to purchase additional units, simply fill in either our Additional
Investment Form or the relevant sections in the Master Application Form, indicating your existing unit trust account
number. The following are the minimum additional investments for the respective investment schemes:
Cash Plan
Option I : Lump Sum Cash RM100
Saver’s Plan
EPF Plan
Monthly investment amount
must be in multiples of RM50
via a standing instruction
with our appointed bank.
RM1,000 or 20% of the amount
in excess of RM50,000 in your
EPF Account 1 (withdrawal
interval is every three months).
HOW ARE UNIT PRICES CALCULATED?
Valuation Of Units
Valuation of units is based on the NAV of the Fund and is calculated at the end of each Business Day. The NAV per unit
of the Fund is determined by dividing the Fund’s assets less its liabilities by the number of units in issue. After the
offer period, the selling price or buying price of each unit is calculated based on the NAV per unit of the Fund as at the
next valuation point after the application is received by the Manager (“forward pricing”). The selling price/buying
price may be rounded to four decimal places. The Manager is entitled to retain the service charge and the rounding
adjustment, if any.
For any purchase/redemption request received or deemed to have been received by the Manager at or before 5.00 p.m.,
the selling price/buying price would be based on the NAV per unit at the end of the Business Day on which the request 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 subject to the Manager’s pricing on the next
Business Day.
86
BASIC INFORMATION ON UNIT TRUST INVESTMENT TRANSACTIONS
Manager’s Selling Price
The selling price of each unit is calculated based on the NAV per unit of the Fund as at the next valuation point after the
application is received by the Manager (“forward pricing”) plus a service charge of up to 7% of the NAV per unit.
Example:
Assuming the NAV per unit on 31 July 2003 to be RM0.476754 and with a service charge of 6.88% levied, the selling price
of a unit would be as follows:
Per Unit
RM
NAV
Service charge (6.88%)
0.476754
0.032801
(paid to Fund)
(paid to Manager)
Rounding adjustment
0.509555
0.000045
(paid to Manager)
Selling Price
0.509600
If a unitholder invested RM1,000.00 on that day, the number of units credited into his investment account would be
as follows:
Units credited
=
Investment
Selling price per unit
=
RM1,000.00
RM0.5096
=
1,962.32 units
Manager’s Buying Price
The buying price is calculated based on the NAV per unit of the Fund as at the next valuation point after a written request
to redeem is received by the Manager.
Example:
If a unitholder sold 1,000 units on 31 July 2003 and assuming the NAV per unit to be RM0.476754 on that day, his/her
redemption proceeds would be as follows:
NAV per unit
Buying price per unit
=
=
RM0.476754
RM0.4768
Redemption proceeds
=
=
=
Units redeemed x Buying price
1,000 units x RM0.4768
RM476.80
HOW AND WHERE CAN YOU PURCHASE, REDEEM AND TRANSFER YOUR INVESTMENT?
You can purchase, redeem or transfer your investment at any of our offices or authorised representatives (please refer to
pages 122 and 123 for full details). Just complete the following forms and submit the duly completed form to any Pacific
Mutual offices or our authorised representatives:
• Purchase
– Master Application Form
• Redemption – Quick Form – Redeem/Switch
• Transfer
– Transfer Form (must be completed in the presence of a witness)
– Master Application Form (to be completed by transferee, if he/she is not an existing unitholder of
Pacific Mutual)
In the case of partial redemption or transfer, the minimum balance to be maintained in your unit trust account must be
500 units or such sum as decided by the Manager and Trustee from time to time.
Redemption: If we receive your redemption request before 5.00 p.m. on a Business Day, we will repurchase the units at
the Manager’s Buying Price calculated at the end of the Business Day on which a duly completed Quick Form –
Redeem/Switch is received by the Manager. You will be paid within 10 days from the date Pacific Mutual receives the
redemption request.
87
BASIC INFORMATION ON UNIT TRUST INVESTMENT TRANSACTIONS
WILL THERE BE FLEXIBILITY FOR SWITCHING FROM ONE FUND TO ANOTHER?
You may switch from one Fund to another as often as your investment situation demands. The advantage of a switch
(compared with a redemption from your current Fund and a simultaneous purchase into a target Fund) is that the NAV
per unit is used to calculate the number of units you will be getting in the target Fund. All switches are subject to the
following three conditions:
• Minimum number of units to be switched out is 1,000;
• Minimum number of units left in an account after partial switching is 500; and
• Switching into a new Fund is done three months after the date of the inaugural Prospectus of the new Fund.
A switching fee is payable in certain cases (please refer to page 84).
Investors of Pacific Premier Fund, Pacific Pearl Fund, Pacific Dana Aman, Pacific Millennium Fund, Pacific Recovery Fund,
Pacific Income Fund, Pacific Progressive Fund, Pacific Dana Murni and Pacific Dana KLSI are not allowed to switch into
Pacific SELECT Balance Fund and Pacific SELECT Income Fund, and vice versa.
To make a switch, you simply need to complete the Quick Form - Redeem/Switch or send a letter of request to any Pacific
Mutual office or its authorised representatives.
Switching from Syariah-based Fund to a non-Syariah-based Fund is discouraged especially for Muslim unitholders.
COOLING-OFF PERIOD
If you are a first-time investor with Pacific Mutual, you are given a cooling-off period of six Business Days or any other
period permitted by the Securities Commission. Within these six Business Days from the date of receipt of the application
form by Pacific Mutual, you have the right to call for withdrawal of investment. However, this is not applicable to:
• Corporate investors/institutional investors;
• Staff of Pacific Mutual; and
• Persons Dealing In Unit Trust (PDUT) of Pacific Mutual.
The refund for every unit held by the investors pursuant to the exercise of their cooling-off right is the sum of:
• the NAV per unit on the day units were purchased; and
• service charge per unit originally imposed on the day the units were purchased.
When you exercise the cooling-off right, the money will be refunded to you:
• (For Cash Plan and Saver’s Plan) within 10 days of receipt of the notice of cooling-off by Pacific Mutual.
• (For EPF Plan) within 10 days after receipt of the disbursement of fund from EPF. The refund will be returned to your
EPF account.
DISTRIBUTIONS
Distributions declared by the Funds will be automatically reinvested into further units of the Fund except for Cash Plan
Option 1, where the investor may opt for distribution cheque. Reinvestments of distributions will be based on the
Manager’s Buying Price of the respective Funds, 21 days after the declaration of distributions.
How Is Total Return Of A Fund Calculated?
Rate of price return
=
NAV of Fund in current year
* Adjusted NAV in base year
* (after adjustment of unit splits, if any)
Rate of income return
=
Gross distribution within the period
+1
NAV on ex-distribution date
Total return
=
[(Price return x Series of income return) -1] x 100
The above formula used to calculate a Fund’s return is in line with the method adopted by Standard & Poor’s Fund Services Asia Ltd.
88
BASIC INFORMATION ON UNIT TRUST INVESTMENT TRANSACTIONS
Example:
Assuming Fund A, which was launched on 1 July 2002, declared a gross distribution of five sen and a unit split ^ of 10 for
every 100 units held on 30 June 2003. Total return since inception would be calculated as follows:
1.
2.
3.
*
^
Price return
Unit split
1 July 2002 NAV (RM)
30 June 2003 NAV* (RM)
Price return
Income return
Gross distribution (RM)
NAV* (RM)
Income return
Total return
(since inception)
=
=
=
=
=
10 : 100
0.4750
0.4864
0.4864 / (0.4750 / 1.10)
1.1264
=
=
=
=
0.05
0.4864
(0.05 / 0.4864) + 1
1.1028
=
=
[(1.1264 x 1.1028) –1] x 100
24.22%
Ex-distribution
A unit split is not a form of distribution.
Distributable Income
Distribution is made out of a Fund’s distributable income. Distributable income comprises realised gains, dividend income,
interest income, distribution equalisation and accretion of discounts on unquoted corporate bonds.
Impact Of Distribution On A Fund’s Unit Prices
Generally, when distributions are made out of a Fund’s income, the NAV of the Fund will decrease by a similar amount.
Example:
If a Fund declared a gross distribution of three sen per unit on 30 June 2003, the effect of the distribution on the NAV
and unit prices of the Fund would be adjusted as follows, assuming the Fund charges a service charge of 5% of the NAV
per unit:
Gross distribution per unit:
Net distribution per unit:
3.0000 sen
2.6120 sen
Before Distribution
After Distribution
NAV (RM)
0.5395
0.5134
Buying price (RM)
0.5395
0.5134
Selling price (RM)
0.5665
0.5391
89
BASIC INFORMATION ON UNIT TRUST INVESTMENT TRANSACTIONS
GETTING TO KNOW HOW YOUR FUNDS WORK
HOW DOES THE INVESTMENT PROCESS WORK?
At Pacific Mutual, we are relentless in fulfilling our role as an Active Information Processor which demands of us to
constantly stay alert to profitable opportunities.
A highly disciplined investment process is also adopted to ensure the active involvement of the Investment Committee and
Management Teams, all working together to achieve our Funds’ investment objectives.
