Responsibility Statement - eUnitTrust.com.my · 2 Responsibility Statement ^This Master Prospectus has been reviewed and approved by the directors of Affin Hwang Asset Management

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Responsibility Statement “This Master Prospectus has been reviewed and approved by the directors of Affin Hwang Asset Management Berhad and they collectively and individually accept full responsibility for the accuracy of the information. Having made all reasonable enquiries, they confirm to the best of their knowledge and belief, that there are no false or misleading statements, or omission of other facts which would make any statement in the Master Prospectus false or misleading” Statement of Disclaimer “The Securities Commission Malaysia has authorised the Funds and a copy of this Master Prospectus has been registered with the Securities Commission Malaysia. “

“The authorisation of the Fund, and registration of this Master Prospectus, should not be taken to indicate that Securities Commission Malaysia recommends the said Fund or assumes responsibility for the correctness of any statement made, opinion expressed or report contained in this Master Prospectus.”

“The Securities Commission Malaysia is not liable for any non-disclosure on the part of Affin Hwang Asset Management Berhad, the management company responsible for the said Fund and takes no responsibility for the contents in this Master Prospectus. The Securities Commission Malaysia makes no representation on the accuracy or completeness of this Prospectus, and expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of its contents.”

INVESTORS SHOULD RELY ON THEIR OWN EVALUATION TO ASSESS THE MERITS AND RISKS OF THE INVESTMENT. IF INVESTORS ARE UNABLE TO MAKE THEIR OWN EVALUATION, THEY ARE ADVISED TO CONSULT PROFESSIONAL ADVISERS. Additional Statement No Units will be issued or sold based on this Master Prospectus later than 30 March 2017. Investors should note that they may seek recourse under the Capital Markets and Services Act 2007 for breaches of securities laws and regulations including any statement in the Master Prospectus that is false, misleading, or from which there is a material omission; or for any misleading or deceptive act in relation to the Master Prospectus or the conduct of any other person in relation to the Funds. This Master Prospectus is not intended to and will not be issued and distributed in any country or jurisdiction other than in Malaysia (“Foreign Jurisdiction”). Consequently, no representation has been and will be made as to its compliance with the laws of any Foreign Jurisdiction. Accordingly, no issue or sale of Units of the Funds to which this Master Prospectus relates may be made in any Foreign Jurisdiction or under any circumstances where such action is unauthorised.

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Message from the Managing Director Welcome to our suite of conventional cash management solution unit trust funds, Affin Hwang Select Cash Fund (“SCashF”) and Affin Hwang Enhanced Deposit Fund (“EDF”). Both Funds are money market funds that aim to provide Investors with a regular income stream and high level of liquidity to meet cash flow requirement while maintaining capital preservation. These Funds are targeted at low risk Investors who are generally conservative, risk averse and prefer a short-term investment horizon. Your investment in these Funds are ideal as part of your cash management solution where you may decide your short and medium-term cash requirements without forgoing interest earned. In addition, these Funds give you the potential to generate better returns compared to traditional fixed deposits and current accounts. To achieve their objectives, these Funds will invest 90% to 100% of the NAV of these Funds in short-term fixed income instruments with a maturity period of not more than 365 days while up to 10% of the NAV of these Funds are to be invested in debentures, money market instruments and deposits with a remaining maturity period of more than 365 days but fewer than 732 days. There are fees and charges involved and you are advised to consider the following fees and charges payable before investing in these Funds: • An annual management fee of up to 0.50% per annum of the NAV of these Funds respectively. • A trustee fee of up to 0.05% per annum (including local custodian fee but excluding foreign sub-custodian

fee, if any) of the NAV of these Funds respectively. You should be aware that there are risks associated with investing in any unit trust funds. These Funds are exposed to market risk, credit/default risk, interest rate or price risk and liquidity risk; additionally, as SCashF also invests in foreign countries, SCashF is also exposed to currency risk (which we intend to fully mitigate by completely hedging off any non-RM currency back to RM), country risk and derivative risk. For further details on these risk factors, kindly refer to Section 4 of this Master Prospectus. We hope you will find this Master Prospectus informative, easy to read and useful in helping you to make smart investment decisions. If you have any queries about the information in this Master Prospectus or would like to know more about investing in these Funds, please feel free to contact our Customer Care personnel at toll free number 1-800-88-7080 or email us at [email protected]. Alternatively, you may contact any of our sales offices or distribution points, the list of which may be found at Section 18 of this Master Prospectus. We look forward to being of service to you. Best wishes,

Teng Chee Wai Managing Director

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TABLE OF CONTENTS SECTION PAGE

1. CORPORATE DIRECTORY ................................................................................................................ 7 2. GLOSSARY .................................................................................................................................... 8 3. KEY DATA ................................................................................................................................... 11 4. RISK FACTORS ............................................................................................................................. 15 4.1 General Risks ............................................................................................................................. 15 4.2 Specific Risks .............................................................................................................................. 16 4.3 Risk Management ....................................................................................................................... 17 5. FUND DETAILS ............................................................................................................................ 19 5.1 Fund Specifics ............................................................................................................................. 19 A. Affin Hwang Select Cash Fund (SCashF) ........................................................................................ 19 B. Affin Hwang Enhanced Deposit Fund (EDF) ................................................................................... 20 5.2 Investment Strategy & Investment Restrictions and Limits ............................................................. 21 5.2.1 Investment Strategy for SCashF & EDF .......................................................................................... 21 5.2.2 Investment Restrictions and Limits for SCashF & EDF ..................................................................... 21 6. ADDITIONAL INFORMATION IN RELATION TO THE FUNDS .............................................................. 23 6.1 Valuation of Assets ..................................................................................................................... 23 6.2 Valuation Point for the Funds ...................................................................................................... 23 6.3 Policy on Gearing and Minimum Liquid Assets Requirements ......................................................... 24 6.4 Distribution Policy & Reinvestment of Distribution Policy ............................................................... 24 6.5 Termination of the Funds ............................................................................................................ 25 6.6 EPF Investments ......................................................................................................................... 25 7. HISTORICAL PERFORMANCE OF THE FUNDS .................................................................................. 26 7.1 Affin Hwang Select Cash Fund (SCashF) ........................................................................................ 26 7.1.1 Historical Fund Performance (1 December 2013 – 30 November 2014) ........................................... 26 7.1.2 Historical Financial Highlights ...................................................................................................... 28 7.2 Affin Hwang Enhanced Deposit Fund (EDF) ................................................................................... 29 7.2.1 Historical Fund Performance (1 May 2013 – 30 Apr 2014) .............................................................. 29 7.2.2 Historical Financial Highlights ...................................................................................................... 31 8 FEES, CHARGES AND EXPENSES .................................................................................................... 32 8.1 Sales Charge ............................................................................................................................... 32 8.2 Repurchase Charge ..................................................................................................................... 32 8.3 Switching Fee ............................................................................................................................. 32 8.4 Transfer Fee ............................................................................................................................... 32 8.5 Management Fee ........................................................................................................................ 32 8.6 Trustee Fee ................................................................................................................................ 32 8.7 Fund Expenses ............................................................................................................................ 33

8.8 Goods and Services Tax………………………………………………………………………………………………………………………33 8.9 Policy on Stockbroking Rebates and Soft Commissions ........................................................................ 33 9. SALE AND PURCHASE OF UNITS.................................................................................................... 34 9.1 Computation of NAV and NAV per Unit ........................................................................................ 34 9.2 Pricing of Units ........................................................................................................................... 35 9.3 Sale of Units ............................................................................................................................... 36 9.4 Repurchase of Units .................................................................................................................... 37 9.5 Payment of Repurchase Proceeds ................................................................................................ 37 9.6 Repurchase Frequency and Minimum Units Repurchased .............................................................. 38 9.7 Cooling-off Right and Cooling-off Period ....................................................................................... 38 9.8 Switching Facility ........................................................................................................................ 39

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9.9 Transfer Facility .......................................................................................................................... 39

9.10 Methods of Transaction……………………………………………………………………………………………………………………..39 9.11 Where to Purchase and Repurchase Units .................................................................................... 40 9.12 Unclaimed Monies ...................................................................................................................... 40 9.13 Anti-Money Laundering Policies and Procedures ........................................................................... 40 10. SALIENT TERMS OF THE DEEDS .................................................................................................... 41 10.1 Rights and Liabilities of Unit Holders ............................................................................................ 41 10.1.1 Rights of Unit Holders ................................................................................................................. 41 10.1.2 Liabilities of Unit Holders ............................................................................................................. 41 10.2 Provisions regarding Unit Holders’ Meetings ................................................................................. 41 10.2.1 Quorum required for convening a Unit Holders’ Meeting ............................................................... 41 10.2.2 Unit Holders’ Meeting convened by the Unit Holders .................................................................... 41 10.2.3 Unit Holders’ Meeting convened by the Manager.......................................................................... 42

10.2.4 Unit Holders Meeting convened by the Trustee…………………………………………………………………………………42 10.3 Termination of the Funds ............................................................................................................ 43 10.3.1 Circumstances that may lead to the termination of the Funds ........................................................ 43 10.3.2 Procedure for the termination of the Funds .................................................................................. 43 10.4 The maximum fees and charges that may be imposed by the Manager and the steps to be taken by the

Manager to increase such fees and charges .................................................................................. 43 10.4.1 Maximum rate of Indirect Fees permitted by the Deeds ................................................................. 43 10.4.2 Maximum Rate of Direct Charges permitted by the Deeds ............................................................. 44 10.4.3 Procedures to be taken to increase the Direct Charges and Indirect Fees from the current amount

stipulated by the Master Prospectus ............................................................................................ 44 10.4.4 Procedures to be taken to increase the Direct Charges and Indirect Fees from the current amount

stipulated by the Deeds ............................................................................................................... 45 10.4.5 Other Expenses permitted under the Deeds .................................................................................. 45 10.5 Retirement of the Manager ......................................................................................................... 46 10.6 Duty of the Manager to replace the Trustee ................................................................................. 46 10.7 Retirement of the Trustee ........................................................................................................... 46 10.8 Replacement of the Manager ...................................................................................................... 47 11. CLIENT COMMUNICATION ........................................................................................................... 48 12. THE MANAGER ........................................................................................................................... 50 12.1 Background Information ............................................................................................................. 50 12.2 Roles, Duties and Responsibilities of the Manager ......................................................................... 50 12.3 Financial Position ........................................................................................................................ 50 12.4 Role of Directors ......................................................................................................................... 50 12.4.1 Board of Directors....................................................................................................................... 51 12.5 Role of the Investment Committee ............................................................................................... 51 12.5.1 The Investment Committee Members .......................................................................................... 51 12.6 The Team ................................................................................................................................... 52 12.6.1 The Investment Team.................................................................................................................. 52 12.6.2 Key Personnel of the Management Team ..................................................................................... 53 12.7 Manager’s Delegate .................................................................................................................... 54 12.8 The Manager’s Disclosure on Related Party Transactions and Possible Conflicts of Interest .............. 55 12.8.1 Related Party Transactions .......................................................................................................... 55 12.8.2 Conflicts of Interest ..................................................................................................................... 55 12.9 Policy on Dealing with Conflicts of Interest ................................................................................... 56 12.10 Material Litigation ...................................................................................................................... 56 13. THE TRUSTEE .............................................................................................................................. 57 13.1 Background Information ............................................................................................................. 57 13.2 Board of Directors....................................................................................................................... 57 13.3 Financial Position ........................................................................................................................ 57 13.4 Experience in Trustee Business .................................................................................................... 57 13.5 Profile of Key Personnel .............................................................................................................. 57 13.6 Roles, Duties and Responsibilities of the Trustee ........................................................................... 57

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13.7 Retirement or Removal or Replacement of the Trustee .................................................................. 58 13.8 Power of Trustee to Remove, Retire or Replace the Manager ......................................................... 58 13.9 Trustee’s Statement of Responsibility ........................................................................................... 58 13.10 Trustee’s Disclosure of Material Litigation .................................................................................... 58 13.11 Trustee’s Delegate ...................................................................................................................... 58 13.12 Policy on Dealing with Related-Party Transactions/Conflict of Interest ............................................ 59 13.13 Anti-money Laundering Provisions ............................................................................................... 59 13.14 Statement of Disclaimer .............................................................................................................. 59 13.15 Consent to Disclosure ................................................................................................................. 59 14. TAX ADVISER’S LETTER ................................................................................................................ 61 15. STATEMENT OF CONSENT............................................................................................................ 66 16. DOCUMENTS AVAILABLE FOR INSPECTION .................................................................................... 67 17. UNIT TRUST LOAN FINANCING RISK DISCLOSURE STATEMENT ........................................................ 68 18. DIRECTORY OF SALES OFFICE ....................................................................................................... 69

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1. CORPORATE DIRECTORY

The Manager Affin Hwang Asset Management Berhad (429786-T) Registered Office 27

th Floor, Menara Boustead, 69 Jalan Raja Chulan

50200 Kuala Lumpur Business Address Suite 11-01, 11

th Floor

Menara Keck Seng 203 Jalan Bukit Bintang 55100 Kuala Lumpur Tel No. : (603) 2116 6000 Fax No. : (603) 2116 6100 Toll free line : 1-800-88-7080 E-mail : [email protected] Website : www.affinhwangam.com Board of Directors of the Manager

Tan Sri Dato’ Seri Che Lodin Bin Wok Kamaruddin (Non-independent Director)

Puan Maimoonah Binti Mohamed Hussain (Non-independent Director)

YBhg Mej Jen Dato’ Hj Latip Bin Ismail (Independent Director)

Mr Teng Chee Wai (Non-independent Director)

Mr David Jonathan Semaya (Non-independent Director)

Encik Abd Malik Bin A Rahman (Independent Director) Manager’s Delegate (fund valuation & accounting function) HSBC (Malaysia) Trustee Berhad (1281-T) Registered Office & Business Address 13

th Floor, Bangunan HSBC, South Tower

No 2, Leboh Ampang, 50100 Kuala Lumpur Tel No. : (603) 2075 7800 Fax No. : (603) 2179 6511 The Trustee HSBC (Malaysia) Trustee Berhad (1281-T) Registered & Business Address 13

th Floor, Bangunan HSBC, South Tower

No 2, Leboh Ampang, 50100 Kuala Lumpur Tel No. : (603) 2075 7800 Fax No. : (603) 2179 6511 Trustee’s Delegate (Local Custodian) The Hongkong and Shanghai Banking Corporation Limited (as Custodian) and assets held through:- HSBC Nominees (Tempatan) Sdn. Bhd. (258854-D) Registered Address No.2, Leboh Ampang, 50100 Kuala Lumpur Tel No. : (603) 2075 3000 Fax No. : (603) 2179 6488 Trustee’s Delegate (Foreign Custodian) HSBC Institutional Trust Services (Asia) Limited 6

th floor, Tower One, HSBC Centre

1, Sham Mong Road, Kowloon, Hong Kong Tel No. : (825) 2822 1111 Fax No. : (852) 2810 5259

Investment Committee Members

Dato’ V. Danapalan (Chairman, Independent member)

Puan Maimoonah Binti Mohamed Hussain (Non-independent member)

Mr Ong Teng Chong (Non-independent member)

Encik Mohammad Aminullah Bin Basir (Independent member)

Mr Phuah Eng Chye (Independent member)

Audit Committee Members

YBhg Mej Jen Dato’ Hj Latip bin Ismail (Chairman, Independent member)

En. Abd Malik bin A Rahman (Independent member)

Mr David Jonathan Semaya (Non-independent member)

Company Secretary Azizah Shukor (LS0008845) 27

th Floor Menara Boustead

69 Jalan Raja Chulan 50200 Kuala Lumpur Tax Adviser Ernst & Young Tax Consultants Sdn. Bhd. (179793k) Level 23A, Menara Milenium, Jalan Damanlela Pusat Bandar Damansara, 50490 Kuala Lumpur Auditor PricewaterhouseCoopers Level 10, 1 Sentral, Jalan Rakyat, KL Sentral P.O. Box 10192 50706 Kuala Lumpur Banker HSBC Bank Malaysia Berhad Head Office 2, Leboh Ampang 50100 Kuala Lumpur Solicitors Messrs. Soon Gan Dion & Partners 1

st Floor, No. 73, Jalan SS 21/1A

Damansara Utama 47400 Petaling Jaya FiMM Federation of Investment Managers Malaysia

19-06-1, 6th Floor, Wisma Tune 19, Lorong Dungun, Damansara Heights 50490 Kuala Lumpur Tel No. : (603) 2093 2600 Fax No. : (603) 2093 2700 Email: [email protected] Website: www.fimm.com.my Agents Registered unit trust consultants and other approved Institutional Unit Trust Advisers (as and when appointed) of the Manager.

http://www.affinhwangam.com/

mailto:[email protected]

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

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2. GLOSSARY The terms defined herein are specific to this Master Prospectus and are not of general application and may not be applicable to all other funds under the management of the Manager.

Act or CMSA

Means the Capital Markets and Services Act 2007 as originally enacted and amended or modified from time to time.

Assets of the Fund

Means a fund’s holdings, which may include debentures, cash and bank deposits, other money market instruments and all amounts due to the Fund.

Board

Means the Board of Directors of the Manager.

Bursa Malaysia Means the stock exchange managed and operated by the Bursa Malaysia Securities Berhad including such other name as it may be amended from time to time.

Business Day Means a day on which the Bursa Malaysia is open for trading.

Cooling – off Period Means within six (6) Business Days of the date of receipt of the application to purchase Units of the Fund by the Manager.

Cooling – off Right Refers to the right of an Investor to obtain a refund of that Investor’s investment in the Fund if that Investor so requests within the Cooling-off Period. This right is only given to an Investor who invests in any unit trust funds managed by the Manager for the first time. This right is not applicable to you if you are: i. A corporation or institution; ii. A staff of the Manager; or iii. Persons registered with a body approved by the SC to deal in unit trusts. An Investor who is entitled to the Cooling-off Right shall be refunded within 10 days of the date of receipt of the cooling-off application by the Manager.

days In respect of this Master Prospectus, a reference to “day” means calendar day unless otherwise stated.

Debenture It includes debenture stock, bonds, notes and any other evidence of indebtedness of a corporation for borrowed moneys, whether or not constituting a charge on the assets of the corporation.

Deeds Refers to the deeds and supplementary deeds of the respective Fund and any other supplemental deeds that may be entered into between the Manager and the Trustee and registered with the SC. SCashF : Deed dated 21 March 2005 as amended by First Supplemental Deed

dated 29 December 2005, Second Supplemental Deed dated 18 June 2007, Third Supplemental Deed dated 15 October 2008, Fourth Supplemental Deed dated 19 March 2010, the Fifth Supplemental Deed dated 18 January 2012 and the Sixth Supplemental Deed dated 27 June 2014; and

EDF : Deed dated 4 April 2005 as amended by First Supplemental Deed

dated 29 December 2005, Second Supplemental Deed dated 20 February 2006, Third Supplemental Deed dated 18 June 2007, Fourth Supplemental Deed dated 15 October 2008, Fifth Supplemental Deed dated 12 March 2009, Sixth Supplemental Deed dated 19 March 2010, the Seventh Supplemental Deed dated 18 January 2012 and the Eighth Supplemental Deed dated 27 June 2014.

‘A Deed’ or ‘Deed’ means any one of such deed.

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deposits Means fixed deposits.

EDF Refers to the Affin Hwang Enhanced Deposit Fund.

EPF Means Employees Provident Fund.

