Asset Allotment:
Up to 95 % of the Fund’s NAV will be invested in equities. Minimum of 5 % of the Fund’s NAV will be invested in sukuk. Muslim debt instruments. Islamic money market instruments and/or liquid assets acceptable under Shariah rule Investment Strategy And Policy
RHB Islamic Growth Fund is geared towards investors who look for Shariah compliant instruments that provide long term capital grasp. The Fund will be chiefly puting in public listed companies with growing potency. sukuk. Islamic debt securities and other securities acceptable under the Shariah rules. Choice of equity investings of the Fund will be in line with those in the SC’s Shariah list which is updated and published twice a twelvemonth.
The External Investment Manager utilises a scheme that seeks beautifully priced companies in undervalued sectors. or in sectors that have strong upward stock monetary value impulse by seeking concerns that demonstrate strong addition in net incomes per portion and go on to beef up their cardinal capablenesss and competitory places. amongst others. The Fund may put in fixed income securities to continue the value of the Fund under volatile market conditions. For fixed income securities. the Fund seeks investings amongst the Shariah compliant fixed income documents that are of investing classs. As such. the equities keeping may be reduced.
Performance Benchmark:FTSE Bursa Malaysia Emas Shariah Index.
Securities may worsen in value due to factors impacting securities markets by and large or peculiar industries represented in the securities markets. The value of a security may worsen due to general market conditions which are non specifically related to a peculiar company. such as existent or perceived inauspicious economic conditions. alterations in the general mentality for corporate net incomes. alterations in involvement or currency rates or inauspicious investors’ sentiment by and large. They may besides worsen due to factors that affect a peculiar industry or industries. such as labour deficits or increased production costs and competitory conditions within an industry. Equity securities by and large have greater monetary value volatility than The public presentation of each single stock that a unit trust fund invests is dependent upon the direction quality of the peculiar company and its growing potency. Hence. this would hold an impact on the unit trust fund’s monetary values and its dividend income.
RHBIAM aims to cut down all these hazards by utilizing variegation that is expected to cut down the volatility every bit good as the hazard for the Fund’s portfolio. In add-on. RHBIM will besides execute uninterrupted cardinal research and analysis to help its active plus allotment direction particularly in its stock choice procedure. This hazard is associated with investings that are quoted in foreign currency denomination. When an implicit in fund is denominated in a foreign currency which fluctuates unfavorably against the Ringgit. the investing in the Fund may confront currency loss in add-on to the capital gains/losses. This will take to a lower NAV of the Fund. Currency hazards could be mitigated on a two-pronged attack. First by distributing the investable assets across differing currencies and secondly by using frontward contracts to fudge the currencies if it is deemed as necessary to make so. Chemical bond issuers may default or reschedule their refund.
When this occurs the value of the defaulted bond would fall and do the NAV of the underlying fund to worsen in a similar proportion. This hazard can be mitigated by careful choice of bond financess and in any instance this Fund merely invests in bond financess that invest in investing class bonds. The public presentation of equities and money market instruments held by the implicit in financess are besides dependent on company specific factors like the issuer’s concern state of affairs. If the company-specific factors deteriorate. the monetary value of the specific security may drop significantly and for good. perchance even regardless of an otherwise by and large positive stock market tendency. Risks include but are non limited to competitory operating environments. altering industry conditions and hapless direction.
Since the Fund invests into financess managed by other fund houses. the Manager has no control over the several fund houses’ investing technique. cognition or direction expertness. In the event of misdirection. the NAV of the Fund which invests into the Target Funds would be affected negatively. Although the chance of such happenings is far fetched. should the state of affairs arise the Manager militias the right to seek an alternate fund director and/or other corporate investing strategy that is consistent with the aim of the Fund. Any alterations in national policies and ordinances may hold an consequence on the capital markets in which the Target Fundss are puting. If this occurs there is a possibility that the unit monetary value of the Fund may be adversely affected. Since a big part of the Fund’s NAV is invested in the Target Fund. investing into the Fund assumes the hazards built-in in the several Target Funds.
