master prospectus - kenanga investors...regularly, open to the public and has adequate liquidity for...

MASTERPROSPECTUSTHIS MASTER PROSPECTUS IS DATED 30 JUNE 2015 AND EXPIRES ON 29 JUNE 2016.

21 November 199630 December 199929 July 20028 January 20023 December 201230 April 200122 November 200429 July 200229 August 200729 August 20064 July 200729 August 200729 August 2007

Date of Constitution being the date of the Principal Deeds establishing the Funds:

Incorporating 22 Funds :

Kenanga Premier Fund Kenanga Growth Fund Kenanga Islamic Fund Kenanga Syariah Growth Fund Kenanga Asia Paci�c Total Return Fund Kenanga Balanced Fund Kenanga Islamic Balanced Fund Kenanga Bond Fund Kenanga Malaysian Inc Fund Kenanga Cash Plus Fund Kenanga i-Enhanced Cash Fund Kenanga Islamic Money Market Fund Kenanga Money Market Fund

Kenanga Blue Chip FundKenanga Growth Opportunities FundKenanga Shariah Growth Opportunities FundKenanga Ekuiti Islam FundKenanga Managed Growth FundKenanga Diversi�ed FundKenanga Shariah Balanced FundKenanga Income Plus FundKenanga Bon Islam Fund

Kenanga OneAnswerTM Investment Funds which was constituted on 16 April 2004 and consists of:

Manager:

Kenanga Investors Berhad (353563-P)

Trustees:

Universal Trustee (Malaysia) Berhad (17540-D) CIMB Commerce Trustee Berhad (313031-A)

CIMB Islamic Trustee Berhad (167913-M) RHB Trustees Berhad (573019-U)

INVESTORS ARE ADVISED TO READ AND UNDERSTAND THE

CONTENTS OF THE MASTER PROSPECTUS. IF IN DOUBT, PLEASE

CONSULT A PROFESSIONAL ADVISER.

FOR INFORMATION CONCERNING CERTAIN RISK FACTORS, WHICH

SHOULD BE CONSIDERED BY PROSPECTIVE INVESTORS, SEE ‘RISK

FACTORS’ COMMENCING ON PAGE 53.

KENANGA INVESTORS BERHAD MASTER PROSPECTUS

i

Message from the CEO Dear investors, Thank you for expressing your interest in our Kenanga Premier Fund, Kenanga Growth Fund, Kenanga Islamic Fund, Kenanga Syariah Growth Fund, Kenanga Asia Pacific Total Return Fund, Kenanga Balanced Fund, Kenanga Islamic Balanced Fund, Kenanga Bond Fund, Kenanga Malaysian Inc Fund, Kenanga Cash Plus Fund, Kenanga i-Enhanced Cash Fund, Kenanga Islamic Money Market Fund, Kenanga Money Market Fund, Kenanga Blue Chip Fund, Kenanga Growth Opportunities Fund, Kenanga Shariah Growth Opportunities Fund, Kenanga Ekuiti Islam Fund, Kenanga Managed Growth Fund, Kenanga Diversified Fund, Kenanga Shariah Balanced Fund, Kenanga Income Plus Fund and Kenanga Bon Islam Fund (“the Funds”). Please refer to Section 4: Key Data of the Funds for the Funds’ main features (e.g. objectives and the investment policies and strategies of the Funds), which will provide you with a better understanding of how our Funds work. We offer a wide range of funds to cater to different investors needs, therefore it is best that you understand how each of the Funds work and consider whether they are suitable for you. You may also refer to Section 4: Key Data of the Funds for the “Investors Profile” for the Funds to assess whether a particular Fund is suitable for your needs. All investments carry some form of risk. The risk profile of a particular Fund will very much depend on the underlying investments of the Fund. Different funds have different risk profiles; please refer to Section 4: Key Data of the Funds for a better understanding of the principal risks involved when investing in the Funds. All investments in the Funds will be subjected to direct (sales charge, switching fee, transfer fee and bank commission payable during cheque clearing) and indirect (management fee, trustee fee and other permitted expenses) charges and fees. Please refer to Section 4: Key Data of the Funds for information on the fees, charges and expenses related to the Funds. If you are interested in purchasing Units of any of the Funds, have any queries or require further information, please contact our regional or agency offices, details of which can be found at Section 3: Directory of the Managers’ Offices and List of IUTA or you may send an email to [email protected]. Alternatively, you may contact any of our distributors listed at page 8 of this Master Prospectus. We look forward to being of service to you. Best wishes,

Ismitz Matthew De Alwis Executive Director / Chief Executive Officer

mailto:[email protected]


ii

RESPONSIBILITY STATEMENTS AND STATEMENTS OF DISCLAIMER This Master Prospectus has been reviewed and approved by the directors of the Manager and they collectively and individually accept full responsibility for the accuracy of the information. Having made all reasonable enquiries, they confirm to the best of their knowledge and belief, that there are no false or misleading statements, or omission of other facts which would make any statement in the Master Prospectus false or misleading. The Securities Commission Malaysia has authorised the Funds and a copy of this Master Prospectus has been registered with the Securities Commission Malaysia. The authorisation of the Funds, and registration of this Master Prospectus, should not be taken to indicate that Securities Commission Malaysia recommends the said Funds or assumes responsibility for the correctness of any statement made, opinion expressed or report contained in this Master Prospectus. The Securities Commission Malaysia is not liable for any non-disclosure on the part of the Manager, the management company responsible for the said Funds and takes no responsibility for the contents in this Master Prospectus. The Securities Commission Malaysia makes no representation on the accuracy or completeness of this Master Prospectus, and expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of its contents. INVESTORS SHOULD RELY ON THEIR OWN EVALUATION TO ASSESS THE MERITS AND RISKS OF THE INVESTMENT. IF INVESTORS ARE UNABLE TO MAKE THEIR OWN EVALUATION, THEY ARE ADVISED TO CONSULT PROFESSIONAL ADVISERS. Additional Statements This Master Prospectus is not intended to and will not be issued and distributed in any country or jurisdiction other than Malaysia (“Foreign Jurisdiction”). Consequently, no representation has been and will be made as to its compliance with the laws of any Foreign Jurisdiction. Accordingly, no offer or invitation to subscribe or purchase Units of any of the Funds to which this Master Prospectus relates may be made in any Foreign Jurisdiction or under any circumstances where such action is unauthorised. No Units will be issued or sold based on this Master Prospectus later than one (1) year after the date of this Master Prospectus. Investors should note that they may seek recourse under the Capital Markets and Services Act 2007 for breaches of securities laws and regulations including any statement in the Master Prospectus that is false, misleading, or from which there is a material omission; or for any misleading or deceptive act in relation to the Master Prospectus or the conduct of any other person in relation to the Funds. The Kenanga Islamic Fund, Kenanga Syariah Growth Fund, Kenanga Islamic Balanced Fund, Kenanga i-Enhanced Cash Fund, Kenanga Islamic Money Market Fund, Kenanga Shariah Growth Opportunities Fund, Kenanga Ekuiti Islam Fund, Kenanga Shariah Balanced Fund and Kenanga Bon Islam Fund have been certified as Shariah-compliant by the Shariah adviser appointed for those Funds.


iii

TABLE OF CONTENTS CHAPTER PAGE

1. DEFINITIONS 1

2. CORPORATE DIRECTORY 4

3. DIRECTORY OF THE MANAGER’S OFFICES AND LIST OF IUTA 8

4. KEY DATA OF THE FUNDS 9

5. RISK FACTORS 53

6. INFORMATION ON THE FUNDS 62

7. SHARIAH INVESTMENT GUIDELINES ADOPTED BY IBFIM, CLEANSING PROCESS AND ZAKAT (TITHE) FOR THE SHARIAH-COMPLIANT FUNDS (KIF, KSGF, KIBF, KIECF, KIMMF, KSGOF, KEIF, KSBF and KBIF) 121

8. DISTRIBUTION POLICY FOR THE FUNDS 124

9. PERFORMANCE AND HISTORICAL HIGHLIGHTS OF THE FUNDS 130

10. FEES, CHARGES, EXPENSES AND TRANSACTION DETAILS 193

11. SALIENT TERMS OF THE DEEDS 203

12. MANAGEMENT AND ADMINISTRATION OF THE FUNDS 211

13. TRUSTEES’ PROFILES 219

14. SHARIAH ADVISER 230

15. CONFLICT OF INTERESTS AND RELATED PARTY TRANSACTIONS 232

16. APPROVALS AND CONDITIONS 233

17. CONSENTS 234

18. ADDITIONAL INFORMATION 235

19. DOCUMENTS AVAILABLE FOR INSPECTION 237

20. TAX ADVISER’S LETTER 238


1

1. DEFINITIONS Act means the Capital Markets and Services Act 2007.

Accrual Period means a twelve (12) months period ending on the last day of December of

each year.

Bursa Malaysia means the stock exchange managed or operated by Bursa Malaysia Securities Berhad.

Business Day means a day on which the Bursa Malaysia is open for trading.

BNM means Bank Negara Malaysia.

Cash Produce means all cash receivable by the Trustee by way of :

Dividend, bonus and interest/profit;

The proceeds of sale of rights and other cash received;

Any profit or any part thereof on the sale of shares or debentures or other properties; and

Any other sum having the nature of income which the Manager and the Trustee (having consulted the auditors of the Funds) deem to be cash produce.

Deed(s) means the deeds or master deeds for the respective Funds and any other

supplemental deeds or master supplemental deeds that may be entered into between the Manager and the Trustee of the respective Funds and registered with the SC.

deposits has the same meaning as defined in the Financial Services Act 2013.

Eligible Market means a market that is regulated by a regulatory authority, operates regularly, open to the public and has adequate liquidity for the purposes of the Funds.

EPF means the Employees Provident Fund.

External Fund Manager Kenanga Islamic Investors Berhad (Company No. 451957-D) – for Kenanga Syariah Growth Fund, Kenanga Islamic Fund, Kenanga Islamic Balanced Fund, Kenanga i-Enhanced Cash Fund, Kenanga Islamic Money Market Fund, Kenanga Shariah Growth Opportunities Fund, Kenanga Ekuiti Islam Fund, Kenanga Shariah Balanced Fund and Kenanga Bon Islam Fund.

financial institutions If the institution is in Malaysia, a licensed bank, licensed investment bank or a licensed Islamic bank; If the institution is outside Malaysia, any institution that is licensed, registered, approved or authorised by the relevant banking regulator to provide financial services.

Fund (s) means the following unit trust schemes offered for sale through this Master Prospectus are individually referred as “the Fund” or collectively referred as “the Funds”:

KENANGA PREMIER FUND KENANGA GROWTH FUND KENANGA ISLAMIC FUND KENANGA SYARIAH GROWTH FUND KENANGA ASIA PACIFIC TOTAL RETURN FUND KENANGA BALANCED FUND KENANGA ISLAMIC BALANCED FUND KENANGA BOND FUND KENANGA MALAYSIAN INC FUND KENANGA CASH PLUS FUND KENANGA i-ENHANCED CASH FUND KENANGA ISLAMIC MONEY MARKET FUND KENANGA MONEY MARKET FUND

KPF KGF KIF KSGF KAPTRF KBF KIBF KBNF KMIF KCPF KIECF KIMMF KMMF


2

KENANGA BLUE CHIP FUND KENANGA GROWTH OPPORTUNITIES FUND KENANGA SHARIAH GROWTH OPPORTUNITIES FUND KENANGA EKUITI ISLAM FUND KENANGA MANAGED GROWTH FUND KENANGA DIVERSIFIED FUND KENANGA SHARIAH BALANCED FUND KENANGA INCOME PLUS FUND KENANGA BON ISLAM FUND

KBCF KGOF KSGOF KEIF KMGF KDF KSBF KIPF KBIF

Guidelines means Guidelines on Unit Trust Funds issued by the Securities Commission as may be amended from time to time.

General Investment Account (GIA)

refers to investment account which is based on Shariah contracts and applicable for investment purposes.

IBFIM means the Shariah adviser for KIF, KSGF, KIBF, KIMMF, KIECF, KSGOF, KEIF, KSBF and KBIF.

Islamic deposits has the same meaning as defined in the Islamic Financial Services Act 2013.

IUTA means institutional unit trust advisers, an IUTA is an institution, body or organisation that is able to distribute unit trust funds. An IUTA must be registered with the Federation of Investment Managers Malaysia (FiMM).

Kenanga OneAnswerTM

refers to Kenanga OneAnswerTM

Investment Funds, which consists of: Kenanga Blue Chip Fund, Kenanga Growth Opportunities Fund, Kenanga Shariah Growth Opportunities Fund, Kenanga Ekuiti Islam Fund, Kenanga Managed Growth Fund, Kenanga Diversified Fund, Kenanga Shariah Balanced Fund, Kenanga Income Plus Fund and Kenanga Bon Islam Fund.

MARC Malaysian Rating Corporation Berhad.

Management Expense Ratio (MER)

Total annual expenses incurred by the Fund x 100 Average NAV of the Fund calculated on daily basis This ratio will inform you of the total expenses incurred by the Fund during the year as compared to its average NAV. Total expenses include 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/KIB/We Kenanga Investors Berhad (353563-P).

Master Prospectus means the master prospectus for the Funds.

MGS Malaysian Government Securities.

Moody’s means Moody’s Investors Service.

MSCI AC Asia Pacific Index Morgan Stanley Capital International All Country Asia Pacific Index.

Net Asset Value (NAV) Net asset value of the Fund is the total value of the Fund’s assets minus its liabilities at the valuation point. In computing the annual management fee and annual trustee fee, the NAV of the Fund should include 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 the NAV divided by its total number of Units in circulation.

Portfolio Turnover Ratio (PTR) refers to the measure of trading activity or how frequently assets within a fund are bought and sold by the managers. A fund with a 0.5 times portfolio turnover ratio, for example, replaces half of its holdings during the period under review. A fund with a high portfolio turnover rate will typically


3

incur more transaction costs than one with a low portfolio turnover rate. The computation of PTR is as follows: PTR = (Total acquisitions of the Fund + Total disposals of the Fund)

divided by 2 ------------------------------------------------------------------- Average NAV of the Fund calculated on a daily basis

RAM RAM Rating Services Berhad.

Repurchase Price per Unit means the NAV per Unit of the Fund as at the next valuation point (forward pricing) after the repurchase request is received by the Manager.

SACSC means the Shariah Advisory Council of the Securities Commission Malaysia.

Securities Commission or SC means the Securities Commission Malaysia established under the Securities Commission Act 1993.

Selling Price per Unit means the NAV per Unit of a Fund as at the next valuation point (forward pricing) after a written request to buy Units is received by the Manager.

Shariah means Islamic Law comprising the whole body of rulings pertaining to human conducts derived from sources of Shariah.

Shariah adviser refers to IBFIM (763075–W) or any Shariah adviser appointed for KIF, KSGF, KIBF, KIECF, KIMMF, KSGOF, KEIF, KSBF and KBIF which includes its permitted assigns, successors in title and any new or replacement Shariah adviser.

Shariah requirements means a phrase or expression which generally means making sure that any human conduct must not involve any elements which are prohibited by the Shariah and that in performing that conduct all the essential elements that make up the conduct must be present and each essential element must meet all the necessary conditions required by the Shariah for that element.

Standard & Poor means Standard & Poor’s Rating Services.

sukuk refers to certificates of equal value which evidence undivided ownership or investment in the assets using Shariah principles and concepts endorsed by the SACSC.

Trustee(s) Universal Trustee (Malaysia) Berhad for Kenanga Islamic Fund and Kenanga Bond Fund; CIMB Commerce Trustee Berhad for Kenanga Premier Fund, Kenanga Growth Fund, Kenanga Balanced Fund, Kenanga Malaysian Inc Fund, Kenanga Cash Plus Fund, Kenanga i-Enhanced Cash Fund, Kenanga Money Market Fund, Kenanga Blue Chip Fund, Kenanga Growth Opportunities Fund, Kenanga Shariah Growth Opportunities Fund, Kenanga Ekuiti Islam Fund, Kenanga Managed Growth Fund, Kenanga Diversified Fund, Kenanga Shariah Balanced Fund, Kenanga Income Plus Fund and Kenanga Bon Islam Fund; CIMB Islamic Trustee Berhad for Kenanga Syariah Growth Fund, Kenanga Islamic Balanced Fund, Kenanga Islamic Money Market Fund; and RHB Trustees Berhad for Kenanga Asia Pacific Total Return Fund.

Unit means a unit of a Fund and includes a fraction of a unit.

Unit Holders means the person(s) for the time being registered under the provisions of the Deed(s) as the holder(s) of Units and includes the Manager and joint-holders.

http://www.investorglossary.com/transaction-costs.htm


4

2. CORPORATE DIRECTORY MANAGER

Kenanga Investors Berhad (Company No. 353563-P)

REGISTERED OFFICE

8th Floor, Kenanga International,

Jalan Sultan Ismail, 50250 Kuala Lumpur, Malaysia. Tel: 03-2162 1490 Fax: 03-2161 4990

BUSINESS OFFICE

Suite 12.02, 12

th Floor,

Kenanga International, Jalan Sultan Ismail, 50250 Kuala Lumpur, Malaysia. Tel: 1800 88 3737 Fax: 03-2161 8807 / 03-2057 3722 E-mail: [email protected] Website: www.KenangaInvestors.com.my

EXTERNAL FUND MANAGER (KIF, KSGF, KIBF, KIECF, KIMMF, KSGOF, KEIF, KSBF and KBIF)

Kenanga Islamic Investors Berhad (Company No. 451957-D)

REGISTERED OFFICE 8

th Floor, Kenanga International,

Jalan Sultan Ismail, 50250 Kuala Lumpur, Malaysia Tel: 03- 2162 1490 Fax: 03- 2161 4990

BUSINESS OFFICE Suite 12.03, 12

th Floor,

Kenanga International Jalan Sultan Ismail, 50250 Kuala Lumpur Tel: 03 -2057 3688 Fax: 03-2161 8805

TRUSTEE (KIF and KBNF)

Universal Trustee (Malaysia) Berhad (UTB) (Company No. 17540-D)

REGISTERED AND BUSINESS OFFICE

1 Jalan Ampang, 3rd Floor,

50450 Kuala Lumpur, Malaysia. Tel: 03-2070 8050 Fax: 03-2031 8715, 2032 3194, 2070 1296


5

TRUSTEE (KPF, KGF, KBF, KMIF, KMMF, KCPF, KIECF, KBCF, KGOF, KSGOF, KEIF, KMGF, KDF, KSBF,KIPF and KBIF)

CIMB Commerce Trustee Berhad (CCTB) (Company No. 313031-A)

REGISTERED OFFICE Level 13, Menara CIMB Jalan Stesen Sentral 2, Kuala Lumpur Sentral 50470 Kuala Lumpur Tel: 03-2261 8888 Fax: 03-2261 0099

BUSINESS OFFICE Level 21, Menara CIMB Jalan Stesen Sentral 2, Kuala Lumpur Sentral 50470 Kuala Lumpur Tel: 03-2261 8888 Fax: 03-2261 9889

TRUSTEE (KSGF, KIBF and KIMMF)

CIMB Islamic Trustee Berhad (CITB) (Company No. 8424 H)

REGISTERED OFFICE Level 13, Menara CIMB Jalan Stesen Sentral 2, Kuala Lumpur Sentral 50470 Kuala Lumpur Tel: 03-2261 8888 Fax: 03-2261 0099


TRUSTEE (KAPTRF)

RHB Trustees Berhad (RTB) (Company No. 573019-U)

REGISTERED OFFICE Level 9, Tower One RHB Centre Jalan Tun Razak 50450 Kuala Lumpur

BUSINESS OFFICE 6th Floor, Plaza OSK

Jalan Ampang 50450 Kuala Lumpur Malaysia Tel: 03-9207 7777 Fax: 03-2175 3288

TRUSTEE’S (CCTB) DELEGATES

CIMB Bank Berhad (Company No. 13491-P)

REGISTERED OFFICE Level 13, Menara CIMB Jalan Stesen Sentral 2, Kuala Lumpur Sentral 50470 Kuala Lumpur Tel : 03 - 2261 8888 Fax : 03 – 2261 8889


6


TRUSTEE’S (CITB) DELEGATES

CIMB Islamic Bank Berhad (Company No. 671380-H)

REGISTERED OFFICE

Level 13, Menara CIMB Jalan Stesen Sentral 2, Kuala Lumpur Sentral 50470 Kuala Lumpur Tel : 03-2261 8888 Fax : 03-2261 8889

BUSINESS OFFICE

Level 21, Menara CIMB Jalan Stesen Sentral 2, Kuala Lumpur Sentral 50470 Kuala Lumpur Tel: 03-2261 8888 Fax: 03-2261 9892

TRUSTEE’S (RTB) DELEGATES

Deutsche Bank (Malaysia) Berhad (Company No. 312552-W)

REGISTERED OFFICE Level 18-20, Menara IMC

8 Jalan Sultan Ismail 50250 Kuala Lumpur Tel: 03-2053 6788 Fax: 03-2031 9822

BUSINESS OFFICE Level 18-20, Menara IMC

8 Jalan Sultan Ismail 50250 Kuala Lumpur Tel: 03-2053 6788 Fax: 03-2031 9822

BOARD OF DIRECTORS Datuk Syed Ahmad Alwee Alsree (Chairman) OF THE MANAGER Syed Zafilen Syed Alwee (Independent Director) Peter John Rayner (Independent Director) Imran Devindran bin Abdullah (Independent Director) Dato’ Bruce Kho Yaw Huat Ismitz Matthew De Alwis INVESTMENT COMMITTEE MEMBERS

Dato’ Bruce Kho Yaw Huat (Chairman) Syed Zafilen Syed Alwee (Independent Member)

OF THE FUNDS Peter John Rayner (Independent Member) Ismitz Matthew De Alwis COMPANY SECRETARY Norliza Abd Samad (MAISCA 7011089)

9th Floor, Kenanga International,

Jalan Sultan Ismail, 50250 Kuala Lumpur, Malaysia.

AUDITOR Ernst & Young

Level 23A, Menara Milenium, Jalan Damanlela, Pusat Bandar Damansara, 50490 Kuala Lumpur, Malaysia.


7

TAX ADVISER Ernst & Young Tax Consultants Sdn Bhd Level 23A, Menara Milenium, Jalan Damanlela, Pusat Bandar Damansara, 50490 Kuala Lumpur, Malaysia.

SOLICITOR Naqiz & Partners

No. 42A, Lorong Dungun, Damansara Heights, 50490 Kuala Lumpur

SHARIAH ADVISER (KSGF, KIF, KIBF, KIMMF, KIECF, KSGOF, KEIF, KSBF and KBIF)

IBFIM (Company No. 763075-W) 3

rd Floor, Menara Takaful Malaysia, Jalan Sultan Sulaiman

50000 Kuala Lumpur, Malaysia. Tel: 03-2031 1010 Fax: 03-2078 5250 Website: www.ibfim.com

PRINCIPAL BANKER

RHB Bank Berhad (6171-M) RHB Centre, Jalan Tun Razak, 50400 Kuala Lumpur, Malaysia

Standard Chartered Bank Malaysia Berhad (115793-P) Level 16, Menara Standard Chartered, 30 Jalan Sultan Ismail, 50250 Kuala Lumpur, Malaysia Public Bank Berhad (6463-H) 27

th Floor, Menara Public Bank, 146 Jalan Ampang, 50450 Kuala

Lumpur, Malaysia

Federation of Investment Managers Malaysia

Federation of Investment Managers Malaysia (FiMM) 19-06-1, 6

th Floor, Wisma Tune, 19, Lorong Dungun, Damansara

Heights, 50490 Kuala Lumpur, Malaysia. Tel No.: 03-2093 2600 Fax No.: 03-2093 2700 Email: [email protected]


8

3. DIRECTORY OF THE MANAGER’S OFFICES AND LIST OF IUTA REGIONAL OFFICES Kuala Lumpur Suite 12.02, 12

th Floor, Kenanga International

Jalan Sultan Ismail, 50250 Kuala Lumpur, Malaysia Tel: 1800 88 3737 Fax: 03-2161 8807 / 03-2057 3722

Johor Bahru Lot 11.03, 11

th Floor, Menara MSC Cyberport

5 Jalan Bukit Meldrum 80300 Johor Bahru, Johor Tel: 07-223 7505/4798 Fax: 07-223 4802

Klang No. 12 Jalan Batai Laut 3, Taman Intan 41300 Klang, Selangor Darul Ehsan Tel:03-3341 8818, 3348 7889 Fax:03-3341 8816 Penang 16

th Floor , Menara Boustead Penang

39, Jalan Sultan Ahmad Shah 10050 Penang Tel : 04 227 3788 Fax : 04 210 6644

Kuching 1

st Floor, No 71, Lot 7

Lot 10900, Jalan Tun Jugah 93350 Kuching, Sarawak Tel: 082-572 228 Fax: 082-572 229 Kota Kinabalu A-03-11, 3

rd Floor

Block A Warisan Square Jalan Tun Fuad Stephens 88000 Kota Kinabalu, Sabah Tel: 088-447 089/448 106 Fax: 088-447 039

Ipoh Suite 1, 2

nd Floor

63 Persiaran Greenhill 30450 Ipoh, Perak Darul Ridzuan Tel: 05-254 7573/7570 Fax: 05-254 7606 Melaka No. 25-1 Jalan Kota Laksamana 2/17 Taman Kota Laksamana Seksyen 2 75200 Melaka Tel: 06-281 8913, 282 0518 Fax: 06-281 4286

Seremban 2

nd Floor, No. 1D-2 Jalan Tuanku Munawir

70000 Seremban, Negeri Sembilan Tel : 06 761 5678 Fax : 06 761 2242 Miri 2

nd Floor, Lot 1264

Centre Point Commercial Centre Jalan Melayu 98000 Miri, Sarawak Tel: 085-416 866 Fax: 085-416 866

INSTITUTIONAL UNIT TRUST ADVISERS* Banks 1. HSBC Bank Malaysia Berhad 2. RHB Bank Berhad 3. Standard Chartered Bank Malaysia Berhad 4. Standard Chartered Saadiq Berhad 5. OCBC Bank Malaysia Berhad 6. Alliance Bank (Malaysia) Berhad 7. CIMB Investment Bank Berhad 8. HSBC Amanah Malaysia Berhad 9. CIMB Bank Berhad 10. Kenanga Investment Bank Berhad 11. Hong Leong Bank Berhad 12. AmBank (M) Berhad 13. United Overseas Bank (Malaysia) Berhad 14. Kuwait Finance House (Malaysia) Berhad 15. Bank Muamalat Malaysia Berhad

Non-Banks 1. Apex Investment Services Berhad 2. Phillip Mutual Berhad 3. iFast Capital Sdn Bhd 4. Malacca Securities Sdn Bhd

* Please be informed that the IUTA above may not distribute all the Funds covered in this Master Prospectus.


9

4. KEY DATA OF THE FUNDS THIS SECTION IS ONLY A SUMMARY OF THE SALIENT INFORMATION ABOUT THE FUNDS. INVESTORS SHOULD READ AND UNDERSTAND THE WHOLE MASTER PROSPECTUS BEFORE MAKING ANY INVESTMENT DECISIONS.

FUND Kenanga Premier

Fund (KPF)

Kenanga Growth Fund (KGF)

Kenanga Islamic Fund (KIF)

Kenanga Syariah Growth Fund

(KSGF)

FUND PROFILE

Fund Category

Fund Type

Equity

Growth

Equity

Growth

Equity (Islamic)

Growth

Equity (Islamic)

Growth

INVESTMENT OBJECTIVE

Please refer to pages: 62, 64, 66 and 68

KPF aims to provide

consistent annual returns and medium to long-term capital

appreciation.

KGF aims to provide Unit

Holders with long-term capital

growth.

KIF aims to achieve

steady capital growth and income distribution

(incidental) over the medium to long-term

period by investing in a diversified portfolio of

authorised investments in accordance with accepted Shariah

principles.

KSGF aims to provide Unit

Holders with long-term capital growth

by investing principally in

equities that comply with Shariah

requirements.

INVESTMENT STRATEGY


The Fund seeks to

maximise total returns by providing

investors with a combination of

capital appreciation and income

distribution, if any, while reducing risk through diversified investments mainly

in equities.

The Fund’s assets

are actively invested in a

diversified portfolio of Malaysian

equity and equity-related securities of companies with

sustainable business model

that is trading at a discount to its intrinsic value.

The Fund seeks to

maximise total returns by providing investors with a combination of capital appreciation

and income distribution, if any, while reducing risk through diversified

investments in Shariah-compliant

equities.

The Fund’s assets

are actively invested in a

diversified portfolio of Malaysian

Shariah-compliant equity and equity-

related securities of companies with

sustainable business model and trading at a discount to its intrinsic value.

ASSET ALLOCATION IN TERMS OF PERCENTAGE OF THE NAV OF THE FUND


Minimum – 2% in liquid assets

70% - 98% in equities

5% - 25% in liquid assets

75% - 95% in equities

Minimum – 2% in Islamic liquid assets

70% - 98% in Shariah-compliant equities

5% - 25% in Islamic liquid assets

75% - 95% in Shariah-compliant equities

PRINCIPAL RISKS

Please refer to pages: 54 and 55

Market Risk

Particular Stock Risk

Currency Risk

Country Risk

Market Risk


Market Risk


Reclassification of Shariah Status Risk

Currency Risk

Country Risk

Market Risk




10

FUND Kenanga Asia Pacific Total

Return Fund (KAPTRF)

Kenanga Balanced Fund (KBF)

Kenanga Islamic Balanced Fund

(KIBF)

FUND PROFILE

Fund Category

Fund Type

Equity

Growth

Balanced

Growth & income

Balanced (Islamic)

Growth & income


Please refer to pages: 70, 73 and 75

KAPTRF aims to provide

capital appreciation over the long-term (over 5 years) by

investing in equities and equity related securities of

companies in the Asia Pacific region.

KBF aims to provide a portfolio of investments

with lower risk and lower volatility for investors.

KIBF aims to achieve steady capital growth and income distribution (if any) over the medium to long-term period by investing in a diversified

portfolio of authorised investments in accordance with Shariah requirements.

INVESTMENT STRATEGY


The Fund seeks to achieve its investment objective by investing in a diversified portfolio of equities and

equity related securities of companies in the Asia

Pacific region.

The Fund seeks to

maximise total returns by providing investors with a

combination of capital appreciation and income distribution, if any, while

reducing risk through diversified investments in equities and fixed income

securities.

The Fund seeks to maximise

total returns by providing investors with a combination of capital appreciation and income distribution, if any, while reducing risk through diversified investments in

Shariah-compliant equities and sukuk.



Equities and equity related securities allocation:

Minimum – 70%

Maximum – 99% Deposits and money market instruments allocation:

Minimum – 1%

Maximum – 30%

Minimum – 2% in liquid assets

Maximum – 60% in equities

Maximum – 40% in fixed income instruments

Minimum – 2% in Islamic liquid assets

Maximum – 60% in Shariah-compliant equities

Maximum – 40% in sukuk

PRINCIPAL RISKS

Please refer to pages: 56 to 57

Equity Risk

Warrant Risk

Currency Risk

Country Risk

Market Risk

Liquidity Risk

Settlement Risk

Market Risk


Credit Risk

Interest Rate Risk

Currency Risk

Country Risk

Market Risk


Credit Risk

Interest Rate Risk


Currency Risk

Country Risk


11

FUND Kenanga Bond Fund

(KBNF)

Kenanga Malaysian Inc

Fund (KMIF)

Kenanga Cash Plus Fund

(KCPF)

Kenanga i-Enhanced Cash

Fund (KIECF)

FUND PROFILE

Fund Category

Fund Type

Fixed income

Income

Equity

Growth

Fixed income

Income

Islamic fixed income

Income



KBNF aims to provide investors with a steady

income* stream over the medium to long-term

period through investments primarily in

fixed income instruments.

*Note: The primary mode of distribution of income will be

done via reinvestment of additional Units. Kindly refer

to mode of distributions at page 124 for full details.

KMIF aims to

provide consistent annual returns and

medium to long-term capital

appreciation by investing in

Malaysian securities with global reach.

KCPF aims to

provide investors a regular stream of income* through

investments in short to medium-term^

fixed income instruments with

high level of liquidity

1.

KIECF aims to

provide investors a regular stream of income* and high

level of liquidity2 to

meet cash flow requirement while maintaining capital

preservation3.

INVESTMENT STRATEGY


The Fund will invest in a

diversified portfolio consisting principally of fixed income securities and other permissible

investments.

The Fund seeks to

maximise total returns by providing

investors with capital appreciation and income (if any), while reducing risk through diversified investments mainly

in equities and short-term money

market instruments.

To achieve the objective of the

Fund, it will invest in high quality short to medium-term^ fixed income instruments with minimum credit ratings of A3 or P2

(by RAM) or equivalent rating by

other recognized rating agencies.

To achieve the objective of the

Fund, it will invest in high quality short to

medium-term^ sukuk with minimum credit ratings of A3 or P2 (by RAM) or

equivalent rating by MARC.



Minimum - 2% in liquid assets

70% - 98% in fixed income instruments

Up to 98% in Malaysian equities

Minimum 2% in liquid assets

Bonds – 0% - 50%

Cash/ money market instruments – 50% - 100%

Sukuk – 0% - 60%

Cash/ Islamic money market instruments – 40% - 100%

PRINCIPAL RISKS


Market Risk

Credit Risk

Interest Rate Risk

Market risk


Market Risk

Interest Rate Risk

Credit/ Default Risk

Reinvestment Risk

Liquidity Risk

Counterparty Risk

Market risk

Interest Rate Risk


Reinvestment Risk

Liquidity Risk

Counterparty Risk

* Income will be reinvested into additional Units into the Fund unless Unit Holders request for cheques to be

sent to them. ^ Short to medium-term refers to a period of 3 – 5 years.


12

1 High level of liquidity refers to fixed income instruments that are very liquid and can be sold off easily.

2 High level of liquidity refers to the liquidity of the Fund, where Unit Holders receive their redemption proceeds faster as compared to other retail funds. The period of redemption proceeds for this Fund is the next Business Day after the redemption application is received by the Manager at or before 4.00 p.m. on a Business Day.

3 The Fund is not a capital protected nor a capital guaranteed fund.


13

FUND Kenanga Islamic

Money Market Fund (KIMMF)

Kenanga Money Market Fund

(KMMF)

FUND PROFILE

Fund Category

Fund Type

Money market (Islamic)

Income

Money market

Income



KIMMF aims to provide investors with a regular income* stream that comply with Shariah requirements whilst maintaining

capital stability.

*Note: The primary mode of distribution of income will be done via reinvestment of additional Units. Kindly refer to mode of distributions at page 124 for full details.

KMMF aims to provide investors with a

regular income* stream while maintaining capital stability.


INVESTMENT STRATEGY


The Fund will invest in short term Islamic

money market instruments and government or government-backed

sukuk.

The Fund will invest in short-term money

market instruments, government or government-backed securities and

corporate bonds.



Up to 100% in Islamic money market instruments and Shariah-compliant government securities and sukuk

Up to 100% in money market instruments and government/government-backed/corporate bonds

PRINCIPAL RISKS


Market Risk

Credit Risk

Interest Rate Risk

Reinvestment Risk

Market Risk

Credit Risk

Interest Rate Risk

Reinvestment Risk


14

Kenanga OneAnswerTM

FUND Kenanga Blue Chip Fund

(KBCF)

Kenanga Growth Opportunities Fund

(KGOF)

Kenanga Shariah Growth Opportunities Fund

(KSGOF)

FUND PROFILE

Fund Category

Fund Type

Equity

Growth & income

Equity

Growth

Islamic equity

Growth



KBCF aims to achieve long-term* capital growth through investment in companies that have relatively larger market

capitalization^.

KGOF aims to achieve

consistent capital appreciation over the long-

term* by primarily investing in relatively smaller capitalized

companies# with good growth prospects

3.

KSGOF aims to achieve consistent capital appreciation over the long-term* by primarily investing in Shariah-compliant securities with good growth prospects

3.

INVESTMENT STRATEGY


The Fund will construct a

diversified investment portfolio that consists of

fundamentally sound companies that have large

market capitalization1 and are

dividends paying. The Fund may invest up to 98% of its NAV in such companies.

These companies are generally referred to as “blue

chip” companies.

The Fund is an equity growth fund that is actively managed

based on both quantitative and qualitative disciplines. Its

strategy is to invest in companies

2 that are likely to

yield higher earnings growth than the market average.

The Fund is an Islamic equity

growth fund that is actively managed based on both

quantitative and qualitative disciplines. Its strategy is to invest in Shariah-compliant securities that are likely to

yield higher earnings growth that the market average.



Equities – 50% - 98%

Fixed income securities/ cash – 2% - 50%



Shariah-compliant equities – 70% - 98%

Sukuk/ cash –2% - 30%

PRINCIPAL RISKS

Please refer to page: 60

Market Risk

Stock-specific Risk

Liquidity Risk

Derivatives/ Structured Products Risk

Market Risk

Stock-specific Risk

Liquidity Risk


Market Risk

Stock-specific Risk

Liquidity Risk



* Long-term refers to a period of 7 years and above. ^ Relatively larger market capitalization refers to companies with market capitalization of more than RM4 billion

at the point of purchase. # Relatively smaller capitalized companies refers to companies with market capitalization of less than RM4

billion at the point of purchase. 1

The Fund will invest in companies with market capitalization of more than RM4 billion at the point of purchase. 2

The Fund will invest in companies with market capitalization of less than RM4 billion at the point of purchase. 3

Good growth prospects refers to companies with higher earnings growth than the market average.


15

Kenanga OneAnswerTM

FUND Kenanga Ekuiti Islam Fund

(KEIF)

Kenanga Managed Growth Fund

(KMGF)

Kenanga Diversified Fund (KDF)

FUND PROFILE

Fund Category

Fund Type

Islamic equity

Growth

Balanced

Income & growth

Mixed asset

Income & growth



KEIF aims to achieve long-

term* capital growth through investment in Shariah-

compliant stocks.

KMGF aims to achieve long-term* capital growth through

diversified investments in equities and bonds.

KDF aims to provide investors

capital appreciation with stability of income over a

medium to long-term* investment horizon from a

diversified investment portfolio.

INVESTMENT STRATEGY


Investments are on Shariah-

compliant securities i.e. equities that offer medium-term^ earnings growth and

that are inexpensively priced

1. Firstly, the strategy

begins with a thorough macroeconomic analysis and

determining the investable universe of stocks for the

Fund.

The Fund invests in a mixture of equities, bonds and money market instruments. The Fund

engages active tactical allocation between asset classes with emphasis on

managed growth and selects securities based on current earnings, growth prospects

and potential for capital appreciation as well as

income distribution. Tactical asset allocation between

assets and sectors is determined by analyzing the economy, which influences

the business cycle, and market factors.

The Fund’s asset allocation includes a mixture of equity

securities, fixed income securities and money market instruments. The maximum equity weighting is limited to 70% of the Fund’s NAV. In

times of actual or anticipated adverse market conditions, the

equity exposure may be reduced. The Fund engages

active tactical asset allocation between the asset classes

which is determined by analyzing the economy, which influences the business cycle,

and market factors.




Sukuk/ cash – 2% - 50%





PRINCIPAL RISKS


Market Risk

Stock-specific Risk

Liquidity Risk



Stock-specific Risk

Market risk

Liquidity Risk

Reinvestment Risk


Interest Rate Risk

Counterparty Risk


Market risk

Interest Rate Risk


Liquidity Risk

Reinvestment Risk

Counterparty Risk

Stock-specific Risk


* Long-term refers to a period of 7 years and above. ^ Medium-term refers to a period of between 5 – 7 years. 1 Inexpensively priced refers to equities that have a lower price earnings ratio compared with the industry

average.


16

Kenanga OneAnswerTM

FUND Kenanga Shariah Balanced

Fund (KSBF)

Kenanga Income Plus Fund (KIPF)

Kenanga Bon Islam Fund (KBIF)

FUND PROFILE

Fund Category

Fund Type

Islamic balanced

Income & growth

Bond

Income

Islamic bond

Income



KSBF aims to achieve long-term* capital growth through

diversified investments in equities, fixed income and money market instruments

which are Shariah-compliant.

KIPF aims to provide

investors with a regular income^ stream through

investments in bonds and money market instruments.

KBIF aims to provide investors with a regular income^ stream through investments in Islamic

bonds and Islamic money market instruments.

INVESTMENT STRATEGY


The Fund aims to invest in a

balanced mix between Shariah-compliant equities, sukuk and Islamic money market instruments. The

Fund’s Shariah- compliant equity exposure ranges from

40% to 60% of the Fund’s NAV, with the remaining consisting of sukuk and Islamic money market

instruments.

The Fund invests in securities that have a minimum rating of “investment grade” i.e. rated

at least BBB3 by RAM or equivalent rating by MARC or

other rating agencies.

The Fund invests in a

diversified portfolio of sukuk and Islamic money market

instruments. The Fund invests in sukuk that have a minimum rating of “investment grade” i.e. rated at least BBB3 by

RAM or equivalent rating by MARC or other rating

agencies.




Sukuk/ Islamic money market instruments – 40% - 60%

Fixed income securities – 50% - 98%

Cash – 2% - 50%

Sukuk – 50% - 98%

Cash – 2% - 50%

PRINCIPAL RISKS


Market Risk

Interest Rate Risk


Reinvestment Risk

Liquidity Risk

Counterparty Risk

Stock-specific Risk



Market Risk

Interest Rate Risk

Liquidity Risk

Reinvestment Risk


Counterparty Risk

Market Risk

Interest Rate Risk

Liquidity Risk

Reinvestment Risk


Counterparty Risk

* Long-term refers to a period of 7 years and above. ^ Income will be reinvested into additional Units into the Fund unless Unit Holders request for cheques to be

sent to them.


17

FUND Kenanga Premier Fund

(KPF)

Kenanga Growth Fund

(KGF)

Kenanga Islamic Fund

(KIF)


(KSGF)

INVESTOR PROFILE


KPF is suitable for investors who are willing to accept moderate to high

risk in order to achieve a

reasonable return on their capital over the medium to long-term period ranging from three (3) to five (5)

years.

KGF is suitable for investors who:

have long-term investment time horizon of more than five (5) years; and

have a moderate risk profile with tolerance for short-term periods of volatility.

KIF is suitable for investors who want

a portfolio of investments that

complies with Shariah

requirements and at the same time, willing to accept moderate to high

risk in order to achieve a

reasonable return on their capital over

the medium to long-term period

ranging from three (3) to five (5) years.

KSGF is suitable for investors who:

have a long-term investment time horizon of more than five (5) years;

have a moderate risk profile with tolerance for short-term periods of volatility; and

have a preference for Shariah compliant investments.

DISTRIBUTION POLICY

Please refer to pages: 124 onwards

The Fund intends to pay income by way of distributions or by

the creation of additional Units after

the end of each Accrual Period or

any specified period, where possible.

Income distribution is incidental, if any.

The Fund intends to pay income by

way of distributions or by the creation of additional Units

after the end of each Accrual Period or any

specified period, where possible.


DISTRIBUTION REINVESTMENT POLICY

Please refer to page: 124 onwards

In the absence of instructions from a Unit Holder, distributions from the Fund are automatically reinvested into additional Units of that Fund based on the NAV per Unit with

NO sales charge on the next Business Day after the distribution declaration date.

PERFORMANCE BENCHMARK


FTSE-Bursa

Malaysia 100 Index

FTSE-Bursa

Malaysia Kuala Lumpur Composite

Index

FTSE-Bursa

Malaysia Emas Shariah Index

FTSE-Bursa Malaysia Emas Shariah Index

GENERAL INFORMATION

Trustee

Financial Year End

Launch Date/ Commencement Date

Units In Circulation as at 31 March 2015

CIMB Commerce Trustee Berhad

28 February

#

26 November 1996

231,393,700 Units


31 May

#

17 January 2000

470,609,809 Units

Universal Trustee (Malaysia) Berhad

31 December

15 August 2002

77,747,388 Units

CIMB Islamic Trustee Berhad

31 May

#

29 January 2002

133,710,446 Units

# Change of financial year end with effect from 19 November 2013


18

FUND

Kenanga Asia Pacific Total Return Fund

(KAPTRF)



(KIBF)

Kenanga Bond Fund

(KBNF)

INVESTOR PROFILE


The Fund is suitable for investors who:

are seeking long-term capital growth on the amount invested;

are willing to accept equity risk to obtain potentially higher returns; and

want to have investments in the Asia Pacific region.

KBF is suitable for investors who are willing to accept moderate risk in

order to achieve a reasonable return on their capital over the medium to long-term period ranging from three (3) to five (5)

years.

KIBF is suitable for investors who want a

portfolio of investments that

complies with Shariah requirements and at

the same time, willing to accept moderate

risk in order to achieve a steady

capital growth and income distribution (if any) over the medium

to long-term period ranging from three (3)

to five (5) years.

KBNF is suitable for relatively

conservative investors who wish to

have more stable income* and returns and have medium to long term investment time horizons ranging from three (3) to five

(5) years.


DISTRIBUTION POLICY


As the objective of the Fund is to provide capital appreciation, distribution of

income, if any, will be incidental.

The Fund aims to pay a regular

distribution annually, where possible.

Subject to the availability of income,

the Fund will distribute income

annually.

The Fund aims to pay a regular distribution

annually, where possible.







The performance benchmark is 10% growth in NAV per annum (compounded*) over the long-term.

1

60% of the NAV - FTSE-Bursa

Malaysia 100 Index

40% of the NAV -Maybank 12-month fixed deposit rate

60% of the NAV - FTSE-Bursa Malaysia Emas Shariah Index

40% of the NAV - Maybank 12-month

GIA rate

Maybank 12-months fixed deposit rate

GENERAL INFORMATION

Trustee

Financial Year End



RHB Trustees Berhad

30 June

11 July 2013

102,527,875 Units


28 February #

23 May 2001

62,986,081 Units


28 February #

6 December 2004

19,365,792 Units

Universal Trustee (Malaysia) Berhad

31 December

15 August 2002

14,669,788 Units


1 Please note that this is not a guaranteed return, but a benchmark against which the performance of the Fund

may be measured. The Fund may or may not achieve the compounded return* of 10% of the NAV per annum but targets to achieve this growth over the long-term. Please refer to page 72 for brief explanation on “compounded return”.


19

* Income will be reinvested into additional Units into the Fund unless Unit Holders request for cheques to be

sent to them. ^ Short to medium-term refers to a period of 3 – 5 years. 1 The Fund is not a capital protected nor a capital guaranteed fund.

2 Short-term refers to a period of less than 3 years.

FUND Kenanga Malaysian Inc

Fund (KMIF)

Kenanga Cash Plus Fund (KCPF)

Kenanga i-Enhanced Cash Fund

(KIECF)

INVESTOR PROFILE


KMIF is suitable for

investors who are seeking medium to long-term

capital appreciation ranging from three (3) to five (5)

years as well as a diversified investment

consisting of Malaysian equities with global

exposure.

KCPF is suitable for

investors who desire a steady stream of income*,

have short to medium-term^ investment horizon, have low tolerance of investment risks,

want a highly liquid investment portfolio and want a low risk fund as part of the

asset allocation strategy.

KIECF is suitable for investors who desire a steady stream of income*, have low tolerance of investment risks, want a

highly liquid investment portfolio, want a low risk fund as part of the asset allocation strategy, want pricing stability

to ensure preservation of capital

1 and have short-term

2

investment horizon.

DISTRIBUTION POLICY


The Fund intends to pay income by way of

distribution or by the creation of additional Units

after the end of each Accrual Period or any

specified period, where possible.

The Fund seeks to distribute income on a monthly basis.

Income will be distributed

monthly on a best effort basis, if any.



In the absence of instructions from a Unit Holder, distributions from the Fund are automatically reinvested into additional Units of that Fund based on the NAV per Unit with NO

sales charge on the next Business Day after the distribution declaration date.



FTSE-Bursa Malaysia 100

Index

Maybank 1-month fixed

deposit rate

Maybank 1-month GIA rate

GENERAL INFORMATION

Trustee

Financial Year End




31 January

#

9 November 2007

22,700,586 Units


31 October

26 October 2006

36,049,310 Units


31 October

2 August 2007

57,157,386 Units



20

FUND Kenanga Islamic Money Market Fund

(KIMMF)

Kenanga Money Market Fund (KMMF)

INVESTOR PROFILE


KIMMF is suitable for investors who:

seek regular income* that complies with Shariah requirements with capital stability;

have low risk tolerance; and

have short to medium-term investment horizon of less than three (3) years.

*Note: The primary mode of distribution of income will be done via reinvestment of additional Units. Kindly refer to mode

of distributions at page 124 for full details.

KMMF is suitable for investors who:

seek regular income* with capital stability;

have low risk tolerance; and

have short to medium-term investment horizon of less than three (3) years.


DISTRIBUTION POLICY


Subject to the availability of income, the

Fund will distribute income monthly.

Subject to the availability of income, the Fund

will distribute income monthly.







Maybank Overnight Repo Rate


GENERAL INFORMATION

Trustee

Financial Year End




31 May

#

9 November 2007

39,167,714 Units


28 February

#

9 November 2007

77,357,714 Units



21

Kenanga OneAnswerTM

FUND

Kenanga Blue Chip Fund

(KBCF)


(KGOF)


(KSGOF)

INVESTOR PROFILE


KBCF is suitable for investors who:

Are seeking high capital growth;

Have moderate to high-risk tolerence and can withstand significant short-term

1

volatilities; and

Have long-term* investment horizon.

KGOF is suitable for investors who:

Are seeking high capital appreciation;

Have moderate to high-risk tolerance and can withstand significant short-term

1

volatilities; and


KSGOF is suitable for investors who:

Are seeking high capital appreciation from Shariah-compliant securities;

Have moderate to high-risk tolerance and can withstand significant short-term

1

volatilities; and

Have medium to long-term

2 investment

horizon.

DISTRIBUTION POLICY


Income (if any) will be

distributed annually on a best effort basis.

Income (if any) as

secondary objective, is paid annually.

Income (if any) as




In the absence of instructions from a Unit Holder, distributions from the Fund are automatically reinvested into additional Units of that Fund based on the NAV per Unit with NO sales charge on the next Business Day after the distribution declaration date.



FTSE Bursa Malaysia

100 Index

FTSE Bursa Malaysia

Emas Index

FTSE Bursa Malaysia Emas Shariah Index

GENERAL INFORMATION

Trustee

Financial Year End




30 September

23 April 2004

27,873,843 Units


31 August

23 April 2004

11,601,425 Units


30 November

23 April 2004

12,710,477 Units


2 Medium to long-term refers to a period of 5 years or longer.

* Long-term refers to a period of 7 years and above.


22

Kenanga OneAnswerTM

FUND

Kenanga Ekuiti Islam Fund (KEIF)


(KMGF)


INVESTOR PROFILE


KEIF is suitable for investors who:

Are seeking high capital growth from Shariah-compliant securities;

Have relatively high-risk profiles and can withstand significant short-term^ volatilities; and


KMGF is suitable for investors who:

Are seeking a combination of both capital appreciation with income distribution;

Have moderate risk tolerance and can withstand short-term^ volatility; and


KDF is suitable for investors who:

Are seeking a combination of capital appreciation with a modest level of income;

Have moderate risk tolerance and can withstand short-term^ volatility; and

Have medium to long-term

1 investment

horizon.

DISTRIBUTION POLICY










In the absence of instructions from a Unit Holder, distributions from the Fund are automatically reinvested into additional Units of that Fund based on the NAV per Unit with NO sales charge on the next Business Day after the distribution declaration date.




A composite of FTSE

Bursa Malaysia 100 Index (50%) and RAM

Quantshop MGS All Index (50%)

A composite of FTSE Bursa Malaysia 100 Index (60%) and RAM Quantshop MGS

All Index (40%)

GENERAL INFORMATION

Trustee

Financial Year End




30 June

23 April 2004

13,967,179 Units


31 March

23 April 2004

7,112,372 Units


30 November

23 April 2004

5,915,963 Units

^ Short-term refers to a period of less than 3 years. * Long-term refers to a period of 7 years and above. 1

Medium to long-term refers to a period of 5 years or longer.


23

Kenanga OneAnswerTM

FUND

Kenanga Shariah Balanced Fund

(KSBF)


Kenanga Bon Islam Fund

(KBIF)

INVESTOR PROFILE


KSBF is suitable for investors who:

Are seeking returns from a Shariah-compliant fund which has potentially lower volatility compared to an equity fund; and

Have medium to long-term^ investment horizon.

KIPF is suitable for investors who:

Are seeking regular income*;

Have low to moderate risk tolerance; and

Have short to medium-term

1

investment horizon.

KBIF is suitable for investors who:

Are seeking regular income* stream from sukuk;

Have low to moderate risk tolerance; and

Have short to medium-term

1

investment horizon.

DISTRIBUTION POLICY


Income (if any) as



distributed twice a year on a best effort basis.


distributed twice a year on a best effort basis.



In the absence of instructions from a Unit Holder, distributions from the Fund are automatically reinvested into additional Units of that Fund based on the NAV per Unit

with NO sales charge on the next Business Day after the distribution declaration date.



A composite of FTSE Bursa Malaysia Emas

Shariah Index (50%) and RAM Quantshop

Malaysian Government Investment Issue (50%).

RAM Quantshop MGS All

Index

RAM Quantshop

Malaysian Government Investment Issue

GENERAL INFORMATION

Trustee

Financial Year End




30 September

23 April 2004

389,029 Units


31 March

23 April 2004

27,010,450 Units


30 June

23 April 2004

2,906,944 Units

^

Medium to long-term refers to a period of 5 years or longer. * Income will be reinvested into additional Units into the Fund unless Unit Holders request for cheques to be

sent to them. 1 Short to medium-term refers to a period of 3 - 5 years.


24

FUND

Kenanga Premier Fund (KPF)




(KSGF)

FEES AND CHARGES

This table describes the charges that you may DIRECTLY incur when you buy or redeem Units of the Funds.

SALES CHARGE

Direct sales staff of KIB and walk-in customers

Agency Sales

IUTA

Financial Planners

Please refer to pages: 193

Up to 5.50% of the NAV per Unit


Up to 5.50% of the

NAV per Unit


Up to 5.50% of the

NAV per Unit


Up to 5.50% of the

NAV per Unit




Up to 5.50% of the

NAV per Unit




Up to 5.50% of the

NAV per Unit


Note: The Manager may waive or reduce the sales charge imposed. Investors may also negotiate for a lower sales charge with their preferred distributor, subject to the respective channels’ qualifying criterion. Investors who invest in any Funds through the EPF Members’ Investment Scheme pay a lower sales charge which is 3% of the NAV per Unit (or such other maximum rate that may be allowed by the EPF from time to time).