FiMM Means Federation of Investment Managers Malaysia.

financial institution Means (a) if the institution is in Malaysia: (i) a licensed bank; (ii) a licensed investment bank; or (iii) a licensed Islamic bank; (b) if the institution is outside Malaysia, any institution that is licensed, registered, approved or authorised by the relevant banking regulator to provide financial services.

Forward Pricing Means the NAV per Unit for EDF determined at the next valuation point after a purchase or repurchase request is received by the Manager.

Funds Refers to Affin Hwang Select Cash Fund and Affin Hwang Enhanced Deposit Fund. ‘A Fund’ or ‘Fund’ means any one of such fund.

GST Refers to the tax levied on goods and services pursuant to the Goods and Services Tax Act 2014.

Guidelines Refers to Guidelines on Unit Trust Funds issued by the SC and as amended, substituted or replaced from time to time.

Historical Pricing Means the NAV per Unit for SCashF determined at the valuation point immediately before the application for purchase or repurchase request is received by the Manager.

Investors Means the beneficial owners of the Units. It is sometimes used interchangeably with the term Unit Holders. An Investor is also a registered Unit Holder if that Investor’s name appears in the Fund’s register of Unit Holders. If the Investors invest through a nominee, then it is the nominee’s name that will appear in the Fund’s register as a Unit Holder.

Institutional Unit Trust Advisers (IUTA)

Means institutional unit trust adviser, which is an institution, a corporation or an organisation that is registered with the FiMM to market and distribute unit trust funds.

Latest Practicable Date (LPD)

As at 4 January 2016, being the latest practicable date for the purposes of ascertaining certain information contained in this Master Prospectus.

the Manager

Refers to Affin Hwang Asset Management Berhad.

MARC Refers to Malaysian Rating Corporation Berhad.

Money Market Means a fixed income instrument with a maturity period of less than 365 days.

Net Asset Value or NAV

Means the value of the Fund which is determined by deducting the value of all the Fund’s liabilities from the value of all the Fund’s assets, at the valuation point. For the purpose of computing the annual management fee and annual trustee

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fee, the NAV of the Fund should be inclusive of the management fee and the trustee fee for the relevant day.

NAV per Unit

Means the Net Asset Value of the Fund at a particular valuation point divided by the total number of Units in Circulation at that valuation point.

RAM Refers to RAM Rating Services Berhad.

Repurchase Charge Means a fee imposed pursuant to a repurchase request.

Repurchase Price

Means the price payable by the Manager to the Unit Holders pursuant to a repurchase request. The Repurchase Price is equivalent to the NAV per Unit of the Fund. As such, any Repurchase Charge applicable is excluded from the calculation of the Repurchase Price.

RM Means Ringgit Malaysia, the lawful currency of Malaysia.

Sales Charge Means a fee imposed pursuant to a purchase request.

SC Securities Commission Malaysia.

SCashF Affin Hwang Select Cash Fund.

Selling Price Means the price payable by the Unit Holder for the Manager to create a Unit in the Fund pursuant to a purchase request. The Selling Price is equivalent to the NAV per Unit. As such, any Sales Charge applicable is excluded from the calculation of the Selling Price.

Short-term Means a period of less than 3 years.

Special resolution Means a resolution passes by a majority of not less than three quarter (¾) of Unit Holders voting at a meeting of Unit Holders. For the purpose of terminating or winding up the Fund, a special resolution is passed by a majority in number representing at least three quarter (¾) of the value of Units held by Unit holders voting at the meeting.

the Master Prospectus

Refers to this master prospectus in respect of the Affin Hwang Select Cash Fund and Affin Hwang Enhanced Deposit Fund and includes any supplementary or replacement master prospectus, as the case may be.

The Trustee HSBC (Malaysia) Trustee Berhad (1281-T).

Unit or Units Means a measurement of the right or interest of a Unit Holder in a Fund including a fraction of a Unit.

Units in Circulation

Means Units created and fully paid. It is the total number of Units issued at a particular valuation point.

Unit Holders Refers to the person registered as the holder of a Unit or Units including persons jointly registered.

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3. KEY DATA

THIS SECTION IS ONLY A SUMMARY OF THE SALIENT INFORMATION ABOUT THE FUNDS AND THAT INVESTORS SHOULD READ AND UNDERSTAND THE WHOLE MASTER PROSPECTUS BEFORE MAKING ANY INVESTMENT DECISIONS.

Fund Information Page Fund Name SCashF EDF

Client Portfolio Managers

Institutional Unit Trust Advisers and

unit trust consultants

Fund Category Money Market

Fund Type Income

Launch Date 31 March 2005 18 April 2005

Financial Year End 30 November 30 April Investment Objective

To provide Investors with a regular income stream and high level of liquidity to meet cash flow requirement while maintaining capital preservation.

19:20

Asset Allocation

The Funds will invest 90% to 100% of the NAV of the Funds in short-term fixed income instruments with a maturity period of not more than 365 days. Up to 10% of the NAV of the Funds is to be invested in debentures, money market instruments and deposits with a remaining maturity period of more than 365 days but fewer than 732 days.

Investment Strategy

The Funds shall invest in a diversified portfolio of good quality, short-term fixed income instruments and money market instruments, including deposits, bankers’ acceptances, negotiable certificates of deposits and commercial papers. Other fixed income instruments comprise of government and government-sponsored bonds, and private debt securities with a maturity period of not more than 732 days. Only applicable to SCashF Investment in Foreign Countries The Fund may invest in foreign investment instruments such as sovereign issued bond and private debt securities. The purpose of such a strategy is to enhance the yield of the Fund as well as to provide portfolio diversification. The selection of individual foreign fixed income instruments would also follow a similar process/ considerations as highlighted above. Investments in foreign fixed income instruments are subject to currency risk. The decision to hedge any foreign currency exposure would depend on the Manager’s outlook and views on the relevant currency exposures of the Fund.

Please refer to Section 5.2.1 for further details.

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Performance Benchmark

The benchmark to be used by the Manager in measuring the performance of the Funds will be the Maybank Overnight Repo Rate.

19:20

Investors’ Profile The Funds are primarily suitable for low risk Investors who are generally conservative, risk averse and prefer a short-term investment horizon.

Specific Risks of Investing in the Funds

Market risk

Credit/default risk

Interest rate or Price risk

Liquidity risk

Currency risk

Market risk

Credit/default risk

Interest rate or Price risk

Liquidity risk

Derivative risk

16-17

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Country risk

Derivative risk

Fees and Charges

This table describes the charges that you may directly incur when you buy or sell Units of the Funds.

Sales Charge Nil 32

Switching Fee

Nil

The Manager, however, retains the discretion to charge a switching fee up to a maximum of 1% of the NAV per Unit of the Funds.

Transfer Fee RM5.00

Repurchase Charge

Nil

This table describes the fee that you may indirectly incur when you invest in the Funds.

Management Fee Up to 0.5% per annum of the NAV of the Fund.

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Trustee Fee Up to 0.05% per annum (including local custodian fee but excluding foreign sub-custodian fee, if any) of the NAV of the Fund.

Fund Expenses These include:

Commissions/fees paid to brokers/dealers in affecting dealings in the investments of the Funds;

Charges/fees paid to custodian;

Tax and other duties charged on the Funds by the government and other authorities;

The fee and other expenses properly incurred by the auditor appointed for the Funds;

Fees for the valuation of any investments of the Funds by independent valuers;

Costs incurred for the modification of the Deeds of the Funds other than those for the benefit of the Manager or Trustee;

Cost incurred for any meeting of the Unit Holders other those convened by, or for the benefit of, the Manager or Trustee; and

Other fees/expenses permitted in the Deeds.

33

Transaction Details

Minimum Initial Investment

*

RM1,000,000

RM100,000

RM10,000

37

Minimum Units Held

*

500,000 Units

50,000 Units

10,000 Units

38

If the repurchase request leaves an Investor with less than the minimum holdings, the Investor may be required to make an application for the Manager to repurchase all the Investor’s holding in the Funds.

* subject to change at the Manager’s discretion

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Minimum Additional Investment

*

RM500,000

RM50,000

RM10,000

37

Frequency of Repurchase / Minimum Units Repurchased

Unlimited / No minimum number of Units

Unlimited / Minimum number of Units for repurchase request is 10,000

Units*

38

Period of Payment of Repurchase Proceeds

On the next Business Day from the day we receive your repurchase request at or before the cut-off time of 10.30 a.m. on a Business Day.

Within 4 Business Days after the day we receive your repurchase request at or before the cut-off time of 10.30 a.m. on a Business Day.

Within 4 Business Days after the day we receive your repurchase request at or before 12.00 p.m. on a Business Day.

37-38

Cooling-off Period Applicable only to Investors qualified for Cooling-off Right, within six (6) Business Days of the date of receipt of the application to purchase Units of the Fund by the Manager. The Investor shall be refunded within 10 days of receipt of the cooling-off application by the Manager.

38-39

Switching Facility You are allowed to switch only between funds that are denominated in the same currency managed by us, subject to the terms and conditions applicable for the respective funds. If you invest in EDF through the EPF Members’ Investment Scheme (EMIS), you are only allowed to switch to any of our EPF approved funds.

39

Transfer Facility Transfer of ownership is permitted. It must be in terms of Units and not in Ringgit Malaysia.

39

Distribution and Reinvestment of Distribution Policy

The Fund endeavours to distribute income on a monthly basis. Unit Holders may, when filling up the application form for the purchase of Units, elect the mode of distributions in cash payment or additional Units by way of reinvestment by simply ticking the appropriate column in the application form. Unit Holders may also inform the Manager, at any time before the distribution date of the Unit Holders’ wish of receiving cash payment or additional Units via reinvestment. All distribution will be automatically reinvested into additional units in the Funds if Unit Holders did not elect the mode of distributions in the application form.

Please refer to Section 6.4 for further details.

24-25


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Other Information

The Manager Affin Hwang Asset Management Berhad 50

Designated Fund Manager

Esther Teo Keet Ying 53

The Trustee HSBC (Malaysia) Trustee Berhad 57

Fund Valuation Agent

HSBC (Malaysia) Trustee Berhad 54

Deed(s) that govern the Fund

Deed dated 21 March 2005 as amended by the First Supplemental Deed dated 29 December 2005, the Second Supplemental Deed dated 18 June 2007, the Third Supplemental Deed dated 15 October 2008, the Fourth Supplemental Deed dated 19 March 2010, the Fifth Supplemental Deed dated 18 January 2012 and the Sixth Supplemental Deed dated 27 June 2014.

Deed dated 4 April 2005 as amended by the First Supplemental Deed dated 29 December 2005, the Second Supplemental Deed dated 20 February 2006, the Third Supplemental Deed dated 18 June 2007, the Fourth Supplemental Deed dated 15 October 2008, the Fifth Supplemental Deed dated 12 March 2009, the Sixth Supplemental Deed dated 19 March 2010, the Seventh Supplemental Deed dated 18 January 2012 and the Eighth Supplemental Deed dated 27 June 2014.

Past performance of the Fund is not an indication of its future performance. There are fees and charges involved and Investors are advised to consider the fees and charges before investing in the Funds. All fees and charges payable by you are subject to all applicable taxes (including but not limited to goods and services taxes) and/or duties as may be imposed by the government and/or the relevant authorities from time to time. Unit prices and distributions payable, if any, may go down as well as up. For information concerning certain risk factors which should be considered by prospective Investors, see “Risk Factors” commencing on page 15. THE FEES, CHARGES AND EXPENSES QUOTED IN THE MASTER PROSPECTUS ARE EXCLUSIVE OF GST. FROM 1 APRIL 2015 ONWARDS, WE, THE TRUSTEE AND/OR OTHER SERVICE PROVIDERS WILL CHARGE GST AT THE RATE OF 6% ON THE ABOVEMENTIONED FEES, CHARGES AND EXPENSES IN ACCORDANCE WITH THE GOODS AND SERVICES TAX ACT 2014.

15

4. RISK FACTORS

This section of the Master Prospectus provides you with information on the general risks involved when investing in a unit trust fund and the specific risks associated with the securities/instruments that the Fund will be investing in.

4.1 General Risks

Fund Management Risk - The performance of the Funds depends in part on the experience and expertise of the investment managers and this is of particular importance when the Funds have a narrower investment scope e.g. investments in certain countries or sectors only. The lack of experience and expertise in those countries or sectors may jeopardize the performance of the Funds.

Performance Risk - The performance of the Funds depends on the financial instruments that the Funds purchase. If the instruments do not perform within expectation or if there is a default, then, the performance of the Funds will be impacted negatively. The performance of the Funds may also be impacted if the allocation of assets is not properly done. This is where the experience and expertise of the investment managers are important and the risk on the lack of experience and expertise of the investment managers is highlighted above. On that basis, there is never a guarantee that investing in the Funds will produce the desired investment returns or on the distribution of income.

Note: The specific risk associated with the instruments that the Funds intend to purchase is stated below.

Inflation Risk - Investors are advised that the Funds are not constituted with the objective of matching the inflation rate of Malaysia and any other countries. The Funds have specific objective as to what they seek to achieve, they do not take into account rise or fall of inflation rates. Investors with an investment objective of matching their returns with the movement of inflation rates may not be suited for the Funds as the Funds’ returns may not grow proportionately with the inflation rate thus making the Investors’ purchasing power fall over time.

Liquidity Risk - Liquidity risk refers to two scenarios. The first is where an investment cannot be sold due to unavailability of a buyer for that investment. The second scenario exists where the investment, by its nature, is thinly traded. This will have the effect of causing the investment to be sold at below its actual value.

Loan Financing Risk – An Investor who intends to purchase Units of the Funds using borrowed/financed monies and pledging those Units as collateral for the borrowed/financed monies should be aware that if the price of the Units falls below the borrowed/financed amount, the lender may require the Investor to provide additional forms of collaterals.

Interest Rate Risk – The level of interest rates has an impact on the value of investments and economic growth of a country. High interest rates dampen investments and aggregate demand leading to an economic slowdown. The value of debt securities move in the opposite direction of interest rates, any increase in rates will lead to a reduction in the value of debt securities, thus affecting the NAV of the Funds.

Risk of Non-compliance – There is also the risk that the Manager of the Funds may not follow the rules set out in the Funds’ constitution, or the law that governs the Funds, or will act fraudulently or dishonestly. The non-compliance may expose the Funds to losses particularly caused by the fraudulent or dishonest acts or omissions of the Manager.

Operational Risk - Operational risk is the risk of loss due to the breakdown, deficiencies or weaknesses in the operational support functions resulting in the operations or internal control processes producing an insufficient degree of customer quality or internal control by the Manager. Operational risk is typically associated with human error, system failure, fraud and inadequate or defective procedures and controls.

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Political Risk – The Funds are exposed to the local political situation or environment at all times. Any change or instability in this regard may more likely than not result in less than favourable implications on the Funds. For example, a change in political leadership or political stance which subsequently translates into changes or reforms in government economic or legislative policies, some of which may affect Investors directly or indirectly, especially when there is a change from a business-friendly government and policy model to one which is less business friendly. This may result in situations such as increased transaction costs, taxes, administrative requirements and restrictions in investments or holding periods.

Regulatory Risk - So long as the Funds continue to invest in a particular country, the Funds will be exposed to changes in the regulatory regime of that country. Perhaps a regulatory regime that changes constantly is in respect of tax treatment of investment income. Investors should not presume that the tax treatment of a particular investment will be the same in perpetuity. A change in the tax treatment of an investment of the Funds, like currency risk, may affect the Funds, in a positive or a negative way. An increase in the tax treatment of a particular investment would mean lower returns for the Funds and vice versa.

4.2 Specific Risks

The specific risks associated with the securities/instruments in which the Funds will invest include:-

Market Risk Market risk arises due to fluctuations in market values of investments. Such fluctuations occur because of factors that affect the entire market. Factors such as economic growth, political stability and social environment are some examples of conditions that have an impact on businesses, whether positive or negative. Market risk cannot be eliminated but may be reduced through diversification. It stems from the fact that there are economy-wide perils or instances of political or social instability which threaten all businesses. Hence, the Funds will be exposed to market uncertainties and no matter how many securities are held, fluctuations in the economy, political instability and social unrest will affect the market price of the Funds’ investments either in a positive or negative way.

• Credit/default Risk

Credit or default risk refers to the possibility that the issuer or financial institution of a fixed income instruments, money market instruments, debentures or placement of deposit will not be able to make timely payments of interest or principal repayment on the maturity date. This may lead to a default in the payment of principal and interest and ultimately a reduction in the value of the Funds. In such cases, Investors may suffer significant loss in respect of their capital invested and income foregone. This risk is reduced by giving emphasis on credit analysis conducted to determine the issuer’s or guarantor’s ability to service promised payments.

• Interest Rate or Price Risk

All fixed income Investors are exposed to interest rate risk. Changes in the level of interest rates will cause prices of debentures to change inversely. This risk can largely be eliminated by holding the instruments until maturity, thereby locking in price and yields. However, whether the Funds will hold any instrument until maturity will depend on actual and expected changes in interest rates. The Funds manage interest rate risk by considering each instrument’s sensitivity to interest changes as measured by its duration. When interest rates are expected to increase, the Funds would switch to instruments with shorter duration and are less sensitive to interest rate changes.

• Liquidity Risk

Liquidity risk is the risk that the instrument in which the Funds invested in cannot be readily sold and converted into cash. This can occur when trading volume for the instrument is low and / or when there is a lack of demand for the instrument. In managing the liquidity risk, the Manager will employ liquidity or ‘volume traded’ analysis on primary and secondary markets for all the instrument types. Where applicable, the Manager will look into the historical volume transacted for the instruments in question. Thereafter, the appropriate asset allocation can be made for each of the securities/instruments to reduce the Funds’ liquidity to a comfortable level with the security/instrument’s risk return profile. The liquidity risk is managed by the Funds’ credit selection and diversification policies.

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• Currency Risk (only applicable to SCashF) As the investments of the Fund may be denominated in currencies other than the base currency of the Fund, any fluctuation in the exchange rate between the base currency of the Fund and the currencies in which the investments are denominated may have an impact on the value of these investments. You should be aware that if the currencies in which the investments are denominated depreciate against the base currency of the Fund, this will have an adverse effect on the NAV of the Fund in the base currency of the Fund and vice versa. You should note that any gains or losses arising from the fluctuation in the exchange rate may further increase or decrease the returns of the investment.

• Country Risk (only applicable to SCashF)

Investments of the Fund in any countries may be affected by changes in the economic and political climate, restriction on currency repatriation or other developments in the law or regulations of the countries in which the Fund invests in. For example, the deteriorating economic condition of such countries may adversely affect the value of the investments undertaken by the Fund in those affected countries. This in turn may cause the net asset value of the Fund or prices of Units to fall.

• Derivative Risk

Whilst the Fund does not intend to actively trade in derivatives, the Manager may enter into forward contracts to hedge the Fund’s positions. In this respect, valuation of such instruments takes into account a multitude of factors such as movement of the underlying asset, volatility of the underlying assets, interest rate levels, the correlation of the underlying assets with the Fund, the implied future direction of the underlying assets and other such factors. Any change in the aforesaid factors would either positively or negatively impact the value of the investment.

