1 Prospectus – Executive Summary As of 24 October 2014 This summary prospectus summarizes information in relation to the policies, returns, risks and conditions of the mutual fund. Investors must study information in this summary prospectus and the fund prospectus thoroughly before making an investment decision. For inquiries, please contact the selling agent for clarification before subscribing units. Investors should invest only when the fund suits their investment objectives. Investors accept potential risks in relation to the investment. Krungsri Europe Equity Hedged Fund (KF-HEUROPE) Type of Fund Name of the Management Company Trustee Dividend Policy Frequency of Transaction Total Costs Feeder fund invests in Foreign Equity Fund Krungsri Asset Management Company Limited Standard Chartered Bank (Thai) Public Company Limited No dividend Every working day during IPO and after IPO as specified in the fund calendar for fund trading date. Not exceeding 4.35% per year of NAV Is this fund insured or capital-protected? The office of the SEC The office of the SEC No Insurer Inception Date Nil 6 November 2014 Fund’s tenor Not specified Fund approved by The Management Company controlled by Diagram of Risk of the Fund Low Risk High Risk Domestic Money Market Funds Money Market Government Funds with Partial Bond Funds Investment in Foreign Countries Remark: The level of risk in this fund is 6 which is high. Fixed Income Fund Investment Policy Mixed Funds Asset Allocation Krungsri Europe Equity Hedged Fund: allocates at least 80% of NAV in each accounting year in a foreign fund titled Allianz Europe Equity Growth Fund (Master Fund). Allianz Europe Equity Growth Fund (Master Fund): focuses on investment in shares listed in European Union countries, Norway or Iceland including England, France, Germany, Sweden, Denmark, Switzerland, Spain, Netherland, Ireland and Belgium. Investors may view more information on : www.allianzgi.sg Fund Management Style Krungsri Europe Equity Hedged Fund: aims to push return to move within the same direction as the Master Fund (Passive Management) Allianz Europe Equity Growth Fund (Master Fund): aims to generate higher return than the benchmark (Active Management) Factors affecting Returns (1) Changes in the price of the shares in which the Master Fund invests. (2) Changes in NAV of the Master Fund. (3) Changes in foreign currency exchange. Equity Funds KF-HEUROPE Sector Funds Alternative Investment Funds i.e. gold, crude oil, commodity Which Type of Investors is KF-HEUROPE for? Investors who can afford to put their savings to investment with shortterm volatility and high risk in exchange of good returns in medium term to long term at the rate similar to investment in equity funds in companies listed in European stock exchange. Important Risk Factors Credit Risk and Operating Risk: The fund may contain these risks which can also be found in the companies listed in European stock exchange in which the Master Fund invests or is holding. Foreign Exchange Risk: The fund may contain foreign exchange risk. The fund may enter into a currency swap to hedge against foreign exchange risk within discretion of the Management Company. Other Risks in relation to Foreign Investment: The fund may contain risks related to foreign investment (Country and Political Risk) and risks from restriction of repatriation of off-shore generated cash flows (Repatriation Risk). - Benchmark S&P Europe LargeMidCap Growth Net Total Return in Euro currency adjusted with the exchange rate for conversion to Thai Bath as at the date on which return is calculated. - Important Warning The Master Fund will enter into a forward contract to hedge against the exchange rate risk in relation to the securities or the assets denominated in foreign currency which are currently held by the Master Fund in Baht equivalent at a particular time for the value of at least 90% of the foreign investment value, in which case, it may incur costs for risk hedging transaction and the increased costs may reduce overall return. The fund and/or master fund may invest in or make available a forward contract to enhance efficiency in investment management. This means the fund may contain higher risks than other funds and therefore the fund is suitable for investors who prefer higher return with higher risk tolerance than general investors. Investors should make investment only when they understand the risks of the contract by considering their investment experience, investment objectives and financial status. 2 Fees Fees charged to the Fund (% per annum of NAV) Management Not exceeding 2.00 (Actual charged 0.75) Trustee Not exceeding 0.10 (Actual charged 0.03) Registrar Not exceeding 0.15 (Actual charged 0.15) Fund Operation Not exceeding 1.00 (Not charge) Overseas Custody As actual & Not exceeding 0.10 Other expenses As actual Advertisement, Public Relation and Sales Promotion Expenses - During the IPO Not exceeding 1.00 1/ - After the IPO Not exceeding 1.00 Remark: 1/ Percentage of fund registered amount. Total fees Not exceeding 4.35 Fees Charged to Unitholders (% of transaction amount) Front-end Not exceeding 2.00 (Actual charge 1.50) Back-end Not exceeding 2.00 (Not charge) Switching fees 2/ - Switch-in Not exceeding 2.00 (Actual charge 1.50) - Switch-out Not exceeding 2.00 Remark: 2/ Not charge for switching transactions between Krungsri Europe Equity Fund and Krungsri Europe Equity Hedged Fund only. *Fee affects return on investment. Investors should consider the fee structure before making an investment* For More Information Krungsri Asset Management Company Limited 898 Ploenchit