The Fund aims to provide income return whilst maintaining capital preservation*.
* The Fund is not a capital guaranteed nor a capital protected fund.
Fixed Income (Close-ended)
8 March 2018
The Fund is a close-ended fixed income wholesale fund with a Maturity Date falling on the Fund’s second (2nd) anniversary from the Investment Date.
The Fund is suitable for you, if you:
have a short term investment horizon;
want exposure into fixed income instruments; and
have a low risk tolerance.
We strive to achieve capital preservation# of the Fund by investing a minimum of 90% of the Fund’s NAV in Defensive Assets. We will invest only in Defensive Assets issued by Financial Institutions with a minimum credit rating of AA3 by RAM or AA- by MARC or equivalent rating by other recognized rating agencies. The maturity proceeds from the investments in Defensive Assets could potentially match the capital of the Unit Holders (including Sales Charge and GST imposed on the subscription of Units during the Offer Period), subject to no occurrence of credit default by the Financial Institutions.
In order to provide potential capital appreciation of the Fund, we may invest up to a maximum of 10% of the Fund’s NAV in Active Assets. At the Investment Date of the Fund, the Fund will only invest in one type of Active Assets, and will remain so until the Maturity Date of the Fund. The Active Assets allow the Fund to establish a long position on the underlying asset, which is a collective investment scheme that is regulated in an eligible market. As such, the potential income distribution of the Fund is derived from the Active Assets. Investment in Active Assets will expose investors to the price fluctuations of the collective investment scheme that the Active Assets are linked to. As a result, any fluctuation in the price of the Active Assets may also lead to fluctuations in the NAV of the Fund i.e. if the price of the Active Assets drops, the NAV of the Fund will also be negatively impacted. As the Active Assets are structured by an external party, investments into the Active Assets will also expose the Fund to counterparty risk, which we will attempt to mitigate by carrying out a stringent selection process on the counterparty prior to an investment being made.
The currency denomination of the Active Assets that the Fund intends to invest into may be in a currency that differs from that of the Fund’s base currency. As such, the Fund will be exposed to currency risk arising from the currency exchange between the denomination of the Active Asset and the denomination of the Fund’s base currency. For example, if the Fund’s base currency is MYR, and the denomination of the Active Asset is EUR, the Fund is then exposed to the currency fluctuation of the EURMYR. With the assumption that the performance of the Active Asset remains unchanged, the value of the Active Asset will be negatively impacted should MYR appreciate against the EUR, thus negatively impacting the Fund’s NAV. Similarly, the value of the Active Asset will appreciate should the MYR depreciate against the EUR, thus leading to a positive rise in the Fund’s NAV.
The Fund will invest only into countries where the regulatory authorities are ordinary or associate members of the International Organization of Securities Commissions (IOSCO).
In line with the Fund’s objective, we will employ a buy and hold strategy for the Fund’s investments. As such, the Fund will make its investments into its Defensive Assets and its Active Assets at the Investment Date and remain invested until the Maturity Date of the Fund.
At the Maturity Date of the Fund, we will redeem or sell all the assets of the Fund, and return all the proceeds to you (based on the number of Units you hold) after deducting applicable Fund expenses and fees. The payment of proceeds is expected to be paid to you within two (2) weeks from the Maturity Date.
Subject to the availability of income, the Fund will distribute income on an annual
A minimum of 90% of the Fund’s NAV to be invested in Defensive Assets; and
A maximum of 10% of the Fund’s NAV to be invested in Active Assets.
Minimum Initial Investment
Minimum Additional Investment
Any additional investments by you can only be made during the offer period
Minimum holdings of units
FEES & CHARGES
Sales Charge per Unit
2.00% on the offer price and it is non‐negotiable.
Annual Management Fee
Up to 0.03% per annum of the NAV of the Fund (excluding foreign custodian fees and charges)