INVESTMENT PROCESS
Performance Measurement
Fund Objectives &
Constraints
- Equities research
- Quantitative research
(risk analysis)
- Economic research
Active
Allocation
Strategy
Pacific Mutual Investment
Policy & Guidelines
Asset
Allocation
Relevant Local & Global
Macro Economic
Considerations
- Interest rate forecast
- Exchange rate
- GDP growth
Capital Market
Expectations
Portfolio Rebalancing
Investment Committee Review
90
GETTING TO KNOW HOW YOUR FUNDS WORK
Fixed Income &
Equity Fund
Portfolio
- through centralised
dealing/execution
YOUR RIGHTS AS A UNITHOLDER
Your units in a Fund give you an equal interest in the Fund as a whole. Under the Deed, each unitholder has a claim
proportionate to his/her investment on the assets upon termination of the Fund. In a distribution of income, if any, the
Manager will recognise unitholders who are registered as at the last day of the distribution period. We describe below
some of your more important entitlements as a unitholder.
WHAT ARE MY LIABILITIES AS A UNITHOLDER?
You are not expected to be under any personal obligation to indemnify the Trustee or Manager or any creditor of the
Fund if there was a deficiency of the assets of the Fund. Unitholders’ liabilities are limited only to the purchase price of
their units (at the time of purchase) plus any charges payable in relation to the purchase of the units.
The Trustee or the Manager may be indemnified by the Fund for their liabilities arising out of the Fund and the Deed. The
Deed limits the amount of indemnity to the value of the assets of the Fund.
WHERE CAN I INSPECT THE REGISTER OF UNITHOLDERS?
The Register of Unitholders is kept at our business office at 1001, Level 10, Uptown 1, No. 1 Jalan SS21/58, Damansara
Uptown, 47400 Petaling Jaya, Selangor Darul Ehsan. You are invited to inspect the register at any time during office hours:
Monday to Friday (9.00 a.m. to 6.00 p.m.).
WHAT ARE MY RIGHTS AS A UNITHOLDER?
You have the right, amongst others, to the following:
• To receive any distribution of income of the Fund, to participate in any increase in capital value of the units and to all
rights and privileges under the Fund’s Deed.
• To exercise the cooling-off right (please refer to page 88).
• To receive annual and interim reports.
• To call for a unitholders’ meeting (as set out below) and to vote for the removal of the Trustee or the Manager through
an extraordinary resolution.
You are entitled to attend meetings which may be convened at any time by Pacific Mutual or the Trustee in accordance
with the provisions of the Deed. Meetings of unitholders may be called in certain circumstances, including to approve
certain amendments to the Deed or to wind up the Fund. The Manager or the Trustee may call a meeting of unitholders
but unitholders themselves can request the Trustee to call a meeting. Generally, the required number of unitholders to do
this is:
• At least 50 unitholders; or
• Unitholders who hold at least one-tenth of the total number of units in the Fund.
WHERE CAN I REFER FOR UPDATES ON MY INVESTMENT?
You can have immediate access to the daily unit pricing and NAV of the Funds which are published in the major daily
newspapers, our Infoline 019-200 1577/1578, our website www.pacificmutual.com.my, or contact any of our Customer Care
personnel at 03-7725 9877 or e-mail customercare@pacificmutual.com.my, who will be most glad to attend to any of your
queries.
While it is the duty of the Manager to ensure the Funds are being correctly valued or priced, the Manager, however,
cannot be held liable for any error in prices published in the press, Pacific Mutual’s website and the websites of our
distributors.
In addition, you can also constantly keep abreast of the respective Funds’ developments via their interim and annual
reports. The interim and annual reports comprise the following information:
• Stock market review and outlook as well as investment strategy.
• Funds’ performance review and data.
• Funds’ portfolio structure.
• Funds’ size and breakdown of unitholdings.
Our Funds’ performance and other information will also be featured in our website www.pacificmutual.com.my.
IS THERE A VALIDITY PERIOD FOR DISTRIBUTION WARRANT?
You are advised to present your distribution warrant for payment within six months of its issuance. All unclaimed
distributions will be automatically reinvested into additional units at the expiry of the distribution warrant based on the
Manager’s Buying Price on the said expiry date.
91
YOUR RIGHTS AS A UNITHOLDER
TAXATION ADVISER’S LETTER IN RESPECT OF THE
TAXATION OF THE UNIT TRUST AND UNITHOLDERS
(PREPARED FOR INCLUSION IN THIS PROSPECTUS)
30 September 2003
Ernst & Young Tax Consultants Sdn Bhd
Level 23A, Menara Milenium
Pusat Bandar Damansara
50490 Kuala Lumpur
The Board of Directors
Pacific Mutual Fund Bhd
1001, Level 10, Uptown 1
No. 1 Jalan SS21/58
Damansara Uptown
47400 Petaling Jaya
Selangor Darul Ehsan
Dear Sirs
TAXATION OF THE UNIT TRUST AND UNITHOLDERS
This letter has been prepared for inclusion in this Master Prospectus to be dated 15 November 2003, in connection with
the offer of units in the unit trusts known as Pacific Premier Fund, Pacific Pearl Fund, Pacific Dana Aman, Pacific
Millennium Fund, Pacific Recovery Fund, Pacific Income Fund, Pacific Progressive Fund, Pacific Dana Murni and Pacific Dana
KLSI (hereinafter referred to as “the Funds”).
TAXATION OF UNIT TRUST
The Funds will be treated as a trust body for Malaysian tax purposes. The taxation of the Funds is governed principally by
Sections 61 and 63B of the Malaysian Income Tax Act, 1967 (“MITA”). In addition, the activities of the Funds are governed
by the Securities Commission Act 1993 and the guidelines and regulations set by the Securities Commission on Unit Trusts.
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, interest 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 28%.
Tax allowable expenses would comprise expenses falling under Section 33(1) and Section 63B of the MITA. Section 33(1)
generally provides for a deduction of expenses “wholly and exclusively incurred” in the production of gross income. In
addition, Section 63B allows unit trusts to deduct a portion of other expenses not directly related to the production of
income as explained below.
Expenses in respect of the Manager’s remuneration, maintenance of the register of unitholders, share registration
expenses, secretarial, audit and accounting fees, telephone charges, printing and stationery costs and postage (“permitted
expenses”) which are incurred by the Funds but are not deductible under Section 33(1) of the MITA, are given a partial
deduction under Section 63B of the Act, which is computed as follows:
A
X
B
4C
where
A
is the total of the permitted expenses incurred for that basis period;
B
is gross income consisting of dividends, interest and rent chargeable to tax for that basis period; and
C
is the aggregate of the gross income consisting of dividends (whether exempt or not), interest and rent, and gains
made from the realisation of investments (whether chargeable to tax or not) for that basis period.
provided that the amount of deduction to be made shall not be less than 10% of the total permitted expenses incurred
for that basis period.
92
TAXATION ADVISER’S LETTER
Exempt Income
The Funds may also receive Malaysian dividends and interest 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 relevant legislation as well as from distributions from exempt income accounts.
Investment income of the unit trusts derived from the following sources are also exempt from taxation:
•
interest from securities or bonds issued or guaranteed by the Government of Malaysia;
•
interest from debentures (other than convertible loan stock) approved by the Securities Commission;
•
interest from Bon Simpanan Malaysia issued by Bank Negara Malaysia;
•
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;
•
interest received from bonds or securities issued by Pengurusan Danaharta Nasional Berhad; and
•
interest derived from bonds (other than convertible loan stock) paid or credited by any company listed on the
Malaysian Exchange of Securities Dealing and Automated Quotation Berhad (MESDAQ).
Foreign Income
The Funds may receive dividends, interest and other income from investments outside Malaysia. Pursuant to the Income
Tax (Exemption) (No. 48) Order 1997, 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 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.
However, the recently gazetted Real Property Gains Tax (Exemption) (No. 2) Order 2003 exempts any person from the
payment of real property gains tax in respect of chargeable gains accruing on the disposal of any chargeable asset from
1 June 2003 until 31 May 2004.
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 of the Funds, the excess is
refundable to the Funds.
TAXATION OF UNITHOLDERS
For Malaysian income tax purposes, unitholders will be assessed separately on their share of the distributions received
from the Funds.
The income of unitholders from the investment broadly falls under the following categories:
1.
taxable distributions;
2.
non-taxable and exempt distributions; and
3.
gains from sale of units.
The tax implications of each of the above categories are explained below.
93
TAXATION ADVISER’S LETTER
Taxable Distribution
The amount distributed from the Funds will be grossed up to take into account the underlying tax of the Funds. The
unitholders will be taxed on the gross income received from the Funds after deducting the allowable expenses. Taxable
distributions carry a tax credit as specified under Section 110(9A) of the MITA, that is, the tax chargeable on the Funds and
attributable to the income distributed to the unitholders will be available for set-off against the tax chargeable on the
unitholders.
The Malaysian tax chargeable depends on the tax residence status of the unitholders and the type of unitholders, that is,
whether they are individuals, corporations, non-corporations or trust bodies. The tax rates charged are as follows:
Unitholders
Malaysian Tax Rates
Malaysian tax resident:
• Individual and non-corporate unitholders
• Progressive tax rates ranging from 0% to 28%
(such as co-operatives, associations and societies)
• Corporate unitholders
• 28%
Non-Malaysian tax resident:
• Individual and non-corporate unitholders
• 28%
• Corporate unitholders
• 28%
With effect from the year of assessment 2003, corporate unitholders with paid-up capital of RM2.5 million and less (at the
beginning of the basis period for the year of assessment) will be subject to a tax rate of 20% on chargeable income of up
to RM100,000. For chargeable income in excess of RM100,000, corporate tax at the rate of 28% is still applicable to such
corporate unitholders.
