FBTRS 015/2020_v2

(Updated 01.07.2021)

RHB ISLAMIC BANK BERHAD 200501003283 (680329-V) Incorporated in Malaysia

PRODUCT DISCLOSURE SHEET WAKALAH MONEY MARKET

(Please read and understand this Product Disclosure Sheet together with INVESTMENT ACCOUNT-i (WMMIA-i)
the general terms and conditions governing the Wakalah Money Market
Investment Account-i (WMMIA-i) before you decide to take up this product.
Seek assistance from RHB Islamic Bank Berhad if you need further Date: _____________________________________
clarification on any part of this document or the terms used.) [to be filled by Sales Personnel]

IMPORTANT/DISCLAIMER
THIS IS AN INVESTMENT ACCOUNT PRODUCT THAT IS TIED TO THE PERFORMANCE OF
THE UNDERLYING ASSETS, AND IS NOT A DEPOSIT PRODUCT.
BRIEF INFORMATION ON THE PRODUCT
1. What is this product about?

Name of Product Wakalah Money Market Investment Account-i (WMMIA-i)

Applicable Wakalah bi Al-istithmar is a contract where a party, as principal (muwakkil) authorizes another party as his agent
Shariah (wakil) to perform a particular task on matters that may be delegated, with or without imposition of a fee. A
Contract wakalah contract may be entered into for the purpose of investment (Wakalah bi Al-istithmar).
Type of “Unrestricted Investment Account” or “UA” refers to a type of investment account where the IAH provides
Investment the RHBIB with the mandate to make the ultimate investment decision without specifying any particular
Account restrictions or conditions

“Wakalah Money Market Investment Account-i" or “WMMIA-i” is a type of unrestricted investment account
based on the Wakalah contract where the Investment Account Holder (IAH) as principal (muwakkil) authorizes
RHB Islamic Bank (Bank) as his agent (wakil) to perform a particular task on matters that may be delegated for
the purpose of investment (Wakalah bil Al-istithmar)
Underlying RHBIB to invest in the following underlying asset:
Asset / Asset No Type of Underlying Assets Investment Limit (%)
Proportion 1. <<Underlying Asset 1>> xx
2. <<Underlying Asset 2>> xx
Total 100
RHBIB may, in line with the investment mandate and investment objective agreed between RHBIB and IAH
adjust asset composition up to 90% of total fund size.
Parties involved The parties involved are the IAH as the investor and the Bank acting as the agent to undertake investment
in the activities on behalf of the IAH. The Bank will be responsible to manage the capital provided by the IAH. The IAH
Investment will not be involved in the investment activities.
Activities and
Their Roles and
Responsibilities
PRODUCT SUITABILITY
2. Who is this product suitable for?

The product is  Whose risk appetite matched with investment objectives.

suitable for  Who require investment that comply with Shariah requirements
investors  Who are willing to accept potential risk of losing the capital invested in order to achieve potential higher
profit than normal term deposit rate
Target Market Corporate

Risk on Investment principal is not guaranteed

Investment
Principal
KEY PRODUCT FEATURES
3. What am I investing in?

Product Features
Investment To invest in a portfolio of specific RHBIB’s asset classes of which is expected to offer stable return over an

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RHB ISLAMIC BANK BERHAD 200501003283 (680329-V) Incorporated in Malaysia

Objectives agreed tenure of the investment.

Investment The fund will be invested in a portfolio of specific asset to the investment funds via proportionate tagging.
Strategy
Risk Via management of the underlying asset portfolio and quarterly performance reports of the investment fund.
Assessment on
the Performance
of the
Investment
Assets
Fund Type Open-ended (with maturity date)
Currency Ringgit Malaysia (RM)
Investment Limit
Minimum Investment RM 500,000.00 (Ringgit Malaysia: Five Hundred Thousand only)
Amount
Maximum Investment No maximum amount of investment by IAH
Amount

Investment Minimum Fund Size RM 500,000.00 (Ringgit Malaysia: Five Hundred Thousand only)
account fund
size Maximum Fund Size No maximum amount of fund size (up to available Bank’s allocated underlying
asset)

