preface - maybank · preface dear prospective investors, thank you for considering an investment in...

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

[email protected]

.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


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


“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


“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


“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


“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


“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


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


“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


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


pur Telephone

: (603)-2034 0800

Facsimile

: (603)-2162 5958 / (603)-2163 3212 A

MB Client Services U

nit : (603)-2034 0800

Email

: am

[email protected]

.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


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


pur

AM

BSVPF Prospectus

10 A


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




pur Tel: (603) - 2261 8888 Fax: (603) - 2261 9889 D

elegate: CIM

B Islamic N

ominees (Tem

patan) Sdn Bhd (8424-H)

Registered Office




pur Tel: (603) - 2261 8888 Fax: (603) - 2261 8889 W

eb: ww

w.cim

b.com

Business Office




pur Tel: (603) - 2261 8888 Fax: (603) - 2261 9892

AM

BSVPF Prospectus

AM


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


pur Telephone : (603) - 2050 5100 Fax : (603) - 2050 5268 W

ebsite

: ww

w.pnb.com

.my

(fund accounting and fund valuation functions) CIM


) Registered O

ffice Level 13, M

enara CIMB

Jalan Stesen Sentral 2 Kuala Lum


pur Tel: (603) - 2261 8888 Fax: (603) - 2261 0099 W

eb: ww

w.cim

b.com

Business Office




pur Tel: (603) - 2261 8888 Fax: (603) - 2261 9886

AM

BSVPF Prospectus

12 A


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


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


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


FUN

D IN

FORM

ATIO

N

Details

on page:

Trustee CIM


) 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


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


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


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


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


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


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


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.

AM

BSVPF Prospectus

AM


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

BSVPF Prospectus

24 A


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

BSVPF Prospectus

AM


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

BSVPF Prospectus

26 A


• 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.

AM

BSVPF Prospectus

AM


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

AM

BSVPF Prospectus

28 A


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.

AM

BSVPF Prospectus

AM


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.

AM

BSVPF Prospectus

30 A


(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

BSVPF Prospectus

AM


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.

AM

BSVPF Prospectus

32 A


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%.

AM

BSVPF Prospectus

AM


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


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


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


(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


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


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


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


(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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


oordin (N

on-executive/Independent) Tan Sri D

ato' Dr. W


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


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


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

BSVPF Prospectus

AM


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

BSVPF Prospectus

56 A


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


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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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


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


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

BSVPF Prospectus

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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.

AM

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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

.

AM

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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.

AM

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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

AM

BSVPF Prospectus

66 A


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:

AM

BSVPF Prospectus

AM


(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

AM

BSVPF Prospectus

68 A


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


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

AM

BSVPF Prospectus

AM


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


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.

AM

BSVPF Prospectus

70 A


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


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


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


id to remain as director of A

SNB and

PHN

B; and (b)

Tan Sri Dato’ D

r. Wan M


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.

AM

BSVPF Prospectus

AM


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


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


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.

AM

BSVPF Prospectus

72 A


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.

AM

BSVPF Prospectus

AM


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


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.

AM

BSVPF Prospectus

74 A


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


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


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


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


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


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


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


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


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

Email

: 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

Email

: [email protected]

.my

Website

: ww

w.asnb.com

.my

Any other appointed D

istribution Channels from tim

e to time.

preface - maybank · preface dear prospective investors, thank you for considering an investment in...

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