There is no withholding tax in Malaysia on the distribution of income from the Funds to non-resident unitholders. Nonresident unitholders 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. In addition, the Malaysian tax
paid by the Funds and attributable to the income distributed to the unitholders may be available as a tax credit in the
foreign tax jurisdictions.
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 unitholders.
Unit Splits
New units issued by the Funds pursuant to a unit split will not be subject to tax in the hands of the unitholders.
Gains From Sale Of Units
Gains arising from the realisation of investments will not be taxable on the unitholders other than insurance companies,
financial institutions or traders/dealers in securities.
94
TAXATION ADVISER’S LETTER
Reinvestment Of Distributions
Unitholders may choose to reinvest their income distribution in new units by informing the Manager. In this event, the
unitholders 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 the 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
Bhupinder Singh
Executive Director
Ernst & Young Tax Consultants Sdn Bhd has given their consent to the inclusion of their letter as Tax Adviser 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.
95
TAXATION ADVISER’S LETTER
FINANCIAL INFORMATION OF THE COMPANY
4 November 2003
The Board of Directors
Pacific Mutual Fund Bhd
1001, Level 10, Uptown 1
No. 1, Jalan SS21/58
Damansara Uptown
47400 Petaling Jaya
Selangor Darul Ehsan
Ladies/Gentlemen,
I.
INTRODUCTION
The following report has been prepared solely for inclusion in the Master Prospectus to be dated 15 November 2003
issued by Pacific Mutual Fund Bhd (“the Manager” or “the Company”) in connection with the offer of units in Pacific
Premier Fund, Pacific Pearl Fund, Pacific Dana Aman, Pacific Millennium Fund, Pacific Recovery Fund, Pacific Income
Fund, Pacific Progressive Fund, Pacific Dana Murni and Pacific Dana KLSI (“the Funds”).
This report is furnished solely for inclusion in this Master Prospectus and is not to be referred to in any documents or
used for any other purposes.
II.
THE FUNDS
Pacific Premier Fund, Pacific Pearl Fund and Pacific Dana Aman were each established under a Deed dated 28 July 1995
(amended by First Supplemental Deed dated 31 January 1996 and Second Supplemental Deed dated 20 January 1998),
18 December 1996 (amended by First Supplemental Deed dated 11 December 1998, Second Supplemental Deed dated
29 June 2000 and Third Supplemental Deed dated 16 May 2001) and 15 April 1998 (amended by First Supplemental
Deed dated 3 December 1999, Second Supplemental Deed dated 29 June 2000 and Third Supplemental Deed dated
11 September 2002) respectively. Pacific Millennium Fund, Pacific Recovery Fund, Pacific Income Fund and Pacific
Progressive Fund (collectively known as PMF Opportunity Trusts) were established under a common Deed dated
14 April 1999 (amended by Supplemental Deeds dated 13 June 2000, 7 August 2000 and 18 December 2000). Pacific
Dana Murni and Pacific Dana KLSI were established under a common Deed dated 17 March 2003.
III. INFORMATION ON FUNDS MANAGED BY THE MANAGER
1.
Details of distributions and unit splits together with the buying and selling prices preceding the date of this report
are as follows:
Date Of Distribution/
Unit Split
Gross
Distribution
Per Unit
Net Asset Value
Unit
Split
Before
Declaration
After
Declaration
Buying
Price Per
Unit *
Selling
Price Per
Unit *
RM
RM
RM
RM
Pacific Premier Fund
(initial issue price at RM1.00)
16 May 1996
–
6 : 100
1.08
1.02
1.07
1.12
7 August 1996
6.0 sen
4 : 100
1.02
0.93
0.98
1.03
31 March 1997
6.0 sen
–
1.03
0.97
1.01
1.06
30 September 1997
4.0 sen
–
0.73
0.70
0.70
0.75
30 September 1998
–
10 : 100
0.46
0.42
0.42
0.45
30 September 1999
3.0 sen
6 : 100
0.62
0.56
0.56
0.60
30 September 2000
8.0 sen
–
0.67
0.60
0.60
0.65
30 September 2001
–
8 : 100
0.53
0.50
0.50
0.54
30 September 2003
–
6 : 100
0.6519#
0.6150#
0.6150#
0.6573#
96
FINANCIAL INFORMATION OF THE COMPANY
Date Of Distribution/
Unit Split
Pacific Pearl Fund
(initial issue price at RM1.00)
31 January 1998
31 January 1999
31 January 2000
31 March 2001
31 March 2002
31 March 2003
Gross
Distribution
Per Unit
:
:
:
:
:
:
After
Declaration
Buying
Price Per
Unit *
Selling
Price Per
Unit *
RM
RM
RM
RM
0.54
0.61
0.86
0.60
0.70
0.5659#
0.49
0.55
0.78
0.55
0.64
0.5389#
0.49
0.55
0.78
0.55
0.64
0.5389#
0.52
0.59
0.83
0.59
0.68
0.5760#
sen
sen
sen
sen
sen
sen
sen
sen
–
–
–
–
7 : 100
–
–
–
0.58
0.64
0.62
0.82
0.54
0.48
0.54
0.4526#
0.55
0.59
0.57
0.72
0.47
0.45
0.49
0.4134#
0.55
0.59
0.57
0.72
0.47
0.45
0.49
0.4134#
0.59
0.63
0.61
0.77
0.50
0.48
0.53
0.4419#
Pacific Millennium Fund
(initial issue price at RM0.50)
30 April 2000
30 June 2002
30 June 2003
7.5 sen
–
3.0 sen
–
10:100
–
0.65
0.57
0.4952#
0.58
0.52
0.4665#
0.58
0.52
0.4665#
0.63
0.56
0.4986#
Pacific Recovery Fund
(initial issue price at RM0.50)
30 April 2000
30 June 2002
30 June 2003
5.0 sen
–
5.0 sen
10:100
10:100
–
0.74
0.61
0.5219#
0.62
0.56
0.4733#
0.62
0.56
0.4733#
0.67
0.60
0.5059#
Pacific Income Fund
(initial issue price at RM0.50)
30 September 2001
30 September 2002
30 September 2003
2.5 sen
3.0 sen
3.0 sen
–
–
–
0.48
0.5040#
0.5170#
0.46
0.4744#
0.4881#
0.46
0.4744#
0.4881#
0.49
0.4982#
0.5125#
Pacific Progressive Fund
(initial issue price at RM0.50)
31 December 2001
–
8 : 100
0.55
0.52
0.52
0.56
3.5
5.0
5.0
10.0
4.0
4.0
5.0
4.0
10
10
6
10
10
5
Before
Declaration
100
100
100
100
100
100
Pacific Dana Aman
(initial issue price at RM0.50)
30 November 1998
31 May 1999
31 October 1999
31 May 2000
31 March 2001
30 September 2001
31 May 2002
31 March 2003
–
–
4.0 sen
–
–
–
Net Asset Value
Unit
Split
Pacific Dana Murni, Pacific Dana KLSI, Pacific SELECT Balance Fund and Pacific SELECT Income Fund
Pacific Dana Murni and Pacific Dana KLSI were launched on 25 March 2003, both with initial issue price at RM0.50.
Pacific SELECT Balance Fund and Pacific SELECT Income Fund were launched on 11 August 2003, both with initial issue
price at RM0.50. There has been no distribution for these stated Funds at the date of this Prospectus.
* Ex-distribution prices
# With effect from 29 July 2002, the prices are quoted at four decimal places.
97
FINANCIAL INFORMATION OF THE COMPANY
2.
The quoted buying and selling prices of the units in Pacific Premier Fund, Pacific Pearl Fund, Pacific Dana Aman, Pacific
Millennium Fund, Pacific Recovery Fund, Pacific Income Fund, Pacific Progressive Fund, Pacific Dana Murni, Pacific
Dana KLSI, Pacific SELECT Balance Fund and Pacific SELECT Income Fund on 3 November 2003 being the last practical
date prior to the date of this report were as follows:
Pacific
Pacific
Pacific
Pacific
Pacific
Pacific
Pacific
Pacific
Pacific
Pacific
Pacific
3.
