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PMB SHARIAH SMALL-CAP FUND 2016/2017
ii
PMB Investment Berhad
No units will be issued or sold on the basis of this Prospectus later than one (1) year after the
date of this 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 Prospectus
that is false, misleading, or from which there is a material omission; or for any misleading or
deceptive act in relation to this Prospectus or the conduct of any other person in relation to the
Fund.
The Fund has been certified as being Shariah-compliant by the Shariah Adviser appointed for
the Fund.
Responsibility Statement
This Prospectus has been reviewed and approved by the directors of PMB Investment Berhad 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 this Prospectus
false or misleading.
Statements of Disclaimer
The Securities Commission Malaysia has authorized PMB Shariah Small-Cap Fund (“the Fund”) and a
copy of this Prospectus has been registered with the Securities Commission Malaysia.
The authorization of the Fund, and registration of this Prospectus, should not be taken to indicate that
the Securities Commission Malaysia recommends the Fund or assumes responsibility for the correctness
of any statement made, opinion expressed or report contained in this Prospectus.
The Securities Commission Malaysia is not liable for any non-disclosure on the part of PMB Investment
Berhad responsible for the Fund and takes no responsibility for the contents in this Prospectus. The
Securities Commission Malaysia makes no representation on the accuracy or completeness of this
Prospectus, and expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole
or any part of the 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 PROFESSIONAL ADVISERS.
PMB SHARIAH SMALL-CAP FUND 2016/2017
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PMB Investment Berhad
CONTENTS
1. GLOSSARY OF TERMS/ABBREVIATIONS 1-4
2. CORPORATE DIRECTORY 5-7
3. KEY DATA/INFORMATION SUMMARY
8-10
3.1 FUND INFORMATION 8
3.2 FEES, CHARGES AND EXPENSES 9
3.3 ADDITIONAL INFORMATION 10
4. RISK FACTORS 11-12
4.1 GENERAL RISKS OF INVESTING IN THE FUND 11
4.2 SPECIFIC RISKS ASSOCIATED WITH INVESTMENT PORTFOLIOS 12
5. THE FUND 13-20
5.1 FUND PROFILE 13
5.2 INVESTMENT OBJECTIVE 13
5.3 INVESTMENT STRATEGY 13
5.4 ASSET ALLOCATION 13
5.5 TEMPORARY DEFENSIVE POSITIONS 14
5.6 RISKS OF INVESTING IN THE FUND 14
5.7 RISK MANAGEMENT 14
5.8 PERFORMANCE BENCHMARK 14
5.9 PERMITTED INVESTMENT 15
5.10 INVESTMENT RESTRICTIONS AND LIMITS 15
5.11 VALUATION OF INVESTMENTS 16
5.12 POLICY ON GEARING 17
5.13 SHARIAH-COMPLIANT AND SHARIAH APPROVAL PROCESS 18
6. FEES, CHARGES AND EXPENSES 21-23
6.1 CHARGES 21
6.2 FEES 22
6.3 EXPENSES 23
6.4 REBATE AND COMMISSION 23
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7. TRANSACTION INFORMATION 24-33
7.1 TRANSACTION DETAILS 24
7.2 PAYMENT METHODS 25
7.3 COOLING-OFF POLICY 25
7.4 REPURCHASING/REDEEMING AN INVESTMENT 26
7.5 CHANNELS TO PURCHASE AND REDEEM UNITS 26
7.6 SWITCHING BETWEENS FUNDS 26
7.7 TRANSFER OF UNITS 27
7.8 A QUICK GUIDE ON HOW TO BUY, SELL, SWITCH & TRANSFER 28
7.9 INCOME DISTRIBUTION AND REINVESTMENT POLICIES 29
7.10 DETERMINATION OF PRICE 30
8. MANAGEMENT OF THE FUND
34-42
8.1 THE MANAGER’S PROFILE 34
8.2 BOARD OF DIRECTORS 34
8.3 MANAGEMENT TEAM 34
8.4 SUMMARY OF FINANCIAL POSITION 36
8.5 ROLES, DUTIES AND RESPONSIBILITIES OF THE MANAGEMENT
COMPANY
36
8.6 MANAGER’S DELEGATE 37
8.7 MATERIAL LITIGATION AND ARBITRATION 37
8.8 INVESTMENT COMMITTEE 37
8.9 SHARIAH ADVISER OF THE FUND 39
8.10 INVESTMENT MANAGEMENT TEAM 40
9. THE TRUSTEE OF THE FUND
43-45
9.1 COMPANY PROFILE 43
9.2 TRUSTEE’S STATEMENT OF RESPONSIBILITY 44
9.3 ROLES, DUTIES AND RESPONSIBILITIES OF THE TRUSTEE 44
9.4 TRUSTEE’S DECLARATION 45
9.5 TRUSTEE’S OBLIGATION 45
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10. SALIENT TERMS OF THE DEED
46-50
10.1 RIGHTS AND LIABILITIES OF A UNIT HOLDER 46
10.2 FEES AND CHARGES 46
10.3 OTHER PERMITTED EXPENSES 47
10.4 REMOVAL, REPLACEMENT AND RETIREMENT OF THE
MANAGEMENT COMPANY AND TRUSTEE
48
10.5 TERMINATION OF THE FUND 49
10.6 UNIT HOLDERS’ MEETING 49
11. CONFLICT OF INTEREST
51
12. TAXATION OF THE FUND
52-57
13. ADDITIONAL INFORMATION
58-62
13.1 UPDATES ON THE FUND 58
13.2 PRE-INVESTMENT FORM (PIF) 58
13.3 SUITABILITY ASSESSMENT 58
13.4 INVESTOR RELATION 58
13.5 COMPLAINTS 58
13.6 SECURITIES INDUSTRY DISPUTE RESOLUTION CENTER (SIDREC) 59
13.7
ANTI-MONEY LAUNDERING AND ANTI-TERRORISM FINANCING
(AML/CFT) POLICIES
59
13.8 PRIVACY NOTICE UNDER PERSONAL DATA PROTECTION ACT 2010 60
13.9 GOODS AND SERVICES TAX (GST) 60
13.10 FOREIGN ACCOUNT TAX COMPLIANCE ACT (FATCA) 60
13.11 ZAKAT 60
13.12 AUDITORS OF THE FUND 60
13.13 PLEDGING OF UNITS AS COLLATERAL 61
13.14 BORROWING TO PURCHASE UNITS 61
13.15 PERIOD OF THE FUND 61
13.16 LIST OF DISTRIBUTION CHANNELS 61
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PMB Investment Berhad
14. STATEMENT OF CONSENT
63
15. DOCUMENTS AVAILABLE FOR INSPECTION
64
APPENDICES
1) MASTER APPLICATION FORM
2) INVESTMENT REQUEST FORM
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PMB Investment Berhad
1. GLOSSARY OF TERMS/ABBREVIATIONS
In this Prospectus, except when the context otherwise requires, the following words and expressions shall
bear the following meanings:
“Act” Capital Markets and Services Act 2007 (as amended from time to time);
“ANGKASA” Angkatan Koperasi Kebangsaan Malaysia Berhad;
“application” Application or request to buy unit(s) by an Investor or a Unit Holder;
“BIMBSEC” BIMB Securities Sdn Bhd;
“Bursa Malaysia” Malaysia’s stock exchange managed by Bursa Malaysia Berhad;
“business day” A day on which the Bursa Malaysia is open for dealings;
“buying price” or
“repurchase price” of a unit
The price equivalent to the NAV per unit of the respective funds as at the
next valuation point after the request for repurchase is received by the
Manager;
“CIS”
‘Collective Investment Scheme’ refers to an arrangement where-
a) it is made for the purpose, or having the effect, of providing
facilities for persons to participate in or receive profits or income
arising from the acquisition, holding, management or disposal of
securities, derivatives or any other property (“referred to as
scheme’s assets”) or sums paid out of such profits or income;
b) the persons who participate in the arrangements do not have day-
to-day control over the management of the scheme’s assets; and
c) the scheme’s assets is managed by an entity who is responsible for
the management of the scheme’s assets and is approved/
authorized/licensed by a relevant regulator to conduct fund
management activities;
and includes among others unit trust funds, real estate investment
trusts, exchange-traded funds and closed-end funds;
“CITB” CIMB Islamic Trustee Berhad;
“cut-off time”
The time by which requests for unit purchases or redemptions by
Investors are accepted each day up to the unit trust fund’s dealing cut-off
time and are processed using the same day-end’s NAV prices;
“Deed”
The principal and any supplemental deeds of the Fund made between
the Manager and the Trustee;
“designated fund
manager”
A Capital Markets Services Representative Licence (CMSRL) holder who
is responsible for the fund management of the Fund;
“Distribution Date”
The date on which the cash distribution of the Fund, or unit distribution
in lieu of the cash, is made or scheduled to be made;
“dividend yield”
The amount of a company's annual dividend expressed as a percentage
of the current price of the share of that company;
“Eligible Market”
Means a market that-
a) is regulated by a regulatory authority;
b) operates regularly;
PMB SHARIAH SMALL-CAP FUND 2016/2017
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c) is open to the public; and
d) has adequate liquidity for the purposes of the fund in question.
“equity–related
securities”
Warrants, rights and/or irredeemable unsecured loan stocks (ICULS);
“FBM 100” FTSE Bursa Malaysia Top 100 Index;
“FBM EMAS”
FTSE Bursa Malaysia EMAS Index.
FBM EMAS comprises the constituents of the FTSE Bursa Malaysia Top
100 Index and FTSE Bursa Malaysia Small Cap Index (FBM Small Cap).
FBM Small Cap comprises those eligible companies within the top 98%
of the Bursa Malaysia Main Market excluding constituents of the FTSE
Bursa Malaysia Top 100 Index;
“FBMSHA” FTSE Bursa Malaysia EMAS Shariah Index;
“FBM Shariah Small Cap
Index”
FTSE Bursa Malaysia Shariah Small Cap Index - Bursa Malaysia index
that comprises of Shariah-compliant small cap constituents of the FBM
EMAS that meet the screening requirement of the SAC;
“FIMM” Federation of Investment Managers Malaysia;
“financial institution”
a) If the institution is in Malaysia –
(i) licensed bank;
(ii) licensed investment bank; or
(iii) licensed Islamic bank;
b) if the institution is outside Malaysia, any institution that is
licensed/registered/approved/authorised by the relevant banking
regulator to provide financial services;
“forward pricing”
The determination of the unit price based on the NAV per unit of the
Fund as at the next valuation point after a request for sale or repurchase
of units is received;
“Fund” Means PMB Shariah Small-Cap Fund;
“Guidelines”
Guidelines on Unit Trust Funds issued by the SC, as amended from time
to time;
“Investor” or “Unit
Holder”
The person registered for the time being as a holder of units in the Fund
in accordance with the provisions of the Deed;
“Islamic money market
instruments “
Financial instruments with liquidity and near term maturity, issued
under the Shariah principles, that are tradeable, such as commercial
papers, banker’s acceptance and negotiable certificate of deposit;
“Islamic deposit
placements”
Money placed with financial institutions for an agreed period under the
Shariah principles which are Islamic Negotiable Instruments (INI),
General Investment Accounts (GIA) or Special Investment Accounts
(SIA);
“IUTA”
‘Institutional Unit Trust Adviser’, which is an institution, a corporation or
an organization registered with the FIMM in accordance with FIMM’s
Guidelines for Registration of Institutional Unit Trust Adviser for the
marketing and distribution of unit trusts;
“long term” A period of more than 5 years;
“Manager” or “We” or “us” PMB Investment Berhad;
PMB SHARIAH SMALL-CAP FUND 2016/2017
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PMB Investment Berhad
“MARA” Majlis Amanah Rakyat;
“MARC” Malaysian Rating Corporation Berhad;
“medium term” A period of between 3 and 5 years;
“NAV”
‘Net Asset Value’ refers to the value of a unit trust 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, except that, for the
purpose of computing the annual management fee and the annual
trustee fee, the NAV of the fund should be inclusive (that is, before any
deduction) of the management fee and the trustee fee for the relevant
day;
“NAV per unit”
The NAV of a unit trust fund divided by the number of units in
circulation at the valuation point;
“near term” A period of less than 1 year;
“Prospectus”
Means this prospectus, which is the first prospectus for the Fund and
includes any supplementary or replacement prospectus, as the case
maybe;
“PMB” Pelaburan MARA Berhad;
“PMB Investment” PMB Investment Berhad;
“PMB SSCF” PMB Shariah Small-Cap Fund;
“RAM” RAM Rating Services Berhad;
“redemption” or
“repurchase”
The repurchase by the Manager of all or part of the units owned by the
Unit Holders;
“repurchase price” or
“buying price” of a unit
The price equivalent to the NAV per unit of the Fund as at the next
valuation point after the request for repurchase is received by the
Manager;
“RM” Ringgit Malaysia;
“SAC” Shariah Advisory Council of the SC;
“SC” Securities Commission Malaysia, established under the Securities
Commission Act, 1993;
“securities” Has the same definition according to the Capital Markets and Services
Act 2007 (as amended from time to time);
“selling price of a unit” The price equivalent to the NAV per unit of a unit trust fund as at the
next valuation point after the application for units is received by the
Manager;
“Shariah” Islamic laws, originating from the Qur`an (the holy book of Islam), and
its practices and explanations rendered by the Prophet Muhammad
(peace be upon him) and ijtihad of ulama’ (personal effort by qualified
Shariah scholars to determine the true ruling of the divine law on
matters whose revelations are not explicit);
“Shariah Adviser” The Shariah adviser appointed for the Fund;
“Shariah-compliant
securities”
The investment portfolio of the Fund comprises securities that have
been classified as Shariah-compliant by the SAC. For securities that
have yet to be certified by the SAC, the Shariah Adviser of the Fund will
determine whether or not the securities are Shariah-compliant for
PMB SHARIAH SMALL-CAP FUND 2016/2017
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PMB Investment Berhad
investment by the Fund;
“short term” A period of between 1 and 3 years;
“SPR” ‘Single Pricing Regime’ refers to a policy or system in which the
creation, cancellation, selling and repurchase prices for units are the
NAV per unit of a unit trust fund(s). The actual and total amount of
these prices paid by the Investors then, depend on the rate of sales
charges separately imposed by different distribution channels;
“Structured Products” Any investment product that falls within the definition of “securities”
which provides the holder with an economic, legal or other interest in
another asset ("underlying asset") and derives its value by reference to
the price or value of the underlying asset;
“subscribing price of
unit’
The price payable by an Investor or a Unit Holder of the Fund for the
purchase of a unit of a Fund;
“sukuk” Certificates of equal value which evidence undivided ownership or
investment in the assets using Shariah principles and concepts
endorsed by the SAC;
“Trustee” The trustee appointed for the Fund;
“UiTM” Universiti Teknologi MARA.
“unit” A unit of a unit trust fund that represents a unit holder’s interest;
“unit price” The price at which a unit holder buys or sells units at NAV per unit;
“units in circulation” Units created and fully paid for and which have not been cancelled;
“Unit Holder” or
“Investor”
The person registered for the time being as a holder of units in the Fund
in accordance with the provisions of the Deed;
“Unit Trust Consultant”
or “UTC”
An individual unit trust adviser registered with FiMM; and
“US persons” Refers to:-
a) a citizen of United States of America (US);
b) an individual lawfully admitted for permanent residence of the
US;
c) an unincorporated association with a substantial number of
members who are citizens of the US or are individuals lawfully
admitted for permanent residence of the US; or
d) a corporation incorporated in the US.
