trustworthy - Manulife Insurance Berhad

For your future TM 

Master Prospectus 

Manulife Investment - China Value Fund 

Manulife Investment - Global Resources Fund 

Manulife Investment - India Equity Fund 

strong 

reliable 

trustworthy 

forward-thinking 

MANAGER: Manulife Unit Trusts Berhad (834424-U) 

TRUSTEE: HSBC (MALAYSIA) TRUSTEE BERHAD (1281-T) 

constitution date of the funds 

MAnulife investment - ChinA Value Fund Deed dated 27 October 2009 

MAnulife investment - global resources fund deed dated 27 October 2009 

Manulife investment - india equity fund deed dated 27 October 2009 

INVESTORS ARE ADVISED TO READ AND UNDERSTAND THE CONTENTS OF THE MASTER 

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 37. 

This Master Prospectus for the above Funds is dated 7 January 2012 and 

expires on 6 January 2013.

Message from the Ceo 

3 

Dear Investor, 

Thank you for considering making an investment in our feeder funds namely Manulife Investment 

- China Value Fund, Manulife Investment - India Equity Fund and Manulife Investment - Global 

Resources Fund. 

At Manulife Unit Trusts Berhad, we offer a comprehensive range of feeder funds for investors’ 

diversified investment appetites in achieving their long term financial goals. We pride ourselves at 

Manulife on developing forward-thinking financial solutions to meet our customer’s needs. 

Please take your time to refer to the “Key Data” chapter in this Master Prospectus. You can find 

details such as investment objectives, key strategies, investors’ profile, risks parameters, fees and 

charges. 

Please note that there are risks involved when investing in the Manulife Investment - China Value 

Fund, Manulife Investment - India Equity Fund and Manulife Investment - Global Resources Fund. 

The general risks associated to all Funds and specific risks which are explicit to each Fund are set 

out in this Master Prospectus. For further details, please refer to the “Risk Factors” chapter of this 

Master Prospectus. 

Each Fund imposes a Sales Charge and fee when you buy or redeem Units. An annual Management 

Fee and a Trustee Fee will also be chargeable to the Funds. 

If you have any queries about the information in this Master Prospectus or would like to know 

more about the Funds, please feel free to contact our customer service at Tel. No.: 03-2719 9228; 

Fax No.: 03-2719 9119 or e-mail my_utservice@manulife.com. Alternatively, you may contact our 

authorised distributors listed in Chapter 23 of this Master Prospectus. 

We look forward to being of service to you. 

Best wishes, 

  

Edward Ooi Tee Hee 

Chief Executive Officer/Executive Director

4 

Responsibility Statements 

This Master Prospectus has been reviewed and approved by the directors of Manulife Unit Trusts 

Berhad and they collectively and individually accept full responsibility for the accuracy of the 

information. Having made all reasonable inquiries, 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 Master Prospectus false or misleading. 

Statements of Disclaimer 

The Securities Commission Malaysia has approved the issue of, offer for subscription or purchase, 

or issue an invitation to subscribe for or purchase units of the unit trust funds and a copy of this 

Master Prospectus has been registered with the Securities Commission Malaysia. 

The approval, and registration of this 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 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 of this 

Master Prospectus. The Securities Commission Malaysia makes no representation on the accuracy 

or completeness of this 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.

Additional Statement 

5 

No Units will be issued or sold based on this Master Prospectus later than one year after the date 

of this Master Prospectus. 

Investors are advised to note that recourse for false or misleading statements or acts made in 

connection with this Master Prospectus is directly available through Sections 248, 249 and 357 of 

the Capital Markets and Services Act 2007. 

This Master Prospectus does not constitute an offer or solicitation by anyone in any jurisdiction 

in which such offer or solicitation is not authorized or to any person to whom it is unlawful to 

make such offer or solicitation. The distribution of this Master Prospectus and the offering of the 

Units in certain countries may be restricted by law. It is the responsibility of persons wishing to 

make applications for Units pursuant to this Master Prospectus to inform themselves of, and to 

comply with, any such restrictions together with any applicable exchange control regulations and 

applicable taxes in the countries of their citizenship, residence, ordinary residence or domicile. 

The Units have not been, and will not be, registered under the United States Securities Act of 

1933, as amended (the “1933 Act”) or under the securities laws of any state or other political 

subdivision of the United States of America and may not be offered, sold, transferred or delivered, 

directly or indirectly, in the United States of America, its territories or possessions, any state of the 

United States of America, or the District of Columbia (the “United States”). Neither the United 

States Securities and Exchange Commission nor any state or other regulatory agency in the United 

States has passed upon the Units or the adequacy or accuracy of this Master Prospectus. The 

Manager is not and will not be registered under the United States Investment Company Act of 

1940, as amended (the “1940 Act”). The Units may not be resold except pursuant to an exemption 

from (such as in accordance with Rule 144A, if available), or in a transaction not subject to, the 

registration requirements of the 1933 Act. 

The offering of the Units is being made outside the United States in accordance with Regulation 

S under the 1933 Act. The Manager has not offered, sold or delivered and will not offer, sell or 

deliver directly or indirectly any Units in the United States or to or for the account or benefit of any 

U.S. Person (as defined in Regulation S). 

The Units have not been, and will not be, qualified for sale under the securities laws of Canada 

or any province or territory of Canada and may not be offered, or sold, directly or indirectly, in 

Canada, or to any resident thereof.

6 

CONTENTS 

SectioN 

Page 

1 Corporate Directory 12 

2 Glossary 15 

3 Key Data Section 19 

3.1 Key Data Section of MICVF 19 

3.2 Key Data Section of MIGRF 25 

3.3 Key Data Section of MIIEF 31 

4 Risk Factors 37 

4.1 General Risks of investing in Unit Trusts 37 

4.2 Specific Risks of the Funds 38 

4.3 Specific Risks for Target Funds 39 

5 Fund Details 52 

5.1 Manulife Investment - China Value Fund 52 

5.1.1 Investment Objective 52 

5.1.2 Benchmark 52 

5.1.3 Investment Policy and Strategy 52 

5.1.4 Asset Allocation 52 

5.1.5 Permitted Investments and Investment Restrictions and Limits 53 

5.1.6 Collective Investment Scheme 53 

5.1.7 Liquid Assets 53 

5.1.8 Investors’ Profile 54 

5.2 Manulife Investment - Global Resources Fund 54 








5.2.8 Investors’ Profile 56

7 

SectioN 

Page 

5 Fund Details (cont’d) 

5.3 Manulife Investment - India Equity Fund 57 








5.3.8 Investors’ Profile 59 

5.4 Information of Manulife Global Fund 59 

5.4.1 About Manulife Global Fund 59 

5.4.2 Information of MGF-CVF Class A 60 

5.4.3 Information of MGF-GRF Share Class AA 61 

5.4.4 Information of MGF-INDF Share Class AA 63 

5.4.5 Investment Restriction of MGF-CVF, MGF-GRF and MGF-INDF 64 

5.4.6 Performance Return 71 

5.4.7 Fee for investing in the Target Funds 72 

6 Additional Information In Relation To The Fund 74 

6.1 Borrowings and Securities Lending 74 

6.2 Valuation Bases For the Fund’s Investments 74 

6.3 Policy in respect of the Valuation Point 75 

7 Performance Of The Fund 76 

7.1 Performance of Manulife Investment - China Value Fund 76 

7.1.1 Average Annual Total Returns of this Fund 76 

7.1.2 Annual Total Return of this Fund 76 

7.1.3 Distribution Record 77 

7.1.4 Portfolio Turnover Ratio (PTR) of the Fund 77 


7.2 Performance of Manulife Investment - Global Resources Fund 78 





7.2.5 Asset Allocation 79

8 

CONTENTS 

SectioN 

Page 

7 Performance Of The Fund (Cont’d) 

7.3 Performance of Manulife Investment - India Equity Fund 80 






8 Historical Financial Highlights Of The Fund 82 

8.1 Manulife Investment - China Value Fund 82 

8.1.1 Statement of Comprehensive Income for the financial year 

ended 31 October 2011 82 

8.1.2 Statement of Financial Position as at 31 October 2011 83 

8.2 Manulife Investment - Global Resouces Fund 84 




8.3 Manulife Investment - India Equity Fund 86 




9 Fees And Charges 88 

9.1 Charges Directly Incurred 88 

9.2 Fees And Expenses Indirectly Incurred 89 

9.3 Policy on Stockbroking Rebates and Soft Commissions 91 

9.4 Total Annual Expenses Incurred by a Fund in the Preceding 

financial Year 92 

10 Transaction Information 94 

10.1 Computation of NAV and NAV per Unit 94 

10.2 Unit Pricing 95 

10.3 Incorrect Pricing 95 

10.4 Calculation of Selling Price 96 

10.5 Calculation of Redemption Price 97

9 

SectioN 

Page 

11 Transaction Details 98 

11.1 Information on Purchase of the Units 98 

11.2 Payment Methods 99 

11.3 Processing of Purchase/Redemption/Switching Request 100 

11.4 Making Additional or Regular Investment 101 

11.5 Information on Redemption of the Units 101 

11.6 Cooling-Off Period 102 

11.7 Transfer of Units 103 

11.8 Switching Facility 103 

11.9 Unclaimed Moneys 104 

11.10 Income Distribution and Reinvestment Policy 104 

11.11 Anti-Money Laundering Policies and Procedures 104 

12 Salient Terms of the Deed 106 

12.1 Rights and Liabilities of Unit Holders 106 

12.1.1 Rights of Unit Holders 106 

12.1.2 Liabilities of Unit Holders 106 

12.2 Provisions regarding Unit Holders Meetings 106 

12.2.1 Quorum Required for Convening a Unit Holders Meeting 106 

12.2.2 Unit Holders meeting convened by Unit Holders 107 

12.2.3 Unit Holders meeting convened by Manager or Trustee 107 

12.3 Termination of the Fund 108 

12.3.1 Circumstances that may lead to the termination of a Fund 108 

12.3.2 Procedure for the Termination of a Fund 108 

12.4 The Maximum Fees and Charges that may be imposed by the 

Manager and the Steps to be taken by the Manager to increase 

such Fees and Charges 110 

12.4.1 Maximum Rate of Direct Fees and Charges allowable by the Deed 110 

12.4.2 Maximum Rate of Indirect Fees and Charges allowable by the Deed 110 

12.4.3 Procedures to be taken to increase the Direct and Indirect Fees 

and Charges 110 

12.5 Other Expenses Permitted under the Deed 112 

12.6 Circumstances that may Lead Towards the Retirement, Removal 

or Replacement of the Manager 113 

12.7 Powers of the Manager to Remove the Trustee 114 

12.8 Retirement or Removal or Replacement of the Trustee 114 

12.9 Power of the Trustee to Remove or Replace the Manager 115

10 

CONTENTS 

SectioN 

Page 

13 Client Communication 116 

14 The Management Company 117 

14.1 Background 117 

14.2 Role of the Manager 117 

14.3 Financial Position 117 

14.4 Role of Directors 117 

14.5 Board of Directors of the Manager 118 

14.6 Role of the Investment Committee 120 

14.7 The Investment Committee Members 120 

14.8 Key Personnel of the Manager 121 

14.9 Material Litigation 121 

14.10 Manager’s Delegate 122 

15 The Investment Manager 124 

15.1 Background 124 

15.2 Key Personnel of the Investment Manager 124 

15.3 Roles, Duties and Functions of the Investment Manager 125 

15.4 Material Litigation 126 

16 The Trustee 127 

16.1 Background Information 127 

16.2 Financial Position 127 

16.3 Experiences in Trustee Business 127 

16.4 Board of Directors 128 

16.5 Profile of Key Personnel 128 

16.6 Duties and Responsibilities of the Trustee 130 

16.7 Trustee’s Statement of Responsibility 130 

16.8 Trustee’s Disclosure of Material Litigation 130 

16.9 Trustee’s Delegates 130 

16.10 Anti-money laundering provisions 131 

16.11 Statement of Disclaimer 131 

17 Related Party Transactions/Conflict of Interest 132 

18 Statement of Consent 134

11 

SectioN 

Page 

19 Tax Adviser’s Letter on the Taxation of The Funds 

and Unit Holders 135 

20 Documents Available for Inspection 140 

21 Unit Trust Loan Financing Risk Disclosure Statement 141 

22 Directors’ Declaration 142 

23 Directory of Manulife Regional Support Centres 143

12 

section 1 

CORPORATE DIRECTORY 

The Manager 

Manulife Unit Trusts Berhad (834424-U) 

Registered Address 

12 th Floor, Menara Manulife 

No. 6, Jalan Gelenggang 

Damansara Heights, 50490 Kuala Lumpur 

Tel. No. : 03-2719 9228 

Fax No. : 03-2094 0573 

Website : www.manulife.com.my 

Business Address 




Tel. No. : 03-2719 9228 

Fax No. : 03-2094 7654 


The Manager’s Delegate 

(Fund Valuation Function) 

HSBC (Malaysia) Trustee Berhad (1281-T) 

Registered Address & Business 

Address 

13 th Floor, Bangunan HSBC 

South Tower 

No.2, Leboh Ampang, 50100 Kuala Lumpur 

Tel. No. : 03-2075 7800 

Fax No. : 03-2026 1273 


(Compliance, Internal Audit, Human 

Resource, Finance, Corporate Secretarial 

and Legal) 

Manulife Holdings Berhad (24851-H) 


(Product Development and Marketing) 

Manulife Insurance Berhad (814942-M) 


Address 



Damansara Heights 

50490 Kuala Lumpur 

Tel. No. : 03-2719 9228 

Fax No. : 03-2094 0573 



(Information Technology Services) 

Manulife Technology and Services Sdn 

Bhd (666350-U) 






Tel. No. : 03-2719 9228 

Fax No. : 03-2094 0573 







Tel. No. : 03-2719 9228 

Fax No. : 03-2094 7654 

Website. : www.manulife.com.my 


Address 




Tel. No. : 03-2719 9228 

Fax No. : 03-2094 0573 

Website : www.manulife.com.my

13 

Board of Directors of the Manager 

Datuk Seri Panglima Mohd Annuar bin Zaini 

(Independent Director) 

Edward Ooi Tee Hee (Chief Executive Officer/ 

Executive Director) 

Datuk Ismail Bin Haji Ahmad (Independent 

Director) 

Michael Chan Yui Lung (Non-Independent 

Director) 

David Wong Tai Wai (Independent Director) 

Christopher Franz Bendl (Independent Director) 

Ahmad Riza Basir (Independent Director) 

Investment Committee Members 

Tan Sri Dato’ Mohd Sheriff Bin Mohd Kassim 

(Independent) 

Datuk Ismail bin Haji Ahmad (Independent) 

Michael Chan Yui Lung 

Leo Ng Ho Lai 

Company Secretaries 

Jasbender Kaur a/p Mehar Singh 

(LS 0009264) 

No. 11, Jalan 22/42 

46300 Petaling Jaya 

Selangor Darul Ehsan 

Ling Chui Shee (MAICSA 7051434) 

No. 56, Jalan Impian 4 

Taman Impian Indah 

Bukit Jalil, 57000 

Kuala Lumpur 

Investment Manager 

Manulife Asset Management 

(Malaysia) Sdn. Bhd. (817945-K) 






Tel. No. : 03-2719 9228 

Fax No. : 03-2094 0573 






Tel. No. : 03-2719 9228 

Fax No. : 03-2093 9466 

Investment Managers of the Target 

Funds 

Manulife Asset Management (Hong Kong) 

Limited 

Suite 4701, 47 th Floor 

Manulife Plaza 

The Lee Gardens, 33, Hysan Avenue 

Causeway Bay, Hong Kong SAR 

(Investment Manager of MGF-GRF and 

MGF-INDF) 

Value Partners Limited 

9 th Floor, Nexxus Building 

41 Connaught Road Central 

Hong Kong SAR 

(Investment Manager of MGF-CVF) 

Amundi Asset Management S.A. 

90 boulevard Pasteur 

75730 Paris cedex 15 

France 

(Sub-Investment Manager of MGF-GRF) 

General Adviser and Distributor of 

the Target Funds 

Manulife Asset Management International 

Holdings Limited (formerly known as 

Manulife Asset Management (Asia) 

Limited) 

Manulife Place 

Bishop’s Court Hill 

Collymore Rock, St. Michael 

Barbados

14 

section 1 

CORPORATE DIRECTORY 

The Trustee 

HSBC (Malaysia) Trustee Berhad (1281-T) 


Address 

13 th Floor, Bangunan HSBC, South Tower 

No 2, Leboh Ampang 


Tel. No. : 03-2075 7800 

Fax No. : 03-2026 1273 

The Trustee’s Delegate (Foreign) 

Hsbc Institutional Trust Services (Asia) 

Limited 


Address 

6 th Floor, Tower One, HSBC Centre 

1 Sham Mong Road 

Kowloon, Hong Kong 

Tel No. : 852-2533 6333 

Fax No. : 852-2869 6120 

The Trustee’s Delegate (Local) 

The HongKong And Shanghai Banking 

Corporation Limited (as Custodian) and 

assets held through Hsbc Nominees 

(Tempatan) Sdn Bhd (258854-D) 


Address 

No. 2, Lebuh Ampang 


Tel No. : 03-2070 0744 

Fax No. : 03-2072 9787 

Banker 

Malayan Banking Berhad (3813-K) 

Ground Floor, Block C 

Kompleks Pejabat Damansara 

Jalan Semantan, Damansara Heights 


Tel. No. :1300-88-7788 

Auditors 

PricewaterhouseCoopers (AF 1146) 

Level 10, 1 Sentral 

Jalan Travers, Kuala Lumpur Sentral 

P O Box 10192 


Tel. No. : 03-2173 1188 

Fax No. : 03-2173 1288 

Tax Adviser 

Deloitte KassimChan Taxation Services 

Sdn Bhd (Co. No. 36421-T) 

Level 16, Uptown 1, Damansara Uptown 

1, Jalan SS21/58 

47400 Petaling Jaya, Selangor 

Tel. No. : 03-7725 1888, 7712 5100 

Fax No. : 03-7725 7768, 7725 7769 

Solicitors 

Messrs. Naqiz & Partners 

No. 42 A, Lorong Dungun 



Tel. No. : 03-2081 7888 

Fax No. : 03-2081 7886 

Others 

Federation of Investment Managers 

Malaysia 

19-07-3, 7 th Floor, PNB Damansara 

19, Lorong Dungun, Damansara Heights 


Tel. No. : 03-2093 2600 

Fax No. : 03-2093 2700 

Email : info@fimm.com.my 

Website : www.fimm.com.my

section 2 

GLOSSARY 

15 

Act 

Amundi 

Approved Distributor 

Bursa Malaysia 

Business Day 

Deed (s) 

Means the Capital Markets and Services Act 2007 (“CMSA 2007”) as 

originally enacted and amended or modified from time to time. 

Means Amundi Asset Management S.A., the sub-investment 

manager for MGF-GRF. 

Means any relevant persons (including but not limited to IUTAs and/ 

or UTCs) as may be approved by the SC (if necessary) or any other 

regulatory body and appointed by the Manager from time to time, 

who are responsible for selling Units. 

Means Bursa Malaysia Securities Berhad (635998-W). 

Means a day on which: 

(i) Bursa Malaysia is open for trading and banks in Kuala Lumpur 

are open for business; and 

(ii) a day which is a Dealing Day as defined in the prevailing 

prospectus of MGF. 

Means collectively or individually, as the case may be, the following 

deeds which are entered into between the Manager and the Trustee 

including any supplemental and variation thereto: 

(i) 

(ii) 

Manulife Investment - China Value Fund 

deed dated 27 October 2009; 

Manulife Investment - Global Resources Fund 

deed dated 27 October 2009; 

(iii) Manulife Investment - India Equity Fund 

deed dated 27 October 2009. 

Investment Manager(s) 

of the Target Funds 

Means collectively or individually, as the case may be, the 

following investment manager of the Target Funds: 

(i) 

(ii) 

Manulife Asset Management (Hong Kong) Limited for MGF- 

GRF and MGF-INDF; 

Value Partners Limited for MGF-CVF; 

(iii) Amundi, as sub- investment manager for MGF-GRF.

16 section 2 

GLOSSARY 

FiMM 

Forward Pricing 

Fund(s) 

Means the Federation of Investment Managers Malaysia. 

Means the NAV per Unit of the Fund based on the next valuation 

point after a purchase or redemption request is received by the 

Manager. 

Means collectively or individually, as the case may be, the following 

funds: 

(i) 

(ii) 

Manulife Investment - China Value Fund (“MICVF”); 

Manulife Investment - Global Resources Fund (“MIGRF”); 

(iii) Manulife Investment - India Equity Fund (“MIIEF”). 

Guidelines 


IUTAs 

Latest Practicable Date 

(LPD) 

Long Term 

MAMHK 

Management 

Expenses Ratio (MER) 

Manager/Management 

Company 

MGF 

MGF-CVF 

Means the Guidelines on Unit Trust Funds issued by the SC and as 

amended, substituted or replaced from time to time. 

Means Manulife Asset Management (Malaysia) Sdn. Bhd. (817945-K). 

Means Institutional Unit Trust Advisers. 

As at 31 October 2010 being the latest practicable date for the 

purposes of ascertaining certain information deemed relevant as at 

the latest practicable date in this Master Prospectus. 

Means a period of 5 years and above. 

Means Manulife Asset Management (Hong Kong) Limited. 

Means the ratio of the total management expenses of the Fund to 

the average Fund’s value calculated on a daily basis. 

Means Manulife Unit Trusts Berhad (834424-U). 

Means Manulife Global Fund, an entity incorporated in the Grand 

Duchy of Luxembourg (“Luxembourg”) as an open-ended investment 

company. Please refer to Section 5.4.1 for further details. 

Means Manulife Global Fund – China Value Fund. Please refer to 

Section 5.4.2 for further details.

17 

MGF-GRF 

MGF-INDF 

MHB 

Net Asset Value/NAV 

NAV per Unit 

PRC 

Portfolio Turnover 

Ratio (PTR) 

Redemption Charge 

Redemption Price per 

Unit 

Regulated Market(s) 

RM 

Renminbi 

SC 

Selling Price per Unit 

Means Manulife Global Fund – Global Resources Fund. Please refer 

to Section 5.4.3 for further details. 

Means Manulife Global Fund – India Equity Fund. Please refer to 

Section 5.4.4 for further details. 

Means Manulife Holdings Berhad (24851-H). 

Means the Net Asset Value of the Fund which is determined by 

deducting the value of all the Fund’s liabilities from the value of 

all the Fund’s assets, at the valuation point. For the purpose of 

computing the annual management fee and annual trustee fee, the 

NAV of the Fund should be inclusive of the annual management fee 

and the annual trustee fee for the relevant day. 

Means the NAV of the Fund divided by the total number of Units in 

circulation at the valuation point. 

People’s Republic of China. 

Means the ratio of the average sum of acquisitions and 

disposals of the Fund for the financial period to the average net asset 

value of the Fund calculated on a daily basis. 

Means a fee imposed pursuant to a redemption request. 

Means the NAV per Unit payable to a Unit Holder for a 

unit in the Fund pursuant to a redemption request. The redemption 

price shall be exclusive of the Redemption Charge. 

Means a regulated market which operates regularly and is recognised 

and open to the public. 

Means Ringgit Malaysia, the lawful currency of Malaysia. 

Means the lawful currency of PRC. 

Means the Securities Commission of Malaysia. 

Means the NAV per Unit payable by an applicant for a Unit pursuant 

to a successful application for Units; for the avoidance of doubt, the 

selling price of Units does not include any sales charge which may be 

imposed.

18 

section 2 

GLOSSARY 

Share(s) 

Share class(es) 

Single Pricing Regime 

Target Fund(s) 

Trustee 

Unit or Units 

Unit Holders 

USD 

UTCs 

VP 

Means fully paid shares of no par value comprised within the separate 

funds belonging to MGF representing the capital of MGF. 

Means a series of Shares within MGF which may differ from other 

share classes in respect of its charging structure, dividend policy, 

hedging policy, investment policy or other specific features as may 

be described herein. 

Means the NAV per Unit based on Forward Pricing and, is the 

Redemption Price per Unit or the Selling Price, as the case may be. 

Means the fund or funds into which each feeder fund invests in. 

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

Means a measurement of the right or interest of a Unit Holder in the 

Fund and means a Unit (including a fraction of a Unit) of the Fund. 

Means the person registered as the holder of a Unit or Units including 

persons jointly registered. 

Means US Dollar, the lawful currency of the United States of America. 

Means Unit Trust Consultants. 

Means Value Partners Limited.

section 3 

KEY DATA SECTION 

19 

THIS SECTION IS ONLY A SUMMARY OF THE SALIENT INFORMATION ABOUT THE FUNDS. 

INVESTORS SHOULD READ AND UNDERSTAND THE WHOLE MASTER PROSPECTUS 

BEFORE MAKING ANY INVESTMENT DECISIONS. YOU ARE ADVISED TO READ AND 

UNDERSTAND THE CONTENTS OF THIS MASTER PROSPECTUS AND IF NECESSARY, 

CONSULT YOUR PROFESSIONAL ADVISERS. 

3.1 KEY DATA SECTION OF MICVF 

Fund Information 

The Fund 

Fund Category 

Fund Type 

Investment 

Objective 

Benchmark 

Investment Policy 

and Principal 

Investment 

Asset Allocation 

A 

The Fund 

MICVF 

Feeder Fund 

Growth 

the Fund invests in the MGF-CVF which aims to 

achieve Long Term capital growth through investment, 

primarily* in under-valued companies with Long 

Term potential and substantial business interest in 

the Greater China Region (which includes PRC, Hong 

Kong and Taiwan) which are listed or traded on stock 

exchanges of Shanghai, Shenzhen, Hong Kong, Taipei 

or other exchanges. 

Note*: primarily means mainly 70% invested. 

FTSE All World Greater China Index 

Source : Bloomberg L.P 

The Fund will invest principally into MGF-CVF 

managed by VP. MGF-CVF is a collective investment 

constituted in Luxembourg. MGF-CVF is denominated 

in USD and was established on 1 April 1998. 

Its indicative asset allocation is as follows: 

at least 95% of NAV 

- Investments in the units of MGF-CVF Share Class A. 

2%-5% of NAV 

- Investments in money market instruments 

(including fixed income securities of not more than 

365 days) and deposits with financial institutions 

for liquidity purposes. 

Page 

– 

– 

– 

52 

52 

52 

52

20 section 3 

KEY DATA 


Approved Fund 

Size 

Financial Year End 

The Fund 

100 million Units 

31 October 

Page 

– 

– 

Commencement Date 7 January 2010 

Investors’ Profile 

This Fund is suitable for investors who: 

(i) wish to participate in the potential of the Greater 

China markets; and 

(ii) are willing to accept high risk in their investments in 

order to achieve Long Term capital growth. 

54 

Principal Risks • Fund Manager Risk 

• Market Risk 

• Credit/Default Risk 

• Currency Risk 

• Country Risk 

• Liquidity Risk 

• Risk of Non-Compliance 

Principal Risks of • Investment Risks 

the MGF-CVF • Umbrella Structure of the MGF and Cross-Liability 

Risk 

• International Investments Risk 

• Unlisted Securities Risk 

• Emerging Markets Risks 

• Political and Regulatory Risks 

• Natural Resources Sector Risk 

• Custodial, Clearance and Settlement Risk 

• Small-Cap Risks 

• Currency Risks 

• Liquidity and Volatility Risks 

• Rating of Investment Risk 

• Taxation Risk 

• Voluntary Liquidation and Early Termination Risk 

• Financial Derivative Instruments (FDI s) Risks 

• Management Risk 


• Credit Risk 


• Leverage Risk 

• Additional Risk Factors for MGF-CVF 

38 

38 

38 

39 

39 

39 

39 

39 

40 

40 

40 

41 

41 

42 

42 

43 

43 

43 

44 

44 

44 

45 

45 

45 

46 

46 

46 

46

21 


Income 

Distribution Policy 

The Fund 

the Fund endeavours to distribute income, if any, on an 

annual basis. 

unit Holders may choose to receive or reinvest any 

income distribution declared as follows: 

Page 

104 

(a) 

(b) 

income distribution will be reinvested into 

additional Units of the Fund. No sales charge will 

be imposed; or 

the income distribution will be credited directly 

into the Unit Holder’s bank account. 