REPURCHASE CHARGE


Agency Sales

IUTA

Financial Planners

Please refer to

page: 196

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

TRANSFER FEE

Nil

SWITCHING FEE

Nil

OTHER CHARGES There are no other charges (except charges levied by banks on remittance of money) payable directly by investors when purchasing or redeeming Units of the Funds.

THERE ARE FEES AND CHARGES INVOLVED AND INVESTORS ARE ADVISED TO CONSIDER THEM BEFORE INVESTING IN THE FUND.

All fees and charges payable to the Manager and the Trustee are subject to goods and services tax as imposed by the government or other authorities from time to time.


25

FUND

Kenanga Asia Pacific Total Return

Fund

(KAPTRF)



(KIBF)

Kenanga Bond Fund

(KBNF)

FEES AND CHARGES

This table describes the charges that you may DIRECTLY incur when you buy or redeem Units of the Funds.

SALES CHARGE


Agency Sales

IUTA

Financial Planners




Up to 5.50% of the

NAV per Unit




Up to 5.50% of the

NAV per Unit




Up to 5.50% of the

NAV per Unit


Nil

Nil

Nil

Nil


REPURCHASE CHARGE


Agency Sales

IUTA

Financial Planners


Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

TRANSFER FEE

Nil

SWITCHING FEE

Nil

OTHER CHARGES

There are no other charges (except charges levied by banks on remittance of money)

payable directly by investors when purchasing or redeeming Units of the Funds.




26

Kenanga Malaysian Inc Fund

(KMIF)


(KCPF)


(KIECF)

FEES AND CHARGES

This table describes the charges that you may DIRECTLY incur when you buy or

redeem Units of the Funds.

SALES CHARGE


Agency Sales

IUTA

Financial Planners


Up to 5.50% of the NAV per

Unit



Unit


Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil


REPURCHASE CHARGE


Agency Sales

IUTA

Financial Planners Please refer to page: 196

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

TRANSFER FEE

Nil

SWITCHING FEE

Nil

OTHER CHARGES

There are no other charges (except charges levied by banks on remittance of money) payable directly by investors when purchasing or redeeming Units of the Funds.




27

Kenanga Islamic Money Market Fund

(KIMMF)


(KMMF)

FEES AND CHARGES

This table describes the charges that you may DIRECTLY incur when you

buy or redeem Units of the Funds.

SALES CHARGE


Agency Sales

IUTA

Financial Planners


Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil


REPURCHASE CHARGE


Agency Sales

IUTA


Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

TRANSFER FEE

Nil

SWITCHING FEE

Nil

OTHER CHARGES

There are no other charges (except charges levied by banks on remittance of money) payable directly by investors when purchasing or redeeming Units of

the Funds.




28

Kenanga OneAnswerTM


(KBCF)


(KGOF)

Kenanga Shariah Growth Opportunities

Fund (KSGOF)

FEES AND CHARGES



SALES CHARGE


Agency Sales

IUTA

Financial Planners



Unit



Unit




Up to 6.50% of the NAV

per Unit





per Unit



REPURCHASE CHARGE


Agency Sales

IUTA


Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

TRANSFER FEE Nil

SWITCHING FEE Nil

OTHER CHARGES





29

Kenanga OneAnswerTM

Kenanga Ekuiti Islam Fund

(KEIF)


(KMGF)


FEES AND CHARGES



SALES CHARGE


Agency Sales

IUTA

Financial Planners



Unit



Unit





per Unit





per Unit



REPURCHASE CHARGE


Agency Sales

IUTA


Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

TRANSFER FEE Nil

SWITCHING FEE Nil

OTHER CHARGES





30

Kenanga OneAnswerTM


(KSBF)



(KBIF)

FEES AND CHARGES



SALES CHARGE


Agency Sales

IUTA

Financial Planners



Unit



Unit





per Unit





per Unit



REPURCHASE CHARGE


Agency Sales

IUTA


Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

TRANSFER FEE Nil

SWITCHING FEE Nil

OTHER CHARGES





31

FUND Kenanga Premier

Fund (KPF)




(KSGF)

FEES AND CHARGES

This table describes the fees that you may INDIRECTLY incur when you invest in Units of the Funds.

ANNUAL MANAGEMENT FEE


1.50% of the NAV

of the Fund per annum.

1.50% of the NAV of the Fund per annum.

1.90% of the NAV


1.50% of the NAV of

the Fund per annum.

ANNUAL TRUSTEE FEE


0.05% of the NAV

of the Fund per annum, calculated

on a daily basis (excluding foreign sub-custodian fee

and charges).

0.05% of the Fund’s

NAV per annum, calculated on a daily

basis.

0.08% of the NAV

of the Fund per annum, subject to a

minimum of RM18,000 per

annum, calculated on a daily basis

(excluding foreign sub-custodian fee

and charges).

0.05% of the Fund’s

NAV per annum, calculated on a daily

basis.

FUND EXPENSES


Commission paid to brokers

Auditors’ fee

Tax adviser’s fee

Valuation fee

Taxes

Foreign sub-custodian charges (where applicable)

Shariah advisory fee (where applicable)

Annual/ interim reports

Independent investment committee member fee

Any other expenses permitted to be charged to the Fund by the Deed




32

FUND


(KAPTRF)

Kenanga Balanced Fund

(KBF)


(KIBF)

Kenanga Bond Fund(KBNF)

FEES AND CHARGES




1.75% of the NAV


1.50% of the NAV




ANNUAL TRUSTEE FEE


0.07% of the NAV

of the Fund per annum, subject to a

minimum of RM16,000 per

annum, calculated on a daily basis


and charges).

0.05% of the NAV

of the Fund per annum,

calculated on a daily basis


and charges).

0.05% of the NAV of the Fund per annum, calculated on a daily

basis (excluding foreign sub-custodian

fee and charges).

0.08% of the NAV of the Fund per annum, subject to a minimum

of RM18,000 per annum, calculated on

a daily basis.

FUND EXPENSES



Auditors’ fee

Tax adviser’s fee

Valuation fee

Taxes









33

FUND Kenanga Malaysian

Inc Fund (KMIF)



(KIECF)

FEES AND CHARGES




1.80% of the NAV of the

Fund per annum.

up to 0.75% of the NAV of

the Fund per annum.


the Fund per annum.

ANNUAL TRUSTEE FEE



Fund per annum, calculated on a daily

basis.


Fund per annum, subject to a minimum of RM9,000 per

annum, calculated on a daily basis.

0.08% of the NAV of the Fund per annum, subject to a minimum of RM9,000 per annum, calculated on

a daily basis.

FUND EXPENSES



Auditors’ fee

Tax adviser’s fee

Valuation fee

Taxes









34

FUND Kenanga Islamic Money Market

Fund (KIMMF)


FEES AND CHARGES




up to 0.50% of the NAV of the Fund

per annum.

up to 0.50% of the NAV of the Fund per

annum.

ANNUAL TRUSTEE FEE


0.02% of the NAV of the Fund per


0.02% of the NAV of the Fund per annum,

calculated on a daily basis.

FUND EXPENSES



Auditors’ fee

Tax adviser’s fee

Valuation fee

Taxes









35

Kenanga OneAnswerTM

FUND Kenanga Blue Chip

Fund (KBCF)


(KGOF)

Kenanga Shariah Growth Opportunities

Fund (KSGOF)

FEES AND CHARGES





the Fund per annum.


the Fund per annum.


the Fund per annum.

ANNUAL TRUSTEE FEE



a daily basis.





a daily basis.

FUND EXPENSES



Auditors’ fee

Tax adviser’s fee

Valuation fee

Taxes









36

Kenanga OneAnswerTM

FUND Kenanga Ekuiti Islam

Fund (KEIF)


(KMGF)


FEES AND CHARGES





the Fund per annum.


the Fund per annum.


the Fund per annum.

ANNUAL TRUSTEE FEE



a daily basis.





a daily basis.

FUND EXPENSES



Auditors’ fee

Tax adviser’s fee

Valuation fee

Taxes









37

Kenanga OneAnswerTM

FUND Kenanga Shariah Balanced Fund

(KSBF)



(KBIF)

FEES AND CHARGES





the Fund per annum.


the Fund per annum.


the Fund per annum.

ANNUAL TRUSTEE FEE



a daily basis.





a daily basis.

FUND EXPENSES



Auditors’ fee

Tax adviser’s fee

Valuation fee

Taxes









38

FUND





(KSGF)

TRANSACTION DETAILS

RM1,000* or such other lower amount as the Manager in its sole discretion allows. (*This includes the amount invested into the Fund and the sales charge that is imposed on an

investor)

MINIMUM INITIAL INVESTMENT


MINIMUM ADDITIONAL INVESTMENT


RM100* or such other lower amount as the Manager in its sole discretion allows.

(*This includes the amount invested into the Fund and the sales charge that is imposed on an investor)

Investors who invest through the EPF Members’ Investment Scheme is required to invest a

minimum additional investment of RM1,000.

MAXIMUM INVESTMENTS

There is no maximum investment limit for individual and corporate investors.

MINIMUM REDEMPTION


The minimum redemption amount is 500 Units for each transaction or such other lower amount

as the Manager in its sole discretion allows.

However, if the redemption request leaves a Unit Holder with less than 500 Units (Minimum Holdings), the Manager will automatically liquidate the balance of the Units held in the Unit

Holder’s account.

FREQUENCY OF REPURCHASE

No limits

MINIMUM HOLDINGS

500 Units or such other lower amount as the Manager in its sole discretion allows.

PAYMENT OF REDEMPTION PROCEEDS


Redemption proceeds will be paid within ten (10) days from the date at which a redemption

request is deemed received.

TRANSFER OF UNITS

Units in the Funds are transferable without any fee and restrictions. A copy of the “Transfer

Form” can be obtained from the Manager’s office.

However, if the transfer request leaves a Unit Holder with less than 500 Units (Minimum Holdings), the Manager will not proceed with the transfer request and the transaction is considered void until the Unit Holder makes a fresh application for the transfer request.

SWITCHING OPTION


In executing his/her transaction, the Unit Holder must ensure that he/she maintain a minimum of 500 Units in his/her account with the respective Funds if he/she intends to stay invested with the Funds. In the event a switching request leaves a Unit Holder with less than 500 Units (Minimum Holdings), the Manager will automatically switch the balance of the Units held in the Unit Holder’s account into the fund selected by the Unit Holder. The minimum number of Units for each switching transaction is 500 Units.

Switching is treated as a withdrawal from one (1) fund and an investment into another fund. A Unit Holder switching from a fund with a lower sales charge, to a fund with a higher sales


39

FUND





(KSGF)

charge will pay the difference in sales charge between the sales charge of these two (2) funds. If a Unit Holder switches from one (1) fund with higher sales charge to another fund with a lower sales charge, the Unit Holder will switch at the NAV per unit of the another fund.

Switching from Shariah-compliant fund to a conventional fund is discouraged especially for Muslim Unit Holders.

COOLING-OFF RIGHT


Six (6) Business Days from the date of receipt of the application. Only given to an investor

who is investing for the first time in any of the unit trust funds managed by the Manager (EPF investors are subject to EPF’s terms and conditions).

Corporations/institutions, staff of the Manager and persons registered to deal in unit trust funds

of the Manager are not entitled.

DEEDS OF THE FUNDS

Deed dated 21 November 1996

Supplemental Deed dated 26 November 1998

Second Supplemental Deed dated 16 November 2000

Third Supplemental Deed dated 19 December 2001

Fourth Supplemental Deed dated 15 April 2005

Master Supplemental Deed dated 1 June 2009

Second Master Supplemental Deed dated 13 October 2010

Third Master Supplemental Deed dated 13 March 2013

Fourth Master Supplemental Deed dated 19 November 2013

Fifth Master Supplemental Deed dated 25 July 2014

Sixth Master Supplemental Deed dated 16 February 2015

Deed dated 30 December 1999

First Supplemental Deed dated 17 January 2002

Second Supplemental Deed dated 18 April 2005

Third Supplemental Deed dated 9 July 2007

Supplemental Master Deed dated 13 October 2010

Second Master Supplemental Deed dated 19 November 2013

Third Master Supplemental Deed dated 25 July 2014

Fourth Master Supplemental Deed dated 16 February 2015

Master Deed dated 29 July 2002



Third Master Supplemental Deed dated 16 February 2015

Deed dated 8 January 2002

Supplemental Deed dated 3 November 2004

Second Supplemental Deed dated 18 April 2005

Third Supplemental Deed dated 13 January 2006

Fourth Supplemental Deed dated 9 July 2007

Supplemental Master Deed dated 13 October 2010

Second Master Supplemental Deed dated 19 November 2013

Third Master Supplemental Deed dated 25 July 2014

Fourth Master Supplemental Deed dated 16 February 2015


40

FUND


(KAPTRF)



(KIBF)

Kenanga Bond Fund

(KBNF)

TRANSACTION DETAILS

RM1,000* or such other lower amount as the Manager in its sole discretion allows. (*This includes the amount invested into the Fund and the sales charge that is imposed on

an investor)







Investors who invest through in the Funds under the EPF Members’ Investment Scheme is

required to invest a minimum additional investment of RM1,000.

MAXIMUM INVESTMENTS


MINIMUM REDEMPTION


The minimum redemption amount is 500 Units for each transaction or such other lower

amount as the Manager in its sole discretion allows.


Holder’s account.


No limits

MINIMUM HOLDINGS






TRANSFER OF UNITS




SWITCHING OPTION Please refer to page: 198

In executing his/her transaction, the Unit Holder must ensure that he/she maintain a minimum of 500 Units in his/her account with the respective Funds if he/she intends to stay invested with the Funds. In the event a switching request leaves a Unit Holder with less than 500 Units (Minimum Holdings), the Manager will automatically switch the balance of the Units held in the Unit Holder’s account into the fund selected by the Unit Holder. The minimum number of Units for each switching transaction is 500 Units.


41

FUND


(KAPTRF)



(KIBF)

Kenanga Bond Fund

(KBNF)

Switching is treated as a withdrawal from one (1) fund and an investment into another fund. A Unit Holder switching from a fund with a lower sales charge, to a fund with a higher sales charge will pay the difference in sales charge between the sales charge of these two (2) funds. If a Unit Holder switches from one (1) fund with higher sales charge to another fund with a lower sales charge, the Unit Holder will switch at the NAV per unit of the another fund.

Switching from Shariah-compliant fund to a conventional fund is discouraged especially for

Muslim Unit Holders.

COOLING-OFF RIGHT






DEEDS OF THE FUNDS

Deed dated 3 December 2012

First Supplemental Deed dated 16 February 2015

Deed dated 30 April 2001







Deed dated 22 November 2004







Master Deed dated 29 July 2002



Third Master Supplemental Deed dated 16 February 2015


42


Fund (KMIF)


(KCPF)


(KIECF)

TRANSACTION DETAILS

RM1,000* or such other lower amount as the Manager in its sole discretion allows.










MAXIMUM INVESTMENTS


MINIMUM REDEMPTION





Holder’s account.


No limits

MINIMUM HOLDINGS




Redemption proceeds will be paid within ten (10) days from

the date at which a redemption request is deemed received.

Redemption proceeds will be paid on the next Business Day if the repurchase request is received by the

Manager before 4 p.m on any Business Day. Any repurchase request received after 4 p.m. on any

Business Day will be deemed received by the Manager on the following Business Day.

Note: Deemed received, is when the fax copy of the

transaction form for redemption request is received at the Manager’s Head Office or the Manager’s branches.

TRANSFER OF UNITS




SWITCHING OPTION


In executing his/her transaction, the Unit Holder must ensure that he/she maintain a minimum of 500 Units in his/her account with the respective Funds if he/she intends to stay invested with the Funds. In the event a switching request leaves a Unit Holder with less than 500 Units (Minimum Holdings), the Manager will automatically switch the balance of the Units held in the Unit Holder’s account into the fund selected by the Unit Holder. The minimum number of Units for each switching transaction is 500 Units. Switching is treated as a withdrawal from one (1) fund and an investment into another fund.


43


Fund (KMIF)


(KCPF)


(KIECF)

A Unit Holder switching from a fund with a lower sales charge, to a fund with a higher sales charge will pay the difference in sales charge between the sales charge of these two (2) funds. If a Unit Holder switches from one (1) fund with higher sales charge to another fund with a lower sales charge, the Unit Holder will switch at the NAV per unit of the another fund.


COOLING-OFF RIGHT




Corporations/institutions, staff of the Manager and persons registered to deal in unit trust

funds of the Manager are not entitled.

DEEDS OF THE FUNDS

Master Deed dated 29 August 2007

Supplemental Master Deed dated 29 November 2007







Deed dated 29 August 2006

First Supplemental Deed dated 15 May 2013

Second Supplemental Deed dated 25 July 2014

Third Supplemental Deed dated 16 February 2015

Deed dated 4 July 2007

First Supplemental Deed dated 15 May 2013

Second Supplemental Deed dated 25 July 2014

Third Supplemental Deed dated 16 February 2015


44


(KIMMF) Kenanga Money Market Fund

(KMMF)

TRANSACTION DETAILS

RM1,000* or such other lower amount as the Manager in its sole discretion allows.










MAXIMUM INVESTMENTS


MINIMUM REDEMPTION





Holder’s account.


No limits

MINIMUM HOLDINGS




Redemption proceeds will be paid on the next Business Day if the repurchase request is received by the Manager before 11a.m. on any Business Day. Any repurchase request

received after 11a.m. on any Business Day will be deemed received by the Manager on the following Business Day.

Note: Deemed received, is when the fax copy of the transaction form for redemption request is received at the Manager’s Head Office or the Manager’s branches.

TRANSFER OF UNITS




SWITCHING OPTION


In executing his/her transaction, the Unit Holder must ensure that he/she maintain a minimum of 500 Units in his/her account with the respective Funds if he/she intends to stay invested with the Funds. In the event a switching request leaves a Unit Holder with less than 500 Units (Minimum Holdings), the Manager will automatically switch the balance of the Units held in the Unit Holder’s account into the fund selected by the Unit Holder. The minimum number of Units for each switching transaction is 500 Units. Switching is treated as a withdrawal from one (1) fund and an investment into another fund.


45


(KIMMF) Kenanga Money Market Fund

(KMMF)

A Unit Holder switching from a fund with a lower sales charge, to a fund with a higher sales charge will pay the difference in sales charge between the sales charge of these two (2) funds. If a Unit Holder switches from one (1) fund with higher sales charge to another fund with a lower sales charge, the Unit Holder will switch at the NAV per unit of the another fund.


COOLING-OFF RIGHT




Corporations/institutions, staff of the Manager and persons registered to deal in unit trust

funds of the Manager are not entitled.

DEEDS OF THE FUNDS

Master Deed dated 29 August 2007

Supplemental Master Deed dated 29 November 2007








46

Kenanga OneAnswerTM

FUND

Kenanga Blue Chip Fund (KBCF)


(KGOF)


(KSGOF)

TRANSACTION DETAILS


an investor)









MAXIMUM INVESTMENTS


MINIMUM REDEMPTION





Holder’s account.


No limits

MINIMUM HOLDINGS






TRANSFER OF UNITS




SWITCHING OPTION

In executing his/her transaction, the Unit Holder must ensure that he/she maintain a minimum of 500 Units in his/her account with the respective Funds if he/she intends to stay invested with the Funds. In the event a switching request leaves a Unit Holder with less than 500 Units


47

Kenanga OneAnswerTM

FUND



(KGOF)


(KSGOF)


(Minimum Holdings), the Manager will automatically switch the balance of the Units held in the Unit Holder’s account into the fund selected by the Unit Holder. The minimum number of Units for each switching transaction is 500 Units. Switching is treated as a withdrawal from one (1) fund and an investment into another fund. A Unit Holder switching from a fund with a lower sales charge, to a fund with a higher sales charge will pay the difference in sales charge between the sales charge of these two (2) funds. If a Unit Holder switches from one (1) fund with higher sales charge to another fund with a lower sales charge, the Unit Holder will switch at the NAV per unit of the another fund.



COOLING-OFF RIGHT






DEEDS OF THE FUNDS


Supplementary Deed dated 5 October 2005

Second Supplementary Deed dated 10 April 2007

Third Supplementary Deed dated 1 November 2007

Fourth Supplementary Deed dated 3 April 2008

Fifth Supplementary Deed dated 23 September 2009

Sixth Supplementary Deed dated 11 August 2010

Seventh Supplemental Deed dated 15 May 2013

Eighth Supplemental Deed dated 25 July 2014

Ninth Supplemental Deed dated 16 February 2015


48

Kenanga OneAnswerTM

FUND



(KMGF)


TRANSACTION DETAILS


an investor)









MAXIMUM INVESTMENTS


MINIMUM REDEMPTION





Holder’s account.


No limits

MINIMUM HOLDINGS






TRANSFER OF UNITS




SWITCHING OPTION

In executing his/her transaction, the Unit Holder must ensure that he/she maintain a minimum of 500 Units in his/her account with the respective Funds if he/she intends to stay invested with the Funds. In the event a switching request leaves a Unit Holder with less than 500 Units


49

Kenanga OneAnswerTM

FUND



(KMGF)



(Minimum Holdings), the Manager will automatically switch the balance of the Units held in the Unit Holder’s account into the fund selected by the Unit Holder. The minimum number of Units for each switching transaction is 500 Units. Switching is treated as a withdrawal from one (1) fund and an investment into another fund. A Unit Holder switching from a fund with a lower sales charge, to a fund with a higher sales charge will pay the difference in sales charge between the sales charge of these two (2) funds. If a Unit Holder switches from one (1) fund with higher sales charge to another fund with a lower sales charge, the Unit Holder will switch at the NAV per unit of the another fund.



COOLING-OFF RIGHT






DEEDS OF THE FUNDS












50

Kenanga OneAnswerTM

FUND


(KSBF)



TRANSACTION DETAILS


an investor)









MAXIMUM INVESTMENTS


MINIMUM REDEMPTION





Holder’s account.


No limits

MINIMUM HOLDINGS






TRANSFER OF UNITS





51

Kenanga OneAnswerTM

FUND


(KSBF)



SWITCHING OPTION Please refer to page: 198

In executing his/her transaction, the Unit Holder must ensure that he/she maintain a minimum of 500 Units in his/her account with the respective Funds if he/she intends to stay invested with the Funds. In the event a switching request leaves a Unit Holder with less than 500 Units (Minimum Holdings), the Manager will automatically switch the balance of the Units held in the Unit Holder’s account into the fund selected by the Unit Holder. The minimum number of Units for each switching transaction is 500 Units. Switching is treated as a withdrawal from one (1) fund and an investment into another fund. A Unit Holder switching from a fund with a lower sales charge, to a fund with a higher sales charge will pay the difference in sales charge between the sales charge of these two (2) funds. If a Unit Holder switches from one (1) fund with higher sales charge to another fund with a lower sales charge, the Unit Holder will switch at the NAV per unit of the another fund.



COOLING-OFF RIGHT






DEEDS OF THE FUNDS











EPF Approved Funds Under the EPF Members’ Investment Scheme, investors are able to invest in the EPF approved funds which include:

1. Kenanga Premier Fund 2. Kenanga Growth Fund 3. Kenanga Islamic Fund 4. Kenanga Syariah Growth Fund 5. Kenanga Balanced Fund 6. Kenanga Islamic Balanced Fund 7. Kenanga Ekuiti Islam Fund 8. Kenanga Islamic Money Market Fund 9. Kenanga Cash Plus Fund 10. Kenanga Growth Opportunities Fund 11. Kenanga Shariah Growth Opportunities Fund 12. Kenanga Diversified Fund 13. Kenanga Managed Growth Fund


52

FURTHER INFORMATION IN RELATION TO KSGF, KIF, KIBF, KIMMF, KIECF, KSGOF, KEIF, KSBF and KBIF

EXTERNAL FUND MANAGER

Kenanga Islamic Investors Berhad

FURTHER INFORMATION IN RELATION TO KIF, KSGF, KIBF, KIMMF, KIECF, KSGOF, KEIF, KSBF and KBIF

SHARIAH ADVISER

IBFIM

Unit prices and distributions payable, if any, may go down as well as up. Prospective Unit Holders should read and understand the contents of the Master Prospectus and, if necessary, should consult their adviser(s). Past performance of the Funds is not an indication of its future performance.

For information concerning certain risk factors which should be considered by prospective investors, see “Risk Factors” commencing on page 53. Investors who intend to finance an investment in a Shariah-compliant fund, or for that matter any Shariah-compliant investment, are advised to seek for Islamic financing to finance their investment.


53

5. RISK FACTORS General Risks

Whilst the Manager believes that the investment policy will be effective and that investment in unit trust funds may be rewarding, investors should be aware that there are risks associated with their investment in unit trust funds. a) Market Risk

Any purchase of securities will involve an element of risk. A unit trust fund that principally invests in listed stocks will be prone to the fluctuation in the performance of the stock markets, caused by changing market conditions as a result of global, regional or national economic conditions, political developments, governmental policies and social environment which will in turn affect the price of the units.

b) Particular Stock Risk

Where a unit trust fund has investments in stocks, any large fluctuations in the value of a particular stock may cause the price of the units to move as well. This impact may however be mitigated by investing in a wide portfolio of investments, thus spreading the element of risk.

c) Management Company Risk

The performance of the unit trust fund depends on, amongst other things, the expertise of the management company. Poor management of the fund will jeopardise the investment of unit holders through loss of capital gains of the fund. Poor management may also lead to losses to unit holders.

d) Liquidity Risk

This refers to the risk that the securities invested in cannot be readily sold and converted into cash without incurring significant loss in value. This may arise when the trading volume is low and/or where there is a lack of demand for the security. If a unit trust fund has a large portfolio of stocks issued by smaller companies, the relatively illiquidity of these stocks can cause the value of the fund to drop. This is because there are generally less ready buyers of such stocks compared with the stocks of larger and more established companies.

e) Credit Risk

Credit risk or default risk refers to the possibility of deterioration of a fixed income securities /sukuk’s credit quality. The credit quality of a fixed income securities/sukuk represents the ability of the issuer to make timely interest/profit and/or principal repayments/payment in relation to the fixed income securities/sukuk. This is often reflected in the credit rating assigned by qualified credit rating agencies. Credit risk also refers to the possibility of the issuer or financial institution of securities, instruments or deposit placements will not be able to make timely payments of interest / profit or principal payment on the maturity date. This may lead to a default in the payment of interest/profit or principal payment and ultimately may lead to a reduction in the value of the funds.

f) Interest Rate Risk

The risk refers to the effect of interest rate changes on the valuation of a fixed income securities/sukuk portfolio. In the event of rising interest rates, prices of fixed income securities/valuation for sukuk will decrease and vice versa. Meanwhile, fixed income securities/sukuk with longer maturity and lower coupon/profit rates are more sensitive to interest rate changes.

As for Shariah-compliant funds, the interest rate is a general indicator that will have an impact on the management of funds regardless of whether it is a Shariah-compliant fund or otherwise. It does not in any way suggest that these funds will invest in conventional financial instruments.

g) Inflation Risk

A unit trust fund is subject to the risk of an investor’s investment not growing proportionately to the inflation rate, thereby decreasing the investor’s purchasing power even though the investment in monetary terms may have increased.

h) Non-Compliance Risk

This refers to the current and prospective risk to the unit trust fund and the investors’ interest arising from non-compliance of regulations imposed by the Act and the Guidelines, deeds, prospectuses and/or manager’s internal policies and procedures by the manager. Risk of non-compliance can lead to diminished reputation, reduced franchise value, limited business opportunities and reduced expansion potential for the company. Accordingly, non-compliance may affect the investor’s investments by causing a fall in the value of the unit trust fund.

i) Reclassification of Shariah Status Risk

The risk that the currently held Shariah-compliant equities in the portfolio of Shariah-compliant funds may be reclassified as Shariah non-compliant in the periodic review of the equities by the SACSC, the Funds’


54

Shariah adviser or the Shariah boards of the relevant Islamic indices. If this occurs, the manager will take the necessary steps to dispose of such equities.

j) Currency Risk

Where a unit trust fund is invested in foreign currency or assets denominated in a foreign currency, the fund may be exposed to currency fluctuation risks as well as changes in foreign exchange regulations. There is a risk of potential price fluctuations in the value of foreign securities because of changing current exchange rates. If this occurs, there is a possibility that the unit price of the fund may be adversely affected.

k) Country Risk

Investments may be affected by the political and economic conditions of the country in which the investments are made. There is a risk of price fluctuations in foreign securities because of political, financial and economic events in foreign countries. If this occurs, there is a possibility that the unit price of the fund may be adversely affected.

l) Loan Financing Risk

The returns for unit trusts cannot be guaranteed and as such, we do not recommend that you obtain a loan to finance your investment. However, if you choose to do so, you need to understand that:

borrowing increases the possibility of losses as well as gains;

if the value of your investment falls below a certain level, you may be asked by the financial institution to reduce the outstanding loan to the required level; and

the investors’ ability to pay loan installments may be affected by unforeseen circumstances in the future such as loss of employment.

Shariah-compliant unit trust fund’s investors are advised to seek for Islamic financing to finance their investment.

Measures to Check Risks

As some of the risks involved are inherent and may not be within the direct control of the Manager, it is not possible to completely hedge all risks. The Manager will take prudent and reasonable steps to anticipate foreseeable risks and to mitigate potential loss to Unit Holders. Such steps would include:

Economic Intelligence A network of research and information providers can give advance foresight on global and domestic developments, which can give impact on investments. Such information will give the fund manager lead-time in restructuring the portfolio, if required.

Fundamentally Focused Investments

While the Manager cannot foresee unfortunate events, which can impact our market overnight, the Manager can mitigate this risk by investing in stocks with fundamentals. This will ensure a more stable portfolio focusing on longer term consistent returns rather than speculative issues.

Research Driven Instruments

The fund manager will conduct regular visits to companies invested in to ensure expectations are at least maintained. Any deviation from prior expectation will enable the fund manager to respond accordingly.

Specific Risks Risks related to KPF

Market Risk Any purchase of securities will involve an element of risk. The Fund that principally invests

in listed stocks will be prone to the fluctuation in the performance of the stock markets, caused by changing market conditions as a result of global, regional or national economic conditions, political developments, governmental policies and social environment which will in turn affect the price of the Units.


Any large fluctuations in the value of a particular stock may cause the price of the Units to move as well.

Currency Risk The Fund may be exposed to currency fluctuation risk as well as changes in foreign exchange regulations as the Fund may be invested in foreign currency or assets denominated in a foreign currency. There is a risk of potential price fluctuations in the value of foreign assets because of changing current exchange rates. If this occurs there is a possibility that the Unit price of the Fund may be adversely affected.


55

Country Risk Investments may be affected by the political and economic conditions of the country in which the investments are made. There is a risk of price fluctuations in foreign securities resulting from political, financial and economic events in foreign countries. If this occurs there is a possibility that the Unit price of the Fund may be adversely affected.

Risks related to KGF

Market Risk Any purchase of securities will involve an element of risk. The Fund that principally invests in listed stocks will be prone to the fluctuation in the performance of the stock markets, caused by changing market conditions as a result of global, regional or national economic conditions, political developments, governmental policies and social environment which will in turn affect the price of the Units. Market risk is mitigated through the Manager’s dynamic asset allocation strategy between equities and cash for the Fund. If the Manager is of the opinion that the market is particularly bearish at any point in time, the Fund may increase its exposure to cash in order to preserve capital*. * Note: the Fund is not a capital guaranteed or a capital protected fund.


Any large fluctuations in the value of a particular stock may cause the price of the Units to move as well. Particular stock risk is managed by ensuring the Fund is well diversified across various stocks.

Risks related to KIF

Market Risk Any purchase of Shariah-compliant securities will involve an element of risk. The Fund

that principally invests in listed Shariah-compliant stocks will be prone to the fluctuation in the performance of the stock markets, caused by changing market conditions as a result of global, regional or national economic conditions, political developments, governmental policies and social environment which will in turn affect the price of the Units.


Any large fluctuations in the value of a particular Shariah-compliant stock may cause the price of the Units to move as well.


The risk that the currently held Shariah-compliant equities in the portfolio of Shariah-compliant Fund may be reclassified as Shariah non-compliant in the periodic review of the equities by the SACSC, the Fund’s Shariah adviser or the Shariah boards of the relevant Islamic indices. If this occurs, the Manager will take the necessary steps to dispose of such equities.

Currency Risk The Fund may be exposed to currency fluctuation risks as well as changes in foreign exchange regulations as the Fund may be invested in foreign currency or assets denominated in a foreign currency. There is a risk of potential price fluctuations in the value of foreign assets because of changing current exchange rates. If this occurs there is a possibility that the Unit price of the Fund may be adversely affected.

Country Risk Investments may be affected by the political and economic conditions of the country in which the investments are made. There is a risk of price fluctuations in foreign Shariah-compliant securities resulting from political, financial and economic events in foreign countries. If this occurs there is a possibility that the Unit price of the Fund may be adversely affected.

Risks related to KSGF

Market Risk Any purchase of Shariah-compliant securities will involve an element of risk. The Fund that principally invests in listed Shariah-compliant stocks will be prone to the fluctuation in the performance of the stock markets, caused by changing market conditions as a result of global, regional or national economic conditions, political developments, governmental policies and social environment which will in turn affect the price of the Units. Market risk is mitigated through the Manager’s dynamic asset allocation strategy between Shariah-compliant equities and cash for the Fund. If the Manager is of the


56

opinion that the market is particularly bearish at any point in time, the Fund may increase its exposure to cash in order to preserve capital*. * Note: the Fund is not a capital guaranteed or a capital protected fund.


Any large fluctuations in the value of a particular stock may cause the price of the Units to move as well. Particular stock risk is managed by ensuring the Fund is well diversified across various Shariah-compliant stocks.


The risk that the currently held Shariah-compliant equities in the portfolio of Shariah-compliant Fund may be reclassified as Shariah non-compliant in the periodic review of the equities by the SACSC, the Fund’s Shariah adviser or the Shariah boards of the relevant indices. If this occurs, the Manager will take the necessary steps to dispose of such equities.

Risk related to KAPTRF

Equity Risk As the main investments of the Fund will be in equities and equity related securities,

the Fund will be affected by equity risk. Generally, equity risk may arise in the following forms, i.e., equity risks related to external factors and equity risks related to company-specific factors. All of these related equity risks can adversely affect the prices of equities, which would negatively impact the performance of the Fund. Equity risks related to external factors include economic, political or general market factors which impact equities generally. For example, adverse political developments may cause the economy of the country in which the Fund invests in to become unstable, which in turn affects the profitability of a company that operates in that country due to weakening of the economy. Equity risks related to company-specific factors include how the companies in which the Fund invests are managed; the performance of any given company depends on the quality of its management. A company that has a competent management with the necessary experience and skill sets will contribute to the effectiveness of the operations of the company as indicated by such metrics as revenue growth and profitability. Company specific factors also include how the company is doing relative to its competitors or other companies in its industry or related industries. These types of equity risks can work individually or in combination to negatively affect the value of equities held by the Fund.

Warrant Risk The price, performance and liquidity of warrants are typically linked to the underlying stock. However, the price and performance of such warrants will generally fluctuate more than the underlying stock because of the greater volatility of the warrants market.

Currency Risk This risk is associated with investments denominated in currencies different from the base currency of the Fund. As the Fund is denominated in Malaysian Ringgit, investments in countries other than Malaysia will cause the Fund to be exposed to currency risks. When foreign currencies move unfavourably against Malaysian Ringgit, these investments may face currency loss in addition to any capital gains or losses, which will affect the NAV of the Fund, and consequently the price per Unit of the Fund. The Manager may mitigate this risk by hedging the foreign currency exposure.

Country Risk The Fund may be affected by risks specific to the countries in which it invests. Such risks may be caused by but not limited to changes in the country’s economic fundamentals, social and political stability, currency movements and foreign investment policies. These factors may have an impact on the prices of the Fund’s investment in that country and consequently may also affect the Fund’s NAV.

Market Risk Please refer to the market risk write-up set out in Chapter 5 (a) above.

Liquidity Risk Liquidity risk refers to the ease of liquidating an investment at or close to its fair value and is dependent on the investment’s volume traded in the market. Generally, investments in securities of smaller companies or in smaller markets may expose the


57

Fund to greater liquidity risk due to smaller trading volumes as there may be smaller amounts of such securities being issued and traded in the said market. If the Fund holds many securities that are illiquid, or difficult to dispose of, the value of the Fund may be affected when it has to sell such securities at a discount or a loss, relative to the fair value of such securities. This in turn will depress the value of the Fund. This risk may be mitigated through a systematic security selection process, a systematic sell discipline and portfolio diversification.

Settlement Risk As the Fund may invest in different countries, the securities markets of certain countries may lack efficiency and regulatory controls. The investments of the Fund in certain countries may be adversely affected by delays in, or refusal to grant relevant approvals for the repatriation of funds which may affect the process of settlement of transactions.

Risks related to KBF

Market Risk Any purchase of securities will involve an element of risk. The Fund that principally invests

in listed stocks will be prone to the fluctuation in the performance of the stock markets, caused by changing market conditions as a result of global, regional or national economic conditions, political developments, governmental policies and social environment which will in turn affect the price of the Units.


Any large fluctuations in the value of a particular stock may cause the price of the Units to move as well.

Credit Risk Credit risk or default risk refers to the possibility of deterioration of a fixed income instrument’s credit quality, which will negatively affect the market value of the instrument. The credit quality of a bond represents the ability of the issuer to make timely interest and/or principal repayments in relation to the bond. This is often reflected in the credit rating assigned by qualified credit rating agencies.

Interest Rate Risk The 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 rates are more sensitive to interest rate changes.


Country Risk Investments may be affected by the political and economic conditions of the country in which the investments are made. There is a risk of price fluctuations in foreign securities resulting from political, financial and economic events in foreign countries. If this occurs there is a possibility that the Unit price of the Fund may be adversely affected.

Risks related to KIBF

Market Risk Any purchase of Shariah-compliant securities will involve an element of risk. The Fund

that principally invests in listed Shariah-compliant stocks will be prone to the fluctuation in the performance of the stock markets, caused by changing market conditions as a result of global, regional or national economic conditions, political developments, governmental policies and social environment which will in turn affect the price of the Units.


Any large fluctuations in the value of a particular Shariah-compliant stock may cause the price of the Units to move as well.

Credit Risk Credit risk or default risk refers to the possibility of deterioration of a sukuk/Shariah-compliant instrument’s credit quality. The credit quality of a sukuk/Shariah-compliant instruments represents the ability of the issuer to make timely profit payments and/or principal payments in relation to the sukuk/Shariah-compliant instruments. This is often reflected in the credit rating assigned by qualified credit rating agencies.

Interest Rate Risk The risk refers to the effect of interest rate changes on the valuation of a sukuk portfolio. In the event of rising interest rates, valuation for sukuk will decrease and vice versa.


58

Meanwhile, sukuk with longer maturity and lower profit rates are more sensitive to interest rate changes. As for KIBF, the interest rate is a general indicator that will have an impact on the management of funds regardless of whether it is a Shariah-compliant fund or otherwise. It does not in any way suggest that this Fund will invest in conventional financial instruments. All the investments carried out for this Fund are in accordance with requirements of the Shariah.


The risk that the currently held Shariah-compliant equities in the portfolio of Shariah-compliant Fund may be reclassified as Shariah non-compliant in the periodic review of the equities by the SACSC, the Fund’s Shariah adviser or the Shariah boards of the relevant Islamic indices. If this occurs, the Manager will take the necessary steps to dispose of such equities.


Country Risk Investments may be affected by the political and economic conditions of the country in which the investments are made. There is a risk of price fluctuations in foreign Shariah-compliant securities resulting from political, financial and economic events in foreign countries. If this occurs there is a possibility that the Unit price of the Fund may be adversely affected.

Risks related to KBNF

Market Risk

Investments into fixed income instruments may involve market risk. The Fund that principally invests in these instruments which are prone to price fluctuation of the prevailing instruments, which may be caused by changing market conditions as a result of global, regional or local economic conditions, political developments, governmental policies and social environment. Market risk of the Fund is mitigated through the Manager’s dynamic asset allocation strategy between fixed income instruments and cash for the Fund. If the Manager is of the opinion that the market is particularly bearish at any point in time, the Fund may increase its exposure to cash in order to preserve capital*. * Note: the Fund is not a capital guaranteed or a capital protected fund.


Interest Rate Risk The 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 rates are more sensitive to interest rate changes.

Risks related to KMIF

Market Risk Any purchase of securities will involve an element of risk. The Fund that principally

invests in listed stocks will be prone to the fluctuation in the performance of the stock markets, caused by changing market conditions as a result of global, regional or national economic conditions, political developments, governmental policies and social environment which will in turn affect the price of the Units.

Particular Stock Risk Any large fluctuations in the value of a particular stock may cause the price of the Units to

move as well.


59

Risks related to KIMMF

Market Risk

Investments into sukuk/Shariah-compliant instruments may involve market risk. The Fund that principally invests in these instruments which are prone to price fluctuation of the prevailing instruments, which may be caused by changing market conditions as a result of global, regional or local economic conditions, political developments, governmental policies and social environment. Market risk of the Fund is mitigated through the Manager’s dynamic asset allocation strategy between sukuk/Shariah-compliant instruments and cash for the Fund. If the Manager is of the opinion that the market is particularly bearish at any point in time, the Fund may increase its exposure to cash in order to preserve capital*. * Note: the Fund is not a capital guaranteed or a capital protected fund.

Credit Risk Credit risk or default risk refers to the possibility of deterioration of a sukuk/Shariah-compliant instrument’s credit quality. The credit quality of a sukuk/Shariah-compliant instruments represents the ability of the issuer to make timely profit payments and/or principal payments in relation to the sukuk/Shariah-compliant instruments. This is often reflected in the credit rating assigned by qualified credit rating agencies.

Interest Rate Risk The risk refers to the effect of interest rate changes on the valuation of a sukuk portfolio. In the event of rising interest rates, valuation for sukuk will decrease and vice versa. Meanwhile, sukuk with longer maturity and lower profit rates are more sensitive to interest rate changes. As for KIMMF, the interest rate is a general indicator that will have an impact on the management of funds regardless of whether it is a Shariah-compliant fund or otherwise. It does not in any way suggest that this Fund will invest in conventional financial instruments. All the investments carried out for this Fund are in accordance with requirements of the Shariah.

Reinvestment Risk This is a risk that future proceeds (profit and/or capital) are reinvested at a lower potential profit rate.

Risks related to KMMF

Market Risk

Investments into bonds/fixed income instruments may involve market risk. The Fund that principally invests in these instruments which are prone to price fluctuation of the prevailing instruments, which may be caused by changing market conditions as a result of global, regional or local economic conditions, political developments, governmental policies and social environment. Market risk of the Fund is mitigated through the Manager’s dynamic asset allocation strategies between fixed income instruments and cash for the Fund. If the Manager is of the opinion that the market is particularly bearish at any point in time, the Fund may increase its exposure to cash in order to preserve capital*. * Note: the Fund is not a capital guaranteed or a capital protected fund.


Interest Rate Risk The risk refers to the effect of interest rate changes on the performance 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 rates are more sensitive to interest rate changes.

Reinvestment Risk This is a risk that future proceeds (interest and/or capital) are reinvested at a lower potential interest rate.


60

Risks related to KCPF, KIECF, KIPF and KBIF

Market Risk The market price of securities owned by a Fund might go down or up, sometimes

rapidly or unpredictably. Securities may decline in value due to factors affecting securities markets generally or particular industries represented in the securities markets. Equity securities generally have greater price volatility than fixed income securities/sukuk.

Interest Rate Risk This risk refers to the effect of interest rate changes on the market value of a bond/sukuk portfolio. In the event of rising interest rates, prices of fixed income securities/demand for sukuk will decrease and vice versa. Meanwhile, bonds/sukuk with longer maturity and lower coupon/profit rate are more sensitive to interest changes. The risk will be mitigated via the management of the duration structure of the fixed income/sukuk portfolio. As for Shariah-compliant Funds, interest rate will have an impact on the management of the Funds regardless of whether they are Shariah-compliant unit trust funds or otherwise. This does not in any way suggest that the Shariah-compliant Funds will invest in conventional financial instruments. All the investments carried out for the Shariah-compliant Funds are in accordance with Shariah requirements.

Credit/ Default Risk The Fund could lose money if the issuer or guarantor of a fixed income security/sukuk, or the counterparty to a derivatives contract, redemption agreement or a loan of portfolio securities, is unable or unwilling to make timely principal and/or interest/profit payments, or to otherwise honour its obligations. Securities are subject to varying degrees of credit/default risk, which are often reflected in credit ratings.

Reinvestment Risk Reinvestment risk arises when an issuer of bonds/sukuk decides to exercise its right to pay principal on an obligation earlier than the expected maturity date, especially during times of declining interest rates. Consequently, a Fund may experience lower returns due to having to reinvest in lower yielding securities.

Liquidity Risk Liquidity risks exist when particular investments are difficult to purchase or sell, possibly preventing a Fund from selling such illiquid securities at an advantageous time or price. Funds with principal investment strategies that involve foreign securities, derivatives or securities with substantial market and/or credit/default risk tend to have the greatest exposure to liquidity risks.

Counterparty Risk Counterparty risk occurs when a financial institution that has entered into a securities trade defaults on its obligations under the agreement. A Fund may encounter Unit price volatility due to this risk arising.

Risks related to KBCF, KGOF, KSGOF* and KEIF*



Stock-specific Risk The value of each individual stock that a Fund invests in may decline for a number of reasons which is directly related to the issuer, such as, the management performance, financial position and reduced demand for the issuer’s goods or services.



The Funds may from time to time use derivatives for hedging. Derivatives are financial contracts whose value depend on, or are derived from, the value of an underlying asset, reference rate or index. Such assets may include shares, interest rates, currency exchange rates and stock indices. Some of the risks associated with derivatives are market risk, management risk, credit risk, liquidity risk and counterparty risk.


61

Reclassification of Shariah Status Risk*

The risk that the currently held Shariah-compliant equities in the portfolio of Shariah-compliant Funds may be reclassified as Shariah non-compliant in the periodic review of the equities by the SACSC, the Funds’ Shariah adviser or the Shariah boards of the relevant Islamic indices. If this occurs, we will take the necessary steps to dispose of such equities.

Risks related to KMGF, KDF and KSBF*



Interest Rate Risk This risk refers to the effect of interest rate changes on the market value of a bond/sukuk portfolio. In the event of rising interest rates, prices of fixed income securities/demand for sukuk will decrease and vice versa. Meanwhile, bonds/sukuk with longer maturity and lower coupon/profit rate are more sensitive to interest changes. The risk will be mitigated via the management of the duration structure of the fixed income/sukuk portfolio. As for Shariah-compliant Funds, interest rate will have an impact on the management of the Funds regardless of whether they are Shariah-compliant unit trust funds or otherwise. This does not in any way suggest that the Shariah-compliant Funds will invest in conventional financial instruments. All the investments carried out for the Shariah-compliant Funds are in accordance with Shariah requirements.

Credit/ Default Risk A Fund could lose money if the issuer or guarantor of a fixed income security/sukuk, or the counterparty to a derivatives contract, redemption agreement or a loan of portfolio securities, is unable or unwilling to make timely principal and/or interest/profit payments, or to otherwise honour its obligations. Securities are subject to varying degrees of credit/default risk, which are often reflected in credit ratings.

Reinvestment Risk Reinvestment risk arises when an issuer of bonds/sukuk decides to exercise its right to pay principal on an obligation earlier than the expected maturity date, especially during times of declining interest rates. Consequently, a Fund may experience lower returns due to having to reinvest in lower yielding securities.


Counterparty Risk Counterparty risk occurs when a financial institution that has entered into a securities trade defaults on its obligations under the agreement. A Fund may encounter Unit price volatility due to this risk arising.

Stock-specific Risk The value of each individual stock that a Fund invests in may decline for a number of reasons which is directly related to the issuer, such as, the management performance, financial position and reduced demand for the issuer’s goods or services.


The Funds may from time to time use derivatives for hedging. Derivatives are financial contracts whose value depend on, or are derived from, the value of an underlying asset, reference rate or index. Such assets may include shares, interest rates, currency exchange rates and stock indices. Some of the risks associated with derivatives are market risk, management risk, credit risk, liquidity risk and counterparty risk.

Reclassification of Shariah Status Risk*

The risk that the currently held Shariah-compliant equities in the portfolio of Shariah-compliant Fund may be reclassified as Shariah non-compliant in the periodic review of the equities by the SACSC, the Funds’ Shariah adviser or the Shariah boards of the relevant Islamic indices. If this occurs, we will take the necessary steps to dispose of such equities.


62

6. INFORMATION ON THE FUNDS Kenanga Premier Fund (KPF)

Type of Fund : Growth

Category of Fund : Equity

Objective of KPF

The investment objective of KPF is to provide consistent annual returns and medium to long-term capital appreciation. Any material changes to the investment objective of the Fund would require the Unit Holders’ approval. Investors’ Profile

KPF is suitable for investors who are willing to accept moderate to high risk in order to achieve a reasonable return on their capital over the medium to long-term period ranging from three (3) to five (5) years. This enables the investors to withstand extended periods of market highs and lows in the pursuit of capital growth with KPF. Specific Benefit of KPF

Potentially Higher Returns

KPF is generally volatile in nature due to its high investment in equity and equity-related securities (maximum 98% of the NAV) and thus investors may enjoy potentially higher returns (if any) than other types of funds (e.g. balanced funds and/or fixed income funds) during an upward market trend.

Principal Investment Strategies

KPF seeks to maximise total returns by providing investors with a combination of capital appreciation and income distribution, if any, while reducing risk through diversified investments mainly in equities which are broadly summarised as follows:

1. to invest in any combination of equity and equity-related securities; 2. to invest in securities which are readily marketable, although a proportion of the Fund may consist of

investments in equities of smaller quoted companies; and 3. to invest in futures market for hedging purposes only.

In selecting investments, emphasis is placed on prospects for significant growth in the long-term and in particular, companies which have strong fundamentals and sound management.

Accordingly, the indicative asset allocation of KPF will be as follows:

70% - 98% of the Fund’s NAV - Equities Minimum 2% of the Fund’s NAV - Liquid assets

Investment

Method Types and

Characteristics Of Instruments/Risks

Involved

Asset Allocation Strategy

Risk Management Strategies

Temporary Defensive Measures

The Fund is managed on an

active bottom- up growth strategy,

and adopts a moderate trading

strategy in line with the Fund’s objective.

The Fund invests in growth stocks

irrespective of market capitalisation, however,

smaller market capitalised companies may run higher liquidity

risk than normal.

Asset allocation is actively managed to commensurate with expected risk/reward ratio for the market.

The minimum percentage of investment in

equities is at least 70% of the NAV at

anytime.

We use active asset allocation and stock volatility to control

risk.

On country risk, country allocations are driven by our stock selection process and we

constantly monitor country allocations to ensure that we

are only taking

These can be undertaken upon consultation with the investment

committee and can include high level of cash and/or fixed

income instruments over equities.

The cash will be place-out into short-term money market instruments and/or


63

Investment Method

Types and Characteristics Of Instruments/Risks

Involved




measured bets away from the benchmark.

On currency risk, generally, we do not hedge the currency risks. However, we

may take into account and may hedge to reduce

such risks by investing in foreign currency futures contracts, swaps,

futures or any combination of such

instruments.

deposits.

Performance benchmark

FTSE-Bursa Malaysia 100 Index source from www.bursamalaysia.com.

THE REMAINDER OF THE PAGE IS INTENTIONALLY LEFT BLANK


64




Objective of KGF

The primary objective of the Fund is to provide Unit Holders with long-term capital growth.

Any changes to the investment objective of the Fund would require Unit Holders’ approval. Investors’ Profile

KGF is suitable for investors who:

have a long-term investment time horizon of more than five (5) years; and

have a moderate risk profile with tolerance for short-term periods of volatility. Specific Benefit of KGF

KGF is managed to reduce the volatility level below the market while seeking to achieve a return comparable to the market over the full market/business cycle. Principal Investment Strategies

The Fund’s assets are actively invested in a diversified portfolio of Malaysian equity and equity-related securities of companies with sustainable business model that is trading at a discount to its intrinsic value. While the Fund does not actively practice asset allocation but seeks to fill the portfolio up with securities, under extreme market volatility and/or when market is trading at valuation deem unsustainable, the Fund will judiciously scale back its equity exposure. Under normal market conditions, the Fund’s equity exposure is expected to range from 75% to 95% of the Fund’s NAV with the balance in money market instruments, fixed deposits and/or cash. Accordingly, the indicative asset allocation of KGF will be as follows:

75% to 95% of the Fund’s NAV - Equities 5% to 25% of the Fund’s NAV - Liquid assets

Investment Method


Involved




The Fund is built up on a stock by stock

basis.

The Fund invests in the equity and equity-related securities of

companies with sustainable business

model and trading at a discount to their

intrinsic value. The Fund is style neutral

and does not differentiate between

growth or value stocks, small-cap, mid-cap or

big-cap.

The Fund does not actively practice

asset allocation but seek to fill the

portfolio up with companies that satisfy the twin

criteria of sustainable

business model and trading at discount to its intrinsic value.

Risk management is central to the

investment process of the Fund. The

portfolio is continuously

subjected to two risk management

overlays and a rigid sell discipline. The

first overlay is a series of investment limits check, while the second overlay is a statistical check on the volatility of

the portfolio to ensure that it is

below the market level.

In times of extreme market volatility and/

or when market valuation is at a level deem unsustainable,

the Fund will judiciously scale back its equity

exposure to below its normal operating

range of 75% to 95% of the Fund’s

NAV.

The cash will be

place-out into short-term money market instruments and/or

deposits.


65


FTSE-Bursa Malaysia Kuala Lumpur Composite Index source from www.bursamalaysia.com.



