THIS REVISED INFORMATION MEMORANDUM DATED 31 OCTOBER 2016 IS ISSUED TO REPLACE THE INFORMATION MEMORANDUM DATED 31 MAY 2016.

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1 Launch Date 21 April 2016 Manager Pacific Mutual Fund Bhd ( U) a company incorporated in Malaysia under the Companies Act 1965 Trustee CIMB Commerce Trustee Berhad ( A) INVESTORS ARE ADVISED TO READ AND UNDERSTAND THE CONTENTS OF THIS INFORMATION MEMORANDUM. IF IN DOUBT, PLEASE CONSULT A PROFESSIONAL ADVISER. FOR INFORMATION CONCERNING CERTAIN RISKS, WHICH SHOULD BE CONSIDERED BY PROSPECTIVE INVESTORS, SEE RISKS COMMENCING ON PAGE 17. A member of the OCBC Group THIS REVISED INFORMATION MEMORANDUM DATED 31 OCTOBER 2016 IS ISSUED TO REPLACE THE INFORMATION MEMORANDUM DATED 31 MAY

2 RESPONSIBILITY STATEMENTS This information memorandum has been seen and approved by the directors of Pacific Mutual Fund Bhd ( the Manager ) and they collectively and individually accept full responsibility for the accuracy of all information contained herein and confirm, having made all enquiries which are reasonable in the circumstances, that to the best of their knowledge and belief, there are no other facts omitted which would make any statement herein misleading. STATEMENTS OF DISCLAIMER The Securities Commission Malaysia will not be liable for any non-disclosure on the part of the Manager and takes no responsibility for the contents of the information memorandum, makes no representation as to its accuracy or completeness and expressly disclaims any liability whatsoever for any loss howsoever arising from, or in reliance upon the whole or any part of the content of this information memorandum. ADDITIONAL STATEMENTS While it is the duty of the Manager to ensure that all comments given to the media is accurate and true at the time the comments were given, misquotation may still occur either by the media or third parties, which are out of the Manager s control. In such situations, the Manager and its employees hold no responsibility for any claims and liabilities due to the misquotations by the media and/or third parties, and are under no obligation to fulfil any expectation or demand in relation to the misquoted statements. The distribution of this information memorandum and offering, purchase, sale or transfer of units of the Fund in certain jurisdictions may be restricted by law. In these jurisdictions, other than Malaysia, the Manager has not applied to allow distribution of this information memorandum or units of the Fund. Therefore, this information memorandum does not constitute an offer or invitation to purchase units of the Fund in any jurisdiction in which such offer or invitation would be unlawful. i

3 TABLE OF CONTENTS Responsibility Statements... i Table Of Contents... ii Corporate Directory 1 Definitions. 3 Key Information Of The Fund Risks Risks Associated To The Fund 17 Risk Management Strategies And Techniques 21 Transaction Information. 22 Pricing Policies 22 Minimum Initial Investment 22 Minimum Additional Investment 23 Purchase 23 Redemption 24 Periodic Reporting To Investors 25 Policies And Procedures To Prevent Money Laundering Activities 25 Prudential Control 25 All About The Manager Pacific Mutual Fund Bhd Our Shareholders 26 Our Core Business 26 Our Key Investment Team Members 26 Trustee Of The Fund, Its Duties And Responsibilities CIMB Commerce Trustee Berhad ( A) 28 Delegation Of Share Custodial Functions 28 The Trustee s Responsibilities 28 Trustee s Statement Of Responsibility 28 Rights And Liabilities Your Rights As A Unitholder 29 Your Liabilities As A Unitholder 29 Your Limitations And Restrictions As A Unitholder 29 Winding Up Of The Fund 29 Power To Call For A Meeting 29 List Of Pacific Mutual Fund Bhd Offices, Agency Offices And Institutional Unit Trust Advisers ii

4 CORPORATE DIRECTORY Manager Pacific Mutual Fund Bhd ( U) Business Office 1001, Level 10, Uptown 1, No. 1 Jalan SS21/58, Damansara Uptown, Petaling Jaya, Selangor Darul Ehsan Tel: Fax: customercare@pacificmutual.com.my Website: Registered Office 19 th Floor, Menara OCBC, No. 18 Jalan Tun Perak, Kuala Lumpur Tel: ; Manager s Delegate (Internal Audit Function) Boardroom Corporate Services (KL) Sdn Bhd (3775-X) Lot 6.05, Level 6, KPMG Tower, 8 First Avenue, Bandar Utama, Petaling Jaya, Selangor Darul Ehsan, Malaysia Tel: Fax: Website: Board Of Directors Gerard Lee How Cheng (Chairman) James Tan Thian Peng Dato Ahmad Zahudi bin Haji Salleh Ong Eu Jin* Datuk Lee Say Tshin* Teh Chi-cheun Audit Committee James Tan Thian Peng (Chairman) Ong Eu Jin** Datuk Lee Say Tshin** Investment Committee Gerard Lee How Cheng (Chairman) James Tan Thian Peng Mej. Jen. (B) Dato Paduka Che Hasni bin Che Ahmad Dato Ahmad Zahudi bin Haji Salleh Ong Eu Jin*** Datuk Lee Say Tshin*** Trustee CIMB Commerce Trustee Berhad ( A) Registered Office: Level 13, Menara CIMB, Jalan Stesen Sentral 2, Kuala Lumpur Sentral, Kuala Lumpur Tel: Fax: Website: Business Office: Level 21, Menara CIMB, Jalan Stesen Sentral 2, Kuala Lumpur Sentral, Kuala Lumpur Tel: Fax: Delegate: CIMB Bank Berhad (13491-P) Registered Office: Level 13, Menara CIMB, Jalan Stesen Sentral 2, Kuala Lumpur Sentral, Kuala Lumpur Tel: Fax: Website: Business Office: Level 21, Menara CIMB, Jalan Stesen Sentral 2, Kuala Lumpur Sentral, Kuala Lumpur Tel: Fax: Auditors Ernst & Young (AF: 0039) Level 23A, Menara Milenium, Jalan Damanlela, Pusat Bandar Damansara, Kuala Lumpur Tel: Website: Tax Advisers Ernst & Young Tax Consultants Sdn Bhd ( K) Level 23A, Menara Milenium, Jalan Damanlela, Pusat Bandar Damansara, Kuala Lumpur Tel: Website: * Independent Directors ** Independent Audit Committee members *** Independent Investment Committee members 1 Corporate Directory

