PRODUCT HIGHLIGHTS SHEET

for

Affin Hwang Enhanced Deposit Fund

Date of issuance: 1 December 2021

RESPONSIBILITY STATEMENT

This Product Highlights Sheet has been reviewed and approved by the directors and/or authorized committee
and/or persons approved by the Board of Affin Hwang Asset Management Berhad 199701014290 (429786-
T) 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, that there are no false or
misleading statements or omissions of other facts which would make any statement in the Product Highlights
Sheet false or misleading.

STATEMENT OF DISCLAIMER

The Securities Commission Malaysia has authorised the issuance of the Affin Hwang Enhanced Deposit Fund
(“the Fund”) and a copy of this Product Highlights Sheet has been lodged with the Securities Commission
Malaysia.

The authorisation of the Fund and lodgement of this Product Highlights Sheet, should not be taken to indicate
that the Securities Commission Malaysia recommends the Fund or assumes responsibility for the correctness
of any statement made or opinion or report expressed in this Product Highlights Sheet.

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

! YOU SHOULD NOT MAKE PAYMENT IN CASH TO A UNIT TRUST CONSULTANT OR ISSUE A CHEQUE
IN THE NAME OF A UNIT TRUST CONSULTANT.
 This Product Highlights Sheet only highlights the key features and risks of this Fund. Investors are advised to
request, read and understand the Prospectus of the Fund before deciding to invest.

PRODUCT HIGHLIGHTS SHEET

AFFIN HWANG ENHANCED DEPOSIT FUND

BRIEF INFORMATION ON THE PRODUCT

1. What is this product about?

Affin Hwang Enhanced Deposit Fund is an open-ended money market fund, issued and managed in-house by the
Manager.

The Fund aims to provide investors with a regular income stream and high level of liquidity to meet cash flow requirement
while maintaining capital preservation.

PRODUCT SUITABILITY

2. Who is this product suitable for?

This Fund is designed for retail investors and is primarily suitable for low risk Investors who are generally conservative, risk
averse and prefer a short-term investment horizon.

KEY PRODUCT FEATURES

3. What am I investing in?

Launch Date 18 April 2005

Tenure The Fund is an open-ended fund which means there is no maturity date for the Fund and the
Fund may only be terminated in accordance with the terms of the Prospectus and the provisions
of the Deed.
Asset Allocation The Fund asset allocation range is as follows:-

Asset Class % of the Fund’s

NAV
Debenture, money market instruments and deposit with remaining
90% to 100%
a maturity period of not more than 365 days
Debenture, money market instruments and deposit with remaining
a maturity period of more than 365 days but fewer than 732 days 0 to 10%

Benchmark Maybank Overnight Repo Rate

Investment Strategy The Fund will invest in a diversified portfolio of debentures, money market instruments and
deposits with Financial Institutions.
The Fund will only look to invest in debentures and money market instruments that meet a
minimum investment grade rating of P1 by RAM or MARC -1 by MARC. The selection of
individual debentures and money market instruments will depend largely on its credit quality
where the respective issuers will have strong ability to meet their financial obligations, healthy
cash-flow, the collateral type, value, claims priority as well as offer highest safety for timely
payment of interest and principal. In the event the rating or a particular security or an issuer is
downgraded resulting in non-compliance, we shall, within 6 months, take steps to replace such
security or issuer.
While we typically take an active trading policy, the frequency of our trades will be dependent
on prevailing market opportunities as well as liquidity needs.
We hold option to reduce the Fund’s exposure into any investments that we believe may be
impacted from the prevailing market conditions. However, focus will remain on constructing a
portfolio of liquid investments that are able to produce relative certainty of meeting its financial
obligations.
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 Distribution Policy The Fund endeavour to distribute income on a monthly basis.

Minimum Initial
MYR1,000
Investment*
Minimum Additional
MYR 100
Investment*
Minimum Repurchase
100 Units
Amount
Minimum Holding of
1,000 Units
Units*

Note: Please refer to the Fund’s Prospectus for further details of the Fund.

