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PREFACE
Dear prospective investors,
Thank you for considering an investment in A
MB Shariah V
alue Plus Fund, an open-ended Shariah-com
pliant equity fund offering investments in m
ultiple Classes of Units. You m
ay refer to section 3 of this prospectus for details of the different features of each Class. The Fund aim
s to provide investors with capital grow
th through investments in Shariah-com
pliant securities that are trading at a discount to their intrinsic values. To achieve its objective, the Fund seeks to m
aximise total returns by providing investors m
ainly from capital appreciation through diversified
investments prim
arily in Shariah-compliant stocks listed on the Bursa M
alaysia. The Fund will invest up to
30% of the Fund’s N
AV in the A
sia Pacific ex-Japan markets.The countries that the Fund m
ay invest in will
include, but not limited to M
alaysia, Singapore, Indonesia, Thailand, Philippines, India, Hong Kong and
China (via the Hong Kong Stock Exchange), Korea, Taiw
an, Australia and Vietnam
. The Fund may also
invest in Shariah-compliant equities and equities related that derives the m
ajority of their revenue from
the Asia Pacific ex-Japan m
arkets. The investm
ent approach for the Fund emphasises on a “bottom
-up” approach that focuses on specific stock selection rather than m
arkets and sectors. Shariah-compliant equities and equities related are
selected for their value (value driven approach). The Fund is suitable for investors w
ho are seeking investments that are in accordance w
ith Shariah Principles, have a long term
investment horizon in excess of 5 years and are w
illing to accept risks for returns presented by the equity m
arkets. Aside from
Malaysia, the Fund w
ill also be marketed in
Singapore and Japan hence investor’s suitability may further depend on their preference based on the
different features of each Class as disclosed in section 3 of this prospectus. The Fund will also be in
compliance w
ith the ASEA
N CIS Fram
ework in order to access the participating jurisdictions. A
s with any
investment, investors should be aw
are of the specific risks of investing in this Fund which include equity
risk, credit risk, interest rate risk, currency risk, Class currency risk, reclassification of Shariah status risk, country risk and settlem
ent risk. Further information on the risk factors can be found in section 4 of this
prospectus. The Fund im
poses a sales charge of a maxim
um 5.5%
of the NA
V per Unit for the respective Classes. There
is no repurchase charge for this Fund. The annual managem
ent fee for this Fund is 1.50% per annum
of the N
AV for retail Classes and 1.30%
per annum of the N
AV for institutional Classes. The annual trustee
fee for all Classes is 0.06% per annum
. Further details of all fees and charges are disclosed in section 6 of this prospectus. G
ST imposed on the fees and other relevant charges w
ill be borne by the Fund and Unit
Holders respectively.
Investments can be m
ade directly at our business office or at any appointed Distribution Channels as
listed under section 17 of this prospectus. Should you have any inquiries or require further information,
you may call A
MB Client Services U
nit at +603-2034 0800, email us at am
.my or brow
se our com
pany website at w
ww
.ambm
utual.com.m
y. Thank you for allowing us to be of service to you.
Yours faithfully, For and on Behalf of A
manah M
utual Berhad A
ldilla@Zilfalila binti A
bdul Halim
(Sheila Halim
) Chief Executive O
fficer
RESPO
NSIB
ILITY STATEM
ENT
This prospectus has been review
ed and approved by the directors of Am
anah Mutual Berhad and
they collectively and individually accept full responsibility for the accuracy of the information.
Having m
ade all reasonable enquiries, they confirm to the best of their know
ledge and belief, that there are no false or m
isleading statements, or om
ission of other facts which w
ould make any
statement in the prospectus false or m
isleading.
STATEM
ENTS O
F DISC
LAIMER
The Securities Comm
ission Malaysia has authorised the Fund and a copy of this prospectus has
been registered with the Securities Com
mission M
alaysia.
The authorisation of the Fund, and registration of this prospectus, should not be taken to indicate that the Securities Com
mission M
alaysia recomm
ends the Fund or assumes responsibility for the
correctness of any statement m
ade, opinion expressed or report contained in this prospectus.
The Securities Comm
ission Malaysia is not liable for any non-disclosure on the part of the
managem
ent company responsible for the said Fund and takes no responsibility for the contents
in this prospectus. The Securities Comm
ission Malaysia m
akes no representation on the accuracy or com
pleteness of this prospectus, and expressly disclaims any liability w
hatsoever arising from,
or in reliance upon, the whole or any part of its contents.
IN
VESTOR
S SHO
ULD
RELY O
N TH
EIR O
WN
EVALUA
TION
TO A
SSESS THE
MER
ITS AN
D R
ISKS O
F THE IN
VESTMEN
T. IF INVESTO
RS AR
E UN
AB
LE TO M
AK
E TH
EIR O
WN
EVALU
ATIO
N, TH
EY AR
E AD
VISED TO
CO
NSU
LT PRO
FESSION
AL
AD
VISERS.
N
o units will be issued or sold based on this prospectus later than one year after the date of this
prospectus.
Investors should note that they may seek recourse under the Capital M
arkets and Services Act
2007 for breaches of securities laws and regulations including any statem
ent in the prospectus that is false, m
isleading, or from w
hich there is a material om
ission; or for any misleading or
deceptive act in relation to the prospectus or the conduct of any person in relation to the Fund.
AM
B Shariah Value Trust Fund has been certified as Shariah-com
pliant by the Shariah adviser appointed for the Fund.
This prospectus does not constitute an offer or solicitation by anyone in any jurisdiction in which
an offer or solicitation is not lawful or in w
hich the person making such an offer or solicitation is
not qualified to do so or to anyone to whom
it is unlawful to m
ake such a solicitation. It is the responsibility of any persons in possession of this prospectus and any persons w
ishing to apply for U
nits in the Fund to inform them
selves of and to observe all applicable laws and regulations
of any relevant jurisdiction. Prospective investors should inform them
selves as to the legal requirem
ents of applying for Units and any applicable exchange control regulations and taxes in
the countries of their respective citizenship, residence, domicile or incorporation.
AM
BSVPF Prospectus
AM
B Client Services 03-2034 0800 1
TABLE O
F CON
TENTS
Section
Page
1 G
LOSSA
RY OF TERM
S/ABBREV
IATIO
NS
3 2
CORPO
RATE D
IRECTORY
8 3
SUM
MA
RY OF KEY FEA
TURES O
F THE FU
ND
13
3.1
General Inform
ation on the Fund 13
3.2
General Inform
ation on Classes of the Fund 15
3.3
Fees and Charges 16
3.4
Information on Transaction
18
3.5 O
ther Information
19 4
RISK FACTO
RS 20
4.1
General Risks
20
4.2 Specific Risks A
ssociated with AM
BSVPF 21
5 D
ETAILED
INFO
RMA
TION
ON
THE FU
ND
24
5.1
Investment O
bjective 24
5.2
Portfolio Investment Strategy and Policy
24
5.3 Perm
itted Investments for the Fund
27
5.4 Investm
ent Restrictions 27
5.5
Bases of Valuation 29
5.6
Policy on Gearing and Liquid A
ssets 30
5.7
Shariah Investments
31 6
FEES, CHA
RGES A
ND
EXPENSES
35
6.1 D
irect Charges 35
6.2
Indirect Fees 37
6.3
Fund’s Expenses 37
6.4
Policy on Brokerage Rebates and Soft Comm
issions 37
7 TRA
NSA
CTION
INFO
RMA
TION
38
7.1
Pricing 38
7.2
Transaction Details on Purchase of U
nits 42
7.3
Transaction Details on Repurchase of U
nits 45
7.4
Transfer of Units
46
7.5 Sw
itching 47
7.6
Conversion 48
7.7
Distribution Channel(s)
48
7.8 Incom
e Distribution Policy
48
7.9 Policy on U
nclaimed M
onies 49
8 TH
E MA
NA
GEM
ENT A
ND
AD
MIN
ISTRATIO
N O
F THE FU
ND
50
8.1
Corporate Profile of the Manager
50
8.2 Past Perform
ance of the Manager
51
8.3 Profile of the Board of D
irectors of the Manager
51
8.4 Com
pany Secretary 53
8.5
Senior Compliance O
fficer 54
AM
BSVPF Prospectus
2 A
MB Client Services 03-2034 0800
8.6
Profile of the Key Managem
ent Staff of the Manager
54
8.7 The Investm
ent Comm
ittee of the Fund Managed by the M
anager 56
8.8
Profile of the Shariah Comm
ittee 56
8.9
Profile of the External Investment M
anager 58
8.10
Declaration of Conflict of Interest involving EIM
60
8.11
Manager’s D
elegate 61
8.12
Material Litigation and Arbitration
61 9
THE TRU
STEE OF TH
E FUN
D
62
9.1 Profile of CIM
B Islamic Trustees Berhad
62
9.2 Roles, D
uties and Responsibilities of the Trustee 63
10 SA
LIENT TERM
S OF TH
E DEED
65
10.1
Rights and Liabilities of Unit H
olders 65
10.2
Maxim
um Fees and Charges Perm
itted by the Deed
65
10.3 Increase in Fees and Charges from
the Level Disclosed in the Prospectus
and the Maxim
um Rate Provided in the D
eed 66
10.4
Permitted Expenses Payable out of the Fund’s Property
66
10.5 Retirem
ent, Removal and Replacem
ent of the Manager
66
10.6 Retirem
ent, Removal and Replacem
ent of the Trustee 67
10.7
Termination of the Fund or a Class of U
nits of the Fund 68
10.8
Unit H
olders’ Meeting
68
11
APPRO
VA
LS AN
D CO
ND
ITION
S 70
12 RELA
TED PA
RTY TRAN
SACTIO
NS/CO
NFLICT O
F INTEREST
71 13
TAXA
TION
OF TH
E FUN
D
73 14
AD
DITIO
NA
L INFO
RMA
TION
80
14.1
Customer Inform
ation Service 80
14.2
Regular Reports and Statements on your Investm
ent 80
14.3
Register of Unit H
olders 81
14.4
Anti-M
oney Laundering Policy 81
14.5
Material Contracts
81 15
CON
SENTS
82 16
DO
CUM
ENTS A
VA
ILABLE FO
R INSPECTIO
N
82 17
LIST OF D
ISTRIBUTIO
N CH
AN
NELS
82
AM
BSVPF Prospectus
AM
B Client Services 03-2034 0800 3
1. G
LOSSA
RY OF TERM
S / ABBREV
IATIO
NS
The following w
ords or abbreviations shall have the following m
eanings in this prospectus unless otherw
ise stated:
“Act” or “CM
SA”
The Capital Markets and Services A
ct 2007 (Malaysia) including all
amendm
ents thereto and all regulations rules and guidelines issued in connection therew
ith.
“ACM
F” A
SEAN
Capital Markets Forum
.
“ACM
F Retail MoU
” The m
emorandum
of understanding on streamlined authorisation
framew
ork for
cross -border public
offers of
ASEA
N
Collective Investm
ent Schemes.
“ACM
F Signatory” Signatory refers to the securities regulator of the A
SEAN
jurisdiction w
hich has signed the ACM
F Retail MoU
.
“AM
B” or “Manager”
Am
anah Mutual Berhad (195414-U
).
“AM
B Family of Funds”
All funds under the m
anagement of the M
anager.
“AM
BSVPF” or “Fund”
AM
B Shariah Value Plus Fund.
“A-M
YR” Class of U
nits denominated in M
YR under income distribution
policy1 for retail investors.
“ASN
B”
Am
anah Saham N
asional Berhad (47457-V), the holding company of
the Manager.
“Base Currency” The base currency of the Fund i.e. M
alaysian Ringgit (MYR).
“B-JPY” Class of U
nits denominated in JPY under accum
ulation of Units
policy2 for retail investors.
“Bond Pricing Agency
Malaysia Sdn. Bhd.” or
“BPAM
”
A bond pricing agency registered w
ith the SC.
“B-SGD
” Class of U
nits denominated in SG
D under accum
ulation of Units
policy2 for retail investors.
“Bursa Malaysia”
The Malaysian stock exchange, operated and m
aintained by Bursa M
alaysia Securities Berhad (635998-W).
“B-USD
” Class of U
nits denominated in U
SD under accum
ulation of Units
policy2 for retail investors.
“Business Day(s)”
A day on w
hich the Bursa Malaysia is open for trading in securities.
“Class”
Any class of U
nits representing similar interests in the assets of the
Fund differentiated by currency denomination.
“C-MYR”
Class of Units denom
inated in MYR under incom
e distribution policy
1 for institutional investors.
1 D
etails of the income distribution policy are on pages 14 and 48 of this prospectus.
2 Details of the accum
ulation of Units policy are on pages 14 and 48 of this prospectus.
AM
BSVPF Prospectus
4 A
MB Client Services 03-2034 0800
“CIMB Islam
ic ” CIM
B Islamic Bank Berhad (671380-H
).
“Collective Investment
Scheme”
Has
the sam
e m
eaning as
given under
the G
uidelines w
hich includes am
ong others unit trust funds, real estate investment
trusts, exchange-traded funds and closed-end funds.
“Comm
encement D
ate”
The date on which investm
ents of the Fund will first be m
ade which
is the next Business Day im
mediately follow
ing the end of the IOP.
“Cooling-off Period” The cooling-off period of the Fund is w
ithin six (6) Business Days
comm
encing from the date the M
anager receives the completed
application to purchase Units.
“Cooling-off Right” The right given to an investor w
ho is investing in the AMB Fam
ily of Funds for the first tim
e to obtain a refund of the investment in the
Fund including the sales charge if requested by the investor within
the Cooling -off
Period, save
and except
for a
corporation or
institution, a staff of the Manager, and a person registered w
ith a body approved by the SC to deal in unit trusts.
“Deed”
The deed in relation to the Fund including any supplem
entary deed betw
een the Manager, the Trustee and the U
nit Holders for the
Fund.
“Distribution Branch”
A
ny branch, outlet or any other premises of the D
istribution Channel for the purpose of m
arketing and distribution of Units.
“Distribution Channel”
A
n institution, corporation or an organisation that is appointed by A
MB for the purpose of m
arketing and distributing the Fund inside and outside M
alaysia as allowed by the applicable law
s.
“Eligible Market”
A
ny market, such as the stock m
arket, futures market, m
oney m
arket, any over-the-counter private debt securities market, as
agreed in writing from
time to tim
e by the Manager and Trustee,
which falls w
ithin the definition of an Eligible Market as defined in
the Guidelines.
“External Investment
Manager” or “EIM
” Kenanga Islam
ic Investors Berhad (451957-D).
“FiMM
” Federation of Investm
ent Managers M
alaysia, a self-regulatory organisation (SRO
) for the Malaysian unit trust industry.
“Forward Pricing”
The price of a U
nit that is the NA
V per Unit calculated at the next
Valuation Point after an application for purchase or repurchase request is received.
“FSA”
The Financial Services Act 2013, including all am
endments thereto
and all regulations, rules and guidelines issued in connection
therewith and w
ill include any successor act.
AM
BSVPF Prospectus
AM
B Client Services 03-2034 0800 5
“GST”
The Goods and Services Tax (G
ST) implem
ented effective 1 April
2015 at a rate of 6% to replace the consum
ption tax i.e. the sales tax and service tax. U
nit Holders w
ill be subjected to GST based on
the Industry Guide on Fund M
anagement issued by the Royal
Malaysian Custom
s Departm
ent.
“Guidelines”
The G
uidelines on
Unit
Trust Funds
and any
other relevant
guidelines on
unit trust
fund issued
by the SC
as am
ended, m
odified or varied by any notes, circulars and guidelines issued from
time to tim
e by the SC.
“IFSA”
The Islamic Financial Services A
ct 2013, including all amendm
ents thereto
and all
regulations, rules
and guidelines
issued in
connection therewith and w
ill include any successor act.
“Initial Offer Period” or
“IOP”
The period of time as prescribed in this prospectus w
here Units are
offered for sale.
“Initial Offer Price”
The price of Units offered for sale during the IO
P.
“Investment Com
mittee”
The investm
ent com
mittee
of the
Fund w
hich is
primarily
responsible for formulating, im
plementing and m
onitoring the investm
ent managem
ent strategies of the Fund in accordance with
the Fund’s investment objective, the D
eed, the Guidelines and
applicable laws, the internal investm
ent restrictions and policies, and acceptable and efficacious investm
ent managem
ent practices w
ithin the unit trust industry.
“Islamic deposits”
Has the sam
e meaning as given under the IFSA
.
“IUTA
” A
ny institutional unit trust adviser, which is an institution, a
corporation or an organisation that is registered with FiM
M or
other relevant authorities for distribution of unit trust funds.
“JPY” The law
ful currency of Japan i.e. Japanese Yen.
“Licensed Financial Institution”
Any bank or financial institution licensed under the FSA
or IFSA or
if the
institution is
outside M
alaysia, any
institution that
is licensed/registered/approved/authorised by the relevant banking regulator to provide financial services.
“LPD”
The latest practicable date for the purposes of ascertaining the inform
ation contained in this prospectus, i.e. 31 March 2015.
“MYR”
The lawful currency of M
alaysia i.e. Malaysian Ringgit.
“Net A
sset Value” or “N
AV
” The N
AV of the Fund is determ
ined by deducting the value of all the Fund’s liabilities from
the value of all the Fund’s assets, at the Valuation
Point. For
the purpose
of com
puting the
annual m
anagement fee and annual trustee fee, the N
AV should be
inclusive of the managem
ent fee and trustee fee for the relevant
AM
BSVPF Prospectus
6 A
MB Client Services 03-2034 0800
day. The NAV of a Class is the N
AV of the Fund attributable to a Class at the sam
e Valuation Point.
“NA
V per U
nit”
The NA
V attributable to a Class divided by the number of U
nits in Circulation for that Class, at the Valuation Point.
“Organised M
arket” A
n exchange,
government
securities m
arket or
an over-the-
counter market:
(a) that
is regulated
by the
relevant com
petent regulatory
authority of that jurisdiction; (b)
that is of good repute; (c)
that is open to the public or a substantial number of m
arket participants; and
(d) on w
hich financial instrument are regularly traded.
“PNB”
Perm
odalan N
asional Berhad
(38218-X), the
ultimate
holding com
pany of the Manager.
“Qualifying CIS”
A unit trust fund:
(a) constituted or established in a country of an A
CMF Signatory
and has been approved for offer to the public in its domicile
country; and (b)
has been assessed by the ACM
F Signatory whose jurisdiction
the fund is domiciled in, as suitable for cross-border offering
to the public in other ACMF Signatory countries pursuant to
the ACM
F Retail MoU
.
“RAM
”
RAM
Rating Services Berhad (208095-U), a credit rating agency in
Malaysia.
“Repurchase Price of Units”
The repurchase price of U
nits by Unit H
olders of any Class is calculated at the N
AV per Unit as at the next Valuation Point after
the complete repurchase request is received by the M
anager.
“SC”
Securities Comm
ission Malaysia, a statutory body entrusted w
ith the
responsibility of
regulating and
systematically
developing M
alaysia's capital markets.
“SGD
” The law
ful currency of Singapore i.e. Singapore Dollar.
“Shariah Comm
ittee” The com
mittee appointed by the M
anager for AM
BSVPF to ensure that the Fund is m
anaged and administered in accordance w
ith Shariah Principles.
“Shariah Principles”
Shariah principles are based on Islamic law
, originating from the
Quran as w
ell as practices and explanations rendered by the Prophet
Muham
mad
(PBUH
), ijm
ak (consensus of
opinion), qiyas (analogical deduction), m
aslahah (public interest) and other sources that are in line w
ith Shariah.
AM
BSVPF Prospectus
AM
B Client Services 03-2034 0800 7
“Standards of Qualifying CIS”
Is a set of rules and regulations, as agreed and may be am
ended from
time to tim
e amongst the A
CMF Signatories, w
hich applies only to a Q
ualifying CIS under the ACM
F Retail MoU
.
“Sukuk” Certificates of equal value w
hich evidence undivided ownership or
investment in the assets using Shariah principles and concepts
approved by the Shariah Advisory Council (SA
C) of the SC. Types of Sukuk include Sukuk bai’ bitham
al ajil, Sukuk murabahah, Sukuk
istisna’, Sukuk ijarah, Sukuk mudharabah and Sukuk m
usharakah.
“transferable securities” Refers to: a)
equities and other securities equivalent to equities; and b)
Sukuk and other forms of securitised debt;
but do not include money m
arket instruments or any security the
title to which can be transferred only w
ith the consent of a third party.
“Trustee” CIM
B Islamic Trustee Berhad (167913-M
).
“Unit H
older(s)”
A person(s) registered as holder(s) of U
nits of any Class and whose
name(s) appear(s) in the register of U
nit Holders.
“Unit(s)”
Unit(s) of any Class of the Fund.
“Units in Circulation” or
“UIC”
Units created and fully paid.
“USD
” The law
ful currency of the United States of Am
erica i.e. US D
ollar.
“Valuation Point”
Such time on a Business D
ay as may be decided by the M
anager w
herein the
NA
V per
Unit
is calculated.
Under
normal
circumstances,
only one
(1) valuation
is conducted
on each
Business Day.
For foreign investments, valuation of the Fund w
ill be conducted after the close of business of Bursa M
alaysia for the relevant day, as certain foreign m
arkets in which the Fund m
ay invest in have yet to close due to the different tim
e zones of these countries. As
such, the Valuation Point will be after the close of Bursa M
alaysia but not later than 9.00 a.m
. (or any other such time as m
ay be perm
itted by the relevant authorities from tim
e to time) on the
following day in w
hich the Manager is open for business.
For the avoidance of doubt, any references to time in this prospectus shall refer to M
alaysian local tim
e which is G
reenwich M
ean Time (G
MT) + 8:00.
Definitions or m
eanings of words not otherw
ise expressly defined above shall have the m
eaning or interpretation as ascribed in the Act, the G
uidelines and any other relevant laws
governing unit trust funds.
AM
BSVPF Prospectus
8 A
MB Client Services 03-2034 0800
2. CO
RPORA
TE DIRECTO
RY
MA
NA
GER
Am
anah Mutual Berhad (195414-U
) Chief Executive O
fficer A
ldilla @ Zilfalila binti A
bdul Halim
(Sheila Halim
) Registered O
ffice 4th Floor, Balai PN
B 201-A, Jalan Tun Razak 50400 Kuala Lum
pur Telephone
: (603)-2050 5100 Facsim
ile
: (603)-2163 3477
Business Office
34th Floor, Menara PN
B 201-A, Jalan Tun Razak 50400 Kuala Lum
pur Telephone
: (603)-2034 0800
Facsimile
: (603)-2162 5958 / (603)-2163 3212 A
MB Client Services U
nit : (603)-2034 0800
: am
.my
Website
: w
ww
.ambm
utual.com.m
y
Business Hours
: 9.00 a.m. to 6.00 p.m
.
