MAYBANK INSTITUTIONAL CASH FUND (THE FUND )

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1 MAYBANK INSTITUTIONAL CASH FUND (THE FUND ) RESPONSIBILITY STATEMENT This Product Highlights Sheet has been reviewed and approved by the directors of Maybank Asset Management Sdn Bhd and they collectively and individually accept full responsibility for the accuracy of the information. Having made all reasonable inquiries, they confirm to the best of their knowledge and belief, there are no false or misleading statements, or omission of other facts which would make any statement in the Product Highlights Sheet false or misleading. STATEMENT OF DISCLAIMER The Securities Commission Malaysia has authorised the issuance of the Maybank Institutional Cash Fund and a copy of this Product Highlights Sheet has been lodged with the Securities Commission Malaysia. The authorisation of the Maybank Institutional Cash Fund and lodgement of this Product Highlights Sheet, should not be taken to indicate that the Securities Commission Malaysia recommends the Maybank Institutional Cash Fund or assumes responsibility for the correctness of any statement made or opinion or report expressed in this Product Highlights Sheet. The Securities Commission Malaysia is not liable for any non-disclosure on the part of Maybank Asset Management Sdn Bhd responsible for the Maybank Institutional Cash Fund and takes no responsibility for the contents of this Product Highlights Sheet. The Securities Commission Malaysia makes no representation on the accuracy or completeness of this Product Highlights Sheet, and expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of its contents.

2 This Product Highlights Sheet only highlights the key features and risks of the Maybank Institutional Cash Fund. Investors are advised to request, read and understand the disclosure documents before deciding to invest. PRODUCT HIGHLIGHTS SHEET MAYBANK INSTITUTIONAL CASH FUND (THE FUND ) 1. What is this fund about? BRIEF INFORMATION ON THE FUND The Fund is a money market fund that aims to provide institutional investors with capital preservation, daily liquidity and income by way of distribution on a monthly basis to investors. 2. Who is this fund suitable for? FUND SUITABILITY PRODUCT SUITABILITY This Fund is suitable for Institutional Qualified Investors* who seek capital preservation upon their investments, daily liquidity and a regular income stream. * Please refer to the definition of Qualified Investors under Item 40. in the information memorandum for more details. 3. What am I investing in? KEY PRODUCT FEATURES EATES Investment objective The Fund aims to provide investors with capital preservation*, daily liquidity** and income***. Note: * The Fund is not a capital guaranteed fund or a capital protected fund. ** Daily liquidity refers to the payment of redemption proceeds on T+1 basis, where T is the Business Day where a request for redemption is received and accepted by the Manager before the cut-off time. *** Income distributed will be in the form of cash or units. Category of fund Type of fund Investment strategy Asset allocation (% of the Fund s net asset value) Performance benchmark Money Market Income The Fund seeks to achieve its objective by making placements into Malaysian Ringgit deposits for various tenors not more than one year with licensed financial institutions or with a single licensed financial institution. Up to 100% of the net asset value (NAV) of the Fund will be invested in Malaysian Ringgit deposits with licensed financial institution(s). Note: Any remainder of the NAV of the Fund not invested will be held in cash in the bank account. The benchmark of the Fund is the Maybank Overnight Repo Rate which is available at Note: The risk profile of the Fund is higher than the benchmark. 2

3 Distribution policy Subject to availability of income, distribution will be made on monthly basis. Launch date 18 January Who am I investing with? Manager Trustee Maybank Asset Management Sdn Bhd PB Trustee Services Berhad 5. What are the possible outcomes of my investment? There are many possible outcomes associated with an investment in the Fund and involve some degree of risk. Investors are to take note that the value of an investment in the Fund and its distributions payable (if any) may go down as well as up and are not guaranteed. The value of your investment is at risk depending on the underlying investments of the Fund. Factors which may affect the value of your investment include but are not limited to a change in interest rates and difficulty in getting back the deposits placed with financial institutions which has becomes insolvent. For more information on risks associated with an investment in the Fund, please refer to the following section and the information memorandum of the Fund. However, the Fund s investments in deposits generally are considered low risk investments as compared to other asset classes. KEY RISKS 5. What are the key risks associated with this fund? Specific Risks (a) Credit/ Default Risk This risk is associated to the creditworthiness of a licensed financial institution and its expected ability to make timely payments of interest and principal. In the event a licensed financial institution defaults on its agreements, i.e. unable to service timely payments of interest and/or pay the principal amount upon maturity. This may cause the Fund to be written down, resulting in the loss of capital and/or income. The Manager will conduct ongoing monitoring of the licensed financial institution s credit ratings. (b) Interest rate risk The return of deposits moves in tandem with fluctuations in interest rates. In the event of falling interest rate, the returns of any new placements in deposits will be lower correspondingly. The Fund will enjoy higher interest income for any new placements in deposits when interest rates rise and vice versa. Depending on the Manager s view of the future interest rate trend, the Manager attempts to mitigate the interest rate risk of the Fund s investments by managing the duration structure of the Fund. Note: Since the Fund adopts the accrual accounting approach for its valuation of deposits, there will not be any mark-to-market gain/loss due to interest rate movements. Based on the accrual valuation approach, all deposits placed with licensed financial institutions will be valued each Business Day by reference to the principal value of such deposits and the interests/profits will be accrued daily for the relevant period. 3

