Phillip Funds. Focus. A Brief Synopsis. Where to Look Out For. 34q234q A MONTHLY NEWSLETTER EXCLUSIVELY FOR INVESTMENT PROFESSIONALS

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1 September q234q Phillip Funds A MONTHLY NEWSLETTER EXCLUSIVELY FOR INVESTMENT PROFESSIONALS A Brief Synopsis US economy added 151,000 new jobs in August, lower than the street expectation. The street was anticipating the nonfarm payroll report to show a gain of 180,000 in the month together with unemployment rate ticking down to 4.8% from the current 4.9% level. The report is not going to convince Fed officials to vote for a rate hike later this month and traders have been cutting the probability of September hike from 27% to 12%. However, the Fed would still want to tighten the monetary policy although the timeframe is still unknown. China s Caixin Manufacturing PMI slightly weakened to 50.0 in August from 50.6 in July, but remained above the 50 threshold for the second straight month. The stagnation that follows the signs of recovery in July may have been caused by a temporary tightening of proactive fiscal policies. The dormant manufacturing sector was backed by the uptick in services sector, where Caixin Services PMI rose to 52.1 in August from 51.7 in July. We are more convinced with August data compared to mixed July data and reckon the economy is showing signs of recovery. However, we are still cautious on the volatility of the market. The ASEAN bourses performance were mixed in the month of August. Jakarta Composite Index (JCI) leading the gainers after rising 3.3% followed by Stock Exchange of Thailand (SET) and FTSE Bursa Malaysia KLCI (FBMKLCI) with 1.6% and 1.5% return respectively. However, Philippines Composite Index (PCOMP) and Straits Times Index (STI) landed in negative territory of 2.2% and 1.7% respectively.1.7% respectively. Nymex WTI crude oil rose 7.5% for the month to $44.7/barrel from $41.6/barrel in July. This was chiefly due to spurred sentiment in expectation on production cut by OPEC. Crude palm oil price surged 17.5% in August to close at RM2,789.0/MT from RM2,374.0/MT in the previous month on the back of surprise increase in demand from China. Gold contracted 3.1%, from $1,349.0 in July to $1,307.9 in August mainly due to an early US interest rate expectation which caused investors to turn away from the safe haven asset. Focus Where to Look Out For Page Window to the World 2 A Peep into Malaysia 2 Lighting Up Your Path 3 Walking With You 3 PMB Model Portfolio 4 Tracking Our Recommendations 5 From the Scoreboard 6-11 Appendix B-3-6, Block B, Level 3 Unit 6 Megan Avenue II 12 Jalan Yap Kwan Seng Kuala Lumpur Malaysia Contact No: pcm@poems.com.my US interest rate hike would still be the main event to watch out by the emerging economies moving forward as it will determine the fund flows into the developing countries. We still like the stories in Thailand and Indonesia and cautiously optimistic on Philippines market as investors sentiment were damaged due to the recent bombing in the country to protest the newlyelected government. We also believe that China is recovering, but we think that the market can be very volatile. 1

