2015/2016 MASTER PROSPECTUS

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3 2015/2016 MASTER PROSPECTUS Responsibility Statement This Master Prospectus has been reviewed and approved by the directors of and they collectively and individually accept full responsibility for the accuracy of the information. Having made all reasonable inquiries, they confirm to the best of their knowledge and belief, there are no false or misleading statements, or omission of other facts which would make any statement in this Master Prospectus false or misleading. Statements of Disclaimer The Securities Commission Malaysia has authorized the Funds and a copy of this Master Prospectus has been registered with the Securities Commission Malaysia. The authorization of the Funds, and the registration of this Master Prospectus, should not be taken to indicate that the Securities Commission Malaysia recommends the said Funds or assumes responsibility for the correctness of any statement made, opinion expressed or report contained in this Master Prospectus. The Securities Commission Malaysia is not liable for any non-disclosure on the part of PMB Investment Berhad responsible for the said Funds and takes no responsibility for the contents in this Master Prospectus. The Securities Commission Malaysia makes no representation on the accuracy or completeness of this Master Prospectus, and expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of its contents. INVESTORS SHOULD RELY ON THEIR OWN EVALUATION TO ASSESS THE MERITS AND RISKS OF THE INVESTMENT. IF INVESTORS ARE UNABLE TO MAKE THEIR OWN EVALUATION, THEY ARE ADVISED TO CONSULT PROFESSIONAL ADVISERS. No units of the Funds will be issued or sold on the basis of this Master Prospectus later than one (1) year after the date of this Master Prospectus. Investors should note that they may seek recourse under the Capital Markets and Services Act 2007 for breaches of securities laws and regulations including any statement in this Master Prospectus that is false, misleading, or from which there is a material omission; or for any misleading or deceptive act in relation to this Master Prospectus or the conduct of any other person in relation to the Funds. PMB Dana Al-Aiman, PMB Dana Mutiara, PMB Dana Bestari, PMB Shariah Aggressive Fund, PMB Shariah Growth Fund, PMB Shariah Mid-Cap Fund, PMB Shariah Index Fund, PMB Shariah Premier Fund, PMB Shariah Dividend Fund, PMB Shariah TNB Employees Fund, PMB Shariah Tactical Fund, PMB Shariah Balanced Fund and PMB Shariah Cash Management Fund have been certified as being Shariah-compliant by the Shariah Adviser appointed for the Funds. ii

4 MASTER PROSPECTUS 2016/2017 CONTENTS 1. GLOSSARY OF TERMS/ABBREVIATIONS CORPORATE DIRECTORY KEY DATA / INFORMATION SUMMARY FUND INFORMATION FEES, CHARGES AND EXPENSES ADDITIONAL INFORMATION RISK FACTORS GENERAL RISKS OF INVESTING IN UNIT TRUST FUND SPECIFIC RISKS ASSOCIATED WITH INVESTMENT PORTFOLIOS THE FUNDS EQUITY FUNDS PMB Dana Al-Aiman PMB Dana Mutiara PMB Dana Bestari PMB Shariah Aggressive Fund PMB Shariah Growth Fund PMB Shariah Mid-Cap Fund PMB Shariah Index Fund PMB Shariah Premier Fund PMB Shariah Dividend Fund PMB Shariah TNB Employees Fund MIXED ASSET FUND PMB Shariah Tactical Fund BALANCED FUND PMB Shariah Balanced Fund MONEY MARKET FUND PMB Shariah Cash Management Fund SHARIAH-COMPLIANT AND SHARIAH APPROVAL PROCESS TEMPORARY DEFENSIVE POSITION 60 iii

5 2015/2016 MASTER PROSPECTUS 5.7 RISK MANAGEMENT STRATEGIES PERMITTED INVESTMENTS INVESTMENT RESTRICTIONS AND LIMITS VALUATION OF INVESTMENTS POLICY ON GEARING FUND PERFORMANCE EQUITY FUNDS PMB Dana Al-Aiman PMB Dana Mutiara PMB Dana Bestari PMB Shariah Aggressive Fund PMB Shariah Growth Fund PMB Shariah Mid-Cap Fund PMB Shariah Index Fund PMB Shariah Premier Fund PMB Shariah Dividend Fund PMB Shariah TNB Employees Fund MIXED ASSET FUND PMB Shariah Tactical Fund BALANCED FUND PMB Shariah Balanced Fund MONEY MARKET FUND PMB Shariah Cash Management Fund HISTORICAL FINANCIAL HIGHLIGHTS EQUITY FUNDS PMB Dana Al-Aiman PMB Dana Mutiara PMB Dana Bestari PMB Shariah Aggressive Fund PMB Shariah Growth Fund PMB Shariah Mid-Cap Fund 112 iv

6 MASTER PROSPECTUS 2016/ PMB Shariah Index Fund PMB Shariah Premier Fund PMB Shariah Dividend Fund PMB Shariah TNB Employees Fund MIXED ASSET FUND PMB Shariah Tactical Fund BALANCED FUND PMB Shariah Balanced Fund MONEY MARKET FUND PMB Shariah Cash Management Fund TOTAL ANNUAL EXPENSES MANAGEMENT EXPENSES RATIO (MER) FEES, CHARGES AND EXPENSES CHARGES FEES EXPENSES REBATE AND COMMISSION TRANSACTION INFORMATION TRANSACTION DETAILS PAYMENT METHODS COOLING-OFF POLICY REPURCHASING/REDEEMING AN INVESTMENT CHANNELS TO PURCHASE AND REDEEM UNITS SWITCHING BETWEEN FUNDS TRANSFER OF UNITS A QUICK GUIDE ON HOW TO BUY, SELL, SWITCH AND TRANSFER INCOME DISTRIBUTION AND REINVESTMENT POLICIES DETERMINATION OF PRICE MANAGEMENT OF THE FUNDS THE MANAGER S PROFILE 135 v

7 2015/2016 MASTER PROSPECTUS 10.2 BOARD OF DIRECTORS MANAGEMENT TEAM SUMMARY OF FINANCIAL POSITION ROLES, DUTIES AND RESPONSIBILITIES OF THE MANAGEMENT COMPANY 10.6 MANAGER S DELEGATE MATERIAL LITIGATION AND ARBITRATION INVESTMENT COMMITTEE SHARIAH ADVISER OF THE FUNDS DESIGNATED FUND MANAGERS THE TRUSTEE OF THE FUNDS AMANAHRAYA TRUSTEES BERHAD CIMB ISLAMIC TRUSTEE BERHAD TRUSTEE S STATEMENT OF RESPONSIBILITY ROLES, DUTIES AND RESPONSIBILITIES OF THE TRUSTEE TRUSTEE S DECLARATION TRUSTEE S OBLIGATION SALIENT TERMS OF THE DEED RIGHTS AND LIABILITIES OF A UNIT HOLDER FEES AND CHARGES PERMITTED EXPENSES REMOVAL, REPLACEMENT AND RETIREMENT OF THE MANAGEMENT COMPANY AND TRUSTEE 12.5 TERMINATION OF THE FUND UNIT HOLDERS MEETING CONFLICT OF INTEREST TAXATION OF THE FUNDS ADDITIONAL INFORMATION ADDITIONAL INFORMATION vi 15.1 UPDATES ON THE FUNDS PRE-INVESTMENT FORM (PIF) SUITABILITY ASSESSMENT 161

8 MASTER PROSPECTUS 2016/ INVESTOR RELATION COMPLAINTS SECURITIES INDUSTRY DISPUTE RESOLUTION CENTRE (SIDREC) ANTI-MONEY LAUNDERING AND ANTI-TERRORISM FINANCING (AML/CFT) POLICIES 15.8 PRIVACY NOTICE UNDER PERSONAL DATA PROTECTION ACT GOODS AND SERVICES TAX (GST) FOREIGN ACCOUNT TAX COMPLIANCE ACT (FATCA) ZAKAT AUDITORS OF THE FUND PLEDGING OF UNITS AS COLLATERAL BORROWING TO PURCHASE UNITS PERIOD OF THE FUND LIST OF DISTRIBUTION CHANNELS STATEMENT OF CONSENT DOCUMENTS AVAILABLE FOR INSPECTION APPENDICES 168 1) MASTER APPLICATION FORM 2) INVESTMENT REQUEST FORM vii

9 MASTER PROSPECTUS 2016/ GLOSSARY OF TERMS/ABBREVIATIONS In this Master Prospectus, except when the context otherwise requires, the following words and expressions shall bear the following meanings: Act ANGKASA application ART BIMBSEC BNM Bursa Malaysia business day buying price or repurchase price of a unit CIS CITB cut-off time Deed designated fund manager Distribution Date Capital Markets and Services Act 2007 (as amended from time to time); Angkatan Koperasi Kebangsaan Malaysia Berhad; Application or request to buy unit(s) by an investor or a unit holder; AmanahRaya Trustees Berhad; BIMB Securities Sdn Bhd; Bank Negara Malaysia; Malaysia s stock exchange managed by Bursa Malaysia Berhad; A day on which the Bursa Malaysia is open for dealings; The price equivalent to the NAV per unit of the respective Funds as at the next valuation point after the request for repurchase is received by the Manager; Collective Investment Scheme refers to an arrangement where- a) it is made for the purpose, or having the effect, of providing facilities for persons to participate in or receive profits or income arising from the acquisition, holding, management or disposal of securities, derivatives or any other property (referred to as "scheme s assets ) or sums paid out of such profits or income; b) the persons who participate in the arrangements do not have day-to-day control over the management of the scheme s assets; and c) the scheme s assets are managed by an entity that is responsible for the management of the scheme s assets and is approved/authorized/licensed by a relevant regulator to conduct fund management activities; and includes among others unit trust funds, real estate investment trusts, exchange-traded funds and closed-end funds; CIMB Islamic Trustee Berhad; The time by which requests for unit purchases or redemptions by investors are accepted each day up to the unit trust fund s dealing cutoff time and are processed using the same day-end s NAV per unit prices; The principal and the supplemental deeds of the relevant Fund(s) made between the Manager and the respective Trustee; A Capital Markets Services Representative s Licence (CMSRL) holder who is responsible for the fund management of the respective Funds; The date on which the cash distribution of the relevant Funds, or unit distribution in lieu of the cash, is made or scheduled to be made; 1

10 2016/2017 MASTER PROSPECTUS dividend yield Eligible Market EPF MIS equity related securities FBM 100 FBM EMAS FBM KLCI FBMSHA FIMM The amount of a company's annual dividend expressed as a percentage of the current price of the share of that company; Means a market that- a) is regulated by a regulatory authority; b) operates regularly; c) is open to the public; and d) has adequate liquidity for the purposes of the fund in question. Employees Provident Fund Members Investment Scheme; Warrants, rights and/or irredeemable unsecured loan stocks (ICULS); FTSE Bursa Malaysia Top 100 Index; FTSE Bursa Malaysia EMAS Index. FBM EMAS comprises the constituents of the FTSE Bursa Malaysia Top 100 Index and FTSE Bursa Malaysia Small Cap Index (FBM Small Cap). FBM Small Cap comprises those eligible companies within the top 98% of the Bursa Malaysia Main Market excluding constituents of the FTSE Bursa Malaysia Top 100 Index; FTSE Bursa Malaysia KLCI; FTSE Bursa Malaysia EMAS Shariah Index; Federation of Investment Managers Malaysia; financial institution a) If the institution is in Malaysia (i) licensed bank; (ii) licensed investment bank; or (iii) licensed Islamic bank; b) if the institution is outside Malaysia, any institution that is licensed/registered/approved/authorised by the relevant banking regulator to provide financial services; forward pricing Funds Guidelines Investor or Unit Holder Islamic money market instruments Islamic deposit placements The determination of the unit price based on the NAV per unit of the Fund as at the next valuation point after a request for sale or repurchase of units is received; The unit trust schemes comprised in this Master Prospectus and the word Fund shall refer to any one of such schemes; Guidelines on Unit Trust Funds issued by the SC, as amended from time to time; The person registered for the time being as a holder of units in the Fund(s) in accordance with the provisions of the Deeds; Financial instruments with liquidity and near term maturity, issued under the Shariah principles, that are tradeable, such as commercial papers, banker s acceptance and negotiable certificate of deposit; Money placed with financial institutions for an agreed period under the Shariah principles which are Islamic Negotiable Instruments (INI), General Investment Accounts (GIA) or Special Investment Accounts (SIA); 2

11 MASTER PROSPECTUS 2016/2017 IUTA KLCI KLIRR KLSI long term MER Manager or We or us MARA MARC medium term NAV NAV per unit near term PMB PMB Al-Aiman PMB Bestari PMB Investment PMB Mutiara PMB SAF PMB SBF PMB SCMF PMB SDF PMB SGF PMB SIF PMB SMCF PMB SPF PMB STEF PMB STF Institutional Unit Trust Adviser, which is an institution, a corporation or an organization registered with the FIMM in accordance with FIMM s Guidelines for Registration of Institutional Unit Trust Adviser for the marketing and distribution of unit trusts; Kuala Lumpur Composite Index; Kuala Lumpur Islamic Reference Rates; Kuala Lumpur Shariah Index; A period of more than 5 years; Management Expense Ratio refers to the ratio of the sum of fees and the recovered expenses of a unit trust fund to the average value of a unit trust fund calculated on a daily basis; ; Majlis Amanah Rakyat; Malaysian Rating Corporation Berhad; A period of between 3 and 5 years; Net Asset Value refers to the value of a unit trust fund which is determined by deducting the value of all the fund s liabilities from the value of all the fund s assets, at the valuation point, except that, for the purpose of computing the annual management fee and the annual trustee fee, the NAV of the fund should be inclusive (that is, before any deduction) of the management fee and the trustee fee for the relevant day; The NAV of a unit trust fund divided by the number of units in circulation at the valuation point; A period of less than 1 year; Pelaburan MARA Berhad; PMB Dana Al-Aiman; PMB Dana Bestari; ; PMB Dana Mutiara; PMB Shariah Aggressive Fund; PMB Shariah Balanced Fund; PMB Shariah Cash Management Fund; PMB Shariah Dividend Fund; PMB Shariah Growth Fund; PMB Shariah Index Fund; PMB Shariah Mid-Cap Fund; PMB Shariah Premier Fund; PMB Shariah TNB Employees Fund; PMB Shariah Tactical Fund; 3

12 2016/2017 MASTER PROSPECTUS PTR RAM redemption or repurchase repurchase price or buying price of a unit RM SAC SC securities selling price of a unit Shariah Shariah Adviser Shariah-compliant securities short term SPR structured products subscribing price of a unit Portfolio Turnover Ratio refers to the ratio of the average sum of acquisitions and disposals of a Fund for the year to the average value of the Fund for the year calculated on a daily basis. The Annual Portfolio Turnover Ratio will indicate to the investor whether the Fund buys and sells securities frequently or whether it takes a longer term approach to investment management. A portfolio turnover ratio of 1 time means that the Fund has been turned over once for that particular year; RAM Rating Services Berhad; The repurchase by the Manager of all or part of the units owned by the Unit Holder; The price equivalent to the NAV per unit of the respective Funds as at the next valuation point after the request for repurchase is received by the Manager; Ringgit Malaysia; Shariah Advisory Council of the SC; Securities Commission Malaysia, established under the Securities Commission Act, 1993; Has the same definition according to the Capital Markets and Services Act 2007 (as amended from time to time); The price equivalent to the NAV per unit of a unit trust fund as at the next valuation point after the application for units is received by the Manager; Islamic laws, originating from the Qur`an (the holy book of Islam), and its practices and explanations rendered by the Prophet Muhammad (peace be upon him) and ijtihad of ulama (personal effort by qualified Shariah scholars to determine the true ruling of the divine law on matters whose revelations are not explicit); The Shariah adviser appointed for the Funds; The investment portfolio of the Fund comprises securities that have been classified as Shariah-compliant by the SAC. For securities that have yet to be certified by the SAC, the Shariah Adviser of the Fund will determine whether or not the securities are Shariah-compliant for investment by the Fund; A period of between 1 and 3 years; Single Pricing Regime refers to a policy or system in which the creation, cancellation, selling and repurchase prices for units are the NAV per unit of a unit trust fund(s). The actual and total amount of these prices paid by the investors then, depend on the rate of sales charges separately imposed by different distribution channels; Any investment product that falls within the definition of securities and which derives its value by reference to the price or value of an underlying reference; The price payable by an investor or a unit holder of the Fund for the purchase of a unit of a Fund; 4

13 MASTER PROSPECTUS 2016/2017 sukuk Trustee UiTM unit unit price Unit Holder or Investor units in circulation Unit Trust Consultant or UTC US person(s) certificates of equal value which evidence undivided ownership or investment in the assets using Shariah principles and concepts endorsed by the SAC; The trustee appointed for the Funds; Universiti Teknologi MARA; A unit of a unit trust fund that represents a unit holder s interest; The price at which a unit holder buys or sells units at NAV per unit; The person registered for the time being as a holder of units in the Fund(s) in accordance with the provisions of the Deeds; Total number of units created and fully paid for and which has not been cancelled; An individual unit trust adviser registered with FiMM; and Refers to:- a) a citizen of United States of America (US); b) an individual lawfully admitted for permanent residence of the US; c) an unincorporated association with a substantial number of members who are citizens of the US or are individuals lawfully admitted for permanent residence of the US; or d) a corporation incorporated in the US. 5

14 2016/2017 MASTER PROSPECTUS 2. CORPORATE DIRECTORY Manager Registered Office Business Office Manager s Delegate Registered Office Business Office ( D) Suite C-5-4, Wisma Goshen, Plaza Pantai, Jalan Pantai Baharu Kuala Lumpur Level 20, 1 Sentral Jalan Rakyat, Kuala Lumpur Sentral Kuala Lumpur Tel: (03) Fax: (03) Website: pmbinvestment.com.my investorrelation@pelaburanmara.com.my Pelaburan MARA Berhad (7240-P) Suite C-5-4, Wisma Goshen, Plaza Pantai, Jalan Pantai Baharu Kuala Lumpur Level 20, 1 Sentral Jalan Rakyat, Kuala Lumpur Sentral Kuala Lumpur Tel: (03) Fax: (03) Website: pelaburanmara.com.my Board of Directors Datuk (Dr.) Zamani bin Md Noor Dato Sri Haji Abd Rahim bin Haji Abdul Professor Dr. Faridah binti Haji Hassan Haji Mansoor bin Ahmad Dato Mohamad Safie bin Haji Asnawi Nik Mohamed Zaki bin Nik Yusoff Ahmad Nazim bin Abd Rahman Ameer Ali bin Vali Mohamed Independent/Chairman Independent Independent Independent Independent Independent Non-Independent Non-Independent/Chief Executive Officer Members of Investment Committee Company Secretary Business Address Shariah adviser for the Manager Haji Mansoor bin Ahmad Nik Mohamed Zaki bin Nik Yusoff Professor Dr. Mohamed Aslam bin Mohamed Haneef Ahmad Nazim bin Abd Rahman Shahrizat binti Othman (MAICSA No ) AAJ Management Services Sdn Bhd ( T) Suite C-5-4, Wisma Goshen Plaza Pantai, Jalan Pantai Baharu Kuala Lumpur Tel: (03) Fax: (03) Amanie Advisors Sdn Bhd ( H) Level 33, Menara Binjai No.2, Jalan Binjai, Off Jalan Ampang Kuala Lumpur Tel: (03) Fax: (03) Independent/Chairman Independent Independent Non-Independent 6

15 MASTER PROSPECTUS 2016/2017 Shariah Adviser for the Funds Trustee Registered Office Business Office Trustee Registered Office Business Office CITB Trustee s Delegate Registered Office Business Office BIMB Securities Sdn Bhd ( X) 32 nd Floor, Menara Multi-Purpose, Capital Square No.8, Jalan Munshi Abdullah Kuala Lumpur Tel: (03) Fax: (03) AmanahRaya Trustees Berhad ( T) Tingkat 11, Wisma AmanahRaya No. 2, Jalan Ampang Kuala Lumpur Tingkat 2, Wisma AmanahRaya II No. 21, Jalan Melaka Kuala Lumpur Tel: (03) /5129 Fax: (03) Website: CIMB Islamic Trustee Berhad ( M) Level 13, Menara CIMB, Jalan Stesen Sentral 2, Kuala Lumpur Sentral, Kuala Lumpur Tel : (03) Fax: (03) Website: Level 21, Menara CIMB Jalan Stesen Sentral 2, Kuala Lumpur Sentral, Kuala Lumpur Tel: (03) Fax: (03) CIMB Bank Berhad (13491-P) Level 13, Menara CIMB Jalan Stesen Sentral 2 Kuala Lumpur Sentral Kuala Lumpur Tel: (03) Fax: (03) Website: Level 21, Menara CIMB Jalan Stesen Sentral 2 Kuala Lumpur Sentral Kuala Lumpur Tel: (03) Fax: (03) Auditors Messr. Jamal, Amin & Partners (AF 1067) No.60-2B, 2nd Floor, Jalan 2/23A, Off Jalan Genting Klang, Taman Danau Kota, Setapak, Kuala Lumpur Tel: (03) Fax: (03)

16 2016/2017 MASTER PROSPECTUS Solicitors Tax Adviser Messrs. M.K. Chen & Leong Suite B Plaza Mont Kiara No 2, Jalan Kiara, Mont Kiara Kuala Lumpur Tel: (03) /7382 Fax: (03) Ahmad Abdullah & Goh (AF0381) Suite 701, Wisma Hangsam Jalan Hang Lekir Kuala Lumpur Tel: (03) Fax: (03) Principal Bankers 1) CIMB Islamic Bank Berhad ( H) Ground Floor, Wisma Genting No. 28, Jalan Sultan Ismail Kuala Lumpur Tel: (03) Fax: (03) ) Public Islamic Bank Berhad (6463-H) Tiong Nam Branch Level 1 & 2, Wisma Public Bank 300, Jalan Raja Laut Kuala Lumpur Tel: (03) Fax : (03) FIMM Federation of Investment Managers Malaysia ( P) , 6th Floor, Wisma Tune, No. 19, Lorong Dungun, Damansara Heights, Kuala Lumpur Tel: (03) Fax: (03) Website: Regional Offices Please refer to the directory of distribution channels in Section

17 MASTER PROSPECTUS 2016/ KEY DATA / INFORMATION SUMMARY This section is only a summary of the salient information about the Funds and investors should read and understand the Master Prospectus in whole before making investment decisions. 3.1 FUND INFORMATION NAME Category / Type Objective Investment Strategy Asset Allocation PMB DANA AL-AIMAN Equity (Shariah) / Growth & Income The objective of the Fund is to provide investors with steady return and to achieve capital growth in the medium to long term by investing in equities and fixed income securities that conform to the Shariah principles. The Fund shall invest primarily in a diversified portfolio of Shariahcompliant equity and equity-related securities of public listed companies in Bursa Malaysia with growth prospects and/or having forecast dividend yield of 3% per annum or above. The Fund shall invest between 70% and 99.5% of its NAV in Shariahcompliant equity and equity-related securities. The balance will be invested in Islamic money market instruments, Islamic deposit placements, sukuk and/or other permitted investments. Performance Benchmark FBMSHA Principal Risks Equity market risk Stock specific risk Shariah status reclassification risk Dividend policy risk Investor Profile Distribution Policy Financial Year End Trustee Shariah Adviser The Fund is suitable for investors who: have a moderate risk tolerance level; have a medium to long term investment horizon; prefer a portfolio that conforms to Shariah principles; and seek for steady income for short term and a capital growth for long term. The distribution (if any) is annual, subject to the availability of income for the financial period. 31 May ART BIMBSEC You may refer the detailed information of the Fund in Section

18 2016/2017 MASTER PROSPECTUS NAME Category / Type Objective Investment Strategy Asset Allocation PMB DANA MUTIARA Equity (Shariah) / Growth & Income The objective of the Fund is to provide investors with steady return and to achieve capital growth in the medium to long term by investing in equities and fixed income securities that conform to the Shariah principles. The Fund shall invest primarily in a diversified portfolio of Shariahcompliant equity and equity-related securities of public listed companies in Bursa Malaysia with growth prospects and/or having forecast dividend yield of 3% per annum or above. The Fund shall invest between 70% and 99.5% of its NAV in Shariahcompliant equity and equity-related securities. The balance will be invested in Islamic money market instruments, Islamic deposit placements, sukuk and/or other permitted investments. Performance Benchmark FBMSHA Principal Risks Equity market risk Stock specific risk Shariah status reclassification risk Dividend policy risk Investor Profile Distribution Policy Financial Year End Trustee Shariah Adviser The Fund is suitable for investors who: have a moderate risk tolerance level; have a medium to long term investment horizon; prefer a fund that conforms to Shariah principles; seek for steady income for short term and a capital growth for long term; and are women investors. The distribution (if any) is annual, subject to the availability of income for the financial period. 30 June ART BIMBSEC You may refer the detailed information of the Fund in Section

19 MASTER PROSPECTUS 2016/2017 NAME Category / Type Objective Investment Strategy Asset Allocation PMB DANA BESTARI Equity (Shariah) / Growth & Income The objective of the Fund is to provide investors with steady return and to achieve capital growth in the medium to long term by investing in equities and fixed income securities that conform to the Shariah principles. The Fund shall invest primarily in a diversified portfolio of Shariahcompliant equity and equity-related securities of public listed companies in Bursa Malaysia with growth prospects and/or having forecast dividend yield of 3% per annum or above. The Fund shall invest between 70% and 99.5% of its NAV in Shariahcompliant equity and equity-related securities. The balance will be invested in Islamic money market instruments, Islamic deposit placements, sukuk and/or other permitted investments. Performance Benchmark FBMSHA Principal Risks Equity market risk Stock specific risk Shariah status reclassification risk Dividend policy risk Investor Profile Distribution Policy Financial Year End Trustee Shariah Adviser The Fund is suitable for investors who: have a moderate risk tolerance; have a long term investment horizon; prefer a portfolio that conforms to Shariah principles; and seek investment to fund their children education in the future. The distribution (if any) is annual, subject to the availability of income for the financial period. 30 September ART BIMBSEC You may refer the detailed information of the Fund in Section

20 2016/2017 MASTER PROSPECTUS NAME Category / Type Objective Investment Strategy Asset Allocation PMB SHARIAH AGGRESSIVE FUND Equity (Shariah) / Growth The objective of the Fund is to provide investors with opportunity to earn high capital return over the medium to long term through active investments in Shariah approved securities listed on the Bursa Malaysia. The Fund shall invest primarily in a diversified portfolio among any of the top 300 Shariah-compliant companies in terms of market capitalization listed on Bursa Malaysia. The Fund has an aggressive investment approach where active trading strategy is adopted. The Fund shall invest between 80% and 99.5% of its NAV in Shariahcompliant equity and equity-related securities. The balance will be invested in Islamic money market instruments, Islamic deposit placements and/or other permitted investments. Performance Benchmark FBMSHA Principal Risks Equity market risk Stock specific risk Shariah status reclassification risk Investor Profile Distribution Policy Financial Year End Trustee Shariah Adviser The Fund is suitable for investors who: have a high risk tolerance level; have a medium to long term investment horizon; prefer a portfolio that conforms to Shariah principles; and seek for capital appreciation from an aggressive Shariah-compliant fund. The distribution is incidental. 31 July ART BIMBSEC You may refer the detailed information of the Fund in Section

21 MASTER PROSPECTUS 2016/2017 NAME Category / Type Objective Investment Strategy Asset Allocation PMB SHARIAH GROWTH FUND Equity (Shariah) / Growth The objective of the Fund is to provide investors with an opportunity to achieve capital growth over the medium to long term period by investing in Shariah-compliant securities. The Fund shall invest primarily in a diversified portfolio among any of the top 300 Shariah-compliant companies in terms of market capitalization listed on Bursa Malaysia that have potential, as analyzed by the Manager, for earnings per share growth of at least 10% per annum and at the same time have the potential, as analyzed by the Manager, to perform equal or better than the performance of the selected performance benchmark. The Fund shall invest between 80% and 99.5% of its NAV in Shariahcompliant equity and equity-related securities. The balance will be invested in Islamic money market instruments, Islamic deposit placements and/or other permitted investments. Performance Benchmark FBMSHA Principal Risks Equity market risk Stock specific risk Shariah status reclassification risk Investor Profile Distribution Policy The fund is suitable for investors who: have a high risk tolerance; have a medium to long term investment horizon; prefer a portfolio that conforms to Shariah principles; and seek capital appreciation from a Shariah-compliant fund that invests in growth stocks. The distribution is incidental. Financial Year End Trustee Shariah Adviser 28 February (29 Feb in a leap year) ART BIMBSEC You may refer the detailed information of the Fund in Section

22 2016/2017 MASTER PROSPECTUS NAME Category / Type Objective Investment Strategy Asset Allocation PMB SHARIAH MID-CAP FUND Equity (Shariah) / Growth The objective of the Fund is to achieve capital growth over the medium to long-term period by investing primarily in medium sized Shariah compliant companies in terms of market capitalization. The Fund shall invest primarily in a diversified portfolio of Shariahcompliant equity and equity-related securities of medium sized companies listed on Bursa Malaysia with market capitalization between RM1 billion and RM7 billion at the point of purchase. The Fund may invest up to 20% of its NAV in securities of Shariah-compliant companies listed on Bursa Malaysia with market capitalization in excess of RM7 billion. The Fund shall invest between 70% and 99.5% of its NAV in Shariahcompliant equity and equity-related securities. The balance will be invested in Islamic money market instruments, Islamic deposit placements, sukuk and/or other permitted investments. Performance Benchmark FBMSHA Principal Risks Equity market risk Stock specific risk Shariah status reclassification risk Investor Profile Distribution Policy Financial Year End Trustee Shariah Adviser The Fund is suitable for investors who: have a moderate to high risk tolerance level; have a medium to long term investment horizon; prefer a fund that conforms to the Shariah principles; and seek capital growth from Shariah-compliant fund that invests primarily in mid-cap stocks. The distribution is incidental. 30 April CITB BIMBSEC You may refer the detailed information of the Fund in Section

23 MASTER PROSPECTUS 2016/2017 NAME Category / Type Objective Investment Strategy Asset Allocation PMB SHARIAH INDEX FUND Equity (Shariah) / Index The objective of the Fund is to provide investors with the opportunity to gain reasonable return and capital growth in the medium to long term period by investing in Shariah-compliant securities whilst at the same time the Manager will attempt to match closely its performance with the performance of the FBMSHA. The Fund will invest primarily in the major stocks constituent of the FBMSHA. The Fund is a passively managed fund whereby the Manager constructs the Fund s investment portfolio based on an index sampling approach by investing not less than 60% of the Fund s NAV in the top 15 constituent stocks of the FBMSHA which represent approximately 63% of the FBMSHA s market capitalization (as at 29 February 2016). The balance may be invested in the next remaining constituent stocks of FBMSHA, and any other Shariah-compliant securities in Malaysia capital market, Islamic money market instruments and/or Islamic deposit placements. The Fund shall invest a minimum 90% of its NAV in equities with a minimum 60% among the top 15 constituent stocks of the FBMSHA. However equity investment in the Fund shall not exceed 99.5% of its NAV. The balance will be invested in Islamic money market instruments, Islamic deposit placement and/or other permitted investments. Performance Benchmark FBMSHA Principal Risks Equity market risk Stock specific risk Shariah status reclassification risk Risk of tracking error Investor Profile The Fund is suitable for investors who : have a moderate to high risk tolerance level; have a medium to long term investment horizon; prefer a fund that conforms to Shariah principles; and seek to have return close to the market performance. Distribution Policy Financial Year End Trustee Shariah Adviser The distribution is annual, subject to the total returns of the Fund, availability of income for the financial period, cash flow of the distribution, and stability and sustainability of the distribution of returns. 31 March ART BIMBSEC You may refer the detailed information of the Fund in Section