PMB SHARIAH SMALL-CAP FUND 2016/2017
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PMB Investment Berhad
2. CORPORATE DIRECTORY
Manager
Registered Office
Business Office
PMB Investment Berhad (256439-D)
Suite C-5-4, Wisma Goshen,
Plaza Pantai, Jalan Pantai Baharu
59200 Kuala Lumpur
Level 20, 1 Sentral,
Jalan Rakyat, Kuala Lumpur Sentral
50470 Kuala Lumpur
Tel: (03) 2785 9800 Fax: (03) 2785 9901
Website: pmbinvest.com.my
E-mail: [email protected]
Manager’s Delegate
Registered Office
Business Office
Pelaburan MARA Berhad (7240-P)
Suite C-5-4, Wisma Goshen,
Plaza Pantai, Jalan Pantai Bharu
59200 Kuala Lumpur
Level 20, 1 Sentral,
Jalan Rakyat, Kuala Lumpur Sentral
50470 Kuala Lumpur
Tel: (03) 2785 9800 Fax: (03) 2785 9901
Website: pelaburanmara.com.my
Board of Directors
Datuk (Dr.) Zamani bin Md Noor - Independent/Chairman
Dato’ Sri Haji Abd Rahim bin Haji Abdul - Independent
Professor Dr. Faridah binti Haji Hassan - Independent
Haji Mansoor bin Ahmad - Independent
Dato’ Mohamad Safie bin Haji Asnawi - Independent
Nik Mohamed Zaki bin Nik Yusoff - Independent
Ahmad Nazim bin Abd Rahman - Non-Independent
Ameer Ali bin Vali Mohamed - Non-Independent/Chief Executive
Officer
Members of
Investment
Committee
Haji Mansoor bin Ahmad - Independent/Chairman
Nik Mohamed Zaki bin Nik Yusoff - Independent
Professor Dr. Mohamed Aslam bin
Mohamed Haneef
- Independent
Ahmad Nazim bin Abd Rahman - Non-Independent
Company Secretary
Business Address
Shahrizat binti Othman (MAICSA No. 0764744)
AAJ Management Services Sdn Bhd (361182-T)
Suite C-5-4, Wisma Goshen
Plaza Pantai, Jalan Pantai Baharu
59200 Kuala Lumpur
Tel: (03) 2283 4007 Fax: (03) 2287 7006
Shariah adviser for
the Manager
Amanie Advisors Sdn Bhd (684050-H)
Level 33, Menara Binjai
No.2, Jalan Binjai, Off Jalan Ampang
504500 Kuala Lumpur
Tel: (03) 2181 8228 Fax: (03) 2181 8219
PMB SHARIAH SMALL-CAP FUND 2016/2017
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PMB Investment Berhad
Shariah Adviser for
the Fund
BIMB Securities Sdn Bhd (290163-X)
32nd Floor, Menara Multi-Purpose, Capital Square
No.8 Jalan Munshi Abdullah
50100 Kuala Lumpur
Tel: (03) 2691 8887 Fax: (03) 2691 8854
Trustee
Registered Office
Business Office
Trustee’s Delegate
Registered Office
Business Office
CIMB Islamic Trustee Berhad (167913-M)
Level 13, Menara CIMB,
Jalan Stesen Sentral 2,
Kuala Lumpur Sentral,
50470 Kuala Lumpur.
Tel : (03) 2261 8888 Fax : (03) 2261 0099
Website: http://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
CIMB Islamic Bank Berhad (671380-H)
Level 13, Menara CIMB
Jalan Stesen Sentral 2
Kuala Lumpur Sentral
50470 Kuala Lumpur
Tel : (03) 2261 8888 Fax: (03) 2261 8889
Level 21, Menara CIMB
Jalan Stesen Sentral 2
Kuala Lumpur Sentral
50470 Kuala Lumpur
Tel: (03) 2261 8888 Fax : (03) 2261 9892
Website: http://www.cimb.com
Auditors
Messr. Jamal, Amin & Partners (AF 1067)
No.60-2B, 2nd Floor,
Jalan 2/23A, Off Jalan Genting Klang,
Taman Danau Kota, Setapak,
53300 Kuala Lumpur
Tel: (03) 4142 1626 Fax: (03) 4142 1601
Solicitors Messrs. M.K Chen & Leong
Suite B-09-02 Plaza Mont’ Kiara
No.2, Jalan Kiara, Mont’ Kiara
50480 Kuala Lumpur
Tel: (03) 6201 7381/7382 Fax: (03) 6201 7380
Tax Adviser
Messr. Ahmad Abdullah & Goh (AF 0381)
Suite 701, Tingkat 7, Wisma Hangsam,
Jalan Hang Lekir,
50000 Kuala Lumpur
Tel: (03) 2070 4408 Fax: (03) 2070 4393
PMB SHARIAH SMALL-CAP FUND 2016/2017
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PMB Investment Berhad
Principal Bankers
1) CIMB Islamic Bank Berhad (671380-H)
Ground Floor,Wisma Genting
No. 28, Jalan Sultan Ismail
50250 Kuala Lumpur
Tel: (03) 2163 6358 Fax: (03) 2031 6320
2) Public Islamic Bank Berhad (14328-V)
Tiong Nam Branch
Level 1 & 2, Wisma Public Bank
300, Jalan Raja Laut
50350 Kuala Lumpur
Tel: (03) 2693 9555 Fax : (03) 2691 4673
FIMM Federation of Investment Managers Malaysia (272577-P)
19-06-1, 6th Floor, Wisma Tune,
No. 19, Lorong Dungun, Damansara Heights,
50490 Kuala Lumpur
Tel : (03) 2093 2600 Fax: (03) 2093 2700
Website: http://www.fimm.com.my
Distribution
Channels
Please refer to the directory of distribution channels in Section 13.16.
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PMB Investment Berhad
3. KEY DATA / INFORMATION SUMMARY
This section is only a summary of the salient information of the Fund and Investors should read
and understand the whole Prospectus before making any investment decisions.
3.1 FUND INFORMATION
NAME PMB SHARIAH SMALL-CAP FUND
Category / Type Equity (Shariah) / Growth
Initial Offer Period RM0.5000 per Unit
Objective The objective of the Fund is to achieve capital growth over the medium to long term
period by investing primarily in small-sized Shariah compliant companies listed on
Bursa Malaysia, in term of market capitalization.
Investment
Strategy
The Fund shall invest between 50% and 99.5% in a diversified portfolio of Shariah-
compliant equity securities of small-sized listed companies on Bursa Malaysia with
market capitalization of at least RM250 million but not more than RM1 billion (at
the point of acquisition). However the Fund may invest up to 20% of its NAV in
securities of companies with market capitalization in excess of RM1 billion but not
more than RM7 billion (at the point of acquisition). The Fund will focus its
investments on companies with growth prospects in medium to long term horizon,
reasonably good earnings, quality management and good corporate governance, as
analysed by the Manager. In view of the Fund’s objective, the designated fund
manager will trade the securities depending on the securities market conditions.
Asset Allocation The Fund shall invest between 70% and 99.5% of its NAV in Shariah-compliant
equity securities. The balance will be invested in Islamic money market
instruments, Islamic deposit placements, sukuk, equity-related securities and/or
other permitted investments
Performance
Benchmark
FBM Shariah Small Cap Index
Note: The risk profile of the Fund is not similar to the risk profile of the
performance benchmark.
Principal Risks • Equity market risk
• Stock specific risk
• Liquidity risk
• Shariah status reclassification risk
You may refer the detailed information of the risks in Chapter 4.
Investor Profile The Fund is suitable for investors who:
• have a high risk tolerance level;
• have a medium to long term investment horizon;
• prefer a portfolio that conforms to Shariah principles; and
• seek for capital appreciation from an aggressive Shariah-compliant fund.
Distribution Policy The distribution of income (if any) is incidental.
Financial Year End 31 July
Trustee CITB
Shariah Adviser BIMBSEC
You may refer the detailed information of the Fund in Chapter 5.
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3.2 FEES, CHARGES AND EXPENSES
a) Charges directly incurred by Investors when purchasing or redeeming units of the Fund.
Table below describes the charges that you may directly incur when you buy or redeem units of the Fund:-
Charges Distribution Channels % of the NAV
Sales charge per unit IUTA, UTC & Direct purchase 6.0%
Repurchase charge per
unit IUTA, UTC & Direct repurchase Nil
Switching Fee
The fee for switching are set out below:
To
From
Equity
funds
Mixed Asset/
Balanced funds
Money Market
funds
PMB SSCF RM25 per
transaction
RM25 per
transaction Nil
Transfer fee RM10 per transaction (excluding stamp duty)
Other charges • Bank charges
• Telegraphic transfer charges
Rate as determined by transacting
financial institutions.
Notes:
i) The Manager may, at its discretion, charge a lower sales charge based on criteria as may be
determined from time to time. Please refer to Chapter 6 for details on the sales charge.
ii) All the above charges and fees are subject to the goods and services tax (GST) currently at the rate
of 6.0%. (You may refer to Section 13.9 on the GST.)
b) Fees and Expenses Indirectly Incurred when Investing in the Fund
Table below describes the fees and expenses that you may indirectly incur when you invest in the Fund:-
Fees and Expenses % Per Annum of NAV
Annual Management Fee 1.5%
Annual Trustee Fee 0.05%
Other Fees and Expenses Directly Related to the Fund
Fees paid to
brokers/dealers
The rate of brokerage fees is in accordance with and determined by the
rules and regulations of Bursa Malaysia.
Auditor’s fee The rate of auditors’ fee is determined by the Manager and auditors as
per the agreement.
Tax adviser’s fee The rate of tax adviser’s fee is determined by the Manager and Tax
Adviser as per the agreement.
PMB SHARIAH SMALL-CAP FUND 2016/2017
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Valuation fee The rate of valuation fee is determined by the independent valuers as
per the agreement.
Taxes The rate of taxes is determined by the Government and other
authorities.
Custodial charges The rate of custodial fee is determined by the Manager and the Trustee.
Tax voucher/
distribution warrants
The fees on tax voucher/distribution warrants are determined by the
printing company.
Annual/interim reports The annual/interim reports fees are determined by the cost incurred on
the issuance and distribution of the annual/interim reports.
Bank charges The rate is determined by the transacting financial institutions.
Note: All the above charges, fees and expenses are subject to the GST currently at the rate of 6.0%. (You
may refer to Section 13.9 on the GST).
3.3 ADDITIONAL INFORMATION
a) Deed of the Fund
The deed in respect of the Fund is dated 28 July 2015 which is available at the business office of the
Manager.
b) Avenues for Advice to Prospective Investors
For investment in Unit trusts, you may find answers to all your questions at
https://www.fimm.com.my/investor/. Alternatively, you may contact ‘Training & Investor
Education Division, Securities Industry Development Corporation, No. 3, Persiaran Bukit Kiara,
Bukit Kiara 50490 Kuala Lumpur (Tel: (03) 6204 8889)
c) Designated Fund Managers
The designated fund manager for the Fund is Isnami bin Ahmad Mohtar. The profile of the
designated fund manager may be referred to in Section 8.10.
• There are fees and charges involved and investors are advised to consider them before
investing in the Fund.
• 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” in Chapter 4.
• Investors are required to complete Pre-Investment Form and Suitability Assessment Form in
addition to Application Form before investing.
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PMB Investment Berhad
4. RISK FACTORS
As with all investments, there are risks involved. The prices of units in, and the income from, a unit
trust fund may go up as well as down. You should be aware of the risks and returns involved in
investing in a unit trust fund. No guarantee is given that you will receive any income distribution or
return on your investments or that you will get back your initial amount invested in full. The risks
involved in investing in the Fund include but not limited to the following:-
4.1 GENERAL RISKS OF INVESTING IN THE FUND
a) Market Risk
Market risk refers to the possibility that an investment will lose value because of a general
decline in financial markets, due to economic, political and/or other factors, which will
result in a decline in the Fund’s NAV.
b) Fund Management Risk
The performance of the Fund depends on the experience, knowledge and expertise of the
fund manager and the investment strategies adopted. Poor management and/or strategies
of a fund, such as delays in responding appropriately to the economic or market changes,
or inadequate portfolio diversification, will jeopardize the investment of unit holders
through the loss of their capital invested in the fund or loss of opportunity.
c) Inflation Risk
This is the risk that investors’ investment in the Fund may not grow or generate income at
a rate that keeps pace with inflation. This would reduce investors’ purchasing power even
though the value of the investment in monetary terms has increased.
d) Loan Financing Risk
This risk occurs when investors take a loan/financing to finance their investment. The
inherent risk of investing with borrowed money includes investors being unable to service
the loan repayments. In the event units are used as collateral, an investor may be required
to top-up the investors’ existing instalment if the prices of units fall below a certain level
due to market conditions. Failing which, the units may be sold at a lower net asset value
per unit as compared to the net asset value per unit at the point of purchase towards
settling the loan.
e) Non-Compliance Risk
The risk that the Manager and others associated with the Fund may not follow the rules set
out in the Fund’s deed and internal policies, or the laws that governs the unit trust scheme,
or act fraudulently or dishonestly. Non-compliance may expose the Fund to higher risks
that may result in financial and/or non-financial losses. However, this risk is greatly
reduced via proper establishment of the compliance and internal control policies.
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4.2 SPECIFIC RISKS ASSOCIATED WITH INVESTMENT PORTFOLIOS
In addition, there are also specific risks associated with the investment portfolio of the Fund. The
specific risks include but are not limited to the following:-
a) Equity Market Risk
The performance of the Fund is subject to the volatility of the stock market which is
influenced by the changes in the economic and political climate, interest rate, international
stock market performance and regulatory policies. The movement of the value in the
underlying investment portfolio will affect the NAV of the Fund. Any downward movement
of the value will negatively impact the NAV of the Fund.
b) Stock Specific Risk
Prices of a particular stock may fluctuate in response to the circumstances affecting
individual companies such as adverse financial performance, news of a possible merger or
loss of key personnel of a company. Any adverse price movements of such stock will
adversely affect the Fund’s NAV.
c) Liquidity Risk
Liquidity risk refers to the ease of liquidating an asset depending on the asset’s volume
traded in the market. If the Fund holds assets that are illiquid, or are difficult to dispose of,
the value of the Fund will be negatively affected when it has to sell such assets at
unfavourable prices.
d) Shariah Status Reclassification Risk
This risk refers to the risk that the currently held Shariah-compliant equities in the Fund
may be reclassified as Shariah non-compliant in the periodic review of the equities by the
SAC, the Shariah adviser or the Shariah boards of the relevant Islamic indices. If this
occurs, the Manager will take the necessary steps to dispose such equities. There may be
opportunity loss to the Fund due to the Fund not being allowed to retain the excess capital
gains derived from the disposal of the Shariah non-compliant equities. In such an event,
the Fund should :–
i) dispose of the securities if the value of the securities exceeds or is equal to the
investment cost on the date of announcement of the List of Shariah-compliant
securities by the SAC. The Fund is allowed to keep dividends received and capital
gain from the disposal of the securities up to the date of announcement of the List
of Shariah-compliant securities by the SAC. However, any dividends received and
excess capital gain from the disposal of Shariah non-compliant securities after the
date of announcement of the List of Shariah-compliant securities by the SAC
should be channeled to baitulmal and/or charitable bodies; or
ii) hold the respective securities if the market price of the said securities is below the
investment cost until the market price or value of the securities is equal to the
cost of investment.
As a result of the general risks of investing in the Fund and specific risks associated with investment
portfolios, capital appreciation of the value of the Fund cannot be guaranteed. However, the Manager will
take reasonable steps to ensure that the above potential risks are mitigated.
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5. THE FUND
5.1 FUND PROFILE
Category of Fund Equity (Shariah)
Type of Fund Growth
5.2 INVESTMENT OBJECTIVE
The objective of the Fund is to achieve capital growth over the medium to long term period by investing
primarily in small-sized Shariah compliant companies listed on Bursa Malaysia, in term of market
capitalization.
Note: Any material changes to the investment objective of the Fund require Unit Holder’s approval.
5.3 INVESTMENT STRATEGY
The Fund shall invest between 50% and 99.5% in a diversified portfolio of Shariah-compliant equity
securities of small-sized listed companies on Bursa Malaysia with market capitalization of at least RM250
million but not more than RM1 billion (at the point of acquisition). However the Fund may invest up to 20%
of its NAV in securities of companies with market capitalization in excess of RM1 billion but not more than
RM7 billion (at the point of acquisition). The Fund will focus its investments on companies with growth
prospects in medium to long term horizon, reasonably good earnings, quality management and good
corporate governance, as analysed by the Manager. In view of the Fund’s objective, the designated fund
manager will trade the securities depending on the securities market conditions.
5.4 ASSET ALLOCATION
Asset class % of the Fund’s NAV
Shariah-compliant equity securities Minimum 70% and maximum 99.5%
Islamic money market instruments, Islamic
deposit placements, sukuk, equity-related
securities and/or other permitted investments.
The remaining balance of the Fund’s NAV not
invested in the above.
The equity allocation may be reviewed from time to time depending on the global, regional and local
economic as well as equity market conditions. This includes assessing the relevant political, economic and
business environment prior to making investment decisions. The Manager may take a temporary defensive
position, as disclosed in Section 5.5, of which the asset allocation of the equity may go below the minimum
level.
The investment portfolio of the Fund comprises securities which have been classified as Shariah-
compliant by the SAC. For securities not certified by the SAC, the status of the securities has been
determined in accordance with the ruling issued by the Shariah Adviser of the Fund. For
information concerning risk factors which should be considered by prospective investors,
please refer to Chapter 4 , Risk Factors of this Prospectus.
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5.5 TEMPORARY DEFENSIVE POSITIONS
The Manager may also take temporary defensive positions that may be inconsistent with the Fund’s
principal strategy in attempting to respond to adverse economic and/or political conditions or potential
sharp downturn in the equities market that may be likely leading to substantial capital loss.
In such circumstances, the Manager may reallocate up to 100% of the Fund’s equity investments into other
permitted investments, including sukuk, Islamic money market instruments and/or Islamic deposit
placements.
5.6 RISKS OF INVESTING IN THE FUND
Please refer to Chapter 4 for detailed explanation of the risks involved.
5.7 RISK MANAGEMENT
The Manager adopts an active investment strategy to manage the risks of equity investment of the Fund.
The market volatility may lead to capital loss which affects the Fund’s return. Stock selection and
diversification of investment in equity securities are keys to mitigating the overall risk of the Fund.