2 Window to the World US Fed: No interest rate hike but case of rate rise strengthened US s Fed Chair, Janet Yellen delayed interest rate increase to give the economy more room to expand whilst agreeing that the case for rate rise had strengthened and made clear of central bank intention to raise rates this year. Fed also scaled back the number of hike it expects next year from three to two. Markets Performance M-o-M China stabilising growth but remain volatile China s economic condition s showed signs of recoveries amid government series of support, which include speed-up of approvals for infrastructure projects and growing state-driven investment. However, sluggish recoveries from the private investment remain a major setback as private sector has limited funding channel and less advantage in receiving contracts from government s pro-growth policies. Another concern raised from the consumption growth in the long run as income growth has been underperforming the GDP growth for two consecutive quarters. Bank of Japan (BOJ) targets Japan s Yield Curve BOJ shifted it policy framework from expanding the money supply to controlling interest rates, keeping its bond purchase program at JPY80tril annually over the long term while adjusting the volume of its asset purchases as necessary in the short term to control bond yields. This effectively help BOJ to manage the impact of its purchases and negative interest rates on Japanese banks. As a result, Japan s 10-year government bond yields hit the positive territory for the first time since March, climbing to as high as 0.005%, from minus 0.065% a day before. BOJ also announced to expand its ETF buying program. A Peep into Malaysia China 3.6% -12.8% Hong Kong 5.0% 4.9% Japan 1.9% -11.3% Malaysia 1.5% -0.9% South Korea 0.9% 3.7% US -0.2% 5.6% Source: Bloomberg Note: Percentage changes are in local currencies FBMKLCI rebounded in August FBMKLCI gained 1.5% in August to close at from in July. Foreign investors continues to be the net buyers for the month, buying RM1.6bil worth of stocks, extending its net buyer position for the year to RM2.6bil. Local institution remained as net seller, disposing Rm1.7bil whilst local retailer turned net buyer, buying RM82mil worth of stocks. Ringgit stalls, pending US and Japan central bank plans Ringgit inched down 0.05% in August, to close at RM against US Dollar compared to RM4.066 in the previous month despite crude oil rebounded 7.4% in August. This is mainly due to investors waited for central banks in the US and Japan to review their monetary policies that supported demand for higher-yielding assets in early September. Malaysia's export declined 5.3%y-o-y in July The sharp drop in export growth was broad-based, across all main product groups, which includes manufactured, agricultural and mining products. Export of manufactured goods fell by 3.9%y-o-y in July, dragged by a sharp 6% decline in exports of electrical and electronic products due to lacklustre demand from China, Japan and Europe, in tandem with lower global semiconductor sales, which fell 2.8%y-o-y in July. Source: Bloomberg 2

3 Lighting Up Your Path No rate hike in US, China s economic shows sign of stabilising, and ASEAN emerging markets back in limelight. Massive redemption from risky assets back to developed markets deemed unlikely for now with delay in interest rate hikes by US Federal Reserve and BOJ shifting its policy framework from expanding money supply to controlling interest rate. We are cautiously optimistic on China as the data have largely remained at expansionary mode despite the government slowly transforming the economy from heavy industries towards consumer driven and services