24 2016/2017 MASTER PROSPECTUS NAME Category / Type Objective Investment Strategy Asset Allocation PMB SHARIAH PREMIER FUND Equity (Shariah) / Growth The objective of the Fund is to provide opportunities for investors to achieve capital growth over the medium to long term period through investment in any of the 50 largest Shariah-compliant stocks by market capitalization (at the time of purchase) listed on the Bursa Malaysia. To achieve its objective, the Fund shall invest primarily in a diversified portfolio among any of the 50 largest Shariah-compliant stocks in terms of market capitalization (at the point of purchase) listed on Bursa Malaysia. The Fund may invest not more than 30% of its NAV in any of the next top 25 largest listed companies based on market capitalization. The Fund shall invest between 70% and up to 99.5% of its NAV in Shariahcompliant equity and equity-related securities. The balance will be invested in Islamic money market instruments, Islamic deposit placements, sukuk and/or other permitted investments. Performance Benchmark FBMSHA Principal Risks Equity market risk Stock specific risk Shariah status reclassification risk Investor Profile Distribution Policy Financial Year End Trustee Shariah Adviser The Fund is suitable for investors who: have a moderate risk tolerance level; have a medium to long term investment horizon; prefer a fund that conforms to Shariah principles; and seek capital growth from Shariah-compliant fund that invests in large capitalized stocks. The distribution is incidental. 31 August. ART BIMBSEC You may refer the detailed information of the Fund in Section

25 MASTER PROSPECTUS 2016/2017 NAME Category / Type Objective Investment Strategy Asset Allocation PMB SHARIAH DIVIDEND FUND Equity (Shariah) / Income To provide investors with an opportunity to gain consistent and stable income stream that is potentially higher than the average fixed deposit rates. The Fund shall invest primarily in a diversified portfolio of Shariahcompliant securities listed on Bursa Malaysia that offer or have the potential to declare dividend yields of at least 3% per annum. The Fund shall invest between 70% and 99.5% of its NAV in Shariahcompliant equity and equity-related securities in Bursa Malaysia. The balance will be invested in Islamic money market instruments, Islamic deposit placements, sukuk and/or other permitted investments. Performance Benchmark FBMSHA Principal Risks Investor Profile Distribution Policy Financial Year End Trustee Shariah Adviser Equity market risk Stock market risk Shariah status reclassification risk Dividend policy risk The Fund is suitable for investors who: have a moderate risk tolerance level; have a medium to long term investment horizon; prefer a fund that conforms to Shariah principles; and seek a regular and stable income stream from their investment. Income will be distributed annually, subject to the availability of income for the financial period. 31 March CITB BIMBSEC You may refer the detailed information of the Fund in Section

26 2016/2017 MASTER PROSPECTUS NAME Category / Type Objective Investment Strategy Asset Allocation PMB SHARIAH TNB EMPLOYEES FUND Equity (Shariah) / Growth & Income The objective of the Fund is to provide investors with an opportunity to gain steady income and to achieve capital growth over the medium to long term period by investing in a portfolio of investments that comply with Shariah principles. The Fund shall invest primarily in a diversified portfolio of Shariahcompliant equity and equity-related securities of public listed companies in Bursa Malaysia with growth prospects and/or having forecast dividend yield of 3% per annum or above. The Fund shall invest between 70% and 99.5% of its NAV in Shariahcompliant equity and equity-related securities. The balance will be invested in Islamic money market instruments, Islamic deposit placements, sukuk and/or other permitted investments. Performance Benchmark FBMSHA Principal Risks Eligibility Investor Profile Distribution Policy Financial Year End Trustee Shariah Adviser Equity market risk Stock specific risk Shariah status reclassification risk Dividend policy risk The following persons are eligible to apply and hold units in the Fund: Employees and retirees of Tenaga Nasional Berhad (TNB); Members of the Board of Directors of Tenaga Nasional Berhad (TNB); Any corporations, bodies, clubs, associations and/or cooperatives related to TNB and/or the employees or retirees of TNB, as may be recognized and/or approved by TNB. The Fund is suitable for investors who: have a moderate to high risk tolerance level; have a medium to long term investment horizon; prefer a fund that conforms to Shariah principles; and seek income and capital growth from a Shariah-compliant fund. The distribution is annually, subject to the availability of income for the financial period. 30 August CITB BIMBSEC You may refer the detailed information of the Fund in Section

27 MASTER PROSPECTUS 2016/2017 NAME Category / Type Objective Investment Strategy PMB SHARIAH TACTICAL FUND Mixed Asset (Shariah) / Growth & Income The objective of the Fund is to achieve capital growth over the medium to long term period by investing in a portfolio of investments that comply with Shariah principles. The Fund will adopt a tactical asset allocation strategy and has the flexibility to rebalance its allocation between the different asset classes of Shariah-compliant equity and equity-related securities listed on Bursa Malaysia, sukuk, Islamic money markets instruments, Islamic deposit placements and/or other permitted investments, depending on market conditions. Asset Allocation 0% - 100% of the Fund s NAV - Shariah-compliant equity and/or equity-related securities 0% - 100% of the Fund s NAV - Islamic money market instruments, Islamic deposit placements, sukuk and/or other permitted investments. Performance Benchmark Two times (2x) the performance of 1-Year Adjusted Average Rate of Kuala Lumpur Islamic Reference Rate (KLIRR) Principal Risks Equity market risk Stock specific risk Shariah status reclassification risk Profit/interest rate risk Credit/default risk Investor Profile Distribution Policy Financial Year End Trustee Shariah Adviser The Fund is suitable for investors who: have a moderate to high risk tolerance; have a medium to long term investment horizon; prefer a fund that conforms to Shariah principles; and seek income and capital growth from a tactical Shariah-compliant fund. The distribution (if any) is annual, subject to the availability of income for the financial period. 31 December ART BIMBSEC You may refer the detailed information of the Fund in Section

28 2016/2017 MASTER PROSPECTUS NAME Category / Type Objective Investment Strategy Asset Allocation PMB SHARIAH BALANCED FUND Balanced (Shariah) / Growth & Income The objective of the Fund is to provide investors with an opportunity to earn regular income and capital growth in the medium to long term through investment in Shariah-compliant securities. The Fund shall invest primarily in a diversified portfolio that includes Shariah-compliant stocks listed on Bursa Malaysia that have annual dividend distribution track record and/or prospects for capital growth, sukuk, Islamic money market instruments, Islamic deposit placements and/or other permitted investments. The Fund shall invest between 40% and 60% of its NAV in Shariahcompliant equity and equity-related securities listed on Bursa Malaysia. The balance will be invested in sukuk, Islamic money market instruments, Islamic deposit placements and/or other permitted investments. Performance Benchmark A combination of 50% FBMSHA and 50% 1-year Adjusted Average Rates of the Kuala Lumpur Islamic Reference Rates (KLIRR) Principal Risks Equity market risk Stock specific risk Shariah status reclassification risk Profit/interest rate risk Credit/default risk Investor Profile Distribution Policy Financial Year End Trustee Shariah Adviser The Fund is suitable for investors who: have a low to moderate risk tolerance level; have medium to long term investment horizon; prefer a fund that conforms to Shariah principles; and seek a regular annual income and capital growth in the medium to long term from an Islamic fund. The distribution (if any) is annual, subject to the availability of income for the financial period. 30 November ART BIMBSEC You may refer the detailed information of the Fund in Section

29 MASTER PROSPECTUS 2016/2017 NAME Category / Type Objective Investment Strategy Asset Allocation PMB SHARIAH CASH MANAGEMENT FUND Money Market (Shariah) / Income To provide investors with high degree of liquidity while maintaining capital stability through investments primarily in Shariah approved money market instruments and debt securities. The Fund seeks to achieve its objective by investing in near term Islamic money market instruments, Islamic deposit placements and/or sukuk in Malaysia that mature within 365 days. Nevertheless the Fund can invest up to 10% of its NAV in the Islamic money market instruments, sukuk and/or Islamic deposit placements with maturity period exceeding 365 days but not longer than 732 days. The Fund shall invest up to 100% of its NAV in Islamic money market instruments, sukuk and/or Islamic deposit placements. The Fund shall invest not less than 90% of its NAV in Islamic money market instruments, sukuk, or Islamic deposit placements having a maturity of not more than 365 days, while the balance can be invested Islamic money market instruments, sukuk and/or Islamic deposit placements maturing between more than 365 days to 732 days. Performance Benchmark BNM Overnight Islamic Interbank Rate Principal Risks Investor Profile Distribution Policy Financial Year End Trustee Shariah Adviser Profit/Interest rate risk Credit/Default risk The Fund is suitable for investors who: have a low risk tolerance level; have either short, medium or long term investment horizon; look for regular and stable though low level of return; look for alternative to Islamic deposit placements with tax incentive; and look for alternative to Islamic deposit placements that does not require determination of tenure on placements. The distribution (if any) is on a monthly basis subject to the availability of income. 30 June ART BIMBSEC You may refer the detailed information of the Fund in Section

30 2016/2017 MASTER PROSPECTUS 3.2 FEES, CHARGES AND EXPENSES Charges directly incurred by investors when purchasing or redeeming units of the Funds. Table below describes the charges that you may directly incur when you buy or redeem units of the Funds:- Charges Sales charge per unit Distribution Channels IUTA, UTC & Direct Purchase EPS MIS % of the NAV Fund 6.0% Nil Applicable to all Funds except PMB SCMF PMB SCMF 3.0% Applicable to all approved Funds except PMB SCMF Nil PMB SCMF Repurchase charge per unit IUTA, UTC, Direct Repurchase & EPF MIS Nil Applicable to all Funds The fee for switching are set out below: From To Equity funds Mixed Asset/ Balanced funds Money Market funds Switching fee Equity funds Up to RM25 per transaction Up to RM25 per transaction Nil Mixed Asset/ Balanced funds Up to RM25 per transaction Up to RM25 per transaction Nil Money Market funds Up to 6.0% of the amount switched Not applicable Transfer fee Up to RM10 per transaction (excluding stamp duty). Other charges Bank charges Telegraphic transfer charges Rate as determined by transacting financial institutions. Notes: i) The Manager may, at its discretion, charge a lower sales charge based on criteria as may be determined from time to time. Please refer to Chapter 8 for details on the Sales Charge. ii) All the above charges and fees are subject to the goods and services tax (GST) currently at the rate of 6.0%. (You may refer to Section 15.9 on the GST.) 22

31 MASTER PROSPECTUS 2016/2017 Fees and Expenses Indirectly Incurred when Investing in the Funds Table below describes the fees that you may indirectly incur when you invest in any of the Funds:- Fees And Expenses % Per Annum Of NAV Fund Annual Management Fee 1.5% Applicable to all Funds except PMB SBF, PMB SIF & PMB SCMF 1.0% PMB SBF 0.6% PMB SIF 0.4% PMB SCMF 0.1% Applicable to all Funds except PMB SCMF & PMB SDF Annual Trustee Fee 0.05% PMB SCMF Other Fees and Expenses Directly Related to the Fund 0.1% PMB SDF (subject to a minimum fee of RM18,000 per annum) Fees paid to brokers/dealers Auditor s fee Tax adviser s fee Valuation fee Taxes Custodial charges Tax voucher/ distribution warrants Annual/interim reports Bank charges The rate of brokerage fees is in accordance with and determined by the rules and regulations of Bursa Malaysia. The rate of Auditors fee is determined by the Manager and Auditors as per the agreement. The rate of Tax Adviser s fee is determined by the Manager and Tax Adviser as per the agreement. The rate of valuation fee is determined by the independent valuers as per the agreement. The rate of taxes is determined by the Government and other authorities. The rate of custodial fee is determined by the Manager and the Trustee. The fees on tax voucher/distribution warrants are determined by the printing company. The annual/interim reports fees are determined by the cost incurred on the issuance and distribution of the annual/interim reports. The rate is determined by the transacting financial institutions. Note: All the above charges, fees and expenses are subject to the goods and services (GST) currently at the rate of 6.0% (You may refer to Section 15.9 on the GST). 23

32 2016/2017 MASTER PROSPECTUS 3.3 ADDITIONAL INFORMATION Trusteeship of the Funds Funds under the ART trusteeship: a. PMB Dana Al-Aiman b. PMB Dana Mutiara c. PMB Dana Bestari d. PMB Shariah Aggressive Fund e. PMB Shariah Growth Fund f. PMB Shariah Index Fund g. PMB Shariah Premier Fund h. PMB Shariah Tactical Fund i. PMB Shariah Balanced Fund j. PMB Shariah Cash Management Fund Funds under CITB trusteeship: a. PMB Shariah Dividend Fund b. PMB Shariah Mid-Cap Fund c. PMB Shariah TNB Employees Fund Deed of the Funds Under ART trusteeship: a. Master Deed dated 3 June 1998; b. 2 nd Master Supplemental Deed dated 31 May 2001; c. 3 rd Master Supplemental Deed dated 20 May 2002; d. 4 th Master Supplemental Deed dated 8 June 2004; e. 5 th Master Supplemental Deed dated 6 September 2005; f. 6 th Master Supplemental Deed dated 10 February 2009; g. 7 th Master Supplemental Deed dated 20 July 2009; h. 8 th Master Supplemental Deed dated 15 August 2012; i. 9 th Master Supplemental Deed dated 9 October 2012; j. 10 th Master Supplemental Deed dated 29 November 2012; k. 11 th Master Supplemental Deed dated 30 July 2013; l. 12 th Master Supplemental Deed dated 4 March 2014; and m. 13 th Master Supplemental Deed dated 26 March Under CITB trusteeship: a. Principal deed dated 12 March 1992 in respect of PMB SMCF; b. 1 st Supplemental Deed dated 10 September 1993 in respect of PMB SMCF; c. 2 nd Supplemental Deed dated 10 October 1993 in respect of PMB SMCF; d. 3 rd Supplemental Deed dated 10 October 1994 in respect of PMB SMCF; e. Principal Deed dated 22 August 1995 in respect of PMB STEF; f. Supplemental Deed dated 3 June 1998 in respect of PMB SMCF and PMB STEF; g. 2 nd Master Supplemental Deed dated 31 May 2001 in respect of PMB SMCF and PMB STEF; 24

33 MASTER PROSPECTUS 2016/2017 h. Principal deed dated 13 June 2008 in respect of PMB SDF; i. 3 rd Supplemental Master Deed dated 13 November 2013 in respect of PMB SMCF, PMB STEF and PMB SDF; j. 4 th Supplemental Master Deed dated 4 March 2014; and k. 5 th Supplemental Master Deed dated 26 March Avenues for Advice to Prospective Investors For investment in Unit trusts, you may find answers to all your questions at Alternatively, you may contact Training & Investor Education Division, Securities Industry Development Corporation, No. 3, Persiaran Bukit Kiara, Bukit Kiara Kuala Lumpur (Tel: (03) ). Designated Fund Managers for the Funds The profile of the designated fund managers of the Fund may be referred to in Section There are fees and charges involved and investors are advised to consider them before investing in the Funds. Unit prices and distributions payable, if any, may go down as well as up. For information concerning certain risk factors which should be considered by prospective investors, see risk factors commencing in Chapter 4. Past performance of the Fund is not an indication of its future performance. Investors are required to complete Pre-Investment Form, Suitability Assessment Form and Foreign Account Tax Compliance Act (FATCA) Declaration Form in addition to Application Form before investing. 25

34 2016/2017 MASTER PROSPECTUS 4. RISK FACTORS As with all investments, there are risks involved. The prices of units in, and the income from, a unit trust fund may go up as well as down. You should be aware of the risks and returns involved in investing in a unit trust fund. No guarantee is given that you will receive any income distribution or return on your investments or that you will get back your initial amount invested in full. The risks involved in investing in unit trust funds include but not limited to the following:- 4.1 GENERAL RISKS OF INVESTING IN UNIT TRUST FUNDS Market Risk Market risk refers to the possibility that an investment will lose value because of a general decline in financial markets, due to economic, political and/or other factors, which will result in a decline in the Fund s NAV. Fund Management Risk The performance of a unit trust fund depends on the experience, knowledge and expertise of the fund manager and the investment strategies adopted. Poor management and/or strategies of a fund, such as delays in responding appropriately to the economic or market changes, or inadequate portfolio diversification, will jeopardize the investment of unit holders through the loss of their capital invested in the fund or loss of opportunity. Inflation Risk This is the risk that investors investment in the fund may not grow or generate income at a rate that keeps pace with inflation. This would reduce investors purchasing power even though the value of the investment in monetary terms has increased. Loan Financing Risk This risk occurs when investors take a loan/financing to finance their investment. The inherent risk of investing with borrowed money includes investors being unable to service the loan repayments. In the event units are used as collateral, an investor may be required to top-up the investors existing instalment if the prices of units fall below a certain level due to market conditions. Failing which, the units may be sold at a lower net asset value per unit as compared to the net asset value per unit at the point of purchase towards settling the loan. Non-Compliance Risk The risk that the Manager and others associated with Funds may not follow the rules set out in the Fund s deed and internal policies, or the laws that governs the unit trust scheme, or act fraudulently or dishonestly. Non-compliance may expose the fund to higher risks that may result in financial and/or non-financial losses. However, this risk is greatly reduced via proper establishment of the compliance and internal control policies. Liquidity Risk Liquidity risk refers to the ease of liquidating an asset depending on the asset s volume traded in the market. If the Fund holds assets that are illiquid, or are difficult to dispose of, the value of the Fund will be negatively affected when it has to sell such assets at unfavourable prices. 26

35 MASTER PROSPECTUS 2016/ SPECIFIC RISKS ASSOCIATED WITH INVESTMENT PORTFOLIOS In addition, there are also specific risks associated with the investment portfolio of each Fund. The specific risks include but are not limited to the following:- Equity Market Risk Applicable to PMB Al-Aiman, PMB Mutiara, PMB Bestari, PMB SAF, PMB SGF, PMB SMCF, PMB SIF, PMB SPF, PMB SDF, PMB STF, PMB SBF and PMB STEF The performance of the Fund is subject to the volatility of the stock market which is influenced by the changes in the economic and political climate, interest rate, international stock market performance and regulatory policies. The movement of the value in the underlying investment portfolio will affect the NAV of the Fund. Any downward movement of the value will negatively impact the NAV of the Fund. Stock Specific Risk Applicable to PMB Al-Aiman, PMB Mutiara, PMB Bestari, PMB SAF, PMB SGF, PMB SMCF, PMB SIF, PMB SPF, PMB SDF, PMB STF, PMB SBF and PMB STEF Prices of a particular stock may fluctuate in response to the circumstances affecting individual companies such as adverse financial performance, news of a possible merger or loss of key personnel of a company. Any adverse price movements of such stock will adversely affect the fund s NAV. Equity-related Securities Risk Applicable to PMB Al-Aiman, PMB Mutiara, PMB Bestari, PMB SAF, PMB SGF, PMB SMCF, PMB SIF, PMB SPF, PMB SDF, PMB STF, PMB SBF and PMB STEF The value of the equity-related securities depends on the value of the underlying equities that the securities are related to. Any upward movement in the value of the underlying equities may result an upward movement of the value of the respective equity-related securities, and vice versa. Hence, the movement of the value of the equity-related securities will affect the value of the Fund. Shariah Status Reclassification Risk Applicable to PMB Al-Aiman, PMB Mutiara, PMB Bestari, PMB SAF, PMB SGF, PMB SMCF, PMB SIF, PMB SPF, PMB SDF, PMB STF, PMB SBF and PMB STEF This risk refers to the risk that the currently held Shariah-compliant equities in the Fund may be reclassified as Shariah non-compliant in the periodic review of the equities by the SAC, the Shariah adviser or the Shariah boards of the relevant Islamic indices. If this occurs, the Manager will take the necessary steps to dispose such equities. There may be opportunity loss to the Fund due to the Fund not being allowed to retain the excess capital gains derived from the disposal of the Shariah non-compliant equities. In such an event, the Fund should : (a) (b) dispose of the securities if the value of the securities exceeds or is equal to the investment cost on the date of announcement of the List of Shariah-compliant securities by the SAC. The Fund is allowed to keep dividends received and capital gain from the disposal of the securities up to the date of announcement of the List of Shariah-compliant securities by the SAC. However, any dividends received and excess capital gain from the disposal of Shariah non-compliant securities after the date of announcement of the List of Shariah-compliant securities by the SAC should be channeled to baitulmal and/or charitable bodies; hold the respective securities if the market price of the said securities is below the investment cost until the market price or value of the securities is equal to the cost of investment; or 27

36 2016/2017 MASTER PROSPECTUS (c) dispose of the securities at the price lower than the investment cost which will result the decrease in the Fund s value. You may refer to Section 5.5 on the Fund s Shariah methodology on the treatment of gains and losses as a result of the reclassification of Shariah non-compliant equities. Dividend Policy Risk Applicable to PMB Al-Aiman, PMB Mutiara, PMB Bestari, PMB SDF and PMB STEF This is a risk particular to the fund which has heavy emphasis on high yield dividend stocks. Such a risk may occur when fundamentals of the company s business deteriorate or if there is a change in the dividend payout policy resulting in a reduction of the dividend to be paid by the company. 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. Risk of Tracking Error Applicable to PMB SIF The Fund s performance may not reflect the performance of the FBMSHA as the weights of index stocks held by the Fund vs the respective stock s weightings in the FBMSHA does not fully replicate the FBMSHA constituents. As a result, there is no guarantee that the fund will exactly replicate or track the underlying benchmark s return. However the Fund will be rebalanced on a monthly basis to manage its tracking error versus the benchmark. Profit/Interest Rate Risk Applicable to PMB STF, PMB SBF and PMB SCMF Movements in interest rate will have an impact on a management of a fund. This risk refers to the effect of profit/interest rate changes on the market value of Islamic money market instruments, Islamic deposit placements and sukuk. Any downward movement of the profit/interest rate may result in a loss of the expected return from the Fund s investments in Islamic money market instrument and Islamic deposit placement. The value of the sukuk has a tendency to move inversely with the movement of the profit/interest whereby the prices of the sukuk may fall when profit/interest rates rise, and vice versa. The interest rate is a general indicator. Although the Funds does not invest in interest bearing instruments, the movement of the interest rate will have an impact on the profit rate of the Islamic money market instruments and Islamic deposit placement, and consequently affect the expected return of the Fund s investments. Credit/Default Risk Applicable to PMB STF, PMB SBF and PMB SCMF Credit risk relates to the creditworthiness of the issuers of the sukuk and their expected ability to make timely payment of interest and/or principal. Any adverse situations faced by the issuer may impact the value as well as liquidity of the sukuk. In the case of rated sukuk, this may lead to a credit downgrade. Default risk relates to the risk that an issuer of a sukuk either defaulting on payments or failing to make payments in a timely manner which will in turn adversely affect the value of the sukuk. This could adversely affect the value of the fund. As a result of the general risks of investing in the unit trust funds and specific risks associated with investment portfolios, capital appreciation of the value of the Funds cannot be guaranteed. However, the Manager will take reasonable steps to ensure that the above potential risks are mitigated. You may refer to Section 5.7 on the Risk Management Strategies. 28

37 MASTER PROSPECTUS 2016/ THE FUNDS 5.1 EQUITY FUNDS The investment portfolio of the Funds comprises securities which have been classified as Shariahcompliant by the SAC. For securities not certified by the SAC, the status of the securities has been determined in accordance with the ruling issued by the Shariah Adviser of the Funds PMB DANA AL-AIMAN Fund Profile Category of Fund Type of Fund Equity (Shariah) Growth & Income General Information The Fund was launched on 9 April 1968 as Kumpulan Modal Bumiputera Yang Pertama for Bumiputera investors. Unit Holders on 21 September 1996 approved the conversion of the Fund into a Shariah-compliant fund and its opening to the public. It was re-launched as Dana Al-Aiman on 19 May The Fund assumed its current name on 28 April Investment Objective The objective of the Fund is to provide investors with steady return and to achieve capital growth in the medium to long term by investing in equities and fixed income securities that conform to the Shariah principles. Note: Any material changes to the investment objective of the Fund require Unit Holders approval. Investment Strategy The Fund shall invest primarily in a diversified portfolio of Shariah-compliant equity and equity-related securities listed on any recognized stock exchange in Malaysia. The portfolio construction process is research driven with extensive bottom-up fundamental analysis coupled with top down economic and sector analysis. In identifying investable listed companies, the Manager relies on fundamental research where the financial strength including track records, the company s prospects, business operation and top management of the companies are considered. In addition, prospects for the economies and sectors in which the companies operate are also assessed. The focus is on public-listed companies with growth prospects and/or having forecast dividend yield of 3.0% per annum or above over medium to long term to optimize the total returns of the Fund. Other valuation measures include price to earnings (PE), PE to growth, discounted cash flow, price to revalued net asset value and price to book depending in which sector the companies operate and whether the operations are perpetual or for a defined period. Analysis are also made on revenue growth, profit margins, sustainability of earnings, balance sheet and cash flow. In view of its investment objective, the designated fund manager will trade the securities depending on the securities market conditions. The Fund will also partake in situational investment opportunity (such as mergers & acquisitions and privatization) within the acceptable level of risks as analyzed by the Manager. Under normal circumstances, allocation to equity and equity-related securities ranges between 70% and 99.5% of the NAV of the Fund. The remaining will be invested in Islamic money market instruments, Islamic deposit placements, sukuk and/or other permitted investments. The equity allocation may be reviewed from time to time depending on the global, regional and local economic as well as equity market conditions. This includes assessing the relevant political, economic and business environment prior to making investment decisions. 29

38 2016/2017 MASTER PROSPECTUS Asset Allocation Asset class Shariah-compliant equity and equity-related securities Islamic money market instruments, Islamic deposit placements, sukuk and/or other permitted investments. % of the Fund s NAV Minimum 70% and maximum 99.5% The remaining balance of the Fund s NAV not invested in the above. Temporary Defensive Positions Please refer to Section 5.6 for detailed explanation. Risks of Investing in the Fund Please refer to Chapter 4 for detailed explanation of the risks involved. Risk Management Please refer to Section 5.7 for detailed explanation of risk management strategies employed by the Manager. Performance Benchmark FBMSHA The index comprises the constituents of the FBM EMAS that are Shariah-compliant according to the SAC screening methodology. You may obtain the information pertaining to the index from Bursa Malaysia website and major daily newspapers. Permitted Investments Please refer to Section 5.8 for details. Investment Restrictions and Limits Please refer to Section 5.9 for details. Valuation of Investments Please refer to Section 5.10 for details. 30

39 MASTER PROSPECTUS 2016/ PMB DANA MUTIARA Fund Profile Category of Fund Type of Fund Equity (Shariah) Growth & Income General Information The Fund was launched on 2 February 1970 as Kumpulan Modal Bumiputera Yang Keempat for Bumiputera investors. Unit Holders approved on 21 April 2004 its conversion into a Shariah-compliant fund and its opening to the public. It was re-launched as ASM Dana Mutiara on 5 August 2004 with a new marketing strategy targeting especially women investors seeking for medium to long term investment. The Fund assumed its current name on 28 April Investment Objective The objective of the Fund is to provide investors with steady return and to achieve capital growth in the medium to long term by investing in equities and fixed income securities that conform to the Shariah principles. Note: Any material changes to the investment objective of the Fund require Unit Holders approval. Investment Strategy The Fund shall invest primarily in a diversified portfolio of Shariah-compliant equity and equity-related securities listed on any recognized stock exchange in Malaysia. The portfolio construction process is research driven with extensive bottom-up fundamental analysis coupled with top down economic and sector analysis. In identifying investable listed companies, the Manager relies on fundamental research where the financial strength including track records, the company s prospects, business operation and top management of the companies are considered. In addition, prospects for the economies and sectors in which the companies operate are also assessed. The focus is on public-listed companies with growth prospects and/or having forecast dividend yield of 3.0% per annum or above over medium to long term to optimize the total returns of the Fund. Other valuation measures include price to earnings (PE), PE to growth, discounted cash flow, price to revalued net asset value and price to book depending in which sector the companies operate and whether the operations are perpetual or for a defined period. Analysis are also made on revenue growth, profit margins, sustainability of earnings, balance sheet and cash flow. In view of its investment objective, the designated fund manager will trade the securities depending on the securities market conditions. The Fund will also partake in situational investment opportunity (such as mergers & acquisitions and privatization) within the acceptable level of risks as analysed by the Manager. Under normal circumstances, allocation to equity and equity-related securities ranges between 70% and 99.5% of the NAV of the Fund. The remaining will be invested in Islamic money market instruments, Islamic deposit placements, sukuk and/or other permitted investments. The equity allocation may be reviewed from time to time depending on the global, regional and local economic as well as equity market conditions. This includes assessing the relevant political, economic and business environment prior to making investment decisions. 31

40 2016/2017 MASTER PROSPECTUS Asset Allocation Asset Class Shariah-compliant equity and equity-related securities Islamic money market instruments, Islamic deposit placements, sukuk and/or other permitted investments. % of the Fund s NAV Minimum 70% and maximum 99.5% The remaining balance of the Fund s NAV not invested in the above. Temporary Defensive Positions Please refer to Section 5.6 for detailed explanation. Risks of Investing in the Fund Please refer to Chapter 4 for detailed explanation of the risks involved. Risk Management Please refer to Section 5.7 for detailed explanation of risk management strategies employed by the Manager. Performance Benchmark FBMSHA The index comprises the constituents of the FBM EMAS that are Shariah-compliant according to the SAC screening methodology. You may obtain the information pertaining to the index from Bursa Malaysia website and major daily newspapers. Permitted Investments Please refer to Section 5.8 for details. Investment Restrictions and Limits Please refer to Section 5.9 for details. Valuation of Investments Please refer to Section 5.10 for details. 32

41 MASTER PROSPECTUS 2016/ PMB DANA BESTARI Fund Profile Category of Fund Type of Fund Equity (Shariah) Growth & Income General Information The Fund was launched on 17 July 1975 as Kumpulan Modal Bumiputera Yang Kelapan for Bumiputera investors. Unit Holders approved on 23 March 2002 its conversion into a Shariah-compliant fund and its opening to the public. It was re-launched as Dana Bestari on 3 October 2002 with a new marketing strategy focusing on investment for future education funding. The Fund assumed its current name on 28 April Investment Objective The objective of the Fund is to provide investors with steady return and to achieve capital growth in the medium to long term by investing in equities and fixed income securities that conform to the Shariah principles. Note: Any material changes to the investment objective of the Fund require Unit Holders approval. Investment Strategy The Fund shall invest primarily in a diversified portfolio of Shariah-compliant equity and equity-related securities listed on any recognized stock exchange in Malaysia. The portfolio construction process is research driven with extensive bottom-up fundamental analysis coupled with top down economic and sector analysis. In identifying investable listed companies, the Manager relies on fundamental research where the financial strength including track records, the company s prospects, business operation and top management of the companies are considered. In addition, prospects for the economies and sectors in which the companies operate are also assessed. The focus is on public-listed companies with growth prospects and/or having forecast dividend yield of 3.0% per annum or above over medium to long term to optimize the total returns of the Fund. Other valuation measures include price to earnings (PE), PE to growth, discounted cash flow, price to revalued net asset value and price to book depending in which sector the companies operate and whether the operations are perpetual or for a defined period. Analysis are also made on revenue growth, profit margins, sustainability of earnings, balance sheet and cash flow. In view of its investment objective, the designated fund manager will trade the securities depending on the securities market conditions. The Fund will also partake in situational investment opportunity (such as mergers & acquisitions and privatization) within the acceptable level of risks as analysed by the Manager. Under normal circumstances, allocation to equity and equity-related securities ranges between 70% and 99.5% of the NAV of the Fund. The remaining will be invested in Islamic money market instruments, Islamic deposit placements, sukuk and/or other permitted investments. The equity allocation may be reviewed from time to time depending on the global, regional and local economic as well as equity market conditions. This includes assessing the relevant political, economic and business environment prior to making investment decisions. 33

42 2016/2017 MASTER PROSPECTUS Asset Allocation Asset Class Shariah-compliant equity and equity-related securities Islamic money market instruments, Islamic deposit placements, sukuk and/or other permitted investments. % of the Fund s NAV Minimum 70% and maximum 99.5% The remaining balance of the Fund s NAV not invested in the above. Temporary Defensive Positions Please refer to Section 5.6 for detailed explanation. Risks of Investing in the Fund Please refer to Chapter 4 for detailed explanation of the risks involved. Risk Management Please refer to Section 5.7 for detailed explanation of risk management strategies employed by the Manager. Performance Benchmark FBMSHA The index comprises the constituents of the FBM EMAS that are Shariah-compliant according to the SAC screening methodology. You may obtain the information pertaining to the index from Bursa Malaysia website and major daily newspapers. Permitted Investments Please refer to Section 5.8 for details. Investment Restrictions and Limits Please refer to Section 5.9 for details. Valuation of Investments Please refer to Section 5.10 for details. 34