The equity market risk of the Fund is prudently managed through the following strategies:-
a) Stock selection whereby the Manager employs fundamental approach to ensure selection of quality
Shariah-compliant equity which takes into account information gathered during company visits,
potential income and earnings growth, management quality and past track records of the
companies are considered; and
b) Diversification into different sectors that gives the Manager flexibility to move the Fund’s equity
exposure actively within the asset allocation range depending on capital market conditions. The
flexibility allows the Manager to remain invested during market upturns or liquidate investments
to preserve its capital during the market downturns.
To manage the stock specific risk of the Fund, in-depth company analysis is conducted. Stock selection is
based on stringent investment criteria which include the company’s financial strength, business operations
and management and good corporate governance. The Fund also takes into account trading liquidity to
manage the stock specific risk.
For investment in sukuk, credit evaluation and profit rate direction are the most critical risk factors to be
considered. As for credit evaluation, the designated fund manager has set stringent investment criteria in
assessing sukuk, covering mainly the nature of business, cash flow, gearing level, management and
collateralization. In case the Fund invests in such instrument, only investment grade sukuk rated by either
RAM or MARC will be considered. As for the profit/interest rate direction, the expected direction of Kuala
Lumpur Islamic Reference Rates (KLIRR) will be taken into consideration.
In addition, regular reporting to and consulting with the Investment Committee members are held at
periodical meetings. The reporting to the Investment Committee consists of, amongst others, the review on
the performance of the Fund and the relevant markets, immediate and future investment approach and
asset allocation strategy, and compliance status.
5.8 PERFORMANCE BENCHMARK
FBM Shariah Small Cap Index - FTSE Bursa Malaysia Shariah Small Cap Index.
Bursa Malaysia index that comprises of Shariah-compliant small cap constituents of the FBM EMAS that
meet the screening requirement of the SAC. You may obtain the information pertaining to the index from
Bursa Malaysia website and major daily newspapers.
Take note that the risk profile of the Fund is not similar to the risk profile of the performance benchmark.
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5.9 PERMITTED INVESTMENT
Unless otherwise prohibited by the relevant authorities or any relevant law and provided always that there
is no inconsistency with the objectives of the Fund, the Fund must invest strictly in the
investments/securities which comply with the Shariah principles and approved by the Shariah Adviser, the
SAC or an international Shariah standard setting body (if applicable) as follows:-
(a) investment in other collective investment schemes;
(b) participation in the lending of securities within the meaning of the SC’s Guidelines of Securities
Borrowing and Lending when permitted by the SC and other relevant authorities;
(c) securities that are traded in or under the rules of an eligible market which fulfil all the conditions set
out in the Guidelines on Unit Trust Funds;
(d) liquid assets which include cash, deposits with licensed institutions and/or other institutions licensed
or approved to accept deposits and any other instruments that can be converted into cash within
seven (7) days as may be approved by the Trustee;
(e) warrants, provided that the warrants carry the right in respect of a security traded in or under the
rules of an eligible market;
(f) derivatives:
(i) consist of derivatives that are traded on exchange and traded over-the-counter;
(ii) the underlying instruments should consist of permissible investments and include indices,
profit rates and foreign exchange rates.
(g) Structured Products, where the Manager must ensure that:
(i) the counter party is an eligible issuer (for Structured Products issued in Malaysia) or an
issuer regulated by the relevant regulatory authority (for Structured Products issued outside
Malaysia); and
(ii) the counter-party has a minimum long-term rating by any domestic or global rating agency
that indicates adequate capacity for timely payment of financial obligations.
5.10 INVESTMENT RESTRICTIONS AND LIMITS
The investments limits for the Fund are in line with the Guidelines as follows:-
a) Exposure Limits
The value of a Fund’s investment in unlisted securities must not exceed 10% of a Fund’s NAV.
b) Investment Spread Limits
i) The value the Fund’s investment in ordinary shares issued by any single issuer must not
exceed 10% of the Fund’s NAV.
ii) The value of the Fund’s investment in transferable securities and money market
instruments issued by any single issuer must not exceed 15% of the Fund’s NAV.
iii) The value of the Fund’s placement in deposits with any single institution must not exceed
20% of the Fund’s NAV.
iv) For investments in derivatives:
• the exposure to the underlying assets must not exceed the investment spread
limits stipulated under these limits; and
• the value of the Fund’s over-the counter (OTC) derivative transaction with any
single counter-party must not exceed 10% of the Fund’s NAV.
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v) The value of the Fund’s investment in Structured Products issued by a single counter-party
must not exceed 15% of the Fund’s NAV.
vi) The aggregate value of the Fund’s investment 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/institution must not exceed 25% of the Fund’s NAV.
vii) The value of the Fund’s investment in units/shares of any CIS must not exceed 20% of the
Fund’s NAV.
viii) The value of the Fund’s investment in transferable securities and money market
instruments issued by any group of companies must not exceed 20% of the Fund’s NAV.
c) Investment Concentration Limits
i) The Fund’s investment in transferable securities (other than debentures) must not exceed
10% of the securities issued by any single issuer.
ii) The Fund’s investments in debentures must not exceed 20% of the debentures issued by
any single issuer.
iii) The Fund’s investment in CISs must not exceed 25% of the units/shares in any one CIS.
iv) The Fund’s investment in money market instruments must not exceed 10% of the
instruments issued by any single issuer. (Note: This limit does not apply to money market
instruments that do not have a pre-determined issue size).
d) Allowance in Excess of Investment Limits
The above investment restrictions and limits have at all times to be complied with based on the
most up-to-date valuation of the investments and instruments of the Fund. However, a 5%
allowance in excess of any restriction or limit may be permitted where the restriction or limit is
breached through an appreciation or depreciation of the NAV of the Fund (whether as a result of an
appreciation or depreciation in value of the investments or as a result of repurchase of Units or
payment made from the Fund).
If the relevant limit is breached, due to the appreciation or depreciation of the NAV of the Fund, no
further acquisition of the particular securities involved shall be made. We shall, within a
reasonable period of not more than 3 months from the date of breach, take all necessary steps and
actions to rectify the breach.
5.11 VALUATION OF INVESTMENTS
In respect of the investments of the Fund, it is our policy for the valuation point for the assets of the Fund to
be valued on a daily basis at the end of business day, in accordance with their respective class and at all
times in compliance with the Guidelines.
a) Listed Securities
The valuation of securities listed on an Eligible Market will be based on the market price.
However, if–
i) a valuation based on the market price does not represent the fair value of the securities,
for example during abnormal market conditions; or
ii) no market price is available, including 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,
then the securities should be valued at fair value, as determined in good faith by the Manager,
based on the methods or bases approved by the Trustee after appropriate technical consultation.
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b) Unlisted Securities
The valuation of unlisted securities will be based on fair value as determined in good faith by the
Manager, based on the methods or bases approved by the Trustee after appropriate technical
consultation.
c) Unlisted Sukuk Denominated in Ringgit Malaysia
Unlisted sukuk denominated in Ringgit Malaysia will be based on price quoted by a Bond Pricing
Agency (BPA) registered with the SC. Where the Manager is of the view that the price quoted by
BPA for a specific sukuk differs from the market price by more than 20 basis points, the Manager
may use the “market price”, provided that the Manager-
i) records its basis for using a non-BPA price;
ii) obtains necessary internal approvals to use the non-BPA price; and
iii) keeps an audit trail of all decisions and basis for adopting the “market yield”.
d) Other Unlisted Sukuk
The valuation on other unlisted sukuk will based on fair value by reference to the average
indicative yield quoted by three independent and reputable institutions.
e) Unlisted Collective Investment Scheme
The value of the Units will be based on the last published repurchase price.
f) Islamic Money Market Instruments
The valuation for money market instrument are valued at market yields based on the remaining
days to maturity.
g) Islamic Deposit Placements
Deposits placed with banks and other financial institutions are valued each day by reference to the
nominal value and the profit accrued thereon for the relevant period.
h) Any Other Investment
The valuation on any other investment will based on fair value as determined in good faith by the
Manager, on methods or bases which have been verified by the auditor of the Fund and approved
by the Trustee.
5.12 POLICY ON GEARING
The Fund is prohibited from borrowing other assets (including borrowing securities within the meaning of
Guidelines on Securities Borrowing and Lending) in connection with their activities.
However, the Fund may borrow cash for the purpose of meeting repurchase requests for units subject to
the following –
a) The borrowing is only on a temporary basis and not persistent;
b) The borrowing period should not exceed one month;
c) The aggregate borrowing of the Fund should not exceed 10% of the Fund’s NAV at the time the
borrowing is incurred; and
d) The Fund may only borrow from financial institutions.
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5.13 SHARIAH-COMPLIANT AND SHARIAH APPROVAL PROCESS
The Fund must at all times and all stages of its operation comply with the Shariah principles. In the first
place, the Fund must be raised, operated and redeemed, if any, by investor on the basis of contracts which
are acceptable by Shariah.
In terms of investments, there are two significant Shariah-compliant matters that need to be adhered to.
First is the securities to be invested and secondly the companies of which the securities are issued. In
making investments, both securities and companies must be Shariah-compliant.
a) Capital Market Instrument
Since the establishment of the SAC, several capital market instruments have been evaluated and
approved. They are:
• Ordinary shares;
• Warrants/Transferable Subscription Rights (if the underlying is Shariah-compliant);
• Call warrants (if the underlying is Shariah-compliant);
• Non-cumulative preference shares;
• Redeemable preference shares;
• Crude palm oil futures contracts;
• Crude palm kernel oil futures contracts;
• Khazanah zero-coupon sukuk;
• Single Stock Futures (if the underlying is Shariah-compliant); and
• Futures Contract Index (if the index component is made up of Shariah-compliant
securities)
As for the Fund, investments in any of the above instruments depend on their respective objective
and investment strategy and the capital market instruments that are allowed to be used to achieve
the objective.
b) Shariah Adviser
The Guidelines stipulate that the Fund is required to appoint a Shariah committee or Shariah
adviser. At PMB Investment, we have appointed a Shariah Adviser whose details are in Section 8.9.
The investment portfolio of the Fund must invest only in Shariah-compliant
securities/instruments. As a general rule, for investment in equities, we use the approved List of
Shariah-compliant securities issued by the SAC (Approved List), which is currently updated in May
and November every year. However, in cases where the status of securities has not been
determined by the SAC due to reasons such as initial public offer, the interim status of the
securities will be determined by our Shariah Adviser in accordance with the SAC screening
methodology until such time when the SAC issues its ruling on the securities.
When investing in Islamic money market instruments, Islamic deposit placements, sukuk and/or
other permitted investments for the Fund, they must also be Shariah-compliant as determined by
the Shariah Advisory Council of Bank Negara Malaysia and/or the SAC, as the case may be.
c) Classification of Shariah Securities by the SC
For companies listed on Bursa Malaysia, the Fund’s investments must be strictly confined to the
companies on the prevailing Approved List.
In classifying the securities listed on Bursa Malaysia, the SAC received input and support from the
SC. The SC gathered information on the companies from various sources, such as company annual
financial reports, company responses to survey forms and through inquiries made to the respective
company’s management.
The SAC adopts a two-tier quantitative approach, which applies the business activity benchmarks
and the financial ratio benchmarks, in determining the Shariah status of the listed securities.
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Hence, the securities will be classified as Shariah-compliant if they are within the business activity
benchmarks and the financial ratio benchmarks.
Quantitative
Assessment
Shariah Screening
Methodology
Business Activity Benchmarks
Business activity
benchmarks
5%
Conventional banking and insurance, gambling,
liquor and liquor related activities, pork and pork
related activities, non-halal food and beverages,
Shariah non-compliant entertainment, interest
income from conventional accounts and instruments,
interest income awarded arising from a judgement by
a court or arbitrator, tobacco and tobacco interest
income from conventional accounts and instruments
(including interest income awarded arising from a
court judgement or arbitrator and dividends from
Shariah non-compliant investments) and other
activities deemed non-compliant according to
Shariah.
20% Hotel and resort operations, share trading,
stockbroking business, rental received from Shariah
non-compliant activities and other activities deemed
non-compliant according to Shariah.
Financial Ratio
Benchmarks
33% Cash over total assets: Cash will only includes 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 only includes interest-
bearing debt whereas Islamic financing or sukuk is
excluded from the calculations.
Each ratios, which is intended to measure riba and
riba-based elements within a company’s statements
of financial position, must be less than 33%.
In addition to the above two-tier quantitative criteria, the SAC also takes into account the
qualitative aspect which involves public perception or image of the company’s activities from the
perspective of Islamic teaching.
d) Special Purpose Acquisition Companies (SPACs)
In classifying securities of SPACs, SAC considers the following criteria:
i) The proposed business activity should be Shariah-compliant;
ii) The entire proceeds raised from the initial public offering should be placed in Islamic
accounts; and
iii) In the event that the proceeds are invested, the entire investment should be Shariah-
compliant.
Shariah-compliant securities include ordinary shares and warrants (issued by the companies
themselves). This means that warrants are classified as Shariah-compliant securities provided the
underlying shares are also Shariah-compliant. On the other hand, loan stocks and bonds are
Shariah non-compliant securities unless they are structured based on the SAC’s approved Shariah
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rulings, concepts and principles. The Fund may invest less than 5% of its NAV in the securities of
the SPACs, if any.
e) Timing for disposal of Shariah non-compliant securities
i) “Shariah-compliant securities” which are subsequently re-classified as “Shariah
non-compliant”
These refer to securities which were earlier classified as Shariah-compliant but due to
certain factors such as changes in the companies’ business operations and financial
positions, are subsequently reclassified as Shariah non-compliant, the Fund must liquidate
the securities if the market price of the securities held exceeds or is equal to the
investment cost. Any dividends received up to the date of the announcement and capital
gains arising from the disposal of Shariah non-compliant securities on the date of the
announcement can be kept by the Fund. However, any dividends received and excess
capital gain from the disposal of Shariah non-compliant securities after the date of the
announcement should be channeled to baitulmal and/or charitable bodies.
On the other hand, the Fund is allowed to hold their investment in the Shariah non-
compliant securities if the market price of the said securities is below the investment cost.
It is also permissible for the Fund to keep the dividends received during the holding period
until such time when the total amount of dividends received and the market value of the
Shariah non-compliant securities held equal the investment cost. At this stage, the Fund
will dispose of their holding.
In addition, during the holding period, the Fund is allowed to subscribe to:
• any issue of new securities by a company whose Shariah noncompliant securities
are held by the Fund, for example rights issues, bonus issues, special issues and
warrants (excluding securities whose nature is Shariah non-compliant e.g. loan
stocks); and
• Shariah-compliant securities of other companies offered by the company whose
Shariah non-compliant securities are held by the Fund, on condition that the Fund
expedites the disposal of the Shariah non-compliant securities.
ii) Shariah non-compliant securities
The Fund is advised to dispose of any Shariah non-compliant securities which they
presently hold, within a month of knowing the status of the securities. Any gain made in
the form of capital gain or dividend received before or after the disposal of the securities
has to be channeled to baitulmal and/or charitable bodies. The Fund has a right to retain
only the investment cost.
Note: Investment cost may include brokerage cost or other related transaction cost.
f) Foreign Shariah-compliant Securities
For investment in foreign securities, the Fund is only allowed to invest in securities which are on
the Approved List of the Dow Jones Islamic Market Index (DJIM). With regard to the issue of
delisting of Shariah-compliant securities from DJIM and Shariah non-compliant foreign securities,
the Fund is to abide by the same processes as laid down by the SAC above. In the rare event that
the Fund wishes to invest in foreign securities not covered by DJIM, the Fund must submit to the
Shariah Adviser the latest information pertaining to business activities, complete financial
statements and other related information on the relevant company to enable the Shariah Adviser
to carry out stock screening. The decision of the Shariah Adviser is final.
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6. FEES, CHARGES AND EXPENSES
6.1 CHARGES
Charges payable by the investors directly when investing in the Fund, are as below –
In calculating the charges imposed, any adjustments for rounding up would only be conducted once at the
charges level and only up to 4 decimal places.
Notes:
i) The Manager may, at its discretion, charge a lower sales charge based on criteria as may be
determined from time to time.
ii) All the above charges are subject to the goods and services tax (GST) currently at the rate of 6.0% (You
may refer to Section 13.9 on the GST).
a) Sales Charge
Below is an illustration on how the sales charge is calculated:-
Investment amount in PMB SSCF : RM10,000
NAV per unit : RM0.5000
Sales charge : 6.0% of NAV per unit
Units issued to Unit Holder = Investment amount
NAV per unit
= RM10,000
RM0.5000
= 20,000 units
Sales charge per unit = NAV per unit x Sales charge (%)
= RM0.5000 x 6.0%
= RM0.0300
Total sales charge* = 20,000 units x RM0.0300
= RM600.00
Please note that the above example is for illustration purposes only.
*Note: In addition, the above charge is subject to the GST currently at the rate of 6.0%.
b) Repurchase Charge
We do not impose any repurchase charge when you redeem your units.
There are fees and charges involved and investors are advised to consider them before investing
in the Fund.
Charges Distribution Channel(s) % of the NAV
Sales charge per unit IUTA, UTC & direct purchase with Manager 6.0%
Repurchase charge per
unit IUTA, UTC & direct repurchase with Manager Nil
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c) Transfer Fee
Up to RM10 per transaction (excluding stamp duty).