Income distribution will be automatically reinvested if: 

(a) 

(b) 

no distribution choice is made on the Fund’s 

Master Application Form; or 

the income distribution amount is less than RM50 

or such amount as may be determined by the 

Manager from time to time. 

the income distribution to be reinvested into additional 

Units of the Fund is based on the NAV per Unit as at the 

1 st Business Day when Units are quoted ex-entitlement. 

Allotment of such Units shall be within 2 weeks 

thereafter. 

Fees and Charges 

This table describes the charges that you may directly incur when you 

buy or redeem Units of the Fund. 

Sales Charge Distribution Maximum Sales Charge** 

Channels* on the NAV per Unit of the Fund*** 

88 

Iuta 

utC 

up to 5.50% of the NAV per Unit 


T the Manager Up to 5.50% of the NAV per Unit 

* Investors may subscribe for Units via one or more of 

the distribution channels. 

** All sales charges will be rounded up to two (2) 

decimal places. 

*** Investors may negotiate for a lower sales charge.

22 section 3 

KEY DATA 


The Fund 

Page 

Differing sales charges may be levied depending on the 

distribution channels and the distributor within each 

distribution channel, subject to the maximum sales 

charge stipulated above. This is due to the different 

levels of services provided by each distribution channel 

and / or the size of the investment undertaken. 

Switching Fee 

Switching out of the Fund to other funds managed by 

the Manager will not incur any switching fee. 

89 

When the investor switches from the Fund to another 

fund managed by the Manager, switching will be based 

on the NAV per unit of the other funds. 

Transfer Fee 


RM5 per transfer upon receipt of a transfer request 

from the investor. 

There are no Redemption Charges involved. 

89 

88 

This table describes the fees that you may indirectly incur when 

you invest in the Fund. 

Annual Management 

Fee 

Annual Trustee Fee 

Fund Expenses 

Up to 1.80% per annum of the NAV of the Fund. 

this fee is calculated and accrued daily and payable 

monthly by the Fund to the Management Company. 

0.08% per annum of the NAV of the Fund, subject to 

a minimum fee of RM18,000 per annum (excluding 

foreign custodian fees and charges). This fee is 

calculated and accrued daily and payable monthly by 

the Fund to the Trustee. 

Only expenses that are directly related to the Fund can 

be charged to the Fund. Examples of relevant expenses 

are audit fee and tax agent’s fee. 

89 

90 

90

23 


The Fund 

Page 

Transaction Details 

Minimum Investment 

Minimum Additional 

Investment 

Minimum Redemption 

of Units 

Frequency of 

Redemption 


Balance 

Cooling-off Period 

Switching of Units 

RM1,000.00 or such other amount as the Manager may 

from time to time decide. 

RM100 or such other amount as the Manager or the 

approved Distributor may from time to time decide. 

500 Units or such number of Units as the Manager may 


There is no restriction on the frequency of redemption. 

The minimum investment balance should be maintained 

at 500 Units or such number of Units as the Manager 

may from time to time decide. 

Six (6) Business Days from the date the Master 

Application Form is received and accepted by the 

Manager for the first time. 

a cooling-off period is only given to an investor who is 

investing with the Manager for the first time. However, 

corporations/institutions, staff of the Manager and 

person(s) registered to deal in unit trust of the Manager 

are not entitled to the cooling-off period. 

Since switching is treated as a withdrawal from one 

fund and an investment into another fund, when the 

investor switches from one fund to another fund, 

switching will be based on the NAV per unit of the 

other fund. 

98 

98 

101 

101 

101 

102 

103 

Please refer to Section 11.8 for details of the switching 

facility. 

Transfer of Units 

The minimum transfer is 500 Units. 

103

24 section 3 

KEY DATA 


Other Information 

The Manager 


The Fund 


Manulife Asset Management (Malaysia) Sdn. Bhd. (817945-K) 

Page 

117 

124 

Information on the Target Fund: Manulife Global Fund – 

Target Fund 

China Value Fund (MGF-CVF) 

Operator: Manulife Asset Management 

International Holdings Limited 

Investment 

manager of the 

T target Fund: Value Partners Limited 

Regulatory 

A authority: Luxembourg – Commission de 

Surveillance du Secteur Financier 

Country of Origin: Luxembourg 

D 

date of 

establishment of 

the Target Fund: 1 April 1998 

60 

The Trustee 

Deed (s) that 

govern the Fund 

Avenue for advice 

hsBC (Malaysia) Trustee Berhad (1281-T). 

Deed dated 27 October 2009 relating to the Fund 

entered into between the Manager and the Trustee. 

If you have any queries or require further information, 

please contact our customer service at Tel. No.: 03- 

2719 9228; Fax No.: 03-2719 9119 or email us at 

my_utservice@manulife.com. Alternatively, you may 

contact any of our distributors, which are listed in 

Section 23 of this Prospectus. 

127 

– 

There are fees and charges involved and investors are advised to consider 

them before investing in the Fund. 

Unit prices and distribution payable, if any, may go down as well as up. 

For information concerning certain risk factors which should be considered 

by prospective investors, see “Risk Factors” commencing on page 37. 

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

25 

3.2 KEY DATA SECTION OF MIGRF 


The Fund 

Fund Category 

Fund Type 

Investment Objective 

The Fund 

MIGRF 

Feeder Fund 

Growth 

The Fund invests in the MGF-GRF which aims to 

achieve Long Term capital growth mainly through 

equities and equity-related investments of companies 

involved in resources such as gas, oil, coffee, sugar and 

related industries globally which are listed on any stock 

exchange. 

Page 

– 

– 

– 

54 

Benchmark MSCI World Energy (1/3), MSCI World Materials (1/3) 

and FTSE Gold Mines (1/3). 

Source: Information of MSCI World Energy, MSCI World 

Materials and FTSE Gold Mines can be obtained from 

Bloomberg L.P. 

Information on the benchmark is available http://www. 

manulife.com.my 

54 

Investment Policy 

and Principal 

Investment Strategy 


A 

The Fund will invest principally into MGF-GRF managed 

by MAMHK which has in turn appointed Amundi to 

provide sub investment management services in 

respect of MGF-GRF. MGF-GRF is a collective 

investment scheme constituted in Luxembourg. MGF- 

GRF is denominated in USD and was established on 29 

January 2007. 



- Investments in the units of MGF-GRF Share Class 

AA. 

2%-5% of NAV 





54 

55

26 section 3 

KEY DATA 


Approved Fund 

Size 


The Fund 


31 October 

Page 

– 

– 




(i) wish to capitalise on the opportunities offered by 

the natural resources sectors; 

(ii) are willing to invest in diversified global market; and 

(iii) are willing to accept high risk in their investments in 

order to achieve Long Term capital growth 

56 









the MGF-GRF • Umbrella Structure of the MGF and Cross-Liability Risk 



















• Additional Risk Factors for MGF-GRF 

38 

38 

38 

39 

39 

39 

39 

39 

40 

40 

40 

41 

41 

42 

42 

43 

43 

43 

44 

44 

44 

45 

45 

45 

46 

46 

46 

46

27 


Income 


The Fund 


annual basis. 



Page 

104 

(a) income distribution will be reinvested into additional 

Units of the Fund. No Sales Charge will be imposed; or 

(b) the income distribution will be credited directly into 

the Unit Holder’s bank account. 


(a) 

(b) 










thereafter. 






88 

Iuta 

utC 









28 section 3 

KEY DATA 


Switching Fee 

The Fund 









Page 

89 



on the NAV per unit of the other funds. 

Transfer Fee 





89 

88 




Fee 


Fund Expenses 

Up to 1.80% per annum of the NAV of the Fund. This 

fee is calculated and accrued daily and payable monthly 

by the Fund to the Management Company. 









89 

90 

90 



RM1,000 or such other amount as the Manager may 


98

29 



Investment 


of Units 

Frequency of 

Redemption 


Balance 



The Fund 

RM100 or such amount as the Manager or the Approved 

distributor may from time to time decide. 



















other fund. 

Page 

98 

101 

101 

101 

102 

103 


facility. 



The Manager 


Manulife Unit Trusts Berhad (834424-U). 

103 

117 


Manulife Asset Management (Malaysia) Sdn. Bhd. 

(817945-K). 

124

30 

section 3 

KEY DATA 


The Fund 

Page 

Information on the Target Fund: Manulife Global Fund – Global 

Target Fund 

Resources Fund (MGF-GRF) 



Investment 


T target Fund: Manulife Asset Management (Hong 

Kong) Limited 

S 

sub-Investment 

manager: Amundi 

Regulatory 




D 

date of 


the Target Fund: 29 January 2007 

61 

The Trustee 

Deed (s) that govern 

the Fund 



Deed dated 27 October 2009 relating to the Fund 

entered into between the Manager and the Trustee. 







127 

– 




For information concerning certain risk factors which should be 

considered by prospective investors, see “Risk Factors” commencing on 

page 37. 

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

performance.

31 

3.3 KEY DATA SECTION OF MIIEF 


The Fund 

Fund Category 

Fund Type 

Investment Objective 

The Fund 

MIIEF 

Feeder Fund 

Growth 

The Fund invests in the MGF-INDF which aims to 

achieve Long Term capital growth through equities 

and equity-related investments of companies 

covering different sectors of the Indian economy and 

which are listed on stock exchanges in India or on any 

stock exchange. The remaining assets of the MGF- 

INDF may include convertible bonds, bonds, deposits 

and other investments. 

Page 

– 

– 

– 

57 

Benchmark Bombay Stock Exchange 100 Index (“BSE 100”) 

Source : Bloomberg L.P. 

57 

Investment Policy and 

Principal Investment 

Strategy 


A 

Approved Fund 

Size 


The Fund will invest principally into MGF-INDF managed 

by MAMHK. MGF-INDF is a collective investment 

scheme constituted in Luxembourg. MGF-INDF is 

denominated in USD and was established on 30 

November 2006. 



- Investments in the units of MGF-INDF Share Class 

AA. 

2%-5% of NAV 






31 October 

57 

57 

– 

–

32 

section 3 

KEY DATA 


The Fund 

Page 


– 



(i) seek an investment in the India market; and 

(ii) are willing to accept high risk in their investments in 

order to achieve Long Term capital growth. 

59 









the MGF-INDF • Umbrella Structure of the MGF and Cross-Liability 

Risk 



















• Additional Risk Factors for MGF-INDF 

38 

38 

38 

39 

39 

39 

39 

39 

40 

40 

40 

41 

41 

42 

42 

43 

43 

43 

44 

44 

44 

45 

45 

45 

46 

46 

46 

46

33 


Income 


The Fund 


annual basis. 



Page 

104 

(a) income distribution will be reinvested into additional 

Units of the Fund. No Sales Charge will be imposed; or 

(b) the income distribution will be credited directly into 

the Unit Holder’s bank account. 


(a) 

(b) 










thereafter. 






88 

Iuta 

utC 









34 

section 3 

KEY DATA 


The Fund 

Page 







Switching Fee 



89 



on the net asset value per unit of the other funds. 

Transfer Fee 





89 

88 




Fee 


Fund Expenses 

Up to 1.80% per annum of the NAV of the Fund. This 

fee is calculated and accrued daily and payable monthly 

by the Fund to the Management Company. 









89 

90 

90 



RM1,000 or such other amount as the Manager may 


98

35 



Investment 


of Units 

Frequency of 

Redemption 


Balance 



The Fund 

RM100 or such amount as the Manager or the 

approved Distributor may from time to time decide. 



















other fund. 

Page 

98 

101 

101 

101 

102 

103 


facility. 



The Manager 


Manulife Unit Trusts Berhad (834424-U). 

103 

117 


Manulife Asset Management (Malaysia) Sdn. Bhd. 

(817945-K). 

124

36 

section 3 

KEY DATA 


The Fund 

Page 

Information on the Target Fund: Manulife Global Fund – India Equity 

Target Fund 

Fund (MGF-INDF) 



Investment 


T target Fund: Manulife Asset Management (Hong 

Kong) Limited 

Regulatory 




D 

date of 


the Target Fund: 30 November 2006 

63 

The Trustee 

Deed (s) that govern 

the Fund 



Deed dated 27 October 2009 relating to the 

Fund entered into between the Manager and the 

Trustee. 







127 

– 




For information concerning certain risk factors which should be 

considered by prospective investors, see “Risk Factors” commencing on 

page 37. 

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

performance.

section 4 

risk factors 

37 

Prior to making an investment, prospective investors should consider the following risk factors in 

addition to the other information set out in the Master Prospectus: 

4.1 General Risks of investing in Unit Trusts 

Market Risk 

Market risk cannot be eliminated but may be reduced through diversification. There 

are economic-wide perils and uncertainties, which threaten all businesses and that 

is why investors are exposed to market uncertainties. Fluctuations in the market 

caused by uncertainties in the economy, political and social environment will affect 

the market price of unit trust funds. 

Specific Stock Risk 

The fund’s portfolio will comprise a spread of different investments, such as different 

share counters. The weak performance of individual counters invested can affect the 

overall NAV of the fund and therefore, the price of the overall unit. 

Fund Management Risk 

The selection of securities which make up the investments of the Fund is subjective 

and the securities selected may perform better or worse than the overall market. 

Poor management of the Fund may jeopardise this performance. 

Non-Compliance and Internal Control Risks 

Non-adherence with laws, rules, regulations, prescribed practices, investment 

mandate, internal policies and procedures may result in tarnished reputation and Unit 

Holders’ investment goals. In order to mitigate this risk, the Manager has stringent 

internal controls and ensures that compliance monitoring processes are undertaken. 

Liquidity Risk 

Liquidity risk is defined as the ease with which a security can be sold at or near its fair 

value depending on the volume traded on the market. If a unit trust fund has a large 

portfolio of securities that are less liquid or difficult to sell, the securities may be sold 

at a discount to its fair value, hence affecting the value of the unit trust fund. 

Country Risk 

The investment of the fund may be affected by risks specific to the country in which it 

invests. Such risks include changes in the country’s economic fundamentals, social and 

political stability, currency movements and foreign investment policies as well as other 

external factors. 

Political Risk 

Investments in the fund may be adversely affected by political instability as well as 

exchange controls, changes in taxation, foreign investment policies, restrictions on 

repatriation of investments and other restrictions and controls which may be imposed by 

the relevant authorities in the relevant countries.

38 

section 4 

risk factors 

Currency Risk 

Also known as foreign exchange risk. This risk is associated with investments that are 

predominantly made in foreign currencies. When foreign currencies fluctuate in an 

unfavourable movement against our local currency, the investments will face currency 

losses in addition to the capital gains/losses. This will lead to a lower NAV of the fund. 

Loan Financing Risk 

Investors should assess the inherent risk of investing with borrowed monies which 

includes risk of an increase in interest rates and/or risk of being unable to provide 

additional collateral should the unit prices fall. 

Performance Risk 

There is no guarantee in relation to the investment returns or on the distribution to unit 

holders. 

4.2 Specific Risks of the Funds 

Fund Manager Risk 

Since feeder funds invest into collective investment schemes managed by other foreign 

fund houses, the Manager and the Investment Manager have no control over the 

respective foreign fund houses’ investment techniques and knowledge, operational 

controls and management. In the event of mismanagement of the Target Funds by the 

foreign fund houses, the NAV of a fund which invests into the Target Funds would 

be affected negatively. Should such a situation arise, the Manager may invest in an 

alternative collective investment scheme that is consistent with the objective of the 

feeder fund. 

Market Risk 

Market risk arises due to economy-wide perils which affect businesses causing 

fluctuations in market values of the securities. As a result, investors are exposed to 

market uncertainties, and no matter how many securities are held, developments in the 

economic, political and social environment may have a positive or negative impact on 

the market price of the securities. Market risk cannot be eliminated but may be reduced 

through diversification. 

Credit/Default Risk 

Credit/default risk refers to the possibility that the issuer of securities/instruments or 

financial institutions with whom deposits are placed, will not be able to make timely 

payments of interest or principal repayment on the maturity date. This may lead to a 

default in the payment of principal and interest which will result in a fall of the price 

of the affected securities/ instruments and affect the recoverability of the deposits and 

ultimately reduce the value of a fund. Credit/default risk may be mitigated by performing 

continuous fundamental credit research and analysis to ascertain the creditworthiness of 

its issuer.

39 

Currency Risk 

Where a percentage of the value of a fund is invested in foreign currency or assets 

denominated in a foreign currency, the fund may be exposed to currency fluctuation 

risks as well as foreign exchange regulatory changes. Potential fluctuation in foreign 

exchange rates will affect the value of the fund’s foreign investments when converted 

into local currency and subsequently the value of unit holders’ investments. 

Country Risk 

The value of the assets of a fund may also be affected by the political and economic 

conditions of the country in which the investments are made. There is a risk of price 

fluctuations in foreign securities because of political, financial and economic events in 

foreign countries. If this occurs, there is a possibility that the unit price of the fund may be 

adversely affected. To mitigate this risk, the Manager selects collective investment schemes 

that can invest in securities that are spread across different markets and/or countries. 


This refers to the ease with which a security can be sold at or near its fair value depending 

on the volume traded on the market. Should a security become illiquid, it may be sold at a 

discount to its fair value, thus lowering the value of a fund’s investments and subsequently 

the value of unit holders’ investments. This risk is mitigated through appropriate asset 

allocation and diversification in the investments of the respective Funds. 

Risk of Non-Compliance 

This is the risk that the Manager will not follow the provisions set out in a deed or the 

relevant laws that govern a fund or its own internal procedures, or will act fraudulently 

or dishonestly which may result in the fund being mismanaged and may affect the unit 

holders’ investment. In order to mitigate this risk, the Manager imposes stringent internal 

controls and ensures that compliance monitoring processes are undertaken. 

4.3 Specific Risks For Target Funds 

Investment Risks 

The Target Fund is subject to substantial market fluctuations and to the risks inherent in 

all investments, and investors should be aware that value of Shares can go down as well 

as up. Investors may not get back their original investment. Investments in the Target 

Fund are designed to produce returns over the long term and are not suitable for shortterm 

speculation. 

An investment in the Target Fund involves risks. These risks may include or relate to, 

amongst other things, equity market, debt securities market, currency, interest rate, 

credit, liquidity and volatility as well as political risks and any combination of these and 

other risks. Investors are also reminded that risk factors may occur simultaneously and/ 

or may compound each other resulting in an unpredictable effect on the value of the 

Shares. No assurance can be given as to the effect that any combination of risk factors 

may have on the value of the Shares.

40 section 4 

risk factors 

The Target Fund which invest in equities are subject to the risks generally associated with 

equity investment, namely, the market value of the securities may go down as well as 

up. Factors affecting the securities valuations are numerous, including but are not limited 

to changes in business confidence, investment sentiments, business cycles, government 

and central bank policies, political environment, economic environment, business and 

social conditions in local and global marketplace. Securities exchanges normally have the 

right to suspend or limit trading in any securities traded on the relevant exchanges under 

certain circumstances. A suspension or limitation on trading means liquidation of such 

securities is impossible and the Target Fund investing in these securities may be subject 

to losses. 

Umbrella Structure of the MGF and Cross-Liability Risk 

The Target Fund will be responsible for paying its fees and expenses regardless of the 

level of its profitability. The MGF is an umbrella fund with segregated liability between 

Target Funds. Notwithstanding the foregoing, there can be no assurance that, should an 

action be brought against the MGF in the courts of another jurisdiction, the segregated 

nature of the Target Fund would necessarily be upheld. In addition, whether or not 

there is a cross-liability between the Target Funds, proceedings involving the Target 

Fund could involve the MGF as a whole which could potentially affect the operations 

of all the Target Funds. 

International Investments Risk 

Investment in securities issued by companies and governments of different nations 

involves certain risks. These risks include interest rate and exchange rate fluctuations, 

international and regional political and economic developments and the possible 

imposition of exchange controls or other local governmental laws or restrictions applicable 

to such investments. Investors in a Target Fund that concentrates its investments in the 

securities of a single country are fully exposed to that country’s economic and stock 

market cycles, which could increase both its risks and its potential rewards compared 

with a Target Fund invested in several countries or regions. 

Securities held with a local correspondent or clearing/settlement system or securities 

correspondent may not be as well protected as those held within Luxembourg. In 

particular, losses may be incurred as a consequence of the insolvency of the local 

correspondent or system. In some markets, the segregation or separate identification 

of a beneficial owner’s securities may not be possible or the practices of segregation or 

separate identification may differ from practices in more developed markets. 

Unlisted Securities Risk 

This risk relates to securities which are not listed on a securities exchange, such as shares 

in unlisted companies. The price of these investments may be volatile, and there may be 

delays and/or losses when selling unlisted securities due to liquidity constraints. In the 

Target Fund which is concentrated in the securities of a particular market, industry, group 

of industries, sector or asset class, this may contribute to additional share price volatility.

41 

Emerging Markets Risks 

Investors should note that portfolio of the Target Fund may be invested in what are 

commonly referred to as emerging economies or markets, where special risks (including 

higher stock price volatility, lower liquidity of stocks, political and social uncertainties and 

currency risks) may be substantially higher than the risks normally associated with the 

world’s mature economies or major stock markets. Further, certain emerging economies 

are exposed to the risks of high inflation and interest rates, large amount of external debt; 

and such factors may affect the overall economy stability. 

In respect of certain emerging economies or markets in which MGF may invest, MGF may 

be exposed to higher risks than in developed economies or markets, in particular for the acts 

or omissions of its service providers, agents, correspondents or delegates as a result of the 

protection against liquidation, bankruptcy or insolvency of such persons. Information collected 

and received from such service providers, agents, correspondents or delegates may be less 

reliable than similar information on agents, correspondents or delegates in more developed 

economies or markets where reporting standards and requirements may be more stringent. 

Investors should note that accounting, auditing and financial reporting standards, practices 

and disclosure requirements applicable to some companies in the emerging economies 

or markets in which the Target Fund may invest may differ from countries with more 

developed financial markets and less information may be available to investors, which may 

also be out of date. 

The value of the Target Fund’s assets may be affected by uncertainties such as changes 

in government policies, taxation legislation, currency repatriation restrictions and other 

developments in politics, law or regulations of the emerging economies or markets in 

which the Target Fund may invest and, in particular, by changes in legislation relating to 

the level of foreign ownership in the companies in these economies or markets, possible 

nationalisation of their industries, expropriation of assets and confiscatory taxation. 

Political and Regulatory Risks 

Changes to government policies or legislation in the markets in which the Target Fund may 

invest may adversely affect the political or economic stability of such markets. The laws 

and regulations of some of the markets through which the Target Fund may invest which 

affect foreign investment business continue to evolve in an unpredictable manner. There 

is a further risk that a government may prevent or limit the repatriation of foreign capital 

or the availability of legal redress through the courts. Although basic commercial laws are 

in place, they are often unclear or contradictory and subject to varying interpretation and 

may at any time be amended, modified, repealed or replaced in a manner adverse to the 

interests of the Target Fund. 

Investments in certain markets may also require the procurement of a substantial number 

of licences, regulatory consents, certificates and approvals, including licences for MGF, 

registration of relevant securities trading code(s) for the Target Fund to conduct securities 

transactions at the relevant securities trading centre(s) or markets and clearance certificates 

from tax authorities. The inability to obtain a particular licence, regulatory consent, 

certificate or approval could adversely affect MGF’s or the Target Fund’s operations.

42 section 4 

risk factors 

Natural Resources Sector Risk 

By focusing on the natural resources sector, some Target Funds carry much greater risks 

of adverse developments than a Target Fund that invests in a wider variety of industries. 

The securities of companies in the natural resources sector may experience more price 

volatility than securities of companies in other industries. Some of the commodities used 

as raw materials or produced by these companies are subject to broad price fluctuations as 

a result of industry wide supply and demand factors. As a result, companies in the natural 

resources sector often have limited pricing power over supplies or for the products that 

they sell which can affect their profitability. Concentration in the securities of companies 

with substantial natural resources assets will expose the Target Funds to price movements 

of natural resources to a greater extent than a more broadly diversified mutual fund. There 

is a risk that the Target Funds will perform poorly during and economic downturn or a 

slump in demand for natural resources. 

Custodial, Clearance and Settlement Risk 

The lack of adequate custodial, clearance and settlement systems in some emerging 

economies or markets may prevent either partial or total investment in such markets or 

may require the Target Fund to accept greater custodial, clearance and/or settlement risks in 

order to make any such investment. There are risks arising from the inadequacy of systems to 

ensure the transfer, evaluation, compensation and/or recording of securities, the procedure 

for registering securities, the custody of securities and liquidation of transactions. These risks 

do not occur as frequently in more developed markets or economies. 

Certain economies or markets present specific risks in the registration of assets, where 

registrars are not always subject to effective government supervision as well as in relation to 

the custody and safekeeping of securities. In some of these emerging economies or markets, 

difficulties could arise in relation to the registration of portfolio assets. In such circumstances, 

registration of shareholdings in favour of the Target Fund may become lost through default, 

negligence or refusal to recognise ownership, resulting in loss to the Target Fund. Investments 

may also sometimes be evidenced in the form of confirmation delivered by local registrars, 

which are neither subject to effective supervision nor always independent from issuers. The 

possibility of fraud, negligence or refusal to recognise ownership exists, which could result in 

the registration of an investment being completely lost. Investors should be aware that such 

Target Fund could be exposed to a loss arising from such registration problems. 

The clearance and settlement systems available to effect trades on emerging markets or 

economies may be significantly less developed than those in more developed markets or 

economies, which may result in delays and other material difficulties in settling trades and 

in registering transfers of securities. In certain economies or markets, there have been times 

when clearance and settlements have been unable to keep pace with the volume of securities 

transactions, making it difficult to conduct such transactions. Problems with clearance and 

settlement in these markets may affect the value and liquidity of the Target Fund. The inability 

of the Target Fund to make intended securities purchases due to clearance and settlement 

problems could cause the Target Fund to miss attractive investment opportunities. Inability 

to dispose of a portfolio security caused by such problems could result either in losses to the 

Target Fund due to subsequent declines in value of the portfolio security or, if the Target Fund 

has entered into a contract to sell the security, could result in potential liability to the purchaser.

43 

In addition, such economies or markets have different clearance and settlement procedures. 

The Target Fund will be exposed to credit risks of parties with or through whom it trades and 

will also bear the risk of settlement default. Market practice in certain emerging markets or 

economies, in which the Target Fund may invest, in relation to the clearance and settlement 

of securities transactions, may increase such risks. In certain securities markets, transactions 

may not be executed on a delivery versus payment / receive versus payment (DVP/RVP) basis 

and there may be a difference in settlement dates for cash and securities, which creates 

counterparty risk. 

Small-Cap Risks 

The Target Fund may invest in, but are not restricted to, the securities of small and medium 

sized companies in the relevant markets. This can involve greater risk than is customarily 

associated with investment in larger and more established companies. In particular, smaller 

companies often have limited product lines, markets or financial resources, with less 

research information available about the MGF, and their management may be dependent 

on a few key individuals. 

Currency Risks 

The Target Fund’s assets may be invested primarily in securities denominated in currencies 

other than its relevant currency of account and any income or realisation proceeds received 

by the Target Fund from these investments will be received in those currencies, some of 

which may fall in value against the currency of account. The Target Fund will compute their 

respective Net Asset Values and make any distributions in the relevant currency of account 

and there is, therefore, a currency exchange risk, which may affect the value of the Shares 

to the extent that the Target Fund make such investments, as a result of fluctuations in 

exchange rates between the currency of account of the relevant Target Fund and any other 

currency. In addition, foreign exchange control in any country may cause difficulties in the 

repatriation of Fund from such countries. 

