the prospectus. - Fundsupermart.com
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the prospectus. - Fundsupermart.com
LIBRA INVEST BERHAD MASTER PROSPECTUS This Master Prospectus is dated 18 March 2016 and expires on 17 March 2017 This Master Prospectus supersedes the Prospectus dated 16 February 2016 in respect of the Libra Shariah Liquidity Fund Series 2. Fund Name Date of Constitution Libra IncomeEXTRA Fund 25 August 1999 Libra EquityEXTRA Fund 25 August 1999 Libra BondEXTRA Fund 23 September 2002 Libra MoneyEXTRA Fund 23 September 2002 Libra VersatileEXTRA Fund 23 September 2002 Libra DividendEXTRA Fund 3 March 2005 Libra TacticalEXTRA Fund 3 March 2005 Libra Consumer and Leisure Asia Fund 9 May 2007 Libra Liquidity Fund 23 December 2008 Libra Resource Equity Fund 21 May 2010 Libra SyariahEXTRA Fund 7 February 1996 Libra Amanah Saham Wanita 30 April 1998 Libra ASnitaBOND Fund 3 March 2005 Libra Shariah Liquidity Fund Series 2 8 September 2014 MANAGEMENT COMPANY TRUSTEE(S) Libra Invest Berhad (361207-D) Maybank Trustees Berhad (5004-P) CIMB Commerce Trustee Berhad (313031-A) CIMB Islamic Trustee Berhad (167913-M) (A member of the ECM Libra Group) 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 PROSPECTIVE INVESTORS, SEE “RISK FACTORS” COMMENCING ON PAGE 38. Libra Invest Berhad Master Prospectus i PREFACE Dear Investor, This Master Prospectus contains information in relation to the Funds stated below to assist prospective investors to make an informed assessment of the Funds for decision making purposes. The objective of the respective Funds is as follows: (a) Libra IncomeEXTRA Fund aims to provide investors with income and capital appreciation over a medium to long term investment horizon by investing in a balanced portfolio of fixed income instruments and equities. (b) Libra EquityEXTRA Fund seeks to maximise capital returns over a medium to long term period by investing in an activelymanaged, diversified portfolio of equity and equity-related securities. (c) Libra BondEXTRA Fund aims to provide investors with aggressive long term capital growth through investment in high yielding fixed income securities with a relatively high level of market and financial risks. (d) Libra MoneyEXTRA Fund aims to maintain a high degree of liquidity while providing current income through a direct investment portfolio investing in short term, high quality Ringgit-denominated money market instruments. (e) Libra VersatileEXTRA Fund aims to provide investors medium to long term capital appreciation through its investments in specified asset classes by adopting a relatively balanced approach towards equities and fixed income exposure. The Fund aims to achieve capital growth with lower short term volatility than is normally associated with a pure equity fund. (f) Libra DividendEXTRA Fund seeks to achieve relatively stable returns via income and capital appreciation over the medium to long term by investing principally in high dividend yield stocks. (g) Libra TacticalEXTRA Fund aims to provide investors medium to long term capital appreciation by investing principally in liquid equities with large market capitalisation (big caps), and fixed income instruments with flexible asset allocation. (h) Libra Consumer Leisure and Asia Fund seeks to provide capital appreciation over the medium to long term by investing in a diversified portfolio comprising stocks of companies in Asia which are considered to have strong growth prospects and are able to benefit from the rising wealth effect of the region‟s middle class population. (i) Libra Liquidity Fund seeks to preserve capital and maintain a high degree of liquidity while providing steady income with minimal risk by investing primarily in short term deposits. (j) Libra Resource Equity Fund seeks to achieve capital growth over the medium to long term period by investing primarily in equities and equity-related securities traded globally. The Fund may also invest in fixed income securities, structured products and money market instruments. (k) Libra SyariahEXTRA Fund aims to provide investors with medium to long term capital appreciation through investments in specified asset classes by adopting a relatively balanced approach towards equities and fixed income exposure based on the Shariah principles. The Fund aims to achieve capital growth with lower short term volatility than is normally associated with a pure equity fund. ii Libra Invest Berhad Master Prospectus (l) Libra Amanah Saham Wanita seeks to offer relatively good and safe capital growth over the long term period by investing principally in an actively-managed, diversified portfolio of Shariah-compliant equities and equityrelated securities. (m) Libra ASnitaBOND Fund aims to provide capital preservation with regular income over the short to medium term period by investing in Islamic money market instruments and sukuk. (n) Libra Shariah Liquidity Fund Series 2 seeks to preserve capital while providing steady income by investing in short term Islamic deposits. You may refer to Key Data section for information relating to the main features of the Funds on pages 13-23, the specific risks of investing in the Funds on pages 38-41, the profile of investors suitable to invest in the Funds on pages 24-25 and the fees and charges payable in respect of the Fund on pages 27-31. For information on where Units can be bought and sold, investors may refer to the Company Directory section which can be found on page 157. Yours sincerely, LEE WEI CHUNG Chief Executive Officer / Executive Director Libra Invest Berhad Master Prospectus iii RESPONSIBILITY STATEMENTS This Master Prospectus has been reviewed and approved by the directors of Libra Invest Berhad and they collectively and individually accept full responsibility for the accuracy of the information. Having made all reasonable enquiries, they confirm to the best of their knowledge and belief, there are no false or misleading statements, or omission of other facts which would make any statement in this Master Prospectus false or misleading. STATEMENTS OF DISCLAIMER The Securities Commission Malaysia has authorised the Funds and a copy of this Master Prospectus has been registered with the Securities Commission Malaysia. The authorisation of the Funds, and registration of this Master Prospectus, should not be taken to indicate that the Securities Commission Malaysia recommends the said Funds or assumes responsibility for the correctness of any statement made, opinion expressed or report contained in this Master Prospectus. The Securities Commission Malaysia is not liable for any non-disclosure on the part of Libra Invest Berhad, the management company responsible for the said Funds and takes no responsibility for the contents in this Master Prospectus. The Securities Commission Malaysia makes no representation on the accuracy or completeness of this Master Prospectus, and expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of its contents. INVESTORS SHOULD RELY ON THEIR OWN EVALUATION TO ASSESS THE MERITS AND RISKS OF THE INVESTMENT. IF INVESTORS ARE UNABLE TO MAKE THEIR OWN EVALUATION. THEY ARE ADVISED TO CONSULT THEIR PROFESSIONAL ADVISERS. ADDITIONAL STATEMENTS No units of the Funds will be issued or sold based on this Master Prospectus later than one (1) year after the date of this Master Prospectus. Investors should note that they may seek recourse under the Capital Markets and Services Act 2007 for breaches of securities laws and regulations including any statement in this Master Prospectus that is false, misleading, or from which there is a material omission; or for any misleading or deceptive act in relation to this Master Prospectus or the conduct of any other person in relation to the Funds. The word “EXTRA” is referring to the additional services and product features that in the opinion of the Management Company would benefit the investors at large. The application of the word “EXTRA” to the Funds‟ names does not guarantee any return on investment. The word “Dividend” in “DividendEXTRA” is referring to the dividend that the Fund earns from the investment made by the fund manager. Investors are reminded that the dividend earned by the Fund is not a distribution declared by the Fund to its investors. Libra ASnitaBOND Fund, Libra Amanah Saham Wanita, Libra SyariahEXTRA Fund and Libra Shariah Liquidity Fund Series 2 have been certified as being Shariah-compliant by the Shariah adviser appointed for the Libra ASnitaBOND Fund, Libra Amanah Saham Wanita, Libra SyariahEXTRA Fund and Libra Shariah Liquidity Fund Series 2. Libra Invest Berhad Master Prospectus iv Contents 1 Glossary 6 Corporate Directory 10 Investment Strategy i. Standalone Asnitabond Special Features and Advantage of Investing Through 13 oneINVEST / oneINVEST Islamic Key Data i. Fund Information Fund Name, Fund Category, Fund Type, Inception date, Fund Description, Fund Objective, Investment Strategy, Asset Allocation, Performance Benchmark, Principal Risks, Potential Price Fluctuation, Suggested Investment Horizon for Investors, Financial Year End, Investor‟s Profile, Distribution Policy and Units in Circulation. ii. Fees, Charges and Expenses Charges Directly Incurred - Sales Charge - EPF Member‟s Investment Scheme - Non-EPF Member‟s Investment Scheme - Repurchase Charge - Dilution Fee/Transaction Cost & Transfer Fee - Other Charges Fees Indirectly Incurred - Annual Management Fee - Annual Trustee Fee - List of expenses directly related to the Fund - Other Fees payable indirectly by an Investor - Custodian Fee, Rebate and Soft Commission iii. Transaction Information iv. Other Information 38 Risk Factors General risks Specific Risks in Equity Funds Specific Risk in Fixed Income/Sukuk Funds Specific Risks in Money Market Funds 42 Detailed Information Of The Funds Investment Objective, Investment Strategy, Asset Allocation, Risk Management Strategies, Temporary Defensive Positions, Performance Benchmark Permitted Investments Investments Restrictions Investment Abroad 77 Additional Information In Relation To The Funds Policy on Application of Investment Restrictions of the Funds Valuation of Assets Quoted securities and suspended securities Unquoted fixed income securities/sukuk Quoted securities dividend Derivatives Collective investment schemes Deposits Structured products Money market instruments Valuation Point for the Funds Libra Invest Berhad Master Prospectus 79 Shariah Investment Guidelines Investment in Malaysia Cleansing Process for the Fund Zakat (tithe) for the Fund 82 Funds Performance Average Total Returns Annual Total Returns Distribution Record Portfolio Turnover Ratio (PTR) Asset Allocation 104 Historical Financial Highlights Of The Funds i. Audited Financial Statement of the Funds Statement of Comprehensive Income Statement of Financial Position Management Expense Ratio (MER) 114 Fees, Charges And Expenses Of The Funds i. Charges Directly Incured Sales Charge Repurchase Charge Dilution Fee/Transaction Cost Transfer Fee Other Charges Switching Fee 118 ii. Fees Indirectly Incurred Annual Management Fee Annual Trustee Fee iii. Fees or Charges of the Advisor to the Management Company Transaction Information i. Computation of NAV Pricing Policy Single Pricing Forward Pricing Incorrect Pricing Policy ii. How is the Selling Price Computed iii. How is the Liquidation Amount Computed iv. Transaction Details Who can invest How can I Purchase or Liquidate an Investment Where can I obtain an Application Form How do I pay for an Investment How to Liquidate My Investment Minimum Transaction Details for each Fund Transfer Facility Switching Facility Minimum Switching EPF Members‟ Investment Scheme Cooling-off Policy What Are the Important Points to Note before Investment Anti-Money Laundering Policy Distribution Policy and Reinvestment Policy Liquidation Reinvestment Policy Unclaimed Moneys Policy v Libra Invest Berhad Master Prospectus vi 124 The Management Company: Libra Invest Berhad Corporate Profile of the Management Company Staff Strength Summary of Financial Position Our Duties and Responsibilities Material Litigation and Arbitration Roles and Functions of the Director Roles and Functions of the Investment Committee The Board of Directors and Investment Committee Members Management Staff Duties and Responsibilities of the Fund Managers Profile of Key Investment Personnel 131 The Shariah Adviser Corporate Profile of Shariah Adviser General Information of IBFIM Experience in Advisory and Services Roles and Responsibilities of the Shariah Adviser Profile of the Shariah Team 133 The Trustee Maybank Trustees Berhad (“MTB”) CIMB Islamic Trustee Berhad CIMB Commerce Trustee Berhad 143 Salient Terms Of The Deed i. Recognition of Unit Holders Rights Liabilities Suspension and Deferrals Maximum Fees and Charges Permitted by the Deed ii. Procedures to Increase the Direct Charges and Indirect Fees Sales Charge Repurchase Charge Annual Management Fee Annual Trustee Fee iii. Procedures to Increase the Maximum Rate of Direct Charges and Indirect Fees in the Deed Permitted Expenses Payable by the Funds Removal, Replacement and Retirement of the Management Company and Trustee Termination of the Fund Provisions governing Unit Holders‟ Meetings Meetings directed by Unit Holders Unit Holders meeting convened by the Management Company Unit Holders meeting convened by the Trustee 149 Approvals And Conditions i. Variations and Exemptions from SC Guidelines EquityEXTRA 150 Related – Party Transactions And Conflict Of Interest i. Related-Party Transactions ii. Policy on Conflict of Interest iii. Maybank Trustees Berhad (“MTB”) iv. CIMB Islamic Trustee Berhad v. CIMB Commerce Trustee Berhad Libra Invest Berhad Master Prospectus 152 Taxation Adviser’s Letter On Taxation Of The Funds And Unit Holders i. Taxation of the Funds offered under the Master Prospectus and Unit holders ii. Taxation of the Funds Domestic Investments General Taxation Dividends and Other Exempt Income Foreign Investments Tax Deductible Expenses Real Property Gains Tax iii. Taxation of Unit Holders 155 Additional Information 156 Consents Jurisdiction Documents Available For Inspection Directors’ Responsibility Statement 157 Company Directory vii Libra Invest Berhad Master Prospectus 1. GLOSSARY In this Master Prospectus, the following abbreviations or words shall have the following meanings, unless otherwise stated: Active Account An account with a balance of 5,000 units or more is deemed active. Baitul Mal Refers to an Islamic treasury institution intended for community development as well as to provide for disadvantaged Muslims. BNM Bank Negara Malaysia. Bursa Malaysia Bursa Malaysia Securities Berhad the stock exchange managed or operated by Bursa Malaysia Berhad. Business Day A day on which Bursa Malaysia is open for trading. CMSA Capital Markets and Services Act 2007 as may be amended from time to time. Cooling-Off Period Grace period for investors to reconsider their investment. Deed(s) The deeds or master deeds for the respective Funds and any other supplemental deeds or master supplemental deeds that may be entered into between the Management Company and the Trustees and registered with the Securities Commission Malaysia. deposits Money placed with financial institutions in fixed or current deposit. Eligible Market means a market that: (a) is regulated by a regulatory authority; (b) operates regularly; (c) is open to the public; and (d) has adequate liquidity for the purposes of the Fund. For investments in a foreign market*, a foreign market is an eligible market where it has satisfactory provisions relating to: (a) the regulation of the foreign market; (b) the general carrying on of business in the market with due regard to the interests of the public; (c) adequacy of market information; (d) corporate governance; (e) disciplining of participants for conduct inconsistent with just and equitable principles in the transaction of business, or for a contravention of, or a failure to comply with the rules of the market; and (f) arrangements for the unimpeded transmission of income and capital from the foreign market. *Note: Investments in a foreign market are limited to markets where the regulatory authority is an ordinary or associate member of the International Organization of Securities Commissions (IOSCO). Equity-related securities Securities that are convertible or exchangeable to equity; e.g. warrants, convertible loan stocks. EPF Employees Provident Fund. FBM100 FTSE Bursa Malaysia Top 100 Index. FBM EMAS Shariah Index FTSE Bursa Malaysia EMAS Shariah Index. 1 Libra Invest Berhad Master Prospectus Financial Institution (a) If the institution is in Malaysia – i. licensed bank; ii. licensed investment bank; or iii. Islamic bank; (b) If the institution is outside Malaysia, any institution that is licensed/ registered/approved/authorised to provide financial services by the relevant banking regulator. fixed income instruments An instrument which provides returns in the form of fixed periodic payments and the return of principal at maturity, including but not limited to short term instruments such as government bills, commercial papers and fixed deposit, medium term notes and long term instruments such as bonds. Fund(s) Libra IncomeEXTRA Fund (“IncomeEXTRA”) ; or Libra EquityEXTRA Fund (“EquityEXTRA”) ; or Libra BondEXTRA Fund (“BondEXTRA”) ; or Libra MoneyEXTRA Fund (“MoneyEXTRA”) ; or Libra VersatileEXTRA Fund (“VersatileEXTRA”) ; or Libra DividendEXTRA Fund (“DividendEXTRA”) ; or Libra TacticalEXTRA Fund (“TacticalEXTRA”) ; or Libra Consumer and Leisure Asia Fund (“LCLAF”) ; or Libra Liquidity Fund (“LLF”) ; or Libra Resource Equity Fund (“LREF”) ; or Libra SyariahEXTRA Fund (“SyariahEXTRA”) ; or Libra Amanah Saham Wanita (“ASnita”); and Libra ASnitaBOND Fund (“ASnitaBOND”) Libra Shariah Liquidity Fund Series 2 (“LSLF Series 2”) (hereinafter referred to individually as “the Fund” and collectively as “the Funds”). GIA Refers to investment account which is based on any Shariah contracts and applicable for investment purposes. Guidelines Guidelines on Unit Trust Funds issued by the Securities Commission Malaysia as may be amended from time to time. GST Goods and Services Tax. Islamic deposits Means a sum of money accepted or paid in accordance with Shariah(a) on terms under which it will be repaid in full, with or without any gains, return or any other consideration in money or money‟s worth, either on demand or at a time or in circumstances agreed by or on behalf of the person making the payment and person accepting it; or (b) under an arrangement, on terms whereby the proceeds under the arrangement to be paid to the person paying the sum of money shall not be less than such sum of money, but excludes money paid bona fide(i) by way of an advance or a part payment under a contract for the sale, hire or other provision of property or services, and is repayable only in the event that the property or services are not in fact sold, hired or otherwise provided; (ii) by way of security for the performance of a contract or by way of security in respect of any loss which may result from the non-performance of a contract; (iii) without limiting paragraph (ii), by way of security for the delivery up or return of any property, whether in a particular state of repair or otherwise; and (iv) in such other circumstances, or to or by such other person, as set out in schedule 2 of the IFSA. 2 Libra Invest Berhad Master Prospectus IFSA Islamic Financial Services Act 2013. IUTA Institutional Unit Trust Adviser. Investment Purchase of Units by investors (sale of Units by the Management Company). Liquidation Redemption of Units by investors (repurchase of Units by the Management Company). long term Means a period of more than three (3) years. Management Company/ Manager/LIB Libra Invest Berhad. MARC Malaysian Rating Corporation Berhad. medium term Means a period between one (1) to three (3) years. MSCI AC Asia Morgan Stanley Capital International All Country Asia Consumer Discretionary Index. MSCI AC Asia Pacific ex-Japan Morgan Stanley Capital International All Country Asia Pacific ex-Japan. MSCI ACWI Morgan Stanley Capital International All Country World Index. NAV Net Asset Value of a fund is the value of all the assets of the fund at a particular valuation point less the total liabilities of the fund at the same 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 trustee fee for the relevant day. NAV per Unit The Net Asset Value of the Fund divided by the number of Units in circulation at the same valuation point. OTC Over-the-counter trades refer to the trading of financial instruments directly between two parties without going through the securities exchange. OTC trades are negotiable and both parties agree upon the particular of the trade prior to settlement in the future. oneINVEST / oneINVEST Islamic An investment strategy which provides unlimited free switches between selected Funds which currently comprises EquityEXTRA, DividendEXTRA, ASnita and ASnitaBOND. The Management Company may from time to time offer this strategy for other funds under its management. Switching from a Shariah-compliant fund to a conventional fund is not encouraged especially for Muslim Unit Holders. RAM RAM Rating Services Berhad. Ringgit/RM and sen Ringgit Malaysia and sen respectively. SACSC Shariah Advisory Council of the Securities Commission Malaysia. SC Securities Commission Malaysia. Shariah means Islamic Law comprising the whole body of rulings pertaining to human conducts derived from the sources of Shariah. Shariah Adviser Refers to IBFIM or any Shariah adviser appointed for the Fund which includes its permitted assigns, successor in title and any new or replacement Shariah adviser. short term Means a period of less than one (1) year. Shariah requirements A phrase or expression which generally means making sure that any human conduct must not involve any prohibition and that in performing that conduct all the essential elements that make up the conduct must be present and each essential element must meet all the necessary conditions required by the Shariah for that element. Single Pricing Selling of Units by the Management Company (i.e. when you purchase Units) and repurchase of Units by the Management Company (i.e. when you liquidate your Units) will be carried out at NAV per Unit (the actual value of a Unit). The sales charge or repurchase charge (if any) would be computed separately based on your investment or liquidation amount. Special Resolution Means a resolution passed at a meeting of Unit Holders duly convened in accordance with the Deed and carried by a majority in number representing at least three-fourths of the value of the Units held by the Unit Holders voting at the meeting in person or by proxy. sukuk Refers to certificates of equal value which evidence undivided ownership or investment in the assets using Shariah principles and concepts endorsed by the SACSC. 3 Libra Invest Berhad Master Prospectus transferable securities Equities, debentures and warrants. Trustee(s) Respectively, Maybank Trustees Berhad, CIMB Commerce Trustee Berhad and CIMB Islamic Trustee Berhad. Unit Means an undivided share in the beneficial interest and/or right in the Fund and a measurement of the interest and/or right of a Unit Holder in the Fund. Unit Holder Means the person registered as the holder of a Unit or Units including persons jointly registered for the Fund. 4 Libra Invest Berhad Master Prospectus Unit Trust Funds managed and administered by the Management Company are: Abbreviated Fund Name Fund Unit Trust Funds: ASnita Libra Amanah Saham Wanita ASnitaBOND Libra ASnitaBOND Fund BondEXTRA Libra BondEXTRA Fund LREF Libra Resource Equity Fund DividendEXTRA Libra DividendEXTRA Fund EquityEXTRA Libra EquityEXTRA Fund IncomeEXTRA Libra IncomeEXTRA Fund LCLAF Libra Consumer and Leisure Asia Fund LLF Libra Liquidity Fund MoneyEXTRA Libra MoneyEXTRA Fund SyariahEXTRA Libra SyariahEXTRA Fund TacticalEXTRA Libra TacticalEXTRA Fund VersatileEXTRA Libra VersatileEXTRA Fund LSLF Series 2 Libra Shariah Liquidity Fund Series 2 5 Libra Invest Berhad Master Prospectus 2. CORPORATE DIRECTORY Management Company : Libra Invest Berhad (361207-D) (A member of the ECM Libra Group) Registered Office : 2nd Floor, West Wing Bangunan ECM Libra 8 Jalan Damansara Endah Damansara Heights 50490 Kuala Lumpur Business Address : Ground Floor Bangunan ECM Libra 8 Jalan Damansara Endah Damansara Heights 50490 Kuala Lumpur General Line: 603-2089 1888 Investor Care Line: 603-2089 1883 Fax: 603-2096 1020 / 2096 1662 E-mail: [email protected] Website: www.librainvest.com Please check our website for any changes in the addresses and contact numbers. Board of Directors : Datuk Kamarudin bin Md Ali (Chairman & independent non-executive director) Khairudin bin Ibrahim (Independent non-executive director) Mahadzir bin Azizan (Independent non-executive director) Gareth Lim Tze Xiang (Non-independent non-executive director) Chin Jon Wei (Alternate director to Gareth Lim Tze Xiang) Lee Wei Chung (Chief executive officer & non-independent executive director) Investment Committee Members : Mahadzir bin Azizan (Chairman & independent member) Khairudin bin Ibrahim (Independent member) Datuk Kamarudin bin Md Ali (Independent member) Gareth Lim Tze Xiang (Non-independent member) Lee Wei Chung (Non-independent member) Company Secretary : Chan Soon Lee (MIA 2562) 2nd Floor, West Wing Bangunan ECM Libra 8 Jalan Damansara Endah Damansara Heights 50490 Kuala Lumpur ECM Libra Financial Group Berhad, Board Audit & Risk Management Committee Members : Datuk Kamarudin bin Md Ali (Chairman & independent non-executive director) Dato‟ Othman bin Abdullah (Independent non-executive director) Mahadzir bin Azizan (Independent non-executive director) 6 Libra Invest Berhad Master Prospectus The Trustee(s) & its Delegates (local & foreign) Registered Office and Business Address : Maybank Trustees Berhad (5004-P) 8th Floor, Menara Maybank 100, Jalan Tun Perak 50050 Kuala Lumpur Tel : 603 - 2078 8363 / 2070 8833 Fax: 603 - 2070 9387 Local Custodian Registered Office : Malayan Banking Berhad (3813-K) 8th Floor, Menara Maybank 100, Jalan Tun Perak 50050 Kuala Lumpur Tel : 603 - 2074 7111 Fax: 603 - 2032 1572 Business Address : 8th Floor, Menara Maybank 100, Jalan Tun Perak 50050 Kuala Lumpur Tel : 603 - 2074 7111 / 2070 8833 Fax: 603 - 2070 0966 Website: www.maybank2U.com.my Foreign Custodian Registered Office : Standard Chartered Bank Malaysia Berhad (115793-P) Level 16, Menara Standard Chartered 30, Jalan Sultan Ismail 50250 Kuala Lumpur Tel : 603 - 2117 7777 Website: www.standardchartered.com.my Business Address : Mezzanine Floor, Menara Standard Chartered 30, Jalan Sultan Ismail 50250 Kuala Lumpur Tel : 603 - 2781 7319 / 2781 7327 Fax: 603 - 2711 6060 E-mail : [email protected] Registered Office : CIMB Islamic Trustee Berhad (167913-M) Level 13, Menara CIMB Jalan Stesen Sentral 2 Kuala Lumpur Sentral 50470 Kuala Lumpur Tel : 603 - 2261 8888 Fax: 603 - 2261 0099 Website: www.cimb.com Business Address : Level 21, Menara CIMB Jalan Stesen Sentral 2 Kuala Lumpur Sentral 50470 Kuala Lumpur Tel : 03 - 2261 8888 Fax: 03 - 2261 9889 7 Libra Invest Berhad Master Prospectus The Trustee(s) and its Delegates (local and foreign) Custodian Registered Office : CIMB Islamic Bank Berhad (671380-H) Level 13, Menara CIMB Jalan Stesen Sentral 2 Kuala Lumpur Sentral 50470 Kuala Lumpur Tel : 603 - 2261 8888 Fax: 603 - 2261 8889 Website: www.cimb.com Business Address : Level 21, Menara CIMB Jalan Stesen Sentral 2 Kuala Lumpur Sentral 50470 Kuala Lumpur Tel : 603 - 2261 8888 Fax: 603 - 2261 9892 Registered Office : CIMB Commerce Trustee Berhad (313031-A) Level 13, Menara CIMB Jalan Stesen Sentral 2 Kuala Lumpur Sentral 50470 Kuala Lumpur Tel : 03 - 2261 8888 Fax: 03 - 2261 0099 Website: www.cimb.com : Level 21, Menara CIMB Jalan Stesen Sentral 2 Kuala Lumpur Sentral 50470 Kuala Lumpur Tel : 03 - 2261 8888 Fax: 03 - 2261 9889 Custodian Registered Office : CIMB Bank Berhad (13491-P) Level 13, Menara CIMB Jalan Stesen Sentral 2 Kuala Lumpur Sentral 50470 Kuala Lumpur Tel : 03 - 2261 8888 Fax: 03 - 2261 8889 Website: www.cimb.com Business Address : Level 21, Menara CIMB Jalan Stesen Sentral 2 Kuala Lumpur Sentral 50470 Kuala Lumpur Tel : 03 - 2261 8888 Fax: 03 - 2261 9892 Shariah Adviser Registered Office : IBFIM (763075-W) No 149A, 149B, 151B Persiaran Raja Muda Musa 42000 Port Klang Selangor Darul Ehsan Business Address 8 Libra Invest Berhad Master Prospectus Business Address : 3rd Floor, Menara Takaful Malaysia Jalan Sultan Sulaiman 50000 Kuala Lumpur Tel : 603 - 2031 1010 Fax: 603 - 2078 5250 Website: www.ibfim.com Federation of Investment Managers Malaysia (272577-P) : 19-06-1, 6th Floor, Wisma Tune 19, Lorong Dungun Damansara Heights 50490 Kuala Lumpur Auditors : Ernst & Young (AF 0039) Level 23A, Menara Milenium Jalan Damanlela Pusat Bandar Damansara 50490 Kuala Lumpur Tax Adviser : PricewaterhouseCoopers Taxation Services Sdn Bhd (464731-M) Level 10, 1 Sentral, Jalan Travers Kuala Lumpur Sentral P.O.Box 10192 50706 Kuala Lumpur, Malaysia Principal Bankers : Malayan Banking Berhad (3813-K) Ground Floor, Block C Kompleks Pejabat Damansara Jalan Semantan Bukit Damansara 50490 Kuala Lumpur Standard Chartered Bank Malaysia Berhad (115793-P) Level 16, Menara Standard Chartered 30, Jalan Sultan Ismail 50250 Kuala Lumpur Solicitors : Raja, Darryl & Loh Advocates and Solicitors 18th Floor, Wisma Sime Darby Jalan Raja Laut 50350 Kuala Lumpur 9 Libra Invest Berhad Master Prospectus 10 3. INVESTMENT STRATEGY - oneINVEST / oneINVEST Islamic oneINVEST / oneINVEST Islamic Equity Non-Equity (Islamic) EquityEXTRA Fund DividendEXTRA Fund (Equity Funds) ASnitaBOND Fund (Bond Fund) Equity (Islamic) Amanah Saham Wanita (Equity Fund) Unlimited Free Switches Switching from a Shariah-compliant Fund to a conventional Fund is not encouraged especially for Muslim Unit Holders. oneINVEST / oneINVEST Islamic is an investment strategy that comprises two types of diversified, professionally managed unit trust funds – equity and non-equity funds, and is categorised into conventional and Shariah-compliant funds. The strategy is designed for investors who wish to participate simultaneously in two major asset classes while retaining total flexibility in the asset allocation decision. The Funds complement each other in terms of their contrasting attributes and the investment strategy seeks investor’s active participation by allowing easy, convenient switching between the Funds when there is a change in market conditions and interest rate direction, or a change in the investor’s risk tolerance and investment objectives. Your Choice of Asset Class Each Fund is designed with different objectives, which allows the investor maximum flexibility to choose the Fund that best meets his/her investment goals and risk tolerance depending on the changes in market conditions and interest rate direction. The following Funds are open-ended unit trust funds: ASnitaBOND (Islamic bond/income fund); EquityEXTRA (equity/growth fund); DividendEXTRA (equity/income fund); and ASnita (Islamic equity/growth and to a lesser extent income fund). You may invest in one or more Funds with complete flexibility to switch between the Funds. The switches are free and at NAV per Unit to NAV per Unit, subject to the availability of Units. No switching fee is imposed on any of the switches so as to encourage profit taking (if any) (i.e. from holding in equity Funds and reinvestment in bond Funds.) The switches also facilitate „cost averaging‟ by shifting the holding in bond Funds to equity Funds gradually, over a reasonable time interval. Libra Invest Berhad Master Prospectus 11 STANDALONE ASNITABOND Investors may invest in ASnitaBOND on a standalone basis (for those who do not want or who are not ready to invest in the equity market) without the benefit of the switch option available to them if they were to invest through oneINVEST / oneINVEST Islamic. Investors can avail themselves to the oneINVEST / oneINVEST Islamic switch option through a conversion facility (refer to page 27 for details). The standalone ASnitaBOND refer to the ASnitaBOND Fund under the which has no switch option but charges a lower sales charge. oneINVEST / oneINVEST Islamic strategy Special Features and Advantages of Investing Through oneINVEST / oneINVEST Islamic Investor Driven Allows investor to set up an investment portfolio reflecting his/her individual risk profile, objective and investment time frame. Dynamic yet Flexible Designed for maximum flexibility by allowing multiple switches between the Funds to take advantage of changes in market conditions and interest rate direction. Unlimited free of charge switches between equity Funds and non-equity Funds at NAV per Unit to NAV per Unit. Professional Management Disciplined top down investment process incorporating appraisal of global and domestic economic trends, asset class evaluation, sector analysis and security analysis. Prudent risk management procedures and diversification. Active Participation by the Investor Enables investor to be more financially aware of changing trends in the financial markets and the impact on his/her investments. Encourages investor to adopt a more pro-active approach to personal investing. Convenience and Expertise The fund managers will conduct detailed investment research which the individual investor may not have the time or resources to carry out. The investor is kept informed with regular performance reports and market updates. Rebalancing or adjustments of the portfolio can be done conveniently by filing up and submitting a switch form to any Nationwide Investor Care and Service Centres. Transparency and Single Pricing (with sales charge) It is the pricing method whereby selling of units by the Management Company (i.e. when you purchase units) and repurchase of units by the Management Company(i.e. when you liquidate your units) will be carried out at NAV per Unit (the actual value of a unit). The sales or repurchase charge (if any) would be computed separately based on your net investment or liquidation amount and separate from the price per unit. With „Single Pricing‟, you invest and liquidate at one price – NAV per Unit (i.e. there is no spread between the selling price and buying price). LIB adopted this practice since its establishment in September 1999 which follows the international trend. In this pricing methodology, investments and liquidations in unit trust funds are made at NAV per Unit at the end of a valuation point (usually at the end of the Business Day). Hence, at the point of investment, you can readily determine the maximum charge (computed based on your net investment amount) you would incur even before the NAV per Unit is known. The charge is clearly stated in your confirmation of investment (separate from your net investment sum) which is generally sent to the investor within ten (10) Business Days. Libra Invest Berhad Master Prospectus 12 Competitive and Fair Sales Charge Timely and efficient service at competitive and fair cost is the service philosophy which drives LIB. Presently, the maximum sales charge for investments through other than through EPF Members‟ Investment Scheme is 5% of the Fund‟s NAV. Deal Direct In its commitment to bring personalised investor care and attention to its investors, LIB has made a unique stance to offer its funds and investment expertise predominantly through its full-time salaried employees. However, investors may opt to go through appointed third party distributors or agency force. As salaried employees of the company, they are focused on enhancing investors‟ total investment experience with LIB over the long term. Regular All-In-One Statement/Report Investors will regularly receive an all-in-one statement or report showing their oneINVEST / oneINVEST Islamic portfolio performance. Details of initial and additional investments plus value and cost of your unitholdings are clearly set out in our regular all-in-one statement or report. These detailed updates are designed to provide you with the necessary information to better monitor your long term investment goals. Libra Invest Berhad Master Prospectus 13 4. KEY DATA Fund Information This section is only a summary of the salient information about the Funds. Investors should read and understand the whole Master Prospectus before making investment decisions. Fund Name Fund Category Fund Type Inception Date IncomeEXTRA Balanced Income and Growth 10 September 1999 EquityEXTRA Equity Growth 10 September 1999 BondEXTRA Bond Growth 8 October 2002 MoneyEXTRA Bond Income 8 October 2002 VersatileEXTRA Balanced Growth and to a lesser extent income 28 October 2002 DividendEXTRA Equity Income 18 March 2005 TacticalEXTRA Equity Growth 18 March 2005 LCLAF Equity Growth 18 July 2007 LLF Money Market Income 18 February 2009 LREF Equity Capital Growth 18 March 2011 SyariahEXTRA Balanced(Shariah) Growth and to a lesser extent income 12 March 1996 ASnita Equity(Shariah) Growth and to a lesser extent income 4 May 1998 ASnitaBOND Bond(Shariah) Income 18 March 2005 LSLF Series 2 Money Market (Shariah) Income 4 February 2015 Page(s) - Libra Invest Berhad Master Prospectus Fund Information Fund Name Fund Description IncomeEXTRA IncomeEXTRA is an open-ended unit trust fund, investing in fixed income securities (including money market instruments) and equities. 42 EquityEXTRA EquityEXTRA is an open-ended unit trust fund, with a medium to long term investment horizon, which invests primarily in equities and equity-related securities. 44 BondEXTRA BondEXTRA is an open-ended unit trust fund investing primarily in high yield, long term fixed income securities. 46 MoneyEXTRA MoneyEXTRA is an open-ended unit trust fund, investing primarily in very short term, highly liquid, near cash and money market instruments and partially in fixed income securities. 48 VersatileEXTRA VersatileEXTRA is an open-ended unit trust fund investing in a blend of quoted securities, bonds, and other money market instruments and other financial derivatives. 51 DividendEXTRA DividendEXTRA is an open-ended unit trust fund, with a medium to long term investment horizon, which invests principally in high dividend yield stocks. 54 TacticalEXTRA TacticalEXTRA is an open-ended unit trust fund investing in quoted equities of companies primarily with large market capitalization (big caps), bonds and other money market instruments according to market outlook and economic conditions. 56 LCLAF LCLAF is an open-ended regional unit trust fund, which seeks to offer investors a wider investment universe of quality growth stocks by investing primarily in those that offer exposure to the consumer and leisure sector in Asia. The Fund will be a proxy to the growth prospects of this burgeoning sector which is expected to be a major beneficiary of rising disposable income in the region. In turn, investors will earn potentially attractive returns. The Fund‟s key performance is to search for positive absolute returns over the medium to long term (3-5 years) investment horizon. 59 LLF LLF is an open-ended unit trust fund, investing primarily in Ringgit-denominated short term deposits with licensed financial institutions. 62 LREF LREF is an open ended global unit trust fund which will invest at least 70% of its NAV in equities and equity-related securities of companies that are involved in the exploration for and the development, production and marketing resources products such as energy, minerals, agriculture and related industries globally which are listed on the stock exchanges of countries listed in the MSCI ACWI (except for the excluded countries mentioned in the investment strategy of the LREF in Section 6). 64 SyariahEXTRA SyariahEXTRA is an open-ended unit trust fund investing in a blend of quoted Shariah-compliant equities, sukuk and other Islamic money market instruments and other Shariah-compliant derivatives (where available), which have been approved by the SACSC and /or the Shariah Adviser. 67 ASnita ASnita is an open-ended unit trust fund with long term (> 5 years) investment horizon, which invests primarily in quoted Shariah-compliant equities and equityrelated securities. 70 ASnitaBOND ASnitaBOND is an open-ended unit trust fund with a short to medium term investment horizon, which invests primarily in sukuk. 73 LSLF Series 2 LSLF Series 2 is an open-ended unit trust fund investing in Ringgit-denominated short term Islamic deposits with Financial Institutions. 75 Note: We regard 1-3 years as medium term and above 3 years as long term. Page(s) 14 Libra Invest Berhad Master Prospectus 15 Fund Information Fund Name Fund Objective Page(s) IncomeEXTRA The Fund aims to provide investors with income* and capital appreciation over a medium to long term investment horizon by investing in a balanced portfolio of fixed income instruments and equities. 42 EquityEXTRA The primary objective of the Fund is to maximize capital returns over a medium to long term period by investing in an actively-managed, diversified portfolio of equity and equity-related securities. 44 BondEXTRA The primary objective of the Fund is to provide investors with aggressive long term capital growth through investment in high yielding fixed income securities with a relatively high level of market and financial risks. 46 MoneyEXTRA The primary objective of the Fund is to maintain a high degree of liquidity while providing current income through a direct investment portfolio investing in short term, high quality Ringgit-denominated money market instruments. 48 VersatileEXTRA The primary objective of the Fund is to provide investors medium to long term capital appreciation through its investments in specified asset classes by adopting a relatively balanced approach towards equities and fixed income exposure. The Fund aims to achieve capital growth with lower and short term volatility than is normally associated with a pure equity fund. 51 DividendEXTRA The Fund seeks to achieve relatively stable returns via income and capital appreciation over the medium to long term by investing principally in high dividend yield stocks. 54 TacticalEXTRA The Fund aims to provide investors medium to long term capital appreciation by investing principally in liquid equities with large market capitalization (big caps), and fixed income instruments with flexible asset allocation. 56 LCLAF The Fund seeks to provide capital appreciation over the medium to long term by investing in a diversified portfolio comprising stocks of companies in Asia which are considered to have strong growth prospects and are able to benefit from the rising wealth effect of the region‟s middle class population. 59 LLF The Fund seeks to preserve capital and maintain a high degree of liquidity while providing steady income with minimal risk by investing primarily in short term deposits. 62 LREF The Fund seeks to achieve capital growth over a medium to long term period by investing primarily in equities and equity-related securities traded globally. The Fund may also invest in fixed income securities, structured products and money market instruments. 64 SyariahEXTRA The Fund aims to provide investors with medium to long term capital appreciation through investments in specified asset classes by adopting a relatively balanced approach towards equities and fixed income exposure based on the Shariah principles. The Fund aims to achieve capital growth with lower short term volatility than is normally associated with a pure equity fund. 67 ASnita The primary objective of the Fund is to offer relatively good and safe capital growth over the long term period by investing principally in an actively-managed, diversified portfolio of Shariah-compliant equities and equity-related securities. 70 ASnitaBOND The Fund aims to provide capital preservation with regular income over the short to medium term period by investing in Islamic money market instruments and sukuk. 73 LSLF Series 2 The Fund seeks to preserve capital¹ while providing steady income² by investing in short term Islamic deposits. 75 * Distribution of income will primarily be done by way of reinvestment into additional Units. Kindly refer to the distribution policy at page 123 of this Master Prospectus for full details. Note 1: We regard 1-3 years as medium term and above 3 years as long term. Note 2: ¹ Unit Holders are to note that this is not a capital guaranteed Fund. Unit Holders’ capital is neither guaranteed nor protected. ² All income distribution will be automatically reinvested into additional Units. Libra Invest Berhad Master Prospectus 16 Fund Information Fund Name Investment Strategy Page(s) IncomeEXTRA The Fund invests primarily in income-generating securities from both fixed income and equity asset classes. The Fund will be anchored by a relatively stable portfolio of fixed income securities which would be held for their regular income yield. Concurrently, the Fund will also invest equities that offer high dividend yields. Growth will be the secondary objective of the Fund, which the Manager expects to derive from the gradual capital appreciation of the high-dividend yielding stocks, as well as from selected picks of fundamentally undervalued stocks. 42 EquityEXTRA The Fund invests principally in equities and equity-related securities in Malaysia. 44 BondEXTRA The Fund invests principally in long term bonds and fixed income securities. Its key performance is entirely in search of consistent absolute returns over the long term investment horizon. 46 MoneyEXTRA The Fund adopts an investment strategy which will provide a return comparable to that of Ringgit-denominated short term money market deposits, and at the same time, preserve the Fund‟s principal value and maintain a high degree of liquidity. 48 VersatileEXTRA The Fund invests principally in a balanced portfolio consisting of equities, equityrelated securities and fixed income securities. Its key performance is entirely in search of consistent absolute returns over the medium to long term investment horizon. It is a Malaysian focus fund but it may invest up to 30% of its NAV offshore. 51 DividendEXTRA The Fund invests principally in high dividend yield stocks. It is a Malaysian focus fund but it may invest up to 30% of its NAV offshore. 54 TacticalEXTRA The Fund invests primarily in a portfolio of equities comprising large-cap companies in search for returns against the backdrop of a bullish market. During market uncertainty, it shall adopt a relatively defensive approach and have more fixed income exposure to provide capital preservation or to invest tactically. Its key performance is entirely in search of absolute returns over the medium to long term investment horizon. 56 LCLAF The Fund will have two concurrent strategies. On a macro level, the Fund will look for upcoming trends or emerging areas of growth in the Asian consumer and leisure sectors. These could arise, for example, from new developments in other global markets or from new direct investments. On a micro level, the Fund will seek undervalued consumer and leisure related companies that have yet to be re-rated to their intrinsic values. These companies should have a strong business franchise, be professionally managed and have proven business strategies. 59 LLF The Fund invests up to 100% of its NAV in Ringgit-denominated short term deposits with licensed financial institutions. 62 LREF The Fund aims to achieve its investment objective through a diversified investment portfolio of equities and equity-related securities which are listed on the stock exchanges of countries listed in the MSCI ACWI (except for the excluded countries mentioned in the investment strategy of the LREF in Section 6). The Fund will invest at least 70% of its NAV in equities and equity-related securities of companies that are involved in the exploration for and the development, production and marketing of resources products such as energy, minerals, agriculture and related industries. The Fund may also invest in other investments depending on the market outlook and economic conditions. 64 Libra Invest Berhad Master Prospectus Fund Information SyariahEXTRA The Fund‟s key performance is entirely in search of consistent absolute returns, over the medium to long term investment horizon. 67 ASnita The Fund generally adopts an investment strategy which emphasises on appropriate asset allocations in different market conditions to enhance risk-adjusted returns. 70 ASnitaBOND The Fund adopts an investment strategy which will provide returns comparable to that of short term Islamic money market deposits, and at the same time preserve the Fund‟s principal value and maintain a high degree of liquidity. 73 LSLF Series 2 The Fund will invest 100% of its NAV in Ringgit-denominated short term Islamic deposits with Financial Institutions. Note: The Fund‟s investment in Islamic deposits may be lower than 100% to allow for payment of fees and expenses as permitted under the Deed. Note: We regard 1-3 years as medium term and above 3 years as long term. 75 17 Libra Invest Berhad Master Prospectus Fund Information Fund Name IncomeEXTRA EquityEXTRA BondEXTRA Asset Allocation Page(s) 42 Minimum 40% to 60% of the Fund‟s NAV in equities; Minimum 40% to 60% of the Fund‟s NAV in fixed income securities (including money market instruments) and liquid assets; and Minimum 2% of the Fund‟s NAV in liquid assets. Minimum 70% of the Fund‟s NAV in equity and equity-related securities; and Minimum 2% of the Fund‟s NAV in liquid assets. 