The specific hazards to investors when puting in the Fund include the undermentioned: Investing director hazard
As this Fund invests at least 95 % of its NAV in the Target Fund. it is capable to the hazard associated with the investing director of the Target Fund. This is the hazard associated with the followers: – ( I ) The hazard that the investing director may under-perform the mark or the benchmark of the Target Fund due to the investing director doing hapless prognosiss of the public presentations of securities. plus classes or markets ; ( two ) The hazard of non-adherence to the investing aims. scheme and policies of the Target Fund. which may happen due to system failure or the oversight of the investing director ; and ( three )
The hazard of direct or indirect losingss ensuing from inadequate or failed operational and administrative procedures. systems and people. RHBIM has no control over the investing manager’s investing scheme. techniques and capablenesss. operational controls and direction of the Target Fund. Any misdirection of the Target Fund may negatively impact the NAV of the Fund. In the event of such happening. RHBIM would seek an alternate investing director and/or other mark fund that is consistent with the aim of the Fund.
Market hazard:
The value of the instruments in which the Target Fund invests. may travel up or down in response to the chances of single companies and/or predominating economic conditions. Movement of abroad markets may besides hold an impact on the local markets.
Currency hazard:
The Fund invests up to 95 % of its NAV in the Target Fund denominated in USD. Fluctuation in foreign exchange rates will impact the value of the Fund’s foreign investings when converted into local currency and later the value of Unit Holders’ investings. When USD moves unfavorably against the Ringgit. these investings will endure currency losingss. This is in add-on to any capital additions or losingss in the investing ( please note that capital additions or losingss in the Feeder Fund’s investing in the Target Fund is besides exposed to currency additions or losingss ensuing from fluctuations in the foreign exchange rates between USD and the other currencies which the Target Fund may be e exposed to. RHBIM may use the hedge of currencies to extenuate this hazard.
Liquid hazard:
The liquidness hazard that exists at the Fund degree is associated with the inability of the Target Fund to run into big salvation in a timely mode. In the event of big salvation petition that would ensue in the entire salvation portions in the Target Fund to be more than 10 % of the portions in the Target Fund or a peculiar portion category of the Target Fund. portion or all of such petitions for salvation may be deferred for a period typically non transcending 10s Target Fund Business Days.
Regulative hazard:
Any alterations in national policies and ordinances may hold an consequence on the capital markets in which the Target Fund is puting. If this occurs. there is a possibility that the unit monetary value of the Fund may be adversely affected.
Hazard of Substantial Redemptions
Significant salvations of portions within a limited period of clip could necessitate the Target Fund to neutralize places more quickly than would otherwise be desirable. which could adversely impact the value of the portions of the Target Fund. This hazard may be exacerbated where an investing with a fixed life or where investings using fudging techniques is made by the Target Fund. Suspension of NAV Calculation / Limitation of Redemption Payments The Umbrella Fund may in certain fortunes temporarily suspend the finding of the net plus value per portion of the Target Fund or a specific portion category of the Target Fund and the issue. salvation or exchange of portions or a peculiar portion category in the Target Fund. As farther described in the Target Fund Prospectus. if on any given day of the month petitions for salvation of portions relate to more than 10 % of the portions in the Target Fund or a peculiar portion category of the Target Fund. portion or all of such petitions for salvation may be deferred for a period typically non transcending 10s ( 10 ) Target Fund Business Days.
CIMB Principal
Equity fund
Investing aimTo supply investors with an chance to derive consistent and stable income by puting in a diversified portfolio of dividend giving equities and fixed income securities. The Fund may besides supply moderate capital growing potency over the medium to long term period.
Any material alterations to the investing aim of the Fund would necessitate Unit holders’ blessing.