66



Category of Fund : Equity (Islamic)

KIF is suitable for investors who prefer investing in a portfolio of investments that strictly adhere to requirements of the Shariah and are prepared to accept moderate to high risks in order to achieve medium to long-term capital gain. Objective of KIF

The investment objective of KIF is to achieve steady capital growth and income distribution (incidental) over the medium to long-term period by investing in a diversified portfolio of authorised investments in accordance with accepted Shariah principles. Any material changes to the investment objective of the Fund would require the Unit Holders’ approval. Investors’ Profile

KIF is suitable for investors who want a portfolio of investments that complies with Shariah requirements and at the same time, willing to accept moderate to high risk in order to achieve a reasonable return on their capital over the medium to long-term period ranging from three (3) to five (5) years. This enables the investors to withstand extended periods of market’s highs and lows in the pursuit of capital growth with KIF. The Manager will seek to invest the assets of KIF in high growth and undervalued Shariah-compliant securities, which offer good growth potential with an investment time horizon of between three (3) to five (5) years. Specific Benefits of KIF


KIF is generally volatile in nature due to its high investment in Shariah-compliant securities (maximum 98% of NAV) and thus investors may enjoy potentially higher returns (if any) than other types of funds (e.g. balanced funds and/or fixed income/sukuk funds) during an upward market trend.

Caters to the Needs of Shariah Adherent Investors

KIF provides Shariah-adherent investors as well as all other investors, with an alternative to invest in Shariah-compliant investments


KIF seeks to maximise total returns by providing investors with a combination of capital appreciation and income distribution, if any, while reducing risk through diversified investments in Shariah-compliant equities which are broadly summarised as follows: 1. to invest in any combination of Shariah-compliant equity and equity-related securities; and 2. to invest in Shariah-compliant securities, which are readily marketable, although a proportion of KIF may

consist of investments in Shariah-compliant equities of smaller quoted companies. In selecting investments, emphasis is placed on prospects for significant growth in the long-term and in particular, companies which have strong fundamentals and sound management.

These give opportunities for investors to opt for capital gains and income in accordance with Shariah requirements. The investment committee will work closely with the appointed Shariah adviser to ensure that the investments of the Fund are in compliance with Shariah requirements. Accordingly, the indicative asset allocation of the Fund shall be as follows:

70% - 98% of the NAV - Shariah-compliant equities Minimum 2% of the NAV - Islamic liquid assets


67

Investment Method


Involved




The Fund is managed on an active bottom-up growth strategy,



The Fund invests in growth Shariah-compliant stocks

irrespective of market capitalisation,

however, smaller market capitalised

companies may run higher liquidity risk

than normal.

Asset allocation is actively managed to commensurate with

the expected risk/reward ratio of

the market. The minimum percentage

of investment in Shariah-compliant equities is at least 70% of the NAV at

anytime.

We use active asset allocation and

Shariah-compliant stock volatility to

control risk.


committee and can include high level of cash and/or sukuk

over Shariah-compliant equities.

The cash will be

place-out into Islamic money

market instruments and/or Islamic

deposits.


FTSE-Bursa Malaysia Emas Shariah Index source from www.bursamalaysia.com.



68

Kenanga Syariah Growth Fund (KSGF)


Category of Fund : Equity (Islamic)

Objective of KSGF

The primary objective of the Fund is to provide Unit Holders with long-term capital growth by investing principally in equities that comply with Shariah requirements. Any changes to the investment objective of the Fund would require Unit Holders’ approval. The Fund’s activities are also conducted strictly in accordance with Shariah requirements and are monitored by the Fund’s Shariah adviser. Investors’ Profile

KSGF is suitable for investors who:

have a long-term investment time horizon of more than five (5) years;

have a moderate risk profile with tolerance for short-term periods of volatility; and

have a preference for Shariah compliant investments. Specific Benefits of KSGF

KSGF is managed to reduce the volatility level below the market while seeking to achieve a return comparable to the market over the full market/business cycle. KSGF provides Shariah-adherent investors as well as all other investors, with an alternative to invest in Shariah-compliant investments. Principal Investment Strategies

The Fund’s assets are actively invested in a diversified portfolio of Malaysian Shariah-compliant equity and equity-related securities of companies with sustainable business model and trading at a discount to its intrinsic value. While the Fund does not actively practice asset allocation but seeks to fill the portfolio up with Shariah-compliant securities, under extreme market volatility and/or when market is trading at valuation deem unsustainable, the Fund will judiciously scale back its Shariah-compliant equity exposure. Under normal market conditions, the Fund’s Shariah-compliant equity exposure is expected to range from 75% to 95% of the Fund’s NAV with the balance in Islamic money market instruments, Islamic deposits and/or cash.

Accordingly, the indicative asset allocation of KSGF will be as follows:

75% to 95% of the Fund’s NAV - Shariah-compliant equities 5% to 25% of the Fund’s NAV - Islamic liquid assets

Investment Method


Involved




The Fund is built up on a stock by stock

basis.

The Fund invests in the Shariah-compliant

equity and equity-related securities of

companies with sustainable business

model and trading at a discount to their

intrinsic value. The Fund is style neutral

and does not differentiate between

The Fund does not actively practice asset allocation

but seek to fill the portfolio up with companies that satisfy the twin

criteria of sustainable

business model and trading at discount to its

Risk management is central to the

investment process of the Fund. The

portfolio is continuously

subjected to two risk management

overlays and a rigid sell discipline. The

first overlay is a series of investment

In times of extreme market volatility

and/or when market valuation is at a

level deem unsustainable, the

Fund will judiciously scale back its

Shariah-compliant equity exposure to below its normal

operating range of


69

Investment Method


Involved




growth or value Shariah-compliant

stocks, small-cap, mid-cap or big-cap.

intrinsic value.

limits check, while the second overlay is a statistical check on the volatility of

the portfolio to ensure that it is

below the market level.

75% to 95% of the Fund’s NAV.

The cash will be

place-out into short-term Islamic money market instruments

and/or Islamic deposits.


FTSE-Bursa Malaysia Emas Shariah Index source from www.bursamalaysia.com.



70

Kenanga Asia Pacific Total Return Fund (KAPTRF)



Objective of KAPTRF

The Fund aims to provide capital appreciation over the long-term (over 5 years) by investing in equities and equity related securities of companies in the Asia Pacific region.

Any material change to the Fund’s investment objective would require the Unit Holders’ approval. Investors’ Profile

The Fund is suitable for investors who:

are seeking long-term capital growth on the amount invested;

are willing to accept equity risk to obtain potentially higher returns; and

want to have investments in the Asia Pacific region.

Investment Policy and Process

The Fund seeks to achieve its investment objective by investing in a diversified portfolio of equities and equity related securities of companies in the Asia Pacific region. The countries that the Fund may invest in will include, but are not limited to, Malaysia, Singapore, Indonesia, Thailand, Philippines, India, Hong Kong and China (via the Hong Kong Stock Exchange), Japan, Korea, Taiwan, Australia and Vietnam. The balance of the Fund’s NAV that is not invested in equities and equity related securities will be held in deposits or invested in money market instruments. The Manager will seek to invest in companies which have a sustainable business model and are well managed. A particular company’s representation in the relevant market indices will not be considered by the Manager as the Manager is of the view that it does not necessarily provide a meaningful guidance on the prospects of the said company or its inherent worth. The Manager’s investment process seeks to exploit businesses with sustainable returns on equity (“ROE”)*, which are trading at a significant discount to their intrinsic value. We believe ROE to be a suitable gauge of the success of a business as it provides common shareholders with a sustainable measure of how effectively their investment capital is being employed over a given period of time. Further, we believe ROE is a measure of the four essential components of any business which are, strategy, processes (operational and financial), people and execution capability. *Note: ROE means the amount of net income returned as a percentage of shareholders equity. Return on equity measures a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested. ROE is expressed as a percentage and calculated as: net income / shareholders’ equity = return on equity. The base currency of the Fund is in Malaysian Ringgit and as the Fund’s investments in the countries within the Asia Pacific region will be denominated in different currencies, the Manager intends to employ hedging to reduce the Fund’s exposure to foreign exchange fluctuations. The hedging will be done through derivatives instruments such as foreign exchange forwards. Investment Process Flowchart Schematic

Step 1 Step 2 Step 3 Step 4 Step 5

Step 6

Universe

Idea

Generation &

Screening

Stock Selection Criteria

Industry Verification

Valuation

Portfolio Construction

& Management

stocks stocks stocks stocks

*”Discipline”

"Buy"

"Sell"


71

*Note: “Discipline” in the context in which it is used in this Master Prospectus means the decision to purchase or sell a particular security. Idea Generation and Screening Investment idea sources include industry experts*, stockbroker research, press reports, published industry and corporate reports, trade journals, accumulated experience and personal observations. Stocks are screened with regard to market liquidity and certain predetermined financial ratios. Stock Selection Criteria The Manager believes that sound company fundamentals drive stock prices over time. Accordingly, a stock which has passed the “screening test” will then be subjected to detailed scrutiny which focuses on its business model and value proposition, the quality of its management and earnings, its balance sheet strength, and its cash generating ability.

Industry Verification Test The Manager is of the view that in-depth industry knowledge and business expertise are the key drivers for any company. Accordingly, if a stock passes the “stock selection criteria test”, it will then be subjected to verification by industry experts* who can usually add deep and valuable insights into the Manager’s assumptions with regard to the stocks’ potential. *Note: “industry experts” are people with the relevant industry knowledge or expertise, considered by the Manager to be able to provide critical insights into the industry within which the Manager may seek to invest. For example, people who have known specific skill and experience within an industry and long-term members of trade organizations (relevant to the company which stocks the Manager intends to invest in). Valuation Whilst the Manager seeks to identify and invest in stocks of companies which are expected to generate a reasonable return on equity, and have passed the two tests noted above, the Manager will not invest in stocks of those companies which compromise the Manager’s view on their “true” (or intrinsic) value. The Manager will use its internal valuation techniques (such as “discounted cash flow” and “relative valuation”) to determine the “true” value of the stock. The Manager when using its “buy / sell” discipline, will seek to invest in a stock if it believes that the stock is undervalued. If a particular stock held by the Fund becomes overvalued, the Manager will sell the stock. Portfolio Construction and Management The Manager will construct the Fund’s portfolio based on the prevailing (and changing) levels of risk accumulation and concentration as the Manager seeks to capture targeted returns. The Fund’s portfolio will be built (one stock at a time) and managed with due regard to both “upside” and “downside” risk potential. This approach aims to create a diversification strategy which maximises the Manager’s view on the portfolio’s risk / return potential. Risk Management Portfolio risk management is central to the Manager’s investment process. Portfolio risk management can therefore include the application of policies, procedures and practices which continually seeks to identify, analyse, assess, control and mitigate unacceptable risk as it accumulates and/or concentrates within a portfolio. Accordingly, the portfolio of the Fund is subjected to numerous risk management techniques including stock exposure limits (company, sector, country etc), pre-determined stock liquidity levels and risk budgets, and clear “buy / sell” and “stop loss” disciplines.

Temporary Defensive Positions The Manager may take a temporary defensive position during adverse market conditions. In times of extreme market volatility and/ or when market valuation is at a level considered unsustainable, the Fund will judiciously scale back its equity exposure below its normal operating range of 70% to 99% of the Fund’s NAV. During such times, the Manager will invest in investments which the Manager considers may better preserve the value of the Fund (for example, money market instruments) although not necessarily meeting entirely the growth objective of the Fund. For the avoidance of doubt, please note that this is not a capital guaranteed or capital protected fund.


72

Asset Allocation Asset allocation is dependent on the interaction between the Manager’s investment process and the opportunities presented by markets at any point in time. As an indication, the Manager envisages the normal operating range to be: Equities and equity related securities allocation: • Minimum: 70% of the Fund’s NAV • Maximum: 99% of the Fund’s NAV Deposits and money market instruments allocation: • Minimum: 1% of the Fund’s NAV • Maximum: 30% of the Fund’s NAV Performance Benchmark

The performance benchmark is 10% growth in NAV per annum (compounded*) over the long-term. Please note that this is not a guaranteed return, but a benchmark against which the performance of the Fund may be measured. The Fund may or may not achieve the compounded return* of 10% of the NAV per annum but targets to achieve this growth over the long-term. *The following is a brief explanation on “compounded return”: Compounded return is the rate of return, usually expressed as a percentage that represents the cumulative effect that a series of gains or losses have on an original amount of capital over a period of time. Compound returns are usually expressed in annual terms, meaning that the percentage number that is reported represents the annualized rate at which capital has compounded over time. For example, if an investment fund claims to have produced a 10% annual compound return over the past five years, this means that at the end of its fifth year, the fund's capital has grown to a size equal to what it would be if the funds on hand at the beginning of each year had earned exactly 10% by the end of each year. In other words, suppose you started with an initial investment of RM1,000. If you multiply RM1,000 by 1.1 five times, you will end up with about RM1,611. If an investment of RM1,000 ended up being worth RM1,611 by the end of five years, the investment could be said to have generated a 10% annual compound return over that five-year period. However, this does not mean that the investment actually appreciated by 10% during each of the five years. Any

pattern of growth that led to a final value of RM1,611 after five years would equate to a 10% annualized return. Suppose the investment earned nothing for the first four years, and then earned RM611 in its last year (a 61.1% return for the year). This would still equate to a 10% annual compound return over the five-year measurement period, since the final amount is still equal to what the RM1,000 would have grown to if it had appreciated by a steady 10% each year.



73


Type of Fund : Growth and Income

Category of Fund : Balanced

Objective of KBF

The investment objective of KBF is to provide a portfolio of investments with lower risk and lower volatility for investors. Any material changes to the investment objective of the Fund would require the Unit Holders’ approval. Investors’ Profile

KBF is suitable for investors who are willing to accept moderate risk in order to achieve a reasonable return on their capital over the medium to long-term period ranging from three (3) to five (5) years. This enables the investors to withstand extended periods of market highs and lows in the pursuit of capital growth as well as distribution of income with KBF. Specific Benefits of KBF

Less Volatility KBF is generally less volatile in nature due to its limited exposure in equities

(maximum 60% of NAV) and at the same time, investors may have a chance to enjoy stable income stream due to its investments in fixed income securities.

Performance KBF may outperform growth funds in a bear market. Principal Investment Strategies

KBF seeks to maximise total returns by providing investors with a combination of capital appreciation and income distribution, if any, while reducing risk through diversified investments in equities and fixed income securities which are broadly summarised as follows: 1. to invest in a balanced portfolio of equity and equity-related securities and fixed income securities; 2. to invest in securities which are readily marketable, although a proportion of the Fund may consist of

investments in equities and bonds of smaller quoted companies; and 3. to invest in futures market for hedging purposes only. In selecting investments, emphasis is placed on prospects for significant growth in the long-term and in particular, companies which have strong fundamentals and sound management.

Accordingly, the indicative asset allocation of KBF will be as follows:

Maximum 60% of the NAV - Equities Maximum 40% of the NAV - Fixed income instruments Minimum 2% of the NAV - Liquid assets

Investment Method


Involved




The Fund is managed on an active bottom-up

strategy. The Fund also invests in fixed

income instruments.

The Fund’s investments focus on growth stocks with a reasonable dividend

yield. The risk profile of KBF is lower than

KPF.

Asset allocation is actively managed to commensurate with

expected risk/reward ratio for

the market.

We use active asset allocation and stock volatility to control

risk. For fixed income instruments,

we monitor the credit risk and duration of the

portfolio to ensure that we are

positioned correctly.


committee and can include high level of cash and/or fixed

income instruments over equities.

The cash will be


74

Investment Method


Involved




place-out into short-term money

market instruments and/or deposits.


60% of the NAV - FTSE-Bursa Malaysia 100 Index source from www.bursamalaysia.com. 40% of the NAV - Maybank 12-month fixed deposit rate source from www.maybank2u.com.

The composite benchmark is a reflection of the Fund’s asset allocation of 60% of the Fund’s NAV in equities and 40% of the Fund’s NAV in fixed income instruments.



75

Kenanga Islamic Balanced Fund (KIBF)

Type of Fund : Growth & Income

Category of Fund : Balanced (Islamic)

KIBF is targeted more towards investors who prefer investing in a portfolio of investments that strictly adhere to requirements of the Shariah and are prepared to accept moderate risk in order to achieve medium to long-term capital gain. Objective of KIBF

The investment objective of KIBF is to achieve steady capital growth and income distribution (if any) over the medium to long-term period by investing in a diversified portfolio of authorised investments in accordance with Shariah requirements. Any material changes to the investment objectives of the Fund would require Unit Holders’ approval. Investors’ Profile

KIBF is suitable for investors who want a portfolio of investments that complies with Shariah requirements and at the same time, willing to accept moderate risk in order to achieve a steady capital growth and income distribution (if any) over the medium to long-term period ranging from three (3) to five (5) years. This enables the investors to withstand extended periods of market highs and lows in the pursuit of capital growth as well as distribution of income with KIBF. The Manager will seek to invest the assets of KIBF in high growth and undervalued Shariah-compliant securities and sukuk which offer good growth potential with an investment time horizon between three (3) to five (5) years. Specific Benefits of KIBF

Less Volatility KIBF is generally less volatile in nature due to its limited exposure in Shariah-

compliant equities (maximum 60% of NAV) and at the same time, investors may have a chance to enjoy stable income stream due to its investments in sukuk.

Performance KIBF may outperform growth funds in a bear market.

Caters to the Needs of Shariah Adherent Investors

KIBF provides Shariah-adherent investors as well as all other investors an alternative to invest in Shariah-compliant investments.


KIBF seeks to maximise total returns by providing investors with a combination of capital appreciation and income distribution, if any, while reducing risk through diversified investments in Shariah-compliant equities and sukuk which are broadly summarised as follows:

1. to invest in any combination of Shariah-compliant equity and equity-related securities as well as sukuk; and

2. to invest in Shariah-compliant securities, which are readily marketable, although a proportion of KIBF may consist of investments in Shariah-compliant equities and sukuk of smaller quoted companies; and

In selecting investments, emphasis is placed on prospects for significant growth in the long-term and in particular companies, which have strong fundamentals and sound management.

These give opportunities for investors to opt for capital gains and income that comply with Shariah requirements. The investment committee will work closely with the appointed Shariah adviser to ensure that the investments of the Fund are in compliance with Shariah requirements. Accordingly, the indicative asset allocation of the Fund shall be as follows:

Maximum 60% of the NAV - Shariah-compliant equities Maximum 40% of the NAV - Sukuk Minimum 2% of the NAV - Islamic liquid assets


76

Investment Method


Involved




The Fund is managed on an

active bottom- up growth strategy,



The Fund’s investments focus on

growth Shariah-compliant stocks with a reasonable dividend yield. These Shariah-compliant stocks will have strong potential

for capital appreciation and yet

provide steady dividend income stream though of

higher risks. Sukuk will provide more

steady income but lower capital

appreciation potential due to lower risks.

Asset allocation is actively managed to commensurate with expected risk/reward ratio of the market.

We use active asset allocation and Shariah-compliant stock volatility to control risk. For

sukuk, we monitor the credit risk and

duration of the portfolio to ensure we are positioned

correctly.


committee and can include high level of cash and/or sukuk

over Shariah-compliant equities.

The cash will be place-out into Islamic money

market instruments and/or Islamic

deposits.


60% of the NAV - FTSE-Bursa Malaysia Emas Shariah Index source from www.bursamalaysia.com. 40% of the NAV - Maybank 12-month GIA rate source from www.maybank2u.com. The composite benchmark is a reflection of the Fund’s asset allocation of 60% of the Fund’s NAV in Shariah-compliant equities and 40% of the Fund’s NAV in sukuk.


http://maybank/


77

Kenanga Bond Fund (KBNF)

Type of Fund : Income

Category of Fund : Fixed Income

KBNF is suitable for investors who prefer less volatility in their investments. KBNF aims to provide a steady income stream with a lower risk profile compared to balanced and growth funds. Objective of KBNF

The investment objective of KBNF is to provide investors with a steady income* stream over the medium to long-term period through investments primarily in fixed income instruments. Any material changes to the investment objective of the Fund would require the Unit Holders’ approval. Investors’ Profile

KBNF is suitable for relatively conservative investors who wish to have more stable income* and returns and have medium to long term investment time horizons ranging from three (3) to five (5) years. * Note: The primary mode of distribution of income will be done via reinvestment of additional Units. Kindly refer to mode of distributions at page 124 for full details. Specific Benefits of KBNF

Consistent Distributions

There will be an implied commitment to pay consistent distributions every year, where possible.

Higher Returns Aims to provide a return that is higher than fixed deposits, where possible.

Lower Risk, Less Volatility

Lower risk and less volatility due to its high investment in fixed income instruments.

Risk Adverse Investors

Suitable for investors with lower risk profiles.

Performance

KBNF may outperform equity growth funds and equity income funds in a during a bear equity market.


KBNF will invest in a diversified portfolio consisting principally of fixed income securities and other permissible investments. Investments in fixed income funds are expected to be less volatile and have a lower risk of loss of capital compared to riskier assets such as equities. Accordingly, the indicative asset allocation of the Fund shall be as follows:

70% - 98% of the NAV - Fixed income instruments Minimum 2% of the NAV - Liquid assets

Investment Method


Involved




The Fund aims to optimize returns through active

portfolio management and market positioning

in the bond market. This

Fixed income instruments usually

provide steady income stream from their coupon payments

although their market value may fluctuate.

Risks involved in

Both strategic and tactical asset allocation are

employed actively, based on the

derived short and long-term bond

market.

Active risk management is

employed through the pre-determined investment process

that seeks to mitigate credit risk, while active bond


committee and can include high level of

cash over fixed income


78

Investment Method


Involved




includes investments in both sovereign and corporate bond markets.

investing in fixed income instruments include market risk,

interest rate risk, credit risk and reinvestment

risk.

Nevertheless, the Fund will maintain a

minimum 70% invested in fixed

income instruments at all times.

management strategies are employed to

mitigate duration risk in relation to our prevailing market

outlook.

instruments.

The cash will be

place-out into short-term money market instruments and/or

deposits.


Maybank 12-months fixed deposit rate source from www.maybank2u.com.



79

Kenanga Malaysian Inc Fund (KMIF)



Objective of KMIF

The investment objective of KMIF is to provide consistent annual returns and medium to long-term capital appreciation by investing in Malaysian securities with global reach. Any material changes to the investment objective of the Fund would require the Unit Holders’ approval. Investors’ Profile

KMIF is suitable for investors who are seeking medium to long-term capital appreciation ranging from three (3) to five (5) years as well as a diversified investment consisting of Malaysian equities with global exposure. Specific Benefits of KMIF


KMIF is generally volatile in nature due to its high investment in securities (maximum 98% of NAV) and thus investors may enjoy potentially higher returns than other types of funds (i.e. balanced funds and/or fixed income funds) during an upward market trend.


KMIF seeks to maximise total returns by providing investors with capital appreciation and income (if any), while reducing risk through diversified investments mainly in equities and short-term money market instruments which are broadly summarised as follows: 1. to invest in any combination of equity and equity-related securities; 2. to invest in securities which are readily marketable, although a proportion of the Fund may consist of

investments in equities of smaller quoted companies; and 3. to invest in Malaysian companies that are expanding beyond Malaysia’s shore – they have scalable

business models in Malaysia that potentially can tap regional and global market bases. Some of these companies are already having presence in the Asian region or planning to go beyond Asian markets with global vision.

Accordingly, the indicative asset allocation of KMIF will be as follows:

Up to 98% of the NAV - Malaysian equities Minimum 2% of the NAV - Liquid assets

Investment Method Types and Characteristics Of Instruments/Risks

Involved




The Fund is managed on an active bottom-up

growth strategy, and adopts a moderate trading strategy in

line with the Fund’s objective.

The Fund invests in growth stocks

irrespective of market capitalization, however,

smaller market capitalised companies may run higher liquidity

risk than normal.

Up to 98% of the NAV in Malaysian

equities;

Minimum 2% of the NAV in liquid assets;

Asset allocation will be actively managed

to commensurate with expected

risk/reward ratio for the market.

We use active asset allocation and the stock volatility to

control risk.

These can be undertaken upon

consultation with the investment

committee and can include holding

higher level of cash and/or fixed income

instruments over equities.

The cash will be place-out into short-term money market instruments and/or

deposits.


80


FTSE-Bursa Malaysia 100 Index source from www.bursamalaysia.com.



81



Category of Fund : Fixed Income

Objective of KCPF

The Fund aims to provide investors a regular stream of income* through investments in short to medium-term^ fixed income instruments with high level of liquidity¹. Any material changes to the investment objective of the Fund would require the Unit Holders’ approval. Investors’ Profile

KCPF is suitable for investors who desire a steady stream of income*, have short to medium-term^ investment horizon, have low tolerance of investment risks, want a highly liquid investment portfolio and want a low risk fund as part of the asset allocation strategy. Specific Benefits of KCPF

KCPF gives you safety of capital as the instruments that the Fund invests in are by and large some of the most stable and safe investments. By purchasing debt securities issued by investment-grade banks, large corporations and the government, the Fund carries relatively low default risk while offering relatively higher returns in comparison to similar low-risk/liquid products. KCPF provides you with low-cost access to short-term fixed income instruments and medium-term bonds which generally would require huge capital outlay and would be inaccessible to the majority of investors. The Fund seeks to provide investors with a regular income* stream with security of capital which gives you the liquidity to access your funds to meet your cash flow needs. Note: * Income will be reinvested into additional Units into the Fund unless Unit Holders request for cheques to be sent to

them. ^ Short to medium-term refers to a period of 3 – 5 years. ¹ High level of liquidity refers to fixed income instruments that are very liquid and can be sold off easily. Principal Investment Strategies

To achieve the objective of the Fund, it will invest in high quality short to medium-term^ fixed income instruments with minimum credit ratings of A3 or P2 (by RAM) or equivalent rating by other recognized rating agencies. We adopt an active investment management process to manage credit risks, the prevailing interest rate environment and anticipated redemptions by Unit Holders. Investment in this Fund is not the same as placing funds in a deposit with a financial institution. There are risks involved and investors should rely on their own evaluation to assess the merits and risks when investing in the Fund. The investment in the Fund is not capital guaranteed. However, the risks of capital loss are considered low as the Fund would invest in low risk assets as stated under investment strategy above. In addition, the short weighted average maturity of less than 365 days would also minimize the risks from interest rate movements, hence further reducing the risks of capital loss. Furthermore we also manage the portfolio risks amongst others, by:-

Adhering to the Fund’s investment objective and investment restrictions and limits;

Carrying out robust credit analysis for investment decision making;

Daily monitoring of market liquidity;

Effective asset allocation;

Constant reporting of investment matters to the investment committee and senior management. Risk Management Strategies

The Fund employs strategies such as overall portfolio duration and yield curve positioning to deal with market and reinvestment risks. Bond strategies employed can translate into a laddered, barbell or bullet portfolios. For investments in credits, a bottom-up approach in selecting corporate issuers in the portfolio and the selection of best-


82

priced securities within a given credit rating can improve the performance of a credit portfolio. Should the rating of the corporate issuers fall below the minimum rating of “investment grade” i.e. rated at least BBB- by RAM or equivalent rating by MARC or other rating agencies, we will try to dispose of the securities to the market, subject to pricing and liquidity of the securities. We will follow-up closely the development of the credit issue. The Fund’s internal controls include asset allocation strategies to limit exposures in a single asset class. The Fund also imposes single-issuer limits to restrict over-investments in a single or group of companies i.e. issuer risks. Portfolio turnover and dealing limits control churning and over-trading with securities trade-counter parties. Functionally, investment management is separated from the trade processing and compliance units so that investments limits can be independently monitored and reported. We may, in compliance with the applicable investment limits and restrictions imposed, temporarily adopt a more defensive attitude by holding more cash in the portfolio when we believe that the market or the economy are experiencing excessive volatility, a persistent general decline or other negative conditions. Accordingly, the indicative asset allocation of KCPF will be as follows:

0% - 50% of the Fund’s NAV - Bonds 50% - 100% of the Fund’s NAV - Cash/ money market instruments Performance benchmark

Maybank 1-month fixed deposit rate obtainable from www.maybank2u.com.



83

Kenanga i-Enhanced Cash Fund (KIECF)


Category of Fund : Islamic Fixed Income

Objective of KIECF

The Fund aims to provide investors a regular stream of income* and high level of liquidity^ to meet cash flow requirement while maintaining capital preservation

1.

All investment instruments of the Fund will be Shariah-compliant. Any material changes to the investment objective of the Fund would require the Unit Holders’ approval. Investors’ Profile

KIECF is suitable for investors who desire a steady stream of income*, have low tolerance of investment risks, want a highly liquid investment portfolio, want a low risk fund as part of the asset allocation strategy, want pricing stability to ensure preservation of capital

1 and have short-term

2 investment horizon.

Specific Benefits of KIECF

KIECF is an alternative cash management instrument that is Shariah-compliant. It provides you monthly stream of ‘halal’ income*. It also gives you capital preservation

1 as the instruments that the Fund invests in are by and large

some of the most stable and safe investments. By purchasing sukuk issued by investment-grade financial institutions, large corporations and the government, the Fund carries relatively low default risk while offering relatively higher returns in comparison to similar lower risk/liquid products. Principal Investment Strategies

To achieve the objective of the Fund, it will invest in high quality short to medium-term³ sukuk with minimum credit ratings of A3 or P2 (by RAM) or equivalent rating by MARC. We adopt an active investment management process to manage credit risks, the prevailing interest rate environment and anticipated redemptions by Unit Holders.

Investment in this Fund is not the same as placing funds in an Islamic deposit with a financial institution. There are risks involved and investors should rely on their own evaluation to assess the merits and risks when investing in the Fund. The investment in the Fund is not capital guaranteed. However, the risks of capital loss are considered low as the Fund would invest in low risk assets as stated under investment strategy above. In addition, the short weighted average maturity of less than 732 days would also minimize the risks from interest rate movements, hence further reducing the risks of capital loss. Furthermore we also manage the portfolio risks amongst others, by:-

Adhering to the Fund’s investment objective and investment restrictions and limits;

Carrying out robust credit analysis for investment decision making;

Daily monitoring of market liquidity;

Effective asset allocation;

Constant reporting of investment matters to the investment committee and senior management. Note: * Income will be reinvested into additional Units into the Fund unless Unit Holders request for cheques to be sent to

them. ^ High level of liquidity refers to the liquidity of the Fund, where Unit Holders receive their redemption proceeds faster as

compared to other retail funds. The period of redemption proceeds for this Fund is the next Business Day after the redemption application is received by the Manager at or before 4.00 p.m. on a Business Day.

1 The Fund is not a capital protected nor a capital guaranteed fund.


3 Short to medium-term refers to a period of 3 – 5 years.


The Fund employs strategies such as overall portfolio duration and yield curve positioning to deal with market and reinvestment risks. Sukuk strategies employed can translate into a laddered, barbell or bullet portfolios. For


84

investments in credits, a bottom-up approach in selecting corporate issuers in the portfolio and the selection of best-priced Shariah-compliant securities within a given credit rating can improve the performance of a credit portfolio. Should the rating of the corporate issuers fall below the minimum rating of “investment grade” i.e. rated at least BBB- by RAM or equivalent rating by MARC or other rating agencies, we will try to dispose of the Shariah-compliant securities to the market, subject to pricing and liquidity of the Shariah-compliant securities. We will follow-up closely the development of the credit issue. The Fund’s internal controls include asset allocation strategies to limit exposures in a single asset class. The Fund also imposes single-issuer limits to restrict over-investments in a single or group of companies i.e. issuer risks. Portfolio turnover and dealing limits control churning and over-trading with Shariah-compliant securities trade-counter parties. Functionally, investment management is separated from the trade processing and compliance units so that investments limits can be independently monitored and reported. We may, in compliance with the applicable investment limits and restrictions imposed, temporarily adopt a more defensive attitude by holding more cash in the portfolio when we believe that the market or the economy are experiencing excessive volatility, a persistent general decline or other negative conditions. Accordingly, the indicative asset allocation of KIECF will be as follows:

0% - 60% of the Fund’s NAV - Sukuk 40% - 100% of the Fund’s NAV - Cash/ Islamic money market instruments Performance benchmark

Maybank 1-month GIA rate obtainable from www.maybank2u.com.



85

Kenanga Islamic Money Market Fund (KIMMF)


Category of Fund : Money Market (Islamic)

Objective of KIMMF

The investment objective of the Fund is to provide investors with a regular income* stream that comply with Shariah requirements whilst maintaining capital stability. Any material changes to the investment objective of the Fund would require the Unit Holders’ approval. Investors’ Profile

KIMMF is suitable for investors who seek regular income* that complies with Shariah requirements with capital stability, with low risk tolerance and short to medium-term investment horizon of less than three (3) years. * Note: The primary mode of distribution of income will be done via reinvestment of additional Units. Kindly refer to mode of distributions at page 124 for full details. Specific Benefits of KIMMF

Flexibility of quick access to funds;

No entry & exit cost;

Allows excess funds to be invested over the short-term. Principal Investment Strategies

The Fund will invest in short term Islamic money market instruments and government/government-backed sukuk. The Fund will be actively managed to provide liquidity to meet the short-term cash flow requirements. The investment instruments may include government or government-backed sukuk, corporate sukuk, Islamic accepted bills, Islamic negotiable instruments, Islamic promissory notes, Islamic call deposits and other short-term corporate sukuk, Islamic money market instruments and any other permitted Shariah-compliant investments. The Manager intends to invest in investment instruments with a minimum credit rating of BBB or P2 by RAM or an equivalent credit rating by MARC. Should any of the investment instruments of the Fund fall below the aforementioned credit ratings, the Manager will seek to dispose of the said investment instruments and replace them with those which are of a minimum credit rating of BBB or P2 by RAM or an equivalent credit rating by MARC. Accordingly, the indicative asset allocation of KIMMF will be as follows:

Up to 100% of the NAV of the Fund in Islamic money market instruments and Shariah-compliant government securities and sukuk.

Types and Characteristics Of Instruments/Risks Involved

Asset Allocation Strategy Risk Management Strategies

Government/government-backed sukuk, corporate sukuk, Islamic

accepted bills, Islamic negotiable instruments, Islamic promissory

notes, Islamic call deposits, Islamic money market instruments and any other permitted Shariah-compliant

investments.

Up to 100% of NAV in Islamic

money market instruments and Shariah-compliant government

securities and sukuk.

The Fund has been structured as

such that it adheres to Shariah requirements related to liquid

instruments while credit & interest rate risks are mitigated through

duration and credit assessments.


Maybank Overnight Repo Rate source from www.maybank2u.com. INVESTMENT IN THE FUND IS NOT THE SAME AS PLACEMENT IN A DEPOSIT WITH A FINANCIAL INSTITUTION. THERE ARE RISKS INVOLVED AND INVESTORS SHOULD RELY ON THEIR OWN EVALUATION TO ASSESS THE MERITS AND RISKS WHEN INVESTING IN THE FUND.


86



Category of Fund : Money Market

Objective of KMMF

The investment objective of the Fund is to provide investors with a regular income* stream while maintaining capital stability. Any material changes to the investment objective of the Fund would require the Unit Holders’ approval. Investors’ Profile

KMMF is suitable for investors who seek regular income* with capital stability, with low risk tolerance and short to medium-term investment horizon of less than three (3) years. * Note: The primary mode of distribution of income will be done via reinvestment of additional Units. Kindly refer to mode of distributions at page 124 for full details. Specific Benefits of KMMF

Flexible or quick access to funds;

No entry & exit fee;

Allows excess funds to be invested over short term. Principal Investment Strategies

The Fund will invest in short-term money market instruments, government/government-backed securities and corporate bonds. The Fund will be actively managed to provide liquidity to meet the short-term cash flow requirements. The Fund may also invest in bills of exchange, negotiable instruments of deposits, promissory notes, call deposits and other short-term government/corporate bonds and money market instruments and any other permitted instruments.

The Manager intends to invest in investment instruments with a minimum credit rating of BBB or P2 by RAM or an equivalent credit rating by MARC. Should any of the investment instruments of the Fund fall below the aforementioned credit ratings, the Manager will seek to dispose of the said investment instruments and replace them with those which are of a minimum credit rating of BBB or P2 by RAM or an equivalent credit rating by MARC. Accordingly, the indicative asset allocation of KMMF will be as follows:

Up to 100% of the NAV of the Fund in money market instruments and government/government-backed/corporate bonds.

Types and Characteristics Of Instruments/Risks Involved

Asset Allocation Strategy Risk Management Strategies

Government or government-backed securities, corporate bonds, bills of exchange, negotiable instruments of deposits, promissory notes, call deposits, money market instruments and any other permitted investments.

Up to 100% of NAV in money market instruments and government/ government-backed/corporate bonds.

The Fund has been structured as such that it is invested in highly liquid permitted instruments while credit and interest rate risks it may face are mitigated through duration and credit assessments.


Maybank Overnight Repo Rate source from www.maybank2u.com. INVESTMENT IN THE FUND IS NOT THE SAME AS PLACEMENT IN A DEPOSIT WITH A FINANCIAL INSTITUTION. THERE ARE RISKS INVOLVED AND INVESTORS SHOULD RELY ON THEIR OWN EVALUATION TO ASSESS THE MERITS AND RISKS WHEN INVESTING IN THE FUND. KENANGA OneAnswer

TM


87

Kenanga Bon Islam Fund^

Kenanga Diversified Fund

Kenanga Shariah Balanced Fund^




Kenanga Shariah Growth Opportunities Fund^

Relative Risk Low

High

Low

High

Rela

tive r

etu

rn

Fixed Income funds

Balanced funds

Equity funds

Kenanga Ekuiti Islam Fund^

Kenanga Income Plus Fund

Mixed Asset fund

What is Kenanga OneAnswer

TM?

Kenanga OneAnswer

TM provides you with a choice of 9 unit trust funds that are designed to allow you to customize

your investment portfolio in a simple and convenient investment package. Kenanga OneAnswerTM

allows you to customize your investment solution that is simple to understand, easy to use and changes as your needs change – all within the one package. Kenanga OneAnswer

TM puts you in control by offering you wide investment choice,

greater convenience, and more flexibility. Why Kenanga OneAnswer

TM?

Kenanga OneAnswer

TM addresses your needs for choice of funds within a multi-product platform that will allow free

and unlimited switching between the various funds. This will empower you with wider choice, greater flexibility and convenience to manage your evolving investment needs with a one-time entry fee and thereafter free unlimited switching within the various funds under Kenanga OneAnswer

TM and/or other local and foreign funds managed by

us. In addition, Kenanga OneAnswer

TM allows you the choice to customize your portfolios, based on your conservative,

balanced and aggressive risk profiles, using suggested model portfolios or choosing your own preferred combination. Choosing the investments that suit you

Kenanga OneAnswer

TM may be tailored to your needs. You may choose from 9 different investments funds. Each

Fund has different investment philosophies and performance objectives, ranging from conservative to a strong growth-oriented approach. Kenanga OneAnswer

TM allows you to select, in any proportion, any number of those

investments to implement your investment strategy. Managing risk and return

Before investing, you need to determine what level of risk is appropriate for you. Your savings are important and should be managed carefully to meet your financial goals. There is generally a relationship between the risk associated with different investments and their potential returns. Investments earning higher returns usually carry higher risk and their value may rise or fall significantly and returns may be more volatile. More stable investments, such as cash and bonds/sukuk, generally earn relatively lower returns, but their value and returns are less likely to fluctuate significantly. Each type of investment generally has a different set of risk and return features. The risk/ return relationship is a trade-off as illustrated in Figure 1. The price of higher returns is the likelihood that your returns will fluctuate over time and the greater possibility that you could lose money. The cost of lower risk might be that your returns do not provide the money you need to meet your long-term financial goals. An important part of the relationship with your adviser is working out your own risk/return profile, to determine how much risk is appropriate for you in the context of your investment objectives and circumstances. Establishing your profile is an important step in selecting the investments that suit your needs. Accordingly, we have developed and suggested model portfolios that may provide you with a total portfolio solution that is suitable to your particular profile and circumstances.

Figure 1 – Expected relative risk and return of the Kenanga OneAnswer

TM

^ Shariah-compliant Funds


88


Type of Fund : Growth & Income


Objective of KBCF

The Fund aims to achieve long-term* capital growth through investments in companies that have relatively larger market capitalization^. Any material changes to the investment objective of the Fund would require the Unit Holders’ approval. Investors’ Profile

KBCF is suitable for investors who are seeking high capital growth, have moderate to high-risk tolerance and can withstand significant short-term¹ volatilities and have long-term* investment horizon. Principal Investment Strategies

The Fund will construct a diversified investment portfolio that consists of fundamentally sound companies that have large market capitalization^ and are dividends paying. The Fund may invest up to 98% of its NAV in such companies. These companies are generally referred to as ‘blue chip’ companies. The strategy begins with a thorough macroeconomic analysis and determining the investable universe of stocks for the Fund. The research is based on internal fundamental research, company contacts and visits, external research, databases and quantitative support. Finally, portfolio is constructed using bottom-up analysis based on the level of conviction formed for individual stocks. The companies are initially evaluated based on a combination of growth and value parameters. The more favorable stocks are subject to thorough fundamental analysis including their dividend payout, yields and sustainability. The best companies are then chosen from each sector. The final portfolio is determined taking into consideration the relative attractiveness of each sector. We employ ‘Price-for-Growth’ as a global standard to equity investments. ‘Price for Growth’ is based on the belief that earnings growth drives stock returns. The strategy focuses on the analysis of the earnings and cash flow potential of individual companies using a bottom-up fundamental approach. The objective is to find underpriced earnings growth in the market by making an assessment of what a reasonable price is for the earnings growth that companies offer. The Fund believes that there is a trade-off between the desire for good earnings growth and the amount paid for that growth. In addition to the ‘Price-for-Growth’ strategy, the Fund also evaluates the dividend policy, payment and dividend yield relative to its price. Overall the investments are in companies that offer good medium-term earnings growth, sustainable dividend yield and are inexpensively priced. We adopt an active investment management process that is not a ‘frequent-trading’ strategy. At the same time, the active investment management strategy including diversification and in depth fundamental research, also helps in mitigating risks associated with equity investing including market, stock-specific and liquidity risks. Note: * Long-term refers to a period of 7 years and above. 1 Short-term refers to a period of less than 3 years.

^ Relatively larger market capitalization refers to companies with market capitalization of more than RM 4 billion at the point of purchase.


We adopt an active investment management process that is not a ‘frequent-trading’ strategy. An active investment process is a dynamic mix of market and corporate earnings and market and stock valuation. Any one or a combination of the factors may rapidly change: stocks may be bought or sold as and when the factors warrant it. At the same time, the active investment management strategy also helps in mitigating risks associated with equity investing including market, stock-specific and liquidity risks. Risks associated with investing in this Fund i.e. market, stock-specific and liquidity risks are controlled to some extent by making adjustments to its asset allocation and/or sector and stock weightings, based on the investment


89

outlook prevailing at that time. The Fund also imposes single-issuer limits to restrict over-investment in a single or group of companies i.e. stock-specific risk and to ensure diversification. We may, in compliance with the applicable investment limits and restrictions imposed, temporarily adopt a more defensive attitude by holding more cash in the portfolio when we believe that the market or the economy is experiencing excessive volatility, a persistent general decline or other negative conditions. Accordingly, the indicative asset allocation of KBCF will be as follows:

50% - 98% of the Fund’s NAV - Equities 2% - 50% of the Fund’s NAV - Fixed income securities/ cash Performance benchmark

FTSE Bursa Malaysia 100 Index obtainable from www.bursamalaysia.com.



90

Kenanga Growth Opportunities Fund (KGOF)



Objective of KGOF

The Fund aims to achieve consistent capital appreciation over the long-term* by primarily investing in relatively smaller capitalized companies^ with good growth prospects

1.

Any material changes to the investment objective of the Fund would require the Unit Holders’ approval. Investors’ Profile

KGOF is suitable for investors who are seeking high capital appreciation, have moderate to high-risk tolerance and can withstand significant short-term

2 volatilities, and have long-term* investment horizon.


The Fund is an equity growth fund that is actively managed based on both quantitative and qualitative disciplines. Its strategy is to invest in companies

3 that are likely to yield higher earnings growth than the market average.

The Fund adopts a theme-based approach, defined as a growth trend driven by innovation or imbalances and changes in the economy. These themes play out over the medium to longer term and cannot be corrected or fulfilled in the short term. The Fund’s unique theme-based approach could be summarized as a 4-step process:

Identify – Identifying themes by trends;

Specify – Specifying sectors making up the trend;

Quantify – Establishing potential size of market and growth;

Classify – Selecting the stocks related and grouping them. Thus the theme-based approach is able to capture the above average growth prospect which is driven and sustained by the identified themes. The investment process for the Fund is designed to identify undervalued quality growth stocks which are just about to embark on an aggressive growth phase. Investment process is characterized by a well-designed balance of top down and bottom up decision making taking the specifics of the different sectors into account. Stocks are evaluated in a disciplined manner carefully balancing business outlook, valuations, financial performance and management quality. The resulting portfolio holdings typically have above average growth potential and solid financials. Risks associated with investment in this Fund are mitigated by diversification among the sectors and securities held. The active management style and fundamental in depth research incorporated into the Fund’s investment process also help to mitigate investment risks i.e. market, stock-specific and liquidity risks. Note: * Long-term refers to a period of 7 years and above. ^ Relatively smaller capitalized companies refers to companies with market capitalization of less than RM4 billion at

the point of purchase. 1 Good growth prospects refers to companies with higher earnings growth than the market average.


3 The Fund will invest in companies with market capitalization of less than RM4 billion at the point of purchase.


We adopt an active investment management process that is not a ‘frequent-trading’ strategy. An active investment process is a dynamic mix of market and corporate earnings and market and stock valuation. Any one or a combination of the factors may rapidly change: stocks may be bought or sold as and when the factors warrant it. At the same time, the active investment management strategy also helps in mitigating risks associated with equity investing including market, stock-specific and liquidity risks. Risks associated with investing in this Fund i.e. market, stock-specific and liquidity risks are controlled to some extent by making adjustments to its asset allocation and/or sector and stock weightings, based on the investment


91

outlook prevailing at that time. The Fund also imposes single-issuer limits to restrict over-investment in a single or group of companies i.e. stock-specific risk and to ensure diversification. We may, in compliance with the applicable investment limits and restrictions imposed, temporarily adopt a more defensive attitude by holding more cash in the portfolio when we believe that the market or the economy is experiencing excessive volatility, a persistent general decline or other negative conditions. Accordingly, the indicative asset allocation of KGOF will be as follows:


FTSE Bursa Malaysia Emas Index obtainable from www.bursamalaysia.com.



92

Kenanga Shariah Growth Opportunities Fund (KSGOF)


Category of Fund : Islamic Equity

Objective of KSGOF

The Fund aims to achieve consistent capital appreciation over the long term* by primarily investing in Shariah-compliant securities with good growth prospects

1.

Any material changes to the investment objective of the Fund would require the Unit Holders’ approval. Investors’ Profile

KSGOF is suitable for investors who are seeking high capital appreciation from Shariah-compliant securities, have moderate to high-risk tolerance and can withstand significant short-term

2 volatilities, and have medium to long-

term3 investment horizon.


The Fund is an Islamic equity growth fund that is actively managed based on both quantitative and qualitative disciplines. Its strategy is to invest in Shariah-compliant securities that are likely to yield higher earnings growth than the market average. The Fund adopts a theme-based approach defined as a growth trend driven by innovation or imbalances and changes in the economy. These themes play out over the medium to longer term and cannot be corrected or fulfilled in the short term. The Fund’s unique theme-based approach could be summarized as a 4-step process:

Identify – Identifying themes by trends;

Specify – Specifying sectors making up the trend;

Quantify – Establishing potential size of market and growth;

Classify – Selecting Shariah-compliant related stocks and grouping them. Thus the theme-based approach is able to capture the above average growth prospect which is driven and sustained by the identified themes. The investment process for the Fund is designed to identify undervalued quality growth Shariah-compliant stocks which are just about to embark in aggressive growth phase. Investment process is characterized by a well-designed balance of top down and bottom up decision making taking the specifics of the different sectors into account. Shariah-compliant stocks are evaluated in a disciplined manner carefully balancing business outlook, valuations, financial performance and management quality. The resulting portfolio holdings typically have above average growth potential and solid financials. Risks associated with Shariah-compliant equity investment in this Fund are mitigated by diversification among the sectors and Shariah-compliant securities held. The active management style and fundamental in depth research incorporated into the Fund’s investment process also help to mitigate investment risks i.e. market, stock-specific and liquidity risks. Note: * Long-term refers to a period of 7 years and above. 1 Good growth prospects refers to companies with higher earnings growth than the market average.


3 Medium to long-term refers to a period of 5 years or longer.


We adopt an active investment management process that is not a ‘frequent-trading’ strategy. An active investment process is a dynamic mix of market and corporate earnings and market and Shariah-compliant stock valuation. Any one or a combination of the factors may rapidly change: Shariah-compliant stocks may be bought or sold as and when the factors warrant it. At the same time, the active investment management strategy also helps in mitigating risks associated with Shariah-compliant equity investing including market, stock-specific and liquidity risks. Risks associated with investing in this Fund i.e. market, stock-specific and liquidity risks are controlled to some extent by making adjustments to its asset allocation and/or sector and Shariah-compliant stock weightings, based


93

on the investment outlook prevailing at that time. The Fund also imposes single-issuer limits to restrict over-investment in a single or group of companies i.e. stock-specific risk and to ensure diversification. We may, in compliance with the applicable investment limits and restrictions imposed, temporarily adopt a more defensive attitude by holding more cash in the portfolio when we believe that the market or the economy is experiencing excessive volatility, a persistent general decline or other negative conditions. Accordingly, the indicative asset allocation of KSGOF will be as follows:

70% - 98% of the Fund’s NAV - Shariah-compliant equities 2% - 30% of the Fund’s NAV - Sukuk/ cash Performance benchmark

FTSE Bursa Malaysia Emas Shariah Index obtainable from www.bursamalaysia.com.



94



Category of Fund : Islamic Equity

Objective of KEIF

The Fund aims to achieve long-term* capital growth through investment in Shariah-compliant stocks. Any material changes to the investment objective of the Fund would require the Unit Holders’ approval. Investors’ Profile

KEIF is suitable for investors who are seeking high capital growth from Shariah-compliant securities, have relatively high-risk profiles and can withstand significant short-term^ volatilities, and have long-term* investment horizon. Principal Investment Strategies

Investments are on Shariah-compliant securities i.e. equities that offer medium-term

1 earnings growth and that are

inexpensively priced². Firstly, the strategy begins with a thorough macroeconomic analysis and determining the investable universe of stocks for the Fund. The Fund employs the investment style known as ‘price-for-growth’ to invest in listed equities that are Shariah-compliant. Such securities are characterized by operations that comply with Shariah requirements and have strong financial and business track records. The Fund may invest up to 98% of its NAV in such companies. ‘Price for growth’ is based on the belief that earnings growth drives stock returns. The strategy focuses on the analysis of the earnings and cash flow potential of individual companies using a bottom-up fundamental approach. The objective is to find underpriced earnings growth in the market by making an assessment of what a reasonable price is for the earnings growth that companies offer. The Fund believes that there is a trade-off between the desire for good earnings growth and the amount paid for that growth. Two key components are analyzed: ‘earnings per share’ growth, which is a measure of a company's growth potential; and ‘price earnings ratio’, which is a measure of relative value. Investments are on companies that offer good medium-term earnings growth and that are inexpensively priced. The strategy begins with a thorough macroeconomic analysis and determining the investable universe of Shariah-compliant stocks for the Fund. The research is based on internal fundamental research, company contacts and visits, external research, databases and quantitative support. Finally, the portfolio is constructed using bottom-up analysis, based on the level of conviction formed for individual Shariah-compliant stocks. We adopt an active investment management process that is not a ‘frequent-trading’ strategy. An active investment process is a dynamic mix of market and corporate earnings and market and Shariah-compliant stock valuation. At the same time, an active investment management process helps to mitigate risks associated with Shariah-compliant equity investment including market, stock-specific and liquidity risks. Note: * Long-term refers to a period of 7 years and above. ^ Short-term refers to a period of less than 3 years.

1 Medium-term refers to a period of between 5 – 7 years.

2 Inexpensively priced refers to equities that have a lower price earnings ratio compared with the industry average.


We adopt an active investment management process that is not a ‘frequent-trading’ strategy. An active investment process is a dynamic mix of market and corporate earnings and market and Shariah-compliant stock valuation. Any one or a combination of the factors may rapidly change: Shariah-compliant stocks may be bought or sold as and when the factors warrant it. At the same time, the active investment management strategy also helps in mitigating risks associated with Shariah-compliant equity investing including market, stock-specific and liquidity risks. Risks associated with investing in this Fund i.e. market, stock-specific and liquidity risks are controlled to some extent by making adjustments to its asset allocation and/or sector and Shariah-compliant stock weightings, based on the investment outlook prevailing at that time. The Fund also imposes single-issuer limits to restrict over-investment in a single or group of companies i.e. stock-specific risk and to ensure diversification.


95

We may, in compliance with the applicable investment limits and restrictions imposed, temporarily adopt a more defensive attitude by holding more cash in the portfolio when we believe that the market or the economy is experiencing excessive volatility, a persistent general decline or other negative conditions. Accordingly, the indicative asset allocation of KEIF will be as follows:

50% - 98% of the Fund’s NAV - Shariah-compliant equities 2% - 50% of the Fund’s NAV - Sukuk/ cash Performance benchmark

FTSE Bursa Malaysia Emas Shariah Index obtainable from www.bursamalaysia.com.



96

Kenanga Managed Growth Fund (KMGF)

Type of Fund : Income & Growth

Category of Fund : Balanced

Objective of KMGF

The Fund aims to achieve long-term* capital growth through diversified investments in equities and bonds. Any material changes to the investment objective of the Fund would require the Unit Holders’ approval. Investors’ Profile

KMGF is suitable for investors who are seeking a combination of both capital appreciation with income distribution, have moderate risk tolerance and can withstand short-term¹ volatility, and have long-term* investment horizon. Principal Investment Strategies

The Fund invests in a mixture of equities, bonds and money market instruments. The Fund engages active tactical allocation between asset classes with emphasis on managed growth and selects securities based on current earnings, growth prospects and potential for capital appreciation as well as income distribution. Tactical asset allocation between assets and sectors is determined by analyzing the economy, which influences the business cycle, and market factors. For stock investments, the Fund employs the ‘price-for-growth’ approach to stock selection and focuses primarily on large-capitalized companies that are dividends paying. Such companies are characterized by large-scale operations, strong financial and business track records, and are leaders in their respective fields. These companies are generally referred to as ‘blue chip’ companies. The Fund may also invest up to 60% of its NAV in bonds. The bond investment strategy utilizes macro-economic analysis to position the portfolio with respect to duration, convexity and yield curve shape. Value is added through the application of credit skills and interest rates anticipation. The strategy is based on the belief that fundamental economic and sector analysis drives long-term outperformance and that active management of credit risk can produce consistently superior results than those produced through passive management. Here, the Fund may take advantage of sector rotation, issue selection and relative value positioning. We adopt an active investment management strategy which also incorporates risk management strategy. Investment filters and fundamental research helps mitigate market, stock-specific, credit and interest rate risks. Active management of portfolio allows tactical positioning of the Fund which helps reduce market and other portfolio risks. Various bond strategies may be employed to maximize return and manage risks. In adverse market conditions, the Fund will remain true-to-label and within the mandate and asset allocation ranges. Note: * Long-term refers to a period of 7 years and above. 1 Short-term refers to a period of less than 3 years.