43 MASTER PROSPECTUS 2016/ PMB SHARIAH AGGRESSIVE FUND Fund Profile Category of Fund Type of Fund Equity (Shariah) Growth General Information The Fund was launched on 5 May 1972 as Kumpulan Modal Bumiputera Yang Keenam for Bumiputera investors. Unit Holders approved on 5 May 2005 its conversion into a Shariah-compliant aggressive fund and its opening to the public. It was re-launched as ASM Shariah Aggressive Fund with a new marketing strategy targeting investors who seek high capital return at a higher level of risks. The Fund assumed its current name on 28 April Investment Objective The objective of the Fund is to provide investors with opportunity to earn high capital return over the medium to long term through active investments in Shariah approved securities listed on the Bursa Malaysia. Note: Any material changes to the investment objective of the Fund require Unit Holders approval. Investment Strategy The Fund shall invest primarily in a diversified portfolio of Shariah-compliant equity and equity-related securities listed on any recognized stock exchange in Malaysia.The Fund has an aggressive investment approach where active trading strategy is adopted. Its PTR is normally higher than that of the normal equitybased funds. It shall invest primarily in a diversified portfolio among any of the top 300 Shariah-compliant companies in terms of market capitalization listed on Bursa Malaysia. Exclusions from the list of the 300, if any, are those companies that have huge retained losses to the tune that its net asset value per share is less than 50% of its par value this is to mitigate the risk of investing in a potential insolvent company. The research process is based on relative performance analysis that is aimed at selecting a portfolio of stocks among the stock universe as mentioned above that have the potential to have good relative price performance. Under normal circumstances, allocation to equity and equity-related securities ranges between 80% and 99.5% of the NAV of the Fund. The remaining will be invested in Islamic money market instruments, Islamic deposit placements and/or other permitted investments. The equity allocation may be reviewed from time to time depending on the global, regional and local economic as well as equity market conditions. This includes assessing the relevant political, economic and business environment prior to making investment decisions. Asset Allocation Asset Class % of Fund s NAV Shariah-compliant equity and equity-related securities Islamic money market instruments, Islamic deposit placements and/or other permitted investments. Minimum 80% and maximum 99.5% The remaining balance of the Fund s NAV not invested in the above. 35

44 2016/2017 MASTER PROSPECTUS Temporary Defensive Positions Please refer to Section 5.6 for detailed explanation. Risks of Investing in the Fund Please refer to Chapter 4 for detailed explanation of the risks involved. Risk Management Please refer to Section 5.7 for detailed explanation of risk management strategies employed by the Manager. Performance Benchmark FBMSHA The index comprises the constituents of the FBM EMAS that are Shariah-compliant according to the SAC screening methodology. You may obtain the information pertaining to the index from Bursa Malaysia website and major daily newspapers. Permitted Investments Please refer to Section 5.8 for details. Investment Restrictions and Limits Please refer to Section 5.9 for details. Valuation of Investments Please refer to Section 5.10 for details. 36

45 MASTER PROSPECTUS 2016/ PMB SHARIAH GROWTH FUND Fund Profile Category of Fund Type of Fund Equity (Shariah) Growth General Information The Fund was launched on 28 December 1972 as Kumpulan Modal Bumiputera Dana Pertumbuhan for Bumiputera investors. Unit Holders approved on 18 October 2012 the conversion into Shariah-compliant fund and its opening to the public. It was re-launched on 15 January 2013 as ASM Shariah Growth Fund with a new marketing strategy targeting investors who seek to invest in a fund that invests in growth stocks. The Fund assumed its current name on 28 April Investment Objective The objective of the Fund is to provide investors with an opportunity to achieve capital growth over the medium to long term period by investing in Shariah-compliant securities. Note: Any material changes to the investment objective of the Fund require Unit Holders approval. Investment Strategy The Fund shall invest primarily in a diversified portfolio of Shariah-compliant equity and equity-related securities listed on any recognized stock exchange in Malaysia. It shall invest primarily in a diversified portfolio among any of the top 300 Shariah-compliant companies in terms of market capitalization listed on Bursa Malaysia, except:- (a) those companies that have huge retained losses to the tune that its net asset value per share being less than 50% of its par value - this is to mitigate the risk of investing in a potential insolvent company; and (b) those companies that are expected to register earnings per share growth below 10% per annum. The research process is based on relative performance analysis that is aimed at selecting a portfolio of stocks among the stock universe as mentioned above that have the potential, as analyzed by the Manager, to have good relative price performance. In view of its investment objective, the designated fund manager will trade the securities depending on the securities market conditions. Under normal circumstances, allocation to equity and equity-related securities ranges between 80% and 99.5% of the NAV of the Fund. The remaining will be invested in Islamic money market instruments, Islamic deposit placements and/or other permitted investments. The equity allocation may be reviewed from time to time depending on the global, regional and local economic as well as equity market conditions. This includes assessing the relevant political, economic and business environment prior to making investment decisions. Asset Allocation Asset Class Shariah-compliant equity and equity-related securities Islamic money market instruments, Islamic deposit placements and/or other permitted investments. % of Fund s NAV Minimum 80% and maximum 99.5% The remaining balance of the Fund s NAV not invested in the above. 37

46 2016/2017 MASTER PROSPECTUS Temporary Defensive Positions Please refer to Section 5.6 for detailed explanation. Risks of Investing in the Fund Please refer to Chapter 4 for detailed explanation of the risks involved. Risk Management Please refer to Section 5.7 for detailed explanation of risk management strategies employed by the Manager. Performance Benchmark FBMSHA The index comprises the constituents of the FBM EMAS that are Shariah-compliant according to the SAC screening methodology. You may obtain the information pertaining to the index from Bursa Malaysia website and major daily newspapers. Permitted Investments Please refer to Section 5.8 for details. Investment Restrictions and Limits Please refer to Section 5.9 for details. Valuation of Investments Please refer to Section 5.10 for details. 38

47 MASTER PROSPECTUS 2016/ PMB SHARIAH MID-CAP FUND Fund Profile Category of Fund Type of Fund Equity (Shariah) Growth General Information The Fund was launched as ASM First Public Fund on 20 April 1992 and open to the public. Unit Holders approved on 4 July 2013 the change of the Fund s investment objective to make it a Shariah-compliant fund, focusing the Fund to invest in securities that comply with Shariah requirements. It was re-launched on 7 March 2014 as ASM Shariah Mid-Cap Fund with a new marketing strategy targeting investors who seek to invest in a fund that invests in medium sized listed companies. The Fund assumed its current name on 28 April Investment Objective The objective of the Fund is to achieve capital growth over the medium to long-term period by investing primarily in medium sized Shariah compliant companies in terms of market capitalization. Note: Any material changes to the investment objective of the Fund require Unit Holders approval. Investment Strategy The Fund shall invest primarily in a diversified portfolio of Shariah-compliant equity and equity-related securities listed on any recognized stock exchange in Malaysia. It shall invest primarily in a diversified portfolio of Shariah-compliant equity and equity-related securities of medium sized companies with market capitalization of between RM1 billion and RM7 billion at the point of purchase. However, the Fund may invest up to 20% of its NAV in securities of Shariah-compliant companies with market capitalization in excess of RM7 billion. The portfolio construction process is research driven with fundamental analysis conducted among the companies derived from the process as mentioned above. In identifying investable listed companies among them, the Manager relies on fundamental research where the financial strength including track records, the company s prospects, business operation and top management of the companies are considered. Other valuation measures include price to earnings (PE), PE to growth, discounted cash flow, price to revalued net asset value and price to book depending in which sector the companies operate and whether the operations are perpetual or for a defined period. Analysis are also made on revenue growth, profit margins, sustainable earnings, balance sheet and cash flow. In addition, prospects for the economies and sectors in which the companies operate are also assessed. In view of its investment objective, the designated fund manager will trade the securities depending on the securities market conditions. The Fund will maintain equity exposure within a range of 70% to 99.5% of its NAV. The remaining of the Fund s NAV shall be invested in Islamic money market instruments, Islamic deposit placements, sukuk and/or other permitted investments. Asset Allocation Asset Class Shariah-compliant equity and equity-related securities Islamic money market instruments, Islamic deposit placements, sukuk and/or other permitted investments. % of Fund s NAV Minimum 70% Maximum 99.5% The remaining balance of the Fund s NAV not invested in the above. 39

48 2016/2017 MASTER PROSPECTUS Temporary Defensive Positions Please refer to Section 5.6 for detailed explanation. Risks of Investing in the Fund Please refer to Chapter 4 for detailed explanation of the risks involved. Risk Management Please refer to Section 5.7 for detailed explanation of risk management strategies employed by the Manager. Performance Benchmark FBMSHA The index comprises the constituents of the FBM EMAS that are Shariah-compliant according to the SAC screening methodology. You may obtain the information pertaining to the index from Bursa Malaysia website and major daily newspapers. Permitted Investments Please refer to Section 5.8 for details. Investment Restrictions and Limits Please refer to Section 5.9 for details. Valuation of Investments Please refer to Section 5.10 for details. 40

49 MASTER PROSPECTUS 2016/ PMB SHARIAH INDEX FUND Fund Profile Category of Fund Type of Fund Equity (Shariah) Index General Information The Fund was launched on 19 February 1969 as Kumpulan Modal Bumiputera Yang Kedua for Bumiputera investors. Unit Holders approved on 23 November 2000 the change of its investment objective to an index tracking fund and its opening to the public. The Fund was re-launched as ASM Index Fund on 25 March Subsequently on 19 July 2012, Unit Holders approved the Fund to be Shariah-compliant while maintaining it as an index-tracking fund. It was re-launched as ASM Shariah Index Fund on 15 January The Fund assumed its current name on 28 April Investment Objective The objective of the Fund is to provide investors with the opportunity to gain reasonable return and capital growth in the medium to long term period by investing in Shariah-compliant securities whilst at the same time the Manager attempts to match closely its performance with the performance of the FTSE Bursa Malaysia EMAS Shariah Index (FBMSHA). Note: Any material changes to the investment objective of the Fund require Unit Holders approval. Investment Strategy The Fund shall invest in a diversified portfolio of Shariah-compliant equity securities listed on Bursa Malaysia, primarily in stocks constituent of the FBMSHA. It is a passively managed index fund whereby the Fund Manager constructs the Fund s investment portfolio based on an index sampling approach by investing not less than 60% of the Fund s NAV in the top 15 constituent stocks of the FBMSHA that represent approximately 63% of the market capitalization of the index (as at 29 February 2016). The balance will be invested in the next remaining constituent stocks of FBMSHA and any other Shariah-compliant securities listed on Bursa Malaysia. Under normal circumstances, the Fund shall invest at least 90% of its NAV in equities with a minimum 60% among the top 15 constituent stocks of the FBMSHA. However equity investment of the Fund shall not exceed 99.5% of its NAV. The balance will be placed Islamic money market instruments, Islamic deposit placements and/or other permitted investments. Asset Allocation Asset Class Shariah-compliant equity and equity-related securities Islamic money market instruments, Islamic deposit placements and/or other permitted investments. % of Fund s NAV Minimum 90% (with a minimum 60% among the top 15 constituent stocks of FBMSHA) and maximum 99.5%. The remaining balance of the Fund s NAV not invested in the above. Performance Benchmark The benchmark for the Fund is FBMSHA. The index comprises the constituents of the FBM EMAS that are Shariah-compliant according to the SAC screening methodology. The FBMSHA has been designed to provide investors with a broad benchmark for Shariah-compliant investment. It was launched on 22 January 2007 and developed using a base value of 6,000 as of 31 March

50 2016/2017 MASTER PROSPECTUS The 5 top industrial sector breakdown of the FBMSHA by the market capitalization as at 29 February 2016 was as below: Sector No of Constituents Total Market Capitalization (RM mil) Weight (%) Telecommunications 6 78, Industrial Goods & Services 44 57, Food & Beverages 13 49, Utilities 5 51, Oil & Gas 21 47, Total , Source: The FBMSHA is subject to the FTSE Bursa Malaysia index rules and calculation methodology. To be eligible for inclusion in the FBMSHA, any stock is subject to the following screening:- Eligible Securities All classes of ordinary shares in issue are eligible for inclusion, subject to conforming to all other rules of eligibility, free float and liquidity. Free Float Free float is share capital freely available for trading. Each company is required to have at least 15% of free float to be eligible for inclusion. The free float excludes restricted shareholding like cross holdings, significant long term holdings by founders, their families and/or directors, restricted employee share schemes, government holdings and portfolio investments subject to a lock in clause, for the duration of that clause. A free float factor is applied to the market capitalization of each company in accordance with the free float bands specified in the FTSE Bursa Malaysia ground rules. The factor is used to determine the attribution of the company's market activities in the index. Liquidity A liquidity screen is applied to ensure the company's stocks are liquid enough to be traded. An existing constituent which does not turnover at least 0.04% of its shares in issue (after the application of any investability weightings) based on its median daily trade per month for at least eight or the 12 month prior to the semi-annual review will be removed. Shariah Compliance The general criteria, as determined by the SAC, stipulate that the Shariah-compliant companies must not be involved in any of the following core activities: a. Financial services based on riba (interest); b. Gambling; c. Manufacture or sale of non-halal products or related products; d. Conventional insurance; e. Entertainment activities that are non-permissible according to Shariah; f. Manufacture or sale of tobacco based products or related products; g. Stockbroking or share trading in Shariah non-compliant securities; and h. Other activities deemed non-permissible according to Shariah. The FBMSHA is calculated every 60 seconds on a real time basis. Its constituents are reviewed semi-annually in June and December by the FTSE Bursa Malaysia Index Advisory Committee. 42

51 MASTER PROSPECTUS 2016/2017 You may obtain information on the FBMSHA from the business section of major daily newspapers and financial periodicals, Bursa Malaysia's website at and FTSE Group's website at The calculation of the FBMSHA is provided by FTSE. Therefore, the accuracy and completeness of the calculation of FBMSHA may be affected by data, system, operational and statistical error of the index provider. Circumstances that May Lead to Tracking Errors The Fund potentially exhibits tracking error as it may not follow exactly the movement of the FBMSHA where it may outperform or underperform the index. The tracking error may arise due to the following reasons: a. the Fund s investment does not fully replicate the FBMSHA stock constituents as it emphasizes on the top 15 of the FBMSHA which represent only approximately 65% of the index; b. the Fund s underweight positions in any of the top 15 of the FBMSHA; c. the Fund s investment in securities other than the top 15 components of the FBMSHA as investment cannot exceed the index weight; d. the Fund s non-investment in lower weightage constituent stocks that outperform the index; e. the Fund's equity investment of between 90% and 99.5% whereas the index is 100% invested at all times; and f. fees and expenses of the Fund such as management fees, trustee fees, other indirect fees and transaction costs which are charged to the Fund, contributing variance between the return of the Fund and its performance benchmark. The error may be minimized by rebalancing the investments in the Fund at the beginning of the subsequent months to reflect the changes to the composition of the weightings of shares in the FBMSHA. Accordingly, a monthly analysis of the portfolio is conducted to ensure that tracking errors are within an acceptable level, the investment weightings are within the tolerance limit, and a minimum 60% of the Fund s NAV is in FBMSHA top 15 major component stocks. Policy on Investment Portfolio Rebalancing The Fund is rebalanced at the beginning of the month to reflect the changes to the composition of or the weightings of shares in the FBMSHA at the end of the preceding month. The rebalancing process is done when the NAV of the stock in the portfolio exceeds its respective weighting in the FBMSHA. The shares of that particular stock are disposed off to reduce the weighting to match the level of stock weighting of FBMSHA. However, for stocks which cost of investment is higher than the market value, the disposal may be done within a 3-month grace period to minimize any potential loss. Risks of Investing in the Fund Please refer to Chapter 4 for detailed explanation of the risks involved. Risk Management Please refer to Section 5.7 for detailed explanation of risk management strategies employed by the Manager. 43

52 2016/2017 MASTER PROSPECTUS Top 10 constituents of the FBMSHA versus Top 10 stocks of the Fund as at 29 February 2016: FBMSHA FUND Constituent % Weight Stock % NAV Tenaga Nasional Bhd Tenaga Nasional Bhd Axiata Group Bhd 6.29 Axiata Group Bhd 6.24 Sime Darby Bhd 5.70 Sime Darby Bhd 5.66 Petronas Chemicals Group Bhd 4.59 Petronas Chemicals Group Bhd 4.61 Digi.Com Bhd 4.34 Digi.Com Bhd 4.31 IHH Healthcare Bhd 4.22 IHH Healthcare Bhd 4.15 Petronas Gas Bhd 4.12 Petronas Gas Bhd 4.12 IOI Corporation Berhad 4.07 IOI Corporation Berhad 4.02 Maxis Bhd 3.79 Maxis Bhd 3.85 Telekom Malaysia Bhd 3.46 Telekom Malaysia Bhd 3.48 Total Permitted Investments Please refer to Section 5.8 for details. Investment Restrictions and Limits Please refer to Section 5.9 for details. Valuation of Investments Please refer to Section 5.10 for details. There is no guarantee or assurance of exact or identical replication at any time of the performance of the FBMSHA. The FBMSHA composition may change and the component securities of the FBMSHA may be delisted. The investment of the Fund may be concentrated in securities of the top 15 constituent stocks of the FBMSHA. 44

53 MASTER PROSPECTUS 2016/ PMB SHARIAH PREMIER FUND Fund Profile Category of Fund Type of Fund Equity (Shariah) Growth General Information The Fund was launched on 14 August 1972 as Kumpulan Modal Bumiputera Pelaboran Perwira for Bumiputera investors only. It was opened to the public and re-launched as ASM Premier Fund on 12 June Unit Holders approved on 18 October 2012 the change of the Fund s investment objective to make it Shariahcompliant. It was subsequently re-launched as ASM Shariah Premier Fund on 15 January 2013 targeting investors who seek to invest in a fund investing in large capitalized companies. The Fund assumed its current name on 28 April Investment Objective The objective of the Fund is to provide opportunities for investors to achieve capital growth over the medium to long term period through investment in any of the 50 largest Shariah-compliant stocks by market capitalization (at the time of purchase) listed on the Bursa Malaysia. Note: Any material changes to the investment objective of the Fund require Unit Holders approval. Investment Strategy The Fund shall invest in a diversified portfolio of Shariah-compliant equity and equity-related securities listed on any recognized stock exchange in Malaysia, primarily among any of the 50 largest Shariah-compliant stocks in terms of market capitalization (at the point of purchase) listed on Bursa Malaysia. It may invest not more than 30% of its NAV in any of the next top 25 largest listed companies based on market capitalization listed on Bursa Malaysia. The Fund will focus on companies that are stable with growth potential and/or have dividend yield of 3.0% per annum or above. The research process is based on relative performance analysis that is aimed at selecting a portfolio of stocks among the stock universe as mentioned above that have the potential, as analyzed by the Manager, to have a relative good performance. In view of its investment objective, the designated fund manager will trade the securities depending on the securities market conditions. The Fund will maintain equity exposure within a range of 70% to 99.5% of its NAV. The remaining of the Fund s NAV shall be invested in Islamic money market instruments, Islamic deposit placement, sukuk and/or other permitted investments. Asset Allocation Asset Class Shariah-compliant equity and equity-related securities Islamic money market instruments, Islamic deposit placements, sukuk and/or other permitted investments % of Fund s NAV Minimum 70% and maximum 99.5% The remaining balance of the Fund s NAV not invested in the above. 45

54 2016/2017 MASTER PROSPECTUS Temporary Defensive Positions Please refer to Section 5.6 for detailed explanation. Risks of Investing in the Fund Please refer to Chapter 4 for detailed explanation of the risks involved. Risk Management Please refer to Section 5.7 for detailed explanation of risk management strategies employed by the Manager. Performance Benchmark FBMSHA The index comprises the constituents of the FBM EMAS that are Shariah-compliant according to the SAC screening methodology. You may obtain the information pertaining to the index from Bursa Malaysia website and major daily newspapers. Permitted Investments Please refer to Section 5.8 for details. Investment Restrictions and Limits Please refer to Section 5.9 for details. Valuation of Investments Please refer to Section 5.10 for details. 46

55 MASTER PROSPECTUS 2016/ PMB SHARIAH DIVIDEND FUND Fund Profile Category of Fund Type of Fund Equity (Shariah) Income General Information The Fund was established on 13 June 2008 as ASM Shariah Dividend Fund and open to the public. It assumed its current name on 28 April Investment Objective The objective of the Fund is to provide investors with an opportunity to gain consistent and stable income stream that is potentially higher than the average fixed deposit rates. Note: Any material changes to the investment objective of the Fund require Unit Holders approval. Investment Strategy The Fund shall invest primarily in a diversified portfolio of Shariah-compliant equity and equity-related securities listed on any recognized stock exchange in Malaysia. It shall invest primarily in a diversified portfolio among any of the top 300 Shariah-compliant companies in terms of market capitalization listed on Bursa Malaysia, with the exclusion of the following:- (a) those companies that have huge retained losses to the tune that its net asset value per share being less than 50% of its par value - this is to mitigate the risk of investing in a potential insolvent company; and (b) those companies that are expected to declare and pay annual dividend of less than 3% net based on the prevailing price. The research process is based on relative performance analysis that is aimed at selecting a portfolio of stocks among the stock universe as mentioned above that have the potential, as analyzed by the Manager, to have good relative price performance. In view of its investment objective, the designated fund manager will trade the securities depending on the securities market conditions. Under normal circumstances, allocation to equity and equity-related securities ranges between 70% and 99.5% of the NAV of the Fund. The remaining will be invested in Islamic money market instruments, Islamic deposits placement, sukuk and/or other permitted investments. Asset Allocation Asset Class Shariah-compliant equity and equity-related securities Islamic money market instruments, Islamic deposits placement, sukuk and/or other permitted investments % of Fund s NAV Minimum 70% and maximum 99.5% The remaining balance of the Fund s NAV not invested in the above. The equity allocation may be reviewed from time to time depending on the global, regional and local economic as well as equity market conditions. This includes assessing the relevant political, economic and business environment prior to making investment decisions. 47

56 2016/2017 MASTER PROSPECTUS Temporary Defensive Position Please refer to Section 5.6 for detailed explanation. Risks of Investing in the Fund Please refer to Chapter 4 for detailed explanation of the risks involved. Risk Management Please refer to Section 5.7 for detailed explanation of risk management strategies employed by the Manager. Performance Benchmark FBMSHA The index comprises the constituents of the FBM EMAS that are Shariah-compliant according to the SAC screening methodology. You may obtain the information pertaining to the index from Bursa Malaysia website and major daily newspapers. Permitted Investments Please refer to Section 5.8 for details. Investment Restrictions and Limits Please refer to Section 5.9 for details. Valuation of Investments Please refer to Section 5.10 for details. 48

57 MASTER PROSPECTUS 2016/ PMB SHARIAH TNB EMPLOYEES FUND Fund Profile Category of Fund Type of Fund Equity (Shariah) Growth & Income General Information The Fund was launched on 28 August 1995 as Amanah Saham Pekerja-Pekerja TNB. It is meant for the employees and retirees of Tenaga Nasional Berhad (TNB), members of the Board of Directors of TNB and any corporations, bodies, clubs, associations and/or cooperatives related to TNB and/or the employees or retirees of TNB, as may be recognized and/or approved by TNB. Unit Holders approved on 4 September 2013 for the change of the Fund s investment objective, making it a Shariah-compliant fund. The Fund was subsequently renamed ASM Shariah TNB Employees Fund on 7 March It assumed its current name on 28 April Investment Objective The objective of the Fund is to provide investors with an opportunity to gain steady income and to achieve capital growth over the medium to long term period by investing in a portfolio of investments that comply with Shariah principles. Note: Any material changes to the investment objective of the Fund require Unit Holders approval. Investment Strategy The Fund shall invest primarily in a diversified portfolio of Shariah-compliant equity and equity-related securities listed on any recognized stock exchange in Malaysia. The portfolio construction process is research driven with extensive bottom-up fundamental analysis coupled with top down economic and sector analysis. In identifying investable listed companies, the Manager relies on fundamental research where the financial strength including track records, the company s prospects, business operation and top management of the companies are considered. In addition, prospects for the economies and sectors in which the companies operate are also assessed. The focus is on public-listed companies with growth prospects and/or having forecast dividend yield of 3.0% per annum or above over medium to long term to optimize the total returns of the Fund. Other valuation measures include price to earnings (PE), PE to growth, discounted cash flow, price to revalued net asset value and price to book depending in which sector the companies operate and whether the operations are perpetual or for a defined period. Analysis are also made on revenue growth, profit margins, sustainable earnings, balance sheet and cash flow. In view of its investment objective, the designated fund manager will trade the securities depending on the securities market conditions. The Fund will also partake in situational investment opportunity (such as mergers & acquisitions and privatization) within the acceptable level of risks as analysed by the Manager. Under normal circumstances, allocation to equity and equity-related securities ranges between 70% and 99.5% of the NAV of the Fund. The remaining will be invested in Islamic money market instruments, Islamic deposits placement, sukuk and/or other permitted investments. 49

58 2016/2017 MASTER PROSPECTUS Asset Allocation Asset Class Shariah-compliant equity and equity-related securities The remaining will be invested in Islamic money market instruments, Islamic deposits placement, sukuk and/or other permitted investments. % of Fund s NAV Minimum 70% and maximum 99.5% The remaining balance of the Fund s NAV not invested in the above. The equity allocation may be reviewed from time to time depending on the global, regional and local economic as well as equity market conditions. This includes assessing the relevant political, economic and business environment prior to making investment decisions. Temporary Defensive Positions Please refer to Section 5.6 for detailed explanation. Risks of Investing in the Fund Please refer to Chapter 4 for detailed explanation of the risks involved. Risk Management Please refer to Section 5.7 for detailed explanation of risk management strategies employed by the Manager. Performance Benchmark FBMSHA The index comprises the constituents of the FBM EMAS that are Shariah-compliant according to the SAC screening methodology. You may obtain the information pertaining to the index from Bursa Malaysia website and major daily newspapers. Permitted Investments Please refer to Section 5.8 for details. Investment Restrictions and Limits Please refer to Section 5.9 for details. Valuation of Investments Please refer to Section 5.10 for details. 50

59 MASTER PROSPECTUS 2016/ MIXED ASSET FUND PMB SHARIAH TACTICAL FUND Fund Profile Category of Fund Type of Fund Mixed Asset (Shariah) Growth & Income General Information The Fund was initially launched on 29 October 1979 as Kumpulan Modal Bumiputera Yang Kesebelas for Bumiputera investors. Unit Holders approved on 4 July 2013 the change of the Fund s investment objective, making it a Shariah-compliant fund that is tactical in nature and opened to the public. The Fund was relaunched as ASM Shariah Tactical Fund on 25 October It assumed its current name on 28 April Investment Objective The objective of the Fund is to achieve capital growth over the medium to long term period by investing in a portfolio of investments that comply with Shariah principles. Note: Any material changes to the investment objective of the Fund require Unit Holders approval. Investment Strategy The Fund adopts a tactical asset allocation strategy and has the flexibility to rebalance its allocation between the different asset classes of Shariah-compliant equity and equity-related securities, and non-equity investments including sukuk, Islamic money markets instruments, Islamic deposit placements and/or other permitted investments, depending on market conditions. Its equity allocation or non-equity allocation may range between 0% and 100% of the NAV of the Fund. The Fund will be actively managed through the use of tactical strategies and frequent portfolio reallocation between Shariah-compliant equity and sukuk, Islamic money market instruments, Islamic deposit placements and/or other permitted investments. The asset allocation can vary from a defensive to an aggressive asset allocation at any given time, depending on the market environment and/or based on the Manager s view in order to take advantage of the short term market inefficiencies in different asset classes and to navigate changing markets with the objective of achieving sustainable, long term positive returns. The frequency of trading will depend on the securities market conditions. The portfolio construction process is research driven with extensive bottom-up fundamental analysis coupled with top down economic and sector analysis. In identifying investable listed companies, the Manager relies on fundamental research where the financial strength including track records, the company s prospects, business operation and top management of the companies are considered. In addition, prospects for the economies and sectors in which the companies operate are also assessed. The focus is on public-listed companies with growth prospects and/or having forecast dividend yield of 3.0% per annum or above over medium to long term to optimize the total returns of the Fund. Other valuation measures include price to earnings (PE), PE to growth, discounted cash flow, price to revalued net asset value and price to book depending in which sector the companies operate and whether the operations are perpetual or for a defined period. Analysis are also made on revenue growth, profit margins, sustainability of earnings, balance sheet and cash flow. The non-equity portion of the Fund will be invested in sukuk, Islamic money market instruments, Islamic deposit placements and/or other permitted investments. Where investment climate is deemed to be unfavourable and weakness in equity is expected, the Fund will raise its holdings in sukuk, Islamic money market instruments and/or Islamic deposit placements. 51

60 2016/2017 MASTER PROSPECTUS For investment in sukuk, credit evaluation and profit/interest rate direction are the most critical risk factors to be considered. As for credit evaluation, the fund manager set stringent investment criteria in assessing sukuk, covering mainly the nature of business, management, cash flow, gearing level and collateralization. In case the Fund invests in such instrument, only investment grade sukuk rated by either RAM or MARC will be considered. To be prudent, the Manager adopts a strategy by:- i) selecting only instruments with a minimum credit rating of A2 as per the rating scale of RAM or its equivalent for long term instruments and P2 or its equivalent for short term instruments; and/or ii) having a longer or shorter duration of debt instruments depending on the expected direction of the KLIRR. For Islamic money market instruments and/or Islamic deposit placement the selection will be based on criteria such as liquidity, prevailing rate and tenure. The short-term nature of the sukuk, Islamic money market instruments and/or Islamic deposit placements will allow the Manager to easily switch to equities when the stock market is favourable. Asset Allocation Asset Class Shariah-compliant equity and equity-related securities Islamic money market instruments, Islamic deposit placements, sukuk and/or other permitted investments. % of Fund s NAV Minimum 0% and maximum 100% Minimum 0% and maximum 100% Depending on the market conditons as analyzed by the Manager. Risks of Investing in the Fund Please refer to Chapter 4 for detailed explanation of the risks involved. Risk Management Please refer to Section 5.7 for detailed explanation of risk management strategies employed by the Manager. Performance Benchmark Two (2) times the performance of a one-year adjusted average rate of the Kuala Lumpur Islamic Reference Rate (KLIRR). The performance of the Fund will be benchmarked using the absolute return approach computed as below:- Assuming the KLIRR s one-year adjusted average rate was 3% per annum, the performance benchmark for the Fund would be 6%, derived from: = 2 X one-year adjusted average rate of KLIRR, for the period under review = 2 X 3% = 6% The KLIRR is the daily average of the Islamic Interbank rates and updated daily at a.m. (Malaysian business hour). You may obtain the information on the one-year KLIRR through BNM website at Permitted Investments Please refer to Section 5.8 for details. Investment Restrictions and Limits Please refer to Section 5.9 for details. Valuation of Investments Please refer to Section 5.10 for details. 52

