cover prospektus AMBDanaNabeel view - … · Razak, Kuala Lumpur or any Maybank, Bank ... completeness of this Prospectus, ... 11 Tax Advisor [s Letter

PREFACE

Dear Prospective Investors of AMB Dana Nabeel

Thank you for considering an investment in AMB Dana Nabeel (“AMBDN” or “Fund”).

On behalf of the Board of Directors of Amanah Mutual Berhad (“The Manager”), we wish to inform you that the Fund is an open-ended fund with the objective of providing investors with high level liquidity and regular income stream, whilst maintaining capital preservation* by investing in a diversified portfolio of Islamic money market instruments.

In order to achieve Fund’s investment objective, the Fund will invest at least 90% of it’s Net Asset Value (NAV) in quality Shariah-compliant deposit and Islamic money market instruments and up to 10% of its NAV may be invested in Shariah–compliant debentures. The instruments and debentures invested in would have a minimum short term local credit rating of at least BBB/P2 by RAM, MARC or equivalent rating agencies.

In view of the above, suitable investors include retail and corporate investors who seek Shariah-compliant investment, conservative and prefer an investment with high liquidity.

As with any investment, investors should also be aware of the inherent specific risks of investing in AMBDN which include interest rate risk, counterparty risk, credit/default risk. Further information on the risk factors can be reviewed in Section 2.1 on page 18 of this Prospectus.

There is no sales charge and repurchase charge imposed for this Fund. However, there are other direct and indirect fees and charges that will be incurred by investors when Units of the Fund are purchased or repurchased such as management fee, trustee fee and switching fee. Details of all fees and charges are disclosed in Chapter 4 – Fees, Charges and Expenses on page 30 of this Prospectus.

Investments in our Funds can be made directly at our office at 34th floor, Menara PNB, Jalan Tun Razak, Kuala Lumpur or any Maybank, Bank Rakyat Distribution Branches nearest to you. In addition, you could also purchase and/or repurchase Units at ASNB branches or any other IUTA branches appointed by the Manager from time to time nationwide. Corporate details of our office are on page 9, while information on our distributors is available on page 84 of this Prospectus.

We recommend that you read this Prospectus in its entirety before making an investment decision and if in doubt, investors should consult their own professional adviser. Should you require further clarification, feel free to call our Client Services at 03-20340800 or email us at [email protected]. You are also welcome to browse our company website, www.ambmutual.com.my for more information.

As always, we thank you for allowing us to be of service to you.

Yours faithfully, For and On Behalf of Amanah Mutual Berhad

Aldilla@Zilfalila binti Abdul Halim (Sheila Halim) Chief Executive Officer

*Capital preservation does not signify that the capital/principal invested is guaranteed/protected by any party.

http://www.ambmutual.com.my/

RESPONSIBILITY STATEMENT

This Prospectus has been reviewed and approved by the Directors of Amanah Mutual 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 the Prospectus false or misleading.

STATEMENTS OF DISCLAIMER

The Securities Commission has approved the issue of, offer for subscription or purchase, or issue an invitation to subscribe for or purchase units of the unit trust fund and a copy of this

Prospectus has been registered with the Securities Commission.

The approval, and registration of this Prospectus, should not be taken to indicate that the Securities Commission recommends the Fund or assumes responsibility for the correctness of

any statement made or opinion or report expressed in this Prospectus.

The Securities Commission is not liable for any non-disclosure on the part of the management company responsible for the Fund and takes no responsibility for the contents in this Prospectus. The Securities Commission 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 its contents.

INVESTORS SHOULD RELY ON THEIR OWN EVALUATION TO ASSESS THE MERITS AND RISKS OF THE INVESTMENT. IN CONSIDERING THE INVESTMENT, INVESTORS WHO ARE IN DOUBT ON THE ACTION TO BE TAKEN SHOULD CONSULT PROFESSIONAL ADVISERS

IMMEDIATELY.

No units will be issued or sold based on this Prospectus later than one year after the date of this Prospectus.

Investors are advised to note that recourse for false or misleading statements or acts made in connection with the Prospectus is directly available through sections 248, 249 and 357 of

the Capital Markets and Services Act 2007.

AMB Dana Nabeel has been certified as being Shariah compliant by the Shariah Advisors appointed for the Fund.

AMB Client Services (603) 2034 0800 | 1

Contents

Glossary of Terms/Abbreviations ……………………………………………………………………………......... 4 Corporate Information …………………………………………………………………………............................. 9 1 Summary of Key Features of the Fund……………………………..………………………………... 11 1.1 General Information on AMBDN ..………..………………………………………….…………………… 11 1.2 Fees and Charges ……………………………………………………………………...…………..………….... 13 1.3 Information on Transactions ……………………………………………..…………………………………. 15 1.4 Other Information ………………………………………………………………………………………………… 17 2 Risk Factors ….………………………………………………………………………………………………..…… 18 2.1 Risks of Investing in Unit Trusts ……………………………………………………………………………. 18 3 Detailed Information on the Fund ………………………………………………………………........ 21 3.1 Fund’s Profile ……………………………………………………………..………………………………………… 21 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.10.1 3.10.2 3.10.3 3.11 3.12 3.13 3.14 3.15 3.16

Investment Objective of the Fund ………………………………………………………………………… Maximum Approved Fund Size ..…………………………………………………………………………… Investors’ Profile …………………………………………………………………………………………….……. Asset Allocation…………………………………………………………………………………………………….. Benchmark …………………………………………………………………………………………………………… Specific Benefits of Investing in AMBDN ………………………………………………………………. Investment Policy / Approach ………………………………………………………………………………. Investment Strategy / Investment Mechanism ……………………………………………...…….. Investment Process of the Fund …………………………………………….…………………………….. Committee Responsibilities ………………………………………………………..………………………… Investment Process ……………………………………………………………………….……………………… Cleansing/ Purification Process ………………………………………………………….…………………. Steps to be Taken in the event of a Rating Downgrade ..………………………………………. Permitted Investments for AMBDN…………………….………………………………………………… Investment Restrictions ………………………………………………………………….……………………. Exceptions and Exclusions Applicable to the Fund ………………………….……………………. Policy on Gearing and Liquid Assets……………………..………………………….……………………. Bases of valuation of investments …………………………………………………..…………………….

21 21 21 21 22 22 22 23 23 24 25 26 26 26 27 27 28 29

4 Fees, Charges and Expenses ……………………………………………………………………………….. 30 4.1 Charges ………………………….…………………………………………………………………..................... 30 4.1.1 Sales Charge ………………………….…………………………………………………….………………......... 30 4.1.2 Repurchase / Redemption Charge …………………………………………………………................ 30 4.1.3 Switching Charge…………………………………………………………………………….……………………. 31 4.1.4 Transfer Charge...………………………………………………………………………………….……………... 31 4.1.5 Other Administrative Charge ………………………………………………………………….……………. 31 4.2 Fees …………….…………………………………………………………………………………………..…………… 32 4.2.1 Management Fee…………………………………………………………………………………….………..….. 32 4.2.2 Trustee Fee ………………………………………………………………………………………….………………. 32 4.3 Fund’s Expenses ………………………….……………………………………………………….………………. 32 4.4 Others ………………………………………………………………………………………………….…….……...... 32 4.4.1 Policy on Brokerage Rebates and Soft Commissions ………………………….…………….…… 32 4.4.2 4.4.3

Portfolio Turnover Ratio (PTR) ………………………………………………………………………….….. Management Expense Ratio (MER) ...……………………………………………………………………

33 33


5 Transaction Information ..……………..…………………………………………………………….….… 34 5.1 Valuation of Units ………………………………………………………………………………….….………… 34 5.2 Pricing of Units ………………………………………………………………………………….………..……… 34 5.2.1 Single Pricing Policy ………………………………………………………………………………………....... 34 5.2.2 Forward Pricing ……………………………………………………………………………….………………….. 36 5.3 Transactions …………………………………………………………………………………………….…………. 36 5.3.1 How to Purchase Units of the Fund …..……………………………………………………..…………. 37 5.3.1.1 Making an Initial Investment …………………………………………………………………….………... 37 5.3.1.2 Making an Additional Investment ……………………………………………………………..………… 38 5.3.2 How to Repurchase Units of the Fund …………………………………………………….….………. 39 5.3.3 Transfer of Units ……………………………………………………………………………………..………….. 40 5.3.4 Switching Facility ……………………………………………………………………………………..…………. 41 5.4 Where to Purchase, Repurchase, Transfer and Switch …………………..……..……….…… 42 5.5 Cooling-Off Right ………………………………………….……………………………………….……………. 42 5.6 Minimum Holdings to Maintain Account …………………………………………………….….…… 43 5.7 Conditions for the Fund ……………………………………………………………………………….…….. 44 5.8 Understanding Income Distribution ………………………………………………………………..….. 44 5.8.1 Distribution Policy ………………………………………………………………………………………….…... 44 5.8.2 What Comprises Income Distribution? ……………………………………………………..………… 44 5.8.3 Mode of Payment for the Income Distribution ………………………………………..…………. 44 5.9 Policy on Unclaimed Monies …………………………………………………………………..………….. 44 5.10 Error in Pricing ……………………………………………………………………………………………………. 45 6 The Management and Administration of the Fund ……………………………………….…. 46 6.1 Corporate Profile of the Manager ……………………………………………………………………… 46 6.2 Past Performance of the Manager ………………………………..…………………………………… 47 6.3 Profile of the Board of Directors of the Manager ……………..………………………………. 47 6.3.1 Company Secretary ……………………………………………………………………………………………. 50 6.3.2 Senior Compliance Officer ………………………………………………………………………………… 50 6.4 Profile of the Key Management Staff of the Manager ……………………………………….. 51 6.5 The Investment Committee of the Fund ………………………………………..…………………. 52 6.6 The Shariah Committee ……………………………………………………………………………………… 53 6.6.1 Roles and Responsibilities of the Shariah Committee Members ………………………… 53 6.6.2 Shariah Committee Members ……………………………………………………………………………. 53 6.7 Profile of the EIM……………………………………… ……………………………………………………… 55 6.7.1 Permodalan Nasional Berhad …………………………………………………............................ 55 6.7.2 Designated Investment Manager of the Fund …………………………………………………… 56 6.7.3 Duties of the External Investment Manager ……………………………………………………… 56 6.7.4 Declaration of Absence of Conflict of Interest involving EIM ..…………………………… 56 6.8 Manager’s Disclosure of Material Litigation and Arbitration ……………………………… 57 7 The Trustee of the Fund ………………………………………………………………………………… 58 7.1 Profile of AmanahRaya Trustees Berhad ………….………………………………………………… 58 7.2 Trustee’s Responsibility Statement ..………………………………………………………………… 60 7.3 Trustee’s Disclosure of Material Litigation and Arbitration ……………………………….. 61 7.4 Duties and Obligations of the Trustee ……………………………………………………………… 61 7.5 Retirement, Removal or Replacement of the Trustee ………………………………………. 62 7.6 Powers of the Trustee to Remove or Replace the Manager ……………………………….. 62


8 Salient Terms of The Deed …………………………………………………………………………………. 64 9 Exemptions Granted by the SC …………………………………………………………………….…… 67 10 Related Party Transactions/Conflict of Interest ………….……………………………….….. 69 10.1 Existing and Potential Related Party Transactions……………………………………………….. 69 10.2 Conflict of Interest ………………………………………………………………………………………………. 69 10.3 Policies on Dealing with Conflict of Interest Situations……………………………………….… 69 10.3.1 Policies on Dealing with Conflict of Interest Situations by the Manager………………. 69 10.3.2 Policies on Dealing with Conflict of Interest Situations by the EIM………………………. 70 10.4 Details of AMB’s Directors’ Direct and Indirect Interest in Other Corporations

Carrying on a Similar Business………………………………………………………………………….….. 70

10.5 Details of AMB’s Substantial Shareholders’ Direct and Indirect Interest in Other Corporations Carrying on a Similar Business…………………………………………………….…..

70

10.6 Declaration of Conflict of Interest…………………………………………………………………….….. 70 11 Tax Advisor’s Letter ................................................................................................. 71 12 Consents …………………………………………………………………………………………….………………. 78 13 Documents Available for Inspection ...................................................................... 79 14 Rights and Liabilities of a Unit Holder ……………………………………..………………………… 80 14.1 Rights of a Unit Holder …………………………………………………….…………….……………………. 80 14.2 Liabilities of a Unit Holder ………………………………………………….……………………………….. 80 15 Communications with Unit Holders ………………………………………………..…………….…… 81 15.1 Customer Information Service …………………………………………………………………………..… 81 15.2 Regular Reports and Statements on your Investment …………………………………….…… 81 15.3 Register of Unit Holders ………………………………………………………………………………………. 82 15.4 Policies Adopted by AMB to Avoid Money Laundering Activities …………………….…… 82 15.5 Material Contracts ………………………………………………………………………………………….…… 83 16 List of Distributors’ Offices ……………………………………………….……………………………….. 84


Glossary of Terms / Abbreviations

The following words or abbreviations shall have the following meanings in the current Prospectus unless otherwise stated:

“Act” or “CMSA” The Capital Markets and Services Act, 2007 including all amendments thereto and all regulations rules and guidelines issued in connection therewith.

“AMB” or “Manager” Amanah Mutual Berhad (AMB) (195414-U).

“AMB Family of Funds”

All Funds under the management of the Manager.

“ASNB” “AMBDN” “ART”

“Bursa Malaysia”

Amanah Saham Nasional Berhad (47457-V), the holding company of the Manager. AMB Dana Nabeel. AmanahRaya Trustees Berhad (766894-T).

Bursa Malaysia Securities Berhad (635998-W).

“Business Day(s)” A day on which the Bursa Malaysia is open for trading in securities.

“BAFIA” Banking and Financial Institution Act 1989, including all amendments thereto and all regulations, rules and guidelines issued in connection therewith.

“Cooling-off Period” The cooling-off period for the Fund is 6 Business Days commencing from the date of purchase i.e. the date on which the Manager receives the application form and the investment amount.

“Cooling-off Right” The right of a qualified Unit Holder to change his mind and cancel an investment in the Fund.

“Deed”

The Deed including any supplementary deed between the Manager and the Trustee for AMBDN.

“Distribution Branch” Any branch, outlet or any other premises of the IUTA used as distribution channel for the purpose of marketing and distribution of Units.

“Eligible Market” Any market, such as the stock market, futures market, money market, any over-the-counter private debt securities market, as agreed in writing from time to time by the Manager and Trustee, which falls within the definition of an eligible market as defined in the Guidelines.

“EPF” Employee Provident Fund.


“EPF-MIS” EPF-Members’ Investment Scheme.

“External Investment Manager” or “EIM”

Permodalan Nasional Berhad (38218-X).

“FiMM” Federation of Investment Managers Malaysia.

“Forward Pricing” “FBM EMAS Shariah Index” “Fund”

The price of a unit that is the NAV per Unit calculated at the next valuation point after an instruction or a request is received. FTSE Bursa Malaysia EMAS Shariah Index. AMBDN.

“GIA” “GII”

General Investment Account. Government Investment Issues.

“Guidelines” The Guidelines on Unit Trust Funds and any other relevant guidelines on unit trust funds issued by the SC as amended, modified or varied by any notes, circular and guidelines issued from time to time by the SC.

“IOP” “Investment Committee”

The Initial Offer Period of 21 days commencing from the date of this Prospectus. The Investment Committee of the Fund primarily responsible for formulating, implementing and monitoring the investment management strategies of the Fund in accordance with the respective investment objectives of the Fund.

“Investment Management Agreement”

The agreement between AMB and the EIM setting out the terms and conditions upon which the EIM has been appointed and has agreed to act as the EIM of the Fund.

“IUTA” or “Distributor” Any Institutional Unit Trust Agent appointed by the Manager, which is an institution, a corporation or an organisation that is registered with FiMM in accordance with their guidelines to distribute the Units.

“LPD”

The latest practicable date for the purpose of ascertaining the information contained in this Prospectus, 31 January 2011.


“Licensed Financial institution” Any bank or financial institution licensed under BAFIA or the Islamic Banking Act 1983.

“Management Expense Ratio” or “MER”

The ratio of the sum of the fees and the recovered expenses of the Fund to the average value of the Fund calculated on a daily basis, as follows:

100 x basisdaily a on calculated Fund the of value Average

Fund the of expenses recovered Fund the of Fees

Where:

Fees = All ongoing fees deducted/deductible directly from the Fund in respect of the period covered by the management expense ratio, expressed as a fixed amount, calculated on a daily basis. This would include the annual management fee, the annual trustee fee and any other fees deducted/deductible directly from the Fund;

= All expenses recovered from /charged to the

Fund as a result of the expenses incurred by the operation of the Fund, expressed as a fixed amount. This should not include expenses that would otherwise be incurred by an individual investor (e.g. brokerage, taxes and levies);and

= The NAV of the Fund, including the net

income value of the Fund, less expenses on an accrued basis, in respect of the period covered by the management expense ratio, calculated on a daily basis.

“Maybank Islamic”

Maybank Islamic Berhad (787435-M).

“NAV” “NAV of the Fund”

Net Asset Value of the Fund The NAV of the Fund is determined by deducting the value of all the Fund’s liabilities from the value of all the Fund’s assets, at the Valuation Point. For the purpose of computing the annual management fee and annual trustee fee, the NAV of the Fund should be inclusive of the management fee and trustee fee for the relevant day.

“NAV per Unit”

The NAV of the Fund divided by the number of Units in Circulation, at the valuation point.

Average Value of The Fund

Recovered Expenses


“PNB” Permodalan Nasional Berhad (38218-X), the ultimate holding company of the Manager.

“Portfolio Turnover Ratio” or “PTR”

The ratio of the average sum of the acquisitions and disposals of the Fund for the year to the average value of the Fund for the year calculated on a daily basis, as follows:

basisdaily a on calculated year the for Fund the of value Average

2 /year] the for Fund the of disposals Total

year the for Fund the of nsacquisitio [Total

“Purchase Price of Units” “RAM”

The buying of Units by Unit Holders in the Fund is calculated at the NAV per Unit. Rating Agency of Malaysia Holdings Berhad (208095-U).

“RM” “Repurchase Price of Units”

Ringgit Malaysia. The repurchase of Units by Unit Holders in the Fund is calculated at NAV per Unit.

“SC”

Securities Commission Malaysia.

“Shariah Committee Members”

The committee members appointed by the Manager for AMBDN.

“Shariah Principles” “Sukuk”

Shariah principles are based on Islamic law, originating from the Quran as well as practices and explanations rendered by the Prophet Muhammad (PBUH), Ijma’, Qiyas and Ijtihad of ulama’ (personal reasoning of Islamic jurists). Means a document or certificate, documenting the undivided pro-rated ownership of underlying assets. The sak (singular of sukuk) is freely traded at par, premium or discount. In Malaysia, the term sukuk is used for fixed income securities which comply with Shariah requirements. However, it is normally used together with Shariah principles applied in the structure, such as Bai Bithaman Ajil, Murabahah, and Istisna’ for underlying transactions based on indebtedness, or Musyarakah and Mudharabah for underlying transactions based on partnerships.

“Trustee” ART as trustee for AMBDN.

“Unit Holder(s)”

A person or persons registered as holder(s) of a Unit or Units of the Fund and whose name appears in the Register of Unit Holders.


“Units” Units of the Fund.

“Units in Circulation” or “UIC”

Units of the Fund created and fully paid.

“Valuation Point” Such time(s) on a Business Day as may be decided by the Manager wherein the NAV of the Fund is calculated. Under normal circumstances, only one valuation is conducted on each Business Day.

Definitions or meanings of words not otherwise expressed above shall follow the meaning or interpretation as ascribed in the Guidelines issued by the SC and any other relevant laws governing unit trust fund.