We adopt an active investment management strategy which also incorporates risk management strategy. Investment filters and fundamental research helps mitigate market, stock-specific, credit and interest rate risks. Active management of portfolio allows tactical positioning of the Fund which helps reduce market and other portfolio risks. Various bond strategies may be employed to maximize return and manage risks. We may, in compliance with the applicable investment limits and restrictions imposed, temporarily adopt a more defensive attitude by holding more cash in the portfolio when we believe that the market or the economy is experiencing excessive volatility, a persistent general decline or other negative conditions. Accordingly, the indicative asset allocation of KMGF will be as follows:

40% - 60% of the Fund’s NAV - Equities 40% - 60% of the Fund’s NAV - Fixed income securities/ cash


97


A composite of FTSE Bursa Malaysia 100 Index (50%) and RAM Quantshop MGS All Index (50%) obtainable from www.bursamalaysia.com and www.quantshop.com. This performance benchmark is selected to reflect the objective of the Fund that aims to achieve long-term capital growth through diversified investments in equities and bonds.


http://www.bursamalaysia.com/

http://www.quantshop.com/


98



Category of Fund : Mixed Asset

Objective of KDF

This Fund aims to provide investors capital appreciation with stability of income over a medium to long-term* investment horizon from a diversified investment portfolio. Any material changes to the investment objective of the Fund would require the Unit Holders’ approval. Investors’ Profile

KDF is suitable for investors who are seeking a combination of capital appreciation with a modest level of income, have moderate risk tolerance and can withstand short-term¹ volatility, and have medium to long-term* investment horizon. Principal Investment Strategies

The Fund’s asset allocation includes a mixture of equity securities, fixed income securities and money market instruments. The maximum equity weighting is limited to 70% of the Fund’s NAV. In times of actual or anticipated adverse market conditions, the equity exposure may be reduced. The Fund engages active tactical asset allocation between the asset classes which is determined by analyzing the economy, which influences the business cycle, and market factors. For equities investment, the Fund adopts an actively managed strategy and a disciplined investment process whereby thorough research is undertaken and stocks are analyzed utilizing a fundamental top down and bottom up investment process. Stocks are evaluated in a disciplined manner carefully balancing business outlook, valuations, financial performance and management quality. The Fund employs the “price for growth” approach for the equity investments. Typically, high portfolio turnover rates are generally not common to our investment strategy. For investment in fixed income securities, the investment strategy is diversifying investment holdings and spreading the maturity of bonds to ensure minimization of risks. The investment process begins with thorough macro economic analysis. The analysis is used to position the portfolio with respect to duration, convexity and yield curve shape. The Fund adds value through the application of credit skills and interest rates anticipation, shifting duration, sector and credit exposures in the context of the expected economic and financial environment. On a bottom-up perspective, the Fund focuses on seeking adequate reward for any credit risks assumed. Here, the Fund may take advantage of sector rotation, issue selection and relative value positioning. The Fund emphasizes medium to long-term investment views and involves the application of relative value analysis to individual credits and industry sectors. Risks associated with investment in this Fund are mitigated by diversification among asset classes and securities held. Equities investment risks i.e. market, stock-specific and liquidity risks are managed via in-depth research while active management of the fixed income securities helps to mitigate credit, interest rates, counterparty and market risks. Note: * Medium to long-term refers to a period of 5 years or longer. 1 Short-term refers to a period of less than 3 years.


We adopt an active investment management strategy which also incorporates risk management strategy. Investment filters and fundamental research helps mitigate market, stock-specific, credit and interest rate risks. Active management of portfolio allows tactical positioning of the Fund which helps reduce market and other portfolio risks. Various bond strategies may be employed to maximize return and manage risks. We may, in compliance with the applicable investment limits and restrictions imposed, temporarily adopt a more defensive attitude by holding more cash in the portfolio when we believe that the market or the economy is experiencing excessive volatility, a persistent general decline or other negative conditions. Accordingly, the indicative asset allocation of KDF will be as follows:


99


A composite of FTSE Bursa Malaysia 100 Index (60%) and RAM Quantshop MGS All Index (40%) obtainable from www.bursamalaysia.com and www.quantshop.com. This performance benchmark is selected to reflect the strategy of the Fund that aims to achieve capital appreciation through investments in equities, fixed income securities and money market instruments.





100

Kenanga Shariah Balanced Fund (KSBF)


Category of Fund : Islamic Balanced

Objective of KSBF

The Fund aims to achieve long-term* capital growth through diversified investments in equities, fixed income and money market instruments which are Shariah-compliant. Any material changes to the investment objective of the Fund would require the Unit Holders’ approval. Investors’ Profile

KSBF is suitable for investors who are seeking returns from a Shariah-compliant fund which has potentially lower volatility compared to an equity fund and have medium to long-term^ investment horizon. Principal Investment Strategies

The Fund aims to invest in a balanced mix between Shariah-compliant equities, sukuk and Islamic money market instruments. The Fund’s Shariah- compliant equity exposure ranges from 40% to 60% of the Fund’s NAV, with the remaining consisting of sukuk and Islamic money market instruments. The tactical asset allocation strategy between the different asset classes are reviewed on a monthly basis and is determined by analyzing economic factors, which influence the business cycle, as well as market factors including market psychology and valuations. For Shariah-compliant equity investments, the Fund employs the ‘price-for-growth’ approach. We adopt an actively managed strategy and a disciplined investment process whereby thorough research is undertaken and Shariah-compliant stocks are analyzed utilizing a fundamental top down and bottom up investment process. Shariah-compliant stocks are evaluated in a disciplined manner carefully balancing business outlook valuations, financial performance and management quality. For sukuk investments, the Fund’s strategy is based on the belief that fundamental economic and sector analysis drives long-term outperformance, and that active management of credit risk can produce consistently superior results than those produced through passive management. The sukuk investment process begins with thorough macro economic analysis. The analysis is used to position the portfolio with respect to duration, convexity and yield curve shape. The Fund adds value through the application of credit skills and interest rates anticipation, shifting duration, sector and credit exposures in the context of the expected economic and financial environment. On a bottom-up perspective, the Fund focuses on seeking adequate reward for any credit risks assumed. Here, the Fund may take advantage of sector rotation, issue selection and relative value positioning. We adopt an active management style to produce a diversified portfolio which aims to achieve steady capital growth. The volatility of the portfolio is expected to be lower than that of an equity portfolio. Investment filters and fundamental research helps mitigate market, stock-specific, credit and interest rate risks. Note: * Long-term refers to a period of 7 years and above. ^ Medium to long-term refers to a period of 5 years or longer.


We adopt an active investment management strategy which also incorporates risk management strategy. Investment filters and fundamental research helps mitigate market, stock-specific, credit and interest rate risks. Active management of portfolio allows tactical positioning of the Fund which helps reduce market and other portfolio risks. Various sukuk strategies may be employed to maximize return and manage risks. We may, in compliance with the applicable investment limits and restrictions imposed, temporarily adopt a more defensive attitude by holding more cash in the portfolio when we believe that the market or the economy is experiencing excessive volatility, a persistent general decline or other negative conditions. Accordingly, the indicative asset allocation of KSBF will be as follows:


101

40% - 60% of the Fund’s NAV - Shariah-compliant equities 40% - 60% of the Fund’s NAV - Sukuk/ Islamic money market instruments Performance benchmark

A composite of FTSE Bursa Malaysia Emas Shariah Index (50%) and RAM Quantshop Malaysian Government Investment Issue (50%).obtainable from www.bursamalaysia.com and www.quantshop.com. This performance benchmark is selected to reflect the objective of the Fund that aims to achieve long-term capital growth through diversified investments in equities, fixed income and money market instruments which are Shariah-compliant.





102



Category of Fund : Bond

Objective of KIPF

The Fund aims to provide investors with a regular income* stream through investments in bonds and money market instruments. Any material changes to the investment objective of the Fund would require the Unit Holders’ approval. Investors’ Profile

KIPF is suitable for investors who are seeking regular income*, have low to moderate risk tolerance and have short to medium-term¹ investment horizon. Principal Investment Strategies

The Fund’s strategy is based on the belief that fundamental economic and sector analysis drives long-term outperformance, and that active management of credit risk can produce consistently superior results than those produced through passive management. The investment process begins with thorough macro economic analysis. The analysis is used to position the portfolio with respect to duration, convexity and yield curve shape. The Fund adds value through the application of credit skills and interest rates anticipation, shifting duration, sector and credit exposures in the context of the expected economic and financial environment. On a bottom-up perspective, the Fund focuses on seeking adequate reward for any credit risks assumed. Here, the Fund may take advantage of sector rotation, issue selection and relative value positioning. The Fund emphasizes medium to long-term investment views and involves the application of relative value analysis to individual credits and industry sectors. The Fund invests in securities that have a minimum rating of “investment grade” i.e. rated at least BBB3 by RAM or equivalent rating by MARC or other rating agencies. In responding to adverse market conditions, economic, political or any other conditions, the portfolio manager will take positions and invest in assets that are consistent with the Fund’s objective. The Fund employs strategies such as overall portfolio duration and yield curve positioning to deal with market and reinvestment risks. Bond strategies employed can translate into a laddered, barbell or bullet portfolios. For investments in credits, a top-down allocation of corporate issuers in the portfolio and the selection of best-priced securities within a given credit rating can improve the performance of a credit portfolio. The Fund’s internal controls include asset allocation strategies to limit exposures in a single asset class. The Fund also imposes single-issuer limits to restrict over-investments in a single or group of companies i.e. issuer risks. Portfolio turnover and dealing limits control churning and over-trading with securities trade-counter parties. Functionally, investment management is separated from the trade processing and compliance units so that investments limits can be independently monitored and reported. In adverse market conditions, the Fund will remain true-to-label and within the mandate and asset allocation ranges. Note: * Income will be reinvested into additional Units into the Fund unless Unit Holders request for cheques to be sent

to them. 1 Short to medium-term refers to a period of 3 - 5 years.


The Fund employs strategies such as overall portfolio duration and yield curve positioning to deal with market and reinvestment risks. Bond strategies employed can translate into a laddered, barbell or bullet portfolios. For investments in credits, a bottom-up approach in selecting corporate issuers in the portfolio and the selection of


103

best-priced securities within a given credit rating can improve the performance of a credit portfolio. Should the rating of the corporate issuers fall below the minimum rating of “investment grade” i.e. rated at least BBB3 by RAM or equivalent rating by MARC or other rating agencies, we will try to dispose of the securities to the market, subject to pricing and liquidity of the securities. We will follow-up closely the development of the credit issue. The Fund’s internal controls include asset allocation strategies to limit exposures in a single asset class. The Fund also imposes single-issuer limits to restrict over-investments in a single or group of companies i.e. issuer risks. Portfolio turnover and dealing limits control churning and over-trading with securities trade-counter parties. Functionally, investment management is separated from the trade processing and compliance units so that investments limits can be independently monitored and reported. We may, in compliance with the applicable investment limits and restrictions imposed, temporarily adopt a more defensive attitude by holding more cash in the portfolio when we believe that the market or the economy are experiencing excessive volatility, a persistent general decline or other negative conditions. Accordingly, the indicative asset allocation of KIPF will be as follows:

50% - 98% of the Fund’s NAV - Fixed income securities 2% - 50% of the Fund’s NAV - Cash Performance benchmark

RAM Quantshop MGS All Index.obtainable from www.quantshop.com.




104



Category of Fund : Islamic Bond

Objective of KBIF

The Fund aims to provide investors with a regular income* stream through investments in Islamic bonds and Islamic money market instruments. Any material changes to the investment objective of the Fund would require the Unit Holders’ approval. Investors’ Profile

KBIF is suitable for investors who are seeking regular income* stream from sukuk, have low to moderate risk tolerance and have short to medium-term^ investment horizon. Principal Investment Strategies

The Fund invests in a diversified portfolio of sukuk and Islamic money market instruments. The Fund’s strategy is based on the belief that fundamental economic and sector analysis drives long-term outperformance, and that active management of credit risk can produce consistently superior results than those produced through passive management. Our investment strategy begins with a thorough macro economic analysis. The analysis is used to position the portfolio with respect to duration, convexity and yield curve shape. The Fund adds value through the application of credit skills and interest rates anticipation, shifting duration, sector and credit exposures in the context of the expected economic and financial environment. On a bottom-up perspective, the Fund focuses on seeking adequate reward for any credit risks assumed. Here, the Fund may take advantage of sector rotation, issue selection and relative value positioning. The Fund emphasizes medium to long-term investment views and involves the application of relative value analysis to individual credits and industry sectors. Fundamental and market analysis are used to identify overall portfolio, sukuk market sectors, yield curve and credit positioning to provide high and sustainable real rates of return. Investments in securities of this asset class are not restricted in terms of specific sector, type or duration. Various sukuk strategies may be employed to maximize return and manage risks. The Fund invests in sukuk that have a minimum rating of “investment grade” i.e. rated at least BBB3 by RAM or equivalent rating by MARC or other rating agencies. In responding to adverse market conditions, economic, political or any other conditions, the portfolio manager will take positions and invest in assets that are consistent with the Fund’s objective. The Fund employs strategies such as overall portfolio duration and yield curve positioning to deal with market and reinvestment risks. Sukuk strategies employed can translate into a laddered, barbell or bullet portfolios. For investments in credits, a top-down allocation of corporate issuers in the portfolio and the selection of best-priced sukuk within a given credit rating can improve the performance of a credit portfolio and reduce credit risk in the portfolio. The Fund’s internal controls include asset allocation strategies to limit exposures in a single asset class. The Fund also imposes single-issuer limits to restrict over-investments in a single or group of companies i.e. issuer risks. Portfolio turnover and dealing limits control churning and over-trading with Shariah-compliant securities trade-counter parties. Functionally, investment management is separated from the trade processing and compliance units so that investments limits can be independently monitored and reported. Note: * Income will be reinvested into additional Units into the Fund unless Unit Holders request for cheques to be sent

to them. ^ Short to medium-term refers to a period of 3 - 5 years.


The Fund employs strategies such as overall portfolio duration and yield curve positioning to deal with market and reinvestment risks. Sukuk strategies employed can translate into a laddered, barbell or bullet portfolios. For


105

investments in credits, a bottom-up approach in selecting corporate issuers in the portfolio and the selection of best-priced Shariah-compliant securities within a given credit rating can improve the performance of a credit portfolio. Should the rating of the corporate issuers fall below the minimum rating of “investment grade” i.e. rated at least BBB3 by RAM or equivalent rating by MARC or other rating agencies, we will try to dispose of the Shariah-compliant securities to the market, subject to pricing and liquidity of the Shariah-compliant securities. We will follow-up closely the development of the credit issue. The Fund’s internal controls include asset allocation strategies to limit exposures in a single asset class. The Fund also imposes single-issuer limits to restrict over-investments in a single or group of companies i.e. issuer risks. Portfolio turnover and dealing limits control churning and over-trading with Shariah-compliant securities trade-counter parties. Functionally, investment management is separated from the trade processing and compliance units so that investments limits can be independently monitored and reported. We may, in compliance with the applicable investment limits and restrictions imposed, temporarily adopt a more defensive attitude by holding more cash in the portfolio when we believe that the market or the economy are experiencing excessive volatility, a persistent general decline or other negative conditions. Accordingly, the indicative asset allocation of KBIF will be as follows:

50% - 98% of the Fund’s NAV - Sukuk 2% - 50% of the Fund’s NAV - Cash Performance benchmark

RAM Quantshop Malaysian Government Investment Issue obtainable from www.quantshop.com.




106

PERMITTED INVESTMENTS


1. Securities of companies listed on the Bursa Malaysia; 2. Units or shares of collective investment schemes; 3. Securities traded in a foreign market subject to the provisions in the Guidelines;

4. Unlisted securities of Malaysian corporations;

5. MGS, treasury bills, Bank Negara Malaysia certificates, and government investment certificates;

6. Malaysian currency deposits with financial institutions including negotiable certificates of deposit;

7. Cagamas bonds, bankers’ acceptances and unlisted loan stocks which are traded in the money market and

are either bank guaranteed or carry at least BBB3 rating by RAM and private debt securities which are rated at least BBB3 by RAM; and

8. Any other form of investments as may be permitted by the SC from time to time. Kenanga Growth Fund (KGF)

1. Securities of companies listed on the Bursa Malaysia;

2. Units or shares in other collective investment schemes (these can be related or unrelated); 3. Unlisted equities and unlisted warrants, provided always that the issuers of such securities must be

incorporated in Malaysia and provided further that the Fund has appropriate policies and procedures for the valuation of such securities;

4. MGS, treasury bills, Bank Negara Malaysia certificates and government investment certificates; 5. Malaysian currency deposits with commercial banks, investment banks and Bank Islam Malaysia Berhad

including negotiable certificates of deposit; 6. Cagamas bonds, bankers’ acceptance and unlisted loan stocks which are traded in the money markets and

are either bank guaranteed or carry at least BBB3 rating by the RAM and private debt securities which are rated at least BBB3 by RAM; and

7. Any other form of investments as may be permitted by the SC from time to time. Kenanga Islamic Fund (KIF)

1. Shariah-compliant securities of companies listed on the Bursa Malaysia; 2. Shariah-compliant securities not traded that have been approved by the relevant authorities for listing and

quotation on Bursa Malaysia, which are offered directly by the company approved for listing by way of private placement or a tender basis and as approved by the SACSC and/or Shariah adviser;

3. Government investment issue (GII), Islamic accepted bills, Bank Negara monetary notes-i, Cagamas sukuk

and other obligation issued or guaranteed by the Malaysian government, Bank Negara Malaysia and other government-related agencies that comply with Shariah requirements;

4. Shariah-compliant securities traded on Eligible Markets and/or approved stock exchanges; 5. Traded Islamic money-market instruments in the money market; 6. Ringgit-denominated Islamic deposits placed with financial institutions and placement of money at call with

financial institutions that comply with Shariah requirements; 7. Any other forms of Shariah-compliant investments as may be agreed upon by the Manager and the Trustee

from time to time and permitted by the relevant authorities, where necessary; 8. Islamic futures contracts and options traded in the futures and options market of an exchange approved

under the Act for hedging purposes as approved by the SACSC and/or the Shariah adviser;


107

9. Foreign Shariah-compliant securities of an approved foreign markets approved by the SACSC and/ or the

Shariah adviser; and 10. Any other kind of Shariah-compliant investment instruments approved by the SACSC and/or Shariah adviser. Kenanga Syariah Growth Fund (KSGF)

1. Shariah-compliant securities of Malaysian companies listed on the Bursa Malaysia; 2. Units of Islamic real estate investment trusts (REITs) listed on the Bursa Malaysia; 3. Government Investment Issues (GII); 4. Islamic deposits (Malaysian currency) with Islamic banks or other financial institutions including investment

certificates; 5. Unlisted Shariah-compliant securities that are approved by the SC for the listing and quotation on Bursa

Malaysia, which are offered directly by the company approved for listing, by way of private placement or on a tender basis;

6. Islamic accepted bill, Cagamas Mudharabah Bond or other sukuk which are carrying at least BBB3 rating by

RAM; and 7. Any other kinds of Shariah-compliant investments as may be allowed by the relevant authorities from time to

time. In conformity with Shariah requirements, the securities of companies engaged in the following activities or producing the following categories of products shall not be included in the portfolio of the Fund:- 1. All conventional banking, insurance and financial services; 2. Gaming; 3. Alcoholic beverages; 4. Non-halal food products; 5. Interest bearing money market instruments; and 6. Any further restrictions as may be determined by the SACSC and/or the Fund’s Shariah adviser from time to

time. Kenanga Asia Pacific Total Return Fund (KAPTRF)

1. Equities and warrants traded in or under the rules of an Eligible Market; 2. Unlisted securities including securities not listed or quoted on a stock exchange but have been approved by

the relevant regulatory authority for such listing or quotation and are offered directly to the Fund by the issuer; 3. Deposits and money market instruments; 4. Derivative instruments, including but not limited to options, futures contracts, forward contracts and swaps, for

hedging purposes; 5. All types of collective investment schemes (both local and foreign); and 6. Any other form of investments as may be agreed upon by the Manager and the Trustee from time to time. Kenanga Balanced Fund (KBF)

1. Securities of Malaysian companies listed on an approved stock exchange; 2. Units of unrelated property trust funds listed on an approved stock exchange;


108

3. MGS, treasury bills, Bank Negara Malaysia certificates, government investment certificates and any other treasury products guaranteed by the Malaysian government, Bank Negara Malaysia or other government or government related agencies;

4. Fixed deposits, money market instruments and any other treasury products; 5. Cagamas bonds, bankers’ acceptances and unlisted loan stocks which are traded in the money market and are

either bank guaranteed or carry at least BBB3 rating by the RAM and private debt securities which are rated at least BBB3 by RAM;

6. Securities listed on a foreign stock exchange; 7. Securities that are not traded in or under the rules of an Eligible Market, whether or not approved by the SC for

listing and quotation on an approved stock exchange and which are offered directly by the company to the Fund; 8. Futures contracts traded in the futures market of an exchange approved under the Act (for hedging purposes

only); 9. Units/shares of other collective investment schemes; and 10. Any other kind of investments as may be agreed upon by the Manager and the Trustees from time to time, and

permitted by the SC and/or any other relevant authorities where necessary. Kenanga Islamic Balanced Fund (KIBF)

1. Shariah-compliant securities of companies listed on Bursa Malaysia; 2. Shariah-compliant securities not traded that have been approved by the relevant authorities for listing and

quotation on Bursa Malaysia, which are offered directly by the company approved for listing by way of private placement or a tender basis and as approved by the SACSC and/or the Shariah adviser;

3. Government investment issues (GII), Islamic accepted bills, Bank Negara monetary notes-i, Cagamas sukuk and

other obligations issued or guaranteed by the Malaysian government, Bank Negara Malaysia and other government-related agencies that comply with Shariah requirements;

4. Shariah-compliant securities traded on Eligible Markets and/or approved stock exchanges; 5. Tradable Islamic money-market instruments in the money market; 6. Ringgit-denominated Islamic deposits placed with licensed financial institutions; 7. Islamic futures contracts and options traded in the futures and options market of an exchange approved under the

Act for hedging purposes as approved by the SACSC and/or the Shariah adviser; 8. Foreign Shariah-compliant securities approved by the Shariah adviser; and 9. Any other forms of Shariah-compliant investments as may be agreed upon by the Manager and the Trustee from

time to time and permitted by the relevant authorities, where necessary. Kenanga Bond Fund (KBNF)

The Fund may invest in the following investments subject to the relevant laws and in accordance with the Fund’s objective: 1. Fixed income securities/instruments listed on approved stock exchanges, which are either bank-guaranteed or

are rated at least BBB or P2 by RAM and/or such other recognized rating agencies; 2. Unlisted fixed income securities/instruments, which are either bank-guaranteed or are rated at least BBB or P2 by

RAM and/or recognized rating agencies; 3. MGS, treasury bills, Bank Negara Malaysia certificates, government investment certificates and any other

treasury products guaranteed by the Malaysian government, Bank Negara Malaysia or other government or government related agencies;

4. Fixed deposits, money market instruments and any other treasury products; 5. Listed foreign fixed securities and corporate bonds with at least a BBB rating by Standard & Poor or Moody’s or


109

its equivalent; 6. Unlisted foreign loan stocks and corporate bonds with at least an AA rating by Standard & Poor or its equivalent; 7. Securities that are not traded in or under the rules of an Eligible Market, whether or not approved by the SC for

listing and quotation on an approved stock exchange and which are offered directly by the company to the Fund; 8. Futures contracts traded in the futures market of an exchange approved under the Act (for hedging purposes

only); 9. Units/shares of other collective investment schemes; and 10. Any other kind of investments as may be agreed upon by the Manager and the Trustee from time to time, and

permitted by the SC and/or any other relevant authorities where necessary. Kenanga Malaysian Inc Fund (KMIF)

1. Securities of Malaysian companies listed on the Bursa Malaysia; 2. Unlisted securities approved or exempt stock market declared by the Minister under the Act, which are offered

directly to the scheme; 3. Banker’s acceptances and other tradable money-market instruments in the money market; 4. Ringgit-denominated deposits placed with financial institutions; 5. Futures contracts and options traded in the futures and options market of an exchange approved under the Act for

hedging purposes; 6. Units or shares in other collective investment schemes; and 7. Any other investments permitted by the relevant authorities from time to time. Kenanga Islamic Money Market Fund (KIMMF)

1. Islamic debentures; 2. Islamic money market instruments; 3. Sukuk; and 4. Any other Shariah-compliant investments permitted by the relevant authorities from time to time. Kenanga Money Market Fund (KMMF)

1. Debentures; 2. Money market instruments; 3. Placements of deposits with financial institutions; and 4. Any other investments permitted by the relevant authorities from time to time. Kenanga Cash Plus Fund (KCPF) and Kenanga Income Plus Fund (KIPF)

1. Transferable securities (i.e. debentures); 2. Cash, deposits and money market instruments; 3. Units/shares in collective investment schemes; 4. Derivatives for hedging purposes; 5. Unlisted securities; and 6. Any other form of investments permitted by the SC from time to time.


110

Kenanga i-Enhanced Cash Fund (KIECF)

1. Government investment issues, Islamic accepted bills, Bank Negara negotiable notes-i, Islamic negotiable

instrument, Cagamas sukuk and any other government Islamic papers;

2. Other obligations issued or guaranteed by the Malaysian government, Bank Negara Malaysia, state governments and government related agencies that are Shariah-compliant;

3. Unlisted Shariah-compliant securities which are traded over the counter; 4. Placement of Islamic deposits with financial institutions and Islamic money market instruments; 5. Corporate sukuk traded in Islamic money market with a minimum credit rating of P2 or A3 by RAM or its

equivalent credit rating by MARC; 6. Units or shares in other Shariah-compliant collective investment schemes; 7. Islamic futures contracts and other approved Shariah-compliant derivatives instruments traded in futures

market of an exchange approved under the Act, subject to approval by the SACSC and/or the Shariah adviser; and

8. Any other Shariah-compliant investments approved by the SACSC and/or the Shariah adviser from time to

time. Kenanga Blue Chip Fund (KBCF), Kenanga Growth Opportunities Fund (KGOF), Kenanga Managed Growth Fund (KMGF) and Kenanga Diversified Fund (KDF)

1. Transferable securities; 2. Cash, deposits and money market instruments; 3. Units/shares in collective investment schemes; 4. Derivatives for hedging purposes; 5. Unlisted securities; 6. Participation in lending of securities within the Guidelines on Securities Borrowing and Lending; and 7. Any other form of investments permitted by the SC from time to time. Kenanga Shariah Growth Opportunities Fund (KSGOF), Kenanga Ekuiti Islam Fund (KEIF) and Kenanga Shariah Balanced Fund (KSBF)

1. Transferable Shariah-compliant securities; 2. Cash, Islamic deposits and Islamic money market instruments; 3. Units/shares in Shariah-compliant collective investment schemes; 4. Shariah-compliant derivatives for hedging purposes; 5. Unlisted sukuk; 6. Participation in lending of Shariah-compliant securities within the Guidelines on Securities Borrowing and

Lending; and 7. Any other form of Shariah-compliant investments permitted by the SC from time to time. Kenanga Bon Islam Fund (KBIF)

1. Transferable Shariah-compliant securities (i.e. Islamic debentures); 2. Cash, Islamic deposits and Islamic money market instruments; 3. Units/shares in Shariah-compliant collective investment schemes;


111

4. Shariah-compliant derivatives for hedging purposes; 5. Unlisted sukuk; and 6. Any other form of Shariah-compliant investments permitted by the SC from time to time. INVESTMENT RESTRICTIONS AND LIMITS


1. The value of the Fund’s investments in unlisted securities must not exceed 10% of the Fund’s NAV. 2. The value of the Fund’s investments in ordinary shares issued by any single issuer must not exceed 10% of

the Fund’s NAV. 3. The value of the Fund’s investments in transferable securities and money market instruments issued by any

single issuer must not exceed 15% of the Fund’s NAV. 4. The value of the Fund’s placement in deposits with any single institution must not exceed 20% of the Fund’s

NAV. 5. For investment in derivatives, the exposure to the underlying assets must not exceed the investment spread

limits stipulated in the Guidelines and the value of the Fund’s over-the-counter (OTC) derivative transaction with any single counter-party must not exceed 10% of the Fund’s NAV.

6. The aggregate value of the Fund’s investments in transferable securities, money market instruments, deposits,

OTC derivatives and structured products issued by or placed with (as the case may be) any single issuer/institution must not exceed 25% of the Fund’s NAV.

7. The value of the Fund’s investments in units/shares of any collective investment scheme must not exceed 20%

of the Fund’s NAV. 8. The value of the Fund’s investments in transferable securities and money market instruments issued by any

group of companies must not exceed 20% of the Fund’s NAV. 9. The Fund’s investments in transferable securities (other than debentures) must not exceed 10% of the

securities issued by any single issuer. 10. The Fund’s investments in debentures must not exceed 20% of the debentures issued by any single issuer. 11. The Fund’s investments in money market instruments must not exceed 10% of the instruments issued by any

single issuer. However, this limit does not apply to money market instruments that do not have a pre-determined issue size.

12. The Fund’s investments in collective investment schemes must not exceed 25% of the units/shares in any one

collective investment scheme. 13. The Fund’s investment in foreign markets must not exceed 30% of the Fund’s NAV. Kenanga Growth Fund (KGF)

1. The value of the Fund’s investments in ordinary shares issued by any single issuer must not exceed 10% of


single issuer must not exceed 15% of the Fund’s NAV. 3. The value of the Fund’s placements in deposits with any single financial institution must not exceed 20% of the

Fund’s NAV. 4. The value of the Fund’s investments in transferable securities and money market instruments issued by any

group of companies must not exceed 20% of the Fund’s NAV. 5. The Fund’s investments in transferable securities (other than debentures) issued by any single issuer must not

exceed 10% of the securities issued.


112

6. The Fund’s investments in Islamic debentures must not exceed 20% of the debentures issued by any single issuer.

7. The value of the Fund’s investments in unlisted securities must not exceed 10% of the Fund’s NAV. 8. The aggregate value of the Fund’s investments in transferable securities, money market instruments and

deposits issued or placed with (as the case may be) any single issuer/institution must not exceed 25% of the Fund’s NAV.

9. A Fund’s investments in money market instruments must not exceed 10% of the instruments issued by any

single issuer. This limit does not apply to money market instruments that do not have a pre-determined issue size.


of the Fund’s NAV. 11. A Fund’s investments in collective investment schemes must not exceed 25% of the units/shares in any one

collective investment scheme. Kenanga Islamic Fund (KIF)

1. The value of the Fund’s investments in unlisted Shariah-compliant securities must not exceed 10% of the

Fund’s NAV. 2. The value of the Fund’s investments in Shariah-compliant ordinary shares issued by any single issuer must not

exceed 10% of the Fund’s NAV. 3. The value of the Fund’s investments in transferable Shariah-compliant securities and Islamic money market

instruments issued by any single issuer must not exceed 15% of the Fund’s NAV. 4. The value of the Fund’s placement in Islamic deposits with any single institution must not exceed 20% of the

Fund’s NAV. 5. For investment in Shariah-compliant derivatives, the exposure to the underlying assets must not exceed the

investment spread limits stipulated in the Guidelines and the value of a Fund’s over-the-counter (OTC) Shariah-compliant derivative transaction with any single counter-party must not exceed 10% of the Fund’s NAV.

6. The aggregate value of the Fund’s investments in transferable Shariah-compliant securities, Islamic money

market instruments, Islamic deposits and OTC Shariah-compliant derivatives issued by or placed with (as the case may be) any single issuer/institution must not exceed 25% of the Fund’s NAV.

7. The value of the Fund’s investments in transferable Shariah-compliant securities and Islamic money market

instruments issued by any group companies must not exceed 20% of the Fund’s NAV. 8. The Fund’s investments in transferable Shariah-compliant securities (other than Islamic debentures) must not

exceed 10% of the Shariah-compliant securities issued by any single issuer. 9. The Fund’s investments in Islamic debentures must not exceed 20% of the Islamic debentures issued by any

single issuer. 10. The Fund’s investments in Islamic money market instruments must not exceed 10% of the instruments issued

by any single issuer. However, this limit does not apply to Islamic money market instruments that do not have a pre-determined issue size.

11. The value of the Fund’s investments in units/shares of any Shariah-compliant collective investment scheme

must not exceed 20% of the Fund’s NAV. 12. The Fund’s investments in any Shariah-compliant collective investment schemes must not exceed 25% of the

units/shares in any one Shariah-compliant collective investment scheme. 13. All the Fund’s investments have to be Shariah-compliant. 14. The Fund’s investment in foreign markets must not exceed 30% of the Fund’s NAV.


113

Kenanga Syariah Growth Fund (KSGF)

1. The value of the Fund’s investments in ordinary Shariah-compliant shares issued by any single issuer must not

exceed 10% of the Fund’s NAV. 2. The value of the Fund’s investments in transferable Shariah-compliant securities and Islamic money market

instruments issued by any single issuer must not exceed 15% of the Fund’s NAV. 3. The value of the Fund’s placements in Islamic deposits with any single financial institution must not exceed

50% of the Fund’s NAV if the Fund’s NAV is less than RM10 million (see section 16 at page 233). 4. The value of the Fund’s investments in transferable Shariah-compliant securities and Islamic money market

instruments issued by any group of companies must not exceed 20% of the Fund’s NAV. 5. The Fund’s investments in Shariah-compliant transferable securities (other than Islamic debentures) issued by

any single issuer must not exceed 10% of the Shariah-compliant securities issued. 6. The Fund’s investments in Islamic debentures must not exceed 20% of the Islamic debentures issued by any

single issuer. 7. The value of the Fund’s investments in unlisted Shariah-compliant securities must not exceed 10% of the

Fund’s NAV. 8. The aggregate value of the Fund’s investments in transferable Shariah-compliant securities, Islamic money

market instruments and Islamic deposits issued or placed with (as the case may be) any single issuer/ institution must not exceed 25% of the Fund’s NAV.

9. The Fund’s investments in Islamic money market instruments must not exceed 10% of the instruments issued

by any single issuer. This limit does not apply to Islamic money market instruments that do not have a pre-determined issue size.

10. The value of the Fund’s investments in units/shares of any Shariah-compliant collective investment scheme

must not exceed 20% of the Fund’s NAV. 11. A Fund’s investments in Shariah-compliant collective investment schemes must not exceed 25% of the

units/shares in any one Shariah-compliant collective investment scheme. Kenanga Asia Pacific Total Return Fund (KAPTRF)







OTC derivatives and structured products (if applicable) issued by or placed with (as the case may be) any single issuer/institution must not exceed 25% of the Fund’s NAV.




securities issued by any single issuer.


114

10. The Fund’s investments in money market instruments must not exceed 10% of the instruments issued by any single issuer. However, this limit does not apply to money market instruments that do not have a pre-determined issue size.


collective investment scheme. Kenanga Balanced Fund (KBF)














collective investment scheme. 13. The Fund’s investment in foreign markets must not exceed 30% of the Fund’s NAV. Kenanga Islamic Balanced Fund (KIBF)

1. The value of the Fund’s investments in unlisted Shariah-compliant securities must not exceed 10% of the

Fund’s NAV. 2. The value of the Fund’s investments in Shariah-compliant ordinary shares issued by any single issuer must

not exceed 10% of the Fund’s NAV. 3. The value of the Fund’s investments in transferable Shariah-compliant securities and Islamic money market

instruments issued by any single issuer must not exceed 15% of the Fund’s NAV. 4. The value of the Fund’s placement in Islamic deposits with any single institution must not exceed 20% of the

Fund’s NAV. 5. For investment in Shariah-compliant derivatives, the exposure to the underlying assets must not exceed the

investment spread limits stipulated in the Guidelines and the value of the Fund’s over-the-counter (OTC) Shariah-compliant derivative transaction with any single counter-party must not exceed 10% of the Fund’s NAV.


115

6. The aggregate value of the Fund’s investments in transferable Shariah-compliant securities, Islamic money market instruments, Islamic deposits, OTC Shariah-compliant derivatives and Islamic structured products issued by or placed with (as the case may be) any single issuer/institution must not exceed 25% of the Fund’s NAV.

7. The value of the Fund’s investments in transferable Shariah-compliant securities and Islamic money market

instruments issued by any group of companies must not exceed 20% of the Fund’s NAV. 8. The Fund’s investments in transferable Shariah-compliant securities (other than Islamic debentures) must not

exceed 10% of the Shariah-compliant securities issued by any single issuer. 9. The Fund’s investments in Islamic debentures must not exceed 20% of the Islamic debentures issued by any

single issuer. 10. The Fund’s investments in Islamic money market instruments must not exceed 10% of the instruments issued

by any single issuer. However, this limit does not apply to Islamic money market instruments that do not have a pre-determined issue size.

11. All the Fund’s investments have to be Shariah-compliant. 12. The Fund’s investment in foreign markets must not exceed 30% of the Fund’s NAV. Kenanga Bond Fund (KBNF)

1. The value of the Fund’s investments in unlisted securities must not exceed 10% of the Fund’s NAV. 2. The value of the Fund’s investments in debentures issued by any single issuer must not exceed 20% of the

Fund’s NAV. 3. The value of the Fund’s investments in debentures issued by any single issuer may be increased to 30% of the

Fund’s NAV if the debentures are rated by any domestic or global rating agency to be of the best quality and offer highest safety for timely payment of interest and principal.

4. The value of the Fund’s investments in debentures issued by any one group of companies must not exceed 30% of the Fund’s NAV.

5. The value of the Fund’s placement in deposits with any single institution must not exceed 20% of the Fund’s

NAV. 6. The aggregate value of the Fund’s investments in transferable securities, money market instruments, deposits,

OTC derivatives and structured products issued by or placed with (as the case may be) any single issuer/institution must not exceed 25% of the Fund’s NAV. Where the single issuer limit for the Fund’s investments in debentures is increased to 30% of the Fund’s NAV as explained in point 3 above, the aggregate value of the Fund’s investments in transferable securities, money market instruments, deposits, OTC derivatives and structured products issued by or placed with (as the case may be) any single issuer/institution must not exceed 30% of the Fund’s NAV.


of the Fund’s NAV. 8. The Fund’s investments in debentures must not exceed 20% of the debentures issued by any single issuer. 9. The Fund’s investments in money market instruments must not exceed 10% of the instruments issued by any



collective investment scheme. 11. The Fund’s investment in foreign markets must not exceed 30% of the Fund’s NAV. Kenanga Malaysian Inc Fund (KMIF)


the Fund’s NAV.


116

3. The value of the Fund’s investments in transferable securities and money market instruments issued by any single issuer must not exceed 15% of the Fund’s NAV.

4. The value of the Fund’s placement in deposits with any single institution must not exceed 20% of the Fund’s











collective investment scheme. 13. The Fund’s investment in foreign markets must not exceed 30% of the Fund’s NAV. Kenanga Islamic Money Market Fund (KIMMF)

1. The value of the Fund’s investments in permitted investments must not be less than 90% of the Fund’s NAV. 2. The value of the Fund’s investments in permitted investments which have a remaining maturity period of not

more than 365 days must not be less than 90% of the Fund’s NAV. 3. The value of the Fund’s investments in permitted investments which have a remaining maturity period of more

than 365 days but fewer than 732 days must not exceed 10% of the Fund’s NAV. 4. The value of the Fund’s investments in Islamic debentures and Islamic money market instruments issued by

any single issuer must not exceed 20% of the Fund’s NAV. 5. The value of the Fund’s investments in Islamic debentures and Islamic money market instruments issued by

any single issuer may be increased to 30% if the Islamic debentures are rated by any domestic or global rating agency to be of the best quality and offer highest safety for timely payment of profit and principal.

6. The value of the Fund’s placement in Islamic deposits with any single financial institution must not exceed 20%

of the Fund’s NAV. 7. The value of the Fund’s investments in Islamic debentures and Islamic money market instruments issued by

any group of companies must not exceed 30% of the Fund’s NAV. 8. The Fund’s investments in Islamic debentures must not exceed 20% of the securities issued by any single

issuer. 9. The Fund’s investments in Islamic money market instruments must not exceed 20% of the instruments issued

by any single issuer. 10. Islamic liquid assets must be held in the form of cash, Islamic deposits with financial institutions or any other

instrument capable of being converted into cash within 7 days (as may be approved by the Trustee).


117


1. The value of the Fund’s investments in permitted investments must not be less than 90% of the Fund’s NAV. 2. The value of the Fund’s investments in permitted investments which have a remaining maturity period of not more

than 365 days must not be less than 90% of the Fund’s NAV. 3. The value of the Fund’s investments in permitted investments which have a remaining maturity period of more than

365 days but fewer than 732 days must not exceed 10% of the Fund’s NAV. 4. The value of the Fund’s investments in debentures and money market instruments issued by any single issuer

must not exceed 20% of the Fund’s NAV. 5. The value of the Fund’s investments in debentures and money market instruments issued by any single issuer may

be increased to 30% if the debentures are rated by any domestic or global rating agency to be of the best quality and offer highest safety for timely payment of interest and principal.

6. The value of the Fund’s placement in deposits with any single institution must not exceed 20% of the Fund’s NAV. 7. The value of the Fund’s investments in debentures and money market instruments issued by any group of

companies must not exceed 30% of the Fund’s NAV. 8. The Fund’s investments in debentures must not exceed 20% of the securities issued by any single issuer. 9. The Fund’s investments in money market instruments must not exceed 20% of the instruments issued by any

single issuer. 10. Liquid assets must be held in the form of cash, deposits with financial institutions or any other instrument capable

of being converted into cash within 7 days (as may be approved by the Trustee). Kenanga Cash Plus Fund (KCPF), Kenanga i-Enhanced Cash Fund (KIECF), Kenanga Income Plus Fund (KIPF) and Kenanga Bon Islam Fund (KBIF)

1. The value of a Fund’s investments in unlisted securities must not exceed 10% of the Fund’s NAV. 2. The value of a Fund’s investments in debentures issued by any single issuer must not exceed 20% of the

Fund’s NAV. 3. The single issuer limit in (2) may be increased to 30% if the debentures are rated by any domestic or global

rating agency to be of the best quality and offer highest safety for timely payment of interest/profit and principal.

4. The value of a Fund’s investments in debentures issued by any one group of companies must not exceed 30%

of the Fund’s NAV. 5. The value of a Fund’s placement in deposits with any single licensed institution must not exceed 20% of the

Fund’s NAV. 6. For investments in derivative:-

the exposure to the underlying assets must not exceed the investment spread limits stipulated in the Guidelines;

the value of a Fund’s over-the-counter (OTC) derivative transaction with any single counterparty must not exceed 10% of the Fund’s NAV.

7. The aggregate value of a Fund’s investments in transferable securities, money market instruments, deposits,

OTC derivatives and structured products issued by or placed with (as the case may be) any single issuer/institution must not exceed 25% of the Fund’s NAV. When the single issuer limit for debentures is increased to 30%, the value referred to here must not exceed 30% of the Fund’s NAV.

8. The value of a Fund’s investments in units/shares of any collective investment scheme must not exceed 20%

of the Fund’s NAV. 9. A Fund’s investments in debentures must not exceed 20% of the debentures issued by any single issuer. 10. A Fund’s investments in money market instruments must not exceed 10% of the instruments issued by any



118

11. A Fund’s investments in collective investment schemes must not exceed 25% of the units/shares in any 1

collective investment scheme. Kenanga Blue Chip Fund (KBCF), Kenanga Growth Opportunities Fund (KGOF), Kenanga Shariah Growth Opportunities Fund (KSGOF), Kenanga Ekuiti Islam Fund (KEIF), Kenanga Managed Growth Fund (KMGF), Kenanga Diversified Fund (KDF) and Kenanga Shariah Balanced Fund (KSBF)

1. The value of a Fund’s investments in unlisted securities must not exceed 10% of the Fund’s NAV. 2. The value of a Fund’s investments in ordinary shares issued by any single issuer must not exceed 10% of the

Fund’s NAV. 3. The value of a Fund’s investments in transferable securities and money market instruments issued by any

single issuer must not exceed 15% of the Fund’s NAV. 4. The value of a Fund’s placement in deposits with any single licensed institution must not exceed 20% of the

Fund’s NAV. 5. For investments in derivative:

the exposure to the underlying assets must not exceed the investment spread limits stipulated in the Guidelines;

the value of a Fund’s over-the-counter (OTC) derivative transaction with any single counterparty must not exceed 10% of the Fund’s NAV.

6. The aggregate value of a Fund’s investments in transferable securities, money market instruments, deposits

and OTC derivatives issued by or placed with (as the case may be) any single issuer/institution must not exceed 25% of the Fund’s NAV.

7. The value of a Fund’s investments in units/shares of any collective investment scheme must not exceed 20%

of the Fund’s NAV. 8. The value of a Fund’s investments in transferable securities and money market instruments issued by any

group of companies must not exceed 20% of the Fund’s NAV. 9. A Fund’s investments in transferable securities (other than debentures) must not exceed 10% of the securities

issued by any single issuer. 10. A Fund’s investments in debentures must not exceed 20% of the debentures issued by any single issuer. 11. A Fund’s investments in money market instruments must not exceed 10% of the instruments issued by any


12. A Fund’s investments in collective investment schemes must not exceed 25% of the units/shares in any 1

collective investment schemes. 13. There will be no restrictions and limits for securities/instruments issued or guaranteed by the Malaysian

government or Bank Negara Malaysia. Applicable to Kenanga Shariah Balanced Fund (KSBF):

(i) The value of a Fund’s investments in Islamic structured products issued by a single counterparty must not exceed 15% of the Fund’s NAV.

(ii) The aggregate value of a Fund’s investments in transferable Shariah-compliant securities, Islamic

money market instruments, Islamic deposits, OTC Shariah-compliant derivatives and Islamic structured products issued by or placed with (as the case may be) any single issuer/institution must not exceed 25% of the Fund’s NAV.

The above stated limits and restrictions shall be complied with at all times based on the most up-to-date value of the Fund’s investments and instruments. However, a 5% allowance in excess of any limits or restrictions may be permitted where the limit or restriction is breached through the appreciation or depreciation in value of the NAV of the Fund (as a result of an appreciation or depreciation in value of investments or as a result of the purchase of Units or payment made from the Fund). Once the relevant limit is breached, no further acquisitions of the particular securities involved shall be made and the Manager should, within a reasonable period of not more than three (3) months from the date of the breach, take all necessary steps and actions to rectify the breach.


119

There are no restrictions and limits imposed on securities or instruments issued or guaranteed by the Malaysian government or Bank Negara Malaysia. BASES FOR VALUATION AND VALUATION FOR THE FUND

Bases for Valuation

In undertaking any of its investments, the Manager will ensure that all the assets of the Fund will be valued appropriately, i.e. at fair market value and at all times in compliance with the Guidelines.

Investment Instruments

Valuation Basis

Securities or Shariah-compliant Securities Listed on Any Exchange

Market price However, if: a valuation based on the market price does not represent the fair value of

the securities or Shariah-compliant securities, e.g. during abnormal market conditions; or

no market price is available, including in the event of a suspension in the quotation of the securities or Shariah-compliant securities for a period exceeding fourteen (14) days, or such shorter period as agreed by the Trustee,

then the securities or Shariah-compliant securities should be valued at fair value, as determined in good faith by the Manager based on the methods or bases approved by the Trustee after appropriate technical consultation.

Securities or Shariah-compliant Securities Not Traded In or Under the Rules of an Eligible Market

Fair value should be determined on methods or bases which have been verified by the auditors of the Fund and approved by the Trustee.

Fixed Income Securities or Debentures or Sukuk

Unquoted debt securities or sukuk denominated in Ringgit Malaysia will be valued on a daily basis based on fair value prices quoted by a bond pricing agency (BPA) registered with the SC. If the Manager is of the view that the price quoted by the BPA for a specific bond or sukuk differs from the market price by more than 20 basis points, the Manager may use the market price provided that the Manager adheres to the requirements as stipulated in the Guidelines.

Malaysian Currency Liquid Assets or Islamic Liquid Assets

Nominal value.

Foreign Currency Liquid Assets or Islamic Liquid Assets

Same basis as Malaysian currency liquid assets or Islamic liquid assets of similar type, with such adaptations as are necessary.

Financial Futures or Islamic Financial Futures

Investments in financial futures or Islamic financial futures are valued at marked to market at the end of each trading day.

Money Market Instruments or Islamic Money Market Instruments

Investments in conventional or Shariah-compliant financial instruments such as banker acceptance, Islamic accepted bills, Bank Negara monetary notes or Bank Negara monetary notes-i, negotiable certificate of deposits or Islamic negotiable instruments or other short-term financial instruments issued by government or government-related agencies are valued each day by reference to the value of such investments and the profits accrued thereon for the relevant period.


120

Investment Instruments

Valuation Basis

Collective Investment Scheme or Shariah-compliant Collective Investment Scheme

Investments in collective investment schemes or Shariah-compliant collective investment schemes will be valued, based on the last published net asset value per unit or share of such collective investment scheme or Shariah-compliant collective investment schemes. In the case of unlisted collective investment schemes or Shariah-compliant collective investment schemes, the valuation will be based on the last published repurchase price.

Financial Options or Islamic Financial Options

Investments in financial options or Islamic financial options are valued at marked to market at the end of each trading day.

Any Other Instruments or Shariah-compliant Instruments

Fair value as determined in good faith by the Manager, on methods or bases which have been verified by the auditors of the Fund and approved by the Trustee.

Derivatives or Structured Products

Valuation of derivatives or structured products is classified as financial assets and is measured at Fair Value through Profit and Loss, “FVTPL”. The financial instruments are marked to market using valuation prices quoted by the derivatives or structured products provider. The fair values of the financial assets are valued at least once a week. Any unrealized gains or losses comprise changes in fair value of the financial instruments are reported immediately on the statement of comprehensive income.

Valuation for the Fund

The Fund must be valued at least once every Business Day. The Guidelines also requires a valuation of the Fund to be carried out in a fair and accurate manner. The Fund adopts a forward pricing basis which means that prices of Units will be calculated based on the NAV of the Fund at a valuation point in the future, i.e. the next valuation point. The valuation point for the Fund is at 5 p.m. every Business Day. If the Fund has investments in foreign markets, the valuation of the Fund will be done only on T+1 day due to the different time zones of foreign markets. Accordingly, if applications for Units or requests for repurchase are received before the cut-off time of 4.00 p.m. on a Business Day, say, 2 July 2012, the Manager will process the applications using the price of the Units for that Business Day, 2 July 2012. The price of the Units for 2 July 2012 will be calculated on the following Business Day, 3 July 2012 based on the market closing on 2 July 2012. Accordingly, applications for Units or requests for redemption received after the cut-off time of 4.00 p.m. on the Business Day will only be processed on the next Business Day. If you want to know the latest prices of the Units, please contact us directly (for contact details, please refer to the Directory of the Manager’s Offices and List of IUTA at page 8 or refer to our website www.KenangaInvestors.com.my). Note: Valuation point is the particular point in time on a Business Day, as the Manager may decide, at which the

NAV of the Fund is calculated. Kenanga Asia Pacific Total Return Fund (KAPTRF)

The valuation point of the Fund is at the close of business of the last relevant foreign market in which the Fund invests on that Business Day. As the Fund invests in foreign markets, the valuation of the Units in respect of a particular Business Day can only be carried out on the following Business Day at the close of business of the last relevant foreign market in which the Fund invests in.

http://www.kenangainvestors.com.my/


121

7. SHARIAH INVESTMENT GUIDELINES ADOPTED BY IBFIM, CLEANSING PROCESS AND ZAKAT (TITHE) FOR THE SHARIAH-COMPLIANT FUNDS (KIF, KSGF, KIBF, KIECF, KIMMF, KSGOF, KEIF, KSBF and KBIF)

1. Shariah Investment Guidelines

The following matters are adopted by IBFIM in determining the Shariah status of investments of the Funds. INVESTMENT IN MALAYSIA Equity:

Reference for investment in local securities is based on the list of Shariah-compliant securities issued by the SACSC twice yearly on the last Friday of May and November which is readily available at the Securities Commission’s website. However, for Initial Public Offering (“IPO”) companies that have yet to be determined the Shariah status by the SACSC, IBFIM adopts the following analysis as a temporary measure in determining its Shariah status until the SACSC releases the Shariah status of the respective companies.

Core Business Activities Analysis Companies whose activities are not contrary to the Shariah will be classified as Shariah-compliant securities. On the other hand, companies will be classified as Shariah non-compliant if they are involved in the following core business activities:

a) Conventional financial services;

b) Gambling and gaming;

c) Manufacture or sale of non-halal products or related products (e.g. pork and liquor);

d) Manufacture or sale of tobacco-based products or related products;

e) Pornography;

f) Weaponry;

g) Entertainment activities that are not permitted by the Shariah; and

h) Other activities considered non-permissible according to the Shariah.

Mixed Business Activities Analysis

For companies with activities comprising both permissible and non-permissible elements, IBFIM applies two analyses before they can be classified as Shariah-compliant. The analyses are as follows: i) Qualitative Analysis

In this analysis, IBFIM will look into aspects of general public perception of the companies’ images, core businesses which are considered important and maslahah (beneficial) to the Muslim ummah and the country, the non-permissible elements are very small and involve matters like umum balwa (common plight and difficult to avoid), ‘uruf (custom) and rights of the non-Muslim community which are accepted by the Shariah.

ii) Quantitative Analysis

Companies which passed the above qualitative analysis will be further subjected to quantitative analysis. IBFIM deduces the following to ensure that they are lower than the Shariah tolerable benchmarks:

a) Business Activity Benchmarks

The 5% benchmark would be applicable to the following business activities:

Conventional banking;

Conventional insurance;

Gambling;

Liquor and liquor-related activities;

Pork and pork-related activities;

Non-halal food and beverages;

Shariah non-compliant entertainment;

Interest income from conventional accounts and instruments;

Tobacco and tobacco-related activities; and


122

Other activities considered non-compliant according to Shariah. The 20% benchmark would be applicable to the following activities:

Hotel and resort operations;

Share trading;

Stockbroking business;

Rental received from Shariah non-compliant activities; and

Other activities considered non-compliant according to Shariah.