Note: In addition, the above fee is subject to the GST currently at the rate of 6.0%.
d) Switching Fee
This facility enables Unit Holders to switch units from PMB SSCF to other funds managed by the
Manager which is available for sale. Units switched are transacted at the Fund’s NAV per unit. The
minimum investment that can be switched in each transaction is RM1,000. The conditions for
switching are set out below:-
Switching
fee*
The charges for switching are set out below:
To
From
Equity
funds
Mixed Asset/
Balanced
fund
Money Market
fund
PMB SSCF RM25 per
transaction
RM25 per
transaction Nil
*Note: In addition, the above fee is subject to the GST currently at the rate of 6.0%.
6.2 FEES
When investing in the Fund, you may also incur indirect fees which are charged to the Fund as follows:-
a) Annual Management Fee
The annual management fee is calculated daily at 1.5% per annum of the NAV of the Fund, before
accruing the management fee and the trustee fee on the valuation point.
The computation of the annual management fee for a particular date based on the following
method:-
(NAV before accruing the management fee and the trustee fee
on the valuation point) X (the rate of management fee)
Number of days in a year
Assuming the NAV before accruing the management fee and trustee fee on a particular date is
RM280,000.00 and the rate of management fee for the relevant fund is 1.5% per annum, the
amount of the management fee charged for that particular date would be:-
Management Fee* = RM280,000.00 X 1.5% /365 days
= RM11.51
*Note: In addition, the above fee is subject to the GST currently at the rate of 6.0%.
b) Annual Trustee Fee
The annual trustee fee is calculated daily at 0.05% per annum of the NAV, before accruing the
annual management fee and the trustee fee accrued on the valuation point. The computation of the
annual trustee fee for a particular date is based on the following method:-
(NAV before accruing the management fee and the trustee
fee on the valuation point) X (the rate of trustee fee)
Number of days in a year
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PMB Investment Berhad
Assuming the NAV before accruing the management fee and trustee fee on a particular date is
RM280,000.00 and the rate of trustee fee for the relevant fund is 0.05% per annum, the amount of
the trustee fee charged for that particular date would be:-
*Note: In addition, the above fee is subject to the GST currently at the rate of 6.0%.
6.3 EXPENSES
The Fund may incur the following operational and administrative expenses: -
a) Commissions/fees paid to brokers/dealers in effecting dealings in the investments of the Fund
shown on the contract notes or confirmation notes;
b) Charges/fees paid to sub-custodian (for foreign investments only);
c) Tax and other duties charged on the Fund by the Government and other authorities;
d) The fees and other expenses properly incurred by the auditor appointed for the Fund;
e) Fees for the valuation of any investments of the Fund by independent valuers for the benefit of the
Fund;
f) Cost of printing the annual/interim reports;
g) Costs incurred for the modification of the Deed of the Fund other than those for the benefit of the
Manager and/or Trustee;
h) Cost incurred for any meeting of the Unit Holders other than those convened by, or for the benefit
of, the Manager and/or Trustee; and
i) Any other fees/expenses permitted by the Deed.
Expenses related to the issuance of this Prospectus will be borne by the Manager.
*Note: In addition, the above expenses are subject to the GST currently at the rate of 6.0%.
6.4 REBATE AND COMMISSION
The Manager and the Trustee are not entitled to any rebates or to share any commission from broker in
consideration for direct dealings in the investments of the Fund. Accordingly, any rebates and shared
commissions will be directed to the account of the Fund.
However, we may receive goods or services by way of soft commissions provided always that the goods or
services are of demonstrable benefit to the Fund and that the execution of a transaction is consistent with
the best execution standards.
Trustee Fee* = RM280,000.00 X 0.05% / 365 days
= RM0.38
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PMB Investment Berhad
7. TRANSACTION INFORMATION
7.1 TRANSACTION DETAILS
a) How to Start Investing
Please read and understand the Prospectus (and any supplementary prospectus) and Product
Highlight Sheet (PHS) before investing. You must attain the age of at least 18 on the date of
application. If you fulfill this requirement, all you have to do is to complete the FIMM Pre-
Investment Form, as well as PMB Investment’s Suitability Assessment Form and Master
Application Form for initial account opening. In addition, you need to complete the Investment
Request Form for buying transaction together with a photocopy of your NRIC or any related
document.
b) How to Conduct Subsequent Transaction
For subsequent transaction, simply complete the Investment Request Form (to make additional
investment). If your completed Suitability Assessment Form is done more than three (3) years
prior to this transaction, you need to do a new assessment.
c) Application and Acceptance
Application of units should be made before the cut-off time at 3.00 p.m. with cleared payment on
any business day. The units will be issued at NAV per unit calculated at the end of the business day
(i.e. “forward pricing”) on which the application to purchase is received by the Manager. Any
application received after the cut-off time, the request will be deemed to have been received on the
next business day. We reserve the right to vary the terms and conditions of investment and
payment modes from time to time, which shall be communicated to you in writing. Note that we
reserve the right to reject any application without providing any reason, whatsoever. We may also
reject any application that is not complete and/or not accompanied by the required documents. We
do not accept application from any US person.
d) Statement of Investment
An investor is recognized as a registered Unit Holder by PMB Investment upon receipt of payment
(in PMB Investment’s account) together with completed investment application form and other
relevant supporting documents. The Manager will then issue a statement of investment within 14
HOW CAN YOU KEEP TRACK OF YOUR INVESTMENT
The annual and interim reports with information on the performance and investments of the Fund
are issued to unit holders of the Fund within two (2) months from the closing of its respective
interim and financial year periods.
You may obtain our latest information, our products and services, and market outlook at our website
pmbinvest.com.my. Our officers will provide you with more specific information on your investments
should you require such a service.
You may communicate with us via :
• Investor Relation Careline: (03) 2785 9900
• Email: [email protected]
• Website: Complete the feedback form at pmbinvest.com.my
You may also walk-in to the Head Office or any of our regional offices during normal business hours,
8.45 a.m. to 5.15 p.m. Mondays to Fridays (excluding public holidays) or write to the same. Fund
prices will be published daily on our website.
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days of receipt of the aforesaid documents provided that the application monies have cleared.
Investment certificate will not be issued in respect of purchase of units.
7.2 PAYMENT METHODS
a) Via Cheque, Bank Draft or Money Order
Payment can be made by cheque, bank draft or money order drawn on a bank located in Malaysia
in Ringgit Malaysia (RM), crossed, made payable to “PMB Investment Berhad”. Applicants are to
write their name and NRIC number or passport number or corporate/institutional registration
number at the back of the cheque, draft or money order. Application shall be processed based on
the net amount received. Where payment is by cheque, the cheque must be issued by the investor.
b) Via Bank Transfer Services (Telegraphic Transfer/Inter-Bank GIRO/Online Banking)
Applicants may transfer the subscription proceeds directly into the bank account of PMB
Investment Berhad via telegraphic transfer/inter-bank GIRO/online banking. Please include
applicant’s name in the transaction description where applicable for reference.
Details of our principal bank accounts are as follows:
Bank Account number
Maybank Islamic Berhad 5-64342-00013-8
Public Islamic Bank Berhad 3810755226
CIMB Islamic Bank Berhad 8600006139
Bank Muamalat (Malaysia) Berhad 14010003688717
Bank Islam (Malaysia) Berhad 14153010008206
c) Via Auto debit
You may choose to invest on a regular basis through a bank auto-debit (standing instruction)
facility at the following financial institutions:-
i) Bank Simpanan Nasional
ii) CIMB Bank Berhad
iii) Malayan Banking Berhad/Maybank Islamic Berhad
iv) RHB Bank Berhad/RHB Islamic Bank Berhad
d) Via Salary Deduction
If you are a Government servant, you can invest regularly by applying for the salary deduction
instruction through ANGKASA. If you are in the private sector, you may check with your employer
on the Employee’s Salary Deduction Scheme for a regular monthly investment.
7.3 COOLING-OFF POLICY
A first time investor with the Manager shall have the cooling-off right, within 6 business days, (commencing
from the day the completed application is received and accepted by the Manager) to withdraw his/her
investment in the fund. However, this cooling-off period does not apply to corporations or institutions, staff
of the Manager and a person registered with a body approved by the SC to deal in unit trusts.
Investors are advised not to make payment in cash when purchasing units of the Fund via any
institutional/retail agent.
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PMB Investment Berhad
An investor who exercises his/her right to withdraw during the cooling-off period is entitled to receive a
full refund of the money initially invested i.e.:-
a) the NAV per unit on the day the units were first purchased; plus
b) the sales charge per unit originally imposed on the day the units were purchased.
The money payable out of this transaction must be refunded to the investor within 10 days of the Manager’s
receipt of the repurchase request.
7.4 REPURCHASING/REDEEMING AN INVESTMENT
You may redeem all or some of the units held on any business day by completing a Transaction Form
together with a photocopy of your NRIC.
a) Redemption
i) For a request to redeem units received or deemed to have been received by us on or
before 3.00 p.m. on any business day, units will be redeemed at the NAV per unit
calculated at the end of business day on which the request was received (“forward
pricing”).
ii) Where the repurchase request is received after the cut-off time, i.e. after 3.00 p.m., the
request will be deemed to have been received on the next business day.
iii) Payment will be made within 10 days of the receipt of redemption request.
iv) We reserve the right to vary the terms and conditions of repurchase/redemption mode
from time to time, which shall be communicated to you in writing.
b) General
i) No restriction on the frequency of redemption.
ii) There is no minimum number of units for redemption but a Unit Holder must retain at
least RM100 upon partial redemption.
iii) No redemption fee is charged. However, any applicable bank charges and other bank fees
incurred as a result of a withdrawal by way of telegraphic transfer, bankers cheque or
other special payment method will be borne by the Unit Holder.
iv) If the units are held in the names of more than one Unit Holder, where mode of holding is
specified as “Joint Application”, redemption request will have to be signed by all the joint
holders unless the joint applicant is a minor.
7.5 CHANNELS TO PURCHASE AND REDEEM UNITS
You may refer the address of our Head Office and list of our regional offices in Section 13.16.
7.6 SWITCHING BETWEEN FUNDS
a) Switching is a facility which enables you to convert units of a particular fund for the units of our
other funds. Simply complete the Transaction Form. Unit Holders are required to enclose the
certificate of investment (if any) upon switching.
b) All Unit Holders are allowed to switch from one fund to any other funds managed by the Manager.
The minimum amount you can switch is RM1,000.
c) Switching fee is as per condition below:
i) No switching fee will be imposed if switching is made to fund with lower or no sales
charge (e.g. equity fund to money market fund).
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PMB Investment Berhad
ii) RM25 per transaction if the sales charge of the fund to be switched into is equal to the
sales charge of the fund from which switching is made (e.g. equity fund to balanced fund).
iii) At sales charge if the sales charge of the fund to be switched into exceeds the sales charge
of the fund from which switching is made (e.g. money market fund to equity fund).
However, if the originating fund from which switching is made is from an equity or
balanced fund, the switching fee shall be RM25 only.
iv) In addition, you shall be liable to pay any Goods and Services Tax imposed on you by virtue
of any law, regulation, directive or order by any governmental authority in relation to the
switching fee.
v) The Manager reserves the right to reject any switching request:
• that it regards as disruptive to efficient portfolio management; or
• if deemed by the Manager to be contrary to the best interest of the affected Fund.
d) To switch between the funds managed by the Manager, you can simply complete the switching
form at the Manager’s Head Office, Regional and Agency Offices.
(Please refer to Section 6.1 for switching charges).
7.7 TRANSFER OF UNITS
a) An investor may transfer some or all of the units held to another investor by completing a Transfer
Form. Subject to the provisions of the Deed, transfer of unit can be made provided that the units
registered thereof are not less than the minimum prescribed number of units.
b) In the case of a death, bankruptcy or insanity, the units shall be transferred to the
remaining/surviving joint holder provided that the age of remaining / surviving joint holder, if any,
is at least 18 years old, or to the executors or administrators of the deceased and subject to the
applicability of any Shariah principles (for Muslim investors).
c) Both the transferor (the Unit Holder) and transferee must complete the Transfer Form and submit
it to the Manager together with the certificate or any supporting document to prove the title of the
transferor. The Manager may refuse to register a transfer of less than RM100 or where the balance
in the transferor’s holding is less than RM100 in value at the time of transaction or any other
amount as may be determined by the Manager from time to time.
d) The transfer shall be affected within 30 days from the date of receipt of the request. A fee of not
exceeding RM10.00 will be charged for a transfer of units. In addition, you shall be liable to pay any
GST imposed on you by virtue of any law, regulation, directive or order by any governmental
authority in relation to the transfer fee.
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7.8 A QUICK GUIDE ON HOW TO BUY, SELL, SWITCH & TRANSFER
How to Documents Required Minimum amount
Make an
Initial
Investment
Individual Investor:
• Pre-Investment Form by FIMM (for every new
fund);
• Suitability Assessment Form;
• Master Application Form;
• Investment Request Form;
• A photocopy of NRIC/Passport (if applicant is
Malaysian resident or foreigner)
Corporate investor:
• Master Application Form;
• Pre-Investment Form by FIMM (for every new
fund);
• Suitability Assessment Form;
• Investment Request Form;
• A copy of each of the company’s resolution
and certificate of incorporation (certified by a
director or company secretary);
• List of authorised signatories and specimen
signatures; and
• Form 8 or 9, 13, 49 or other documents, if
required
Completed forms and documents required
should be submitted together with payment or
proof of payment.
For Initial investment:
• Direct purchase:
RM100
Make
Additional
Investment
Individual Investor
• Investment Request Form; and
• A copy of NRIC/passport
Corporate Investor:
• Investment Request Form signed by
authorized signatories and company stamp;
and
• Board Resolution or any other necessary
authorization.
Completed forms and documents required
should be submitted together with payment or
proof of payment.
For additional investment:
• Direct purchase & Auto
debit:
- RM50
Redeem,
Switching
and Transfer
Individual Investor (single/joint applicant )
Redeem/Switching
• Transaction Form;
• A copy of NRIC/passport; and
• Pre-Investment form
(For switching to new fund)
For both individual and
corporate investor
Repurchase/redemption:
• No minimum number of
units; however, upon partial
redemption/repurchase, at
least RM100 value at the
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PMB Investment Berhad
Transfer
• Transfer Form; and
• A copy of NRIC/passport
Corporate Investor
Redeem/Switching
• Transaction form;
• Signed by authorized signatories and
company stamp; and
• Board Resolution or any other necessary
authorization
point of transaction should
be retained.
Switch & Transfer:
• At least RM1,000 per
transaction.
• For transfer of units, the
minimum amount may be
determined by the Manager
from time to time.
7.9 INCOME DISTRIBUTION AND REINVESTMENT POLICIES
a) Income Distribution
Income of the Fund includes dividends from shares, profit from deposit placement and debt income
securities, and capital gains realized from the disposal of investments in the Fund. The Fund may
distribute all or part of its net income and or net realized capital gains to its Unit Holders at the
discretion of the Manager, subject to the Trustee’s approval. Potential investors are however
advised that the distribution is subject to the Deed and the objective of the Fund, and after taking
into consideration the total return of the Fund, income for the period, cash flow of the distribution,
and stability and sustainability of the distribution of return.
Income distribution will be paid to eligible Unit Holders via
i) cheques; or
ii) e-payment to the Unit Holder’s bank account.
In certain cases, upon presentation to the depositing banks or financial institutions, the cheques
may attract bank commission or transaction charges which will be borne by the Unit Holders.
The income distributed may be in the form of ‘units’ instead of cash. A statement of the distribution
of units will be delivered to the Unit Holder within a reasonable time period, as permitted by the
Guidelines.
b) Unit Split
The Fund may undertake a unit split exercise to reduce the price of the units and this can only be
conducted once in every 12 month-period. The unit split exercise may be conducted at the time of
the distribution of return or at any time within the financial year. Where the exercise is conducted
within the financial year, the Fund needs to show a sustainable appreciation in its NAV in the
preceding 6-month period.
c) Reinvestment Policies
Reinvestment instruction of income distribution may be applied by Unit Holders by marking the
instruction in the application form. The distribution will be credited to the Unit Holder’s
investment account. The value of the reinvestment of distribution will be equivalent to the NAV per
unit on the first business day following the Distribution Date. No charge will be imposed on the
distribution reinvestment.
However, if a Unit Holder wishes to reinvest the distribution upon receipt of distribution
warrants/cash, such distribution reinvestment will be treated as normal sales of units.
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d) Auto Reinvestment
Auto reinvestment will be applied to the followings:
i) Distribution amount of less than RM50, which will be reinvested at the unit price
equivalent to the NAV per unit computed at the end of the next business day following the
Distribution Date. No additional charge will be imposed on the distribution reinvestment.
ii) Fund’s distribution of income is by way of units, irrespective of the standing instruction
given by the Unit Holders to the contrary.
iii) Unit Holder should notify the Manager of their option for reinvestment and any change of
address within fourteen (14) business days prior to each distribution date.
e) Unclaimed Distribution
Distributions (if any) if not claimed within 12 months after the date of payment will be sent to the
Office of Registrar of Unclaimed Monies, Accountant General’s Department as required under the
Unclaimed Monies Act 1965 (as may be amended).
