MASTER PROSPECTUS

Transcription

MASTER PROSPECTUS

TABLE OF CONTENTS
1. GLOSSARY ............................................................................................................................................................1
2. DIRECTORY..........................................................................................................................................................4
3. KEY DATA OF THE FUNDS...............................................................................................................................7
FUNDS’ INFORMATION.......................................................................................................................................7
CHARGES, FEES & EXPENSES .........................................................................................................................15
TRANSACTIONS..................................................................................................................................................18
DISTRIBUTION POLICY.....................................................................................................................................22
4. INTRODUCTION TO UNIT TRUST INVESTMENTS ..................................................................................24
THE BASICS .........................................................................................................................................................24
REGULATORY FRAMEWORK ..........................................................................................................................25
THE BENEFITS.....................................................................................................................................................25
THE POTENTIAL RISKS .....................................................................................................................................26
5. THE FUNDS IN DETAIL....................................................................................................................................30
6. PERFORMANCE OF THE FUNDS ..................................................................................................................84
7. CHARGES, FEES & EXPENSES ....................................................................................................................100
CHARGES ............................................................................................................................................................100
FEES AND EXPENSES.........................................................................................................................................100
8. TRANSACTION INFORMATION ..................................................................................................................102
SALE & REDEMPTION OF UNITS...................................................................................................................102
TRANSACTION DETAILS ................................................................................................................................104
9. UNITHOLDERS’ RIGHTS AND LIABILITIES............................................................................................111
10. THE MANAGEMENT AND ADMINISTRATION OF THE FUNDS........................................................112
THE MANAGER...............................................................................................................................................112
THE INVESTMENT MANAGER ....................................................................................................................117
THE INVESTMENT COMMITTEE.................................................................................................................121
THE SYARIAH ADVISER...............................................................................................................................123
11. THE TRUSTEES..............................................................................................................................................126
12. TAXATION ADVISER’S LETTER ON TAXATION OF THE FUNDS AND UNITHOLDERS............136
13. ACCOUNTANTS' REPORTS FOR FUNDS................................................................................................142
14. UNAUDITED INTERIM AND ANNUAL ACCOUNTS FOR THE FUNDS .............................................188
15. ACCOUNTANT’S REPORT FOR SBB MUTUAL BERHAD....................................................................190
16. CONSENTS ......................................................................................................................................................202
17. DOCUMENTS AVAILABLE FOR INSPECTION ......................................................................................203
18. DIRECTORS' DECLARATION ....................................................................................................................204
19. LIST OF OFFICES ..........................................................................................................................................205
20. APPENDIX I - UNIT TRUST LOAN FINANCING RISK DISCLOSURE STATEMENT ...................210
21. APPENDIX II – RATING TABLE BY RATING AGENCY MALAYSIA.................................................211
22. APPENDIX III – RATING AGENCY MALAYSIA - ISLAMIC DEBT RATING....................................212
23. APPENDIX IV – MALAYSIA RATING CORPORATION ........................................................................213
24. APPENDIX V – ISLAMIC CAPITAL MARKET INSTRUMENT RATING............................................215
1. GLOSSARY
In this Prospectus, the following words or abbreviations shall have the following meaning unless
otherwise stated:
AmTB
: AmTrustee Berhad (163032-V)
ARB
: Amanah Raya Berhad (344986-V)
Auditor
: An approved auditor independent of both the Trustee and the Manager and
appointed as auditor of the respective Fund
AZAM
: SBB Dana Al-Azam
BHLV
: BHL Venture Berhad (1147-M)
BNM
: Bank Negara Malaysia
BOF
: SBB Bond Fund
Business Day
: A day on which the KLSE is open for normal business
CIF
: SBB Composite Index Fund
CRS
: SBB Crystal Equity Fund
DALI
: SBB Dana Al-Ihsan
DALI 2
: SBB Dana Al-Ihsan 2
Deed
: The Fourth Supplemental Deed dated 22 September 2003 (to the Master
Deed dated 23 November 2001) constituting the Funds with provisions
governing the Funds and includes any deed supplemental thereto
DGF
: SBB Double Growth Fund
ECO
: SBB Emerging Companies Growth Fund
EIF
: SBB Equity Income Fund
Eligible Market
: A market which is regulated by a regulatory authority within Malaysia,
operated regularly, open to the public and where there is adequate liquidity
for the purposes of the Funds. It includes, but is not limited to:
a stock exchange approved and an exempt stock market declared by the
Minister respectively under the Securities Industry Act 1983;
a futures market of an exchange company approved and an exempt
futures market declared by the Minister respectively under the Futures
Industry Act 1993;
the money market (includes the market for short term money market
papers such as Malaysian Government Securities, Treasury Bills,
negotiable instruments of deposit, redemption agreements, Cagamas
mortgage bonds, Bank Negara Bills and other similar instruments); and
the over-the-counter private debt securities market
1
1. GLOSSARY
Funds
(each a Fund)
:
The trusts constituted by the Deed and called SBB Double Growth Fund,
SBB Emerging Companies Growth Fund, SBB Savings Fund, SBB High
Growth Fund, SBB Dana Al-Ihsan, SBB Bond Fund, SBB Index-Linked
Fund, SBB Dana Al-Mizan, SBB HGF Sequel Fund, SBB Premium Capital
Fund, SBB Retirement Balanced Fund, SBB Composite Index Fund, SBB
Dana Al-Hikmah, SBB Dana Al-Azam, SBB Dana Al-Ihsan 2, SBB Equity
Income Fund and SBB Crystal Equity Fund respectively, or by such other
name as the Trustee and the Manager (with the approval of the SC) may
from time to time determine as a unit trust scheme approved by the SC
Fund Manager
:
The designated fund manager responsible for the particular Fund(s)
Guidelines
:
The SC Guidelines on Unit Trust Funds (as may be amended from time to
time)
HIKMAH
:
SBB Dana Al-Hikmah
HGF
:
SBB High Growth Fund
IBFIM
:
Islamic Banking and Finance Institute Malaysia Sdn Bhd (340040-M)
INF
:
SBB Index-Linked Fund
Investment
Committee
:
The investment committee appointed for the Funds as required under the
Guidelines
Investment Manager
:
SBBAM as the investment manager with the responsibility of managing the
investments of the Funds delegated to it by the Manager
IUTA
:
Institutional Unit Trust Agent
KLCI
: Kuala Lumpur Stock Exchange Composite Index
KL EMAS
: Kuala Lumpur Stock Exchange Main Board All Share Index
KLSE
: Kuala Lumpur Stock Exchange
KLSI
:
Kuala Lumpur Stock Exchange Syariah Index
KWSP
:
Kumpulan Wang Simpanan Pekerja
Liquid Assets
:
Cash, deposits with licensed institutions and/or other institutions licensed or
approved to accept deposits and any other instrument capable of being
converted into cash within 7 days as may be approved by the Trustee
Long term
: More than 5 years
Manager
: Manager of the Funds, SBB Mutual Berhad (formerly known as BHLB
Pacific Trust Management Berhad) (209627-H)
Medium term
:
3 to 5 years
2
1. GLOSSARY
MIZAN
:
SBB Dana Al-Mizan
MTB
:
Malaysian Trustees Berhad (21666-V)
Net Asset Value
(NAV)
:
In relation to a Fund, is determined by deducting the value of all liabilities of
that Fund from the value of all assets of that Fund, at each valuation point.
For the purpose of computing the annual management fee and annual trustee
fee, the NAV of that Fund would be inclusive of the management fee and
trustee fee for the relevant day
NAV per Unit
:
In relation to a Fund, the NAV of that Fund divided by the number of units
in circulation of that Fund, at the valuation point
PCF
: SBB Premium Capital Fund
RAM Quantshop
MGS All Index
: An index developed jointly by Rating Agency of Malaysia (RAM) and
Quant Shop Pty Ltd
RBF
: SBB Retirement Balanced Fund
Redemption
: Shall wherever the context so permits mean redemption or repurchase
RM
: Ringgit Malaysia
SBB
: Southern Bank Berhad (5303-W)
SBBAM
: SBB Asset Management Sdn Bhd (217841-M)
SBB Mutual
: SBB Mutual Berhad (formerly known as BHLB Pacific Trust Management
Berhad) (209627-H), as Manager
SC
: The Securities Commission established under the SCA
SCA
: Securities Commission Act 1993, as amended from time to time
SC Requirements
: At any time, the statutory provisions, regulations, guidelines, directives,
waiver, exemptions and conditions which apply or affect the terms and
conditions of the Funds, or as the case may be, in relation to a Fund
SEQUEL
: SBB HGF Sequel Fund
SF
: SBB Savings Fund
Short term
:
Less than 3 years
Syariah Principles
:
The principles which are derived from the sources of Islamic Jurisprudence
mainly the Quran, the Sunnah, the Ijma' and the Qiyas
Trustee
: Trustee of the Funds
Unitholder
: A person(s) registered as holder of a unit or units and whose name appears
in the Register of Unitholders and includes his/her representative duly
appointed by operation of law
UTMB
: Universal Trustee (Malaysia) Berhad (17540-D)
3
2. DIRECTORY
MANAGER
SBB MUTUAL BERHAD (formerly known as BHLB
PACIFIC TRUST MANAGEMENT BERHAD) (209627-H)
Registered Office
18th Floor, MUI Plaza, Jalan P. Ramlee, 50250 Kuala Lumpur
Tel: 03-2147 3241; Fax: 03-2148 3419
Business Office
and Registrar
50, 52 & 54, Jalan SS21/39, Damansara Utama
47400 Petaling Jaya, Selangor Darul Ehsan
Tel: 03-7718 3000; Fax: 03-7726 5088
Website: http://www.sbbmutual2u.com
e-mail: [email protected]
BOARD OF DIRECTORS
Chairman
Dato’ Seri Goh Eng Toon
Directors
Dato’ Yeap Leong Huat
YM Raja Puan Sri Dato’ Noora Ashikin Bte Raja Abdullah
Dato’ Dr Yahya Bin Ismail
Tan Sri Dato’ (Dr) R .V. Navaratnam (Independent)
Wong Joon Hian (Independent)
(All are non-executive directors)
TRUSTEE FOR DGF
AMANAH RAYA BERHAD (344986-V)
Registered Office
Tingkat 10, Wisma Amanah Raya Berhad
No. 15, Jalan Sri Semantan 1
Off Jalan Semantan, Bukit Damansara
50508 Kuala Lumpur
Tel: 03- 2095 3232; Fax: 03- 2095 3311
Business Office
Tingkat 9, Wisma Amanah Raya Berhad
No. 15, Jalan Sri Semantan 1
Off Jalan Semantan, Bukit Damansara
50508 Kuala Lumpur
Tel: 03- 2095 2559; Fax: 03- 2095 2710, 03-2095 2720,
03-2095 2753
Website: http://www.arb.com.my
TRUSTEE FOR ECO, SF, HGF,
SEQUEL, MIZAN, PCF, RBF,
CIF, DALI 2, AZAM, HIKMAH,
CRS & EIF
UNIVERSAL TRUSTEE (MALAYSIA) BERHAD
(17540-D)
Registered & Business Office
1, Jalan Ampang (3rd Floor), 50450 Kuala Lumpur
Tel:03-2070 8050, 03-2070 9470
Fax: 03-2031 9385, 03-2031 8715, 03-2031 3194
4
2. DIRECTORY
TRUSTEE FOR DALI & BOF
AmTRUSTEE BERHAD (163032-V)
Registered Office
22nd Floor, Bangunan AmBank Group
No. 55, Jalan Raja Chulan, 50200 Kuala Lumpur
Business Office
17th Floor, Bangunan AmBank Group
No. 55, Jalan Raja Chulan, 50200 Kuala Lumpur
Tel: 03-2078 2633, 03-2078 2644; Fax: 03-2031 1002
Website: http://www.ambg.com.my
TRUSTEE FOR INF
MALAYSIAN TRUSTEES BERHAD (21666-V)
Registered Office
Level 18, Menara Prudential
No 10, Jalan Sultan Ismail
50250 Kuala Lumpur
Business Office
Level 3, Menara Prudential
No 10, Jalan Sultan Ismail
PO Box 12490
50250 Kuala Lumpur
Tel : 03-2176 1066; Fax : 03-2032 1222
INVESTMENT MANAGER
SBB ASSET MANAGEMENT SDN BHD (217841-M)
Registered Office
18th Floor, MUI Plaza, Jalan P. Ramlee, 50250 Kuala Lumpur
Tel: 03-2147 3241; Fax: 03-2148 3419
Business Office
Level 5, Bangunan Setia 1, No. 15 Lorong Dungun,
Damansara Heights, 50490 Kuala Lumpur
Tel: 03-2084 5000; Fax: 03-2084 5001
INVESTMENT COMMITTEE
Professor Dr Sieh Lee Mei Ling (Independent)
Professor Dr Mahani Zainal Abidin (Independent)
Tan Sri Dato' (Dr) R.V. Navaratnam (Independent)
Tan Sri Osman S. Cassim
YM Raja Puan Sri Dato’ Noora Ashikin Bte Raja Abdullah
Dato' Dr Yahya Bin Ismail
SYARIAH ADVISER
ISLAMIC BANKING AND FINANCE INSTITUTE
MALAYSIA SDN BHD (340040-M)
Registered Office
14th Floor, Darul Takaful
Jalan Sultan Ismail
50250 Kuala Lumpur
Business Office
Wisma BIM (Wisma Zelan)
No. 1B, Jalan Tasik Permaisuri 2/106
Bandar Tun Razak, 56000 Kuala Lumpur
Tel: (603) 9171 1001; Fax : (603) 9171 4857
5
2. DIRECTORY
SECRETARY
Foo Choy Leng
MAICSA No : 0859798
C-7-12 Prima Setapak Condominium
No. 2 Jalan Prima Setapak 5
Off Jalan Genting Klang
53300 Kuala Lumpur
BANKER
Malayan Banking Berhad (3813K)
Kuala Lumpur Main Office
Menara Maybank
100 Jalan Tun Perak
50050 Kuala Lumpur
TAX ADVISER FOR DGF, ECO,
SF, HGF, DALI, MIZAN,
SEQUEL, DALI 2, AZAM,
HIKMAH, CRS & EIF
PricewaterhouseCoopers
Taxation Services Sdn Bhd
(464731-M)
11th Floor Wisma Sime Darby
Jalan Raja Laut
P.O.Box 10192
50706 Kuala Lumpur
AUDITORS & REPORTING ACCOUNTANTS FOR
DGF, ECO, SF, HGF, DALI, MIZAN, SEQUEL, DALI 2,
AZAM, HIKMAH, CRS & EIF
PricewaterhouseCoopers (AF-1146)
11th Floor Wisma Sime Darby
Jalan Raja Laut
P.O.Box 10192
50706 Kuala Lumpur
TAX ADVISER FOR BOF, INF,
PCF, RBF & CIF
Deloitte KassimChan Tax Services
Sdn Bhd (36421-T)
Level 16, Uptown 1
1 Jalan SS 21/58
Damansara Uptown
47400 Petaling Jaya
Selangor Darul Ehsan
AUDITORS & REPORTING ACCOUNTANTS FOR
BOF, INF, PCF, RBF & CIF
Deloitte KassimChan (AF 0080)
Level 19, Uptown 1
1 Jalan SS 21/58
Damansara Uptown
47400 Petaling Jaya
SOLICITORS
Messrs. Jeff Leong, Poon & Wong
Advocates & Solicitors
A-11-3A, Level 11
Megan Avenue II
Jalan Yap Kwan Seng
50450 Kuala Lumpur
AUDITORS AND REPORTING ACCOUNTANTS FOR
SBB MUTUAL BERHAD
Deloitte KassimChan (AF 0080)
Level 19, Uptown 1
1 Jalan SS 21/58
Damansara Uptown
47400 Petaling Jaya
6
3. KEY DATA OF THE FUNDS
FUNDS’ INFORMATION
Funds
Information
DGF
ECO
SF
Category of
Fund
Equity
Equity (Small Cap)
Balanced
Type of Fund
Growth
Growth
Growth and Income
Investment
Objective
To achieve capital
appreciation over the
medium to long term
through all types of
investments that have the
potential for above
average growth over time.
To achieve long term high
capital growth through
investments in emerging
companies with market
capitalisation of up to
RM1,250,000,000 (Ringgit
Malaysia One Billion Two
Hundred and Fifty Million)
each at the point of purchase.
To seek long term
growth in capital and
income by investing in
all types of
investments.
Investment
Strategy
The strategy will be to
invest up to a maximum of
98% in equities.
The strategy will be to invest
in securities of such emerging
companies with strong
potential growth and handson management policies but
lacking in track records. The
Fund currently invests up to
10% of its NAV in emerging
companies predominantly in
Asia whereas the other 90%
is invested locally in
Malaysia.
Being a balanced
Fund, the strategy will
be to invest up to a
maximum of 60% in
equities and the
remainder in fixed
income securities with
at least 2% in liquid
assets.
Principal Risks
•
•
•
Market Risk
Stock Specific Risk
Currency Risk - Since
the Fund invests in the
foreign market, it may
be exposed to
currency fluctuation
risk whereby the
fluctuation in foreign
exchange rates will
have an impact on the
income of the Fund.
(Refer to page 26 for
more details)
•
•
•
Market Risk
Stock Specific Risk
Currency Risk - Since the
Fund invests in the
foreign market, it may be
exposed to currency
fluctuation risk whereby
the fluctuation in foreign
exchange rates will have
an impact on the income
of the Fund.
(Refer to page 26 for more
details)
•
•
7
Market Risk
Stock Specific
Risk
•
Credit Risk
•
Interest Rate Risk
•
Liquidity Risk
more details)
Funds
Information
DGF
ECO
SF
Investor Profile
You should be a long-term
investor with an
investment time horizon of
more than 5 years, and
seek capital appreciation
with dividend income
being secondary. You are
willing to take moderate
risks in pursuit of
potentially better returns.
You are an investor who
looks for high capital gains
through small companies that
offer high growth potential.
You would be willing to take
higher risks for potentially
higher returns in your
investments.
You look for
distribution whether in
the form of capital
gains or dividends.
You tend to be more
conservative in terms
of investment.
Approved Size
of the Funds
(units)
750,000,000
700,000,000
700,000,000
Units in
circulation (as at
5 January 2004)
456,494,000
568,853,000
468,011,000
Financial Year
End
30 April
30 June
31 August
8
Funds
Information
HGF
DALI
BOF
Category of Fund
Equity
Equity (Islamic)
Bond
Type of Fund
Aggressive Growth
Growth
Income
Investment
Objective
To achieve maximum
capital appreciation over
the long term through all
types of investments.
To achieve consistent
capital growth over
the medium to long
term.
To provide investors with an
opportunity to gain higher
than average income over the
medium to long term by
investing in a diversified
portfolio consisting
principally of bonds,
certificates of deposit, short
term money market
instruments and other
permissible instruments.
Investment
Strategy
invest up to a maximum
of 98% in equities.
invest in permissible
investments in
accordance with
applicable Syariah
Principles and
regulatory policies.
The strategy will be to invest
in a diversified portfolio
consisting principally of
bonds, certificates of deposit,
short-term money market
instruments and other
permissible instruments.
Principal Risks
•
•
•
Market Risk
Stock Specific Risk
Liquidity Risk
more details)
•
•
Market Risk
Stock Specific
Risk
•
Liquidity Risk
more details)
•
•
•
•
Investor Profile
looks for maximum
capital appreciation and
do not expect to receive
distributions. You are
willing to take higher
risks in anticipation of
potentially higher returns.
You are sensitive to
Syariah requirements
and seek to achieve
medium to long-term
a portfolio of
investments that
adhere to the Syariah
Principles.
You are cautious about taking
higher risks and seek regular
income through investments
in a portfolio of fixed-income
securities.
Approved Size of
the Funds (units)
1,000,000,000
1,200,000,000
700,000,000
Units in
circulation (as at
5 January 2004)
697,469,000
779,594,000
86,123,000
Financial Year
End
31 October
31 May
31 July
9
Market Risk
Credit Risk
Interest Rate Risk
Liquidity Risk
details)
Funds Information
INF
MIZAN
SEQUEL
Category of Fund
Equity
Balanced (Islamic)
Equity
Type of Fund
Index-Tracking
Growth and Income
Aggressive Growth
Investment
Objective
To achieve medium to
long term capital
appreciation by seeking
to match the
performance of the
KLCI
To achieve medium to
long term growth in both
capital and income by
investing in permissible
Syariah investments.
To achieve maximum
capital appreciation over
the long term through all
types of investments.
Investment
Strategy
invest up to a maximum
of 99.5% of the Fund’s
NAV in equities which
make up the components
of the KLCI.
invest up to a maximum of
60% in equities and the
remainder in fixed income
securities and liquid
assets.
The strategy of the Fund
will be to invest up to a
maximum of 98% in
equities.
Principal Risks
•
•
•
Market Risk
Stock Specific Risk
Liquidity Risk
more details)
•
•
•
•
Market Risk
Stock Specific Risk
Credit Risk
Liquidity Risk
details)
•
•
•
•
•
Investor Profile
has a medium to highrisk profile and would
like to match the
performance of the
KLCI.
looks for a balance of both
regular distributions.
looks for maximum
do not expect to receive
distributions. You are
willing to take higher
risks in anticipation of
higher returns.
Approved Size of 500,000,000
the Funds (units)
1,000,000,000
500,000,000
Units in circulation 195,831,000
(as at 5 January
2004)
502,586,000
239,940,000
Financial Year End
30 September
30 September
30 September
10
Market Risk
Stock Specific Risk
Credit Risk
Interest Rate Risk
Liquidity Risk
more details)
Funds Information
PCF
RBF
CIF
Category of Fund
Equity
Balanced
Equity
Type of Fund
Growth
Growth and Income
Index-Tracking
Investment Objective
To maximise capital
growth over the
medium to long term
through the stock
market.
To match the
To grow the value of
investment over the long performance of the KLCI
as closely as possible.
term through a
diversified portfolio with
equity and fixed income
securities
Investment Strategy
invest in the equity
market with the
emphasis on the main
board stocks.
maintain a balanced
portfolio between
equities and fixed
income investments
invest in equity securities
of companies that
compose the KLCI and
other instruments that are
based on the value of the
index. At least 90% of the
Fund will be invested in
equities listed on the
KLCI.
Principal Risks
•
•
Market Risk
Stock Specific
Risk
•
Liquidity Risk
more details)
•
•
•
•
•
Market Risk
Stock Specific Risk
Credit Risk
Interest Rate Risk
Liquidity Risk
more details)
•
•
•
Investor Profile
You are comfortable
with a higher than
average degree of
volatility in order to
achieve medium term
returns.
You seek stable returns
for the medium to long
term.
You want to take a long
term view of the market
and have exposure in a
fund which aims to track
the KLCI.
Approved Size of the 1,000,000,000
Funds (units)
500,000,000
200,000,000
Units in circulation 462,973,000
(as at 5 January 2004)
219,085,000
116,902,000
Financial Year End
31 March
30 September
30 June
11
Market Risk
Stock Specific Risk
Liquidity Risk
more details)
Funds
Information
DALI 2
AZAM
HIKMAH
Category of
Fund
Equity (Islamic)
Equity (Islamic Small Cap)
Equity (Islamic)
Type of Fund
Growth
Growth
Growth
Investment
Objective
To achieve a consistent
capital growth over the
medium to long-term.
The objective of the Fund is
to seek medium to long
term growth in capital by
investing principally in
emerging companies with
market capitalisation of up
to RM750,000,000 (Ringgit
Malaysia Seven Hundred
and Fifty Million) each at
point of purchase and this
must be in accordance with
the Syariah Principles.
To achieve long term capital
appreciation by investing
principally in selected
component stocks of the
KLSI.
Investment
Strategy
invest in permissible
investments according
to applicable Syariah
Principles and
The investment strategy of
the Fund is to seek medium
to long term growth in
capital mainly through
investments in equities of
emerging companies in
accordance with the
Syariah Principles.
The main strategy of
HIKMAH is to seek longterm growth in capital,
principally through
investments in component
stocks of the KLSI.
Principal
Risks
•
•
•
Market Risk
Stock Specific Risk
Liquidity Risk
more details)
•
•
•
Market Risk
Stock Specific Risk
Liquidity Risk
details)
•
•
•
Investor
Profile
You are sensitive to
Syariah requirements
and seek to achieve
medium to long-term
a portfolio of
investments that adhere
to the Syariah
Principles.
looks for high capital gains
through emerging
companies that offer high
growth potential. You
would be willing to take
higher risks for potentially
higher returns in your
investments. You are also
an investor who requires
your investments to be
made in permitted
investments that are
compliant with Syariah
Principles.
seeks primarily capital
appreciation in the medium to
long term. You are
comfortable with the
performance and price
volatility of component
stocks with large market
capitalisation in the KLSI,
and thus willing to take a less
risky approach or rather
moderate risk in investing.
You are also an investor who
is sensitive to Syariah
requirements and investments
in ‘halal’ counters.
12
Market Risk
Stock Specific Risk
Liquidity Risk
details)
Funds
Information
DALI 2
AZAM
HIKMAH
Approved Size
of the Funds
(units)
500,000,000
500,000,000
500,000,000
Units in
circulation (as
at 5 January
2004)
78,561,000
272,212,000
23,568,000
31 May
31 January
Financial Year 31 May
End
13
Funds Information
CRS
EIF
Category of Fund
Equity
Equity
Type of Fund
Growth
Income
Investment Objective
To provide investors with
long-term capital growth by
investing
principally
in
equities. The Fund also seeks
to outperform the KLCI
benchmark.
To provide investors with an
opportunity to gain consistent and
stable income by investing in a
diversified portfolio of dividend
yielding equities and fixed income
securities. The Fund may also
provide moderate capital growth
potential over a medium to long
term period.
Investment Strategy
The majority of the Fund’s
assets with a minimum of 70%
will be invested in equities.
Liquid
Assets
may
be
strategically used if the Fund
Manager feels that the market
downside risk is high in the
short term.
•
Market Risk
•
Stock Specific Risk
details)
To invest in a diversified portfolio
of mainly dividend yielding
equities
and
fixed
income
securities.
Suitable for investors who
look for consistent capital
returns in a fund that invests
primarily in Malaysian
equities.
Suitable for investors who look for
stable income through equities that
offer stable income and growth
potential, and are willing to take
moderate risks for potentially
moderate capital returns from their
investment.
Principal Risks
Investor Profile
Market Risk
Stock Specific Risk
(Refer to page 26 for more details)
•
•
Approved Size of the 500,000,000
Funds (units)
300,000,000
Units in circulation (as
at 5 January 2004)
331,956,000
62,668,000
Financial Year End
30 November
31 January
Please refer to “The Funds in Detail” section on page 30 for more information.
14
CHARGES, FEES & EXPENSES
This table describes the charges that you may incur when you buy or sell units of each Fund.
Types of charges
No.
Fund
Sales charge
per unit
(% of the NAV)
1.
DGF
6.50%
2.
ECO
6.50%
3.
SF
6.50%
4.
HGF
6.50%
5.
DALI
6.50%
6.
BOF
2.00%
7.
INF
6.50%
8.
MIZAN
6.50%
9.
SEQUEL
6.50%
10.
PCF
6.50%
11.
RBF
6.50%
12.
CIF
6.00%
13.
DALI 2
6.50%
14.
AZAM
6.50%
15.
HIKMAH
6.50%
16.
CRS
6.50%
17.
EIF
6.50%
Redemption
charge per
unit
Nil
15
Transaction cost
factor
Any other charges
payable directly by the
investor when
purchasing or
redeeming the units
Autodebit/
Standing
Instruction (Refer
to page 101 for
details)
Switching fee of RM100
per transaction for
switches more than
twice a year. (Refer to
page 108 for details)
The section below describes the fees and expenses that you may incur when you invest in the units of
each Fund.
Fees and Expenses
No.
Fund
Trustee
Note 1
Annual
Management
Fee % p.a.
Note 1
Annual Trustee Fee
% p.a.
Custodian fee
1.
DGF
ARB
1.50%
0.08%
Note 2
2.
ECO
UTMB
1.50%
Note 3
Note 2
3.
SF
UTMB
1.50%
Note 3
RM20,000 p.a.
4.
HGF
UTMB
1.50%
Note 3
RM20,000 p.a.
5.
DALI
AmTB
1.50%
0.08%
Nil
6.
BOF
AmTB
0.95%
0.08%; minimum
RM30,000 p.a.
Nil
7.
INF
MTB
1.00%
0.08%
Nil
8.
MIZAN
UTMB
1.50%
Nil
9.
SEQUEL
UTMB
1.50%
0.10%; minimum
RM35,000 p.a.
0.10%; minimum
RM35,000 p.a.
10.
PCF #
UTMB
1.50%
Note 3
# RM25,000 p.a.
11.
RBF #
UTMB
1.50%
0.08% or RM30,000
p.a.; whichever is
higher
# RM20,000 p.a.
12.
CIF #
UTMB
0.95%
0.08%
# Nil
13.
DALI 2
UTMB
1.85%
Nil
14.
AZAM
UTMB
1.85%
15.
HIKMAH
UTMB
1.85%
16.
CRS
UTMB
1.85%
17.
EIF
UTMB
1.85%
0.06%; minimum
RM18,000 p.a.
0.06%; minimum
RM18,000 p.a.
0.06%; minimum
RM18,000 p.a.
0.06%; minimum
RM18,000 p.a.
0.06%; minimum
RM18,000 p.a.
Nil
Nil
Nil
Other Fund Expenses
Applicable to all Funds
•
•
•
•
•
•
•
•
Audit Fee
Tax Agent’s Fee
Printing &
Stationery
Bank charges
CDS Account
Opening & Transfer
fees
Investment
committee fee for
independent
members
Lodgement fee for
annual reports
Other expenses as
permitted by the
Deed
Additional fee applicable
to only MIZAN, DALI
2, AZAM and HIKMAH
•
Syariah adviser’s
fee borne equally
between the
Manager and the
Fund
Nil
Nil
# For PCF, RBF and CIF, UTMB is also entitled for reimbursement of all reasonable costs and expenses
incurred in respect of the Fund
Note 1 - Annual management fee and annual trustee fee are calculated daily based on the NAV of the
Fund
Note 2 - Foreign custodian fee (for DGF and ECO)
The foreign custodian fee is 0.125% of the NAV of the foreign portfolio charged monthly in
arrears and subject to a minimum of SGD1,800 per month, SGD30 per transaction as in
transaction fee and out of pocket expenses.
Local custodian fee (for ECO only)
UTMB is entitled to a custodian fee of 0.04% of the market value of the local securities
portfolio calculated on a daily basis and subject to a minimum of RM40,000 p.a.
16
Note 3 - The rates used for the computation of the annual trustee fee are as follows:
Size of the Fund
First RM20 million
Next RM20 million
Next RM20 million
Next RM20 million
Next RM20 million
Any amount in excess of RM100 million
% of NAV of the Fund p.a.
0.06%
0.05%
0.04%
0.03%
0.02%
0.01%
Transfer Fee
You are entitled to transfer (either fully or partially) the units registered in your name to another person
in the form as approved by the Manager.
However, you are required to maintain a minimum holding in order to maintain an account with the
Manager. (Please refer to pages 18 to 21 and 107 for further details)
For each transfer, a fee of RM3.00 is charged by the Manager. However, this has been waived for all the
Funds.
Switching Fee
An investor is entitled to two free switches out of a Fund in every calender year. The Manager will
charge RM100 for each subsequent switch (please refer to page 108 for details).
There are fees and charges involved and investors are advised to consider the fees and charges
before investing in the Funds.
17
TRANSACTIONS
Transaction
DGF
ECO
SF
HGF
DALI
Minimum initial investment
(inclusive of applicable Sales
Charge)
RM100
RM1,000
RM1,000
RM1,000
RM500
Minimum additional investment
Charge)
RM100
RM500
RM100
RM500
RM50
500 units
500 units
None
Minimum redemption amount
Minimum holding requirement
Period for payment of
redemption monies
100 units
500 units
Within ten (10) days from the receipt by the Manager of your
redemption request.
None
Restriction on the frequency of
redemption
Cooling –off period
Switching and transfer facility
Yes for qualifying investors, within six (6) Business Days from
receipt of the application form by the Manager (please refer to
page 104 for more details)
Yes (please refer to page 108 and 109 for more details)
None
Exit and re-entry option
Distribution re-investment option
500 units
Yes (please refer to page 23 for more details)
18
Transaction
Charge)
Charge)
BOF
INF
MIZAN
SEQUEL
PCF
RM2,000
RM1,000
RM1,000
RM1,000
RM1,000
RM500
RM200
RM200
RM200
RM100
1,000 units
1,000 units
RM1,000
2,000 units
redemption monies
None
1,000 units
redemption request.
None
redemption
receipt of the application form by the Manager (please refer to page
104 for more details)
None
Distribution re-investment
option
2,000 units
19
Transaction
Charge)
Minimum additional
investment (inclusive of
applicable Sales Charge)
RBF
CIF
AZAM
HIKMAH
DALI 2
RM1,000
RM1,000
RM1,000
RM1,000
RM1,000
RM100
RM100
RM200
RM200
RM200
2,000 units
1,000 units
None
redemption monies
1,000 units
1,000 units
redemption request.
None
redemption
receipt of the application form by the Manager (please refer to page
104 for more details)
None
Distribution re-investment
option
2,000 units
20
Transaction
Charge)
Charge)
CRS
EIF
RM1,000
RM1,000
RM200
RM200
None
redemption monies
2,000 units
redemption request.
None
redemption
Cooling – off period
receipt of the application form by the Manager (please refer to
page 104 for more details)
None
Distribution re-investment option
1,000 units
21
DISTRIBUTION POLICY
Total returns of a Fund may encompass both income and capital gains/losses:
•
income in the form of dividend and interest from investments; and
•
capital gains/losses from disposal of investments
Distributions may be made out of the distributable income of the Fund at the discretion of the Manager.
Once a distribution is made, the total NAV and NAV per unit will decrease by the amount of distribution
accordingly.
See below for illustration of the impact of distribution on the NAV per Unit
Assuming the Fund makes a distribution of 10 sen per unit
Note: ignore tax implications for simplicity.
Before distribution
Distribution
After distribution
RM million
RM million
RM million
Assets
(a)
120
10
110
Less : Liabilities
(b)
(20)
-
(20)
NAV
(c) = (a)-(b)
100
10
90
Units in circulation
(Million units)
(d)
100
100
100
NAV per unit (RM)
(e) = (c)/(d)
1.0000
0.1000
0.9000
22
Would there be regular distribution?
The Manager has the discretion to distribute a part or all of the respective Fund’s distributable income
except for INF and CIF. However, for BOF and EIF, any available income and realised gains will be
distributed consistent with the objective of the Fund.
The distribution of the Funds (if any) may vary from period to period depending on the investment
objective and the performance of the Fund.
Reinvestment of Distributions
Distribution cheques not presented for payment within 6 months from the date of the cheque will be
reinvested into additional units of the relevant Fund based on the prevailing NAV.
Prospective Unitholders should read and understand the contents of the Master Prospectus and,
if necessary, consult their adviser(s).
Unit prices and distributions payable, if any, may go down as well as up.
23
4. INTRODUCTION TO UNIT TRUST INVESTMENTS
THE BASICS
Introduction to Unit Trusts - What is a Unit Trust?
A unit trust fund is a collective investment scheme, which pools the savings of investors with similar
investment objectives in a special “trust” fund managed by professional fund managers. The fund will
then be invested in a diversified portfolio of equities, fixed income securities and other assets in
accordance with the fund’s investment objectives and as permitted under the Guidelines.
The organisation of a unit trust fund is a tripartite relationship between the manager, the trustee and the
unitholders. The obligations and rights of each of the three parties are specified in the deed, a legal
document entered into between the manager and the trustee and registered with the SC. The deed is
designed to govern the operations of the fund and protect the unitholders’ interest. The manager is
responsible for the management and operations of the fund whilst the trustee holds all the assets of the
fund.
Mode of Operation
(Governed by the Deed)
Unitholders
to invest in the fund
Trustee
Manager
to safeguard the
assets of the fund
to administer the
operations of the
fund
Unit Trust
Fund
Invest
(Permitted Investments)
Malaysian
Government
Securities,
Government
Investment
Certificates,
Treasury Bills
Securities listed
on the
local/foreign
stock exchanges
Cagamas Bonds,
Bankers’
Acceptances,
Unlisted Loan
Stocks, Corporate
Bonds
Negotiable
Certificates of
Deposits,
money at call,
deposits with
financial
institutions
Possible Capital Gains & Distributions
24
Any other
investments
as approved
by the
Securities
Commission
REGULATORY FRAMEWORK
The SC was established pursuant to the SCA. Section 15(1)(e) of the SCA stipulates that amongst the
functions of the SC, the SC shall regulate all matters relating to unit trust schemes. The SC has
formulated the Guidelines to govern the operation and administration of unit trust schemes. The SCA and
the Guidelines have been established with the objective of providing a regulatory environment that would
protect the interests of the investing public and facilitate the orderly development of the unit trust
industry. All parties involved in unit trust schemes must comply with the SCA and Guidelines including
all relevant legislation.
As part of the SC Requirements, the appointment of the Manager, its Directors, Chief Executive Officer,
Investment Committee members, the Trustee and Syariah Committee Members/Advisers must be, and
have been, approved by the SC.
THE BENEFITS
How can you benefit from investing in Unit Trusts?
Unit trusts provide unitholders with a simple, convenient and less time-consuming method of investing in
securities as compared to investing directly in the stock market or any other Eligible Market. Unitholders
are able to benefit from the expertise of full-time professional fund managers without the need to worry
about the kind of stocks to buy and when to get in and out of the market. By investing in unit trusts,
investors have the opportunity to spread their money over a diversified portfolio of assets which
otherwise may not be possible on their own. There are also potential risks involved and these are
itemised on page 26.
Why would you want to invest in Unit Trusts?
Listed below are the benefits associated with unit trust funds:
1. Professional Investment Services
You have full-time professional fund managers to manage your investments for you. Investment
decisions are backed by extensive research, market analysis and vigilant monitoring of the economic
and market environment. The fund manager has the requisite expertise, experience and qualitative
tools to manage and maintain such services whereas as an individual investor, you may not have the
benefit of such skills to make a fully informed decision if you are investing on your own directly into
the capital markets.
2. Diversification Opportunities & Minimised Risks
Investing in unit trust funds provides you with the opportunity to spread your money over a
diversified portfolio of assets which otherwise may not be possible for investors with small capital. A
unit trust fund facilitates the diversification process as it provides small investors with an avenue to
pool their savings for the purchase of a diversified portfolio of stocks and bonds that will potentially
bring returns with lesser risks than when investing directly in the KLSE or any other Eligible Market.
3. Affordable
As the minimum initial investment amount in most unit trust funds is relatively low, they are
affordable as compared with direct investment in securities, with the added benefits of diversification
and access to professional investment services as outlined in paragraphs 1 and 2 above. As an
investor, you can choose to invest in unit trusts that fit your risk profile and financial requirements.
4. Convenience
You can rid yourself of the unnecessary stress and paperwork that come with managing your own
stocks and shares or bonds portfolio, keeping track of your contract notes, share certificates, rights
and bonus issues and so on. It is very easy to purchase or sell back your units at any of the Manager’s
or agent’s offices. On top of this, the Manager will send the fund’s interim and annual reports to keep
you informed on the performance of the fund.
25
5. Liquidity
Unlike your investments in fixed assets such as land and properties which will take a relatively
longer time to liquidate, you may sell all or part of your unitholdings to the manager on any Business
Day, making it easy to withdraw your money.
THE POTENTIAL RISKS
What kind of risks are you taking?
Any investment carries with it an element of risk. Therefore, prior to making an investment, prospective
investors should consider the following risk factors in addition to the other information set out elsewhere
in this Master Prospectus.
1. Returns Not Guaranteed
The Manager would not be in a position to guarantee distribution, capital appreciation or investment
returns to the unitholders or that the investment objectives of the fund will be achieved. By investing
in a wide range of securities, the Manager attempts to balance this risk with the investment rewards.
2. Manager’s Risk
The performance of any unit trust fund is dependent amongst others on the experience, knowledge,
expertise and investment techniques adopted by the Investment Manager and any lack of the above
would negatively impact on the funds’ performance thereby working to the detriment of the
Unitholders.
3. Loan Financing Risk
If you obtain a loan to finance your purchase of units, you need to understand that:
• borrowing increases the possibility for gains as well as losses;
• if the value of your investment falls below a certain level, you may be asked by the financial
institution to top up the collateral or reduce the outstanding loan amount to the required level;
• your ability to pay your loan instalments may be affected by unforeseen circumstances in the
future such as loss of employment.
(The Unit Trust Loan Financing Risk Disclosure Statement Form annexed as Appendix 1 hereto sets
out the risks in detail).
4. Risk of Non-Compliance
This refers to the current and prospective risk to the Funds and unitholders' interest arising from nonconformance with laws, rules, regulations, prescribed practices and internal policies and procedures
by the Manager. Risk of non-compliance can lead to diminished reputation, reduced franchise value,
limited business opportunities and reduced expansion potential for the company. Non-compliance
may result in a fall to the value of the unit trust funds which in turn may affect unitholders'
investment goals. However, the risk can be mitigated by the internal controls and compliance
monitoring undertaken by the Manager.