5 Banker OCBC Bank (Malaysia) Berhad ( W) Menara OCBC, No. 18 Jalan Tun Perak, Kuala Lumpur Tel: Solicitors For The Manager Soon Gan Dion & Partners Advocates and Solicitors 1 st Floor, No. 73, Jalan SS 21/1A, Damansara Utama, Petaling Jaya, Selangor Federation Of Investment Managers Malaysia (FiMM) , 6 th Floor, Wisma Tune, No. 19 Lorong Dungun, Damansara Heights, Kuala Lumpur Website: 2 Corporate Directory

6 DEFINITIONS The meaning of some terms in this information memorandum is explained below: Board of Directors / Directors of Pacific Mutual Fund Bhd Independent Directors / Directors Bursa Malaysia business day(s) deed eligible market financial institution The stock exchange managed or operated by Bursa Malaysia Securities Berhad. A day on which Bursa Malaysia is open for trading. The deed and all supplemental deeds entered into between the Manager and the Trustee in relation to the Fund. A market that is regulated by a regulatory authority, operates regularly, is open to the public and has adequate liquidity for the purposes of the Fund. If the institution is in Malaysia: (i) licensed bank*; (ii) licensed investment bank*; (iii) licensed Islamic bank # ; or (iv) development financial institutions regulated under the Development Financial Institutions Act Note: * has the same meaning as prescribed under the Financial Services Act 2013 # a bank licensed under the Islamic Financial Services Act 2013 Fitch Fund / Pacific ROAR Fund Funds GST information memorandum IOSCO IUTA Moody s NAV NAV per unit over-the-counter (OTC) Pacific Mutual / Company / Manager / we SC Guidelines SC / Securities Commission short derivative Fitch Ratings Pacific Real Opportunities Absolute Return Fund For the purpose of this information memorandum, unless the context otherwise requires, Funds mean all funds managed by the Manager. Tax levied on goods and services pursuant to the Goods and Services Tax Act Refers to the information memorandum and supplementary or replacement information memorandum (if any) in relation to the Fund. International Organization of Securities Commissions Institutional Unit Trust Advisers IUTA is an institution, body or organisation that is licensed to distribute unit trust funds. IUTA must be registered with the Federation of Investment Managers Malaysia (FiMM). Moody s Investors Service Net asset value (NAV) of the Fund is the total value of the Fund s assets minus its liabilities at a valuation point. In computing the annual management fee and annual trustee fee, the NAV of the Fund should include the management fee and the trustee fee for the relevant day. Net asset value (NAV) per unit of the Fund is the NAV divided by the total number of units in circulation, at a particular valuation point. This is the transaction of financial securities or instruments directly between the buyer and seller and is not conducted via a market/exchange. Pacific Mutual Fund Bhd ( U) Guidelines on Unlisted Capital Market Products Under the Lodge and Launch Framework issued by the Securities Commission Malaysia as may be amended from time to time. Securities Commission Malaysia A derivative is a financial contract between a seller and a buyer, where the value of such a contract is derived from the price of an underlying asset. Derivatives have no value in and of themselves their value is based on the expected future price movements of their underlying asset. Examples of derivatives are futures, options and swaps. A short derivative is the purchase of a contract which results in an increase in value of the contract as the price of underlying asset falls. Conversely, the value of the contract will fall if the price of the underlying asset rises. 3 Definitions