Liquidity and Volatility Risks 

The trading volume on some of the markets through which the Target Fund may invest 

may be substantially less than that in the world’s leading stock markets. Accordingly, the 

accumulation and disposal of holdings in some investments may be time-consuming and 

may need to be conducted at unfavourable prices. Liquidity may also be less and volatility 

of prices greater than in the leading markets as a result of a high degree of concentration 

of market capitalisation and trading volume in a small number of companies. 

The Target Fund may invest in companies which are less well established in their early 

stages of development. These companies may often experience significant price volatility 

and potential lack of liquidity due to the low trading volume of their securities. The 

absence of adequate liquidity may also arise when a particular security is difficult to sell at 

the desired moment during particular periods or in particular market conditions. In a down 

market, higher-risk securities and derivatives could become harder to value or sell at a fair 

price. Liquidity risk tends to compound other risks. For example, if the Target Fund has a 

position in an illiquid asset, its limited ability to liquidate that position at short notice will 

compound its market risk.

44 section 4 

risk factors 

Where the Target Fund focuses on a specific geographic region, or market/industry sector, 

it may be subject to greater concentration risks than Target Fund which have broadly 

diversified investments. As such, investors should note that investments in any Target Fund 

are not bank deposits and are not insured or guaranteed by any deposit insurance or 

government agency. Prices may fall in value as rapidly as they may rise and it may not 

always be possible to dispose of such securities during such falls. 

Rating of Investment Risk 

There is no assurance that the ratings of each rating agency will continue to be calculated 

and published on the basis described in the Target Fund’s prospectus or that they will not 

be amended significantly. The past performance of a rating agency in rating an investment 

is not necessarily a guide to future performance. 

Taxation Risk 

The Target Fund may invest in securities that produce income that is subject to withholding 

and/or income tax. shareholders and potential investors are advised to consult their 

professional advisers concerning possible taxation or other consequences of subscribing, 

holding, selling, switching or otherwise disposing of Shares in the Target Fund. A summary 

of some of the Luxembourg tax consequences applicable to the MGF is set out in Section 

10.2.1 of the Target Fund’s prospectus. However shareholders and potential investors 

should note that the information contained in that section does not purport to deal with 

all of the tax consequences applicable to the MGF or all categories of investors, some of 

whom may be subject to special rules. 

Voluntary Liquidation and Early Termination Risk 

Although MGF was incorporated and established for an unlimited duration, the directors 

may at any time move to dissolve MGF at a general meeting in accordance with the 

Articles. If the corporate capital of MGF falls below two thirds of the minimum capital 

prescribed by the 2002 Law (currently 1,250,000 Euros or its equivalent in any other Major 

Currency), a resolution for the winding-up of MGF must be put to a general meeting. 

The directors may also resolve to voluntarily liquidate MGF or terminate the Target Fund 

by compulsory redemption of all outstanding Shares where its net asset value has fallen 

below US$5,000,000 and US$2,000,000 respectively, or the directors may require 

voluntary liquidation of MGF or early termination of the Target Fund (or a merger of 

the Target Fund with another target fund or Luxembourg UCITS) in the circumstances 

as discussed in Paragraph 7 of Appendix III (Compulsory Redemption) or Paragraph 8 of 

Appendix III (Termination/Merger of Target Fund) of MGF’s prospectus. In a case where 

there is compulsory redemption of all outstanding Shares, the redemption price payable 

will reflect the anticipated realisation and liquidation costs of liquidating MGF or the 

Target Fund, but without the application of any redemption charge. 

In the event of such voluntary liquidation or early termination, shareholders will be entitled 

to receive their pro rata interest in the assets of MGF or Target Fund (as the case may 

be). It is possible that at the time of any sale, realisation, disposal or distribution of these 

assets, certain investments held by MGF or Target Fund may be worth less than the initial 

cost of such investments, resulting in a substantial loss to the shareholders. Moreover, any 

organisational expenses with regard to MGF or Target Fund (as the case may be) that had

45 

not yet become fully amortised would be debited against MGF’s or Target Fund’s account 

at that time. 

Financial Derivative Instruments (FDIs) Risks 

The Target Fund, where stated in the relevant investment objectives and investment 

policies, may from time to time use FDIs such as warrants, futures, options, forwards 

and other derivative instruments or contracts for the purposes of meeting the investment 

objectives of the Target Fund or as part of the investment strategy and not merely for 

efficient portfolio management and hedging. 

This may lead to greater volatility in the NAV of the Target Fund. The volatility of securities 

is not constant. For example, changes in volatility may impact on the value of certain 

options, especially for out-of-the-money options. Volatility also tends to be mean reverting. 

When volatility reaches a very high level, it is more likely to decline than to rise. Conversely, 

when volatility reaches a very low level it is more likely to rise than to decline. 

The types and degrees of risk associated with such techniques and instruments vary 

depending upon the characteristics of the particular FDI and the assets of the Target Fund 

as a whole. Use of these instruments may entail investment exposures that are greater 

than their cost would suggest, meaning that a small investment in FDIs could have a large 

impact on the Target Fund’s performance. 

Participation in FDIs that may be held by the Target Fund to the extent permitted by applicable 

laws from time to time, whether for hedging purposes or otherwise, may expose the Target 

Fund to a higher degree of risk to which the Target Fund would not receive or be subject to, in 

the absence of using these instruments. Although the use of FDIs in general may be beneficial 

or advantageous, FDIs involve risks which differ from, and are, possibly, greater than the risks 

associated with traditional securities investments. The risks presented by FDIs include, but are 

not limited to, management risk, market risk, credit risk, liquidity risk and leverage risk. 

Management Risk 

Management risk represents the risk to the Target Fund that the investment results of 

the use of such instruments are reliant upon the success of the investment manager in 

making investment decisions in the context of prevailing market conditions. The Target 

Fund’s ability to use FDIs successfully depends on the investment manager’s ability to 

accurately predict movements in stock prices, interest rates, currency exchange rates 

or other economic factors and the availability of liquid markets. If the investment 

manager’s predictions are inaccurate, or if the FDIs do not work as anticipated, the 

Target Fund could suffer greater losses than if the Target Fund had not used such FDIs. 

Market Risk 

Market risk refers to the risk to the Target Fund from exposures to changes in the market 

value of its FDIs. There is a risk that the portfolio value of the Target Fund declines if the 

Target Fund is forced to unwind or close its FDIs positions under unfavourable conditions. 

In a down market, higher-risk securities and FDIs could become harder to value or the 

Target Fund may not be able to realize the true value of such securities.

46 section 4 

risk factors 

Credit Risk 

Credit risk represents the risk to the Target Fund arising from the possibility of the 

insolvency, bankruptcy or default of a counterparty with which the Target Fund trades, 

which could result in substantial losses or a loss of the entire value of the FDIs to that 

Target Fund. The Target Fund will be exposed to credit risk of the counterparties with 

which it trades particularly in relation to FDIs that are not traded on a recognised market. 

Such instruments are not afforded the same protection as may be available to participants 

trading on organised exchanges (such as the performance guarantee of an exchange 

clearing house), in the event that a counterparty or issuer of the relevant FDIs the Target 

Fund holds fail to perform its contractual obligations. 


Liquidity risk exists when particular investments are difficult to be purchased or sold 

quickly, thus restricting investment opportunities. When the Target Fund’s investment 

strategy involves FDIs, the performance of the Target Fund may be impaired because it 

may be unable to unwind or close its positions at an advantageous time, price or both. 

Counterparty liquidity can be reduced by lower credit ratings, and large cash outflows 

and margin calls can increase the Target Fund’s liquidity risk. If the Target Fund has illiquid 

positions, its limited ability to liquidate these positions at short notice will compound its 

market risk. 

Leverage Risk 

The use of FDIs may introduce a form of leverage. While the use of leverage can increase 

returns, the potential for loss is also greater. Investments in FDIs typically require the 

posting of an initial margin which amount is generally small relative to the size of the 

contract so that transactions are geared. Additional margin on short notice may be 

required if the market moves against the investment positions. If no provision is made for 

the required margin within the prescribed time, the investment may be liquidated at a loss. 

Leverage tends to exaggerate the effect of any increase or decrease in the price of FDIs or 

value of the underlying securities and hence a relatively small market movement may have 

a potentially larger impact on FDIs than on standard bonds or equities. 

To manage the risks arising from the use of FDIs, the MGF intends to monitor participation 

and positions in such FDIs closely and will ensure that a suitable risk management process 

is employed which is commensurate with the relevant the Target Fund’s risk profile. 

Additional Risk Factors for MGF-CVF 

(a) Mainland China Investment Risks: Investing in the securities markets in Mainland 

China is subject to the risks of investing in emerging markets generally as well as to 

specific risks relating to the Mainland China market. 

Investors should note that the legal system and regulatory framework of Mainland 

China are still developing, making it more difficult to obtain and/or enforce judgments

47 

and such could limit the legal protection available to investors. Military conflicts, either 

internal or with other countries, are also a risk. In addition, currency fluctuations, 

currency convertibility and fluctuations in inflation and interest rates have had, and 

may continue to have, negative effects on the economy and securities markets of 

Mainland China. Mainland China’s economic growth has historically been driven 

in a large degree by exports to the United States and other major export markets. 

Therefore, a slow-down in the global economy may have a negative impact on the 

continued growth of the Chinese economy. 

 

Many of the recent economic reforms in Mainland China are unprecedented and may 

be subject to adjustment and modification, which may not always have a positive 

effect on foreign investment in joint stock limited companies in Mainland China or in 

A-Shares, B-Shares and H-Shares. 

In view of the relatively smaller number of A-Share, B-Share and H-Share issues 

currently available in Mainland China, the choice of investments available to the 

China Value Fund is limited when compared with the choices available in other more 

developed markets and the national regulatory and legal framework for capital 

markets and joint stock companies in Mainland China are not as well developed. 

There may be a low level of liquidity of A-Share and B-Share markets in Mainland 

China, which are relatively small in terms of both combined total market value and the 

number of A-Shares and B-Shares which are available for investment. This may lead to 

severe price volatility under certain circumstances. 

Chinese companies are required to follow Mainland China accounting standards 

and practice which, to a certain extent, follow international accounting standards. 

However, there may be significant differences between financial statements prepared 

by accountants following Mainland China accounting standards and practice and 

those prepared in accordance with international accounting standards. 

Both the Shanghai and Shenzhen securities markets are in the process of development 

and change. This may lead to trading volatility, difficulty in the settlement and 

recording of transactions and in interpreting and applying the relevant regulations. 

Investments in Mainland China are likely to be sensitive to any significant change in the 

political, social and economic landscapes in Mainland China. Mainland China’s economy 

has been in a state of transition over the past 30 years from a planned economy to a more 

market-oriented economy, which differs from the economies of developed countries in 

many ways, such as in the level of government involvement, control of foreign exchange 

and allocation of resources. The Chinese government plays a major role in the economic 

reforms and will continue to exercise significant control over Mainland China’s economy, 

including potentially by the adoption of corrective measures to control the growth of 

economy, which may have an adverse impact on the securities markets of Mainland 

China and thus the performance of the China Value Fund.

48 section 64 

risk factors 

the Chinese government strictly regulates the payment of foreign currency 

denominated obligations and sets monetary policy. Through its policies, the 

government may provide preferential treatment to particular industries or companies. 

The policies set by the government may have a substantial effective on the Chinese 

economy and the investments of the China Value Fund. 

Political changes, social instability and adverse diplomatic developments in Mainland 

China could result in the imposition of additional government restrictions including 

the expropriation of assets, confiscatory taxes or nationalisation of some or all of the 

property held by the underlying issuers of the shares. 

In light of the above mentioned factors, the price of shares of Chinese companies may 

fall significantly in certain circumstances. 

(b) Mainland China Tax: Under current Mainland China tax laws and regulations, foreign 

investors (with no permanent establishment in Mainland China) are subject to a 

withholding tax of 10% on cash dividends, distributions and interest from Mainland 

China entities. Special tax treatment and tax refunds, resulting in an effective tax rate of 

less than 10% on dividends, distributions and interest, may sometimes be available under 

tax treaties, upon application to the competent tax authority. The tax laws, regulations 

and practice in Mainland China are constantly changing, and they may be changed 

with retrospective effect. In this connection, the China Value Fund may be subject to 

additional taxation that is not anticipated as at the date hereof or when the relevant 

investments are made, valued or disposed of. The income from and/or the value of the 

relevant investments in the China Value Fund may be reduced by any of those changes. 

(c) Macroeconomic Risk Factors: Slower economic growth or increase in interest rates 

could affect stock prices in the Greater China Region. 

(d) Global Commodity Prices: The Greater China Region which may be a major importer 

of commodities and a rise in commodity prices could affect margins for companies 

there. 

(e) Oil Price Risks: The Greater China Region may run a significant energy deficit, and 

a sharp and sustained rise in oil prices could have a significant impact on trade, and 

competitive position. 

(f) Government Policy Risks: Some governments in the Greater China Region may have 

adopted liberal and deregulating economic policies. A reversal of this trend would 

affect the risk premium of the region. 

(g) Risk of Price Controls: Some governments in the Greater China Region do control 

prices on some assets and may act to control the prices of goods or services 

unexpectedly in the future. This could have adverse impacts on the margins of 

investee companies.

49 

(h) Risk of Stock Market Controls: Regulation of the stock market is evolving in some 

markets or economies. There is the risk that regulations may be introduced that 

adversely affect the cost of trading or the freedom to trade, restricting the Target 

Fund’s ability to cost effectively deploy its investments. 

(i) 

(j) 

Emerging Market Risks: Except in relation to certain more advanced markets 

or economies within the Greater China Region, certain markets or economies are 

generally viewed as emerging markets. To some degree, instability in global financial 

markets that would affect sentiment to emerging markets in general would also affect 

the region as an emerging market. 

Geopolitical Risks: Except in relation to certain more advanced markets or economies 

within the Greater China Region, certain regions have historically been considered 

an unstable part of the world economy. There may have been occasional regional 

conflicts, as well as an impact from the global terrorist threat. This is an unlikely risk, 

but geopolitical instability could affect prices for stocks in regional markets. 

(k) Credit Downgrades: Any downgrade in the sovereign ratings of any of the markets 

or economies within the Greater China Region would impact the risk premium 

associated with investments in the particular geographical area or market which a 

Target Fund may invest. 

(l) 

Foreign Exchange Risks: The particular Greater China Region may be both a heavy 

importer of raw materials and a significant exporter of human capital, goods and 

services. Any volatility in the foreign exchange markets could impact the value of the 

Target Fund’s investments. 

(m) Labour Market Risks: Low wage costs are a key competitive advantage for many 

corporations in emerging markets or economies and a driver of capital account flows. 

A change in wage regulation could impact the profitability of these corporations, and 

hence their share prices. 

(n) Environmental Regulation Risks: Regulation of the environment can be 

considered relatively lax in most emerging markets or economies. Any increase in 

environmental regulation could have an impact on the industrial sector in these 

markets or economies. 

Additional Risk Factors for MGF-GRF 

Prospective investors in the MGF-GRF should note that investments in natural resources 

could be significantly affected by events relating to those industries, such as international 

political and economic developments, energy conservation, the success of exploration 

projects, tax and other government regulations, as well as other factors.

50 

section 64 

risk factors 

Additional Risk Factors for MGF-INDF 

(a) Macroeconomic Risk Factors: Slower economic growth or increase in interest rates 

could affect stock prices in the particular geographical area or market which MGF- 

INDF may invest. 

(b) Global Commodity Prices: The particular geographical area or market which MGF- 

INDF may invest may be a major importer of commodities and a rise in commodity 

prices could affect margins for companies there. 

(c) Oil Price Risks: The particular geographical area or market which MGF-INDF may 

invest may run a significant energy deficit, and a sharp and sustained rise in oil prices 

could have a significant impact on trade, and competitive position. 

(d) Government Policy Risks: Some governments in the particular region which MGF- 

INDF may invest may have adopted liberal and deregulating economic policies. A 

reversal of this trend would affect the risk premium of the region. 

(e) Risk of Price Controls: Some governments in the particular region which MGF-INDF 

may invest do control prices on some assets and may act to control the prices of goods 

or services unexpectedly in the future. This could have adverse impacts on the margins 

of investee companies. 

(f) Risk of Stock Market Controls: Regulation of the stock market is evolving in some 

markets or economies. There is the risk that regulations may be introduced that 

adversely affect the cost of trading or the freedom to trade, restricting the Target 

Fund’s ability to cost effectively deploy its investments. 

(g) Emerging Market Risks: Except in relation to certain more advanced markets or 

economies within the broader relevant geographical region which MGF-INDF may 

invest, certain markets or economies are generally viewed as emerging markets. To 

some degree, instability in global financial markets that would affect sentiment to 

emerging markets in general would affect the region as an emerging market too. 

(h) Geopolitical Risks: Except in relation to certain more advanced markets or economies 

within the broader relevant geographical region which MGF-INDF may invest, certain 

regions have historically been considered an unstable part of the world economy. 

There may have been occasional regional conflicts, as well as an impact from the 

global terrorist threat. This is an unlikely risk, but geopolitical instability could affect 

prices for stocks in regional markets.

51 

(i) 

(j) 

Credit Downgrades: Any downgrade in the sovereign ratings of any of the regional 

markets would impact the risk premium associated with investments in the particular 

geographical area or market which MGF-INDF may invest. 

Foreign Exchange Risks: The particular geographical area or market which MGF- 

INDF may invest may be both a heavy importer of raw materials and a significant 

exporter of human capital, goods and services. Any volatility in the foreign exchange 

markets could impact the value of the Target Fund’s investments. 

(k) Labour Market Risks: Low wage costs are a key competitive advantage for many 

corporations in emerging markets or economies and a driver of capital account flows. 

A change in wage regulation could impact the profitability of these corporations, and 

hence their share prices. 

(l) 

Environmental Regulation Risks: Regulation of the environment can be considered 

relatively lax in most emerging markets or economies. Any increase in environmental 

regulation could have an impact on the industrial sector in these markets or economies. 

The MGF-INDF will invest in the India market through an FII that is regulated by 

The Securities and Exchange Board of India Foreign Institutional Investors Regulation, 

1995. Investments made through such FII status are therefore subject to any statutory 

or regulatory limits imposed by the Indian authority, the Securities and Exchange 

Board of India, from time to time. Investors should note the risks due to any such 

regulatory changes. 

It is important to note that events affecting the investments cannot always 

be foreseen. Therefore, it is not always possible to protect your investments 

against all risks. Different asset classes such as equity, commodities and fixed 

income securities generally exhibit different levels of risk. Please note that the 

returns of all the Funds are not guaranteed. 

The investment of all the Funds carries risks and investors are recommended to 

read the whole Master Prospectus to assess the risks of all the Funds. 

Investors are reminded that the above list of risks may not be exhaustive and 

if necessary, they should consult their adviser(s), e.g. their bankers, lawyers, 

stockbrokers or independent financial advisers for a better understanding of 

the risks.

52 section 5 

fund details 

5.1 Manulife Investment - China Value Fund 

5.1.1 Investment Objective 

Manulife Investment - China Value Fund invests in the MGF-CVF which aims to achieve 

Long Term capital growth through investment, primarily* in under-valued companies with 

Long Term potential and substantial business interest in the Greater China Region (which 

includes PRC, Hong Kong and Taiwan) which are listed or traded on stock exchanges of 

Shanghai, Shenzhen, Hong Kong, Taipei or other exchanges. 

* primarily means mainly 70% invested 

Note: Any material changes to the Fund’s investment objective would require Unit Holders’ 

approval. 

5.1.2 Benchmark 

The benchmark for the Fund is the FTSE All World Greater China Index. Investors may refer 

to Bloomberg L.P. and/or the Manager for this benchmark. 

5.1.3 Investment Policy and Strategy 

The Fund will invest principally in MGF-CVF Share Class A managed by VP. MGF-CVF is a 

collective investment scheme constituted in Luxembourg. MGF-CVF was established on 1 

April 1998. 

This Fund is a feeder fund that invests at least 95% of its NAV in MGF-CVF. The risk 

management strategies and techniques employed will be at the MGF-CVF level by VP with 

its investment strategy that involves diversification among its asset allocation to invest in 

undervalued stocks or companies in China market, as elaborated in Section 5.4. 

Although the Fund is passively managed, the investments of the Fund will be rebalanced 

from time to time to meet redemptions and to enable the proper and efficient management 

of the Fund. Specific risks associated with such securities and investments are as elaborated 

in Section 4.2. 

Notwithstanding the above, the Manager may, in consultation with the Trustee and with 

the Unit Holder’s approval, replace MGF-CVF with another fund of a similar objective if, 

in the Manager’s opinion, MGF-CVF no longer meets this Fund’s investment objective, or 

when acting in the interest of the Unit Holders. 

In all circumstances the MICVF will continue investing at least 95% of its NAV in MGF-CVF 

as such the performance of MGF-CVF will reflect on the MIVCF’s performance. 

5.1.4 Asset Allocation 

This Fund’s portfolio will be structured as follows: 

At least 95% of NAV 

- Investments in the units of MGF-CVF.

53 

2% - 5% of NAV 

- Investments in money market instruments (including fixed income securities of not 

more than 365 days) and deposits with financial institutions for liquidity purposes. 

The Fund may reduce its exposure in the Target Fund to only 95% of the Fund’s NAV 

as part of the Fund’s temporary defensive measure in the event of adverse market 

conditions. 

5.1.5 Permitted Investments and Investment Restrictions and Limits 

This Fund may invest in units of the MGF-CVF or such other collective investment 

schemes having a similar objective and liquid assets consisting of money market 

instruments (including fixed income securities of not more than 365 days) and deposits 

with any financial institutions and any other forms of investments as may be permitted 

by the SC from time to time. 

In respect of any restriction and limits stipulated by the Guidelines, the value of the 

Fund’s placement in deposits with any single financial institution must not exceed 20% 

of the Fund’s NAV. 

The Fund is required to invest up to 98% of the Fund’s NAV in the MGF-CVF. 

This Fund is a feeder fund and must not invest in – 

a. a fund-of-funds; 

b. a feeder fund; and 

c. any Target Fund of an umbrella scheme which is a fund-of-funds or a feeder fund. 

The limits and restrictions mentioned herein must be complied with at all times based 

on the most up-to-date value of the Fund’s investments. However, a 5% allowance in 

excess of the limits or restrictions is permitted where the limit or restriction is breached 

through an appreciation or depreciation of the Net Asset Value of the Fund (whether 

as a result of an appreciation or depreciation of the investments or as a result of 

repurchase of units or payment made from the Fund). The Manager will not make 

any further acquisitions to which the relevant limit is breached, and the Manager will 

within a reasonable period of not more than three (3) months from the date of the 

breach take all necessary steps and actions to rectify the breach. 

5.1.6 Collective Investment Scheme 

As this Fund is a feeder fund, it will invest predominantly in a collective investment 

scheme i.e. MGF-CVF which is constituted in Luxembourg. 

5.1.7 Liquid Assets 

This Fund shall not borrow in connection with its activities or lend any of its cash or 

investments unless permitted by the Guidelines.

54 

section 65 

fund details 

The Investment Manager in allocating asset of the Fund, will maintain a minimum liquid 

assets level of 2% of the NAV of the Fund for the purpose of meeting redemptions 

and to enable the proper and efficient management of the Fund. However, this does 

not preclude the Investment Manager from lowering or raising the liquid assets level 

beyond the stipulated level to allow the Investment Manager to react to the prevailing 

market conditions and to manage investment risk when circumstances warrant it. 

5.1.8 Investors’ Profile 

This Fund would be suitable for investors who: 

(a) wish to participate in the potential of the Greater China markets; and 

(b) are willing to accept high risk in their investments in order to achieve Long Term 

capital growth. 

5.2 Manulife Investment - Global Resources Fund 


Manulife Investment - Global Resources Fund invests in the MGF-GRF which aims to 

achieve Long Term capital growth mainly through equities and equity-related investments 

of companies involved in resources such as gas, oil, coffee, sugar and related industries 

globally which are listed on any stock exchange. 

Note: Any material changes to the Fund’s investment objective would require Unit Holders’ 

approval. 


The MGF-GRF mainly invest in equities and equity related investment company 

involved in three sector which are gold mines and precious metal, material excluding 

gold and energy companies. Therefore the benchmark for the MIGRF is the composite 

benchmarking comprising MSCI World Energy (1/3), MSCI World Materials (1/3) and 

FTSE Gold Mines (1/3). 

Information on MSCI World Energy, MSCI World Materials and FTSE Gold Mines can be 

obtainable from Bloomberg L.P. 

Alternatively, the composite benchmark can be obtained from the Manager. 


The Fund will invest principally in MGF-GRF managed by MAMHK which has in turn 

appointed Amundi to provide sub-investment management services. MGF-GRF is a 

collective investment scheme constituted in Luxembourg. MGF-GRF was established on 

29 January 2007.

55 

This Fund is a feeder fund that invests at least 95% of its NAV in MGF-GRF. The 

risk management strategies and techniques employed will be at the MGF-GRF level 

by MAMHK with its investment strategy that involves diversification among its asset 

allocation to invest at least 70% of its non-cash assets in the equity securities of 

companies within the natural resources sector, such as hydrocarbon, precious metal 

and basic product, as elaborated in Section 5.4. 

Although the Fund is passively managed, the investments of the Fund will be 

rebalanced from time to time to meet redemptions and to enable the proper and 

efficient management of the Fund. Specific risks associated with such securities and 

investments are as elaborated in Section 4.2. 

Notwithstanding the above, the Manager may, in consultation with the Trustee 

and with the Unit Holder’s approval, replace MGF-GRF with another fund of a 

similar objective if, in the Manager’s opinion, MGF-GRF no longer meets this Fund’s 

investment objective, or when acting in the interest of the Unit Holders. 

In all circumstances the MIGRF will continue investing at least 95% of its NAV in MGF- 

GRF as such the performance of MGF-GRF will reflect on the MIGRF’s performance. 


This Fund’s portfolio will be structured as follows: 


- Investments in the units of MGF-GRF. 

2% - 5% of NAV 



The Fund may reduce its exposure in the Target Fund to only 95% of the Fund’s NAV as 

part of the Fund’s temporary defensive measure in the event of adverse market conditions. 


This Fund may invest in units of the MGF-GRF or such other collective investment 

schemes having a similar objective, liquid assets including money market instruments 

(including fixed income securities of not more than 365 days) and deposits with any 

financial institutions and any other forms of investments as may be permitted by the 

SC from time to time. 

In respect of any restriction and limits stipulated by the Guidelines, the value the 



The Fund is required to invest up to 98% of the Fund’s NAV in the MGF-GRF.

56 

section 65 

fund details 

This Fund is Feeder Fund and must not invest in – 




The limits and restrictions mentioned herein must be complied with at all times based on 

the most up-to-date value of the Fund’s investments. However, a 5% allowance in excess 

of the limits or restrictions is permitted where the limit or restriction is breached through 

an appreciation or depreciation of the Net Asset Value of the Fund (whether as a result 

of an appreciation or depreciation of the investments or as a result of repurchase of units 

or payment made from the Fund). The Manager will not make any further acquisitions to 

which the relevant limit is breached, and the Manager will within a reasonable period of 

not more than three (3) months from the date of the breach take all necessary steps and 

actions to rectify the breach. 


As this Fund is a feeder fund, it will invest predominantly in a collective investment scheme 

i.e. MGF-GRF which is constituted in Luxembourg. 



investments unless permitted by the Guidelines. 

The Investment Manager in allocating assets of the Fund will maintain a minimum 

liquid assets level of 2% of the NAV of the Fund for the purpose of meeting 

redemptions and to enable the proper and efficient management of the Fund. 

However, this does not preclude the Investment Manager from lowering or raising 

the liquid assets level beyond the stipulated level to allow the Investment Manager 

to react to the prevailing market conditions and to manage investment risk when 

circumstances warrant it. 



(a) wish to capitalise on the opportunities offered by the natural resources sectors 

(b) are willing to invest in diversified global market; and 

(c) are willing to accept high risk in their investments in order to achieve Long Term 

capital growth.