5. Currency Risk
Where a percentage of the value of a fund is invested in foreign currency or assets denominated in a
foreign currency, the fund may be exposed to currency fluctuation risks. Fluctuation in foreign
exchange rates will have an impact on the income of the Fund. The currency fluctuation risk is
managed by adhering to the prescribed percentage of investment allowed in foreign securities.
6. Country Risk
The investments may be affected by the political and economic conditions of the country in which
the investments are made. Such political and economic factors may influence the growth and
development of business and have an adverse impact on the prices of shares of listed companies.
However, this risk may be mitigated through prudent diversification of equity investments across
different countries.
26
The potential risks associated with funds that invest in equities can be analysed as follows:
7. Market Risk
Any purchase of equities will involve an element of risk. As unit trust funds principally invest in
listed stocks, they may be prone to changing market conditions as a result of global, regional or
national economic conditions, governmental policies or political developments. That is why investors
are exposed to market uncertainties and fluctuation in the market caused by these uncertainties will
affect the market price of unit trust funds which may fall or rise, thus causing the income generated
by the fund to fluctuate.
8. Stock Specific Risk
Any irregular fluctuation in the value of a particular stock may affect the unit price in a fund. This
impact is however minimised where the fund invests in a wide portfolio of investments, thus
spreading the element of risk.
9. Liquidity Risk
Liquidity risk is the risk that the securities invested in cannot be readily sold and converted into cash.
This may occur when the trading volume is low and/or where there is a lack of demand for the
security. If a unit trust fund has a large portfolio of stocks issued by smaller companies, the relative
illiquidity of these stocks can cause the value of the fund to fall because there are generally less ready
buyers of such stocks as compared with the stocks of larger and more established companies.
Liquidity risk is limited by exercising prudence in the selection of stocks and diversification.
The potential risks associated with funds that invest in debentures can be analysed as follows:
10. Credit Risk
A fund may be exposed to the credit or default risk of an issuer of debentures that the fund invests in,
in particular bonds and private debt securities. These particular issuers may incur difficulty in
making full and timely repayments of principal and interest which may lead to a default in the
payment of principal and interest and ultimately, a fall in the value of the fund.
11. Interest Rate Risk
Interest rate risk is inherent in investments of a fund in debentures, especially for bond or fixed
income funds. Interest rate fluctuations may be attributed to market risks that affect the level of risk
free rate. Prices of bonds move inversely with interest rates and would fall in a period of rising
interest rates. Investors will suffer capital losses when interest rates rise, resulting in a fall in bond
prices. Interest rate risk is particularly high for long term bonds, and tends to be lower for short term
bonds. Interest rate risk is a general economic indicator that will impact on the management of a fund
regardless of whether it is a Syariah-based fund or otherwise. It does not in any way suggest that
Syariah-based funds will invest in fixed income/debt securities, which are not Syariah approved. All
the investments for Syariah-based funds accord with the Syariah principles, the latter being derived
from the sources of Islamic jurisprudence namely the Quran, the Sunnah, the Ijma’ and the Qiyas.
Managing Risks For The Funds
The Manager will take reasonable steps to ensure that the above potential risks are managed by
constructing an efficient portfolio of assets as diversification reduces the risk significantly as compared to
investing in one or two companies or type of securities or instruments only. In addition, the Investment
Manager will seek to reduce these risks by virtue of its experience, the analytical process adopted by its
fund managers and by structuring a broadly diversified investment pool.
27
Comparison between investing in unit trusts and investment in stocks
An investor who invests in unit trust funds stands to benefit from a diversified portfolio of assets with
just a minimal investment amount, which may otherwise not be possible if he or she invests directly in
the stock market with the same amount of investment. The exposure of the investment to overall market
risk is minimised owing to diversification. The investor may also stand to benefit from ringgit cost
averaging by investing additional amounts in a fund regularly over the long term and in this way need not
worry about market timing. (However, it should be noted that ringgit cost averaging does not guarantee a
better return of investment in a fund).
Comparison between investing in unit trusts and investment in bank deposits
An investor who invests in unit trust funds may potentially benefit from a higher rate of return. In a low
interest rate environment, investment in a unit trust may fetch a better rate of return than by depositing all
the monies in the bank. Although the underlying risks of investing in unit trust are higher, the overall risk
is minimised through diversification.
Typical Unit Trust Investor Profile
An investor investing in unit trust funds would be someone who seeks a cost efficient way to diversify or
spread his or her investment risk and to access markets and investments which he or she may not be able
to access through direct personal investment. At the same time, the investor understands and accepts the
potential risks associated with investments in unit trust funds which may bring benefits and possible
returns.
Charges, Fees and Expenses
Charges may be imposed directly on the purchase (sales charges) or redemption (redemption charges) of
units in a unit trust fund, as well as on any switching facility or transfer of the units. Unit trust funds are
typically subject to management fees and trustee fees of the management company and trustee
respectively. Other expenses of unit trust funds may include brokerage, transaction costs, custodian fees,
valuation fees, audit fees and other expenses related to the operation of the fund and allowed under the
deed for the relevant fund. Only the expenses that are directly related and necessary to the business of a
fund and allowed under the deed are payable or reimbursable out of the fund’s assets.
Management Expense Ratio (MER)
MER is the ratio of the sum of the fees and the recovered expenses of the unit trust scheme to the average
value of the unit trust scheme, calculated on a daily basis. The MER reflects the level of fees and
expenses incurred by the Fund during the time your money is invested in the fund. The MER takes into
account expenses paid directly from the fund and is made up of 3 components – manager’s fees, trustee’s
fees and the expenses permitted by the deed relating to the fund incurred in the administration and
investment of the fund. The higher the ratio, the more expenses are incurred by the fund. The lower the
MER, the more beneficial it is to the investor. A lower MER is also an indicator of how well the manager
is managing the expenses of the fund.
28
Understanding the Performance Indicators
Performance data of a unit trust fund can be calculated over a variety of daily, weekly, monthly, and
yearly time periods or over any time range. The performance of a unit trust fund over a specific time
period can be measured and assessed using one or more of the following performance indicators:• Change in total Net Asset Value - A measurement of the change, usually in percentage, in a fund's
total net asset value over the specific time period, taking into account the effects of any income
distribution to unit holders during the same period.
• Total Returns - A measurement of the returns of the unit trust fund including interest and dividend
income earned from securities holding and gains/losses from disposal of securities held by the fund.
The total returns over a specific time period can be measured and compared with the total returns
over another time period.
• Unit Price - A comparison of the net asset value per unit of the unit trust fund between two specific
points in time. However, this comparison alone is not accurate as it does not take into account the
effect of events such as income distribution to unit holders or unit split over the time period that
reduces the net asset value per unit.
• Comparison with Benchmark – Where a unit trust fund has adopted a benchmark, the performance of
the fund would also be measured against the selected benchmark, generally in terms of the
percentage change of the total net asset value of the fund’s underlying assets over a specific time
period, and compared with the percentage change in the value of the benchmark over the same time
period.
The change in the total NAV, Total Returns and Comparison with Benchmark is depicted in various
financial periodicals and some leading newspapers and appears alongside the performance of all unit trust
funds within Malaysia. This comes in the form of a table and is prepared by various independent fundrating companies. The Unit Prices of unit trust funds are published daily by the local newspapers.
29
5. THE FUNDS IN DETAIL
DGF
Investment objective
To achieve capital appreciation over the medium to long term through all types of investments that have
the potential for above average growth over time.
Any material changes to the investment objective of the Fund would require Unitholders’ approval.
Investment strategy
The strategy will be to invest up to a maximum of 98% in equities.
Investment policy
The Fund invests primarily in equities, with a bias towards growth stocks that have the potential to
deliver long-term capital appreciation. To a lesser extent, it invests in fixed income securities primarily
for the purpose of cash management.
The type and characteristics of the securities/instruments including risks associated with such
securities/instruments
The primary risks associated with equity investments is market, liquidity and stock specific risks, while
investment in fixed income securities would introduce credit, liquidity and interest rate risks. As the Fund
also invests in foreign securities, it will be exposed to currency exchange and external political risks as
well. The nature of such risks is explained on page 26.
The Investment Manager’s asset allocation strategy
Up to 98% of the Fund will be invested in equities, and at least 2% in Liquid Assets. The asset allocation
will be reviewed periodically depending on the country’s economic and stock market outlook. In a rising
market, this 98% limit may be breached, however the Manager will seek to adjust this within a time
frame approved by the Trustee.
Performance Benchmark
KLCI
The risk management strategies and techniques to be employed by the Investment Manager
Asset mix - The Fund will manage exposure to market risk primarily by adjusting the portfolio mix of
equities, fixed income instruments and cash. An overweight exposure to equities would denote a bullish
market outlook for this class of asset and vice versa.
Securities selection - The Fund will invest in a diversified portfolio of value, growth and defensive stocks
and high quality fixed income securities. This is to reduce the risk associated with liquidity and nonsystemic risk. For fixed income securities, interest rate risk is managed by adjusting the duration of the
portfolio and credit rating of fixed income securities in the portfolio.
Futures - The Investment Manager may use futures to hedge against market risk as and when deemed
appropriate.
Market selection - For foreign securities, the Investment Manager focuses on investing in the major
established markets for their high liquidity and low political risk. Foreign cash are kept in US Dollar or
Hong Kong Dollar to minimize the exchange rate risk.
30
The Fund’s principal strategy in attempting to respond to adverse market conditions, economic,
political, or any other conditions
The Fund, being an equity fund, would generally maintain a high exposure to equities. During adverse
market, economic, and political conditions, the principal strategy of the Investment Manager would be to
reduce the level of exposure to equities. Where appropriate, futures will be used to adjust the effective
exposure to equities in the portfolio. Meanwhile, during normal conditions, the Investment Manager
would ensure that a portion of the investments is made up of securities which are defensive in nature such
as the large capitalized stocks which are also industry leaders, stocks with high dividend payout, and
fixed income instruments of high quality investment grade. This helps to reduce the volatility in the
portfolio during adverse market conditions.
The bases of valuation of all types of securities/instruments invested
Quoted investments in Malaysia are valued at the last done market price quoted on the KLSE. Quoted
investments outside Malaysia are valued at the latest available market price quoted on the stock exchange
in which they are listed on. The carrying value of the unquoted fixed income securities are carried at cost
and adjusted for amortisation of any premium or accretion of discount over their par values at the time of
acquisition. The carrying value of the unquoted fixed income securities is revalued to reflect its fair value
(current value) using the net present value method.
However, if a valuation based on the market price does not represent the fair value of the securities, for
example during abnormal market conditions or no market price is 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, then the securities are valued as determined in good faith by the Manager, based
on the methods or bases approved by the Trustee after appropriate technical consultation.
Specific and peculiar risks when investing in the Fund
The Fund will be exposed to risks associated with stock market investments which include market risk,
stock specific risk and currency risk. Please refer to page 26 for more details.
Permitted Investments
The Fund may invest in the following investments subject to the Guidelines, SC requirements and in
accordance with the Fund’s objective :
•
Securities traded on the KLSE and/or any other market considered as an Eligible Market;
•
Units/shares of other collective investment schemes with similar objectives;
•
Securities that are not traded in or under the rules of an Eligible Market including unlisted securities
that have been approved by the SC for listing and quotation on either the KLSE or any other market
considered to be an Eligible Market;
•
Warrants and options where options include futures option and exchange-traded options;
•
Malaysian Government Securities, Treasury Bills, BNM Certificates/Bills, Government investments
Certificates, and Cagamas Notes/Bonds;
•
Other obligations issued or guaranteed by the Malaysian Government, BNM, State Governments and
Government-related agencies;
•
Private Debt Securities, loan stocks and corporate bonds traded in an Eligible Market;
•
Bankers’ acceptances and other tradeable money-market instruments in the money market;
•
Ringgit-denominated deposits placed with commercial banks, merchant banks and finance
companies;
•
Negotiable Certificates of Deposits, and placements of money-at-call with discount houses;
•
Securities in a foreign market approved by the SC and subject to BNM’s approval on capital flows;
•
Futures contracts for hedging purposes only (excluding futures options and eligible exchange traded
options); and
•
Other investments approved by the SC from time to time.
31
All investments will be subject to the Guidelines, SC Requirements and the Deed, except where
exemptions or variations have been approved by the SC, internal policies and procedures and the Fund’s
objective. The minimum level of Liquid Assets to be maintained by the Fund may be reviewed from time
to time by the Investment Committee and subject to approval by the Trustee. The Fund may not borrow
cash or other assets (including the borrowing of securities within the meaning of the Guidelines on
Securities Borrowing and Lending) in connection with its activities and none of the cash or investments
may be lent except as otherwise provided for in the aforesaid Guidelines.
The investment limits adopted by the Investment Manager for the Fund are as imposed under the
SC Guidelines and are as follows:
The Fund’s holdings of any class of security of any
single issuer
The value of the holdings in the share capital of any
single issuer
The value of the holdings of securities of and the
securities relating to any single issuer
securities relating to any group of companies.
Must not exceed 10% of the security issued
Must not exceed 10% of the NAV of the
Fund
Fund
Should not exceed 20% of the NAV of the
Fund except in cases where the Manager has
received the approval of SC and notified the
Trustee
The value of the holdings in warrants and options
Must not exceed 10% of the Fund’s NAV.
The investment limit refers to the price of the
warrants and the premium of the options.
The value of the holdings of units/shares in Must not exceed 10% of the NAV of the
collective investment schemes
Fund
The value of the holdings in futures contracts
The Fund’s net market exposure owing to its
futures contract positions must not exceed
the Fund’s NAV.
The value of holdings of unlisted securities that are Must not exceed 10% of the NAV of the
not traded in or under the rules of an Eligible Fund
Market
Securities not listed for trading in an Eligible Subject to asset allocation limits and
Market but approved for listing and offered directly restrictions mentioned above relating to
to the Fund by issuer
single issuer and group of companies
A 5% allowance in excess of any limit or restriction may be permitted where the limit or restriction is
breached through the appreciation or depreciation of the NAV of the Fund (whether as a result of an
appreciation or depreciation in the value of the investments, or as a result of redemption of units or
payment made from the Fund).
The Fund will not make any further acquisitions to which the limit is breached, and the Investment
Manager will within a reasonable period of not more than three months from the date of the breach
undertake all necessary steps and actions to rectify the breach.
Currently the Manager invests up to 10% of the NAV of the DGF in foreign securities having obtained
the necessary approvals from BNM and the SC. The Manager may invest beyond this limit provided
approvals are obtained from the above two mentioned parties and this increase will be reflected in the
Master Prospectus (or supplemental if deemed necessary). At this point in time, no approval has been
sought from the relevant authorities.
32
ECO
To achieve long term high capital growth through investments in emerging companies with market
capitalisation of up to RM1,250,000,000 (Ringgit Malaysia One Billion Two Hundred and Fifty Million)
each at the point of purchase.
Investment strategy
The strategy will be to invest in securities of such emerging companies with strong potential growth and
hands-on management policies but lacking in track records.
Investment policy
The Fund invests primarily in equities, with a bias towards stocks in emerging companies which have the
potential to deliver long-term capital appreciation. To a lesser extent, it also invests in fixed income
securities.
The primary risks associated with equity investments are market, liquidity and stock specific risks, while
investment in fixed income securities would introduce credit, liquidity and interest rate risks.
As the Fund also invests in foreign securities, it will be exposed to currency exchange and external
political risk as well. The nature of such risks is explained on page 26.
Up to 98% of the Fund will be invested in securities and other permitted investments and at least 2% in
Liquid Assets. The asset allocation will be reviewed periodically depending on the country's economic
and stock market outlook. In a rising market, this 98% limit may be breached, however the Manager will
seek to adjust this within a time frame approved by the Trustee.
KL EMAS
Asset mix - The Fund will manage exposure to market risk primarily by adjusting the portfolio mix of
equities, fixed income instruments and cash. An overweight exposure to equities would denote a bullish
market outlook for this class of asset and vice versa.
Securities selection - The Fund will invest in a diversified portfolio of value, growth and defensive stocks
and high quality fixed income securities. This is to reduce the risk associated with liquidity and nonsystemic risk. For fixed income securities, interest rate risk is managed by adjusting the duration of the
portfolio and credit rating of fixed income securities in the portfolio.
Futures - The Investment Manager may use futures to hedge against market risk as and when deemed
appropriate.
Market selection - For foreign securities, the Investment Manager focuses on investing in the major
established markets for their high liquidity and low political risk. Foreign cash is kept in US Dollar or
Hong Kong Dollar to minimize the exchange rate risk.
33
The Fund, being an equity fund, would generally maintain a high exposure to equities. During adverse
market, economic, and political conditions, the principal strategy of the Investment Manager is to reduce
the level of exposure to equities. Where appropriate, futures will be used to adjust the effective exposure
to equities in the portfolio. Meanwhile, during normal conditions, the Investment Manager would ensure
that a portion of the investments is made up of securities which are defensive in nature such as the large
capitalized stocks which are also industry leaders, stocks with high dividend payout, and high quality
investment grade fixed income instruments. This helps to reduce volatility in the portfolio during adverse
market conditions.
stock specific risk and currency risk. Please refer to page 26 for more details.
•
•
•
•
•
•
•
•
•
companies;
•
•
•
options); and
•
34
exemptions or variations have been approved by the SC, internal policies and procedures as well as the
Fund’s objective. The minimum level of Liquid Assets to be maintained by the Fund may be reviewed
from time to time by the Investment Committee and subject to approval by the Trustee. The Fund may
not borrow cash or other assets (including the borrowing of securities within the meaning of the
Guidelines on Securities Borrowing and Lending) in connection with its activities and none of the cash or
investments may be lent except as otherwise provided for in the aforesaid Guidelines.
single issuer
single issuer
Must not exceed 10% of the NAV of the Fund
Trustee
The value of the holdings of units/shares in Must not exceed 10% of the NAV of the Fund
futures contract positions must not exceed the
Fund’s NAV.
The value of holdings of unlisted securities that are Must not exceed 10% of the NAV of the Fund
not traded in or under the rules of an Eligible
Market
Market but approved for listing and offered directly restrictions mentioned above relating to single
issuer and group of companies
Currently the Manager invests up to 10% of the NAV of the ECO in foreign securities having obtained
the necessary approvals from BNM and the SC. The Manager may invest beyond this limit provided
approvals are obtained from the above two mentioned parties and this increase will be reflected in the
Master Prospectus (or supplemental if deemed necessary). At this point in time, no approval has been
sought from the relevant authorities.
35
SF
To seek long term growth in capital and income by investing in all types of investments.
Investment strategy
Being a balanced fund, the strategy will be to invest up to a maximum of 60% in equities and the
remainder in fixed income securities with at least 2% in Liquid Assets.
Investment policy
The SF is a balanced fund. It aims to achieve long-term growth by investing primarily in equities and
fixed income securities. The fixed income portion will provide capital protection to the Fund while the
equity portion will provide the added return in a rising market.
The Fund invests principally in equities and fixed income securities. The primary risks associated with
equity investments are stock market and stock specific risks while investment in fixed income securities
will introduce credit and interest rate risks. The nature of such risks is explained on page 26.
Up to 60% of the Fund will be invested in equities and a minimum of 40% will be invested in Liquid
Assets and bonds, of which at least 2% is in Liquid Assets. The asset allocation will be reviewed
periodically depending on the country's economic and stock market outlook. In a rising market, this 60%
limit may be breached, however the Manager will seek to adjust this within a time frame approved by the
Trustee.
60% KLCI + 40% RAM Quantshop MGS All Index. The RAM Quantshop MGS All Index is generated
by an independent fund-rating company and can be found in a fact sheet that we provide monthly to
Unitholders and the public.
The risk management strategies and techniques to be employed by the Investment Manager.
Asset mix – The Investment Manager underweights/overweights equities to ensure consistent
performance over time. This helps to minimize market risks and short-term market volatility.
Stock selection – The Investment Manager is very focused in the stock selection process to ensure the
stocks they buy are justifiable fundamentally and have growth potential over a 2-year period. This helps
to minimise stock risks. In addition, the Investment Manager invests in a portfolio of stocks to ensure
sufficient diversification.
Futures – The Investment Manager may use futures to hedge against market risks as and when deemed
appropriate.
Cash and fixed income securities – The Investment Manager may reduce equity exposure in favour of
cash and fixed income securities in the event the market outlook is not favourable.
In response to adverse market conditions, economic, political or any other conditions, the Investment
Manager will reduce equity exposure in favour of cash/fixed income securities to protect the capital of
the Fund. The Investment Manager may also use futures to hedge against market risks when deemed
appropriate.
36
stock specific risk and liquidity risk while risks associated with fixed income securities include interest
rate risk, credit risk and liquidity risk. Please refer to page 26 for more details.
•
•
•
•
•
•
•
•
•
companies;
•
•
•
options); and
•
37
The Fund’s holdings of any class of security of
any single issuer
The value of the holdings in the share capital of
any single issuer
The value of the holdings of securities of and
the securities relating to any single issuer
The value of the holdings of securities of and
the securities relating to any group of
companies.
The value of the holdings in warrants and
options
The value of the holdings of units/shares in
The value of holdings of unlisted securities that
are not traded in or under the rules of an
Eligible Market
Securities not listed for trading in an Eligible
Market but approved for listing and offered
directly to the Fund by issuer
Should not exceed 20% of the NAV of the Fund
except in cases where the Manager has received
the approval of SC and notified the Trustee
Must not exceed 10% of the Fund’s NAV. The
investment limit refers to the price of the
Fund’s NAV.
Subject to asset allocation limits and restrictions
mentioned above relating to single issuer and
group of companies
From time to time during the term of this Master Prospectus, the Manager may consider to invest assets
of the SF mentioned above in foreign securities provided the relevant approvals are obtained from BNM
and the SC. At this point in time, no approval has been sought from the relevant authorities.
38
HGF
To achieve maximum capital appreciation over the long term through all types of investments.
Investment strategy
The strategy will be to invest up to a maximum of 98% in equities.
Investment policy
The HGF is an equity growth fund. It aims to achieve long-term capital growth by investing primarily in
equities. The Investment Manager overweights equities when underlying conditions are favourable, and
underweights equities in favour of fixed income instruments when conditions deteriorate.
Up to 98% of the Fund will be invested in equities and other permissible investments and at least 2% in
Liquid Assets. The asset allocation will be reviewed periodically depending on the country’s economic
and stock market outlook. In a rising market, the 98% limit may be breached. However the Manager will
KLCI
appropriate.
the Fund. The Investment Manager may also use futures to hedge against market risks when deemed
appropriate.
39
The bases of valuation of all types of securities/instruments invested.
stock specific risk and liquidity risk. Please refer to page 26 for more details.
•
•
•
•
•
•
•
•
•
companies;
•
•
•
options); and
•
40
single issuer
single issuer
The value of the holdings of units/shares in collective
investment schemes
The value of holdings of unlisted securities that are
not traded in or under the rules of an Eligible Market
Securities not listed for trading in an Eligible Market
but approved for listing and offered directly to the
Fund by issuer
Fund
Fund
Trustee
Fund
the Fund’s NAV.
Fund
Subject to asset allocation limits and
restrictions mentioned above relating to
From time to time during the term of this Master Prospectus, the Manager may consider investing assets
of the HGF mentioned above in foreign securities provided the relevant approvals are obtained from
BNM and the SC. At this point in time, no approval has been sought from the relevant authorities.
41
DALI
To achieve consistent capital growth over the medium to long term.
Investment strategy
The strategy will be to invest in permissible investments in accordance with applicable Syariah Principles
and regulatory policies.
Investment policy
DALI is an equity growth fund that adheres to Syariah Principles. It aims to achieve medium to long
term capital appreciation through Syariah approved investments.
The Fund aims to invest in Syariah-approved equities and fixed income instruments. The primary risks
associated with equity investments are stock market and stock specific risks while investment in fixed
income securities will introduce credit and liquidity risks. The nature of such risks is explained on page
26.
Up to 98% of the Fund will be invested in securities and other permissible investments and at least 2% in
KLSI
Asset allocation – The Investment Manager will attempt to rebalance the Fund’s asset mix by
overweighting/underweighting equities to suit the market conditions. This will ensure consistent
performance, less short-term volatility and helps minimize market risks.
Stock selection – Stocks specific risks are minimized by focusing on the stock selection process to ensure
the stocks that are selected have strong fundamentals and good potential growth over a 2-year period. In
addition, the Investment Manager will also construct a well-diversified portfolio to ensure sufficient risk
diversification.
the Fund.
42
The Fund may invest in securities traded on the KLSE and/or any other market considered as an Eligible
Market, collective investment schemes, unlisted securities, and any other investments approved by the
SC from time to time each of which has been and remains approved by a competent authority on Syariah
law (which includes but shall not be limited to, the Syariah Advisory Council of the SC and/or the
Syariah Adviser of the Fund) as permissible investments pursuant to Syariah Principles.
The Fund may invest in the following investments subject to the Guidelines, SC requirements, Syariah
Principles and in accordance with the Fund’s objective :
•
•
•
•
•
•
•
Private Debt Securities and corporate bonds traded in an Eligible Market;
•
Bankers’ acceptances and other tradeable money-market instruments in the Islamic money market;
•
companies;
•
•
•
options); and
•
43
The investment limits adopted by the Investment Manager for the Funds are as imposed under the
The value of holdings of unlisted securities that are not Must not exceed 10% of the NAV of the Fund
traded in or under the rules of an Eligible Market
The Fund’s holdings of any class of security of any Must not exceed 10% of the security issued
single issuer
The value of the holdings in the share capital of any Must not exceed 10% of the NAV of the Fund
single issuer
The value of the holdings of securities of and the Must not exceed 15% of the NAV of the Fund
The value of the holdings of securities of and the Should not exceed 20% of the NAV of the
obtained the approval of SC and notified the
Trustee
warrants and the premium of the options and
must be Syariah approved.
Fund’s NAV and must be Syariah approved.
The value of the holdings of units/shares in collective Must not exceed 10% of the NAV of the Fund
investment schemes (which invests in Syariah
counters)
Securities not listed for trading in an Eligible Market No limit but subject to restrictions mentioned
but approved for listing and offered directly to the above relating to single issuer and group of
companies
Fund by issuer
From time to time during the term of this Master Prospectus, the Manager may consider investing assets
of the DALI in foreign securities approved under the Syariah Principles provided the relevant approvals
are obtained from BNM and the SC. At this point in time, no approval has been sought from the relevant
authorities.
44
BOF
To provide investors with an opportunity to gain higher than average income over the medium to long
term by investing in a diversified portfolio consisting principally of bonds, certificates of deposit, short
term money market instruments and other permissible instruments.
Investment strategy
The strategy will be to invest in a diversified portfolio consisting principally of bonds, certificates of
deposit, short-term money market instruments and other permisible instruments.
Investment policy
The BOF aims to provide a steady stream of income via distributions to investors by investing in
approved fixed income securities.
A significant portion of the Fund is invested in fixed income securities as they have relatively less risks
as compared to equities but are expected to provide better returns than ordinary money market
placements. Fixed income securities or bonds are basically debt instruments where the borrower is a
government, institution or a corporate entity that acquires funds from lenders and will provide a certain
amount of returns in the form of interest income or discounts. These bonds are tradable in the secondary
market. Fixed income securities are exposed to market, credit, and liquidity risks, which result in the
fluctuation of the value of these bonds from time to time. The nature of such risks is explained on page
26.
Up to 98% of the Fund will be invested in fixed income securities and other permissible investments and
at least 2% in Liquid Assets. The asset allocation will be reviewed periodically depending on the
country’s economic and stock market outlook. In a rising market, the 98% limit may be breached.
However the Manager will seek to adjust this within a time frame approved by the Trustee.
RAM Quantshop MGS All Index. This is generated by an independent fund-rating company and can be
found in a fact sheet that we provide monthly to Unitholders and the public.
To mitigate potential risks, the Investment Manager will take reasonable measures. These measures
include:
• Lengthening or shortening the Fund’s average maturity or duration (within the Fund’s objective)
in anticipation of changing interest rates.
• Selecting investments that carry ratings of “BBB” (rated by Rating Agency Malaysia Berhad and
Malaysian Rating Corporation Berhad) and above and/or to invest in bank or government
guaranteed investments or investments that are secured against assets to mitigate default risks.
• Diversification of investments by holding a basket of fixed income securities to greatly reduce
the risk as compared to investing in a single asset class or a single bond.
• Channeling profits in excess of the average annual dividend into a reserve account which will be
used in times when profits are insufficient to meet distributions.
45
The Fund would generally maintain a high exposure to bonds. During adverse market, economic, and
political conditions, the principal strategy of the Investment Manager is to reduce the Fund’s bond
holdings. Where appropriate, futures will be used to adjust the portfolio’s effective exposure to bonds.
1) Interest Rate Risk / Market Risk
Prices of bonds move inversely or in the opposite direction with interest rates. When interest rates
rise, prices of bonds fall. This rise in interest rates would cause the investor to face the risk of capital
loss. But, when interest rates fall, prices of bonds would increase, therefore investors would see
capital gains.
2) Credit / Default Risk
This refers to the creditworthiness of the bond issuer and its expected ability to repay its debt. Default
happens when the issuer is not able to make timely payments of interest on the coupon payment date
or principal repayment on the maturity date. This will affect the performance of the Fund in terms of
income generated by the Fund.
3) Liquidity Risk
Liquidity is the ability to convert an investment portfolio to cash without suffering a noticeable loss
in value. The Malaysian bond market is not as liquid as the equity market and this may affect the
price of any bond.
4) Inflation / Purchasing Power Risk
Inflation can be defined as increases of the price level of goods and services and is commonly
reported using the Consumer Price Index as a measure. Inflation is one of the major risks to investors
over the long term and results in uncertainty over the future value of the investments. Inflation
reduces the purchasing power of money. In an inflationary environment, fixed rate securities are
exposed to higher inflation risks than inflation-linked securities.
46
•
Fixed income securities traded on the KLSE and/or any other market considered as an Eligible
Market;
•
•
Fixed income securities that are not traded in or under the rules of an Eligible Market including
unlisted securities that have been approved by the SC for listing and quotation on either the KLSE or
any other market considered to be an Eligible Market;
•
•
•
•
•
companies;
•
•
•
options); and
•
47
Investments in unlisted fixed income securities traded in Subject to asset allocation limits and
restrictions mentioned below relating to
or under the rules of an Eligible Market
Securities issued or guaranteed by the Malaysian No restrictions or limits
Government or Bank Negara Malaysia
The
Fund’s
holdings
of
any
debentures/instruments of any single issuer
class
of Must not exceed 20% of the security issued
The value of the holdings in debentures/instruments of Must not exceed 20% of the NAV of the
Fund. However, if the debentures/
and debentures/instruments relating to any single issuer
instruments are rated to be the best quality
and offer highest safety of timely payment
of interest and principal, by any global or
domestic rating agency, the value of the
holdings may exceed 20% but shall be
limited to 30% of the NAV of the Fund
The value of the holdings in debentures/instruments of Should not exceed 30% of the NAV of the
and debentures/instruments relating to any group of Fund except in cases where the Manager
has received approval from the SC and
companies
notified the Trustee
The value of the holdings of units/shares in collective Must not exceed 10% of the NAV of the
investment schemes (which invest in bonds and fixed Fund
income securities)
The value of the holdings in related futures contracts
The Fund’s net market exposure owing to
its futures contract positions must not
exceed the Fund’s NAV.
From time to time during the term of this Master Prospectus, the Manager may consider investing the
assets of the BOF in foreign fixed income securities provided the relevant approvals are obtained from
48
INF
To achieve medium to long term capital appreciation by seeking to match the performance of the KLCI.
Investment strategy
The strategy will be to invest up to a maximum of 99.5% of the Fund’s NAV in equities which make up
the components of the KLCI.
Investment policy
INF is an index fund. Its objective is to track the movement of the KLCI. The Fund will maintain at least
90% exposure in equities listed on the KLCI.
The Fund invests principally in equities. Futures contracts may also be used to allow the Fund to better
track the KLCI’s movements. The primary risks associated with equity and futures investments are stock
market and stock specific risks. However, due to the nature of the Fund, the holdings are well-diversified.
Therefore, the primary risk associated with the holdings of the Fund is stock market specific. The nature
of such risks is explained on page 26.
Up to 99.5% of the Fund will be invested in securities and other permissible investments and at least
0.5% in Liquid Assets. The asset allocation will be reviewed periodically depending on the country’s
economic and stock market outlook. In a rising market, the 99.5% limit may be breached. However the
Manager will seek to adjust this within a time frame approved by the Trustee.
Performance Benchmark / Underlying Index
KLCI
Due to the nature of the Fund, the Investment Manager manages the diversifiable risk of the portfolio by
holding a well-diversified portfolio. Futures contracts and other securities related to the KLCI
components may also be used to allow the portfolio to track the KLCI. However, these instruments are
not used to significantly modify the risk characteristics of the Fund relative to the benchmark index, as
doing so would be against the Fund’s investment objective of tracking the KLCI
The Fund’s principle strategy in attempting to respond to adverse market conditions, economic,
Given that the Fund aims to match the performance of the KLCI, the Investment Manager’s primary
concern is to track the benchmark index. Therefore, the Investment Manager only makes adjustments to