61 MASTER PROSPECTUS 2016/ BALANCED FUND PMB SHARIAH BALANCED FUND Fund Profile Category of Fund Type of Fund Balanced (Shariah) Growth & Income General Information The Fund was launched on 22 October 1977 as Kumpulan Modal Bumiputera Yang Kesembilan for Bumiputera investors. It was opened to the public following its re-launch as ASM Tanjung Piai Balanced Fund on 6 December 1997 with a new investment objective as a balanced fund. It was renamed ASM Balanced Fund on 26 June Unit Holders approved on 19 July 2012 the change of the Fund s investment objective, making it a Shariah-compliant balanced fund. The Fund was renamed PMB Shariah Balanced Fund on 15 January It assumed its current name on 28 April Investment Objective The objective of the Fund is to provide investors with an opportunity to earn regular income and capital growth in the medium to long term through investment in Shariah-compliant securities. Note: Any material changes to the investment objective of the Fund require Unit Holders approval. Investment Strategy The Fund shall invest primarily in a diversified portfolio that includes Shariah-compliant equity and equity related securities, Islamic money market instruments, Islamic deposit placements, sukuk and/or other permitted investments in Malaysia. The portfolio construction process is research driven with extensive bottom-up fundamental analysis coupled with top down economic and sector analysis. In identifying investable listed companies, the Manager relies on fundamental research where the financial strength including track records, the company s prospects, business operation and top management of the companies are considered. In addition, prospects for the economies and sectors in which the companies operate are also assessed. The focus is on public-listed companies with growth prospects and/or having forecast dividend yield of 3.0% per annum or above over medium to long term to optimize the total returns of the Fund. Other valuation measures include price to earnings (PE), PE to growth, discounted cash flow, price to revalued net asset value and price to book depending in which sector the companies operate and whether the operations are perpetual or for a defined period. Analysis are also made on revenue growth, profit margins, sustainable earnings, balance sheet and cash flow. In view of its investment objective, the designated fund manager will trade the securities depending on the securities market conditions. For investment in sukuk, credit evaluation and profit/interest rate direction are the most critical risk factors to be considered. As for credit evaluation, the fund manager set stringent investment criteria in assessing sukuk, covering mainly the nature of business, management, cash flow, gearing level and collateralization. In case the Fund invests in such instrument, only investment grade sukuk rated by either RAM or MARC will be considered. To be prudent, the Manager adopts a strategy by:- i) selecting only instruments with a minimum credit rating of A2 as per the rating scale of RAM or its equivalent for long term instruments and P2 or its equivalent for short term instruments; and/or ii) having a longer or shorter duration of debt instruments depending on the expected direction of the KLIRR. Under normal circumstances, allocation to equity and equity-related securities ranges from 40% to 60% of the NAV of the Fund. The balance will be invested in Islamic money market instruments, Islamic deposit placements, sukuk and/other permitted investments. 53

62 2016/2017 MASTER PROSPECTUS Asset Allocation Asset Class Shariah-compliant equity and equity-related securities Islamic money market instruments, Islamic deposit placements, sukuk and/other permitted investments. % of Fund s NAV Minimum 40% and maximum 60% The remaining balance of the Fund s NAV not invested in the above. Temporary Defensive Positions Please refer to Section 5.6 for detailed explanation. Risks of Investing in the Fund Please refer to Chapter 4 for detailed explanation of the risks involved. Risk Management Please refer to Section 5.7 for detailed explanation of risk management strategies employed by the Manager. Performance Benchmark A combination of the FBMSHA on the equity performance and a one-year adjusted average rate of the Kuala Lumpur Islamic Reference Rates (KLIRR) for the sukuk, Islamic money market instruments, Islamic deposit placements and/or other permitted investment performance, based on a 50:50 ratio on the basis that the Fund is a balanced unit trust fund and is expected to have a balanced asset allocation in the long term. Assuming the FBMSHA gave a return of 10% during a year under review and the average KLIRR was 3% per annum, the benchmark return for the Fund would be 6.5%, derived from: 50% of the performance of FBMSHA + 50% of the performance of KLIRR = (50% x 10%) + (50% x 3%) = 5.0% + 1.5% = 6.5% FBMSHA is an index comprising the constituents of the FBM EMAS that are Shariah-compliant according to the SAC screening methodology. KLIRR is the daily average of Islamic interbank rates and updated daily at a.m. (Malaysian business hour). You may obtain the information on the FBMSHA from the Bursa Malaysia website and major daily newspapers while the one year adjusted average rate of the KLIRR through Bank Negara Malaysia (BNM) website. Permitted Investments Please refer to Section 5.8 for details. Investment Restrictions and Limits Please refer to Section 5.9 for details. Valuation of Investments Please refer to Section 5.10 for details. 54

63 MASTER PROSPECTUS 2016/ MONEY MARKET FUND PMB SHARIAH CASH MANAGEMENT FUND Fund Profile Category of Fund Type of Fund Money Market (Shariah) Income General Information The Fund was launched on 1 November 1969 as Kumpulan Modal Bumiputera Yang Ketiga for Bumiputera investors. Unit Holders approved on 5 May 2005 the change of the investment objective of the Fund into an Islamic money market fund. As a result, the name of the Fund was changed to ASM Syariah Money Market Fund. The Fund changed its name again on 5 April 2012 to ASM Shariah Cash Management Fund while still maintaining its objective but with additional features. It assumed its current name on 28 April Investment Objective The objective of the Fund is to provide investors with high degree of liquidity while maintaining capital stability through investments primarily in Shariah approved money market instruments and debt securities. Note: Any material changes to the investment objective of the Fund require Unit Holders approval. Investment Strategy The Fund is essentially managed to provide liquidity to meet the near and short term cash flow requirements of its Unit Holders while providing returns. Its investments are largely confined to Islamic money market instruments, Islamic deposit placements and sukuk issued in Malaysia that mature within 365 days. Nevertheless the Fund can invest up to 10% of its NAV in Islamic money market instruments, Islamic deposit placements or sukuk with maturity period exceeding 365 days but not longer than 732 days. The selection of the Islamic money market instruments will be based on criteria such as liquidity, diversification and tenure. The Manager adopts a prudent strategy in forming the portfolio of Islamic money market instruments which is in accordance with the Fund s investment objective and the Manager s assessment of investment prospects in line with the underlying profit/interest rate level and economic outlook. The Manager will review the asset allocation from time to time to facilitate redemption requests while optimizing income from investments. The Fund shall invest up to 100% of its NAV in near term Islamic money market instruments, Islamic deposit placement and/or sukuk that are liquid and conform to the Shariah principles. Notwithstanding the Fund can invest up to 10% for short dated sukuk maturing between 365 and 732 days. Asset Allocation Asset Class Islamic money market instruments, Islamic deposit placements and/or other permitted investments:- % of Fund s NAV 100% - maturing within 365 days. Minimum 90% - maturing between 365 and 732 days. Maximum 10% The asset allocation will be reviewed from time to time to facilitate redemption request while optimizing income from investments. 55

64 2016/2017 MASTER PROSPECTUS Risks of the Fund Please refer to Chapter 4 for detailed explanation of the risks involved. Risk Management Please refer to Section 5.7 for detailed explanation of risk management strategies employed by the Manager. Performance Benchmark BNM Overnight Islamic Interbank Rate The Islamic interbank rate is the daily weighted average rate of the Mudharabah interbank investment at the Islamic Interbank Money Market in Kuala Lumpur, where the individual rates being weighted accordingly by the volume transactions at those rates. You may obtain the information on the Islamic interbank rate by accessing Islamic Interbank Money Market, Bank Negara Malaysia website at Permitted Investments Please refer to Section 5.8 for details. Investment Restrictions and Limits Please refer to Section 5.9 for details. Valuation of Investments Please refer to Section 5.10 for details. Investment in the Fund is not the same as placement in deposits with a financial institution. There are risks involved and investors should rely on their evaluation to assess the merits and risks when investing in the Fund. 56

65 MASTER PROSPECTUS 2016/ SHARIAH-COMPLIANT AND SHARIAH APPROVAL PROCESS All Shariah-compliant funds must at all times and all stages of its operation comply with the Shariah principles. In the first place, the funds must be raised, operated and redeemed, if any, by investor on the basis of contracts which are acceptable by Shariah. In terms of investments, there are two significant Shariah-compliant matters that need to be adhered to. First is the securities to be invested and secondly the companies of which the securities are issued. In making investments, both securities and companies must be Shariah-compliant. Capital Market Instruments Since the establishment of the SAC, several capital market instruments have been evaluated and approved; they are: Ordinary shares; Warrants/Transferable Subscription Rights (if the underlying is Shariah-compliant); Call warrants (if the underlying is Shariah-compliant); Non-cumulative preference shares; Redeemable preference shares; Crude palm oil futures contracts; Crude palm kernel oil futures contracts; Khazanah zero-coupon sukuk; Single Stock Futures (if the underlying is Shariah-compliant); and Futures Contract Index (if the index component is made up of Shariah-compliant securities) As for the Shariah-compliant funds, investments in any of the above instruments depend on their respective objective and investment strategy and the capital instruments that are allowed to be used to achieve the objective. Shariah Adviser The Guidelines stipulate that Shariah-compliant unit trust funds are required to appoint a Shariah committee or Shariah adviser. At PMB Investment, we have appointed a Shariah Adviser whose details are in Section The investment portfolio of Shariah-compliant unit trust funds must invest only in Shariah-compliant securities/instruments. As a general rule, for investment in equities, we use the approved List of Shariahcompliant securities issued by the SAC (Approved List), which is currently updated in May and November every year. However, in cases where the status of securities has not been determined by the SAC due to reasons such as initial public offer, the interim status of the securities will be determined by our Shariah Adviser in accordance with the SAC screening methodology until such time when the SAC issues its ruling on the securities. When investing in Islamic money market instruments, Islamic deposit placements, sukuk and/or other permitted investments for Shariah-compliant unit trust funds, they must also be Shariah-compliant as determined by the Shariah Advisory Council of Bank Negara Malaysia and/or the SAC, as the case may be. Classification of Shariah Securities by the SC For companies listed on Bursa Malaysia, the Funds investments must be strictly confined to the companies in the prevailing Approved List. In classifying the securities listed on Bursa Malaysia, the SAC received input and support from the SC. The SC gathered information on the companies from various sources, such as company annual financial reports, company responses to survey forms and through inquiries made to the respective company s management. The SAC adopts a two-tier quantitative approach, which applies the business activity benchmarks and the financial ratio benchmarks, in determining the Shariah status of the listed securities. Hence, the securities will be classified as Shariah-compliant if they are within the business activity benchmarks and the financial ratio benchmarks. 57

66 2016/2017 MASTER PROSPECTUS Quantitative Assessment Shariah Screening Methodology Business Activity Benchmarks Business activity benchmarks 5% Conventional banking and insurance, gambling, liquor and liquor related activities, pork and pork related activities, non-halal food and beverages, Shariah non-compliant entertainment, tobacco, interest income from conventional accounts and instruments, (including interest income awarded arising from a court judgement or arbitrator and dividends from Shariah non-compliant investments) and other activities deemed non-compliant according to Shariah. 20% Hotel and resort operations, share trading, stockbroking business, rental received from Shariah non-compliant activities and other activities deemed non-compliant according to Shariah. Financial Ratio Benchmarks 33% i. Cash over total assets: Cash only includes cash placed in conventional accounts and instruments, whereas cash placed in Islamic accounts and instruments will be excluded from the calculation. ii. Debt over total assets: Debt only includes interest bearing debt whereas Islamic financing or sukuk is excluded from the calculation. Each ratio, which is intended to measure riba and ribabased elements within a company s statements of financial position, must be less than 33%. In addition to the above two-tier quantitative criteria, the SAC also takes into account the qualitative aspect which involves public perception or image of the company s activities from the perspective of Islamic teaching. Special Purpose Acquisition Companies (SPACs) In classifying securities of SPACs, the SAC considers the following criteria: (i) (ii) (iii) The proposed business activity should be Shariah compliant; The entire proceeds raised from the initial public offering should be placed in Islamic accounts; and In the event that the proceeds are invested, the entire investment should be Shariah compliant. Shariah-compliant securities include ordinary shares and warrants (issued by the companies themselves). This means that warrants are classified as Shariah-compliant securities provided the underlying shares are also Shariah compliant. On the other hand, loan stocks and bonds are Shariah non-compliant securities unless they are structured based on the SAC s approved Shariah rulings, concepts and principles. 58

67 MASTER PROSPECTUS 2016/2017 Timing for disposal of Shariah non-compliant securities (i) Shariah-compliant securities which are subsequently re-classified as Shariah non-compliant These refer to securities which were earlier classified as Shariah-compliant but due to certain factors such as changes in the companies business operations and financial positions, are subsequently reclassified as Shariah non-compliant. In this regard, if on the date this updated list takes effect (27 November 2015), the respective market price of Shariah non-compliant securities exceeds or is equal to the investment cost, investors who hold such securities must dispose them off. Any dividends received up to the date of the announcement and capital gains arising from the disposal of Shariah non-compliant securities on the date of the announcement can be kept by the investors. However, any dividends received and excess capital gain from the disposal of Shariah non-compliant securities after the date of the announcement should be channeled to baitulmal and/or charitable bodies.* On the other hand, investors are allowed to hold their investment in the Shariah non-compliant securities if the market price of the said securities is below the investment cost. It is also permissible for the investors to keep the dividends received during the holding period until such time when the total amount of dividends received and the market value of the Shariah non-compliant securities held equal the investment cost. At this stage, the Fund will dispose of their holding. In addition, during the holding period, investors are allowed to subscribe to: (a) any issue of new securities by a company whose Shariah non-compliant securities are held by the investors, for example rights issues, bonus issues, special issues and warrants (excluding securities whose nature is Shariah non-compliant e.g. loan stocks); and (b) Shariah-compliant securities of other companies offered by the company whose Shariah noncompliant securities are held by the investors, on condition that they expedite the disposal of the Shariah non-compliant securities. (ii) Shariah non-compliant securities The SAC advises investors who invest based on Shariah principles to dispose off any Shariah noncompliant securities which they presently hold, within a month of knowing the status of the securities. Any gain made in the form of capital gain or dividend received before or after the disposal of the securities has to be channeled to baitulmal and/or charitable bodies. The investor has a right to retain only the investment cost. Note: Investment cost may include brokerage cost or other related. Foreign Shariah-compliant Securities For investment in foreign securities, the Funds are only allowed to invest in securities which are on the Approved List of the Dow Jones Islamic Market Index (DJIM). With regard to the issue of delisting of Shariah compliant securities from DJIM and Shariah non-compliant foreign securities, the Funds are to abide by the same processes as laid down by the SAC. In the rare event that the Fund wishes to invest in foreign securities not covered by DJIM, the Funds must submit to the Shariah Adviser the latest information pertaining to business activities, complete financial statements and other related information on the relevant company to enable the Shariah Adviser to carry out stock screening. The decision of the Shariah Adviser is final. 59

68 2016/2017 MASTER PROSPECTUS 5.6 TEMPORARY DEFENSIVE POSITION Applicable to PMB Al-Aiman, PMB Mutiara, PMB Bestari, PMB SAF, PMB SGF, PMB SMCF, PMB SDF and PMB STEF The Manager may also take temporary defensive positions that may be inconsistent with the Fund s principal strategy in attempting to respond to adverse economic and/or political conditions or potential sharp downturn in the equities market that may likely lead to a substantial capital loss. In such circumstances, the Manager may reallocate up to 100% of the Fund s equity investments into other permitted investments, including sukuk, Islamic money market instruments and/or Islamic deposit placements. Applicable to PMB SPF The Manager may also take temporary defensive positions that may be inconsistent with the Fund s main strategy in attempting to respond to adverse economic and/or political conditions or potential sharp downturn in the equities market that may be likely leading to substantial capital loss. In such circumstances, the Manager may reallocate up to 50% of the Fund s equity investments into other permitted investments, including sukuk, Islamic money market instruments and/or Islamic deposit placements. Applicable to PMB SBF The Manager may also take temporary defensive positions that may be inconsistent with the Fund s main strategy in attempting to respond to adverse political and/or economic conditions or potential sharp downturn in the equities market that likely lead to a substantial capital loss. Under an extremely bearish market condition the Fund may reduce its equity and equity-related exposure to below 40%. 5.7 RISK MANAGEMENT STRATEGIES Applicable to PMB Al-Aiman, PMB Mutiara, PMB Bestari, PMB SAF, PMB SGF, PMB SMCF, PMB SPF, PMB SDF and PMB STEF The Manager adopts an active investment strategy to manage the risks of equity investment of the Fund. The market volatility may lead to capital loss which affects the Fund s return. Stock selection and diversification of investment in equity securities are keys to mitigating the overall risk of the Fund. The equity market risk of the Fund is prudently managed through the following strategies:- Stock selection whereby the Manager employs fundamental approach to ensure selection of quality Shariah-compliant equity which takes into account information gathered during company visits, potential income and earnings growth, management quality and past track records of the companies are considered; and Diversification into different sectors that gives the Manager flexibility to move the Fund s equity exposure actively within the asset allocation range depending on capital market conditions. The flexibility allows the Manager to remain invested during market upturns or liquidate investments to preserve its capital during the market downturns. To manage the stock specific risk of the Fund, in-depth company analysis is conducted. Stock selection is based on stringent investment criteria which include the company s financial strength, business operations and management and good corporate governance. The Fund also takes into account trading liquidity to manage the stock specific risk. For investment in sukuk, credit evaluation and profit rate direction are the most critical risk factors to be considered. As for credit evaluation, the fund manager has set stringent investment criteria in assessing sukuk, covering mainly the nature of business, cash flow, gearing level, management and collateralization. In case the Fund invests in such instrument, only investment grade sukuk rated by either RAM or MARC will be considered. As for the profit/interest rate direction, the expected direction of KLIRR will be taken into consideration. 60

69 MASTER PROSPECTUS 2016/2017 In addition, regular reporting to and consulting with the Investment Committee members are held at periodical meetings. The reporting to the Investment Committee consists of, amongst others, the review on the performance of the Fund and the relevant markets, immediate and future investment approach and asset allocation strategy, and compliance status. The Manager may take a temporary defensive position as stated in Section 5.6 above. Applicable to PMB SIF The Manager employs reasonable steps in managing the risks through close monitoring of the economic and investment climate, market development and industry updates, and making appropriate adjustments to the Fund s asset allocation to minimize the adverse impact on any particular stock or the market as a whole. However as the intention of the Fund is to track the FBMSHA, the Fund will invest a minimum of 80% in equity in any adverse condition. In addition, regular reporting to and consulting with the Investment Committee members are held at periodical meetings. The reporting to the Investment Committee consists of, amongst others, the review on the performance of the Fund and the relevant markets, immediate and future investment approach and asset allocation strategy, and compliance status. Applicable to PMB STF The Manager adopts an active trading strategy to manage the risks of equity investment of the Fund. The price fluctuation caused by the market volatilities may lead to capital loss which affects the return of both equity and non-equity investments. The Fund s market risk is prudently managed through tactical asset allocation approach based on fundamental and technical analysis. The asset allocation exposure may differ from time to time depending on the capital market conditions. The Manager may reallocate up to 100% of the Fund s equity investments into other Shariah-compliant securities including Islamic money market instruments and/or Islamic deposits and where applicable sukuk. For equity investment, in-depth company analysis is conducted. Stock selection is based on stringent investment criteria which include the company s financial strength, business operations and management. The valuations are thoroughly analyzed to ensure the Fund invests in companies that are viable and may produce return in the long term. The Fund also takes into account diversification and trading liquidity to manage the stock specific risk. For non-equity investment in sukuk, credit evaluation and profit/interest rate direction are the most critical risk factors to be considered. As for credit evaluation, the fund manager has set stringent investment criteria in assessing sukuk, covering mainly the nature of business, cash flow, gearing level, management and collateralization. The Fund only invests in investment grade sukuk rated either by RAM or MARC. For profit/interest rate risk management, the Fund s sukuk exposure will be managed by adjusting its average tenure. If the profit/interest rate is expected to go up in the future, the Fund will invest in shorter tenure instruments to mitigate the impact of decrease in sukuk s prices. In addition, regular reporting and consulting with the Investment Committee members are held at periodical meetings. The reporting to the Investment Committee consists of, amongst others, their view on the performance of the relevant markets and the Funds, immediate and future investment strategies and asset allocations, and compliance status. Applicable to PMB SBF The Manager adopts an active investment strategy to manage the risks of equity investment of the Fund. The market volatility may lead to capital loss which affects the Fund s return. Stock selection and diversification of investment in equity securities are keys to mitigating the overall risk of the Fund. The equity market risk of the Fund is prudently managed through the following strategies:- Stock selection whereby the Manager employs a fundamental approach to ensure selection of quality Shariah-compliant equity which takes into account information gathered during company visits, potential income and earnings growth, management quality and past track records of the companies are considered; and 61

70 2016/2017 MASTER PROSPECTUS The asset allocation exposure may differ from time to time depending on the condition of the capital markets. Asset and sector allocations are based on thorough macroeconomic analysis. The Fund s equity exposure may increase to a maximum of 60% on the expectation that the stock market has a potential to appreciate in the future. On a temporary defensive move, the Fund s equity exposure may be reduced to 40% or below if the market is expected to decline. To manage the stock specific risk of the Fund, in-depth company analysis is conducted. Stock selection is based on stringent investment criteria which include the company s financial strength, business operations and management and good corporate governance. The Fund also takes into account trading liquidity to manage the stock specific risk. For investment in sukuk, credit evaluation and profit rate direction are the most critical risk factors to be considered. As for credit evaluation, the fund manager set stringent investment criteria in assessing sukuk, covering mainly the nature of business, management, cash flow, gearing level and collateralization. In case the Fund invests in such instrument, only investment grade sukuk rated by either RAM or MARC will be considered. As for the profit/interest rate direction, the expected direction of KLIRR will be taken into consideration. The structure of the Fund is such that it is confined to instruments of short duration to maturity in order to mitigate the impact of fluctuation in profit/interest rate on the performance of the Fund over the short term while the credit risks it may face are mitigated by strict limits on concentration of investments and due diligence in the credit assessments by ensuring investment grade credit ratings as mentioned above. In addition, regular reporting and consulting with the Investment Committee members are held at periodical meetings. The reporting to the Investment Committee consists of, amongst others, their view on the performance of the relevant markets and the Funds, immediate and future investment strategies and asset allocations, and compliance status Applicable to PMB SCMF The Fund s credit risk is prudently managed through exercising prudent selection of investments. A thorough study on the credit worthiness of the issuer of the sukuk and the securities themselves will be undertaken by the Manager. The Fund will invest in quality short term to medium term instruments with minimum short term local credit rating of P2 by RAM or MARC2 by MARC or minimum long term rating of A2 by RAM or A by MARC that conform to the principles of Shariah. Short term instruments can be defined as instruments which mature within 365 days whilst medium term instruments can be defined as instruments which mature over 365 days but not more than 2 years. Where the rating falls below the required minimum rating, the designated fund manager will dispose of the instrument. For investment in sukuk, credit evaluation and profit/interest rate direction are the most critical risk factors to be considered. As for credit evaluation, the fund manager set stringent investment criteria in assessing sukuk, covering mainly the nature of business, management, cash flow, gearing level and collateralization. In case the Fund invests in such instrument, only investment grade sukuk rated by either RAM or MARC will be considered. As for the profit/interest rate direction, the expected direction of KLIRR will be taken into consideration. The structure of the Fund is such that it is confined to instruments of short duration to maturity in order to mitigate the impact of fluctuation in profit/interest rate on the performance of the Fund over the short term while the credit risks it may face are mitigated by strict limits on concentration of investments and due diligence in the credit assessments by ensuring investment grade credit ratings as mentioned above. In addition, regular reporting and consulting with the Investment Committee members are held at periodical meetings. The reporting to the Investment Committee consists of, amongst others, the review on the performance of the Fund and the relevant markets, immediate and future investment approach and asset allocation strategy, and compliance status. 62

71 MASTER PROSPECTUS 2016/ PERMITTED INVESTMENTS The investments made by the Funds must conform with Shariah principles which generally exclude conventional banking, insurance and financial institutions; gambling/gaming; alcoholic beverages; non-halal food products; interest-bearing money market instruments; and other securities or instruments as determined by the Shariah Adviser. Unless otherwise prohibited by the relevant authorities or any relevant law and provided always that there is no inconsistency with the objectives of the Fund, the Fund must invest strictly in the investments/securities which comply with the Shariah principles and approved by the Shariah Adviser, the SAC or an international Shariah standard setting body (if applicable). The Funds currently do not invest in unlisted securities (except entitlements received from listed companies in the existing portfolio), in overseas companies, securities lending and in the futures market. Nevertheless, the Funds may invest in these securities in the future. For overseas investment, the value of the investment will be limited to a maximum of 30% of the Fund s NAV. Applicable to PMB Al-Aiman, PMB Mutiara, PMB Bestari, PMB SAF, PMB SGF, PMB SMCF, PMB SIF, PMB SPF, PMB SDF, PMB STEF, PMB STF and PMB SBF Unless otherwise prohibited by the relevant authorities or any relevant laws and provided always that there is no inconsistency with the objectives of the Fund, the Fund may invest in the following: a. securities listed on the Bursa Malaysia or any other stock exchange approved by the Minister under the CMSA and any exempt stock exchange declared by the Minister under the CMSA; b. securities not listed for trading in a stock market of a stock exchange approved, or an exempt stock market declared by the Minister under the CMSA, but have been approved for such listing and offered directly to the Fund by the issuer or any entitled party; c. securities not listed for trading in a stock market of a stock exchange approved, or an exempt stock market declared by the Minister under the CMSA, which are offered directly to the Fund by the issuer and fulfill all the conditions set out in the Guidelines; d. foreign securities listed on the foreign stock exchange(s) subjects to the restrictions and rules imposed by Bank Negara Malaysia and/or SC; e. other Collective Investment Schemes (CIS), provided that: i. the CIS must be regulated by a regulatory authority; which is for the fund constituted in Malaysia must be approved by the SC and fund constituted outside Malaysia to be registered/ authorized/approved by the relevant regulatory authority in its home jurisdiction; ii. operate on the principle of prudent spread of risk and its investment do not diverge from the general investment principles; iii. no cross-holding between the Fund and the target Fund for Fund operated by the same management company; and iv. all initial charges on the target fund are waived. f. futures contracts and options traded in a futures market of an exchange company approved, or an exempt futures market declared, by the Minister under the CMSA, must be for hedging purposes only; g. participation in the lending of securities within the meaning of the Guidelines of Securities Borrowing and Lending issued by SC (as amended from time to time) when permitted by the SC and/or other relevant authorities; h. an eligible money market (as defined in the Guidelines on including investments in an Eligible Market for short-term papers such as Malaysian Government Securities, treasury bills, negotiable instruments of deposit, repurchase agreements, Cagamas mortgage bonds, Bank Negara bills); i. an eligible over-the-counter private debt securities market (as defined in the Guidelines); 63

72 2016/2017 MASTER PROSPECTUS j. securities that are traded in or under the rules of an Eligible Market which fulfill all the conditions set out in the Guidelines; k. warrants, provided that the warrants carry the right in respect of a security traded in or under the rules of an Eligible Market. l. derivatives: i. consist of derivatives that are traded on exchange and traded over-the-counter; ii. the underlying instruments should consist of permissible investments and include indices, deposit rates and foreign exchange rates. m. Structured Products, where the Manager must ensure that: i. the counter party is an eligible issuer (for structured products issued in Malaysia) or an issuer regulated by the relevant regulatory authority (for structured products issued outside Malaysia); ii. the counter-party has a minimum long term rating by any domestic rating agencies. n. deposits with financial institutions. Applicable to PMB SCMF Subject to any conditions stipulated by the SC, PMB SCMF only invests primarily in Islamic short-term debentures, short-term Islamic money market instruments and Islamic short-term deposits. 5.9 INVESTMENT RESTRICTIONS AND LIMITS Applicable to PMB Al-Aiman, PMB Mutiara, PMB Bestari, PMB SAF, PMB SGF, PMB SMCF, PMB SIF, PMB SPF, PMB SDF, PMB STEF, PMB STF and PMB SBF The investments limits for the Funds are in line with the Guidelines as follows:- Exposure Limits The value of a Fund s investment in unlisted securities must not exceed 10% of a Fund s NAV. Investment Spread Limits a. The value the Fund s investment in ordinary shares issued by any single issuer must not exceed 10% of the Fund s NAV. For PMB SIF whose principle objective is to track or replicate an index, the single issuer limit may be exceeded provided that the investment in any component securities does not exceed its respective weightings in the underlying index. b. The value of the Fund s investment in transferable securities and money market instruments issued by any single issuer must not exceed 15% of the Fund s NAV. c. The value of the Fund s placement in deposit placements with any single institution must not exceed 20% of the Fund s NAV. d. For investments in derivatives: i. the exposure to the underlying assets must not exceed the investment spread limits being stipulated under these limits; and ii. 64 the value of a Fund s over-the counter (OTC) derivative transaction with any single counter-party must not exceed 10% of the Fund s NAV. e. The value of the Fund s investment in structured products issued by a single counter-party must not exceed 15% of the Fund s NAV. f. The aggregate value of the Fund s investment in transferable securities, money market instruments, deposits, OTC derivatives and structured products issued by or placed with (as the case may be) any single issuer/institution must not exceed 25% of the Fund s NAV. g. The value of the Fund s investment in units/shares of any CIS must not exceed 20% of the Fund s NAV.