4. Who am I investing with?

Relevant parties’ information:

The Manager Affin Hwang Asset Management Berhad
The Trustee HSBC (Malaysia) Trustee Berhad
Trustee’s Delegate Local custodian:
The Hongkong And Shanghai Banking Corporation Limited (as
custodian) and assets held through:-
HSBC Nominees (Tempatan) Sdn. Bhd. (258854-D)
HSBC Bank Malaysia Berhad (127776-V)
Foreign Custodian:
The Hongkong And Shanghai Banking Corporation Limited
Tax Adviser Ernst & Young Tax Consultants Sdn. Bhd. (179793k)
Auditor/Reporting Accountants PricewaterhouseCoopers

5. What are the possible outcomes of my investment?

The Fund is a money market fund that invests in a diversified portfolio of debentures, money market instruments and
deposits with Financial Institutions.

Unlike fixed deposits which generally provide a guarantee on capital invested and carry specific rate of return, the Fund does
not provide a guarantee on capital contributed nor does it guarantee a fixed rate of return.

KEY RISKS

6. What are the key risks associated with this product?

General risks
• Market risk – Market risk arises due to fluctuations in market values of investments. Such fluctuations occur because
of factors that affect the entire market. Factors such as economic growth, political stability and social environment
are some examples of conditions that have an impact on businesses, whether positive or negative. Market risk cannot
be eliminated but may be reduced through diversification. It stems from the fact that there are economy‐wide perils or
instances of political or social instability which threaten all businesses. Hence, the Fund will be exposed to market
uncertainties and no matter how many securities are held, fluctuations in the economy, political instability and social
unrest will affect the market price of the Fund’s investments either in a positive or negative way.
• Manager’s risk – The performance of the Fund depends in part on the experience and expertise of the investment
managers and this is of particular importance when the Fund has a narrower investment scope e.g. investments in
certain countries or sectors only. The lack of experience and expertise in those countries or sectors may jeopardize
the performance of the Fund.

*At our discretion, we may reduce the transaction value and Units, including for transactions made via digital channels, subject to terms and conditions
disclosed in the respective channels.

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 • Performance risk – The performance of the Fund depends on the financial instruments that the Fund purchases. If
the instruments do not perform within expectation or if there is a default, then, the performance of the Fund will be
impacted negatively. The performance of the Fund may also be impacted if the allocation of assets is not properly done.
This is where the experience and expertise of the investment managers are important and the risk on the lack of
experience and expertise of the investment managers is highlighted above. On that basis, there is never a guarantee
that investing in the Fund will produce the desired investment returns or on the distribution of income.
• Inflation risk – This is the risk that your investment in the Fund may not grow or generate income at a rate that
keeps pace with inflation. This would reduce your purchasing power even through the value of the investment in
monetary terms has increased.
• Liquidity risk – This risk refers to two scenarios. The first is where an investment cannot be sold due to unavailability
of a buyer for that investment. The second scenario exists where the investment, by its nature, is thinly traded. This
will have the effect of causing the investment to be sold at below its actual value.
• Loan financing risk – This risk occurs when you take a loan/financing to finance your investment. The inherent risk
of investing with borrowed money includes you being unable to service the loan repayments. In the event Units are
used as collateral, you may be required to top-up your existing instalment if the prices of Units fall below a certain
level due to market conditions. Failing which, the Units may be sold at a lower net asset value per unit as compared
to the net asset value per unit at the point of purchase towards settling the loan.
• Risk of non-compliance – This is the risk that the Manager of the Fund may not follow the rules set out in the Fund’s
constitution, or the law that governs the Fund, or will act fraudulently or dishonestly. The non- compliance may expose
the Fund to losses particularly caused by the fraudulent or dishonest acts or omissions of the Manager.
• Operational risk – This risk refers to the possibility of a breakdown in our internal controls and policies. The
breakdown may be a result of human error, system failure or fraud where our employees collude with one another.
This risk may cause monetary loss and/or inconvenience to you. We will regularly review our internal policies and
system capability to mitigate this risk. Additionally, we maintain a strict segregation of duties to mitigate instances of
fraudulent practices amongst our employees.
• Political risk – The Fund is exposed to the local political situation or environment at all times. Any change or instability
in this regard may more likely than not result in less than favourable implications on the Fund.For example, a change
in political leadership or political stance which subsequently translates into changes or reforms in government economic
or legislative policies, some of which may affect Investors directly or indirectly, especially when there is a change from
a business‐friendly government and policy model to one which is less business friendly. This may result in situations
such as increased transaction costs, taxes, administrative requirements and restrictions in investments or holding
periods.
• Regulatory risk – So long as the Fund continues to invest in a particular country, the Fund will be exposed to
changes in the regulatory regime of that country. Perhaps a regulatory regime that changes constantly is in respect
of tax treatment of investment income. Investors should not presume that the tax treatment of a particular investment
will be the same in perpetuity. A change in the tax treatment of a particular investment would mean lower returns for
the Fund and vice versa.