7 short term / medium term / long term sophisticated investor Short term - below one year; medium term - one year to three years; long term - above three years. Means any person who comes within any of the categories of investors as set out in Part 1, Schedule 6 and 7 of the Capital Markets and Services Act 2007 ( CMSA ). These would include (but are not limited to) the following: Accredited investors 1. a unit trust scheme, prescribed investment scheme or private retirement scheme; 2. a holder of a Capital Markets Services License; 3. an executive director or a chief executive officer of a holder of a Capital Markets Services License; 4. a closed end fund approved by the Securities Commission; 5. a bank licensee or insurance licensee as defined under the Labuan Financial Services and Securities Act 2010; 6. a licensed institution as defined in the Financial Services Act 2013; 7. an insurance company registered under the Financial Services Act 2013; or 8. Bank Negara Malaysia. High-net worth entities 1. a company that is registered as a trust company under the Trust Companies Act 1949 which has assets under management exceeding RM10 million or its equivalent in foreign currencies; 2. a corporation that is a public company under the Companies Act 1965 which is approved by the Securities Commission to be a trustee under the CMSA and has assets under management exceeding RM10 million or its equivalent in foreign currencies; 3. a corporation with total net assets exceeding RM10 million or its equivalent in foreign currencies based on the last audited accounts; 4. a partnership with total net assets exceeding RM10 million or its equivalent in foreign currencies; 5. a statutory body established by an Act of Parliament or an enactment of any State; or 6. a pension fund approved by the Director General of Inland Revenue under section 150 of the Income Tax Act High-net worth individual 1. an individual a. whose total net personal assets, or total net joint assets with his or her spouse, exceeds RM3 million or its equivalent in foreign currencies, excluding the value of the individual s primary residence; b. who has a gross annual income exceeding RM300,000 or its equivalent in foreign currencies per annum in the preceding 12 months; or c. who, jointly with his or her spouse, has a gross annual income exceeding RM400,000 or its equivalent in foreign currencies per annum in the preceding 12 months. 4 Definitions

8 Standard & Poor s Trustee unitholder Standard & Poor s Financial Services CIMB Commerce Trustee Berhad ( A) The person for the time being who is registered pursuant to the deed as a holder of units, including a jointholder. 5 Definitions

9 KEY INFORMATION OF THE FUND Management Company: PACIFIC MUTUAL FUND BHD ( U) This section contains the salient information about the Fund. Investors should read and understand the whole information memorandum before making any investment decisions. FUND INFORMATION FUND NAME Pacific ROAR Fund FUND PROFILE Fund Category Fund Type Characteristic Mixed assets (wholesale) Growth Aggressive BASE CURRENCY Ringgit Malaysia (MYR) INITIAL OFFER PRICE RM INITIAL OFFER PERIOD 21 April April 2016 (seven days) FINANCIAL YEAR END 30 June FUND SIZE AND FUND CLOSURE The Manager may terminate the Fund, without having to obtain the approval of unitholders, and discontinue the Fund if the NAV of the Fund is below the minimum fund size of RM5 million on the expiry of the initial offer period. In the event, at any time during the existence of the Fund, the NAV of the Fund falls below the minimum fund size of RM10 million, the Manager may terminate the Fund without having to obtain the approval of the unitholders. 6 Key Information Of The Fund

10 FUND INFORMATION (Continuation) INVESTMENT OBJECTIVE The Fund aims to provide capital growth in the medium to long term by investing in a portfolio of local and foreign investments. Any material changes to the Fund s objective would require unitholders approval. INVESTMENT POLICY AND STRATEGY The Fund adopts a tactical style in investing across all asset classes and sectors available globally. In its quest to deliver profits consistently, this unconstrained approach to investing requires understanding the available rewards and the corresponding risks to position the Fund in ways that best take advantage of all existing opportunities. In achieving the Fund s investment objective, the Manager invests the assets of the Fund in the following investments that are available locally and overseas: A. Equity asset class: Equities and equity-related securities. Equity-related securities comprise warrants and rights that are issued in relation to underlying equities in which the Fund can invest. B. Fixed income asset class: Bonds and money market instruments in the domestic market; and Deposits with licensed financial institutions. C. Collective investment schemes (CIS): Where the CIS may be in-house or externally managed funds; and Where the underlying investments may be equity and equityrelated securities or bonds and money market instruments (local or foreign). D. Exchange traded funds (ETFs) and long derivatives: These are listed ETFs that track an equity index, a bond index or a commodity index, among others; and Long derivatives such as options and futures. E. Inverse exchange traded funds (inverse ETFs) and short derivatives: Inverse ETFs whose objectives are to perform the reverse of an index tracked; and Short derivatives such as options and futures. F. Alternative investments where the underlying investments include, but are not limited to: Commodities Market and sector indices Currencies Interest rates Volatility 7 Key Information Of The Fund

11 FUND INFORMATION (Continuation) INVESTMENT POLICY AND STRATEGY (Continuation) Dynamic Asset Allocation The Fund s asset allocation can fluctuate in a broad range depending on expectations of economic and financial market conditions. There may be significant shifts into and out of asset categories via an active asset allocation strategy. The dynamic asset allocation means that there are no restrictions to the Fund s percentage holdings in any one investment category, except for those of inverse ETFs and the absolute notional value of short derivatives, which on aggregate is limited to 50% of NAV. An internal allocation of cash and cash equivalent will be maintained to ensure that the Fund is able to meet redemption requests without jeopardising the Fund s performance. Investment Strategy In pursuing the Fund s investment objective, the Manager will use investment strategies to access various return factors. These factors that include equity based factors, fixed income based factors, currency based factors, commodity based factors and derivative based factors among others, will be uncovered by employing diligent macro and micro research, valuation and security selection processes. The investment strategies may also employ event driven, arbitrage and macro-based strategies. The Fund takes an opportunistic approach to access returns across all available markets, sectors and investment instruments. It may take short positions in derivatives or use inverse ETFs to generate positive returns from an underlying investment that the Manager expects to decline in value. This highly flexible approach allows the Manager to shift allocations based on changing market conditions which may result in investing in a few or multiple markets and sectors to which it is not bound by any limits (except for inverse ETFs and absolute notional value of short derivatives, which in aggregate will not exceed 50% of the Fund s NAV). Derivatives may be used to increase income and returns or as a tool for risk management purposes such as hedging. The Fund may invest in securities and CIS of foreign markets where the regulatory authority is an ordinary or associate member of the IOSCO. Investment Process The Manager evaluates market conditions using top-down analysis, taking into consideration factors such as local and global macroeconomic trends, social political issues, fund flows and sector/industry analyses to determine their potential impact on markets. The insights from these analyses determine the choice of asset classes/investments and desired exposures. The Manager uses bottom-up analysis to identify individual investments within the chosen asset classes/sectors suitable for inclusion in the Fund. Prices of the investments under consideration will be evaluated to ensure the Fund does not overpay for those investments. Please refer below for the criteria used in analysing the securities. 8 Key Information Of The Fund