economy. We are positive on ASEAN markets namely Indonesia, Philippines and Thailand given their stable economic and political situation. We are of the view that the government infrastructure and consumer driven theme remain valid but slightly cautious on Philippines market due to recent comment made by its President, Rodrigo Duterte towards US. These markets remain stock selective markets as the valuation are already at premium due to massive foreign fund flows. We are neutral on Malaysia equity market as corporate earnings remain lacklustre. We are of the view that the markets performance would still be tepid therefore we maintain our portfolio with exception to the addition of CIMB Principal Greater China Equity last month to reflect the change in our view on China s equity market but we will closely monitor China market as we still think that it can be very volatile. We will also keep monitoring the development of US Presidential Election, due to the uncertainty it will reign over the global economic environment post-election in November. Risk-aversed, investors could consider increasing cash holdings or investing into fixed income instruments. 3

4 PMB Model Portfolio Actual PMB Model Portfolio* Illustrative PMB Islamic Model Portfolio* Asset Allocation Return Asset Allocation Return Jun-16 Jul-16 Aug-16 Sep-16 Aug-16 Jun-16 Jul-16 Aug-16 Sep-16 Aug-16 Kenanga Growth 25% 20% 13% 13% 0.4% Eastspring Investments Dana al-ilham 25% 25% 25% 25% 1.1% Aberdeen Islamic Kenanga - 4% 4% 4% -1.0% World Equity Syariah Growth 25% 25% 25% 25% 0.3% Eastspring Affin Hwang Select 15% 15% 15% 15% 4.6% Investments Asia Quantum Islamic Income 25% 25% 25% 25% 0.3% Eastspring Investments My Focus Eastspring Investments Equity Income RHB-OSK-GS US Equity 5% 5% 5% 5% -5.3% 15% 20% 20% 20% 1.1% 5% 5% 5% 5% 1.9% PMB Shariah Agressive 25% 25% 25% 25% -5.4% Phillip Master Money Market CIMB Principal Asia Pacific Dynamic Income 15% 15% 17% 17% 0.3% 7% 7% 7% 7% 0.4% Manulife India Equity 6% 2% 2% 2% 1.0% CIMB Principal Greater China Equity - - 5% 5% 5.2% TA European 7% 7% 7% 7% 1.0% Total: 100% 100% 100% 100% Total: 100% 100% 100% 100% Source: PCM Affin Hwang Select Asia Quantum climbed 4.6% on the back of Ciputra Development, one of its top holding stocks which surged 10.0% on August. This is due to positive sentiment on property sector outlook in Indonesia, driven by the passing of the tax amnesty bill and lower final property sales tax. Eastspring Investment MY Focus slipped 5.3% in August, dragged by United U-Li which plunged 42.6% in August. The company stock performance was dragged by the uncertainty bestow upon RHB Asset Management after the resignation its CIO as several RHB funds owned United U-Li. The company has recorded higher revenue and better profit margin achieved during its 2QFY2016 result released. Source: PCM PMB Shariah Aggressive was down 5.4% in August, dragged by its top holding performance, namely SLP Resources and Oriental Food Industries Holding which plunged 27.7% and 30.5% respectively. Both of these stocks was affected by the resignation of RHB CIO in similar manner like United U-Li. CIMB Principal Greater China rose 5.2% in August, uplifted by Sina Corp and Weibo Crop which escalated 42% and 46.8% respectively. Sina benefited from the monetization of Weibo, which is well on track to monetize through the increasingly popular Key Opinion Leader (KOL) economy in China. KOLs referred to people who are followed by a large online audience, from celebrities to the broad masses of consumers and they mobilize internet platforms to create content and monetize their fan bases. For the month of August, our PMB Model portfolio extended gains by 0.95%, underperforming FBMKLCI which gained 1.5% for the month whilst PMB Islamic portfolio declined 1.1% for the month. 4