Investment Overnight up to 364 days

Tenure
Auto Renewal Auto renewal is allowed
Effective Date of Upon placement by IAH (subjected to cut off time at 2.00 p.m)
Investment by
IAH
Profit Treatment The distributable profit from investment will be paid to IAH based on the following:
a) If actual profit is equal or above the expected profit agreed in terms and conditions at inception, RHBIB will
pay the expected profit rate to the IAH and any excess thereof will be treated as performance incentive fee
to RHBIB.
b) If the actual profit of the underlying asset is below the expected profit rate, RHBIB will pay actual profit
rate.
Loss Treatment  Loss (if any) shall be borne by IAH provided that such losses are not due to the RHBIB’s misconduct,
negligence or breach of specified terms.
 In the event where the losses is due to the RHBIB’s misconduct, negligence or breach of specified terms,
RHBIB as wakil will be liable and shall pay the profit (subjected to expected profit) up to the event of breach
and compensate for loss or damage including any actual cost suffered by the IAH.
Profit
Calculation No. of day of placement
Profit Profit Rate
= Principal* x x period
Calculation (%)
365
* Daily closing balance
Sample Illustration
Date of placement = 01/01/2019 Investment tenure = Overnight
Date of maturity = 02/01/2019 Indicative Profit Rate = 3.20% p.a.
Investment amount = RM 1,000,000.00
(Principal)
Profit Calculation:
Scenario 1 (Actual Profit > Indicative Profit)
Actual Profit = 4.50%
Bank to pay indicative profit upon maturity
Amount payable = Principal X Profit Rate (%) X (Number of days of placement period)/ 365 days)
to IAH = RM 1,000,000.00X 3.20% X (1/365 days)
= RM 87.67

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RHB ISLAMIC BANK BERHAD 200501003283 (680329-V) Incorporated in Malaysia

Scenario 2 (Actual Profit = Indicative Profit)

Actual Profit = 3.20%
Bank to pay indicative / actual profit upon maturity
Amount payable = Principal X Profit Rate (%) X (Number of days of placement period)/ 365 days)
to IAH = RM 1,000,000.00X 3.20% X (1/365 days)
= RM 87.67
Scenario 3 (Actual Profit < Indicative Profit)
Actual Profit = 3.00%
Bank to pay actual profit upon maturity
Amount payable = Principal X Profit Rate (%) X (Number of days of placement period)/ 365 days)
to IAH = RM 1,000,000.00X 3.00% X (1/365 days)
= RM 82.19

Profit Payment Profit will be paid at maturity

Frequency
Profit Payment Payment of profit and principal will be credited into IAH’s affiliate account maintain with the Bank.
Method
Wakalah Fee Not charged. RHBIB will earn profit via performance incentive fee.
Eligibility Minimum investment period is overnight up until 364 days. IAH will not be entitled for accrued profit in the
criteria for profit event of early redemption by IAH.
payment
Key Terms and Redemption
Conditions Redemption may be upon or prior to initially agreed maturity date. In the event of early redemption, IAH will not
be entitled for accrued profit. Losses (if any) will be solely borne by the IAH unless such losses due to bank’s
misconduct, negligence or breach of specified terms in the contract. Setting-off any outstanding from financing
amount due by the IAH (if IAH has a financing facility) against their placement in or return from their investment
in WMMIA-i is not allowed.
During maturity date, IAH may receive the available principal amount payable and accrued profit at maturity. (if
any). In the event of loss, the loss will be deducted from principal amount.
Documents  WMMIA-i Account Opening Form
Required  Product Disclosure Sheet (PDS)
 Terms and Conditions
 Customer Suitability Assessment (CSA); where applicable.

4. What are the possible outcomes of my investment?

The performance of investment is subject to the performance of the underlying asset. In the event of non-payment by the Financing
Customers, return to the IAH may be impacted and IAH may lose their principal amount.
Rate of Return for WMMIA-i
Average Rate of Return
Year Underlying Asset 1 Underlying Asset 2
(not required if only 1 underlying asset)

2014 4.97% 4.88% 4.93%

2015 5.16% 4.67% 4.92%
2016 5.59% 4.45% 5.02%
2017 5.00% 4.50% 4.75%
2018 4.95% 4.71% 4.83%
Important Notes: Past performance of the investment is not an indication of its future performance
KEY RISKS

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RHB ISLAMIC BANK BERHAD 200501003283 (680329-V) Incorporated in Malaysia

