1. finance
2. investing
3. funds
4. hedge fund

REPLACEMENT MASTER PROSPECTUS
REPLACEMENT
MASTER PROSPECTUS
THIS REPLACEMENT MASTER PROSPECTUS IS DATED 11 JULY 2013 AND EXPIRES ON 10 JULY 2014
It incorporates the following:
Kenanga OneAnswer™ Investment Funds
(formerly known as ING OneAnswer™ Investment Funds)
which was constituted on 16 April 2004 and consists of:
• Kenanga Blue Chip Fund (formerly known as ING Blue Chip)
• Kenanga Growth Opportunities Fund (formerly known as ING Growth Opportunities)
• Kenanga Shariah Growth Opportunities Fund (formerly known as ING Shariah Growth Opportunities)
• Kenanga Ekuiti Islam Fund (formerly known as ING Ekuiti Islam)
• Kenanga Managed Growth Fund (formerly known as ING Managed Growth)
• Kenanga Diversified Fund (formerly known as ING Diversified)
• Kenanga Shariah Balanced Fund (formerly known as ING Shariah Balanced)
• Kenanga Income Plus Fund (formerly known as ING Income Plus)
• Kenanga Bon Islam Fund (formerly known as ING Bon Islam)
Kenanga Cash Plus Fund (formerly known as ING Cash Plus) constituted on 29 August 2006
Kenanga i-Enhanced Cash Fund (formerly known as ING i-Enhanced Cash) constituted on 4 July 2007
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014
replaces the ING Funds Master Prospectus dated 23 April 2013 and ING Funds First
Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
MANAGEMENT COMPANY
Kenanga Investors Berhad (353563-P)
A Company incorporated in Malaysia, under the Companies Act 1965
TRUSTEE
CIMB Commerce Trustee Berhad (313031-A)
Website: www.kenangainvestors.com.my
Email: [email protected]
Toll Free Line: 1-800-88-3737
Head Office, Kuala Lumpur
Suite 12.02, 12th Floor, Kenanga International,
Jalan Sultan Ismail, 50250 Kuala Lumpur.
Tel: +603 2057 3688
Fax: +603 2161 8807
INVESTORS ARE ADVISED TO READ AND UNDERSTAND THE CONTENTS OF THE PROSPECTUS. IF
IN DOUBT, PLEASE CONSULT A PROFESSIONAL ADVISER.
FOR INFORMATION CONCERNING CERTAIN RISK FACTORS WHICH SHOULD BE CONSIDERED BY
PROSPECTIVE INVESTORS, SEE “RISK FACTORS” COMMENCING ON PAGE 23.
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
Preface
Dear Prospective Investors,
Pursuant to a vesting order granted by the High Court of Malaya on 25 April 2013, ING Funds Berhad has transferred its entire
business including all assets and liabilities to us with effect from 8 June 2013 (“Transfer”).
Consequent upon the aforesaid Transfer:
(i)
The names of the Funds which are the subject of the ING Funds Master Prospectus dated 23 April 2013 and the ING
Funds First Supplementary Master Prospectus dated 3 May 2013 have been changed to the following:
NAME OF THE FUNDS IN THE ING FUNDS MASTER
PROSPECTUS DATED 23 APRIL 2013 AND THE ING FUNDS
FIRST SUPPLEMENTARY MASTER PROSPECTUS DATED 3
MAY 2013
1) ING OneAnswer™ Investment Funds:
ING Blue Chip
ING Growth Opportunities
ING Shariah Growth Opportunities
ING Ekuiti Islam
ING Managed Growth
ING Diversified
ING Shariah Balanced
ING Income Plus
ING Bon Islam
NEW NAME OF THE FUNDS
Kenanga OneAnswer™ Investment Funds:
Kenanga Blue Chip Fund
Kenanga Growth Opportunities Fund
Kenanga Shariah Growth Opportunities Fund
Kenanga Ekuiti Islam Fund
Kenanga Managed Growth Fund
Kenanga Diversified Fund
Kenanga Shariah Balanced Fund
Kenanga Income Plus Fund
Kenanga Bon Islam Fund
2) ING Cash Plus
3) ING i-Enhanced Cash
Kenanga Cash Plus Fund
Kenanga i-Enhanced Cash Fund
(ii) The Deeds of the Funds have been amended via the following supplemental deeds:
Kenanga OneAnswer™
Seventh Supplemental Deed dated 15 May 2013
Kenanga Cash Plus
First Supplemental Deed dated 15 May 2013
Kenanga i-Enhanced Cash
First Supplemental Deed dated 15 May 2013
This Replacement Master Prospectus features our local investment funds available through Kenanga OneAnswerTM Investment
Funds (Kenanga OneAnswerTM), Kenanga Cash Plus Fund and Kenanga i-Enhanced Cash Fund. Kenanga OneAnswerTM
consists of Kenanga Blue Chip Fund, Kenanga Growth Opportunities Fund, Kenanga Shariah Growth Opportunities Fund,
Kenanga Ekuiti Islam Fund, Kenanga Managed Growth Fund, Kenanga Diversified Fund, Kenanga Shariah Balanced Fund,
Kenanga Income Plus Fund and Kenanga Bon Islam Fund.
With this full range of unit trust funds ranging from equity, balance as well as fixed income funds, there is always one that will
meet your investment needs. We also offer investors with conventional and Shariah-compliant offerings for you to customize
and diversify your investment portfolio.
In this Replacement Master Prospectus, you will find the main features, objectives, investment strategy and principal risks
related to the Funds in the Key Data section on item 3. More detailed explanation on the Funds can be found on items 5.2 –
5.4. On these pages, you will also find the profile of investors suitable to invest in the Funds and the fees and charges payable
when investing in the respective Funds.
At KIB, we pride ourselves for offering the most innovative and cost effective investment solutions. Our aim is to provide
investors with utmost convenience when investing with us. We have an easy to access electronic portal called ‘Investor Easy
Network’ for investors to access investment transactions and portfolio anywhere, anytime.
If you are interested to invest in the Funds contained in this Replacement Master Prospectus, please contact our authorised KIB
advisers, Institutional Unit Trust Advisers and Corporate Unit Trust Advisers. Our distribution channels are listed on item 2.
Alternatively, you can also contact our Investor Services Centre at 03 2057 3688 or visit us online at
www.KenangaInvestors.com.my.
Yours sincerely,
Abdul Razak Bin Ahmad
Chief Executive Officer
2
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
Responsibility Statement
This Replacement Master Prospectus has been reviewed and approved by the directors of the Management Company 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, there are no false or misleading statements, or omission of other facts
which would make any statement in the Replacement Master Prospectus false or misleading.
Statements of Disclaimer
The Securities Commission Malaysia has authorized the Funds and a copy of this Replacement Master Prospectus has been
registered with the Securities Commission Malaysia.
The authorization, and the registration of this Replacement Master Prospectus, should not be taken to indicate that the
Securities Commission Malaysia recommends the Funds or assumes responsibility for the correctness of any statement made
or opinion or report expressed in this Replacement Master Prospectus.
The Securities Commission Malaysia is not liable for any non-disclosure on the part of the Management Company responsible
for the Funds and takes no responsibility for the contents in this Replacement Master Prospectus. The Securities Commission
Malaysia makes no representation on the accuracy or completeness of this Replacement Master Prospectus, and expressly
disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of its contents.
INVESTORS SHOULD RELY ON THEIR OWN EVALUATION TO ASSESS THE MERITS AND RISKS OF THE
INVESTMENT. IN CONSIDERING THE INVESTMENT, INVESTORS WHO ARE IN DOUBT ON THE ACTION TO BE TAKEN
SHOULD CONSULT PROFESSIONAL ADVISERS IMMEDIATELY.
No units of the Funds will be issued or sold based on this Replacement Master Prospectus later than one year after
the date of the Replacement Master Prospectus.
Investors are advised to note that recourse for false or misleading statements or acts made in connection with this Replacement
Master Prospectus is directly available through sections 248, 249 and 357 of the Capital Markets and Services Act 2007.
Kenanga Shariah Growth Opportunities Fund, Kenanga Ekuiti Islam Fund, Kenanga Shariah Balanced Fund, Kenanga Bon
Islam Fund and Kenanga i-Enhanced Cash Fund have been certified as being Shariah-compliant by the Shariah adviser
appointed for the Funds.
3
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
Table of Contents
Page/s
7
1
Glossary of Terms
2
Corporate Directory
10
3
Key Data of Kenanga OneAnswerTM, Kenanga Cash Plus Fund and Kenanga i-Enhanced Cash
Fund
3.1 Information summary
3.2 Fees and charges
3.3 Transactions
3.4 Other information
13
19
21
21
4
5
Risk Factors
4.1 General risks of investing in a unit trust fund
4.2 Specific and peculiar risks when investing in Kenanga OneAnswerTM, Kenanga Cash Plus Fund and
Kenanga i-Enhanced Cash Fund
4.3 Risk management strategies
4.3.1 Kenanga Cash Plus Fund and Kenanga i-Enhanced Cash Fund
4.3.2 Kenanga Income Plus Fund and Kenanga Bon Islam Fund
4.3.3 Kenanga Managed Growth Fund, Kenanga Diversified Fund and Kenanga Shariah Balanced
Fund
4.3.4 Kenanga Blue Chip Fund, Kenanga Growth Opportunities Fund, Kenanga Shariah Growth
Opportunities Fund and Kenanga Ekuiti Islam Fund
23
24
25
25
25
25
25
Details of Kenanga OneAnswerTM, Kenanga Cash Plus Fund and Kenanga i-Enhanced Cash Fund
5.1 What is Kenanga OneAnswerTM?
5.1.1 Why Kenanga OneAnswerTM?
5.1.2 Choosing the investments that suit you
5.1.3 Managing risk and return
5.2 Details of Kenanga OneAnswerTM
5.2.1 Kenanga Blue Chip Fund
5.2.2 Kenanga Growth Opportunities Fund
5.2.3 Kenanga Shariah Growth Opportunities Fund
5.2.4 Kenanga Ekuiti Islam Fund
5.2.5 Kenanga Managed Growth Fund
5.2.6 Kenanga Diversified Fund
5.2.7 Kenanga Shariah Balanced Fund
5.2.8 Kenanga Income Plus Fund
5.2.9 Kenanga Bon Islam Fund
5.3 What is Kenanga Cash Plus Fund?
5.3.1 Why invest in Kenanga Cash Plus Fund?
5.3.2 Details of Kenanga Cash Plus Fund
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27
27
27
28
28
29
30
31
32
33
34
35
36
37
37
37
5.4 What is Kenanga i-Enhanced Cash Fund?
5.4.1 Why invest in Kenanga i-Enhanced Cash Fund?
5.4.2 Details of Kenanga i-Enhanced Cash Fund
5.5 Authorised investments
5.6 Investment restrictions and limits of the Funds
5.6.1 Kenanga Income Plus Fund, Kenanga Bon Islam Fund, Kenanga Cash Plus Fund and
Kenanga i-Enhanced Cash Fund
5.6.2 Kenanga Blue Chip Fund, Kenanga Growth Opportunities Fund, Kenanga Shariah Growth
Opportunities Fund, Kenanga Ekuiti Islam Fund, Kenanga Managed Growth Fund, Kenanga
Diversified Fund and Kenanga Shariah Balanced Fund
5.7 Valuation of assets
5.8 Borrowing policy
5.9 Shariah investment guidelines adopted by IBFIM and cleansing/purification process for the Fund
5.9.1 Shariah Investment Guidelines
5.9.2 Cleaning/purification process
5.10 Loan financing
6
38
38
38
39
39
39
40
40
41
41
41
43
43
Fund Performance
6.1 Kenanga OneAnswerTM
6.1.1 Kenanga Blue Chip Fund
6.1.2 Kenanga Growth Opportunities Fund
6.1.3 Kenanga Shariah Growth Opportunities Fund
6.1.4 Kenanga Ekuiti Islam Fund
6.1.5 Kenanga Managed Growth Fund
6.1.6 Kenanga Diversified Fund
6.1.7 Kenanga Shariah Balanced Fund
6.1.8 Kenanga Income Plus Fund
6.1.9 Kenanga Bon Islam Fund
44
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46
47
48
49
50
51
52
4
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
6.2 Kenanga Cash Plus Fund
6.3 Kenanga i-Enhanced Cash Fund
7
53
55
Historical Financial Highlights of the Funds
7.1 Financial statements of the Funds for the 3 most recent financial years immediately preceding the
date of the Replacement Master Prospectus
7.1.1 Kenanga OneAnswerTM
7.1.2 Kenanga Cash Plus Fund
7.1.3 Kenanga i-Enhanced Cash Fund
7.2 Total annual expenses incurred by the Funds in the preceding financial year
7.3 Management expenses ratio for the 3 most recent financial years or since establishment
57
61
62
62
63
Fees, Charges and Expenses
8.1 How Net Asset Value is calculated
8.2 Fees and charges directly incurred
8.2.1 Entry fee
8.2.2 Redemption charge
8.3 Fees and charges indirectly incurred
8.3.1 Annual management fee
8.3.2 Annual trustee fee
8.4 Other charges
8.5 The expenses of the Fund
8.6 Stockbroking rebates and soft commissions
64
64
64
64
65
65
65
66
66
66
Transaction Information
9.1 Forward pricing for both entry and redemption prices
9.2 Single pricing policy
9.3 Policy on rounding adjustments
9.4 Investing into the Fund
9.5 Redeeming from the Fund
9.6 Switching of Units
9.7 Transfer of Units
9.8 How to buy, sell, switch and transfer
9.9 Distribution channels
9.10 Cooling-off
9.11 Minimum fund size
9.12 Policy on distribution of income and unclaimed monies
9.13 Facsimile instruction facility
67
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68
70
71
71
71
72
72
72
The Management Company
10.1 Board of Directors
10.2 Key management staff
10.3 The Management Company’s track record and experience
10.4 Summary of financial position for the last 3 years
10.5 Roles, duties and responsibilities of the Management Company
10.6 Material litigation and arbitration
10.7 Investment committee members
10.8 Investment management team
74
75
76
76
77
77
77
77
11
Shariah adviser - IBFIM
11.1 General information of IBFIM
11.2 Roles and responsibilities of IBFIM as the Shariah adviser
11.3 Profile of the Shariah team
79
79
79
79
12
Trustee
12.1 Directors
12.2 Trustee’s experience
12.3 Financial position
12.4 Trustee’s statement of responsibility
12.5 Roles, duties and responsibilities of the Trustee in relation to the Fund
12.6 Material litigation and arbitration
12.7 Trustee’s obligation
12.8 Trustee’s delegate and delegate’s roles and duties
81
81
81
81
81
81
81
82
82
13
Salient Terms of the Deed
13.1 Unitholders’ rights
13.2 Unitholders’ liabilities
13.3 Maximum fees and charges permitted by the Deed
13.4 Permitted expenses payable by the Fund
13.5 Factors that may lead to the retirement, removal or replacement of the Management Company
13.6 Powers of the Management Company to remove or replace the Trustee
13.7 Factors that may lead towards the retirement, removal or replacement of the Trustee
83
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84
84
84
8
9
10
57
5
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
13.8 Power of the Trustee to remove, retire or replace the Management Company
13.9 Termination of the Fund
13.10 Unitholder’s meeting
85
85
85
Related-Party Transactions and Conflict of Interest
14.1 Related-party transactions
14.2 Policy on conflict of interest
86
86
15
Taxation adviser’s Letter in Respect of Taxation of the Unit Trust and the Unitholders
87
16
Additional Information
16.1 Managing your investment portfolio
16.2 Keeping track of your investment
16.3 Policy on money laundering
16.4 Disclosure of material contracts
16.5 Distribution channels premises
96
96
96
96
17
Consent
97
18
Documents Available for Inspection
98
14
6
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
1. GLOSSARY OF TERMS
In this Replacement Master Prospectus, the following abbreviations or words shall have the following definitions unless stated
otherwise:
All Malaysian Government Securities
Index
Rating Agency Malaysia-Quant Shop Malaysian Government Securities All-Index.
All Malaysian Government Investment
Issue
Rating Agency Malaysia-Quant Shop Malaysian Government Investment Issue.
authorized distributors
KIB advisers, selected Institutional Unit Trust Advisers (“IUTA”), Corporate Unit
Trust Advisers (“CUTA”) and direct sales.
Bursa Malaysia
Bursa Malaysia Securities Berhad.
Business day
The day on which Bursa Malaysia Securities Berhad is open for trading.
CEO
Chief Executive Officer.
CMSA, the Act
Capital Markets and Services Act 2007 and any amendments made thereto.
collective investment scheme
Comprises unit trust funds, real estate investment trust funds, closed end funds,
exchange traded funds and wholesale funds.
days
References to ‘days’ in this Replacement Master Prospectus will be taken to mean
calendar days unless otherwise stated.
debentures
Includes debenture stock, bonds, notes and any other evidence of indebtedness of
a corporation for borrowed monies, whether or not constituting a charge on the
assets of the corporation.
Deed
Kenanga
OneAnswerTM
•
•
•
•
•
•
Kenanga Cash Plus
Fund
•
•
•
•
Deed dated 16 April 2004
Supplementary Deed dated 5 October 2005
Second Supplementary Deed dated 10 April 2007
Third Supplementary Deed dated 1 November 2007
Fourth Supplementary Deed dated 3 April 2008
Fifth Supplementary Deed dated 23 September
2009
Sixth Supplementary Deed dated 11 August 2010
Seventh Supplemental Deed dated 15 May 2013
Deed dated 29 August 2006
First Supplemental Deed dated 15 May 2013
Kenanga i-Enhanced
Cash Fund
•
•
Deed dated 4 July 2007
First Supplemental Deed dated 15 May 2013
direct sales
KIB employees responsible for business development targeted at retail individual
and corporate/institutional market segments.
entry fee
The fee chargeable to acquire Units in the Fund.
entry price
The entry price for Units should be the NAV per Unit of the Fund as at the next
valuation point after the request for Units is received by the Management
Company. Entry price is commonly known as selling price.
EPF
Employees Provident Fund.
FBM 100
FTSE Bursa Malaysia 100 Index.
FBME
FTSE Bursa Malaysia Emas Index.
FBMS
FTSE Bursa Malaysia Emas Shariah Index.
FiMM
Federation of Investment Managers Malaysia.
7
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
forward pricing
Means the NAV per Unit of the Funds used for the purpose of calculating a price is
the NAV per Unit as at the next valuation point after an instruction or a request is
received before 4.00 p.m. on any Business day.
Guidelines
The guidelines issued by the Securities Commission Malaysia governing the
creation and operation of unit trust funds, as may be amended from time to time.
IBFIM
The appointed Shariah adviser for Kenanga Shariah Growth Opportunities Fund,
Kenanga Ekuiti Islam Fund, Kenanga Shariah Balanced Fund, Kenanga Bon Islam
Fund and Kenanga i-Enhanced Cash Fund.
investor
The person who is the prospective Unitholder of Kenanga OneAnswerTM , Kenanga
Cash Plus Fund and/or Kenanga i-Enhanced Cash Fund.
Kenanga OneAnswerTM
Refers to Kenanga OneAnswerTM Investment Funds, which consists of: Kenanga
Blue Chip Fund, Kenanga Growth Opportunities Fund, Kenanga Shariah Growth
Opportunities Fund, Kenanga Ekuiti Islam Fund, Kenanga Managed Growth Fund,
Kenanga Diversified Fund, Kenanga Shariah Balanced Fund, Kenanga Income
Plus Fund and Kenanga Bon Islam Fund.
Management Company/we/KIB
Refers to Kenanga Investors Berhad.
MARC
Malaysian Rating Corporation Berhad.
MGS
Malaysian Government Securities.
NAV
The Net Asset Value (“NAV”) of the Fund is determined by deducting the value of
all the Fund’s liabilities from the value of all the Fund’s assets, at the valuation
point. For the purpose of computing the annual management fee and annual
trustee fee, the NAV of the Fund should be inclusive of the management fee and
trustee fee for the relevant day.
performance benchmark
A performance benchmark is a standard against which the performance of a fund
can be measured.
Portfolio turnover ratio (PTR)
The ratio of the average sum of acquisitions and disposals of the unit trust fund for
the year to the average value of the unit trust fund for the year calculated on a daily
basis i.e. ([Total acquisitions of the fund for the year + Total disposals of the fund
for the year] / 2) / Average value of the unit trust fund for the year calculated on a
daily basis.
RAM
RAM Holdings Berhad.
redemption price
The redemption price for Units should be the NAV per Unit of the Fund as at the
next valuation point after the request for redemption is received by the
Management Company. Redemption price is commonly known as repurchase
price.
Regional Branch Offices
KIB sales and administration offices throughout the country to support all
distribution channels; sales activities and where Units can be purchased and
redeemed.
RM and sen
Ringgit Malaysia and sen respectively.
SC
The Securities Commission Malaysia.
Securities Laws
The Securities Industry (Central Depositories) Act 1991, the Securities Commission
Act 1993 and the Capital Markets and Services Act 2007 and unless expressly
stated otherwise, includes any regulations, rules, orders, notifications or other
subsidiary legislation made under those laws.
Shariah
Islamic Law comprising the whole body of rulings pertaining to human conducts
derived from the primary and secondary sources of the Shariah. The primary
sources are the Quran, the Sunnah, Ijma’ and Qiyas while the secondary ones are
those established sources such as Maslahah, Istihsan, Istishab, ‘Uruf and Sadd
Zara’ie.
Shariah adviser
Refers to IBFIM (763075-W) or any Shariah adviser appointed for the Shariahcompliant Fund which includes its permitted assigns, successors in title and any
new or replacement Shariah adviser.
8
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
Shariah requirements
A phrase or expression which generally means making sure that any human
conduct must not involve any prohibition and that in performing that conduct all the
essential elements that make up the conduct must be present and each essential
element must meet all the necessary conditions required by the Shariah for that
element.
short-term bonds
Bonds with a remaining tenure not exceeding 5 years.
short to medium-term investment horizon
An investment horizon which is below 10 years.
single pricing
Means the pricing of all unit trust funds shall be based on a single price which is
the NAV per Unit of the Fund.
Sukuk
Refers to certificates of equal value which evidence undivided ownership or
investment in the assets using Shariah principles and concepts approved by the
SAC (Shariah Advisory Council of the Securities Commission)[1].
[1]
Extracted from Securities Commission Malaysia, Guidelines on Sukuk; Revised:
28 November 2012, Effective: 28 November 2012.
switching of Units
Refers to switching of Units from one Fund to another Fund under the same
Unitholder’s account.
the Funds/the Fund
The following funds covered under this Replacement Master Prospectus are
collectively called the Funds and individually called the Fund.
•
Kenanga Blue Chip Fund
•
Kenanga Growth Opportunities Fund
•
Kenanga Shariah Growth Opportunities Fund
•
Kenanga Ekuiti Islam Fund
•
Kenanga Managed Growth Fund
•
Kenanga Diversified Fund
•
Kenanga Shariah Balanced Fund
•
Kenanga Income Plus Fund
•
Kenanga Bon Islam Fund
•
Kenanga Cash Plus Fund
•
Kenanga i-Enhanced Cash Fund
the Shariah Funds
Refers to Kenanga Shariah Growth Opportunities Fund, Kenanga Ekuiti Islam
Fund, Kenanga Shariah Balanced Fund, Kenanga Bon Islam Fund and Kenanga iEnhanced Cash Fund.
transfer of Units
Refers to Units being transferred from one Unitholder’s account to another
Unitholder’s account.
Trustee
Refers to CIMB Commerce Trustee Berhad (313031-A).
Unit
The unit of the Fund and where applicable includes a fraction of a unit.
Unitholder
The person for the time being registered under the provision of the Deed as the
holder of Units of a Fund.
9
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
2. CORPORATE DIRECTORY
The Management Company
Kenanga Investors Berhad (353563-P)
Registered Office:
8th Floor, Kenanga International,
Jalan Sultan Ismail,
50250 Kuala Lumpur, Malaysia
Tel: 03-2162 1490; Fax: 03-2161 4990
Business Office:
Suite 12.02, 12th Floor, Kenanga International
Jalan Sultan Ismail,
50250 Kuala Lumpur, Malaysia
Tel: 03-2057 3688 / 03-2713 3188
Fax: 03-2161 8807 / 03-2713 5868
Email: [email protected]
Website: www.KenangaInvestors.com.my
Regional Branch Offices:
Kuala Lumpur
Suite 12.02, 12th Floor, Kenanga International
Jalan Sultan Ismail,
50250 Kuala Lumpur, Malaysia
Tel: 03-2057 3688 / 03-2713 3188
Fax: 03-2161 8807 / 03-2713 5868
Petaling Jaya
Unit B-6-2, Sunway Giza Mall
Dataran Sunway, PJU 5/14
Kota Damansara
47810 Petaling Jaya, Selangor
Tel: 03-6148 1871, 6150 3983 Fax: 03-6148 1872
Klang
No. 12 Jalan Batai Laut 3, Taman Intan
41300 Klang, Selangor Darul Ehsan
Tel:03-3341 8818, 3348 7889 Fax:03-3341 8816
Penang
Blok A, Aras 3,
Wisma Perkeso
No. 269, Jalan Burma
10538 George Town, Penang
Tel: 04-226 4880 Fax: 04-226 5120
Ipoh
No. 5A, Persiaran Greentown 9
Greentown Business Centre
30450 Ipoh ,
Perak Darul Ridzuan
Tel: 05-254 7573/7570 Fax: 05-254 7606
Melaka
No. 25-1 Jalan Kota Laksamana 2/17
Taman Kota Laksamana Seksyen 2
75200 Melaka
Tel: 06-281 8913, 282 0518 Fax: 06-281 4286
Johor Bahru
Lot 11.03, 11th Floor, Menara MSC Cyberport
5 Jalan Bukit Meldrum
80300 Johor Bahru , Johor
Tel: 07-223 7505/4798 Fax: 07-223 4802
Kuching
1st Floor, No 71, Lot 7
Lot 10900, Jalan Tun Jugah
93350 Kuching, Sarawak
Tel: 082-572 228 Fax: 082-572 229
Level 1, Wisma Mahmud,
Jalan Sungai Sarawak,
93100 Kuching, Sarawak, Malaysia
Tel: 082-343 022 / 082-343 032
Fax: 082-343 066 / 082-343 016
Kota Kinabalu
A-03-11, 3rd Floor
Block A Warisan Square
Jalan Tun Fuad Stephens
88000 Kota Kinabalu, Sabah
Tel: 088-447 089/448 106 Fax: 088-447 039
Lot 47, No. 20, 1st Floor, Damai Plaza
Phase 4, Block F, Lorong Pokok Kayu Manis II,
88300 Kota Kinabalu, Sabah, Malaysia
Tel: 088-269 678 / 088-254 678
Fax: 088-259 678
Agency Office
Miri (Sarawak)
c/o Lot 1084, 2nd Floor,
Jalan Merpati
98000 Miri
Sarawak, Malaysia
Tel: 085-427 782
Seremban
Suite 08-3, Seremban City Centre
Jalan Pasar
70000 Seremban
Tel: 06-761 5678 Fax: 06-761 2243
Institutional Unit Trust Advisers
Banks
1. Kenanga Investment Bank Berhad
2. Hong Leong Bank Berhad
3. AmBank (M) Berhad
4. United Overseas Bank (Malaysia) Berhad
5. Standard Chartered Bank Malaysia Berhad
6. CIMB Bank Berhad
7. Alliance Bank (Malaysia) Berhad
8. Kuwait Finance House (Malaysia) Berhad
9. Bank Muamalat Malaysia Berhad
Non-Banks
1. Philip Mutual Berhad
10
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
Board of Directors
Datuk Syed Ahmad Alwee Alsree (Chairman)
Syed Zafilen Syed Alwee (Independent director)
YM Raja Dato’ Seri Abdul Aziz bin Raja Salim (Independent director)
Vivek Sharma (Independent director)
Bruce Kho Yaw Huat
Abdul Razak bin Ahmad
Peter John Rayner
Investment Committee
Bruce Kho Yaw Huat (Chairman)
Syed Zafilen Syed Alwee (Independent member)
Vivek Sharma (Independent member)
Abdul Razak bin Ahmad
•
Peter John Rayner
Company Secretary
Norliza Abd Samad (MAICSA 7011089)
Business Office:
9th Floor, Kenanga International,
Jalan Sultan Ismail,
50250 Kuala Lumpur, Malaysia
Trustee:
CIMB Commerce Trustee Berhad (313031-A)
Registered Office:
5th Floor Bangunan CIMB
Jalan Semantan
Damansara Heights
50490 Kuala Lumpur
Tel: 03-2084 8888
Fax: 03-2093 9688
Web:http://cimb.com
Business Office:
Level 7, Wisma Amanah Raya Berhad
Jalan Semantan, Damansara Heights
50490 Kuala Lumpur
Tel: 03-2084 8888
Fax: 03-2095 5473
Trustee’s Delegate:
CIMB Group Nominees (Tempatan) Sdn Bhd (274740-T)
Registered Office:
5th Floor, Bangunan CIMB
Jalan Semantan
Damansara Heights
50490 Kuala Lumpur
Tel : 03-2084 8888
Fax: 03-2093 9688
Place of Business:
Level 7, Wisma Amanah Raya Berhad
Jalan Semantan
Damansara Heights
50490 Kuala Lumpur
Tel : 03-2084 8888
Fax: 03-2093 3720
Web:http://cimb.com
Federation of Investment Managers Malaysia
19-07-3, 7th Floor, PNB Damansara
19, Lorong Dungun, Damansara Heights
50490 Kuala Lumpur
Tel: 03-2093 2600
Fax: 03-2093 2700
Shariah adviser
IBFIM (763075-W)
Registered Office:
Level 149A, 149B, 151B
Persiaran Raja Muda Musa
42000 Port Klang
Selangor Darul Ehsan
Business Address:
3rd Floor, Menara Takaful Malaysia
Jalan Sultan Sulaiman
50000 Kuala Lumpur
Tel: 03-2031 1010
Fax: 03-2078 5250
Web:www.ibfim.com
Auditor
Ernst & Young (AF:0039)
Taxation adviser
Ernst & Young Tax Consultants Sdn. Bhd. (179793-K)
Business Address:
Level 23A, Menara Millennium
Jalan Damanlela
Pusat Bandar Damansara
50490 Kuala Lumpur
Tel: 03-7495 8000
Business Address:
Level 23A, Menara Millennium
Jalan Damanlela
Pusat Bandar Damansara
50490 Kuala Lumpur
Tel: 03-7495 8000
11
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
Independent Legal Adviser
Naqiz & Partners
No. 42A, Lorong Dungun
Damansara Heights
50490 Kuala Lumpur, Malaysia
Principal Bankers
Standard Chartered Bank Malaysia Berhad (115793 P)
Registered Address:
Level 16, Menara Standard Chartered
30 Jalan Sultan Ismail
50250 Kuala Lumpur
50490 Kuala Lumpur
Tel: 03-2177 7800
Fax: 03-2117 6006
Public Bank Berhad (6463-H)
Registered Address:
86 Jalan Raja Chulan
50200 Kuala Lumpur
Tel: 03-2176 6000
Fax: 03-2164 4418
RHB Bank Berhad
Registered Address:
RHB Centre
Jalan Tun Razak
50350 Kuala Lumpur, Malaysia
12
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
3. KEY DATA OF KENANGA ONEANSWERTM, KENANGA CASH PLUS FUND AND KENANGA i-ENHANCED CASH
FUND
This section is only a summary of the salient information about the Funds and that you should read and understand
the whole Replacement Master Prospectus before making investment decisions.
3.1 INFORMATION SUMMARY
Management Company: Kenanga Investors Berhad (620077-K)
Trustee: CIMB Commerce Trustee Berhad (313031-A)
Category/
type
Kenanga
Blue Chip
Fund
Kenanga OneAnswerTM
(For more
information,
please refer to
item 5.2.1)
Kenanga
Growth
Opportunities
Fund
(For more
information,
please refer to
item 5.2.2)
Investment
objective of
the Fund
Investment strategy
Asset
allocation
ranges
Performance
benchmark
Principal
risks of
investing
The Fund will
Equities:
FBM 100
• Market
construct a diversified 50% – 98% of
risk
investment portfolio
the Fund’s
• Stockthat consists of
NAV.
specific
fundamentally sound
risk
companies that have
Fixed income
• Liquidity
large market
securities/
risk
capitalization¹ and are cash:
dividends paying. The 2% – 50% of
Fund may invest up
the Fund’s
to 98% of its NAV in
NAV.
such companies.
These companies are
generally referred to
as ‘blue chip’
companies.
* Long-term refers to a period of 7 years and above.
^ Relatively larger market capitalization refers to companies with market capitalization of more than
RM 4 billion at the point of purchase.
¹ The Fund will invest in companies with market capitalization of more than RM4 billion at the point of
purchase.
Equity/
Income &
Growth
The Fund
aims to
achieve longterm* capital
growth
through
investments in
companies
that have
relatively
larger market
capitalization^.
Equity/
Growth
The Fund
aims to
achieve
consistent
capital
appreciation
over the longterm* by
primarily
investing in
relatively
smaller
capitalized
companies^
with good
growth
prospects².
The Fund is an equity
growth fund that is
actively managed
based on both
quantitative and
qualitative disciplines.
Its strategy is to
invest in companies¹
that are likely to yield
higher earnings
growth than the
market average.
Equities:
70% – 98%
of the Fund’s
NAV.
• Market
FBME
risk
• Stock-
specific
risk
• Liquidity
risk
Fixed income
securities/
cash:
2% – 30% of
the Fund’s
NAV.
* Long-term refers to a period of 7 years and above.
^ Relatively smaller capitalized companies refers to companies with market capitalization of less than
RM4 billion at the point of purchase.
¹ The Fund will invest in companies with market capitalization of less than RM4 billion at the point of
purchase.
² Good growth prospects refers to companies with higher earnings growth than the market average.
13
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
Category/
type
Kenanga
Shariah
Growth
Opportunities
Fund
Islamic
Equity/
Growth
(For more
information,
please refer to
item 5.2.3)
Kenanga
Ekuiti Islam
Fund
Islamic
Equity/
Growth
Kenanga OneAnswerTM
(For more
information,
please refer to
item 5.2.4)
Kenanga
Managed
Growth Fund
(For more
information,
please refer to
item 5.2.5)
Balanced/
Income &
Growth
Investment
objective
of the
Fund
The Fund
aims to
achieve
consistent
capital
appreciation
over the
long-term*
by primarily
investing in
Shariahcompliant
securities
with good
growth
prospects#.