12 FUND INFORMATION (Continuation) INVESTMENT POLICY AND STRATEGY (Continuation) From the large number of equities available locally and overseas, the Manager conducts detailed research and applies various filters to identify those investments that are suitable for inclusion as the Fund s holdings. These filters include: Financial strength: Companies with cash flows that enable funding of their business operations or those with sound balance sheets or are in a position to borrow where the borrowings can be serviced. Sustainable competitive advantage: Factors such as having superior management culture, access to natural resources, possessing strong brands or patents. Experienced and capable management team: Such a team would have a medium to long-term track record of growing a business and are expected to continue with the track record. Good corporate governance: Companies that have independent directors and protect the rights of minority shareholders. In analysing fixed income securities, the following factors determine investment selection for the Fund: Credit quality: Selection of bonds focuses on business and financial risk at the issuer level. For inclusion in the Fund, the local bond issue must have at least a long-term RAM rating of A2 and minimum short-term RAM rating of P2 or their equivalents. Yield spread analysis: Yield spread is the difference in the rate of return between bonds usually of different credit quality. By tracking how particular patterns vary over time, the spread analysis provides an indication of the relative pricing of bonds. Liquidity and marketability of bonds: Liquidity and maturity profiling allows the Manager to determine the extent of liquidity risk and its commensurate returns. Liquidity risk is greater for thinly traded securities such as lower rated bonds, bonds that were part of a small issue or those sold by an infrequent issuer. Analysis of bond issues: The analysis is to identify specific/unique risk with regards to the structure of bonds by analysing bond agreements, terms and conditions of a bond issue and asset collateral (assets used in backing a bond issue). For ETFs, consideration is given to how well an ETF s performance mirror the index performance that it attempts to replicate. Fees charged by the ETF and liquidity are also taken into consideration. Invested CIS may be in-house managed funds. Otherwise, the performance track record, the credentials of the manager of the CIS and its investment team, liquidity and fees charged are factors to be considered before investing. 9 Key Information Of The Fund

13 FUND INFORMATION (Continuation) INVESTMENT POLICY AND STRATEGY (Continuation) Investment Strategy For Inverse ETFs From the extensive top-down and bottom-up analyses conducted (as described in the equity and fixed income segments above), the Manager would have identified markets or sectors that are overvalued and not suitable for inclusion as part of the equity or fixed income segment of the Fund. Where these markets or sectors are expected to decline in price, the Manager may look at purchasing inverse ETFs to generate returns for the Fund. An inverse ETF is a listed security that has the objective of tracking the daily performance of an index but whose performance is the opposite of the return of the index tracked. For example, if an inverse ETF tracks the S&P 500 Index, a 1% daily decline in the said index would see the inverse ETF gain by 1% (before any fees). The Fund may invest in inverse ETFs which track equity or fixed income indices. The investment period in an inverse ETF will be for the short term and holdings closely monitored with a view to exit should there be expectations of rebounds in the relevant indices/index tracked. In the selection of inverse ETFs, the Manager will take the following factors into consideration: Track record: Analysis will be made of how well an inverse ETF has met its objective, with an emphasis on the daily performance track record. Liquidity: An inverse ETF must be liquid, which will enable easy disposal by the Fund without adverse impact on market price when it no longer meet the Fund s objective. Manager of the inverse ETFs: An inverse ETF must be managed by a credible financial institution with at least three years of experience in managing inverse ETFs. No leveraged inverse ETFs: An inverse ETF generally attempts to replicate the return of the index tracked by -1X the return of the index. A leveraged inverse ETF has the objective to return multiples of the index, for example -2X and -3X. The Fund will not invest in leveraged inverse ETFs. MINIMUM AND MAXIMUM LEVELS OF ASSET ALLOCATION As the Fund can invest in all available classes of investments assessed to be suitable in realising the Fund s objectives, the minimum and maximum levels of investment in any one asset class or sector is 0% and 100% (of the Fund s NAV) respectively, except for inverse ETFs and short derivatives, which in aggregate, will not exceed 50% of the Fund s NAV. PRINCIPAL RISKS ASSOCIATED WITH THE FUND Please refer to pages 17 to 21. Timing of asset allocation, country and sector allocation risk Inverse ETF risk Country and/or foreign securities risk Market risk Currency risk ETF risk Liquidity risk Company specific risk Interest rate risk Credit risk Derivatives risk (which covers warrants, options and futures risks) 10 Key Information Of The Fund