57 

5.3 Manulife Investment - India Equity Fund 


Manulife Investment - India Equity Fund invests in the MGF-INDF which aims to 

achieve Long Term capital growth through equities and equity-related investments of 

companies covering different sectors of the Indian economy and which are listed on 

stock exchanges in India or on any stock exchange. The remaining assets of the MGF- 

INDF may include convertible bonds, bonds, deposits and other investments. 

Note: Any material changes to the Fund’s investment objective would require Unit 

Holders’ approval. 


The benchmark for the Fund is BSE 100. Investors may refer to Bloomberg L.P. and/or 

the Manager for this benchmark. 


The Fund will invest principally in MGF-INDF managed by MAMHK. MGF-INDF is a 

collective investment scheme constituted in Luxembourg. MGF-INDF was established 

on 30 November 2006. 

This Fund is a feeder fund that invests at least 95% of its NAV in MGF-INDF. The 

risk management strategies and techniques employed will be at the MGF-INDF level 

by MAMHK with its investment strategy that involves diversification among its asset 

allocation to invest in India market through Foreign Institutional Investor (“FII”) that is 

regulated by The Securities and Exchange Board of India Foreign Institutional Investors 

Regulation 1995, as elaborated in Section 5.4. 

Although the Fund is passively managed, the investments of the Fund will be 

rebalanced from time to time to meet redemptions and to enable the proper and 

efficient management of the Fund. Specific risks associated with such securities and 

investments are as elaborated in Section 4.2. 

Notwithstanding the above, the Manager may, in consultation with the Trustee and 

with the Unit Holder’s approval, replace MGF-INDF with another fund of a similar 

objective if, in the Manager’s opinion, MGF-INDF no longer meets this Fund’s 

investment objective, or when acting in the interest of the Unit Holders. 

In all circumstances the MIIEF will continue investing at least 95% of its NAV in MGF- 

INDF as such the performance of MGF-INDF will reflect on the MIIEF’s performance. 


This Fund’s portfolio will be structured as follows:

58 

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fund details 


- Investments in the units of MGF-INDF. 

2% - 5% of NAV 



The Fund may reduce its exposure in the Target Fund to only 95% of the Fund’s NAV 

as part of the Fund’s temporary defensive measure in the event of adverse market 

conditions. 


This Fund may invest in units of the MGF-INDF or such other collective investment 

schemes having similar objective, liquid assets including money market instruments 

(including fixed income securities of not more than 365 days) and deposits with any 

financial institutions and any other forms of investments as may be permitted by the 

SC from time to time. 

In respect of any restriction and limits stipulated by the Guidelines, the value of the 



The Fund is required to invest up to 98% of the Fund’s NAV in the MGF-INDF. 

This Fund is Feeder Fund and must not invest in – 




The limits and restrictions mentioned herein must be complied with at all times based 

on the most up-to-date value of the Fund’s investments. However, a 5% allowance in 

excess of the limits or restrictions is permitted where the limit or restriction is breached 

through an appreciation or depreciation of the Net Asset Value of the Fund (whether 

as a result of an appreciation or depreciation of the investments or as a result of 

repurchase of units or payment made from the Fund). The Manager will not make 

any further acquisitions to which the relevant limit is breached, and the Manager will 

within a reasonable period of not more than three (3) months from the date of the 

breach take all necessary steps and actions to rectify the breach. 


As this Fund is a feeder fund, it will invest predominantly in a collective investment scheme 

i.e. MGF-INDF which is constituted in Luxembourg.

59 



investments unless permitted by the Guidelines. 

The Investment Manager in allocating assets of the Fund will maintain a minimum liquid 

assets level of 2% of the NAV of the Fund for the purpose of meeting redemptions and 

to enable the proper and efficient management of the Fund. However, this does not 

preclude the Investment Manager from lowering or raising the liquid assets level beyond 

the stipulated level to allow the Investment Manager to react to the prevailing market 

conditions and to manage investment risk when circumstances warrant it. 



(a) seek an investment in the India market; and 

(b) are willing to accept high risk in their investments in order to achieve Long Term 

capital growth. 

5.4 Information on Manulife Global Fund 

5.4.1 About Manulife Global Fund 

MGF was incorporated with limited liability on 7 July 1987, as a “société d’investissement 

à capital variable” (“SICAV”) under the law of 10 August 1915, as amended, of the 

Grand Duchy of Luxembourg. It now has an unlimited life and qualifies as a collective 

investment undertaking under Part 1 of the Luxembourg Law of 20 December 2002 

(“2002 Law”). MGF changed its name to Regent Global Fund on 22 June 1992, to 

Manulife Regent Global Fund on 28 July 1995, and to Manulife Global Fund on 19 

February 1997. MGF’s legal minimum capital is the USD equivalent of 1,250,000 Euros. 

MGF has appointed Manulife Asset Management International Holdings Limited 

(“MAMIHL”) as the general adviser and distributor to provide it with general advisory 

and distribution services regarding the sale, conversion, redemption and marketing of 

the Shares internationally. 

MAMIHL is an International Business Company incorporated in Barbados on October 

31, 1994. It provides investment management advisory services to various Manulife 

Mutual Fund in Asia. It is primarily responsible for the selection and monitoring of 

investment managers for the Mutual Fund in Asia. 

MAMIHL will assist the board of directors of MGF in selecting the underlying 

investment managers, carry out the selection process of investment managers if so 

authorised by MGF and will advise the board of directors of MGF of any actions, 

strategies, pricing and management mandates. MAMIHL will also negotiate with the 

investment managers on fees, terms and conditions of their appointment.

60 

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fund details 

MAMIHL will provide the necessary compliance and administrative support, 

and infrastructure, receive and coordinate any investment breach reports from 

the underlying investment managers, maintain and safe keep all investment 

management contracts, oversee compliance of the duties and conduct of the 

underlying investment managers, perform ongoing due diligence on the said 

investment managers, continuously review the respective investment manager’s 

capability to carry out investment management functions and will administer the 

payment of remuneration to the various investment managers in accordance with 

the respective fee terms agreed with them. 

MGF’s share capital presently comprises 29 funds. Out of the 29 funds, the Manager 

has selected MGF-CVF Share Class A, MGF-GRF Share Class AA and MGF-INDF 

Share Class AA as the respective Target Funds for MICVF, MIGRF and MIIEF. 

5.4.2 Information of MGF-CVF Share Class A 

(a) About VP 

Value Partners Limited was established in February 1993. As at 31 October 2011, 

the Value Partners group manages over USD7.7 billion of funds from institutional 

and retail investors from Europe, US, Hong Kong and Japan. VP’s funds are mainly 

managed on an absolute return basis. The funds focus primarily on public equities 

across the Asia-Pacific region. The investment team has the necessary experience 

and expertise in researching and investing in listed equities in Asia Pacific markets, 

within a comprehensive and disciplined risk management framework. 

VP is regulated by the Securities and Futures Commission of Hong Kong and the 

Financial Services Commission in the British Virgin Islands. 

(b) Investment Objective – MGF-CVF 

MGF-CVF aims to achieve Long Term capital growth through investment, primarily 

in companies with substantial business interests in the Greater China Region 

(which includes PRC, Hong Kong and Taiwan) which are listed on stock exchanges 

of Shanghai, Shenzhen, Hong Kong, Taipei or other exchanges and which are 

currently under-valued but which may have long term potential. MGF-CVF invests in 

companies established in Greater China or which derive a majority of their revenue 

from business related to Greater China, whether in the form of direct investment 

in, or trade with, Greater China. This includes companies incorporated and/or listed 

outside Greater China and have over 50% business in Greater China region. 

(c) Investment Strategy – MGF-CVF 

MGF-CVF invests generally in equity securities of its target companies, although it may 

also invest in convertible bonds and depository receipts issued by such companies, in 

all cases, within the limits of the investment and borrowing powers and restrictions.

61 

Investments of the MGF-CVF may also include A-Shares and/or B-Shares listed on the 

Shanghai Securities Exchange and the Shenzhen Stock Exchange in Mainland China. 

MGF-CVF is not investing at the A-Share market for the time being, but may invest in 

it with a maximum of 30% of its net asset value at a time that the directors of MGF 

and VP determine. Prior notice will be given to the relevant investors and the name of 

the QFII will be disclosed should the MGF-CVF determine in the future to invest in the 

A-Share market 

 

MGF seeks to differentiate MGF-CVF from other funds investing in Greater China 

that are already available in the market by investing principally in companies that 

are undervalued. Undervalued stocks are those that trade at a lower valuation than 

their intrinsic value. VP will use in-house financial models to arrive at a company’s 

intrinsic value. Such companies, in VP’s opinion, either have excellent potential but are 

generally not recognised as having such potential and can therefore be purchased at 

cheap prices, or are currently out-of-favour with the market but VP’s research indicates 

that they have significant potential for gains. The emphasis will be on selecting such 

stocks and, as a result, the portfolio will consist of listed securities that may not have 

a high degree of correlation with other more mainstream China stocks. 

MGF-CVF may also invest in fixed-income securities and hold cash on an ancillary basis, 

if determined to be appropriate by VP. MGF-CVF will be permitted, within applicable 

restrictions, to use derivatives for the purpose of efficient portfolio management and 

hedging of portfolio risk and may, from time to time, do so through the use of index/ 

equity options or futures contracts if determined to be appropriate by VP. 

(d) Benchmark – MGF-CVF 

FTSE All World Greater China Index 

5.4.3 Information of MGF-GRF Share Class AA 

(a) About MAMHK and Amundi 

MAMHK is a wholly owned subsidiary of MAMIHL and ultimately owned subsidiary of 

MFC. 

MAMHK offers clients a comprehensive range of investment products from singlecountry 

portfolios to complex global multi-asset class portfolios. As one of the Hong 

Kong’s leading wealth management firms, MAMHK is committed to long term 

strategy, providing a window to the world of investment opportunities. 

MAMHK is the investment manager of MGF-GRF and is regulated by the 

Securities and Futures Commission of Hong Kong. With effect from 1 January 

2011, MAMHK has appointed Amundi to provide sub-investment management 

services for MGF-GRF.

62 

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fund details 

amundi S.A. was formed by combining the asset management expertise of Crédit 

Agricole and Société Générale in January 2010. As at the end of September 2011, 

Amundi S.A. has 679.4 billion (US$917.4 billion) in assets under management. 

Amundi S.A. was incorporated under the laws of France and is regulated by the 

Autorite des Marches financiers in France. 

(b) Investment Objective – MGF-GRF 

MGF-GRF’s primary objective is to provide long term capital growth for those 

who hold a long term investment view and who are prepared to accept significant 

fluctuations in the value of their investments in order to achieve long term returns. It 

is intended that the investments will be made on a diversified basis. The underlying 

investment portfolio will mainly consist of equity-related investments and equities 

of companies involved in natural resources and related industries globally and which 

are listed on any stock exchange. MGF-GRF may invest in companies which derive a 

significant portion of their earnings from business activities in global resources sectors 

(i.e. to be invested in companies which are 100% directly and indirectly invested in 

the global resources sectors). The remaining assets of MGF-GRF may include bonds, 

deposits and other investments. 

(c) Investment Strategy – MGF-GRF 

to ascertain that MGF-GRF invests in companies involved in natural resources, the 

investment decisions are made by Amundi’s investment team. 

amundi’s investment team believes that low individual discretion is a way to enjoy the 

merit of team management structure which reinforces group synergy and minimizes 

personal judgment mistake and to guarantee optimal transparency, decisions are 

controlled on several complementary levels. 

the risk manager of MGF-GRF is responsible for the verification that all investments 

made by the MGF-GRF is classified by Morgan Stanley Composite Index as global 

resources companies 

MGF-GRF normally invests at least 70% of its non-cash assets in the equity securities 

of companies within the natural resources sector. Consistent with its investment 

objective, MGF-GRF may invest internationally in the various industries of the natural 

resource sector, such as hydrocarbon, precious metals, and basic products. 

In selecting investments, MAMHK applies a ”top-down” approach to look for the 

optimal sector allocation and a ”bottom-up” approach to look for companies with 

sound fundamentals. As part of the top-down approach, MAMHK evaluates the 

global macro-economic environment, including current natural resources supply and 

demand fundamentals; short-term opportunities or risks; and the development and 

application of new technologies in the medium-term. For its bottom-up selection 

strategy, MAMHK looks at a company’s management and strategy, cost structure, 

growth potential and geographic presence.

63 

additionally, MAMHK also considers historical, current and forecasted valuation, 

valuation multiples to earnings and cash flow, current and expected net-asset-value, 

balance sheet quality, working capital needs and overall profitability measured by 

returns on invested capital. 

as MAMHK puts these two processes together, it can select securities that it believes 

meet MGF-GRF investment objective. MAMHK will regularly review its security 

selection process and its forecast to keep current with changing market conditions. 

(d) Benchmark – MGF-GRF 

Composite benchmarking comprising MSCI World Energy (1/3), MSCI World Material 

(1/3) and FTSE Gold Mines (1/3) 

5.4.4 Information of MGF-INDF Share Class AA 

(a) About MAMHK 

MAMHK is a wholly owned subsidiary of MAMIHL and ultimately owned subsidiary of MFC. 

MAMHK offers clients a comprehensive range of investment products from singlecountry 

portfolios to complex global multi-asset class portfolios. As one of the Hong 

Kong’s leading wealth management firms, MAMHK is committed to long term 

strategy, providing a window to the world of investment opportunities. 

MAMHK is the investment manager of MGF-INDF and is regulated by the Securities 

and Futures Commission of Hong Kong. 

(b) Investment Objective – MGF-INDF 

MGF-INDF aims to provide long term capital growth for those investors who hold a 

long term investment view and are prepared to accept significant fluctuations in the 

value of their investments. MGF-INDF’s investment portfolio will consist mainly of 

equity-related investments and equities of companies covering the different sectors 

of the Indian economy and which are listed on a stock exchange either in India or 

overseas. The remaining assets of MGF-INDF may include convertible bonds, bonds, 

deposits and other investments. Investments in the Indian market shall be made 

through a Foreign Institutional Investor (“FII”) certificate registered with the India 

regulator. Such an FII can be either MGF or MAMHK. 

(c) Investment Strategy – MGF-INDF 

MGF-INDF seeks to outperform the BSE 100 Index through well researched investments 

in Indian equities for Long Term growth, with no tracking error constraint. 

this is performed by implementing an active management style based on fundamental 

analysis, leading to the construction of an all cap blend portfolio - but large cap 

oriented - which aims at capturing the growth potential of Indian equities through 

three main source of added value: dynamic allocation in terms of sector and market 

capitalization, combined with stock selection.

64 

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fund details 

MGF-INDF consists of a portfolio of 30 to 60 stocks, through well researched 

investments in Indian equities. MAMHK may adapt its management style 

(growth / value) and is not constrained by a track error limit which increases 

management discretion and therefore potential gains. 

Overall, MGF-INDF’s philosophy is to provide investors with opportunities 

for Long Term growth in capital through superior stock selection and active 

portfolio management. 

(d) Benchmark - MGF-INDF 

BSE 100 

5.4.5 Investment Restriction of MGF-CVF, MGF-GRF and MGF-INDF 

While MGF has broad powers under its Articles of Incorporation as to the type of 

investments it may make and the investment methods it may adopt, the board of MGF 

has resolved that: 

A1 

MGF will only invest in: 

A1.1 Transferable securities and money market instruments admitted to official 

listings on stock exchanges in the Member States of the European Union (“EU”); 

A1.2 Transferable securities and money market instruments dealt in on other 

Regulated Markets in the Member States of the EU, that are operating regularly, 

are recognised and are open to the public; 

A1.3 Transferable securities and money market instruments admitted to official 

listings on stock exchanges in any member country of the Organisation for 

Economic Cooperation and Development (the “OECD”) and any other country 

in Europe, Asia, Oceania, the American continents and Africa; 

A1.4 Transferable securities and money market instruments dealt in on other 

Regulated Markets that are operating regularly, are recognised and open to the 

public of any member country of the OECD and any other country in Europe, 

Asia, Oceania, the American continents and Africa; 

A1.5 Recently issued transferable securities and money market instruments provided 

that the terms of the issue include an undertaking that application will be made 

for admission to the official listing on one of the stock exchanges as specified in 

paragraphs A1.1 and A1.3 or Regulated Markets that are operating regularly, are 

recognised and open to the public as specified in paragraphs A1.2 and A1.4 and 

that such admission is secured within a year of issue;

65 

A1.6 Units of undertaking for collective investments in transferable securities (“UCITS”) 

and/or other undertakings for collective investment (“UCIs”) within the meaning 

of Article 1(2), first and second indents of Directive 85/611/EEC, as amended, 

whether they are situated in a Member State or not, provided that: 

• such other UCIs are authorised under laws which provide that they are 

subject to supervision considered by the Commission de Surveillance du 

Secteur Financier (“CSSF”) to be equivalent to that laid down in Community 

law, and that cooperation between authorities is sufficiently ensured; 

• the level of protection for unit holders in the other UCIs is equivalent to 

that provided for unit holders in a UCITS, and in particular that the rules on 

asset segregation, borrowing, lending, and uncovered sales of transferable 

securities and money market instruments are equivalent to the requirements 

of Directive 85/611/EEC, as amended; 

• the business of the other UCIs is reported in half-yearly and annual reports 

to enable an assessment to be made of the assets and liabilities, income and 

operations over the reporting period; and 

• no more than 10% of the UCITS’ or the other UCIs’ assets (or of the assets 

of any Target Fund thereof, provided that the principle of segregation of 

liabilities of the different compartments is ensured in relation to third parties), 

whose acquisition is contemplated, can, according to their constitutional 

documents, be invested in aggregate in units of other UCITS or other UCIs; 

A1.7 Deposits with credit institutions which are repayable on demand or have the 

right to be withdrawn, and maturing in no more than 12 months, provided 

that the credit institution has its registered office in an EU Member State or, if 

the registered office of the credit institution is situated in a non-Member State, 

provided that it is subject to prudential rules considered by the CSSF as equivalent 

to those laid down in Community law; 

A1.8 Financial derivative instruments, including equivalent cash-settled instruments, 

dealt in on a Regulated Market; and/or financial derivative instruments including 

currency options dealt in over-the-counter (“OTC Derivatives”), provided that: 

• the underlying consists of instruments described in paragraphs A1.1 to A1.7 

above, financial indices, interest rates, foreign exchange rates or currencies, 

in which MGF may invest according to its investment objectives; 

• the counterparties to OTC Derivative transactions are institutions subject 

to prudential supervision, and belonging to the categories approved by the 

CSSF, and;

66 

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fund details 

• the OTC Derivatives are subject to reliable and verifiable valuation on a daily 

basis and can be sold, liquidated or closed by an offsetting transaction at any 

time at their fair value at MGF’s initiative; 

A1.9 Money market instruments other than those dealt in on a Regulated Market, which 

fall under Article 1 of the 2002 Law, if the issue or issuer of such instruments is itself 

regulated for the purpose of protecting investors and savings, and provided that 

they are: 

• issued or guaranteed by a central, regional or local authority or central bank 

of an EU Member State, the European Central Bank, the EU or the European 

Investment Bank, a non-Member State or, in the case of a Federal State, by 

one of the members making up the federation, or by a public international 

body to which one or more Member States belong; 

• issued by an undertaking any securities of which are dealt in on Regulated 

Markets referred to in paragraphs A1.1, A1.2 or A1.3 above; 

• issued or guaranteed by an establishment subject to prudential supervision, in 

accordance with criteria defined by Community law, or by an establishment 

which is subject to and complies with prudential rules considered by the CSSF 

to be at least as stringent as those laid down by Community law; or 

• issued by other bodies belonging to the categories approved by the CSSF 

provided that investments in such instruments are subject to investor 

protection equivalent to that laid down in the first, the second or the third 

indent and provided that the issuer is a company whose capital and reserves 

amount to at least 10 million Euros and which presents and publishes its 

annual accounts in accordance with Directive 78/660/EEC (1), is an entity 

which, within a group of companies which includes one or several listed 

companies, is dedicated to the financing of the group or is an entity which 

is dedicated to the financing of securitisation vehicles which benefit from a 

banking liquidity line. 

B1 

C1 

Furthermore, each fund of the MGF may invest no more than 10% of its net 

assets in securities and money market instruments other than those referred to in 

paragraph A1.1 to A1.9. 

Further, 

C1.1 Each fund of the MGF may acquire the units of UCITS and/or other UCIs referred 

to in paragraph A1.6, provided that investments into one single UCITS or other 

UCI may not exceed 10% of the net assets of each fund of the MGF, unless 

otherwise provided for in the relevant funds’ of the MGF investment policy.

67 

C1.2 Investments made in units of UCIs other than UCITS may not exceed, in aggregate, 

30% of the net assets of each fund of the MGF. 

C1.3 When a fund of the MGF has acquired shares of UCITS and/or other UCIs, the 

assets of the respective UCITS or other UCIs do not have to be combined for the 

purposes of the limits laid down in paragraph E1. 

C1.4 When a fund of the MGF invests in the units of other UCITS and/or other UCIs 

that are managed, directly or by delegation, by the same investment manager or 

by any other company with which the investment manager is linked by common 

management or control, or by a substantial direct or indirect holding, that no 

subscription, redemption or management fees may be charged to MGF on its 

investment in the units of such other UCITS and/or UCIs. 

D1 

E1 

a fund of the MGF may hold ancillary liquid assets. 

A fund of the MGF may not invest in any one issuer in excess of the limits set out 

below: 

E1.1 not more than 10% of a fund’s of the MGF net assets may be invested in 

transferable securities or money market instruments issued by the same entity; 

E1.2 Not more than 20% of fund’s of the MGF net assets may be invested in deposits 

made with the same entity; 

E1.3 By way of exception, the 10% limit stated in paragraph E1.1 may be increased to: 

• a maximum of 35% if the transferable securities or money market 

instruments are issued or guaranteed by an EU Member State, by its local 

authorities, by a non-Member State or by public international bodies to 

which one or more Member States belong; and 

• a maximum of 25% in the case of certain bonds when these are issued by 

a credit institution which has its registered office in an EU Member State 

and is subject by law to special public supervision designed to protect bond 

holders. In particular, sums deriving from the issue of these bonds must 

be invested in conformity with the law in assets which, during the whole 

period of validity of the bonds, are capable of covering claims attaching to 

the bonds and which, in the event of failure of the issuer, would be used on 

a priority basis for the reimbursement of the principal and payment of the 

accrued interest. When a fund of the MGF invests more than 5% of its net 

assets in the bonds referred to in this paragraph and issued by one issuer, 

the total value of these investments may not exceed 80% of the value of the 

net assets of such fund of the MGF.

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fund details 

E1.4 The total value of the transferable securities or money market instruments held 

by a fund of the MGF in the issuing bodies in each of which it invests more than 

5% of its net assets must not then exceed 40% of the value of its net assets. This 

limitation does not apply to deposits and OTC Derivative transactions made with 

financial institutions subject to prudential supervision. The transferable securities 

and money market instruments referred to in the two indents under paragraph 

E1.3 above shall not be taken into account for the purpose of applying the limit of 

40% referred to in this paragraph. 

F1 

notwithstanding the individual limits laid down in paragraphs E1.1 to E1.4 above, 

a fund of the MGF may not combine 

• investments in transferable securities or money market instruments issued 

by a single entity, and/or 

• deposits made with a single entity, and/or 

• exposures arising from OTC Derivative transactions undertaken with a single 

entity, in excess of 20% of its net assets. 

the limits provided for in paragraphs E1.1 to E1.4 above may not be combined, 

and thus investments in transferable securities or money market instruments 

issued by the same entity or in deposits or derivative instruments made with 

this entity carried out in accordance with paragraphs E1.1 to E1.4 shall under no 

circumstances exceed in total 35% of the net assets of the fund of the MGF. 

Companies which are included in the same group for the purposes of consolidated 

accounts, as defined in accordance with Directive 83/349/EEC or in accordance 

with recognised international accounting rules, are regarded as a single entity for 

the purpose of calculating the investment limits mentioned in paragraphs E1.1 to 

E1.4 above. 

the fund of the MGF may not invest cumulatively more than 20% of its net assets 

in transferable securities or money market instruments of the same group 

Without prejudice to the limits laid down in paragraph G1 and H1 below, the limit 

of 10% laid down in paragraph E1.1 above is raised to a maximum of 20% for 

investment in equity and/or debt securities issued by the same body when the aim 

of the investment policy of a fund of the MGF is to replicate the composition of 

a certain equity or debt securities index which is recognised by the CSSF, on the 

following basis: 

• the composition of the index is sufficiently diversified, 

• the index represents an adequate benchmark for the market to which it 

refers,

69 

• it is published in an appropriate manner. 

this limit is 35% where that proves to be justified by exceptional market conditions, 

in particular in Regulated Markets where certain transferable securities or money 

market instruments are highly dominant. The investment up to this limit is only 

permitted for a single issuer. 

By way of derogation, each fund of the MGF is authorised to invest up 

to 100% of its net assets in different transferable securities and money 

market instruments issued or guaranteed by an EU Member State, its local 

authorities, by member states of the OECD or public international bodies 

of which one or more EU Member States are members, provided that (i) 

such securities are part of at least six different issues and (ii) securities 

from any one issue do not account for more than 30% of the net assets of 

such fund of the MGF. 

G1 

H1 

MGF may not invest in shares with voting rights enabling it to exercise significant 

influence over the management of the issuing body. 

MGF may not: 

H1.1 Acquire more than 10% of the shares with non-voting rights of one and the same 

issuer. 

H1.2 Acquire more than 10% of the debt securities of one and the same issuer. 

H1.3 Acquire more than 25% of the units of one and the same undertaking for 

collective investment. 

H1.4 Acquire more than 10% of the money market instruments of any single issuer. 

the limits stipulated in paragraphs H1.2, H1.3 and H1.4 above may be disregarded 

at the time of acquisition if, at that time, the gross amount of debt securities or of 

the money market instruments, or the net amount of securities in issue cannot be 

calculated. 

I1 

the limits stipulated in paragraphs G1 and H1 above do not apply to: 

I1.1 transferable securities and money market instruments issued or guaranteed by an 

EU Member State or its local authorities; 

I1.2 transferable securities and money market instruments issued or guaranteed by a 

non-EU Member State; 

I1.3 transferable securities and money market instruments issued by public 

international institutions to which one or more EU Member States are members;

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fund details 

I1.4 Transferable securities held by a fund of the MGF in the capital of a company 

incorporated in a non-Member State investing its assets mainly in the securities 

of issuing bodies having their registered offices in that State, where under the 

legislation of that State such a holding represents the only way in which such 

fund of the MGF can invest in the securities of issuing bodies of that State. This 

derogation, however, shall apply only if in its investment policy MGF from the 

non-Member State complies with the limits laid down in Articles 43, 46 and 

48 (1) and (2) of the 2002 Law. Where the limits set in Articles 43 and 46 of 

the 2002 Law are exceeded, Article 49 shall apply mutatis mutandis; and 

I1.5 Transferable securities held by MGF in the capital of subsidiary companies 

carrying on only the business of management, advice or marketing in the 

country where the subsidiary is located, in regard to the repurchase of units at 

unit holders’ request exclusively on its or their behalf. 

J1 

K1 

L1 

M1 

N1 

MGF may always, in the interest of the shareholders, exercise the subscription 

rights attached to securities, which forms part of its assets. 

When the maximum percentages stated in paragraphs B1 through H1 above 

are exceeded for reasons beyond the control of MGF, or as a result of the 

exercise of subscription rights, MGF must adopt, as a priority objective, sales 

transactions to remedy the situation, taking due account of the interests of its 

shareholders. 

A fund of the MGF may borrow an amount of up to 10% of its total net assets 

(valued at market value) provided these borrowings are made on a temporary 

basis. However, MGF may acquire for the account of a fund of the MGF foreign 

currency by way of back-to-back loans. 

MGF may not grant credit facilities nor act as guarantor on behalf of third 

parties, provided that for the purpose of this restriction (i) the acquisition 

of transferable securities, money market instruments or other financial 

investments referred to in paragraphs A1.6, A1.8 and A1.9 above, in fully or 

partly paid form and (ii) the permitted lending of portfolio securities shall be 

deemed not to constitute the making of a loan. 

