RHB iCash Fund Report - October 2020

Transcription

1. Date : 06 October 2020 RHB iCASH FUND RESPONSIBILITY STATEMENT This Product Highlights Sheet has been reviewed and approved by the directors of RHB Islamic International Asset Management Berhad (“RHBIIAM”) and they have collectively and individually accepted 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 Product Highlights Sheet false or misleading. STATEMENT OF DISCLAIMER The Securities Commission Malaysia has authorised the issuance of RHB iCash Fund and a copy of this Product Highlights Sheet has been lodged with the Securities Commission Malaysia. The authorisation of the RHB iCash Fund and lodgement of this Product Highlights Sheet, should not be taken to indicate that the Securities Commission Malaysia recommends the RHB iCash Fund or assumes responsibility for the correctness of any statement made or opinion or report expressed in this Product Highlights Sheet. The Securities Commission Malaysia is not liable for any non-disclosure on the part of RHBIIAM responsible for the RHB iCash Fund and takes no responsibility for the contents of this Product Highlights Sheet. The Securities Commission Malaysia makes no representation on the accuracy or completeness of this Product Highlights Sheet, and expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of its contents. The Fund has been certified as Shariah-compliant by the Shariah adviser appointed for the Fund i.e. RHB Islamic Bank Berhad. PRODUCT HIGHLIGHTS SHEET This Product Highlights Sheet only highlights the key features and risks of RHB iCash Fund. Investors are advised to request, read and understand the Fund’s prevailing prospectus and its supplementary(ies) (if any) before deciding to invest. Name of Fund Manager Trustee Shariah Adviser RHB iCash Fund (“Fund”). RHB Islamic International Asset Management Berhad. HSBC (Malaysia) Trustee Berhad. RHB Islamic Bank Berhad. Fund Category Launch Date Financial Year End Money market fund (Islamic fund). 18 August 2011. 31 July. PRODUCT SUITABILITY This Fund is suitable for investors who: (i) require a high level of liquidity; (ii) are conservative and seek capital preservation; (iii) seek reasonable returns that commensurate with the low risks investments; (iv) (v) prefer a short term investment horizon; and require investments that comply with Shariah requirements. KEY PRODUCT FEATURES INVESTMENT OBJECTIVE This Fund aims to provide investors with a high level of liquidity* while providing reasonable returns by predominantly inves ting its assets in Malaysian Ringgit Islamic Deposits with financial institutions in Malaysia. *Note: Redemption monies of this Fund will generally be paid by the next business day (a working day when the Manager is open for business) after receipt by the Manager of the request to repurchase. INV INVESTMENT STRATEGY This Fund will invest in a portfolio of Malaysian Ringgit Islamic Deposits placed with financial institutions that conduct Islamic banking activities and have a minimum short-term rating of P1 and a minimum long-term rating of A2 by any domestic or global rating agency at the time of placement. This Fund’s portfolio will be structured as follows: 100% of Net Asset Value (“NAV”) - Investments in any Islamic deposits that are not embedded with or linked to Islamic financial derivative instruments (structured deposits) and (where applicable) these are current accounts, short term Islamic money market deposits and short term Islamic deposits with financial institutions (“Islamic Deposits”) which have a maturity period of not more than 365 days. Although the Fund is actively managed, its fund management strategy will depend on the interest / profit rate environment and the anticipated redemption requests by the unit holders of the Fund (“Unit Holder(s)”). In managing the risks of the Fund’s investments, the Manager will continuously monitor closely the financial health of these financial institutions. If, subsequent to the placement, the rating of the financial institution falls below the minimum rating threshold, the Manager will, as soon as practicable, uplift the Islamic Deposits and placed them with other financial institutions that meet the minimum rating threshold. The Fund complies with the permitted investments and