Investment
strategy
Asset
allocation
ranges
The Fund is an
Islamic equity
growth fund that is
actively managed
based on both
quantitative and
qualitative
disciplines. Its
strategy is to invest
in Shariahcompliant securities
that are likely to
yield higher
earnings growth
than the market
average.
Shariahcompliant
equities:
70% – 98%
of the
Fund’s NAV.
The Fund
aims to
achieve
long-term*
capital
growth
through
investment
in Shariahcompliant
securities.
Investments are on
Shariah-compliant
securities i.e.
equities that offer
medium-term^
earnings growth
and that are
inexpensively
priced¹. Firstly, the
strategy begins with
a thorough
macroeconomic
analysis and
determining the
investable universe
of stocks for the
Fund.
Shariahcompliant
equities:
50% – 98%
of the
Fund’s NAV.
The Fund
aims to
achieve
long-term*
capital
growth
through
diversified
investments
in equities
and bonds.
The Fund invests in
a mixture of
equities, bonds and
money market
instruments. The
Fund engages
active tactical
allocation between
asset classes with
emphasis on
managed growth
and selects
securities based on
current earnings,
growth prospects
and potential for
capital appreciation
as well as income
distribution. Tactical
asset allocation
between assets and
sectors is
determined by
analyzing the
economy, which
influences the
business cycle, and
market factors.
Equities:
40% - 60%
of the
Fund’s NAV.
Performance
benchmark
Principal risks
of investing
FBMS
• Market risk
• Stock-
specific risk
• Liquidity risk
• Reclassifica-
tion of
Shariah
status risk
Sukuk/
cash:
2% – 30% of
the Fund’s
NAV.
FBMS
• Market risk
• Stock-
specific risk
• Liquidity risk
• Reclassifica-
tion of
Shariah
status risk
Sukuk/
cash:
2% – 50% of
the Fund’s
NAV.
Fixed
income
securities/
cash:
40% - 60%
of the
Fund’s NAV.
A composite
of FBM 100
(50%) & the
All MGS
Index (50%).
• Stock-
specific risk
• Market risk
• Liquidity risk
• Reinvestment
risk
• Credit/default
risk
• Interest rate
risk
• Counterparty
risk
* Long-term refers to a period of 7 years and above.
^ Medium-term refers to a period of between 5 -7 years.
¹ Inexpensively priced refers to equities that have a lower price earnings ratio compared with the industry average.
# Good growth prospects refers to companies with higher earnings growh than the market average.
14
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
Category/ type
Kenanga
Diversified
Fund
Mixed Asset/
Income &
Growth
Kenanga OneAnswerTM
(For more
information,
please refer to
item 5.2.6)
Kenanga
Shariah
Balanced
Fund
(For more
information,
please refer to
item 5.2.7)
Islamic
Balanced/
Income &
Growth
Investment
objective
of the Fund
Investment
strategy
Asset
allocation
ranges
This Fund
aims to
provide
investors
capital
appreciation
with stability
of income
over a
medium to
long-term*
investment
horizon
from a
diversified
investment
portfolio.
The Fund’s asset
allocation includes
a mixture of equity
securities, fixed
income securities
and money
market
instruments. The
maximum equity
weighting is
limited to 70% of
the Fund’s NAV.
In times of actual
or anticipated
adverse market
conditions, the
equity exposure
may be reduced.
The Fund
engages active
tactical asset
allocation
between the asset
classes which is
determined by
analyzing the
economy, which
influences the
business cycle,
and market
factors.
Equities: 20%
- 70% of the
Fund’s NAV.
The Fund
aims to
achieve
long-term^
capital
growth
through
diversified
investments
in equities,
fixed
income and
money
market
instruments
which are
Shariahcompliant.
The Fund aims to
invest in a
balanced mix
between Shariahcompliant
equities, sukuk
and Islamic
money market
instruments. The
Fund’s Shariahcompliant equity
exposure ranges
from 40% to 60%
of the Fund’s
NAV, with the
remaining
consisting of
sukuk and Islamic
money market
instruments.
Shariahcompliant
equities: 40%
- 60% % of
the Fund’s
NAV.
Fixed income
securities/
cash:
30% - 80% of
the Fund’s
NAV.
Sukuk/
Islamic
money
market
instruments:
40% – 60%
% of the
Fund’s NAV.
Performance
benchmark
Principal risks
of investing
A composite
of FBM 100
(60%) and All
MGS Index
(40%).
• Market Risk
• Interest Risk
• Credit/default
risk
• Liquidity risk
• Reinvestment
risk
• Counterparty
risk
A composite
of FBMS
(50%) and
the All
Malaysian
Government
Investment
Issue (50%).
• Market risk
• Interest rate
risk
• Credit/default
risk
• Reinvestment
risk
• Counterparty
risk
• Reclassifica-
tion of
Shariah
status risk
* Medium to long-term refers to a period of 5 years or longer.
^ Long-term refers to a period of 7 years and above.
15
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
Category
/ type
Kenanga Income
Plus Fund
Bond/
Income
Kenanga OneAnswerTM
(For more
information,
please refer to
item 5.2.8)
Kenanga Bon
Islam Fund
Islamic
Bond/
Income
(For more
information,
please refer to
item 5.2.9)
Kenanga Cash Plus
Fund
(For more information,
please refer to item
5.3.2)
Fixed
Income/
Income
Investment
objective of
the Fund
Investment strategy
Asset
allocation
ranges
The Fund
aims to
provide
investors with
a regular
income*
stream
through
investments
in bonds and
money
market
instruments.
The Fund invests in
securities that have a
minimum rating of
“investment grade”
i.e. rated at least
BBB- by RAM or
equivalent rating by
MARC or other rating
agencies.
Bonds:
50% - 98% %
of the Fund’s
NAV.
The Fund
aims to
provide
investors with
a regular
income*
stream
through
investments
in Islamic
bonds and
Islamic
money
market
instruments.
The Fund invests in a
diversified portfolio of
sukuk and Islamic
money market
instruments. The
Fund invests in sukuk
that have a minimum
rating of “investment
grade” i.e. rated at
least BBB- by RAM or
equivalent rating by
MARC or other rating
agencies.
Sukuk:
50% - 98%%
of the Fund’s
NAV.
The Fund
aims to
provide
investors a
regular
stream of
income*
through
investments
in short to
mediumterm^ fixed
income
instruments
with high
level of
liquidity¹.
To achieve the
objective of the Fund,
it will invest in high
quality short to
medium-term^ fixed
income instruments
with minimum credit
ratings of A3 or P2
(by RAM) or
equivalent rating by
other recognized
rating agencies.
Bonds:
0% - 50%
Performance
benchmark
All MGS
Index.
Principal risks
of investing
• Market risk
• Interest rate
risk
• Liquidity risk
• Reinvestment
Cash:
2% - 50%%
of the Fund’s
NAV.
risk
• Credit/default
risk
• Counterparty
risk
All Malaysian
Government
Investment
Issue.
• Interest rate
risk
• Liquidity risk
• Reinvestment
risk
• Credit/default
Cash:
2% - 50%%
of the Fund’s
NAV.
Cash/ money
market
instruments:
50% - 100%
risk
• Counterparty
risk
Maybank 1month fixed
deposit rate
• Market risk
• Liquidity risk
• Interest rate
risk
Credit/default risk
* Income will be reinvested into additional Units into the Fund unless Unitholders request for cheques to
be sent to them.
^ Short to medium-term refers to a period of 3 – 5 years.
¹ High level of liquidity refers to fixed income instruments that are very liquid and can be sold off easily.
16
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
Kenanga iEnhanced Cash
Fund
(For more
information, please
refer to item 5.4.2)
Category
/ type
Investment
objective of
the Fund
Investment strategy
Asset
allocation
ranges
Performance
benchmark
Principal risks
of investing
Islamic
Fixed
Income/
Income
The Fund
aims to
provide
investors a
regular
stream of
income* and
high level of
liquidity^ to
meet cash
flow
requirement
while
maintaining
capital
preservation¹.
To achieve the
objective of the Fund,
it will invest in high
quality short to
medium-term² Sukuk
with minimum credit
ratings of A3 or P2
(by RAM) or
equivalent rating by
MARC.
Sukuk:
0% - 60% %
of the Fund’s
NAV.
Maybank 1month GIA
rate.
• Market risk
• Liquidity risk
• Interest rate
risk
• Credit/defaul
Cash/ Islamic
money
market
instruments:
40% - 100%
of the Fund’s
NAV.
t risk
* Income will be reinvested into additional Units into the Fund unless Unitholders request for cheques
to be sent to them.
^ High level of liquidity refers to the liquidity of the Fund, where Unitholders receive their redemption
proceeds faster as compared to other retail funds. As per stated in item 5.4.2, period of redemption
proceeds for this Fund is the next Business Day after the redemption application is received by the
Management Company at or before 4.00 p.m. on a Business Day.
¹ The Fund is not a capital protected nor a capital guaranteed fund.
² Short to medium-term refers to a period of 3 -5 years.
Kenanga OneAnswerTM
Suitable for investors who:
Suggested
minimum
investment
timeframe
Kenanga Blue
Chip Fund
• Are seeking high capital growth;
• Have relatively medium to high-risk profiles
and can withstand significant short-term
volatilities;
• Have long-term investment horizon.
5 years
Kenanga
Growth
Opportunities
Fund
• Are seeking high capital growth;
• Have relatively high-risk profiles and can
withstand significant short-term volatilities;
• Have long-term investment horizon.
5 years
Kenanga
Shariah
Growth
Opportunities
Fund
• Are seeking high capital appreciation from
Shariah-compliant securities;
• Have moderate to high-risk tolerance and
can withstand significant short-term
volatilities;
• Have medium to long-term investment
horizon.
5 years
Kenanga Ekuiti
Islam Fund
• Are seeking high capital growth from
Shariah-compliant securities;
• Have relatively high-risk profiles and can
withstand significant short-term volatilities;
• Have long-term investment horizon.
5 years
For further
details,
refer to
item:
Income
distribution policy
Income (if any) will
be distributed
annually on a best
effort basis.
5.2.1
5.2.2
Income (if any) as
secondary
objective, is paid
annually.
5.2.3
5.2.4
Income (if any) will
be distributed
annually on a best
effort basis.
17
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
Suitable for investors who:
Kenanga OneAnswerTM
Kenanga
Managed
Growth Fund
• Are seeking a combination of both capital
appreciation with income distribution;
• Have moderate risk tolerance and can
withstand short-term volatility;
• Have long-term investment horizon.
Suggested
minimum
investment
timeframe
For further
details,
refer to
item:
Income
distribution policy
4 years
5.2.5
Income (if any) will
be distributed
annually on a best
effort basis.
Kenanga
Diversified
Fund
• Are seeking a combination of capital
appreciation with a modest level of
income;
• Have moderate risk tolerance and can
withstand short-term volatility;
• Have medium to long-term investment
horizon.
4 years
Kenanga
Shariah
Balanced Fund
• Are seeking returns from a Shariahcompliant fund which has potentially lower
volatility compared to an equity fund;
• Have medium to long-term investment
horizon.
4 years
Income (if any) as
secondary
objective, is paid
annually.
5.2.7
Kenanga
Income Plus
Fund
• Are seeking regular income;
• Have low to moderate risk tolerance;
• Have short to medium-term investment
horizon.
3 years
Income (if any) will
be distributed twice
a year on a best
effort basis.
5.2.8
Kenanga Bon
Islam Fund
• Are seeking regular income from a
portfolio of sukuk;
• Have low to moderate risk tolerance;
• Have short to medium-term investment
horizon.
3 years
Income (if any) will
be distributed twice
a year on a best
effort basis.
5.2.9
Kenanga Cash Plus
Fund
•
•
•
•
Kenanga i-Enhanced
Cash Fund
•
•
•
•
5.2.6
Desire a steady stream of income;
Have low tolerance of investment risks;
Want a highly liquid investment portfolio;
Want a low-risk fund as part of the asset
allocation strategy;
Have short to medium-term investment
horizon.
6 months
The Fund aims to
distribute income
monthly.
5.3.2
Desire a steady stream of income;
Have low tolerance of investment risks;
Want a highly liquid investment portfolio;
Want a low-risk fund as part of the asset
allocation strategy;
• Want pricing stability to ensure
preservation of capital;
• Have short-term investment horizon.
6 months
The Fund aims to
distribute income
monthly.
5.4.2
18
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
3.2 FEES AND CHARGES
Kenanga OneAnswerTM
This table describes the charges that you may directly incur when you purchase, redeem, switch or transfer Units in the Fund.
Entry fee
Entry fee
(More information on item 8.2.1 and 9.4)
(For EPF members’ investment scheme)
This fee is negotiable.
This fee is negotiable.
Internet
Internet
Distribution channel IUTA
CUTA
Direct Sales
IUTA
CUTA
Direct Sales
Online
Online
Kenanga Blue Chip
Fund
Kenanga Growth
3.0% of NAV per Unit of the Fund
Opportunities Fund
(Maximum entry fee)
Kenanga Shariah
Growth Opportunities
Fund
6.5% of NAV per Unit of the Fund (Maximum
Kenanga Ekuiti Islam
Not available
entry fee)
Fund
Kenanga Managed
Growth Fund
Not
Kenanga Diversified
3.0% of NAV per Unit of the Fund
available
Fund
(Maximum entry fee)
Kenanga Shariah
Balanced Fund
Kenanga Income Plus
Fund
Kenanga Bon Islam
Fund
Kenanga Cash Plus
Fund
Kenanga i-Enhanced
Cash Fund
Not available
1.5% of NAV per Unit of the Fund
1.5% of NAV per Unit of the Fund
Nil
Not available
Nil
Unitholders will be required to pay the differential of entry fee when switching from lower entry fee Funds to higher
entry fee Funds. For more information, please refer to item 9.6.
All the fees and charges above may be increased. A supplementary master prospectus disclosing the new fees and
charges will be issued should the fees and charges be increased. A notice period of 30 days will be given to the
Unitholders prior to the effective date of the new fees and charges, which is in accordance with the Guidelines as may
be amended and/or updated from time to time. The fees and charges that may be increased will be in line with the
maximum fees and charges in the Deed.
19
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
Redemption charge
(For more information
please refer to item
8.2.2)
Kenanga OneAnswerTM
Kenanga Blue Chip
Fund
Kenanga Growth
Opportunities Fund
Kenanga Shariah
Growth Opportunities
Fund
Kenanga Ekuiti Islam
Fund
Kenanga Managed
Growth Fund
Kenanga Diversified
Fund
Kenanga Shariah
Balanced Fund
Kenanga Income Plus
Fund
Kenanga Bon Islam
Fund
Kenanga Cash Plus
Fund
Kenanga i-Enhanced
Cash Fund
Nil
Switching fee
(For more information
please refer to item 9.6)
Nil
Transfer
fee
Nil
Dilution fee/
transaction
cost factor
Other charges
Nil
For investment
payment through
auto debit, RM5 is
deducted from the
next auto debit
amount if there are
insufficient funds in
your bank account.
The balance will
then be applied to
the relevant
investment account.
This charge is not
negotiable.
This table describes the charges that you may indirectly incur when you invest in the Fund.
Annual management fee
(For more information please refer to item
8.3.1)
Kenanga OneAnswerTM
Kenanga Blue Chip
Fund
Kenanga Growth
Opportunities Fund
Kenanga Shariah
Growth Opportunities
Fund
Kenanga Ekuiti Islam
Fund
Kenanga Managed
Growth Fund
Kenanga Diversified
Fund
Kenanga Shariah
Balanced Fund
Kenanga Income Plus
Fund
Kenanga Bon Islam
Fund
Kenanga Cash Plus
Fund
Kenanga i-Enhanced
Cash Fund
Annual trustee fee
(For more information please refer to
item 8.3.2)
Other
indirect
fees
1.55% of Fund’s
NAV
This fee is calculated
and accrued daily and
payable monthly to the
Management
Company.
0.07% of Fund’s
NAV
or a minimum of
RM18,000 per
annum. This fee is
calculated and
accrued daily and
paid monthly to the
Trustee.
Nil
1.00% of Fund’s
NAV
Up to 0.75% of
Fund’s NAV
0.07% of Fund’s
NAV
0.08% of Fund’s
NAV
The annual management fee and annual trustee fee may be increased. A supplementary master prospectus disclosing
the annual management fee and annual trustee fee will be issued should the fees be increased. A notice period of 90
days will be given to the Unitholders prior to the effective date of the new fees and charges, which is in accordance
with the Guidelines as may be amended and/or updated from time to time. The annual management fee and annual
trustee fee that may be increased will be in line with the maximum fees and charges in the Deed.
20
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
3.3 TRANSACTIONS
Regular withdrawal program
Minimum
initial
investment
Minimum
Minimum/
additional
Frequency of
investment (per redemption
fund)
Minimum
holdings/
switching
/transfer
amount
Minimum
investment
balance per
fund
Kenanga OneAnswerTM
Kenanga Blue Chip
Fund
Kenanga Growth
Opportunities Fund
Kenanga Shariah
RM1,000 to
Growth Opportunities
open an
Fund
Kenanga
Kenanga Ekuiti Islam
OneAnswerTM
Fund
investment
Kenanga Managed
RM100
1,000 Units
10,000 Units
account. The
Growth Fund
amount is then
1,000 Units/
Kenanga Diversified
allocated to
unlimited
Fund
your choice of
Kenanga Shariah
funds.
Balanced Fund
Kenanga Income Plus
Fund
Kenanga Bon Islam
Fund
Kenanga Cash Plus
Fund
RM10,000
RM5,000
5,000 Units
Kenanga i-Enhanced
Cash Fund
or such amounts as we may from time to time decide.
Minimum
monthly
withdrawal
RM250
1,000 Units
We reserve the right to vary the above minimum amount from time to time by providing at least 30 days notification to
the Unitholders in writing before the effective date of the change.
3.4 OTHER INFORMATION
Kenanga OneAnswerTM
Existing Deed
Kenanga Blue Chip Fund
Kenanga Growth
Opportunities Fund
Kenanga Shariah Growth
Opportunities Fund
Kenanga Ekuiti Islam Fund
Kenanga Managed Growth
Fund
Kenanga Diversified Fund
Expenses directly related to
the Funds
(For more information please
refer item 8.5)
16 April 2004;
Supplementary Deed
• Supplementary Deed dated 5 October 2005
• Second Supplementary Deed dated 10 April 2007
• Third Supplementary Deed dated 1 November 2007
• Fourth Supplementary Deed dated 3 April 2008
• Fifth Supplementary Deed dated 23 September 2009
Kenanga Shariah Balanced • Sixth Supplementary Deed dated 11 August 2010
Fund
• Seventh Supplemental Deed dated 15 May 2013
Kenanga Income Plus Fund
Kenanga Bon Islam Fund
•
•
•
•
Tax adviser fees
Annual/interim reports
Auditor’s fees
All fees authorized by
the Deed
21
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
Existing Deed
Kenanga Cash Plus Fund
29 August 2006;
Supplementary Deed
• First Supplemental Deed dated 15 May 2013.
Kenanga i-Enhanced Cash
Fund
Expenses directly related to
the Funds
(For more information please
refer item 8.5)
4 July 2007;
•
•
•
•
Tax adviser fees
Annual/interim reports
Auditor’s fees
All fees authorized by
the Deed
Supplementary Deed
• First Supplemental Deed dated 15 May 2013.
For advice or more information on the Funds, please contact your KIB advisers or any of our authorized distributors (see list on
item 2) or call our investor services centre at 1800-99-3737 or 03-2173 3188.
•
•
•
•
There are fees and charges involved and investors are advised to consider them before investing in the Funds.
Unit prices and distributions payable, if any, may go down as well as up.
Past performance of the Funds is not an indication of its future performance.
For information concerning certain risk factors which should be considered by prospective investors, see “risk
factors” commencing on page 23.
22
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
4. RISK FACTORS
4.1 GENERAL RISKS OF INVESTING IN A UNIT TRUST FUND
The following are some risks involved when you invest in unit trust funds:
Market risk
The market price of securities owned by a unit trust fund might go down or up, sometimes rapidly or unpredictably. Securities
may decline in value due to factors affecting securities markets generally or particular industries represented in the securities
markets. Equity securities generally have greater price volatility than fixed income securities/sukuk.
Interest rate risk
This risk refers to the effect of interest rate changes on the market value of a bond/sukuk portfolio. In the event of rising interest
rates, prices of fixed income securities/demand for sukuk will decrease and vice versa. Meanwhile, bonds/sukuk with longer
maturity and lower coupon/profit rate are more sensitive to interest changes. The risk will be mitigated via the management of
the duration structure of the fixed income/sukuk portfolio.
As for Shariah-compliant unit trust funds, interest rate will have an impact on the management of the funds regardless of
whether they are Shariah-compliant unit trust funds or otherwise. This does not in any way suggest that the Shariah-compliant
unit trust funds will invest in conventional financial instruments. All the investments carried out for the Shariah-compliant unit
trust funds are in accordance with Shariah requirements.
Management company risk
Unit trust funds are managed by the Management Company and the expertise, experience and investment process of the
investment team would affect the performance of the fund. Poor management of a unit trust fund may jeopardize the investment
of each investor.
Credit/default risk
A unit trust fund could lose money if the issuer or guarantor of a fixed income security/sukuk, or the counterparty to a
derivatives contract, redemption agreement or a loan of portfolio securities, is unable or unwilling to make timely principal
and/or interest/profit payments, or to otherwise honour its obligations. Securities are subject to varying degrees of credit/default
risk, which are often reflected in credit ratings.
Inflation risk
A unit trust fund is subject to the risk of an investor’s investment not growing proportionately to the inflation rate decreasing the
investor’s purchasing power even though the investment in monetary terms has increased.
Reinvestment risk
Reinvestment risk arises when an issuer of bonds/sukuk decides to exercise its right to pay the principal on an obligation earlier
than the expected maturity date, especially during times of declining interest rates. Consequently, a fund may experience lower
returns due to reinvesting in lower yielding securities.
Liquidity risk
Liquidity risk exists when particular investments are difficult to purchase or sell, possibly preventing a unit trust fund from selling
such illiquid securities at an advantageous time or price. Unit trust funds with principal investment strategies that involve foreign
securities, derivatives or securities with substantial market and/or credit/default risk tend to have the greatest exposure to
liquidity risk.
Counterparty risk
Counterparty risk occurs when a financial institution that has entered into a securities trade defaults on its obligations under the
agreement. A fund may encounter unit price volatility due to this risk arising.
Country risk
If a fund invests in foreign markets, the foreign investments portion of the fund may be affected by risks specific to the country
which it invests in. Such risks include changes in the country’s economic fundamentals, social and political stability, currency
movements and foreign investment policies. These factors may have impact on the prices of the securities that the fund
invested in.
Currency risk
It is a risk associated with investments that are in foreign currencies denomination. When the foreign currencies fluctuate in an
unfavorable movement against the RM, the investment may face currency loss in addition to the capital gains/ losses. This will
lead to a lower NAV of the fund.
Risk of non-compliance
The operations and administrations of the funds by the Management Company or its delegates are governed by the Deed, all
applicable laws and regulations or internal policies and procedures. Non-compliance may affect a unitholder’s investment goals.
Stock-specific risk
The value of each individual stock that a unit trust fund invests in may decline for a number of reasons which is directly related
to the issuer, such as, the management performance, financial position and reduced demand for the issuer’s goods or services.
23
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
Limitations to redemptions
In certain circumstances, with the consent of the Fund’s Trustee, we may suspend redemptions for as long as they consider
necessary. This will only be carried out if the interest of the investors will be materially affected if the repurchase of the units
were not suspended.
Loan financing risk
The inherent risk of investing with borrowed money, which includes the ability for you to service the loan repayments and the
effect of increase in interest rates on the loan repayments and your ability to provide additional collateral should unit trust prices
fall beyond a certain level.
4.2 SPECIFIC AND PECULIAR RISKS WHEN INVESTING IN KENANGA ONEANSWERTM, KENANGA CASH PLUS FUND
and KENANGA i-ENHANCED CASH FUND
Specific and peculiar risks
Kenanga OneAnswerTM
Kenanga Blue Chip Fund
Kenanga Growth Opportunities Fund
Kenanga Shariah Growth
Opportunities Fund*
Kenanga Ekuiti Islam Fund*
Kenanga Managed Growth Fund
Kenanga Diversified Fund
Kenanga Shariah Balanced Fund*
Kenanga Income Plus Fund
Kenanga Bon Islam Fund
Kenanga Cash Plus Fund
Kenanga i-Enhanced Cash Fund
Market risk, Stock-specific risk, Liquidity risk and Derivatives/structured products
risk.
Market risk, Interest rate risk, Credit/default risk, Reinvestment risk, Liquidity risk,
Counterparty risk, Stock-specific risk and Derivatives/structured products risk.
Market risk, Interest rate risk, Credit/default risk, Reinvestment risk, Liquidity risk
and Counterparty risk.
* These Shariah-compliant Funds are also exposed to the reclassification of Shariah status risk.
Market risk
The market price of securities owned by a unit trust fund might go down or up, sometimes rapidly or unpredictably. Securities
may decline in value due to factors affecting securities markets generally or particular industries represented in the securities
markets. Equity securities generally have greater price volatility than fixed income securities/sukuk.
Interest rate risk
This risk refers to the effect of interest rate changes on the market value of a bond/sukuk portfolio. In the event of rising interest
rates, prices of fixed income securities/demand for sukuk will decrease and vice versa. Meanwhile, bonds/sukuk with longer
maturity and lower coupon/profit rate are more sensitive to interest changes. The risk will be mitigated via the management of
the duration structure of the fixed income/sukuk portfolio.
As for Shariah-compliant unit trust funds, interest rate will have an impact on the management of the funds regardless of
whether they are Shariah-compliant unit trust funds or otherwise. This does not in any way suggest that the Shariah-compliant
unit trust funds will invest in conventional financial instruments. All the investments carried out for the Shariah-compliant unit
trust funds are in accordance with Shariah requirements.
Credit/default risk
A unit trust fund could lose money if the issuer or guarantor of a fixed income security/sukuk, or the counterparty to a
derivatives contract, redemption agreement or a loan of portfolio securities, is unable or unwilling to make timely principal
and/or interest/profit payments, or to otherwise honour its obligations. Securities are subject to varying degrees of credit/default
risk, which are often reflected in credit ratings.
Reinvestment risk
Reinvestment risk arises when an issuer of bonds/sukuk decides to exercise its right to pay principal on an obligation earlier
than the expected maturity date, especially during times of declining interest rates. Consequently, a fund may experience lower
returns due to having to reinvest in lower yielding securities.
Liquidity risk
Liquidity risks exist when particular investments are difficult to purchase or sell, possibly preventing a unit trust fund from selling
such illiquid securities at an advantageous time or price. Unit trust funds with principal investment strategies that involve foreign
securities, derivatives or securities with substantial market and/or credit/default risk tend to have the greatest exposure to
liquidity risks.
Counterparty risk
Counterparty risk occurs when a financial institution that has entered into a securities trade defaults on its obligations under the
agreement. A fund may encounter unit price volatility due to this risk arising.
Stock-specific risk
The value of each individual stock that a unit trust fund invests in may decline for a number of reasons which is directly related
to the issuer, such as, the management performance, financial position and reduced demand for the issuer’s goods or services.
24
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
Derivatives/ structured products risk
The funds may from time to time use derivatives for hedging or as part of the investment strategy within the confines of the
investment limits. Derivatives are financial contracts whose value depend on, or are derived from, the value of an underlying
asset, reference rate or index. Such assets may include shares, interest rates, currency exchange rates and stock indices.
Some of the risks associated with derivatives are market risk, management risk, credit risk, liquidity risk and counterparty risk.
Reclassification of Shariah status risk
The risk that the currently held Shariah-compliant equities in the portfolio of Shariah-compliant Funds may be reclassified to be
Shariah non-compliant upon review of the securities by the Shariah Advisory Council of the SC performed twice yearly. If this
occurs, we will take the necessary steps to dispose of such securities.
4.3 RISK MANAGEMENT STRATEGIES
4.3.1 Kenanga Cash Plus Fund and Kenanga i-Enhanced Cash Fund
The investment in Kenanga Cash Plus Fund and Kenanga i-Enhanced Cash Fund is not capital guaranteed. However, the risks
of capital loss are considered low as the Fund would invest in low risk assets. In addition, the short weighted average maturity
of less than 365 days (for Kenanga Cash Plus Fund) or 732 days (for Kenanga i-Enhanced Cash Fund) would minimize the
risks from interest rate movements, hence further reducing the risks of capital loss.
We also manage the portfolio risks, by, amongst others:
•
•
•
•
•
adhering to the Fund’s investment objective and investment restrictions and limits;
carrying out robust credit analysis for investment decision making;
daily monitoring of market liquidity;
effective asset allocation;
constant reporting of investment matters to the investment committee and senior management.
We may, in compliance with the applicable investment limits and restrictions imposed, temporarily adopt a more defensive
attitude by holding more cash in the portfolio when we believe that the market or the economy is experiencing excessive
volatility, a persistent general decline or other negative conditions.
4.3.2 Kenanga Income Plus Fund and Kenanga Bon Islam Fund
The Fund employs strategies such as overall portfolio duration and yield curve positioning to deal with market and reinvestment
risks. Bond/sukuk strategies employed can translate into a laddered, barbell or bullet portfolios. For investments in credits, a
bottom-up approach in selecting corporate issuers in the portfolio and the selection of best-priced securities within a given credit
rating can improve the performance of a credit portfolio. Should the rating of the corporate issuers fall below the minimum rating
of “investment grade” i.e. rated at least BBB- by RAM or equivalent rating by MARC or other rating agencies, we will try to
dispose of the securities to the market, subject to pricing and liquidity of the securities. We will follow-up closely the
development of the credit issue.
The Fund’s internal controls include asset allocation strategies to limit exposures in a single asset class. The Fund also
imposes single-issuer limits to restrict over-investments in a single or group of companies i.e. issuer risks. Portfolio turnover and
dealing limits control churning and over-trading with securities trade-counter parties. Functionally, investment management is
separated from the trade processing and compliance units so that investments limits can be independently monitored and
reported.
We may, in compliance with the applicable investment limits and restrictions imposed, temporarily adopt a more defensive
attitude by holding more cash in the portfolio when we believe that the market or the economy are experiencing excessive
volatility, a persistent general decline or other negative conditions.
4.3.3 Kenanga Managed Growth Fund, Kenanga Diversified Fund and Kenanga Shariah Balanced Fund
We adopt an active investment management strategy which also incorporates risk management strategy. Investment filters and
fundamental research helps mitigate market, stock-specific, credit and interest rate risks. Active management of portfolio allows
tactical positioning of the Fund which helps reduce market and other portfolio risks. Various bond/sukuk strategies may be
employed to maximize return and manage risks.
We may, in compliance with the applicable investment limits and restrictions imposed, temporarily adopt a more defensive
attitude by holding more cash in the portfolio when we believe that the market or the economy is experiencing excessive
volatility, a persistent general decline or other negative conditions.
4.3.4 Kenanga Blue Chip Fund, Kenanga Growth Opportunities Fund, Kenanga Shariah Growth Opportunities Fund
and Kenanga Ekuiti Islam Fund
We adopt an active investment management process that is not a ‘frequent-trading’ strategy. An active investment process is a
dynamic mix of market and corporate earnings and market and stock valuation. Any one or a combination of the factors may
rapidly change: stocks may be bought or sold as and when the factors warrant it. At the same time, the active investment
management strategy also helps in mitigating risks associated with equity investing including market, stock-specific and liquidity
risks.
25
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
Risks associated with investing in this Fund i.e. market, stock-specific and liquidity risks are controlled to some extent by
making adjustments to its asset allocation and/or sector and stock weightings, based on the investment outlook prevailing at
that time. The Fund also imposes single-issuer limits to restrict over-investment in a single or group of companies i.e. stockspecific risk and to ensure diversification.
We may, in compliance with the applicable investment limits and restrictions imposed, temporarily adopt a more defensive
attitude by holding more cash in the portfolio when we believe that the market or the economy is experiencing excessive
volatility, a persistent general decline or other negative conditions.
26
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
5. DETAILS OF KENANGA OneAnswerTM, KENANGA CASH PLUS FUND AND KENANGA i-ENHANCED CASH FUND
5.1 WHAT IS KENANGA ONEANSWERTM?
Kenanga OneAnswerTM provides you with a choice of 9 unit trust funds that are designed to allow you to customize your
investment portfolio in a simple and convenient investment package. Kenanga OneAnswerTM allows you to customize your
investment solution that is simple to understand, easy to use and changes as your needs change – all within the one package.
Kenanga OneAnswerTM puts you in control by offering you wide investment choice, greater convenience, and more flexibility.
5.1.1 Why Kenanga OneAnswerTM?
Kenanga OneAnswerTM addresses your needs for choice of funds within a multi product platform that will allow free and
unlimited switching between the various funds*. This will empower you with wider choice, greater flexibility and convenience to
manage your evolving investment needs with a one-time entry fee and thereafter free unlimited switching within the various
funds under Kenanga OneAnswerTM and/or other local and foreign funds managed by us*.
In addition, Kenanga OneAnswerTM allows you the choice to customize your portfolios, based on your conservative, balanced
and aggressive risk profiles, using suggested model portfolios or choosing your own preferred combination.
* Please refer to item 9.6 for switching policy.
5.1.2 Choosing the investments that suit you
Kenanga OneAnswerTM may be tailored to your needs. You may choose from 9 different investments funds. Each Fund has
different investment philosophies and performance objectives, ranging from conservative to a strong growth-oriented approach.
Kenanga OneAnswerTM allows you to select, in any proportion, any number of those investments to implement your investment
strategy.
5.1.3 Managing risk and return
Before investing, you need to determine what level of risk is appropriate for you. Your savings are important and should be
managed carefully to meet your financial goals. There is generally a relationship between the risk associated with different
investments and their potential returns.
