Master Prospectus

Transcription

Master Prospectus

FUND MANAGEMENT SDN BHD
(43811-W)
Master Prospectus
KAF Money Market Fund
KAF Jade Fund
KAF Bond Fund
MANAGER
KAF Fund Management Sdn Bhd (43811-W)
TRUSTEE
HSBC (Malaysia) Trustee Berhad (001281-T)
This Master Prospectus is dated 19 November 2009 and expires on 18 November 2010.
The Kaf Money Market Fund, The Kaf Jade Fund And The Kaf Bond Fund
Have Been Constituted By Way Of A Master Deed Entered Into
Between The Manager And The Trustee On 26 July 2006
INVESTORS ARE ADVISED TO READ AND UNDERSTAND THE CONTENTS OF THIS MASTER PROSPECTUS.
IF IN DOUBT, PLEASE CONSULT A PROFESSIONAL ADVISER.
FOR INFORMATION CONCERNING CERTAIN RISK FACTORS WHICH SHOULD BE CONSIDERED BY
THE PROSPECTIVE INVESTORS, SEE “RISK FACTORS” COMMENCING ON PAGE 14
Master Prospectus 2009
1
Message from the CEO
Dear Investors,
Thank you for expressing your interest in our KAF Money Market Fund, KAF Jade Fund and KAF Bond Fund (“the Funds”).
In order to understand how our Funds work, please refer to pages 5-8 under the Key Data section where you can find the
main features of the Funds (e.g. the Fund objectives and the investment policies and strategies).
We offer a wide range of Funds to cater to different investors needs and it is best that you understand how each of the
Funds work and whether they are suitable for you before making a decision to invest. You may also refer to page 6
“Investors Profile” under the Key Data section to assess whether a particular Fund is suitable for your needs.
All investments carry risks. The risk profile of a particular Fund will very much depend on the underlying investments of
the Fund. Please refer to page 6 under the Key Data section for a better understanding of the principal risks of investing in
our Funds.
You may be subjected to direct (sales charge, switching fee, transfer fee and bank commission payable during cheque
clearing) and indirect (management fee, trustee fee and other permitted expenses) charges and fees when investing in the
Funds. Please refer to page 6 under the Key Data section for further details.
If you are interested in purchasing Units of any of the Funds in this Master Prospectus, or if you have any queries or
require further information, please contact our office at 603-21688998 or email us at [email protected]. Alternatively, you
may contact any of our distributors, the list of which may be found at page 42 of this Master Prospectus.
We look forward to being of service to you.
Best wishes,
Chief Executive Officer
Thariq Usman Ahmad
(43811-W)
2
RESPONSIBILITY STATEMENTS
This Master Prospectus has been reviewed and approved by the directors of KAF Fund Management Sdn Bhd and they
collectively and individually accept full responsibility for the accuracy of the information. Having made all reasonable
inquiries, they confirm to the best of their knowledge and belief, there are no false or misleading statements, or omission
of other facts which would make any statement in the Master Prospectus false or misleading.
STATEMENTS OF DISCLAIMER
The Securities Commission has approved the issue of, offer for subscription or purchase, or issue an invitation to subscribe
for or purchase units of the unit trust funds and a copy of this Master Prospectus has been registered with the Securities
Commission.
The approval, and registration of this Master Prospectus, should not be taken to indicate that the Securities Commission
recommends the Funds or assume responsibility for the correctness of any statement made or opinion or expert expressed
in this Master Prospectus.
The Securities Commission is not liable for any non-disclosure on the part of the management company responsible for
the Funds and take no responsibility for the contents in this Master Prospectus. The Securities Commission makes no
representation on the accuracy or completeness of this Master Prospectus, and expressly disclaims any liability whatsoever
arising from, or in reliance upon, the whole or any part of its contents.
INVESTORS SHOULD RELY ON THEIR OWN EVALUATION TO ASSESS THE MERITS AND RISKS OF THE
INVESTMENT. IN CONSIDERING THE INVESTMENT, INVESTORS WHO ARE IN DOUBT ON THE
ACTION TO BE TAKEN SHOULD CONSULT THEIR PROFESSIONAL ADVISERS IMMEDIATELY.
No units will be issued or sold based on this Master Prospectus later than one (1) year after the date of this Master
Prospectus.
Investors are advised to note that recourse for false or misleading statements or acts made in connection with the Master
Prospectus is directly available through sections 248, 249 and 357 of the Capital Markets and Services Act 2007.
(43811-W)
3
CONTENTS
Section
1
2
3
4
4.1
4.2
5
5.1
5.1.1
5.1.2
5.1.3
5.1.4
5.1.5
5.1.6
5.2
5.2.1
5.2.2
5.2.3
5.2.4
5.2.5
5.2.6
5.3
5.3.1
5.3.2
5.3.3
5.3.4
5.3.5
5.3.6
5.4
5.5
5.6
5.7
5.8
6
6.1
6.1.1
6.1.2
6.1.3
6.1.4
6.1.5
6.1.6
6.2
6.2.1
Pages
Corporate Directory
Glossary
Key Data
Risk Factors
General Risks
Specific Risks of Investing in the Funds
Fund Details
Investment Policies & Strategies
Objective
Asset Allocation
Investment Strategy
Principal Risks of the Fund
Benchmark
Distribution Policy
KAF Jade Fund
Objective
Asset Allocation
Investment Strategy
Benchmark
Distribution Policy
KAF Bond Fund
Objective
Asset Allocation
Investment Strategy
Benchmark
Distribution Policy
General Risk Management
Permitted Investment
Investment Restrictions and Limits
Valuation of Assets
Policy on Gearing and Minimum Liquid Assets Requirements
Funds Performance
Average Total Return
Annual Total Return
Fund Performance
Distribution History
Portfolio Turnover Ratio
Asset Allocation
KAF Jade Fund
6
8
10
14
14
15
16
16
16
16
16
16
16
17
17
17
17
17
17
17
17
18
18
18
18
18
18
18
19
19
19
19
19
22
24
25
26
26
26
26
26
26
26
26
27
27
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Section
6.2.2
6.2.3
6.2.4
6.2.5
6.2.6
6.3
6.3.1
6.3.2
6.3.3
6.3.4
6.3.5
6.3.6
7
7.1
7.1.1
7.1.2
7.1.3
7.2
7.2.1
7.2.2
7.2.3
7.3
7.3.1
7.3.2
7.3.3
8
8.1
8.2
8.3
8.4
8.5
8.6
8.7
8.8
8.9
9
9.1
9.2
9.3
9.4
9.5
9.6
9.7
9.8
9.9
9.10
9.11
9.12
9.13
9.14
9.15
Pages
Annual Total Return
Fund Performance
Asset Allocation
KAF Bond Fund
Annual Total Return
Fund Performance
Asset Allocation
Financial Highlight of the Funds
Financial Statement of the Fund
Total Annual Expenses of the Fund
Management Expense Ratio
KAF Jade Fund
KAF Bond Fund
Fees, Charges and Expenses
Sales Charge
Repurchase Charge
Transfer Fee
Switching Fee
Management Fee
Trustee Fee
Administrative Fee
Policy on Stockbroking Rebates and Soft Commissions
Distribution Reinvestment Option
Sale and Purchase of Units
Computation of NAV
Pricing of Units
Sale of Units
Repurchase of Units
Payment of Repurchase Proceeds
Repurchase Frequency and Minimum Units Repurchased
Cooling-Off Period
Transfer of Ownership of Units
Switching Facility
Minimum Initial Investment
Minimum Additional Investment
Minimum Holdings
Where To Purchase and Redeem
Unclaimed Distributions Policy
Unclaimed Moneys Policy
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27
27
27
27
28
28
28
28
28
28
28
30
30
30
31
31
32
32
33
33
34
34
35
35
36
36
36
36
36
36
36
37
37
37
38
38
38
40
40
40
40
40
41
41
41
41
41
41
42
42
Section
9.16
10
11
11.1
11.2
11.3
11.4
11.5
11.6
11.7
11.8
11.9
12
12.1
12.2
12.3
12.4
12.5
12.6
12.7
12.8
13
13.1
13.1.1
13.1.2
13.2
13.3
13.3.1
13.3.2
13.3.3
13.3.4
13.4
13.5
13.6
13.7
13.8
13.9
13.10
13.11
13.12
13.13
14
15
16
17
18
19
20
5
Pages
Anti Money Laundering Policies and Procedures
Client Communication
The Management Company
The Management Company (The Manager)
Role of the Manager
Financial Position
Role of Directors
Board of Directors
Role of Investment Committee
The Management Team
Manager’s Delegate
Material Litigation
The Trustee
Financial Position
Experience of Trustee Business
Board of Directors
Profile of Key Personnel
Duties and Responsibilities of the Trustee
Trustee’s Statement of Responsibility
Material Litigation
Trustee’s Delegate
Salient Terms of the Deeds
Rights and Liabilities as a Unit Holder
Rights of Unit Holders
Liabilities of Unit Holders
Maximum Fees and Charges Permitted
Procedures to Increase the Direct and Indirect Fees and Charges
Sales Charge
Repurchase Fee
Annual Management Fee
Annual Trustee Fee
Permitted Expenses
The Manager’s Right To Retire
The Manager’s Powers To Remove/Replace Trustee
Trustee’s Right To Retire
Power of Trustee To Remove/Replace the Manager
Termination of the Fund
Meetings of Unit Holders
Quorum Required for Convening a Unit Holders Meeting
Unit Holders Meeting Convened by Unit Holders
Unit Holders Meeting Convened by Manager or Trustee
Conflict Of Interest
Approvals and Conditions
Taxation of the Funds
Consents
Documents Available for Inspection
Unit Trust Loan Financing Risk Disclosure Statement
Directors’ Declaration
42
43
44
44
44
44
44
45
46
47
47
47
48
48
48
48
49
50
50
50
50
51
51
51
51
51
52
52
52
52
53
53
54
54
55
55
55
56
57
57
57
58
59
60
63
64
65
66
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6
1.
C O R P O R AT E D I R E C TORY
The Manager
:
KAF Fund Management Sdn Bhd (43811-W)
Registered Office
:
Level 14, Chulan Tower
No. 3 Jalan Conlay,
50450 Kuala Lumpur
Tel: (603) 2168 8998
Fax: (603) 2168 8986
Business Address
:
No. 3 Jalan Conlay,
50450 Kuala Lumpur
Tel: (603) 2168 8998
Fax: (603) 2168 8986
E-Mail : [email protected]
Manager's Delegate
(Fund Accounting function)
:
:
HSBC (Malaysia) Trustee Bhd (001281-T)
Suite 901
9th Floor, Wisma Hamzah-Kwong Hing,
No. 1, Leboh Ampang,
50100 Kuala Lumpur
The Trustee
Registered Office
& Business Address
:
:
:
HSBC (Malaysia) Trustee Berhad(001281-T)
Suite 901,
9th Floor, Wisma Hamzah-Kwong Hing,
50100 Kuala Lumpur
Tel No: 03-2074 3200
Fax No: 03-2078 0145
Trustee's Delegate
(Foreign)
:
HSBC Institutional Trust Services (Asia) Limited
6th Floor, Tower One,
HSBC Centre
1, Sham Mong Road,
Kowloon, Hong Kong
Trustee's Delegate
(Local)
:
The Hongkong and Shanghai Banking Corporation Limited (as Custodian)
and assets held through HSBC Nominees (Tempatan) Sdn Bhd (258854-D)
50100 Kuala Lumpur
The Manager's
Board of Directors
:
YM Raja Dato’ Mufik Affandi bin Raja Khalid
Datuk Khatijah bte Ahmad
Dato’ Norraesah bte Haji Mohamad (Independent)
Thariq Usman bin Ahmad
Zulkifli bin Ishak
Abdul Rahim bin Ismail (Independent)
Investment
Committee Members
:
Datuk Khatijah bte Ahmad
Chehan Prasana Richard Perera
Wong Schuen Siang
Aamir Varcie (Independent)
(43811-W)
Secretary
:
Roslalaili Binti Sulaiman (MIA 23996)
Siti Nurmazita Binti Mustapha (LS0009160)
Banker
:
HSBC Bank Malaysia Berhad
50100 Kuala Lumpur
Reporting Accountants
and Auditors
:
KPMG
Level 10, KPMG Tower
8, First Avenue, Bandar Utama
47800 Petaling Jaya
Tax Advisers
:
KPMG
Level 10, KPMG Tower
8, First Avenue, Bandar Utama
47800 Petaling Jaya
Solicitors
:
Raja, Darryl & Loh
18th Floor, Wisma Sime Darby
Jalan Raja Laut
50350 Kuala Lumpur
Federation of Malaysian
Unit Trust Managers (FMUTM)
:
Federation of Malaysian Unit Trust Managers
19-07-3, 7th Floor, PNB Damansara
19, Lorong Dungun, Damansara Heights,
50490 Kuala Lumpur
Tel: (603) 2093 2600
Fax: (603) 2093 2700
Email: [email protected]
Website: www.fmutm.com.my
Agents
(if any)
:
Registered Agents of KAF Fund Management Sdn Bhd
Other Approved Institutional Unit Trusts Agents
(as and when appointed by the Manager)
7
(43811-W)
8
2
G L O S S A RY
the Act
The Capital Markets and Services Act 2007.
Assets of the Fund
A unit trust's holdings, which may include shares, bank deposits, bonds, cash and all
amounts due to the Fund.
Bursa Malaysia
The stock exchange managed and operated by Bursa Malaysia Securities Berhad.
Business Day
A day on which the Bursa Malaysia is open for trading.
Buying/Repurchase Price
The Price at which the Manager buys back or repurchases Units from Unit Holders.
Cooling – off Period
The period of 6 Business Days from the date of receipt by the Manager of an application for
Units during which an investor has the right to obtain a refund of his investment in the
Funds if he so requests. Such right is given only to an investor, other than a corporation,
staff and agents of the Manager, who is investing
in any unit trust fund managed by
the Manager for the first time.
Deed
The Master Deed entered into between the Manager and the Trustee dated 26 July 2006 as
amended by the Supplemental Master Deed dated 13 September 2007 and the Second
Supplemental Master Deed dated 4 November 2008 and the Third Supplemental Master
Deed dated 27 October 2009
Eligible Market
A market that is regulated by a regulatory authority, operates regularly, is open to the public
and has adequate liquidity for the purposes of the Fund in question.
Fund
The KAF Money Market Fund or the KAF Jade Fund or the KAF Bond Fund referred to
individually.
Funds
The KAF Money Market, Jade and Bond Funds referred to collectively.
Guidelines
Means the Guidelines on Unit Trust Funds issued by the SC as amended from time to time.
KBF
The KAF Bond Fund
KJF
The KAF Jade Fund
KMMF
The KAF Money Market Fund
Long-term
A period of more than 5 years.
Medium-term
A period between 3 to 5 years.
Management Company or
Manager or KFM
KAF Fund Management Sdn Bhd
Minimum Holding
At any one point in time, the minimum number or value of Units of a particular Fund which
must be held by a Unit Holder in order for the account of the Unit Holder to be
maintained with the Manager.
Net Asset Value (NAV)
The NAV of the Fund is determined by deducting the value of all the Fund’s liabilities from
the value of all the Fund’s assets, at the valuation point. For the purpose of computing the
annual management fee and annual trustee fee, the NAV of the Fund should be inclusive of
the management fee and the trustee fee for the relevant day.
(43811-W)
9
NAV per Unit
At a particular point in time, the NAV of the Fund at that point in time divided by the total
number of units in circulation at the same point in time.
SC
The Securities Commission of Malaysia established under the Securities Commission Act
1993.
Selling Price
The price at which the Manager sells Units to Unit Holders.
Short-term.
A period of less than 2 years.
The Act
the Capital Markets and Services Act 2007 including all amendments thereto all regulations,
rules and guidelines issued in connection therewith.
The Trustee
HSBC (Malaysia) Trustee Berhad.
Units
In respect of each of the Funds, is a measurement of the right or interest of a Unit Holder in
a Fund and means a Unit of a Fund.
Units in Circulation
In relation to a Fund, means Units of that Fund created and fully paid for and which have
not been cancelled in accordance with the Deed.
Unit Holders
The person registered as the holder of Units including persons jointly
registered.