Corporate Information

MANAGER Amanah Mutual Berhad (195414-U) Registered Office 4th Floor, Balai PNB 201-A, Jalan Tun Razak 50400 Kuala Lumpur Telephone : (603)2050 5100 Facsimile : (603)2163 3477 Principal Office 34th Floor, Menara PNB 201-A, Jalan Tun Razak 50400 Kuala Lumpur Telephone : (603)-2034 0800 Facsimile : (603)-2162 5958 / (603)-2163 3212 AMB Client Services : (603)-2034 0800 Email : [email protected] Website : www.ambmutual.com.my BOARD OF DIRECTORS

Tun Ahmad Sarji bin Abdul Hamid Chairman (Non-Executive/Non-Independent Director)

Tan Sri Dato’ Sri Hamad Kama Piah bin Che Othman

(Non-Executive/Non-Independent Director)

Tan Sri Dato' Dr. Wan Mohd. Zahid bin Mohd. Noordin

(Non-Executive/Independent Director)

Tan Sri Dato' Md. Desa bin Pachi (Non-Executive/Independent Director)

Dato’ Idris bin Kechot (Non-Executive/Non-Independent Director)

INVESTMENT COMMITTEE MEMBERS • Tun Ahmad Sarji bin Abdul Hamid

Chairman (Non-Independent member)

Tan Sri Dato' Dr. Wan Mohd. Zahid bin Mohd. Noordin

(Independent member)

Tan Sri Dato' Md. Desa bin Pachi (Independent member) • Dato‘ Idris bin Kechot

(Non-Independent member) SHARIAH COMMITTEE MEMBERS

Dato’ Dr. Abdul Halim bin Ismail Chairman (Independent member)

Datuk Dr. Syed Othman bin Syed Hussin Alhabshi (Independent member)

Prof. Dato’ Dr. Abdul Monir bin Yaacob (Independent member)

Prof. Dato’ Dr. Mahmood Zuhdi bin Hj Ab Majid (Independent member)

AUDIT COMMITTEE OF PNB • Tan Sri Dato' Dr. Wan Mohd. Zahid bin

Mohd. Noordin Chairman (Independent member)

Tan Sri Dato' Md Desa bin Pachi (Independent member)

Tan Sri Datuk Amar Bujang bin Mohammed Bujang Mohammed Nor

(Independent member)


COMPLIANCE COMMITTEE OF PNB

Tan Sri Dato' Dr. Wan Mohd. Zahid bin Mohd. Noordin Chairman (Independent member)

Tan Sri Dato' Sri Hamad Kama Piah bin Che Othman (Non-Independent member)

Tan Sri Dato' Md. Desa bin Pachi (Independent member)

Encik Paisol bin Ahmad (Non-Independent member) RISK MANAGEMENT COMMITTEE OF PNB

Tan Sri Datuk Amar Bujang bin Mohammed Bujang Mohammed Nor Chairman (Independent member)

Tan Sri Asmat bin Kamaluddin (Independent member)

Tan Sri Dato' Md. Desa bin Pachi (Independent member)

Dato’ Seri Ainum binti Mohamed Saaid (Independent member) COMPANY SECRETARY Puan Adibah Khairiah binti Ismail @ Daud (MIA 13755) 4th Floor Balai PNB 201-A Jalan Tun Razak 50400 Kuala Lumpur EXTERNAL INVESTMENT MANAGER Permodalan Nasional Berhad (38218-X) 4th Floor, Balai PNB 201-A, Jalan Tun Razak 50400 Kuala Lumpur Telephone : (603)-2050 5100 Website : www.pnb.com.my

TRUSTEE AmanahRaya Trustees Berhad (766894-T) Registered Office Address: Tingkat 11 Wisma AmanahRaya No. 2 Jalan Ampang, 50508 Kuala Lumpur Telephone : (603) 2055 7388 Business Office Address Tingkat 2 Wisma TAS No. 21 Jalan Melaka, 50100 Kuala Lumpur Telephone : (603)2036 5000 Facsimile : (603)2072 0322 Website : www.amanahraya.com.my

AUDITORS Messrs. Ernst & Young Chartered Accountants Level 23A Menara Milenium, Jalan Damanlela Pusat Bandar Damansara, 50490 Kuala Lumpur

SOLICITORS Messrs. Zainal Abidin & Co. Suite 1803 – 1806, 18th Floor Plaza Permata Jalan Kampar Off Jalan Tun Razak 50400 Kuala Lumpur

TAX ADVISOR Ernst & Young Tax Consultants Sdn Bhd Level 23A Menara Milenium Jalan Damanlela, Pusat Bandar Damansara 50490 Kuala Lumpur PRINCIPAL BANKER Maybank Islamic Berhad (787435-M) Level 10, Tower A, Dataran Maybank 1, Jalan Ma’arof 59000 Kuala Lumpur Telephone : (603)-2297 2001 Website : www.maybankislamic.com.my FEDERATION OF INVESTMENT MANAGERS MALAYSIA (FiMM) 19-07-3 7th Floor PNB Damansara, 19 Lorong Dungun Damansara Heights 50490 Kuala Lumpur Telephone: (603)2093 2600 Facsimile : (603)2093 2700 Website : www.fimm.com.my

mailto:website

http://www.fimm.com.my/


1 Summary of Key Features of the Fund

This section is only a summary of the salient information about the Fund. Investors should read

and understand the whole Prospectus before making investment decisions.

1.1 General Information on AMBDN

Further

details on

page :

Fund Category / Type Money Market (Shariah)/ Income

Investment Objective of

the Fund

The Fund aims to provide investors with high-level

liquidity and regular income stream to meet cash flow

requirements based on Shariah principles while

maintaining capital preservation*.

Note : Distribution of income, if any, will be automatically re-

invested into the Unit Holder’s account. Refer to Section 5.8.3

on page 44 for further details.

21 , 44

Policies and Principal

Investment Strategy

The Fund will invest at least 90% of the Fund’s NAV in

Shariah-compliant deposits, Islamic money market

instruments and Shariah-compliant debentures with

maturity of not more than 365 days and up to 10% of the

Fund’s NAV may be invested in Shariah-compliant

debentures which have a remaining maturity period of

more than 365 days but less than 732 days. The

securities invested in would have a minimum local credit

rating of at least BBB (long-term rating) or P2 (short-term

rating) by RAM or equivalent rating agencies.

22

Asset Allocation

Minimum 90% in short term Shariah-compliant deposits,

Islamic money market instruments and Shariah-

compliant debentures with maturity of not more than

365 days.

Up to 10% in short term Shariah-compliant debentures

exceeding 365 days but no longer than 732 days.

21

* Capital preservation does not signify that the capital/principal invested is guaranteed/protected by any party.


Benchmark Bank Islam Mudharabah Overnight Rate.

Note: Investors are advised that the actual portfolio of the Fund at any given time may consist of a mix of Shariah-compliants deposits, Islamic money market instruments and Shariah-compliant debentures of varying tenure and credit rating, as allowed by the Prospectus. Investors are to note that the risk profile of the Fund’s portfolio may be higher than the risk profile of the benchmark. Therefore, the Fund’s return can be potentially higher than the benchmark commensurate with the risk profile of the underlying assets of the Fund.

21

Principal Risks of Investing in the Fund

The principal risks of investing in the Fund includes interest rate risk, counterparty risk, and credit issuer/default risk.

18

External Investment Manager

PNB 55

Trustee ART 58

Investor’s Profile

The Fund is suitable for investors with the following profile: -

• Seeking low risk investments that are in accordance

with Shariah Principles.

• Seeking a Fund with regular income with potential yield

to return better than Bank Islam Mudharabah

Overnight Rate.

• Preferring short term investment horizon and wish to

reduce exposure in higher risk investments.

• Ease of entry and exit.

21

Distribution Policy

Monthly, depending on the level of income (if any) the Fund generates.

44

Launch Date

6 July 2011

12

Financial Year End 30 June 12

Maximum Approved Fund Size

400 million Units . 12

IOP

21 days commencing from the date of this Prospectus. 12

Initial Offer Price

RM0.50 per Unit 12


1.2 Fees and Charges

This table describes the charges that you may directly incur when you purchase or repurchase Units

of the Fund. All these direct charges are negotiable.

Direct Charges Amount

(i) Sales Charge Nil

(ii) Repurchase/Redemption

Charge Nil

(iii) Transfer Charge RM25 per transfer transaction

(iv) Switching Charge Switch into AMBDN – Nil.

Switch out from AMBDN into the existing AMB Family

of Funds - Please refer to the table below :

AMBDN to Equity Funds

AMBDN to Balanced Funds

AMBDN to Bond Funds

Up to 5% of amount switched



The switching facility into AMBDN is not presently available for Unit Holders who have invested via the EPF-MIS.

Refer to section 4.1.3 page 31 for further information

on switching transactions.

(v) Other Administrative Charges The Manager shall also be entitled to require a Unit

Holder to pay a charge not exceeding RM50.00 only in

respect of :

a) any documents supplied to the Unit Holder at the

Unit Holder’s request ;

b) any act of an administrative nature carried out for

the Unit Holder at the Unit Holder’s request.

which by the Deed or law is not required to be

supplied or carried out free of charge by the Manager.

You shall also be required to reimburse the Manager

and/or the Trustee in respect of any disbursements

such as bank charges incurred by the Manager and/or

the Trustee on your behalf.


This table describes the fees that you may indirectly incur when you invest in the Fund.

Indirect Fees %

(i) Annual Management Fee Up to 0.50% per annum of the NAV of the Fund calculated and accrued on a daily basis. The NAV is a gross NAV, before deducting management fee and trustee fee for the day.

(ii) Annual Trustee Fee Up to 0.08% per annum of the NAV of the Fund, calculated and accrued on a daily basis, subject to a minimum fee of RM18,000 per annum. The NAV is a gross NAV, before deducting management fee and trustee fee for the day.

(iii)

Other Annual Operating Expenses

The auditor’s fees, tax agents’ fee and other relevant professional fees; the costs of printing & distribution of annual and interim reports, tax vouchers and warrants; cost of modification of the Deed other than those for the benefits of the Manager and/or Trustee; and other notices to Unit Holders as well as expenses that are directly related and necessary for the administration of the Fund as set out in the Deed.

These costs have been factored into the quoted NAV per Unit as they are related and necessary to the business of the Fund.

Please refer to Section 4 for further information on fees and charges.

There are fees and charges involved and investors are advised to consider them before investing in the Fund. Investment in the Fund is not the same as placing funds in a deposit with financial institutions. There are risks involved and investors should rely on their own evaluation to assess the merits and risks when investing in the Fund.


1.3 Information on Transactions

Minimum initial

investment

Application for Units at the point of issue must be for a minimum of :

Individual – RM5,000

Corporate – RM50,000

Minimum additional

investment

Application for additional Units must be for a minimum of :

Individual – RM1,000

Corporate – RM10,000

Purchase of Units

The investment amount payable by the Unit Holders for the

purchase of a Unit is calculated at NAV per Unit. The NAV per Unit is

computed on Forward Pricing basis and published daily in major

newspapers. No sales charge will be imposed on the Unit Holders.

Refer to section 4.1 on page 30 respectively for more details.

Repurchase of Units

The repurchase amount payable to the Unit Holders for the

repurchase of a Unit is calculated at NAV per Unit. The NAV per Unit

is computed on Forward Pricing basis and published daily in major

newspapers. No repurchase charge will be imposed on the Unit

Holders. Refer to section 5.3.2 on page 39 for more details.

No repurchase is allowed during IOP. The Manager has taken necessary procedures to ensure accuracy of

information of pricing to be published in the news papers. However,

the Manager shall not be held liable for any error or omission in the

pricing information published in the newspapers. Refer to section

15.1 on page 81 for more details

Cooling-off Period Within six Business Days commencing from the date of purchase, i.e.

the date on which the Manager receives the application form and

the investment amount.

Cooling-off Right The Cooling-off Right is only given to a qualified Unit Holder who is

investing in AMB’s Family of Funds for the first time. Refer to section

5.5 on page 42 for more details.

Repurchase Period For repurchase applications received before 10.30 a.m., repurchase

monies will be paid the following business day (T+1). In respect of

any repurchase applications received after 10.30 a.m., the

repurchase monies will be paid after two business days (T+2).

In the event of any technical difficulties beyond the Manager’s control or should the repurchase request result in the sale of assets

Investment in the Fund is not the same as placing funds in a deposit with financial institutions. There are risks involved and investors should rely on their own evaluation to assess the merits and risks when investing in the Fund.


which cannot be liquidated at an appropriate price or on adequate terms and is as such not in the interest of the existing unit holders, repurchase monies may be paid at any time not later than 10 days after receipt by the Manager of the request to repurchase or such other period as may be permitted by the relevant authorities from time to time.

Frequency and Minimum Units of Repurchase

There is no minimum Units of repurchase imposed on a Unit Holder. However, for partial repurchase, the minimum balance of Units remaining in the account must always be 1,000 Units for Individuals and 5,000 Units for Corporate Institutions. There is no limitation on the frequency of requests for repurchase.

Minimum Holdings

to Maintain

Accounts

The minimum balance of Units remaining in the account must

always be 1,000 Units for Individuals and 5,000 Units for Corporate

Institutions.

The Manager is allowed to close the Unit Holder’s account, at the

Manager’s discretion, should the balance in Unit Holder’s account

fall below the minimum balance requirement.

Transfer Of Units

A Unit Holder may fully or partially transfer his Units in the Fund to another Unit Holder of the same, subject to an administrative fee of RM25 for each transfer. Refer to section 5.3.3 on page 40 for more details.

Switching of Units The switching facility into AMBDN is not presently available for Unit Holders who have invested via the EPF-MIS. Distribution Units of conventional funds cannot be switched into AMBDN. However the principal amount of conventional funds is allowed to be switched into AMBDN. Switching from a Shariah-based fund to a conventional fund is discouraged, especially for Muslim Unit Holders.

Distribution Mode

Any distribution income declared will be automatically re-invested

as additional units into the Unit Holder’s account. Unit Holders can

withdraw this distribution income by submitting a repurchase

request. Refer to page 44 for details on distribution payment.

Note: The Manager will ensure that the published prices are accurate. However, the Manager shall not be held liable for any error in prices published in the press. Investors may contact AMB or any Distribution Branch to further confirm the Unit prices.


1.4 Other Information

Deed

Unit Holders may refer to the Deed of the Fund dated 26 April 2011 for more specific information

on the Fund, which is available at the principal office of the Manager.

Condition for the Fund

The Manager has the option to request the Trustee to terminate the Fund and to wind-up the Fund

if at the end of the IOP, the capital raised shall be less than RM5 million, being the Fund’s viable

size, and it is deemed uneconomical to proceed with the Fund. In such circumstances, the Manager

shall reserve the right to return the amount invested which is at RM0.50 per Unit to the Unit

Holders.

There are fees and charges involved and investors are advised to consider the fees and charges before investing in the Fund. Unit prices and distribution payable may go down as well as up. For information concerning certain risk factors which should be considered by prospective investors, see “Risk Factors” commencing on page 18. You are advised to read and understand the contents of this Prospectus and if necessary, consult your professional advisor before making an investment decision.


2 Risk Factors

2.1 Risks of Investing in Unit Trusts

All investments carry some form of risk. Prior to investing one should consider the elements of risks

associated to the investments as the values of the investment could fluctuate due to these risks.

Prospective investors should consider the following risk factors in addition to the other information

stated in the Prospectus:

General Risks

Returns Not Guaranteed As a result of market risks, the Manager is unable to guarantee the distribution payout to Unit

Holders or the investment returns of the Fund.

Liquidity Risk

Liquidity risk relates to the Fund’s ability to quickly and easily trade, at a reasonable price, in and

out of positions. Should the Fund comprise a security that has become temporarily or permanently

illiquid or difficult to sell, the EIM may need to sell the security at a discount to its fair value, which

eventually affects the Fund’s value.

Compliance Risk

This risk arises from the non-compliance with the deed, legislation, internal policies, all applicable

rules and regulations governing a fund. Non-adherence may affect the value of the investment.

Inflation Risk

Inflation rate risk is the risk of potential loss in the purchasing power of your investment due to a

general increase in consumer prices. Inflation is thus one of the major risks to investors over a

long-term period and results in uncertainty over the future value of investments.

Management Risk

Performance of the fund depends on, amongst others, the experience, expertise, knowledge and

investment techniques of the fund manager. Inadequate management of the fund can cause

considerable losses to the fund, which in turn may affect the capital invested.

Force Majeure Risk

The fund may also be exposed to force majeure risks. These risks relates to events which are not

within the control of manager. This includes terrorist attacks, political instability, natural disasters

and spread of disease where risks are generally unforeseen and may have direct impact on the

business.


Specific Risks Associated with AMBDN

While attempts are being made to reduce risks encountered by the portfolio, investors should be

advised that the following risks are inherent in such investments of the Fund:

Interest Rate Risk

Interest rate risk is a general economic indicator that will impact on the management of the Fund

regardless of whether it is a Shariah Fund or otherwise. It does not in any way suggest that the Fund

will invest in debt securities which are not Shariah approved. All the investments for Shariah Fund

accord with the Shariah Principles.

Prices of short-term debt instruments move inversely with interest rates and the degree of price

sensitivity to interest rates is a function of debt securities and coupon maturity as well as the level

of interest rates. Even though the Fund does not invest in interest bearing instruments, the interest

rate referred herein is to the general interest rate of the country which may affect the value of the

investment of the Fund. However, given the short term nature of the investments, the Fund is

exposed to minimal interest rate risk.

In order to mitigate interest rate exposure of the Fund, the EIM will manage the duration of the

portfolio via shorter or longer tenured assets depending on the view of the future interest rate

trend of the EIM, which is based on its continuous fundamental research and analysis.

Counterparty Risk

When a Fund conducts over-the-counter (OTC) transactions, it may be exposed to risks relating to

the credit standing of its counterparties and their ability to fulfill the conditions of the contracts it

enters into with them. Hence, it is generally not applicable to transactions performed through

exchanges. This risk is mitigated by performing fundamental credit research and analysis to

determine the creditworthiness of the counterparty, and imposing a credit limit as a precautionary

step to limit any loss that may arise directly or indirectly as a result of a defaulted transaction.

Credit/Default Risk

Credit risk refers to the possibility that the issuer of a security may not be able to make interest

payments or repay the principal in a timely manner. This will translate to losses that will reduce the

value of the Fund. Credit risk is mitigated by performing continuous fundamental credit research

and analysis to ascertain the creditworthiness of its issuer. In addition, the EIM imposes a

minimum rating requirement as rated by either local and/or foreign rating agencies and manages

the duration of the investment in accordance with the objective of the Fund. For this Fund, the

Shariah-compliant debentures must satisfy a minimum rating requirement of at least BBB (long-

term rating) or P2 (short-term rating) by RAM or equivalent rating agencies.

Investors are reminded that the above list of risks may not be exhaustive and if necessary, they should consult their adviser(s), e.g. their bankers, lawyers, stockbrokers or independent financial advisers for a better understanding of the risks.


Control of Risk

The structure of the Fund is such that it is confined to instruments of short duration to maturity in

order to minimise the impact of fluctuations in interest rate on the performance of the Fund over

the short term while the credit risks it may face are mitigated by strict limits on concentration of

investments i.e. diversification and due diligence in the credit assessments by ensuring high credit

ratings as mentioned earlier.

The EIM will seek to reduce all these risks associated with the Fund by virtue of its experience, the

analytical process and by structuring a broadly diversified investment pool.

Please refer to Chapter 3 : Detailed Information on the Fund for information on Fund specific risks

and risk management.

Investors should note that investment in the Fund is not the same as placing funds in a deposit with a financial institution. There are risks involved and investors should rely on their own evaluation to assess the merits and risks when investing in the Fund.


3 Detailed Information on the Fund

AMBDN

3.1 Fund’s Profile

Fund Category Money Market (Shariah)

Fund Type Income

3.2 Investment Objective of the Fund

The Fund aims to provide investors with high-level liquidity and regular income stream to meet cash flow requirements based on Shariah principles while maintaining capital preservation*. Any material change to the investment objective of the Fund would require Unit Holders’ approval.