Premier Fund
Pearl Fund
Dana Aman
Millennium Fund
Recovery Fund
Income Fund
Progressive Fund
Dana Murni
Dana KLSI
SELECT Balance Fund
SELECT Income Fund
Buying Price
Per Unit
RM
Selling Price
Per Unit
RM
0.6787
0.7371
0.5341
0.5615
0.5642
0.5088
0.5449
0.4943
0.5660
0.5133
0.5047
0.7254
0.7878
0.5709
0.6002
0.6030
0.5342
0.5824
0.5042
0.5943
0.5390
0.5148
The Statement of Income and Expenditure and Statement of Assets and Liabilities of the Funds mentioned above
based on their audited financial statements for the past five financial years/periods since their incorporation are set
out as follows:
PACIFIC PREMIER FUND
Statement Of Income And Expenditure
1.10.2002
to
30.9.2003
(RM’000)
1.10.2001
to
30.9.2002
(RM’000)
1.10.2000
to
30.9.2001
(RM’000)
1.10.1999
to
30.9.2000
(RM’000)
1.10.1998
to
30.9.1999
(RM’000)
4,504
1,832
351
(20,192)
3,718
2,396
431
(12,875)
5,195
2,481
562
(5,025)
4,393
3,739
263
31,752
3,093
3,934
–
12,903
(13,505)
(6,330)
3,213
40,147
19,930
5
2,854
74
231
119
5
3,167
76
62
120
5
2,829
74
40
162
5
3,744
80
–
186
6
2,752
86
–
148
3,283
3,430
3,110
4,015
2,992
Net (Loss)/Income Before Taxation
Taxation
(16,788)
(807)
(9,760)
(616)
103
(1,081)
36,132
(685)
16,938
(699)
Net (Loss)/Income After Taxation
Distribution Equalisation
(17,595)
(45)
(10,376)
(1,197)
(978)
996
35,447
(2,605)
16,239
306
Undistributed Net Income Brought Forward
(17,640)
5,293
(11,573)
16,866
18
16,848
32,842
8,726
16,545
583
Distribution For The Year
(12,347)
–
5,293
–
16,866
–
41,568
(24,720)
17,128
(8,402)
(Loss)/Undistributed Net Income Carried Forward
(12,347)
5,293
16,866
16,848
8,726
INVESTMENT INCOME
Gross dividends
Interest income
Accretion of discounts on bonds
(Loss)/Profit on sale of quoted investments
EXPENSES
Audit fees
Manager’s fees
Trustee’s fees
Amortisation of premium on bonds
Administration expenses
98
FINANCIAL INFORMATION OF THE COMPANY
Statement Of Asset And Liabilities
30.9.2003
(RM’000)
30.9.2002
(RM’000)
As at
30.9.2001
(RM’000)
30.9.2000
(RM’000)
30.9.1999
(RM’000)
ASSETS
Quoted equity securities
Foreign equity securities
Derivative instruments
Loan stocks
Unquoted corporate bonds
Other debt securities
Liquid assets
Other assets
146,786
–
4,840
–
24,513
–
26,517
6,987
142,531
–
205
910
21,257
–
23,766
4,560
124,949
–
376
895
12,748
–
45,609
1,249
138,805
750
4,785
–
28,179
–
47,462
808
145,521
–
2,843
–
21,229
1,889
36,417
1,551
Total Assets
209,643
193,229
185,826
220,789
209,450
LIABILITIES
Creditors and accruals
Distribution payable
5,039
–
1,391
–
2,036
–
1,549
24,720
2,343
8,401
Total Liabilities
5,039
1,391
2,036
26,269
10,744
NET ASSET VALUE
204,604
191,838
183,790
194,520
198,706
UNITHOLDERS’ FUNDS
204,604
191,838
183,790
194,520
198,706
NET ASSET VALUE PER UNIT (RM)
0.6150#
0.5710#
0.50
0.60
0.56
# With effect from 29 July 2002, the Net Asset Value per unit is quoted at four decimal places.
99
FINANCIAL INFORMATION OF THE COMPANY
PACIFIC PEARL FUND
Statement Of Income And Expenditure
1.2.2000
to
31.3.2001
(RM’000)
1.2.1999
to
31.1.2000
(RM’000)
1.2.1998
to
31.1.1999
(RM’000)
5,339
2,820
549
(6,561)
4,793
3,733
592
26,293
3,534
2,703
569
20,732
2,876
5,458
–
(15,973)
(9,332)
2,147
35,411
27,538
(7,639)
5
3,405
185
89
126
5
3,207
185
101
130
5
4,283
214
25
172
5
3,084
185
–
162
6
2,099
126
–
122
3,810
3,628
4,699
3,436
2,353
Net (Loss)/Income Before Taxation
Taxation
(13,142)
(765)
(1,481)
(1,006)
30,712
(743)
24,102
(580)
(9,992)
(665)
Net (Loss)/Income After Taxation
Distribution Equalisation
(13,907)
(2,899)
(2,487)
(935)
29,969
(750)
23,522
(208)
(10,657)
128
Undistributed Net Income/(Loss) Brought Forward
(16,806)
34,511
(3,422)
37,933
29,219
8,713
23,314
(3,925)
(10,529)
6,604
Distribution For The Year
17,705
–
34,511
–
37,932
–
19,389
(10,676)
(3,925)
–
Undistributed Net Income/(Loss) Carried Forward
17,705
34,511
37,932
8,713
(3,925)
INVESTMENT INCOME
Gross dividends
Interest income
Accretion of discounts on bonds
(Loss)/Profit on sale of quoted investments
EXPENSES
Audit fee
Manager’s fee
Trustee’s fee
Amortisation of premium on bonds
Administration expenses
100
1.4.2002
to
31.3.2003
(RM’000)
1.4.2001
to
31.3.2002
(RM’000)
4,687
2,592
212
(16,823)
FINANCIAL INFORMATION OF THE COMPANY
Statement Of Asset And Liabilities
31.3.2003
(RM’000)
31.3.2002
(RM’000)
As At
31.3.2001
(RM’000)
31.1.2000
(RM’000)
31.1.1999
(RM’000)
ASSETS
Quoted equity securities
Derivative instruments
Loan stocks
Unquoted corporate bonds
Liquid assets
Other assets
145,315
257
869
16,004
28,988
10,719
117,372
18
432
19,879
101,852
4,452
107,505
872
560
24,949
60,865
1,411
203,537
2,699
448
23,024
42,447
2,812
104,223
–
–
8,000
52,890
12,948
Total Assets
202,152
244,005
196,162
274,967
178,061
LIABILITIES
Creditors and accruals
Distribution payable
1,319
–
567
–
747
–
4,983
10,676
4,498
–
Total Liabilities
1,319
567
747
15,659
4,498
NET ASSET VALUE
200,833
243,438
195,415
259,308
173,563
UNITHOLDERS’ FUNDS
200,833
243,438
195,415
259,308
173,563
NET ASSET VALUE PER UNIT (RM)
0.5389#
0.64
0.55
0.78
0.55
# With effect from 29 July 2002, the Net Asset Value per unit is quoted at four decimal places.
101
FINANCIAL INFORMATION OF THE COMPANY
PACIFIC DANA AMAN
Statement Of Income And Expenditure
INVESTMENT INCOME
Gross dividends
Profit from Islamic money market instrument
Accretion of discounts on
unquoted Islamic debt securities
(Loss)/Profit on sale of quoted investments
EXPENSES
Audit fee
Manager’s fee
Trustee’s fee
Amortisation of premium on
unquoted Islamic debt securities
Administration expenses
Net Income Before Taxation
Taxation
1.4.2002
to
31.3.2003
(RM’000)
1.4.2001
to
31.3.2002
(RM’000)
3,484
3,189
19
1,424
1,325
15
422
674
63
267
309
–
65
425
–
846
109
9,292
2,774
5,951
3,610
1,268
9,868
3,264
5
2,969
158
199
5
1,171
62
77
3
583
31
3
3
390
21
–
3
145
8
–
80
66
56
49
27
3,411
1,381
676
463
183
2,540
(523)
2,229
(210)
592
(32)
9,405
(27)
3,081
(11)
(741)
1.6.2000
to
31.3.2001
(RM’000)
1.6.1999
to
31.5.2000
(RM’000)
16.4.1998
to
31.5.1999
(RM’000)
Net Income After Taxation
Distribution Equalisation
2,017
20,433
2,019
10,970
560
7,033
9,378
5,124
3,070
879
Undistributed Net Income Brought Forward
22,450
19,889
12,989
12,983
7,593
9,207
14,502
1,999
3,949
–
42,339
(34,090)
25,972
(6,083)
16,800
(3,817)
16,501
(7,294)
3,949
(1,950)
8,249
19,889
12,983
9,207
1,999
Distribution For The Year
Undistributed Net Income Carried Forward
102
FINANCIAL INFORMATION OF THE COMPANY
Statement Of Asset And Liabilities
31.3.2003
(RM’000)
As at
31.3.2002 31.3.2001 31.5.2000 31.5.1999
(RM’000) (RM’000) (RM’000) (RM’000)
ASSETS
Quoted equity securities
Derivative instruments
Unquoted Islamic debt securities
Liquid assets
Other assets
145,766
3,832
32,364
41,694
11,607
53,284
112
9,424
45,894
2,607
22,983
161
10,425
16,703
857
20,874
486
–
19,821
6,706
6,066
–
–
9,331
1,685
Total Assets
235,263
111,321
51,129
47,887
17,082
LIABILITIES
Creditors and accruals
Distribution payable
210
20,339
869
–
72
3,817
3,100
5,497
695
1,286
Total Liabilities
20,549
869
3,889
8,597
1,981
NET ASSET VALUE
214,714
110,452
47,240
39,290
15,101
UNITHOLDERS’ FUNDS
214,714
110,452
47,240
39,290
15,101
NET ASSET VALUE PER UNIT (RM)