4.3 Risk Management

In the Manager’s day-to-day running of the business, the Manager employs a proactive risk management approach to manage portfolio risks and operational risks. The Board has established a compliance & risk management committee to oversee the Manager’s risk management activities both at operational level and at portfolio management level to ensure that the risk management process is in place and functioning. The compliance & risk management committee comprises of at least three board members and is chaired by an independent director. At the operational level, the Manager has established an executive risk management committee with the primary function of identifying, evaluating and monitoring risks as well as to formulate internal control measures to manage and mitigate the exposure to risks that may affect the performance of the Funds, returns to the investors or Unit Holders’ interest within a clearly defined framework and is primarily responsible for ensuring that the policies and procedures that have been implemented are reviewed on an on-going basis with periodic assessments. The executive risk management committee reports to the compliance & risk management committee on a quarterly basis. Measures employed by the Manager include employing active and effective asset allocation strategy as well as adhering to the Funds’ investment objective, investment policies and strategies. In ensuring the investment restrictions and limits of the Funds are met, the Manager has in place proper procedures with clear parameters for the investment personnel to abide by. The Manager also has in place a system that is able to monitor the transactions to ensure compliance with the Funds’ investment limits and restrictions. The Manager undertakes stringent evaluation of movements in market prices and regularly monitors, reviews and reports to the Investment Committee to ensure that the Funds’ investment objectives are met. Regular portfolio reviews by senior members of the investment team further reduce the risk of inconsistent implementation and violation of the Guidelines. The Manager also employs a performance attribution system that enables the Manager to review the performance of the Funds to determine the key factors that have contributed and detracted from the Funds’ performance. This system complements the Manager’s overall risk management process as the system also provides standard risk analytics on the portfolio such as the Funds’ standard deviation, tracking error and measures of excess return. The data produced by the performance attribution system is reviewed regularly and at least on a monthly basis in meetings chaired by the managing director and participated by the portfolio managers and the performance evaluation team.

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The Manager engages a stringent screening process by conducting fundamental analysis of economic political and social factors to evaluate their likely effects on the performance of the markets and sectors. Regular meetings are held to discuss investment themes and portfolio decisions taken at the meetings are then implemented according to the investment guidelines. The Manager also practises prudent liquidity management in a timely and cost effective manner to ensure that the Funds are able to meet their short-term expenses including repurchase requests by the Unit Holders.

It is important to note that events affecting the investments cannot always be foreseen. Therefore, it is not always possible to protect investments against all risks. The various asset classes generally exhibit different levels of risk. The investments of the Funds carry risks and you are recommended to read the whole Master Prospectus to assess the risks of the Funds. If necessary, you should consult your professional adviser(s) for a better understanding of the risks.

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5. FUND DETAILS

5.1 Fund Specifics

A. Affin Hwang Select Cash Fund (SCashF)

Investment Objective Affin Hwang Select Cash Fund aims to provide Investors with a regular income stream and high level of liquidity to meet cash flow requirement whilst maintaining capital preservation. Any material change to the investment objective of the Fund would require Unit Holders’ approval. Investors’ Profile The Fund is suitable for low risk Investors who are generally conservative, risk averse and prefer a short-term investment horizon. Performance Benchmark The performance benchmark of the Fund is the Maybank Overnight Repo Rate. (Source: www.maybank2u.com.my)

Asset Allocation

The Fund will invest 90% to 100% of the NAV of the Fund in short-term fixed income instruments with a maturity period of not more than 365 days and up to 10% of the NAV of the Fund will be invested in debentures, money market instruments and deposits with a maturity period of more than 365 days but fewer than 732 days.

Permitted Investments Unless otherwise prohibited by the relevant authorities or any relevant law or contract and provided always that there is no inconsistency with the objective and asset allocation of the Fund, the Fund may invest in the following: (a) Securities which may take the form of bills, certificates and other evidence of indebtedness; (b) Other obligations issued or guaranteed by sovereign governments and Government-related

agencies; (c) Debentures such as bonds, notes including credit-linked notes and structured notes, private

debt securities and commercial papers whether issued directly by the issuer or in the secondary market;

(d) Money market instruments; (e) Currency deposits with financial institutions and finance companies including Negotiable

Certificates of Deposits, Bankers acceptance and placements of money at call with investment banks;

(f) Collective investment schemes; (g) Derivatives for hedging purposes only; and (h) Any other investment instruments permitted by SC from time to time. Please note that the Manager intends to enter into derivative trades solely for hedging. In this respect, the Manager does not consider the derivative trades as investment proper but rather a risk management exercise.

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B. Affin Hwang Enhanced Deposit Fund (EDF)

Investment Objective The Affin Hwang Enhanced Deposit Fund aims to provide Investors with a regular income stream and high level of liquidity to meet cash flow requirement while maintaining capital preservation. Any material change to the investment objective of the Fund would require Unit Holders’ approval. Investors’ Profile The Fund is suitable for low risk Investors who are generally conservative, risk averse and prefer a short-term investment horizon. Performance Benchmark The performance benchmark of the Fund is the Maybank Overnight Repo Rate. (Source: www.maybank2u.com.my) Asset Allocation The Fund will invest 90% to 100% of the NAV of the Fund in short-term fixed income instruments with a maturity period of not more than 365 days and up to 10% of the NAV of the Fund will be invested in debentures, money market instruments and deposits with a maturity period of more than 365 days but fewer than 732 days. Permitted Investments Unless otherwise prohibited by the relevant authorities or any relevant law or contract and provided always that there is no inconsistency with the objective and asset allocation of the Fund, the Fund may invest in the following: (a) Fixed income securities of companies listed on the Bursa Malaysia and any other market

considered as eligible market; (b) Fixed income securities that are not traded in or under the rules of an eligible market including

unlisted fixed income securities that have been approved by the SC for listing and quotation on either the Bursa Malaysia or any other market considered to be an eligible market;

(c) Malaysian Government Securities, Treasury Bills, Bank Negara Malaysia Certificates/Bills, Government Investment Certificates and Cagamas Notes/Bonds;

(d) Other obligations issued or guaranteed by the Malaysian governments, including Bank Negara Malaysia, State Governments and Government-related agencies;

(e) Private Debt Securities and Bonds; (f) Bankers’ acceptances and other tradable money market instruments in the money market which

are rated P1/MARC-1 (RAM/MARC); (g) Ringgit-denominated deposits placed with commercial banks, investment banks and finance

companies; (h) Negotiable Certificates of Deposits and placement of money at call with investment banks; (i) Collective investment schemes; (j) Futures contract, for hedging purposes only, traded in futures market of an exchange approved

under the Act; and (k) Other investment permitted by the SC from time to time.

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5.2 Investment Strategy & Investment Restrictions and Limits 5.2.1 Investment Strategy for SCashF & EDF

The Funds shall invest in a diversified portfolio of good quality, short-term fixed income investments and money market instruments, including deposits, bankers’ acceptances, negotiable certificates of deposits and commercial papers. Other fixed income investments comprise of government and government-sponsored bonds and private debt securities with a maturity period of not more than 732 days. The Funds will invest in debt securities which are of good quality to ensure with relative certainty of principal repayment and stable overall total return. Although the Funds are actively managed, the Funds management strategy will be dependent on the interest rate environment as well as the anticipated redemption requests by investors. In selecting individual debt securities which are of good quality, the following are of important consideration:

issuer’s and/or guarantor’s industry and business medium to long-term outlook;

issuer’s and/or guarantor’s financial strength and gearing levels;

issuer’s and/or guarantor’s cash-flow quality and volatility;

issuer’s and/or guarantor’s expected future cash-flow and ability to pay interest and principal;

issuer’s and/or guarantor’s ratings by RAM or MARC;

duration and interest rate sensitivity;

collateral type and value, and claims priority; and

price and yield-to-maturity. Please note that the Manager intends to enter into derivative trades solely for hedging. In this respect, the Manager does not consider the derivative trades are investment proper but rather a risk management exercise. In the event the rating of a particular security or an issuer is downgraded by a recognised rating agency so as to result in non-compliance with the permitted investments, the Manager shall, within 6 months, take steps to replace such security or issuer. Only applicable to SCashF Investment in Foreign Countries The Fund may invest in foreign investment instruments such as sovereign issued bond and private debt securities. The purpose of such a strategy is to enhance the yield of the Fund as well as to provide portfolio diversification. The selection of individual foreign fixed income instruments would also follow a similar process/ considerations as highlighted above. The Fund also may invest in derivatives, such as foreign exchange forward contracts and cross currency swaps for hedging purposes only. Foreign exchange forward and/or cross currency swaps contracts may be used to hedge the principal and/or the returns of the foreign currency denominated investments, if any, back to RM. The employment of derivatives under these circumstances is expected to reduce the impact of foreign currency movements on the Fund’s NAV. While the hedging strategy will assist with mitigating the potential foreign exchange losses by the Fund, any potential foreign exchange gains from the hedging strategy will be capped as well. Investments will be made into countries where the regulatory authorities are ordinary or associate members of the International Organization of Securities Commissions (IOSCO).

5.2.2 Investment Restrictions and Limits for SCashF & EDF

The restrictions and investment limits for the Funds are as follows:- (a) The value of the Funds’ investment in permitted investments (refer to Debentures, money

market instruments and placement of deposits) must not be less than 90% of the Funds’ NAV; (b) The value of the Funds’ investment in permitted investments which have a remaining maturity

period of not more than 365 days must not be less than 90% of the Funds’ NAV;

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(c) The value of the Funds’ 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 Funds’ NAV;

(d) The value of the Funds’ holding in Debentures and money market instruments issued by any single issuer must not exceed 20% of the Funds’ NAV;

(e) The single issuer limit set out in (d) may be increased to 30% if the Debentures are rated by any domestic or global rating agency to be of the best quality and offer highest safety for timely payment of interest and principal;

(f) The value of the Funds’ investments in Debentures and money market instruments issued by any group of companies must not exceed 30% of the Funds’ NAV;

(g) The value of the Funds’ placement in deposit with any single financial institution must not exceed 20% of the Funds’ NAV;

(h) The Funds’ investments in Debentures must not exceed 20% of the securities issued by any single issuer;

(i) The Funds’ investments in money market instruments must not exceed 20% of the instruments issued by any single issuer; and

(j) The Funds’ investments in collective investment schemes must not exceed 25% of the Units/shares in any collective investment scheme.

The abovementioned limits and restrictions shall be complied with at all times based on the most up-to-date valuation of the investments and instruments of the Funds. However, a 5% allowance in excess of any of the abovementioned limits or restrictions is permitted where the limit or restriction is breached through the appreciation or depreciation of the NAV of the Funds (whether as a result of an appreciation or depreciation in value of the investments of the Funds, or as a result of repurchase of Units or payments made out of the Fund or due to currency movements). If the relevant limit is breached, no further acquisition of the particular instruments involved shall be made. The Manager shall, within a reasonable period of not more than three (3) months from the date of the breach, take all necessary steps and actions to rectify the breach. Such limits and restrictions, however, do not apply to instruments that are issued or guaranteed by the Malaysian Government or Bank Negara Malaysia. Investment in the Funds is not the same as placement 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 Funds.

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6. ADDITIONAL INFORMATION IN RELATION TO THE FUNDS 6.1 Valuation of Assets

In valuing the Funds’ investments, the Manager will ensure that all the assets of the Funds will be valued at fair value and at all times be in compliance with Schedule B of the Guidelines.

Debentures/ Fixed income instruments Valuation of investments in unlisted debentures/ fixed income instruments denominated in Ringgit Malaysia will be done by using the fair value price quoted by a bond pricing agency (“BPA”) registered with the SC. If the Manager is of the view that the price quoted by BPA differs from the “market price” quoted by at least 3 independent dealers by more than 20 basis points and the Manager determines that the methodology used by the independent dealers to obtain the “market price” is more appropriate, the Manager may elect to use the price quoted by the independent dealers as the “market price” provided that the Manager records its basis for using a non-BPA price, obtains the necessary internal approvals to use the non-BPA price and keeps an audit trail of all decisions and basis for adopting the “market yield”. Valuation of investment in foreign debentures will be done based on either market value or in the absence of reliable market quotation, the average indicative price obtained from at least 3 independent dealers will be used. Money market instruments Valuation of money market instruments such as negotiable certificates of deposits shall be done by reference to the value of such investments as provided by the financial institution that issues the investment. Unquoted investments are assessed on the latest revaluation. If it is an unquoted security, which is a money market instrument such as treasury bills, bankers’ acceptance, commercial papers with maturity less than a year, the valuation may use the amortization method, i.e. the purchased discount or premium will be amortized to the remaining periods of maturity, being determined by the Manager as it deems appropriate. Placement of deposits Valuation of investments such as bank bills and placement of deposits placed with financial institutions will be done based on the value of such investments and the interest income accrued thereon for the relevant period. Collective investment schemes Valuation of investments in collective investment schemes will be done based on the last published repurchase price. Derivatives The valuation of derivatives will be based on the rates provided by the respective issuers. For foreign exchange forward contracts (“FX Forwards”), the Manager will apply interpolation formula to compute the value of the FX Forwards based on the rates provided by Bloomberg. If the rates are not available on Bloomberg, the FX Forwards will be valued by reference to the average indicative rate quoted by at least 3 independent dealers. In the case where the Manager is unable to obtain quotation from 3 independent dealers, the FX Forwards will be valued in accordance to fair value as determined in good faith by the Manager, on methods or bases which have been verified by the auditor of the Fund and approved by the Trustee.

In accordance to the Financial Reporting Standard 139 issued by the Malaysian Accounting Standards Board, the Manager will obtain the daily price or value of the assets for the purpose of valuing the Funds. In the absence of daily price or value of the assets, the Manager will use the latest available price or value of the assets respectively.

6.2 Valuation Point for the Funds

SCashF The Fund will be valued at 6.00 p.m on every Business Day (or “trading day” or “T” day). All foreign assets are translated into the base currency based on the latest available bid exchange rate quoted by Bloomberg/Reuters at 4.00 p.m. (United Kingdom time) which is equivalent to 11 p.m. or 12 a.m. midnight (Malaysian time) on the same day, or at such time as stipulated in the investment management standards issued by the FiMM.

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The Fund adopts a historical pricing (see Section 9.2) basis which means that prices of Units will be calculated based on the NAV of the Fund at a valuation point before the purchase/repurchase request is received by the Manager.

The Manager may perform an additional valuation at mid day during the close of Bursa Malaysia on a Business Day and will reprice the Units if the NAV per Unit of the Fund differs by more than 5% from the last valuation points.

EDF The Fund will be valued at 6.00 p.m on every Business Day (or “trading day” or “T” day). The Fund adopts Forward Pricing methodology i.e 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.

6.3 Policy on Gearing and Minimum Liquid Assets Requirements

The Funds are prohibited from borrowing cash or other assets (including the borrowing of securities within the meaning of the Guidelines on Securities Borrowing and Lending {SBL} issued by the SC) in connection with their activities. However, the Funds may borrow cash for the purpose of meeting repurchase requests for Units and for short-term bridging requirements; such borrowings are subjected to the following:

the Funds’ cash borrowing are only on a temporary basis and that borrowings are not persistent;

the borrowing period should not exceed a month;

the aggregate borrowings of the Funds should not exceed 10% of the Funds’ NAV at the time the borrowing is incurred; and

the Funds may only borrow from a licensed financial institutions. Except for securities lending as provided under SBL, none of the cash or investments of the Funds may be lent. Further, the Funds may not assume, guarantee, endorse or otherwise become directly or contingently liable for, or in connection with, any obligation or indebtedness of any person. In structuring the portfolio of the Funds, there will be no minimum limit for liquid assets as the Funds are money market fund and are expected to be highly liquid.

6.4 Distribution Policy & Reinvestment of Distribution Policy Distribution Policy The Funds endeavour to distribute income on a monthly basis. All income distribution will be made in the form of cash. For EPF Investors, any income distributions paid by the EDF will be considered as EPF savings and automatically reinvested in the form of additional units for the Investors*. *Please note that this is not applicable to SCashF, as SCashF is not under EPF Members’ Investment Scheme. Reinvestment of Distribution Policy Unit Holders may, when filling up the application form for the purchase of Units, elect the mode of distributions in cash payment or additional Units by way of reinvestment by simply ticking the appropriate column in the application form. Unit Holders may also inform the Manager, at any time before the distribution date of the Unit Holders’ wish of receiving cash payment. All distribution will be automatically reinvested into additional units in the Funds if Unit Holders did not elect the mode of distributions in the application form.

Cash Payment Process* Unit Holders electing to receive income distribution by way of cash payment shall be paid via cheque, and shall receive the cheque by mail seven (7) Business Days after the distribution date, which will be sent to the address stated in the Fund’s register of Unit Holders. Where Units are held jointly, the cheque shall be issued in the name of the principal Unit Holder. The principal Unit Holder is the one who is first named in the Fund’s register of Unit Holders. The Unit Holders may also opt to receive the income distribution by

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way of cash payment via telegraphic transfer where income will be transferred to the Unit Holder’s bank account, seven (7) Business Days after the distribution date. A cheque which is not presented after six (6) months from the date of its issuance will be reinvested on behalf of the Unit Holder based on the NAV per Unit immediately after the six (6) months period. Reinvestment Process* For Unit Holders who elect to reinvest the distribution in additional Units, the Manager will create such Units based on the NAV per Unit at the income payment date which is two (2) Business Days after the income distribution date. *There will not be any additional cost to Unit Holders for reinvestments in new additional Units.

6.5 Termination of the Funds

The Funds may be terminated in the following events:- (a) In accordance with the provision under Section 10.3.1 below; (b) Where SC has withdrawn the authorization of the Fund under Section 256E of the Act; and (c) The effective date of an approved transfer scheme (if any) has resulted in the Funds being with no

asset/property.

6.6 EPF Investments

EDF is an approved fund under EPF Members’ Investment Scheme (EMIS). However, EDF is subject to annual evaluation by the EPF. In the event EDF is no longer offered under the EMIS after the annual process, the Unit Holders of EDF who have invested through the EMIS will remain invested in EDF, but there will not be any new sale of EDF Units to the Unit Holders/Investors under EMIS.

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7. HISTORICAL PERFORMANCE OF THE FUNDS 7.1 Affin Hwang Select Cash Fund (SCashF) 7.1.1 Historical Fund Performance (1 December 2014 – 30 November 2015)

For the period under review from 1 December 2014 – 30 November 2015, the Fund registered a 3.55% return compared to the benchmark Maybank Overnight Repo Rate which yielded a return of 2.00%. The Fund thus outperformed the benchmark by 1.55%. The NAV per Unit of the Fund as at 30 November 2015 was RM1.0527 while the NAV per Unit as at 30 November 2014 was RM1.0441. During the period under review, the Fund has declared a total income distribution of RM0.028 per Unit by way of reinvestment in the form of additional Units.

Since commencement, the Fund has registered a return of 38.58% compared to the benchmark return of 21.60%, outperforming by 16.98%. The Fund has also declared a total income distribution of RM0.2824 per Unit by way of reinvestment in the form of additional Units. (See Table 1 for performance of the Fund and Figure 1 for movement of the Fund versus the benchmark respectively).

The benchmark is calculated based on Repo Rate Return before tax. If comparing the Fund’s performance against the after tax (tax rate of 25%) benchmark’s return of 1.50%, 4.34%, 7.08% and 16.20% for 1 Year, 3 years, 5 years and since commencement respectively, the Fund would have outperformed the benchmark by 2.05%, 5.80%, 10.01% and 22.38% respectively.