14 FUND INFORMATION (Continuation) PERFORMANCE BENCHMARK Maybank 12-Month Fixed Deposit Rate % INVESTOR PROFILE Sophisticated investors who are seeking an actively managed portfolio with dynamic asset allocation, seeking access to global markets, seeking capital growth and have a medium to long-term investment horizon. PERMITTED INVESTMENTS Where permitted by the relevant authorities and consistent with the objective of the Fund, the Pacific ROAR Fund is permitted to invest in the following investments: Securities listed on the Bursa Malaysia and any other domestic market considered an eligible market; Securities issued by government and government-related agencies including Malaysian government securities, treasury bills, Bank Negara Malaysia certificates and government investment certificates; Malaysian currency balances in hand, Malaysian currency deposits with licensed financial institutions including negotiable certificates of deposit, bankers acceptance and placement of money at call with investments banks; and any other instrument capable of being converted into cash within such time pursuant to the requirement under the relevant laws; Cagamas bonds, unlisted loan stocks and corporate bonds that are either bank guaranteed or rated by RAM Holdings Berhad, Malaysian Rating Corporation Berhad or any other permitted rating agency; Private debt securities and bonds traded on the domestic market; Foreign securities traded in foreign markets under the rules of an eligible market; Units of in-house or other collective investment schemes, ETFs including inverse ETFs; Futures contracts traded in a futures market of an investible exchange; Warrants and options; Other derivatives; Unlisted securities which have been approved by the relevant regulatory authority for listing or quotation on an exchange and are offered directly to the Fund by the issuer; and Any other form of investments as may be agreed upon by the Manager and the Trustee from time to time. 11 Key Information Of The Fund

15 FUND INFORMATION (Continuation) INVESTMENT RESTRICTION Inverse ETFs And Short Derivatives The Fund s aggregate investments in inverse ETFs and the absolute notional value of short derivatives are limited to a maximum 50% of the Fund s NAV. BASES OF VALUATION OF THE FUND S INVESTMENTS Assets of the Fund should be valued in a fair and accurate manner at all times. Listed securities and equity-related securities will be valued based on the last done prices as at the close of the business day of the respective stock exchanges on the same calendar day. Please refer to page 22 for details on the valuation of NAV. However, if a valuation based on the market price does not represent the fair value of securities or equity-related securities, or no market price is available due to situations beyond the Manager s control or there is a suspension in the quotation of the securities for a period exceeding 14 days, or such other shorter period as agreed by the Trustee, then the securities shall be valued at fair value, as determined by the Manager, based on the methods approved by the Trustee after appropriate technical consultation; Other unlisted securities will be valued based on fair value as determined in good faith by the Manager; Unlisted local debt securities will be valued on a daily basis based on fair value prices quoted by a bond pricing agency (BPA) registered with the Securities Commission. If the Manager is of the view that the price quoted by the BPA for a specific bond differs from the market price by more than 20 basis points, the Manager may use the market price; In terms of a successful subscription to an Initial Public Offering (IPO), if any, the IPO securities will be valued at cost prior to their listing. These IPO securities will then be valued at their last done market price upon listing; Unlisted collective investment schemes will be valued based on the last published repurchase price; and Cash or deposits (current account or deposits) or investment accounts placed with banks and other financial institutions and bank bills are valued on a daily basis by reference to their nominal values and the accrued interest thereon. 12 Key Information Of The Fund

16 FEES AND CHARGES RELATED TO THE FUND The table below describes the fees and charges that you may DIRECTLY incur when you buy or redeem units of the Fund. Please note that normal banking charges are applicable to the investors. MAXIMUM SALES CHARGE The sales charge is a fee levied on the purchase of units of the Fund, and is used to pay for marketing, advertising and distribution expenses of the Fund. The sales charge is deducted upfront from the purchase amount, leaving only the net amount invested in the Fund. The sales charge is calculated based on the NAV per unit of the Fund as at the next valuation point after the original application is received and accepted by the cut-off time of 4.00 p.m. on any business day. The maximum rate of sales charge to be imposed by Pacific Mutual and its authorised distributor(s) is 5.50% of the Fund s NAV per unit. For illustration on the calculation of sales charges, please refer to pages 23 and 24. The following are our special group of investors: Staff of Pacific Mutual and Lion Global Investors Limited, and their immediate family members may purchase units of the Fund at the Fund s NAV per unit, without having to pay the sales charge. When investing directly with us, investors of our Saver s Plan package will enjoy a 0.25 percentage point lower sales charge from the normal sales charge imposed by us for each future monthly instalment with effect from the 25 th monthly instalment. The maximum sales charge to be imposed by all our authorised distributors as stated on page 30 for the Fund is listed as per abovementioned. Investors may negotiate for a lower sales charge. REDEMPTION CHARGE There is no redemption charge imposed on unitholders of the Fund. SWITCHING FEE There is no switching facility available for the Fund. TRANSFER FEE There is no transfer fee imposed on unitholders of the Fund. 13 Key Information Of The Fund