0.4134#
0.53
0.47
0.72
0.59
# With effect from 29 July 2002, the Net Asset Value per unit is quoted at four decimal places.
103
FINANCIAL INFORMATION OF THE COMPANY
PACIFIC MILLENNIUM FUND
Statement Of Income And Expenditure
1.7.2002
to
30.6.2003
(RM’000)
INVESTMENT INCOME
Gross dividends
Interest income
Accretion of discounts on bonds
(Loss)/Profit on sale of quoted investments
EXPENSES
Audit fee
Manager’s fee
Trustee’s fee
Amortisation of premium on bonds
Administration expenses
Net (Loss)/Income Before Taxation
Taxation
Net (Loss)/Income After Taxation
Distribution Equalisation
Undistributed Net Income Brought Forward
Distribution For The Year
Undistributed Net Income Carried Forward
104
1.7.2001
to
30.6.2002
(RM’000)
1,053
415
61
(1,463)
750
653
146
(719)
1.5.2000
to
30.6.2001
(RM’000)
15.4.1999
to
30.4.2000
(RM’000)
871
817
82
314
526
392
–
7,369
66
830
2,084
8,287
5
879
47
4
65
5
802
43
1
59
5
818
44
13
71
5
483
26
8
32
1,000
910
951
554
(934)
(182)
(80)
(123)
1,133
(140)
7,733
(90)
(1,116)
502
(203)
60
993
1,536
7,643
2,049
(614)
6,207
(143)
6,350
2,529
3,821
9,692
–
5,593
(3,572)
6,207
–
6,350
–
9,692
(5,871)
2,021
6,207
6,350
3,821
FINANCIAL INFORMATION OF THE COMPANY
Statement Of Asset And Liabilities
30.6.2003
(RM’000)
As at
30.6.2002
30.6.2001
(RM’000)
(RM’000)
30.4.2000
(RM’000)
ASSETS
Quoted equity securities
Derivative instruments
Unquoted corporate bonds
Liquid assets
Other assets
44,673
–
2,954
14,030
659
35,031
–
1,853
22,896
2,659
25,284
6
3,131
16,453
211
34,279
235
2,092
11,337
4,183
Total Assets
62,316
62,439
45,085
52,126
LIABILITIES
Creditors and accruals
Distribution payable
527
3,572
2,243
–
11
–
485
5,870
Total Liabilities
4,099
2,243
11
6,355
NET ASSET VALUE
58,217
60,196
45,074
45,771
UNITHOLDERS’ FUNDS
58,217
60,196
45,074
45,771
NET ASSET VALUE PER UNIT (RM)
0.4665#
0.52
0.43
0.58
# With effect from 29 July 2002, the Net Asset Value per unit is quoted at four decimal places
105
FINANCIAL INFORMATION OF THE COMPANY
PACIFIC RECOVERY FUND
Statement Of Income And Expenditure
1.7.2002
to
30.6.2003
(RM’000)
1.7.2001
to
30.6.2002
(RM’000)
2,088
594
46
(4,108)
1,529
1,076
144
3,652
1,202
1,262
171
1,008
268
434
–
9,508
(1,380)
6,401
3,643
10,210
5
1,640
87
2
69
5
1,411
75
–
62
5
1,274
68
5
73
5
494
26
7
34
1,803
1,553
1,425
566
Net (Loss)/Income Before Taxation
Taxation
(3,183)
(372)
4,848
(283)
2,218
(140)
9,644
(45)
Net (Loss)/Income After Taxation
Distribution Equalisation
(3,555)
6,686
4,565
1,195
2,078
6,979
9,599
3,952
Undistributed Net Income Brought Forward
3,131
23,968
5,760
18,208
9,057
9,151
13,551
–
27,099
(12,067)
23,968
–
18,208
–
13,551
(4,400)
15,032
23,968
18,208
9,151
INVESTMENT INCOME
Gross dividends
Interest income
Accretion of discounts on bonds
(Loss)/Profit on sale of quoted investments
EXPENSES
Audit fee
Manager’s fee
Trustee’s fee
Amortisation of premium on bonds
Administration expenses
Distribution For The Year
Undistributed Net Income Carried Forward
106
FINANCIAL INFORMATION OF THE COMPANY
1.5.2000
to
30.6.2001
(RM’000)
15.4.1999
to
30.4.2000
(RM’000)
Statement Of Asset And Liabilities
30.6.2003
(RM’000)
ASSETS
Quoted equity securities
Derivative instruments
Unquoted corporate bonds
Liquid assets
Other assets
As at
30.6.2002
30.6.2001
(RM’000)
(RM’000)
30.4.2000
(RM’000)
76,361
2,180
2,448
41,448
7,459
63,342
373
981
46,191
466
44,478
120
2,761
28,784
382
32,077
940
1,054
21,007
10,589
129,896
111,353
76,525
65,667
LIABILITIES
Creditors and accruals
Distribution payable
119
12,067
5,047
–
15
–
1,135
4,400
Total Liabilities
12,186
5,047
15
5,535
NET ASSET VALUE
117,710
106,306
76,510
60,132
UNITHOLDERS’ FUNDS
117,710
106,306
76,510
60,132
0.55
0.46
0.62
Total Assets
NET ASSET VALUE PER UNIT (RM)
0.4733#
# With effect from 29 July 2002, the Net Asset Value per unit is quoted at four decimal places
107
FINANCIAL INFORMATION OF THE COMPANY
PACIFIC INCOME FUND
Statement Of Income And Expenditure
1.10.2002
to
30.9.2003
(RM’000)
1.10.2001
to
30.9.2002
(RM’000)
18.8.2000
to
30.9.2001
(RM’000)
2,412
4,707
1,049
5,775
953
3,145
1,382
4,661
597
2,076
1,271
1,961
13,943
10,141
5,905
5
2,501
167
314
106
5
1,730
111
105
92
3
1,171
78
47
50
3,093
2,043
1,349
Net Income Before Taxation
Taxation
10,850
(472)
8,098
(161)
4,556
(83)
Net Income After Taxation
Distribution Equalisation
10,378
(261)
7,937
2,852
4,473
576
Undistributed Net Income Brought Forward
10,117
2,876
10,789
632
5,049
–
Distribution For The Year
12,993
(9,349)
11,421
(8,545)
5,049
(4,417)
3,644
2,876
INVESTMENT INCOME
Gross dividends
Interest income
Accretion of discounts on bonds
Profit on sale of quoted investments
EXPENSES
Audit fee
Manager’s fee
Trustee’s fee
Amortisation of premium on bonds
Administration expenses
Undistributed Net Income Carried Forward
108
FINANCIAL INFORMATION OF THE COMPANY
632
Statement Of Assets And Liabilities
As At
30.9.2002
(RM’000)
30.9.2001
(RM’000)
63,319
–
90,145
10,825
3,918
45,065
1,170
70,560
25,279
4,387
22,586
–
30,578
33,131
1,197
168,207
146,461
87,492
726
9,349
770
8,545
546
4,417
10,075
9,315
4,963
NET ASSET VALUE
158,132
137,146
82,529
UNITHOLDERS’ FUNDS
158,132
137,146
82,529
NET ASSET VALUE PER UNIT (RM)
0.4881#
0.4744#
0.46
30.9.2003
(RM’000)
ASSETS
Quoted equity securities
Derivative instruments
Unquoted corporate bonds
Liquid assets
Other assets
Total Assets
LIABILITIES
Creditors and accruals
Distribution payable
Total Liabilities
# With effect from 29 July 2002, the Net Asset Value per unit is quoted at four decimal places
109
FINANCIAL INFORMATION OF THE COMPANY
PACIFIC PROGRESSIVE FUND
Statement Of Income And Expenditure
1.1.2002
2.1.2001
to
to
31.12.2002 31.12.2001
(RM’000)
(RM’000)
INVESTMENT INCOME
Gross dividends
Interest income
Profit on sale of quoted investments
110
313
1,088
27
211
187
1,511
425
5
336
35
52
3
148
35
23
428
209
Net Income Before Taxation
Taxation
1,083
(3)
216
–
Net Income After Taxation
Distribution Equalisation
1,080
699
216
69
Undistributed Net Income Brought Forward
1,779
285
285
–
Undistributed Net Income Carried Forward
2,064
285
EXPENSES
Audit fee
Manager’s fee
Trustee’s fee
Administration expenses
110
FINANCIAL INFORMATION OF THE COMPANY
Statement Of Assets And Liabilities
As At
31.12.2002 31.12.2001
(RM’000)
(RM’000)
ASSETS
Quoted equity securities
Derivative instruments
Liquid assets
Other assets
13,912
–
8,128
545
11,113
–
3,493
1,334
Total Assets
22,585
15,940
LIABILITIES
Creditors and accruals
105
81
Total Liabilities
105
81
NET ASSET VALUE
22,480
15,859
UNITHOLDERS’ FUNDS
22,480
15,859
NET ASSET VALUE PER UNIT (RM)
0.4655#
0.52
# With effect from 29 July 2002, the Net Asset Value per unit is quoted at four decimal places.
111
FINANCIAL INFORMATION OF THE COMPANY
PACIFIC DANA MURNI, PACIFIC DANA KLSI, PACIFIC SELECT BALANCE FUND AND PACIFIC SELECT INCOME FUND
Pacific Dana Murni and Pacific Dana KLSI were launched on 25 March 2003 and their first financial year-end will
be on 31 March 2004. Pacific SELECT Balance Fund and Pacific SELECT Income Fund were launched on 11 August
2003 and their first financial year-end will be on 30 June 2004. There are no audited financial statements for these
stated Funds as at the date of this Prospectus.
4.
Significant Accounting Policies
(a) Basis Of Accounting
The financial statements have been prepared under the historical cost convention and comply with applicable
Approved Accounting Standards issued by the Malaysian Accounting Standards Board (“MASB”) and the
Securities Commission Guidelines on Unit Trust Funds, modified by the revaluation of investments indicated in
the accounting policy below.
(b) Investment
Quoted equity securities, derivative instruments and loan stocks are valued at the last done market price
quoted at the Kuala Lumpur Stock Exchange on the last business day of the financial year/period.