73 MASTER PROSPECTUS 2016/2017 h. The value of the Fund s investment in transferable securities and money market instruments issued by any group of companies must not exceed 20% of the Fund s NAV. For PMB SIF whose principle objective is to track or replicate an index, the single group limit may be exceeded provided that the investment in any component securities does not exceed its respective weightings in the underlying index. Investment Concentration Limits a. The Fund s investment in transferable securities (other than debentures) must not exceed 10% of the securities issued by any single issuer. b. The Fund s investments in debentures must not exceed 20% of the debentures issued by any single issuer. c. The Fund s investment in CISs must not exceed 25% of the units/shares in any one CIS. d. The Fund s investment in money market instruments must not exceed 10% of the instruments issued by any single issuer. (Note: This limit does not apply to money market instruments that do not have a pre-determined issue size.) Applicable to PMB SCMF Exposure Limits a. The value of the Fund s investment in permitted investments must not be less than 90% of the Fund s NAV. b. The value of the Fund s investment in permitted investments which have a remaining maturity period of not more than 365 days must not be less than 90% of the Fund s NAV. c. The value of the Fund s investment in permitted investments which have a remaining maturity period of more than 365 days but fewer than 732 days must not exceed 10% of the Fund s NAV. Investment Spread Limits a. The value of the Fund s investment in debentures and money market instruments issued by any single issuer must not exceed 20% of the Fund s NAV. b. The single issuer limit in (a) may be increased to 30% if the debentures are rated by any domestic or global rating agency to be of the best quality and offer highest safety for timely payment of dividend and principal. c. The value of the Fund s placement in deposits with any single financial institution must not exceed 20% of the Fund s NAV. d. The value of the Fund s investment in debentures and money market instruments issued by any group of companies must not exceed 30% of the Fund s NAV. e. Where applicable, the core requirements for non-specialised funds shall apply for any other type of investments. Investment Concentration Limits a. The Fund s investment in debentures must not exceed 20% of the securities issued by any single issuer. b. The Fund s investment in money market instruments must not exceed 20% of the instruments issued by any single issuer. c. The Fund s investment in collective scheme must not exceed 25% of the units/shares in any CIS. 65

74 2016/2017 MASTER PROSPECTUS Allowance in Excess of Investment Limits The above investment restrictions and limits have at all times to be complied with based on the most up-todate valuation of the investments and instruments of the Fund. However, a 5% allowance in excess of any restriction or limit may be permitted where the restriction or limit is breached through an appreciation or depreciation of the NAV of the Fund (whether as a result of an appreciation or depreciation in value of the investments or as a result of repurchase of Units or payment made from the Fund). If the relevant limit is breached, due to the appreciation or depreciation of the NAV of the Funds, no further acquisition of the particular securities involved shall be made. We shall, within a reasonable period of not more than 3 months from the date of breach, take all necessary steps and actions to rectify the breach VALUATION OF INVESTMENTS In respect of the investments of the Funds, it is our policy for the valuation point for the assets of the Fund to be valued on a daily basis at the end of business day, in accordance with their respective class and at all times in compliance with the Guidelines. Listed Securities The valuation of securities listed on an Eligible Market will be based on the market price. However, if i) a valuation based on the market price does not represent the fair value of the securities, for example during abnormal market conditions; or ii) no market price is available, including in the event of a suspension in the quotation of the securities for a period exceeding 14 days, or such shorter period as agreed by the trustee, then the securities should be valued at fair value, as determined in good faith by the Manager, based on the methods or bases approved by the Trustee after appropriate technical consultation. Unlisted Securities The valuation of unlisted securities will be based on fair value as determined in good faith by the Manager, based on the methods or bases approved by the Trustee after appropriate technical consultation. Unlisted Sukuk Denominated in Ringgit Malaysia Fund investing in unlisted sukuk denominated in Ringgit Malaysia will be based on price quoted by a Bond Pricing Agency (BPA) registered with the SC. Where the Manager is of the view that the price quoted by BPA for a specific sukuk differs from the market price by more than 20 basis points, the Manager may use the market price, provided that the Manager- i) records its basis for using a nonbpa price; ii) obtains necessary internal approvals to use the non-bpa price; and iii) keeps an audit trail of all decisions and basis for adopting the market yield. Other Unlisted Sukuk The valuation on other unlisted sukuk will be based on fair value by reference to the average indicative yield quoted by three independent and reputable institutions. Unlisted Collective Investment Scheme The value of the Units will be based on the last published repurchase price. Islamic Money Market Instruments The valuation for money market instrument are valued at market yields based on the remaining days to maturity. 66

75 MASTER PROSPECTUS 2016/2017 Islamic Deposit Placements Deposits placed with banks and other financial institutions are valued each day by reference to the nominal value and the profit accrued thereon for the relevant period. Foreign Securities and Assets The valuation for foreign securities and asset of the Fund that denominated in foreign currency (if any) are translated on a daily basis to Ringgit Malaysia using the bid foreign exchange rate quoted by either Reuters or Bloomberg at 4:00 p.m. (United Kingdom time) which is equivalent to 11 p.m or 12 a.m (Malaysian time) on the same day, or at such time as stipulated in the investment management standards issued by the FIMM. Any Other Investment The valuation on any other investment will be based on fair value as determined in good faith by the Manager, on methods or bases which have been verified by the auditor of the Fund and approved by the Trustee POLICY ON GEARING The Funds are prohibited from borrowing other assets (including borrowing securities within the meaning of Guidelines on Securities Borrowing and Lending) in connection with their activities. However, the Funds may source for Shariah-compliant financing for the purpose of meeting repurchase requests for units subject to the following (a) The financing is only on a temporary basis and not persistent; (b) The financing period should not exceed one month; (c) The aggregate financing of each Fund should not exceed 10% of the Fund s NAV at the time the financing is incurred; and (d) The Fund may only take financing from Islamic financial institutions. 67

76 2016/2017 MASTER PROSPECTUS 6. FUND PERFORMANCE BASIS OF FUND PERFORMANCE COMPUTATION The calculation for Total Return, Average Total Return and Annual Total Return of the Funds is based on computation methods of Lipper and sourced from Lipper for Investment Management (Lipper IM). The basis of computation is on NAV - to - NAV or Bid - to - Bid, income re-invested, over a specified period. Lipper IM is an application that provides comprehensive fund information and performance, fund ratings, analytic tools and charting. Information about Lipper IM can be obtained from Past performance of the Fund is not an indication of its future performance. 6.1 EQUITY FUNDS PMB DANA AL-AIMAN Average Total Return Fund / Benchmark For The Period Ended 31 May 2015# 1 Year 3 Years 5 Years 10 Years PMB Al-Aiman 0.09% 4.89% 6.63% 5.77% FBMSHA (4.26%) 5.48% 8.04% 8.23% Source: Lipper Total Return Fund/Benchmark For The Period Ended 31 May 2015# 1 Year 3 Years 5 Years 10 Years PMB Al-Aiman 0.09% 15.41% 37.90% 75.32% FBMSHA (4.26%) 17.35% 47.24% % Source: Lipper 1-Year Fund Performance Review For the 1-year period ended 31 May 2015, PMB Al-Aiman registered a total return of 0.09% compared to a return of -4.26% for the benchmark. 68

77 MASTER PROSPECTUS 2016/ Year Fund Performance Review For the 3-year period ended 31 May 2015, PMB Al-Aiman registered a total return of 15.41% compared to a return of 17.35% on its benchmark. 5-Year Fund Performance Review For the 5-year period ended 31 May 2015, total returns of PMB Al-Aiman amounted to 37.90% against the return of 47.24% on the FBMSHA. 69

78 2016/2017 MASTER PROSPECTUS Annual Total Return for the Past 10 Financial Years Ended 31 May# Year PMB Al-Aiman BENCHMARK % (4.26%) % 6.58% % 16.00% % 3.38% % 17.69% % 26.19% 2009 (13.74%) (24.92%) % 1.57% % 37.47% 2006 (0.01%) 8.34% Distribution Highlight Financial Year End # 31 May 15 May Gross Distribution Per Unit - Cash (sen) Net Distribution Per Unit - Cash (sen) *3.00 *3.00 *3.05 *Distribution is in the form of units Portfolio Turnover Ratio times 0.67 times 0.41 times The PTR is marginally higher at 1.07 times as compared with the previous financial year as a result of higher trading activities undertaken by the Fund. Asset Allocation Year Equities 77.20% 75.12% 72.29% Collective Investment Scheme 7.30% 6.64% 5.85% Derivatives 0.01% - - Commercial Note 1.85% - - Deposit Placement & Others 13.64% 18.24% 21.86% The Fund s exposure in equities was higher in 2015 due to the buying activities on selective Shariah-compliant stocks based on their potential to meet the Fund s objective in the medium to long term. # Note: Effective from 28 April 2014, the financial year of PMB Al-Aiman ends on 31 May. Prior to that, the period ended on 15 May. 70

79 MASTER PROSPECTUS 2016/ PMB DANA MUTIARA Average Total Return Fund/Benchmark For The Period Ended 30 June 2015# 1 Year 3 Years 5 Years 10 Years PMB Mutiara (6.83%) 2.10% 3.94% 2.46% FBMSHA (8.80%) 3.53% 6.85% 7.67% Source: Lipper Total Return Fund/Benchmark For The Period Ended 30 June 2015# 1 Year 3 Years 5 Years 10 Years PMB Mutiara (6.83%) 6.43% 21.35% 27.52% FBMSHA (8.80%) 10.96% 39.30% % Source: Lipper 1-Year Fund Performance Review For the 1-year period ended 30 June 2015, PMB Dana Mutiara posted a return of -6.83% compared to a return of -8.80% on its benchmark. 71

80 2016/2017 MASTER PROSPECTUS 3-Year Fund Performance Review For the three-year period ended 30 June 2015, PMB Mutiara registered a total return of 6.43% compared to a return of 10.96% on its benchmark. 5-Year Fund Performance Review For the 5-year period ended 30 June 2015, PMB Mutiara registered a total return of 21.35% compared to a return of 39.30% on its benchmark. Note: Change of benchmark: i) 1 November 2007 FBMSHA (replacement of the KLSI by Bursa Malaysia with the FBMSHA) ii) 5 August 2004 KLSI (change of Fund s investment objective that invest in Shariah-compliant securities) iii) Prior to 5 August 2004 KLCI 72

81 MASTER PROSPECTUS 2016/2017 Annual Total Return For the Past 10 Financial Years Ended 30 June# Year PMB Mutiara BENCHMARK 2015 (6.83%) (8.80%) % 9.10% % 13.57% 2012 (3.74%) 0.57% % 22.60% % 15.93% 2009 (19.67%) (14.21%) 2008 (9.97%) (3.20%) % 45.93% 2006 (7.66%) (1.00%) Distribution Highlight Financial Year End # 30 June 15 June Gross Distribution Per Unit - Cash (sen) Net Distribution Per Unit - Cash (sen) *1.70 * *Distribution is in the form of units. Portfolio Turnover Ratio times 0.75 times 0.47 times The higher PTR over the financial year of 2015 was a result of higher trading activities undertaken by the Fund. Asset Allocation Year Equities 74.66% 73.20% 74.54% Islamic Real Estate Investment Trust (REIT) 3.74% - - Collective Investment Scheme 6.79% 6.14% 5.17% Derivatives % - Deposit Placement & Others 14.81% 20.61% 20.29% The Fund s exposure in equities was higher in 2015 due to the buying activities on selective Shariah-compliant stocks based on their potential to meet the Fund s objective in the medium to long term. # Note: Effective from 28 April 2014, the financial year of PMB Mutiara ends on 30 June. Prior to that, the period ended on 15 June. 73

82 2016/2017 MASTER PROSPECTUS PMB DANA BESTARI Average Total Return Fund/Benchmark For The Period Ended 30 September 2015# 1 Year 3 Years 5 Years 10 Years PMB Bestari (2.14%) 2.24% 2.98% 2.94% FBMSHA (9.83%) 1.58% 4.65% 7.09% Source: Lipper Total Return Fund/Benchmark For The Period Ended 30 September 2015# 1 Year 3 Years 5 Years 10 Years PMB Bestari (2.14%) 6.88% 15.81% 33.69% FBMSHA (9.83%) 4.83% 25.53% 98.40% Source: Lipper 1-Year Fund performance Review For the 1-year period ended 30 September 2015, PMB Bestari posted a return of -2.14% compared to a return of -9.83% on its benchmark. 74

83 MASTER PROSPECTUS 2016/ Year Fund performance Review For the 3-year period ended 30 September 2015, PMB Bestari posted a return of 6.88% compared to a return of 4.83% on its benchmark. 5-Year Fund Performance Review For the 5-year period ended 30 September 2015, PMB Bestari registered a return of 15.81% compared to a return of 25.53% on its benchmark. Note: Change of benchmark: i) 1 November 2007 FBMSHA (replacement of the KLSI by Bursa Malaysia with the FBMSHA) ii) 3 October 2002 KLSI (change of Fund s investment objective that invest in Shariah-compliant securities) iii) Prior to 3 October 2002 KLCI. 75

84 2016/2017 MASTER PROSPECTUS Annual Total Return For the Past 10 Financial Years Ended 30 September# Year PMB Bestari Benchmark 2015 (2.14%) (9.83%) % 6.64% % 9.09% % 15.47% % 11.55% % 8.99% 2009 (2.49%) 10.36% 2008 (0.89%) (7.30%) % 35.02% 2006 (3.27%) 2.71% Distribution Highlight Financial Year End # 30 Sept 15 Aug Gross Distribution Per Unit - Cash (sen) Net Distribution Per Unit - Cash (sen) *1.60 *3.00 *2.50 * Distribution is in the form of units. Portfolio Turnover Ratio times 1.40 times 0.59 times The PTR was lower than the previous year as a result of an decrease in trading activities undertaken by the Fund during the financial year. Asset Allocation Year Equities 63.21% 72.77% 73.25% Investment Collective Scheme 7.14% 6.26% 5.71% Deposit Placement & Others 29.65% 20.97% 21.04% The Fund s exposure in equities was marginally reduced to 63.21% in #Note: Effective from 28 April 2014, the financial year of PMB Bestari ends on 30 September. Prior to that, the period ended on 15 August. 76

85 MASTER PROSPECTUS 2016/ PMB SHARIAH AGGRESSIVE FUND Average Total Return Fund/Benchmark For The Period Ended 31 July 2015# 1 Year 3 Years 5 Years Since Relaunched 21/11/05 PMB SAF 8.27% 18.81% 14.67% 5.99% FBMSHA (7.55%) 3.14% 6.31% 8.16% Source: Lipper Total Return Fund/Benchmark For The Period Ended 31 July 2015# 1 Year 3 Years 5 Years Since Relaunched 21/11/05 PMB SAF 8.27% 67.70% 98.35% 75.79% FBMSHA (7.55%) 9.71% 35.84% % Source: Lipper 1- Year Fund Performance Review For the 1-year period ended 31 July 2015, PMB SAF outperformed its benchmark with its total return amounting to 8.27% against the return of -7.55% on the FBMSHA. 77

86 2016/2017 MASTER PROSPECTUS 3-Year Fund Performance Review For the 3-year period ended 31 July 2015, PMB SAF posted a return of 67.70% outperforming its benchmark return of 9.71%. 5-Year Fund Performance Review For the 5-year period ended 31 July 2015, PMB SAF registered a return of 98.35% higher than the benchmark of 35.84%. Note: Change of benchmark: i) 15 January 2013 FBMSHA (change of Fund s investment objective that invest in Shariah-compliant securities) ii) 6 July 2009 FBM Top 100 Index (adoption by Bursa Malaysia of FTSE Bursa Malaysia Index Series) iii) Prior to 6 July 2009 KLCI 78

87 MASTER PROSPECTUS 2016/2017 Annual Total Return For the Financial Years Ended 31 July# Year PMB SAF Benchmark % (7.55%) % 8.16% % 11.21% % 6.74% % 19.85% % 16.25% 2009 (38.15%) (22.16%) 2008 (20.14%) (14.71%) % 46.27% Since Relaunched (21/11/05-15/7/06) (3.86%) 6.77% Distribution Highlight Financial Year End # 31 July 15 July Gross Distribution Per Unit - Cash (sen) Net Distribution Per Unit - Cash (sen) *2.20 *6.00 *2.30 * Distribution is in the form of units. Portfolio Turnover Ratio times 1.15 times 0.65 times The PTR was lower than the previous year as a result of a decrease in trading activities undertaken by the Fund during the financial year. Asset Allocation Year Equities 83.73% 72.40% 79.14% Derivatives 0.35% 0.17% - Deposit Placement & Others 15.92% 27.43% 20.96% The Fund s exposure in equities was higher in 2015 due to the buying activities on selective Shariah-compliant stocks based on their potential to meet the Fund s objective in the medium to long term. # Note: Effective from 28 April 2014, the financial year of PMB SAF ends on 31 July. Prior to that, the period ended on 15 July. 79

88 2016/2017 MASTER PROSPECTUS PMB SHARIAH GROWTH FUND Average Total Return Fund/Benchmark For The Period Ended 28 February 2015# 1 Year 3 years 5 Years 10 years PMB SGF 4.94% 13.52% 12.15% 7.23% FBMSHA 1.74% 6.66% 8.71% 7.86% Source: Lipper Total Return Fund/Benchmark For The Period Ended 28 February 2015# 1 Year 3 Years 5 Years 10 years PMB SGF 4.05% 46.29% 77.49% % FBMSHA 2.63% 21.33% 51.85% % Source: Lipper 1- Year Fund Performance Review For the 1-year period ended 28 February 2015, PMB SGF outperformed its benchmark when its total return amounted to 4.05% against the return of 2.63% on the FBMSHA. 80

89 MASTER PROSPECTUS 2016/ Year Fund Performance Review For the 3-year period ended 28 February 2015, PMB SGF posted a return of 46.29%, outperforming the benchmark return of 21.33%. 5-Year Fund Performance Review For the 5-year period ended 28 February 2015, PMB SGF registered a return of 77.49% compared to a return of 51.85% on its benchmark. Note: Change of benchmark: i) 15 January 2013 FBMSHA (change of Fund s investment objective that invest in Shariah-compliant securities) ii) 6 July 2009 FBM Top 100 Index (adoption by Bursa Malaysia of FTSE Bursa Malaysia Index Series) iii) Prior to 6 July 2009 KLCI 81

90 2016/2017 MASTER PROSPECTUS Annual Total Return For the Past 10 Financial Year Ended 28 February# Year PMB SGF Benchmark % 2.63% % 15.61% % 2.25% % 4.89% % 23.34% % 40.65% 2009 (33.78%) (43.95%) % 14.41% % 31.57% 2006 (7.41%) (1.30%) Distribution Highlight Financial Year End 28 Feb 15 Feb # 2013 Gross Distribution Per Unit - Cash (sen) Net Distribution Per Unit - Cash (sen) *5.00 * * Distribution is in the form of units. Portfolio Turnover Ratio times 0.41 times 0.57 times The PTR was higher than the previous year as a result of an increase in trading activities undertaken by the Fund during the financial year. Asset Allocation Year Equities 93.09% 96.28% 90.84% Derivatives 0.63% 0.43% - Deposit Placement & Others 6.28% 3.29% 9.16% The Fund s exposure in equities was lower in 2015 due to buying activity on selective Shariah-compliant stocks based on their potential to meet the Fund s objective in the medium to long term. # Note: Effective 28 April 2014, the financial year of PMB SGF ends on 28 February. 82

91 MASTER PROSPECTUS 2016/ PMB SHARIAH MID-CAP FUND Average Total Return Fund/Benchmark For The Period Ended 30 April Year 3 Years 5 Years 10 years PMB SMCF 3.30% 4.50% 4.06% 5.23% FBMSHA (1.06%) 6.84% 7.62% 8.29% Source: Lipper Total Return Fund/Benchmark For The Period Ended 30 April Year 3 Years 5 Years 10 years PMB SMCF 3.30% 14.13% 22.02% 66.58% FBMSHA (1.06%) 21.94% 44.36% % Source: Lipper 1- Year Fund Performance Review For the 1-year period ended 30 April 2015, PMB SMCF posted a return of 3.30% against a return of -1.06% on the FBMSHA. 83

92 2016/2017 MASTER PROSPECTUS 3-Year Fund Performance Review For the 3-year period ended 30 April 2015, PMB SMCF posted a return of 14.13% compared to an appreciation of 21.94% on its benchmark. 5-Year Fund Performance Review For the 5-year period ended 30 April 2015, PMB SMCF registered a return of 22.02% compared to a return of 44.36% on its benchmark. Note: Change of benchmark: i) 7 March 2014 FBMSHA (change of Fund s investment objective that invest in Shariah-compliant securities, particularly in medium sized companies) ii) 6 July 2009 FBM Top 100 Index (adoption by Bursa Malaysia of FTSE Bursa Malaysia Index Series) iii) Prior to 6 July 2009 KLCI 84

93 MASTER PROSPECTUS 2016/2017 Annual Total Return For the Past 10 Financial Year Ended 30 April Year PMB SMCF Benchmark % (1.06%) % 13.30% % 9.02% 2012 (2.15%) 2.87% % 12.67% % 38.31% 2009 (16.13%) (24.34%) % (1.11%) % 33.10% % 8.24% Distribution Highlight Financial Year End 30 April Gross Distribution Per Unit - Cash (sen) Net Distribution Per Unit - Cash (sen) *1.20 *1.20 *1.00 * Distribution is in the form of units. Portfolio Turnover Ratio times 1.19 times 0.33 times The higher PTR over the financial year of 2015 was a result of higher trading activities undertaken by the Fund due to restructuring of the Fund prior to its re-launch as a Shariah-compliant fund that invest primarily in mid-cap stocks. Asset Allocation Year Equities 71.18% 74.89% 58.21% Derivatives 0.38% - - Collective Investment Scheme 5.69% 5.65% 5.53% Deposit Placement & Others 22.75% 19.46% 36.26% The Fund s equities decrease to 71.18% in 2015 compare to previous year. 85

94 2016/2017 MASTER PROSPECTUS PMB SHARIAH INDEX FUND Average Total Return Fund/Benchmark For The Period Ended 31 March 2015# 1 Year 3 Years 5 Years 10 Years PMB SIF 0.80% 6.77% 8.17% 7.52% FBMSHA (0.18%) 6.65% 8.01% 8.33% Source: Lipper Total Return Fund/Benchmark For The Period Ended 31 March 2015# 1 Year 3 Years 5 Years 10 Years PMB SIF 3.37% 21.71% 48.15% % FBMSHA 2.40% 21.32% 47.01% % Source: Lipper 1- Year Fund Performance Review For the 1-year period ended 31 March 2015, PMB SIF posted a return of 3.37% compared to a return of 2.40% on its benchmark. 86

95 MASTER PROSPECTUS 2016/ Year Fund Performance Review For the 3-year period ended 31 March 2015, PMB SIF posted a return of 21.71% compared to a return of 21.32% on its benchmark. 5-Year Fund Performance Review For the 5-year period ended 31 March 2015, PMB SIF registered a return of 48.15% compared to a return of 47.01% on its benchmark. Note: Change of benchmark: i) 15 January 2013 FBMSHA (change of Fund s investment objective that invest in Shariah-compliant securities) ii) 6 July 2009 FBM Top 100 Index (adoption by Bursa Malaysia of FTSE Bursa Malaysia Index Series) iii) Prior to 6 July 2009 KLCI 87

96 2016/2017 MASTER PROSPECTUS Annual Total Return For the Past 10 Financial Years Ended 31 March# Year PMB SIF Benchmark % 2.40% % 14.99% % 3.33% % 6.42% % 14.19% % 54.56% 2009 (19.37%) (32.23%) % 2.87% % 24.57% % 3.11% Distribution Hightlight Financial Year End 31 March 15 March # 2013 Gross Distribution Per Unit - Cash (sen) Net Distribution Per Unit - Cash (sen) * *1.70 * Distribution is in the form of units. Portfolio Turnover Ratio times 0.58 times 0.49 times The higher PTR over the financial year of 2015 was as a result of higher trading activities undertaken by the Fund. Asset Allocation Year Equities 94.82% 94.54% 82.99% Islamic Real Estate Investment Trust (REIT) 0.74% 0.60% - Collective Investment Scheme % Deposit Placement & Others 4.44% 4.86% 12.48% The Fund s exposure in equities was a bit higher in 2015 as the minimum equity exposure of the Fund was raised to 90% to in line with its objective to mirror the performance of the benchmark index. #Note: Effective 28 April 2014, the financial year of PMB SIF ends on 31 March. 88

97 MASTER PROSPECTUS 2016/ PMB SHARIAH PREMIER FUND Average Total Return Fund/Benchmark For The Period Ended 31 August 2015# 1 Year 3 Years 5 Years 10 Years PMB SPF 1.87% 3.20% 6.49% 5.19% FBMSHA (13.44%) 0.19% 4.34% 6.75% Source: Lipper Total Return Fund/Benchmark For The Period Ended 31 August 2015# 1 Year 3 Years 5 Years 10 Years PMB SPF 1.87% 9.90% 36.94% 65.93% FBMSHA (13.44%) 0.58% 23.71% 92.21% Source: Lipper 1- Year Fund Performance Review For the 1-year period ended 31 August 2015, PMB SPF posted a return total at 1.87% against the benchmark return of % on the FBMSHA. 89

98 2016/2017 MASTER PROSPECTUS 3-Year Fund Performance Review For the 3-year period ended 31 August 2015, PMB SPF posted a return of 9.90% compared to a return of 0.58% on its benchmark. 5-Year Fund Performance Review For the 5-year period ended 31 August 2015, PMB SPF registered a return of 36.94% compared to a return of 23.71% on its benchmark. Note: Change of benchmark: i) 15 January 2013 FBMSHA (change of Fund s investment objective that invest in Shariah-compliant securities) ii) 6 July 2009 FBM Top 100 Index (adoption by Bursa Malaysia of FTSE Bursa Malaysia Index Series) iii) Prior to 6 July 2009 KLCI 90

99 MASTER PROSPECTUS 2016/2017 Annual Total Return For the Past 10 Financial Years Ended 31 August# Year PMB SPF Benchmark % (13.44%) % 9.74% % 9.09% % 10.30% % 12.67% % 14.58% % 11.11% 2008 (8.34%) (8.48%) % 30.39% 2006 (3.13%) 2.56% Distribution Highlight Financial Year End # 31 August 15 August Gross Distribution Per Unit - Cash (sen) Net Distribution Per Unit - Cash (sen) *2.30 *2.50 *2.50 * Distribution is in the form of units. Portfolio Turnover Ratio times 1.37 times 0.62 times The PTR was lower than the previous year as a result of an decrease in trading activities undertaken by the Fund during the financial year. Asset Allocation # 31 August 15 August Year Equities 88.02% 98.13% 76.26% Islamic Real Estate Investment Trust (REIT) 3.37% - - Collective Investment Scheme % Deposit Placement & Others 8.61% 1.87% 18.30% The Fund s equities decrease to 88.02% in 2015 compare to previous year. #Note: Effective from 28 April 2014, the financial year of PMB SPF ends on 31 August. Prior to that, the period ended on 15 August. 91

100 2016/2017 MASTER PROSPECTUS PMB SHARIAH DIVIDEND FUND Average Total Return Fund/Benchmark For The Period Ended 31 March Year 3 Years 5 Years Since Inception 11/8/2008 PMB SDF 9.12% 5.94% 6.91% 6.21% FBMSHA (0.18%) 6.65% 8.01% 8.17% Source: Lipper Total Return Fund/Benchmark For The Period Ended 31 March Year 3 Years 5 Years Since Inception 11/8/2008 PMB SDF 9.12% 18.89% 39.69% 49.21% FBMSHA (0.18%) 21.32% 47.01% 68.43% Source: Lipper 1- Year Fund Performance Review For the 1-year period ended 31 March 2015, PMB SDF posted a return of 9.12% against the return of -0.18% on its benchmark. 92

101 MASTER PROSPECTUS 2016/ Year Fund Performance Review For the 3-year period ended 31 March 2015, PMB SDF posted a return of 18.89% compared to an appreciation of 21.32% on its benchmark. 5-Year Fund Performance Review For the 5-year ended 31 March 2015, PMB SDF registered a return of 39.69% compared to the return of 47.01% on its benchmark. 93

102 2016/2017 MASTER PROSPECTUS Annual Total Return For the Financial Year Ended 31 March Year PMB SDF Benchmark % (0.18%) % 15.75% % 5.00% % 4.27% % 18.48% % 46.64% Since Inception (21/7/08-31/3/09) 9.52% (34.14%) Distribution Highlight Financial Year End 31 March Gross Distribution Per Unit - Cash (sen) Net Distribution Per Unit - Cash (sen) *1.00 *1.00 *0.80 * Distribution is in the form of units. Portfolio Turnover Ratio times 0.53 times 0.73 times The PTR was higher than the previous year as a result of an increase trading activities undertaken by the Fund during the financial year. Asset Allocation Year Equities 87.05% 75.86% 61.50% Islamic Real Estate Investment Trust (REIT) 9.11% - - Collective Investment Scheme % 4.79% Derivatives 0.04% - - Deposit Placement & Others 3.80% 18.61% 33.71% The Fund s exposure in equities was raised in 2015 due to buying activity on selective Shariah-compliant stocks based on their potential to meet the Fund s objective in the medium to long term. 94

103 MASTER PROSPECTUS 2016/ PMB SHARIAH TNB EMPLOYEES FUND Average Total Return Fund/Benchmark For The Period Ended 30 August Year 3 Years 5 Years 10 years PMB STEF (7.69%) 1.84% 3.98% 2.79% FBMSHA (13.44%) 0.19% 4.34% 6.75% Source: Lipper Total Return Fund/Benchmark For The Period Ended 30 August Year 3 Years 5 Years 10 years PMB STEF (7.69%) 5.62% 21.55% 31.66% FBMSHA (13.44%) 0.58% 23.71% 92.21% Source: Lipper 1- Year Fund Performance Review For the 1-year period ended 30 August 2015, PMB STEF posted a return of -7.69% against the return of % on the FBMSHA. 95

104 2016/2017 MASTER PROSPECTUS 3- Year Fund Performance Review For the 3-year period ended 30 August 2015, PMB STEF posted a return of 5.62% against the return of 0.58% on the FBMSHA. 5-Year Fund Performance Review For the 5-year period ended 30 August 2015, PMB STEF registered a return of 21.55% compared to the return of 23.71% on the FBMSHA. Note: Change of benchmark: i) 7 March 2014 FBMSHA (change of Fund s investment objective that invest in Shariah-compliant securities) ii) 6 July 2009 FBM Top 100 Index (adoption by Bursa Malaysia of FTSE Bursa Malaysia Index Series) iii) Prior to 6 July 2009 KLCI 96

105 MASTER PROSPECTUS 2016/2017 Annual Total Return For the Past 10 Financial Years Ended 30 August Year PMB STEF Benchmark 2015 (7.69%) (13.44%) % 9.74% % 6.10% % 13.68% % 4.80% % 20.84% 2009 (0.45%) 9.08% 2008 (14.27%) (13.33%) % 30.05% 2006 (1.81%) 5.40% Distribution Highlight Financial Year End 30 August Gross Distribution Per Unit - Cash (sen) Net Distribution Per Unit - Cash (sen) * *1.35 * Distribution is in the form of units Portfolio Turnover Ratio times 1.23 times 0.37 times The PTR was lower than the previous year as a result of an decrease in trading activities undertaken by the Fund during the financial year. Asset Allocation Year Equities 63.00% 70.54% 70.22% Derivatives 0.09% - - Collective Investment Scheme 6.24% 5.32% 5.43% Deposit Placement & Others 30.67% 24.14% 24.35% The Fund exposure in equities was lower in 2015 due to buying activities on selective Shariah-compliant stocks based on their potential to meet the Fund s objective in the medium to long term. 97

106 2016/2017 MASTER PROSPECTUS 6.2 MIXED ASSET FUND PMB SHARIAH TACTICAL FUND Average Total Return Fund/Benchmark For The Period Ended 31 December Years 3 Year 5 Years 10 years PMB STF* 5.94% 4.35% 4.65% 4.96% Benchmark# 7.10% 6.91% 6.88% N/A * Source: Lipper # Source: Bank Negara Malaysia Total Return Fund/Benchmark For The Period Ended 31 December Year 3 Years 5 years 10 Years PMB STF 5.94% 13.62% 25.52% 62.32% Benchmark 7.10% 21.30% 35.50% N/A * Source: Lipper # Source: Bank Negara Malaysia 1- Year Fund Performance Review For the 1-year period ended 31 December 2015, PMB STF posted a return of 5.94% against the return of 7.10% on the benchmark. *2x KLIRR 98

107 MASTER PROSPECTUS 2016/ Year Fund Performance Review For the 3-year period ended 31 December 2015, PMB STF posted a return of 13.62% against the return of 21.30% on the benchmark. *2x KLIRR 5-Year Fund Performance Review For the 5-year period ended 31 December 2015, PMB STF posted a return of 25.52% against the return of 35.50% on the benchmark. *2x KLIRR Note: Change of benchmark: i) 25 October 2013 Two times (2x) the performance of 1-Year Adjusted Average Rate of Kuala Lumpur Islamic Reference Rate (KLIRR) (change of Fund s investment objective that becomes a tactical fund) ii) 6 July 2009 FBM Top 100 Index (adoption by Bursa Malaysia of FTSE Bursa Malaysia Index Series) iii) Prior to 6 July 2009 KLCI 99

108 2016/2017 MASTER PROSPECTUS Annual Total Return For the Past 10 Financial Years Ended 31 December Year PMB STF Benchmark % 7.10% 2014 (2.87%) 7.10% % 10.39% % 6.54% % 21.76% % 21.76% % 38.87% 2008 (35.04%) (48.39%) % 29.30% % 20.54% Distribution Highlight Financial Year End 31 December Gross Distribution Per Unit - Cash (sen) Net Distribution Per Unit - Cash (sen) *1.00 *3.00 *2.55 * Distribution is in the form of units. Portfolio Turnover Ratio times 1.55 times 0.56 times The PTR was lower than the previous year as a result of decrease in trading activities undertaken by the Fund during the financial year. Asset Allocation Year Equities 69.15% 65.67% % Collective Investment Scheme % Islamic Real Estate Investment Trust (REIT) 2.13% - - Islamic money market instruments % - Derivatives % Deposit Placement & Others 28.72% 19.52% 2.55% The Fund s exposure in increase to 69.15% in 2015 compare to previous year. 100

109 MASTER PROSPECTUS 2016/ BALANCED FUND PMB SHARIAH BALANCED FUND Average Total Return Fund/Benchmark For The Period Ended 30 November Year 3 Years 5 Years 10 years PMB SBF* 3.06% 5.18% 3.36% 6.99% Benchmark# (0.26%) 4.06% 4.25% N/A * Source: Lipper # Source: Bank Negara Malaysia Total Return Fund/Benchmark For The Period Ended 30 November Year 3 Years 5 Years 10 ye ars PMB SBF* 3.06% 16.37% 17.97% 24.44% Benchmark# (0.26%) 12.40% 22.50% N/A * Source: Lipper # Source: Bank Negara Malaysia 1- Year Fund Performance Review For the 1-year period ended 30 November 2015, PMB SBF posted a return of 3.06% against the return of -0.26% on the benchmark. * Combination of 50% FBMSHA and 50% of 12-month KLIRR 101

