www.abfmy1.com.my

More about the Fund

1.	What is ABF Malaysia Bond Index Fund ("the Fund")?
2.	Can you tell me more about the index which the Fund tracks?
3.	Why would I want to invest in the Fund?
4.	Does the Fund provide income distribution?
5.	Who are the Manager and Investment Manager for the Fund?

Transaction Details

1.	How do I buy or sell the Fund?
2.	What is the stock short name and stock code of the Fund?
3.	What is the minimum investment amount?
4.	What transaction fees do I need to pay when I buy or sell the Fund?
5.	How is the market price of the Fund determined?
6.	Where can I get the latest price information on the Fund?

Other Fund Information

1.	Will the Fund’s portfolio change?
2.	How long do I need to hold the Fund before selling it? Do the Fund’s units expire?
3.	How do I know if the Fund Manager is doing a good job?
4.	How different is the Fund compared to regular unit trusts?

Trustee Information

1.	Who is the Trustee for the Fund?
2.	What is the role of a Trustee?
3.	Where are the assets? How safe are they?

1. What is ABF Malaysia Bond Index Fund ("the Fund")?

The Fund is Southeast Asia's first bond exchange traded fund listed on Bursa Malaysia on 13 July 2005. It invests in a portfolio of mainly Malaysian government bonds denominated in Ringgit Malaysia. The Fund is an effective and cost efficient index-tracking fund that investors can buy and sell anytime through their stockbroker or via online trading during market trading hours, like any other ordinary stocks.

2. Can you tell me more about the index which the Fund tracks?

The Fund tracks Markit iBoxx® ABF Malaysia Bond Index (Benchmark Index) which consists of mainly Malaysian government bonds. The list of the components may change on a periodical basis and can be obtained from the Annual Report.

The Benchmark Index is managed and administered by International Index Company (IIC), which encompasses the credit derivative, fixed income and FX index businesses within the Markit group.
Markit is a financial information services company with over 1,200 employees in Europe, North America and Asia-Pacific.*
* Source: www.iboxx.com, as at 21 July 2009

3. Why would I want to invest in the Fund?

1.	Accessibility – easy exposure to Malaysian Government Securities with low investment amount compared to investing in bonds directly
2.	Flexibility & liquidity – buy and redeem the Fund anytime at current market price throughout the exchange trading day
3.	Low cost – the Fund has no entry fees. Management fee is 0.1% (unlike an actively managed bond unit trust fee which is normally around 1%)
4.	Transparency – you know what bond holdings you are buying into via the Annual Report
5.	Income distribution – semi-annually (if any)

4. Does the Fund provide income distribution?

Yes, income (if any) is distributed twice a year. All coupons received from the holdings of a portfolio of bonds are paid out as income, net of other fees and expenses.

5. Who are the Manager and Investment Manager for the Fund?

ABF Malaysia Bond Index Fund’s Manager is AmFunds Management Berhad, which is marketed under the AmInvest brand. AmInvest is a multiple award-winning funds management house based in Malaysia with decades of experience in managing funds and investments. AmInvest is the pioneer in exchange traded funds (ETFs) when it introduced Malaysia’s first bond ETF, ABF Malaysia Bond Index Fund in 2005 and Malaysia’s first equity ETF, FBM30etf (now known as FBM KLCI etf) in 2007.

Transaction Details:

1. How do I buy or sell the Fund?

Similar to trading shares, you need to have two accounts (to be obtained from stockbroking companies):
1) Central Depository System (CDS) account
2) Trading account (stockbroking companies to advise on procedures)

If you do not have these accounts, just follow 3 easy steps below to open the CDS account:

Step 1:
Go to any stockbroking companies in Malaysia. Please visit Bursa Malaysia for a list of the brokers.

Step 2:
Complete the account opening form and two (2) specimen signature cards.

Step 3:
If you are Malaysians, submit the documents together with two (2) certified true copies of your Malaysian National Registration Identity Card (NRIC). As for foreigners, you will need to pay the account opening fee and submit two (2) certified true copies of your passport.

You may then buy or sell the Fund through your broker/remisier or via online trading during normal trading hours.

