PRODUCT HIGHLIGHTS SHEET

for

AHAM Select Balanced Fund

(Formerly known as Affin Hwang Select Balanced Fund)

Date of issuance: 17 March 2023

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 AHAM Asset Management Berhad (formerly known as 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 AHAM Select Balanced 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 of 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 AHAM 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

AHAM SELECT BALANCED FUND
BRIEF INFORMATION ON THE PRODUCT

1. What is this product about?

AHAM Select Balanced Fund is an open-ended balanced fund, issued and managed in-house by the Manager.

The Fund’s investment objective is to provide investors an affordable access into a diversified investment portfolio containing
a ’balanced’ mixture of equities and fixed income securities to achieve a balance of growth and income over medium to
long-term.

PRODUCT SUITABILITY

2. Who is this product suitable for?

The Fund is designed for retail investors who prefer more stable investment returns, are relatively conservative with a bias
towards receiving regular income and want a meaningful medium to long-term capital growth.

KEY PRODUCT FEATURES

3. What am I investing in?

Launch date 28 July 2003

Tenure This Fund is an open-ended fund where it does not have a fixed maturity date and may
only be terminated in accordance with the terms of the Prospectus and the provisions of
the Deed.
Benchmark Weighted average of the FTSE Bursa Malaysian Top 100 Index (“FBM 100”) performance (for
equity investment) and current Maybank 12-month fixed deposit rate, in the proportion of
50:50.
The risk profile of this Fund is different from the risk profile of the benchmark
Investment strategy The Fund will focus on achieving its objective by investing in a balanced portfolio consisting
of equities, debentures, money market instruments and/or deposits.

We will combine a top-down and bottom-up investment approach to identify investment

opportunities. When selecting its fixed income instruments such as debentures, money
market instruments or deposits, macroeconomic trends and market analysis are the important
considerations in deriving the top-down perspective on interest rate outlook, credit market and
currency movement. For its bottom-up approach, we would conduct analysis on the issuers
to assess its ability to service its debt obligations. The selection process would also include
analysis on the respective issuer’s ability to meet their financial obligations, cash-flow
management, collateral type, value, claims priority, as well as ability to offer timely payment
of interest and principal.

When investing into equities, we will focus on companies that are able to provide growth
potential over the medium to long-term investment horizon. As such, we would adopt a top-
down and bottom-up strategy investment approach to identify investment opportunities in the
prevailing market. Fundamental analysis will also be carried out to determine the
attractiveness of investment ideas. Key factors which are useful in identification of such
companies would include sales and profit growth, financial strength and gearing levels,
expected future earnings growth, share price valuation as well as management quality.

To achieve its objective, the Fund will also have the flexibility to hold exposure in warrants,
as well as collective investment schemes that have similar investment objectives to the Fund.

Page | 1
 Foreign investments
The Fund may invest up to 30% of its NAV in investments listed or issued in foreign markets.
The decision to invest into foreign markets will be opportunistically driven where we would
seek out investments that could provide a potential to enhance the returns of the Fund. The
Fund will invest only into countries which are eligible markets.

Derivatives
Derivatives trades may be carried out for hedging purposes through financial instruments
including, but not limited to, forward contracts, futures contracts and swaps. Futures and
forward contracts are generally contracts between two parties to trade an asset at an agreed
price on a pre-determined future date whereas swaps is an agreement to swap or exchange
two financial instruments between two parties.

The intention of hedging is to preserve the value of the asset from any adverse price
movements. For example, to hedge against foreign currency exchange risk, the Fund may
enter into a currency forward contract to offset any adverse foreign currency movements by
determining an agreed rate for an agreed tenure with its counterparty. While the hedging
transactions will assist with mitigating the potential foreign exchange losses by the Fund, any
potential foreign exchange gains from the hedging strategy will be capped as well.

The Fund adopts commitment approach to measure the Fund’s global exposure to
derivatives. The commitment approach is a methodology that aggregates the underlying
market values or notional values of derivatives after taking into account the possible effects
of netting and/or hedging arrangements. The Fund’s global exposure from the derivatives
position must not exceed 100% of NAV of the Fund at all times.