MGF undertakes not to carry out uncovered sales transactions of transferable 

securities, money market instruments or other financial instruments referred to 

in paragraphs A1.6, A1.8 and A1.9 above; provided that this restriction shall not 

prevent MGF from making deposits or carrying out accounts in connection with 

financial derivatives instruments, permitted within the limits referred to above. 

01 MGF’s assets may not include precious metals or certificates representing them, 

commodities, commodities contracts, or certificates representing commodities.

71 

P1 

Q1 

R1 

MGF may not purchase or sell real estate or any option, right or interest therein, 

provided that MGF may invest in securities secured by real estate or interests 

therein or issued by companies which invest in real estate or interests therein. 

MGF shall not make any investment which involves the assumption of unlimited 

liability. 

MGF will in addition comply with such further restrictions as may be required by 

the regulatory authorities in any country in which the Shares are marketed. 

5.4.6 Performance return 1 

Fund yTD 1 Year 3 Year 5 Year Since Launch 

MGF-CVF -15.14% -16.15% 76.33% 48.22% 725.97% 

FTSE All World -12.98% -10.12% 79.28% 42.77% 135.49% 

Greater China 

Index 

Fund yTD 6 months 1 Year Since Launch 

MGF-GRF -8.33% -14.07% 0.60% 18.45% 

Composite Index 2 -5.04% -12.34% 3.92% 39.02% 

Fund yTD 6 months 1 Year Since Launch 

MGF-INDF -19.70% -15.02% -18.69% 5.66% 

BSE 100 -20.89% -16.43% -21.14% 21.89% 

1 

Sources: 

1) Morningstar, 2) Bloomberg NAV to NAV, USD, dividend reinvested, as of 30 October 

2011 

2 

Composite benchmarking comprising MSCI World Energy (1/3), MSCI World Material (1/3) 

and FTSE Gold Mines (1/3). 

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

72 section 56 fund details 

5.4.7 Fees for investing in the Target Funds 

Ch charges Remark 

Sales Charge up to 6% of NAV per share Not applicable to the 

for Share Class a 

Funds’investments in 

(no initial charge will be the Target Funds 

levied on investors) 

(see Section 9.1 (a)) 

up to 5% of NAV per share 

for Share Class AA 

(initial charge will be levied 

on investors) 

Redemption Charge Up to 1% of the redemption Not applicable to the 

price if redeem Share Class A Funds’investments in 

within first two years of the Target Funds 

subscribing for the relevant (see Section 9.1 (b)) 

shares. 

no redemption charge will be 

levied in respect of Share Class 

AA. 

Management Fee 1.50% p.a. of NAV for Share Absorbed by the 

Class a 

Manager (see Section 

9.2(a)) 

1.75% p.a. of NAV for Share 

Class AA 

Performance Fee* 8% on the excess of Included in NAV of 

performance target 

target Funds 

Conversion Fee up to 1% of the total not applicable to the 

redemption price, if applicable Funds’investments in 

the Target Funds 

Custodian Fee 0.003% - 0.40% p.a. Included in NAV of 

depending on the country Target Funds 

where the assets are kept. 

Fund Administration Up to 0.5% p.a. of NAV Included in NAV of 

Fee 

target Funds

73 

* Performance Fee of the Target Fund 

Performance fees in respect of the Target Fund may be payable, equivalent to a maximum 

of 20% of such excess return multiplied by the average number of Shares in the relevant 

Share Class in issue during the period by reference to which the fee is payable. Currently, 

the performance fee for the Target Fund is 8% until revised by MGF. 

The target Net Asset Value per Share in each Target Fund for the end of any particular 

financial year will be 110% of the Net Asset Value per Share as at the close of business on 

the last Business Day in the immediate preceding financial year (after taking into account 

the performance fee paid for that financial year) (the “10% Hurdle Return”). 

Target Fund Performance Fee Target Net Asset 

(as a % of the excess return) Value per Share 

Share Class A Share Class AA 

MGF-CVF-GRF 

MGF-GRF 

MGF-INDF 8% 8% 10% Hurdle Return 

The performance fee payable by each Target Fund shall be accrued on each Business Day 

throughout the relevant financial year and is payable as soon as reasonably practicable 

after the end of such financial year. The accrual is made based on the Net Asset Value per 

Share on each Business Day. If it exceeds the 10% Hurdle Return for accrual will be made. 

On each Business Day, the accrual made on the previous Business Day will continue to be 

reversed and a new performance fee accrual will be calculated and made in accordance 

with the above. 

Investors are advised that they will be subjected to higher fees such as performance 

fee, custodian fee and fund administration fee of the Target Funds arising from 

the layered investment structure.

74 section 6 

ADDITIONAL INFORMATION 

IN RELATION TO THE FUND 

6.1 Borrowings and Securities Lending 

Unless otherwise allowed by the SC or by any relevant law, and subject to such terms and 

conditions as the SC or relevant law may prescribe, the Fund is not permitted to borrow to 

finance its activities or to grant or guarantee any loans or enter into a contract to purchase 

investments when it does not have the necessary funds to pay for the purchase. However, 

the Fund may borrow cash for the purposes of meeting redemption request for Units and 

for short term bridging requirements. 

The Funds may participate in the lending of securities within the meaning of the Securities 

Borrowing and Lending Guidelines issued by the SC. 

6.2 Valuation Bases For the Fund’s Investments 

In valuing the Funds’ investments, the Manager will ensure that all the assets of the Funds 

would be valued at fair value and at all times be in compliance with Schedule B of the 

Guidelines and all relevant laws. The valuation bases for the investments of the Funds are 

as follows: 

Collective Investment Schemes 

The value of any investment in collective investment schemes which are quoted on an 

approved exchange shall be calculated/valued based on the last done market price of the 

securities. The Target Funds’ price will be provided to the Manager from the Investment 

Manager of the Target Funds on a daily basis. 

The value of any investment in unquoted collective investment schemes shall be calculated/ 

valued based on the last published repurchase price per Unit. The Target Funds’ price 

will be provided to the Manager from the Investment Manager of the Target Funds on 

a daily basis and where no last published repurchase price is available, the price will be 

determined by the Manager, verified by the auditor of the Funds and approved by the 

Trustee. 

Deposits 

Valuation of investments such as bank bills and placement of deposits placed with banks 

or other financial institutions will be done on a daily basis based on the value of such 

investments and the interest income accrued thereon for the relevant period. 

Foreign Exchange Rate Conversion 

Where the value of an asset of the Fund is denominated in a foreign currency (if any), 

the assets are translated on a daily basis to Ringgit Malaysia using the bid foreign 

exchange rate quoted by either Reuters or Bloomberg, at United Kingdom time 4.00 

p.m. the same day.

75 

Money Market Instruments 

Valuation of investments in money market instruments such as negotiable certificates of 

deposits, structured deposits and bankers’ acceptance shall be done on a daily basis by 

reference to the value of such investments as provided by financial institution that issues 

the investment. 

6.3 Policy in respect of the Valuation Point 

Valuation Point refers to a time(s) on a Business Day which the Manager decides to conduct 

a valuation on the NAV of the Fund. Under normal circumstances, only one valuation is 

conducted on each Business Day. 

A Fund is generally required to be valued every Business Day. However, as the Fund has 

exposures to investments outside of Malaysia, the Fund shall be valued at or before 5.00 

p.m. on the next Business Day (or “T + 1”) because of timing difference between Malaysia 

and Luxembourg (where the Target Fund is domiciled). For example, to determine the NAV 

of the Fund for a particular Monday, the Fund shall be valued only on the next Business 

Day (e.g. Tuesday). The prices used for valuation however, will be the value of the assets of 

the Fund on Monday. 

The daily price of the Fund for a particular Business Day will not be published in the 

newspaper on the next day but will instead be published the next following day (i.e. the 

price will be two (2) days old).

76 section 67 

PERFORMANCE OF THE FUND 

7.1 Performance of Manulife Investment - China Value Fund 

MICVF has been in operation since 7 January 2010 and its financial year end is on 31 

October. 

7.1.1 Average Annual Total Returns of this Fund 

aAVERAGE ANNUAL Total Returns as at 31 oct 2011 

0.00% 

-2.00% 

-4.00% 

-6.00% 

-8.00% 

-10.00% 

-12.00% 

-14.00% 

-16.00% 

-18.00% 

-20.00% 

1 Year Since Inception - 

Fund 1/11/2010 - 31/10/2011 31/10/2011 

Micvf -18.69% -4.25% 

FTSE All World 

Greater China Index -13.84% -4.29 % 

7.1.2 Annual Total Returns of this Fund 

1 Year 

1 November 2010 - Since Inception - 

31 October 2011 31 October 2010 

MICVF -18.69% 18.76% 

FTSE All World Greater China Index -13.84% 9.93% 

Note: Basic calculation and assumption made in calculating the returns 

Performance return = NAV t 

– NAV t-1 

naV t

77 

Annualised Performance return = 1 + (Performance return) 

number of period per year 

total no. of periods 

- 1 

The performance of the feeder fund, Manulife Investment - China Value Fund, was 

down by 18.69% in MYR terms during the period under review, under-performing the 

benchmark’s return (in MYR terms) of -13.84%. In tandem with the target fund, the feeder 

fund did not meet its objective of providing long term capital growth during the period. 

The difference in performance between the target fund and the feeder fund was mainly 

due to the strengthening of MYR, which appreciated 1.5% against the USD during the 

same period. In addition, the feeder fund’s relatively small fund size resulted in high cost 

to income ratio of the fund, which negatively affected the performance. 

7.1.3 Distribution Record 

MICVF has not declared any distribution. 

7.1.4 Portfolio Turnover Ratio (PTR) of the Fund 

Portfolio turnover is a measure of the volume of trading undertaken by a fund in relation 

to the fund’s size. 

PTR = [total acquisitions of the unit trust scheme for the year + total disposal for the year] /2 

average net asset value for the unit trust scheme for the year calculated on a daily basis 

The portfolio turnover is 1.47 times in the financial period from 1 November 2010 to 31 

October 2011 and remain relatively stable over the period under review and declined only 

slightly due to less frequent transaction occurring over the period. 


As at 31 October 2011, the target fund was 96.99% invested in foreign collective 

investment scheme and 3.01% cash and others. 

2011 2010 

Sector Allocation % % 

Foreign collective investment scheme 96.99% 97.72% 

Cash & others 3.01% 2.28% 

Total 100.00% 100.00% 

The asset allocation has been structured to meet the Fund’s objective. 


78 

section 7 


7.2 Performance of Manulife Investment - Global Resources Fund 

MIGRF has been in operation since 7 January 2010 and its financial year end is on 31 

October. 


6.00% 

5.00% 

4.00% 

3.00% 

2.00% 

1.00% 

0.00% 

-1.00% 

-2.00% 

-3.00% 

AVERAGE ANNUAL Total Returns as at 31 oct 2011 


Fund 1/11/2010 - 31/10/2011 31/10/2011 

MiGRf -2.50% -2.41% 

Composite Index* 2.50% 5.49% 

* MSCI World Energy (1/3), MSCI World Materials (1/3) and FTSE Gold Mines (1/3). 


1 Year 



MIGRF -2.50% -1.74% 

Composite Index* 2.50% 7.17% 

* MSCI World Energy (1/3), MSCI World Materials (1/3) and FTSE Gold Mines (1/3). 



– NAV t-1 

naV t

79 




- 1 

The performance of the feeder fund, Manulife Investment - Global Resources Fund, was 

down by 2.5% in MYR terms during the period under review, under-performing the 

benchmark’s return (in MYR terms) of 2.5%. In tandem with the target fund, the feeder 

fund did not meet its objective of providing long term capital growth during the period. 

The difference in performance between the target fund and the feeder fund was due to 

the strengthening of MYR, which appreciated 1.5% against the USD during the same 

period. In addition, the feeder fund’s relatively small fund size resulted in high cost to 

income ratio of the fund, which negatively affected the performance.. 


MIGRF has not declared any distribution. 







October 2011. The declined in PTR was due to increase average net asset value of the Fund 

over the period. 


As at 31 October 2011, the target fund was 99.11% invested in foreign collective investment 

scheme and 0.89% cash and others. 

2011 2010 



Cash & others 0.89% 5.71% 

Total 100.00% 100.00% 

The asset allocation has been structured to meet the Fund’s objective 


80 section 67 


7.3 Performance of Manulife Investment - India Equity Fund 

MIIEF has been in operation since 7 January 2010 and its financial year end is on 31 

October. 


0.00% 

AVERAGE ANNUAL Total Returns as at 31 oct 2011 

-5.00% 

-10.00% 

-15.00% 

-20.00% 

-25.00% 


Fund 1/11/2010 - 31/10/2011 31/10/2011 

MiIEf -20.17% -6.39% 

Bombay Stock Exchange 

100 Index -22.09% -5.30% 


1 Year 



MIIEF -20.17% 11.54% 

Bombay Stock Exchange 100 Index -22.09% 16.62% 



– NAV t-1 

naV t

81 




- 1 

The performance of the feeder fund, Manulife Investment – India Equity Fund, was down 

20.17% in MYR terms during the period under review, outperforming the benchmark’s 

return (in MYR terms) of -22.09%. In tandem with the target fund, the feeder fund met 

its objective of providing long term capital growth during the period. 

The difference in performance between the target fund and the feeder fund was mainly 

due to the strengthening of MYR, which appreciated 1.5% against the USD during the 

same period. 


MIIEF has not declared any distribution. 







October 2011 and remain relatively stable over the period under review and declined 

only slightly due to less frequent transaction occurring over the period. 


As at 31 October 2011, the target fund was 95.19% invested in foreign collective 

investment scheme and 4.81% cash and others. 

2011 2010 



Cash & others 4.81% 2.52% 

Total 100.00% 100.00% 

The asset allocation has been structured to meet the Fund’s objective. 


82 section 8 

HISTORICAL FINANCIAL HIGHLIGHTS 

OF THE FUND 

8.1 Manulife Investment - China Value Fund 

8.1.1 Statement of Comprehensive Income for the financial year ended 31 

October 2011 

Financial Period 

Financial From 07.01.2010 

Fin year (Date Of 

Ended Commencement) 

31.10.2011 To 31.10.2010 

RM 

RM 

INCOME 

Interest income from deposits with 

licensed financial institutions 417 951 

Dividend income 250 - 

Net realised gain on sale of financial assets at fair 

value through profit or loss 266,809 109,613 

Unrealised (loss)/gain on sale of financial assets at 

fair value through profit or loss (482,915) 601,932 

Unrealised foreign exchange gain/(losses) on 

financial assets at fair value through profit or loss 19,744 (117,158) 

TOTAL NET (LOSS)/INCOME (195,695) 595,338 

EXPENSES 

Management fee, net of rebate 9,113 5,739 

Trustee’s fee 18,000 13,711 

Auditor’s fee 5,500 5,500 

Tax agent’s fee 3,500 3,500 

Administration expenses 7,628 1,780 

TOTAL OPERATING EXPENSES 43,741 30,230 

NET (LOSS)/INCOME BEFORE TAXATION (239,436) 565,108 

TAXATION - - 

NET (LOSS)/INCOME AFTER TAXATION AND 

tOTAL COMPREHENSIVE (LOSS)/INCOME FOR 

thE FINANCIAL YEAR/PERIOD (239,436) 565,108 

NET (LOSS)/INCOME AFTER TAXATION IS MADE 

uP OF: 

Realised income 223,735 80,334 

Unrealised (loss)/income (463,171) 484,774 

(239,436) 565,108

83 

8.1.2 Statement of Financial Position as at 31 October 20112011 

ASSETS 

CURRENT ASSETS 

2011 2010 

RM 

RM 

Financial assets at fair value through profit or 

loss (Investments) 4,282,198 3,086,582 

Cash and bank balances 21,497 - 

Other receivables 517,457 83,442 

tOTAL ASSETS 4,821,152 3,170,024 

LIABILITIES 

CURRENT LIABILITIES 

Amount payable on sale of financial assets 

at fair value through profit or loss 391,354 - 

Amount due to Manager 1,008 981 

Amount due to Trustee 1,529 1,529 

Other payables and accruals 12,501 9,000 

tOTAL LIABILIITIES 406,392 11,510 

NET ASSETS ATTRIBUTABLE TO UNIT HOLDERS 4,414,760 3,158,514 

EQUITY 

Unit holders’ capital 4,089,088 2,593,406 

Retained earnings 325,672 565,108 

tOTAL EQUITY 4,414,760 3,158,514 

NUMBER OF UNITS IN CIRCULATION 9,531,720 5,544,119 

NET ASSET VALUE PER UNIT 0.4632 0.5697 

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

and the annual report is available upon request. 


84 section 8 


OF THE FUND 

8.2 Manulife Investment - Global Resources Fund 


October 2011 





31.10.2011 To 31.10.2010 

Rm 

Rm 

INCOME 

Interest income from deposits with licensed 

financial institutions 173 265 

Net realised loss on sale of financial assets 

at fair value through profit or loss (7,480) (7,875) 

Unrealised capital (losses)/gain on sale of 

financial assets at fair value through profit or loss (122,328) 88,174 



TOTAL NET (LOSS)/INCOME (112,431) 23,938 

EXPENSES 

Management fee, net of rebate 1,546 986 

Trustee’s fee 18,000 13,711 





NET LOSS BEFORE TAXATION (145,243) (830) 

TAXATION - - 

NET LOSS AFTER TAXATION AND TOTAL 

COMPREHENSIVE LOSS FOR THE 

FINANCIAL YEAR/PERIOd (145,243) (830) 

NET LOSS AFTER TAXATION IS 

MADE UP OF: 

Realised loss (40,119) (32,378) 

Unrealised (loss)/income (105,124) 31,548 

(145,243) (830)

85 


ASSETS 


2011 2010 

RM 

RM 


loss (Investments) 1,882,693 763,093 

Other receivables - 32,852 

Cash and bank balances 34,011 23,849 

tOTAL ASSETS 1,916,704 819,794 

LIABILITIES 


Amount due to Manager 135 71 




NET ASSETS ATTRIBUTABLE TO UNIT HOLDERS 1,899,430 809,194 

EQUITY 

Unit holders’ capital 2,045,503 810,024 

Retained earnings (146,073) (830) 

tOTAL EQUITY 1,899,430 809,194 






86 section 8 


OF THE FUND 

8.3 Manulife Investment - India Equity Fund 


October 2011 





31.10.2011 To 31.10.2010 

RM 

RM 

INCOME 

Interest income from deposits with licensed 

financial institutions 2,722 1,854 

Net realised (losses)/gain on sale of financial 

assets at fair value through profit or loss (337,767) 23,683 

Unrealised capital (losses)/gain on sale of 

financial assets at fair value through profit or loss (1,430,762) 871,638 



TOTAL NET (LOSS)/INCOME (1,640,474) 598,437 

EXPENSES 

Management fee, net of rebate 8,439 4,384 

Trustee’s fee 18,000 13,711 





NET (LOSS)/INCOME BEFORE TAXATION (1,683,826) 568,095 

TAXATION - - 

NET (LOSS)/INCOME AFTER TAXATION AND 

tOTAL COMPREHENSIVE (LOSS)/INCOME 

FOR THE FINANCIAL YEAR/PERIOD (1,683,826) 568,095 

NET (LOSS)/INCOME AFTER TAXATION IS 

MADE UP OF: 

Realised loss (378,397) (4,805) 

Unrealised (loss)/income (1,305,429) 572,900 

(1,683,826) 568,095

87 


ASSETS 


2011 2010 

RM 

RM 


loss (Investments) 6,428,093 4,943,386 

Other receivables 139,614 91,781 

Cash and bank balances 199,428 46,796 

tOTAL ASSETS 6,767,135 5,081,963 

LIABILITIES 


amount due to Manager 552 396 




NET ASSETS ATTRIBUTABLE TO UNIT HOLDERS 6,752,554 5,071,038 

EQUITY 

Unit holders’ capital 7,868,285 4,502,943 

Retained earnings (1,115,731) 568,095 

tOTAL EQUITY 6,752,554 5,071,038 






88 

section 9 

FEES AND CHARGES 

9.1 Charges Directly Incurred 

The following describes the charges that investors may directly incur when buying or 

redeeming Units: 

(a) Sales Charge 

a sales charge may be imposed on the purchase of Units of the Funds and may be 

utilised by the Manager to pay the marketing, advertising and distribution expenses 

of the Funds. 

the sales charge shall be a percentage of the NAV per Unit of the Funds and are 

separately disclosed as follows to enable investors to understand, compare and to 

make an informed decision on the preferred distribution channel: 

Distribution 

channels* 

Iuta 

utC 

the Manager 

Maximum Sales Charge** 

on the NAV per Unit of the Fund*** 



Up to 5.50% of the NAV per Unit 

* Investors may subscribe for Units via one or more of the distribution channels. 

** All sales charges will be rounded up to two (2) decimal places. 

*** Investors may negotiate for a lower sales charge. 

Differing sales charges may be levied depending on the distribution channels and the 

distributor within each distribution channel, subject to the maximum sales charge 

stipulated above. This is due to the different levels of services provided by each 

distribution channel and / or the size of the investment undertaken. 

Note: Please refer to Section 10.4 for an illustration on how the Selling Price is 

calculated. 

MICVF, MIGRF and MIIEF’s investment into their respective Target Fund will be at the 

Target Fund’s NAV, or if any sales charge is imposed at the Target Fund level, it will be 

rebated back to the Fund in full. Hence, there is no double-charging of sales charge. 

(b) Redemption Charge 

there is no Redemption Charge imposed by the Manager on the redemption of Units. 

Note: Please refer to Section 10.5 for an illustration on how the Redemption Price is 

calculated. 

The Target Funds may impose certain redemption charges. However, it is not applicable 

to the Funds’investments in the Target Funds.

89 

(c) Transfer Fee 

a RM5 transfer fee will be levied by the Manager for each transfer of Units upon 

receipt of a transfer request from the investor. 

(d) Switching Fee 

switching out of the Fund to other funds managed by the Manager will not incur any 

switching fee. 

When the investor switches from the Fund to another fund managed by the Manager, 

switching will be based on the NAV per unit of the other funds. 

9.2 Fees And Expenses Indirectly Incurred 

(a) Annual Management Fee 

The annual management fee for a Fund shall be up to 1.80% per annum of the NAV of 

the Fund. This fee is calculated and accrued daily and payable monthly by the Fund to the 

Management Company. The Manager utilizes the annual management fee to, among 

others, defray its staff salary and daily operational and administrative expenses. There 

will be no double charging of any annual management fee for the Fund since annual 

management fee charged by the Target Fund will be fully absorbed by the Manager. 

Please note that the example below is for illustration only: 

assuming that the NAV of a Fund is RM10,000,000 (before deducting the annual 

management fee and the annual trustee fee for the day) and with an annual 

management fee of 1.80% per annum, then the calculation of the annual management 

fee for the day would be as follows: 

annual Management Fee for the day 

= NAV x Annual Management Fee 

365 days 

= RM10,000,000 x 1.80% 

365 days 

= RM493.15 

 

 

Management 

Fee 

Management 

Fee charged 

by the 

Manager 

The 

Funds 

X% out of the 

Management 

Fee paid to 

the other 

Collective 

Investment 

Schemes 

Other 

Collective 

Investment 

Schemes 

Management Fee charged by the other Collective Investment Schemes will be paid 

out of the Management Fee charged by the Manager.

90 

section 9 


(b) 


the Fund pays the Trustee an annual trustee fee of 0.08% per annum of the NAV 

of the Fund, subject to a minimum fee of RM18,000 per annum (excluding foreign 

custodian fees and charges). In addition to the annual trustee fee, the Trustee 

may be reimbursed by the Fund for any expenses properly incurred by it in the 

performance of its duties and responsibilities. 

the annual trustee fee is calculated and accrued daily and payable monthly to the 

Trustee. 


assuming that the NAV of a Fund is RM10,000,000 (before deducting the annual 

management fee and the annual trustee fee for the day) and with an annual trustee 

fee of 0.08% per annum, then the calculation of the annual trustee fee for the day 

would be as follows: 

annual Management Fee for the day 

= NAV x Annual Trustee Fee 

365 days 

= RM10,000,000 x 0.08% 

365 days 

= RM21.92 

(c) 

Fund Expenses 

In administering a Fund, only fees and expenses that are directly related and 

necessary to the business of the Fund may be charged to the Fund. These include 

(but are not limited to) the following: 

(i) taxes and other duties charged on the Fund by the Government and/or other 

authorities; 

(ii) costs, fees and expenses properly incurred by the auditors appointed for the Fund; 

(iii) costs, fees and expenses incurred for the valuation of any investment of the Fund 

by independent valuers for the benefit of the Fund; 

(iv) costs, fees and expenses incurred for any modification of the Deed save where 

such modification is for the benefit of the Manager and/or the Trustee; 

(v) costs, fees and expenses incurred for any meeting of the Unit Holders save where 

such meeting is convened for the benefit of the Manager and/or the Trustee;

91 

(vi) 

(vii) 

(viii) 

(ix) 

(x) 

(xi) 

(xii) 

(xiii) 

(xiv) 

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 Manager 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 Manager 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 Manager decides otherwise; 

costs, fees and expenses deemed by the Manager 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; and 

where the custodial function is delegated by the Trustee, charges and fees 

paid to sub-custodians. 

Expenses related to the issuance of this Master Prospectus will be borne by the 

Manager. 

9.3 Policy on Stockbroking Rebates and Soft Commissions 

The Manager or any delegate thereof will not retain any form of rebate or soft commission 

from, or otherwise share in any commission with, any broker in consideration for directing 

dealings in the investments of the Funds. 

However, soft commissions may be retained by the Manager and its delegate for payment 

of goods and services such as research material, data and quotation services and 

investment management tools, which are of demonstrable benefit to Unit Holders.

92 

section 9 


9.4 Total Annual Expenses Incurred by a Fund in the Preceding Financial 

Year 

MICVF 

As at 31 Oct 2010 

Management Fee Trustee Fee Other Expenses Total Annual 

Expenses 

RM % RM % RM % RM % 

5,739 0.28 13,711 0.67 10,780 0.53 30,230 1.48 

As at 31 Oct 2011 


Expenses 


9,113 0.34 18,002 0.68 16,626 0.63 43,741 1.65 

Illustration: 

MER = Management Fee + Trustee Fee + Other Expenses 

average net asset value of the Fund calculated on daily basis 

MER = 1.65% 

The MER for the last financial year was higher compared with the previous financial 

year due to lower average NAV which has resulted in a higher MER for certain nonvariable 

expenses during the financial year. 

MIGRF 

As at 31 Oct 2010 


Expenses 


986 0.10 13,711 1.43 10,071 1.06 24,768 2.60

93 

As at 31 Oct 2011 


Expenses 


1,546 0.09 17,995 1.09 13,271 0.81 32,812 2.00 

Illustration: 



MER = 2.00% 

The MER for the last financial year was lower compared with the previous financial 

year due to higher average NAV despite which has resulted in a lower MER for certain 

non-variable expenses during the financial year. 

MIIEF 

As at 31 Oct 2010 


Expenses 


4,384 0.10 13,711 0.32 12,247 0.29 30,342 0.71 

As at 31 Oct 2011 


Expenses 


8,439 0.11 18,002 0.23 16,911 0.22 43,352 0.56 

Illustration: 



MER = 0.56% 

The MER for the last financial year was lower compared with the previous financial 

year due to higher average NAV despite which has resulted in a lower MER for certain 

non-variable expenses during the financial year. 

There are fees and charges involved and investors are advised to consider the 

fees and charges before investing in the Funds.