5. What is the key risk associated with this product?

The Bank will apply risk management controls over portfolio, legal and operational activities, including asset allocation, liquidity
adherence to investment objective and parameters, valuation, monitoring performance and others as per guided in the BNM’s
Investment Account Policy. Notwithstanding the above, in times of adversity in the markets, the Bank may manage the asset allocation
to safeguard the investment portfolio provided that such investment is within the investment objectives of the Fund.
As such, you are advised to carefully consider all risk factors before making an investment decision. IAH will be exposed to the
following risks:
i. Market Risk Refers to the potential impact of adverse price movements (ie: profit rate, foreign exchange rates or
equity prices, where applicable) on the economic value of an asset
ii. Credit Risk Refers to the potential that the Bank fails to meets its obligations to IAH in accordance with agreed
terms and conditions
iii. Liquidity Risk This RIA-i is non-transferable and non-tradable investment product. Hence, it carries the risk stemming
from the lack of marketability of an investment that cannot be bought or sold quickly enough to prevent
or minimise a loss or optimise any gain
iv. Operational Risk Refers to the potential loss resulting from inadequate or failed internal processes, people and systems
or external events
v. Legal Risk IAHs should ensure that, in entering into this investment it is not in breach of any laws, regulations,
contractual or any other legal limitations that may apply to investors. This investment is issued subject
to all applicable laws, regulations and guidelines. In the event of change in such laws, regulations or
guidelines, the Bank may be obliged to change some or all the terms and conditions of the investment,
including the possibility of an early termination.

FEES AND CHARGES

6. What are the fees and charges involved?

No. Items Amount

1. Wakalah Fee -
2. Ad-hoc Fund Performance Report Waived

VALUATIONS
7. When will the valuation strategy and frequency are published?

The underlying asset is considered financing and receivables which are non-derivative assets with fixed and or determinable
payments that are not quoted in an active market. The underlying asset is initially recognized at fair value and subsequently measured
at amortized cost using effective profit method.
CONTACT INFORMATION
8. What do I need to do if there are changes to my contact details?

a) It is important that you inform the Bank of any changes to your contact details to ensure that all correspondences reach you in a
timely manner.
b) You may informed the Bank such changes via various channels of communication such as the website, branches or call centre
at 03-9206 8118 / 8228.
9. Who should I contact for further information or to lodge a complaint?

a) To increase your awareness and financial literacy, You may refer to the consumer education booklet published in :
• http://www.bankinginfo.com.my/
• http://www.insuranceinfo.com.my/

b) If you wish to complaint on the products or services provided by us, you may contact us at:

RHB Islamic Bank Berhad

Group Treasury & Global Markets
Level 3, Tower 2, RHB Centre
Jalan Tun Razak
50400 Kuala Lumpur
Email : mm.corporate.funding@rhbgroup.com
Web : www.rhbgroup.com

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RHB ISLAMIC BANK BERHAD 200501003283 (680329-V) Incorporated in Malaysia

c) If your query or complaint is not satisfactorily resolved by us, you may contact

Bank Negara Malaysia LINK or TELELINK at:

Block D, Bank Negara Malaysia

Jalan Dato’ Onn, 50480 Kuala Lumpur
Tel : 1-300-88-5465
Fax : 03 – 2174 1515
Email : bnmtelelink@bnm.gov.my
Web : https://telelink.bnm.gov.my
SMS : 15888

Ombudsman for Financial Services (OFS) (Formerly known as Financial Mediation Bureau) at:

Level 14, Main Block, Menara Takaful Malaysia,

No. 4, Jalan Sultan Sulaiman
50000 Kuala Lumpur
Tel : 03-2272 2811
Fax : 03 – 2272 1577
Email : enquiry@ofs.org.my
Web : https://www.ofs.org.my

10. Who should I contact for further information or to lodge a complaint?

a) Should you require additional information on RHB Islamic Bank financing, please refer to the nearest Trade Finance
Centre for a detailed description of the product features, benefit privileges and fee charges.
b) If you have any enquiries, please contact us at:

RHB Islamic Bank Berhad

RHB Centre, Jalan Tun Razak,
50400 Kuala Lumpur.
Tel : 03 9206 8118
Fax : 03 9206 8088
Email : customer.service@rhbgroup.com
Web : www.rhbgroup.com

WARNING
THE RETURNS ON THIS INVESTMENT ACCOUNT WILL BE AFFECTED BY THE
PERFORMANCE OF THE UNDERLYING ASSETS. THE PRINCIPAL AND RETURNS ARE
NOT GUARANTEED AND CUSTOMER RISKS EARNING NO RETURNS AT ALL. IF THE
INVESTMENT IS REDEEMED EARLY, CUSTOMER MAY SUFFER LOSSES IN PART OR
THE ENTIRE PRINCIPAL SUM INVESTED. THIS INVESTMENT ACCOUNT IS NOT
PROTECTED BY PERBADANAN INSURANS DEPOSIT MALAYSIA (PIDM)

The information provided in this disclosure sheet is valid as at <Choose date><Choose date><Choose date>

I/ We hereby confirm having explained the Product Disclosure Sheet I/ We hereby confirm having received and understand the
(PDS) to Customer. explanation given.

…………………………………… …………………………………………
Staff Name: Name:
Staff ID: NRIC:

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