Given the performance during the period under review, we believe the Fund’s objective to provide investors with a regular income stream and high level of liquidity to meet cash flow requirement while maintaining capital preservation has been met. Figure 1: Movement of the Fund versus the benchmark

“This information is prepared by the Manager for information purposes only. Past earnings or the Fund’s distribution record is not a guarantee or reflection of the Fund’s future earnings/future distributions. Investors are advised that Unit prices, distributions payable and investment returns may go down as well as up. Source of benchmark is from Maybank.” Benchmark: Maybank Overnight Repo Rate

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Table 1: Performance of the Fund

1 Year

(1/12/14 - 30/11/15)

3 Years (1/12/12 - 30/11/15)

5 Years (1/12/10 - 30/11/15)

Since Commencement

(6/4/05 - 30/11/15)

Fund 3.55% 10.14% 17.09% 38.58%

Benchmark 2.00% 5.79% 9.43% 21.60%

Outperformance 1.55% 4.35% 7.66% 16.98%

Source of benchmark: Maybank

Table 2: Average Total Return

1 Year

(1/12/14 - 30/11/15)

3 Years (1/12/12 - 30/11/15)

5 Years (1/12/10 - 30/11/15)

Since Commencement

(6/4/05 - 30/11/15)

Fund 3.55% 3.27% 3.20% 3.11%

Benchmark 2.00% 1.89% 1.82% 1.85%

Outperformance 1.55% 1.38% 1.38% 1.26%


Table 3: Annual Total Return

2nd Year (01/12/05- 30/11/06)

3rd Year (01/12/06- 30/11/07)

4th Year (01/12/07- 30/11/08)

5th Year (01/12/08- 30/11/09)

6th Year (01/12/09- 30/11/10)

7th Year (01/12/10- 30/11/11)

8th Year (01/12/11- 30/11/12)

9th Year (01/12/12- 30/11/13)

10th Year (01/12/13- 30/11/14)

11th Year (01/12/14- 30/11/15)

Fund 2.94% 3.23% 3.29% 3.29% 2.84% 3.01% 3.20% 3.15% 3.12% 3.55%

Benchmark 2.21% 2.30% 2.30% 1.20% 1.32% 1.64% 1.78% 1.80% 1.88% 2.00%

Outperformance 0.73% 0.93% 0.99% 2.09% 1.52% 1.37% 1.42% 1.35% 1.24% 1.55%


Basis of calculation and assumption made in calculating returns: The performance figures are a comparison of the growth/decline in NAV for the stipulated period taking into account all the distribution payable (if any) during the stipulated period. An illustration of the above would be as follow:- Capital return = NAV per Unit end / NAV per Unit begin – 1 Income return = Income distribution per Unit / NAV per Unit ex-date Total return = Capital return x Income return - 1 Asset Allocation As at 30 November 2015, the asset mix of the Fund stood at 11.20% and the balanced in cash. For a snapshot of the Fund’s asset mix as at 30 November 2015, please refer to Figure 2.

Figure 2: Asset Mix of the Fund

Composition of Portfolio 30 Nov 2015

(%) 30 Nov 2014

(%) 30 Nov 2013

(%)

Repos / Cash 88.80% 49.21 58.95 Commercial papers 6.68% 23.64 18.27 Bonds - local 4.52% 22.64 17.60 Bonds - foreign - - 3.16 Credit link investment contract - local - 2.65 0.93 Credit link investment contract - foreign - 1.86 1.09

Total 100.00 100.00 100.00

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During the financial year, the Manager has reduced the portfolio’s position into commercial papers, and bonds in favour of higher exposure into Repos and/or cash to mitigate the portfolio’s volatility given the heightened uncertainties surrounding global markets. Distribution

30 November 2015

30 November 2014

30 November 2013

Gross distribution per Unit (sen) 2.80 3.23 2.14

Net distribution per Unit (sen) 2.80 3.23 2.14

The Manager has declared a gross distribution of RM0.0280 per Unit for Unit Holders of the Fund over the period under review.

Portfolio Turnover Ratio (PTR) 30 November

2015 30 November

2014 30 November

2013

PTR (times) 0.52 1.27 20.04

Note: Lower PTR was recorded during the period under review with less activities taking place given the lower exposure into commercial papers and bonds.

Past performance of the Fund is not an indication of its future performance

7.1.2 Historical Financial Highlights

Audited Annual Statement of Income and Expenditure for the Three (3) Most recent Financial Years

2015 RM

2014 RM

2013 RM

Investment income 64,258,795 89,214,977 81,913,440 Expenses (7,782,195) (13,175,411) (12,189,798)

Net Income Before Taxation 56,476,600 76,039,566 69,723,642

Net Income After Tax 56,476,599 75,688,413 69,745,330

Audited Annual Statement of Assets and Liabilities for the Three (3) Most Recent Financial Years

2015 RM

2014 RM

2013 RM

Total investments 1,401,679,180 1,969,861,193 1,105,088,560 Other assets 67,050 991,316 1,603,400,955

Total Assets 1,401,746,230 1,970,852,509 2,708,489,515

Total Liabilities (713,806) (918,262) (16,665,24)

NAV / Unit Holders’ capital 1,401,032,424 1,969,934,247 2,691,824,273

Expenses incurred by the Fund (1 December 2014 – 30 November 2015)

Management Fee

Trustee Fee

Fund Expenses

Total Annual Expenses

RM % RM % RM % RM %

6,940,068 0.43% 565,899 0.04% 265,678 0.02% 7,771,645 1.48%

Management Expense Ratio (MER)

2015 2014 2013

MER 0.48 0.53 0.54

Note: The Fund has recorded lower MER over the period under review on the back of higher holdings in deposits.

The audited financial statements of the Fund are disclosed in the Fund’s annual report.

Past performance of the Fund is not an indication of its future performance.

The Fund’s annual report is available upon request.

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7.2 Affin Hwang Enhanced Deposit Fund (EDF) 7.2.1 Historical Fund Performance (1 May 2014 – 30 Apr 2015)

For the period 1 May 2014 to 30 April 2015, the Fund registered a 3.44% return. The NAV per Unit of the Fund as at 30 April 2015 was RM1.0622 while the NAV per Unit as at 30 April 2014 was RM1.0366. During the same period, the Fund has declared a total income distribution of RM0.0099 per Unit by way of reinvestment in the form of additional Units. The benchmark return for the period under review was 1.96%. The Fund thus outperformed the benchmark by 1.48%. (See Table 1 for performance of the Fund and Figure 1 for movement of the Fund versus the benchmark respectively).

Since commencement, the Fund has registered a return of 36.69% versus the benchmark of 24.13% which translates to an outperformance of 12.56%. The Fund has declared a total distribution of RM0.2563 to date. We believe the Fund’s objective of providing investors with a steady income stream in the form of distribution has been met. Figure 1: Movement of the Fund versus the benchmark

“This information is prepared by the Manager for information purposes only. Past earnings or the Fund’s distribution record is not a guarantee or reflection of the Fund’s future earnings/future distributions. Investors are advised that Unit prices, distributions payable and investment returns may go down as well as up. Source of benchmark is from Bloomberg. ”

Benchmark: Maybank Overnight Repo Rate Table 1: Performance of the Fund

1 Year

(1/5/14 - 30/4/15)

3 Years (1/5/12 - 30/4/15)

5 Years (1/5/10 - 30/4/15)

Since Commencement

(14/6/05 - 30/4/15)

Fund 3.44% 9.94% 16.47% 36.69%

Benchmark 1.96% 5.66% 9.11% 24.13%

Outperformance 1.48% 4.28% 7.36% 12.56%


Table 2: Average Total Return

1 Year (1/5/14 - 30/4/15)

3 Years (1/5/12 - 30/4/15)

5 Years (1/5/10 - 30/4/15)

Since Commencement

(14/6/05 - 30/4/15)

Fund 3.44% 3.21% 3.09% 3.21%

Benchmark 1.96% 1.85% 1.76% 2.21%

Outperformance 1.48% 1.36% 1.33% 1.00%


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Table 3: Annual Total Return

1st Year

(14/6/05-30/4/06)

2nd Year (1/5/06-30/4/07)

3rd Year (1/5/07-30/4/08)

4th Year (1/5/08-30/4/09)

5th Year (1/5/09-30/4/10)

6th Year (1/5/10-30/4/11)

7th Year (1/5/11-30/4/12)

8th Year (01/5/12- 30/4/13)

9th Year (01/5/13- 30/4/14)

10th Year (01/5/14- 30/4/15)

Fund 2.55% 6.28% 2.17% 2.69% 2.63% 2.92% 2.93% 3.01% 3.18% 3.44%

Benchmark 2.69% 3.29% 3.20% 2.83% 1.03% 1.51% 1.72% 1.80% 1.80% 1.96%

Outperformance/ (Underperformance)

(0.14%) 2.99% (1.03%) (0.14%) 1.60% 1.41% 1.21% 1.21% 1.38% 1.48%


Basis of calculation and assumption made in calculating returns: The performance figures are a comparison of the growth/decline in NAV for the stipulated period taking into account all the distribution payable (if any) during the stipulated period.

An illustration of the above would be as follow:- Capital return = NAV per Unit end / NAV per Unit begin – 1 Income return = Income distribution per Unit / NAV per Unit ex-date Total return = Capital return x Income return - 1

Asset Allocation As at 30 April 2015, the asset allocation of the Fund stood at 31.87% in fixed income securities and 68.13% in cash and cash equivalents. For a snapshot of the Fund's asset mix during the period under review as at 30 April 2015, refer to Figure 2. Figure 2: Asset Mix of the Fund

30 April 2015 30 April 2014 30 April 2013

Fixed income securities 31.87% 74.67% 63.12%

Cash 68.13% 25.33% 36.88%

Total 100.00% 100.00% 100.00%

The Fund held higher deposits as at end April 2015 when compared to April 2014 as deposit rates improved. To maintain the lower volatility of the Fund, the Manager had also reduced its exposure into fixed income securities given the volatile market environment arising from the uncertainty surrounding the timeline for the US Federal Reserve’s rate hike move. Distribution

2015 2014 2013

Gross distribution per Unit (sen) 0.99 1.17 2.55

Net distribution per Unit (sen) 0.99 1.17 2.55

The Manager has declared a net distribution of RM0.0099 per Unit for Unit Holders of the Fund. All Unit Holders registered on 21 April 2015 will be eligible to receive this distribution.

Portfolio Turnover Ratio (PTR)

2015 2014 2013

PTR (times) 1.28 1.86 1.53

Note: The lower PTR in 2015 was mainly due to large increase of average NAV as the Fund almost doubled in size.

Past performance of the Fund is not an indication of its future performance

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7.2.2 Historical Financial Highlights

Audited Annual Statement of Income and Expenditure for the Three (3) Most recent Financial Years

2015 2014 2013 RM RM RM

Investment income 5,144,445 2,235,995 1,661,067 Expenses (705,546) (346,740) (272,605) Net income before taxation 4,438,899 1,889,255 1,388,462 Net income after taxation 4,438,899 1,889,255 1,384,846

Audited Annual Statement of Assets and Liabilities for the Three (3) Most Recent Financial Years

2015 2014 2013 RM RM RM

Total investment 46,147,997 42,600,011 31,623,255 Other assets 98,880,559 17,856,422 18,516,654

Total assets 145,028,556 60,456,433 50,139,909

Total liabilities 80,829 3,401,893 37,040

NAV/Unit Holders’ capital

144,947,727 57,054,540 50,102,869

Expenses incurred by the Fund as at 30 April 2015

Management Fee

Trustee Fee

Fund Expenses

Total Annual Expenses

RM % RM % RM % RM %

646,250 0.50 40,776 0.03 18,520 0.01 705,546 0.55

Management Expense Ratio (MER)

2015 2014 2013

MER 0.55 0.57 0.58

Note: There are no significant changes to the MER for the period under review.

The audited financial statements of the Fund are disclosed in the Fund’s annual report.

Past performance of the Fund is not an indication of its future performance.

The Fund’s annual report is available upon request.

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8 FEES, CHARGES AND EXPENSES The following are the charges that may be directly incurred by the Unit Holders of the Funds when purchasing or requesting a repurchase of Units of the Funds.

8.1 Sales Charge There is no Sales Charge imposed on the Investors for SCashF and EDF.

8.2 Repurchase Charge There will be no Repurchase Charge imposed on the repurchase of Units requested by Investors of both

Funds. 8.3 Switching Fee

There will be no switching fee applicable for both Funds. The Manager, however, retains the discretion to charge a switching fee up to a maximum of 1% of the NAV per Unit of the Funds.

* For Investors who invest through the EPF Members’ Investment Scheme (EMIS), they are not allowed to switch into any other funds managed by the Manager which are non-EMIS. Therefore, the Switching Fee is not applicable in this instance.

8.4 Transfer Fee

A RM5.00 transfer fee will be levied for each transfer of Units from one Unit Holder to another.

The following are the fees that may be indirectly incurred by the Unit Holders of the Funds when investing in the Funds.

8.5 Management Fee

The annual management fee is up to 0.50% per annum of the NAV of the Funds (before deducting the management fee and trustee fee). This fee is calculated and accrued daily and payable monthly to the Manager.

Please note that the example below is for illustration only:

Assuming that the total NAV (before deducting the management fee and the trustee fee) in the Fund is RM130 million. The calculation of annual management fee based on total NAV of the Fund is:

RM130,000,000 x 0.50% 365 days = RM 1,780.82 per day

8.6 Trustee Fee

The Trustee will be entitled to an annual trustee fee (including local custodian fee but excluding foreign sub-custodian fee, if any) of up to 0.05% per annum of the NAV of the Funds. In addition to the annual trustee fee which includes the transaction fee i.e. the fee incurred for handling purchase/sale of local investments, the Trustee may be reimbursed by the Funds for any expenses properly incurred by it in the performance of its duties and responsibilities. The trustee fee is accrued on a daily basis and paid monthly to the Trustee. Illustration:- Assuming that the NAV of the Fund is RM130 million for the day, the accrued trustee fee for that day would be:

RM130,000,000 x 0.05% 365 days = RM 178.08 per day

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8.7 Fund Expenses Only expenses (or part thereof) directly related and necessary in operating and administering the Funds may be paid out of the Fund. These include but are not limited to the following:- (a) Commissions/fees paid to brokers/dealers in affecting dealings in the investments of the Funds; (b) Charges/fees paid to custodian; (c) Tax and other duties charged on the Funds by the government and other authorities; (d) The fee and other expenses properly incurred by the auditor appointed for the Funds; (e) Fees for the valuation of any investments of the Funds by independent valuers for the benefit of

the Funds; (f) Cost incurred for the modification of the Deeds of the Funds other than those for the benefit of the

Manager or Trustee; (g) Cost incurred for any meeting of the Unit Holders other than those convened by, or for the benefit

of, the Manager or Trustee; and (h) Other fees/expenses related to the Funds as provided in the Deeds. Expenses related to the issuance of this Master Prospectus will be borne by the Manager.

8.8 Goods and Services Tax

The Royal Malaysian Customs Department has announced the implementation of GST with effect from 1 April 2015 onwards pursuant to the Goods and Services Tax Act 2014. Collective investment schemes are generally exempted from GST. However, some fees, charges and expenses of the Funds are subject to GST which includes: (a) Sales Charge; (b) Repurchase Charge; (c) Switching fee; (d) Transfer fee; (e) Management fee; (f) Trustee fee; and (g) Any other expenses of the Funds that may be subject to GST.

From 1 April 2015 onwards, the Manager, the Trustee and/or other service providers will charge GST at the rate of 6% on the abovementioned fees, charges and expenses in accordance with the Goods and Services Tax Act 2014. Investors should be aware that all fees, charges and expenses referred to or quoted in the Master Prospectus (including any supplemental master prospectus) and the Deed (including any supplemental deed) are referred to or quoted as being exclusive of GST.

8.9 Policy on Stockbroking Rebates and Soft Commissions The Manager or any delegate thereof will not retain any rebate or soft commission from, or otherwise share in any commission with, any broker/ dealer in consideration for directing dealings in the investments of the Funds. Accordingly, any rebate or shared commission will be directed to the account of the Funds. The soft commission can be retained by the Manager or any delegate thereof provided that the goods and services are of demonstrable benefit to the Unit Holders such as research materials, data and quotation services, financial wire services and investment related tools/publication which are incidental to the investment management activities of the Funds.

There are fees and charges involved and Investors are advised to consider them before investing in the Funds. All fees and charges payable by you are subject to all applicable taxes (including but not limited to goods and services taxes) and/or duties as may be imposed by the government and/or the relevant authorities from time to time. THE FEES, CHARGES AND EXPENSES QUOTED IN THE MASTER PROSPECTUS ARE EXCLUSIVE OF GST. FROM 1 APRIL 2015 ONWARDS, WE, THE TRUSTEE AND/OR OTHER SERVICE PROVIDERS WILL CHARGE GST AT THE RATE OF 6% ON THE ABOVEMENTIONED FEES, CHARGES AND EXPENSES IN ACCORDANCE WITH THE GOODS AND SERVICES TAX ACT 2014.

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9. SALE AND PURCHASE OF UNITS 9.1 Computation of NAV and NAV per Unit

Net Asset Value of the Funds is determined by deducting the value of the Funds’ liabilities from the value of the Funds’ assets, at the valuation point. For the purpose of computing the annual management fee and annual trustee fee, the NAV of the Funds shall be inclusive of the management fee and the trustee fee for the relevant day. Illustration:- For illustration purposes, we assume the following for a particular day:- Investments of the Fund = RM 110,000,000.00 Other Assets including cash = RM 50,000,000.00 Liabilities of the Fund = RM 30,000,000.00 Number of Units in Circulation = 200,000,000.00 Management Fee = RM 1,780.82 Trustee Fee = RM 178.08 The NAV of the Fund will be:-

RM

Investments 110,000,000.00

Add Other Assets 50,000,000.00

Total Assets 160,000,000.00

Less Liabilities 30,000,000.00

NAV (before deduction of the management fee and trustee fee for the day)

130,000,000.00

Less management fee for the day 1,780.82

trustee fee for the day 178.08

NAV (before GST) 129,998,041.10

Less GST of 6% on the management fee for the day 106.85

GST of 6% on the trustee fee for the day 10.68

NAV (after GST) 129,997,923.57

For the purpose of the illustration above, the computation of NAV and NAV per Unit are based on the assumption that the expenses are inclusive of GST. The NAV per Unit of the Fund will be:- NAV ÷ Units in Circulation = RM 129,997,923.57 ÷ 200,000,000 = RM0.6499896179 (before rounding adjustment)

= RM 0.6500 (rounded to four (4) decimal places for publication purposes)

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9.2 Pricing of Units Under a single pricing regime, the Selling Price and the Repurchase Price of the Funds shall be equivalent to the NAV per Unit of the Fund. Any applicable Sales Charge and Repurchase Charge shall be payable separately from the Selling Price and Repurchase Price of the Funds. SCashF – Historical Pricing The Manager uses a historical pricing policy to determine the Selling Price and Repurchase Price for this Fund. This means that for any purchase or repurchase request received or deemed to have been received via fax notifications with cleared payments by the Manager at or before 10.30a.m., the Units would be created based on the NAV per Unit as at the valuation point immediately before the purchase or repurchase request for Units is received by the Manager. Any purchase or repurchase request received or deemed to have been received after this cut-off time would be considered as being transacted on the next Business Day. The Manager will revalue the Fund’s assets at mid-day during the close of Bursa Malaysia on a Business Day and reprice the Units where the NAV per Unit of the Fund differs by more than 5% from the NAV per Unit as at the last valuation point. EDF – Forward Pricing The Selling Price and Repurchase Price for this Fund are based on Forward Pricing. For any purchase or repurchase request received or deemed to have been received, via fax notifications with cleared payments, by the Manager at or before 12.00 p.m., the Selling Price or Repurchase Price would be based on the NAV per Unit at the end of the Business Day on which the request is received by the Manager. Any purchase or repurchase 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. The Selling Price for Units of this Fund created under an EPF Members’ Investment Scheme shall be based on the NAV per Unit at the end of the Business Day on which the request for such Units complete with payments or other official confirmations from EPF on the approval of such payments are received by the Manager.