Benchmark
As this Fund is an equity fund with up to 30 % of its NAV in foreign equities. the benchmark of the Fund is a composite comprising 70 % KLCI + 30 % MSCI AC Asia ex Japan. The information on KLCI can be obtained from hypertext transfer protocol: //www. bursamalaysia. com and local national newspapers. The information on MSCI AC Asia ex Japan can be obtained from hypertext transfer protocol: //www. msci. com/overview/index. hypertext markup language and Bloomberg L. P.
Investing policy and chief investing scheme
The Fund may put up to a upper limit of 98 % of its NAV in equities in order to derive long-run capital growing. The Fund may choose to put in foreign equities up to a upper limit of 30 % of its NAV. In line with its aim. the investing policy and scheme of the Fund will be to put in a diversified portfolio of high dividend giving stocks and/or fixed income securities aimed at supplying a stable income watercourse in the signifier of distributions to investors. The plus allotment scheme for this Fund is as follows: up to 98 % of the Fund’s NAV in a diversified portfolio of dividend giving equities and/or fixed income securities ; and at least 2 % in liquid assets.
The plus allotment will be reviewed sporadically depending on the country’s economic and stock market mentality. The Manager will underweight/overweight equities and/or fixed income securities when necessary. CIMB-Principal combines a top-down plus and sector allotment procedure with a bottom-up stock choice procedure. The plus allotment determination is made after a reappraisal of macroeconomic tendencies in Malaysia and other planetary economic systems. In peculiar. CIMB Principal analyzes the way of GDP growing. involvement rates. rising prices. currencies and authorities policies. CIMB-Principal will so measure their impact on corporate net incomes and find if there are any predictable tendencies. These tendencies form the footing for sector choice. The standard for stock choice would include stocks that have a average term ( 2 to 5 old ages ) dividend record or a annual distribution policy.
The Manager will besides actively hunt for under-valued high dividend giving stocks that may besides offer assuring long term capital grasp. Stock rating basicss considered are net incomes per portion growing rate. return on equity. monetary value net incomes ratio and cyberspace touchable assets multiples. As portion of its hazard direction scheme. the Fund is constructed and managed within pre-determined guidelines. CIMB-Principal employs an active plus allotment scheme depending upon the equity market outlooks. Where appropriate. the Manager will besides use an active trading scheme in pull offing the Fund. As this Fund is defensive in nature and designed to provide for the demands of more risk-averse equity investors. this Fund will function good in bear market conditions.
However. in bull market the Fund will underachieve the market as the Manager will non take on more hazard to deviate into extremely volatile aggressive stocks. Further. in times of hardship in equity markets and as portion of its hazard direction scheme. CIMB-Principal may from clip to clip cut down its proportion of higher hazard assets. such as equities and increase its plus allotment to lower hazard assets. such as unsecured bonds and liquid assets. to safeguard the investing portfolio of the Fund provided that such investings are within the investing aim of the Fund. When deemed necessary. the Manager may besides use derivative instruments. topic to the SC Guidelines. for intents such as hedge.
The Manager has appointed CIMB-Principal ( S ) . as the Sub-Manager for the foreign investings of this Fund with the blessing of the SC and the Trustee. CIMB-Principal ( S ) will be responsible for puting and pull offing these foreign investings in conformity with the investing aim and within the investing limitations. All costs of this assignment will be borne by the Manager to guarantee no extra fee is levied on the Unit holders of this Fund. The Fund may put in foreign markets where the regulative governments are members of the International Organisation of Securities Commissions ( IOSCO ) .
The Fund’s investings in foreign markets will be capable to the bound set by BNM and any conditions imposed by the SC from clip to clip. Presently. the Fund’s keeping in foreign investings will non transcend 30 % of its NAV. The Sub-Manager may put beyond this bound provided the blessings are obtained from the relevant governments ( where necessary ) and any addition will be reflected in a auxiliary prospectus ( if deemed necessary ) . Notwithstanding the aforesaid. the Sub-Manager may make up one’s mind non to put in foreign securities as may be agreed upon by the Manager from clip to clip.