BO
ARD
OF D
IRECTORS
• Tun A
hmad Sarji bin A
bdul Ham
id Chairm
an(Non-Executive/N
on-Independent Director)
•
Tan Sri Dato' Sri H
amad Kam
a Piah bin Che Othm
an (N
on-Executive/Non-Independent D
irector) •
Tan Sri Dato' D
r. Wan M
ohd. Zahid bin Mohd. N
oordin (N
on-Executive/Independent Director)
• Tan Sri D
ato' Md. D
esa bin Pachi (N
on-Executive/Independent Director)
INV
ESTMEN
T COM
MITTEE M
EMBERS
• Tun A
hmad Sarji bin A
bdul Ham
id Chairm
an (Non-Independent m
ember)
• Tan Sri D
ato' Dr. W
an Mohd. Zahid bin M
ohd. Noordin
(Independent mem
ber) •
Tan Sri Dato' M
d. Desa bin Pachi
(Independent mem
ber)
AM
BSVPF Prospectus
AM
B Client Services 03-2034 0800 9
SHA
RIAH
COM
MITTEE M
EMBERS
D
ato’ Dr. A
bdul Halim
bin Ismail
Chairman
Prof. D
atuk Dr. Syed O
thman bin Syed H
ussin Alhabshi
Prof. D
ato’ Dr. A
bdul Monir bin Yaacob
Prof. D
ato’ Dr. M
ahmood Zuhdi bin H
j Ab M
ajid
AU
DIT CO
MM
ITTEE
Tan Sri Dr. W
an Abdul A
ziz bin Wan A
bdullah Chairm
an (Independent mem
ber) •
Tan Sri Dato' M
d Desa bin Pachi
(Independent mem
ber) •
Tan Sri Datuk A
mar Bujang bin M
ohamm
ed Bujang Moham
med N
or (Independent m
ember)
CO
MPLIA
NCE CO
MM
ITTEE
Tan Sri Dr. W
an Abdul A
ziz bin Wan A
bdullah Chairm
an (Independent mem
ber) •
Tan Sri Dato‘ Sri H
amad Kam
a Piah bin Che Othm
an
(Non-Independent m
ember)
• Tan Sri D
ato' Md. D
esa bin Pachi
(Independent mem
ber) •
Encik Paisol bin Ahm
ad (N
on-Independent mem
ber)
RISK M
AN
AG
EMEN
T COM
MITTEE
• Tan Sri D
atuk Am
ar Bujang bin Moham
med Bujang M
ohamm
ed Nor
(Chairman)
• Tan Sri A
smat bin Kam
aluddin •
Tan Sri Dato’ M
d. Desa bin Pachi
• Tan Sri D
ato’ Seri Ainum
binti Moham
ed Saaid
CO
MPA
NY SECRETA
RY Puan A
dibah Khairiah binti Ismail @
Daud
(MIA
13755) 4th Floor, Balai PN
B 201-A, Jalan Tun Razak 50400 Kuala Lum
pur
AM
BSVPF Prospectus
10 A
MB Client Services 03-2034 0800
TRUSTEE
CIMB Islam
ic Trustee Berhad (167913-M)
Registered Office
Level 13, Menara CIM
B Jalan Stesen Sentral 2 Kuala Lum
pur Sentral 50470 Kuala Lum
pur Tel: (603) - 2261 8888 Fax: (603) - 2261 0099 W
eb: ww
w.cim
b.com
Business Office
Level 21, Menara CIM
B Jalan Stesen Sentral 2 Kuala Lum
pur Sentral 50470 Kuala Lum
pur Tel: (603) - 2261 8888 Fax: (603) - 2261 9889 D
elegate: CIM
B Islamic N
ominees (Tem
patan) Sdn Bhd (8424-H)
Registered Office
Level 13, Menara CIM
B Jalan Stesen Sentral 2 Kuala Lum
pur Sentral 50470 Kuala Lum
pur Tel: (603) - 2261 8888 Fax: (603) - 2261 8889 W
eb: ww
w.cim
b.com
Business Office
Level 21, Menara CIM
B Jalan Stesen Sentral 2 Kuala Lum
pur Sentral 50470 Kuala Lum
pur Tel: (603) - 2261 8888 Fax: (603) - 2261 9892
AM
BSVPF Prospectus
AM
B Client Services 03-2034 0800 11
EXTERNA
L INV
ESTMEN
T MA
NA
GER
Kenanga Islamic Investors Berhad (451957-D
) Registered O
ffice 8
th Floor, Kenanga International Jalan Sultan Ism
ail 50250 Kuala Lum
pur Telephone : (603) - 2162 1490 Facsim
ile : (603) - 2161 4990 W
ebsite
: ww
w.kenanga.com
.my
Business Office
Suite 12.03, 12th Floor
Kenanga International Jalan Sultan Ism
ail 50250 Kuala Lum
pur, Malaysia
Tel: (603) - 20573688 Fax: (603) - 2161 8805 M
AN
AG
ER’S DELEG
ATE
Permodalan N
asional Berhad (38218-X) 4th Floor, Balai PN
B 201-A, Jalan Tun Razak 50400 Kuala Lum
pur Telephone : (603) - 2050 5100 Fax : (603) - 2050 5268 W
ebsite
: ww
w.pnb.com
.my
(fund accounting and fund valuation functions) CIM
B Islamic Trustee Berhad (167913-M
) Registered O
ffice Level 13, M
enara CIMB
Jalan Stesen Sentral 2 Kuala Lum
pur Sentral 50470 Kuala Lum
pur Tel: (603) - 2261 8888 Fax: (603) - 2261 0099 W
eb: ww
w.cim
b.com
Business Office
Level 21, Menara CIM
B Jalan Stesen Sentral 2 Kuala Lum
pur Sentral 50470 Kuala Lum
pur Tel: (603) - 2261 8888 Fax: (603) - 2261 9886
AM
BSVPF Prospectus
12 A
MB Client Services 03-2034 0800
AU
DITO
RS M
essrs. Ernst & Young
Chartered Accountants
Level 23A Menara M
ilenium, Jalan D
amanlela
Pusat Bandar Dam
ansara, 50490 Kuala Lumpur
Telephone : (603) - 7495 8000
Facsimile
: (603) - 2095 5332
TAX A
DV
ISOR
Ernst & Young Tax Consultants Sdn Bhd
Level 23A Menara M
ilenium
Jalan Dam
anlela, Pusat Bandar Dam
ansara 50490 Kuala Lum
pur Telephone
: (603) - 7495 8000 Facsim
ile
: (603) - 2095 5332
PRINCIPA
L BAN
KER CIM
B Islamic Bank Berhad (671380-H
) CIM
B Islamic Bank Berhad
Ground Floor, M
enara CIMB
No. 1, Jalan Stesen Sentral 2
Kuala Lumpur Sentral
50470 Kuala Lumpur
Telephone : 1 300 880 900 Facsim
ile : (603) - 2261 0566 W
ebsite
: ww
w.cim
bislamic.com
SOLICITO
RS M
essrs. Zainal Abidin &
Co. Suite 1803 – 1806 18th Floor, Plaza Perm
ata Jalan Kam
par Off Jalan Tun Razak
50400 Kuala Lumpur
Telephone
: (603) - 4041 5266 Facsim
ile
: (603) - 4042 7179
FEDERA
TION
OF IN
VESTM
ENT M
AN
AG
ERS MA
LAYSIA
(FiMM
) 19-06-1, 6th Floor, W
isma Tune
19, Lorong Dungun, D
amansara H
eights 50490 Kuala Lum
pur Telephone
: (603) - 2093 2600
Facsimile
: (603) - 2093 2700 W
ebsite
: ww
w.fim
m.com
.my
AM
BSVPF Prospectus
AM
B Client Services 03-2034 0800 13
3. SU
MM
ARY O
F KEY FEATU
RES OF TH
E FUN
D
This section is only a summ
ary of the salient information about the Fund. Investors should read
and understand the whole prospectus before m
aking investment decisions.
3.1 G
ENERA
L INFO
RMA
TION
ON
THE FU
ND
FUN
D IN
FORM
ATIO
N
Details
on page:
Nam
e of fund A
MB Shariah Value Plus Fund
Base currency
MYR
Category of fund Equity (Shariah)
Type of fund G
rowth
Investment
objective of the Fund
The Fund aims to provide investors w
ith capital growth through
investments in Shariah-com
pliant securities that are trading at a discount to their intrinsic values.
24
Investment
strategy The Fund seeks to m
aximise total returns by providing investors
mainly from
capital appreciation through diversified investments
primarily in Shariah-com
pliant stocks listed on the Bursa Malaysia
that are trading at a discount to their intrinsic values. How
ever, the Fund m
ay also invest up to 30% of the Fund’s N
AV in the A
sia Pacific ex-Japan m
arkets. The countries that the Fund m
ay invest in will include, but not lim
ited to M
alaysia, Singapore, Indonesia, Thailand, Philippines, India, Hong
Kong and China (via the Hong Kong Stock Exchange), Korea, Taiw
an, A
ustralia and Vietnam.
The Fund may also invest in Shariah-com
pliant stocks that derive the m
ajority of their revenue from the A
sia Pacific ex-Japan markets.
The investment approach for the Fund em
phasises on a “bottom-up”
approach that focuses on specific stock selection rather than markets
and sectors. Shariah-compliant stocks are selected for their value
(value driven approach).
25
Asset allocation
(% of N
AV
)
Min 70%
to max. 98%
in Shariah-compliant equities and equity
related securities i.e. warrants, exchange traded funds, preferred
shares, convertible loan stocks, transferable subscription rights and depository receipts.
M
in 2%
in
Islamic
deposits and/or
Shariah-compliant
money
market instrum
ents.
24
AM
BSVPF Prospectus
14 A
MB Client Services 03-2034 0800
FUN
D IN
FORM
ATIO
N
Details
on page:
Benchmark
The benchmark is an absolute of 8%
annualised growth in N
AV,
compounded over the long term
1 period. Please note that this is not a guaranteed return, but a benchm
ark against w
hich the performance of the Fund m
ay be measured.
24
Principal risks associated w
ith the Fund
The principal risks of investing in the Fund are equity risk, credit risk, interest rate risk, currency risk, Class currency risk, reclassification of Shariah status risk, country risk and settlem
ent risk.
21
Investors’ profile
The Fund is suitable for investors who : -
are seeking investm
ents that are in accordance with Shariah
Principles;
have a long term1 investm
ent horizon; and
are willing to accept risks for returns presented by the equity
markets.
Distribution
policy
It is not the main objective of the Fund to distribute incom
e as the m
ain focus of the Fund is to secure capital growth in line w
ith the perform
ance of the Fund’s benchmark.
Classes with incom
e distribution policy For Classes A
-MYR and C-M
YR, income distribution, if any, is declared
at the end of the financial year of the Fund or for any specified period, as m
ay be determined by the M
anager in consultation with
the Trustee. Any distribution w
ill be at the discretion of the Manager,
and is
incidental to
carrying out
the investm
ent function
in accordance w
ith the objective and investment strategy of the Fund.
The distribution of the Fund will vary depending on its perform
ance and prevailing econom
ic conditions. Classes w
ith accumulation U
nits policy For
Classes B-JPY,
B-SGD
and
B-USD
, there
will
be no
income
distributions made to the U
nit Holder. H
owever, the value of the
Unit H
older’s investment m
ay increase as reflected in the increase in the N
AV per U
nit (subject to the performance of the Fund) i.e. gains,
if any, from the Fund’s investm
ent is retained and accumulated
which w
ill be reflected by a higher NA
V per Unit and vice versa.
48
Dom
icility M
alaysia
External Investm
ent M
anager
Kenanga Islamic Investors Berhad (451957-D
)
58
1 ‘long-term
’ is a period of more than 5 years.
AM
BSVPF Prospectus
AM
B Client Services 03-2034 0800 15
FUN
D IN
FORM
ATIO
N
Details
on page:
Trustee CIM
B Islamic Trustee Berhad (167913-M
) 62
Comm
encement
Date
7 July 2015
Financial year end
31 May
3.2 G
ENERA
L INFO
RMA
TION
ON
CLASSES O
F THE FU
ND
Classes m
ay differ in terms of currency denom
ination, rate of fees and charges, income distribution
policy and whether offered to retail or institutional investors. A
separate NA
V per Unit w
ill be calculated for each Class. The N
AV per U
nit will be denom
inated in the currency of the respective Class and m
ay differ between Classes as a consequence of the various features of each Class.
The following are the features of each Class:
Class Currency
denomination of U
nits Category of
investor D
istribution policy Initial O
ffer Price
A-M
YR* M
YR Retail
Distribution of incom
e M
YR 0.50 per Unit
C-MYR*
MYR
Institutional D
istribution of income
MYR 0.50 per U
nit
B-JPY JPY
Retail A
ccumulation U
nits JPY 10 000 per U
nit
B-SGD
SG
D
Retail A
ccumulation U
nits SG
D 0.50 per U
nit
B-USD
U
SD
Retail A
ccumulation U
nits U
SD 1.00 per U
nit * These Classes are only offered in M
alaysia. N
ote: The price after IOP w
ill be based on the NAV per U
nit for each Class. The IO
P for all Classes will begin and end concurrently from
16 June 2015 to 6 July 2015.
AM
BSVPF Prospectus
16 A
MB Client Services 03-2034 0800
3.3 FEES A
ND
CHA
RGES
The following section describes the charges that you m
ay directly incur when you purchase or
repurchase Units of the Fund.
(a)
Charges
Sales and repurchase charge
Class M
anager/Distribution Channel
(% of N
AV
per Unit)
Maxim
um sales charge
Repurchase charge
A-M
YR, C-MYR, B-JPY, B-SG
D, B-U
SD
5.5 N
il
Note:
The sales charge is negotiable, subject to the Manager’s discretion.
Transfer charge D
etails on transfer transaction can be found in section 7.4 on page 46 of this prospectus.
Class Transfer charge
A-M
YR, C-MYR
MYR 25
B-JPY JPY 1 000
B-SGD
SG
D 25
B-USD
U
SD 25
Sw
itching charge D
etails on switching transaction can be found in section 7.5 on page 47 of this prospectus.
Sw
itch out from the follow
ing Classes to any other fund w
ithin the AM
B Family of Funds
Switching charge
A-M
YR, C-MYR
MYR 25
B-JPY JPY 1 000
B-SGD
SG
D 25
B-USD
U
SD 25
Conversion charge D
etails on conversion transaction can be found in section 7.6 on page 48 of this prospectus.
Convert from the follow
ing Classes to any other Class
Conversion charge
A-M
YR, C-MYR
MYR 25
B-JPY JPY 1 000
B-SGD
SG
D 25
B-USD
U
SD 25
The above charges are subject to GST w
hich is payable by Unit H
olders.
AM
BSVPF Prospectus
AM
B Client Services 03-2034 0800 17
Other adm
inistrative charges In addition to the charges expressly allow
ed to be charged directly by the Manager and/or
the Trustee, the Unit H
older may be required to pay a charge as allow
ed by the Deed, w
here applicable in respect of: a)
any document supplied to the U
nit Holder at the U
nit Holder’s request;
b) bank charges, courier charges and any other relevant charges incurred for repurchase of U
nits; or c)
any act of administrative nature carried out for the U
nit Holder at the U
nit Holder’s
request. The above charges are subject to G
ST which is payable by U
nit Holders.
(b)
Fees
This table describes the fees that you may indirectly incur w
hen you invest in the Fund.
Class A
nnual m
anagement
fee (%)
Annual trustee
fee O
ther annual operating expenses
A-M
YR 1.50
Up to 0.06%
per annum
of the N
AV of the Fund.
The NA
V is a gross N
AV,
before deducting
annual m
anagement fee
and trustee fee for the day.
The auditor’s fees, tax agent’s fee and other relevant
professional fees;
the costs
of printing
and distribution
of annual
and interim
reports, tax vouchers and warrants;
cost of modification of the D
eed other than those for the benefit of the M
anager and/or Trustee; and other notices to U
nit Holders as
well as expenses that are directly related and
necessary for the administration of the Fund
as set
out in
the D
eed (including
any applicable G
ST). These
costs have
been factored
into the
quoted NA
V per Unit as they are related and
necessary to the business of the Fund.
C-MYR
1.30
B-JPY 1.50
B-SGD
1.50
B-USD
1.50
N
ote: Each Class is charged at the above m
entioned rates per annum respectively. The
annual managem
ent fee is calculated and accrued on a daily basis before deducting the annual m
anagement fee and trustee fee for the day. The annual m
anagement
fee shall be rounded to the nearest two (2) decim
al points. The above fees are subject to G
ST which is payable by the Fund.
Please refer to section 6 comm
encing from page 35 for further details on the fees and charges.
There are fees and charges involved and investors are advised to consider them before
investing in the Fund.
AM
BSVPF Prospectus
18 A
MB Client Services 03-2034 0800
3.4 IN
FORM
ATIO
N O
N TRA
NSA
CTION
The follow
ing section is a summ
ary of the conditions on the investment transactions in respect of
the Fund that investors must take into consideration before m
aking their decision:
Class M
inimum
initial investm
ent(inclusive of sales charge)
Minim
um additional
investment(inclusive of
sales charge)
M
inimum
balance requirem
ent (1)
A-M
YR M
YR 500 M
YR 100
100 Units
C-MYR
MYR 1 M
illion M
YR 5,000 100 U
nits
B-JPY JPY 200 000
JPY 100 000 1 U
nit
B-SGD
SG
D 500
SGD
100 100 U
nits
B-USD
U
SD 500
USD
100 100 U
nits
N
ote (1): The Manager is allow
ed to close the Unit H
older’s account, at the Manager’s
discretion, should the balance in Unit H
older’s account fall below the m
inimum
balance requirem
ent.
Repurchasing of Units
Repurchase of U
nits during the IOP is not perm
itted. The
repurchase am
ount payable
to the
Unit
Holders
for the
repurchase of Unit s is calculated at the N
AV per U
nit.
Minim
um repurchase
amount
There is no minim
um repurchase am
ount imposed on a U
nit H
older. How
ever, for partial repurchase, the minim
um balance of
Units in the U
nit Holder’s account m
ust always be satisfied.
Frequency of repurchase There is no restriction on the frequency of repurchase.
Payment of repurchase
proceeds The M
anager will pay the repurchase proceeds to U
nit Holders
within 7 Business D
ays or 10 days of the receipt of the completed
repurchase application, whichever is earlier.
Cooling-off Period W
ithin six
(6) Business
Days
comm
encing from
the
date the
Manager receives the com
pleted application to purchase Units.
Please refer to section 7 comm
encing on page 38 further information on transactions.
AM
BSVPF Prospectus
AM
B Client Services 03-2034 0800 19
3.5
OTH
ER INFO
RMA
TION
(i)
Foreign currency account (FCA)
For investment in Classes denom
inated in currencies other than MYR, you are required to have
a FCA denom
inated in the respective currency in any Licensed Financial Institution. Any
payments due to you for transactions in the respective Classes w
ill be made by bank transfer to
your FCA.
(ii) Deed
U
nit Holders m
ay refer to the Deed dated 17 A
pril 2015 for more specific inform
ation on the Fund.
There are fees and charges involved and investors are advised to consider them before
investing in the Fund. U
nit prices and distributions payable, if any, may go dow
n as well as up.
For information concerning certain risk factors w
hich should be considered by prospective investors see “Risk Factors” com
mencing on page 20.
AM
BSVPF Prospectus
20 A
MB Client Services 03-2034 0800
4. RISK FA
CTORS
All investm
ents carry some form
of risk. In addition to the other information stated in the
prospectus, prospective investors should consider the elements of risks before investing in the Fund
as the values of the investment in the Fund could fluctuate due to these risks:
4.1
GEN
ERAL RISKS
Fund managem
ent risk Perform
ance of
a fund
depends on
the experience,
expertise, know
ledge and
investment
techniques of the fund manager. Poor m
anagement of a fund can cause considerable losses to the
fund, and as a result may affect capital invested by unit holders.
For this Fund, the fund managem
ent function is delegated to the EIM w
ho have experience, expertise and know
ledge in managing a fund. Possible poor investm
ent managem
ent of the Fund by the EIM
can be mitigated through consistent m
onitoring by the Investment Com
mittee of the
Fund which m
eets with the EIM
once a month. The Investm
ent Comm
ittee is guided by the relevant rules and regulations, the D
eed, the prospectus and the investment m
anagement agreem
ent betw
een AM
B and the EIM in relation to the Fund. A
ll instruments selected and recom
mended by
the EIM w
ill need the Investment Com
mittee’s approval before it can be part of the Fund’s
portfolio. N
on-compliance risk
This is a risk of non-adherence to the Guidelines e.g. breach of investm
ent restriction and limits, the
deed and relevant laws and regulations in the m
anagement of a fund. In addition, non
-compliance
risk also includes not observing company’s internal policy to ensure fund is m
anaged accordingly. A
s a result, the value or performance of a fund m
ay be adversely affected. To m
itigate, the Manager has stringent internal controls w
hich includes automated system
with
limits and controls in place and ensures that com
pliance monitoring processes are undertaken.
Inflation risk A
fund may experience a return rate low
er than that of an inflation rate at any point of time. A
s a result, unit holders’ investm
ent in a unit trust fund may have increased in m
onetary terms,
however the purchasing pow
er of their investment m
ay have decreased due to inflation rate exceeding the investm
ent return rate. Liquidity risk This refers to the ease of liquidating an investm
ent at or close to its fair value and is dependent on the investm
ent’s volume traded in the m
arket. Generally, investm
ents in securities of smaller
companies or in sm
aller markets m
ay expose the fund to greater liquidity risk due to smaller trading
volumes as there m
ay be smaller am
ounts of such securities being issued and traded in the said m
arket. If the fund holds many securities that are illiquid, or difficult to dispose of, the value of the
fund may be affected w
hen it has to sell such securities at a discount or a loss, relative to the fair value of such securities.
AM
BSVPF Prospectus
AM
B Client Services 03-2034 0800 21
The fund may also face inability to honour repurchase request w
ithin a time fram
e stipulated under the G
uidelines when the fund holds insufficient liquid assets and/or w
hen the Manager is unable to
borrow cash on a tem
porary basis as permitted by the G
uidelines to meet repurchase request.
Loan/financing risk W
hen investors apply loan/financing to finance purchase of units of a fund, they may be exposed to
the inherent risk of an inability to service the loan repayments/financing paym
ents. Investors may
also be subjected to higher loan repayments/financing paym
ents in the event that interest rate increases. In the event units are used as collateral, an investor, m
ay be required by the financier to provide additional collateral if the unit prices fall beyond a certain level due to m
arket conditions. If the investor fails to honour the additional collateral w
ithin the prescribed time, the units m
ay be sold tow
ards settling the loan/financing. O
perational risk O
perational risk is typically associated to human error, system
failure, ineffective processes, procedures and controls, and fraud w
hich may cause breakdow
n, deficiencies or weaknesses in the
operational support functions of a managem
ent company. This m
ay result in insufficient degree of client services to an investor e.g. possible decrease of personnel to attend to client servicing, delay in attending to clients’ queries/requests due to system
breakdown etc., and low
internal control im
plemented by a m
anagement com
pany. Force m
ajeure risk The risk of exposure to force m
ajeure events, where events are not w
ithin the control of a fund m
anager. This includes terrorist attacks, political instability, natural disasters and spread of disease w
here risks are generally unforeseen which m
ay result in the inability of a fund manager to fulfill
their obligations as fund manager of a fund. Consequently, this inability m
ay have an adverse im
pact on the performance of a fund.
