KAF Investment Funds Berhad ("KAF IF") is a holder of a Capital Markets Services License issued under the Capital Markets and Services Act 2007. As of 31st November 2022, KAF IF has 16 collective investment schemes and 36 private mandates with a total value of assets under management in excess of RM5.10 billion in its suite of offerings which covers a range of products types with different risk profiles. KAF IF offers both conventional and Shariah collective investment schemes. In addition to KAF IF's own sales team, KAF IF funds are distributed by Institutional Unit Trust Adviser (IUTAs) and KAF IFs registered agents. The agency sales force is an alternative distribution channel which enables KAF IF to serve the investing public who seek personalized service.
This risk refers to the individual risk of the respective companies issuing securities. This risk could be a result of changes to the business performance of the company, consumer tastes and demand, lawsuits, competitive operating environment and management practices. Developments in a particular company which the Fund has invested in would result in fluctuations in the share price of that company and thus the value of the Fund's investments. This risk is mitigated by diversification in a portfolio comprised of stocks of many companies.
The value of 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 their maturity date and potential gains from a favourable price movement of the underlying may be offset by aggressive time decay. The Manager may consider unwinding these warrants if there are material adverse changes to their value to mitigate the risk.
This risk refers to the risks of investing in foreign markets. Emerging markets may have relatively underdeveloped capital markets, less stringent regulatory and disclosure standards, concentration in only a few industries, greater adverse political, social and economic risks and general lack of liquidity of securities. The risk of expropriation, nationalisation, exchange control restrictions, confiscatory taxation and limitations on the use or removal of funds also exist in emerging markets. This risk may be mitigated by conducting thorough research on the respective markets, their regulatory framework, economics, companies, politics and social conditions as well as minimising or omitting investments in markets that are economically or politically unstable or lack a regulatory financial framework and adequate investor protection legislation.
As the investments of the Fund may be denominated in foreign currencies, the Fund is exposed to currencies fluctuation risks. Such investments are impacted by any fluctuation in the exchange rate of the foreign currencies as to RM. If the foreign currencies in which the investments are denominated depreciate against the RM, the NAV may be adversely affected and vice versa. Investors should also note that any gains or losses arising from the fluctuation of the exchange rate may further increase or decrease the returns of their investments.
Investors are advised to obtain, read, and understand the contents of the respective disclosure documents before investing. These are available at our office and our authorized distributor and can be viewed on our website at www.kaf.com.my. Among others, investors should consider the fees and charges involved. The prices of units and distribution payable (if any) may go down and up. The past performance of the funds is not indicative of its future performance. Investments in the funds carry with them elements of risk. Investors are advised to make their assessments of the risks involved and are recommended to seek professional advice where necessary. This digital content is for informational purposes only and has not been reviewed by the Securities Commission Malaysia.