Temporary Defensive Position

We hold the option to take temporary defensive measures that may be inconsistent with the
Fund's principal strategy and asset allocation to protect the Fund against adverse market
conditions. To manage the risk of the Fund, we may shift the Fund's focus into lower risk
investments such as money market instruments and/or deposits.
Asset allocation
Asset Class % of the Fund’s NAV
Equities 40% to 60%
Debentures, money market instruments and/or deposits 40% to 60%

Distribution policy Subject to the availability of income, the Fund will distribute income on a semi-annual basis.
However, the amount of income available for distribution may fluctuate from year to year.
Minimum initial
MYR 1,000
investment*
Minimum additional
MYR 100
investment*
Minimum
Not applicable
repurchase amount*
Minimum holding of
500 Units
units*

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

4. Who am I investing with?

Relevant parties’ information:

The Manager AHAM Asset Management Berhad
The Trustee HSBC (Malaysia) Trustee Berhad

* 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.
Page | 2
 5. What are the possible outcomes of my investment?

This is a balanced fund that invests in a diversified portfolio of equities and fixed income securities, in domestic and foreign
markets.

The performance of the Fund would be dependent on the fixed income securities and equity market that are investable by
the Fund. The Fund’s performance is reliant on the Manager’s expertise in managing the Fund to meet its objective.

However, unlike fixed deposits which generally provide a guarantee on capital invested and carry specific rate of return, the
Fund’s investments into fixed income securities does not provide a guarantee on capital contributed nor does it guarantee
a fixed rate of return.

The Fund’s investment into equities would, to a great extent, be linked to the price movements of the domestic and/or foreign
equity markets. If the equities that are investable by the Fund performs well, the Fund’s performance may reflect the same.
However, should the equities that are investable by the Fund perform poorly, the Fund’s performance may also be impacted
negatively.

The Fund endeavours to distribution income, if any, on a semi-annual basis.

Please note that the capital and returns of the Fund are not guaranteed.

KEY RISKS

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

General risks
• Market risk - Market risk arises because of factors that affect the entire market place. 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 fluctuations in the economic, political and social environment that
will affect the market price of the investments either in a positive or negative way.
• Fund management risk - This risk refers to the day-to-day management of the Fund by the Manager which will impact
the performance of the Fund. For example, investment decisions undertaken by the Manager as a result of an incorrect
view of the market or any non-compliance with internal policies, investment mandate, the Deed, relevant law or
guidelines due to factors such as human error, fraud, dishonesty or weaknesses in operational process and systems,
may adversely affect the performance of the Fund.
• 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 fund managers are important and the risk on the lack of experience and
expertise of the fund managers has been highlighted above. On that basis, there is never a guarantee that investing in
the Fund will produce the desired investment returns or 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 though the value of the investment in monetary
terms has increased.
• Liquidity risk - Liquidity 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 below its fair value which would adversely affect the NAV of the
Fund and subsequently the value of Unit Holders’ investments in the Fund.
• Operational risk - This risk refers to the possibility of a breakdown in the Manager’s internal controls and policies. The
breakdown may be a result of human error, system failure or may be fraud where employees of the Manager collude
with one another. This risk may cause monetary loss and/or inconvenience to you. The Manager will review its internal
policies and system capability to mitigate instances of this risk. Additionally, the Manager maintains a strict segregation
of duties to mitigate instances of fraudulent practices amongst employees of the Manager.
• Loan / financing risk - This risk occurs when you take a loan or financing to finance your investment. The inherent risk
of investing with borrowed/financed money includes you being unable to service the loan/financing 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 NAV per Unit as compared to
the NAV per Unit at the point of purchase towards settling the loan/financing.

Page | 3
• Suspension of repurchase request risk - Having considered the best interests of Unit Holders, the repurchase
requests by the Unit Holders may be subject to suspension due to exceptional circumstances, where the market value
or fair value of a material portion of the Fund’s assets cannot be determined. In such case, Unit Holders will not be able
to redeem their Units and will be compelled to remain invested in the Fund for a longer period of time. Hence, their
investments will continue to be subject to the risks inherent to the Fund.