(43811-W)
10
3.
K E Y D ATA
THIS SECTION IS ONLY A SUMMARY OF THE SALIENT INFORMATION ABOUT THE FUND, INVESTORS
SHOULD READ AND UNDERSTAND THE WHOLE PROSPECTUS BEFORE MAKING ANY INVESTMENT
DECISIONS.
Information on the Funds
Fund Category
Page
KAF MONEY
MARKET FUND
KAF JADE FUND
KAF BOND FUND
Money Market
Equity
Bond/Fixed Income
Income
Growth
Income
Fund Type
Approved Fund Size
2,000,000 Units
Financial Year End
Investment
Objective
5,000,000 Units
31 August
The Fund aims to
generate regular income
for Unit Holders by
investing primarily in
money market
instruments
The Fund aims to provide
investors with capital
appreciation by accessing
the long term growth
potential of stock markets
in China and North Asia
The Fund aims to
provide a regular
income stream by
investing in medium
to long term fixed
income instruments.
16
17
18
Asset Allocation
The Fund will invest
primarily in high-quality
short-term instruments
with a minimum
short-term credit rating
of P1/MARC1 or long
term rating of AA3/AAThe Fund will invest not
less than 90% of its
NAV in permitted
investments with a
remaining maturity
period of not more
than 365 days.
(43811-W)
The Fund will invest up to
100% of its assets in China
and North Asia related
investments that may
comprise of funds and
equities.
The Fund will invest up to
100% in bonds and other
fixed income securities.
16
17
The Fund will only invest
in securities with a
minimum short-term
credit rating of
P2/MARC2 or long
term rating of A3/A-
18
Investment
Strategy
Performance
Benchmark
The Fund will invest in
a diversified portfolio
of short-term money
market instruments in
order to give an
enhanced return on
cash investments as
an alternative to other
short term investments
such as savings and
fixed deposits.
The Fund aims to have up
to 100% of its investments
in China and North Asia
related investments to
benefit from the strong
growth of the economies
in that region.
KL Inter-Bank Offered Rate
(KLIBOR) – 1 month
Hang Seng Index
The Fund will be invested
in a portfolio of China and
North Asia investments
consisting of collective
investment schemes,
equities and/or Malaysian
equities which will focus
on companies listed on
the Bursa Malaysia doing
significant business related
to China and North Asia.
The investment strategy
adopted by the Fund
will be based on the
outlook of the economy,
future interest rates and
future yield curve.
The tenure of the bonds
and other fixed income
securities will vary
depending on the view
of future yield curve.
16
RAM-Quant MGS Index
(All Durations)
16
11
17
18
18
19
Investors’ Profile
Investors with a low to
medium risk appetite
looking for a short-term
investment with regular
income and high
liquidity.
Investors with a medium to
high risk profile looking
for a mixture of capital
gains and income over the
medium to long term from
some overseas exposure in
China / North Asia.
Investors with a low to
medium risk profile
seeking a steady income
stream over the medium
to long term.
Principal Risks
of Investing in
the Fund
Liquidity Risk
Credit/Default Risk
Interest Rate Risk
Market Risk
Specific Stock Risk
Liquidity Risk
Currency Risk
Country Risk
Liquidity Risk
Interest Rate Risk
Credit/Default Risk
16
17
20
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13
Frequency and
Minimum Units
Repurchased
The minimum amount to be
repurchased is 10 Units.
There is no limit on
frequency of redemptions.
Time of Payment
of Repurchase
Proceeds
The Business Day following
the day the repurchase
request is received by
the Manager.
Within 10 days of the day the repurchase request is
received by the Manager.
40
40
Cooling-off Period
The period of six (6) Business Days from the Manager's receipt of the
application for Units.
40
Switching Facility
Yes
41
Transfer Facility
Yes
42
Distribution Policy
Distribution Policy
It is intended that the Fund
will distribute income once
every quarter of the year.
Distribution of income will
be incidental but the Fund
will seek to distribute
income once a year
depending on the
performance of the Fund.
It is intended that the Fund
will distribute income at
least once a year
17
18
19
Other Information
Deed(s)
Master Deed dated 26 July 2006
Supplemental Master Deed dated 13 September 2007
Second Supplemental Master Deed dated 4 November 2008
Third Supplemental Master Deed dated 27 October 2009
The Manager or
Management
Company
KAF Fund Management Sdn. Bhd
43
The Trustee
HSBC (Malaysia) Trustee Berhad
48
Avenue for Advice
You may contact our customer service. For more information please refer to page 40.
There are fees and charges involved and investors are advised to consider the fees and charges before investing in the Funds.
Unit prices and distributions payable, if any, may go down as well as up.
Past performance of the Funds is not an indication of its future performance.
Prospective Unit Holders should read and understand the contents of the Master Prospectus and, if necessary, should consult
their adviser(s).
For information concerning certain risk factors which should be considered by prospective investors, see “Risk Factors”
commencing on page 14.
(43811-W)
14
4.
RISK FACTORS
Prior to making an investment, prospective investors should consider the following risk factors carefully in addition to the other
information set forth elsewhere in this Prospectus. Although the Manager seeks to minimize risks by investing in a diversified
portfolio, investors should be warned that there are potential risks in investing in unit trusts. They include:
4.1 General Risks
Market risk - Market risk cannot be eliminated by diversification. It stems from the fact that there are other economy-wide perils,
which threaten all businesses. That is why investors are exposed to market uncertainties, that no matter how many stocks they
hold, fluctuation in the market caused by uncertainties in the economy, political and social environment will affect the market
price of unit trust funds.
Specific stock risk - The value of individual stock is mainly determined by its potential growth in earnings, sound management etc.
Failing to achieve the expected earnings would result in the stock price declining which in turn affects the performance of the
unit trust.
Fund management risk - The performance of any unit trust fund depends on the experience and expertise of the investment
managers. Poor management of the unit trust may jeopardize its performance.
Distribution risk - There is no guarantee on the investment returns or on the distribution to Unit Holders.
Inflation risk - A unit trust fund is subject to the risk of an investor’s investment not growing proportionately to the inflation rate
making the investor’s purchase power net of inflation fall over time.
Currency risk - It is also known as foreign exchange risk. It is a risk associated with investments that are denominated in foreign
currencies. When foreign currencies fluctuate in an unfavorable movements against Ringgit Malaysia, the investments will face
currency losses in addition to the capital gains/losses. This will lead to a lower NAV of the Fund.
Liquidity risk - It is a risk that the investment cannot be sold at or near its actual value without taking a significant discount.
Loan financing risk - Investors should assess the inherent risk of investing with borrowed money which include risk of increase in
interest rates, risk of inability to provide additional collateral should the unit prices fall.
Credit/default risk - Credit risk refers to the possibility that the issuer of a security will not be able to make timely payments of
interest on the coupon payment date or principal repayment on the maturity date. This may lead to a default in the payment of
principal and interest and ultimately a fall in the value of unit trust funds.
Interest rate risk - Bond prices move in the opposite direction with interest rates. Investors will suffer capital loss when interest rates
rise, resulting in a fall in bond prices.
Compliance risk - The risk that the Manager and others associated with the fund do not follow the rules set out in the fund’s
constitution, or the law that governs the fund, or will act fraudulently or dishonestly. It also includes the risk that the Manager
not complying with internal control procedures. The non-compliance may expose the fund to higher risks that may result a fall in
the value of the unit trust funds.
Country risk - The foreign investment of the Fund may be affected by risks specific to the country which it invests. Such risks
include changes in country’s economic fundamentals, social and political stability, currency movements and foreign investment
policies etc. These may have an adverse impact on the prices of securities of listed companies.
(43811-W)
15
4.2 Specific Risks of Investing in the Funds
Liquidity risk is managed by exercising prudence in the selection of investments.
Interest rate risk – Interest rate risk refers to the effect of interest rate movements on the investments held by the Fund. Interest rate
risk is managed by exercising prudence in the selection of investments, strict monitoring of those investments and ensuring
sufficient diversification of the Fund’s investments.
principal and interest and ultimately a fall in the value of unit trust funds. Managing credit risk involves diversification of the
Fund’s investments.
KAF Jade Fund
Market risk - Market risk cannot be eliminated by diversification. It stems from the fact that there are other economy-wide perils,
which threaten all businesses. That is why investors are exposed to market uncertainties, that no matter how many stocks they
hold, fluctuation in the market caused by uncertainties in the economy, political and social environment will affect the market
price of unit trust funds.
Specific stock risk - The value of individual stock is mainly determined by its potential growth in earnings, sound management etc.
Failing to achieve the expected earnings would result in the stock price declining which in turn affects the performance of the
unit trust. Specific stock risk is managed by exercising prudence in stock selection.
Currency risk - It is also known as foreign exchange risk. It is a risk associated with investments that are denominated in foreign
currencies. When the foreign currencies fluctuate with unfavourable movements against Ringgit Malaysia, the investments will
face currency losses in addition to the capital gains/losses. This will lead to a lower NAV of the Fund. Currency risk is managed
by exercising prudence in the selection of investments, strict monitoring of those investments and ensuring sufficient
diversification of the Fund’s investments.
Country risk - The foreign investment of the Fund may be affected by risks specific to the country which it invests. Such risks
include changes in country’s economic fundamentals, social and political stability, currency movements and foreign investment
policies etc. These may have an adverse impact on the prices of securities of listed companies. Country risk is managed by
exercising prudence in the selection of investments, strict monitoring of those investments and ensuring sufficient diversification
of the Fund’s investments.
KAF Bond Fund
Interest rate risk – Interest rate risk refers to the effect of interest rate movements on the investments held by the Fund. Interest rate
risk is managed by exercising prudence in the selection of investments, strict monitoring of those investments and ensuring
sufficient diversification of the Fund’s investments.
principal and interest and ultimately a fall in the value of unit trust funds. Managing credit risk involves diversification of the
Fund’s investments.
(43811-W)
16
5.
FUNDS DETAILS
THE KAF MONEY MARKET FUND
5.1
Investment Policies and Strategies
5.1.1
Objective
The objective of the Fund is to generate regular income for investors in the form of distributions through investments
primarily in the short-term money market instruments.
This provides the Unit Holder with an investment vehicle that will provide the same levels of liquidity as a Savings
Account which is held by the Unit Holder.
Any change in objective will require Unit Holder Approval.
5.1.2
Asset Allocation
Up to 100% invested in short-term money market instruments. The remainder being in cash deposits.
This Fund will invest in a diversified portfolio of short-term money market instruments. Due to the nature of this Fund,
its policy would be to hold only liquid money market instruments.
This Fund will try to achieve its objective by investing primarily in high-quality short-term instruments with a
minimum short-term local credit rating of P1/MARC1 or long-term credit rating of AA3/AA-.
The value of the Fund’s holdings in permitted investments which have a remaining maturity period of not more than
365 days will be maintained at not less than 90% of the Fund’s NAV.
Up to 10% of the Fund will be invested in permitted investments that have a maturity period of more than 365 days
but less than 732 days.
5.1.3
Investment Strategy
The Fund’s assets will be placed in deposits or invested in money market instruments such as treasury bills, Negotiable
Certificates of deposits, Bankers Acceptances, repurchase agreement (repos) and promissory notes as well as short-term
debentures maturing within 365 days with a minimum credit rating of P1/MARC1 or long term rating of AA3/AA-.
The strategy is to invest in liquid, low risk short-term investments with a high degree of capital preservation.
In the unlikely event of credit rating downgrading, the Manager reserves the right to deal with the security in the best
interest of investors, bearing in mind that the instrument would mature in a few months time.
5.1.4
• Liquidity risk
• Interest rate risk
• Credit/default risk
Risk Management in response to adverse market conditions, economic or political conditions
Risk is minimised by way of the nature of the Fund's investments, the Fund will invest mainly in Malaysian
government, banked-backed and highly rated corporate securities. It is also restricted to investing a minimum of 90%
of its assets into instruments that have a maturity of less than 365 days, this ensures a high level of liquidity for the
Fund's holdings. In response to adverse conditions, market, economic, political or otherwise, the Manager may adjust
the investment exposure of the fund and shift investments into other permitted investments as approved by the SC in
order to maintain the Fund's objective of providing a regular income stream to investors.
(43811-W)
5.1.5
17
Benchmark
The conventional 1 month interbank deposit rate at the Interbank Money Market in Kuala Lumpur, as can be found on
the Bank Negara Malaysia website or any equivalent source.
5.1.6
Distribution Policy
The Fund will aim to distribute income once every quarter of the year. Any income distribution will be paid within
21days from the distribution declaration date.
“Investment in the fund is not the same as placing funds in a deposit with a financial institution. There are
risks involved and investors should rely on their own evaluation to assess the merits and risks when
investing in the fund.
THE KAF JADE FUND
5.2
5.2.1
Objective
The Fund aims to provide investors access to the long term growth potential of stock markets in China and North Asia.
5.2.2
Asset Allocation
In order to meet its objectives, the Fund will invest up to 100% of its assets in China and North Asia related
investments that may comprise of collective investment schemes and equities.
5.2.3
Investment Strategy
The Fund will seek to meet its objectives by investing up to 100% of its assets into a mixture of collective investment
schemes and equities. The Fund will be invested in a portfolio of China and North Asia investments consisting of
collective investment schemes, equities and/or Malaysian equities which will focus on companies listed on the Bursa
Malaysia doing significant business related to China and North Asia. Generally, companies and funds with reasonably
good growth prospects over the medium to long-term are sought. In identifying such companies, the Fund relies on
fundamental research where the financial health and industry growth prospects are considered. In the selection of
funds, management process, quality and past track records will be the primary considerations
5.2.4
•
•
•
•
•
Market Risk
Specific Stock Risk
Liquidity Risk
Currency Risk
Country Risk
(43811-W)
18
Risk is minimized by way of the diversified nature of the Fund's investments, the Fund may invest in securities in
Malaysia, China, Hong Kong and Taiwan. It is a balanced Fund that holds both equities and fixed income investments
which have low correlation. In response to adverse conditions, market, economic, political or otherwise, the Manager
may adjust the investment exposure of the fund and shift investments back to Malaysia if conditions are unfavorable
overseas and vice versa. The Manager may also decide to alter the investments of the Fund and reduce equity exposure
to protect the capital of the Fund and/or use Futures to hedge against adverse market conditions when deemed
appropriate. A defensive stance can also be taken by investing in permitted investments that have low correlation to
market movements.
5.2.5
Benchmark
The Fund aims to consistently provide returns that equal or better that of the Hang Seng Index.
5.2.6
Distribution Policy
Distribution of income will be incidental but the Fund will seek to distribute income once a year depending on the
performance of the Fund. Any income distribution will be paid within 21 days from the distribution declaration date.
THE KAF BOND FUND
5.3
5.3.1
Objective
The Fund aims to provide investors with a steady income stream by investing in medium to long term fixed income
instruments.
5.3.2
Asset Allocation
The Fund will invest primarily in medium to longer-term government bonds, private debt securities and other fixed
income securities. There will be no equity investment. In terms of asset allocation, the fund will be 80% invested in
the above mentioned fixed income securities at most times. The balance will be held in cash deposits and shorter-term
money market instruments. The Manager may take temporary defensive positions that may be inconsistent with the
Fund’s principal strategy in attempting to respond to adverse market conditions, economic, political or any other
conditions. Under such situations, a larger proportion of the Fund may be temporary invested in cash deposits and
shorter term money market instruments. This will be the case if the view taken is that interest rates are set to rise
sharply as instruments with shorter maturities suffer less capital loss that a longer term instrument in a rising interest
rate environment.
5.3.3
Investment Strategy
The Fund seeks to meet its objectives of producing a steady and recurring annual income stream with long-term capital
growth by investing in a portfolio of fixed income securities such as sovereign bonds and corporate debt with the
balance invested in money market instruments.
As much as possible, the Fund will seek to maximise the return potential of the Fund by investing in corporate bonds
that command higher yields than money market instruments. In doing so, the Fund will likely be exposed to the risks
of adverse interest rate movements and corporate credit deterioration. On the other hand, should interest rates turn
favourable i.e. fall, or corporate credit of the bond issues improve, then the Fund stands to benefit from the resultant
capital gains. Nevertheless, the credit risks assumed are limited to the extent that any bond invested must have credit
ratings of no lower than A3/A-. Notwithstanding, the exposures to the risk and return potentials need to be managed
actively to achieve the risk-reward trade-off that is reasonable to the fund.
