PRODUCT HIGHLIGHTS SHEET. for. Affin Hwang Aiiman Money Market Fund

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1 PRODUCT HIGHLIGHTS SHEET for Affin Hwang Aiiman Money Market Fund RESPONSIBILITY STATEMENT This Product Highlights Sheet has been reviewed and approved by the directors or authorised committee or persons approved by the Board of Affin Hwang Asset Management Berhad ( T) 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 Affin Hwang Aiiman Money Market Fund ( the Fund ) and a copy of this Product Highlights Sheet has been lodged with the Securities Commission Malaysia. The authorisation of the Fund and lodgement of this Product Highlights Sheet should not be taken to indicate that the Securities Commission Malaysia recommends the 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 the Affin Hwang Asset Management Berhad responsible for the 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. 1

2 This Product Highlights Sheet only highlights the key features and risks of this Fund. Investors are advised to request, read and understand the Master Prospectus of the Fund before deciding to invest. 1. What is this product about? PRODUCT HIGHLIGHTS SHEET AFFIN HWANG AIIMAN MONEY MARKET FUND BRIEF INFORMATION ON THE PRODUCT Affin Hwang Aiiman Money Market Fund is an open-ended Islamic money market fund which aims to provide short-term liquidity and income, whilst maintaining capital stability by investing in a diversified portfolio of Islamic money market instruments. PRODUCT SUITABILITY 2. Who is this product suitable for? The Fund is designed for retail investors who seek regular income in a highly liquid investment and have a shortterm investment horizon of 1 year and below. 3. What am I investing in? KEY PRODUCT FEATURES Launch Date 13 November 2008 Tenure The Fund is an open-ended fund where it does not have a fixed maturity date and may only be terminated in accordance with the terms of the Master Prospectus and the provisions of the Deed. Asset Allocation The Fund asset allocation range is as follows:- Asset Class % of the Fund s NAV Islamic money market instruments (with maturity of less than 365 days) 90% to 100% of the NAV of the Fund Sukuk and Islamic money market instruments (with maturity of more than 365 days but less than 732 days) Up to 10% of the NAV of the Fund The Manager will maintain a sufficient level of cash for liquidity purposes Performance Benchmark Investment Strategy 1-month GIA rate quoted by Malayan Banking Berhad The risk profile of this Fund is different from the risk profile of the benchmark. This Fund will be actively managed to provide liquidity to meet the short-term cash flow requirements of its Unit Holders while providing income to the Unit Holders, if any. The investments of the Fund will be focused on Sukuk and Islamic money market instruments. Distribution will be reinvested unless Unit Holders opt for distribution to be paid out. 2

3 This Fund is structured as an open-ended fund with a target allocation of 90% invested in Islamic money market instruments with a maturity period of less than 365 days. Up to 10% of the Fund s NAV may be invested in Sukuk and Islamic money market instruments where both the investments will have a maturity period of more than 365 days but less than 732 days. The investment approach is to focus on instruments that provide aboveaverage yields compared to returns from savings and investment accounts. These Islamic money market instruments may include Mudarabah Interbank Investment (MII), Wadiah Acceptance, Government Investment Issue (GII), Bank Negara Monetary Notes-i (BNMN-i), Sell and Buy Back Agreement (SBBA), Cagamas Sukuk, When Issue (WI), Islamic Accepted Bills (IAB), Islamic Negotiable Instruments (INI), private Sukuk/Islamic debentures, Ar Rahnu Agreement-I (RA-i), Sukuk BNM Ijarah (SBNMI) and Commodity Murabahah. The ratings of the Sukuk and Islamic money market instruments shall carry at least BBB and P2 by RAM or similar rating by other rating establishment. However, the Manager will also have the flexibility to invest into unrated issuances. In this instance, the Manager will carry out an internal credit selection process before it is included into the Fund s portfolio to mitigate credit / default risk. In the unlikely event of a credit rating downgrade, the Manager reserves the right to deal with the instruments in the best interest of the investors and dispose off the holdings within a reasonable time frame, taking into consideration prevailing market conditions and factors. Distribution Policy Minimum Initial Investment Minimum Additional Investment Minimum Units Held The Manager will also hold the option to invest into collective investment schemes that hold a similar investment objective as the Fund. Subject to the availability of income, the Fund will provide Unit Holders with monthly income by way of reinvestment in the form of additional Units. RM5,000. RM1,000 10,000 Units 4. Who am I investing with? Relevant parties information: Note: Please refer to the Fund s Master Prospectus on further details of the Fund. The Manager Manager Delegate (Fund Management) Manager s Delegate (Fund Valuation & Accounting Function) The Trustee Affin Hwang Asset Management Berhad Asian Islamic Investment Management Sdn. Bhd. ( T) (AIIMAN) (a member of Affin Holdings Berhad) Deutsche Bank (Malaysia) Berhad AmanahRaya Trustees Berhad The Manager, in its sole discretion, may reduce the minimum initial investment amount, minimum holding of Units, minimum additional investment amount, minimum repurchase amount and minimum switching amount. 3