The contribution of Shariah non-compliant activities to the overall revenue/sales/turnover/income and profit before tax of the companies will be calculated and compared against the relevant business activity benchmarks.

b) Financial Ratio Benchmarks

The financial ratios applied are as follows:

Cash over Total Assets Cash will only include cash placed in conventional accounts and instruments, whereas cash

placed in Islamic accounts and instruments will be excluded from the calculation.

Debt over Total Assets Debt will only include interest-bearing debt whereas Islamic debt/financing or sukuk will be

excluded from the calculation. Both ratios, which are intended to measure riba and riba-based elements within a companies’ balance sheet, must be lower than 33%.

Should any of the above deductions fail to meet the benchmarks, IBFIM will not accord Shariah-compliant status for the companies.

Sukuk and Islamic Money Market Instruments:

IBFIM will review any sukuk and/or Islamic money market instruments based on the data available at Bond Info Hub (www.bondinfo.bnm.gov.my) and Fully Automated System For Issuing/Tendering (https://fast.bnm.gov.my). INVESTMENT IN FOREIGN MARKETS

Equity:

Core Business Activities Analysis

Companies whose activities are not contrary to the Shariah will be classified as Shariah-compliant securities. On the other hand, companies will be classified as Shariah non-compliant if they are involved in the following core business activities:

a) Conventional financial services; b) Gambling and gaming; c) Manufacture or sale of non-halal products or related products (e.g. pork and liquor); d) Manufacture or sale of tobacco-based products or related products; e) Pornography; f) Weaponry; g) Entertainment activities that are not permitted by the Shariah; and h) Other activities considered non-permissible according to the Shariah.

Mixed Business Activities Analysis

For companies with activities comprising both permissible and non-permissible elements, IBFIM applies two analyses before they can be classified as Shariah-compliant. The analyses are as follows:

http://www.bondinfo.bnm.gov.my/

https://fast.bnm.gov.my/


123

i) Qualitative Analysis

In this analysis, IBFIM will look into aspects of general public perception of the companies’ images, core businesses which are considered important and maslahah (beneficial) to the Muslim ummah and the country, the non-permissible elements are very small and involve matters like umum balwa (common plight and difficult to avoid), ‘uruf (custom) and rights of the non-Muslim community which are accepted by the Shariah.

ii) Quantitative Analysis

Companies which passed the above qualitative analysis will be further subjected to quantitative analysis. IBFIM deduces the following to ensure that they are lower than the Shariah tolerable benchmarks:

Contribution of interest income to the total income is lower than 5% of the total income;

Total debt of the companies (including all interest-bearing loans/debentures and their respective payables such as short term/long term debts, short term/long term debentures and all debentures payables) is lower than 30% of the total assets of the companies;

Total sum of companies’ cash and receivables is lower than 70% of its total assets; and

Income generated from other prohibited components from Shariah perspective is lower than 5% of the companies’ total income.

Should any of the above deductions fail to meet the benchmarks, IBFIM will not accord Shariah-compliant status for the companies.

Foreign Sukuk:

IBFIM will review the information memoranda or prospectuses of the sukuk, its structure, utilisation of proceeds, Shariah contracts, Shariah pronouncements, etc.

2. Cleansing Process for the Funds

a) Wrong Investment

This refers to Shariah non-compliant investment made by the fund manager. The said investment will be disposed of/withdrawn with immediate effect. In the event that the investment resulted in gain (through capital gain and/or dividend/profit), the gain is to be channelled to baitulmal or any other charitable bodies as advised by the Shariah adviser. If the disposal of the investment resulted in losses to the Fund, the losses are to be borne by the fund manager.

b) Reclassification of Shariah Status of the Funds’ Investment

Reclassification of Shariah status refers to equity which is reclassified as Shariah non-compliant by the SACSC, the Shariah adviser or the Shariah boards of the relevant Islamic indices. The said equity will be disposed soonest practical, once the total amount of dividends received and the market value held equals the original investment costs.

Any capital gains arising from the disposal of the Shariah non-compliant equity made at the time of the announcement can be kept by the Fund. However, any excess capital gains derived from the disposal after the announcement day at a market price that is higher than the closing price on the announcement day is to be channelled to baitulmal or any charitable bodies as advised by the Shariah adviser.

3. Zakat (tithe) for the Funds

The Funds do not pay zakat on behalf of Muslim individuals and Islamic legal entities who are investors of the Funds. Thus, investors are advised to pay zakat on their own.



124

8. DISTRIBUTION POLICY FOR THE FUNDS

Fund Name

Distribution Policy

KPF

The Fund intends to pay income by way of distributions or by the creation of additional Units after the end of each Accrual Period or any specified period, where possible.

KGF Income distribution is incidental, if any.

KIF

The Fund intends to pay income by way of distributions or by the creation of additional Units after the end of each Accrual Period or any specified period, where possible.

KSGF


KAPTRF As the objective of the Fund is to provide capital appreciation, distribution of income, if any, will be incidental.

KBF

The Fund aims to pay a regular distribution annually, where possible.

KIBF

Subject to the availability of income, the Fund will distribute income annually.

KBNF

The Fund aims to pay a regular distribution annually, where possible.

KMIF

The Fund intends to pay income by way of distribution or by the creation of additional Units after the end of each Accrual Period or any specified period, where applicable.

KCPF

The Fund seeks to distribute income on a monthly basis.

KIECF Income will be distributed on a best effort basis, if any.

KIMMF

Subject to the availability of income, the Fund will distribute income monthly.

KMMF

Subject to the availability of income, the Fund will distribute income monthly.

KBCF Income (if any) will be distributed annually on a best effort basis.

KGOF, KSGOF and KSBF

Income (if any) as secondary objective, is paid annually.

KEIF, KMGF and KDF

Income (if any) will be distributed annually on a best effort basis.

KIPF and KBIF

Income (if any) will be distributed twice a year on a best effort basis.

Distribution Reinvestment Option for KPF, KGF, KIF, KSGF, KAPTRF, KBF, KIBF, KBNF, KCPF, KIECF , KMIF, KIMMF, KMMF, KBCF, KGOF, KSGOF, KEIF, KMGF, KDF, KSBF, KIPF and KBIF

In the absence of instructions from a Unit Holder, distributions from the Fund are automatically reinvested into additional Units of that Fund based on the NAV per Unit with NO sales charge on the next Business Day after the distribution declaration date. If there is any change to the distribution instructions, Unit Holders need to notify the Manager within fourteen (14) days prior to the distribution payment date. For EPF investors, it is mandatory that all distribution of income shall be reinvested automatically.

For Unit Holders opt for distribution proceeds to be paid out to them, any distribution proceeds amounting to RM250 and below shall be automatically reinvested as additional Units of that Fund based on the NAV per Unit with NO sales

charge on the next Business Day after the distribution declaration date. In the event that cheques for distribution are not presented within six (6) months from the date of payment, the unclaimed distributions will be automatically reinvested into additional Units, based on the prevailing NAV per Unit fifteen (15) Business Days from the end of the said six (6) months period.


125

Illustration

Total returns comprise both the capital (reflected in the price) and income (reflected in the distributions) portions of

each Fund. Capital gains represent the appreciation in the Unit price as compared to the original purchase price per Unit for a particular period. Distributions represent income distributed by each Fund to Unit Holders for current and past profits made. When each Fund is making a distribution, the Unit price will automatically adjust itself on the ex-date, whereby the Unit price will be reduced by an equal ratio (assumption: no distribution related expenses involved) to that of the distribution ratio. This is due to outflow of money from each Fund back to the Unit Holders. Therefore, there is no point in buying unit trusts in anticipation of distributions. Distribution of income is usually expressed in sen per Unit and is approved by the Trustees of the Funds. Example: If a fund declares a distribution of 6 sen per Unit to all its Unit Holders as at 31 December 20XX, the Unit price before and after distribution will also be reduced by 6 sen per Unit as follows:

Price Before and After Income Distribution

Before Distribution

RM

After Distribution

RM

NAV/Unit 0.8300 0.7700

Repurchase Price/Unit 0.8300 0.7700

Selling Price/Unit 0.8300 0.7700

Distribution and Unit Split History

Fund Name Distribution and Unit Split History

KPF

Year Ended 28 Feb 2015 KPF declared a gross final distribution of 3.89 sen (3.89 sen net) per Unit on 26 February 2015.

Year Ended 28 Feb 2014 KPF declared a gross final distribution of 3.01 sen (3.00 sen net) per Unit on 27 February 2014.

Year Ended 31 Dec 2012 KPF declared a gross final distribution of 2.49 sen (2.44 sen net) per Unit on 31 December 2012.

KGF

Year Ended 31 May 2014 KGF declared a gross final distribution of 6.00 sen (6.00 sen net) per Unit on 28 May 2014.

Year Ended 31 Dec 2012 KGF declared a gross final distribution of 4.81 sen (4.73 sen net) per Unit on 31 December 2012.

31 May 2012

KGF declared unit split based on a 2:1 ratio.

Year Ended 31 Dec 2011

None


126

KIF Year Ended 31 Dec 2014

KIF declared a gross final distribution of 5.00 sen (5.00 sen net) per Unit on 30 December 2014.





KSGF

Year Ended 31 May 2014 KGF declared a gross final distribution of 7.50 sen (7.50 sen net) per Unit on 28 May 2014.


KSGF declared a gross final distribution of 6.39 sen (6.27 sen net) per Unit on 31 December 2012.

31 May 2012

KSGF declared a unit split based on a 2:1 ratio.


None

KBF Year Ended 28 Feb 2015

KBF declared a gross final distribution of 3.71 sen (3.71 sen net) per Unit on 26 February 2015.

Year Ended 28 Feb 2014



KBF declared a gross final distribution of 2.62 sen (2.61 sen net) per Unit on 31 December 2012.

KIBF Year Ended 28 Feb 2015



KIBF declared a gross final distribution of 3.00 sen (3.00 sen net) per Unit on 26 February 2014.


KIBF declared a gross final distribution of 2.80 sen (2.79 sen net) per Unit on 31 December 2012.

KBNF Year Ended 31 Dec 2014

KBNF declared a gross final distribution of 2.50 sen (2.50 sen net) per Unit on 30 December 2014.


127





KCPF Year Ended 31 Oct 2014

Date of Distribution Gross/Unit

(sen)

Net/Unit

(sen)

25/11/13 0.24 0.24

26/12/13 0.24 0.24

27/01/14 0.24 0.24

25/02/14 0.25 0.25

26/03/14 0.25 0.25

28/04/14 0.25 0.25

27/05/14 0.25 0.25

25/06/14 0.25 0.25

23/07/14 0.26 0.26

26/08/14 0.30 0.30

23/09/14 0.30 0.30

28/10/14 0.28 0.28

Year Ended 31 Oct 2013


(sen)

Net/Unit

(sen)

27/11/12 0.24 0.24

26/12/12 0.24 0.24

29/01/13 0.24 0.24

26/02/13 0.24 0.24

26/03/13 0.24 0.24

29/04/13 0.24 0.24

27/05/13 0.24 0.24

25/06/13 0.24 0.24

29/07/13 0.24 0.24

27/08/13 0.24 0.24

25/09/13 0.24 0.24

23/10/13 0.24 0.24



(sen)

Net/Unit

(sen)

23/11/11 0.24 0.24

27/12/11 0.24 0.24

30/01/12 0.24 0.24

27/02/12 0.24 0.24

26/03/12 0.24 0.24


128

25/04/12 0.24 0.24

28/05/12 0.24 0.24

27/06/12 0.24 0.24

26/07/12 0.24 0.24

28/08/12 0.24 0.24

26/09/12 0.24 0.24

29/10/12 0.24 0.24

KIECF Year Ended 31 Oct 2014


(sen)

Net/Unit

(sen)

27/05/14 0.12 0.12

25/06/14 0.28 0.28

23/07/14 0.18 0.18

26/08/14 0.28 0.28

23/09/14 0.21 0.21

28/10/14 0.27 0.27


None


None

KIMMF Year Ended 31 May 2014


(sen)

Net/Unit

(sen)

26/09/13 0.21 0.21

25/10/13 0.23 0.23

27/11/13 0.23 0.23

27/12/13 0.25 0.25

28/01/14 0.25 0.25

25/02/14 0.25 0.25

26/03/14 0.23 0.23

29/04/14 0.23 0.23

26/05/14 0.23 0.23


None


None


129

KMMF Year Ended 28 Feb 2015


(sen)

Net/Unit

(sen)

26/03/14 0.25 0.25

29/04/14 0.25 0.25

26/05/14 0.25 0.25

26/06/14 0.25 0.25

24/07/14 0.26 0.26

27/08/14 0.28 0.28

24/09/14 0.29 0.29

29/10/14 0.28 0.28

26/11/14 0.28 0.28

22/12/14 0.28 0.28

28/01/15 0.20 0.20

23/02/15 0.25 0.25



(sen)

Net/Unit

(sen)

27/09/13 0.25 0.25

28/10/13 0.25 0.25

27/11/13 0.25 0.25

27/12/13 0.30 0.30

28/01/14 0.30 0.30

25/02/14 0.30 0.30


None

KAPTRF, KBCF, KGOF, KSGOF, KEIF, KMGF, KDF, KSBF, KIPF and KBIF

The Funds have not declared any dividend for the financial year 2014, 2013 and 2012.

KMIF The Fund has not declared any dividend for the financial year 2015, 2014 and 2013.


130

9. PERFORMANCE AND HISTORICAL HIGHLIGHTS OF THE FUNDS Kenanga Premier Fund (KPF) Financial performance of the Fund

Average total returns of the Fund

1 year

28/02/14 - 28/02/15 3 years

28/02/12 - 28/02/15 5 years

28/02/10 – 28/02/15 10 years

28/02/05 – 28/02/15 (%) Return (%) Return (%) Return (%) Return

KPF (NAV) 1.95 8.12 9.95 10.98

Benchmark (%) -0.99 4.97 9.38 10.34

Performance Chart Since Inception KPF vs. FTSE-Bursa Malaysia 100 Index

Source : Lipper IM, dated 31 March 2015

YEAR 28/02/2015 28/02/2014 31/12/2012

RM RM RM

INCOME 4,860,212 20,474,843 8,026,770

EXPENDITURE 2,244,127 2,663,170 2,108,260

NET INCOME BEFORE TAX 2,616,085 17,811,673 5,918,510

NET INCOME AFTER TAX 2,616,085 17,732,313 5,803,710

TOTAL INVESTMENTS 93,371,423 102,285,821 103,028,592

TOTAL ASSETS 98,682,121 105,181,104 103,448,009

TOTAL LIABILITIES 3,554,702 2,205,605 6,840,797

NAV 95,312,022 103,695,005 97,173,851

UNITHOLDERS CONTRIBUTION 50,860,769 52,611,029 56,790,963


131

For the 12 months to 28 February 2015, the Fund appreciated by 1.95%, outperforming the negative 0.99% return in the FBM-100. The outperformance was mainly due to better stock selection.

The basis of calculating the average total returns is by calculating the growth of the NAV of the Fund at the start point against the NAV of the Fund at the end point of the calculation period of 1 year, 3 years, 5 years and 10 years. We take into account and factor in all the distributions and Unit splits into the NAV of the Fund for the purposes of the calculations. *Source: Lipper IM Distribution

Distributions were made in the form of cash for periods disclosed below.

Year Ended 28 Feb 2015 RM


Year Ended 31 Dec 2012 RM

The Manager, after consultation with the Trustee, declared its final distribution of 3.89 sen per Unit (Net) (Gross – 3.89 sen) on 26 February 2015.


The Manager, after consultation with the Trustee, declared its final distribution of 2.44 sen per Unit (Net) (Gross – 2.49 sen) on 31 December 2012.

PAST PERFORMANCE OF THE FUND IS NOT AN INDICATION OF ITS FUTURE PERFORMANCE.



132

Kenanga Growth Fund (KGF) Financial performance of the Fund


1 year

31/05/13 - 31/05/14 3 years

31/05/11 – 31/05/14 5 years

31/05/09 – 31/05/14 10 years

31/05/04 – 31/05/14 (%) Return (%) Return (%) Return

(%) Return

KGF (NAV) 19.30 22.85 37.4 31.70

Benchmark (%) 5.89 6.74 15.88 12.33

Performance Chart Since Inception KGF vs. FTSE-Bursa Malaysia Kuala Lumpur Composite Index


YEAR 31/05/2014 31/12/2012 31/12/2011

RM RM RM

INCOME 46,007,423 9,126,591 7,440,638

EXPENDITURE 3,872,190 1,236,542 758,154




TOTAL ASSETS 237,614,734 86,408,374 52,242,839

TOTAL LIABILITIES 4,506,494 5,900,253 332,526

NAV 234,289,159 80,998,550 51,910,313

UNITHOLDERS CONTRIBUTION 176,273,387 55,449,337

33,603,092


133

For the 12 months period to 31 May 2014, the Fund appreciated by 19.30%, outperforming the 5.89% increase in the FBM-KLCI Index. The outperformance was mainly due to stock selection.


Year Ended 31 May 2014 RM


RM Year Ended 31 Dec 2011

RM

The Manager, after consultation with the Trustee, declared its final distribution of 6.00 sen per Unit (Net) (Gross – 6.00 sen) on 28 May 2014.


Note: On 31 May 2012, KGF declared unit split based on a 2:1 ratio.

No distribution has been made during the period.




134

Kenanga Islamic Fund (KIF) Financial Performance of the Fund

YEAR 2014 2013 2012

RM RM RM

INCOME 140,506 8,124,003 4,023,364

EXPENDITURE 1,198,192 1,011,537 974,731

NET INCOME/(LOSS) BEFORE TAX (1,057,686) 7,112,466 3,048,633

NET INCOME/(LOSS) AFTER TAX (1,057,371) 7,108,736 3,034,633 TOTAL SHARIAH-COMPLIANT INVESTMENTS 46,904,023 41,512,378

42,128,936

TOTAL ASSETS 47,309,633 43,525,705 42,335,253

TOTAL LIABILITIES 2,052,784 638,243 2,970,480

NAV 45,376,977 43,041,617 39,527,550

UNITHOLDERS CONTRIBUTION 27,394,958

20,304,395

20,571,568 Average total returns of the Fund

1 year

31/12/13 - 31/12/14 3 years

31/12/11 – 31/12/14 5 years

31/12/09 – 31/12/14 10 years

31/12/04 – 31/12/14 (%) Return

(%) Return (%) Return

(%) Return

KIF (NAV) -1.84 9.27 14.23 17.84

Benchmark (%) -4.17 7.14 9.40 9.96

Performance Chart Since Inception KIF vs. FTSE-Bursa Malaysia Emas Shariah Index



135

For the period under review to 31 December 2013, the Fund was down 1.84% year-on-year but outperformed the benchmark by 2.33% due to Shariah-compliant stock selection.









Note: The Shariah adviser confirms that the investment portfolio of KIF comprises securities which have been classified as Shariah-compliant by the SACSC. As for the securities which are not certified by the SACSC, they have reviewed the said securities and opine that these securities are designated as Shariah-compliant.




136

Kenanga Syariah Growth Fund (KSGF) Financial Performance of the Fund

YEAR 31/05/2014 31/12/2012 31/12/2011

RM RM RM

INCOME 14,796,836 2,164,226 1,288,931

EXPENDITURE 1,621,083 402,219 175,239


NET INCOME AFTER TAX 13,168,839 1,724,807 1,097,196 TOTAL SHARIAH-COMPLIANT INVESTMENTS 98,567,858

31,567,252

11,687,351

TOTAL ASSETS 99,016,912 32,198,800 11,757,520

TOTAL LIABILITIES 8,392,460 1,925,016 906,873

NAV 91,183,393 30,435,835 10,850,647


24,850,204


1 year

31/05/13 - 31/05/14 3 years

31/05/11 – 31/05/14 5 years

31/05/09 – 31/05/14 10 years

31/05/04 – 31/05/14 (%) Return

(%) Return (%)Return

(%)Return

KSGF (NAV) 12.68 17.73 29.92 26.73

Benchmark (%) 5.90 8.77 15.79 12.03

Performance Chart Since Inception KSGF vs. FTSE-Bursa Malaysia Emas Shariah (FBMS) Index



137

For the 12 months period to 31 May 2014, the Fund appreciated by 12.68% and outperformed the FBMS benchmark Index return of 5.90%. The outperformance was mainly due to Shariah-compliant stock selection.


Year Ended 31 May 2014 RM



The Manager, after consultation with the Trustee, declared its final distribution of 7.50 sen per Unit (Net) (Gross – 7.50 sen) on 28 May 2014.


Note: On 31 May 2012, KSGF declared unit split based on a 2:1 ratio.


Note: The Shariah adviser confirms that the investment portfolio of KSGF comprises securities which have been classified as Shariah-compliant by the SACSC. As for the securities which are not certified by the SACSC, they have reviewed the said securities and opine that these securities are designated as Shariah-compliant.




138

Kenanga Asia Pacific Total Return Fund (KAPTRF) Financial performance of the Fund


Since Inception

11/07/13 - 30/06/14 (%) Return

KAPTRF (NAV) 17.60

Benchmark (%) 9.68

Performance Chart Since Inception KAPTRF vs. 10% growth in NAV per annum (compounded) over the long-term

Source : Lipper IM and Novagni Analytics and Advisory Sdn Bhd, dated 31 March 2015

YEAR 30/06/2014

RM

INCOME 12,697,980

EXPENDITURE 1,335,602

NET INCOME BEFORE TAX 11,362,378

NET INCOME AFTER TAX 11,362,378

TOTAL INVESTMENTS 93,157,486

TOTAL ASSETS 112,420,806

TOTAL LIABILITIES 707,458

NAV 111,900,695



139

For the period under review to 30 June 2014, the Fund appreciated by 17.60%, outperforming the 9.68% increase in the performance benchmark. The outperformance was mainly due to stock selection.

The basis of calculating the average total returns is by calculating the growth of the NAV of the Fund at the start point against the NAV of the Fund at the end point of the calculation since inception. We take into account and factor in all the distributions and Unit splits into the NAV of the Fund for the purposes of the calculations. *Source: Lipper IM and Novagni Analytics and Advisory Sdn Bhd Distribution

Year Ended 30 Jun 2014 RM





140

Kenanga Balanced Fund (KBF) Financial Performance of the Fund

YEAR 28/02/2015 28/02/2014 31/12/2012

RM RM RM

INCOME 1,497,460 2,725,354 2,044,762

EXPENDITURE 528,787 625,743 551,851

NET INCOME BEFORE TAX 968,673 2,099,611 1,492,911

NET INCOME AFTER TAX 972,596 2,107,715 1,485,311


TOTAL ASSETS 30,295,563 25,875,857 25,031,080

TOTAL LIABILITIES 2,892,471 1,322,451 1,596,970

NAV 27,448,152 24,624,809 23,434,110

UNITHOLDERS CONTRIBUTION

20,582,865

16,285,424

15,518,590


1 year

28/02/14 - 28/02/15 3 years

28/02/12 - 28/02/15 5 years

28/02/10 – 28/02/15 10 years

28/02/05 – 28/02/15 (%) Return (%) Return (%)Return (%)Return

KBF (NAV) 3.88 5.80 8.50 9.53

Benchmark (%)

-0.04 4.56 7.69 8.32

# The performance benchmark for Kenanga Balanced Fund has been changed to 60% FTSE-Bursa Malaysia 100 Index and 40% Maybank 12-month Fixed Deposit Rate on 29 October 2012. The previous benchmark was 60% FTSE-Bursa Malaysia 100 Index and 40% Benchmark 5-year MGS. Performance Chart Since Inception KBF vs. FTSE-Bursa Malaysia 100 Index/Maybank 12-month fixed deposit rate (60:40)



141

For the 12 months to 28 February 2015, the Fund has appreciated 3.88%, outperforming the slight drop of 0.04% in its benchmark (60% FBM100 Index + 40% Maybank 12-month Fixed Deposit rate). The out-performance was mainly due to stock selection.

The basis of calculating the average total returns is by calculating the growth of the NAV of the Fund at the start point against the NAV of the Fund at the end point of the calculation period of 1 year, 3 years, 5 years and 10 years. We take into account and factor in all the distributions and Unit splits into the NAV of the Fund for the purposes of the calculations.

*Source: Lipper IM Distribution











142

Kenanga Islamic Balanced Fund (KIBF) Financial Performance of the Fund

YEAR 28/02/2015 28/02/2014 31/12/2012

RM RM RM

INCOME 437,281 1,752,004 821,733

EXPENDITURE 192,445 304,115 264,208

NET INCOME BEFORE TAX 244,836 1,447,889 557,525

NET INCOME AFTER TAX 244,836 1,456,219 555,225

TOTAL SHARIAH-COMPLIANT INVESTMENTS

8,575,982

9,527,985

9,799,911

TOTAL ASSETS 8,628,277 9,854,353 9,835,362

TOTAL LIABILITIES 349,332 321,595 627,769

NAV 8,304,239 9,556,304 9,207,593


5,933,418

6,674,250

7,148,558


1 year 28/02/14 - 28/02/15

3 years 28/02/12 – 28/02/15

5 years 28/02/10 – 28/02/15

10 years 28/02/05 – 28/02/15

(%) Return

(%) Return (%) Return

(%) Return

KIBF (NAV) 2.51 5.85 8.60 10.92

Benchmark (%)# 2.20 5.86 7.78 8.21

# The performance benchmark for Kenanga Islamic Balanced Fund has been changed to 60% FTSE-Bursa Malaysia 100 Index and 40% Maybank 12-month GIA Rate on 29 October 2012. The previous benchmark was 60% FTSE-Bursa Malaysia 100 Index and 40% Benchmark 5-year Malaysian Government Investment Issues. Performance Chart Since Inception KIBF vs. FTSE Bursa Malaysia Emas Index/ Maybank 12-month GIA rate (60:40)



143

For the 12 months to 28 February 2015, the Fund has appreciated 2.51%, outperforming the 2.20% increase in its Benchmark (60% FBM Emas Shariah Index + 40% Maybank12-month GIA rate). The outperformance was mainly due to Shariah-compliant stock selection. The basis of calculating the average total returns is by calculating the growth of the NAV of the Fund at the start point against the NAV of the Fund at the end point of the calculation period of 1 year, 3 years, 5 years and 10 years. We take into account and factor in all the distributions and Unit splits into the NAV of the Fund for the purposes of the calculations. *Source: Lipper IM Distribution








Note: The Shariah adviser confirms that the investment portfolio of KIBF comprises securities which have been classified as Shariah-compliant by the SACSC. As for the securities which are not certified by the SACSC, they have reviewed the said securities and opine that these securities are designated as Shariah-compliant.




144

Kenanga Bond Fund (KBNF) Financial Performance of the Fund

YEAR 2014 2013 2012

RM RM RM

INCOME 288,869 216,571 332,732

EXPENDITURE 114,175 137,038 103,576

NET INCOME BEFORE TAX 174,694 79,533 229,156

NET INCOME AFTER TAX 174,694 79,824 229,156


TOTAL ASSETS 14,332,934 8,535,563 8,582,257


NAV 14,315,620 8,535,563 8,288,748


6,056,004


1 year 31/12/13 - 31/12/14

3 years 31/12/11 – 31/12/14

5 years 31/12/09 – 31/12/14

10 years 31/12/04 – 31/12/14

(%) Return

(%) Return (%)Return

(%)Return

KBNF (NAV) 2.58 2.30 3.82 5.21

Benchmark (%) 3.20 3.27 3.24 3.80

Performance Chart Since Inception KBNF vs. Maybank 12-month fixed deposit rates



145

For the 12-month period ended 31 December 2014, the Fund appreciated 2.58%, underperforming the 3.20% returns of the Maybank 12-month fixed deposit rate. This is due to the sell-off in bond markets ahead of Bank Negara Malaysia’s rate hike in July, and another bout of bond market weakness in December on concerns that the weaker ringgit and the falling global crude oil prices would impact Malaysia’s fiscal health in 2015. The basis of calculating the average total returns is by calculating the growth of the NAV of the Fund at the start point against the NAV of the Fund at the end point of the calculation period of 1 year, 3 years, 5 years and 10 years. We take into account and factor in all the distributions and Unit splits into the NAV of the Fund for the purposes of the calculations. *Source: Lipper IM Distribution










146

Kenanga Malaysian Inc Fund (KMIF) Financial Performance of the Fund

YEAR 31/01/2015 31/01/2014 31/12/2012

RM RM RM

INCOME 1,751,279 2,635,007 1,311,715

EXPENDITURE 472,634 532,496 634,373

NET INCOME BEFORE TAX 1,278,645 2,102,511 677,342

NET INCOME AFTER TAX 1,278,645 2,098,436 669,442


TOTAL ASSETS 13,692,889 14,924,911 17,017,052


NAV 13,388,872 14,857,601 16,959,191


23,346,386

26,067,053


1 year 31/01/14 - 31/01/15

3 years 31/01/12 - 31/01/15

5 years 31/01/10 - 31/01/15

Since Inception 9/11/07 - 31/01/15

(%) Return (%) Return (%)Return

(%) Return

KMIF (NAV) 8.26 8.99 9.07 2.39

Benchmark (%) -1.62 5.17 9.04 4.38

Performance Chart Since Inception KMIF vs. FTSE-Bursa Malaysia 100 Index



147

For the 12 months to 31 January 2015, the Fund appreciated by 8.26%, outperforming the decline of 1.62% in the FBM-100. The outperformance was mainly due to better stock selection.

The basis of calculating the average total returns is by calculating the growth of the NAV of the Fund at the start point against the NAV of the Fund at the end point of the calculation period of 1 year, 3 years, 5 years and since inception. We take into account and factor in all the distributions and Unit splits into the NAV of the Fund for the purposes of the calculations. *Source: Lipper IM Distribution

Year Ended 31 Jan 2015 RM

Year Ended 31 Jan 2014 RM








148

Kenanga Cash Plus Fund (KCPF) Financial Performance of the Fund

YEAR 2014 2013 2012

RM RM RM

INCOME 2,689,139 5,304,648 6,614,071

EXPENDITURE 509,623 961,673 1,151,460




TOTAL ASSETS 33,299,764 119,198,032 160,402,997


NAV 33,247,232 119,117,212 160,336,419


32,557,150

118,319,006

159,475,713


1 year 31/10/13 - 31/10/14

3 years 31/10/11 – 31/10/14

5 years 31/12/09 – 31/10/14

Since Inception 26/10/06 – 31/10/14


(%) Return

KCPF (NAV) 2.85 2.97 2.95 3.17

Benchmark (%) 3.06 3.14 3.05 3.16

Performance Chart Since Inception KCPF vs Maybank 1-Month Fixed Deposit Rate

Source : Lipper IM, dated 31 March 2015 The Fund underperformed its benchmark for the year under review mainly due to higher cash levels to accommodate higher volatility in fund size during the year. Investments in short-term corporate bonds as well as commercial papers continued to enhance the fund returns. The basis of calculating the average total returns is by calculating the growth of the NAV of the Fund at the start point against the NAV of the Fund at the end point of the calculation period of 1 year, 3 years, 5 years and since


149

inception. We take into account and factor in all the distributions and Unit splits into the NAV of the Fund for the purposes of the calculations. *Source: Lipper IM Distribution

Financial Year End Date of Distribution Gross/Unit

(sen)

Net/Unit

(sen)

2014 25/11/13 0.24 0.24

26/12/13 0.24 0.24

27/01/14 0.24 0.24

25/02/14 0.25 0.25

26/03/14 0.25 0.25

28/04/14 0.25 0.25

27/05/14 0.25 0.25

25/06/14 0.25 0.25

23/07/14 0.26 0.26

26/08/14 0.30 0.30

23/09/14 0.30 0.30

28/10/14 0.28 0.28

2013 27/11/12 0.24 0.24

26/12/12 0.24 0.24

29/01/13 0.24 0.24

26/02/13 0.24 0.24

26/03/13 0.24 0.24

29/04/13 0.24 0.24

27/05/13 0.24 0.24

25/06/13 0.24 0.24

29/07/13 0.24 0.24

27/08/13 0.24 0.24

25/09/13 0.24 0.24

23/10/13 0.24 0.24

2012 23/11/11 0.24 0.24

27/12/11 0.24 0.24

30/01/12 0.24 0.24

27/02/12 0.24 0.24

26/03/12 0.24 0.24

25/04/12 0.24 0.24

28/05/12 0.24 0.24

27/06/12 0.24 0.24

26/07/12 0.24 0.24

28/08/12 0.24 0.24

26/09/12 0.24 0.24

29/10/12 0.24 0.24



150

Kenanga i-Enhanced Cash Fund (KIECF) Financial Performance of the Fund

YEAR 2014 2013 2012

RM RM RM

INCOME 738,670 23,838 1,692

EXPENDITURE 134,943 5,194 545


NET INCOME AFTER TAX 603,727 18,644 1,147 TOTAL SHARIAH-COMPLIANT INVESTMENTS 61,934,890 - -

TOTAL ASSETS 61,944,083 253 48,563

TOTAL LIABILITIES 37,733 253 6,542

NAV 61,907,763 - 42,021 UNITHOLDERS CONTRIBUTION 61,824,370

-

40,874


1 year 31/10/13 - 31/10/14

3 years 31/10/11 – 31/10/14

5 years 31/12/09 – 31/10/14



(%) Return

KIECF (NAV) 1.34 0.64 2.14 2.33

Benchmark (%) 2.85 2.93 2.93 2.87

Performance Chart Since Inception KIECF vs Maybank 1-month GIA rate



151

The Fund underperformed the benchmark as the Units in circulation were zero during the first half of the year under review. The basis of calculating the average total returns is by calculating the growth of the NAV of the Fund at the start point against the NAV of the Fund at the end point of the calculation period of 1 year, 3 years, 5 years and since inception. We take into account and factor in all the distributions and Unit splits into the NAV of the Fund for the purposes of the calculations. *Source: Lipper IM Distribution


(sen)

Net/Unit

(sen)

2014 27/05/14 0.12 0.12

25/06/14 0.28 0.28

23/07/14 0.18 0.18

26/08/14 0.28 0.28

23/09/14 0.21 0.21

28/10/14 0.27 0.27

2013 - - -

2012 - - -

Note: The Shariah adviser confirms that the investment portfolio of KIECF comprises securities which have been classified as Shariah-compliant by the SACSC. As for the securities which are not certified by the SACSC, they have reviewed the said securities and opine that these securities are designated as Shariah-compliant.




152

Kenanga Islamic Money Market Fund (KIMMF) Financial Performance of the Fund

YEAR 31/05/2014 31/12/2012 31/12/2011

RM RM RM

INCOME 993,382 275,416 102,265

EXPENDITURE 204,245 83,358 52,352




21,460,658

24,200,282

3,487,000

TOTAL ASSETS 21,533,893 24,242,538 3,518,173


NAV 21,504,976 24,212,099 3,491,375


21,167,972

23,860,640

3,331,919


1 year 31/05/13 - 31/05/14

3 years 31/05/11 – 31/05/14

5 years 31/05/09 – 31/05/14



(%) Return

KIMMF (NAV) 2.36 2.08 1.58 1.61

Benchmark (%)# 1.82 1.82 1.62 1.78

# The performance benchmark for Kenanga Islamic Money Market Fund has been changed to Maybank Overnight Repo Rate on 29 October 2012. The previous benchmark was Maybank 1-month GIA rate. Performance Chart Since Inception KIMMF vs. Maybank Overnight Repo Rate



153

For the financial period under review the Fund registered a return of 2.36% compared to the benchmark (Maybank’s Overnight rate) of 1.82% for the same period. The Fund outperformed its benchmark mainly due to the active management of asset allocation and maturity structure, which enabled the Fund to enhance returns while maintaining capital stability.

The basis of calculating the average total returns is by calculating the growth of the NAV of the Fund at the start point against the NAV of the Fund at the end point of the calculation period of 1 year, 3 years, 5 years and since inception. We take into account and factor in all the distributions and Unit splits into the NAV of the Fund for the purposes of the calculations. *Source: Lipper IM Distribution


(sen)

Net/Unit

(sen)

31 May 2014 26/09/13 0.21 0.21

25/10/13 0.23 0.23

27/11/13 0.23 0.23

27/12/13 0.25 0.25

28/01/14 0.25 0.25

25/02/14 0.25 0.25

26/03/14 0.23 0.23

29/04/14 0.23 0.23

26/05/14 0.23 0.23

31 Dec 2012 No distribution has been made during the period.


Note: The Shariah adviser confirms that the investment portfolio of KIMMF comprises securities which have been classified as Shariah-compliant by the SACSC. As for the securities which are not certified by the SACSC, they have reviewed the said securities and opine that these securities are designated as Shariah-compliant.




154

Kenanga Money Market Fund (KMMF) Financial Performance of the Fund

YEAR 28/02/2015 28/02/2014 31/12/2012

RM RM RM

INCOME 1,885,792 1,890,149 1,444,026

EXPENDITURE 293,125 327,947 338,834




TOTAL ASSETS 44,810,925 44,301,675 39,357,411


NAV 44,765,625 44,246,432 39,316,698


40,785,301

39,068,125

34,718,378


1 year 28/02/14 - 28/02/15

3 years 28/02/12 - 28/02/15

5 years 28/02/10 - 28/02/15



(%) Return

KMMF (NAV) 3.15 3.11 3.14 3.12

Benchmark (%) 1.93 1.89 1.77 1.80

# The performance benchmark for Kenanga Money Market Fund has been changed to Maybank Overnight Repo Rate on 29 October 2012. The previous benchmark was Maybank Overnight Rate. Performance Chart Since Inception KMMF vs. Maybank Overnight Repo Rate



155

For the financial period under review, the Fund outperformed it benchmark mainly due to the active management of asset allocation and maturity structure, which enabled the Fund to enhance returns while maintaining capital stability. The basis of calculating the average total returns is by calculating the growth of the NAV of the Fund at the start point against the NAV of the Fund at the end point of the calculation period of 1 year, 3 years, 5 years and since inception. We take into account and factor in all the distributions and Unit splits into the NAV of the Fund for the purposes of the calculations. *Source: Lipper IM Distribution


(sen)

Net/Unit

(sen)

28 Feb 2015 26/03/14 0.25 0.25

29/04/14 0.25 0.25

26/05/14 0.25 0.25

26/06/14 0.25 0.25

24/07/14 0.26 0.26

27/08/14 0.28 0.28

24/09/14 0.29 0.29

29/10/14 0.28 0.28

26/11/14 0.28 0.28

22/12/14 0.28 0.28

28/01/15 0.20 0.20

23/02/15 0.25 0.25

28 Feb 2014 27/09/13 0.25 0.25

28/10/13 0.25 0.25

27/11/13 0.25 0.25

27/12/13 0.30 0.30

28/01/14 0.30 0.30

25/02/14 0.30 0.30





156

Kenanga Blue Chip Fund (KBCF) Financial Performance of the Fund

YEAR 2014 2013 2012

RM RM RM

INCOME 1,916,783 3,596,245 13,791,348

EXPENDITURE 398,262 574,406 1,415,605




TOTAL ASSETS 21,199,196 23,099,569 66,434,387

TOTAL LIABILITIES 91,511 76,444 10,363,285

NAV 21,160,368 23,069,818 56,247,508 UNITHOLDERS CONTRIBUTION 13,477,620

16,915,483

32,239,691


1 year 30/09/13 - 30/09/14

3 years 30/09/11 – 30/09/14

5 years 30/09/09 – 30/09/14

10 years 30/09/04 – 30/09/14


(%) Return

KBCF (NAV) 7.05 12.26 11.83 15.13

Benchmark (%) 3.98 11.71 11.70 12.21

Performance Chart Since Inception KBCF vs. FTSE Bursa Malaysia 100 Index



157

The Fund recorded a return of 7.05%, outperforming the benchmark FTSE Bursa Malaysia 100 Index return of 3.98%. The Fund’s outperformance compared to the benchmark was attributed to its stock selection. The basis of calculating the average total returns is by calculating the growth of the NAV of the Fund at the start point against the NAV of the Fund at the end point of the calculation period of 1 year, 3 years, 5 years and 10 years. We take into account and factor in all the distributions and Unit splits into the NAV of the Fund for the purposes of the calculations. *Source: Lipper IM Distribution

Year Ended 30 Sep 2014 RM









158

Kenanga Growth Opportunities Fund (KGOF) Financial Performance of the Fund

YEAR 2014 2013 2012

RM RM RM

INCOME 1,456,241 575,537 290,053

EXPENDITURE 185,736 102,189 77,824

NET INCOME BEFORE TAX 1,270,505 473,348 212,229

NET INCOME AFTER TAX 1,271,617 468,948 209,029


TOTAL ASSETS 11,062,465 4,059,350 4,765,220


NAV 11,069,286 4,052,018 4,618,351


9,169,872

3,460,893

4,505,334


1 year 31/08/13 - 31/08/14

3 years 31/08/11 – 31/08/14

5 years 31/08/09 – 31/08/14

10 years 31/08/04 – 31/08/14


(%) Return

KGOF (NAV) 22.97 19.46 22.36 11.41

Benchmark (%) 8.58 10.38 12.80 13.16

Performance Chart Since Inception KGOF vs. FTSE Bursa Malaysia Emas Index



159

During the period under review, the Fund registered a positive return of 22.97%, outperforming the benchmark return of 8.58%. The outperformance was attributable to better stock selection. The basis of calculating the average total returns is by calculating the growth of the NAV of the Fund at the start point against the NAV of the Fund at the end point of the calculation period of 1 year, 3 years, 5 years and 10 years. We take into account and factor in all the distributions and Unit splits into the NAV of the Fund for the purposes of the calculations. *Source: Lipper IM Distribution

Year Ended 31 Aug 2014 RM









160

Kenanga Shariah Growth Opportunities Fund (KSGOF) Financial Performance of the Fund

YEAR 2014 2013 2012

RM RM RM

INCOME 499,534 807,554 410,245

EXPENDITURE 186,585 101,282 103,592




9,630,945

5,477,147

4,011,709

TOTAL ASSETS 9,805,759 5,493,491 4,145,110


NAV 9,681,290 5,488,966 3,868,080


8,254,410

4,419,877

3,512,875


1 year 30/11/13 - 30/11/14

3 years 30/11/11 – 30/11/14

5 years 30/11/09 – 30/11/14

10 years 30/11/04 – 30/11/14


(%) Return

KSGOF (NAV) 7.40 12.81 14.83 7.48

Benchmark (%)# 2.37 10.79 10.96 10.63

# The performance benchmark for Kenanga Shariah Growth Opportunities Fund has been changed to FTSE Bursa Malaysia Emas Shariah Index due to its conversion into a Shariah-compliant fund on 7 September 2010. The previous benchmark was FTSE Bursa Malaysia 100 Index. Performance Chart Since Inception KSGOF vs FTSE Bursa Malaysia Emas Shariah Index



161

The Fund outperformed the benchmark by 5.03% with a return of 7.40% for the period under review. The outperformance was mainly due to Shariah-compliant stock selection. The basis of calculating the average total returns is by calculating the growth of the NAV of the Fund at the start point against the NAV of the Fund at the end point of the calculation period of 1 year, 3 years, 5 years and 10 years. We take into account and factor in all the distributions and Unit splits into the NAV of the Fund for the purposes of the calculations. *Source: Lipper IM Distribution

Year Ended 30 Nov 2014 RM






Note: The Shariah adviser confirms that the investment portfolio of KSGOF comprises securities which have been classified as Shariah-compliant by the SACSC. As for the securities which are not certified by the SACSC, they have reviewed the said securities and opine that these securities are designated as Shariah-compliant.




162

Kenanga Ekuiti Islam Fund (KEIF) Financial Performance of the Fund

YEAR 2014 2013 2012

RM RM RM

INCOME 1,506,843 1,687,117 852,055

EXPENDITURE 210,677 314,706 455,187

NET INCOME BEFORE TAX 1,296,166 1,372,411 396,868

NET INCOME AFTER TAX 1,299,188 1,372,411 402,916


10,127,828

11,270,770

24,244,917

TOTAL ASSETS 10,145,795 11,392,557 25,960,562


NAV 10,140,177 11,356,364 23,959,017


62,084

2,566,715

16,526,553


1 year 30/06/13 - 30/06/14

3 years 30/06/11 – 30/06/14

5 years 30/06/09 – 30/06/14

10 years 30/06/04 – 30/06/14


(%) Return

KEIF (NAV) 12.79 9.69 15.11 16.09

Benchmark (%) 8.89 9.10 15.96 12.93

Performance Chart Since Inception KEIF vs. FTSE Bursa Malaysia Emas Shariah Index



163

For the period under review, the Fund appreciated by 12.8%, outperform the benchmark return by 3.9%. The outperformance was due to the Shariah-compliant stock selection. The basis of calculating the average total returns is by calculating the growth of the NAV of the Fund at the start point against the NAV of the Fund at the end point of the calculation period of 1 year, 3 years, 5 years and 10 years. We take into account and factor in all the distributions and Unit splits into the NAV of the Fund for the purposes of the calculations. *Source: Lipper IM Distribution







Note: The Shariah adviser confirms that the investment portfolio of KEIF comprises securities which have been classified as Shariah-compliant by the SACSC. As for the securities which are not certified by the SACSC, they have reviewed the said securities and opine that these securities are designated as Shariah-compliant.




164

Kenanga Managed Growth Fund (KMGF) Financial Performance of the Fund

YEAR 2014 2013 2012

RM RM RM

INCOME 1,821,717 2,367,431 2,902,249

EXPENDITURE 267,338 1,002,107 1,361,835




TOTAL ASSETS 11,422,549 33,023,552 83,078,604

TOTAL LIABILITIES 41,725 1,089,615 5,709,151

NAV 11,412,675 31,967,265 77,482,151


3,772,560

11,156,566

57,901,875


1 year 31/03/13 - 31/03/14

3 years 31/03/11 – 31/03/14

5 years 31/03/09 – 31/03/14



(%) Return

KMGF (NAV) 11.96 6.38 12.52 10.40

Benchmark (%) 5.74 5.36 12.78 8.61

Performance Chart Since Inception KMGF vs.a composite of FTSE Bursa Malaysia Top 100 Index (50%) and All Malaysian Government Securities (MGS) Index (50%)



165

The Fund recorded a return of 11.96%, outperforming the benchmark return of 5.74%. The Fund’s outperformance as compared to the benchmark was attributed to sector allocation and stock selection. For the fixed income portion, the performance of government bonds underperformed the corporate bonds during the period under review. The portfolio only consists of corporate bonds as against the benchmark of All Malaysian Government Securities Index. The basis of calculating the average total returns is by calculating the growth of the NAV of the Fund at the start point against the NAV of the Fund at the end point of the calculation period of 1 year, 3 years, 5 years and 10 years. We take into account and factor in all the distributions and Unit splits into the NAV of the Fund for the purposes of the calculations. *Source: Lipper IM and Novagni Analytics and Advisory Sdn Bhd Distribution

Year Ended 31 Mar 2014 RM









166

Kenanga Diversified Fund (KDF) Financial Performance of the Fund

YEAR 2014 2013 2012

RM RM RM

INCOME 1,730,243 5,178,690 1,282,767

EXPENDITURE 294,487 627,730 208,481




TOTAL ASSETS 5,147,828 39,754,707 13,983,519


NAV 5,107,346 39,710,590 13,785,957


802,361

32,293,197

10,960,201


1 year 30/11/13 - 30/11/14

3 years 30/11/11 – 30/11/14

5 years 30/11/09 – 30/11/14

10 years 30/11/04 – 30/11/14


(%) Return

KDF (NAV) 0.71 11.49 11.48 7.57

Benchmark (%)# 1.46 5.95 6.88 7.48

# The performance benchmark for Kenanga Diversified Fund has been changed to a composite of 60% FTSE Bursa Malaysia 100 Index and 40% RAM Quantshop MGS All Index on 15 August 2012. The previous benchmark was a 55% FTSE Bursa Malaysia 100 Index and 45% RAM Quantshop MGS All Index. Performance Chart Since Inception KDF vs. a composite of FTSE Bursa Malaysia Top 100 Index (60%) & All Malaysian Government Securities (MGS) Index (40%)



167

The Fund underperformed the benchmark by 0.75%. The underperformance was mainly due to stock selection and its overweight in oil and gas sector. The basis of calculating the average total returns is by calculating the growth of the NAV of the Fund at the start point against the NAV of the Fund at the end point of the calculation period of 1 year, 3 years, 5 years and 10 years. We take into account and factor in all the distributions and Unit splits into the NAV of the Fund for the purposes of the calculations. *Source: Lipper IM and Novagni Analytics and Advisory Sdn Bhd Distribution










168

Kenanga Shariah Balanced Fund (KSBF) Financial Performance of the Fund

YEAR 2014 2013 2012

RM RM RM

INCOME 107,230 776,719 2,516,576

EXPENDITURE 52,659 171,337 370,410

NET INCOME BEFORE TAX 54,571 605,382 2,146,166

NET INCOME AFTER TAX 58,433 602,657 2,146,166 TOTAL SHARIAH-COMPLIANT INVESTMENTS 341,236 4,410,275 17,684,137

TOTAL ASSETS 376,971 4,447,567 17,732,563


NAV 355,573 4,420,149 16,489,447 UNITHOLDERS CONTRIBUTION 127,503

724,703

13,369,363


1 year 30/09/13 - 30/09/14

3 years 30/09/11 – 30/09/14

5 years 30/09/09 – 30/09/14

10 years 30/09/04 – 30/09/14


(%) Return

KSBF (NAV) -0.86 6.10 5.81 5.80

Benchmark (%)# 5.07 8.97 7.94 7.94

# The performance benchmark for Kenanga Shariah Balanced Fund has been changed to a composite of 50% FTSE Bursa Malaysia Emas Shariah Index and 50% RAM Quantshop Malaysian Government Investment Issue due to its conversion into a Shariah-compliant fund on 16 October 2009. The previous benchmark was a composite of 50% KLSE Composite Index and 50% MGS Index. Performance Chart Since Inception KSBF vs. a composite of FTSE Bursa Malaysia Emas Shariah Index (FBMS) (50%) and the All Malaysian Government Investment Issue (50%)



169

For the year under review, the Fund has depreciated by 0.86% and underperformed the 5.07% increase in its benchmark. The underperformance was mainly due to high expense ratio and limited trading strategy on the sukuk. The basis of calculating the average total returns is by calculating the growth of the NAV of the Fund at the start point against the NAV of the Fund at the end point of the calculation period of 1 year, 3 years, 5 years and 10 years. We take into account and factor in all the distributions and Unit splits into the NAV of the Fund for the purposes of the calculations. *Source: Lipper IM and Novagni Analytics and Advisory Sdn Bhd Distribution







Note: The Shariah adviser confirms that the investment portfolio of KSBF comprises securities which have been classified as Shariah-compliant by the SACSC. As for the securities which are not certified by the SACSC, they have reviewed the said securities and opine that these securities are designated as Shariah-compliant.




170

Kenanga Income Plus Fund (KIPF) Financial Performance of the Fund

YEAR 2014 2013 2012

RM RM RM

INCOME 1,219,845 3,596,091 3,520,110

EXPENDITURE 605,851 843,087 668,074

NET INCOME BEFORE TAX 613,994 2,753,004 2,852,036

NET INCOME AFTER TAX 613,994 2,753,004 2,852,036


TOTAL ASSETS 31,608,508 77,065,135 67,898,816


NAV 30,663,379 77,004,211 67,873,869


17,257,103

64,213,435

57,806,515


1 year 31/03/13 - 31/03/14

3 years 31/03/11 – 31/03/14

5 years 31/03/09 – 31/03/14



(%) Return

KIPF (NAV) 0.70 3.29 4.15 4.86

Benchmark (%) 0.87 3.67 3.73 5.38

Performance Chart Since Inception KIPF vs. All Malaysian Government Securities (MGS) Index



171

The Fund underperformed the official benchmark All MGS Index. This was mainly due to underweight position in government bonds, which were steadier than corporate bond yields during the period under review. The basis of calculating the average total returns is by calculating the growth of the NAV of the Fund at the start point against the NAV of the Fund at the end point of the calculation period of 1 year, 3 years, 5 years and since inception. We take into account and factor in all the distributions and Unit splits into the NAV of the Fund for the purposes of the calculations. *Source: Lipper IM and Novagni Analytics and Advisory Sdn Bhd Distribution










172

Kenanga Bon Islam Fund (KBIF) Financial Performance of the Fund

YEAR 2014 2013 2012

RM RM RM

INCOME 48,030 296,941 366,340

EXPENDITURE 71,085 119,165 125,085 NET INCOME/ (LOSS) BEFORE TAX (23,055) 177,776 241,255

NET INCOME/ (LOSS) AFTER TAX (23,055) 177,776 241,255 TOTAL SHARIAH-COMPLIANT INVESTMENTS 1,541,587 3,621,503 9,866,996

TOTAL ASSETS 1,551,103 3,940,451 9,871,809


NAV 1,509,642 3,907,282 9,845,811 UNITHOLDERS CONTRIBUTION 362,924

2,745,799

8,843,331


1 year 30/06/13 - 30/06/14

3 years 30/06/11 – 30/06/14

5 years 30/06/09 – 30/06/14

10 years 30/06/04 – 30/06/14


(%) Return

KBIF (NAV) -0.29 1.66 2.28 3.95

Benchmark (%) 2.52 3.55 4.19 4.31

Performance Chart Since Inception KBIF vs. All Malaysian Government Investment Issue



173

During the period under review, the Fund depreciated 0.29%, underperforming 2.81% returns of the All Malaysian Government Investment Issue Index. The underperformance was mainly due to its small fund size which incurred a higher management expense ratio and a challenge to implement an effective strategy to improve the performance of the Fund. The local sukuk market was also weak in the first half of 2014, which made it difficult to generate higher returns for the portfolio. The basis of calculating the average total returns is by calculating the growth of the NAV of the Fund at the start point against the NAV of the Fund at the end point of the calculation period of 1 year, 3 years, 5 years and 10 years. We take into account and factor in all the distributions and Unit splits into the NAV of the Fund for the purposes of the calculations. *Source: Lipper IM and Novagni Analytics and Advisory Sdn Bhd Distribution







Note: The Shariah adviser confirms that the investment portfolio of KBIF comprises securities which have been classified as Shariah-compliant by the SACSC. As for the securities which are not certified by the SACSC, they have reviewed the said securities and opine that these securities are designated as Shariah-compliant.