The unquoted corporate bonds are valued at cost adjusted for accretion of discount or amortisation of
premium to maturity date as agreed by the Manager and the Trustees.
(c) Dividend Income
Gross dividends from quoted shares are accounted for on a declared basis when the shareholders’ right to
receive payment is established.
(d) Interest Income
Interest income is accounted for on the accrual basis.
(e) Profit From Islamic Money Market Instruments
Profit from Islamic money market instruments is accounted for on the accrual basis.
(f) Realised Profit/(Loss) On Sale Of Investments
The realised profit/(loss) on sale of investments is measured as the difference between the net disposal
proceeds and the carrying amount of the investment. The carrying amount for determining the profit/(loss)
on sale of investments is based on the weighted average cost method for quoted equity, derivative
instruments and loan stocks and specific identification method for unquoted corporate bonds.
(g) Distribution Equalisation
Distribution equalisation is accounted for on the date of creation and cancellation of units. It represents the
amount of distributable income included in the creation and cancellation prices of units.
5.
Taxation
The dividend and interest income of the Funds after deducting the tax allowable expenses are liable to Malaysian
income tax at the statutory rate of taxation of the respective years of assessment. Interest income is exempt from
tax effective from year of assessment 1999. Profit on sale of investments earned by the Funds is tax exempt.
112
FINANCIAL INFORMATION OF THE COMPANY
IV. THE COMPANY
Pacific Mutual Fund Bhd was incorporated on 15 March 1995. PacificMas Berhad owns 85% equity interest in the share
capital of Pacific Mutual Fund Bhd and Koperasi Angkatan Tentera Malaysia Berhad owns the remaining 15%. The
principal activity of Pacific Mutual Fund Bhd is the establishment and management of unit trust funds. The unit trust
funds which are currently managed by the Company are Pacific Premier Fund, Pacific Pearl Fund, Pacific Dana Aman,
Pacific Millennium Fund, Pacific Recovery Fund, Pacific Income Fund, Pacific Progressive Fund, Pacific Dana Murni,
Pacific Dana KLSI, Pacific SELECT Balance Fund and Pacific SELECT Income Fund.
V.
RESULTS OF THE COMPANY
The Company’s Income Statements and Balance Sheets for the past five (5) financial years are summarised as follows:
INCOME STATEMENTS
Audited
5 Months
Ended
31.5.2003
RM’000
2002
RM’000
Revenue
8,742
31,172
16,598
21,045
11,853
7,100
Profit Before Taxation
2,001
7,364
2,785
4,466
2,013
153
Taxation
(569)
Profit After Taxation
1,432
(2,099)
5,265
Audited
Year Ended 31 December
2001
2000
1999
RM’000
RM’000
RM’000
(843)
1,942
(1,223)
3,243
75
2,088
1998
RM’000
(22)
131
Details of dividend declared and paid by the Company are as follows:
Year Ended
Rate Of Dividend
31 December 1996
31 December 2000
31 December 2002
Net Dividend
RM
150%
20%
20%
2,625,000
720,000
720,000
BALANCE SHEETS
Current Assets
Current Liabilities
Net Current Assets
Property and Equipment
Deferred Taxation
Share Capital
Retained Profits
Audited
As At
31.5.2003
RM’000
2002
RM’000
Audited As At 31 December
2001
2000
1999
RM’000
RM’000
RM’000
29,164
(11,819)
26,806
(10,770)
23,919
(12,162)
14,827
(4,980)
9,974
(2,601)
8,281
(3,045)
17,345
2,219
(360)
16,036
2,045
(309)
11,757
1,602
(132)
9,847
1,559
(120)
7,373
1,590
(200)
5,236
1,729
(290)
19,204
17,772
13,227
11,286
8,763
6,675
5,000
14,204
5,000
12,772
5,000
8,227
5,000
6,286
5,000
3,763
5,000
1,675
19,204
17,772
13,227
11,286
8,763
6,675
113
FINANCIAL INFORMATION OF THE COMPANY
1998
RM’000
VI. AUDITORS
The financial statements of the Company for the year ended 31 December 1998 to 31 December 2002 were audited
by another firm of chartered accountants. All the financial statements for the period covered in this report were
reported on without qualification.
Ernst & Young
No. AF0039
Chartered Accountants
Gloria Goh Ewe Gim
No. 1685/4/05(J)
Partner
114
FINANCIAL INFORMATION OF THE COMPANY
UNAUDITED INTERIM FINANCIAL STATEMENTS OF THE FUNDS
The Directors have confirmed that the unaudited Statement of Income and Expenditure and Statement of Assets and
Liabilities of the Funds as set out below have been approved by the Manager’s Board of Directors and they reflect a true
and fair view of the state of affairs of the Funds as at their respective dates:
Statement Of Income And Expenditure
INVESTMENT INCOME
Gross dividends
Interest income/Profit from Islamic money
market instrument
Accretion of discounts on bonds/unquoted
Islamic debt securities
(Loss)/Profit on sale of quoted investments
PACIFIC
PEARL
FUND
1.4.2003
to
30.9.2003
PACIFIC
DANA
AMAN
1.4.2003
to
30.9.2003
PACIFIC
PACIFIC
PROGRESSIVE
DANA
FUND
MURNI
1.1.2003
Launch Date
to
25.3.2003
30.9.2003
to
30.9.2003
(RM’000)
(RM’000)
PACIFIC
DANA
KLSI
Launch Date
25.3.2003
to
30.9.2003
(RM’000)
(RM’000)
(RM’000)
3,697
1,067
2,277
1,915
258
139
–
556
20
6
68
61
–
114
–
(3,631)
3,101
(275)
(131)
25
1,201
7,354
122
539
51
1,671
100
28
1,874
100
218
262
17
–
140
10
130
10
1
–
74
63
31
2
–
1,873
2,255
310
282
11
(672)
(592)
5,099
(371)
(188)
(54)
257
–
40
3
Net (Loss)/Income After Taxation
Distribution Equalisation
(1,264)
187
4,728
(53)
(242)
(1)
257
(31)
37
9
Undistributed Net Income Brought Forward
(1,077)
17,705
4,675
8,249
(243)
2,064
226
–
46
–
Undistributed Net Income Carried Forward
16,628
12,924
1,821
226
46
EXPENSES
Manager’s fee
Trustee’s fee
Amortisation of premium on bonds/unquoted
Islamic debt securities
Administration expenses
Net (Loss)/Income Before Taxation
Taxation
115
UNAUDITED INTERIM FINANCIAL STATEMENTS OF THE FUNDS
Statement Of Asset And Liabilities
PACIFIC
PEARL
FUND
(RM’000)
ASSETS
Quoted equity securities
Derivative instruments
Loan stocks
Unquoted corporate bonds/ Islamic
debt securities
Liquid assets
Other assets
PACIFIC
DANA
AMAN
(RM’000)
As At 30.9.2003
PACIFIC
PROGRESSIVE
FUND
(RM’000)
PACIFIC
DANA
MURNI
(RM’000)
PACIFIC
DANA
KLSI
(RM’000)
188,167
2,278
2,158
19,013
177,430
5,779
–
43,044
16,881
678
–
–
–
–
–
26,283
2,289
–
–
–
31,342
16,148
36,275
9,132
5,773
1,040
2,762
402
565
57
259,106
271,660
24,372
29,447
2,911
LIABILITIES
Creditors and accruals
4,396
6,112
251
900
10
Total Liabilities
4,396
6,112
251
900
10
NET ASSET VALUE
254,710
265,548
24,121
28,547
2,901
UNITHOLDERS’ FUNDS
254,710
265,548
24,121
28,547
2,901
0.6805
0.4908
0.5047
0.4939
0.5182
Total Assets
NET ASSET VALUE PER UNIT (RM)
Directors:
CHOI SIEW HONG
TAN SRI DATO’ WONG KUM CHOON
DATO’ HAJI MUSTAFA BIN MOHAMAD ALI
DATUK FONG WENG PHAK
DR NEOH SOON KEAN
MAK TIAN MENG
MEJ (B) BIBI ZARJAAN BINTI AKHBAR KHAN
116
UNAUDITED INTERIM FINANCIAL STATEMENTS OF THE FUNDS
DIRECTORS’ DECLARATION
This Master Prospectus has been seen and approved by the Directors of the Company and they collectively and individually
accept full responsibility for the accuracy of all information contained herein and confirm, having made all enquiries which
are reasonable in the circumstances, that to the best of their knowledge and belief, there are no other facts the omission
of which would make any statement herein misleading.
Directors:
CHOI SIEW HONG
TAN SRI DATO’ WONG KUM CHOON
DATO’ HAJI MUSTAFA BIN MOHAMAD ALI
DATUK FONG WENG PHAK
DR NEOH SOON KEAN
MAK TIAN MENG
MEJ (B) BIBI ZARJAAN BINTI AKHBAR KHAN
CONSENT
a)
The consent of the Trustees, Corporate Syariah Consultants (Advisors), Banker, Auditors and Reporting Accountants
and Tax Adviser to the inclusion in this Prospectus of their names in the manner and context in which such names
appear have been given before the issue of this Prospectus and have not subsequently been withdrawn.
b) The consent of the Auditors and Reporting Accountants to the inclusion in this Prospectus of their names and the
Accountants’ Report in the manner and form in which they are contained in this Prospectus have been given before
the issue of this Prospectus and have not subsequently been withdrawn.
c)
The consent of the Tax Adviser and Tax Agent to the inclusion in this Prospectus of their names and Tax Adviser’s letter
in the manner and form in which they are contained in this Prospectus have been given before the issue of this
Prospectus and have not subsequently been withdrawn.