4 Shariah Adviser Tax Adviser Auditor/Reporting Accountants Solicitor Amanie Advisors Sdn. Bhd. PricewaterhouseCoopers Taxation Services Sdn. Bhd. PricewaterhouseCoopers Messrs. Soon Gan Dion & Partners 5. What are the possible outcomes of my investment? The Fund invests in a diversified portfolio of Islamic money market instruments to provide liquidity to meet the short-term cash flow requirements of its Unit Holders while providing a reasonable level of current income. However, unlike fixed deposits which generally provide a guarantee on capital invested and carry specific rate of return, the Fund does not provide a guarantee on capital invested nor does it guarantee a fixed rate of return. KEY RISKS 6. What are the key risks associated with this product? General Risks Affected by variable factors and not guaranteed The performance of a unit trust fund is affected by many variable factors and is not guaranteed. These include overall economic and financial market conditions such as interest rate fluctuation and stability of local currency. While a track record may provide some insight on future performance, it is by no means guaranteed. The prices of Units may go down as well as up. Likewise, distribution may vary from year to year depending on the performance of the unit trust fund. Issuer risk - The value of each individual securities that a unit trust fund invests in may decline for a number of reasons which is directly related to the issuer, such as but not limited to, the management performance, financial leverage, changing industry conditions and changes in consumer tastes and demand. Management risk - Poor management of the unit trust fund may jeopardise the investment of each Unit Holder. Therefore, it is important to set investment objectives, policies and appropriate strategies before any investment activities can be considered. However, there can be no guarantee that these measures will produce the desired results. Loan financing risk - Investors should assess the inherent risk of investing with borrowed money, which should include the ability to service the loan repayments and the effect of increase in interest rates on the loan repayments. Non-compliance risk - The operations and administration of the fund by the Manager or its delegate are governed by the fund s deed, all applicable laws and regulations or internal policies and procedures. Risk may arise when compliance with the provisions of the deed or the applicable law is not ensured. The magnitude of such risk and its impact on the funds and/or Unit Holders are dependent on the nature and severity of the noncompliance. Currency risk - The risk associated with investments in foreign currencies. The NAV of a unit trust fund will be lower if the foreign currency in which the securities are denominated moves unfavourably against Ringgit Malaysia. Country risk - The prices of securities may also be affected by the political and economic conditions of the country in which the securities are issued. Specific risks Note: Please refer to section 4.1 of the Master Prospectus on further detail of each risk. 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. If the Fund has a large portfolio of stocks issued by smaller companies, the relatively lower level of liquidity of these stocks can adversely affect the value of the Fund. 4

5 This is because there are generally less ready buyers of such stocks compared with the stocks of larger and more established companies. Credit/Default risk - The risk arises when the issuers or financial institution of the permitted investments do not make timely payment of profit and/or principal amount. This may lead to default in the payment of profit and/or principal amount and ultimately the value of the Fund may be adversely affected. Inflation risk - Inflation reduces the purchasing power of money. Therefore in an inflationary environment, there is a possibility that income from Sukuk/Islamic debentures may not be able to keep up with inflation. Note: Please refer to section 4.2 of the Master Prospectus on further detail of each risk. 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. The various asset classes generally exhibit different levels of risk. The investments of the Fund carry risk and you are recommended to read the whole Master Prospectus to assess the risk of the Fund. If necessary, you should consult your professional adviser(s) for a better understanding of the risks. 7. What are the fees and charges involved? FEES & CHARGES There are fees and charges involved and you are advised to consider them before contributing to the Fund. What will I be charged by the Manager? Sales charge per Unit Repurchase charge Switching fee Transfer fee Nil Nil Nil RM5.00 per transfer What are the key ongoing fees charged to the Fund? Management fee Trustee fee Up to 0.50% per annum of the NAV of the Fund. Up to 0.02% per annum of the NAV of the Fund (excluding foreign custodian fees and charges). ALL FEES, CHARGES AND EXPENSES ARE EXCLUSIVE OF GOODS AND SERVICES TAX. FROM 1 APRIL 2015 ONWARDS, WE, THE TRUSTEE AND/OR OTHER SERVICE PROVIDERS WILL CHARGE GOODS AND SERVICES TAX AT THE RATE OF 6% ON THE ABOVEMENTIONED FEES, CHARGES AND EXPENSES IN ACCORDANCE WITH THE GOODS AND SERVICES TAX ACT How often are valuations available? VALUATIONS AND EXITING FROM INVESTMENT The Fund will be valued on every Business Day and you may obtain NAV and prices of the Fund from our website at our customer service via our toll free number or to customercare@affinhwangam.com. 9. How can I exit from this investment and what are the risks and costs involved? You may request to redeem investments in the Fund at any point in time by completing the repurchase application form and returning it to the Manager on any Business Day from 9.00 a.m. to 3.30 p.m. Payments will 5

