INVESTMENT POLICIES & OPERATIONS GUIDELINES

BHLB Trustee Bhd's Committee Members

DATO' (DR) STEPHEN YEAP LEONG HUAT is the Executive Chairman of Heng Lee & Company Sdn Bhd for over 20 years. He sits on the board of most of the companies in the Heng Lee Group, a Penang based group with diversified interests in property management, development, construction, investment holding, sports complex operations, credit financing and warehousing. He is also serves on the board of public listed companies, namely, Southern Bank Berhad, BHL venture Berhad and Island & Peninsular Berhad.

MR YEAP LAM YANG is the Resident Director of Southern Bank Berhad, Singapore Branch. He also serves on the Board of Southern Bank Berhad and BHL Venture Berhad. He gradutated with a Bachelors Degree in Science, majored in Economics with Homours from London School of Economics, United Kingdom in 1978. He joined Ban Hin Lee Bank Berhad ( now Southern Bank Berhad) at its Singapore Branch in 1980. He also sits on the board of several private limited companies having businesses in property development and investments.

MR SAW LEONG AUN is the Advisor and Director of BHLB Trustee Berhad and he is also the Chief Executive Officer and Director of Rockwills Corporation Sdn Bhd. He holds an Honor Degree in Social Science from the University of Malaya. He was the Deputy General Manager of BHLB Pacific Trust Management Bhd and had played a key role in building the Company into the second largest privately owned unit trust company in Malaysia. He also served in Prudential Assurance Bhd and was responsible for all aspects of marketing, product development and agency force. In 1998, he was nominated a finalist in the " Success unlimited Award" sponsored by Chivas Regal for young managers.

He is also the author of the books named "All you need to know about Wills" and "Guide to planning your Will effectively".

MR JOSHUA LIM is the Chief Executive Officer of BHLB Trustee Berhad and holds a Masters in Business Administration from Universiti Putra Malaysia and the Bachelor of Law from University of London. He is an experienced adviser in the Trust Industry and one of the leading promoter offs estate planning tools. He has been involved in the Trust and Legal Services Industry since 1992. He has also attended the Malaysian Unit Trust Administration Course organized by the Federation of Malaysian Unit Trust Managers and the Securities Institute of Education Australia. He is responsible for the Marketing and Operations and overseas the Legal, Trust Administration, Securities and Investment Divisions of the Trustee.

Investment Objectives And Policies 

The objectives of our investment strategy will be to design an appropriate investment portfolio that will ensure highest growth with minimum risk. The criteria by which the portfolio is structured will depend primarily on the individual risk profile and needs of our clients.

Discretionary portfolio management services are available to clients of BTB or clients may choose to have their portfolios managed by other fund managers. Private accounts under trust are tailored according to our client's specific needs and circumstance. An investment strategy will be established and a balanced portfolio designed which will invest in fixed income or equity as the case may be.

Periodic reports on investment results and the performance of the funds will be made available.

As trustees we will assess the need for liquidity and depending on the fund size, the flexibility to effect decisions to manage investment risk through diversification of portfolio. We can in so doing, assist in enhancing the value of the trust fund whilst at the same time ensuring that all circumstances of needs are taken into account.

The Characteristic Of Our Investment Policy

In order to provide maximum returns for our clients, the following will form the underlying principles which we follow:

a)     Timeliness in making investment decisions;

b)     Consistently monitoring of the market conditions and trends;

c)     Continuously identifying new investment opportunities and capitalizing on buying opportunities that will present themselves from time to time.

Investment Operations And Guidelines

The composition of all trust funds will be reviewed regularly to determine that the allocation structure meets:

a)   the objective of the trust

b)   the appropriate portfolio mix based on prevailing market returns and risk profile of the selected investments.

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Taxation Of The Trust Funds

Trust funds and beneficiaries of the trust funds established are taxable in accordance with the Malaysia Income Tax Act 1967, and in particular S.61 thereof which deals specifically with the taxation of trust/trust bodies established in Malaysia.

The income of the fund in respect of the dividends from Malaysian companies and interest income from deposits are liable to Malaysian income tax at the rate of 28%.

Profit on the disposal of investments by the fund will not be subject to income tax. Similarly, interest income earned from bonds issued by the Government, or bonds other that convertible loan stock issued by public companies listed on the KLSE, or by a company rated by Rating Agency Malaysia Bhd or Bon Simpanan Malaysia issued by Bank Negara Malaysia are exempt from income tax.

Tax Position Of The Beneficiaries

Beneficiaries will be taxed on an amount equivalent to their share of the total taxable income of the fund, to the extent that this is distributed to them. The income distribution from the fund will carry with it a tax credit in respect of the tax paid by the fund. Beneficiaries will be entitled to utilize the tax credit as a set-off against the tax chargeable on the income distribution received by them. No additional withholding tax will be imposed on the income distribution of the fund.

The tax position is based on the Malaysian tax laws and provisions as they stand at present. Settlors are advised to seek professional advice on their respective tax position.

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