The Fund aims to provide income through investment in fixed income instruments.
Wholesale Fixed Income (Close-ended)
The Offer Period shall be for a period of not more than 45 calendar days from the Commencement Date of the Fund.
The Offer Period may be shortened if we determine that it is in your best interest.
1 August 2018
This Fund is a close-ended fund which will mature on the 3rd anniversary of the Investment Date or such earlier date in accordance with the provisions of the Deed or subject to the Early Maturity feature.
To achieve the objective of the Fund, we intend to invest a minimum of 70% of the Fund’s NAV in fixed income instruments and the remaining balance of the Fund’s NAV in liquid assets. The minimum allocation of fixed income instruments however will not be observed during the early inception of the Fund as we build the portfolio, and nearing the Maturity Date as the Fund begins to divest.
The Fund may also invest up to 40% of its NAV in unrated bonds and/or bonds which are rated below investment grade by Standard & Poor’s, Moody’s, Fitch, RAM, MARC or any other rating agencies (please refer to the credit ratings chart under Section 4 – “Credit and default risk” in the Information Memorandum, for further details).
Investments in Foreign Fixed Income Instruments
The Fund will invest in foreign fixed income instruments where the regulatory authority is an ordinary or associate member of the International Organization of Securities Commissions (IOSCO).
The Fund will also invest in money market instruments and deposits with Financial Institutions. The selection of the issuers will depend largely on the credit quality and liquidity of the issuer based on our internal credit rating model.
Derivatives trades may be carried out for both investments and hedging purposes through financial instruments such as, but not limited to, forward contracts, futures contracts swaps and options.
The Fund may also invest into structured products such as but not limited to credit linked notes. Investment into these structured products will provide the Fund with the exposure to the reference asset. Each of these products has its own targeted maturity and will expose investors to the price fluctuation of, in the case of a credit linked note, the reference entity that the credit linked note is linked to. As a result, any fluctuation in the price of the structured product may also lead to fluctuations in the NAV of the Fund i.e., if the price of the structured product sees a drop in price, the NAV of the Fund will also be negatively impacted. As the note is structured by an external party, investments into a structured product will also expose the Fund to counterparty risk, which we will attempt to mitigate by carrying out a stringent selection process on its counterparty prior to an investment being made.
Early Maturity What is an Early Maturity?
An Early Maturity is an event where the Fund is unwound on or after the first (1st) anniversary of the Fund’s Investment Date and up to 30 days before the third (3rd) anniversary of the Fund’s Investment Date, subject to the Fund achieving certain requirements (please refer to “How is an Early Maturity triggered” below). Should this occur, the Fund will mature on the Early Maturity Date. When an Early Maturity occurs, we will liquidate all of the investments in the portfolio and return to you the NAV proportion to the number of Units held by you.
How is an Early Maturity triggered?
The Fund’s Early Maturity will be triggered when:-
(a) The NAV per Unit of the Fund is at or higher than the Target NAV per Unit for at least ten (10) consecutive Business Days; and
(b) Once criteria (a) is met, we have the option to exercise the right to trigger an Early Maturity by issuing an Early Maturity Communiqué to you on the next Business Day of the day when criteria (a) is met.
Once (a) and (b) have occurred, the Fund shall mature on the Early Maturity Date, which shall fall on the 10th Business Day immediately following the date we issue the Communiqué to you. In the event we deem unable to liquidate all the assets on the 10th Business Day, we will issue a Communiqué to you to extend the Early Maturity Date up to the 20th Business Day from the date the Early Maturity Communiqué is issued. Note: The Early Maturity Date may fall on a date, earliest on the 1st anniversary of the Investment Date up to the date, 30 days before the 3rd anniversary of the Investment Date.
Depending on the level of income the Fund generates, the Fund will provide distribution on an annual basis.
A minimum of 70% of the Fund’s NAV to be invested in fixed income instruments; and
The remaining balance of the Fund’s NAV to be invested in liquid assets, derivatives, and/or structured products.
3-years Malayan Banking Berhad fixed deposit rate as at Investment Date (source: www.maybank2u.com.my)
The risk profile of this Fund is different from the risk profile of the benchmark.
Minimum Initial Investment
Minimum Additional Investment
Any additional investments can only be made during the Offer Period.
Minimum holdings of units
FEES & CHARGES
Sales Charge per Unit
3.00% of the Offer Price and is not negotiable.
Annual Management Fee
Up to 0.04% per annum of the NAV of the Fund (excluding foreign custodian fees and charges).
We will impose a Penalty Charge if repurchase of Units is made after the Investment Date of the Fund. Depending on when the repurchase request is made, the following Penalty Charge shall be applicable:
3.00% of NAV per Unit from the Investment Date up to the first (1st) anniversary of the Investment Date.
2.00% of NAV per Unit from the Business Day immediately following the first (1st) anniversary up to the second (2nd) anniversary of the Investment Date.
1.00% of NAV per Unit from the Business Day immediately following the second (2nd) anniversary up to the third (3rd) anniversary of the Investment Date.