5 Name MALAYSIA CONVENTIONAL Equity % Growth % Growth Name M-o-M M-o-M 1 Eastspring Investments Small- Cap Affin Hwang Select Asia (Ex Japan) Quantum Kenanga Growth Affin Hwang Select Dividend Eastspring Investments MY Focus Eastspring Investments Equity Income ASIA Equity RHB China-India Dynamic Growth Affin Hwang Select Opportunity CIMB-Principal Asia Pacific Dynamic Income Mixed Assets 23 CIMB Principal Greater China Equity Affin Hwang Select Balanced Affin Hwang Select Income Mixed Assets Fixed Income 24 Eastspring Investments Asia Select Income AMB Income Trust GLOBAL 8 AmBond Equity 25 Aberdeen Islamic World Equity MALAYSIA (ISLAMIC) 26 Eastspring Investments Global Basics MY Equity 27 Eastspring Investments Global Emerging Markets PMB Shariah Premier AmGlobal Property Equities PMB Shariah Aggressive Manulife India Equity Affin Hwang AIIMAN Growth Tracking our Recommendations Eastspring Investments Dana al- Ilham Eastspring Investment Islamic Income 14 Kenanga Syariah Growth CIMB Islamic Balanced Growth TA European CIMB Global Titans RHB-OSK-GS US Equity MONEY MARKET 16 Dana Makmur Pheim Phillip Master Money Market Fixed Income OTHERS 17 AmBon Islam AmPrecious Metals Source: Lipper Note: Preferred 35 Manulife Investment Asia Pacific REIT Manulife India extended 1.0% in August, following announcement by the Reserve Bank of India (RBI) on series of positive measures intended to develop its bond market, to enhance participation and improve systemic liquidity. This move would liberalize the bond market and improve accessibility of funds for corporates. In order to encourage activity in the corporate bond market, broker authorized as market makers will be allowed to participate in the corporate bond repo market For the Fixed Income Category, we are of the view that investors may want to consider having exposure to fixed income funds as per our recommendations, in light of near to medium term volatility. Overall low yield environment in developed nations will benefit emerging market bonds massively as investors seek yield. As for the mixed asset category, Eastspring Investments Asia Select Income gained 2.2% in August, supported by its allocation into India and China. China s August activity data was marginally better than July reading thanks to September mid-autumn Festival and G20 summit that was held in China in early September. The summit led to many factories required by the Chinese government to go on hiatus in order to minimise pollution. Thus, led to manufacturers and exporters front-loading their activities and deliveries in August. With the prolonged low interest rate environment in developed countries i.e. Japan, Europe and England and also the further delay in the Fed interest rate hike, we reckon investors will continue to hunt for yields, which would benefit REIT funds. Therefore, we would like to reiterate that we added Manulife Investments Asia Pacific REIT and AmPrecious Metals, a safe haven proxy in our tracking recommendations. 5