Incorrect Pricing Subject to any relevant laws, if there is an error in the pricing of the NAV per Unit of the Funds, the Manager will take immediate remedial action to correct the error. Rectification shall, where necessary, extend to the reimbursements of money as follows if the error is at or above the significant threshold of 0.5% of the NAV per Unit:-

(a) if there is an over pricing in relation to the purchase and creation of Units, the Funds shall

reimburse the Unit Holder; (b) if there is an over pricing in relation to the repurchase of Units, the Manager shall reimburse the

Funds; (c) if there is an under pricing in relation to the purchase and creation of Units, the Manager shall

reimburse the Funds; and (d) if there is an under pricing in relation to the repurchase of Units, the Funds shall reimburse the

Unit Holder or former Unit Holder. The Manager retains the discretion whether or not to reimburse if the error is below 0.5% of the NAV per Unit or where the total impact on an individual account is less than RM10.00 in absolute amount. This is because the reprocessing costs may be greater than the amount of the adjustment.

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Calculation of Selling Price Units will be sold at the NAV per Unit of the Funds. Any Sales Charge payable by the Unit Holder would be calculated as a percentage of the NAV per Unit of the Funds. For illustration purposes, assume the following: Amount invested : RM10,000.00 Sales Charge : Nil NAV per Unit : RM0.50 The investment amount, number of Units and Sales Charge payable by the Unit Holder are as follows:-

Items Formula Amount

Amount invested by Unit Holder - RM10,000.00

Number of Units Amount invested divided by NAV per Unit

= RM10,000/ RM0.50 20,000 Units

No Sales Charge on NAV per Unit Sales Charge x NAV per Unit x No. of Units

= 0% x RM 0.50 x 20,000 Units Nil

Total amount invested = RM 10,000.00 Add Sales Charge paid @ 0% of NAV per Unit = RM 0.00 Add GST (6% of RM0.00) = RM 0.00

Total amount paid by Unit Holder = RM 10,000.00

Calculation of Repurchase Price The Units will be repurchased at the NAV per Unit of the Funds. Any Repurchase Charge payable by the Unit Holder would be calculated as a percentage of the NAV per Unit of the Funds.

For illustration purposes, we assume the following:- Total of Units to be repurchased : 20,000 Units Repurchase Charge : Nil NAV per Unit : RM0.50

The net repurchase proceeds payable to the Unit Holder are as follows:-

Items Formula Amount

Total of Units repurchased - 20,000 Units

Amount repurchased by Unit Holder

Total Units repurchased x NAV per Unit = 20,000 x RM0.50

RM 10,000.00

No Repurchase Charge on the NAV per Unit

Repurchase Charge x Amount repurchased by Unit Holder

= 0% x RM10,000.00 RM0.00

Total amount repurchase = RM 10,000.00 Less Repurchase Charge @ 0% of NAV per Unit = RM 0.00 Less GST (6% of RM0.00) = RM 0.00

Total amount paid to Unit Holder = RM 10,000.00

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9.3 Sale of Units The minimum initial investments for the Funds are as follows:-

SCashF EDF


Institutional Unit Trust Advisers and unit trust consultants

RM 1,000,000* RM100,000* RM10,000*

The minimum additional investments for the Funds are as follows:-

SCashF EDF


Institutional Unit Trust Advisers and unit trust consultants

RM 500,000* RM50,000* RM10,000*

Investors can obtain the Master Prospectus, account opening form and investment application form from any of the sales offices or distribution points listed under Section 18 or from any of the Manager’s authorised agents. The Master Prospectus is also available at the Manager’s website at www.affinhwangam.com. The Funds’ application form can be handed directly to any of the sales offices or distribution points, or sent by mail, together with a cheque or bank draft made payable to “Affin Hwang Asset Management Berhad”. All cheques and bank drafts have to be crossed and drawn on a local bank. Bank charges, where relevant, for outstation cheques will be borne by the Investors. For first time Investors Individual or joint-application must be accompanied with a copy of the Investor’s identity card or passport or other document of identification. Application by a corporation must be accompanied with a certified true copy of its memorandum and articles of association, certificate of incorporation, form 24, form 44, form 49, the latest audited financial statement of the corporation and a resolution from its board of directors relating to the investment, a list of the corporations authorised signatories and specimen signature of the respective signatories. For EPF Members’ Investment Scheme Sale of Units will only be created upon the receipt of application to invest, by the Manager, complete with payments or other official confirmations from EPF on the approval of such payments.

9.4 Repurchase of Units

Unit Holders may request the Manager to repurchase Units on a Business day by simply completing the repurchase application form and returning it to the Manager at or before the following cut-off time:

SCashF EDF

10.30 a.m. 12.00 p.m.

Repurchase request must be made in terms of Units and not Ringgit Malaysia (RM) values. The amount to be received by the Unit Holders for the repurchase of Units will be calculated in the manner illustrated under Section 9.2 above. However, if the request to the Trustee to repurchase or cancel the Units results in the sale of assets of the Funds, or sale of assets which cannot be liquidated at an appropriate price or on adequate terms and is as such not in the interest of existing Unit Holders, the Trustee may refuse the said request.

9.5 Payment of Repurchase Proceeds

The Manager may repurchase Units by requesting the Trustee to cancel Units of the Funds for the purpose of meeting Unit Holders’ repurchase requests.


38

SCashF Client Portfolio Managers You will be paid on the next Business Day from the day we receive your repurchase request at or before the cut-off time of 10.30 a.m. on a Business Day and provided that all documentations are completed and verifiable. Institutional Unit Trust Advisers and unit trust consultants You will be paid within four (4) Business Days after the day we receive your repurchase request at or before the cut-off time of 10.30 a.m. on a Business Day and provided that all documentations are completed and verifiable. EDF You will be paid within four (4) Business Days after the day we receive your repurchase request at or before the cut-off time of 12.00 p.m. on a Business Day and provided that all documentations are completed and verifiable. Any repurchase request received after the cut-off time will be considered to be received on the next Business Day. For Unit Holders who invest through the EPF Members’ Investment Scheme, the Manager shall remit the repurchase proceeds to EPF for crediting back into the Investors’ EPF accounts respectively. For Unit Holders above the age of 55 years old and who invest through the EPF Member’s Investment Scheme, the Manager shall remit the repurchase proceeds to the said Unit Holders directly.

You can choose whether to receive the proceeds in a manner of cheque or telegraphic transfer. If cheque is chosen, it will be issued in your name. If telegraphic transfer is chosen, proceeds will be transferred to your bank account. Any incurred bank charges and other bank fees due to a withdrawal by way of telegraphic transfer, bank cheque or other special arrangement method is borne by you.

9.6 Repurchase Frequency and Minimum Units Repurchased For SCashF, there is no restriction on the frequency and the minimum number of Units for repurchase request; whereas for EDF, there is no restriction on the frequency for repurchase request but there is a minimum number of 10,000 Units requirement for each repurchase request. Nonetheless, the Manager shall not be bound to comply with the request for partial repurchase, if this request results in the Investor’s holding in the Funds being less than:-

SCashF EDF

Client Portfolio Managers Institutional Unit Trust Advisers and unit trust

consultants 500,000 Units* 50,000 Units* 10,000 Units*

If the repurchase request leaves an Investor with less than the minimum holdings, the Investor may be required to make an application for the Manager to repurchase all the Investor’s holding in the Funds.

9.7 Cooling-off Right and Cooling-off Period An Investor may exercise his Cooling-off Right within six (6) Business Days of the date of receipt of the application to purchase Units of the Funds by the Manager. A Cooling-off Right refers to the right of an Investor to obtain a refund of that Investor’s investment in the Funds if that Investor so requests within the Cooling-off Period. The Cooling-off Right is only given to an Investor, other than those listed below, who is investing in any unit trust funds managed by the Manager for the first time:- i. A corporation or institution; ii. A staff of the Manager; and iii. Persons registered with a body approved by the SC to deal in unit trusts.


39

An Investor who is entitled to the Cooling-off Right shall be refunded within 10 days of the date of receipt of the cooling-off application by the Manager. Investors who exercise their Cooling-off Rights will not be subject to any Repurchase Charge. The 6 Business Days Cooling-off Period shall begin on the day the application to invest is received by the Manager. The 6 Business Days cooling-off period for Investors purchasing Units though the EPF Member’s Investment Scheme, shall begin on the day the application to invest together with payments or other official confirmations from EPF on the approval of such payments are received by the Manager.

9.8 Switching Facility You are allowed to switch only between funds that are denominated in the same currency managed by us, subject to the terms and conditions applicable for the respective funds. Nonetheless, we are not bound to comply with the request for switching, if this request results in your holding in the Funds being less than the minimum Units held as stated in Section 9.6 above. Your switching application should be made before or by the following cut-off time on any Business Day:

SCashF EDF

10.30a.m. 12p.m.

A switch is processed as a withdrawal from the Funds and investment into another fund. You should note that the price of a fund to be switched out from and the price of a fund to be switched into may be that of different days. The table below sets out the pricing policy for switching for all our funds:

Switching Type Pricing Day

Switch out fund Upon application is received by the cut-off time on the same Business Day.

Switch in fund Upon payment is received by the intended fund on a Business Day.

If you wish to switch into another fund (e.g. fund A) and the Funds’ Sales Charge paid is less than the Sales Charge of fund A, you will need to pay the difference between the intended fund and the Fund. Conversely, no Sales Charge on fund A will be imposed on you, should it be less than or equal to the Sales Charge paid for the Funds. It is important to note that you are not entitled to any refund of the Sales Charge paid on the Fund being switched out, which exceeds that imposed on the intended fund to be switched into. We reserve the right to reject any switching request:- (i) that it regards as disruptive to efficient portfolio management; or (ii) if deemed to be contrary to the best interest of the Fund.

Note: If you invest in EDF through the EPF Members’ Investment Scheme (EMIS), you are only allowed to switch to any of our EPF approved funds.

9.9 Transfer Facility

You may transfer their ownership of Units in the Funds at any point in time by completing the transfer application form and returning it to us on any Business Day. Transfer must be made in terms of Units and not in Ringgit Malaysia (RM) value. A fee of RM5.00 will be charged for each transfer of ownership.

9.10 Methods of Transaction

(i) Unit Holders investing for the first time in the Funds MUST complete the application form accompanying this Master Prospectus and MUST submit the original form to the Manager or its authorised agent. The Manager shall not accept forms which are not original.

40

(ii) Unit Holders may, after satisfying (i) above, issue instructions or conduct any transactions permitted under the Deeds and this Master Prospectus either by facsimile or email or other modes acceptable by the Manager.

(iii) In order to use these methods, the Manager will require a clear mandate in the form of a board resolution passed by the board of directors of the Unit Holder where the Unit Holder is a corporation.

(iv) Any repurchase proceeds shall be paid back to the respective Unit Holders. If a Unit Holder wishes the Manager to pay to a third party, then, a clear mandate similar to the one in (iii), where the Unit Holder is a corporation or a letter of authorisation, where the Unit Holder is an individual, MUST be given to the Manager.

9.11 Where to Purchase and Repurchase Units

Units can be purchased and repurchased on any Business Day from Mondays to Fridays provided the Manager receives the application to purchase or repurchase at or before the following cut-off time:

SCashF EDF

10.30 a.m. 12.00 p.m.

However, for any application to purchase or repurchase which have been received by the Manager after the abovementioned cut-off time of the Funds, the Units will be deemed purchase or repurchase on the next Business Day. Units can be purchased and repurchased at any of the locations set out in our Directory of Sales Offices listed under Section 18.

9.12 Unclaimed Monies

Income distribution payout to the Unit Holders, if any, which remain unclaimed for six (6) months will automatically be reinvested into the Funds based on the prevailing NAV per Unit of the Funds. Redemption proceeds payable to Unit Holders who have requested for full or partial redemption of their investments in the Funds that remain unclaimed after twelve (12) months from the date of payment will be paid to the Registrar of Unclaimed Moneys by the Manager in accordance with the requirements of the Unclaimed Moneys Act 1965.

9.13 Anti-Money Laundering Policies and Procedures

Pursuant to the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001, it is the responsibility of the Manager to prevent the use of the Funds for money laundering and terrorism financing activities. To this end, the Manager has put in place anti-money laundering policies and procedures to combat such activities. Amongst others, prior to the Manager establishing or conducting business relations, particularly when opening new accounts for clients and entering into a fiduciary transaction with a client, the Manager will conduct a know your customer (KYC) procedures to identify and verify the client through documents such as identity card, passport, birth certificate, driver’s licence, constituent documents or any other official documents, whether in the possession of a third party or otherwise. Such documents shall be filed and retained by the Manager in accordance with relevant laws. The Manager will thereafter perform a customer due diligence (CDD) to identify the risk profile of each customer and will continuously monitor each customers risk profile should there be any changes. Enhanced customer due diligence (EDD) is performed on customers deemed as high risk and senior management’s approval is required before a business relationship or account is opened with such customers. Where the Manager suspects that a particular transaction may not be genuine, a suspicious transactions form (STF) shall be completed and the matter will be discussed with the senior management. If the senior management ascertains that there is a reasonable ground to suspect the transaction to be a money laundering or terrorism financing activity, a suspicious transaction report will then be submitted to the Financial Intelligence and Enforcement Department of Bank Negara Malaysia.

Investors are advised not to make payments in cash in respect of their investments when purchasing Units of the Funds via any institutional/retail agent.

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10. SALIENT TERMS OF THE DEEDS

Generally an Investor would also be a registered Unit Holder unless the Units are purchased through an IUTA or using a nominee. In such an instance, the Units may not be registered in the name of the Investor and thus not a registered Unit Holder. Please be advised that the Manager only recognises the rights attached to a registered Unit Holder.

10.1 Rights and Liabilities of Unit Holders 10.1.1 Rights of Unit Holders

A Unit Holder has the right, amongst others, to the following:- (a) To receive the distribution of income (if any), participate in any increase in the value of the Units

and to other such rights and privileges as set out under the Deed(s) for the Funds; (b) To call for Unit Holders’ Meetings, and to vote for the removal of the Trustee or the Manager

through a special resolution; (c) To exercise the cooling-off right (if applicable); and (d) To receive annual and interim reports. However, a Unit Holder would not have the right to require the transfer to the Unit Holder of any of the investments of the Funds. Neither would a Unit Holder have the right to interfere with or question the exercise by the Trustee or the Manager on his behalf, of the rights of the Trustee as the registered owner of the investments of the Funds.

10.1.2 Liabilities of Unit Holders

Except to the extent provided in the Deeds in respect of fees, charges and expenses, after full payment of the Selling Price of the Units held by him: (a) No Unit Holder shall incur or assume any liability or be required to make any payment to the

Trustee or Manager in respect of his Units; and (b) No further liability can be imposed on any Unit Holder in respect of such Units.

10.2 Provisions regarding Unit Holders’ Meetings 10.2.1 Quorum required for convening a Unit Holders’ Meeting

(a) The quorum required for a meeting of the Unit Holders shall be five (5) Unit Holders, whether present in person or by proxy. If a fund has five (5) or fewer Unit Holders, then the quorum required for a meeting of the Unit Holders in respect of that Fund shall be two (2) Unit Holders, whether present in person or by proxy.

(b) If a meeting of the Unit Holders in respect of a Fund requires a Special Resolution, then the quorum in relation to the Special Resolution shall be five (5) Unit Holders (or two (2) Unit Holders where that Fund have five (5) or fewer Unit Holders), whether present in person or by proxy, holding an aggregate of at least 25% of the Units in issue at the time of the meeting.

10.2.2 Unit Holders’ Meeting convened by the Unit Holders

The Unit Holders may summon a Unit Holders’ meeting, however the conditions for holding such a meeting and the notice period will be subject to SC requirements. The period of notice to Unit Holders will vary according to the reasons for summoning the meeting and, unless otherwise prescribed in the SC requirements, at least seven days’ notice of a meeting must be given to the Unit Holders. Unless otherwise required or allowed by the relevant laws, the Manager shall, within twenty-one (21) days of receiving a direction from not less than fifty (50) or one-tenth (1/10) of all the Unit Holders of the Fund at the registered office of the Manager, summon a meeting of the Unit Holders of that Fund by:-

(a) sending by post at least seven (7) days before the date of the proposed meeting, a notice of the proposed meeting to all the Unit Holders;

(b) publishing at least fourteen (14) days before the date of the proposed meeting, an advertisement giving notice of the proposed meeting in a national language newspaper published daily and another newspaper approved by the relevant authorities; and

42

(c) specifying in the notice the place and time of the meeting and the terms of the resolutions to be proposed at the meeting.

The Unit Holders of the Fund may direct the Manager to summon a meeting for any purpose including, without limitation, for the purpose of:- (a) requiring the retirement or removal of the Manager; (b) requiring the retirement or removal of the Trustee; (c) considering the most recent financial statements of that Fund; (d) giving to the Trustee such directions as the meeting thinks proper; or (e) considering any matter in relation to the Deed.

provided always that the Manager shall not be obliged to summon such a meeting unless direction has been received from not less than fifty (50) or one-tenth (1/10) of all the Unit Holders of that Fund.

10.2.3 Unit Holders’ Meeting convened by the Manager

The Manager may summon a Unit Holders’ meeting, however the conditions for holding such a meeting and the notice period will be subject to SC requirements. The period of notice to Unit Holders will vary according to the reasons for summoning the meeting and, unless otherwise prescribed in the SC requirements, at least seven days’ notice of a meeting must be given to the Unit Holders. Unless otherwise required or allowed by the relevant laws, the Manager may summon a meeting of Unit Holders for any purpose whatsoever by:

(a) giving at least fourteen (14) days written notice of the meeting to Unit Holders; and (b) specifying in the notice the place and time of the meeting and the terms of the resolutions to be

proposed at the meeting.

10.2.4 Unit Holders Meeting convened by the Trustee The Trustee may summon a Unit Holders’ meeting, however the conditions for holding such a meeting and the notice period will be subject to SC requirements. The period of notice to Unit Holders will vary according to the reasons for summoning the meeting and, unless otherwise prescribed in the SC requirements, at least seven days’ notice of a meeting must be given to the Unit Holders.

Unless otherwise required or allowed by the relevant laws, the Trustee shall summon a Unit Holders' meeting by:

(a) sending by post at least twenty-one (21) days before the date of the proposed meeting a notice of

the proposed meeting to each of the Unit Holders at the Unit Holder’s last known address or, in the case of Jointholders, to the Jointholder whose name stands first in the records of the Manager at the Jointholder’s last known address; and

(b) publishing at least twenty-one (21) days before the date of the proposed meeting an advertisement giving notice of the meeting in a national language newspaper published daily and another newspaper approved by the relevant authorities;

where:

(a) the Manager is in liquidation, (b) in the opinion of the Trustee, the Manager has ceased to carry on business, or

(c) in the opinion of the Trustee, the Manager has, to the prejudice of Unit Holders, failed to comply with this Deed or contravened any of the provisions of the Act.

However, the Manager or the Trustee shall not exercise the right to vote in respect of any shares forming part of the investments of the unit trust fund to which the deed relates, which is held by the Trustee, in any election for the appointment of any director of a corporation whose shares are so held, without the consent of the majority of the Unit Holders to which the Deed related, voting at a meeting of those Unit Holders summoned for the purpose of the exercise of the right to vote at the next general meeting of the corporation.