(43811-W)
5.3.4
19
• Liquidity risk
• Interest rate risk
• Credit/default risk
While the Fund would normally hold a high exposure to bonds, should the need arise, due to adverse conditions, be
they market, economic, political or otherwise; the Manager may pursue a strategy of lowering the Fund's bond
holdings and shifting the investments to other permitted instruments as deemed appropriate. Other defensive
strategies that the Manager may use to counter adverse conditions include:• To lengthen or shorten the average maturity or duration of the Fund's holdings, in anticipation of changing interest
rates;
• Selecting investments that carry ratings higher than the allowable minimum short-term credit rating of P2/MARC2
or long term rating of A3/A- to ensure the liquidity of the Fund's investments; and
• Invest more of the Fund's holdings in bank or government guaranteed investments or investments that are secured
against assets to mitigate default risks
5.3.5
Benchmark
The benchmark will be the RAM-Quant MGS Index (All Durations)
5.3.6
Distribution Policy
It is intended that the Fund will pay out distribution at least once a year. Any income distribution will be paid within
21 days from the distribution declaration date.
5.4
General Risk Management
Proper risk management is ensured throughout the entire investment management process. Some of the general
measures which the Manager will employ are:
• Adhering to the Fund's investment objectives, policies and strategies of the funds.
• Undertaking stringent evaluation of movements in market prices and regularly monitor, review and report to the
Investment Committee to ensure that all the Fund's investment objectives are met.
• Employing a stringent screening process by conducting fundamental analysis of economic, political and social
factors to evaluate their likely effects on the performance of the markets and sectors.
• Practicing prudent liquidity management in a timely and cost effective manner.
• Determining effective asset allocations
5.5
Permitted Investments
The Fund will invest primarily in short-term debentures, money market instruments and/or place deposits with
financial institutions.
1. Fixed income securities traded in or under the rules of an Eligible Market;
2. Fixed Income securities issued by Bank Negara Malaysia, the Malaysian government and government related
agencies such as Danamodal Nasional Berhad, Pengurusan Danaharta Nasional Berhad, Khazanah Nasional Berhad
and Cagamas Berhad;
3. Issues guaranteed by the Government of Malaysia or Bank Negara Malaysia or any State Government in Malaysia;
(43811-W)
21
5. Ringgit-denominated deposits and placement of money at call with any bank having Islamic Banking facilities;
6. Convertible loan stocks and exchangeable bonds traded on Eligible Markets;
7. Units or shares in other collective investment schemes; and
8. Any other form of investments as may be approved by the relevant authorities from time to time where necessary.
i) Investment in Foreign Securities
The investment of the Funds may consist of foreign securities traded in or under the rules of a recognized foreign
market up to such amount as may be allowed by the relevant authorities. However, the exposure would be reviewed
and reduced if the investment environment becomes unfavourable. Under such circumstances the Funds will invest
in liquid assets and/or any other securities.
ii) Investment in Unlisted Securities
The Funds investments in unlisted securities shall not exceed 10% of the NAV of the Funds; the Manager will
ensure that it has appropriate policies and procedures for the valuation of those unlisted securities.
The Manager does not envisage making such investments, however, should the Manager decide to do so, the
unlisted securities will be valued at fair value determined in good faith by the Manager, verified by the auditor of
the Fund and approved by the Trustee.
iii) Investment in other Collective Investment Schemes
Investment of the Funds may consist of units or shares in other collective investment schemes (hereinafter referred
to as “target schemes”). Investments in target schemes are subject to the following conditions:
•
investment in target schemes must be relevant and consistent with the objectives of the Funds;
•
investment of the target schemes must be in line with the general investment principles of the Guidelines;
•
the target scheme must be regulated and registered/authorised/approved by the relevant regulatory authority in its
home jurisdictions; and
•
there must not be any cross holding between the Funds and the target scheme where they are managed by the same
manager, or where the target scheme is managed and administered by any party related to the Manager or its
delegate thereof.
The Funds will only invest in target schemes should the target scheme be particularly appropriate based on its
investment style, security, class of securities, market or geographic area. Unit Holders will also not be subject to
any increase in overall fees and charges.
(43811-W)
22
5.6
Investment Restrictions and Limits
Subject to the Guidelines, the purchase of Permitted Investments stated earlier shall not contravene the following
limits, unless otherwise revised by the SC from time to time:
(a) The value of the Fund’s holding in permitted investments must not be less than 90% of the Fund’s NAV;
(b) The value of the Fund’s holdings in permitted investments which have a remaining maturity period of not more
than 365 days must not be less than 90% of the Fund’s NAV;
(c) The value of the Fund’s holding in permitted investments which have a remaining maturity period of more than 365
days but fewer than 732 days must not exceed 10% of the Fund’s NAV;
(d) The value of the Fund’s investments in debentures and money market instruments issued by any single issuer must
not exceed 20% of the Fund’s NAV;
(e) The value of the Fund’s investments in debentures and money market instruments issued by any single issuer may be
increased to 30% if the debentures are rated by any domestic or global rating agency to be of the best quality and
offer highest safety for timely payment of interest and principal;
(f) The value of the Fund’s placement in deposits with any single licensed institution must not exceed 20% of the
Fund’s NAV;
(g) The value of the Fund’s investments in debentures and money market instruments issued by any group of companies
must not exceed 30% of the Fund’s NAV;
(h) The Fund’s investments in debentures must not exceed 20% of the securities issued by any single issuer;
(i) The Fund’s investments in money market instruments must not exceed 20% of the instruments issued by any single
issuer;
(j) The Fund’s investment in collective investment schemes must not exceed 25% of the units/shares in any collective
investment scheme;
(k) There will be no restriction or limit for securities issued or guaranteed by the Malaysian Government or Bank
Negara Malaysia; and
(l) Liquid assets must be held in the form of cash, deposits with licensed institutions and/or other institutions licensed
or approved to accept deposits, or any other instrument capable of being converted into cash within seven (7) days
(43811-W)
23
KAF Jade Fund
(a) The value of the Fund’s investment in unlisted securities must not exceed 10% of the Fund’s NAV. This limit
however does not apply to securities that have been approved for listing and offered directly to the Fund;
(b) The value of the Fund’s investments in ordinary shares issued by any single issuer must not exceed 10% of the
Fund’s NAV;
(c) The value of the Fund’s investment in transferable securities and money market instruments issued by any single
issuer must not exceed 15% of the Fund’s NAV. The Manager has sought and received approval from the SC for
this limit to be increased to 30% of the Funds NAV for the investment into the Credit Agricole Greater China
Fund;
(d) The value of the Fund’s placement in deposits with any single institution must not exceed 20% of the Fund’s NAV;
(e) The Fund’s exposure from derivatives positions must not exceed the Fund’s NAV at all times;
(f) The value of the Fund’s over-the-counter (OTC) derivative transaction with any single counter-party must not
exceed 10% of the Fund’s NAV;
(g) The aggregate value of the Fund’s investments in transferable securities, money market instruments, deposits and
OTC issued by or placed with (as the case may be) any single issuer/institution must not exceed 25% of the Fund’s
NAV;
(h) The value of the Fund’s investments in units/shares of any collective investment scheme must not exceed 20% of
the Fund’s NAV;
(i) The value of the Fund’s investments in transferable securities and money market instruments issued by any group of
companies must not exceed 20% of the Fund’s NAV;
(j) The Fund’s investments in transferable securities must not exceed 10% of the securities issued by any single issuer;
(k) The Fund’s investments in debentures must not exceed 20% of the debentures issued by any single issuer;
(l) The Fund’s investments in money market instruments must not exceed 10% of the instruments issued by any single
issuer;
(m) The Fund’s investment in collective investment schemes must not exceed 25% of the unit/shares in any one
collective investment scheme; and
(n) There will be no restriction or limit for securities issued or guaranteed by the Malaysian Government or Bank
Negara Malaysia.
(43811-W)
24
KAF Bond Fund
(a) The value of a bond/fixed income Fund’s investment in debentures issued by any single issuer must not exceed 20%
of the Fund’s NAV;
(b) The Fund is authorised to invest no more than 20% of the NAV of the Fund in the debentures issued by any single
issuer. However, provided the debentures are of the best quality and are of the best quality and offer highest safety
for timely payment of interest and principal as rated by any domestic or global rating agency, the Fund’s exposure
to a single issuer may exceed 20% but must not exceed 30% of the Fund’s NAV;
(c) The value of a bond/fixed income Fund’s investment in debentures issued by any one group of companies is not to
exceed 30% of the NAV of the Fund;
(d) The Fund’s investment in debentures must not exceed 20% of the debentures issued by any single issuer;
(e) The Fund’s investment in collective investment schemes must not exceed 25% of the units/shares in any one
collective investment scheme; and
(f) There will be no restriction or limit for securities issued or guaranteed by the Malaysian Government or Bank
Negara Malaysia.
The above limits and restrictions must be complied with at all times based on the most up-to-date value of the Funds
and value of the investments. However, under the Guidelines, 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
respective Fund (whether as a result of an appreciation or depreciation in the value of the investments, or as a result of
repurchase of Units or payment made from the respective Fund). The Manager will not make any further acquisitions
to which the relevant limit is breached and the Manager should within reasonable period of not more than 3 months
from the date of the breach take all necessary steps and actions to rectify the breach.
5.7
Valuation of Assets
The method of valuation for the KAF Money Market Fund, KAF Jade Fund and KAF Bond Fund are as follows:
•
The Fund will value its investments on the basis prescribed in the Deed and the Guidelines on Unit Trust Funds.
•
Listed securities (including suspended counters), which are quoted on a stock exchange, valuation will be based on
the last done market price of the securities which is the price at the end of a particular Business Day. Accordingly,
investments of the Funds in listed securities which are quoted on the Bursa Malaysia will be valued as at 5:00 p.m.
or such time as may be specified by the SC. In the case of newly subscribed issues e.g. rights and warrants which
have not yet been traded, valuation shall be at cost.
•
Investments in unquoted securities (other than bonds and fixed income securities) will be valued based on methods
deemed to be fair and reasonable that are acceptable to the Manager, verified by the Auditor and approved by the
Trustee. The valuation will take into consideration the cost of the securities, the quoted prices or securities of
comparable publicly traded companies, market conditions, the underlying collateral, financial data and projections
of the company furnished to the Manager and such other factors as the Manager may deem relevant.
•
The valuation of each unit or share in any collective investment scheme will be based on the last published Net
Asset Value per Unit or share of such collective investment scheme or, if unavailable, on the average of the last
published buying price and the last published selling price of such unit or share (excluding any sales charge
included in such selling price).
(43811-W)
5.8
25
•
Unquoted debt securities will be valued on a daily basis based on fair value prices quoted by a bond pricing agency
(BPA) registered with the SC. If the Manager is of the view that the price quoted by the BPA for a specific bond
differs from the market price by more than 20 basis points, the Manager may use the market price provided that
the Manager adheres to the requirements as stipulated in the SC Guidelines.
•
Investment in foreign debt securities, either market value or in the absence of reliable market quotation, the average
indicative price obtained from at least 3 independent dealers will be used. Valuation on foreign debt securities will
be done on at least weekly basis.
•
Investment in futures contracts e.g. FTSE Bursa KLCI futures, Three-Month KLIBOR futures traded on Malaysian
Derivatives Exchange will be “marked to market” at the end of each trading day.
•
Derivative type assets will be valued on a “marked to market” basis daily; provided by the issuers as a daily market
valuation. In any event, the Manager shall ensure that the investment is at fair value as determined in good faith by
the Manager.
•
Investments such as Banker Acceptance, Government and/or any other government-related agencies Investment
Issues (GII), Bank Negara Negotiable Notes, Cagamas Bonds, Negotiable Certificate of Deposit, are valued each
day by reference to the value of such investments and the profits accrued thereon for the relevant period.
•
Cash balances in hand, deposits placed with banks or other financial institutions and placement of money at call
with investment banks are valued each day by reference to the value of such investments and the profits accrued
thereon for the relevant period.
•
The Manager calculates the value of the Funds at the close of each Business Day.
Policy on Gearing and Minimum Liquid Assets Requirements
The Funds are not permitted to 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.
Except for securities lending as provided under the Guidelines, none of the cash or investments of the Funds may be
lent. Further, the Funds may not assume, guarantee, endorse or otherwise become directly or contingently liable for or
in connection with any obligation or indebtedness of any person.
In structuring the portfolio of the Funds, the Manager will maintain at least a minimum of 2% of the Fund’s NAV as
liquid assets to ensure short-term liquidity in the Funds to meet operating expenses and possible redemption of Units.
(43811-W)
26
6.
FUNDS PERFORMANCE
6.1
KAF MONEY MARKET FUND
6.1.1
6.1.2
6.1.3
1 Year
3 Year
3.39%
2.78%
Annual Total Return
2007
2008
2009
1.85%
3.10%
3.39%
Fund Performance
KAFMMKT: vs Benchmark (Month On Month) Calendar Fund Performance As at 31 Oct 2009 (Since: Dec 2006)
Annualised: KAFMMKT 3.15% Benchmark 3.14%
0 .4 %
K2M oM
BM M oM
0 .4 %
0 .3 %
0 .4 %
Time Weighted Return
0 .3 %
0 .3 %
0 .3 %
0 .3 %
0 .3 %
0 .3 %
0 .3 %
0 .3 %
0 .3 %
0 .3 %
0 .2 %
0 .3 %
0 .2 %
0 .2 %
0 .2 %
0 .2 %
0 .2 %
0 .2 %
0 .2 %
0 .2 %
0 .2 %
0 .2 %
0 .2 %
0 .2 %
0 .2 %
0 .2 %
0 .1 %
0 .1 %
0 .0 %
Nov -0 8
De c-0 8
Ja n - 0 9
Fe b - 0 9
Ma r-0 9
Apr -09
May -09
Ju n - 0 9
J u l- 0 9
Aug -0 9
Se p - 0 9
O ct - 0 9
For the period since inception, the KAF Money Market Fund returned +4.96% percent against the benchmark
overnight rate which returned +8.61%. The weaker performance for the fund relatively over the long term is due to
higher management costs in the initial years of the fund. For the year to date, the KAF Money Market Fund returned
2.18% against the benchmark which returned 1.45%. This result has been obtain by the shift into higher yielding
commercial papers and short term bonds.
TWRR
6.1.4
KAF MM Fund (%)
Benchmark (%)
Cumulative YTD
+2.18%
+1.45%
Cumulative YTD(Annualised)
+3.34%
+2.17%
Cumulative Since Inception
+4.96%
+8.61%
Cumulative Since Inception (Annualised)
+1.73%
+2.96%
There were no distributions, bonuses or splits for the KAF Money Market Fund over the period.
6.1.5
PTR (times)
(43811-W)
2009
2008
2007
7.95
4.12
3.23
6.1.6
Asset Allocation
31 Aug 2009 %
31 Aug 2008 %
31 Aug 2007 %
Corporate Bonds
41.32
32.37
14.23
Money Market Instruments
42.00
67.36
81.94
Cash
16.45
0.03
3.74
Others
0.23
0.24
0.09
Total
100.0
100.0
100.00
6.2
KAF JADE FUND
6.2.1
6.2.3
1 Year
3 Year
3.28%
2.82%
Annual Total Return
2007
2008
2009
8.65%
-3.47%
3.28%
Fund Performance
KJF: vs RAMQ/HSI Benchmark (Month On Month) Calendar Fund Performance As at 31 Oct 2009 (Since: Dec
2006) Annualised: KJF 2.08% RAMQ/HSI Benchmark 4.83%
1 0 .0 %
K2 M o M
BM M oM
8 .4 %
8 .0 %
7 .1 %
6 .3 %
6 .1 %
6 .0 %
6.2.2
27
4 .0 %
3 .5 %
3 .1 %
3 .3 %
3 .0 %
3 .0 %
2 .7 %
2 .4 %
1 .9 %
2 .0 %
1 .4 %
0 .6 %
0 .7 %
- 2 . -43%
.2 %
0 .3 %
-3 . 0 %
Jan -0 9
Fe b-0 9
0 .5 %
0 .1 %
- 2 . -71%
. 8 %- 2 . 2 %
0 .0 %
-2 . 0 %
-4 . 0 %
No v - 0 8
De c- 0 8
Mar-0 9
A p r -0 9
Ma y - 0 9
Ju n - 0 9
J u l- 0 9
Au g-0 9
Se p - 0 9
O ct - 0 9
For the annualised period since inception, the KAF Jade Fund returned 2.17% percent against the benchmark which
returned 7.21% over the same period. For the year to date, the KAF Jade Fund returned 13.27% against the benchmark
which returned 18.54%. The weaker performance of the fund is mainly due to the small size of the fund at current and
the impact of costs on a fund of this size.