Investments earning higher returns usually carry higher risk and their value may rise or fall significantly and returns may be
more volatile. More stable investments, such as cash and bonds/sukuk, generally earn relatively lower returns, but their value
and returns are less likely to fluctuate significantly. Each type of investment generally has a different set of risk and return
features.
The risk/ return relationship is a trade-off as illustrated in Figure 1. The price of higher returns is the likelihood that your returns
will fluctuate over time and the greater possibility that you could lose money. The cost of lower risk might be that your returns do
not provide the money you need to meet your long-term financial goals.
An important part of the relationship with your adviser is working out your own risk/return profile, to determine how much risk is
appropriate for you in the context of your investment objectives and circumstances.
Establishing your profile is an important step in selecting the investments that suit your needs. Accordingly, we have developed
and suggested model portfolios that may provide you with a total portfolio solution that is suitable to your particular profile and
circumstances.
High
Equity funds
Kenanga Shariah Growth Opportunities Fund^
Relative return
Kenanga Growth Opportunities Fund
Kenanga Ekuiti Islam Fund^
Kenanga Blue Chip Fund
Mixed Asset fund
Kenanga Diversified Fund
Balanced funds
Kenanga Shariah Balanced Fund^
Kenanga Managed Growth Fund
Fixed Income funds
Kenanga Income Plus Fund
Kenanga Bon Islam Fund^
Low
Low
Relative Risk
High
Figure 1 – Expected relative risk and return of the Kenanga OneAnswerTM
^ Shariah-compliant funds
27
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
5.2 DETAILS OF KENANGA ONEANSWERTM
5.2.1 Kenanga Blue Chip Fund
Investment objective
Investment and risk
management strategies
The Fund aims to achieve long-term* capital growth through investments in companies that
have relatively larger market capitalization^.
Any material changes to the investment objective of the Fund would require Unitholders’
approval.
The Fund will construct a diversified investment portfolio that consists of fundamentally sound
companies that have large market capitalization^ and are dividends paying. The Fund may
invest up to 98% of its NAV in such companies. These companies are generally referred to as
‘blue chip’ companies.
The strategy begins with a thorough macroeconomic analysis and determining the investable
universe of stocks for the Fund. The research is based on internal fundamental research,
company contacts and visits, external research, databases and quantitative support. Finally,
portfolio is constructed using bottom-up analysis based on the level of conviction formed for
individual stocks.
The companies are initially evaluated based on a combination of growth and value parameters.
The more favourable stocks are subject to thorough fundamental analysis including their
dividend payout, yields and sustainability. The best companies are then chosen from each
sector. The final portfolio is determined taking into consideration the relative attractiveness of
each sector.
We employ ‘Price-for-Growth’ as a global standard to equity investments. ‘Price for Growth’ is
based on the belief that earnings growth drives stock returns. The strategy focuses on the
analysis of the earnings and cash flow potential of individual companies using a bottom-up
fundamental approach. The objective is to find under-priced earnings growth in the market by
making an assessment of what a reasonable price is for the earnings growth that companies
offer. The Fund believes that there is a trade off between the desire for good earnings growth
and the amount paid for that growth.
In addition to the ‘Price-for-Growth’ strategy, the Fund also evaluates the dividend policy,
payment and dividend yield relative to its price. Overall the investments are in companies that
offer good medium-term earnings growth, sustainable dividend yield and are inexpensively
priced.
Asset allocation
Performance benchmark
Principal risk
Investors’ profile
Minimum suggested
investment horizon
Income distribution
Distribution reinvestment
option
EPF Investment
Financial year end
We adopt an active investment management process that is not a ‘frequent-trading’ strategy. At
the same time, the active investment management strategy including diversification and in
depth fundamental research, also helps in mitigating risks associated with equity investing
including market, stock-specific and liquidity risks.
Ranges
Equities
50% - 98% of the Fund’s NAV
Fixed income securities/cash
2% - 50% of the Fund’s NAV
FBM 100 obtainable from www.bursamalaysia.com
Market risk, stock-specific risk and liquidity risk.
• Are seeking high capital appreciation;
• Have moderate to high-risk tolerance and can withstand significant short-term¹ volatilities;
• Have long-term* investment horizon.
5 years.
Income (if any) will be distributed annually on a best effort basis.
Available.
Yes.
30 September.
Note:
* Long-term refers to a period of 7 years and above.
^ Relatively larger market capitalization refers to companies with market capitalization of more than RM 4 billion at the point of
purchase.
¹ Short-term refers to a period of less than 3 years.
² The Fund will invest in companies with market capitalization of more than RM4 billion at the point of purchase.
28
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
5.2.2 Kenanga Growth Opportunities Fund
Investment objective
Investment and risk
management strategies
The Fund aims to achieve consistent capital appreciation over the long-term* by primarily
investing in relatively smaller capitalized companies^ with good growth prospects².
Any material changes to the investment objective of the Fund would require Unitholders’
approval.
The Fund is an equity growth fund that is actively managed based on both quantitative and
qualitative disciplines. Its strategy is to invest in companies³ that are likely to yield higher
earnings growth than the market average.
The Fund adopts a theme-based approach, defined as a growth trend driven by innovation or
imbalances and changes in the economy. These themes play out over the medium to longer
term and cannot be corrected or fulfilled in the short term.
The Fund’s unique theme-based approach could be summarized as a 4-step process:
•
Identify – Identifying themes by trends;
•
Specify – Specifying sectors making up the trend;
•
Quantify – Establishing potential size of market and growth;
•
Classify – Selecting the stocks related and grouping them.
Thus the theme-based approach is able to capture the above average growth prospect which is
driven and sustained by the identified themes.
The investment process for the Fund is designed to identify undervalued quality growth stocks
which are just about to embark on an aggressive growth phase.
Investment process is characterized by a well-designed balance of top down and bottom up
decision making taking the specifics of the different sectors into account. Stocks are evaluated
in a disciplined manner carefully balancing business outlook, valuations, financial performance
and management quality. The resulting portfolio holdings typically have above average growth
potential and solid financials.
Asset allocation
Performance benchmark
Principal risk
Investors’ profile
Minimum suggested
investment horizon
Income distribution
Distribution reinvestment
option
EPF Investment
Financial year end
Risks associated with investment in this Fund are mitigated by diversification among the sectors
and securities held. The active management style and fundamental in depth research
incorporated into the Fund’s investment process also help to mitigate investment risks i.e.
market, stock-specific and liquidity risks.
Ranges
Equities
70% - 98% of the Fund’s NAV
Fixed income securities/cash
2% - 30% of the Fund’s NAV
FBME obtainable from www.bursamalaysia.com
Market risk, stock-specific risk and liquidity risks.
• Are seeking high capital appreciation;
• Have moderate to high-risk tolerance and can withstand significant short-term¹ volatilities;
• Have long-term* investment horizon.
5 years.
Income (if any) as secondary objective, is paid annually.
Available.
Yes.
31 August.
Note:
* Long-term refers to a period of 7 years and above.
^ Relatively smaller capitalized companies refers to companies with market capitalization of less than RM4 billion at the point of
purchase.
¹ Short-term refers to a period of less than 3 years.
² Good growth prospects refers to companies with higher earnings growth than the market average.
³ The Fund will invest in companies with market capitalization of less than RM4 billion at the point of purchase.
29
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
5.2.3 Kenanga Shariah Growth Opportunities Fund
Investment objective
Investment and risk
management strategies
The Fund aims to achieve consistent capital appreciation over the long term* by primarily
investing in Shariah-compliant securities with good growth prospects³.
Any material changes to the investment objective of the Fund would require Unitholders’
approval.
The Fund is an Islamic equity growth fund that is actively managed based on both quantitative
and qualitative disciplines. Its strategy is to invest in Shariah-compliant securities that are likely
to yield higher earnings growth than the market average.
The Fund adopts a theme-based approach defined as a growth trend driven by innovation or
imbalances and changes in the economy. These themes play out over the medium to longer
term and cannot be corrected or fulfilled in the short term.
The Fund’s unique theme-based approach could be summarized as a 4-step process:
•
Identify – Identifying themes by trends;
•
Specify – Specifying sectors making up the trend;
•
Quantify – Establishing potential size of market and growth;
•
Classify – Selecting Shariah-compliant related stocks and grouping them.
Thus the theme-based approach is able to capture the above average growth prospect which is
driven and sustained by the identified themes.
The investment process for the Fund is designed to identify undervalued quality growth Shariahcompliant stocks which are just about to embark in aggressive growth phase. Investment
process is characterized by a well-designed balance of top down and bottom up decision
making taking the specifics of the different sectors into account. Shariah-compliant stocks are
evaluated in a disciplined manner carefully balancing business outlook, valuations, financial
performance and management quality. The resulting portfolio holdings typically have above
average growth potential and solid financials.
Asset allocation
Performance benchmark
Principal risk
Investors’ profile
Minimum suggested
investment horizon
Income distribution (if any)
Distribution reinvestment
option
EPF Investment
Financial year end
Risks associated with Shariah-compliant equity investment in this Fund are mitigated by
diversification among the sectors and Shariah-compliant securities held. The active
management style and fundamental in depth research incorporated into the Fund’s investment
process also help to mitigate investment risks i.e. market, stock-specific and liquidity risks.
Ranges
Shariah-compliant equities
70% - 98% of the Fund’s NAV
Sukuk/cash
2% - 30% of the Fund’s NAV
FBMS obtainable from www.bursamalaysia.com
Market risk, stock-specific risk, liquidity risk and reclassification of Shariah status risk.
•
Are seeking high capital appreciation from Shariah-compliant securities;
•
Have moderate to high-risk tolerance and can withstand significant short-term¹ volatilities;
•
Have medium to long-term² investment horizon.
5 years.
Income (if any) as secondary objective, is paid annually.
Available.
Yes.
30 November.
Note:
* Long-term refers to a period of 7 years and above.
¹ Short-term refers to a period of less than 3 years.
² Medium to long-term refers to a period of 5 years or longer.
³ Good growth prospects refers to companies with higher earnings growth than the market average.
30
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
5.2.4 Kenanga Ekuiti Islam Fund
Investment objective
Investment and risk
management strategies
The Fund aims to achieve long-term* capital growth through investment in Shariah-compliant
securities.
Any material changes to the investment objective of the Fund would require Unitholders’
approval.
Investments are on Shariah-compliant securities i.e. equities that offer medium-term^ earnings
growth and that are inexpensively priced². Firstly, the strategy begins with a thorough
macroeconomic analysis and determining the investable universe of stocks for the Fund.
The Fund employs the investment style known as ‘price-for-growth’ to invest in listed equities
that are Shariah-compliant. Such securities are characterized by operations that comply with
Shariah requirements and have strong financial and business track records. The Fund may
invest up to 98% of its NAV in such companies.
‘Price for growth’ is based on the belief that earnings growth drives stock returns. The strategy
focuses on the analysis of the earnings and cash flow potential of individual companies using a
bottom-up fundamental approach.
The objective is to find under-priced earnings growth in the market by making an assessment of
what a reasonable price is for the earnings growth that companies offer. The Fund believes that
there is a trade-off between the desire for good earnings growth and the amount paid for that
growth.
Two key components are analyzed: ‘earnings per share’ growth, which is a measure of a
company's growth potential; and ‘price earnings ratio’, which is a measure of relative value.
Investments are on companies that offer good medium-term earnings growth and that are
inexpensively priced.
The strategy begins with a thorough macroeconomic analysis and determining the investable
universe of Shariah-compliant stocks for the Fund. The research is based on internal
fundamental research, company contacts and visits, external research, databases and
quantitative support. Finally, the portfolio is constructed using bottom-up analysis, based on the
level of conviction formed for individual stocks.
Asset allocation
Performance benchmark
Principal risk
Investors’ profile
Minimum suggested
investment horizon
Income distribution
Distribution reinvestment
option
EPF Investment
Financial year end
We adopt an active investment management process that is not a ‘frequent-trading’ strategy. An
active investment process is a dynamic mix of market and corporate earnings and market and
stock valuation. At the same time, an active investment management process helps to mitigate
risks associated with Shariah-compliant equity investment including market, stock-specific and
liquidity risks.
Ranges
Shariah-compliant equities
50% - 98% of the Fund’s NAV
Sukuk/ cash
2% - 50% of the Fund’s NAV
FBMS obtainable from www.bursamalaysia.com
Market risk, stock-specific risk, liquidity risk and reclassification of Shariah status risk.
• Are seeking high capital growth from Shariah-compliant securities;
• Has relatively high-risk profiles and can withstand significant short-term¹ volatilities;
• Have long-term* investment horizon.
5 years.
Income (if any) will be distributed annually on a best effort basis.
Available.
No.
30 June.
Note:
* Long-term refers to a period of 7 years and above.
^ Medium-term refers to a period of between 5 -7 years.
¹ Short-term refers to a period of less than 3 years.
² Inexpensively priced refers to equities that have a lower price earnings ratio compared with the industry average.
31
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
5.2.5 Kenanga Managed Growth Fund
Investment objective
Investment and risk
management strategies
The Fund aims to achieve long-term* capital growth through diversified investments in equities
and bonds.
Any material changes to the investment objective of the Fund would require Unitholders’
approval.
The Fund invests in a mixture of equities, bonds and money market instruments. The Fund
engages active tactical allocation between asset classes with emphasis on managed growth
and selects securities based on current earnings, growth prospects and potential for capital
appreciation as well as income distribution. Tactical asset allocation between assets and
sectors is determined by analyzing the economy, which influences the business cycle, and
market factors.
For stock investments, the Fund employs the ‘price-for-growth’ approach to stock selection and
focuses primarily on large-capitalized companies that are dividends paying. Such companies
are characterized by large-scale operations, strong financial and business track records, and
are leaders in their respective fields. These companies are generally referred to as ‘blue chip’
companies.
The Fund may also invest up to 60% of its NAV in bonds. The bond investment strategy utilizes
macro-economic analysis to position the portfolio with respect to duration, convexity and yield
curve shape. Value is added through the application of credit skills and interest rates
anticipation.
The strategy is based on the belief that fundamental economic and sector analysis drives longterm outperformance and that active management of credit risk can produce consistently
superior results than those produced through passive management. Here, the Fund may take
advantage of sector rotation, issue selection and relative value positioning.
We adopt an active investment management strategy which also incorporates risk management
strategy. Investment filters and fundamental research helps mitigate market, stock-specific,
credit and interest rate risks. Active management of portfolio allows tactical positioning of the
Fund which helps reduce market and other portfolio risks. Various bond strategies may be
employed to maximize return and manage risks.
Asset allocation
Performance benchmark
Principal risks
Investors’ profile
Minimum suggested
investment horizon
Income distribution
Distribution reinvestment
option
EPF Investment
Financial year end
In adverse market conditions, the Fund will remain true-to-label and within the mandate and
asset allocation ranges.
Ranges
Equities
40% - 60% of the Fund’s NAV
Fixed income securities/cash
40% - 60% of the Fund’s NAV
A composite of FBM 100 (50%) and the All MGS Index (50%) obtainable from
www.bursamalaysia.com and www.quantshop.com.
This performance benchmark is selected to reflect the objective of the Fund that aims to achieve
long-term capital growth through diversified investments in equities and bonds.
Stock-specific risk, market risk, liquidity risk, reinvestment risk, credit/default risk, interest rate
risk and counterparty risk.
•
Are seeking a combination of both capital appreciation with income distribution;
•
Have moderate risk tolerance and can withstand short-term¹ volatility;
•
Have medium to long-term^ investment horizon.
4 years.
Income (if any) will be distributed annually on a best effort basis.
Available.
No.
31 March.
Note:
* Long-term refers to a period of 7 years and above.
^ Medium to long-term refers to a period of 5 years or longer.
¹ Short-term refers to a period of less than 3 years.
32
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
5.2.6 Kenanga Diversified Fund
Investment objective
This Fund aims to provide investors capital appreciation with stability of income over a medium
to long-term* investment horizon from a diversified investment portfolio.
Any material changes to the investment objective of the Fund would require Unitholders’
approval.
Investment and risk
management strategies
The Fund’s asset allocation includes a mixture of equity securities, fixed income securities and
money market instruments. The maximum equity weighting is limited to 70% of the Fund’s NAV.
In times of actual or anticipated adverse market conditions, the equity exposure may be
reduced. The Fund engages active tactical asset allocation between the asset classes which is
determined by analyzing the economy, which influences the business cycle, and market factors.
For equities investment, the Fund adopts an actively managed strategy and a disciplined
investment process whereby thorough research is undertaken and stocks are analyzed utilizing
a fundamental top down and bottom up investment process. Stocks are evaluated in a
disciplined manner carefully balancing business outlook, valuations, financial performance and
management quality. The Fund employs the “price for growth” approach for the equity
investments. Typically, high portfolio turnover rates are generally not common to our investment
strategy.
For investment in fixed income securities, the investment strategy is diversifying investment
holdings and spreading the maturity of bonds to ensure minimization of risks. The investment
process begins with thorough macro economic analysis. The analysis is used to position the
portfolio with respect to duration, convexity and yield curve shape. The Fund adds value through
the application of credit skills and interest rates anticipation, shifting duration, sector and credit
exposures in the context of the expected economic and financial environment.
On a bottom-up perspective, the Fund focuses on seeking adequate reward for any credit risks
assumed. Here, the Fund may take advantage of sector rotation, issue selection and relative
value positioning. The Fund emphasizes medium to long-term investment views and involves
the application of relative value analysis to individual credits and industry sectors.
Asset allocation
Performance benchmark
Principal risk
Investors’ profile
Minimum suggested
investment horizon
Income distribution
Distribution reinvestment
option
EPF Investment
Financial year end
Risks associated with investment in this Fund are mitigated by diversification among asset
classes and securities held. Equities investment risks i.e. market, stock-specific and liquidity
risks are managed via in-depth research while active management of the fixed income
securities helps to mitigate credit, interest rates, counterparty and market risks.
Ranges
Equities
20% - 70% of the Fund’s NAV
Fixed income securities/ cash
30% - 80% of the Fund’s NAV
A composite of FBM 100 (60%) and All MGS Index (40%) obtainable from
www.bursamalaysia.com and www.quantshop.com.
This performance benchmark is selected to reflect the strategy of the Fund that aims to achieve
capital appreciation through investments in equity securities, fixed income securities and money
market instruments.
Market risk, interest rate risk, credit/default risk, liquidity risk, reinvestment risk and counterparty
risk.
• Are seeking a combination of capital appreciation with a modest level of income;
• Have moderate risk tolerance and can withstand short-term¹ volatility;
• Have medium to long-term* investment horizon.
4 years.
Income (if any) will be distributed annually on a best effort basis.
Available.
Yes.
30 November.
Note:
* Medium to long-term refers to a period of 5 years or longer.
¹ Short-term refers to a period of less than 3 years.
33
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
5.2.7 Kenanga Shariah Balanced Fund
Investment objective
Investment and risk
management strategies
The Fund aims to achieve long-term* capital growth through diversified investments in equities,
fixed income and money market instruments which are Shariah-compliant.
Any material changes to the investment objective of the Fund would require Unitholders’
approval.
The Fund aims to invest in a balanced mix between Shariah-compliant equities, sukuk and
Islamic money market instruments. The Fund’s Shariah- compliant equity exposure ranges from
40% to 60% of the Fund’s NAV, with the remaining consisting of sukuk and Islamic money
market instruments.
The tactical asset allocation strategy between the different asset classes are reviewed on a
monthly basis and is determined by analyzing economic factors, which influence the business
cycle, as well as market factors including market psychology and valuations.
For Shariah-compliant equity investments, the Fund employs the ‘price-for-growth’ approach.
We adopt an actively managed strategy and a disciplined investment process whereby thorough
research is undertaken and Shariah-compliant stocks are analyzed utilizing a fundamental top
down and bottom up investment process. Shariah-compliant stocks are evaluated in a
disciplined manner carefully balancing business outlook valuations, financial performance and
management quality.
For sukuk investments, the Fund’s strategy is based on the belief that fundamental economic
and sector analysis drives long-term outperformance, and that active management of credit risk
can produce consistently superior results than those produced through passive management.
The sukuk investment process begins with thorough macro economic analysis. The analysis is
used to position the portfolio with respect to duration, convexity and yield curve shape. The
Fund adds value through the application of credit skills and interest rates anticipation, shifting
duration, sector and credit exposures in the context of the expected economic and financial
environment. On a bottom-up perspective, the Fund focuses on seeking adequate reward for
any credit risks assumed. Here, the Fund may take advantage of sector rotation, issue selection
and relative value positioning.
Asset allocation
Performance benchmark
Principal risks
Investors’ profile
Minimum suggested
investment horizon
Income distribution
Distribution reinvestment
option
EPF Investment
Financial year end
We adopt an active management style to produce a diversified portfolio which aims to achieve
steady capital growth. The volatility of the portfolio is expected to be lower than that of an equity
portfolio. Investment filters and fundamental research helps mitigate market, stock-specific,
credit and interest rate risks.
Ranges
Shariah-compliant equities
40% - 60% of the Fund’s NAV
Sukuk/Islamic money market instruments
40% - 60% of the Fund’s NAV
A composite of FBMS (50%) and the All Malaysian Government Investment Issue (50%)
obtainable from www.bursamalaysia.com and www.quantshop.com.
This performance benchmark is selected to reflect the objective of the Fund that aims to achieve
long-term capital growth through diversified investments in equities, fixed income and money
market instruments which are Shariah-compliant.
Market risk, interest rate risk, credit/default risk, reinvestment risk, counterparty risk and
reclassification of Shariah status risk.
• Are seeking Shariah-compliant returns from a fund which has potentially lower volatility
compared to an equity fund;
• Have medium to long-term^ investment horizon.
4 years.
Income (if any) as secondary objective, is paid annually.
Available.
No.
30 September.
Note:
* Long-term refers to a period of 7 years and above.
^ Medium to long-term refers to a period of 5 years or longer.
34
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
5.2.8 Kenanga Income Plus Fund
Investment objective
Investment and risk
management strategies
The Fund aims to provide investors with a regular income* stream through investments in bonds
and money market instruments.
Any material changes to the investment objective of the Fund would require Unitholders’
approval.
The Fund’s strategy is based on the belief that fundamental economic and sector analysis
drives long-term outperformance, and that active management of credit risk can produce
consistently superior results than those produced through passive management.
The investment process begins with thorough macro economic analysis. The analysis is used to
position the portfolio with respect to duration, convexity and yield curve shape.
The Fund adds value through the application of credit skills and interest rates anticipation,
shifting duration, sector and credit exposures in the context of the expected economic and
financial environment.
On a bottom-up perspective, the Fund focuses on seeking adequate reward for any credit risks
assumed. Here, the Fund may take advantage of sector rotation, issue selection and relative
value positioning.
The Fund emphasizes medium to long-term investment views and involves the application of
relative value analysis to individual credits and industry sectors.
The Fund invests in securities that have a minimum rating of “investment grade” i.e. rated at
least BBB- by RAM or equivalent rating by MARC or other rating agencies.
In responding to adverse market conditions, economic, political or any other conditions, the
portfolio manager will take positions and invest in assets that are consistent with the Fund’s
objective.
The Fund employs strategies such as overall portfolio duration and yield curve positioning to
deal with market and reinvestment risks. Bond strategies employed can translate into a
laddered, barbell or bullet portfolios. For investments in credits, a top-down allocation of
corporate issuers in the portfolio and the selection of best-priced securities within a given credit
rating can improve the performance of a credit portfolio.
The Fund’s internal controls include asset allocation strategies to limit exposures in a single
asset class. The Fund also imposes single-issuer limits to restrict over-investments in a single
or group of companies i.e. issuer risks. Portfolio turnover and dealing limits control churning and
over-trading with securities trade-counter parties. Functionally, investment management is
separated from the trade processing and compliance units so that investments limits can be
independently monitored and reported.
Asset allocation
Performance benchmark
Principal risks
Investors’ profile
Minimum suggested
investment horizon
Income distribution
Distribution reinvestment
option
EPF Investment
Financial year end
In adverse market conditions, the Fund will remain true-to-label and within the mandate and
asset allocation ranges.
Ranges
Fixed income securities
50% - 98% of the Fund’s NAV
Cash
2% - 50% of the Fund’s NAV
All MGS Index obtainable from www.quantshop.com.
Market risk, interest rate risk, liquidity risk, reinvestment risk, credit/default risk, and
counterparty risk.
• Are seeking regular income*;
• Have low to moderate risk tolerance;
• Have short to medium-term¹ investment horizon.
3 years.
Income (if any) will be distributed twice a year on a best effort basis.
Available.
Yes.
31 March.
Note:
* Income will be reinvested into additional Units into the Fund unless Unitholders request for cheques to be sent to them.
¹ Short to medium-term refers to a period of 3 – 5 years.
35
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
5.2.9 Kenanga Bon Islam Fund
Investment objective
Investment and risk
management strategies
The Fund aims to provide investors with a regular income* stream through investments in
Islamic bonds and Islamic money market instruments.
Any material changes to the investment objective of the Fund would require Unitholders’
approval.
The Fund invests in a diversified portfolio of sukuk and Islamic money market instruments. The
Fund’s strategy is based on the belief that fundamental economic and sector analysis drives
long-term outperformance, and that active management of credit risk can produce consistently
superior results than those produced through passive management.
Our investment strategy begins with a thorough macro economic analysis. The analysis is used
to position the portfolio with respect to duration, convexity and yield curve shape. The Fund
adds value through the application of credit skills and interest rates anticipation, shifting
duration, sector and credit exposures in the context of the expected economic and financial
environment.
On a bottom-up perspective, the Fund focuses on seeking adequate reward for any credit risks
assumed. Here, the Fund may take advantage of sector rotation, issue selection and relative
value positioning.
The Fund emphasizes medium to long-term investment views and involves the application of
relative value analysis to individual credits and industry sectors.
Fundamental and market analysis are used to identify overall portfolio, sukuk market sectors,
yield curve and credit positioning to provide high and sustainable real rates of return.
Investments in securities of this asset class are not restricted in terms of specific sector, type or
duration. Various sukuk strategies may be employed to maximize return and manage risks.
The Fund invests in sukuk that have a minimum rating of “investment grade” i.e. rated at least
BBB- by RAM or equivalent rating by MARC or other rating agencies.
In responding to adverse market conditions, economic, political or any other conditions, the
portfolio manager will take positions and invest in assets that are consistent with the Fund’s
objective. The Fund employs strategies such as overall portfolio duration and yield curve
positioning to deal with market and reinvestment risks. Sukuk strategies employed can translate
into a laddered, barbell or bullet portfolios. For investments in credits, a top-down allocation of
corporate issuers in the portfolio and the selection of best-priced sukuk within a given credit
rating can improve the performance of a credit portfolio and reduce credit risk in the portfolio.
Asset allocation
Performance benchmark
Principal risk
Investors’ profile
Minimum suggested
investment horizon
Income distribution
Distribution reinvestment
option
EPF Investment
Financial year end
The Fund’s internal controls include asset allocation strategies to limit exposures in a single
asset class. The Fund also imposes single-issuer limits to restrict over-investments in a single
or group of companies i.e. issuer risks. Portfolio turnover and dealing limits control churning and
over-trading with securities trade-counter parties. Functionally, investment management is
separated from the trade processing and compliance units so that investments limits can be
independently monitored and reported.
Ranges
Sukuk
50% - 98% of the Fund’s NAV
Cash
2% - 50% of the Fund’s NAV
All Malaysian Government Investment Issue obtainable from www.quantshop.com.
Interest rate risk, liquidity risk, reinvestment risk, credit/default risk and counterparty risk.
• Are seeking regular income* stream from sukuk;
• Have low to moderate risk tolerance;
• Have short to medium-term^ investment horizon.
3 years.
Income (if any) will be distributed twice a year on best effort basis.
Available.
No.
30 June.
Note:
* Income will be reinvested into additional Units into the Fund unless Unitholders request for cheques to be sent to them.
^ Short to medium-term refers to a period of 3 – 5 years.
36
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
5.3 WHAT IS KENANGA CASH PLUS FUND?
Kenanga Cash Plus Fund is a short-term fixed income fund which is designed to provide a regular stream of income*, high level
of liquidity and security of capital to meet your cash flow management needs.
5.3.1 Why invest in Kenanga Cash Plus Fund?
Kenanga Cash Plus Fund gives you safety of capital as the instruments that the Fund invests in are by and large some of the
most stable and safe investments. By purchasing debt securities issued by investment-grade banks, large corporations and the
government, the Fund carries relatively low default risk while offering relatively higher returns in comparison to similar lowrisk/liquid products. Kenanga Cash Plus Fund provides you with low-cost access to short-term fixed income instruments and
medium-term bonds which generally would require huge capital outlay and would be inaccessible to the majority of investors.
The Fund seeks to provide investors with a regular income* stream with security of capital which gives you the liquidity to
access your funds to meet your cash flow needs.
5.3.2 Details of Kenanga Cash Plus Fund
Investment objective
Investment strategy and risk
management strategy
The Fund aims to provide investors a regular stream of income* through investments in short to
medium-term^ fixed income instruments with high level of liquidity¹.
Any material changes to the investment objective of the Fund would require Unitholders’
approval.
To achieve the objective of the Fund, it will invest in high quality short to medium-term fixed
income instruments with minimum credit ratings of A3 or P2 (by RAM) or equivalent rating by
other recognized rating agencies.
We adopt an active investment management process to manage credit risks, the prevailing
interest rate environment and anticipated redemptions by Unitholders.
Investment in this Fund is not the same as placing funds in a deposit with a financial institution.
There are risks involved and investors should rely on their own evaluation to assess the merits
and risks when investing in the Fund.
The investment in the Fund is not capital guaranteed. However, the risks of capital loss are
considered low as the Fund would invest in low risk assets as stated under investment strategy
above. In addition, the short weighted average maturity of less than 365 days would also
minimize the risks from interest rate movements, hence further reducing the risks of capital loss.
Asset allocation
Performance benchmark
Principal risk
Investors’ profile
Minimum suggested
investment horizon
Income distribution
Period of payment of
redemption proceeds
Distribution reinvestment
option
EPF Investment
Financial year end
Furthermore we also manage the portfolio risks amongst others, by:• Adhering to the Fund’s investment objective and investment restrictions and limits;
• Carrying out robust credit analysis for investment decision making;
• Daily monitoring of market liquidity;
• Effective asset allocation;
• Constant reporting of investment matters to the investment committee and senior
management.
Ranges
Bonds
0 – 50% of the Fund’s NAV
Cash/ money market instruments
50 – 100% of the Fund’s NAV
Maybank 1-month fixed deposit rate obtainable from www.maybank2u.com.
Market risk, liquidity risk, credit/default risk and interest rate risk.
• Desire a steady stream of income*;
• Have short to medium-term^ investment horizon;
• Have low tolerance of investment risks;
• Want a highly liquid investment portfolio;
• Want a low risk fund as part of the asset allocation strategy.
6 – 24 months.
Income (if any) will be distributed monthly on a best effort basis.
Next Business day after the redemption application is received by us at or before 4.00 p.m. on a
Business day.
Available.
Yes.
31 October.
Note:
* Income will be reinvested into additional Units into the Fund unless Unitholders request for cheques to be sent to them.
^ Short to medium-term refers to a period of 3 – 5 years.
¹ High level of liquidity refers to fixed income instruments that are very liquid and can be sold off easily.
37
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
5.4 WHAT IS KENANGA i-ENHANCED CASH FUND?
Kenanga i-Enhanced Cash Fund is a short-term sukuk fund designed to provide investors capital preservation², regular stream
of income* and high level of liquidity^ to meet their cash flow commitments. The Fund will generally meet the needs of investors
who have short investment timeframe.
5.4.1 Why Invest in Kenanga i-Enhanced Cash Fund?
Kenanga i-Enhanced Cash Fund is an alternative cash management instrument that is Shariah-compliant. It provides you
monthly stream of ‘halal’ income*. It also gives you capital preservation² as the instruments that the Fund invests in are by and
large some of the most stable and safe investments. By purchasing sukuk issued by investment-grade financial institutions,
large corporations and the government, the Fund carries relatively low default risk while offering relatively higher returns in
comparison to similar lower risk/liquid products.
5.4.2 Details of Kenanga i-Enhanced Cash Fund
Investment objective
Investment strategy and risk
management strategies
The Fund aims to provide investors a regular stream of income* and high level of liquidity^ to
meet cash flow requirement while maintaining capital preservation².
All investment instruments of the Fund will be Shariah-compliant. Any material changes to the
Fund’s investment objective would require Unitholders’ approval.
To achieve the objective of the Fund, it will invest in high quality short to medium-term³ sukuk
with minimum credit ratings of A3 or P2 (by RAM) or equivalent rating by MARC.
We adopt an active investment management process to manage credit risks, the prevailing
interest rate environment and anticipated redemptions by Unitholders.
Investment in this Fund is not the same as placing funds in an Islamic deposit with a financial
institution. There are risks involved and investors should rely on their own evaluation to assess
the merits and risks when investing in the Fund.
The investment in the Fund is not capital guaranteed. However, the risks of capital loss are
considered low as the Fund would invest in low risk assets as stated under investment strategy
above. In addition, the short weighted average maturity of less than 732 days would also
minimize the risks from interest rate movements, hence further reducing the risks of capital loss.
Asset allocation
Performance benchmark
Principal risk
Investors’ profile
Minimum suggested
investment horizon
Income distribution
Period of payment of
redemption proceeds
Distribution reinvestment
option
EPF Investment
Financial year end
Furthermore we also manage the portfolio risks amongst others, by:• Adhering to the Fund’s investment objective and investment restrictions and limits;
• Carrying out robust credit analysis for investment decision making;
• Daily monitoring of market liquidity;
• Effective asset allocation;
• Constant reporting of investment matters to the investment committee and senior
management.
Ranges
Sukuk
0 – 60% of the Fund’s NAV
Cash/ Islamic money market instruments
40 – 100% of the Fund’s NAV
Maybank 1-month GIA rate obtainable from www.maybank2u.com.
Market risk, liquidity risk, interest rate risk and credit/default risk.
• Desire a steady stream of income*;
• Have low tolerance of investment risks;
• Want a highly liquid investment portfolio;
• Want a low risk fund as part of the asset allocation strategy;
• Want pricing stability to ensure preservation of capital²;
• Have short-term¹ investment horizon.