7.10 DETERMINATION OF PRICE
a) Forward Pricing
The price of units of the Fund is determined based on the NAV per unit as at the next valuation
point after a request for sales or repurchase of Units is received by the Manager.
Dealing cut-off time for any units to be issued and/or redeemed shall reach the Manager before
3.00 p.m. on the business day. Any applications received after the cut-off time will be treated as
received on the following business day.
b) Single Pricing Regime (SPR)
According to the SPR, the creation, cancellation, selling and buying/repurchase prices for Units
would be the NAV per unit on any transaction. For example, the NAV per Unit during a particular
date is RM0.23375 (before 4 decimal rounding adjustments).
NAV per unit = Buying price per unit
= RM0.2338 (rounded to 4 decimal places
c) Computation of NAV and NAV Per Unit
The NAV of the Fund is determined by deducting the value of the Fund’s liabilities from the value of
the Fund’s assets, at a valuation point.
Illustration :
For illustration purposes, assuming the figures of a relevant day are as below:
Value of the Fund’s Assets = RM100,000,000.00
Value of the Fund’s Liabilities = RM500,000.00
Units in Circulation = 150,000,000
Annual Management Fee = 1.5% per annum
Annual Trustee Fee = 0.05% per annum
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The NAV of the Fund will be:
RM
Fund’s asset 100,000,000.00
Less: Fund’s liabilities (500,000.00)
Net asset value (before annual management fee & trustee fee) 99,500,000.00
Less: Management fee (1.5% per annum) (4,089.04)
Trustee fee (0.05% per annum) (136.30)
NAV of the Fund of the day (before GST) 99,495,774.66
Less: GST of 6% on the management fee (245.34)
GST of 6% on the trustee fee (8.18)
NAV of the Fund of the day (after GST) 99,495,521.14
The NAV per unit of the Fund will be:
NAV per unit = NAV of the Fund / Unit in Circulation
= RM 99,495,521.14/ 150,000,000
= RM 0.66330347426 (before rounding adjustment)
= RM 0.6633 (rounded to 4 decimal points)
d) Amount Payable Upon Sales of Units
Units will be sold at the NAV per unit of the Fund. Any sales charge payable by the Unit Holder
would be calculated as a percentage of the NAV per unit of the Fund.
For illustration purposes, assume the following;
Price/ NAV per unit = RM0.5000
Sales charge per unit = 6.0%
Goods & Services Tax = 6.0%
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Purchase of 10,000 units Purchase with proceeds of RM10,000
Amount
invested
= Units purchased x Price per
unit
Sales charge
with GST
= Sales charge + (Sales charge x
6.0%)
= 10,000 x RM0.5000 = 6% + (6% x 6%)
= RM5,000.00 = 6.36%
Sales charge = Price per unit x Sales charge
per unit x Units purchased
Amount payable
per unit
= Price per unit + (Price per unit
x Sales charge with GST)
= RM0.5000 x 6.0% x 10,000
units
= RM0.5000 + (RM0.5000 x
6.36%)
= RM300.00 = RM0.5318
GST = Sales charge x 6.0% Units received = Proceeds / amount payable
= RM300.00 x 6.0% per unit
= RM18.00 = RM10,000-00/RM0.5318
= 18,804.06 units
Total payable = Amount invested + Sales
Charge + GST Amount invested = Units received x price per unit
= RM5,000.00 + RM300.00 + = 18,804.06 x RM0.5000
RM18 = RM9,402.0305
= RM5,318.00 = RM9,402.03 (to the nearest 2
decimal points)
Sales charge = 18,804.06 x RM0.5000 X 6.0%
= RM564.1218
= RM564.12 (to the nearest 2
decimal points)
GST = RM564.12 x 6.0%
= RM33.8475
= RM33.85 (to the nearest 2
decimal points
Total payable = Amount invested + Sales
charges + GST
= RM9,402.03 + RM564.12 +
RM33.85
= RM10,000.00
e) Amount Received Upon Repurchase of Units
As the redemption or buying price per unit of the Fund is equivalent to the NAV per unit, the total
amount received upon a repurchase of units will be equivalent to (the number of units redeemed x
the redemption price or buying price per unit) less (redemption charge x number of units
redeemed.) However, PMB Investment does not imposed any charges on redemption during the
lifetime of this Prospectus.
Illustration of Amount Received upon Redemption of units is shown below:-
Amount received = (units redeemed) x (redemption price or buying price per unit) –
(redemption charge x number of units redeemed)
= (10,000 units x RM0.5000) – (0 x 10,000 units)
= RM5,000
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f) Incorrect Pricing
In the case of pricing discrepancies in the calculation of NAV occurs, the Manager will take
immediate remedial action to rectify the Unit pricing at the Fund’s level. The money will be
reimbursed to the Unit Holder if the error is more than 0.5% of the Unit NAV or RM10.00 in
absolute amount. Nevertheless, for a reimbursement of a lesser amount will be up to the
Manager’s discretion.
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PMB Investment Berhad
8. MANAGEMENT OF THE FUND
8.1 THE MANAGER’S PROFILE
PMB Investment Berhad (PMB Investment), formerly known as ASM Investment Services Berhad
(ASM Investment), is a wholly owned subsidiary of Pelaburan MARA Berhad (PMB). Its principal
activities are unit trust and funds management. It is an Islamic fund management company.
Incorporated on 15 January 1993 under the Companies Act, 1965 as ASM MARA Unit Trust
Management Berhad (ASM MARA Unit Trust), PMB Investment assumed the unit trust operations
from PMB, then known as Amanah Saham MARA Berhad (ASMB), and its related staff. This was
done following the requirement of the Securities Commission Act, 1993 that unit trust funds are to
be managed by a unit trust management company. PMB commenced operations in the late 1967
and its first unit trust fund was established on 6 April 1968 which is now known as PMB Dana Al-
Aiman.
ASM MARA Unit Trust had its name changed to ASM Investment on 9 October 2006 and it took over
the fund management operations of ASM Asset Management Sdn Bhd, another wholly-owned
subsidiary of PMB, to streamline the unit trusts and funds management activities of the group. ASM
Investment had its name changed to PMB Investment on 28 February 2014.
PMB Investment is licensed under the Capital Markets and Services Act, 2007 and its licence was
converted to an Islamic fund management company on 28 November 2014. It appointed Amanie
Advisors Sdn Bhd in Dec 2014 as its Shariah adviser.
The company has an authorised capital of RM10 million, of which RM6 million has been fully paid.
The PMB group concern has more than 45 years of experience in managing unit trust funds.
As at 30 November 2015, PMB Investment managed 13 unit trust funds and 2 wholesale funds
valued at RM312 million. Total fund size under management for unit trust funds, wholesale funds
and portfolio mandates was RM1.169 billion as at end November 2015.
8.2 BOARD OF DIRECTORS
a) Datuk (Dr) Zamani bin Md Noor - Independent /Chairman
b) Dato’ Sri Haji Rahim bin Haji Abdul - Independent
c) Professor Dr. Faridah binti Haji Hassan - Independent
d) Haji Mansoor bin Ahmad - Independent
e) Dato’ Mohamad Safie bin Haji Asnawi - Independent
f) Nik Mohamed Zaki bin Nik Yusoff - Independent
g) Ahmad Nazim bin Abd Rahman - Non-Independent
h) Ameer Ali bin Vali Mohamed - Non-Independent /Chief Executive Officer
8.3 MANAGEMENT TEAM
a) Ameer Ali bin Vali Mohamed
Ameer is the Chief Executive Officer of PMB Investment. He joined the Manager on 2 April 2012
and brought with him more than 20 years of experience in the capital markets, having entered into
the securities industry in December 1990 as an investment analyst. He held positions in research
analysis and portfolio management including as fund manager of the then Arab-Malaysian Unit
Trusts Berhad; senior manager of Affin Fund Management Sdn Bhd; head of investment – external
clients for Mayban Investment Management Sdn Bhd before entrusted to establish and head its
Business Development Department; and CEO/CIO of OSK Asset Management Sdn Bhd. Prior to
joining PMB Investment, he was the CE/Managing Director of Amanah Saham Kedah Berhad.
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Among others, Ameer was the second-man in a team that was involved in the development of
Malaysia’s first privately managed Islamic equity unit trust fund that was launched in early 1993.
He was the first batch graduate of Bachelor of Business Administration (Hons) degree from the
International Islamic University Malaysia, where he graduated in 1988 with second class upper
honours. He started as a financial journalist with the then Business Times before entering into the
securities industry. He is the holder of a Capital Market Services Representative Licence (Islamic
fund management).
b) Isnami bin Ahmad Mohtar
Isnami was appointed Acting Chief Investment Officer effective on 10 April 2014. He has more than
15 years of experience in the funds management industry, starting in 1996 when he was appointed
Senior Investment Officer at PMB Investment to manage some Bumiputera funds. He was
subsequently promoted to Portfolio Manager in 2000 and was given larger responsibilities to
manage Shariah and conventional unit trust and corporate funds. He was made Senior Manager,
Fund Management in 2003. He joined Inter-Pacific Asset Management Sdn Bhd in August 2007 as a
Fund Manager, managing unit trust and corporate funds. He rejoined PMB Investment in April
2010 and was re-designated Head, Equity in January 2013. Isnami holds a Bachelor of Science
degree in Business Administration (Finance) from University of North Carolina at Charlotte, USA.
He is the holder of a Capital Markets Services Representative Licence (Islamic fund management).
c) Zulkefli bin Tan Sri Yahya
Zulkefli is the Chief Sales Officer and joined the company on 7 January 2015. He is responsible for
the overall sales of the company. He brought with him an extensive experience in marketing and
sales of financial products and services. Prior to joining PMB Investment, he was with Affin Fund
Management Berhad for 3 years as Vice President, Business Development and Marketing. He was
once the GM/CEO of Asia Unit Trusts Berhad (1995-2001) and CEO of Amanah Ventures Berhad
(2001-2004), responsible primarily for product development and expanding assets under
management. He graduated with a B.A in Social Science (Economics/Law) from Canberra College of
Advanced Education.
d) Mohd Adzhar bin Abd Hamed
Adzhar is the Deputy General Manager/Head, Compliance and Risk Management, PMB and he
oversees PMB Investment’s compliance with the related statutory and regulatory requirements
and risk management. He possesses a Diploma in Banking Studies from UiTM and a Bachelor of
Corporate Administration (Hons) from the same university. He joined PMB on 1 March 2000. Prior
to that, he was attached with one of the leading financial institutions in Malaysia for almost 6 years.
He is the designated Compliance Officer of PMB Investment, and registered with the SC.
e) Marina binti Ghazali
Marina is the Head of Marketing. She holds a Diploma in Mass Communication from UiTM. She has
more than 25 years of experience in marketing communications including public relations,
advertising and promotion. Currently, Marina manages the functions of investor relations,
strategic marketing, advertising and promotion. Prior to joining PMB Investment, she was attached
to PMB as the Head of Human Resource Development and Corporate Communication. Marina was
also with Park May Berhad (1995 – 1997) and a government agency (1988 – 1994).
f) Aida binti Abu Bakar
Aida is the Head of Fund Administration. She joined the PMB in 1997 as a Senior Executive, Projects
and Venture Capital. In 2000, she was transferred to PMB Investment and has since accumulated
more than 13 years of experience in unit trust, attached to several departments within the
company covering product research and development, business development, investment, unit
trust operations, marketing and promotion, customer administration and services, and agency
services. She has been instrumental in developing and launching PMB Investment’s Shariah retail
products and experience in merger, liquidation and conversion of unit trust schemes. Currently she
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PMB Investment Berhad
manages the functions of product development, trust administration and trust governance of PMB
Investment. She started her career in 1995 with a public listed company, Kumpulan Guthrie Berhad
where she gained exposure in accounting and finance. She holds a Master of Business
Administration from University of Wales, United Kingdom and a Bachelor of Arts in Accounting and
Financial Management from University of Essex, United Kingdom.
g) Marlina binti Hj. Bustanuddin
Marlina is the Manager, Accounts of PMB Investment. She is responsible for the overall function of
the company accounts, unit trust accounts and portfolio accounts. She obtained her Bachelor of
Accountancy from UiTM in June 2001 and Diploma in Accountancy from the same university in
November 1998. She is also a member of the Malaysian Institute of Accountants (MIA). Marlina has
been with the PMB Investment since 2007.
8.4 SUMMARY OF FINANCIAL POSITION
Audited Year 31 December (RM’000)
2014 2013 2012
Authorized Capital 10,000 10,000 10,000
Paid-up Capital 6,000 5,000 5,000
Share Premium 1,000 1,000 1,000
Shareholders’ Funds 10,550 11,161 12,626
Turnover 106,861 82,638 219,133
Pre-tax Profit/ (Loss) 185 (1,049) 970
After Tax Profit 185 (1,049) 956
8.5 ROLES, DUTIES AND RESPONSIBILITIES OF THE MANAGER
PMB Investment is responsible for the day-to-day management of the Fund, in accordance with the
provision of this Prospectus (as amended from time to time) the Deed, Act and the Guidelines on
Unit Trust Funds. Our main functions, duties and responsibilities include but not limited to the
following:-
a) Marketing, distribution, sale and repurchase of units of the Fund;
b) Maintenance of proper records of the Fund;
c) Distributing annual and interim reports of the Fund;
d) Providing customer services;
e) To ensure that the interests of the Unit Holders are best served and protected at all times;
f) To formulate and propose the portfolio strategy in line with the Fund’s investment objective
and Investment Committee direction;
g) To review the performance and portfolio composition of the Fund and to make the necessary
recommendations thereof to the Investment Committee;
h) To review the market trend (both local and international) and make the necessary
recommendation to the Investment Committee;
i) To recommend stocks or other investment instruments in line with the Fund’s objectives;
j) To undertake in depth market and company research so as to assist the Investment
Committee in their decision making; and
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PMB Investment Berhad
k) To be responsible for the day to day management of the Fund consistent with the Guidelines
and the direction of the Investment Committee.
8.6 MANAGER’S DELEGATE
PMB Investment has delegated the following functions to Pelaburan MARA Berhad (PMB):
a) Information Technology
b) Human Resource Development
c) Corporate Communications
d) Administration
e) Compliance
f) Operational Risk Management
g) Internal Audit
h) Business Strategy and Planning
PMB is a strategic investment and asset management company wholly-owned by Majlis Amanah
Rakyat (MARA), a statutory agency of the Government of Malaysia. Established on 24 June 1967,
PMB is principally involved in private equity investments, portfolio fund management, unit trust
management, financial services and corporate advisory. PMB is the parent company of PMB
Investment.
The roles and responsibilities of PMB, being the delegate of the Manager, are –
a) to ensure that the functions are discharged in effective and efficient manners;
b) to communicate to the Manager on any relevant changes or latest development related to the
functions;
c) to consider, propose and implement any relevant improvements related to the functions; and
d) to ensure that the relevant laws governing the Manager are complied with at all times.
8.7 MATERIAL LITIGATION AND ARBITRATION
As at 30 November 2015, PMB Investment was not engaged, pending or threatened, in any material
litigation and arbitration. It was also disclosed under the Director’s Report that there is no
contingent liability that will or may substantially affect our ability to meet the obligations as and
when they fall due.
8.8 INVESTMENT COMMITTEE
a) Profile of Investment Committee Members
i) Mansoor bin Ahmad (Independent/Chairman)
Mansoor received his Bachelor of Economics (Hons) degree from the University of Malaya and
Master of Business Administration from the Australian Graduate School of Management,
University of New South Wales, Sydney, Australia. He joined Komplek Kewangan Malaysia
Berhad in September 1975 as a Research Officer and was later transferred to ASMB and
became an Investment Officer in 1982. He was promoted as Head of Investment and
Corporate Development in 1991 and as General Manager of Operations in 1996, overseeing all
investment and business development function of PMB. In 1999, he was seconded to ASM
Asset Management Sdn. Bhd, a licensed fund management company as a General Manager and
served in that capacity until March 2002. He was transferred to PMB Investment and was
subsequently appointed as the Chief Executive Officer on 2 May 2002 and also as an Executive
Director on 1 April 2004. He was appointed as a member of the Investment Committee on 6
June 2002. He was also elected as a Council Member of FIMM for two (2) consecutive two year
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PMB Investment Berhad
terms since 2004. On 1 December 2006, Mansoor Ahmad was re-designated as the Executive
Director/Adviser of PMB Investment. He retired on 6 July 2007 and thereafter has served as
the Director of PMB Investment until today.
ii) Nik Mohamed Zaki bin Nik Yusoff (Independent)
Nik Mohamed Zaki was appointed as a member of the Investment Committee on 15 June 2009.
He graduated from Carleton University, Ottawa, Canada in 1985 and holds a Bachelor of
Commerce (Hons) Degree. He has more than 25 years of experience in the financial industry.