3.3 Maximum Approved Fund Size

The maximum approved Fund size for AMBDN is 400 million Units. In the event the Fund is fully subscribed within 21 days of IOP, we may increase the maximum approved fund size subject to the approval of the relevant authorities.

3.4 Investors’ Profile

The Fund is suitable for investors with the following profile: • Seeking low risk investments that are in accordance with Shariah Principles. • Seeking a Fund with regular income with potential yield to return better than Bank Islam

Mudharabah Overnight Rate. • Preferring short term investment horizon and wish to reduce exposure in higher risk investments. • Seeking investment with ease of entry and exit.

3.5 Asset Allocation

Minimum 90% in short term Shariah-compliant deposits, Islamic money market instruments and Shariah-compliant debentures with maturity of not more than 365 days.

Up to 10% in short term Shariah-compliant debentures exceeding 365 days but no longer than 732 days.



3.6 Benchmark

The performance of AMBDN will be benchmarked against the Bank Islam Mudharabah Overnight Rate, which can be obtained from the Bank Islam website www.bankislam.com.my or from Bloomberg (indicative rate).

Note: Investors are advised that the actual portfolio of the Fund at any given time may consist of a mix of Shariah-compliants deposits, Islamic money market instruments and Shariah-compliant debentures of varying tenure and credit rating, as allowed by the Prospectus. Investors are to note that the risk profile of the Fund’s portfolio may be higher than the risk profile of the benchmark. Therefore, the Fund’s return can be potentially higher than the benchmark commensurate with the risk profile of the underlying assets of the Fund.

3.7 Specific Benefits of Investing in AMBDN

Strict Adherence to the Shariah Principles AMBDN will adhere to the Shariah Principles. The Shariah Committee Members of the Fund comprise Islamic scholars who will monitor the investment activities of the Fund.

Liquidity AMBDN invests in highly liquid instruments in order to provide investors the facility to easily shift their funds and take advantage of opportunities presented by market movements.

Investment Through Diversification AMBDN manages and aims to minimise your risks by investing in a diversified range of Shariah compliant short term money market instruments.

Affordability Individual investors can invest just RM5,000 as a minimum initial investment and subsequent investments can be made at a minimum of RM1,000. For corporate investors, a minimum initial investment of RM50,000 is required and subsequent investments can be made at a minimum of RM10,000.

Accessibility Investors can easily access at AMB or any Distribution Branch to perform any enquiry or transaction. 3.8 Investment Policy/Approach

The Fund will be actively managed and its investment policy is to invest in liquid and low risk short term investments with a high degree of capital preservation*. As such, it intends to provide liquidity to meet the short-term cash flow requirements of its Unit Holders while providing regular income. In structuring the portfolio of the Fund, there will be no minimum limit for Shariah-based liquid assets as the Fund is highly liquid.

The investment policy above applies to the Fund and may be varied by the Investment Committee from time to time with the knowledge of the Trustee. Depending on the prevailing circumstances, the Fund will adopt a suitable level of active and frequent trading for the purpose of meeting the Fund’s objective.



3.9 Investment Strategy / Investment Mechanism

The Fund will invest at least 90% of the Fund’s NAV in quality Shariah-compliant deposits, Islamic money market instruments and Shariah-compliant debentures with maturity of not more than 365 days and up to 10% of the Fund’s NAV may be invested in Shariah-compliant debentures which have a remaining maturity period of more than 365 days but less than 732 days. The securities invested in would have a minimum local credit rating of at least BBB (long-term rating) or P2 (short-term rating) by RAM or equivalent rating agencies. The strategy for investment in Islamic money market instruments would be driven by the interest rate outlook for the market over the short and medium term horizon. This will enable the EIM to decide on the maturity structure for the Fund. As well, the EIM will constantly seek potential credit upgrade issues and avoid potential downgrade issues to maximise returns to Unit Holders.

The Fund is essentially managed to prioritise the short term liquidity requirements of Unit Holders, while endeavouring to provide regular income. The EIM will adopt a prudent strategy in forming a portfolio of Islamic money market instruments which is in accordance with the Fund’s investment objective and the EIM’s assessment of investment prospects in line with the underlying interest rate and economic outlook. The EIM will adopt the following forms of risk management strategies to mitigate the risks inherent in the Fund:

Diversification across asset classes within the Fund’s permitted investments;

Determining optimal asset allocation;

Adhering to the Fund's investment objectives and investment restrictions and limits;

Imposing limits on exposure to single financial institutions / issuers;

Duration management of the portfolio of Shariah-compliant debentures;

Liquidity management ;

Reviewing the performance of the Fund regularly against the performance of the benchmark; and

Reporting investment matters to the Investment Committee of the Fund. The investment strategy adheres to the SC Guidelines pertaining to investments for a money market fund. As such, any changes to these Guidelines would be tantamount to a change in this investment strategy. 3.10 Investment Process of the Fund

The investment process in the management of a unit trust portfolio involves the setting up of investment objective, establishing an investment policy, selecting an investment strategy, asset allocation, Shariah-compliant deposits, Islamic money market instruments and Shariah-compliant debentures; and measuring and evaluating performance.


3.10.1 Committee Responsibilities

(i) Shariah Committee Responsibilities Function

Shariah Screening Process

Investment Committee

The External Investment Manager

Manager

Designated Portfolio Manager

- Ensure that the investment policy and strategy of the Fund is adhered to. - Execute investments transactions as recommended by the designated Portfolio Manager.

- Review guidelines for asset allocation and portfolio strategy;

- Review market outlook, set asset allocation strategy and portfolio construction.

- Review investment policies and investment portfolio.

- Ensure objectives and investment guidelines are met.

(ii) Investment Committee Responsibilities

Shariah Committee

- Advise and interpret issues of Shariah nature.

- Set investment guidelines in compliance with Shariah Principles.

- Monitor the Fund’s activity to ensure adherence to the investment guidelines.

- To formally meet at least once every 3 months to review the Fund’s compliance towards the Shariah Principles.

- Responsible for scrutinising the compliance and transactions report to ensure investments are in line with Shariah Principles.

- To prepare a report to be included in the Fund’s interim and annual reports.

The investment portfolio of the Fund comprise securities which have been permitted by the SC and classified as Shariah-compliant by the Shariah Advisory Council (SAC) of the SC or have been determined as being Shariah-compliant by the Shariah Committee of the Fund.


3.10.2 Investment Process The following investment strategy & process will be adopted: -

Monetary Policy and key economic indicators Short and long term interest rates outlook

Tenors and liquidity of the instruments Yields offered

High quality credit ratings Tenors and yields offered Industries with stable earnings

Cashflow requirements Collection/redemption pattern

Cash flows to meet profit & principal repayments Financial and yield analysis

Within the permissible exposure limits With authorized panel of financial institutions

Liquidity and size of issue Suitability for time horizon of Fund versus interest

rate cycle Within the Guidelines parameters

Constant portfolio monitoring

Macro Economic Analysis

DETERMINE INTEREST RATE TRENDS

IDENTIFY MONEY MARKET INSTRUMENTS

DETERMINE MATURITY STRUCTURES

MONEY MARKET EXECUTION

DEPOSIT & MONEY MARKET DEBENTURES

IDENTIFY DEBENTURES ISSUANCE

CREDIT ANALYSIS

DEBENTURES EXECUTION

FUND MANAGEMENT

The investment portfolio of the Fund comprise securities which have been permitted by the SC and classified as Shariah-compliant by the Shariah Advisory Council (SAC) of the SC or have been determined as being Shariah-compliant by the Shariah Committee of the Fund.


3.10.3 Cleansing/Purification Process

Cleansing Process

This refers to a Shariah non-compliant investment inadvertently made by the Manager. The said investment will be disposed/withdrawn with immediate effect. In the event the investment resulted in gain, the gain is to be channeled to baitulmal or any other charitable bodies as advised by the Shariah Committee. If the disposal of the investment resulted in loss to AMBDN, the loss is to be borne by the Manager.

Purification Process

This refers to the purification by way of payment of zakat by Muslims. AMBDN does NOT pay zakat on behalf of Muslim individuals and Islamic legal entities who are investors of these Funds. Thus, Unit Holders are advised to pay zakat on their own.

3.11 Steps to be Taken in the event of a Rating Downgrade The EIM reserves the right to deal with the invested instruments in the best interest of the Unit Holders. Should the instrument be downgraded below the minimum credit rating of BBB (long-term rating) or P2 (short-term rating), the EIM would divest the instrument whenever possible, within the time frame as may be stipulated by the Investment Committee and Shariah Committee. The EIM will also take into consideration all relevant factors that affect fair value of the investment via an internal credit assessment process before deciding on the manner and time frame of the sale. 3.12 Permitted Investments for AMBDN The Fund may, unless expressly prohibited by the Deed, invest in securities which constitute “permitted investments” within the definition under the Guidelines. These include Shariah-compliant debentures, deposits and Islamic money market instruments. The securities may take any of the following forms:

(i) Cash at hand, GIA, Islamic money market instruments and Shariah-compliant deposits with licensed financial institution;

(ii) Unlisted Sukuk or Sukuk traded on Eligible Markets;

(iii)

GII, Islamic Acceptance Bills, Islamic Negotiable Instruments of Deposits and other Shariah-compliant obligations issued or guaranteed by the Malaysian Government, Bank Negara Malaysia, State Governments and Government-related agencies such as Cagamas and Khazanah;

(iv) All types of Shariah-compliant collective investment schemes (listed or unlisted);

(v)

Any other forms of investments that are in line with the Fund’s objective and as may be agreed upon by the Manager, the Investment Committee, the Shariah Advisory Council of the SC and/or Shariah Committee members that are permissible with the Shariah Principles.

Note: The investments of the Fund must comply with the rulings of the Shariah Advisory Council of the SC and the Shariah Committee of the Fund.


3.13 Investment Restrictions AMBDN is also subject to the following restrictions stipulated by the Deed and/or the Guidelines: Investment Exposure Limits

The value of the Fund’s investment in permitted investments must not be less than 90% of the Fund’s NAV;

The value of the Fund’s investment in permitted investments which have a remaining maturity period of not more than 365 days must not be less than 90% of the Fund’s NAV; and

The value of the Fund’s investment in permitted investments which have a remaining maturity period of more than 365 days but fewer than 732 days must not exceed 10% of the Fund’s NAV.

Investment Spread Limits

The value of the Fund’s investments in Shariah-compliant debentures and Islamic money market instruments issued by any single issuer must not exceed 20% of the Fund’s NAV. However, the single issuer limit for Shariah-compliant debentures may be increased to 30% if the Shariah-compliant debentures are rated by any domestic or global rating agency to be of the best quality and offer highest safety for timely payment of profit and principal.

The value of the Fund’s investments in Shariah-compliant debentures and Islamic money market instruments issued by any group of companies must not exceed 30% of the Fund’s NAV; and

The value of the Fund’s placement in Shariah-based deposits with any single financial institution must not exceed 20% of the Fund’s NAV.

Investment Concentration Limits

The Fund’s investments in Shariah-compliant debentures must not exceed 20% of the Shariah-compliant debentures issued by any single issuer;

The Fund’s investments in Islamic money market instruments must not exceed 20% of the instruments issued by any single issuer; and

The Fund’s investments in Shariah-compliant collective investment schemes must not exceed 25% of the units/shares in any Shariah-compliant collective investment scheme.

3.14 Exceptions and Exclusions Applicable to the Fund The investments restrictions and limits must be complied with at all times based on the most up-to-date value of the Fund’s property except for the following conditions:

The limits and restrictions above are not applicable to debentures and securities issued by, or backed by, the Malaysian government or Bank Negara Malaysia.

The holding of an investment and/or other instrument by the Fund (whether by way of repurchase, exchange, conversion, rights, bonus, capital reorganisation or other forms of


entitlement) may exclude any entitlement accruing on the investment and/or instrument held. Notwithstanding, the entitlement should not be exercised if the exercise results in the breach of any limit or restriction. The right of convertability, may be exercised even if it results in a breach of any limit or restriction, provided there are justifiable reasons and prior approval of the Trustee has been obtained. Nonetheless, the EIM should, within a time frame of not more than one month from the date of the breach, take all necessary action to rectify the breach.

A 5% allowance in excess of any limit or restriction may be permitted where the limit or restriction 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). The Manager should not make any further acquisitions where the relevant limit is breached, and the Manager should within a reasonable period of not more than 3 months from the date of the breach take all necessary steps and actions to rectify the breach.

3.15 Bases of Valuation of Investments The Fund shall adopt the following bases of valuation of investments in accordance with the Guidelines. The valuation bases for the authorized investments of the Fund are as below: (a) Unlisted Sukuk denominated in Ringgit Malaysia are stated at the indicative market value

quoted by a bond pricing agency (BPA) registered with the SC. (b) 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 or the EIM may use the “market price”, provided that the Manager or the EIM :

(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”.

This “market price” would be the fair value by reference to the average indicative yield quoted by three independent and reputable institutions.

(c) In the absence of BPA pricing, unlisted Sukuk will also use the fair value by reference to the

average indicative yield quoted by three independent and reputable institutions. (d) Islamic money market instruments such as bank bills and deposits placed with financial

institutions are valued each day by reference to the nominal value and the accrued profit thereon for the relevant period.

(e) Units in other Shariah-based collective investment schemes are valued at the last published

NAV per Unit or if not available, based on methods deemed to be fair and reasonable as agreed upon by the Manager and Trustee.

The EIM calculates the value of investment of the Fund at the end of each Business Day.


3.16 Policy on Gearing and Liquid Assets The Fund is not permitted to borrow cash or other assets (including the borrowing of Shariah-compliant securities within the meaning of the Guidelines on Securities Borrowing and Lending) in connection with its activities. However, the Fund may borrow cash for the purpose of meeting repurchase requests for Units and short-term bridging requirements, and such borrowings are subjected to the following :

The Fund’s cash borrowing is only on a temporary basis and that borrowings are not persistent;

The borrowing period should not exceed a month;

The aggregate borrowings of the Fund should not exceed 10% of the Fund’s NAV at the time of the borrowing is incurred;

The Fund may only borrow from licensed institutions; and

The instruments for such activity must comply with the Shariah requirements. Except for Shariah-compliant securities lending as provided under the Guidelines, none of the cash or investments of the Fund may be lent. Further, the Fund may not assume, guarantee, endorse or otherwise become directly or contingently liable for or in connection with any obligation or indebtedness of any person.

Investment in the Fund is not the same as placing funds in a deposit with financial institutions. There are risks involved and investors should rely on their own evaluation to assess the merits and risks when investing in the Fund.


4 Fees, Charges and Expenses

There are fees and charges involved and investors are advised to consider them before investing in the Fund. 4.1 Charges All direct charges are negotiable. 4.1.1 Sales Charge Unit Holders do not have to pay any Sales Charge when investing in this Fund. Below is an illustration on how the sales charge is calculated: 1. Investment amount in AMBDN RM10,000 2. NAV per Unit RM0.5000 3. Sales Charge 0% of NAV per Unit Units issued to Unit Holder = Investment Amount

NAV per Unit = RM10,000.00 RM0.5000 = 20,000 Units Sales Charge per Unit = NAV per Unit x Sales Charge (%) = RM0.5000 x 0% = RM0.0000 Total Sales Charge = 20,000 Units x RM0.0000 = RM0.00 Please note that the above example is for illustration purpose only. Total Sales Charge is rounded up to the nearest two decimal points. 4.1.2 Repurchase / Redemption Charge There will be no repurchase/redemption charge levied on the repurchase/redemption of Units for this Fund. Below is the illustration on the calculation of a repurchase/redemption charge:

1. Units repurchased 10,000 Units 2. Repurchase charge 0 % of NAV per Unit 3. NAV per Unit RM0.5000


Repurchase charge per Unit = NAV per Unit x repurchase charge (%) = RM0.5000 x 0 % = RM0.0000 Total Repurchase Charge = 10,000 units x RM0.0000 = RM0.00 Please note that the above example is for illustration purpose only. Total repurchase charge is rounded up to the nearest two decimal points. 4.1.3 Switching Charge

There is no switching charge imposed on monies switched into AMBDN from the AMB Family of Funds.

However, for switching out from AMBDN, the switching charges are as follows:

AMBDN to Equity

Funds

AMBDN to

Balanced Funds

AMBDN to Bond

Funds

Up to 5% of

amount switched

Up to 5% of

amount switched

Up to 1% of

amount switched

The switching facility into AMBDN is not presently available for Unit Holders who have invested via the EPF-MIS. Distribution Units of AMB’s conventional funds cannot be switched into AMBDN. However the principal amount of AMB’s conventional funds is allowed to be switched into AMBDN. Switching from AMBDN to AMB’s conventional fund is discouraged, especially for Muslim Unit Holders. 4.1.4 Transfer Charge

A Unit Holder may fully or partially transfer his Units in the Fund to another Unit Holder of the same subject to an administrative fee of RM25 for each transfer. Refer to section 5.3.3 on page 40 for more details.

4.1.5 Other Administrative Charges

In addition to the fees and charges allowed to be charged by the Manager by the Deed, the Manager shall also be entitled to require a Unit Holder to pay a charge not exceeding RM50.00 only in respect of:

a) any documents supplied to the Unit Holder at the Unit Holder’s request;

b) any act of an administrative nature carried out for the Unit Holder at the Unit Holder’s request;

which by the Deed or law is not required to be supplied or carried out free of charge by the Manager.


You shall also be required to reimburse the Manager and/or the Trustee in respect of any disbursements such as bank charges incurred by the Manager and/or the Trustee on your behalf. 4.2 Fees The following are the fees payable by the Fund indirectly incurred by Unit Holders when investing in the Fund, unless otherwise specified. 4.2.1 Management Fee The Manager is entitled to an annual management fee of 0.50% per annum of the NAV of the Fund. The annual Management fee is calculated and accrued on a daily basis before deducting the annual management fee and trustee fee for the day. The annual management fee shall be rounded to the nearest two decimal points. 4.2.2 Trustee Fee The Trustee is entitled to an annual fee of up to 0.08% per annum of the NAV of the Fund subject to a minimum of RM18,000 per annum. The Trustee fee is calculated and accrued on a daily basis before deducting the annual Management fee and Trustee fee for the day. The trustee fee shall be rounded to the nearest 2 decimal points. 4.3 Fund’s Expenses The Management fee and Trustee fee, the auditor’s fees and other relevant professional fees, the costs of distribution of annual reports, tax vouchers, distribution warrants, cost of modification of Deeds and other notices to Unit Holders as well as expenses that are directly related and necessary for the administration of the Fund, as set out in the Deed, shall be paid out of the Fund. These costs are already factored into any quoted Unit price. 4.4 Others 4.4.1 Policy On Brokerage Rebates And Soft Commissions It is the Manager’s policy to channel all rebates, if any, received from brokers/dealers to the Fund. However, the following goods and services received from brokers/dealers and other financial service providers (“soft commissions”) are retained by the Manager:

(i) research materials; (ii) data and quotation services; (iii) investment-related magazines, journals and other related trade publications; and (iv) computer applications software.

The policy of the Manager is to accept only soft commissions, which are relevant as stated above, and incidental to the investment and management of the Manager and which are of demonstrable benefit to the Unit Holders of the Fund. The Manager will ensure that the acceptance of the soft commissions does not affect the dealings by the provider of the commissions, which are to be executed on a “best execution” basis.