110 2016/2017 MASTER PROSPECTUS 3-Year Fund Performance Review For the 3-year period ended 30 November 2015, PMB SBF posted a return of 16.37% compared to the appreciation of 12.40% on its benchmark. * Combination of 50% FBMSHA and 50% of 12-month KLIRR 5-Year Fund Performance Review For the year 5-year period ended 30 November 2015, PMB SBF registered a return of 17.97% compared to the return of 22.50% on its benchmark. Note: * Combination of 50% FBMSHA and 50% of 12-month KLIRR Change of benchmark: i) 15 January % FBMSHA + 50% 1 year KLIRR (change of Fund s investment objective that invest in Shariah-compliant securities) ii) 6 July % FBM Top 100 Index + 40% Maybank s 12 month Fixed Deposit Rate (adoption by Bursa Malaysia of FTSE Bursa Malaysia Index Series) iii) Prior to 6 July % KLCI + 40% Maybank s 12 month Fixed Deposit Rate 102

111 MASTER PROSPECTUS 2016/2017 Annual Total Return For the Past 10 Financial Years Ended 30 November Year PMB Balanced Benchmark % (0.26%) % 2.96% % 9.80% % 6.54% 2011 (2.74%) 1.41% 2010 (3.77%) 12.80% % 25.46% 2008 (24.21%) (25.95%) % 17.56% % 13.42% Distribution Highlight Financial Year End 30 November Gross Distribution Per Unit - Cash (sen) Net Distribution Per Unit - Cash (sen) *2.50 *3.50 *2.00 *Distribution is in the form of units Portfolio Turnover Ratio times 1.17 times 0.42 times The PTR was lower than the previous year as a result of an decrease in trading activities undertaken by the Fund during the financial year. Asset Allocation Year Equities 39.00% 51.43% 48.38% Islamic Real Estate Investment Trust (REIT) 2.85% - - Collective Investment Scheme 14.29% 16.60% 15.78% Deposit Placement & Others 43.86% 31.97% 35.84% The equity exposure was dropped at 39.00%, reflecting the conservative strategy adopted by the Fund. 103

112 2016/2017 MASTER PROSPECTUS 6.4 MONEY MARKET FUND PMB SHARIAH CASH MANAGEMENT FUND Average Total Return Fund/Benchmark For The Period Ended 30 June Year 3 Years 5 Years Since Relaunched 21/11/05 PMB SCMF 3.07% 2.92% 2.74% 2.73% Benchmark ^ 3.20% 3.05% 2.96% 2.97% Source: Lipper ^ BNM Overnight Islamic Interbank Rate Total Return Fund/Benchmark For The Period Ended 30 June Year 3 Years 5 Years Since Relaunched 21/11/05 PMB SCMF 3.07% 9.00% 14.47% 29.56% Benchmark^ 3.20% 9.42% 15.74% 32.50% Source: Lipper ^ BNM Overnight Islamic Interbank Rate 1- Year Fund Performance Review For the 1-year period ended 30 June 2015, PMB SCMF posted a return of 3.07% against the return of 3.20% on the BNM Islamic Interbank Overnight Rate. 104

113 MASTER PROSPECTUS 2016/ Year Fund Performance Review For the 3-year period ended 30 June 2015, PMB SCMF posted a return of 9.00% compared to the appreciation of 9.42% on its benchmark. 5-Year Fund Performance Review For the 5-year period ended 30 June 2015, PMB SCMF registered a return of 14.47% compared to the return of 15.74% on its benchmark. Note: Change of benchmark: i) 28 April 2013 BNM Overnight Islamic Interbank Overnight Rate quoted at the Islamic Interbank Money Market (IIMM) of Bank Negara Malaysia (revised to reflect.3) ii) Fund s investment in short term money market instruments) iii) 21 November 2005 BNM 3-month Islamic Interbank Rate (change of Fund s investment objective into a Shariah money market fund) iv) Prior to November 2005 KLCI 105

114 2016/2017 MASTER PROSPECTUS Annual Total Return For the Financial Year Ended 30 June Year PMB SCMF Benchmark % 3.20% % 2.97% % 2.96% % 3.18% % 2.91% % 2.16% % 2.99% % 3.46% % 3.60% Since Relaunched 21/11/05-15/6/ % 3.23% Distribution Highlight Financial Year End 30 June Gross Distribution Per Unit - Cash(sen) Net Distribution Per Unit - Cash (sen) *1.49 *1.37 *1.10 * Distribution is in the form of units Portfolio Turnover Ratio times 2.86 times 1.80 times The PTR was lower than the previous year as a result of an decrease in trading activities undertaken by the Fund during the financial year. Asset Allocation Year Islamic money market instruments 10.63% 15.96% 14.59% Deposit placement and others 89.37% 84.04% 85.41% The asset allocation for Islamic money market instruments decreased to 10.63% from the previous year. The Fund exposure in deposit placement was increased by 5.33% in

115 MASTER PROSPECTUS 2016/ HISTORICAL FINANCIAL HIGHLIGHTS The Audited financial statements of the Funds are disclosed in the Funds annual report. The Funds annual report is available upon request. Past performance is not an indication of their future performance. 7.1 EQUITY FUNDS PMB DANA AL-AIMAN Financial Year Ending 31 May EXTRACT OF AUDITED STATEMENT OF INCOME AND EXPENDITURE Financial Year End Total Investment Income/(loss) (RM) 1,480,458 3,721,527 8,737,268 Total Expenses (RM) (1,271,690) (1,342,427) (1,327,724) Net Income/(loss) before taxation (RM) 208,768 2,379,100 7,409,544 Taxation (RM) - (10,438) (3,471) Net Income/(loss) after taxation (RM) 208,768 2,368,662 7,406,073 EXTRACT OF AUDITED STATEMENT OF ASSETS AND LIABILITIES Financial Year End Total Investment (RM) 53,082,045 57,633,785 65,966,787 Other Asset (RM) 644,665 3,608,788 2,508,338 Total Assets (RM) 53,726,710 61,242,573 68,475,125 Total Liabilities (RM) (3,052,794) (4,552,013) (5,884,719) Net Asset Value (RM) 50,673,916 56,690,560 62,590,406 Unit Holders Funds (RM) 50,673,916 56,690,560 62,590,

116 2016/2017 MASTER PROSPECTUS PMB DANA MUTIARA Financial Year Ending 30 June EXTRACT OF AUDITED STATEMENT OF INCOME AND EXPENDITURE Financial Year End Total Investment Income/(loss) (RM) (290,228) 592, ,123 Total Expenses (RM) (172,540) (182,479) (171,087) Net Income/(loss) before taxation (RM) (462,768) 410, ,036 Taxation (RM) (15,944) (601) 1,168 Net Income/(loss) after taxation (RM) (478,712) 409, ,204 EXTRACT OF AUDITED STATEMENT OF ASSETS AND LIABILITIES Financial Year End Total Investment (RM) 6,118,811 7,088,246 7,486,665 Other Asset (RM) 253, , ,300 Total Assets (RM) 6,372,563 7,381,779 8,032,965 Total Liabilities (RM) (289,733) (545,654) (169,409) Net Asset Value (RM) 6,082,830 6,836,125 7,863,556 Unit Holders Funds (RM) 6,082,830 6,836,125 7,863,

117 MASTER PROSPECTUS 2016/ PMB DANA BESTARI Financial Year Ending 30 September EXTRACT OF AUDITED STATEMENT OF INCOME AND EXPENDITURE Financial Year End Total Investment Income/(loss) (RM) (4,171) 692, ,497 Total Expenses (RM) (254,766) (327,299) (267,606) Net Income/(loss) before taxation (RM) (258,937) 365, ,891 Taxation (RM) (7,535) Net Income/(loss) after taxation (RM) (266,472) 365, ,331 EXTRACT OF AUDITED STATEMENT OF ASSETS AND LIABILITIES Financial Year End Total Investment (RM) 9,012,142 9,978,766 11,134,617 Other Asset (RM) 277, , ,394 Total Assets (RM) 9,289,954 10,261,188 11,428,011 Total Liabilities (RM) (408,081) (778,802) (671,243) Net Asset Value (RM) 8,881,873 9,482,386 10,756,768 Unit Holders Funds (RM) 8,881,873 9,482,386 10,756,

118 2016/2017 MASTER PROSPECTUS PMB SHARIAH AGGRESSIVE FUND Financial Year Ending 31 July EXTRACT OF AUDITED STATEMENT OF INCOME AND EXPENDITURE Financial Year End Total Investment Income/(loss) (RM) 2,984,965 1,535,729 1,036,323 Total Expenses (RM) (529,682) (170,154) (88,832) Net Income/(loss) before taxation (RM) 2,455,283 1,365, ,491 Taxation (RM) (694) (1,477) (7,038) Net Income/(loss) after taxation (RM) 2,454,589 1,364, ,453 EXTRACT OF AUDITED STATEMENT OF ASSETS AND LIABILITIES Financial Year End Total Investment (RM) 33,316,684 10,041,196 4,986,280 Other Asset (RM) 2,077,806 1,064, ,343 Total Assets (RM) 35,394,490 11,105,365 5,251,623 Total Liabilities (RM) (3,618,489) (1,132,086) (250,343) Net Asset Value (RM) 31,776,001 9,973,279 5,001,280 Unit Holders Funds (RM) 31,776,001 9,973,279 5,001,

119 MASTER PROSPECTUS 2016/ PMB SHARIAH GROWTH FUND Financial Year Ending 28 February EXTRACT OF AUDITED STATEMENT OF INCOME AND EXPENDITURE Financial Year End Total Investment Income/(loss) (RM) 1,087,164 2,281, ,412 Total Expenses (RM) (308,067) (159,936) (132,517) Net Income/(loss) before taxation (RM) 779,097 2,121, ,895 Taxation (RM) (607) (8,083) (5,833) Net Income/(loss) after taxation (RM) 778,490 2,113, ,062 EXTRACT OF AUDITED STATEMENT OF ASSETS AND LIABILITIES Financial Year End Total Investment (RM) 15,255,369 9,029,166 5,913,924 Other Asset (RM) 339, , ,301 Total Assets (RM) 15,594,596 9,248,446 6,195,225 Total Liabilities (RM) (580,598) (691,358) (11,947) Net Asset Value (RM) 15,013,998 8,557,088 6,183,278 Unit Holders Funds (RM) 15,013,998 8,557,088 6,183,

120 2016/2017 MASTER PROSPECTUS PMB SHARIAH MID-CAP FUND Financial Year Ending 30 April EXTRACT OF AUDITED STATEMENT OF INCOME AND EXPENDITURE Financial Year End Total Investment Income/(loss) (RM) 1,705,804 2,972,490 1,371,948 Total Expenses (RM) (771,618) (780,266) (598,054) Net Income/(loss) before taxation (RM) 934,186 2,192, ,894 Taxation (RM) - - (23,040) Net Income/(loss) after taxation (RM) 934,186 2,192, ,854 EXTRACT OF AUDITED STATEMENT OF ASSETS AND LIABILITIES Financial Year End Total Investment (RM) 28,141,302 26,942,407 29,222,596 Other Asset (RM) 1,279,553 2,683, ,479 Total Assets (RM) 29,420,855 29,625,800 30,133,075 Total Liabilities (RM) (2,041,682) (1,829,853) (2,594,012) Net Asset Value (RM) 27,379,173 27,795,947 27,539,063 Unit Holders Funds (RM) 27,379,173 27,795,947 27,539,

121 MASTER PROSPECTUS 2016/ PMB SHARIAH INDEX FUND Financial Year Ending 31 March EXTRACT OF AUDITED STATEMENT OF INCOME AND EXPENDITURE Financial Year End Total Investment Income/(loss) (RM) 676,311 2,201, ,743 Total Expenses (RM) (205,740) (191,121) (262,739) Net Income/(loss) before taxation (RM) 470,571 2,009, ,004 Taxation (RM) (4,186) (5,203) (17,566) Net Income/(loss) after taxation (RM) 466,385 2,004, ,438 EXTRACT OF AUDITED STATEMENT OF ASSETS AND LIABILITIES Financial Year End Total Investment (RM) 15,249,929 15,399,786 15,944,338 Other Asset (RM) 226, , ,292 Total Assets (RM) 15,476,335 15,669,321 16,144,630 Total Liabilities (RM) (359,742) (862,683) (575,360) Net Asset Value (RM) 15,116,593 14,806,638 15,569,270 Unit Holders Funds (RM) 15,116,593 14,806,638 15,569,

122 2016/2017 MASTER PROSPECTUS PMB SHARIAH PREMIER FUND Financial Year Ending 31 August EXTRACT OF AUDITED STATEMENT OF INCOME AND EXPENDITURE Financial Year End Total Investment Income/(loss) (RM) 1,687,656 1,230,279 4,443,928 Total Expenses (RM) (962,884) (1,132,145) (878,531) Net Income/(loss) before taxation (RM) 724,772 98,134 3,565,397 Taxation (RM) (6,250) (4,107) 10,050 Net Income/(loss) after taxation (RM) 718,522 94,027 3,575,447 EXTRACT OF AUDITED STATEMENT OF ASSETS AND LIABILITIES Financial Year End Total Investment (RM) 38,628,447 42,554,973 41,904,221 Other Asset (RM) 1,102, , ,445 Total Assets (RM) 39,731,425 43,074,721 42,477,666 Total Liabilities (RM) (2,955,248) (3,282,809) (2,962,152) Net Asset Value (RM) 36,776,177 39,791,912 39,515,514 Unit Holders Funds (RM) 36,776,177 39,791,912 39,515,

123 MASTER PROSPECTUS 2016/ PMB SHARIAH DIVIDEND FUND Financial Year Ending 31 March EXTRACT OF AUDITED STATEMENT OF INCOME AND EXPENDITURE Financial Year End Total Investment Income/(loss) (RM) 716, , ,255 Total Expenses (RM) (192,680) (142,404) (196,451) Net Income/(loss) before taxation (RM) 523, , ,804 Taxation (RM) 4,657 (7,051) (14,676) Net Income/(loss) after taxation (RM) 528, , ,128 EXTRACT OF AUDITED STATEMENT OF ASSETS AND LIABILITIES Financial Year End Total Investment (RM) 5,921,141 4,946,442 6,421,976 Other Asset (RM) 157,428 1,200, ,079 Total Assets (RM) 6,078,569 6,146,876 6,585,055 Total Liabilities (RM) (231,068) (496,137) (225,606) Net Asset Value (RM) 5,847,501 5,650,739 6,359,449 Unit Holders Funds (RM) 5,847,501 5,650,739 6,359,

124 2016/2017 MASTER PROSPECTUS PMB SHARIAH TNB EMPLOYEES FUND Financial Year Ending 30 August EXTRACT OF AUDITED STATEMENT OF INCOME AND EXPENDITURE Financial Year End Total Investment Income/(loss) (RM) (1,061,984) 1,877,811 1,679,690 Total Expenses (RM) (432,668) (516,825) (375,964) Net Income/(loss) before taxation (RM) (1,494,652) 1,360,986 1,303,726 Taxation (RM) - (677) (118,018) Net Income/(loss) after taxation (RM) (1,494,652) 1,360,309 1,185,708 EXTRACT OF AUDITED STATEMENT OF ASSETS AND LIABILITIES Financial Year End Total Investment (RM) 17,209,908 19,656,171 19,535,210 Other Asset (RM) 218, , ,030 Total Assets (RM) 17,428,131 19,916,771 19,853,240 Total Liabilities (RM) (644,051) (1,468,250) (1,613,779) Net Asset Value (RM) 16,784,080 18,448,521 18,239,461 Unit Holders Funds (RM) 16,784,080 18,448,521 18,239,

125 MASTER PROSPECTUS 2016/ MIXED ASSET FUND PMB SHARIAH TACTICAL FUND Financial Year Ending 31 December EXTRACT OF AUDITED STATEMENT OF INCOME AND EXPENDITURE Financial Year End Total Investment Income/(loss) (RM) 1,375,011 (38,621) 2,055,717 Total Expenses (RM) (439,762) (488,121) (380,568) Net Income/(loss) before taxation (RM) 935,249 (526,742) 1,675,149 Taxation (RM) (6,527) 975 (1,852) Net Income/(loss) after taxation (RM) 928,722 (525,767) 1,673,297 EXTRACT OF AUDITED STATEMENT OF ASSETS AND LIABILITIES Financial Year End Total Investment (RM) 14,939,903 13,151,472 19,074,698 Other Asset (RM) 1,602,746 3,102, ,175 Total Assets (RM) 16,542,649 16,253,770 19,766,873 Total Liabilities (RM) (397,270) (965,577) (1,579,827) Net Asset Value (RM) 16,145,379 15,288,193 18,187,046 Unit Holders Funds (RM) 16,145,379 15,288,193 18,187,

126 2016/2017 MASTER PROSPECTUS 7.3 BALANCED FUND PMB SHARIAH BALANCED FUND Financial Year Ending 30 November EXTRACT OF AUDITED STATEMENT OF INCOME AND EXPENDITURE Financial Year End Total Investment Income/(loss) (RM) 81,518 62, ,404 Total Expenses (RM) (25,030) (32,282) (24,959) Net Income/(loss) before taxation (RM) 56,488 29, ,445 Taxation (RM) Net Income/(loss) after taxation (RM) 56,488 29, ,445 EXTRACT OF AUDITED STATEMENT OF ASSETS AND LIABILITIES Financial Year End Total Investment (RM) 1,374,854 1,226,454 1,249,426 Other Asset (RM) 145,770 38,107 84,190 Total Assets (RM) 1,520,624 1,264,561 1,333,616 Total Liabilities (RM) (53,346) (59,672) (40,082) Net Asset Value (RM) 1,467,278 1,204,889 1,293,534 Unit Holders Funds (RM) 1,467,278 1,204,889 1,293,

127 MASTER PROSPECTUS 2016/ MONEY MARKET FUND PMB SHARIAH CASH MANAGEMENT FUND Financial Year Ending 30 June EXTRACT OF AUDITED STATEMENT OF INCOME AND EXPENDITURE Financial Year End Total Investment Income/(loss) (RM) 891, , ,730 Total Expenses (RM) (103,498) (70,029) (46,171) Net Income/(loss) before taxation (RM) 788, , ,559 Taxation (RM) (21,205) - 10,773 Net Income/(loss) after taxation (RM) 767, , ,332 EXTRACT OF AUDITED STATEMENT OF ASSETS AND LIABILITIES Financial Year End Total Investment (RM) 27,674,283 24,364,658 21,115,044 Other Asset (RM) 216, , ,338 Total Assets (RM) 27,890,862 25,074,761 21,257,382 Total Liabilities (RM) (232,612) (144,484) (873,201) Net Asset Value (RM) 27,658,250 24,930,277 20,384,181 Unit Holders Funds (RM) 27,658,250 24,930,277 20,384,

128 2016/2017 MASTER PROSPECTUS 7.5 TOTAL ANNUAL EXPENSES The table below shows the total annual expenses incurred by the Funds in their respective preceding financial year-ends. The percentage was calculated based on the Average NAV. Fund Management Fee Trustee Fee Fund Expenses Total Annual Expenses (RM 000) (%) (RM 000) (%) (RM 000) (%) (RM 000) (%) PMB AL-AIMAN PMB MUTIARA PMB BESTARI PMB SAF PMB SGF PMB SMCF PMB SIF PMB SPF PMB SDF PMB STF PMB STEF PMB SBF PMB SCMF

129 MASTER PROSPECTUS 2016/ MANAGEMENT EXPENSES RATIO (MER) The MERs of the Funds for the respective latest financial year are as follows: Fund/Financial Year End 2015 (%) 2014 (%) 2013 (%) PMB AL-AIMAN PMB MUTIARA PMB BESTARI PMB SAF PMB SGF PMB SMCF PMB SIF PMB SPF PMB SDF PMB SBF PMB STF PMB STEF PMB SCMF

130 2016/2017 MASTER PROSPECTUS 8. FEES, CHARGES AND EXPENSES There are fees and charges involved and investors are advised to consider them before investing in the Fund. 8.1 CHARGES Charges payable by the investors directly when investing in the Fund, are as below Charges Distribution Channel(s) % of the NAV Fund Sales charge per unit IUTA, UTC & direct purchase 6.0 % Applicable to all Funds except PMB SCMF EPF Members Investment Scheme 3.0% Applicable to all Funds except PMB SCMF Repurchase charge per unit IUTA, UTC, direct purchase and EPF Members Scheme IUTA, UTC, direct repurchase & EPF Members Investment Scheme Nil Nil PMB SCMF Applicable to all Funds In calculating the charges imposed, any adjustments for rounding up would only be conducted once at the charges level and only up to 4 decimal places. *Notes: i) The Manager may, at its discretion, charge a lower sales charge based on criteria as may be determined from time to time. ii) All the above charges are subject to the goods and services tax (GST) currently at the rate of 6.0% (You may refer to Section 15.9 on the GST). Sales Charge Below is an illustration on how the sales charge is calculated:- Investment amount in PMB SIF NAV per Unit Sales charge Units issued to Unit Holder : RM10,000 : RM : 6.0% of NAV per unit = Investment amount NAV per unit = RM10,000 RM = 20,000 units Sales charge per Unit = NAV per unit x Sales charge (%) = RM x 6.0% = RM Total sales charge* = 20,000 units x RM = RM Please note that the above example is for illustration purposes only. *Note: In addition, the above charge is subject to the goods and services tax (GST) currently at the rate of 6.0%. 122

131 MASTER PROSPECTUS 2016/2017 Repurchase Charge We do not impose any repurchase charge when you redeem your units. Transfer fee Up to RM10 per transaction (excluding stamp duty). Note: In addition, the above fee is subject to the goods and services tax (GST) currently at the rate of 6.0%. Switching fee This facility enables Unit Holders to switch units of one Fund to units of other Funds managed by the Manager which is available for sale. Units switched are transacted at the Fund s NAV per unit. The minimum investment that can be switched in each transaction is RM1,000. The conditions for switching are set out below:- The fee for switching are set out below: From To Equity funds Mixed Asset/ Balanced funds Money Market fund Switching fee* Equity funds Up to RM25 per transaction Up to RM25 per transaction Nil Mixed Asset / Balanced fund Up to RM25 per transaction Up to RM25 per transaction Nil Money Market fund Up to 6% of the amount switched Not applicable *Note: In addition, the above fee is subject to the goods and services tax (GST) currently at the rate of 6.0%. 8.2 FEES When investing in the Funds, you may also incur indirect fees which are charged to the Fund as follows:- Annual Management Fee The annual management fee is calculated daily at 1.5% per annum of the NAV of a Fund, except for PMB SBF at the rate of 1.0% per annum, PMB SIF at the rate of 0.6% per annum and PMB SCMF at the rate of 0.4% per annum, before accruing the management fee and the trustee fee on the valuation point. The computation of the annual management fee for a particular date is based on the following method:- (NAV before accruing the management fee and the trustee fee on the valuation point) X (the rate of management fee) Number of days in a year Assuming the NAV before accruing the management fee and trustee fee on a particular date is RM280, and the rate of management fee for the relevant fund is 1.5% per annum, the amount of the management fee charged for that particular date would be:- Management Fee* = RM280,000 X 1.5% /365 days = RM11.51 *Note: In addition, the above fee is subject to the goods and services tax (GST) currently at the rate of 6.0%. 123

132 2016/2017 MASTER PROSPECTUS Annual Trustee Fee The annual trustee fee is calculated daily at 0.1% per annum of the NAV of a Fund, except for PMB SDF at the rate of 0.1% per annum subject to a minimum fee of RM18,000 per annum and PMB SCMF at the rate of 0.05% per annum based on NAV, before accruing the annual management fee and the trustee fee accrued on the valuation point. The computation of the annual trustee fee for a particular date is based on the following method:- (NAV before accruing the management fee and the trustee fee on the valuation point) X (the rate of trustee fee) Number of days in a year Assuming the NAV before accruing the management fee and trustee fee on a particular date is RM280, and the rate of trustee fee for the relevant fund is 0.1% per annum, the amount of the trustee fee charged for that particular date would be:- Trustee Fee* = RM280,000 X 0.1% / 365 days = RM0.77 *Note: In addition, the above fee is subject to the goods and services tax (GST) currently at the rate of 6.0%. 8.3 EXPENSES The Funds may incur the following operational and administrative expenses: - - Commissions/fees paid to brokers/dealers in effecting dealings in the investments of the Fund shown on the contract notes or confirmation notes; - Charges/fees paid to sub-custodian (for foreign investments only); - Tax and other duties charged on the Fund by the Government and other authorities; - The fees and other expenses properly incurred by the auditor appointed for the Fund; - Fees for the valuation of any investments of the Fund by independent valuers for the benefit of the Fund; - Cost of printing the Annual/Interim reports; - Costs incurred for the modification of the Deeds of the Fund other than those for the benefit of the management company and/or Trustee; - Cost incurred for any meeting of the Unit Holders other than those convened for the benefit of the management company and/or Trustee; and - Any other fees/expenses permitted by the Deed. Expenses related to the issuance of this Master Prospectus will be borne by the Manager. *Note: In addition, the above expenses are subject to the goods and services tax (GST) currently at the rate of 6.0%. 8.4 REBATE AND COMMISSION The Manager and the Trustee are not entitled to any rebates or to share any commission from broker in consideration for direct dealings in the investments of the Funds. Accordingly, any rebates and shared commissions will be directed to the account of the Funds. However, we may receive goods or services by way of soft commissions provided always that the goods or services are of demonstrable benefit to the Funds and that the execution of a transaction is consistent with the best execution standards. 124

133 MASTER PROSPECTUS 2016/ TRANSACTION INFORMATION HOW CAN YOU KEEP TRACK OF YOUR INVESTMENT The annual and interim reports with information on the performance and investments of the Funds are issued to unit holders of the Funds within two (2) months from the closing of their respective interim and financial year periods. You may obtain our latest information, our products and services, and market outlook at our website pmbinvestment.com.my. Our officers will provide you with more specific information on your investments should you require such a service. You may communicate with us via : Investor Relation Careline: (03) investorrelation@pelaburanmara.com.my Website: Complete the feedback form at pmbinvestment.com.my You may also walk-in to the Head Office or any of our regional offices during normal business hours as stated in Section 15.4(iv) of this Master Prospectus or write to the same. Fund prices will be published daily on our website. 9.1 TRANSACTION DETAILS How to Start Investing Please read and understand the Master Prospectus (and any supplementary master prospectus) and Product Highlight Sheet (PHS) before investing. You must attain the age of at least 18 on the date of application. If you fulfill this requirement, all you have to do is to complete an FIMM Pre-Investment Form, PMB Investment s Suitability Assessment Form and Master Application Form for initial account opening. In addition, you need to complete the Investment Request Form for buying transaction together with a photocopy of NRIC or related document. How to Conduct Subsequent Transaction For subsequent transaction, simply complete the Investment Request Form (to make additional investment). If your completed Suitability Assessment Form is done more than three (3) years prior to this transaction, you need to do a new assessment. Application and Acceptance Application of units should be made before the cut-off time at 3.00 p.m. with cleared payment on any business day. The units will be issued at NAV per unit calculated at the end of the business day (i.e. forward pricing ) on which the application to purchase is received by the Manager. Any application received after the cut-off time, the request will be deemed to have been received on the next business day. We reserve the right to vary the terms and conditions of investment and payment modes from time to time, which shall be communicated to you in writing. Note that we reserve the right to reject any application without providing any reason, whatsoever. We may also reject any application that is not complete and/or not accompanied by the required documents. 125

134 2016/2017 MASTER PROSPECTUS 9.2 PAYMENT METHODS Via Cheque, Bank Draft or Money Order Payment can be made by cheque, bank draft or money order drawn on a bank located in Malaysia in Ringgit Malaysia (RM), crossed, made payable to. Applicants are to write their name and NRIC or passport or corporate/institutional registration number at the back of the cheque, draft or money order. Application shall be processed based on the net amount received. Where payment is by cheque, the cheque must be issued by the investor. Via Bank Transfer Services (Telegraphic Transfer/Inter-Bank GIRO /Online Banking) Applicants may transfer the subscription proceeds directly into the bank account of PMB Investment Berhad via telegraphic transfer/inter-bank GIRO/online banking. Please include applicant s name in the transaction description where applicable for reference. Details of our principal bank accounts are as follows: Bank Account Number Maybank Islamic Berhad Public Islamic Bank Berhad CIMB Islamic Bank Berhad Bank Muamalat (Malaysia) Berhad Bank Islam (Malaysia) Berhad Via Auto debit You may choose to invest on a regular basis through a bank auto-debit (standing instruction) facility at the following financial institutions:- a) Bank Simpanan Nasional b) CIMB Bank Berhad c) Malayan Banking Berhad/Maybank Islamic Berhad d) RHB Bank Berhad/RHB Islamic Bank Berhad Via Salary Deduction If you are a Government servant, you can invest regularly by applying for a salary deduction instruction through ANGKASA. If you are in the private sector, you may check with your employer on the Employee s Salary Deduction Scheme for a regular monthly investment. EPF Members Investment Scheme (EPF MIS) You may also withdraw from your EPF Account 1, to be invested in a Fund approved by EPF under its Members Investment Scheme. To apply for the withdrawal, you are required to also complete a Borang KWSP 9N (AHL) for each application together with a Master Application Form for withdrawal to invest via the EPF Members Investment Scheme. Please note that investment through EPF MIS is subject to the terms and conditions set by the EPF and investors are therefore advised to check on the details accordingly from EPF. Investors are advised not to make payment in cash when purchasing units of a Fund via any institutional/retail agent. 126

135 MASTER PROSPECTUS 2016/ COOLING-OFF POLICY A first time investor with the Manager shall have the right, within 6 business days, commencing from the day the completed application is received and accepted by the Manager to withdraw his/her investment in the Fund. However, this cooling-off period does not apply to corporations or institutions, staff of the Manager and a person registered with a body approved by the SC to deal in unit trusts. An investor who exercises his/her right to withdraw during the cooling-off period is entitled to receive a full refund of the money initially invested i.e.:- - the NAV per unit on the day the units were first purchased; plus - the sales charge per unit originally imposed on the day the units were purchased. The money payable out of this transaction must be refunded to the investor within 10 days of the Manager s receipt of the repurchase request. 9.4 REPURCHASING/REDEEMING AN INVESTMENT You may redeem all or some of the units held on any business day by completing the Transaction Form together with a photocopy of your NRIC. Redemption for Funds other than PMB SCMF - For a request to redeem units received or deemed to have been received by us on or before 3.00 p.m. on any business day, units will be redeemed at the NAV per unit calculated at the end of business day on which the request is received ( forward pricing ). - Where the repurchase request is received after the cut-off time, i.e. after 3.00 p.m., the request will be deemed to have been received on the next business day. - Payment will be made within 10 days of the receipt of redemption request. - We reserve the right to vary the terms and conditions of repurchase/redemption mode from time to time, which shall be communicated to you in writing. Redemption for PMB SCMF - If a repurchase applications is received on or before 9.15 a.m., repurchase monies will be paid on the next business day (T+1). For repurchase application received after 9.15 a.m., the request is deemed to have been received on the next business day and the repurchase monies will be paid on the following business day. - The applicable repurchase price would be based on the NAV or unit at the end of the business day on which the request to repurchase is received by the manager. - In the event of any technical difficulties beyond the Manager s control or should the redemption request in the sale of units cannot be liquidated at an appropriate price or on adequate terms and is as such not in the interest of the existing Unit Holders, redemption monies may be paid at such other period or as may be permitted by the relevant authorities from time to time. Redemption related to EPF Members Investment Scheme - Redemption proceeds will be paid to the EPF and to be credited into your EPF account. General - No restriction is set on the frequency of redemption. For certificate holders, you can only redeem your units upon surrendering the unit certificate(s). - There is no minimum number of units for redemption but a Unit Holder must retain at least RM100 upon partial redemption (for all Funds except PMB SCMF) and at least RM1,000 upon partial redemption for PMB SCMF. 127