6 From the Scoreboard Name Malaysia, Equity-Growth Launch 6-MTH RETURN 3-YR STD DEV Affin Hwang Equity 29/4/ Affin Hwang Growth 28/6/ Affin Hwang Principled Growth 22/7/ E AMB Ethical Trust 7/1/ AMB SmallCap Trust 3/3/ E AMB Unit Trust 26/3/ E AMB Value Trust A MYR 7/1/ E AmDividend Income 28/3/ E AmMalaysia Equity 15/10/ E AmTotal Return 10/1/ Areca equitytrust 23/4/ E CIMB-Principal Equity 1/8/ E CIMB-Principal Equity Aggressive 3 12/3/ E Eastspring Investments Equity Income 18/10/ E Eastspring Investments Growth 29/5/ E Eastspring Investments MY Focus 1/3/ KAF Tactical 2/9/ E Kenanga Growth 17/1/ E Kenanga Malaysian Inc 9/11/ Kenanga OA Inv-Kenanga Blue Chip 23/4/ E Kenanga Premier 26/11/ E Libra DividendEXTRA 18/3/ E Libra EquityEXTRA 10/9/ Maybank Q-Opportunities 4/7/ E MIDF Amanah Dynamic 5/5/ MIDF Amanah Growth 2/12/ Phillip Master Equity Growth 18/6/ E RHB Capital 12/4/ RHB KLCI Tracker 3/4/ E RHB Malaysia Dividend 4/3/ E RHB Smart Treasure 7/9/ E TA Comet 1/10/ TA Growth 1/7/ TA High Growth 7/6/ AVERAGE RTN/ RISK ABS () RAR () Malaysia, Equity-Islamic Growth Aberdeen Islamic Malaysia Equity A 17/1/ Affin Hwang Aiiman Equity 1/8/ E Affin Hwang Aiiman Growth 8/10/ AmanahRaya Islamic Equity 23/4/ E AMB Dana Ikhlas 17/9/ E AMB Dana Yakin 24/11/ AMB Shariah Value Plus A-MYR 16/6/ AMB Shariah Value Plus C-MYR 16/6/ E AmIslamic Growth 10/9/ E AmIttikal 12/1/ BIMB i Dividend 18/3/ BIMB i Growth 30/6/ BIMB-Arabesque i Global Dividend 1 - MYR 5/11/ E CIMB Islamic Al-Azzam Equity 1/8/ E CIMB Islamic Equity Aggressive 15/6/ E Eastspring Investments Dana al-ilham 14/8/ E KAF Dana Adib 25/3/ E Kenanga Islamic 15/8/ E Kenanga OA Inv-Kenanga Ekuiti Islam 23/4/ Kenanga OA Inv-Kenanga Shariah E Growth Opps 23/4/

7 Name Launch 6-MTH RETURN 3-YR STD DEV E Kenanga Syariah Growth 29/1/ E Libra Amanah Saham Wanita 4/5/ Manulife Shariah-Dana Ekuiti 27/5/ E MIDF Amanah Islamic 14/5/ Pacific Dana Dividen 26/7/ PMB Dana Al-Aiman 19/5/ PMB Dana Bestari 3/10/ PMB Dana Mutiara 5/8/ E PMB Shariah Aggressive 21/11/ PMB Shariah Dividend 21/7/ E PMB Shariah Growth 28/12/ E PMB Shariah Index 25/3/ E PMB Shariah Premier 12/6/ PMB Shariah Small-Cap 16/5/2016 PMB Shariah Tactical 29/10/ E RHB Dana Islam 26/10/ RHB-OSK Islamic Growth 26/1/2004 TA Dana Fokus 17/6/ TA Islamic 24/4/ AVERAGE RTN/ RISK ABS () RAR () Malaysia Equity Small Cap E CIMB-Principal Small Cap 20/4/ E Eastspring Investments Small-cap 29/5/ E KAF Vision 1/3/ Kenanga OA Inv-Kenanga Growth E Opportunities 23/4/ MIDF Amanah Strategic 1/6/ E RHB Small Cap Opportunity 20/4/ TA Small Cap 9/2/ AVERAGE Asia Equity Offshore Affin Hwang Select APAC ex-japan REITs and Infra 25/4/ Affin Hwang Select Asia (ex Japan) Opportunity 18/7/ Affin Hwang Select Asia (ex Japan) Quantum 15/4/ Affin Hwang Select Dividend 28/3/ Affin Hwang Select Opportunity 7/9/ E Affin Hwang World Series - China Growth 11/7/ AmASEAN Equity 6/6/ AmAsia Pacific Equity Income 18/4/ AmAsia Pacific Leisure Dividend 25/2/ AmAsia Pacific REITs B MYR 18/7/ AmAsia Pacific REITs Plus 1/7/ AmAsia-Pacific Property Equities 18/7/ AmCumulative Growth 24/7/ CIMB-Principal ASEAN Equity 12/9/ CIMB-Principal Asia Pacific Dynamic Income MYR 25/4/ CIMB-Principal China-India-Indonesia Equity 21/1/ E CIMB-Principal Equity Growth & Income 15/5/ E CIMB-Principal Greater China Equity 12/6/ Eastspring Investments Asia Pacific Equity MY 21/7/ Eastspring Investments Dinasti Equity 26/10/ Eastspring Investments Indonesia Equity MY 27/4/ Kenanga Asean Tactical Total Return 1/7/ Kenanga Asia Pacific Total Return 11/7/ Kenanga Global Opportunities 21/6/ Libra Consumer and Leisure Asia 18/7/ Manulife Asian Small Cap Equity MYR 8/4/