44 Minimum 70% of the Fund‟s NAV in fixed income instruments (minimum P3 or BBB3 by RAM or equivalent rating by other rating agencies); and Minimum 2% of the Fund‟s NAV in liquid assets. 46 Weighted average term to maturity is expected to be approximately 4 to 8 years, under normal circumstances. MoneyEXTRA Minimum 70% of the Fund‟s NAV in cash, deposits and other liquid assets; Up to 30% of the Fund‟s NAV will be invested in money market instruments, bonds with a minimum rating of A3 by RAM or equivalent rating by other rating agencies, and commercial papers with a rating of P2 by RAM or equivalent rating by other rating agencies; and Minimum 2% of the Fund's NAV shall be in liquid assets. Weighted average term to maturity is expected to be approximately 1 to 24 months, under normal circumstances. 48 Note: other liquid assets include, but are not limited to, securities issued by the government or quasi-government bodies, including but not limited to Khazanah, Cagamas, Danaharta, Danamodal and BNM, securities guaranteed by the government and private debt securities which have been accorded a rating of P1 by RAM or equivalent rating by other rating agencies. 51 40% to 60% of the Fund‟s NAV in quoted equity and equity-related securities; 40% to 60% of the Fund‟s NAV in fixed income securities (minimum P3 or BBB3 by RAM or equivalent rating by other rating agencies) and liquid assets; and Minimum 2% of the Fund‟s NAV in liquid assets. Minimum 70% of the Fund‟s NAV in equity and equity-related securities; and Minimum 2% of the Fund‟s NAV in liquid assets. 54 Minimum 70% of the Fund‟s NAV in quoted equity and equity-related securities; Maximum 30% of the Fund‟s NAV in fixed income securities (minimum P3 or BBB3 by RAM or equivalent rating by other rating agencies); and Minimum 5% of the Fund‟s NAV in liquid assets. 56 59 VersatileEXTRA DividendEXTRA TacticalEXTRA LCLAF Generally, at least 70% of the Fund‟s NAV in equity and equity-related securities, while maintaining a minimum of 50% in non-Malaysian equity; Minimum 10% of the Fund‟s NAV in fixed income securities (Malaysia); and Minimum 2% of the Fund‟s NAV in liquid assets. LLF Up to 100% of the Fund‟s NAV in short term deposits. 62 LREF Minimum 70% of the Fund‟s NAV in equity and equity-related securities; Maximum 28% of the Fund‟s NAV in fixed income securities; Maximum 15% of the Fund‟s NAV in structured products; and Minimum 2% of the Fund‟s NAV in cash or liquid assets 64 18 Libra Invest Berhad Master Prospectus 19 Fund Information Fund Name Asset Allocation SyariahEXTRA 40% to 60% of the Fund‟s NAV in quoted Shariah-compliant equities and equity-related securities; 40% to 60% of the Fund‟s NAV in sukuk (minimum P3 or BBB3 by RAM or equivalent rating by other rating agencies) and Islamic liquid assets; and Minimum 2% of the Fund‟s NAV in Islamic liquid assets. 67 Minimum 70% of the Fund‟s NAV in quoted Shariah-compliant equities and equity-related securities; and Minimum 2% of the Fund‟s NAV in Islamic liquid assets. 70 Minimum 70% of the Fund‟s NAV in sukuk; and Minimum 2% of the Fund‟s NAV in cash, Islamic deposits & other Islamic liquid assets. 73 100% of the Fund‟s NAV in short term Islamic deposits. ASnita ASnitaBOND Page(s) LSLF Series 2 Note: The Fund’s investment in Islamic deposits may be lower than 100% to allow for payment of fees and expenses as permitted under the Deed. Fund Name Performance Benchmark IncomeEXTRA 50% MSCI AC Asia Pacific ex-Japan and 50% Maybank 12-months fixed deposit rate (source: www.bloomberg.com) (Note 1) 42 EquityEXTRA FBM100 44 BondEXTRA Maybank 12-months fixed deposit rate 46 MoneyEXTRA Average repurchase agreement (Repo) rate on the short term money market instrument / deposits offered to the Fund 48 VersatileEXTRA The benchmark for VersatileEXTRA is VE benchmark. VE benchmark consists of 50% FBM100 and 50% Maybank 12-months fixed deposit rate (Note 1) 51 DividendEXTRA FBM100 54 TacticalEXTRA The benchmark for TacticalEXTRA is TE benchmark. TE benchmark consists of 50% FBM100 and 50% Maybank 12-months fixed deposit rate (Note 2) and Other Benchmarks # (Note 3) 56 LCLAF MSCI AC Asia Consumer Discretionary Index (source: www.bloomberg.com) 59 LLF Maybank Overnight Repo rate 62 LREF MSCI ACWI 64 SyariahEXTRA The benchmark for SyariahEXTRA is SE benchmark. SE benchmark consists of 50% FBM EMAS Shariah Index and 50% Maybank 12-months GIA-i rate (Note 1) 67 ASnita FBM EMAS Shariah Index 70 ASnitaBOND Maybank 6-months GIA-i Tier 1 Rate 73 LSLF Series 2 Maybank 1-month GIA-i Tier 1 Rate 75 75 Page(s) Note 1: Over the long term, equity asset allocation would range between 40%-60% of the Fund‟s NAV and fixed income/sukuk and cash would range between 40%-60% of the Fund‟s NAV. Therefore, the composite benchmark is a reflection of the Fund‟s average asset allocation over the long term of 50% of the Fund‟s NAV in equity and 50% of the Fund‟s NAV in fixed income/sukuk and cash. Note 2: Over the long term, equity asset allocation would range between 30%-70% of the Fund‟s NAV and fixed income and cash would range between 30%-70% of the Fund‟s NAV. Therefore, the composite benchmark is a reflection of the Fund‟s average asset allocation over the long term of 50% of the Fund‟s NAV in equity and 50% of the Fund‟s NAV in fixed income and cash. Libra Invest Berhad Master Prospectus 20 Note 3: 1) If the Fund invests more than 95% of the Fund‟s NAV in equities – 100% FBM100. 2) If the Fund invests more than 95% of the Fund‟s NAV in fixed income – 100% Maybank 12-months fixed deposit rate. # Investors can apply these benchmarks to assess the performance of the Fund according to such asset allocation. Unit Holders may contact the Management Company or visit our website at www.librainvest.com to obtain the most upto-date information on the performance benchmark. Please refer to Additional Information on page 155 on how to reach the Management Company. For IncomeEXTRA, LCLAF and LREF, please refer to www.bloomberg.com and www.reuters.com to obtain the performance benchmark. Fund Name Principal Risks IncomeEXTRA Market Risk risk resulting from changes in economic outlook. Unsystematic Risk risk that is specific to a company arising from changes in business variables that are unique to the company. It can be reduced through diversification, unlike systematic risk (or market risk) which is inherent in the entire market and cannot be diversified away. Country Risk risk that is specific to a country that the Fund invests in. Currency Risk risk resulting from fluctuation in foreign exchange rates. Credit/Default Risk risk that the issuer is unable to pay interest/profit due and/or the principal amount on time. Interest Rate Risk risk resulting from unforeseen movements in the direction of interest rates. Liquidity Risk risk that a security would have to be sold below its fair value due to low trading volume. Market Risk risk resulting from changes in economic outlook. Specific Risk risk resulting from changes to a particular company. Liquidity Risk risk that a security would have to be sold below its fair value due to low trading volume. Credit/Default Risk risk that the issuer is unable to pay interest/profit due and/or the principal amount on time. Liquidity Risk risk that a security would have to be sold below its fair value due to low trading volume. Inflation/Purchasing Power Risk risk that inflation would reduce the purchasing power of money. Interest Rate Risk risk resulting from unforeseen movements in the direction of interest rates. Credit/Default Risk risk that the issuer is unable to pay interest/profit due and/or the principal amount on time. Market Risk risk resulting from changes in economic outlook. Specific Risk risk resulting from changes to a particular company. Liquidity Risk risk that a security would have to be sold below its fair value due to low trading volume. Inflation/Purchasing Power Risk risk that inflation would reduce the purchasing power of money. Interest Rate Risk risk resulting from unforeseen movements in the direction of interest rates. EquityEXTRA BondEXTRA and MoneyEXTRA VersatileEXTRA and TacticalEXTRA Page(s) 38-41 Libra Invest Berhad Master Prospectus Fund Information Fund Name Principal Risks DividendEXTRA Market Risk risk resulting from changes in economic outlook. Specific Risk risk resulting from changes to a particular company. Liquidity Risk risk that a security would have to be sold below its fair value due to low trading volume. Currency Risk risk resulting from fluctuation in foreign exchange rates. Country Risk risk that is specific to a country invested in. Liquidity Risk risk that a security would have to be sold below its fair value due to low trading volume. Market Risk risk resulting from changes in economic outlook. Specific Risk risk resulting from changes to a particular company. Sectorial Risk risk resulting from a downturn in specific sectors. Financial Institution Risk risk that the licensed financial institution defaults on its obligations to pay back deposit and interest on demand. Market Risk risk resulting from changes in economic outlook. Country Risk risk that is specific to a country invested in. Currency Risk risk resulting from fluctuation in foreign exchange rates. Sectorial Risk risk resulting from a downturn in specific sectors. Specific Risk risk resulting from changes to a particular company. Derivatives Risk risk resulting from financial contracts whose value derived from underlying asset, reference rate or index. Interest Rate Risk risk resulting from unforeseen movements in the direction of interest rates. Credit/Default Risk risk that the issuer is unable to pay profit due and/or the principal amount on schedule. Liquidity Risk risk that a security would have to be sold below its fair value due to low trading volume. LCLAF LLF LREF Page(s) 38-41 21 Libra Invest Berhad Master Prospectus Fund Information Fund Name SyariahEXTRA Principal Risks Page(s) Credit/Default Risk risk that the issuer is unable to pay profit due and/or the principal amount on schedule. Market Risk risk resulting from changes in economic outlook. Specific Risk risk resulting from changes to a particular company. Liquidity Risk risk that a Shariah-compliant security would have to be sold below its fair value due to low trading volume. Inflation/Purchasing Power Risk risk that inflation would reduce the purchasing power of money. risk resulting from unforeseen movements in the direction of interest rates. Interest Rate Risk ASnita ASnitaBOND Note: The movement in interest rate may affect value of investment, it does not, however, suggest that the Fund invests in interest bearing instruments/deposit. Reclassification of Shariah Status Risk risk that a security may be classified from Shariahcompliant to Shariah non-compliant in the 6 monthly review. Specific Risk risk resulting from changes to a particular company. Liquidity Risk risk that a security would have to be sold below its fair value due to low trading volume. Reclassification of Shariah Status Risk risk that a security may be classified from Shariahcompliant to Shariah non-compliant in the 6 monthly review. Credit/Default Risk risk that the issuer is unable to pay profit due and/or the principal amount on time. Liquidity Risk risk that a security would have to be sold below its fair value due to low trading volume. Inflation/Purchasing Power Risk risk that inflation would reduce the purchasing power of money. risk resulting from unforeseen movements in the direction of interest rates. Interest Rate Risk LSLF Series 2 Note: The movement in interest rate may affect value of investment, it does not, however suggest that the Fund invests in interest bearing instruments/deposits. Market Risk risk resulting from changes in economic outlook. Financial Institution Risk risk that licensed financial institution defaults on its obligations to pay back deposit and/or profit when due. Interest Rate Risk risk resulting from changes in the interest rate environment that would affect the performance of the Fund. 38-41 22 Libra Invest Berhad Master Prospectus Potential Price Fluctuation Suggested Investment Horizon for Investors Financial Year End IncomeEXTRA Medium 3 to 5 years 31 December EquityEXTRA Relatively High 3 to 5 years 31 December BondEXTRA Low to Medium 3 to 5 years 31 December Relatively Very Low 1 to 12 months 31 December VersatileEXTRA Medium to High 3 to 5 years 31 December DividendEXTRA Medium 3 to 5 years 31 December TacticalEXTRA Relatively High 3 to 5 years 31 December High 3 to 5 years 31 December Relatively Very Low 1 to 12 months 30 September LREF Medium to High Above 2 years 30 September SyariahEXTRA Medium to High Above 5 years 31 December ASnita Relatively High Above 5 years 31 December ASnitaBOND Relatively Low 3 to 5 years 31 December LSLF Series 2 Relatively Very Low 1 to 12 months 30 September Fund Name MoneyEXTRA LCLAF LLF 23 Page(s) - Libra Invest Berhad Master Prospectus 24 Fund Information Fund Name IncomeEXTRA EquityEXTRA Investor’s Profile Investors seeking for steady absolute capital growth and income* over the medium to long term horizon at a moderate level of risk. Relatively aggressive investors aiming for potentially higher returns that outperform the FBM100; Medium to long term investors who may not have the time or expertise to monitor investments in a risky asset class; Investors who have spare cash with no immediate use; and Investors who are ready to switch back into non-equity fund. BondEXTRA MoneyEXTRA VersatileEXTRA Long term investors who are seeking to invest in high yield fixed income securities with commensurate level of risk. Investors who are looking for a safe investment vehicle to manage their short term cash holdings more effectively. Investors who place high importance in ensuring that the monetary value of their investment retains its purchasing power through steady absolute capital growth and income over the medium to long term horizon at a moderate level or risk; and Investors who are seeking to invest in a balanced portfolio of equities and fixed income securities, but do not have the time or expertise to monitor their investment or to make the tactical call to enter or swap one asset class to the other at the appropriate times. DividendEXTRA TacticalEXTRA LCLAF LLF Fairly conservative investors aiming for equity returns but with less volatility than a growth fund; Medium to long term investors who seek to participate in a diversified portfolio of dividend paying stocks; Investors who have spare cash with no immediate use; and Investors who are ready to switch back into non-equity fund/equity fund in anticipation of a change in market condition. Page(s) - Investors who want to maximise returns attributable to asset allocation; Investors who are relatively aggressive aiming for absolute capital growth and return through an active investment approach over the long term horizon, at a moderate to high level of risk; and Investors who are seeking to invest in equities and fixed income securities, but do not have the time or expertise to monitor actively their investments or to shift allocation between the asset classes at the appropriate times. Investors who wish to participate in a well diversified investment portfolio in the Asia Pacific markets; Investors who are seeking capital growth and return but do not have the time to monitor their investments in a risky asset class; Investors with medium to long term investment horizon; and Investors who have spare cash with no immediate use. Investors who seek regular income whilst maintaining capital stability and have a short term investment horizon with low risk tolerance. * Distribution of income will primarily be done by way of reinvestment into additional Units. Kindly refer to the distribution policy at page 123 of this Master Prospectus for full details. Note: We regard 1-3 years as medium term and above 3 years as long term. Libra Invest Berhad Master Prospectus Fund Information Fund Name LREF SyariahEXTRA ASnita ASnitaBOND LSLF Series 2 Investor’s Profile Investors who seek capital growth over a medium to long term investment horizon; and Investors who wish to participate in the medium to long term capital growth potential of companies engaged in the exploration for and the development, production and marketing of resources products such as energy, minerals, agriculture and related industries. Investors who place high importance in ensuring that the monetary value of their investment retains its purchasing power, through steady absolute capital growth and income, over the medium to long term period, at a moderate level or risk; and Investors who are seeking to invest in a balanced portfolio of quoted Shariahcompliant equities and sukuk, but do not have the time or expertise to monitor their investment or to make the tactical call to enter or swap one asset class to the other at the appropriate times. Investors who are looking for a well diversified investment portfolio in Shariahcompliant equities and equity-related securities with the potential of providing reasonable return, through both capital appreciation and income distribution on their investment, over a long period of time; and Investors who seek to invest in equities and equity-related securities that comply with Shariah requirements but do not have the time or skills to undertake fundamental research and to gather relevant information to guide their investment decision. Conservative investors who are looking for a relatively stable Shariah-compliant investment with potentially higher returns than traditional bank deposits; Short to medium term investors seeking exposure to the wholesale sukuk market which is not easily accessible to retail investors; Investors who need to use their money only in the near term or as an emergency fund; and Investors who want to enjoy possible above-average Maybank GIA rate return while waiting for an opportunity to invest into Shariah-compliant equity fund. Investors who seek regular income, have a short term investment horizon and have a low risk tolerance. Note: We regard 1-3 years as medium term and above 3 years as long term. Page(s) - 25 Libra Invest Berhad Master Prospectus Distribution Policy Units in Circulation as at 10 February 2016 IncomeEXTRA Half yearly (if any) 75,247,030.10 EquityEXTRA Annually (if any) 44,305,676.67 BondEXTRA Half yearly (if any) 49,862,585.57 MoneyEXTRA Quarterly (if any) 306,191,167.85 VersatileEXTRA Annually (if any) 1,638,896.57 DividendEXTRA Annually (if any) 21,091,015.09 TacticalEXTRA Incidental 52,284,730.09 LCLAF Annually (if any) 67,993,498.60 LLF Quarterly (if any) 109,349,108.40 Incidental 17,757,484.56 SyariahEXTRA Annually (if any) 71,657,393.21 ASnita Annually (if any) 88,165,009.41 ASnitaBOND Annually (if any) 160,093,954.51 LSLF Series 2 Monthly (if any) Nil Fund Name LREF Page(s) - 26 Libra Invest Berhad Master Prospectus 27 Fees, Charges and Expenses The table below describes the charges that you may incur DIRECTLY when you purchase or redeem Units of the Funds. Charges DIRECTLY Incurred Sales Charge This is the maximum sales charge permitted by each distribution channels. Fund Name Non-EPF Member’s Investment Scheme EPF Member’s Investment Scheme Page(s) % of the NAV per Unit IncomeEXTRA 5* Not applicable EquityEXTRA 5* 3 BondEXTRA 5* 3 MoneyEXTRA Nil Nil VersatileEXTRA 5* Not applicable DividendEXTRA 5* 3 TacticalEXTRA 5* 3 LCLAF 5* Not applicable LLF Nil Not applicable LREF 5* Not applicable SyariahEXTRA 5* 3 Asnita 5* Not applicable ASnitaBOND 5* 3 LSLF Series 2 Nil Not applicable 114 *The sales charge is negotiable. Conversion Facility: Unit Holders can avail themselves to the oneINVEST / oneINVEST Islamic switch option between equity Funds and non-equity Funds by paying a one-off conversion fee of 3% of the NAV per Unit less the sales charge paid earlier. Note: Switching from a Shariah-compliant Fund to a conventional Fund is not encouraged especially for Muslim Unit Holders. Libra Invest Berhad Master Prospectus 28 Conversion facility is only applicable for the following Funds: i. EquityEXTRA ii. DividendEXTRA iii. ASnitaBOND iv. ASnita EPF Member’s Investment Scheme As at 10 February 2016, EPF members may invest in the following EPF-approved Funds: ASnitaBOND, BondEXTRA, DividendEXTRA, EquityEXTRA, MoneyEXTRA, SyariahEXTRA and TacticalEXTRA. The list may be revised by EPF from time to time. The above is only applicable to investors who purchase Units via the EPF member‟s investment scheme and is subject to changes by EPF from time to time. Please refer to the Manager for the latest list of Funds approved by EPF for investment. GST With effect from 1 April 2015, a Unit Holder or the Fund (as the case may be) shall pay a GST at the rate of 6% which may be imposed by the relevant authority in respect of any fees, charges or expenses payable by virtue of the Deed for the respective Fund. Investors should be aware that such fees, charges and expenses referred to or quoted in this Master Prospectus and the Deed are referred to or quoted as being exclusive of GST. Libra Invest Berhad Master Prospectus 29 Fees, Charges and Expenses The table below describes the charges that you may incur DIRECTLY when you purchase or redeem Units of the Funds. Charges DIRECTLY Incurred Fund Name Repurchase Charge Dilution Fee/ Transaction Cost & Transfer Fee Other Charges Nil There are no other charges (except charges levied by banks on remittance of money) payable directly by investors when purchasing or redeeming Units. Page(s) IncomeEXTRA EquityEXTRA BondEXTRA MoneyEXTRA VersatileEXTRA DividendEXTRA TacticalEXTRA Nil LCLAF LLF LREF 114 SyariahEXTRA Asnita ASnitaBOND LSLF Series 2 The table below describes the fees and expenses that you may incur INDIRECTLY when you invest in the Funds. Fees INDIRECTLY Incurred Fund Name Annual Management Fee IncomeEXTRA 1.15% p.a. Fund‟s NAV of the EquityEXTRA 1.65% p.a. Fund‟s NAV of the BondEXTRA 1.00% p.a. Fund‟s NAV of the MoneyEXTRA 0.50% p.a. Fund‟s NAV of the VersatileEXTRA 1.50% p.a. Fund‟s NAV of the Annual Trustee Fee 0.08% p.a. of the Fund‟s NAV, subject to a minimum of RM30,000.00 p.a. 0.10% p.a. of the Fund‟s NAV, subject to a minimum of RM35,000.00 p.a. 0.07% p.a. of the Fund‟s NAV, subject to a minimum of RM18,000.00 p.a. 0.07% p.a. of the Fund‟s NAV, subject to a minimum of RM18,000.00 p.a. 0.07% p.a. of the Fund‟s NAV List of expenses directly related to the Fund Expenses directly related to the Funds include auditor fees, brokerage commission/fees, subcustodian fee, tax and duties imposed by the authorities. Valuation fees, cost for modification of deed, cost of production and distribution of Funds‟ reports, cost of convening a Unit Holders‟ meeting, other than those incurred by or for the benefit of the Management Company or Trustee, are also direct expenses of the Funds. Page(s) 115-116 Libra Invest Berhad Master Prospectus Fees, Charges and Expenses The table below describes the fees and expenses that you may incur INDIRECTLY when you invest in the Funds. Fees INDIRECTLY Incurred Fund Name Annual Management Fee DividendEXTRA 1.50% p.a. Fund‟s NAV of the TacticalEXTRA 1.50% p.a. Fund‟s NAV of the Annual Trustee Fee List of expenses directly related to the Fund Page(s) 0.07% p.a. of the Fund‟s NAV (excluding foreign custodian fee) 0.07% p.a. of the Fund‟s NAV, subject to a minimum fee of RM18,000.00 p.a LCLAF 1.70% p.a. Fund‟s NAV of the 0.08% p.a. of the Fund‟s NAV LLF 0.30% p.a. Fund‟s NAV of the 0.02% p.a. of the Fund‟s NAV 0.08% per annum of the Fund‟s NAV, subject to a minimum of RM18,000 per annum (excluding foreign custodian fees) LREF 1.75% p.a. Fund‟s NAV of the SyariahEXTRA 1.50% p.a. Fund‟s NAV of the ASnita 1.50% p.a. Fund‟s NAV of the ASnitaBOND 1.15% p.a. Fund‟s NAV of the 0.07% p.a. of the Fund‟s NAV LSLF Series 2 0.30% p.a. Fund‟s NAV of the 0.02% p.a. of the Fund‟s NAV 0.06% p.a. of the Fund‟s NAV 0.10% p.a. of the Fund‟s NAV, subject to a minimum of RM50,000.00 p.a. Expenses directly related to the Funds include auditor fees, brokerage commission/fees, subcustodian fee, tax and duties imposed by the authorities, valuation fees, cost for modification of deed, cost of production and distribution of Funds‟ reports, cost of convening a Unit Holders‟ meeting, and any other than those expenses incurred by or for the benefit of the Management Company or Trustee, are also direct expenses of the Funds. 115-116 Note: The above fees and charges are exclusive of GST payable by a Unit Holder or the Fund (as the case may be). 30 Libra Invest Berhad Master Prospectus 31 Fees, Charges and Expenses Fund Name Other fees payable indirectly by an investor Custodian Fee IncomeEXTRA Note 1 EquityEXTRA - BondEXTRA - MoneyEXTRA - VersatileEXTRA Note 2 DividendEXTRA Note 3 TacticalEXTRA Nil LCLAF LLF Note 3 - LREF Note 3 SyariahEXTRA - ASnita - ASnitaBOND - LSLF Series 2 - Rebate & Soft Commission Page(s) The Manager will retain soft commissions received from stockbrokers, provided they are of demonstrable benefit to the Unit Holders. Such soft commissions may take the form of goods and services such as data and quotation services, computer software incidental to the management of the Funds and investment related publications. Rebates, if any, will be directed to the account of the Funds. 116-117 Custodian Fee Note 1: IncomeEXTRA Safekeeping fee is up to 0.06% of the NAV of the foreign portfolio according to the country which the Fund invests in. Transaction fee is up to USD55 per transaction according to the country which the Fund invests in. The custodian fee will be paid to the custodian, Standard Chartered Bank (Malaysia) Berhad for investments which are made overseas. Note 2: VersatileEXTRA Safekeeping fee is up to 0.035% of the NAV of the foreign portfolio according to the country which the Fund invests in. Transaction fee is up to USD30 per transaction according to the country which the Fund invests in. The custodian fee will be paid to the custodian, Standard Chartered Bank (Malaysia) Berhad for investments which are made overseas. Note 3: DividendEXTRA, LCLAF and LREF The custodian fee payable is subject to an agreement with the custodian and will depend on the number of transaction carried out and the place at which such transaction are effected. The custodian fee will be paid to the custodian, for investments which are made overseas. Libra Invest Berhad Master Prospectus 32 Transaction Information Fund Name Minimum initial investment Minimum additional investment (RM) Regular (RM) Non-regular (RM) 5,000.00 200.00 1,000.00 Minimum liquidation Minimum transfer Minimum balance Page(s) 5,000 5,000 121 5,000 50,000 Units IncomeEXTRA EquityEXTRA BondEXTRA MoneyEXTRA 2,000 VersatileEXTRA DividendEXTRA TacticalEXTRA LCLAF LLF 100,000.00 Not applicable 50,000.00 10,000 5,000.00 200.00 1,000.00 2,000 100,000.00 Not applicable 5,000.00 5,000 LREF SyariahEXTRA ASnita ASnitaBOND LSLF Series 2 The minimum transaction amount as specified above may be reduced by the Manager from time to time at its absolute discretion. Libra Invest Berhad Master Prospectus 33 Transaction Information Fund Name IncomeEXTRA EquityEXTRA BondEXTRA MoneyEXTRA Liquidation Notice / Frequency For all Funds, Units may be liquidated on any Business Day. There is no limit as to frequency of liquidation transactions. Liquidation notice for MoneyEXTRA is one (1) Business Day prior to liquidation (T-1 day). There is no limit as to frequency of liquidation transactions. VersatileEXTRA DividendEXTRA TacticalEXTRA LCLAF LLF LREF SyariahEXTRA ASnita ASnitaBOND LSLF Series 2 For all Funds, Units may be liquidated on any Business Day. There is no limit as to frequency of liquidation transactions. Liquidation Proceeds Transfer Facility Switching Facility Minimum Switching Payments are made within ten (10) calendar days upon receipt of the duly completed original liquidation form by the Management Company. Nil Nil Note 1 Note 2 Nil Nil The Management Company will use best efforts to make payment for MoneyEXTRA on the next Business Day (T+1 day). Nil Nil Nil Nil Note 1 Note 2 Payments are made within ten (10) calendar days upon receipt of the duly completed original liquidation form by the Management Company. The Management Company will use best efforts to make payment for LLF on the next Business Day (T+1 day). Payments are made within ten (10) calendar days upon receipt of the duly completed original liquidation form by the Management Company. The Management Company will use best efforts to make payment for LSLF Series 2 on the next Business Day (T+1 day). Transfer between individual account and corporate account is not allowed. Page(s) 121-122 Nil Nil Note 1 Note 2 Nil Nil Note 1: This is only offered to Active Accounts of oneINVEST / oneINVEST Islamic strategy with unlimited free switches between equity Funds and non-equity Funds. Switching from Shariah-compliant Funds to a conventional Fund is not encouraged especially for Muslim Unit Holders. Note 2: This is only applicable to oneINVEST / oneINVEST Islamic investors. The minimum Units allowed for switching is 5,000 units, or such other limit at the Management Company‟s discretion. Libra Invest Berhad Master Prospectus 34 Transaction Information Fund Name Cooling-Off Period Page(s) IncomeEXTRA EquityEXTRA BondEXTRA MoneyEXTRA VersatileEXTRA DividendEXTRA TacticalEXTRA LCLAF LLF Within six (6) Business Days commencing from the date of receipt of the application by the Management Company – full refund. Applicable for initial investment by investors in any funds managed by the Management Company for the first time. 122 Not applicable to corporate/institutional investors, staff of the Management Company and a person registered with a body approved by the SC to deal in unit trusts. LREF SyariahEXTRA ASnita ASnitaBOND LSLF Series 2 Fund Name Unclaimed Moneys Policy Page(s) Unpresented cheques for payment of liquidation requests, if not reinvested shall be dealt with in accordance with the provisions of the Unclaimed Moneys Act, 1965. 123 IncomeEXTRA EquityEXTRA BondEXTRA MoneyEXTRA VersatileEXTRA DividendEXTRA TacticalEXTRA LCLAF LLF LREF SyariahEXTRA ASnita ASnitaBOND LSLF Series 2 Libra Invest Berhad Master Prospectus Other Information The Deed constituting the Funds was entered into between the Management Company and the Trustee. Fund Name Deed(s) Date Trustee for the Fund IncomeEXTRA Deed: 25 August 1999 First Supplemental Deed: 26 August 2002 Second Supplemental Deed: 23 September 2002 Supplemental Master Deed: 4 March 2009 Second Supplemental Master Deed: 6 May 2011 Third Supplemental Master Deed: 2 June 2011 Fourth Supplemental Master Deed: 1 April 2015 Maybank Trustees Berhad EquityEXTRA Deed: 25 August 1999 First Supplemental Deed: 26 August 2002 Second Supplemental Deed: 23 September 2002 Supplemental Master Deed: 4 March 2009 Second Supplemental Master Deed: 6 May 2011 Third Supplemental Master Deed: 2 June 2011 Fourth Supplemental Master Deed: 1 April 2015 Maybank Trustees Berhad BondEXTRA Deed: 25 August 1999 Second Supplemental Deed: 23 September 2002 Supplemental Master Deed: 4 March 2009 Second Supplemental Master Deed: 6 May 2011 Third Supplemental Master Deed: 2 June 2011 Fourth Supplemental Master Deed: 1 April 2015 Maybank Trustees Berhad MoneyEXTRA Deed: 25 August 1999 Second Supplemental Deed: 23 September 2002 Supplemental Master Deed: 4 March 2009 Second Supplemental Master Deed: 6 May 2011 Third Supplemental Master Deed: 2 June 2011 Fourth Supplemental Master Deed: 1 April 2015 Maybank Trustees Berhad VersatileEXTRA Deed: 25 August 1999 Second Supplemental Deed: 23 September 2002 Supplemental Master Deed: 4 March 2009 Second Supplemental Master Deed: 6 May 2011 Third Supplemental Master Deed: 2 June 2011 Fourth Supplemental Master Deed: 1 April 2015 Maybank Trustees Berhad DividendEXTRA Master Deed: 3 March 2005 First Supplemental Deed: 9 May 2007 Second Supplemental Deed: 30 April 2008 Third Supplemental Master Deed: 4 March 2009 Fourth Supplemental Master Deed: 6 May 2011 Fifth Supplemental Master Deed: 17 December 2013 Sixth Supplemental Master Deed: 1 April 2015 TacticalEXTRA Deed: 25 August 1999 Third Supplemental Deed: 3 March 2005 Supplemental Master Deed: 4 March 2009 Second Supplemental Master Deed: 6 May 2011 Third Supplemental Master Deed: 2 June 2011 Fourth Supplemental Master Deed: 1 April 2015 LCLAF Master Deed: 3 March 2005 First Supplemental Deed: 9 May 2007 Second Supplemental Deed: 30 April 2008 Third Supplemental Master Deed: 4 March 2009 Fourth Supplemental Master Deed: 6 May 2011 Fifth Supplemental Master Deed : 17 December 2013 Sixth Supplemental Master Deed: 1 April 2015 CIMB Commerce Trustee Berhad Maybank Trustees Berhad CIMB Commerce Trustee Berhad 35 Libra Invest Berhad Master Prospectus Fund Name Deed(s) Date Trustee for the Fund LLF Deed: 23 December 2008 Supplemental Deed: 6 May 2011 Second Supplemental Deed: 17 December 2013 Third Supplemental Deed: 1 April 2015 CIMB Commerce Trustee Berhad LREF Deed: 21 May 2010 Supplemental Deed: 6 May 2011 Second Supplemental Deed: 15 May 2013 Third Supplemental Deed: 1 April 2015 CIMB Commerce Trustee Berhad SyariahEXTRA Deed under Abrar Unit Trust Management Berhad: 7 February 1996 Supplemental Deed under Abrar Unit Trust Management Berhad: 2 October 1998 Deed under Libra Invest Berhad: 9 August 2002 Second Supplemental Deed: 3 October 2002 Supplemental Master Deed: 4 March 2009 Second Supplemental Master Deed: 6 May 2011 Third Supplemental Master Deed : 2 June 2011 Fourth Supplemental Master Deed: 1 April 2015 Maybank Trustees Berhad ASnita Deed under Hijrah Unit Trust Management Berhad: 30 April 1998 Deed under Libra Invest Berhad: 2 May 2003 First Supplemental Deed: 2 January 2004 Supplemental Master Deed: 4 March 2009 Second Supplemental Master Deed: 6 May 2011 Third Supplemental Master Deed : 2 June 2011 Fourth Supplemental Master Deed: 1 April 2015 Maybank Trustees Berhad ASnitaBOND Master Deed: 3 March 2005 First Supplemental Deed: 9 May 2007 Second Supplemental Deed: 30 April 2008 Third Supplemental Master Deed: 4 March 2009 Fourth Supplemental Master Deed: 6 May 2011 Fifth Supplemental Deed: 17 December 2013 Sixth Supplemental Master Deed: 1 April 2015 CIMB Islamic Trustee Berhad LSLF Series 2 Deed: 8 September 2014 First Supplemental Deed: 15 January 2016 CIMB Islamic Trustee Berhad 36 Libra Invest Berhad Master Prospectus 37 Avenue for advice available to prospective investors. Fund Name Avenue for Advice Page(s) You may contact us should you have any doubts about the information in this Master Prospectus or would like to know more about investing in any of the Funds, please call Libra Investor Care at (603) 2089 1883 or you may e-mail us at [email protected] 155 IncomeEXTRA EquityEXTRA BondEXTRA MoneyEXTRA VersatileEXTRA DividendEXTRA TacticalEXTRA LCLAF LLF LREF SyariahEXTRA ASnita ASnitaBOND LSLF Series 2 There are fees and charges involved and investors are advised to consider them before investing in the Funds. Unit prices and distributions payable, if any, may go down as well as up. For information concerning certain risk factors which should be considered by prospective investors, see RISK FACTORS commencing on page 38 Past performance of the Funds is not an indication of future performance. Investors who intend to finance an investment in a Shariah-compliant fund, or for that matter any Shariah-compliant investment, are advised to seek for Islamic financing to finance their investment. Libra Invest Berhad Master Prospectus 38 5. RISK FACTORS The risk management team works in tandem with the investment team to ensure the level of risk is suitable to the Funds‟ overall performance targets. The Funds are constructed and managed within the pre-set investment guidelines i.e. the risk budgets. The risk mitigation strategies adopted by the Manager includes diversification, due diligence, reviews and hedging. The Funds may experience any combination of the risks listed below depending on the types of securities in which the Fund invests. Generally, the specific risks of a fund that invests primarily in equities are market risk, specific risk and liquidity risk, whilst the specific risks of a fund that invests primarily in fixed income/sukuk are interest rate risk, credit/default risk, inflation/purchasing power risk and liquidity risk. Risks specific to money market funds are financial institution risk and interest rate risk. With respect to interest rate risk, it should be noted that interest rate is a general indicator that will have an impact on the management of Funds regardless of whether it is a Shariah-compliant fund or otherwise. This does not in any way suggest that SyariahEXTRA, ASnita, ASnitaBOND and LSLF Series 2 will invest in conventional financial instruments. All investments carried out for SyariahEXTRA, ASnita, ASnitaBOND and LSLF Series 2 are in accordance with the Shariah requirements. The Funds that invest in foreign markets may also be exposed to currency risk and country risk. General risks: Risk of Non-Compliance The Fund‟s objective may be affected should the Management Company and the fund managers not adhere to the Fund‟s investment mandate. To maintain the Fund‟s integrity, sufficient internal policies, controls and monitoring must be in place to protect the interests of Unit Holders. In this instance, the compliance unit of the Management Company would oversee the operations of the Fund to reduce and minimise instances of non-compliance with internal policies and the relevant laws, regulations and guidelines. Fund Manager Risk The performance of the Fund depends on the experience, knowledge and expertise of the fund manager and the investment strategies adopted. The risk remains that the securities which the fund manager selected will not perform as expected. This could cause the Fund‟s returns to lag behind similar funds‟ returns. Returns Not Guaranteed As a result of the risk elements described herein, the returns from the Fund are not guaranteed. Investment returns and the principal value will vary. When sold, an investment may be worth more or less than when purchased. Loan Financing Risk Investors must be aware of the inherent risk involved with loan financing of the Fund, which would include the ability to pay instalments, which may be affected by unforeseen circumstances such as an increase in interest rate and the ability to provide additional collateral should the value of investment fall below a certain level. Shariah-compliant unit trust fund‟s investors are advised to seek for Islamic financing to finance their acquisition. Political Risk The investments of the Fund may be adversely affected by political instability as well as exchange controls, changes in taxation, foreign investment policies, restriction on repatriation of investments and other restrictions and controls which may be imposed by the relevant authorities in the relevant countries. The Manager shall implement a stringent screening process in respect of the country and region prior to investing to assess the impact of such risk to the performance of the investments. Regulatory Risk Any changes in national or economic policies or regulations may have an adverse effect on the capital markets and could sequentially have an impact on the investments of the Fund. To mitigate the impact of regulatory risk, the Manager will seek to keep abreast of regulatory developments that may affect specific investments of the Fund while attempting to pre-empt any regulatory changes that may adversely impact the investments of the Fund. Libra Invest Berhad Master Prospectus 39 Specific Risks in Equity Funds: Market Risk This is a class of risk that inherently exists in an economy and cannot be avoided by any business or company. It is usually due to changes in the economic outlook and affects the confidence of the broad market. Market risk cannot be removed from an investment portfolio by diversification. Investors should, therefore, note that the performance of the Fund might go up or down in accordance with market movement. Specific Risk This class of risk represents the risk unique to a particular company due to company-specific factors such as capital structure, quality of management, nature of business, and others. This risk may be greatly reduced through diversification. The fund manager‟s expertise will also help to reduce exposure to specific risk through proper research prior to sector and stock selection, and by adopting defensive stock selection strategies at appropriate times. Liquidity Risk In a weak and thinly traded market where the transaction volume is low, the investments in the Fund may not be liquidated in the desired amounts without causing the market price of the securities to fall sharply. The fund manager aims to reduce liquidity risk by investing mainly in companies with large market capitalisation of not less than RM200 million, and are fairly liquid. Currency Risk The Funds that invest abroad are subject to currency risk as some of their investments will be denominated in foreign currencies. The value of these Funds as expressed in RM will fluctuate in tandem with the changes in the exchange rate between the RM and other currencies. This risk can be mitigated by investing in a portfolio of assets with diverse foreign currencies to avoid over-concentration in a single foreign currency. The Funds may also seek to reduce this risk by hedging the currency exposure. Country Risk The Fund‟s exposure in foreign investments may be affected by risks specific to the country which it invests in. Such risks may include changes in the general political and economic conditions, government policies, tax regime and currency fluctuations. These changes can adversely affect operating profit as well as the value of the assets that the Fund has invested in. Diversifying the Fund‟s exposure into various foreign markets will mitigate the country risk of the portfolio. Reclassification of Shariah Status Risk This risk refers to the currently held Shariah-compliant securities in the portfolio of Shariah-compliant Funds that may be reclassified to be Shariah non-compliant upon review of the securities by SACSC performed twice yearly. If this occurs, the fund manager will take the necessary steps to dispose of such securities. Derivatives Risk The Fund may use derivative instruments as part of its investment strategy. Derivative instruments are financial contracts whose value depends on, or are derived from, the value of an underlying asset, reference rate or index. The derivative instruments may include futures, options, warrant and swaps and the underlying assets, rates and indices may include bonds/sukuk, stocks, interest rates, currency exchanges rates, and bond/sukuk, stock and commodity indices. These derivatives allow for the use of leverage which may increase the volatility in the NAV and the NAV per Unit of the Fund, if the market goes against the position of the derivatives. The Management Company may use derivatives such as options and futures for hedging existing positions, efficient portfolio management and/or to meet the investment objective of the Fund. There are various risks associated with derivatives use. The process by which the Management Company assess, monitors and controls some of the more important types of risk such as market risk, liquidity risk and currency risk which have a direct influence on the Fund‟s NAV are mentioned in this section. The Manager will ensure that the exposure to derivative instruments will NOT at any time exceed 100% of the Fund‟s NAV at all times. The Fund‟s investments in derivatives (if any) shall always be subject to the restrictions stipulated under the sub-heading, investment spread limits; sub-paragraph of investment restriction on derivatives. The types of derivatives that may be used by the Management Company will include those traded on an exchange such as Bursa Malaysia and those exchanges approved by the relevant regulatory authority. For Shariah-compliant Funds, such derivatives must comply with Shariah. Libra Invest Berhad Master Prospectus 40 Sectorial Risk This is a risk that is associated with a downturn in demand for goods and services offered by a particular sector in which the Fund invests in. Typically, this is linked to adverse economic conditions. Credit/Default Risk Credit risk arises when there is a possibility that an issuer is unable to pay interest/profit due and/or the principal on time. The fund manager expects to be able to reduce credit risk substantially by conducting thorough credit analysis before investment, by investing mainly in issues with at least a P3 by RAM or equivalent rating by other rating agencies for short term papers and BBB by RAM or equivalent rating by other rating agencies for long term bonds/sukuk and by diversifying the portfolio. Investors are to note that some of the equity funds are permitted to invest in bonds/sukuk and also placement of cash with financial institutions for diversification purposes. The credit rating of the bond/sukuk issuers and the financial institutions may be downgraded by the rating agencies due to credit default. As a result, it may affect the performance of the Funds. Counterparty Risk There is a risk that a financial institution may default on its repayment/payment obligations with regard to repurchase agreements and other contracts, or derivative investments made by the Fund. The Management Company aims to mitigate this risk by performing fundamental credit research and analysis to determine the creditworthiness of its counterparty, and thereby impose careful credit limit as a precautionary step to limit any loss that may arise directly or indirectly as a result of the defaulted transaction. Any default by the counterparty would affect the NAV of the Fund. In mitigating this risk, the Management Company will invest in the instrument via counterparties such as banks or financial institutions with a high credit rating, at least „A‟ by Standard & Poor‟s or its equivalent by any other reputable domestic or global rating agency. Thereafter, the Management Company will constantly monitor the credit rating of the counterparty. If the rating of the counterparty falls below the minimum requirements, the Management Company may look to sell/redeem the instrument, or replace with another instrument with a similar underlying asset or another instrument that meets the objective of the Fund. Specific Risks in Fixed Income/Sukuk Funds: Market Risk This is a class of risk that inherently exists in an economy and cannot be avoided by any business or company. It is usually due to changes in the economic outlook and affects the confidence of the broad market. Market risk cannot be removed from an investment portfolio by diversification. Investors should, therefore, note that the performance of the Fund might go up or down in accordance with market movement. Credit/Default Risk Credit risk arises when there is a possibility that an issuer is unable to pay interest/profit due and/or the principal on time. The fund manager expects to be able to reduce credit risk substantially by conducting thorough credit analysis before investment, by investing mainly in issues with at least a P3 by RAM or equivalent rating by other rating agencies for short term papers and BBB by RAM or equivalent rating by other rating agencies for long term bonds/sukuk and by diversifying the portfolio. Interest Rate Risk This risk relates to unforeseen movements in the direction of interest rates. Anticipating interest rate movements is a critical element in determining the portfolio maturity structure of the Fund. The manager‟s top-down investment approach ensures that a thorough evaluation of macro-economic variables is undertaken before an interest rate strategy is implemented. In addition, it is also intended to have a sufficiently diverse range of maturities of fixed income instruments that the Fund Invests in. The above interest rate is a general indicator that will have an impact on the management of the Fund regardless whether it is a Shariah-compliant unit trust fund or otherwise. It does not in any way suggest that the Fund will invest in conventional financial instruments. All the investments carried out for the Fund are in accordance with Shariah requirements. Liquidity Risk Liquidity risk is defined as the ease with which a security can be sold at or near its fair value depending on the volume traded on the market. Should a security become illiquid, it may be sold at a discount to its fair value, thus lowering that value of the Fund‟s investments and subsequently the value of Unit Holders‟ investments. To minimise liquidity risk, the Fund maintains sufficient level of liquid assets to meet anticipated payments and liquidation of units by Unit Holders. Libra Invest Berhad Master Prospectus 41 Inflation/Purchasing Power Risk Inflation reduces the purchasing power of money. In an inflationary environment, fixed income securities/sukuk are exposed to higher inflation risk than inflation-linked securities. By investing mainly in short