Specific risks
• Stock specific risk - Prices of a particular stock may fluctuate in response to the circumstances affecting individual
companies such as adverse financial performance, news of a possible merger or loss of key personnel of a company.
Any adverse price movements of such stock will adversely affect the Fund’s NAV.
• Credit and default risk - Credit risk relates to the creditworthiness of the issuers of the debentures or money market
instruments and the Financial Institutions where the deposits are placed (hereinafter referred to as “investment”) and
their expected ability to make timely payment of interest and/or principal. Any adverse situations faced by the issuer
and/or Financial Institution 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 and/or a Financial Institution 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. This could adversely affect the value of the Fund.
• Interest rate risk - This risk refers to the impact of interest rate changes on the valuation of debentures or money market
instruments (hereinafter referred to as “investment”). Generally, movement in interest rates affects the prices of
investment inversely. For example, when interest rates rise, prices of investment will fall. The fluctuations of the prices
of investment will also have an impact on the NAV of the Fund. This risk can largely be eliminated by holding investment
until their maturity. We also manage interest rate risk by considering each investment’s sensitivity to interest rate
changes. When interest rates are expected to increase, the Fund would then likely seek to switch to investment that are
less sensitive to interest rate changes. For investments in deposits, the fluctuations in the interest rates will not affect the
placement of deposits but will result in the opportunity loss by the Fund if the placement of deposits is made at lower
interest rate.
• Warrants investment risk - The value of the warrants will depend on the pricing of the underlying security whereby the
growth and performance prospect of the underlying security would consequentially affect the value of the warrants. In
addition, the value of the warrants may decrease exponentially as the warrants approach its maturity date and the
potential gains from a favourable price movement of the underlying may be offset by aggressive time decay. We may
consider unwinding these warrants if there are material adverse changes to its value with the aim to mitigate the risk.
• Country risk - Investments of the Fund in any countries may be affected by changes in the economic and political
climate, restriction on currency repatriation or other developments in the law or regulations of the countries in which the
Fund invests. For example, the deteriorating economic condition of such countries may adversely affect the value of the
investments undertaken by the Fund in those affected countries. This in turn may cause the NAV of the Fund or prices
of Units to fall.
• Currency risk - As the investments of the Fund may be denominated in currencies other than the base currency of the
Fund, any fluctuation in the exchange rate between the base currency of the Fund and the currencies in which the
investments are denominated may have an impact on the value of these investments. You should note that any gains or
losses arising from the fluctuation in the exchange rate may further increase or decrease the returns of the investment.
• Regulatory risk - The investments of the Fund would be exposed to changes in the laws and regulations in the countries
the Fund is invested in. These regulatory changes pose a risk to the Fund as it may materially impact the investments of
the Fund. In an effort to manage and mitigate such risk, the Manager seeks to continuously keep abreast of regulatory
developments (for example, by closely monitoring announcements on regulators’ website and mainstream media) in that
country. The Manager may dispose its investments in that particular country should the regulatory changes adversely
impact the Unit Holders’ interest or diminish returns to the Fund.

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

Page | 4
 PERFORMANCE

Average Total Return

1 Year 3 Year 5 Year Since Commencement
(1/4/21 – 31/3/22) (1/4/19 – 31/3/22) (1/4/17 – 31/3/22) (18/8/03 – 31/3/22)
Fund -4.61% 7.70% 5.88% 8.63%
Benchmark 0.08% 0.87% 0.69% 4.07%
Source: Bloomberg/Morningstar

Annual Total Return

Financial Year
2022 2021 2020 2019 2018 2017 2016 2015 2014 2013
End
Fund -4.61% 34.52% -2.18% -1.15% 7.75% 10.13% 0.34% 0.36% 9.27% 13.07%
Benchmark 0.08% 12.32% -8.70% -4.07% 5.12% 3.31% 2.07% -3.29% 4.11% 7.80%
Source: Bloomberg/Morningstar

For the period 1 April 2021 to 31 March 2022, the Fund registered a -4.61% return compared to the benchmark return of
0.08%. Since commencement, the Fund has registered a return of 367.52% compared to the benchmark return of 110.15%.