Note: Please refer to the Fund’s Prospectus on further detail of each risk.

Specific risks
• Credit and default risk – Credit risk relates to the creditworthiness of the issuers of the debentures or money market
instruments (hereinafter referred as “investment”) and their expected ability to make timely payment of interest and/or
principal. Any adverse situations faced by the issuer may impact the value as well as liquidity of the investment. In
the case of rated investment, this may lead to a credit downgrade. Default risk relates to the risk of an issuer of the
investment either defaulting on payments or failing to make payments in a timely manner which will in turn adversely
affect the value of the investment.
• Interest rate risk – This risk refers to the impact of interest rate changes on the valuation of debentures or money
market instruments (hereinafter referred as “investment”). When interest rates rise, the investment prices generally
decline and this may lower the market value of the investment. The reverse may apply when interest rates fall.
• Liquidity risk - Liquidity risk refers to the ease of liquidating an asset depending on the asset’s volume traded in the
market. If the Fund holds assets that are illiquid, or are difficult to dispose of, the value of the Fund will be negatively
affected when it has to sell such assets at unfavourable prices.

Note: Please refer to the Fund’s Prospectus on further detail of each risk.

It is important to note that events affecting the investments cannot always be foreseen. Therefore, it is not
possible to protect investments against all risks. You are recommended to read the whole Prospectus to assess
the risks associated with the Fund. If necessary, you should consult your professional adviser(s) for a better
understanding of the risks.
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 PERFORMANCE

Average Total Return

1 Year 3 Year 5 Year Since
(1/5/20 – 30/4/21) (1/5/18 – 30/4/21) (1/5/16 – 30/4/21) Commencement
(14/6/05 – 30/4/20)

Fund 3.35% 3.53% 3.60% 3.34%

Benchmark 1.48% 1.72% 1.79% 2.07%
Source: Bloomberg/Lipper

Annual Total Return

Financial Year
2021 2020 2019 2018 2017 2016 2015 2014 2013 2012
End (“FYE”)
Fund 2.05% 3.35% 3.73% 3.52% 3.74% 3.68% 3.44% 3.18% 3.01% 2.93%
Benchmark 0.31% 1.48% 1.90% 1.79% 1.80% 2.01% 1.96% 1.80% 1.80% 1.72%
Source: Bloomberg/Lipper

For the period from 1 May 2020 to 30 April 2021, the Fund registered a return of 2.05%, outperforming the benchmark
return of 0.31% by 1.74%.
Basic of calculation and assumption made in calculating the returns
The performance figures are a comparison of the growth/decline in NAV for the stipulated period taking into account all
the distribution payable (if any) during the stipulated period.

Capital return = NAV per Unit end / NAV per Unit begin – 1
Income return = Income distribution per Unit / NAV per Unit ex-date
Total return = (1+Capital return) x (1+Income return) – 1

Income Distribution
FYE 2020 2020 2019
Gross distribution per Unit (sen) 2.56 4.06 1.43
Net distribution per Unit (sen) 2.56 4.06 1.43
Distribution will be made in the form of cash as well as Units in lieu of cash, if any.