the Fund’s holdings when changes to index weightings occur. This means that the Investment Manager
will not significantly alter the Fund’s holdings in response to adverse market conditions, economic,
political, or any other conditions, unless these events alter the index weightings of the KLCI component
stocks. The acceptable tracking error for the fund in attempting to track the index is at 5%.
49
which they are listed on.The carrying value of the unquoted fixed income securities are carried at cost
•
Equities of the KLCI;
•
•
Other securities related to the component stocks of the KLCI provided they fulfill the liquidity
requirements;
•
options); and
•
exmptions or variations have been approved by the SC, internal policies and procedures as well as the
50
The Fund’s holdings of any class of security of any Must not exceed 10% of the security issued
single issuer in the KLCI
According to the weighting of the component
The value of the holdings of the share capital of any
stock in the KLCI*
single issuer in the KLCI
The value of the holdings of securities of and the According to the weighting of the component
securities relating to any single issuer in the KLCI
stock in the KLCI**
The value of the holdings of securities of and the According to the weighting of the component
securities relating to any group of companies
stock in the KLCI*
The value of the holdings of units/shares in collective Must not exceed 10% of the NAV of the
investment schemes
Fund
the Fund’s NAV.
Variations/Exemptions from Guidelines on Unit Trust Funds
*The Fund was granted certain variations/exemptions from Clauses 10.8.1 and 10.8.3 of the previous
Guidelines issued in 1997. However, these exemptions are no longer applicable because under Clauses
2.0(1) and 2.0(3) of Schedule C of the new Guidelines issued on 1 April 2003 and effective 1 May 2003,
the value of the Fund’s holdings of the share capital of any single issuer in the KLCI and the value of the
Fund’s holdings of securities of and the securities relating to any group of companies is permitted to
follow the weightings of the component stocks of the Index/or the representative sample used.
**Clause 2.0(2) of Schedule C of the new Guidelines (previously Clause 10.8.2 of the previous
Guidelines issued in 1997) provides that the value of the Fund's holding of the securities of, and the
securities relating to, any single issuer must not exceed 15% of the Fund's NAV.
INF was granted a variation from Clause 10.8.2 of the previous Guidelines (now Clause 2.0(2) of
Schedule C of the new Guidelines) to permit it to invest according to the weightings of the component
stocks in the KLCI. In addition, up to 5% above the weightings is permitted for investments in securities
related to the component stocks of the KLCI in order to meet liquidity requirements.
The underlying index in which the Fund intends to track or replicate and the description of the
market or sector the index represents
The Fund is designed to track the performance of the KLCI. The sectors that represent the KLCI are
Consumer Products, Industrial Products, Construction, Trading/Services, Infrastructure Project
Company, Finance, Plantations, Technology and Properties.
51
The Fund’s investment strategy whether to invest in all (full replication) or a representative sample
and how the sample is constituted
The Fund's investment strategy is to fully replicate the performance of the underlying benchmark by
investing in a well diversified portfolio of KLCI component stocks.
Circumstances that may lead to tracking error and strategies employed in minimising such error
Tracking error might occur as a result of large amounts of redemption. This will force the Investment
Manager to sell down stocks and reduce equity exposure to raise cash for the redemption. The higher
portion cash in the portfolio will make index tracking become less effective and will result in significant
disparity between the movement of the portfolio and the KLCI.
Policy on re-balancing the investment portfolio
The Investment Manager monitors the investment portfolio on a daily basis but the frequency of the
rebalancing depends on market volatility. Rebalancing is done once a week at the very least.
The weightings of the top 10 component securities as at 5 January 2004 are as follows:
No.
Counter
KLCI
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Maybank
Tenaga
Telekom
MISC
Maxis
Public Bank
Petronas Gas
Sime Darby
PLUS
BAT
9.11%
7.39%
6.94%
5.57%
4.76%
4.45%
3.83%
3.28%
3.27%
3.19%
% of holding as
against the NAV
9.24%
7.52%
7.00%
5.70%
4.83%
4.52%
3.92%
3.36%
3.31%
3.23%
The index weightings may change as and when prices fluctuate, therefore there may be periods in
between portfolio adjustments when the actual holdings may exceed the weightings in the KLCI. This is
why the table above depicts the difference.
Decision to cap the Fund at 500 million units
The Manager has decided to cap the INF at an approved fund size of 500 million units meaning that they
would not seek an increase in approved fund size beyond 500 million units and this Fund will not be
offered to new investors after 31 December 2003. The units of the Fund will only be offered to existing
regular investors who would include those who had opted for a regular investment plan through standing
instructions and autodebit arrangements.
Investors should be aware that there is no guarantee or assurance that the INF will be able
to, at any time, exactly or identically replicate the performance of the KLCI.
52
MIZAN
To achieve medium to long term growth in both capital and income by investing in permissible Syariah
investments.
Investment strategy
The strategy will be to invest up to a maximum of 60% in equities and the remainder in fixed income
securities and Liquid Assets.
Investment policy
MIZAN is an Islamic balanced fund. It aims to achieve long-term growth by investing primarily in
Syariah-approved equities and fixed income securities. The fixed income portion will provide capital
protection to the Fund while the equity portion will provide the added return in a rising market.
The Fund invests principally in Islamic equities and fixed income securities. The primary risks
26.
Up to 60% of the Fund will be invested in equities and the remainder in fixed income securities with at
least 2% in Liquid Assets. The asset allocation will be reviewed periodically depending on the country’s
economic and stock market outlook. In a rising market, this 60% limit may be breached, however, the
Manager will seek to adjust this within a time frame approved by the Trustee.
60% KLSI + 40% RAM Quantshop MGS All Index
to minimise stock specific risks. In addition, the Investment Manager invests in a portfolio of stocks to
ensure sufficient diversification.
cash and fixed income securities in unfavourable market conditions.
Manager will reduce equity exposure in favour of cash/fixed income to protect the capital of the Fund.
53
Quoted investments in Malaysia are valued at the last done market price quoted on KLSE. Quoted
stock specific risk, credit risk and liquidity risk. Please refer to page 26 for more details.
MIZAN may invest in securities traded on the KLSE, fixed-income securities traded on the KLSE or any
other market considered as an Eligible Market, collective investment schemes, unlisted securities, and
any other investments approved by the SC from time to time which have been and remain approved by a
competent authority on Syariah law (which includes but shall not be limited to the Syariah Adviosry
Council of the SC and/or the Syariah Adviser of the Fund) as permissible investments pursuant to
Syariah Principles.
Principles and in accordance with the Fund’s objective:
•
•
•
•
•
•
•
•
•
companies;
•
•
•
options); and
•
54
single issuer
single issuer
Trustee
counters)
Fund by issuer
No limit but subject to restrictions mentioned
above relating to single issuer and group of
companies
breached through the appreciation in the value of the Fund’s investments/instruments.
55
SEQUEL
To achieve maximum capital appreciation over the long term through all types of investments.
Investment strategy
The strategy of the Fund will be to invest up to a maximum of 98% in equities.
Investment policy
The SEQUEL is an equity growth fund. It aims to achieve long-term capital growth by investing
primarily in equities. The Investment Manager overweights equities when underlying conditions are
favorable, and underweights equities in favour of fixed income instruments when conditions deteriorate.
KLCI
appropriate.
The Investment Manager may also use futures to hedge against market risks when deemed appropriate.
56
stock specific risk, interest rate risk, credit risk and liquidity risk. Please refer to page 26 for more details.
•
•
•
•
•
•
•
•
•
companies;
•
•
•
options); and
•
57
any single issuer
any single issuer
Trustee
The value of the holdings in warrants and options Must not exceed 10% of the Fund’s NAV. The
Fund’s NAV.
The value of holdings of unlisted securities that Must not exceed 10% of the NAV of the Fund
are not traded in or under the rules of an Eligible
Market
Market but approved for listing and offered restrictions mentioned above relating to single
58
PCF
To maximise capital growth over the medium to long term through the stock market.
Investment strategy
The strategy will be to invest in the equity market with an emphasis on the main board stocks.
Investment policy
The PCF is an equity growth fund. It aims to achieve long-term capital growth by investing primarily in
equities. The Investment Manager overweights equities when underlying conditions are favorable, and
underweights equities in favour of fixed income instruments when conditions deteriorate.
Up to 98% of the Fund will be invested in equities and other permissible investments and at least 2% in
and stock market outlook. In a rising market, the 98% limit may be breached. However, the Manager will
KLCI
appropriate.
59
•
•
•
•
•
•
•
•
•
companies;
•
•
•
options); and
•
All investments will be subject to the Guidelines, SC requirements, the Deed, except where exemptions
or variations have been approved by the SC, internal policies and procedures as well as the Fund’s
60
single issuer
single issuer
investment schemes
Fund by issuer
Fund
Fund
Trustee
Fund
the Fund’s NAV.
Fund
From time to time during the term of this Master Prospectus, the Manager may consider to invest assets
of the PCF mentioned above in foreign securities provided the relevant approvals are obtained from
61
RBF
To grow the value of investment over the long term through a diversified portfolio with equity and fixed
income securities.
Investment strategy
The strategy will be to maintain a balanced portfolio between equities and fixed income investments in
the ratio of 60:40 where investments by the Fund in equity securities shall not exceed 60% of the NAV of
the Fund and investments in fixed income securities and liquid assets shall not be less than 40% of the
NAV of the Fund.
Investment policy
The RBF is a balanced fund. It aims to achieve long-term growth by investing primarily in equities and
fixed income securities. The fixed income portion will provide capital protection to the Fund while the
equity portion will provide the added return in a rising market.
The equity securities will not exceed 60% of the Net Asset Value of the Fund and investments in fixed
income securities and Liquid Assets shall not be less than 40% of the NAV of the Fund. At all times, at
least 2% of the NAV of the Fund must be maintained in Liquid Assets. In a rising market, the 60% limit
may be breached. However, the Manager will seek to adjust this within a time frame approved by the
Trustee.
60% KLCI + 40% RAM Quantshop MGS All Index
appropriate.
62
stock specific risk, interest rate risk, credit risk and liquidity risk. Please refer to page 26 for more details.
•
•
•
•
•
•
•
•
•
companies;
•
•
•
options); and
•
All investments will be subject to the Guidelines, SC requirements, the Deed, except where exemptions
63
single issuer
single issuer
investment schemes
Fund by issuer
Fund
Fund
Fund except in cases where the Manager
has received the approval of SC and
notified the Trustee
The investment limit refers to the price of
the warrants and the premium of the
options.
Fund
The Fund’s net market exposure owing to
its futures contract positions must not
exceed the Fund’s NAV.
Fund
64
CIF
To match as closely as possible the performance of the KLCI.
Investment strategy
The strategy will be to invest in equity securities of companies that compose the KLCI and other
instruments that are based on the value of the index. At least 90% of the Fund will be invested in equities
listed on the KLCI.
Investment policy
CIF is an index fund. Its objective is to track the movement of the KLCI. The Fund will maintain at least
90% exposure in equities listed on the KLCI.
The Fund invests principally in equities. Futures contracts may also be used to allow the Fund to better
track the KLCI’s movements. The primary risks associated with equity and futures investments are stock
market and stock specific risks. However, due to the nature of the Fund, the holdings are well-diversified.
Therefore, the primary risk associated with the holdings of the Fund is stock market specific. The nature
of such risks is explained on page 26.
Performance Benchmark / Underlying Index
KLCI
Due to the nature of the Fund, the Investment Manager manages the diversifiable risk of the portfolio by
holding a well-diversified portfolio. Futures contracts and other securities related to the KLCI
components may also be used to allow the portfolio to track the KLCI. However, these instruments are
not used to significantly modify the risk characteristics of the Fund relative to the benchmark index, as
doing so would be against the Fund’s investment objective of tracking the KLCI.
political, or any other conditions.
Given that the Fund aims to match the performance of the KLCI, the Investment Manager’s primary
concern is to track the benchmark index. Therefore, the Investment Manager only makes adjustments to
the Fund’s holdings when changes to index weightings occur. This means that the Investment Manager
will not significantly alter the Fund’s holdings in response to adverse market conditions, economic,
political, or any other conditions, unless these events alter the index weightings of the KLCI components
stocks. The acceptable tracking error for the fund in attempting to track the index is at 5%.
65
•
Equities listed on the KLCI;
•
Liquid Assets;
•
Futures contracts, for hedging purposes only (excluding futures options and eligible exchange traded
options); and
•
All investments will be subject to the Guidelines, SC Requirements and Deed, except where exemptions
The value of holding of the share capital of any
single issuer
any single issuer
stock in the KLCI*
stock in the KLCI*
Must not exceed 10% of the security issued.
Fund’s NAV.
The value of the holdings of units/shares in collectiv Must not exceed 10% of the NAV of the
investment schemes
Fund
66
Variations/Exemptions from Guidelines on Units Trust Funds
*The Fund was granted certain variations/exemptions from Clauses 10.8.1 and 10.8.3 of the previous
Guidelines issued in 1997. However, these exemptions are no longer applicable because under Clauses
2.0(1) and 2.0(3) of Schedule C of the new Guidelines issued on 1 April 2003 and effective 1 May 2003,
the value of the Fund’s holdings of the share capital of any single issuer in the KLCI and the value of the
Fund’s holdings of securities of and the securities relating to any group of companies is permitted to
follow the weightings of the component stocks of the Index/or the representative sample used.
The underlying index in which the fund intends to track or replicate and the description of the
market or sector the index represents
The Fund is designed to track the performance of the KLCI. The sectors that represent the KLCI are
Consumer Products, Industrial Products, Construction, Trading/Services, Infrastructure Project
Company, Finance, Plantations, Technology and Properties.
The Fund’s investment strategy whether to invest in all (full replication) or a representative sample
and how the sample is constituted
The Fund’s investment strategy is not to invest in all stocks that make up the KLCI. Instead, the Fund
invests in a representative sample of approximately 50 stocks.
Circumstances that may lead to tracking error and strategies employed in minimising such error
Tracking error might occur as a result of large amounts of redemption. This will force the Investment
Manager to sell down stocks and reduce equity exposure to raise cash for the redemption. The higher
portion cash in the portfolio will make index tracking become less effective and will result in significant
disparity between the movement of the portfolio and the KLCI.
Policy on re-balancing the investment portfolio
The Investment Manager monitors the investment portfolio on a daily basis but the frequency of the
rebalancing depends on market volatility. Rebalancing is done once a week at the very least.
The weightings of the top 10 component securities as at 5 January 2004 are as follows:
No.
Counter
KLCI
1.
Maybank
Tenaga
Telekom
MISC
Maxis
Public Bank
Petronas Gas
Sime Darby
PLUS
BAT
9.11%
% of holdings as
against the NAV*
9.47%
7.39%
6.94%
5.57%
4.76%
4.45%
3.83%
3.28%
3.27%
3.19%
7.65%
7.21%
5.76%
4.92%
4.63%
3.94%
NIL
3.38%
3.33%
2.
3.
4.
5.
6.
7.
8.
9.
10.
* This will have to adhere to the adjusted weightings
Investors should be aware that there is no guarantee or assurance that the CIF will be able
to, at any time, exactly or identically replicate the performance of the KLCI.
67
DALI 2
To achieve a consistent capital growth over the medium to long-term.
Investment strategy
The strategy will be to invest in permissible investments according to applicable Syariah Principles and
Investment policy
DALI 2 is a Syariah equity growth fund and a continuation of DALI. It aims to achieve medium to long
term capital appreciation through Syariah-approved investments.
The Fund aims to invest in Syariah-approved equities and fixed income instruments. The primary risks
26.
KLSI
the stocks that are selected have strong fundamental and good potential growth over a 2-year period. In
addition, the Investment Manager will also construct a well-diversified portfolio to ensure sufficient risks
diversification.
68
The Fund may invest in securities traded on the KLSE and/or any other market considered as an Eligible
Market, collective investment schemes, unlisted securities, and any other investments approved by the
SC from time to time each of which has been and remains approved by a competent authority on Syariah
law (which includes but shall not be limited to the Syariah Advisory Council of the SC and/or the Syariah
Adviser of the Fund ) as permissible investments pursuant to Syariah Principles.
•
•
•
•
•
•
•
•
•
companies;
•
•
•
options); and
•
All investments will be subject to the Guidelines, SC Requirements and Deed, except where exemptions
69
The value of holdings of unlisted securities that are not
traded in or under the rules of an Eligible Market
single issuer
single issuer
Trustee
Fund’s NAV and must be syariah approved.
counters)
Fund by issuer
companies
70
AZAM
The objective of the Fund is to seek medium to long term growth in capital by investing principally in
emerging companies with market capitalisation of up to RM750,000,000 (Ringgit Malaysia Seven
Hundred and Fifty Million) each at point of purchase and this must be in accordance with the Syariah
Principles.
Investment strategy
The investment strategy of the Fund is to seek medium to long term growth in capital mainly through
investments in equities of emerging companies in accordance with the Syariah Principles.
Investment policy
AZAM is a Syariah equity small-cap fund. It aims to invest in emerging companies listed on the KLSE
with market capitalization of less than RM750,000,000.
The Fund will invest in Syariah-approved equities and fixed income instruments. The primary risks
income securities will introduce credit and liquidity risks.
The Fund has a relatively higher stocks specific risks due to it focus on small and emerging companies
which carry high short-term price volatility. The nature of such risks is explained on page 26.
1. Up to 99.5% of the total NAV is to be invested in equities of emerging companies with a market
capitalisation of up to the RM750 million .
2. At least 0.5% of the total NAV is to be invested in Liquid Assets
3. Other investments are permissible such as collective investment schemes, futures etc.
The asset allocation will be reviewed periodically depending on the country’s economic and stock market
outlook. In a rising market, these limits may be breached. However, the Manager will seek to adjust this
within a time frame approved by the Trustee.
KL EMAS
diversification.
71
The Fund may invest in securities comprised in the KLSE and/or any other market considered as an
Eligible Market, collective investment schemes, unlisted securities, and any other investments approved
by the SC from time to time each of which has been and remains approved by a competent authority on
Syariah law (which includes but shall not be limited to the Syariah Advisory Council of the SC and/or the
•
•
•
•
•
•
•
•
•
companies;
•
•
•
options); and
•
72
The value of holdings of unlisted securities that
are not traded in or under the rules of an Eligible
Market
any single issuer
any single issuer
Trustee
collective investment schemes (which invests in
Syariah counters)
Market but approved for listing and offered
companies
73
HIKMAH
To achieve long term capital appreciation by investing principally in selected component stocks of the
KLSI.
Investment strategy
The main strategy of HIKMAH is to seek long-term growth in capital, principally through investments in
component stocks of the KLSI. These counters are all approved investments by the SC’s Syariah
Advisory Council. The Fund would primarily focus on larger capitalization stocks constituted by main
board companies which have been designated as Syariah approved securities, which make up the KLSI.
Investment policy
Hikmah is a Syariah equity growth fund. It aims to invest in the Syariah Main Board component stocks
(KLSI).
The Fund will invest in Syariah-approved equities and fixed income instruments. The primary risks
26.
Up to a maximum of 99.5% of the total NAV is to be invested in the KLSI component stocks; up to a
maximum of 10% of the total NAV in futures; and at least 0.5% of the total NAV is to be invested in
and stock market outlook.
KLSI
Asset allocation – The Investment manager will attempt to rebalance the Fund’s asset mix by
diversification.
The fund’s principle strategy in attempting to respond to adverse market conditions, economic,
74
The Fund may invest in securities comprised in the KLSI ie the KLSI component stocks, securities
related to the component stocks of the KLSI and or any other Eligible Market, collective investments
schemes (on condition they share similar objective as the Fund) and any other investments approved by
the SC from time to time each of which has been and remains approved by a competent authority on
Syariah law (which includes but shall not be limited to the Syariah Advisory Council of the SC and/or the
•
•
•
•
•
•
•
•
•
companies;
•
•
•
options); and
•
75
any single issuer
single issuer
The value of the holding of securities of and the
collective investment schemes (with similar
objectives)
Futures contracts
Must not exceed 10% of the NAV of the Fund.
Must not exceed 15% of the NAV of the Fund.
Trustee.
futures contract positions (if approved under
the Syariah) must not exceed the Fund’s NAV
76
CRS
To provide investors with long-term capital growth by investing principally in equities. The Fund also
seeks to outperform the KLCI benchmark.
Investment strategy
The majority of the Fund’s assets with a minimum of 70% will be invested in equities. Liquid Assets
may be strategically used if the Investment Manager feels that the market downside risk is high in the
short term.
Investment policy
The CRS will have a minimum equity exposure of 70% at all times. It aims to achieve long-term capital
growth by investing in equities. The Investment Manager will rebalance the portfolio and invest in
stocks which will outperform the market at different cycles of the market.
By having a higher equity exposure, the Fund is able to strongly position itself to capitalize on any
upward market movements. By being overweight in equities, any short term positive market movements
will enable the Fund to profit. However, being heavily exposed to the equities market at all times, the
fund will be more susceptible to market risks as compared to a fund that does not have such a large
equity exposure. This Fund will benefit medium to long term investors who have higher return
expectations and are able to cope with larger market fluctuations. The Fund would principally invest in
equities and to a lesser extent, in fixed income securities. The primary risk associated with equity
investments is market and stock specific risks while investment in fixed income securities would
introduce credit risk and interest rate risk. The nature of such risks is explained on page 26.
The Investment Manager will switch between sectors and stocks at different market cycles in order to
outperform the KLCI. The Fund will have higher exposure to growth stocks at the bottom of the market
cycles and increase exposure in defensive stocks at the higher end of the market cycles. The asset
allocation will be reviewed periodically depending on the country’s economic and stock market outlook.
KLCI
Stock mix – Due to the investment policy of the Fund (minimum equity exposure of 70%), diversification
is important to ensure that the Fund is able to capture the upside in a rising market and will be protected
in a declining market.
Stock selection – The CRS is a fundamentally driven fund. It invests in a diversified portfolio of value,
index, growth and defensive stocks.
Futures – The Investment Manager may use futures to hedge against market risk as and when deemed
appropriate.
Cash and Marketable Securities – The Fund may invest up to 30% in cash and marketable securities in
the event the market outlook is not favourable.
77
As this is an equity fund which has a minimum of 70 % equity exposure, the Investment Manager is
unable to take equity exposure down substantially if it feels that the market is close to its peak. Hence,
the Investment Manager will take a defensive stance and invest in stocks that have low correlation to
market movements.
Specific and peculiar risks when investing in the fund.
The Fund will be exposed to risks associated with stock market investments which include market risk
and stock specific risk. Please refer to page 26 for more details.
•
•
•
•
•
•
•
•
•
companies;
•
•
•
options); and
•
•
CRS’s objective. The minimum level of Liquid Assets may be reviewed during the term of this
Prospectus by the Investment Committee and subject to approval by Trustee. The Fund may not borrow
78
single issuer
single issuer
Trustee
Fund’s NAV.
The value of holdings of unlisted securities that are Must not exceed 10% of the NAV of the Fund
Market
Market but approved for listing and offered directly restrictions mentioned above relating to single
breached through the appreciation or depreciation of the NAV of the Fund (whether as a result of
appreciation or depreciation in the value of the investments or as a result of redemption of units or
79
EIF
To provide investors with an opportunity to gain consistent and stable income by investing in a
diversified portfolio of dividend yielding equities and fixed income securities. The Fund may also
provide moderate capital growth potential over the medium to long term period.
Investment strategy
To invest in a diversified portfolio of mainly dividend yielding equities and fixed income securities.
Investment policy
The EIF aims to provide a stable income stream in the form of distribution to investors by investing in a
diversified portfolio of high dividend yielding stocks and/ or fixed income securities.
The EIF is low risk in nature because it will invest in a diversified portfolio of above-average incomeproducing equity securities and / or fixed income securities (where volatility is low). However, in
general, risks associated with equity market investments include market risk, stock specific risk and
liquidity risk. Meanwhile, risks associated with fixed income securities include interest rate risk, market
risk, credit risk and liquidity risk. The nature of such risks is explained on page 26.
The EIF may invest up to 98% of its NAV in a diversified portfolio of high dividend yielding equities
and/or fixed income securities, leaving the remaining 2% in Liquid Assets to meet the minimum liquid
asset requirement at all times. To reflect the prevailing macro outlook and minimize market risk, the
Investment Manager will review the asset allocation of the portfolio periodically, and make switches (i.e.
underweight/overweight equities and/or fixed income securities) when necessary.
KLCI
Asset mix - The EIF may invest up to 98% of its NAV in a diversified portfolio of high dividend yielding
equities and/or fixed income securities, depending on the prevailing macro outlook. There is no internal
limit on the minimum holding of equities. However, there is no constraint as to the type of sectors the
Fund may invest in as different economic cycles may favour different sectors.
Stock selection – The EIF relies on fundamental analysis of each equity security and its potential for
success in the light of its current financial condition, its industry position, and economic & market
conditions. Factors considered include growth potential, earnings estimates and management. The
Investment Manager will invest in equity securities that have a medium-term (2 to 5 years) dividend
record or a yearly distribution policy. The Investment Manager will also actively search for under-valued
high dividend yielding equities that may also offer promising long-term (more than 5 years) capital
appreciation.
Futures - The EIF may use futures to hedge against market risk as and when deemed appropriate.
80
The EIF is defensive and low risk in nature as it is designed to cater for the needs of risk-averse investors.
This Fund will serve well in bear market conditions. However, in bull markets, the Fund will underperform the market as the Investment Manager will not compromise to take on more risk to divert into
highly volatile aggressive stocks.
The Fund will be exposed to risks associated with stock market investments which include market risk
and stock specific risk. Please refer to page 26 for more details.
accordance with the Fund’s objective:
• Securities traded on the KLSE and/or any other market considered as an Eligible Market;
• Units/shares of other collective investment schemes with similar objectives;
• Securities that are not traded in or under the rules of an Eligible Market including unlisted securities
• Warrants and options where options include futures option and exchange-traded options;
• Malaysian Government Securities, Treasury Bills, BNM Certificates/Bills, Government investments
• Other obligations issued or guaranteed by the Malaysian Government, BNM, State Governments and
• Private Debt Securities, loan stocks and corporate bonds traded in an Eligible Market;
• Bankers’ acceptances and other tradeable money-market instruments in the money market;
• Ringgit-denominated deposits placed with commercial banks, merchant banks and finance
companies;
• Negotiable Certificates of Deposits, and placements of money-at-call with discount houses;
• Securities in a foreign market approved by the SC and subject to BNM’s approval on capital flows;
• Futures contracts for hedging purposes only (excluding futures options and eligible exchange traded
options); and
• Other investments approved by the SC from time to time.
All investments will be subject to the Guidelines, SC Requirements and the Deed, internal policies and
procedures as well as the EIF’s objective. The minimum level of Liquid Assets to be maintained by the
Fund may be reviewed from time to time by the Investment Committee and subject to approval by the
Trustee. The Fund may not borrow cash or other assets (including the borrowing of securities within the
meaning of the Guidelines on Securities Borrowing and Lending) in connection with its activities and
none of the cash or investments may be lent except as otherwise provided for in the aforesaid Guidelines.
81
single issuer
any single issuer
Market
Market but approved for listing and offered directly
Trustee
Fund’s NAV.
restrictions mentioned above relating to single
breached through the appreciation or depreciation of the NAV of the Fund (whether as a result of
appreciation or depreciation in the value of the investments or as a result of redemption of units or
82
Overall Investment Strategy Adopted by SBBAM
In order to achieve each of the Fund’s objectives, the Investment Manager’s investment philosophy is
based on both a top-down and bottom-up approach. This strategy is reviewed periodically to reflect the
ever-changing political and economic environment. For instance, in a bullish market, the Investment
Manager may invest more in equities and in a bearish market, the investment in equity portfolio may be
substantially reduced to reflect market conditions.
For the equity investments, a combination of Fundamental and Technical Analysis are used to select the
right investment. Before deciding on any investment, the Investment Manager will apply a fundamental
analysis and appraise the value of investments based on the following:a) Sector Sentiment/Sector Growth
b) Price-Earning Multiples of the company/issuer
c) Quality of Earnings
d) Earnings Track Record
e) Cashflow
f) Gearing
g) Net Tangible Asset of the company/issuer
h) Quality of Management
i) Dividend Yield
j) Liquidity of shares/paid up capital of the company/issuer
Having taken the above into consideration, a technical analysis is then used to assist in the timing of
entry of the chosen investment.
For investments in fixed income securities, investment in both long-dated and short-dated securities are
permitted. The preferred duration is very much dependant on interest rates trends. In a situation where
interest rates are rising, shorter-term securities will attract greater investments whereas when interest
rates are falling, longer-term securities will be preferred. As such, interest rate trends will be monitored
very closely. Factors which will affect interest rates movements, such as economic growth, the current
account situation and monetary policy will also be monitored closely.
Having considered the above, the Investment Manager will then take into account the following points
before deciding on any fixed income investments:a) The availability and liquidity of that particular investment
b) Yield to maturity of such investment
c) Maturity spread between the different types of securities
d) The coupon rates of the securities.
83
6. PERFORMANCE OF THE FUNDS
DGF – SBB DOUBLE GROWTH FUND
(a) Average total returns of the fund
One Year (%)
30/4/2002 – 30/4/2003
-19.85
Three Years (%)
30/4/2000 – 30/4/2003
-31.9
Five Years (%)
30/4/1998 – 30/4/2003
22.58
Since Inception (%)
15/5/1991 – 30/4/2003
9.53
(b) Performance for the financial year ended 30 April
Portfolio Turnover Ratio (times)
2003
2002
2001
0.56
0.69
0.42
The PTR for the year ended 30 April 2003 was lower due to the lower trading activities in the KLSE
during the year.
There were no distributions for the last three (3) financial years.
(c) Asset allocation as at 30 April 2003
Cash & other Net Assets
12.13%
Quoted Derivative Instruments
1.90%
Quoted Equities – Local
76.32%
Unquoted Fixed Income Securities
2.91%
Quoted Equities - Foreign
6.74%
84
(d) Investment Highlights as at 30 April 2003
Financial Year
30 April 2003
Ended
Top
Five
(5) Malayan Banking Bhd –
Investments
Shares
30 April 2002
Tenaga Nasional Bhd –
Shares
PLUS Expressways Bhd
– Shares
Malayan Banking Bhd –
Shares
Berjaya Sports Toto Bhd
– Shares
– Shares
Commerce AssetHolding Bhd – Shares
Commerce AssetHolding Bhd – Shares
Shares
Magnum Corporation
Bhd - Shares
Top
Three
(3) United Food Holdings
Foreign Investment Ltd
Huan Hsin Holdings Ltd
China Petroleum &
Chemical Corporation
30 April 2001
Shares
Putrajaya Holdings Sdn
Bhd - Unquoted Bonds
Telekom Malaysia Bhd
– Shares
KFC Holdings (M) Bhd
– Shares
Malayan Banking Bhd
– Shares
People’s Food Holdings
Ltd
China Petroleum &
Chemical Corporation
Taiwan Semiconductor
Manufacturing Ltd
Taiwan Semiconductor
Manufacturing Ltd
China Unicom Ltd
Past performance of the Fund is not an indication of future performance
85
ECO – SBB EMERGING COMPANIES GROWTH FUND
One Year (%)
30/6/2002 – 30/6/2003
-5.45
Three Years (%)
30/6/2000 – 30/6/2003
-18.83
Five Years (%)
30/6/1998 – 30/6/2003
78.81
Since Inception (%)
10/5/1994 – 30/6/2003
27.72
(b) Performance for the financial year ended 30 June
2003
2002
2001
0.23
0.81
0.27
The PTR for the year ended 30 June 2003 was lower due to lower trading activities of the Fund.
(c) Asset allocation as at 30 June 2003
Cash & Other Assets
Quoted Equities - Foreign
13.19%
69.89%
4.72%
Quoted Derivatives Instruments
10.62%
1.58%
(d) Investment Highlights as at 30 June 2003
Financial Year
Ended
Top
Five
Investments
30 June 2003
(5) Public Bank Bhd –
Shares
Malaysian Plantations
Bhd – Shares
Magnum 4D Bhd –
Shares
Aegis One Bhd –
Unquoted Bonds
Gamuda Bhd – Shares
Top
Three
(3) Huan Hsin Holdings
Foreign Investment Ltd
Giordano International
Ltd
GMM Grammy PCL
30 June 2002
Leisure Management
Bhd – Shares
Alliance Bank Malaysia
Berhad – Unquoted
Bonds
Public Finance Bhd –
Shares
Celcom (Malaysia) Bhd
– Unquoted Bonds
30 June 2001
Celcom (Malaysia) Bhd
- Unquoted Bonds
Malaysian Pacific
Industries Bhd – Shares
IOI Properties Bhd –
Shares
Hong Leong Bank Bhd –
Shares
Giordano International
Ltd
Shangri-La Asia Ltd
86
SF – SBB SAVINGS FUND
One Year (%)
31/8/2002 – 31/8/2003
8.02
Three Years (%)
31/8/2000 – 31/8/2003
15.32
Five Years (%)
31/8/1998 – 31/8/2003
127.97
Since Inception (%)
10/8/1995 – 30/8/2003
74.31
(b) Performance for the financial year ended 31 August
Distribution for the year:
Dividend income
Interest income
Realised gains (less losses) on sale of investment
Accretion of discount, net of amortisation of
premium
Distribution equalisation
Previous year’s realised income
Less:Expenses
Tax
Net distribution
2003
2002
2001
RM’000
RM’000
RM’000
-
-
-
-
-
-
-
-
-
-
3,441
5,931
39,756
235
4,249
(5,235)
(807)
47,570
Gross Distribution per unit (sen)
10.00
-
-
Net distribution per unit (sen)
9.83
-
-
1.06
0.56
Forms of distribution
Cash/Reinvestment
0.92
The PTR for the year ended 31 August 2003 was lower due to lower trading activities of the Fund.
(c) Asset allocation as at 31 August 2003
Cash & Other Assets
5.43%
51.30%
Unquoted Fixed Income
Securities
87
43.27%
(d) Investment Highlights as at 31 August 2003
Financial Year
31 August 2003
Ended
Top
Five
(5) Special Port Vehicle
Investments
Bhd – Unquoted Bonds
Sistem-Lingkaran
Lebuhraya Kajang Sdn
Malayan Banking Bhd
Ambang Sentosa Sdn
ABS Real Estate
Berhad – Unquoted
Bonds
31 August 2002
31 August 2001
Celcom Malaysia Bhd –
Unquoted Bonds
Projek Lebuhraya UtaraSelatan Berhad –
Unquoted Bonds
Lekir Bulk Terminal
Sdn Bhd – Unquoted
Bonds
Shares
Puncak Niaga Sdn Bhd –
Unquoted Bonds
Syarikat Air Johor Sdn
Bhd – Shares
Teknologi Tenaga Perlis
Consortium Sdn Bhd –
Unquoted Bonds
Shares
Alliance Bank – Shares
Malaysia Bhd –
Unquoted Bonds
88
HGF – SBB HIGH GROWTH FUND
One Year (%)
31/10/2002 –
31/10/2003
20.68
Three Years (%)
31/10/2000 –
31/10/2003
18.38
Five Years (%)
31/10/1998 –
31/10/2003
95.23
Since Inception (%)
28/9/1995 – 31/10/2003
43.56
(b) Performance for the financial year ended 31 October
2003
2002
2001
0.62
0.78
0.50
The PTR for the year ended 31 October 2003 was lower due to lower trading activities of the Fund.
(c) Asset allocation as at 31 October 2003
Cash & Other Assets
Quoted Equities
1.78%
85.10%
12.10%
1.02%
(d) Investment Highlights as at 31 October 2003
Financial Year
31 October 2003
31 October 2002
Ended
Top
Five
(5)
Malayan Banking Bhd Malayan Banking Bhd –
Investments
Shares
– Shares
Special Port Vehicle Tenaga Nasional Bhd –
Shares
Bhd – Unlisted Bonds
Tenaga Nasional Bhd – Berjaya Sports Toto Bhd
– Shares
Shares
Public Bank Bhd – PLUS Expressways Bhd
– Shares
Shares
PLUS
Expressways Telekom Malaysia
Berhad - Shares
Bhd – Shares
31 October 2001
Shares
– Shares
Projek Lebuhraya UtaraSelatan Berhad –
Unquoted Bonds
– Shares
Shares
89
DALI – SBB DANA AL-IHSAN
One Year (%)
31/5/2002 – 31/5/2003
-2.50
Three Years (%)
31/5/2000 – 31/5/2003
-18.74
Five Years (%)
31/5/1998 – 31/5/2003
67.40
Since Inception (%)
7/5/1998 – 31/5/2003
67.40
(N/A - not applicable)
(b) Performance for the financial year ended 31 May
2003
2002
2001
0.66
0.89
0.30
The PTR for the year ended 31 May 2003 was lower due to lower trading activities of the Fund.
(c) Asset allocation as at 31 May 2003
Cash & Other Assets
Quoted Equities
9.72%
57.83%
32.19%
0.26%
(d) Investment Highlights as at 31 May 2003
Financial Year
31 May 2003
Ended
Top
Five
(5) Sistem-Lingkaran
Investments
*PLUS Expressways
Bhd – Shares
– Shares
Shares
Projek Lebuhraya
Utara-Selatan Berhad –
Unquoted Bonds
31 May 2002
31 May 2001
– Shares
Unquoted Bonds
Shares
SAJ Holdings Sdn Bhd –
Unquoted Bonds
Unquoted Bonds
Puncak Niaga Holdings
– Shares
Shares
Unquoted Bonds
Malakoff Bhd - Shares
* According to the List of Securities Approved by the Syariah Advisory Council of the Securities
Commission, PLUS Expressways Berhad is non-approved security since 25 October 2002. The Fund is
permitted to hold on to this security if the market price of the said security is below the original
investment cost, however the Fund will have to dispose this holding when the total amount of dividend
received and the market value of this security held equals the original investment cost. However , it has
since been approved by the Syariah Advisory Council on 31 October 2003.
90
BOF – SBB BOND FUND FUND
One Year (%)
31/7/2002 – 31/7/2003
18.07
Three Years (%)
31/7/2000 – 31/7/2003
43.49
Five Years (%)
31/7/1998 – 31/7/2003
N/A
Since Inception (%)
28/7/1999 – 31/7/2003
52.81
(b) Performance for the financial year ended 31 July
2003
2002
2001
RM’000
RM’000
RM’000
6,223
2,132
1,028
683
289
160
389
-
-
9,858
45
(1,394)
17,253
404
(343)
(3)
1,769
