FREQUENTLY ASKED QUESTIONS

ASSET MANAGEMENT

1. Who are the shareholders of your company?

2. If your organization are a part of a larger group, who are the ultimate shareholders?

3. Is your organization bank-backed? If yes state the name of the bank.

4. Does your organization plan to increase the number of equity personnel in the next two years? If yes, how many?

5. How many ethical and Shariah equity funds does your organization manage, and what is the distribution percentage of ethical equity fund and Shariah equity fund?

6. What procedures exist to monitor and ensure Shariah compliance of the investments are undertaken on behalf of the clients?

7. What Shariah resources (Shariah Board, Shariah Supervisors or Shariah compliance officers, for example) are employed to benefit the investment process?

8. Is your organization a member of the Malaysian Association of Asset Managers? If no, why not and when will you be a member?

9. Are your funds being tracked by Watson Wyatt and Mercer Zainal? If yes, are the funds tracked representative of all your funds managed?

10. Does your organization provide equity training for clients? If yes, please describe what constitutes the training and for how long.

11. Does your organization perform a performance review for the clients? If yes, how often?

12. Does your organization perform/provide seminars for clients? If yes, how often?

13. What kind of reporting does your organization provide to the clients? And how often? How soon after the close of a period are the reports issued?

14. Could you offer distribution of your reports electronically?

15. Please list out other services that your organization provides to its clients.

 

1. Who are the shareholders of your company?

Affin Fund Management Berhad ("AFMB") is a wholly owned subsidiary of Affin Investment Bank Berhad effective from 1 July 2006.
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2. If your organization are a part of a larger group, who are the ultimate shareholders?

As a wholly owned subsidiary of Affin Investment Bank Berhad, our parent company is part of the larger Lembaga Tabung Angkatan Tentera ("LTAT") Group of Companies, the Armed Forces Provident Fund. LTAT's interest in Affin Investment Bank Berhad is held through equity stakes in Affin Holdings Berhad ("AHB") and Boustead Holdings Berhad ("Boustead"). Both AHB and Boustead are public listed conglomerates.
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3. Is your organization bank-backed? If yes state the name of the bank.

Yes, AFMB is a bank-backed organization through our parent company, Affin Investment Bank Berhad.
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4. Does your organization plan to increase the number of equity personnel in the next two years? If yes, how many?

Yes, human capital development is an incremental and on-going process which is highly correlated with the FUM (Funds Under Management). Recently we have identified and offered a candidate for the establishment of our research unit. AFMB plans to increase the number of its equity personnel by at least another three (3), two for the research unit and one for fund management unit.
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5. How many ethical and Shariah equity funds does your organization manage, and what is the distribution percentage of ethical equity fund and Shariah equity fund?

We have four ethical mandates and two Shariah mandates and the distribution percentage are 30.0% ethical, 50.0% Shariah and 20.0% conventional equity funds.
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6. What procedures exist to monitor and ensure Shariah compliance of the investments are undertaken on behalf of the clients?

Our Recommended Stocks List ("RSL") will categorize stocks which are Shariah Approved as per Securities Commision Shariah Advisory Council and during the recommendation stage, the fund managers or analyst who propose the inclusion of any stocks must cross-check with the Securities Commision Shariah Approved Stocks List.

One of the functions of our compliance unit is to ensure that all fund managers follow clients' mandates and investment policies.
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7. What Shariah resources (Shariah Board, Shariah Supervisors or Shariah compliance officers, for example) are employed to benefit the investment process?

We have access to the Shariah Advisory Council ("SAC") by virtue of managing our unit trust funds, Affin Islamic Equity Fund and Dana Islamiah Affin. It is a regulatory requirement for all Shariah based unit trust funds to have a SAC. The SAC meeting is held every month.
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8. Is your organization a member of the Malaysian Association of Asset Managers? If no, why not and when will you be a member?

Yes, our organization is a member of the Malaysian Association of Asset Managers ("MAAM"). The CEO is the company's representative in the association. As a member we participate in several surveys conducted by the association and receive industry update in relation to its law and regulation and also opportunities.
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9. Are your funds being tracked by Watson Wyatt and Mercer Zainal? If yes, are the funds tracked representative of all your funds managed?

Yes, we have participated in the performance survey conducted by both Watson Wyatt and Mercer Zainal in more than three years. For Watson Wyatt, we participate in one mandate and for Mercer Investment Consulting Performance Survey, we participate in six types of mandates, and they represent all mandates under our management.
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10. Does your organization provide equity training for clients? If yes, please describe what constitutes the training and for how long.

We would be delighted to provide training and would be happy to discuss arranging specific sessions on areas of interest. Clients are welcome to come to our office for a full day to experience all aspects of our investment process.

AFMB is also able to provide training in the following areas:
1. Investing and trading in fixed income securities
2. Managing foreign exchange and interest rate risks
3. Research on equities and fixed income
4. Foreign exchange and money market operations

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11. Does your organization perform a performance review for the clients? If yes, how often?

Yes. As per client requests, (monthly, quarterly, semiannually and annually)
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12. Does your organization perform/provide seminars for clients? If yes, how often?

We share information on current research projects with our clients as well as research papers and presentations focused on market developments or industry. To date, we do not conduct any seminar for our clients; however, we have experience hosting and arranging periodic training programs such as Advanced Technical Analysis, Stocks Valuation and etc for our clients.
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13. What kind of reporting does your organization provide to the clients? And how often? How soon after the close of a period are the reports issued?

Generally all of our clients are furnished with detailed monthly (frequency; 12 annually) reports which includes:
1. Portfolio investment summary
2. Portfolio valuation report
3. Bonus and rights issue
4. Sales and purchase statements
5. Money market movements
6. Dividend received statement
7. Expense accounts
8. Cash statements
9. Income and expense statement
10. Profit and loss statement
11. Balance sheet
12. Performance summary

In addition to the above monthly reports, we also provide Annual Income Budget for two year income projection on once or twice a year.

We can provide written reports within seven business days after month end. However, if the account must first be reconciled, reporting may be delayed, as the availability is dependent on when the custodian can provide reconciliation report. Nonetheless, the above reports are also available upon request on ad-hoc basis.
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14. Could you offer distribution of your reports electronically?

Yes, through electronic mailing system. The Company is also planning to develop a complete user-friendly-access client reporting on extranet using username and password.
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15. Please list out other services that your organization provides to its clients.

AFMB's sole business is within the scope of investment management and our approach to investment management is ideally suited from small to large and less to more sophisticated investors. Our IDM was founded to provide institutional clients with consistent, superior performance relative to client benchmarks. Institutional asset management is, and will continue to be the core focus of our business.
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