4.2
SPECIFIC RISKS ASSO
CIATED
WITH
AM
BSVPF
Equity risk A
MBSVPF is subject to the volatility of prices in the share m
arket. The volatility of prices in each Shariah-com
pliant stock will affect the Fund’s value daily. The perform
ance of individual Shariah-com
pliant stocks, which m
ake up the portfolio of the Fund, will fluctuate according to changes in
the market value of the investm
ents. The fluctuations can be significant in the short-term and m
ay negatively im
pact the performance of the Fund. H
owever, this im
pact is mitigated through portfolio
diversification. For equity related securities i.e. w
arrants, exchange traded funds, preferred shares, convertible loan stocks, transferable subscription rights and depository receipts, price m
ovement is dependent
on the price movem
ent of the underlying Shariah-compliant equities. A
dditionally, equity related securities that are a leveraged form
of investment generally carry a higher risk than their underlying
Shariah-compliant equities as the price of these equity related securities generally fluctuates m
ore
AM
BSVPF Prospectus
22 A
MB Client Services 03-2034 0800
than the underlying equities and may consequently affect the volatility of the Fund’s N
AV. The risk
is mitigated through fundam
ental analysis and stringent stock selection criteria. Credit risk This is the risk that the issuer of a m
oney market instrum
ent may default and not be able to m
ake tim
ely principal and/or profit payments of the instrum
ent concerned. Instruments w
ith a lower
credit rating would norm
ally have greater risk of defaults. In general, this risk can be m
itigated by investing in Shariah-compliant m
oney market instrum
ents that carry credit ratings that are at least of investm
ent grade. In the absence of a credit rating for the Shariah-com
pliant instruments, the credit rating of the financial institution issuing the Shariah-
compliant instrum
ents will be used instead. The Fund w
ill seek to mitigate this risk by investing in
Shariah-compliant instrum
ents with credit ratings of at least “A
3” or “P2” by RAM
or “AA
” by Standard &
Poor’s (S&P) or equivalent ratings by other rating agencies.
Interest rate risk This risk refers to how
changes in the interest rate environment w
ould affect the performance of a
Shariah-compliant
money
market
instrument.
In the
event of
an increasing
interest rate
environment, the value of Shariah-com
pliant money m
arket instruments in the Fund’s portfolio
generally may decline as yields rise. Interest rate, such as the overnight policy rate set by Bank
Negara M
alaysia, will have an im
pact on the investment decisions of the Fund regardless of
whether it is a Shariah-com
pliant fund or otherwise. It does not in any w
ay suggest that the Fund w
ill invest in conventional financial instruments.
Currency risk This risk is associated w
ith investments denom
inated in currencies different from the Base
Currency. As the Fund is denom
inated in MYR, investm
ents in assets denominated in currencies
other than MYR w
ill cause the Fund to be exposed to currency risks. If foreign currencies move
unfavourably against MYR, these investm
ents may face currency loss in addition to any capital gains
or losses, which w
ill affect the NA
V of the Fund, and consequently the NA
V per Unit of the Fund.
The Manager m
ay mitigate this risk by hedging the foreign currency exposure. H
owever, hedging
may lim
it any potential gain that might result from
favourable currency fluctuations. Class currency risk A
MBSVPF is denom
inated in MYR. W
here investments are m
ade by Unit H
olders in Classes denom
inated in currencies other than MYR, fluctuations to the exchange rate of the respective
currency of the Classes against the MYR m
ay affect the value of the Unit H
olders’ investment in the
relevant Class as expressed in MYR.
Reclassification of Shariah status risk This is the risk of securities w
hich were initially classified as Shariah-com
pliant securities and later classified as Shariah non-com
pliant. Rectification of the non-compliance i.e. disposal of the Shariah
non-compliant securities in the Fund’s portfolio, m
ay result in losses if the disposal of the Shariah non-com
pliant securities is at a price lower than the initial purchase price and affect the N
AV of the
Fund. This risk is mitigated by regular review
of the Fund’s compliance w
ith the list of securities classified as Shariah-com
pliant by the Shariah Advisory Council of the SC or any other relevant
authorities and monthly review
of the invested securities by the Shariah Comm
ittee of the Fund.
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B Client Services 03-2034 0800 23
Country risk The Fund m
ay be affected by risks specific to the countries in which it invests. Such risks m
aybe caused by but not lim
ited to changes in the country’s economic fundam
entals, social and political instability, currency m
ovements and foreign investm
ent policies. These factors may have an im
pact on the prices of the Fund’s investm
ents in that country and consequently may also affect the Fund’s
NA
V. Additionally, in som
e countries, direct investments in securities m
ay be prohibited and restricted due to regulatory requirem
ents. For instance, the prior application or registration of an investm
ent license or investor code is required in countries such as India, Korea, Taiwan and
Vietnam before any investm
ent can be made in these countries. A
s such, in the event that investm
ents in these countries are undertaken, there may be a risk that such registration or license
may be revoked or not renew
ed by the relevant authority. This may cause the Fund’s investm
ent in these countries to be frozen by the regulator of these countries and result in the investm
ent for the Fund in these countries to be suspended. Settlem
ent risk A
s the Fund may invest in different countries, the securities m
arkets of certain countries may lack
efficiency and regulatory controls. The investments of the Fund in certain countries m
ay be adversely affected by delays in, or refusal to grant relevant approvals for the repatriation of funds w
hich may result in delay in realising investm
ents made by the Fund.
Investors are reminded that the above list of risks m
ay not be exhaustive and if necessary, they should consult their adviser(s), e.g. their bankers, law
yers, stockbrokers or advisers for a better understanding of the risks.
AM
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24 A
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5. DETA
ILED IN
FORM
ATIO
N O
N TH
E FUN
D
5.1 IN
VESTM
ENT O
BJECTIVE
The Fund aims to provide investors w
ith capital growth through investm
ents into Shariah-compliant
securities that are trading at a discount to their intrinsic values.
Any m
aterial change to the investment objective of the Fund w
ould require Unit H
olders’ approval.
5.2 PO
RTFOLIO
INV
ESTMEN
T STRATEG
Y AN
D PO
LICY
1. A
sset allocation - based on NA
V
M
inimum
70% to m
aximum
98% in Shariah-com
pliant equities and equity related securities i.e. w
arrants, exchange traded funds, preferred shares, convertible loan stocks, transferable subscription rights and depository receipts.
M
inimum
2% in Islam
ic deposits and/or Shariah-compliant m
oney market instrum
ents.
2. Benchm
ark The perform
ance of AMBSVPF w
ill be an absolute of 8% annualised grow
th in NA
V per annum
compounded* over the long term
# period. Please note that this is
not a guaranteed return, but a benchmark against w
hich the perform
ance of
the Fund
may
be m
easured. The
Fund m
ay or
may
not achieve
the com
pounded* return of 8% of the N
AV per annum
but targets to achieve this growth over the
long-term.
# “long term
” is a period of more than 5 years.
* The follow
ing is a brief explanation on “compounded return”:
Com
pounded return is the rate of return, usually expressed as a percentage that represents the cum
ulative effect that a series of gains or losses have on an original amount of capital
over a period of time. Com
pounded return is usually expressed in annualised terms,
meaning that the percentage num
ber that is reported represents the annualised rate at w
hich capital has been compounded over tim
e. For exam
ple, if an investment fund claim
s to have produced an 8% annual com
pounded return over the past five years, this m
eans that at the end of its fifth year, the fund's capital has grow
n to a size equal to what it w
ould be if the funds on hand at the beginning of each year had earned exactly 8%
by the end of each year. In other w
ords, suppose you started with an initial investm
ent of MYR1,000. If you m
ultiply M
YR1,000 by 1.08 five times, you w
ill end up with about M
YR1,469. If an investment of
MYR1,000 ended up being w
orth MYR1,469 by the end of five years, the investm
ent could be said to have generated an 8%
annual compound return over that five year period.
AM
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AM
B Client Services 03-2034 0800 25
How
ever, this does not mean that the investm
ent actually appreciated by 8% during each of
the five years. Any pattern of grow
th that led to a final value of MYR1,469 after five years
would equate to an 8%
annualised return. Suppose the investm
ent earned nothing for the first four years, and then earned MYR469 in
its last year (a 46.9% return for the year). This w
ould still equate to an 8% annual com
pound return over the five-year m
easurement period since the final am
ount is still equal to what
the MYR1,000 w
ould have grown to if it had appreciated by a steady 8%
each year. 3.
Investment strategy
• Shariah-com
pliant equities and equity related securities The Fund w
ill invest in companies that are com
petitive and well-m
anaged and that offer good prospects w
ith sustainable growth w
hich contributes to raise the intrinsic value of a com
pany over the long term i.e. over a period of 5 years.
While the m
ain focus will be on long-term
value, the Manager w
ill only invest in companies
where the value is realisable and the grow
th potential can be justified. Competitive edge
will be defined in term
s of: •
superiority of products and service; •
business franchise; •
distribution capability; •
forward looking m
anagement;
• shareholder value orientated m
anagement style;
• financial strength;
• research and developm
ent capability; and •
high barriers to entry for competitors.
Our investm
ent approach emphasises on a “bottom
-up” approach that focuses on specific stock selection rather than m
arkets and sectors. Shariah-compliant stocks are selected for
their value (value driven approach). The equity selection w
ill be based on a rigorous process, which w
ill appraise the fair value of the equity through a discounted cash flow
model, m
arket value as well as on a relative value
basis. The equity selection is done in terms of price/earnings (P/E), P/E to grow
th (PEG),
dividend grow
th, dividend
yield, price
book value,
quality of
earnings (volatility,
sustainability, visibility), financial strength, com
petitive risks, profit margin, cash flow
analysis and quality of m
anagement.
The Fund seeks to maxim
ise total returns to investors mainly from
capital appreciation through diversified investm
ents primarily in Shariah-com
pliant stocks listed on the Bursa M
alaysia that are trading at a discount to their intrinsic values. How
ever, the Fund may also
invest up to 30% of the Fund’s N
AV in the Asia Pacific ex-Japan m
arkets. The countries that the Fund m
ay invest in will include, but not lim
ited to Malaysia,
Singapore, Indonesia, Thailand, Philippines, India, Hong Kong and China (via the H
ong Kong Stock Exchange), Korea, Taiw
an, Australia and Vietnam.
The Fund may also invest in Shariah-com
pliant stocks that derive the majority of their
revenue or profits from the A
sia Pacific ex-Japan markets.
AM
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26 A
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• Islam
ic deposits and Shariah-compliant m
oney market instrum
ents In order to m
eet repurchase requests, the Fund will retain a m
inimum
of 2% of the N
AV in
Islamic deposits and/or Shariah-com
pliant money m
arket instruments.
4.
Investment process
We adopt a bottom
-up approach to investing. Primary research supported by secondary
research is extensively used in making investm
ent decisions. Shariah-compliant stocks are
selected based on investment criteria such as discount to its intrinsic value, PEG
ratio, m
anagement quality, profitability, grow
th prospects, financial strength and dividend yield. W
e believe
superior long-term
investm
ent perform
ance can
be achieved
by exploiting
inefficiencies in capital markets through rigorous and intensive research w
ithin a disciplined investm
ent process. The investm
ent process in the managem
ent of a unit trust portfolio involves the following: -
(1) Setting up of investm
ent objective; (2)
Establishing an investment policy;
(3) Selecting an investm
ent strategy; (4)
Allocation of assets; and
(5) M
easuring and evaluating performance.
The investment portfolio of the Fund w
ill comprise of securities w
hich have been permitted by
the SC and classified as Shariah-compliant by the Shariah Advisory Council of the SC or have
been determined as Shariah-com
pliant by the Shariah Comm
ittee.
5. Policy on active and frequent trading of securities The Fund is actively m
anaged and the frequency of the Fund’s trading strategy is dependent on m
arket opportunities. 6.
Temporary defensive positions
When deem
ed appropriate and for the benefit of the Fund, the EIM m
ay take temporary
defensive positions in dealing with adverse m
arket, economic, political and other conditions,
that may be inconsistent w
ith the Fund’s principal strategy. In this regard, the Fund may
reallocate the Fund’s Shariah-compliant equity investm
ents into other asset classes such as Sukuk, Shariah-com
pliant money m
arket instruments and Islam
ic deposits, which are defensive
in nature. 7.
Portfolio risk managem
ent strategies and techniques The EIM
will be applying risk m
anagement controls over investm
ent portfolio including asset allocation, liquidity, adherence to investm
ent objective and investment param
eters, valuation, m
onitoring performance etc.
The EIM w
ill be reporting to the Investment Com
mittee w
hich meets on a m
onthly basis to review
and
approve the
investment
portfolio and
strategies. At
the sam
e sitting,
the Investm
ent Comm
ittee shall ensure that the investment objective of the Fund and com
pliance to the G
uidelines are met.
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B Client Services 03-2034 0800 27
5.3
PERMITTED
INV
ESTMEN
TS FOR TH
E FUN
D
(i) Islam
ic deposits; (ii)
Shariah-compliant m
oney market instrum
ents with Licensed Financial Institutions;
(iii) Shariah-com
pliant securities of companies listed on the Bursa M
alaysia or any other market
considered as an Eligible Market;
(iv) Shariah-com
pliant 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;
(v) Sukuk that are issued or guaranteed by the M
alaysian government, Bank N
egara Malaysia,
other related government agencies or foreign governm
ents; (vi)
Corporate Sukuk; (vii)
Shariah-compliant
Collective Investm
ent Schem
es (provided
consistent w
ith the
Fund’s investm
ent objective); (viii) Shariah-com
pliant structured products; (ix)
Shariah-compliant derivatives (for hedging purposes only);
(x) A
ny other forms of investm
ents that are in line with the Fund’s objective and as m
ay be agreed upon by the M
anager, the Investment Com
mittee and the Trustee that are in
compliance w
ith the Shariah Principles. N
ote: The investm
ents set out above must com
ply with the resolution of the Shariah Advisory Council of
the SC, if applicable, and the Shariah Comm
ittee of the Fund. 5.4
IN
VESTM
ENT RESTRICTIO
NS
The Fund is also subject to the following restrictions:
Investment Exposure and Spread Lim
its Transferable Securities and M
oney Market Instrum
ents The
aggregate value
of a
Fund’s investm
ents in
transferable securities
or m
oney m
arket instrum
ents issued by any single issuer must not exceed 10%
of the Fund’s NAV
. The limit is
lowered to 5%
of the Fund’s NA
V if there are investments in:
(a) unlisted equities; and
(b) Sukuk or m
oney market instrum
ents not dealt in an Organised M
arket or issued by an unrated or non-investm
ent grade issuing body. Placem
ent of Deposits
The value of a Fund’s placement in deposits w
ith any single financial institution must not exceed
20%
of the Fund’s NA
V. The lim
it is lowered to 5%
of the Fund’s NA
V if there are deposits with
unrated or of non-investment grade deposit-taking institutions.
Derivatives
For investments in derivatives:-
a) the global exposure to the underlying assets m
ust not exceed the investments spread lim
its stipulated in the Standards of Q
ualifying CIS; and
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b) the value of a Fund’s over-the-counter (O
TC) derivative transaction with any single counter-
party must not exceed 10%
of the Fund’s NAV
where the counter-party m
ust have a minim
um
long-term rating of ‘A
’ by Standard & Poor’s.
Aggregate Value of a Fund’s Investm
ents Spread lim
it The aggregate value of a Fund’s investm
ents in transferable securities, money m
arket instruments,
deposits and
OTC
derivatives issued
by or
placed w
ith (as
the case
may
be) any
single issuer/institution m
ust not exceed 20% of the Fund’s N
AV.
Exposure limit
The aggregate value of a Fund’s investments in unlisted
equities, Sukuk or money m
arket instrum
ents not dealt in an Organised M
arket or the issuer is unrated or non-investment grade,
deposits placed with unrated or non-investm
ent grade deposit-taking institutions and OTC financial
derivatives with non-investm
ent grade or unrated counterparty must not exceed 15%
of the Fund’s N
AV.
The value of a Fund’s investments in unlisted securities m
ust not exceed 10% of the Fund’s N
AV
as stipulated in the G
uidelines. Collective Investm
ent Scheme
The value of a Fund’s investments in units/shares of each Q
ualifying CIS or non-Qualifying CIS
authorised in ACM
F Signatory countries for public offers must not exceed 10%
of the Fund’s NA
V. The value of a Fund’s investm
ents in all non-Qualifying CIS m
ust not exceed 20% of a Fund’s N
AV excluding investm
ents in units of non-Qualifying CIS w
here the investment policy of the non-
Qualifying CIS is such that the invested assets are real estate and/or real estate-related, provided
that the units of the non-Qualifying CIS are listed for quotation and traded on an organised
exchange in a ACM
F Signatory country. Spread: G
roup of Companies
Group of Com
panies The aggregate value of a Fund’s investm
ents in transferable securities, money m
arket instruments,
deposits and OTC derivatives issued by any single business group* m
ust not exceed 20% of the
Fund’s NAV.
* Single business group refers to a body, its subsidiaries, fellow
subsidiaries, holding body, and ultim
ate holding body. Investm
ent Concentration Limits
Investment Concentration Lim
its for Equities or Securities Equivalent to Equities A
Fund’s investments in equities or securities equivalent to equities m
ust not exceed 10% of the
securities issued by any single issuer. Investm
ent Concentration Limits for Sukuk and O
ther Forms of Securitised D
ebts A
Fund’s investments in Sukuk and other form
s of securitised debts must not exceed 10%
of the securities issued by any single issuer.
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B Client Services 03-2034 0800 29
Investment Concentration Lim
its for Money M
arket Instruments
A Fund’s investm
ents in money m
arket instruments m
ust not exceed 10% of the instrum
ents issued by any single issuer. Investm
ent Concentration Limits for Collective Investm
ent Schemes
The Fund’s investments in collective investm
ent schemes m
ust not exceed 25% of the units/shares
in any one collective investment schem
es. N
ote: Ratings referred to in this section 5.4 refer to those issued by Fitch, Moody’s or Standard and
Poor’s. References to “investment grade” are defined as a rating falling w
ithin the top 4 long-term
credit ratings or the top 3 short-term credit ratings provided on an international scale.
Exceptions and Exclusions Applicable to the Fund
The investments restrictions and lim
its must be com
plied with at all tim
es based on the most up-to-
date value of the Funds' property except for the following conditions:
The limits and restrictions above m
ay be increased to a maxim
um of 35%
of the Fund’s NA
V for securities and m
oney market instrum
ents issued by, or backed by, the Malaysian governm
ent or Bank N
egara Malaysia.
The holding of an investment and/or other instrum
ent by the Fund (whether by w
ay of repurchase, exchange, conversion, rights, bonus, capital reorganisation or other form
s of entitlement) m
ay exclude any entitlem
ent accruing on the investment and/or instrum
ent held. Notw
ithstanding, the entitlem
ent should not be exercised if the exercise results in the breach of any limit or restriction.
The right of convertibility, may be exercised if it results in a breach of any lim
it or restriction, provided there are justifiable reasons and prior approval of the Trustee has been obtained. N
onetheless, the EIM should, w
ithin a time fram
e of not more than one m
onth from the date of the
breach, take all necessary action to rectify the breach. A
5% allow
ance in excess of any limit or restriction m
ay be permitted w
here the limit or restriction
is breached through an appreciation or depreciation of the NA
V of the Fund (whether as a result of
an appreciation or depreciation in value of the investments or as a result of repurchase of U
nits or paym
ent made from
the Fund). The EIM should not m
ake any further acquisitions where the
relevant limit is breached, and the EIM
should within a reasonable period of not m
ore than 3 m
onths from the date of the breach take all necessary steps and actions to rectify the breach.
5.5
BASES O
F VA
LUA
TION
The M
anager and EIM w
ill ensure that all the assets of the Fund will be valued at fair value at the
end of each Business Day in com
pliance with the G
uidelines and all relevant laws as follow
s:- (a)
Listed Shariah-compliant securities w
ill be valued based on the last done market price of the
respective exchanges. (b)
Islamic deposits are valued each day by reference to the principal value of such investm
ents and the profits accrued thereon, if any, for the relevant period.
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(c) Shariah-com
pliant money m
arket instruments placed w
ith Licensed Financial Institutions are valued each day at original purchase yields. The original purchase yields refer to the original price at the point of purchase and adjusted for am
ortisation or premium
s or accretion of discounts.
(d) Sukuk are stated at the indicative market value quoted by Bond Pricing A
gency Malaysia Sdn.
Bhd. (BPAM
) registered with the SC. W
here the Manager is of the view
that the price quoted by BPA
M for a specific Sukuk differs from
the “market price/m
arket yield” by more than 20 basis
points, the Manager or EIM
may use the “m
arket price”, provided that the Manager or EIM
: (a)
records its basis for using a non-BPAM
price; (b)
obtains necessary internal approvals to use the non-BPAM
price; and (c)
keeps an audit trail of all decisions and basis for adopting the “market yield”.
“Market yield” of a particular Sukuk is usually determ
ined by industry players in the bond m
arket. There could be a time w
hen the “market yield” differs from
the price quoted by BPAM
of that particular Sukuk.
(e) O
ther Sukuk that is not quoted by BPAM
, the fair value by reference to the average indicative yield quoted by three (3) independent and reputable institutions.
(f) W
here no market values are publicly available, including in the event of a suspension in the
quotation of the securities for a period exceeding 14 days, or such shorter period as agreed by the Trustee or w
here the use of quoted market values is not appropriate, investm
ents shall be valued at fair value, as determ
ined in good faith by the Manager or EIM
, which have been
verified by the Fund’s auditor and approved by the Trustee.
(g) Shariah-com
pliant derivatives are marked to m
arket using valuation prices quoted by the Shariah-com
pliant derivatives provider. The fair values of the financial assets are valued at least once a w
eek.
(h) U
nits in listed Collective Investment Schem
es will be valued at last done price and unlisted
Collective Investment Schem
es will be valued based on the last published repurchase price.
The foreign investment w
ill be valued based on the last done prices at the close of the respective foreign exchanges. A
ll foreign investments w
ill be converted into MYR based on the bid exchange rate quoted by
Reuters at 4.00pm London tim
e, the same business day.
5.6 PO
LICY ON
GEA
RING
AN
D LIQ
UID
ASSETS
The Fund may use Islam
ic financing facilities from Licensed Financial Institutions. The aggregate
borrowings of the Fund should not exceed 10%
of the NAV at the tim
e it is incurred. Except for securities lending provided by the G
uidelines, none of the cash or investments of the Fund m
ay be lent. Further, the Fund m
ay not assume, guarantee, endorse or otherw
ise become directly or
contingently liable for or in connection with any obligation or indebtedness of any person.
There shall be at all times a level of sufficient liquid assets in the Fund to pay for the repurchase of
Units. The Fund is allow
ed to borrow cash for the purpose of m
eeting repurchase requests for
AM
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Units. H
owever the M
anager should ensure that the Fund’s cash borrowing is only on a tem
porary basis w
hich should not exceed one (1) month.
5.7 SH
ARIA
H IN
VESTM
ENTS
AM
BSVPF is a Shariah-compliant fund. The Fund w
ill invest in Shariah-compliant equities and equity
related securities, and Shariah-compliant m
oney market instrum
ents. Investm
ents 1.
Investment in M
alaysia Equity: The Fund w
ill invest based on a list of Shariah-compliant equities and equity related securities
by the Shariah Advisory Council (SA
C) of the SC or any other relevant authorities. For Initial Public O
ffering (IPO) com
panies that have yet to be determined the Shariah status by
the SAC of the SC, the Shariah Com
mittee adopts the follow
ing analysis as a temporary
measure in determ
ining its Shariah status until the SAC of the SC releases the Shariah status of
the respective companies.
1) Core business activities analysis Com
panies whose activities are not contrary to the Shariah w
ill be classified as Shariah-
compliant securities. O
n the other hand, companies w
ill be classified as Shariah non-com
pliant if they are involved in the following core business activities:
a) Conventional financial services;
b) G
ambling and gam
ing; c)
Manufacture or sale of non-halal products or related products (e.g. pork and liquor);
d) M
anufacture or sale of tobacco-based products or related products; e)
Pornography; f)
Weaponry;
g) Entertainm
ent activities that are not permitted by the Shariah; and
h) O
ther activities considered non-permissible according to the Shariah.