6 – 24 months.
Income (if any) will be distributed monthly on a best effort basis.
Next Business day after the redemption application is received by us at or before 4.00 p.m. on a
Business day.
Available.
Yes.
31 October.
Note:
* Income will be reinvested into additional Units into the Fund unless Unitholders request for cheques to be sent to them.
^ High level of liquidity refers to the liquidity of the Fund, where Unit Holders receive their redemption proceeds faster as
compared to other retail funds. As per stated in item 5.4.2, period of redemption proceeds for this Fund is the next Business
Day after the redemption application is received by the Management Company at or before 4.00 p.m. on a Business Day.
¹ Short-term refers to a period of less than 3 years.
² The Fund is not a capital protected nor a capital guaranteed fund.
³ Short to medium-term refers to a period of 3 -5 years.
38
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
5.5 AUTHORISED INVESTMENTS
Kenanga Blue Chip Fund, Kenanga Growth Opportunities Fund, Kenanga Managed Growth Fund and Kenanga
Diversified Fund
•
Transferable securities;
•
Cash, deposits and money market instruments;
•
Units/shares in collective investment schemes;
•
Derivatives for hedging purposes;
•
Unlisted securities;
•
Participation in lending of securities within the Guidelines on Securities Borrowing and Lending;
•
Any other form of investments permitted by the SC from time to time.
Kenanga Shariah Growth Opportunities Fund, Kenanga Ekuiti Islam Fund and Kenanga Shariah Balanced Fund
•
Transferable Shariah-compliant securities;
•
Cash, Islamic deposits and Islamic money market instruments;
•
Units/shares in Shariah-compliant collective investment schemes;
•
Islamic derivatives for hedging purposes;
•
Unlisted sukuk;
•
Participation in lending of Shariah-compliant securities within the Guidelines on Securities Borrowing and Lending;
•
Any other form of investments permitted by the SC from time to time.
Kenanga Income Plus Fund and Kenanga Cash Plus Fund
•
Transferable securities (i.e. debentures);
•
Cash, deposits and money market instruments;
•
Units/shares in collective investment schemes;
•
Derivatives for hedging purposes;
•
Unlisted securities;
•
Any other form of investments permitted by the SC from time to time.
Kenanga Bon Islam Fund
•
Transferable Shariah-compliant securities (i.e. Islamic debentures);
•
Cash, Islamic deposits and Islamic money market instruments;
•
Units/shares in Shariah-compliant collective investment schemes;
•
Islamic derivatives for hedging purposes;
•
Unlisted sukuk;
•
Any other form of investments permitted by the SC from time to time.
Kenanga i-Enhanced Cash Fund
•
Government investment issues, Islamic accepted bills, Bank Negara negotiable notes, Islamic negotiable instrument,
Cagamas Mudharabah bonds and any other government Islamic papers;
•
Other obligations issued or guaranteed by the Malaysian government, Bank Negara Malaysia, state governments and
government related agencies that are Shariah-compliant;
•
Unlisted Islamic securities which are traded over the counter;
•
Malaysian currency balances in hand, Shariah-based deposits with financial institutions governed by relevant legislation,
Islamic money market instruments and placements of money at calls with financial institutions;
•
Islamic corporate bonds traded in Islamic money market and either bank guaranteed or carrying at least a A3/P2 rating by
RAM and Islamic private debt securities that have an equivalent rating by RAM;
•
Units or shares in other Shariah-based collective investment schemes;
•
Islamic futures contracts and other approved Islamic derivatives instruments traded in futures market of an exchange
approved under the Act, subject to approval by the Shariah Advisory Council of the SC and/or the Shariah adviser; and
•
Any other investments approved by the Shariah Advisory Council of the SC and/or the Shariah adviser from time to time.
5.6 INVESTMENT RESTRICTIONS AND LIMITS OF THE FUNDS
5.6.1 Kenanga Income Plus Fund, Kenanga Bon Islam Fund, Kenanga Cash Plus Fund and Kenanga i-Enhanced Cash
Fund
The above Fund(s) is subject to the following investment restrictions that are imposed by the SC:
(i)
(ii)
(iii)
(iv)
(v)
(vi)
The value of a Fund’s investments in unlisted securities must not exceed 10% of the Fund’s NAV.
The value of a Fund’s investments in debentures issued by any single issuer must not exceed 20% of the Fund’s NAV.
The single issuer limit in (ii) 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/profit and principal.
The value of a Fund’s investments in debentures issued by any one group of companies must not exceed 30% of the
Fund’s NAV.
The value of a Fund’s placement in deposits with any single licensed institution must not exceed 20% of the Fund’s
NAV.
For investments in derivative:• the exposure to the underlying assets must not exceed the investment spread limits stipulated in this section;
39
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
•
(vii)
(viii)
(ix)
(x)
(xi)
(xii)
(xiii)
the value of a Fund’s over-the-counter (OTC) derivative transaction with any single counterparty must not exceed
10% of the Fund’s NAV.
The value of a Fund’s investments in structured products issued by a single counterparty must not exceed 15% of the
Fund’s NAV.
The aggregate value of a Fund’s investments in debentures, money market instruments, deposits, OTC derivatives and
structured products issued by or placed with (as the case may be) any single issuer/institution must not exceed 25% of
the Fund’s NAV. When the single issuer limit for debentures is increased to 30%, the value referred to here must not
exceed 30% of the Fund’s NAV.
The value of a Fund’s investments in units/shares of any collective investment scheme must not exceed 20% of the
Fund’s NAV.
A Fund’s investments in debentures must not exceed 20% of the debentures issued by any single issuer.
A Fund’s investments in money market instruments must not exceed 10% of the instruments issued by any single issuer.
A Fund’s investments in collective investment schemes must not exceed 25% of the units/shares in any 1 collective
investment scheme.
There will be no restrictions and limits for securities/instruments issued or guaranteed by the Malaysian Government or
Bank Negara Malaysia.
5.6.2 Kenanga Blue Chip Fund, Kenanga Growth Opportunities Fund, Kenanga Shariah Growth Opportunities Fund,
Kenanga Ekuiti Islam Fund, Kenanga Managed Growth Fund, Kenanga Diversified Fund and Kenanga Shariah
Balanced Fund
The above Fund(s) is subject to the following investment restrictions that are imposed by the SC:
(i)
(ii)
(iii)
(iv)
(v)
(vi)
(vii)
(viii)
(ix)
(x)
(xi)
(xii)
(xiii)
The value of a Fund’s investments in unlisted securities must not exceed 10% of the Fund’s NAV.
The value of a Fund’s investments in ordinary shares issued by any single issuer must not exceed 10% of the Fund’s
NAV.
The value of a Fund’s investments in transferable securities and money market instruments issued by any single issuer
must not exceed 15% of the Fund’s NAV.
The value of a Fund’s placement in deposits with any single licensed institution must not exceed 20% of the Fund’s
NAV.
For investments in derivative:
•
the exposure to the underlying assets must not exceed the investment spread limits stipulated in this section;
•
the value of a Fund’s over-the-counter (OTC) derivative transaction with any single counterparty must not exceed
10% of the Fund’s NAV.
The aggregate value of a Fund’s investments in transferable securities, money market instruments, deposits and OTC
derivatives issued by or placed with (as the case may be) any single issuer/institution must not exceed 25% of the
Fund’s NAV.
The value of a Fund’s investments in units/shares of any collective investment scheme must not exceed 20% of the
Fund’s NAV.
The value of a Fund’s investments in transferable securities and money market instruments issued by any group of
companies must not exceed 20% of the Fund’s NAV.
A Fund’s investments in transferable securities (other than debentures) must not exceed 10% of the securities issued by
any single issuer.
A Fund’s investments in debentures must not exceed 20% of the debentures issued by any single issuer.
A Fund’s investments in money market instruments must not exceed 10% of the instruments issued by any single issuer.
A Fund’s investments in collective investment schemes must not exceed 25% of the units/shares in any 1 collective
investment schemes.
There will be no restrictions and limits for securities/instruments issued or guaranteed by the Malaysian Government or
Bank Negara Malaysia.
Applicable to Kenanga Shariah Balanced Fund:
(i)
(ii)
The value of a Fund’s investments in Islamic structured products issued by a single counterparty must not exceed 15%
of the Fund’s NAV.
The aggregate value of a Fund’s investments in transferable Shariah-compliant securities, Islamic money market
instruments, Islamic deposits, OTC Islamic derivatives and Islamic structured products issued by or placed with (as the
case may be) any single issuer/institution must not exceed 25% of the Fund’s NAV.
The abovementioned limits and restrictions will be complied with at all times based on the up-to-date value of each
Fund, and the value of their investments and instruments, unless the SC grants the exemption or variation. However, a
5% allowance in excess of any limits or restrictions may be permitted where the limit or restriction is breached
through the appreciation in value of each Fund due to market movements. The Management Company should not
make any further acquisitions to which the relevant limit is breached and should within a reasonable period of not
more than 3 months from the date of such breach take all necessary steps and actions to rectify the breach. Such
limits and restrictions, however, do not apply to securities that are issued or guaranteed by the Government of
Malaysia or Bank Negara Malaysia.
5.7 VALUATION OF ASSETS
i)
Valuation of listed securities which are quoted on the stock exchange will be based on the last done market price of the
securities at the end of a particular Business day. Accordingly, listed securities which are quoted on Bursa Malaysia will be
valued as at 5.00 p.m. or such time as may be specified by the SC. In the case of newly subscribed issues e.g. rights and
warrants which have yet been traded, valuation shall be at cost.
40
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
ii)
Valuation of suspended counters which are listed on the stock exchange will be based on the last done market price of the
securities at the end of a particular Business day. Counters which have been suspended for more than 14 days shall be
valued at fair value determined in good faith by the Management Company or fund management delegate based on the
methods approved by the Trustee.
iii) Valuation of fixed income instruments (e.g. bonds and money market instruments) or sukuk denominated in RM which are
not quoted on the stock exchange is based on the price quoted by a bond pricing agent (BPA) registered with the SC. The
valuations of fixed income instruments and sukuk are done on a daily basis. Where we are in the view that the price quoted
by the BPA for a specific security differs from the “market price” by more than 20 basis points, the Management Company
or its fund management delegate (if any) may use the “market price”, provided that the Management Company or its fund
management delegate:•
records its basis for using a non-BPA price;
•
obtains necessary internal approvals to adopt the non-BPA price;
•
keeps an audit trail of all decisions and basis for adopting the “market yield”.
iv) Valuation of futures is classified as financial assets and is measured at Fair Value through Profit and Loss, “FVTPL”. They
are marked to market at the end of each trading day based on quoted prices in an active market. Any unrealized gains or
losses comprise changes in fair value of the financial instruments are reported immediately on the statement of
Comprehensive Income.
v) Valuation of derivatives/structured products is classified as financial assets and is measured at Fair Value through Profit
and Loss, “FVTPL”. The financial instruments are marked to market using valuation prices quoted by the
derivatives/structured products provider. The fair values of the financial assets are valued at least once a week. Any
unrealized gains or losses comprise changes in fair value of the financial instruments are reported immediately on the
statement of Comprehensive Income.
vi) Investments in collective investment schemes which are quoted on an approved exchange shall be valued daily based on
the same manner as listed securities as described above. Investments in unlisted open-ended unit trust funds shall be
based on the last exit price published by the trust manager. However, if the aforementioned valuation methods results in
values which the Management Company or fund management delegate considers not to be representative of a fair value
of the investments, the Management Co mpany or fund management delegate may determine the fair value in good faith
based on the methods approved by the Trustee.
vii) Investments such as bank bills and deposits placed with banks or other financial institutions shall be valued daily by
reference to the value of such investments and the shared profit/interest accrued thereon for the relevant period.
5.8 BORROWING POLICY
The Funds are permitted to borrow cash to meet redemption requests. The period of borrowing must not exceed 1 month. At
the time borrowings incurred, the aggregate borrowing amount must be less than 10% of the Fund’s NAV. Borrowing can only
be made from licensed financial institutions.
As for Shariah-compliant Funds, these Funds shall seek an Islamic financing facility to meet the above conditions.
5.9 Shariah Investment Guidelines adopted by IBFIM and Cleansing/Purification Process for the Fund
The following matters are adopted by IBFIM in determining the Shariah status of investments of the Fund.
5.9.1 Shariah Investment Guidelines
Investment in Malaysia
Equity:
Reference for investment in local securities is based on the list of Shariah-compliant securities issued by the Shariah Advisory
Council of the Securities Commission (“SACSC”) twice yearly on the last Friday of May and November which is readily available
at the Securities Commission’s website.
However, for Initial Public Offering (“IPO”) company that has yet to be determined the Shariah status by the SACSC, IBFIM
adopted the following analysis in determining its Shariah status. These criteria are adopted by IBFIM as a temporary measure
until the SACSC releases the Shariah status of that particular IPO company:
i) Quantitative Analysis
IBFIM excludes companies which main business activities involve the following:
a)
b)
c)
d)
e)
f)
g)
h)
Conventional financial services;
Gambling and gaming;
Manufacture or sale of non-halal products or related products (e.g. pork and liquor);
Manufacture or sale of tobacco-based products or related products;
Pornography;
Weaponry;
Entertainment activities that are not permitted by the Shariah; and
Other activities deemed non-permissible according to the Shariah.
41
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
IBFIM deduces the following to ensure that they do not exceed the Shariah tolerable benchmarks:
a)
b)
Interest incomes over total incomes and interest incomes over profit before tax not exceeding 5%;
Income contribution from mixed activities which involve Shariah-prohibited elements such as interest-based
businesses, conventional banks, insurance, gambling, liquor and pork over total incomes and profit before tax not
exceeding 5%;
c)
Income contribution from mixed activities which involve tobacco and tobacco-related businesses over total
incomes and profit before tax not exceeding 10%;
d)
Mixed rental income contribution from Shariah non-compliant activities over total incomes and profit before tax
not exceeding 20%; and
e)
Income contribution from mixed activities which involve businesses such as hotels and resorts, share trading and
stock broking over total incomes and profit before tax not exceeding 25%.
Should any of the above deductions fail to meet the benchmarks, IBFIM will not accord a Shariah-compliant status for
the companies.
ii) Qualitative Analysis
Company which passed the above quantitative test will be further subjected to qualitative screening before it can be
classified as Shariah-compliant. In this secondary analysis, IBFIM will look into aspects of general public perception of
the companies’ images, core businesses which are considered important and maslahah (beneficial) to the Muslim
ummah and the country, the non-permissible elements are very small and involve matters like umum balwa (common
plight and difficult to avoid), ‘uruf (custom) and rights of the non-Muslim community which are accepted by the Shariah.
Sukuk and Islamic Money Market Instruments:
The review will be based on the instruments’ lists readily available at the websites of Securities Commission of Malaysia and
Bank Negara Malaysia.
Investment in Foreign Markets
Equity:
i)
Quantitative Analysis
IBFIM excludes companies with the following business activities:
a)
b)
c)
d)
e)
f)
g)
h)
Conventional financial services;
Gambling and gaming;
Manufacture or sale of non-halal products or related products (e.g. pork and liquor);
Manufacture or sale of tobacco-based products or related products;
Pornography;
Weaponry;
Entertainment activities that are not permitted by the Shariah; and
Other activities deemed non-permissible according to the Shariah.
IBFIM deduces financial ratios of the following to ensure that they do not exceed the benchmarks*:
a)
b)
c)
d)
Interest incomes over total incomes;
Total debts including all interest-bearing loans/debentures and their respective payables such as short term/long
term debts, short term/long term debentures and all debentures payables divided by total assets;
Total sum of company’s cash divided by total assets; and
Total account receivables including trade receivables divided by total assets.
* These benchmarks may vary in accordance with the development of Islamic finance. Should any of the deductions fail
to satisfy the benchmarks, IBFIM will not accord a Shariah-compliant status for the company.
ii)
Qualitative Analysis
Company which passed the above quantitative test will be further subjected to qualitative screening before it can be
classified as Shariah-compliant. In this secondary analysis, IBFIM will look into aspects of general public perception of
the companies’ images, core businesses which are considered important and maslahah (beneficial) to the Muslim
ummah and the country, the non-permissible elements are very small and involve matters like umum balwa (common
plight and difficult to avoid), ‘uruf (custom) and rights of the non-Muslim community which are accepted by the Shariah.
Foreign sukuk:
IBFIM will review the information memoranda or prospectuses of the sukuk, its structure, utilisation of proceeds, Shariah
contracts, etc.
42
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
5.9.2 Cleansing/Purification Process
i) Cleansing Process
(a)
Wrong Investment
Refers to Shariah non-compliant investment made by the Management Company. The said investment will be
disposed/withdrawn of with immediate effect. In the event of the investment resulted in gain (through capital gain
and/or dividend), the gain is to be channelled to baitulmal or any other charitable bodies as advised by the
Shariah adviser. If the disposal of the investment resulted in losses to the Fund, the losses are to be borne by the
Management Company.
(b)
Reclassification of Shariah Status of the Fund’s Investment
A security which was reclassified as Shariah non-compliant by the Shariah Advisory Council of the Securities
Commission (“SACSC”), the Shariah adviser or the Shariah Boards of the relevant Islamic Indices. The said
security will be disposed soonest practical, once the total amount of dividends received and the market value
held equal the original investment costs.
Any capital gains arising from the disposal of the Shariah non-compliant security made at the time of the
announcement can be kept by the Fund. However, any excess capital gains derived from the disposal after the
announcement day at a market price that is higher than the closing price on the announcement day is to be
channelled to baitulmal or any charitable bodies as advised by the Shariah adviser.
ii) Purification Process
Zakat for the Fund
The Fund does not pay zakat on behalf of Muslim individuals and Islamic legal entities who are investors of the Fund.
Thus, investors are advised to pay zakat on their own.
5.10
Loan Financing
Investors are advised to seek Islamic financing to finance their purchase of units in Shariah-compliant unit trust fund.
Note: Investing in unit trust fund with borrowed money is more risky than investing with your own savings. Please refer to item
4.1 and item 4.2 for details of the risk involved.
43
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
6. FUND PERFORMANCE
6.1 KENANGA ONEANSWERTM
6.1.1 Kenanga Blue Chip Fund (formerly known as ING Blue Chip)
a. Average total returns of the Fund over the last 1, 3 and 5 financial years and since inception versus performance benchmark.
The financial year for Kenanga Blue Chip Fund ends on 30 September.
Average total return is based on NAV to NAV with distribution reinvested. Below are the annualized average returns of the Fund
as at 30 September 2012.
Kenanga Blue
Chip Fund
FBM 100
1 Year
(30/9/11 - 30/9/12)
3 Years
(30/9/09 – 30/9/12)
5 Years
(30/9/07 – 30/9/12)
Since Inception
(23/4/04 – 30/9/12)
13.32%
9.96%
3.24%
9.92%
17.31%
11.45%
5.83%
9.04%
For the 12-month period ended 30 September 2012, the Fund underperformed its performance benchmark, generating a return
of 13.32% compared with the FBM 100 return of 17.31%. The underperformance was attributed to negative sector allocation in
which the Fund had underweighted telecommunication and consumer sectors.
b. Annual total returns of the Fund for each of the last 5 financial years or since inception versus performance benchmark. The
financial year for Kenanga Blue Chip Fund is 30 September.
Annual total return is based on NAV to NAV with distribution reinvested.
Kenanga Blue
Chip Fund
FBM 100
30/9/11 –
30/9/12
30/9/10 –
30/9/11
30/9/09 –
30/9/10
30/9/08 –
30/9/09
30/9/07 –
30/9/08
13.40%
-2.56%
19.40%
10.50%
-23.02%
18.31%
-3.57%
21.61%
19.86%
-24.31%
For the 12-month period ended 30 September 2012, the Fund underperformed its performance benchmark, generating a return
of 13.40% compared with the FBM 100 return of 18.31%. The underperformance was attributed to negative sector allocation in
which the Fund had underweighted telecommunication and consumer sectors.
c. Distribution in relation to the past 3 financial year-ends
The Fund has not declared any dividend for the financial year 2010, 2011 and 2012.
d. Portfolio Turnover Ratio (PTR) & Asset Allocation
PTR
Asset allocation
2012
6.06
Money Market: 8.60%
Equity: 91.40%
2011
5.54
Money Market: 35.10%
Equity: 64.90%
2010
4.07
Money Market: 2.00%
Equity: 98.00%
For the 12-month period ended 30 September 2012, the Fund experienced a high portfolio turnover due to large creations and
redemptions, while the high market volatility also increased the trading activities for the Fund.
As at end 30 September 2012, the Fund’s equity exposure had increased by 26.50% from 64.90% to 91.40%. The Fund had
maintained a high average equity exposure (~90%) and invested mostly in large capitalization stocks due to improving
economic outlook.
Past performance of the Fund is not an indication of its future performance.
Return figures quoted from Lipper Investment Management
44
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
6.1.2 Kenanga Growth Opportunities Fund (formerly known as ING Growth Opportunities)
a. Average total returns of the Fund over the last 1, 3 and 5 financial years and since inception versus performance benchmark.
The financial year for Kenanga Growth Opportunities Fund ends on 31 August.
Average total return is based on NAV to NAV with distribution reinvested. Below are the annualized average returns of the Fund
as at 31 August 2012.
Kenanga Growth
Opportunities Fund
FBME
1 Year
(31/8/11 – 31/8/12)
3 Years
(31/8/09 – 31/8/12)
5 Years
(31/8/07 – 31/8/12)
Since Inception
(23/4/04 – 31/8/12)
12.49%
14.32%
1.72%
5.82%
13.15%
12.19%
6.59%
8.86%
For the 12-month period ended 31 August 2012, the Fund underperformed its performance benchmark, generating a return of
12.49% compared with the FBME return of 13.15%. The underperformance was attributed to negative sector allocation in which
the Fund had underweighted telecommunication and consumer sectors
b. Annual total returns of the Fund for each of the last 5 financial years or since inception versus performance benchmark. The
financial year for Kenanga Growth Opportunities Fund is 31 August.
Annual total return is based on NAV to NAV with distribution reinvested.
Kenanga Growth
Opportunities Fund
FBME
31/8/11 31/8/12
31/8/10 –
31/8/11
31/8/09 –
31/8/10
31/8/08 –
31/8/09
31/8/07 –
31/8/08
12.47%
14.20%
17.10%
-7.67%
-25.86%
13.33%
4.49%
19.67%
-7.89%
-14.86%
For the 12-month period ended 31 August 2012, the Fund underperformed its performance benchmark, generating a return of
12.47% compared with the FBME of 13.33%. The underperformance was attributed to negative sector allocation in which the
Fund had underweighted telecommunication and consumer sectors.
c. Distribution in relation to the past 3 financial year-ends
The Fund has not declared any dividend since its inception.
d. Portfolio Turnover Ratio (PTR) & Asset Allocation
PTR
Asset allocation
2012
7.69
Money Market: 2.50%
Equity: 97.50%
2011
3.56
Money Market: 7.80 %
Equity: 92.20%
2010
3.66
Money Market: 3.60 %
Equity: 91.40%
For the 12-month period ended 31 August 2012, the Fund experienced a high portfolio turnover due to large creations and
redemptions, while the high market volatility also increased the trading activities for the Fund.
As at end 31 August 2012, the equity exposure of the Fund had increased by 5.3% from 92.20% (31/08/2011) to 97.50%
(31/08/2012). This was attributable to increase in trading activities.
Past performance of the Fund is not an indication of its future performance.
Return figures quoted from Lipper Investment Management.
45
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
6.1.3 Kenanga Shariah Growth Opportunities Fund (formerly known as ING Shariah Growth Opportunities)
a. Average total returns of the Fund over the last 1, 3 and 5 financial years and since inception versus performance benchmark.
The financial year for Kenanga Shariah Growth Opportunities Fund ends on 30 November.
Average total return is based on NAV to NAV with distribution reinvested. Below are the annualized average returns of the Fund
as at 30 November 2012.
Kenanga Shariah
Growth
Opportunities
Fund
FBMS
1 Year
(30/11/11 - 30/11/12)
3 Years
(30/11/09 –30/11/12)
5 Years
(30/11/07 –3011/12)
Since Inception
(23/4/04 – 30/11/12)
7.12%
10.53%
1.25%
4.62%
11.03%
9.37%
3.06%
8.13%
For the 12-month period ended 30 November 2012, the Fund underperformed its performance benchmark, generating a return
of 7.12% compared with the FBMS return of 11.03%. The underperformance was attributed to negative sector allocation in
which the Fund had underweighted telecommunication and consumer sectors.
b. Annual total returns of the Fund for each of the last 5 financial years or since inception versus performance benchmark. The
financial year for Kenanga Shariah Growth Opportunities Fund is 30 November.
Annual total return is based on NAV to NAV with distribution reinvested.
Kenanga Shariah
Growth
Opportunities
Fund
FBMS
30/11/11 –
30/11/12
30/11/10 –
30/11/11
30/11/09 –
30/11/10
30/11/08 –
30/11/09
30/11/07 –
30/11/08
6.96%
8.12%
16.35%
26.31%
-40.82%
11.26%
0.20%
16.68%
42.76%
-41.22%
For the 12-month period ended 30 November 2012, the Fund underperformed its performance benchmark, generating a return
of 6.96% compared with the FBMS of 11.26%. The underperformance was attributed to negative sector allocation in which the
Fund had underweighted telecommunication and consumer sectors.
c. Distribution in relation to the past 3 financial year-ends
The Fund has not declared any dividend since its inception.
d. Portfolio Turnover Ratio (PTR) & Asset Allocation
PTR
Asset allocation
2012
5.79
Islamic Money Market: 3.50%
Shariah-compliant Equity:
96.50%
2011
5.69
Money Market: 8.10%
Equity: 91.90%
2010
2.32
Money Market: 4.40%
Equity: 95.60%
For the 12-month period ended 30 November 2012, the Fund experienced a high portfolio turnover due to large creations and
redemptions, while the high market volatility also increased the trading activities for the Fund.
The increase in Shariah-compliant equity exposure in 2012 was attributable to improving global economy.
The benchmark has changed from the FTSE Bursa Malaysia 100 Index to the FTSE Bursa Malaysia Emas Shariah Index
due to its conversion into a Shariah-compliant fund.
Past performance of the Fund is not an indication of its future performance.
Return figures quoted from Lipper Investment Management.
46
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
6.1.4 Kenanga Ekuiti Islam Fund (formerly known as ING Ekuiti Islam)
a. Average total returns of the Fund over the last 1, 3 and 5 financial years and since inception versus performance benchmark.
The financial year for Kenanga Ekuiti Islam Fund ends on 30 June.
Average total return is based on NAV to NAV with distribution reinvested. Below are the annualized average returns of the Fund
as at 30 June 2012.
Kenanga Ekuiti
Islam Fund
FBMS
1 Year
(30/6/11 – 30/6/12)
3 Years
(30/6/09 – 30/6/12)
5 Years
(30/6/07 – 30/6/12)
Since Inception
(23/4/04 – 30/6/12)
3.60%
11.76%
3.47%
10.05%
5.51%
13.70%
4.70%
8.58%
For the 12-month period ended 30 June 2012, the Fund underperformed its performance benchmark, generating a return of
3.60% compared with the FBMS return of 5.51%. The underperformance was attributed to negative sector allocation in which
the Fund had underweighted telecommunication and consumer sectors.
b. Annual total returns of the Fund for each of the last 5 financial years or since inception versus performance benchmark. The
financial year for Kenanga Ekuiti Islam Fund is 30 June.
Annual total return is based on NAV to NAV with distribution reinvested.
Kenanga Ekuiti
Islam Fund
FBMS
30/6/11 30/6/12
2.55%
30/6/10 –
30/6/11
23.81%
30/6/09 –
30/6/10
9.85%
30/6/08 –
30/6/09
16.32%
30/6/07 –
30/6/08
-4.38%
4.62%
20.01%
17.71%
13.29%
-8.06%
For the 12-month period ended 30 June 2012, the Fund underperformed its performance benchmark, generating a return of
2.55% compared with the FBMS of 4.62%. The underperformance was attributed to negative sector allocation in which the
Fund had underweighted telecommunication and consumer sectors.
c. Distribution in relation to the past 3 financial year-ends
The Fund has not declared any dividend for the financial year 2010, 2011 and 2012.
d. Portfolio Turnover Ratio (PTR) & Asset Allocation
PTR
Asset allocation
2012
5.30
Islamic Money Market: 5.40%
Shariah-compliant Equity:
94.60%
2011
2.44
Islamic Money Market:
3.40%
Shariah-compliant Equity:
96.60%
2010
0.41
Islamic Money Market: 17.90%
Shariah-compliant Equity:
63.60%
Shariah-compliant collective
investment scheme – Local:
18.50%
For the 12-month period ended 30 June 2012, the Fund experienced a high portfolio turnover due to large creations and
redemptions, while the high market volatility also increased the trading activities for the Fund.
There is no significant change in the exposure to Shariah-compliant equity from 2011 to 2012.
Past performance of the Fund is not an indication of its future performance.
Return figures quoted from Lipper Investment Management.
47
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
6.1.5 Kenanga Managed Growth Fund (formerly known as ING Managed Growth)
a. Average total returns of the Fund over the last 1, 3 and 5 financial years and since inception versus performance benchmark.
The financial year for Kenanga Managed Growth Fund ends on 31 March.
Average total return is based on NAV to NAV with distribution reinvested. Below are the annualized average returns of the
Funds as at 31 March 2013.
Kenanga Managed
Growth Fund
A composite of FBM 100
(50%) and All MGS Index
(50%)
1 Year
(31/3/12 - 31/3/13)
2.58%
3 Years
(31/3/10 – 31/3/13)
7.29%
5 Years
(31/3/08 – 31/3/13)
4.81%
Since Inception
(23/4/04 – 31/3/13)
7.00%
4.69%
6.86%
5.85%
6.77%
For the 12-month period ended 31 March 2013, the Fund recorded a return of 2.58% and underperformed the benchmark
return of 4.69%. The Fund’s underperformance compared to the benchmark was attributed to sector allocation.
For the fixed income portion, the performance was dragged by underweight position in government bonds, which outperformed
the corporate bonds during the period under review.
b. Annual total returns of the Fund for each of the last 5 financial years or since inception versus performance benchmark. The
financial year for Kenanga Managed Growth Fund is 31 March.
Annual total return is based on NAV to NAV with distribution reinvested.
Kenanga Managed Growth
Fund
A composite of FBM 100 (50%)
and All MGS Index (50%)
31/3/1231/3/13
2.51%
31/3/1131/3/12
3.83%
31/3/1031/3/11
16.08%
31/3/0931/3/10
17.57%
31/3/0831/3/09
-13.59%
4.70%
4.85%
11.43%
26.67%
-14.80%
For the 12-month period ended 31 March 2013, the Fund recorded a return of 2.51% and underperformed the benchmark
return of 4.70%. The Fund’s underperformance compared to the benchmark was attributed to sector allocation.
For the fixed income portion, the performance was dragged by underweight position in government bonds, which outperformed
the corporate bonds during the period under review.
c. Distribution in relation to the past 3 financial year-ends
The Fund has not declared any dividend for the financial year 2011, 2012 and 2013.
d. Portfolio Turnover Ratio (PTR) & Asset Allocation
PTR
Asset allocation
2013
3.65
Money Market: 4.10%
Bond: 42.70%
MGS: 12.80%
Equity: 40.40%
2012
4.33
Money Market: 15.20%
Bond: 28.40%
MGS: 7.90%
Equity: 48.00%
Collective investment
scheme - Local 0.50%
2011
4.01
Money Market: 3.40 %
Bond: 36.80%
Collective investment
scheme - Local 0.60%
Equity: 59.20%
The lower PTR in 2013 was mainly attributable to less trading activities.
There has not been any significant change in the asset allocation from 2012 to 2013.
Past performance of the Fund is not an indication of its future performance.
Return figures quoted from Lipper Investment Management.
48
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
6.1.6 Kenanga Diversified Fund (formerly known as ING Diversifed)
a. Average total returns of the Fund over the last 1, 3 and 5 financial years and since inception versus performance benchmark.
The financial year for Kenanga Diversified Fund ends on 30 November.
Average total return is based on NAV to NAV with distribution reinvested. Below are the annualized average returns of the Fund
as at 30 November 2012.
Kenanga Diversified Fund
A composite of FBM100
(60%) and All MGS Index
(40%)
1 Year
(30/11/11 –
30/11/12)
17.36%
3 Years
(30/11/09 30/11/12)
11.20%
5 Years
(30/11/07 30/11/12)
3.41%
Since Inception
(23/4/04 –
30/11/12)
5.86%
7.43%
7.72%
4.60%
7.14%
For the 12-month period ended 30 November 2012, the Fund outperformed its performance benchmark, generating a return of
17.36% compared with the composite of FBM100 (60%) and All MGS Index (40%) return of 7.43%. The outperformance was
attributed to positive sector allocation in which the Fund had overweighted the defensive sectors such as telecommunication,
real estate investment trust and consumer sectors.
b. Annual total returns of the Fund for each of the last 5 financial years or since inception versus performance benchmark. The
financial year for Kenanga Diversified Fund is 30 November.
Annual total return is based on NAV to NAV with distribution reinvested.
Kenanga Diversified Fund
A composite of FBM100
(60%) and All MGS Index
(40%)
30/11/11 –
30/11/12
18.44%
30/11/10 –
30/11/11
8.02%
30/11/09 –
30/11/10
8.38%
30/11/08 –
30/11/09
14.88%
30/11/07 –
30/11/08
-27.15%
7.59%
2.11%
14.01%
28.88%
-23.36
For the 12-month period ended 30 November 2012, the Fund outperformed its performance benchmark, generating a return of
18.44% compared with the composite of FBM100 (60%) and All MGS Index (40%) return of 7.59%. The outperformance was
attributed to positive sector allocation in which the Fund had overweighted the defensive sectors such as telecommunication,
real estate investment trust and consumer sectors.
c. Distribution in relation to the past 3 financial year-ends
The Fund has not declared any dividend since its inception.
d. Portfolio Turnover Ratio (PTR) & Asset Allocation
PTR
Asset allocation
2012
4.53
Money Market: -0.30%
Equity: 69.10%
Bond: 29.00%
MGS: 2.20%
2011
4.03
Money Market: 4.70%
Collective investment
scheme: 1.00%
Equity: 57.60%
Bond: 31.70%
MGS: 5.00%
2010
3.72%
Money Market: 40.50%
Bond: 2.10%
Equity: 57.40%
For the 12-month period ended 30 November 2012, the Fund experienced a high portfolio turnover due to large creations and
redemptions, while the high market volatility also increased the trading activities for the Fund.