Balanced fundInvesting aim:
To turn the value of investing over the long term through a diversified portfolio with equity and fixed income securities. Any material alterations to the investing aim of the Fund would necessitate Unit holders’ blessing.
Benchmark:
As this Fund may put up to 60 % of it NAV in equities with the balance in fixed income securities. the benchmark of the Fund is a composite comprising 60 % KLCI + 40 % CIMB Bank 1-month Fixed Deposit Rate. The information on KLCI can be obtained from hypertext transfer protocol: //www. bursamalaysia. com and local national newspapers. The information on CIMB Bank 1-month Fixed Deposit Rate can be obtained from CIMB Bank web site ( World Wide Web. cimbbank. com. my ) . Investing policy and chief investing scheme
The Fund purposes to put in a diversified portfolio of equities and fixed income investings. In line with its aim. the investing policy and scheme of the Fund will be to keep a balanced portfolio between equities and fixed income investings in the ratio of 60:40. The fixed income part of the Fund is to supply some capital stableness to the Fund whilst the equity part will supply the added return in a lifting market. The investings by the Fund in equity securities shall non transcend 60 % of the NAV of the Fund and investings in fixed income securities and liquid assets shall non be less than 40 % of the NAV of the Fund with a minimal evaluation of “BBB3” or “P3” by RAM or tantamount evaluation by MARC. Moody’s. S & A ; P or Fitch. The plus allotment scheme for this Fund is as follows:
the equity securities will non transcend 60 % of the Net Asset Value of the Fund ; investings in fixed income securities and liquid assets shall non be less than 40 % of the NAV of the Fund ; and at all times. at least 2 % of the NAV of the Fund must be maintained in liquid assets. The plus allotment will be reviewed sporadically depending on the country’s economic and stock market mentality. In a lifting market. the 60 % bound may be breached. However. the Manager will seek to set this within a clip frame approved by the Trustee. CIMB-Principal will follow an active trading scheme and is hence particularly selective in the purchasing and merchandising of securities for the Fund. For the fixed income part. CIMB-Principal formulates the involvement rate mentality by sing factors such as the Malayan rising prices rate. pecuniary policies and economic growing. With an involvement rate mentality and output curve analysis. CIMB-Principal identifies the weighting of the investing tenor and recognition for the Fund.
In the improbable event of a recognition evaluation downgrade. the investing director militias the right to cover with the security in the best involvement of the Unit holders. As active fund directors. CIMB-Principal has in topographic point flexible tolerance bounds to provide to such state of affairss. CIMB-Principal can for illustration. go on to keep the downgraded security if the immediate disposal of the security would non be in the best involvement of the Unit holders. For the equities part. CIMB-Principal combines a top-down plus and sector allotment procedure with a bottom-up stock choice procedure. The plus allotment determination is made after a reappraisal of macroeconomic tendencies in Malaysia and other planetary economic systems. In peculiar. CIMB-Principal analyzes the way of GDP growing. involvement rates. rising prices. currencies and authorities policies. CIMB Principal will so measure their impact on corporate net incomes and find if there are any predictable tendencies. These tendencies form the footing for sector choice. Stock choice is based on the growing manner of equity investment.
As such. the standard for stock choice would include bettering basicss and growing at sensible ratings. Stock rating basicss considered are net incomes per portion growing rate. return on equity. monetary value net incomes ratio and cyberspace touchable assets multiples. As portion of its hazard direction scheme. the Fund is constructed and managed within pre-determined guidelines. Basically. CIMB Principal employs an active plus allotment scheme depending upon the equity market outlooks. and at the same clip proctors the bond portfolio harmonizing to three ( 3 ) parametric quantities: tenor. recognition evaluations and sector. The continuance of the bond portfolio is besides monitored and modified harmonizing to the Manager’s involvement rate mentality ( i. e. the sensitiveness of the portfolio to involvement rate alterations ) .