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10.3 Termination of the Funds 10.3.1 Circumstances that may lead to the termination of the Funds

The Funds may be terminated or wound up upon the occurrence of any of the following events:-

(a) The Manager notifies the Trustee that the Fund is to terminate and specifies the date of termination;

(b) Where the Manager has gone into liquidation, except for the purpose of reconstruction or amalgamation unless during or following such reconstruction or amalgamation the Manager becomes or is declared to be insolvent upon terms previously approved in writing by the Trustee and the SC;

(c) Where in the reasonable opinion of the Trustee, the Manager has ceased to carry on business; or (d) Where in the reasonable opinion of the Trustee, the Manager has to the prejudice of the Unit

Holders failed to comply with any provisions or covenants of the Deed or contravene any provisions of the Act.

Upon the occurrence of any of the above events, the Trustee shall summon a Unit Holders meeting and if a Special Resolution is passed for the Fund to be wound up, the Trustee shall then apply to the Court for an order confirming the resolution.

10.3.2 Procedure for the termination of the Funds Upon the termination of a Fund, the Trustee shall:-

(a) as soon as practicable give notice of such termination to the Unit Holders of that Fund; (b) sell all investments and assets of that Fund then remaining in its hands and pay out of that Fund

any liabilities of that Fund; such sale and payment shall be carried out and completed in such manner and within such period as the Trustee considers to be in the best interests of the Unit Holders of that Fund; and

(c) distribute to the Unit Holders of that Fund in proportion to the number of Units held by them respectively, the net cash proceeds available derived from the sale of the investments and assets of that Fund less any payments for liabilities of that Fund provided always that the Trustee shall not be bound, except in the case of final distribution, to distribute any of the moneys for the time being in his hands the amount of which is insufficient to pay RM1.00 in respect of each Units and provided also that the Trustee shall be entitled to retain out of any such moneys in his hands, full provision for all costs, charges, taxes, expenses, claims and demands incurred, made or apprehended by the Trustee in connection with or arising out of the moneys so retained to be indemnified and save harmless against such costs, charges, taxes, expenses, claims and demands; each such distribution shall be made only against the production of such evidence as the Trustee may require to prove the title of the Unit Holder relating to the Units in respect of which the same is made.

In the event of that Fund being terminated, the Trustee shall be at liberty to call upon the Manager to grant and the Manager shall give a full and complete release of the Trustee from and to the Deed in respect of that Fund and the Manager shall indemnify the Trustee against any claims arising out of the Trustee's proper execution of the Fund provided that such claims are not caused by the Trustee’s default, wilful misconduct or failure to show the degree of care and diligence required of a trustee as contemplated by the Deed, the Act , the Guidelines and all other relevant laws.

10.4 The maximum fees and charges that may be imposed by the Manager and the steps to be taken by the Manager to increase such fees and charges

10.4.1 Maximum rate of Indirect Fees permitted by the Deeds

Maximum annual management fee SCashF & EDF – 3% per annum of the NAV of the Fund.

Maximum annual trustee fee SCashF & EDF – 0.3% per annum of the NAV of the Fund.

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10.4.2 Maximum Rate of Direct Charges permitted by the Deeds

Maximum Sales Charge: SCashF & EDF – 5% of the NAV per Unit.

Maximum Repurchase Charge SCashF & EDF – 5% of the amount repurchased.

10.4.3 Procedures to be taken to increase the Direct Charges and Indirect Fees from the current amount

stipulated by the Master Prospectus

Sales Charge The Manager may charge a higher Sales Charge than that disclosed in the Master Prospectus provided that: a) the Manager has notified the Trustee in writing of the higher Sales Charge and its effective date;

b) a supplementary or replacement Master Prospectus stating the higher Sales Charge is issued thereafter; and

c) the period stipulated in the SC requirements for this purpose from the issue of the new or supplementary or replacement Master Prospectus has lapsed.

Repurchase Charge The Manager may charge a higher Repurchase Charge than that disclosed in the Master Prospectus provided that: a) the Manager has notified the Trustee in writing of the higher Repurchase Charge and its effective

date;

b) a supplementary or replacement Master Prospectus stating the higher Repurchase Charge is issued thereafter; and

c) the period stipulated in the SC requirements for this purpose from the issue of the new or supplementary or replacement Master Prospectus has lapsed.

Annual Management Fee The Manager may only fix a higher percentage of management fee than that disclosed in the Master Prospectus provided that and unless: a) the Manager has come to an agreement with the Trustee on the higher rate of management fee and

its effective date;

b) the Manager has notified the Trustee and the Unit Holders of the higher rate of the annual management fee and its effective date;

c) a supplementary or replacement Master Prospectus stating the higher management fee is issued thereafter; and

d) the period stipulated in the SC requirements for this purpose from the issue of the new or supplementary Master Prospectus has elapsed.

Annual Trustee Fee Unless otherwise required or allowed by the relevant laws, the Trustee may not charge an annual trustee fee at a rate higher than that disclosed in the Master Prospectus unless: a) the Trustee has come to an agreement with the Manager on the higher rate of trustee fee and its

effective date;

b) the Manager has notified the Unit Holders of the higher trustee fee and its effective date; and

c) a supplemental or replacement Master Prospectus stating the higher rate trustee fee is issued thereafter; and

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d) the period stipulated in the SC requirements for this purpose from the issue of the new or supplementary Master Prospectus has elapsed.

10.4.4 Procedures to be taken to increase the Direct Charges and Indirect Fees from the current amount

stipulated by the Deeds

The maximum Sales Charge, Repurchase Charge, annual management fee or annual trustee fee set out in the Deeds can only be increased if a Unit Holders' Meeting has been held in accordance with the Deeds. Thereafter, supplemental deeds proposing a modification to the Deeds to increase the aforesaid maximum charges and fees is required to be submitted for registration with the SC accompanied by a resolution of not less than two-thirds (2/3) of all Unit Holders present and voting at the Unit Holders' Meeting sanctioning the proposed modification to the Deeds.

10.4.5 Other Expenses permitted under the Deeds

Only the expenses (or part thereof), which are directly related and necessary to the business of the Funds are payable or reimburseable out of the assets of the Fund. These include (without limitation) expenses connected with:-

(a) commissions/fees paid to brokers/ dealers in effecting dealings in the investments of the Funds, shown on the contract notes or confirmation notes;

(b) taxes and other duties charged on the Funds by the Government and other authorities and bank fees;

(c) fees and other expenses properly incurred by the auditor appointed for the Funds;

(d) fees for the valuation of any investment of the Funds by independent valuers;

(e) costs incurred for the modification of these Deeds otherwise than for the benefit of the Manager;

(f) costs, commissions, fees and expenses of the sale, purchase, insurance and any other dealing with the assets of the Funds;

(g) costs involved with external specialists approved by the Trustee in investigating and evaluating any proposed investment;

(h) costs, fees and expenses relating to the engagement of valuers, advisers and contractors of all kinds for the benefit of the Funds;

(j) all costs, fees and expenses connected with the preparation and audit of the taxation returns and accounts of the Funds;

(j) all costs, fees and expenses in or in connection with the termination of the Funds and the retirement or removal of the Trustee or Manager and the appointment of a new Trustee or Manager;

(k) all costs, fees and expenses in relation to any dispute concerning the Funds or any asset of the Funds, including proceedings against the Trustee or the Manager by the other of them for the benefit of the Funds (except to the extent that legal costs incurred for the defence of either of them are not ordered by the court to be reimbursed out of the Funds);

(l) expenses incurred by the Trustee and the Manager in the performance of its duties and responsibilities hereunder;

(m) remuneration and out of pocket expenses of the independent members of the investment committee, unless the Manager decides otherwise;

(n) all costs, fees and expenses incurred in convening and holding meetings of the Unit Holders otherwise than for the benefit of the Manager and the Trustee; and

(o) all fees and expenses deemed by the Manager to have been incurred in connection with any change or compliance with any change or introduction of any law, regulation or requirement (whether or not having the force of law) of any governmental or regulatory authority.

The Trustee must ensure that all expenses charged to the Funds are legitimate and that the quantum of the expense charged is not excessive or beyond standard commercial rates.

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10.5 Retirement of the Manager (a) The Manager shall retire, if so, required by the Trustee, on the ground that:-

(i) a Special Resolution to that effect has been passed by the Unit Holders of that Fund at a meeting called for that purpose;

(ii) the Manager has failed or neglected to carry out its duties to the satisfaction of the Trustee and the Trustee considers that it would be in the best interests of Unit Holders of that Fund for it to do so after the Trustee has given notice to it of that opinion and the reason for that opinion, and has considered any representations made by the Manager in respect of that opinion, and after consultation with the SC and with the approval of Unit Holders of that Fund; or

(iii) the Manager has gone into liquidation, except for the purpose of amalgamation or reconstruction or some similar purpose unless during or following such reconstruction the Trustee becomes or is declared to be insolvent, or has had a receiver appointed or has ceased to carry on business;

and the Manager shall not accept any extra payment or benefit in relation to such retirement. In any of the event set out in paragraph (a), the Manager shall upon receipt of a written notice from the Trustee setting out any of the above grounds, immediately ceases to be the Manager.

(b) the Manager may also retire in relation to a Fund by giving twelve (12) months’ notice to the Trustee or such lesser time as the Manager and the Trustee may agree upon.

(c) in the event of a merger between the Manager and a third party (the “Third Party”), or transfer

of the business of the Manager to a third party, the Manager shall give prior written notice thereof to the Trustee and the SC. Subject to the Manager and the Third Party having obtained all necessary regulatory approvals in relation thereto, in the event the Third Party acquires the business of the Manager, the Manager may retire in the capacity as manager of the Fund and the Third Party be appointed in its stead as manager of the Fund upon completion of the merger or transfer of business transaction without having to obtain the consent of any class of Unit Holders.

10.6 Duty of the Manager to replace the Trustee

The Manager shall take all reasonable steps to replace the Trustee as soon as practicable after becoming aware that:- (a) The Trustee has ceased to exist;

(b) The Trustee has not been validly appointed;

(c) The Trustee is not eligible to be appointed as trustee according to the SC requirements;

(d) The Trustee has failed or refused to act as trustee in accordance with the provisions or covenants of the Deeds or the SC requirements;

(e) A receiver is appointed over the whole or a substantial part of the assets or undertakings of the Trustee and has not ceased to act under that appointment, or a petition is presented for the winding up of the existing Trustee (other than for the purpose of and followed by a reconstruction, unless during or following such reconstruction the existing Trustee becomes or is declared to be insolvent); or

(f) The Trustee is under investigation for conduct that contravenes the Trust Companies Act 1949, the Trustee Act 1949, the Companies Act 1965 or any securities law.

10.7 Retirement of the Trustee

(a) The Trustee must retire as trustee of the Funds when it is required to retire by law.

(b) The Trustee may retire as trustee of the Funds upon giving 12 months’ notice to the Manager of its desire so to do or such shorter period as the Manager shall agree, and may by Deeds appoint in its stead or as an additional trustee a new trustee approved by the relevant authorities and under any relevant law.

(c) The Trustee covenants that it will retire as trustee of the Funds if and when requested to do so by the Manager if:-

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(i) the Trustee shall go into liquidation (except for the purpose of amalgamation or reconstruction or some similar purpose unless during or following such amalgamation or reconstruction the Trustee becomes or is declared to be insolvent) or if a receiver or receiver and manager shall be appointed over the undertakings of the Trustee or any part thereof;

(ii) if the Trustee ceases to carry on business;

(iii) the Trustee ceases to be approved by the SC to be a trustee for unit trust fund or the Funds; or

(iv) the Manager is required to replace the Trustee in compliance with its obligations pursuant to the SC requirements.

(d) the Trustee further covenants to the Unit Holders and the Manager that it will retire as trustee of

the Fund if a Special Resolution to that effect has been passed by the Unit Holders of that Fund at a meeting called for that purpose or deemed passed in accordance with the provisions of the Deeds.

(e) the Trustee shall continue to act as trustee of the Funds until a new trustee is appointed and taken office.

10.8 Replacement of the Manager

On its retirement, the Manager may appoint in writing another corporation to be the manager of the Funds, subject to the approval of the Trustee and any approval required by the SC requirements. If the Manager does not propose a replacement at least 30 days before the Manager proposes to retire or the Trustee does not approve of the replacement proposed by the Manager, the Trustee may appoint a new manager as of the date of the proposed retirement. An appointment is not complete until the new manager executes a deed by which it covenants to be bound by this Deed and its appointment as manager of the Fund has been approved by the SC.

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11. CLIENT COMMUNICATION

Unit Holders will/can receive regular updates on the Funds and on their investments through:- (a) Newspapers

Unit Holders will be able to obtain information pertaining to the Funds from the press. The latest NAV per Unit of each Fund will be quoted in at least two (2) major daily newspapers to enable the Unit Holders to monitor their investments.

(b) The Manager’s Company Website

Unit Holders will be able to obtain information pertaining to each Fund from the Manager’s company website at www.affinhwangam.com. Each Fund’s daily NAV per Unit will be quoted in the website to enable Unit Holders to monitor their investments.

(c) Financial Reports

The Manager will provide the Unit Holders of each Fund with an annual report within 2 months of the Funds’ financial year-end and an interim report within 2 months of the end of the financial period covered. A financial statement audited by the Funds’ appointed auditors will be included in the annual report. The Trustee will prepare the report to Unit Holders in both the annual and interim reports stating its opinion on the conduct of the Manager, in particular whether the Manager managed the Funds in accordance with the limitation imposed on its investment powers as set out in the Deeds, and whether the Manager had acted in accordance with the Deeds, Guidelines, securities laws and other relevant laws.

(d) Statement of Accounts

The Manager will issue a monthly statement to the Unit Holders of each Fund confirming the current Unit holdings and transactions relating to their Units in each Fund.

(e) Customer Service

Unit Holders can seek assistance from the Manager’s customer service personnel at the Manager’s office or its sales office at any location listed in Section 18 during the stated office hours. Alternatively, the Unit Holders can communicate via the Manager’s toll free number at 1-800-88-7080 or email the Manager at [email protected].

How do I make a complaint? (i) For internal dispute resolution, please contact our customer service personnel at any of our offices

listed in Section 18 of this Master Prospectus during the stated office hours (8.45a.m.–5.30p.m). Alternatively, you can email to [email protected].

Complaints should be made in writing with the following information: (a) particulars of the complainant which include name, correspondence address, contact number,

e-mail address (if any) and other relevant information; (b) circumstances of the non-compliance or improper conduct; (c) parties alleged to be involved in the improper conduct; and (d) other supporting documentary evidence (if any).

(ii) If you are dissatisfied with the outcome of the internal dispute resolution process, please refer your

dispute to the following regulatory bodies, details of which are as follows:

Federation of Investment Managers Malaysia (FiMM): (a) via email to : [email protected] (b) via online complaint form : www.fimm.com.my (c) via letter to : Complaints Bureau

Legal, Secretarial & Regulatory Affairs Federation of Investment Managers Malaysia 19-06-1, 6

th Wisma Tune

No. 19, Lorong Dungun Damansara Heights, 50490 Kuala Lumpur.


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OR

Securities Industry Dispute Resolution Corporation (SIDREC): (a) via phone to : 03-2282 2280 (b) via fax to : 03-2282-3855 (c) via email to : [email protected] (d) via letter to : Securities Industry Dispute Resolution Center

(SIDREC) Unit A-9-1 Level 9, Tower A Menara UOA Bangsar No. 5, Jalan Bangsar Utama 1 59000 Kuala Lumpur

(iii) You can also direct your complaint to the SC even if you have initiated a dispute resolution process

with SIDREC. You can lodge a complaint to the SC by contacting the SC’s Investor Affairs & Complaints Department, details of which are as follows: (a) via phone to the Aduan Hotline at : 03 – 6204 8999 (b) via fax to : 03 – 6204 8991 (c) via e-mail to : [email protected] (d) via online complaint form available at www.sc.com.my (e) via letter to : Investor Affairs & Complaints Department

Securities Commission Malaysia No 3 Persiaran Bukit Kiara Bukit Kiara 50490 Kuala Lumpur

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12. THE MANAGER 12.1 Background Information

The Manager was incorporated in Malaysia on 2 May 1997 under the Companies Act 1965 and began its operations under the name Hwang–DBS Capital Berhad in 2001. In early 2014, the Manager was acquired by the Affin Banking Group (“Affin”) and hence, is now supported by a home-grown financial services conglomerate. Affin has over 39 years of experience in the financial industry which focuses on commercial, Islamic and investment banking services, money broking, fund management and underwriting of life and general insurance business. Meanwhile, the Manager has 15 years’ experience in the fund management industry. Additionally, the Manager is also 30% owned by Nikko Asset Management International Limited, a wholly-owned subsidiary of Tokyo-based Nikko Asset Management Co. Ltd, an Asian investment management franchise.

The Manager distributes its funds through the following various channels: (i) In-house/internal sales team; (ii) IUTA & CUTA (Corporate Unit Trust Advisers); and (iii) Unit trust consultants. The Manager’s head office is located in Kuala Lumpur and has a total of 8 main sales offices located in Peninsular and East Malaysia. The sales offices are in Penang, Ipoh, Johor Bharu, Melaka, Selangor, Kuching, Miri and Kota Kinabalu. Milestones As at LPD, the Manager has in its stable a total of 45 unit trust funds and 48 wholesale funds, offering a complete and essential range of products, comprising conventional equity, balanced, bond, money market, capital guaranteed, capital protected, global, structured and feeder funds, as well as Islamic equity, Islamic money market and Islamic fixed income funds. As at 31 December 2015, the total AUM, comprising in-house unit trust funds as well as corporate and discretionary portfolios stood at approximately RM31.6 billion. As at LPD, the Manager has a staff force of 286, of whom 266 are executives and 20 are non-executives.

12.2 Roles, Duties and Responsibilities of the Manager The Manager is responsible for the investment management and marketing of the Fund, servicing Unit Holders’ needs, keeping proper administrative records of Unit Holders and the Funds, ensuring compliance with stringent internal procedures and guidelines of relevant authorities.

12.3 Financial Position

1 January 2015 to 31 December

2015 (RM)

Unaudited

Financial Year Ended

31 December 2014 (RM)

Audited

31 July 2013 (RM)

Audited

31 July 2012 (RM)

Audited

Turnover 228,532,458 291,436,031 183,948,110 111,904,655

Profit Before Tax & Zakat 57,032,518 71,274,997 40,159,749 23,045,297

Profit After Tax & Zakat 42,106,553 53,357,719 31,394,865 18,675,603

Issued/Paid-up Capital 10,000,000 10,000,000 10,000,000 10,000,000

Shareholders’ Fund 114,250,129 99,665,916 79,481,517 53,127,381

12.4 Role of Directors

The Board is responsible for the overall management of the Manager and its funds. The Board not only ensures corporate governance is practised but policies and guidelines are adhered to. The Board will sit at least four (4) times every year, or more should the need arise.

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12.4.1 Board of Directors Tan Sri Dato’ Seri Che Lodin Bin Wok Kamaruddin (Non-independent Director) Puan Maimoonah Binti Mohamed Hussain (Non-independent Director) YBhg Mej Jen Dato’ Hj Latip Bin Ismail (Independent Director) Mr Teng Chee Wai (Non-independent Director) Mr David Jonathan Semaya (Non-independent Director) Encik Abd Malik Bin A Rahman (Independent Director)

12.5 Role of the Investment Committee The investment committee (“Committee”) formulates, establishes and implements investment strategies and policies. The Committee will continuously review and monitor the success of these strategies and policies using predetermined benchmarks towards achieving a proper performance for the Funds. The Committee will also ensure investment guidelines and regulations are complied with. The Committee meets at least once every quarterly or more should the need arise.