The Fund’s equity exposure in 2012 was increased by 11.50%. The increase in equity exposure was mainly due to the
improving global economy.
Note:
* The above benchmark has been changed from a composite of FBM 100 (55%) and All MGS Index (45%) to a composite of
FBM 100 (60%) and All MGS Index (40%) with effect from 15 August 2012 to better reflect the investment objective and the
underlying investment strategies, and is therefore more suitable to measure performance against. The benchmark change will
have no impact on the portfolio or how it is managed.
Past performance of the Fund is not an indication of its future performance.
Return figures quoted from Lipper Investment Management.
49
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
6.1.7 Kenanga Shariah Balanced Fund (formerly known as ING Shariah Balanced)
a. Average total returns of the Fund over the last 1, 3 and 5 financial years and since inception versus performance benchmark.
The financial year for Kenanga Shariah Balanced Fund ends on 30 September.
Average total return is based on NAV to NAV with distribution reinvested. Below are the annualized average returns of the Fund
as at 30 September 2012.
1 Year
3 Years
5 Years
Since Inception
(30/9/11 –
(30/9/09 –
(30/9/07 –
(23/4/04 –
30/9/12)
30/9/12)
30/9/12)
30/9/12)
Kenanga Shariah Balanced
10.59%
6.56%
2.25%
5.08%
Fund
A composite of FBMS (50%)
13.25%
7.73%
4.80%
6.25%
and All Malaysian
Government Investment
Issue (50%)
For the 12-month period ended 30 September 2012, the Fund underperformed its performance benchmark, generating a return
of 10.59% compared with the composite of FBMS (50%) and All Malaysian Government Investment Issue (50%) return of
13.25%. The underperformance was attributed to negative sector allocation in which the Fund had underweighted
telecommunication and consumer sectors.
b. Annual total returns of the Fund for each of the last 5 financial years or since inception versus performance benchmark. The
financial year for Kenanga Shariah Balanced Fund is 30 September.
Annual total return is based on NAV to NAV with distribution reinvested.
Kenanga Shariah Balanced
Fund
A composite of FBMS (50%)
and All Malaysian
Government Investment
Issue (50%)
30/9/11 –
30/9/12
30/9/10 –
30/9/11
30/9/09 –
30/9/10
30/9/08 –
30/9/09
30/9/07 –
30/9/08
10.91%
2.20%
6.73%
2.44%
-10.92%
13.96%
0.17%
9.95%
14.90%
-13.33%
For the 12-month period ended 30 September 2012, the Fund underperformed its performance benchmark, generating a return
of 10.91% compared with the composite of FBMS (50%) and All Malaysian Government Investment Issue (50%) return of
13.96%. The underperformance was attributed to negative sector allocation in which the Fund had underweighted
telecommunication and consumer sectors.
c. Distribution in relation to the past 3 financial year-ends
The Fund has not declared any dividend since its inception.
d. Portfolio Turnover Ratio (PTR) & Asset Allocation
PTR
Asset allocation
2012
3.75
Islamic Money Market:
12.60%
Shariah-compliant Equity:
48.80%
Corporate Sukuk: 28.10%
Government Sukuk:
10.50%
2011
2.56
Islamic Money Market:
31.00%
Shariah-compliant Equity:
40.40%
Corporate Sukuk:
20.00%
Government Sukuk:
8.60%
2010
1.17
Islamic Money Market:
24.30%
Shariah-compliant Equity:
69.40%
Corporate Sukuk: 6.30%
For the 12-month period ended 30 September 2012, the Fund experienced a high portfolio turnover due to large creations and
redemptions, while the high market volatility also increased the trading activities for the Fund.
As at 30 September 2012, the Fund’s Shariah-compliant equity exposure was increased by 8.40% from 40.40% to 48.80%. The
increase in equity exposure was mainly due to improving macro fundamental.
Note:
*The benchmark has changed from a composite of the KLSE Composite Index (50%) and the MGS Index (50%) to a
composite of the FBMS (50%) and the All Malaysian Government Investment Issue (3-7 years) from Quantshop
Malaysian Bond Index (50%) due to its conversion into a Shariah-compliant fund.
Past performance of the Fund is not an indication of its future performance.
Return figures quoted from Lipper Investment Management.
50
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
6.1.8 Kenanga Income Plus Fund (formerly known as ING Income Plus)
a. Average total returns of the Fund over the last 1, 3, and 5 financial years and since inception versus performance
benchmark. The financial year for Kenanga Income Plus Fund ends on 31 March.
Average total return is based on NAV to NAV with distribution reinvested. Below are the annualized average returns of the Fund
as at 31 March 2013.
Kenanga Income
Plus Fund
All MGS Index
1 Year
(31/3/12 - 31/3/13)
3.54%
3 Years
(31/3/10 – 31/3/13)
5.00%
5 Years
(31/3/08 – 31/3/13)
4.08%
Since Inception
(23/4/04 – 31/3/13)
4.38%
4.50%
4.59%
4.28%
4.68%
For the 12-month period ended 31 March 2013, the Fund underperformed the benchmark All MGS Index. This was mainly due
to underweight position in government bonds, which reported gains during the period under review. The performance was also
partially dragged by selective corporate bonds which did not perform well during the period especially during first quarter of
2013.
b. Annual total returns of the Fund for each of the last 5 financial years or since inception versus performance benchmark. The
financial year for Kenanga Income Plus Fund is 31 March.
Annual total return is based on NAV to NAV with distribution reinvested.
Kenanga Income
Plus
All MGS Index
31/3/12-31/3/13
3.60%
31/3/11-31/3/12
5.31%
31/3/10-31/3/11
6.35%
31/3/09-31/3/10
3.34%
31/3/08-31/3/09
2.02%
4.59%
5.22%
4.23%
2.55%
5.05%
For the 12-month period ended 31 March 2013, the Fund underperformed the benchmark All MGS Index. This was mainly due
to underweight position in government bonds, which reported gains during the period under review. The performance was also
partially dragged by selective corporate bonds which did not perform well during the period especially during first quarter of
2013.
c. Distribution in relation to the past 3 financial year-ends
The Fund has not declared any dividend for the financial year 2011, 2012 and 2013.
d. Portfolio Turnover Ratio (PTR) & Asset Allocation
PTR
Asset allocation
2013
0.52
Money Market:6.40%
Bond: 93.60%
2012
1.10
Money Market: 5.50%
Bond: 89.40%
MGS: 4.50%
Collective investment
scheme: 0.60%
2011
1.29
Money Market: 14.80%
Bond: 84.00%
MGS: 0.50%
Collective investment
scheme: 0.70%
PTR in 2013 is lower partly due to relatively more stable fund size during the year and less rebalancing is being done to the
portfolio.
There has not been any significant change in the asset allocation from 2012 to 2013.
Past performance of the Fund is not an indication of its future performance.
Return figures quoted from Lipper Investment Management.
51
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
6.1.9 Kenanga Bon Islam Fund (formerly known as ING Bon Islam)
a. Average total returns of the Fund over the last 1, 3 and 5 financial years and since inception versus performance benchmark.
The financial year for Kenanga Bon Islam Fund ends on 30 June.
Average total return is based on NAV to NAV with distribution reinvested. Below are the annualized average returns of the Fund
as at 30 June 2012.
Kenanga Bon
Islam Fund
All Malaysian
Government
Investment Issue.
1 Year
(30/6/11 – 30/6/12)
3 Years
(30/6/09 – 30/6/12)
5 Years
(30/6/07 – 30/6/12)
Since Inception
(23/4/04 – 30/6/12)
3.04%
3.00%
2.76%
3.89%
5.20%
4.67%
4.45%
3.86%
The Fund underperformed its performance benchmark for most of the periods under review, largely due to continuous small
fund size which limited the Fund from implementing intended strategies.
b. Annual total returns of the Fund for each of the last 5 financial years or since inception versus performance benchmark. The
financial year for Kenanga Bon Islam Fund is 30 June.
Annual total return is based on NAV to NAV with distribution reinvested.
Kenanga Bon
Islam Fund
All Malaysian
Government
Investment Issue.*
30/6/11 –
30/6/12
3.08%
30/6/10 –
30/6/11
2.86%
30/6/09 –
30/6/10
3.17%
30/6/08 –
30/6/09
5.28%
30/6/07 –
30/6/08
-0.36%
5.32%
4.25%
4.74%
10.35%
-1.86%
The Fund underperformed its performance benchmark for all financial years except financial year 2008, largely due to small
fund size which continuously deterred the fund from implementing any intended strategies to enhance the Fund’s performance.
c. Distribution in relation to the past 3 financial year-ends
The Fund has not declared any dividend for the financial year 2010, 2011 and 2012.
d. Portfolio Turnover Ratio (PTR) & Asset Allocation
2012
PTR
Asset allocation
0.94
Islamic Money Market: 9.80%
Corporate Sukuk: 69.10%
MGS: 21.10%
2011
0.22
Islamic Money Market: 3.10%
Corporate Sukuk: 78.20%
MGS: 18.70%
2010
0.48
Islamic Money Market:
47.60%
Corporate Sukuk: 52.40%
PTR spiked up in financial year 2012 due to portfolio rebalancing amid fund inflows since end of year 2011. The latest asset
allocation is more reflective of our intended strategies than the previous financial years.
The higher cash holding towards end of the financial year 2012 was a result of increase in fund inflows.
Past performance of the Fund is not an indication of its future performance.
Return figures quoted from Lipper Investment Management.
52
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
6.2 Kenanga Cash Plus Fund (formerly known as ING Cash Plus)
a. Average total returns of the Fund over the last 1 and 3 financial years and since inception versus performance benchmark.
The financial year for Kenanga Cash Plus Fund ends on 31 October.
Average total return is based on NAV to NAV with distribution reinvested. Below is the annualized average return of the Fund
as at 31 October 2012.
Kenanga Cash Plus
Fund
Maybank 1-month fixed
deposit rate
1 Year
(31/10/11 – 31/10/12)
2.95%
3 Years
(31/10/09 – 31/10/12)
2.72%
Since Inception
(26/10/06 – 31/10/12)
2.83%
3.01%
2.73%
2.75%
The Fund underperformed its performance benchmark for the 1 year and 3 years periods mainly due to cash drag in
anticipation of significant withdrawals following indicative short-term investment horizon.
b. Annual total returns of the Fund for each of the last 5 financial years or since inception versus performance benchmark. The
financial year for Kenanga Cash Plus Fund is 31 October.
Annual total return is based on NAV to NAV with distribution reinvested.
31/10/11 –
31/10/12
31/10/10 –
31/10/11
31/10/09 –
31/10/10
31/10/07 –
31/10/08
2.99%
2.96%
2.31%
2.94%
3.05%
2.89%
2.35%
2.31%
Kenanga Cash Plus
Fund
Maybank 1-month fixed
deposit rate
The Fund underperformed its performance benchmark in financial year 2010 and 2012 mainly due to cash drag in anticipation
of significant withdrawals following an indicative short-term investment horizon. The Fund’s performance was also moderated in
financial year 2012 by selective banking names as the yields were traded up during the period under review due to recent and
upcoming primary banking bond issuances. Meanwhile, the outperformance in other financial years was led by investment in
short-term corporate bonds and commercial papers.
c. Distribution in relation to the past 3 financial year-ends
Financial
Year end
October 2010
October 2011
0.19
0.19
0.19
0.19
0.19
0.19
0.19
0.19
0.20
0.20
0.21
0.21
0.21
Total Net Distribution(RM)
Unit
Reinvested
10,977
548,232
10,110
410,385
10,110
439,617
10,110
469,994
6,293
429,555
6,292
455,703
6,293
355,325
12,123
466,617
12,459
439,671
11,656
389,561
11,396
407,162
11,818
375,674
11,818
369,732
559,210
420,495
449,726
480,104
435,848
461,995
361,618
478,740
452,130
401,217
418,558
387,492
381,550
0.21
0.21
0.21
0.21
0.21
0.22
0.22
0.22
0.22
0.23
0.23
11,795
11,163
11,795
9,893
7,998
13,013
64,383
53,346
35,698
37,323
30,419
411,578
340,788
399,394
356,022
311,908
353,511
397,019
374,394
305,578
436,489
445,489
Date of
Distribution
Gross/Unit
(sen)
Net/Unit
(sen)
25/11/09
28/12/09
27/01/10
24/02/10
29/03/10
28/04/10
27/05/10
29/06/10
28/07/10
26/08/10
29/09/10
27/10/10
26/11/10
0.19
0.19
0.19
0.19
0.19
0.19
0.19
0.19
0.20
0.20
0.21
0.21
0.21
29/12/10
26/01/11
24/02/11
29/03/11
27/04/11
25/05/11
29/06/11
26/07/11
25/08/11
27/09/11
27/10/11
0.21
0.21
0.21
0.21
0.21
0.22
0.22
0.22
0.22
0.23
0.23
Cash
399,783
329,625
387,599
346,129
303,910
340,498
332,636
321,048
269,880
399,166
415,070
53
Total
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
Financial
Year end
October 2012
Date of
Distribution
Gross/Unit
(sen)
Net/Unit
(sen)
23/11/11
27/12/11
30/01/12
27/02/12
26/03/12
25/04/12
28/05/12
27/06/12
26/07/12
28/08/12
26/09/12
29/10/12
0.24
0.24
0.24
0.24
0.24
0.24
0.24
0.24
0.24
0.24
0.24
0.24
0.24
0.24
0.24
0.24
0.24
0.24
0.24
0.24
0.24
0.24
0.24
0.24
Total Net Distribution(RM)
Unit
Cash
Reinvested
30,541
435,370
44,433
453,367
44,004
475,387
42,373
389,713
41,223
401,701
17,813
434,510
10,123
455,576
724
496,320
725
410,599
725
368,555
724
353,918
724
381,132
Total
465,911
497,800
519,391
432,086
442,924
452,323
465,699
497,044
411,324
369,280
354,642
381,856
d. Portfolio Turnover Ratio (PTR) & Asset Allocation
PTR
Asset allocation
2012
2.14
Money Market: 42.20%
Commercial Papers: 24.90%
Corporate Bond: 32.90%
2011
1.57
Money Market: 43.50%
Commercial Papers: 28.20%
Corporate Bond: 28.10%
Government Investment Issues:
0.20%
2010
1.74
Money Market: 35.80%
Commercial papers: 28.00%
Corporate Bond: 34.70%
Government Investment
Issues: 1.50%
PTR spiked up in financial year 2012 due to frequent rollover of short-term commercial papers and opportunity to participate in
intended corporate bonds. Meanwhile, the asset allocation for the past few years remained within the target range.
There has not been any significant change in the asset allocation from 2011 to 2012.
Past performance of the Fund is not an indication of its future performance.
Return figures quoted from Lipper Investment Management.
54
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
6.3 Kenanga i-Enhanced Cash Fund (formerly known as ING i-Enhanced Cash)
a. Average total returns of the Fund over the last 1 and 3 financial years and since inception versus performance benchmark.
The financial year for Kenanga i-Enhanced Cash Fund ends on 31 October.
Average total return is based on NAV to NAV with distribution reinvested. Below is the annualized average return of the Fund
as at 31 October 2012.
Kenanga i-Enhanced
Cash Fund
Maybank 1-month GIA
rate
1 Year
(31/10/11 – 31/10/12)
1.15%
3 Years
(31/10/09 – 31/10/12)
3.15%
Since Inception
(2/8/07 – 31/10/12)
2.83%
2.88%
2.70%
2.51%
The Fund underperformed its performance benchmark significantly for the 1-year period in financial year 2012 largely due to
fixed costs and non-placement amid small fund size. As for the 3 years and since inception periods, the Fund outperformed its
performance benchmark mainly due to administration fees reduction for the Fund following a significant redemption in April
2011 resulting in small fund size.
b. Annual total returns of the Fund for each of the last 5 financial years or since inception versus performance benchmark. The
financial period for Kenanga i-Enhanced Cash Fund is 31 October.
Annual total return is based on NAV to NAV with distribution reinvested.
Kenanga i-Enhanced
Cash Fund
Maybank 1-month GIA
rate
31/10/11 –
31/10/12
1.15%
31/10/10 –
31/10/11
6.64%
31/10/09 –
31/10/10
1.84%
31/10/08 –
31/10/09
2.12%
31/10/0731/10/08
2.09%
2.92%
2.94%
2.39%
2.21%
2.31%
The Fund underperformed its performance benchmark for most of the periods due to small fund size which deterred
implementation of any intended strategies.
c. Distribution in relation to the past 3 financial year-ends
Financial
year
October
2010
October
2011
Date of
Distribution
Gross/unit
(sen)
Net/unit
(sen)
17/12/09
18/01/10
18/02/10
18/03/10
19/04/10
19/05/10
21/06/10
21/07/10
19/08/10
20/09/10
20/10/10
25/11/10
27/12/10
21/01/11
22/02/11
22/03/11
20/04/11
18/05/11
22/06/11
20/07/11
22/08/11
21/09/11
19/10/11
0.20
0.20
0.20
0.19
0.19
0.19
0.19
0.19
0.19
0.19
0.20
0.20
0.20
0.21
0.21
0.21
0.21
0.22
0.22
0.22
0.23
0.23
0.23
0.20
0.20
0.20
0.19
0.19
0.19
0.19
0.19
0.19
0.19
0.20
0.20
0.20
0.21
0.21
0.21
0.21
0.22
0.22
0.22
0.23
0.23
0.23
Total Net Distribution (RM)
Cash
Unit
Total
Reinvested
128,512
128,512
128,757
128,757
128,138
128,138
120,335
120,335
120,617
120,617
120,836
120,836
103,207
103,207
626,965
626,965
38,922
38,922
453,756
453,756
30,515
30,515
10,000
10,000
10,019
10,019
10,540
10,540
10,562
10,562
10,583
10,583
10,494
10,494
11,267
11,267
263
263
200
200
320
320
4,206
4,206
534
534
55
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
d. Portfolio Turnover Ratio (PTR) & Asset Allocation
PTR
Asset allocation
2012
Islamic Money Market:
100.00%
2011
0.07
Islamic Money Market:
100.00%
2010
0.92
Islamic Money Market: 40.60%
Corporate Sukuk: 25.00%
Government Investment Issues:
34.40%
Due to the small fund size, all monies were invested in short-term Islamic money market placement until May 2012. Thereafter,
the fund size shrunk further, smaller than the minimum placement amount required by the banks, of which placement with
banks was not possible. Hence, nil PTR recorded.
There has not been any significant change in the asset allocation from 2011 to 2012.
Past performance of the Fund is not an indication of its future performance.
Return figures quoted from Lipper Investment Management.
56
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
7. HISTORICAL FINANCIAL HIGHLIGHTS OF THE FUNDS
7.1 FINANCIAL STATEMENTS OF THE FUNDS FOR THE 3 MOST RECENT FINANCIAL YEARS IMMEDIATELY
PRECEDING THE DATE OF THE REPLACEMENT MASTER PROSPECTUS
7.1.1 Kenanga OneAnswerTM
Kenanga Blue Chip Fund
(formerly known as ING Blue Chip)
Extract of fund’s audited statement of
comprehensive income
Total investment income
Total expenses
Net income/(loss) before tax
Less Tax
Net income/(loss) after tax
Extract of fund’s audited statement of financial
position
Total investment
Other assets
Total Assets
Total Liabilities
NET ASSETS VALUE ATTRIBUTABLE TO
UNITHOLDERS
Kenanga Growth Opportunities Fund
(formerly known as ING Growth Opportunities)
Extract of fund’s audited statement of
comprehensive income
Total investment income
Total expenses
Net income before tax
Less Tax
Net income after tax
Extract of fund’s audited statement of financial
position
Total investment
Other assets
Total Assets
Total Liabilities
NET ASSETS VALUE ATTRIBUTABLE TO
UNITHOLDERS
30/09/12
30/09/11
30/09/10
13,791,348
(1,415,605)
12,375,743
(203,600)
12,172,143
(7,213,716)
(1,404,833)
(8,618,549)
(161,923)
(8,780,472)
11,718,551
(982,387)
10,736,164
(150,900)
10,585,264
66,084,865
349,522
66,434,387
(10,363,285)
73,575,602
19,341,100
92,916,702
(7,517,734)
55,453,218
2,139,132
57,592,350
(2,353,325)
56,071,102
85,398,968
55,239,025
31/08/12
31/08/11
31/08/10
290,053
(77,824)
212,229
(3,200)
209,029
3,666,191
(349,563)
3,316,628
(69,798)
3,246,830
629,436
(134,562)
494,874
(24,300)
470,574
4,595,154
170,066
4,765,220
(155,824)
1,530,762
45,996
1,576,758
(41,598)
17,658,949
206,011
17,864,960
(523,073)
4,609,396
1,535,160
17,341,887
57
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
Kenanga Shariah Growth Opportunities Fund
(formerly known as ING Shariah Growth
Opportunities)
Extract of fund’s audited statement of
comprehensive income
Total Shariah-compliant income
Total expenses
Net income before tax
Less Tax
Net income after tax
Extract of fund’s audited statement of financial
position
Total Shariah-compliant investment
Other assets
Total Assets
Total Liabilities
NET ASSETS VALUE ATTRIBUTABLE TO
UNITHOLDERS
30/11/12
30/11/11
30/11/10
410,245
(103,592)
306,653
306,653
247,849
(93,770)
154,079
(8,553)
145,526
719,197
(102,745)
616,452
(11,100)
605,352
4,011,709
133,401
4,145,110
(284,337)
4,635,149
160,591
4,795,740
(893,931)
3,706,019
234,292
3,940,311
(234,453)
3,860,773
3,901,809
3,705,858
Note:
“IBFIM confirms that the investment portfolio of Kenanga Shariah Growth Opportunities Fund comprises securities which have
been classified as Shariah-compliant by the Shariah Advisory Council of the Securities Commission (“SACSC”). As for the
securities which are not certified by the SACSC, they have reviewed the said securities and opine that these securities are
designated as “Shariah-compliant”.
Kenanga Ekuiti Islam Fund
(formerly known as ING Ekuiti Islam)
Extract of fund’s audited statement of
comprehensive income
Total Shariah-compliant investment
Total expenses
Net income before tax
Less Tax
Net income after tax
Extract of fund’s audited statement of financial
position
Total Shariah-compliant investment
Other assets
Total Assets
Total Liabilities
NET ASSETS VALUE ATTRIBUTABLE TO
UNITHOLDERS
30/06/12
30/06/11
30/06/10
852,055
(455,187)
396,868
6,048
402,916
5,858,087
(458,941)
5,399,146
(44,500)
5,354,646
3,305,510
(620,692)
2,684,818
(18,300)
2,666,518
24,244,917
1,715,645
25,960,562
(2,084,862)
28,982,444
254,855
29,237,299
(834,512)
29,349,608
974,473
30,324,081
(180,088)
23,875,700
28,402,787
30,143,993
Note:
“IBFIM confirms that the investment portfolio of Kenanga Ekuiti Islam Fund comprises securities which have been classified as
Shariah-compliant by the Shariah Advisory Council of the Securities Commission (“SACSC”). As for the securities which are
not certified by the SACSC, they have reviewed the said securities and opine that these securities are designated as “Shariahcompliant”.
58
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
Kenanga Managed Growth Fund
(formerly known as ING Managed Growth)
Extract of fund’s audited statement of
comprehensive income
Total investment income
Total expenses
Net income before tax
Less Tax
Net income after tax
Extract of fund’s audited statement of financial
position
Total investment
Other assets
Total Assets0
Total Liabilities
NET ASSETS VALUE ATTRIBUTABLE TO
UNITHOLDERS
Kenanga Diversified Fund
(formerly known as ING Diversified)
Extract of fund’s audited statement of
comprehensive income
Total investment income
Total expenses
Net incomebefore tax
Less Tax
Net income after tax
Extract of fund’s audited statement of financial
position
Total investment
Other assets
Total Assets
Total Liabilities
NET ASSETS VALUE ATTRIBUTABLE TO
UNITHOLDERS
31/03/13
31/03/12
31/03/11
2,367,433
(1,002,106)
1,365,326
(55,531)
1,309,795
2,902,249
(1,361,835)
1,540,414
(90,200)
1,450,214
7,286,122
(761,977)
6,524,145
(64,700)
6,459,445
30,800,561.51
2,222,990.65
30,800,561.51
(1,089,614.88)
73,512,875
9,565,729
83,078,604
(5,709,151)
67,524,783
1,672,686
69,197,469
(1,605,212)
31,933,937.28
77,369,453
67,592,257
30/11/12
30/11/11
30/11/10
1,282,767
(208,481)
1,074,286
(11,800)
1,062,486
528,686
(133,198)
395,488
(12,300)
383,188
350,236
(130,224)
220,012
(13,900)
206,112
13,925,896
57,623
13,983,519
(214,094)
6,275,197
35,050
6,310,247
(152,400)
5,123,734
386,307
5,510,041
(256,958)
13,769,425
6,157,847
5,253,083
59
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
Kenanga Shariah Balanced Fund
(formerly known as ING Shariah Balanced)
Extract of fund’s audited statement of
comprehensive income
Total Shariah-compliant investment
Total expenses
Net income/(loss) before tax
Less Tax
Net income/(loss) after tax
Extract of fund’s audited statement of financial
position
Total Shariah-compliant investment
Other assets
Total Assets
Total Liabilities
NET ASSETS VALUE ATTRIBUTABLE TO
UNITHOLDERS
30/09/12
30/09/11
30/09/10
2,516,576
(370,410)
2,146,166
2,146,166
10,127
(300,674)
(290,547)
(6,600)
(297,147)
500,190
(121,732)
378,458
(7,000)
371,458
17,684,137
48,426
17,732,563
(1,276,107)
6,275,197
35,050
6,310,247
(152,400)
5,123,734
386,307
5,510,041
(256,958)
16,456,456
6,157,847
5,253,083
Note:
“IBFIM confirms that the investment portfolio of Kenanga Shariah Balanced Fund comprises securities which have been
classified as Shariah-compliant by the Shariah Advisory Council of the Securities Commission (“SACSC”). As for the securities
which are not certified by the SACSC, they have reviewed the said securities and opine that these securities are designated as
“Shariah-compliant”.
Kenanga Income Plus Fund
(formerly known as ING Income Plus)
Extract of fund’s audited statement of
comprehensive income
Total investment income
Total expenses
Net income before tax
Less Tax
Net income after tax
Extract of fund’s audited statement of financial
position
Total investment
Other assets
Total Assets
Total Liabilities
NET ASSETS VALUE ATTRIBUTABLE TO
UNITHOLDERS
31/03/13
31/03/12
31/03/11
3,596,091
(843,088)
2,753,004
2,753,004
3,520,110
(668,074)
2,852,036
2,852,036
3,984,542
(637,419)
3,347,123
3,347,123
76,826,024
239,111
77,065,135
(31,341)
64,637,480
3,261,336
67,898,816
(24,947)
61,214,778
340,307
61,555,085
(20,148)
77,033,794
67,873,869
61,534,937
60
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
Kenanga Bon Islam Fund
(formerly known as ING Bon Islam)
Extract of fund’s audited statement of
comprehensive income
Total Shariah-compliant investment
Total expenses
Net income before tax
Less Tax
Net income after tax
Extract of fund’s audited statement of financial
position
Total Shariah-compliant investment
Other assets
Total Assets
Total Liabilities
NET ASSETS VALUE ATTRIBUTABLE TO
UNITHOLDERS
30/06/12
30/06/11
30/06/10
366,340
(125,085)
241,255
241,255
155,667
(67,541)
88,126
88,126
203,271
(85,965)
117,306
117,306
9,866,996
4,813
9,871,809
(36,518)
2,736,682
1,218
2,737,900
(17,953)
4,094,960
5,970
4,100,930
(36,974)
9,835,291
2,719,947
4,063,956
Note:
“IBFIM confirms that the investment portfolio of Kenanga Bon Islam Fund comprises securities which have been classified as
Shariah-compliant by the Shariah Advisory Council of the Securities Commission (“SACSC”). As for the securities which are
not certified by the SACSC, they have reviewed the said securities and opine that these securities are designated as “Shariahcompliant”.
7.1.2 Kenanga Cash Plus Fund
(formerly known as ING Cash Plus)
Extract of fund’s audited statement of
comprehensive income
Total investment income
Total expenses
Net income before tax
Less Tax
Net income after tax
Extract of fund’s audited statement of financial
position
Total investment
Other assets
Total Assets
Total Liabilities
NET ASSETS VALUE ATTRIBUTABLE TO
UNITHOLDERS
31/10/12
31/10/11
31/10/10
6,614,071
(1,151,460)
5,462,611
5,462,611
5,999,239
(1,020,908)
4,978,331
4,978,331
6,733,922
(1,363,237)
5,370,685
5,370,685
160,328,116
74,881
160,402,997
(104,177)
193,695,973
114,367
193,810,340
(146,828)
184,025,423
79,403
184,104,826
(126,065)
160,298,820
193,663,512
183,978,761
61
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
7.1.3 Kenanga i-Enhanced Cash Fund
(formerly known as ING i-Enhanced Cash)
Extract of fund’s audited statement of
comprehensive income
Total Shariah-compliant investment
Total expenses
Net income before tax
Less Tax
Net income after tax
Extract of fund’s audited statement of financial
position
Total Shariah-compliant investment
Other assets
Total Assets
Total Liabilities
NET ASSETS VALUE ATTRIBUTABLE TO
UNITHOLDERS
31/10/12
31/10/11
31/10/10
1,692
(545)
1,147
1,147
498,269
(117,483)
380,786
380,786
2,228,929
(547,157)
1,681,772
1,681,772
48,563
48,563
(6,542)
109,222
109,222
(12,104)
7,538,852
7,995
7,546,847
(105,224)
42,021
97,118
7,441,623
Note:
“IBFIM confirms that the investment portfolio of Kenanga i-Enhanced Cash Fund comprises securities which have been
classified as Shariah-compliant by the Shariah Advisory Council of the Securities Commission (“SACSC”). As for the securities
which are not certified by the SACSC, they have reviewed the said securities and opine that these securities are designated as
“Shariah-compliant”.
7.2 TOTAL ANNUAL EXPENSES INCURRED BY THE FUNDS IN THE PRECEDING FINANCIALYEAR
Fund Name
Management
Fees
Trustee Fees
Fund
Expenses
Total
Annual
Expenses
RM
%
RM
%
RM
%
RM
%
1,285,841
1.54
58,140
0.07
71,624
0.07 1,415,605
1.70
38,606
1.55
18,066
0.73
21,152
0.85
77,824
3.13
63,237
1.55
18,004
0.44
22,351
0.55
103,592
2.54
376,665
1.55
18,125
0.07
60,399
0.25
455,187
1.88
904,168
1.55
40,856
0.07
57,082
0.10 1,002,106
1.72
169,442
1.55
18,004
0.16
21,035
0.19
208,481
1.91
296,015
1.55
17,915
0.09
56,480
0.30
370,410
1.94
70,402
1.00
17,976
0.26
36,707
0.52
125,085
1.78
745,577
1.00
52,226
0.07
45,284
0.06
843,088
1.12
929,810
0.50 130,364
0.07
91,286
0.05 1,151,460
0.62
0.41
0.06
190
0.25
0.72
Kenanga Blue Chip Fund
(formerly known as ING Blue Chip)
(FYE 30/9/12)
Kenanga OneAnswerTM
Kenanga Growth Opportunities Fund
(formerly known as ING Growth Opportunities)
(FYE 31/8/12)
Kenanga Shariah Growth Opportunities Fund
(formerly known as ING Shariah Growth
Opportunities)
(FYE 30/11/12)
Kenanga Ekuiti Islam Fund
(formerly known as ING Ekuiti Islam)
(FYE 30/6/12)
Kenanga Managed Growth Fund
(formerly known as ING Managed Growth)
(FYE 31/3/13)
Kenanga Diversified Fund
(formerly known as ING Diversified)
(FYE 30/11/12)
Kenanga Shariah Balanced Fund
(formerly known as ING Shariah Balanced)
(FYE 30/9/12)
Kenanga Bon Islam Fund
(formerly known as ING Bon Islam)
(FYE 30/6/12)
Kenanga Income Plus Fund
(formerly known as ING Income Plus)
(FYE 31/3/13)
Kenanga Cash Plus Fund
(formerly known as ING Cash Plus)
(FYE 31/10/12)
Kenanga i-Enhanced Cash Fund
(formerly known as ING i-Enhanced Cash)
(FYE 31/10/12)
FYE = Financial year end
307
48
545
62
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
7.3 MANAGEMENT EXPENSES RATIO FOR THE 3 MOST RECENT FINANCIAL YEARS OR SINCE ESTABLISHMENT
2013
Kenanga Blue Chip Fund
NA
2012
1.70%
2011
2010
1.69%
1.62%
NA
3.13%
2.02%
4.56%
NA
2.54%
2.41%
2.24%
NA
1.88%
1.71%
1.61%
1.72%
1.69%
1.67%
1.67%
NA
1.91%
2.15%
2.02%
NA
1.94%
2.24%
2.37%
1.12%
1.13%
1.10%
1.14%
NA
1.78%
2.30%
1.05%
NA
0.62%
0.59%
0.58%
NA
0.72%
0.63%
0.60%
(formerly known as ING Blue Chip)
Kenanga OneAnswerTM
Kenanga Growth Opportunities Fund
formerly known as ING Growth Opportunities)
Kenanga Shariah Growth Opportunities Fund
(formerly known as ING Shariah Growth
Opportunities)
Kenanga Ekuiti Islam Fund
(formerly known as ING Ekuiti Islam)
Kenanga Managed Growth Fund
(formerly known as ING Managed Growth)
Kenanga Diversified Fund
(formerly known as ING Diversified)
Kenanga Shariah Balanced Fund
(formerly known as ING Shariah Balanced)
Kenanga Income Plus Fund
(formerly known as ING Income Plus)
Kenanga Bon Islam Fund
(formerly known as ING Bon Islam)
Kenanga Cash Plus Fund
(formerly known as ING Cash Plus)
Kenanga i-Enhanced Cash Fund
formerly known as ING i-Enhanced Cash)
NA = Not available.