TWRR
KAF Jade Fund (%)
Benchmark (%)
Cumulative YTD
+13.27%
18.54%
Cumulative YTD(Annualised)
+20.86%
30.30%
Cumulative Since Inception
+6.27%
9.01%
2.17%
7.21%
Cumulative Since Inception (Annualised)
(43811-W)
28
6.2.4
There were no distributions, bonuses or splits for the KAF Jade Fund over the year.
6.2.5
2009
2.78
2008
0.74
31 Aug 2009 (%)
31 Aug 2008 (%)
31 Aug 2007 (%)
Fixed Income
61.62
0.00
0.00
Malaysian Equities and Funds
5.65
0.00
0.00
Foreign Equities and Funds
26.54
21.88
34.04
Cash
5.80
78.10
65.16
Others
0.09
0.02
0.80
Total
100.0
100.00
100.00
PTR (times)
6.2.6
Asset Allocation
6.3
KAF BOND FUND
6.3.1
1 Year
10.51%
6.3.2
3 Year
5.36%
Annual Total Return
2007
4.48%
2009
10.51%
2008
1.08%
Fund Performance
KAFBOND: vs RAM Q MGS Bond Index (Month On Month) Calendar Fund Performance As at 31 Oct 2009
(Inception Date: Dec 2006) Annualised: KAFBOND 6.08% RAMQ 3.86%
4 .0 %
K2 M o M
RQM o M
3 .3 %
3 .0 %
3 .0 %
6.3.3
2007
0.16
2 .7 %
2 .0 %
1 .1 %
1 .0 %
1 .4 %
1 .1 %
1 .1 %
1 .3 %
1 .2 %
1 .1 %
0 .6 %
0 .6 %
0 .4 %
- 0 . -22%
. 5 % - 0 . 10 %
.0 %
-0 . 2 %
0 .1 %
-0 . 3 %
0 . 6 % 0 . 70%
.6 %
-0 . 2 %
0 .0 %
-1 . 0 %
-2 . 0 %
-3 . 0 %
Se p - 0 8
O ct - 0 8
(43811-W)
No v - 0 8
De c-0 8
Ja n - 0 9
Fe b -0 9
Ma r- 09
A pr- 09
May - 09
Ju n - 0 9
J u l- 0 9
A u g-0 9
29
For the period since inception, the KAF Bond Fund returned 13.66% percent against the benchmark RAM
Quantshop MGS Index (All Durations) which returned 11.09% over the same period. For the year to date, the
KAF Bond Fund returned 6.27% against the benchmark which returned -0.70%.
6.3.4
There were no distributions, bonuses or splits for the KAF Bond Fund over the year
6.3.5
PTR (times)
6.3.6
2009
2008
2007
1.38
0.56
0.16
Asset Allocation
KAF Bond Fund: Portfolio Composition (Security Type)
31 Aug 2009 (%)
31 Aug 2008 (%)
31 Aug 2007 (%)
Corporate Bonds
84.20
97.61
97.23
Malaysian Government Securities
0.00
0.00
0.00
Cash and Money Market Instruments
14.79
1.22
1.15
Others
1.01
1.17
1.62
100.00
100.00
100.00
Total
KAF Bond Fund: Portfolio Composition (Credit)
31 Aug 2009 (%)
31 Aug 2008 (%)
Government Guaranteed
0.00
0.00
Corporate Bonds - AAA
6.41
13.43
Corporate Bonds - AA
56.97
49.81
Corporate Bonds - A
20.82
34.37
Corporate Bonds – BBB or lower
0.00
0.00
Cash and Others
15.80
2.39
Total
100.00
100.00
(43811-W)
30
7
FINANCIAL HIGHLIGHT OF THE FUNDS
7.1
KAF MONEY MARKET FUND
7.1.1
Audited Statement of Income and Expenditure
INVESTMENT INCOME
Interest income
Accretion of discount
Amortisation of premium
Net realised gain on sale of investments
EXPENSES
Management fee
Trustee’s fee
Auditors’ remuneration
Tax agent’s fee
Administrative expenses
Net income before taxation
Tax expense
Net income for the year
26.7.2006 to
31.8.2007
RM
2009
RM
2008
RM
318,115
381,195
(44,028)
18,677
_______
673,959
----------
258,823
348,252
(47,941)
3,066
______
562,200
---------
54,319
139,227
(12,650)
_______
180,896
----------
79,478
13,640
10,000
3,900
2,889
_______
109,908
----------564,051
_______
564,051
======
61,182
10,707
10,000
2,500
443
_______
84,832
---------477,368
_______
477,368
======
20,065
18,000
10,000
2,500
125
_______
50,690
---------130,206
_______
130,206
======
564,051
_______
564,051
======
477,368
_______
477,368
======
130,206
_______
130,206
======
Net income for the year made up as follows:
Realised
Unrealised
Audited statement of assets and liabilities
ASSETS
Unquoted investments
Deposits with a licensed financial institution
Interest receivable
Cash at bank
TOTAL ASSETS
LIABILITIES
Amount due to Manager
Amount due to Trustee
Other payables
TOTAL LIABILITIES
(43811-W)
2009
RM
2008
RM
2007
RM
48,319,473
9,540,000
134,086
566
_________
57,994,125
--------------
15,278,599
36,021
4,574
_________
15,319,194
--------------
13,757,905
500,000
14,123
34,440
_________
14,306,468
--------------
24,517
2,541
12,500
_________
39,930
--------------
17,546
884
12,500
_________
30,930
--------------
4,000
15,188
12,500
_________
31,688
--------------
31
NET ASSETS VALUE ATTRIBUTABLE TO
UNITHOLDERS
REPRESENTED BY:
Unit holders’ capital
Retained earnings
Investment fluctuation reserves/(deficit)
NUMBER OF UNITS IN CIRCULATION
UNITHOLDERS PER UNIT (RM)
7.1.2
7.1.3
57,954,565
========
15,288,264
========
14,274,780
========
56,718,611
1,171,625
64,329
_________
57,954,565
========
552,047
========
14,686,095
607,574
(5,405)
_________
15,288,264
========
150,568
========
14,143,636
130,206
938
_________
14,274,780
========
144,976
========
104.98
========
101.54
========
98.46
========
Management Fee
(RM)
%
Trustee Fee
(RM)
%
Other Expenses
(RM)
%
Total Annual
Expenses (RM)
%
79,478
0.4
13,640
0.07
16,789
0.08
109,908
0.56
The Management Expense Ratio (MER) indicates the costs that a Fund incurred in the course of administration. It is
calculated by taking the fees and expenses paid out of a particular Fund as a percentage of the average NAV of that
Fund determined on a daily basis over the financial period. The MER is an important ratio that investors can use to
compare the costs incurred by a particular Fund with other funds within the same category. A lower MER indicates the
effectiveness of the Manager in managing the costs of the Fund.
Illustration:
MER =
Management Fees + Trustee Fees + Other Expenses
Average NAV of the Fund calculated on a daily basis
X 100%
The Management Expense Ratio for the Fund as at 31 August 2009 is 0.56%.
(43811-W)
32
7.2
KAF JADE FUND
7.2.1
2009
RM
INVESTMENT INCOME
Interest income
Investment income
Net realised gain on sale of investments
EXPENSES
Management fee
Trustee’s fee
Tax agent’s fee
Realised loss on foreign exchange
Tax expense
Net income (loss) for the year
2008
RM
26.7.2006 to
31.8.2007
RM
1,600
7,905
11,749
1,313
______
22,567
----------
26,921
7,920
45,955
______
80,796
----------
18,188
_______
18,188
----------
17,928
801
8,000
2,500
8,457
2,613
_______
40,299
----------(17,732)
_______
(17,732)
======
19,566
1,030
8,000
2,500
4,059
151
_______
35,306
----------45,490
_______
45,490
======
6,451
18,000
8,000
2,500
475
173
________
35,599
-----------(17,411)
________
(17,411)
======
(17,732)
________
(17,732)
=======
45,490
________
45,490
=======
(17,411)
________
(17,411)
=======
2008
RM
2007
RM
Net income (loss) for the year up as follows:
Realised
Unrealised
ASSETS
Investment
Other receivables
Cash at bank
TOTAL ASSETS
LIABILITIES
Other payables
TOTAL LIABILITIES
(43811-W)
2009
RM
1,198,420
1,184
73,825
__________
1,273,429
---------------
324,990
1,150,800
307
9,463
__________
1,485,560
---------------
432,866
825,000
10,127
3,573
__________
1,271,566
---------------
1,685
75
17,159
_________
18,919
-------------
12,497
85
10,558
_________
23,140
-------------
1,261
17,504
10,500
_________
29,265
-------------
33
UNITHOLDERS
REPRESENTED BY:
Retained earnings
Investment fluctuation reserves/(deficit)
7.2.2
7.2.3
1,254,510
========
1,462,420
========
1,242,301
========
1,217,926
10,347
26,237
__________
1,254,510
========
11,841
========
1,422,892
28,079
11,449
__________
1,462,420
========
14,213
========
1,143,796
(17,411)
115,916
__________
1,242,301
========
11,717
========
105.95
========
102.89
========
106.03
========
Management Fee
(RM)
%
Trustee Fee
(RM)
%
Other Expenses
(RM)
%
Total Annual
Expenses (RM)
%
17,928
1.33
801
0.07
13,113
1.0
40,299
3.52
(43811-W)
34
7.3
KAF BOND FUND
7.3.1
INVESTMENT INCOME
Interest income
Amortisation of premium
Net realised (loss)on sale of investments
EXPENSES
Management fee
Trustee’s fee
Tax agent’s fee
Tax expense
26.7.2006 to
31.8.2007
RM
2009
RM
2008
RM
2,920,975
678,420
(279,432)
(35,657)
________
3,284,306
------------
2,908,493
312,163
(496,147)
(187,158)
________
2,537,351
------------
1,547,495
39,165
(290,200)
182,707
________
1,479,167
------------
230,756
40,382
10,000
3,900
2,543
________
287,581
-----------2,996,725
________
2,996,725
=======
219,035
38,331
10,000
2,500
219
________
270,085
-----------2,267,266
________
2,267,266
=======
113,630
19,885
10,000
2,500
120
________
146,135
-----------1,333,032
________
1,333,032
=======
2,996,725
________
2,996,725
=======
2,267,266
________
2,267,266
=======
1,333,032
________
1,333,032
=======
Net income for the year made up as follows:
Realised
Unrealised
ASSETS
Unquoted investments
Interest receivable
Cash at bank
TOTAL ASSETS
LIABILITIES
Other payables
TOTAL LIABILITIES
(43811-W)
2009
RM
2008
RM
2007
RM
65,875,200
11,569,000
791,422
819
_________
78,236,441
--------------
53,893,000
642,775
670,000
2,368
_________
55,208,143
--------------
47,353,800
787,142
562,215
_________
48,703,157
--------------
31,906
3,834
12,500
_________
48,240
--------------
31,065
3,249
12,500
_________
46,814
--------------
6,016
2,803
12,500
_________
31,319
--------------
35
UNITHOLDERS
REPRESENTED BY:
Retained earnings
Investment fluctuation reserves /(deficit)
7.3.2
7.3.3
78,188,201
========
55,161,329
========
48,671,838
========
70,599,487
6,597,023
991,691
_________
78,188,201
========
687,620
========
53,407,308
3,600,298
(1,846,277)
_________
55,161,329
========
536,181
========
47,442,025
1,333,032
(103,219)
_________
48,671,838
========
478,331
========
113.71
========
102.88
========
101.75
========
Management Fee
(RM)
%
Trustee Fee
(RM)
%
Other Expenses
(RM)
%
Total Annual
Expenses (RM)
%
230,756
0.4
40,382
0.07
16,443
0.02
287,581
0.50
The audited financial statements of the Funds are disclosed in the Funds’ annual report and the annual report is
available upon request.
The Funds’ annual report is available upon request.
(43811-W)
(43811-W)
8.7
37
Administrative Fees
Only direct fees or costs incurred will be paid out of the Funds. These include the following:
•
•
•
•
•
•
•
•
•
Commissions paid to brokers;
Auditors’ fee;
Tax Adviser’s fee;
Valuation fee;
Taxes;
Custodial charges;
Tax vouchers;
Annual/Interim reports; and
Independent Investment Committee Member fee.
Expenses related to the issuance of this prospectus will be borne by the Manager.
8.8
Policy on Stockbroking Rebates and Soft Commissions
The Manager or the Trustee (for its own account) or any delegate thereof must not retain any rebate from, or otherwise
share in any commission with, any broker in consideration for direct dealings in the investments of the Funds. The
Manager will pursue a policy of not accepting any Stockbroking Rebates.
However, goods and services (“soft commissions”) from any broker may be retained by the Manager or any delegate
thereof, only if the goods and services are of demonstrable benefit to the Unit Holders such as research materials and
computer software which are incidental to the investment management activities of the Fund.
8.9
Distribution Reinvestment Option
If income is distributed, it will be forwarded to Unit Holders by distribution cheques to the latest address shown in the
Register. Unit Holders may, however, choose to re-invest the distribution by selecting the proper option in the
Application Form or calling our Customer Service for assistance. If Unit Holders choose to reinvest their distributions
or in the absence of any written instructions, their reinvestments will be executed at NAV with NO sales charge. The
date of reinvestment of distribution shall be the income payment date. If Unit Holders wish to realise any capital gains
of the units held or distribution units, they can request the Manager to repurchase all or part of their units.
There are fees and charges involved and investors are advised to consider them before investing in the Funds.
(43811-W)
38
9.
9.1
SALE AND PURCHASE OF UNITS
Computation of NAV
The Net Asset Value of each of the Funds is determined by deducting the value of all the respective Fund’s liabilities
from the value of all the respective Fund’s assets, at their respective valuation point. For the purpose of computing the
annual management fee and annual trustee fee, the NAV of the Funds is inclusive of the management fee and the trustee
fee for the relevant day.
The NAV per Unit of a particular Fund at a valuation point is determined by dividing the NAV of that Fund at that
valuation point by the number of Units in circulation of that Fund at the same valuation point. As an illustration, if for
example, at 5.00 pm on 2 October the NAV of the KJF is RM210,000,000 and the number of Units in circulation for
that Fund is 1,900,000, the NAV per Unit of the KJF at that point in time would be:
RM210,000,000
1,900,000
= RM110.5263
9.2
Pricing of Units
Single Pricing
As the SC has implemented the Single Pricing Regime on the 1st July 2007 wherein all unit trust funds shall be based
on single price, i.e., the NAV per Unit of a Fund. The Selling Price and Buying/Repurchase Price per Unit for the
Funds shall be the NAV per Unit of the respective Funds. The Selling Price and Buying Price of Units are based on
forward pricing; this means that Units will be bought and sold on the NAV per Unit at the valuation point next
following the receipt by the Manager of an application to buy or a request to repurchase Units. For any
purchase/redemption request received or deemed to have been received via fax notifications from agents by the
Manager at or before 12.00 p.m., the selling price/buying price would be the NAV per Unit at the end of the Business
Day on which the request is received by the Manager. Any request received or deemed to have been received after this
cut-off time would be considered as having been received on the next Business Day and would be the NAV per Unit on
that next Business Day.