12.5.1 The Investment Committee Members Dato’ V Danapalan (Chairman, Independent member) Dato' V. Danapalan holds a B.A. (Hons) from University Malaya and Masters in Public Administration from Pennsylvania State University, United States of America. He was previously the chairman of the Malaysian Communications and Multimedia Commission (MCMC) until his retirement in March 2006. Prior to joining MCMC, he was a senior vice-president at the Multimedia Development Corporation Sdn. Bhd. Before this, he was the secretary-general at the Ministry of Science, Technology and Environment, a position he held from 1991 to 1998. He currently serves on the board of Malaysia University of Science and Technology (MUST), Multimedia University (MMU), Sirim QAS Sdn. Bhd., Gibraltar BSN Life Insurance, Telekom Malaysia Berhad, Maybank Foundation and Tun Sambanthan Scholarship Board.

Puan Maimoonah Binti Mohamed Hussain (Non-independent member) Puan Maimoonah Binti Mohamed Hussain graduated from University of Singapore with a Bachelor of Accountancy and was the director, debt & capital markets of Affin Bank Berhad prior to her appointment as managing director at Affin Investment Bank Berhad. Prior to this, she had been the head of syndications at Standard Chartered Bank’s debt syndications business for Malaysia, Singapore, Thailand, Indonesia and the Philippines. She was also seconded to Standard Chartered Bank Malaysia Berhad for three years to develop the local as well as cross border debt business. She was prior thereto attached to Morgan Grenfell (Asia) Ltd where she was involved in structured finance and project advisory across South East Asian markets. She also serves as a director on the board of Affin Hwang Investment Bank Berhad, Merchant Nominees (Tempatan) Sdn Bhd and Affin Nominees (Asing) Sdn Bhd.

Mr. Ong Teng Chong (Non-independent member) Mr. Ong is currently the head of institutional business (securities division) at Affin Hwang Investment Bank. Graduated with a Bachelor of Commerce Degree majoring in accounting and finance from Monash University (Clayton campus, Australia), Mr. Ong has around 20 years of working experience in the investment banking industry, specializing in investment research. Mr. Ong has worked at a number of investment banks in Malaysia with the last six years leading the research and analytics department of the bank before taking the role of head of institutional business (securities division) in January 2014. As head of research, Mr. Ong has led the overall research team's improvement in rankings - both clients and external surveys. In the category of equity strategy under his direct coverage, Mr. Ong has ranked well in the AsiaMoney Brokers Polls over the last few years. In addition, Mr. Ong was ranked amongst the top 20 analysts in Malaysia in AsiaMoney Brokers Polls. As head of institutional business, his primary focus today is on building the bank's institutional brokerage business as well as providing advisory role to the bank's research and analytics team.

En. Mohammad Aminullah Bin Basir (Independent member) Encik Mohammad Bin Aminullah Basir is an independent member of the investment committee for the Fund. He has vast experience in matters relating to collective investment schemes from his long serving tenure in the SC. Encik Aminullah retired as the deputy general manager and head of investment products in the corporate finance and investment division, after serving for 20 years covering various aspects of the capital market industry such as corporate finance (e.g. initial public offerings, acquisitions and mergers), collective investment schemes (e.g unit trust funds, real estate investment trusts, exchange

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traded funds, business trusts) and Private Retirement Scheme. He started his career as an auditor with Ivor Barry and Co, a firm of Chartered Accountants in United Kingdom before returning to Malaysia as an internal auditor with Sime Darby Berhad. Encik Aminullah is a Fellow of the Association of Chartered Certified Accountants (ACCA), a Chartered Accountant with the Malaysian Institute of Accountants and he is also a certified member of Financial Planning Association of Malaysia (FPAM). Phuah Eng Chye (Independent member) Mr. Phuah was previously the senior general manager and the head of the strategy & research department at the SC. For a period of 10 years, he was involved in various capital market development and regulatory projects and led the project team that developed the Capital Market Masterplan 2. Prior to joining the SC, he was a regional bank analyst with Dresdner Kleinwort Benson where he was ranked among the top banking analysts in South East Asia. He was also head of Malaysian equities research for PB Securities and K&N Kenanga. He also previously worked as a remisier, a fund manager and as a financial journalist. He graduated with a degree in economics from the University of Manchester, United Kingdom in 1981.

12.6 The Team 12.6.1 The Investment Team

The investment team comprises a group of portfolio managers (eight (8) personnel from fixed income team and thirteen (13) personnel from equity team) who possess the necessary expertise and experience to undertake the fund management of its unit trust funds. The investment team is assisted by eight (8) research analyst.

Mr. Teng Chee Wai – Managing Director Mr. Teng is the founder of the Manager. Over the past 15 years, he has built the company to its current position with an excess of RM 20 billion in assets under management. In his capacity as the managing director and executive director of the Manager, Mr. Teng manages the overall business and strategic direction as well as the management of the investment team. His hands on approach sees him actively involved in investments, product development and marketing. Mr. Teng’s critical leadership and regular participation in reviewing and assessing strategies and performance has been pivotal in allowing the Manager to successfully navigate the economically turbulent decade. Mr. Teng’s investment management experience spans more than 25 years, and his key area of expertise is in managing absolute return mandates for insurance assets and investment-linked funds in both Singapore and Malaysia. Prior to his current appointments, he was the assistant general manager (investment) of Overseas Assurance Corporation (OAC) and was responsible for the investment function of the Group Overseas Assurance Corporation Ltd. Mr. Teng began his career in the financial industry as an investment manager with NTUC Income, Singapore. He is a Bachelor of Science graduate from the National University of Singapore and has a Post-Graduate Diploma in Actuarial Studies from City University in London. Mr. David Ng Kong Cheong – Chief Investment Officer Mr David joined the Manager in 2002 as Head of Equities and assumed the role of Chief Investment Officer in September 2006. He has been responsible for successfully steering the Manager’s investments through a tumultuous decade of multiple crisis. His astute and decisive guidance on broad investment strategies which includes interpreting market signals and making timely asset allocation calls has allowed the Manager to remain ahead of its peers. A decade later, he has built the investment team from just four (4) fund managers to a 40 strong group featuring an impressive resume across different investment specialties, coverage and geographies. Under his foresight and vision, the team has evolved from being equity-heavy to encompass strong local and regional multi-asset and sector investment capabilities. His absolute return investment philosophy and bottom-up stock selection technique has garnered recognition for the Manager with its multiple award wins, having been voted “CIO of the Year” for Malaysia by Asia Asset Management 2013 awards. Mr David’s philosophy of subscribing to the long-term, not taking excessive risk, and investing into quality throughout all the portfolios has set the blueprint for the Manager’s investments in years to come. He is well-known in the industry for his discipline, prudence and reasonable attitude to investing. He graduated with a double degree in Bachelor of Commerce (Accounting) and Bachelor of Law from Monash University in Melbourne, Australia and is also a Chartered Financial Analyst (CFA) charterholder.

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Ms Esther Teo Keet Ying – Head, Fixed Income Investment Ms Esther Teo is the Head of Fixed Income Investment. Prior to joining the Manager, Esther Teo was a portfolio manager with HwangDBS Asset Management and was responsible for managing fixed income investment of corporate clients and unit trust funds. Prior to this, she was attached with the fixed income division of RHB Asset Management Sdn. Bhd. covering both institutional and unit trust mandates for 3 years. She began her career in KPMG Malaysia in 1999 as a consultant in financial advisory services specializing in corporate debt restructuring and recovery. Ms Esther graduated from the University of Melbourne, Australia with a Bachelor of Commerce majoring in Accounting and Finance. She has also obtained her licence from the SC since 29 April 2004 to act as a fund manager. She is the designated fund manager for the Funds. Mr Gan Eng Peng – Head of Equity Strategies & Advisory Mr Gan Eng Peng joined the Manager in April 2008 as Head of Equities, bringing with him more than 20 years of experience in regional and local equities investment, corporate finance and business management. His high-conviction, bottom-up approach to stock picking that emphasizes competitive business models with quality management combined with the need for yearly income generation has gained a strong industry following. He is known for his clear, concise articulation of his investment ideas. He is the portfolio manager for the Manager’s world-class, 5-star (Morningstar*) Affin Hwang Select Asia Quantum Fund, a small-cap Asian equity strategy, as well as the Manager’s first flagship fund, the Affin Hwang Select Opportunity Fund. His current role as Head of Equity Strategies & Advisory is to devote his time to finding new ideas, in addition to maintaining portfolio management responsibilities. Prior to joining the Manager, Mr Gan was the Head of Equities of Investments at Pacific Mutual Fund Berhad where he led an experienced fund management team. Mr Gan had overall responsibility for all their funds across the board. His role involved being responsible for all equity fund performance, research initiatives and providing marketing support. Mr Gan graduated with a Bachelor of Science (Industrial and Business Economics) from the London School of Economics, England. *Source data: http://my.morningstar.com/ap/fundselect/results.aspx as at 29 July 2015.

12.6.2 Key Personnel of the Management Team Mr. Teng Chee Wai – Managing Director (Please refer to 12.6.1) Mr. David Ng Kong Cheong – Chief Investment Officer (Please refer to 12.6.1) Ms. Peggy Liew Li Choo – Chief Operating Officer Ms Peggy Liew is currently the Chief Operating Officer of the Manager. She joined the Manager in July 2008 as Head of Operations. Ms Peggy brings with her more than 25 years of work experience in various industries, of which 20 years of her professional experience have been in the capital market industry. Prior to joining the Manager, Ms Peggy spent seven years in Prudential Fund Management Berhad as the Head of Operations and six years in HLB Unit Trust Management overseeing fund valuations, sales and office administration as well as the operational activities within the company. She holds certifications from the Chartered Institute of Marketing (CIM).

Ms Esther Thye Yee Meng – Chief Strategy Officer Ms Esther Thye has more than 20 years of experience in marketing and sales, primarily in the financial services industry. She has been with the Manager for 10 years and is responsible for managing key initiatives and overall business strategy, which includes the establishment of a wealth management platform and business expansion into international markets. Prior to joining the Manager in 2005, Ms Esther was attached to a number of local and international asset management companies. Ms Esther is an Associate Financial Practitioner (AFP) and holds an Advanced Diploma from the Chartered Institute of Marketing (CIM). Ms Chan Ai Mei – Chief Marketing Officer Ms Chan joined the Manager in 2010 as a head of financial institution distribution and assumed the role of chief marketing officer in January 2014. Her role encompasses marketing & communications, product, capital market and structuring, and driving the growth and development of private retirement scheme for

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the Manager. She has been responsible for overseeing and driving the growth of third party distribution channels for the Manager since 2010 and developing a team that services the financial institutions and business partnership teams to distribute the Manager’s products. Prior to her career with the Manager, she was with Standard Chartered Bank for five (5) years where she was involved in the wealth management business driving sales of investment products as well as leading a team of investment consultants. She also spent almost seven (7) years in Citibank as a personal banker and managed a sales team. She graduated with a degree in Bachelor of Commerce (majoring in Marketing) from Auckland University, New Zealand and is also a member of the Association of Financial Planning Malaysia.

Mr Steve Lim Lip Hoong – Chief Learning Officer Mr Steve Lim joined the Manager on 1 June 2010 as a chief product officer. He then took on a new role as chief learning officer in January 2014 and is instrumental in setting up an academy to cater to the learning and training needs of various clients. In his previous role as chief product officer, he led the structuring, developing and positioning of all the Manager’s products in their respective client segments. He has over twenty one (21) years’ experience in portfolio management, marketing and product development for the fund management, stock-broking, onshore and offshore private banking industries. Prior to joining the Manager, Mr Steve was attached to offshore global private banks in Singapore. His offshore experience includes marketing of wealth management services and formulating investment strategies for the high net worth individual market segment. Before moving offshore, he also covered various aspects of the capital market as fund manager for institutional sales and product director in several renowned financial groups in Malaysia. Mr Steve graduated from the University of Hawaii with a double major in Finance and Accounting, and is a chartered financial analyst (CFA) charter holder.. Mr Vincent Siau Kee Yen - Chief Sales Officer Mr Vincent was predesignated as chief sales officer on 1st January 2015. He oversees and is responsible for the sales and distribution channels of the Manager. His key role is in the strategic planning and development of necessary strategies for achieving the company’s objectives. Prior to his appointment, he was the head of retail & partnership business where he was instrumental in building the retail channels and developing the partnership businesses. He was also head of institutional business for 6 years growing the institutional and corporate business. Mr Vincent studied and trained in the field of accounting and marketing, has 20 years of experience in the financial services industry, specifically in share trading and investment account servicing. He began his career in share trading at Phileo Allied Bank in 1996 in share trading services and was responsible for marketing share trading accounts, share margin facilities, execution of share trading orders, and the provision of services for their customer banking needs. He was then head hunted by Public Bank to set up share trading centre for the bank branches and was then transferred to the bank’s main branch in Johor Bahru to head the share investment business, which eventually became one of the top performing branches. He has completed a double diploma in Cost and Financial Accounting from London Chamber of Commerce and Industry (LCCI) and Level 2 certification in both Chartered Institute of Management Accountants (CIMA) & Chartered Institute of Marketing (CIM). He is also a Capital Market Services Representative License holder. Mr Shahrin Shaikh Mohd – Chief Compliance, Risk and Legal Officer Mr Shahrin Shaikh Mohd joined the Manager as the chief compliance, risk and legal officer in January 2012 and has over nineteen (19) years’ experience in the fund management, unit trusts and capital market regulatory framework. He is entrusted by the Board and managing director of the Manager to supervise the overall implementation and communication of risk governance and compliance framework on top of overseeing legal matters and risk management for the company. He is the designated person responsible for the compliance matters of the company. Mr Shahrin began his career with the SC where he spent more than fifteen (15) years in various capacities covering various areas such as reviewing corporate proposals which includes Initial Public Offering (“IPO”), acquisitions, rights issues, unit trusts; development of policies and guidelines as well as supervision and examination of unit trusts and fund management companies. Mr Shahrin’s experience include a 1-year stint at the Capital Market Authority of Saudi Arabia as a consultant in reviewing the mutual funds regulatory framework in Saudi Arabia. Mr Shahrin graduated with a double major in Accounting and Finance from the University of Warwick, England.

12.7 Manager’s Delegate

The Manager has appointed HSBC (Malaysia) Trustee Berhad to undertake the valuation function for the Funds. The Trustee has invested significantly into information technology to offer accounting and valuation services to its clients. Under the terms of the Service Agreement, the Trustee would maintain

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proper records, and carry out daily valuation/pricing and sending the Unit prices for publication in the newspaper. All fees and expenses arising out of this appointment are not charged to the Funds and are solely borne by the Manager as required by the Guidelines. Please refer to Section 13 “The Trustee” for more details on the corporate profile.

12.8 The Manager’s Disclosure on Related Party Transactions and Possible Conflicts of Interest As at LPD, save for the transactions as disclosed below, the Manager is not aware of any existing and/or proposed related party transactions or conflict of interest situations or other subsisting contracts of arrangements involving the Funds.

12.8.1 Related Party Transactions Save for the transaction as disclosed below, the Manager is not aware of any existing and/or proposed related party transactions involving the Funds:-

Company Involved in the

Transaction

Nature of Transaction

Related Party Nature of Relationship

The Manager Placement of deposits.

Affin Hwang Investment Bank Berhad

(Affin Hwang IB)

Affin Hwang IB holds 70% equity interest in the Manager.

12.8.2 Conflicts of Interest

The directors of the Manager have either direct or indirect interest in other corporations carrying on a similar business and this is disclosed below:

Name of Director

Name of Corporation or Business

Nature of Interest

Shareholding (Direct/ Indirect)

Directorship

Puan Maimoonah

Binti Mohamed Hussain

Asian Islamic Investment Management Sdn. Bhd. (“AIIMAN”)

- Director

Teng Chee Wai Asian Islamic Investment Management Sdn. Bhd. (“AIIMAN”)

- Director

David Jonathan Semaya

Nikko Asset Management Australia Limited

- Director

Nikko AM Limited - Director

Nikko Asset Management New Zealand Limited

- Director

Nikko Asset Management International Limited

- Director

Nikko Asset Management Hong Kong Limited

- Director

Nikko Asset Management Americas, Inc

- Director

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Name of Director

Name of Corporation or Business

Nature of Interest

Shareholding (Direct/ Indirect)

Directorship

Nikko Asset Management Co. Ltd

-

Director &

Executive Chairman

Nikko Asset Management Europe Limited

- Director

Rongtong Fund Management Co. Ltd

- Director

Nikko AM Equities Australia Pty Limited

- Director

Nikko AM Global Holdings Limited

- Director

Nikko AM Americas Holding Co., Inc.

- Director

Nikko Asset Management Asia Limited

- Director

Ambit Investment Advisors Private Limited

- Director

Cross trades

The Manager may conduct cross trades between funds it currently manages provided that all criteria imposed by the regulators are met. Notwithstanding the above, cross trades between the personal account of an employee of the Manager and the Funds’ account(s) and between the Manager’s proprietary trading accounts and the Funds’ account(s) are strictly prohibited. Compliance with the criteria are monitored by the Compliance Unit of the Manager, and reported to the Manager’s Compliance and Risk Management Committee, to avoid conflict of interests and manipulation that could have a negative impact on investors.

12.9 Policy on Dealing with Conflicts of Interest

The Manager has in place policies and procedures to deal with any conflict of interest situations. In making an investment transaction for the Funds, the Manager will not make improper use of its position in managing the Funds to gain, directly or indirectly, any advantage or to cause detriment to the interests of Unit Holders. Where the interest of the directors, substantial shareholders or the investment committee members conflict with that of the Funds, they are to refrain from participating in the decision-making process relating to the matter. Staffs of the Manager are required to seek prior approval from the executive director or the managing director before dealing in any form of securities. All transactions with related parties are to be executed on terms which are best available to the Funds and which are not less favourable to the Funds than an arms-length transaction between independent parties.

12.10 Material Litigation

As at LPD, the Manager is not aware of any material litigation and arbitration, including those pending or threatened, and is not aware of any facts likely to give rise to any proceedings which might materially affect the business/financial position of the Manager and any of its delegates.

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13. THE TRUSTEE 13.1 Background Information

The Trustee is HSBC (Malaysia) Trustee Berhad (Company No. 1281-T), a company incorporated in Malaysia since 1937 and registered as a trust company under the Trust Companies Act 1949, with its registered address at 13

th floor, Bangunan HSBC, South Tower, No 2, Leboh Ampang, 50100 Kuala

Lumpur. 13.2 Board of Directors

Mr Piyush Kaul Ms On Bee Heong

Mr Yee Yit Seeng 13.3 Financial Position The Trustee has a paid-up capital of RM500,000.00. As at 31 December 2014, its shareholders’ funds

totaled RM57.33 million and it achieved a profit before tax of RM12.47 million.

The following is a summary of the past performance of the Trustee based on the audited accounts for the last 3 years:

Year Ended 31 December

2012 (RM)

2013 (RM)

2014 (RM)

Paid-up share capital 500,000 500,000 500,000

Shareholders’ funds 38,785,020 48,058,506 57,329,602

Turnover 23,539,663 24,287,694 25,328,744

Profit before tax 11,289,951 12,381,200 12,466,627

Profit after tax 8,570,502 9,273,605 9,271,171

13.4 Experience in Trustee Business Since 1993, the Trustee has acquired experience in the administration of unit trusts and as at LPD, is the

Trustee for 179 funds (including unit trust funds, exchange traded funds, wholesale funds and funds under private retirement scheme).