There are no significant changes for the management expenses ratio for the Funds above, except for Kenanga Growth
Opportunities Fund. The management expenses ratio of Kenanga Growth Opportunities Fund has increased in 2012 as
compared to 2011 due to the increase of fund size of Kenanga Growth Opportunities Fund.
The audited financial statements of the Fund are disclosed in the Fund’s annual report.
The Fund’s annual report is available upon request.
Past performance of the Fund is not an indication of its future performance.
63
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
8. FEES, CHARGES AND EXPENSES
8.1 HOW NET ASSET VALUE IS CALCULATED
The NAV of the Fund is determined at the end of each Business day and is the total value of all investments and cash held by
the Fund including income derived by the Fund which has not been distributed to you, less any amount owing or payable in
respect of the Fund including any provision that the Trustee or the Management Company considers necessary to be made, for
example, a provision on investment loss likely to occur in the future which cannot be fairly determined.
Please note that the example below is for illustration only:
Assuming that the calculation below is for Kenanga Income Plus Fund:
Current investment portfolio
Add: Cash (uninvested)
(Less): Liabilities
RM
30,000,000.00
10,000.00
(5,000.00)
NAV before deducting management fee and trustee fee
30,005,000.00
(Less) Management fee for the day (at 1.00% per annum of the Fund’s NAV)
(Less) Trustee fee for the day (at 0.07% per annum fo the Fund’s NAV, subject to a
minimum of RM18,000 per annum)
NAV
(822.05)
(57.54)
30,004,120.41
If the Units in circulation for Kenanga Income Plus Fund at the end of 5 May 2009 Business day was 60,000,000, the NAV per
Unit for Kenanga Income Plus Fund would be RM30,004,120.41 divided by 60,000,000 Units to result in RM0.5001 per Unit.
8.2. FEES AND CHARGES DIRECTLY INCURRED
8.2.1 Entry fee
The maximum entry fee imposed by our authorized distributors is as follows:
Kenanga OneAnswerTM
Equity and
Fixed Income and
Balanced Funds
Bond Funds
Distribution
channel
KIB advisers
IUTA
CUTA
Direct sales
Internet Online
Maximum entry fee
Maximum entry fee
6.5% of NAV per
Unit of the Fund
1.5% of NAV per
Unit of the Fund
Kenanga Cash Plus Fund
Kenanga i-Enhanced
Cash Fund
Nil
Not available
This fee is negotiable. Please refer to item 9.4 for illustration on entry price and allocation of Units.
Note:
Equity and Balanced Funds = Kenanga Blue Chip Fund, Kenanga Growth Opportunities Fund, Kenanga Shariah Growth
Opportunities Fund, Kenanga Ekuiti Islam Fund, Kenanga Managed Growth Fund, Kenanga Diversified Fund and Kenanga
Shariah Balanced Fund.
Bond Funds = Kenanga Income Plus Fund and Kenanga Bon Islam Fund.
Fixed Income Funds = Kenanga Cash Plus Fund and Kenanga i-Enhanced Cash Fund.
8.2.2 Redemption charge
There is no charge for redeeming any Units from Kenanga Cash Plus Fund and Kenanga i-Enhanced Cash Fund or any of the
Funds under Kenanga OneAnswerTM.
64
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
8.3 FEE AND CHARGES INDIRECTLY INCURRED
8.3.1 Annual management fee
The annual management fee of the Funds is as follows:
Annual Management Fee
Funds
Up to 0.75% per annum of
the Fund’s NAV.
• Kenanga Cash Plus
Fund
• Kenanga i-Enhanced
Cash Fund
1.00% per annum of the
Fund’s NAV.
• Kenanga Income Plus
Fund
• Kenanga Bon Islam
Fund
1.55% per annum of the Fund’s
NAV.
• Kenanga Blue Chip Fund
• Kenanga Growth
Opportunities Fund
• Kenanga Shariah Growth
Fund Opportunities Fund
• Kenanga Ekuiti Islam Fund
• Kenanga Managed Growth
Fund
• Kenanga Diversified Fund
• Kenanga Shariah Balanced
Fund
The annual management fee is calculated and accrued daily but payable at the end of each month to the Management
Company.
Please note that the example below is for illustration only:
Assuming that the NAV before deducting management fee and trustee fee of Kenanga Blue Chip Fund is RM10 million. The
calculation of annual management fee based on total NAV in Kenanga Blue Chip Fund is:
RM10 million x 1.55%
365 days
= RM424.66 per day
8.3.2 Annual trustee fee
Below is the annual trustee fee for the Funds. This fee is calculated and accrued daily and paid monthly to the Trustee.
Annual Trustee Fee
Funds
0.08% per annum of the Fund’s NAV.
• Kenanga i-Enhanced Cash Fund
0.07% per annum of the Fund’s NAV.
• Kenanga Blue Chip Fund
• Kenanga Growth Opportunities Fund
• Kenanga Shariah Growth Opportunities Fund
• Kenanga Ekuiti Islam Fund
• Kenanga Managed Growth Fund
• Kenanga Diversified Fund
• Kenanga Shariah Balanced Fund
• Kenanga Income Plus Fund
• Kenanga Bon Islam Fund
• Kenanga Cash Plus Fund
or a minimum of RM18,000 per annum. This fee is calculated and accrued daily and paid monthly to the Trustee.
Please note that the example below is for illustration only:
Assuming that the NAV before deducting
management fee and trustee fee of Kenanga
Income Plus is
Rate
Accrued trustee fee (on daily basis)
:
RM100,000,000
:
0.07% per annum of the Fund’s NAV.
(whichever is greater)
=
RM100,000,000 x 0.07%
365 days
=
RM191.78 per day
The annual management fee and annual trustee fee may be increased. A supplementary master prospectus disclosing
the annual management fee and annual trustee fee will be issued should the fees be increased. A notice period of 90
days will be given to the Unitholders prior to the effective date of the new fees and charges, which is in accordance
with the Guidelines as may be amended and/or updated from time to time. The annual management fee and annual
trustee fee that may be increased will be in line with the maximum fees and charges in the Deed.
65
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
8.4 OTHER CHARGES
Certain charges may be incurred when we execute a transaction for you. These may include courier and bank charges such as
commission for outstation cheques, telegraphic charges etc. These charges, if any, shall be borne by you and would be
deducted accordingly from your transaction proceeds.
For investment payment through auto debit, you will be charged RM5.00 for any unsuccessful transactions notified to the
Management Company by the bank. These charges are borne by you and will be deducted from your next auto debit deduction.
The balance will then be invested into your relevant account. For Financial Process Exchange’s Direct Debit Service, the
minimum amount is set at RM300.00 per auto debit or such amount as we may from time to time decide.
From time to time, we reserve the right to vary such condition, which will be communicated to you in writing.
All the fees and charges above may be increased. A supplementary master prospectus disclosing the new fees and
charges will be issued should the fees and charges be increased. A notice period of 30 days will be given to the
Unitholders prior to the effective date of the new fees and charges, which is in accordance with the Guidelines as may
be amended and/or updated from time to time. The fees and charges that may be increased will be in line with the
maximum fees and charges in the Deed.
8.5 THE EXPENSES OF THE FUND
The fees and expenses to be paid out of the Fund include:
•
•
•
•
•
•
•
•
•
•
•
•
•
Annual management fee;
Annual trustee fee;
Such expenses of the Trustee as permitted under the Deed and Guidelines;
Commissions/fees paid to brokers and all banks fees in effecting dealings in the investments of the Fund;
Tax and other duties charged on the Fund by the government or other authorities;
Fees and other expenses properly incurred by the auditors & reporting accountants appointed for the Fund;
Fees for valuation of any investment of the Fund by independent valuers for the benefit of the Fund;
Costs incurred for the modification of the Deed other than those for the benefit of the Management Company;
Costs incurred in printing and dispatching to Unitholders the reports, accounts of the Fund, tax vouchers and distribution
statements;
Cost incurred for any meetings of the Unitholders other than those convened by, or for the benefit of the Management
Company or Trustee;
Where the Management Company and the Trustee deem fit, fees and other expenses incurred by the investment
committee appointed for the Fund;
Costs and expenses incurred on foreign remittance in respect of purchase of foreign investment;
Commissions or fees in respect of hedging transactions for the Fund.
Expenses associated with the management and administration of the Fund, such as general overheads and costs for services
expected to be provided by the Management Company, will not be charged to the Fund.
8.6 STOCKBROKING REBATES AND SOFT COMMISSIONS
The Management Company will direct any stock broking rebates to the account of the Fund. The Management Company may
receive goods or services by way of soft commissions provided always that the goods or services are of demonstrable benefit
to the Fund and Unitholders. Examples of soft commission include but not limited to research materials, data services and
investment related publications.
There are fees and charges involved and investors are advised to consider them before investing in the Funds.
66
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
9. TRANSACTION INFORMATION
9.1 FORWARD PRICING FOR BOTH ENTRY AND REDEMPTION PRICES
Investments or redemptions are transacted based on forward pricing. When you request to purchase or redeem Units today, it
will be carried out at the NAV per Unit of the relevant Fund at the end of each Business day. This is done after we have have
received and accepted your application for Units. The valuation and pricing of Units normally take place at the end of each
Business day at the close of Bursa Malaysia.
Investment requests submitted at our Regional Branch Offices before 4.00 p.m. on any Business day will be based on NAV
determined at the end of the same Business day. Investment requests submitted after 4.00 p.m. will be based on the NAV
determined at the end of the next Business day.
Likewise, redemption requests submitted at our Regional Branch Offices before 4.00 p.m. on any Business day will be based
on NAV determined at the end of the same Business day. Redemption requests submitted after 4.00 p.m. will be based on NAV
determined at the end of the next Business day.
9.2 SINGLE PRICING POLICY
We adopt single pricing with entry fee for investments into the Fund and exit fee for redemptions from the Fund. When you
invest into or redeem from the Fund, the selling or buying of Units by us is carried out at NAV per Unit. The entry or exit fee (if
any) would be calculated separately based on your net investment or redemption amount.
Please note that the example below is for illustration purposes only.
Assuming that the entry fee for Kenanga Shariah Growth Opportunities Fund is 6.5% and the NAV per Unit is RM0.6021:
If you intend to invest into the Fund, you need to issue a cheque of RM10,650.00 to Kenanga Investors Berhad with the
breakdown between the investment amount into the Kenanga Shariah Growth Opportunities Fund account and the entry fee as
follows:
Investment into your Kenanga Shariah Growth Opportunities Fund account
Entry fee payable (6.5% of NAV per Unit of the Fund)
Amount payable to us
Number of Units allotted into your account
= RM10,000.00 / RM0.6021 = (rounded to 2 decimal points)
RM
10,000.00
650.00
10,650.00
16,608.54 Units
We shall ensure that the Fund and the Units are correctly valued and priced according to the Deed and all relevant laws. Where
there is an error in the valuation of the Fund, any incorrect pricing of Units which is deemed to be significant will involve the
reimbursement of money in the following manner:
•
•
in the event of over valuation or pricing, by us to the Funds (if there is redemption of Units) and/or to the Unitholders
who purchase Units at a higher price; or
in the event of under valuation or pricing, by us to the Funds (if there is purchasing of Units) and/or to the Unitholders
or former Unitholders who redeem at a lower price.
However, reimbursement of money shall only apply if the error is at or above the significant threshold of 0.5% of the NAV of a
Unit and the amount to be reimbursed is RM10.00 or more.
9.3 POLICY ON ROUNDING ADJUSTMENTS
The NAV per Unit for the Fund is rounded to 4 decimal points. When you invest into the Fund, the investment amount payable
to us is rounded to 2 decimal points. The Units allocated into your investment account are also rounded to 2 decimal points.
Your redemption value is also rounded 2 decimal points.
Assuming an Unitholder requests for a RM10,000 withdrawal from Kenanga Blue Chip Fund and the NAV per Unit at end of
Business day is RM0.5230 (rounded to 4 decimal places).
Calculation of number of Units redeemed
= Withdrawal value / NAV per Unit
= RM10,000.00 / RM0.5230
= 19,120.4588 Units
= 19,120.46 Units (rounded to 2 decimal points)
67
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
9.4 INVESTING INTO THE FUND
When investing in the Fund, the entry price for Units will be the NAV per Unit of the Fund as at the next valuation point after the
request for Units is received by us. The entry fee as stipulated on item 8.2.1 is charged separately.
Please note that the example below is for illustration only. It applies for investments made through any of our authorized
distribution channels:
Assuming that the entry fee for Kenanga Shariah Balanced Fund is 6.5% and the NAV per Unit is RM0. 5200:
If you intend to invest RM10,000.00 in the Fund, below is the amount incurred for your investment:
Investment into your Kenanga Shariah Balanced Fund account
Entry fee payable (6.5% of NAV per Unit of the Fund)
Amount payable to us
RM
10,000.00
650.00
10,650.00
Your account will be allotted the following Units:
RM10,000.00 / RM0.5200 = 19,230.77 Units (rounded to 2 decimal points)
The number of Units credited to an investor’s account will be determined based on the amount invested divided by the
entry price per Unit computed at the end of the Business day.
9.5 REDEEMING FROM THE FUND
You redeem from the Fund at NAV per Unit as at the next valuation point after the request for redemption is received by us.
There is no redemption fee incurred.
Please note that the example below is for illustration only:
Assuming that the NAV price per Unit of Kenanga Managed Growth Fund is RM0.5000:
If you redeem 20,000 Units of Kenanga Managed Growth Fund at the NAV per Unit of RM0.5000 per Unit, you shall receive a
redemption amount of RM10,000.00* within 10 calendar days after we have received and accepted your redemption request.
*
Proceeds of redemption are calculated as follows:
20,000 Units x RM0.5000
Exit fee (nil)
Net redemption proceed
RM
10,000.00
0.00
10,000.00
The minimum redemption must be at least 1,000 Units. If partial redemption is made, your account must have a minimum
balance of 1,000 Units**. For investment made under the EPF members’ investment scheme, redemption proceeds will be aid
to EPF to credit back into your EPF account.
** or such amounts as we may from time to time decide.
The redemption proceeds payable to an investor will be determined based on the Units redeemed multiplied by the
exit price per Unit computed at the end of the Business day.
We reserve the right to vary such conditions e.g. the minimum transaction amount from time to time, by providing at
least 30 days notification to the Unitholders in writing before the effective date of the change.
9.6 SWITCHING OF UNITS
Switching is a facility that we offer to our Unitholders. This facility is a convenient way of converting Units of one Fund to
another Fund that we manage in response to changing market conditions or changes in your investment goals.
Conditions for switching are set out below.
68
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
Switching from
Recipient Funds
= Equity, Balanced
Recipient Funds
= Bond
Equity/ Balanced
Fixed Income/ Bond
At NAV per Unit
Exit from Fixed Income/ Bond at NAV.
At NAV per Unit
Exit from Fixed Income/ Bond at NAV, if any.
Pay the differential entry fee amount to enter
into any equity or balanced funds.
Subsequent switching fee shall depend on the
specific fund terms.
Pay the differential entry fee amount to enter
into any bond funds. Subsequent switching
fee shall depend on the specific fund terms.
Switch out
Switch in
Global Funds
Kenanga Global Dividend Fund
Kenanga Global Emerging Markets Debt
Fund
Kenanga Global Opportunities Fund
Local Funds
Kenanga Blue Chip Fund
Kenanga Growth Opportunities Fund
Kenanga Shariah Growth Opportunities
Fund
Kenanga Ekuiti Islam Fund
Kenanga Managed Growth Fund
Kenanga Diversified Fund
Kenanga Shariah Balanced Fund
Kenanga Income Plus Fund
Kenanga Bon Islam Fund
Kenanga Cash Plus Fund
Kenanga i-Enhanced Cash Fund
Global Funds
Local Funds
Fixed Income Funds
T day
T + 1 day
T + 6 day
T day
T day
T + 3 day
T day
T day
T day
Note:
1. “T day” refers to the NAV per Unit of the Fund at the end of the transacted Business day.
2. All switching out is based on the NAV per Unit of the Fund at the end of the Business day (T Day).
Types of Fund
Equity
Global Funds
• Kenanga Global Dividend Fund
• Kenanga Global Opportunities Fund
Mixed Asset
Balanced
Bond
• Kenanga Global Emerging Markets Debt
Fund
Fixed Income
Local Funds
Kenanga OneAnswerTM
• Kenanga Blue Chip Fund
• Kenanga Growth Opportunities Fund
• Kenanga Shariah Growth Opportunities
Fund
• Kenanga Ekuiti Islam Fund
Kenanga OneAnswerTM
•
Kenanga Diversified Fund
Kenanga OneAnswerTM
• Kenanga Managed Growth Fund
• Kenanga Shariah Balanced Fund
Kenanga OneAnswerTM
• Kenanga Income Plus Fund
• Kenanga Bon Islam Fund
• Kenanga Cash Plus Fund
• Kenanga i-Enhanced Cash Fund
Please note that the examples below are for illustration only.
a.
Switching from Kenanga Cash Plus Fund to equity or balanced funds under Kenanga OneAnswerTM.
The assumptions for this example are as follow:
•
•
•
You want to switch 10,000 Units of Kenanga Cash Plus Fund into Kenanga Managed Growth Fund.
The NAV per Unit of Kenanga Cash Plus Fund is RM1.0102 and the entry fee is 0%.
The NAV per Unit of Kenanga Managed Growth Fund is RM0.5185 and the entry fee for Kenanga Managed Growth Fund
is 6.5%.
69
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
Switching value (10,000 Units of Kenanga Cash Plus Fund x RM1.0102)
(Less) Differential entry fee of 6.5% (6.5% - 0%)
Amount switched into Kenanga Managed Growth Fund
RM
10,102.00
(616.55)
9,485.45
Number of Units in your Kenanga Managed Growth Fund account
= RM9,485.45 / RM0.5185 per Unit =
18,294.02 Units
b. Switching from Kenanga Cash Plus Fund to bond funds under Kenanga OneAnswerTM.
The assumptions for this example are as follow:
•
•
•
You want to switch 10,000 Units of Kenanga Cash Plus Fund into Kenanga Income Plus Fund.
The NAV per Unit of Kenanga Cash Plus Fund is RM1.0102 and the entry fee is 0%.
The NAV of Kenanga Income Plus Fund is RM0.5150 per Unit and the entry fee is 1.5%.
Switching value (10,000 Units of Kenanga Cash Plus x RM1.0102)
(Less) Differential entry fee of 1.5% (1.5% - 0%)
Amount invested in your Kenanga Cash Plus Fund account
Number of Units in your Kenanga Income Plus Fund account
= RM9,952.71 / RM0.5150 per Unit =
c.
RM
10,102.00
(149.29)
9,952.71
19,325.65 Units
Switching from equity or balanced funds under Kenanga OneAnswerTM to Kenanga Cash Plus Fund.
The assumptions for this example are as follow:
•
•
•
You want to switch 10,000 Units of Kenanga Blue Chip Fund into Kenanga Cash Plus Fund.
The NAV per Unit of Kenanga Cash Plus Fund is RM1.0102 and the entry fee is 0%.
The NAV of Kenanga Blue Chip Fund is RM0.5085 per Unit and the entry fee is 6.5%.
Switching value (10,000 Units of Kenanga Blue Chip Fund x RM0.5085)
Amount switched into your Kenanga Cash Plus Fund account
Number of Units in your Kenanga Cash Plus Fund account
= RM5,085.00 / RM1.0102 per Unit =
d.
RM
5,085.00
5,085.00
5,033.66 Units
Switching from bond fund under Kenanga OneAnswerTM to Kenanga Cash Plus Fund.
The assumptions for this example are as follow:
•
•
•
You want to switch 10,000 Units of Kenanga Income Plus Fund into Kenanga Cash Plus Fund.
The NAV per Unit of Kenanga Cash Plus Fund is RM1.0102 and the entry fee is 0%.
The NAV of Kenanga Income Plus Fund is RM0.5150 per Unit and the entry fee is 1.5%.
Switching value (10,000 Units of Kenanga Income Plus Fund x RM0.5150)
Amount invested in your Kenanga Cash Plus Fund account
Number of Units in your Kenanga Cash Plus Fund account
= RM5,150.00 / RM1.0102 per Unit =
RM
5,150.00
5,150.00
5,098.00 Units
A minimum of 5,000 Units* is imposed for switching from and into Kenanga Cash Plus Fund and Kenanga i-Enhanced Cash
Fund; while a minimum of 1,000 Units* is imposed for switching from and into any for Kenanga OneAnswerTM. You must
maintain a minimum of 5,000 Units* balance in your Kenanga Cash Plus Fund and Kenanga i-Enhanced Cash Fund; and 1,000
Units* in Kenanga OneAnswerTM accounts to remain in the Fund.
*or such amounts as we may from time to time decide.
Switching from Shariah-compliant Fund to a conventional Fund is discouraged especially for Muslim Unitholders.
9.7 TRANSFER OF UNITS
There is no transfer fee when you transfer Units from your account to another Unitholder’s account. However, you are required
to retain a minimum investment balance of 1,000 Units* in your Kenanga OneAnswerTM fund account and/or 5,000 Units* in
your Kenanga Cash Plus Fund and Kenanga i-Enhanced Cash Fund account. This minimum investment balance* also applies
to the account that you want to transfer to.
*or such amounts as we may from time to time decide.
70
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
9.8 HOW TO BUY, SELL, SWITCH AND TRANSFER
Transaction
Initial
investment
Requirements
Minimum Amount*
•
Investment Application Form.
•
RM1,000 to open an Kenanga OneAnswerTM. The amount is then
allocated to your choice of funds.
•
Legible photocopy of identity
card passport or birth certificate •
RM10,000 for Kenanga Cash Plus Fund and Kenanga i-Enhanced
of each applicant.
Cash Fund account.
•
Payment.
Additional
investments
•
•
Transaction Form.
Payment.
•
•
RM100 per Fund for Kenanga OneAnswerTM
RM5,000 for Kenanga Cash Plus Fund and Kenanga i-Enhanced
Cash Fund.
Regular
investments
•
•
Transaction Form.
Direct Debit Services Form.
•
RM100 per Fund under Kenanga OneAnswerTM and RM5,000 per
account for Kenanga Cash Plus Fund and Kenanga i-Enhanced
Cash Fund through conventional direct debit via the bank.
RM300 per account for Kenanga OneAnswerTM and RM5,000 for
Kenanga Cash Plus Fund and Kenanga i-Enhanced Cash Fund
per account through auto debit via Financial Process Exchange.
•
A fee of RM5 is charged for unsuccessful auto debit deduction.
Redemptions
•
Transaction Form.
•
Regular
withdrawals
•
Transaction Form.
Kenanga OneAnswerTM
•
Minimum Units withdrawn based on last trading day’s price
equivalent to at least RM250.
•
Minimum account balance of 10,000 Units is required at all times.
Kenanga Cash Plus Fund and Kenanga i-Enhanced Cash Fund
•
Minimum 1,000 Units per withdrawal.
•
Minimum fund balance of 5,000 Units is required at all times.
Switching
•
Transaction Form.
Kenanga OneAnswerTM
•
Minimum 1,000 Units per Fund.
Kenanga Cash Plus Fund and Kenanga i-Enhanced Cash Fund
•
Minimum of 5,000 Units per switch.
Transfer
•
Transaction Form.
Kenanga OneAnswerTM
•
Minimum 1,000 Units per Fund.
Kenanga Cash Plus Fund and Kenanga i-Enhanced Cash Fund
•
Minimum 5,000 Units per Fund.
Minimum 1,000 Units for redemption from Kenanga
OneAnswerTM, Kenanga Cash Plus Fund and Kenanga iEnhanced Cash Fund.
* A minimum investment balance of 1,000 Units is required to remain in any Fund under Kenanga OneAnswerTM and 5,000
Units in Kenanga Cash Plus Fund and Kenanga i-Enhanced Cash Fund. If the value of the remaining investment is below this
minimum balance requirement, all remaining Units in the Fund will be redeemed automatically; or such amounts as we may
from time to time decided.
9.9 DISTRIBUTION CHANNELS
The Funds are distributed through our authorized distributors. Our Regional Branch Offices are listed on item 2 – Corporate
Directory.
Investors are advised not to make payment in cash when purchasing Units of a fund via any institutional/retail agent.
9.10 COOLING-OFF
As an investor, you may withdraw your initial investment application with us. You can request for a refund within the cooling-off
period, which is 6 Business days from the date of your first application. You will be refunded your total initial investment amount
(please refer to following example). (EPF investors are subject to EPF’s terms and conditions). A cooling-off right should be
given to an investor who is investing in any unit trust fund managed by a particular management company for the first time.
However, this cooling-off period is not applicable to subsequent investments or to the following type of investors:
•
•
•
A corporation or institution;
Staff of the Management Company; and
Persons registered to deal in unit trust of the Management Company.
71
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
The Management Company will refund your money within 10 calendar days upon receiving your notice to exercise your coolingoff right, subject to your initial funds clearance.
Please note that the example below is for illustration only:
Total initial investment amount into Kenanga Growth Opportunities Fund
Add entry fee (6.5%)
Total refund as per your cooling-off right
RM
10,000.00
650.00
10,650.00
Therefore, if you decide to exercise the cooling-off right, we will refund your total initial payment amount of RM10,650.00.
9.11 MINIMUM FUND SIZE
There is no minimum fund size for Kenanga OneAnswerTM, Kenanga Cash Plus Fund and Kenanga i-Enhanced Cash Fund.
9.12 POLICY ON DISTRIBUTION OF INCOME AND UNCLAIMED MONIES
•
Distribution of income
It is the discretion of the Management Company to pay out income received by the Fund to its investors. Income distribution
shall be effected either by way of cheque or reinvestment of Units in the Fund. Any indivisible income remaining shall be
brought forward for distribution in the next financial year.
Distribution, if any, after deduction of taxation and expenses, are declared monthly (for Kenanga Cash Plus Fund and Kenanga
i-Enhanced Cash Fund) or twice a year (for Kenanga Income Plus Fund and Kenanga Bon Islam Fund) or annually (for
Kenanga Blue Chip Fund, Kenanga Growth Opportunities Fund, Kenanga Shariah Growth Opportunities Fund, Kenanga Ekuiti
Islam Fund, Kenanga Managed Growth Fund and Kenanga Diversified Fund) and will be reinvested to purchase additional
Units in the respective Fund at NAV per Unit without entry fee. Distributions for the Funds will be reinvested by the 15th calendar
day of the following month or at an earlier date as may be determined by the Management Company.
Alternatively, you can also request to receive your distribution income by cheque or credited into your account (according to the
instruction on your investment application form). Distribution of income (if any) will be paid within 2 months from the date of the
distribution declaration.
If you decide to change your distribution instruction, you must notify us in writing at least 14 Business days prior to the
distribution dates. For EPF investors, it is mandatory that all distribution of income shall be reinvested automatically.
•
Distribution income of less that RM250
Distribution income of less than RM250 per Fund will be automatically reinvested on your behalf at NAV per Unit of the Fund.
For distribution payment of RM250 and above, payment will be executed according to the distribution instructions as defined on
your investment application form.
•
Unpresented distribution cheques
You are advised to present your distribution cheques for payment within 6 months from the date of the cheque. Unpresented
cheques will be reinvested in additional Units in the respective Funds at NAV. The reinvestment will be executed on the 15th
calendar day of the following month after expiry of the cheque or such earlier date as may be determined by the Management
Company.
•
Unclaimed monies
Any redemption monies payable to Unitholders which remain unclaimed after such period (currently being 1 year) will be paid to
Registrar of Unclaimed Monies by the Management Company in accordance with the requirements of the Unclaimed Moneys
Act 1965.
9.13 FACSIMILE INSTRUCTION FACILITY
For Kenanga Cash Plus Fund and Kenanga i-Enhanced Cash Fund, you can give us a facsimile instruction to make
withdrawals. The fax number is 03-2057 3711
Before using this facility, you will first need to read and understand the facsimile instruction facility conditions mentioned below.
By ticking “Yes” for the facsimile instruction facility on the investment application form you are deemed to have accepted the
facsimile instruction facility conditions.
72
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
Facsimile instruction facility conditions:
1. Whilst we exercise every care in ensuring the legitimacy of a facsimile instruction, there is still a risk that fraudulent
facsimile redemption requests in respect of your account can be made by someone who has access to your Fund account
number and a copy of your signature.
2. You accept full responsibility for any loss arising as a result of us acting upon instructions given in a facsimile which bears
your Fund account number and a signature which is or appears to be your signature or a signature of an authorized
signatory of the account.
3. You release and indemnify us and the Trustee against all claims and demands in respect of any liabilities arising as a
result of us acting upon instructions given in a facsimile even if those claims/demands are not genuine.
4.
You agree that neither you nor any person claiming through you has any claims against us or the Trust or the Trustee in
relation to a payment made or action taken by us under the facsimile instruction facility if the payment is made in
accordance with these conditions.
5. These terms and conditions are in addition to any requirements for giving instructions to us.
6. We may cancel this facility in the following instances:
a. immediately, if you do not comply with any of these conditions mentioned in this Replacement Master Prospectus; or
b. at any time, after giving you reasonable notice.
7. We may change the conditions but only after notifying you in writing.
8. By signing on the investment application form and requesting for the facsimile instruction facility, you are deemed to have
read and understood the terms and conditions governing the operations of the facsimile instruction facility and agree to
abide by them.
73
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
10. THE MANAGEMENT COMPANY
10.1 BOARD OF DIRECTORS
The Board of Directors takes an active part in the affairs of the Management Company and the unit trust funds under its
management. The Board of Directors meets at least once every quarter to receive recommendations and reports on investment
activities from the investment committee and the senior management team of KIB.
The qualifications and experiences of the members of the Board of Directors are as follows:
Datuk Syed Ahmad Alwee Alsree (Chairman)
Date of Appointment: 11 October 2006
Datuk Syed Ahmad Alwee Alsree was appointed Chairman of KIB on 1 January 2008 after having been appointed to the
Board in October 2006. He was appointed as a Non-Executive Director of K&N Kenanga Holdings Berhad on 28 August 2009
and had, on 26 July 2011, re-designated as Deputy Chairman. Datuk Syed Ahmad Alwee Alsree is also the Group Executive
Director of Cahya Mata Sarawak Berhad (CMSB). He had earlier joined CMS in February 2004 as Group General Manager –
Human Resources where he was responsible for the smooth operations and integration of the various human resource
departments within CMS Group. He was appointed as Deputy Group Managing Director of CMSB in September 2006 and
subsequently re-designated as Group Executive Director in August 2008. Datuk Syed Ahmad graduated with a Bachelor of Law
(LL.B.) from the National University of Singapore, and practiced law in Singapore for over ten (10) years prior to joining CMS
Group.
Apart from K&N Kenanga Holdings Berhad and CMSB, Datuk Syed Ahmad is a director of KKB Engineering Berhad, Kenanga
Investment Bank Berhad and SIG Gases Berhad. He is the Chairman of Samalaju Aluminium Industries Sdn Bhd (formerly
known as Similajau Aluminium Industries Sdn Bhd) and a director of several CMS subsidiaries in financial services, property
development and education.
Syed Zafilen Syed Alwee (Independent Director)
Date of Appointment: 12 May 2008
Syed Zafilen Syed Alwee was appointed as the Director of KIB on 12 May 2008. He has spent his career in managing various
sectors of operations of companies such as sales, marketing, technical, management, finance in local listed companies as well
as multinational including Patimas, Lityan, Cahya Mata Sarawak, Lucent Technologies, Motorola, Mobil and others as well as
being ownership of two other companies. He is currently undergoing an MBA programme in Finance at the University of
Manchester.
YM Raja Dato’ Seri Abdul Aziz bin Raja Salim (Independent Director)
Date of Appointment: 24 February 2012
YM Raja Dato’ Seri Abdul Aziz bin Raja Salim was appointed as the Director of KIB on 24 February 2012. He is an Honorary
Fellow of the Malaysian Institute of Taxation, Fellow of the Chartered Association of Certified Accountants, United Kingdom,
Fellow of the Chartered Institute of Management Accountants ("CIMA"), United Kingdom and a Chartered Accountant
(Malaysia).
He served as Director General of Inland Revenue Malaysia from 1980 to 1990 and Accountant General Malaysia from 1990 to
1994. After his retirement from the Government service, he was appointed as Chairman of BSN Commercial Bank (M) Berhad
from 1995 to 1999. He was a Board Member of several Government agencies and organisations as well as Deputy Chairman of
the Employees Provident Fund and Deputy Chairman of the Universiti Pertanian Malaysia Council. YM Raja Dato' Seri Abdul
Aziz was the President of CIMA, Malaysia from 1976 to 1993 and a council member of CIMA, United Kingdom from 1990 to
1996. He was awarded the CIMA Gold Medal in recognition of his outstanding service to the Accounting Profession. He was a
council member of the Malaysian Institute of Accountants ("MIA") until September 2005 and still sits on many MIA committees.
At present, he is also the Chairman of Gamuda Berhad.
YM Raja Dato' Seri Abdul Aziz is a Director of K & N Kenanga Holdings Berhad, Kenanga Islamic Investors Berhad (Formerly
known as Kenanga Fund Management Berhad), Hong Leong Industries Berhad, Jerneh Asia Bhd, PPB Group Berhad,
Panasonic Manufacturing Malaysia Berhad and Southern Steel Berhad.
Vivek Sharma (Independent Director)
Date of Appointment: 1 October 2012
Vivek Sharma was appointed as the Director of KIB on 1 October 2012. He has over 20 years experience in building and
leading businesses in South East Asia in the fields of higher education, insurance, wealth management, and real estate. He is
currently Managing Director of VS Development, a company which focuses on property development. In financial services, he
was a Director of Investments at Merrill Lynch and a business leader at CiGNA in South East Asia. He was also Executive
Director, Asia for Laureate Higher Education Group, as well as Director of Development, Asia for INSEAD.
He holds a BSc. Economics (Finance) from the Wharton School at the University of Pennsylvania and a MBA from IMD in
Lausanne, Switzerland.