117
DIRECTORS’ DECLARATION/CONSENT
PACIFIC MUTUAL FUND BHD
MASTER APPLICATION FORM
Please Read These Notes Before Completing The Application Form
1. ELIGIBILITY
Individual applicant
To apply for units, you must be 18 years old and above on your last birthday.
Joint applicant
■
Cash Plan Option I (Lump Sum Purchase)/Saver’s Plan
You may nominate a second applicant for your account. If the second applicant is below 18 years old, the Master
Application Form (MAF) must be accompanied by a copy of documentary evidence of the minor’s age (eg. birth
certificate or new NRIC). Pacific Mutual will only act on instruction given by the first applicant.
■
■
Cash Plan Option II (Loan Financing)
The first and second applicants must be above 18 years old.
EPF Plan
No joint application is allowed.
For joint application, all correspondences relating to the investment units will be sent to the first applicant.
All applications must be accompanied by a copy of the applicant’s identity card, passport or other identification.
Corporate applicant
Corporate applicant must submit a certified true copy of Certificate of Incorporation, Form 24, Form 49, Memorandum
and Articles of Association and Board of Directors’ Resolution to the Manager.
2. PAYMENT FOR INVESTMENT
The completed MAF should be accompanied by payment and submitted to any Pacific Mutual office, or its
authorised representatives.
The allotment of units will be based on the date of investment subject to clearance of the cheque. Cheque/bank draft
must be made payable to “PACIFIC MUTUAL FUND BHD” and include bank commission for outstation cheque.
3. TRANSACTION ADVICE SLIP
A computer generated Transaction Advice Slip (TAS) showing your unitholdings will be issued to you as proof of receipt
of payment.
4. AUTHORITY TO OPERATE ACCOUNT
First applicant
■
Both parties must sign or affix their thumb print on the MAF for the first time purchase. For subsequent purchases and
any other matters relating to the investment, only the first applicant can sign the relevant form. Pacific Mutual will only
act on instruction given by first applicant.
■
Where one applicant is below 18 years old, the MAF must be signed the first applicant and accompanied by evidence
of the minor’s age. Pacific Mutual will only act on an instruction given by the first applicant.
Both of us
■
Where both applicants are above 18 years old, both parties must sign or affix their thumb print on the MAF. Pacific
Mutual will only act on instruction given jointly by both parties.
Either one of us (both applicants must be above 18 years old)
■
Both parties must sign or affix their thumb print on the MAF for the first time purchase. For subsequent purchases and
any other matters relating to the investment, either applicant can sign the relevant form. Pacific Mutual will act on
instruction given by either applicant.
In the event of a death of any registered jointholder or units, the survivor will be the only person recognised by the Manager
and the Trustee as having title to or interest in the investment units, except where the units are pledged as collateral to financial
institutions. If jointholder is a minor, the Manager and Trustee shall recognise the estate of the deceased as having title to or
interest in the investment units.
Additional notes at back page
PACIFIC MUTUAL FUND BHD (336059-U) A subsidiary of PacificMas Berhad
1001, Level 10 Uptown 1, No. 1 Jalan SS21/58, Damansara Uptown, 47400 Petaling Jaya, Selangor Darul Ehsan, Malaysia.
General Line: 03-7725 9877 Customer Care Hotline: 03-7726 6332 Infoline: 019-200-1577/1578 Fax: 03-7725 9860
E-mail: customercare@pacificmutual.com.my Website: www.pacificmutual.com.my
118
MASTER APPLICATION FORM
PACIFIC MUTUAL FUND BHD
MASTER APPLICATION FORM
Please use BLACK ink and complete form in BLOCK letters only. Tick (✔) where appropriate. Please also ensure that you have read and understood the notes
printed overleaf before completing this form.
First Time Investment (please complete Sections 1-7)
Additional Investment (please complete Section 1, 5# & 6)
1. YOUR ACCOUNT PARTICULARS
Individual Application
First Applicant’s Name :
New NRIC/Passport No :
Date of Birth :
–
DD
EPF No
Sex :
–
Race :
MM
Male
Female
Bumiputera
Chinese
Indian
Malaysian
Singaporean
Others
Others
YYYY
:
Nationality :
Occupation :
*Please select from the codes below
Second Applicant’s Name (if any) :
Relationship to 1st applicant : _________________________________________________
New NRIC/Passport/Birth Certificate No :
Date of Birth :
–
DD
–
MM
YYYY
2. YOUR CORRESPONDENCE ADDRESS
Address
:
Postcode
:
Tel No
:
E-mail Address
:
–
(H) / (HP)
–
(O)
5. YOUR INVESTMENT PREFERENCE
FUND
CASH
PLAN TYPE
EPF SAVER’S
FOR ADDITIONAL INVESTMENT #
Unit Trust A/C No.
Please tick (✔) one only
***TYPE OF
ACCOUNT
Please select
from below
AMOUNT/DEPOSIT
RM
Monthly Savings
(RM)
1)__________________
2)__________________
3)__________________
4)__________________
5)__________________
6)__________________
CASH PLAN OPTION II (For Bank Use Only)
FUND
PLAN
TYPE
***TYPE OF
ACCOUNT
DOWNPAYMENT
Amount / Deposit
FINANCING APPLIED
Amount / Loan
Please select
from below
RM
RM
___________________
6. YOUR INSURANCE APPLICATION, DECLARATION AND NOMINATION
(Insurance coverage will only be provided to the First Applicant)
I hereby declare and agree that the insurance coverage shall be on the faith of and conditional upon the truth of the following statements:
i)
I have not been medically advised in the past 12 months to begin a course of medication lasting longer than seven days or undergo further
diagnostic/laboratory tests and/or surgical procedure nor have I been advised or required to be hospitalised for more than two nights in
connection with any disease, sickness or accident;
ii)
I have not been tested, counselled or treated for Human Immunodeficiency Virus (HIV) or AIDS;
Signature of First Applicant
iii) I have not had any proposal for life insurance declined, postponed, rated-up, or modified in any way, by the insurer;
iv) I have not been treated for or been told that I have high blood pressure, heart disease, diabetes, lung disease, liver disease, kidney
cancer, uro-genital, gastro-genital, joints and bones especially spine diseases/problems or any other serious diseases; and
v)
To the best of my knowledge I am now in good health and fully able to work full time.
__________________________
(Insurance coverage will only be
provided to the First Applicant)
If any of the above statements is not true, please give details below.
____________________________________________________________________________________________
8. FOR CONSULTANT / STAFF USE ONLY
Name
: _____________________________
Consultant / Staff Code
:
Date
:
–
DD
Signature
–
MM
________________________________________________
YYYY
119
MASTER APPLICATION FORM
*Occupation Code:
06 Skilled Worker
01 Professional
07 Others
02 Managerial
03 Clerical
04 Student
05 Businessman
F218651
Corporate Application
Name :
Business Registration No
:
Contact Person
:
Designation
:
Country of Incorporation
:
Malaysia
Status
:
Bumiputera Controlled
Business
:
Singapore
Others
Non-Bumiputera Controlled
Non-Malaysian Controlled
** Please select from the codes below
3. YOUR DISTRIBUTION INSTRUCTION (only applicable for cash Plan Option 1)
FOR OFFICE USE ONLY
Distribution (if any) to be reinvested into further units
Unitholder Type
Distribution warrant/cheque to be posted to the correspondence address stated
herein.
Doc-Type
1
Sub Type
2
3
4
B/Slip
4. AUTHORITY TO OPERATE ACCOUNT
Only applicable for joint application :
We hereby authorise Pacific Mutual to act on the instruction given below for
redemption of units and any transactions in respect of the units held by us as joint
applicants. If no instruction is indicated below, Pacific Mutual must only act on
instruction given by both applicants to effect any transactions.
First applicant
Both of us
Either one of us
Pymt 1
Pymt 2
Financial Institution
State Code
Transaction Date
–
DD
–
MM
YYYY
SAVER’S PLAN
Bank
Account No.
No.of
Years
FUND
TYPE
OPTION
CODE
SCHEME
CODE
DISCOUNT
FLAG
•
•
•
•
•
•
Unit Trust
Repayment Period
:
year(s)
Date of Approval For
:
Unit Trust Financing
–
DD
Branch
Stamp
NOMINEE CODE
FUND
TYPE
OPTION
CODE
SCHEME
CODE
DISCOUNT
FLAG
–
MM
YYYY
Signature : ___________________
•
7. SIGNATURE(S)
I/We have read and fully understood the relevant Prospectus and Supplemental Prospectus (if any) in respect of this investment and I/We agree to be bound by all the
terms and conditions in the Fund’s Deed, Prospectus and Supplemental Deed(s) and Prospectus(es) (if any) thereto.
