AmInvestment launched a new fund – the AmStaples, which allow investors to particpate in a strategy linked to food staples.

Initial offer period: 17/12/2008-30/1/2009(45 Days)

Category of fund: Shariah-based Structured Product Fund
Type of fund: Income
Manager: AmInvestment Services Bhd.
Investment Manager: AmInvestment Management Sdn. Bhd.
Trustee: Amanah Raya Trustees Berhad

 

 

Amstaples Fund, AmInvestment
Amstaples Fund, AmInvestment

 

 

Objective:
The objective of AmStaples is to allow investors to participate in a strategy linked to food staples. The Fund aims to pay a contractual fixed income distribution and potential additional return (if any).

Investment Strategy:
AmStaples will invest at least 95% of the NAV of the Fund in a 33-month tenure Certificates denominated in AUD which, upon maturity will reach 100% of the Notional Amount.
The Fund seeks to achieve its objective by investing in a 33-month tenure Certificates denominated in AUD. The Certificates are arranged by CGML and provide a contracted fixed income distribution on month 12 of X% of the AUD Notional Amount* and a minimum of Y% of the AUD Notional Amount* payable at the end of month 12 and month 33 respectively. In addition the Fund aims to provide potential additional income at maturity through an exposure to 4 underlying assets linked to a strategy on food staples. The Certificates are scheduled to expire at 100% of the Notional Amount in AUD and potential additional income of the Fund is linked to the performance of 4 underlying assets (currently identified as Kraft, Nestle, Corn and Soybean)**.

Note:
* The contracted fixed income distribution is subject to prevailing interest rate conditions on the Commencement Date of the Fund. Unitholders will be informed on the actual contracted fixed income distribution via written notice or through our website after the Commencement Date.

** The underlying assets will only be confirmed upon the Commencement Date of the Fund and subject to change. No change to the composition of the underlying assets will be made by the Manager after the Commencement Date. Unitholders will be informed on the actual composition of the underlying assets via written notice or through our website after the Commencement Date.

Asset Allocation:

At least 95% in Certificates arranged by CGML.

Up to 5% in cash and other Shariah-compliant authorised investments.

Fund Currency of Denomination: Ringgit Malaysia
Holdings Currency of Denomination: Australian Dollars (Certificates) and Malaysian Ringgit (cash)

Benchmark:

Maybank 12-month GIA rate obtainable from www.maybank2u.com.my

Note: The above benchmark may be reviewed to reflect any material changes to the Fund asset allocation range as permitted by the prevailing regulations.

Principal Risk:

  • Credit risk
  • Industry specific risk
  • Market risk
  • Currency risk
  • Shariah non-compliance risk

Investor Profile
This Fund is suitable for investors who:
1. Seek income distribution and potential additional income from a fund;
2. Seek to benefit from participation in a strategy linked to food staples

Approved Fund Size (Units): 100 million units
Unit Price (at launch): RM1.00 per unit

Fees and Expenses

Upfront/Entry Fee: Up to 3.25% of NAV
Exit Fee:
Early redemption is allowed at a penalty fee of:-
a. Up to 0.5% of the NAV per unit of the Fund

For withdrawal request made anytime before the end of the 33rd month from the Commencement Date.
b. Nil For withdrawal made on Maturity Date

All exit penalty fee charged will placed back to the Fund. This is to safeguard the remaining Unitholders whose intention is to stay with the Fund until maturity.

Annual Management Fee: Nil
Annual Trustee Fee:
0.08% p.a. of the NAV of the Fund, subject to a minimum fee of RM18,000 p.a

Fund Expenses:
A list of the fund expenses directly related to the Fund are as follows:

  • Audit fees
  • Tax agents fees
  • Printing and stationery
  • Bank charges
  • Investment Committee fee for independent members
  • Lodgement/Delivery fee for fund reports
  • Commission paid to the brokers (if any)
  • Other expenses as permitted by the Deed

Transaction Details

Minimum Initial Investment:
RM5,000 or such amounts as the Manager may from time to time decide

Minimum Additional Investment:
RM5,000 or such amounts as the Manager may from time to time decide

Minimum Holding/Balance:
RM5,000 or such amounts as the Manager may from time to time decide

Minimum repurchase amount:
RM5,000 or such amounts as the Manager may from time to time decide

Distribution Policy

Income Distribution Policy:
The Fund receives a contractual fixed income distribution of X% of the AUD
Notional Amount* at the end of month 12 and a minimum of Y% of the AUD
Notional Amount* at the end of month 33.The amount received by the Fund will be converted from AUD to RM for payment to investors at the prevailing exchange rates.

Note: * The contracted fixed income distribution is subject to the prevailing interest rate conditions on the Commencement Date of the Fund. Unitholders will be informed on the actual contracted fixed income distribution via written notice or through our website after the Commencement Date.

Proceeds at maturity:
Principle (subject to currency fluctuations) will be returned to the investor at the maturity of the Fund

DISCLAIMER:
The information published should be used for information purposes only and is not meant to be a solicitation for sales. It is subject to change without notice and should not be taken as advice. Please be advised that units of the Fund are currently not available for subscription. You may request to be notified if you have further interest in the Fund. The Prospectus will be available at AmInvesmtnet office and all authorized agents/distributors of AmInvestment Services Berhad. Please read and understand the contents of the Prospectus before investing. The prices of units and distributions made, if any, may go down as well as up. Also consider the fees and charges involved before investing. Units are issued upon receipt of a duly completed application form referred to in and accompanying the prospectus.

We recommend that you read and understand the contents of AmMutual Prospectus for AmStaples dated 17 December 2008 that is registered with the Securities Commission, who takes no responsibility to its contents, before investing. Units will be issued upon receipt of completed application form accompanying the Prospectus and subject to terms and conditions therein. For copies of the Prospectus, visit the nearest representative office. Unit prices and income distribution, if any, may rise or fall. Past performance of a fund is not indicative of future performance. Please consider the fees and charges involved before investing. AmInvestment Services Bhd does not guarantee any returns on the investments.


The Fund is not guaranteed and subject to investment risk. The proceeds at maturity of the Fund only applies to unitholders who hold their investment until the maturity date of the Fund. Any redemption before the Maturity Date would be based on the NAV of the Fund on that day and would be subject to an exit penalty fee (thus the protection does not apply in this case). Investors are advised to read and understand the contents of the Prospectus before investing.

Should you need more clarification, please do not hesitate to call AmInvestment at 03-27830300 or 03-27830200 (Customer Service)


KCLau
KCLau

Personal finance author and trainer

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