4 (c) Liquidity risk Liquidity risk may occur when the Fund experiences large redemptions and does not have sufficient cash to honour the redemption requests. The Manager may be required to prematurely unwind positions in longer term placements resulting in foregone interest. The risk is mitigated by diversifying the placement across deposits of various tenors. (d) Concentration risk The Fund may focus a greater portion of its assets in a smaller selection of investments by investing wholly in deposits with one single licensed financial institution, exposing it to concentration risk. Given that, the Fund s value and/or performance may be dependent on the performance and credit of a particular licensed financial institution/counterparty. Investors should be aware of the Fund s possible concentration in exposure to a particular licensed financial institution/counterparty when investing in this Fund. Investors are advised to read the information memorandum of the Fund and understand the risks involved and, if necessary, consult your professional adviser for a better understanding of the risks. HARGES FEES & CHARGES 6. What are the fees and charges involved? There are fees and charges involved and you are advised to consider them before investing in the Fund. a) The following table describes the fees and charges that you may incur directly when you invest in the Fund: Sales charge Redemption charge Switching fee Transfer fee Nil. Nil. Not Applicable. Not Applicable. b) The following table describes the fees that you may incur indirectly when you invest in the Fund: Annual management fee Annual trustee fee 0.15% per annum of the NAV of the Fund, accrued daily and paid monthly. 0.02% per annum of the NAV of the Fund, accrued daily and paid monthly. 7. How often are valuations available? VALUATIONS AND EXITING FROM INVESTMENT VALUATIONS AND EXITING FROM INVESTMENT The daily NAV per unit of the Fund is valued at the next valuation point after the request for purchase and redemption is received by the Manager on every Business Day. Unit Holders will be able to obtain the unit price of the Fund from Alternatively, investors may contact the client servicing personnel at (ext. 7806/ 7923) or visit the Manager s website at 4

5 8. How can I exit from this investment and what are the risks and costs involved? The Manager accepts redemption requests on each Business Day. The redemption request must be received and accepted by the Manager by 4.30 pm on a Business Day. Such redemption request will be processed based on the NAV per unit as at the next valuation point which is at am on the next Business Day (T+1) (forward pricing) and the redemption proceeds will be paid out on the same Business Day (T+1). For redemption requests which are received after 4.30 pm on a Business Day, the redemption requests will be considered to be transacted on the next Business Day. Transaction costs such as charges for telegraphic transfers, if any, will be borne by the unit holders and offset against the redemption proceeds. CONTACT INFORMATION 9. Who should I contact for further information or to lodge a complaint? 1. For internal dispute resolution, you may contact: Client Servicing Personnel Tel : (ext. 7806/ 7923) Fax : enquiries@maybank-am.com 2. If you are dissatisfied with the outcome of the internal dispute resolution process, please refer your dispute to the Securities Industries Dispute Resolution Corporation (SIDREC): (a) via phone to : (b) via fax to : (c) via to : info@sidrec.com.my (d) via letter to : Securities Industry Dispute Resolution Center (SIDREC) Unit A-9-1, Level 9, Tower A Menara UOA Bangsar No. 5, Jalan Bangsar Utama Kuala Lumpur 3. You can also direct your complaint to the Securities Commission Malaysia (SC) even if you have initiated a dispute resolution process with SIDREC. To make a complaint, please contact the SC s Investor Affairs & Complaints Department: (a) via phone to the Aduan Hotline at : (b) via fax to : (c) via to : aduan@seccom.com.my (d) via online complaint form available at (e) via letter to : Investor Affairs & Complaints Department Securities Commission Malaysia No 3 Persiaran Bukit Kiara Bukit Kiara Kuala Lumpur 5