________________________________________________________
________________________________________________________
Signature or thumb print 1 (for First / Corporate Applicant)
Signature or thumb print 2 (for Second Applicant)
**Business Code :
01 Agriculture, Forestry &
Fishery
02 Automobile
03 Construction/Property Devpt
04 Finance/Banking
05
06
07
08
09
Government/Public Admin
Insurance & Real Estate
Manufacturing
Mining
Retail Trade
10
11
12
99
120
Service
Transportation
Wholesale Trade
Others
MASTER APPLICATION FORM
***Type of Account
01 Retirement
02 Education (you may request for the
Authorisation Form for Trust Arrangement)
03 Personal
04 Corporate
Please Read These Additional Notes Before Completing The Application Form
5. DISTRIBUTION INSTRUCTION
Distributions declared by the Fund will be automatically reinvested into further units of the same Fund except for Cash Plan
Option I (Lump Sum Purchase) where the investor may opt for distribution cheque. If the distribution cheque is not
presented within the six (6) months’ validity period, the distribution will be automatically reinvested into further units based
on the Manager’s prevailing Buying Price after the said expiry date.
The distribution instruction opted for the first time applies to all Funds. If distribution instruction is not specified, distribution
will be automatically reinvested. Subsequently, should you wish to change the distribution instruction of any of the Funds,
kindly complete and send the “Change of Distribution Instruction Form” to the Manager.
6. RIGHT OF MANAGER
The Manager reserves the right to accept or reject any application in whole or in part without assigning any reason.
7. CHANGE OF APPLICATION DETAILS
The Manager must be notified immediately in writing of any change of address or resident status or other particulars stated
in this form.
8. INDEMNITY
The applicant(s) hereby agree to indemnify the Manager, the Trustee and any of their Agents against any actions,
proceedings, claims, losses, damages, costs and expenses which may be brought against, suffered or incurred by any or all
of them arising either directly or indirectly out of or in connection with the Manager accepting, relying on or failing to act
on any instructions given by or on behalf of the applicant unless due to the wilful default or negligence of the Manager.
UNIT TRUST LOAN/FINANCING RISK DISCLOSURE STATEMENT
Investing In A Unit Trust Fund With Borrowed/Financed Money Is More Risky Than Investing With Your Own Savings.
You should assess if loan/financing is suitable for you in light of your objectives, attitude to risk and financial circumstances.
You should be aware of the risks, which would include the following:
(i)
The higher the margin of financing (that is, the amount of money you borrow/obtain from financing for every ringgit
of your own money that you put in as deposit or down payment) the greater the potential for losses as well as gains.
(ii)
You should assess whether you have the ability to service the repayments on the proposed loan/financing. If your loan
is a variable rate loan, and if interest rates rise, your total repayment amount will be increased.
(iii) If unit prices fall beyond a certain level, you may be asked to provide additional acceptable collateral or pay additional
amounts on top of your normal instalments. If you fail to comply within the time prescribed, your units may be sold
to settle your loan/financing.
(iv) Returns on unit trusts are not guaranteed and may not be earned evenly over time. This means that there may be some
years where returns are high and other years where losses are experienced. Whether you eventually realise a gain or
loss may be affected by the timing of the sale of your units. The value of units may fall just when you want your money
back even though the investment may have done well in the past.
The brief statement cannot disclose all the risks and other aspects of loan/financing. You should therefore carefully study the
terms and conditions before you decide to take the loan/financing. If you are in doubt in respect of any aspect of this Risk
Disclosure Statement or the terms of the loan/financing, you should consult the institution offering the loan/financing.
Acknowledgement of Receipt of Risk Disclosure Statement
I acknowledge that I have received a copy of this Unit Trust Loan/Financing Risk Disclosure Statement and understand
its contents.
Signature :
Full Name :
Date
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MASTER APPLICATION FORM
:
LIST OF PACIFIC MUTUAL FUND BHD OFFICES AND
INSTITUTIONAL UNIT TRUST AGENTS
HEAD OFFICE
1001, Level 10, Uptown 1, No. 1 Jalan SS21/58, Damansara Uptown, 47400 Petaling Jaya, Selangor Darul Ehsan
Tel: 03-7725 9877 Fax: 03-7725 9860 E-mail: customercare@pacificmutual.com.my Website: www.pacificmutual.com.my
BRANCHES
Pulau Pinang
78, Ground Floor, Lebuh Gereja, 10200 Pulau Pinang
Tel: 04-261 5188 Fax: 04-261 5189 E-mail: penang@pacificmutual.com.my
Perak Darul Ridzuan
9A, Persiaran Greentown 8, Pusat Perdagangan Greentown, 30450 Ipoh, Perak
Tel: 05-242 4322 Fax: 05-242 4323 E-mail: ipoh@pacificmutual.com.my
Melaka
601 & 601A, Jalan Melaka Raya 10, Taman Melaka Raya, 75000 Melaka
Tel: 06-282 8788 Fax: 06-286 8788 E-mail: melaka@pacificmutual.com.my
Johor Darul Takzim
114A, 1st Floor, Jalan Harimau Tarum, Taman Century, 80250 Johor Bahru, Johor
Tel: 07-335 2098 Fax: 07-335 2099 E-mail: jb@pacificmutual.com.my
Sarawak
Lot 893, 2nd Floor, Waterfront Commercial Centre, 98000 Miri, Sarawak
Tel: 085-428 055 Fax: 085-438 055 E-mail: miri@pacificmutual.com.my
87-B, Ground Floor, Jalan Ban Hock, 93100 Kuching, Sarawak
Tel: 082-233 933 Fax: 082-422 733 E-mail: kuching@pacificmutual.com.my
Sabah
Block BC, Lot 16, 1st Lorong Ikan Juara, Sadong Jaya, 88100 Kota Kinabalu, Sabah
Tel: 088-251 088 Fax: 088-251 059 E-mail: kk@pacificmutual.com.my
AGENCY OFFICES
PULAU PINANG
Bukit Mertajam
Tel: 04-621 1980
SELANGOR DARUL EHSAN
Dataran Prima, Petaling Jaya
Kawasan Perindustrian Bkt Serdang
Taman Chi Liung, Klang
Tel: 03-7880 0733
Tel: 03-8942 4410
Tel: 03-3371 9118
KUALA LUMPUR
Menara Mutiara Bangsar
Taman Sri Segambut
Tel: 03-2283 3252 Fax: 03-2283 1252 E-mail: nrsheth@pc.jaring.my
Tel/Fax: 03-6251 0006 E-mail: pb_chong@hotmail.com
NEGERI SEMBILAN DARUL KHUSUS
Jalan Tun Dr. Ismail, Seremban
Tel: 06-762 5770
Fax: 06-763 5368
E-mail: caroleloong@hotmail.com
MELAKA
Taman Malim Jaya
Taman Melaka Raya
Tel: 06-337 6558
Tel: 06-281 5329
Fax: 06-337 6553
Fax: 06-282 4486
E-mail: awbh@pd.jaring.my
E-mail: antsclub@yahoo.com
JOHOR DARUL TAKZIM
Jalan Wayang, Kluang
Taman Intan, Kluang
Tel/Fax: 07-772 5752 E-mail: kktanag@tm.net.my
Tel: 07-776 4909 Fax: 07-776 9454 E-mail: pmf_klg@time.net.my
SARAWAK
Simpang Tiga, Kuching
Bintulu
Sibu
Tel: 082-412 768 Fax: 082-427 768 E-mail: klsbong@tm.net.my
Tel/Fax: 086-330 055 E-mail: pmf1668@pd.jaring.my
Tel/Fax: 084-325 055 E-mail: pmfsibu@tm.net.my
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Fax: 04-621 1780
E-mail: gtkoe@tm.net.my
Fax: 03-7880 0703 E-mail: ronlch@tm.net.my
E-mail: ericscng@tm.net.my
Fax: 03-3371 8375 E-mail: marktan@pc.jaring.my
LIST OF PACIFIC MUTUAL FUND BHD OFFICES AND INSTITUTIONAL UNIT TRUST AGENTS
INSTITUTIONAL UNIT TRUST AGENTS
OCBC Bank (Malaysia) Berhad (295400-W)
Tel: 03-2694 8766
Standard Chartered Bank Malaysia Berhad (115793 P)
HSBC Bank Malaysia Berhad (127776-V)
Southern Bank Berhad (5303-W)
Tel: 03-2050 7878
Tel: 03-2087 3000
CIMB Securities Sdn Bhd (163712-V)
Tel: 03-2084 9999
United Overseas Bank (Malaysia) Bhd (271809 K)
Alliance Bank Malaysia Berhad (88103-W)
CIMB Private Banking (18417-M)
RHB Bank Berhad (6171-M)
Tel: 03-7726 5007
Tel: 03-2612 8121
Tel: 03-2730 2844
Tel: 03-2723 8688
Tel: 03-9206 8118
As our IUTAs have their specific category of customers, they may not carry the complete set of our Funds. Investments made via our IUTAs
may be subject to different terms and conditions.
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LIST OF PACIFIC MUTUAL FUND BHD OFFICES AND INSTITUTIONAL UNIT TRUST AGENTS
" To reach out for excellence, to persevere,
to mutually trust and support.
That's the essence of
growing together with Pacific Mutual
for a brighter future."
PACIFIC MUTUAL FUND BHD (336059-U)
A subsidiary of PacificMas Berhad
1001 Level 10 Uptown 1, No. 1 Jalan SS21/58, Damansara Uptown, 47400 Petaling Jaya, Selangor Darul Ehsan, Malaysia.
General Line: 03-7725 9877 Customer Care Hotline: 03-7726 6332 Infoline: 019-200 1577/1578 Fax: 03-7725 9860
E-mail: customercare@pacificmutual.com.my Website: www.pacificmutual.com.my