In response to adverse conditions and as portion of its hazard direction scheme. CIMB-Principal may from clip to clip cut down its proportion of higher hazard assets. such as equities and increase its plus allotment to lower hazard assets. such as unsecured bonds and liquid assets. to safeguard the investing portfolio of the Fund provided that such investings are within the investing aim of the Fund. Additionally. for investings in debt markets. the Manager may cut down retentions in longer tenured assets and impart these monies into shorter-term involvement bearing sedimentations. When deemed necessary. the Manager may besides use derivative instruments. topic to the SC Guidelines. for intents such as hedge.
Chemical bond fundInvesting aim:
The aim of CIMB-Principal Bond Fund is to supply regular income every bit good as to accomplish medium to long term capital grasp through investings chiefly in Malayan bonds. Any material alterations to the investing aim of the Fund would necessitate Unit holders’ blessing.
Benchmark:
The benchmark of the Fund is the RAM Quant store MGS Bond Index ( Medium Sub-Index ) . Information on the benchmark can be obtained from hypertext transfer protocol: //www. quantshop. com Investing policy and chief investing scheme
Up to 98 % of the Fund’s NAV may be invested in unsecured bonds transporting at least an “A3” or “P2” evaluation by RAM or tantamount evaluation by MARC. Moody’s. S & A ; P or Fitch. The remainder of the Fund is maintained in the signifier of liquid assets to run into any salvation payments to Unit holders. In line with its aim. the investing scheme and policy of the Fund is to put in a diversified portfolio of sanctioned fixed income securities dwelling chiefly of bonds. aimed to supply a steady watercourse of income. The plus allotment for the Fund is as follows:
• up to 98 % in unsecured bonds and other allowable investings ; and • at least 2 % in liquid assets.
The plus allotment scheme will be reviewed sporadically depending on the country’s economic and bond market mentality. CIMB Principal will follow an active trading scheme and will be particularly selective in the purchasing and merchandising of securities for the Fund. CIMB-Principal formulates an involvement rate mentality through analyzing factors such as the Malayan rising prices rate. pecuniary policies and economic growing. With an involvement rate mentality and output curve analysis. CIMB-Principal identifies the weighting of the investing tenor and recognition for the Fund. In the improbable event of a recognition evaluation downgrade. the Manager militias the right to cover with the security in the best involvement of the unit holders. As active fund directors. CIMB-Principal has in topographic point flexible tolerance bounds to provide to such state of affairss. CIMB Principal can for illustration. go on to keep the downgraded security if the immediate disposal of the security would non be in the best involvement of the unit holders.
As portion of its hazard direction scheme. the Fund is constructed and managed within pre-determined guidelines. Basically. CIMB Principal monitors the bond portfolio harmonizing to three ( 3 ) parametric quantities: tenor. recognition evaluations and sector. The continuance of the bond portfolio is besides monitored and modified harmonizing to the Manager’s involvement rate mentality ( i. e. the sensitiveness of the portfolio to involvement rate alterations ) . In response to adverse conditions and as portion of its hazard direction scheme. CIMB-Principal may cut down retentions in longer tenured assets and impart these monies into shorter-term involvement bearing sedimentations. The Manager may besides from clip to clip put in liquid assets to safeguard the investing portfolio of the Fund provided that such investings are within the investing aim of the Fund. When deemed necessary. the Manager may besides use derivative instruments. topic to the SC Guidelines for intents such as hedge.
Invesco Asia Infrastructure Fund ( “the Target Fund” ) is a sub-fund of Invesco Funds ( the “SICAV” ) . The SICAV is incorporated as a societe anonyme under the Torahs of the Grand-Duchy of Luxembourg and qualifies as an open-ended societe d’investissement a capital variable. The SICAV is authorized as an project for corporate investing in movable securities under the jurisprudence of 20th December. 2002. The SICAV was incorporated in Luxembourg on 31st July. 1990. The Directors of the SICAV are responsible for the direction and disposal of the SICAV and for its overall investing policy.