17 FEES AND CHARGES RELATED TO THE FUND (Continuation) The table below describes the fees and expenses that you may INDIRECTLY incur when you invest in the Fund. ANNUAL MANAGEMENT FEE The annual management fee is a fee charged for the ongoing portfolio management and administration of the Fund (e.g. to maintain unitholders' register, proper records of the Fund and to administer the investments). The annual management fee for the Fund is 1.75% per annum of the NAV of the Fund. The annual management fee is calculated based on the NAV of the Fund, accrued on a daily basis and is paid out of the Fund. The annual management fee is payable on a monthly basis. ANNUAL TRUSTEE FEE The annual trustee fee is a fee paid to the Trustee for the custodial management and administration of the Fund's assets (e.g. transaction settlement, custody and administration costs). The annual trustee fee for the Fund is 0.06% per annum of the NAV of the Fund (excluding foreign custodian fees and charges). The annual trustee fee is calculated based on the NAV of the Fund at the Fund's annual trustee fee rate, calculated and accrued on a daily basis and is paid out of the Fund. The annual trustee fee is payable on a monthly basis. OTHER EXPENSES Expenses directly related to the Fund are management fee, trustee fee and other administrative expenses (e.g. commission paid to brokers, auditor's fee, courier and handling charges, etc). The total annual expenses of the Fund are expressed as a percentage of the average NAV of the Fund for a financial year/period calculated on a daily basis. Other expenses, which are directly related and necessary to the business of the Fund, may be charged to the Fund. These will include (but are not limited to) the following: Commission or fees paid to brokers or dealers; fees and other expenses properly incurred by the auditor and tax agent; custodian fees (confined to foreign investments); taxes (including but not limited to GST) and other duties charged on the Fund by the government and other authorities; printing and postage expenses; and any other legitimate administration expenses or relevant professional fees approved by the Trustee. REBATES AND SOFT COMMISSION We will retain the soft commissions received from brokers for goods and services which are of demonstrable benefit to the unitholders and advisory services that assist in the decision-making process relating to the investment of the Fund such as research materials, data and quotation services, computer software, investment advisory services and investment related publications which are incidental to the investment management activities of the Fund. There are fees and charges involved and you are advised to consider them before investing in the Fund. All fees and charges payable to us and/or the Trustee are subject to any applicable taxes (including but not limited to GST) and/or duties as may be imposed by the government or other authorities from time to time. 14 Key Information Of The Fund

18 TRANSACTION INFORMATION MINIMUM INITIAL AND ADDITIONAL INVESTMENT Cash Plan You may invest by cash on a lump sum basis. The initial and additional investment must be a minimum of RM10,000 and RM5,000 respectively. Saver s Plan You may fix your own time frame for saving, starting with a minimum of five years and a monthly investment in multiples of RM1,000. You may activate your Saver's Plan anytime with an initial investment of two times the monthly investment amount. We have the discretion to accept a lower amount than that disclosed in the information memorandum as we deem fit. All amounts referred herein include the sales charge and GST on sales charge of the Fund. Investments made via our IUTA may be subject to their terms and conditions. MINIMUM REDEMPTION AMOUNT There is no minimum redemption amount. MINIMUM HOLDING AND REDEMPTION OF UNITS You can withdraw or redeem all or part of your units in the Fund, in writing, at any time provided the minimum number of units left in an account after the partial withdrawal is 500 units. If units in your account are less than the minimum holding after the redemption application is made, all units in your account will be redeemed automatically. SWITCHING FACILITY There is no switching facility available for the Fund. TRANSFER FACILITY Transfer facility is available for the Fund, free of charge. The transferee must be a sophisticated investor and provide the necessary declaration. The transfer form must be completed in the presence of a witness. For partial transfer, the minimum balance to be maintained in your unit trust account must be 500 units. 15 Key Information Of The Fund

19 OTHER INFORMATION INCOME DISTRIBUTION AND REINVESTMENT POLICY Subject to the Manager s discretion, distribution of income will be on an annual basis. Distribution of income is in the form of cash or units. When there are stock market corrections, bear markets or economic downturns, realised capital losses may outweigh realised gains, dividends and interest/profit sharing income received and thus result in no income distributions being possible. You may opt for income distributions to be paid out to you directly in cash by way of a distribution cheque. In the absence of written instructions to the contrary, distributions declared by the Fund will be automatically reinvested into additional units of the Fund based on the NAV per unit of the Fund on the fourth business day after the declaration of distributions at no cost. Distribution amounting to less than or equal to the amount of RM200 will be automatically reinvested on the fourth business day. Similarly, distribution cheques that are returned through mail will be reinvested based on the Fund s NAV per unit on the date we receive the returned mail. Income distributions are not guaranteed and may not be repeated. Distributions of income will only be made from realised gains or realised income derived from the investments of the Fund. DEED(S) OF THE FUND Master Deed: 20 November 2015 First Supplemental Master Deed: 18 April 2016 AVENUE FOR ADVICE You may contact our client relations personnel, any of our branches or authorised distributors as listed on page 30. For information concerning certain risk factors, which should be considered by prospective investors, see Risks commencing on page 17. Unit prices and distributions payable, if any, may go down as well as up. 16 Key Information Of The Fund