4.4.2 Portfolio Turnover Ratio (PTR) Portfolio turnover of the Fund is the ratio of the average sum of the acquisitions and disposals of the Fund for the year to the average value of the Fund for the year calculated on a daily basis, as follows:

[Total acquisitions of the Fund for the year + Total disposals of the Fund for the year] / 2 Average value of the Fund for the year calculated on a daily basis

4.4.3 Management Expense Ratio (MER) The Management Expense Ratio (MER) provides a measure by which investors can assess and compare the outgoing incurred by the Fund. These expenses are deducted from the income of the Fund before it is paid to you. MER of the Fund is the ratio of the sum of the fees and the recovered expenses of the Fund to the average value of the Fund calculated on a daily basis, as follows:

Fees of the Fund + recovered expenses of the Fund X 100

Average value of the Fund for the year calculated on a daily basis

Where: Fees = All ongoing fees deducted/deductible directly from the Fund in respect of the

period covered by the management expense ratio, expressed as a fixed amount, calculated on a daily basis. This would include the annual management fee, the annual trustee fee and any other fees deducted/deductible directly from the Fund;

= All expenses recovered from /charged to the Fund as a result of the expenses

incurred by the operation of the Fund, expressed as a fixed amount. This should not include expenses that would otherwise be incurred by an individual investor, for example brokerage, taxes and levies);

= The NAV of the Fund, including the net income value of the Fund, less

expenses on an accrued basis, in respect of the period covered by the management expense ratio, calculated on a daily basis.

There are fees and charges involved and investors are advised to consider them before investing in the Fund.

Average Value of The Fund

Recovered Expenses


5 Transaction Information

5.1 Valuation of Units The valuation of Units is based on the NAV of the Fund and is calculated at the end of each Business Day. According to the Single Pricing Policy, the purchase and repurchase price of Units would be at the NAV per Unit. Illustration of computation of the NAV per Unit at each valuation point is illustrated below: Total Assets RM132,550,000 Total Liabilities RM 3,614,000 NAV = Total Assets – Total Liabilities

= RM132,550,000 – RM3,614,000 = RM128,936,000

Units in Circulation = 255,600,000 Units NAV per unit = NAV______

UIC

= RM128,936,000 255,600,000

= RM0.50444444444 NAV per Unit, rounded to 4 decimal places = RM0.5044 Please note the above example is for illustration purpose only 5.2 Pricing of Units 5.2.1 Single Pricing Policy The Manager adopts the single pricing policy in calculating your investment. Single pricing equates to prices quoted and transacted on a single price (i.e. NAV per Unit). SC has implemented the Single Pricing Regime (“SPR”) which was effected on 1 July 2007 to replace the dual pricing model in order to provide greater clarity on the cost to be incurred by investors for the investment made in the unit trust schemes. The long established dual pricing method comprises of one price being quoted to purchasing investors and another price being quoted to selling investors.


Under the SPR, both the Repurchase Price and the Selling Price should be the NAV per Unit of the Fund as at the next valuation point following the receipt of an application to purchase or request for repurchase of Units of the Fund by the Manager. The SPR will provide greater transparency to the investors on the charges imposed by the Manager and each Distribution Branch. Illustration of computation for Purchasing of Units in AMBDN under the SPR Assuming: (i) Amount invested by Unit Holder : RM10,000 (ii) Initial offer price per Unit : RM0.5000 (iii) Sales charge : 0 % of NAV per Unit Units allotted = Invested Amount

NAV per Unit

= RM10,000 RM0.5000 = 20,000 Units Total sales charge incurred = Units alloted x Sales Charge = 20,000 Units x ( 0% x RM0.5000) = 20,000 Units x RM0.0000 = RM0 Total amount payable = Investment amount + total sales charge = RM10,000 + RM 0 = RM10,000 Please note the above example is for illustration purpose only. Repurchasing an Investment Repurchase of Units by Unit holders is transacted at the NAV per Unit of the Fund, . Illustration of computation for Proceeds of Repurchased of Units of AMBDN under the single pricing policy Assuming: (i) Units repurchased : 20,000 Units (ii) NAV per Unit : RM0.5000 (iii) Repurchase charge : 0 % of NAV per Unit


Total proceeds of Repurchased of Units by Unit Holder

(a) Repurchase proceeds = Units repurchased x NAV per Unit = 20,000 X RM0.5000 = RM10,000 (b) Total repurchase charge = Repurchase charge x NAV per Unit x Units repurchased = 0 % x RM0.5000 x 20,000 Units = RM0

(c) Net repurchase proceeds = Amount repurchased – Total Repurchase charge = RM10,000 – RM 0 = RM10,000 Please note the above example is for illustration purpose only. 5.2.2 Forward Pricing The price of Units is computed on a Forward Pricing basis. As such, Units of the Fund are repurchased at the NAV per Unit at the next valuation point after receipt of the repurchase request and acceptance by the Manager. Consequently, any changes in the underlying assets of the Fund will cause its Unit prices to vary. 5.3 Transactions Purchasing and Repurchasing of Units When you invest in the Fund you are issued with Units. These Units represent your holding in the Fund. The number of Units that you will receive is based on the initial offer price per Unit of the Fund during the IOP. After the IOP, this number of Units is based on the NAV per Unit of the Fund. For AMBDN, no sales charge is imposed during the purchasing of Units on top of the amount invested. Applications to purchase Units will be processed on the same Business Day if received by 2.30 p.m with cleared payment. The applicable purchase price would be based on the NAV per Unit at the end of the Business Day on which the application to purchase is received by the Manager. Any application received or deemed to have been received after this cut-off time would be considered

There are fees and charges involved and investors are advised to consider the fees and charges before investing in the Fund.


as being transacted on the next Business Day and would be subjected to the Manager’s pricing on the next Business Day. Applications to repurchase Units will be processed on the same Business Day if received by 10.30 a.m. The applicable repurchase price would be based on the NAV per Unit at the end of the Business Day on which the request to repurchase is received by the Manager. Any request received or deemed to have been received after this cut-off time would be considered as being transacted on the next Business Day and would be subjected to the Manager’s pricing on the next Business Day. There shall be no Repurchase of Units during the IOP. After the IOP, the Repurchase of Units is based on the NAV per Unit of the Fund. In the event of any technical difficulties beyond the Manager’s control or should the redemption request result in the sale of assets which cannot be liquidated at an appropriate price or on adequate terms and is as such not in the interest of the existing Unit Holders, redemption monies may be paid at any time not later than 10 days after receipt by the Manager of the request to repurchase or such other period as may be permitted by the relevant authorities from time to time. 5.3.1 How to Purchase Units of the Fund Making an investment in the Fund is simple. Just complete the application form accompanying this Prospectus and send it to AMB or any Distribution Branch, following the instructions in the application form, with the appropriate amounts for the Units to be purchased. The application form is available at the back of this Prospectus. An investor is recognised as a Unit Holder upon receipt of payment by the Manager together with the completed application form. The Manager will issue investment confirmation statements to the Unit Holders within 14 days from the receipt of application forms by the Manager. Below are the requirements of Purchasing of Units of the Fund. 5.3.1.1 Making an Initial Investment Individual investor (single or joint applicant)

Completed Application Form.

FiMM Pre-investment Form

Photocopy of identity card, birth certificate (if joint applicant is a minor) or passport (if applicant is a Malaysian resident or foreigner).

Mode of payments- Cash, Cheque/Bank Draft, Direct Debit, Telegraphic Transfer (TT), etc. Payment by Cheque/Bank Draft/TT must be made in favour of “Amanah Mutual Berhad”; and

All payments must be accompanied by the pay-in slip and completed application form. Corporate investor

Completed Application Form.

FiMM Pre-investment Form

A copy of the Company’s Memorandum & Articles of Association (M & A), Form 49, certificate of registration, board resolution approving the investment in the Fund, list of authorized signatories and their specimen signatures.


Mode of payments - Cheque/Bank Draft, Direct Debit, Telegraphic Transfer (TT), etc. Payment by Cheque/Bank Draft/TT must be made in favour of “Amanah Mutual Berhad”; and

All payments must be accompanied by the pay-in slip and completed application form. An investor is recognized as a registered Unit Holder by AMB upon receipt of payment (in AMB account) together with completed Application Form and other relevant supporting documents. The Manager will then issue a letter confirming the investment within 14 Days upon receipt of the aforesaid documents provided that the application monies have cleared. Payment for initial investment application direct with AMB 1. Via Cheque, bank draft and money order Payments can be made using cheque, bank draft, or money order made payable to: "Amanah Mutual Berhad". Applicants are to write their name and NRIC number or passport 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. Third party cheque payment must be accompanied with a properly signed letter from the Issuer of the cheque stating the he/she is aware that the cheque is used for investment in unit trust by the investor duly named. In the case of bank draft or money order, a copy of the application for the bank draft or money order as approved by the relevant bank/post office must be submitted with the bank draft or money order. 2. Via Telegraphic Transfer / Bank Transfer / Online Transfer Applicants may transfer the subscription proceeds directly into AMB's bank account via telegraphic transfer/bank transfer/online transfer. Please include applicant's name in the transaction description, where applicable, for reference. 5.3.1.2 Making an Additional Investment Individual investor (single or joint applicant)

Completed Additional Application Form.

Mode of payments - Cash, Cheque/Bank Draft, Direct Debit, Telegraphic Transfer (TT), etc. Payment by Cheque/Bank Draft/TT must be made in favour of “Amanah Mutual Berhad”; and

All payments must be accompanied by the pay-in slip and completed additional Application Form. Corporate investor

Completed Additional Application Form.

Board resolution approving the investment (if necessary).

Mode of payments - Cheque/Bank Draft, Direct Debit, Telegraphic Transfer (TT), etc. Payment by Cheque/Bank Draft/TT must be made in favour of “Amanah Mutual Berhad”; and

All payments must be accompanied by the pay-in slip and completed additional Application Form.


The additional investment is recognized by the Manager upon its receipt of payment together with the relevant supporting document. The Manager will then issue a letter confirming the investment within 14 Days upon receipt of the aforesaid documents provided that the application monies have cleared. Payment for additional investment application direct with AMB Payment for additional investment can be made by the same mode of payment as for initial investment. Applicants can either mail the application with complete documentation and payment to AMB or come personally to AMB. If we do not receive complete documents with the payment, we reserve the right to reject the application. If applicant deposits payment into AMB's bank account and does not notify or provide us with the complete documents, AMB reserves the right to reject the application and hold such amount until claimed. Investors are advised not to make payment in cash when purchasing units of a fund through any institutional agent. 5.3.2 How to Repurchase Units of the Fund Repurchase can also be made in part or entirety at any time during the tenure of the Fund after the IOP by completing the Repurchase form, which can be obtained at AMB or any Distribution Branch. Below are the requirements for Repurchasing of Units of the Fund: For individual (single or joint applicant)

Completed Repurchase Form. For corporate investors

Completed Repurchase Form.

Board resolution (if necessary). Partial repurchase of Units is permitted provided the applicable minimum holding is maintained at 1,000 units for individuals and 5,000 units for corporate clients. There is no restriction on frequency of repurchase and number of Units a Unit Holder can redeem subject to the minimum holdings above. The Manager may elect not to permit a partial repurchase if the effect thereof would be that the Unit Holder holds less than the minimum holding applicable.


Payment for repurchase of Units of direct Unit Holders of AMB Cheque The Unit Holders will receive withdrawal proceeds payment by cheque payable to the Unit Holder's or jointholders' names only. The cheques will be mailed to the address of the Unit Holders based on the application form or as may be subsequently notified in writing to the Manager. AMB may assist to bank in the cheque directly into a Unit Holder's bank account. The Unit Holder shall provide the bank account details in the application or repurchase forms. Any charges incurred such as charges for outstation cheque will be borne by the Unit Holders. Transfer to a bank account (a) Within the country

Unit Holders may give AMB an instruction in writing to transfer the repurchase proceeds to Unit Holders' nominated local bank account held in Unit Holders' own name. All bank charges for the transfer will be borne by the Unit Holders. The charge will be deducted from the repurchase amount before being paid to the Unit Holders relevant bank account. Unit Holders are required to provide AMB with the relevant bank account details in order for AMB to proceed with the transfer request. It is possible for delays in the banking system to occur which are beyond our control. If the funds cannot be transferred, AMB shall draw a cheque payable to the Unit Holders. (b) Overseas

Unit Holders may give AMB instruction in writing to transfer the repurchase proceeds to the Unit Holders' nominated bank account overseas held in Unit Holders' own name. All bank charges for the transfer will be borne by the Unit Holders. The charge will be deducted from the repurchase amount before being paid to the Unit Holders’ relevant bank account. Note : No repurchase proceeds will be paid in cash under any circumstances. 5.3.3 Transfer of Units Units in AMBDN are transferable. A Unit Holder may fully or partially transfer his Units in the Fund subject to the transferor and the transferee having the minimum holding in their respective accounts. Every transfer form must be accompanied by such evidence as the Manager may require of proof of title of the transferor and is subject to administration fee of RM25 per transfer. Below are the requirements of transfer of Units of the Fund: For individual investor (single or joint applicant)

Completed Transfer Form;

FiMM Pre-investment Form (provided that the transferee is a new investor); and

Photocopy of identity card or passport of transferee.


For corporate investor

A copy each of the transferor’s company’s resolution and certificate of incorporation (certified by a director or company secretary and list of authorized signatories and specimen signatures. All documents should be endorsed by Company Secretary); and

FiMM Pre-investment Form (provided that the transferee is a new investor).

A copy of the Company’s Memorandum & Articles of Association (M & A), Form 49, certificate of registration, board resolution approving the investment in the Fund, list of authorized signatories and their specimen signatures. (provided that the transferee is a new corporate investor).

A copy of the NRIC of the transferee (if individual).

The Manager will then issue a letter confirming the transaction within 14 Days upon receipt of the aforesaid documents. 5.3.4 Switching Facility We recognize that your investment needs may change over time. To meet your changing needs, the Manager gives you the flexibility to switch from one Fund to any of the Funds under the AMB Family of Funds that allows switching of Units. The fees for switching into or out of AMBDN are as follows :

Switching To Switching From

Equity Balanced Bond

Money Market

Equity RM25 per

transaction RM25 per

transaction RM25 per

transaction Nil

Balanced Up to 1% of

amount switched

RM25 per transaction


Nil

Bond Up to 5% of

amount switched



Nil

Money Market Up to 5% of

amount switched



Not Applicable

Unit Holders must at all times maintain at least the minimum holdings required for the Fund to stay invested in that Fund. The switching facility into AMBDN is not presently available for Unit Holders who have invested via the EPF-MIS. Distribution Units of AMB’s conventional funds cannot be switched into AMBDN. However the principal amount of AMB’s conventional funds is allowed to be switched into AMBDN. Switching from AMBDN to AMB’s conventional fund is discouraged, especially for Muslim Unit Holders.


How to switch? To switch into or out of the AMB Family of Funds you can simply complete a switching form and a FiMM Pre-investment Form (if necessary) at AMB or any Distribution Branch. Please refer to page 83 for more information on these Distribution Branches. A switch is processed as a withdrawal from one fund and an investment into another. If we receive a valid switching request by 2.30 p.m., AMB will process it using the NAV per Unit for that Business Day. Should the switching request be received after 2.30 p.m, it will be processed using the NAV per Unit for the next Business Day.

Investors are advised not to make payment in cash when Purchasing of Units of the Fund via any Distribution Branch.

5.4 Where to Purchase, Repurchase,Transfer and Switch Units can be purchased, repurchased, transferred and switched during normal banking/business hours at AMB or any Distribution Branches. Please refer to page 84 for more information on these Distribution Branches. 5.5 Cooling-Off Right A Cooling-Off Right refers to the right of the Unit Holder to obtain a refund of his investment in the Fund if he so requests within the Cooling-Off Period. A Cooling-Off Right is only given to an investor, other than below, who is investing in AMB Family of Funds for the first time: (a) a corporation or institution; (b) staff of the Manager; and (c) persons registered to deal in unit trusts of the Manager. The refund for every Unit held by the investor pursuant to the exercise of the Cooling-Off Right shall be the NAV per Unit on the day the Units were first purchased. Illustration of computation of Cooling-Off Proceeds By the way of illustration, if a Unit Holder invested RM10,000 in AMBDN on 2 May 2011, the computation will be as follows: (i) Investment Amount : RM10,000 (ii) Initial offer price per Unit : RM0.5000 (iii) Sales charge : Nil


Unit allotted = Investment Amount Initial offer price per Unit

= RM10,000 RM0.5000 = 20,000 Units Total sales charge incurred = Units Allotted x Sales Charge

= 20,000 Units x ( 0 % x RM0.5000) = 20,000 x RM 0 = RM0

Total amount payable = Investment amount + total sales charge

= RM10,000 + RM0 = RM10,000

On 4 May 2011 (within the Cooling-Off Period) the investor decides to exercise his Cooling-Off Right by submitting a request for a refund of his investment. The cooling off amount/proceeds due to you is computed based on the NAV per Unit paid by you. The total amount to be returned to the Unit Holder would be ; = Sales charge paid + (NAV x Units initially purchased) = RM 0 + (RM0.5000 x 20,000 Units) = RM10,000 Please note the above example is for illustrative purposes only. The request to exercise your Cooling-Off Right must be submitted either to the Manager or Distribution Branch within six Business Days commencing from the date of purchase. When a Cooling-Off Right is exercised, the money will be refunded to the applicant within 10 days of receipt of the notice or exercise of Cooling-Off Right by the Manager. We value the Fund’s investments and calculate the Unit prices for the Fund at the close of every Business Day. Unit prices are published in major newspapers nationwide and investors may call our AMB Client Services : 03-2034 0800 or visit our website at www.ambmutual.com.my. 5.6 Minimum Holdings to Maintain Account There is no restriction on the frequency of repurchase of Units. For partial repurchase, the minimum holdings of Units remaining in the account must always be 1,000 Units, for individual and 5,000 Units for corporate institutions. The Manager may elect to reject a request for repurchase if the effect thereof would be that the Unit Holder would hold less than the applicable minimum holdings.



5.7 Conditions for the Fund The Manager has the option to request the Trustee to terminate the Fund and to wind-up the Fund if at the end of the IOP, the capital raised shall be less than RM5 million, being the Fund’s viable size, and it is deemed uneconomical to proceed with the Fund. In such circumstances, the Manager shall reserve the right to return the amount invested which is at RM0.50 per Unit to the Unit Holders. 5.8 Understanding Income Distribution 5.8.1 Distribution Policy Distribution, if any, is declared at the end of every calendar month or for any specified period, as may be determined by the Manager subject to approval from the Trustee. The Fund will distribute part or all of its realized income to the Unit Holders at the discretion of the Manager. The distribution of the Fund will vary depending on the performance of the Fund and prevailing economic conditions. It is intended that distributions to Unit Holders, if any, will be based on the number of Units held by the Unit Holders as at the date that the distribution is declared. 5.8.2 What Comprises Income Distribution? Income distribution is made from realised capital gains (net of realised losses) and realised income. Capital gains are realised when investments are disposed off at a profit. Realised income is income from profit, accretion of discounts net of amortisation of premium on Shariah-compliant debentures and income earned from permitted investments. 5.8.3 Mode of Payment for the Income Distribution Any distribution income declared will be automatically re-invested into the Unit Holder’s account. Re-investment of Units is computed based on the NAV per Unit at the close of the first Business Day immediately following the distribution date. For re-investment of distribution Units, no sales charge will be imposed. Unit Holders can withdraw this distribution income by submitting a repurchase request and no repurchase charge will be imposed. Refer to page 39 for details on repurchase transaction. 5.9 Policy on Unclaimed Monies Any amount payable to Unit Holders remaining unclaimed for such period of time as prescribed by the Unclaimed Monies Act 1965 after the date for payment shall be paid by the Trustee to the consolidated trust account in accordance with the provisions of the Unclaimed Monies Act 1965.


5.10 Error in Pricing In the event of any incorrect pricing of Units of the Fund, the Manager shall take immediate remedial action where the incorrect pricing: (a) is equal or more than 0.5% of the NAV per Unit; and (b) results in a sum of RM10.00 or more to be reimbursed to the affected Unit Holder for each

purchase or repurchase transaction. Subject to any regulatory requirements, the Manager shall have the right to amend, vary and revise

the above said limits or threshold from time to time.