He started his career with financial institutions in commercial banking before furthering his
career in merchant banking with Affin Investment Bank Berhad. He left the banking sector in
1994 to join PMB as Head, Corporate Development Unit and has been part of Group’s Senior
Management team since 1997. In PMB Group, he has gained further experience in fund
management, unit trust operations, strategic and financial planning and venture
capital/equity investment amongst others. He retired as the Group Chief Executive Officer of
PMB on 30 April 2013. He has served as a Board member of PMB Investment since May 2008.
iii) Professor Dr. Mohamed Aslam bin Mohamed Haneef (Independent)
Professor Dr. Aslam was appointed a member of the Investment Committee on 1 January
2016. He is a currently Professor of Economics at the Economics Department and Director,
Centre for Islamic Economics at the International Islamic University, Malaysia (IIUM) in Kuala
Lumpur. Aslam previously served as an Investment Committee member of a local fund
management company for 13 years from September 2001 to October 2014.
He was in the pioneer batch of Bachelor of Economics (Hons) graduates from IIUM in 1987,
obtained his Master’s degree in Economics from University Malaya in 1991. He received his
PhD in 1994 from the School of Development Studies, University of East Anglia, United
Kingdom. He was conferred with Associate Professor in 2000 and Professor in 2006.
Aslam is also an executive committee member of the International Association for Islamic
Economics (IAEI) and an executive committee member of the International Council of Islamic
Finance Educators (ICIFE). He has written a number of books, articles, chapters in books and
book reviews.
iv) Ahmad Nazim bin Abd Rahman (Non-Independent)
Ahmad Nazim bin Abd Rahman is Group Chief Executive Officer of Pelaburan Mara Berhad, an
investment and asset management firm wholly-owned by the Government of Malaysia. He has
been involved in investments and fundraising activities across various industries and has
undertaken acquisitions of both listed and unlisted commercial entities and real estate assets
and projects across the region. He was previously Chief Executive Officer of a regional
telecommunication group and had served as President Director of its Indonesian subsidiary,
responsible for the group’s telecommunication infrastructure business in the region.
He currently sits on the Board of Directors of National Bank of Abu Dhabi (M) Berhad and
serves as its Chairman of the Risk Management Committee and the Remuneration Committee.
He is also a member of the board of Singapore-based private equity funds Al Masah Capital
(Asia) Pte Ltd.
Ahmad Nazim started his career in law and corporate finance and had worked with leading
firms in Kuala Lumpur and London and with Securities Commission of Malaysia. He had
advised financial institutions and corporations on various aspects of corporate finance, cross-
border financing, mergers and acquisitions and restructuring activities. A keen observer of
international affairs, he was the 2011 International Fellow at the Centre for Strategic and
International Studies, Washington, DC and a Fulbright scholar at Georgetown University
where he obtained his Master of Laws.
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PMB Investment Berhad
b) Roles and Functions of the Investment Committee
The functions and responsibilities of the Investment Committee are as follows:-
i) To ensure the consistency between the investment management policies of the Fund are
consistent and the Fund’s objectives, this Prospectus (as amended from time to time), the
Deed and the Guidelines and other relevant laws;
ii) To formulate investment policies and plan, and to select appropriate strategies to meet the
Fund’s objectives;
iii) To provide guidance and advice in the implementation of the strategies;
iv) To actively monitor, measure and evaluate the investment performance of the Fund and the
Fund Manager;
v) To consider other matters deemed necessary for the benefit of the Fund; and
vi) To recommend the Fund’s income distribution and/or unit splitting for the Trustee’s
approval.
vii) To meet at least once every two (2) months to monitor the management activities of the
Manager.
8.9 SHARIAH ADVISER OF THE FUND
a) Profile of the Shariah Adviser
BIMB Securities Sdn Bhd (BIMBSEC) is a stockbroking subsidiary of BIMB Holdings Bhd. It was
incorporated on 21 February 1994.
The company’s corporate mission is to actively participate in a modern, innovative and dynamic
Islamic capital market in Malaysia, catering for the needs of both Muslims and Non-Muslims.
BIMBSEC is Corporate Shariah Adviser to 24 Islamic unit trust funds. As at 30 November 2015, the
staff strength of BIMBSEC consists of 73 employees of whom 65 are executive staff and 8 are non-
executive staff.
The company has an authorised share capital of RM250 million, and its current issued and paid-up
share capital is RM100 million. The shareholdings of BIMBSEC are as follows:-
Shareholders % of Holding
BIMB Securities Holdings Sdn Bhd
(wholly owned subsidiary of BIMB Holdings Berhad) 51
BIMB Holdings Berhad 49
b) Board of Directors
Name Position
Zahari @ Mohd Zin bin Idris Non-Executive Director
Rashid bin Ismail Executive Director/CEO
Dato’ Johan bin Abdullah Non-Executive Director
Abdul Kadir bin Sahlan Non-Executive Director
Mohamad Rani Dali bin Samsudin Executive Director
Mustapha bin Hamat Non-Executive Director
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PMB Investment Berhad
c) Designated Person Responsible for Shariah Matters
Ir. Dr. Muhamad Fuad bin Abdullah
Ir. Dr. Muhamad Fuad, the designated person in-charge of all Shariah matters in BIMBSEC is
appointed to the Shariah Advisory Committee of BIMBSEC effective 1 June 2011.
He graduated with a Bachelor of Science Degree in Electrical Engineering in 1977 and a Master of
Philosophy Degree in Electrical Engineering in 1982 from the University of Southampton, England.
He also obtained a Bachelor of Arts (Jayyid) Degree in Shariah from the University of Jordan in
1994 and a Doctor of Philosophy in Muslim Civilization from the University of Aberdeen, Scotland
in 1996.
Currently Dr. Muhamad Fuad serves as the Chairman of the Shariah Committee of MIDF Group of
Companies and member of the Group Shariah Committee of MNRB Holdings Berhad. He is a
registered Shariah Adviser with the Securities Commission Malaysia (SC) which qualifies him to
advise on Shariah-compliant products and services regulated by the SC.
He is a registered Shariah lawyer of Majlis Agama Islam Perak and an Adjunct Professor of
Universiti Teknikal Malaysia Melaka (UTeM).
He sits on the boards of Sime Darby Bhd, Sime Darby Property Bhd, Malaysian Industrial
Development Finance Berhad (MIDF), MIDF Property Berhad, Mesiniaga Berhad and Institut
Kefahaman Islam Malaysia (IKIM), a public company limited by guarantee.
Dr. Muhamad Fuad is the designated person in-charge of PMB Investment’s funds.
d) Roles and Functions of Shariah Adviser
i) The responsibilities of the Shariah Adviser are to ensure that the Fund is managed and
operated in accordance with Shariah principles, relevant SC regulations and/or standards
including resolutions issued by the SAC.
ii) The Shariah Adviser shall provide expertise and guidance for the Fund in all matters relating
to Shariah principles, including on the Deed and prevailing Prospectus, its structure and
investment process and other operational matters.
iii) Where there is any ambiguity or uncertainty as to an investment, instrument, system,
procedure and/or process, the Shariah Adviser shall consult the SC.
iv) The Shariah Adviser is responsible to review the Fund’s compliance report as provided by the
compliance officer and investment transaction report provided by or duly approved by the
Trustee, to ensure that the Fund’s investments are in line with Shariah principles.
v) The Shariah Adviser shall prepare a report to be included in the Fund’s interim and annual
report certifying whether the Fund has been managed and operated in accordance with
Shariah principles for the period concerned.
vi) The Shariah Adviser shall meet with the Fund Manager on a quarterly basis for review of the
Fund management or any other ad-hoc meeting as required.
8.10 INVESTMENT MANAGEMENT TEAM
a) Ameer Ali bin Vali Mohamed
The detailed profile is as aforementioned is Section 8.3.
b) Isnami bin Ahmad Mohtar
The detailed profile is as aforementioned is Section 8.3.
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PMB Investment Berhad
c) Suliman bin Bakar
Suliman is the Senior Manager, Portfolio. He joined the Manager on 5 October 2015. Prior to
joining PMB Investment, he was with Kedah Islamic Asset Management Berhad from 1995 until
2015 and his last position was Executive Director / Head of Portfolio and Research Department.
Prior to that, he was attached with one of the leading financial institutions in Malaysia from 1991
until 1994. He has accumulated more than 21 years of experience in fund management industry.
He holds a Diploma in Accountancy from UiTM. He is the holder of a Capital Markets Services
Representative Licence (fund management).
d) Norzahari bin Zakaria
Norzahari is the Head of Research and reports to the Acting CIO. He is responsible for the overall
management of the investment research activities of the company, including but not limited to
economic research, equity research, fixed income research and money market research. He also
manages some equity funds. Norzahari has been in the financial industry since September 1990
with extensive experience in credit review, credit marketing, credit control, business development,
venture capital as well as equity research and fund management. He joined PMB in July 2000 and
was initially attached to its Project Department where his job scope was overseeing the venture
capital and credit activities of the company. Subsequently in February 2006, he was transferred to
ASM Asset Management Sdn Bhd and later to PMB Investment. He assumed the current position in
January 2013. Norzahari holds a Diploma in Business Studies and BBA (Hons) Finance from UiTM.
He is the holder of a Capital Markets Services Representative Licence (Islamic fund management).
e) Adil Azhar bin Ibrahim
Adil Azhar is the Portfolio Manager, Fixed Income. He manages fixed income portfolios as well as
monitors and conducts analysis on sukuk and money market instruments. He joined PMB in
October 2013 as Portfolio Manager, Direct Investment and was responsible for the overall due
diligence on all potential investments before being assigned to the current position in PMB
Investment in July 2014. He was previously attached to the Investment Operations and Financial
Market Department of Bank Negara. Adil Azhar holds a Degree of Bachelor of Engineering from
Hokkaido University, Hokkaido, Japan. He is the holder of a Capital Markets Services
Representative Licence (Islamic fund management).
e) Amirul Imran bin Ahmat
Amirul Imran is the Portfolio Manager, Fixed Income. He monitors and conducts analysis on sukuk
and money market instruments. He joined PMB in June 2014 as Portfolio Manager, Investment
Management and was responsible for the overall due diligence on all potential investments before
being assigned to the current position in PMB Investment in March 2015. Prior to that, he held
positions in banking industry including as Assistant Vice President of Affin Investment Bank
Berhad, Manager of RHB Islamic Bank Berhad, Manager of AmInvestment Bank (M) Bhd and
Porftolio Manager of Kumpulan Wang Persaraan Berhad. Amirul Imran holds a B.A (Hons) Business
Administration from University of East London. He is the holder of a Capital Markets Services
Representative Licence (Islamic fund management).
f) Norhazira binti Mazelan
Norhazira is the Assistant Portfolio Manager. She assists in managing fixed income portfolios as
well as monitors and conducts analysis on sukuk and money market instruments. She joined PMB
in February 2014 as Senior Executive, Investment Management, and was responsible for assisting
in money market and fixed income transactions before being assigned to the current position in
PMB Investment in June 2014. She was previously attached to Small Medium Enterprise
Development Bank of Malaysia Kuala Lumpur as an Associate for its Treasury and Investment
Department. Norhazira holds a Bachelor of Business Administration (Hons) (Finance) from UiTM.
She is the holder of a Capital Markets Services Representative Licence (Islamic fund management).
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PMB Investment Berhad
g) Nur Raihan binti Munir
Nur Raihan is the Assistant Portfolio Manager. She assists in managing fixed income portfolios as
well as monitors and conducts analysis on sukuk and money market instruments. She joined PMB
in June 2014 as Senior Executive, Investment Management, and was responsible for assisting in
money market and fixed income transactions before being assigned to the current position in PMB
Investment in November 2014. She was previously attached to Small Medium Enterprise
Development Bank of Malaysia Kuala Lumpur as an Associate for its Treasury and Investment
Department. Nor Raihan holds a Bachelor of Business Administration Hons (Finance) from UiTM.
She is the holder of a Capital Markets Services Representative Licence (Islamic fund management).
h) Siti Rafidah binti Ghazali
Siti Rafidah is the Executive, Portfolio Solutions, and an alternate fund manager. She joined PMB
Investment in January 2013 as an Equity Analyst. Prior to that, she was attached to Henry Butcher
Malaysia (Sel) Sdn Bhd as a Valuation Executive in 2012 and Warisan Mukmin Sdn Bhd as an
Investment Executive. Siti Rafidah holds a Bachelor of Estate Management from UiTM. She is the
holder of a Capital Markets Services Representative Licence (Islamic fund management).
i) Nahdatul Syima binti Mohd Saad
Syima is an Equity Analyst and an alternate fund manager. She joined PMB Investment in January
2013. Prior to that, she was attached to Public Bank Berhad as a Graduate Trainee (Credit Analyst
for Hire Purchase) in 2012. Syima holds a Bachelor of Business Administration and Diploma in
Investment Analysis from UiTM. She is the holder of a Capital Markets Services Representative
Licence (Islamic fund management).
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PMB Investment Berhad
9. THE TRUSTEE OF THE FUND
9.1 COMPANY PROFILE
CIMB Islamic Trustee Berhad (CITB) is the trustee for the Fund.
CITB is incorporated in Malaysia and registered as a trust company under the Trust Companies Act,
1949. It is qualified to act as a trustee for CISs approved under the Act. It has been involved in the
unit trust industry as trustee close to 25 years.
It has an authorised capital of RM5,000,000 of which the total issued capital is RM2,000,000 and
the total paid up capital is RM1,000,000.
As at 30 November 2015, CITB acts as trustee to 1 real estate investment trust fund, 21 unit trust
funds, 21 wholesale funds and one private retirement scheme (consisting of 3 funds) and has more
than 25 years of experience as a trustee to unit trust funds.
In addition to overseeing this Fund, CITB also acts as trustee to private debt securities issues such
as sukuk, bonds and notes. Other than being the administrator of deceased 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 18 staff, comprising 14 executives and 4 non-executives as at 30 November
2015.
a) Board of Directors
• Zahardin Bin Omardin - Non-Executive, Independent Director & Chairman
• Mohamad Safri Bin Shahul Hamid - Non-Executive, Non-Independent Director
• Liew Pik Yoong - Executive, Non-Independent Director
b) Liew Pik Yoong, Susan (Chief Executive Officer)
Ms Liew 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).
c) 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.
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PMB Investment Berhad
d) Summary of Financial Position
Year Ended 2014
(RM’000)
2013
(RM’000)
2012
(RM’000)
Paid-Up Share Capital
Shareholders’ Fund
Turnover *
Profit Before Tax
Profit After Tax
1,000
5,018
3,403
1,312
945
1,000
6,573
2,788
370
263
1,000
6,311
4,000
1,386
993
*Only Shariah-compliant income are recognized since the entity’s conversion to Islamic in 2012.
e) Delegate
CIMB Islamic Trustee Berhad 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.
f) Material Litigation
As at 30 November 2015, CITB was not engaged in any material litigation and arbitration, including
those pending or threatened, and any facts likely to give rise to any proceedings which might
mateally affect the business/financial position of CITB or any of its delegates.
9.2 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.
9.3 ROLES, DUTIES AND RESPONSIBILITIES OF THE TRUSTEE
The Trustee’s functions, duties and responsibilities are set out in the Deed. The general function,
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;
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PMB Investment Berhad
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, actively monitoring the
operation 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.
9.4 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 Funds, as well as act at all times in the
best interest of the Unit Holders. The Trustee also has adequate procedures and processes in
place to prevent or control conflicts of interest.
9.5 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.
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10. SALIENT TERMS OF THE DEED
10.1 RIGHTS AND LIABILITIES OF A UNIT HOLDER
a) Your rights
i) The right to receive the distributions of income (if any), participate in any increase in the
value of the Units and to enjoy such other rights and privileges as provided for in the Deed.
ii) Subject to the provision of the Deed, the right to call for a Unit Holders’ meeting for any
resolutions, and also to vote for the removal of the Trustee or us through a special resolution.
iii) The rights to exercise your cooling-off period if you invest for the first time with PMB
Investment except for if you are either corporate/institutional clients, staff of the Manager or
a person registered with a body approved by the SC to deal in unit trusts.
iv) The right to receive annual reports and interim reports of the Fund, which are sent out within
two (2) months from the closing of each financial year and the interim period.
b) Limitation of Rights
i) Unit Holders are not entitled to request for the transfer of any assets in the Fund or be entitled
to interfere with or question the exercise by the Trustee or by the Manager on the Trustee’s
behalf of the rights of the Trustee as the owner of such assets.
ii) Unit Holders are not entitled to attend any meeting of shareholders, stockholders or
debenture holders or to vote or take part in or consent to any company or shareholders', stock
holders' or debenture holders' action.
c) Your Liabilities
You would not be liable and shall not be under any obligation to indemnify the Trustee and/or the
Manager in the event that the liabilities incurred by the Trustee and/or the Manager in the name of
or on behalf of the Fund pursuant to and/or in the performance of the provisions of the Deed
exceed the value of the assets of the Fund, and any right of indemnity of the Trustee and/or
Manager will be limited to recourse to the Fund.