2) M
ixed business activities analysis For com
panies with activities com
prising both permissible and non-perm
issible elements,
the Shariah Comm
ittee applies two (2) analyses before they can be classified as Shariah-
compliant. The analyses are as follow
s: i)
Q
ualitative analysis In this analysis, the Shariah Com
mittee w
ill look into aspects of general public perception of the com
panies’ images, core businesses w
hich are considered important
and maslahah (beneficial) to the M
uslim um
mah (nation) and the country, the non-
permissible elem
ents are very small and involve m
atters like umum
balwa (com
mon
plight and difficult to avoid), ‘uruf (custom) and rights of the non-M
uslim com
munity
which are accepted by the Shariah.
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ii) Q
uantitative analysis Com
panies which passed the above qualitative analysis w
ill be further subjected to quantitative analysis. The Shariah Com
mittee deduces the follow
ing to ensure that they are low
er than the Shariah tolerable benchmarks:
a) Business activity benchm
arks The 5%
benchmark w
ould be applicable to the following business activities:
• Conventional banking;
• Conventional insurance;
• G
ambling;
• Liquor and liquor-related activities;
• Pork and pork-related activities;
• N
on-halal food and beverages; •
Shariah non-compliant entertainm
ent; •
Interest income from
conventional accounts and instruments;
• Tobacco and tobacco-related activities; and
• O
ther activities considered non-compliant according to Shariah.
The 20%
benchmark w
ould be applicable to the following activities:
• H
otel and resort operations; •
Share trading; •
Stockbroking business; •
Rental received from Shariah non-com
pliant activities; and •
Other activities considered non-com
pliant according to Shariah.
The contribution
of Shariah
non-compliant
activities to
the overall
revenue/sales/turnover/income and profit before tax of the com
panies will
be calculated
and com
pared against
the relevant
business activity
benchmarks.
b)
Financial ratio benchmarks
The financial ratios applied are as follow
s: •
Cash over total assets Cash
will
only include
cash placed
in conventional
accounts and
instruments, w
hereas cash placed in Islamic accounts and instrum
ents w
ill be excluded from the calculation.
• D
ebt over total assets D
ebt w
ill only
include interest-bearing
debt w
hereas Islam
ic debt/financing or Sukuk w
ill be excluded from the calculation.
Both ratios, which are intended to m
easure riba and riba-based elements
within a com
panies’ balance sheet, must be low
er than 33%.
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Should any of the above deductions fail to meet the benchm
arks, the Shariah Comm
ittee w
ill not accord Shariah-compliant status for the com
panies. Shariah-com
pliant money m
arket instruments:
The Shariah Comm
ittee will review
any Shariah-compliant m
oney market instrum
ents to be invested
by the
Fund based
on the
data available
at Bond
Info H
ub (w
ww
.bondinfo.bnm.gov.m
y) and
Fully A
utomated
System
for Issuing
/ Tendering
(https://fast.bnm.gov.m
y). 2.
Investment in foreign m
arkets Q
uantitative Analysis:
The Shariah Comm
ittee takes into account the following param
eters in determining the Shariah
status of the listed securities.
1) Shariah non-com
pliant income of the com
panies arising from the follow
ing business activities m
ust not exceed certain designated benchmarks*:
a) Conventional financial services;
b) G
ambling and gam
ing; c)
Manufacture or sale of non-halal products or related products (e.g. pork and liquor);
d) M
anufacture or sale of tobacco-based products or related products; e)
Weaponry;
f) Entertainm
ent activities that are not permitted by the Shariah; and
g) O
ther activities deemed non-perm
issible according to the Shariah Principles.
2) The follow
ing financial ratios of the companies m
ust not exceed certain benchmarks*:
a) Interest incom
e over total income;
b) Total debts including all interest-bearing loans/Sukuk and their respective payables such as short term
/long term debts, short term
/long term Sukuk and all Sukuk payables
divided by total assets; c)
Total sum of com
pany’s cash divided by total assets; and d)
Total account receivables including trade receivables divided by total assets.
* These benchm
arks may vary in accordance w
ith the development of Islam
ic finance and the jurisdiction of respective screening authorities or the Islam
ic indices that are being referred to. Should any of the param
eters fail to satisfy the benchmarks, the Shariah
Comm
ittee will not accord a Shariah-com
pliant status for such equities.
Qualitative A
nalysis Com
panies which have passed the above quantitative test w
ill be further subjected to qualitative screening before the equities of such com
panies can be classified as Shariah com
pliant. In this secondary analysis, the Shariah Com
mittee w
ill look into aspects of the general public perception
of the
respective com
panies’ im
age, core
businesses w
hich are
considered im
portant and maslahah (beneficial) to the M
uslim um
mah (nation) and the country, the non
permissible elem
ents are very small and involve m
atters such as umum
balwa (com
mon plight
AM
BSVPF Prospectus
34 A
MB Client Services 03-2034 0800
and difficult to avoid), ‘uruf (custom) and rights of the non-M
uslim com
munity w
hich are accepted by the Shariah.
Function of the Shariah Comm
ittee The Shariah Com
mittee w
ill:
Advise and interpret issues of Islamic nature.
Set investm
ent guidelines in compliance w
ith Shariah Principles.
Monitor the Fund’s activity to ensure adherence to the above guidelines.
Form
ally meet at least four (4) tim
es a year to review the Fund’s com
pliance towards the
Shariah Principles.
Be responsible for reviewing the com
pliance and transactions report to ensure investments are
in line with Shariah Principles.
Issue a report of the Shariah Com
mittee to the U
nit Holders w
hich shall be enclosed in the Fund’s interim
and annual reports.
Cleansing process
Wrong investm
ent This refers to a Shariah non-com
pliant investment inadvertently m
ade by the Manager. The said
investment w
ill be disposed/withdraw
n with im
mediate effect. Any gain m
ade in the form of
capital gain or dividend received during or after the disposal of the investment is to be
channeled to baitulmal or any other charitable bodies as advised by the Shariah Com
mittee. If
the disposal of the investment results in loss to the Fund, the loss is to be borne by the
Manager.
Reclassification of Shariah status Equities w
hich were earlier classified as Shariah-com
pliant securities may subsequently be
reclassified as Shariah non-compliant due to certain reasons such as changes in the com
panies’ operations. If at the tim
e the announcement is m
ade, the value of the equities held exceeds the original investm
ent cost, such non-compliant equities w
ill be liquidated. The Fund may keep any
capital gains arising from the disposal of the non-com
pliant equities made at the tim
e of the announcem
ent. H
owever,
any excess
capital gains
made
from
the disposal
after the
announcement day at a m
arket price that is higher than the closing price on the announcement
day is to be channelled to baitulmal or any other charitable bodies as advised by the Shariah
Comm
ittee.
If the market price of the said equities is below
the original investment cost, the Fund m
ay hold the non-com
pliant equities and keep dividends received during the holding period until such tim
e when the total am
ount of dividends received and the market value of the non
-compliant
equities held equal the original investment cost. A
t this stage, the Fund will dispose of the said
equities.
Purification process This refers to the purification by w
ay of payment of zakat (tithe) by M
uslims. A
MBSVPF does not
pay zakat on behalf of Muslim
Unit H
olders of AMBSVPF. Thus, M
uslim U
nit Holders are advised to
pay zakat on their own.
AM
BSVPF Prospectus
AM
B Client Services 03-2034 0800 35
6. FEES, CH
ARG
ES AN
D EXPEN
SES
6.1 D
IRECT CHA
RGES
(i)
Sales charge
Unit H
olders have to pay a sales charge upon purchasing Units in each Class. The m
aximum
sales charge of the respective Classes is as follow
s and is negotiable, subject to the discretion of the M
anager:
Class M
anager/Distribution Channel
(% of N
AV
per Unit)
Maxim
um sales charge
Repurchase charge
A-M
YR, C-MYR, B-JPY,
B-SGD
, B-USD
5.5
N
il
Illustration on how
the sales charge is calculated:
For Class A
-MYR
For Class B-SGD
1. Investment am
ount
MYR 10,000.00
SG
D 10,000.00
2. NAV per U
nit* M
YR 0.5000
SGD
0.5000
3. Sales charge 5.5%
5.5%
Units issued to U
nit Holder
= Investment am
ount
N
AV per U
nit
= MYR 10,000.00
MYR 0.5000
= 20,000 Units
= SGD
10,000.00 SG
D 0.5000
= 20,000 Units
Sales charge per Unit
= NA
V per Unit x Sales
charge (%)
= MYR 0.5000 x 5.5%
= M
YR 0.0275
= SGD
0.5000 x 5.5%
= SGD
0.0275 Total sales charge
= 20,000 Units x M
YR 0.0275 = M
YR 550.00
= 20,000 Units x SG
D 0.0275
= SGD
550.00
* During the IO
P, the NA
V per Unit is the Initial O
ffer Price.
Total sales charge is rounded up to the nearest 2 decimal points.
Please note that the above example is for illustration purposes only and does not include G
ST w
hich is payable by Unit H
olders.
AM
BSVPF Prospectus
36 A
MB Client Services 03-2034 0800
(ii) Repurchase charge
No repurchase charge is applicable for the Fund.
(iii) Transfer charge
Class Transfer charge
A-M
YR, C-MYR
MYR 25
B-USD
U
SD 25
B-SGD
SG
D 25
B-JPY JPY 1 000
(iv) Sw
itching charge
Switch out from
the following Classes to any other
fund within the A
MB Fam
ily of Funds Sw
itching charge
A-M
YR, C-MYR
MYR 25
B-JPY JPY 1 000
B-SGD
SG
D 25
B-USD
U
SD 25
(v)
Conversion charge
Convert from the follow
ing Classes to any other Class Conversion charge
A-M
YR, C-MYR
MYR 25
B-JPY JPY 1 000
B-SGD
SG
D 25
B-USD
U
SD 25
(vi) O
ther administrative charges
In addition to the charges expressly allowed to be charged directly by the M
anager and/or the Trustee, the U
nit Holder m
ay be required to pay a charge as allowed by the D
eed, where
applicable in respect of: a)
any document supplied to the U
nit Holder at the U
nit Holder’s request;
b) bank charges, courier charges and any other relevant charges incurred for repurchase of U
nits; or c)
any act of administrative nature carried out for the U
nit Holder at the U
nit Holder’s
request. The above charges do not include G
ST which is payable by the U
nit Holders.
AM
BSVPF Prospectus
AM
B Client Services 03-2034 0800 37
6.2 IN
DIRECT FEES
Annual m
anagement fee &
annual trustee fee
Class A
nnual managem
ent fee Current year charge
(percentage of NA
V) (%
)* A
nnual trustee fee
A-M
YR 1.50
Up to 0.06%
per annum of the N
AV of the Fund. The N
AV is a gross N
AV, before deducting annual m
anagement fee and trustee fee for the day.
C-MYR
1.30
B-JPY 1.50
B-SGD
1.50
B-USD
1.50
Note: * Each Class is charged at the above m
entioned rates per annum respectively. The annual
managem
ent fee is calculated and accrued on a daily basis before deducting the annual m
anagement fee and trustee fee for the day. The annual m
anagement fee shall be
rounded to the nearest two (2) decim
al points. The above fees do not include G
ST which is payable by the Fund.
6.3 FU
ND
’S EXPENSES
The managem
ent fee and trustee fee, the auditor’s fees and other relevant professional fees, the costs of distribution of annual and interim
reports, tax vouchers, distribution warrants, cost of
modification of D
eed and other notices to Unit H
olders as well as expenses that are directly related
and necessary to the business of the Fund as set out in the Deed (including any applicable G
ST) shall be paid out of the Fund. These costs are already factored into the N
AV per U
nit. A
ll the Fund’s expenses are apportioned accordingly to each Class based on the multiclass ratio on a
daily basis. 6.4
POLICY O
N BRO
KERAG
E REBATES A
ND
SOFT CO
MM
ISSION
S It is the policy of the M
anager, with consent from
the Trustee to channel all rebates, if any, received from
brokers and dealers to the Fund. The M
anager will not receive any soft com
missions from
brokers, and/or any related body corporate in relation to its investm
ent of AM
BSVPF. H
owever, the EIM
will subscribe but not lim
ited to the goods and services which are dem
onstrably beneficial to U
nit Holders such as financial w
ire services and stock quotation system incidental to
investment of A
MBSVPF.
There are fees and charges involved and investors are advised to consider them
before investing in the Fund.
AM
BSVPF Prospectus
38 A
MB Client Services 03-2034 0800
7. TRA
NSA
CTION
INFO
RMA
TION
7.1
PRICING
The M
anager adopts a single pricing policy, i.e. the selling price and the repurchase price is the NAV
per Unit of the respective Class. H
owever, the selling price is fixed at the Initial O
ffer Price of the respective Class during the Initial O
ffer Period of that Class. 1.
Valuation of U
nits Calculation of N
AV
and NA
V per U
nit The valuation of U
nits is based on the NAV. D
ue to the different time zone of the countries, the
NA
V is calculated after the end of the Business Day and at the close of the respective exchanges.
The daily NA
V per Unit w
ill be published on the next Business Day after the close of the respective
exchanges (two (2) preceeding days).
The NA
V is determined by deducting the value of the Fund’s liabilities from
the value of the Fund’s assets at a Valuation Point. The N
AV is in the Base Currency.
The NA
V per Unit of each Class is com
puted on Forward Pricing basis and is determ
ined by dividing N
AV attributed to each Class based on m
ulticlass ratio by the number of U
nits in Circulation of that Class. For non-M
YR-denominated Classes, the respective N
AV per U
nit will be converted to the currency
of the respective Classes using the prevailing exchange rate. M
ulticlass ratio (MCR)
MCR is the apportionm
ent of the NA
V to each Class over the NAV before incom
e and expenses, for the day. The M
CR is expressed as a ratio and calculated as a percentage. This percentage is used to apportion daily incom
e or expenses for the respective Class. Illustration of com
putation of the NA
V per U
nit at each Valuation Point:
Assum
ing: D
ay 1
Last day of IO
P D
ay 2
Day after IO
P Initial O
ffer Price for Class A-M
YR
M
YR 0.5000 Initial O
ffer Price for Class B-SGD
SG
D 0.5000
Investment am
ount for Class A-M
YR
M
YR 7,000,000 Investm
ent amount for Class B-SG
D
SGD
1,000,000
AM
BSVPF Prospectus
AM
B Client Services 03-2034 0800 39
Day 1 – Last day of IO
P
Fund
Class A-M
YR Class B-SG
D
Initial Offer Price for D
ay 1 -
MYR 0.5000
SGD
0.5000
Net A
sset Value M
YR 9,500,000 M
YR 7,000,000 SG
D 1,000,000
Units in Circulation
16,000,000 14,000,000
2,000,000
Exchange rate 2.5000
Creation for Day 1 (in M
YR) 9,500,000
7,000,000 (1)2,500,000
(1) Translation of the creation of Units for Class B-SG
D is by taking the creation am
ount in SGD
times
the exchange rate; ( SGD
1,000,000 x 2.5000 = MYR 2,500,000)
Day 2 – V
aluation after IOP
Multiclass ratio (M
CR) computation:
Class A-M
YR Class B-SG
D
(M
YR) (M
YR) Creation for D
ay 1 (in MYR)
x 100 7,000,000 x 100
2,500,000 x 100 N
AV for D
ay 1 9,500,000
9,500,000
= 73.68%
= 26.32%
Fund
(MYR)
Class A-M
YR (M
YR) Class B-SG
D
(MYR)
NA
V for Day 2
9,500,000 7,000,000
2,500,000
% M
CR 100%
73.68%
26.32%
Add: Incom
e
5,000 (2)3,684
(2)1,316
Less: Expenses
(2,000) (2) (1,474)
(2) (526)
NA
V before managem
ent and trustee fee for D
ay 1 9,503,000
7,002,210 2,500,790
Less: Managem
ent fee
1.5%
p.a 1.5%
p.a
(391) (288)
(103) Less: Trustee fee
0.06%
p.a 0.06%
p.a
(16) (12)
(4)
NA
V for Day 2
9,502,593 7,001,910
2,500,683
Units in Circulation for D
ay 2 16,000,000
14,000,000 2,000,000
NA
V per U
nit (in MYR)
0.5001
1.2503 Exchange rate for D
ay 2
2.4998
NA
V per Unit for D
ay 2
MYR 0.5001
SGD
0.5002
AM
BSVPF Prospectus
40 A
MB Client Services 03-2034 0800
(2)Apportionm
ent based on MCR is as follow
s:
Class A-M
YR Class B-SG
D
(M
YR) (M
YR) (M
YR)
Add: Incom
e 5,000
MCR x Incom
e = Incom
e for Class A-M
YR M
CR x Income
= Income for Class B-SG
D
= 73.68%
x MYR 5,000
= MYR 3,684
= 26.32%
x MYR 5,000
= MYR 1,316
Less: Expenses (2,000)
MCR x Expenses
= Expenses for Class A-MYR
MCR x Expenses
= Expenses for Class B-SGD
= 73.68%
x MYR 2,000
= MYR 1,474
= 26.32%
x MYR 2,000
= MYR 526
NA
V per Unit is rounded to 4 decim
al places Please note the above is for illustration purpose only. 2.
Purchase and repurchase of Units
(a) Purchase of Units
Units can be purchased at A
MB’s office or at any D
istribution Branches. The Investment Application
Form, the Fund’s prospectus and product highlights sheet (PH
S) can also be obtained from these
offices. Completed docum
entation accompanied by the supporting docum
ents such as copies of identity card, passport and bank rem
ittance will be processed accordingly.
During the IO
P, the purchase price for all Classes will be the Initial O
ffer Price. After the IO
P, the purchase price w
ill be based on the NAV per U
nit of the respective Classes.
Illustration of com
putation for purchase in AM
BSVPF:
Assum
ing:
Class A-M
YR
(i) A
mount invested by U
nit Holder
MYR 10,000.00
(ii) N
AV per U
nit M
YR 0.5000
(iii) Sales charge of a Class 5.5%
of NAV per U
nit
(iv) GST
6.0% of sales charge
Units issued to U
nit Holder
= Investment am
ount N
AV per Unit
= M
YR 10,000.00 M
YR 0.5000
= 20,000 U
nits
Total amount of sales charge incurred
of a Class = U
nit issued to Unit H
older x Sales charge
= 20,000 Units x (5.5%
x MYR 0.5000)
= 20,000 U
nits x MYR 0.0275
= M
YR 550.00
AM
BSVPF Prospectus
AM
B Client Services 03-2034 0800 41
GST: Total sales charge x 6%
= M
YR 550.00 x 6%
= M
YR 33.00
Total amount payable by U
nit Holder
= Investment am
ount + Sales charge + GST
= M
YR 10,000.00 + MYR 550.00 + M
YR 33.00
= M
YR 10,583.00 Total am
ount payable by Unit H
older is rounded to 2 decimal places.
Please note the above example is for illustration purpose only.
(b)
Repurchase of Units
Unit H
olders can make repurchase requests at AM
B’s office or at Distribution Branches after the
end of IOP. There is a standard repurchase form
that is to be completed by U
nit Holders before the
transaction can be processed successfully. A
ny repurchase would be based on the N
AV per Unit of the respective Class.
The N
AV
per U
nit of
each Class
of AM
BSVPF is
available on
our w
ebsite daily
(ww
w.am
bmutual.com
.my), A
MB’s office and D
istribution Branches. N
o repurchase charge is applicable for the Fund. Illustration of com
putation for repurchase of AM
BSVPF:
Assum
ing a Unit H
older makes a repurchase of M
YR 10 000 and SGD
10 000 he would receive
proceeds of repurchase as follows:
Class A
-MYR
Class B-SGD
Repurchase am
ount Less : Repurchase charge
MYR 10 000
Nil
SGD
10 000 N
il
Nett am
ount payable to Unit H
older M
YR 10, 000 SG
D 10 000
Nett repurchase proceeds of a Class paid to U
nit Holder is rounded to 2 decim
al places. Please note the above exam
ple is for illustration purpose only. Incorrect pricing If there is any incorrect calculation of N
AV per Unit, the M
anager will take im
mediate rem
edial action to rectify the error. The M
anager’s remedial action w
ill extend to the reimbursem
ent of m
oney to the Unit H
olders if the error is at or above the threshold of 0.5% of the N
AV per Unit
unless the impact on the individual U
nit Holder’s account is equivalent to M
YR 10.00 or less in absolute am
ount, in which case no reim
bursement is required.
The Manager w
ill ensure that the prices forwarded to the press for publication are accurate.
How
ever, the Manager cannot be liable for any error in prices finally published in the press.
Investors may contact AM
B or any Distribution Channel to further confirm
the Unit prices.
There are fees and charges involved and investors are advised to consider the fees and charges before investing in the Fund.
AM
BSVPF Prospectus
42 A
MB Client Services 03-2034 0800
7.2
TRAN
SACTIO
N D
ETAILS O
N PU
RCHA
SE OF U
NITS
The following transaction details are applicable for transactions direct w
ith AMB. Kindly contact
AM
B or the relevant Distribution Channel on transaction details through D
istribution Channel. 1.
Transaction details on initial investm
ent Step 1 - Eligibility i.
Individual investors investing in single or joint names (jointholders) of up to three (3) nam
es inclusive of the principal holder. Persons under the age of 18 are to jointly hold the investm
ent w
ith at least one (1) adult. ii.
Corporate investors
which
include registered
businesses, corporate
entities, trusts,
co-operatives and foundations. Step 2 - Form
s to be completed
i. Investm
ent Application Form
; ii. Pre-Investm
ent Form; and
iii. Investor Suitability Assessm
ent Form.
Step 3 – Docum
ents needed i.
Individual investor: a)
Photocopy of National Registration Identity Card (N
RIC) or passport; b)
Photocopy of NRIC or passport of joint applicants (if any);
c) Photocopy of birth certificate (if joint applicant is a m
inor); and d)
Details of foreign currency account denom
inated in the relevant currency (For investments
in Classes B-JPY, B-SGD
and B-USD
only). ii. Corporate investor:
a) A
certified true copy of the mem
orandum and articles of association or its equivalent;
b) A
certified true copy of form 9, 24 and 49 or its equivalent;
c) A
certified true copy of a board resolution, or its equivalent, approving investments in the
respective Class; d)
List of authorised signatories and their specimen signatures to effect any instructions
pertaining to the Fund if not mentioned in the board resolution or its equivalent;
e) A
ny other documents as m
ay be required; and f)
Details of foreign currency account denom
inated in the relevant currency (For investments
in Classes B-JPY, B-SGD
and B-USD
only).
Step 4 – Payment m
ethod Subscribe an am
ount at least meeting the m
inimum
initial investment requirem
ents of the respective Classes:
Class M
inimum
initial investment
(inclusive of sales charge) A
-MYR
MYR 500
C-MYR
MYR 1 M
illion B-JPY
JPY 200 000 B-SG
D
SGD
500 B-U
SD
USD
500
AM
BSVPF Prospectus
AM
B Client Services 03-2034 0800 43
Investors are advised not to make paym
ent in cash to any individual agent when purchasing
Units of the Fund.
i. Via telegraphic transfer, bank transfer or online transfer:
A
pplicants m
ay transfer
the subscription
proceeds directly
into A
MB's
bank account
via telegraphic transfer, bank transfer or online transfer. Please include applicant's nam
e in the transaction description, w
here applicable, for reference. A
ll charges incurred to be borne by Unit H
olders.
ii. Via cheque, bank draft or money order:
Paym
ents can be made using cheque, bank draft or m
oney order made payable to: "A
manah
Mutual Berhad".
Applicants
are to
write
their nam
e and
NRIC
number,
passport num
ber or
institutional registration num
ber at the back of the cheque, draft or money order. A
pplication shall be processed based on the nett am
ount received. Where paym
ent is by cheque, the cheque must
be issued by the investor. Payments by third party cheque m
ust be accompanied w
ith further confirm
ation that the issuer is aware of the paym
ent.