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
Financial Year End 2022 2021 2020
Gross distribution per Unit (sen) 2.70 3.00 3.00
Net distribution per Unit (sen) 2.70 3.00 3.00
Distribution will be made in the form of cash as well as Units in lieu of cash, if any.

Portfolio Turnover Ratio (PTR)

Financial Year End 2022 2021 2020
PTR (times) 0.72 1.19 1.17
The Fund recorded a lower PTR as the Manager had decreased its trading activities during 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 Up to 5.50% of the NAV per Unit.
Investors may negotiate for a lower charge.
The Sales Charge for investors purchasing Units through the EMIS shall be limited to a
maximum charge of 3% of the NAV per Unit or as determined by the EPF.
Repurchase charge There will be no Repurchase Charge levied on any repurchase of Units of this Fund.
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.
Transfer fee There will be no transfer fee imposed on any transfer transactions.

Page | 5
What are the key ongoing fees charged to the Fund?
Management fee Up to 1.50% per annum of the NAV of the Fund (before deducting the management fee and
trustee fee).
Trustee fee Up to 0.07% per annum of the NAV of the Fund (excluding foreign custodian fees and charges)
before deducting the management fee and trustee fee.

Note: Please refer to the Prospectus for further explanation and illustration on 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.aham.com.my, 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. to 3.30 p.m. Payments will be made to you within seven (7)
Business 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 for onward crediting to your EPF account. If
you are above the age of fifty five (55) 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 : AHAM 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

Page | 6
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 Consumer & Investor Office:
(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 : Consumer & Investor Office
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

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 and/or one or more of the foreign markets in which the Fund is
invested in* are open for business/trading.
Note: *in aggregate constitutes 50% or more of the Fund’s NAV.
Deed Refers to the deed dated 1 July 2003, first supplemental deed dated 29 December 2005, second
supplemental deed dated 18 June 2007, third supplemental deed dated 15 October 2008, fourth
supplemental deed dated 18 January 2012, fifth supplemental deed dated 27 June 2014, sixth
supplemental deed dated 28 April 2017, seventh supplemental deed dated 5 October 2018 and eighth
supplemental deed dated 28 December 2022 entered into between the Manager and the Trustee.
deposit(s) Has the same meaning as the definition of "deposit" in the Financial Services Act 2013. For the
avoidance of doubt, it shall exclude structured deposit.
EPF Means Employees Provident Fund.
EMIS Means EPF Members’ Investment Scheme.
Fund Refers to the AHAM Select Balanced Fund (formerly known as Affin Hwang Select Balanced Fund).
the Manager / AHAM / we / us Refers to AHAM Asset Management Berhad (formerly known as Affin Hwang Asset Management
/ our Berhad).
medium to long-term Means a period above three (3) years.
MYR Ringgit Malaysia
Net Asset Value or NAV Means the value of the Fund’s assets less the value of the Fund’s liabilities at a particular valuation
point.
NAV per Unit Means the NAV of the Fund at a particular valuation point divided by the number of Units in Circulation
at the same valuation point.
Prospectus Means the prospectus of the Fund and includes any supplemental or replacement prospectus, as the
case may be.
Repurchase Charge Means a charge imposed pursuant to a repurchase request.
Sales Charge Means a charge imposed pursuant to a purchase request.
SC Securities Commission Malaysia.
Trustee Refers to HSBC (Malaysia) Trustee Berhad.
Unit(s) Means a measurement of the right or interest of a Unit Holder in the Fund.
Units in Circulation Means Units created and fully paid and which have not been cancelled.
It is also the total number of Units issued at a particular valuation point.
Unit Holder(s), investor(s), Means the person / corporation registered as the holder of a Unit or Units including persons jointly
you registered.

Page | 7