restrictions imposed by the Securities Commission Malaysia, which ensures diversification in the Fund’s investments and so, helps to mitigate the Fund’s risks. Moreover, the Manager in making his/her investment decisions shall at all times comply with the investment restrictions and requirements as set out in the deed of the Fund. BENCHMARK The RHB Saving Account-i profit rate as published by RHB Islamic Bank Berhad. DISTRIBUTION DISTRIBUTION POLICY - Consistent with the Fund’s objective to provide reasonable returns, the Fund will distribute a substantial portion of its returns to the Unit Holders. Net distributions, if any, are declared monthly. DISTRIBUTION MODE - Distributions, if any, after deduction of taxation and expenses (i.e. net distributions), will be reinvested to purchase additional units based on the NAV per unit as at the second Business Day when units are quoted ex-entitlement. Allotment of such units shall be within two (2) weeks thereafter. RHB iCash Fund 1
2. KEY RISKS COUNTERPARTY RISK - This refers to the possibility that the licensed financial institutions in which the Fund placed its Islamic Deposits will not be able to make timely payments of profit and /or principal when it becomes due. INFLATION / PURCHASING POWER RISK - Inflation can be defined as increases in price level of goods and services and is commonly reported using the consumer price index as a measure. Inflation is one of the major risks to investors and results in uncertainty over the future value of the investments. Inflation reduces purchasing power of money. In an inflationary environment, Islamic Deposits are exposed to higher inflation risks due to its fixed returns nature as compared to other types of investments, for example equities whose returns are variable. As the returns of most Islamic Deposits are fixed, inflation will have an impact of reducing the overall income real return, i.e. the returns of the Islamic Deposits less inflation rate and correspondingly the Fund’s real returns. FUND PERFORMANCE This Fund commenced operation on 18 August 2011. Effective 28 February 2018, the Fund’s performance is benchmarked against the RHB Saving Account-i profit rate as published by RHB Islamic Bank Berhad. The Fund’s performances are as follows and where applicable is based on the Maybank Islamic Berhad Basic Savings Account-i dividend rate from 18 August 2011 – 27 February 2018; and the RHB Saving Account-i profit rate from 28 February 2018 onwards. AVERAGE TOTAL RETURNS OF THE FUND Average Total Returns of RHB iCash Fund in comparison with Benchmark^ RHB iCash Fund Benchmark^ 4.00 Total Returns (%) 3.50 3.12 2.90 3.00 3.09 2.41 2.50 2.00 1.22 1.50 1.33 1.61 1.49 1.00 0.50 0.00 1 Year 31/07/2019 - 31/07/2020 3 Years 31/07/2017 - 31/07/2020 5 Years 31/07/2015 - 31/07/2020 Since Launch 18/08/2011* - 31/07/2020 Total Returns (%) ANNUAL TOTAL RETURNS OF THE FUND 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 Total Returns of RHB iCash Fund in comparison with Benchmark^ for the financial year/period ended 31 July 3.62 3.31 3.27 3.02 RHB iCash Fund Benchmark^ 3.42 2.89 2.97 2.77 2.42 1.75 1.23 2020 1.25 2019 1.75 1.50 2018 2017 2016 1.75 2015 1.75 2014 1.66 1.75 2013 Since Launch 18/08/2011* 31/07/2012 Source: Lipper IM, 17 August 2020. * The last day of the Fund’s initial offer period. ^ The benchmark of the Fund: Maybank Islamic Berhad Basic Savings Account-i dividend rate from 18/08/11 – 27/02/18 and RHB Saving Account-i profit rate from 28/02/18 onwards. The abovementioned Fund performance is computed on NAV to NAV basis and has been adjusted to reflect distributions and unit splits, if any. For the latest financial year, the Fund registered a return of 2.42% outperforming the benchmark return of 1.23%. PORTFOLIO TURNOVER RATIO (“PTR”) Financial Year Ended 31 July 2020 2019 2018 164.32 74.46 42.21 The PTR for the financial year was higher compared with the previous financial year due to lower average net asset value during the latest financial year. Portfolio Turnover Ratio (times) DISTRIBUTION RECORD Financial Year Ended 31 July 2020 2019 Gross distribution per unit (sen) 1.6800 1.6800 Net distribution per unit (sen) 1.6800 1.6800 For the latest financial year, the Fund has declared a total gross distribution of 1.6800 sen per unit. 2018 2.5200 2.5200 PAST PERFORMANCE OF THE FUND IS NOT AN INDICATION OF ITS FUTURE PERFORMANCE. RHB iCash Fund 2