174

Annual Total Return of the Fund for the last 10 financial years (or since establishment)

1 year 28/02/14

- 28/02/15

(%)

Period 31/12/12

- 28/02/14

(%)

1 year 31/12/11

- 31/12/12

(%)

1 year 31/12/10

- 31/12/11

(%)

1 year 31/12/09

- 31/12/10

(%)

1 year 31/12/08

- 31/12/09

(%)

1 year 31/12/07

- 31/12/08

(%)

1 year 31/12/06

- 31/12/07

(%)

1 year 31/12/05

- 31/12/06

(%)

1 year 31/12/04

- 31/12/05

(%)

KPF 1.95 19.01 5.91 3.19 14.83 33.56 -49.67 48.53 49.67 -8.70

FTSE-Bursa Malaysia 100 Index

-0.99 9.32 9.60 1.94 21.76 48.00 -40.92 33.41 23.04 -3.16

Period 31/12/12

- 31/05/14

(%)

1 year 31/12/11

- 31/12/12

(%)

1 year 31/12/10

- 31/12/11

(%)

1 year 31/12/09

- 31/12/10

(%)

1 year 31/12/08

- 31/12/09

(%)

1 year 31/12/07

- 31/12/08

(%)

1 year 31/12/06

- 31/12/07

(%)

1 year 31/12/05

- 31/12/06

(%)

1 year 31/12/04

- 31/12/05

(%)

1 year 31/12/03

- 31/12/04

(%)

KGF 38.23 14.06 19.07 32.71 33.31 -24.73 38.09 22.04 0.91 3.58

FTSE-Bursa Malaysia Kuala Lumpur Composite Index

10.92 10.34 0.78 19.34 45.17 -39.33 31.82 21.83 -0.84 14.29

1 year 31/12/13

- 31/12/14

(%)

1 year 31/12/12

- 31/12/13

(%)

1 year 31/12/11

- 31/12/12

(%)

1 year 31/12/10

- 31/12/11

(%)

1 year 31/12/09

- 31/12/10

(%)

1 year 31/12/08

- 31/12/09

(%)

1 year 31/12/07

- 31/12/08

(%)

1 year 31/12/06

- 31/12/07

(%)

1 year 31/12/05

- 31/12/06

(%)

1 year 31/12/04

- 31/12/05

(%)

KIF -1.84 19.80 8.69 13.01 18.50 33.59 -45.86 78.99 53.75 -18.74


-4.17 13.29 11.85 2.41 18.20 43.03 -43.52 45.57 26.52 -8.73

Period 31/12/12

- 31/05/14

(%)

1 year 31/12/11

- 31/12/12

(%)

1 year 31/12/10

- 31/12/11

(%)

1 year 31/12/09

- 31/12/10

(%)

1 year 31/12/08

- 31/12/09

(%)

1 year 31/12/07

- 31/12/08

(%)

1 year 31/12/06

- 31/12/07

(%)

1 year 31/12/05

- 31/12/06

(%)

1 year 31/12/04

- 31/12/05

(%)

1 year 31/12/03

- 31/12/04

(%)

KSGF 28.72 12.14 16.93 29.70 30.42 -26.02 40.83 22.14 1.91 2.57


14.02 11.85 2.41 18.20 43.03 -43.52 45.57 26.52 -8.73 9.18


(%)

KAPTRF 17.60

10% growth in NAV per annum (compounded) over the long-term

9.68

1 year 28/02/14

– 28/02/15

(%)

Period 31/12/12

- 28/02/14

(%)

1 year 31/12/11

- 31/12/12

(%)

1 year 31/12/10

- 31/12/11

(%)

1 year 31/12/09

- 31/12/10

(%)

1 year 31/12/08

- 31/12/09

(%)

1 year 31/12/07

- 31/12/08

(%)

1 year 31/12/06

- 31/12/07

(%)

1 year 31/12/05

- 31/12/06

(%)

1 year 31/12/04

- 31/12/05

(%)

KBF 3.88 9.26 6.20 4.60 13.84 29.28 -32.84 28.62 25.38 -3.69

FTSE-Bursa Malaysia 100 Index/Maybank 12-month fixed deposit rate (60:40)

-0.04 7.99 8.01 2.20 16.48 31.84 -30.23 24.84 16.79 -1.03


175

1 year 28/02/14

– 28/02/15

(%)

Period 31/12/12

- 28/02/14

(%)

1 year 31/12/11

- 31/12/12

(%)

1 year 31/12/10

- 31/12/11

(%)

1 year 31/12/09

- 31/12/10

(%)

1 year 31/12/08

- 31/12/09

(%)

1 year 31/12/07

- 31/12/08

(%)

1 year 31/12/06

- 31/12/07

(%)

1 year 31/12/05

- 31/12/06

(%)


(%)

KIBF 2.51 11.64 5.52 7.74 11.00 23.87 -24.40 33.78 20.88 -3.10

FTSE Bursa Malaysia Emas Index/ Maybank 12-month GIA rate (60:40)

2.20 9.29 8.91 2.62 12.49 24.88 -29.11 29.44 16.63 -4.27

1 year 31/12/13

- 31/12/14

(%)

1 year 31/12/12

- 31/12/13

(%)

1 year 31/12/11

- 31/12/12

(%)

1 year 31/12/10

- 31/12/11

(%)

1 year 31/12/09

- 31/12/10

(%)

1 year 31/12/08

- 31/12/09

(%)

1 year 31/12/07

- 31/12/08

(%)

1 year 31/12/06

- 31/12/07

(%)

1 year 31/12/05

- 31/12/06

(%)

1 year 31/12/04

- 31/12/05

(%)

KBNF 2.58 0.46 3.73 4.86 6.24 6.32 3.58 4.46 4.99 5.75

Maybank 12-months fixed deposit rates

3.20 3.15 3.15 3.03 2.74 2.62 3.68 3.70 3.80 3.70

1 year 31/01/14 -31/01/15

(%)

Period 31/12/12 -31/01/14

(%)

1 year 31/12/11

- 31/12/12

(%)

1 year 31/12/10

- 31/12/11

(%)

1 year 31/12/09

- 31/12/10

(%)

1 year 31/12/08

- 31/12/09

(%)


(%)

KMIF 8.26 14.13 3.60 3.71 10.66 26.25 -36.68

FTSE-Bursa Malaysia 100 Index

-1.62 8.11 9.60 1.94 21.76 48.00 -38.43

Period 31/12/12

- 31/05/14

(%)

1 year 31/12/11

- 31/12/12

(%)

1 year 31/12/10

- 31/12/11

(%)

1 year 31/12/09

- 31/12/10

(%)

1 year 31/12/08

- 31/12/09

(%)

1 year 31/12/07

- 31/12/08

(%)


(%)

KIMMF 3.40 1.79 1.47 0.82 0.53 1.92 2.08


2.58 1.80 2.95 2.50 2.18 2.31 2.65

1 year 28/02/14

- 28/02/15

(%)

Period 31/12/12

- 28/02/14

(%)

1 year 31/12/11

- 31/12/12

(%)

1 year 31/12/10

- 31/12/11

(%)

1 year 31/12/09

- 31/12/10

(%)

1 year 31/12/08

- 31/12/09

(%)


(%)

KMMF 3.15 3.40 3.04 2.98 2.63 2.36 3.36


1.93 2.11 1.80 1.65 1.24 1.13 2.65

1 year 31/10/13

- 31/10/14

(%)

1 year 31/10/12

- 31/10/13

(%)

1 year 31/10/11

- 31/10/12

(%)

1 year 31/10/10

- 31/10/11

(%)

1 year 31/10/09

- 31/10/10

(%)

1 year 31/10/08

- 31/10/09

(%)

1 year 31/10/07

- 31/10/08

(%)


(%)

KCPF 2.85 2.83 2.99 2.96 2.31 2.94 3.02 3.06

Maybank 1-month fixed deposit rate

3.06 3.04 3.05 2.89 2.35 2.31 3.05 3.12


176

1 year 31/10/13

- 31/10/14

(%)

1 year 31/10/12

- 31/10/13

(%)

1 year 31/10/11

- 31/10/12

(%)

1 year 31/10/10 -31/10/11

(%)

1 year 31/10/09 -31/10/10

(%)

1 year 31/10/08 -31/10/09

(%)


(%)

KiECF 1.34 -0.58 1.15 6.64 1.84 2.12 3.28

Maybank 1-month GIA rate

2.85 2.78 2.92 2.91 2.39 2.21 2.88

1 year 30/09/13

- 30/09/14

(%)

1 year 30/09/12

- 30/09/13

(%)

1 year 30/09/11

- 30/09/12

(%)

1 year 30/09/10

- 30/09/11

(%)

1 year 30/09/09 -30/09/10

(%)

1 year 30/09/08

- 30/09/09

(%)

1 year 30/09/07

- 30/09/08

(%)

1 year 30/09/06

- 30/09/07

(%)

1 year 30/09/05

- 30/09/06

(%)

Since Inception 23/04/04

- 30/09/05

(%)

KBCF 7.05 12.67 13.40 -2.56 19.40 10.50 -23.02 57.53 6.26 13.98

FTSE Bursa Malaysia 100 Index

3.98 9.86 18.31 -3.57 21.61 19.86 -24.31 39.07 48.59 2.39

1 year 31/08/13

- 31/08/14

(%)

1 year 31/08/12

- 31/08/13

(%)

1 year 31/08/11

- 31/08/12

(%)

1 year 31/08/10

- 31/08/11

(%)

1 year 31/08/09 -31/08/10

(%)

1 year 31/08/08

- 31/08/09

(%)

1 year 31/08/07

- 31/08/08

(%)

1 year 31/08/06

- 31/08/07

(%)

1 year 31/08/05

- 31/08/06

(%)


- 31/08/05

(%)

KGOF 22.97 14.50 12.47 14.20 17.10 -7.67 -25.86 38.37 3.57 0.92

FTSE Bursa Malaysia Emas Index

8.58 6.58 13.33 4.49 19.67 7.89 -14.86 38.78 5.46 -3.73

1 year 30/11/13

- 30/11/14

(%)

1 year 30/11/12

- 30/11/13

(%)

1 year 30/11/11

- 30/11/12

(%)

1 year 30/11/10

- 30/11/11

(%)

1 year 30/11/09

- 30/11/10

(%)

1 year 30/11/08

- 30/11/09

(%)

1 year 30/11/07

- 30/11/08

(%)

1 year 30/11/06

- 30/11/07

(%)

1 year 30/11/05

- 30/11/06

(%)


- 30/11/05

(%)

KSGOF 7.40 20.50 6.96 8.12 16.35 26.31 -40.82 37.25 13.02 -12.16


2.37 16.22 11.26 0.20 16.68 42.76 -41.22 41.07 24.10 -8.29

1 year 30/06/13

- 30/06/14

(%)

1 year 30/06/12

- 30/06/13

(%)

1 year 30/06/11

- 30/06/12

(%)

1 year 30/06/10

- 30/06/11

(%)

1 year 30/06/09

- 30/06/10

(%)

1 year 30/06/08

- 30/06/09

(%)

1 year 30/06/07

- 30/06/08

(%)

1 year 30/06/06

- 30/06/07

(%)

1 year 30/06/05

- 30/06/06

(%)


- 30/06/05

(%)

KEIF 12.79 11.59 2.55 23.81 9.85 -16.32 -4.38 66.42 2.15 9.88


8.89 11.74 4.62 20.01 17.71 -13.29 -8.06 54.54 3.71 -6.80

1 year 31/03/13

- 31/03/14

(%)

1 year 31/03/12

- 31/03/13

(%)

1 year 31/03/11

- 31/03/12

(%)

1 year 31/03/10

- 31/03/11

(%)

1 year 31/03/09

- 31/03/10

(%)

1 year 31/03/08

- 31/03/09

(%)

1 year 31/03/07

- 31/03/08

(%)

1 year 31/03/06

- 31/03/07

(%)

1 year 31/03/05

- 31/03/06

(%)


- 31/03/05

(%)

KMGF 11.96 2.51 3.83 16.08 17.57 -13.59 6.54 20.92 6.47 5.37

A composite of FBM 100 (50%) and All MGS Index (50%)

5.74 4.70 4.80 11.45 26.67 -14.80 1.88 20.80 5.22 2.51


177

1 year 30/11/13

- 30/11/14

(%)

1 year 30/11/12

- 30/11/13

(%)

1 year 30/11/11

- 30/11/12

(%)

1 year 30/11/10

- 30/11/11

(%)

1 year 30/11/09 - 30/11/10

(%)

1 year 30/11/08

- 30/11/09

(%)

1 year 30/11/07

- 30/11/08

(%)

1 year 30/11/06

- 30/11/07

(%)

1 year 30/11/05

- 30/11/06

(%)


- 30/11/05

(%)

KDF 0.71 12.73 18.44 8.02 8.38 14.88 -27.15 14.57 14.41 5.39

A composite of FBM100 (60%) and All MGS Index (40%)

1.46 8.57 7.59 2.11 14.01 28.06 -23.48 18.92 14.68 3.86

1 year 30/09/13

- 30/09/14

(%)

1 year 30/09/12

- 30/09/13

(%)

1 year 30/09/11

- 30/09/12

(%)

1 year 30/09/10

- 30/09/11

(%)

1 year 30/09/09

- 30/09/10

(%)

1 year 30/09/08

- 30/09/09

(%)

1 year 30/09/07

- 30/09/08

(%)

1 year 30/09/06

- 30/09/07

(%)

1 year 30/09/05

- 30/09/06

(%)


- 30/09/05

(%)

KSBF -0.86 7.58 10.91 2.20 6.73 2.44 -10.92 24.77 3.00 5.79

A composite of FBMS (50%) and All Malaysian Government Investment Issue (50%)

5.07 5.93 14.01 -0.03 10.14 14.46 -13.32 26.27 4.59 -2.03

1 year 31/03/13

- 31/03/14

(%)

1 year 31/03/12

- 31/03/13

(%)

1 year 31/03/11

- 31/03/12

(%)

1 year 31/03/10

- 31/03/11

(%)

1 year 31/03/09

- 31/03/10

(%)

1 year 31/03/08

- 31/03/09

(%)

1 year 31/03/07

- 31/03/08

(%)

1 year 31/03/06

- 31/03/07

(%)

1 year 31/03/05

- 31/03/06

(%)


- 31/03/05

(%)

KIPF 0.70 3.60 5.31 6.35 3.34 2.02 0.74 6.61 5.29 6.44

All MGS Index 0.87 4.59 5.22 4.23 2.55 5.05 2.83 6.34 5.55 6.62

1 year 30/06/13

- 30/06/14

(%)

1 year 30/06/12

- 30/06/13

(%)

1 year 30/06/11

- 30/06/12

(%)

1 year 30/06/10

- 30/06/11

(%)

1 year 30/06/09

- 30/06/10

(%)

1 year 30/06/08

- 30/06/09

(%)

1 year 30/06/07

- 30/06/08

(%)

1 year 30/06/06

- 30/06/07

(%)

1 year 30/06/05

- 30/06/06

(%)


- 30/06/05

(%)

KBIF -0.29 2.13 3.08 2.86 3.17 5.28 -0.36 7.88 2.79 7.80

All Malaysian Government Investment Issue

2.52 2.72 5.32 4.25 4.74 10.35 -1.86 11.81 -0.52 -1.62

Source: Lipper IM and Novagni Analytics and Advisory Sdn Bhd

# The performance benchmark for Kenanga Balanced Fund has been changed to 60% FTSE-Bursa Malaysia 100 Index and 40% Maybank 12-month Fixed Deposit Rate on 29 October 2012. The previous benchmark was 60% FTSE-Bursa Malaysia 100 Index and 40% Benchmark 5-year MGS. The performance benchmark figures as shown above for year 2011 to year 2004 is reflective of the previous benchmark. # The performance benchmark for Kenanga Islamic Balanced Fund has been changed to 60% FTSE-Bursa Malaysia 100 Index and 40% Maybank 12-month GIA Rate on 29 October 2012. The previous benchmark was 60% FTSE-Bursa Malaysia 100 Index and 40% Benchmark 5-year Malaysian Government Investment Issues. The performance benchmark figures as shown above for year 2011 to year 2004 is reflective of the previous benchmark. # The performance benchmark for Kenanga Money Market Fund has been changed to Maybank Overnight Repo Rate on 29 October 2012. The previous benchmark was Maybank Overnight Rate. The performance benchmark figures as shown above for year 2011 to year 2008 is reflective of the previous benchmark. # The performance benchmark for Kenanga Islamic Money Market Fund has been changed to Maybank Overnight Repo Rate on 29 October 2012. The previous benchmark was Maybank 1-month GIA rate. The


178

performance benchmark figures as shown above for year 2011 to year 2008 is reflective of the previous benchmark. # The performance benchmark for Kenanga Shariah Growth Opportunities Fund has been changed to FTSE Bursa Malaysia Emas Shariah Index due to its conversion into a Shariah-compliant fund on 7 September 2010. The previous benchmark was FTSE Bursa Malaysia 100 Index. The performance benchmark figures as shown above for year 2009 to year 2005 is reflective of the previous benchmark. # The performance benchmark for Kenanga Diversified Fund has been changed to a composite of 60% FTSE Bursa Malaysia 100 Index and 40% RAM Quantshop MGS All Index on 15 August 2012. The previous benchmark was a 55% FTSE Bursa Malaysia 100 Index and 45% RAM Quantshop MGS All Index. The performance benchmark figures as shown above for year 2011 to year 2005 is reflective of the previous benchmark. # The performance benchmark for Kenanga Shariah Balanced Fund has been changed to a composite of 50% FTSE Bursa Malaysia Emas Shariah Index and 50% RAM Quantshop Malaysian Government Investment Issue due to its conversion into a Shariah-compliant fund on 16 October 2009. The previous benchmark was a composite of 50% KLSE Composite Index and 50% MGS Index. The performance benchmark figures as shown above for year 2008 to year 2005 is reflective of the previous benchmark.


179

Portfolio Turnover Ratio (PTR) and Management Expense Ratio (MER) for the Funds for the 3 most recent financial years Portfolio Turnover Ratio

The PTR refers to the measure of trading activity or how frequently assets within a fund are bought and sold by the managers. A fund with a 0.5 times portfolio turnover ratio, for example, replaces half of its holdings during the period under review. A fund with a high portfolio turnover rate will typically incur more transaction costs than one with a low portfolio turnover rate. The computation of PTR is as follows: PTR = (Total acquisitions of the Fund + Total disposals of the Fund) divided by 2 ------------------------------------------------------------------------------------------------------ Average NAV of the Fund calculated on a daily basis Management Expense Ratio

The MER is a ratio of the sum of the fees and the recoverable expenses of the Fund to the average value of the Fund calculated on a daily basis. It represents the inherent costs of operating a unit trust fund, which comprises management fee, trustee’s fee and expenses incurred in administrating the Fund. It provides a measure by which an investor can assess and compare the expenses incurred by the Fund to other funds. The ratio obtained is to be compared to that of other funds of the same category when selecting a fund for investment. In comparison of a fund’s expenses the lower the ratio the better. MER is usually expressed as an annual percentage of a fund’s average NAV calculated on a daily basis and referred to as an “expense ratio”. The computation of MER is as follows: MER = Management fee + Trustee fee + Fund’s administrative fees -------------------------------------------------------------------------------------- X 100 Average NAV of the Fund calculated on a daily basis Kenanga Premier Fund

Fund Name Management fees Trustee fees Fund Expenses* Total Annual**

RM % RM % RM % RM %

Kenanga Premier Fund

(FYE 28 Feb 2015) 1,482,499 1.50 49,417 0.05 26,927 0.02 1,558,843 1.57

* Excluding management fee, trustee’s fee and brokerage and transaction cost. ** Excluding brokerage and transaction cost

For the past 3 years/period Year Ended 28 Feb 2015

Period Ended 28 Feb 2014


Management Expense Ratio (MER) (%)

1.57# 1.86 1.65

Portfolio Turnover Ratio (PTR) (times)

0.86* 0.92 1.37

Asset allocation Equity: 75.3% Short term deposits and cash: 24.7%

Equity: 90.4% Short term deposits and cash: 9.6%


Management Expense Ratio

# MER of 1.57% indicates an expense of RM0.0157 for every RM1.00 of the average NAV of KPF during the financial year ended 28 February 2015. The MER has decreased compared to previous year mainly due to shorter period under review.

Portfolio Turnover Ratio

* PTR of the Fund has decreased to 0.86 times in comparison to 0.92 times previously. The decrease was due

to less trading activities incurred.

http://www.investorglossary.com/transaction-costs.htm


180

Asset Allocation

As at 28 February 2015, the Fund’s asset allocation stood at 75.3% in equities and the remaining 24.7% liquidity is held in cash. The increased in cash was due to the Fund taking in profits in the first quarter of 2015. Kenanga Growth Fund


RM % RM % RM % RM %

Kenanga Growth Fund (Financial period ended 31 May 2014)

2,805,385 2.11 121,846 0.09 42,978 0.04 2,970,209 2.24


For the past 3 period/years Period Ended 31 May 2014




2.24# 1.88 1.63


1.34* 0.49 0.49

Asset allocation Equity: 77.3% Short term deposits and cash: 22.7%




# MER of 2.24% indicates an expense of RM0.0224 for every RM1.00 of the average NAV of KGF during the financial period ended 31 May 2014. The MER has increased compared to previous year due to longer period during the financial period under review.


* PTR of the portfolio of KGF has turned-around 1.34 times compared to 0.49 times in the previous financial year. The increase was due to inflow of new fund.

Asset Allocation

As at 31 May 2014, the Fund’s equity exposure had decrease to 77.3% due mainly to inflow of new fund. Kenanga Islamic Fund


RM % RM % RM % RM %

Kenanga Islamic Fund (FYE 31 Dec 2014)

946,984 1.90 39,873 0.08 41,727 0.08 1,028,584 2.06


For the past 3 years Year Ended 31 Dec 2014




2.06# 2.06 2.53


0.48* 1.07 0.80

Asset Allocation

Shariah-compliant equity: 94.0% Short term Islamic deposits and cash: 6.0%




181


# MER ratio of 2.06% indicates an expense of RM0.0206 for every RM1.00 of the average NAV of KIF during

the financial year ended 31 December 2014. The MER is the same as previous financial year. Portfolio Turnover Ratio

* PTR of the Fund has decreased to 0.48 times in comparison to 1.07 times previously due to the Shariah-

complianct stock selection which the fund manager is comfortable to hold long term. Asset Allocation

As at 31 December 2014, the Fund’s Shariah-compliant equity exposure had increased to 94.0%. The increase in the invested level was due to the fund manager turning more positive in anticipation of a better market in December based on historical trend. Kenanga Syariah Growth Fund


RM % RM % RM % RM %

Kenanga Syariah Growth Fund (Financial period ended 31 May 2014)

1,185,762 2.12 52,345 0.09 38,427 0.07 1,276,534 2.28






2.28# 2.17 2.01


0.89* 0.64 0.58

Asset Allocation





# MER ratio of 2.28% indicates an expense of RM0.0228 for every RM1.00 of the average NAV of KSGF during the financial period ended 31 May 2014. The higher MER as compared to the previous financial year is due to longer period during the financial period under review.


*PTR of the portfolio of KSGF has turned-around 0.89 times compared to 0.64 times in the previous year. This indicated a higher level of trading activities (both buying and selling of assets) during the financial period under review.

Asset Allocation

As at 31 May 2015, the Fund’s Shariah-compliant equity exposure had decreased to 72.2%. The decrease waswas due to new injection of funds whilst the fund manager is turning more conservative due to geo political risks in Ukraine.


182



RM % RM % RM % RM %


(FYE 28 Feb 2015) 396,417 1.50 13,214 0.05 24,054 0.09 433,685 1.64






1.64# 1.96 2.23


0.76* 1.06 0.77

Asset Allocation

Equity: 47.9% Unquoted bonds: 37.7% Short term deposits and cash: 14.4%




# MER ratio of 1.64% indicates an expense of RM0.0164 for every RM1.00 of the average NAV of KBF during

the financial year ended 28 February 2015. The MER was lower against last financial period due mainly to shorter period under review.


* PTR of the Fund has decreased to 0.76 times in comparison to 1.06 times previously. This indicated a lower

trading activities for both equity and fixed income securities. Asset Allocation

The cash position has increased due to locking in of profits and rebalancing of the portfolio. Kenanga Islamic Balanced Fund


RM % RM % RM % RM %


(FYE 28 Feb 2015) 131,168 1.50 4,372 0.05 22,669 0.25 158,209 1.80






1.80# 2.18 2.56


0.57* 1.20 0.79

Asset Allocation

Shariah-compliant equity: 52.7% Unquoted sukuk: 34.3% Unquoted government guaranteed sukuk: 2.3% Short term Islamic deposits and cash: 10.7%

Shariah-compliant equity: 53.4% Unquoted sukuk: 36.0% Short term Islamic deposits and cash: 10.6%



183


# MER ratio of 1.80% indicates an expense of RM0.0180 for every RM1.00 of the average NAV of KIBF during

the financial year ended 28 February 2015. The MER is lower against last financial year mainly due to shorter period under review.


* PTR of the Fund has decreased to 0.57 times in comparison to 1.20 times previously. The lower PTR was due

to confidence in Shariah-compliant equities stock selection and lack of trading opportunities in sukuk. Asset Allocation

There were not much changes in the asset allocation for the Fund. Kenanga Bond Fund

Fund Name Management fees Trustee fees Fund Expenses* Total Annual

RM % RM % RM % RM %

Kenanga Bond Fund (FYE 31 Dec 2014)

73,249 1.00 18,002 0.25 22,924 0.31 114,175 1.56

* Excluding management fee and trustee’s fee.

For the past 3 years





1.56# 1.46 1.68


1.96* 1.85 0.88

Asset Allocation

Unquoted corporate bonds: 76.9% Unquoted government guaranteed bonds: 5.1% Short term deposits and cash: 18.0 %

Unquoted corporate bonds: 68.7% Unquoted government guaranteed bonds: 17.5% Short term deposits and cash: 13.8%

Unquoted corporate bonds: 75.8% Commercial papers: 3.6% Short term deposits and cash: 20.6%


# MER ratio of 1.56% indicates an expense of RM0.0156 for every RM1.00 of the average NAV of KBNF during the

financial year ended 31 December 2014. The MER has increased due to increase in total expense during the financial year under review.


* PTR ratio of the portfolio of KBNF has turned-around 1.96 times compared to 1.85 times in the previous year.

PTR is higher due to relatively more fund size changes during the financial year. Asset Allocation

As at 31 December 2014, 82% of the Fund was invested in bonds, of which 5.1% comprises government guaranteed bonds, and 76.9% is in corporate bonds. This is lower compared to 86.2% as at 31 December 2013, as liquidity is taken into consideration to accommodate for redemptions.


184



RM % RM % RM % RM %

Kenanga Malaysian Inc Fund (FYE 31 Jan 2015)

262,165 1.80 7,283 0.05 26,413 0.18 295,861 2.03


For the past 3 years/period Year Ended 31 Jan 2015

Period Ended 31 Jan 2014



2.03# 2.24 3.19


1.38* 1.29 1.58

Asset Allocation Equity: 86.6% Short term deposits and cash: 13.4%




# MER ratio of 2.03% indicates an expense of RM0.0203 for every RM1.00 of the average NAV of KMIF during

the financial year ended 31 January 2015. The MER is lower against last financial period due mainly to decrease in expenses during the financial year under review.


* PTR of the Fund has increased to 1.38 times in comparison to 1.29 times previously as there is an increase in

trading activities during the financial year under review. Asset Allocation

As at 31 January 2015, the asset allocation of the Fund stood at around 86.6% in equities and the balance of around 13.4% in liquidity. The decrease in equities was because the Fund was realising some profit in January 2015. Kenanga Cash Plus Fund


RM % RM % RM % RM %

Kenanga Cash Plus Fund (FYE 31 Oct 2014)

389,028 0.50 54,464 0.07 66,131 0.09 509,623 0.66


For the past 3 years Year Ended 31 Oct 2014




0.66# 0.62 0.62


0.71* 1.77 2.14

Asset Allocation

Unquoted corporate bonds: 49.8% Short term deposits and cash: 50.2%

Unquoted corporate bonds: 42.4% Commercial papers: 8.4% Unquoted government guaranteed bonds: 0.4% Short term deposits and cash: 48.8%



185


# MER ratio of 0.66% indicates an expense of RM0.0066 for every RM1.00 of the average NAV of KCPF during

the financial year ended 31 October 2014. The MER is higher against previous financial year mainly due to decrease in average fund size


* PTR of the Fund has decreased to 0.71 times in comparison to 1.77 times previously. The lower PTR was due

to fewer rebalancing trades during the financial year under review, as the Fund maintained high cash levels to accommodate fund flows.

Asset Allocation

The change in asset allocation was primarily due to fund flows. Fund outflows towards end of the financial year under review have resulted in higher exposure in short-term deposits and cash. Kenanga i-Enhanced Cash Fund


RM % RM % RM % RM %

Kenanga i-Enhanced Cash Fund (FYE 31 Oct 2014)

114,699 0.26 18,352 0.04 1,892 0.01 134,943 0.31


For the past 3 years Year Ended 31 Oct 2014




0.31# 0.21 0.72


0.11* - -

Asset Allocation

Unqouted sukuk: 9.3% Short-term Islamic deposits and cash: 90.7%

- Short-term Islamic deposits and cash: 100%


# MER ratio of 0.31% indicates an expense of RM0.0031 for every RM1.00 of the average NAV of KIECF during

the financial year ended 31 October 2014. The MER is higher due to increase in fees and expenses during the financial year under review.


* PTRis higher for the financial year under review due to increase in investing activities. Asset Allocation

The NAV of the Fund had been reduced to zero as at 30 October 2013. Towards middle of 2014, the Fund’s size had increased and able to invest in unquoted sukuk and short term Islamic deposits.



RM % RM % RM % RM %

Kenanga Islamic Money Market Fund (Financial period ended 31 May 2014)

162,901 0.71 20,246 0.09 21,098 0.09 204,245 0.89


186






0.89# 0.94 1.52


-* -* -

Asset Allocation Short term Islamic deposits and cash: 100%

Short term Islamic deposits and cash: 100%

Short term Islamic deposits and cash: 100%


# MER ratio of 0.89% indicates an expense of RM0.0089 for every RM1.00 of the average NAV of KIMMF during the

financial period ended 31 May 2014. The MER has decreased mainly due to increase in the average fund size during the financial period under review.


* The portfolio of KIMMF has turned-around of nil times (previous year, Nil). This means the fund manager had no

trades for the year. Asset Allocation

There is no change in the asset allocation of the Fund. Kenanga Money Market Fund


RM % RM % RM % RM %

Kenanga Money Market Fund (FYE 28 Feb 2015)

259,710 0.50 10,389 0.02 23,026 0.04 293,125 0.56



Perid Ended 28 Feb 2014



0.56# 0.71 0.64


1.05* 1.19 1.25

Asset Allocation





# MER ratio of 0.56% indicates an expense of RM0.0056 for every RM1.00 of the average NAV of KMMF during

the financial year ended 28 February 2015. The MER is lower against last financial period mainly due to shorter period under review.


* PTR of the Fund has decreased to 1.05 times in comparison to 1.19 times previously as the investments were

in longer tenure securities which had reduced the trading activities.


187

Asset Allocation

As at 28 February 2015, the Fund has increased its investment in unquoted corporate bonds for yield enhancement. Kenanga Blue Chip Fund


RM % RM % RM % RM %

Kenanga Blue Chip Fund (FYE 30 Sep 2014)

336,306 1.55 17,492 0.08 44,464 0.21 398,262 1.84


For the past 3 years Year Ended 30 Sep 2014

Year Ended 30 Sep 2013



1.84# 1.80 1.70


0.31* 3.84 6.06

Asset Allocation Equity: 93.2% Short-term deposits and cash: 6.8%

Equity: 86.3% Short-term deposits and cash: 13.7%



# MER ratio of 1.84% indicates an expense of RM0.0184 for every RM1.00 of the average NAV of KBCF during

the financial year ended 30 September 2014. The MER is higher against previous financial year mainly due to decrease in the average fund size during the financial year under review.


* PTR of the Fund has decreased to 0.31 times in comparison to 3.84 times previously.The lower PTR is due to

much lower than anticipated trading activities as a result of good market condition and resilient stock fundamentals.

Asset Allocation

As at 30 September 2014, the Fund’s equity exposure was 93.2%. The equity exposure was higher compared with 30 September 2013 mainly due to better market prospects. Kenanga Growth Opportunities Fund


RM % RM % RM % RM %

Kenanga Growth Opportunities Fund (FYE 31 Aug 2014)

123,249 1.55 17,237 0.21 45,250 0.57 185,736 2.33


For the past 3 years Year Ended 31 Aug 2014

Year Ended 31 Aug 2013

Year Ended 31 Aug 2012


2.33# 2.68 3.13


0.40* 5.01 7.69

Asset Allocation Equity: 77.0% Short-term deposits and cash: 23.0%




188


# MER ratio of 2.33% indicates an expense of RM0.0233 for every RM1.00 of the average NAV of KGOF during

the financial year ended 31 August 2014. The decrease in MER is due to increase in average fund size during the financial year under review.



level of trading activities during the financial year under review as a result of good market condition and resilient stock fundamentals.

Asset Allocation

During the year under review, the Fund has increased its equity exposure due to better market prospects. Kenanga Shariah Growth Opportunities Fund


RM % RM % RM % RM %

Kenanga Shariah Growth Opportunities Fund (FYE 30 Nov 2014)

136,067 1.55 14,993 0.17 35,525 0.40 186,585 2.12


For the past 3 years Year Ended 30 Nov 2014

Year Ended 30 Nov 2013



2.12# 2.63 2.54


0.76* 2.23 5.79

Asset Allocation

Shariah-compliant equity: 84.3% Short-term Islamic deposits and cash: 15.7%




# MER ratio of 2.12% indicates an expense of RM0.0212 for every RM1.00 of the average NAV of KSGOF

during the financial year ended 30 November 2014. The MER is lower against previous financial year mainly due to increase in the average fund size during the financial year under review.


* PTR of the Fund has decreased to 0.76 times in comparison to 2.23 times previously. This is due to a more

conservative strategy in terms of Shariah-compliant stock selection which reduces the exposure to “trading” orientated Shariah-compliant stocks.

Asset Allocation

The Fund’s Shariah-compliant equity exposure rose to 84.3% for the financial year under review due to the fund manager turning more positive in anticipation a better market in December 2014 based on historical trend. Kenanga Ekuiti Islam Fund


RM % RM % RM % RM %

Kenanga Ekuiti Islam Fund (FYE 30 Jun 2014)

169,867 1.55 18,100 0.17 22,710 0.21 210,677 1.93



189

For the past 3 years Year Ended 30 Jun 2013

Year Ended 30 Jun 2013



1.93# 2.02 1.88


0.55* 4.11 5.30

Asset Allocation





# MER ratio of 1.93% indicates an expense of RM0.0193 for every RM1.00 of the average NAV of KEIF during

the financial year ended 30 June 2014. The MER has decreased due to decrease in the total expense during the year under review.


* PTR of the Fund has decreased to 0.55 times in comparison to 4.11 times previously due to the adoption of a

more conservative strategy. Asset Allocation

The reduction in Shariah-compliant equities was due to high market valuation in terms of price earnings ratio (PER) especially for the FBM Small Cap index. Kenanga Managed Growth Fund


RM % RM % RM % RM %

Kenanga Managed Growth Fund (FYE 31 Mar 2014)

209,619 1.55 18,148 0.13 39,571 0.32 267,338 2.00


For the past 3 years Year Ended 31 Mar 2014

Year Ended 31 Mar 2013



2.00# 1.72# 1.69


1.34* 3.65* 4.33

Asset Allocation

Equity: 58.2% Unquoted bonds: 31.0% Short-term deposits and cash: 10.8%

Equity: 41.9% Unquoted bonds: 44.3% Unqouted government guaranteed bonds: 13.3% Short-term deposits and cash:0.5%

Equity: 48.5% Unquoted bonds: 28.4% Unqouted government guaranteed bonds: 7.9% Short-term deposits and cash: 15.2%


# MER ratio of 2.00% indicates an expense of RM0.0200 for every RM1.00 of the average NAV of KMGF during

the financial year ended 31 March 2014. The MER is higher due to lower average fund size in current financial year.


190



level of trading activities during the financial year under review. Asset Allocation

As at 31 March 2014, the Fund’s equity exposure had increased to 58.2% from 41.9%. The increase in equity exposure was due to to better economic situation and stock picking effort was enhanced. Kenanga Diversified Fund


RM % RM % RM % RM %

Kenanga Diversified Fund (FYE 30 Nov 2014)

238,005 1.55 16,290 0.10 40,192 0.26 294,487 1.91


For the past 3 years Year Ended 30 Nov 2014




1.91# 1.68 1.91


1.37* 1.61 4.53

Asset Allocation

Equity: 49.6% Unquoted bonds: 30.2% Unquoted government guaranteed bonds: 2.0% Short-term deposits and cash: 18.2%




# MER ratio of 1.91% indicates an expense of RM0.0191 for every RM1.00 of the average NAV of KDF during

the financial year ended 30 November 2014. The MER has increased due to decrease in the average fund size.


* PTR of the Fund has decreased to 1.37 times in comparison to 1.61 times previously. This reduction was due to

the Fund focused more on growth rather than trading stocks. Asset Allocation

The Fund’s equity exposure was reduced to 49.6% as at 30 November 2014 from 60.4% in 30 Novermber 2013 mainly because of cautious stance in equities and heavy fund redemption. Kenanga Shariah Balanced Fund


RM % RM % RM % RM %

Kenanga Shariah Balanced Fund (FYE 30 Sep 2014)

15,082 1.55 16,498 1.70 21,079 2.16 52,659 5.41



191

For the past 3 years Year Ended 30 Sep 2014




5.41# 2.11 1.94


2.38* 2.75 3.75

Asset Allocation


Shariah-compliant equity: 47.1% Unquoted government guaranteed sukuk: 27.5% Unquoted sukuk: 16.7% Short term Islamic deposits and cash: 8.7%

Shariah-compliant equity: 48.8% Unquoted government guaranteed sukuk: 10.5% Unquoted sukuk: 28.1% Short term Islamic deposits and cash: 12.6%


# MER ratio of 5.41% indicates an expense of RM0.0541 for every RM1.00 of the average NAV of KSBF during

the financial year ended 30 September 2014. The MER has increased due to decrease in average fund size. Portfolio Turnover Ratio

* PTR of the Fund has decreased to 2.38 times in comparison to 2.75 times previously. The lower PTR was

mainly due to less trading in sukuk and improved Shariah-compliant stock selection. Asset Allocation

As at 30 September 2014, the Fund’s Shariah-compliant equity exposure has increased to 51.7% from 47.1% previously. The increase was to take advantage of the opportunity present in Shariah-compliant equity exposure. Kenanga Income Plus Fund


RM % RM % RM % RM %

Kenanga Income Plus Fund (FYE 31 Mar 2014)

532,906 1.00 37,303 0.07 35,642 0.08 605,851 1.15


For the past 3 years Year Ended 31 Mar 2014




1.15# 1.12 1.13


0.90* 0.52 1.10

Asset Allocation

Unquoted bonds: 82.1% Unquoted government guaranteed bonds: 6.8% Short term deposits and cash: 11.1%

Unquoted bonds: 93.6% Short term deposits and cash: 6.4%

Unquoted bonds: 89.4% Unquoted government guaranteed bonds: 4.5% Collective investment schemes: 0.6% Short term deposits and cash: 5.5%


# MER ratio of 1.15% indicates an expense of RM0.0115 for every RM1.00 of the average NAV of KIPF during

the financial year ended 31 March 2014. The MER was higher due to lower average fund size in current financial year.


192


* PTR of the Fund has increased to 0.90 times in comparison to 0.52 times previously. The PTR is higher due to

relatively more fund size changes during the financial year under review. Asset Allocation

As at 31 March 2014 liquidity was maintained higher as compared to a year ago for potential new investments

when opportunity arises as yields was expected to be relatively volatile. Kenanga Bon Islam Fund


RM % RM % RM % RM %

Kenanga Bon Islam Fund (FYE 30 Jun 2014)

24,809 1.00 18,100 0.74 28,176 1.15 71,085 2.89


For the past 3 years Year Ended 30 Jun 2013




2.89# 1.77 1.78


0.82* 0.53 0.94

Asset Allocation

Unquoted sukuk: 57.8% Unquoted government guaranteed sukuk: 13.0% Short term Islamic deposits and cash: 29.2%




# MER ratio of 2.89% indicates an expense of RM0.0289 for every RM1.00 of the average NAV of KBIF during

the financial year ended 30 June 2014. The MER is higher against previous financial year mainly due to decrease in the average fund size during the financial year under review.


* PTR of the Fund has decreased to 0.82 times in comparison to 0.53 times previously due mainly to relatively

more fund size changes during the financial year under review. Asset Allocation

As at 30 June 2014, 70.8% of the Fund was invested in sukuk, of which 13.0% comprises sovereign and government sukuk, and 57.8% in corporate sukuk. This is lower compared to 85.5% as at 30 June 2013, as we were less optimistic on the local sukuk market outlook due to impending rate hike compared to the previous year.

THE AUDITED FINANCIAL STATEMENTS FOR THE FUNDS ARE DISCLOSED IN THE FUNDS’ ANNUAL REPORT AND THE ANNUAL REPORT IS AVAILABLE UPON REQUEST. PAST PERFORMANCES OF THE FUNDS ARE NOT INDICATIVE OF THEIR FUTURE PERFORMANCES. THE FUNDS’ ANNUAL REPORT IS AVAILABLE UPON REQUEST.


193

10. FEES, CHARGES, EXPENSES AND TRANSACTION DETAILS Single Pricing

Under the single pricing regime, both the Selling and Repurchase Price per Unit of the Funds will be quoted based on a single price i.e. the NAV per Unit of a Fund. Note: NAV per Unit will be rounded to four (4) decimal places for the purposes of publication of the NAV per Unit.

Incorrect Pricing

Subject to any relevant law, if there is an error in the pricing of the NAV per Unit of the Fund; the Manager will take immediate remedial action to correct the error. Rectification shall, where necessary, extend to the reimbursements of money as follows if the error is at or above the significant threshold of 0.5% of the NAV per Unit:

(a) if there is an over pricing in relation to the purchase and creation of Units, the Fund shall reimburse the

Unit Holder; (b) if there is an over pricing in relation to the repurchase of Units, the Manager shall reimburse the Fund; (c) if there is an under pricing in relation to the purchase and creation of Units, the Manager shall reimburse

the Fund; and (d) if there is an under pricing in relation to the repurchase of Units, the Fund shall reimburse the Unit Holder

or former Unit Holder. Subject to any regulatory requirements, the Manager shall have the right to amend, vary or revise the abovesaid limits or threshold from time to time. Selling Price of Units

The sales charge is a fee levied on the purchase of Units of a Fund, and is used to pay for marketing, advertising and distribution expenses of the Fund. The fee is deducted upfront from the purchase amount, leaving only the net amount invested in a Fund. The sales charge is calculated based on the Selling Price per Unit (which is the NAV per Unit) of the Funds as at the next valuation point after the application is received (“forward pricing”).

The following table sets out the amount of sales charge that will be imposed by each of our distributors in respect of the Funds.

Fund Name Sales Charge per Unit

KPF Direct sales staff of company and walk-in customers: up to 5.50% of the NAV per Unit

Agency sales: up to 5.50% of the NAV per Unit

IUTA: up to 5.50% of the NAV per Unit

Financial Planners: up to 5.50% of the NAV per Unit

KGF Direct sales staff of company and walk-in customers: up to 5.50% of the NAV per Unit





194


KIF Direct sales staff of company and walk-in customers: up to 5.50% of the NAV per Unit



Financial Planners:

up to 5.50% of the NAV per Unit

KSGF Direct sales staff of company and walk-in customers: up to 5.50% of the NAV per Unit




KAPTRF Direct sales staff of company and walk-in customers:

Agency sales:

IUTA:

Financial Planners:





KBF Direct sales staff of company and walk-in customers: up to 5.50% of the NAV per Unit



Financial Planners:


KIBF Direct sales staff of company and walk-in customers: up to 5.50% of the NAV per Unit




KBNF The Manager does not intend to impose any sales charge as this is a fixed income fund.

KMIF Direct sales staff of company and walk-in customers: up to 5.50% of the NAV per Unit




KCPF The Manager does not intend to impose any sales charge as this is a fixed income fund.

KIECF The Manager does not intend to impose any sales charge as this is a fixed income fund (Islamic).

KIMMF The Manager does not intend to impose any sales charge as this is a money market fund (Islamic).

KMMF The Manager does not intend to impose any sales charge as this is a money market fund.

KBCF Direct sales staff of company and walk-in customers:

Agency sales:

IUTA:

Financial Planners:





KGOF Direct sales staff of company and walk-in customers:

Agency sales:

IUTA:

Financial Planners:





KSGOF Direct sales staff of company and walk-in customers:

Agency sales:




195


IUTA:

Financial Planners:



KEIF Direct sales staff of company and walk-in customers:

Agency sales:

IUTA:

Financial Planners:





KMGF Direct sales staff of company and walk-in customers:

Agency sales:

IUTA:

Financial Planners:





KDF Direct sales staff of company and walk-in customers:

Agency sales:

IUTA:

Financial Planners:





KSBF Direct sales staff of company and walk-in customers:

Agency sales:

IUTA:

Financial Planners:





KIPF Direct sales staff of company and walk-in customers:

Agency sales:

IUTA:

Financial Planners:





KBIF Direct sales staff of company and walk-in customers:

Agency sales:

IUTA:

Financial Planners:





Note: Investors who invest in any Funds through the EPF Members’ Investment Scheme pay a lower sales charge which is 3% of the NAV per Unit (or such other maximum rate that may be allowed by the EPF from time to time). The Manager may waive or reduce the sales charge imposed. Investors may also negotiate for a lower sales charge with their preferred distributor, subject to the respective channels’ qualifying criterion.


196

Illustration

Assuming: Fund Kenanga Premier Fund Day 31 March 20XX

NAV (before deducting management fee and trustee fee) RM276,094,332.47 Less management fee – calculated on daily basis (1.5% per annum / 365 days) RM11,346.34 Less goods and services tax (GST) 6% on management fee RM680.78 Less trustee fee – calculated on daily basis (0.05% per annum / 365 days) RM378.21 Less goods and services tax (GST) 6% on trustee fee RM22.69

NAV (after deducting management fee, trustee fee, GST on management fee and GST on trustee fee ) RM276,081,904.44 Units in Circulation (Units) 552,163,808.89

NAV per Unit RM0.5000

The NAV per Unit of the Fund is the Selling Price per Unit. Assuming the Manager is charging a sales charge of 5.50% of the Selling Price per Unit for all transactions:

NAV per Unit RM0.5000 Sales charge 5.50% of the Selling Price per Unit + 6% GST If you make a payment of RM10,000, the amount to be invested in a Fund and the sales charge to be paid by you are calculated as follows: Amount to be invested in a Fund: RM10,000/[1 + 0.055 + (6% GST on 5.5%)] = RM10,000/(1+0.055+0.0033) = RM9,449.12 Units issued to you: RM9,449.12/RM0.5000 = 18,898.23 Units Sales charge (including GST) to be paid by you: RM10,000 – RM9,449.12 = RM550.88 Sales charge (excluding GST) to be paid by you: RM550.88/1.06 = RM519.70 GST on sales charge to be paid by you: RM550.88 – RM519.70 = RM31.18 Note: the Manager reserves the right to accept or reject any application in whole or part thereof without assigning any reason. Repurchase Price of Units

Fund Name Repurchase Charge

KPF, KGF, KIF, KSGF, KAPTRF, KBF, KIBF, KBNF, KMIF, KIMMF, KMMF, KCPF, KIECF, KBCF, KGOF, KSGOF, KEIF, KMGF, KDF, KSBF, KIPF and KBIF

The buying (or repurchase) price of a Unit is calculated by dividing the NAV of the Fund at the end of the Business Day (forward price) on which the written request to repurchase the Units is received by the Manager by the total number of Units in issue on that day. There is NO repurchase charge levied on the repurchase request.


197

If a registered holder redeems RM10,000.00, and the Repurchase Price per Unit (which is the NAV per Unit) is RM0.5000, he would redeem 20,000 Units. Please refer to the illustration below as to how the above is calculated.

NAV per Unit RM0.5000 Repurchase charge 0% of the NAV per Unit If you decide to redeem an amount of RM10,000, the Units to be redeemed shall be calculated as follows: Amount to be redeemed from the Fund: RM10,000/(1 + 0) = RM10,000 Units redeemed by you: RM10,000/RM0.5000 = 20,000 Units Repurchase Charge to be paid by you: None as there is no repurchase charge. Commission

The Manager may, at its sole discretion, give the benefit of the whole or part of the sales charge as selling commission to its distribution agents.

Where Units can be Bought and Sold

Investors are required to complete application forms, which are available at: (a) Business office of the Manager (refer to Corporate/Offices’ Directory); (b) Agency Offices (refer to Offices’ Directory); (c) Approved Institutional Unit Trust Advisers (IUTAs)

HSBC Bank Malaysia Berhad; RHB Bank Berhad; Standard Chartered Bank Malaysia Berhad; Standard Chartered Saadiq Berhad; OCBC Bank Malaysia Berhad; Alliance Bank (Malaysia) Berhad; HSBC Amanah Malaysia Berhad; CIMB Bank Berhad; CIMB Investment Bank Berhad; Kenanga Investment Bank Berhad; Hong Leong Bank Berhad; AmBank (M) Berhad; United Overseas Bank (Malaysia) Berhad; Kuwait Finance House (Malaysia) Berhad; Bank Muamalat Malaysia Berhad; Apex Investment Services Berhad; Phillip Mutual Berhad; iFast Capital Sdn Bhd; Malacca Securities Sdn Bhd; and Any other appointed IUTAs from time to time.

(d) Tied agents of the Manager throughout Malaysia.

For the convenience of applicants, all approved IUTAs and other appointed agents in Malaysia are authorised to accept the application forms accompanied by the necessary remittance for onward transmission to the Manager (refer to Directory of the Manager’s Offices and List of IUTA, page 8). However, please be informed that the approved IUTA may not distribute all Funds covered in this Master Prospectus. The Funds may offer the following plans: (a) “Cash Plan” whereby an investor invests on a lump sum basis;

(b) “Financing Plan” which is a personalised financial borrowing plan;

(c) “EPF Plan” whereby an eligible EPF member can withdraw his/her EPF (Account 1) to invest in the Funds;

(d) “Easy Saver Plan” which is a monthly regular saving plan.

The cut-off time for making an application for Units of the Funds is 4.00 p.m. on any Business Day, save for, KIMMF and KMMF which is at 11 a.m. on any Business Day. Application for Units made before the aforesaid cut-off times


198

will be issued Units at the Selling Price per Unit calculated at the next valuation point (i.e. “forward pricing”). The cut-off time will be determined based on the time and date stamp made by the Manager. Where an application is received after the cut-off times as set out above, the request will be deemed to have been received on the next Business Day. INVESTORS ARE ADVISED NOT TO MAKE PAYMENT IN CASH TO ANY INDIVIDUAL AGENT WHEN PURCHASING UNITS OF A FUND. Minimum Initial and Additional Investment

Fund Name Minimum Initial and Additional Investment

KPF, KGF, KIF, KSGF, KAPTRF, KBF, KIBF, KBNF, KMIF, KCPF, KIECF, KIMMF, KMMF, KBCF, KGOF, KSGOF, KEIF, KMGF, KDF, KSBF, KIPF and KBIF

An investor may begin investment in the Fund with a minimum purchase of One Thousand Ringgit Malaysia (RM1,000)*. The Manager may, at its sole discretion, limit

the number of Units that any one investor can invest in; the limits of investment imposed by the Manager may differ from investor to investor arising from unavailability of Units. Additional investments can be made with a minimum of One Hundred Ringgit Malaysia (RM100)*. This is again subject to a limit which may be placed at the sole

discretion of the Manager. * Please note that the RM1,000 and RM100 are inclusive of the amount invested into the Fund and the sales charge that is imposed on an investor. The Manager reserves the right to allow for such other lower amount of minimum initial and additional investment. * Investors who invest through the EPF Members’ Investment Scheme is required to invest a minimum of One Thousand Ringgit Malaysia (RM1,000).

Redeeming Your Investment

The Funds do not have any restriction on the frequency of redemption. You may request the Manager to repurchase all or a minimum of 500 Units per transaction (a minimum of 500 Units to remain in account at any time) at any time by simply completing the repurchase form and returning it to the Manager through our appointed agents or direct to our business office. The cut-off time for making a redemption request in respect of Units of the Funds is 4.00 p.m. on any Business Day, save for, KIMMF and KMMF which is at 11 a.m. on any Business Day. Redemption requests received by us before the aforesaid cut-off times will be transacted at the Repurchase Price per Unit calculated at the next valuation point on which the request was received (i.e. “forward pricing”). The cut-off time will be determined based on the time and date stamp made by the Manager. Where the redemption request is received after the cut-off times as set out above, the request will be deemed to have been received on the next Business Day. Payments of redemption proceeds will be made within ten (10) days from the date at which a redemption request is deemed received (except for KIMMF, KMMF, KCPF and KIECF where payment will be made on the next Business Day if the repurchase request is received by the Manager before the aforesaid cut-off times on any Business Day).

However, if the redemption request leaves a Unit Holder with less than 500 Units (Minimum Holdings), the Manager will automatically liquidate the balance of the Units held in the Unit Holder’s account. * The Manager reserves the right to allow for such other lower amount of minimum redemption amount. Switching Option

Switching is a facility that we offer to our Unit Holders. This facility is a convenient way of converting Units of 1 Fund to another fund that we manage, in response to changing market conditions or changes in your investment goals. Unit Holders may switch into or out of any of the funds which are managed by the Manager. The minimum number of Units for each switching transaction is 500 Units or such other lower amount as the Manager in its sole discretion allows.