10.2 FEES AND CHARGES
Enlisted below are the maximum fees and charges permitted by the Deed:
Sales Charge 6.0% of the NAV per unit
Repurchase Charge Nil
Annual Management fee 1.8% per annum of the NAV of the Fund
Annual Trustee fee 0.5% per annum of the NAV of the Fund
All current fees and charges are disclosed in Sections 3.2 and Chapter 6 of this Prospectus. The
disclosed current fees and charges in Sections 3.2 and Chapter 6 of this Prospectus could be lower
than that stated in the Deed. Any increase in the current sale and/or repurchase charges stated in
the current Prospectus could only be made if:
a) the Manager has notified the Trustee in writing of the higher charge and the effective date of
the charge;
b) a supplementary prospectus stating the higher charge is issued;
c) time as required by the law has elapsed since the issuance of the supplementary prospectus;
and
d) the maximum fees or charges stated in the Deed shall not be breached.
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Any increase in the current annual management fee and/or annual trustee fee stated in the
Prospectus could only be made if:
a) (for management fee) the Manager has notified the Trustee in writing of the new higher rate
and the trustee agrees to it;
b) (for Trustee fee) the Trustee has notified the Manager in writing of the new higher rate, and
the Manager agrees to it;
c) the Manager has notified unit holders of the higher rate and its effective date;
d) a supplementary prospectus stating the higher rate of fees has been registered and issued;
time as required by the law has elapsed since the issuance of the supplementary prospectus;
and
e) the maximum fees stated in the Deed shall not be breached.
Any increase of the fees and/or charges above the maximum rate stated in the Deed shall require
Unit Holders’ approval and can only be made by way of a supplemental deed and in accordance
with the requirements of the Act.
If any goods and services tax is imposed on or made payable by Unit Holders by virtue of any law,
regulation, directive or order by any governmental authority, in connection with or in relation to
any dealings in Units of the Fund or any services provided by the Manager of the Trustee in
connection with or in relation to the Fund, Unit Holders shall pay such goods and services tax to the
Manager and/or the Trustee for onward payment to the relevant governmental authorities.
10.3 OTHER PERMITTED EXPENSES
The Trustee shall at the request of the Manager pay out of the Cash Produce all costs, charges and
expenses that are directly related and necessary to the business of the Fund. These would include:
a) commissions/fees paid to brokers in effecting dealings in the investments of the Fund, shown
on the contract notes or confirmation notes;
b) taxes and other duties charged on the Fund by the Government and/or other authorities;
c) costs, fees and expenses properly incurred by the Auditor appointed for the Fund;
d) costs, fees and expenses incurred for the valuation of any investment of the Fund by
independent valuers for the benefit of the Fund;
e) costs, fees and expenses incurred for any modification of the Deed save where such
modification is for the benefit of the Manager and/or the Trustee;
f) costs, fees and expenses incurred for any meeting of the Unit Holders save where such meeting
is convened for the benefit of the Manager and/or the Trustee;
g) costs, commissions, fees and expenses of the sale, purchase, insurance and any other dealing of
any asset of the Fund;
h) costs, fees and expenses incurred in engaging any specialist approved by the Trustee for
investigating or evaluating any proposed investment of the Fund;
i) costs, fees and expenses incurred in engaging any valuer, adviser or contractor for the benefit
of the Fund;
j) costs, fees and expenses incurred in the preparation and audit of the taxation, returns and
accounts of the Fund;
k) costs, fees and expenses incurred in the termination of the Fund or the removal of the Trustee
or the Manager and the appointment of a new trustee or manager;
l) 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
Manager 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);
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m) remuneration and out of pocket expenses of the independent members of the Investment
Committee of the Fund, unless the Manager decides otherwise; and
n) costs, fees and expenses deemed by the Manager 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.
In particular, expenses associated with the management and administration of the Fund, such as
general overheads and costs for services expected to be provided by the Manager, shall not be
charged to the Fund. However, expenses relating to the issue of the prevailing prospectus may be
charged to the Fund if the Fund does not impose any sales charge.
Provided further that the quantum of the expenses chargeable to the Fund shall not be excessive or
more than the standard commercial rates. In instances where uncertainty arises as to the status of
the expenses the Trustee shall use its discretion in determining the legitimacy of the expenses.
10.4 REMOVAL, REPLACEMENT AND RETIREMENT OF THE MANAGER
AND TRUSTEE
Subject to the provisions of the Deed and the relevant laws, the Manager may retire upon giving
twelve (12) months' notice to the Trustee of our desire to do so or such shorter period as the
Trustee and the Manager may agree, and we may by way of a deed appoint in our stead a new
manager subject to the approval of the relevant authorities.
Subject to the provisions of the Deed and the relevant laws, the Manager may be removed and
another manager may be appointed by special resolution of the Unit Holders at a Unit Holders’
meeting convened in accordance with the relevant Deed.
Subject to the provisions of the Deed and the relevant laws, the Trustee shall take reasonable steps
to remove the Manager as soon as practicable after becoming aware of any such circumstances as
stated in subsection 10.4 (c) of this Prospectus on "Power of Trustee to Remove, Retire or Replace
the Manager".
a) Powers of the Manager to Remove and Replace the Trustee
As allowed under Section 299 of the Act we shall take all reasonable steps to replace the
Trustee as soon as practicable after becoming aware that:-
i) the Trustee has ceased to exist;
ii) the Trustee has not been validly appointed;
iii) the Trustee is not eligible to be appointed or to act as trustee under any relevant law;
iv) the Trustee has failed or refused to act as a Trustee in accordance with the provisions or
covenants of the Deed or any relevant law;
v) a receiver is appointed over the whole or a substantial part of the assets or undertaking of
the existing Trustee and has not ceased to act under that appointment, or a petition is
presented for the winding up of the existing Trustee (other than for the purpose of and
followed by a reconstruction, unless during or following such reconstruction the existing
trustee becomes or is declared to be insolvent); or
vi) 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 laws.
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b) Retirement, Removal or Replacement of the Trustee
The Trustee may retire upon giving twelve (12) months' notice to the Manager of its desire to
do so, or such shorter period as the Manager and the Trustee may agree, and may by deed
appoint in its stead a new trustee approved by the relevant authorities and under any relevant
law.
The Trustee may be removed and another trustee may be appointed by Special Resolution of
the Unit Holders at a Unit Holders’ meeting convened in accordance with the Deed or as
stipulated in the Act.
c) Power of Trustee to Remove, Retire or Replace the Manager
Subject to the Deed and the relevant laws, the Trustee may take steps to remove the Manager
in the event that:
i) the Manager goes into liquidation (except for the purposes of amalgamation or
reconstruction or some other purpose approved by the relevant authorities); or
ii) the Manager is in breach of its obligations under the Deed, the Act or relevant laws; or
iii) the Manager has had a receiver appointed; or
iv) the Manager has ceased to carry on business; or
v) a special resolution has been passed at the Unit Holders’ meeting to remove the
Manager in accordance with the Deed; or
vi) the Manager 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 the Manager of that opinion and the
reasons for that opinion, and has considered any representations made by the
Manager in respect of that opinion, and after consultation with the SC and with the
approval of the Unit Holders by way of a special resolution.
10.5 TERMINATION OF THE FUND
Upon the occurrence of any of the following events:
a) if the Manager has gone into liquidation, except for the purpose of reconstruction or
amalgamation upon terms previously approved in writing by the Trustee and the relevant
authorities; or
b) if, in the opinion of the Trustee, the Manager has ceased to carry on business; or
c) if, in the opinion of the Trustee, the Manager has to the prejudice of Unit Holders failed to
comply with the provisions of the Deed or contravened any of the provisions of any relevant law;
and at a unit holders' meeting summoned by the Trustee in accordance with the Deed, a special
resolution is passed to terminate or wind up the Fund, the Trustee shall apply to Court to confirm
such special resolution. Upon obtaining the relevant Court order, the Trustee shall take steps to
terminate and winding up the Fund in accordance with the Court order, the Deed, the prevailing Acts
and Guidelines .
10.6 UNIT HOLDERS’ MEETING
Subject to the Deed and the prevailing Acts and Guidelines, a Unit Holders’ meeting could be
summoned for any purpose with the salient details as follow:-
a) The Manager and the Trustee may convene a Unit Holders’ meeting at any time, whilst, the Unit
Holder could request for a meeting provided the written request comes from not less than fifty
(50) Unit Holders or 1/10 of Unit Holders.
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b) If the meeting is requested by the Manager, a notice of the meeting would be sent out not less
than fourteen (14) days of any such meeting. Whereas, if a meeting is summoned by the Unit
Holders, the Manager will send a notice by post at least seven (7) days before the meeting , and
also publish a notice in the newspaper at least fourteen (14) days before the meeting.
c) The Manager is entitled to receive notice of and to attend at any Unit Holders’ meeting but in
respect of Units which the Manager hold or is deemed to hold, then the Manager is not entitled
to vote at or be counted in the quorum for such meeting. And accordingly, for the purposes of
the following provisions of this Clause, Units held or deemed to be held by the Manager shall
not be regarded as being an issue.
d) The quorum required for a meeting of the Unit Holders shall be 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 removing the Manager and/or the Trustee shall be ten
(10) Unit Holders, whether present in person or by proxy, who must hold in aggregate at least
fifty per centum (50%) of the Units in circulation at the time of the meeting;
e) Save as has been otherwise expressly provided for herein the Deed or as may be directed by the
Trustee with the approval of the relevant authorities, all resolutions presented at Unit Holders'
meetings shall be passed by a simple majority.
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11. CONFLICT OF INTEREST
The Manager and the Trustee and any delegate thereof will endeavor to avoid conflicts of interest arising
or, if conflicts arise they will ensure that neither the Unit Holder nor the Fund is disadvantaged by the
transaction concerned. Any transaction or investment carried out by or on behalf of the Fund should be
executed at an arm’s length transaction. The Manager and our related corporations will not act as principal
in the sale and purchase of investments and the Fund will not invest in companies related to the Manager.
Where a conflict of interest arises due to the Investment Committee member or director holding substantial
shareholding or directorships of public companies, and the Fund invests in that particular share or stock,
the said committee member or director shall abstain from any decision making relating to investment in
that share or stock of the Fund.
Our employees who are directly involved in the investment management of the Fund or who have direct
and timely access to the daily trades done by the Fund Managers, are required to declare their dealing in
the securities.
To date, there has been no event of conflict of interest amongst us, employees, directors and Investment
Committee members. In the event a conflict or potential conflict of interest involving the Manager and
employees is identified, this will be evaluated by the Compliance Department and disclosed to the Chief
Executive Officer (CEO) for the next course of action. Conflict of interest situations involving the CEO,
directors and/or Investment Committee members will be disclosed to the Board of Directors for a decision
on the next course of action.
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12. TAXATION OF THE FUND
Our Ref : MG / LBP/EMI
14 July 2015
The Board of Directors
PMB Investment Berhad
Level 20, 1 Sentral Jalan Rakyat, Kuala Lumpur Sentral
50470 Kuala Lumpur
Dear Sirs,
PMB SHARIAH SMALL-CAP FUND
TAXATION OF THE FUND AND UNIT HOLDERS
This letter has been prepared for inclusion in the First Prospectus in connection with the offer of units in
the PMB Shariah Small-Cap Fund (‘The Fund”).
1 TAXATION OF THE FUND
The Fund is treated as a unit trust for Malaysian tax purposes. The taxation of the Fund is subject to the
provisions of the Malaysian Income Tax Act 1967 (“the Act”), the applicable provisions being contained in
Section 61 (trusts generally) and section 63B (special deduction of expenses) of the Act.
The Fund is regarded as being resident for Malaysian tax purposes since the Trustee of the Fund is resident
in Malaysia under S61(3) of the Act.
1.1) General Taxation
The income of the Fund from its investments derived from or accruing in Malaysia such as dividends,
interest and profit (other than interest or profit which is exempt from tax) after deducting tax allowable
expenses under S 33(1) and S 63B of the Act is liable to income tax. The income tax rate applicable to the
Fund is 25%. It was proposed in the 2014 Budget tabled in Parliament on 25 October 2013 that the tax rate
of 25% be reduced by 1% to 24% with effect from Year of Assessment (“YA”) 2016.
Gains on disposal of investments by the fund are not subject to Malaysian income tax. Such gains, however,
may be subject to real property gain tax under the Real Property Gains Tax Act, 1976 (see Item E below).
1.1.1) Exempt Income
A) Malaysian Sourced Dividends
With effective from 1 January 2008, Malaysia introduced the single tier system where dividends paid by
fund are not taxable in the hands of the recipients. Dividend received from fund that are under the single
tier system would be exempted from tax and the expenses incurred on such dividends would be
disregarded. There will no longer be any tax refunds for dividends received.
B) Malaysian Sourced Interest
(i) Interest from securities or bonds issued or guaranteed by the government of Malaysia;
(subparagraph 35(a) of Schedule 6 of the ITA 1967)
(ii) Interest from Islamic securities, (other than convertible loan stock) approved by the Securities
Commission (subparagraph 35(b) of Schedule 6 of the ITA 1967) or Labuan Offshore Financial
Services Authority (LOFSA);
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(iii) Interest from Bon Simpanan Malaysia issued by Bank Negara Malaysia;
(Subparagraph 35(d) of Schedule 6 of the ITA 1967)
(iv) Interest derived from Malaysia and paid or credited by banks or financial institutions licensed under
the Banking and Financial Institutions Act 1989 (BAFIA) or the Islamic Banking Act 1983 (IBA);
(paragraph 35A of Schedule 6 of the ITA 1967)
Please note that the BAFIA and IBA have been repealed with the coming into force of the
Financial Services Act 2013 and Islamic Financial Services Act 2013 on 30th June 2013. No
amendment has been made to the Income Tax Act 1967 to reflect the above.
(v) Interest derived from bonds (other than convertible loan stock) paid or credited by any company
listed on the Malaysian Exchange of Securities Dealing and Automated Quotation Berhad (MESDAQ),
now known as Bursa Malaysia Securities Berhad ACE Market;
(vi) Interest received from bonds or securities issued by Pengurusan Danaharta Nasional Berhad;
(Income Tax (Exemption)(No.5) Order 2001 [P.U.(A) 220/2001]
(vii) Interest from any savings certificates issued by the Government;
(paragraph 19 of Schedule 6 of the ITA 1967)
C) Discounts
Discounts earned by the Fund in respect of investments as specified in items B) (i) to (iii) above.
D) Foreign Sourced Income
Income of the Fund 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 distribution of 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 Fund.
The foreign income exempted from Malaysian tax at the Fund level will also be exempted from tax upon
distribution to the unit holders.
E) Gains From Realisation of Investments
Pursuant to Section 61(1)(b) of the Malaysian Income Tax Act 1967, gains from the realization of
investments will not be treated as income of the Fund and hence, are not subject to income tax. Such gains
may be subject to real property gains tax under the Real Property Gains Tax Act 1976 (“RPGT Act“), if the
gains are derived from the sale of chargeable assets, as defined in the RPGT Act.
As gazetted in the Finance Act 2014, with effect from 1 January 2014, any gains from disposal of real
properties (“chargeable asset”) or shares in real property companies “chargeable asset” would be subject to
real property gains tax. According to Schedule 5 of the Real Property Gains Tax Act 1976 the RPGT rates are
as follows:
RPGT RATES
Time of Disposal Individuals Companies Non-citizens
Within 3 years 30 % 30 % 30%
In the 4th year 20% 20% 30%
In the 5th year 15 % 15 % 30%
In the 6th year and subsequent years 0% 5% 5%
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F) Tax Deductible Expenses
Tax deductible expenses are governed by Section 33(1) and Section 63B of the Malaysian Income Tax Act
1967.
Section 33(1) generally provides for deduction of expenses “wholly and exclusively” incurred in the
production of gross income. Whilst, Section 63B allows the Funds deduction for a portion of other
expenses(referred to as “permitted expenses”) not directly related to the production of gross income. The
special deduction is calculated using the following formula:
A X B
4C
Where:
A Is the total permitted expenses incurred for that basis period. “Permitted expenses” means expenses
incurred by the unit trust in respect of manager’s remuneration, maintenance of register of unit
holders, share registration expenses, secretarial, audit, accounting fees, telephone charges, printing
and stationery cost and postage, which are not deductible under Section 33(1),
B Is gross income consisting of dividends, interest and rent chargeable to tax for that basis period, and
C Is the aggregate of the gross income consisting of dividends and interest (whether exempt or not), rent
and gains made from the realisation of investments (whether chargeable to tax or not) for that basis
period,
Provided that the amount of deduction to be made shall not be less than 10% of the total permitted
expenses incurred for that basis period.
G) Goods and Services Tax (GST)
GST is implemented in Malaysia effective from 1 April 2015 at a standard rate of 6%. It will replace the
current sales tax and service tax.
Based on the Guide on Fund Management issued by the Royal Malaysian Customs Department on 27
October 2013. The investment activities of a unit trust fund including the buying and selling of securities
are exempt supplies. Therefore, a unit trust fund makes wholly exempt supplies and is not required to be
registered for GST purposes. There is no requirement for the fund to make any application for exemption
from registration.
However, certain expenses incurred by the Fund such as fund manager’s fee, trustee fees and professional
fees will be subject to GST at a standard rate if the service providers are registered persons. Since the Fund
is making exempt supplies, any input tax incurred by the Fund for the aforementioned expenses are not
claimable.