8 Name Launch 6-MTH RETURN 3-YR STD DEV Manulife China Equity 7/1/ Manulife Equity Plus 29/12/ Manulife Global Resources 7/1/ Manulife Investment Asia-Pacific REIT 7/6/ Manulife Investment Greater China 21/10/ Manulife Investment Indonesia Equity 19/10/ Manulife Investment Pacific 23/6/ Pacific Focus China 19/5/ E Pheim Asia Ex-Japan 30/6/ RHB Asean 2/12/ RHB Asia Consumer 18/1/ RHB Asia Financials 11/1/ E RHB Asia Pacific 6/1/ RHB Asian Growth Opportunities 8/1/ RHB Big Cap China Enterprise 3/12/ RHB China-India Dynamic Growth 11/3/ E RHB Emerging Opportunity 18/5/ E RHB Equity 8/8/ RHB Indonesia Equity Growth 4/4/ E RHB Resources 16/5/ RHB Singapore Income Feeder MYR 18/1/ TA Asian Dividend Income 15/8/ E TA South East Asia Equity 28/11/ Templeton Asian Growth MYR A 21/9/ Templeton Asian Smaller Companies MYR A 7/10/ United ASEAN Discovery 8/12/ AVERAGE RTN/ RISK ABS () RAR () Equity Offshores-Others Affin Hwang Global Commodity 20/8/2007 Affin Hwang World Series - EU Unconstrained MYR H 9/11/ Affin Hwang World Series - Global Equity MYR 23/11/ AmBRIC Equity 9/11/2009 AmCommodities Equity 19/7/ AmGlobal Agribusiness 3/5/ AmGlobal Emerging Market Opportunities 18/3/ AmGlobal Property Equities 25/10/ AmPan European Property Equities 6/3/ AmPrecious Metals 15/11/ AmSchroder European Equity Alpha 8/8/ BIMB-Arabesque i Global Dividend 1 - MYR 5/11/ CIMB-Principal Australian Equity 20/3/ CIMB-Principal Global Titans 18/7/ Eastspring Investments Global Basics MY 17/1/ Eastspring Investments Global Emerging Markets 11/1/ Eastspring Investments Global Leaders MY 23/3/ Franklin U.S. Opportunities MYR 8/5/ Global Dividend - MYR 11/4/2016 Global Dividend - USD 11/4/2016 Global Multi-Asset Income MYR 17/3/ KAF Global Diversified Property 9/8/2007 KAF Global Equities 19/5/2006 Kenanga Global Dividend 19/3/ Manulife India Equity 7/1/ Manulife Investment Pacific 23/6/ Manulife Investment U.S. Equity 21/10/ Pacific Asia Brands 20/1/ Pacific Focus18 16/6/

9 Name Launch 6-MTH RETURN 3-YR STD DEV Pacific Glb Agriculture, Infra And Resources 12/4/ Pacific Global Stars 20/7/ RHB Agriculture 11/8/ RHB Global Equity Yield 9/11/ RHB Global Food Islamic Equity 11/8/ RHB Global Macro Opportunities MYR 1/6/2016 RHB Global Macro Opportunities USD 1/6/2016 RHB Global New Stars 24/1/ RHB Global Themes 5/1/2007 RHB Gold And General 21/7/ RHB Private Equity Opportunity 1 28/7/2016 RHB US Focus Equity 15/10/ RHB-GS BRIC Equity 11/1/2011 RHB-GS US Equity 18/5/ TA BRIC and Emerging Markets 25/2/ TA European Equity 20/3/ TA Global Technology 26/5/ Templeton Global Equity MYR A 13/4/ AVERAGE RTN/ RISK ABS () RAR () Asia Equity Offshore Islamic Aberdeen Islamic APAC ex Japan Equity A MYR 2/12/ Aberdeen Islamic World Equity A MYR 17/1/ Affin Hwang Aiiman Asia (ex Japan) Growth MYR 14/12/ AmIslamic Greater China 8/11/ E AmOasis Global Islamic Equity 21/4/ E CIMB Islamic Asia Pacific Equity 2/6/ Eastspring Investments Asia Pacific Shariah Equity 22/11/2007 KAF Australia Islamic Property A AUD 1/8/2016 KAF Australia Islamic Property A MYR 1/8/2016 Manulife Investment Asia-Pacific REIT 7/6/ Manulife Investment Shariah Asia-Pacific 16/1/ Namaa' Asia-Pacific Equity Growth 15/8/ E Pheim Asia Ex-Japan Islamic 1/11/ RHB Islamic Asean Megatrend B USD 26/4/2016 RHB Islamic Asean