term issues, the interest rate structure of the portfolio can be adjusted quickly in response to any perceived significant change in the inflation rate. Derivatives Risk The Fund may enter into derivative instruments, which are financial contracts whose value depends on, or is derived from, the value of an underlying asset, reference rate or index. The derivative instruments may include futures, options, warrants and swaps and the underlying assets, rates and indices may include bonds/sukuk, stocks, interest rates, currency exchanges rates, and bond/sukuk, stock and commodity indices. These derivatives allow for the use of leverage which may increase the volatility in the NAV and the NAV per Unit of the Fund, if the market goes against the position of the derivatives. The Management Company may use derivatives such as options and futures for hedging existing positions, efficient portfolio management and/ or to meet the investment objective of the Fund. There are various risks associated with derivatives use. The process by which the Management Company assess, monitors and controls some of the more important types of risk such as market risk, liquidity risk and currency risk which have a direct influence on the Fund‟s NAV are mentioned in this section. The Manager will ensure that the exposure to derivative instruments will NOT at any time exceed 100% of the Fund‟s NAV at all times. The Fund‟s investments in derivatives (if any) shall always be subject to the restrictions stipulated under the sub-heading, investment spread limits; sub-paragraph of investment restriction on derivatives. The use of non-exchange traded or OTC derivatives involve counterparty risks arising from counterparty default or a decline in the latter‟s credit rating. In mitigating this risk, the Management Company will invest in the instrument via counterparties such as banks or financial institutions with a high credit rating, at least „A‟ by Standard & Poor‟s or its equivalent by any other reputable domestic or global rating agency. Thereafter, the Management Company will constantly monitor the credit rating of the counterparty. If the rating of the counterparty falls below the minimum requirements, the Management Company may look to sell/redeem the instrument, or replace with another instrument with a similar underlying asset or another instrument that meets the objective of the Fund. The types of derivatives may be used by the Management Company will include those traded on an exchange such as Bursa Malaysia and those exchanges approved by the relevant regulatory authority. For Shariah-compliant Funds, such derivatives must comply with Shariah. Specific Risks in Money Market Funds: Financial Institution Risk Financial institution risk occurs when a licensed financial institution which the Fund placed its deposits with, defaults on its obligations to pay back the deposits and interests/profits on demand. To mitigate financial institution risks, the Fund will diversify its placement of deposits with different financial institutions regulated by BNM. Interest Rate Risk Interest rate risk refers to how changes in the interest rate environment would affect the performance of the Fund. Deposit rates offered by Financial Institutions will fluctuate according to the overnight policy rate determined by BNM and this may affect the Fund‟s investments in short term Islamic deposits at the point of investment. Depending on the deposit rates locked in at the point of investment, the Fund‟s returns may be high when deposit rates are high and the Fund‟s returns may be low when deposit rates are low. The above interest rate is a general indicator that will have an impact on the management of the Fund regardless whether it is a Shariah-compliant unit trust fund or otherwise. It does not in any way suggest that the Fund will invest in conventional financial instruments. All the investments carried out for the Fund are in accordance with Shariah requirements. It is important to note that events affecting the investments cannot always be foreseen. Therefore, it is not always possible to protect investments against all risks. Different investment instruments generally exhibit different levels of risk. Please note that the returns of the Funds are not guaranteed. The investment of the Funds carries risk and investors are recommended to read the whole Master Prospectus to assess the risks of the Funds. Investors are reminded that the above list of risks may not be exhaustive and if necessary, they should consult their adviser(s), e.g. their bankers, lawyers, stockbrokers or independent financial advisers for a better understanding of the risks. Libra Invest Berhad Master Prospectus 42 6. DETAILED INFORMATION OF THE FUNDS Libra IncomeEXTRA Fund IncomeEXTRA Fund is an open-ended unit trust fund, investing in fixed income securities (including money market instruments) and equities. INVESTMENT OBJECTIVE The principal objective of the Fund is to provide income* and capital appreciation over a medium to long term investment horizon by investing in a balanced portfolio of fixed income instruments and equities. Any material changes to the investment objective of the Fund would require Unit Holders‟ approval. * Distribution of income will primarily be done by way of reinvestment into additional Units. Kindly refer to the distribution policy at page 123 of this Master Prospectus for full details. INVESTMENT STRATEGY The Fund will invest primarily in income-generating securities from both fixed income and equity asset classes. The Fund will be anchored by a relatively stable portfolio of fixed income securities which would be held for their regular income yield. Concurrently, the Fund will also invest in equities that offer high dividend yields. Growth will be the secondary objective of the Fund, which the Manager expects to derive from the gradual capital appreciation of the high-dividend yielding stocks, as well as from selected picks of fundamentally undervalued stocks. While the fund is actively managed, the frequency of its trading strategy will very much depend on market opportunities. ASSET ALLOCATION The Fund will invest 40% to 60% in equities, 40% to 60% of the Fund will be invested in fixed income securities (including money market instruments and liquid assets). Liquid assets will be maintained at all times at a minimum of 2% of the Fund‟s NAV. RISK MANAGEMENT STRATEGIES Please refer to pages 38-41 for detailed explanation of risk management strategies employed by the fund manager. TEMPORARY DEFENSIVE POSITIONS During adverse equity market conditions, the Fund may hold a significantly lower amount of equities than the prescribed minimum of 40% and invest instead in liquid and defensive assets (including fixed income securities with different maturity dates). PERFORMANCE BENCHMARK The composite benchmark consists of 50% MSCI AC Asia Pacific ex-Japan and 50% Maybank 12-months fixed deposit rate. (Source : www.bloomberg.com) The Fund has a flexible asset allocation between equities and fixed income securities with a bias for absolute returns. This means that the Fund is focused on achieving a positive return, even in a downtrend market rather than beating the benchmark. However, as required by the Guidelines, composite benchmark comprising indices for the two major assets classes (equity and fixed income securities) is used to provide investors with a reference point for their investments. Over the long term, equity asset allocation would range between 40% – 60% of the Fund‟s NAV, and fixed income securities and cash would range between 40% – 60% of the Fund‟s NAV. Therefore, the composite benchmark is a reflection of the Fund‟s average asset allocation over the long term of 50% of the Fund‟s NAV in equity and 50% of the Fund‟s NAV in fixed income securities and cash. By definition, absolute returns are the static measure of the actual return an asset achieves over a period of time. The Fund seeks to deliver positive returns independent of how the fixed income securities, cash and equity market perform. The fund manager focuses on achieving positive returns, even in a downtrend market, rather than beating the benchmark. Libra Invest Berhad Master Prospectus 43 PERMITTED INVESTMENTS Unless otherwise prohibited by the relevant authorities or any relevant law and provided always that there are no inconsistencies with the objective of the Fund, the Fund is permitted under the Deed to invest in the following: Securities traded on the Bursa Malaysia or any other market considered as an Eligible Market; Securities not listed in or traded under the rules of an Eligible Market (“Unlisted Securities”); Securities or instruments listed or traded on foreign markets where the regulatory authority is a member of the International Organization of Securities Commissions (IOSCO); Fixed income securities; Money market instruments; Collective Investment Schemes; Derivatives for hedging purposes only; Liquid assets; and Any other kind of investments as permitted by the relevant authorities from time to time. INVESTMENT RESTRICTIONS The investment limits or restrictions for IncomeEXTRA shall be as follows, or any other limits as may be prescribed by the SC from time to time: Exposure Limit: The value of the Fund‟s investments in unlisted securities must not exceed 10% of the Fund‟s NAV. The above exposure limit of unlisted securities does not apply to “unlisted securities” that are: (a) Equities not listed or quoted on a stock exchange but have been approved by the relevant regulatory authority for such listing and quotation, and are offered directly to the Fund by the issuer; (b) Debentures traded on an organized OTC market; and (c) Structured products Investment Spread Limits: The value of the Fund‟s investments in ordinary shares issued by any single issuer must not exceed 10% of the Fund‟s NAV; The value of the Fund‟s investments in transferable securities and money market instruments issued by any single issuer must not exceed 15% of the Fund‟s NAV; The value of the Fund‟s placement in deposits with any single financial institution must not exceed 20% of the Fund‟s NAV; For investments in derivatives: (a) the exposure to the underlying assets must not exceed the investment spread limits stipulated in the Guidelines; (b) the value of the Fund‟s OTC derivative transaction with any single counter-party must not exceed 10% of the Fund‟s NAV; and (c) the Fund‟s exposure from its derivatives position should not exceed the Fund‟s NAV at all times. The aggregate value of the Fund‟s investments in transferable securities, money market instruments, deposits, and OTC derivatives issued by or placed with (as the case may be) any single issuer/financial institution must not exceed 25% of the Fund‟s NAV. The value of the Fund‟s investments in units/shares of any collective investment scheme must not exceed 20% of the Fund‟s NAV; and The value of the Fund‟s investments in transferable securities and money markets instruments issued by any group of companies must not exceed 20% of the Fund‟s NAV. Investment Concentration Limits: The Fund‟s investments in transferable securities (other than debentures) must not exceed 10% of the securities issued by single issuer; The Fund‟s investments in debentures must not exceed 20% of the debentures issued by any single issuer. The Fund‟s investments in money market instruments must not exceed 10% of the instruments issued by any single issuer. However, the limit does not apply to money market instruments that do not have a pre-determined issue size; and The Fund‟s investments in collective investment schemes must not exceed 25% of the units/shares in any one collective investment scheme. INVESTMENT ABROAD The Fund may invest in the following foreign markets: Hong Kong, Singapore, Indonesia, Thailand, Philippines, Taiwan and Korea. Details of the policy on the application of the investment restrictions are set out on page 77. Libra Invest Berhad Master Prospectus 44 Libra EquityEXTRA Fund EquityEXTRA Fund is an open-ended unit trust fund with a medium to long term investment horizon, which invests primarily in equity and equity-related securities. INVESTMENT OBJECTIVE The primary objective of the Fund is to maximize capital returns over a medium to long term period by investing in an actively-managed, diversified portfolio of equity and equity-related securities. Any material changes to the investment objective of the Fund would require Unit Holders‟ approval. INVESTMENT STRATEGY The fund manager for EquityEXTRA shall generally adopt an active investment strategy which emphasises on appropriate asset allocation, for different market conditions to enhance risk-adjusted returns through riding market cycles, situational opportunities, value emergence and trend reversal plays and asset class rotation. The fund manager‟s strategy is to identify key sectors or groups of stocks that the fund manager believes should perform well under an anticipated economic condition. Individual stock selection will then focus on well-managed, financially sound companies with attractive relative valuations and potential for high earnings growth over the medium to long term time frame. The analysis includes ratio analysis on the financial performance of companies, trend analysis to forecast future performance, and stock valuation methods. Occasionally, when market trading is skewed towards index-linked large capitalized stocks, the Fund will attempt to track the performance of the FBM100 by adjusting its portfolio composition accordingly. While the fund is actively managed, the frequency of its trading strategy will very much depend on market opportunities. ASSET ALLOCATION The Fund will invest a minimum of 70% of its NAV in equity and equity-related securities. Liquid assets will be maintained at all times at a minimum of 2% of the Fund‟s NAV. RISK MANAGEMENT STRATEGIES Please refer to pages 38-41 for detailed explanation of risk management strategies employed by the Manager. TEMPORARY DEFENSIVE POSITIONS During adverse market conditions, or when the fund manager anticipates a downturn in market conditions, the Fund may hold significantly higher amount of liquid and defensive assets (including fixed income securities with different maturity dates) than that prescribed by their respective mandates. The fund manager would be expected to re-align the Fund with the principal strategies when market conditions turn for the better. PERFORMANCE BENCHMARK The benchmark of the Fund is FBM100. (Source : Lipper ) PERMITTED INVESTMENTS Unless otherwise prohibited by the relevant authorities or any relevant law and provided always that there are no inconsistencies with the objective of the Fund, the Fund is permitted under the Deed to invest in the following: Ordinary shares and other equity-related securities such as convertible securities, preference shares, warrants listed on Bursa Malaysia or other public exchanges in Malaysia; Liquid assets, unlisted fixed income securities and commercial papers traded in money market; Futures contracts traded in futures market, for hedging purposes only; The securities that the Fund would deem appropriate for investment should, in general, be issued by companies that exhibit good management track record whereby in addition to strong corporate governance, management is transparent and look after minority interest, a sound history of long term profitability and earning resilience, a strong balance sheet which indicates that balance sheet is not „over geared‟ * when compared to peers in the respective industry (since each industry is slightly different), and have a good competitive position whereby the company should be among the top 5 companies in their respective industry, in terms of market share; and Any other kind of investment or investments as permitted by the relevant authorities from time to time. Note: *The term not „over geared‟ is defined as net gearing ratio {(total debt-cash)/ total equity} of the company should not be more than 2 times. Libra Invest Berhad Master Prospectus 45 INVESTMENT RESTRICTIONS The investment limits/restrictions for EquityEXTRA shall be as follows, or any other limits as may be prescribed by the SC from time to time: Exposure Limit: The value of the Fund‟s investments in unlisted bonds and fixed income securities as well as commercial papers traded in the money market must not exceed 50% of the Fund‟s NAV. Investment Spread Limits: The value of the Fund‟s investments in ordinary shares issued by any single issuer must not exceed 10% of the Fund‟s NAV; The value of the Fund‟s investments in transferable securities and money market instruments issued by any single issuer must not exceed 15% of the Fund‟s NAV; The value of the Fund‟s placement in deposits with any single financial institution must not exceed 20% of the Fund‟s NAV; The Fund‟s exposure from its derivatives position should not exceed the Fund‟s NAV at all times; For investments in derivatives, the exposure to the underlying assets of that derivative must not exceed the investment spread limits stipulated in the Guidelines and the value of the Fund‟s OTC derivative transaction with any single counter-party must not exceed 10% of the Fund‟s NAV; The value of the Fund‟s investments in structured products issued by a single counter-party must not exceed 15% of the Fund‟s NAV; The aggregate value of the Fund‟s investments in transferable securities, money market instruments, deposits, OTC derivatives and structured products issued by or placed with (as the case may be) any single issuer/ financial institution must not exceed 25% of the Fund‟s NAV; The value of the Fund‟s investments in units/shares of any collective investment scheme must not exceed 20% of the Fund‟s NAV; and 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. Investment Concentration Limits: The Fund‟s investments in transferable securities (other than debentures) must not exceed 10% of the securities issued by any single issuer; The Fund‟s investments in debentures must not exceed 20% of the debentures issued by any single issuer; The Fund‟s investments in money market instruments must not exceed 10% of the instruments issued by any single issuer. However, the limit does not apply to money market instruments that do not have a pre-determined issue size; and The Fund‟s investments in collective investment schemes must not exceed 25% of the units/shares in any one collective investment scheme. Details of the policy on the application of the investment restrictions are set out on page 77. Libra Invest Berhad Master Prospectus 46 Libra BondEXTRA Fund BondEXTRA Fund is an open-ended unit trust fund, investing primarily in high yield, long term fixed income securities. Its key performance is entirely in search of consistent absolute returns over the long term investment horizon. The Fund expects to maintain a weighted average portfolio maturity appropriate to its stated investment objective. Under normal circumstances, the weighted average term to maturity of investments is expected to be approximately 4 to 8 years. INVESTMENT OBJECTIVE The primary objective of the Fund is to provide investors with aggressive long term capital growth through investment in high yielding fixed income securities with a relatively high level of market and financial risks. Any material changes to the investment objective of the Fund would require Unit Holders‟ approval. INVESTMENT STRATEGY Before constructing the portfolio of a particular fund, the fund manager will analyse the macro environment to enhance risk-adjusted returns by identifying market cycles, situational opportunities, value emergence, trend reversal plays and asset class rotation. With respect to fixed income instruments, the fund manager will focus on consistent, above-average returns from fundamental research rather than from frequent trading. The frequency of its trading strategy will depend on market opportunities. Emphasis is placed on credit-worthiness, investment-grade issuers of debt. A disciplined application of the „top-down‟ investment process is therefore applied, with due consideration given to the credit standing of individual issuers. The fund manager will seek to diversify the investments of the Fund across sectors and individual securities in order to minimize the risk profile of the portfolio. ASSET ALLOCATION The Fund will invest a minimum of 70% of its NAV in fixed income instruments with a minimum credit rating of P3 or BBB3 by RAM or equivalent rating by other rating agencies. Liquid assets will be maintained at all times at a minimum of 2% of the Fund‟s NAV. RISK MANAGEMENT STRATEGIES Please refer to pages 38-41 for detailed explanation of risk management strategies employed by the fund manager. TEMPORARY DEFENSIVE POSITIONS During adverse market conditions, or when the fund manager anticipates a downturn in market conditions, the Fund may hold significantly higher amount of liquid and defensive assets (including fixed income securities with different maturity dates) than that prescribed by their respective mandates. The fund manager would be expected to re-align the Fund with the principal strategies when market conditions turn for the better. PERFORMANCE BENCHMARK The benchmark of the Fund is the Maybank 12-months fixed deposit rate. (Source: Lipper) Investment in the Fund is not the same as placement in a deposit with a financial institution. The capital and returns of the Fund are not guaranteed and there are risks involved. Hence, the risk profile of the Fund does not reflect that of a fixed deposit. PERMITTED INVESTMENTS Unless otherwise prohibited by the relevant authorities or any relevant law and provided always that there are no inconsistencies with the objective of the Fund, the Fund is permitted under the Deed to invest in the following: Fixed income securities issued by the Malaysian government or BNM or any other government related bodies. Such instruments include Malaysian government securities, treasury bills and Bank Negara bills; Issues guaranteed by the government of Malaysia or BNM or any state government in Malaysia; Issues by banks or financial institutions such as banker‟s acceptances and negotiable certificates of deposit; Libra Invest Berhad Master Prospectus 47 Private debt securities. These issues are usually approved by BNM and/or the SC, and/or are rated by RAM or MARC. The credit rating of an issue may also be enhanced through bank guarantees or corporate guarantees; Futures contracts traded in futures market, for hedging purposes only; and Any other kind of investment or investments as permitted by the relevant authorities from time to time. INVESTMENT RESTRICTIONS The investment limits/restrictions for BondEXTRA are as follows, or any other limits as may prescribed by the SC from time to time: Exposure Limit: The value of the Fund‟s investments in unlisted securities must not exceed 10% of the Fund‟s NAV. The above exposure limit of unlisted securities does not apply to unlisted securities that are debentures traded on an organized OTC market. Investment Spread Limits: The value of the Fund‟s investments in debentures issued by any single issuer must not exceed 20% of the Fund‟s NAV. The single issuer limit may be increased to 30% of the Fund‟s NAV if the debentures are rated by any domestic or global rating agency to be of the best quality and offer highest safety for timely payment of interest and principal; The value of the Fund‟s investments in debentures issued by any one group of companies must not exceed 30% of the Fund‟s NAV; The value of the Fund‟s placement in deposits with any single financial institution must not exceed 20% of the Fund‟s NAV; The Fund‟s exposure from its derivatives position should not exceed the Fund‟s NAV at all times; For investments in derivatives, the exposure to the underlying assets of that derivative must not exceed the investment spread limits stipulated in the Guidelines and the value of the Fund‟s OTC derivatives transaction with any single counter-party must not exceed 10% of the Fund‟s NAV; The value of the Fund‟s investments in structured products issued by a single counter-party must not exceed 15% of the Fund‟s NAV; The aggregate value of the Fund‟s investments in transferable securities, money market instruments, deposits, OTC derivatives and structured products issued by or placed with (as the case may be) any single issuer/financial institution must not exceed 25% of the Fund‟s NAV. However, the aggregate value of the Fund‟s investment must not exceed 30% of the Fund‟s NAV where the single issuer limit is increased to 30% of the Fund‟s NAV if the debentures are rated by any domestic or global rating agency to be of the best quality and offer highest safety for timely payment of interest and principal; and The value of the Fund‟s investments in units/shares of any collective investment scheme must not exceed 20% of the Fund‟s NAV. Investment Concentration Limits: The Fund‟s investment in debentures must not exceed 20% of the debentures issued by any single issuer; No maximum limit is imposed if the issuer is the Malaysian Government or BNM or the issue is an issue guaranteed by any of the aforementioned institutions; The Fund‟s investments in money market instruments must not exceed 10% of the instruments issued by any single issuer. However, the limit does not apply to money market instruments that do not have a pre-determined issue size; and The Fund‟s investments in collective instruments schemes must not exceed 25% of the units/shares in any one collective investment scheme. Additionally, BondEXTRA will normally invest at least 50% of its NAV in any one or all of the following: o Fixed income securities with a minimum investment grade of P3 by RAM or MARC-3 by MARC for short- term issues and BBB by RAM or equivalent rating by other rating agencies for long term issues; o Securities issued by the Malaysian Government, BNM, banks or other licensed financial institutions; o Issues guaranteed by the Malaysian Government, BNM, banks or other licensed financial institutions; and o Deposits with banks or other licensed financial institutions. If a rated corporate issue is downgraded to below the minimum credit rating of local short term rating of P3 by RAM or MARC-3 by MARC, or local long term rating of BBB by RAM or equivalent rating by other rating agencies, and it causes the investment limit to be breached, the fund manager would use their best efforts to dispose the holdings before maturity, failing which, it shall be held to maturity. Details of the policy on the application of the investment restrictions are set out on page 77. Libra Invest Berhad Master Prospectus 48 Libra MoneyEXTRA Fund MoneyEXTRA Fund is an open-ended unit trust fund investing primarily in very short term, highly liquid, near cash, money market instruments and partially in fixed income securities. The Fund expects to maintain a weighted average portfolio maturity appropriate to its stated investment objective. Under normal circumstances, the weighted average term to maturity of the investments is expected to be approximately 1 to 24 months. INVESTMENT OBJECTIVE The primary objective of the Fund is to maintain a high degree of liquidity while providing current income through a direct investment portfolio investing in short term, high quality Ringgit-denominated money market instruments. Any material changes to the investment objective of the Fund would require Unit Holders‟ approval. INVESTMENT STRATEGY Before constructing the portfolio of a particular fund, the fund manager will analyse the macro environment to enhance risk-adjusted returns by identifying market cycles, situational opportunities, value emergence, trend reversal plays and asset class rotation. With respect to fixed income instruments, the fund manager will focus on consistent, above-average returns from fundamental research rather than from frequent trading. The frequency of its trading strategy will depend on market opportunities. Emphasis is placed on credit-worthiness, investment-grade issuers of debt. A disciplined application of the „top-down‟ investment process is therefore applied, with due consideration given to the credit standing of individual issuers. The fund manager will seek to diversify the investments of the Fund across sectors and individual securities in order to minimize the risk profile of the portfolio. ASSET ALLOCATION The Fund will invest a minimum of 70% of its NAV in cash, deposits and other liquid assets. Other liquid assets include, but are not limited to, securities issued by the government or quasi-government bodies, including but not limited to Khazanah, Cagamas, Danaharta, Danamodal and BNM, securities guaranteed by the government and private debt securities which have been accorded a rating of P1 by RAM or its equivalent rating by other rating agencies. Up to 30% of the Fund‟s NAV will be invested in money market instruments, bonds with a minimum credit rating of A3 by RAM or its equivalent by other rating agencies and commercial papers with a credit rating of P2 by RAM or its equivalent rating by other rating agencies. Liquid assets will be maintained at all times at a minimum of 2% of the Fund‟s NAV. RISK MANAGEMENT STRATEGIES Please refer to pages 38-41 for detailed explanation of risk management strategies employed by the Manager. TEMPORARY DEFENSIVE POSITIONS During adverse market conditions, or when the fund manager anticipates a downturn in market conditions, the Fund may hold significantly higher amount of liquid and defensive assets (including fixed income securities with different maturity dates) than that prescribed by their respective mandates. The fund manager would be expected to re-align the Fund with the principal strategies when market conditions turn for the better. PERFORMANCE BENCHMARK The benchmark of the Fund is the Average Repurchase Agreement (Repo) rates on the short term money market instruments/deposits offered to the Fund. (Source: Lipper) A Repo is a transaction wherein money market instruments are sold at a particular price by one party (seller) to the other (buyer) with a commitment on the seller‟s part to repurchase the equivalent securities from the buyer on a certain date and at a certain price, both such date and price being fixed as part of the same transaction. Libra Invest Berhad Master Prospectus 49 PERMITTED INVESTMENTS Unless otherwise prohibited by the relevant authorities or any relevant law and provided always that there are no inconsistencies with the objective of the Fund, the Fund is permitted under the Deed to invest in the following: Fixed income securities issued by the Malaysian government or BNM or any other government related bodies. Such instruments include Malaysian government securities, treasury bills and Bank Negara bills; Issues guaranteed by the government of Malaysia or BNM or any state government in Malaysia; Issues by banks or financial institutions such as banker‟s acceptances and negotiable certificates of deposit; Private debt securities. These issues are usually approved by BNM and/or the SC, and/or are rated by RAM or MARC. The credit rating of an issue may also be enhanced through bank guarantees or corporate guarantees; Futures contracts traded in futures market, for hedging purposes only; and Any other kind of investment or investments as permitted by the relevant authorities from time to time. INVESTMENT RESTRICTIONS The investment limits/restrictions for MoneyEXTRA shall be as follows, or any other limits as may prescribe by the SC from time to time: Exposure Limit: The value of the Fund‟s investments in unlisted securities must not exceed 10% of the Fund‟s NAV. The above exposure limit of unlisted securities does not apply to unlisted securities that are debentures traded on an organized OTC market. Investment Spread Limits: The value of the Fund‟s investments in debentures issued by any single issuer must not exceed 20% of the Fund‟s NAV. The single issuer limit may be increased to 30% of the Fund‟s NAV if the debentures are rated by any domestic or global rating agency to be of the best quality and offer highest safety for timely payment of interest and principal; The value of the Fund‟s investments in debentures issued by any one group of companies must not exceed 30% of the Fund‟s NAV; The value of the Fund‟s placement in deposits with any single financial institution must not exceed 20% of the Fund‟s NAV; The Fund‟s exposure from its derivatives position should not exceed the Fund‟s NAV at all times; For investments in derivatives, the exposure to the underlying assets of that derivatives must not exceed the investment spread limits stipulated in the Guidelines and the value of the Fund‟s OTC derivatives transaction with any single counter-party must not exceed 10% of the Fund‟s NAV; The value of the Fund‟s investments in structured products issued by a single counter-party must not exceed 15% of the Fund‟s NAV; The aggregate value of the Fund‟s investments in transferable securities, money market instruments, deposits, OTC derivatives and structured products issued by or placed with (as the case may be) any single issuer/financial institution must not exceed 25% of the Fund‟s NAV. However, the aggregate value of the Fund‟s investment must not exceed 30% of the Fund‟s NAV where the single issuer limit is increased to 30% of the Fund‟s NAV if the debentures are rated by any domestic or global rating agency to be of the best quality and offer highest safety for timely payment of interest and principal; and The value of the Fund‟s investments in units/shares of any collective investment scheme must not exceed 20% of the Fund‟s NAV. If a private debt security is downgraded to below the minimum credit rating of P2 or A3 by RAM or equivalent rating by other rating agencies, the fund manager will assess the downgraded credit to determine the viability of the security‟s issuer. A decision is then made on whether to dispose of the security or to hold it until maturity. For a defaulted private debt security, meetings are held with the security‟s issuer, trustees and other holders of the defaulted security to discuss restructuring and/or repayment plans with a view towards recovery and settlement of the security. Libra Invest Berhad Master Prospectus 50 Investment Concentration Limits: The Fund‟s investment in debentures must not exceed 20% of the debentures issued by any single issuer; No maximum limit is imposed if the issuer is the Malaysian government or BNM or the issue is an issue guaranteed by any of the aforementioned institutions; The Fund‟s investments in money market instruments must not exceed 10% of the instruments issued by any single issuer. However, the limit does not apply to money market instruments that do not have a pre-determined issue size; and The Fund‟s investments in collective investment schemes must not exceed 25% of the units/shares in any one collective investment scheme. Details of the policy on the application of the investment restrictions are set out on page 77. Libra Invest Berhad Master Prospectus 51 Libra VersatileEXTRA Fund VersatileEXTRA Fund is an open-ended unit trust fund, investing in a blend of quoted securities, bonds and other money market instruments and financial derivatives (financial instruments that have no intrinsic value but derive their value from an underlying instrument such as interest rates, indices and share prices). The financial derivatives are used to manage one‟s exposure to unexpected price fluctuations in the equity and bond markets. Examples of financial derivatives are FBM100 futures, FBM100 options and Malaysian Government Securities futures. VersatileEXTRA will invest principally in a balanced portfolio consisting of equities, equity-related securities and fixed income securities. Its key performance is entirely in search of consistent absolute returns over the medium to long term investment horizon. VersatileEXTRA is a Malaysian-focus Fund but for tactical call, the Fund may invest up to 30% of its NAV offshore. INVESTMENT OBJECTIVE The primary objective of the Fund is to provide investors medium to long term capital appreciation through its investments in specified asset classes by adopting a relatively balanced approach towards equities and fixed income exposure. The Fund aims to achieve capital growth with lower and short term volatility than is normally associated with a pure equity fund. Any material changes to the investment objective of the Fund would require Unit Holders‟ approval. INVESTMENT STRATEGY The fund manager for VersatileEXTRA shall generally adopt an active investment strategy which emphasizes on appropriate asset allocation, for different market conditions to enhance risk-adjusted returns through riding market cycles, situational opportunities, value emergence and trend reversal plays and asset class rotation. The fund manager‟s strategy is to identify key sectors or groups of stocks that the fund manager believes should perform well under an anticipated economic condition. Individual stock selection will then focus on well-managed, financially sound companies with attractive relative valuations and potential for high earnings growth over the medium to long term time frame. The analysis includes ratio analysis on the financial performance of companies, trend analysis to forecast future performance and stock valuation methods. Occasionally, when market trading is skewed towards index-linked large capitalized stocks, the Fund will attempt to track the performance of the FBM100 by adjusting its portfolio composition accordingly. While the fund is actively managed, the frequency of its trading strategy will very much depend on market opportunities. ASSET ALLOCATION The Fund will invest between 40% to 60% of its NAV in quoted equity and equity-related securities. The Fund will also invest between 40% to 60% of its NAV in fixed income securities with a minimum credit rating of P3 or BBB3 by RAM or equivalent rating by other rating agencies and liquid assets. Liquid assets will be maintained at all times at a minimum of 2% of the Fund‟s NAV. RISK MANAGEMENT STRATEGIES Please refer to pages 38-41 for detailed explanation of risk management strategies employed by the fund manager. TEMPORARY DEFENSIVE POSITIONS During adverse market conditions, or when the fund manager anticipates a downturn in market conditions, the Fund may hold significantly higher amount of liquid and defensive assets (including fixed income securities with different maturity dates) than that prescribed by their respective mandates. The fund manager would be expected to re-align the Fund with the principal strategies when market conditions turn for the better. PERFORMANCE BENCHMARK The benchmark of the Fund is a composite benchmark comprising 50% of the FBM100 and 50% of the Maybank 12months fixed deposit rate. (Source: Lipper) The Fund has a flexible asset allocation between equities and fixed income securities with a bias for absolute (i.e. positive) returns. This means that the Fund is focused on achieving a positive return, even in a downtrend market rather than beating the benchmark. However, as required by the Guidelines, composite benchmark comprising indices for the two major assets classes (equity and fixed income) is used to provide investors with a reference point for their investments. Libra Invest Berhad Master Prospectus 52 Over the long term, equity asset allocation would range between 40 – 60% of the Fund‟s NAV, and fixed income securities and cash would range between 40 – 60% of the Fund‟s NAV. Therefore, the composite benchmark is a reflection of the Fund‟s average asset allocation over the long term of 50% of the Fund‟s NAV in equity and 50% of the Fund‟s NAV in fixed income and cash. By definition, absolute returns are the static measure of the actual return an asset achieves over a period of time. The Fund seeks to deliver positive returns independent of how the fixed income, cash and equity market perform. The fund manager focuses on achieving positive returns, even in a downtrend market, rather than beating the benchmark. PERMITTED INVESTMENTS Unless otherwise prohibited by the relevant authorities or any relevant law and provided always that there are no inconsistencies with the objective of the Fund, the Fund is permitted under the Deed to invest in the following: Securities of Malaysian companies listed on a recognised stock exchange; Securities listed on Foreign Stock Exchanges which have been permitted by the relevant authorities from time to time; Fixed income securities issued by the Malaysian government or BNM or any other government related bodies. Such instruments include Malaysian government securities, treasury bills and Bank Negara bills; Issues guaranteed by the government of Malaysia or BNM or any state government in Malaysia; Issues by banks or financial institutions such as banker‟s acceptances and negotiable certificates of deposit; Private debt securities. These issues are usually approved by BNM and/or the SC, and/or are rated by RAM or MARC. The credit rating of an issue may also be enhanced through bank guarantees or corporate guarantees; Futures contracts traded in futures market, for hedging purposes only; and Any other kind of investment or investments as permitted by the relevant authorities from time to time. INVESTMENT RESTRICTIONS The investment limits/restrictions for VersatileEXTRA Fund shall be as follows, or any other limits as may be prescribed by the SC from time to time: Exposure Limit: The value of the Fund‟s investments in unlisted securities must not exceed 10% of the Fund‟s NAV. The above exposure limit of unlisted securities does not apply to unlisted securities that are equities not listed or quoted on a stock exchange but have been approved by the relevant regulatory authority for such listing and quotation, and are offered directly to the Fund by the issuer and debentures traded on an organized OTC market. Investment Spread Limits: The value of the Fund‟s investments in ordinary shares issued by any single issuer must not exceed 10% of the Fund‟s NAV; The value of the Fund‟s investments in transferable securities and money market instruments issued by any single issuer must not exceed 15% of the Fund‟s NAV; The value of the Fund‟s placement in deposits with any single financial institution must not exceed 20% of the Fund‟s NAV; The Fund‟s exposure from its derivatives position should not exceed the Fund‟s NAV at all times; For investments in derivatives, the exposure to the underlying assets of that derivative must not exceed the investment spread limits stipulated in the Guidelines and the value of the Fund‟s OTC derivative transaction with any single counter-party must not exceed 10% of the Fund‟s NAV; The value of the Fund‟s investments in structured products issued by a single counter-party must not exceed 15% of the Fund‟s NAV; The aggregate value of the Fund‟s investments in transferable securities, money market instruments, deposits, OTC derivatives and structured products issued by or placed with (as the case may be) any single issuer/ financial institution must not exceed 25% of the Fund‟s NAV; The value of the Fund‟s investments in units/shares of any collective investment scheme must not exceed 20% of the Fund‟s NAV; and 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. Libra Invest Berhad Master Prospectus 53 Investment Concentration Limits The Fund‟s investments in transferable securities (other than debentures) must not exceed 10% of the securities issued by any single issuer; The Fund‟s investments in debentures must not exceed 20% of the debentures issued by any single issuer; The Fund‟s investments in money market instruments must not exceed 10% of the instruments issued by any single issuer. However, the limit does not apply to money market instruments that do not have a pre-determined issue size; and The Fund‟s investments in collective investment schemes must not exceed 25% of the units/shares in any one collective investment scheme. INVESTMENT ABROAD The Fund may invest up to 30% of its NAV in equity and equity-related securities listed in the following foreign markets: The Stock Exchange of Hong Kong Limited and Hong Kong Futures Exchange Limited in Hong Kong; The Stock Exchange of Thailand in Thailand; and The Singapore Exchange Limited (SGX) in Singapore. Details of the policy on the application of the investment restrictions are set out on page 77. Libra Invest Berhad Master Prospectus 54 Libra DividendEXTRA Fund DividendEXTRA Fund is an open-ended unit trust fund with a medium to long term investment horizon, which invests principally in high dividend yield stocks. DividendEXTRA Fund is a Malaysian focus fund but for tactical call, the Fund may invest up to 30% of its NAV offshore. INVESTMENT OBJECTIVE The Fund seeks to achieve relatively stable returns via income and capital appreciation over the medium to long term by investing principally in high dividend yield stocks. Any material changes to the investment objective of the Fund would require Unit Holders‟ approval. INVESTMENT STRATEGY The fund manager for DividendEXTRA shall generally adopt an active investment strategy which emphasises on appropriate asset allocation, for different market conditions to enhance risk-adjusted returns through riding market cycles, situational opportunities, value emergence and trend reversal plays and asset class rotation. The fund manager‟s strategy is to identify key sectors or groups of stocks that the fund manager believes should perform well under an anticipated economic condition. Individual stock selection will then focus on well-managed, financially sound companies with attractive relative valuations and potential for high earnings growth over the medium to long term time frame. The analysis includes ratio analysis on the financial performance of companies, trend analysis to forecast future performance, and stock valuation methods. Occasionally, when market trading is skewed towards index-linked large capitalized stocks, the Fund will attempt to track the performance of the FBM100 by adjusting its portfolio composition accordingly. While the fund is actively managed, the frequency of its trading strategy will very much depend on market opportunities. ASSET ALLOCATION The Fund will invest a minimum of 70% of its NAV in equity and equity-related securities. Liquid assets will be maintained at all times at a minimum of 2% of the Fund‟s NAV. RISK MANAGEMENT STRATEGIES Please refer to pages 38-41 for detailed explanation of risk management strategies employed by the fund manager. TEMPORARY DEFENSIVE POSITIONS During adverse market conditions, or when the fund manager anticipates a downturn in market conditions, the Fund may hold significantly higher amount of liquid and defensive assets (including fixed income securities with different maturity dates) than that prescribed by their respective mandates. The fund manager would be expected to re-align the Fund with the principal strategies when market conditions turn for the better. PERFORMANCE BENCHMARK The benchmark of the Fund is the FBM100. (Source: Lipper) PERMITTED INVESTMENTS Unless otherwise prohibited by the relevant authorities or any relevant law and provided always that there are no inconsistencies with the objective of the Fund, the Fund is permitted under the Deed to invest in the following: Listed ordinary shares and other equity-related securities such as convertible securities, preference shares, warrants, liquid assets and fixed income securities traded in money market; Futures contracts traded in futures markets of an exchange approved under the Act, for hedging purposes only; The securities that the Fund would deem appropriate for investment should, in general, be issued by well managed companies where dividends are expected to be maintained or grow, with potential growth of the companies and the industry, and exhibit good management track record;and Other kinds of investments in Malaysia and outside Malaysia as agreed by the Management Company and Trustee, and permitted by the relevant authorities from time to time. The securities that DividendEXTRA would deem appropriate for investment should, in general, be issued by well managed companies where dividends are expected to be maintained or grow; with potential growth of the companies and the industry, and exhibit good management track record. Libra Invest Berhad Master Prospectus 55 INVESTMENT RESTRICTIONS The investment restrictions for DividendEXTRA are as follows, or any other limits as may be prescribed by the SC from time to time: Exposure Limit: The value of the Fund‟s investments in unlisted securities must not exceed 10% of the Fund‟s NAV. The above exposure limit of unlisted securities does not apply to unlisted securities that are equities not listed or quoted on a stock exchange but have been approved by the relevant regulatory authority for such listing and quotation, and are offered directly to the Fund by the issuer. Investment Spread Limits: The value of the Fund‟s investments in ordinary shares issued by any single issuer must not exceed 10% of the Fund‟s NAV; The value of the Fund‟s investments in transferable securities and money market