77
(115)
(1)
410
Gross Distribution per unit (sen)
7.000
6.000
4.500
Net distribution per unit (sen)
7.000
5.991
4.488
Cash/Reinvestment
Cash/Reinvestment
Cash/Reinvestment
1.64
3.18
1.24
Distribution for the year:
Dividend income
Interest income
Realised gains (less losses) on sale of
investment
Accretion of discount, net of
amortisation of premium
Previous year’s realised income
Less:Expenses
Tax
Net distribution
Forms of distribution
The PTR for the year ended 31 July 2003 was lower due to the lower trading activities in the Fund given
the less active bond market in general.
(c) Asset allocation as at 31 July 2003
Cash & Other Assets
1.49%
91
98.51%
(d) Investment Highlights as at 31 July 2003
Financial Year
31 July 2003
Ended
Top
Five
Investments
Projek Lebuhraya
Utara-Selatan Bhd –
Unquoted Bonds
Ambang Sentosa Sdn
SAJ Holdings Sdn Bhd
– Unquoted Bonds
CBO One Bhd –
Unquoted Bonds
31 July 2002
Celcom Malaysia Bhd
– Unquoted Bonds
31 July 2001
Tenaga Nasional Bhd
– Bonds
SAJ Holdings Sdn Bhd – Malaysian Government
Securities (MGS)
Unquoted Bonds
Maxisegar Sdn Bhd
– Unquoted Bonds
Sistem-Lingkaran
Prai Power Sdn Bhd –
Unquoted Bonds
Measat Broadcast
Network Services Sdn
Unquoted Bonds
Projek Lebuhraya UtaraSelatan Bhd – Unquoted
Bonds
92
INF – SBB INDEX-LINKED FUND
One Year (%)
30/9/2002 – 30/9/2003
15.75
Three Years (%)
30/9/2000 – 30/9/2003
8.02
Five Years (%)
30/9/1998 – 30/9/2003
N/A
Since Inception (%)
8/6/2000 – 30/9/2003
-7.15
(b) Performance for the financial year ended 30 September
2003
2002
2001
0.16
0.02
1.13
The PTR for the year ended 30 September 2003 was higher due to higher trading activities in the Fund.
(c) Asset allocation as at 30 September 2003
Cash & other assets
Quoted Equities
2.85%
96.99%
Futures Contracts
0.16%
(d) Investment Highlights as at 30 September 2003
Financial Year
30 September 2003
Ended
Top
Five
(5) Malayan Banking Bhd
– Shares
Investments
Tenaga Nasional
Berhad – Shares
– Shares
Malaysia International
Shipping Corporation
Bhd – Shares
Maxis Communication
Bhd – Shares
30 September 2002
30 September 2001
Shares
Tenaga Nasional Berhad
– Shares
– Shares
Bhd – Shares
– Shares
– Shares
Shares
Petronas Gas Berhad Shares
Petronas Gas Berhad –
Shares
Bhd – Shares
93
MIZAN – SBB DANA AL-MIZAN
One Year (%)
30/9/2002 – 30/9/2003
15.15
Three Years (%)
30/9/2000 – 30/9/2003
N/A
Five Years (%)
30/9/1998 – 30/9/2003
N/A
Since Inception (%)
8/3/2001 – 30/9/2003
26.75
2003
2002
2001
1.10
0.92
0.73
The PTR for the year ended 30 September 2003 was higher due to higher trading activities to increase the
equity weighting of the Fund.
Cash & Other Assets
Quoted Equities
7.56%
52.98%
Unquoted Fixed income Securities
39.46%
Financial
30 September 2003
Year/Period Ended
Top
Five
Investments
Projek Lebuhraya
Utara-Selatan Berhad –
Unquoted Bonds
Encorp Systembilt Sdn
– Shares
Shares
30 September 2002
30 September 2001
Unquoted Bonds
Unquoted Bonds
Unquoted Bonds
– Shares
Shares
Puncak Niaga Sdn Bhd –
Unquoted Bonds
Unquoted Bonds
Teknologi Tenaga
Consortium – Unquoted
Bonds
Unquoted Bonds
94
SEQUEL – SBB HGF SEQUEL FUND
One Year (%)
30/9/2002 – 30/9/2003
14.38
Three Years (%)
30/9/2000 – 30/9/2003
N/A
Five Years (%)
30/9/1998 – 30/9/2003
N/A
Since Inception (%)
8/3/2001 – 30/9/2003
27.27
2003
2002
2001
0.83
0.85
0.72
The PTR for the year ended 30 September 2003 was consistent for the period ended 30 September 2003.
Cash & other assets
Quoted Equities
10.53%
73.10%
Unquoted Fixed income Securities
16.37%
Financial
30 September 2003
Year/Period Ended
Top
Five
(5) Malayan Banking Bhd Shares
Investments
Special Port Vehicle
Tenaga Nasional
Berhad – Shares
Expressway Lingkaran
Tengah Sdn Bhd –
Unquoted Bonds
Aegis One Bhd –
Unquoted Bonds
30 September 2002
30 September 2001
Shares
Celcom Malaysia Bhd _
Unquoted Bonds
– Shares
– Shares
Commerce AssetHolding Bhd - Shares
– Shares
Arab Malaysian Finance
Bhd - Shares
– Shares
Shares
- Shares
95
PCF – SBB PREMIUM CAPITAL FUND
One Year (%)
30/6/2002 – 30/6/2003
-3.99
Three Years (%)
30/6/2000 – 30/6/2003
-5.27
Five Years (%)
30/6/1998 – 30/6/2003
84.84
Since Inception (%)
1/8/1995 – 30/6/2003
8.33
(b) Performance for the financial year ended 30 June
2003
2002
2001
0.21
0.57
0.56
The PTR for the year ended 30 June 2003 was lower due to lower trading activities in the Fund.
(c) Asset allocation as at 30 June 2003
Cash & Other Assets
15.96%
Quoted Equities
84.00%
Quoted Fixed income
Securities
0.04%
(d) Investment Highlights as at 30 June 2003
Financial Year
30 June 2003
Ended
Top
Five
(5) Malaysian Pacific
Investments
British American
Tobacco (M) Bhd
– Shares
Resorts World Bhd
– Shares
O.Y.L. Industries Bhd
– Shares
30 June 2002
Malaysia Pacific
30 June 2001
Genting Bhd – Shares
Commerce Asset
Holdings Bhd – Shares
– Shares
Malayan Banking Bhd
– Shares
Resorts World Bhd
– Shares
Resorts World Bhd
– Shares
Commerce Asset
SP Setia Bhd – Shares
96
RBF – SBB RETIREMENT BALANCED FUND
One Year (%)
31/3/2002 – 31/3/2003
-9.55
Three Years (%)
31/3/2000 – 31/3/2003
-16.34
Five Years (%)
31/3/1998 – 31/3/2003
47.65
Since Inception (%)
12/3/1997 – 31/3/2003
13.69
(b) Performance for the financial year ended 31 March
2003
2002
2001
0.20
0.89
0.73
The PTR for the year ended 31 March 2003 was lower due to lower trading activities in the Fund.
(c) Asset allocation as at 31 March 2003
Cash & Other Assets
36.33%
Quoted Equities
48.63%
Quoted Derivative
Instruments
0.04%
Quoted Fixed income
Securities
Unquoted Fixed income
Securities
2.69%
12.31%
(d) Investment Highlights as at 31 March 2003
Financial Year
31 March 2003
Ended
Top
Five
(5) O.Y.L. Industries Bhd
Investments
– Shares
Hong Leong Credit
British American
Tobacco (M) Bhd
Shares
–
Jaya Jusco Stores Bhd
– Shares
Malaysian Pacific
Industries Bhd
Shares
–
31 March 2002
31 March 2001
Malaysia Pacific
Industries Bhd
–
Shares
Commerce Asset
Commerce
Asset
– Shares
Resorts World Bhd
– Shares
Resorts World Bhd
– Shares
Malayan Banking Bhd
– Shares
Genting Bhd – Shares
Unquoted Bonds
O.Y.L. Industries Bhd
– Shares
97
CIF – SBB COMPOSITE INDEX FUND
One Year (%)
30/9/2002 – 30/9/2003
14.82
Three Years (%)
30/9/2000 – 30/9/2003
4.14
Five Years (%)
30/9/1998 – 30/9/2003
N/A
Since Inception (%)
23/8/1999 – 30/9/2003
-2.65
2003
2002
2001
0.31
0.06
0.16
The PTR for the year ended 30 September 2003 was higher due to higher trading activities in the Fund.
Cash & Other Assets
1.76%
Quoted Equities
98.24%
Financial Year
30 September 2003
Ended
Top
Five
(5) Malayan Banking Bhd
– Shares
Investments
Tenaga Nasional
Berhad – Shares
– Shares
Bhd – Shares
Maxis Communication
Bhd – Shares
30 September 2002
30 September 2001
Shares
– Shares
– Shares
Bhd – Shares
– Shares
– Shares
Shares
Bhd – Shares
98
DALI 2 – SBB DANA AL-IHSAN 2
AZAM – SBB DANA AL-AZAM
HIKMAH – SBB DANA AL-HIKMAH
CRS – SBB CRYSTAL EQUITY FUND
EIF – SBB EQUITY INCOME FUND
No information is available as the above funds are in their first financial period.
(b) Performance of the Fund
(c) Asset allocation of the Fund
(d) Investment Highlights of the Fund
99
7. CHARGES, FEES & EXPENSES
Charges
Please refer to page 15 for further details. For illustrations on how the sales charge and the redemption
charge are calculated, please refer to page 102 and 103).
Fees and Expenses
Annual Management Fee
The Annual Management Fee is paid out of each Fund and is calculated daily based on the Net Asset
Value of the Fund for each day. (Please refer to page 16 for further details)
Fees Payable to Trustee
Please refer to page 16 for further details.
Illustration for Management Fee and Trustee Fee accrued daily on the basis of a management fee
of 1.85% p.a. and a trustee fee of 0.06% p.a.:
Assets
RM120 million
Liabilities
(RM20 million)
Net Asset Value
RM100 million
Management Fee
RM5,068.49 (100 million x 1.85%/365)
Trustee Fee
RM164.38 (100 million x 0.06%/365)
Transfer Fee
You are entitled to transfer (either fully or partially) the units registered in your name to another person
by completing a transfer form that may be obtained from the Manager.
However, you are required to maintain a minimum of 100 units (for DGF), 500 units (for ECO, SF, HGF
& DALI), 1,000 units (for INF, SEQUEL, PCF, RBF, CIF, DALI 2 & EIF) and 2,000 units (for BOF,
MIZAN, AZAM, HIKMAH & CRS) in order to maintain an account with the Manager.
For each transfer, a fee of RM3.00 is charged by the Manager. However, this has been waived for the
Funds.
Switching Fee
An investor is entitled to two free switches out of any Fund in every calendar year. The Manager will
charge RM100 for each subsequent switch.
Expenses
Only the expenses that are directly related and necessary to the business of a Fund are payable or
reimbursable out of the assets of that Fund. This would include all expenses allowed under the Deed for
the Fund and would amongst others cover audit fees and tax agent’s fees for the audit of accounts and
preparation of tax returns and other administration expenses.
Sales Commission Payable to Agents
Commission paid to all distribution channels is an expense borne by the Manager out of the Sales
Charge. Total commission of up to a maximum of 4.2% of the Selling Price per unit is paid to the tied
agents. For IUTAs, the sales commission and the trailer commission do not exceed the Sales Charge and
50% of the Annual Management Fee respectively.
100
7. CHARGES, FEES & EXPENSES
Autodebit/Standing Instruction
Autodebit and other Standing Instruction facilities are available at selected banks and handling charges
will be borne by the investors. For more details, please contact our Customer Service, the details of
which are set out on page 110
Total Annual Expenses incurred by the Funds for the year 2003
Fund Name
Management
Fee
RM’000 %*
Trustee Fee
RM’000
Other Expenses
%* RM’000
%*
Total Annual
Expenses
RM’000
Management
Expense Ratio
%*
%
DGF
4,373
1.58
283 0.10
158
0.06
4,814
1.74
1.65
ECO
6,318
1.49
250 0.06
155
0.04
6,723
1.59
1.60
SF
5,423
1.31
86 0.02
97
0.02
5,606
1.36
1.55
HGF
9,409
1.44
113 0.02
96
0.01
9,618
1.47
1.53
DALI
10,822
1.39
577 0.07
104
0.01
11,503
1.47
1.59
BOF
1,258
0.41
106 0.03
28
0.01
1,392
0.45
1.05
860
0.93
69 0.07
37
0.04
966
1.04
1.19
MIZAN
3,897
1.35
260 0.09
59
0.02
4,216
1.46
1.62
SEQUEL
2,799
1.15
187 0.08
53
0.02
3,039
1.25
1.63
PCF
4,601
1.44
86 0.03
32
0.01
4,719
1.48
1.55
RBF
2,083
1.54
131 0.10
27
0.02
2,241
1.66
1.61
457
0.83
38 0.07
22
0.04
517
0.94
1.07
INF
CIF
* Reflected as a percentage of the NAV
Soft Commissions
Dealings on investments of the Funds through brokers or dealers will be on terms which are best
available for the Funds. Any rebates from brokers or dealers will be directed to the account of the
relevant Fund. The Investment Manager generally does not receive any soft commission. However, the
Investment Manager may from time to time receive and retain soft commission in the form of free data
and quotation services or computer software from a broker or dealer to whom dealings for the Funds are
directed provided such dealings are on best execution basis and the goods and services received as soft
commission are of demonstrable benefit to the unit holders of the Fund.
There are fees and charges involved and investors are advised to consider the fees and charges
before investing in the Fund
101
8. TRANSACTION INFORMATION
NET ASSET VALUE
What is the Net Asset Value of a Fund?
It is determined by deducting the value of a Fund’s liabilities from the value of that Fund’s assets at the
valuation point.
How is the Net Asset Value calculated?
The calculation of the NAV* is illustrated below:
RM million
Quoted Investments
80
Fixed Income Securities
32
Liquid Asset
5
Other Assets
3
120
Less : Liabilities
(20)
Net Asset Value
100
* The values used are for illustration purposes only
SALE & REDEMPTION OF UNITS
What is the Selling Price per Unit?
The Selling Price of each Unit shall be the Net Asset Value per unit of each Fund as at the next valuation
point after the Manager received (or is taken to have received) the application for units plus a sales
charge of 6.5% of the NAV per unit for all Funds (with the exception of 6% for CIF and 2% for BOF).
As the basis of calculation is forward pricing, the Selling Price on any Business Day will be the
published Selling Price on the following day.
Assuming that the NAV of the Fund at the end of the Business Day on 15 October 2003 for HGF was
RM 649,794,772, units in issue on 15 October 2003 was 746,929,000 units and the Sales Charge is 6.5%
of the NAV per Unit, the Selling Price per Unit published on 16 October 2003 is as illustrated below:
NAV per Unit
=
=
NAV
Units in issue
649,794,772
746,929,000
RM0.8700
=
=
=
=
(NAV per Unit + Sales Charge*)
0.8700 + (0.065 x 0.8700)
0.8700+ 0.0566
RM0.9266
=
Selling Price per Unit
*Sales Charge = 6.50% x NAV per Unit
102
What about the Redemption Price per Unit?
The Redemption Price per unit of a Fund is the NAV per Unit of the Fund and there is no redemption
charge.
As the basis of calculation is forward pricing, the Redemption Price per unit on any Business Day on
which the request to redeem is received by the Manager will be the published Redemption Price on the
following day.
As illustrated below:
Assuming that the Redemption Price per unit for HGF published on 16 October was RM0.8700 and the
request to redeem received by the Manager was in respect of 1,000 units. The Redemption Price per unit
for the Fund is the NAV per Unit of the Fund. There will be no redemption charge imposed on any
request to redeem the units.
NAV per Unit
=
RM0.8700
Redemption Charge
=
RM0.00
Redemption Price per Unit
=
NAV per Unit
=
RM0.8700
103
TRANSACTION DETAILS
What is the Cooling-off Period?
Subject to the exclusions below, Unitholders have the right to exercise a withdrawal of their investment
in a Fund within six (6) Business Days commencing from the date the application form is received by the
Manager in order to obtain a refund of their investment in the fund.
As a matter of policy, any complete or full redemption exercised by a first time investor to any of the
Funds within six (6) business days from receipt of the application form by the Manager operates as an
exercise of the cooling off right. "First time investor" means an investor who is investing with the
Manager for the first time and if the investor is an existing Unitholder in any of the Funds, he will not be
entitled to the cooling off right. Investors applying for Units in any of the Funds as jointholders will not
be entitled to any cooling off rights if either jointholder is an existing Unitholder (whether under an
individual or jointholding account) with the Manager.
The refund for every unit held by the investor pursuant to the exercise of the cooling off right shall be the
sum of the NAV per Unit on the day the units were first purchased and the sales charge per unit
originally imposed on the day the units were purchased. The money must be refunded to the investor
within 10 days of receipt of the notice of cooling off by the Manager.
The cooling off right is only accorded to a first time investor (as described above) other than those listed
below:
• A corporation or institution;
• A staff of the Manager; and
• Persons registered to deal in unit trusts of the Manager.
Although the cooling-off right is applicable to all investors (except those mentioned above), investors
who invest via the KWSP Members’ Investment Scheme would, however, be subject to KWSP’s terms
and conditions.
Where units can be purchased or redeemed
Units can be bought and sold on any business day at any of the Manager’s offices, SBB branches or from
any IUTA. You are required to complete and return the relevant forms available at any of the Manager’s
offices, SBB branches or from any IUTAs listed on page 205.
Is there a minimum initial investment?
Yes, the minimum initial investment is RM1,000 (Ringgit Malaysia One Thousand) only for all Funds
except DGF, DALI and BOF in which the minimum initial investments are RM100 (Ringgit Malaysia
One Hundred), RM500 (Ringgit Malaysia Five Hundred) and RM2,000 (Ringgit Malaysia Two
Thousand) respectively.
Illustration:
Assuming you make an application to invest RM1,000 and the Selling Price per unit quoted on
the following day after your application is received by the Manager is RM0.5753
Therefore, the units credited to your account is:
Amount Invested
=
RM1,000
=
RM0.5753
104
1,738 units
What about subsequent investments?
If you are an existing Unitholder of any of the following Funds, you can make additional investments at
any one time with the minimum amount as mentioned below or you can opt to participate in the Regular
Investment Plan (RIP).
(Subject to the approved size of the Funds, there is no maximum limit to the number of units or
amount you can invest)
Funds
Subsequent Investments (RM)
DGF, SF*, PCF, RBF & CIF
100
ECO, HGF & BOF
500
DALI
50
INF, MIZAN, SEQUEL, DALI 2, AZAM, HIKMAH,
CRS & EIF
200
RIP is a facility offered by the Manager to all unitholders of all Funds. For your convenience, you can
invest regularly using the Autodebit or Standing Instruction arrangements we have made for you with
selected banks throughout Malaysia.
*The SF is tailored for you to participate in the RIP by investing a fixed monthly amount of at least
RM100 for a period of five (5) years. For the first five (5) years after your initial investment, the Manager
shall not be bound to comply with your request to repurchase part of your units if the effect thereof would
result in you holding less than your initial investment. Please note that this is only applicable to SF with
RIP. For more details, please refer to the product brochures available.
Term of the Funds
The duration of the Funds is indefinite. However, the Deed provides for a number of circumstances under
which the Trustee may terminate the Funds. Section 110 of the SCA also provides the circumstances and
conditions under which the Funds may be wound up.
Recognition as Unitholder
You will be recognised as a Unitholder upon being registered and registration will take effect only after
acceptance of the application form and monies by the Manager.
Can I use my KWSP funds to invest with SBB Mutual?
Yes. (Such investment is referred to below as “KWSP investment”.)
105
How can I purchase the Funds? (This would apply to all categories including KWSP investment)
You may purchase units at any time by simply completing the application form enclosed with this Master
Prospectus and returning it to any of the Manager’s offices or SBB’s branches or any IUTA on any
business day. You are also required to attach a copy of your Identity Card or Passport (for NonMalaysian) to your application form.
On receiving your request, the Manager will purchase the units at the Selling Price which is quoted in the
major daily newspapers on the following day.
Illustration:
Assuming that you have requested the Manager to invest RM1,000. The Selling Price
per Unit quoted on the following business day upon receipt of your request was
RM0.90.
Unit Invested
= Investment Amount
= RM1,000
RM0.90
= 1,111.11 units
How can I redeem my investment? (This would apply to all categories including KWSP
investment)
You may redeem your units at any time by simply completing the redemption form and returning it to
any of the Manager’s offices, SBB’s branches or any IUTA on any business day. You are also required to
attach a copy of your Identity Card or Passport (for Non-Malaysian) to your redemption form. On
receiving your request, the Manager will redeem the units at the Redemption Price which is quoted in the
major daily newspapers on the following day.
Illustration:
Assuming that you have requested the Manager to redeem One Thousand Units (1,000)
of your investment. The Redemption Price per Unit quoted on the following day upon
receipt of your request was RM0.90.
Redemption Proceeds = Number of Units Redeemed x Redemption Price per Unit
= 1,000 units x RM0.90
= RM900
The Manager shall remit the redemption proceeds to you or to KWSP (for KWSP investment) within ten
(10) days from the date the redemption request is received by the Manager.
106
Suspension of Sale and/or Redemption
The Trustee has the right to suspend the redemption of units by the Manager in a situation where it
considers it not in the interests of Unitholders for investments of the Fund to be sold or where
investments cannot be liquidated at an appropriate price or terms. In such situations, the Trustee should
suspend the sale and/or redemption of units and call for a Unitholders’ meeting to decide on the next
course of action.
The suspension of the sale and/or redemption of units in the Fund should only be carried out where the
interests of the Unitholders or the potential investors would be materially affected if the sale and/or
redemption of units were not suspended. Other than the situation described above, the Trustee may
suspend the sale and/or redemption of units in the Fund in exceptional circumstances, where there is
good and sufficient reason to do so having regard to the interests of the Unitholders or potential investors.
In such case, the period of the suspension must not exceed 21 days unless the consent of the Unitholders
is obtained.
How much can I redeem and is there a minimum holding requirement?
You may redeem any amount of units. However, the Manager shall not be bound to comply with any
request to partially redeem units if the effect thereof would be that you hold less than the minimum
holding requirement applicable for the relevant fund. (Please refer to page 18 for the details on a
minimum holding requirements)
Is there a restriction on the frequency for redemption?
No.
107
What is Fund Switching?
Switching is a facility offered by the Manager to Unitholders. This facility enables you to convert units of
one unit trust fund to units of another unit trust fund managed by the Manager.
Every Unitholder is entitled to two (2) free switches out of a Fund in a calendar year, and subsequent
switches will incur a charge of RM100 for every switch.
The Manager allows switching from Syariah-based Funds into conventional Funds, however, Muslim
Unitholders are discouraged to switch from Syariah-based funds to conventional funds.
Switching Between Equity Funds
If you switch from a fund (the “existing fund”) to another fund (the “intended fund”), units will be
redeemed at the NAV per Unit of the existing fund and the proceeds will be used to acquire units of the
intended fund at the NAV per Unit of the intended fund. Any sales charge of the intended fund would be
waived.
Types of Funds
Existing Fund
All Funds
Intended Fund
All Funds
Pricing
Units redeemed Units acquired
at
at
NAV per Unit
NAV per Unit
Switching Fee
RM100, except for
the first two
switches in a
calendar year
Note: The general position above does not apply to switching from the BOF, which is subject to the
special rules below.
Switching from BOF
As the BOF had a no load policy (ie. no sales charge) before 24 April 2003, there are 2 scenarios
governing switching from BOF depending on whether the unitholder who wishes to switch out of the
units in BOF invested in the BOF units when BOF had a no load policy (before 24 April 2003) or when
BOF had imposed a sales charge (on or after 24 April 2003). Further, unitholders who invested in BOF
when there was a no load policy will be subject to different rules on switching out of BOF depending on
whether the investment in BOF was a switch from another fund.
Types of Funds
Existing Fund
Intended Fund
(BOF)a
ALL
(BOF)b
(BOF)c
ALL
ALL
Pricing
Units redeemed
Units acquired
at
at
Selling Price per
NAV per Unit
Unit
NAV per Unit
NAV per Unit
NAV per Unit
NAV per Unit +
(Sales Charge –
2%)
108
Switching Fee
RM100, except for
the first two
switches in a
calendar year
1st Scenario
(a) A switch from BOF (bought without the sales charge, before 24 April 2003) into another fund will
mean that the BOF units will be redeemed at the NAV per Unit of BOF and the proceeds will be used
to acquire units of the intended fund at the Selling Price per Unit of the intended fund (i.e. inclusive
of applicable sales charge of the intended fund)
BOF
intended fund
(Selling Price)
(b) If the BOF holding is a result of a switch from other SBB Mutual’s funds, a switch from BOF into
another fund will mean that the BOF units will be redeemed at the NAV per Unit of BOF and the
proceeds will be used to acquire units of the intended fund at the NAV per Unit of the intended fund.
Equity fund
BOF
(NAV)
intended fund
(NAV)
2nd Scenario
This would apply to unitholders who invested in BOF during the imposition of a sales charge (also
referred to as ‘load policy’) (on or after 24 April 2003).
(c) A switch from BOF (bought with the sales charge) into another fund will mean that the BOF units
will be redeemed at the NAV per Unit of BOF. The proceeds will be used to acquire units of the
intended fund at the NAV per Unit of the intended fund plus the net Sales Charge (after deduction of
2% from the Sales Charge of the intended fund).
BOF
intended fund
(Sales Charge – 2%)
What is a transfer?
A transfer is a facility whereby you are entitled to convey or transmit (either fully or partially) the units
registered in your name to another person by completing a transfer form which may be obtained from the
Manager. For each transfer, a fee of RM3.00 is chargeable by the Manager. However, this has been
waived for the Funds.
For any partial transfer out of the Funds, you are also required to maintain the relevant minimum holding
requirement in respect of the relevant Fund in order to maintain your account with the Manager.
Does the Manager allow Regular Withdrawals?
Yes.
109
COMMUNICATION WITH INVESTORS
Confirmation Advice Slip
Each time you purchase units or conduct any other transactions for any of the Funds, a Confirmation
Advice Slip is sent out to you by ordinary post.
Statements of Account
A statement summarising all transactions effected by you within each calendar year ending 31 December
will be generated and sent to you.
Fact Sheet
The Manager issues a monthly fact sheet to Unitholders detailing each Funds’ investment objective and
strategy, investor profile, investment portfolio, performance data and portfolio analysis.
Financial Reports
You will be informed of the performance of the Fund you have invested in through an audited annual
report for the financial year-end of the Fund and an unaudited interim report. The reports will be sent to
you within two (2) months of the end of the two stated periods.
Newspaper
The Manager publishes each Fund’s selling price, redemption price, NAV per unit, management fees,
sales charge and redemption charge (if any) daily in at least one national Bahasa Melayu and one national
English newspaper.
Customer Service:
You can seek assistance on any issue relating to the Funds, every working day from 9.00 a.m. to 5.30
p.m., by contacting SBB Mutual at:
•
Our Customer Care Hotline at 03-7718 3000; or
•
Our regional offices and branches (listed on page 205);
You may also:
•
E-mail SBB Mutual via [email protected]; or
•
Visit SBB Mutual’s homepage at http:// www.sbbmutual2u.com.
110
9. UNITHOLDERS’ RIGHTS AND LIABILITIES
When you invest in a Fund, you have certain rights, which amongst others, include the rights to the
benefits from owning the units and the right to attend and vote at Unitholders’ meetings. Each unit held
in a Fund confers an equal undivided beneficial interest in the assets of the Fund. However, the unit does
not give you an interest in any particular part of the Fund or right to be involved in the management or
operation of the Fund (other than through Unitholders’ meetings).
A Unitholder may not:
• interfere with any rights or powers of the Manager or Trustee under the Deed;
• exercise a right in respect of an asset or lodge a caveat or other notice affecting an asset or otherwise
claim any interests in an asset; or
• require an asset to be transferred to the Unitholder.
What are my Rights as a Unitholder?
You are entitled to:
• receive distributions of income as and when payable;
•
receive interim and annual reports;
•
summon Unitholders' meetings in accordance with the Deed and the Guidelines.
•
vote for the removal of the Manager or the Trustee through a special resolution;
•
if you are a qualifying investor, exercise your cooling-off right for all your investments.*
*The KWSP terms and conditions will apply for those investors exercising the cooling off right under the
KWSP Members Investment Scheme. Please refer to page 104 for more details.
What are my Liabilities as a Unitholder?
Except to the extent as provided in the Deed in respect of fees, charges and expenses out of the amount
invested in the Fund, after full payment of the Selling Price of the units held by him/her:
• no Unitholder shall incur or assume any liability or be required to make any payment to the Trustee
or Manager in respect of his units; and
• no further liability can be imposed on any Unitholder in respect of such units.
Your liability will be limited to your investments in the Fund.
111
10. THE MANAGEMENT AND ADMINISTRATION OF THE FUNDS
THE MANAGER
Who is SBB Mutual Berhad?
SBB Mutual was incorporated on 17 December 1990 under the Companies Act, 1965. As at 5 January
2004, it had an authorised capital of RM25,000,000 divided into 25,000,000 ordinary shares of RM1.00
each of which 10,000,000 ordinary shares are issued and fully paid-up. The shareholding interests in SBB
Mutual are as follows:
Shareholders and Percentage of Equity
Shareholders
%
BHL Venture Berhad
100%
Summary of Audited Profit/Loss Account and Shareholders’ Funds
Unaudited Year Ended Year Ended Year Ended
31 Oct 2003 31 Dec 2002 31 Dec 2001 31 Dec 2000
RM
RM
RM
RM
Paid up capital (RM’000)
10,000
10,000
10,000
2,000
Retained Earnings (RM’000)
44,824
36,998
34,224
50,146
Shareholders’ Funds (RM’000)
54,824
46,998
44,224
52,146
1,720,400
842,492
663,992
1,138,726
Pretax profit (RM’000)
16,895
12,612
5,349
17,547
Profit after tax (RM’000)
11,826
9,254
2,878
11,980
Turnover (RM’000)
Since its inception, SBB Mutual has steadily expanded and as at 5 January 2004 employs over 201 staff
(comprising 110 executives and 91 non-executives) with 5 regional offices, 8 branches and 18 sales
offices spread throughout the country. Currently, SBB Mutual manages 13 equity funds, 3 balanced
funds and 1 fixed income fund with a total approved fund size of 11.05 billion units.
112
As Manager, what are SBB Mutual’s main functions?
The Manager is responsible for the day to day management of the Funds in accordance with the
provisions of the Deed and for the development and implementation of appropriate investment strategies.
The main tasks include:
• managing funds received from the investors to be eventually invested by the Investment Manager;
• valuation and pricing of units;
• arranging the sale and redemption of units;
• keeping proper records of the Funds; and
• maintaining the Register of Unitholders.
What are the manager’s powers in relation to removal or replacement of trustees?
Section 108 of the SCA allows the Manager to remove or replace the trustees after becoming aware that:
• the trustee has ceased to exist;
• the trustee has not been validly appointed;
• the trustee is not eligible to be appointed or to act as trustee under Section 99 of the SCA;
• the trustee has failed or refused to act as trustee in accordance with the provisions or covenants of the
deed or the provisions of the SCA;
• 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 that appointment, or a petition is presented for the winding up
of the existing Trustee (other than for the purpose of and followed by a reconstruction, unless during
or following such reconstruction the existing Trustee becomes or is declared to be insolvent); or
• the trustee is under investigation for conduct that contravenes the Trust Companies Act 1949, the
Trustee Act 1949, the Companies Act 1965 or any securities law.
Who are the people behind the Manager?
THE BOARD OF DIRECTORS
The Directors, who meet at least once every two (2) months, are mainly responsible for the overall
management of SBB Mutual. In exercising their powers, the Directors will act honestly, with diligence
and with reasonable skill. Each Director owes a fiduciary duty to SBB Mutual not to allow his/her
personal interests to conflict with that duty. The Directors are guided by the Company Director’s Code of
Ethics.
BOARD OF DIRECTORS
Dato' Seri Goh Eng Toon, has been in banking since the fifties. In 1973, he joined Ban Hin Lee Bank
Berhad (“BHL Bank”) and initiated its corporate restructuring exercise. Since then, he has been
principally involved in the management of BHL Bank. Dato' Seri Goh also serves on the board of several
charitable trusts. Besides being on the board of many public service and social organisations, he also sits
on the board of several companies having business activities in finance, insurance, medical care, leasing,
investments, property development, warehousing, asset management and trusteeship. He has been the
Chief Executive of BHL Bank since 1973 and has assumed the additional role of Chairman in 1990. He
has been a Director and Chairman of SBB Mutual since 17 December 1990. Pursuant to the merger of
BHL Bank and Southern Bank Berhad, he was appointed a Director of the enlarged bank, SBB on 18
October 2000. He is Chairman of Southern Finance since 28 September 2001 and also Chairman of
Aviva Insurance Bhd since 8 May 2000.
Dato' Yeap Leong Huat is a Director of BHL Bank which has since merged with Southern Bank Berhad.
He was appointed as Director of Southern Bank Berhad on 18 October 2000. He is also a Director of
several private limited companies having business activities in education, property development and
investments. His other directorships include Island & Peninsular Berhad, a public listed company. He has
been a Director of BHL Bank since September 1980 and a Director of SBB Mutual since 3 June 1992.
113
Dato’ Dr Yahya Bin Ismail, was appointed as a non-independent non-executive director of SBB on 1
October 1983. He was in the Public Service from 1959 to 1978. He retired as Director-General of the
National Livestock Authority and served on the Totalisator Board Malaysia from 1982 to 1990 and as
Chairman from 1986. Dato Dr Yahya Bin Ismail currently sits on the board of a number of public listed
companies which include Killinghall (Malaysia) Berhad since 1978, Shell Refining Company (FOM)
since 1978, YTL Corporation Bhd since 1984, YTL Power International Bhd since 1996 and Metroplex
Berhad since 1993. He is also the Executive Chairman of Komputer Sistem (M) Sdn Bhd since 1979.
Dato’ Dr Yahya Bin Ismail was appointed as Director of SBB Mutual on 1 April 2003.
Tan Sri Dato’ (Dr) R.V. Navaratnam, is currently the Corporate Adviser of the Sunway Group, the
Executive Director of Sunway College and Director of the Asian Strategy and Leadership Institute
(ASLI). Tan Sri was educated at Victoria Institution, Kuala Lumpur and the University of Malaya in
Singapore where he obtained a Bachelor of Arts (Honours) in Economics. Tan Sri joined the Malaysian
Civil Service in 1959 and held several posts in his career of 27 years in the Treasury. He obtained his
Diploma in Public Administration from the Royal Institute of Public Administration in London in 1961
and the M.P.A (Economics) from Harvard University, United States in 1969. He was appointed Alternate
Executive Director of the World Bank in Washington between 1970 and 1972. After this appointment, he
rejoined the Treasury where he served as Deputy Secretary General. Tan Sri was promoted as SecretaryGeneral of the Ministry of Transport in 1986. On his retirement from the Government service, he became
Chief Executive Officer of Bank Buruh (now BSN Bank) between July 1989 to July 1994. Tan Sri was
Vice Chairman of the Malaysian Business Council, was a member of the Malaysian External Trade
Development Corporation (MATRADE) and was a Director of the Malaysian Industry-Government
Group for High Technology (MIGHT). He was appointed Director of SBB Unit Trust Management
Berhad in April 1995. In August 1999, he was appointed member of the National Economic Consultative
Council (MAPEN II). Tan Sri is presently a member of the Court and Council of the Malaysian Institute
of Management and the Deputy President of the Institute of Management Consultants. He obtained an
Honorary Doctorate from Oxford Brookes University (UK) and has written 6 books on the Malaysian
economy. Tan Sri Dato’ (Dr) R.V. Navaratnam was appointed as an independent Director of SBB Mutual
on 1 April 2003.
Mr Wong Joon Hian, is the Managing Director of Advance Synergy Capital Berhad. He is a member of
the Malaysian Institute of Certified Public Accountants, the Malaysian Institute of Accountants and a
fellow member of the Institute of Chartered Accountants in England and Wales. He commenced his
career when he joined Price Waterhouse & Co in England after qualifying as a Chartered Accountant in
1973 and has since accumulated over 30 years of working experience in the areas of audit, accountancy,
financial services and corporate management. He sits on the Board of Southern Investment Bank Berhad
as a non-executive director and is an independent non-executive director of Southern Finance Berhad. He
is also a director in several other private limited companies. He is also currently serving the Malaysian
Institute of Accountants as a member of the Accounting and Auditing Committee. Mr Wong was
appointed as an independent Director of SBB Mutual on 1 April 2003.
YM Raja Puan Sri Dato’ Noora Ashikin Bte Raja Abdullah, graduated with a Bachelor of Economics
and Administration (Hons) from the University of Malaya in 1972 and holds a certificate from the
Institute of Bankers. Upon her graduation, she joined Bank Bumiputra Malaysia Berhad as a subaccountant. In 1974 she joined Chartered Merchant Bankers Berhad as an Investment Officer and was
duly promoted to Assistant Investment Manager in 1978. Subsequently in 1980, she became a remisier
with Yew Securities Sdn Bhd before founding RNA Securities Sdn Bhd in 1983. In 1991, RNA
Securities entered into a joint venture with Southern Bank Berhad. Since then, she sits on the board of
SBB Securities Sdn Bhd. She also holds a Dealer’s Representative licence and is a member of the KLSE.
She is also a trustee of the Women’s Institute of Management since 1994 and holds several positions in
various social, charity and sports organisations and is also a Paul Harris Fellow. YM Raja Puan Sri Dato’
Noora Ashikin Bte Raja Abdullah was appointed as Director of SBB Mutual on 1 April 2003.
114
THE MANAGEMENT TEAM
Mr Paul Low Hong Ceong is the Chief Executive Officer. He is responsible for the company's
performance and leads the company in the formulation of its business strategies and future plans. He was
previously the General Manager of SBB Mutual and has been with SBB Mutual since July 1998. He
holds an MBA degree from McNeese State University, Louisiana, USA. He has been in the financial
service circuit since 1986, which includes international experiences in the USA. Before his return to
Malaysia in 1993, he was with Northwestern Mutual and Metlife in the USA. He was also the Founder
and President of Malaysian-California Chamber of Commerce 1992/1993 and President of St. Louis
Chinese Junior Chamber of Commerce USA in 1987/1988. He is currently a Council Member of the
FMUTM, chairing the Marketing and Distribution Committee and is also a board member and Vice
President of the Financial Planning Association of Malaysia.
Mr Chan Kok Hin is the Chief Marketing Officer. He is responsible for the overall marketing and
business development strategies of SBB Mutual, including distribution channels development, product
development, training and communications. He joined SBB Mutual on 1 February 2000 as Vice
President, Head of Marketing and Business Development Division and was subsequently promoted to his
present position. He has over 14 years of marketing and business development experiences in the
insurance industry, which includes international experiences in the ASEAN countries. He holds a Degree
in Bachelor of Social Science (Hons) majoring in Economics, is a Certified Financial Planner (CFP) and
an Associate of Life Office Management – US and a Fellow of Life Underwriter Training Council – US.
Mr David Wee Kim Peng is the Chief Operating Officer. He is responsible for the overall areas of
finance, operations, customer service and information technology of SBB Mutual. He has 20 years
experience in banking, insurance and management consulting. He gained most of his working experience
in Maybank, Perwira Affin Bank (now Affin Bank), Price Waterhouse Consulting (now IBM Consulting)
and AIA. He holds a Degree in Bachelor of Arts (Hons) from the University of Malaya. He joined SBB
Mutual on 8th January 2003.
Ms Jessica Loh Swee Wei is the Customer Support Director. She holds a Bachelor of Arts Degree
(Hons) majoring in Economics from the University of Malaya and is a Certified Financial Planner (CFP).
In her present appointment, she is responsible for the day to day unit trust operations, customer servicing
and quality system functions within the company. This function involves the responsibility to ensure that
all channels of service delivery to the customers are meeting or exceeding standards and expectations.
She has over 10 years of experience in the financial services industry and areas covered ranges from
operations and customer servicing to quality improvement. She joined SBB Mutual in 1996.
Mr Joseph Tan Gee Hon is the Info-Ledge Director. He holds a Bachelor of Science Degree in
Computer Science from the University of South Western Louisiana, USA. He has more than 16 years of
IT working experience both locally and abroad.
Besides having extensive experience in project
development, application tools, database and hardware, Joseph also has considerable exposure in the
vendor and end user environment. He is in charge of the Application Development & Support
Department, Systems Support & Administration Department, Management Information Department,
System & Methods Department and E-Commerce Department. He is also responsible for the consulting,
administration, planning and design, support and co-ordination of all applications, database, network,
data warehousing, and strategic planning for SBB Mutual. He joined SBB Mutual in September 2000.
Mr Kim Thean Soo is the Finance Director. He is an Associate Member of the Association of Chartered
Certified Accountants since 1996. He is responsible for the accounting and financial management of the