In the case of bank draft or m
oney order, a copy of the application for the bank draft or money
order as approved by the relevant bank/post office must be subm
itted with the bank draft or
money order.
A
pplicants may either m
ail the application with com
plete documentation and paym
ent to AM
B or com
e personally to AM
B. If we do not receive com
plete documents w
ith the payment, w
e reserve the right to reject the application. If applicant deposits paym
ent into AMB's bank account and does
not notify or provide us with the com
plete documents, A
MB reserves the right to reject the
application and hold such amount until claim
ed. The M
anager has the discretion to reject any application for Units w
ithout assigning any reasons. A
n investor is recognised as a registered Unit H
older by AMB upon receipt of paym
ent (in AMB’s
account) together with com
pleted application form and other relevant supporting docum
ents. The M
anager will then issue a letter confirm
ing the investment w
ithin 14 days of receipt of the aforesaid docum
ents provided that the application monies have cleared.
AM
BSVPF Prospectus
44 A
MB Client Services 03-2034 0800
Investors are advised not to make paym
ent in cash to any individual agent when purchasing
Units of the Fund.
2. Transaction details on additional investm
ent Step 1 – D
ocument(s) to be com
pleted Investm
ent Application Form
or any other documents.
Step 2 – Payment M
ethod Subscribe an am
ount at least meeting the m
inimum
additional investment requirem
ents of the respective Classes:
Class M
inimum
additional investment
(inclusive of sales charge) A
-MYR
MYR 100
C-MYR
MYR 5,000
B-JPY JPY 100 000
B-SGD
SG
D 100
B-USD
U
SD 100
Payment for additional investm
ent can be made by the sam
e mode of paym
ent as Step 4 for initial investm
ent. The M
anager has the discretion to reject any application for Units w
ithout assigning any reasons. The additional investm
ent is recognised by the Manager upon its receipt of paym
ent together with
the relevant supporting document. The M
anager will then issue a letter confirm
ing the investment
within 14 days upon receipt of the aforesaid docum
ents provided that the application monies have
cleared. 3.
Other relevant inform
ation on investment
Unit pricing &
cut-off time for purchase of U
nits W
hen you invest in the Fund you are issued with U
nits. These Units represent your holding in the
Fund. The number of U
nits that you will receive is determ
ined by NAV per U
nit of the respective Classes. A
pplications to purchase Units w
ill be processed on the same Business D
ay if received by 2.30 p.m
. with cleared paym
ent. Cooling-off Period The Cooling-off Period of the Fund is w
ithin six (6) Business Days com
mencing from
the date the M
anager receives the completed application to purchase U
nits. Cooling-off Right A
Cooling-off Right refers to the right of the Unit H
older to obtain a refund of the investment in the
Class including the sales charge and GST, if any, if requested by the U
nit Holder w
ithin the Cooling-off Period. A
Cooling-off Right is only given to an investor, other than those listed below, w
ho is investing in any Class w
ithin the AMB Fam
ily of Funds for the first time:
(a) a corporation or institution;
(b) staff of the M
anager; and (c)
persons registered to deal in unit trusts of the Manager.
AM
BSVPF Prospectus
AM
B Client Services 03-2034 0800 45
The refund for every Unit held by the investor pursuant to the exercise of the Cooling-off Right shall
be the sum of:
(a) the N
AV per U
nit on the day the Units w
ere first purchased; and (b)
the sales charge per Unit and G
ST, if any, originally imposed on the day the U
nits were
purchased. Exam
ple : 1 A
pril 2015 :
Investor purchases Units.
3 April 2015
: Investor exercises Cooling-off Right by submitting a request for a refund on the
investment (w
ithin the Cooling-off Period). The cooling-off am
ount/proceeds due to the investor is computed based on the N
AV per U
nit at the close of business on 1 April 2015 including the sales charge and G
ST, if any. W
hen a Cooling-off Right is exercised, the money w
ill be refunded to the applicant within 10 days
of receipt of the notice or exercise of Cooling-off Right by the Manager. The request to exercise
your Cooling-off Right must be subm
itted either to the Manager or any D
istribution Channel within
the Cooling-off Period. 7.3
TRAN
SACTIO
N D
ETAILS O
N REPU
RCHA
SE OF U
NITS
Repurchase can be made in part or entirety at any tim
e after the end of IOP by com
pleting the repurchase form
, which can be obtained at AM
B or any Distribution Channel. Repurchase request
must be m
ade in terms of U
nits due to Forward Pricing policy.
There is no restriction on frequency of repurchase and number of U
nits a Unit H
older can repurchase subject to the applicable m
inimum
balance requirement.
Minim
um repurchase am
ount There is no m
inimum
repurchase amount im
posed on a Unit H
older. Partial repurchase of Units is
permitted provided the m
inimum
balance of Units of the respective Classes is m
aintained in Unit
Holders’ account.
Class M
inimum
balance requirement
A-M
YR 100 U
nits C-M
YR 100 U
nits B-JPY
1 Unit
B-SGD
100 U
nits B-U
SD
100 Units
Forms to be com
pleted Com
pleted repurchase form or any other docum
ents as may be required.
Docum
ents needed (Individual investors only) a)
Photocopy of NRIC or passport (if necessary);
b) Photocopy of N
RIC or passport of joint applicants (if any or if necessary); and c)
Photocopy of NRIC or birth certificate (if joint applicant is a m
inor) (if any or if necessary).
AM
BSVPF Prospectus
46 A
MB Client Services 03-2034 0800
Payment for repurchase of U
nits (i)
Transfer to a bank account
Payment of the nett repurchase proceeds w
ill be made via bank transfer to U
nit Holders’
respective foreign currency account for Classes denominated in currencies other than M
YR. U
nit Holders are required to provide AM
B with the relevant bank account details in order for
AM
B to proceed with the paym
ent for repurchase. Unit H
olders may give A
MB an instruction in
writing to transfer the repurchase proceeds to U
nit Holders' bank account (local or overseas)
held in Unit H
olders' own nam
e. All bank charges for the transfer w
ill be borne by the Unit
Holders. The charge w
ill be deducted from the repurchase am
ount before being paid to the U
nit Holders’ relevant bank account.
It is possible for delays in the banking system to occur w
hich are beyond our control. If the proceeds cannot be transferred, AM
B may draw
a cheque payable to the Unit H
olders. (ii)
By cheque (For Classes denominated in M
YR only)
Unit H
olders will receive paym
ent of the nett repurchase proceeds by cheque payable to the applicable U
nit Holder's and/or jointholders' nam
es only. The cheques will be m
ailed to the address of the U
nit Holders based on the application form
or as may be subsequently notified
in writing to the M
anager. A
ny charges incurred such as charges for outstation cheque will be borne by the U
nit Holders.
Note : N
o repurchase proceeds will be paid in cash under any circum
stances. U
nit pricing & cut-off tim
e for repurchase of Units
Completed application to repurchase U
nits will be processed on the sam
e Business Day if AM
B receives it by 2.30 p.m
. and the Repurchase Price of Units w
ill be based on the NAV per U
nit at the end of the sam
e Business Day. A
ny application deemed to have been received after this cut-off tim
e w
ill be considered as being transacted on the next Business Day and w
ould be subjected to the NAV
per Unit of the next Business D
ay. The M
anager will pay the nett repurchase proceeds to the U
nit Holder w
ithin 7 Business Days or 10
days from the receipt of the com
pleted application to repurchase Units, w
hichever is earlier. 7.4
TRAN
SFER OF U
NITS
A U
nit Holder m
ay fully or partially transfer his Units in any Class to any other U
nit Holder in the
same Class. For partial transfer, U
nits in the transferor’s or transferee’s account must not be less
than the minim
um balance requirem
ent. Every transfer form m
ust be accompanied by such
evidence as the Manager m
ay require of proof of title of the transferor and is subject to a transfer charge. For transfers done w
ith Distribution Channels, kindly refer to the relevant D
istribution Channel.
AM
BSVPF Prospectus
AM
B Client Services 03-2034 0800 47
Below are the requirem
ents for transfer of Units:
(a) Transfer from
individual investor’s account (single or joint applicants) i.
Completed transfer form
; ii.
Investment Suitability A
ssessment form
iii.
A copy of N
RIC or passport of transferor and transferee; and iv.
Payment or a copy of proof of paym
ent of transfer charge.
(b) Transfer from
a deceased individual investor’s account i.
Completed transm
ission form;
ii. Certified copy of grant of probate or letter of adm
inistration; iii.
Certified copy of death certificate; iv.
Indemnity letter to be signed by adm
inistrator or executor and endorsed by the com
missioner for oaths (affixed w
ith MYR 10 stam
p duty); v.
A copy of N
RIC or passport of transferee; vi.
Pre-Investment Form
and Investor Suitability Assessm
ent Form (provided that the
transferee is a new U
nit Holder); and
vii. Paym
ent or a copy of proof of payment of transfer charge.
(c)
Transfer from a corporate investor’s account
i. Com
pleted transfer form;
ii. Board resolution or any other relevant authorisation approving the transfer;
iii. Certified copy of the com
pany’s mem
orandum &
articles of association, form 9,
form 49, form
24 and board resolution (if the transferee is a corporate investor); iv.
A copy of the N
RIC/passport of the transferee (if individual); and v.
Payment or a copy of proof of paym
ent of transfer charge.
The Manager w
ill then issue a transaction statement confirm
ing the transaction within 14 days
upon receipt of the required documents.
7.5 SW
ITCHIN
G
Switching is a request to w
ithdraw all or a specified part of your investm
ent in the Fund, at NAV
applicable to Units in that Fund at the tim
e of the switch, and use the proceeds to buy U
nits in any other AM
B Family of Funds.
To switch betw
een the AM
B Family of Funds, sim
ply complete a sw
itching form at A
MB or any
Distribution Channel (Please refer to section 6.1 (iv) on page 36 for sw
itching charges). D
istribution units of conventional funds within the A
MB Fam
ily of Funds cannot be switched to the
Fund as it is not permitted from
the Shariah perspective. Only the principal am
ount of conventional funds is allow
ed to be switched to the Fund.
The Manager has the discretion to reject any sw
itching request: i.
that it regards as disruptive to the efficient portfolio managem
ent; or ii. if deem
ed by the Manager to be contrary to the best interest of the Fund.
AM
BSVPF Prospectus
48 A
MB Client Services 03-2034 0800
7.6 CO
NV
ERSION
Conversion is a request to use all or a part of your investm
ent in any Class for Units in another Class
at the applicable NA
V per Unit (Please refer to section 6.1 (v) on page 36 for conversion charges).
7.7 DISTRIBU
TION
CHA
NN
EL(S) The D
istribution Channels distributing the Fund are listed in section 17 on page 82. 7.8
INCO
ME D
ISTRIBUTIO
N PO
LICY It is not the m
ain objective of the Fund to distribute income as the m
ain focus of the Fund is to secure capital grow
th in line with the perform
ance of the Fund’s benchmark.
(a)
Distribution of incom
e for Classes A-M
YR and C-MYR
Income distribution, if any, is declared at the end of the financial year of the Fund or for any
specified period, as may be determ
ined by the Manager in consultation w
ith the Trustee. Any distribution w
ill be at the discretion of the Manager, w
hich if at all possible is incidental to carrying out the investm
ent function in accordance with the objective and investm
ent strategy of the Fund. The distribution of the Fund w
ill vary depending on its performance and
prevailing economic conditions.
It is intended that distributions to U
nit Holders, if any, w
ill be based on the number of U
nits held by U
nit Holders as at the date that the incom
e is declared.
Income distribution, if any, w
ill be paid in the currency in which the Classes are denom
inated in. A
ny distribution will be autom
atically reinvested as additional Units in that Class based on
the NAV per U
nit of the Class at the close of the first Business Day im
mediately follow
ing the distribution date. N
o sales charge will be im
posed for reinvestment of distribution U
nits. (b)
A
ccumulation U
nits for Classes B-JPY, B-SGD
and B-USD
For accum
ulation Units, there w
ill be no distributions made to the U
nit Holder. H
owever, the
value to the Unit H
older’s investment m
ay increase as reflected in the increase in the NAV per
Unit (subject to the perform
ance of the Fund) i.e. gains, if any, from the Fund’s investm
ent is retained and accum
ulated which w
ill be reflected by a higher NAV per U
nit and vice versa. The follow
ing illustrates the difference between Classes w
ith income distribution policy and Classes
with accum
ulation Units policy:
Class w
ith income
distribution policy Class w
ith accumulation
Units policy
Assum
ing:
Initial O
ffer Price (MYR)
0.5000 0.5000
No. of U
nits held by Unit H
older 10,000 U
nits 10,000 U
nits Value of investm
ent (MYR)
5,000.00 5,000.00
N
AV per U
nit as at 31 May 2015 (M
YR) 1.0000
1.0000
AM
BSVPF Prospectus
AM
B Client Services 03-2034 0800 49
Class w
ith income
distribution policy Class w
ith accumulation
Units policy
Distribution (sen) per U
nit declared on 31 May
2015
5.00
N/A
NA
V per U
nit after distribution (MYR) (if any)
= NA
V per Unit before distribution
– distribution (sen) per Unit
1.0000 - 0.0500 = 0.9500
N/A
Total income distribution received (M
YR) = D
istribution (sen) per Unit
x no. of units held by Unit H
older as at incom
e distribution date (31 May 2015)
0.0500 x 10,000 U
nits = 500.00
N
/A
NA
V per U
nit on the next Business Day (1 June
2015) (MYR)*
Reinvestment U
nits received (rounded to 4 decim
al places) = Incom
e distribution received N
AV per Unit on 1 June 2015
0.9600 500.00 0.9600
= 520.8333 Units
1.0100 Total no. of U
nits held on 1 June 2015 after reinvestm
ent date ** 10,000 + 520.83333
= 10,520.83
10,000
Value of investm
ent held on 1 June 2015 after reinvestm
ent date (MYR)**
= NA
V per Unit x no. of U
nits held
10,520.83 x 0.9600
= 10,100.00
10,000 U
nits x 1.0100 = 10,100.00
* A
ssuming there is an increase in N
AV per U
nit, if any. **
Assum
ing there is no purchase or repurchase of units on 1 June 2015. Value of U
nit Holder’s investm
ent is rounded to 2 decimal places.
Please note the above is for illustration purpose only. 7.9 PO
LICY ON
UN
CLAIM
ED M
ON
IES A
ny amount of m
onies payable to Unit H
olders which rem
ain unclaimed for such period of tim
e as prescribed by the U
nclaimed M
onies Act 1965 after the date for paym
ent shall be paid by the M
anager to the consolidated trust account in accordance with the provisions of the U
nclaimed
Monies A
ct 1965.
AM
BSVPF Prospectus
50 A
MB Client Services 03-2034 0800
8. TH
E MA
NA
GEM
ENT A
ND
AD
MIN
ISTRATIO
N O
F THE FU
ND
8.1
CORPO
RATE PRO
FILE OF TH
E MA
NA
GER
AM
B is a unit trust managem
ent company regulated by the SC. AM
B is a subsidiary of ASN
B since 2006 and is a m
ember of the PN
B group of companies. It w
as incorporated on 22 March 1990. It has
an authorised capital of MYR5 m
illion and a paid-up capital of MYR5 m
illion. As at LPD
, AM
B has total assets under m
anagement of M
YR2.31 billion. A
MB is in the business of developing and prom
oting unit trust funds and its objective is to provide investors w
ith an opportunity to participate in good performing funds w
ith diversified investments
such as
equities, bonds,
short-term
money
market
instruments
and other
capital m
arket instrum
ents. AM
B has a 25-year track record in managing unit trust funds in M
alaysia. A
s at LPD, AM
B manages 15 funds under four (4) categories of funds, nam
ely equity fund (7 funds), bond fund (4 funds), balanced fund (3 funds) and m
oney market fund (1 fund). There are currently
six (6) external investment m
anagers. A
MB staff strength
AM
B has a total strength of 49 experienced personnel in unit trust business, comprising 40
executives and
nine (9)
non-executives as
at LPD
, and
is responsible
for the
day-to-day m
anagement of the Fund in accordance w
ith the provisions of the Deed. Full details of the
Manager’s duties are set out in the D
eed, which is available for inspection at our business office.
Roles, duties and responsibilities of AM
B The general functions, duties and responsibilities of the M
anager include, but are not limited to, the
following:
1. Carry out and conduct its unit trust business in a proper and diligent m
anner and manage and
administer the Fund in a proper, diligent and efficient m
anner in accordance with the D
eed, the A
ct, the Guidelines and other applicable law
s at all times and acceptable and efficacious
business practice within the unit trust industry;
2. O
bserve high standards of integrity and fair dealing in managing the Fund to the best and
exclusive interest of the Unit H
olders; 3.
Act w
ith due care, skill and diligence in managing the Fund, and effectively em
ploy the resources and procedures necessary for the proper perform
ance of the Fund; 4.
Not in any m
anner make any inequitable or illegal profit from
its fiduciary position; 5.
Ensure that the Deed and this prospectus are at all tim
es in compliance w
ith all relevant laws;
6. From
time to tim
e modify or propose such m
odifications to the Deed and/or the prospectus as
may be necessary or desirable in the interests of the U
nit Holders;
7. Take all necessary steps to ensure that the investm
ents and other assets of the Fund are adequately protected and properly segregated; and
8. U
nless otherwise specified in w
riting by the SC, ensure that the Fund has, at all times, an
appointed trustee.
AM
BSVPF Prospectus
AM
B Client Services 03-2034 0800 51
8.2 PA
ST PERFORM
AN
CE OF TH
E MA
NA
GER
The following is the sum
mary of the past perform
ance of the Manager based on the audited
financial statements for the past three (3) financial years ended 31 D
ecember:
2014
2013 2012
M
YR’000 M
YR’000 M
YR’000 Paid up capital
5,000 5,000
5,000 Shareholders' funds
50,222 75,450
74,968 O
perating revenue 46,375
50,029 46,602
Pre-tax profit 6,329
17,495 24,222
Profit after tax 4,852
13,116 18,230
8.3 PRO
FILE OF TH
E BOA
RD O
F DIRECTO
RS OF TH
E MA
NA
GER
The M
anager The M
anager has an experienced board of directors, several of whom
have background in financial m
arkets. They are responsible for overseeing the activities of the Manager and the establishm
ent of the Fund’s policies. Board m
eetings are held formally at least four (4) tim
es a year and more
frequently should circumstances require.
There are five (5) mem
bers on the board of directors including two (2) independent directors.
Board of directors Tun A
hmad Sarji bin A
bdul Ham
id (Chairman)
(Non-Executive/N
on-Independent) Tun Ahm
ad Sarji bin Abdul Ham
id was appointed as a D
irector of AM
B on 30 Novem
ber 2006, by virtue of his position as the Chairm
an of PNB, the holding com
pany of ASN
B. Prior to his appointm
ent as the Chairman of PN
B, Tun Ahm
ad Sarji was the Chief Secretary to the G
overnment
from
1990 to
1996. H
e w
as the
President of
the Com
monw
ealth A
ssociation for
Public A
dministration and M
anagement, from
1996 to 1998. He w
as also the Chairman of the Institute of
Islamic U
nderstanding Malaysia (1992-2009).
He w
as conferred by the government the "Tokoh M
aal Hijrah" for the Islam
ic year 1420 (1999) and the D
irector of the Year Aw
ard by the Malaysian Institute of D
irectors in 1999. Tun Ahm
ad Sarji also represents the PN
B Group as chairm
an of several other companies. In 2012, he w
as conferred by the Europe Business A
ssembly the Q
ueen Victoria Comm
emorative M
edal. Tun A
hmad Sarji is a graduate of the U
niversity of Malaya, the H
arvard University of the U
nited States of A
merica, and the Institute of Social Studies, The H
ague, Netherlands. H
e was conferred
the Honorary D
egree of Doctor of Science (M
anagement) by U
niversiti Utara M
alaysia, Doctor of
Business Adm
inistration by the Nottingham
-Trent University, the U
nited Kingdom, D
octor of Letters by the U
niversiti Malaysia Saraw
ak, Doctor of M
anagement by the International Islam
ic University
Malaysia and D
octor of Managem
ent by the University M
alaysia Perlis.
AM
BSVPF Prospectus
52 A
MB Client Services 03-2034 0800
He w
as appointed Chairman of the Second N
ational Economic Consultative Council on 4 August
1999. Tun Ahm
ad Sarji is a mem
ber of the Board of Trustees, Oxford Centre for Islam
ic Studies and the A
sian Institute of Managem
ent, Manila, the Philippines, and joint-Chairm
an, Malaysia Centre for
Comm
onwealth Studies, Cam
bridge, the United Kingdom
. Tun Ahm
ad Sarji sits on the Board of Directors A
SNB and Pelaburan H
artanah Nasional Berhad
(PHN
B), both of which are under the PN
B group of companies. In addition, he is an investm
ent com
mittee m
ember for all funds m
anaged by ASN
B except Am
anah Saham W
awasan 2020.
Tan Sri Dato' Sri H
amad Kam
a Piah bin Che Othm
an (N
on executive/Non-independent)
Tan Sri Dato' Sri H
amad Kam
a Piah bin Che Othm
an was appointed as a D
irector of AMB on
30 Novem
ber 2006. On 26 February 2002, Tan Sri D
ato' Sri Ham
ad Kama Piah w
as appointed as the G
roup Managing D
irector/Group Chief Executive of PN
B, and subsequently renamed President and
Group Chief Executive. Tan Sri D
ato' Sri Ham
ad Kama Piah has been w
ith PNB since 1979. Prior to
his present appointment, Tan Sri D
ato’ Sri Ham
ad Kama Piah held various senior positions at PN
B. Tan Sri D
ato' Sri Ham
ad Kama Piah sits on the board of directors of a num
ber of Malaysian public
and private companies. A
graduate of Universiti Teknologi M
ARA
, Tan Sri Dato' Sri H
amad Kam
a Piah also holds an H
onorary Doctorate in Business A
dministration from
Universiti Tenaga N
asional, M
alaysia and Masters D
egree from Sw
ansea University, U
nited Kingdom. Tan Sri D
ato' Sri Ham
ad Kam
a Piah is also a Senior Fellow of the Financial Services Institute of A
ustralasia, a Certified Financial Planner w
ith the Financial Planning Association of Malaysia and a Registered Financial
Planner with the M
alaysia Financial Planning Council.