instruments issued by any single issuer must not exceed 15% of the Fund‟s NAV; The value of the Fund‟s placement in deposits with any single financial institution must not exceed 20% of the Fund‟s NAV; The Fund‟s exposure from its derivatives position should not exceed the Fund‟s NAV at all times; For investments in derivatives, the exposure to the underlying assets of that derivative must not exceed the investment spread limits stipulated in the Guidelines and the value of the Fund‟s OTC derivative transaction with any single counter-party must not exceed 10% of the Fund‟s NAV; The value of the Fund‟s investments in structured products issued by a single counter-party must not exceed 15% of the Fund‟s NAV; The aggregate value of the Fund‟s investments in transferable securities, money market instruments, deposits, OTC derivatives and structured products issued by or placed with (as the case may be) any single issuer/financial institution must not exceed 25% of the Fund‟s NAV; The value of the Fund‟s investments in units/shares of any collective investment scheme must not exceed 20% of the Fund‟s NAV; and 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. Investment Concentration Limits: The Fund‟s investments in transferable securities (other than debentures) must not exceed 10% of the securities issued by any single issuer; The Fund‟s investments in debentures must not exceed 20% of the debentures issued by any single issuer; The Fund‟s investments in money market instruments must not exceed 10% of the instruments issued by any single issuer. However, the limit does not apply to money market instruments that do not have a pre-determined issue size; and The Fund‟s investments in collective investment schemes must not exceed 25% of the units/shares in any one collective investment scheme. INVESTMENT ABROAD The Fund may invest up to 30% of its NAV in equity and equity-related securities listed in the following foreign markets: The Stock Exchange of Hong Kong Limited and Hong Kong Futures Exchange Limited in Hong Kong; The Stock Exchange of Thailand in Thailand; and The Singapore Exchange Limited (SGX) in Singapore. Details of the policy on the application of the investment restrictions are set out on page 77. Libra Invest Berhad Master Prospectus 56 Libra TacticalEXTRA Fund TacticalEXTRA Fund is an open-ended unit trust fund investing in quoted equities of companies primarily with large market capitalisation (big caps), bonds and other money market instruments according to the market outlook and economic conditions. TacticalEXTRA will invest primarily in a portfolio of equities comprising of large-cap companies in search for returns against the backdrop of a bullish market. During market uncertainty, TacticalEXTRA shall adopt a defensive approach towards fixed income exposure to provide capital preservation or to invest tactically. Its key performance is entirely in search of absolute returns over the medium to long term investment horizon. INVESTMENT OBJECTIVE The Fund aims to provide investors with medium to long term capital appreciation by investing principally in liquid equities with large market capitalization (big caps), and fixed income instruments with flexible asset allocation. Any material changes to the investment objective of the Fund would require Unit Holders‟ approval. INVESTMENT STRATEGY The fund manager for TacticalEXTRA shall generally adopt an active investment strategy which emphasizes on appropriate asset allocation, for different market conditions to enhance risk-adjusted returns through riding market cycles, situational opportunities, value emergence and trend reversal plays and asset class rotation. The fund manager‟s strategy is to identify key sectors or groups of stocks that the fund manager believes should perform well under an anticipated economic condition. Individual stock selection will then focus on well-managed, financially sound companies with attractive relative valuations and potential for high earnings growth over the medium to long term time frame. The analysis includes ratio analysis on the financial performance of companies, trend analysis to forecast future performance and stock valuation methods. Occasionally, when market trading is skewed towards index-linked large capitalized stocks, the Fund will attempt to track the performance of the FBM100 by adjusting its portfolio composition accordingly. While the fund is actively managed, the frequency of its trading strategy will very much depend on market opportunities. ASSET ALLOCATION The Fund will invest a minimum of 70% of its NAV in quoted equity and equity-related securities. A maximum of 30% of the Fund‟s NAV will be invested in fixed income securities with a minimum credit rating of P3 or BBB3 by RAM or equivalent rating by other rating agencies. Liquid assets will be maintained at all times at a minimum of 5% of the Fund‟s NAV. RISK MANAGEMENT STRATEGIES Please refer to pages 38-41 for detailed explanation of risk management strategies employed by the fund manager. TEMPORARY DEFENSIVE POSITIONS During adverse market conditions, or when the fund manager anticipates a downturn in market conditions, the Fund may hold up to 100% in cash. The fund manager would be expected to re-align the Fund with the principal strategies when market conditions turn for the better. PERFORMANCE BENCHMARK The benchmark of the Fund is a composite benchmark comprising 50% of the FBM100 and 50% of the Maybank 12months fixed deposit rate. (Source: Lipper) The Fund has a flexible asset allocation between equities and fixed income securities with a bias for absolute (i.e. positive) returns. This means that the Fund is focused on achieving a positive return, even in a downtrend market rather than beating the benchmark. However, as required by the Guidelines, composite benchmark comprising indices for the two major asset classes (equity and fixed income) is used to provide investors with a reference point for their investments. Over the long term, equity asset allocation would range between 30%-70% of the Fund‟s NAV and fixed income and cash would range between 30%-70% of the Fund‟s NAV. Therefore, the composite benchmark is a reflection of the Fund‟s average asset allocation over the long term of 50% of the Fund‟s NAV in equity and 50% of the Fund‟s NAV in fixed income and cash. Libra Invest Berhad Master Prospectus 57 By definition, absolute returns are the static measure of the actual return an asset achieves over a period of time. The Fund seeks to deliver positive returns independent of how the fixed income, cash and equity market perform. The fund manager focuses on achieving positive returns, even in a downtrend market, rather than beating the benchmark. However, as required by the Guidelines, composite benchmark comprising indices for the two major asset classes (equity and fixed income) is used to provide investors with a reference point for their investments. PERMITTED INVESTMENTS Unless otherwise prohibited by the relevant authorities or any relevant law and provided always that there are no inconsistencies with the objective of the Fund, the Fund is permitted by the Deed to invest in the following: Securities of Malaysian companies listed on the recognised stock exchange; Fixed income securities issued by the Malaysian government or BNM or any other government related bodies. Such instruments include Malaysian government securities, treasury bills and Bank Negara bills; Issues guaranteed by the government of Malaysia or BNM or any state government in Malaysia; Issues by banks or financial institutions such as banker‟s acceptances and negotiable certificates of deposit; Private debt securities. These issues are usually approved by BNM and/or the SC, and/or are rated by RAM or MARC. The credit rating of an issue may also be enhanced through bank guarantees or corporate guarantees; Futures contracts traded in futures market, for hedging purposes only; and Any other kind of investment or investments as permitted by the relevant authorities from time to time. INVESTMENT RESTRICTIONS The investment limits/restrictions for TacticalEXTRA Fund shall be as follows, or any other limits as may be prescribed by the SC from time to time: Exposure Limit: The value of the Fund‟s investments in unlisted securities must not exceed 10% of the Fund‟s NAV. The above exposure limit of unlisted securities does not apply to unlisted securities that are equities not listed or quoted on a stock exchange but have been approved by the relevant regulatory authority for such listing and quotation, and are offered directly to the Fund by the issuer. Investment Spread Limits: The value of the Fund‟s investments in ordinary shares issued by any single issuer must not exceed 10% of the Fund‟s NAV; The value of the Fund‟s investments in transferable securities and money market instruments issued by any single issuer must not exceed 15% of the Fund‟s NAV; The value of the Fund‟s placement in deposits with any single financial institution must not exceed 20% of the Fund‟s NAV; The Fund‟s exposure from its derivatives position should not exceed the Fund‟s NAV at all times; For investments in derivatives, the exposure to the underlying assets of that derivative must not exceed the investment spread limits stipulated in the Guidelines and the value of the Fund‟s OTC derivative transaction with any single counter-party must not exceed 10% of the Fund‟s NAV; The value of the Fund‟s investments in structured products issued by a single counter-party must not exceed 15% of the Fund‟s NAV; The aggregate value of the Fund‟s investments in transferable securities, money market instruments, deposits, OTC derivatives and structured products issued by or placed with (as the case may be) any single issuer/ financial institution must not exceed 25% of the Fund‟s NAV; The value of the Fund‟s investments in units/shares of any collective investment scheme must not exceed 20% of the Fund‟s NAV; and 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. Libra Invest Berhad Master Prospectus 58 Investment Concentration Limits: The Fund‟s investments in transferable securities (other than debentures) must not exceed 10% of the securities issued by any single issuer; The Fund‟s investments in debentures must not exceed 20% of the debentures issued by any single issuer; The Fund‟s investments in money market instruments must not exceed 10% of the instruments issued by any single issuer. However, the limit does not apply to money market instruments that do not have a pre-determined issue size; and The Fund‟s investments in collective investment schemes must not exceed 25% of the units/shares in any one collective investment scheme. Details of the policy on the application of the investment restrictions are set out on page 77. Libra Invest Berhad Master Prospectus 59 Libra Consumer and Leisure Asia Fund LCLAF is an open-ended regional unit trust fund, which seeks to offer investors a wider investment universe of quality growth stocks by investing primarily in those that offer exposure to the consumer and leisure sector in Asia. The Fund will be a proxy to the growth prospects of this burgeoning sector which is expected to be a major beneficiary of rising disposable income in the region. In turn, investors will earn potentially attractive returns. The Fund‟s key performance is to search for positive absolute returns over the medium to long term (3-5 years) investment horizon. As one of the world‟s most dynamic economic zones, Asia is seeing a rapid expansion of its middle class population who, in turn, have increasingly more disposable income to spend. Sectors related to consumer consumption and leisure are expected to be major beneficiaries of this trend and the Fund will target investments in such sectors which would include gaming, hotels, airlines, retail outlets, restaurant chains, consumer electronics and other supporting industries. INVESTMENT OBJECTIVE The Fund seeks to provide capital appreciation over the medium to long term by investing in a diversified portfolio comprising stocks of companies in Asia which are considered to have strong growth prospects and are able to benefit from the rising wealth effect of the region‟s middle class population. Any material changes to the investment objective of the Fund would require Unit Holders‟ approval. INVESTMENT STRATEGY The fund manager will look for the latest trends and themes reflective of the consumer and leisure focus of the Fund. This would involve analysis of diverse but relevant sectors and sub-sectors ranging from tourism, hotels, airlines, gaming, general retail, consumer electronics and premium real estate to the more economically inelastic brewing and tobacco sectors. This list is not exhaustive and the fund manager believes there are ample areas to invest in within this theme to enable adequate diversification for different market conditions. The Fund‟s investment universe will primarily comprise companies with a well-established track record, a strong business franchise, professionally run management and proven business models that give them a good competitive edge. Many of these companies will have products and services with brand names that are well known in the region, and in some cases, recognizable worldwide. The quality of these companies should be reflected in their financial track record, for example, a history of steady sales growth, firm profit margins, sustained profitability and prudent balance sheet management. The fund manager will use an appropriate investment valuation framework to invest in only those that the fund manager believes the stock price has yet to fully reflect the company‟s growth potential or underlying fair value. This framework will include techniques such as measuring a company‟s prospective price-to-earnings ratio, price-to-book ratio or enterprise value per unit against sector and regional peers, or a discounted cash flow valuation model. While the fund is actively managed, the frequency of its trading strategy will very much depend on market opportunities. ASSET ALLOCATION Generally, the Fund will invest at least 70% of it‟s NAV in equity and equity-related securities, while maintaining a minimum of 50% in non-Malaysian equity (Hong Kong, India, Indonesia, Japan, Korea, Philippines, Singapore, Taiwan, and Thailand markets). Liquid assets shall be maintained at a minimum of 2% of the Fund‟s NAV and fixed income securities within Malaysia shall be maintained at a minimum of 10% of the Fund‟s NAV. RISK MANAGEMENT STRATEGIES Please refer to pages 38-41 for detalied explanation of risk management strategies employed by the fund manager. TEMPORARY DEFENSIVE POSITIONS In response to adverse economic or market conditions, or when the fund manager anticipates a severe downturn in the market, the Fund as part of its risk management strategy may increase its cash exposure or hold significantly high defensive assets, that include short term fixed income securities. This would mean reducing the equity allocation to levels below 70%. The Fund may, when deemed appropriate, utilize futures contracts but only for hedging and risk reduction purposes. Libra Invest Berhad Master Prospectus 60 PERFORMANCE BENCHMARK The benchmark of the Fund is the MSCI AC Asia Consumer Discretionary Index. The Fund aims for absolute returns. (Source: www.bloomberg.com) By definition, absolute returns are the static measure of the actual return an asset achieves over a period of time. The Fund seeks to deliver positive returns independent of how the fixed income, cash and equity market perform. The fund manager focuses on achieving positive returns, even in a downtrend market, rather than beating the benchmark. PERMITTED INVESTMENTS Unless otherwise prohibited by the relevant authorities or any relevant law and provided always that there are no inconsistencies with the objective of the Fund, the Fund is permitted under the Deed to invest in the following: Securities of Malaysian companies listed on Bursa Malaysia; Securities in foreign markets, which markets are permitted by the relevant authorities from time to time; Fixed income securities issued by the Malaysian government or BNM or any other government related bodies. Such instruments include Malaysian government securities, treasury bills and Bank Negara bills; Private debt securities. These issues are usually approved by BNM and/or the SC, and/or are rated by RAM or MARC. The credit rating of an issue may also be enhanced through bank guarantees or corporate guarantees; Issues guaranteed by the government of Malaysia or BNM or any state government in Malaysia; Issues by financial institution such as banker‟s acceptances and negotiable certificates of deposit; Liquid assets; Futures market and options, for hedging purposes only; Units or shares in other collective investment schemes; and Any other kind of investment as may be agreed upon by the Management Company and Trustee from time to time, and permitted by the relevant authority. INVESTMENT RESTRICTIONS The investment limits/restrictions for LCLAF shall be as follows, or any other limits as may be prescribed by the SC from time to time: Exposure Limit: The value of the Fund‟s investments in unlisted securities must not exceed 10% of the Fund‟s NAV. The above exposure limit of unlisted securities does not apply to unlisted securities that are equities not listed or quoted on a stock exchange but have been approved by the relevant regulatory authority for such listing and quotation, and are offered directly to the Fund by the issuer. Investment Spread Limits: The value of the Fund‟s investments in ordinary shares issued by any single issuer must not exceed 10% of the Fund‟s NAV; The value of the Fund‟s investments in transferable securities and money market instruments issued by any single issuer must not exceed 15% of the Fund‟s NAV; The value of the Fund‟s placement in deposits with any single financial institution must not exceed 20% of the Fund‟s NAV; The Fund‟s exposure from its derivatives position should not exceed the Fund‟s NAV at all times; For investments in derivatives, the exposure to the underlying assets of that derivative must not exceed the investment spread limits stipulated in the Guidelines and the value of the Fund‟s OTC transaction with any single counter-party must not exceed 10% of the Fund‟s NAV; The value of the Fund‟s investments in structured products issued by a single counter-party must not exceed 15% of the Fund‟s NAV; The aggregate value of the Fund‟s investments in transferable securities, money market instruments, deposits, OTC derivatives and structured products issued or placed with (as the case may be) any single issuer/ financial institution must not exceed 25% of the Fund‟s NAV; The value of the Fund‟s investments in units/shares of any collective investment scheme must not exceed 20% of the Fund‟s NAV; and 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. Libra Invest Berhad Master Prospectus 61 Investment Concentration Limits: The Fund‟s investments in transferable securities (other than debentures) must not exceed 10% of the securities issued by any single issuer; The Fund‟s investments in debentures must not exceed 20% of the debentures issued by any single issuer; The Fund‟s investments in money market instruments must not exceed 10% of the instruments issued by any single issuer. However, the limit does not apply to money market instruments that do not have a pre-determined issue size; and The Fund‟s investments in collective investment schemes must not exceed 25% of the units/shares in any one collective investment scheme. Details of the policy on the application of the investment restrictions are set out on page 77. Libra Invest Berhad Master Prospectus 62 Libra Liquidity Fund LLF is an open-ended unit trust fund, investing primarily in Ringgit-denominated short term deposits with licensed financial institutions. INVESTMENT OBJECTIVE The Fund seeks to preserve capital and maintain a high degree of liquidity while providing steady income with minimal risk by investing primarily in short term deposits. Any material changes to the investment objective of the Fund would require Unit Holders‟ approval. INVESTMENT STRATEGY The Fund shall generally adopt an active investment strategy which will invest up to 100% of its NAV in Ringgitdenominated short term deposits with licensed financial institutions. ASSET ALLOCATION The Fund will invest up to 100% of the Fund‟s NAV in Ringgit-denominated short term deposits. RISK MANAGEMENT STRATEGIES To mitigate financial institution risks, the Fund will diversify its deposit placements with different financial institutions regulated by BNM. TEMPORARY DEFENSIVE POSITIONS No temporary defensive positions will be taken as the Fund will not be investing in any securities or fixed income instruments. PERFORMANCE BENCHMARK The benchmark of the Fund is the Maybank Overnight Repurchase Agreement (Repo) rates. (Source: Lipper) PERMITTED INVESTMENTS Unless otherwise prohibited by the relevant authorities or any relevant law and provided always that there are no inconsistencies with the objective of the Fund, the Fund is permitted under the Deed to invest in the following: Liquid assets which consist of RM denominated deposits placed with licensed financial institutions; and Any other investments as may be permitted by the relevant authorities from time to time. INVESTMENT RESTRICTIONS The investment limits/restrictions for LLF shall be as follows, or any other limits as may prescribed by the SC from time to time: Exposure Limits: ▪ The value of the Fund‟s investments in permitted investments must not be less than 90% of the Fund „s NAV; ▪ The value of the Fund‟s investments in permitted investments which have a remaining maturity period of not more than 365 days must not be less than 90% of the Fund‟s NAV; and ▪ The value of the Fund‟s investments in permitted investments which have a remaining maturity period of more than 365 days but fewer than 732 days must not exceed 10% of the Fund‟s NAV. Libra Invest Berhad Master Prospectus 63 Investment Spread Limits: ▪ The value of the Fund‟s placement in deposits with any single financial institution must not exceed 20% of the Fund‟s NAV. Details of the policy on the application of the investment restrictions are set out on page 77. Investment in the Fund is not the same as placement in a deposit with a financial institution. There are risks involved and investors should rely on their own evaluation to assess the merits and risks when investing in the Fund. Libra Invest Berhad Master Prospectus 64 Libra Resource Equity Fund LREF is an open ended global unit trust fund which will invest at least 70% of its NAV in equities and equity-related securities of companies that are involved in the exploration for and the development, production and marketing resources products such as energy, minerals, agriculture and related industries globally which are listed on the stock exchanges of countries listed in the MSCI ACWI (except for the excluded countries mentioned in the investment strategy of the LREF). INVESTMENT OBJECTIVE The Fund seeks to achieve capital growth over a medium to long term period by investing primarily in equities and equity-related securities traded globally. The Fund may also invest in fixed income securities, structured products and money market instruments. Any material changes to the investment objective of the Fund would require Unit Holders‟ approval. INVESTMENT STRATEGY The Fund aims to achieve its investment objective through a diversified investment portfolio of equity and equityrelated securities which are listed on the stock exchanges of countries listed in the MSCI ACWI (except for the excluded countries mentioned in the investment strategy of the LREF). The fund will invest at least 70% of its NAV in equities and equity-related securities of companies that are involved in the exploration for and the development, production and marketing of resources products such as energy, minerals, agriculture and related industries. The Fund may also invest in other investments depending on the market outlook and economic conditions. The Manager will employ a multi-step investment process, combining a bottom-up investment analysis of companies with top-down macro-analysis asset allocation at country and sector levels. Sector allocation is derived after analyzing macroeconomic trends and country dynamics. The Manager believes that investment performance can be achieved by employing a rigorous research process that enables them to identify sound and profitable companies that generate excess return above the MSCI ACWI, being the benchmark‟s return as well as by identifying companies that are undervalued. An active investment strategy which emphasises on appropriate asset allocation, for different market conditions to enhance risk-adjusted returns through riding market cycles, situational opportunities, value emergence and trend reversal plays will be adopted. As of 10 February 2016, the countries within the MSCI ACWI consist of the following: Australia Austria Belgium Egypt Finland France Israel Italy Japan Philippines Poland Portugal Switzerland Taiwan Thailand Brazil Canada Chile Germany Greece Hong Kong Korea Malaysia Mexico Qatar Russia Saudi Arabia Turkey United Arab Emirates China Colombia Czech Republic Hungary India Indonesia Netherlands New Zealand Norway Singapore South Africa Spain United Kingdom United States of America Denmark Ireland Peru Sweden Source :- www.msci.com This list of countries may be reviewed by MSCI from time to time. For the avoidance of doubt, the Manager may invest in all the countries mentioned above except Egypt, Israel, Turkey, Colombia, Mexico, Peru and Chile. While the fund is actively managed, the frequency of its trading strategy will very much depend on market opportunities. In addition to equity and equity-related securities, the other types of investments that the Fund may, amongst others, invest in are fixed income securities and structured products. Structured products are securities that combine the characteristics of traditional investments (such as stocks and bonds) or non-traditional investments (such as foreign exchanges) with financial instruments (such as options, futures contracts and swap agreements). Libra Invest Berhad Master Prospectus 65 ASSET ALLOCATION The Fund will invest a minimum of 70% of its NAV in equity and equity-related securities of companies engaged in the exploration for and the development, production and marketing of resources products such as energy, minerals, agriculture and related industries globally which are listed on the stock exchange of countries listed in the MSCI ACWI (except for the excluded countries mentioned above in the investment strategy of the Fund). The Fund may invest a maximum of 28% of the Fund‟s NAV in fixed income securities and a maximum of 15% of the Fund‟s NAV in structured products. Cash or liquid assets will be maintained at all times at a minimum of 2% of the Fund‟s NAV. An internal allocation for cash and other liquid assets will be maintained to ensure that the Fund is able to meet repurchase requests without jeopardising the Fund‟s performance. However, this does not preclude the Manager (after consultation with Trustee) from lowering or raising the liquid assets level beyond the stipulated level to allow the Manager to react to the prevailing market conditions and to manage investment risk when circumstances warrants it. PERFORMANCE BENCHMARK The benchmark of the Fund is MSCI ACWI. Unit holders may refer to www.bloomberg.com and www.reuters.com to obtain the performance benchmark. RISK MANAGEMENT STRATEGIES Please refer to pages 38-41 for detalied explanation of risk management strategies employed by the Manager. TEMPORARY DEFENSIVE POSITIONS During adverse market conditions, or when the Manager anticipates a downturn in market conditions, the Fund may hold up to 100% in liquid assets, which are defensive in nature. The Manager would be expected to re-align the Fund with principal strategies when market conditions turn for the better. PERMITTED INVESTMENTS Unless otherwise prohibited by the relevant authorities or any relevant law and provided always that there are no inconsistencies with the objective of the Fund, the Fund is permitted under the Deed to invest in the following: Securities traded on the Bursa Malaysia or any other market considered as an Eligible Market; Securities not listed in or traded under the rules of an Eligible Market (“Unlisted Securities”); Fixed income securities; Money market instruments; Structured products; Derivatives instruments in Malaysia or any country globally include futures contracts traded in futures market, for hedging purposes only; Securities or instruments listed or traded on foreign markets where the regulatory authority is a member of the International Organization of Securities Commissions (IOSCO); Cash/Liquid assets; and Any other form of investments permitted by the SC which are in line with the Fund‟s objective. INVESTMENT RESTRICTIONS The investment limits/restrictions for LREF are as follows, or any other limits as may be prescribed by the SC from time to time: Exposure Limit: The value of the Fund‟s investments in unlisted securities must not exceed 10% of the Fund‟s NAV. The above exposure limit of unlisted securities does not apply to unlisted securities that are: (a) Equities not listed or quoted on a stock exchange but have been approved by the relevant regulatory authority for such listing and quotation, and are offered directly to the Fund by the issuer; and (b) Structured products. Libra Invest Berhad Master Prospectus 66 Investment Spread Limits: The value of the Fund‟s investments in ordinary shares issued by any single issuer must not exceed 10% of the Fund‟s NAV; The value of the Fund‟s investments in transferable securities and money market instruments issued by any single issuer must not exceed 15% of the Fund‟s NAV; The value of the Fund‟s placement in deposits with any single financial institution must not exceed 20% of the Fund‟s NAV; For investments in derivatives: - the exposure to the underlying assets must not exceed the the investment spread limits stipulated in the Guidelines; - the Fund‟s exposure from its derivatives position should not exceed the Fund‟s NAV at all times. The value of the Fund‟s investments in structured products issued by a single counter-party must not exceed 15% of the Fund‟s NAV. The single counter-party limit may be exceeded if the counter-party has a minimum long term rating that indicates very strong capacity for timely payment of financial obligations provided by any domestic or global rating agency and the structured product has a capital protection feature; The aggregate value of the Fund‟s investments in transferable securities, money market instruments, deposits and structures products issued by or placed with (as the case may be) any single issuer/financial institution must not exceed 25% of the Fund‟s NAV; and The value of the Fund‟s investments in transferable securities and money markets instruments issued by any group of companies must not exceed 20% of the Fund‟s NAV. Investment Concentration Limits: The Fund‟s investments in transferable securities (other than debentures) must not exceed 10% of the securities issued by any single issuer; The Fund‟s investments in debentures must not exceed 20% of the debentures issued by any single issuer and; The Fund‟s investments in money market instruments must not exceed 10% of the instruments issued by any single issuer. However, the limit does not apply to money market instruments that do not have a pre-determined issue size. The investment limits or restrictions mentioned herein shall be complied with at all times based on the most up-to-date value of the Fund‟s investments. Details of the policy on the application of the investment restrictions are set out on page 77. Libra Invest Berhad Master Prospectus 67 Libra SyariahEXTRA Fund SyariahEXTRA Fund is an open-ended unit trust fund investing in a blend of quoted Shariah-compliant equities, sukuk and other Islamic money market instruments and Shariah-compliant derivatives (financial instruments that have no intrinsic value, but derive their value from an underlying instrument such as indices and share prices. The Islamic financial derivatives are used to manage one‟s exposure to unexpected price fluctuations in the Shariah-compliant equity and sukuk markets), which have been approved by SACSC and/or the Shariah Adviser. Its key performance is entirely in search of consistent absolute returns over the medium to long term investment horizon. Background Information The Fund was initially named the Abrar Investment Fund. It was formally renamed as the SyariahEXTRA Fund with the registration of the Second Supplemental Deed with the Securities Commission Malaysia on 3 October 2002. It was first offered to the public on 12 March 1996 as an open-ended Shariah-compliant unit trust fund, seeking to provide investors with medium to long term capital growth, and adequate level of regular income by investing in a diversified portfolio of Shariah-compliant equities and equity-related securities and sukuk. On 9 August 2002, pursuant to the removal of the previous management company, Maybank Trustees Berhad (formerly known as Mayban Trustees Berhad) appointed Libra Invest Berhad to act as the management company for Abrar Investment Fund and on 4 September 2002, the Unit Holders‟ approval was obtained in a Unit Holders‟ meeting to change the investment objective of the Fund. The first prospectus for SyariahEXTRA Fund under the management of Libra Invest Berhad was dated 6 November 2002. INVESTMENT OBJECTIVE The Fund aims to provide investors with medium to long term capital appreciation through investments in specified asset classes by adopting a relatively balanced approach towards equities and fixed income exposure based on the Shariah principles. The Fund aims to achieve capital growth with lower short term volatility than is normally associated with a pure equity fund. Any material changes to the investment objective of the Fund would require Unit Holders‟ approval. SHARIAH ADVISER The Shariah Adviser for this Fund is IBFIM. Please refer to page 131 for details of their roles and responsibilities. INVESTMENT STRATEGY The fund manager for SyariahEXTRA shall generally adopt an active investment strategy which emphasises on appropriate asset allocation, for different market conditions to enhance risk-adjusted returns through riding market cycles, situational opportunities, value emergence and trend reversal plays; and asset class rotation. The fund manager‟s strategy is to identify key sectors or groups of Shariah-compliant stocks that the fund manager believes should perform well under an anticipated economic condition. Individual Shariah-compliant stock selection will then focus on well-managed, financially sound companies with attractive relative valuations and potential for high earnings growth over the medium to long term time frame. The analysis includes ratio analysis on the financial performance of companies, trend analysis to forecast future performance, and stock valuation methods. Occasionally, when market trading is skewed towards index-linked large capitalized Shariah-compliant stocks, the Fund will attempt to track the performance of the FBM EMAS Shariah Index by adjusting its portfolio composition accordingly. While the fund is actively managed, the frequency of its trading strategy will very much depend on market opportunities. ASSET ALLOCATION The Fund will invest between 40% to 60% of its NAV in quoted Shariah-compliant equities and Shariah-compliant equity-related securities. The Fund will also invest between 40% to 60% of its NAV in sukuk with a minimum credit rating of P3 or BBB3 by RAM or equivalent rating by other rating agencies and Islamic liquid assets. Islamic liquid assets will be maintained at all times at a minimum of 2% of the Fund‟s NAV. RISK MANAGEMENT STRATEGIES Please refer to pages 38-41 for detailed explanation of risk management strategies employed by the Manager. Libra Invest Berhad Master Prospectus 68 TEMPORARY DEFENSIVE POSITIONS During adverse market conditions, or when the fund manager anticipates a downturn in market conditions, the Fund may hold significantly higher amount of Islamic liquid and defensive assets (including sukuk with different maturity dates) than that prescribed by their respective mandates. The fund manager would be expected to re-align the Fund with the principal strategies when market conditions turn for the better. PERFORMANCE BENCHMARK The benchmark of the Fund is a composite benchmark comprising 50% of the FBM EMAS Shariah Index and 50% of the Maybank 12-months GIA-i rate. (Source: Lipper) The Fund has a flexible asset allocation between Shariah-compliant equities and sukuk with a bias for absolute (i.e. positive) returns. This means that the Fund is focused on achieving a positive return, even in a downtrend market rather than beating the benchmark. However, as required by the Guidelines, composite benchmark indices for the two major asset classes (Shariah-compliant equity and sukuk) is used to provide investors with a reference point for their investments. Over the long term, Shariah-compliant equity asset allocation would range between 40% – 60% of the Fund‟s NAV, and sukuk and cash would range between 40% – 60% of the Fund‟s NAV. Therefore, the composite benchmark is a reflection of the Fund‟s average asset allocation over the long term of 50% of the Fund‟s NAV in Shariah-compliant equity and 50% of the Fund‟s NAV in sukuk and cash. By definition, absolute returns are the static measure of the actual return an asset achieves over a period of time. The Fund seeks to deliver positive returns independent of how the sukuk, cash and Shariah-compliant equity market perform. The fund manager focuses on achieving positive returns, even in a downtrend market, rather than beating the benchmark. PERMITTED INVESTMENTS Unless otherwise prohibited by the relevant authorities or any relevant law and provided always that there are no inconsistencies with the objective of the Fund, the Fund is permitted under the Deed to invest in the following: Shariah-compliant securities of Malaysian companies listed on the recognised stock exchange; Units of unrelated Shariah-compliant property trust funds listed on Bursa Malaysia; Unlisted Shariah-compliant securities that are not traded in or under the rules of an eligible market; Government and semi-government sukuk, investment accounts, and Islamic money market instruments; Cagamas sukuk, sukuk which are either bank-guaranteed or carrying at least a BBB3 rating by RAM or equivalent rating by other rating agencies; Government Investment Issues, Islamic accepted bills, Malaysian currency balances in hand and Islamic deposits (Malaysian currency) with licensed financial institutions; Islamic futures contracts traded on an exchange approved for hedging purposes only; In conformity with Shariah requirements the securities of companies engages in the following activities or producing the following categories of products shall not be included in the Fund- conventional banking, insurance and financial services; gambling; alcohol beverages; non-halal foods; interest bearing money market instruments; and any further restrictions as may be determined by the relevant authorities;and Any other kind of Shariah-compliant investment or Shariah-compliant investments as permitted by the relevant authorities from time to time. In conformity with Shariah requirements, the securities of companies engaged in the following activities or producing the following categories of products shall not be included in the Fund – conventional banking, insurance and financial services; gambling; alcoholic beverages; non-halal foods; interest bearing money market instruments; and any further restrictions as may be determined by the SACSC and/or the Shariah Adviser from time to time. In addition, the Fund will only invest in sukuk. INVESTMENT RESTRICTIONS The investment limits/restrictions for SyariahEXTRA shall be as follows, or any other limits as may be prescribed by the SC from time to time: Libra Invest Berhad Master Prospectus 69 Exposure Limit: The value of the Fund‟s investments in unlisted Shariah-compliant securities must not exceed 10% of the Fund‟s NAV. The above exposure limit of unlisted Shariah-compliant securities does not apply to unlisted Shariah-compliant securities that are Shariah-compliant equities not listed or quoted on a stock exchange but have been approved by the relevant regulatory authority for such listing and quotation, and are offered directly to the Fund by the issuer and sukuk traded on an organized OTC market. Investment Spread Limits: The value of the Fund‟s investments in ordinary Shariah-compliant shares issued by any single issuer must not exceed 10% of the Fund‟s NAV; The value of the Fund‟s investments in transferable Shariah-compliant securities and Islamic money market instruments issued by any single issuer must not exceed 15% of the Fund‟s NAV; The value of the Fund‟s placement in Islamic deposits with any single financial institution must not exceed 20% of the Fund‟s NAV; The Fund‟s exposure from its Shariah-compliant derivatives position should not exceed the Fund‟s NAV at all times; For investments in Shariah-compliant derivatives, the exposure to the underlying assets of that Shariah-compliant derivative must not exceed the investment spread limits stipulated in the Guidelines and the value of the Fund‟s OTC Shariah-compliant derivative transaction with any single counter-party must not exceed 10% of the Fund‟s NAV; The value of the Fund‟s investments in Islamic structured products issued by a single counter-party must not exceed 15% of the Fund‟s NAV; The aggregate value of the Fund‟s investments in transferable Shariah-compliant securities, Islamic money market instruments, Islamic deposits, OTC Shariah-compliant derivatives and Islamic structured products issued by or placed with (as the case may be) any single issuer/institution must not exceed 25% of the Fund‟s NAV; The value of the Fund‟s investments in units/shares of any Shariah-compliant collective investment scheme must not exceed 20% of the Fund‟s NAV; and The value of the Fund‟s investments in transferable Shariah-compliant securities and Islamic money market instruments issued by any group of companies must not exceed 20% of the Fund‟s NAV. Investment Concentration Limits The Fund‟s investments in transferable Shariah-compliant securities (other than sukuk) must not exceed 10% of the Shariah-compliant securities issued by any single issuer; The Fund‟s investments in sukuk must not exceed 20% of the sukuk issued by any single issuer; The Fund‟s investments in Islamic money market instruments must not exceed 10% of the instruments issued by any single issuer. However, the limit does not apply to Islamic money market instruments that do not have a predetermined issue size; and The Fund‟s investments in Shariah-compliant collective investment schemes must not exceed 25% of the units/shares in any one of the Shariah-compliant collective investment scheme. Details of the policy on the application of the investment restrictions are set out on page 77. Libra Invest Berhad Master Prospectus 70 Libra Amanah Saham Wanita ASnita is an open-ended unit trust fund, investing principally in quoted Shariah-compliant equity and equity-related securities. Background Information ASnita was established in 1998 to help women enhance their role in society through greater participation in the economic life of the nation. This will be achieved primarily by facilitating the development of Malaysian women as informed savers and investors who have a high degree of financial independence. ASnita was originally established pursuant to a Deed of Trust dated 30 April 1998 entered between Metrowangsa Unit Trusts Berhad as the management company and Maybank Trustees Berhad (formerly known as Mayban Trustees Berhad) as the Trustee of the Fund. In May 2003, pursuant to the removal of the previous management company, Libra Invest Berhad was appointed by Mayban Trustees Berhad to act as the management company for ASnita. The first prospectus for ASnita under the management of LIB was dated 1 July 2004. INVESTMENT OBJECTIVE The primary objective of the Fund is to offer relatively good and safe capital growth over the long term period by investing principally in an actively-managed, diversified portfolio of Shariah-compliant equities and equity-related securities. Any material changes to the investment objective of the Fund would require Unit Holders‟ approval. SHARIAH ADVISER The Shariah Adviser for this Fund is IBFIM. Please refer to page 131 for details of their roles and responsibilities. INVESTMENT STRATEGY The fund manager for ASnita shall generally adopt an active investment strategy which emphasises on appropriate asset allocation, for different market conditions to enhance risk-adjusted returns through riding market cycles, situational opportunities, value emergence and trend reversal plays and asset class rotation. The fund manager‟s strategy is to identify key sectors or groups of Shariah-compliant stocks that the fund manager believes should perform well under an anticipated economic condition. Individual Shariah-compliant stock selection will then focus on well-managed, financially sound companies with attractive relative valuations and potential for high earnings growth over the medium to long term time frame. The analysis includes ratio analysis on the financial performance of companies, trend analysis to forecast future performance, and stock valuation methods. Occasionally, when market trading is skewed towards index-linked large capitalized Shariah-compliant stocks, the Fund will attempt to track the performance of the FBM EMAS Shariah Index by adjusting its portfolio composition accordingly. While the fund is actively managed, the frequency of its trading strategy will very much depend on market opportunities. ASSET ALLOCATION The Fund will invest a minimum of 70% of its NAV in quoted Shariah-compliant equities and equity-related securities. Islamic liquid assets will be maintained at all times at a minimum of 2% of the Fund‟s NAV. RISK MANAGEMENT STRATEGIES Please refer to pages 38-41 for detailed explanation of risk management strategies employed by the Manager. Libra Invest Berhad Master Prospectus 71 TEMPORARY DEFENSIVE POSITIONS During adverse market conditions, or when the fund manager anticipates a downturn in market conditions, the Fund may hold significantly higher amount of Islamic liquid and defensive assets (including sukuk with different maturity dates) than that prescribed by their respective mandates. The fund manager would be expected to re-align the Fund with the principal strategies when market conditions turn for the better. PERFORMANCE BENCHMARK The benchmark of the Fund is the FBM EMAS Shariah Index. (Source: Lipper) PERMITTED INVESTMENTS Unless otherwise prohibited by the relevant authorities or any relevant law and provided always that there are no inconsistencies with the objective of the Fund, the Fund is permitted under the Deed to invest in the following: Ordinary Shariah-compliant shares and other quoted Shariah-compliant equity-related securities such as convertible Shariah-compliant securities, Shariah-compliant preference shares, Shariah-compliant warrants listed on Bursa Malaysia or traded in or under the rules of other recognised stock exchange in Malaysia or foreign markets permitted by the relevant authorities; units or shares in other Shariah-compliant collective investment schemes; sukuk as well as short term Islamic money market instruments and any other kinds of Shariah-compliant investments as agreed by the Management Company and Trustee, from time to time; Islamic futures contract traded in futures market of an exchange approved under the Act, provided that the participation is for hedging purposes only; In conformity with Shariah requirements the securities of companies engages in the following activities or producing the following categories of products shall not be included in the Fund- conventional banking, insurance and financial services; gambling; alcohol beverages; non-halal foods; interest bearing money market instruments; and any further restrictions as may be determined by the relevant authorities;and Any other kind of Shariah-compliant investment or Shariah-compliant investments as permitted by the relevant authorities from time to time. In conformity with Shariah requirements, the securities of companies engaged in the following activities or producing the following categories of products shall not be included in the Fund – conventional banking, insurance and financial services; gambling; alcoholic beverages; non-halal foods; interest bearing money market instruments; and any further restrictions as may be determined by the relevant authorities. In addition, the Fund will only invest in stocks that are classified as Shariah-compliant by SACSC or sukuk. INVESTMENT RESTRICTIONS The