3. FEES & CHARGES This table describes the charges that you may directly incur when you buy or redeem units of this Fund: Charges Sales charge by distribution channel Institutional Unit Trust Adviser (IUTA) None. Direct sales None. (Direct investment with the Manager) Repurchase charge None. Dilution fee or transaction cost None. factor Any other charges payable directly by the investors RM 25.00 per switch or the difference in sales charge between switching funds on the amount to be Switching fee switched, whichever applicable. Transfer fee 1 RM5.00 per transfer. This table describes the fees that you may indirectly incur when you invest in the Fund: Fees and Expenses 0.40% per annum of NAV before deducting the Manager’s fee for that particular day. From this fee Annual management fee1 received, the Manager will pay for the annual trustee fee of 0.08% per annum of NAV and all expenses which are directly related in the ordinary course of business of the Fund. Annual trustee fee Nil. Trustee fee will be borne by the Manager. Generally none, except for those fees and charges which are out of the ordinary course of business of Expenses directly related to the Fund the Fund and directly related and necessary in administering the Fund such as, taxation of the Fund, if any, and expenses incurred in termination the fund. Such expenses will be charged to the Fund. Other fees payable indirectly by an None. investor (if any) 1 All fees and charges payable to the Manager and the Trustee are subject to any applicable taxes and/or duties and at such rate as may be imposed by the government from time to time. Note: The Manager may, for any reason at any time, waive or reduce the amount of its management fee only or other charges directly payable by the Unit Holder and/or investor in respect of the Fund, either generally (for all Unit Holders and/or investors) or specifically (for any particular Unit Holder and/or investor) and for any period or periods of time at its absolute discretion. TRANSACTION INFORMATION Minimum initial investment Minimum additional investment Minimum repurchase units Restriction on frequency redemption Minimum investment balance Redemption period of Cooling-off period Switching facility and frequency of switching RM10,000 or such other lower amount as the Manager may from time to time accept. RM5,000 or such other lower amount as the Manager may from time to time accept. 5,000 units or such other lower quantity as the Manager may from time to time decide. No restrictions. 5,000 units or such other quantity as the Manager may from time to time decide. Redemption monies to be paid the next business day # after receipt by the Manager of the request to repurchase. # These are the working days when the Manager is open for business. Unit Holders have the right to request for a refund of their investments within six (6) business days # which shall be effective from the date of receipt of the application by the Manager, subject to eligibility. # These are the working days when the Manager is open for business. Available. The minimum amount for a switch into another fund is one thousand (1,000) Units. There are no restrictions as to the number of switches a Unit Holder may perform or the frequency of switching. The minimum investment balance must be at least five thousand (5,000) Units or such other lower quantity as the Manager may from time to time decide after the switch. The Manager however, reserves the right to vary these terms. Note: The switching fee will take effect from 1 April 2020. Transfer facility Available. Any transfer must be for a minimum of 5,000 units. In the event of partial transfer, both the transferor and the transferee must each hold a minimum investment balance of five thousand (5,000) units or after the transfer. Business Day Dealing hours A day on which Bursa Malaysia is open for trading. 9:00 a.m. to 4:00 p.m. (Malaysia time) on any Business Day or such later time as the Manager may determine provided always that complete applications for the Fund are received before the next valuation point. YOU SHOULD NOT MAKE PAYMENT IN CASH TO A UNIT TRUST CONSULTANT OR ISSUE A CHEQUE IN THE NAME OF A UNIT TRUST CONSULTANT. VALUATIONS AND EXITING FROM INVESTMENT VALUATION OF ASSETS The Fund must be valued at least once every Business Day. The valuation of the Fund for a Business Day will be conducted by 5.00 p.m. on a Business Day. Thus, the daily price of the Fund for a particular Business Day will be published in the major newspapers on the next day. Investors may however obtain the most current computed price by contacting the Manager at 03-9205 8000. RHB iCash Fund 3