company. He has more than 13 years experience in the fields of audit, group accounts and compliance.
Prior to joining the company, he was attached with another unit trust management company for four
years. He joined SBB Mutual in May 2001.
115
Mr Jeffrey Koit Kong Seng is the Human Resource Director. He holds a Bachelor of Divinity degree
from Trinity Theological College, Singapore. He has clocked-in a total of 11 years of HR experience – 3
years as Human Resource Executive in Singapore and 7 years as Human Resource Manager in KL, prior
to joining SBB Mutual in May 2002. In his present appointment, he is responsible for the entire human
resource and administration functions of the company.
Ms Jalaja B Balakrishna is the Head of Division – Legal and Compliance and the designated person for
Compliance. She holds a Bachelor of Economics Degree (Hons) from the University of Malaya and
qualified as a legal practitioner from the Legal Practitioners Admission Board (formerly known as the
Barristers and Solicitors Admission Board) of Sydney, Australia. She is also an Associate Member of the
Law Society of NSW, Australia. She heads a team which is responsible for providing a structured and
integrated approach towards building a compliance culture within SBB Mutual and undertakes some
legal work for the company. Prior to this, she worked in the area of compliance at the former Insurance
and Superannuation Commission of Australia in Sydney. She joined SBB Mutual in August 1997.
116
THE INVESTMENT MANAGER
What are the Investment Manager’s main functions?
The Investment Manager is responsible to manage, realise, invest, reinvest or howsoever deal in
accordance with the investment objectives of each of the Funds. The Investment Manager shall have
discretionary authority over the investments of each Fund subject to the Guidelines, the SCA and the
internal policies and procedures. The Investment Manager reports to the Investment Committee of the
Funds on a regular basis on the status of the portfolio, proposed investment strategy and other matters
relating to the portfolio of the Funds.
Who is the Investment Manager?
SBB Mutual has appointed SBB Asset Management Sdn Bhd as the Investment Manager for the Funds
with the approval of the Trustee.
BACKGROUND OF SBB ASSET MANAGEMENT SDN BHD (SBBAM)
SBB Asset Management Sdn Bhd (SBBAM) began operations in January 1992, and is a member of
Southern Bank Berhad Group. On 1 July 2003, SBBAM merged with BAM and SBBAM is the
Investment Manager for all Funds managed and administered by SBB Mutual. As at 5 January 2004, the
staff strength stood at 40 with 33 executives and 7 non-executive staff.
Who are the people behind SBBAM?
BOARD OF DIRECTORS OF SBBAM
Dato' Yeap Leong Huat is a Director of BHL Bank which has since merged with Southern Bank Berhad.
He was appointed as Director of Southern Bank Berhad on 18 October 2000. He is also a Director of
several private limited companies having business activities in education, property development and
investments. His other directorships include Island & Peninsular Berhad, a public listed company. He has
been a Director of BHL Bank since September 1980, Director of SBB Mutual since 3 June 1992 and was
appointed as Director of SBBAM with effect from 17 November 2003.
Dato’ Michael Yeoh is the Chief Executive Officer and Director of Asian Strategy and Leadership
Institute (ASLI), a non-profit Research Institute focused on developing international relations, strategic
thinking, leadership and knowledge management. He has been actively involved in research,
consultation and advisory work for various organisations for the past 20 years. He is currently the VicePresident of Institute of Management Consultants and member of Malaysian-Australia Business Council,
National Economic Consultative Council, International Affairs Committee of Malaysian International
Chamber of Commerce & Industry, National Economic Action Council’s Working Group on
Globalization and Ministry of International Trade and Industry’s Expert Group on WTO issues.
Encik Nordin Yahaya, is the General Manager of Corporate Services and Information, SBB. He also
heads the Southern Bank Islamic Banking Section. Prior to joining Southern Bank in 1991, he served in
the Malaysian Administrative and Diplomatic Service for sixteen years. He served as Assistant Secretary
in the Foreign Investment Committee (FIC) Secretariat, Senior Assistant Director in the Prime Minister’s
Department, Senior Assistant Secretary in the Capital Issues Committee (CIC) Secretariat and Special
Assistant to the Finance Minister, a post he held until he left public service in 1991.
117
KEY MANAGEMENT STAFF OF SBBAM
Ms Pearl Wong, is the Chief Executive Officer and founder of SBBAM. She has more than 25 years of
experience in fund management and is the principal officer responsible for setting up and the daily
running of SBBAM. Pearl started her career as an auditor with Kassim Chan. In 1977, she joined
Bumiputra Merchant Bankers as a fund manager and Rashid Hussain Asset Management as the General
Manager of Investment in 1989. In 1990, she joined the Southern Bank Group to set up SBBAM.
Throughout her career as a fund manager, Pearl has handled institutional money consisting of pension
funds, unit trust funds, charitable foundations and statutory funds. Pearl is a graduate in Economics from
the University of Nottingham, England.
Ms Ng Geok Ching (Angie), is the Vice President, Investment. She assists Pearl in fund management and
client enquiries. Prior to joining SBBAM, she was an Assistant Manager with the Investment Department
of Aseambankers Malaysia Berhad for three and a half years. She is a graduate in Actuarial Science from
the London School of Economics. She is the designated fund manager for SBB Premium Capital Fund
and SBB Retirement Balanced Fund and has been a licensed fund manager since 1996.
Encik Azlan Hussin is the Vice President, Investment. Prior to joining SBBAM, he was attached to Ernst
& Young Auditing firm as a Senior Auditor for one and a half years. His work function involved
planning audit program, consulting with clients on improvement of accounting system and monitoring
subordinate staff. He joined SBBAM in June 1997. An accountant by training, he is well versed in
financial and accounting analysis, therefore he has naturally resumed responsibilities of fundamental
investment research and fund management for SBBAM. He is a graduate from Southbank University of
London with honours degree in Accounting and Finance, and also a graduate of Association of Chartered
and Certified Accountants (ACCA) from Emile Woolf College, London. He is the designated fund
manager for SBB Composite Index Fund, SBB Dana Al-Ihsan 2, SBB Dana Al-Hikmah and SBB Dana
Al-Azam. He has been a licensed fund manager since 1998
Mr Philip Wong is the Vice President, Investment. He started his career as a research analyst in
Bumiputra Merchant Bankers Berhad in 1995 before moving to Amanah SSCM Asset Management
Berhad and Pacific Mutual Fund Berhad. He joined SBBAM in April 2000. He is a graduate in Master of
Science in Investment Analysis from University of Stirling, Scotland and Bachelor of Accountancy from
University of Huddersfield, England. He is the designated fund manager for SBB Equity Income Fund
and SBB Crystal Equity Fund. He has been a licensed fund manager since 2000.
Mr Low Kwong Choong is the Vice President, Investment. He has more than 20 years of professional
experience in audit, stockbroking and investment research. He has prior exposure with both local and
foreign stock brokerages. Before joining BAM, he was an executive director in a local futures brokerage
for two years. He is a Chartered Financial Analyst (CFA) and a chartered accountant/certified public
accountant by qualification. He is the designated fund manager for SBB Double Growth Fund and SBB
Emerging Companies Growth Fund. He has been a licensed fund manager since 2000.
Ms Wu Yah Ning is the Vice President, Investment. She has been with BAM since 1997 and continued
her service with SBBAM after the merger. Prior to joining BAM, she was an International Project
Finance Executive in an international investment bank. Her first degree was from the London School of
Economics and she has a Masters in Investment Management (with distinction) from the City University
Business School in London. She is also a Chartered Financial Analyst (CFA). She is the designated fund
manager for SBB Savings Fund, SBB High Growth Fund, SBB Index-Linked Fund and SBB HGF
SEQUEL Fund. She has been a licensed fund manager since 1997.
118
Encik Suhaimi bin Abdullah is the Vice President, Investment. He started his career as a trainee
executive in an investment organization, before joining a local financial institution as a credit analyst
evaluating credit proposals for corporate clients. Prior to joining BAM, he worked for over five (5) years
with a large local fund management organization where he was responsible for investment research and
portfolio management for one of their newer funds. He holds a bachelor’s degree in management from
the Universiti Teknologi Malaysia and an MBA in Financial Studies from the University of Nottingham.
He is also a Chartered Financial Analyst (CFA). He is the designated fund manager for SBB Dana AlIhsan and SBB Dana Al- Mizan. He has been a licensed fund manager since 2001.
Mr Dennis Lee is the Vice President, Investment. Prior joining the fund management industry, he was
with an international insurance firm performing actuarial tasks. He subsequently moved on to be an
Investment Analyst in a local securities firm. He graduated with a Masters degree in Business
Administration (Finance) from the University of Leicester, UK and a Bachelor’s degree in Economics
from Macquarie University, Australia. He is also a Chartered Financial Analyst (CFA) charterholder. He
has been a licensed fund manager since 2003.
Encik Laif Ahmad Fisal is Assistant Vice President, Investment. Prior to joining SBBAM, he was an
analyst with the Malaysian Derivatives Clearing House and a Company Dealer in a stockbroking firm.
He graduated with a Masters degree in Finance from Strathclyde University, Scotland, a Masters degree
in Financial Engineering & Quantitative Analysis from Reading University, England and a Bachelor’s
degree in Actuarial Science from City University, England. He is also a Chartered Financial Analyst
(CFA) charterholder. He is the designated fund manager for SBB Bond Fund and has been a licensed
fund manager since 2003.
Mr Hiew Wee Leong is Assistant Vice President, Investment. Prior to joining BAM, he was attached to a
local securities firm as an Investment Analyst. He graduated from Monash University, Australia, with a
Bachelor’s degree in accounting. He has been a licensed fund manager since 2000.
Ms Tan Choh Bee is Vice President, Compliance. She has been with SBBAM for 12 years and currently
heads the Compliance Department. Prior to joining SBBAM, she was with PFA Corporate Services as a
Company Secretary. She is an associate member of the Institute of Chartered Secretaries and
Administrators (ICSA) of England.
Mr Lau Yew Sun is the Vice President, Finance & Administration. Prior to joining the company, he was
a Supervisory Audit Senior with KPMG Peat Marwick. He joined BAM in February 1995, and currently
heads the Finance and Administration Department. He is a graduate in Accounting from the Universiti
Utara Malaysia. He is also a registered Public Accountant with the Malaysian Institute of Accountants
(MIA).
119
Investment Management Agreement
The Agreement sets out the terms and conditions upon which SBBAM is appointed and agrees to act as
the investment manager for the Manager, SBB Mutual in respect of the Funds. SBBAM may, at its
complete discretion manage, realise, invest, reinvest or deal with each part of the portfolio subject to the
investment powers and restriction set out in the Prospectus, supplements and other documents in relation
to the Funds. The remuneration is either on a flat fee basis or sliding scale based on the net asset value of
each Fund and varies depending on the type of Fund.
SBBAM will at all times act with bona fides and in the best interests and for the benefit of the portfolio
and all investment transactions effected pursuant to or in connection with this Agreement will be effected
in accordance with the objectives of the relevant Fund, the provisions of the Deed, relevant Prospectuses
and will be subject to the rules and customs of the exchange, market and/or any clearing house through
which the transactions are executed or settled and to all applicable law so that:
•
•
•
If there is any conflict between the provisions of this Agreement and any such rules, or applicable
law, the latter will prevail subject to prior notification thereof to the Manager;
SBBAM may take or omit to take any action they consider fit in order to ensure compliance with any
such rules, and applicable law; and
such rules, and applicable law and all such actions so taken and such omissions will be binding on
the Manager.
The Manager shall advise SBBAM in writing of any investment restrictions, changes or modifications as
imposed by the SC or any other authority from time to time which shall affect the investments of the
portfolio and if the Manager deems any investments made for the portfolio to be in violation of such
restrictions, changes or modifications, the Manager shall inform SBBAM in writing and SBBAM shall
take the necessary action to be in compliance within a reasonable time.
SBBAM will comply with all specific procedures and implement such controls within a reasonable time
frame as may be requested by the Manager on condition that these requirements are statutorily imposed
or required by the regulators and/or the Trustee as the minimum internal controls for the industry.
Either the Manager or the Investment Manager shall be entitled to terminate this Agreement by serving a
notice in writing of at least three (3) months or such shorter period as may be agreed to between the
parties and this shall commence upon actual receipt of the written notice. The Agreement shall terminate
upon the occurrence of any of the following events:
• SBB Mutual ceases to be approved by SC as a management company;
• SBBAM ceases to be approved/licensed by SC as an investment manager;
• either party ceases to carry on business;
• SBB Mutual or SBBAM is declared insolvent or consents to the appointment of a trustee, custodian
or intervener or receiver for it or for a substantial part of its property or any such trustee, custodian,
intervener or receiver is appointed, or bankruptcy, dissolution, reorganisation, intervention,
arrangement or liquidation proceedings (or proceedings similar in purpose or effect) are instituted by
or against SBB Mutual or SBBAM provided that the winding-up, liquidation or cessation of business
of SBB Mutual under any circumstances whatsoever shall not terminate this Agreement until actual
notice of such winding-up, liquidation or cessation of business has been received by SBBAM; and
• at any time any act, condition, thing, approvals, licences or consents required to be done, performed ,
fulfilled or obtained in order to enable either party hereto lawfully to enter into, exercise its rights
under and perform the obligations expressed to be assumed by it under this Agreement is not done,
renewed, obtained or granted.
120
THE INVESTMENT COMMITTEE
What are the Investment Committee’s role and main functions?
The role of the Investment Committee is to ensure that the investment management of the Funds is
consistent with the objectives set out for the Funds, the Deed, the Guidelines, the SCA and other relevant
securities laws, any internal investment restrictions and policies, and acceptable and efficacious
investment management policies within the unit trust industry. The Investment Committee will oversee
and draw up broad policies for fund management activities for the Funds. The Investment Committee
meets regularly at least once a month to review the performance of the portfolio of the Funds and
oversees the Investment Manager in ensuring that they comply with the investment guidelines of the
Funds under management. The performance of the Funds will also be reviewed against the appropriate
adopted benchmarks.
Who are the members of the Investment Committee?
Professor Dr Sieh Lee Mei Ling, Ph.D., M.A (Sheffield), B.Sc. (Econs Hons) (Singapore) is the Chair
Professor of Business Administration, University of Malaya. She has extensive research experience and
has numerous publications. She has been a consultant to government and inter-government agencies,
professional bodies, industries, multinational and Malaysian corporations. Her advisory and honorary
positions include those with the Palm Oil Research Institute of Malaysia, the Master Builders
Association of Malaysia, the Board of Employees Provident Fund and the National Accreditation Board.
She was appointed as an independent member of the Investment Committee for DGF, ECO, SF, DALI,
BOF, INF, MIZAN and SEQUEL on 1 April 2003, PCF, RBF, CIF, DALI 2, AZAM, HIKMAH on 14
October 2003, and CRS and EIF on 20 November 2003.
Professor Dr Mahani Zainal Abidin, Ph.D (independent member) is a Professor in the Department of
Applied Economics, Faculty of Economics & Administration, University of Malaya. She holds a PhD in
Development Economics from the University of London, England. She has served as a lecturer in the
University of Malaya since 1979 and has extensive knowledge in the areas of industrial development and
policy, international trade and regional groupings and economic structural transformation. She has
published her work and has conducted research work for international agencies such as the Asian
Development Bank, UNCTAD and the Economic Commission for Latin America and the Caribbean.
Professor Dr. Mahani is a member of the Working Committee of the National Economic Action Council,
Associate Research Fellow of the Malaysian Institute of Economic Research (MIER) and Program
Associate of the American Committee on Asian Economic Studies. She was a Board Member of the EPF
from 1998 – 2001. In April 2001, Professor Dr Mahani was appointed as Head, Special Consultancy
Team on Globalisation at the NEAC. She was appointed as an independent member of the Investment
Committee for DGF, ECO, SF, HGF and DALI on 2 April 1999, BOF on 16 July 1999, INF on 25 May
2000, MIZAN on 12 February 2001, SEQUEL on 15 February 2001, DALI 2, AZAM and HIKMAH on
28 April 2003, and CRS and EIF on 23 September 2003.
Tan Sri Dato’ (Dr) R.V. Navaratnam, as aforementioned on page 114.
Tan Sri Dato’ (Dr) R.V. Navaratnam was appointed as an independent member of the Investment
Committee for PCF on 15 June 1995, RBF on 22 February 1997, CIF on 13 September 1999, DALI 2,
AZAM and HIKMAH on 28 April 2003, DGF, ECO, SF, DALI, BOF, INF, MIZAN and SEQUEL on
14 October 2003, and CRS and EIF on 23 September 2003.
121
Tan Sri Osman S. Cassim, was appointed Chairman of SBB in October 1990. He has extensive
experience in the public sector having served as a member of the Malaysian Administrative and
Diplomatic Service for 30 years. Among the posts he held during this tenure were Secretary-General in
the Ministry of Labour, the Ministry of Information and Ministry of Home Affairs. Tan Sri Osman was
also Director-General of the Public Services Department Malaysia from 1980 up to his retirement in
1985. In 1985, he was appointed National Executive for Malaysia and Brunei of the General Electric
Technical Services Co Inc. (USA) and subsequently as National Advisor to the General Electric
International (USA) in 1988 until 1993. In 1987, he was appointed as a Member of the Advisory Panel
established under Section 31A (2) of the Central Bank Malaysia Ordinance 1985. He is a member of the
Court of Fellows of the Malaysian Institute of Management and is currently its Vice-President. Tan Sri
Osman was educated at Anderson School, Ipoh and later graduated with a Bachelor of Arts (Honours)
from University of Malaya in Singapore. In 1970 and 1984, he attended the Advanced Management
Programmes conducted respectively by the New Zealand Administrative Staff College, Wellington and
the Harvard Business School in Boston. Tan Sri Osman was appointed as a member of the Investment
Committee for PCF on 15 June 1995, RBF on 22 February 1997, CIF on 13 September 1999, DALI 2,
AZAM and HIKMAH on 28 April 2003, DGF, ECO, SF, DALI, BOF, INF, MIZAN and SEQUEL on
14 October 2003, and CRS and EIF on 23 September 2003.
YM Raja Puan Sri Dato’ Noora Ashikin Bte Raja Abdullah, as aforementioned on page 114.
YM Raja Puan Sri Dato’ Noora Ashikin Bte Raja Abdullah was appointed as a member of the
Investment Committee for DGF, ECO, SF, HGF, DALI, BOF, INF, MIZAN and SEQUEL on 8 April
2003 and PCF, RBF, CIF, DALI 2, AZAM and HIKMAH on 14 October 2003, and CRS and EIF on 20
November 2003.
Dato’ Dr Yahya Bin Ismail, as aforementioned on page 114.
Dato’ Dr Yahya was appointed as a member of the Investment Committee for DALI 2, AZAM and
HIKMAH on 28 April 2003, PCF, RBF and CIF on 24 July 2003, DGF, ECO, SF, HGF, DALI, BOF,
INF, MIZAN and SEQUEL on 14 October 2003, and CRS and EIF on 23 September 2003.
Managing Conflicts of Interest
To the best knowledge of the Manager, transactions undertaken by or on behalf of the Fund are done in
the interests of the Unitholders.
The Manager, the Investment Manager, their employees, directors or affiliates and members of the
Investment Committee (“the Relevant Persons”) will not deal with the Fund as beneficial owner on the
sale or purchase of investments to or from the Fund. Where a conflict of interest arises due to the
Relevant Persons holding substantial shareholdings or directorships of public listed companies, and any
of the Fund invests in shares or stocks belonging to that public listed company, the said Relevant Persons
shall abstain from any decision making relating to that particular share or stock. The Manager also has its
own internal policies and procedures to address this kind of conflict of interest with respect to its officers
and this would also cover the fund managers. Substantial shareholding according to Section 69D subsection (1) to (3) of the Companies Act, 1965 means an interest of not less than 5 percent in the voting
shares of a company.
Any transactions carried out for or on behalf of the Funds are executed on terms that are best available to
the Funds and which are no less favourable than arm’s length transactions between independent parties.
122
THE SYARIAH ADVISER
(with reference to all the Syariah Funds namely DALI, MIZAN, DALI 2, AZAM and HIKMAH)
What are the Syariah Adviser’s Roles and Responsibilities?
In line with the SC guidelines, the roles of IBFIM as the Syariah Adviser are;
1. ensuring that the Syariah based unit trust funds (“the Funds”) are managed and administered in
accordance with the Syariah principles;
2. providing expertise and guidance for the Funds in all matters relating to Syariah principles, including
on the Funds deed and prospectus, its structure and investment process, and other operational and
administrative matters;
3. consulting the SC who may consult the Syariah Advisory Council where there is any ambiguity or
uncertainty as to an investment, instrument, system, procedure and/or process;
4. scrutinising the Funds’ compliance report as provided by the compliance officer, transaction report
provided by or duly approved by the trustee and any other report deemed necessary for the purpose of
ensuring that the Funds’ investments are in line with the Syariah principles;
5. preparing a report to be included in the Funds’ interim and annual report certifying whether the Funds
have been managed and administered in accordance with the Syariah principles;
6. ensuring that the Funds comply, with any guideline, ruling or decision issued by the SC, with regard
to Syariah matters;
7. vetting and advising on the promotional materials of the Funds;
8. assisting and attending to any ad-hoc meeting called by the SC and/or any other relevant authority;
and
9. having regular quarterly meetings with the Manager on all syariah issues relating to the Islamic
Funds.
BACKGROUND OF ISLAMIC BANKING AND FINANCE INSTITUTE MALAYSIA SDN BHD
(IBFIM)
Islamic Banking and Finance Institute Malaysia Sdn. Bhd. (IBFIM) was incorporated as a private limited
liability company in Malaysia under the Companies Act, 1965 on 13 April 1995 and commenced
operations on 1 August 1995. Its establishment is in line with Malaysia’s target to become a regional and
international Islamic banking and takaful centre. Pursuant to Financial Sector Masterplan (FSMP),
IBFIM emerged as an industry-owned institute to produce well trained, high calibre individuals and
management teams with the required expertise in the Islamic finance industry. Its establishment is in line
with Malaysia’s target to become a regional and international Islamic banking and takaful centre. IBFIM
promotes and facilitates the understanding and appreciation of the philosophy and principles of Islamic
financial system. IBFIM has a staff strength of 40 comprising 31 executives and 9 non-executives and
currently is the syariah adviser to 30 unit trust funds.
The shareholding interests in IBFIM are as follows:
Bank Negara Malaysia (Special Shareholder)
EON Bank Berhad
BIMB Holdings Berhad
Hong Leong Bank Berhad
AmMerchant Bank Berhad
Public Bank Berhad
Malayan Banking Berhad
RHB Bank Berhad
Alliance Bank Malaysia Berhad
Southern Bank Berhad
Affin Bank Berhad
Southern Finance Berhad
Bank Muamalat Malaysia Berhad
Takaful Nasional Sdn. Bhd.
123
Who are the people behind IBFIM?
The Board of Directors of IBFIM consists of:
1. Tan Sri Dato’ Sri Dr. Zeti Akhtar Aziz (Chairman)
2. Tan Sri Dato' Azman Hashim
3. Datuk Amirsham A. Aziz
4. Dato' Ahmad Tajudin Abdul Rahman
5. Dato’ Mohd Fadzli Yusof
6. Dato’ Fadzil Yusoff
7. Encik Bakarudin Ishak
8. Encik Aminuddin Md. Desa
9. Encik Mustapha Hamat (Chief Executive Officer)
The Syariah Advisory Team:
Encik Mustapha Hamat has over 28 years experience in the banking and finance industry, with 19 years
in the Islamic banking field. His major contributions to the industry include the setting up of the first
Syariah-based bank in Malaysia. His involvement in the industry started long before the incorporation of
the first Syariah-based bank in Malaysia. He was deeply involved in laying the framework for the
successful implementation of Syariah-based banking system with the Central Bank of Malaysia. Prior to
joining IBFIM as its CEO, he was the Senior Consultant at the Malaysian Accounting Standards Board
(MASB), developing among others, Islamic Accounting Standards for the country. Prior to his stint at
MASB, he was the General Manager of the Finance Division and later the Retail Banking Division of
Bank Islam Malaysia Bhd. (BIMB), the first Islamic bank in Malaysia. Mustapha is an accountant by
profession. He obtained a Master of Business Administration from Brunel University, United Kingdom
in 1990. He holds a Post-Graduate Diploma in Accounting and a Bachelor in Economics from the
University of Malaya. He also has the Shahada Ulya from Kolej Islam Malaya.
Mohd. Bakir Haji Mansor was appointed as one of the Syariah Advisory Team members in 1995.
Presently he is a member of the Syariah Supervisory Councils of Bank Islam Malaysia Bhd. (BIMB),
Syarikat Takaful Malaysia Bhd. (STMB) and ASEAN Retakaful International (L) Ltd. (ARIL). Prior to
this, he was the Syariah Coordinator of BIMB and the Secretary of the Syariah Supervisory Councils of
BIMB, STMB and ARIL. Before joining Bank Islam in 1984, Mohd. Bakir served at the National
Council for Islamic Religious Affairs in the Prime Minister's Department for 13 years. He was also one
of the Chief Assistant Directors at the Islamic Research Centre for 4 years. He holds a Cambridge
Oversea School Certificate and Shahada Ulya from Kolej Islam Malaya.
Mohammad Khairi Saat has been involved in the banking industry for over six years, with five years in
the Islamic-banking field. Prior to joining IBFIM, Khairi was with one of the leading Malaysian banks
and was involved in the overall development of its Islamic Banking operations. His expertise lies in the
product development of both Islamic financing and deposit, as well as their system development
activities. He graduated from the International Islamic University Malaysia (IIUM) in 1996 with a
Bachelor (Honors) in Business Administration.
Wan Jemizan Wan Deraman Besides being an Assistant Manager in the Education Department, Wan
Jemizan Wan Deraman is also a lecturer of Islamic Studies at IBFIM. Prior to joining IBFIM, he was a
Syariah Adviser of Syarikat Jurutera Perunding ZAABA Sdn. Bhd. Wan Jemizan holds a Bachelor of
Usuluddin (First Class Honours), majoring in Tafsir and Public Administration, from Akademi Pengajian
Islam, University of Malaya.
124
Mohd Nasir Ismail is an Assistant Manager in the Education Department and a lecturer in Usul Fiqh
(Islamic Jurisprudence) at IBFIM. Before joining IBFIM, he was with Institut Pengajian Ilmu-Ilmu
Islam, Kelantan. Mohd Nasir graduated with a Bachelor of Syariah from University of Malaya.
Designated person responsible for the Syariah Advisory of DALI, MIZAN, DALI 2, AZAM and
HIKMAH:
Mohd Bakir Haji Mansor, as afore-mentioned above.
125
11. THE TRUSTEES
Who are the Trustees?
Trustee
Funds
Amanah Raya Berhad
DGF
AmTrustee Berhad
BOF & DALI
Universal Trustee (Malaysia) Berhad
ECO, SF, HGF, SEQUEL, MIZAN, PCF, RBF, CIF, DALI 2,
AZAM, HIKMAH, CRS & EIF
Malaysian Trustees Berhad
INF
What are the Trustees’ main Duties & Responsibilities?
Subject to the Deed and the SC Requirements, each Trustee's duty is to act as custodian of the Funds and
to safeguard the interests of the Unitholders. Each Trustee must ensure that the Funds are managed and
administered in accordance with the Deed, SCA, Guidelines, securities laws and acceptable and
efficacious business practices within the unit trust industry. The Trustees shall keep or cause to be kept
proper books of account in relation to the investment and properties of the Funds and ensure that proper
records are kept for all transactions, dividends, interest and income received and distributed in respect of
the Funds. The Trustees must also ensure that the accounts of the Funds are audited by the approved
Auditors annually and that the Unitholders receive the accounts within the prescribed period.
Retirement, Removal or Replacement of the Trustee
A Trustee must retire as Trustee of the Funds when required to retire by law. A Trustee must retire as
trustee of the relevant Fund when requested to do so by the Manager and on condition that at least 6
months written notice is given to such Trustee or any shorter notice which such Trustee accepts. The
Trustee may also retire by giving the requisite notice period to the Manager or any shorter notice the
Manager accepts. The Manager has a duty to replace a trustee upon the happening of any of the events
stipulated in section 108 of the SCA.
The Trustee must also retire if a special resolution to that effect has been passed by the Unitholders. A
special resolution means a resolution passed at a meeting of Unitholders duly convened in accordance
with the Deed and carried by a majority of not less than seventy five per cent (75%) of the votes cast.
A Trustee may also be replaced in the circumstances set out in section 11.6 of the Deed. A Trustee must
retire if and when requested to do so by the Manager upon the happening of any of the events set out in
the Deed.
126
11. THE TRUSTEES
Powers of the Trustee to Remove, Retire or Replace the Manager
The Manager must retire as manager of the Funds when required to retire by law. The Manager may also
retire by giving the requisite notice period to the Trustee or any shorter notice the Trustee accepts.
On the retirement of the Manager, the Manager may appoint in writing another corporation to be the
manager of the relevant Fund, subject to the approval of the Trustee and any approval required by the SC.
If the Manager does not propose a replacement at least thirty (30) days before the Manager proposes to
retire or the Trustee does not approve of the replacement proposed by the Manager, the Trustee may
appoint a new manager as of the date of the proposed retirement. The appointment will be only be
complete if the new manager executes a deed by which it covenants to be bound by the deed and its
appointment as manager of the fund has been approved by the SC.
Pending the appointment of the new manager, the Trustee, subject to any approval required by law, may
act as manager of the fund but is not obliged to repurchase units in accordance with the deed. For the
period during which the Trustee acts a manager of the fund, it may not issue or offer to the public for
subscription or purchase or invite the public to subscribe for or purchase any units. The issue of units
must cease as soon as reasonably practicable upon the commencement of the period during which the
Trustee commences to act as manager.
Winding up of the Funds
Where the Manager is in liquidation or has, in the opinion of the Trustee, to the prejudice of the
Unitholders failed to comply with any provision or covenant of the Deed or contravened any of the
provisions of the SCA, the Trustee shall convene Unitholders meeting. If a resolution is passed by a
majority in number representing at least three fourths of the value of units held by Unitholders voting at
the said meeting that the a Fund be wound up, the Trustee shall apply to the Court for an order
confirming the resolution.
Trustee’s Willingness to Act and Statement of Responsibility
Each Trustee is willing to assume the position of Trustee for the Funds it is acting for and is responsible
for all obligations and duties as stipulated in the Deed and applicable laws.
Trustee’s Indemnification
Each Trustee is entitled to be indemnified out of the assets of the Fund or Funds it is acting for, for any
liability incurred by the Trustee in performing or exercising any of its powers or duties in relation to that
Fund. This indemnity is in addition to any indemnity available at law, but does not extend to liabilities
arising from a breach of the trust or for failing to show the degree of care and diligence required of a
trustee having regard to its powers, authorities and discretion under the Deed or SC Requirements.
127
11. THE TRUSTEES
BACKGROUND OF AMANAH RAYA BERHAD (ARB)
Amanah Raya Berhad is the Trustee for DGF. ARB was incorporated on 29 May 1995 under the
Companies Act 1965 and Public Trust Corporation Act 1995, and commenced its operation on 1 August
1995. It has an authorised capital of RM10,000,000. Its issued and paid-up capital is RM6,000,002. The
unaudited shareholders’ funds stood at RM46,808,000 with a pre-tax profit of RM1,836,000 for the year
ended 31 December 2003.
ARB is wholly owned by the Minister of Finance (Incorporated). The Board of Directors constitutes the
following:
(i)
Y. Bhg. Dato’ Dusuki Bin Haji Ahmad – Chairman (appointed with effect from 29 December
2003)
(ii)
Encik Izham Bin Yusoff – Managing Director
(iii)
Encik Mohamed Bazain bin Idris – Director
(iv)
Tuan Haji Ab. Gani bin Haron – Director
(v)
Y. Bhg. Datin Aminah Binti Pit Abd Raman – Director
(vi)
Tuan Haji Ahmad Kamal Bin Abdullah Al –Yafii – Director
(vii)
Y. Bhg. Dato’ Wan Ahmad Farid bin Wan Salleh – Director
(viii) Tuan Haji Yaacob bin Hussin – Director
In terms of administration, ARB is headed by a Managing Director and assisted by three General
Managers. It has a staff strength of 363 (100 executives and 263 non-executives) persons nationwide as at
5 January 2004. ARB currently has 57 unit trust schemes under its trusteeship.
The Management Team of ARB
Encik Izham Bin Yusoff, is the Managing Director. He graduated from University of Miami, Coral
Gables, Florida, USA with an MBA and holds a BBA Accounting [specializing in Accounting and
International Business] from the same University. He has wide experience in the field of Accounting and
Financial Management from various multinational companies such as EON Bhd, Maxis Berhad, Citibank
Berhad Malaysia and Procter & Gamble (S) Ltd., Singapore. Presently, he is responsible for the overall
management of Amanah Raya Berhad.
Hajjah Habsah Bt. Bakar is the General Manager, Operations. She graduated from University of
Malaya with a Degree in Law and holds a postgraduate Diploma in Syariah Law and Practice from
International Islamic University. She has vast experience in legal administration since joining the Judicial
and Legal service in 1985. Presently she is responsible for the overall running of the Corporate Trust
Department, Legal Department and Branch Operations.
Encik Sudirman Bin Masduki is the General Manager, Corporate Services. He holds a Master in
Business Administration (MBA) from Universiti Kebangsaan Malaysia and is a Fellow of The
Association of Chartered Certified Accountants United Kingdom. He has vast experience in the fields of
finance and accounting from Jabatan Akauntan Negara Malaysia. Presently, he is responsible for the
overall running of the Finance and Accounts Department, Information Technology Department,
Investment Department and Human Resources and Administration Department.
Encik Rafie Bin Omar is the General Manager, Sales and Marketing. He has a Diploma in Law from
MARA Institute of Technologies (ITM) Shah Alam and a LLB Degree from the University of
Melbourne, Australia. He was admitted as an Advocate & Solicitor of the High Court of Malaya in
March 1989. From private law practice, he served Malaysian Resources Corporation Berhad (MRCB) for
about six years since 1994, as legal advisor in its Business Development and Corporate Affairs division.
He represented MRCB as one of the directors of KL Sentral Sdn. Bhd. In March 2000 he joined the legal
team of Pengurusan Danaharta Nasional Berhad, specializing in property matters. Encik Rafie joined
Amanah Raya Berhad in September 2001 and is responsible for the overall running of the Marketing and
Corporate Communications Department, Product Development Department and Sales Department.
128
11. THE TRUSTEES
Encik Mohd. Ishak Bin Sulaiman is the Manager, Finance and Accounts Department. He holds a
Degree in Accounting from Universiti Kebangsaan Malaysia (UKM) and a member of Malaysian
Institute of Accountant (MIA). He has been with Amanah Raya Berhad since September 1995. He has
gained extensive experience in the fields of finance and accounting when he was attached to Jabatan
Akauntan Negara.
Encik Mohd. Ridzuan Bin Taib is the Manager, IT Department. He holds a Degree in Computer Science
(UTM) and a Masters Degree in Business Administration from University of Hull, United Kingdom. He
joined Amanah Raya Berhad in December 1990 and assumed the present position since August 1995.
Puan Wan Numzila Binti Wan Junuh is the Manager, Legal Department. She graduated from the
International Islamic University, Kuala Lumpur with a Degree in Law (LLB). She joined the company in
July 1997. She was appointed by the Board of Director to exercise the functions of the company secretary
from July 1997 to July 2000.
Encik Zainudin Bin Suhaimi is the Manager, Corporate Trust Department. He holds a Degree in
Business Administration (Finance) from University Putra Malaysia and a Diploma in Business Studies
from Universiti Teknologi MARA (UiTM) and joined Amanah Raya Berhad since 1992. He is in charge
of the operations of the Corporate Trust Department.
Puan Nurul Hayati binti Zawawi is the Senior Executive. She holds a Degree in Law from Universiti
Teknologi MARA (UiTM) and joined Amanah Raya Berhad since 1992. Prior to joining Amanah Raya
Berhad, she was a Registrar at the Sessions Court, Perlis. She is attached to the Corporate Trust
Department and responsible in overseeing compliance matters of Unit Trust Funds.
Encik Zainul Abidin Bin Hj Ahmad is the Company Secretary. He has more than 10 years’ working
experience in legal and secretarial matters. He began his career in 1990 as a Legal Assistant with Messrs.
Kam Woon Wah & Co. In February 2002, he joined ARB where he oversees the secretarial matters of the
Group.
ARB’s financial highlights are as follows:
Unaudited
31.12.2003
Year Ended
31.7.2002
Year Ended
31.7.2001
Year Ended
31.7.2000
RM
RM
RM
RM
Paid-up capital (RM ‘000)
6,000
6,000
6,000
6,000
Shareholders’ Funds (RM ‘000)
46,808
47,156
40,471
33,728
Turnover (RM ‘000)
29,109
27,813
24,784
16,991
Pretax profit (RM ‘000)
1,836
10,005
10,649
3,156
Profit after taxation (RM ‘000)
1,322
7,284
7,344
2,025
Earnings per share (RM)
0.22
1.21
1.22
0.34
Net dividend per share (RM)
0.10
0.10
0.10
0.10
129
11. THE TRUSTEES
BACKGROUND OF AmTRUSTEE BERHAD (AmTB)
The Trustee of DALI and BOF is AmTrustee Berhad (AmTB) with its registered office at 22nd Floor,
Bangunan AmBank Group, 55, Jalan Raja Chulan, 50200 Kuala Lumpur. AmTB was incorporated on 28
July 1987 and commenced its operations in March 1992. AmTB has an authorised share capital of
RM1,000,000 and a paid-up share capital of RM500,000. The shareholders funds stood at RM2,471,589
with a pre-tax profit of RM461,010 for the year ended 31 March 2003. AmTB has been involved in the
unit trust industry as a trustee since 1997. To date, AmTB employs 37 staff comprising 14 executives and
23 non-executives and currently has, in addition to the said Funds, 17 other unit trusts funds under its
trusteeship.
The shareholders and percentage of shareholding:
Shareholders
AmMerchant Bank Berhad
Shareholding (%)
20
AmFinance Berhad
20
Arab-Malaysian Credit Berhad
20
AmSecurities Holding Sdn Bhd
20
AMDB Factoring Sdn Bhd
20
The Board of Directors constitutes the following:
Chairman
Puan Fauziah binti Yacob
Directors
Dato’ Jaspal Singh s/o Sher Singh
Madam Amarjeet Kaur d/o Ranjit Singh
Madam Pushparani d/o A Moothathamby
Independent Directors
Dato’ Syed Mohd Yusof Bin Tun Syed Nasir
Tuan Haji Mohd Idris Bin Mohd Isa
THE MANAGEMENT TEAM OF AmTB
Dato’ Jaspal Singh s/o Sher Singh (Chief Executive Officer cum Director)
He is a Fellow Member of the Association of Chartered Certified Accountants (ACCA) and has been
with the AmBank Group since October 1981, having served the Asset Administration, Internal Audit,
Treasury Department, Arab-Malaysian Investment Management Section (AMIM) and Share Registrar
Unit. Besides heading AmTrustee Berhad, he also currently heads the Custodian/Nominees Services
within AmMerchant Bank Berhad.
Ms Azlinda Abdul Manaf (Manager)
Ms Azlinda holds a Bachelor of Arts with Honours in Accounting and Finance from SouthBank