investment limits/restrictions for ASnita shall be as follows, or any other limits as may be prescribed by the SC from time to time: Exposure Limit: The value of the Fund‟s investments in unlisted Shariah-compliant securities must not exceed 10% of the Fund‟s NAV. The above exposure limit of unlisted Shariah-compliant securities does not apply to unlisted Shariah-compliant securities that are Shariah-compliant equities not listed or quoted on a stock exchange but have been approved by the relevant regulatory authority for such listing and quotation, and are offered directly to the Fund by the issuer. Investment Spread Limits: The value of the Fund‟s investments in Shariah-compliant ordinary shares issued by any single issuer must not exceed 10% of the Fund‟s NAV; The value of the Fund‟s investments in transferable Shariah-compliant securities and Islamic money market instruments issued by any single issuer must not exceed 15% of the Fund‟s NAV; The value of the Fund‟s placement in Islamic deposits with any single financial institution must not exceed 20% of the Fund‟s NAV; The Fund‟s exposure from its Shariah-compliant derivatives position should not exceed the Fund‟s NAV at all times; Libra Invest Berhad Master Prospectus 72 For investments in Shariah-compliant derivatives, the exposure to the underlying assets of that Shariah-compliant derivative must not exceed the investment spread limits stipulated in the Guidelines and the value of the Fund‟s OTC Shariah-compliant derivative transaction with any single counter-party must not exceed 10% of the Fund‟s NAV; The aggregate value of the Fund‟s investments in transferable Shariah-compliant securities, Islamic money market instruments, Islamic deposits, OTC Shariah-compliant derivatives and Islamic structured products issued by or placed with (as the case may be) any single issuer / financial institution must not exceed 25% of the Fund‟s NAV; The value of the Fund‟s investments in units/shares of any Shariah-compliant collective investment scheme must not exceed 20% of the Fund‟s NAV; and The value of the Fund‟s investments in transferable Shariah-compliant securities and Islamic money market instruments issued by any group of companies must not exceed 20% of the Fund‟s NAV. Investment Concentration Limits The Fund‟s investments in transferable Shariah-compliant securities (other than sukuk) must not exceed 10% of the Shariah-compliant securities issued by any single issuer; The Fund‟s investments in sukuk must not exceed 20% of the sukuk issued by any single issuer; The Fund‟s investments in Islamic money market instruments must not exceed 10% of the instruments issued by any single issuer. However, the limit does not apply to Islamic money market instruments that do not have a predetermined issue size; and The Fund‟s investments in Shariah-compliant collective investment schemes must not exceed 25% of the units/shares in any one of the Shariah-compliant collective investment scheme. Details of the policy on the application of the investment restrictions are set out on page 77. Libra Invest Berhad Master Prospectus 73 Libra ASnitaBOND Fund ASnitaBOND Fund is an open-ended unit trust fund, investing principally in a portfolio comprising highly liquid, near cash instruments as well as short to medium term sukuk. The Fund expects to maintain a weighted average portfolio maturity appropriate to its stated investment objective. Under normal circumstances, the weighted average term to maturity of the investments is expected to be approximately 2 to 5 years. INVESTMENT OBJECTIVE The Fund aims to provide capital preservation with regular income over the short to medium term period by investing in Islamic money market instruments and sukuk. Any material changes to the investment objective of the Fund would require Unit Holders‟ approval. SHARIAH ADVISER The Shariah Adviser for this Fund is IBFIM. Please refer to page 131 for details of their roles and responsibilities. INVESTMENT STRATEGY Before constructing the portfolio of a particular fund, the fund manager will analyse the macro environment to enhance risk-adjusted returns by identifying market cycles, situational opportunities, value emergence, trend reversal plays and asset class rotation. The Fund will adopt an investment strategy which will provide returns comparable to that of short term Islamic money market deposits, and which will at the same time, preserve the Fund‟s principal value and maintain a high degree of liquidity. With respect to sukuk, the fund manager will focus on consistent, above-average returns from fundamental research rather than from frequent trading. The frequency of its trading strategy will depend on market opportunities. Emphasis is placed on credit-worthiness, investment-grade issuers of sukuk. A disciplined application of the top-down investment process is therefore applied, with due consideration given to the credit standing of individual issuers. The fund manager will seek to diversify the investments of the Fund across sectors and individual sukuk in order to minimise the risk profile of the portfolio. ASSET ALLOCATION The Fund will invest a minimum of 70% of its NAV in sukuk. Cash, Islamic deposits and other Islamic liquid assets will be maintained at all times at a minimum of 2% of the Fund‟s NAV. RISK MANAGEMENT STRATEGIES Please refer to pages 38-41 for detailed explanation of risk management strategies employed by the Manager. TEMPORARY DEFENSIVE POSITIONS During adverse market conditions, or when the fund manager anticipates a downturn in market conditions, the Fund may hold significantly higher amount of Islamic liquid and defensive assets (including sukuk with different maturity dates) than that prescribed by their respective mandates. The fund manager would be expected to re-align the Fund with the principal strategies when market conditions turn for the better. PERFORMANCE BENCHMARK The benchmark of the Fund is the Maybank 6-months GIA-i Tier 1 Rate. (Source: Lipper) Investment in the Fund is not the same as placement in a deposit with a financial institution. The capital and returns of the Fund are not guaranteed and there are risks involved. Hence, the risk profile of the Fund does not reflect that of a general investment account. Libra Invest Berhad Master Prospectus 74 PERMITTED INVESTMENTS Unless otherwise prohibited by the relevant authorities or any relevant law and provided always that there are no inconsistencies with the objective of the Fund, the Fund is permitted under the Deed to invest in the following: Government and semi-government sukuk, General Investment Accounts, Special Investment Account, Islamic money market instruments, private sukuk, Islamic treasury products listed on the Bursa Malaysia; Islamic instruments issued by bank and financial institutions issued instruments; Government Investment Issues, Islamic Accepted Bills, Malaysia currency balances in hand and Islamic deposits (Malaysian currency) with authorised financial institutions including investment certificates; Cagamas sukuk, sukuk which are either bank-guaranteed or carrying at least a BBB3 rating by RAM or equivalent rating by other rating agencies; Islamic futures contracts traded on an exchange approved under the Act provided that, the participation is for hedging purposes and is approved by the Shariah Adviser; and Any other kind of Shariah-compliant investments in Malaysia and outside Malaysia as agreed upon by the Management Company and Trustee. In conformity with Shariah requirements, the securities of companies engaged in the following activities or producing the following categories of products shall not be included in the Fund – conventional banking, insurance and financial services; gambling; alcoholic beverages; non-halal foods; interest bearing money market instruments; and any further restrictions as may be determined by the SASCS and/or Shariah Adviser from time to time. In addition, the Fund will only invest in sukuk. INVESTMENT RESTRICTIONS The investment limits/restrictions for ASnitaBOND shall be as follows, or any other limits as may be prescribed by the SC from time to time: Exposure Limit: The value of the Fund‟s investments in unlisted Shariah-compliant securities must not exceed 10% of the Fund‟s NAV. The above exposure limit of unlisted Shariah-compliant securities does not apply to unlisted Shariah-compliant securities that are sukuk traded on an organized OTC market. Investment Spread Limits: The value of the Fund‟s investments in sukuk issued by any single issuer must not exceed 20% of the Fund‟s NAV. The single issuer limit may be increased to 30% of the Fund‟s NAV if the sukuk are rated by any domestic or global rating agency to be of the best quality and offer highest safety for timely payment of profit and principal; The value of the Fund‟s investments in sukuk issued by any one group of companies must not exceed 30% of the Fund‟s NAV; The value of the Fund‟s placement in Islamic deposits with any single financial institution must not exceed 20% of the Fund‟s NAV; The aggregate value of the Fund‟s investments in transferable Shariah-compliant securities, Islamic money market instruments, Islamic deposits and Islamic structured products issued by or placed with (as the case may be) any single issuer / financial institution must not exceed 25% of the Fund‟s NAV. However, the aggregate value of the Fund‟s investment must not exceed 30% of the Fund‟s NAV where the single issuer limit is increased to 30% of the Fund‟s NAV if the sukuk are rated by any domestic or global rating agency to be of the best quality and offer highest safety for timely payment of profit and principal; The value of the Fund‟s investments in units/shares of any Shariah-compliant collective investment scheme must not exceed 20% of the Fund‟s NAV; and No maximum limit is imposed if the issuer is the Malaysian government or BNM or the issue is an issue guaranteed by any of the aforementioned institutions. Investment Concentration Limits: The Fund‟s investments in sukuk must not exceed 20% of the sukuk issued by any single issuer; The Fund‟s investments in Islamic money market instruments must not exceed 10% of the instruments issued by any single issuer. However, the limit does not apply to Islamic money market instruments that do not have a predetermined issue size; and The Fund‟s investments in Shariah-compliant collective investment schemes must not exceed 25% of the units/shares in any one of the Shariah-compliant collective investment scheme. Details of the policy on the application of the investment restrictions are set out on page 77. Libra Invest Berhad Master Prospectus 75 Libra Shariah Liquidity Fund Series 2 The Libra Shariah Liquidity Fund Series 2 is an open-ended unit trust fund investing in Ringgit-denominated short term Islamic deposits with Financial Institutions. INVESTMENT OBJECTIVE The Fund seeks to preserve capital¹ while providing steady income² by investing in short term Islamic deposits. Any material changes to the investment objective of the Fund would require Unit Holders‟ approval. Note: ¹ Unit Holders are to note that this is not a capital guaranteed Fund. Unit Holders’ capital is neither guaranteed nor protected. ² All income distribution will be automatically reinvested into additional Units. SHARIAH ADVISER The Shariah Adviser for this Fund is IBFIM. Please refer to page 131 for details of their roles and responsibilities. INVESTMENT STRATEGY The Fund will invest 100% of its NAV in Ringgit-denominated short term Islamic deposits with Financial Institutions. The Manager shall adopt an active investment strategy by monitoring short term profit rates offered by Financial Institutions on a daily basis. The Manager seeks to maximize the Fund‟s returns by actively sourcing for and subsequently investing in short term Islamic deposits that offer the highest profit rates available. Note: 1. The Fund’s investment in Islamic deposits may be lower than 100% to allow for payments of fees and expenses as permitted under the Deed. 2. The Fund does not have a minimum rating requirement for the Financial Institutions that it invests short term Islamic deposits with. ASSET ALLOCATION The Fund‟s asset allocation is as follows: Asset Class % of the Fund’s NAV Short term Islamic deposits 100% Note: The Fund’s investment in Islamic deposits may be lower than 100% to allow for payments of fees and expenses as permitted under the Fund. RISK MANAGEMENT STRATEGIES Please refer to pages 38-41 for detailed explanation of risk management strategies employed by the Manager. TEMPORARY DEFENSIVE POSITIONS No temporary defensive position will be taken as the Fund will only invest in Islamic deposits. PERFORMANCE BENCHMARK Maybank 1-month GIA-i Tier 1 Rate (Source: www.maybank2u.com.my). Libra Invest Berhad Master Prospectus 76 PERMITTED INVESTMENT Unless otherwise prohibited by the relevant authorities or any relevant law and provided always that there are no inconsistencies with the objective of the Fund, the Fund is permitted under the Deed to invest in the following: Malaysian Ringgit denominated Islamic deposits placed with financial institutions. INVESTMENT RESTRICTIONS The investment restrictions of the Fund are as follows: The value of the Fund‟s investments in permitted investment which have a maturity period of not more than 365 days must not be less than 90% of the Fund‟s NAV; The value of the Fund‟s investments in permitted investment which have a maturity period of more than 365 days but fewer than 732 days must not exceed 10% of the Fund‟s NAV; and The value of the Fund‟s placements in Islamic deposits with any single Financial Institution must not exceed 20% of the Fund‟s NAV. Details of the policy on the application of the investment restrictions are set out on page 77. Investment in the Fund is not the same as placement in a deposit with a financial institution. There are risks involved and investors should rely on their own evaluation to assess the merits and risks when investing in the Fund. Libra Invest Berhad Master Prospectus 77 7. ADDITIONAL INFORMATION IN RELATION TO THE FUNDS Policy on Application of Investment Restrictions of the Funds IncomeEXTRA, EquityEXTRA, BondEXTRA, MoneyEXTRA, VersatileEXTRA, DividendEXTRA, TacticalEXTRA, LCLAF, LLF, LREF, SyariahEXTRA, ASnita, ASnitaBOND and LSLF Series 2. Any entitlement accruing on the investment held may be excluded when determining compliance with the investment restrictions. However, the entitlement should not be exercised if the exercise results in the breach of any restrictions specified. Nevertheless, the right of convertibility may be exercised even if it results in the breach of the restrictions, provided there are justifiable reasons and prior approval of the Trustee has been obtained, and the Management Company takes all necessary steps and actions to rectify the breach within a reasonable time of not more than one (1) month from the date of the breach. A 5% allowance in excess of any limit or restriction may be permitted, where the breach occurred through an appreciation or depreciation of the NAV of the Fund, whether as a result of an appreciation or depreciation in the value of the investments, or as a result of repurchase of units or payment made by the Fund. The Management Company should not make any further acquisitions and will take necessary steps and actions to rectify the breach within a reasonable period of not more than three (3) months from the date of the breach. Such limits and restrictions, however, do not apply to securities that are issued or guaranteed by the government of Malaysia or BNM. As the minimum liquid assets level for the Fund is specified to ensure sufficient short term liquidity in the Fund to meet operating expenses and possible redemption of the Fund‟s units, where the level of liquid assets for the Fund drop below the minimum level specified, the Management Company will take all necessary steps and actions to meet the minimum level specified within ten (10) calendar days. If a longer period is required, such period shall be determined by the Management Company after consultation with the Trustee. Liquid assets of the Fund may be held in the form of cash, net creation/cancellation, net amount receivable/(payable) from the brokers/dealers, deposits with licensed institutions and/or other institutions licensed or approved to accept deposits and any other instruments, including short term commercial papers, which are convertible into cash within seven (7) days as may be approved by the Trustee. Liquid assets of SyariahEXTRA, ASnita, ASnitaBOND and LSLF Series 2 must comply with Shariah requirements. Libra Invest Berhad Master Prospectus 78 Valuation of Assets The Management Company will ensure that all the assets of the respective Funds are valued at fair value and at all times be in compliance with Schedule B of the Guidelines. Quoted securities and suspended securities Investments in quoted securities will be valued based on the last done prices as at the close of the Business Day of the respective markets on the same calendar day. In the event of a suspension in the quotation of the securities for a period exceeding 14 days, or such shorter period as agreed by the Trustee, or when the market price is not reflective of the fair value of the securities due to abnormal market situation, then the securities should be valued at fair value, as determined in good faith by the Management Company based on methods or bases approved by the Trustee after appropriate technical consultation. Unquoted fixed income securities/sukuk Unquoted fixed income securities/sukuk are measured at fair values. The fair values of unquoted fixed income securities/sukuk are generally obtained from the indicative market yields quoted by a bond pricing agency registered with the SC. However, where the fund manager is of the opinion that the value of the fixed income securities/sukuk differs from the indicative yields quoted by the bond pricing agency by more than 20 basis points, the fund manager will value the securities based on a pricing model that reflects the prevailing market conditions provided it complies with the requirement in the Guidelines. Quoted securities dividends Dividends from quoted securities are recognised on the ex-dividend date. Derivatives Derivative instruments are marked-to-market on a daily basis. Any changes in the value of the contracts are adjusted for directly in the margin accounts, with a corresponding recognition in the unrealized reserves. Collective investment schemes Investments in collective investment schemes will be valued, based on the last published NAV per Unit or if unavailable, other appropriate method as determined by the Management Company and approved by the Trustee. Deposits Valuation for investment in deposits is based on a fixed rate with interest/profit accrued on a daily basis. Structured products The valuation of structured products is marked-to-market on a daily basis using valuation prices quoted by the structured products provider. Money market instruments Valuation of money market instruments shall be done on a daily basis using accretion method of the discount rate or yield to maturity at which the instruments were purchased. Valuation Point for the Funds The valuation of NAV of Funds with no foreign investments is calculated at the end of each Business Day. In the case of Funds with investments in foreign markets, the valuation time may be extended to 10.00 a.m. local time of the next Business Day (T+1 day) due to the different time zones of foreign markets. Consequently, the daily NAV of Funds with foreign investments may be published two (2) Business Days later instead of the next Business Day. The foreign exchange rate used for valuation of foreign investment is based on bid rate obtained from Reuters or Bloomberg at U.K. time 4.00 p.m. the same day. Unit Holders may contact the Management Company or visit our website at www.librainvest.com to obtain the latest NAV of the Funds. Libra Invest Berhad Master Prospectus 79 8. SHARIAH INVESTMENT GUIDELINES Shariah Investment Guidelines adopted by IBFIM, Cleansing Process and Zakat (tithe) for the Fund 1. Shariah Investment Guidelines The following matters are adopted by IBFIM in determining the Shariah status of investments of the Fund. INVESTMENT IN MALAYSIA Equity: Reference for investment in local securities is based on the list of Shariah-compliant securities issued by the SACSC twice yearly on the last Friday of May and November which is readily available at the SC‟s website. However, for Initial Public Offering (“IPO”) companies that have yet to be determined the Shariah status by the SACSC, IBFIM adopts the following analysis as a temporary measure in determining its Shariah status until the SACSC releases the Shariah status of the respective companies. Core Business Activities Analysis Companies whose activities are not contrary to the Shariah will be classified as Shariah-compliant securities. On the other hand, companies will be classified as Shariah non-compliant if they are involved in the following core business activities: a) Conventional financial services; b) Gambling and gaming; c) Manufacture or sale of non-halal products or related products (e.g. pork and liquor); d) Manufacture or sale of tobacco-based products or related products; e) Pornography; f) Weaponry; g) Entertainment activities that are not permitted by the Shariah; and h) Other activities considered non-permissible according to the Shariah. Mixed Business Activities Analysis For companies with activities comprising both permissible and non-permissible elements, IBFIM applies two analyses before they can be classified as Shariah-compliant. The analyses are as follows: i) Qualitative Analysis In this analysis, IBFIM will look into aspects of general public perception of the companies‟ images, core businesses which are considered important and maslahah (beneficial) to the Muslim ummah and the country, the non-permissible elements are very small and involve matters like umum balwa (common plight and difficult to avoid), ‘uruf (custom) and rights of the non-Muslim community which are accepted by the Shariah. ii) Quantitative Analysis Companies which passed the above qualitative analysis will be further subjected to quantitative analysis. IBFIM deduces the following to ensure that they are lower than the Shariah tolerable benchmarks: a) Business Activity Benchmarks The 5% benchmark would be applicable to the following business activities: Conventional banking; Conventional insurance; Gambling; Libra Invest Berhad Master Prospectus 80 Liquor and liquor-related activities; Pork and pork-related activities; Non-halal food and beverages; Shariah non-compliant entertainment; Interest income1 from conventional accounts and instruments (including interest income awarded arising from a court judgement or arbitrator); Dividends2 from Shariah non-compliant investments; Tobacco and tobacco-related activities; and Other activities considered non-compliant according to Shariah. The 20% benchmark would be applicable to the following activities: Hotel and resort operations; Share trading; Stockbroking business; Rental received from Shariah non-compliant activities; and Other activities considered non-compliant according to Shariah. The contribution of Shariah non-compliant activities to the overall revenue/sales/turnover/income and profit before tax of the companies will be calculated and compared against the relevant business activity benchmarks. Note: 1 Interest income will be compared against the companies‟ overall revenue/sales/turnover/income. 2 Dividends will be compared against the companies‟ profit before taxation. b) Financial Ratio Benchmarks The financial ratios applied are as follows: Cash over Total Assets Cash will only include cash placed in conventional accounts and instruments, whereas cash placed in Islamic accounts and instruments will be excluded from the calculation. Debt over Total Assets Debt will only include interest-bearing debt whereas Islamic debt/financing or sukuk will be excluded from the calculation. Both ratios, which are intended to measure riba and riba-based elements within a companies‟ balance sheet, must be lower than 33%. Should any of the above deductions fail to meet the benchmarks, IBFIM will not accord Shariah-compliant status for the companies. Sukuk and Islamic Money Market Instruments: IBFIM will verify any sukuk and/or Islamic money market instruments based on the data available at Bond Info Hub (www.bondinfo.bnm.gov.my) and Fully Automated System For Issuing/Tendering (https://fast.bnm.gov.my). Libra Invest Berhad Master Prospectus 2. 81 Cleansing Process for the Fund a) Wrong Investment This refers to Shariah non-compliant investment made by the fund manager. The said investment will be disposed of/withdrawn with immediate effect. In the event of the investment resulted in gain (through capital gain and/or dividend/profit), the gain is to be channelled to Baitul Mal or any other charitable bodies as advised by the Shariah Adviser. If the disposal of the investment resulted in losses to the Fund, the losses are to be borne by the Fund Manager. b) Reclassification of Shariah Status of the Fund’s Investment Reclassification of Shariah status refers to security which is reclassified as Shariah non-compliant by the SACSC, the Shariah Adviser or the Shariah Boards of the relevant Islamic Indices. The said security will be disposed soonest practical, once the total amount of dividends received and the market value of the Shariah non-compliant security held equal the original investment cost. Any capital gains arising from the disposal of the Shariah non-compliant security made at the time of the announcement can be kept by the Fund. However, any excess capital gains derived from the disposal after the announcement day at a market price that is higher than the closing price on the announcement day is to be channelled to Baitul Mal or any charitable bodies as advised by the Shariah Adviser. 3. Zakat (tithe) for the Fund The Fund does not pay zakat on behalf of Muslim individuals and Islamic legal entities who are investors of the Fund. Thus, investors are advised to pay zakat on their own. Libra Invest Berhad Master Prospectus 82 9. FUNDS PERFORMANCE Libra IncomeEXTRA Fund Average Total Returns Average Total Returns (%)* 3 years 5 years 23.97 62.56 1 year 7.88 IncomeEXTRA (Inception date: 10 Sept 1999) Benchmark: (Note 1) Maybank 6-months fixed deposit rate and IE benchmark 5.94 17.35 28.13 10 years 38.44 44.47 For the year 2015, the Fund registered a positive return of 7.88%, outperforming the benchmark return of 5.94%. For 2016, we maintain our cautious stance and would continue to hold high cash positions given the uncertainties in the market. The Fund would continue to invest in equities that offer high dividend yields as well as selected picks of fundamentally undervalued stocks. * The average total returns of the above Fund for the respective financial years are calculated based on NAV to NAV. Annual Total Returns IncomeEXTRA (Inception date: 10 Sept 1999) Benchmark: (Note 1) Maybank 6-months fixed deposit rate and IE benchmark 2006 2007 2008 Annual Total Returns (%)** 2009 2010 2011 2012 2013 2014 2015 4.51 4.28 -5.06 3.80 -20.72 16.07 12.98 -0.33 15.30 7.88 3.47 3.45 3.42 2.25 2.54 2.99 8.83 5.53 4.96 5.94 Source: Lipper ** The average total returns of the above Fund for the respective financial years are calculated based on NAV to NAV. Note 1: Effective 16 August 2011, the Fund has adopted a new mandate and is now classified as a balanced fund, where the new benchmark is IE Benchmark (50% MSCI AC Asia Pacific ex-Japan and 50% Maybank 12-months fixed deposit rate). Where applicable, the Benchmark returns are the time-weighted average returns of Maybank 6-months fixed deposit rate and IE Benchmark. Libra Invest Berhad Master Prospectus 83 Libra EquityEXTRA Fund Average Total Returns 1 year -6.43 EquityEXTRA (Inception date: 10 Sept 1999) Benchmark: FBM 100 -2.89 Average Total Returns (%)* 3 years 5 years 20.06 32.96 1.49 13.38 10 years 122.77 96.00 For the year 2015, the Fund posted a loss of 6.43%, underperforming the FBM100 benchmark, which posted a negative return of 2.89% for the same year. This was mainly due to the heightened volatility and sell down in the domestic market caused by plunging oil prices and huge foreign fund outflow. For 2016, we will continue to remain cautious and maintain a high cash position given the uncertainties of the market. The Fund will continue to invest in domestic companies with strong balance sheet and resilient earnings. * The average total returns of the above Fund for the respective financial years are calculated based on NAV to NAV. Annual Total Returns 2006 2007 2008 Annual Total Returns (%)** 2009 2010 2011 2012 2013 2014 2015 EquityEXTRA 23.80 (Inception date: 10 Sept 1999) Benchmark: FBM 100 21.83 27.18 -29.89 30.44 16.35 1.40 9.22 20.77 6.25 -6.43 31.82 -39.33 45.71 21.76 1.94 9.60 11.39 -6.17 -2.89 Source: Lipper ** Annual total returns of the above Fund represents annualized returns over the specified period assuming reinvestment of all distributions. Libra Invest Berhad Master Prospectus 84 Libra BondEXTRA Fund Average Total Returns Average Total Returns (%)* 3 years 5 years 12.30 34.22 1 year 5.21 BondEXTRA (Inception date: 8 Oct 2002) Benchmark: Maybank 12-months fixed deposit rate 3.30 9.96 16.86 10 years 55.28 37.50 For the year 2015, the Fund delivered outstanding returns of 5.21%, significantly outperforming its benchmark, the 12-month Maybank Fixed Deposit returns of 3.30%. The remarkable performance was due to gains from existing investment holdings, bond recoveries, and further boosted by capital appreciation from new investments of carefully selected high grade bonds, which benefited from positive movements in government and corporate bond markets. New investments are made after thorough analysis on domestic and global economic environment, market trends and regional fund flows. Moving forward, the Fund will continue to give strong emphasis on bond issuers‟ credit strength focusing on cash flow consistency, stringent structure and experienced management teams. The Fund is invested in higher yielding fixed income securities in order to provide aggressive long term capital growth. The Fund is expected to continue to benefit from capital appreciation of its bond portfolio, interest income from the coupon attached to the debt instruments and the positively sloped yield curve that commensurate with its duration and risk profile. The Fund achieved its investment objective of providing aggressive long term capital growth. * The average total returns of the above Fund for the respective financial years are calculated based on NAV to NAV. Annual Total Returns BondEXTRA (Inception date: 8 Oct 2002) Benchmark: Maybank 12-months fixed deposit rate 2006 2007 2008 Annual Total Returns (%)** 2009 2010 2011 2012 2013 2014 2015 5.23 4.98 -3.20 9.38 -1.08 12.19 6.53 1.07 5.61 5.21 3.80 3.70 3.68 2.62 2.74 3.03 3.15 3.15 3.20 3.30 Source: Lipper ** Annual total returns of the above Fund represents annualized returns over the specified period assuming reinvestment of all distributions. Libra Invest Berhad Master Prospectus 85 Libra MoneyEXTRA Fund Average Total Returns Average Total Returns (%)* 3 years 5 years 11.05 18.53 1 year 3.93 MoneyEXTRA (Inception date: 8 Oct 2002) Benchmark: Average repurchase agreement (Repo) rate 3.29 9.79 16.35 10 years 40.06 34.31 In 2015, the Fund continues to produce remarkable returns, outperforming its benchmark with returns of 3.93% against the benchmark Repo return of 3.29%. The Fund‟s return was derived from its holdings in short term commercial papers and fixed income assets, as well as short term deposit placements. The Fund successfully met its objective to maintain a high degree of liquidity while providing consistent current income to its investors. It will continue its philosophy of providing conservative returns while maintaining fluidity of funds for its investors to meet short term needs. * The average total returns of the above Fund for the respective financial years are calculated based on NAV to NAV. Annual Total Returns MoneyEXTRA (Inception date: 8 Oct 2002) Benchmark: Average repurchase agreement (Repo) rate 2006 2007 2008 Annual Total Returns (%)** 2009 2010 2011 2012 2013 2014 2015 3.47 3.58 3.55 3.37 3.01 3.19 3.43 3.13 3.61 3.93 3.25 3.36 3.45 2.12 2.37 2.86 3.03 3.03 3.16 3.29 Source: Lipper ** Annual total returns of the above Fund represents annualized returns over the specified period assuming reinvestment of all distributions. Libra Invest Berhad Master Prospectus 86 Libra VersatileEXTRA Fund Average Total Returns 1 year 5.79 VersatileEXTRA (Inception date: 28 Oct 2002) Benchmark: 50% FBM 100 and 50% Maybank 12months fixed deposit rate 0.30 Average Total Returns (%)* 3 years 5 years 17.62 27.76 5.99 15.75 10 years 81.07 67.33 For the year 2015, the Fund registered returns of 5.79% outperforming its benchmark return of 0.3%, reversing the loss of 1.57% recorded for 2014. Performance largely came from exposure close to the maximum allowable 30% to regional markets which provided decent capital gains and foreign currency gains on the back of the weak Ringgit. Though we remain cautious for 2016 and continue to maintain high cash levels given the uncertainties of the market, we continue to maintain a high exposure to selective regional markets and also positioning into stocks with good longer term potential. * The average total returns of the above Fund for the respective financial years are calculated based on NAV to NAV. Annual Total Returns VersatileEXTRA (Inception date: 28 Oct 2002) Benchmark: 50% FBM 100 and 50% Maybank 12months fixed deposit rate 2006 2007 2008 Annual Total Returns (%)** 2009 2010 2011 2012 2013 2014 2015 16.92 27.64 -31.88 30.77 6.61 3.90 4.54 12.96 -1.57 5.79 12.55 17.33 -20.21 22.53 11.98 2.65 6.39 7.30 -1.52 0.30 Source: Lipper ** Annual total returns of the above Fund represents annualized returns over the specified period assuming reinvestment of all distributions. Libra Invest Berhad Master Prospectus 87 Libra DividendEXTRA Fund Average Total Returns 1 year 7.88 DividendEXTRA (Inception date: 18 Mac 2005) Benchmark: FBM 100 -2.89 Average Total Returns (%)* 3 years 5 years 24.07 49.09 1.49 13.38 10 years 152.46 96.00 For the year 2015, the Fund posted gains of 7.88%, outperforming its FBM100 benchmark, which registered a negative return of 2.89% for the same year. The regional equities market experienced heightened volatility in 2015 caused by global growth concerns, plunging oil prices as well as huge foreign fund outflows. For 2016, we are maintaining a more cautious stance and would continue to hold high cash positions given the uncertainties in the market. Overall, the Fund continues to meet its objective of achieving relatively stable returns over a medium to long term. * The average total returns of the above Fund for the respective financial years are calculated based on NAV to NAV. Annual Total Returns Annual Total Returns (%)** 2010 2011 2012 2013 2006 2007 2008 2009 2014 2015 DividendEXTRA 18.80 (Inception date: 18 Mac 2005) Benchmark: FBM 100 21.83 26.86 -24.37 29.92 14.34 6.47 12.85 12.27 2.43 7.88 31.82 -39.33 45.71 21.76 1.94 9.60 11.39 -6.17 -2.89 Source: Lipper ** Annual total returns of the above Fund represents annualized returns over the specified period assuming reinvestment of all distributions. Libra Invest Berhad Master Prospectus 88 Libra TacticalEXTRA Fund Average Total Returns 1 year -7.00 TacticalEXTRA (Inception date: 18 Mac 2005) Benchmark: FBM 100 and 50% Maybank 12-months fixed deposit rate 0.31 Average Total Returns (%)* 3 years 5 years 8.53 21.24 5.95 15.78 10 years 133.87 68.88 For the year 2015, the Fund posted a negative return of 7.00%, underperforming its benchmark return of 0.31%. This was mainly due to the heightened volatility and sell down in the domestic market caused by plunging oil prices and huge foreign fund outflow. For 2016, we continue to take a more cautious stance and would maintain high cash positions given the uncertainties in the market. The Fund will continue to invest in domestic companies with strong balance sheet and resilient earnings. * The average total returns of the above Fund for the respective financial years are calculated based on NAV to NAV. Annual Total Returns Annual Total Returns (%)** 2010 2011 2012 2013 2006 2007 2008 2009 2014 2015 TacticalEXTRA 30.04 (Inception date: 18 Mac 2005) Benchmark: FBM 100 and 50% Maybank 13.17 12-months fixed deposit rate 37.47 -26.48 26.47 16.06 1.48 10.09 9.72 6.36 -7.00 18.00 -20.21 22.52 11.98 2.65 6.39 7.30 -1.55 0.31 Source: Lipper ** Annual total returns of the above Fund represents annualized returns over the specified period assuming reinvestment of all distributions. Libra Invest Berhad Master Prospectus 89 Libra Consumer and Leisure Asia Fund Average Total Returns 1 year LCLAF (Inception date: 18 July 2007) Benchmark: MSCI AC Asia Consumer Discretionary Index Average Total Returns (%)* 3 years 5 years 14.25 45.20 56.27 Since Inception 68.96 20.21 58.95 52.52 24.19 For the year 2015, the Fund posted a positive return of 14.25%, underperforming its benchmark return of 20.21% for the same year. Throughout the year, China consumer staples slightly outperformed the discretionary sector, with names in staples re-rating on lower energy and raw material prices. For 2016, we will continue to remain cautious and maintain the high cash position given the uncertainties of the market. Overall, the Fund continues to meet its objectives of maximizing capital returns over a medium to long term and has outperformed its benchmark since inception. * The average total returns of the above Fund for the respective financial years are calculated based on NAV to NAV. Annual Total Returns LCLAF (Inception date: 18 July 2007) Benchmark: MSCI AC Asia Consumer Discretionary Index Annual Total Returns (%)** 2011 2012 2013 2014 2007 2008 2009 2010 5.77 -36.90 44.43 15.56 -5.85 14.30 7.24 18.51 14.25 2015 -4.13 -45.67 48.43 15.28 -13.35 11.67 24.01 -0.45 20.21 Source: Lipper ** Annual total returns of the above Fund represents annualized returns over the specified period assuming reinvestment of all distributions. Libra Invest Berhad Master Prospectus 90 Libra Liquidity Fund Average Total Returns Average Total Returns (%)* 3 years 5 years Since Inception 10.66 15.86 19.41 1 year LLF (Inception date: 18 Feb 2009) Benchmark: Maybank Overnight Repo rate 3.63 2.02 5.84 9.53 11.86 For the period under review, the Fund was up 3.63%, outperforming its benchmark return of 2.02%. Returns for Libra Liquidity Fund were derived from its investments in short term Ringgit deposits placed with licensed financial institutions. In line with its objective, the Fund has provided consistent income with minimal risk while preserving capital and maintaining a high degree of liquidity. It aims to continue to provide conservative returns while maintaining fluidity of funds to meet its investors short term needs.. * The average total returns of the above Fund for the respective financial years are calculated based on NAV to NAV. Annual Total Returns Since Inception to 30 Sep 2009 LLF (Inception date: 18 Feb 2009) Benchmark: Maybank Overnight Repo rate Annual Total Returns (%)** 30 Sep 30 Sep 30 Sep 30 Sep 2010 2011 2012 2013 30 Sep 2014 30 Sep 2015 1.06 1.76 1.26 2.84 3.15 3.30 3.63 0.63 1.10 1.61 1.78 1.82 1.85 2.02 Source: Lipper ** Annual total returns of the above Fund represents annualized returns over the specified period assuming reinvestment of all distributions. Libra Invest Berhad Master Prospectus 91 Libra Resource Equity Fund Average Total Returns Average Total Returns (%)* 1 year 3 years Since Inception -20.05 -17.79 -16.92 LREF (Inception date: 18 March 2011) Benchmark: (Note 2) MSCI ACWI 22.68 43.31 46.29 During the period under review from 30th September 2014 to 30th September 2015, the Fund posted a negative return of 20% and underperformed the benchmark by 43%. Overall, resources stocks have performed poorly as the recovery on the global economy remains patchy and crude oil tumbled again after a strong rebound in 1HFY15. The renew talk of slower growth in China, timing of the fed rate hike and the concern over the oil supply glut are the main culprits of the weak oil price. Outlook for other commodities such as base metals remained negative, as soft Chinese macro data continued to disappoint the market. Currently the Fund is 67% invested in equity. The Fund is expected to increase its asset allocation in the near term as values of the fundamentally strong stocks emerged after the recent sell down. * The average total returns of the above Fund for the respective financial years are calculated based on NAV to NAV. Annual Total Returns Since Inception to 30 Sep 2011 LREF (Inception date: 18 March 2011) Benchmark: (Note 2) MSCI ACWI -10.88 -7.98 Annual Total Returns (%)** 30 Sep 30 Sep 30 Sep 2012 2013 2014 -4.57 7.74 7.76 30 Sep 2015 7.57 22.68 7.67 9.80 -20.05 Source: Lipper ** Annual total returns of the above Fund represents annualized returns over the specified period assuming reinvestment of all distributions. Note 2: Effective 16 August 2013, LREF adopted a new mandate and was classified as an equity fund, where the new benchmark is MSCI ACWI. The benchmark prior to the change was 15.0% MSCI ACWI15.0% J.P. Morgan Global Aggregate Bond Index + 17.5% S&P/ASX 200 Index + 17.5% S&P/TSX Composite Index + 17.5% AUD Deposit Rates, Australia 1-year fixed deposit rate + 17.5% CAD Deposit Rates, Canada 1-year fixed deposit rate. Libra Invest Berhad Master Prospectus 92 Libra SyariahEXTRA Fund Average Total Returns 1 year SyariahEXTRA (Inception date: 12 March 1996) Benchmark: (Note 3) 50% FBM EMAS Shariah Index and 50% Maybank 12-months GIA-i rate Average Total Returns (%)* 3 years 5 years 4.39 24.41 35.02 Since takeover 2 Jan 2003 103.13 3.12 11.14 22.97 109.78 For the year 2015, the Fund recorded gains of 4.39%, outperforming its benchmark return of 3.12%. This was in spite of a challenging domestic equities market caused by plunging oil prices and huge foreign fund outflow resulting in increased volatility. For 2016, we continue to maintain a cautious stance and would maintain high cash positions given the uncertain economic environment and financial markets. The Fund will continue to invest in undervalued domestic companies with strong balance sheet and resilient earnings. Overall, the Fund continues to meet its objective of achieving relatively stable returns over a medium to long term. * The average total returns of the above Fund for the respective financial years are calculated based on NAV to NAV. Annual Total Returns 2006 2007 2008 Annual Total Returns (%)** 2009 2010 2011 2012 2013 2014 2015 SyariahEXTRA 13.08 (Inception date: 12 March 1996) Benchmark: 50% FBM EMAS 14.68 Shariah Index and 50% Maybank 12months GIA-i rate 18.52 -33.33 20.45 10.40 6.14 2.25 14.60 4.00 4.39 23.39 -23.21 21.44 10.32 2.92 7.51 8.24 -0.42 3.12 Source: Lipper ** Annual total returns of the above Fund represents annualized returns over the specified period assuming reinvestment of all distributions. Note 3: Performance data prior to 2 January 2003 is not available to LIB. With the approval of the Fund‟s Unit Holders in a Unit Holders meeting held on 4 September 2002, the Fund has adopted a balanced approach towards Shariahcompliant equities and sukuk exposure since 3 October 2002. For the period from inception to 1 November 2002, SyariahEXTRA was benchmarked against the Kuala Lumpur Shariah Index (KLSI). Subsequently, the new benchmark for the Fund is the FTSE Bursa Malaysia EMAS Shariah Index as the KLSI, the previous benchmark, was deactivated on 31 October 2007 by Bursa Malaysia. Libra Invest Berhad Master Prospectus 93 Libra Amanah Saham Wanita Average Total Returns 1 year ASnita (Inception date: 4 May 1998) Benchmark: (Note 4) FBM EMAS Shariah Index Average Total Returns (%)* 3 years 5 years 0.25 23.37 23.68 Since takeover 2 May 2003 146.93 2.35 11.11 27.27 181.73 For the year 2015, the Fund posted gains of 0.25%, underperforming its FBM Emas Shariah benchmark return of 2.35%. It was a challenging year for domestic equities market caused by plunging oil prices and huge foreign fund outflow resulting in increased volatility. For 2016, we continue to maintain a cautious stance and would maintain high cash positions given the uncertain economic environment and financial markets. The Fund will continue to invest in undervalued domestic companies with strong balance sheet, resilient earnings and good longer term potential. * The average total returns of the above Fund for the respective financial years are calculated based on NAV to NAV. Annual Total Returns ASnita (Inception date: 4 May 1998) Benchmark: FBM EMAS Shariah Index 2006 2007 2008 Annual Total Returns (%)** 2009 2010 2011 2012 2013 2014 2015 15.10 29.20 -31.46 27.47 14.67 -2.38 2.69 17.59 4.66 0.25 26.52 45.57 -43.52 43.03 18.20 2.41 11.85 13.29 -4.17 2.35 Source: Lipper ** Annual total returns of the above Fund represents annualized returns over the specified period assuming reinvestment of all distributions. Note 4: Performance data prior to 2 May 2003 is not available to LIB. The Fund was first benchmarked against the Kuala Lumpur Shariah Index (KLSI) in 2003 when LIB took over the management of the Fund on 2 May 2003 from the previous management company, Metrowangsa Unit Trusts Berhad. Subsequently, the new benchmark for the Fund is the FTSE Bursa Malaysia Emas Shariah Index as the KLSI, the previous benchmark, was deactivated on 31 October 2007 by Bursa Malaysia. Libra Invest Berhad Master Prospectus 94 Libra ASnitaBOND Fund Average Total Returns Average Total Returns (%)* 3 years 5 years 13.33 27.54 1 year 5.10 ASnitaBOND (Inception date: 18 March 2005) Benchmark: Maybank 6-months GIA-i Tier I Rate 3.59 10.30 17.24 10 years 56.50 34.73 In 2015, the Fund registered strong performance of 5.10% return, significantly beating its benchmark 6-month Maybank General Investment Account (GIA) return of 3.59%. The performance was mainly attributed to massive capital appreciation from a careful selection of high grade sukuk investments, after thorough analysis on domestic and global economic environment, market trends and regional fund flows. The Fund derived its return from a selection of sukuk, Islamic money market instruments and Islamic deposit placements. The Fund will continue to give strong emphasis on sukuk issuers‟ credit strength focusing on cashflow consistency, stringent structure and experienced management teams. Careful selection of sukuk and Islamic money market instruments are carried out to allow the Fund to benefit from higher profit returns that commensurate with its risk profile. The Fund focuses on being conservative from the risk perspective while benefiting from investments in government and corporate sukuk that conform to Shariah requirements. The Fund achieved its investment objective of providing capital preservation with regular profit income over the short to medium term period. * The average total returns of the above Fund for the respective financial years are calculated based on NAV to NAV. Annual Total Returns 2006 2007 2008 Annual Total Returns (%)** 2009 2010 2011 2012 2013 2014 2015 ASnitaBOND 4.81 (Inception date: 18 March 2005) Benchmark: Maybank 6-months GIA-i 3.42 Tier I Rate 2.92 2.28 5.53 5.39 6.44 5.72 2.79 4.91 5.10 3.16 2.66 2.31 2.56 3.03 3.17 3.16 3.21 3.59 Source: Lipper ** Annual total returns of the above Fund represents annualized returns over the specified period assuming reinvestment of all distributions. Libra Invest Berhad Master Prospectus Libra Shariah Liquidity Fund Series 2 As at 10 February 2016, the fund has yet to commence investment. Average Total Returns LSLF Series 2 (Inception date: 4 February 2015) Benchmark: Maybank 1-month GIA-i Tier 1 Rate Average Total Returns (%) Since Inception - - Annual Total Returns Annual Total Returns (%) 2015 LSLF Series 2 (Inception date: 4 February 2015) Benchmark: Maybank 1-month GIA-i Tier 1 Rate - - 95 Libra Invest Berhad Master Prospectus 96 Distribution Record Libra IncomeEXTRA Fund Less Interest income Expenses Net distribution amount Financial Year ended 31 December 2015 2014 RM RM 5,180,732 (1,198,101) 3,982,631 2013 RM - Distribution Date Gross distribution per Unit (sen) Net distribution per Unit (sen) - 30 Dec 3.99 3.99 - NAV before distribution per Unit (RM) NAV after distribution per Unit (RM) - 0.5882 (29 Dec) 0.5444 (30 Dec) - There was no income distribution for the year 2013 and 2015. Distribution to Unit Holders for 2014 was sourced from interest income. Distributions were automatically reinvested into IncomeEXTRA with no sales charge. The effect of distribution made will reduce the NAV per Unit of the Fund right after the distribution, but the total wealth of the investors just before and after distribution will remain unchanged Libra EquityEXTRA Fund There was no income distribution for the year 2013, 2014 and 2015. Libra BondEXTRA Fund Interest income Realised gain on sale of investments Less Expenses Net distribution amount Distribution Date