94 section 10 

TRANSACTION INFORMATION 

10.1 Computation of NAV and NAV per Unit 

The NAV of a Fund is determined by deducting the value of the Fund’s liabilities 

from the value of the Fund’s assets, at a 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 annual management fee and the annual trustee fee 

for the relevant day. 


securities Investment 100,000,000 

Add : Other Assets (including cash) & Income 3,000,000 

Less : Liabilities 500,000 

naV before deducting annual management fee and 

annual trustee fee for the day 102,500,000 

Less : Annual management fee for the day 5,054.80 

(at 1.80% per annum calculated based on the NAV) 

RM102,500,000.00 X 1.80% / 365 days 

Less : Annual trustee fee for the day 224.66 

(at 0.08% per annum calculated based on the NAV 

subject to a minimum of RM18,000 per annum) 

RM102,500,000.00 X 0.08% / 365 days 

naV 102,494,720.54 

The NAV per Unit of the Fund 

MICVF MIGRF MIIEF 

The NAV per Unit of a Fund is calculated by dividing the Total NAV of the Fund by the 

number of Units in circulation at the end of each Business Day. 

RM

95 

In the event that there are 200,000,000 Units of the Fund in circulation at the point of 

valuation, the NAV per Unit of the Fund shall therefore be calculated as follows: 

naV 102,494,720.54 

Divide: Units in Circulation 200,000,000 

naV per Unit of a Fund 0.5125 * 

* NAV per Unit will be rounded up to four (4) decimal places for the purposes of 

publication of the NAV per Unit. 

10.2 Unit Pricing 

The Manager adopts a Single Pricing Regime in calculating a Unit Holder’s investments into 

and redemption of Units. This means that all purchases and redemptions are transacted 

on a single price (i.e. NAV per Unit). Investors would therefore purchase and redeem Units 

at NAV per Unit. The Selling Price per Unit and Redemption Price per Unit are based on 

Forward Pricing. 

10.3 Incorrect Pricing 

The Manager shall take immediate remedial action to rectify any incorrect valuation and/ 

or pricing of the Funds or Units of the Funds. Where such error has occurred, monies shall 

be reimbursed in the following manner:- 

(a) in the event of over valuation or pricing, by the Manager to the Funds (if there is a 

redemption of Units) and/or to the Unit Holders who purchase Units at a higher price; or 

(b) in the event of under valuation or pricing, by the Manager to the Funds (if there is 

a sale of Units) and/or to the Unit Holders or former Unit Holders who redeem at a 

lower price. 

Notwithstanding the foregoing, unless the Trustee otherwise directs, no reimbursement 

shall be made save and except where an incorrect pricing: – 

(a) is equal or more than zero point five per centum (0.5%) of the NAV per Unit; or 

(b) results in a sum total of Ringgit Malaysia Ten (RM10) or more to be reimbursed to a 

Unit Holder for each sale or redemption transaction. 

The Manager shall have the right to amend, vary or revise the abovesaid limits or threshold 

from time to time and disclose such amendment, variation or revision in the Master Prospectus. 

RM

96 section 10 

TRANSACTION INFORMATION 

10.4 Calculation of Selling Price 

The Selling Price per Unit is calculated based on the NAV per Unit of a Fund at the next 

valuation point after the relevant application and payment is received by the Manager (i.e. 

Forward Pricing). Any Sales Charge payable by the Unit Holder would be calculated as a 

percentage of the NAV per Unit of the Fund. 

For illustration purposes, assuming the following: 

Amount Invested by Unit Holder 

Sales Charge 

NAV per Unit 

RM10,000 

5.50% of NAV per Unit 

RM0.5000 

The investment amount, number of Units purchased and Sales Charge payable by the Unit 

Holder are as follows: 

Amount Invested by Unit Holder 10,000 

Add: 

Sales Charge levied by distributor @ 5.50% 550 

Total amount paid by Unit Holder 10,550 

The total number of Units that will be allocated to Unit Holder = Amount Invested 

NAV per Unit 

= RM10,000 

RM0.5000 

= 20,000 Units 

RM

97 

10.5 Calculation of Redemption Price 

The Redemption Price per Unit is calculated based on the NAV per Unit of a Fund at the 

next valuation point after the request for redemption is received by the Manager (i.e. 

Forward Pricing). 

The Manager has no intention to impose any Redemption Charge during the duration of 

this Master Prospectus. 


Number of Units to be redeemed 20,000 


nil 

NAV per Unit 

RM0.5000 

The redemption amount shall be as follows: 

Number of Units to be redeemed 20,000 

Multiply by NAV per Unit 

RM0.5000 

Total amount payable to Unit Holder 

RM10,000.00

98 section 11 

TRANSACTION DETAILS 

11.1 Information on Purchase of the Units 

An investor who wishes to invest in the Funds must be willing to adhere to the following 

eligibility and procedures: 

(a) Individual Investor 

For Single Applicant 

the applicant must be 18 years of age and above as the date of application and not a 

bankrupt. 

For Joint Applicants 

For joint applicants, the principal holder must be 18 years of age and above. The joint 

applicant can be anyone of any age including a minor. 

(b) Corporate Investor 

Including but not limited to a company, co-operative society, sole proprietor, institution 

or partnership. 

however, the Manager has the right to reject an application on reasonable grounds. 

(c) The Minimum Investment 

the minimum initial investment for a Fund is RM1,000 and the minimum additional 

investment is RM100.00 or such amounts as the Manager or the Approved Distributor 

may decide from time to time. 

(d) The Fund’s Master Application Form 

a Unit Holder, after completing the Master Application Form, which can be obtained 

from the Master Prospectus, at the Manager’s Office and website at www.manulife. 

com.my, or from any of the Manager’s authorised agents, must attach the following 

documents: 

Individual Investor 

For Single Applicant 

Certified true copy/verified copy of NRIC or passport for foreign investor.

99 

For Joint Applicants 

Certified true copy/verified copy of NRIC or passport for foreign investor. 

For second holder age 12 and below, a certified true copy/verified copy of the Birth 

Certificate. 

Corporate Investor 

• A certified true copy of Certificate of Incorporation /Business Registration/ Licence 

(Form 8 or Form 9); 

• A certified true copy of Form 24 & 49; 

• A certified true copy of the Memorandum & Article of Association/Constitution/ 

By Laws; 

• A certified true copy of the Directors’ Resolution approving the investment in the 

Funds together with a list of authorised personnel and their specimen signatures 

to effect any instructions or transactions in respect of the Funds; 

• Any other approvals necessary from the relevant authorities. 

11.2 Payment Methods 

Investment payment should be made payable to “Manulife Unit Trusts Berhad – Sales 

Collection A/C” and remitted to the Manager’s account in Ringgit Malaysia. 

Details of the Manager’s bank account are as follows: 

Bank 

: Malayan Banking Berhad 

Payee’s Name : Manulife Unit Trusts Berhad – Sales Collection A/C 

Account No. : 5143 2933 8410 

Payment for investment may be made to the Manager’s registered office or any of its 

regional support centres, or to any of its Approved Distributors. 

Investors are advised NOT to make payment in cash when purchasing Units of a 

Fund via any institution/retail agents.

100 section 11 


11.3 Processing of Purchase/Redemption/Switching Request 

Purchase Request 

Purchase of Units will be based on the Manager’s NAV per Unit on the same Business Day 

provided that the Master Application Form and complete documentation are received 

by the Manager before 3.00 p.m. (the cut-off time) on a Business Day at the Manager’s 

registered office or any of its regional support centres as set out in Section 23, the Master 

Application Form will be processed at the close of the Business Day, which is available on 

the next Business Day. 

If the Master Application Form and complete documentation are received by the Manager 

after the cut-off time or on a non-Business Day at the Manager’s registered office or any 

of its regional support centres as set out in Section 23, the Master Application Form will 

be processed on the next Business Day and the Units will be based on the Manager’s NAV 

per Unit on the next Business Day. 

For purchase transaction made via the IUTAs, the transaction is subject to the terms and 

conditions of the respective IUTAs. 

Redemption Request 

Any redemption request received by the Manager before the cut-off time on a Business 

Day at the Manager’s registered office or any of its regional support centres as set out in 

Section 23 will be processed based on the NAV per Unit calculated on the same Business 

Day, which is available on the next Business Day. 

If the Redemption/Cooling-Off Withdrawal Form and complete documentation are received 

by the Manager after the cut-off time or on a non-Business Day at the Manager’s registered 

office or any of its regional support centres as set out in Section 23, the Redemption/Cooling- 

Off Withdrawal Form will be processed on the next Business Day and the Units will be based 

on the Manager’s NAV per Unit at the end of the next Business Day. 

For redemption transaction made via the IUTAs, the transaction is subject to the terms and 


Switching Request 

Any switching request received by the Manager before the cut-off time on a Business 

Day at the Manager’s registered office or any of its regional support centres as set out in 

Section 23 will be processed based on the NAV per Unit calculated on the same Business 

Day, which is available on the next Business Day. 

If the Switch Form and complete documentation are received by the Manager after the 

cut-off time or on a non-Business Day at the Manager’s registered office or any of its 

regional support centres as set out in Section 23, the Switch Form will be processed on 

the next Business Day and the Units will be based on the Manager’s NAV per Unit on the 

next Business Day.

101 

For switching transaction made via the IUTAs, the transaction is subject to the terms and 


11.4 Making Additional or Regular Investment 

Investors are allowed to make further additional investments or regular investments as they 

wish and their investment will be calculated based on the prevailing Selling Price per Unit (i.e. 

Forward Pricing) for the day. The minimum additional investment amount is RM100. 

11.5 Information on Redemption of the Units 

Unit Holders may redeem all or part of the Units held on any Business Day by completing 

the Request for Redemption/Cooling-Off Withdrawal Form, which can be obtained from 

the Manager’s Office or website or from any of the Manager’s registered office, any of its 

regional support centres. 

There is no restriction on the frequency of the number of Units to be redeemed for the 

Funds. However, any redemption of the Funds is subject to a minimum of 500 Units at any 

one time. 

For partial redemptions, the minimum balance of Units after the redemption is 500 Units 

(“Minimum Investment Balance”). However, the Manager shall not be bound to comply 

with any request for redemption of Units if the balance of the Units held by the investor 

after the redemption is less than the Minimum Investment Balance. 

Investors should be aware that the Target Funds impose a maximum of 10% on the 

total number of units that can be redeemed on any dealing day. In a situation where 

requests are received on any dealing day for the redemption of more than 10% of the 

total number of units then in issue in the relevant Target Funds, the redemption will be 

handled on a pro-rated basis on the dealing day. Any redemption in excess of such 10% 

limit may be deferred to the next dealing day when such redemptions will be effected in 

priority to later requests. 

With a view to protecting the interest of the Unit Holders, the Manager with the consent 

of the Trustee, may use the Funds to borrow cash on a temporary basis for the purpose of 

meeting redemption request. For further details, please refer to Section 6.1. 

Redemption proceeds will be paid to the Unit Holders within 10 days from the date of 

receipt of the redemption request by the Manager. 

The Manger reserves the right to vary the mode of redemption from time to time, and shall 

be communicated to the Unit Holders in writing.



11.6 Cooling-Off Period 

The cooling-off period is only applicable to any person investing for the first time in any 

unit trust funds managed by the Manager and excludes corporations/institutions, staff of 

the Manager and persons dealing in unit trust of the Manager. Unit Holders have the right, 

within six (6) Business Days from the day of the receipt by the Manager of their Master 

Application Form, to call for a withdrawal of their investments. The total amount of the 

money initially invested, i.e.: 

(a) the NAV per Unit on the day the Units were first purchased; and 

(b) the sales charge per unit originally imposed on the day the Units were purchased. 

will be refunded to the Unit Holder within 10 days from the receipt of the Redemption/ 

Cooling-Off Withdrawal Form by the Manager. 

Withdrawal proceeds will only be paid to the Unit Holders once the Manager has received 

cleared funds for the original investment. For Unit Holders who pay by cheque, the refund 

will be made upon clearance of the said cheque. 


An investor investing with the Manager for the first time invests RM10,000 in a Fund on 17 

October 2011 at the Selling Price per Unit of RM0.5000 and paid a sales charge of 5.50% 

as follows: 

Amount Invested by Unit Holder 10,000 

Add: 

Sales Charge levied by distributor @ 5.50% 550 

Total amount paid by Unit Holder 10,550 

The total number of Units that will be allocated to Unit Holder = Amount Invested 

NAV per Unit 

= RM10,000 

RM0.5000 

= 20,000 Units 

On 20 October 2011 (within the Cooling-off Period), the investor decides to withdraw his 

investment by exercising his cooling-off right. 

RM

103 

The amount to be refunded to the investor shall be: 

= the investment amount at NAV of the Unit on 17 October 2011 + Sales Charge paid by 

the investor on 17 October 2011 

= (20,000 Units x RM0.5000) + RM550 

= RM10,550 

11.7 Transfer of Units 

Investors are allowed to transfer all or part of their Units to another person, subject to 

the conditions as stipulated in the Deed, by completing a Transfer Form and signed by 

both parties (transferor and transferee). The Manager may refuse to register any transfer 

of a Unit in its sole and absolute discretion. A Transfer Fee of not more than RM5 may be 

charged for each transfer and the minimum transfer amount is 500 Units. 

For a transfer request made via the IUTAs, the transaction is subject to the terms and 


11.8 Switching Facility 

Investors may switch all or part of the Units held between a Fund and the other funds 

managed by the Manager on any Business Day by completing the Switch Form. 

The switching facility is subject to the following conditions: 

(a) investors of the Fund are allowed to switch their investments into and out of all other 

funds managed by the Manager only; 

(b) investors are allowed to switch their investments into and out of all other funds 

managed by the Manager subject to the availability of Units; 

(c) the minimum number of Units to be switched out from the Fund to the other funds is 

1,000 Units, provided the amount in Ringgit Malaysia meets the minimum investment 

amount of the other funds; 

(d) for partial switching, the minimum balance of Units after the switching is 500 Units 

(Minimum Investment Balance). However, the Manager shall not be bound to comply 

with any request for redemption of Units if the balance of Units held after the 

switching is less than the Minimum Investment Balance; 

(e) when the investor switches from the Fund to other funds, there is no switching fee. 

The Manager may at its absolute discretion vary the terms and conditions of the 

switching facility.



11.9 Unclaimed Moneys 

Any income distribution unclaimed by the Unit Holders after 6 months from the income 

distribution date (the “Period”) shall be reinvested by the Manager on behalf of the Unit 

Holders in additional Units of the Funds based on the NAV per Unit of the Funds on the 

first Business Day following the expiry of the Period. 

For other cases, including redemption proceeds payable to Unit Holders who have 

requested for full or partial redemption of their investments in the Funds that remain 

unclaimed after 12 months shall be lodged with the Registrar of Unclaimed Moneys in 

accordance with the provisions of the Unclaimed Money Act, 1965 (as may be amended 

from time to time). 

11.10 Income Distribution and Reinvestment Policy 

The Fund endeavours to distribute income, if any, on an annual basis. 

Unit Holders may choose to receive or reinvest any income distribution declared as follows: 

(a) income distribution will be reinvested into additional Units of the Fund. No sales 

charge will be imposed; or 

(b) the income distribution will be credited directly into the Unit Holder’s bank account. 


(a) no distribution choice is made on the Fund’s Master Application Form; or 

(b) the income distribution amount is less than RM50 or such amount as may be 

determined by the Manager from time to time. 

The income distribution to be reinvested into additional Units of the Fund is based on the 

NAV per Unit as at the 1 st Business Day when Units are quoted ex-entitlement. Allotment 

of such Units shall be within 2 weeks thereafter. 

11.11 Anti-Money Laundering Policies and Procedures 

In order to comply with the Anti-Money Laundering And Anti-Terrorism Financing Act 2001 

(Act 613) (AMLA) and the relevant policies, procedures, guidelines and/or regulations aimed 

at the prevention of money laundering, the Manager will be required to obtain satisfactory 

evidence of customer’s identity and have effective procedures for verifying the information 

of customers. The Manager conducts ongoing due diligence and scrutiny of customers’ 

identity and his/her investment objectives which may be undertaken throughout the course 

of the business relationship to ensure that the transactions being conducted are consistent 

with the Manager’s knowledge of the customer, its business and its risk profile.

105 

The Manager also reserves the right to request such information as is necessary to verify 

the source of the payment. The Manager may refuse to accept the application and the 

subscription monies if an applicant delays in producing or fails to produce any information 

required for the purposes of verification of identity or source of funds. 

A transaction or a series of transactions shall be considered as ‘suspicious’ if the transaction 

in question is inconsistent with the customer’s known transaction profile or does not 

make economic sense. Suspicious transactions shall be submitted directly to the Financial 

Intelligence Unit of Bank Negara Malaysia. 

Personal Data 

Personal information provided by or relating to investors/ Unit Holders may be disclosed, 

processed, used, stored and/ or transferred by/ to the Manager, Manager’s agents/ 

delegates/ services providers, within or outside Malaysia, for purposes of the provision of 

any services related to the Fund. 

Investors are advised not to make payment in cash when purchasing Units of the 

Fund via any institutional/retail agent.


sALIENT TERMS OF THE DEED 

12.1 Rights and Liabilities of Unit Holders 

12.1.1 Rights of Unit Holders 

A Unit Holder has the right, among others, to the followings: 

(a) To receive the distribution of income, participate in any increase in the value of the 

Units and to other such rights and privileges as set out under the Deed for a Fund; 

(b) To call for Unit Holders’ meetings, and to vote for the removal of the Trustee or the 

Manager through a special resolution; 

(c) To exercise the cooling-off right (if applicable); and 

(d) To receive annual and interim reports. 

However, a Unit Holder would not have the right to require the transfer to the Unit Holder 

of any of the investments of a Fund. Neither would a Unit Holder have the right to interfere 

with or question the exercise by the Trustee or the Manager on his behalf, of the rights of 

the Trustee as trustee of the investments of the Fund. 

12.1.2 Liabilities of Unit Holders 

(a) No Unit Holder is liable for any amount in excess of the purchase price paid for the 

Units as determined pursuant to the Deed at the time the Units were purchased; and 

(b) Unit Holders shall not be under any obligation to indemnify the Trustee and/or the 

Manager in the event that the liabilities incurred by the Trustee and the Manager in 

the name of or on behalf of a Fund pursuant to and/or in the performance of the 

provisions of the Deed exceed the NAV of the Fund, and any right of indemnity of the 

Trustee and/or the Manager shall be limited to recourse to the Fund. 

12.2 Provisions regarding Unit Holders Meetings 

12.2.1 Quorum Required for Convening a Unit Holders Meeting 

The quorum required for a meeting of the Unit Holders shall be five (5) Unit Holders, whether 

present in person or by proxy, provided always that the quorum for a meeting of the Unit 

Holders convened for the purpose of voting on a special resolution shall be five (5) Unit 

Holders, whether present in person or by proxy, who must hold in aggregate at least twenty 

five per centum (25%) of the Units in circulation at the time of the meeting, and provided 

further that if a Fund has five (5) or less Unit Holders, the quorum required for a meeting of 

the Unit Holders of the Fund shall be two (2) Unit Holders, whether present in person or by 

proxy; if the meeting has been convened for the purpose of removing the Manager and/or 

the Trustee, the Unit Holders present in person or by proxy must hold in aggregate at least 

twenty five per centum (25%) of the Units in circulation at the time of the meeting.

107 

12.2.2 Unit Holders meeting convened by Unit Holders 

Unless otherwise required or allowed by the relevant laws, the Manager shall, within 

twenty-one (21) days of receiving an application from not less than fifty (50) or one-tenth 

(1/10) of all the Unit Holders, whichever is less, summon a meeting of the Unit Holders by: 

(a) sending by post at least seven (7) days before the date of the proposed meeting a 

notice of the proposed meeting to all the Unit Holders; and 

(b) publishing at least fourteen (14) days before the date of the proposed meeting an 

advertisement giving notice of the proposed meeting in a national language newspaper 

published daily and another newspaper approved by the relevant authorities. 

The Unit Holders may apply to the Manager to summon a meeting for any purpose 

including, without limitation, for the purpose of: 

(a) requiring the retirement or removal of the Manager; 

(b) requiring the retirement or removal of the Trustee; 

(c) considering the most recent financial statements of a Fund; 

(d) giving to the Trustee such directions as the meeting thinks proper; or 

(e) considering any matter in relation to the Deed, 

provided always that the Manager shall not be obliged to summon such a meeting unless 

application has been received from not less than fifty (50) or one-tenth (1/10) of all the 

Unit Holders, whichever is the lesser number. 

12.2.3 Unit Holders meeting convened by Manager or Trustee 

The Manager or Trustee may convene a Unit Holders’ meeting by giving Unit Holders 

written notice in the manner prescribed by the Deed or the relevant laws.

108 

section 12 


12.3 Termination of a Fund 

12.3.1 Circumstances that may lead to the termination of a Fund 

A Fund may be terminated or wound up should the following occur:- 

(a) The SC’s approval is revoked under Section 212(7)(A) of the Act; 

(b) A special resolution is passed at a Unit Holders’ meeting to terminate or wind up the 

Fund, following occurrence of events stipulated under Section 301(1) of the Act and 

the court has confirmed the resolution, as required under Section 301(2) of the Act; 

(c) A special resolution is passed at a Unit Holders’ meeting to terminate or wind up the 

Fund; 

(d) The Fund has reached its maturity date as specified in the Deed; and 

(e) The effective date of an approved transfer scheme (if any) has resulted in the Fund, 

which is the subject of the transfer scheme, being left with no asset/property. 

12.3.2 Procedure for the Termination of a Fund 

Upon the termination of a Fund, the Trustee shall: 

(a) sell all the assets of the Fund then remaining in its hands and pay out of the Fund 

any liabilities of the Fund; such sale and payment shall be carried out and completed 

in such manner and within such period as the Trustee considers to be in the best 

interests of the Unit Holders; and 

(b) from time to time distribute to the Unit Holders, in proportion to the number of Units 

held by them respectively: 

(i) the net cash proceeds available for the purpose of such distribution and derived 

from the sale of the investments and assets of the Fund less any payments for 

liabilities of the Fund; and 

(ii) any available cash produce; 

provided always that the Trustee shall not be bound, except in the case of final distribution, 

to distribute any of the moneys for the time being in his hands the amount of which is 

insufficient for payment to the Unit Holders of RM Fifty (0.50) sen in respect of each Unit 

and provided also that the Trustee shall be entitled to retain out of any such moneys

section 9 


109 

in his hands full provision for all costs, charges, taxes, expenses, claims and demands 

incurred, made or anticipated by the Trustee in connection with or arising out of the 

winding-up of the Fund and, out of the moneys so retained, to be indemnified against any 

such costs, charges, taxes, expenses, claims and demands; each such distribution shall be 

made only against the production of such evidence as the Trustee may require of the title 

of the Unit Holder relating to the Units in respect of which the distribution is made. 

In the event that a Fund is terminated, the Trustee shall be at liberty to call upon the 

Manager to grant the Trustee, and the Manager shall so grant, a full and complete release 

from the Deed and the Manager shall indemnify the Trustee against any claims arising out 

of the Trustee’s execution of the Deed provided always that such claims have not been 

caused by any failure on the part of the Trustee to exercise the degree of care and diligence 

required of a trustee as contemplated by the Deed and all relevant laws. 

The Manager (or the Trustee, if a Fund has been terminated in the circumstances spelt out 

in Division 12.3 of the Deed) shall, as soon as practicable after the winding up of the Fund, 

inform Unit Holders and the relevant authorities of the same in such manner as may be 

prescribed by any relevant law. 

Where the termination of a Fund and the winding-up of the Fund have been occasioned 

by any of the events set out below: 

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

or amalgamation upon terms previously approved in writing by the Trustee and the 

relevant authorities; 

(b) if, in the opinion of the Trustee, the Manager has ceased to carry on business; or 

(c) if, in the opinion of the Trustee, the Manager has to the prejudice of Unit Holders 

failed to comply with the provisions of the Deed or contravened any of the provisions 

of any relevant law; 

the Trustee shall summon for a Unit Holders meeting to get directions from the Unit 

Holders and also arrange for a final review and audit of the final accounts of the 

Fund by the Auditor of the Fund; in all other cases of termination of the trust and 

winding-up of the Fund, such final review and audit by the Auditor of the Fund shall 

be arranged by the Manager.

110 

section 12 


12.4 The Maximum Fees and Charges that may be imposed by the Manager 

and the Steps to be taken by the Manager to increase such Fees and 

Charges 

12.4.1 Maximum Rate of Direct Fees and Charges allowable by the Deed 

Fund Maximum sales charge Maximum 


Manulife Investment - 

China Value Fund 


Global Resources Fund 10.00% of the NAV nIL 


India Equity Fund 

12.4.2 Maximum Rate of Indirect Fees and Charges allowable by the Deed 

Fund Maximum Management Maximum 

Fee 

Trustee Fee 


0.15% of NAV of the 

China Value Fund 

Fund subject to 

minimum of 


RM18,000 per annum 

Global Resources Fund 2.55% of the NAV (excluding foreign 

custodian fees and 


charges.) Further if 

India Equity Fund 

the Trustee is the 

counterparty for a 

hedge transaction in 

relation to the Fund, 

then and additional 

fee of 0.03% 

is payable to the 

trustee. 

12.4.3 Procedures to be taken to increase the Direct and Indirect Fees and Charges 

Any increase in the maximum allowable rate of the sales charge / Redemption Charge/ 

annual management fee/ annual trustee fee stated in the Deed may only be made by way 

of a supplemental deed and in accordance with the requirements of the relevant laws.

section 9 


111 

Any increase in the sales charge / Redemption Charge / annual management fee / annual 

trustee fee may be effected by the Manager provided: 

Sales Charge 

A higher sales charge than that disclosed in the Master Prospectus may only be imposed 

if: 

(a) the Manager has notified the Trustee in writing of and the effective date for the 

higher charge; 

(b) a supplemental prospectus in respect of a Fund setting out the higher charge is issued; 

and 

(c) such time as may be prescribed by any relevant law has elapsed since the effective 

date of the supplemental prospectus. 


A higher Redemption Charge than that disclosed in the Master Prospectus may only be 

imposed if: 

(a) the Manager has notified the Trustee in writing of and the effective date for the 

higher charge; 

(b) a supplemental prospectus in respect of the Fund setting out the higher charge is 

issued; and 

(c) such time as may be prescribed by any relevant law has elapsed since the effective 

date of the supplemental prospectus. 

Annual Management Fee 

The Manager may not charge an annual management fee at a rate higher than that 

disclosed in the Master Prospectus unless: 

(a) the Manager has come to an agreement with the Trustee on the higher rate; 

(b) the Manager has notified the Unit Holders of the higher rate and the date on 

which such higher rate is to become effective; 

(c) in relation to a Fund requiring the issuance of a prospectus, a supplemental prospectus 

stating the higher rate is issued thereafter; and 

(d) such time as may be prescribed by any relevant law shall have elapsed since the 

supplemental prospectus is issued.




The Trustee may not charge an annual trustee fee at a rate higher than the maximum rate 

disclosed in the Master Prospectus unless: 

(a) the Manager has come to an agreement with the Trustee on the higher rate; 

(b) the Manager has notified the Unit Holders of the higher rate and the date on which 

such higher rate is to become effective; 

(c) a supplemental prospectus stating the higher rate is issued thereafter; and 

(d) such time as may be prescribed by any relevant law shall have elapsed since the 

supplemental prospectus is issued. 

12.5 Other Expenses Permitted under the Deed 

Only the expenses (or parts thereof) which are directly related and necessary to the 

operation and administration of a Fund may be charged to the Fund. These would include 

(but are not limited to) the following: 

(a) commissions/fees paid to brokers in effecting dealings in the investments of the Fund, 

shown on the contract notes or confirmation notes; 

(b) taxes and other duties charged on the Fund by the Government and/or other 

authorities; 

(c) costs, fees and expenses properly incurred by the Auditors appointed for the Fund; 

(d) costs, fees and expenses incurred for the valuation of any investment of the Fund by 

independent valuers for the benefit of the Fund; 

(e) costs, fees and expenses incurred for any modification of this Deed save where such 

modification is for the benefit of the Manager and/or the Trustee; 

(f) costs, fees and expenses incurred for any meeting of the Unit Holders save where such 

meeting is convened for the benefit of the Manager and/or the Trustee; 

(g) costs, commissions, fees and expenses of the sale, purchase, insurance and any other 

dealing of any asset of the Fund; 

(h) costs, fees and expenses incurred in engaging any specialist approved by the Trustee 

for investigating or evaluating any proposed investment of the Fund;

113 

(i) 

(j) 

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; 

(k) costs, fees and expenses incurred in the termination of the Fund or the removal of the 

Trustee or the Manager and the appointment of a new trustee or management company; 

(l) 

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 Manager 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); 

(m) remuneration and out of pocket expenses of the independent members of the 

Investment Committee of the Fund, unless the Manager decides otherwise; 

(n) costs, fees and expenses deemed by the Manager 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; and 

(o) where the custodial function is delegated by the Trustee, charges and fees paid to 

sub-custodians. 