Tan Sri Dato' D
r. Wan M
ohd. Zahid bin Mohd. N
oordin (N
on-executive/Independent) Tan Sri D
ato' Dr. W
an Mohd. Zahid bin M
ohd. Noordin w
as appointed as a Director of A
MB on 30
Novem
ber 2006, and as a mem
ber of the investment com
mittee for all the funds m
anaged by AMB
on 9 February 2007. Tan Sri D
ato' Dr. W
an Mohd. Zahid holds a Bachelor of A
rts Degree from
the University of M
alaya, M
aster of Arts D
egree from Stanford U
niversity, Palo Alto, California and Ph.D
. from the U
niversity of California, Berkeley, California. H
e also attended the Advanced M
anagement Program
me at
Harvard U
niversity Business School. In 1997, Tan Sri Dato' D
r. Wan M
ohd Zahid was conferred the
Doctor of Law
s "Honoris Causa" by the U
niversity of Lancaster, the United Kingdom
. Tan Sri D
ato' Dr. W
an Mohd. Zahid has m
ore than 30 years of experience in the Malaysian
education service. He held the post of D
irector-General of Education of M
alaysia in 1993, and upon his retirem
ent, he was appointed as advisor w
ith special functions to the Minister of Education. H
e had served as consultant to the Institute of Innovation and Technology, M
anila, the Philippines, and the U
NICEF Research Project on Pre-School Education. H
e had also served as a Council Mem
ber of the International Bureau of Education in G
eneva, Switzerland, and the Islam
ic Scientific, Education, Social and Cultural O
rganisation (ISESCO) in Rabat, M
orocco. In September 1999, he w
as appointed
AM
BSVPF Prospectus
AM
B Client Services 03-2034 0800 53
by UN
ESCO to serve as a consultant to the M
inistry of Education, Saudi Arabia, w
hen the country em
barked on an education reform initiative. In 2008 Tan Sri D
ato' Dr. W
an Mohd. Zahid w
as appointed as Chairm
an of the Higher Education A
cademy of the M
inistry of Higher Education. In
2011 he was appointed to serve as Chairm
an of the Education Advisory Council of the M
inistry of Education. Tan Sri D
ato' Dr. W
an Mohd. Zahid sits on the Board of D
irectors of Sime D
arby Berhad, SP Setia
Berhad and ASN
B. He had also served as D
eputy Chairman of Berger International Singapore and
Deputy Chairm
an of the International Bank of Malaysia Berhad until the m
erger of the bank.
Tan Sri Dato' M
d Desa bin Pachi
(Non-executive/Independent)
Tan Sri Dato' M
d. Desa bin Pachi w
as appointed as a Director of AM
B on 30 Novem
ber 2006, and as a m
ember of the investm
ent comm
ittee for all the funds managed by A
MB. O
n 12 July 2010 he was
also appointed as a mem
ber of the Risk Managem
ent Comm
ittee of the Board of Directors of PN
B. Tan Sri D
ato' Md. D
esa was a Chartered A
ccountant and was adm
itted as an Associate M
ember of
the Institute of Chartered Accountants, A
ustralia, in 1962, and a Fellow of the Institute of Chartered
Accountants, A
ustralia in 1974. He studied accountancy in M
elbourne, Australia, under a Colom
bo Plan Scholarship. H
e joined Shell Group of Com
panies in 1962 and served in various capacities in the Finance Adm
inistration. From 1970 to 1976, he w
as in public practice as Chartered Accountant
and was a partner of D
esa Megat &
Co and KPMG
Peat Marw
ick. He is a Fellow
Mem
ber of M
alaysian Institute of Managem
ent. Subsequently, he w
as appointed as the first Chief Executive Officer of PN
B and served as Chairm
an/Chief Executive Officer of M
alaysia Mining Corporation Berhad, Executive Chairm
an of Fleet G
roup Sdn Bhd, Chairman/M
anaging Director of The N
ew Straits Tim
es Press (Malaysia)
Berhad and Chairman of Sistem
Televisyen Malaysia Berhad. From
1982 to 2006, he was the
Chairman of Bum
iputra-Comm
erce Holdings Berhad. H
e also sits on the board of directors of several other com
panies which include A
SNB. In addition, he is an investm
ent comm
ittee mem
ber for all funds m
anaged by ASN
B except Am
anah Saham W
awasan 2020.
8.4 CO
MPA
NY SECRETA
RY Puan A
dibah Khairiah binti Ismail@
Daud
(MIA
13755) Com
pany Secretary W
ith effect from 30 N
ovember 2006, Puan A
dibah Khairiah binti Ismail@
Daud w
as appointed as the Com
pany Secretary of AMB. She holds Bachelor of Com
merce from
Australian N
ational University.
She is a Chartered Accountant and is a m
ember of the M
alaysian Institute of Accountants since
1999. Puan A
dibah started her career with M
essrs. Coopers & Lybrand, Public A
ccountants, from 1988 to
1994. She had served Sapura Holdings Sdn Berhad as Audit M
anager from 1994 to 1997, and
subsequently served Sapura Industrial Berhad (formerly know
n as Sapura Motors Berhad) from
1997 to 1999, as H
ead of Internal Audit. She had also served Percon Corporation Sdn Berhad as
AM
BSVPF Prospectus
54 A
MB Client Services 03-2034 0800
Financial Controller cum Com
pany Secretary in 2002 to 2005. She joined PNB in 2005 and w
as seconded to Pelangi Berhad, as Chief Financial O
fficer. Puan Adibah is presently attached to the
Company Secretary's D
epartment of PN
B since October 2006. She sits on the board of directors of
several companies.
8.5 SEN
IOR CO
MPLIA
NCE O
FFICER Encik Paisol bin A
hmad
Senior Compliance O
fficer Encik Paisol bin A
hmad is a registered com
pliance officer with the SC and the designated Senior
Compliance O
fficer of AMB. H
e has been the designated Senior Compliance O
fficer of funds of A
MB w
hich includes five (5) Shariah funds, i.e. AM
B Dana Yakin, A
MB D
ana Ikhlas, AM
B Dana A
rif, A
MB D
ana Aqeel – Capital Protected Series 2 and AMB D
ana Nabeel. H
e is a Fellow of the
Association of Chartered Certified A
ccountants, the United Kingdom
, a mem
ber of the Malaysian
Institute of Accountants and a Fellow
of Financial Services Institute of Australasia (FIN
SIA). Encik
Paisol has more than 15 years of experience in the unit trust industry, having served in various
senior positions within the PN
B Group since 1993. Encik Paisol bin A
hmad is a Certified Financial
Planner. He sits on the board of directors of several com
panies. 8.6
PROFILE O
F THE KEY M
AN
AG
EMEN
T STAFF O
F THE M
AN
AG
ER
Puan Aldilla @
Zilfalila binti Abdul H
alim (Sheila H
alim)
Chief Executive Officer
Puan Sheila is the Chief Executive Officer of AM
B since March 2008. Prior to joining A
MB, Puan
Sheila assumed a position as the Executive D
irector of CMS A
sset Managem
ent Sdn Bhd, a subsidiary of Cahya M
ata Sarawak Berhad (CM
S). Later, she was seconded as the A
cting Chief Executive O
fficer of CMS Trust M
anagement Berhad. She w
as overall responsible for developing business strategies, m
arketing & sales plans and structuring products for CM
S financial-related businesses in fund m
anagement and unit trust industry. She brings w
ith her more than 15 years of
marketing and investm
ent managem
ent experience which includes having being an equity portfolio
manager of PFM
Capital, a subsidiary of PNB and later to having served as D
irector of Fund M
anagement w
ith Towry Law
International. She holds a Bachelor of Science Degree in M
athematics
& Statistics from
the University of W
estern Ontario, Canada.
Encik Abdul Rani bin H
j Mohd Salleh
Head of Business Strategy, CEO
’s Office
Encik Abdul Rani H
j Mohd Salleh has m
ore than 10 years of experience with financial institutions
before joining ASN
B in 2001. He w
as the Head of A
SNB O
ffice in Kota Bharu and ASN
B Kangar (under M
arketing & Investm
ent Services Departm
ent) before joining Customer &
Agent Relation
Departm
ent, ASN
B Head O
ffice and was responsible for the overall A
SNB custom
ers’ feedback and special functions. Encik Abdul Rani joined A
MB on 1 D
ecember 2006. H
e holds a Diplom
a in Banking Studies from
Universiti Teknologi M
ARA
(UiTM
).
AM
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Puan Ahirah Binti A
bdul Rahman
Head of A
ccounts Departm
ent Puan A
hirah binti Abdul Rahm
an had more than eight (8) years of audit experience w
ith an established audit firm
before joining PNB in 1991. She w
as in the Finance Departm
ent, PNB and w
as subsequently transferred to the A
ccounts Departm
ent, ASN
B in 2001 and was responsible for the
overall accounting functions of the unit trust Fund. On 1 D
ecember 2006, Puan A
hirah joined AM
B as a H
ead of Accounts D
epartment. She holds a D
iploma in A
ccountancy from U
iTM.
Encik Sudin bin Samad
Head of O
perations Departm
ent Encik Sudin bin Sam
ad is the Head, O
perations Departm
ent. He joined AM
B on 1 Novem
ber 2011. H
e has more than 30 years of w
orking experience in PNB and A
SNB in various departm
ents such as Financial and M
anagement Audit D
epartment, Inform
ation Technology Departm
ent and Unit Trust
Operation D
epartment. H
e holds a Diplom
a in Accountancy from U
iTM. H
e is responsible for the overall operations and adm
inistration of AM
B.
Puan Ross Liza Binti Othm
an H
ead of Product Developm
ent & A
dministration D
epartment
Puan Ross Liza binti Othm
an has more than 10 years experience in the financial m
arket. Prior to joining AM
B in Decem
ber 2009, she was attached to the Fixed Incom
e team in the Investm
ent D
epartment of a m
ultinational insurance company for m
ore than eight (8) years where she w
as involved in various fixed incom
e investment dealing w
hich included bonds dealing, money m
arket, forex as w
ell as cash managem
ent and funding. Prior to that, she was w
ith a stockbroking compan
y and a bank. She holds an Executive-M
BA (H
ons) from U
iTM and B.A
. (Hons) D
egree in Business A
dministration (Finance) from
Michigan State U
niversity, East Lansing, the U
nited States of A
merica. She is responsible for product developm
ent which includes new
product creation, existing product enhancem
ent as well as product adm
inistration.
Encik Haniff bin A
b. Ham
id H
ead of Business & Prim
e Channel Departm
ent Encik H
aniff bin Ab. Ham
id has 20 years of experience in Sales & M
arketing Managem
ent in the financial industry. H
e joined AMB in A
pril 2012. H
e has served in senior position in large corporations such as Syarikat Takaful M
alaysia and Etiqa Insurance. His role involved developing
business and strategies, sales and marketing plans for corporate m
arket. His clients included those
in corporate business, bancassurance and agencies. He w
orked as a Project Consultant for property developm
ent, and at the same tim
e prior to joining AM
B, he was a trainer/lecturer for M
alaysian Insurance Institute (M
II). He is M
alaysian Insurance Institute (AMII) A
ssociate and holds a Diplom
a in Risks M
anagement and a D
iploma in Australian Insurance Institute from
UiTM
.
Cik Zuwita binti Ibrahim
H
ead of Direct &
Foreign Channel Departm
ent Zuw
ita Ibrahim has over 10 years experience in the field of Product D
evelopment. Prior to joining
ASN
B in April 2005, she w
as with RH
B Bank Berhad involved in the developing of retail deposit products of the bank and m
arketing plans to support the product sales & m
arketing strategy. After
AM
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six years with the bank, she joined A
SNB and w
as then seconded to AMB in June 2006 handling
product development and adm
inistration. As the H
ead of Direct Client &
Marketing of AM
B, she is currently responsible for securing and generating new
sales for the company’s business grow
th. She holds a B.A
. (Hons) D
egree in Business Adm
inistration (Finance) from D
eMonfort U
niversity, Leicester, the U
nited Kingdom. D
uring her tenure in ASN
B, she has completed her graduate diplom
a in A
pplied Finance from Kaplan Professional, Australia.
8.7 TH
E INV
ESTMEN
T COM
MITTEE O
F THE FU
ND
The Investm
ent Comm
ittee mem
bers Tun A
hmad Sarji bin A
bdul Ham
id (as afore-m
entioned) Tan Sri D
ato’ Dr. W
an Mohd. Zahid bin M
ohd. Noordin
(as afore-mentioned)
Tan Sri Dato’ M
d. Desa bin Pachi
(as afore-mentioned)
Roles and responsibilities The
Investment
Comm
ittee (IC)
is prim
arily responsible
for form
ulating, im
plementing
and m
onitoring the investment m
anagement strategies of the Fund in accordance w
ith the investment
objective set out for the Fund, the Deed, the prospectus, the G
uidelines and applicable laws, the
internal investm
ent restrictions
and policies
and acceptable
and efficacious
investment
managem
ent practices within the unit trust industry. The IC is also responsible for the overall
performance of the Fund by ensuring that the Fund is m
anaged professionally. In addition, the IC review
s and approves the portfolio strategies recomm
ended by the EIM. The IC m
eets once a m
onth and more frequently should circum
stances require. The EIM w
ill report on the activities and perform
ance of the Fund directly to the IC at monthly intervals for overall review
s. 8.8
PRO
FILE OF TH
E SHA
RIAH
COM
MITTEE
The Shariah Comm
ittee mem
bers D
ato’ Dr. A
bdul Halim
bin Ismail
Dato’ D
r. Abdul H
alim bin Ism
ail was appointed as a m
ember of the Shariah Com
mittee of the
Shariah funds managed by A
MB on 30 N
ovember 2006.
Dato’ D
r. Abdul Halim
was the M
anaging Director of Bank Islam
Malaysia Berhad (1983-1994),
Chairman of the Board of D
irectors of Syarikat Takaful Malaysia Berhad (1984-1994), and the
Executive Director D
ealing of BIMB Securities Sdn. Berhad (1994-2010). H
e holds a Bachelor of Arts (H
ons.), Degree in Econom
ics from the U
niversity of Malaya and D
octor of Philosophy (D. Phil.) in
Economics from
the University of O
xford, the United Kingdom
. D
ato’ Dr. A
bdul Halim
sits on the board of directors of several companies.
AM
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B Client Services 03-2034 0800 57
Prof. Datuk D
r. Syed Othm
an bin Syed Hussin A
lhabshi Prof. D
atuk Dr. Syed O
thman bin Syed H
ussin Alhabshi w
as appointed as a mem
ber of the Shariah Com
mittee of the Shariah funds m
anaged by AM
B on 30 Novem
ber 2006. He holds a Bachelor of
Economics D
egree in Statistics from U
niversity of Malaya, M
aster of Science in Statistics from
University of W
isconsin, the United States of A
merica and Ph.D
in Econometrics from
University of
Birmingham
, the United Kingdom
. Prof. D
atuk Dr. Syed O
thman has m
ore than 30 years experience in the Malaysian education
service. He w
as Professor, Dean of G
raduate School and Acting D
ean of Matriculation Centre of
International Islamic U
niversity Malaysia and D
eputy Vice-Chancellor (Academ
ic) of Universiti U
tara M
alaysia. He also held the post of D
eputy Director-G
eneral of Institute of Islamic U
nderstanding M
alaysia (IKIM) and had also previously served as the founding President and Chief Executive
Officer
of U
niversity Tun
Abdul
Razak. H
e is
currently The
Chief A
cademic
Officer
of the
International Centre for Education in Islamic Finance (IN
CEIF), a university dedicated to Islamic
Finance. H
e is currently a mem
ber of the Board of Directors of Pak-Kuw
ait Takaful Pte Ltd Pakistan; Maybank
Islamic Berhad; Prim
a Prai Sdn Bhd.; Epen Bina Sdn Bhd.; Universiti Teknikal M
ARA
and Institut Kefaham
an Islam
M
alaysia (IKIM
). H
e now
sits
on Shariah
Advisory
Comm
ittee for
Labuan Reinsurance (L) Ltd. and Singapore U
nit Trusts Ltd. (SUT). H
e is also a Shariah advisor for Nom
ura A
sset Managem
ent, a mem
ber of the Board of Trustees for Yayasan Bank Rakyat and a Certified Shariah Individual by the SC.
Prof. Dato’ D
r. Abdul M
onir bin Yaacob Prof. D
ato’ Dr. A
bdul Monir bin Yaacob w
as appointed as a mem
ber of the Shariah Comm
ittee of the Shariah funds m
anaged by AM
B on 30 Novem
ber 2006. Prof. D
ato’ Dr. A
bdul Monir obtained first D
egree “al-Aliyah” from
Al-A
zhar University and a
Diplom
a in Law and later a M
aster of Philosophy (Law) from
University of London. H
e later com
pleted his Ph.D at the International Islam
ic University of M
alaysia in 1991. Prof. Dato’ D
r. Abdul M
onir has more than 10 years experience as a lecturer and held the post of A
ssociate Professor, Faculty of Law
, Universiti Kebangsaan M
alaysia. He w
as appointed as Assistant D
irector General of
Institut Kefahaman Islam
Malaysia (IKIM
) in Novem
ber 1997 and was later m
ade Director G
eneral of IKIM
from April 2002 to M
arch 2005. He w
as appointed as Professor at the Departm
ent of Syariah and Law
, Academ
y of Islamic Studies, the U
niversity of Malaya from
January 2006 to May
2007 and as the Academ
ic Advisor to Sultan Sharif A
li Islamic U
niversity, Brunei Darussalam
from
May 2007 to M
ay 2009. H
is present position is in Chief of Adm
inistration Council of the University of M
alaya. Prof. Dato’ D
r. A
bdul Monir is also a m
ember of Shariah Com
mittee of Singapore U
nit Trust Limited.
AM
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Prof. Dato’ D
r. Mahm
ood Zuhdi bin Hj A
b. Majid
Prof. Dato’ D
r. Mahm
ood Zuhdi bin Hj A
b. Majid w
as appointed as a mem
ber of the Shariah Com
mittee of the Shariah funds m
anaged by AMB on 30 N
ovember 2006.
Prof. Dato’ D
r. Mahm
ood Zuhdi holds a Bachelor Degree in Shariah from
Yayasan Pengajian Tinggi Islam
Kelantan, and later obtained a Masters in Shariah from
University A
l-Azhar, Cairo, as w
ell as a M
asters in Philosophy from U
niversity of Kent. He w
ent on to complete his Ph.D
at the University of
Malaya. H
e was the D
ean of the Faculty of Syariah as well as D
irector of Academy of Islam
ic Studies, U
niversity Malaya and the D
ean of the Kuliyyah of Islamic Revealed Know
ledge and Hum
an Sciences,
International Islam
ic U
niversity M
alaysia (IIU
M).
He
is currently
the D
ean of
the International Institute of Islam
ic Thought and Civilization (ISTAC), IIU
M.
Prof. Dato’ D
r. Mahm
ood Zuhdi also sits on various advisory boards. He is the Chairm
an of the Shariah Com
mittee of Public Bank Berhad and Shariah advisor of A
s-Salihin Trustee. He is also the
author of more than 20 Islam
ic publications. Roles and responsibilities • To ensure that the Fund is m
anaged and administered in accordance w
ith Shariah Principles; • To provide expertise and guidance in all m
atters relating to Shariah Principles, including on the Fund’s
Deed
and prospectus,
the Fund’s
structure and
investment
processes, and
other operational and adm
inistrative matters;
• Where there is any am
biguity or uncertainty as to an investment, instrum
ent, system, procedure
and/or process, to consult the SC; • To act w
ith due care, skill and diligence in carrying out their duties and responsibilities; • To review
the Fund’s compliance reports as provided by the com
pliance officer, and investment
transaction reports provided by, or duly approved by, the Trustee to ensure that the Fund’s investm
ents are in line with Shariah Principles; and
• To review the Fund’s property during the Shariah Com
mittee m
eetings and to prepare a report to be included in the Fund’s interim
and annual reports certifying whether the Fund has been
managed and adm
inistered in accordance with Shariah Principles for the respective periods
concerned. The Shariah Com
mittee m
eetings are held formally at least once every three (3) m
onths and more
frequently should circumstances require.
8.9 PRO
FILE OF TH
E EXTERNA
L INV
ESTMEN
T MA
NA
GER
KENA
NG
A ISLA
MIC IN
VESTO
RS BERHA
D (KIIB)
Kenanga Islamic Investors Berhad (“KIIB”) w
as incorporated as a public company in 1997 under the
Companies A
ct 1965 as Kenanga Unit Trust Berhad (“KU
TB”) to solely conduct a unit trust business in M
alaysia. In 2009, pursuant to the rationalization and re-organization of the asset and unit trust m
anagement
businesses of the K & N
Kenanga Holdings Berhad group of com
panies (“Kenanga Group”), the
business and assets of Kenanga Asset M
anagement Sdn Bhd (“KAM
”) a fund managem
ent company
AM
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B Client Services 03-2034 0800 59
within the Kenanga G
roup was transferred to KU
TB. KUTB subsequently applied for and w
as licensed as a fund m
anager under the Act. KU
TB was renam
ed as Kenanga Fund Managem
ent Berhad (“KFM
B”) following the com
pletion of the rationalization and re-organization exercise. In N
ovember 2010, KFM
B transferred its business and employees to Kenanga Investors Berhad
(“KIB”) and subsequently changed its name to Kenanga Islam
ic Investors Berhad in August 2011.
Pursuant to the Kenanga Group business plans for KIIB to becom
e a fully operational Islamic fund
managem
ent business, KIIB applied for and received its Islamic fund m
anagement licence from
the SC in A
pril 2012. KIIB is the Kenanga Group’s asset m
anagement arm
focused on exclusively providing Shariah-com
pliant investment products to both dom
estic and regional markets.
Effective 1 April 2013, KIIB is a w
holly-owned subsidiary of KIB. A
s at 31 October 2014, the total
asset under managem
ent of KIIB stands at approximately M
YR1.46 billion. The profile of KIIB’s key personnel are as follow
s: Shahariah Binti Shaharudin Chief Executive O
fficer/ Executive Director
Shahariah binti Shaharudin joined KIIB as the Chief Executive Officer / Executive D
irector in March
2014. She was in Kenanga Investors Berhad (KIB) from
April 2011 as the H
ead of Institutional Business. Shahariah brings w
ith 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 com
pany as Head of D
ealing managing
institutional trade. In 2006, she joined a local fund managem
ent company under Strategic Business
and Market D
evelopment D
ivision 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 A
rts Degree in Business Studies from
Knox College, Illinois and M
aster of Arts in Econom
ics from U
niversity of Illinois, Springfield, USA
. She holds the Capital M
arkets Services Representative’s Licence. Chung Yee W
ah Chief Investm
ent Officer
Yee Wah joined KIIB as the Chief Investm
ent Officer in February 2012. H
e brings with him
more
than 18 years of experience in the investment field, m
anaging domestic and regional equity
portfolios. Yee Wah started off as an investm
ent analyst in 1993 and had worked
in UM
BC Securities Sdn Bhd and Jam
es Capel (Malaysia) Sdn Bhd (later know
n as HSBC Securities (M
alaysia) Sdn Bhd) before he joined A
bu Dhabi Investm
ent Authority as a fund m
anager in 1998. He returned
to Malaysia in 2007 and joined A
mInvestm
ent Bank Berhad as an Associate D
irector for institutional sales (equity). Yee W
ah then moved on to U
OB-O
SK Asset M
anagement Sdn Bhd as an A
ssociate D
irector to manage institutional funds before he joined KIIB. Yee W
ah earned a BBA from
the N
ational University of M
alaysia with a m
ajor in finance. He holds the Capital M
arkets Services Representative’s Licence.
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Mohd Ezani Bin A
bu Yazid Senior Portfolio M
anager M
ohd Ezani bin Abu Yazid joined KIB in March 2011 and w
as transferred to KIIB in July 2012. He has
eighteen (18) years experience in the disciplines of treasury & m
oney market m
anagement. In
1993, he began his career in the Treasury Departm
ent of Bank Utam
a (M) Berhad and in 1996,
joined Bolton Finance Berhad (later known as A
lliance Finance Berhad). He m
oved into the funds m
anagement industry in 2001 w
hen he joined BHLB A
sset Managem
ent Sdn Bhd (“BAM
”). BAM
later m
erged with SBB Asset M
anagement (“SBBA
M”) (later know
n as SBB Investment M
anagement
Sdn Bhd) and Ezani retained his position until he joined RHB Investm
ent Managem
ent Sdn Bhd (“RH
BIM”) in M
ay 2006. During his tenure in RH
BIM he m
anaged wholesale and retail cash funds.