199

Application for switching of Units of the Funds should be made before the cut-off time of 4.00 p.m. on any Business Day, except for KIMMF and KMMF which is at 11 a.m. on any Business Day. Where the application for switching of Units of the Funds are received after the aforesaid cut-off times, the application for switching of Units will be deemed to have been received on the next Business Day. In executing his/her transaction, the Unit Holder must ensure that he/she maintain a minimum of 500 Units in his/her account with the respective Funds if he/she intends to stay invested with the Funds. In the event a switching request leaves a Unit Holder with less than 500 Units (Minimum Holdings), the Manager will automatically switch the balance of the Units held in the Unit Holder’s account into the fund selected by the Unit Holder. The minimum number of Units for each switching transaction is 500 Units. Switching is treated as a withdrawal from one (1) fund and an investment into another fund. A Unit Holder switching from a fund with a lower sales charge, to a fund with a higher sales charge will pay the difference in sales charge between the sales charge of these two (2) funds. If a Unit Holder switches from one (1) fund with higher sales charge to another fund with a lower sales charge, the Unit Holder will switch at the NAV per unit of the another fund.

Switching from Shariah-compliant fund to a conventional fund is discouraged especially for Muslim Unit Holders. Transfer of Units

Units of any of the Funds are transferable without any fee and restrictions. A copy of the “Transfer Form” can be obtained from the Manager’s office. However, if the transfer request leaves a Unit Holder with less than 500 Units (Minimum Holdings), the Manager will not proceed with the transfer request and the transaction is considered void until the Unit Holder makes a fresh application for the transfer request. Cooling-Off Right

A cooling-off right refers to the right of the investor to obtain a refund of his/her investment if he/she so requests within the cooling-off period (within six (6) Business Days from the date of receipt of application). This is to allow investors the opportunity to reverse their investment decision that could have been unduly influenced by certain external elements or factors (EPF investors are subject to EPF’s terms and conditions). The cooling-off right is only given to an investor, other than those listed below, who is investing for the first time in any unit trust funds managed by the Manager:

(i) a corporation or institution;

(ii) a staff of the Manager; and

(iii) persons registered to deal in unit trust funds of the Manager.

Within the cooling-off period, the refund to the investors shall not be less than the sum of:

(a) the NAV of the Units on the day the Units were purchased; and

(b) the sales charge originally imposed on the day the Units were purchased.

In other words, the investors shall be refunded their “original investment proceeds”, within ten (10) days (from the date of receipt of the cooling-off notice by the investors). EPF investors are subject to the terms and conditions of the EPF. Any application for cooling-off must be made before the cut-off time of 4.00 p.m. on any Business Day.

Illustration

A first time investor invests RM10,000.00 on 31 March 20XX at the following prices: Amount Paid by Investor: RM10,000.00 Less sales charge (including GST) (5.50% of selling price + 6% GST on sales charge): RM 550.88 Amount Invested into the Fund: RM 9,449.12 Add sales charge (including GST): RM 550.88 Total Refunded Amount: RM10,000.00


200

Annual Management Fee

Fund Name Annual Management Fee

KPF An annual management fee of 1.50 per centum (%) of the NAV of the Fund per annum.

KGF An annual management fee of 1.50 per centum (%) of the NAV of the Fund per annum.

KIF An annual management fee of 1.90 per centum (%) of the NAV of the Fund per annum.

KSGF An annual management fee of 1.50 per centum (%) of the NAV of the Fund per annum.

KAPTRF An annual management fee of 1.75 per centum (%) of the NAV of the Fund per annum.

KBF An annual management fee of 1.50 per centum (%) of the NAV of the Fund per annum.

KIBF An annual management fee of 1.50 per centum (%) of the NAV of the Fund per annum.

KBNF An annual management fee of 1.00 per centum (%) of the NAV of the Fund per annum.

KMIF An annual management fee of 1.80 per centum (%) of the NAV of the Fund per annum.

KCPF An annual management fee of up to 0.75 per centum (%) of the NAV of the Fund per annum.

KIECF An annual management fee of up to 0.75 per centum (%) of the NAV of the Fund per annum.

KIMMF An annual management fee of up to 0.50 per centum (%) of the NAV of the Fund per annum.

KMMF An annual management fee of up to 0.50 per centum (%) of the NAV of the Fund per annum.

KBCF An annual management fee of up to 1.55 per centum (%) of the NAV of the Fund per annum.

KGOF An annual management fee of up to 1.55 per centum (%) of the NAV of the Fund per annum.

KSGOF An annual management fee of up to 1.55 per centum (%) of the NAV of the Fund per annum.

KEIF An annual management fee of up to 1.55 per centum (%) of the NAV of the Fund per annum.

KMGF An annual management fee of up to 1.55 per centum (%) of the NAV of the Fund per annum.

KDF An annual management fee of up to 1.55 per centum (%) of the NAV of the Fund per annum.

KSBF An annual management fee of up to 1.55 per centum (%) of the NAV of the Fund per annum.

KIPF An annual management fee of up to 1.00 per centum (%) of the NAV of the Fund per annum.

KBIF An annual management fee of up to 1.00 per centum (%) of the NAV of the Fund per annum.

The management fee is computed and accrued on a daily basis and payable monthly. Annual Trustee’s Fee

Fund Name Annual Trustee Fee

KPF 0.05 per centum (%) of the NAV of the Fund per annum, calculated on a daily basis (excluding foreign sub-custodian fee and charges).

KGF 0.05 per centum (%) of the NAV of the Fund per annum, calculated on a daily basis.

KIF 0.08 per centum (%) of the NAV of the Fund per annum, subject to a minimum of RM18,000 per annum, calculated on a daily basis (excluding foreign sub-custodian fee and charges).

KSGF 0.05 per centum (%) of the NAV of the Fund per annum, calculated on a daily basis.

KAPTRF 0.07 per centum (%) of the NAV of the Fund per annum, subject to a minimum of RM16,000 per annum, calculated on a daily basis (excluding foreign sub-custodian fee and charges).

KBF 0.05 per centum (%) of the NAV of the Fund per annum, calculated on a daily basis (excluding foreign sub-custodian fee and charges).

KIBF 0.05 per centum (%) of the NAV of the Fund per annum, calculated on a daily basis (excluding foreign sub-custodian fee and charges).

KBNF 0.08 per centum (%) of the NAV of the Fund per annum, subject to a minimum of RM18,000 per annum, calculated on a daily basis.


201

Fund Name Annual Trustee Fee

KMIF 0.05 per centum (%) of the NAV of the Fund per annum, calculated on a daily basis.

KCPF 0.07 per centum (%) of the NAV of the Fund per annum, subject to a minimum of RM9,000 per annum, calculated on a daily basis.

KIECF 0.08 per centum (%) of the NAV of the Fund per annum, subject to a minimum of RM9,000 per annum, calculated on a daily basis.

KIMMF 0.02 per centum (%) of the NAV of the Fund per annum, calculated on a daily basis.

KMMF 0.02 per centum (%) of the NAV of the Fund per annum, calculated on a daily basis.

KBCF 0.07 per centum (%) of the NAV of the Fund per annum, subject to a minimum of RM9,000 per annum, calculated on a daily basis.

KGOF 0.07 per centum (%) of the NAV of the Fund per annum, subject to a minimum of RM9,000 per annum, calculated on a daily basis.

KSGOF 0.07 per centum (%) of the NAV of the Fund per annum, subject to a minimum of RM9,000 per annum, calculated on a daily basis.

KEIF 0.07 per centum (%) of the NAV of the Fund per annum, subject to a minimum of RM9,000 per annum, calculated on a daily basis.

KMGF 0.07 per centum (%) of the NAV of the Fund per annum, subject to a minimum of RM9,000 per annum, calculated on a daily basis.

KDF 0.07 per centum (%) of the NAV of the Fund per annum, subject to a minimum of RM9,000 per annum, calculated on a daily basis.

KSBF 0.07 per centum (%) of the NAV of the Fund per annum, subject to a minimum of RM9,000 per annum, calculated on a daily basis.

KIPF 0.07 per centum (%) of the NAV of the Fund per annum, subject to a minimum of RM9,000 per annum, calculated on a daily basis.

KBIF 0.07 per centum (%) of the NAV of the Fund per annum, subject to a minimum of RM9,000 per annum, calculated on a daily basis.

The trustee fee is computed and accrued on a daily basis and payable monthly. All fees and charges payable to the Manager and the Trustee are subject to goods and services tax as imposed by the government or other authorities from time to time. Funds’ Expenses These include the following: (a) Commission paid to brokers; (b) Auditor’s fee; (c) Tax adviser’s fee; (d) Valuation fee; (e) Taxes; (f) Foreign sub-custodian charges (where applicable); (g) Shariah advisory fee (where applicable); (h) Annual/interim reports; (i) Independent investment committee member fee; and (j) Any other expenses permitted to be charged to the Fund by the Deed. Policy on Stockbroking, Rebates and Soft Commissions

It is the policy of the Manager to credit all stockbroking, rebates on account of each Fund into the accounts of the respective Funds. Soft commissions received from brokers will be retained by the Manager as goods and services, such as research materials, data and quotation services, computer hardware and software incidental to the investment management of the Funds and investment related publications which are of demonstrable benefit to the Unit Holders. Soft commissions are retained by the Manager for purchasing goods and services that are of demonstrable benefit to the Unit Holders of the Fund and are in the form of research and advisory services that assist in the decision making process relating to the investment of the Funds (i.e. research materials, data and quotation services, computer software and investment advisory services).


202

Facsimile Instruction Facility

For KCPF, KIECF, KIMMF and KMMF, you can give us a facsimile instruction to make withdrawals. The fax number is 03-2057 3711. Before using this facility, you will first need to read and understand the facsimile instruction facility conditions mentioned below. By ticking “Yes” for the facsimile instruction facility on the investment application form you are deemed to have accepted the facsimile instruction facility conditions. Facsimile instruction facility conditions: 1. Whilst we exercise every care in ensuring the legitimacy of a facsimile instruction, there is still a risk that

fraudulent facsimile redemption requests in respect of your account can be made by someone who has access to your Fund account number and a copy of your signature.

2. You accept full responsibility for any loss arising as a result of us acting upon instructions given in a facsimile which bears your Fund account number and a signature which is or appears to be your signature or a signature of an authorized signatory of the account.

3. You release and indemnify us and the Trustee against all claims and demands in respect of any liabilities arising as a result of us acting upon instructions given in a facsimile even if those claims/demands are not genuine.

4. You agree that neither you nor any person claiming through you has any claims against us or the Trust or the Trustee in relation to a payment made or action taken by us under the facsimile instruction facility if the payment is made in accordance with these conditions.

5. These terms and conditions are in addition to any requirements for giving instructions to us. 6. We may cancel this facility in the following instances:

a. immediately, if you do not comply with any of these conditions mentioned in this Master Prospectus; or b. at any time, after giving you reasonable notice.

7. We may change the conditions but only after notifying you in writing. 8. By signing on the investment application form and requesting for the facsimile instruction facility, you are deemed

to have read and understood the terms and conditions governing the operations of the facsimile instruction facility and agree to abide by them.

THERE ARE FEES AND CHARGES INVOLVED AND INVESTORS ARE ADVISED TO CONSIDER THE FEES AND CHARGES BEFORE INVESTING IN THE FUNDS.



203

11. SALIENT TERMS OF THE DEEDS This section of the Master Prospectus provides an extract of the salient terms of the deeds governing the Funds.

a) Rights and Liabilities of Unit Holders

A Unit Holder has the right, amongst others, to the following:

(a) To receive distribution of income (if any), to participate in any increase in the value of the Units and to enjoy such other rights and privileges as are provided for in the Deed for the Fund;

(b) To call for Unit Holders’ meetings, and to vote for the removal of the Trustee or the Manager through a special resolution;

(c) To exercise cooling-off rights (if applicable); and (d) To receive annual and interim reports.

However, no Unit Holder shall be entitled to require the transfer to him of any of the investments or assets of the Fund or be entitled to interfere with or question the exercise by the Trustee, or the Manager on its behalf, of the rights of the Trustee as the registered owner of such investments and assets.

b) Liabilities of Unit Holders

(a) No Unit Holder is liable for any amount in excess of the purchase price paid for the Units as

determined pursuant to the Deed at the time the Units were purchased; and (b) A Unit Holder shall not be under any obligation to indemnify the Manager and/or the Trustee in

the event that the liabilities incurred by the Manager and/or the Trustee in the name of or on behalf of the Fund pursuant to and/or in the performance of the provisions of the Deed exceed the value of the assets of the Fund, and any right of indemnity of the Manager and/or the Trustee shall be limited to recourse to the Fund.

c) Provisions regarding Unit Holders Meetings

(i) Quorum Required for Convening a Unit Holders’ Meeting

The quorum required for a meeting of the Unit Holders shall be five (5) Unit Holders, whether present in person or by proxy, provided that if the Fund has five (5) or less Unit Holders, the quorum required for a meeting of the Unit Holders of the Fund shall be two (2) Unit Holders, whether present in person or by proxy; if the meeting has been convened for the purpose of voting on a special resolution, the Unit Holders present in person or by proxy must hold in aggregate at least twenty five per centum (25%) of the Units in circulation at the time of the meeting.

(ii) Unit Holders’ Meeting convened by Unit Holders

Unless otherwise required or allowed by the relevant laws, the Manager shall, within twenty-one (21) days of receiving a direction from not less than fifty (50) or one-tenth (1/10) of all the Unit Holders, summon a meeting of the Unit Holders by: (a) sending by post at least seven (7) days before the date of the proposed meeting a

notice of the proposed meeting to all the Unit Holders; (b) publishing at least fourteen (14) days before the date of the proposed meeting an

advertisement giving notice of the proposed meeting in a national language newspaper published daily and another newspaper approved by the relevant authorities; and

(c) specifying in the notice the place and time of the meeting and the terms of the resolutions

to be proposed at the meeting.

The Unit Holders may direct the Manager to summon a meeting for any purpose including, without limitation, for the purpose of:

(a) requiring the retirement or removal of the Manager; (b) requiring the retirement or removal of the Trustee; (c) considering the most recent financial statements of the Fund; (d) giving to the Trustee such directions as the meeting thinks proper; or (e) considering any matter in relation to the Deed;


204

provided always that the Manager shall not be obliged to summon such a meeting unless direction has been received from not less than fifty (50) or one-tenth (1/10) of all the Unit Holders.

(iii) Unit Holders’ Meeting convened by Manager

Unless otherwise required or allowed by the relevant laws, the Manager may convene a Unit Holders’ meeting by giving Unit Holders’ a 14 day written notice specifying the place, time and terms of the resolutions to be proposed.

(iv) Unit Holders meeting convened by the Trustee

The Trustee may convene a Unit Holders’ meeting by giving Unit Holders’ a 14 day written notice specifying the place, time and terms of the resolutions to be proposed for any purpose including, without limitation, for the purpose of:

(a) requiring the retirement or removal of the Manager;

(b) giving instructions to the Trustee or the Manager if the Trustee considers that the investment management policies of the Manager are not in the interests of Unit Holders;

(c) securing the agreement of the Unit Holders to release the Trustee from any liability;

(d) deciding on the next course of action after the Trustee has suspended the sale and redemption of Units; and

(e) deciding on the reasonableness of the annual management fee charged to the Fund.

In the circumstances where:

(a) the Manager is in liquidation,

(b) in the opinion of the Trustee, the Manager has ceased to carry on business, or

(c) in the opinion of the Trustee, the Manager has, to the prejudice of Unit Holders, failed to comply with the Deed or contravened any of the provisions of the Act,

the Trustee shall summon a Unit Holders’ meeting by sending by post a notice of the proposed meeting to the Unit Holders at least 21 days before the date of the proposed meeting; and publishing at least 21 days before the date of the proposed meeting an advertisement giving notice of the meeting in a national language newspaper published daily and another newspaper permitted by the relevant authorities.

d) Termination of the Fund (i) Circumstances that may lead to the termination of the Fund

A special resolution is passed at a Unit Holders’ meeting to terminate or wind up the Fund, following occurrence of events stipulated under section 301(1) of the Act and the court has confirmed the resolution, as required under section 301(2) of the Act;

A special resolution is passed at a Unit Holders’ meeting to terminate or wind up the Fund;

The Fund has reached its maturity date as specified in the Deed (if applicable); and

The effective date of an approved transfer scheme (if any) has resulted in the Fund, which is the subject of the transfer scheme, being left with no asset/property.

Upon the termination of the Fund, the Trustee shall:

(a) sell all the assets of the Fund then remaining in its hands and pay out of the Fund any

liabilities of the Fund; such sale and payment shall be carried out and completed in such manner and within such period as the Trustee considers to be in the best interests of the Unit Holders; and

(b) from time to time distribute to the Unit Holders, in proportion to the number of Units held by

them respectively:

i) the net cash proceeds available for the purpose of such distribution and derived from the sale of the investments and assets of the Fund less any payments for liabilities of the Fund; and

ii) any available Cash Produce; provided always that the Trustee shall not be bound, except in the case of final distribution, to distribute any of the moneys for the time being in his hands the amount of which is insufficient for


205

payment to the Unit Holders of fifty (50) sen in respect of each Unit and provided also that the Trustee shall be entitled to retain out of any such moneys in his hands full provision for all costs, charges, taxes, expenses, claims and demands incurred, made or anticipated by the Trustee in connection with or arising out of the winding-up of the Fund and, out of the moneys so retained, to be indemnified against any such costs, charges, taxes, expenses, claims and demands; each such distribution shall be made only against the production of such evidence as the Trustee may require of the title of the Unit Holder relating to the Units in respect of which the distribution is made.

In the event Fund is terminated, the Trustee shall be at liberty to call upon the Manager to grant the Trustee, and the Manager shall so grant, a full and complete release from the Deed and the Manager shall indemnify the Trustee against any claims arising out of the Trustee's execution of the Deed provided always that such claims have not been caused by any failure on the part of the Trustee to exercise the degree of care and diligence required of a trustee as contemplated by the Deed and all relevant laws. The Trustee shall, as soon as it becomes aware that the Fund is to be terminated and wound-up, inform the relevant authorities of the same. Where the termination of the Fund and the winding-up of the Fund has been occasioned by any of the events set out herein;

(a) if the Manager has gone into liquidation, except for the purpose of reconstruction or amalgamation upon terms previously approved in writing by the Trustee and the relevant authorities;

(b) if, in the opinion of the Trustee, the Manager has ceased to carry on business; or (c) if, in the opinion of the Trustee, the Manager has to the prejudice of Unit Holders failed to

comply with the provisions of the Deed or contravened any of the provisions of any relevant law;

the Trustee shall summon for a Unit Holders meeting to get directions from the Unit Holders and also arrange for a final review and audit of the final accounts of the Fund by the auditor of the Fund; in all other cases of termination of the trust and winding-up of the Fund, such final review and audit by the auditor of the Fund shall be arranged by the Manager.

e) The maximum fees and charges that may be imposed by the Manager and the steps to be taken

by the Manager to increase such fees and charges

i) Maximum Rate of Direct Fees and Charges allowable by the Deed.

Fund Name Maximum Sale Charge Maximum Repurchase Charge

KPF 10% of the NAV per Unit of the Fund 10% of the NAV per Unit of the Fund

KGF 10% of the NAV per Unit of the Fund Nil

KIF 10% of the NAV per Unit of the Fund Nil

KSGF 10% of the NAV per Unit of the Fund Nil

KAPTRF 6% of the NAV per Unit of the Fund Nil

KBF 10% of the NAV per Unit of the Fund Nil

KIBF 10% of the NAV per Unit of the Fund 10% of the NAV per Unit of the Fund

KBNF 5% of the NAV per Unit of the Fund Nil

KMIF 6.50% of the NAV per Unit of the Fund Nil

KCPF 5% of the NAV per Unit of the Fund 5% of the NAV per Unit of the Fund

KIECF 8% of the NAV per Unit of the Fund 5% of the NAV per Unit of the Fund

KIMMF Nil Nil

KMMF Nil Nil

KBCF 8% of the NAV per Unit of the Fund 8% of the NAV per Unit of the Fund


206

I ii) Maximum Rate of Indirect Fees and Charges allowable by the Deed.

Fund Name Maximum Annual Management Fee Maximum Trustee Fee

KPF 2.0% of the NAV of the Fund 0.05% of the NAV of the Fund per

annum

KGF 1.5% of the NAV of the Fund 0.05% of the NAV of the Fund per

annum

KIF 2.5% of the NAV of the Fund 0.1% of the NAV of the Fund subject to

a minimum of RM18,000 per annum

KSGF 1.5% of the NAV of the Fund 0.05% of the NAV of the Fund per

annum

KAPTRF 2.0% of the NAV of the Fund

0.07% of the NAV of the Fund subject to a minimum of RM16,000 per annum (excluding foreign custodian fees and

charges)

KBF 2.0% of the NAV of the Fund 0.05% of the NAV of the Fund per

annum

KIBF 2.5% of the NAV of the Fund 0.05% of the NAV of the Fund per

annum

KBNF 2.5% of the NAV of the Fund 0.1% of the NAV of the Fund subject to

a minimum of RM18,000 per annum

KMIF 2.0% of the NAV of the Fund 0.05% of the NAV of the Fund per

annum

KCPF 3.0% of the NAV of the Fund 0.07% of the NAV of the Fund per annum, subject to a minimum of

RM9,000 per annum

KIECF 3.0% of the NAV of the Fund 0.08% of the NAV of the Fund per annum, subject to a minimum of

RM9,000 per annum

KIMMF 1.0% of the NAV of the Fund 0.02% of the NAV of the Fund per

annum

KMMF 1.0% of the NAV of the Fund 0.02% of the NAV of the Fund per

annum

KBCF 3.0% of the NAV of the Fund 0.07% of the NAV of the Fund per annum, subject to a minimum of

RM9,000 per annum

KGOF 3.0% of the NAV of the Fund 0.07% of the NAV of the Fund per annum, subject to a minimum of

RM9,000 per annum

KSGOF 3.0% of the NAV of the Fund 0.07% of the NAV of the Fund per annum, subject to a minimum of

KGOF 8% of the NAV per Unit of the Fund 8% of the NAV per Unit of the Fund

KSGOF 8% of the NAV per Unit of the Fund 8% of the NAV per Unit of the Fund

KEIF 8% of the NAV per Unit of the Fund 8% of the NAV per Unit of the Fund

KMGF 8% of the NAV per Unit of the Fund 8% of the NAV per Unit of the Fund

KDF 8% of the NAV per Unit of the Fund 8% of the NAV per Unit of the Fund

KSBF 8% of the NAV per Unit of the Fund 8% of the NAV per Unit of the Fund

KIPF 8% of the NAV per Unit of the Fund 8% of the NAV per Unit of the Fund

KBIF 8% of the NAV per Unit of the Fund 8% of the NAV per Unit of the Fund


207

Fund Name Maximum Annual Management Fee Maximum Trustee Fee

RM9,000 per annum

KEIF 3.0% of the NAV of the Fund 0.07% of the NAV of the Fund per annum, subject to a minimum of

RM9,000 per annum

KMGF 3.0% of the NAV of the Fund 0.07% of the NAV of the Fund per annum, subject to a minimum of

RM9,000 per annum

KDF 3.0% of the NAV of the Fund 0.07% of the NAV of the Fund per annum, subject to a minimum of

RM9,000 per annum

KSBF 3.0% of the NAV of the Fund 0.07% of the NAV of the Fund per annum, subject to a minimum of

RM9,000 per annum

KIPF 3.0% of the NAV of the Fund 0.07% of the NAV of the Fund per annum, subject to a minimum of

RM9,000 per annum

KBIF 3.0% of the NAV of the Fund 0.07% of the NAV of the Fund per annum, subject to a minimum of

RM9,000 per annum


iii) Procedures to be taken to increase the Direct Charges and Indirect Fees from the current amount stipulated in the Master Prospectus

Sales Charge

The Manager may not charge a sales charge at a rate higher than that disclosed in a prospectus unless: (a) the Manager has notified the Trustee in writing of the higher rate and the date on which such

higher rate is to become effective; (b) a supplemental prospectus stating the higher rate is issued thereafter; and (c) such time as may be prescribed by any relevant law shall have elapsed since the supplemental

prospectus is issued.

Repurchase Charge

The Manager may not charge a repurchase charge at a rate higher than that disclosed in a prospectus unless: (a) the Manager has notified the Trustee in writing of the higher rate and the date on which such

higher rate is to become effective; (b) a supplemental prospectus stating the higher rate is issued thereafter; and (c) such time as may be prescribed by any relevant law shall have elapsed since the supplemental


Annual Management Fee

The Manager may not charge an annual management fee at a rate higher than that disclosed in a prospectus unless: (a) the Manager has come to an agreement with the Trustee on the higher rate; (b) the Manager has notified the Unit Holders of the higher rate and the date on which such higher

rate is to become effective; (c) a supplemental prospectus stating the higher rate is issued thereafter; and (d) such time as may be prescribed by any relevant law shall have elapsed since the supplemental



208

Annual Trustee Fee

The Trustee may not charge an annual trustee fee at a rate higher than that disclosed in a prospectus unless: (a) the Manager has come to an agreement with the Trustee on the higher rate; (b) the Manager has notified the Unit Holders of the higher rate and the date on which such higher

rate is to become effective; (c) a supplemental prospectus stating the higher rate is issued thereafter; and (d) such time as may be prescribed by any relevant law shall have elapsed since the supplemental

prospectus is issued. iv) Procedures to be taken to increase the Direct Charges and Indirect Fees from the Maximum

Rate provided in the Deed

The maximum sales charge, repurchase charge, annual management fee or annual trustee fee set out in the Deed can only be increased if a Unit Holders' meeting has been held in accordance with the Deed. Thereafter, a supplemental deed proposing a modification to the Deed to increase the aforesaid maximum charges and fees is required to be submitted for registration with the SC accompanied by a resolution of not less than two-thirds (2/3) of all Unit Holders present and voting at the Unit Holders' meeting sanctioning the proposed modification to the Deed.

f) Circumstances that may lead towards the Retirement, Removal or Replacement of the Manager

Subject to the approval of the relevant authorities, the Manager has the power to retire in favour of some other corporation and as necessary under any relevant law upon giving to the Trustee three (3) months' notice in writing of the Manager’s desire so to do, or such lesser time as the Manager and the Trustee may agree upon, and subject to the fulfilment of the following conditions:

the retiring Manager shall appoint such corporation by writing under its seal as the management company of the Fund in its stead and assign and transfer to such corporation all its rights and duties as management company of the Fund;

such corporation shall enter into such deed or deeds as the Trustee may consider to be necessary or desirable to secure the due performance of its duties as management company for the Fund;

upon the payment to the Trustee of all sums due from the retiring Manager to the Trustee at the date of such retirement, the retiring Manager shall be absolved and released from all further obligations hereunder but without prejudice to the rights of the Trustee or any Unit Holder or other person in respect of any act or omission on the retiring Manager’s part prior to such retirement and the new management company may and shall thereafter exercise all the powers and enjoy all the rights and shall be subject to all the duties and obligations as fully as though such new management company had been originally a party to the Deed.

g) Powers of the Manager to Remove the Trustee

The Manager is obliged to give the Unit Holders notice in writing to consider the removal of the Trustee if the Trustee fails or neglects to carry out its duties as stipulated in the Deed and under the Act. The Manager shall take all reasonable steps to replace the Trustee as soon as practicable after becoming aware that:

the Trustee has ceased to exist;

the Trustee has not been validly appointed;

the Trustee is not eligible to be appointed or act as a trustee under any relevant law;

the Trustee has failed or refused to act as Trustee in accordance with the provisions or covenants of the Deed or any relevant law;

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,

a petition is presented for the winding up of the Trustee (other than for the purpose of and followed by a reconstruction, unless during or following such reconstruction the Trustee becomes or is declared to be insolvent); or

the Trustee is under investigation for conduct that contravenes the Trust Companies Act 1949, the Trustee Act 1949, the Companies Act 1965 or any relevant law.

The Trustee may be removed and another trustee may be appointed by special resolution of the Unit Holders at a duly convened meeting of which notice has been given to the Unit Holders in accordance with the Deed.


209

h) Retirement or Removal or Replacement of the Trustee

Provided always that the Manager has in place a corporation approved by the relevant authorities to act as the trustee of the Fund, the Trustee may retire upon the expiration of three (3) months' (or such other period as the Manager and the Trustee may agree upon), notice in writing to the Manager of its desire so to do.

The Trustee may be removed and another trustee may be appointed by way of a special resolution of the Unit Holders at a Unit Holders’ meeting convened in accordance with the Deed or as stipulated under the Act.

i) Power of Trustee to Remove or Replace the Manager

The Manager may be removed by the Trustee on the following grounds:

if the Manager has failed or neglected to carry out its duties to the satisfaction of the Trustee and the Trustee considers that it would be in the Unit Holders’ interest to do so after the Trustee has given notice to it of that opinion and the reasons for that opinion, and has considered any representations made by the Manager in respect of that opinion, and after consultation with the relevant authorities and with the approval of the Unit Holders by way of a special resolution;

unless expressly directed otherwise by the relevant authorities, if the Manager is in breach of any of its obligations or duties under the Deed or the relevant laws, or has ceased to be eligible to be a management company under the relevant laws; or

the Manager has gone into liquidation, except for the purpose of amalgamation or reconstruction or some similar purpose, or has had a receiver appointed or has ceased to carry on business.

If any of the events set out above occurs, the Manager shall upon receipt of a written notice from the Trustee cease to be the management company of the Fund by the mere fact that the Manager has received the notice. The Trustee shall, at the same time, by writing appoint some other corporation already approved by the relevant authorities to be the management company of the Fund; such corporation shall have entered into such deed or deeds as the Trustee may consider to be necessary or desirable to secure the due performance of its duties as management company for the Fund.

j) Permitted Expenses Payable Out of the Fund

Only the expenses (or part thereof) which are directly related and necessary to the business of the Fund may be charged to the Fund. These would include (but are not limited to) the following:

(a) commissions/fees paid to brokers in effecting dealings in the investments of the Fund, shown on

the contract notes or confirmation notes; (b) taxes and other duties charged on the Fund by the government and/or other authorities; (c) costs, fees and expenses properly incurred by the auditor appointed for the Fund; (d) costs, fees and expenses incurred for the valuation of any investment of the Fund by independent

valuers for the benefit of the Fund; (e) costs, fees and expenses incurred for any modification of the Deed save where such modification

is for the benefit of the Manager and/or the Trustee; (f) costs, fees and expenses incurred for any meeting of the Unit Holders save where such meeting

is convened for the benefit of the Manager and/or the Trustee; (g) costs, commissions, fees and expenses of the sale, purchase, insurance/takaful and any other

dealing of any asset of the Fund; (h) costs, fees and expenses incurred in engaging any specialist approved by the Trustee for

investigating or evaluating any proposed investment of the Fund; (i) costs, fees and expenses incurred in engaging any valuer, adviser or contractor for the benefit of

the Fund; (j) costs, fees and expenses incurred in the preparation and audit of the taxation, returns and

accounts of the Fund; (k) costs, fees and expenses incurred in the termination of the Fund or the removal of the Trustee or

the Manager and the appointment of a new trustee or management company; (l) costs, fees and expenses incurred in relation to any arbitration or other proceedings concerning

the Fund or any asset of the Fund, including proceedings against the Trustee or the Manager by the other for the benefit of the Fund (save to the extent that legal costs incurred for the defence of either of them are not ordered by the court to be reimbursed by the Fund);

(m) remuneration and out of pocket expenses of the independent members of the investment committee of the Fund, unless the Manager decides otherwise;

(n) costs, fees and expenses deemed by the Manager to have been incurred in connection with any change or the need to comply with any change or introduction of any law, regulation or


210

requirement (whether or not having the force of law) of any governmental or regulatory authority; and

(o) (where the custodial function is delegated by the Trustee) charges and fees paid to foreign custodians in respect of any foreign investments of the Fund.



211

12. MANAGEMENT AND ADMINISTRATION OF THE FUNDS Name and Office

The Manager of the Funds is Kenanga Investors Berhad (“KIB”), which has its principal place of business at Suite 12.02, 12th Floor, Kenanga International, Jalan Sultan Ismail, 50250 Kuala Lumpur, Malaysia. Background Information

The Manager, was incorporated as a public limited company on 2 August 1995 under the Companies Act 1965 with an authorised share capital of RM25,000,000.00 comprising 15,000,000 ordinary shares of RM1.00 each and 10,000,000 preference shares of RM1.00 each of which 13,465,300 ordinary shares and 5,000,000 preference shares are issued and fully paid-up. KIB is 100% owned by Kenanga Investment Bank Berhad which is a wholly-owned subsidiary of K & N Kenanga Holdings Berhad.

The Manager is licensed and authorised to conduct business in distributing unit trust funds and fund management on behalf of corporate, institutional and individual clients under the Act. The Manager established its maiden fund, the Kenanga Premier Fund, on 26 November 1996 and has since then been managing an array of unit trust funds and private mandates. As at 31 March 2015, the Manager manages 25 unit trust funds, 1 private retirement scheme (consisting of 3 core funds and 1 non-core fund), 13 wholesale funds and other funds from government agencies, pension funds, insurance, corporate and individual clients with a total fund size of more than RM5 billion. The Manager has the services of 95 experienced personnel (83 executives and 12 non-executives). Financial Highlights of the Manager

The audited financial results of KIB for the financial years ended 31 December 2012 to 31 December 2014 are summarized below:

Year ended 31 Dec 2014

RM’000


RM’000


RM’000

Paid-up capital 18,465 18,465 6,765

Shareholders’ funds 38,004 35,583 11,036

Revenue 55,608 35,551 12,178

Profit/ (loss) before taxation 13,839 14,138 (1,914)

Profit/(loss) after taxation 9,671 12,847 (1,741)

Functions of the Board of Directors

The functions of the board of directors are to elaborate, decide, endorse or resolve all matters pertaining to the Manager and the Funds at the board meetings that are held formally four times yearly or as circumstances require. The Board of Directors

Datuk Syed Ahmad Alwee Alsree (Chairman) Date of Appointment: 11 October 2006

Datuk Syed Ahmad Alwee Alsree was appointed Chairman of KIB on 1 January 2008 after having been appointed to the Board in October 2006. He was appointed as a non-executive director of K&N Kenanga Holdings Berhad on 28 August 2009 and had, on 26 July 2011, re-designated as Deputy Chairman. Datuk Syed Ahmad Alwee Alsree is also the Group Executive Director of Cahya Mata Sarawak Berhad (CMSB). He had earlier joined CMS in February 2004 as Group General Manager – Human Resources where he was responsible for the smooth operations and integration of the various human resource departments within CMS Group. He was appointed as Deputy Group Managing Director of CMSB in September 2006 and subsequently re-designated as Group Executive Director in August 2008. Datuk Syed Ahmad graduated with a Bachelor of Law (LL.B.) from the National University of Singapore, and practiced law in Singapore for over ten (10) years prior to joining CMS Group. Apart from K & N Kenanga Holdings Berhad and CMSB, Datuk Syed Ahmad is a director of KKB Engineering Berhad, Kenanga Investment Bank Berhad and SIG Gases Berhad. He is the Chairman of Samalaju Aluminium Industries Sdn Bhd (formerly known as Similajau Aluminium Industries Sdn Bhd) and a director of several CMS subsidiaries in financial services, property development and education.


212

Syed Zafilen Syed Alwee (Independent Director) Date of Appointment: 12 May 2008 Syed Zafilen Syed Alwee was appointed as the director of KIB on 12 May 2008. He has spent his career in

managing various sectors of operations of companies such as sales, marketing, technical, management, finance in local listed companies as well as multinational including Patimas, Lityan, Cahya Mata Sarawak, Lucent Technologies, Motorola, Mobil and others as well as being ownership of two other companies. Peter John Rayner (Independent Director) Date of Appointment: 11 November 2010 Peter John Rayner was appointed a director (and investment committee member) of KIB on 11 November 2010.

He has over thirty (30) years successful experience in building & leading businesses in the fields of Chartered Accounting, Stock Broking, Private Equity and Asset Management. He has held many senior positions including as chief executive officer of both, Allianz Global Investors and Saltbush Funds Management in Australia, executive director of private equity firm Audant Capital, Head of Institutional Investment at Perpetual Investments, National Chief Financial Officer of a major Australian hospital group and is a past trustee of the Rookwood General Cemeteries Trust in Sydney. He is currently Head of Business Advisory and Valuation at Valuator in Sydney, and a director of two Australian family companies. He holds a business degree (majoring in Accounting & Finance) from Charles Sturt University in Australia, is a Certified Practising Accountant (CPA), and a member of The Australian Institute of Company Directors. Imran Devindran bin Abdullah (Independent Director) Date of Appointment: 1 June 2015

Imran Devindran was appointed as the director of KIB on 1 June 2015. He is a partner of Imran Shahareen &

Co, advocates and solicitors in Batu Pahat, Johor, established in 2000 in partnership with his wife. He has accumulated over 25 years’ experience in criminal and civil litgation, with a portfolio that includes expertise in insurance, civil litigation and banking from his tenure as a legal assistant with some of the most established firms in Kuala Lumpur. Mr. Imran Devindran holds an Honours Bachelor of Law (1998) from the University of Buckingham, England and a Certificate of Legal Practice from the University of Malaya. He acquired his formative education in Malaysia, before progressing with his secondary schooling in Singapore and acquiring his A-Levels at Raffles Junior College, Singapore. He was admitted to the Malaysian Bar as an advocate and solicitor in August 1990 after successfully completing his chambering with M/S Rashid & Lee in Kuala Lumpur. Mr. Imran Devindran has represented major corporations such as Pan Global Insurance Berhad, Royal Insurance (M) Berhad, Malayan British Assurance, United Oriental Assurance Berhad (now known as Tune Insurance Berhad), Nusantara Worldwide Insurance (M) Sdn Bhd, Progressive Insurance Sdn Bhd and People’s Insurance Sdn Bhd in settlement negotiation, claims consultancy and developing strategies for litigation. He was also active in the North Johor Affairs Committee, from 2003 until 2008. In that capacity, he brought his superb communication skills and vigilant analytical approach to execute his responsibilities mediating and resolving complaints received by the Johor Bar, overseeing the welfare of lawyers and nurturing closer relations between the lawyers and the North Johor judiciary by organizing social interaction activities. When he’s not running his successful law firm, he keeps his mind and body active through games and sports, mainly badminton, football and improving his golfing skills. Dato’ Bruce Kho Yaw Huat Date of Appointment: 29 June 2010 Dato’ Bruce Kho Yaw Huat was appointed as the director of KIB on 29 June 2010. Dato’ Bruce has significant

experience in building and leading financial management firms. His experience spans thirty-five (35) years within the fields of finance and management, twenty four (24) of which were as the chief executive officer, and later Chairman, of the Allianz Group’s Asian asset management business, a market leader in the provision of asset management services.


213

Ismitz Matthew De Alwis Executive Director / Chief Executive Officer Date of Appointment: 25 February 2015 Ismitz Matthew De Alwis was appointed as the Chief Executive Officer for Kenanga Investors Berhad (KIB) in

February 2015. He is responsible for the overall asset and investment management business of KIB and its subsidiaries. He joined KIB in June 2013 as Deputy Chief Executive following the acquisition of ING Funds Berhad (“ING Funds”) by KIB. He was responsible for the company's retail business, finance, strategic business planning, risk management and governance, business development, operations and IT functions. He was with ING Funds since 2003 and was part of the pioneer team who was responsible for the exponential growth of ING Funds in Malaysia. He was the Executive Director and country head for ING Funds. Before assuming the strategic and executive oversight of ING Funds; he was responsible for nationwide distribution, product management and business development for retail, corporate and institutional markets. Matthew started his career as an Investment Analyst with a regional research & advisory firm, where he obtains vast regional exposure in Hong Kong, Philippines, Dubai and Singapore. He was responsible for research, marketing, distribution and product development. Upon his return to Malaysia, he joined a local established financial institution and investment management company before joining ING Funds. He brings with him 21 years of experience, multiple expertise and several leadership roles in the fields of financial and investment management. Matthew has attended the Advanced Business Management Program (ABMP) by International Institute for Management Development (IMD), Lausanne, Switzerland and holds a MBA from Southern Cross University where he graduated with distinction. In addition, he has a Bachelor Degree (H) in Business Administration from RMIT and holds two other professional qualifications from the Chartered Institute of Marketing UK (CIM UK), and is a Certified Financial Planner (CFP). Matthew also holds a Capital Markets Services Representative’s Licence (CMSRL) from the Securities Commission for fund management and investment advice. The Investment Committee’s roles and responsibilities include the following:

(a) Selecting appropriate strategies to achieve the proper performance of the Fund in accordance with the

fund management policies; (b) Ensuring that the strategies selected are properly and efficiently implemented by the Manager; and (c) Actively monitor, measure and evaluate the fund management performance of the Manager. The investment committee meets four times yearly or as circumstances require. The members of investment committee for the Fund consist of:

Dato’ Bruce Kho Yaw Huat (Chairman)

Syed Zafilen Syed Alwee (Independent Member)

Peter John Rayner (Independent Member)

Ismitz Matthew De Alwis * please refer to “”The Board of Director” section for details of their profiles. Functions of the Manager

KIB is responsible for the day-to-day management, marketing and administration of the Fund, where its key functions include:

a) Endeavouring that the Fund is managed in a sound and professional manner in accordance with its investment objectives, the provisions of this Master Prospectus and the Deed;

b) Endeavouring that the Fund is properly administered and to arrange for sale and redemption of Units of the Fund;

c) Issuing the Fund’s interim and annual reports to Unit Holders; d) Keeping proper records of the Fund; and e) Keeping Unit Holders informed on material matters relating to the Fund.


214

The Management Team Ismitz Matthew De Alwis Executive Director / Chief Executive Officer Ismitz Matthew De Alwis’s profile is as set out under the board of directors section.

Lee Sook Yee Chief Investment Officer Lee Sook Yee’s profile is as set out under the investment team section. Andrew Chan Yee Kok Chief Financial Officer

Mr Chan joined the KIB in 2013 to head the Finance & Investment Operations team. Prior to this, he was with ING Funds Berhad (“ING Funds”). He has been with ING Funds since the company’s inception and is one of the pioneers during the company’s green field set-up. Mr Chan has more than 20 years of experience in the business management, finance and accounting field. He started his accounting career in Australia. Upon his return, he joined a public-listed company as a senior accountant. His last stint prior to joining ING Funds was with an established unit trust management company where he was responsible for all financial reporting and management.

Mr Chan is a CPA, Australia and holds a Bachelor of Economics from La Trobe University, Melbourne, Australia. Mariam Veronica Abu Bakkar Seddek Senior Vice President, Institutional Business Mariam Veronica joined KIB in July 2012 and assumed the role of the Senior Vice President, Institutional

Business in March 2014 overseeing the institutional and corporate businesses of KIB. Mariam brings with her over 15 years of extensive experience in the capital market industry specialising in the areas of asset management, unit trust and audit. She was previously the Head of Compliance in one of the leading asset management companies in Malaysia. She had also gained numerous capital market experience and knowledge through her 8.5 years stint with the Securities Commission Malaysia. Prior to starting her career in Malaysia, Mariam had a one year working experience in the education sector in the United Kingdom. Prior to that she did part-time marketing for a shipping company in the United Kingdom. She was also selected to be the Cardiff University representative to Malaysia to promote Cardiff University as an education destination. Mariam is currently a holder of the Capital Market Services Representative License. She graduated with a Bachelor of Science in Accounting from University of Wales Cardiff, United Kingdom in 1998. Dr. Sahar Effendi bin Hj Daud Head, Compliance

Dr. Sahar joined KIB on 3 November 2014 as the Head of Compliance. He started his career in 1997 with an

international affiliated accounting firm before joining the Securities Commission in 2001. Whilst with the SC, he was attached to the Trust and Investment Management Department for about 2 years prior to joining the Investigation Department until his departure from the SC in October 2014. During his tenure with the Investigation Department, he was exposed to numerous high profile cases in various areas involving insider trading, market manipulation, illegal investment schemes, corporate fraud and forensic accounting as well as money laundering related offences. Dr. Sahar, a Chartered Accountant (Malaysia), holds a Bachelor of Accountancy (Hons) from Universiti Putra Malaysia, MBA (Management and Finance) and Doctor of Business Administration (Accounting: Financial Disclosure, Corporate Governance and Performance Measurement); both from Universiti Utara Malaysia. Dr. Sahar is also a member of the Malaysian Institute of Accountants (MIA), Chartered Tax Institute of Malaysia (CTIM), Association of Certified Fraud Examiner (ACFE) as well as the Certified Financial Investigator Alumni (CFIA). Dr Sahar is the designated person responsible for compliance matters for the Fund.


215

The Investment Team

The designated fund managers for the respective Funds are as follows: (a) KGF, KBF, KDF, KMGF and KBCF – Lee Sook Yee; (b) KAPTRF – Lee Sook Yee and Yap Eng Li; (c) KPF and KGOF – Sean Yap; (d) KBNF, KMMF, KCPF and KIPF – Choy Wai Kin; and (e) KMIF – Christopher Kok Keng Fai. As the Manager has delegated the fund management function to Kenanga Islamic Investors Berhad (KIIB), the designated fund managers for the aforesaid Funds are as follows: (a) KSGF, KIF, KIBF, KSGOF, KEIF and KSBF – Chung Yee Wah (KIIB); and (b) KIMMF, KIECF and KBIF – Mohd Ezani Bin Abu Yazid (KIIB). The particulars of the Investment Team are as follow: Lee Sook Yee Chief Investment Officer

Lee Sook Yee joined the Manager as the Chief Investment Officer (“CIO”) in March 2013, bringing with her more than thirteen (13) years of experience in local and regional equities investment. Prior to this, Sook Yee was Head of Equities at Meridian Asset Management (“Meridian”), where she led an experienced team of fund managers/analysts in managing equities portfolios of more than RM1 billion in assets under management. At Meridian, she managed various local and regional funds. Before joining Meridian, Sook Yee was Vice President/Senior Portfolio Manager at Credit-Suisse Asset Management in Singapore where she co-managed mutual funds focusing on emerging Asian markets. She was also Associate Director/ Portfolio Manager with UOB-OSK Asset Management where she managed various local unit trust funds. Sook Yee graduated with a Bachelor of Science (First Class Honours) in Economics from the London School of Economics, United Kingdom (UK), and later obtained her Master of Philosophy (MPhil) in Economics from the University of Cambridge, UK. Choy Wai Kin Head, Fixed Income

Choy Wai Kin joined Kenanga Investors Berhad in August 2014 as the Head of Fixed Income. He has more

than 12 years’ experience in the financial markets with an in-depth understanding of central banking, monetary and financial stability policies. He has hands-on experience in portfolio management and proprietary trading across various asset classes – bonds, bond futures, foreign exchange (FX), equities, equity index futures and commodity futures. He had managed Bank Negara Malaysia’s foreign reserves portfolio, in particular the United States dollar and Canadian dollar fixed-income portfolios, as well as the FX composition. He also managed the Reserve Bank of New Zealand’s (RBNZ) foreign reserves portfolio, and assisted the RBNZ in conducting New Zealand dollar FX interventions. He was previously an Associate Director in the Equity & Commodity Derivatives team at Maybank Investment Bank Berhad and he also held several other posts whilst working in New Zealand, which encompasses Portfolio Analyst, Senior Financial Markets Analyst and Policy Analyst. He also holds a Capital Markets Services Representative’s Licence (CMSRL) from the Securities Commission. Nik Hazim Nik Mohamed Senior Vice President, Investment

Nik Hazim Nik Mohamed joined the Manager in April 2009 as a fund manager. Prior to this, he was with

Permodalan Nasional Berhad (PNB) having almost fourteen (14) years experience in the company. During his stint in PNB, he had started out managing international funds for proprietary accounts and later on public funds in Singapore. He also has wide experience in managing local unit trust fund for PNB and had exposures doing financial analysis and marketing of unit trust funds. He graduated with an Honours Degree from Universiti Utara Malaysia in Bachelor in Business Administration majoring in Finance. Yap Eng Li Senior Vice President, Investment Yap Eng Li joined Kenanga Investors Berhad in October 2014, bringing with her more than seven years of

experience in regional equities investment. Prior to this, she was with CIMB-Principal Asset Management Berhad managing regional portfolio. Before joining CIMB-Principal Asset Management Berhad, she was working in


216

London for seven years, of which experience including being a senior analyst for a long short equity fund in London, focusing on pan-European markets. Eng Li graduated with a BSc. First Class Honours in Economics from the London School of Economics, United Kingdom. She is a qualified Chartered Accountant (ICAEW) and a Chartered Financial Analyst (CFA) charter holder. Christopher Kok Keng Fai Vice President, Investment

Christopher Kok Keng Fai joined the Manager in January 2014 and his role includes portfolio management and

research. Prior to this, he was with Meridian Asset Management, where he was involved in management and research for both local and Asia-Pacific portfolios. He began his career with AmInvestment Bank in the Equity Capital Markets department, where he worked on numerous deals including initial public offerings, follow-on equity offerings, secondary placements and underwriting risk assessments. He graduated from Monash University, Australia with a Bachelor of Commerce (Accounting & Finance), is a Chartered Financial Analyst (CFA) charterholder and also a holder of a Capital Markets Services Representative’s Licence. Sean Yap Shon Leong Vice President, Investment

Sean Yap has 8 years of experience and exposure in both Malaysia and regional capital markets as a portfolio

manager as well as a sell-side analyst. Prior to joining KIB, Sean was a portfolio manager in ECM Libra managing unit trusts and private mandates. His past working experience includes stints with Maybank Investment, AmInvestment, UOB-KayHian (M) and Meridian Asset Management. Sean’s key responsibilities are mainly in portfolio management as well as security analyses. He has a BSc in Ecomonics from University of London and is a Capital Markets Services Representative’s Licence holder. Material Litigation

As at 31 March 2015, save as disclosed below, the Manager is not engaged in any litigation or arbitration proceedings, either as plaintiff or defendant which has a material effect on the financial position of the Manager, and the board of directors is not aware of any proceedings pending or threatened, or of any fact likely to give rise to any such proceedings which might materially and adversely affect the position or business of the Manager. An ex-employee of the Manager who was dismissed by the Manager has filed an action under section 20(3) of the Industrial Relations Act 1967 to challenge his dismissal. The ex-employee contends that his dismissal was without just cause or excuse and is seeking to be reinstated to his former position without any loss of salary and benefits. The matter came up for further submissions on 31 January 2011 before the Industrial Court in Kuching. The Learned Chairman then adjourned the matter and informed us that he will be handing down his written decision on the above matter in due course. As at 31 March 2015 the Learned Chairman has yet to deliver his decision on the case. The directors are of the opinion that the claim has no bearing on the performance of the Funds and that it has no adverse effect on the capability of the Manager in discharging its duties and responsibilities to the Unit Holders of the Funds.


217

THE EXTERNAL FUND MANAGER (Only for the KIF, KSGF, KIBF, KIECF, KIMMF, KSGOF, KEIF, KSBF and KBIF)

Kenanga Islamic Investors Berhad (KIIB) Background Information

Kenanga Islamic Investors Berhad (“KIIB”) was incorporated as a public company in 1997 under the Companies Act 1965 as Kenanga Unit Trust Berhad (“KUTB”) to solely conduct a unit trust business in Malaysia. In 2009, pursuant to the rationalization and re-organization of the asset and unit trust management businesses of the K & N Kenanga Holdings Berhad group of companies (“Kenanga Group”), the business and assets of Kenanga Asset Management Sdn Bhd (“KAM”) a fund management company within the Kenanga Group was transferred to KUTB. KUTB subsequently applied for and was licensed as a fund manager under the Act. KUTB was renamed as Kenanga Fund Management Berhad (KFMB) following the completion of the rationalization and re-organization exercise. In November 2010, KFMB transferred its business and employees to Kenanga Investors Berhad (“KIB”) and subsequently changed its name to Kenanga Islamic Investors Berhad in August 2011. Pursuant to the Kenanga Group business plans for KIIB to become a fully operational Islamic fund management business, KIIB applied for and received its Islamic fund management licence from the Securities Commission in April 2012. KIIB is the Kenanga Group’s asset management arm focused on exclusively providing Shariah-compliant investment products to both domestic and regional markets. Effective 1 April 2013, KIIB is a wholly-owned subsidiary of KIB. As at 31 March 2015, the total asset under management of KIIB stands at approximately RM1.46 billion. Below are the profiles of the key personnel of the KIIB.

Shahariah Binti Shaharudin Chief Executive Officer/ Executive Director

Shahariah binti Shaharudin joined KIIB as the chief executive officer in March 2014. She was in KIB from April

2011 as the Head of Institutional Business. Shahariah brings with her twenty (20) years of experience in the financial services industry. She began her career in a local bank and has extensive experience in both retail and corporate banking. Subsequently she joined a stock broking company as Head of Dealing managing institutional trade. In 2006, she joined a local fund management company under Strategic Business and Market Development Division where her core responsibility is sourcing business and servicing both retail and wholesale clients ranging from unit trust, corporate and government agencies to insurance companies. She graduated with Bachelor of Arts Degree in Business Studies from Knox College, Illinois and Master of Arts in Economics from University of Illinois, Springfield, USA. She holds the Capital Markets Services Representative’s Licence. Chung Yee Wah Chief Investment Officer Yee Wah joined KIIB as the chief investment officer in February 2012. He brings with him more than 18 years of

experience in the investment field, managing domestic and regional equity portfolios. Yee Wah started off as an investment analyst in 1993 and had worked in UMBC Securities Sdn Bhd and James Capel (Malaysia) Sdn Bhd (later known as HSBC Securities (Malaysia) Sdn Bhd) before he joined Abu Dhabi Investment Authority as a fund manager in 1998. He returned to Malaysia in 2007 and joined AmInvestment Bank Berhad as an Associate Director for institutional sales (equity). Yee Wah then moved on to UOB-OSK Asset Management Sdn Bhd as an Associate Director to manage institutional funds before he joined KIIB. Yee Wah earned a BBA from the National University of Malaysia with a major in finance. Mohd Ezani Bin Abu Yazid Senior Portfolio Manager

Mohd Ezani bin Abu Yazid joined the Manager in March 2011 and was transferred to KIIB in July 2012. He has over eighteen (18) years experience in the disciplines of treasury & money market management. In 1993, he began his career in the Treasury Department of Bank Utama (M) Berhad and in 1996, joined Bolton Finance Berhad (later known as Alliance Finance Berhad). He moved into the funds management industry in 2001 when he joined BHLB Asset Management Sdn Bhd (BAM). BAM later merged with SBB Asset Management (SBBAM) (later known as SBB Investment Management Sdn Bhd) and Ezani retained his position until he joined RHB Investment Management Sdn Bhd (RHBIM) in May 2006. During his tenure in RHBIM he managed wholesale


218

and retail cash funds. His other wide experience includes central dealing of equity, fixed income and foreign exchange. He has a Diploma in AgriBusiness from University Putra Malaysia. Ezani is a holder of the Capital Markets Services Representatives’ Licence.