2. What is the stock short name and stock code of the Fund?

Stock Short Name: ABFMY1
Stock Code: 0800EA

3. What is the minimum investment amount?

Based on a minimum board lot size of 100 units, the minimum investment for the Fund would be the Fund’s market price per unit multiplied by 100. For example, if the price per unit is RM1.10, the Fund’s minimum investment will be RM110.

4. What transaction fees do I need to pay when I buy or sell the Fund?

Like buying or selling equities, you need to pay brokerage commission, stamp duty and clearing charges.

5. How is the market price of the Fund determined?

The price of the Fund is market-driven, but in general, the Fund's NAV is trading close to the market value of the index's underlying bonds, plus any net income not distributed.

6. Where can I get the latest price information on the Fund?

To find out the latest price information, you may contact your remisier, or obtain it from your online trading website or Bursa Malaysia throughout the trading day. Alternatively, you may also refer to major newspapers on the following day for the closing prices.

Other Fund Information

1. Will the Fund’s portfolio change?

Yes, the portfolio in the Fund can change. The Fund Manager will rebalance the holdings in the portfolio periodically if necessary to improve its tracking to the Benchmark Index.

2. How long do I need to hold the Fund before selling it? Do the Fund’s units expire?

You should consider holding the Fund for a longer term view and enjoy the income distributions. The Fund invests in government bonds and therefore there are little short term profit opportunities. Alternatively, you can also trade in the Fund for capital gains if you anticipate an interest rate cut.

The Fund's units have no expiry or maturity. They exist as long as the Fund exists. In the event of the winding down of the Fund, its assets will be sold and the proceeds distributed proportionately back to unit holders.

3. How do I know if the Fund Manager is doing a good job?

The higher the correlation between the Fund and the index shows that the Fund Manager is doing a good job.

4. How different is the Fund compared to regular unit trusts?

	THE FUND	UNIT TRUSTS (Bond Funds)
Diversification
Price Transparency
Entry Fee	Brokerage fees apply*	Up to 2% of NAV per unit***
Management Fees	0.10% p.a. of the NAV	Up to 1% p.a. of the NAV***
Traded through Broker
Cash Settlement	T+2**	Upfront
* Please note brokerage fee of up to 0.30%, clearing fee of 0.03% and stamp duty are applicable when trading securities on Bursa Malaysia T+2 means second business day after trade date *Source: Lipper, Refinitiv and AmFunds Management Berhad, 28 February 2020

Trustee Information:

1. Who is the Trustee for the Fund?

The Fund’s Trustee is HSBC (Malaysia) Trustee Berhad. The appointed 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.

2. What is the role of a Trustee?

The Trustee's main functions are to act as a custodian of the assets of the Fund and to safeguard the interests of unitholders of the Fund. In performing these functions, the Trustee has to exercise all due care and vigilance and is required to act in accordance with the provisions of the Deed, Capital Markets and Services Act (CMSA) and the Securities Commission’s Guidelines on ETFs. 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, CMSA and the above Guidelines.

3. Where are the assets? How safe are they?

All assets owned by the Fund including shares, derivatives, rights and cash, are held in trust by HSBC (Malaysia) Trustee. In the event the Trustee cease to continue conducting business, the Fund Manager will find a new Trustee and all the assets of the Fund will be transferred to the new Trustee. If the Fund Manager winds down its business, the Trustee will find a new Fund Manager to manage the Fund's assets.

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Disclaimer:

This advertisement material is prepared for information purposes only and may not be published, circulated, reproduced or distributed in whole or part, whether directly or indirectly, to any person without the prior written consent of AmFunds Management Berhad [198601005272 (154432-A)] (“AmInvest”). This advertisement material should not be construed as an offer or solicitation for the purchase or sale of any units in ABF Malaysia Bond Index Fund (“the Fund”). AmInvest has relied upon the accuracy and completeness of relevant information available from public sources. AmInvest does not warrant the accuracy, adequacy, timeliness or completeness of the information obtained from the public sources for any particular purpose, and expressly disclaims liability for any error, inaccuracy or omission. AmInvest and its employees shall not be held liable to the investors for any damage, direct, indirect or consequential losses (including loss of profit), claims, actions, demands, liabilities suffered by the investors or proceedings and judgements brought or established against the investors, and costs, charges and expenses incurred by the investors or for any investment decision that the investors have made as a result of relying on the content or information in this advertisement material. Investors shall be solely responsible for using and relying on any contents in this advertisement. Investors are advised to read and understand the contents of the Prospectus for ABF Malaysia Bond Index Fund dated 6 August 2021, including any supplementary(ies) made thereof from time to time (“Prospectuses”), obtainable at www.abfmy1.com.my, before making an investment decision. The Prospectuses have been registered with the Securities Commission Malaysia, who takes no responsibility for its contents. The Securities Commission Malaysia’s approval or authorisation, or the registration of the Prospectuses does not amount to nor indicate that the Securities Commission Malaysia has recommended or endorsed the Fund. The Securities Commission Malaysia has not reviewed this advertisement material. Investors may wish to seek advice from a professional advisor before making an investment decision. The Fund’s units will only be issued upon receipt of the complete application form accompanying the Prospectuses. Past performance of the Fund is not an indication of its future performance. The Fund’s unit prices and income distribution payable, if any, may rise or fall. Where a unit split/distribution is declared, investors are advised that following the issue of additional units/distribution, the Net Asset Value (“NAV”) per unit will be reduced from pre-unit split NAV/cum-distribution NAV to post-unit split NAV/ex-distribution NAV. Please be advised that where a unit split is declared, the value of investor’s investment in Malaysian Ringgit will remain unchanged after the distribution of the additional units. Investments in the Fund are exposed to market risk, interest rate risk, income risk, credit and settlement risk, liquidity risk, use of futures and options contracts involving certain risks, use of repurchase agreements involving certain risks, asset class risk, non capital guaranteed risk, risk that units may be delisted from Bursa Securities, risk that units may trade at prices other than NAV, risk that trading units on Bursa Securities may be suspended, risk on reliance on participating dealers / market makers , counterparty and settlement risk, risk associated with securities lending, Executives’ Meeting of East Asia and Pacific Central Banks’ investment in the Fund risk and risk of withdrawal of approval by the Securities Commission. Investors are advised to consider these risks and other general risks elaborated, as well as the fees, charges and expenses involved. AmInvest’s Privacy Notice can be accessed via www.aminvest.com.

Markit iBoxx® ABF Malaysia Bond Index Fund

The Markit iBoxx® ABF Malaysia (the “Index”) referenced herein is the property of Markit Indices GmbH (“Index Sponsor”) and has been licensed for use in connection with ABF Malaysia Bond Index Fund. Each party acknowledges and agrees that ABF Malaysia Bond Index Fund is not sponsored, endorsed or promoted by the Index Sponsor. The Index Sponsor makes no representation whatsoever, whether express or implied, and hereby expressly disclaims all warranties (including, without limitation, those of merchantability or fitness for a particular purpose or use), with respect to the Index or any data included therein or relating thereto, and in particular disclaims any warranty either as to the quality, accuracy and/or completeness of the Index or any data included therein, the results obtained from the use of the Index and/or the composition of the Index at any particular time on any particular date or otherwise and/or the creditworthiness of any entity, or the likelihood of the occurrence of a credit event or similar event (however defined) with respect to an obligation, in the Index at any particular time on any particular date or otherwise. The Index Sponsor shall not be liable (whether in negligence or otherwise) to the parties or any other person for any error in the Index, and the Index Sponsor is under no obligation to advise the parties or any person of any error therein. The Index Sponsor makes no representation whatsoever, whether express or implied, as to the advisability of purchasing or selling ABF Malaysia Bond Index Fund, the ability of the Index to track relevant markets’ performances, or otherwise relating to the Index or any transaction or product with respect thereto, or of assuming any risks in connection therewith. The Index Sponsor has no obligation to take the needs of any party into consideration in determining, composing or calculating the Index. No party purchasing or selling ABF Malaysia Bond Index Fund, nor the Index Sponsor, shall have any liability to any party for any act or failure to act by the Index Sponsor in connection with the determination, adjustment, calculation or maintenance of the Index.