6 The Management and Administration of the Fund

6.1 Corporate Profile of the Manager AMB is a unit trust management company regulated by the SC. AMB is a subsidiary of ASNB since 2006 and is a member of PNB group of companies. It was incorporated on 22 March 1990. It has an authorised capital of RM5 million and a paid up capital of RM5 million. As at LPD, AMB has a total Fund size of RM3.43 billion. AMB is in the business of developing and promoting unit trust funds and its objective is to provide investors with an opportunity to participate in performing funds with diversified investments such as equities, bonds, short-term money market instruments and other capital market instruments. At present, AMB manages 16 funds of which seven are equities funds, four are bonds and fixed income funds, three are balanced funds, one mixed asset fund and one capital protected fund. There are currently five external investment managers.

Our Staff Strength AMB has a total staff strength of 41 experienced personnel in the unit trust business, comprising 34 executives and 7 non-executives as at LPD, and is responsible for the day-to-day management of the AMB Family of Funds in accordance with the provisions of the Deeds. Full details of the Manager’s duties are set out in the Deeds, which is available for inspection at our principal office at 34th Floor, Menara PNB, 201-A Jalan Tun Razak, 50400 Kuala Lumpur. Functions, Duties and Responsibilities of AMB The general functions, duties and responsibilities of the Manager include, but are not limited to, the following: 1. Carry out and conduct its unit trust business in a proper and diligent manner and manage and

administer the Fund in a proper, diligent and efficient manner in accordance with the Deed, the Act, securities laws, the Guidelines and other applicable laws at all times and acceptable and efficacious business practice within the unit trust industry;

2. Observe high standards of integrity and fair dealing in managing the Fund to the best and

exclusive interest of the Unit Holders; 3. Act with due care, skill and diligence in managing the Fund, and effectively employ the

resources and procedures necessary for the proper performance of the Fund; 4. Not to make, in any manner, any inequitable or illegal profit from its fiduciary position; 5. Ensure that the Deed and the Prospectus are at all times in compliance with the Act, the

securities laws, the Guidelines and other applicable laws at all times;


6. From time to time, modify or propose such modifications to the Deed and/or the Prospectus as may be necessary or desirable in the interests of the Unit Holders;

7. Take all necessary steps to ensure that the investments and other assets of the Fund are adequately protected and properly segregated; and

8. Unless otherwise specified in writing by the SC, ensure that the Fund has, at all times, an appointed trustee.

6.2 Past Performance of The Manager The following is the summary of the past performance of the Manager based on the financial statements for the past three years.

Year Ended 31 December



2009 (RM’000) 2008 (RM’000) 2007*(RM’000) Paid up capital 5,000 5,000 4,000 Shareholders' Fund 61,663 55,182 44,608 Operating revenue 36,913 27,344 30,212 Pretax profit 21,189 14,167 13,695 Net profit after taxation 15,856 10,574 9,938

* AMB changed its financial year end from 30 June to 31 December 2007. The financial year ended 31 December 2007 covers the period from 1 July 2006 to 31 December 2007. 6.3 Profile of the Board of Directors of the Manager The Manager

The Manager has an experienced Board of Directors, several of whom have a background in financial markets. They are responsible for overseeing the activities of the Manager and the establishment of the Fund’s policies. Board meetings are held formally at least four times in a year and more frequently should circumstances require. There are five members on the Board of Directors including two Independent Directors. Board of Directors Tun Ahmad Sarji bin Abdul Hamid (Chairman) (Non-Executive/Non-Independent)

Tun Ahmad Sarji bin Abdul Hamid was appointed as a Director of AMB on 30 November 2006, by virtue of his position as the Chairman of PNB, the holding company of ASNB. He is a member of the Investment Committee for all the AMB Family of Funds and on 11 March 2011, he was appointed as a member of the Investment Committee of AMBDN. Prior to his appointment as the Chairman of PNB, Tun Ahmad Sarji was the Chief Secretary to the Government from 1990 to 1996. He was the President of the Commonwealth Association for Public Administration and Management, from 1996 to 1998. He was the Chairman of the Institute of Islamic Understanding Malaysia (1992-2009).


He was conferred by the Government the "Tokoh Maal Hijrah" for the Islamic year 1420 (1999) and the Director of the Year Award by the Malaysian Institute of Directors in 1999. Tun Ahmad Sarji also represents the PNB Group as Chairman of several other companies. Tun Ahmad Sarji is a graduate of the University of Malaya, the Harvard University of the United States of America, and the Institute of Social Studies, The Hague, Netherlands. He was conferred the Honorary Degree of Doctor of Science (Management) by Universiti Utara Malaysia, Doctor of Business Administration by the Nottingham-Trent University, the United Kingdom, Doctor of Letters by the Universiti Malaysia Sarawak and Doctor of Management by the International Islamic University Malaysia. He was appointed Chairman of the Second National Economic Consultative Council on August 4, 1999. Tun Ahmad Sarji is a member of the Board of Trustees of Oxford Centre for Islamic Studies and the Asian Institute of Management, Manila, the Philippines, and joint-Chairman, Malaysia Centre for Commonwealth Studies, Cambridge, the United Kingdom. Tan Sri Dato' Sri Hamad Kama Piah bin Che Othman (Non-Executive/Non-Independent) Tan Sri Dato' Sri Hamad Kama Piah bin Che Othman was appointed as a Director of AMB on 30 November 2006. On 26 February 2002, Tan Sri Dato' Sri Hamad Kama Piah was appointed as the Group Managing Director/Group Chief Executive of PNB, and subsequently renamed President and Group Chief Executive. Tan Sri Dato' Sri Hamad Kama Piah has been with PNB since 1979. Prior to his present appointment, Tan Sri Dato’ Sri Hamad Kama Piah held various senior positions at PNB. Tan Sri Dato' Sri Hamad Kama Piah is also the Chairman of the Board of Directors of Universiti Malaysia Kelantan since May 2007 and sits on the Board of Directors of a number of Malaysian companies. A graduate of Institut Teknologi MARA (presently known as Universiti Teknologi MARA), he also holds a Masters degree from the University of Swansea, United Kingdom. He is a Senior Fellow of the Financial Services Institute of Australasia (FINSIA). He also holds the designation of a Certified Financial Planner and a Registered Financial Planner, and represents the PNB Group as Director in several other companies. Tan Sri Dato' Dr. Wan Mohd. Zahid bin Mohd. Noordin (Non-Executive/Independent) Tan Sri Dato' Dr. Wan Mohd. Zahid bin Mohd. Noordin was appointed as a Director of AMB on 30 November 2006. He is a member of the Investment Committee for all the AMB Family of Funds and on 11 March 2011, he was appointed as a member of the Investment Committee of AMBDN. Tan Sri Dato' Dr. Wan Mohd. Zahid holds a Bachelor of Arts Degree from the University of Malaya, Master of Arts Degree from Stanford University, Palo Alto, California, and Ph.D. from the University of California, Berkeley, California. He also attended the Advanced Management Programme at Harvard University Business School. In 1997, Tan Sri Dato' Dr. Wan Mohd Zahid was conferred the Doctor of Laws "Honoris Causa" by the University of Lancaster, the United Kingdom.


Tan Sri Dato' Dr. Wan Mohd. Zahid has more than 30 years of experience in the Malaysian education service. He held the post of Director-General of Education of Malaysia in 1993 and upon his retirement, was appointed advisor with special functions to the Minister of Education. He had served as consultant to the Institute of Innovation and Technology, Manila, the Philippines, and the UNICEF Research project on Pre School Education. He had also served as a council member of the International Bureau of Education in Geneva and the Islamic Scientific, Education, Social and Cultural Organisation (ISESCO) in Rabat, Morocco. In September 1999, he was appointed by UNESCO to serve as a consultant to the Ministry of Education, Saudi Arabia, when the country embarked on an education reform initiative. In 2008 Tan Sri Dr Wan Mohd Zahid was appointed as Chairman of the Higher Education Academy of the Ministry of Higher Education. In 2011 he was appointed to serve as Chairman of the Education Advisory Council of the Ministry of Education. Tan Sri Dato' Dr. Wan Mohd. Zahid sits on the Boards of Sime Darby Berhad and SP Setia Berhad. He aslo serves as Chairman of several companies. He had served as Chairman of Berger International Singapore, and Deputy Chairman of International Bank Malaysia Berhad until the merger of the bank.

Tan Sri Dato' Md Desa bin Pachi (Non-Executive/Independent) Tan Sri Dato' Md. Desa bin Pachi was appointed as a Director of AMB on 22 December 2006, He is a member of the Investment Committee for all the AMB Family of Funds and on 11 March 2011, he was appointed as a member of the Investment Committee of AMBDN. On 12 July 2010 he was also appointed as a member of the Risk Management Committee of the Board of Directors of PNB. Tan Sri Dato' Md. Desa is a Chartered Accountant and was admitted as an Associate Member of the Institute of Chartered Accountants, Australia, in 1962, and a Fellow of the Institute of Chartered Accountants, Australia in 1974. He studied accountancy in Melbourne, Australia, under a Colombo Plan Scholarship. He joined Shell Group of Companies in 1962 and served in various capacities in the Finance Administration. From 1970 to 1976, he was in public practice as Chartered Accountant and was a partner of Desa Megat & Co and KPMG Peat Marwick. He is a Fellow Member of Malaysian Institute of Management. Subsequently, he was appointed as the first Chief Executive Officer of PNB and served as Chairman/Chief Executive Officer of Malaysia Mining Corporation Berhad, Executive Chairman of Fleet Group Sdn Bhd, Chairman/Managing Director of The New Straits Times Press (Malaysia) Berhad and Chairman of Sistem Televisyen Malaysia Berhad. From 1982 to 2006, he was the Chairman of Bumiputra-Commerce Holdings Berhad. He also sits on the Board of Directors of several other companies.

Dato’ Idris bin Kechot (Non-Executive/Non-Independent) Dato’ Idris bin Kechot was appointed as a Director of AMB on 30 November 2006. He was appointed as a member of the Investment Committee of AMBDN and all AMB Family of Funds on 17 March 2011. He obtained his Bachelor of Science Degree in Agribusiness from Universiti Putra Malaysia in 1983. In 1987, Dato’ Idris secured his Master Degree in Business Administration


specialising in Finance from the University of Stirling, United Kingdom. In 2006, he attended an Accelerated Development Programme at London Business School, the United Kingdom. He started his career in 1983 as an Investment Analyst at the Corporate Research Department of PNB undertaking industry and sectoral research. In 1988, he joined the Investment Division of PNB, responsible for the equity investment activities. His 21 year experience incorporates equity valuation, equity trading and portfolio management of the proprietary and unit trust portfolios. He has also undergone extensive training and attachment program locally and overseas, in the area of equity valuation, portfolio management and general management development. To further strengthen his skills and knowledge in the area of investment management, Dato’ Idris had obtained qualification as a Certified Financial Planner. He sits on the Board of Directors of several other companies. 6.3.1 Company Secretary Puan Adibah Khairiah binti Ismail@Daud (MIA 13755) Company Secretary With effect from 30 November 2006, Puan Adibah Khairiah binti Ismail@Daud was appointed as the Company Secretary of AMB. She holds Bachelor of Commerce from Australian National University. She is a Chartered Accountant and is a member of the Malaysian Institute of Accountants since 1999. Puan Adibah started her career with Messrs. Coopers & Lybrand, Public Accountants, from 1988 to 1994. She had served Sapura Holdings Sdn Berhad as Audit Manager from 1994 to 1997, and subsequently served Sapura Industrial Berhad (formerly known as Sapura Motors Berhad) from 1997 to 1999, as Head of Internal Audit. She had also served Percon Corporation Sdn Berhad as Financial Controller cum Company Secretary in 2002 to 2005. She joined PNB in 2005 and was seconded to Pelangi Berhad, as Chief Financial Officer. Puan Adibah is presently attached to the Company Secretary's Department of PNB since October 2006. She sits on the Board of Directors of several companies. 6.3.2 Senior Compliance Officer Encik Paisol bin Ahmad Senior Compliance Officer Encik Paisol bin Ahmad is a registered compliance officer with the SC and the designated Senior Compliance Officer of AMB. He has been the designated Senior Compliance Officer of funds of AMB which includes four Shariah funds, i.e. AMB Dana Yakin, AMB Dana Ikhlas, AMB Dana Arif since November 2006 and AMB Dana Aqeel – Capital Protected since December 2009. He is a Fellow of the Association of Chartered Certified Accountants, the United Kingdom, a member of the Malaysian Institute of Accountants and a Fellow of Financial Services Institute of Australasia (FINSIA). Encik Paisol has more than 15 years of experience in the unit trust industry, having served in various senior positions within the PNB Group since 1993. Encik Paisol bin Ahmad is a Certified Financial Planner. He sits in the Board of Directors of several companies.


6.4 Profile of the Key Management Staff of the Manager Puan Aldilla @ Zilfalila binti Abdul Halim (Sheila Halim) Chief Executive Officer Puan Sheila is the Chief Executive Officer of AMB since March 2008. Prior to joining AMB, Puan Sheila assumed a position as the Executive Director of CMS Asset Management Sdn Bhd, a subsidiary of Cahya Mata Sarawak Berhad (CMS). Later, she was seconded as the Acting Chief Executive Officer of CMS Trust Management Berhad. She was overall responsible for developing business strategies, marketing & sales plans and structuring products for CMS financial-related businesses in fund management and unit trust industry. She brings with her more than 15 years of marketing and investment management experience which includes having being an equity portfolio manager of PFM Capital, a subsidiary of PNB and later to having served as Director of Fund Management with Towry Law International. She holds a Bachelor of Science Degree in Mathematics & Statistics from the University of Western Ontario, Canada. Puan Ahirah Binti Abdul Rahman Head of Accounts Department Puan Ahirah binti Abdul Rahman had more than eight years of audit experience with an established audit firm before joining PNB in 1991. She was in the Finance Department, PNB and was subsequently transferred to the Accounts Department, ASNB in 2001 and was responsible for the overall accounting functions of the unit trust Fund. On 1 December 2006, Puan Ahirah joined AMB as a Head of Accounts Department. She holds a Diploma in Accountancy from Universiti Teknologi MARA (UiTM). Encik Md. Kudus bin Abdul Manaf Head of Operations Department Encik Md Kudus bin Abdul Manaf is the Head, Operations Department. He joined AMB on 1 December 2006. He has more than 24 years of working experience in PNB in various departments. He holds a Bachelor of Business and Administration Degree from Ottawa University USA and a Diploma in Business Studies from UiTM. He is responsible for the overall operations and administration of AMB. Puan Ross Liza Binti Othman Head of Product Development & Administration Department Puan Ross Liza binti Othman has more than 12 years experience in the financial market. Prior to joining AMB in December 2009, she was attached to the Fixed Income team in the Investment Department of American International Assurance Berhad for more than eight years where she was involved in various Fixed income investment operations which included bonds dealing, money market, forex as well as cash management and funding. She holds an Executive-Masters of Business Administration (Hons) from UiTM, Shah Alam and B.A. (Hons) Degree in Business Administration (Finance) from Michigan State University, East Lansing,USA. She is responsible for product development which include new product creation, existing product enhancement as well as product administration.


Encik Abdul Rani bin Hj Mohd Salleh Head of Business & Sales Channel Department Encik Abdul Rani Hj Mohd Salleh had more than 10 years of experience with financial institutions before joining ASNB in 2001. He was the Head of ASNB Office in Kota Bharu and ASNB Kangar (under Marketing & Investment Services Department) before joining Customer & Agent Relation Department, ASNB Head Office and was responsible for the overall ASNB customers’ feedback and special functions. On 1 December 2006, Encik Abdul Rani joined AMB as the Head of Business & Sales Channel. He holds a Diploma in Banking Studies from UiTM. Cik Zuwita binti Ibrahim Head of Direct Client & Marketing Department Zuwita Ibrahim has over than 10 years experience in the field of Product Development. Prior to joining ASNB in April 2005, she was with RHB Bank Berhad involved in the developing of retail deposit products of the bank and marketing plans to support the product sales & marketing strategy. After six years with the bank, she joined ASNB and was then seconded to AMB in June 2006 handling product development and administration. As the Head of Direct Client & Marketing of AMB, she is currently responsible for securing and generating new sales for the company’s business growth. She holds a B.A. (Hons) Degree in Business Administration (Finance) from DeMonfort University, Leicester, UK. During her tenure in ASNB, she has completed her graduate diploma in Applied Finance from Kaplan Professional, Australia. 6.5 The Investment Committee of the Fund Roles and Responsibilities of the Investment Committee

The Investment Committee (IC) is primarily responsible for formulating, implementing and monitoring the investment management strategies of the Fund in accordance with the investment objective set out for the Fund, the Deed of the Fund, the Guidelines and securities laws, the internal investment restrictions and policies and acceptable and efficacious investment management practices within the unit trust industry. The IC is also responsible for the overall performance of the Fund by ensuring that the Fund are managed professionally. In addition, the IC reviews and approves the portfolio strategies recommended by the EIM. The IC meets once a month and more frequently should circumstances require. The EIM will report on the activities and performance of the Fund directly to the IC at monthly intervals for overall reviews. The IC members are as follows: Tun Ahmad Sarji bin Abdul Hamid (as afore-mentioned) Tan Sri Dato’ Dr. Wan Mohd. Zahid bin Mohd. Noordin (as afore-mentioned) Tan Sri Dato’ Md. Desa bin Pachi (as afore-mentioned)


Dato’ Idris bin Kechot (as afore-mentioned) 6.6 The Shariah Committee 6.6.1 Roles and Responsibilities of the Shariah Committee Members

• To advise on all aspects of unit trust and fund management business in accordance with Shariah Principles;

• To provide Shariah expertise and guidance in all matters, particularly on the Fund’s Deed

and Prospectus, Fund structure, investments and other operational matters;

• 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 SC’s Shariah Advisory Council;

• To review the Fund’s compliance report and investment transaction report to ensure that

the Fund’s investments are in line with Shariah Principles; and

• To prepare a report to be included in the Fund’s interim and annual reports stating its opinion whether the Fund has been operated and managed in accordance with Shariah Principles for the financial periods concerned.

Where there is any ambiguity or uncertainty as to an investment, instrument, system, procedure and/or process, the Shariah advisor should consult the SC. The Shariah Committee meetings are held formally at least once in every 3 months in a year and more frequently should circumstances require. 6.6.2 Shariah Committee Members The Shariah Committee comprises of: Dato’ Dr. Abdul Halim bin Ismail Dato’ Dr. Abdul Halim bin Ismail was appointed as a member of the Shariah Committee of AMBDN managed by AMB on 11 March 2011. Dato’ Dr. Abdul Halim was the Managing Director of Bank Islam Malaysia Berhad (1983-1994), Chairman of the Board of Directors of Syarikat Takaful Malaysia Berhad (1984-1994), and the Executive Director Dealing of BIMB Securities Sdn. Berhad (1994-2010). He holds a Bachelor of Arts (Hons.), Degree in Economics from the University of Malaya and Doctor of Philosophy (D. Phil.) in Economics from the University of Oxford, the United Kingdom. Dato’ Dr. Abdul Halim sits on the Board of Directors of several companies


Datuk Dr. Syed Othman bin Syed Hussin Alhabshi Datuk Dr. Syed Othman bin Syed Hussin Alhabshi was appointed as a member of the Shariah Committee of AMBDN on 11 March 2011. He holds a Bachelor of Economics Degree in Statistics from University of Malaya, Master of Science in Statistics from University of Wisconsin, the United States of America and Ph.D. in Econometrics from University of Birmingham, the United Kingdom. Datuk Dr. Syed Othman has more than 30 years experience in the Malaysian education service. He was Professor, Dean of Graduate School and Acting Dean of Matriculation Centre of International Islamic University Malaysia and Deputy Vice-Chancellor (Academic) of Universiti Utara Malaysia. He also held the post of Deputy Director-General of Institute of Islamic Understanding Malaysia (IKIM) and had also previously served as the founding President and Chief Executive Officer of University Tun Abdul Razak. He is currently the Chief Academic Officer of the International Centre for Education of Islamic Finance (INCEIF), a university dedicated to Islamic Finance. He is currently a member of the Board of Directors of Etiqa Takaful Berhad; Pak-Kuwait Takaful Pte Ltd Pakistan; Maybank Islamic Berhad; Prima Prai Sdn Bhd.; Epen Bina Sdn Bhd.; Universiti Teknikal MARA and Institut Kefahaman Islam Malaysia (IKIM). He now sits on Shariah Advisory Committee for Labuan Reinsurance (L) Ltd.; MNRB Retakaful Berhad; MIDF Group of Companies and MIDF Amanah Asset Management Berhad and Singapore Unit Trusts Ltd. (SUT). He is also a Shariah advisor for Nomura Asset Management, a member of the Board of Trustees for Yayasan Bank Rakyat and a Certified Shariah Individual by the Securities Commission of Malaysia.