Roles and Duties of the External Investment Manager or KIIB

The Manager has delegated the investment management functions for the Funds to KIIB, an Islamic fund management company. KIIB shall manage, realize, invest, reinvest or deal with the Funds according to the respective objectives of the Funds and requirements of the Shariah. KIIB will at all times act with bona fides and in the best interests and for the benefit of the Funds and shall ensure that all investment transactions will be effected in accordance with the respective objectives of the Funds and requirements of the Shariah.



219

13. TRUSTEES’ PROFILES Universal Trustee (Malaysia) Berhad (the Trustee for KIF and KBNF)

The Trustee’s role is mainly to exercise all due care and vigilance in carrying out its functions and duties and in watching over the interests of Unit Holders. Apart from being vested with the assets of the Fund, the Trustee is responsible for ensuring that the Manager performs its obligations in accordance with the Deed of Trust. Universal Trustee (Malaysia) Berhad is currently acting as Trustee for twenty seven (27) unit trust funds and has more than thirty (30) years experience in handling unit trust matters. The Trustee has the services of twenty seven (27) experienced personnel, seventeen (17) executives and ten (10) non-executives, to assist in carrying out its duties as a Trustee as at 31 March 2015. Corporate Information of the Trustee

Universal Trustee (Malaysia) Berhad (Company No. 17540-D)

1 Jalan Ampang, 3rd Floor 50450 Kuala Lumpur Tel: 03-2070 8050 Fax: 03-2031 8715, 2032 3194, 20701296 Date of Incorporation

5 March 1974 Board of Directors and Chief Executive Officer

Tan Sri Dato’ IR. Talha Bin Haji Mohamad Hashim Huang Chang Yi Emily Huang Ye (alternate to Huang Chang Yi) Wong Sai Fong Putri Noor Shariza Binti Noordin Omar (alternate to Wong Sai Fong) YM Tunku Mohamed Alauddin Tunku Naquiyuddin Abu Zaekry Akmi Karim (alternate to YM Tunku Mohamed Alauddin Tunku Naquiyuddin) Ong Tee Vann (Chief Executive Officer) Trustee’s Financial Highlights

The following is a summary of the past performance of the Trustee based on audited financial statements for the last 3 financial years ended 31 December:

Duties and Responsibilities of the Trustee

The Trustee acts as the custodian of the Fund and its role is to safeguard the assets of the Fund. The Trustee is governed by the Deed, the Act and the Guidelines. In performing these functions, the Trustee has to exercise due care, skill, diligence and vigilance in carrying out its duties and responsibilities, and also ensures that the Manager carries out its duties in accordance to the provisions of the Deed, the Act and the Guidelines. Trustee’s Statement of Responsibility

The Trustee is willing to continue its position as trustee of the Funds and all the obligations that come along with it under the Deed and all relevant written laws. Material Litigations

As at 31 March 2015, the Trustee is not engaged in any material litigation and arbitration, including those pending or threatened, and is not aware of any facts likely to give rise to any proceedings which might materially affect the business/financial position of the Trustee and any of its delegates.

2014 31 December

2013 31 December

2012 31 December

Paid-up capital (RM) 500,000 500,000 500,000

Shareholders’ fund (RM) 4,629,149 4,028,962 3,982,526

Turnover (RM) 3,465,128 3,175,275 3,096,471

Pretax profit (RM) 624,789 675,435 678,968

Profit after tax (RM) 423,789 421,436 534,436


220

CIMB Commerce Trustee Berhad (the Trustee for KPF, KGF, KBF, KMIF, KMMF, KCPF, KIECF, KBCF, KGOF, KSGOF, KEIF, KMGF, KDF, KSBF, KIPF and KBIF) Trustee’s Background and Experience

CIMB Commerce Trustee Berhad was incorporated on 25 August 1994 and having its registered office at Level 13, Menara CIMB, Jalan Stesen Sentral 2, Kuala Lumpur Sentral 50480, Kuala Lumpur, Malaysia. The Trustee is qualified to act as a trustee for collective investment schemes approved under the Capital Markets and Services Act 2007. It has an authorised capital of RM5,000,000 divided into 500,000 ordinary shares of RM10 each of which the total issued capital is RM3,500,000 divided into 350,000 ordinary shares of RM10 each, and the total paid up capital is RM1,750,000 divided into 350,000 ordinary shares of RM10 each and partly paid-up at RM5 each. As at 31 March 2015, CIMB Commerce Trustee Berhad acts as Trustee for one (1) real estate investment trust, sixty (60) unit trust funds, thirteen (13) wholesale funds and 1 private retirement scheme (consisting of four (4) funds) and has more than nineteen (19) years of experience as trustee to unit trust funds. CIMB Commerce Trustee Berhad is supported by twenty five (25) staff, which consists of twenty five (25) executives. In addition to overseeing these funds, CIMB Commerce Trustee Berhad also acts as trustee to private debt securities issues such as bonds and notes. Other than being the administrator of deceased’s estates, executor of wills, trustee for minors or incapacitated persons, CIMB Commerce Trustee Berhad also acts as trustee for public, charitable, staff retirement, and pension/ gratuity fund scheme, custodian trustee for associations, clubs and others. Financial Position

The following is a summary of the past performance of the Trustee based on audited accounts for the last 3 years:

Financial year ended

31 December 2014 RM’000



Paid-up capital 1,750 1,750 1,750


Turnover 9,872 8,502 7,917

Pre-tax profit 5,692 4,216 2,596

After tax profit 4,236 3,138 1,999

The Board of Directors

Name Directorship

Zahardin bin Omardin Independent Director and Chairman, Non-Executive

Mohamad Safri Bin Shahul Hamid Non-Independent Director, Non-Executive

Liew Pik Yoong Non-Independent Director, Executive

Key Management Personnel

Liew Pik Yoong (Head/Director, Group Trustee Services)

Ms Liew is responsible for the overall business direction and management of CIMB Trustee Services. In addition to holding the position as Head/Director of Group Trustee Services, she is also Head/Director of Securities Services in CIMB Group. She joined CIMB Group in 2011 and has over 26 years experience in the financial market and securities industry. Prior to CIMB Group, she held various positions as Head/Director of Investors & Intermediaries, Head of Securities Services, Vice President/Head of Department with local foreign banks mainly responsible for Custody Services, Nominees, Fund Services and Share Margin products. She was also previously the Chief Operating Officer with a local foreign trustee company. She has a degree from the Institute of Chartered Secretaries & Administrators (ICSA). Lee Kooi Yoke (Chief Operating Officer)

Ms Lee holds a Bachelor Degree in Administration (Finance) from Griffith University, Australia and she is a member of both the Certified Practising Accountants (CPA) Australia and the Malaysia Institute of Accountant and Financial Planning Association Malaysia. She has more than 22 years of working experience in the financial industry. Prior to her current appointment, she headed the operations of a unit trust management company


221

responsible for transfer agency, investment back-office, system and projects and retail and corporate agency operations. Also, prior to this position, she headed the investment operations of an established insurance company in Malaysia and Singapore. Trustee’s Statement of Responsibility

The Trustee has given its willingness to assume the position as Trustee of the Funds and all the obligations in accordance with the Deed, all relevant laws and rules of law. Duties and Responsibilities of the Trustee’s in relation to the Funds

The Trustee’s functions, duties and responsibilities are set out in the Deed. The general functions, duties and responsibilities of the Trustee include, but are not limited to, the following: a. Take into custody the investments of the Funds and hold the investments in trust for the Unit Holders. b. Ensure that the Manager operates and administers the Funds in accordance with the provisions of the Deed,

the Guidelines and acceptable business practice within the unit trust industry. c. As soon as practicable notify the SC of any irregularity or breach of the provisions of the Deed, the SC

Guidelines and any other matters which in the Trustee's opinions may indicate that the interests of Unit Holders are not served.

d. Exercise reasonable diligence in carrying out its functions and duties, actively monitoring the operation and management of the Funds by the Manager to safeguard the interests of Unit Holders.

e. Maintain, or cause the Manager to maintain, proper accounting records and other records as are necessary to enable a complete and accurate view of the Funds to be formed and to ensure that the Fund is operated and managed in accordance with the Deed of the Funds, Master Prospectus, the SC Guidelines and securities law.

f. Require that the accounts be audited at least annually. The Trustee has covenanted in the Deed that it will exercise all due diligence and vigilance in carrying out its functions and duties, and in safeguarding the rights and interests of Unit Holders. Trustee’s Declaration

The Trustee is independent of the Manager. The Trustee will carry out transactions on an arm’s length basis and on terms which are best available for the Fund, as well as act at all times in the best interest of the Fund’s Unit Holders. The Trustee also has adequate procedures and processes in place to prevent or control conflicts of interest. Material Litigations and Arbitration

There is no current material litigation and arbitration including those pending or threatened or any facts likely to give rise to any proceedings, which might materially affect the business/financial position of the Trustee and any of its delegates. Trustee’s Obligation

The Trustee's obligation in respect of monies paid by an investor for the application of units arises when the monies are received in the relevant account of the Trustee for the Funds and the Trustee's obligation is discharged once it has paid the redemption amount to the Manager. Trustee’s Delegate and Delegate’s Roles and Duties

CIMB Commerce Trustee Berhad has appointed CIMB Bank Berhad (CIMB) as the Custodian of the Fund's assets. CIMB custodial services comes under Securities Services (SS), a unit of Transaction Banking under the Wholesale Banking Division of CIMB Group. CIMB SS provides full fledged custodial services, typically clearing and custody services covering all types of investment assets and classes, to a cross section of investors and intermediaries client base, both locally and overseas. For the local Ringgit assets, the assets are held through its wholly owned nominee subsidiary "CIMB Group Nominees (Tempatan) Sdn Bhd". For foreign non-Ringgit assets, CIMB SS appoints global custodian as its agent bank to clear, settle and safekeep on its behalf and to its order. The appointed global custodians are Citibank N. A, Singapore and BNP Paribas Securities Services, Singapore.


222

All investments are automatically registered in the name of the Fund or to the order of the Fund. CIMB Bank Berhad acts only in accordance with instructions from the Trustee.



223

CIMB Islamic Trustee Berhad (the Trustee for KSGF, KIBF and KIMMF)

Trustee’s Background and Experience

CIMB Islamic Trustee Berhad was incorporated on 19 January 1988 and registered as a trust company under the Trust Companies Act, 1949 and having its registered office at Level 13, Menara CIMB, Jalan Stesen Sentral 2, Kuala Lumpur Sentral, 50470 Kuala Lumpur, Malaysia. The Trustee is qualified to act as a trustee for collective investment schemes approved under the Capital Markets and Services Act 2007. CIMB Islamic Trustee Berhad has an authorised capital of RM5,000,000 divided into 500,000 ordinary shares of RM10 each of which the total issued capital is RM2,000,000 divided into 200,000 ordinary shares of RM10 each, and the total paid up capital is RM1,000,000 divided into 200,000 ordinary shares of RM10 each and partly paid-up at RM5 each. As at 31 March 2015, CIMB Islamic Trustee Berhad acts as trustee to one (1) real estate investment trust funds, twenty four (24) unit trust funds, seventeen (17) wholesale funds and one (1) private retirement scheme (consisting of three (3) funds) and has more than twenty five (25) years of experience as trustee to unit trust funds. CIMB Islamic Trustee Berhad is supported by twenty (20) staff, constituting sixteen (16) executives and four (4) non-executives as at 31 March 2015. In addition to overseeing these funds, CIMB Islamic Trustee Berhad also acts as trustee to private debt securities issues such as sukuk, bonds and notes. Other than being the administrator of deceased’s estates, executor of wills, trustee for minors or incapacitated persons, CIMB Islamic Trustee also acts as trustee for public, charitable, staff retirement, and pension/ gratuity fund scheme, custodian trustee for associations, clubs and others. Financial Position


Financial year ended




Paid-up capital 1,000 1,000 1,000


Turnover* 3,403 2,788 4,000

Pre-tax profit 1,312 370 1,386

After tax profit 945 263 993

* Only Shariah-compliant income are recognised since the entity’s conversion to Islamic in 2012. The Board of Directors

The following table sets out information regarding the Board of Directors of the Trustee:

Name Directorship

Zahardin bin Omardin Independent Director and Chairman, Non-Executive

Mohamad Safri Bin Shahul Hamid Non-Independent Director, Non-Executive

Liew Pik Yoong Non-Independent Director, Executive

Key Management Personnel

Liew Pik Yoong (Head/Director, Group Trustee Services)

Ms Liew is responsible for the overall business direction and management of CIMB Trustee Services. In addition to holding the position as Head/Director of Group Trustee Services, she is also Head/Director of Securities Services in CIMB Group. She joined CIMB Group in 2011 and has over 26 years experience in the financial market and securities industry. Prior to CIMB Group, she held various positions as Head/Director of Investors & Intermediaries, Head of Securities Services, Vice President/Head of Department with local foreign banks mainly responsible for Custody Services, Nominees, Fund Services and Share Margin products. She was also previously the Chief Operating Officer with a local foreign trustee company. She has a degree from the Institute of Chartered Secretaries & Administrators (ICSA).


224

Lee Kooi Yoke (Chief Operating Officer)

Ms Lee holds a Bachelor Degree in Administration (Finance) from Griffith University, Australia and she is a member of both the Certified Practising Accountants (CPA) Australia and the Malaysia Institute of Accountant and Financial Planning Association Malaysia. She has more than 22 years of working experience in the financial industry. Prior to her current appointment, she headed the operations of a unit trust management company responsible for transfer agency, investment back-office, system and projects and retail and corporate agency operations. Also, prior to this position, she headed the investment operations of an established insurance company in Malaysia and Singapore. Trustee’s Statement of Responsibility

The Trustee has given its willingness to assume the position as Trustee of the Funds and all the obligations in accordance with the Deed, all relevant laws and rules of law. Duties and Responsibilities of the Trustee’s in relation to the Funds

The Trustee’s functions, duties and responsibilities are set out in the Deed. The general functions, duties and responsibilities of the Trustee include, but are not limited to, the following:

a. Take into custody the investments of the Funds and hold the investments in trust for the Unit Holders. b. Ensure that the Manager operates and administers the Funds in accordance with the provisions of the

Deed, the Guidelines and acceptable business practice within the unit trust industry. c. As soon as practicable notify the SC of any irregularity or breach of the provisions of the Deed, the SC

Guidelines and any other matters which in the Trustee's opinions may indicate that the interests of Unit Holders are not served.

d. Exercise reasonable diligence in carrying out its functions and duties, actively monitoring the operation and management of the Funds by the Manager to safeguard the interests of Unit Holders.

e. Maintain, or cause the Manager to maintain, proper accounting records and other records as are necessary to enable a complete and accurate view of the Funds to be formed and to ensure that the Fund is operated and managed in accordance with the Deed of the Funds, Master Prospectus, the SC Guidelines and securities law.

f. Require that the accounts be audited at least annually. The Trustee has covenanted in the Deed that it will exercise all due diligence and vigilance in carrying out its functions and duties, and in safeguarding the rights and interests of Unit Holders. Trustee’s Declaration

The Trustee is independent of the Manager. The Trustee will carry out transactions on an arm’s length basis and on terms which are best available for the Fund, as well as act at all times in the best interest of the Fund’s Unit Holders. The Trustee also has adequate procedures and processes in place to prevent or control conflicts of interest. Material Litigations and Arbitration

There is no current material litigation and arbitration including those pending or threatened or any facts likely to give rise to any proceedings, which might materially affect the business/financial position of the Trustee and any of its delegates. Trustee’s Obligation

The Trustee's obligation in respect of monies paid by an investor for the application of units arises when the monies are received in the relevant account of the Trustee for the Funds and the Trustee's obligation is discharged once it has paid the redemption amount to the Manager.

Trustee’s Delegate CIMB Islamic Trustee Berhad has appointed CIMB Islamic Bank Berhad (CIMB Islamic) as the Custodian of the Fund's assets. CIMB Islamic custodial services comes under Securities Services (SS), a unit of Transaction Banking under the Wholesale Banking Division of CIMB Group. CIMB Islamic SS provides full fledged custodial services, typically clearing and custody services covering all types of investment assets and classes, to a cross


225

section of investors and intermediaries client base, both locally and overseas. For the local Ringgit assets, the assets are held through its wholly owned nominee subsidiary "CIMB Islamic Nominees (Tempatan) Sdn Bhd". For foreign non-Ringgit assets, CIMB Islamic SS appoints global custodian as its agent bank to clear, settle and safekeep on its behalf and to its order. The appointed global custodians are Citibank N. A, Singapore and BNP Paribas Securities Services, Singapore. All investments are automatically registered in the name of the Fund or to the order of the Fund. CIMB Islamic Bank Berhad acts only in accordance with instructions from the Trustee.



226

RHB Trustees Berhad (the Trustee for KAPTRF)

Background Of The Trustee

RHB Trustees Berhad (“RHB Trustees Berhad”) was incorporated in Malaysia under the Companies Act, 1965 on 6 March 2002. It is registered as a trust company under the Trust Companies Act, 1949 and is also registered with the SC to conduct unit trust business. The principal activity of RHB Trustees Berhad is providing retail and corporate trustee services. RHB Trustees Berhad has been in the trustee business since 2002. The present authorised share capital of RHB Trustees Berhad is RM25,000,000 comprising 2,500,000 ordinary shares of RM10.00 each, of which 1,200,000 are currently issued and credited as partially paid-up of RM5.00 each in RHB Trustees Berhad. The shareholders are as follows: Shareholders %

RHB Capital Berhad 20 RHB Investment Bank Berhad 20 RHB Nominees (Tempatan) Sdn. Berhad 20 RHB Nominees (Asing) Sdn. Berhad 20 OSK Futures And Options Sdn. Berhad 20 Financial Position of the Trustee


Financial Year Ended 31 December

2014 (RM)

2013 (RM)

2012 (RM)

Paid-up capital 6,000,000 6,000,000 6,000,000 Shareholders’ funds 8,562,989 7,578,080 7,075,336 Turnover 8,047,494 7,629,601 7,566,249 Profit before tax 1,311,733 710,680 1,924,026 Profit after tax 984,909 502,744 1,417,905

Experience in Trustee Business

RHB Trustees Berhad undertakes all types of trustee business allowed under the Trust Companies Act, 1949, ranging from corporate trustee services to retail services. RHB Trustees Berhad offers corporate trustee services such as trustee for real estate investment trusts (REITs), unit trust funds, private retirement schemes and custodian services. Its retail services include estate planning services (will writing, custodian and executor/trustee services) and private trustee services (private purpose trust, investment trust, charitable trust, insurance trust, business succession trust, estate administration trust, custodian and stakeholder services). As of 31 March 2015, RHB Trustees Berhad is the trustee for ten (10) unit trust funds, twenty (20) wholesale funds and three (3) REITs. As of 31 March 2015, RHB Trustees Berhad’s staff strength comprises 36 executives. The Board of Directors

The following table sets out information regarding the Board of Directors of the Trustee:

Name Directorship

Foo San Kan Independent Non-Executive Director

Dato’ Nik Mohamed Din bin DatukNikYusoff Non-Independent Non-Executive Director (Chairman)

Datuk Haji Faisal @ Ibrahim bin Siraj Independent Non-Executive Director

Ong Seng Pheow Independent Non-Executive Director

Tony Chieng Siong Ung Executive Director


227

Key Personnel Tony Chieng Siong Ung, Executive Director

Mr Tony holds a Master of Business Administration specializing in finance from University of Southern Queensland and professional certification from The Institute of Chartered Secretaries & Administrators (ICSA). Prior to joining RHB Trustees Berhad, he is the Head of Operations with one of Malaysia’s leading financial institutions managing a team of 45 staff that covers trustee, custodian and fund accounting services with over 60 unit trust funds (UTF), 85 private debt securities (PDS) & real estate investment trusts (REITs) and over 3500 accounts under custodianship with Asset under Custody (AUC) worth of more than RM70 billion. He has more than 17 years experience in financial services industry encompassing hands on experience in day to day operations of trusteeship such as UTF, PDS, REITs, estate administrations, will and wasiat; custodian roles such as trade settlement and corporate action, fund accounting, asset management, stock broking and insurance. He is responsible for overall business direction and management of RHB Trustees Berhad, including but not limited to business development and day-to-day operations for UTF, REITS and PDS. Ngu Kee Keong, Head of Business Development

Mr. Ngu holds a Bachelor of Science (Computer Science) Degree from Campbell University, North Carolina, USA. He is a Chartered Financial Practitioner and Chartered Life Planner from Financial and Life Practitioners Council, NAMLIFA, and a Registered Financial Planner from Malaysia Financial Planning Council (MFPC). He is also a qualified Trainer for Malaysian Insurance Institute (MII) and MFPC. He also holds Professional Qualifications such as Fellow of Life Underwriters Training Council (MII-LUTCF& LUTCF-USA), Fellow of Life Management Institute (FLMI), Associate of Customer Service (ACS), Associate Of Agency Administration (AIAA)(LOMA-USA), Associate Of Insurance Regulatory Compliance (AIRC), Associate of Reinsurance Administration (ARA), Certificate In Underwriting, Professional Customer Service(PCS) and Associate Of Annuity Product Administration (AAPA) where he emerged as Top Scorer for Asia Pacific. He has more than 20 years experience in various areas such as sales and marketing, agency management, product development, sales force development, financial planning, sales motivation and design and conduct training for sales personnel. He has also been invited as a speaker for many talks and seminars on Financial Planning and Estate Planning. He oversees the business development and training portfolios of RHB Trustees Berhad. Cheah Kuan Yoon, Head of Operations

Mr Cheah holds a Bachelor of Arts majoring in Accountancy and Finance from University of Abertay Dundee, Scotland. Prior joining RHB Trustees Berhad, he was a functional consultant with OpenLink International Sdn Bhd. He was a manager in Operation Department, KAF Trustee Berhad for 4 years, where he specialised in fund accounting, administration and settlement operations of high net worth clients’ (institutional and individual) transactional records. He also involved in bond trustee activities including oversee and monitoring funds on designated accounts operations. Mr Cheah started his career as an executive in CIMB Investment Bank Berhad for 3 years. He was in Financial Accounting Unit where he had extensive experience in firming the foundation of fund management for fixed income services and implementation projects in system user testing. He currently oversees and manages all administration and operation functions of RHB Trustees Berhad. Ms. Lim San San, Section Head, Operations

Ms Lim San San is a Fellow Member of the Association of Chartered Certified Accountants (FCCA) and Chartered Accountant of MIA (Malaysia Institute of Accountants). She has over 14 years of experience in the unit trust and asset management industry. Prior joining RHB Trustees Berhad, she was the Head of the Unit Trust section of an established trustee company, where she oversaw the Company’s day to day operations of over 60 unit trust funds, specializing in trade settlement, money market placements, corporate actions, fund accounting and the compliance functions. She was also previously attached to a reputable asset management company, where she is responsible for fund accounting and other back office functions.


228

Her scope of work at RHB Trustees Berhad includes operation for unit trust funds (UTF) which include fund accounting services. Sazali Alias, Head of Internal Process and Management Mr. Sazali holds a Bachelor of Arts in Business Administration (Marketing) from Benedictine College, Kansas, USA, and Diploma in Business Studies from University MARA Institute of Technology (UiTM). He has more than 10 years experience in financial services industries encompassing hands on experience in day to day operations of nominees, trusteeship services such as unit trust funds, clubs, real estate investment trust and private debt securities. Prior to joining RHB Trustees Berhad, he was a Compliance Manager with AmTrustee Berhad (AmTB) and his main responsibility was then to set up and oversee the Compliance Unit (CU) so as to ensure that the company’s day to day operations and compliance monitoring (internal processes) are in order and in line with the company’s Standard Operational Procedures, Trust Deed, any other related guidelines, and rules & regulations. And prior to AmTB, he was an Assistant Vice President in ABB Trustee Berhad (ABBT) and last headed ABBT’s Finance & Operations Units. His scope of work at RHB Trustees includes ensuring that the Company’s day to day operations and business are in compliance with the relevant laws and guidelines and that the necessary reporting to the relevant authorities and enquiries are attended to. Anti Money Laundering Provisions

RHB Trustees Berhad adopts the Anti-Money Laundering and Counter Financing of Terrorism (“AML/CFT”) Program for Investment Banking Business (“the Program”) in dealing with the principles to combat money laundering and terrorism financing. The Program inter alia provides guidance to all employees of RHB Investment Banking Group (“RHB IB Group”) on the requirement of Know Your Client (“KYC”) / clients’ due diligence (“CDD”), whereby they are required to obtain satisfactory evidence to establish the identity and legal existence of any person applying to do business with any companies of RHB IB Group. The employees should not compromise any attempt to circumvent the CDD requirement. The policies and procedures in the Program serve to prevent RHB Trustees Berhad from being used as a conduit for money laundering and terrorism financing activities. This is through the prevention and detection of AML/CFT suspicious transaction and fraud, and reporting of such activities to the relevant regulatory bodies. Trustee’s Declaration

RHB Trustees Berhad is independent of the Manager. The Trustee will carry out transactions on an arm’s length basis and on terms which are best available to the Fund, as well as act at all times in the best interest of the Unit Holders. The Trustee also has adequate procedures and processes in place to prevent or control conflicts of interest. RHB Trustees Berhad’s Board of Directors declare that the requirements of the guidelines on allowing a person to be appointed or to act as trustee under subsection 290(1) of the Capital Markets and Services Act 2007 have been complied with at the point of application. The Trustee’s Delegate

RHB Trustees Berhad has appointed Deutsche Bank (Malaysia) Berhad (“DBMB”) as custodian of the quoted and unquoted investments of the Fund. DBMB is a wholly-owned subsidiary of the parent organization, Deutsche Bank Aktiengesellschaft (“DB”). DB established a presence in Kuala Lumpur, Malaysia in 1967 and DBMB was incorporated on the 22nd August 1994. DBMB offers its clients access to a growing domestic custody network that covers over 30 markets globally and a unique combination of local expertise backed by the resources of a leading global bank. With a worldwide team of custody experts, leading-edge technology and a track record of consistent product innovation, DBMB is committed to delivering exceptional and efficient domestic custody services to its clients. The custodian acts only in accordance with instruction from the Trustee.


229

Disclosure on Related-Party Transactions/Conflict of Interests

There are no existing and/or proposed related party transactions involving or in connection with the Fund. Should there be any proposed related party transaction(s) entered into by the Trustee, such transaction(s) will be on terms that are no less favourable to the Fund, neither will it be detrimental to the interest of the Unit Holders. Litigation and Arbitration

As at 31 March 2015, RHB Trustees Berhad is not engaged in any material litigation and arbitration, including those pending or threatened, and is not aware of any fact likely to give rise to any proceedings which might materially affect the business or financial position of RHB Trustees Berhad. Duties and Responsibilities of the Trustee

The Trustee’s functions, duties and responsibilities are set out in the Deed. The general function, duties and responsibility of the Trustee include, but are not limited to, the following: (a) Acting as trustee and safeguarding the rights and interests of the Unit Holders; (b) Holding the assets of the Fund for the benefit of the Unit Holders; and (c) Exercising all the powers of a trustee and the powers that are incidental to the ownership of the assets of the

Fund. The Trustee has covenanted in the Deed that it will exercise all due diligence and vigilance in carrying out its functions and duties, and in safeguarding the rights and interests of Unit Holders. Trustee’s Statement of Responsibility

RHB Trustees Berhad has given its willingness to assume the position as Trustee of the Fund and all the obligations in accordance with the Deed, the Guidelines, securities laws and other relevant law, and also its willingness to provide indemnity to the Manager for the benefit of the Unit Holders of the Fund for any loss incurred as a result of any non-performance of the Trustee.


230

14. SHARIAH ADVISER Profile of the Shariah Adviser

IBFIM has been appointed as the Shariah adviser for Kenanga Islamic Fund, Kenanga Syariah Growth Fund, Kenanga Islamic Balanced Fund, Kenanga i-Enhanced Cash Fund, Kenanga Islamic Money Market Fund, Kenanga Shariah Growth Opportunities Fund, Kenanga Ekuiti Islam Fund, Kenanga Shariah Balanced Fund and Kenanga Bon Islam Fund (“the Funds”). Scheduled to meet the Manager and/or the investment committee of the Funds every quarter, where IBFIM will advise the Manager on the selection of investment tools to be adopted. IBFIM will also counsel the mechanism of the operations of the Funds’ activities to ensure that the operations of the Funds comply with Shariah requirements. General Information of IBFIM

IBFIM was incorporated as a company limited by guarantee and not having share capital in Malaysia under the Companies Act, 1965 on 15 February 2007. Experience in Advisory and Services

IBFIM is registered with the SC to act as a Shariah adviser for Shariah-compliant collective investment schemes and sukuk issuance. IBFIM is also involved in numerous Shariah-compliant private mandates as well as the Shariah adviser for Islamic REITs and Islamic asset management houses. As at 31 March 2015, IBFIM has total staff strength of 77 employees, and has 78 funds under its supervision. Roles and Responsibilities of IBFIM as the Shariah Adviser

As the Shariah adviser, the role of IBFIM is to ensure that the operations and investments of the Funds are in compliance with Shariah requirements. The Shariah adviser reviews the Funds’ investments on a monthly basis to ensure compliance with Shariah requirements at all times and meets with the Manager on a quarterly basis to review and advise on the Funds’ compliance with Shariah requirements. Final responsibility for ensuring Shariah compliance of the Funds with Shariah requirements in all relevant aspects rests solely with the Manager.

In line with the Guidelines, the roles of IBFIM as the Shariah adviser are;

1. ensuring that the Shariah-compliant unit trust funds (“the Funds”) are managed and administered in

accordance with the Shariah principles; 2. providing expertise and guidance for the Funds in all matters relating to Shariah principles, including on

the Funds’ deed and prospectus, its structure and investment process, and other operational and administrative matters;

3. consulting the SC who may consult the SACSC where there is any ambiguity or uncertainty as to an

investment, instrument, system, procedure and/or process; 4. scrutinising the Funds’ compliance report as provided by the compliance officer, transaction report

provided by or duly approved by the trustee and any other report deemed necessary for the purpose of ensuring that the Funds’ investments are in line with the Shariah principles;

5. preparing a report to be included in the Funds’ interim and annual report certifying whether the Funds have been managed and administered in accordance with the Shariah principles;

6. ensuring that the Funds comply, with any guideline, ruling or decision issued by the SC, with regard to Shariah matters;

7. vetting and advising on the promotional materials of the Funds; and

8. assisting and attending to any ad-hoc meeting called by the SC and/or any other relevant authority.


231

Profile of the Shariah Team

IBFIM’s Shariah team consists of the following personnel: Dato’ Mohd Bakir Bin Haji Mansor (Distinguished Shariah Advisor) Dato’ Mohd Bakir is a member of the Shariah Supervisory Council of Bank Islam Malaysia Berhad (BIMB), the

Shariah Advisory Body of Syarikat Takaful Malaysia Berhad and sits on the Shariah Panel Committee of Amanah Ikhtiar Malaysia. He is also the Chairman of the Shariah Advisory Committee of BIMB Securities Sdn. Bhd. Prior to joining IBFIM, Dato’ Mohd Bakir was the Shariah Coordinator at BIMB, from 1984 to 2001. Previously, he served at the National Council for Islamic Religious Affairs in the Prime Minister's Department for 10 years from 1971. He was also a Chief Assistant Director at the Islamic Research Centre for 4 years from 1981. He holds a Shahadah Ulya from Kolej Islam Malaya. Dato’ Mohd Bakir was awarded “Anugerah Maulidur Rasul 1434H/2013M” by the government of Malaysia for his contributions in promoting the Islamic finance industry. Mohd Nasir Bin Ismail (Shariah Advisor)

Mohd Nasir, a holder of the Islamic Financial Planner (IFP) certification, has been with IBFIM since its incorporation in 2001. He is responsible in providing Shariah input on the advisory, consultancy and research functions with regard to Islamic banking, takaful, Islamic capital market and Shariah-compliant unit trust funds. Prior to joining IBFIM, he was a faculty member of a private higher learning institution specializing in Islamic studies, Institut Pengajian Ilmu-Ilmu Islam, Kelantan. He graduated with a Bachelor of Shariah (Honours) Degree from the University of Malaya. He is also a designated person responsible for Shariah matters related to the Shariah-compliant funds management related activities. Ahmad Zakirullah Bin Mohamed Shaarani (Shariah Advisor)

Ahmad Zakirullah joined IBFIM in February 2008. He is responsible in providing Shariah input on the advisory,

consultancy and research functions with regard to Islamic banking, takaful, Islamic capital market and Shariah-compliant unit trust funds. Prior to joining IBFIM, he served at University Sains Islam Malaysia and PTPL College. He obtained his Diploma of Shariah Islamiyyah (Honours) from Higher Institute of Islamic and Arabic Language (MADIWA), Perak; Bachelor of Shariah Islamiyyah (Honours) Degree from Al-Azhar University, Egypt; and Master’s Degree (with Honours) of Islamic Revealed Knowledge and Heritage (Fiqh and Usul al-Fiqh) from the International Islamic University Malaysia. He is also a designated person responsible for Shariah matters related to the Shariah-compliant funds management related activities.



232

15. CONFLICT OF INTERESTS AND RELATED PARTY TRANSACTIONS Policies and Procedures on Dealing with Conflict of Interest

Manager

The directors, investment committee and staff of the Manager must be alert and avoid or declare any conflict of interest situations to the company secretary. A situation of conflict of interest may erode the trust and confidence of the public in dealing with the Manager. All conflict of interest situations, if any, will be forwarded to the investment committee for verification before a fair and equitable decision is reached. The decision from the investment committee will be final. As at 31 March 2015, none of the Manager’s director or substantial shareholder has direct or indirect interest in other corporations carry on a similar business, except as otherwise disclosed below: Kenanga Islamic Investors Berhad is a wholly-owned subsidiary of Kenanga Investors Berhad. Direct and Indirect Interest in other Corporations Carrying on Similar Business as the Manager

Our appointment of Kenanga Islamic Investors Berhad as the External Fund Manager for KSGF, KIF, KIBF and KIMMF shall take effect from 29 October 2012.

Our appointment of Kenanga Islamic Investors Berhad as the External Fund Manager for KSGOF, KEIF, KSBF, KBIF and KIECF shall take effect from 1 November 2013.

Members Dealing in Securities

(a) Trading in securities by a member for his/her personal account or for a connected person or under the

name of a nominee is not encouraged and if done so, he/she should ensure that the dealing is not taking advantage or be viewed as taking advantage of information not generally known to the public (“Chinese Wall” provision = artificial barriers to the flow of information).

(b) Dealings by employees in their own name but on behalf, and for the benefit, of another person may only

be carried out with the prior approval of a director and/or chief executive officer. (c) A member when dealing in securities whether for the company, the client or personal account shall

consistently adhere to ethical standards in such dealings. A member shall not engage in share dealing transactions of a nature that is questionable or illegal and therefore shall not engage in share dealing transactions, either by himself or with others which are, or which will give resemblance of false trading, market rigging or market manipulation.

Trustee – Universal Trustee (Malaysia) Berhad (KIF and KBNF)

Universal Trustee (Malaysia) Berhad has confirmed that they have no interest/potential interest or conflict of interest/potential conflict of interest with the Manager and the Funds. Trustee – CIMB Commerce Trustee Berhad (KPF, KGF, KBF, KMIF, KMMF, KIECF, KCPF, KBCF, KGOF, KSGOF, KEIF, KMGF, KDF, KSBF, KIPF and KBIF)

CIMB Commerce Trustee Berhad has confirmed that they have no interest/potential interest or conflict of interest/potential conflict of interest with the Manager and the Funds. Trustee – CIMB Islamic Trustee Berhad (KSGF, KIBF and KIMMF)

CIMB Islamic Trustee Berhad has confirmed that they have no interest/potential interest or conflict of interest/potential conflict of interest with the Manager and the Funds. Trustee – RHB Trustees Berhad (KAPTRF)

RHB Trustees Berhad has confirmed that they have no interest/potential interest or conflict of interest/potential conflict of interest with the Manager and the Fund. Advisers

The auditors, tax adviser, Shariah adviser and solicitor have confirmed that they have no interest/potential interest or conflict of interest/potential conflict of interest with the Manager and the Funds.


233

16. APPROVALS AND CONDITIONS Kenanga Syariah Growth Fund (KSGF)

Paragraph 6, Schedule A of the Guidelines stipulates that the value of a fund’s placement in Islamic deposits with any single financial institution must not exceed 20% of the fund’s NAV. The Manager has obtained a variation from Paragraph 6 whereby KSGF is permitted to place not more than 50% of the Fund’s NAV in a single financial institution provided always the Fund’s NAV is less than RM10 million.



234

17. CONSENTS The consent of the Trustees, the External Fund Manager, the auditor, the banker, tax adviser, Shariah adviser and solicitor for the inclusion in this Master Prospectus of their names in the manner and form in which such names appear have been given before the issue of this Master Prospectus and none of them have subsequently withdrawn their written consents. The consent of the tax adviser for the inclusion in this Master Prospectus of the tax adviser’s letter in the manner, context and form in which such letter appears has been given before the issue of this Master Prospectus and the tax adviser has not subsequently withdrawn their written consent.



235

18. ADDITIONAL INFORMATION Updates on the Funds

The interim and annual reports of each Fund will be forwarded to Unit Holders no later than two (2) months after the end of the financial period in respect of each Fund. The Manager’s Selling/Repurchase Price per Unit (which is the NAV per Unit) and the Funds’ respective NAV are quoted daily in the major national newspapers. Unit Holders and potential investors can refer to web-site: www.KenangaInvestors.com.my for pricing information. A statement of accounts will be issued to each Unit Holder on a half yearly basis. It will summarise all transactions effected within each Fund for the past six (6) months and/or since inception as a Unit Holder. Unclaimed Moneys

In accordance to the Unclaimed Moneys Act, 1965, the Manager will declare all unclaimed distributions/money to the Registrar of Unclaimed Moneys, Accountant General’s Department at the end of one (1) year after the distributions declaration date or any other dates, where applicable. During this period, Unit Holders are able to claim their

distributions/money from the Manager by providing all the necessary documentation to authenticate their claims. After the one (1) year period, the Manager will remit the unclaimed moneys to the Registrar. Following this, Unit Holders who wish to claim their distributions/money are required to forward their claims directly to the Registrar by completing Form UMA7 (Claim form to refund unclaimed moneys from the Consolidated Trust Account) together with supporting documents i.e. identity card and distribution warrant. Form UMA7 may be obtained from the Registrar. Anti-Money Laundering Policies

Money laundering is a process intended to conceal the benefits derived from unlawful activities which are related, directly or indirectly, to any serious offence so that they appear to have originated from a legitimate source. The Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA) is the act that provides for the offence of money laundering and also the measures to be taken for the prevention of money laundering and terrorism financing offences. The Financial Intelligence and Enforcement Department (FIED) of Bank Negara Malaysia (BNM) has been established to carry out the functions as the competent authority under the AMLA. All market intermediaries under the Act and management companies approved by the Securities Commission under the Act are obliged to comply with the provisions of the AMLA. Under the AMLA, any person who: a) engages in, or attempts to engage in; or b) abets the commission of, money laundering, commits an offence and shall on conviction be liable to a fine not exceeding five million ringgit or to imprisonment for a term not exceeding five years or both. When opening new accounts and entering into a transaction with a client, the Manager identifies and verifies the client through documents such as identity card, passport, birth certificate, driver’s licence, constituent documents or any other official documents, whether in the possession of a third party or otherwise. Such documents shall be filed by the Manager in accordance with relevant laws. Where the Manager suspects that a particular transaction may not be genuine, a report will be made to the FIED. Disclosure Of Material Contracts

There are no material contracts in respect of the Funds (including contracts not reduced in writing), not being contracts entered in the ordinary course of business which have been entered into within two (2) years preceding the date of this Master Prospectus: Customer Service

Unit Holders can seek the assistance of our marketing personnel on Fund related issues at the Manager’s business office during our business hours from 8.30 a.m. to 5.30 p.m. from Monday to Friday (refer to the Directory of the Manager’s Office and List of IUTA section at page 8 for contact numbers).

http://www.kenangainvestors.com.my/


236

Official Receipt/Statement of Investment

Official receipt in the name of each successful applicant will be forwarded by ordinary post to the address shown on the application form at the applicant’s own risk within sixty (60) days from the date of purchase. Unsuccessful applicants will be notified and their money will be refunded by the Manager within thirty (30) days from the date of receipt by ordinary post at the applicant’s own risk. In addition, the statement of investment will be issued semi-annually to investors. Recognition of Unit Holders

The Manager will only recognize Unit Holders whose names are contained in the register of Unit Holders.



237

19. DOCUMENTS AVAILABLE FOR INSPECTION For a period of not less than twelve (12) months, the following documents or copies thereof, where applicable, may be inspected, without charge at the registered office of the Manager or such other place as the SC may determine: (a) the Deeds; (b) each material contract disclosed in this Master Prospectus (if any) and, in the case of contracts not

recuded into writing, a memorandum which gives full particulars of the contracts; (c) all reports, letters or other documents, valuations and statements by any expert, any part of which is

extracted or referred to in this Master Prospectus (if any); (d) the audited financial statements of the Funds for the current financial year (where applicable) and for the

last three (3) financial years or if the Funds have been extablished/incorporated for a period of less than three (3) years, the entire period preceding the date of this Master Prospectus;

(e) writ and relevant cause papers for all current material litigation and arbitration disclosed in the Master Prospectus; and

(f) any consent given by experts disclosed in this Master Prospectus.



238

20. TAX ADVISER’S LETTER

Taxation adviser’s letter in respect of the taxation of the unit trust and the unit holders

(prepared for inclusion in this prospectus)

Ernst & Young Tax Consultants Sdn Bhd 12 May 2015 Level 23A, Menara Milenium Pusat Bandar Damansara 50490 Kuala Lumpur The Board of Directors Kenanga Investors Berhad Suite 12.02, Kenanga International Jalan Sultan Ismail 50250 Kuala Lumpur Dear Sirs Taxation of the unit trust and Unit Holders

This letter has been prepared for inclusion in this Master Prospectus (30 June 2015 to 29 June 2016) to be dated 30 June 2015 in connection with the offer of units in the following unit trusts known as:

Kenanga Premier Fund

Kenanga Growth Fund

Kenanga Islamic Fund





Kenanga Bond Fund









Kenanga Ekuiti Fund


Kenanga Diversified Fund


Kenanga Income Plus Fund

Kenanga Bon Islma Fund

(hereinafter referred to as “the Funds”). The purpose of this letter is to provide prospective unit holders with an overview of the impact of taxation on the Funds and the Unit Holders.

Taxation of the Funds

The taxation of the Funds is subject to the provisions of the Malaysian Income Tax Act, 1967 (“MITA”), particularly Sections 61 and 63B. Under Section 2(7) of the MITA, any reference to interest shall apply, mutatis mutandis, to gains or profits received and expenses incurred, in lieu of interest, in transactions conducted in accordance with the principles of Syariah. The effect of this is that any gains or profits received (hereinafter referred to as “profits”) and expenses incurred, in lieu of interest, in transactions conducted in accordance with the principles of Syariah, will be accorded the same tax treatment as if they were interest.


239

Subject to certain exemptions, the income of the Funds comprising interest and other investment income derived from or accruing in Malaysia after deducting tax allowable expenses, is subject to Malaysian income tax, which is currently imposed at the rate of 25%

1.

Tax allowable expenses would comprise expenses falling under Section 33(1) and Section 63B of the MITA. Section 33(1) permits a deduction for expenses that are wholly and exclusively incurred in the production of gross income. In addition, Section 63B allows unit trusts a deduction for a portion of other expenses (referred to as ‘permitted expenses’) not directly related to the production of income, as explained below. “Permitted expenses” refer to the following expenses incurred by the Funds which are not deductible under Section 33(1) of the MITA:

the manager's remuneration,

maintenance of the register of unit holders,

share registration expenses,

secretarial, audit and accounting fees, telephone charges, printing and stationery costs and postage.

These expenses are given a partial deduction under Section 63B of the MITA, based on the following formula: A x B 4C where A is the total of the permitted expenses incurred for that basis period;

B is gross income consisting of dividend2, interest and rent chargeable to tax for that basis

period; and C is the aggregate of the gross income consisting of dividend

2 and interest (whether such

dividend or interest is exempt or not) and rent, and gains made from the realisation of investments (whether chargeable to tax or not) for that basis period,

provided that the amount of deduction to be made shall not be less than 10% of the total permitted expenses incurred for that basis period. Exempt income

The following income of the Funds is exempt from income tax:

Malaysian sourced dividends

Tax exempt dividends received from investments in companies which had previously enjoyed or are currently enjoying certain tax incentives provided under the relevant legislation. Any dividends paid, credited or distributed to any person where the company paying such dividends is not entitled to deduct tax under Section 108 of MITA (commonly referred to as single tier dividends).

Malaysian sourced interest

(i) interest from securities or bonds issued or guaranteed by the government of Malaysia; (ii) interest from debentures or Islamic securities, (other than convertible loan stock) approved by the

Securities Commission; (iii) interest from Bon Simpanan Malaysia issued by Bank Negara Malaysia;

________________________________________________________________________________________ 1

Pursuant to Section 20 of the Finance (No. 2) Act 2014, with effect from the year of assessment 2016, the income tax rate will be reduced to 24%.

2 Pursuant to Section 15 of the Finance Act 2011, with effect from the year of assessment 2011, dividend income is deemed to include income distributed by a unit trust which includes distributions from Real Estate Investment Trusts.


240

(iv) interest derived from Malaysia and paid or credited by banks or financial institutions licensed

under the Banking and Financial Institutions Act 1989 or the Islamic Banking Act 19833, 4

;

(v) interest from Islamic securities originating from Malaysia, other than convertible loan stock issued in any currency other than Ringgit and approved by Securities Commission or Labuan Offshore Financial Services Authority (LOFSA)

5

(vi) interest received from bonds or securities issued by Pengurusan Danaharta Nasional Berhad;

and (vii) interest derived from bonds (other than convertible loan stock) paid or credited by any company

listed on the Malaysian Exchange of Securities Dealing and Automated Quotation Berhad (MESDAQ)

6.

Discount

Tax exemption is given on discount paid or credited to any unit trust in respect of investments as specified in items (i), (ii) and (iii) above.

Foreign sourced income

Dividends, interest and other income derived from sources outside Malaysia and received in Malaysia by a resident unit trust is exempt from Malaysian income tax. However, such income may be subject to tax in the country from which it is derived. Gains from the realisation of investments

Pursuant to Section 61(1) (b) of the MITA, gains from the realisation of investments will not be treated as income of the Funds and hence, are not subject to income tax. Such gains may be subject to real property gains tax ("RPGT") under the Real Property Gains Tax Act, 1976 (“RPGT Act”), if the gains are derived from the sale of chargeable assets, as defined in the RPGT Act. Goods and Services Tax (GST)

On 1 April 2015, GST was implemented at the standard rate of 6% to replace the existing sales tax and service tax systems. Based on the Goods and Services Tax Act 2014 which was gazetted on 19 June 2014, the Funds, being a collective investment vehicle, will be making exempt supplies. Hence, the Funds are not required to be registered for GST purposes. The Funds will incur expenses such as management fees, trustee fees and other administrative charges which will be subject to 6% GST. The 6% input tax which may be incurred on such expenses will generally not be claimable by the Funds. ________________________________________________________________________________________ 3

The Banking and Financial Institution Act 1989 and the Islamic Banking Act 1983 were repealed and replaced with the Financial Services Act 2013 and the Islamic Financial Services Act 2013, respectively, with effect from 30 June 2013. Pursuant to Section 272(h) of the Financial Services Act 2013 and Section 283(h) of the Islamic Financial Services Act 2013, any reference to the Banking and Financial Institutions Act 1989 and the Islamic Banking Act 1983 in any written law shall generally be construed as a reference to the Financial Services Act 2013 or the Islamic Financial Services Act 2013, respectively.

4 Pursuant to Section 22(c) of the Finance (No. 2) Act 2014, with effect from the year of assessment 2015, the interest derived

from Malaysia and paid or credited by any development financial institution regulated under the Development Financial Institutions Act 2002 will be exempted from tax.

5 Pursuant to Section 4 of the Finance Act 2011, with effect from 11 February 2010, any reference in the MITA to ‘LOFSA’

shall be construed as a reference to Labuan Financial Services Authority (LFSA). 6 MESDAQ was replaced by FTSE Bursa Malaysia ACE with effect from 3 August 2009, therefore any interest derived from

bonds (other than convertible loan stock) paid or credited by any company listed on the MESDAQ should still qualify for an exemption up to 2 August 2009. However, from 3 August 2009 and up to the date of this letter, there is no new gazette order issued to exempt interest derived from bonds paid or credited by a company listed in the new FTSE Bursa Malaysia ACE.


241

Taxation of unit holders

For Malaysian income tax purposes, unit holders will be taxed on their share of the distributions received from the Funds. The income of unit holders from their investment in the Funds broadly falls under the following categories: 1. taxable distributions; and 2. non-taxable and exempt distributions. In addition, unit holders may also realise a gain from the sale of units. The tax implications of each of the above categories are explained below: 1. Taxable distributions

Distributions received from the Funds will have to be grossed up to take into account the underlying tax paid by the Funds and the unit holder will be taxed on the grossed up amount. Such distributions carry a tax credit, which will be available for set-off against any Malaysian income tax payable by the unit holder. Should the tax deducted at source exceed the tax liability of the unit holder, the excess is refundable to the unit holder. Please refer to the paragraph below for the income tax rates applicable to the grossed up distributions.

2. Non-taxable and exempt distributions

Tax exempt distributions made out of gains from the realisation of investments and other exempt income earned by the Funds will not be subject to Malaysian income tax in the hands of the unit holders.

Rates of tax

The Malaysian income tax chargeable on the unit holders depends on their tax residence status and whether they are individuals, corporations or trust bodies. The income tax rates charged are as follows:

Unit holders Malaysian income tax rates

Malaysian tax resident:

Individual and non-corporate unit holders (such as associations and societies)

Co-operatives7

Trust bodies

Progressive tax rates ranging from 0% to 26%

8

Progressive tax rates ranging from 0% to 25%

9

25%1

________________________________________________________________________________________ 7 Pursuant to Paragraph 12(1), Schedule 6 of the MITA, the income of any co-operative society-

(a) in respect of a period of five years commencing from the date of registration of such co-operative society; and (b) thereafter where the members’ funds [as defined in Paragraph 12(2)] of such co-operative society as at the first day of

the basis period for the year of assessment is less than seven hundred and fifty thousand ringgit is exmpt from tax.

8 Pursuant to Section 20 of the Finance (No. 2) Act 2014, with effect from the year of assessment 2015,the top Malaysian income tax rate for resident individuals will be reduced from 26% to 25%.

9 Pursuant to Section 20 of the Finance (No. 2) Act 2014, with effect from the year of assessment 2015, the top Malaysian income tax rate for co-operatives be reduced from 25% to 24%.


242

Unit holders Malaysian income tax rates

Corporate unit holders (i) A company with paid up capital in respect

of ordinary shares of not more than RM2.5 million (at the beginning of the basis period for the year of assessment)

10

(ii) Companies other than (i) above

First RM500,000 of chargeable income @ 20%

11

Chargeable income in excess of RM500,000 @ 25%

10

25%1

Non-Malaysian tax resident (Note):

Individual and non-corporate unit holders Corporate unit holders and trust bodies

26%12

25%1

Note: Non-resident unit holders may be subject to tax in their respective countries depending on the provisions of the tax legislation in the respective countries and any existing double taxation arrangements with Malaysia. Gains from sale of units

Gains arising from the realisation of investments will not be subject to income tax in the hands of unit holders unless they are insurance companies, financial institutions or traders/ dealers in securities. ________________________________________________________________________________________ 10

A company would not be eligible for the 20% tax rate on the first RM500,000 of chargeable income if:- (a) more than 50% of the paid up capital in respect of the ordinary shares of the company is directly or indirectly owned by

a related company which has paid up capital in respect of ordinary shares of more than RM2.5 million at the beginning of a basis period for a year of assessment;

(b) the company owns directly or indirectly more than 50% of the paid up capital in respect of the ordinary shares of a related company which has paid up capital in respect of ordinary shares of more than RM2.5 million at the beginning of a basis period for a year of assessment;

(c) more than 50% of the paid up capital in respect of the ordinary shares of the company and a related company which has a paid up capital in respect of ordinary shares of more than RM2.5 million at the beginning of a basis period for a year of assessment is directly or indirectly owned by another company.

11 Pursuant to Section 20 of the Finance (No. 2) Act 2014, with effect from the year of assessment 2016, the income tax rate be reduced to 19% on chargeable income up to RM500,000 and 24% on the remaining chargeable income.

12 Pursuant to Section 20 of the Finance (No. 2) Act 2014, with effect from the year of assessment 2015, the income tax rate for non-resident individuals will be reduced from 26% to 25.


243

Unit splits and reinvestment of distributions

Unit holders may also receive new units as a result of unit splits or may choose to reinvest their distributions. The income tax implications of these are as follows:

Unit splits – new units issued by the Funds pursuant to a unit split will not be subject to income tax in the hands of the unit holders.

Reinvestment of distributions – unit holders may choose to reinvest their income distribution in new units by informing the Manager. In this event, the unit holder will be deemed to have received the distribution and reinvested it with the Funds.

********************************************** We hereby confirm that, as at the date of this letter, the statements made in this report correctly reflect our understanding of the tax position under current Malaysian tax legislation and the related interpretation and practice thereof, all of which are subject to change, possibly on a retrospective basis. We have not been retained (unless specifically instructed hereafter), nor are we obligated to monitor or update the statements for future conditions that may affect these statements. The statements made in this letter are not intended to be a complete analysis of the tax consequences relating to an investor in the 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

Julie Thong Partner Ernst & Young Tax Consultants Sdn. Bhd. has given its consent to the inclusion of the Taxation Adviser’s Letter in the form and context in which it appears in this Master Prospectus and has not withdrawn such consent before the issue of this Master Prospectus.

This page has been intentionally left blank

Kenanga Investors Berhad

Head Of�ceSuite 12.02, 12th Floor, Kenanga InternationalJalan Sultan Ismail50250 Kuala LumpurMalaysia

Website

www.kenangainvestors.com.my

Email

[email protected]

Toll Free Line

1-800-88-3737

master prospectus - kenanga investors...regularly, open to the public and has adequate liquidity for...

Documents