136 2016/2017 MASTER PROSPECTUS - No redemption fee is charged. However, any applicable bank charges and other bank fees incurred as a result of a withdrawal by way of telegraphic transfer, bankers cheque or other special payment method will be borne by the Unit Holder. - If the units are held in the names of more than one Unit Holder, where the mode of holding is specified as Joint Application, redemption request will have to be signed by all the joint holders unless the joint applicant is a minor. 9.5 CHANNELS TO PURCHASE AND REDEEM UNITS You may refer the address of our Head Office and list of our regional and agency offices and institutional unit trust agents on Section SWITCHING BETWEEN FUNDS Switching is a facility which enables you to convert units of a particular Fund for the units of our other Funds. Simply complete the Transaction Form. Unit Holders are required to enclose the certificate of investment (if any) upon switching. All Unit Holders are allowed to switch from one Fund to any other Funds managed by the Manager. The minimum amount you can switch is RM1,000 per transaction. Switching fee is as per condition below: - No switching fee will be imposed if switching is made to Fund with lower or no sales charge (e.g. equity fund to money market fund) - Up to RM25 per transaction if the sales charge of the Fund to be switched into is equal to the sales charge of the fund from which switching is made (e.g. equity fund to balanced fund) - At sales charge if the sales charge of fund to be switched into exceeds the sales charge of the fund from which switching is made (e.g. money market fund to equity fund). However, if the originating fund from which switching is made is from equity or balanced fund, the switching fee shall be up to RM25 only. - In addition. you shall be liable to pay any Goods and Services Tax imposed on you by virtue of any law, regulation, directive or order by any governmental authority in relation to the switching fee. - The Manager reserves the right to reject any switching request : i) that it regards as disruptive to efficient portfolio management; or ii) if deemed by the Manager to be contrary to the best interest of the affected Fund; To switch between the Funds managed by the Manager, you can simply complete the Switching Form at the Manager s Head Office, Regional and Agency Offices. (Please refer to Section 8.1 for switching). 9.7 TRANSFER OF UNITS An investor may transfer some or all of units held to another investor by completing a Transfer Form. Subject to the provisions of the Deed, transfer of unit can be made provided that the units registered thereof are not less than the minimum prescribed number of units. In the case of a death, bankruptcy or insanity, the units shall be transferred to the remaining/surviving joint holder provided that the age of remaining / surviving joint holder, if any, is at least 18 years old, or to the executors or administrators of the deceased and subject to the applicability of any Shariah principles (for Muslim investors). 128

137 MASTER PROSPECTUS 2016/2017 Both the transferor (the Unit Holder) and the transferee must complete the Transfer Form and submit it to the Manager together with the certificate or any supporting document to prove the title of the transferor. The Manager may refuse to register a transfer of less than RM100 or where the balance in the transferor s holding is less than RM100 in value at the time of transaction or any other amount as may be determined by the Manager from time to time (for all Funds except PMB SCMF) or where the balance in the transferor s holding is less than RM1,000 in value at the time of transaction for PMB SCMF or any other amount as may be determined by the Manager from time to time. The transfer shall be affected within 30 days from the date of receipt of the request. A fee of not exceeding RM10.00 will be charged for a transfer of units. In addition, you shall be liable to pay any Goods and Services Tax imposed on you by virtue of any law, regulation, directive or order by any governmental authority in relation to the transfer fee. 9.8 A QUICK GUIDE ON HOW TO BUY, SELL, SWITCH & TRANSFER How to Documents Required Minimum amount Make an Initial Investment Make Additional Investment Individual Investor: Pre-Investment Form by FIMM (for every new fund) Suitability Assessment Form Master Application Form Investment Request Form KWSP 9N(AHL) Form (if investing via the EPF MIS) A photocopy of NRIC (if the applicant is a Malaysian) or Passport (if the applicant is a non- Malaysian) Corporate investor: Master Application Form Pre-Investment Form by FIMM (for every new fund) Suitability Assessment Form Investment Request Form A copy of each of the company s resolution and certificate of incorporation (certified by a director or company secretary); List of authorised signatories and specimen signatures; Form 11, 13, 49 and other documents, if required Completed forms and documents required should be submitted together with payment or proof of payment. Individual Investor Investment Request Form A copy of NRIC (if the applicant is a Malaysian) or Passport (if the applicant is a non-malaysian); or KWSP 9N (AHL) Form (if investing via the EPF MIS) Corporate Investor: Investment Request Form For Initial investment : Direct purchase : i) RM100 - applicable to all funds except PMB SCMF ii) RM1,000 - applicable to PMB SCMF only. For additional investment: Direct purchase & Auto debit - RM50 129

138 2016/2017 MASTER PROSPECTUS Signed by authorized signatories and company stamp Board Resolution or any other necessary authorization Completed forms and documents required should be submitted together with payment or proof of payment. Redeem, Switching and Transfer Individual Investor (single/joint applicant ) Redeem/Switching Transaction Form A copy of NRIC (if the applicant is a Malaysian) or Passport (if the applicant is a non-malaysian) Pre-Investment Form (For switching to new Fund) Transfer Transfer Form A copy of NRIC (if the applicant is a Malaysian) or Passport (if the applicant is a non-malaysian) Corporate Investor Redeem/Switching Transaction form Signed by authorized signatories and company stamp Board Resolution or any other necessary authorization For both individual and corporate investor Repurchase/redemption: No minimum number of units; however, upon partial redemption/repurchase, at least RM100 value at the point of transaction should be retained (for all Funds except PMB SCMF) and at least RM1,000 value at the point of transaction should be retained for PMB SCMF. Switch & Transfer: For switching, at least RM1,000 per transaction. For transfer of units, the minimum amount may be determined by the Manager from time to time 9.9 INCOME DISTRIBUTION AND REINVESTMENT POLICIES Income Distribution Income of a Fund includes dividends from shares, profit from deposit placement and debt income securities, and capital gains realized from the disposal of investments in the Fund. The Fund may distribute all or part of its net income and or net realized capital gains to its Unit Holders at the discretion of the Manager, subject to the Trustee s approval. Potential investors are however advised that the distribution is subject to the Deed and the objective of each Fund, and after taking into consideration the total return of the Fund, income for the period, cash flow of the distribution, and stability and sustainability of the distribution of return. Income distribution will be paid to eligible Unit Holders via: - cheques; or - e-payment to the Unit Holder s bank account. In certain cases, upon presentation to the depositing banks or financial institutions, the distribution warrants or cheques may attract bank commission or transaction charges which will be borne by the Unit Holders. 130

139 MASTER PROSPECTUS 2016/2017 The income distributed may be in the form of units instead of cash. A statement of the distribution of units will be delivered to the Unit Holder within a reasonable time period, as permitted by the Guidelines. Unit Split The Fund may undertake a unit split exercise to reduce the price of the units and this can only be conducted once in every 12 month-period. The unit split exercise may be conducted at the time of the distribution of return or at any time within the financial year. Where the exercise is conducted within the financial year, the Fund needs to show a sustainable appreciation in its NAV in the preceding 6- month period. Reinvestment Policies Reinvestment instruction of income distribution may be applied by Unit Holders by marking the instruction in the application form. The distribution will be credited to the Unit Holder s investment account. The value of the reinvestment of distribution will be equivalent to the NAV per unit on the first business day following the Distribution Date. No charge will be imposed on the distribution reinvestment. However, if a Unit Holder wishes to reinvest the distribution upon receipt of distribution warrants / cash, such distribution reinvestment will be treated as normal sales of units. Auto Reinvestment Auto reinvestment will be applied to the followings: - Distribution amount of less than RM50, which will be reinvested at the unit price equivalent to the NAV per unit computed at the end of the next business day following the Distribution Date. No additional charge will be imposed on the distribution reinvestment. - Fund s distribution of income is by way of units, irrespective of the standing instruction given by the Unit Holders to the contrary. - Unit Holders should notify the Manager of their option for reinvestment and any change of address within fourteen (14) business days prior to each distribution date. Unclaimed Distribution Distributions (if any) if not claimed within 6 months after the date of payment will be automatically reinvested provided that the Unit Holder s account remains active and subject to the availability of units to be subscribed. In the event that Unit Holder s account is already closed, the monies will be sent to the Office of Registrar of Unclaimed Monies, Accountant General s Department as required under the Unclaimed Monies Act 1965 (as may be amended) DETERMINATION OF PRICE Forward Pricing The price of units of a Fund is determined based on the NAV per unit as at the next valuation point after a request for sales or repurchase of Units is received by the Manager. Dealing cut-off time for any units to be issued and/or redeemed is 3.00 p.m. on the business day except for PMB SCMF. For PMB SCMF, the dealing cut-off time is 9.15 a.m. Any application received after the cut-off time will be treated as it is received on the following business day. Single Pricing Regime (SPR) According to the SPR, the creation, cancellation, selling and buying/repurchase prices for units will be the NAV per unit on any transaction. For an example, the NAV per unit during a particular date is RM (before 4 decimal rounding adjustments). NAV per unit = Buying Price per unit = RM (rounded to 4 decimal places) 131

140 2016/2017 MASTER PROSPECTUS Computation of NAV and NAV Per Unit The NAV of the Fund is determined by deducting the value of the Fund s liabilities from the value of the Fund s assets, at a valuation point. Illustration : For illustration purposes, assuming the figures of a relevant day are as below: Value of the Fund s Assets = RM100,000, Value of the Fund s Liabilities = RM500, Units in Circulation = 150,000,000 Annual Management Fee = 1.5% per annum Annual Trustee Fee = 0.1% per annum The NAV of the Fund will be: RM Fund s asset 100,000, Less: Fund s liabilities (500,000.00) Net asset value (before annual management fee & trustee fee) 99,500, Less: Management fee (1.5% per annum) (4,089.04) Trustee fee (0.1% per annum) (272.60) NAV of the Fund of the day (before GST) 99,495, Less: GST of 6% on the management fee (245.34) GST of 6% on the trustee fee (16.36) NAV of the Fund of the day (after GST) 99,495, The NAV per unit of the Fund will be: NAV per unit = NAV of the Fund / Unit in Circulation = RM 99,495,376.66/ 150,000,000 = RM (before rounding adjustment) = RM (rounded to 4 decimal points) Amount Payable Upon Sales of Units Units will be sold at the NAV per unit of the Funds. Any sales charge payable by the Unit Holder would be calculated as a percentage of the NAV per unit of the Funds. For illustration purposes, assume the following; Price/ NAV per unit = RM Sales charge per unit = 6.0% Goods & Services Tax = 6.0% 132

141 MASTER PROSPECTUS 2016/2017 Amount invested Purchase of 10,000 units Purchase with proceeds of RM10,000 = Units purchased x Price per Sales charge = Sales charge + (Sales charge x unit with GST 6.0%) = 10,000 x RM = 6% + (6% x 6%) = RM5, = 6.36% Sales charge = Price per unit x Sales charges per unit x Units purchased = RM x 6.0% x 10,000 units Amount payable per unit = RM = RM = Price per unit + (Price per unit x Sales charge with GST) = RM (RM x 6.36%) GST = Sales charge x 6.0% Units received = Proceeds / amount payable per unit = RM x 6.0% = RM10,000-00/RM = RM18.00 = 18, units Total payable = Amount invested + sales charges + GST Amount invested = Units received x price per unit = 18, x RM = RM5, RM = RM9, RM18 = RM9, (to the nearest 2 = RM5, decimal points) Sales charge = 18, x RM X 6.0% = RM = RM (to the nearest 2 decimal points) GST = RM x 6.0% = RM = RM33.85 (to the nearest 2 decimal points Total payable = Amount invested + sales charges + GST = RM RM RM33.85 = RM10, Amount Received Upon Repurchase of Units As the redemption or buying price per unit of the Fund is equivalent to the NAV per unit, the total amount received upon a repurchase of units will be equivalent to (the number of units redeemed x the redemption price or buying price per unit) less (redemption charge x number of units redeemed.) However, PMB Investment does not imposed any charges on redemption during the lifetime of the Master Prospectus. Illustration of Amount Received upon Redemption of units is shown below:- Amount received = (units redeemed) x (redemption price or buying price per unit) (redemption charge x number of units redeemed) = (10,000 units x RM0.5000) (0 x 10,000 units) = RM5,

142 2016/2017 MASTER PROSPECTUS Incorrect Pricing In case pricing discrepancies in the calculation of NAV occurs, the Manager will take immediate remedial action to rectify the Unit pricing at the Fund s level. The money will be reimbursed to the Unit Holder if the error is more than 0.5% of the Unit NAV or RM10.00 in absolute amount whichever is higher. Nevertheless, for a reimbursement of a lesser amount, it will be up to the Manager s discretion. 134

143 MASTER PROSPECTUS 2016/ MANAGEMENT OF THE FUNDS 10.1 THE MANAGER S PROFILE (PMB Investment), formerly known as ASM Investment Services Berhad (ASM Investment), is a wholly owned subsidiary of Pelaburan MARA Berhad (PMB). Its principal activities are unit trust and funds management. It is an Islamic fund management company. Incorporated on 15 January 1993 under the Companies Act, 1965 as ASM MARA Unit Trust Management Berhad (ASM MARA Unit Trust), PMB Investment assumed the unit trust operations from PMB, then known as Amanah Saham MARA Berhad (ASMB), and its related staff. This was done following the requirement of the Securities Commission Act, 1993 that unit trust funds are to be managed by a unit trust management company. PMB commenced operations in the late 1967 and its first unit trust fund was established on 6 April 1968 which is now known as PMB Dana Al-Aiman. ASM MARA Unit Trust had its name changed to ASM Investment on 9 October 2006 and it took over the fund management operations of ASM Asset Management Sdn Bhd, another wholly-owned subsidiary of PMB, to streamline the unit trusts and funds management activities of the group. ASM Investment had its name changed to PMB Investment on 28 February PMB Investment is licensed under the Capital Markets and Services Act, 2007 and its licence was converted to an Islamic fund management company on 28 November It appointed Amanie Advisors Sdn Bhd in Dec 2014 as its Shariah adviser. The company has an authorised capital of RM10 million, of which RM8 million has been fully paid. The PMB group concern has more than 45 years of experience in managing unit trust funds. As at 29 February 2016, PMB Investment managed 13 unit trust funds and 2 wholesale funds valued at RM309.2 million. Total fund size under management for unit trust funds, wholesale funds and portfolio mandates was RM1.18 billion as at end February BOARD OF DIRECTORS Datuk (Dr) Zamani bin Md Noor - Independent /Chairman Dato Sri Haji Abd Rahim bin Haji Abdul - Independent Professor Dr. Faridah binti Haji Hassan - Independent Haji Mansoor bin Ahmad - Independent Dato Mohamad Safie bin Haji Asnawi - Independent Nik Mohamed Zaki bin Nik Yusoff - Independent Ahmad Nazim bin Abd Rahman - Non-Independent Ameer Ali bin Vali Mohamed - Non-Independent /Chief Executive Officer 10.3 MANAGEMENT TEAM Ameer Ali bin Vali Mohamed Ameer is the Chief Executive Officer of PMB Investment. He joined the Manager on 2 April 2012 and brought with him more than 20 years of experience in the capital markets, having entered into the securities industry in December 1990 as an investment analyst. He held positions in research analysis and portfolio management including as fund manager of the then Arab-Malaysian Unit Trusts Berhad; senior manager of Affin Fund Management Sdn Bhd; head of investment external clients for Mayban Investment Management Sdn Bhd before entrusted to establish and head its Business Development Department; and CEO/CIO of OSK Asset Management Sdn Bhd. Prior to joining PMB Investment, he was the CE/Managing Director of Amanah Saham Kedah Berhad. 135

144 2016/2017 MASTER PROSPECTUS Among others, Ameer was the second-man in a team that was involved in the development of Malaysia s first privately managed Islamic equity unit trust fund that was launched in early He was the first batch graduate of Bachelor of Business Administration (Hons) degree from the International Islamic University Malaysia, where he graduated in 1988 with second class upper honours. He started as a financial journalist with the then Business Times before entering into the securities industry. He is the holder of a Capital Market Services Representative Licence (Islamic fund management). Isnami bin Ahmad Mohtar Isnami was appointed Acting Chief Investment Officer effective on 10 April He has more than 15 years of experience in the funds management industry, starting in 1996 when he was appointed Senior Investment Officer at PMB Investment to manage some Bumiputera funds. He was subsequently promoted to Portfolio Manager in 2000 and was given larger responsibilities to manage Shariah and conventional unit trust and corporate funds. He was made Senior Manager, Fund Management in He joined Inter-Pacific Asset Management Sdn Bhd in August 2007 as a Fund Manager, managing unit trust and corporate funds. He rejoined PMB Investment in April 2010 and was re-designated Head, Equity in January Isnami holds a Bachelor of Science degree in Business Administration (Finance) from University of North Carolina at Charlotte, USA. He is the holder of a Capital Markets Services Representative Licence (Islamic fund management). Zulkefli bin Tan Sri Yahya Zulkefli is the Chief Sales Officer and joined the company on 7 January He is responsible for the overall sales of the company. He brought with him an extensive experience in marketing and sales of financial products and services. Prior to joining PMB Investment, he was with Affin Fund Management Berhad for 3 years as Vice President, Business Development and Marketing. He was once the GM/CEO of Asia Unit Trusts Berhad ( ) and CEO of Amanah Ventures Berhad ( ), responsible primarily for product development and expanding assets under management. He graduated with a B.A in Social Science (Economics/Law) from Canberra College of Advanced Education, Australia. Mohd Adzhar bin Abd Hamed Adzhar is the Deputy General Manager/Head, Compliance and Risk Management, PMB and he is responsible for PMB Investment s compliance matters related to the statutory and regulatory requirements, and risk management. He possesses a Diploma in Banking Studies from UiTM and a Bachelor of Corporate Administration (Hons) from the same university. He joined PMB on 1 March Prior to that, he was attached with one of the leading financial institutions in Malaysia for almost 6 years. He is the designated Compliance Officer of PMB Investment, and registered with the SC. Marina binti Ghazali Marina is the Head of Marketing. She holds a Diploma in Mass Communication from UiTM. She has more than 25 years of experience in marketing communications including public relations, advertising and promotion. Currently, Marina manages the functions of investor relations, strategic marketing, advertising and promotion. Prior to joining PMB Investment, she was attached to PMB as the Head of Human Resource Development and Corporate Communication. Marina was also with Park May Berhad ( ) and a government agency ( ). Aida binti Abu Bakar Aida is the Head of Fund Administration. She joined the PMB Group in 1997 as a Senior Executive, Projects and Venture Capital. In 2000, she was transferred to PMB Investment and has since accumulated more than 15 years of experience in unit trust, attached to several departments within the company covering product research and development, business development, investment, unit 136

145 MASTER PROSPECTUS 2016/2017 trust operations, marketing and promotion, customer administration and services, and agency services. She has been instrumental in developing and launching PMB Investment s Shariah retail products and experience in merger, liquidation and conversion of unit trust schemes. Currently she manages the functions of product development, trust administration and trust governance of PMB Investment. She started her career in 1995 with a public listed company, Kumpulan Guthrie Berhad where she gained exposure in accounting and finance. She holds a Master of Business Administration from University of Wales, United Kingdom and a Bachelor of Arts in Accounting and Financial Management from University of Essex, United Kingdom. Marlina binti Hj. Bustanuddin Marlina is the Manager, Accounts of PMB Investment. She is responsible for the overall function of the company accounts, unit trust accounts and portfolio accounts. She obtained her Bachelor of Accountancy from UiTM in June 2001 and Diploma in Accountancy from the same university in November She is also a member of the Malaysian Institute of Accountants (MIA). Marlina has been with the PMB Investment since SUMMARY OF FINANCIAL POSITION Audited Year 31 December (RM 000) Authorized Capital 10,000 10,000 10,000 Paid-up Capital 8,000 6,000 5,000 Share Premium 1,000 1,000 1,000 Shareholders Funds 11,884 10,550 11,161 Turnover 273, ,861 82,638 Pre-tax Profit/ (Loss) (1,049) After Tax Profit (1,049) 10.5 ROLES, DUTIES AND RESPONSIBILITIES OF THE MANAGEMENT COMPANY PMB Investment is responsible for the day-to-day management of the Funds, in accordance with the provision of this Master Prospectus (as amended from time to time) the Deeds, Act and the Guidelines on Unit Trust Funds. Our main functions, duties and responsibilities include but not limited to the following:- a) Marketing, distribution, sale and repurchase of units of the Funds; b) Maintenance of proper records of the Funds; c) Distributing annual and interim reports of the Funds; d) Providing customer services; e) To ensure that the interests of the Unit Holders are best served and protected at all times; f) To formulate and propose for implemention the portfolio strategy in line with the Funds investment objective and Investment Committee direction; 137

146 2016/2017 MASTER PROSPECTUS g) To review the performance and portfolio composition of the Funds and to make the necessary recommendations thereof to the Investment Committee; h) To review the market trend (both local and international) and make the necessary recommendation to the Investment Committee; i) To recommend securities or other investment instruments in line with the Funds objectives; j) To undertake in depth market and company research so as to assist in the investment decision making; and k) To be responsible for the day to day management of the Funds consistent with the Guidelines and the direction of the Investment Committee MANAGER S DELEGATE PMB Investment has delegated the following functions to PMB: a) Information Technology b) Human Resource Development c) Corporate Communications d) Administration e) Compliance f) Operational Risk Management g) Internal Audit h) Business Strategy and Planning PMB is a strategic investment and asset management company wholly-owned by Majlis Amanah Rakyat (MARA), a statutory agency of the Government of Malaysia. Established on 24 June 1967, PMB is principally involved in private equity investments, portfolio fund management, unit trust management, financial services and corporate advisory. PMB is the parent company of PMB Investment. The roles and responsibilities of PMB, being the delegate of the Manager, are (a) to ensure that the functions are discharged in effective and efficient manners; (b) to communicate to the Manager on any relevant changes or latest development related to the functions; (c) to consider, propose and implement any relevant improvements related to the functions; and (d) to ensure that the relevant laws governing the Manager are complied with at all times MATERIAL LITIGATION AND ARBITRATION As at 29 February 2016, PMB Investment was not engaged, pending or threatened, in any material litigation and arbitration. It was also disclosed under the Directors Report that there is no contingent liability that will or may substantially affect our ability to meet the obligations as and when they fall due. 138

147 MASTER PROSPECTUS 2016/ INVESTMENT COMMITTEE Profile of Investment Committee Members a) Haji Mansoor bin Ahmad (Independent/Chairman) Mansoor received his Bachelor of Economics (Hons) degree from the University of Malaya and Master of Business Administration from the Australian Graduate School of Management, University of New South Wales, Sydney, Australia. He joined Komplek Kewangan Malaysia Berhad in September 1975 as a Research Officer and was later transferred to PMB and became an Investment Officer in He was promoted as Head of Investment and Corporate Development in 1991 and as General Manager of Operations in 1996, overseeing all investment and business development function of PMB. In 1999, he was seconded to ASM Asset Management Sdn. Bhd, a licensed fund management company as a General Manager and served in that capacity until March He was transferred to PMB Investment and was subsequently appointed as the Chief Executive Officer on 2 May 2002 and also as an Executive Director on 1 April He was appointed as a member of the Investment Committee on 6 June He was also elected as a Council Member of FIMM for two (2) consecutive two-year terms since On 1 December 2006, Mansoor Ahmad was re-designated as the Executive Director/Adviser of PMB Investment. He retired on 6 July 2007 and thereafter has served as the Director of PMB Investment until today. b) Nik Mohamed Zaki bin Nik Yusoff (Independent) Nik Mohamed Zaki was appointed as a member of the Investment Committee on 15 June He graduated from Carleton University, Ottawa, Canada in 1985 and holds a Bachelor of Commerce (Hons) Degree. He has more than 25 years of experience in the financial industry. He started his career with financial institutions in commercial banking before furthering his career in merchant banking with Affin Investment Bank Berhad. He left the banking sector in 1994 to join PMB as Head, Corporate Development Unit and has been part of Group s Senior Management team since In PMB Group, he has gained further experience in fund management, unit trust operations, strategic and financial planning and venture capital/equity investment amongst others. He retired as the Group Chief Executive Officer of PMB on 30 April He has served as a Board member of PMB Investment since May c) Professor Dr. Mohamed Aslam bin Mohamed Haneef (Independent) Professor Dr. Mohamed Aslam was appointed a member of the Investment Committee on 1 January He is currently a Professor of Economics at the Economics Department and Director, Centre for Islamic Economics at the International Islamic University, Malaysia (IIUM) in Kuala Lumpur. He previously served as an Investment Committee member of a local fund management company for 13 years from September 2001 to October He was in the pioneer batch of Bachelor of Economics (Hons) graduates from IIUM in 1987, obtained his Master s degree in Economics from University Malaya in He received his PhD in 1994 from the School of Development Studies, University of East Anglia, United Kingdom. He was conferred with Associate Professor in 2000 and Professor in Mohamed Aslam is also an executive committee member of the International Association for Islamic Economics (IAEI) and an executive committee member of the International Council of Islamic Finance Educators (ICIFE). He has written a number of books, articles, chapters in books and book reviews. d) Ahmad Nazim bin Abd Rahman (Non-Independent) Ahmad Nazim was on 15 July 2013 appointed as Group Chief Executive Officer of Pelaburan MARA Berhad, an investment and asset management firm wholly-owned by the Government of Malaysia. He was previously Chief Executive Officer of a regional telecommunication group and had served as President Director of its Indonesian subsidiary, responsible for the group s telecommunication 139

148 2016/2017 MASTER PROSPECTUS infrastructure business in the region. He is also a member of the board of Singapore-based private equity funds Al Masah Capital (Asia) Pte Ltd. Ahmad Nazim started his career in law and corporate finance and had worked with firms in Kuala Lumpur and London and with Securities Commission of Malaysia. He obtained his Bachelor of Laws (Hons) from IIUM in 1999 and Master of Laws from Georgetown University, Washington, DC, USA in Roles and Functions of the Investment Committee The functions and responsibilities of the Investment Committee are as follows:- a) To ensure the investment management policies of the Funds are consistent with the Funds objectives, this Master Prospectus (as amended from time to time), the Deeds and the Guidelines and other relevant laws; b) To formulate investment policies and plan, and to select appropriate strategies to meet the Funds objectives; c) To provide guidance and advice in the implementation of the strategies; d) To actively monitor, measure and evaluate the investment performance of the Funds and the Fund Manager; e) To consider other matters deemed necessary for the benefit of the Funds; and f) To recommend the Funds income distribution and/or unit splitting for the Trustee s approval. g) To meet at least once every two (2) months to monitor the fund management activities of the Management Company SHARIAH ADVISER OF THE FUNDS Profile of the Shariah Adviser BIMB Securities Sdn Bhd (BIMBSEC) is a stockbroking subsidiary of BIMB Holdings Bhd. It was incorporated on 21 February The company s corporate mission is to actively participate in a modern, innovative and dynamic Islamic capital market in Malaysia, catering for the needs of both Muslims and Non-Muslims. BIMBSEC is a registered Shariah Adviser under Securities Commission and has been offering Shariah advisory services for Islamic capital market products (ICM) such as Islamic investment funds, Sukuk issuance and other approved ICM instruments for more than 15 years. BIMBSEC is a Corporate Shariah Adviser to 22 Islamic unit trust funds. As at 29 February 2016, the staff strength of BIMBSEC consists of 71 employees of whom 63 are executive staff and 8 are nonexecutive staff. The company has an authorised share capital of RM250 million, and its current issued and paid-up share capital is RM100 million. The shareholdings of BIMBSEC are as follows:- Shareholders BIMB Securities Holdings Sdn Bhd (wholly owned subsidiary of BIMB Holdings Berhad) % of Holding 51 BIMB Holdings Berhad

149 MASTER PROSPECTUS 2016/ BOARD OF DIRECTORS Name Position Mohd Zin bin Idris Rashid bin Ismail Dato Johan bin Abdullah Abdul Kadir bin Sahlan Mohamad Rani Dali bin Samsudin Mustapha bin Hamat Non-Executive Director Executive Director/CEO Non-Executive Director Non-Executive Director Executive Director Non-Executive Director DESIGNATED PERSON RESPONSIBLE FOR SHARIAH MATTERS Ir. Dr. Muhamad Fuad bin Abdullah Ir. Dr. Muhamad Fuad, the designated person in-charge of all Shariah matters in BIMBSEC is appointed to the Shariah Advisory Committee of BIMBSEC effective 1 June He graduated with a Bachelor of Science Degree in Electrical Engineering in 1977 and a Master of Philosophy Degree in Electrical Engineering in 1982 both from the University of Southampton, England. He also obtained a Bachelor of Arts (Jayyid) Degree in Shariah from the University of Jordan in 1994 and a Doctor of Philosophy in Muslim Civilization from the University of Aberdeen, Scotland in Currently Dr. Muhamad Fuad serves as the Chairman of the Shariah Committee of MIDF Group of Companies and a member of the Group Shariah Committee of MNRB Holdings Bhd. He is a registered Shariah Adviser with the Securities Commission Malaysia (SC) which qualifies him to advise on Shariah-compliant products and services regulated by the SC. He is also a registered Shariah lawyer of Majlis Agama Islam Perak and an Adjunct Professor of Universiti Teknikal Malaysia Melaka (UTeM). He sits on the boards of Sime Darby Bhd, Sime Darby Energy Sdn Bhd, Sime Darby Utilities Sdn Bhd, MIDF Property Berhad, Mesiniaga Berhad and Institut Kefahaman Islam Malaysia (IKIM), a public company limited by guarantee. Dr. Muhamad Fuad is the designated Shariah person in-charge of PMB Investment s Funds ROLES AND FUNCTIONS OF SHARIAH ADVISER a. The responsibilities of the Shariah Adviser are to ensure that the Funds are managed and operated in accordance with Shariah principles, relavant SC regulations and/or standards including resolutions issued by the SAC. b. The Shariah Adviser shall provide expertise and guidance for the Funds in all matters relating to Shariah principles, including on the Deeds and prevailing Master Prospectus, its structure and investment process and other operational matters. c. Where there is any ambiguity or uncertainty as to an investment, instrument, system, procedure and/or process, the Shariah Adviser shall consult the SC. d. The Shariah Adviser is responsible to review the Funds compliance report as provided by the compliance officer and investment transaction report provided by or duly approved by the Trustee, to ensure that the Funds investments are in line with Shariah principles. e. The Shariah Adviser shall prepare a report to be included in the Funds interim and annual report certifying whether the Funds have been managed and operated in accordance with Shariah principles for the period concerned. 141

150 2016/2017 MASTER PROSPECTUS f. The Shariah Adviser shall meet with the Fund Manager on a quarterly basis or any other ad-hoc meeting as required for review of the Fund s management and investment to ensure compliance with Shariah principles or any other relevant principle at all times DESIGNATED FUND MANAGERS Ameer Ali bin Vali Mohamed The detailed profile is as aforementioned in Section Isnami bin Ahmad Mohtar The detailed profile is as aforementioned in Section He manages PMB Mutiara, PMB SMCF and PMB SBF. Norzahari bin Zakaria Norzahari is the Head of Research and reports to the Acting CIO. He is responsible for the overall management of the investment research activities of the company, including but not limited to economic research, equity research, fixed income research and money market research. He also manages some equity funds. Norzahari has been in the financial industry since September 1990 with extensive experience in credit review, credit marketing, credit control, business development, venture capital as well as equity research and fund management. He joined PMB in July 2000 and was initially attached to its Project Department where his job scope was overseeing the venture capital and credit activities of the company. Subsequently in February 2006, he was transferred to ASM Asset Management Sdn Bhd and later to PMB Investment. He assumed the current position in January Norzahari holds a Diploma in Business Studies and BBA (Hons) Finance from UiTM. He is the holder of a Capital Markets Services Representative Licence (Islamic fund management). He manages PMB Al-Aiman, PMB Bestari and PMB STEF. Suliman bin Bakar Suliman is the Senior Manager, Portfolio. He joined the Manager on 5 October Prior to joining PMB Investment, he was with Kedah Islamic Asset Management Berhad from 1995 until 2015 and his last position was Executive Director / Head of Portfolio and Research Department. Prior to that, he was attached with one of the leading financial institutions in Malaysia from 1991 until He has accumulated more than 21 years of experience in fund management industry. He holds a Diploma in Accountancy from UiTM. He is the holder of a Capital Markets Services Representative Licence (Islamic fund management). He manages PMB STF. Adil Azhar bin Ibrahim Adil Azhar is the Portfolio Manager, Fixed Income. He manages fixed income portfolios as well as monitors and conducts analysis on fixed income securities and money market instruments. He joined PMB in October 2013 as Portfolio Manager, Direct Investment and was responsible for the overall due diligence on all potential investments before being assigned to the current position in PMB Investment in July He was previously attached to the Investment Operations and Financial Market Department of Bank Negara. Adil Azhar holds a Degree in Engineering from Hokkaido University, Hokkaido, Japan. He is the holder of a Capital Markets Services Representative Licence (Islamic fund management). Amirul Imran bin Ahmat Amirul Imran is the Portfolio Manager, Fixed Income. He monitors and conducts analysis on fixed income securities and money market instruments. He joined PMB in June 2014 as Portfolio Manager, Investment Management and was responsible for the overall due diligence on all potential investments before being assigned to the current position in PMB Investment in March Prior to that, he held positions in banking industry including as Assistant Vice President of Affin Investment Bank Berhad, Manager of RHB Islamic Bank Berhad, Manager of AmInvestment Bank (M) 142