Prof. Dato’ Dr. Abdul Monir bin Yaacob Prof. Dato’ Dr. Abdul Monir bin Yaacob was appointed as a member of the Shariah Committee of AMBDN managed by AMB on 11 March 2011. Prof. Dato’ Dr. Abdul Monir obtained first Degree “al-Aliyah” from Al-Azhar University and a Diploma in Law and later a Master of Philosophy (Law) from University of London. He later completed his Ph.D at the International Islamic University of Malaysia in 1991. Prof. Dato’ Dr. Abdul Monir has more than 10 years experience as a lecturer and held the post of Associate Professor, Faculty of Law, Universiti Kebangsaan Malaysia. He was appointed as Assistant Director General of Institut Kefahaman Islam Malaysia (IKIM) in November 1997 and was later made Director General of IKIM from April 2002 to March 2005. He was appointed as Professor at the Department of Syariah and Law, Academy of Islamic Studies, the University of Malaya from January 2006 to May 2007 and as the Academic Advisor to Sultan Sharif Ali Islamic University, Brunei Darussalam from May 2007 to May 2009. His present position was a Senior Research Fellow at the Department of Syariah and Law, Academy of Islamic Studies, the University of Malaya. Prof. Dato’ Dr. Abdul Monir is also a member of Shariah Committee of Singapore Unit Trust Limited.


Prof. Dato’ Dr. Mahmood Zuhdi bin Hj Ab. Majid

Prof. Dato’ Dr. Mahmood Zuhdi bin Hj Ab. Majid was appointed as a member of the Shariah Committee of AMBDN managed by AMB on 11 March 2011. .

Prof. Dato’ Dr. Mahmood Zuhdi holds a Bachelor Degree in Shariah from Yayasan Pengajian Tinggi Islam Kelantan, and later obtained a Masters in Shariah from University Al-Azhar, Cairo, as well as a Masters in Philosophy from University of Kent. He went on to complete his Ph.D at the University of Malaya. He was the Dean of the Faculty of Syariah as well as Director of Academy of Islamic Studies, University Malaya. He is currently a Professor at the Department of Fiqh and Usul Fiqh, Kuliyyah of Islamic Revealed Knowledge and Human Sciences, International Islamic University Malaysia.

Prof. Dato’ Dr. Mahmood Zuhdi also sits on various advisory boards. He is the Chairman of the Shariah Committee of Public Bank Berhad and Shariah advisor of As-Salihin Trustee. He is also the author of more than 20 Islamic publications. 6.7 Profile of the EIM 6.7.1 Permodalan Nasional Berhad

PNB has been entrusted by AMB to manage the investments of AMBDN. Established in 1978 as one of the vehicles of the New Economic Policy, PNB has had considerable success in promoting share ownership of the Bumiputera in the corporate sector through its unit trust funds. With more than 30 years of experience in fund management, PNB has a proven track record whereby returns from its unit trust funds have benefited Malaysians from all walks of life from the age of six months and above. As at LPD, PNB has staff strength of 658 persons and managed total unit trust funds of RM133.57 billion. AMB assesses the performance of PNB as the EIM of AMBDN based on the investment mandate, objectives and other functions as stipulated in the Investment Management Agreement signed between AMB and PNB, taking into consideration the relevant market and industry benchmarks.

Profile of the Key Management Staff of PNB Tan Sri Dato’ Sri Hamad Kama Piah bin Che Othman President and Group Chief Executive (as afore-mentioned) Puan Adibah Khairiah binti Ismail @ Daud (MIA 13755) Company Secretary (as afore-mentioned) Datin Paduka Jamiah binti Abdul Hamid Deputy President - Corporate and International

Datin Paduka Jamiah binti Abdul Hamid started her career in 1982 as the first batch of management trainee with PNB. Having served the organization for more than 25 years Datin Paduka Jamiah has accumulated extensive experience and expertise through the various positions held in the areas of investment operations, corporate finance, corporate communication, human resource and international fund. She received her tertiary education abroad (University of Northern Illinois USA,


B.Sc (Finance) and locally (Universiti Kebangsaan Malaysia, MBA). Currently, she is a director of several of PNB investee companies and also a holder of Capital Market Services Representative's Licence and is a Certified Financial Planner. Today, Datin Paduka Jamiah is the Deputy President – Corporate and International of PNB.

INVESTMENT DIVISION OF PNB

The Investment Division of PNB is responsible for managing unit trust funds for ASNB, PNB SIF and AMBDN for AMB. Its investment process incorporates fundamental, research-driven and team-based investment decisions which are guided by the investment committee of the abovementioned unit trust funds. The portfolio management team formulates and recommends the investment strategies of the funds in accordance with the investment mandates based on optimal asset allocation strategies and diversification. These strategies are executed by the equity and fixed-income dealing teams. The division is well supported by a team of analysts that performs the securities evaluation process which incorporates economic, industry, sector, financial and credit analysis. As at LPD, the Investment Division has a staff strength of 63 persons. The investment professionals are segregated into a team of 19 professionals in the portfolio management team, 9 professionals in the equities trading team, 5 professionals in the fixed-income investment team, 22 analysts in the investment evaluation team and 8 are support staff. These professionals continually strive to meet the expectation of unitholders of funds under PNB’s management in carrying out their duties. The Investment Division of PNB and its related areas have been awarded MS ISO 9001-2000 certification for its investment process. Profile of Key Management Staff of the Investment Division of PNB Encik Wan Roshdi bin Wan Musa Chief Investment Officer

Encik Wan Roshdi bin Wan Musa, the designated Fund Manager for the investment management of AMBDN. Encik Wan Roshdi bin Wan Musa, is presently the Chief Investment Officer of PNB. He holds a Masters Degree in Business Administration, a Bachelor of Science in Finance from Northern Illinois University, United States of America and a Diploma in Accountancy from UiTM. Encik Wan Roshdi is a holder of Capital Markets Services Representative’s Licence and also a qualified Certified Financial Planner (CFP). He started his career in 1985 at the Corporate Finance and Corporate Services Department of PNB, rising to a position of Head of Department. In 2003, Encik Wan Roshdi was transferred to the Investment Division of PNB to assist the Senior Vice-President in supervising the investment evaluations, market operations and portfolio management of the proprietary and unit trust funds before being promoted to the current position as Chief Investment Officer in 2010. He also sits on the Board of Directors of several companies. Encik Abdul Rahim bin Ahmad Vice-President I, Portfolio Management Department

Encik Abdul Rahim bin Ahmad, Vice-President I, is presently the Head of Portfolio Management Department of Investment Division of PNB. He holds a Bachelor Degree in Statistics from Universiti Kebangsaan Malaysia and a Graduate Diploma in Applied Finance and Investment from Financial Services Institute of Australasia. Encik Abdul Rahim is also a fellow member of Financial Services Institute of Australasia and a qualified Certified Financial Planner (CFP). He started his career at PNB


in 1991 as an Investment Analyst in the Investment Operations Department. Presently, he is responsible for the overall operations of Portfolio Management Department and supervises the daily fund management of PNB’s proprietary fund and all its unit trust funds under its management. Encik Abdul Rahim is also a holder of Capital Markets Services Representative’s License.

6.7.2 Designated Investment Manager of the Fund Designated Investment Manager for AMBDN

PNB undertakes the investment management of AMBDN. The designated Investment Manager of the Fund is Encik Wan Roshdi bin Wan Musa , whose profile is set out on page 56. 6.7.3 Duties of the EIM

Some of the main duties of the EIM are as follows:

To comply with the operation procedures and invest the Fund in accordance with the Guidelines;

To exercise due diligence and vigilance in carrying out its function and duties under the Investment Management Agreement and comply with the Act, directives and guidelines issued by the relevant authorities from time to time.

To conduct market, technical and economic research to identify suitable investments and to facilitate optimal asset allocations for the Fund.

To endeavour to use its professional discretion to reallocate assets at the most appropriate times with the aim to optimising returns for the Unit Holders of the Fund.

To seek to invest in the most suitable assets within each class of assets.

To submit recommendations to the Investment Committee for review and approval of portfolio strategies, at the Investment Committee meeting to be held monthly.

6.7.4 Declaration of Absence of Conflict of Interest involving EIM

The EIM has in place policies and procedures to deal with any conflict of interest situations. In making an investment transaction for the Fund, the EIM will not make improper use of its positions in managing the Fund to gain for themselves, directly or indirectly, or to cause detriment to the interests of Unit Holders. As at LPD, other than as disclosed in Chapter 10 of this Prospectus, to the best of the Manager’s knowledge, there has been no occurrence of conflict of interest involving the EIM. 6.8 Manager’s Disclosure of Material Litigation and Arbitration

As at LPD, there is no material litigation or arbitration, including any pending or threatened and there are no facts likely to give rise to any proceedings, which might materially affect the business / financial position of the Manager or any of its delegates.


7 The Trustee of the Fund

7.1 Profile of AmanahRaya Trustees Berhad ART was incorporated under the Companies Act 1965 on 23 March 23 2007 and registered as a trust company under the Trust Companies Act 1949. ART is a subsidiary of Amanah Raya Berhad (ARB) which is wholly owned by the Minister of Finance (Incorporated). ART took over the corporate trusteeship functions of ARB and acquired ARB’s experience of more than 43 years in trustee business. ART has been registered and approved by the SC to act as trustee to unit trust Fund. ART will subsequently substitute ARB as the existing trustee for the two unit trust Fund under ARB’s trusteeship and has 130 unit trust Fund under ART’s trusteeship. As at LPD, ART has 67 staff (45 Executives and 22 Non-Executives). ART has an authorised capital RM5,000,000. Its issued and paid-up share capital is RM2,000,000 and RM1,000,000 respectively. The shareholders of ART are:

% of equity

Amanah Raya Berhad (344986-V) 20

Amanah Raya Nominees (Tempatan) Sdn Bhd (434217-U) 20

Amanah Raya Capital Sdn Bhd (549057-K) 20

AmanahRaya Capital Group Sdn Bhd (760289-U) 20

AmanahRaya Modal Sdn Bhd (760322-X) 10

Amanah Raya Nominees (Asing) Sdn Bhd (684546-P) 10

FINANCIAL PERFORMANCE The following is a summary of the past performance of ART based on audited financial statements for financial year ended 31 December, since its incorporation on 23 March 2007:

2010

(Unaudited) (RM ‘000)

2009 (RM ‘000)

2008 (RM ‘000)

Issued and Paid Up Capital 1,000 1,000 1,000

Shareholder’s Funds 3,974 3,624 5,999

Turnover 24,847 20,024 17,282

Pretax Profit / Loss 18,265 14,340 11,783

After Tax Profit / Loss 14,350 10,625 8,597


Board of Directors Datuk Idrus Bin Harun – Chairman / Independent Hajjah Habsah Binti Bakar – Director / Chief Executive Officer / Non-Independent Dato’ Ahmad Rodzi Bin Pawanteh – Director / Non-Independent Datin Aminah Binti Pit Abd Raman – Director / Independent Puan Alina Binti Hashim – Director / Non-Independent Tuan Haji Ab. Gani Bin Haron – Director / Independent Dato’ Haji Ahmad Kamal Bin Abdullah Al-Yafii – Director / Independent Encik Zainudin Bin Hj. Suhaimi – alternate to Hajjah Habsah Binti Bakar Key Management Staff Hajjah Habsah Binti Bakar - Chief Executive Officer Encik Zainudin Bin Hj. Suhaimi - General Manager Encik Arzlee Bin Abdul Rahman – Assistant General Manager Encik Zainul Abidin Bin Hj. Ahmad - Company Secretary Puan Wan Zaleha Binti Wan Kamarul Zaman - Legal Manager Encik Azril Bin Abd Kadir - Compliance Manager Encik Mohd Sofian Bin Hj. Kamaruddin – Debt Capital Markets and Trusts Section Manager Encik Mohd Aziyan Bin Abdullah - Finance and Corporate Services Manager Profile of the Key Management Staff Hajjah Habsah binti Bakar - Chief Executive Officer Hajjah Habsah Binti Bakar is the Director and Chief Executive Officer of ART effective from 16 February 2007. She has served as General Manager at ARB for 12 years. She was in charge of various departments such as Corporate Trust, Legal, Branch Operations, Marketing, Corporate Communications, Product Development and Customer Relationship Management of Amanah Raya Berhad during that tenure. She holds a Master of Business Administration from University of Malaya, Bachelor of Law (Hons) from University of Malaya and a postgraduate Diploma in Syariah Law and Practice from the International Islamic University Malaysia. She has vast experience in legal administration since joining the Judicial and Legal Service in 1985. She has served at the Attorney General’s Chambers, Ministry of Housing and Local Government, the High Court and the Department of Public Trustee. Encik Zainudin Hj Suhaimi Encik Zainudin Hj Suhaimi is the General Manager of ART. He holds a Degree in Business Administration (Finance) from Universiti Putra Malaysia and a Diploma in Business Studies from Universiti Teknologi MARA (UiTM). He is in charge of the operations of ART. He has served Corporate Trust Department of ARB since 1992 and later was seconded to ART for about 1 year. He officially joined ART in June 2008. He is also a trust officer at Amanah Raya Labuan Limited. He is an associate member of the Financial Planning Association of Malaysia since 2005. Encik Arzlee Abdul Rahman Encik Arzlee Abdul Rahman has recently joined ART in July 2009 as the Assistant General Manager. He holds a B.Sc. in Economics/Finance from The University of Hartford, Connecticut, USA. Prior to joining ART, he managed Amanah Raya Nominees (Tempatan) Sdn Bhd for about 5 years, in which he developed custodial & securities services. Overall, he has more than 15 years working


experience in the financial industry, including corporate forex & money market in a local bank treasury, stock broking company, insurance and finance companies. Encik Zainul Abidin Bin Hj. Ahmad Encik Zainul Abidin Bin Hj. Ahmad is the Group Company Secretary. He has more than 14 years’ working experience in legal and secretarial matters. He began his career in 1990 as a Legal Assistant with Messrs Kam Woon Wah & Company. In February 2002, he joined ARB where he oversees the secretarial matters of the Group. Puan Wan Zaleha Binti Wan Kamarul Zaman Puan Wan Zaleha Binti Wan Kamarul Zaman is the Legal Manager of ART. She holds a Masters in Business Administration from Universiti Teknologi MARA Malaysia and a Bachelor of Law (LLB Hons) from University of Huddersfield, United Kingdom. She was called to the Malaysian Bar in 2001 and had pursued legal practice specialising in convenyancing for three years before joining Amanah Raya Berhad in 2004. She had served as a Compliance Officer and Business Development Executive at the Corporate Trust Department of ARB and later seconded to ART for about a year. She officially joined ART in June 2008 and presently is the head of legal department of ART. Encik Azril Bin Abd Kadir Encik Azril Bin Abd Kadir is the Manager of Compliance Department at ART. He joined ART in January 2008 and brings with him more than 7 years experience in the collective investment scheme industry. He graduated with a Bachelor of Science in Business Administration from the University of Missouri Columbia. Prior to joining ART, he was the registered compliance officer of a local asset management company. Encik Mohd Sofian Bin Hj. Kamaruddin Encik Mohd Sofian Bin Hj. Kamaruddin is the Debt Capital Markets and Trusts Section Manager of ART. He holds Master in Business Administration from Universiti Teknologi MARA and Bachelor of Accountancy (Hons) from Universiti Putra Malaysia. He is in charge of the debenture trusteeship segment of ART. He had served at the Audit and Compliance Division of Malaysia Monetary Exchange Berhad (presently known as Bursa Derivatives Malaysia Berhad) as an audit executive and subsequently as Compliance Officer in a futures broking company for more than 5 years. He has served Corporate Trust Department of ARB since March 2003 and later was seconded to ART for about a year. He officially joined ART in June 2008. He is also a member of Malaysian Institute of Accountants. Encik Mohd Aziyan Bin Abdullah Encik Mohd Aziyan Bin Abdullah is the Accountant of ART. He is a member of the Malaysian Institute of Accountants. He holds a Bachelor (Hons) of Accountancy from Universiti Teknologi MARA. He joined ART on 1 April 2009 where he oversees the finance and administrative matters of the company. 7.2 Trustee’s Responsibility Statement The Trustee consents and agrees to assume the position as Trustee of the Fund and undertakes all the obligations in accordance with the Deed and all relevant laws and agrees and undertakes to provide an indemnity to the Manager for the benefit of the Unit Holders of the Fund for any loss incurred as a result of any non-performance of the Trustee.


7.3 Trustee’s Disclosure of Material Litigation and Arbitration As at LPD, ART is not engaged in any material litigation or arbitration either as plaintiff or defendant, and the Trustee is not aware of any proceedings, pending or threatened or of any facts likely to give rise to any proceedings which might materially affect the business/financial position of ART.

7.4 Duties and Obligations of the Trustee The Trustee’s main functions are to act as trustee and custodian of the assets of the Fund and to safeguard the interests of Unit Holders of the Fund. In performing these functions, the Trustee has to exercise all due care and vigilance and is required to act in accordance with the provisions of the Deed, the Act, the Guidelines and the securities law. Apart from being the legal owner of the Fund’s assets, the Trustee is also responsible for ensuring that the Manager performs its duties and obligations in accordance with the provisions of the Deed, the Act, the Guidelines and the securities law. The duties and obligations imposed on the Trustee are as follows: To act as custodian of the assets of the Fund and to safeguard the interests of Unit Holders. The

Trustee is to actively monitor the administration of the Fund by the Manager to ensure that the interests of the Unit Holders are upheld at all times. In discharging its duties, the Trustee shall not only depend on submission of reports by the Manager;

The Trustee is to report to the SC if it is of the view that the Manager has not acted in the

interests of Unit Holders or in accordance with the provisions of the Deed or that it has failed to comply with the Guidelines, the Deed, the Act and the law;

Ensure that the Manager does not make improper use of its position in managing the Fund to

gain, directly and indirectly, an advantage for itself or any other person or to cause detriment to the interest of Unit Holders;

To act continuously as Trustee under the Fund until such Fund is terminated or until the Trustee

has retired from such Fund; To show the degree of care and diligence required of a Trustee in carrying out its functions and

duties and in protecting the rights and interest of the Unit Holders to which the Deed relates; To keep or cause the Manager to keep proper records of all transactions, distributions, profits and

income received and distributed and accounts in relation to the Fund; To be informed of any investments or disposals which the Manager undertakes not later than the

next Business Day after the day in which the transactions were undertaken; To be responsible for the collection and periodical distribution of income earned from the

investment portfolio to the Unit Holders subject to delegation of such duties to the Manager;


To require the Manager to keep it fully informed as to details of the Manager’s policies on investments and any changes thereof. Whenever it is of the opinion that these policies are not in the interests of the Unit Holders, the Trustee may, after considering any representations made by the Manager in respect of that opinion, summon a meeting of Unit Holders to consider its opinion and the actions that may be taken against the Manager; and

To cause the accounts to be audited at the end of each accrual period / financial year by the

auditor and that each Unit Holder of the Fund is furnished with a copy of the interim and annual reports of the Fund by post within two months from the end of the financial period the reports covers.