Megatrend MYR 26/4/2016 RHB Islamic Global Developed Markets MYR 28/5/ RHB-OSK Asia Pacific Maqasid 23/2/2010 AVERAGE Malaysia Mixed Assets Affin Hwang Aiiman Select Income 1/3/ E Affin Hwang Select Balanced 28/7/ Affin Hwang Select Income 6/1/ Affin Hwang Select SGD Income MYR 1/8/ E Affin Hwang Tactical 10/8/ E AMB Balanced Trust 19/9/ E AMB Index-Linked Trust 16/5/ E AmBalanced 16/9/ E AmConservative 16/9/ E Eastspring Investments Balanced 29/5/ E Eastspring Investments Dynamic 6/11/ InterPac Cash 25/7/ InterPac Dynamic Equity 25/7/ KAF Enhanced Bond 30/1/ E KAF First 16/1/ KAF Jade 1/11/ E Kenanga Balanced 23/5/ E Kenanga OA Inv-Kenanga Diversified 23/4/

10 E Name Launch 6-MTH RETURN 3-YR STD DEV Kenanga OA Inv-Kenanga Managed Growth 23/4/ Libra Resource Equity 18/3/ E Libra TacticalEXTRA 18/3/ Maybank Q-Target Return 4/7/ E Pacific SELECT Balance 11/8/ E Pacific SELECT Income 11/8/ E Pheim Emerging Companies Balanced 28/1/ E Pheim Income 28/1/ E RHB Goldenlife /2/ E RHB Goldenlife /2/ E RHB Goldenlife Today 21/2/ E RHB Growth And Income Focus 7/1/ E RHB Kidsave 10/5/ E RHB Smart Balanced 7/9/ E RHB Smart Income 7/9/ E RHB Thematic Growth 26/9/ TA Income 6/5/ AVERAGE RTN/ RISK ABS () RAR () Malaysia Mixed Assets-Islamic Affin Hwang Aiiman Balanced 11/11/ E AmIslamic Balanced 10/9/ BIMB Dana Al-Falah 27/12/2001 BIMB Dana Al-Munsif 27/12/ E CIMB Islamic Balanced Growth 26/5/ E CIMB Islamic Enhanced Sukuk 23/2/ E Dana Makmur Pheim 28/1/ E Eastspring Investments Dana al-islah 14/8/ E Eastspring Investments Dana Dinamik 25/2/ InterPac Dana Safi 25/7/ E KAF Dana Alif 26/2/ E Kenanga Islamic Balanced 6/12/ Kenanga OA Inv-Kenanga Shariah Balanced 23/4/ E Libra SyariahEXTRA 1/1/ E PMB Shariah Balanced 8/12/ E RHB Dana Hazeem 18/2/ RHB Mudharabah 9/5/ TA Dana Optimix 17/1/ AVERAGE E Mixed Assets Offshore Affin Hwang Select AUD Income MYR 18/3/ AmAustralia 15/3/ Amundi International 3/9/ Amundi International - USD 3/5/2016 Eastspring Investments Asia Select Income 18/11/ Eastspring Investments Enhanced Income 28/5/ E KAF Core Income 2/9/ Libra IncomeEXTRA 10/9/ Pacific Income 18/8/ Pacific Real Opportunities Absolute Return 21/4/2016 RHB Asian Income MYR 5/6/ RHB Golden Dragon 8/5/ RHB-OSK Muhibbah Income 12/3/2007 E TA Asia Pacific Islamic Balanced 7/11/ E TA Global Asset Allocator 12/6/ Templeton Global Balanced MYR A 5/5/ United Bond & Equity Strategic Trust 8/9/ AVERAGE

11 Name Fixed Income Launch 6-MTH RETURN 3-YR STD DEV Affin Hwang Bond 12/12/ Affin Hwang Flexible Maturity Income IV 21/6/2016 Affin Hwang Select Bond 28/7/ E AmanahRaya Unit Trust 21/9/ E AMB Dana Arif A MYR 27/4/ E AMB Dividend Trust 6/6/ E AMB Enhanced Bond Trust 27/5/ E AMB Lifestyle Trust Today 25/11/ AmBond 20/1/ AmConstant Multi Maturity 18/11/2010 AmConstant Multi Maturity 2 17/10/2011 E AmDynamic Bond 16/9/ E AmIncome Plus 17/6/ AmTactical Bond B MYR 29/10/ Amundi Bond Global Aggregate MYR 3/9/ Amundi Bond Global Aggregate USD 3/6/2016 Areca incometrust 23/4/ E CIMB-Principal Bond 15/11/ E CIMB-Principal Strategic Bond 23/3/ E Eastspring Investments Bond 29/5/ Eastspring Investments Bond Plus 1/4/ Franklin Malaysia Sukuk A MYR 18/11/ Franklin Malaysia Sukuk I MYR 18/11/ KAF Bond 1/11/ Kenanga Bond 15/8/ Kenanga Global Emerging Markets Debt 22/7/2008 Kenanga OA Inv-Kenanga Income Plus 23/4/ E Libra BondEXTRA 8/10/ Libra Strategic Opportunity 1/11/ Manulife Bond Plus 29/12/ Maybank Financial Institutions Income 