His other w
ide experience includes central dealing of equity, fixed income and foreign exchange. H
e has a D
iploma in A
griBusiness from U
niversity Putra Malaysia. Ezani is a holder of the Capital
Markets Services Representative’s Licence.
Designated investm
ent manager of the Fund
The designated fund manager for the Fund is Chung Yee W
ah whose profile is disclosed above. H
e is supported by the other m
embers of the investm
ent team.
Roles and duties of the EIM
The main duties of the EIM
are as follows: -
- To com
ply with the operation
procedures and invest the Fund in accordance with the
Guidelines.
- To exercise due diligence and vigilance in carrying out its function and duties as agreed betw
een the M
anager and the EIM, and com
ply with the A
ct, directives and guidelines issued by the relevant authorities from
time to tim
e. -
To conduct market, technical and econom
ic research to identify suitable investments and to
facilitate optimal asset allocations for the Fund.
- To endeavour to use its professional discretion to reallocate assets at the m
ost appropriate tim
es with the aim
to optimising returns for the U
nit Holders.
- To seek to invest in the m
ost suitable assets within each class of assets.
- To subm
it recomm
endation to the Investment Com
mittee for review
and approval of portfolio strategies, at the Investm
ent Comm
ittee meeting to be held m
onthly. 8.10
DECLA
RATIO
N O
F CON
FLICT OF IN
TEREST INV
OLV
ING
EIM
The Manager has in place policies and procedures to deal w
ith any conflict of interest situations. In m
aking an investment transaction for the Fund, the EIM
will not m
ake improper use of its positions
in managing the Fund to gain, directly or indirectly, any advantage or to cause detrim
ent to the interests of U
nit Holders.
As at LPD
, to the best of the Manager’s know
ledge, there has been no occurrence of conflict of interest involving the EIM
. The EIM is a com
pany independent from the M
anager.
AM
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8.11
MA
NA
GER’S D
ELEGA
TE
Fund accounting and fund valuation functions
CIM
B Islamic Trustee Berhad
The Manager has appointed CIM
B Islamic Trustee Berhad (CITB) as the fund accounting and
valuation agent for the Fund. The profile for CITB is provided for under section 9.1 on page 62 of this prospectus.
U
nder the terms of the agreem
ent, CITB will record and m
aintain proper financial accounting records of the Fund, carry out daily portfolio valuation and fund pricing and provide the unit prices for publications, in accordance w
ith the requirements of the prospectus and the D
eed.
Permodalan N
asional Berhad Perm
odalan Nasional Berhad (PN
B) is a holder of Capital Markets Services Licence under the A
ct. Established in 1978 as one of the vehicles of the N
ew Econom
ic Policy, PNB has had considerable
success in promoting share ow
nership of the Bumiputera in the corporate sector thro
ugh its unit trust funds. A
s at LPD, PN
B has a staff strength of 760 persons. PNB m
anages total funds of M
YR 273.1 billion as at 28 February 2015.
The Manager outsources the follow
ing functions to PNB:
- Com
pliance -
Risk managem
ent -
Internal audit -
Legal -
Hum
an resource operations and administration
- H
uman resource planning and developm
ent -
Procurement
- Inform
ation technology -
Corporate comm
unication 8.12
MA
TERIAL LITIG
ATIO
N A
ND
ARBITRA
TION
A
s at LPD, there is no m
aterial litigation or arbitration, including any pending or threatened and there are no facts likely to give rise to any proceedings, w
hich might m
aterially affect the business and/or financial position of the M
anager or any of its delegates.
AM
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9. THE TRU
STEE OF TH
E FUN
D
9.1
PROFILE O
F CIMB ISLA
MIC TRU
STEE BERHA
D
CIMB Islam
ic Trustee Berhad was incorporated on 19 January 1988 and registered as a trust
company under the Trust Com
panies Act, 1949 and having its registered office at Level 13, M
enara CIM
B, Jalan Stesen Sentral 2, Kuala Lumpur Sentral 50470, Kuala Lum
pur, Malaysia. The Trustee is
qualified to act as a trustee for collective investment schem
es approved under the Capital Markets
and Services Act 2007. CIM
B Islamic Trustee Berhad has an authorised capital of M
YR5,000,000 divided
into 500,000
ordinary shares
of M
YR10 each
of w
hich the
total issued
capital is
MYR2,000,000 divided into 200,000 ordinary shares of M
YR10 each, and the total paid up capital is M
YR1,000,000 divided into 200,000 ordinary shares of MYR10 each and partly paid-up at M
YR5 each. Experience in trustee business A
s at 31 March 2015, CIM
B Islamic Trustee Berhad acts as trustee to one (1) real estate investm
ent trust fund, tw
enty four (24) unit trust funds, seventeen (17) wholesale funds and one (1) private
retirement schem
e (consisting of three (3) funds) and has more than tw
enty five (25) years of experience as a trustee to unit trust funds. In addition to overseeing these funds, CIM
B Islamic Trustee Berhad also acts as trustee to private
debt securities issues such as sukuk, bonds and notes. Other than being the adm
inistrator of deceased’s estates, executor of w
ills, trustee for minors or incapacitated persons, CIM
B Trustee also acts as trustee for public, charitable, staff retirem
ent, and pension/ gratuity fund scheme,
custodian trustee for associations, clubs and others. CIM
B Islamic Trustee Berhad is supported by nineteen (19) staff, com
prising of twelve (12)
executives and seven (7) non-executives as at 31 March 2015.
Financial performance
The following is a sum
mary of the past perform
ance of CIMB Islam
ic Trustee Berhad based on the audited accounts for the past three (3) financial years ended 31 D
ecember:-
Year Ended 31
Decem
ber 2013 Year Ended 31
Decem
ber 2012 Year Ended 31
Decem
ber 2011
MYR'000
MYR'000
MYR'000
Paid-up share capital 1,000
1,000 1,000
Shareholders' funds 6,573
6,311 5,317
Turnover 2,788
4,000 5,164
Pretax profit 370
1,386 2,322
Profit after taxation 263
993 1,740
* Only Shariah-com
pliant income are recognised since the entity's conversion to Islam
ic in 2012.
AM
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Board of Directors
The following table sets out inform
ation regarding the Board of Directors of CIM
B Islamic Trustee
Berhad:-
Nam
e D
irectorship Zahardin Bin O
mardin
Non-Executive, Independent D
irector & Chairm
an M
ohamad Safri Bin Shahul H
amid
Liew Pik Yoong
Non-Executive, N
on-Independent Director
Executive, Non-Independent D
irector
Head/D
irector, Group Trustee Services
Liew Pik Yoong
Chief Operating O
fficer Lee Kooi Yoke 9.2
RO
LES, DU
TIES AN
D RESPO
NSIBILITIES O
F THE TRU
STEE The Trustee’s functions, duties and responsibilities are set out in the D
eed. The general functions, duties and responsibilities of the Trustee include, but are not lim
ited to, the following:
(a) Take into custody the investm
ents of the Fund and hold the investments in trust for the U
nit H
olders; (b)
Ensure that
the M
anager operates
and adm
inisters the
Fund in
accordance w
ith the
provisions of the Deed, G
uidelines 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, G
uidelines and any other matters w
hich in the Trustee's opinions may indicate that the
interests of Unit H
olders are not served; (d)
Exercise reasonable diligence in carrying out its functions and duties, actively monitoring the
operations and managem
ent of the Fund by the Manager to safeguard the interests of U
nit H
olders; (e)
Maintain, or cause the M
anager to maintain, proper accounting records and other records as
are necessary to enable a complete and accurate view
of the Fund to be formed and to ensure
that the Fund is operated and managed in accordance w
ith the Deed, prospectus, the
Guidelines and securities law
; and (f)
Require that the accounts be audited at least annually.
The Trustee has covenanted in the Deed that it w
ill exercise all due diligence and vigilance in carrying out its functions and duties, and in safeguarding the rights and interests of U
nit Holders.
Trustee’s responsibility statem
ent The Trustee has given its w
illingness to assume the position as Trustee of the Fund and all the
obligations in accordance with the D
eed, all relevant laws and rules of law
.
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Trustee’s Declaration
The Trustee is independent of the Manager. The Trustee w
ill carry out transactions on an arm’s
length basis and on terms w
hich are best available for the Fund, as well as act at all tim
es in the best interest of the Fund’s U
nit Holders. The Trustee also has adequate procedures and processes
in place to prevent or control conflicts of interest.
Trustee’s obligation The Trustee’s obligation in respect of m
onies paid by an investor for the application of Units arises
when the m
onies are received in the relevant account of the Trustee for the Fund and the Trustee’s obligation is discharged once it has paid the redem
ption amount to the M
anager. Trustee’s disclosure of m
aterial litigation and arbitration A
s at LPD, CIM
B Islamic Trustee Berhad is not engaged in any m
aterial litigation and arbitration, including those pending or threatened, and is not aw
are of any facts likely to give rise to any proceedings w
hich might m
aterially affect the business and/or financial position of the Trustee or any of its delegates. Trustee’s D
elegate CIM
B Islamic Trustee Berhad has appointed CIM
B Islamic N
ominees (Tem
patan) Sdn Bhd (8424H)
as the Trustee’s delegate to perform custodial function. CIM
B Islamic N
ominees (Tem
patan) Sdn Bhd is a w
holly owned subsidiary of CIM
B Islamic Bank Berhad. Its custodial function includes
safekeeping, settlement and corporate action related processing and cash and security reporting,
All investm
ents are automatically registered in the nam
e of the Fund. CIMB Islam
ic Nom
inees (Tem
patan) Sdn Bhd acts only in accordance with instructions from
the Trustee.
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10. SA
LIENT TERM
S OF TH
E DEED
Recipients of this prospectus and all prospective investors in the U
nits should refer to the Deed to
confirm specific inform
ation and to obtain a detailed understanding of the Fund. The Deed is
available for inspection at the business office of the Manager and the business office of the Trustee.
Please be advised that if you invest in Units through a D
istribution Channel which adopts the
nominee system
of ownership, you w
ould not be considered as a Unit H
older under the Deed and
you may consequently not have all the rights ordinarily exercisable by a U
nit Holder (for exam
ple, the right to call for a U
nit Holders’ m
eeting and to vote thereat and the right to have your particulars appearing in the register of U
nit Holders of the Fund).
The Deed
AM
BSVPF is a unit trust fund constituted by the Deed, as entered into betw
een the Trustee and A
MB. The D
eed came into effect on the date of registration by the SC. Each U
nit Holder shall be
entitled to the benefit of and shall be bound by the terms and conditions of the D
eed. Pursuant to the D
eed, the Trustee shall take into its custody or control all the assets of the Fund and hold the sam
e in trust for the Unit H
olders in accordance with the D
eed and all relevant laws.
The Deed is governed by, and shall be construed in accordance w
ith, the laws of M
alaysia. 10.1
RIG
HTS A
ND
LIABILITIES O
F UN
IT HO
LDERS
Unit H
olders shall, inter alia, have the right to attend and vote at meetings of U
nit Holders.
How
ever no Unit H
older shall be entitled to require the transfer of him of any investm
ent or other property com
prised in the Fund or to interfere with or question the exercise by the Trustee or the
Manager on his behalf of the rights of the Trustee as ow
ner of such Fund. The liability of U
nit Holders is lim
ited to the purchase price paid for the Units. U
nit Holders are not
under any obligation to indemnify the M
anager and/or the Trustee for liabilities incurred on behalf of the Fund w
hich exceeds the gross asset value of the Fund, and any right of indemnity of the
Trustee and/or the Manager shall be lim
ited to recourse to the Fund. 10.2
M
AXIM
UM
FEES AN
D CH
ARG
ES PERMITTED
BY THE D
EED
Class A
nnual m
anagement fee
(% of N
AV
)
Annual trustee fee
(% of N
AV
)
Sales charge (%
of NA
V per
Unit )
Repurchase charge (%
of NA
V per U
nit)
A-M
YR 1.50
0.06 5.5
Nil
C-MYR
1.30
B-JPY 1.50
B-SGD
1.50
B-USD
1.50
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10.3 IN
CREASE IN
FEES AN
D CH
ARG
ES FROM
THE LEV
EL DISCLO
SED IN
THE PRO
SPECTUS A
ND
TH
E MA
XIMU
M RA
TE PROV
IDED
IN TH
E DEED
The annual m
anagement fee and trustee fee shall not exceed the m
aximum
stated in the Deed. The
annual managem
ent fee and the trustee fee cannot be charged at a rate higher than that disclosed in the prospectus unless the M
anager and the Trustee have agreed on a higher rate in accordance w
ith the Deed and all relevant law
s and Unit H
olders have been notified of the higher rate and the effective date. The sales charge shall not exceed the m
aximum
as set out in the Deed. The M
anager may only
charge a higher sales charge than that disclosed in the prospectus in accordance with the D
eed and all relevant law
s. 10.4
PERM
ITTED EXPEN
SES PAYA
BLE OU
T OF TH
E FUN
D’S PRO
PERTY O
nly expenses which are directly related and necessary m
ay be charged to the Fund. These include (but are not lim
ited to) the following:
(i) com
missions/fees paid to brokers in effecting dealings in the investm
ents of the Fund show
n on the contract notes or confirmations notes;
(ii) taxes and other duties charged to the Fund by the governm
ent and/or other authorities; (iii)
fees and other expenses properly incurred by the auditor and/or tax agent appointed for the Fund;
(iv) costs, fees and expenses incurred for the valuation of any investm
ent of the Fund by independent valuers for the benefit of the Fund;
(v) costs, fees and expenses incurred for any m
odification of the Deed save w
here such m
odification is for the benefit of the Manager and/or the Trustee; and
(vi) costs, fees and expenses incurred for any m
eetings of Unit H
olders save where such m
eeting is convened for the benefit of the M
anager and/or the Trustee.
The Deed provides that expenses such as overheads, costs for services expected to be provided by
the Manager, prom
otional expenses and expenses incurred in the registering and issuing of the prospectus (unless no sales charge is levied on the U
nits sold) and the remuneration of any
delegate of the Manager, shall not be charged to the Fund. The Trustee shall ensure that all
expenses charged to the Fund are legitimate, not excessive and does not go beyond standard
comm
ercial rates. 10.5
RETIREM
ENT, REM
OV
AL A
ND
REPLACEM
ENT O
F THE M
AN
AG
ER The M
anager may retire from
its post and be replaced with som
e other qualified managem
ent com
pany approved by the Trustee after the following conditions under the relevant law
s have been satisfied:
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(i) the retiring M
anager shall appoint another corporation to be the new m
anager of the Fund, in w
riting and under the seal of the retiring Manager. The new
manager w
ill be assigned all the rights and duties of the form
er Manager;
(ii) the new
ly appointed manager m
ust enter into the Deed;
(iii) once the retiring M
anager pays all sums due to the Trustee, the retiring M
anager shall be absolved and released from
all further obligations hereunder but without prejudice to the
rights of the Trustee or any Unit H
older or other person in respect of any act or omission on
the part of the retiring manager prior to such retirem
ent and the new m
anagement
company m
ay and shall thereafter exercise all the powers and enjoy all the rights and shall
be subject to all the duties and obligations of the Manager hereunder as fully as though
such new m
anagement com
pany had been originally a party to the Deed.
The present Manager m
ay be removed in any of the follow
ing events: (i)
According to the D
eed and applicable law, the M
anager may be rem
oved by the Trustee as soon as the Trustee becom
es aware that the M
anager: (a)
has failed or is unable to carry out its duties as required by the Trustee, and for any other reasons to ensure the interest of the U
nit Holders are protected;
(b) is in liquidation;
(c) is under receivership or has ceased to carry on business; or
(d) has failed to com
ply with any provisions of the D
eed, the Act and other relevant law
s. (ii)
If a special resolution is passed by the Unit H
olders that the Manager be rem
oved. The appointm
ent of the new m
anager must first be authorised by the SC. O
nce authorisation is obtained, the new
manager w
ill enter into a deed or deeds (on the advice of the Trustee) to ensure that the m
anager performs its duties as m
anager during the remainder of the period of the Fund.
10.6
RETIREMEN
T, REMO
VA
L AN
D REPLA
CEMEN
T OF TH
E TRUSTEE
The Trustee may retire upon giving 6 m
onths’ notice to the Manager of its desire to do so, or such
shorter period as the Manager and the Trustee m
ay agree, and may by D
eed appoint in its stead or as an additional trustee a new
trustee authorised by the relevant authorities and under any relevant law
. Pursuant to section 299(1) of the A
ct, it is the duty of the Manager to rem
ove the Trustee as soon as it becom
es aware that the Trustee:
(ii) has ceased to exist;
(iii) has not been validly appointed;
(iv) is not eligible to be appointed or to act as Trustee under section 290 of the A
ct; (v)
has failed or refused to act as Trustee in accordance with the provisions or covenants of the
Deed or the provisions of the A
ct; (vi)
is under investigation for conduct that contravenes the Trust Companies A
ct, 1949, the Trustee A
ct, 1949, the Companies A
ct, 1965, or any securities law; or
(vii) w
hen a receiver is appointed over the whole or a substantial part of the assets or
undertaking of the existing trustee and has not ceased to act under the appointment or a
petition is presented for the winding up of the existing trustee (other than for the purpose
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of and followed by a reconstruction, unless during or follow
ing such reconstruction the existing trustee becom
es or is declared to be insolvent). The Trustee m
ay be removed and another trustee (duly authorised as aforesaid) m
ay be appointed by a special resolution of the U
nit Holders at a duly convened m
eeting of which notice has been
given to the Trustee and the Manager. The M
anager will sum
mon a m
eeting of the Unit H
olders for the purpose of considering and if thought fit, passing a resolution for the rem
oval of the Trustee in the event that the U
nit Holders request the M
anager to do so, in the manner as stated in the D
eed. 10.7
TERM
INA
TION
OF TH
E FUN
D O
R A CLA
SS OF U
NITS O
F THE FU
ND
The Fund shall continue until determ
ined by the Trustee under the provisions of the Deed. The
Trustee shall as soon as practicable after the determination of the Fund give to each U
nit Holder
notice of such determination.
The Trustee may, inter alia, in any but not lim
ited to the following circum
stances determine the
Fund: a)
if the Manager shall go into liquidation (except a voluntary liquidation for the purpose of
reconstruction or amalgam
ation upon terms previously approved in w
riting by SC); or b)
if in the opinion of the Trustee, the Manager has ceased to carry on business; or
c) if in the opinion of the Trustee, the M
anager has failed to comply w
ith the Deed to the
prejudice of the Unit H
olders; and shall sum
mon a m
eeting of Unit H
olders in accordance with the provisions of the D
eed for the purpose of seeking directions from
the Unit H
olders. If at any such meeting a special resolution to
terminate and w
ind up the Fund is passed by the Unit H
olders, the Trustee shall apply to the court for an order confirm
ing such resolution. The Fund or any Class m
ay be terminated if a special resolution is passed at a m
eeting of Unit
Holders of the Fund or that particular Class to term
inate the Class provided always that such
termination does not prejudice the interest of U
nit Holders of any other Class.
10.8
UN
IT HO
LDERS’ M
EETING
The U
nit Holders m
ay apply to the Manager to sum
mon a m
eeting for any purpose. Unless
otherwise required by law
, the Manager shall, not later than 21 days of receiving an application
from not less than 50 or 1/10 in num
ber of all Unit H
olders, convene a meeting of the U
nit Holders.
The Trustee and the Manager m
ay convene a Unit H
olders’ meeting in accordance w
ith the Deed
for any purpose. The quorum
required for a meeting of the U
nit Holders shall be five (5) U
nit Holders, w
hether present in person or by proxy, provided alw
ays that the quorum for a m
eeting of the Unit H
olders convened for the purpose of voting on a special resolution shall be five (5) U
nit Holders, w
hether present in person or by proxy, w
ho must hold in aggregate at least tw
enty five per centum (25%
)of the U
nits in Circulation at the time of the m
eeting except that where such special resolution is only
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in respect of a particular Class of Units, the relevant quorum
shall be twenty five per centum
(25%)
of the Units in Circulation of that Class at the tim
e of the meeting and provided further that if the
Fund has five (5) or less Unit H
olders, the quorum required for a m
eeting of the Unit H
olders of the Fund shall be tw
o (2) Unit H
olders (or of the relevant Class), whether present in person or by proxy
provided that if the meeting has been convened for the purpose of:
(a) voting on a special resolution, the U
nit Holders present in person or by proxy m
ust hold in aggregate at least 25%
of the Units in Circulation at the tim
e of the meeting except that
where such special resolution is only in respect of a particular Class, the relevant quorum
shall be 25%
of the Units in Circulation of that Class at the tim
e of the meeting; and
(b)
removing the M
anager and/or the Trustee, the Unit H
olders present in person or by proxy m
ust hold in aggregate at least 50% of the U
nits in Circulation at the time of the m
eeting. N
o business shall be transacted at any meeting unless the requisite quorum
is present at the com
mencem
ent of business. U
nless otherwise prescribed by law
, a Unit H
olders’ meeting sum
moned pursuant to the D
eed shall be held not later than tw
o (2) months after the notice w
as given, at the time and place stipulated in
the notice and advertisement.
At a m
eeting of Unit H
olders of any Class, every Unit H
older who is present in person or by proxy
shall have one (1) vote in a vote taken by show of hands. If voting proceeds by w
ay of a poll, every U
nit Holder present in person or by proxy shall have one (1) vote for every U
nit held. At a meeting
of Unit H
olders of the Fund where voting proceeds by w
ay of a poll, the NA
V per Unit of each U
nit held by a U
nit Holder present in person or by proxy shall be determ
ined and converted to the Base Currency as at the date of issue of the notice of m
eeting (or such other date as may be agreed by
the Trustee and the Manager) and the vote of each U
nit Holder present in person or by proxy shall
be determined by the said value of the U
nits.
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11. APPRO
VA
LS AN
D CO
ND
ITION
S Exem
ptions from the G
uidelines (i)
Shareholders, Directors and Key Personnel
Clause 3.05
“A director of a m
anagement com
pany should not: (a)
hold office as director of more than one m
anagement com
pany at any one time; and
(b) hold
office as
mem
ber of
the investm
ent com
mittee
of funds
managed
and adm
inistered by another managem
ent company.”
Exem
ption from this clause w
as extended to allow all of the directors of A
MB to rem
ain as directors and m
ember of the investm
ent comm
ittee of other funds and administered by
other managem
ent companies. Exem
ption from Clause 3.05 of the G
uidelines has been granted to AM
B for the above purpose via a letter dated 23 Novem
ber 2006.
(ii) M
embers of Investm
ent Comm
ittee
Clause 6.04(a) & 6.04(b)
“A m
ember of the investm
ent comm
ittee should not hold office as: (a)
mem
ber of an investment com
mittee of funds m
anaged and administered by another
managem
ent company;
(b)
director of another managem
ent company.”
Exem
ption from clause 6.04(a) &
6.04(b) was granted to
the Investment Com
mittee
mem
bers of the Fund subject to the following conditions by the SC:
(1) A
MB, A
SNB and Pelaburan H
artanah Nasional Berhad (PH
NB) rem
ain controlled by the sam
e ultimate shareholder.
(2) Exem
ption is granted to the following com
mittee m
embers of the Fund:
(i)
Exem
ption from clause 6.04(a) of the G
uidelines was extended to allow
:
(c) Tun A
hmad Sarji bin A
bdul Ham
id; and (d)
Tan Sri Dato’ M
d. Desa bin Pachi;
to remain as investm
ent comm
ittee mem
bers of funds managed by A
SNB.