2) Taxation of Unit Holders
For Malaysian income tax purposes, unit holders will be taxed on their share of the distributions received
from the Fund.
The income of unit holders from their investment in the Funds broadly falls under the following categories:-
1. Taxable Distributions; and
2. Non-Taxable And Exempt Distributions.
3. Undistributed Income
In addition, unit holders may also realizes a gain from the sale of units.
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The tax implications of each of the above categories are explained below: -
1. Taxable Distributions
Unit holders will be taxed on an amount equivalent to their share of the total taxable income of the Fund to
the extent of the distributions received from the Fund.
The income distributions received from the Fund will have to be grossed up to take into account the
underlying tax paid by the Fund and the unit holders will be taxed on the grossed up amount.
Such distributions carry a tax credit in respect of the tax paid by the Fund. Unit holders will be entitled to
utilise the tax credit against any Malaysian income tax payable by the unit holder on the income
distribution received by them, the excess is refundable to the unit holder.
Please refer to the paragraph below for the income tax rates applicable to the grossed up distributions.
2. Non-Taxable And Exempt Distributions
The distribution of single tier dividends, other than tax exempt income and gains from the realization of
investments earned by the Fund will not be subject to Malaysian income tax in the hands of the unit holders
in Malaysia. Distribution of foreign income will also be exempted in the hands of the unit holders.
The following types of income are tax exempt in the hands of the unit holders : -
a) certain interest income and foreign sourced income is tax exempt at the unit trust level. Unit
holders who receive a distribution of such tax exempt income will not be subject to income tax.
b) disposal of investments by the unit trust fund is not subject to tax. The distribution of gains from
such disposals is tax exempt in the hands of the unit holders.
c) any gains realised by unit holders (other than dealers in securities, insurance companies or
financial institutions) on the sale, transfer or redemption of the units trust are treated as capital
gains and will not be subject to income tax.
d) bonus issues of units which either : -
* represent a division of the unit holder’s existing investment into a larger number of units, or
* the distribution of unrealized gains as additional units.
However, if the bonus issue of units represents distribution of income derived from investment of
the unit trust, these units will be subject to tax.
e) Unit holders electing to receive their income distribution by way of investment in the form of the
purchase 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.
3. Undistributed Income
Unit holders are not taxed on the undistributed income or gains of the fund.
• Filing of Income Tax Returns
Unit holders have to declare their taxable distributions from unit trusts together with their income
from other sources in the relevant Income Tax Returns.
• Rates of Tax
The Malaysian income tax chargeable on the unit holders would depend on their tax residence status
and whether they are individuals, corporations, non-corporations or trust bodies. The relevant income
tax rates are as follows : -
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TYPES OF UNIT HOLDERS
Malaysian tax resident
• Resident individuals and others (such as
associations and societies)
• Corporate unit holders
a) Small medium industry (SMI) company
b) Non – SMI company
Non-Malaysian tax resident
• Individual & non-corporate Unit holders
• Corporate unit holders & trust bodies
MALAYSIAN INCOME TAX RATES
• Progressive tax rates ranging from 0% to 25% -
Appendix (i)
• Chargeable income on first RM500,000 @20%
(reduced by 1% to 19% with effect from Year of
Assessment 2016) – Appendix 1(ii)
Chargeable income in excess of RM500,000
@25% (reduced by 1% to 24% with effect from
Year of Assessment 2016) - Appendix 1(ii)
• Flat rate of 25%
(reduced by 1% to 24% with effect from Year of
Assessment 2016) - Appendix 1(ii)
• 25% - Appendix 1(iii)
• 25% - Appendix 1(iii)
(Remarks : Non-resident unit holders may be subject to tax in their respective countries depending on the
provisions of the tax legislation in the respective countries and any existing double taxation arrangements
with Malaysia)
We hereby confirm that, as at the date of this letter, the statements made in this report correctly reflect our
understanding of the tax position under current Malaysian tax legislation. All prospective investors should
not treat the contents of this letter as advice relating to taxation matters and are recommended to obtain
independent advice on the tax issues associated with their investments in the Fund.
Yours faithfully,
AHMAD ABDULLAH & GOH
GOH KENG JUAY
Partner
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Appendix 1
(i) The maximum income tax rate of 25% is reduced by 1% to 24% with effect from Year of Assessment
(YA) 2016;
(ii) SMI company means a company incorporated in Malaysia and has paid up capital in respect of ordinary
shares of RM 2.5 million and below at the beginning of basis period for a Year of Assessment (YA),
resident in Malaysia and not within a group where the holding or other subsidiary company is:
a) more than 50% of the paid up capital in respect of an ordinary shares of the company is directly or
indirectly owned by a related company;
b) more than 50% of the paid up capital in respect of ordinary shares of the related company is
directly or indirectly owned by the first mentioned company; or
c) more than 50% of the paid up capital in respect of ordinary shares of the first mentioned
companyandthe related company is directly or indirectly owned by other company.
“Related company” in this content is defined as a company which has a paid up capital exceeding RM2.5
million in respect of ordinary shares at the beginning of the basis period of the year of assessment.
However, the said tax rate of 20% on chargeable income of up to RM 500,000 would not apply if more
than 50% of the paid up capital in respect of ordinary shares of that corporate Unit Holder is directly
or indirectly owned by a related company which has a paid up capital exceeding RM 2.5 Million in
respect of ordinary shares, or vice versa, or more than 50% of the paid up capital in respect of
ordinary shares of both companies are directly or indirectly owned by another company.
(iii) Corporate unit holders who are not resident in Malaysia will be subject to Malaysian income tax (the
prevailing rate is 25%).
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13. ADDITIONAL INFORMATION
13.1 UPDATES ON THE FUND
You may access the daily Fund prices, Fund’s monthly updates and review our interim and annual reports
via our website – www.pmbinvest.com.my.
13.2 PRE-INVESTMENT FORM (PIF)
The purpose of the PIF is to ensure that the investor is sufficiently informed on investments in unit trust
funds and in particular, understand the unit trust fund you are investing in. You are required to complete
the PIF prior to account opening if you are a first time investor. If you invest in several new funds
simultaneously, a PIF must be completed for each fund.
13.3 SUITABILITY ASSESSMENT
The Suitability Assessment should be conducted on an investor who wishes to invest in a new unlisted
capital market product. The Suitability Assessment Form should be completed prior to the account opening.
A suitability assessment refers to an exercise carried out by the Manager to gather necessary information
from the investor before matching a particular Fund with the needs of an investor.
13.4 INVESTOR RELATION .
You may communicate with us by:-
a) Telephone: (03) 2785 9900 (Investor Relation Careline) / (03) 2785 9800 (General Line)
b) Fax: (03) 2785 9901
c) E-mail: [email protected]
d) Walk-in:
Mondays - Thursdays Fridays Saturdays-Sundays/Public
Holidays
8.45 a.m. – 5.15 p.m. 8.45 a.m. – 12.30 p.m.
2.15 p.m. – 5.15 p.m.
Closed
e) Write in –
PMB Investment Berhad
Level 20, 1 Sentral,
Jalan Rakyat, Kuala Lumpur Sentral
50470 Kuala Lumpur
13.5 COMPLAINTS
Should you wish to complain, you may lodge your complaint by writing to:
Investor Relation Unit
PMB Investment Berhad
Level 20, 1 Sentral,
Jalan Rakyat, Kuala Lumpur Sentral
50470 Kuala Lumpur
Please state the date, time, place of occurrence, person involved and nature of your complaint. You may also
lodge your complaint through telephone calls by contacting the department.
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13.6 SECURITIES INDUSTRY DISPUTE RESOLUTION CENTER (SIDREC)
SIDREC is an independent body corporate, approved under Capital Markets and Services (Dispute
Resolution) Regulations 2010, established to resolve monetary disputes between investors and capital
market intermediaries registered as its members, such as stockbrokers, futures brokers, unit trust
management companies, and fund managers. If an investor has an unresolved claim with a capital market
intermediary, he or she may file a claim with SIDREC, either :-
a) In person
Mondays - Thursdays Fridays Saturdays-Sundays/Public
Holidays
8.45 a.m. – 5.15 p.m. 8.45 a.m. – 12.30 p.m.
2.15 p.m. – 5.15 p.m.
Closed
b) Write in –
Securities Industry Dispute Resolution Center,
Unit A-9-1, Level 9 Tower A, Menara UOA Bangsar,
No. 5, Jalan Bangsar Utama, 59000 Kuala Lumpur.
c) Fax: (03) 2282 3855
d) E-mail: [email protected]
For further enquiry, you may reach SIDREC via, telephone at (03) 2282 2280 or its website at
www.sidrec.com.my.
13.7 ANTI-MONEY LAUNDERING AND ANTI-TERRORISM FINANCING
(AML/CFT) POLICIES
a) General Policy
We have established an Anti-Money Laundering and Anti-Terrorism Financing (AMLCFT) Policies
and Procedures as required by the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds
of Unlawful Activities Act (AMLATFA) 2001. As such we will actively prevent and take measures to
guard against being used as a medium for money laundering and/or terrorism financing activities
and any other activity that facilitates money laundering and/or terrorism financing.
b) Investor’s Identification and Verification
Pursuant to the AMLATFA, we have put in place procedures for identification and verification of
investors. Hence, we require you to provide us with your name, date of birth, national registration
card number, residential and business address, (and mailing address if different), name of
beneficial owner, address of beneficial owner, national registration card number of beneficial
owner, date of birth of beneficial owner or other official identification when you open or re-open
an account.
Additional information from you may be required on a case by case basis in certain situations
throughout your investment with us in the Fund. Application without such information may not be
accepted and the application amount shall be returned to you.
c) Suspicious Transaction Reporting
We are obliged to report to the Financial Intelligence and Enforcement Department of Bank Negara
Malaysia on any transaction which may raise our suspicion that the source of the investment
capital is originated or received from money laundering and terrorism activities, or proceeds from
illegal activities.
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13.8 PRIVACY NOTICE UNDER PERSONAL DATA PROTECTION ACT 2010
Pursuant to the PDPA gazetted on 15th November 2013, we have put in place procedures in dealing with
your personal data being collected and retained by us. Please read our ‘Privacy Notice’ on our website
pmbinvest.com.my or request a copy of the Privacy Notice from our office.
13.9 GOODS AND SERVICES TAX (GST)
With effect from 1 April 2015, GST has been implemented to replace the current sales tax and service tax
regime currently at the rate of 6%.
Based on the Guide on Fund Management issued by Royal Malaysian Customs Department on 27th October
2013 (“Guide on Fund Management”), a unit trust fund is making exempt supplies. Any contribution made
to the Fund by its Unit Holders for the issuance of units in the Fund should be regarded as an exempt
supply of services and thus, should not be subject to GST.
The investment made by the Fund to maximize its returns is generally proposed to be treated as exempt
supply and not subject to GST. Any investment activity such as buying or selling of securities should
generally be exempted from GST. However any fee-based charges by the Fund should be a taxable supply
subject to GST at the standard rate of 6%, provided the Fund exceeds the GST registration threshold of
RM500,000 per annum of taxable supplies. Any GST incurred by the Fund on the manager’s fees, trustee
fees and other supplies received by the Fund are not claimable as input tax credit for GST purposes if the
Fund is not GST registered or even if GST registered, to the extent the supplies by the Fund are exempted
from GST.
Manager’s GST Registration No.: 000923279360
13.10 FOREIGN ACCOUNT TAX COMPLIANCE ACT (FATCA)
FATCA is a United States of America (US) statute that, among others, requires foreign financial institutions,
including us, to report to the Inland Revenue Service (IRS) of the US on clients who are US persons. US
persons refers to a citizen of US; an individual lawfully admitted for permanent residence of the US; an
unincorporated association with a substantial number of members who are citizens of the US or are
individuals lawfully admitted for permanent residence of the US; or a corporation incorporated in the US.
13.11 ZAKAT
The Fund does not allocate payment for zakat on capital gains and income distributions, on behalf of
Muslim individuals and Muslim legal entities that invest in the Fund since by doing so, would not fulfill their
zakat obligations. Thus, Unit Holders are required and advised to make their own arrangements in respect
of the payments of zakat.
Muslim individuals and legal entities who are investors of the Fund are required to pay zakat on trading and
investment income. To determine the amount of zakat payable, these investors need to add the principal
invested in the Islamic Fund plus the profits earned on these investments multiplied by 2.5%.
13.12 AUDITORS OF THE FUND
Messrs Jamal, Amin & Partners has been appointed as the auditors for the Fund. The Auditors may retire
upon giving three (3) month’s written notice to the Trustee provided any such notice must always expire
one (1) month prior to or two (2) months following the end of the current accrual period, or may be
removed at any time by the Trustee or by a resolution of Unit Holders holding not less than 2/3 of the units
in issue. Any vacancy in the office of the Auditors shall be filled by a qualified person appointed by the
Trustee.
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13.13 PLEDGING OF UNITS AS COLLATERAL
Units held by the Unit Holder may be pledged as collateral for loans to enhance your financial leverage.
However, this facility is only available subject to the approval of the banks or other financial institutions.
13.14 BORROWING TO PURCHASE UNITS
The Unit Holder has the option to purchase the Units through a loan scheme. However, if such facility is
utilised the margin of finance shall not exceed 67% of the amount invested (this limit is not applicable for
purchase of Units via credit/charge card). Any redemption of Units is subject to the related financial
institution’s approval. Investors are required to understand fully the risk disclosure statement on the loan
scheme before signing off on the statement provided. The risk disclosure statement is incorporated in the
application forms referred to and accompanied in the Prospectus.
13.15 PERIOD OF THE FUND
The commencement dates of the Fund is the date of launching or the date of the first Prospectus issued by
the Manager. The Fund may be terminated by the Trustee who will summon a meeting of Unit Holders due
to circumstances affecting the Manager. Otherwise the Fund may continue in operation or in existence if it
appears to be in the interest of the Unit Holders for such periods as agreed by the Trustee and the Manager.
13.16 LIST OF DISTRIBUTION CHANNELS
Other than the Head Office in Kuala Lumpur, Unit Holder may obtain this Prospectus, forms and purchase
the units of our funds at our regional offices as follows:
Regional Offices
Central Region
Wisma PMB, No. 1A, Jalan Lumut, 50400 Kuala Lumpur
Tel: (03) 4145 4000 Fax: (03) 4045 3800
Email: [email protected]
Manager: Suhaila binti Malzuki
Northern Region
No.46, 1/F Jalan Todak 2, Pusat Bandar Seberang Jaya, 13700 Perai
Tel: (04) 390 9036 Fax: (04) 390 9041
Email: [email protected]
Manager: Ahmad Shahril bin Md Yusof
Eastern Region
Lot D103, Tingkat 1, Mahkota Square, Jalan Mahkota, 25000 Kuantan
Tel: (09) 515 8545 Fax: (09) 513 4545
Email: [email protected]
Manager: Mohd Faeez Mohd Ab Aziz
Southern Region
No.17-01, Jalan Molek 1/29, Taman Molek, 81100 Johor Bahru
Tel: (07) 352 2120 Fax: (07) 351 2120
Email: [email protected]
Manager: Anuar bin Idrus
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Sarawak
No. 59, Tingkat 1, Jalan Tun Jugah, 93350 Kuching
Tel: (082) 464 402 Fax: (082) 464 404
Email: [email protected]
Manager: John Nyaliaw
Sabah
Lot 2-3-19C, Tingkat 2 Plaza Wawasan, Lorong Wawasan, 88000 Kota Kinabalu
Tel: (088) 244 129 Fax: (088) 244 419
Email: [email protected]
Manager: Yong Yin Kong
Financial Institutions for Auto Debit
a. Bank Simpanan Nasional
b. CIMB Bank Berhad
c. Malayan Banking Berhad/Maybank Islamic Berhad
d. RHB Bank Berhad/RHB Islamic Bank Berhad
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14. STATEMENT OF CONSENT
The auditors, bankers, company secretary, lawyers, tax adviser, Trustees, Shariah adviser for the Manager
and Shariah Adviser for the Fund have given their consent in writing before the issuance of this Prospectus
to act in that capacity in relation to this Prospectus and those consents have been lodged with the Securities
Commission Malaysia and have not subsequently been withdrawn.
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15. DOCUMENTS AVAILABLE FOR INSPECTION
For a period of not less than twelve (12) months from the date of this Prospectus, Unit Holders may inspect
the following documents or copies thereof during normal business hours at the Manager’s business office,
without charge:-
a) The Deed of the Fund;
b) Each material contract or document referred to in this Prospectus;
c) The latest annual and interim reports of the Fund;
d) All reports, letters or other documents, valuations and statements by any expert, any part of which is
extracted or referred to in this Prospectus;
e) Latest audited financial statements of the Manager and that of the Fund for the current financial year
(where applicable);
f) Audited financial statements of the Manager and that of the Fund for the last 3 financial years
preceding the date of this Prospectus;
g) Any consent given by experts or persons named in this Prospectus; and
h) Writ and relevant cause papers for all current material litigation and arbitration disclosed in this
Prospectus.
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APPENDICES