7.5 Retirement, Removal or Replacement of the Trustee The Trustee may retire upon giving 12 months notice to the Manager of its desire to do so, or such shorter period as the Manager and the Trustee shall agree, and may by Deed appoint in his stead a new trustee approved by the SC. Pursuant to section 299(1) of the Act, it is the duty of the Manager to remove the Trustee as soon as it becomes aware that the Trustee: • Has ceased to exist; • Has not been validly appointed; • Is not eligible to be appointed or to act as Trustee under section 290 of the Act; • Has failed or refused to act as Trustee in accordance with the provisions or covenants of the

Deed or the provisions of the Act; • Is under investigation for conduct that contravenes the Act, the Trust Companies Act, 1949, the

Trustee Act, 1949, the Companies Act, 1965, or any securities law; • When 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 the 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).

The Trustee may be removed and another trustee (duly approved as aforesaid) may be appointed by a special resolution of the Unit Holders at a duly convened meeting of which notice has been given to the Trustee and the Manager. The Manager will summon a meeting of the Unit Holders for the purpose of considering and if thought fit, passing a resolution for the removal of the Trustee in the event that the Unit Holders request the Manager to do so, in the manner as stated in the Deed. 7.6 Powers of the Trustee to Remove or Replace the Manager The Trustee may remove and replace the Manager if the Manager has failed or neglected to carry out its duties to the satisfaction of the Trustee, and for other reasons desirable in the interest of the Unit Holders, after consultation with the SC and with the approval of the Unit Holders. The Manager may also be removed if the Manager is in liquidation (except for the purpose of amalgamation or reconstruction or some other purpose approved by the relevant authorities), is under receivership or ceases operations, or has to the prejudice of the Unit Holders failed to comply with any provisions of the Deed or the Act, and other relevant laws. The Manager may also be removed if a special resolution is passed by the Unit Holders that the Manager be removed.


In any of the above said grounds, the Manager shall upon receipt of a written notice from the Trustee, ipso facto cease to be the management company of the Fund. The Trustee shall, at the same time, by writing, appoint some other corporation approved by the relevant authorities to be the management company of the Fund provided such corporation shall have entered into such deed or deeds as the Trustee may consider to be necessary or desirable to secure the due performance of its duties as management company for the Fund.


8 Salient Terms of the Deed

The following is a summary of the Deed of the Fund. Certain salient terms of the Deed are summarised in other sections of this Prospectus. Recipients of this Prospectus and all prospective investors in the Units should refer to the Deed to confirm specific information and to obtain a detailed understanding of the Fund. The Deed is available for inspection at the principal place of business of the Manager at 34th Floor, Menara PNB, 201-A, Jalan Tun Razak, 50400 Kuala Lumpur and the principal place of business of the Trustee. The Deed AMBDN is a unit trust fund constituted by the Deed, as entered into between the Trustee and AMB. The Deed came into effect on the date of registration by the SC. Each Unit Holder shall be entitled to the benefit of and shall be bound by the terms and conditions of the Deed. Pursuant to the Deed, the Trustee shall take into its custody or control all the assets of the Fund and hold the same in trust for the Unit Holders in accordance with the Deed and all relevant laws. The Deed is governed by, and shall be construed in accordance with, the laws of Malaysia. 1. RIGHTS AND LIABILITIES OF UNIT HOLDERS

Unit Holders shall, inter alia, have the right to attend and vote at meetings of Unit Holders. However no Unit Holder shall be entitled to require the transfer to him of any investment or other property comprised in the Fund or to interfere with or question the exercise by the Trustee or the Manager on his behalf of the rights of the Trustee as owner of such Fund.

The liability of Unit Holders is limited to the purchase price paid for the Units. Unit Holders are not under any obligation to indemnify the Manager and/or the Trustee for liabilities incurred on behalf of the Fund which exceeds the gross asset value of the Fund, and any right of indemnity of the Trustee and/or the Manager shall be limited to recourse to the Fund.

2. MAXIMUM FEES AND CHARGES PERMITTED BY THE DEED

The maximum rates for the sales charge, transfer charge, management fee and trustee fee are provided in the Deed and are set out in sections 4.1.1, 4.1.4, 4.2.1 and 4.2.2 of this Prospectus.

3. INCREASE IN FEES AND CHARGES FROM THE LEVEL DISCLOSED IN THE PROSPECTUS AND

THE MAXIMUM RATE PROVIDED IN THE DEED

The annual management fee and the trustee fee shall not exceed the maximum stated in the Deed. The annual management fee and the trustee fee cannot be charged at a rate higher than that disclosed in the Prospectus unless the Manager and the Trustee have agreed on a higher rate in accordance with the Deed and Unit Holders have been notified of the higher rate and the effective date.


The sales and repurchase charges shall not exceed the maximum as set out in the Deed. The Manager may only charge a higher sales charge than that disclosed in the Prospectus in accordance with the Deed and all relevant laws.

4. PERMITTED EXPENSES PAYABLE OUT OF THE FUND’S PROPERTY

Only expenses which are directly related and necessary may be charged to the Fund. These include (but are not limited to) the following:

commissions/fees paid to brokers in effecting dealings in the investments of the Fund shown on the contract notes or confirmation notes;

taxes and other duties charged to the Fund by the Government and other authorities;

fees and other expenses properly incurred by the Auditor appointed for the Fund;

fees for the valuation of any investment of the Fund by independent valuers for the benefit of the Fund; and

costs incurred for any modification of the Deed or for meetings of Unit Holders (save where such modification or meeting is convened for the benefit of the Manager and/or the Trustee).

The Deed provides that expenses such as general overheads, costs for services expected to be provided by the Manager, and expenses incurred in the registering and issuing of the Prospectus (unless no service charges are levied on the Units sold) and the remuneration of any delegate of the Manager, shall not be charged to the Fund. The Trustee shall ensure that all expenses charged to the Fund are legitimate, not excessive and do not go beyond standard commercial rates.

5. REMOVAL, RETIREMENT AND REPLACEMENT OF THE MANAGER AND THE TRUSTEE

Please refer to section 7.6 of this Prospectus (in relation to the retirement, removal and replacement of the Manager) and section 7.5 of this Prospectus (in relation to the retirement, removal and replacement of the Trustee).

6. TERMINATION OF THE FUND

The Fund shall continue unless determined by the Trustee or the Manager under the provisions of the Deed. The Trustee shall as soon as practicable after the determination of the Fund give to each of the Unit Holder notice of such determination.

The Trustee may inter alia in any of the following events determine the Fund:- a) if the Manager shall go 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 shall summon a meeting of Unit Holders in accordance with the provisions of the Deed for the purpose of seeking directions from the Unit Holders. If at any such meeting a special resolution to terminate and wind up the Fund is passed by the Unit Holders, the Trustee shall apply to the Court for an order confirming such special resolution.

7. UNIT HOLDERS’ MEETING

The Unit Holders may apply to the Manager to summon a meeting for any purpose. Unless otherwise required by law, the Manager shall, not later than 21 days of receiving an application from not less than 50 or 1/10 in number, of all Unit Holders, convene a meeting of the Unit Holders. The Trustee and the Manager may summon a Unit Holders' meeting in accordance with the Deed for any purpose.

The quorum required for a meeting of the Unit Holders shall be five (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 voting on a Special Resolution shall be five (5) Unit Holders, whether present in person or by proxy, who must hold in aggregate at least twenty five per centum (25%) of the Units in circulation at the time of the meeting and provided further that if the Fund has five (5) or less Unit Holders, the quorum required for a meeting of the Unit Holders of the Fund shall be two (2) Unit Holders, whether present in person or by proxy; if the meeting has been convened for the purpose of removing the Manager and/or the Trustee, the Unit Holders present in person or by proxy must hold in aggregate at least twenty five per centum (25%) of the Units in circulation at the time of the meeting. Unless otherwise prescribed by law, a Unit Holders' meeting summoned pursuant to the Deeds shall be held not later than 2 months after the notice was given, at the time and place stipulated in the notice and advertisement.


9 Exemptions Granted by the SC

Exemptions from the Guidelines for AMBDN

Shareholders, Directors and Key Personnel

Clause 3.07

“A director of a management company should not:

(a) hold office as director of more than one management company at any one time; and

(b) hold office as member of the investment committee of fund’s operated by another

management company.”

AMB has obtained an exemption from the above clause to allow all the directors of AMB to remain as directors of other management companies and all of the directors of AMB, save for Tan Sri Dato’ Dr. Wan Zahid bin Mohd. Noordin and Dato’ Idris bin Kechot, to remain as members of the investment committee of other funds managed and administered by other management companies.

Exemption from Clause 3.07 of the Guidelines has been granted to AMB for the above purpose via a letter dated 23 November 2006.

Delegation of Function by the Management Company

Clause 5.09 (a)

“An officer of the delegate (whether foreign or otherwise) should not hold office as member of

(a) the investment committee of any fund for which the fund manager is appointed to

manage.”

AMB has obtained an exemption from the above clause to allow several directors of PNB, i.e. Tun Ahmad Sarji bin Abdul Hamid and Tan Sri Dato’ Dr. Wan Zahid bin Mohd. Noordin to be members of the investment committee of the Fund.

Members of Investment Committee Clause 6.04 (a), (b) & (e)

“A member of the investment committee should not hold office as:

(a) member of an investment committee of funds managed and administered by another management company;

(b) director of another management company;

(e) an officer of the delegate that carry on the fund management function for the fund.”


Exemption from the above clauses was extended to allow:

(i) Tun Ahmad Sarji bin Abdul Hamid and Tan Sri Dato’ Md. Desa bin Pachi to remain as the members of the investment committees of funds managed and administered by other management companies;

(ii) to allow all members of the investment committee to be directors of other management

companies, i.e. Amanah Saham Nasional Berhad and/or Pelaburan Hartanah Nasional Berhad; and

(iii) to allow Tun Ahmad Sarji bin Abdul Hamid and Tan Sri Dato’ Dr. Wan Zahid bin Mohd.

Noordin to remain as directors of PNB, the delegate that carry on the fund management function for the fund.


10 Related Party Transactions/Conflict of Interest

10.1 Existing and Potential Related Party Transactions PNB has been appointed as the EIM of AMBDN. AMB is wholly-owned by ASNB, which in turn is wholly-owned by PNB. In view of the above, the appointment of PNB as the EIM is deemed a related party transaction.

10.2 Conflict of Interest AMB and its holding company, ASNB, are both unit trust management companies managing unit trust funds. The investment committee members for all the funds in the AMB Family of Funds managed by AMB comprise the same individuals. In addition to the above, Tun Ahmad Sarji bin Abdul Hamid is also an investment committee member for all the funds managed by ASNB except for Amanah Saham Wawasan 2020. Tan Sri Dato’ Sri Hamad Kama Piah bin Che Othman is also an investment committee member for all the funds managed by ASNB. Tan Sri Dato’ Md. Desa bin Pachi is an investment committee member for five funds managed by ASNB, namely Amanah Saham Nasional, Amanah Saham Nasional 2, Amanah Saham Nasional 3- Imbang, Amanah Saham Gemilang and Amanah Saham 1Malaysia. Previously, the appointment of the investment committee members for all the funds managed by ASNB and AMB had been approved by the SC. In addition, PNB has been appointed as the EIM of AMBDN and PNB Structured Investment Fund and all the funds managed by ASNB. PNB is also managing AMB proprietary funds.

10.3 Policies on Dealing with Conflict of Interest Situations 10.3.1 Policies on Dealing with Conflict of Interest Situations by the Manager The Manager has in place policies and procedures to deal with any conflict of interest situations. In making an investment decision for the Fund, the Manager will not make improper use of its position in managing the Fund to gain, directly or indirectly, any advantage to itself or to cause detriment to the interests of Unit Holders. As at LPD, to the best of the Manager’s knowledge, there has been no occurrence of conflict of interest involving the Manager. Where a conflict or potential conflict of interest is identified, this must be evaluated by the Compliance Department and disclosed to the Chief Executive Officer (“CEO”) of the Manager for the next course of action. Conflict of interest situations involving the CEO will be disclosed to the Board of Directors of the Manager for a decision on the next course of action. Directors or staff who are in advisory positions, such as portfolio managers or staff who have access to information on transactions, are not allowed to engage in dealings on their own account. Investment Committee members who hold substantial shareholdings or directorships in public companies shall refrain from any decision making if the Fund invests in the securities of such companies.


10.3.2 Policies on Dealing with Conflict of Interest Situations by the EIM The EIM has in place policies and procedures to deal with any conflict of interest situations. In making an investment transaction for the Fund, the EIM will not make improper use of its positions in managing the Fund to gain for themselves, directly or indirectly, or to cause detriment to the interests of Unit Holders. As at LPD, to the best of the Manager’s knowledge, there has been no occurrence of conflict of interest involving the EIM.

10.4 Details of AMB’s Directors’ Direct and Indirect Interest in Other Corporations Carrying on a Similar Business

As at the LPD, AMB’s Directors do not have any direct or indirect interest in other corporations carrying on a similar business save for Tun Ahmad Sarji bin Abdul Hamid and Tan Sri Dato’ Sri Hamad Kama Piah bin Che Othman who each hold one subscriber share in Pelaburan Hartanah Nasional Berhad (175967-W) and ASNB respectively but have no beneficial interest in the same.

10.5 Details of AMB’s Substantial Shareholders’ Direct and Indirect Interest in Other Corporations Carrying on a Similar Business

As at the LPD, ASNB, the holding company of AMB does not have any direct or indirect interest in other corporations carrying on a similar business, except for an indirect interest in Pelaburan Hartanah Nasional Berhad, a 70% subsidiary of PNB.

10.6 Declaration of Conflict of Interest PNB and funds managed by PNB have collectively over 50% shareholding in Malayan Banking Berhad (Maybank). Maybank has extended facilities to AMB and has also been appointed as the IUTA, both of which are in the ordinary course of business.


11 Tax Advisor’s Letter

TAXATION ADVISOR’S LETTER IN RESPECT OF THE TAXATION OF THE UNIT TRUST AND THE UNIT HOLDERS

(Prepared for inclusion in this Prospectus)

Date : 18 April 2011 Ernst & Young Tax Consultants Sdn Bhd Level 23A, Menara Milenium Pusat Bandar Damansara 50490 Kuala Lumpur

The Board of Directors Amanah Mutual Berhad 4th Floor, Balai PNB 201-A, Jalan Tun Razak 50400 Kuala Lumpur

Dear Sirs Taxation of the unit trust and unit holders This letter has been prepared for inclusion in this Prospectus in connection with the offer of units in the unit trust known as AMB Dana Nabeel (hereinafter referred to as “the Fund”).

The purpose of this letter is to provide prospective unit holders with an overview of the impact of taxation on the Fund and the unit holders. Taxation of the Fund The taxation of the Fund is subject to the provisions of the Malaysian Income Tax Act, 1967 (“MITA”), particularly Sections 61 and 63B. Under Section 2(7) of the MITA, any reference to interest shall apply, mutatis mutandis, to gains or profits received and expenses incurred, in lieu of interest, in transactions conducted in accordance with the principles of Syariah. The effect of this is that any gains or profits received (hereinafter referred to as “profits”) and expenses incurred, in lieu of interest, in transactions conducted in accordance with the principles of Syariah, will be accorded the same tax treatment as if they were interest. Subject to certain exemptions, the income of the Fund comprising dividends, profits and other investment income derived from or accruing in Malaysia after deducting tax allowable expenses, is subject to Malaysian income tax, which is currently imposed at the rate of 25%.


Tax allowable expenses would comprise expenses falling under Section 33(1) and Section 63B of the MITA. Section 33(1) permits a deduction for expenses that are wholly and exclusively incurred in the production of gross income. In addition, Section 63B allows unit trusts a deduction for a portion of other expenses (referred to as ‘permitted expenses’) not directly related to the production of income, as explained below. “Permitted expenses” refer to the following expenses incurred by the Fund which are not deductible under Section 33(1) of the MITA:

the manager's remuneration,

maintenance of the register of unit holders,

share registration expenses,

secretarial, audit and accounting fees, telephone charges, printing and stationery costs and postage.

These expenses are given a partial deduction under Section 63B of the MITA, based on the following formula:

A x B 4C

Where A is the total of the permitted expenses incurred for that basis period;

B is gross income consisting of dividend1, interest and rent chargeable to tax for that basis period; and C is the aggregate of the gross income consisting of dividend (whether exempt or

not), interest and 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.

Exempt income

The following income of the Fund is exempt from income tax:

• Dividends

Tax exempt dividends received from investments in companies which had previously enjoyed or are currently enjoying certain tax incentives provided under the relevant legislation.

Paragraph 12B, Schedule 6 of MITA states that exempt dividend includes any dividend paid, credited or distributed to any person where the company paying such dividend is not entitled to deduct tax under Section 108 of the Income Tax Act.

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1 Pursuant to section 15 of the Finance Act 2011, with effect from the year assessment 2011, dividend income is deemed to include income distributed by a unit trust which includes distributions from Real Estate Investment Trusts.


• Interest (Profits)

(i) interest from securities or bonds issued or guaranteed by the Government of Malaysia;

(ii) interest from debentures or Islamic securities (other than convertible loan stock) approved by the Securities Commission;

(iii) interest from Bon Simpanan Malaysia issued by Bank Negara Malaysia;

(iv) interest derived from Malaysia and paid or credited by banks or financial institutions licensed under the Banking and Financial Institutions Act 1989 or the Islamic Banking Act 1983;

(v) interest from Islamic securities originating from Malaysia, other than convertible loan stock issued in any currency in Malaysia and approved by Securities Commission or Labuan Offshore Financial Services Authority (LOFSA)2;

(vi) interest received from bonds or securities issued by Pengurusan Danaharta Nasional Berhad; and

(vii) 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)3.

• Discount

Tax exemption is given on discount paid or credited to any unit trust in respect of investments as specified in items (i), (ii) and (iii) above.

Foreign income Dividends, profits and other income derived from sources outside Malaysia and received in Malaysia by a resident unit trust is exempt from Malaysian income tax. However, such income may be subject to tax in the country from which it is derived.

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2 Pursuant to section 4 of the Finance Act 2011, with the effect from 11 February 2010, ‘LOFSA’ refers to Labuan Financial Services Authority (LFSA).

3 MESDAQ was replaced by FTSE Bursa Malaysia ACE with effect from 3 August 2009, therefore any interest derived from bonds (other than convertible loan stock) paid or credited by any company listed on the MESDAQ should still qualify for an exemption up to 2 August 2009. However, from 3 August 2009 and up to the date of this letter, there is no new gazette order issued to exempt interest derived from bonds paid or credited by a company listed in the new FTSE Bursa Malaysia ACE.


Gains from the realisation of investments

Pursuant to Section 61(1) (b) of the MITA, gains from the realisation 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 ("RPGT") 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. Any chargeable gain on the disposal of chargeable assets from 1 January 2010 onwards would be subject to RPGT at the applicable tax rate depending on the holding period. However, under the Real Property Gains Tax (Examption) (No. 2) Order 2009, Funds can enjoy a full exemption from RPGT on the disposal of chargeable assets held more than 5 years and an effective tax rate of 5% for all disposal of chargeable assets which are held for 5 years or less.

Tax credit

Tax deducted at source from Malaysian dividends received by the Fund will be available for set-off either wholly or partly against the tax liability of the Fund. Should the tax deducted at source exceed the tax liability of the Fund, the excess is refundable to the Fund.4

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 Fund broadly falls under the following categories:

1. taxable distributions; and

2. non-taxable and exempt distributions.

In addition, unit holders may also realise a gain from the sale of units.

The tax implications of each of the above categories are explained below:

1. Taxable distributions

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 holder will be taxed on the grossed up amount.

Such distributions carry a tax credit, which will be available for set-off against any Malaysian income tax payable by the unit holder. Should the tax deducted at source exceed the tax liability of the unit holder, the excess is refundable to the unit holder.