As at LPD, the Trustee has a workforce of 52 employees consisting of 43 executives and 9 non-executives. 13.5 Profile of Key Personnel Mr Kaleon Leong Bin Rahan – Chief Executive Officer He has been involved in the fund management industry since 1996, having served stints in a regulatory body, fund management company, trustee and audit firm. He is a Chartered Accountant and holds a Masters in Information Technology Management.

Mr Yee Yit Seeng – Chief Operating Officer He joined HSBC Trustee in July 1984. He holds a Diploma in Banking and Finance and is a senior associate of Institut Bank-Bank Malaysia. He has more than 22 years of experience in trust operations including client service, systems/projects & office administration, compliance, internal control & audit, and business development. He was also seconded to the HSBC Back-end Processing Office in Cyberjaya, Malaysia to support the global securities operations.

13.6 Roles, Duties and Responsibilities of the Trustee

The Trustee’s main functions are to act as trustee and custodian of the assets of the Funds and to safeguard the interests of Unit Holders of each Fund. In performing these functions, the Trustee has to exercise all due care, diligence and vigilance and is required to act in accordance with the provisions of the Deed, the Act and the Guidelines. Apart from being the legal owner of the Funds’ 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 and the Guidelines. In respect of monies paid by an Investor for the application of units, the Trustee’s responsibility arises when the monies are received in the relevant account of the Trustee for the Funds and in respect of repurchase request, the Trustee’s responsibility is discharged once it has paid the repurchase amount to the Manager.

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13.7 Retirement or Removal or Replacement of the Trustee The Trustee may retire upon giving twelve (12) months’ notice to the Manager of its desire to do so, or such shorter period as the Manager and the Trustee may agree, and may by Deed appoint in its stead or as an additional trustee a new trustee approved by the relevant authorities and under any relevant law.

The Trustee may be removed and another trustee may be appointed by Special Resolution of the Unit

Holders at a duly convened meeting of which notice has been given to the Unit Holders in accordance with the Deed.

13.8 Power of Trustee to Remove, Retire or Replace the Manager The Manager may be removed by the Trustee on the grounds that the Manager:

(a) the Manager has gone into liquidation, except for the purpose of amalgamation or reconstruction

or some similar purpose; or has had a receiver appointed; or has ceased to carry on business; or is in breach of any of its obligations or duties under the Deed or the relevant laws; or has ceased to be eligible to be a management company under the relevant laws;

or (b) the Manager has failed or neglected to carry out its duties to the satisfaction of the Trustee and

the Trustee considers that it would be in the interests of Unit Holders for it to do so after the Trustee has given notice to it of that opinion and the reasons for that opinion, and has considered any representations made by the Manager in respect of that opinion, and after consultation with the relevant authorities and with the approval of the Unit Holders by way of a Special Resolution.

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 Funds. 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 Funds; 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 Funds.

13.9 Trustee’s Statement of Responsibility The Trustee has given its willingness to assume the position as Trustee of the Funds and all the obligations in accordance with the Deed of each Fund, all relevant laws and rules of law. The Trustee shall be entitled to be indemnified out of the Funds against all losses, damages or expenses incurred by the Trustee in performing any of its duties or exercising any of its powers under this Deed in relation to the Funds. The right to indemnity shall not extend to loss occasioned by breach of trust, wilful default, negligence, fraud or failure to show the degree of care and diligence required of the Trustee having regard to the provisions of the Deed.

13.10 Trustee’s Disclosure of Material Litigation

As at LPD, the Trustee is not engaged in any material litigation and arbitration, including those pending or threatened, and is not aware of any facts likely to give rise to any proceedings which might materially affect the business/financial position of the Trustee and any of its delegates.

13.11 Trustee’s Delegate

The Trustee has appointed The Hongkong And Shanghai Banking Corporation Ltd as custodian of the quoted and unquoted local investments of the Fund. The assets of the Fund are held through their nominee company, HSBC Nominees (Tempatan) Sdn Bhd. If and when the Fund should invest overseas, HSBC Institutional Trust Services (Asia) Limited will be appointed as the custodian of the foreign assets of the Fund. Both The Hongkong And Shanghai Banking Corporation Ltd and HSBC Institutional Trust Services (Asia) Limited are wholly owned subsidiaries of HSBC Holdings Plc, the holding company of the HSBC Group. The custodian’s comprehensive custody and clearing services cover traditional settlement processing and safekeeping as well as corporate related services including cash and security reporting, income collection and corporate events processing. All investments are registered in the name of the Trustee or to the order of the Trustee. The custodian acts only in accordance with instructions from the Trustee.

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The Trustee shall be responsible for the acts and omissions of its delegate as though they were its own acts and omissions. However, the Trustee is not liable for the acts, omissions or failure of third party depository such as central securities depositories, or clearing and/or settlement systems and/or authorised depository institutions, where the law or regulation of the relevant jurisdiction requires the Trustee to deal or hold any asset of the Fund through such third parties. Trustee’s Delegates

1) The Hongkong And Shanghai Banking Corporation Limited (As Custodian) and assets held through

HSBC Nominees (Tempatan) Sdn Bhd (Co. No. 258854-D) No 2 Leboh Ampang 50100 Kuala Lumpur Telephone No: (603)2075 3000 Fax No: (603)2179 6488

2) HSBC Institutional Trust Services (Asia) Limited

6th Floor, Tower One HSBC Centre No 1 Sham Mong Road Kowloon, Hong Kong Telephone No: (852)2822 1111 Fax No: (852)2810 5259

13.12 Policy on Dealing with Related-Party Transactions/Conflict of Interest As Trustee for the Funds, there may be related party transaction involving or in connection with the Fund in the following events:- 1) Where the Fund invests in instruments offered by the related party of the Trustee (e.g

placement of monies, structured products, etc); 2) Where the Fund is being distributed by the related party of the Trustee as Institutional Unit

Trust Adviser (IUTA); 3) Where the assets of the Fund are being custodised by the related party of the Trustee both as

sub-custodian and/or global custodian of the Fund (Trustee’s delegate); and 4) Where the Fund obtains financing as permitted under the Securities Commission’s Guidelines on

Unit Trust, from the related party of the Trustee. The Trustee has in place policies and procedures to deal with conflict of interest, if any. The Trustee will not make improper use of its position as the owner of the Fund's assets to gain, directly or indirectly, any advantage or cause detriment to the interests of unit holders. Any related party transaction is to be made on terms which are best available to the Fund and which are not less favourable to the Fund than an arms-length transaction between independent parties. Subject to the above and any local regulations, the Trustee and/or its related group of companies may deal with each other, the Fund or any unit holder or enter into any contract or transaction with each other, the Fund or any unit holder or retain for its own benefit any profits or benefits derived from any such contract or transaction or act in the same or similar capacity in relation to any other scheme.

13.13 Anti-money Laundering Provisions

The Trustee has in place policies and procedures across the HSBC Group, which may exceed local regulations. Subject to any local regulations, the Trustee shall not be liable for any loss resulting from compliance of such policies, except in the case of negligence, willful default or fraud of the Trustee.

13.14 Statement of Disclaimer The Trustee is not liable for doing or failing to do any act for the purpose of complying with law, regulation or court orders.

13.15 Consent to Disclosure

The Trustee shall be entitled to process, transfer, release and disclose from time to time any information relating to the Funds, Manager and Unit holders for purposes of performing its duties and obligations in accordance to the Deed, the Capital Markets and Services Act 2007, Guidelines and any other legal and/or

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regulatory obligations such as conducting financial crime risk management, to the Trustee’s parent company, subsidiaries, associate companies, affiliates, delegates, service providers, agents and any governing or regulatory authority, whether within or outside Malaysia (who may also subsequently process, transfer, release and disclose such information for any of the above mentioned purposes) on the basis that the recipients shall continue to maintain the confidentiality of information disclosed, as required by law, regulation or directive, or in relation to any legal action, or to any court, regulatory agency, government body or authority.

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14. TAX ADVISER’S LETTER

Taxation adviser’s letter in respect of the taxation of the unit trust and the Unit holders

(prepared for inclusion in this Master Prospectus)

Ernst & Young Tax Consultants Sdn Bhd 13 January 2016 Level 23A Menara Milenium Pusat Bandar Damansara 50490 Kuala Lumpur The Board of Directors Affin Hwang Asset Management Berhad Suite 11-01, 11

th Floor

Menara Keck Seng 203, Jalan Bukit Bintang 55100 Kuala Lumpur Dear Sirs Taxation of the unit trust and unit holders This letter has been prepared for inclusion in this Master Prospectus in connection with the offer of units in the unit trusts known as Affin Hwang Select Cash Fund and Affin Hwang Enhanced Deposit Fund (hereinafter referred to collectively as “the Funds”). The purpose of this letter is to provide prospective unit holders with an overview of the impact of taxation on the Funds and the unit holders.

Taxation of the Funds The taxation of the Funds is subject to the provisions of the Malaysian Income Tax Act 1967 (“MITA”), particularly Sections 61 and 63B. Subject to certain exemptions, the income of the Funds comprising interest 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%

1.

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 Funds 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.

1 Pursuant to Section 20 of the Finance (No. 2) Act 2014, with effect from the year of assessment 2016, the income tax rate will be reduced to

24%.

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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 dividend2, interest and rent chargeable to tax for that basis period;

and C is the aggregate of the gross income consisting of dividend

2 and interest (whether such dividend

or interest is exempt or not) 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 Funds is exempt from income tax:

Malaysian sourced 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.

Any dividends paid, credited or distributed to any person where the company paying such dividends is not

entitled to deduct tax under Section 108 of the MITA (commonly referred to as single tier dividends).

Malaysian sourced interest

(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 19833;

(v) interest derived from Malaysia and paid or credited by any development financial institution

regulated under the Development Financial Institutions Act 20024;

(vi) interest from Islamic securities originating from Malaysia, other than convertible loan stock issued

in any currency other than Ringgit and approved by the Securities Commission or the Labuan Offshore Financial Services Authority (“LOFSA”)

5

2 Pursuant to Section 15 of the Finance Act 2011, with effect from the year of assessment 2011, dividend income is deemed to include income

distributed by a unit trust which includes distributions from Real Estate Investment Trusts. 3 The Banking and Financial Institutions Act 1989 and the Islamic Banking Act 1983 were repealed and replaced with the Financial Services Act

2013 and the Islamic Financial Services Act 2013, respectively, with effect from 30 June 2013. Pursuant to Section 272(h) of the Financial Services Act 2013 and Section 283(h) of the Islamic Financial Services Act 2013, any reference to the Banking and Financial Institutions Act 1989 and the Islamic Banking Act 1983 in any written law shall generally be construed as a reference to the Financial Services Act 2013 or the Islamic Financial Services Act 2013, respectively.

4 Pursuant to Section 22(c) of the Finance (No. 2) Act 2014, with effect from the year of assessment 2015, the interest will be exempted from tax.

5 Pursuant to Section 4 of the Finance Act 2011, with effect from 11 February 2010, any reference in the MITA to ‘LOFSA’ shall be construed as a reference to Labuan Financial Services Authority (LFSA).

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

6.

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 sourced income Dividends, interest 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. 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 Funds 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. Goods and Services Tax (“GST”) On 1 April 2015, GST was implemented at the standard rate of 6% to replace the existing sales tax and service tax systems. Based on the Goods and Services Tax Act 2014 which was gazetted on 19 June 2014, the Funds, being a collective investment vehicle, will be making exempt supplies. Hence, the Funds are not required to be registered for GST purposes. The Funds will incur expenses such as management fees, trustee fees and other administrative charges which will be subject to 6% GST. The 6% input tax which may be incurred on such expenses will generally not be claimable by the Funds. Taxation of unit holders For Malaysian income tax purposes, unit holders will be taxed on their share of the distributions received from the Funds. The income of unit holders from their investment in the Funds broadly falls under the following categories: 1. taxable distributions; and 2. non-taxable and exempt distributions. 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 Funds will have to be grossed up to take into account the underlying tax paid by the Funds and the unit holder will be taxed on the grossed up amount.

6 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.

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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.

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 exempt income earned by the Funds will not be subject to Malaysian income tax in the hands of the unit holders.

Rates of tax The Malaysian income tax chargeable on the unit holders would depend on their tax residence status and whether they are individuals, corporations or trust bodies. The relevant income tax rates are as follows:

Unit holders Malaysian income tax rates

Malaysian tax resident:

Individual and non-corporate unit holders (such as associations and societies)

Co-operatives7

Trust bodies

Progressive tax rates ranging from 0% to 26%

8

Progressive tax rates ranging from 0% to 25%

9

25%1

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)

10

(ii) Companies other than (i) above

First RM500,000 of chargeable income @ 20%

11

Chargeable income in excess of RM500,000 @ 25%

10

25%1

7 Pursuant to Paragraph 12(1), Schedule 6 of the MITA, the income of any co-operative society—

(a) in respect of a period of five years commencing from the date of registration of such co-operative society; and (b) thereafter where the members’ funds [as defined in Paragraph 12(2)] of such co-operative society as at the first day of the basis period

for the year of assessment is less than seven hundred and fifty thousand ringgit is exempt from tax.

8 Pursuant to Section 20 of the Finance (No. 2) Act 2014, with effect from the year of assessment 2015, the top Malaysian income tax rate for resident individuals will be reduced from 26% to 25%.

9 Pursuant to Section 20 of the Finance (No. 2) Act 2014, with effect from the year of assessment 2015, the top Malaysian income tax rate for co-operatives will be reduced from 25% to 24%.

10 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 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 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.

11 Pursuant to Section 20 of the Finance (No. 2) Act 2014, with effect from the year of assessment 2016, the income tax rate will be reduced to 19% on chargeable income up to RM500,000 and 24% on the remaining chargeable income.

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Unit holders Malaysian income tax rates

Non-Malaysian tax resident (Note):

Individual and non-corporate unit holders

Corporate unit holders and trust bodies

26%12

25%1

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 generally as follows:

Unit splits – new units issued by the Funds 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 Funds.

********************************************** 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 Funds. 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 Funds. Yours faithfully Ernst & Young Tax Consultants Sdn Bhd Robert Yoon Partner Ernst & Young Tax Consultants Sdn Bhd has given its consent to the inclusion of the taxation adviser's letter in the form and context in which it appears in this Master Prospectus and has not withdrawn such consent before the date of issue of this Master Prospectus. 12 Pursuant to Section 20 of the Finance (No. 2) Act 2014, with effect from the year of assessment 2015, the income tax rate for non-resident

individuals will be reduced from 26% to 25%.

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15. STATEMENT OF CONSENT The Trustee, the banker, the auditor and the solicitors have given their consent to the inclusion of their names in the form and context in which such names appear in this Master Prospectus and have not subsequently withdrawn such consent prior to the issuance of this Master Prospectus. The tax adviser has given their consent to the inclusion of their names and the tax adviser’s letter on taxation of the Funds and Unit Holders in the form and context in which it appears in this Master Prospectus and has not subsequently withdrawn such consent prior to the issuance of this Master Prospectus.

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16. DOCUMENTS AVAILABLE FOR INSPECTION

Unit Holders may inspect without charge, at the registered office of the Manager and/or the Trustee, for a period of not less than 12 months from the date of this Master Prospectus, the following documents or copies thereof, where applicable:

(a) The Deeds of the Funds. (b) Each material contract disclosed in the Master Prospectus and, in the case of contracts not

reduced into writing, a memorandum which gives full particulars of the contracts. (c) The audited financial statements of the Funds for the current financial year (where applicable)

and the last three (3) financial years or if the Funds have been established or incorporated for a period of less than three (3) years, the entire period preceding the date of the Master Prospectus.

(d) All reports, letters or other documents, valuations and statements by any expert, any part of

which is extracted or referred to in the Master Prospectus. Where a summary expert’s report is included in the Master Prospectus, the corresponding full expert’s report should be made available for inspection.

(e) Writ and relevant cause papers for all current material litigation and arbitration disclosed in the

Master Prospectus. (f) Any consent given by experts whose statement appears in the Master Prospectus.

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17. UNIT TRUST LOAN FINANCING RISK DISCLOSURE STATEMENT

Investing in a unit trust fund with borrowed money is more risky than investing with your own savings.

You should assess if loan financing is suitable for you in light of your objectives, attitude to risk and financial circumstances. You should be aware of the risks, which would include the following: 1. The higher the margin of financing (that is, the amount of money you borrow for every ringgit of

your own money which you put in as deposit or down payment), the greater the loss or gain on your investment.

2. You should assess whether you have the ability to service the repayments on the proposed loan. If your loan is a variable rate loan, and if interest rates rise, your total repayment amount will be increased.

3. If Unit prices fall beyond a certain level, you may be asked to provide additional acceptable collateral (where Units are used as collateral) or pay additional amounts on top of your normal instalments. If you fail to comply within the time prescribed, your Units may be sold towards the settlement of your loan.

4. Returns on unit trusts are not guaranteed and may not be earned evenly over time. This means that there may be some years where returns are high and other years where losses are experienced. Whether you eventually realise a gain or loss may be affected by the timing of the sale of your Units. The value of Units may fall just when you want your money back even though the investment may have done well in the past.

This brief statement cannot disclose all the risks and other aspects of loan financing. You should therefore carefully study the terms and conditions before you decide to take a loan. If you are in doubt about any aspect of this risk disclosure statement or the terms of the loan financing, you should consult the institution offering the loan.

ACKNOWLEDGEMENT OF RECEIPT OF RISK DISCLOSURE STATEMENT

I hereby acknowledge that I have received a copy of this Unit Trust Loan Financing Risk Disclosure Statement and understand its contents.

Signature : ___________________________________________________________

Full Name: ___________________________________________________________

Date : ___________________________________________________________

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18. DIRECTORY OF SALES OFFICE

HEAD OFFICE Suite 11-01, 11

th Floor, Menara Keck Seng,

203, Jalan Bukit Bintang, 55100 Kuala Lumpur. Tel : 03 – 2116 6000 Fax : 03 – 2116 6100 Toll Free No : 1-800-88-7080 Email: [email protected] SELANGOR A-7-G Jaya One No. 72A, Jalan Universiti 46200, Petaling Jaya Selangor Tel: 03 -7620 1290 Fax: 03 -7620 1298 PENANG No. 10-C-23 & 10-C-24, Precinct 10, Jalan Tanjung Tokong, 10470 Penang. Tel : 04 – 899 8022 Fax : 04 – 899 1916 PERAK 13A Persiaran Greentown 7, Greentown Business Centre, 30450 Ipoh, Perak. Tel: 05 - 241 0668 Fax: 05 – 255 9696 JOHOR 1

st Floor, No. 93, Jalan Molek 1/29,

Taman Molek, 81100 Johor Bahru, Johor. Tel : 07 – 351 5677/ 5977 Fax : 07 – 351 5377 MELAKA Ground Floor, No. 584 Jalan Merdeka, Taman Melaka Raya 75000 Melaka Tel: 06 -281 2890 Fax: 06 -281 2937

SABAH Lot No. B-2-09, 2

nd Floor,

Block B, Warisan Square, Jalan Tun Fuad Stephens, 88000 Kota Kinabalu, Sabah. Tel : 088 - 252 881 Fax : 088 - 288 803 SARAWAK Ground Floor, No. 69 Block 10, Jalan Laksamana Cheng Ho 93200 Kuching, Sarawak. Tel : 082 – 233 320 Fax : 082 – 233 663 1

st Floor, Lot 1291,

Jalan Melayu, MCLD, 98000 Miri, Sarawak. Tel : 085 - 418 403 Fax : 085 – 418 372


Documents

Responsibility Statement - eUnitTrust.com.my · 2 Responsibility Statement ^This Master Prospectus has been reviewed and approved by the directors of Affin Hwang Asset Management