Road, 1st-2nd Zone A, 12th and 18th Zone B Floor Ploenchit Tower Lumpini, Pathumwan, Bangkok 10330 Tel: 0-2657-5757 Fax: 0-2657-5777 Website : www.krungsriasset.com Email : [email protected] Investors can make inquiries and receive the fund prospectus and obligation documents from the Management Company or the appointed selling agents. - - - - Important Warning (Continued) The Master Fund may use derivative instruments for the purpose of hedging (include FX hedging) and enhancing the efficient portfolio management, the underlying assets of which are, for example, financial index, interest rate, or currency exchange rate, etc. Hence, the Master Fund has more risks than those of other mutual funds. Since the fund ’s policy is to invest in investment units of the Master Fund concentrating on investing in shares listed in Europe, the fund is exposed to country risk, e.g. political, economic, social, market situation, liquidity, financial measure risks in unusual situations. The fund may also be subject to any restrictions in the countries where the fund trades the investment units of the Master Fund which affects the net asset value of KF-HEUROPE or may cause the fund not to be able to remit funds back to Thailand in which case investors will be unable to receive the return within the specified period. The Management Company will normally trade the investment units of the Master Fund in Singapore and invest in EURO currency as the main currency while the Master Fund invest in securities in various currencies i.e. EURO, Pound Sterling, Danish Krone, Swedish Krone, Swiss Franc, etc. The Management Company may change the trading venue to any other countries, e.g. Hong Kong and/or change the main currency into Singapore Dollar, Hong Kong Dollar, or United States Dollar at a later time. In this regard, this transaction shall be deemed to have been approved by unit holders. The fund fixes the ratio of investment and has lower distribution of asset allocation than other funds. Investment Units Subscription / Redemption Details Subscription : - Subscription Period During IPO: 29 October – 4 November 2014 by 15.30 hrs of the last day After IPO: Start from 7 November 2014, Every dealing date of the fund by 15.30 hrs - Minimum Value for Initial Subscription : 2,000 Baht - Minimum Value for Subsequent Subscription : 2,000 Baht Redemption : - Redemption Period: Start from 7 November 2014 Every dealing date of the fund by 13.00 hrs - Minimum Redemption 200 units or 2,000 Baht - Minimum Balance 200 units - Proceeds Payment Period 4 working day after the execution / (T+4) Investors can view daily NAV at the Management Company’s website 3 Other Information 1. Graph showing retrospective returns in Thai baht of Allianz Europe Equity Growth Fund, the foreign mutual fund in which KF-HEUROPE invests. Notes: (1) Source: Bloomberg – retrospective data as from 31 August 2011 to 29 August 2014. (2) A mutual fund’s historical return does not guarantee the future return. 2. Factors which may affect investment in equity instrument of small-cap and mid-cap companies worldwide. Positive factors 2.1 Expected improving corporate earnings from global economic resilient; although most companies in which the fund invests are listed in Europe, they meaningfully diversify their revenue sources geographically to emerging markets. 2.2 Growing probability of ECB’s monetary policy to become more accommodative, specifically a similar version of Fed QE, with positive signal from ECB President (Mr. Mario Draghi ). 2.3 Master Fund's stock selection skill and criteria that focus on companies possessing good business model with sustainable growth in long term. Negative factors 2.1 The political risk that could become more intense between Ukraine and Russia. 2.2 Internal country risk in Spain regarding Catalanonia state ‘s calling for referendum on its autonomy and independence. 2.3 The risk of ECB’s cancellation of its dovish financial policy which may change the market anticipation if the economic readings turn out to be better that what the ECB expected. Notes: Statements regarding the factors affecting investment mentioned above are the subjective opinion expressed by the Management Company’s investment team, which does not imply the accuracy or completeness of any such information. They do not intend to invite or influence direct investment in this Fund in particular or in general. Investors should use such information together with other opinions, inclusive of their own judgments, in making decision in investment that is appropriate to investors’ characteristics and objectives. - Investment in Mutual Fund is not a form of saving and not protected by Deposit Protection Agency. Therefore, investment in mutual fund may contain risks where investors receive return below initial investment. - In unusual circumstances, investors may not be able to redeem units or redemption settlement may be delayed beyond the period specified in the prospectus. - Performance of the fund does not depend on the financial status or the performance of the Management Company or the appointed selling agents. This draft prospectus of the fund does not represent that The office of the SEC has certified the accuracy of the information contained in the prospectus or guaranteed the price or return on investment for such fund. The Management Company has reviewed the information in this summary prospectus as at 24 Octpber 2014 with care as the party responsible for the management of the fund and certifies that the above information is correct, true and not misleading.
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