Example:
Assuming the NAV per Unit on 9 July is RM0.50 and if you make a payment of RM10,000.00, the amount to be
invested in a Fund is calculated as follows:
Total amount invested
Total sales charge (0.00%) incurred
=
=
RM10,000.00
RM0.00
Total amount to be paid by you
=
RM10,000.00
Incorrect Pricing
Subject to any relevant law, if there is an error in the pricing of the NAV per Unit of the Fund; the Manager will take
immediate remedial action to correct the error. Rectification shall, where necessary, extend to the reimbursements of
money as follows if the error is at or above the significant threshold of 0.5% of the NAV per Unit:
(a) if there is an over pricing in relation to the purchase and creation of Units, the Fund shall reimburse the Unit
Holder;
(b) if there is an over pricing in relation to the repurchase of Units, the Manager shall reimburse the Fund;
(c) if there is an under pricing in relation to the purchase and creation of Units, the Manager shall reimburse the Fund;
and
(d) if there is an under pricing in relation to the repurchase of Units, the Fund shall reimburse the Unit Holder or
former Unit Holder.
(43811-W)
39
The Manager retains the discretion whether or not to reimburse if the error is below 0.5% of the NAV per Unit or
where the total impact on an individual account is less than RM10.00 in absolute amount. This is because the
reprocessing costs may be greater than the amount of the adjustment.
Calculation of Selling Price
If, for example an application for Units of the KMMF is received at or before 12.00 p.m. on 9 July and the NAV per
Unit of the KMMF at the end of the Business Day on 9 July is RM98.1421, under the single pricing regime, the Selling
Price per Unit of that Fund will be RM98.1421. As the Manager does not intend to impose a sales charge for the
KMMF, if an investor decides to invest RM10,000 at or before 12.00 p.m. on 9 July he would receive.
Say for example the NAV per Unit for KMMF at the
end of the Business Day on 9 July
= RM98.1421
The number of Units that will be issued to the
investor will be : RM10,000.00 divided by RM98.1421 (the NAV per Unit for KMMF)
= 101.8931 Units of the KMMF
If on the other hand, the application for Units of the KMMF is received after 12.00 p.m. on 9 July, the Selling Price per
Unit will be the NAV per Unit of the KMMF as at the close of the following Business Day, i.e.,10 July.
Calculation of Buying or Repurchase Price
If for example a repurchase request in respect of the KMMF is received by the Manager at or before 12.00 p.m. on 12
July and the NAV per Unit of the KMMF at the end of the Business Day on 12 July is RM100.3456, under the single
pricing regime, the Buying/ Repurchase Price per Unit will be RM100.3456. The Manager does not intend to impose a
repurchase charge in respect of the KMMF Fund. Should an investor wish to repurchase RM10,000 worth of Units, he
would receive:
Say for example the NAV per Unit for KMMF at the
end of the Business Day on 12 July = RM100.3456
The number of Units that will be redeemed
by an investor will be : RM10,00.00 divided by RM100.3456 (the NAV per Unit for AIF)
= 99.6556 Units of KMMF repurchased
The total amount to be paid to an investor will be the number of Units to be redeemed multiplied with the NAV per
Unit.
= 99.6556 Units x RM100.3456
= RM10,000.00
Therefore the investor will receive RM10,000.00 as redemption proceeds.
If on the other hand, the request for repurchase for Units of the KMMF is received after 12.00 p.m. on 12 July, the
Buying/Repurchase Price per Unit will be the NAV per Unit of the KMMF as at the close of the following Business Day,
i.e.,13 July.
Policy on rounding adjustment
In calculating your investments with us, the NAV per Unit of the Fund which is also the Selling and Buying Price per
Unit of the Fund and the Units allocated to you will be rounded to four decimal places.
(43811-W)
(43811-W)
41
Qualified Unit Holders have the right to request a cancellation of their investments within 6 Business Days of the day
the purchase application is received by the Manager. Unit Holders who exercise their cooling-off rights will receive the
NAV per Unit on the day the Units were first purchased. When a cooling-off right is exercised, the money must be
refunded to the Unit Holder within 10 days of the receipt of the notice of cooling-off by the Manager.
9.8
Transfer of Ownership of Units
Subject to the discretion of the Manager, Unit Holders may transfer the ownership of their Units of any Fund to any
person at any point in time by completing the transfer application form and returning it to the Manager on any
Business Day. Transfers must be in terms of Units and not in Ringgit Malaysia (RM) value. A fee of RM50 will be
charged for each transfer of ownership.
9.9
Switching Facility
Unit Holders wishing to switch their investments from one Fund to another may do so by redeeming their holdings
from the initial fund and re-investing the money into the new fund. There is no switching fee imposed on any of the
Funds; neither is there a limit on the frequency and number of switches.
9.10
9.11
9.12
9.13
Fund Name
RM1,000 worth of Units
KAF Jade Fund
KAF Bond Fund
Fund Name
RM1,000
KAF Jade Fund
RM1,000
KAF Bond Fund
RM10,000
Minimum Holdings
Fund Name
Minimum Holdings
10 Units or RM1,000.00 whichever value is lower
KAF Jade Fund
KAF Bond Fund
Where to Purchase and Redeem
Units can be bought or sold on any Business Day from Monday to Friday between 9.00 a.m. to 5.00 p.m. at the
following locations:
HEAD OFFICE
No. 3 Jalan Conlay
50450 Kuala Lumpur
Tel: 03 – 2168 8998
Fax: 03 – 2168 8986
(43811-W)
42
DISTRIBUTOR - Philip Mutual Bhd
Main Office
B-2-7, Megan Avenue II
12, Jalan Yap Kwan Seng,
50450 Kuala Lumpur
Tel : 603-2715 9802
Fax: 603-2166 6417
E-mail: [email protected]
9.14
Unclaimed Distributions Policy
Distributions paid out by way of cheque but not presented before its expiry date by Unit Holders will be re-invested in
additional Units of the Funds at such time as the Manager may deem fit. If the Unit Holder no longer holds any Units
in a Fund, the moneys will be handled in accordance with the Unclaimed Moneys Act 1965.
9.15
Unclaimed Moneys Policy
Any moneys other than distributions payable to Unit Holders which remain unclaimed after one year from the date of
payment will be handled by the Manager in accordance with the requirements of the Unclaimed Moneys Act, 1965.
9.16
Anti-Money Laundering Policies and Procedures
Money Laundering is a process intended to conceal the benefits derived from unlawful activities which are related,
directly or indirectly, to any serious offence so that they appear to have originated from a legitimate source.
The Anti-Money Laundering Act (AMLA) was passed by Parliament in 2001 and gazetted as law in 2003. The Financial
Intelligent Unit (FIU) of Bank Negara Malaysia (BNM) has been established to carry out the functions as the
competent authority under the AMLA. All market intermediaries under the Securities Industry Act 1983 (“SIA”), Futures
Industry Act 1993 (“FIA”), and management companies approved by the Securities Commission under the Securities
Commission Act 1993(“SCA”) are obliged to comply with the provisions of the Anti-Money Laundering Act
2001(“AMLA”).
Under the AMLA, any person who:
a) engages in, or attempts to engage in; or
b) abets the commission of;
money laundering, commits an offence and shall on conviction be liable to a fine not exceeding five million ringgit or
to imprisonment for a term not exceeding five years or both.
We have anti money laundering policies in place where we will perform checks on all customers without exception.
Application for Units must be accompanied by proper identification documents for our verification. All customers will
be checked against various reliable sources for money laundering information.
Investors are advised not to make payment in cash when purchasing units of a fund via any institutional/retail
agent.
(43811-W)
10.
43
CLIENT COMMUNICATION
Unit Holders will/can receive regular updates on the Fund and on their investment through:
(i)
Newspapers
From time to time, Unit Holders will be able to obtain information pertaining to the Funds from the press. The
Funds’ daily Unit buying and Selling Prices, the NAV per Unit, annual management fee and sales charge will be
quoted in at least 2 major newspapers to enable Unit Holders to monitor their investments.
(ii)
Financial
The Manager will provide Unit Holders with an annual report within 2 months of the Funds’ financial year-end
and an interim report within 2 months of the end of the period covered. A Financial Statement audited by the
Fund’s appointed auditors will be included in the annual report. The Trustee will prepare a report to Unit
Holders in both the annual and interim reports stating its opinion on the conduct of the Manager, in particular
whether the Manager had managed the Fund in accordance with the limitation on its investment powers as set
out in the Deed and whether the Manager had acted in accordance with the Deed, Guidelines, securities laws
and other relevant laws.
(iii)
Statement of Accounts
The Manager will issue a statement to Unit Holders confirming the current shareholdings and transactions
relating to their units in the Fund.
(iv)
Customer Service
Unit Holders can seek assistance from our customer service personnel at our Head office during the stated office
hours.
No. 3 Jalan Conlay
50450 Kuala Lumpur
Tel:
03 2168 8998
Fax No.: 03 2168 8986
Office Hours: - 9am to 5.00pm Monday to Friday
(43811-W)
44
11.
11.1
THE MANAGEMENT COMPANY
The Management Company (The Manager)
KAF Fund Management Sdn Bhd (KFM) is a licensed fund manager that provides professional investment services for
clients looking to invest in the fixed income and equity markets within Malaysia and throughout the Asia-Pacific
region.
KFM was established with the view that the growing diversity of investment products and the increasing complexity of
investors' requirements create the need for professional fund managers with extensive experience and expertise in both
the fixed income and equity markets.
Our mission is to provide long term consistent returns for our clients in line with their investment objectives and risk
profiles.
The company was incorporated in Malaysia on 18 December 1978 under the Companies Act, 1965. It has an
authorised and paid-up capital of RM10 million.
As at 3 November 2009, KFM had a staff force of 10 based at its head offices in Kuala Lumpur. KFM is part of the KAF
Group of Companies, an integrated bumiputera financial services company.
The KAF Group of Companies, since 1973, has been involved in money broking, and foreign exchange broking,
stockbroking, futures broking, government securities trading, private debt origination and investment, equity research,
financial advisory services, securities underwriting and fund management.
As at 3 November 2009, KFM was managing in excess of RM1.3 billion across all asset classes for clients ranging from
insurance companies, corporations, private trusts and high net worth individuals.
In 1999, KFM was appointed as an "Approved Fund Manager" by the Employees Provident Fund (EPF) for participation
in its EPF Members' Investment Scheme.
In 2005, KFM was appointed to the Employees Provident Fund (EPF) external Fixed Income Managers Panel and is
currently managing a portion of the EPF portfolio.
11.2
Role of the Manager
The Manager is responsible for the investment management and marketing of the Funds; servicing Unit Holders’ needs;
keeping proper administrative records of Unit Holders and the Funds; ensuring compliance with stringent internal
procedures and laws and guidelines of relevant authorities.
11.3
Financial Position
Financial Year Ended 31 May
2009 (RM)
2008 (RM)
2007 (RM)
2006 (RM)
2,272,824
2,782,241
1,817,947
1,203,976
Profit/(Loss) Before Tax
811,542
1,703,159
985,243
427,336
Profit/(Loss) After Tax
592,400
1,291,634
650,158
332,520
Issued/Paid-up Capital
10,000,000
10,000,000
10,000,000
2,000,000
Shareholders’ Funds
13,812,139
13,969,739
12,678,105
4,027,947
Turnover
11.4
Role of Directors
The Board of Directors is responsible for the overall management of the Manager and its funds. The Board not only
ensures corporate governance is practised but policies and guidelines are adhered to. The Board will sit once every
quarter, or more often should the need arise.
(43811-W)
11.5
45
Board of Directors
YM Raja Dato Mufik Affandi bin Raja Khalid
Raja Dato Mufik Affandi bin Raja Khalid, a Malaysian, was appointed to the Board on 28 September 2000. He holds a
Bachelor of Economics (Hons) Degree from Universiti Malaya and a Master in Public Administration Degree from
Harvard University, USA.
Previously, he has held various senior positions at Bank Negara Malaysia, TAS Industries Sdn Bhd and Cempaka
Finance. He also sits on the Board of Road Builder (M) Holdings Bhd.
Datuk Khatijah binti Ahmad
Datuk Khatijah binti Ahmad, a Malaysian, was appointed to the Board on 28 January 2002. She holds a degree in
Economics (Honours) from the London School of Economics & Political Science, University of London, United
Kingdom.
She is a member/trustee of various non-profit organisations, namely the Malaysian Institute of Economic research
(MIER). She is also the Chairman of the Malaysian Institute of Bond Dealers.
Thariq Usman bin Ahmad, a Malaysian, was appointed to the Board on 7 September 1993. He holds a BA in
Mathematics from St John’s College, Oxford. En Thariq has worked in the financial services industry for 10 years and
in the fund management industry for 8 years. As well as being the Chief Executive Officer, he is also the Investment
Manager of KAF Fund Management Sdn Bhd.
Zulkifli bin Ishak
Zulkifli bin Ishak, a Malaysian, was appointed to the Board on 26 June 1995. Upon graduation, he joined KAF
Discounts Bhd. After several years working experience within the group, he has acquired good experience in managing
fixed income securities. As the General Manager for KAF Discounts Bhd., he was responsible for dealing and managing
an investment portfolio of approximately RM$1.3 billion in money market and capital market instruments, which
consists of Government Treasury Bills, Bank Negara Bills, Commercial Papers, Bankers Acceptance, Negotiable
Certificates of Deposits, Government Bonds, Cagamas Bonds and Corporate Bonds.
Dato' Dr. Norraesah binti Haji Mohamad (Independent)
Dato' Dr. Norraesah Bt. Haji Mohamad, a Malaysian, aged 56, holds a Doctorate Degree in Economics Science
(International Economics and Finance) which she obtained in 1986 from University of Paris 1, Pantheon Sorbonne,
France. She has over 31 years of working experience in banking, consultancy and international trade and commerce.
She worked with the International Trade Division of the Ministry of Trade and Industry (now known as the Ministry of
International Trade and Industry) from 1972 to 1985 and was later transferred to the Finance Division of the Ministry
of Finance holding the post of Principal Assistant Secretary dealing with privatisation and debt management.
In 1988, she joined ESSO Production Malaysia, Inc. as Communications Manager and subsequently, in 1990, took the
position of Managing Director with a consultant firm providing financial advisory services. From 1991 to 1998 she was
appointed as the Chief Representative of Credit Lyonnais Bank in Malaysia. She sits on the board of KESM Industries
Berhad, Malaysian Oxygen Berhad and several private limited companies.
Abdul Rahim bin Dato’ Ismail (Independent)
Abdul Rahim bin Dato’ Ismail, a Malaysian, aged 42, holds a BSc. (Hons) Finance from Armstrong University Berkeley,
California which he obtained in 1987. He also holds an MBA in Finance from Golden Gate University, San Francisco,
California and a LLB (Hons) from Thames Valley University, London, United Kingdom. He has more than 15 years
experience in the banking industry
Previously he has held senior positions in Rakyat Merchant Bankers Berhad and Leader Universal Holdings Berhad.
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46
11.6
Role of the Investment Committee
The Investment Committee formulates, establishes and implements investment strategies and policies. The committee
will continually review and monitor the success of these strategies and policies using predetermined benchmarks
towards achieving a proper performance for the Funds. The Committee will also ensure investment guidelines and
regulations are complied with. The Investment Committee will meet at least once every quarterly or more often should
the need arise.
(Please refer to 11.5)
(Please refer to 11.5)
Chehan Prasana Richard Perera
Chehan Prasanna Richard Perera, a Sri Lankan, was appointed to the Investment Committee on Monday, 24 September
2007. He holds a Bachelor of Arts (Hons) degree from Ithaca College, New York - Majoring in Economics and Minor
in Mathematics. Chehan received his CFA in 1999.
Chehan has worked in equity research for 12-years and management for nine years. He started his career at ABN
AMRO in 1995 covering Malaysia, Singapore, Sri Lanka and Mauritius during his ten years with the Group. He joined
KAF-Seagroatt & Campbell Securities Sdn Bhd in 1995 as Head of Research.
Wong Schuen Siang
Wong Schuen Siang is a Credit Analyst at KAF Investment Bank Berhad. In his role, Mr Wong performs credit analyses
of PDS issues across all sectors and prescribes trading limits for the proprietary books and exercises active monitoring
of KAF’s proprietary fixed income exposures.