17/12/ Maybank Global Bond 4/11/ Maybank Q-Income 4/7/ Opus Dynamic Income 3/6/ RHB Asian High Yield-MYR 8/6/ E RHB Asian Total Return 26/2/ RHB Emerging Markets Bond 3/1/ RHB Energy 23/3/ E RHB Income 1 18/4/2001 E RHB Income 2 26/2/ TA All-Cycle Commodities Income 4/5/ TA Total Return Fixed Income 1/10/ Templeton Asian Bond MYR 5/2/ Templeton Global Total Return MYR 14/11/ United Asian High Yield MYR 30/6/ United Income Plus 9/2/ United RMB Income & Growth MYR 28/11/2013 United Target Income Bond 7 18/7/2016 AVERAGE RTN/ RISK ABS () RAR () Fixed Income Islamic Affin Hwang Aiiman Global Sukuk MYR 14/12/ E Affin Hwang Aiiman Income Plus 28/6/ E AmanahRaya Syariah Trust 21/9/ E AMB Income Trust 19/6/ E AmBon Islam 26/11/ AmDynamic Sukuk A 12/6/ BIMB Dana Al-Fakhim 13/9/ E CIMB Islamic Enhanced Sukuk 23/2/ Eastspring Investments Dana Wafi 21/2/

12 Name Launch 6-MTH RETURN 3-YR STD DEV Kenanga OA Inv-Kenanga Bon Islam 23/4/ E Libra ASnitaBOND 18/3/ Libra Dana Safa 1/12/ Manulife Shariah-Dana Sukuk 27/5/ Opus Shariah Income 18/9/ Pacific Dana Murni 25/3/ E RHB Islamic Bond 25/8/ AVERAGE RTN/ RISK ABS () RAR () Note: ABS denotes ranking based on absolute return RAR denotes ranking based on risk-adjusted return - is from 31/12/2015 to 31/08/ and 3 year returns are based on rolling returns. E EPF approved The Mechanism 1) Superior ranking based on risk-adjusted-return. 2) Commendable ranking based on absolute return. 3) Fund size (minimum RM25 million) 4) Check on short-term return (1-month or 3-month returns) 5) Check top holdings and sectors allocation 6) Qualitative evaluations (if needed) DISCLAIMER: For Phillip Capital Management Sdn Bhd This publication is solely for information only. It should not be construed as an offer or solicitation for the subscription, purchase or sale of the securities mentioned herein. The publication has been prepared by Phillip Capital Management Sdn Bhd on the basis of publicly available information, internally developed data and other sources believed to be reliable. Whilst we have taken all reasonable care to ensure that the information contained in this publication is accurate and the opinions are fair and reasonable, it does not guarantee the accuracy or completeness of this publication. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of any person or group of persons acting on such information and advice. This publication was prepared without regard to your specific investment objectives, financial situation or particular needs. Whilst views and advice given are in good faith, you should not regard the publication as a substitute for the exercise of your own judgement and should seek other professional advice for your specific investment needs or financial situations. Nona Salleh Executive Chairperson 12

13 Appendix m-o-m % m-o-m % PMB Islamic m-o-m % KLCI PMB Portfolio Change Change Portfolio Change Aug July June May Apr Mar Feb Jan Dec Nov Oct Sep Aug July June May Apr Mar Feb Jan Dec Nov Oct Sep Aug Jul Jun May Apr Mar Feb Jan Dec Nov Oct Sep Aug Jul Jun May

14 KLCI m-o-m % Change PMB Portfolio m-o-m % Change PMB Islamic Portfolio m-o-m % Change Apr Mar Feb Jan Dec Nov Oct Sep Aug July Jun May Apr Mar Feb Jan Dec Nov Sep Aug Jul Jun May Apr Mar Feb Jan Dec Nov Oct Sep-10 1, Aug-10 1, Jul-10 1, Jun-10 1, May-10 1, Apr-10 1, Mar-10 1, Feb-10 1, Jan-10 1, Dec-09 1, * Performance includes income distribution of funds using reinvestment method. 14