| Investment Objective |
The Fund seeks to provide capital preservation* for the members’ investment.
* Members are advised that their capital is neither guaranteed nor protected.
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| Fund Category | Core (Conservative) | |
| Investment Strategy |
To achieve its investment objective, the Fund will invest up to 100% of its NAV in fixed income
instruments issued by Malaysian and foreign companies or Malaysian or foreign government. The
Fund may also invest in equities listed in Malaysia and foreign markets and up to 50% of its NAV
in equities with high dividend yield. Remaining of its NAV will be invested in liquid assets.
The Fund may invest in foreign equities with high dividend yield listed in the Asia Pacific ex-Japan markets (including, but not limited to, Malaysia, Australia, China, Hong Kong, India, Indonesia, New Zealand, South Korea, the Philippines, Singapore, Taiwan and Thailand) including equities with high dividend yield of Asia Pacific ex-Japan companies that are listed on or traded in non-Asia ex-Japan markets. There will be no restriction on country allocation. The objective is to invest into equities that have strong cash flow and strong balance sheet to support a sustainable dividend income, in order to reduce the volatility of the Fund. The Fund may also opt to invest in the equities with high dividend yield either directly or via collective investment schemes of RHBAM or other collective investment schemes (including real estate investment trusts and exchange traded funds). For the fixed income portion, the Fund may invest in fixed income instruments provided that at the point of purchasing the instruments, issuers or financial institutions carry a minimum rating of ‘A3’ as rated by any reputable Domestic Rating Agencies^^ or a minimum rating of ‘BBB-’ as rated by any reputable Global Rating Agencies^^^, without restriction on the tenure of these fixed income instruments. ^^ “Domestic Rating Agencies” refer to local credit assessment institutions that are recognised by the Securities Commission Malaysia. ^^^ “Global Rating Agencies” refer to global credit assessment institutions that are recognised in line with relevant laws. The Fund will also invest in liquid assets including money market instruments, deposits with financial institutions and collective investment schemes investing in money market instruments and/or deposits with financial institutions. |
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| Asset Allocation |
Fixed income instruments | Up to 100% of the NAV. |
| Equities with high dividend yield | Up to 50% of the NAV. | |
| Liquid assets | Remaining of the NAV. | |
| Performance Benchmark |
Weighted average of FTSE Bursa Malaysia KLCI Index (30%) and RHB Bank Berhad’s 12 months fixed
deposit rate (70%).
The risk profile of the Fund is not the same as the risk profile of the performance benchmark.
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| Member Profile |
Suitable for members with a low risk profile.
Members aged 55 years and above will be allocated to this Fund under the default option. |
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| Risks Disclosure |
Equity Risk, Credit risk, Interest rate risk, Specific security risk, Liquidity risk, Income Distribution Risk, Collective Investment Scheme Risk, Currency Risk, Country Risk | |