20 RISKS RISKS ASSOCIATED TO THE FUND Timing of asset allocation, country and sector allocation risk This is the risk that given prevailing economic and financial market conditions, the Manager of the Fund makes inappropriate asset allocation decisions between various asset categories, country and sector positions, potentially resulting in lower returns to the Fund. To mitigate such risk, the Manager conducts detailed fundamental macro research and analysis on financial market trends and keeps regular updates on them. Factors such as economic and political conditions, interest rate environment, valuations of markets, liquidity and investor sentiment are taken into account before making asset allocation decisions or changes. Inverse ETF risk The following are key risks of investing in inverse ETFs: Counterparty risk: The manager of an inverse ETF will employ various types of derivatives to replicate the inverse of an index return. An inverse ETF involves a legal contract with a counterparty (a financial institution) to pay the inverse ETF if the market declines and vice versa. The risk is the possibility of a financial institution not honouring the contract, although this is rare in normal economic and market conditions. The counterparty risk inherent in inverse ETFs will be mitigated by selecting inverse ETFs managed by financial companies/institutions with at least three (3) years of experience in managing inverse ETFs and managing inverse ETFs in volatile and falling markets would be a positive factor. The Manager will also use inverse ETFs as short-term tactical trading instruments where the investment period of inverse ETFs will be for the short term and holdings closely monitored with a view to exit should there be expectations of rebounds in the relevant indices/index tracked. Returns expectations risk: Inverse ETFs perform to expectations (or may exceed them) if markets are trending continuously downwards. However, in volatile markets with both up and down movements, they will not generate the expected potential returns due to reverse (daily) compounding. Due to this effect, the Manager may have a correct view of a falling market but generate gross returns less than the overall fall in the market. For example: Market % Movement Value Inverse ETF % Movement Value Day Day Day Day Day Day Day Day Day Day Day Day Day Day Day Day Overall Return: Days Overall Return: Days Before factoring in fees, an inverse ETF has due to market volatility generated a return of only +2.72% versus a fall of 3.26% in the index tracked, where the expectation was the return should have been close to +3.26%. 17 Risks

21 Capital loss risk (even where the declining trend is correctly identified): In extremely volatile markets, even where the Manager has correctly identified a fall in the market, inverse ETFs may still generate losses. For example, the market/index experiences large consecutive declines but experiences a significant rebound from the lows (but still an overall large decline): Market % Movement Value Inverse ETF % Movement Value Day Day Day Day Day Day Day Day Day Day Day Day Overall Return: Days Overall Return: Days In the above example, the market has declined by 4.97% and an inverse ETF tracking the index would be expected to generate +4.97% return, instead, the return was a loss of -6.66%. This is again the effects of reverse (daily) compounding. Country and/or foreign securities 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. Emerging markets may also have less developed procedures for custody, settlement, clearing and registration of securities transactions. Developed markets while not possessing similar levels of risks as emerging markets, may experience risks such as: changes in economic fundamentals, social and political stability; monetary policy and currency fluctuations. This risk may be mitigated by conducting thorough research on the respective markets, their regulatory framework, economics, 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. Market risk This risk refers to the possibility that an investment will lose value because of a general decline in financial markets caused by economic, political, social and/or other factors. This will result in a decline in the Fund s NAV. To mitigate this risk, the Manager of the Fund analyses and reviews economic, political and social conditions and keeps alert for situations which may adversely impact the value of investments of the Fund. Where necessary, allocations in affected investments will be disposed of (shifting to safer assets such as money market instruments and deposits) to reduce any losses to the Fund. Where appropriate, the Manager of the Fund will employ inverse ETFs to profit from such falling markets and/or use derivatives to position against capital losses. Currency risk As the investments of the Fund are denominated in currencies other than Malaysian Ringgit ( Ringgit ), any fluctuations in the exchange rate between the Ringgit and the currencies in which the investments are denominated may have an impact on the value of these investments. If the currencies in which the investments are denominated depreciate against the Ringgit, this will have an adverse effect on the NAV of the Fund (on the reverse, if the foreign currencies appreciate against the Ringgit, the Fund s NAV may increase). Any of such gains or losses arising from fluctuations in exchange rates may decrease or increase returns on investment in the Fund. This risk may be mitigated by reducing exposure to investments denominated in a currency that is expected to decline versus the Ringgit. 18 Risks