(ii)
Exem
ption from clause 6.04(b) of the G
uidelines was extended to allow
:
(a) Tun Ahm
ad Sarji bin Abdul Ham
id to remain as director of A
SNB and
PHN
B; and (b)
Tan Sri Dato’ D
r. Wan M
ohd. Zahid bin Mohd. N
oordin and Tan Sri Dato’
Md. D
esa bin Pachi to remain as directors of A
SNB.
(3)
There must be clear disclosure in the prospectus of the Fund on the abovem
entioned Investm
ent Com
mittee
mem
bers’ appointm
ent as
mem
bers of
the investm
ent com
mittee of funds operated by A
SNB as w
ell as their directorships at ASN
B and PH
NB, as proposed.
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12. RELATED
PARTY TRA
NSA
CTION
S/CON
FLICT OF IN
TEREST Conflict of interest
AM
B and its holding company, A
SNB are both unit trust m
anagement com
panies managing unit
trust funds. In relation to the above: (i)
The following directors of AM
B are also directors of ASN
B: •
Tun Ahm
ad Sarji bin Abdul H
amid;
• Tan Sri D
ato’ Sri Ham
ad Kama Piah bin Che O
thman;
• Tan Sri D
ato’ Dr. W
an Mohd. Zahid bin M
ohd. Noordin; and
• Tan Sri D
ato’ Md. D
esa bin Pachi. (ii)
The following investm
ent comm
ittee mem
bers of all the unit trust funds managed by A
MB are
also investment com
mittee m
embers for the follow
ing unit trust funds managed by A
SNB:
• Tun Ahm
ad Sarji bin Abdul Ham
id for all unit trust funds managed by A
SNB except for
Am
anah Saham W
awasan 2020; and
• Tan Sri D
ato’ Md D
esa bin Pachi for all unit trust funds managed by A
SNB except for A
manah
Saham W
awasan 2020.
Previously, the appointment of the investm
ent comm
ittee mem
bers for all the other unit trust funds m
anaged by ASN
B and AM
B had been authorised by the SC. Policies on dealing w
ith conflict of interest situations The M
anager has in place policies and procedures to deal with any conflict of interest situations. In
making an investm
ent transaction for the Fund, the EIM w
ill not make im
proper use of its position in m
anaging the Fund to gain, directly or indirectly, any advantage or to cause detriment to the
interests of Unit H
olders. A
s at LPD, to the best of the M
anager’s knowledge, there has been no occurrence of conflict of
interest involving the Manager. W
here a conflict or potential conflict of interest is identified, this m
ust be evaluated by the Senior Compliance O
fficer and disclosed to the Chief Executive Officer
(CEO) of the M
anager for the next course of action. Conflict of interest situations involving the CEO
will be disclosed to the board of directors of the M
anager for a decision on the next course of action. D
irectors or staff who are in advisory positions such as portfolio m
anagers or staff who have
access to information on transactions are not allow
ed to engage in dealings on their own acco
unt. Investm
ent Comm
ittee mem
bers who hold substantial shareholdings or directorships in public
companies shall refrain from
any decision making if the Fund invest in the particular share or stocks
of such companies.
Details of A
MB’s directors’ direct and indirect interest in other corporations carrying on a sim
ilar business
As at the LPD
, AMB’s directors do not have any direct or indirect interest in other corporations
carrying on a similar business save for Tun A
hmad Sarji bin Abdul H
amid and Tan Sri D
ato’ Sri H
amad Kam
a Piah bin Che Othm
an who each hold one (1) subscriber share in PH
NB but have no
beneficial interest in the same.
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Details of A
MB’s substantial shareholders’ direct and indirect interest in other corporations
carrying on a similar business
As at the LPD
, ASN
B, the holding company of AM
B does not have any direct or indirect interest in other corporations carrying on a sim
ilar business. Statem
ent of conflict of interest of experts The
Manager is
not aw
are of
any existing
or potential
conflicts of
interest involving
the solicitors save and except that M
essrs Zainal Abidin & Co are also panel solicitors for PN
B and ASN
B. The M
anager is not aware of any existing or potential conflicts of interest involving the tax advisors.
Related party transactions/conflict of interest in relation to the Trustee A
s Trustee for the Fund, there may be related party transaction involving or in connection w
ith the Fund in the follow
ing events: 1)
Where the Fund invests in instrum
ents offered by the related party of the Trustee (e.g placem
ent of monies, structured products, etc);
2) W
here the Fund is being distributed by an IUTA w
hich is a related party of the Trustee; 3)
Where the assets of the Fund are being custodised by the related party of the Trustee both as
sub-custodian and/or global custodian of the Fund; and 4)
Where the Fund obtains financing as perm
itted under the Guidelines, from
the related party of the Trustee.
The Trustee has in place policies and procedures to deal with conflict of interest, if any. The Trustee
will not m
ake improper use of its position as the ow
ner of the Fund's assets to gain, directly or indirectly, any advantage or cause detrim
ent to the interests of Unit H
olders. Any related party transaction is to be m
ade on terms w
hich are best available to the Fund and which are not less
favourable to the Fund than an arms-length transaction betw
een independent parties. Subject to the above and any local regulations, the Trustee and/or its related group of com
panies m
ay deal with each other, the Fund or any U
nit Holder or enter into any contract or transaction
with each other, the Fund or any U
nit Holder or retain for its ow
n benefit any profits or benefits derived from
any such contract or transaction or act in the same or sim
ilar capacity in relation to any other schem
e.
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13. TAXA
TION
OF TH
E FUN
D
Taxation adviser’s letter in respect of the taxation of the unit trust and the U
nit Holders
(prepared for inclusion in this first prospectus) Ernst &
Young Tax Consultants Sdn Bhd
26 February 2015
Level 23A Menara M
ilenium
Pusat Bandar Dam
ansara 50490 Kuala Lum
pur The Board of D
irectors A
manah M
utual Berhad 34
th Floor, Menara PN
B 201-A, Jalan Tun Razak 50400 Kuala Lum
pur D
ear Sirs Taxation of the unit trust and unit holders This letter has been prepared for inclusion in this first prospectus in connection w
ith the offer of units in the unit trust know
n as AM
B Shariah Value Plus Fund (hereinafter referred to as “the Fund”). The purpose of this letter is to provide prospective unit holders w
ith an overview of the im
pact of taxation on the Fund and the unit holders.
Taxation of the Fund The taxation of the Fund is subject to the provisions of the M
alaysian Income Tax A
ct 1967 (“M
ITA”), particularly Sections 61 and 63B.
Under Section 2(7) of the M
ITA, any reference to interest shall apply, m
utatis mutandis, to gains or
profits received and expenses incurred, in lieu of interest, in transactions conducted in accordance w
ith 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 w
ith the principles of Syariah, w
ill be accorded the same tax treatm
ent as if they were interest.
Subject to certain exemptions, the incom
e of the Fund comprising profits and other investm
ent incom
e derived from or accruing in M
alaysia after deducting tax allowable expenses, is subject to
Malaysian incom
e tax, which is currently im
posed at the rate of 25%1.
1 In the 2014 Budget announcem
ent, it was proposed that this incom
e tax rate be reduced to 24% w
ith effect from
the year of assessment 2016. This proposal has yet to be legislated.
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Tax allowable expenses w
ould comprise expenses falling under Section 33(1) and Section 63B of
the MITA
. Section 33(1) permits a deduction for expenses that are w
holly and exclusively incurred in the production of gross incom
e. 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 follow
ing expenses incurred by the Fund which are not
deductible under Section 33(1) of the MITA:
the m
anager's remuneration,
m
aintenance 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 follow
ing formula:
A x B
4C
where
A is the total of the perm
itted expenses incurred for that basis period;
B is gross incom
e 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 m
ade from the
realisation of investments (w
hether chargeable to tax or not) for that basis period,
provided that the amount of deduction to be m
ade shall not be less than 10% of the total
permitted expenses incurred for that basis period.
Exempt incom
e
The following incom
e of the Fund is exempt from
income tax:
M
alaysian sourced dividends
Tax exempt dividends received from
investments in com
panies which had previously enjoyed
or are currently enjoying certain tax incentives provided under the relevant legislation.
2 Pursuant to Section 15 of the Finance A
ct 2011, with effect from
the year of assessment 2011, dividend
income is deem
ed to include income distributed by a unit trust w
hich includes distributions from Real
Estate Investment Trusts.
AM
BSVPF Prospectus
AM
B Client Services 03-2034 0800 75
Any dividends paid, credited or distributed to any person w
here the company paying such
dividends is not entitled to deduct tax under Section 108 of the MITA
(comm
only referred to as single tier dividends).
M
alaysian sourced interest (profits)
(i) interest
from
securities or
bonds issued
or guaranteed
by the
Governm
ent of
Malaysia;
(ii) interest from
debentures or Islamic securities, (other than convertible loan stock)
approved by the Securities Comm
ission; (iii)
interest from Bon Sim
panan Malaysia issued by Bank N
egara Malaysia;
(iv) interest derived from
Malaysia and paid or credited by banks or financial institutions
licensed under the Banking and Financial Institutions Act 1989 or the Islam
ic Banking A
ct 19833;
(v) interest from
Islamic securities originating from
Malaysia, other than convertible loan
stock issued in any currency other than Ringgit and approved by the Securities Com
mission or the Labuan O
ffshore Financial Services Authority (LO
FSA) 4
(vi)
interest received from bonds or securities issued by Pengurusan D
anaharta Nasional
Berhad; and (vii)
interest derived from bonds (other than convertible loan stock) paid or credited by any
company listed on the M
alaysian Exchange of Securities Dealing and A
utomated
Quotation Berhad (M
ESDA
Q) 5.
Discount
Tax exem
ption is given on discount paid or credited to any unit trust in respect of investments
as specified in items (i), (ii) and (iii) above.
3 The Banking and Financial Institutions A
ct 1989 and the Islamic Banking A
ct 1983 were repealed and
replaced with the Financial Services A
ct 2013 and the Islamic Financial Services Act 2013, respectively, w
ith 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 A
ct 2013, any reference to the Banking and Financial Institutions A
ct 1989 and the Islamic Banking A
ct 1983 in any written law
shall generally be construed as a reference to the Financial Services A
ct 2013 or the Islamic Financial Services A
ct 2013, respectively. 4 Pursuant to Section 4 of the Finance A
ct 2011, with effect from
11 February 2010, ‘LOFSA
’ refers to Labuan Financial Services A
uthority (LFSA).
5 MESD
AQ w
as replaced by FTSE Bursa Malaysia A
CE with effect from
3 August 2009, therefore any interest
derived from bonds (other than convertible loan stock) paid or credited by any com
pany listed on the M
ESDAQ
should still qualify for an exemption up to 2 A
ugust 2009. How
ever, from 3 A
ugust 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 com
pany listed in the new FTSE Bursa M
alaysia ACE.
AM
BSVPF Prospectus
76 A
MB Client Services 03-2034 0800
Foreign sourced income
Dividends, profits and other incom
e derived from sources outside M
alaysia and received in M
alaysia by a resident unit trust is exempt from
Malaysian incom
e tax. How
ever, such income m
ay 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 investm
ents will not be
treated as income of the Fund and hence, are not subject to incom
e tax. Such gains may be subject
to real property gains tax ("RPGT") under the Real Property G
ains Tax Act 1976 (“RPG
T Act”), if the
gains are derived from the sale of chargeable assets, as defined in the RPG
T Act.
Goods and Services Tax (“G
ST”) It w
as announced in the Malaysian Budget 2014 that G
ST will be im
plemented on 1 A
pril 2015 at the rate of 6%
to replace the existing sales tax and services tax. Based on the GST A
ct 2014, the Fund, being collective investm
ent scheme vehicles, w
ill be making exem
pt supplies. Hence, they
are not required to be registered for GST purposes. H
owever, the Fund w
ill incur expenses such as m
anagement fees, trustee fees and other adm
inistrative charges which w
ill be subjected to 6%
GST. The 6%
input tax incurred on such expenses will not be claim
able by the Fund. Taxation of unit holders For M
alaysian income tax purposes, unit holders w
ill be taxed on their share of the distributions received from
the Fund. The incom
e of unit holders from their investm
ent in the Fund broadly falls under the following
categories: 1.
taxable distributions; and 2.
non-taxable and exempt distributions.
In addition, unit holders may also realise a gain from
the sale of units. The tax im
plications of each of the above categories are explained below:
1. Taxable distributions
D
istributions received from the Fund w
ill have to be grossed up to take into account the underlying tax paid by the Fund and the unit holder w
ill be taxed on the grossed up amount.
Such distributions carry a tax credit, which w
ill 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.
AM
BSVPF Prospectus
AM
B Client Services 03-2034 0800 77
Please refer to the paragraph below for the incom
e tax rates applicable to the grossed up distributions.
2. N
on-taxable and exempt distributions
Tax exem
pt distributions made out of gains from
the realisation of investments and other
exempt incom
e earned by the Fund will not be subject to M
alaysian income tax in the hands
of the unit holders. Rates of tax The M
alaysian income tax chargeable on the unit holders depends on their tax residence status
and whether they are individuals, corporations or trust bodies. The relevant incom
e tax rates are as follow
s:
Unit holders
Malaysian incom
e tax rates
Malaysian tax resident:
Individual and non-corporate unit holders (such as associations and societies)
Co-operatives
6
Trust bodies
Progressive tax rates ranging from
0%
to 26%7
Progressive tax rates ranging from
0%
to 25%8
25%
1
6 Pursuant to Paragraph 12(1), Schedule 6 of the M
ITA, the incom
e of any co-operative society—
(a) in respect of a period of five years com
mencing from
the date of registration of such co-operative society; and
(b) thereafter w
here the mem
bers’ 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 assessm
ent is less than seven hundred and fifty thousand ringgit
is exempt from
tax. 7 In the 2014 M
alaysian Budget announcement, it w
as proposed that the top Malaysian incom
e tax rate for resident individuals be reduced from
26% to 25%
, with effect from
the year of assessment 2015. This
proposal has yet to be legislated. 8 In the 2014 M
alaysian Budget announcement, it w
as proposed that the top Malaysian incom
e tax rate for co-operatives be reduced from
25% to 24%
, with effect from
the year of assessment 2015. This proposal
has yet to be legislated.
AM
BSVPF Prospectus
78 A
MB Client Services 03-2034 0800
Unit holders
Malaysian incom
e tax rates
Corporate unit holders (i)
A com
pany with paid up capital in
respect of ordinary shares of not m
ore than RM2.5 m
illion (at the beginning of the basis period for the year of assessm
ent) 9 (ii)
Companies other than (i) above
For every first RM
500,000 of chargeable incom
e @ 20%
10
Chargeable income in excess of
RM500,000 @
25%10
25%
1
Non-M
alaysian tax resident (Note):
Individual and non-corporate unit holders
Corporate unit holders and trust bodies
26%
11
25%1
Note:
Non-resident unit holders m
ay 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 arrangem
ents with M
alaysia.
Gains from
sale of units
Gains arising from
the realisation of investments w
ill not be subject to income tax in the hands of
unit holders unless they are insurance companies, financial institutions or traders/ dealers in
securities.
9 A
company w
ould not be eligible for the 20% tax rate on the first RM
500,000 of chargeable income if:-
(a) m
ore than 50% of the paid up capital in respect of the ordinary shares of the com
pany is directly or indirectly ow
ned by a related company w
hich has paid up capital in respect of ordinary shares of more
than RM2.5 m
illion at the beginning of a basis period for a year of assessment;
(b) the com
pany owns directly or indirectly m
ore than 50% of the paid up capital in respect of the
ordinary shares of a related company w
hich has paid up capital in respect of ordinary shares of more
than RM2.5 m
illion at the beginning of a basis period for a year of assessment;
(c) m
ore than 50% of the paid up capital in respect of the ordinary shares of the com
pany and a related com
pany which has a paid up capital in respect of ordinary shares of m
ore than RM2.5 m
illion at the beginning of a basis period for a year of assessm
ent is directly or indirectly owned by another
company.
10 In the 2014 Malaysian Budget announcem
ent, it was proposed that the incom
e tax rate be reduced to 19%
on chargeable income up to RM
500,000 and 24% on the rem
aining chargeable income, w
ith effect from
the year of assessment 2016. This proposal has yet to be legislated.
11 In the 2014 Malaysian Budget announcem
ent, it was proposed that the incom
e tax rate for non-resident individuals be reduced from
26% to 25%
, with effect from
the year of assessment 2015. This proposal has
yet to be legislated.
AM
BSVPF Prospectus
AM
B Client Services 03-2034 0800 79
Unit splits and reinvestm
ent of distributions U
nit holders may also receive new
units as a result of unit splits or may choose to reinvest their
distributions. The income tax im
plications of these are as follows:
U
nit splits – new units issued by the Fund pursuant to a unit split w
ill not be subject to income
tax in the hands of the unit holders.
Reinvestment of distributions – unit holders m
ay choose to reinvest their income distribution in
new units by inform
ing the Manager. In this event, the unit holder w
ill be deemed to have
received the distribution and reinvested it with the Fund.
**********************************************
We hereby confirm
that, as at the date of this letter, the statements m
ade in this report correctly reflect our understanding of the tax position under current M
alaysian tax legislation and the related interpretation and practice thereof, all of w
hich are subject to change, possibly on a retrospective basis. W
e have not been retained (unless specifically instructed hereafter), nor are w
e obligated to monitor or update the statem
ents for future conditions that may affect these
statements.
The statements m
ade in this letter are not intended to be a complete analysis of the tax
consequences relating to an investor in the Fund. As the particular circum
stances of each investor m
ay differ, we recom
mend that investors obtain independent advice on the tax issues associated
with an investm
ent in the Fund. Yours faithfully Ernst &
Young Tax Consultants Sdn Bhd Farah Rosley Partner Ernst &
Young Tax Consultants Sdn Bhd has given its consent to the inclusion of the Taxation A
dviser's Letter in the form and context in w
hich it appears in this Prospectus and has not w
ithdrawn such consent before the date of issue of this Prospectus.
AM
BSVPF Prospectus
80 A
MB Client Services 03-2034 0800
14. A
DD
ITION
AL IN
FORM
ATIO
N
14.1 CU
STOM
ER INFO
RMA
TION
SERVICE
You can seek assistance on any issue relating to the Fund on Business Days by contacting:
• AM
B Client Services Unit: +603-2034 0800 from
9.00 a.m. to 6.00 p.m
. • D
istribution Channels from 9.00 a.m
. to 4.30 p.m.
Alternatively, you m
ay also: • Em
ail at ambcare@
pnb.com.m
y • Visit A
MB’s w
ebsite at ww
w.am
bmutual.com
.my
Unit price
Unit H
olders can also view the N
AV per U
nit on our website. The M
anager has taken necessary procedures to ensure accuracy of inform
ation of pricing sent to Bernama and the respective
newspapers.
14.2 REG
ULA
R REPORTS A
ND
STATEM
ENTS O
N YO
UR IN
VESTM
ENT
There are three (3) main types of inform
ation that you will receive about your investm
ent. You should read these docum
ents carefully. 1.
Transaction statement
When you m
ake an investment in the Fund, you w
ill receive a copy of the application form
showing details of the am
ount you have invested in the Fund. The Manager w
ill subsequently forw
ard a transaction statement to confirm
the number of U
nits you have invested in the Fund w
ithin 14 days from the receipt of the com
pleted application by the Manager. Sim
ilarly for any other transactions you m
ake in the Fund, you will receive a copy of the transaction statem
ent w
ithin 14 days showing details of the transaction be it repurchase, sw
itching or transfer of U
nits.
2. Interim
and annual reports A
MB publishes strategies and perform
ance of the Fund twice a year in interim
and annual reports and distributes to U
nit Holders such reports w
ithin two (2) m
onths from the end of the
half-year and financial year of the Fund respectively. AM
B shall submit the interim
report and lodge the annual report w
ith the SC.
3. Interim
and annual investment statem
ent The M
anager will forw
ard to the Unit H
olders the interim and annual investm
ent statement
showing all transactions perform
ed and balance of the Units w
ithin two (2) m
onths from the
end of the half year and financial year of the Fund respectively.
AM
BSVPF Prospectus
AM
B Client Services 03-2034 0800 81
14.3 REG
ISTER OF U
NIT H
OLD
ERS The principal register of U
nit Holders w
ill be kept at the business office of the Manager and w
ill be available for inspection by U
nit Holders from
9.00 a.m. to 6.00 p.m
., on Business Days.
14.4 A
NTI-M
ON
EY LAU
ND
ERING
POLICY
In complying w
ith the Anti Money Laundering and A
nti-Terrorism Financing A
ct 2001, the Board of the D
irectors of AMB has approved the follow
ing policies and procedures to be administered by
AM
B: (a) Screening of transactions equal and above the threshold level from
time to tim
e in any of the Funds;
(b) Conducting review on the transactions equal and above the threshold level;
(c) Reporting of the suspicious transaction to Bank Negara M
alaysia by the designated reporting officer.
14.5 M
ATERIA
L CON
TRACTS
Save as disclosed below, there are no other m
aterial contracts (including contracts not reduced into w
riting), not being contracts entered into in the ordinary course of business, which have been
entered into that relates to the Fund within tw
o (2) years preceding the date of this prospectus: (a)
The Deed dated 17 April 2015, constituting AM
BSVPF, entered into between A
MB and the
Trustee, for the benefit of the Unit H
olders. (b)
The Investment M
anagement A
greement dated 17 A
pril 2015, in relation to AMBSVPF setting
out the terms and conditions upon w
hich the EIM has been appointed and has agreed to act as
the EIM of A
MBSVPF entered into betw
een AMB and the EIM
.
AM
BSVPF Prospectus
82 A
MB Client Services 03-2034 0800
15. CON
SENTS
The consents of the Trustee, the principal banker, the solicitors, the EIM, the auditor and the tax
advisor for the inclusion of their names in the form
and context in which such nam
es appear in this prospectus have been given before the issue of this prospectus and have not been subsequently w
ithdrawn.
The consent of the tax advisor for the inclusion of their tax advisor’s letter in the form and context
in which it appears in this prospectus has been given before the issue of this prospectus and has not
been subsequently withdraw
n. 16. D
OCU
MEN
TS AV
AILA
BLE FOR IN
SPECTION
For a period of at least 12 m
onths from the date of issuance of this prospectus, copies of the
following docum
ents (where applicable) m
ay be inspected at the business office of the Manager
without charge: -
(i) The D
eed; (ii)
Each material contract disclosed in this prospectus;
(iii) The
audited financial
statements
of the
Fund for
the current
financial year
(where
applicable) and
for the
last three
(3) financial
years or
if the
Fund has
been established/incorporated for a period of less than three years, the entire period preceding the date of this prospectus;
(iv) A
ll reports, letters or other documents, valuations and statem
ents by any expert, any part of w
hich is extracted or referred to in this prospectus; (v)
Writ and relevant cause papers for all current m
aterial litigation and arbitration disclosed in this prospectus; and
(vi) A
ll consents given by experts in this prospectus. 17.
DISTRIBU
TION
CHA
NN
ELS M
ALA
YAN
BAN
KING
BERHA
D
1st Floor M
enara Maybank
100 Jalan Tun Perak 50 050 Kuala Lum
pur M
aybank Group Call Centre:1-300-88-6688
: mgcc@
maybank.com
.my
Website
: ww
w.m
aybank2u.com
AM
AN
AH
SAH
AM
NA
SION
AL BERH
AD
Jabatan Perhubungan Pelanggan &
Ejen U
G Balai PN
B 201-A Jalan Tun Razak 50400 Kuala Lum
pur H
otline : 03-2057 3000 / 03-20573111
Fax : 03-2050 5220
.my
Website
: ww
w.asnb.com
.my
Any other appointed D
istribution Channels from tim
e to time.