Gross distribution per Unit (sen) Net distribution per Unit (sen) NAV before distribution per Unit (RM) NAV after distribution per Unit (RM) Financial Year ended 31 December 2015 2014 RM RM 1,353,686 1,883,499 288,424 218,977 1,642,110 2,102,476 (315,208) (432,131) 1,326,902 1,670,345 2013 RM - 28 Dec 2.75 2.75 30 Dec 3.25 3.25 - 0.5408 (23 Dec) 0.5137 (28 Dec) 0.5463 (29 Dec) 0.5139 (30 Dec) - There was no income distribution for the year 2013. Distribution to Unit Holders for 2014 and 2015 was sourced from interest income and realised gain on sale of investments. Distributions were automatically reinvested into BondEXTRA with no sales charge. The effect of distribution made will reduce the NAV per Unit of the Fund right after the distribution, but the total wealth of the investors just before and after distribution will remain unchanged. Libra Invest Berhad Master Prospectus 97 Distribution Record Libra MoneyEXTRA Fund Interest income Realised gain on sale of investments Less Expenses Net distribution amount Distribution Date Gross distribution per Unit (sen) Net distribution per Unit (sen) NAV before distribution per Unit (RM) NAV after distribution per Unit (RM) Financial Year ended 31 December 2015 2014 RM RM 6,041,103 4,700,838 1,382,786 2,015,850 7,423,889 6,716,688 (1,110,357) (1,162,755) 6,313,532 5,553,933 2013 RM 4,453,740 1,963,128 6,416,868 (1,172,457) 5,244,411 26 Mar, 26 Jun 28 Sep & 28 Dec 0.42 (26 Mar) 0.52 (26 Jun) 0.53 (28 Sep) 0.53 (28 Dec) 0.42 (26 Mar) 0.52 (26 Jun) 0.53 (28 Sep) 0.53 (28 Dec) 26 Mar, 25 Jun 26 Sep & 26 Dec 0.36 (26 Mar) 0.36 (25 Jun) 0.42 (26 Sep) 0.42 (26 Dec) 0.36 (26 Mar) 0.36 (25 Jun) 0.42 (26 Sep) 0.42 (26 Dec) 26 Mar, 25 Jun 25 Sep & 26 Dec 0.36 (26 Mar) 0.36 (25 Jun) 0.36 (25 Sep) 0.36 (26 Dec) 0.36 (26 Mar) 0.36 (25 Jun) 0.36 (25 Sep) 0.36 (26 Dec) 0.5538 (25 Mar) 0.5554 (25 Jun) 0.5544 (25 Sep) 0.5546 (23 Dec) 0.5497 (26 Mar) 0.5502 (26 Jun) 0.5494 (28 Sep) 0.5496 (28 Dec) 0.5478 (25 Mar) 0.5485 (24 Jun) 0.5511 (25 Sep) 0.5519 (24 Dec) 0.5442 (26 Mar) 0.5449 (25 Jun) 0.5469 (26 Sep) 0.5479 (26 Dec) 0.5460 (25 Mar) 0.5475 (24 Jun) 0.5471 (24 Sep) 0.5478 (24 Dec) 0.5425 (26 Mar) 0.5435 (25 Jun) 0.5435 (25 Sep) 0.5443 (26 Dec) Distribution to Unit Holders for 2013, 2014 and 2015 was sourced from interest income and realised gain on sale of investments. Distributions were automatically reinvested into MoneyEXTRA with no sales charge. The effect of distribution made will reduce the NAV per Unit of the Fund right after the distribution, but the total wealth of the investors just before and after distribution will remain unchanged. Libra VersatileEXTRA Fund There was no income distribution for year 2013, 2014 and 2015. Libra Invest Berhad Master Prospectus 98 Distribution Record Libra DividendEXTRA Fund Interest income Realised gain on sale of investments Previous year‟s realised gain Less Expenses Net distribution amount Financial Year ended 31 December 2015 2014 2013 RM RM RM 68,931 89,467 553,783 654,533 1,092,362 353,543 1,715,076 1,097,543 (356,403) (326,420) 1,358,673 771,123 Distribution Date - 5 May 8.00 8.00 13 Mar 6.00 6.00 NAV before distribution per Unit (RM) - 0.8045(2 May) 0.7326(12 Mar) NAV after distribution per Unit (RM) - 0.7201(5 May) 0.6683(13 Mar) Gross distribution per Unit (sen) Net distribution per Unit (sen - There was no income distribution for the year 2015. Distribution to Unit Holders for 2013 and 2014 was sourced from interest income, realised gain on sale of investments and previous year‟s realised gain. Distributions were automatically reinvested into DividendEXTRA with no sales charge. The effect of distribution made will reduce the NAV per Unit of the Fund right after the distribution, but the total wealth of the investors just before and after distribution will remain unchanged. Libra TacticalEXTRA Fund There was no income distribution for year 2013, 2014 and 2015. Libra Consumer and Leisure Asia Fund There was no income distribution for year 2013, 2014 and 2015. Libra Invest Berhad Master Prospectus 99 Distribution Record Libra Liquidity Fund Interest income Previous year‟s realised gain Less Expenses Net distribution amount Distribution Date Gross distribution per Unit (sen) Net distribution per Unit (sen) NAV before distribution per Unit (RM) NAV after distribution per Unit (RM) Financial Year ended 30 September 2015 2014 RM RM 2,139,783 1,599,501 186,088 2,325,871 1,599,501 (109,647) (114,395) 2,216,224 1,485,106 2013 RM 2,317,363 2,317,363 (440,206) 1,877,157 26 Dec, 26 Mar, 26 Jun, 28 Sep 0.39 (26 Dec) 0.39 (26 Mar) 0.45 (26 Jun) 0.45 (28 Sep) 0.39 (26 Dec) 0.39 (26 Mar) 0.45 (25 Jun) 0.45 (25 Sep) 26 Dec, 26 Mar, 25 Jun, 26 Sep 0.19 (26 Dec) 0.38 (26 Mar) 0.38 (25 Jun) 0.39 (26 Sep) 0.19 (26 Dec) 0.38 (26 Mar) 0.38 (25 Jun) 0.39 (26 Sep) 26 Mar, 25 Jun, 25 Sep 0.19 (26 Mar) 0.19 (25 Jun) 0.19 (25 Sep) 0.19 (26 Mar) 0.19 (25 Jun) 0.19 (25 Sep) 0.5281 (24 Dec) 0.5289 (25 Mar) 0.5298 (25 Jun) 0.5300 (25 Sep) 0.5243 (26 Dec) 0.5250 (26 Mar) 0.5253 (26 Jun) 0.5257 (28 Sep) 0.5241 (24 Dec) 0.5264 (25 Mar) 0.5268 (24 Jun) 0.5275 (25 Sep) 0.5223 (26 Dec) 0.5226 (26 Mar) 0.5231 (25 Jun) 0.5236 (26 Sep) 0.5176 (25 Mar) 0.5197 (24 Jun) 0.5219 (24 Sep) 0.5157 (26 Mar) 0.5178 (25 Jun) 0.5200 (25 Sep) Distribution to Unit Holders for 2013, 2014 and 2015 was sourced from interest income and previous year‟s realised gain. Distribution was automatically reinvested into LLF with no sales charge. The effect of distribution made will reduce the NAV per Unit of the Fund right after the distribution, but the total wealth of the investors just before and after distribution will remain unchanged. Libra Resource Equity Fund There was no income distribution for the year 2013, 2014 and 2015. Libra SyariahEXTRA Fund There was no income distribution for the year 2013, 2014 and 2015. Libra Invest Berhad Master Prospectus 100 Distribution Record Libra ASnitaBOND Fund Income from Islamic money market Realised gain on sale of Shariahcompliant investments Previous year‟s realised gain Less Expenses Net distribution Distribution Date Gross distribution per Unit (sen) Net distribution per Unit (sen) NAV before distribution per Unit (RM) NAV after distribution per Unit (RM) Financial Year ended 31 December 2015 2014 RM RM 4,227,688 4,225,355 2013 RM 5,235,447 942,629 5,170,317 (986,440) 4,183,877 188,811 523,794 4,937,960 (983,946) 3,954,014 1,696,683 6,932,130 (1,283,093) 5,649,037 26 Mar 3.00 3.00 26 Mar 2.50 2.50 13 Mar 3.00 3.00 0.6124 (25 Mar) 0.5825 (26 Mar) 0.6016 (25 Mar) 0.5769 (26 Mar) 0.6176(12 Mar) 0.5876(13 Mar) Distribution to Unit Holders for 2013, 2014 and 2015 was sourced from profit income, realised gain on sale of Shariahcompliant investments and previous year‟s realised gain. Distribution was automatically reinvested into ASnitaBOND with no sales charge. The effect of distribution made will reduce the NAV per Unit of the Fund right after the distribution, but the total wealth of the investors just before and after distribution will remain unchanged. Libra Amanah Saham Wanita (ASnita) There was no income distribution for the year 2013, 2014 and 2015. Libra Shariah Liquidity Fund Series 2 There was no income distribution for the year 2015. Libra Invest Berhad Master Prospectus 101 Portfolio Turnover Ratio (PTR) The following table reflects the Portfolio Turnover Ratio (PTR) of the Funds for the three (3) most recent financial years. Fund Name Financial Year ended 31 December 2015 2014 2013 IncomeEXTRA (times) 0.08 (times) 1.49 (times) 2.76 EquityEXTRA 0.82 0.66 1.51 BondEXTRA 0.72 1.74 1.93 MoneyEXTRA 0.85 1.70 2.47 VersatileEXTRA 0.69 1.46 2.03 DividendEXTRA 0.68 1.70 2.83 TacticalEXTRA 0.65 0.99 2.65 LCLAF 1.32 1.39 2.53 SyariahEXTRA 0.54 0.66 1.16 ASnita 0.74 0.90 1.31 ASnitaBOND 1.39 1.50 1.57 IncomeEXTRA, BondEXTRA, MoneyEXTRA, VersatileEXTRA, TacticalEXTRA, SyariahEXTRA, ASnita and ASnita Bond have a lower PTR for the current year compared to the previous financial year due to a higher percentage decrease in the average transactional value compared to the percentage decrease in the average net asset value. EquityEXTRA has a higher PTR compared to the previous financial year due to an increase in the average transactional value and a decrease in the average net asset value. DividendEXTRA has a lower PTR for the current year compared to the previous financial year due to a decrease in the average transactional value and an increase in the average net asset value. LCLAF has a lower PTR for the current year compared to the previous financial year due to a lower percentage increase in the average transactional value compared to the percentage increase in the average net asset value. Fund Name LLF LREF LSLF Series 2 Financial Year ended 30 September 2015 2014 2013 (times) (times) (times) - - - 0.93 0.90 2.02 - - - The LLF does not have PTR because all investments are in short term cash deposits and LREF have a higher PTR for the current year compare to the previous financial year due to a lower percentage decrease in average transactional value compared to the percentage decrease in the average net asset value. The LSLF Series 2 has yet to commence investment as at 10 February 2016. Libra Invest Berhad Master Prospectus Asset Allocation 2015 (%) As at 31 December 2014 (%) 2013 (%) IncomeEXTRA* Unquoted fixed income securities Quoted equities Cash & others 32.77 55.06 12.17 31.62 57.36 11.02 37.44 57.65 4.91 EquityEXTRA Quoted equities & equity-related securities Unquoted fixed income securities Cash & others 73.54 26.46 73.23 26.77 72.67 1.31 26.02 BondEXTRA Unquoted fixed income securities Quoted securities Cash & others 95.71 4.29 78.22 21.78 92.43 7.57 MoneyEXTRA Unquoted bonds Unquoted commercial papers Cash & others 29.00 29.35 41.65 25.94 31.29 42.77 28.52 55.58 15.90 VersatileEXTRA Quoted equities & equity-related securities Unquoted fixed income securities Cash & others 44.65 55.35 42.33 57.67 61.22 12.41 26.37 DividendEXTRA Quoted equities & equity-related securities Cash & others 75.30 24.70 69.65 30.35 75.28 24.72 TacticalEXTRA Quoted equities & equity-related securities Unquoted fixed income securities Cash & others 70.15 29.85 62.18 37.82 65.48 35.52 LCLAF Quoted equities & equity-related securities Unquoted fixed income securities Cash & others 73.34 11.99 14.67 65.72 10.78 23.50 79.71 12.08 8.21 SyariahEXTRA Quoted Shariah-compliant equities & equity-related securities Unquoted sukuk Cash & Others 40.34 59.66 32.72 67.28 55.17 11.68 33.15 ASnita Quoted Shariah-compliant equities & equity-related securities Cash & others 70.16 29.84 52.95 47.05 69.94 30.06 * Effective 16 August 2011, the Fund has adopted a new mandate and is now classified as a balanced fund. 102 Libra Invest Berhad Master Prospectus Asset Allocation 2015 (%) As at 31 December 2014 (%) 2013 (%) 92.60 7.40 86.67 13.33 0.85 73.07 26.08 2015 (%) As at 30 September 2014 (%) 2013 (%) LLF Liquid assets including short term deposits 100.00 100.00 100.00 LREF Quoted equities & equity-related securities Cash & others 66.58 33.42 80.80 19.20 84.63 15.37 - - - ASnitaBOND Islamic Commercial paper Unquoted sukuk Cash & Others LSLF Series 2 Short term Islamic deposits Past performance of the Funds is not an indication of future performance. 103 Libra Invest Berhad Master Prospectus 104 10. HISTORICAL FINANCIAL HIGHLIGHTS OF THE FUNDS Audited Financial Statement of the Funds Statement of Comprehensive Income Libra IncomeEXTRA Fund Total investment income Less total expenditure Net income/ (loss) before tax Add/ (Less) taxation Net income/ (loss) after tax Financial Year ended 31 December 2015 2014 2013 (RM) (RM) (RM) 5,873,704 13,422,925 1,230,752 (923,677) (1,198,101) (1,584,608) 4,950,027 12,224,824 (353,856) 15,714 (98,595) 4,950,027 12,240,538 (452,451) Libra EquityEXTRA Fund Total investment (loss)/ income Less total expenditure Net (loss)/ income before tax Add/ (Less) taxation Net (loss)/ income after tax Financial Year ended 31 December 2015 2014 (RM) (RM) (1,000,481) 3,062,813 (798,383) (830,282) (1,798,864) 2,232,531 311 (1,798,864) 2,232,842 2013 (RM) 4,959,116 (664,316) 4,294,800 (14,754) 4,280,046 Libra BondEXTRA Fund Total investment income Less total expenditure Net income before tax Less taxation Net income after tax Financial Year ended 31 December 2015 2014 2013 (RM) (RM) (RM) 1,999,772 2,638,305 1,214,699 (315,208) (432,131) (788,365) 1,684,564 2,206,174 426,334 1,684,564 2,206,174 426,334 Libra MoneyEXTRA Fund Total investment income Less total expenditure Net income before tax Less taxation Net income after tax Financial Year ended 31 December 2015 2014 2013 (RM) (RM) (RM) 8,199,497 8,232,495 7,530,752 (1,110,357) (1,162,755) (1,172,457) 7,089,140 7,069,740 6,358,295 7,089,140 7,069,740 6,358,295 Libra Invest Berhad Master Prospectus 105 Statement of Comprehensive Income Libra VersatileEXTRA Fund Total investment income Less total expenditure Net income before tax Add/ (Less) taxation Net income after tax Financial Year Ended 31 December 2015 2014 2013 (RM) (RM) (RM) 111,849 94,162 610,530 (53,952) (69,929) (112,915) 57,897 24,233 497,615 174 (310) 57,897 24,407 497,305 Libra DividendEXTRA Fund Total investment income Less total expenditure Net income/ (loss) before tax Add/ (Less) taxation Net income/ (loss) after tax Financial Year ended 31 December 2015 2014 (RM) (RM) 1,557,863 350,341 (360,364) (356,403) 1,197,499 (6,062) 5,546 1,197,499 (516) 2013 (RM) 1,482,994 (326,420) 1,156,574 (12,060) 1,144,514 Financial Year ended 31 December 2015 2014 (RM) (RM) (1,634,639) 3,114,511 (767,377) (855,371) (2,402,016) 2,259,140 (2,402,016) 2,259,140 2013 (RM) 3,785,012 (937,067) 2,847,945 58 2,848,003 Libra TacticalEXTRA Fund Total investment (loss)/ income Less total expenditure Net (loss)/ income before tax Taxation Net (loss)/ income after tax Libra Consumer and Leisure Asia Fund Total investment income Less total expenditure Net income before tax Less taxation Net income after tax Financial Year ended 31 December 2015 2014 2013 (RM) (RM) (RM) 7,971,991 8,299,219 3,597,669 (1,245,477) (983,904) (1,160,581) 6,726,514 7,315,315 2,437,088 6,726,514 7,315,315 2,437,088 Libra Liquidity Fund Total investment income Less total expenditure Net income before tax Less taxation Net income after tax Financial Year ended 30 September 2015 2014 2013 (RM) (RM) (RM) 2,139,783 2,144,579 7,822,353 (109,647) (114,395) (440,206) 2,030,136 2,030,184 7,382,147 2,030,136 2,030,184 7,382,147 Libra Invest Berhad Master Prospectus 106 Statement of Comprehensive Income Libra Resource Equity Fund Total investment (loss)/ income Less total expenditure Net (loss)/ income before tax Less taxation Net (loss)/ income after tax Financial Year ended 30 September 2015 2014 (RM) (RM) (2,080,128) 713,288 (238,476) (264,056) (2,318,604) 449,232 (2,318,604) 449,232 2013 (RM) (241,883) (254,084) (495,967) (194) (496,161) Financial Year ended 31 December 2015 2014 (RM) (RM) 1,352,787 1,279,001 (445,559) (428,715) 907,228 850,286 907,228 850,286 2013 (RM) 3,189,852 (428,730) 2,761,122 (37) 2,761,085 Libra SyariahEXTRA Fund Total Shariah-compliant investment income Less total expenditure Net income before tax Less taxation Net income after tax Libra Amanah Saham Wanita Total Shariah-compliant investment income Less total expenditure Net income before tax Less taxation Net income after tax Financial Year ended 31 December 2015 2014 2013 (RM) (RM) (RM) 1,721,464 4,447,536 10,200,721 (1,446,399) (1,512,380) (1,369,938) 275,065 2,935,156 8,830,783 (15,526) 275,065 2,935,156 8,815,257 Libra ASnitaBOND Fund Total Shariah-compliant investment income Less total expenditure Net income before tax Less taxation Net income after tax Financial Year ended 31 December 2015 2014 2013 (RM) (RM) (RM) 5,247,419 5,048,009 4,675,295 (986,440) (983,946) (1,283,093) 4,260,979 4,064,063 3,392,202 4,260,979 4,064,063 3,392,202 Libra Shariah Liquidity Fund Series 2 Total Shariah-compliant investment income Less total expenditure Net income/ (loss) before tax Less taxation Net income/ (loss) after tax Financial Year ended 30 September 2015 (RM) - Libra Invest Berhad Master Prospectus 107 Statement of Financial Position Libra IncomeEXTRA Fund Total investments Other assets Total assets As at 31 December 2015 2014 (RM) (RM) 39,217,302 52,128,879 7,453,111 8,436,971 46,670,413 60,565,850 2013 (RM) 70,255,532 14,806,054 85,061,586 Total liabilities excluding NAV attributable to Unit Holders NAV attributable to Unit Holders 1,011,445 45,658,968 1,976,360 58,589,490 11,178,319 73,883,267 (13,856,941) 58,151,627 1,364,282 45,658,968 4,023,608 52,741,279 1,824,603 58,589,490 27,575,292 49,767,940 (3,459,965) 73,883,267 NAV attributable to Unit Holders is represented by: Unit Holders‟ contribution Realised reserves Unrealised reserves/ (deficits) Libra EquityEXTRA Fund Total investments Other assets Total assets As at 31 December 2015 2014 (RM) (RM) 23,163,598 29,587,730 9,427,204 10,962,123 32,590,802 40,549,853 2013 (RM) 27,673,833 10,141,715 37,815,548 Total liabilities excluding NAV attributable to Unit Holders NAV attributable to Unit Holders 1,092,493 31,498,309 143,409 40,406,444 408,195 37,407,353 19,942,376 9,669,831 1,886,102 31,498,309 27,051,647 10,939,175 2,415,622 40,406,444 26,285,398 8,636,095 2,485,860 37,407,353 NAV attributable to Unit Holders is represented by: Unit Holders‟ contribution Realised reserves Unrealised reserves Libra BondEXTRA Fund Total investments Other assets Total assets As at 31 December 2015 2014 (RM) (RM) 24,811,705 21,995,079 1,997,146 6,787,550 26,808,851 28,782,629 2013 (RM) 48,435,080 7,741,489 56,176,569 Total liabilities excluding NAV attributable to Unit Holders NAV attributable to Unit Holders 550,125 26,258,726 663,625 28,119,004 3,773,025 52,403,544 13,887,631 12,638,506 (267,411) 26,258,726 16,105,571 12,136,521 (123,088) 28,119,004 40,925,940 15,194,488 (3,716,884) 52,403,544 NAV attributable to Unit Holders is represented by: Unit Holders‟ contribution Realised reserves Unrealised deficits Libra Invest Berhad Master Prospectus 108 Statement of Financial Position Libra MoneyEXTRA Fund Total investments Other assets Total assets As at 31 December 2015 2014 2013 (RM) (RM) (RM) 90,731,007 100,026,571 162,065,358 64,975,091 74,870,255 30,741,286 155,706,098 174,896,826 192,806,644 Total liabilities excluding NAV attributable to Unit Holders NAV attributable to Unit Holders 207,725 155,498,373 103,798 174,793,028 97,954 192,708,690 145,145,315 10,235,727 117,331 155,498,373 165,215,578 9,038,513 538,937 174,793,028 184,647,047 7,987,925 73,718 192,708,690 NAV attributable to Unit Holders is represented by: Unit Holders‟ contribution Realised reserves Unrealised reserves Libra VersatileEXTRA Fund Total investments Other assets Total assets As at 31 December 2015 2014 (RM) (RM) 466,236 424,980 589,113 589,962 1,055,349 1,014,942 2013 (RM) 2,042,400 748,113 2,790,513 Total liabilities excluding NAV attributable to Unit Holders NAV attributable to Unit Holders 11,076 1,044,273 10,930 1,004,012 16,976 2,773,537 (968,095) 2,017,676 (5,308) 1,044,273 (950,459) 1,989,695 (35,224) 1,004,012 843,473 1,709,304 220,760 2,773,537 NAV attributable to Unit Holders is represented by: Unit Holders‟ contribution Realised reserves Unrealised (deficits)/ reserves Libra DividendEXTRA Fund Total investments Other assets Total assets As at 31 December 2015 2014 (RM) (RM) 12,234,757 10,525,117 4,076,173 4,616,280 16,310,930 15,141,397 2013 (RM) 9,132,333 3,021,772 12,154,105 Total liabilities excluding NAV attributable to Unit Holders NAV attributable to Unit Holders 62,356 16,248,574 29,009 15,112,388 22,933 12,131,172 13,395,767 2,188,177 664,630 16,248,574 13,457,080 2,262,203 (606,895) 15,112,388 9,116,675 2,563,414 451,083 12,131,172 NAV attributable to Unit Holders is represented by: Unit Holders‟ contribution Realised reserves Unrealised reserves/ (deficits) Libra Invest Berhad Master Prospectus 109 Statement of Financial Position Libra TacticalEXTRA Fund Total investments Other assets Total assets As at 31 December 2015 2014 (RM) (RM) 24,398,412 26,760,398 11,924,221 16,353,297 36,322,633 43,113,695 2013 (RM) 25,396,116 12,868,528 38,264,644 Total liabilities excluding NAV attributable to Unit Holders NAV attributable to Unit Holders 1,543,530 34,779,103 74,340 43,039,355 61,951 38,202,693 15,452,590 18,147,510 1,179,003 34,779,103 21,310,826 22,326,678 (598,149) 43,039,355 18,733,304 18,156,272 1,313,177 38,202,693 NAV attributable to Unit Holders is represented by: Unit Holders‟ contribution Realised reserves Unrealised reserves/ (deficits) Libra Consumer and Leisure Asia Fund Total investments Other assets Total assets As at 31 December 2015 2014 (RM) (RM) 49,693,287 35,452,122 8,645,897 12,011,031 58,339,184 47,463,153 2013 (RM) 37,425,347 3,893,931 41,319,278 Total liabilities excluding NAV attributable to Unit Holders NAV attributable to Unit Holders 104,843 58,234,341 1,122,839 46,340,314 549,552 40,769,726 40,992,097 9,758,927 7,483,317 58,234,341 35,824,584 6,426,753 4,088,977 46,340,314 37,569,311 1,792,003 1,408,412 40,769,726 NAV attributable to Unit Holders is represented by: Unit Holders‟ contribution Realised reserves Unrealised reserves Libra Liquidity Fund Total assets As at 30 September 2015 2014 2013 (RM) (RM) (RM) 154,957,057 43,209,090 182,979,660 Total liabilities excluding NAV attributable to Unit Holders NAV attributable to Unit Holders 49,751 154,907,306 13,223 43,195,867 212,478 182,767,182 148,763,426 6,143,880 154,907,306 36,865,899 6,329,968 43,195,867 176,982,292 5,784,890 182,767,182 NAV attributable to Unit Holders is represented by: Unit Holders‟ contribution Realised reserves Libra Invest Berhad Master Prospectus 110 Statement of Financial Position Libra Resource Equity Fund Total investments Other assets Total assets As at 30 September 2015 2014 (RM) (RM) 5,156,168 9,552,543 3,002,579 2,350,435 8,158,747 11,902,978 2013 (RM) 6,604,461 1,219,004 7,823,465 Total liabilities excluding NAV attributable to Unit Holders NAV attributable to Unit Holders 414,360 7,744,387 80,815 11,822,163 20,180 7,803,285 9,981,710 (1,883,248) (354,075) 7,744,387 11,740,882 125,565 (44,284) 11,822,163 8,171,236 (418,982) 51,031 7,803,285 NAV attributable to Unit Holders is represented by: Unit Holders‟ contribution Realised (deficits)/ reserves Unrealised (deficits)/ reserves Libra SyariahEXTRA Fund As at 31 December 2015 2014 (RM) (RM) 2013 (RM) Total investments – Quoted Shariah-compliant securities & Unquoted sukuk Other assets Total assets 8,372,406 12,440,535 20,812,941 6,901,036 14,231,600 21,132,636 14,078,283 7,119,465 21,197,748 Total liabilities excluding NAV attributable to Unit Holders NAV attributable to Unit Holders 57,853 20,755,088 38,283 21,094,353 138,082 21,059,666 11,542,353 9,315,006 (102,271) 20,755,088 12,788,846 7,612,014 693,493 21,094,353 13,604,445 6,162,584 1,292,637 21,059,666 NAV attributable to Unit Holders is represented by: Unit Holders‟ contribution Realised reserves Unrealised (deficits)/ reserves Libra ASnitaBOND Fund Total investments – Unquoted sukuk Other assets Total assets As at 31 December 2015 2014 2013 (RM) (RM) (RM) 80,760,424 74,023,637 86,085,097 6,565,147 11,463,845 31,022,517 87,325,571 85,487,482 117,107,614 Total liabilities excluding NAV attributable to Unit Holders NAV attributable to Unit Holders 87,274 87,238,297 79,139 85,408,343 656,071 116,451,543 81,750,013 5,488,260 24 87,238,297 79,997,161 4,704,045 707,137 85,408,343 111,150,410 5,462,567 (161,434) 116,451,543 NAV attributable to Unit Holders is represented by: Unit Holders‟ contribution Realised reserves Unrealised reserves/ (deficits) Libra Invest Berhad Master Prospectus 111 Statement of Financial Position Libra Amanah Saham Wanita As at 31 December 2015 2014 (RM) (RM) 2013 (RM) Total investments – Quoted and Unquoted Shariah-compliant investments Other assets Total assets 40,458,323 17,333,563 57,791,886 33,833,123 30,449,670 64,282,793 42,444,288 19,234,185 61,678,473 Total liabilities excluding NAV attributable to Unit Holders NAV attributable to Unit Holders 113,796 57,678,090 378,033 63,904,760 990,423 60,688,050 5,474,728 52,322,190 (118,828) 57,678,090 11,976,463 49,413,180 2,515,117 63,904,760 11,694,909 45,189,990 3,803,151 60,688,050 NAV attributable to Unit Holders is represented by: Unit Holders‟ contribution Realised reserves Unrealised (deficits)/ reserves Libra Shariah Liquidity Fund Series 2 Total investment Other assets Total assets Total liabilities excluding NAV attributable to Unit Holders NAV attributable to Unit Holders NAV attributable to Unit Holders is represented by: Unit Holders‟ contribution Realised reserves Unrealised reserves/ (deficits) As at 30 September 2015 (RM) - - Note: The Shariah Adviser confirms that the investment portfolio of Libra ASnitaBOND Fund, Libra Amanah Saham Wanita and Libra SyariahEXTRA Fund comprise securities which have been classified as Shariah-compliant by the SACSC. As for the securities which are not certified by the SACSC, they have reviewed the said securities and opined that these securities are designated as Shariah-compliant. Libra Invest Berhad Master Prospectus Total Annual Expenses Incurred by the Funds in the Preceding Financial Year Financial year ended 31 December 2015. Fund Name Management Fee IncomeEXTRA (RM) 667,988 (%) * 1.15 (RM) 46,468 (%) * 0.08 (RM) 209,221 (%) * 0.43 Total Annual Expenses (RM) (%) * 923,677 1.66 EquityEXTRA 620,957 1.65 37,634 0.10 139,792 0.46 798,383 2.21 BondEXTRA 280,420 1.00 19,629 0.07 15,159 0.10 315,208 1.17 MoneyEXTRA Trustee Fee Fund Expenses 962,871 0.50 134,802 0.07 12,684 0.03 1,110,357 0.60 VersatileEXTRA 16,404 1.50 766 0.07 36,782 3.59 53,952 5.16 DividendEXTRA 257,597 1.50 12,021 0.07 90,746 0.62 360,364 2.19 TacticalEXTRA 612,699 1.50 28,592 0.07 126,086 0.39 767,377 1.96 LCLAF 970,364 1.70 45,664 0.08 229,449 0.50 1,245,477 2.28 SyariahEXTRA 331,167 1.50 13,247 0.06 101,145 0.55 445,559 2.11 ASnita 959,826 1.50 63,988 0.10 422,585 0.76 1,446,399 2.36 ASnitaBOND 911,706 1.00 63,819 0.07 10,915 0.06 986,440 1.13 Financial year ended 30 September 2015 Fund Name LLF LREF LSLF Series 2 (RM) 78,983 (%) * 0.14 (RM) 11,283 (%) * 0.02 (RM) 19,381 (%) * 0.03 Total Annual Expenses (RM) (%) * 109,647 0.19 164,244 1.75 7,508 0.08 66,724 0.71 238,476 Management Fee - - Trustee Fee - Fund Expenses - * reflected as a percentage of average NAV for the financial year/period. - - - 2.54 - 112 Libra Invest Berhad Master Prospectus 113 Management Expense Ratio (MER) The following table reflects the management expense ratio (MER) of the Funds for the three (3) most recent financial years. Fund Name Financial Year ended 31 December 2015 2014 2013 (%) (%) (%) IncomeEXTRA 1.66 1.53 2.00 EquityEXTRA 2.21 2.06 2.44 BondEXTRA 1.17 1.11 1.14 MoneyEXTRA 0.60 0.58 0.58 VersatileEXTRA 5.16 3.16 2.69 DividendEXTRA 2.19 2.39 3.07 TacticalEXTRA 1.96 1.99 2.50 LCLAF 2.28 2.25 2.87 SyariahEXTRA 2.11 1.98 2.10 ASnita 2.36 2.30 2.47 ASnitaBOND 1.13 1.09 1.08 IncomeEXTRA, EquityEXTRA, BondEXTRA, VersatileEXTRA and Asnita have a higher MER for the current year compared to the previous financial year due to a lower percentage decrease in the expenses compared to the percentage decrease in the average net asset value. DividendEXTRA has a lower MER for the current year compared to the previous financial year due to a lower percentage increase in the expenses compared to the percentage increase in the average net asset value. TacticalEXTRA has a lower MER for the current year compared to the previous financial year due to a higher percentage decrease in the expenses compared to the percentage decrease in the average net asset value. LCLAF has a higher MER for the current year compared to the previous financial year due to a higher percentage increase in the expenses compared to the percentage increase in the average net asset value. MoneyEXTRA has a fairly consistent MER as compared to previous financial year. SyariahEXTRA and AsnitaBond have a higher MER for the current year compared to the previous financial year due to an increase in the expenses and a decrease in the average net asset value. Management Expense Ratio (MER) Fund Name Financial Year ended 30 September 2015 2014 2013 LLF (%) 0.19 (%) 0.18 (%) 0.18 LREF 2.54 2.51 2.15 - - - LSLF Series 2 LLF has a fairly consistent MER as compared to previous financial year. LREF has a higher MER for the current year compared to previous financial year due to a lower percentage decrease in the expenses compared to the percentage decrease in the average net asset value. LSLF Series 2 has yet to commence investment as at 10 February 2016. Past performance of the Funds is not an indication of future performance. The audited financial statements of the Funds are disclosed in the Funds’ annual report. The Funds’ annual reports are available upon request. Libra Invest Berhad Master Prospectus 114 11. FEES, CHARGES AND EXPENSES OF THE FUNDS Charges Directly Incurred (a) Sales Charge This is the maximum sales charge permitted by each distribution channels. Fund Name Non-EPF Member’s Investment Scheme EPF Member’s Investment Scheme % of the NAV per Unit IncomeEXTRA 5* Not applicable EquityEXTRA 5* 3 BondEXTRA 5* 3 MoneyEXTRA Nil Nil VersatileEXTRA 5* Not applicable DividendEXTRA 5* 3 TacticalEXTRA 5* 3 LCLAF 5* Not applicable LLF Nil Not applicable LREF 5* Not applicable SyariahEXTRA 5* 3 ASnita 5* Not applicable ASnitaBOND 5* 3 LSLF Series 2 Nil Not applicable *The sales charge is negotiable. The sales charge payable for investments in a Fund is equivalent to the specified percentage of the NAV per Unit of the respective Funds. There is no sales charge imposed for distribution of income reinvested for all the Funds. Please refer to page 119 for an illustration on the calculation of the sales charge. EPF Member’s Investment Schemes As at 10 February 2016, EPF members may invest in the following EPF-approved Funds: ASnitaBOND, BondEXTRA, DividendEXTRA, EquityEXTRA, MoneyEXTRA, SyariahEXTRA and TacticalEXTRA. The list may be revised by EPF from time to time. The above is only applicable to investors who purchase Units via the EPF member‟s investment scheme and is subject to changes by EPF from time to time. Please refer to the Manager for the latest list of Funds approved by EPF for investment. (b) Repurchase Charge Nil (c) Dilution Fee/Transaction Cost Nil Libra Invest Berhad Master Prospectus (d) Transfer Fee Nil (e) Other Charges 115 There are no other charges (except charges levied by banks on remittance of money) payable directly by investors when purchasing or liquidating units. (f) Switching Fee No switching fee is imposed on all switches between equity Funds and non-equity Funds under the oneINVEST strategy. This is to facilitate profit taking (if any), i.e. from holding in equity Funds and reinvestment in fixed income Funds. Switching between the Funds will be at NAV per Unit to NAV per Unit. All switches are subject to availability of Units. Switching from Shariah-compliant Funds to a conventional Fund is not encouraged especially for Muslim Unit Holders. Note: With effect from 1 April 2015, a Unit Holder or the Fund (as the case may be) shall pay a GST at the rate of 6% which may be imposed by the relevant authority in respect of any fees, charges or expenses payable by virtue of the Deed for the respective Fund. Investors should be aware that such fees, charges and expenses referred to or quoted in this Master Prospectus and the Deed are referred to or quoted as being exclusive of GST. Fees Indirectly Incurred (a) Annual Management Fee The Management Company is entitled to an annual management fee based on the NAV of the Fund, which is accrued daily. The annual management fee for the following Funds are as follows: Fund Name Annual Management Fee IncomeEXTRA 1.15% p.a. of the Fund‟s NAV EquityEXTRA 1.65% p.a. of the Fund‟s NAV BondEXTRA 1.00% p.a. of the Fund‟s NAV MoneyEXTRA 0.50% p.a. of the Fund‟s NAV VersatileEXTRA 1.50% p.a. of the Fund‟s NAV DividendEXTRA 1.50% p.a. of the Fund‟s NAV TacticalEXTRA 1.50% p.a. of the Fund‟s NAV LCLAF 1.70% p.a. of the Fund‟s NAV LLF 0.30% p.a. of the Fund‟s NAV LREF 1.75% p.a. of the Fund‟s NAV SyariahEXTRA 1.50% p.a. of the Fund‟s NAV ASnita 1.50% p.a. of the Fund‟s NAV ASnitaBOND 1.15% p.a. of the Fund‟s NAV LSLF Series 2 0.30% p.a. of the Fund‟s NAV Please refer to page 118 for an illustration on the calculation of the management fee. Libra Invest Berhad Master Prospectus (b) 116 Annual Trustee Fee The annual trustee fee is based on the NAV of the Fund accrued daily and paid monthly. The rates are: Fund Name Annual Trustee Fee IncomeEXTRA 0.08% p.a. of the Fund‟s NAV, subject to a minimum of RM30,000 p.a. EquityEXTRA 0.10% p.a. of the Fund‟s NAV, subject to a minimum of RM35,000 p.a. BondEXTRA 0.07% p.a. of the Fund‟s NAV, subject to a minimum of RM18,000 p.a. MoneyEXTRA 0.07% p.a. of the Fund‟s NAV, subject to a minimum of RM18,000 p.a. VersatileEXTRA 0.07% p.a. of the Fund‟s NAV DividendEXTRA 0.07% p.a. of the Fund‟s NAV (excluding foreign custodian fee and charges) TacticalEXTRA 0.07% p.a. of the Fund‟s NAV, subject to a minimum of RM18,000 p.a. LCLAF 0.08% p.a. of the Fund‟s NAV LLF 0.02% p.a. of the Fund‟s NAV LREF 0.08% p.a. of the Fund‟s NAV, subject to a minimum of RM18,000 per annum (excluding foreign custodian fees and charges) SyariahEXTRA 0.06% p.a. of the Fund‟s NAV Asnita 0.10% p.a. of the Fund‟s NAV, subject to a minimum of RM50,000 p.a. ASnitaBOND 0.07% p.a. of the Fund‟s NAV LSLF Series 2 0.02% p.a. of the Fund‟s NAV Please refer to page 118 for an illustration on the calculation of the trustee fee. Fees or Charges of the Advisor to the Management Company The advisory fee payable to the Shariah Adviser will be fully borne by the Management Company. Custodian Fee The custodian fee payable is as follows: IncomeEXTRA Safekeeping fee is up to 0.06% of the NAV of the foreign portfolio according to the country which the Fund invests in. Transaction fee is up to USD55 per transaction according to the country which the Fund invests in. The custodian fee will be paid to the custodian, Standard Chartered Bank (Malaysia) Berhad for investments which are made overseas. VersatileEXTRA Safekeeping fee is up to 0.035% of the NAV of the foreign portfolio according to the country which the Fund invests in. Transaction fee is up to USD30 per transaction according to the country which the Fund invests in. The custodian fee will be paid to the custodian, Standard Chartered Bank (Malaysia) Berhad for investments which are made overseas. Libra Invest Berhad Master Prospectus 117 DividendEXTRA, LCLAF and LREF The custodian fee payable is subject to an agreement with the custodian and will depend on the number of transaction carried out and the place at which such transaction are effected. The custodian fee will be paid to the custodian, for investments which are made overseas. Rebate & Soft Commissions The Manager will retain soft commissions received from stockbrokers, provided they are of demonstrable benefit to the Unit Holders. Such soft commissions may take the form of goods and services such as data and quotation services, computer software incidental to the management of the Fund and investment related publications. Rebates, if any, will be directed to the account of the Fund. Other Expenses to Be Paid Out Of the Fund Apart from the fees payable to the Management Company and the Trustee as described above, only fees and expenses that are directly related to the operations of the Fund may be paid out of the Fund. These include the following: auditor and other professional fees; tax and duties imposed by the authorities; sub-custodian fee or charges (where the custodial function is delegated by the Trustee); commissions paid to brokers in effecting the investment transactions of the Fund; cost of convening meetings of Unit Holders other than those incurred by or for the benefit of the Management Company or Trustee; cost for modification of Deed save where such modification is for the benefit of the Management Company and/or the Trustee; cost of production and distribution of reports of the Fund, tax vouchers, dividend warrants and notices to Unit Holders; and other fees/expenses permitted in the Deed. Where the Management Company or the Trustee have incurred such expenses on behalf of the Fund, it shall be duly reimbursed by the Fund. Other Fees Payable Indirectly by an Investor Nil Note: The above fees and charges are exclusive of GST payable by a Unit Holder or the Fund (as the case may be). There are fees and charges involved and investors are advised to consider them before investing in the Funds. Libra Invest Berhad Master Prospectus 118 12. TRANSACTION INFORMATION Pricing Computation of NAV The NAV of the Fund is calculated at the end of each Business Day and is defined as the total value of the Fund‟s investment less any liabilities at that valuation point. Where applicable, investment income, interest payable, fees and other liabilities (including management fee) will be accrued daily in arriving at the NAV of the Fund. NAV per Unit = NAV of the Fund / Number of Units in circulation Illustration (based on TacticalEXTRA) Less: Less: NAV before deducting management fee and trustee fee for the day Management fee for the day (1.50% per annum) 20,000,000 x 1.50% / 365 Trustee fee for the day (0.07% per annum) 20,000,000 x 0.07% / 365 NAV Units in circulation NAV per Unit (a) / (b) NAV per Unit (rounded up to four decimal places) (a) (b) RM RM RM 20,000,000.00 821.92 38.36 RM 19,999,139.72 40,000,000.00 0.499978493 0.5000 RM RM Illustration (based on TacticalEXTRA) NAV before deducting management fee and trustee fee for the day RM 20,000,000.00 Less: Management fee for the day (1.50% per annum) 20,000,000 x 1.50% / 365 RM 821.92 Less: Trustee fee for the day (0.07% per annum) 20,000,000 x 0.07% / 365 RM 38.36 RM 19,999,139.72 NAV (a) Units in circulation (b) NAV per Unit (a) / (b) 40,000,000.00 RM 0.499978493 NAV per Unit (rounded up to four decimal places) RM 0.5000 Note:The charges set out above are exclusive of GST payable by a Unit Holder. Refer to details on page 28. Pricing Policy Single Pricing Selling of Units by the Management Company (i.e. when you purchase Units) and repurchase of Units by the Management Company (i.e. when you liquidate your Units) will be carried out at NAV per Unit (the actual value of a Unit). The sales charge or repurchase charge (if any) would be computed separately based on your investment or liquidation amount. Forward Pricing The single price for investment or liquidation of Units shall be the daily NAV per Unit at the next valuation point after the Management Company receives the investment or liquidation application (i.e. forward prices are used). Incorrect Pricing Policy Incorrect pricing refers to pricing discrepancies in the calculation of NAV of the Fund. Should there be any incorrect pricing, the Management Company will take immediate remedial action to rectify any incorrect pricing at the Fund level. The Management Company‟s remedial action must extend to the reimbursement of money if the error is at or above the threshold of 0.5% of the NAV per Unit, unless the total impact on an individual account is less than RM10.00 in absolute amount, of which no reimbursement of money is required as the reprocessing costs may be greater than the amount of the adjustment. The Management Company is nevertheless allowed to pay any amount to the Unit Holders or former Unit Holders even though it is less than 0.5% of the NAV per Unit or RM10.00. Libra Invest Berhad Master Prospectus 119 How Is the Selling Price Computed Investors may invest in Units of the Fund on any Business Day. The number of Units invested is determined by dividing the investment amount (excluding sales charge) with the NAV per Unit at the next valuation point after the Management Company receives the investment application, rounded to the nearest two decimal places. Illustration : Determining Investment Amount & Units Entitlement Add : Investment amount RM 10,000.00 Sales charge (5.00%) RM 500.00 Total amount payable by investor RM 10,500.00 Investment amount RM 10,000.00 NAV per Unit RM 0.5000 The following day, the price of a Unit i.e., the NAV per Unit, will be published in the Manager‟s website. For example, if the NAV per Unit was RM0.5000 the number of Units invested would be: Divide : Number of Units invested 20,000.00 Note:The charges set out above are exclusive of GST payable by a Unit Holder. Refer to details on page 28. How Is the Liquidation Amount Computed Investors may liquidate their investment on any Business Day. The liquidation amount is calculated by multiplying the NAV per Unit at the next valuation point after the Management Company receives the liquidation application, with the number of units held. Illustration : Determining Liquidation Amount Number of Units to be liquidated Multiply : Less : 10,000.00 For example, if the NAV per Unit calculated at the next valuation point was RM0.5050, the liquidation amount would be: NAV per Unit RM 0.5050 Liquidation amount RM 5,050.00 RM 5,050.00 Repurchase charge (Nil) Net amount payable to investor NIL The selling and repurchase prices including the NAV per Unit of the Funds are available at our website at www.librainvest.com. Libra Invest Berhad Master Prospectus Switching of units through Entitlement oneINVEST / oneINVEST 120 Islamic – Determining Investment Amount and Units Investors investing through oneINVEST / oneINVEST Islamic may exercise unlimited free switches between equity Funds and non-equity Funds on any Business Day within the calendar year. Example : Switching from ASnitaBOND to EquityEXTRA Step 1 : To determine the switching amount of ASnitaBOND The switching amount is determined by multiplying the NAV per Unit of ASnitaBOND at the end of the Business Day with the number of units to be switched. Step 2 : To determine the number of units in EquityEXTRA The number of units is calculated by dividing the switching amount with the NAV per Unit of EquityEXTRA at the end of the Business Day and rounded to the nearest two decimal places. Illustration : Determining the Switching Amount Assuming an investor wishes to switch 20,000 units in ASnitaBOND to EquityEXTRA: Units in ASnitaBOND to be switched out Multiply: Divide: 20,000.00 NAV per Unit of ASnitaBOND RM 0.5862 Switching amount RM 11,724.00 NAV per Unit of EquityEXTRA RM 0.5233 ASnitaBOND EquityEXTRA Number of units in EquityEXTRA Therefore: Units before switch Units switch (out) / in Units after switch 22,403.98 20,000.00 0.00 (20,000.00) 22,403.98 0.00 22,403.98 Transaction Details Who Can Invest Local and foreign individuals, investing in single or joint names (joint-holders). Persons under the age of 18 are to jointly hold the investment with an adult. Corporate entities, trusts, co-operatives and foundations. How can I Purchase or Liquidate an Investment? Investments can be purchased or liquidated at the Management Company‟s office in Kuala Lumpur or at our authorised distributors or at our Johor Bahru Service Centre after completing an application form. Application to invest must be accompanied by either a copy of the applicant‟s identity card, passport or other identification. Where can I obtain an Application Form? The Management Company‟s office in Kuala Lumpur or at our authorised distributors or at our Johor Bahru Service Centre. Please refer to page 157 for full details. Libra Invest Berhad Master Prospectus 121 How do I pay for an Investment? By way of a standing instruction, subject to the rules and regulations of the banks. By a crossed cheque, banker‟s draft, money order or cashier‟ order made payable to Libra Invest Berhad. By depositing into any of the Management Company‟s bank accounts below: Maybank: Branch A/C. No Kuala Lumpur 514057-646827 Standard Chartered Bank: Branch A/C. No Kuala Lumpur 312-1-4359833-1 Please note that for the purpose of investor‟s protection and risk management, no cash shall be accepted by any of the Management Company‟s representatives or staff. Investors are advised not to make payment in cash to any individual agent when purchasing units of a Fund. How to Liquidate My Investment For all Funds (except MoneyEXTRA Fund), Units may be liquidated on any Business Day by completing a liquidation form. In the case of MoneyEXTRA Fund, liquidation notice must be given to the Management Company one (1) Business Day prior to the liquidation (i.e. T-1 day). For a transaction to take effect on the same day, the liquidation form must reach the Management Company on or before 3.30 p.m. For all Funds (except MoneyEXTRA Fund, LLF and LSLF Series 2), the liquidation of Units will be priced at NAV per Unit calculated at the next valuation point and payment will be made within ten (10) calendar days upon receipt of the duly completed original liquidation form by the Management Company. In the case of MoneyEXTRA, LLF and LSLF Series 2, the Management Company will use best efforts to make payment on the next Business Day (T+1 day). There is no limit as to frequency of liquidation transactions. Minimum Transaction Details for each Fund The minimum transaction details for each Fund are stipulated in the table below: Minimum Minimum Fund name initial Minimum additional investment liquidation investment Regular Non-regular (RM) (Units) (RM) (RM) IncomeEXTRA 5,000.00 200.00 1,000.00 2,000 Minimum transfer Minimum balance (Units) (Units) 5,000 5,000 EquityEXTRA 5,000.00 200.00 1,000.00 2,000 5,000 5,000 BondEXTRA 5,000.00 200.00 1,000.00 2,000 5,000 5,000 MoneyEXTRA 5,000.00 200.00 1,000.00 2,000 5,000 5,000 VersatileEXTRA 5,000.00 200.00 1,000.00 2,000 5,000 5,000 DividendEXTRA 5,000.00 200.00 1,000.00 2,000 5,000 5,000 TacticalEXTRA 5,000.00 200.00 1,000.00 2,000 5,000 5,000 LCLAF 5,000.00 1,000.00 2,000 5,000 5,000 50,000.00 10,000 5,000 5,000 1,000.00 2,000 5,000 5,000 LREF 5,000.00 200.00 Not applicable 200.00 SyariahEXTRA 5,000.00 200.00 1,000.00 2,000 5,000 5,000 ASnita 5,000.00 200.00 1,000.00 2,000 5,000 5,000 ASnitaBOND 5,000.00 1,000.00 2,000 5,000 5,000 LSLF Series 2 100,000.00 200.00 Not applicable 5,000.00 5,000 5,000 50,000 LLF 100,000.00 Libra Invest Berhad Master Prospectus 122 Transfer Facility Transfer between an individual account and a corporate account is not permitted. Switching Facility If you invest through oneINVEST / oneINVEST Islamic, * there is no switching fee imposed on switches made between equity Funds and non-equity Funds. This is to facilitate profit taking (if any), i.e. from holding in equity Funds and reinvestment in fixed income Funds. Switching between Funds will be at NAV per Unit to NAV per Unit. All switches are subject to availability of units. Switching from Shariah-compliant Funds to a conventional Fund is not encouraged especially for Muslim Unit Holders. *For the term of this Master Prospectus, switching facility is unlimited for Funds under the oneINVEST / oneINVEST Islamic. Minimum Switching Minimum switching under the oneINVEST / Management Company‟s discretion. oneINVEST Islamic is 5,000 units or such other limit at the For the term of this Master Prospectus, the minimum transaction amount specified above may be reduced by the Manager from time to time at its absolute discretion. EPF Members’ Investment Scheme EPF investor may withdraw from their EPF Account 1, to be invested in any of the EPF approved Funds (as per requirements of the EPF Members‟ Investment Scheme). To apply for withdrawal, investors are required to also complete a Borang KWSP 9N (AHL) for each application for withdrawal to invest via the EPF Members‟ Investment Scheme. Cooling-off Policy If you are an investor investing in any funds managed by the Management Company for the first time, there is a Cooling-off period of six (6) Business Days commencing from the date of receipt of the application by the Management Company. You will obtain a full refund of your net investment amount and the sales charge (if applicable) within ten (10) calendar days from the date we receive your notification to exercise this right. The cooling-off right is only given to an investor, other than those listed below, who is investing in any funds managed by the Management Company for the first time: a corporation or institution; a staff of the Management Company; and a person registered with a body approved by the SC to deal in unit trusts. This Cooling-off right is not applicable for your subsequent investments. Illustration : Determining The Cooling-off Refund Initial investment amount Add: Sales charge (5%) Total amount paid by investor (RM) 10,000.00 500.00 10,500.00 The investor exercised the Cooling-off Right and notified the Management Company within six (6) Business Days (Cooling-off Period). Net amount payable to investor 10,500.00 Note:The charges set out above are exclusive of GST payable by a Unit Holder. Refer to details on page 28. Libra Invest Berhad Master Prospectus 123 What Are the Important Points to Note before Investment Applications receive by the Management Company before 3.30 p.m., on any Business Day will have the Units issued at the Fund‟s NAV per Unit calculated at the end of that particular Business Day (i.e. forward pricing). The Management Company reserves the right to accept or reject any application for Units if the information is incomplete