University of London. Prior to joining AmTrustee Berhad, she was with Pengkalen Securities as a
Dealer’s Representative.
Ms Sharon Khaw Cheng Sim (Assistant Manager)
Prior to her appointment at AmTrustee Berhad, she was the Head of Share Margin Trading Unit at United
Overseas Bank (M) Bhd and before that, as Operation Assistant Manager at Inter-Pacific Securities Sdn
Bhd. She once served Arab-Malaysian Merchant Bank Berhad as Marketing Officer.
130
11. THE TRUSTEES
AmTB’s financial highlights are as follows:
Year Ended
Year Ended
Year Ended
31.03.2003
31.03.2002
31.03.2001
RM
RM
RM
500,000
500,000
500,000
2,471,589
2,262,373
1,786,990
Turnover
2,607,896
1,879,056
774,348
Pretax profit/(loss) (RM’000)
461,010
690,514
605,569
Profit/(loss) after tax
209,216
475,383
432,800
Earnings per share
0.5124
0.9508
0.8656
-
-
-
Paid-up capital (RM’000)
Net dividend per share
Delegation of Share Custodial Functions to AMMB Nominees (Tempatan) Sdn Bhd
(“AMMBN(T)SB”)
AmTB has delegated the Share Custodial functions to AMMBN(T)SB to utilize AMMBN(T)SB
information systems and to ensure real time notification of settlements and transfer of securities and also
to reduce the risks of settlement of securities.
AMMBN(T)SB, a fully owned subsidiary of AmMerchant Bank Berhad and Authorised Depository
Member (“ADM”) of Malaysian Central Depository Sdn Bhd (“MCD”), was set up to assist investment
advisors, managers of large international portfolios, lending banks and international custodians in the
movement and management of cash and securities and providing clients with real-time notification of
settlements and reports tailored to clients’ requirements.
AMMBN(T)SB is equipped with CAMRA 2000 system (Complete Accounting and Management
Reporting System) an intergrated and on-line system designed to meet clients’ operations and enhance
the Custodian functions.
131
11. THE TRUSTEES
BACKGROUND OF UNIVERSAL TRUSTEE (MALAYSIA) BERHAD (UTMB)
Universal Trustee (Malaysia) Berhad (UTMB) is the trustee for ECO, SF, HGF, SEQUEL, MIZAN,
PCF, RBF, CIF, DALI 2, AZAM, HIKMAH, CRS and EIF. UTMB was incorporated on 5 March 1974
under the Companies Act, 1965. It has an authorised capital of RM5, 000,000 divided into 500,000
ordinary shares of RM10 each of which 100,000 ordinary shares of RM10 each are issued and RM5
called and paid-up. The unaudited shareholders funds and pre-tax profit stood at RM4,143,474 and
RM1,1581,071 respectively as at 30 September 2003.
The shareholding interests in UTMB are as follow:
Shareholders
Syarikat Pesaka Antah Sdn Bhd
Estate of Tun Mohamad Suffian bin Haji Mohamed Hashim
Shearn Delamore Services Sdn Bhd
Achico Sdn Bhd
Datuk Haji Burhanuddin bin Ahmad Tajudin
Putri Noor Shariza binti Noordin Omar.
% of equity
20
20
14
20
20
6
UTMB has more than ten years of experience in the unit trust industry. It has steadily continued to grow
over the years and currently employs 36 staff, which comprises 19 executives and 17 non-executives. As
at 5 January 2004, it has 34 unit trust funds under its trusteeship.
(i)
Datuk Haji Burhanuddin bin Ahmad Tajuddin
(ii)
Y.A.M. Tunku Dato’ Seri Nadzaruddin Ibni Tuanku Ja’afar
(iii)
Dato’ Francis Huang Chang Hsun
(iv)
Putri Noor Shariza binti Noordin Omar (alternate : Grace Yeoh Cheng Geok)
The Management Team of UTMB
Mr Liew Kok Wah is the General Manager cum Company Secretary of UTMB. He joined UTMB in July
1988 and is responsible for the overall management of UTMB. He is a Fellow Member of the Chartered
Institute of Management Accountants (CIMA), England; a Registered Accountant of the Malaysian
Institute of Accountants (MIA) and a Member of the British Institute of Management, England. He
started his career as an Assistant Accountant with McAlister & Co Ltd from 1971 to 1974 and upon
completion of the CIMA examination in 1978, he was appointed as the Senior Management
Accountant/Lecturer in the London School of Accountancy, England, till October 1982. Upon his return
to Malaysia he was the Group Finance and Administration Manager with the Harpers Group till June
1983, before joining Faber Merlin Berhad as the Group Management Accountant from 1986 till June
1988, and was also the Director of Studies in the Goon Professional Centre Sdn Bhd.
Ms Punithamalar d/o Veluppillai is the Manager and is an Associate Member of the Association of
Chartered Certified Accountants (ACCA). Prior to joining UTMB in 1994, she was handling accounts
and tax matters for one of the subsidiaries of Tanjung Plc. In 1997, she joined EON Berhad and was
assisting the treasury department. In 1998 she was appointed as the Assistant Manager in UTMB. She is
now responsible for supervising the overall functions of UTMB.
Ms Low Lai Chee is the Assistant Manager and is an Associate Member of the Chartered Institute of
Secretaries and Administrators, England. Prior to her joining UTMB in 1994, she has had more than ten
years of experience in nominee services with a wholly owned subsidiary of a public listed company. She
is currently assisting in supervising the overall functions of UTMB.
132
11. THE TRUSTEES
Ms Agnes Lai Yoke Ping is a Senior Trust Officer and an Associate Member of the Chartered Institute of
Management Accountants, England. Prior to her present appointment in 1996, she has more than 10 years
of working experience in the finance and administration division with a wholly owned subsidiary of a
public listed company. She has been handling unit trust matters since joining UTMB and is currently
responsible for the compliance division of unit trust funds as well as administrative functions of UTMB.
Mr Suresh Kumar is a Legal Executive. He joined UTMB in September 2000 and holds a law degree
from Bond University, Australia. He is responsible for the overall legal and compliance affairs of UTMB
with the relevant authorities. Prior to joining UTMB he was a partner with an established law firm and
was in charge of corporate matters, litigation, conveyancing and the administration and management of
the firm.
UTMB’s financial highlights are as follows:
Unaudited
30 Sept 2003
Year Ended
31 Dec 2002
Year Ended
31 Dec 2001
Year Ended
31 Dec 2000
RM
RM
RM
RM
500,000
500,000
500,000
500,000
Shareholders’ Funds
4,143,474
3,475,215
3,097,510
2,509,895
Turnover
2,937,034
3,466,082
2,953,420
2,771,031
Pretax profit
1,581,071
1,232,705
867,600
940,928
Profit after tax
1,138,371
881,705
587,615
622,901
Paid-up capital
133
11. THE TRUSTEES
BACKGROUND OF MALAYSIAN TRUSTEES BERHAD (MTB)
The Trustee of INF is Malaysian Trustees Berhad (MTB). MTB was incorporated in January 1975 and
commenced operations in August 1995. MTB has an authorised and paid-up share capital of RM550,000.
The unaudited shareholders funds stood at RM2,524,000 with a pre-tax profit of RM1,299,000 for the
year ended 31 December 2003. OCBC Bank (M) Berhad’s Nominee Services Department (“NSD”) is
presently the sub-custodian acting on behalf of MTB. MTB currently has the staff strength of 11 (9
executives and 2 non-executives) and has 4 funds under its trusteeship as at 5 January 2004.
The shareholders and percentage of shareholding:
Shareholders
PacificMas Berhad
(formerly known as “The Pacific Bank Berhad”)
%
20.00
OCBC Bank (Malaysia) Berhad
20.00
United Malacca Berhad
(formerly known as “The United Malacca Rubber Estates Berhad”)
20.00
Perspective Master Sdn Bhd
15.45
PacificMas Management Sdn Bhd
3.64
Others
20.91
(i)
(ii)
(iii)
(iv)
Mr Choi Siew Hong
Mr Chua Ngoh Chuan
Mr Chong Chin Kuan
Mr Lai Wan
THE MANAGEMENT TEAM OF MTB
Mr Wong Hung Kok is the General Manager. He is responsible for the overall management and
development of MTB. My Wong is a graduate of Nanyang University, Singapore with a First Class
Honours in Chemistry and subsequently, an MBA from the Asian Institute of Management, Phillipines.
Before joining MTB, he was the Senior Vice President of the then Pacific Bank Berhad and later joined
Maybank as Assistant General Manager, Middle Market.
Ms Vanaja d/o N.S. Kanagaretnam is the Deputy Manager. She graduated with a Diploma in
Accountancy from Politeknik Ungku Omar. Prior to joining MTB, she was with another trustee
company, responsible for trustee work relating to unit trust funds and is familiar with trustee duties and
the guidelines established by the Companies Commission of Malaysia and Securities Commission. She
has been with MTB since August 1995.
Ms Wong Chooi Yin, Senior Executive, Finance and Administration joined MTB in April 2000 as
Executive, Finance and Administration. Her duties include the maintenance of all trust accounts ad
records as well as the accounts of MTB. She is also responsible for the administration matters of
Company. Ms Wong graduated with Bachelor of Commerce (Economics and Finance) degree from the
Curtin University of Technology, Australia. Prior to joining MTB, she was attached with a consultancy
firm.
134
11. THE TRUSTEES
Ms Tan Siok Leng joined MTB as Executive, Finance and Administration. She assists Ms Wong Chooi
Yin in the maintenance of trust accounts and related administrative matters. Prior to joining MTB, she
was a sales executive with a leading local educational institution. Ms Tan is a graduate from University
of Abertay Dundee, Scotland with Bachelor of Arts (Hons) degree in Business Administration.
En. Shaik Azrul Shaik Daud is the Legal Executive. He is responsible for the legal affairs of the
Company. He graduated with an LLB (Hons) from the International Islamic University and was called to
the Bar on July 1997. Prior to joining MTB, he was attached to a local bank in the Legal Department. He
joined MTB in 2003.
Ms Su Ee Juen is the Legal Executive. She is assisting in the legal affairs of the Company. She
graduated with an LLB (Hons) University of Nottingham and an MSC in Corporate Risk & Security
Management from the University of Southampton. Prior to joining MTB, she was attached to a trustee
company in the Legal and Compliance division. She joined MTB in 2003.
Ms Gayathri Devi is the Documentation and Compliance Executive. She is responsible for safekeeping
of the security documents and all the compliance matters of the Company. She graduated with LLB
(Hons) from University of Anglia Polytechnic (UK). Prior to joining MTB, she was attached to the Credit
Card Recovery Department of Southern Bank.
Ms Leong Pui See is the Executive, Securities and Settlement of MTB. She is responsible for all
securities dealings and settlements relating to unit trust and private trust funds. Prior to joining MTB, she
was attached to a local stockbroking firm and nominees companies.
Mr Wong Ching Fai is the Executive, Securities and Settlement of MTB. He is responsible for all
securities dealings and settlements relating to unit trust and private trust funds. Mr Wong graduated from
the University Science Malaysia with a Bachelor of Management (Hons) degree in Finance. Prior to
joining MTB, he was attached with another trustee company.
MTB’s financial highlights are as follows:
Year Ended
(Unaudited)
31.12.2003
Year Ended
Year Ended
31.12.2002
31.12.2001
Year Ended
31.12.2000
RM
RM
RM
RM
550
550
550
550
2,524
1,738
1,546
1,174
Turnover (RM’000)
2,133
1,315
922
595
Profit before Tax (RM’000)
1,299
687
518
420
Profit after Tax (RM’000)
857
488
366
319
Net Earning per share
8.57
4.44
3.32
2.90
Paid-up capital (RM’000)
MTB’s Delegate
MTB has delegated its custodian function to OCBC Custody, Group Transaction Banking, a unit within
OCBC Bank (M) Berhad. OCBC Custody commenced operations in 1965 and has been appointed as
custodian for unit trust funds since 2000. It provides an extensive range of personal, commercial,
corporate, custodial and treasury services. OCBC has a staff strength of 15 employees comprising 11
executives and 3 non-executives as at 1 November 2003.
135
12. TAXATION ADVISER’S LETTER ON TAXATION OF THE FUNDS
AND UNITHOLDERS
(Prepared for inclusion in this Master Prospectus)
PricewaterhouseCoopers Taxation Services Sdn Bhd
11th Floor, Wisma Sime Darby
Jalan Raja Laut
P.O.Box 10192
50706 Kuala Lumpur
The Board of Directors
SBB Mutual Berhad (formerly known as BHLB Pacific Trust Management Berhad)
50, 52 & 54 Jalan SS21/39
Damansara Utama
47400 Petaling Jaya
16 January 2004
Dear Sirs,
TAXATION OF THE FOLLOWING:I. SBB DOUBLE GROWTH FUND (FORMERLY KNOWN AS BHLB PACIFIC DOUBLE
GROWTH FUND);
II. SBB EMERGING COMPANIES GROWTH FUND (FORMERLY KNOWN AS BHLB
PACIFIC EMERGING COMPANIES GROWTH FUND);
III. SBB SAVINGS FUND (FORMERLY KNOWN AS BHLB PACIFIC SAVINGS FUND);
IV. SBB HIGH GROWTH FUND (FORMERLY KNOWN AS BHLB PACIFIC HIGH
GROWTH FUND);
V. SBB DANA AL-IHSAN (FORMERLY KNOWN AS BHLB PACIFIC DANA AL-IHSAN);
VI. SBB DANA AL-MIZAN (FORMERLY KNOWN AS BHLB PACIFIC DANA ALMIZAN);
VII. SBB HGF SEQUEL FUND (FORMERLY KNOWN AS BHLB PACIFIC HGF SEQUEL
FUND);
VIII. SBB DANA AL-IHSAN 2 (FORMERLY KNOWN AS BHLB PACIFIC DANA AL-IHSAN
2);
IX. SBB DANA AL-AZAM (FORMERLY KNOWN AS BHLB PACIFIC DANA AL-AZAM);
X. SBB DANA AL-HIKMAH (FORMERLY KNOWN AS BHLB PACIFIC DANA ALHIKMAH);
XI. SBB CRYSTAL EQUITY FUND;
XII. SBB EQUITY INCOME FUND AND UNITHOLDERS
This letter has been prepared for inclusion in the Master Prospectus to be dated 16 January 2004 in
connection with the offer of units in the SBB Double Growth Fund, SBB Emerging Companies Growth
Fund, SBB Savings Fund, SBB High Growth Fund, SBB Dana Al-Ihsan, SBB Dana Al-Mizan, SBB
HGF Sequel Fund, SBB Dana Al-Ihsan 2, SBB Dana Al-Azam, SBB Dana Al-Hikmah, SBB Crystal
Equity Fund and SBB Equity Income Fund (“the Funds”).
136
AND UNITHOLDERS
The taxation of income for both the Funds and the Unitholders are subject to the provisions of the
Malaysian Income Tax Act 1967 (“the Act”). The applicable provisions are contained in
Section 61 of the Act, which deals specifically with the taxation of Trust bodies in Malaysia.
TAXATION OF THE FUNDS
The Funds will be regarded as resident for Malaysian tax purposes since the Trustees of the Funds are
resident in Malaysia.
The income of the Funds consisting of dividends, interest or profit1 (other than interest and profit1 which
are exempt from tax) and other investment income derived from or accruing in Malaysia, after deducting
tax allowable expenses, is liable to Malaysian income tax at the rate of 28 per cent.
Gains on disposal of investments by the Funds will not be subject to income tax.
Tax Credit
Dividends received by the Funds would have suffered tax deduction at source at 28 per cent, unless
specific exemptions apply e.g. pioneer dividends. No additional tax will be payable by the Funds on the
dividends. However, such tax or part thereof will be refundable to the Funds if the total tax so deducted at
source exceeds the tax liability of the Funds.
Exempt Income
Income of the Funds in respect of dividends received from overseas investment is exempt from
Malaysian tax by virtue of Income Tax (Exemption)(No. 48) Order 1997 and distributions from such
income will be tax exempt in the hands of the Unitholders.
The Funds may receive Malaysian dividends which are tax exempt. The exempt dividends may be
received from investments in companies which had previously enjoyed or are currently enjoying the
various tax incentives provided under the law. The Funds will not be taxable on such exempt income.
Interest income or profit1 derived from the following investments are exempt from tax:
(a)
Securities or bonds issued or guaranteed by the Government;
(b)
Debentures, other than convertible loan stock approved by the Securities Commission;
(c)
Bon Simpanan Malaysia issued by Bank Negara Malaysia;
(d)
Bonds, other than convertible loan stock, paid or credited by any company listed in Malaysia
Exchange of Securities Dealing and Automated Quotation Berhad; and
(e)
Interest or profit1 paid or credited by any bank or financial institution licensed under the Banking
and Financial Institutions Act 1989 or the Islamic Banking Act 1983.
The interest income or profit1 exempted from tax at the Funds’ level will also be exempted from tax upon
distribution to the Unitholders.
1
For SBB Dana Al-Ihsan, SBB Dana Al-Mizan, SBB Dana Al-Ihsan 2, SBB Dana Al-Azam, SBB Dana
Al-Hikmah profit received in lieu of interest, in transaction conducted in accordance with the Principles
of Syariah will be treated as interest for purposes of taxation.
137
AND UNITHOLDERS
TAXATION OF UNITHOLDERS
Unitholders will be taxed on an amount equivalent to their share of the total taxable income of the Funds
to the extent of the distributions received from the Funds. The income distribution from the Funds will
carry a tax credit in respect of the tax paid by the Funds. Unitholders will be entitled to utilise the tax
credit against the tax payable on the income distribution received by them. No additional withholding tax
will be imposed on the income distribution from the Funds.
Corporate Unitholders, resident and non-resident, will generally be liable to income tax at 28 per cent on
distribution of income received from the Funds. The tax credits attributable to the distribution of income
can be utilised against the tax liabilities of these Unitholders.
Individuals and other non-corporate Unitholders who are tax resident in Malaysia will be subject to
income tax at graduated rates ranging from 1 percent to 28 per cent. Individuals and other non-corporate
Unitholders who are not resident in Malaysia will be subject to income tax at 28 per cent. The tax credits
attributable to the distribution of income will be utilised against the tax liabilities of these Unitholders.
Non-resident Unitholders may also be subject to tax in their respective jurisdictions and depending on the
provisions of the relevant tax legislation and any double tax treaty with Malaysia, the Malaysian tax
suffered may be creditable in the foreign tax jurisdictions.
The distribution of exempt income and gains arising from the disposal of investments by the Funds will
be exempted from tax in the hands of the Unitholders.
Any gains realised by Unitholders (other than dealers in securities, insurance companies or financial
institutions) on the sale or redemption of the units are treated as capital gains and will not be subject to
income tax.
Unitholders electing to receive their income distribution by way of investment in the form of new units
will be regarded as having purchased the new units out of their income distribution after tax.
Unit splits distributed by the Funds are not taxable in the hands of Unitholders.
Zakat will only be deducted from income distributions made by SBB Dana Al-Ihsan, SBB Dana AlMizan, SBB Dana Al-Ihsan 2, SBB Dana Al-Azam and SBB Dana Al-Hikmah conducted in accordance
with the Principles of Syariah to Unitholders who are Muslim individuals. The zakat deducted is allowed
as a credit against the income tax payable by the Muslim individuals.
We hereby confirm that the statements made in this report correctly reflect our understanding of the tax
position under current Malaysian tax legislation. We recommend that investors obtain independent advice
on the tax issues associated with their investments in the Funds.
Yours faithfully,
for and on behalf of
PRICEWATERHOUSECOOPERS TAXATION SERVICES SDN BHD
Frances Po
Executive Director
PricewaterhouseCoopers Taxation Services Sdn Bhd have given their written consent to the inclusion of
their report as Taxation Adviser in the form and context in which it appears in this Master Prospectus and
have not withdrawn such consent prior to the delivery of a copy of this Master Prospectus for approval.
138
AND UNITHOLDERS
16 January 2004
The Directors
SBB Mutual Berhad
No 50, 52 & 54, Jalan SS 21/39
Damansara Utama
47400 Petaling Jaya
Dear Sirs
TAXATION OF THE FUND AND UNITHOLDERS
1. SBB RETIREMENT BALANCED FUND
2. SBB COMPOSITE INDEX FUND
3. SBB BOND FUND
4. SBB INDEX-LINKED FUND
5. SBB PREMIUM CAPITAL FUND
1.
This letter has been prepared for the information of prospective investors in each Fund as
mentioned above. A summary of this letter as set out in the Appendix attached is included in the
Master Prospectus in connection with the offer of units of interest in the said Fund.
2.
TAXATION OF THE FUND
The Fund will be regarded as a trust resident for Malaysian tax purposes as the Trustees of the
Fund are resident in Malaysia.
The income of the Fund in respect of dividends, interest income and other investment income
derived from or accruing in Malaysia is liable to Malaysian income tax at the rate of 28%. The
Fund will receive dividends from Malaysian companies which would have suffered tax deducted
at source at 28% so that no additional tax will be payable by the Fund on the dividends received.
Part of the tax deducted at 28% will be refundable to the Fund by virtue of deduction of
allowable expenses.
Deductions in respect of manager’s remuneration, maintenance of register of Unitholders, share
registration expenses, secretarial, audit and accounting fees, telephone charges, printing and
stationery costs and postage are allowed based on a formula subject to a minimum of 10% and a
maximum of 25% of the expenses.
Any income derived by the Fund from sources outside Malaysia and received in Malaysia is
exempt from income tax pursuant to the Income Tax (Exemption)(No. 48) Order, 1997 with
effect from year of assessment 1998. The aforesaid tax exempt income that is distributed by the
Fund will be exempt from tax in the hands of the Unitholders. Corporate Unitholders receiving
the exempt dividend may in turn declare the tax exempt dividends to their shareholders as a
second tier exempt dividend.
Gains from realisation of investment and exempt income
Profit on disposal of investments by the Fund will not be subject to income tax. Tax exempt
dividends received from investment in Malaysian companies which had previously enjoyed or
are currently enjoying tax incentives are also not subject to income tax. The Fund is, however,
liable to real property gains tax under the Real Property Gains Tax Act, 1976 in respect of gains
from the sale of chargeable assets (including landed properties and shares in real property
companies) as defined in the Real Property Gains Tax Act, 1976.
139
AND UNITHOLDERS
3.
TAXATION OF UNITHOLDERS
a)
Taxable distribution
Unitholders will be taxed on an amount equivalent to their share of the total taxable
income of the Fund, to the extent such income is distributed to them. Taxable
distributions carry a tax credit in respect of the tax chargeable on the Fund. The tax credit
which is attributable to the income distributed to the Unitholders will be available for set
off against tax payable by the Unitholders. The Unitholders will be subject to tax on an
amount equal to the net distribution proceeds plus underlying tax paid by the Fund.
Corporate Unitholders, resident or non-resident, will be liable to income tax at 28% on
distributions of income from the Fund. The tax credit attaching to distributions of income
may be utilised against the tax liabilities of these Unitholders.
Individuals and other non-corporate Unitholders who are Malaysian tax residents will be
taxed at progressive rates ranging from 0% to 28%. Individuals who are non-residents in
Malaysia will be subject to income tax at 28%.
4.
b)
Tax exempt distribution
The distribution of gains arising from the disposal of investments and other exempt
income earned by the Fund will be exempt from tax in the hands of the Unitholders.
c)
Transfer or redemption of units
Any gains realised by Unitholders (other than persons trading or dealing in securities,
insurance companies or financial institutions) on the transfers of the Units or redemption
of the Units are treated as capital gains and will not be subject to Malaysian taxes.
d)
Reinvestment of distribution
Unitholders electing to receive their income distribution by way of investment in the
form of the purchase of new Units will be regarded as having purchased the new Units
out of their income distribution after tax.
e)
Units Split
Units Split issued by the Fund will be exempt from tax in the hands of the Unitholders.
We hereby confirm that the statement made in this letter correctly reflects our understanding of
the tax position under current Malaysian tax laws.
Yours faithfully
NG KIM LIAN
Executive Director
140
AND UNITHOLDERS
APPENDIX
TAXATION OF THE FUND AND UNITHOLDERS
1. SBB RETIREMENT BALANCED FUND
2. SBB COMPOSITE INDEX FUND
3. SBB BOND FUND
4. SBB INDEX-LINKED FUND
5. SBB PREMIUM CAPITAL FUND
Corporate Unitholders, resident or non-resident, will be liable to income tax at 28% on distributions of
income from the Fund. The tax credit attaching to distributions of income may be utilised against the tax
liabilities of these Unitholders.
Individuals and other non-corporate Unitholders who are Malaysian tax residents will be taxed at
progressive rate ranging from 0% to 28%. Individuals who are non-residents in Malaysia will be subject
to income tax at 28%.
There is no withholding tax on distributions made to non-resident Unitholders.
Distributions made out of gain from realisation of investments (which are not chargeable assets under the
Real Property Gains Tax Act, 1976) and other exempt income of the Fund, bonus units issued by the
Fund and gains made from the realisation of unit by Unitholders who are not dealers in securities, will
not be taxable in the hands of the Unitholders.
The Fund will be taxed at the rate of 28% on dividends, interest and other income derived from or
accruing in Malaysia, after deducting allowable expenses. Expenses being the manager’s remuneration,
maintenance of the register of Unitholders, share registration expenses, secretarial, audit and accounting
fees, telephone charges, printing and stationery costs and postage, which are not allowed under the
general deduction rules, are allowed as a special deduction, subject to a maximum of 25% and a
minimum of 10% of such expenses.
Tax deducted at source from the Malaysian dividends is credited against the tax liability of the Fund.
Any income derived by the Fund from sources outside Malaysia and received in Malaysia is exempt from
income tax pursuant to the Income Tax (Exemption)(No. 48) Order, 1997 with effect from year of
assessment 1998. The aforesaid tax exempt income that is distributed by the Fund will be exempt from
tax in the hands of the Unitholders. Corporate Unitholders receiving the exempt dividend may in turn
declare the tax exempt dividends to its shareholders as a second tier exempt dividend.
As mentioned above, the Fund may also receive other income which is exempt or otherwise not subject
to tax, including gains from the realisation of investments which are not chargeable assets under the Real
Property Gains Tax Act, 1976.
Date: 16 January 2004
141
13. ACCOUNTANTS' REPORTS FOR FUNDS
SBB Mutual Berhad
(formerly known as BHLB Pacific Trust Management Berhad)
50, 52 & 54, Jalan SS21/39
Damansara Utama
47400 Petaling Jaya
16 January 2004
PwC/DK/mk/1182J
Dear Sirs,
INTRODUCTION
1
We, as Reporting Accountants of the following funds managed by SBB Mutual Berhad, formerly known as
BHLB Pacific Trust Management Berhad (“the Company”) have prepared this Report for inclusion in the
Master Prospectus to be dated 16 January 2004 in connection with the offer of units in these funds :(i)
SBB Double Growth Fund, formerly known as BHLB Pacific Double Growth Fund (‘DGF’)
(ii)
SBB Emerging Companies Growth Fund, formerly known as BHLB Pacific Emerging Companies
Growth Fund (‘ECO’)
(iii) SBB Savings Fund, formerly known as BHLB Pacific Savings Fund (‘SF’)
(iv) SBB High Growth Fund, formerly known as BHLB Pacific High Growth Fund (‘HGF’)
(v)
SBB Dana Al-Ihsan, formerly known as BHLB Pacific Dana Al-Ihsan (‘DALI’)
(vi) SBB Dana Al-Mizan, formerly known as BHLB Pacific Dana Al-Mizan (‘MIZAN’)
(vii) SBB HGF Sequel Fund, formerly known as BHLB Pacific HGF Sequel Fund (‘SEQUEL’)
(viii) SBB Dana Al-Ihsan 2, formerly known as BHLB Pacific Dana Al-Ihsan 2 (‘DALI2’)
(ix) SBB Dana Al-Azam, formerly known as BHLB Pacific Dana Al-Azam (‘AZAM’)
(x)
SBB Dana Al-Hikmah, formerly known as BHLB Pacific Dana Al-Hikmah (‘HIKMAH’)
(xi) SBB Crystal Equity Fund (‘CRS’)
(xii) SBB Equity Income Fund (‘EIF’)
The change in the name of the Manager and the Funds were effected on 7 May 2003 and 23 June 2003
respectively.
Pursuant to a Vesting Order obtained from the High Court under Section 124B of the Securities
Commission Act 1993, the funds under the management of BHLB Asset Management Sdn Bhd have
been vested under the management of SBB Asset Management Sdn Bhd with effect from 1 July 2003.
142
2. We are the Reporting Accountants and auditors of the aforesaid funds managed by the Company except
for the following funds which are audited and reported by Deloitte KassimChan :(i)
(ii)
(iii)
(iv)
(v)
3
SBB Bond Fund, formerly known as BHLB Pacific Bond Fund (‘BOF’)
SBB Index-Linked Fund, formerly known as BHLB Pacific Index-Linked Fund (‘INF’)
SBB Premium Capital Fund (‘PCF’)
SBB Retirement Balanced Fund (‘RBF’)
SBB Composite Index Fund (‘CIF’)
The funds presently managed by the Company are DGF, ECO, SF, HGF, DALI, BOF, INF, MIZAN,
SEQUEL, PCF, RBF, CIF, DALI2, AZAM, HIKMAH, CRS AND EIF
All the above Funds are currently governed under the provisions of the Fourth Supplemental Deed (to the
Master Deed dated November 23, 2001) as may be amended from time to time.
4 DISTRIBUTION
Details of income distribution together with the buying and selling prices at the date of distribution made
by the Funds audited by PricewaterhouseCoopers for the past five financial years, where applicable are
set out below:
Date of
distribution
Date of
payment
Gross
distribution
per unit
Sen
Amount of
distribution
(gross)
RM’000
Buying
price per
unit (xd)
RM
Selling
price per
unit (xd)
RM
3,998
48,377
0.59
0.7613*
0.64
0.8108*
DGF
No income distribution for the past five financial years.
ECO
SF
18 September 1998
27 June 2003
16 October 1998
11 July 2003
3.50
10.00
HGF
DALI, MIZAN, SEQUEL, DALI 2, AZAM, HIKMAH, CRS AND EIF
No income distribution since commencement.
* Note: Published prices are rounded up to 4 decimal points w.e.f. 2 May 2000.
143
5. UNIT SPLIT
Details of unit split made by the Funds audited by PricewaterhouseCoopers for the past five financial
years, where applicable are set out below:
Date of unit split
Rate of unit split
DGF
No unit split for the past five financial years.
ECO
22 July 1999
25 September 2000
24 September 2001
15 : 100
15 : 100
7 : 100
SF
25 June 1999
16 October 2000
10 December 2001
15 : 100
12 : 100
10 : 100
HGF
19 August 1999
22 October 2001
1:5
5 : 100
DALI
26 January 1999
15 June 1999
7 September 2000
20 January 2003
1:4
1:4
1:4
15 : 100
MIZAN
24 June 2002
25 April 2003
10 : 100
10 : 100
SEQUEL
10 May 2002
28 March 2003
15 : 100
15 : 100
DALI 2, AZAM, HIKMAH, CRS, EIF
No unit split since its commencement.
144
INFORMATION ON THE FUNDS
6
SBB Double Growth Fund (formerly known as BHLB Pacific Double Growth Fund)
(a)
Audited financial statements
The financial statements of DGF for the financial years ended 30 April 2003, 30 April 2002, 30
April 2001, 30 April 2000 and 30 April 1999 were audited and reported on by us without any
qualification.
(b)
Statements of income and expenditure
The extract of the financial results of DGF based on audited financial statements for the financial
years ended 30 April are as follows:
Note
Investment income/(loss) (i)
Expenses
(ii)
Net income/(loss)
before taxation
Taxation
Net income/(loss)
after taxation
Accumulated losses
brought forward
Accumulated losses
carried forward
2003
RM'000
2002
RM'000
2001
RM'000
2000
RM'000
19,410
(3,965)
20,612
45,775
(19,700)
(4,814)
(4,182)
(4,699)
(5,844)
(3,661)
────── ────── ────── ────── ──────
14,596
(8,147)
15,913
(1,686)
(871)
412
────── ────── ──────
12,910
(9,018)
16,325
39,931
(23,361)
(747)
364
────── ──────
39,184
(22,997)
(39,533) (30,515) (46,840) (86,024) (63,027)
────── ────── ────── ────── ──────
(26,623) (39,533) (30,515) (46,840) (86,024)
══════ ══════ ══════ ══════ ══════
Net income/(loss) after taxation
is made up as follows:*
Realised amount
Unrealised amount
1999
RM'000
12,909
1
──────
12,910
══════
(9,018)
16,345
38,816
(20)
368
────── ────── ──────
(9,018)
16,325
39,184
══════ ══════ ══════
* No information was made available by the Company for financial year 1999.
145
6
(continued)
(b)
Statements of income and expenditure (continued)
2003
RM'000
2002
RM'000
2001
RM'000
2000
RM'000
1999
RM'000
Gross dividends
9,811
Interest income
1,231
Net profit/(loss) on
sale/redemption
of investments
7,454
Accretion of discount
net amortisation
of premium
914
──────
19,410
══════
4,267
1,918
4,236
1,418
4,194
1,007
2,557
6,313
(9,899)
14,767
39,916
(30,012)
(251)
──────
(3,965)
══════
191
──────
20,612
══════
658
──────
45,775
══════
1,442
──────
(19,700)
══════
3,739
247
9
4
183
──────
4,182
══════
4,266
277
8
4
144
──────
4,699
══════
5,375
316
7
4
142
──────
5,844
══════
3,300
189
7
5
160
──────
3,661
══════
Note:
(i) Investment income/
(loss) consists of:
(ii) Expenses consist of:
Management fees
Trustee fees
Audit fee
Tax agent’s fee
Other expenses
4,373
283
9
4
145
──────
4,814
══════
146
6
(continued)
(c)
Statements of assets and liabilities
The extract of the statements of assets and liabilities of DGF based on audited financial
statements as at 30 April are as follows:
2003
RM'000
2002
RM'000
2001
RM'000
2000
RM'000
1999
RM'000
235,595 294,385 151,503
8,084
13,924
30,227
21,806
52,129
13,888
10,508
6,478
────── ────── ──────
287,794 326,699 224,034
────── ────── ──────
342,726
4,700
28,668
1,462
──────
377,556
──────
259,168
19,101
9,482
10,789
──────
298,540
──────
10,471
11,045
7,638
────── ────── ──────
277,323 315,654 216,396
══════ ══════ ══════
5,351
──────
372,205
══════
7,636
──────
290,904
══════
502,759 458,707 431,389
══════ ══════ ══════
462,210
══════
531,874
══════
Net asset value per unit (RM) 0.5516
0.6882 0.5017*
══════ ══════ ══════
0.81
══════
0.55
══════
ASSETS
Quoted investments
Unquoted investments
Liquid assets
Other assets
Total assets
LIABILITIES
Creditors and accruals
Unitholders’ fund
Units in circulation (‘000)
147
7
SBB Emerging Companies Growth Fund (formerly known as BHLB Pacific Emerging Companies
Growth Fund)
(a)
The financial statements of ECO for the financial years ended 30 June 2003, 30 June 2002, 30
June 2001, 30 June 2000 and 30 June 1999 were audited and reported on by us without any
qualification.
(b)
The extract of the financial results of ECO based on audited financial statements for the financial
years ended 30 June are as follows:
Note
Expenses
(ii)
Net (loss)/income
before taxation
Taxation
Net (loss)/income
after taxation
Undistributed net income/
(accumulated losses)
brought forward
carried forward
2003
RM’000
2002
RM’000
2001
RM’000
2000
RM’000
1999
RM’000
5,903
(6,723)
─────
34,737
(7,305)
─────
24,903
(6,536)
─────
52,814
(6,912)
─────
(5,488)
(4,088)
─────
(820)
(2,386)
─────
27,432
(1,196)
─────
18,367
1,353
─────
45,902
(1,774)
─────
(9,576)
109
─────
(3,206)
(5,035)
─────
(8,241)
26,236
1,485
─────
27,721
19,720
6,350
─────
26,070
44,128
655
─────
44,783
(9,467)
─────
(9,467)
77,018
─────
49,297
─────
23,227
─────
(21,556)
─────
(12,089)
─────
68,777
═════
77,018
═════
49,297
═════
23,227
═════
(21,556)
═════
Net (loss)/income after taxation
is made up as follows: *
Realised amount
Unrealised amount
(3,249) 26,230
19,552
43,886
43
6
168
242
────── ────── ────── ──────
(3,206) 26,236
19,720
44,128
══════ ══════ ══════ ══════
148
7
Growth Fund) (continued)
(b)
2003
RM’000
2002
RM’000
2001
RM’000
2000
RM’000
1999
RM’000
6,512
6,955
7,321
5,024
6,478
1,972
4,367
7,364
18,779
11,920
44,123
(17,946)
2,491
─────
34,737
═════
638
─────
24,903
═════
241
─────
52,814
═════
727
─────
(5,488)
═════
6,854
228
8
4
211
─────
7,305
═════
6,068
215
8
3
242
─────
6,536
═════
6,634
108
8
3
159
─────
6,912
═════
3,916
56
8
4
104
─────
4,088
═════
Note:
(i)
Investment income/(loss)
consists of:
Gross dividends
11,680
Interest income
3,280
Net (loss)/profit on sale/redemption
of investments
(8,915)
Amortisation of premium net
accretion of discount
(142)
─────
5,903
═════
(ii)
Expenses consist of:
Management fees
Trustee/custodian fees
Audit fee
Tax agent’s fee
Other expenses
6,318
250
10
4
141
─────
6,723
═════
149
7
Growth Fund) (continued)
(c)
The extract of the statements of assets and liabilities of ECO based on its audited financial
statements as at 30 June are as follows:
2003
RM’000
2002
RM’000
2001
RM’000
2000
RM’000
1999
RM’000
322,631 391,814 239,692 386,098
44,998
46,828
35,774
13,663
50,595
39,761 113,551
44,221
16,136
9,034
11,226
10,919
────── ────── ────── ──────
434,360 487,437 400,243 454,901
────── ────── ────── ──────
349,888
20,665
19,282
14,445
──────
404,280
──────
10,890
8,311
4,539
4,765
────── ────── ────── ──────
423,470 479,126 395,704 450,136
══════ ══════ ══════ ══════
14,411
──────
389,869
══════
Units in circulation ('000)
632,301 676,558 611,838 445,774
══════ ══════ ══════ ══════
383,093
══════
Net asset value per unit (RM)
0.6697
0.7082
0.6468
1.009*
══════ ══════ ══════ ══════
1.02
══════
ASSETS
Quoted investments
Liquid assets
Other assets
Total assets
LIABILITIES
Unitholders’ fund
150
8
SBB Savings Fund (formerly known as BHLB Pacific Savings Fund)
(a)
The financial statements of SF for the financial years ended 31 August 2003, 31 August 2002, 31
August 2001, 31 August 2000 and 31 August 1999 were audited and reported on by us without
any qualification.
(b)
The extract of the financial results of SF based on audited financial statements for the financial
years ended 31 August are as follows:
Note
Investment income
Expenses
Net income before
taxation
Taxation
Net income after taxation
Undistributed net income
brought forward
Net distribution for the
financial year
carried forward
(i)
(ii)
2003
RM'000
2002
RM'000
2001
RM'000
2000
RM'000
1999
RM'000
28,582
(5,606)
─────
30,425
(4,742)
─────
6,645
(3,588)
─────
33,953
(3,637)
─────
17,638
(1,993)
─────
22,976
157
─────
23,133
26,581
─────
49,714
25,683
(2,100)
─────
23,583
11,648
─────
35,231
3,057
(645)
─────
2,412
10,735
─────
13,147
30,316
(360)
─────
29,956
5,481
─────
35,437
15,645
486
─────
16,131
3,452
─────
19,583
104,685
69,454
56,307
20,870
4,165
(47,570)
─────
─────
─────
─────
(2,878)
─────
106,829
═════
104,685
═════
69,454
═════
56,307
═════
20,870
═════
Realised amount
Unrealised amount
21,488
23,209
(777) 28,948
1,645
374
3,189
1,008
────── ────── ────── ──────
23,133
23,583
2,412
29,956
══════ ══════ ══════ ══════
151
8
SBB Savings Fund (formerly known as BHLB Pacific Savings Fund) (continued)
(b)
2003
RM'000
2002
RM'000
2001
RM'000
2000
RM'000
1999
RM'000
Gross dividends
4,920
Interest income
9,116
Net profit/(loss) on sale/
redemption of
investments
12,216
Accretion of discount net
amortisation of premium 2,330
─────
28,582
═════
7,314
5,730
2,118
4,962
2,011
2,694
1,482
2,618
13,455
(4,442)
28,020
13,298
Note:
(i)
(ii)
Investment income
consists of:
3,926
─────
30,425
═════
4,007
─────
6,645
═════
1,228
─────
33,953
═════
240
─────
17,638
═════
4,562
80
10
4
86
─────
4,742
═════
3,431
73
8
4
72
─────
3,588
═════
3,430
73
8
4
122
─────
3,637
═════
1,868
42
8
4
71
─────
1,993
═════
Management fees
Audit fee
Tax agent’s fee
Other expenses
5,423
86
10
4
83
─────
5,606
═════
152
8
SBB Savings Fund (formerly known as BHLB Pacific Savings Fund) (continued)
(c)
The extract of the statements of assets and liabilities of SF based on audited financial statements
as at 31 August are as follows:
2003
RM'000
2002
RM'000
2001
RM'000
2000
RM'000
1999
RM'000
211,703
178,577
27,590
5,090
─────
422,960
─────
167,934
123,711
46,766
7,510
─────
345,921
─────
125,263
104,497
35,546
5,114
─────
270,420
─────
133,748
74,398
30,704
2,176
─────
241,026
─────
140,572
13,207
30,446
10,951
─────
195,176
─────
10,293
─────
412,667
═════
5,445
─────
340,476
═════
14,863
─────
255,557
═════
5,686
─────
235,340
═════
4,054
─────
191,122
═════
529,948
═════
417,484
═════
330,969
═════
250,059
═════
216,552
═════
0.7787
═════
0.8156
═════
0.7722
═════
0.9412*
═════
0.88
═════
ASSETS
Quoted investments
Liquid assets
Other assets
Total assets
LIABILITIES
Unitholders’ fund
153
9
SBB High Growth Fund (formerly known as BHLB Pacific High Growth Fund)
(a)
The financial statements of HGF for the financial years ended 31 October 2003, 31 October
2002, 31 October 2001, 31 October 2000 and 31 October 1999 were audited and reported on by
us without any qualification.
(b)
The extract of the financial results of HGF based on audited financial statements for the financial
years ended 31 October are as follows:
Note
Investment income
Expenses
(i)
(ii)
Net income/(loss) before
taxation
Taxation
Net (loss)/income after
taxation
brought forward
carried forward
2003
RM'000
2002
RM’000
2001
RM’000
2000
RM’000
1999
RM’000
10,423
(9,618)
─────
44,522
(10,920)
─────
6,410
(9,913)
─────
61,071
(10,438)
─────
34,747
(4,661)
─────
805
(2,036)
─────
33,602
(4,333)
─────
(3,503)
(1,515)
─────
50,633
(1,391)
─────
30,086
(1,248)
─────
(1,231)
(18,263)
─────
(19,494)
29,269
(8,799)
─────
20,470
(5,018)
2,480
─────
(2,538)
49,242
27,513
─────
76,755
28,838
5,766
─────
34,604
121,314
─────
100,844
─────
103,382
─────
26,627
─────
(7,977)
─────
101,820
═════
121,314
═════
100,844
═════
103,382
═════
26,627
═════
Net (loss)/income after taxation
Realised amount
Unrealised amount
(1,376) 29,229
(6,768) 48,527
145
40
1,750
715
────── ────── ────── ──────
(1,231) 29,269
(5,018) 49,242
══════ ══════ ══════ ══════
154
9
(continued)
(b)
Note:
(i)
2003
RM'000
2002
RM’000
2001
RM’000
2000
RM’000
1999
RM’000
14,617
4,654
21,240
5,590
8,880
9,819
8,007
3,016
3,561
3,177
(8,987)
15,812
(14,837)
49,178
27,499
139
─────
10,423
═════
1,880
─────
44,522
═════
2,548
─────
6,410
═════
870
─────
61,071
═════
510
─────
34,747
═════
9,409
113
9
3
84
─────
9,618
═════
10,664
121
8
3
124
─────
10,920
═════
9,689
115
8
3
98
─────
9,913
═════
10,185
118
8
3
124
─────
10,438
═════
4,515
60
7
4
75
─────
4,661
═════
Investment income
consists of:
Gross dividends
Interest income
(Loss)/profit on sale/
redemption of
investments
Management fees
Audit fee
Tax agent’s fee
Other expenses
155
9
(continued)
(c)
The extract of the statements of assets and liabilities of HGF based on audited financial
statements as at 31 October are as follows:
2003
RM'000
2002
RM’000
2001
RM’000
2000
RM’000
1999
RM’000
562,597
79,118
23,193
13,490
─────
678,398
─────
535,530
39,540
62,464
12,009
─────
649,543
─────
391,848
162,913
77,648
7,443
─────
639,852
─────
423,033
29,585
233,342
10,747
─────
696,707
─────
384,723
12,140
37,957
17,585
─────
452,405
─────
25,129
─────
653,269
═════
13,149
─────
636,394
═════
13,874
─────
625,978
═════
8,896
─────
687,811
═════
7,734
─────
444,671
═════
726,877
═════