22 ETF risk Exchange traded funds ( ETFs ) are collective investment schemes designed to track a particular index or portfolio of securities. The following are the key risks of investing in ETFs: Tracking error An ETF is in general, designed to track or replicate the performance of a particular index. However, exact replication may not be possible owing to factors such as: i) fees and expenses of the ETF; ii) foreign exchange movements; iii) the ETF may not have been constructed to be exactly the same as the index, thus resulting in differences between the weighting of securities in the index and the ETF. This is due to the fact that certain securities in the index may have been omitted from the ETF s holdings or securities not in the index may be included in the ETF. Consequently, there is some divergence between the return of the ETF and the index; and iv) corporate actions such as rights issues. ETFs trading at a premium or discount ETFs are traded on both a primary (not a publicly traded market and only via participating dealers) and secondary market (generally on a stock exchange). While the NAV of an ETF is a key factor influencing the price of the ETF, it is also determined by the investors supply and demand on the secondary market. Thus, an ETF may be traded on the secondary market at a price that is a discount or a premium to the net asset value (NAV) of the ETF portfolio. This discrepancy may be accentuated in uncertain or volatile financial/economic conditions. The ETF tracking error risk is mitigated by the unit trust fund manager by selecting ETFs which have a lower tracking error to reduce the possibility of larger divergence of returns versus the index tracked. The criteria used in determining ETFs with lower tracking error are the expense ratios of ETFs and the extent to which an ETF tracks its index. The second risk is reduced by focusing on ETFs that generally trade at narrower premiums or discounts to the NAV to ensure that no excessive premiums are paid upon purchase and the ETFs are not sold at significant discounts upon exit. Liquidity risk Liquidity risk refers to the ease of liquidating an investment depending on the asset s volume traded in the market. If the Fund holds investments that are illiquid or are difficult to dispose of, the value of the Fund will be negatively affected when it has to sell such investments at unfavourable prices. The Fund will invest in investments that are highly liquid (easily bought and sold in the market) and this allows the Fund to meet sizeable redemptions without jeopardising returns. Company specific risk 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 security price of that company and thus the value of the Fund's investments. This risk is mitigated by diversification in a portfolio comprised of securities of many companies. In addition, this risk may occur when an investee company's business or fundamentals deteriorate or if there is a change in management policy resulting in a downward revision or even removal of the company's dividend policy. Such events may result in an overall decrease in dividend income received by the Fund and possible capital loss due to a drop in the security price of a company that cuts or omits its dividend payments. This risk may be mitigated by investing mainly in companies with a consistent historical record of paying dividends, strong cash flow, or operating in fairly stable industries. Interest rate risk Interest rate risk refers to the impact of interest rate changes on the valuation of fixed income investments. When interest rates rise, prices of the fixed income investments generally decline and this may lower the market value of the Fund s investments. The reverse may apply when interest rates fall. This risk will be mitigated by managing the duration structure of the Fund s fixed income investments. Credit risk Credit risk relates to the creditworthiness of the issuers of fixed income instruments and their expected ability to make timely payment of profits and/or principal. Any adverse situations faced by an issuer may impact the value as well as liquidity of fixed income instruments issued. In the case of fixed income instruments assigned a rating by a credit rating agency, this may lead to a lowering of the credit rating of the instrument. 19 Risks

23 Derivatives risk Risks arising from derivatives in the form of price risk of potential losses from the changes in the value of the underlying asset and/or default risk resulting from counterparties not delivering on their obligations. Warrants and options risk Warrants and options are a leveraged form of investment. A movement in the prices of the equity securities of the warrants and options will generally result in a larger movement in the prices of the warrants and options themselves, that is, higher volatility. The geared effect implies substantial outperformance when the prices of equity securities rise. Conversely, in a falling market, warrants and options can lose a substantial amount of their values, far more than equity securities. Warrants and options have a limited life and will depreciate in value as they approach their maturity date. If a warrant s exercise price is above the share price at any time during its remaining subscription period, the warrant is effectively out of the money. The higher the exercise price is above the reference share price, the lower is the warrant s value. Warrants that are not exercised at maturity become worthless. Warrants and options do not participate in dividends or cash flows that accrue from the underlying equity securities. This risk may be mitigated by conducting extensive fundamental analysis of the warrants equity securities to ensure their viability as an investment for a fund. The percentage allocation of warrants held by the Fund will generally mirror the allocation of the equity securities, that is, higher when there is an anticipated market rise and vice versa. Privately negotiated OTC options that are not traded on an exchange or through a broker, are subject to the credit or counterparty risk of the issuer of the option. The risk level will be dependent on the financial standing and creditworthiness of the party issuing the options and their ability to fulfil the terms of the options contract. Thus, any default by the issuer will have an adverse impact on the Fund s NAV. To mitigate this risk, only OTC options offered by issuers such as financial institutions with at least a credit rating of AA by RAM Rating Services Berhad or A by Standard & Poor s or their equivalent by any other recognised rating agency will be considered. Should the counterparty s credit rating fall below the minimum as stated subsequent to entering into an OTC option, all option positions with the counterparty will be unwound within three months of the credit rating downgrade, subject to the unwinding of the position being in the best interests of the Fund. Futures risk As futures are conducted on an initial margin basis, a relatively small price movement in a futures contract may result in an immediate and substantial loss (or gain) for the Fund. Adverse price movements can create additional losses over and above the initial futures contract costs. Futures contracts can play a part in reducing the risk of the Fund's investment portfolio by providing a hedge against shorter-term volatility of financial markets. However, futures carry certain additional risks which if not properly managed can result in significant losses or underperformance. These include: Futures liquidity risk This category of risk includes: - Risk that fair price or firm bid cannot be obtained from a market counterpart; - Risk that funds are unable to unwind illiquid positions; and - Market price stability affecting funds' ability to meet margin payments. Gearing risk Futures contracts may involve a high degree of "gearing" or "leverage". This means that a small movement in the price of the underlying asset may have a very large magnifying effect in the price of the futures contracts, in both an upward or a downward direction. Mismatch risk Risk that arises when the terms of underlying investments and the instrument used to hedge its risks do not match. Such mismatches could be due to: - Mismatch of derivative parcel size (or multiples of this) versus actual physical portion. - Mismatch of maturity, e.g. 3-month Kuala Lumpur Interbank Offer Rate (KLIBOR) interest rates futures contract versus 1-year bond holding. - Mismatch of component constituting an index, e.g. FTSE Bursa Malaysia KLCI Index (FBM KLCI) versus actual equity portfolio of the fund. 20 Risks