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4 Pursuant to Section 51 of the Finance Act 2007, a person is not entitled for a set-off if the shares are held for less than 90 days or the dividend is not derived from ordinary shares. This prohibition is not applicable for shares in a company listed on the Bursa Malaysia. Further, Section 50 of Finance Act 2009 indicates that a person is not entitled to a set-off if the dividend paid to that person is not in cash.


Distributions received by a non-resident unit holder from income which has been taxed at source at 25%, will not be subject to any further income tax in Malaysia.

Please refer to the paragraph below for the income tax rates applicable to the grossed up distributions.

2. Non-taxable and exempt distributions

Tax exempt distributions made out of gains from the realisation of investments and other exempt income earned by the Fund will not be subject to Malaysian tax in the hands of the unit holders.

Rates of tax

The Malaysian income tax chargeable on the unit holders depends on their tax residence status and whether they are individuals, corporations or trust bodies. The income tax rates charged are as follows:

Unit holders Malaysian income tax rates

Malaysian tax resident:

• Individual and non-corporate unit holders (such as co-operatives, associations and societies)

• Trust bodies

• Progressive tax rates ranging from 0% to 26%

• 25%

• Corporate unit holders

(i) A company with paid up capital in respect of ordinary shares of not more than RM2.5 million (at the beginning of the basis period for the year of assessment)

(ii) Companies other than (i) above

• For every first RM500,000 of chargeable income @ 20%5

• Chargeable income in excess of RM500,000 @ 25%

• 25%

------------------------------------------------------------ 5 A company would not be eligible for the 20% tax rate on the first RM500,000 of chargeable income if:-

a) more than 50% of the paid up capital in respect of the ordinary shares of the company is directly or indirectly owned by a related company which has a paid up capital in respect of ordinary shares of more than RM2.5 million at the beginning of a basis period for a year of assessment;

b) the company owns directly or indirectly more than 50% of the paid up capital in respect of the ordinary shares of a related company which has a paid up capital in respect of ordinary shares of more than RM2.5 million at the beginning of a basis period for a year of assessment;

c) more than 50% of the paid up capital in respect of the ordinary shares of the company and a related company which has a paid up capital in respect of ordinary shares of more than RM2.5 million at the beginning of a basis period for a year of assessment is directly or indirectly owned by another company.


Unit holders Malaysian income tax rates

Non-Malaysian tax resident (Note): • Individual and non-corporate unit

holders • Corporate unit holders and trust bodies

• 26%

• 25%

Note: 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. Gains from sale of units Gains arising from the realisation of investments will not be subject to income tax in the hands of unit holders unless they are insurance companies, financial institutions or traders/ dealers in securities.

Unit splits and reinvestment of distributions

Unit holders may also receive new units as a result of unit splits or may choose to reinvest their distributions. The income tax implications of these are as follows:

• Unit splits – new units issued by the Fund pursuant to a unit split will not be subject to income tax in the hands of the unit holders.

• Reinvestment of distributions – unit holders may choose to reinvest their income distribution in new units by informing the Manager. In this event, the unit holder will be deemed to have received the distribution and reinvested it with the Fund.

**********************************************


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 and the related interpretation and practice thereof, all of which are subject to change, possibly on a retrospective basis. We have not been retained (unless specifically instructed hereafter), nor are we obligated to monitor or update the statements for future conditions that may affect these statements.

The statements made in this letter are not intended to be a complete analysis of the tax consequences relating to an investor in the Fund. As the particular circumstances of each investor may differ, we recommend that investors obtain independent advice on the tax issues associated with an investment in the Fund.

Yours faithfully Ernst & Young Tax Consultants Sdn Bhd Noor Rida Hamzah Partner Ernst & Young Tax Consultants Sdn. Bhd. has given its consent to the inclusion of the Taxation Advisor’s Letter in the form and context in which it appears in this Prospectus and has not withdrawn such consent prior to the delivery of a copy of this Prospectus for approval.


12 Consents

The consents of the Trustee, the Principal Banker, the Solicitors, the EIM, the Auditors and the Tax Advisor for the inclusion of their names in the form and context in which such names appear in this Prospectus have been given before the issue of this Prospectus and have not been subsequently withdrawn. Ernst & Young Tax Consultants Sdn Bhd has given its written consents for the inclusion of their report as Taxation Advisor in the form and context in which they appear in this Prospectus and has not withdrawn such consents prior to the lodgement of a copy of this Prospectus for registration.


13 Documents Available for Inspection

For a period of not less than 12 months from the date of issuance of this Prospectus, the following documents or copies thereof, where applicable, may be inspected, at the principal office of the Manager and business office of the Trustee, without charge: -

(i) The Deed dated 26 April 2011;

(ii) The Investment Management Agreement dated 26 April 2011;

(iii) Tax Advisor’s letter dated 18 April 2011, referred to in the Prospectus;

(iv) The audited financial statements of the Manager for the financial year ended 31 December 2010 and the last three (3) financial years ended 31 December 2009, 31 December 2008 and 31 December 2007 (where applicable);

(v) All consents given by experts or persons whose statements appear in the Prospectus; and

(vi) Relevant cause papers for the material litigation disclosed in section 7.5 of this Prospectus.


14 Rights and Liabilities of a Unit Holder

14.1 Rights of a Unit Holder As a Unit Holder of the Fund, and subject to the provisions of the Deed, you have the right : • to participate in any increase in the NAV of the Fund;

• to call for, attend and vote at Unit Holders’ meetings;

• to vote for the removal of the Trustee or the Manager through a special resolution;

• to exercise the Cooling-off Right (only for qualified investors);

• to receive annual and interim reports on the Fund; and

• to exercise such other rights and privileges as provided for in the Deed. However, you would not have the right to require the transfer to you of any of the investments of the Fund. Neither would you have the right to interfere with or to question the exercise by the Trustee (and us on the Trustee’s behalf) of the rights of the Trustee as trustee of the investments of the Fund. 14.2 Liabilities of a Unit Holder

No Unit Holder is liable for any amount in excess of the purchase price paid for the Units as determined pursuant to the Deed at the time the Units were purchased; and

Unit Holders 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 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 NAV of the Fund, and any right of indemnity of the Trustee and/or the Manager shall be limited to recourse to the Fund only.


15 Communications with Unit Holders

The Manager is dedicated to providing investors with high quality information services to help investors make well-informed investment decisions. We focus on individual investors with a lasting commitment to realisation of their long-term investment goals by providing a value-added contribution to the management of their personal wealth.

15.1 Customer Information Service You can seek assistance on any issue relating to the Fund on Business Days by contacting:

• AMB Client Services : (603)2034 0800 from 9.00 am to 6.00 pm

• Distribution Branches from 9.00 am to 4.30 pm

Alternatively, you may also:

• Email us at [email protected]

• Visit AMB’s website at www.ambmutual.com.my

Unit Price AMB publishes the NAV per Unit of the Fund in at least one national Bahasa Malaysia and one national English newspaper daily. Unit Holders can also view the NAV per Unit of the Fund at our website. The Manager has taken necessary procedures to ensure accuracy of information of pricing to be published in the news papers. However, the Manager shall not be held liable for any errors or omission in the pricing information published in the newspaper. 15.2 Regular Reports and Statements on your Investment There are four main types of information that you will receive about your investment. It is advisable that you read these documents carefully. 1. Transaction Statement

When you make your investment in the Fund you will receive a copy of the application form showing details of the amount you have invested in the Fund. Subsequently, the Manager will forward an investment confirmation statement to all Unit Holders to confirm the number of Units that the Unit Holder has invested within 14 days from the receipt of the application forms by the Manager. In addition, for any other transaction, the investment statement will be forwarded to the Unit Holder within stipulated time.



2. Interim and Annual Reports

AMB publishes strategies and performance of the Fund twice a year in interim and annual reports and distributes to Unit Holders such reports within two months from the end of the half-year and financial year of the Fund respectively. AMB shall submit a copy of the interim report and lodge the annual report with the SC.

3. Interim and Annual Investment Statement

The Manager will forward to the unitholder the Interim and Annual Investment Statement showing all transactions performed and balance of the units within two months from the end of the half year and financial year of the Fund respectively.

4. Statement of Income Distribution

Unit Holders will receive the income distribution statement detailing the nature of the amount of distribution by AMBDN, if any.

15.3 Register of Unit Holders The principal register of Unit Holders will be kept at the principal office of the Manager at 34th Floor, Menara PNB, 201-A, Jalan Tun Razak, 50400 Kuala Lumpur and will be available for inspection by Unit Holders from 9.00 a.m. to 6.00 p.m., on Business Days. 15.4 Policies Adopted by AMB to Avoid Money Laundering Activities The following are policies adopted by AMB to avoid money laundering activities:

i. the Senior Compliance Officer of AMB has been appointed as the Designated Reporting Officer of AMB for suspicious transactions and will ensure compliance with the Anti-Money Laundering and Anti-Terrorism Financing Act 2001 Act;

ii. RM300,000 per transaction has been set as the threshold level for suspicious transactions in

any of the unit trust fund managed by AMB; and

iii. the Manager reserves the right to request such information as is necessary to verify the source of the payment. The Manager may refuse to accept the application and the subscription monies if an applicant of Units delays in producing or fails to produce any information required for the purposes of verification of identity or source of funds, and in the event the Manager shall return the application monies (without interest and at the expense of the applicant) by telegraphic transfer to the account from which the monies were originally sent/by way of a cheque to the applicant’s last known address on the records of the Manager.


15.5 Material Contracts Saved as disclosed below, there are no other material contracts (including contracts not reduced into writing), not being contracts entered into in the ordinary course of business, which have been entered into that relates to the Fund within two years preceding the date of this Prospectus: (a) The Deed dated 26 April 2011, constituting AMBDN, entered into between AMB and ART, for the

benefit of the Unit Holders; and (b) The Investment Management Agreement in relation to AMBDN setting out the terms and

conditions upon which the EIM has been appointed and has agreed to act as the EIM of AMBDN entered into between AMB and EIM on 26 April 2011.

(c) The Distribution Agreement (DA) in relation to AMBDN setting out the terms and conditions

upon which the Institutional Unit Trust Agents (IUTAs) have been appointed and have agreed to act as the IUTAs of AMBDN entered into between AMB and the IUTAs are as follows:

IUTAs Date of Agreement

i. Apex Investment Services Berhad 8 February 2011

ii. Bank Kerjasama Rakyat Malaysia Berhad 29 March 2010

iii. Amanah Saham Nasional Berhad 22 June 2009

iv. Malayan Banking Berhad - Supplemental DA - Second Supplemental DA

9 May 2008

9 March 2010


16 List of Distributors’ Offices

Institutional Unit Trust Agents (IUTAs) Appointed By The Manager: MALAYAN BANKING BERHAD 1st Floor, Menara Maybank

100 Jalan Tun Perak 50050

Kuala Lumpur.

Maybank Group Call Centre : 1-300-88-6688

Website : www.maybank2u.com.my

As at LPD, the bank has 354 branches.

BANK KERJASAMA RAKYAT MALAYSIA BERHAD (Only at the headquarters) Financial Planning Services

15th Floor, Bangunan Perkim

No. 150 Jalan Ipoh

51200 Kuala Lumpur

Tel : (603)-40272538

Tele-Rakyat : 1-300-88-12265

AMANAH SAHAM NASIONAL BERHAD Jabatan Perhubungan Pelanggan & Ejen UG Balai PNB

201-A, Jalan Tun Razak

50400 Kuala Lumpur

Hotline : (603)-2057 3000 / 03-20573111

Fax : (603)-2050 5220

Website: www.asnb.com.my

Email : [email protected]

APEX INVESTMENT SERVICES BERHAD Suite 10-A3, 10A Floor Grand Seasons Avenue 72 Jalan Pahang 53000 Kuala Lumpur Tel : (603)-2693 2789 Fax : (603)-2692 6546

Any other appointed IUTAs from time to time. LIST OF OFFICES ASNB OFFICES KUALA LUMPUR* ASNB Main Counter First Floor, Balai PNB 201-A Jalan Tun Razak Tel : (603)-2050 5100 Fax: (603)-2161 8852

SELANGOR* Amanah Saham Nasional Berhad Lot 2-1 & 2-2 Pusat Dagangan UMNO Shah Alam Persiaran Damai Seksyen 11 40000 Shah Alam Selangor Tel : (603)-5512 1366 / 5510 3155 Fax: (603)-5513 7155

http://www.maybank2u.com.my/

http://www.asnb.com.my/

mailto:[email protected]


PUTRAJAYA* Amanah Saham Nasional Berhad Lot 27 Kompleks Perbadanan Putrajaya Persiaran Perdana, Presint 3 62675 Putrajaya Tel : (603)-8890 4880 / 4885 Fax: (603)-8890 4890

KEDAH* Amanah Saham Nasional Berhad 27 Kompleks Shahab Perdana Jalan Sultanah Sambungan 05200 Alor Star Kedah Tel: (604)-731 0770 / 731 1012 / 733 4603 Fax: (604)-731 4140

PERLIS* Amanah Saham Nasional Berhad Lot 7 Jalan Indera Kayangan 01000 Kangar Perlis Tel: (604)-977 8332 / 978 1111 Fax: (604)-976 0800

JOHOR* Amanah Saham Nasional Berhad 49 Bangunan Tabung Haji Jalan Segget 80000 Johor Bahru Johor Tel: (607)-224 0077 / 227 2277 Fax: (607)-223 2533

NEGERI SEMBILAN* Amanah saham Nasional Berhad 36 Jalan Tunku Hassan 70000 Seremban Negeri Sembilan Tel: (606)-762 6239 /763 8546 / 761 8451 Fax: (606)-763 3384

TERENGGANU* Amanah Saham Nasional Berhd No 15 Jalan Batas Batu 20300 Kuala Terengganu Terengganu Tel: (609)-630 1500 / 630 1501 Fax: (609)-630 1506

PAHANG* Amanah Saham Nasional Berhad 71 & 73 Tingkat Bawah Jalan Tun Ismail 25000 Kuantan Pahang Tel: (609)-517 8340 / 517 8341 Fax: (609)-513 6694

MELAKA* Amanah Saham Nasional Berhad No 11 & 13 Kompleks Perniagaan Al-Azim Jalan KPAA 1, Bukit Baru 75150 Melaka Tel: (606)-282 7361 / 284 0690 Fax: (606)-283 9940

PULAU PINANG Amanah Saham Nasional Berhad 2777 Jalan Chain Ferry Taman Inderawasih 13600 Perai Pulau Pinang Tel: (604)-399 4378 / 399 4381 Fax: (604)-399 4404

KELANTAN* Amanah Saham Nasional Berhad 2983-V Jalan Parit Dalam 15000 Kota Bharu Kelantan Tel: (609)-741 9900 / 741 9909 Fax: (609)-744 6663

Note: *ASNB offices which provide full range of services including cash transaction.


PERAK* Amanah Saham Nasional Berhad No 8 & 8A Persiaran Greentown 1 Greentown Business Centre 30450 Ipoh Perak Tel: (605)-255 5500 / 255 5505 Fax: (605)-255 5506

SARAWAK Kuching* Amanah Saham Nasional Berhad Tingkat Bawah & 1 Lot 335 Seksyen 9 KTLD Jalan Rubber 93400 Kuching Sarawak Tel: (6082)-250 389 / 410 210 Fax: (6082)-250 313

SABAH Kota Kinabalu* Amanah Saham Nasional Berhad Lot 55 Tkt Bawah & 1, Blok G Asiacity Fasa 1B Peti Surat 12149 88000 Kota Kinabalu Sabah Tel: (6088)-257 725 / 241 011 Fax: (6088)-218 814

Miri* Amanah Saham Nasional Berhad Lot 886 & 887 Block 9 MCLD Miri Waterfront Commercial Centre 98000 Miri Sarawak

Tel: (6085)-423 746 / 419 984 Fax: (6085)-423 384

Tawau* Amanah Saham Nasional Berhad TB 4287 & TB 4280 Tkt Bawah & 1, Town Ext II Jalan Masjid Kompleks Fajar 91000 Tawau Sabah Tel: (6089)-779 389 / 779 390 / 779 391 Fax: (6089)-776 600

Sri Aman* Amanah Saham Nasional Berhad 4C Ground Floor Lot 832 Jalan Sabu 95000 Sri Aman Sarawak Tel: (6083)-321 742 Fax: (6083)-323 233

Sandakan* Amanah Saham Nasional Berhad Lot 15 Tingkat Bawah Bandar Pasaraya Fasa 1 90000 Sandakan Sabah Tel: (6089)-210 486 / 223 530 Fax: (6089)-210 597

Sibu* Amanah Saham Nasional Berhad Lot 1007 & 1008 Jalan Kampung Nyabor 96000 Sibu Sarawak Tel: (6084)-314 967 Fax: (6084)-322 497

Note: *ASNB offices which provide full range of services including cash transaction.

5) Your UTC may represent a company that uses a nominee system and your rights as a unit holder may be limited if you invest in unit trust funds through it. If his or her company uses a nominee system, ask if your rights as a unit holder will be limited in any way.

You Should Also Know a) Only registered UTCs are allowed to sell unit

trust funds. Your UTC should show you a valid authorisation card confirming that he/she is registered with the Federation of Investment Managers Malaysia (FIMM).

b) A unit trust fund may only be offered to the

public if it is approved by the Securities Commission Malaysia (SC). Go to www.sc.com.my for a list of unit trust funds currently available in the market or call 603-6204 8777 for assistance.

c) When you buy into a unit trust fund, you should

be given the latest copy of prospectus for free. Read the prospectus carefully; understand its contents before investing.

d) You may have to pay direct and indirect fees and

possibly other charges too. Ask about applicable fees.

e) If you have concerns or complaints about any

unit trust fund, you can contact FIMM at 603-2092 3800 (www.fimm.com.my) or the Investor Affairs & Complaints Department of the SC at 603-6204 8999.

f) You should not make payment in cash to the UTC or issue a cheque in the name of UTC.

Investor’s Confirmation I/We confirm that the UTC has explained all the points overleaf to me/us. 1) Applicant Signature : _______________________________ Name : _______________________________ NRIC/Identification Number/Passport No.: ________________________________________ Date :_______________________________ 2) Joint Applicant (If applicable) Signature :_______________________________ Name :_______________________________ NRIC/Identification Number/Passport No.: _______________________________________ Date :_______________________________ Unit Trust Consultant’s Declaration I declare that I have explained the points overleaf and the investor(s) understand(s) them. Signature :_______________________________ Name :_______________________________ NRIC/Identification Number/Passport No.: ________________________________________ Registered as UTC of UTMC/IUTA/CUTA^: ________________________________________ ^Delete where not applicable.

Do You Know? 1) You can buy unit trusts either through a

Unit Trust Consultant (UTC), Institutional Unit Trust Advisers (IUTA), Corporate Unit Trust Advisers (CUTA) or directly from Unit Trust Management Company (UTMC) or online, but each has different sales charge and level of service. Choose the one that best suits your needs.

2) If you redeem your units in a unit trust

fund and then purchase units in another, you will probably have to pay a sales charge. However, if you switch from one fund to another managed by the same UTMC, it is likely that you may not have to pay any sales charge. Ask about switching before you redeem.

3) Different types of unit trust funds carry

different levels of risk. Some are higher in risk than others. Ask about the risks before investing in a fund. Make sure you know what your fund is investing in.

4) If you are a first time investor in a UTMC,

you may be eligible for cooling-off rights, whereby you can change your mind within six (6) business days after investing and withdraw your unit trust investment. Ask about your eligibility for cooling-off.

Yes(√)/ No(X)

Note: This form is required for investments in a new fund by INDIVIDUAL investors (excluding additional investment/top ups), including switching-in to new funds after 15th February 2010.

PRE-INVESTMENT FORM

ATTENTION UNIT TRUST INVESTORS IMPORTANT! Your Unit Trust Consultant (UTC) is required to explain all of the following to you

Signing this form does not preclude you from taking action against relevant party/parties under any circumstances.