854,538
═════
926,313
═════
862,951
═════
547,846
═════
0.8987
═════
0.7447
═════
0.6758
═════
0.7971*
═════
0.82
═════
ASSETS
Quoted investments
Liquid assets
Other assets
Total assets
LIABILITIES
Unitholders’ fund
156
10 SBB Dana Al-Ihsan (formerly known as BHLB Pacific Dana Al-Ihsan)
(a)
The financial statements of DALI for the financial years ended 31 May 2003, 31 May 2002, 31
May 2001 and 31 May 2000 and financial period from 7 May 1998 (date of commencement) to
31 May 1999, were audited and reported on by us without any qualification.
(b)
The extract of the financial results of DALI based on audited financial statements for the
financial years/period ended 31 May are as follows:
Note
Expenses
(ii)
Net income/(loss)
before taxation
Taxation
Net income/(loss)
after taxation
brought forward
carried forward
2003
RM’000
2002
RM’000
2001
RM’000
2000
RM’000
1999
RM’000
44,486
(11,503)
─────
25,422
(10,693)
─────
(251)
(7,229)
─────
16,279
(3,061)
─────
2,769
(372)
─────
32,983
(1,613)
─────
14,729
(1,466)
─────
(7,480)
(738)
─────
13,218
(233)
─────
2,397
(61)
─────
31,370
8,844
─────
40,214
13,263
14,211
─────
27,474
(8,218)
39,932
─────
31,714
12,985
20,142
─────
33,127
2,336
1,867
─────
4,203
96,518
─────
69,044
─────
37,330
─────
4,203
─────
─────
136,732
═════
96,518
═════
69,044
═════
37,330
═════
4,203
═════
30,192
1,177
─────
31,369
═════
13,174
89
─────
13,263
═════
(8,572)
354
─────
(8,218)
═════
12,950
35
─────
12,985
═════
Net income/(loss) after taxation
Realised amount
Unrealised amount
157
10 SBB Dana Al-Ihsan (formerly known as BHLB Pacific Dana Al-Ihsan) (continued)
(b)
Note:
2003
RM’000
2002
RM’000
2001
RM’000
2000
RM’000
1999
RM’000
Gross dividends
9,580
Income from investments 12,716
Profit/(loss) on sale/
redemption of
investments
20,992
amortisation of premium 1,198
─────
44,486
═════
7,747
12,336
4,126
7,646
2,203
760
268
497
4,074
(12,405)
13,217
2,003
1,265
─────
25,422
═════
382
─────
(251)
═════
99
─────
16,279
═════
1
─────
2,769
═════
10,039
535
8
4
107
─────
10,693
═════
6,743
360
8
3
115
─────
7,229
═════
2,850
152
6
3
50
─────
3,061
═════
327
17
6
2
20
─────
372
═════
(i) Investment income/(loss)
consists of:
Management fees
Trustee fees
Audit fee
Tax agent’s fee
Other expenses
10,822
577
9
3
92
─────
11,503
═════
158
10 SBB Dana Al-Ihsan (formerly known as BHLB Pacific Dana Al-Ihsan) (continued)
(c)
The extract of the statements of assets and liabilities of DALI based on audited financial
statements as at 31 May are as follows:
2003
RM’000
2002
RM’000
2001
RM’000
2000
RM’000
1999
RM’000
453,539
251,329
56,359
26,745
─────
787,972
─────
465,010
168,048
103,466
13,538
─────
750,062
─────
175,691
92,359
257,709
9,158
─────
534,917
─────
277,861
9,809
34,218
29,761
─────
351,649
─────
50,977
4,470
7,733
3,865
─────
67,045
─────
7,161
─────
780,811
═════
7,632
─────
742,430
═════
9,124
─────
525,793
═════
5,202
─────
346,447
═════
2,732
─────
64,313
═════
1,091,222
═════
880,019
═════
723,910
═════
275,104
═════
53,637
═════
0.7155
═════
0.8437
═════
0.7264
═════
1.259*
═════
1.21
═════
ASSETS
Quoted investments
Liquid assets
Other assets
Total assets
LIABILITIES
Unitholders’ fund
159
11 SBB Dana Al-Mizan (formerly known as BHLB Pacific Dana Al-Mizan)
(a)
The financial statements of MIZAN for the financial years ended 30 September 2003 and 30
September 2002 and the financial period from 8 March 2001 (date of commencement) to 30
September 2001 were audited and reported on by us without any qualification.
(b)
The extract of the financial results of MIZAN based on audited financial statements for the
financial years/period ended 30 September are as follows:
Note
Investment income
Expenses
(i)
(ii)
Net income before taxation
Taxation
Undistributed net income brought forward
Undistributed net income carried forward
2003
RM’000
2002
RM’000
2001
RM’000
26,868
(4,216)
─────
22,652
(242)
─────
22,410
3,235
─────
25,645
15,898
─────
41,543
═════
9,314
(2,223)
─────
7,091
(185)
─────
6,906
7,422
─────
14,328
1,570
─────
15,898
═════
1,853
(443)
─────
1,410
(25)
─────
1,385
185
─────
1,570
─────
1,570
═════
20,059
2,351
─────
22,410
═════
7,155
(249)
─────
6,906
═════
1,359
26
─────
1,385
═════
Net income after taxation is made up as follows:
Realised amount
Unrealised amount
160
11 SBB Dana Al-Mizan (formerly known as BHLB Pacific Dana Al-Mizan) (continued)
(b)
Note:
2003
RM’000
2002
RM’000
2001
RM’000
2,658
6,814
14,680
1,136
3,930
4,418
143
632
1,052
2,716
─────
26,868
═════
(170)
─────
9,314
═════
26
─────
1,853
═════
3,897
260
7
5
47
─────
4,216
═════
2,036
136
5
4
42
─────
2,223
═════
394
26
5
3
15
─────
443
═════
(i) Investment income consists of:
Gross dividends
Income from investments
Profit on sale/redemption of investments
(ii)
Management fees
Trustee fees
Audit fee
Tax agent’s fee
Other expenses
161
11 SBB Dana Al-Mizan (formerly known as BHLB Pacific Dana Al-Mizan) (continued)
(c)
The extract of the statements of assets and liabilities of MIZAN based on audited financial
statements as at 30 September are as follows:
2003
RM’000
2002
RM’000
2001
RM’000
152,889
113,868
26,317
4,008
─────
297,082
─────
79,535
87,219
42,268
4,661
─────
213,683
─────
28,748
28,603
7,540
4,574
─────
69,465
─────
8,673
─────
288,409
═════
1,837
─────
211,846
═════
1,647
─────
67,818
═════
587,185
═════
451,239
═════
141,173
═════
0.4912
═════
0.4695
═════
0.4804
═════
ASSETS
Quoted investments
Liquid assets
Other assets
Total assets
LIABILITIES
Unitholders’ fund
162
12 SBB HGF Sequel Fund (formerly known as BHLB Pacific HGF Sequel Fund)
(a)
The financial statements of SEQUEL for the financial years ended 30 September 2003 and 30
September 2002 and the financial period from 8 March 2001 (date of commencement) to 30
September 2001 were audited and reported on by us without any qualification.
(b)
The extract of the financial results of SEQUEL based on audited financial statements for the
financial years/period ended 30 September are as follows:
Note
Investment income
Expenses
(i)
(ii)
Net income before taxation
Taxation
Undistributed net income brought forward
Undistributed net income carried forward
2003
RM’000
2002
RM’000
2001
RM’000
12,048
(3,039)
─────
9,009
(623)
─────
8,386
6,726
─────
15,112
8,266
─────
23,378
═════
4,900
(1,441)
─────
3,459
(491)
─────
2,968
4,145
─────
7,113
1,153
─────
8,266
═════
1,308
(278)
─────
1,030
(45)
─────
985
168
─────
1,153
─────
1,153
═════
8,424
(38)
─────
8,386
═════
2,966
2
─────
2,968
═════
985
─────
985
═════
Net income after taxation is made up as follows:
Realised amount
Unrealised amount
163
(continued)
(b)
Note:
2003
RM’000
2002
RM’000
2001
RM’000
3,668
2,796
5,614
2,464
883
1,645
192
259
857
(30)
─────
12,048
═════
(92)
─────
4,900
═════
─────
1,308
═════
2,799
187
6
5
42
─────
3,039
═════
1,307
87
5
4
38
─────
1,441
═════
236
20
5
3
14
─────
278
═════
(i) Investment income consists of:
Gross dividends
Interest income
Profit on sale/redemption of investments
Amortisation of premium net
accretion of discount
(ii)
Management fees
Trustee fees
Audit fee
Tax agent’s fee
Other expenses
164
(continued)
(c)
The extract of the statements of assets and liabilities of SEQUEL based on audited financial
statements as at 30 September are as follows:
2003
RM’000
2002
RM’000
2001
RM’000
177,935
39,854
26,723
3,195
─────
247,707
═════
87,247
5,518
32,143
4,836
─────
129,744
═════
28,302
14,880
2,844
─────
46,026
═════
4,302
─────
243,405
═════
1,248
─────
128,496
═════
390
─────
45,636
═════
269,558
═════
141,531
═════
47,655
═════
0.9030
═════
0.9079
═════
0.9577
═════
ASSETS
Quoted investments
Liquid assets
Other assets
Total assets
LIABILITIES
Unitholders’ fund
165
13
14
15
16
17
SBB Dana Al-Ihsan 2 (formerly known as BHLB Pacific Dana Al-Ihsan 2)
SBB Dana Al-Azam (formerly known as BHLB Pacific Dana Al-Azam)
SBB Dana Al-Hikmah (formerly known as BHLB Pacific Dana Al-Hikmah)
SBB Crystal Equity Fund
SBB Equity Income Fund
As at the date of this report, no audited financial statements for the funds No.13 to No.17 were available
for inclusion in this report.
18 Summary of significant accounting policies of the funds
The following accounting policies have been used in dealing with items which are considered material in
relation to the financial statements of the Funds:
A
Accounting Convention
The financial statements of the Funds are prepared under the historical cost convention in
accordance with applicable approved accounting standards in Malaysia modified by the
Securities Commission’s Guidelines on Unit Trust Funds.
B
Investments
Quoted investments in Malaysia are valued at the last done market price quoted on the Kuala
Lumpur Stock Exchange (“KLSE”) at the date of statement of assets and liabilities, in
accordance with the Deed. For DGF and ECO only, quoted investments outside Malaysia are
valued at the latest available market price quoted on the Stock Exchange which they are listed on.
The carrying value of the unquoted fixed income securities are carried at cost and adjusted for
amortisation of any premium or accretion of discount over their par values at the time of
acquisition. The carrying value of the unquoted fixed income securities is revalued to reflect its
fair value (current value) using the net present value method.
Surplus or deficit on revaluation is transferred to the Investment fluctuation reserve and is not
distributable.
C
Income Recognition
Dividend income is recognised on the ex-dividend date.
Realised gain or loss on sale of quoted equities is arrived at after accounting for cost of
investments, determined on weighted average cost method.
Realised gain or loss on sale/redemption of unquoted fixed income securities is measured as the
difference between the net disposal proceeds and the carrying value of the investment.
Interest income is recognised on the accrual basis. However, the DALI, MIZAN, DALI2,
AZAM and HIKMAH, income arising from deposits with financial institutions and unquoted
fixed income securities is recognised on the accrual basis.
Income arising from unquoted fixed income securities that are issued at a significant discount or
premium is accreted or amortised over the life of such securities.
166
18 Summary of significant accounting policies of the funds (continued)
D
Distribution Equalisation
Distribution equalisation is accounted for at the date of creation and cancellation of units. It
represents the average amount of distributable income included in the creation and cancellation
prices of units.
E
Currency Translation (DGF and ECO only)
Transactions in foreign currencies during the financial year are converted to Ringgit Malaysia at
rates of exchange ruling at transaction dates. Assets and liabilities denominated in foreign
currencies at the date of the statement of assets and liabilities are translated into Ringgit Malaysia
at rates of exchange approximating to those ruling on that date.
F
Cash
For the purpose of cash flow statement, cash includes bank balances and demand deposits which
are readily convertible to cash with an insignificant risk of changes in value.
G
Fair value of Financial Instruments
Financial instruments comprise financial assets and financial liabilities. Fair value is the amount
at which a financial asset could be exchanged or a financial liability settled, between
knowledgeable and willing parties in an arm’s length transaction. The information presented
herein represents the estimates of fair values as at the date of statement of assets and liabilities.
Where available, quoted and observable market prices are used as the measure of fair values.
Where such quoted and observable market prices are not available, fair values are estimated
based on a range of methodologies and assumptions regarding risk characteristics of various
financial instruments, net present value and other factors. Changes in the uncertainties and
assumptions could materially affect these estimates and the resulting fair value estimates.
In addition, fair value information for non-financial and financial instruments that are excluded
from the scope of Malaysian Accounting Standards Board (‘MASB’) 24 which requires the fair
value information to be disclosed are excluded.
A range of methodologies and assumptions had been used in deriving the fair values of the
Fund’s financial instruments at the date of statement of assets and liabilities. The total fair value
of each financial instrument is not materially different from the total carrying value.
The fair values are based on the following methodologies and assumptions:
(i) Cash, deposits and placements with financial institutions (including Syariah based)
For cash, deposits and placements with financial institutions, the carrying value is a
reasonable estimate of fair value.
167
G
Fair value of Financial Instruments (continued)
(ii)
Quoted securities
The estimated fair value is based on market price. However, if a valuation based on the
market price does not represent the fair value of the securities, for example during
abnormal market conditions or no market price is 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, then the securities are valued as determined in
good faith by the Manager, based on the methods or bases approved by the Trustee after
appropriate technical consultation.
(iii)
Unquoted fixed income securities
The estimated fair value is based on the net present value method by reference to market
indicative yields.
(iv)
Other short term financial instruments
Other short term financial instruments comprise dividend receivable, interest receivable,
income receivable, sundry receivables, payables and accruals for audit fees and tax
agent’s fees.
The carrying value of these assets and liabilities are assumed to approximate their fair
value due to short tenure of less than one year.
H
Summary of financial risk management objectives and policies
The Funds’ activities are exposed to a variety of financial risk as below :(i)
Market risk
Any purchase of securities will involve an element of risk. The value of
securities may fluctuate according to the activities of individual companies,
sector and overall political and economic conditions. Such fluctuation may cause
the Fund's net asset value (“NAV”) and prices of units to fall as well as rise, and
income produced by the Fund may also fluctuate.
The market risk is managed through portfolio diversification and asset allocation
whereby the equity exposure will be reduced in the event of anticipated market
weakness.
(ii)
Single issuer risk
Any major price fluctuation of a particular security invested by the Fund may
affect the Fund's NAV and thus the prices of units.
The single issuer risk is managed by adhering to the investment limits specified
in the SC Guidelines.
168
(iii)
Interest rate risk (DGF, ECO, SF, HGF, SEQUEL, CRS and EIF only)
Prices of bonds move in the opposite direction with interest rates. When the interest
rates rise, prices of bonds fall and vice versa.
The interest rate risk is managed by varying the duration of fixed income securities
selected which is dependent on the anticipation of the interest rates trends. As such, the
interest rates trends will be monitored closely.
(iii)
Interest rate risk (DALI, MIZAN, DALI2, AZAM and HIKMAH)
The risk refers to the effect of interest rate changes on the market value of a bond
portfolio. In the event of rising interest rates, prices of fixed income securities will
decrease and vice versa. Meanwhile, fixed income securities with longer maturity and
lower coupon rate are more sensitive to interest rate changes. This risk will be mitigated
via the management of the duration structure of the fixed income portfolio.
The interest rate risk is a general economic indicator that will have an impact to the
management of fund regardless of whether it is a Syariah based fund or otherwise. It
does not in any way suggest that this fund will invest in fixed income securities, which
are not approved by Syariah. All the investment carried out for the Fund are in
accordance with the requirement of Syariah.
(iv)
Credit/Default risk
Credit/Default risk is the risk that an issuer or counterparty will be unable or unwilling to
meet a commitment that it has entered to with the Fund.
The Fund’s credit risk concentration is spread between interest rate and equity securities.
At any time, less than 10% at the NAV of the Fund are with any single issuer or
counterparty. All transactions in quoted investments are settled/paid upon delivery using
approved brokers.
(v)
Liquidity risk
Liquidity is the ability to convert an investment portfolio to cash without suffering any
significant loss in value. The Fund’s quoted investment is considered to be readily
realisable as they are listed on the KLSE.
The Fund aims to reduce the liquidity risk by investing mainly in companies with good
liquidity and maintaining a prudent level of liquid assets.
(vi)
Currency fluctuation risk (DGF and ECO only)
A percentage of the value of the Fund invested in overseas are bound by currency
fluctuation risks. Fluctuation in foreign exchange rates will have impact on the income of
the fund. The currency fluctuation risk is managed by adhering to the prescribed
percentage of investment allowed in foreign securities.
169
H
Summary of financial risk management objectives and policies (continued)
(vii)
Foreign market risk (DGF and ECO only)
The primary macro level risks when investing in foreign markets are political, currency
(conversion, translation and exchange control), and potentially volatile fiscal and
monetary policy. Other area of macro risks that are significant when investing in
emerging markets are the frequency of related party activities, local customary practices,
lack of information technology, lack of market and regulatory infrastructure, and
transparency of accounting (including non-conformity to international accounting
standards) and management practices.
As for primary macro level, there are risks in market liquidity (especially for secondary
fixed income markets, the absence of market makers to support markets and counteract
extreme price movements, and illiquid small capitalisation equity issues), lack of
derivative market for hedging of portfolios, and availability of investment research
materials.
For the Fund, foreign market risk is managed through portfolio diversification among
markets and investing in emerging companies listed on established exchanges, which are
well researched and have ready liquidity.
19 No audited financial statements of DGF, ECO, SF, HGF, DALI, MIZAN and SEQUEL have been made
up in respect of any period subsequent to 30 April 2003, 30 June 2003, 31 August 2003, 31 October
2003, 31 May 2003, 30 September 2003 and 30 September 2003 respectively.
Yours faithfully,
PRICEWATERHOUSECOOPERS
(No. AF: 1146)
Chartered Accountants
DATO’ AHMAD JOHAN BIN MOHAMMAD RASLAN
(No. 1867/09/04 (J))
Partner of the firm
170
January 16, 2004
SBB Mutual Berhad
50, 52 & 54 Jalan SS21/39
Damansara Utama
47400 Petaling Jaya
Selangor Darul Ehsan.
Dear Sirs,
1.
INTRODUCTION
The following report has been prepared for inclusion in the Master Prospectus to be issued by SBB
Mutual Berhad (formerly known as BHLB Pacific Trust Management Berhad) (the management
company) in connection with the offer for sale of units in SBB Bond Fund, SBB Index-Linked Fund,
SBB Premium Capital Fund, SBB Retirement Balanced Fund and SBB Composite Index Fund (‘the
Funds’).
2.
INFORMATION ON THE FUNDS
All the above Funds are currently governed under the provisions of the Fourth Supplemental Deed (to the
Master Deed dated November 23, 2001) as may be amended from time to time.
3.
DETAILS OF INCOME DISTRIBUTION
SBB Bond Fund
The details of income distribution for the financial period July 28, 1999 (date of commencement) to July
31, 2000, and the financial years ended July 31, 2001 to 2003 are as follows:
Date of
Distribution
31.7.2000
30.7.2001
29.7.2002
31.7.2003
Gross
Distribution
Per Unit
Amount of
Distribution
(Gross)
RM’000
Buying
Price
Per Unit
(ex-date)
RM
Selling
Price
Per Unit
(ex-date)
RM
sen
4.00
4.50
6.00
7.00
234
411
1,772
17,253
1.0040
1.0403
1.1095
1.2401
1.0040
1.0403
1.1095
1.2648
There was no distribution made since its commencement.
171
Net Asset
Value Per
Unit Before
Distribution
RM
1.0432
1.0850
1.1690
1.3100
Net Asset
Value Per
Unit After
Distribution
RM
1.0040
1.0403
1.1095
1.2401
SBB Premium Capital Fund
The details of income distribution for the financial years ended June 30, 1999 to 2003 are as follows:
Date of
Distribution
30.6.1999
30.6.2000
Gross
Distribution
Per Unit
Amount of
Distribution
(Gross)
sen
RM’000
5.00
9.00
14,998
27,377
Buying
Price
Per Unit
(ex-date)
RM
0.74
0.74
Selling
Price
Per Unit
(ex-date)
RM
0.77
0.79
Net Asset
Value Per
Unit Before
Distribution
RM
0.79
0.83
Net Asset
Value Per
Unit After
Distribution
RM
0.74
0.74
There was no distribution made during the financial years ended June 30, 2001 to 2003.
SBB Retirement Balanced Fund
The details of income distribution for the financial years ended March 31, 1999 to 2003 are as follows:
Date of
Distribution
31.3.1999
31.3.2000
Gross
Amount of
Distribution Distribution
Per Unit
(Gross)
sen
RM’000
Buying
Price
Per Unit
(ex-date)
RM
4.50
8.00
2,018
3,595
0.76
1.27
Selling
Price
Per Unit
(ex-date)
RM
Net Asset
Value Per
Unit Before
Distribution
RM
Net Asset
Value Per
Unit After
Distribution
RM
0.81
1.34
0.77
1.28
0.73
0.80
There was no distribution made during the financial years ended March 31, 2001 to 2003.
SBB Composite Index Fund
There was no distribution made since its commencement.
172
4.
FINANCIAL STATEMENTS OF THE FUNDS
The financial statements of SBB Bond Fund for the financial period July 28, 1999 to July 31, 2000, and
financial years ended July 31, 2001 to 2002 were audited and reported on by another firm of auditors
without any qualification. The financial statements for the financial year ended July 31, 2003 were
audited and reported on by us without any qualification.
The financial statements of SBB Index-Linked Fund for the financial period May 25, 2000 to September
30, 2001, and financial year ended September 30, 2002 were audited on by another firm of auditors
without any qualification. The financial statements for the year ended September 30, 2003 were audited
and reported on by us without any qualification.
The financial statements of SBB Premium Capital Fund for the financial years ended June 30, 1999 to
2002 were audited by another firm of auditors without any qualification. The financial statements for the
financial year ended June 30, 2003 were audited and reported on by us without any qualification.
The financial statements of SBB Retirement Balanced Fund for the financial years ended March 31, 1999
to 2003 were audited by us and reported on without any qualification.
The financial statements of SBB Composite Index Fund for the financial period August 23, 1999 to
September 30, 2000 and financial years ended September 30, 2001 to 2003 were audited by us and
reported on without any qualification.
173
SBB Bond Fund
(a)
Condensed Statements of Income and Expenditure
The condensed financial results of the Fund based on the audited financial statements for the
financial period July 28, 1999 (date of commencement) to July 31, 2000 and financial years
ended July 31, 2001 to 2003 are as follows:
Year ended
July 31,
2003
RM’000
INVESTMENT INCOME
Net realised gain on sale /
redemption of investments
Interest income
EXPENSES
Management fee
Trustee fee
Audit fee
Administrative expenses
NET INCOME BEFORE
TAXATION
TAXATION
NET INCOME AFTER
TAXATION
DISTRIBUTION
EQUALISATION
UNDISTRIBUTED
INCOME BROUGHT
FORWARD
NET INCOME FOR
DISTRIBUTION
DISTRIBUTION
UNDISTRIBUTED
INCOME CARRIED
FORWARD
Year ended Year ended Period ended
July 31,
July 31,
July 31,
2002
2001
2000
RM’000
RM’000
RM’000
2,132
683
160
52
5,902
1,350
313
115
2,354
529
139
121
10,388
2,562
612
288
1,258
106
7
21
277
31
8
23
66
30
8
18
9
30
8
12
1,392
339
122
59
8,996
2,223
490
229
-
-
8,996
2,223
486
225
27,124
1,112
241
82
1,960
394
77
-
38,080
3,729
804
307
(17,253)
(1,769)
(410)
(230)
20,827
1,960
394
77
174
(4)
(4)
(b)
Condensed Statements of Assets and Liabilities
The condensed statements of assets and liabilities of the Fund based on the audited financial
statements as of July 31, 2000 to 2003 are as follows:
2003
RM’000
2002
RM’000
2001
RM’000
2000
RM’000
302,544
30,195
7,938
4,125
-
-
-
182
9,691
2,160
1,590
1,586
312,235
32,355
9,528
5,893
8,010
2,436
1,967
1,822
580
157
438
146
5
235
32
3
12,413
2,559
589
270
324,648
34,914
10,117
6,163
LIABILITIES
Amount due to Manager
Amount due to Trustee
Accrued management fee
Other payables
Taxation
Distribution payable
21
247
17
17,253
3
27
15
2
1,769
72
30
66
19
8
410
30
9
15
4
230
TOTAL LIABILITIES
17,538
1,816
605
288
NET ASSET VALUE
307,110
33,098
9,512
5,875
UNITHOLDERS' FUND
307,110
33,098
9,512
5,875
NUMBER OF UNITS IN
CIRCULATION (‘000)
247,657
29,833
9,144
5,852
1.2401
1.1095
1.0403
1.0040
INVESTMENTS
Unquoted fixed income
securities
Quoted fixed income
securities
Deposits with licensed
commercial bank
OTHER ASSETS
Amount due from Manager
Other receivables
Bank balance
TOTAL ASSETS
NET ASSET VALUE PER
UNIT (EXDISTRIBUTION) (RM)
175
(a)
Condensed statements of income and expenditure
financial period May 25, 2000 (date of commencement) to September 30, 2001 and financial
years ended September 30, 2002 to 2003 are as follows:
Year ended
September 30,
2003
RM’000
Year ended
September 30,
2002
RM’000
Period ended
September 30,
2001
RM’000
2,689
2,053
1,152
(235)
196
222
210
(3,049)
35
444
2,650
2,485
(1,418)
860
69
7
30
829
66
8
35
674
54
8
31
966
938
767
NET INCOME / (LOSS)
BEFORE TAXATION
1,684
1,547
(2,185)
TAXATION
(448)
(388)
(218)
NET INCOME / (LOSS)
AFTER TAXATION
1,236
1,159
(2,403)
(1)
-
29
(1,215)
(2,374)
-
20
(1,215)
(2,374)
INVESTMENT INCOME
Dividend income
Net realised (loss)/gain on sale/
redemption of investments
Accretion of discount
Interest income
EXPENSES
Management fee
Trustee fee
Audit fee
DISTRIBUTION
EQUALISATION
ACCUMULATED LOSS
BROUGHT FORWARD
UNDISTRIBUTED INCOME
/ (ACCUMULATED LOSS)
CARRIED FORWARD
176
(b)
The condensed statements of assets and liabilities of the Fund based on audited financial
statements as of September 30, 2001 to 2003 are as follows:
2003
RM’000
INVESTMENTS
Quoted investments
KLCI Futures
Deposits with financial institutions
2002
RM’000
2001
RM’000
90,105
147
3,029
69,900
46
8,155
53,057
352
9,695
93,281
78,101
63,104
529
119
564
110
279
249
118
640
11
172
697
348
1,002
218
100
1,322
1,297
2,537
94,603
79,398
65,641
LIABILITIES
Other payables and accruals
Taxation
1,118
6
79
26
472
5
68
24
606
13
166
24
218
TOTAL LIABILITIES
1,701
703
421
NET ASSET VALUE
92,902
78,695
65,220
UNITHOLDERS' FUND
92,902
78,695
65,220
NUMBER OF UNITS IN
216,804
212,569
184,602
0.4285
0.3702
0.3534
OTHER ASSETS
Amount due from stockbroker
Amount due from futures broker
Other receivables
Tax recoverable
Bank balance
TOTAL ASSETS
NET ASSET VALUE PER UNIT
(RM)
177
SBB Premium Capital Fund
(a)
Condensed statements of income and expenditure
financial years ended June 30, 1999 to 2003 are as follows:
INVESTMENT
INCOME
Dividend income
Interest income
Net realised (loss)/gain on
sale of investments
Accretion of discount /
(amortisation of premium)
- net
2003
RM’000
2002
RM’000
2001
RM’000
2000
RM’000
1999
RM’000
6,807
1,547
5,507
2,428
3,614
3,040
2,681
1,973
3,533
4,449
(6,429)
2,439
(1,267)
37,965
16,562
87
143
142
-
(2)
1,925
10,372
5,474
42,762
24,686
4,601
86
9
23
3,798
55
11
122
3,269
52
11
129
3,867
56
8
129
2,360
46
8
140
4,719
3,986
3,461
4,060
2,554
NET (LOSS) / INCOME
BEFORE TAXATION
(2,794)
6,386
2,013
38,702
22,132
TAXATION
(1,273)
(1,311)
NET (LOSS) / INCOME
AFTER TAXATION
(4,067)
5,075
1,091
-
-
EXPENSES
Management fee
Trustee fee
Audit fee
DISTRIBUTION
-
(922)
(517)
2,419
38,185
24,551
(26,861)
(14,220)
ACCUMULATED LOSS
BROUGHT FORWARD
(22,269)
(27,344)
(28,435)
(39,759)
(50,090)
ACCUMULATED LOSS
CARRIED FORWARD
(26,336)
(22,269)
(27,344)
(28,435)
(39,759)
178
(b)
statements as of June 30, 1999 to 2003 are as follows:
2003
RM’000
2002
RM’000
268,778
229,218
143,220
162,692
203,278
-
-
5,056
2,913
9,271
43,582
93,051
51,784
80,290
32,420
312,360
322,269
200,060
245,895
244,969
4,649
286
3,444
5,451
20
177
4,274
164
158
393
3,310
82
6,430
825
2,386
89
6,532
153
1,191
359
13,850
4,615
3,943
9,730
8,235
326,210
326,884
204,003
255,625
253,204
LIABILITIES
Amount due to
stockbrokers
Other payables
Taxation
2,727
123
1,108
21
24
2,399
161
863
88
1,146
819
252
28,985
191
16,660
154
15,040
-
TOTAL LIABILITIES
6,402
2,258
1,071
29,156
31,854
NET ASSET VALUE
319,808
324,626
202,932
226,469
221,350
UNITHOLDERS’ FUND
319,808
324,626
202,932
226,469
221,350
NUMBER OF UNITS IN
450,123
442,950
373,260
304,190
299,950
0.71
0.73
0.54
0.74
0.74
INVESTMENTS
Quoted investments
Unquoted fixed income
securities
Deposits with financial
institutions
OTHER ASSETS
Amount due from
stockbrokers
Other receivables
Tax recoverable
Bank balances
TOTAL ASSETS
NET ASSET VALUE PER
UNIT (EX –
DISTRIBUTION) (RM)
179
2001
RM’000
2000
RM’000
1999
RM’000
SBB Retirement Balanced Fund
(a)
financial years ended March 31, 1999 to 2003 are as follows:
2003
2002
RM’000 RM’000
2001
RM’000
2000
RM’000
1999
RM’000
INVESTMENT INCOME
Interest income
Dividend income
Net realised gain on sale of
Investments
2,198
1,968
2,160
1,176
1,707
351
1,063
436
1,784
373
1,117
1,677
1,034
6,979
977
260
239
-
-
-
5,544
5,252
3,092
8,478
3,134
2,083
131
5
22
1,513
81
3
61
969
72
3
33
676
56
3
29
485
50
3
42
2,241
1,658
1,077
764
580
NET INCOME BEFORE
TAXATION
3,303
3,594
2,015
7,714
2,554
TAXATION
(366)
(235)
(79)
(90)
(425)
NET INCOME AFTER
TAXATION
2,936
3,359
1,936
7,624
2,129
970
3,931
2,967
269
-
3,906
7,290
4,903
7,893
2,129
-
-
-
(3,505)
(1,573)
UNDISTRIBUTED INCOME/
(ACCUMULATED LOSS)
BROUGHT FORWARD
14,065
6,775
1,872
(2,516)
(3,072)
UNDISTRIBUTED INCOME/
(ACCUMULATED LOSS)
CARRIEDFORWARD
17,972
14,065
6,775
1,872
(2,516)
EXPENSES
Management fee
Trustee fee
Audit fee
DISTRIBUTION
EQUALISATION
DISTRIBUTION
180
(b)
statements as of March 31, 1999 to 2003 are as follows:
2003
RM’000
2002
RM’000
2001
RM’000
2000
RM’000
1999
RM’000
81,167
49,883
102,311
39,392
28,582
45,662
39,652
21,688
27,876
9,257
136,050
141,703
74,244
61,340
37,133
700
1,071
311
7,459
4,323
NET ASSET VALUE
135,350
140,632
73,933
53,881
32,810
UNITHOLDERS’ FUNDS
135,350
140,632
73,933
53,881
32,810
NUMBER OF UNITS
IN CIRCULATION (‘000)
202,223
192,660
123,220
67,410
44,850
0.67
0.73
0.60
0.80
0.73
ASSETS
Investments
Other assets
TOTAL ASSETS
LIABILITIES
NET ASSET VALUE PER
UNIT (RM)
181
SBB Composite Index Fund
(a)
financial period August 23, 1999 (date of commencement) to September 30, 2000 and financial
years ended September 30, 2001 to 2003 are as follows:
Year ended
September
30, 2003
RM’000
Year ended
September
30, 2002
RM’000
1,562
70
1,316
60
1,011
77
698
43
(2,484)
74
(2,798)
292
(852)
1,450
(1,710)
1,033
457
38
4
18
469
40
4
27
393
33
3
30
368
31
7
37
517
540
459
443
(1,369)
910
(2,169)
590
(277)
(245)
(185)
(93)
(1,646)
665
(2,354)
497
-
-
59
253
(ACCUMULATED LOSS)
/ UNDISTRIBUTED
INCOME BROUGHT
FORWARD
(880)
(1,545)
750
-
(ACCUMULATED LOSS)
/ UNDISTRIBUTED
INCOME CARRIED
FORWARD
(2,526)
(880)
(1,545)
750
INVESTMENT
INCOME
Dividend income
Interest income
Net realised (loss) / gain on
sale of investments
EXPENSES
Management fee
Trustee fee
Audit fee
NET (LOSS) / INCOME
BEFORE TAXATION
TAXATION
NET (LOSS) / INCOME
AFTER TAXATION
DISTRIBUTION
EQUALISATION
182
Year ended Period ended
September
September
30, 2001
30, 2000
RM’000
RM’000
(b) Condensed Statements of Assets and Liabilities
statements as of September 30, 2000 to 2003 are as follows:
2003
RM’000
2002
RM’000
2001
RM’000
2000
RM’000
ASSETS
Investments
Other Assets
53,932
1,625
42,919
3,373
37,614
2,296
39,710
3,111
TOTAL ASSETS
55,557
46,698
39,909
42,820
658
381
127
142
NET ASSET VALUE
54,899
45,912
39,782
42,678
UNITHOLDERS' FUND
54,899
45,912
39,782
42,678
NUMBER OF UNITS IN
122,597
118,015
106,350
99,500
0.45
0.39
0.37
0.43
LIABILITIES
NET ASSET VALUE PER
UNIT (RM)
183
5. SIGNIFICANT ACCOUNTING POLICIES OF THE FUNDS
The following accounting policies have been used in dealing with items which are considered
material in relation to the financial statements of the Funds:
(a) Basis of Accounting
The financial statements have been prepared in accordance with the provisions of the Trust Deed,
the Securities Commission’s Guidelines on Unit Trust Funds and the applicable approved
accounting standards in Malaysia.
(b) Investments
In accordance with the Deed, quoted investments in Malaysia are valued at the last done market
price quoted on the Kuala Lumpur Stock Exchange (“KLSE”) at the date of the statement of
assets and liabilities.
Investments in the Kuala Lumpur Stock Exchange Composite Index (“KLCI”) Futures are
recorded at cost at the initial margin paid and subsequently adjusted for any changes arising from
the marking to market value of the KLCI Futures, until their disposal and expiry.
The carrying values of the unquoted fixed income securities are carried at cost adjusted for
amortisation of any premium or accretion of discount over their par values at the time of
acquisition. The carrying values of the unquoted fixed income securities are revalued to reflect
the fair values (current value) using the net present value method.
Any surplus or deficit on revaluation is transferred to the Investment fluctuation reserve and is
not distributable.
(c) Income Recognition
Dividend income is recognised on the ex-dividend date.
Interest income is recognised on the accrual basis.
Realised gain or loss on sale of quoted equities and fixed income securities is arrived at after
accounting for cost of investments, determined on the weighted average cost method.
Realised gain or loss on sale/redemption of unquoted fixed income securities is measured as the
difference between the net disposal proceeds and the carrying value of the investment.
(d) Distribution Equalisation
Distribution equalisation is accounted for at the date of creation and cancellation of units. It
represents the average amount of distributable income included in the creation and cancellation
prices of units.
(e) Taxation
Income tax is calculated on the taxable investment income after deduction for permitted expenses
as provided for under Section 63B of the Income Tax Act, 1967.
184
(f) Fair value of Financial Instruments
Financial instruments comprise financial assets and financial liabilities. Fair value is the amount
at which a financial asset could be exchanged or a financial liability settled, between
knowledgeable and willing parties in an arm’s length transaction. The information presented
herein represents the estimates of fair values as at the date of statement of assets and liabilities.
Where available, quoted and observable market prices are used as the measure of fair values.
Where such quoted and observable market prices are not available, fair values are estimated
based on a range of methodologies and assumptions regarding risk characteristics of various
financial instruments, net present value and other factors. Changes in the uncertainties and
assumptions could materially affect these estimates and the resulting fair value estimates.
In addition, fair value information for non-financial and financial instruments that are outside the
scope of Malaysian Accounting Standards Board (‘MASB’) 24, Financial Instruments:
Disclosure and Presentation which requires the fair value information to be disclosed are
excluded.
A range of methodologies and assumptions had been used in deriving the fair values of the
Fund’s financial instruments at the date of statement of assets and liabilities. The total fair value
of each financial instrument is not materially different from the total carrying value.
The fair values are based on the following methodologies and assumptions:
(i)
Cash, deposits and placements with financial institutions
For cash, deposits and placements with financial institutions, the carrying value is a
reasonable estimate of fair value.
(ii)
Quoted securities
The estimated fair value is based on market price. However, if a valuation based on the
market price does not represent the fair value of the securities, for example during
abnormal market conditions or no market price is 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, then the securities are valued as determined in
good faith by the Manager, based on the methods or bases approved by the Trustee after
appropriate technical consultation.
(iii)
Unquoted fixed income securities
The estimated fair value is based on the net present value method by reference to market
indicative yields.
(iv)
Other short term financial instruments
Other short term financial instruments comprise dividend receivable, interest receivable,
income receivable, sundry receivables, payables and accruals for audit fees and tax
agent’s fees.
The carrying values of these assets and liabilities are assumed to approximate their fair
value due to short tenure of less than one year.
185
(g) Summary of financial risk management policies
The Funds’ activities are exposed to a variety of financial risk as below :(i)
Market risk
Any purchase of securities will involve an element of risk. The value of securities may
fluctuate according to the activities of individual companies, sector and overall political
and economic conditions. Such fluctuation may cause the Fund's net asset value
(“NAV”) and prices of units to fall as well as rise, and income produced by the Fund
may also fluctuate.
The market risk is managed through portfolio diversification and asset allocation
whereby the equity exposure will be reduced in the event of anticipated market
weakness.
(ii)
Single issuer risk
Any major price fluctuation of a particular security invested by the Fund may affect the
Fund's NAV and thus the prices of units.
The single issuer risk is managed by adhering to the investment limits specified in the SC
Guidelines.
(iii)
Interest rate risk
Prices of bonds move in the opposite direction with interest rates. When the interest
rates rise, prices of bonds fall and vice versa.
The interest rate risk is managed by varying the duration of fixed income securities
selected which is dependent on the anticipation of the interest rates trends. As such, the
interest rates trends will be monitored closely.
(iv)
Credit/Default risk
Credit/Default risk is the risk that an issuer or counterparty will be unable or unwilling to
meet a commitment that it has entered to with the Fund.
The Fund’s credit risk concentration is spread between interest rate and equity securities.
At any time, less than 10% at the NAV of the Fund are with any single issuer or
counterparty. All transactions in quoted investments are settled/paid upon delivery using
approved brokers.
(v)
Liquidity risk
Liquidity is the ability to convert an investment portfolio to cash without suffering any
significant loss in value. The Fund’s quoted investment is considered to be readily
realisable as they are listed on the KLSE.
The Fund aims to reduce the liquidity risk by investing mainly in companies with good
liquidity and maintaining a prudent level of liquid assets.
186
6.
SUBSEQUENT FINANCIAL STATEMENTS
No audited financial statements have been made up in respect of any period subsequent to March 31,
2003 for SBB Retirement Balanced Fund, June 30, 2003 for SBB Premium Capital Fund, July 31, 2003
for SBB Bond Fund and September 30, 2003 for SBB Index-Linked Fund and SBB Composite Index
Fund.
Yours very truly,
DELOITTE KASSIMCHAN
AF 0080
HIEW KIM TIAM
1717/8/05 (J)
Partner
187
14. UNAUDITED INTERIM AND ANNUAL ACCOUNTS FOR THE FUNDS
Fund
Financial Period
Investment income
Expenses
(i)
(ii)
RBF
6 months
period
ended 30
September
2003
DGF
6 months
period
ended 30
October
2003
RM'000
RM'000
DALI
AZAM
DALI 2
ECO
PCF
6 months 6 months
Period
Period
6 months
period
period
from 30
from 30
period
ended 30 April 2003 April 2003 ended 31 ended 31
December December
to 30
to 30
November
2003
2003
November November
2003
2003
2003
RM'000
RM'000
RM'000
RM'000 RM'000
5,469
1,176
3,343
2,607
23,333
6,025
750
373
1,413
516
6,393
3,550
264
2,808
Net income before
taxation
Taxation
4,293
736
17,308
377
897
2,843
(2,544)
(426)
(123)
(148)
(58)
(111)
(142)
(1,593)
Distribution Equalisation
3,867
(385)
3,482
613
613
17,160
(39,618)
(22,458)
319
460
779
786
179
965
2,701
(7,447)
(4,746)
(4,137)
(4,137)
17,972
(26,624)
136,732
-
-
68,777
(26,336)
21,454
(26,011)
114,274
779
965
64,031
(30,473)
1,809
1,166
5,619
1,077
7,801
3,683
277
173
555
193
4,158
1,785
4,516
671
2,239
(3,568)
6,804
300
665
217
(4,923)
255
99
5,045
-
-
92
-
5,469
116
3,343
23,333
750
1,413
141
6,393
264
1,096
68
2
10
1,176
2,379
152
5
71
2,607
5,663
302
5
55
6,025
360
12
1
373
498
16
2
516
3,360
128
5
57
3,550
2,730
46
5
27
2,808
Undistributed
Income/(Accumulated losses)
brought forward
Undistributed
Income/(Accumulated losses)
carried forward
(i) Investment income consists
of :
Dividend income
Interest income
Net realised gain/(loss) on
sale/redemption of
investments
Accretion of discount, net
Other Income
(ii) Expenses consist of :
Management fee
Audit fee
Administration expenses
188
14. UNAUDITED INTERIM AND ANNUAL ACCOUNTS FOR THE FUNDS
Fund
RBF
DGF
DALI
AZAM
DALI 2
ECO
PCF
As at 30
As at 31 As at 30 As at 30 As at 30 As at 31 As at 31
September October November November November December December
2003
2003
2003
2003
2003
2003
2003
RM'000
RM'000 RM'000 RM'000 RM'000 RM'000 RM'000
ASSETS
Quoted investments
Liquid assets
Other assets
80,990
41,173
31,148
2,497
283,280
30,444
21,661
5,099
522,729
86,603
24,829
9,286
62,009
28,864
1,702
59,377
18,018
787
351,562
41,321
42,303
5,466
334,905
40,864
5,981
155,808
340,484
643,447
92,575
78,182
440,652
381,750
6,298
6,991
8,978
2,840
645
5,469
3,923
Unitholders’ fund
149,510
333,493
634,469
89,735
77,537
435,183
377,827
Units in circulation
(‘000)
198,542
475,061
807,639
163,825
71,571
569,263
463,018
0.7530
0.7020
0.7856
0.5478
1.0834
0.7645
0.8160
Total assets
LIABILITIES
Net asset value per unit
(RM)
189
15. ACCOUNTANT’S REPORT FOR SBB MUTUAL BERHAD
January 16, 2003
SBB Mutual Berhad
50, 52 & 54 Jalan SS21/39
Damansara Utama
47400 Petaling Jaya
Selangor Darul Ehsan.
Dear Sirs,
1. INTRODUCTION
We, as Reporting Accountants of SBB Mutual Berhad (formerly known as BHLB Pacific Trust
Management Berhad) (‘the Company’ or ‘SBBMB’), have prepared this Report for inclusion in the
Master Prospectus in connection with the offer of units in the specific Funds managed by the
Company as stated below.
We are also the auditors of the Company, SBB Bond Fund, SBB Index-Linked Fund, SBB Premium
Capital Fund, SBB Retirement Balanced Fund and SBB Composite Index Fund. The remaining funds
