PNB STRUCTURED INVESTMENT FUND
(PNB SIF)
Type of Fund Income and Growth Fund
Category of Fund Mixed Asset Fund
External Investment Manager Permodalan Nasional Berhad (38218-X)
Structured Products Issuer Deutsche Bank (Malaysia) Berhad (312552-W)
PNB REIT Manager Pelaburan Hartanah Nasional Berhad (175967-W)
Trustee Amanahraya Trustees Berhad (766894-T)
Investment Objective The Fund aims to provide investment opportunities that generate reasonable returns and growth over the tenure of the Fund while endeavouring to provide capital protection to Unit Holders.
 
Approved Fund Size of PNB SIF The approved fund size of the Fund is 3 billion Units
Maturity Date 5 July 2013
Investors' Profile The Fund is suitable for investors with the following profile:-
  • Seek capital protection
  • Wish to participate in the potential upside of global equities, interest rates
  • Have low risk tolerance
  • Have a medium-term investment horizon
Benefit for Investors

Free Insurance Coverage
Free insurance coverage on group personal accident takaful is provided for Unit Holders aged between 18-69 with a minimum investment of ten thousand (10,000) Units at any point of time in PNB SIF. The amount of insurance is equal to the number of Units invested in the ratio of RM1.00 insurance coverage for each Unit, subject to a maximum amount of RM100,000 per Unit Holder of the Fund. The terms and conditions of the free insurance coverage shall apply .

Accessibility
Unit Holders can easily access any Distribution Branch to perform any enquiry or transaction.

Asset Allocation
  • Up to 80% of the Fund’s Net Asset Value may be invested in Structured Products; and
  • Up to 50% of the Fund’s Net Asset Value may be invested in PNB REIT; and
  • Up to 80% in any Other Investments Permitted by the Deed which include a diversified portfolio of securities, primarily on the Bursa Malaysia, unlisted securities and fixed income securities; and
  • A minimum of 2% in cash and money market instruments for liquidity purposes.
Benchmark The benchmark of the Fund is Maybank 12-month fixed deposit rate. The quoted fixed deposit rates are readily available at any Maybank branch.
Illustration of the Structure of PNB SIF
Capital Protection Mechanism

The Fund is not a Capital Protected Fund but it has a capital protected mechanism embedded in its structure.

The Fund’s portfolio is structured to ensure that your capital can be preserved through investments in a combination of Structured Products and PNB REIT whilst capitalizing on the returns derived from investing in PNB REIT as well as the potential returns of investing in Structured Products derived from exposure to the performance of the underlying asset(s).

The Fund’s capital protected mechanism is structured in the following manner:

(i) Via Structured Products (which have been issued in accordance with such relevant regulatory requirements as may be imposed by the Securities Commission and Bank Negara Malaysia) whereby any principal invested in the Structured Products is protected at maturity.

  • Principal protection may be sought through financial instruments purchased by the issuer which the issuer considers appropriate for protecting the principal invested in the Structured Products and such financial instruments may in turn be managed under Dynamic Investment Allocation Mechanism (DIAM).
  • The financial instruments could take the form of money market instruments (which generate income on a short term low risk basis) and/or fixed income instruments (which are bought at a discount to provide a nominal value equivalent to the capital sought to be protected at maturity). Interest earned or money not invested on those financial instruments may be used to purchase option(s) on the underlying(s).
  • Under the DIAM, exposure is allocated between the underlying and risk free asset(s), depending on the performance of the underlying. Should the underlying underperforms, more exposure is then allocated to the risk free asset(s).

(ii) PNB REIT’s capital protected mechanism:-

  • The Fund will also be investing in units of PNB REIT which offer potential regular income and upside potential through exposure in properties. PNB REIT has principal protection features whereby its Properties have a buy-back option from the respective vendors to repurchase the Properties at the highest price offered by third party purchasers or the original purchase price plus capital expenditure on the respective property, whichever is higher , and subject to the REITs Guidelines.
Detailed Information on the Investments of PNB SIF Structured Products

The Structured Products offer principal or capital protection at maturity with the potential upside exposure linked to one or more assets such as global equities, commodities, currencies interest rates, indices or any other underlying(s) approved by the Investment Committee.

Principal protection may be provided through the purchase of financial instruments which the issuer considers appropriate for protecting the principal invested in the Structured Products and such financial instruments may in turn be managed under DIAM. Principal invested in the Structured Products is protected if the Structured Products are redeemed on the maturity date of the Structured Products.

The Fund will adopt an active trading strategy in the portfolio of Structured Products, whereby the Investment Manager has the option to increase or decrease the Fund’s allocation in Structured Products, taking into account analysis and considerations on the prevailing market and economy outlook, valuations and liquidity requirements. Investors should note that under this active asset allocation strategy, not all Structured Products invested into by the Fund may necessarily be held to maturity, and Structured Products not held to maturity will not be subject to principal protection.

 

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Investors are advised to read and understand the contents of the Master Prospectus dated 17 September 2011 and expires on 16 September 2012 before investing. This prospectus has been registered and lodged with the Securities Commission. Among others, investor should consider the fees and charges involved. The price of units and distributors payable, if any, may go down as well as up. Past performance of the fund should not be taken as indicative of its future performance. Units will only be issued on receipt of an application form referred to in and accompanying the Prospectus, which can be obtained at Amanah Mutual Berhad, Amanah Saham Nasional Berhad, any Maybank and Bank Rakyat distribution branches.