or if not accompanied by the required documents, or is not signed by authorised investors or where there are any other reasonable grounds to reject it. Unsuccessful applicants will be notified and are entitled to a full refund. Anti-Money Laundering Policy In compliance with the Anti-Money Laundering and Anti-Terrorism Financing Act 2001, the Management Company will conduct a customer due diligence prior to opening an account as and when necessary to help detect any money laundering activities. The Management Company is under an obligation to report to BNM should it suspect such activities. Distribution Policy and Reinvestment Policy It is the intention of the Management Company to declare distribution of income. The amount of income to be distributed will vary from period to period, depending on interest rates, market conditions, the performance and the objective of the Fund. Income distribution may be made out of realised capital gains, net profit from Islamic deposit, Islamic money market, net dividend income and other income received by the Fund. It is also the Management Company‟s policy to automatically reinvest declared income distribution into additional Units in the Fund at the end of the distribution day (at ex-distribution price) with no sales charge. For Unit Holders in MoneyEXTRA, liquidation notice of one (1) Business Day prior to liquidation must be given to the Management Company. Investors, who prefer to receive their income distributions in the form of cash payouts, may liquidate the reinvested units arising from distribution of income on any Business Day. Liquidation Reinvestment Policy Cheques for payment of liquidation requests which remain unclaimed for six (6) months will at the Management Company‟s absolute discretion be reinvested into additional Units of the Fund with no sales charge. Unclaimed Moneys Policy Any monies payable to Unit Holders that remain unclaimed after twelve (12) months from the date of payment shall be dealt with by the Manager in accordance with the Unclaimed Moneys Act, 1965. Libra Invest Berhad Master Prospectus 124 13. THE MANAGEMENT COMPANY: LIBRA INVEST BERHAD Corporate Profile of the Management Company LIB was incorporated on 27 September 1995 and is licensed by the Securities Commission of Malaysia to undertake the regulated activities of fund management and distribution of unit trusts. It is a member of the ECM Libra Financial Group Berhad, a company listed on Bursa Malaysia. As at 10 February 2016, LIB manages fourteen (14) unit trust funds, eight (8) wholesale funds and privately managed funds with a total fund size of RM5.737 billion. LIB‟s clients include pension funds, public listed companies, state funds, high net worth individuals and retail investors. The unit trust funds managed by LIB are: Fund Name Fund Category/Type Inception Date Designated fund manager IncomeEXTRA Balance/Income and Growth 10 September 1999 EquityEXTRA Equity/Growth 10 September 1999 Lee Chun Hong/ Elyzza Syazreen Zailan Chen Wee Ying BondEXTRA Bond/Growth 8 October 2002 Elyzza Syazreen Zailan MoneyEXTRA VersatileEXTRA 8 October 2002 28 October 2002 Elyzza Syazreen Zailan Charlene Chung Pei Nie DividendEXTRA Bond/Income Balanced/Growth (and to a lesser extent income) Equity/Income 18 March 2005 Charlene Chung Pei Nie TacticalEXTRA Equity/Growth 18 March 2005 Lee Chun Hong LCLAF Equity/Growth 18 July 2007 Lee Chun Hong LLF Money Market/Income 18 February 2009 Elyzza Syazreen Zailan LREF Equity/Capital Growth Balanced (Shariah)/Growth (and to a lesser extent income) 18 March 2011 Chen Wee Ying 12 March 1996 Charlene Chung Pei Nie Unit Trust Funds SyariahEXTRA ASnita Equity (Shariah)/Growth (and to a lesser extent income) 4 May 1998 Lee Chun Hong ASnitaBOND Bond (Shariah)/Income 18 March 2005 Elyzza Syazreen Zailan LSLF Series 2 Money Market (Shariah)/ Income 4 February 2015 Elyzza Syazreen Zailan Staff Strength As at 10 February 2016, LIB is backed by a strong team of 65 executives and 10 non-executive staff and has ample financial and human resources with the necessary qualification and experiences to undertake the management activity of the unit trust funds and private funds portfolio. Libra Invest Berhad Master Prospectus 125 Summary of Financial Position Past performance of LIB based on the audited accounts for the last three financial years ended 31 January: 2015 2014 2013 (RM’000) (RM’000) (RM’000) Paid-up Share Capital 6,500 6,500 6,500 Shareholders‟ Funds 13,862 13,008 12,477 Operating Revenue 12,768 12,762 13,062 Pre-Tax Profit 1,007 683 2,410 After Tax Profit 855 539 1,812 Past performance of LIB based on the audited accounts for the last three financial years ended 31 January:2015 2014 2013 (sen) (sen) (sen) Net Earnings Per share 13 8 28 Net Dividend Per share - Our Roles, Duties and Responsibilities LIB is engaged in the business of managing, administering, marketing and distributing unit trust funds. Our roles, duties and responsibilities are as follows: to manage and administer the Funds in a proper and efficient manner in accordance with the respective Deeds of the Funds, the Guidelines and securities laws; acceptable and efficacious business practice within the unit trust industry; and the internal controls and policies in place at the Management Company. Material Litigation and Arbitration As at 10 February 2016, the Manager is not engaged in any material litigation as plaintiff or defendant and the Manager is not aware of any proceedings, pending or threatened or of any facts likely to give rise to any proceedings which might materially and adversely affect its financial position or business. Roles and Functions of the Board of Directors The board of directors of the Management Company play a part in directing the affairs of the Management Company and the funds under its management. The board of directors meets at least once every quarter to receive recommendations and reports on investment activities from the investment committee of the Funds and the senior representatives of the Management Company. There are five (5) directors and one (1) alternate director appointed to the board of directors of LIB. Name Appointment Date Datuk Kamarudin bin Md Ali Designation (Independent / NonIndependent) Chairman & independent director Khairudin bin Ibrahim Independent director 21 April 2003 Mahadzir bin Azizan Independent director 25 April 2007 Gareth Lim Tze Xiang Non-independent director 7 June 2012 Chin Jon Wei Alternate director to Mr Gareth Lim Tze Xiang 5 September 2012 Lee Wei Chung Non-independent director 28 December 2015 8 May 2007 Roles and Functions of the Investment Committee The investment committee is responsible for the Fund‟s investment policies and guidelines, and shall review and approve the investment strategies undertaken by the fund managers of the Fund. Investment committee meetings are held quarterly or more frequently if required. Libra Invest Berhad Master Prospectus The investment committee comprises three (3) independent members and three (2) non-independent members: Name Designation (Independent / non-independent) Mahadzir bin Azizan Chairman & independent member Khairudin bin Ibrahim Independent member Datuk Kamarudin bin Md Ali Independent member Gareth Lim Tze Xiang Non-independent member Lee Wei Chung Non-independent member The dates of appointment of the members of the investment committees of the Funds are as follows: Fund Name IncomeEXTRA Mahadzir bin Azizan 9 May 2007 Khairudin bin Ibrahim 2 May 2003 Datuk Kamarudin bin Md Ali 9 May 2007 Gareth Lim Tze Xiang 2 Jul 2012 Lee Wei Chung 28 Dec 2015 EquityEXTRA 9 May2007 2 May 2003 9 May 2007 2 Jul 2012 28 Dec 2015 BondEXTRA 9 May 2007 2 May 2003 9 May 2007 2 Jul 2012 28 Dec 2015 MoneyEXTRA 9 May 2007 2 May 2003 9 May 2007 2 Jul 2012 28 Dec 2015 VersatileEXTRA 9 May 2007 2 May 2003 9 May 2007 2 Jul 2012 28 Dec 2015 DividendEXTRA 9 May 2007 1 Mac 2005 9 May 2007 2 Jul 2012 28 Dec 2015 TacticalEXTRA 9 May 2007 1 Mac 2005 9 May 2007 2 Jul 2012 28 Dec 2015 LCLAF 5 June 2007 5 June 2007 5 June 2007 2 Jul 2012 28 Dec 2015 LREF 9 Aug 2010 9 Aug 2010 9 Aug 2010 2 Jul 2012 28 Dec 2015 LLF 22 Jan 2009 22 Jan 2009 22 Jan 2009 2 Jul 2012 28 Dec 2015 SyariahEXTRA 9 May 2007 17 Sept 2002 9 May 2007 2 Jul 2012 28 Dec 2015 ASnita 9 May 2007 2 May 2003 9 May 2007 2 Jul 2012 28 Dec 2015 ASnitaBOND 9 May 2007 1 Mac 2005 9 May 2007 2 Jul 2012 28 Dec 2015 LSLF Series 2 19 Jan 2015 19 Jan 2015 19 Jan 2015 19 Jan 2015 28 Dec 2015 The Board of Directors and Investment Committee Members Name: Datuk Kamarudin bin Md Ali Position: Chairman of the board of directors, independent director & independent investment committee member Qualification: Bachelor of Science (Hons) Mechanical Engineering (University of Strathclyde, Glasgow), Masters in Science (Engineering) (University of Birmingham, UK), Certificate Course in Finance and Budgeting (University of Pittsburgh, America) and Post Graduate course (Royal College of Defense Studies, UK) Experience: He served the Royal Malaysia Police (RMP) in various positions for more than 30 years with his last appointment as Director of Management before retiring in 2006. He has experience in logistics and finance, human resources management, development and training. Name: Khairudin bin Ibrahim Position: Independent director & independent investment committee member Qualification: Degree in Accounting (Hons) (Universiti Kebangsaan Malaysia), Member of the Malaysian Institute of Accountants (MIA) and Certified Practising Accountant (Australia). Experience: He is the partner of Afrizan Tarmili Khairul Azhar (Chartered Accountants). He was previously from a big 4 international audit firm where he managed a portfolio of clients. Currently, he sits in the Financial Statements Review Committee of the MIA, Public Practice Committee of CPA Australia and in working groups of Malaysian Accounting Standards Board (MASB). 126 Libra Invest Berhad Master Prospectus Name: Mahadzir bin Azizan Position: Independent director & independent investment committee member Qualification: Barrister-At-Law (Lincoln‟s Inn), London Experience: He has more than 25 years experience in corporate legal matters. He is currently a director of ECM Libra Financial Group Berhad, Syarikat Takaful Malaysia Berhad and RCE Capital Berhad. Name: Gareth Lim Tze Xiang Position: Non-independent non-executive director and non-independent investment committee member Qualification: Bachelor of Arts in Economics (St. Catharine‟s College, University of Cambridge, UK) Experience: He began his career as part of Morgan Stanley‟s mergers and acquisitions practice in Singapore. He was a pioneer member of the management teams at Tune Hotels and AirAsia X where he was responsible for the est ablishment and development of each company. He joined Plato Capital Limited in September 2009 as Head of Investments, responsible for the formulation and implementation of overall investment strategy and is presently the Chief Executive Officer of Plato Capital Limited. Name: Chin Jon Wei Position: Alternate director to Gareth Lim Tze Xiang Qualification: A CFA Charterholder (CFA), a Member of the Institute of Chartered Accountants in England and Wales (ICAEW) and a Member of the Malaysian Institute of Accountants (MIA) Experience: He served his articleship in the audit department of a mid-tier accounting firm in Kuala Lumpur where he led teams of junior executives in the financial statement audits of both listed and owner-managed companies. He was subsequently a sell-side research equity analyst at UOB Kay Hian covering mid to large cap listed plantation companies within the South East Asian region. He joined the investment division of Plato Capital Limited in 2011 and is currently the Vice President of said division. Name: Lee Wei Chung Position: Chief executive officer, non-independent executive director & non-independent investment committee member Qualification: BA (Hons) Economics, MSc International Banking and Financial Studies, Chartered Financial Analyst (CFA) Experience: He has more than 20 years of working experience in buy and sells sides of the financial services industry. A former portfolio manager for a family office and later general manager of investment in Amanah Raya-JMF Asset Management. He has also taken roles as an equity analyst and was the equity sales specialist as well as the head of dealing of Macquarie Capital Malaysia. Management Staff Name: Ong Lei Hua Position: Director, finance and operations Qualification: Fellow Member of the Association of Chartered Certified Accountants and a Member of Malaysian Institute of Accountants Experience: She joined the holding company of LIB in 2000 and moved to LIB in 2006. She has more than 20 years of experience in audit and finance. She started her career as an auditor with Coopers & Lybrand which later became PricewaterhouseCoopers. 127 Libra Invest Berhad Master Prospectus Name: Anis Zafirah Binti Ahmad Kamal Position: Compliance officer Qualification: Bachelor of Economics (Hons.), International Islamic University Malaysia Experience: She has more than 8 years of experience in the financial services industry covering banking, unit trust and fund management. She joined LIB in 2014 as a Senior Compliance Executive. Prior to that, she served AmanahRaya Investment Management Sdn Bhd in compliance, and was earlier serving Kuwait Finance House (Malaysia) Berhad. She is the designated person responsible for the compliance matters of LIB. She also has the necessary knowledge pertaining to Shariah matters. Name: Azra-Banu binti Masheerul Hassan Position: Manager, legal Qualification: Bachelor of Laws (LL.B) (Hons) Experience: She has been working as an advocate and solicitor since 1996, doing mainly conveyancing matters (including banking matters). She joined ECM Libra Investment Bank Berhad in 2010 and moved on to LIB in 2012. 128 Duties and Responsibilities of the Fund Managers LIB‟s fund managers are authorized to manage the Funds in accordance with the Funds‟ stated investment objective. This authority is subject to the requirements of this Master Prospectus, the respective Deeds, Guidelines and relevant laws, acceptable and efficacious business practice within the unit trust industry, the policies and internal controls in place of the Management Company. The fund managers will report to the investment committee of the Fund and will implement the investment strategies selected by this committee. Profile Of Key Investment Personnel Name: Lee Wei Chung Position: Chief executive officer & non-independent executive director Qualification: Please refer to page 127 Experience: Please refer to page 127 Name: Elyzza Syazreen binti Zailan Position: Head of fixed income Qualification: Bachelor of Science in Actuarial Science (University of Illinois, Urbana-Champaign, USA), Distinction Experience: She started her career with ECM Libra Investment Bank Berhad under the management associate trainee programme in 2009 where she completed training in treasury sales, institutional stockbroking, equity research, asset management and investment banking. Upon completing the programme, she was subsequently selected to join LIB in 2010. Before she was promoted to head of fixed income, she held the position of senior fund manager, where she assisted the chief investment officer-fixed income in overseeing the overall fixed income fund performance and growth of asset under management. She has five (5) years of experience in fund management, economics and fixed income research. She currently holds a Capital Markets Services Representative‟s Licence. Libra Invest Berhad Master Prospectus Name: David Yong Siew Huen Position: Fund manager Qualification: The Association of Chartered Certified Accountants (ACCA) Experience: Having garnered nine (9) years of audit and commercial accounting experience, he started his financial industry career in 1992 with Arab-Malaysian Securities as an analyst. In 1995 he moved to institutional sales handling a portfolio of foreign broker-dealers, local institutions/corporates and high net-worth individuals. He joined ECM Libra Investment Bank in 2008 to do corporate broking (sales) before transferring to LIB in December 2012. He holds a Capital Markets Services Representative‟s Licence. Name: Joy-Marina Choong Wai Kwin Position: Fund manager Qualification: Bachelor of Business in Economics & Finance (RMIT University, Australia) Experience: She joined LIB in 2010. Prior to that she was with Hong Leong Bank Berhad, where she has 11 years of experience in credit management and recovery. She has five (5) years of experience in fund management and credit analysis, and holds a Capital Markets Services Representative‟s Licence. Name: Ong Eu Lin Position: Fund manager Qualification: Bachelor of Economics, University of Malaya Experience: She joined ECM Libra Investment Bank Berhad under the management associate trainee programme in 2009 where she completed training in treasury sales, institutional stockbroking, equity research, asset management and investment banking. Upon completing the programme, she was subsequently selected to join LIB in 2010. She has five (5) years of experience in fund management, economics and fixed income research. She currently holds a Capital Markets Services Representative‟s Licence. Name: Charlene Chung Pei Nie Position: Fund manager Qualification: MSc In Accountancy & Finance (Birmingham City University, UK) and The Association of Chartered Certified Accountants (ACCA) Experience: She started her career at ECM Libra Investment Bank Berhad under the Management Associate Programme in 2011 whereby she completed her training in finance, internal audit, compliance, risk management, credit, research and asset management. Upon completion of the programme, she was subsequently selected to join LIB in 2012. She has three (3) years of experience in fund management and equity research. She currently holds a Capital Markets Services Representative‟s Licence. Name: Chen Wee Ying Position: Fund manager Qualification: Master in Mathematics (University of St. Andrews) Experience: She started her career at ECM Libra Investment Bank Berhad under the Management Associate Programme in 2011 whereby she completed her training in future, asset management, finance, risk management, compliance and research. Upon completion of the programme, she was subsequently selected to join LIB in 2012. She has three (3) years of experience in fund management and equity research. She currently holds a Capital Markets Services Representative‟s Licence. 129 Libra Invest Berhad Master Prospectus Name: Aaron Agnel Dasan Position: Fund manager Qualification: BA Economics, University of Missouri – Kansas City, USA Experience: He has more than 10 years of experience in Equities and Capital markets. He began his career in Corporate Finance with Aseambankers Malaysia Berhad (now Maybank Investment Bank Berhad) in 2005 and was primarily involved in mergers and acquisitions. He subsequently moved to Al Rajhi Investment Bank (Malaysia) Berhad in 2008 where he was involved in regional Corporate Banking and Structured & Project Finance transactions. In 2011, he joined ECM Libra Investment Bank Berhad (ECMLIB) and was involved in advisory and initial public offerings and thereafter absorbed into Kenanga Investment Bank Berhad (Kenanga) following the sale of ECMLIB to Kenanga. He returned to ECM Libra Financial Group in 2014 and was transferred to Libra Invest Berhad in 2015. He currently holds a Capital Markets Services Representative‟s Licence. Name: Lee Chun Hong Position: Fund manager Qualification: Bachelor of Commerce (Accounting & Finance), Certified Public Accountant (CPA), Chartered Financial Analyst (CFA) Experience: He has 10 years working experience in fund management industry. He joined Libra Invest Berhad in 2015. Prior to joining LIB, he has taken a role as an equity research analyst and subsequently promoted to portfolio manager in Public Mutual Bhd where he had gained experience in equity research and portfolio construction. He commenced his career as an auditor at an international public accounting firm, PricewaterhouseCoopers before moving to fund management. 130 Libra Invest Berhad Master Prospectus 131 14. THE SHARIAH ADVISER Corporate Profile of the Shariah Adviser IBFIM has been appointed as the Shariah Adviser for Libra Amanah Saham Wanita, Libra ASnitaBOND Fund, Libra SyariahEXTRA Fund and Libra Shariah Liquidity Fund Series 2 (“the Funds”). IBFIM is scheduled to hold regular meeting with the Manager and/or the investment committee of the Funds on a quarterly basis. IBFIM will advise the Manager on the selection of investment tools to be adopted. IBFIM will also counsel the mechanism of the operations of the Funds‟ activities to ensure that the operations of the Funds comply with Shariah requirements. General Information of IBFIM IBFIM was incorporated as a company limited by guarantee and not having share capital in Malaysia under the Companies Act, 1965 on 15 February 2007. Experience in Advisory and Services IBFIM is registered with the SC to act as a Shariah Adviser for Shariah-compliant collective investment schemes and sukuk issuance. IBFIM is also involved in numerous Shariah-compliant private mandates as well as the Shariah Adviser for Islamic REITs and Islamic asset management houses. As at 10 February 2016, IBFIM has total staff strength of 94 employees, and has 120 funds under its supervision. Roles and Responsibilities of IBFIM as the Shariah Adviser As the Shariah Adviser, the role of IBFIM is to ensure that the operations and investments of the Funds are in compliance with Shariah requirements. The Shariah Adviser reviews the Funds‟ investments on a monthly basis to ensure compliance with Shariah requirements at all times and meets with the Manager on a quarterly basis to review and advise on the Funds‟ compliance with Shariah requirements. Final responsibility for ensuring Shariah compliance of the Funds with Shariah requirements in all relevant aspects rests solely with the Manager. In line with the Guidelines, the roles of IBFIM as the Shariah Adviser are; 1. ensuring that the Shariah-compliant unit trust fund (“the Funds”) are managed and administered in accordance with the Shariah principles; 2. providing expertise and guidance for the Funds in all matters relating to Shariah principles, including on the Funds‟ Deed and Prospectus, its structure and investment process, and other operational and administrative matters; 3. consulting the SC who may consult the SACSC where there is any ambiguity or uncertainty as to an investment, instrument, system, procedure and/or process; 4. scrutinising the Funds‟ compliance report as provided by the compliance officer, transaction report provided by or duly approved by the Trustee and any other report deemed necessary for the purpose of ensuring that the Funds‟ investments are in line with the Shariah principles; 5. preparing a report to be included in the Funds‟ interim and annual report certifying whether the Funds have been managed and administered in accordance with the Shariah principles; 6. ensuring that the Funds comply, with any guideline, ruling or decision issued by the SC, with regard to Shariah matters; 7. vetting and advising on the promotional materials of the Funds; and 8. assisting and attending to any ad-hoc meeting called by the SC and/or any other relevant authority. Libra Invest Berhad Master Prospectus Profile of the Shariah Team IBFIM‟s Shariah team consist of the following personnel: Name Dato’ Mohd Bakir bin Haji Mansor Position: Distinguished Shariah Advisor Qualification: Shahadah Ulya (Kolej Islam Malaya) Experience: He is a member of the Shariah Advisory Body of Syarikat Takaful Malaysia Berhad and sits on the Shariah Panel Committee of Amanah Ikhtiar Malaysia. He is also the Chairman of the Shariah Advisory Committee of BIMB Securities Sdn. Bhd. Prior to joining IBFIM, Dato‟ Mohd Bakir was the Shariah Coordinator at Bank Islam Malaysia Berhad (“BIMB”) and the Secretary of the Shariah Advisory Council of BIMB, from 1984 to 2001. Previously, he served at the National Council for Islamic Religious Affairs in the Prime Minister's Department for 10 years from 1971. He was also a Chief Assistant Director at the Islamic Research Centre for 4 years from 1981. He holds a Shahadah Ulya from Kolej Islam Malaya. Dato‟ Mohd Bakir was awarded “Anugerah Maulidur Rasul 1434H/2013M” by the government of Malaysia for his contributions in promoting the Islamic finance industry. Name: Mohd Nasir bin Ismail Position: Shariah Advisor Qualification: Bachelor of Shariah (Hons) (University of Malaya) and Islamic Financial Planner (IFP) Experience: He has been with IBFIM since its incorporation in 2001. He is responsible in providing Shariah input on the advisory, consultancy and research functions with regard to Islamic banking, takaful, Islamic capital market and Shariah-compliant unit trust funds. Prior to joining IBFIM, he was a faculty member of a private higher learning institution specializing in Islamic studies, Institut Pengajian Ilmu-Ilmu Islam, Kelantan. He graduated with a Bachelor of Shariah (Honours) Degree from the University of Malaya. He is also a designated person responsible for Shariah matters related to the Funds. Name: Ahmad Zakirullah bin Mohamed Shaarani Position: Senior Shariah Officer Qualification: Master in Islamic Revealed Knowledge and Human Sciences (Honours) (International Islamic University of Malaysia) Experience: He joined IBFIM in February 2008. He is responsible in providing Shariah input on the advisory, consultancy and research functions with regard to Islamic banking, takaful, Islamic capital market and Shariah-compliant unit trust funds. Prior to joining IBFIM, he served at University Sains Islam Malaysia and PTPL College. He obtained his Diploma of Shariah Islamiyyah (Honours) from Higher Institute of Islamic and Arabic Language (MADIWA), Perak, Bachelor of Shariah Islamiyyah (Honours) Degree from Al-Azhar University, Egypt and Master‟s Degree (with Honours) of Islamic Revealed Knowledge and Heritage (Fiqh and Usul al-Fiqh) from the International Islamic University Malaysia. He is also a designated person responsible for Shariah matters related to the Funds. 132 Libra Invest Berhad Master Prospectus 133 15. THE TRUSTEE Maybank Trustees Berhad (“MTB”) is the appointed Trustee for IncomeEXTRA, EquityEXTRA, MoneyEXTRA, BondEXTRA, VersatileEXTRA, TacticalEXTRA, ASnita and SyariahEXTRA. Corporate Profile of the Trustee Name of Trustee : Maybank Trustees Berhad (5004-P) Registered Office : 8th Floor, Menara Maybank 100, Jalan Tun Perak 50050 Kuala Lumpur Date of Incorporation Staff Strength : : Funds under Trusteeship : Directors : 12 April 1963 As at 10 February 2016, the Trustee has a total of 33 staff, comprising twenty six (26) executives and seven (7) non-executives. Sixty (60) unit trust funds, five (5) wholesale funds and four (4) real estate investment trusts/property trust funds and one (1) private retirement scheme (consisting of four (4) funds) as at 10 February 2016 Encik Zainal Abidin Jamal (Non independent non-executive director & chairman) Dato‟ Mohd. Hanif bin Suadi (Non-independent non-executive director) Dato‟ Dr Tan Tat Wai (Independent non-executive director) Ms Ong Sau Yin (Independent non-executive director) Financial Position The following is a summary of the past performance of MTB based on audited accounts for the past 3 financial years: Financial Year Ended 31 December 31 December 31 December 2014 2013 2012 (RM) (RM) (RM) Paid-up Share Capital 500,000 500,000 500,000 Shareholders‟ funds 31,450,665 21,002,473 12,107,452 Turnover 25,573,893 21,316,197 14,047,931 Pre-tax Profit 14,090,866 11,826,263 4,571,241 After tax Profit 10,448,192 8,895,021 3,428,577 Experience in Trustee Business With more than 22 years of experience as Trustee to unit trust funds/schemes, Maybank Trustees Berhad has under its trusteeship a total of sixty (60) unit trust funds, five (5) wholesale funds, one (1) private retirement scheme (consisting of four (4) funds) and four (4) real estate investment trust/property trust funds as at 10 February 2016. Key Personnel Mr Chong Kin Tuck – Chief Executive Officer Mr Chong Kin Tuck joined MTB in September 2014. Kin Tuck has more than 20 years of work experience in the banking industry, covering Securities Services and Lending. This includes a banking career in Citibank for 20 years; covering Loans operations, Mortgage business, Share Financing & Investment operations, Securities & Fund Services operations, Securities Services product development and most recently as Head of Direct Custody & Clearing at J.P Morgan Chase Bank Berhad. Libra Invest Berhad Master Prospectus 134 Mr Samuel Hwa - Head, Business Development & Strategies Mr Samuel Hwa joined MTB in August 2013. He holds a Bachelor of Law degree from the University of London and a Bachelor of Science in Business from Pennsylvania State University double majoring in Finance and Marketing/Management. He started his career in America as a business analyst and later joined an insurance company in Malaysia. Prior to joining Maybank, he was with CIMB Investment Bank Berhad. Samuel has worked in the Securities Services industry for over 5 years. Ms Bernice K.M Lau - Head, Operations Ms Bernice Lau was appointed as Head, Operations in November 2013. Prior to her appointment, she was the Head, Corporate Trust of MTB. She joined MTB in December 2008. Prior to joining MTB, she was a Legal & Compliance Officer of UOB Trustees Bhd which subsequently merged with OSK Trustees Berhad. She has more than 8 years of experience in trustee industry. She holds a LL.B (Hons) from University of London and a Certificate in Legal Practice from Legal Profession Qualifying Board, Malaysia. Trustee’s Statement of Responsibility The Trustee has given its willingness to assume the position and all the obligations that come along with them under the Deed of the Fund and all relevant written laws. The Trustee is entitled to be indemnified out of the assets of the Fund for any liability inc urred by the Trustee in performing or exercising any of its powers or duties in relation to the Fund. This indemnity is in addition to any indemnity allowed by law. However, it does not extend to liabilities arising from a breach of trust or failure to show the due care and diligence required of the Trustee having regard to its powers, authorities, and discretions under the Deed. Roles, Duties and Responsibilities of the Trustee The Trustee‟s role is mainly to act as custodian of the Fund and to exercise all due diligence and vigilance in carrying out its functions and duties and to safeguard the rights and interests of the Unit Holders. Apart from being the legal owner of the Fund‟s assets, the Trustee is responsible for ensuring that the Manager performs its obligations in accordance with the provisions of the Deed and the relevant laws. Delegates of the Trustee MTB has delegated its custodian function to Malayan Banking Berhad. The custodian function is run under Maybank Custody Services (“MCS”), a unit within Malayan Banking Berhad. MCS commenced operations in 1983 and has been appointed as custodian of unit trust funds since 1989. MCS provides clearing and custody services for Malaysian equity and fixed income securities to domestic and foreign institutional clients. In addition, MSC offers global custody services to domestic institutions/clients that have foreign investments. MTB has appointed Standard Chartered Bank Malaysia Berhad (“SCBMB”), as the custodian of the foreign assets of the Fund. The assets are held in the name of the Fund through the custodian‟s wholly owned subsidiary and nominee company, Cartaban Nominees (Tempatan) Sdn Bhd. The assets are automatically registered into the name of the Fund. SCBMB was incorporated in Malaysia on 29 February 1984 under the Companies Act 1965 as a public limited company and its subsidiary of Standard Chartered plc (the holding company of a global banking group). SCBMB was granted a license on 1 July 1994 under the Banking and Financial Institutions Act, 1989. SCBMB has been providing custody services for more than twenty (20) years. SCBMB has been providing sub-custody services to local investors in Malaysia since 1995. Both custodians act only in accordance with instructions from the Trustee. Libra Invest Berhad Master Prospectus 135 Material Litigation and Arbitration As at 10 February 2016, save for the suits mentioned herein below, the Trustee is not engaged in any material litigation as plaintiff or defendant and the Trustee is not aware of any proceedings, pending or threatened or of any facts likely to give rise to any proceedings which might materially and adversely affect its financial position or business. 1. The bondholders of the Al-Bai Bithaman Ajil (“ABBA”) bonds (“bondholders”) issued by Pesaka Astana (M) Sdn Bhd (“PASB”) have sued PASB for its failure to meet its bonds payment obligations under Kuala Lumpur High Court Civil Suit No. D5(D6)-22-1810-2005 (“ABBA Suit”) and cited the Trustee as one of 12 codefendants in the ABBA Suit. The claim in the ABBA Suit is for RM149,315,000.00 or any other sum that the Court deems fit. The other defendants in the ABBA Suit include among others the Arranger, PASB‟s Chief Executive Officer, one of PASB‟s directors and associate companies of the Chief Executive Officer and the said director. The Trustee has defended the ABBA Suit and its trial has concluded. The Trustee had appealed against the decision made by the High Court on 30 June 2010 in respect of the ABBA Suit in awarding judgement against it. The appeals proceeded on 22, 23, 26, 27, 28, 29 and 30 September 2011 and 3 October 2011. The Court of Appeal had on 8 November 2011 awarded the Trustee and the Arranger a limited indemnity against PASB, PASB‟s Chief Executive Officer, one of PASB‟s directors and associate companies of the Chief Executive Officer and the said director (collectively “PASB And Their Associated Defendants”) but found the Trustee and the Arranger equally liable to the bondholders. The Federal Court had on 5 April 2012 granted the Trustee leave to appeal to the Federal Court against certain parts of the decision of the Court of Appeal (“Federal Court Appeal”). The Federal Court Appeal was heard on 6, 7, 8, 20, 21 and 23 November 2012 and on 2, 3 and 4 January 2013. The hearing dates of 17 to 19 October 2012 and 19 November 2012 were vacated. The Federal Court had on 10 February 2014 delivered its decision (“Decision”) wherein it had, among others, allowed the Trustee a full indemnity against PASB And Their Associated Defendants and reduced the judgement sum against the Trustee to approximately RM107 million without apportionment of liability against the Arranger. PASB‟s Chief Executive Officer and associate companies of the Chief Executive Officer (collectively the “Pesaka Defendants”) had filed an application for the Federal Court to grant leave to review its Decision against them (“Review Application 1”). On 29 September 2014, the Federal Court allowed the Pesaka Defendants‟ application to withdraw Review Application 1. Most of the bondholders had filed an application for the Federal Court to grant leave to review its Decision in finding the Arranger not liable (“Review Application 2”). On 29 September 2014, the Federal Court dismissed Review Application 2. 2. Connected to the ABBA Suit, Amanah Short Deposits Berhad [now MIDF Amanah Investment Bank Berhad (“MIDF”)], a Noteholder of the Combined Commercial Papers and/or Medium Term Notes/Letters of Credit/Financial Guarantee Facilities (“CP/MTN”) totalling RM13 million and issued by PASB, has sued PASB for full payment under the CP/MTN arising from a cross-default by PASB under its ABBA bonds under Kuala Lumpur High Court Civil Suit No. D2-22-1085-2006 (“CP/MTN Suit”). The Trustee was cited as one of 5 codefendants in the CP/MTN Suit. The claim in the CP/MTN Suit is for RM13 million or any other sum that the Court deems fit and damages. The other defendants in the CP/MTN Suit are the Arranger, PASB‟s Chief Executive Officer and one of PASB‟s directors. MIDF withdrew its claim against the Arranger in November 2014. The Trustee has defended the CP/MTN Suit and trial has concluded. On 14 August 2015, the High Court dismissed MIDF‟s claim against the Trustee (“Dismissal”) and found PASB‟s Chief Executive Officer and one of PASB‟s directors liable for MIDF‟s loss. MIDF has filed a Notice of Appeal against the Dismissal (“Appeal”). The Appeal is scheduled for hearing on 16 March 2016. The Trustee has obtained leave of the court to proceed with the actions against PASB given that further to an unrelated suit a provisional liquidator had been appointed against PASB. The Trustee has also obtained leave of the court to proceed with the actions against PASB following the court's order to wind-up PASB further to the unrelated suit. In any event, any successful claim that may be established against the Trustee will be covered by the Trustee‟s insurer and/or Malayan Banking Berhad as the ultimate holding company of the Trustee. As such, the ABBA Suit and the CP/MTN Suit will not materially affect the business or financial position of the Trustee. Libra Invest Berhad Master Prospectus 3. 136 Several holders of the bonds (“Bondholders”) issued by Aldwich Berhad [In Receivership] (“Aldwich”) have sued Aldwich for its failure to settle its indebtedness to the Bondholders following the default of the said bonds in 2010 and cited the Trustee as one of 6 co-defendants under Kuala Lumpur High Court Civil Suit No. D22NCC-1622-11/2012 (“Aldwich Bondholders‟ Suit”). The claim against the Trustee is for the sum of RM177,248,747.31 or any other sum that the Court deems fit. The other defendants are the holding company of Aldwich, the Chief Executive Officer of the holding company of Aldwich, the Security Agent and the Reporting Accountant. The Trustee does not admit liability to the Aldwich Bondholders‟ Suit and has defended it. Trial has concluded and oral submissions are fixed on 17 and 24 February 2016. The Aldwich Bondholders‟ Suit will not materially affect the business or financial position of the Trustee.” Libra Invest Berhad Master Prospectus 137 CIMB Islamic Trustee Berhad is the appointed Trustee for ASnitaBOND and LSLF Series 2. Corporate Profile of the Trustee CIMB Islamic Trustee Berhad (“CITB”) Level 13, Menara CIMB Jalan Stesen Sentral 2 Kuala Lumpur Sentral 50470 Kuala Lumpur Malaysia 19 January 1988 Name of Trustee Registered Office : : Date of Incorporation Paid up Share Capital : : Staff Strength Funds under Trusteeship : : Fifteen (15) executives and four (4) non-executives as at 10 February 2016 48 funds as at 10 February 2016 Directors : Zahardin Omardin (Independent director & chairman, non-executive) RM1,000,000 (200,000 ordinary shares of RM10 each and partly paid up RM 5 each) Mohamad Safri Shahul Hamid (Non-independent director, non-executive) Liew Pik Yoong (Non-independent director, executive) Chief Executive Officer : Liew Pik Yoong Financial Position The following is a summary of the past performance of CITB based on audited accounts for the past three (3) financial years ended 31 December. 2014 Year Ended 31 December 2013 2012 (RM’000) (RM’000) (RM’000) Paid-up Share Capital Shareholders‟ funds Turnover* 1,000 5,018 3,403 1,000 6,573 2,788 1,000 6,311 4,000 Pre-tax Profit / (Loss) After tax Profit / (Loss) 1,312 945 370 263 1,386 993 *Only Shariah-compliant income are recognised since the entity’s conversion to Islamic in 2012. Experience in Trustee Business As at 10 February 2016, CITB acts as trustee to one (1) real estate investment trust funds, 22 unit trust funds, 22 wholesale funds and one (1) private retirement scheme (consisting of three (3) funds) and has more than 26 years of experience as trustees to unit trust funds. In addition to overseeing these funds, CITB also acts as trustee to private debt securities issues such as sukuk, bonds and notes. Other than being the administrator of deceased‟s estates, executor of wills, trustee for minors or incapacitated persons, CITB also acts as trustee for public, charitable, staff retirement, and pension/ gratuity fund scheme, custodian trustee for associations, clubs and others. CITB is supported by nineteen (19) staff, comprising of fifteen (15) executives and four (4) non-executive as at 10 February 2016. Key Personnel Liew Pik Yoong, Susan (Chief Executive Officer) Susan holds the position of CEO, Group Trustee Services in addition to her role as Head of Securities Services in CIMB. She joined CIMB in 2011 and has over 28 years experience in the financial market and securities industry. Prior to CIMB, she held various leadership roles such as Head/Director of Investors & Intermediaries, Head of Securities Services, Vice President/HOD with local foreign banks responsible for capital market products such as custody, nominees, unit trust, fund administration and share margin services. She was also previously Chief Operating Officer with a local foreign trustee company. Susan holds a professional degree from the Institute of Chartered Secretaries & Administrators (ICSA) Libra Invest Berhad Master Prospectus 138 Lee Kooi Yoke (Chief Operating Officer) Ms Lee holds a Bachelor Degree in Administration (Finance) from Griffith University, Australia and she is a member of both the Certified Practising Accountants (CPA) Australia and the Malaysia Institute of Accountant and Financial Planning Association Malaysia. She has more than 22 years of working experience in the financial industry. Prior to her current appointment, she headed the operations of a unit trust management company responsible for transfer agency, investment back-office, system and projects and retail and corporate agency operations. Also, prior to this position, she headed the investment operations of an established insurance company in Malaysia and Singapore. Roles, Duties & Responsibilities of the Trustee The Trustee‟s functions, duties and responsibilities are set out in the Deed. The general functions, duties and responsibilities of the Trustee include, but are not limited to, the following: (a) Take into custody the investments of the Fund and hold the investments in trust for the Unit Holders; (b) Ensure that the Manager operates and administers the Fund in accordance with the provisions of the Deed, SC Guidelines and acceptable business practice within the unit trust industry; (c) As soon as practicable notify the SC of any irregularity or breach of the provisions of the Deed, SC Guidelines and any other matters which in the Trustee's opinions may indicate that the interests of Unit Holders are not served; (d) Exercise reasonable diligence in carrying out its functions and duties, in actively monitoring the operations and management of the Fund by the Manager to safeguard the interests of Unit Holders; (e) Maintain, or cause the Manager to maintain, proper accounting records and other records as are necessary to enable a complete and accurate view of the Fund to be formed and to ensure that the Fund is operated and managed in accordance with the Deed of the Fund, Prospectus, the SC Guidelines and securities law; and (f) Require that the accounts be audited at least annually. The Trustee has covenanted in the Deed that it will exercise all due diligence and vigilance in carrying out its functions and duties, and in safeguarding the rights and interests of Unit Holders. Trustee’s Statement of Responsibility The Trustee has given its willingness to assume the position as Trustee of the Fund and all the obligations in accordance with the Deed, all relevant laws and rules of law. Trustee’s Declaration The Trustee is independent of the Manager. The Trustee will carry out transactions on an arm‟s length basis and on terms which are best available for the Fund, as well as act at all times in the best interest of the Fund‟s unitholders. The Trustee also has adequate procedures and processes in place to prevent or control conflict of interest. Trustee’s Delegate CITB has appointed CIMB Islamic Bank Berhad (CIMB Islamic Bank) as the Custodian of the Fund‟s assets. CIMB Islamic Bank's ultimate holding company is CIMB Group Holdings Berhad. a listed company in Bursa Malaysia and currently the second largest financial services provider in Malaysia. CIMB Islamic Bank provides full fledged custodial services, typically clearing settlement and safekeep all types of investment assets and classes, to a cross section of investors and intermediaries client base, both locally and overseas. For the local Ringgit assets, they are held through its wholly owned nominee subsidiary “CIMB Islamic Nominees (Tempatan) Sdn Bhd”. For foreign non-Ringgit assets, CIMB Islamic Bank appoints global custodian as its agent bank to clear, settle and safekeep on its behalf and to its order. The appointed global custodians are Citibank N. A, Singapore and BNP Paribas Securities Services, Singapore All investments are automatically registered in the name of the custodian to the order of the Trustee. CIMB Islamic Bank Berhad acts only in accordance with instructions from the Trustee. Libra Invest Berhad Master Prospectus 139 Material Litigation and Arbitration As at 10 February 2016, CITB 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 or any of its delegates. Trustee’s Obligation The Trustee‟s obligation in respect of monies paid by an investor for the application of units arises when the monies are received in the relevant account of the Trustee for the Funds and the Trustee‟s obligation is discharged once it has paid the redemption amount to the Manager. Libra Invest Berhad Master Prospectus 140 CIMB Commerce Trustee Berhad is the appointed Trustee for LREF, DividendEXTRA, LCLAF and LLF. Corporate Profile of the Trustee Name of Trustee : CIMB Commerce Trustee Berhad (“CCTB”) Registered Office : Level 13, Menara CIMB Jalan Stesen Sentral 2 Kuala Lumpur Sentral 50470 Kuala Lumpur Malaysia Date of Incorporation : 25 August 1994 Paid up Share Capital : Staff Strength : RM1,750,000 (350,000 ordinary shares of RM10 each and partly paid up RM 5 each) 25 executives as at 10 February 2016 Funds under Trusteeship Directors : 77 funds as at 10 February 2016 : Zahardin Omardin (Independent director & chairman, non-executive) Chan Swee Liang Carolina (Non-independent director, non-executive) Liew Pik Yoong (Non-independent director, executive) Chief Executive Officer : Liew Pik Yoong Financial Position The following is a summary of the past performance of CCTB based on audited accounts for the past three (3) financial years ended 31 December. 