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This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
Bruce Kho Yaw Huat
Date of Appointment: 29 June 2010
Bruce Kho Yaw Huat was appointed as the Director of KIB on 29 June 2010. Bruce has significant experience in building and
leading financial management firms. His experience spans thirty-five (35) years within the fields of finance and management,
twenty four (24) of which were as the Chief Executive Officer, and later Chairman, of the Allianz Group’s Asian asset
management business, a market leader in the provision of asset management services.
Abdul Razak bin Ahmad
Chief Executive Officer/ Executive Director
Date of Appointment: 19 July 2010
Abdul Razak bin Ahmad was appointed as Chief Executive Office / Executive Director of KIB on 19 July 2010. He has more
than twenty (20) years of experience in the financial industry; mainly Asset Management, Unit Trust Business, Corporate
Banking and Treasury. He had held Senior Management positions and directorship in three (3) Investment Management
Organizations in Malaysia. He holds a Bachelor Degree of Science majoring in Business Administration (Finance) Magna Cum
Laude from University of Southwestern Louisiana, USA. He is a holder of the Capital Markets Services Representative’s
Licence and a Certified Financial Planner.
Peter John Rayner
Date of Appointment: 11 November 2010
Peter John Rayner was appointed a Director (and investment committee member) of KIB on 11 November 2010. He has over
thirty (30) years successful experience in building & leading businesses in the fields of Chartered Accounting, Stock Broking,
Private Equity and Asset Management. He has held many senior positions including as Chief Executive Officer of both, Allianz
Global Investors and Saltbush Funds Management in Australia, Executive Director of private equity firm Audant Capital, Head
of Institutional Investment at Perpetual Investments and National Chief Financial Officer of a major Australian hospital group.
He is currently a Director of two Australian private family companies. He holds a business degree (majoring in Accounting &
Finance) from Charles Stuart University in Australia, and is a CPA.
10.2 KEY MANAGEMENT STAFF
Abdul Razak Bin Ahmad
Chief Executive Officer/ Executive Director
Please refer to “The Board of Directors” section for details of Abdul Razak’s profile.
Ismitz Matthew De Alwis
Deputy Chief Executive Officer
Ismitz Matthew De Alwis joined KIB in June 2013 as Deputy Chief Executive Officer following the acquisition of ING Funds
Berhad (“ING Funds) by KIB. He is responsible for the company's retail business, finance, strategic business planning, risk
management and governance, business development, operations and IT functions. He was with ING Funds since 2003 and
was part of the pioneer team who was responsible for the exponential growth of ING Funds in Malaysia. He was the Executive
Director and country head for ING Funds. Before assuming the strategic and executive oversight of ING Funds; he was
responsible for nationwide distribution, product management and business development for retail, corporate and institutional
markets.
He started his career as an investment analyst with a regional research & advisory firm, where he obtains vast regional
exposure in Hong Kong, Philippines, Dubai and Singapore. He was responsible for research, marketing, distribution and
product development. Upon his return to Malaysia, he joined a local established financial institution and investment
management company before joining ING Funds. He brings with him 21 years of experience and multiple expertise including a
number of leadership roles experiences in the field of financial and investment management.
Ismitz Matthew holds a MBA from Southern Cross University where he graduated with distinction and a Bachelor Degree (H) in
Business Administration from RMIT. In addition, he holds two other professional qualifications from the Chartered Institute of
Marketing UK (CIM UK), and is a Certified Financial Planner (CFP). Ismitz Matthew is also a Capital Markets Services
Representative’s Licence holder for investment advice, fund management and dealing in private retirement schemes approved
by the Securities Commission Malaysia.
Lee Sook Yee
Chief Investment Officer
Lee Sook Yee joined KIB as the Chief Investment Officer (“CIO”) in March 2013, bringing with her more than twelve (12) years
of experience in local and regional equities investment. Prior to this, Sook Yee was Head of Equities at Meridian Asset
Management (“Meridian”), where she led an experienced team of fund managers/analysts in managing equities portfolios of
more than RM1 billion in assets under management. At Meridian, she managed various local and regional funds. Before joining
Meridian, Sook Yee was Vice President/Senior Portfolio Manager at Credit-Suisse Asset Management in Singapore where she
co-managed mutual funds focusing on emerging Asian markets. She was also Associate Director/ Portfolio Manager with UOBOSK Asset Management.
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This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
Shahariah Binti Shaharudin
Head, Institutional Business
Shahariah Binti Shaharudin joined KIB in April 2011 as Head of Institutional Business overseeing the wholesale business.
Shahariah brings with her twenty (20) years of experience in the financial services industry. She began her career in a local
bank and has extensive experience in both Retail and Corporate Banking. Subsequently she joined a stock broking company as
Head of Dealing managing Institutional Trade. In 2006, she joined RHB Investment Management Sdn Bhd under Strategic
Business and Market Development Division where her core responsibility is sourcing business and servicing both retail and
wholesale clients ranging from unit trust, corporate and government agencies to insurance companies.
She graduated with Bachelor of Arts Degree in Business Studies from Knox College, Illinois and Master of Arts in Economics
from University of Illinois, Springfield, USA. She holds the Capital Markets Services Representative’s Licence.
Yap Siok Hoon
Head, Retail Client Solutions & Services Group
Yap Siok Hoon joined KIB in May 2012 as Head of the Retail Client Solutions & Services Group, overseeing the KIB’s retail
unit trust business. Siok Hoon brings with her fifteen (15) years of experience in the asset management industry and holds a
Bachelor (First Class Honours) in Business Administration degree from Universiti Utara Malaysia. She started her career with
Hong Leong Asset Management (HLAM) in April 1997 and has held many senior management positions, ultimately rising to a
position of General Manager, Client Solutions Group, in July 2011. This role saw her managing the departments of both Retail
and Institutional Business Development and Customer Experience. Her specific experience includes distribution channel sales
and marketing support, agency and Institutional Unit Trust Adviser (IUTA) development, training and product development.
Andrew Chan Yee Kok
Head, Finance & Investment Operations
Andrew Chan Yee Kok joined KIB in June 2013 to head the Finance & Investment Operations team. Prior to this, Andrew was
with ING Funds Berhad (“ING Funds”), where he joined since 2004. He has been with ING Funds since the company’s
inception and is one of the pioneers during the company’s green field set-up. Andrew has more than 20 years of experience in
the business management, finance and accounting field. He started his accounting career in Australia. Upon his return, he
joined a public-listed company as a senior accountant. His last stint prior to joining ING Funds was with an established unit trust
management company where he was responsible for all financial reporting and management. Andrew is a CPA, Aust and holds
a Bachelor of Economics from La Trobe University, Melbourne, Australia.
Mariam Veronica Abu Bakkar Seddek
Head, Compliance
Mariam Veronica Abu Bakkar Seddek joined KIB in July 2012 as Head of Compliance. She graduated with a Bachelor of
Science in Accounting from University of Wales Cardiff, United Kingdom in 1998. She worked as a teacher in the United
Kingdom for a year before joining the SC in 1999. She served the SC for 8.5 years where she specialised in auditing asset
management companies. Thereafter, she served as the Head of Compliance in a fund management company for 4 years.
.
10.3 THE MANAGEMENT COMPANY’S TRACK RECORD AND EXPERIENCE
Pursuant to a vesting order granted by the High Court of Malaya on 25 April 2013, ING Funds Berhad has transferred its entire
business including all assets and liabilities to the Management Company with effect from 8 June 2013.
The Management Company was incorporated as a public limited company on 2 August 1995 under the Companies Act 1965
with an authorised share capital of RM20,000,000.00 comprising 20,000,000 ordinary shares of RM1.00 each of which
6,765,300 are issued and fully paid up. KIB is 100% owned by Kenanga Investment Bank Berhad which is a wholly-own
subsidiary of K & N Kenanga Holdings Berhad.
The Management Company is licensed and authorised to conduct business in distributing unit trust funds and fund
management on behalf of corporate, institutional and individual clients under the CMSA 2007. The Management Company
established its maiden fund, the Kenanga Premier Fund, on 26 November 1996 and has since then been managing an array of
unit trust funds and private mandates. As at 8 June 2013, the Management Company manages 27 unit trust funds and other
funds from government agencies, pension funds, insurance, corporate and individual clients with a total fund size of more than
RM5 billion. The Management Company has the services of 95 experienced personnel (80 executives, and 15 non-executives).
10.4 SUMMARY OF FINANCIAL POSITION FOR THE LAST 3 YEARS
Issued and paid-up capital
Shareholders’ funds
Turnover
Pretax profit/ (loss)
After tax profit/ (loss)
Year ended
31 December 2012
RM’000
6,765
11,036
12,178
(1,914)
(1,741)
Year ended
31 December 2011
RM’000
6,765
12,777
10,234
(1,473)
(1,290)
Year ended
31 December 2010
RM’000
6,765
14,067
10,790
875
439
76
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
10.5 ROLES, DUTIES AND RESPONSIBILITIES OF THE MANAGEMENT COMPANY
The Management Company is responsible for the day-to-day management, marketing and administration of the Fund, where its
key functions include:
a) Endeavouring that the Fund is managed in a sound and professional manner in accordance with its investment objectives,
the provisions of this Replacement Master Prospectus and the Deed;
b) Endeavouring that the Fund is properly administered and to arrange for sale and redemption of Units of the Fund;
c) Issuing the Fund’s interim and annual reports to Unitholders;
d) Keeping proper records of the Fund; and
e) Keeping Unitholders informed on material matters relating to the Fund.
10.6 MATERIAL LITIGATION AND ARBITRATION
As at 30 May 2013, save as disclosed below, the Management Company is not engaged in any litigation or arbitration
proceedings, either as plaintiff or defendant which has a material effect on the financial position of the Management Company,
and the Board of Directors is not aware of any proceedings pending or threatened, or of any fact likely to give rise to any such
proceedings which might materially and adversely affect the position or business of the Management Company.
An ex-employee of the Management Company who was dismissed by the Management Company has filed an action under
section 20(3) of the Industrial Relations Act 1967 to challenge his dismissal. The ex-employee contends that his dismissal was
without just cause or excuse and is seeking to be reinstated to his former position without any loss of salary and benefits.
The matter came up for further submissions on 31 January 2011 before the Industrial Court in Kuching. The learned chairman
then adjourned the matter and informed us that he will be handing down his written decision on the above matter in due course.
As at 30 May 2013 the learned chairman has yet to deliver his decision on the case.
The Directors are of the opinion that the claim has no bearing on the performance of the Fund and that it has no adverse effect
on the capability of the Management Company in discharging its duties and responsibilities to the Unitholders of the Fund.
10.7 INVESTMENT COMMITTEE MEMBERS
The committee’s roles and responsibilities include the following:
(a) Selecting appropriate strategies to achieve the proper performance of the Fund in accordance with the fund management
policies;
(b) Ensuring that the strategies selected are properly and efficiently implemented by the Management Company; and
(c) Actively monitor, measure and evaluate the fund management performance of the Management Company.
The Committee meets four times yearly or as circumstances require.
The investment committee comprises the following members:
Bruce Kho Yaw Huat (Chairman)
Syed Zafilen Syed Alwee (Independent Member)
Vivek Sharma (Independent Member)
Abdul Razak bin Ahmad
Peter John Rayner
Please refer to “The Board of Directors” section for details of their profiles.
10.8 INVESTMENT MANAGEMENT TEAM
Lee Sook Yee
Chief Investment Officer
(The designated fund manager for the Funds)
Please refer to “Key Management Staff” section for details of Sook Yee’s profile.
Wong Yew Joe
Director of Investment, Fixed Income
Wong Yew Joe joined KIB in April 2011, bringing with him more than eleven (11) years of experience in the fund management
industry. Prior to this, he has been in RHB Investment Management Sdn Bhd (RHBIM) for a total of seven (7) years. As the
Head of Fixed Income in RHBIM, he was responsible for all fixed income investments, totalling about RM 9 billion worth of
funds managed by RHBIM. Prior to RHBIM, he was with SBB Asset Management Sdn Bhd for a year as a credit analyst.
Before that, he was with BHLB Asset Management Sdn Bhd and his principal involvement there was in business development
and corporate marketing. Yew Joe is a graduate from the University of Southern Queensland with a Bachelor’s Degree,
majoring in Accounting and Finance.
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This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
Tammi Lim Geok Wah
Director of Investment, Equities
Tammi Lim Geok Wah joined KIB in October 2011. Prior to this, she was attached to RHB Investment Management as Head
of Equities for over four (4) years where she was responsible for the management of institutional funds, unit trust funds and
corporate accounts. She began her career as an investment analyst in TA Securities Holding Berhad servicing both institutional
and retail clients. Thereafter, she moved on to the fund management industry with Asialife Insurance Berhad and Manulife
Insurance Berhad where she was responsible for the management of both company’s life funds as well as investment-linked
funds. She has more than eighteen (18) years experience in the fund management industry. She graduated from the
University of Toledo, Ohio with a Masters of Business Administration, majoring in Finance.
Syhiful Zamri Bin Abdul Azid
Director of Investment, Credit and Advisory
Syhiful Zamri Bin Abdul Azid joined KIB in April 2011. Prior to this, he was with RHB Investment Management Sdn Bhd
(RHBIM) as Head of Fund Management Research for more than three (3) years. He has also been with KAF Investment Bank
for more than five (5) years before joining RHBIM. He has wide experience in both equity and fixed income research and had
exposures doing financial analysis and marketing of unit trust funds. He graduated with an Honours Degree from De Montfort
University (UK) with Bachelor in Accounting and Finance. He has more than ten (10) years experience in the industry.
Nik Hazim Nik Mohamed
Senior Portfolio Manager
Nik Hazim Nik Mohamed joined the Management Company in April 2009 as a fund manager. Prior to this, he was with
Permodalan Nasional Berhad (PNB) having almost fourteen (14) years experience in the company. During his stint in PNB, he
had started out managing international funds for proprietary accounts and later on public funds in Singapore. He also has wide
experience in managing local unit trust fund for PNB and had exposures doing financial analysis and marketing of unit trust
funds. He graduated with an Honours Degree from Universiti Utara Malaysia in Bachelor in Business Administration majoring in
Finance.
Tan Lip Kwang
Portfolio Manager
Tan Lip Kwang joined Kenanga Group in May 2007. He started as an analyst in Kenanga Fund Management Berhad and
trained as a generalist specializing in Malaysia market. He was promoted as a portfolio manager in August 2009 after obtaining
his Capital Markets Services Representative’s Licence in July 2009. Prior to Kenanga Fund Management Berhad, he was an
internal auditor with Public Bank for one and a half year. Lip Kwang holds a Bachelor Degree in Finance from Lancaster
University and a MSC in Actuarial Science from City University of London. Lip Kwang was appointed as the portfolio manager
of KIB on 1 November 2010.
78
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
11.
SHARIAH ADVISER
IBFIM
IBFIM has been appointed as the Shariah adviser for Kenanga Shariah Growth Opportunities Fund, Kenanga Ekuiti Islam Fund,
Kenanga Shariah Balanced Fund, Kenanga Bon Islam Fund and Kenanga i-Enhanced Cash Fund (“the Shariah Funds”).
Scheduled to meet the Management Company and/or the investment committee of the Shariah Funds every quarter, IBFIM will
advise the Management Company on the selection of investment tools to be adopted. IBFIM will also counsel the mechanism
of the operations of the Shariah Funds’ activities to ensure that the operations of the Shariah Funds comply with Shariah
requirements.
11.1 General Information of IBFIM
IBFIM was incorporated as a company limited by guarantee and not having share capital in Malaysia under the Companies Act,
1965 on 15 February 2007.
Experience in Advisory and Services
IBFIM is registered with the SC to act as a Shariah adviser for Shariah-compliant collective investment schemes and sukuk
issuance. IBFIM is also involved in numerous Shariah-compliant private mandates as well as the Shariah adviser for Islamic
REITs and Islamic asset management houses.
As at 30 January 2013, IBFIM has total staff strength of 59 employees, and has 69 funds under its supervision.
11.2 Roles and Responsibilities of IBFIM as the Shariah adviser
As the Shariah adviser, the role of IBFIM is to ensure that the operations and investments of the Shariah Funds are in
compliance with Shariah requirements. The Shariah adviser reviews the Shariah Funds’ investments on a monthly basis to
ensure compliance with Shariah requirements at all times and meets with the Management Company on a quarterly basis to
review and advise on the Shariah Fund’s compliance with Shariah requirements. Final responsibility for ensuring Shariah
compliance of the Shariah Funds with Shariah requirements in all relevant aspects rests solely with the Management Company.
In line SC Guidelines, the roles of IBFIM as the Shariah adviser are;
1.
2.
3.
4.
5.
6.
7.
8.
Ensuring that the Shariah-compliant unit trust Shariah Funds(“the Shariah Funds”) is managed and administered in
accordance with the Shariah principles;
Providing expertise and guidance for the Shariah Funds in all matters relating to Shariah principles, including on the
Shariah Funds’ deed and information memorandum, its structure and investment process, and other operational and
administrative matters;
Consulting the SC who may consult the Shariah Advisory Council where there is any ambiguity or uncertainty as to an
investment, instrument, system, procedure and/or process;
Scrutinising the Shariah Funds’ compliance report as provided by the compliance officer, transaction report provided by or
duly approved by the trustee and any other report deemed necessary for the purpose of ensuring that the Shariah Funds’
investments are in line with the Shariah principles;
Preparing a report to be included in the Shariah Funds’ quarterly and annual report certifying whether the Shariah Funds
have been managed and administered in accordance with the Shariah principles;
Ensuring that the Shariah Funds comply, with any guideline, ruling or decision issued by the SC, with regard to Shariah
matters;
Vetting and advising on the promotional materials of the Shariah Funds;
Assisting and attending to any ad-hoc meeting called by the SC and/or any other relevant authority.
11.3 Profile of the Shariah Team
IBFIM’s Shariah team consists of the following personnel;
Mohd Bakir Haji Mansor (Distinguished Shariah Advisor)
Mohd Bakir Haji Mansor is a member of the Shariah Supervisory Council of Bank Islam Malaysia Berhad (BIMB), the Shariah
Advisory Body of Syarikat Takaful Malaysia Berhad, the Shariah Advisory Committee of the Employees Provident Fund and sits
on the Shariah Panel Committee of Amanah Ikhtiar Malaysia. He is also the Chairman of the Shariah Advisory Committee of
BIMB Securities Sdn. Bhd and the Shariah Advisory Committee of the Association of Islamic Banking Institutions Malaysia.
Prior to joining IBFIM, Mohd Bakir was the Shariah Coordinator at BIMB, from 1984 to 2001. Previously, he served at the
National Council for Islamic Religious Affairs in the Prime Minister's Department for 10 years from 1971. He was also a Chief
Assistant Director at the Islamic Research Centre for 4 years from 1981. He holds a Shahadah Ulya from Kolej Islam Malaya.
Mohd Bakir was awarded “Tokoh Maulidur Rasul 1434H/2013M” by the government of Malaysia for his contribution in the
setting up and subsequent development of the Islamic finance industry.
79
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
Mohd Nasir Ismail (Shariah Advisor)
Mohd Nasir Ismail, IFP, has been with IBFIM since its incorporation. He is responsible in providing Shariah input on the
advisory, consultancy and research functions with regard to Islamic banking, takaful, Islamic capital market and Shariahcompliant unit trust Fund. Prior to joining IBFIM, he was with Institut Pengajian Ilmu-Ilmu Islam, Kelantan. He graduated with a
Bachelor of Shariah (Honours) from the University of Malaya in 1998. He is also the designated person responsible for Shariah
matters related to the Shariah-compliant Funds.
Ahmad Zakirullah Mohamed Shaarani (Senior Shariah Officer)
Ahmad Zakirullah Mohamed Shaarani joined IBFIM in February 2008. He is responsible in providing Shariah input on the
advisory, consultancy and research functions with regard to Islamic banking, takaful, Islamic capital market and Shariahcompliant unit trust Fund. Prior to joining IBFIM, he served at University Sains Islam Malaysia before joining PTPL College. He
obtained his Master in Islamic Revealed Knowledge and Human Sciences from International Islamic University of Malaysia
(Honours), Bachelor of Shariah Islamiyyah (Honours) from Al-Azhar University, Egypt and Diploma of Shariah Islamiyyah
(Honours) from Higher Institute of Islamic and Arabic Language (MADIWA). He is also the designated person responsible for
Shariah matters related to the Shariah-compliant Funds.
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This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
12. TRUSTEE
12.1 DIRECTORS
The Directors of the Trustee are:
•
•
•
Zahardin Bin Omardin
Chan Swee Liang Carolina
Liew Pik Yoong (Alternate Director to Chan Swee Liang Carolina)
Head of Trustee Services – Liew Pik Yoong
Head of Operations - Lee Kooi Yoke
12.2 TRUSTEE’S EXPERIENCE
CIMB Commerce Trustee Berhad “CCTB” is a company incorporated in Malaysia and registered as a trust company under the
Trust Companies Act 1949. CCTB was incorporated on 25 August 1994 and has been involved in the unit trust industry for 17
years. It has an authorised capital of RM5,000,000 divided into 500,000 ordinary shares of RM10 each of which the total issued
capital is RM3,500,000 divided into 350,000 ordinary shares of RM10 each, and the total paid up capital is RM1,750,000
divided into 350,000 ordinary shares of RM10 each and partly paid-up at RM5 each. As at 10 May 2013, CCTB acts as Trustee
for 1 real estate investment trust, 56 unit trust funds,11 wholesale funds and 1 private retirement scheme (consisting of 4 funds)
and the total staff employed is 24, which consists of 22 executives and 2 non-executives.
12.3 FINANCIAL POSITION
The following is a summary of the past performance of the Trustee based on audited accounts for the last 3 years:
Paid-up capital
Shareholders’ funds
Turnover
Pre-tax profit
After tax profit
31 December
2012
(unaudited)
1,750,000
8,600,411
7,916,998
2,595,941
1,999,449
Financial year ended
31 December
2011
31 December
2010
31 December
2009
1,750,000
6,600,962
6,288,772
1,802,326
1,354,399
1,750,000
6,496,563
7,112,941
2,588,078
1,936,057
1,750,000
5,696,309
7,037,826
3,339,506
2,465,070
12.4 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, all relevant laws and rules of law.
12.5 ROLES, DUTIES AND RESPONSIBILITIES OF THE TRUSTEE IN RELATION TO THE FUND
The Trustee’s functions, duties and responsibilities are set out in the Deed. The general function, duties and responsibility of the
Trustee include, but are not limited to, the following:
(a) Take into custody the investments of the Fund and hold the investments in trust for the Unitholders.
(b) Ensure that the Management Company operates and administers the Fund in accordance with the provisions of the Deed,
Guidelines and acceptable business practice within the unit trust industry.
(c) As soon as practicable notify the SC of any irregularity or breach of the provisions of the Deed, Guidelines and any other
matters which in the Trustee's opinions may indicate that the interests of Unitholders are not served.
(d) Exercise reasonable diligence in carrying out its functions and duties, in actively monitoring the operation and management
of the Fund by the Management Company to safeguard the interests of Unitholders.
(e) Maintain, or cause the Management Company to maintain, proper accounting records and other records as are necessary
to enable a complete and accurate view of the Fund to be formed and to ensure that the Fund is operated and managed in
accordance with the Deed of the Fund, Replacement Master Prospectus, the Guidelines and securities law.
(f) Require that the accounts be audited at least annually.
The Trustee has covenanted in the Deed that it will exercise all due diligence and vigilance in carrying out its functions and
duties, and in safeguarding the rights and interests of Investors.
12.6 MATERIAL LITIGATION AND ARBITRATION
There is no current material litigation and arbitration including those pending or threatened or 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.
81
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
12.7 TRUSTEE’S OBLIGATION
The Trustee's obligation in respect of monies paid by an investor for the application of units arises when the monies are
received in the relevant account of the Trustee for the Funds and the Trustee's obligation is discharged once it has paid the
redemption amount to the Management Company.
12.8 TRUSTEE’S DELEGATE AND DELEGATE’S ROLES AND DUTIES
CIMB Commerce Trustee Berhad has appointed CIMB Group Nominees (Tempatan) Sdn Bhd as the Trustee’s delegate to
perform custodial function. CIMB Group Nominees (Tempatan) Sdn Bhd is a wholly owned subsidiary of CIMB Bank Berhad. Its
custodial function includes safekeeping, settlement and corporate action related processing and cash and security reporting.
All investments are automatically registered in the name of the Fund. CIMB Group Nominees (Tempatan) Sdn Bhd acts only in
accordance with instructions from the Trustee.
82
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
13. SALIENT TERMS OF THE DEED
13.1 UNITHOLDERS’ RIGHTS
As a Unitholder in the Fund, your rights include:1. To receive the distribution of the Fund, participate in any increase in the capital value of the Units and to other rights and
privileges as set out in the Deed;
2. To call for Unitholders’ meetings;
3. To vote for the removal of the Trustee or the Management Company through a special resolution;
4. To exercise the cooling-off right;
5. To receive annual reports and interim reports of the Fund.
Your rights may be varied by changes to the relevant Deed, the Guidelines or judicial decisions or interpretation.
13.2 UNITHOLDERS’ LIABILITIES
According to the law and the Deed, your liability is limited to the value of your investments in the Fund. As Unitholders, you will
not personally indemnify the Trustee and/or the Management Company in the event the Fund’s liabilities exceed its assets.
13.3 MAXIMUM FEES AND CHARGES PERMITTED BY THE DEED
Entry fee
Redemption
charge
8% of the NAV
per Unit
8% of the NAV
per Unit
Management fee*
Trustee fee*
Switching/
transfer fee
Kenanga OneAnswerTM
Kenanga Blue Chip
Fund
Kenanga Growth
Opportunities Fund
Kenanga Shariah
Growth Opportunities
Fund
Kenanga Ekuiti Islam
Fund
Kenanga Managed
Growth Fund
Kenanga Diversified
Fund
Kenanga Shariah
Balanced Fund
Kenanga Income Plus
Fund
3% per annum of
the NAV
Not exceeding
0.2% per annum
of the NAV,
subject to a
minimum fee of
RM18,000 per
annum.
(If any) Shall be
determined by the
Management
Company and
adequately
disclosed in the
Replacement
Master Prospectus.
Kenanga Bon Islam
Fund
Kenanga Cash Plus Fund
5% of the NAV per
Unit
5% of the NAV
per Unit
Kenanga i-Enhanced Cash 8% of the NAV per
Fund
Unit
* Any increase in the fees and/or charges that is stated in this Replacement Master Prospectus may be made provided a
supplemental master prospectus is issued and the maximum rate stated in the Deed shall not be breached.
Any increase of the fees and/or charges above the maximum stated in the Deed shall require Unitholders’ approval.
13.4 PERMITTED EXPENSES PAYABLE BY THE FUND
Only the expenses which are directly related and necessary to the business of the Fund may be charged to the Fund. Among
others:
Kenanga OneAnswerTM and Kenanga Cash Plus Fund
•
•
•
•
•
•
All fees authorized by the Deed to be paid out to the Trustee and Management Company;
All fees and disbursement incurred by the auditor;
Professional and accounting fees and disbursement approved by the Trustee;
Costs of printing and dispatching to Unitholders the accounts of the trust, tax vouchers, distribution, warrants, notices of
meeting of Unitholders, newspaper advertisements required by the Deed and such other similar costs as may be approved
by the Trustee;
Valuation fees, duties and taxes payable in respect of the Funds;
All expenses incurred by the Trustee in effecting registration, insurance or safe custody of the documents of title to all
investments held upon trust.
83
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
Kenanga i-Enhanced Cash Fund
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Commissions/fees paid to brokers in effecting dealings in the investments of the Fund, shown on the contract notes or
confirmation notes;
Taxes and other duties charged on the Fund by the government and/or other authorities;
Costs, fees and expenses properly incurred by the auditor appointed for the Fund;
Costs, fees and expenses incurred for the valuation of any investment for the Fund by independent valuers for the benefit
of the Fund;
Costs, fees and expenses incurred for any modification of the Deed save where such modification is for the benefit of the
Management Company and/or the Trustee;
Costs, fees and expenses incurred for any meetings of the Unitholders save such meeting is convened for the benefit of
the Management Company and/or Trustee;
Costs, commissions , fees and expenses of the sale, purchase, insurance and any other dealing of any asset of the Fund;
Costs, fees and expenses incurred in engaging any specialist approved by the Trustee for investigating or evaluating any
proposed investment of the Fund;
Costs, fees and expenses incurred in engaging any valuer, adviser or contractor for the benefit of the Fund;
Costs, fees and expenses incurred in the preparation and audit of the taxation, returns and accounts of the Fund;
Costs fees and expenses incurred in the termination of the Fund or the removal of the Trustee or the Management
Company and the appointment of a new trustee or management company;
Costs, fees and expenses incurred in relation to any arbitration or other proceedings concerning the Fund or any asset of
the Fund, including proceedings against the Trustee or the Management Company by the other for the benefit of the Fund
(save to the extent that legal costs incurred for the defence of either of them are not ordered by the court to be reimbursed
by the Fund);
Remuneration and out-of-pocket expenses of the independent members of the investment committee of the Fund, unless
the Management Company decides otherwise;
Costs, fees and expenses deemed by the Management Company to have been incurred in connection with any change or
the need to comply 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.
13.5 FACTORS THAT MAY LEAD TO THE RETIREMENT, REMOVAL OR REPLACEMENT OF THE MANAGEMENT
COMPANY
The Management Company may retire by giving 12-month notice to the Trustee of its desire to do so or such shorter period as
the Management Company and the Trustee may agree upon, and may by the Deed appoint, in its stead, a new management
company, which is approved by the SC.
The Trustee may remove the Management Company and have another company appointed as management company by
special resolution of Unitholders at a duly convened meeting of which notice has been given to the Management Company, the
Trustee and Unitholders.
The Trustee may remove the Management Company on the grounds that the company has gone into liquidation (except a
voluntary liquidation) or has breached its obligations under the Deed and has failed or neglected to carry out its duties to the
satisfaction of the Trustee.
13.6 POWERS OF THE MANAGEMENT COMPANY TO REMOVE OR REPLACE THE TRUSTEE
The Trustee may be removed and another trustee may be appointed by special resolution of the Unitholders at a Unitholders’
meeting convened in accordance with the Deed. The Management Company shall take all reasonable steps to replace a
trustee as soon as practicable after becoming aware that:
(a)
(b)
(c)
(d)
The Trustee has ceased to exist;
The Trustee has not been validly appointed;
The Trustee is not eligible to be appointed or to act as Trustee under section 290 of the CMSA;
The Trustee has failed or refused to act as Trustee in accordance with the provisions or covenants of the Deed or the
provisions of the CMSA;
(e) A receiver is appointed over the whole or a substantial part of the assets or undertaking of the existing Trustee and has not
ceased to act under the appointment, or a petition is presented for the winding up of the existing trustee (other than for the
purpose of and followed by a reconstruction, unless during or following such reconstruction the existing Trustee becomes
or is declared to be insolvent);
(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 relevant securities and other laws.
13.7 FACTORS THAT MAY LEAD TOWARDS THE RETIREMENT, REMOVAL OR REPLACEMENT OF THE TRUSTEE
The Trustee may retire by giving a 12-month notice to the Management Company of its desire to do so or such shorter period
as the Management Company and the Trustee may agree upon, and may by supplemental deed appoint, in its stead, a new
trustee, which is approved by the SC.
The Trustee may be removed and another trustee may be appointed by special resolution of the Unitholders at a Unitholders’
meeting convened in accordance with the Deed.
84
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
13.8 POWER OF THE TRUSTEE TO REMOVE, RETIRE OR REPLACE THE MANAGEMENT COMPANY
The Management Company may be removed by the Trustee on the grounds that the Management Company is in breach of its
obligations under the Deed or it 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 the investors for it to do so, after it has given notice and reasons and has
considered representations made by the Management Company in respect of that opinion, and after consultation with the
relevant authorities.
13.9 TERMINATION OF THE FUND
Instances where the Fund may be terminated:
•
•
•
•
•
Revocation of SC’s approval;
The Management Company is in liquidation or ceased to carry on business or failed to comply with the Deed or provisions
of the CMSA and a resolution to wind up the Fund has been confirmed by the court;
Special resolution is passed to terminate/wind up the Fund;
Fund has matured; or
Fund has no assets as a result of a transfer scheme.
After selling the Fund’s property, the Management Company may choose to distribute the net cash proceeds to Unitholders.
While the Fund is being terminated, the Management Company will prepare annual and interim reports or may decide otherwise
after consulting with the auditor and the SC.
13.10 UNITHOLDER’S MEETING
A Unitholders’ meeting may be called by the Management Company, Trustee and/or Unitholders. Any such meeting must be
convened in accordance with the Deed and/or the Guidelines.
Every question arising at any meeting shall be decided in the first instance by a show of hands unless a poll is demanded of it
be a question which under the Deed requires a special resolution, in which case a poll shall be taken. On a show of hands
every Unitholder who is present in person or by proxy shall have 1 vote.
The quorum for a Unitholders’ meeting is 5 Unitholders, whether present in person or by proxy, provided always that for a
meeting which requires a special resolution the quorum for that meeting shall be 5 Unitholders, whether present in person or by
proxy, holding an aggregate at least 25% of the Units in issue for the Fund at the time of the meeting. If the Fund has 5 or less
Unitholders, the quorum shall be 2 Unitholders, whether present or by proxy and if the meeting requires a special resolution the
quorum for that meeting shall be 2 Unitholders, whether present in person or by proxy, holding an aggregate at least 25% of the
Units in issue of the Fund at the time of the meeting.
85
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
14. RELATED-PARTY TRANSACTIONS AND CONFLICT OF INTEREST
14.1 RELATED-PARTY TRANSACTIONS
The Kenanga Group (i.e. Kenanga Holdings Berhad and its subsidiaries) and all of its staff are allowed to invest in any of the
funds managed by the Management Company.
All the transactions made by the related parties are processed as per any transactions made by normal investors.
To the best of our knowledge, the Directors and shareholders of the Management Comoany do not have any direct and indirect
interests in other corporations carrying on a similar business
14.2 POLICY ON CONFLICT OF INTEREST
Management Company
Directors, investment committee members and staff of the Management Company must be alert and avoid or declare any
conflict of interest situations to the company secretary. A situation of conflict of interest may erode the trust and confidence of
the public in dealing with us.