Portfolio Turnover Ratio (PTR)

FYE 2021 2020 2019
PTR (times) 24.64 22.76 0.20
The Fund recorded a higher PTR than previous year due to higher trading activities for the financial year.
PAST PERFORMANCE OF THE FUND IS NOT AN INDICATION OF ITS FUTURE PERFORMANCE

FEES & CHARGES

7. What are the fees and charges involved?

There are fees and charges involved and you are advised to consider them before contributing to the Fund.

What will I be charged by the Manager?

Sales charge There will be no Sales Charge for this Fund.
Repurchase charge There will be no Repurchase Charge for this Fund.
Transfer fee There will be no transfer fee imposed on the transfer facility.
Switching fee The Manager does not impose any switching fee. However, if the amount of sales charge of
the fund (or class) that the Unit Holder intends to switch into is higher than the sales charge
imposed by the fund (or class) being switched from, then the difference in the sales charge
between the two (2) funds (or classes) shall be borne by the Unit Holder.
For Investors who invest through the EPF Members’ Investment Scheme (EMIS), you are not
allowed to switch into any of our funds which are non-EMIS.

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What are the key ongoing fees charged to the Fund?
Management fee Up to 0.50% per annum of the NAV of the Fund.
Trustee fee Up to 0.05% per annum of the NAV of the Fund (including local custodian fee but excluding
foreign sub-custodian fee)

Note: Please refer to the Prospectus for further explanation and illustration of the Fund’s fees, charges and
expenses.

ALL FEES AND CHARGES PAYABLE BY YOU ARE SUBJECT TO ALL APPLICABLE TAXES AND / OR DUTIES AS
MAY BE IMPOSED BY THE GOVERNMENT AND / OR THE RELEVANT AUTHORITIES FROM TIME TO TIME.

VALUATIONS AND EXITING FROM INVESTMENT

8. How often are valuations available?

The Fund will be valued on every Business Day and you may obtain the NAV and NAV per Unit of the Fund from
our website at www.affinhwangam.com, our customer service via our toll free number 1-800-88-7080 or email to
[email protected].

9. How can I exit from this investment and what are the risks and costs involved?

You may request to redeem your investments in the Fund at any point in time by completing the repurchase
application form and returning it to us on any Business Day between 8.45 a.m. and 2.30 p.m. Payments will be made
to you within four (4) days from the day the repurchase request is received by us and provided that all
documentations are completed and verifiable.

If you invest through the EMIS, we will remit the repurchase proceeds to EPF by crediting back into your EPF account. If
you are above the age of fifty five (55) years old and invest through the EMIS, we will remit the repurchase proceeds to
you directly.

CONTACT INFORMATION

10. Who should I contact for further information or to lodge a complaint?

1. For internal dispute resolution, you may contact our customer service personnel:
(a) via phone to : 03 – 2116 6000
(b) via fax to : 03 – 2116 6100
(c) via toll free no. : 1-800-88-7080
(d) via email to : [email protected]
(e) via letter : Affin Hwang Asset Management Berhad
Ground Floor, Menara Boustead
69, Jalan Raja Chulan
50200 Kuala Lumpur

Complaints should be made in writing with the following information:

(a) particulars of the complainant which include name, correspondence address, contact number, e-mail address
(if any) and other relevant information;
(b) circumstances of the non-compliance or improper conduct;
(c) parties alleged to be involved in the improper conduct; and
(d) other supporting documentary evidence (if any).

2. If you are dissatisfied with the outcome of the internal dispute resolution process, please refer your dispute to the
Securities Industries Dispute Resolution Centre (SIDREC):
(a) via phone to : 03-2282 2280
(b) via fax to : 03-2282-3855
(c) via email to : [email protected]
(d) via letter to : Securities Industry Dispute Resolution Center (SIDREC)
Unit A-9-1 Level 9, Tower A, Menara UOA Bangsar, No. 5, Jalan Bangsar Utama 1
59000 Kuala Lumpur