12.6 Circumstances that may lead Towards the Retirement, Removal or 

Replacement of the Manager 

The Manager may retire upon giving twelve (12) months’ notice (or such shorter period as 

the Manager and the Trustee may agree) to the Trustee of its desire to do so, and may by 

deed appoint in its stead a new management company approved by the Trustee and the 

SC. 

The Manager shall also retire, if so required by the Trustee, on the grounds that: 

(a) a special resolution to that effect has been passed by the Unit Holders at a meeting 

called for that purpose; 

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

and the Trustee considers that it would be in the interests of Unit Holders for it to do so 

after the Trustee has given notice to it of that opinion and the reason for that opinion, and 

after consultation with the relevant authorities and with the approval of Unit Holders;



(c) unless expressly directed otherwise by the relevant authorities, the Manager is in 

breach of any of its obligations or duties under the Deed or the relevant laws, or has 

ceased to be eligible to be a management company under the relevant laws; or 

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

reconstruction or some similar purpose, or has had a receiver appointed or has ceased 

to carry on business. 

12.7 Powers of the Manager to Remove the Trustee 

The Trustee may be removed and another trustee may be appointed by a special resolution 

of the Unit Holders at a Unit Holders’ meeting convened in accordance with the Deed. 

The Manager shall take all reasonable steps to replace the Trustee as soon as practicable 

after becoming aware that: 

(a) The Trustee has ceased to exist; 

(b) The Trustee has not been validly appointed; 

(c) The Trustee is not eligible to be appointed or to act as trustee under Section 290 of 

the Act; 

(d) 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 Act; 

(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); or 

(f) The Trustee is under investigation for conduct that contravenes the Trust Companies 

Act 1949, the Trustee Act 1949, the Companies Act 1965 or any securities law. 

12.8 Retirement or Removal or Replacement of the Trustee 

The Trustee may retire upon giving twelve (12) months’ notice to the Manager of its desire 

to do so (or such shorter period as the Manager and the Trustee may agree) and may by 

deed appoint in its stead a new trustee approved by the SC. 

The Trustee may be removed and another trustee may be appointed by special resolution of 

the Registered Unit Holders at a Registered Unit Holders’ meeting convened in accordance 

with the Deed or as stipulated in the Act.

115 

12.9 Power of Trustee to Remove or Replace the Manager 

Subject to the provisions of any relevant law, the Trustee shall take all reasonable steps to 

remove the Manager: 

(a) if the Manager has failed or neglected to carry out its duties to the satisfaction of the 

Trustee and the Trustee considers that it would be in the interests of Unit Holders for 

it to do so after the Trustee has given notice to it of that opinion and the reasons for 

that opinion, and has considered any representations made by the Manager in respect 

of that opinion, and after consultation with the relevant authorities and with the 

approval of the Unit Holders by way of a special resolution; 

(b) unless expressly directed otherwise by the relevant authorities, if the Manager is in 

breach of any of its obligations or duties under the Deed or the relevant laws, or has 

ceased to be eligible to be a management company under the relevant laws; or 

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

reconstruction or some similar purpose, or has had a receiver appointed or has ceased 

to carry on business; 

and the Manager shall not accept any extra payment or benefit in relation to such removal. 

In any of the above said grounds, the Manager shall upon receipt of a written notice 

from the Trustee ipso facto cease to be the Management Company of a Fund. The 

Trustee shall, at the same time, by writing appoint some other corporation approved by 

the relevant authorities to be the management company of the Fund; such corporation 

shall have entered into such deed or deeds as the Trustee may consider to be necessary 

or desirable to secure the due performance of its duties as management company for 

the Fund.


CLIENT COMMUNICATION 

Unit Holders will/can receive regular updates on the Fund and on their investment through: 

(a) 

(b) 

(c) 

(d) 

(e) 

Newspapers 

Unit Holders will be able to obtain information pertaining to the Funds from the press. 

The NAV per Unit of the Funds will be quoted in at least two (2) major daily newspapers 

to enable Unit Holders to monitor their investments. The daily prices may be based on 

information available two (2) Business Days prior to publication. 

The Manager’s Company Website 

Unit Holders will be able to obtain information pertaining to the Fund from the Manager’s 

Company Website at www.manulife.com.my. The Unit Holders will be also able to obtain 

the NAV per Unit of the Fund in following website at http://www.manulife.com.my/fpwm/ 

Pages/UnitTrust.aspx. 

Financial Reports 

The Manager will provide Unit Holders with an annual report within two (2) months of 

the Funds’ financial year-end and an interim report within two (2) months of the end of 

the period covered. A financial statement audited by the Funds’ appointed auditor will be 

included in the annual report. The Trustee will prepare a trustee report to Unit Holders in 

both the annual and interim reports stating its opinion whether the Manager has operated 

and managed the Funds in accordance with the Deed, Guidelines and other applicable 

laws. 

Statement of Accounts 

The Manager will issue a statement to Unit Holders on a half yearly basis confirming the 

current shareholdings and transactions relating to their Units in the Funds. 

Customer Service 

Unit Holders can seek assistance from the customer service personnel at the Manager’s 

office or at any location listed in Section 23 during the stated office hours. Alternatively, 

investors can communicate with the Manager via Tel. No.: 03-2719 9228; Fax No.: 03-2719 

9119 or email to my_utservice@manulife.com.

section 14 

THE MANAGEMENT COMPANY 

117 

14.1 Background 

The Manager was incorporated in Malaysia on 30 September 2008 under the Companies 

Act, 1965 and commenced operations in 4 May 2009.As at the LPD, there are 5 funds 

under the Manager’s management with an aggregate fund size in excess of RM 98.52 

million. 

As at LPD, the Manager has a staff force of 6, of whom, all are executive staff. 

The Manager is a wholly-owned subsidiary of Manulife Holdings Berhad (formerly known 

as Manulife Insurance (Malaysia) Berhad) (24851-H), a company listed on the Main Market 

of Bursa Malaysia. 

14.2 Role of the Manager 

The Manager is responsible for the operation and administration of the Fund; investment 

management and marketing of the Fund; servicing Unit Holders’ needs; keeping proper 

administrative records of Unit Holders and accounting records of the Fund; ensuring that 

the Fund/Units are correctly priced; ensuring compliance with stringent internal procedures 

and guidelines of relevant authorities and relevant laws. 

14.3 Financial Position 

As at 

Financial Year Ended 

31 October 31 December 31 December 31 December 

2011 2010 2009 2008* 

(RM) (RM) (RM) (RM) 

Turnover 1,308,426 1,392,866 183,250 Not Applicable 

Profit/(Loss) Before Tax (1,378,675) (1,260,708) (901,682) Not Applicable 

Profit/(Loss) After Tax (1,027,609) (882,518) (858,960) Not Applicable 

Issued/Paid-up Capital 17,000,000 12,000,000 12,000,000 2 

Shareholders’ Fund 14,230,913 10,258,522 11,141,040 2 

* The Manager was only incorporated on 30 September 2008. 

** The financial position as at LPD is unaudited. 

14.4 Role of Directors 

The Board of Directors is responsible for the overall management of the Manager and the Funds. 

The Board not only ensures corporate governance is practised but policies and guidelines are 

adhered to. The Board meets once every quarter of the year to discuss and decide on business 

strategies, operational priorities and ways of managing risk within the Manager.

118 

section 14 

the management company 

14.5 Board of Directors of the Manager 

Edward Ooi Tee Hee (Chief Executive Officer/ Executive Director) joined the Manager in 

November 2010 as Chief Distribution Officer. Edward was subsequently appointed as CEO 

on 4 January 2011. He has over 12 years Wealth Management experience covering the 

sales, marketing and distribution development. Prior to joining the Manager, Edward was 

the Chief Officer, Channel Marketing and Distribution of one of the top asset management 

companies since 2007. Edward joined us with a successful track record, where he had 

successfully managed the company’s distribution channels covering Institutional Sales, 

Agency Distribution, Regional Distribution, Agency Admin and Development. He is wellknown 

in the market and has worked with most of the banks, IFA and tied UT agencies in 

the market. 

Edward Ooi holds a Bachelor of Business Administration Degree majoring in Marketing 

and Management from University of Central Oklahoma, United States of America. 

Datuk Seri Panglima Mohd Annuar bin Zaini (Independent Director) was appointed 

to the Board on 5th July 2011. He holds a Master of Arts in Law & Diplomacy from The 

Fletcher School of Laws & Diplomacy, Tufts University, USA; and a Bachelor of Arts with 

honours in Economics from University Kebangsaan Malaysia. 

He began his career in the government service as an Administrative and Diplomatic Officer 

in 1977. He served the Malaysian Government at various ministries and departments and 

also the Perak State Government until he chose to take an optional retirement from the 

government service in 1999. 

He was Advisor and Chief Executive of Northern Corridor Implementation Authority from 

2007 to 2009. He was the Chairman of Malaysian National News Agency (BERNAMA) 

from February 2004 to January 2010. In February 2004, HRH The Sultan of Perak 

consented his appointment as Member of the Council of Elders to HRH Sultan of Perak. 

He is a Member of the Perak Council of Islamic Religion and Malay Customs and the Perak 

State Islamic Economic Development Corporation. He is also a Distinguished Fellow to 

Institute of Strategic and International Studies (ISIS) Malaysia and Adjunct Professor of 

Northern Corridor Economic Region Research Centre, Universiti Utara Malaysia. He sits 

on the Board of Plus Expressways Berhad, Dijaya Corporation Berhad, Manulife Holdings 

Berhad, Manulife Insurance Berhad, the Investment Manager and a few private limited 

companies. 

Datuk Ismail Bin Haji Ahmad (Independent Director) was appointed to the Board on 

26 May 2008. He graduated from University Malaya with a Bachelor of Arts Degree 

(Honours) and later obtained his Masters Degree in Public Policy and Administration from 

the University of Wisconsin, United States of America. He had also attended the Senior 

Management Program conducted by the Harvard Business School.

section 11 


119 

Prior to joining the private sector, he had served as an officer in the Administrative and 

Diplomatic Service Malaysia in the Prime Minister’s Department, Ministry of Home Affairs 

and the Ministry of Primary Industries. While in the Government service, he had served in 

senior positions as the Deputy Secretary General of the Ministry of Primary Industries and 

the Chief Executive Officer of the Commodities Trading Commission. 

After his retirement from the Civil Service, he had served as Chairman of Bank Muamalat 

Malaysia Berhad and Board member of Advanced Packaging Technology (M) Berhad and 

IPP Venture Berhad. He also sits on the Boards of the Investment Manager. 

Michael Chan Yui Lung(Non-Independent Director) was appointed to the Board on 

25 February 2009. He is a Fellow Member of the British Royal Chartered Institute of 

Management Accountants, Associate Member of Hong Kong Institute of Certified Public 

Accountants and a qualified member of the society of Registered Financial Planners, Hong 

Kong. Mr Chan has been a qualified member of the Life Insurance Management Research 

Association since 1997. 

Mr Chan joined Manulife International Ltd, Hong Kong in 2000 as Vice President, Group 

Life and Health. He was appointed as Vice President, Distribution in 2004, as Head of 

Sales Operation of 450 Corporate Brokers and 3,600 tie in-house agents. Prior to joining 

Manulife International Ltd in 2000, Mr Chan served on the Boards of a number of insurance 

companies and as an Accounting Officer in Management Accounting Branch, Treasury for 

the Hong Kong Government. 

He is the Group Chief Executive Officer/Managing Director of Manulife Holdings Berhad 

and Chief Executive Officer/Director of Manulife Insurance Berhad and Non-Executive 

Director of the Investment Manager. 

David Wong Tai Wai (Independent Director) was appointed to the Board on 19th July 

2011. He holds a Bachelor’s Degree in Mathematics majoring in Computer Science, and 

completed his MBA program at the University of Toronto, majoring in International 

Business. He is currently the Regional Executive of Manulife Financial for South East Asia, 

in charge of the four Manulife operations in Malaysia, Philippines, Thailand and Vietnam. 

He has 30 years of experience in the insurance and financial industry, entirely with 

Manulife Financial, and has extensive management experience in general management, 

agency distribution, information technology, underwriting, customer service and market 

research in Canada, the United States, Hong Kong, Macau, Taiwan and Vietnam. 

Christopher Franz Bendl (Independent Director) was appointed to the Board on 19th July 

2011. He joined Manulife in December 2010 as the Head of Regional Wealth Management 

for Asia reporting directly to the Senior Executive Vice President & General Manager, Asia. 

He is a member of the Regional Management Team.

120 

section 14 


For the past 8 years, Mr. Bendl has held various leadership positions within the international 

life insurance companies of AIG in the Middle East and Southeast Asia and most recently 

as the CEO of an Indonesian insurer. 

Mr. Bendl has a diverse and successful track record in the development of alternative 

distribution channels and partnerships, product development and business transformation 

initiatives in many operating jurisdictions and under many different business conditions. 

Previously, Mr. Bendl worked for Manulife Financial and its related companies for nearly 10 

years, where he held senior positions in the investment, pension and insurance subsidiaries 

in Canada, Indonesia and the Philippines. 

Mr. Bendl completed a MBA at Queen’s University and a Bachelor of Science degree at The 

University of British Columbia. 

Encik Ahmad Riza bin Basir, (Independent Director) was appointed to the Board on 

26th September 2011. He obtained his Bachelor of Law Degree with honours from the 

University of Hertfordshire, UK and qualified as a barrister-at-law of the Honourable 

Society of Lincoln’s Inn, London, UK. 

Encik Riza sits on the Boards of Jerneh Asia Berhad and United Plantations Berhad. He is 

also a member of the Audit Committee of United Plantations Berhad. 

14.6 Role of the Investment Committee 

The Investment Committee formulates, establishes and implements investment strategies 

and policies. The Investment Committee will continually review and monitor the success 

of these strategies and policies using predetermined benchmarks towards achieving a 

proper performance for the Funds. The Investment Committee will also ensure investment 

guidelines and regulations are complied with. The Investment Committee will meet at 

least once every quarterly or more should the need arise. 

14.7 The Investment Committee Members 

Tan Sri Dato’ Mohd Sheriff Bin Mohd Kassim (Independent) holds a BA (Honours) 

Economics degree from University Malaya and a Diploma in Economic Development 

from Oxford University, United Kingdom. He also holds a MA Economics from Vanderbilt 

University, United States of America. 

Tan Sri Dato’ was the Managing Director of Khazanah Nasional Berhad and past Director of 

United Engineers (Malaysia) Berhad and former Chairman of UEM Land Sdn Bhd (formerly 

known as Renong Berhad). Prior to joining Khazanah Nasional Berhad as the Managing 

Director in 1994, he served as the Secretary General of Treasury, Ministry of Finance for 3 

years.

section 11 


121 

Tan Sri Dato’ sits on the Boards of Manulife Holdings Berhad (formerly known as Manulife 

Insurance (Malaysia) Berhad), Manulife Insurance Berhad and the Investment Manager as 

Independent Non-Executive Chairman. He is also the Non-Independent Non-Executive 

Chairman of PLUS Expressways Berhad, Chairman of the Malaysian Institute of Economic 

Research, Deputy President of the Malaysian Economic Association. He further serves 

as a Non-Executive Chairman of Projek Penyelenggaran Lebohraya Berhad and Projek 

Lebohraya Utara-Selatan Berhad, Scientex Berhad, Standard Chartered Bank Malaysia 

Berhad and Standard Chartered Saadiq Bhd. 

Datuk Ismail bin Haji Ahmad (Independent) (profile as mentioned in Section 14.5) 

Michael Chan Yui Lung (profile as mentioned in Section 14.5) 

Leo Ng Ho Lai (Group Chief Financial Officer) oversees the group financial matters. He is a 

Fellow of the Society of Actuaries and the Canadian Institution of Actuaries. Mr Ng joined 

Manulife Financial more than 14 years ago and held various roles in Manulife Financial’s 

offices in Toronto, Hong Kong and Malaysia. 

14.8 Key Personnel of the Manager 

Edward Ooi Tee Hee (profile as mentioned in Section 14.5). 

Sharanjeet Kaur Gill (Vice President, Legal & Compliance), holds a LL.B (Hons) from 

University of London (External). With 5 years experience in the legal profession and 8 

years in the compliance function, she joined Manulife Holdings Berhad in July 2011. She 

is the designated person responsible for compliance matters. She works closely with the 

authorities in ensuring compliance with the laws and regulations pertinent to the unit trust 

industry. 

Ong Bee Lian (Senior Manager of Operations) is an Associate Member of the Chartered 

Institute of Management Accountants. She has more than 15 years of experience in the 

unit trust, trustee services and stockbroking industry. She is responsible for the smooth 

running of the operation functions of the Manager. In addition, she is also responsible for 

the development and implementation of the Manager’s system. 

14.9 Material Litigation 

As at LPD, the Manager is not engaged in any material litigation and arbitration, including 

those pending or threatened, and any facts likely to give rise to any proceedings which 

might materially affect the business/financial position of the Manager.

122 

section 14 


14.10 Manager’s Delegate 

The Manager has obtained the approval from the SC for the appointment of HSBC 

(Malaysia) Trustee Berhad to carry out the fund valuation functions for the Fund. The 

Manager’s delegate has invested significantly into information technology to offer 

accounting and valuation services to its clients. Under the terms of the service level 

agreement, the Manager’s delegate would assist the Manager in its performance of duties 

and functions to maintain accounts and carry out daily valuation/pricing. A brief description 

on the background of the Manager’s delegate is set out in Section 16 hereafter. 

The Manager has also delegated certain other functions to Manulife Holdings Berhad, 

Manulife Insurance Berhad, an institution licensed by Bank Negara Malaysia and Manulife 

Technology & Services Sdn Bhd. 

(a) Corporate Information 

Manulife Holdings Berhad (MHB) 

MHB has commenced operations in year 1975 and is the holding company and provides 

certain shared services to its subsidiaries and related companies. 

As at 31 October 2011, MHB has a paid-up capital of RM101 million and shareholders’ 

funds (consolidated basis) of RM565 million. 

The following is a summary of the past performance of MHB (consolidated basis) based on 

audited financial statements for the last 3 years: 

As at 

As at 

year Ended 31 December 

31 October 2011 2010 2009 2008 

(RM’000) (RM’000) (RM’000) (RM’000) 

Paid-up Share Capital 101,185 101,185 101,185 101,185 

Shareholders’ Funds 565,660 535,587 488,244 437,978 

Turnover 506,106 612,143 587,742 638,528 

Profit before Tax 74,781 82,188 79,381 61,056 

Profit after Tax 59,551 64,354 59,148 47,003 

Manulife Insurance Berhad (MIB) 

MIB is a wholly owned subsidiary of MHB and also provides certain shared services to the 

other subsidiaries of MHB. 

As at 31 October 2011, MIB has a paid-up capital of RM150 million and shareholders’ funds 

(consolidated basis) of RM324 million.

section 11 


123 

The following is a summary of the past performance of MIB based on audited financial 

statements for the last 3 years: 

As at 


31 October 2011 2010 2009 2008 

(RM’000) (RM’000) (RM’000) (RM’000) 

Shareholders’ Funds 324,651 272,954 208,969 189,060 

Turnover 491,978 595,572 574,759 163,195 

Profit before Tax 66,660 74,470 70,568 48,895 

Profit after Tax 52,905 59,500 52,094 39,060 


Manulife Technology & Services Sdn Bhd (MTS) 

MTS is a global IT shared service centre for the Manulife group of companies in Asia and 

North America. 

As at 31 October 2011, MTS has a paid-up capital of RM2,300,000 and shareholders’ 

funds of RM13,165,197. 

The following is a summary of the past performance of MTS (consolidated basis) based 

on audited financial statements for the last 3 years: 

As at 


31 October 2011 2010 2009 2008 


Paid-up Share Capital 2,300,000 2,300,000 2,300,000 2,300,000 

Shareholders’ Funds 13,165,197 12,020,385 11,242,878 11,858,305 

Turnover 16,852,630 17,960,011 11,328,978 10,223,590 

Profit before Tax 1,173,086 694,224 (572,236) 4,339,782 

Profit after Tax 1,144,812 777,507 (615,427) 4,289,068 

(b) Duties of the Manager’s Delegate 

MHB is responsible for the functions relating to compliance, internal audit, human 

resource, finance, corporate secretarial and legal. 

The functions relating to product development and marketing will be provided by MIB. 

MTS is responsible for providing information technology services.


the investment manager 

15.1 Background 

The Manager has appointed Manulife Asset Management (Malaysia) Sdn. Bhd. as the 

Investment Manager to implement the investment strategy and manage the Fund. 

The Investment Manager was incorporated in Malaysia on 15 May 2008 holds a Capital 

Markets Services Licence for fund management under the Act. 

The investment professionals at the Investment Manager form part of Manulife Financial 

Corporation’s network of investment professionals around the world. They join a 

global team of more than 300 managers, analysts and traders who together provide 

comprehensive asset management solutions for institutional investors, investment funds 

and individuals in key markets around the world. 

The Investment Manager is a wholly-owned subsidiary of Manulife Holdings Berhad, a 

company listed on the Main Market of Bursa Malaysia. 

As at LPD, the Investment Manager manages assets amounted to approximately RM2.9 billion. 

15.2 Key Personnel of the Investment Manager 

Jason Chong (Executive Director and Chief Executive Officer) joined the Investment 

Manager in February 2010, bringing him more than 23 years of experience in the capital 

market industry. Prior to joining the Investment Manager, he was the Chief Investment 

Officer of UOB-OSK Asset Management Sdn Bhd. He brings with him an outstanding 

investment track record, having previously been responsible for the management of 

Malaysian as well as regional equity and fixed income funds, totaling about RM5 billion 

(approx. US$1.6 billion). Before joining the fund management industry, he spent 14 years 

as an investment analyst covering both the local and foreign equities. His last posting was 

as the Head of Research at Merrill Lynch Malaysia / Smith Zain Securities Sdn Bhd. 

He holds a Bachelor of Science degree in Economics and Finance (Honors) from the University 

of Southern New Hampshire, USA and the Capital Markets Services Representative License 

in fund management. 

Tock Chin Hui (Head of Equity) joined the Investment Manager in May 2010 and is 

responsible for the equity portfolios as well as overseeing the equity team in Malaysia. 

She has more than 15 years’ of experience in the capital market industry. Prior to joining 

the Investment Manager, she was the Deputy Head of Equities of UOB-OSK Asset 

Management Sdn Bhd. She holds a Capital Markets and Services Representative License in 

fund management. 

She is also the designated fund manager for MICVF, MIGRF and MIIEF. 

 

Lim Kar Yee (Senior Equity Portfolio Manager) joined the Investment Manager in 2011, 

and has a total of 15 years of experience in the capital market industry. She is responsible

125 

for managing the equity portfolios as well as increasing equity research coverage in 

Malaysia. Prior to joining the Investment Manager, she was in the investment team of 

CIMB Private Banking. Prior to that, she was a Assistant Director of Equity in a foreign - 

local joint-venture asset management company in Malaysia. 

She holds a Capital Markets and Services Representative License issued by the Securities 

Commission in fund management. 

Elsie Tham (Fixed Income Portfolio Manager) joined the Investment Manager in 2009, 

and has a total of about 6 years in the capital market industry. She is responsible for 

managing the fixed income portfolios and performing comprehensive credit evaluation 

on all fixed income investments and financial institutions. Prior to joining the Investment 

Manager, she was a Credit Analyst with RAM Rating Services Berhad. 

She holds a Capital Markets and Services Representative License in fund management. 

Tew Sow Hume (Assistant Vice President, Operations & Middle Office) joined the 

Investment Manager in October 2011. He is responsible for overseeing the operations of 

the back and middle office functions in MAMM. Prior to joining the investment manager, 

he was with Phiem Asset Management Sdn. Bhd. for 15 years where he started his 

career as Operations Executive and rose to become Operations Manager responsible for 

managing the back office functions. He later transferred to become the Senior Manager 

of Compliance in the same organization. 

He is a Fellow of the Association of Chartered Certified Accountants (FCCA). 

15.3 Roles, Duties and Functions of the Investment Manager 

The Investment Manager shall be responsible for the management of the Funds and 

subject to compliance with the investment parameters and any mandates, applicable 

laws, instructions or requirements communicated to the Investment Manager by the 

Manager from time to time. Managing the Funds will include, but not be limited to, 

investing and reinvesting in shares, stocks, debenture stocks, corporate and government 

bonds, certificates of deposits, debt securities and other securities. It will also include the 

depositing of monies in the bank pending such investments being made and the varying 

of investments from time to time. 

In the event that any of the investment parameters or investment restrictions applicable 

to the Funds is breached, the Investment Manager shall promptly report to the Manager 

of the breaches and the steps taken as may be necessary to remedy such breach within a 

reasonable period of time. 

In addition, the Investment Manager shall report to the Manager on a monthly basis 

whether it has complied with all of the applicable laws and investment parameters, 

mandates, instructions or requirements (if any) communicated to the Investment Manager 

in writing by the Manager from time to time.


the investment manager 

In complying with applicable laws, amongst others, the Investment Manager shall maintain 

complete and accurate records relating to all portfolio transactions of the Funds and to 

comply with its business continuity policy. 

15.4 Material Litigation 

As at LPD, the Investment Manager is not engaged in any material litigation and arbitration, 

including those pending or threatened, and any facts likely to give rise to any proceedings 

which might materially affect the business/financial position of the Investment Manager.

section 16 

THE TRUSTEE 

127 

16.1 Background Information 

The Trustee is HSBC (Malaysia) Trustee Berhad (Company No. 1281-T), a company 

incorporated in Malaysia since 1937 and registered as a trust company under the Trust 

Companies Act 1949, with its registered address at 13 th Floor, Bangunan HSBC, South 

Tower, No 2, Leboh Ampang, 50100 Kuala Lumpur. The Trustee is a member of the HSBC 

Holdings Plc. group of companies and forms part of the global network of trust companies 

within HSBC Holdings Plc. 

16.2 Financial Position 

The Trustee has a paid-up capital of RM500,000.00. As at 31 December 2010, its 

shareholders’ funds totaled RM23.33 million and it achieved a profit before tax of RM11.25 

million.. 

The following is a summary of the past performance of the Trustee based on audited 

accounts for the last 3 years: 


Management 

Account Ended 

30 June 2011 

2008 2009 2010 (unaudited) 



Shareholders’ Funds 14,353,116 17,521,023 23,330,550 27,025,980 

Turnover 17,843,570 18,006,590 20,989,037 10,257,352 

Profit before Tax 10,470,535 10,930,880 11,253,763 4,928,987 

Profit after Tax 7,754,577 8,200,407 8,314,528 3,696,740 

16.3 Experiences in Trustee Business 

Since 1993, the Trustee has acquired experience in the administration of unit trusts and as 

at 31 October 2011, is the Trustee for 177 unit trust funds (including exchange traded funds 

and wholesale funds). 

As at 31 October 2011, the Trustee has a workforce of 56 employees consisting of 41 

executives and 15 non-executives. A good number of the staff has been with the Trustee for 

many years. This element of continuity reflects an intrinsic characteristic of trust services. The 

Trustee also believes in building team and talents by recruiting new members with relevant 

experiences to replace the long serving retired colleagues.


the trustee 

Each client’s account is under the supervision of a trust officer who is able to focus 

his personal attention on the administration of the account and reports directly to 

his manager. 

The Trustee also has a Compliance Section whose responsibilities is to ensure that the 

Trustee’s business is carried on in accordance with all relevant laws, codes, rules and 

standards of good market practice. 