2014 Year Ended 31 December 2013 2012 RM’000 (RM’000) (RM’000) Paid-up Share Capital 1,750 1,750 1,750 Shareholders‟ funds Turnover Pre-tax Profit / (Loss) 10,375 9,872 5,692 11,739 8,502 4,216 8,600 7,917 2,596 After tax Profit / (Loss) 4,236 3,138 1,999 Experience in Trustee Business As at 10 February 2016, CCTB acts as trustee to one (1) real estate investment trust fund, fifty six (56) unit trust funds, one (1) private retirement scheme (consisting of five (5) funds) and fifteen (15) wholesale funds and has more than twenty (20) years of experience as trustee to unit trust funds. Key Personnel Liew Pik Yoong, Susan (Chief Executive Officer) Susan holds the position of CEO, Group Trustee Services in addition to her role as Head of Securities Services in CIMB. She joined CIMB in 2011 and has over 28 years experience in the financial market and securities industry. Prior to CIMB, she held various leadership roles such as Head/Director of Investors & Intermediaries, Head of Securities Services, Vice President/HOD with local foreign banks responsible for capital market products such as custody, nominees, unit trust, fund administration and share margin services. She was also previously Chief Operating Officer with a local foreign trustee company. Susan holds a professional degree from the Institute of Chartered Secretaries & Administrators (ICSA) Lee Kooi Yoke (Chief Operating Officer) Ms Lee holds a Bachelor Degree in Administration (Finance) from Griffith University, Australia and she is a member of both the Certified Practising Accountants (CPA) Australia and the Malaysia Institute of Accountant and Financial Planning Association Malaysia. She has more than 22 years of working experience in the financial industry. Prior to her current appointment, she headed the operations of a unit trust management company responsible for transfer agency, investment back-office, system and projects and retail and corporate agency operations. Also, prior to this position, she headed the investment operations of an established insurance company in Malaysia and Singapore. Libra Invest Berhad Master Prospectus 141 Roles, Duties & Responsibilities of the Trustee The Trustee‟s functions, duties and responsibilities are set out in the Deed. The general functions, duties and responsibilities of the Trustee include, but are not limited to, the following: (a) Take into custody the investments of the Fund and hold the investments in trust for the Unit Holders; (b) Ensure that the Manager operates and administers the Fund in accordance with the provisions of the Deed, SC Guidelines and acceptable business practice within the unit trust industry; (c) As soon as practicable notify the SC of any irregularity or breach of the provisions of the Deed, SC Guidelines and any other matters which in the Trustee's opinions may indicate that the interests of Unit Holders are not served; (d) Exercise reasonable diligence in carrying out its functions and duties, in actively monitoring the operations and management of the Fund by the Manager to safeguard the interests of Unit Holders; (e) Maintain, or cause the Manager to maintain, proper accounting records and other records as are necessary to enable a complete and accurate view of the Fund to be formed and to ensure that the Fund is operated and managed in accordance with the Deed of the Fund, Prospectus, the SC Guidelines and securities law; and (f) Require that the accounts be audited at least annually. The Trustee has covenanted in the Deed that it will exercise all due diligence and vigilance in carrying out its functions and duties, and in safeguarding the rights and interests of Unit Holders. Trustee’s Statement of Responsibility The Trustee has given its willingness to assume the position as Trustee of the Fund and all the obligations in accordance with the Deed, all relevant laws and rules of law. Trustee’s Declaration The Trustee is independent of the Manager. The Trustee will carry out transactions on an arm‟s length basis and on terms which are best available for the Fund, as well as act at all times in the best interest of the Fund‟s Unit Holders. The Trustee also has adequate procedures and processes in place to prevent or control conflicts of interest. Trustee’s Delegate CCTB appointed CIMB Bank Berhad (CIMB Bank) as the Custodian of the Fund‟s assets. CIMB Bank's ultimate holding company is CIMB Group Holdings Berhad, a listed company in Bursa Malaysia and currently the second largest financial services provider in Malaysia. CIMB Bank provides full fledged custodial services, typically clearing settlement and safekeeping all types of investment assets and classes, to a cross section of investors and intermediaries client base, both locally and overseas. For the local Ringgit assets, they are held through its wholly owned nominee subsidiary “CIMB Group Nominees (Tempatan) Sdn Bhd”. For foreign non-Ringgit assets, CIMB Bank appoints global custodian as its agent bank to clear, settle and safekeep on its behalf and to its order. The appointed global custodians are Citibank N. A, Singapore and BNP Paribas Securities Services, Singapore All investments are automatically registered in the name of the custodian to the order of the Trustee. CIMB Bank Berhad acts only in accordance with instructions from the Trustee. Material Litigation and Arbitration As at 10 February 2016, CCTB 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 or any of its delegates. Libra Invest Berhad Master Prospectus 142 Trustee’s Obligation The Trustee‟s obligation in respect of monies paid by an investor for the application of units arises when the monies are received in the relevant account of the Trustee for the Funds and the Trustee‟s obligation is discharged once it has paid the redemption amount to the Manager. Libra Invest Berhad Master Prospectus 143 16. SALIENT TERMS OF THE DEED Recognition of Unit Holders You shall be recognised as a Unit Holder when you are registered as the holder of units of the Funds. All Unit Holders are entitled to the benefit of, be bound by and be deemed to have notice of the provisions of the Deeds. Please be advised that if you invest in Units through an IUTA which adopts the nominee system of ownership, you would not be considered to be a Unit Holder under the Deed and you may, consequently, not have all the rights ordinarily exercisable by a Unit Holder (for example, the right to call for a Unit Holder’s Meeting and to vote thereat and the right to have your particulars appearing in the register of Unit Holders of the Fund). Rights Unit Holders will: Be entitled to receive distributions of income in accordance with the discretion of the Management Company in consultation with the Trustee; Be entitled to participate in any increase in the value of the units and such other rights and privileges provided for in the Deed; Be entitled to be informed of the respective Fund‟s performance by way of interim and annual reports; Be entitled to call for a Unit Holders‟ meeting, and vote for the removal of the Trustee or the Management Company through a Special Resolution; and Be entitled to exercise the cooling-off (if applicable). Liabilities Unit Holders will: Not be entitled to request for transfer to them of any assets held by the Fund or be entitled to interfere with the exercise by the Trustee or the Management Company on their behalf, of the rights of the Trustee as registered owner of such assets; Not be liable for any amount in excess of the purchase price paid for their units or for any charges payable in relation to those units; and Not be obligated to indemnify the Trustee and/or the Management Company in the event, that the liabilities incurred on behalf of the Fund exceed the net asset value of the Fund. Suspension and Deferrals Under the provisions of the Deed, the Trustee may suspend the sale or repurchase of Units in any such event where in the opinion of the Trustee: The interests of Unit Holders or potential Unit Holders would be materially affected if the sale and/or repurchased of Units were not suspended whereupon the Trustee shall immediately call a Unit Holders‟ meeting to decide on the next course of action; or The circumstances are exceptional, and there is good and sufficient reason to do so, in which case the period of suspension shall not exceed 21 days unless the consent of Unit Holders is received. Libra Invest Berhad Master Prospectus Maximum Fees and Charges Permitted by the Deed Fund Name Annual Management Annual Trustee Fee Fee % per annum of the Fund‟s NAV Repurchase Charge % of the NAV per Unit Sales Charge IncomeEXTRA 3.0 0.2 10 5 EquityEXTRA 3.0 0.2 10 5 DvidendEXTRA 3.0 0.2 (including local custodian fees and charges but excluding foreign custodian fees and charges) 10 5 BondEXTRA 3.0 0.2 10 5 MoneyEXTRA 3.0 0.2 10 5 Nil Nil 10 5 10 5 10 5 5 Nil 10 5 LLF 0.5 VersatileEXTRA 3.0 0.08 (subject to a minimum RM18,000 per annum calculated and accrued daily) (excluding foreign custodian fees and charges) 0.2 TacticalEXTRA 3.0 0.2 LCLAF 3.0 LREF 2.0 0.2 (subject to a minimum of RM18,000 per annum calculated and accrued daily, including local custodian fees and charges but excluding foreign custodian fees and charges) 0.1 (subject to a minimum of RM18,000 per annum before the deduction of the management fee and trustee fee for the relevant day excluding foreign custodian fees and charges) ASnitaBOND 3.0 0.2 (including local custodian fees and charges) ASnita 2.0 0.3 (subject to a minimum RM50,000 per annum) 10 5 SyariahEXTRA 1.5 0.1 10 5 LSLF Series 2 0.3 0.02 Nil Nil 144 Libra Invest Berhad Master Prospectus 145 Procedures to Increase the Direct Charges and Indirect Fees Sales Charge The Management Company may not charge a sales charge at a rate higher than that disclosed in this Master Prospectus unless: a) the Management Company has notified the Trustee in writing of and the effective date for the higher charge; b) a supplemental / replacement prospectus stating the higher charge is issued; and c) thirty (30) days have elapsed since the effective date of the supplemental / replacement prospectus. Repurchase Charge The Management Company may not charge a repurchase charge at a rate higher than that disclosed in this Master Prospectus unless: a) the Management Company has notified the Trustee in writing of and the effective date for the higher charge; b) a supplemental / replacement prospectus in stating the higher charge is issued; and c) thirty (30) days have elapsed since the effective date of the supplemental / replacement prospectus. Annual Management Fee The Management Company may not charge an annual management fee at a rate higher than that disclosed in this Master Prospectus unless: a) the Management Company has come to an agreement with the Trustee on the higher rate; b) the Management Company has notified the Unit Holders of the higher rate and the date on which such higher rate is to become effective; such time as may be prescribed by any relevant law shall have lapsed since the notice is sent; c) a supplemental / replacement prospectus stating the higher rate is issued thereafter; and d) ninety (90) days have elapsed since the supplemental / replacement prospectus is issued. Annual Trustee Fee The Trustees may not charge an annual trustee fee at a rate higher than that disclosed in this Master Prospectus unless: a) the Management Company has come to an agreement with the Trustee on the higher rate; b) the Management Company has notified the Unit Holders of the higher rate and the date on which such higher rate is to become effective; such time as may be prescribed by any relevant law shall have lapsed since the notice is sent; and c) a supplemental / replacement prospectus stating the higher rate is issued thereafter; and d) ninety (90) days have elapsed since the supplemental / replacement prospectus is issued. Procedures to Increase the Maximum Rate of Direct Charges and Indirect Fees in the Deed The maximum sales charge, repurchase charge, annual management fee or annual trustee fee set out in the Deed can only be increased if a Unit Holders‟ meeting has been held in accordance with the Deed. Thereafter, a supplemental deed proposing a modification to the Deed to increase the aforesaid charges and fees is required to be submitted for registration with the SC accompanied by a resolution of not less than two-thirds (2/3) of all Unit Holders presents and voting at the Unit Holders‟ meeting sanctioning the proposed modification to the Deed. Libra Invest Berhad Master Prospectus 146 Permitted Expenses Payable by the Funds Only the expenses (or part thereof) which is 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) b) c) d) e) f) g) h) i) j) k) l) m) n) o) p) q) commissions/fees paid to brokers/dealers in effecting dealings in the investments of the Fund, shown on the contract notes or confirmation notes; taxes and other duties charged on the Fund by the government and/or other authorities; costs, fees and expenses properly incurred by the auditor; costs, fees and expenses incurred for the valuation of any investment of the Fund by independent valuers for the benefit of the Fund; costs, fees and expenses incurred for any modification of this Deed save the where such modification is for the benefit of the Management Company and/or the Trustee; costs, fees and expenses incurred for any meeting of Unit Holders save where such meeting is convened for the benefit of the Management Company and/or the Trustee; costs, commissions, fees and expenses of the sale, purchase, insurance/takaful and any other dealing of any asset of the Fund; costs, fees and expenses incurred in engaging any specialist approved by the Trustee for investigating or evaluating any proposed investment of the Fund; costs, fees and expenses incurred in engaging any valuer, adviser or contractor for the benefit of the Fund; costs, fees and expenses incurred in the preparation and audit of the taxation, returns and accounts of the Fund; costs, fees and expenses incurred in the termination of the Fund or the removal of the Trustee or the Management Company and the appointment of a new trustee or management company; 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 Management Company 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); remuneration and out of pocket expenses of the independent members of the investment committee of the Fund, unless the Management Company decides otherwise; costs, fees and expenses deemed by the Mangement Company 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; cost and expenses incurred in relation to the distribution of income (if any); *(where the custodial function is delegated by the Trustee) charges and fees paid to sub-custodians taking into custody any foreign assets of the Fund; and *cost and fees for the printing and posting of the interim reports and annual reports for the Fund. *Note : These additional permitted expenses are applicable for LSLF Series 2 only. Removal, Replacement, and Retirement of the Management Company and Trustee Removal or Replacement of the Management Company The Trustee shall take all reasonable steps to remove the Management Company if the Management Company: a) b) c) d) e) f) 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 Management Company 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; 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 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. Libra Invest Berhad Master Prospectus 147 Retirement of the Management Company The Management Company shall have the power to retire in favour of some other corporation by giving to the Trustee three (3) months‟ (or such other period as the Management Company and the Trustee may agree upon) notice in writing of its desire so to do, provided such retirement is approved by the relevant authorities and the retirement is in accordance with the conditions under the Deed. Removal or Replacement of the Trustee The Trustee may be removed and such corporation may be appointed as Trustee of the Fund by Special Resolution of the Unit Holders at a duly convened meeting. The Management Company shall take all reasonable steps to replace the Trustee as soon as practicable after becoming aware that: a) b) c) d) e) f) g) the Trustee has ceased to exist; or the Trustee has not been validly appointed; or the Trustee was not eligible to be appointed or to act as Trustee under any relevant law; or the Trustee has failed or refused to act as Trustee in accordance with the provisions or covenants of the Deed or any relevant law; or a receiver has been appointed over the whole or a substantial part of the assets or undertaking of the Trustee and has not ceased to act under that appointment; or a petition has been 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 insolvent); or the Trustee is under investigation for conduct that contravenes the Trust Companies Act 1949, the Trustee Act 1949, the Companies Act 1965 or any relevant law. Retirement of the Trustee The Trustee may retire upon giving three (3) months‟ (or such other period as the Management Company and the Trustee may agree upon) notice in writing to the Management Company of its desire so to do, provided such retirement is approved by the relevant authorities and the retirement is in accordance with the conditions under the Deed. Termination of the Fund The duration of the Trust is indeterminate. However, the Deed provides for certain circumstances under which the Trust may be terminated. The Fund may be terminated or wound up upon the occurrence of any of the following events: a) b) c) d) e) The SC‟s approval is revoked under section 256E of the CMSA; A Special Resolution is passed at a Unit Holders‟ meeting to terminate or wind up the Fund, following occurrence of events stipulated under section 30(1) of the CMSA and the court has confirmed the resolution, as required under section 301(2) of the CMSA; A Special Resolution is passed at a Unit Holders‟ meeting to terminate or wind up the Fund; The Fund has reached its maturity date as specified in the Deed; and The effective date of an approved transfer scheme has resulted in the Fund, which is the subject of the transfer scheme, being left with no asset/property. Provisions governing Unit Holders’ Meetings 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 Management Company 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. Libra Invest Berhad Master Prospectus 148 Meetings directed by Unit Holders Unless otherwise required or allowed by the relevant laws, the Management Company shall, within twenty-one (21) days of receiving a direction from not less than fifty (50) or one-tenth (1/10) of Unit Holders at the registered office of the Management Company, summon a meeting of the Unit Holders by: (a) (b) (c) 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; publishing at least fourteen (14) days before the date of the proposed meeting an advertisement giving notice of the proposed meeting in a national language newspaper published daily and another newspaper approved by the relevant authorities; and specifying in the notice the place and time of the meeting and the terms of the resolutions to be proposed at the meeting. The Unit Holders may direct the Management Company to summon a meeting for any purpose including, without limitation, for the purpose of: (a) (b) (c) (d) (e) requiring the retirement or removal of the Management Company; requiring the retirement or removal of the Trustee; considering the most recent financial statements of the Fund; giving to the Trustee such directions as the meeting thinks proper; or considering any matter in relation to the Deed. provided always that the Management Company shall not be obliged to summon such a meeting unless direction has been received from not less than fifty (50) or one-tenth (1/10) of all the Unit Holders. Unit Holders meeting convened by the Management Company Unless otherwise required or allowed by the relevant laws and the Deed, we may convene a Unit Holders‟ meeting by giving Unit Holders‟ at least fourteen (14) days written notice specifying the place, time and terms of the resolutions to be proposed. Unit Holders meeting convened by the Trustee The Trustee may convene a Unit Holders‟ meeting by giving Unit Holders‟ at least fourteen (14) days written notice specifying the place, time and terms of the resolution to be proposed for any purpose including, without limitation, for the purpose of: (a) (b) (c) (d) (e) requiring the retirement or removal of the Management Company; giving instructions to the Trustee or the Manager if the Trustee considers that the investment management policies of the Management Company are not in the interests of Unit Holders; securing the agreement of the Unit Holders to release the Trustee from any liability; deciding on the next course of action after the Trustee has suspended the sale and repurchase of Units; and deciding on the reasonableness of the annual management fee charged to the Fund. In the circumstances where: (a) the Management Company is in liquidation; (b) in the opinion of the Trustee, the Management Company has ceased to carry on business, or (c) in the opinion of the Trustee, the Management Company has, to the prejudice of Unit Holders, failed to comply with the Deed or contravened any of the provisions of the Act. The Trustee shall summon a Unit Holders‟ meeting by sending by post a notice of the proposed meeting to the Unit Holders at least twenty-one (21) days before the date of the proposed meeting; and publishing at least twenty-one (21) days before the date of the proposed meeting an advertisement giving notice of the meeting in a national language newspaper published daily and another newspaper permitted by the relevant authorities. Libra Invest Berhad Master Prospectus 149 17. APPROVALS AND CONDITIONS Variations and Exemptions from SC Guidelines We have obtained the approval from the SC for certain variations and exemptions from the SC‟s Guidelines for EquityEXTRA Fund. EquityEXTRA EquityEXTRA has been allowed a variation to Clause 10.3.3(c) of the Guidelines issued in 1997 which states that the value of the Fund‟s holding of unlisted securities must not exceed 10% of the Fund‟s NAV. The Fund is allowed to invest up to 50% of the NAV of the Fund only in unlisted bonds and fixed income securities as well as commercial papers traded in the money market. Libra Invest Berhad Master Prospectus 150 18. RELATED – PARTY TRANSACTIONS AND CONFLICT OF INTEREST Related-Party Transactions The Management Company may from time to time transact through a broker related to it. Transactions with related stock broking company will be entered into in the normal course of business and on terms and conditions that are not materially different from that obtainable in transactions with unrelated parties. The dealings with the related party will be transacted at arm‟s length basis. As at 10 February 2016, none of LIB‟s directors and substantial shareholders has any direct or indirect interest in other corporations carrying on a similar business as LIB. Policy on Conflict of Interest In the course of managing a Fund, the Management Company may face conflicts of interest in respect of its respective duties to the Fund and duties to other unit trust funds under its management. In such an event, the Management Company is obliged to act in the best interest of all the investors and will seek to resolve any conflict of interest in accordance with the Deeds. LIB has formulated a Code of Conduct for the Investment Committee Member in the following areas: to avoid any actual or potential conflict of interest; to avoid misuse of position of trust; to prevent misuse of inside information; and to ensure fair treatment of Unit Holders of the Funds. The code of conduct aims to prevent any conflicts of interest arising from an investment committee member‟s or LIB‟s private fund management practice and the Funds‟ investment activities. Trading in securities by the employees, investment committee members and directors of LIB is allowed, provided that policies and procedures in respect of the personal account dealing are observed. Further, all employees are also required to disclose their portfolio holdings and transactions on dealings to the Management Company. Maybank Trustees Berhad As Trustee for the Funds, Maybank Trustees Berhad (MTB) confirms to the best of its knowledge that it does not have any related party transactions with the Funds (RPT Transactions). However should there be any, MTB will ensure compliance with the relevant regulatory requirements and its internal procedures on RPT Transactions. CIMB Islamic Trustee Berhad Related-Party Transactions/ Conflict of Interest CIMB Islamic Trustee Berhad is the Trustee of the Funds, where applicable there may be proposed related party transactions and/or conflict of interest involving or in connection with the Fund in the following events: (a) (b) (c) where the Funds invest in instrument(s) offered by CIMB Group; where the Funds being distributed by CIMB Group as IUTA; and where the assets of the Funds are being custodised by the CIMB Group both as custodian of the Funds (i.e.Trustee‟s delegate). 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 legal registered owner of the Fund's assets to gain, directly or indirectly, and advantage or cause detriment to the interest of the Unit Holders. Libra Invest Berhad Master Prospectus 151 CIMB Commerce Trustee Berhad Related-Party Transactions/ Conflict of Interest CIMB Commerce Trustee Berhad is the Trustee of the Funds, where applicable there may be proposed related party transactions and/or conflict of interest involving or in connection with the Fund in the following events: (a) (b) (c) where the Funds invest in instrument(s) offered by CIMB Group; where the Funds being distribute by CIMB Group as IUTA; and where the assets of the Funds are being custodised by the CIMB Group both as sub-custodian of the Funds (i.e. Trustee's delegate). 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 legal registered owner of the Fund's assets to gain, directly or indirectly, and advantage or cause detriment to the interest of the Unit holders. Libra Invest Berhad Master Prospectus 152 19. TAXATION ADVISER’S LETTER ON TAXATION OF THE FUNDS AND UNIT HOLDERS (Prepared for inclusion in this Master Prospectus) PricewaterhouseCoopers Taxation Services Sdn Bhd Level 10, 1 Sentral, Jalan Travers Kuala Lumpur Sentral P.O.Box 10192 50706 Kuala Lumpur The Board of Directors Libra Invest Berhad Ground Floor Bangunan ECM Libra 8 Jalan Damansara Endah Damansara Heights 50490 Kuala Lumpur 29 February 2016 TAXATION OF THE FUNDS OFFERED UNDER THE MASTER PROSPECTUS AND UNIT HOLDERS Dear Sirs, This letter has been prepared for inclusion in the Master Prospectus dated 18 March 2016 and expires on 17 March in connection with the offer of units in Libra IncomeEXTRA Fund, Libra EquityEXTRA Fund, Libra BondEXTRA Fund, MoneyEXTRA Fund, Libra VersatileEXTRA Fund, Libra DividendEXTRA Fund, Libra TacticalEXTRA Fund, Consumer and Leisure Asia Fund, Libra Liquidity Fund, Libra Resource Equity Fund, Libra SyariahEXTRA Fund, Amanah Saham Wanita, Libra ASnitaBOND Fund and Libra Shariah Liquidity Fund Series 2 (“the Funds”). 2017 Libra Libra Libra The taxation of income for both the Funds and the Unit holders are subject to the provisions of the Malaysian Income Tax Act 1967 (“the Act”). The applicable provisions are contained in Section 61 of the Act, which deals specifically with the taxation of trust bodies in Malaysia. TAXATION OF THE FUNDS The Funds will be regarded as resident for Malaysian tax purposes since the Trustee of the Funds are resident in Malaysia. (1) Domestic Investments (i) General Taxation Subject to certain exemptions, the income of the Funds consisting of dividends, interest (other than interest which is exempt from tax) and other investment income derived from or accruing in Malaysia, after deducting tax allowable expenses, is liable to Malaysian income tax at the rate of 24 per cent. Gains on disposal of investments in Malaysia by the Funds will not be subject to income tax. (ii) Dividends and Other Exempt Income Effective 1 January 2014, all companies would adopt the single-tier system. Hence, dividends received would be exempted from tax and the deductibility of expenses incurred against such dividend income would be disregarded. There will no longer be any tax refunds available for single- tier dividends received. Dividends received from companies under the single-tier system would be exempted. The Funds may receive Malaysian dividends which are tax exempt. The exempt dividends may be received from investments in companies which had previously enjoyed or are currently enjoying the various tax incentives provided under the law. The Funds will not be taxable on such exempt income. Interest or discount income derived from the following investments is exempt from tax: (a) Securities or bonds issued or guaranteed by the government; 1 2 (b) Debentures or sukuk , other than convertible loan stocks, approved or authorized by, or lodged with, the Securities 3 Commission Malaysia; and (c) Bon Simpanan Malaysia issued by Bank Negara Malaysia. Libra Invest Berhad Master Prospectus 153 Interest income derived from the following investments is exempt from tax: (a) (b) (c) Interest paid or credited by any bank or financial institution licensed under the Financial Services Act 2013 or Islamic Financial Services Act 2013 with effect from 30 June 2013; Interest paid or credited by any development financial institution regulated under the Development Financial Institutions Act 2002 with effect from year of assessment (“YA”) 2015; and Bonds, other than convertible loan stocks, paid or credited by any company listed in Bursa Malaysia Securities Berhad ACE Market. The income exempted from tax at the Fund‟s level will also be exempted from tax upon distribution to the Unit holders. (2) Foreign Investments Income of the Funds in respect of income received from overseas investment is exempt from Malaysian tax by virtue of Paragraph 28 of Schedule 6, of the Act and distributions from such income will be tax exempt in the hands of the Unit holders. Such income from foreign investments may be subject to foreign taxes or withholding taxes. Any foreign tax suffered on the income in respect of overseas investment is not tax refundable to the Funds. The foreign income exempted from Malaysian tax at the Funds level will also be exempted from tax upon distribution to the Unit holders. (3) Hedging Instruments The tax treatment of hedging instruments would depend on the particular hedging instruments entered into. Generally, any gain / loss relating to the principal portion will be treated as capital gain / loss. Gains / losses relating to the income portion would normally be treated as revenue gains / losses. The gain / loss on revaluation will only be taxed or claimed upon realisation. Any gain / loss on foreign exchange is treated as capital gain / loss if it arises from the revaluation of the principal portion of the investment. (4) Tax Deductible Expenses Expenses wholly and exclusively incurred in the production of gross income are allowable as deductions under Section 33(1) of the Act. In addition, Section 63B of the Act provides for tax deduction in respect of managers‟ remuneration, expenses on maintenance of the register of unit holders, share registration expenses, secretarial, audit and accounting fees, telephone charges, printing and stationery costs and postages based on a formula subject to a minimum of 10 per cent and a maximum of 25 per cent of the expenses. (5) Real Property Gains Tax With effect from 1 January 2014, any gains on disposal of real properties (“chargeable asset”) or shares in real property 4 companies (“chargeable asset”) would be subject to RPGT as follows:Disposal time frame Within 3 years In the 4th year In the 5th year In the 6th year and subsequent years (6) RPGT rates 30% 20% 15% 5% Goods and Services Tax (“GST”) GST has been implemented since 1 April 2015 at the rate of 6% to replace the existing sales tax and service tax. 5 Based on the draft guidelines issued, the Funds, being collective investment vehicle, will be making exempt supplies. Hence, the Funds are not required to be registered for GST purposes. However, the Funds will incur expenses such as management fees, trustee fees and other administrative charges which will be subject to 6% GST. The 6% input tax incurred on such expenses will not be claimable by the Funds and represents a cost to the Funds. TAXATION OF UNIT HOLDERS Unit holders will be taxed on an amount equivalent to their share of the total taxable income of the Funds to the extent of the distributions received from the Funds. The income distribution from the Funds will carry a tax credit in respect of the Malaysian tax paid by the Funds. Unit holders will be entitled to utilise the tax credit against the tax payable on the income distribution received by them. No additional withholding tax will be imposed on the income distribution from the Funds. 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 treaty with Malaysia, the Malaysian tax suffered may be creditable in the foreign tax jurisdictions. 6 Corporate Unit holders, resident and non-resident, will generally be liable to income tax at 24 per cent on distribution of income received from the Funds. The tax credits attributable to the distribution of income can be utilised against the tax liabilities of these Unit holders. Libra Invest Berhad Master Prospectus 154 Individuals and other non-corporate Unit holders who are tax resident in Malaysia will be subject to income tax at 7 graduated rates ranging from 1 per cent to 28 per cent. Individuals and other non-corporate Unit holders who are not 8 resident in Malaysia will be subject to income tax at 28 per cent. The distribution of exempt income and gains arising from the disposal of investments by the Funds will be exempted from tax in the hands of the Unit holders. Any gains realised by Unit holders (other than those in the business of dealing in securities, insurance companies or financial institutions) on the sale or redemption of the units are treated as capital gains and will not be subject to income tax. This tax treatment will include in the form of cash or residual distribution in the event of the winding up of the Funds. Unit holders electing to receive their income distribution by way of investment in the form of new units will be regarded as having purchased the new units out of their income distribution after tax. Unit splits issued by the Funds are not taxable in the hands of Unit holders. The issuance of units by the Funds is an exempt supply. The selling or redemption of the units is also an exempt supply and therefore is not subject to GST. Any fee based charges related to buying of the units such as sales or service charge or switching fees will be subject to GST at a standard rate of 6%. We hereby confirm that the statements made in this report correctly reflect our understanding of the tax position under current Malaysian tax legislation. Our comments above are general in nature and cover taxation in the context of Malaysian tax legislation only and do not cover foreign tax legislation. The comments do not represent specific tax advice to any investors and we recommend that investors obtain independent advice on the tax issues associated with their investments in the Funds. Yours faithfully, for and on behalf of PRICEWATERHOUSECOOPERS TAXATION SERVICES SDN BHD Lim Phaik Hoon Senior Executive Director PricewaterhouseCoopers Taxation Services Sdn Bhd have given their written consent to the inclusion of their report as taxation adviser in the form and context in which it appears in this Master Prospectus and have not, before the date of issue of the Master Prospectus, withdrawn such consent. 1 Structured products approved by the Securities Commission Malaysia are deemed to be “debenture” under the Capital Markets and Services Act, 2007 and fall within the scope of exemption. 2 Persuant to the Finance Act 2015 which was gazetted on 30 December 2015, the words “Islamic Securities” were substituted with the words “sukuk”. 3 Persuant to the Finance Act 2015 which was gazette on 30 December 2015, the words “approved by the Securities Commission” were substituted with the words “approved or authorized by, or lodge with, the Securities Commission”. 4 A real property company is a controlled company which owns or acquires real property or shares in real property companies with a market value of not less than 75 per cent of its total tangible assets. A controlled company is a company which does not have more than 50 members and is controlled by not more than 5 persons. 5 Pursuant to Goods And Services Tax Guide on Fund Management (draft as at 27 October 2013) issued by the Royal Malaysian Customs. 6 Resident companies with paid up capital in respect of ordinary shares of RM2.5 million and below will pay tax at 19 per cent for the first RM500,000 of chargeable income with the balance taxed at 24 per cent. With effect from year of assessment (“YA”) 2009, the above shall not apply if more than – (a) (b) (c) 50 per cent of the paid up capital in respect of ordinary shares of the company is directly or indirectly owned by a related company; 50 per cent of the paid up capital in respect of ordinary shares of the related company is directly or indirectly owned by the first mentioned company; 50 per cent of the paid up capital in respect of ordinary shares of the first mentioned company and the related company is directly or indirectly owned by another company. “Related company” means a company which has a paid up capital in respect of ordinary shares of more than RM2.5 million at the beginning of the basis period for a year of assessment (“YA”). 7 Pursuant to the Finance Act 2015 which was gazetted on 30 December 2015, the income tax rates for individual tax residents in Malaysia will be increased to rates ranging from 1 to 28 per cent effective YA 2016. 8 Pursuant to the Finance Act 2015 which was gazetted on 30 December 2015, the income tax rate for non-resident individuals will be increased to 28 per cent effective YA 2016. Libra Invest Berhad Master Prospectus 20. ADDITIONAL INFORMATION Investors Services FOR MORE INFORMATION ON: The Fund‟s NAV per Unit Investment details Liquidation details Call us during our office hours at: 03-2089 1883 (Head Office) 07-332 2148 (Johor Bahru) Monday to Friday: 8.30 a.m. to 5.30 p.m. (3.30 p.m cut-off time for unit transactions) Or visit our website or send an e-mail to us at: Website : www.librainvest.com E-mail : [email protected] In addition, the NAV per Unit is also available at: Manager‟s website EVERY INVESTOR WILL BE PROVIDED WITH: Investment confirmation e.g. Units holding, NAV, payment details Details of income distribution Unaudited half-yearly interim report Audited annual report e.g. Income distribution(if any) quarterly/ monthly/ half yearly/ annually/ incidental e.g. Market review & outlook, Funds performance e.g. Market review & outlook, Funds performance 155 Libra Invest Berhad Master Prospectus 156 21. CONSENTS The Trustees, auditor, Shariah Adviser, solicitors and principal bankers have given their written consent to the inclusion in this Master Prospectus of their names in the form and context in which such names appear and have not, before the date of issue of this Master Prospectus withdrawn their consents. The tax adviser has given their written consent to the inclusion of the tax adviser‟s letter in the form and context in which it appears in this Master Prospectus and has not withdrawn such consent before the date of issue of this Master Prospectus. 22. JURISDICTION The offering of Units or the distribution of this Master Prospectus, in any jurisdiction where action would be required for such purpose, is not permitted outside Malaysia. Accordingly, this Master Prospectus may not be used for the purpose of a solicitation or offer in any jurisdiction or in any circumstances in which such solicitation and offer is unauthorized. 23. DOCUMENTS AVAILABLE FOR INSPECTION The following documents or copies thereof or other documents as may be required by the SC will be available for inspection (without charge) for a period of not less than 12 months from the date of this Master Prospectus during normal business hours at the registered office of the Management Company, where applicable: The Deed of the Funds; Latest annual an interim reports of the Funds; Each material contract disclosed in the Prospectus and, in the case of contracts not reduced into writing, a memorandum which gives full particulars of the contracts; The audited financial statements of the Funds for the current financial year (where applicable) and the last three (3) financial years or if the Funds have been established/incorporated for a period of less than three (3) years, the entire period preceding the date of this Prospectus; All reports, letters or other documents, valuations and statements by any expert, any part of which is extracted or referred to in the Prospectus. Where a summary expert‟s report is included in the Prospectus, the corresponding full expert‟s report should be made available for inspection; Writ and relevant cause papers for all current material litigation and arbitration disclosed in the Prospectus; and All consents given by experts disclosed in this Master Prospectus. 24. DIRECTORS’ RESPONSIBILITY STATEMENT This Master Prospectus dated 18 March 2016 has been reviewed and approved by the directors of Libra Invest Berhad and they collectively and individually accept full responsibility for the accuracy of the information. Having made all reasonable enquires, they confirm to the best of their knowledge and belief, that there are no false or misleading statements, or omission of other facts which would make any statement in this Master Prospectus dated 18 March 2016 false or misleading. Datuk Kamarudin bin Md Ali (Chairman & Independent Non-Executive Director) Khairudin bin Ibrahim (Independent Non-Executive Director) Mahadzir bin Azizan (Independent Non-Executive Director) Gareth Lim Tze Xiang (Non-Independent Non-Executive Director) Lee Wei Chung (Chief Executive Officer & Non-Independent Executive Director) Libra Invest Berhad Master Prospectus 25. COMPANY DIRECTORY HEAD OFFICE Ground Floor Bangunan ECM Libra 8 Jalan Damansara Endah Damansara Heights 50490 Kuala Lumpur General Line: 603-2089 1888 Investor Care Line: 603-2089 1883 Fax: 603-2096 1020 / 603-2096 1662 JOHOR – JOHOR BAHRU No. 105 Jalan Meranti Merah Taman Melodies 80250 Johor Bahru, Johor Tel: 607-332 2148 Fax: 607-335 0426 AUTHORISED DISTRIBUTORS: Kenanga Investment Bank Berhad 8th Floor, Kenanga International Jalan Sultan Ismail 50250 Kuala Lumpur Tel: 603-2164 9080 Fax: 603-2161 4990 Phillip Mutual Berhad B-2-7, Megan Avenue II No. 12, Jalan Yap Kwan Seng 50450 Kuala Lumpur Tel: 603-2783 0300 Fax: 603-2711 3036 iFAST Capital Sdn Bhd Level 28, Menara Standard Chartered No. 30 Jalan Sultan Ismail 50250 Kuala Lumpur Tel: 603-2149 0660 Fax: 603-2143 1218 157 Libra Invest Berhad Master Prospectus This page is intentionally left blank. 158 Libra Invest Berhad Master Prospectus This page is intentionally left blank. 159 L O A N F IN A N CIN G R ISK D IS CL OSU R E ST A T E M EN T 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, attitude to risk and financial circumstances. You should be aware of the risks, which would include the following: 1. 2. 3. 4. The higher the margin of financing (that is, the amount of money you borrow for every ringgit of your own money which you put in as deposit or down payment), the greater the loss or gain in your investment. 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. If unit prices fall beyond a certain level, you may be asked to provide additional acceptable collateral (where units are used as collateral) or pay additional amounts on top of your normal installments. If you fail to comply within the time prescribed, your units may be sold towards the settlement of your loan. 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. 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. 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 a loan. If you are in doubt about any aspect of this risk disclosure statement or the terms of the loan financing, you should consult the institution offering the loan. Shariahcompliance unit trust fund’s investor is advised to seek for Islamic financing to finance their acquisition. 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 : ________________________________________________ T E R M S A N D CO N DIT IO N S 1. Application and Remittance Payment may be made by tegraphic transfer, cheques or cashier’s order. All cheques / cashier’s order must be made payable to Libra Invest Berhad and crossed ‘Account Payee Only’. Please ensure that the applicant’s name, holder no. (if known) and contact no. are written on the reverse side of the cheque or cashier’s order. A copy of the bank-in slip / banking evidence must be sent together with the Investment Form directly to the Management Company. Please ensure that the applicant’s name, holder no. (if known) and contact no. are written on the reverse side of the bank-in slip / banking evidence. Units will be priced at NAV based on the date of receipt of the duly completed Investment Form by the Management Company. Units will be credited upon clearance of payment. 2. Right of the Management Company The Management Company reserves the right to reject any application in whole or in part without assigning any reason. Rejected applicants will be notified and the Management Company will refund their money within 14 days from the date of receipt of the Investment Form. Payment will be made to the Applicant’s/ Holder’s name by a crossed cheque. All future terms and conditions, amendments are deemed to be valid. 3. Issuance of Official Receipt and Statement of Accounts A confirmation note will be issued to Holders within 14 business days from the date of investment. Statement of Accounts detailing all active accounts will be issued to Holders periodically. All correspondence will be directed to the Principal Holder at the last known address. All items and balances shown in the confirmation notes and Statement of Accounts will be considered correct unless the Management Company is notified in writing of any discrepancy within 14 days from the date of the confirmation notes and Statement of Accounts. 4. Future Transactions and Payments The Management Company upon evidence of receipt of money will process all investments without verifying the source of remittance. To protect your interest as a Holder, you must fill up an Investment Form when making investments and attach it with your payment. All investments and transactions will be carried out according to the instructions of authorised signatory specified in the Holder Account Opening Form or any subsequent written notice duly received by the Management Company. Transactions are subject to the availability of units of the Fund. Should there be any additional investment not accompanied by an instruction for allocation into the appropriate Funds, the Management Company shall have the right to allocate the said investment according to the manner specified in the Investment Form for the initial investment or any subsequent written notice duly received by the Management Company. For any allocation of investment into a particular fund below the minimum investment required, the Management Company reserves the right to reject or rectify the said investment allocation in order to comply with the minimum requirement. For lump sum investment with deferred entry fee, the deduction of chargeable entry fee from the account in the form of units will be done automatically every calendar quarter. No advice will be issued. The chargeable entry fee will be deducted from units of a fixed income fund or from units of the larger fund in terms of market value at Management Company’s discretion. 5. Liquidation of Units and Cooling-Off Holders may liquidate their units by filling up the Liquidation Form and forwarding the duly signed original form to the business address of the Management Company or its appointed distributors. Units shall be liquidated based on the NAV calculated at the end of the business day upon receipt of a duly completed Liquidation Form by the Management Company. To protect the interests of the Holders, the Management Company is unable to make payments to third parties. Unless otherwise specified, all payments will be made to the Principal Holder only. Liquidation proceeds may be credited directly to the Holder’s bank account. If other modes of payment are selected, kindly allow sufficient time for the cheques to reach the Holders and/or for the funds to clear. A Cooling-Off period of 6 business days from the date of application for units is provided for the Holder to confirm the initial investment. This right is not applicable for subsequent investments of the Holder and is not extended to corporate/institutional investors, investors who are staff/distributors of the Management Company or investors who invest under the EPF Members’ Investment Scheme. 6. Pre-Qualification Declaration An individual whose total net personal assets, or total net joint assets with his or her spouse, exceed RM3 million or its equivalent in foreign currencies, excluding the value of the individual’s primary residence; an individual who has a gross annual income exceeding RM300,000 or its equivalent in foreign currencies per annum in the preceding 12 months; an individual who, jointly with his or her spouse, has a gross annual income exceeding RM400,000 or its equivalent in foreign currencies in the preceding 12 months; a corporation with total net assets exceeding RM10 million or its equivalent in foreign currencies based on the last audited accounts; a partnership with total net assets exceeding RM10 million or its equivalent in foreign currencies; a unit trust scheme or prescribed investment scheme; a private retirement scheme; a closed-end fund; a company that is registered as a trust company under the Trust Companies Act 1949 which has assets under management exceeding RM10 million or its equivalent in foreign currencies; a corporation that is a public company under the Companies Act 1965 which is approved by the SC to be a trustee under the Act and has assets under management exceeding RM10 million ringgit or its equivalent in foreign currencies; a statutory body established by an Act of Parliament or an enactment of any State; a pension fund approved by the Director General of Inland Revenue under section 150 of the Income Tax Act 1967; a holder of a Capital Markets Services Licence; a licensed institution; Islamic bank; an insurance company licensed under the Financial Services Act 2013; a takaful operator registered under the Islamic Financial Services Act 2013; a bank licensee or insurance licensee as defined under the Labuan Financial Services and Securities Act 2010; and an Islamic bank licensee or takaful licensee as defined under the Labuan Islamic Financial Services and Securities Act 2010. Please note that this Declaration is not the only term relating to investments into a Wholesale Fund. Investors are advised to read and understand the Information Memorandum and Supplemental Information Memorandum(s) (if any) for additional terms including but not limited to, minimum initial and subsequent investment amount. Libra Invest Berhad (361207-D) (A member of the ECM Libra Group) Gound Floor Bangunan ECM Libra 8 Jalan Damansara Endah Damansara Heights 50490 Kuala Lumpur General Line: 603-2089 1888 Investor Care Line: 603-2089 1883 Fax: 603-2096 1020 / 603-2096 1662 e-mail: [email protected] www.librainvest.com