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3. You can also direct your complaint to the SC even if you have initiated a dispute resolution process with SIDREC.
To make a complaint, please contact the SC’s Investor Affairs & Complaints Department:
(a) via phone to the Aduan Hotline at : 03 – 6204 8999
(b) via fax to : 03 – 6204 8991
(c) via e-mail to : [email protected]
(d) via online complaint form available at www.sc.com.my
(e) via letter to : Investor Affairs & Complaints Department
Securities Commission Malaysia, No 3 Persiaran Bukit
Kiara, Bukit Kiara, 50490 Kuala Lumpur
4. Federal of Investment Managers Malaysia (FIMM)’s Complaints Bureau:
(a) via phone to : 03 – 20923800
(b) via fax to : 03 – 20932700
(c) via e-mail to : [email protected]
(d) via online complaint form available at : www.fimm.com.my
(e) via letter to : Legal, Secretarial & Regulatory Affairs
Federal of Investment Managers Malaysia
19-06-1, 6th Floor Wisma Tune, No. 19, Lorong Dungun
Damansara Heights,50490 Kuala Lumpur

APPENDIX : GLOSSARY

Board Means the Board of Directors of the Manager.

Bursa Malaysia Means the stock exchange operated by Bursa Malaysia Securities Berhad including such other
name as it may be amended from time to time.
Business Day Means a day on which Bursa Malaysia is open for trading.
Debenture It includes debenture stock, bonds, notes and any other evidence of indebtedness of a
corporation for borrowed moneys, whether or not constituting a charge on the assets of the
corporation.
Deed Deed dated 4 April 2005 as amended by First Supplemental Deed dated 29 December 2005,
Second Supplemental Deed dated 20 February 2006, Third Supplemental Deed dated 18 June
2007, Fourth Supplemental Deed dated 15 October 2008, Fifth Supplemental Deed dated 12
March 2009, Sixth Supplemental Deed dated 19 March 2010, the Seventh Supplemental Deed
dated 18 January 2012, the Eighth Supplemental Deed dated 27 June 2014 and Ninth
Supplemental Deed dated 19 December 2016 entered into between the Manager and the
Trustee including any supplemental and variation thereto.
Deposit(s) Has the same meaning as the definition of "deposit" in the Financial Services Act 2013. For
the voidance of doubt, it shall exclude structured deposit.
EMIS Means EPF Members’ Investment Scheme.
EPF Means Employees Provident Fund.
Financial Institution Means
(a) if the institution is in Malaysia:
(i) a licensed bank;
(ii) a licensed investment bank; or
(iii) a licensed Islamic bank;
(b) if the institution is outside Malaysia, any institution that is licensed, registered, approved or
authorised by the relevant banking regulator to provide financial services.
Fund Refers to Affin Hwang Enhanced Deposit Fund.
Manager / AHAM Refers to Affin Hwang Asset Management Berhad.
MARC Refers to Malaysian Rating Corporation Berhad.
Net Asset Value or Means the value of the Fund’s assets which is determined by deducting the value of all the
NAV Fund’s liabilities from the value of all the Fund’s assets, at the valuation point.
For the purpose of computing the annual management fee and annual trustee fee, the NAV of
the Fund should be inclusive of the management fee and trustee fee for the relevant day.
NAV per Unit Means the NAV of the Fund at a particular valuation point divided by the total number of Units
in Circulation at that point.
Prospectus Means the prospectus for the Fund and includes any supplementary or replacement
prospectus, as the case may be.
RAM Means RAM Rating Services Berhad.
Repurchase Charge Means a fee imposed pursuant to a repurchase request.

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 Sales Charge Means a fee imposed pursuant to a purchase request.
SC Means the Securities Commission Malaysia established under the Securities Commission
Malaysia Act 1993.
short-term Means a period of less than 3 years.
The Trustee HSBC (Malaysia) Trustee Berhad (1281‐T).
Unit or Units Means a measurement of the right or interest of a Unit Holder in the Fund including a fraction
of a unit.
Units in Circulation Means Units created and fully paid. It is the total number of Units issued at a particular
valuation point.
Unit Holder(s), Means the person / corporation registered as a holder of Units, including persons jointly
investor(s), you registered.

Note:
Reference to “day(s)” in the Prospectus will be taken to mean calendar day(s) unless otherwise stated.
Reference to first person pronouns such as “we”, “us” or “our” in the Prospectus means the Manager/AHAM.

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