Mr. Wong joined KAF Investment Bank Berhad in February 2007. Prior to joining KAF Investment Bank Berhad, Mr
Wong worked in Corporate Finance and Treasury (credit risk analysis) at CIMB Investment Bank Berhad. Mr. Wong
holds an MBA from the National University of Singapore and is a CFA Charter holder.
Aamir Varcie (Independent)
Mr Varcie is currently an independent consultant with Kohlberg Kravis & Co. (KKR), having worked for KKR since
September 2005 as an Associate Director. Prior to this he has held various roles in American International Group and
Tata Sons Ltd in India, as well as Merill Lynch in the UK. His roles have gained him experience in the Life Insurance
business, strategic planning as well as mergers and acquisitions. Mr Varcie also has completed Level II of the Chartered
Financial Analyst programme.
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11.7
47
The Management Team
Thariq Usman Ahmad, Investment Manager. En. Thariq is a licensed fund manager and has been responsible for
managing discretionary equity and fixed income portfolios at KFM since 1997. He focuses mainly on the Malaysian
market and is actively involved in the investment process, covering fundamental research, stock selection and asset
allocation. En. Thariq began his career in the Treasury department of KAF Discounts Berhad before joining KAF Fund
Management Sdn Bhd in 1997. He holds a B.A. in Mathematics from St. John's College, Oxford. En. Thariq was
appointed CEO in 2001. He is also a director of the company and is the designated fund manager for the funds.
Mas Johan Harris, Manager, Investment Products. Mr. Mas Johan is a Chartered Accountant and member of the
Institute of Chartered Accountants Australia. He also holds a Bachelor of Business (Accounting) degree from the
University of Technology, Sydney. Having previously worked for AMP and Royal and SunAlliance in Sydney and
Barclays in London, he has more than 7 years experience in the Funds Management industry. His previous areas of
experience include Investment Accounting, Investment Operations and Product Development, having developed and
successfully launched several investment products overseas. Mr. Mas Johan joined the group in June 2004.
Zulkifli bin Ishak, Director – Sales. En Zulkifli has worked previously as the General Manager for KAF Discounts Bhd.,
he was responsible for dealing and managing an investment portfolio of approximately RM$1.3 billion in money market
and capital market instruments, which consists of Government Treasury Bills, Bank Negara Bills, Commercial Papers,
Bankers Acceptance, Negotiable Certificates of Deposits, Government Bonds, Cagamas Bonds and Corporate Bonds.
Zulkifli Mawardi, Investment Manager. En Zulkifli is a licensed fund manage with 12 years of experience in fund
management industry. He has had training and delivered in such areas as fundamental research, investment strategy,
stock selection and portfolio management, and has had exposure in both local and regional markets. He has previously
managed equity portfolios for both institutional and private clients, as well as local unit trust funds. His previous
employment includes CIMB Private Banking and ECM-Libra Avenue, where his performance was rated and had won
him Standard & Poor awards. En Zulkifli holds a B.Sc in Statistics from the University of Illinois at Urbana-Champaign.
Zakiah Mohamad, Assistant Manager. Ms Zakiah has over 11 years experience in the unit trust management industry,
specifically in the day-to-day operations. She joined the industry in 1994 with Public Mutual Berhad (formerly known
as Kuala Lumpur Mutual Fund Berhad) before joining RHB Unit Trust Management Berhad as an Operation Executive.
She holds a Diploma in Accountancy from MARA Institute of Technology (now known as University Technology
MARA -UiTM). Ms Zakiah joined the KAF Group in April 2006.
11.8
Manager’s Delegate
The Manager has appointed HSBC Trustee (Malaysia) Berhad to carry out the fund accounting and fund valuation
functions for the Funds. The Managers’ delegate is responsible for keeping proper records of all transactions of the Fund
and also to carry out valuations on the Funds every Business Day. It is the duty of the Managers’ delegate to perform all
its functions in accordance to the Service Agreement and the Deed. A brief description on the background of the
delegate is set out in section 12 hereafter.
11.9
Material Litigation
As at 3 November 2009, the Manager is not engaged in any material litigation and arbitration, including those pending
or threatened, and any facts likely to give rise to any proceedings which might materially affect the business/financial
position of the Manager and any of its delegates.
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48
12.
THE TRUSTEE
The Trustee is HSBC (Malaysia) Trustee Berhad (Company No. 1281-T), a company incorporated in Malaysia since
1937 and registered as a trust company under the Trust Companies Act 1949, with its registered address at Suite 901,
9th Floor, Wisma Hamzah-Kwong Hing, No.1 Leboh Ampang, 50100 Kuala Lumpur. The Trustee is a member of the
HSBC Holdings Plc. group of companies and forms part of the global network of trust companies within HSBC
Holdings Plc.
12.1
Financial Position
The Trustee has a paid-up capital of RM500,000.00. As at 31 December 2007, its shareholders’ funds totaled RM6.60
million and it achieved a profit before tax of RM9.16 million.
The following is a summary of the past performance of the Trustee based on audited accounts for the last 3 years:
Year Ended 31 December
Paid-up Share Capital
Shareholders’ Funds
Turnover
Profit before Tax
Profit after Tax
12.2
2006 (RM)
2007 (RM)
2008 (RM)
Unaudited
financial period
ended 30 June
2009 (RM)
500,000
500,000
500,000
500,000
5,196,456
12,704,612
6,167,355
4,706,595
6,598,539
16,911,088
9,164,852
6,442,083
10,748,090
9,085,924
5,607,501
4,149,551
18,064,086
8,446,968
4,947,961
3,710,970
Experience in Trustee Business
Since 1993, the Trustee has acquired experience in the administration of unit trusts and as at 3 November 2009 is the
Trustee for 187 unit trust funds (including 2 Exchange Traded Funds and 6 Wholesale Funds).
As at 3 November 2009, the Trustee has a workforce of 46 employees consisting of 31 executives and 15
non-executives. A good number of the staff has been with the Trustee for many years. This element of continuity
reflects an intrinsic characteristic of trust services. The Trustee also believes in building team and talents by recruiting
new members with relevant experiences to replace the long serving retired colleagues.
Each client’s account is under the supervision of a trust officer who is able to focus his personal attention on the
administration of the account and reports directly to his manager.
The Trustee also has a Compliance Section whose responsibilities is to ensure that the Trustee’s business is carried on in
accordance with all relevant laws, codes, rules and standards of good market practice.
12.3
Board of Directors
Mr Jonathan William Addis
Ms Lim Liang Hua
Dato’ Ranita Mohd Hussein
Ms Zainon Baba
Mr Alastair E Murray
Mr Tay Shik Heng
Mr Tay Swee Gim (Alternate to Ms Lim Liang Hua)
Ms Hew Su Chan (Alternate to Mr Tay Shik Heng)
Ms Wong Su Kuin (Alternate to Mr Alastair E Murray)
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12.4
49
Profile of Key Personnel
Ms Lim Liang Hua – Managing Director
She joined HSBC (Malaysia) Trustee Berhad in April 2004 and brings with her over 20 years of legal advisory and
problem solving skills in the banking and financial services industry. She holds a Bachelor of Economics and Bachelor of
Laws (LLB) from Monash University, Australia. She was admitted to practice as a Barrister & Solicitor in Victoria,
Australia in 1984 and was called to the Malaysian Bar in 1985. She was in private practice for three years in the Klang
Valley before joining the corporate sector, namely the banking and financial institutions industry. She was the Chief
Legal Adviser and Company Secretary for the Phileo Allied Bank Group and the United Overseas Bank Group in
Malaysia. Prior to her joining HSBC, she was Chief Executive Officer in an established trust company.
Mr Yee Yit Seeng – Chief Operating Officer
He joined HSBC (Malaysia) Trustee Berhad in July 1984. He holds a Diploma in Banking and Finance and is a Senior
Associate of Institut Bank-Bank Malaysia. He has more than 22 years of experience in trust operations including client
service, systems/projects & office administration, compliance, internal control & audit, and business development. He
was also seconded to the HSBC Back-end Processing Office in Cyberjaya, Malaysia to support the global securities
operations.
Puan Maziah Yong – Co-Head, Unit Trust
She joined HSBC (Malaysia) Trustee Berhad in November 2007. She holds an Advanced Diploma In Law from Institut
Teknologi MARA. Prior to her joining HSBC, she has more than 15 years working experience in trust administration,
especially relating to unit trust schemes.
Ms Lim Gim Lee – Head, Fund Administration
She joined HSBC (Malaysia) Trustee Berhad in December 2008. She holds an Advanced Diploma in Business
Administration - Institute of Business Administration and Management (IBAM). She was one of the pioneer staff in
setting up two unit trust management companies and has more than 13 years working experience in the unit trust
industry.
Ms Leong Li Yim – Head, Business Support
She joined HSBC (Malaysia) Trustee Berhad in December 2007. She holds a Diploma in Banking and Finance of Institut
Bank-Bank Malaysia and a Diploma in Business Management from The Association of Business Executives. She has
more than 17 years experience in securities industry, including overseeing the settlement operations for foreign
institutional clients, retail clients margin financing, systems implementation and being the liaison party with regulatory
bodies, like Bursa Malaysia. Prior to her joining HSBC Trustee, she was Head of Settlement, HSBC Securities Services
in Malaysia.
Ms Lau Sook Yee – Head, Compliance, Control and Audit
She joined HSBC (Malaysia) Trustee Berhad in September 2005. She has more than 20 years experience in banking and
treasury operations in both merchant and commercial banks.
Ms Janice Chang Hui Ching – Head, Corporate Trust
She joined HSBC (Malaysia) Trustee Berhad in November 2004. She holds a Bachelor of Business majoring in
Economics & Finance from RMIT University, Australia. Prior to her joining HSBC, she has more than 7 years
experience in Unit Trust Schemes and Corporate Bonds/Private Debt Securities in an established trust company.
Mr Yap Fook Meng – Head, System & Admin
He joined HSBC (Malaysia) Trustee Berhad in August 2007. He holds a Diploma in Banking and Finance and is a
Senior Associate of Institut Bank-Bank Malaysia. He has more than 25 years experience in banking operations,
including systems implementation and support with HSBC Bank Malaysia Berhad. Besides local banking experience, he
had been seconded to other HSBC Group offices in United Kingdom and Brazil for systems implementation and
support.
Ms Lim Gim Lee – Head, Fund Administration
She joined HSBC (Malaysia) Trustee Berhad in December 2008. She holds an Advanced Diploma in Business
Administration - Institute of Business Administration and Management (IBAM). She was one of the pioneer staff in
setting up two unit trust management companies and has more than 13 years working experience in the unit trust
industry.
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50
12.5
Duties and Responsibilities of the Trustee
The Trustee’s main functions are to act as trustee and custodian of the assets of the Fund and to safeguard the interests
of Unit Holders of the Fund. In performing these functions, the Trustee has to exercise all due care and diligence and is
required to act in accordance with the provisions of the Deed, Capital Markets and Services Act 2007 and the
Securities Commission’s Guidelines on Unit Trust Funds. Apart from being the legal owner of the Fund’s assets, the
Trustee is also responsible for ensuring that the Manager performs its duties and obligations in accordance with the
provisions of the Deed, Capital Markets and Services Act 2007 and the Guidelines.
12.6
Retirement or Removal or Replacement of the Trustee
The Trustee may retire upon giving three (3) months’ notice to the Manager of its desire to do so, or such shorter
period as the Manager and the Trustee may agree, and may by Deed appoint in its stead or as an additional trustee a
new trustee approved by the relevant authorities and under any relevant law.
The Trustee may be removed and another trustee may be appointed by Special Resolution of the Unit Holders at a duly
convened meeting of which notice has been given to the Unit Holders in accordance with the Deed.
12.7
Power of Trustee to Remove, Retire or Replace the Manager
The Manager may be removed by the Trustee on the grounds that the Manager:
(a) the Manager has gone into liquidation, except for the purpose of amalgamation or reconstruction or some similar
purpose; or has had a receiver appointed; or has ceased to carry on business; or is in breach of any of its obligations
or duties under the Deed or the relevant laws; or has ceased to be eligible to be a management company under the
relevant laws;
or
(b) the Manager has failed or neglected to carry out its duties to the satisfaction of the Trustee and the Trustee
considers that it would be in the interests of Unit Holders for it to do so after the Trustee has given notice to it of
that opinion and the reasons for that opinion, and has considered any representations made by the Manager in
respect of that opinion, and after consultation with the relevant authorities and with the approval of the Unit
Holders by way of a Special Resolution.
In any of the above said grounds, the Manager shall upon receipt of a written notice from the Trustee ipso facto cease
to be the management company of the Fund. The Trustee shall, at the same time, by writing appoint some other
corporation approved by the relevant authorities to be the management company of the Fund; such corporation shall
have entered into such deed or deeds as the Trustee may consider to be necessary or desirable to secure the due
performance of its duties as management company for the Fund.
12.8
Material Litigation
As at 3 November 2008, the Trustee is not engaged in any material litigation and arbitration, including those pending
or threatened, and is not aware of any facts likely to give rise to any proceedings which might materially affect the
business/financial position of the Trustee and any of its delegates.
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12.9
51
Trustee’s Delegate
The Trustee has appointed The Hongkong And Shanghai Banking Corporation Ltd as custodian of the quoted and
unquoted local investments of the Fund. The assets of the Fund are held through their nominee company, HSBC
Nominees (Tempatan) Sdn Bhd. If and when the Fund should invest overseas, HSBC Institutional Trust Services (Asia)
Limited will be appointed as the custodian of the foreign assets of the Fund. Both The Hongkong And Shanghai
Banking Corporation Ltd and HSBC Institutional Trust Services (Asia) Limited are wholly owned subsidiaries of HSBC
Holdings Plc, the holding company of the HSBC Group. The custodian’s comprehensive custody and clearing services
cover traditional settlement processing and safekeeping as well as corporate related services including cash and security
reporting, income collection and corporate events processing. All investments are automatically registered into the
name of the Fund. The custodian acts only in accordance with instructions from the Trustee.
Trustee’s Delegates
1)
The Hongkong And Shanghai Banking Corporation Limited (As Custodian) and assets held through HSBC
Nominees (Tempatan) Sdn Bhd (Co. No. 258854-D)
No 2 Leboh Ampang
50100 Kuala Lumpur
Telephone No: (603)20700744
Fax No: (603)20729787
2)
HSBC Institutional Trust Services (Asia) Limited
6th Floor, Tower One
HSBC Centre
No 1 Sham Mong Road
Kowloon, Hong Kong
Telephone No: (852)25336333
Fax No: (852)28696120
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52
13.
SALIENT TERMS OF THE DEEDS
13.1
RIGHTS AND LIABILITIES AS A UNIT HOLDER
13.1.1
Rights of Unit Holders
As a Unit Holder of the Fund, and subject to the provisions of the Deed, you have the right:
1) to receive distributions, if any, of the Fund;
2) to participate in any increase in the NAV of Units of the Fund;
3) to call for Unit Holders’ Meetings and to vote for the removal of the Trustee or the Manager through a special
resolution;
4) to exercise the cooling-off right (only for qualified investors);
5) to receive annual and interim reports on the Fund; and
6) to exercise such other rights and privileges as provided for in the Deed.
However, a Unit Holder would not have the right to require the transfer to the Unit Holder of any of the investments
of the Fund. Neither would a Unit Holder have the right to interfere with or to question the exercise by the Trustee (or
the Manager on the Trustee’s behalf) of the rights of the Trustee as trustee of the investments of the Fund.
13.1.2
Liabilities of Unit Holders
As a Unit Holder of the Fund, and subject to the provisions of the Deed, your liabilities would be limited to the
following:
1) A Unit Holder would not be liable for nor would a Unit Holder be required to pay any amount in addition to the
payment for Units of the Fund as set out in this Prospectus and the Deed.
2) A Unit Holder would not be liable to indemnify the Trustee and/or the Manager in the event that the liabilities
incurred by the Trustee and/or the Manager on behalf of the Fund exceed the NAV of the Fund.
Note:
13.2
Please be advised that if a Unit Holder invests in Units through an IUTA which adopts the nominee system
of ownership, the Unit Holder would not be considered to be a Unit Holder under the Deed and the Unit
Holder may consequently not have all the rights ordinarily exercisable by a Unit Holder (for example, the
right to call for a Unit Holders’ Meeting and to vote thereat and the right to have the Unit Holder’s
particulars appearing in the register of Unit Holders of the Fund).