All conflict of interest situations, if any, will be forwarded to the investment committee for verification before a fair and equitable
decision is reached. The decision from the investment committee will be final.
None of our directors or substantial shareholders has any direct or indirect interest in other corporations carrying on a similar
business as the Management Company as at 30 May 2013.
Members Dealing in Securities
(a) Trading in securities by a member for his/her personal account or for a connected person or under the name of a nominee
is not encouraged and if done so, he/she should ensure that the dealing is not taking advantage or be viewed as taking
advantage of information not generally known to the public (“Chinese Wall” provision = artificial barriers to the flow of
information).
(b) Dealings by employees in their own name but on behalf, and for the benefit, of another person may only be carried out with
the prior approval of a Director and/or CEO.
(c) A member when dealing in securities whether for the Management Company, the client or personal account shall
consistently adhere to ethical standards in such dealings. A member shall not engage in share dealing transactions of a
nature that is questionable or illegal and therefore shall not engage in share dealing transactions, either by himself or with
others which are, or which will give resemblance of false trading, market rigging or market manipulation.
Trustee – CIMB Commerce Trustee Berhad
As Trustee for the Fund, 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 Guidelines, 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 Unitholders. 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 Unitholder or enter into any contract or transaction with each other, the Fund or any Unitholder 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.
86
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
15. TAXATION ADVISERS’ LETTER IN RESPECT OF TAXATION OF THE UNIT TRUST AND THE UNITHOLDERS
87
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
88
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
89
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
90
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
91
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
92
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
93
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
94
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
95
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
16. ADDITIONAL INFORMATION
16.1 MANAGING YOUR INVESTMENT PORTFOLIO
Unitholders can seek the assistance of our marketing personnel on Fund related issues at our business office during our business
hours from 8.30 a.m. to 5.30 p.m. from Monday to Friday.
16.2 KEEPING TRACK OF YOUR INVESTMENT
When you make any transactions in the Fund, we will send you a transaction advice stating that your transaction has been
processed in accordance with your instructions.
During any particular financial year, as a Unitholder, you will receive:
•
An audited annual report for the financial year-end of the Fund, which provides an account of the Fund including a
complete portfolio listing and your annual statement reflecting the transactions for the year;
•
An unaudited 6 months interim report which provides an account of the Fund including a complete portfolio listing and your
interim statement reflecting the transactions for the period;
•
A tax voucher showing details required for submission to the Inland Revenue Department at every income distribution (if
any) of the Fund.
You can also:
•
Check the current value of your investments by calling our Investor Services Centre or any of our appointed IUTA and
CUTA;
•
Check NAV per Unit which is published daily in our website at www.KenangaInvestors.com.my.
16.3 POLICY ON MONEY LAUNDERING
Money laundering is a process intended to conceal the benefits derived from unlawful activities which are related, directly or
indirectly, to any serious offence so that they appear to have originated from a legitimate source.
The Anti-Money Laundering and Anti-Terrorism Financing Act 2001 (AMLA) is the act that provides for the offence of money
laundering and also the measures to be taken for the prevention of money laundering and terrorism financing offences. The
Financial Intelligent Unit (FIU) of Bank Negara Malaysia (BNM) has been established to carry out the functions as the
competent authority under the AMLA. All market intermediaries under the Capital Market and Services Act 2007 and
management companies approved by the Securities Commission under the Capital Markets and Services Act 2007 are obliged
to comply with the provisions of the AMLA.
Under the AMLA, any person who:
a) engages in, or attempts to engage in; or
b) abets the commission of, money laundering, commits an offence and shall on conviction be liable to a fine not exceeding five
million ringgit or to imprisonment for a term not exceeding five years or both.
When opening new accounts and entering into a transaction with a client, the Management Company identifies and verifies 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 by the Management
Company in accordance with relevant laws. Where the Management Company suspects that a particular transaction may not
be genuine, a report will be made to the FIU.
16.4 DISCLOSURE OF MATERIAL CONTRACTS
Save and except for the following contract, there are no material contracts in respect of the Funds (including contracts not
reduced in writing), not being contracts entered in the ordinary course of business which have been entered into within two (2)
years preceding the date of this Master Prospectus.
A business transfer agreement dated 19 April 2013 was entered into between the Management Company and ING Funds
Berhad for the transfer of the whole business of ING Funds Berhad to the Management Company. The consideration for the
purchase of ING Funds Berhad’s business under the business transfer agreement shall be the sum in Ringgit Malaysia (RM)
equivalent to the net asset value of ING Funds Berhad (on a consolidated basis) as at the last day of the calendar month
immediately preceding the completion of the sale and purchase of ING Funds Berhad’s business. The purchase price shall be
recorded as an amount owing by the Management Company to ING Funds Berhad.
16.5 DISTRIBUTION CHANNELS PREMISES
Units of the Fund can be purchased or redeemed through any of our regional branch offices, KIB’s advisers or Institutional Unit
Trust dvisers listed under item 2 - Corporate Directory.
96
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
17. CONSENT
The consents of the Trustee, bankers, auditor, taxation adviser, Shariah adviser and solicitor for inclusion in this Replacement
Master Prospectus of their names in the form and context in which such names appear have been given before the issue of this
Replacement Master Prospectus and have not subsequently been withdrawn.
97
This Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014 replaces the ING Funds Master Prospectus
dated 23 April 2013 and ING Funds First Supplementary Master Prospectus dated 3 May 2013 which expires on 22 April 2014.
18. DOCUMENTS AVAILABLE FOR INSPECTION
For a period of not less than 12 months, the following documents or copies of them or other documents as may be required by
the SC (where applicable) is available for inspection at the registered office of the Management Company or such other place
as the SC may determine:
•
•
•
•
•
•
•
The Deed and supplemental deed;
Each contract disclosed in this Replacement Master Prospectus and, in the case of contracts not reduced in writing, a
memorandum which gives full particulars of the contracts;
The latest annual and interim reports of the Funds;
The audited financial statements of the Funds and Management Company for the current financial year (where applicable)
and the last 3 financial years or from the date of establishment/incorporation, if less than 3 years, preceding the date of this
Replacement Master Prospectus;
All reports, letters or other documents, valuations and statements by any expert, any part of which is extracted or referred
to in this Replacement Master Prospectus. Where a summary expert’s report is included in this Replacement Master
Prospectus, the corresponding full expert’s report should be made available for inspection;
Writ and relevant cause papers for all current material litigation and arbitration disclosed in this Replacement Master
Prospectus;
All consents given by experts disclosed in this Replacement Master Prospectus.
98

ACCOUNT OPENING & INVESTMENT FORM
by the investor will affect the outcome of the recommendation made and in such a case, Kenanga Investors Berhad and its authorized distributors may not be held liable for
into account your risk profile and you seek to invest in a product which is within the range of products that has been recommended. For definition of ‘investor type’, refer
to
Investors should read and understand the contents of the relevant Prospectus(es) / Information Memorandum(s) for the Fund(s) to be invested in.
Name*
Male
Female
& Age (as at the time
this product was
1.9 Mother’s Maiden
Name
1.11 Education Level
1.13
1.14
PLEASE TICK IF YOU CONSENT TO RECEIVE COMMUNICATIONS AND/OR INFORMATION FROM KIB
RELATING TO YOUR INVESTMENT VIA EMAIL. NOTICES DELIVERED VIA EMAIL TO APPLICANT ARE
DEEMED SENT AND RECEIVED ON THE DATE SUCH EMAIL IS SENT.
PLEASE TICK IF YOU CONSENT TO RECEIVE COMMUNICATIONS AND/OR INFORMATION FROM KIB
RELATING TO YOUR INVESTMENT VIA EMAIL. NOTICES DELIVERED VIA EMAIL TO APPLICANT ARE
DEEMED SENT AND RECEIVED ON THE DATE SUCH EMAIL IS SENT.
1.15
1.16
1.17
1.18
retirement
Page 1 of 11
product
(i.e. after deducting personal tax)
Y
Conservative
Moderate
Aggressive
Your risk profile indicates that you can only tolerate
Your investment objective as is skewed towards
generating income as well as some capital growth.
Page 2 of 11
Shariah-
authorized di
been given to me.
I have decided to purchase another unlisted capital market product that is not recommended by the
authorized distributor.
WARNING: THE RECOMMENDATION IS MADE BASED ON INFORMATION OBTAINED FROM THE SUITABILITY ASSESSMENT.
INVESTORS ARE ADVISED TO EXERCISE JUDGEMENT IN MAKING AN INFORMED DECISION IN RELATION TO THE UNLISTED CAPITAL
MARKET PRODUCT.
Page 3 of 11
Individual
Joint
Kenanga Standalone Funds
Corporate
Kenanga AMP Plus Portfolio
This Form should not be circulated unless accompanied by the relevant Prospectus(es) / Information Memorandum(s). Investor(s) should read and
understand the contents of the relevant Prospectus(es) / Information Memorandum(s), before completing his form. This form is to be completed by investors
who wish to invest in any standalone funds or subscribe to the Actively Managed Portfolio Service for which Kenanga Investors Berhad (herein known as ‘the
Manager’) acts as the Manager and the Portfolio Manager. Please complete in BLOCK LETTERS and in BLACK INK ONLY.
rights issue
PLEASE TICK IF YOU CONSENT TO RECEIVE COMMUNICATIONS AND/OR INFORMATION FROM KIB RELATING TO YOUR INVESTMENT VIA EMAIL.
NOTICES DELIVERED VIA EMAIL TO APPLICANT ARE DEEMED SENT AND RECEIVED ON THE DATE SUCH EMAIL IS SENT.
Page 4 of 11
**The investments are subject to
the above entry fees, as disclosed
in the Prospectus(es) and / or
Information Memorandum(s)
KENANGA AMP PLUS SERVICE
8.2 (e) AMP
Investment Amount (RM)
Entry
Fees (%)
Investment Amount (RM)
Entry
Fees (%)
Investment Amount (RM)
Entry
Fees (%)
Investment Amount (RM)
Entry
Fees (%)
Investment Amount (RM)
Entry
Fees (%)
Investment Amount (RM)
Entry
Fees (%)
Investment Amount (RM)
Entry
Fees (%)
Investment Amount (RM)
Entry
Fees (%)
Kenanga Income Plus
8.2 (f) AMP
Kenanga Managed Growth
8.2 (g) AMP
Kenanga Shariah Balanced
8.2 (h) AMP
Kenanga Diversified
Pay out by Cheque (above RM250)
Please make cheque / bank draft / money order / telegraphic transfer payable to ‘KENANGA INVESTORS BERHAD’. Please include bank charges for outstation cheque. If there
is any discrepancy between the figures from EPF and the amount stated in the investment form, the Manager shall take the amount received from EPF as the final amount.
*Cheque /
Bank Draft Amount
(inclusive of bank charges)
Page 5 of 11

If you redeem your units
by the same UTMC, it is likely that you may not have
Investor’s Confirmation
I/We confirm that the UTC has explained all the points above to me/us.
Registered as UTC of UMTC/IUTA/CUTA
(delete where not applicable)
Page 6 of 11
Please read these notes before completing the Account Opening & Investment Form as you
are bound by them. You should read and understand the contents of the relevant Product
Highlights Sheet, Master Prospectus, Prospectus, Supplementary Prospectus (if any),
Information Memorandum, Deed and Supplementary Deed (if any), (which shall be made
available upon request) before investing in the fund. Please check that the adviser servicing
you has a valid authorization and registration card. Pursuant to S.232(2) of the CMSA, this
application form should not be circulated unless accompanied by the Prospectus.
For retail unit trust funds, kindly refer to the relevant Prospectus(es).
For wholesale funds, kindly refer to the relevant Information Memorandum(s).
Kenanga AMP Plus Portfolio
Initial
-Up
Individual
•
-
•
•
•
•
-
•
and shall be held harmless against any loss arising as a result of or in connection with any delay
•
•
•
1965
•
•
•
•
•
•
•
•
•
The Manager shall act in good faith and use the highest standard of skill and care and
•
•
•
•
•
managing the fund and / or portfolio.
•
• A suitability assessment needs not be conducted where:
indirectly out of or in connection with the Account Opening & Investment Form or in connection
with the Manager accepting, relying on or failing to act on any instructions given by or on behalf
of the Applicant due to the willful default or negligence of the Manager.
The Applicant hereby warrants that all monies as may be paid to the Manager from time to time
shall come from a legitimate (and not illegal) source.
th
Should you require more information, please contact Investor Services, Kenanga Investors
Berhad, Suite 12.02, 12th Floor, Kenanga International, Jalan Sultan Ismail, 50250 Kuala
Lumpur, Malaysia. Tel No. 1-800-88-3737 or email us at [email protected] or
[email protected]
Distribution (if any), will be automatically reinvested into the fund in the portfolio at the
Page 7 of 11
PART 5 - TERMS AND CONDITIONS FOR Kenanga AMP PLUS SERVICE
I / We understand that I / we have chosen Kenanga Actively Managed Portfolios (AMP) Plus; a service which comprises of underlying Kenanga Investors Berhad unit trust funds managed by the Manager.
I / We hereby consent to give the Manager full discretionary rights to actively manage my / our investment in Kenanga AMP Plus portfolios which includes but not limited to portfolio allocation,
switching between funds and re-balancing of the portfolio among the funds managed by the Manager. The Manager will undertake to manage the portfolio to the best of its ability.
I / We hereby consent to give the Manager the right to charge and deduct the AMP service fee from the portfolio underlying unit trust funds to be determined by the Manager. The fee is
computed daily on my / our portfolios value and payable monthly or is payable:
I / We understand that notwithstanding the above, I / we have the right to fully or partially redeem my / our investment from Kenanga AMP Plus. However, I / we agree to waive the following
rights to my / our portfolio:
I / We understand and acknowledge that by choosing Kenanga AMP Plus, the Manager does not guarantee any returns on the investments in the portfolio or any returns from any individual
fund which are in Kenanga AMP Plus. My / Our capital in the portfolio is also not guaranteed or protected. The Manager will not be held responsible for any under performance of the portfolio
and the portfolio’s underlying unit trust funds. The performance of the portfolio and funds may go down as well as up and past performance of the portfolio and funds are not an indication of
their future performance.
I / We understand that investing in Kenanga AMP Plus involves investment risk. The risk profile of the individual underlying unit trust funds in Kenanga AMP Plus is disclosed in the respective
prospectus(es).
I / We understand and acknowledge that I am / we are entitled to switch between my / our AMP Plus portfolios. The first portfolio switching / account transfer is free for each calendar year, and
any subsequent switching / transfer within the year will incur RM100 per transaction. Portfolio switching / account transfer is not applicable to EPF Member’s Investment Scheme.
I / We will receive a half yearly statement which will be sent via my / our preferred mode of communication. I / We understand that I / we can view my / our daily updated portfolio details including
my / our transactions and rebalancing activities performed on my / our behalf by the Manager through my / our e-account which is accessible through www.kenangainvestors.com.my.
I / We agree that the Manager reserves the right to decide and make any changes to the Terms and Conditions including termination of the discretionary active portfolio management of
Kenanga AMP Plus.
I / We undertake to indemnify and hold the Manager, its employees and advisers harmless against all cost, expenses, losses, claims and demands incurred arising from my / our decision to
invest in Kenanga AMP Plus.
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I am / we are not an undischarged bankrupt nor has any petition for bankruptcy been filed against me / us.
I / We undertake to provide the Manager with all information as it may be required for the purpose of and in connection with completing the Account Opening & Investment Form, including but
not limited to my / our information on financial position, condition, or prospect.
I / We acknowledge that I / we shall keep the Manager informed of any change of my / our particulars as stated in this Account Opening & Investment Form and / or of any material facts that will,
directly or indirectly, affect my / our financial position(s), condition(s) or prospect(s).
I / We undertake to provide such information and documents as the Manager may reasonably require for the purpose of due diligence / enhanced due diligence as required under the AntiMoney Laundering and Anti-Terrorism Financing Act 2001 (”AMLA”).
I / We hereby declare and acknowledge that I / we have sole legal and proprietary right over all monies accompanying this application.
I / We hereby agree to indemnify the Manager against all actions, suits, proceedings, claims, damages and losses which may be suffered by the Manager as a result of any inaccuracy of the
declarations herein.
In the absence of written explicit instructions, I / we agree that any distribution will be automatically paid out. However, distributions amounting RM250 and below will be reinvested into further
units in the relevant fund.
In the absence of written explicit instructions, I / we acknowledge that instruction must be given by both of us.
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I / We undertake that I am / we are aware of tthe fees and charges that I / we will incur directly or indirectly when investing in the fund(s).
I / We undertake to provide the Manager with all the information as it may be required for the purpose of and in connection with completing the Account Opening & Investment Form, including
but not limited to, the Corporation and its group of companies’ information on financial position, condition, operations, business or prospect.
I / We acknowledge that I / we shall keep the Manager informed of any change of the information stated in this Account Opening & Investment Form and / or any material facts that will directly
or indirectly affect the Corporation and its group of companies’ financial position, condition, operation, business or prospect.
I / We hereby declare and acknowledge that I / we
Manager.
ORGANIZATION(S)
Principal
Applicant to
sign
Both Applicants
to sign
Either
Applicant to
sign
More than 2
signatories
Page 8 of 11
Submitted
Remarks
Board’s Resolution to authorize the investment
Is there a HIT from the name screening using Thomson Reuters?
summarized
Page 9 of 11
Kenanga Investors Berhad (353563-P)
Suite 12.02, 12th Floor,
Kenanga International,
Jalan Sultan Ismail,
50250 Kuala Lumpur,
Malaysia.
Website: http://www.kenangainvestors.com.my
Email: [email protected]
Toll Free Line: 1-800-88-3737
Page 10 of 11
Others
which have been given to me.
authorized
Page 11 of 11
This First Supplemental Replacement Master Prospectus is dated 1 November 2013
and is valid until 10 July 2014 and is supplemental to the Replacement Master
Prospectus dated 11 July 2013. It should be read in conjunction with the said
Replacement Master Prospectus.
FIRST SUPPLEMENTAL REPLACEMENT MASTER PROSPECTUS
Incorporating 11 Funds:
•
Kenanga OneAnswerTM Investment Funds which was constituted on 16 April
2004 and consists of:
Kenanga Blue Chip Fund
Kenanga Growth Opportunities Fund
Kenanga Shariah Growth Opportunities Fund
Kenanga Ekuiti Islam Fund
Kenanga Managed Growth Fund
Kenanga Diversified Fund
Kenanga Shariah Balanced Fund
Kenanga Income Plus Fund
Kenanga Bon Islam Fund
•
Kenanga Cash Plus Fund (constituted on 29 August 2006)
•
Kenanga i-Enhanced Cash Fund (constituted on 4 July 2007)
Manager:
Kenanga Investors Berhad (353563-P)
Trustee:
CIMB Commerce Trustee Berhad (313031-A)
INVESTORS ARE ADVISED TO READ AND UNDERSTAND THE CONTENTS OF
THIS FIRST SUPPLEMENTAL REPLACEMENT MASTER PROSPECTUS DATED
1 NOVEMBER 2013. IF IN DOUBT, PLEASE CONSULT A PROFESSIONAL
ADVISER.
This First Supplemental Replacement Master Prospectus is dated 1 November 2013
and is valid until 10 July 2014 and is supplemental to the Replacement Master
Prospectus dated 11 July 2013. It should be read in conjunction with the said
Replacement Master Prospectus.
RESPONSIBILITY STATEMENTS AND STATEMENTS OF DISCLAIMER
This First Supplemental Replacement Master Prospectus has been reviewed and approved by the
directors of Kenanga Investors 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, there are no false or misleading statements, or omission of other facts
which would make any statement in this First Supplemental Replacement Master Prospectus false or
misleading.
The Securities Commission Malaysia has authorized the Funds and a copy of this First Supplemental
Replacement Master Prospectus has been registered with the Securities Commission Malaysia.
The authorization, and the registration of this First Supplemental Replacement Master Prospectus,
should not be taken to indicate that the Securities Commission Malaysia recommends the Funds or
assumes responsibility for the correctness of any statement made or opinion or report expressed in
this First Supplemental Replacement Master Prospectus and the Replacement Master Prospectus.
The Securities Commission Malaysia is not liable for any non-disclosure on the part of Kenanga
Investors Berhad, the management company responsible for the Funds, and takes no responsibility
for the contents in this First Supplemental Replacement Master Prospectus and the Replacement
Master Prospectus. The Securities Commission Malaysia makes no representation on the accuracy or
completeness of this First Supplemental Replacement Master Prospectus and the Replacement
Master Prospectus, and expressly disclaims any liability whatsoever arising from, or in reliance upon,
the whole or any part of its contents.
INVESTORS SHOULD RELY ON THEIR OWN EVALUATION TO ASSESS THE MERITS AND
RISKS OF THE INVESTMENT. IN CONSIDERING THE INVESTMENT, INVESTORS WHO ARE IN
DOUBT ON THE ACTION TO BE TAKEN SHOULD CONSULT THEIR PROFESSIONAL
ADVISERS IMMEDIATELY.
Additional Statement
This First Supplemental Replacement Master Prospectus is not intended to and will not be issued and
distributed in any country or jurisdiction other than 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 offer or invitation to subscribe or purchase Units of any of the Funds to
which this First Supplemental Replacement Master Prospectus relates may be made in any Foreign
Jurisdiction or under any circumstances where such action is unauthorized.
No Units of the Funds will be issued or sold on the basis of this First Supplemental Replacement
Master Prospectus (to be read in conjunction with the Replacement Master Prospectus) after 10 July
2014.
Investors are advised to note that recourse for false or misleading statements or acts made in
connection with this First Supplemental Replacement Master Prospectus is directly available through
sections 248, 249 and 357 of the Capital Markets and Services Act 2007.
The Kenanga Shariah Growth Opportunities Fund, Kenanga Ekuiti Islam Fund, Kenanga Shariah
Balanced Fund, Kenanga Bon Islam Fund and Kenanga i-Enhanced Cash Fund have been certified
as being Shariah compliant by the Shariah adviser appointed for the Funds.
i
This First Supplemental Replacement Master Prospectus is dated 1 November 2013
and is valid until 10 July 2014 and is supplemental to the Replacement Master
Prospectus dated 11 July 2013. It should be read in conjunction with the said
Replacement Master Prospectus.
Unless otherwise provided in this First Supplemental Replacement Master Prospectus, all the
capitalized terms used herein shall have the same meanings as ascribed to them in the
Replacement Master Prospectus dated 11 July 2013 and expires on 10 July 2014.
EXPLANATORY NOTE:
This First Supplemental Replacement Master Prospectus dated 1 November 2013 has been issued to
inform investors that Kenanga Islamic Investors Berhad is appointed as the external fund manager
effective from 1 November 2013 for Kenanga Shariah Growth Opportunities Fund, Kenanga
Ekuiti Islam Fund, Kenanga Shariah Balanced Fund, Kenanga Bon Islam Fund and Kenanga iEnhanced Cash Fund.
Below are the amendments to the Replacement Master Prospectus dated 11 July 2013 to reflect the
above changes.
A. CHANGES IN THE GLOSSARY OF TERMS
AMENDMENTS – SECTION 1 – GLOSSARY OF TERMS (Page 7)
The definition of “External Fund Manager” is hereby added to be read as follows:
External Fund Manager
Kenanga Islamic Investors Berhad (Company No. 451957-D) - for
Kenanga Shariah Growth Opportunities Fund, Kenanga Ekuiti Islam
Fund, Kenanga Shariah Balanced Fund, Kenanga Bon Islam Fund
and Kenanga i-Enhanced Cash Fund.
B. CHANGES IN THE CORPORATE DIRECTORY
AMENDMENTS – SECTION 2 – CORPORATE DIRECTORY (Page 10)
The following corporate information of Kenanga Islamic Investors Berhad under a new heading
“External Fund Manager” is hereby added to be read as follows:
External Fund Manager
(Kenanga Shariah Growth Opportunities Fund, Kenanga Ekuiti Islam Fund, Kenanga
Shariah Balanced Fund, Kenanga Bon Islam Fund and Kenanga i-Enhanced Cash Fund)
Kenanga Islamic Investors Berhad (Company No. 451957-D)
Registered Office:
8th Floor, Kenanga International,
Jalan Sultan Ismail,
50250 Kuala Lumpur, Malaysia
Tel: 03-2162 1490
Fax: 03-2161 4990
Business Office:
Suite 12.03, 12th Floor,
Kenanga International,
Jalan Sultan Ismail,
50250 Kuala Lumpur, Malaysia
Tel: 03-2057 3688
Fax: 03-2161 8805
C. CHANGES IN THE KEY DATA OF THE FUNDS
AMENDMENTS – SUB-SECTION 3.4 – OTHER INFORMATION (Page 22)
The following table is hereby added to be read as follows:
Further Information in relation to Kenanga Shariah Growth Opportunities Fund, Kenanga
Ekuiti Islam Fund, Kenanga Shariah Balanced Fund, Kenanga Bon Islam Fund and
1
This First Supplemental Replacement Master Prospectus is dated 1 November 2013
and is valid until 10 July 2014 and is supplemental to the Replacement Master
Prospectus dated 11 July 2013. It should be read in conjunction with the said
Replacement Master Prospectus.
Kenanga i-Enhanced Cash Fund
External Fund Manager
Kenanga Islamic Investors Berhad
D. CHANGES IN THE DESIGNATED FUND MANAGER
(1) AMENDMENTS – SUB-SECTION 10.8 – INVESTMENT MANAGEMENT TEAM (Page 77)
The sentence on the designated fund manager for the Funds found under the “Lee Sook Yee,
Chief Investment Officer” section is hereby deleted and is replaced by the following:
(The designated fund manager for the Kenanga Blue Chip Fund, Kenanga Growth Opportunities
Fund, Kenanga Managed Growth Fund, Kenanga Diversified Fund, Kenanga Income Plus Fund
and Kenanga Cash Plus Fund)
(2) AMENDMENTS – SUB-SECTION 10.8 – INVESTMENT MANAGEMENT TEAM (Page 78)
The following information on the designated fund managers is hereby added to be read as
follows:
As the Management Company has delegated the fund management function for Kenanga Shariah
Growth Opportunities Fund, Kenanga Ekuiti Islam Fund, Kenanga Shariah Balanced Fund,
Kenanga Bon Islam Fund and Kenanga i-Enhanced Cash Fund to Kenanga Islamic Investors
Berhad, the designated fund managers for the aforesaid Funds are as follows:
(a) Kenanga Shariah Growth Opportunities Fund, Kenanga Ekuiti Islam Fund, Kenanga Shariah
Balanced Fund, Kenanga Bon Islam Fund – Chung Yee Wah; and
(b) Kenanga i-Enhanced Cash Fund – Mohd Ezani Bin Abu Yazid.
E. CHANGES IN THE MANAGEMENT COMPANY
AMENDMENTS – SECTION 10 – THE MANAGEMENT COMPANY (Page 78)
The following corporate information of Kenanga Islamic Investors Berhad under the heading
“External Fund Manager” is hereby added to be read as follows:
10.9
THE EXTERNAL FUND MANAGER
(Kenanga Shariah Growth Opportunities Fund, Kenanga Ekuiti Islam Fund,
Kenanga Shariah Balanced Fund, Kenanga Bon Islam Fund and Kenanga iEnhanced Cash Fund)
Effective Date: 1 November 2013
Kenanga Islamic Investors Berhad
Background Information
Kenanga Islamic Investors Berhad (“KIIB”) was incorporated as a public company in 1997
under the Companies Act 1965 as Kenanga Unit Trust Berhad (“KUTB”) to solely conduct
a unit trust business in Malaysia.
In 2009, pursuant to the rationalization and re-organization of the asset and unit trust
management businesses of the K & N Kenanga Holdings Berhad group of companies
(“Kenanga Group”), the business and assets of Kenanga Asset Management Sdn Bhd
(“KAM”) a fund management company within the Kenanga Group was transferred to
2
This First Supplemental Replacement Master Prospectus is dated 1 November 2013
and is valid until 10 July 2014 and is supplemental to the Replacement Master
Prospectus dated 11 July 2013. It should be read in conjunction with the said
Replacement Master Prospectus.
KUTB. KUTB subsequently applied for and was licensed as a fund manager under the
Capital Markets and Services Act 2007. KUTB was renamed as Kenanga Fund
Management Berhad (“KFMB”) following the completion of the rationalization and reorganization exercise.
In November 2010, KFMB transferred its business and employees to Kenanga Investors
Berhad (“KIB”) and subsequently changed its name to Kenanga Islamic Investors Berhad
in August 2011.
Pursuant to the Kenanga Group business plans for KIIB to become a fully operational
Islamic fund management business, KIIB applied for and received its Islamic fund
management licence from the Securities Commission in April 2012. KIIB is the Kenanga
Group’s asset management arm focused on exclusively providing Shariah-compliant
investment products to both domestic and regional markets.
Effective 1 April 2013, KIIB is a wholly-owned subsidiary of KIB. As at 31 August 2013,
the total asset under management of KIIB stands at approximately RM386 million.
Below are the profiles of the key personnel of the KIIB.
Aznul Kamal Khalid
Chief Executive Officer/ Executive Director
Aznul Khalid joined KIIB as the Chief Executive Officer in late February 2012. He was in
Franklin Templeton Asset Management (Malaysia) Sdn Bhd from September 2010 as
Head of Business Development, until February 2012. At Franklin Templeton, he was
responsible for the Malaysian institutional client base as well as institutional sales in
Malaysia. He was also responsible to tap institutional opportunities that may arise from
both the conventional and Shariah-compliant mandate platforms. In addition to that, he
was responsible for building relationships with distributors (bank and non-bank) for the
launching of wholesale funds as well as spearheading future retail strategies and sales
when Franklin Templeton decides to embark on their retail business.
Prior to joining Franklin Templeton, Mr. Khalid was also Head of Institutional Business
with two different local fund management houses in Malaysia, RHB Investment
Management Sdn Bhd and CIMB-Principal Asset Management Berhad, over 5 and 3
years respectively. Prior to that, he had been with the Malaysian regulators, the SC for
almost 5 years, and before that he started his career in the industry with a local
stockbroking house as a research analyst for 3 years. Mr. Khalid earned a B.Sc in finance
from Fresno State, California, USA and an M.B.A. in international business from
University of Westminster in London. He holds a fund manager's representative license
issued by the SC since 2002 which is a requirement to perform the business function that
represents the company.
Chung Yee Wah
Chief Investment Officer
Yee Wah joined KIIB as the Chief Investment Officer in February 2012. He brings with
him more than 18 years of experience in the investment field, managing domestic and
regional equity portfolios. Yee Wah started off as an investment analyst in 1993 and had
worked in UMBC Securities Sdn Bhd and James Capel (Malaysia) Sdn Bhd (later known
as HSBC Securities (Malaysia) Sdn Bhd) before he joined Abu Dhabi Investment
Authority as a fund manager in 1998. He returned to Malaysia in 2007 and joined
AmInvestment Bank Berhad as an Associate Director for institutional sales (equity). Yee
Wah then moved on to UOB-OSK Asset Management Sdn Bhd as an Associate Director
to manage institutional funds before he joined KIIB. Yee Wah earned a BBA from the
National University of Malaysia with a major in finance.
3
This First Supplemental Replacement Master Prospectus is dated 1 November 2013
and is valid until 10 July 2014 and is supplemental to the Replacement Master
Prospectus dated 11 July 2013. It should be read in conjunction with the said
Replacement Master Prospectus.
Mohd Ezani Bin Abu Yazid
Senior Portfolio Manager
Mohd Ezani bin Abu Yazid joined Kenanga Investors Berhad in March 2011 and was
transferred to KIIB in July 2012. He has eighteen (18) years of experience in the
disciplines of treasury & money market management. In 1993, he began his career in the
Treasury Department of Bank Utama (M) Berhad and in 1996, joined Bolton Finance
Berhad (later known as Alliance Finance Berhad). He moved into the funds management
industry in 2001 when he joined BHLB Asset Management Sdn Bhd (“BAM”). BAM later
merged with SBB Asset Management (later known as SBB Investment Management Sdn
Bhd) and Ezani retained his position until he joined RHB Investment Management Sdn
Bhd (“RHBIM”) in May 2006. During his tenure in RHBIM he managed wholesale and
retail cash funds. His other wide experience includes central dealing of equity, fixed
income and foreign exchange. He has a Diploma in AgriBusiness from University Putra
Malaysia. Ezani is a holder of the Capital Markets Services Representative’s Licence.
Roles and Duties of the External Fund Manager or KIIB
The Management Company has delegated the investment management functions for the
Funds to KIIB, an Islamic fund management company. KIIB shall manage, realize, invest,
reinvest or deal with the Funds according to the respective objectives of the Funds and
requirements of the Shariah. KIIB will at all times act with bona fides and in the best
interests and for the benefit of the Funds and shall ensure that all investment transactions
will be effected in accordance with the respective objectives of the Funds and
requirements of the Shariah.
F. CHANGES IN THE RELATED–PARTY TRANSACTIONS AND CONFLICT OF INTEREST
(1) AMENDMENTS – SUB-SECTION 14.1 – RELATED–PARTY TRANSACTIONS (Page 86)
The third paragraph of item 14.1 is hereby deleted in its entirety and replaced with the following:
As at 31 August 2013, none of the Management Company’s director or substantial shareholder
has direct or indirect interest in other corporations carrying a similar business, except as
otherwise disclosed below:
Kenanga Islamic Investors Berhad is a wholly-owned subsidiary of Kenanga Investors Berhad.
Direct and Indirect Interest in other Corporations Carrying on Similar Business as the Manager
Our appointment of Kenanga Islamic Investors Berhad as the External Fund Manager for
Kenanga Shariah Growth Opportunities Fund, Kenanga Ekuiti Islam Fund, Kenanga Shariah
Balanced Fund, Kenanga Bon Islam Fund and Kenanga i-Enhanced Cash Fund shall take effect
from 1 November 2013.
(2) AMENDMENTS – SUB-SECTION 14.2 – POLICY ON CONFLICT OF INTEREST (Page 86)
The third paragraph of item 14.2 under the sub-heading “Management Company” is hereby
deleted in its entirety.
4