managed by the Company are audited and reported by another firm of auditors.
2. INFORMATION ON THE FUNDS MANAGED BY THE COMPANY:
The funds presently managed by the Company are as follows :
(i)
SBB Double Growth Fund (‘DGF’), formerly known as BHLB Pacific Double Growth Fund.
(ii)
SBB Emerging Companies Growth Fund (‘ECO’), formerly known as BHLB Pacific Emerging
Companies Growth Fund.
(iii) SBB Savings Fund (‘SF’), formerly known as BHLB Pacific Savings Fund.
(iv)
SBB High Growth Fund (‘HGF’), formerly known as BHLB Pacific High Growth Fund.
(v)
SBB Dana Al-Ihsan (‘DALI’), formerly known as BHLB Pacific Dana Al-Ihsan.
(vi)
SBB Bond Fund (‘BOF’), formerly known as BHLB Pacific Bond Fund.
(vii) SBB Index-Linked Fund (‘INF’), formerly known as BHLB Pacific Index-Linked Fund.
(viii) SBB Dana Al-Mizan (‘MIZAN’), formerly known as BHLB Pacific Dana Al-Mizan.
190
(ix)
SBB HGF Sequel Fund (‘SEQUEL’), formerly known as BHLB Pacific HGF Sequel Fund.
(x)
SBB Premium Capital Fund (‘PCF’).
(xi)
SBB Retirement Balanced Fund (‘RBF’).
(xii) SBB Composite Index Fund (‘CIF’).
(xiii) SBB Dana Al-Ihsan 2 (‘DALI 2’), formerly known as BHLB Pacific Dana Al-Ihsan 2.
(xiv) SBB Dana Al-Azam (‘AZAM’), formerly known as BHLB Pacific Dana Al-Azam.
(xv) SBB Dana Al-Hikmah (‘HIKMAH’), formerly known as BHLB Pacific Dana Al-Hikmah.
(xvi) SBB Crystal Equity Fund (‘CRS’).
(xvii) SBB Equity Income Fund (‘EIF’).
All the above Funds are currently governed under the provisions of the Fourth Supplemental Deed
(to the Master Deed dated November 23, 2001) as may be amended from time to time.
3. INFORMATION ON THE MANAGEMENT COMPANY
The Company was incorporated on December 17, 1990. The principal activities of the Company
consist of the establishment and management of unit trust funds.
(a)
The financial statements of the Company for the financial years ended December 31, 2001 and
December 31, 2002 were audited and reported on by us without any qualification.
The financial statements of the Company for the financial years ended December 31, 1998,
December 31, 1999 and December 31, 2000 were audited and reported on by another firm of
auditors without any qualification.
191
(b)
Condensed income statements
The condensed income statements of the Company for the nine months ended September 30,
2003 and five financial years ended December 31, 2002 are as follows:
2003
(9 months)
2002
2001
2000
1999
1998
(unaudited) (12 months) (12 months) (12 months) (12 months) (12 months)
RM’000
RM’000
RM’000
RM’000
RM’000
RM’000
Revenue
842,492
(781,017)
663,992
(612,096)
61,708
61,475
51,896
4,601
1,883
976
66,309
(31,961)
63,358
(29,598)
52,872
(30,157)
82,866
(49,696)
44,706
(24,014)
19,642
(9,609)
(14,816)
(17,225)
(13,994)
(12,117)
(9,341)
(7,085)
(3,502)
-
(3,923)
-
(3,342)
(30)
(2,609)
(897)
(2,349)
-
(1,848)
-
Profit before tax
Income tax
expense
16,030
12,612
5,349
17,547
9,002
1,100
(4,809)
(3,358)
(2,471)
(5,567)
Profit after tax
11,221
9,254
2,878
11,980
Cost of sales
Operating profit
Other operating
income
Selling expenses
Administrative
expenses
Other operating
Expenses
Finance costs
1,390,369
(1,328,661)
192
1,138,726
(1,056,397)
558,936
(514,817)
192,327
(173,945)
82,329
44,119
18,382
537
587
1,260
9,002
(500)
600
(c) Condensed balance sheets
The condensed balance sheets of the Company based on the unaudited financial statements as at
September 30, 2003 and the audited financial statements for the five financial years ended
December 31, 2002 are as follows:
Note
Property, plant and
equipment
(d)
Current Assets
Manager’s stocks
Trade receivables
Staff loans
Other receivables
and prepaid
expenses
Amount due from
related companies
Short-term
deposits
with:
Licensed banks
Other licensed
corporations
Cash and bank
balances
September 30
2003
(unaudited)
2002
RM’000
RM’000
December 31
2001
2000
1999
1998
RM’000 RM’000 RM’000 RM’000
16,611
16,151
15,774
11,166
11,147
11,218
(e)
(f)
(g)
2,467
41,111
4,066
1,196
11,749
3,496
721
21,563
3,049
2,495
48,259
2,873
882
40,493
2,101
1,156
16,188
2,169
(f)
7,372
1,681
1,349
1,129
180
225
(h)
-
-
-
-
6
170
5,165
8,586
7,527
-
-
-
45,182
30,117
15,525
12,000
-
7,264
2,824
4,416
2,510
13,290
6,510
3,894
108,187
61,241
52,244
80,046
50,172
31,066
193
September
30
Note
2003
(unaudited)
2002
RM’000
RM’000
Current Liabilities
Trade payables
Other payables
and accrued
expenses
Provision for
KWSP fees
Amount owing to
related
companies
Amount owing to
ultimate holding
company
Tax liabilities
December 31
2000
RM’000
-
17,728
14,076
3,334
1999
RM’000
1998
RM’000
(i)
16,063
9,618
(i)
38,635
11,802
10,586
11,068
3,037
3,625
(j)
3,519
4,054
2,902
2,110
1,174
647
(h)
3,612
3,149
2,802
2,409
2,037
513
(h)
5,662
1,983
628
89
5,962
13
5,151
382
1,554
69,474
29,289
22,341
38,479
20,706
9,673
38,713
31,952
29,903
41,567
29,466
21,393
1,105
1,105
1,453
587
447
447
54,219
46,998
44,224
52,146
40,166
32,164
(l)
10,000
10,000
10,000
2,000
2,000
2,000
(m)
44,219
36,998
34,224
50,146
38,166
30,164
54,219
46,998
44,224
52,146
40,166
32,164
Net Current
Assets
Deferred
Liabilities
Deferred tax
liabilities
2001
RM’000
(k)
Net Assets
38
Represented by:
Issued capital
Unappropriated
profit
Shareholders’
Equity
194
(d) Statements of changes in equity
Issued
Capital
RM’000
Unappropriated
Profit
RM’000
Total
RM’000
Balance as at December 31, 1997
Net profit for the year
2,000
-
29,564
600
31,564
600
Dividends
2,000
-
30,164
9,002
(1,000)
32,164
9,002
(1,000)
2,000
-
38,166
11,980
40,166
11,980
Dividends
Issue of shares:
Bonus issue
2,000
-
50,146
2,878
(10,800)
52,146
2,878
(10,800)
8,000
(8,000)
Dividends
10,000
-
34,224
9,254
(6,480)
44,224
9,254
(6,480)
Net profit for the year (unaudited)
Dividends (unaudited)
10,000
-
36,998
11,221
(4,000)
46,998
11,221
(4,000)
Balance as at September 30, 2003
10,000
44,219
54,219
195
-
4.
NOTES TO THE UNAUDITED CONDENSED BALANCE SHEET
AS OF SEPTEMBER 30, 2003
(a) GENERAL INFORMATION
The principal activities of the Company consist of the establishment and management of unit
trust funds as mentioned in Item 2.
There have been no significant changes in the nature of the activities of the Company during the
financial period.
The total number of employees of the Company at the end of the financial period was 213 (2002:
185).
The registered office of the Company is located at 18th Floor, MUI Plaza, Jalan P. Ramlee, 50250
Kuala Lumpur.
The principal place of business of the Company is located at 50, 52 & 54, Jalan SS 21/39
Damansara Utama, 47400 Petaling Jaya, Selangor Darul Ehsan.
(b) SIGNIFICANT ACCOUNTING POLICIES
(i)
Basis of Accounting
The financial statements of the Company have been prepared under the historical cost
convention.
(ii) Revenue
Sales value of units is recognised upon the approval of a unitholder’s application.
Value from the cancellation of the units is recognised upon the approval by the Trustee.
Management fee income is recognised on the accrual basis.
Interest income from short-term deposits is recognised on the accrual basis.
Dividend income from the funds is recognised on receipt basis.
(iii) Income Tax
In the prior financial period, the tax effects of transactions are recognised, using the
‘liability’ method, in the period such transactions enter into the determination of net income
regardless of when they are recognised for tax purposes. However, when timing differences
give rise to net deferred tax assets, the tax effects are recognised generally on actual
realisation.
During the current financial year, the Company changed its accounting policy for the
recognition of deferred tax asset and liability in accordance with MASB Standard No. 25,
Income Taxes which became effective for accounting periods commencing on or after July
1, 2002.
196
Upon adoption of MASB 25, deferred tax liabilities are recognised for all taxable temporary
differences and deferred tax assets arising from deductible temporary differences, unused
tax losses and unused tax credits are recognised to the extent that it is probable that future
taxable profit will be available to utilise the deferred tax assets. The effect of the accounting
change on the financial statements of the Company for the current financial year is however,
not material.
(iv) Property, Plant and Equipment
Property, plant and equipment are stated at cost less accumulated depreciation and
impairment losses.
A gain or loss arising from the disposal of an asset is determined as the difference between
the estimated net disposal proceeds and the carrying amount of the asset, and is recognised
in the income statement.
The carrying amounts of property, plant and equipment are reviewed at each balance sheet
date to determine whether there is any indication of impairment. An impairment loss is
recognised whenever the carrying amount of an item of property, plant and equipment
exceeds its recoverable amount. The impairment loss is charged to the income statement
unless it reverses a previous revaluation in which case it is treated as a revaluation decrease.
Property, plant and equipment are depreciated on a straight line method to their residual
values at rates based on the estimated useful lives of the various assets.
The annual depreciation rates are as follows:
Building
Office equipment
Furniture, fittings and office renovation
Motor vehicles
2%
10% - 20%
7.5%
20%
(v) Manager’s stocks
Manager’s stocks represent units held for re-sale in the funds managed by the Company.
Manager’s stocks are valued at the lower of cost and net realisable value on an aggregate
basis. Cost is determined on the weighted average method.
(vi) Receivables
Trade and other receivables are stated at nominal value as reduced by the appropriate
allowances for estimated irrecoverable amounts. Allowance for doubtful debts is made
based on estimates of possible losses which may arise from non-collection of certain
receivable accounts.
(vii) Provisions
Provisions are made when the Company has a present legal or constructive obligation as a
result of past events, when it is probable that an outflow of resources will be recognised to
settle the obligation, and when a reliable estimate of the amount can be made.
197
(c)
REVENUE
Revenue represents sales value of units, value from the cancellation of units and management fee
income in accordance with the provisions of the Master Deed for the unit trust funds managed by
the Company.
(d)
PROPERTY, PLANT AND EQUIPMENT
As of September 30, 2003 (unaudited)
Cost
Accumulated
Depreciation
Net book value
Building
RM’000
8,512
Office
equipment
RM’000
11,394
Furniture,
fittings
and office Motor
Total
renovation vehicles
RM’000 RM’000 RM’000
5,564
1,692
27,162
1,137
6,359
2,338
717
10,551
7,375
5,035
3,226
975
16,611
(e) MANAGER’S STOCKS
September
30, 2003
(unaudited)
RM’000
(f)
Cost
2,467
Market value
2,429
TRADE RECEIVABLES, OTHER RECEIVABLES AND PREPAID EXPENSES
Trade receivables consist of:
September
30, 2003
(unaudited)
RM’000
Annual management fees due from funds
Amount receivable for sales of third party unit trust fund
Amount receivable for sales via KWSP scheme
Amount due from unitholders
29,986
1,952
8,761
412
41,111
Other receivables and prepaid expenses consist of:
September
30, 2003
(unaudited)
RM’000
6,831
Other receivables
Refundable deposits
Prepaid expenses
330
211
7,372
Other receivables comprise mainly downpayment and instalment for purchase of property, plant and
equipment. The credit period for trade receivables ranges from 1 to 90 days.
198
(g) STAFF LOANS
These relate to study, computer, motor vehicle and housing loans granted to employees of the
Company. Interest rates charged range from 2% to 5% and the staff loans are repayable over periods
ranging from 1 to 20 years. These loans are, where applicable, secured over the assets for which the
loans are granted.
(h) HOLDING COMPANY AND RELATED PARTY TRANSACTIONS
The Company is a wholly-owned subsidiary of BHLB Venture Berhad, a company incorporated in
Malaysia. The directors regard Southern Bank Berhad, a company incorporated in Malaysia and
listed on the Main Board of the Kuala Lumpur Stock Exchange, as the ultimate holding company.
The amount owing to ultimate holding company arose mainly from expenses paid on behalf and sales
commissions charged on units sold on behalf of the Company. The amount is unsecured, interest-free
with no fixed terms of repayment.
The amount owing to related companies arose mainly from investment advisory services and sales
commissions charged on units sold on behalf of the Company at agreed terms and prices. The
outstanding amount is unsecured, interest-free with no fixed terms of repayment.
September
30, 2003
(unaudited)
RM’000
Amount due to related companies:
SBB Asset Management Sdn Bhd
3,612
During the financial period, significant related party transactions are as follows:
Name of Company
BHLB Asset Management
Sdn Bhd
SBB Asset Management
Sdn Bhd
Southern Bank Berhad
SBB Securities Sdn Bhd
September
30, 2003
(unaudited)
RM’000
Nature
Investment advisory services
6,266
Investment advisory services
Sales commissions
Sales commissions
4,847
616
3
The directors of the Company are of the opinion that the above transactions have been entered
into in the normal course of business and have been established under terms that are no less
favourable than those arranged with independent third parties.
199
(i) TRADE PAYABLES, OTHER PAYABLES AND ACCRUED EXPENSES
Trade payables consist of:
September
30, 2003
(unaudited)
RM’000
Amount payable for creation of units due to funds managed
by the Company
16,063
Other payables and accrued expenses consist of:
September
30, 2003
(unaudited)
RM’000
Other payables
Accrued expenses
28,151
10,484
38,635
The amounts owing arose mainly from amount payable for redemption to unitholders, sales
commissions payable, advertisement and promotion expenses payable and performance
incentives payable.
(j) PROVISION FOR KWSP FEES
September
30, 2003
(unaudited)
RM’000
4,054
At beginning of period
Additions
Utilised
3,519
(4,054)
At end of period
3,519
The provision for Kumpulan Wang Simpanan Pekerja (KWSP) fees represent management fee
payable to KWSP in relation to investments made by EPF contributors in the unit trust funds of
the Company.
(k) DEFERRED TAX LIABILITIES
September
30, 2003
(unaudited)
RM’000
The net deferred tax liabilities are in respect of:
Temporary difference between tax capital allowances
and book depreciation of property, plant and equipment
200
1,105
(l) SHARE CAPITAL
September 30, 2003
(unaudited)
RM’000
Authorised:
25,000,000 ordinary shares of RM1 each
25,000
Issued and fully paid:
10,000,000 ordinary shares of RM1 each
10,000
(m) RESERVES
Based on the estimated tax credit and tax exempt income available and the prevailing tax rate
applicable to dividends, the Company is able to distribute all its unappropriated profit as of 30
September 2003 as cash dividend without incurring additional tax liability.
(n) CAPITAL COMMITMENTS
As of September 30, 2003, the Company has the following capital commitments relating to
purchase of property, plant and equipment:
September
30, 2003
(unaudited)
RM’000
Contracted but not provided for
Approved but not contracted for
99
3,133
3,232
5.
SUBSEQUENT FINANCIAL STATEMENTS
No audited financial statements of the management company have been made up in respect of any period
subsequent to December 31, 2002.
Yours very truly,
DELOITTE KASSIMCHAN
AF 0080
HIEW KIM TIAM
1717/8/05 (J)
Partner
201
16. CONSENTS
(a)
The consent of the Trustees, Banker, Investment Manager and Solicitor to the inclusion in this
Master Prospectus of their names in the manner and context in which such names appear have
been given before the issue of this Master Prospectus and have not subsequently been
withdrawn.
(b)
The consent of the Auditors and Reporting Accountants for the Funds and of the Auditors and
Reporting Accountants for the Manager to the inclusion in this Master Prospectus of their
names and Accountants' Report in the manner and form in which they are contained in this
Master Prospectus have been given before the issue of this Master Prospectus and have not
subsequently been withdrawn. The Reporting Accountants' responsibilities with regard to this
Master Prospectus does not extend beyond the Accountants' Reports, and that, apart from the
said Reports, the Reporting Accountants have had no involvement in the preparation of this
Master Prospectus.
(c)
The consents of the Tax Advisers to the inclusion in this Master Prospectus of their names
and the Tax Advisers’ letters in the manner and form in which they are contained in this
Master Master Prospectus have been given before the issue of this Master Prospectus and
have not subsequently been withdrawn.
202
17. DOCUMENTS AVAILABLE FOR INSPECTION
For a period of not less than twelve (12) months from the date of this Master Prospectus at the
registered office of the Manager and the Trustee, the following documents or copies thereof, where
applicable, may be inspected, without charge:•
The Deed;
•
Each material contract or document referred to in this Master Prospectus;
•
The latest annual and interim reports of the Funds;
•
All reports, letters or other documents, valuations and statements by any expert, any part of which
is extracted or referred to in this Master Prospectus;
•
The audited accounts of the Manager and the Funds for the last five financial years or from the
date of incorporation/commencement, if less than five years, preceding the date of this Master
Prospectus (where applicable);
•
Latest audited accounts of the Manager and the Funds for the current financial year (where
applicable); and
•
The written consent given by experts or persons whose reports or statements appear in this Master
Prospectus.
203
18. DIRECTORS' DECLARATION
This Master Prospectus has been seen and approved by the directors of the Manager and they
collectively and individually accept full responsibility for the accuracy of all information contained
herein and confirm, having made all enquiries which are reasonable in the circumstances, that to the
best of their knowledge and belief, the statements and information in this Master Prospectus are true
and not misleading and there are no other facts the omission of which would make any statement
herein misleading.
The Directors also do hereby state that in their opinion, the accompanying unaudited annual/interim
accounts, reflect a true and fair view of the state of affairs of the applicable Funds.
Directors:
DATO’ SERI GOH ENG TOON
DATO’ YEAP LEONG HUAT
YM RAJA PUAN SRI DATO’ NOORA ASHIKIN BTE RAJA ABDULLAH
DATO’ DR YAHYA BIN ISMAIL
TAN SRI DATO’ (DR) R.V. NAVARATNAM (INDEPENDENT)
WONG JOON HIAN (INDEPENDENT)
204
19. LIST OF OFFICES
SBB MUTUAL OFFICES
Head Office
SBB Mutual Berhad
50,52 & 54 Jalan SS21/39, Damansara Utama
47400 Petaling Jaya, Selangor Darul Ehsan
Telephone
Fax
Website
E-mail
:
:
:
03-77183000
03-77265088
:
[email protected]
www.sbbmutual2u.com
Regional Offices
59 Plaza Damansara,
Jalan Medan Setia 1, Bukit Damansara,
50490 Kuala Lumpur.
03-20956188
5A, 1st & 2nd Floors Jalan Todak 4,
Bandar Sunway Seberang Jaya,
13700 Perai, Pulau Pinang.
7458 Jalan BBN 1/1A, Putra Point One,
Bandar Baru Nilai,
71800 Nilai, Negeri Sembilan.
06-7993322
5B Block 414, Section 10,
KTLD Jalan Rubber, 93400
Sarawak.
No. 1, Jalan Pasar Baru,
Kampung Air, 88300 Kota Kinabalu, Sabah.
088-239951
088-239952
04-3702155
082-259777
Kuching,
Branches
5A, 1st Floor Jalan Todak 4,
Bandar Sunway Seberang Jaya,
04-3702155
No. 946, 2nd Floor,
Jalan Parry, 98000 Miri, Sarawak.
085-432525
U7-3, 7th Floor Menara Perbadanan,
Jalan Tengku Petra Semerak,
15000 Kota Bharu, Kelantan.
09-7471172
09-7471190
30A, First Floor, Persiaran Greentown 1,
Greentown Business Centre,
30450 Ipoh, Perak.
05-2439002
05-2439001
6-B Jalan Tengku Ampuan Zabedah 9/K,
Seksyen 9, 40100 Shah Alam, Selangor.
03-58805050
23 &23A, Jalan Harimau Tarum,
Taman Century, 80250 Johor Bahru, Johor.
07-3341748
61 Jalan Melaka Raya 24,
Taman Melaka Raya, 75000 Melaka.
06-2811111
No 13B, 2nd Floor, Jalan Memanda 7/1
Off Jalan Ampang, 68000 Ampang
03-4270 2970
32-3, 3rd Floor, Jalan 1/27F,
KL Satellite Center (KLSC), Wangsa Maju
Section 5, 53300 Kuala Lumpur.
03-41422911
Block B, Unit 11 & 12,
Level 12, Plaza Mount Kiara, Jalan 1/70C,
Mount Kiara, 50480 Kuala Lumpur.
03-62035035
60, S/2/6 & S/3/6, Block F, Plaza Damas,
Jalan Seri Hartamas 1, Seri Hartamas
50480 Kuala Lumpur
03-62033230
15-2, Jalan AU 1A/4B,
Keramat Permai Business Centre,
Off Jalan Setiawangsa, 54000 Kuala Lumpur
03-42529869
92, 2nd Floor, Jalan Burhanuddin Helmi,
Taman Tun Dr Ismail, 60000 Kuala Lumpur
03-77276603
19-3 Blok A, Jalan Hujan Rahmat 2,
OUG, 58200 Kuala Lumpur
03-77833623
Suite 3A-3, Wisma W.I.M.,
No 7, Jalan Abang Haji Openg
Taman Tun Dr Ismail, 60000 Kuala Lumpur
03- 7710 8916
46B Persiaran Zaaba, Taman Tun Dr Ismail
60000 Kuala Lumpur
03-77266275
Unit 113 & 213, Block C, Damansara Intan,
1, Jalan SS20/27,
47400 Petaling Jaya, Selangor
03-71182234
12-1, Jalan PJS 10/2, Subang Indah,
03-56376233
No 131A, 1st Floor, Jalan SS17/1A,
47500 Subang Jaya, Selangor.
03-56210788
603B&C, Jalan Samudra Utara 1,
Taman Samudra,
68100 Batu Caves, Selangor
03-61899720
Sales Offices
205
19. LIST OF OFFICES
75 Taman Aman Muhibbah,
Jalan Kampong Setiawan,
32000 Setiawan, Perak
05-6917761
18A Tingkat Taman Ipoh 6,
Ipoh Garden South, 31400 Ipoh, Perak.
05-5453343
4208, Lot 34, Block C, Ground Floor,
Bandar Baru II, P.O. Box 61827,
91028 Tawau, Sabah
089-758870
1st Floor, Lot 52 Block F,
Jati Commercial Centre, P O Box 81677,
87026 Labuan, Federal Territory.
087-428303
Lot 10, Block C,
Foo Loong Shopping Complex,
PO Box 2182, 89008 Keningau, Sabah.
087-337796
Room 805/806, 8th Floor,
Lai Piang Kee Building, Jalan Pryer,
90000 Sandakan, Sabah
089-220515
15A, Jalan Ruby,
96000 Sibu, Sarawak.
084-318743
SBB BRANCHES
PULAU PINANG
51 Jalan Sultan Ahmad Shah,
10050 Pulau Pinang
04-2261822
21, Jalan Ayer Itam,
11400 Ayer Itam, Pulau Pinang.
04-8284433
72 Jalan Besar,
11000 Balik Pulau, Pulau Pinang
04-8667988
90 Jalan Mayang Pasir, Taman Sri Tunas
11950 Bayan Lepas, Pulau Pinang
04-6432532
2, Jalan Sungai Emas
11100 Batu Feringgi, Pulau Pinang
04-8813472
1223-4 Jalan Raya
11900 Bayan Lepas, Pulau Pinang
04-6436001
70 Jalan Stesen,
14000 Bukit Mertajam, Pulau Pinang
04-5395446
4992-3 Jalan New Ferry,
12100 Butterworth, Pulau Pinang.
04-3332875
450 Jalan Dato Kramat,
10460 Pulau Pinang.
04-2292813
7087 Jalan Kampung Gajah
12200 Butterworth, Pulau Pinang.
04-3312982
49, Arked Penang Satu
KOMTAR, 10000 Pulau Pinang.
04-2620020
2904 High Street, 14300
14300 Nibong Tebal, Pulau Pinang
04-5933235
1228T, Jalan Paya Terubong
11060 Pulau Pinang
04-8275243
1284 Jalan Bahru,
13700 Prai, Pulau Pinang.
04-3901211
403 Jalan Burmah, 10350 Pulau Pinang.
04-2282131
D20-638 Gerbang Tuna, Seberang Jaya
04-3906401
1-G-2B, Medan Batu Lanchang
11600 Pulau Pinang
04-6562564
38, Lebuh Nangka Dua
14000 Bukit Mertajam, Pulau Pinang
04-5305861
1308 Jalan Besar, Sg. Bakap
14200 Sungai Jawi, Pulau Pinang.
04-5824384
43, Lebuh Pantai, 10300 Pulau Pinang.
04-2628331
1 Jalan Concord 13,
Tanjung Bungah, 11200 Pulau Pinang
04-8990144
18-A Jalan Raya, 08300 Gurun, Kedah
04-4689644
PERLIS
69, Jalan Besar, 02000 Kuala Perlis, Perlis
04-9855298
KEDAH
1564 Jalan Kota, 05000 Alor Setar, Kedah
04-7319522
206
19. LIST OF OFFICES
106-A Seberang Jalan Putera, Mergong
05150 Alor Setar, Kedah
04-7339124
201-A Jalan Tunku Putra,
09000 Kulim, Kedah
04-4905444
24-A Jalan Kampung Baru,
08000 Sungai Petani, Kedah
04-4229324
PERAK
194 Jalan Bercham,
31400 Ipoh, Perak
05-5453223
Ground Floor, Plaza Teh Teng Seng
227 Jalan Kampar, 30250 Ipoh, Perak
05-2555451
45 Jalan Tun Sambanthan
30000 Ipoh, Perak
05-2412166
51 Jalan Taiping Utara,
34600 Kamunting, Perak
05-8058560
99 & 101 Jalan Gopeng
31900 Kampar, Perak
05-4651155
3104C & D, Jalan Kampar
36700 Langkap, Perak
05-6591249
31 & 33 Jalan Lee Ming Hin,
31450 Menglembu, Perak
05-2813655
54, Pesiaran Greenhill, Greentown
30450 Ipoh, Perak
05-2415745
613 & 615 Jalan Tasik, Taman Sri Tasik,
31400 Ipoh, Perak
05-5465622
KUALA LUMPUR
Wisma Idris, 17 Jalan Sultan Ismail
50520 Kuala Lumpur
03-2066882
Ground Floor, Wisma Genting
28 Jalan Sultan Ismail, 50250 Kuala Lumpur
03-2637000
19 Lorong Ara Kiri 1
Taman Lucky Garden, 59100 Kuala Lumpur
03-2542344
J2 & K1 Taman Tunku
Bukit Tunku,50480 Kuala Lumpur
03-6514188
49 Jalan Hang Lekiu
50100 Kuala Lumpur
03-2300222
43 Jalan Barat
Off Jalan Imbi, 55100 Kuala Lumpur
03-244 6496
5 Jalan 2/116B, Kuchai Entrepreneurs'
Park, Off Jalan Kuchai Lama,
58200 Kuala Lumpur
03-7808442
317-319 Jalan Pudu,
55100 Kuala Lumpur
03-2222552
338 Jalan Raja Laut,
50350 Kuala Lumpur
03-4425888
704 & 706 Jalan Sentul,
51000 Kuala Lumpur.
03-40412418
59 Jalan Sultan, 50000 Kuala Lumpur
03-2322653
6055 Jalan Jambu Gajus,
Jinjang Selatan, 52000 Kuala Lumpur
03-6277822
63 & 65 Jalan Kampung Pandan,
Kampung Pandan, 55100 Kuala Lumpur
03-9840355
47 Jalan 3/34 A, Kepong Entrepreneurs'
Park,52100 Kuala Lumpur
03-6221242
197 & 199 Jalan Sarjana
Taman Connaught, Cheras,
56000 Kuala Lumpur
03-91316466
21 & 23 Jalan 46A / 26
Taman Sri Rampai, Setapak,
53300 Kuala Lumpur
03-4121013
1 Jalan 2/71, Taman Tun Dr. Ismail,
60000 Kuala Lumpur
03-77283688
Ground Floor, Menara Southern Bank
83, Medan Setia 1, Plaza Damansara,
Bukit Damansara, 50490 Kuala Lumpur
03-20873000
03-42910533
Jalan PJS11/2, Subang Indah,
03-56377607
SELANGOR
16 & 17 Jalan Besar,
68000 Ampang. Selangor.
207
19. LIST OF OFFICES
1 & 3 Jalan PCR 1, Kawasan Perniagaan,
Cheras Raya, Batu 11, Off Jalan Balakong,
43200 Cheras, Selangor
03-9076 8382
195 Jalan Besar,
43800 Dengkil, Selangor
03-3186899
3 Jalan Barat,
03-79550768
111 & 113 Jalan Gasing,
46000 Petaling Jaya, Selangor.
03-79578919
14 & 16 Jalan MJ/7, Medan Maju Jaya
Batu 7,Jalan Klang Lama,
03-77836929
21 Jalan S10/2, Section 10
Jalan Bukit, 43000 Kajang, Selangor
03-87374233
12 Jalan SS6/3, Kelana Jaya,
47301 Petaling Jaya, Selangor.
03-78031448
17 Jalan TK1/11A, Plaza Kinrara
47100 Puchong, Selangor
03-80757566
55-59 Jalan Cungah,
42000 Pelabuhan Klang, Selangor
03-31681515
12 & 13 Jalan Kenari 1,
Bandar Puchong Jaya,
47100 Puchong, Selangor
03-4325008
49 Jalan Maxwell,
48000 Rawang, Selangor
03-6912771
24, Jalan 14/14, Seksyen 14,
03-79560902
933 Jalan 17 / 38, Seksyen 17,
03-79553343
14 Jalan Selayang, Taman Sri Selayang,
68100 Batu Caves, Selangor.
03-61897655
26368 Jalan College,
43300 Seri Kembangan, Selangor.
03-89485052
14 Jalan Tengku Zabedah D 9/D,
Seksyen 9, 40100 Shah Alam, Selangor
03-55127822
40 & 42, Jalan SS 15/4D, Subang Jaya,
03-56340919
386 Jalan 1A / 3, Bandar Baru Sungai.
Buloh, 47000 Sungai Buloh, Selangor
03-61561386
3 Taman Cahaya, Sungai Chua,
43000 Kajang, Selangor.
03-87335711
49 & 51 Jalan Batai Laut, Taman Intan,
41300 Klang, Selangor.
03-3342 1272
45 Jalan Cempaka, Bandar Baru Ampangan,
70400 Seremban, Negeri Sembilan
06-7622843
Jalan BBN1/1F, Bandar Baru Nilai,
71800 Nilai, Negeri Sembilan
06-8500152
Lot 3110 Jalan Besar, Lukut,
71010 Port Dickson, Negeri Sembilan.
06-6511944
9/G Arab Malaysian Business Centre,
Jalan Tuanku Munawir,
70000 Seremban, Negeri Sembilan.
06-7617509
87 Jalan Loke Yew
28700 Bentong, Pahang.
09-2225866
B-338 Jalan Beserah,
25300 Kuantan, Pahang.
09-5662384
34-40 Jalan Telok Sisek,
25050 Kuantan, Pahang.
09-5554488
31 Main Road, 39200 Ringlet, Pahang.
05-4956866
06-2322188
128 Kompleks Munshi Abdullah
Jalan Munshi Abdullah, 75100 Melaka.
06-2841420
07-4328200
167 Jalan Besar,
84800 Bukit Gambir, Muar, Johor.
07-9762488
NEGERI SEMBILAN
PAHANG
MELAKA
36 & 37 Lorong Setia 1
Air Keroh Heights, 75450 Melaka.
JOHOR
Ground Floor, Kompleks Penggaram
1, Jalan Abdul Rahman,
83000 Batu Pahat, Johor
208
19. LIST OF OFFICES
75 Jalan Kuning Dua, Taman Pelangi,
80400 Johor Bahru, Johor
07-3312088
2 & 4 Jalan Dedap 20, Taman Johor Jaya,
07-3548666
2 Jalan Haji Manan,
86000 Kluang, Johor
07-7716677
382 Jalan Simbang, Taman Perling,
07-2386912
18 Jalan Belimbing,
81400 Senai, Johor.
07-5992188
48 Jalan Hang Tuah 4,
Taman Skudai Baru, 81300 Skudai, Johor
07-5589688
24 & 26 Jalan Padi 1, Bandar Baru Uda,
81200 Tampoi, Johor.
07-2379655
09-8593232
104A-B Jalan Sultan Ismail,
20200 Kuala Terengganu, Terengganu.
09-6223188
082-238072
945 Jalan Parry, 98000 Miri, Sarawak
085-437729
Lot No. 62 & 63
Inamam Commercial Centre,
88450 Kota Kinabalu, Sabah
088-439731
Block C, Lot 24, Jalan Kampung Air 4
88000 Kota Kinabalu, Sabah
088-249688
Blok B Lot No. 2, Bandar Ramai-Ramai,
Jalan Leila, 90000 Sandakan, Sabah.
089-218366
KELANTAN
681-J Jalan Che Su,
15000 Kota Bahru, Kelantan.
09-7448788
TERENGGANU
K3757 Jalan Sulaimani,
24000 Kemaman, Terengganu.
SARAWAK
282 Jalan Rubber, 93400 Kuching, Sarawak
SABAH
The Funds are also distributed by the following Institutional Unit Trust Agents (IUTA):
•
•
•
•
•
•
•
•
•
•
•
CITIBANK BERHAD
STANDARD CHARTERED BANK (MALAYSIA) BERHAD
OCBC BANK (MALAYSIA) BERHAD
EON BANK BERHAD
EON FINANCE BERHAD
SOUTHERN BANK BERHAD
RHB BANK BERHAD
SBB SECURITIES SDN BHD
INTER-PACIFIC SECURITIES SDN BHD
ENG SECURITIES SDN BHD
Other Approved IUTAs (as and when appointed by the Manager)
03-23830000
03-20726555
03-26964554
03-26941188
03-26948888
03-20873000
03-92878888
05-2530888
03-21441888
07-223 1211
Citibank Berhad is distributing PCF, RBF, CIF and BOF only. OCBC Bank (Malaysia) Berhad and Standard
Chartered Bank (Malaysia) Berhad are distributing PCF, RBF and CIF. The other IUTAs are currently
distributing all Funds except for CRS.
209
20. APPENDIX I - UNIT TRUST
DISCLOSURE STATEMENT
LOAN
FINANCING
RISK
Investing in a unit trust fund with borrowed money is more risky than investing with your own savings.
You should assess if loan financing is suitable for you in light of your objectives, attitudes to risk and
financial circumstances. You should be aware of the risks, which would include the following:I.
The higher the margin of financing (that is, the amount of money you borrow for every Ringgit of
your own money that you put in as deposit or down payment) the greater the potential for losses
as well as gains.
II. You should assess whether you have the ability to service the repayments on the proposed loan.
If your loan is a variable rate loan, and if interest rates rise, your total repayment amount will be
increased.
III. If unit prices fall beyond a certain level, you may be asked to provide additional acceptable
collateral or pay additional amounts on top of your normal installments. If you fail to comply
within the time prescribed, your units may be sold to settle your loan.
IV. Returns on unit trusts are not guaranteed and may not be earned evenly over time. This means
that there may be some years where returns are high and other years where losses are experienced
instead. Whether you eventually realise a gain or loss may be affected by the timing of the sale of
your units. The value of units may fall just when you want your money back even though the
investment may have done well in the past.
The brief statement cannot disclose all the risks and other aspects of loan financing. You should
therefore carefully study the terms and conditions before you decide to take the loan. If you are in
doubt in respect of any aspect of the Risk Disclosure Statement or the terms of the loan financing, you
should consult the institution offering the loan.
Managers
SBB MUTUAL BERHAD (formerly known as BHLB
Pacific Trust Management Berhad) (209627-H)
TO: SBB MUTUAL BERHAD (formerly known as BHLB Pacific Trust Management Berhad)
ACKNOWLEDGEMENT OF RECEIPT OF RISK DISCLOSURE STATEMENT
I acknowledge that I have received a copy of this Unit Trust Loan Financing Risk Disclosure
statement and understand its contents.
Fund’s Name
Fund’s Application
Form No
:
Signature
Full Name
Date
:
210
:
:
:
21. APPENDIX II – RATING TABLE BY RATING AGENCY MALAYSIA
RATING TABLE BY RATING AGENCY MALAYSIA
Long –Term Ratings
AAA
Issues rated AAA are judged to be of the best quality and offer highest safety
of timely payment of interest and principal.
AA
High safety of timely payment of interest and principal.
A
Adequate safety of timely payment of interest and principal. More susceptible
to changes in circumstances and economic conditions than debt in higher
rated categories.
BBB
Moderate safety of timely payment of interest and principal. Lacking in
certain protective elements. Changes in circumstances are more likely to lead
to weakened capacity to pay interest and principal than debt in higher rated
categories.
BB
Inadequate safety of timely payment of interest and principal. Future cannot
be considered as well-assured.
B
High risk on interest and principal payments. Adverse business or economic
conditions would lead to lack of ability on part of issuer to pay interest or
principal.
C
Very high risk of default. Factors present that make them vulnerable to
default. Timely payment of interest and principal possible only if favourable
circumstances continue.
D
Payment of interest and/or repayment of principal is in arrears. Already in
default.
Short – Term Ratings
P1
Very strong safety with regards to timely payment on the instrument.
P2
Strong ability to repay debt obligations.
P3
Adequate safety on repayment of debt obligations. Instrument is more
vulnerable to the effects of changing circumstances than the P1 and P2
categories.
NP
Indicates that the instrument is expected to be in default on maturity.
211
22. APPENDIX III – RATING AGENCY MALAYSIA - ISLAMIC DEBT
RATING
Rating Agency Malaysia
ISLAMIC DEBT RATINGS
LONG TERM RATINGS
RATING
DEFINITION
AAA
Issues rated in this category are judged to be of the best quality and offer highest
safety for timely payment of financial commitments under the Islamic instruments.
AA
A
BBB
BB
B
C
D
High safety for timely payment of financial commitments under the Islamic
instruments.
Adequate safety for timely payment of financial commitments under the Islamic
instruments. More susceptible to changes in circumstances and economic
conditions than Islamic instruments in higher rated categories.
Moderate safety for timely payment of financial commitments under the Islamic
instruments. Lacking in certain protective elements. Changes in circumstances are
more likely to lead to weakened capacity for timely payment of financial
commitments under the Islamic instruments than those in higher rated categories.
Inadequate safety for timely payment of financial commitments under the Islamic
instruments. Future cannot be considered as well-assured.
High risk as to timely payment of financial commitments under the Islamic
instruments. Adverse business or economic conditions would lead to lack of ability
on part of issuer to timely meet the financial commitments under the Islamic
instruments.
Very high risk of default. Factors present that make the Islamic instruments
vulnerable to default. Timely payment of financial commitments under the Islamic
instruments possible only if favourable circumstances continue.
Payment of financial commitments under the Islamic instruments is in arrears.
Already in default.
SHORT TERM RATINGS
RATING
DEFINITION
P1
Very strong safety for timely payment of financial commitments under the Islamic
instruments.
Strong safety for timely payment of financial commitments under the Islamic
instruments.
P2
P3
NP
Adequate safety for timely payment of financial commitments under the Islamic
instruments. Timely payment of financial commitments is more vulnerable to the
effects of changing circumstances than the P1 and P2 categories.
Obligations in this category have doubtful capacity for timely payment unless
significant external support is made available.
212
23. APPENDIX IV – MALAYSIA RATING CORPORATION
Corporate Debt Issue Rating
LONG-TERM RATINGS
MARC's Long-Term Ratings apply to debt issues with maturities of more than one year. These debt
ratings specifically assess the likelihood of timely repayment of principal and payment of interest over
the term to maturity of such debts.
Investment Grade
AAA
AA
A
BBB
Indicates that the ability to repay principal and pay interest on a timely basis is
extremely high.
Indicates a very strong ability to repay principal and pay interest on a timely basis,
with limited incremental risk compared to issues rated in the highest category.
Indicates the ability to repay principal and pay interest is strong. These issues could
be more vulnerable to adverse developments, both internal and external, than
obligations with higher ratings.
The lowest investment grade category; indicates an adequate capacity to repay
principal and pay interest. More vulnerable to adverse developments, both internal
and external, than obligations with higher ratings.
Non-Investment Grade
BB
B
C
D
While not investment grade, this rating suggests that likelihood of default is
considerably less than for lower-rated issues. However, there are significant
uncertainties that could affect the ability to adequately service debt obligations.
Indicates a higher degree of uncertainty, and therefore, greater likelihood of default.
Adverse developments could negatively affect repayment of principal and payment
of interest on a timely basis.
High likelihood of default, with little capacity to address further adverse changes in
financial circumstances.
Payment in default.
Note : Long-Term Ratings from AA to B may be modified by the addition of a plus (+) or minus (-)
suffix to show relative standing within the major rating categories. Bank-guaranteed issues will carry
a suffix (bg), corporate-guaranteed a (cg) and all other supports an (s) when such guarantees or
supports give favourable effect to the assigned rating.
213
23. APPENDIX IV – MALAYSIA RATING CORPORATION
SHORT-TERM RATINGS
MARC's Short-Term Ratings are assigned to specific debt instruments with original maturities of one
year or less, and are intended to assess the likelihood of timely repayment of principal and payment of
interest.
Investment Grade
MARC-1
MARC-2
MARC-3
The highest category; indicates a very high likelihood that principal and interest
will be paid on a timely basis.
While the degree of safety regarding timely repayment of principal and payment of
interest is strong, the relative degree of safety is not as high as issues rated MARC1.
The lowest investment grade category; indicates that while the obligation is more
susceptible to adverse developments, both internal and external, the capacity to
service principal and interest on a timely basis is considered adequate.
MARC-4
The lowest category; regarded as non-investment grade and therefore speculative
in terms of capacity to service principal and interest.
Note : Short-Term Ratings will also carry a suffix (bg) for bank-guaranteed issues, (cg) for corporateguaranteed issues and (s) for all other supports when such guarantees or supports give favourable
effect to the assigned rating.
214
24. APPENDIX V – ISLAMIC CAPITAL MARKET INSTRUMENT
RATING
LONG-TERM RATINGS
MARC's Long-Term Ratings are assigned to Islamic capital market instruments with maturities of
more than one year. These ratings specifically assess the likelihood of timely payment of the
instrument issued under the various Islamic financing contract(s). The rating symbols carry a
subscript "ID" to denote Islamic Private Debt Securities.
Investment Grade
AAAID
AAID
AID
BBBID
Extremely strong ability to make payment on the instrument issued under the
Islamic financing contract(s).
Very strong ability to make payment on the instrument issued under the Islamic
financing contract(s). Risk is slight with degree of certainty for timely payment
marginally lower than for instruments accorded the highest rating.
Strong ability to make payment on the instrument issued under the Islamic
financing contract(s). However, risks are greater in periods of business and
economic stress than for instruments with higher ratings.
Adequate ability to make payment on the instrument issued under the Islamic
financing contract(s). Vulnerable to moderately adverse developments, both
internal and external.
BBID
BID
CID
DID
Uncertainties exist that could affect the ability of the issuer to make payment on
the instrument issued under the Islamic financing contract(s).
Significant uncertainty exists as to timely payment on the instrument issued under
the Islamic financing contract(s). Slight adverse developments could impair
issuer's ability to fulfil such obligation.
Possesses a substantial risk of default, with little capacity to address further
negative changes in financial circumstances.
Failed to make scheduled payment on the instrument issued under the Islamic
financing contract(s).
Note : Long-Term Ratings from AA to B may be modified by the addition of a plus (+) or minus (-)
suffix to show relative standing within the major rating categories. Bank-guaranteed issues will carry
a suffix (bg), corporate-guaranteed a suffix (cg) and for all other supports a suffix (s) when such
guarantees or supports give favourable effect to the assigned rating.
215
24. APPENDIX V – ISLAMIC CAPITAL MARKET INSTRUMENT
RATING
SHORT-TERM RATINGS
MARC's Short-Term Ratings are assigned to Islamic capital market instruments with original
maturities of one year or less, and are intended to assess the likelihood of timely payment of the
instrument issued under the various Islamic financing contract(s).
Investment Grade
MARC-1ID
MARC-2ID
MARC-3ID
Extremely strong ability to make timely payment on the instrument issued under
the Islamic financing contract(s).
Strong capacity to make timely payment on the instrument issued under the Islamic
financing contract(s). Timeliness of payment is slightly susceptible to adverse
changes in operating circumstances and economic conditions.
Adequate ability to make payment on the instrument issued under the Islamic
financing contract(s). Moderately adverse changes in operating environment and
economic conditions may weaken financial capacity to fulfil such obligations.
MARC-4ID
Vulnerable to non-payment of instrument issued under the Islamic financing
contract(s). Capacity to make payment on the instrument is dependent upon
favourable business, financial and economic conditions.
Note: Short-Term Ratings will also carry a suffix (bg) for bank-guaranteed issues, (cg) for corporateguaranteed issues and an (s) for all other supports when such guarantees or supports give favourable
effect to the assigned rating.
216

MASTER PROSPECTUS

Transcription

Similar documents

ONliNE TRAdiNG

`The Honeymooners,` mutual funds and Yogi Bear

Securities Lending

sbb – telemach group absolut ok data center

Shkreli ousted from 2nd post

us government securities

PDF

IPA Direct Insight Conference Call Series: Closed End Funds

August - Albertian Institute of Management

Presentation by Edward Jones Investments regarding the