MAXIMUM FEES AND CHARGES PERMITTED
The maximum rate of direct fees and charges allowable by the Deed are as follows:-.
Fund
Maximum Sales Charge
Maximum Repurchase Charge
KAF Jade Fund
10% of the Net Asset Value per Unit
KAF Bond Fund
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53
The maximum rate of indirect fees and charges allowable by the Deed are as follows:Fund
Maximum Annual Management Fee
Maximum Annual Trustee Fee
KAF Jade Fund
2% of the Net Asset Value of the Fund
0.2% of the Net Asset Value of the
Fund subject to a minimum of RM18,000
per annum (excluding foreign
custodian fees and charges)
KAF Bond Fund
1.5% of the Net Asset Value of the Fund
1.5% of the Net Asset Value of the Fund
13.3
PROCEDURES TO INCREASE THE DIRECT AND INDIRECT FEES AND CHARGES
13.3.1
Sales Charge
The Manager may not charge a Sales Charge at a rate higher than that disclosed in a prospectus unless:
(a) the Manager has notified the Trustee in writing of the higher rate and the date on which such higher rate is to
become effective;
(b) a supplemental prospectus stating the higher rate is issued thereafter; and
(c) such time as may be prescribed by any relevant law shall have elapsed since the supplemental prospectus is issued.
13.3.2
Repurchase Fee
The Manager may not charge a Repurchase Fee at a rate higher than that disclosed in a prospectus unless:
(a) the Manager has notified the Trustee in writing of the higher rate and the date on which such higher rate is to
become effective;
(b) a supplemental prospectus stating the higher rate is issued thereafter; and
(c) such time as may be prescribed by any relevant law shall have elapsed since the supplemental prospectus is issued.
13.3.3
Annual Management Fee
The Manager does not intend to impose an Annual Management Fee however should at a rate higher than that
disclosed in a prospectus unless:
(a) the Manager has come to an agreement with the Trustee on the higher rate;
(b) the Manager has notified the Unit Holders of the higher rate and the date on which such higher rate is to become
effective;
(c) a supplemental prospectus stating the higher rate is issued thereafter; and
(d) such time as may be prescribed by any relevant law shall have elapsed since the supplemental prospectus is issued.
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54
13.3.4
Annual Trustee Fee
The Trustee may not charge an Annual Trustee Fee at a rate higher than that disclosed in a Prospectus unless:
(a) the Manager has come to an agreement with the Trustee on the higher rate;
(b) the Manager has notified the Unit Holders of the higher rate and the date on which such higher rate is to become
effective;
(c) a supplemental prospectus stating the higher rate is issued thereafter; and
(d) such time as may be prescribed by any relevant law shall have elapsed since the supplemental prospectus is issued.
13.4
PERMITTED EXPENSES
Only the expenses (or part thereof) which are directly related and necessary in operating and administering the Fund
may be charged to the Fund. These would include (but are not limited to) the following:
(a) commissions/fees paid to brokers in effecting dealings in the investments of the Fund, shown on the contract notes
or confirmation notes;
(b) taxes and other duties charged on the Fund by the Government and/or other authorities;
(c) costs, fees and expenses properly incurred by the Auditor;
(d) costs, fees and expenses incurred for the valuation of any investment of the Fund by independent valuers for the
benefit of the Fund;
(e) costs, fees and expenses incurred for any modification of this Deed save where such modification is for the benefit
of the Manager and/or the Trustee;
(f) costs, fees and expenses incurred for any meeting of the Unit Holders save where such meeting is convened for the
benefit of the Manager and/or the Trustee;
(g) costs, commissions, fees and expenses of the sale, purchase, insurance and any other dealing of any asset of the Fund;
(h) costs, fees and expenses incurred in engaging any specialist approved by the Trustee for investigating or evaluating
any proposed investment of the Fund;
(i) costs, fees and expenses incurred in engaging any valuer, adviser or contractor for the benefit of the Fund;
(j) (costs, fees and expenses incurred in the preparation and audit of the taxation, returns and accounts of the Fund;
(k) costs, fees and expenses incurred in the termination of the Fund or the removal of the Trustee or the Manager and
the appointment of a new trustee or management company;
(l) costs, fees and expenses incurred in relation to any arbitration or other proceedings concerning the Fund or any
asset of the Fund, including proceedings against the Trustee or the Manager by the other for the benefit of the
Fund (save to the extent that legal costs incurred for the defence of either of them are not ordered by the court to
be reimbursed by the Fund);
(m) remuneration and out of pocket expenses of the independent members of the Investment Committee of the Fund,
unless the Manager decides otherwise;
(n) costs, fees and expenses deemed by the Manager to have been incurred in connection with any change or the need
to comply with any change or introduction of any law, regulation or requirement (whether or not having the force
of law) of any governmental or regulatory authority; and
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55
(o) (where the custodial function is delegated by the Trustee) charges and fees paid to sub-custodians.
13.5
THE MANAGER’S RIGHT TO RETIRE
The Manager has the power to retire in favour of some other corporation by giving to the Trustee three (3) months'
notice in writing of the Manager’s desire so to do, or such other period as the Trustee and the Manager may agree upon,
and subject to the fulfilment of the following conditions:
13.6
•
the retiring Manager shall appoint such corporation by writing under its seal as the management company of the
Fund in its stead and assign and transfer to such corporation all its rights and duties as management company of the
Fund;
•
such corporation shall enter into such deed or deeds as the Trustee may consider to be necessary or desirable to
secure the due performance of its duties as management company for the Fund;
•
upon the payment to the Trustee of all sums due from the retiring Manager to the Trustee at the date of such
retirement, the retiring Manager shall be absolved and released from all further obligations hereunder provided
always that any release so provided for and given shall not extend to any of the retiring Manager’s antecedent
neglect by or act or default but without prejudice to the rights of the Trustee or any Unit Holder or other person in
respect of any act or omission on the retiring Manager’s part prior to such retirement and the new management
company may and shall thereafter exercise all the powers and enjoy all the rights and shall be subject to all the
duties and obligations as fully as though such new management company had been originally a party to the Deed;
THE MANAGER’S POWERS TO REMOVE / REPLACE TRUSTEE
The Manager acts on the Unit Holders’ behalf and in the Unit Holders’ interests in consultation with the Trustee and
the relevant authorities and/or with the Unit Holders’ approval.
The Manager is obliged to give the Unit Holders notice in writing to consider the removal of the Trustee if the Trustee
fails or neglects to carry out its duties as stipulated in the Deed and under the Act. The Manager shall take all
reasonable steps to replace the Trustee as soon as practicable after becoming aware that:
•
the Trustee has ceased to exist;
•
the Trustee has not been validly appointed;
•
the Trustee is not eligible to be appointed or act as a trustee under the Act;
•
the Trustee has failed or refused to act as Trustee in accordance with the provisions and covenants of the Deed and
the provisions of the Act;
•
a receiver is appointed over the whole or substantial part of the assets or undertaking of the Trustee and has not
ceased to act under the appointment,
•
a petition is presented for the winding up of the Trustee (other than for the purpose of and followed by a
reconstruction, unless during or following such reconstruction the Trustee becomes or is declared to be insolvent);
or
•
the Trustee is under investigation for conduct that contravenes the Trust Companies Act 1949, the Trustee Act
1949, the Companies Act 1965 or any securities law
The Trustee may be removed and another trustee may be appointed by special resolution of the Unit Holders at a duly
convened meeting of which notice has been given to the Unit Holders in accordance with the Deed.
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57
(a) sell all the assets of the Fund then remaining in its hands and pay out of the Fund any liabilities of the Fund; such
sale and payment shall be carried out and completed in such manner and within such period as the Trustee
considers to be in the best interests of the Unit Holders; and
(b) from time to time distribute to the Unit Holders, in proportion to the number of units held by them respectively:
i)
the net cash proceeds available for the purpose of such distribution and derived from the sale of the investments
and assets of the Fund less any payments for liabilities of the Fund; and
ii) any available Cash Produce;
provided always that the Trustee shall not be bound, except in the case of final distribution, to distribute any of the
moneys for the time being in his hands the amount of which is insufficient for payment to the Unit Holders of Fifty
(50) sen in respect of each unit and provided also that the Trustee shall be entitled to retain out of any such moneys in
his hands full provision for all costs, charges, taxes, expenses, claims and demands incurred, made or anticipated by the
Trustee in connection with or arising out of the winding-up of the Fund and, out of the moneys so retained, to be
indemnified against any such costs, charges, taxes, expenses, claims and demands; each such distribution shall be made
only against the production of such evidence as the Trustee may require of the title of the Unit Holder relating to the
Units in respect of which the distribution is made.
In the event of the Fund is terminated, the Trustee shall be at liberty to call upon the Manager to grant the Trustee, and
the Manager shall so grant, a full and complete release from this Deed and the Manager shall indemnify the Trustee
against any claims arising out of the Trustee's execution of the Deed provided always that such claims have not been
caused by any failure on the part of the Trustee to exercise the degree of care and diligence required of a trustee as
contemplated by this Deed and all relevant laws.
The Trustee shall, as soon as it becomes aware that the Fund is to be terminated and wound-up, inform the relevant
authorities of the same.
Where the termination of the Fund and the winding-up of the Fund has been occasioned by any of the events set out
herein;
(a) if the Manager has gone into liquidation, except for the purpose of reconstruction or amalgamation upon terms
previously approved in writing by the Trustee and the relevant authorities;
(b) if, in the opinion of the Trustee, the Manager has ceased to carry on business; or
(c) if, in the opinion of the Trustee, the Manager has to the prejudice of Unit Holders failed to comply with the
provisions of the Deed or contravened any of the provisions of any relevant law;
the Trustee shall summon for a Unit Holders meeting to get directions from the Unit Holders and also arrange for a
final review and audit of the final accounts of the Fund by the Auditor of the Fund; in all other cases of termination of
the trust and winding-up of the Fund, such final review and audit by the Auditor of the Fund shall be arranged by the
Manager.
13.10
MEETINGS OF UNIT HOLDERS
The Deed provides that the Trustee, Unit Holders or the Manager, as the Manager may convene Unit Holders’
Meetings. A resolution of Unit Holders may be required pursuant to the Deed for specific purposes, e.g. making certain
amendments to the Deed, increasing the fees payable to the Trustee and the Manager, or removing the Trustee or the
Manager.
(43811-W)
58
13.11
QUORUM REQUIRED FOR CONVENING A UNIT HOLDERS MEETING
The quorum required for a meeting of the Unit Holders shall be five (5) Unit Holders, whether present in person or by
proxy, provided always that the quorum for a meeting of the Unit Holders convened for the purpose of voting on a
special resolution shall be five (5) Unit Holders, whether present in person or by proxy, who must hold in aggregate at
least twenty five per centum (25%) of the Units in circulation at the time of the meeting, and provided further that if
the Fund has five (5) or less Unit Holders, the quorum required for a meeting of the Unit Holders of the Fund shall be
two (2) Unit Holders, whether present in person or by proxy; if the meeting has been convened for the purpose of
removing the Manager and/or the Trustee, the Unit Holders present in person or by proxy must hold in aggregate at
least twenty five per centum (25%) of the Units in circulation at the time of the meeting.
13.12
UNIT HOLDERS MEETING CONVENED BY UNIT HOLDERS
Unless otherwise required or allowed by the relevant laws, the Manager shall, within twenty-one (21) days of receiving
an application from not less than fifty (50) or one-tenth (1/10) of all the Unit Holders, whichever is less, summon a
meeting of the Unit Holders by:
(a) sending by post at least seven (7) days before the date of the proposed meeting a notice of the proposed meeting to
all the Unit Holders; and
(b) publishing at least fourteen (14) days before the date of the proposed meeting an advertisement giving notice of the
proposed meeting in a national language newspaper published daily and another newspaper approved by the
relevant authorities.
(c) specifying in the notice the place and time of the meeting and the terms of the resolutions to be proposed at the
meeting.
The Unit Holders may apply to the Manager to summon a meeting for any purpose including, without limitation, for
the purpose of:
(a) requiring the retirement or removal of the Manager;
(b) requiring the retirement or removal of the Trustee;
(c) considering the most recent financial statements of the Fund; or
(d) giving to the Trustee such directions as the meeting thinks proper;
provided always that the Manager shall not be obliged to summon such a meeting unless application has been received
from not less than fifty (50) or one-tenth (1/10) of all the Unit Holders, whichever is the lesser number.
13.13
UNIT HOLDERS MEETING CONVENED BY MANAGER OR TRUSTEE
The Manager or Trustee may convene a Unit Holders’ meeting by giving Unit Holders written notice in the manner
prescribed by the Deed or the relevant laws.
(43811-W)
14.
59
CONFLICT OF INTEREST
Manager
The Manager is not aware of any existing and/or proposed related party transactions or conflict of interest situations
involving the Funds.
The Manager has in place policies and procedures to deal with any conflict of interest situations. In making an
investment transaction for the Funds, the Manager will not make improper use of its position in managing the Funds to
gain, directly or indirectly, any advantage or to cause detriment to the interests of Unit Holders. Where Directors or
the Investment Committee members’ interests may conflict with that of the Funds, they are to refrain from participating
in the decision-making process relating to the matter. Staffs are required to seek prior approval from the Compliance
Officer before dealing in any form of securities. All transactions with related parties are to be executed on terms which
are best available to the Funds and which are not less favourable to the Funds than an arms-length transaction between
independent parties.
Trustee
As HSBC (Malaysia) Trustee Berhad is the Trustee for the Funds, there may be proposed related party transactions
involving or in connection with the Funds in the following events:
(1)
where the Funds invest in instrument(s) offered by the HSBC Group (e.g. placement of monies, structured
products, etc);
(2)
where the Funds are being distributed by the HSBC Group as IUTA;
(3)
where the assets of the Funds are being custodised by the HSBC Group both as sub-custodian and global
custodian of the Fund (i.e. Trustee’s delegate); and
(4)
where the Funds obtain financing as permitted under the Guidelines, from the HSBC Group.
The Trustee has in place policies and procedures to deal with any conflict of interest situation. The Trustee will not
make improper use of its position as the owner of the Funds’ assets to gain, directly or indirectly, any advantage or cause
detriment to the interests of Unit Holders. Any related party transaction is to be made on terms which are best
available to the Funds and which are not less favourable to the Funds than an arms-length transaction between
independent parties.
(43811-W)
60
15.
APPROVALS AND CONDITIONS
Sub-paragraph 2.0(2) of Schedule C Appendix I to the Guidelines 3rd Edition issued on 1 April 2003 and updated
on 30 September 2003
The above restriction says that “the value of the fund’s holding in the securities/instruments of, and the
securities/instruments relating to, any single issuer must not exceed 15% of the fund’s NAV”. As the KJF will be
investing more than 15% of its NAV in a collective investment scheme (i.e. the Credit Agricole Greater China Fund),
the Manager has sought an exemption and variation from the Guidelines. The SC has on 30 May 2006 allowed the
Manager to invest 30% of its NAV into the collective investment scheme.
(43811-W)
16.
61
TAXATION OF THE FUNDS
The Board of Trustee/Directors
No.3 Jalan Conlay
50450 Kuala Lumpur
4 November 2009
Dear Sirs
Re: Taxation of the Fund and Unit Holders
This letter has been prepared for inclusion in the Prospectus in connection with the registration of the KAF Money
Market Fund, the KAF Jade Fund, and the KAF Bond Fund (“the Funds”):Taxation of the Fund
The Funds are treated as a unit trust for Malaysian tax purposes. The taxation of the Funds are therefore governed
principally by Sections 61 and 63B of the Malaysian Income Tax Act, 1967 (“the Act”).
Subject to certain exemptions, the income of the Funds in respect of investment income derived from or accruing in
Malaysia after deducting tax allowable expenses, is liable to Malaysian corporate income tax at the rate of 25% for Year
of Assessment (“YA”) 2009 and subsequent years of assessment. Investment income derived from sources outside
Malaysia and received in Malaysia is exempt from Malaysian income tax. However, such income may be subject to tax
in the country from which it is derived.
Capital gains from the realisation of investments (whether local or foreign) by the Funds will not be subject to income
tax.