6 be made to you the next business day from the day the repurchase request is received by the Manager and provided that all documentations are completed and verifiable, at or before the cut-off time of a.m. CONTACT INFORMATION 10. Who should I contact for further information or to lodge a complaint? 1. For internal dispute resolution, you may contact our customer service personnel: (a) via phone to : (b) via fax to : (c) via toll free no. : (d) via to : customercare@affinhwangam.com (e) via letter : Affin Hwang Asset Management Berhad Suite 11-01, 11th Floor Menara Keck Seng 203, Jalan Bukit Bintang Kuala Lumpur Complaints should be made in writing with the following information: (a) particulars of the complainant which include name, correspondence address, contact number, address (if any) and other relevant information; (b) circumstances of the non-compliance or improper conduct; (c) parties alleged to be involved in the improper conduct; and (d) other supporting documentary evidence (if any). 2. If you are dissatisfied with the outcome of the internal dispute resolution process, please refer your dispute to the following regulatory bodies, details of which are as follows: (a) via to : legalcomp@fimm.com.my (b) via online complaint form : (c) via letter to : Complaints Bureau Legal, Secretarial & Regulatory Affairs Federation of Investment Managers Malaysia , 6 th Floor, Wisma Tune No. 19, Lorong Dungun, Damansara Heights Kuala Lumpur OR Securities Industries Dispute Resolution Corporation (SIDREC): (a) via phone to : (b) via fax : (c) via to (d) via letter to : info@sidrect.com.my : 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 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 6

7 APPENDIX : GLOSSARY Securities Commission Malaysia No 3 Persiaran Bukit Kiara Bukit Kiara Kuala Lumpur Bursa Malaysia Business Day Deed(s) the Fund the Manager Master Prospectus NAV Means the stock exchange managed and operated by the Bursa Malaysia Securities Berhad including such other name as it may be amended from time to time. Means a day on which Bursa Malaysia is open for trading. Principal deed dated 20 August 2008, a first supplemental deed dated 3 January 2013, a second supplemental deed dated 26 September 2013, a third supplemental deed dated 22 July 2014 and a fourth supplemental deed dated 6 August Refers to Affin Hwang Aiiman Money Market Fund. Refers to Affin Hwang Asset Management Berhad. Means the master prospectus including any supplementary thereof, as the case may be. Means the value of the Fund which is determined by deducting the value of all the Fund s liabilities from the value of all the Fund s assets, at the valuation point. For the purpose of computing the annual management fee and annual trustee fee, the NAV of the Fund should be inclusive of the management fee and trustee fee for the relevant day. NAV per Unit RM SC Shariah short term Sukuk Unit or Units Units in Circulation Unit Holder Means the NAV of the Fund at a particular valuation point divided by the total number of Units in Circulation of the Fund in circulation at that valuation point. Means Ringgit Malaysia. Securities Commission Malaysia. Means Islamic law, originating from the Qur`an (the holy book of Islam), and its practices and explanations rendered by the prophet Muhammad (pbuh) and ijtihad of ulamak (personal effort by qualified Shariah scholars to determine the true ruling of the divine law on matters whose revelations are not explicit). Means a period of 3 years or less. Means a document or certificate, documenting the undivided ownership or investment in assets in accordance with Shariah principles and concepts. 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 and means a Unit of the Fund(s) and if the Fund has more than one class of Units, it means a Unit issued for each class of Units. Means Units created and fully paid and which have not been cancelled. It is also the total number of Units issued at a particular valuation point. Means the person for the time being who, in full compliance to the relevant laws and under the Deed, is registered pursuant to the Deed as a holder of Units of the Fund, including jointholder. 7