16.4 Board of Directors 

Ms Lim Liang Hua 

Dato’ Ranita Mohd Hussein 

Ms Zainon Baba 

Ms On Bee Heong 

Ms Hew Su Chan (Alternate to Ms On Bee Heong) 

Mr Baldev Singh A/L Gurdial Singh 

16.5 Profile of Key Personnel 

Ms Lim Liang Hua – Managing Director 

She joined HSBC (Malaysia) Trustee Berhad in April 2004 and brings with her over 20 years 

of legal advisory and problem solving skills in the banking and financial services industry. 

She holds a Bachelor of Economics and Bachelor of Laws (LLB) from Monash University, 

Australia. She was admitted to practice as a Barrister & Solicitor in Victoria, Australia in 

1984 and was called to the Malaysian Bar in 1985. She was in private practice for three 

years in the Klang Valley before joining the corporate sector, namely the banking and 

financial institutions industry. She was the Chief Legal Adviser and Company Secretary for 

the Phileo Allied Bank Group and the United Overseas Bank Group in Malaysia. Prior to her 

joining HSBC, she was Chief Executive Officer in an established trust company. 

Mr Yee Yit Seeng – Chief Operating Officer 

He joined HSBC (Malaysia) Trustee Berhad in July 1984. He holds a Diploma in Banking 

and Finance and is a Senior Associate of Institut Bank-Bank Malaysia. He has more than 22 

years of experience in trust operations including client service, systems/projects & office 

administration, compliance, internal control & audit, and business development. He was 

also seconded to the HSBC Back-end Processing Office in Cyberjaya, Malaysia to support 

the global securities operations. 

Puan Maziah Yong – Head, Client Service 

She joined HSBC (Malaysia) Trustee Berhad in November 2007. She holds an Advanced 

Diploma In Law from Institut Teknologi MARA. Prior to her joining HSBC, she has more 

than 15 years working experience in trust administration, especially relating to unit 

trust schemes.

129 

Ms Lim Gim Lee – Head, Fund Administration 

She joined HSBC (Malaysia) Trustee Berhad in December 2008. She holds an Advanced 

Diploma in Business Administration - Institute of Business Administration and Management 

(IBAM). She was one of the pioneer staff in setting up two unit trust management 

companies and has more than 13 years working experience in the unit trust industry. 

Ms Vimala Mahathevan - Head, Business Support 

She joined HSBC (Malaysia) Trustee Berhad in January 2010. She holds a Diploma in 

Banking and Finance of Institut Bank-Bank Malaysia and a Diploma in Computer Studies 

from the National Centre of Computing and Information Technology (NCC). She has 9 

years of general banking experience and 16 years of experience in the securities industry 

which includes overseeing the settlement operations for foreign institutional clients, client 

servicing, system implementation and being the liaison party with regulatory bodies such 

as Bursa Malaysia. Prior to joining HSBC Trustee, she was the Head of Settlement, HSBC 

Securities Services, Sub-Custody and Clearing, in Malaysia. 

Ms Lau Sook Yee – Head, Compliance 

She joined HSBC (Malaysia) Trustee Berhad in September 2005. She has more than 

20 years experience in banking and treasury operations in both merchant and 

commercial banks. 

Ms Ng Pek Wan - Head, Documentation 

She joined HSBC (Malaysia) Trustee Berhad in July 2010. She holds a Bachelor of Laws (LLB) 

from University of London and was called to the Malaysian Bar in 2000. Prior to joining 

HSBC, she was in private practice for almost 10 years with experience in commercial 

litigation and various corporate work. 

Ms Tan Bee Nie - Head, Trustee Operations 

She re-joined HSBC (Malaysia) Trustee Berhad in Jan 2011. She holds a Diploma in Business 

Administration awarded by The Association of Business Executives (ABE), United Kingdom. 

She has 18 years experience in fund administration relating to unit trust schemes, including 

fund accounting and valuation, with unit trust management and trust companies. 

Ms Joyce Lim – Manager, Business Development 

She joined HSBC (Malaysia) Trustee Berhad in June 2011. She holds a Bachelor of Science 

in Finance and International Business and a Master of Business Administration from 

the University of Bridgeport, Connecticut, USA. She has more than 15 years working 

experience in financial services, including retail banking, reinsurance, trustee, and unit 

trust industry. 

Mr Joshua Ling – Manager, Business Control and Finance 

He joined HSBC (Malaysia) Trustee Berhad in August 2011.He is a member of the 

Association of Chartered Certified Accountants (ACCA), United Kingdom. He has more 

than 10 years working experience in accounting firm and financial services industry.

130 

section 16 

the trustee 

Mr Tan Soo Siong - Head, Due Diligence 

He joined HSBC (Malaysia) Trustee Berhad in September 2011. He holds a Diploma 

in International Advertising from the World Secretariat, International Advertising 

Association Incorporated USA. Prior to Joining HSBC, he has over 20 years experience in 

the banking and finance services including 8 years in the investment management and 

unit trust industry, covering various areas in fund operations, customer and distributor 

services, investor operations and information technology. 

16.6 Duties and Responsibilities of the Trustee 

The Trustee’s main functions are to act as trustee and custodian of the assets of the Fund 

and to safeguard the interests of Unit Holders of the Fund. In performing these functions, 

the Trustee has to exercise all due care, diligence and vigilance and is required to act in 

accordance with the provisions of the Deed, Capital Markets and Services Act 2007 and 

the Securities Commission’s Guidelines on Unit Trust Funds (“Guidelines”). Apart from 

being the legal owner of the Fund’s assets, the Trustee is also responsible for ensuring that 

the Manager performs its duties and obligations in accordance with the provisions of the 

Deed, Capital Markets and Services Act 2007 and the Guidelines. In respect of monies 

paid by an investor for the application of units, the Trustee’s responsibility arises when 

the monies are received in the relevant account of the Trustee for the Fund and in respect 

of redemption, the Trustee’s responsibility is discharged once it has paid the redemption 

amount to the Manager. 

16.7 Trustee’s Statement of Responsibility 

The Trustee has given its willingness to assume the position as Trustee of the Fund and all 

the obligations in accordance with the Deed, all relevant laws and rules of law. The Trustee 

shall be entitled to be indemnified out of the Fund against all losses, damages or expenses 

incurred by the Trustee in performing any of its duties or exercising any of its powers under 

this Deed in relation to the Fund. The right to indemnity shall not extend to loss occasioned 

by breach of trust, wilful default, negligence, fraud or failure to show the degree of care and 

diligence required of the Trustee having regard to the provisions of the Deed. 

16.8 Trustee’s Disclosure of Material Litigation 

As 31 October 2011, the Trustee is not engaged in any material litigation and arbitration, 

including those pending or threatened, and is not aware of any facts likely to give rise 

to any proceedings which might materially affect the business/financial position of the 

Trustee and any of its delegates. 

16.9 Trustee’s Delegates 

The Trustee has appointed The Hongkong And Shanghai Banking Corporation Ltd as 

custodian of the quoted and unquoted local investments of the Fund. The assets of the 

Fund are held through their nominee company, HSBC Nominees (Tempatan) Sdn Bhd. If

131 

and when the Fund should invest overseas, HSBC Institutional Trust Services (Asia) Limited 

will be appointed as the custodian of the foreign assets of the Fund. Both The Hongkong 

And Shanghai Banking Corporation Ltd and HSBC Institutional Trust Services (Asia) Limited 

are wholly owned subsidiaries of HSBC Holdings Plc, the holding company of the HSBC 

Group. The custodian’s comprehensive custody and clearing services cover traditional 

settlement processing and safekeeping as well as corporate related services including cash 

and security reporting, income collection and corporate events processing. All investments 

are registered in the name of the Fund or to the order of the Fund. The custodian acts only 

in accordance with instructions from the Trustee. 

The Trustee shall be responsible for the acts and omissions of its delegate as though they 

were its own acts and omissions. 

However, the Trustee is not liable for the acts, omissions or failure of third party depository 

such as central securities depositories, or clearing and/or settlement systems and/or 

authorised depository institutions, where the law or regulation of the relevant jurisdiction 

requires the Trustee to deal or hold any asset of the Fund through such third parties. 

Trustee’s Delegates 

i. The Hongkong And Shanghai Banking Corporation Limited (As Custodian) and assets 

held through HSBC Nominees (Tempatan) Sdn Bhd (Co. No. 258854-D) 

no. 2, Leboh Ampang 


tel. No.: 03-2070 0744 Fax No.: 03-2072 9787 

ii. 

HSBC Institutional Trust Services (Asia) Limited 

6 th Floor, Tower One 

hsBC Centre 

no. 1, Sham Mong Road 

Kowloon, Hong Kong 

tel. No.: (852)2533 6333 Fax No.: (852)2869 6120 

16.10 Anti-money laundering provisions 

The Trustee has in place policies and procedures across the HSBC Group, which may 

exceed local regulations. Subject to any local regulations, the Trustee shall not be liable for 

any loss resulting from compliance of such policies, except in the case of negligence, willful 

default or fraud of the Trustee. 

16.11 Statement of Disclaimer 

The Trustee is not liable for doing or failing to do any act for the purpose of complying with 

law, regulation or court orders.


RELATED PARTY TRANSACTIONS/ 

CONFLICT OF INTEREST 

The Manager 

Save for the transactions as disclosed below, as at the LPD, the Manager is not aware of any 

existing or potential related-party-transactions involving the Funds, the Manager, promoters, 

vendors and/or persons connected to them: 

Name Of Party 

Involved In The Nature Of Name Of 

Transaction Transaction Related Party Relationship 

The Manager Payment of the Investment Both the Manager and 

management fees to the Manager Investment Manager are 

Investment Manager. 

wholly owned 

subsidiaries of MHB. 

The Manager Payment of annual MAMIHL Manulife Financial 

management fees for 

Corporation, the ultimate 

the Target Funds. 

holding company of 

MAMIHL, is a substantial 

shareholder of MHB, the 

holding company of the 

Manager. 

The Manager Providing compliance, MHB the Manager is a wholly 

internal audit, human 

owned subsidiary of 

resource, finance, 

MHB. 

corporate secretarial and 

legal services to the 

Manager. 

The Manager Providing product MIB Both the Manager and 

development and 

MIB are wholly owned 

marketing services to 


the Manager. 

The Manager Providing information MTS Both the Manager and 

technology services to 

MTS are wholly owned 

the Manager. 


It is the Manager’s policy that all transactions with any related parties are entered into in the normal 

course of business and have been established on terms and conditions that are not materially 

different from that obtainable in transactions with unrelated parties and dealings with the related 

parties are transacted at arm’s length basis.

133 

The Manager has in place policies and procedures to prevent and deal with any conflict of interest 

situations that may arise such as the regular disclosure of securities dealing by all employees, 

directors and members of the Investment Committee to the compliance unit for verification. In 

addition, there are adequate segregation of duties to ensure proper checks and balances are 

in place in the areas of fund management, sales administration and marketing. Policies and 

procedures are also in place to deal with any potential conflict of interest where members of the 

Investment Committee are also directors of other asset management companies. Where conflicts 

of interest arise, members of the Investment Committee will abstain from making a decision. 

Subject to any legal requirement, the Manager, or any related corporation of the Manager, or 

any officers or directors of any of them, may invest in the Fund. The directors of the Manager will 

receive no payments from the Fund other than distributions that they may receive as a result of 

investment in the Fund. No fees other than the ones set out in this Prospectus have been paid to 

any promoter of the Fund or the Manager for any purpose. 

The Manager has also internal policies which regulates its employees’ securities dealings. 

The Trustee 

As HSBC (Malaysia) Trustee Berhad is the Trustee and Manager’s delegate (fund valuation function) 

there may be proposed related party transaction involving or in connection with the Fund under 

the following circumstances: 

a) Where the fund invests in instruments offered by the related party of the Trustee (e.g 

placement of monies, structured products, etc); 

b) Where the fund is being distributed by the related party of the Trustee as Institutional Unit 

Trust Adviser (IUTA); 

c) 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 

d) Where the fund obtains financing as permitted under the Securities Commission’s 

Guidelines on Unit Trust, from the related party of the Trustee. 

The Trustee has in place policies and procedures to deal with conflict of interest, if any. The Trustee 

will not make improper use of its position as the owner of the fund’s assets to gain, directly or 

indirectly, any advantage or cause detriment to the interests of unit holders. Any related party 

transaction is to be made on terms which are best available to the fund and which are not less 

favourable to the fund than an arms-length transaction between independent parties. 

Subject to the above and any local regulations, the Trustee and/or its related group of companies may 

deal with each other, the fund or any unit holder or enter into any contract or transaction with each 

other, the fund or any unit holder or retain for its own benefit any profits or benefits derived from 

any such contract or transaction or act in the same or similar capacity in relation to any other scheme.


STATEMENT OF CONSENT 

The Trustee, the Trustee’s delegate, the Manager’s delegate (fund valuation function), the 

Manager’s delegate (compliance, internal audit, human resource, finance, corporate secretarial 

and legal), the Manager’s delegate (product development and marketing), the Manager’s delegate 

(information technology services), the Investment Manager, the Auditors, the Banker and the 

Solicitors have given their consent to the inclusion of their names in the form and context in which 

such names appear in this Master Prospectus and have not withdrawn such consent. 

The Tax Adviser has given their consent to the inclusion of their names and the Tax Adviser’s letter 

on Taxation of the Fund and Unit Holders in the form and context in which it appears in this Master 

Prospectus and has not withdrawn such consent.

section 19 

TAX ADVISER’S LETTER ON the 

TAXATION OF THE FUNDs AND UNIT HOLDERS 

(Prepared for inclusion in this Master Prospectus) 

135 

Deloitte KassimChan Taxation Services Sdn Bhd 

Level 16, Uptown 1, 

Damansara Uptown 

1, Jalan SS21/58, 

47400 Petaling Jaya, Selangor 

The Board of Directors 

Manulife Unit Trusts Berhad 





9 December 2011 

TAXATION OF THE FUND AND UNITHOLDERS 

• MANULIFE INVESTMENT – CHINA VALUE FUND 

• MANULIFE INVESTMENT – GLOBAL RESOURCES FUND 

• MANULIFE INVESTMENT – INDIA EQUITY FUND 

Dear Sirs, 

1. This letter has been prepared for inclusion in this Master Prospectus dated 7 January 2012 in 

connection with the offer of units in the abovementioned Funds (each of the Funds is referred 

to hereinafter as “the Fund”).. 

2. TAXATION 

The following is general information based on Malaysian tax law in force at the time of 

lodging this Master Prospectus with the Securities Commission Malaysia and investors should 

be aware that the tax law may be changed at any time. To an extent, the application of tax 

law depends upon an investor’s individual circumstances. The information provided below 

does not constitute tax advice. The Manager therefore recommends that an investor consult 

his accountant or tax adviser on questions about his individual tax position. 

As the Fund’s Trustee is resident in Malaysia, the Fund is regarded as resident in Malaysia 

and is liable to pay Malaysian income tax (“income tax” or “tax”). The taxation of the Fund is 

governed principally by Sections 61 and 63B of the Malaysian Income Tax Act, 1967 (“MITA”). 

Unitholders are also liable to pay income tax on income distributions paid by the Fund.

136 

section 19 




3. TAXATION OF THE FUND 

3.1 Income Tax 

The income of the Fund in respect of dividends, interest or profits from deposits and other 

investment income (other than income which is exempt from tax) derived from or accruing in 

Malaysia is liable to income tax. The income tax rate applicable to the Fund is 25%. 

Profit from disposal of share investments, tax exempt dividends and tax exempt interest as listed 

in the Appendix attached received by the Fund are not subject to income tax. The Fund may be 

receiving income such as exit fee which will be subject to tax at the rate of 25 per cent. 

Discount or profit received from the sale of bonds or securities issued by Pengurusan 

Danaharta Nasional Berhad or Danaharta Urus Sendirian Berhad within and outside Malaysia 

is exempt from the payment of income tax. 

The Fund may receive dividends, profits and other income from investments outside Malaysia. 

Income derived from sources outside Malaysia and received in Malaysia by a resident unit 

trust is exempt from Malaysian income tax. However, such income may be subject to foreign 

tax in the country from which the income is derived. 

Income received by the Fund from Sukuk Ijarah, other than convertible loan stock, issued in 

any currency by 1Malaysia Sukuk Global Berhad and Sukuk Issue which has been issued by 

the Malaysia Global Sukuk Inc is exempt from the payment of income tax. 

The tax treatment of hedging instruments would depend on the particular hedging 

instruments entered into. Generally, any gain/ loss relating to the principal portion will be 

treated as capital gain/ loss. Gains/ losses relating to the income portion would normally be 

treated as revenue gains/ losses. The gain/ loss on revaluation will only be taxed or claimed 

upon realisation. Any gain/ loss on foreign exchange is treated as capital gain/ loss if it arises 

from the revaluation of the principal portion of the investment. 

Expenses being manager’s remuneration, maintenance of register of Unitholders, share 

registration expenses, secretarial, audit and accounting fees, telephone charges, printing and 

stationery costs and postage, which are not allowed under the general deduction rules, 

qualify for a special deduction, subject to a minimum of 10% and a maximum of 25% of such 

expenses pursuant to Section 63B of the MITA. 

The tax credit attached to taxable dividends received by the Fund i.e. tax deducted at source 

at the prevailing tax rate is available for set-off against tax payable by the Fund. No additional 

tax will be payable by the Fund on the taxable dividends received. However, such tax or part 

thereof will be refundable to the Fund if the total tax so deducted at source exceeds the tax 

liability of the Fund by virtue of deduction of allowable expenses.

137 

With effect from the year of assessment 2008, a single-tier company income tax system has 

replaced the imputation system. The Fund is not liable to tax on any dividends paid, credited 

or distributed to the Fund under the single tier tax system, where the company paying such 

dividend is not entitled to deduct tax under the MITA. 

3.2 Real Property Gains Tax (“RPGT”) 

Gains on disposal of investments by the Fund will not be subject to income tax but where the 

investments represent shares in real property companies, such gains may be subject to RPGT 

under the RPGT Act, 1976. A real property company is a controlled company which owns or 

acquires real properties or shares in real property companies with a market value of not less 

than 75% of its total tangible assets. A controlled company is a company which does not 

have more than 50 members and is controlled by not more than 5 persons. 

Pursuant to the RPGT (Exemption) (No.2) Order 2009, gains on disposal of shares in real 

property companies by the Fund on or after 1st January 2010 and held for 5 years or less will 

be subject to RPGT at an effective rate of 5%. It is proposed that from 1st January 2012, the 

effective RPGT rate for disposals of real property held up to 2 years to be increased from 5% 

to 10%. However, the rate for disposals of real property after 2 years and within 5 years will 

remain unchanged. 

4. TAXATION OF UNITHOLDERS 

4.1 Taxable Distribution 

Unitholders will be taxed on an amount equivalent to their share of the total taxable income 

of the Fund to the extent such income is distributed to them. Taxable distributions carry a tax 

credit in respect of the tax chargeable on that part of the Fund. Unitholders will be subject to 

tax on an amount equal to the net taxable distribution plus attributable underlying tax paid 

by the Fund. 

Income distributed to Unitholders is generally taxable as follows in Malaysia :- 

Unitholders 

Malaysian Tax Rates 

Malaysian tax residents: 

• Individual and non-corporate • Progressive tax rates ranging 

unitholders (such as co-operatives, from 0% to 26% 

associations and societies) 

• Trust bodies • 25%

138 

section 19 




Unitholders 

Malaysian Tax Rates 

• Corporate Unitholders 

i. A company with paid up capital in • 20% for every first RM500,000 of 

respect of ordinary shares of not 

chargeable income 

more than RM2.5 million where the • 25% for chargeable income in excess 

paid up capital in respect of ordinary of RM500,000 

shares of other companies within 

the same group as such company is 

not more than RM2.5 million 

(at the beginning of the basis period 

for a year of assessment) 

ii. Companies other than those in (i) • 25% 

above 

Non-Malaysian tax residents: 

• Individual and non-corporate Unitholders • 26% 

• Corporate Unitholders and trust bodies • 25% 

The tax credit that is attributable to the income distributed to the Unitholders will be available 

for set off against tax payable by the Unitholders. There is no withholding tax on taxable 

distributions made to non-resident Unitholders. 

4.2 Tax Exempt Distribution 

Tax exempt distributions made out of gains from realization of investments and other exempt 

income earned by the Fund will not be subject to Malaysian tax in the hands of Unitholders, 

whether individual or corporate, resident or non-resident. All Unitholders do not pay tax on 

that portion of their income distribution from the Fund’s distribution equalisation account. 

4.3 Distribution Voucher 

To help complete a Unitholder’s tax returns, the Manager will send the Unitholder a distribution 

voucher as and when distributions are made. This sets out the various components of the 

income distributed and the amount of attributable income tax already paid by the Fund. 

4.4 Sale, Transfer or Redemption of Units 

Any gains realized by a Unitholder on the sale, transfer or redemption of his units are generally 

tax-free capital gains unless the Unitholder is an insurance company, a financial institution or 

a person trading or dealing in securities. Generally, the gains realized by these categories of 

Unitholders constitute business income on which tax is chargeable.

139 

4.5 Reinvestment of Distribution 

Unitholders who receive their income distribution by way of investment in the form of the 

purchase of new units will be deemed to have received their income distribution after tax and 

reinvested that amount in the Fund. 

4.6 Unit Splits 

Unit splits issued by the Fund are not taxable in the hands of the Unitholders. 

Yours faithfully 

JACLYN TAN 

Executive Director 

Tax Exempt Interest Income of Unit Trusts 

1. Interest or discount paid or credited to unit trusts in respect of the following will be exempt 

from tax: - 

• Securities or bonds issued or guaranteed by the Government; or 

• Debentures or Islamic Securities, other than convertible loan stock, approved by the 

Securities Commission Malaysia; or 

• Bon Simpanan Malaysia issued by the Central Bank of Malaysia. 

2. Interest derived from Malaysia and paid or credited by any bank or financial institution 

licensed under the Banking and Financial Institutions Act 1989 or the Islamic Banking Act 

1983. 

3. Interest received in respect of bonds and securities issued by Pengurusan Danaharta Nasional 

Berhad within and outside Malaysia. 

4. Interest in respect of any savings certificates issued by the Government. 

5. Interest in respect of Islamic securities originating from Malaysia, other than convertible loan 

stock, issued in any currency other than Ringgit and approved by the Securities Commission 

Malaysia or Labuan Financial Services Authority.


DOCUMENTS AVAILABLE 

FOR INSPECTION 

Unit Holders may inspect without charge, at the registered offices of the Manager and the Trustee, 

for a period of not less than 12 months from the date of this Master Prospectus, the following 

documents or copies thereof, where applicable: 

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

(g) 

(h) 

The Deed of the Fund. 

Any material contract or document referred to in the Master Prospectus. 

The latest annual and interim reports of the Fund. 

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

which is extracted or referred to in the Master Prospectus. 

The audited accounts of the Manager and the Fund for the last 3 financial years (or from the 

date of incorporation/commencement if less than 3 years), preceding the date of this Master 

Prospectus. 

Latest audited accounts of the Manager and the Funds for the current financial year (where 

applicable). 

Any consent given by experts or persons whose statement appears in the Master Prospectus. 

Writ and relevant cause papers for all current material litigation and arbitration disclosed in 

the Master Prospectus.

section 21 

UNIT TRUST LOAN FINANCING 

RISK DISCLOSURE STATEMENT 

141 

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, attitudes to risk 

and financial circumstances. You should be aware of the risks, which would include the following: 

(a) The higher the margin of financing (that is, the amount of money you borrow for every Ringgit 

of your own money that you put in as deposit or down payment), the greater the potential for 

losses as well as gains. 

(b) 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. 

(c) If unit prices fall beyond a certain level, you may be asked to provide additional acceptable 

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 to settle your loan. 

(d) Returns on unit trusts are not guaranteed and may not be earned evenly over time. This 

means that there may be some years where returns are high and other years where losses 

are experienced instead. 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. 

The brief statement cannot disclose all the risks and other aspects of loan financing. You should 

therefore carefully study the terms and conditions before you decide to take the loan. If you are 

in doubts in respect of any of this risk disclosure statement or the terms of the loan financing, you 

should consult the institution offering the loan. 

ACKNOWLEDGEMENT OF RECEIPT OF RISK DISCLOSURE STATEMENT 

I acknowledge that I have received a copy of this Unit Trust Loan Financing Risk Disclosure 

Statement and understand its contents. 

Signature 

: _____________________________________________________________________ 

Full Name :_____________________________________________________________________ 

Date 

:_____________________________________________________________________


DIRECTORS’ DECLARATION 

This Master Prospectus dated 7 January 2012 in relation to the Manulife Investment - China Value 

Fund and Manulife Investment - Global Resources Fund and Manulife Investment - India Equity 

Fund has been reviewed and approved by us, the Directors of Manulife Unit Trusts Berhad, and 

we collectively and individually accept full responsibility for the accuracy of the information. 

Having made all reasonable inquiries, we confirm to the best of our knowledge and belief, 

there are no false or misleading statements, or omission of other facts which would make any 

statement in the Master Prospectus dated 7 January 2012 for the Manulife Investment - China 

Value Fund and Manulife Investment - Global Resources Fund and Manulife Investment - India 

Equity Fund false or misleading. 

Directors: 

___________________________________ 

EDWARD OOI TEE HEE 

___________________________________ 

Datuk Seri Panglima Mohd 

Annuar bin Zaini 

___________________________________ 

Michael Chan Yui Lung 

___________________________________ 

Datuk Ismail Bin Haji Ahmad 

___________________________________ 

David Wong Tai Wai 

___________________________________ 

Christopher Franz Bendl 

___________________________________ 

Ahmad Riza Bin Basir 

Dated:

section 23 

LOCATION OF AUTHORISED 

UNIT TRUST CONSULTANTS 

143 

Regional Suport Centre Address Tel. No. 

KUALA LUMPUR 10 th Floor, Menara Manulife 03 - 2719 9112 

no. 6, Jalan Gelenggang 

damansara Heights 

50490 KUALA LUMPUR 

PETALING JAYa lot T101-T106, 3 rd Floor, Centre Point 03 - 7727 7772 

no. 3, Leboh Bandar Utama 

Bandar Utama 

47800 Petaling Jaya, SELANGOR 

seberang perai No.1797-1-05 (First Floor) 04 - 502 7916 / 

Kompleks Auto World 04 - 502 7917 

Jalan Perusahaan, Juru Interchange 

13600 Perai, Penang 

IPOH 9 th Floor, M&A Building 05 - 254 2295 

no. 52A, Jalan Sultan Idris Shah 

30000 Ipoh, PERAK 

JOHOR BAHRU 2 nd Floor, Bangunan Ang 07 - 235 2549 

no. 1, Jalan Jeram, Taman Tasek 07 - 235 0775 

80200 Johor Bahru, JOHOR 

KUCHING 1 st Floor, Lot 127-129 082 - 424 755 

section 54 082 - 419 755 

Kuching Town Land District 

Jalan Petanak 

93100 Kuching, SARAWAK 

SIBU 3 rd Floor, Grand Merdin 084 - 324 755 

no. 131, Kampung Nyabor Road 084 - 333 976 

96000 Sibu, SARAWAK 084 - 321 613


13 th Floor, Menara Manulife, 

6, Jalan Gelenggang, 50490 Kuala Lumpur 

Email: my_utservice@manulife.com 

Website: www.manulife.com.my 

Tel: 03 - 2719 9228 

Regional Support Centres 

Kuala Lumpur Tel: 03 - 2719 9112 

Seberang Perai Tel: 04 - 502 7916 / 04 - 502 7917 

Ipoh tel: 05 - 254 2295 / 96 

Petaling Jaya Tel: 03 - 7727 7618 / 7772 

Johor Bahru Tel: 07 - 235 2549 / 0775 

Sibu tel: 084 - 324 755 / 084 - 333 976 

Kuching tel: 082 - 424 755 / 082 - 419 755 For your future TM

trustworthy - Manulife Insurance Berhad

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