With effect from YA 2008, the single-tier company income tax system (“single-tier system”) replaced the previous
dividend imputation system. Under the previous dividend imputation system, generally taxable Malaysian dividend
income received by the Funds would have suffered a tax deduction at source. Such tax deducted would generally be
available for set-off either wholly or partly against the tax liability of the Funds under the dividend imputation system.
Any excess over the tax liability would generally be refundable to the Funds. Under the single tier system, dividend
income (which is paid or credited under the single-tier system) received by the Funds will be exempted, and there will
be no tax deducted at source available to the Funds in respect of such dividend income. Saving and transitional
provisions apply during the period from 1 January 2008 to 31 December 2013.
During such transitional period, the Funds may receive dividends which are paid under the dividend imputation system
and/or dividends which are paid or credited under the single-tier system. During the transitional period, only dividends
(which are paid under the dividend imputation system) paid in the form of cash on ordinary shares (held continuously
for 90 days or more, but the 90 days condition does not apply to dividends received from shares in public listed
companies) would be entitled to the tax deducted at source. The tax deducted at source will be available for set-off
either wholly or partly against the tax liability of the Funds. Other non-ordinary shares dividends received by the Funds
would be exempted from tax.
Interest income earned by the Funds from the following are exempt from tax:•
any savings certificates issued by the Government of Malaysia; or
•
securities or bonds issued or guaranteed by the Government of Malaysia; or
(43811-W)
62
•
debentures (or Islamic Securities, as proposed during the 2010 Budget tabled in the Parliament on 23 October
2009) (yet to be gazetted), other than convertible loan stock, approved by the Securities Commission; or
•
Bon Simpanan Malaysia issued by the Central Bank of Malaysia; or
•
bonds or securities issued by Pengurusan Danaharta Nasional Berhad; or
•
bonds, other than convertible loan stock, issued by any company listed in Malaysia Exchange of Securities Dealing
and Automated Quotation Berhad; or
•
A bank or financial institution licensed under the Banking and Financial Institution Act 1989 or Islamic Banking Act
1983.
•
Islamic securities (including sukuks) originating from Malaysia, other than convertible loan stock, issued in any
currency other than Ringgit and approved by the Securities Commission (or Labuan Offshore Financial Services
Authority as proposed during the 2010 Budget tabled in the Parliament on 23 Octoberf009) (yet to be gazetted).
Any income received by the Funds from Sukuk Issue which has been issued by the Malaysia Global Sukuk Inc will be
exempt from tax.
Discount or profit received by the Funds from sale of bonds or securities issued by Pengurusan Danaharta Nasional
Berhad or Danaharta Urus Sendirian Berhad is exempt from tax.
Discounts earned by the Funds from the following are also exempt from tax:•
securities or bonds issued or guaranteed by the Government; or
•
debentures (or Islamic Securities, as proposed during the 2010 Budget tabled in the Parliament on 23 October
2009) (yet to be gazetted), other than convertible loan stock, approved by the Securities Commission; or
•
Bon Simpanan Malaysia issued by the Central Bank of Malaysia.
Under the dividend imputation system, deduction in respect of the Funds’ expenses such as manager’s remuneration,
maintenance or register of shareholders, share registration expenses, secretarial, audit and accounting fees, telephone
charges, printing and stationery costs and postage are generally allowed based on a prescribed formula subject to a
minimum of 10 percent and a maximum of 25 percent of the total of these expenses. Under the single0tier system,
expenses incurred by the Funds in relation to dividend income (which is paid or credited under the single-tier system)
are disregarded. Saving and transitional provisions apply during the period from 1 January 2008 to 31 December 2013.
Taxation of Unit Holders
Unit holders are taxed on an amount equivalent to their share of total taxable income of the Funds, to the extent that
this is distributed to them. The income distribution from the Funds may carry with it applicable tax credits
proportionate to each unit holder’s share of the total taxable income in respect of the tax paid by the Funds. Unit
holders will be entitled to utilise the tax credit as a set off against the tax payable by them. Any excess over their tax
liability will be refunded to the unit holders. No other withholding tax will be imposed on the income distribution of
the Funds.
Corporate unit holders, resident or non resident in Malaysia, would be taxed at the corporate tax rate of 25% for YA
2009 and subsequent years of assessment, on distributions of income from the Funds to the extent of an amount
equivalent to their share of the total taxable income of the Funds. Corporate unit holders whose paid-up capital in the
form of ordinary shares does not exceed RM2.5 million will be subject to a tax rate of 20% on chargeable income of up
to RM500,000. For chargeable income in excess of RM500,000, the tax rate of 25% for YA 2009 and subsequent years
of assessment, will still apply. However, with effect from YA 2009 the said tax rate of 20% on chargeable income of up
to RM500,000 will not apply if more than 50% of the paid up capital in respect of ordinary shares of the company is
directly or indirectly owned by a holding company which has a paid up capital exceeding RM2.5 million in respect of
ordinary shares, or vice versa, or more than.50% of the paid up capital in respect of ordinary shares of both companies
are directly or indirectly owned by another company.
(43811-W)
63
Individuals and other non-corporate unit holders who are resident in Malaysia will be subject to income tax at scale
rates. The prevailing scale rates range from 1% to 27% with effect from YA 2009. It was proposed during the 2010
Budget tabled in the Parliament on 23 October 2009, that amongst other things, the top marginal tax rate of 27% be
reduced by 1 % to 26% with effect from YA 2010 (yet to be gazetted).
Individuals and other non-corporate unit holders who are not resident in Malaysia for tax purposes, will be subject to
Malaysian income tax (the prevailing rate is 27%). It was proposed during the 2010 Budget tabled in the Parliament on
23 October 2009, that amongst other things, the top marginal tax rate of 27% be reduced by 1% to 26% with effect
from YA 2010 (yet to be gazetted). Non resident unit holders may also be subject to tax in their respective jurisdictions
and depending on the provisions of the relevant tax legislation and any double tax treaties with Malaysia, the Malaysian
tax suffered may be creditable in the foreign tax jurisdictions.
The distribution of single-tier dividends and other tax exempt tax income by the Funds will be exempted from tax in
the hands of the unit holders in Malaysia. Distribution of foreign income will also be exempted from tax in the hands of
the unit holders.
Unit split by the Funds will be exempted from tax in Malaysia in the hands of the unit holders.
Any gains realised by the unit holders (other than financial institutions, insurance companies and those dealing in
securities) from the transfers or redemptions of the units are treated as capital gains which are not subject to income tax
in Malaysia. However, certain unit holders may be subject to income tax in Malaysia on such gains, due to specific
circumstances of the unit holders.
The tax position is based on the Malaysian tax laws and provisions as they stand as at present. All prospective investors
should not treat the contents of this letter as advice relating to taxation matters and are advised to consult their own
professional advisers concerning their respective investments.
(43811-W)
64
17.
CONSENTS
The Trustee, the Auditors, the Tax Advisers and the Solicitors have given their consent to the inclusion of their names
in the form and context in which such names appear in this Master Prospectus and have not withdrawn such consent
prior to the lodgement of a copy of this Master Prospectus for registration.
The Tax Advisers have given their consent to the inclusion of the Tax Advisers’ letter on Taxation of the Funds and Unit
Holders in the form and context in which it appears in this Master Prospectus and have not withdrawn such consent
prior to the lodgement of a copy of this Master Prospectus for registration.
(43811-W)
18.
65
DOCUMENTS AVAILABLE FOR INSPECTION
Unit Holders may inspect without charge, at the registered offices of the Manager and the Trustee, for a period of not
less than 12 months from the date of this Master Prospectus, the following documents or copies thereof, where
applicable:
(a)
The deed and supplemental deed of the Fund.
(b) Each material contract or document referred to in the Master Prospectus.
(c) All reports, letters or other documents, valuations and statements by any expert, any part of which is extracted or
referred to in the Master Prospectus.
(d) Latest audited accounts of the Manager and the Fund for the current financial year (where applicable).
(e) The audited accounts of the Manager for the current financial year (where applicable) and for the last three
financial years or from the date of establishment/corporation if less than 3 years, preceding the date of the Master
Prospectus.
(f)
Any consent given by experts or persons whose statement appears in the Master Prospectus.
(43811-W)
66
19.
UNIT TRUST LOAN FINANCING RISK DISCLOSURE STATEMENT
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 instalments. 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 doubts in respect
of any of this risk disclosure statement or the terms of the loan financing, you should consult the
institution offering the loan.
ACKNOWLEDGEMENT OF RECEIPT OF RISK DISCLOSURE STATEMENT
I acknowledge that I have received a copy of this Unit Trust Loan Financing Risk Disclosure Statement and understand
its contents.
Signature
:
Full Name
:
Date
:
(43811-W)
20.
67
DIRECTORS’ DECLARATION
This Master Prospectus has been seen and approved by the Directors of the Management Company of the unit trust
fund, and they collectively and individually accept full responsibility for the accuracy of all information contained
herein and confirmed, having made all enquiries which are reasonable in the circumstances, that to the best of their
knowledge and belief, there are no other facts the omission of which would make any statement herein misleading:
Directors:
YM Raja Dato’ Mufik Affandi bin Raja Khalid
Zulkifli bin Ishak
Dato’ Norraesah binti Haji Mohamad
Abdul Rahim bin Ismail
(43811-W)
ACCOUNT OPENING FORM
(43811-W)
Level 13, Chulan Tower,
No. 3 Jalan Conlay, 50450 Kuala Lumpur, Malaysia
Tel. No.: 603-2168 8998 Fax: 603-2168 8986
Website: http: //www.kaf.com.my
This application form should not be circulated unless accompanied by a Prospectus
1. PARTICULARS OF APPLICANT (INDIVIDUAL / INSTITUTION)
Individual
Joint
Institution
If you are an existing KAF Seagroatt & Campbell Securities Sdn Bhd client, please provide your existing Client Code:
Full name :
(as in NRIC / Passport or as per Certificate of Incorporation)
New NRIC No. / Passport No./ Company Registration No. :
Old NRIC No. :
Address :
Postcode :
City/State:
Tel. No.:
Gender :
Fax No.:
Male
Female Nationality :
Race :
Date of Birth :
D D M M Y
Y Y Y
Please provide us with your bank account details:
Bank:
Branch:
Account No:
INSTITUTIONAL APPLICANT ONLY
Contact person 1 :
Contact person 2 :
Email :
Email :
2. PARTICULARS OF JOINT APPLICANT
Full name ( as in NRIC / Passport ) :
New NRIC No. :
Gender :
Male
Old NRIC No. :
Female Nationality :
Relationship :
Race :
Date of Birth : D D M M Y Y Y Y
Operating Instruction :
Both must sign
Either one may sign
Only First applicant to sign
3. INVESTMENT PARTICULARS
Name of Fund :
Amount :
1. KAF MONEY MARKET FUND
RM
. 0 0
2. KAF JADE FUND
RM
. 0 0
3. KAF BOND FUND
RM
. 0 0
4. PAYMENT MODE
Cash
Cheque*
EPF**
Bank Draft**
Telegraphic Transfer ***
Bank:
Cheque No.:
* If payment is via the EPF investment scheme, please complete & attach the KWSP 9F (AHL) form, along with a photocopy of your IC with thumbprints.
** Please make all cheques payable to KAF FUND MANAGEMENT SDN BHD
*** Please fax the telegraphic confirmation to KAF Fund Management Sdn Bhd at +603 2168 8986
5. DECLARATION
I/We have read and understood the contents of the Prospectus and agree to be bound by the terms and conditions of the trust and
any supplemental conditions upon becoming a unitholder. I am / We are over 18 years old on this application date.
I/We confirm that we are aware of the fees and charges that will be included directly or indirectly when investing in the Funds.
Signature of First Applicant / Authorized Signatory
Signature of Joint Applicant / Authorized Signatory
Date :
Date :
Affix seal or Company Stamp
6. FOR OFFICE USE
Code :
Checked by :
Date :
KFM Client's no.:
Processed by :
Date :
Unit Trust Loan Financing Risk Disclosure Statement
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.
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.
(ii)
If unit prices fall beyond a certain level, you may be asked to provide additional acceptable collateral or pay additional amounts on top of
your normal instalments. If you fail to comply within the time prescribed, your units may be sold to settle your loan.
(iii)
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.
(iv)
This 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 doubts in respect of any of this risk disclosure statement or the terms of the loan financing, you should consult the
institution offering the loan.
ACKNOWLEDGEMENT OF RECEIPT OF RISK DISCLOSURE STATEMENT
I acknowledge that I have received a copy of this Unit Trust Loan Financing Risk Disclosure Statement and understand its contents.
Signature:
Full Name:
Date:
NOTIFICATION OF BENEFICIARY DETAIL
I wish to nominate the following beneficiary/ies to my account with your company:Beneficiary Detail:1.
Name:
2.
Name:
NRIC:
NRIC
Address:
Address:
Beneficiary
Signature:
Beneficiary
Signature:
This notification shall remain in force until further notice.
Yours sincerely,
Name:
(First Applicant)
Date:
Witnessed By:
Name:
(Joint Application)
Date:
Name:
NRIC / Passport No.:
Date:
INVESTMENT FORM
(43811-W)
Level 13, Chulan Tower,
No. 3 Jalan Conlay, 50450 Kuala Lumpur, Malaysia
Tel. No.: 603-2168 8998 Fax: 603-2168 8986
Website: http: //www.kaf.com.my
This application form should not be circulated unless accompanied by a Prospectus
1. PARTICULARS OF APPLICANT (INDIVIDUAL / INSTITUTION)
KAF Fund Management Client No.:
Full name
(as in NRIC / Passport or as per Certificate of Incorporation) :
New NRIC No. / Passport No. / Company Registration No. :
Old NRIC No. :
2. PARTICULARS OF JOINT APPLICANT
Full name ( as in NRIC / Passport ) :
New NRIC No. / Passport No.:
Old NRIC No. :
3. FUND ADDITIONAL INVESTMENT REQUEST
Name of Fund :
Amount :
RM
. 0 0
2. KAF JADE FUND
RM
. 0 0
3. KAF BOND FUND
RM
. 0 0
Payment method
Cash
Cheque*
EPF**
Bank Draft**
Telegraphic Transfer ***
Bank:
Cheque No.:
* If payment is via the EPF investment scheme, please complete & attach the KWSP 9F (AHL) form, along with a photocopy of your IC with thumbprints.
** Please make all cheques payable to KAF FUND MANAGEMENT SDN BHD
*** Please fax the telegraphic confirmation to KAF Fund Management Sdn Bhd at +603 2168 8986
4. FUND REDEMPTION REQUEST
Name of Fund :
Redemption :
Unit:
Amount :
Full
Partial
RM
. 0 0
2. KAF JADE FUND
Full
Partial
RM
. 0 0
3. KAF BOND FUND
Full
Partial
RM
. 0 0
*Telegraphic transfer is only available for redemption above RM10,000. Please tick if you prefer this method of payment for transactions above RM10,000.
If you have ticked the box for Telegraphic transfer, please provide us with your Bank Account details to enable the transfer.
Bank:
Branch :
A/C No.:
5. FUND SWITCHING REQUEST
Name of Fund :
Switch to :
Amount :
1.
1.
All
2.
2.
All
3.
3.
All
or
RM
. 0 0
RM
. 0 0
RM
. 0 0
6. AUTHORIZED SIGNATORIES
I/We have read and understood the contents of the Prospectus and agree to bound by the terms and conditions of the trust and any supplemental
conditions for the funds to be invested in and agree to be bound by the terms and conditions for the subsequent transaction with KAF Fund Management
Sdn Bhd (KFM). I/We acknowledge and accept that KFM has absolute discretion to rely on this confirmation from me/us and I / we undertake to indemnify
and hold harmless on KFM and its employees against all cost, expenses, loss of liabilities, and demands arising out of this confirmation. I/We confirm that we
are aware of the fees and charges that will be included directly or indirectly when investing in the Funds.
Signature of First Applicant /
Authorized Signatory
Signature of Joint Applicant /
Authorized Signatory
Date :
Date :
Affix seal or Company Stamp
7. FOR OFFICE USE
Code :
Checked by :
Date :
Processed by :
Date :

Master Prospectus

Transcription

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