Terms and Conditions

Unit Trust Loan Financing Disclosure

Investing in a Unit Trust Fund with borrowed money is more risky than investing with your own savings. You should assess if loan financing is suitable for you in light of your objectives, attitude to risk and financial circumstances. You should be aware of the risk, which would include the following:

i) The higher the margin of financing (that is, the amount of money you borrow for every ringgit of your own money which you put in as deposit or down payment), the greater the loss or gain on your investment.

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

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

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

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

TERMS AND CONDITIONS

1. INVESTMENT

1.1 AHAM Asset Management Berhad (hereinafter referred to as "we", "our", "us", or "AHAM Capital") do not accept physical cash as payment for investments. All monies due and payable by you to us shall be made with clear funds, any cheques issued by you must be honoured when presented and shall be from your own bank account. We do not accept funds from third parties for your investments and may refund such sum that has been transferred to us to the payer and henceforth the application for investment may fail.

1.2 If any application made by you is rejected for whatever reason, whether in part or whole, any monies paid or remaining balance thereof will be returned (without interest or return) within 30 days from the date of such application and any costs or expenses incurred thereof shall be borne solely by you.

1.3 Without prejudice to the generality of the foregoing, all our employees and sales consultants are prohibited from receiving from any parties monies for investment (whether by way of cash or cheque or any other instrument) made out in favour of the employees and / or sales consultants, for their onwards transmission to us. In the event you do hand over such physical cash, or cheque or any other instrument made to the favour of the employee and / or sales consultant, such employee and / or sales consultant shall for the purposes of such transmission of monies to us be your agent and not ours and we shall not be liable for any loss whatsoever occasioned to you or any other person as a result of you handing over such monies to them. We are under no obligation to accept payments for investments via our employees and / or consultants or any third party and may in our sole discretion reject such payments.

1.4 In the absence of any instructions to the contrary or as allowed under the Deed of the relevant fund, you hereby authorise us to automatically re-invest any distributions of dividends.

1.5 Please take note that only a “Sophisticated Investor” may invest in a Wholesale Fund. To check your eligibility as a “Sophisticated Investor”, you may refer to the Capital Markets and Services Act 2007.

1.6 The First Applicant agrees to apply his/her latest risk tolerance profile maintained with AHAM for all investment transaction applications and to notify AHAM Capital immediately if there is any change of information that may change his/her risk tolerance profile.

2. REPURCHASE

2.1 When you submit an application to redeem units, we will repurchase units from you upon receipt of a valid instruction, at the price (NAV) of the fund as determined in accordance with the terms of the Deed of the relevant fund.

2.2 If you have invested in any funds via the EPF Member Investment Scheme, any payment of redemption proceeds shall be made payable to EPF only.

2.3 Please take note that payment of redemption proceeds can only be made out in your favour, and any request to pay to a third party is strictly prohibited. We will pay to your bank account as advised by you, subject to the prior verification of the bank account. We may request for any form of validation for verification prior to making such payments to you and we will not be held responsible for any delay or loss incurred due to incorrect bank account number provided by you for payment of repurchase proceeds.

2.4 In the event your request for redemption results in your holding being less than the minimum balance of units required, we reserve the right to redeem all the units held by you.

3. SWITCHING

3.1 You may switch investments from any one fund to another fund managed by the same investment manager (unless otherwise stated by the Deed for the relevant fund). Any distribution instruction earlier given for that fund switched out will apply to the additional units and remain unchanged. If the switching is made to a new fund / investment, the net amount switched must meet the minimum requirement of the new fund’s initial investment amount.

3.2 In the event any request for switching results in your holding being less than the minimum balance of units required, we reserve the right to fully switch all the units held by you.

3.3 Any switching fee as disclosed in the relevant Prospectus, Information Memorandum, Disclosure Document, and any supplemental and / or replacement thereto (if any) shall be charged to and be borne by you.

4. COOLING-OFF

4.1 Cooling-off is only available to you if you are investing into any unit trust fund or private retirement scheme managed by the investment manager for the first time.

4.2 A cooling-off request must be made within the prescribed period as stated in the Prospectus, Information Memorandum, Disclosure Document, and any supplemental and / or replacement thereto (if any) of the relevant fund.

4.3 Cooling-off requests is currently not available on our Online Portals. You are required to contact our Customer Service to submit your request for cooling-off.

5. FEES, CHARGES AND EXPENSES

5.1 You shall be responsible for the payment of any charges, fees, costs, expenses, taxes (if any) and other liabilities properly payable or incurred by us and in holding or executing transaction in respect of any of the units.

5.2 We will not be liable to pay any interest to you for any monies we held for you for any reason whatsoever.

6. RIGHTS OF AHAM CAPITAL

6.1 We reserve the right to accept or reject any instruction or application made by you in whole or in part without assigning any reason in respect thereof and without providing any compensation to you.

6.2 Notwithstanding anything contained herein, we shall be at the liberty to disregard or refuse to process any of the instructions given or applications submitted by you if the processing of such instructions or applications would be in contravention of any laws or regulatory requirements whether or not having the force of law and / or would expose us to any liability.

6.3 Save and except for our gross negligence or wilful default, you hereby agree to indemnify and keep indemnified us, our directors, officers, shareholders, and employees against any direct and / or indirect cost, actions, claims, expenses, fees, liabilities, penalties, fines, suits, losses and / or damages suffered and / or incurred by us arising out of and / or in connection with the instructions given herein, any payments made by you and any inaccuracies in the information and declarations provided by you.

6.4 In the event we become aware that you are no longer eligible to be a unit holder in any funds offered by us, we shall be deemed to have received a transaction request by you to exit you from the funds that you are ineligible to be a unit holder of.

7. RELATIONSHIP

7.1 For investments in Shariah funds, the account is based on the contract of agency under the Shariah principle of Wakalah. We will act in our capacity as an agent (“Wakil”) for and on your behalf (“Muwakkil”) pursuant to our appointment under the Terms.

8. INVESTMENT INTO UNIT TRUSTS DISTRIBUTED BY AHAM CAPITAL AS INSTITUTIONAL UTS ADVISER (IUTA) AND APPOINTMENT OF NOMINEE TO HOLD UNIT TRUSTS (UNITS)

8.1 As an IUTA and for ease of operations, we require the services of a nominee (“Nominee”) to effect your transactions and also to keep in custody Units for and on your behalf.

8.2 Where you invest in a unit trust fund distributed by us as an IUTA, you hereby agree to appoint us to hold and act for and on your behalf in relation to those Units subject to the Terms. All transactions with respect to the Units will be effected by the Nominee on your behalf with the relevant representative, agent, adviser or management company of the Units in accordance with the restrictions or limitations set by the respective UTMC, the relevant prospectus and deed of the respective funds and the laws, rules, regulations, guidelines and practices of the unit trusts industry.

8.3 You agree that where you invest in a unit trust fund distributed by us as an IUTA:-

the Units shall be held by the Nominee as the registered holder for and on your behalf;
the Nominee shall not recognise any trust or equity in respect of the Units or any part thereof; and
the Nominee shall be a bare custodian and not a trustee in all matters relating to this arrangement and / or the Units.

8.4 The Nominee shall have no duty or responsibility as regards attendance at meetings or voting in respect of any of the Units or as regards any subscription, conversion or other rights in respect thereof or as regards any merger, consolidation, reorganisation, receivership, bankruptcy or insolvency proceedings, compromise or arrangement in connection with the Units, nor shall the Nominee be under any duty to investigate or participate therein or take any affirmative action in connection therewith except in accordance with your written instructions and upon such conditions, indemnity and provision for expenses as the Nominee may require.