4. EXITING FROM THIS INVESTMENT The repurchase price shall be the NAV per unit as at the next valuation point of the Fund ’s relevant Business Day after the request for repurchase is received by the Manager (“forward pricing”). The Manager will not impose any redemption charge on the redemption amount. For partial redemption, the minimum redemption of units is 5,000 units or such other lower quantity as the Manager may from time to time decide and the balance of units after the redemption must be at least 5,000 units (the “minimum investment balance”). There are no restrictions on the frequency of redemptions in a year. However, if the balance of units held after the redemption is less than the minimum investment balance the Manager shall not be bound to comply with any request for redemption of units and may proceed to redeem the entire investment and forward the proceeds to the investor. In any such situation, investors will be notified accordingly. Units can be redeemed by forwarding the completed form of request to repurchase to the Manager’s principal office or any of its branch offices, or to any of its participating institutional unit trust advisers (IUTAs) or to any other authorized distributors before their respective cut-off times. Redemption monies will be paid by the next business day # after receipt by the Manager of the request to repurchase units of the Fund. In the event of any technical difficulties beyond the Manager’s control or should the redemption request result in the sale of assets which cannot be liquidated on adequate terms and is as such not in the interest of existing Unit Holders, redemption monies may be paid at any time not later than ten (10) days after receipt by the Manager of the request to repurchase units of the Fund or such other period as may be permitted by the relevant authorities from time to time. # These are the working days when the Manager is open for business. CONTACT INFORMATION To contact the Manager or to find out about the distribution channels of the Fund, you may call us at 03-9205 8000 at any time during office hours: Mondays through Fridays from 9.00 a.m. – 5.00 p.m. or e-mail your enquiries to rhbiiam.enquiry@rhbgroup.com. HOW DO YOU LODGE A COMPLAINT? 1. For internal dispute resolution, you may contact:  via phone to: 03-9205 8000  via fax to: 03-9205 8107  via email to: rhbiiam.enquiry@rhbgroup.com  via letter to: RHB Islamic International Asset Management Berhad, Level 8, Tower 2 & 3, RHB Centre, Jalan Tun Razak, 50400 Kuala Lumpur. 2. If you are dissatisfied with the outcome of the internal dispute resolution process, please refer your dispute to the Securities Industry Dispute Resolution Center (SIDREC):  via phone to: 03-2282 2280  via fax to: 03-2282 3855  via email to: info@sidrec.com.my  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 3. You can also direct your complaint to the Securities Commission Malaysia (“SC”) even if you have initiated a dispute resolution process with SIDREC. To make a complaint, please contact the SC’s Consumer & Investor Office:  via phone to the Aduan Hotline at: 03-6204 8999  via fax to: 03-6204 8991  via email to: aduan@seccom.com.my  via online complaint form available at: www.sc.com.my  via letter to: Consumer & Investor Office, Securities Commission Malaysia, No 3 Persiaran Bukit Kiara, Bukit Kiara, 50490 Kuala Lumpur. 4. Federation of Investment Managers Malaysia (FIMM)’s Complaints Bureau:  via phone to: 03-2092 3800  via fax to: 03-2093 2700  via email to: complaints@fimm.com.my  via online complaint form available at: www.fimm.com.my  via letter to: Legal, Secretarial & Regulatory Affairs, Federation of Investment Managers Malaysia, 19-06-1, 6th Floor Wisma Tune, No. 19 Lorong Dungun, Damansara Heights, 50490 Kuala Lumpur. RHB iCash Fund 4