The Directors of the SICAV have appointed Invesco Management S. A. as direction company to be responsible on a twenty-four hours to twenty-four hours footing under the supervising of the Directors. for supplying disposal. selling. investing direction and advice services in regard of all Invesco Funds. Invesco Management S. A. has delegated the investing direction services to Invesco Hong Kong Limited ( “Invesco Hong Kong” ) . who has discretional investing direction powers in regard of the Target Fund. Invesco Management S. A. was incorporated as a “societe anonyme” under the Torahs of the Grand Duchy of Luxembourg on 19th September 1991 and its articles of incorporation are deposited with the Luxembourg Registre de Commerce et diethylstilbestrols Societes. Invesco Management S. A. is approved as a direction company regulated by chapter 13 of the 2002 Law. As at December 2007. its capital sums to USD 3. 840. 000 and the Directors of the SICAV are besides composing the board of managers of Invesco Management S. A.
Invesco Management S. A. shall guarantee conformity of the SICAV with the investing limitations and supervise the execution of the SICAV’s schemes and investing policy. Invesco Management S. A. shall direct studies to the Directors of the SICAV on a quarterly footing and inform each board member without hold of any disobedience of the Company with the investing limitations. J. P. Morgan Bank Luxembourg S. A. ( “JPMorgan” ) has been appointed as the Custodian of the assets of the SICAV which will be held either straight by JPMorgan or through letter writers. campaigners. agents or delegates of JPMorgan. J. P. Morgan was incorporated as a societe anonyme incorporated on 16th May. 1973 and has its registered office at 6. path de Treves. L-2633 Senningerberg. Grand- Duchy of Luxembourg.
Investing aim and policy
The Target Fund aims to accomplish long term capital growing from investings in a diversified portfolio of Asiatic securities of issuers which are preponderantly engaged in substructure activities. At least 70 % of the entire assets of the Target Fund ( without taking into history accessory liquid assets ) shall be invested in equity and debt securities denominated in any exchangeable currency issued by Asiatic companies preponderantly active in the substructure sector. “Asian companies” shall intend companies listed in an Asiatic stock market and holding their registered office in an Asiatic state or established in other states but transporting out their concern activities preponderantly in Asia or keeping companies puting preponderantly in equity of companies holding their registered office in an Asiatic state. Up to 30 % of the entire assets of the Target Fund may be invested in sum in hard currency and hard currency equivalents. money market instruments. equity and equity related instruments or debt securities ( including exchangeable debt ) issued by companies or other entities non run intoing the above demand.
Invesco Hong Kong is an active director uniting bottom-up and top-down multi-factor analysis. although they have a strong focal point on bottom-up stock choice where they believe it can add value. The investing existence chiefly includes companies in the Asia Pacific ex-Japan part that are chiefly engaged in infrastructure-related activities. including companies that are involved in supplying the foundation of basic services. installations and establishments upon which the growing and development of a community depends. In add-on. ‘soft’ substructure that includes fiscal support ( e. g. undertaking financing from investing Bankss ) and care support ( e. g. direction of communicating webs ) besides fall into this definition. Broadly talking. substructure can be classified as but is non limited to: Economic Infrastructure – to back up the long term growing of the economic system.
These assets have a long operating life and strong monopoly place. Examples: roads. airdromes and ports. Utilities – to supply indispensable services for the community. Examples: gas/ energy/ electricity coevals. distribution and retailing. H2O distribution and waste intervention. Social Infrastructure – to supply public sector installations for the society. This sector has emerged as authoritiess have embraced the public private partnership construct in order to promote operation efficiency.
Examples: train Stationss. infirmaries. schools and bowls. Commercial substructure – private sector enterprises to provide for engineering promotion. Examples: orbiters. overseas telegram webs and renewable power workss. For the intent of this Fund. the Manager will be puting in Class C of the Target Fund. As at LPD. merely Accumulation Shares are available for this portion category. Investors keeping Accumulation Shares will non have any distributions. Alternatively. the income due to them will be rolled up to heighten the value of the Accumulation Shares.