151 MASTER PROSPECTUS 2016/2017 Bhd and Portfolio Manager of Kumpulan Wang Persaraan Berhad. Amirul Imran holds a B.A (Hons) Business Administration from University of East London. He is the holder of a Capital Markets Services Representative Licence (Islamic fund management). Mohd Redzuan bin Mohd Isa Mohd Redzuan is the Assistant Manager, Research and he also manages portfolio. He joined PMB Group in April 2002 and was attached to various departments within the Group. He was transferred to PMB Investment in January 2010 as an Investment Analyst and assumed the current position in September Prior to joining the Group, he served Malaysia Insurance Institute as Senior Executive and was among the pioneers Paid Dealer s Representative with Perak Traders Sdn Bhd (later known as M&A Securities Sdn Bhd) for 10 years. For the period January January 2016 he was seconded to the Ministry of Higher Education under the Cross Fertilization Program coordinated by TalentCorp Malaysia. Redzuan holds a Master of Business Administration from University of Malaya, Bachelor of Business Administration from Temple University, Pennsylvania, USA and Diploma in Actuarial Science from UiTM. He is the holder of a Capital Markets Services Representatives Licence (Islamic fund management). He manages PMB SDF, PMB SAF, PMB SGF and PMB SPF. Norhazira binti Mazelan Norhazira is the Assistant Portfolio Manager. She assists in managing fixed income portfolios as well as monitors and conducts analysis on fixed income securities and money market instruments. She joined PMB in February 2014 as Senior Executive, Investment Management, and was responsible for assisting in money market and fixed income transactions before being assigned to the current position in PMB Investment in June She was previously attached to Small Medium Enterprise Development Bank of Malaysia Kuala Lumpur as an Associate for its Treasury and Investment Department. Norhazira holds a Bachelor of Business Administration Hons (Finance) from UiTM. She is the holder of a Capital Markets Services Representative Licence (Islamic fund management). She manages PMB SCMF. Nur Raihan binti Munir Nur Raihan is the Assistant Portfolio Manager. She assists in managing fixed income portfolios as well as monitors and conducts analysis on fixed income securities and money market instruments. She joined PMB in June 2014 as Senior Executive, Investment Management, and was responsible for assisting in money market and fixed income transactions before being assigned to the current position in PMB Investment in November She was previously attached to Small Medium Enterprise Development Bank of Malaysia Kuala Lumpur as an Associate for its Treasury and Investment Department. Nor Raihan holds a Bachelor of Business Administration Hons (Finance) from UiTM. She is the holder of a Capital Markets Services Representative Licence (Islamic fund management). Siti Rafidah binti Ghazali Siti Rafidah is the Executive, Portfolio Solutions, and an alternate designated fund manager. She joined PMB Investment in January 2013 as an Equity Analyst. Prior to that, she was attached to Henry Butcher Malaysia (Sel) Sdn Bhd as a Valuation Executive in 2012 and Warisan Mukmin Sdn Bhd as an Investment Executive. Siti Rafidah holds a Bachelor of Real Estate Management from UiTM. She is the holder of a Capital Markets Services Representative Licence (Islamic fund management). Nahdatul Syima binti Mohd Saad Syima is an Equity Analyst and an alternate designated fund manager. She joined PMB Investment in January Prior to that, she was attached to Public Bank Berhad as a Graduate Trainee (Credit Analyst for Hire Purchase) in Syima holds a Bachelor of Business Administration and Diploma in Investment Analysis from UiTM. She is the holder of a Capital Markets Services Representative Licence (Islamic fund management). She manages PMB SIF. 143

152 2016/2017 MASTER PROSPECTUS 11. THE TRUSTEE OF THE FUNDS 11.1 AMANAHRAYA TRUSTEES BERHAD Company Profile AmanahRaya Trustees Berhad (ART) is the trustee for PMB Dana Al-Aiman, PMB Dana Bestari, PMB Dana Mutiara, PMB Shariah Aggressive Fund, PMB Shariah Growth Fund, PMB Shariah Index Fund, PMB Shariah Premier Fund, PMB Shariah Balanced Fund, PMB Tactical Fund and PMB Shariah Cash Management Fund. ART was incorporated on 23 March 2007 under the Companies Act, 1965 and registered as a trust company under the Trust Companies Act, ART is a subsidiary of Amanah Raya Berhad (ARB) which is wholly owned by the Minister of Finance (Incorporated). ART took over the corporate trusteeship functions of ARB and acquired ARB s experience of more than 49 years in trustee business. ART has been registered and approved by the SC to act as trustee to unit trust funds and has 204 unit trust funds under its trusteeship. As at 29 February 2016, ART has 88 staff (66 executives and 22 nonexecutives). ART has an authorized share capital of RM5,000,000. Its issued and paid-up share capital is RM2,000,000 and RM1,000,000 respectively. Board of Directors Dato Haji Ismail bin Ibrahim (Chairman) - Independent, Non-Executive Director Dato Haji Che Pee bin Samsudin - Non-Independent, Non-Executive Director Datuk Johar bin Che Mat - Non-Independent, Non-Executive Director Tuan Haji Zulkifly bin Sulaiman - Independent, Non-Executive Director Tuan Haji Mansor bin Salleh - Non-Independent, Non-Executive Director Puan Mahfuzah binti Baharin - Non-Independent, Non-Executive Director Chief Executive Officer Hajjah Habsah binti Bakar Summary of Financial Position Year Ended (Unaudited) (RM 000) (RM 000) (RM 000) Paid-Up Share Capital 1,000 1,000 1,000 Shareholders funds 11,144 9,657 9,421 Turnover 32,205 30,326 27,861 Profit before tax 24,311 22,806 20,332 After Tax Profit/Loss 18,887 17,236 15,281 Material Litigation As at 29 February 2016, ART was not engaged in any material litigation and arbitration, either as plaintiff or defendant, and ART is not aware of any proceedings, pending or threatened or of any facts likely to give rise to any proceedings which might materially affect the business financial position of ART. 144

153 MASTER PROSPECTUS 2016/ CIMB ISLAMIC TRUSTEE BERHAD Company Profile CIMB Islamic Trustee Berhad was incorporated on 19 January 1988 and registered as a trust company under the Trust Companies Act, 1949 and having its registered office at Level 13, Menara CIMB, Jalan Stesen Sentral 2, Kuala Lumpur Sentral 50470, Kuala Lumpur, Malaysia. The Trustee is qualified to act as a trustee for collective investment schemes approved under the Capital Markets and Services Act CIMB Islamic Trustee Berhad has an authorised capital of RM5,000,000 divided into 500,000 ordinary shares of RM10 each of which the total issued capital is RM2,000,000 divided into 200,000 ordinary shares of RM10 each, and the total paid up capital is RM1,000,000 divided into 200,000 ordinary shares of RM10 each and partly paid-up at RM5 each. As at 29 February 2016, CIMB Islamic Trustee Berhad acts as trustee to one (1) real estate investment trust funds, twenty two (22) unit trust funds, twenty two (22) wholesale funds and one (1) private retirement scheme (consisting of three (3) funds) and has more than twenty six (26) years of experience as a trustee to unit trust funds. In addition to overseeing these funds, CIMB Islamic Trustee Berhad also acts as trustee to private debt securities issues such as Sukuk, bonds and notes. Other than being the administrator of deceased s estates, executor of wills, trustee for minors or incapacitated persons, CIMB Trustee also acts as trustee for public, charitable, staff retirement, and pension/ gratuity fund scheme, custodian trustee for associations, clubs and others. CIMB Islamic Trustee Berhad is supported by twenty (20) staff, comprising of sixteen (16) executives and four (4) non-executives as at 29 February Board of Directors Zahardin bin Omardin - Non-Executive, Independent Director & Chairman Mohamad Safri bin Shahul Hamid - Non-Executive, Non-Independent Director Liew Pik Yoong - Executive, Non-Independent Director Chief Executive Officer Liew Pik Yoong Summary of Financial Position Year Ended 2014 (RM 000) 2013 (RM 000) 2012 (RM 000) Paid-Up Share Capital 1,000 1,000 1,000 Shareholders Fund 5,018 6,573 6,311 Turnover * 3,403 2,788 4,000 Profit Before Tax 1, ,386 Profit After Tax *Only Shariah-compliant income are recognized since the entity s conversion to Islamic in Trustee s Delegate CIMB Islamic Trustee Berhad has appointed CIMB Bank Berhad (CIMB Bank) as the Custodian of the Fund s assets. CIMB Bank's ultimate holding company is CIMB Group Holdings Berhad. a listed 145

154 2016/2017 MASTER PROSPECTUS company in Bursa Malaysia and currently the second largest financial services provider in Malaysia. CIMB Bank provides full fledged custodial services, typically clearing settlement and safekeep all types of investment assets and classes, to a cross section of investors and intermediaries client base, both locally and overseas. For the local Ringgit assets, they are held through its wholly owned nominee subsidiary CIMB Group Nominees (Tempatan) Sdn Bhd. For foreign non-ringgit assets, CIMB Bank appoints global custodian as its agent bank to clear, settle and safekeep on its behalf and to its order. All investments are automatically registered in the name of the custodian to the order of the Trustee. CIMB Bank Berhad acts only in accordance with instructions from the Trustee. Material Litigation As at 29 February 2016, CITB was not engaged in any material litigation and arbitration, including those pending or threatened, and any facts likely to give rise to any proceedings which might materially affect the business/financial position of CITB or any of its delegates TRUSTEE S STATEMENT OF RESPONSIBILITY Each Trustee has given its willingness to assume the position as Trustee of the Funds and all the obligations in accordance with the Deed, all relevant laws and rules of law ROLES, DUTIES AND RESPONSIBILITIES OF THE TRUSTEE The functions, duties and responsibilities of each Trustee are set out in the Deed. The general functions, duties and responsibilities of the Trustee include, but are not limited to, the following:- a) Take into custody the investments of the Fund and hold the investments in trust for the Unit Holders; b) Ensure that the Manager operates and administers the Fund in accordance with the provisions of the Deed, SC Guidelines and acceptable business practice within the unit trust industry; c) As soon as practicable notify the Securities Commission Malaysia of any irregularity or breach of the provisions of the Deed, SC Guidelines and any other matters which in the Trustee s opinions may indicate that the interests of unit holders are not served; d) Exercise reasonable diligence in carrying out its functions and duties, actively monitoring the operation and management of the Fund by the Manager to safeguard the interests of Unit Holders; e) Maintain, or cause the Manager to maintain, proper accounting records and other records as are necessary to enable a complete and accurate view of the Fund to be formed and to ensure that the Fund is operated and managed in accordance with the Deed of the Fund, Prospectus, the SC Guidelines and securities law; and f) Require that the accounts be audited at least annually. Each Trustee has covenanted in the Deed that it will exercise all due diligence and vigilance in carrying out its functions and duties, and in safeguarding the rights and interests of Unit Holders TRUSTEE S DECLARATION Each Trustee is independent of the Manager. The Trustee will carry out transactions on an arm s length basis and on terms which are best available for the Funds, as well as act at all times in the best interest of the Unit Holders. The Trustee also has adequate procedures and processes in place to prevent or control conflicts of interest. 146

155 MASTER PROSPECTUS 2016/ TRUSTEE S OBLIGATION Each Trustee s obligation in respect of monies paid by an investor for the application of units arises when the monies are received in the relevant account of the Trustee for the Funds and the Trustee s obligation is discharged once it has paid the redemption amount to the Manager. 147

156 2016/2017 MASTER PROSPECTUS 12. SALIENT TERMS OF THE DEED 12.1 RIGHTS AND LIABILITIES OF A UNIT HOLDER Your rights a) The right to receive the distributions of income (if any), participate in any increase in the value of the Units andto enjoy such other rights and privileges as provided for in the Deed. b) Subject to the provosions of the Deed, the right to call for a Unit Holders meeting for any resolutions, and also to vote for the removal of the Trustee or the Manager through a special resolution. c) The rights to exercise your cooling-off period if you invest for the first time with PMB Investment except for if you are either corporate/institutional clients, staff of the Manager or a person registered with a body approved by the SC to deal in unit trusts. d) The right to receive annual reports and interim reports of the Fund, which are sent out within two (2) months from the closing of each financial year and the interim period. Limitation of Rights a) Unit Holders are not entitled to request for the transfer of any assets in the Fund or be entitled to interfere with or question the exercise by the Trustee or by the Manager on the Trustee s behalf of the rights of the Trustee as the owner of such assets. b) Unit Holders are not entitled to attend any meeting of shareholders, stockholders or debenture holders or to vote or take part in or consent to any company or shareholders', stock holders' or debenture holders' action. Your Liabilities You would not be liable and shall not be under any obligation to indemnify the Trustee and/or the Manager in the event that the liabilities incurred by the Trustee and/or the Manager in the name of or on behalf of the Fund pursuant to and/or in the performance of the provisions of the Deed exceed the value of the assets of the Fund, and any right of indemnity of the Trustee and/or Manager will be limited to recourse to the Fund FEES AND CHARGES Enlisted below are the maximum fees and charges permitted by the Deed: Sales Charge 7.0% of the NAV per unit All Funds except PMB SDF 6.5% of the NAV per unit PMB SDF Repurchase Charge Nil All Funds Annual Management Fee Annual Trustee Fee 1.50% per annum of the NAV of the Fund All Funds except PMB SDF 1.8% per annum of the NAV of the Fund PMB SDF 0.50% per annum of the NAV of the Fund All Funds except PMB SDF 0.10% per annum of the NAV of the Fund subject to the minimum of RM18,000 p.a PMB SDF 148

157 MASTER PROSPECTUS 2016/2017 All current fees and charges are disclosed in sections 3.2 and 8 of this Master Prospectus. The disclosed current fees and charges in sections 3.2 and 8 of this Master Prospectus could be lower than that stated in the Deed. Any increase in the current sale and/or repurchase charges stated in the current Master Prospectus could only be made if: a) the Manager has notified the Trustee in writing of the higher charge and the effective date of the charge; b) a supplementary Master Prospectus stating the higher charge is issued; c) time as required by the law has elapsed since the issuance of the supplementary Master Prospectus; and d) the maximum fees or charges stated in the Deed shall not be breached. Any increase in the current annual management fee and/or annual trustee fee stated in the current Master Prospectus could only be made if: a) (for management fee) the Manager has notified the Trustee in writing of the new higher rate and the trustee agrees to it; b) (for Trustee fee) the Trustee has notified the Manager in writing of the new higher rate, and the Manager agrees to it; c) the Manager has notified unit holders of the higher rate and its effective date; d) a supplementary Master Prospectus stating the higher rate of fees has been registered and issued; e) time as required by the law has elapsed since the issuance of the supplementary Master Prospectus; and f) the maximum fees stated in the Deed shall not be breached. Any increase of the fees and / or charges above the maximum rate stated in the Deed shall require Unit Holders approval and can only be made by way of a supplemental deed and in accordance with the requirements of the CMSA. If any goods and services tax is imposed on or made payable by Unit Holders by virtue of any law, regulation, directive or order by any governmental authority, in connection with or in relation to any dealings in Units of the Fund(s) or any services provided by the Manager of the Trustee(s) in connection with or in relation to the Fund(s), Unit Holders shall pay such goods and services tax to the Manager and/or the Trustee(s) for onward payment to the relevant governmental authorities PERMITTED EXPENSES The Trustee shall at the request of the Manager pay out of the Cash Produce all costs, charges and expenses that are directly related and necessary to the business of the Fund. These would include: a) all fees authorised by the Deed to be paid out of the Fund to the Trustee and/or the Management Company as stipulated; b) all fees and disbursements of the Auditor; c) professional and accounting fees and disbursements approved by the Trustee, including that charged by any delegate of the Trustee in relation to the custody of any investments; d) the costs of printing and despatching to Unit Holders the accounts of the Trust, tax certificates, dividend warrants, notices of meeting of Unit Holders, newspaper advertisements and such other similar costs as may be approved by the Trustee; e) valuation fees of independent valuers payable in respect of the Fund; f) duties and taxes of the government payable in respect of the Fund; g) all expenses incurred by the Trustee in effecting registration, insurance or safe custody of the documents of title to all investments held upon the trust of this Deed, including that charged by any delegate of the Trustee in relation to the custody of any such investments; h) commission/fees paid to brokers in effecting dealings in the investments of the Fund, shown on the contract notes or confirmation notes or difference accounts; i) costs incurred for the modification of this Deed other than those for the benefit of the Manager; 149

158 2016/2017 MASTER PROSPECTUS Provided that expenses such as the general overhead expenses of the Manager and other expenses for such services rendered by the Manager which would be expected to fall within the normal expertise of the Manager should not be paid out of the Fund and provided further that promotional expenses and expenses incurred in the registering and issuing of prospectuses shall not be paid out of the Fund if service charges or upfront fees are levied on the Units sold. All expenses to be paid out of the Fund shall be authorised by the Deed and disclosed in the prospectus. Provided further that the quantum of the expenses chargeable to the Trust shall not be excessive or more than the standard commercial rates. In instances where uncertainty arises as to the status of the expenses the Trustee shall use its discretion in determining the legitimacy of the expenses. In respect of the Shariah-Compliant Funds, in addition to the costs, charges and expenses set out in the above items, the Trustee shall also pay out of the Cash Produce such sum (if applicable) as determined by the Manager, in consultation with the Shariah Adviser, as necessary pursuant to the purification process to ensure that the income shall be pure of profits or income derived from un- Islamic activities. Any sum paid out of the Cash Produce pursuant hereto shall be donated to charitable organisations approved by the Trustee, the Management Company and as agreed by the Shariah Adviser REMOVAL, REPLACEMENT AND RETIREMENT OF THE MANAGEMENT COMPANY AND TRUSTEE Subject to the provisions of the Deed and the relevant laws, the Manager may retire upon giving twelve (12) months' notice to the Trustee of its desire to do so or such a shorter period as the Trustee and the Manager may agree, and the Manager may by way of a deed appoint in its stead a new management company subject to the approval of the SC. Subject to the provisions of the Deed and the relevant laws, the Manager may be removed and another management company may be appointed by special resolution of the Unit Holders at a Unit Holders meeting convened in accordance with the relevant Deed. Subject to the provisions of the Deed and the relevant laws, the Trustee shall take reasonable steps to remove the Manager as soon as practicable after becoming aware of any such circumstances as stated in subsection 12.4(a) to (f) of this Master Prospectus under the sub-heading "Power of Trustee to Remove, Retire or Replace the Manager". Powers of the Management Company to Remove and Replace the Trustee As allowed under Section 299 of the Act we shall take all reasonable steps to replace the Trustee as soon as practicable after becoming aware that:- a) the Trustee has ceased to exist; b) the Trustee has not been validly appointed; c) the Trustee is not eligible to be appointed or to act as trustee under Section 290 of the Act; d) the Trustee has failed or refused to act as a Trustee in accordance with the provisions or covenants of the Deed or the provision of the Act; e) a receiver is appointed over the whole or a substantial part of the assets or undertaking of the existing Trustee and has not ceased to act under that appointment, or a petition is presented for the winding up of the existing Trustee (other than for the purpose of and followed by a reconstruction, unless during or following such reconstruction the existing trustee becomes or is declared to be insolvent); or f) the Trustee is under investigation for conduct that contravenes the Trust Companies Act 1949, the Trustee Act 1949, the Companies Act 1965 or any securities laws. 150

159 MASTER PROSPECTUS 2016/2017 Retirement, Removal or Replacement of the Trustee The Trustee may retire upon giving twelve (12) months' notice to the Manager of its desire to do so, or such shorter period as the Manager and the Trustee may agree, and may by deed appoint in its stead a new trustee approved by the relevant authorities and under any relevant law. The Trustee may be removed and another trustee may be appointed by Special Resolution of the Unit Holders at a Unit Holders meeting convened in accordance with the Deed or as stipulated in the Act. Power of Trustee to Remove, Retire or Replace the Manager Subject to the Deed and the relevant laws, the Trustee may take steps to remove the Manager in the event that: a) the Manager goes into liquidation (except for the purposes of amalgamation or reconstruction or some other purpose approved by the relevant authorities); or b) the Manager is in breach of its obligations under the Deed, the Act or the Securities Commission Malaysia s Guidelines on Unit Trust Funds; or c) the Manager has had a receiver appointed; or d) the Manager has ceased to carry on business; or e) a special resolution has been passed at the Unit Holders meeting to remove the Manager in accordance with the Deed; or f) the Manager has failed or neglected to carry out its duties to the satisfaction of the Trustee and the Trustee considers that it would be in the interests of Unit Holders for it to do so after the Trustee has given notice to the Manager of that opinion and the reasons for that opinion, and has considered any representations made by the Manager in respect of that opinion, and after consultation with the SC and with the approval of the Unit Holders by way of a special resolution TERMINATION OF THE FUND Upon the occurrence of any of the following events: a) if the Manager has gone into liquidation, except for the purpose of reconstruction or amalgamation upon terms previously approved in writing by the Trustee and the relevant authorities; or b) if, in the opinion of the Trustee, the Manager has ceased to carry on business; or c) if, in the opinion of the Trustee, the Manager has to the prejudice of Unit Holders failed to comply with the provisions of this Deed or contravened any of the provisions of any relevant law and at a Unit Holders' meeting summoned by the Trustee in accordance with the Deed, a special resolution is passed to terminate or wind up the Fund, the Trustee shall apply to Court to confirm such special resolution. Upon obtaining the relevant Court order, the Trustee shall take steps to terminate and winding up the Fund in accordance with the Court order, the Deed, the prevailing Acts and Guidelines UNIT HOLDERS MEETING Subject to the Deed and the prevailing Acts and Guidelines, a Unit Holders meeting could be summoned for any purpose with the salient details as follow:- a) The Manager and the Trustee may convene a Unit Holders meeting at any time, whilst, the Unit Holder could request for a meeting provided the written request comes from not less than 50 Unit Holders or 1/10 of Unit Holders; b) If the meeting is requested by the Manager, a notice of the meeting would be sent out not less than fourteen (14) days of any such meeting. Whereas, if a meeting is summoned by the Unit Holders, the Manager will send a notice by post at least seven (7) days before the meeting, and also publish a notice in the newspaper at least fourteen (14) days before the meeting; c) The Manager is entitled to receive notice of and to attend at any Unit Holders meeting but in respect of Units which the Manager hold or is deemed to hold, then the Manager is not entitled to vote at or be counted in the quorum for such meeting. And accordingly, for the purposes of the 151

160 2016/2017 MASTER PROSPECTUS following provisions of this Clause, Units held or deemed to be held by the Manager shall not be regarded as being an issue; d) The quorum required for a meeting of the Unit Holders shall be 5 Unit Holders, whether present in person or by proxy, provided always that the quorum for a meeting of the Unit Holders convened for the purpose of removing the Manager and/or the Trustee shall be ten (10) Unit Holders, whether present in person or by proxy, who must hold in aggregate at least fifty per centum (50%) of the Units in circulation at the time of the meeting; e) Save as otherwise provided specifically in this Deed or in the Guidelines and/or the Act, a resolution proposed at the meeting shall be considered as having been duly passed if carried by a majority consisting of more than half of the persons voting thereat upon a show of hands or if a poll is demanded, by a majority consisting of more than half in number of votes given on such poll. 152

161 MASTER PROSPECTUS 2016/ CONFLICT OF INTEREST The Manager and the Trustee and any delegate thereof will endeavor to avoid conflicts of interest arising or, if conflicts arise they will ensure that neither the Unit Holder nor the Fund is disadvantaged by the transaction concerned. Any transaction or investment carried out by or on behalf of the Fund should be executed at an arm s length transaction. The Manager and our related corporations will not act as principal in the sale and purchase of investments and the Fund will not invest in companies related to the Manager. Where a conflict of interest arises due to the Investment Committee member or director holding substantial shareholding or directorships of public companies, and the Fund invests in that particular share or stock, the said committee member or director shall abstain from any decision making relating to investment in that share or stock of the Fund. Our employees who are directly involved in the investment management of the Fund or who have direct and timely access to the daily trades done by the Fund Managers, are required to declare their dealing in the securities. To date, there has been no event of conflict of interest amongst us, employees, directors and Investment Committee members. In the event a conflict or potential conflict of interest involving the Manager and employees is identified, this will be evaluated by the Compliance Department and disclosed to the Chief Executive Officer (CEO) for the next course of action. Conflict of interest situations involving the CEO, directors and/or Investment Committee members will be disclosed to the Board of Directors for a decision on the next course of action. 153

162 2016/2017 MASTER PROSPECTUS 14. TAXATION OF THE FUNDS Our Ref : A31(T)/EMI Date : 28 March 2016 The Board of Directors Level 20, 1 Sentral Jalan Rakyat Kuala Lumpur Sentral Kuala Lumpur Dear Sirs, TAXATION OF THE UNIT TRUST FUNDS AND UNIT HOLDERS This letter has been prepared for inclusion in the Master Prospectus dated 28 April 2016 in connection with the offer of units in the following funds ( the Funds ): 1. PMB Dana Al-Aiman 2. PMB Dana Mutiara 3. PMB Dana Bestari 4. PMB Shariah Aggressive Fund 5. PMB Shariah Growth Fund 6. PMB Shariah Mid-Cap Fund 7. PMB Shariah Index Fund 8. PMB Shariah Premier Fund 9. PMB Shariah Dividend Fund 10. PMB Shariah TNB Employees Fund 11. PMB Shariah Tactical Fund 12. PMB Shariah Balanced Fund 13. PMB Shariah Cash Management Fund 1) TAXATION OF THE FUNDS The Funds are treated as a unit trust for Malaysian tax purposes. The taxation of the Funds is subject to the provisions of the Malaysian Income Tax Act 1967 ( the Act ). The applicable provisions are contained in Section 61 (trusts generally) and section 63B (special deduction of expenses) of the Income Tax Act 1967 ( the Act ). The Funds will be regarded as resident for Malaysian tax purposes since the Trustees of the Funds are resident in Malaysia under S 63(1) of the Act. 1.1) General Taxation The income of the Funds in respect of investment income derived from or accruing in Malaysia such as dividends, interest and profit (other than interest or profit which is exempt from tax) after deducting tax allowable expenses under S33(1) and S63B of the Act is liable to income tax. The income tax rate applicable to the Funds is 24% with effect from Year of Assessment ( YA ) 2016 (25% for Year of Assessment (YA) 2015). 154

163 MASTER PROSPECTUS 2016/2017 Gains on disposal of investments by the Funds will not be subject to Malaysian income tax. Such gains, however, may be subject to real property gains tax under the Real Property Gains Tax Act, 1976 (see Item E below) ) Exempt Income A) Malaysian Sourced Dividends With effective from 1 January 2008, Malaysia introduced the single tier system where dividends paid by companies would not be taxable in the hands of the recipient. Dividends received from companies that are under the single tier system would be exempted from tax and the expenses incurred on such dividends would be disregarded. There will no longer be any tax refunds for single tier dividends received. B) Malaysian Sourced Interest (i) (ii) (iii) (iv) (v) (vi) Interest from securities or bonds issued or guaranteed by the government of Malaysia; (subparagraph 35(a) of Schedule 6 of the ITA 1967) Interest from Debentures or Islamic securities, (other than convertible loan stock) approved by the Securities Commission (subparagraph 35(b) of Schedule 6 of the ITA 1967) or Labuan Offshore Financial Services Authority (LOFSA); Interest from Bon Simpanan Malaysia issued by Bank Negara Malaysia; (Subparagraph 35(d) of Schedule 6 of the ITA 1967) Interest derived from Malaysia and paid or credited by banks or financial institutions licensed under the Financial Services Act 2013 and Islamic Financial Services Act 2013; Interest or profit paid or credited by any development financial institution regulated under the Development Financial Institutions Act 2002; Interest derived from bonds (other than convertible loan stock paid or credited by any company listed on the Malaysian Exchange of Securities Dealing and Automated Quotation Berhad (MESDAQ); (vii) Interest received from bonds or securities issued by Pengurusan Danaharta Nasional Berhad; (Income Tax (Exemption)(No.5) Order 2001 [P.U.(A)220/2001] (viii) Interest from any savings certificates issued by the Government; (paragraph 19 of Schedule 6 of the ITA 1967) C) Discount (Tax exemption is given on discount paid or credited to any unit trust in respect of investments as specified in items B) (i) to (iii) above). Please note that the interest income or discount exempted from tax in items B) and C) at the Fund level will also be exempted from tax upon distribution to the Unit Holders. D) Foreign Sourced Income Income of the Funds in respect of income received from overseas investment is exempt from Malaysian Tax by virtue of paragraph 28 of Schedule 6 of the Act and distribution of such income will be tax exempt in the hands of the Unit holders. Such income from foreign investments may be subject to foreign taxes or withholding taxes. Any foreign tax suffered on the income in respect of overseas investment is not tax refundable to the Fund. The foreign income exempted from Malaysia tax at the Fund level will also be exempted from tax upon distribution to the Unit Holders. 155

164 2016/2017 MASTER PROSPECTUS E) Gains From The Realisation of Investments Pursuant to Section 61(1)(b) of the Malaysian Income Tax Act 1967, gains from the realization of investments will not be treated as income of the Funds and hence, are not subject to income tax. Such gains may be subject to real property gains tax under the Real Property Gains Tax Act 1976 ( RPGT Act ), if the gains are derived from the sale of chargeable assets, as defined in the RPGT Act. With effect from 1 January 2014, any gains from disposal of real properties ( chargeable asset ) or shares in real property companies chargeable asset would be subject to real property gains tax. According to Part II of Schedule 5 of the Real Property Gains Tax Act 1976 the RPGT rates as follows: RPGT RATES Time of Disposal Individuals Companies Non-citizens Within 3 years 30 % 30 % 30% In the 4 th year 20% 20% 30% In the 5 th year 15 % 15 % 30% In the 6 th year and subsequent years 0% 5% 5% F) Tax Deductible Expenses Tax deductible expenses are governed by Section 33(1) and Section 63B of the Malaysian Income Tax Act Section 33(1) generally provides for a deduction of expenses wholly and exclusively incurred in the production of gross income. Whilst, Section 63B allows the Funds deduction for a portion of other expenses(referred to as permitted expenses ) not directly related to the production of income. The special deduction is calculated based on the following formula: Where: A X B 4C A B C is the total of the permitted expenses incurred for that basis period. Permitted expenses means expenses incurred by the unit trust in respect of manager s remuneration, maintenance of register of unit holders, share registration expenses, secretarial, audit, accounting fees, telephone charges, printing and stationery cost and postage, which are not deductible under Section 33(1), is gross income consisting of dividend, interest and rent that are chargeable to tax for that basis period, and is the aggregate of the gross income consisting of dividend, interest (whether exempt or not), rent and gains made from the realization of investments (whether chargeable to tax or not) for that basis period, Provided that the amount of deduction to be made based on the above prescribed formula shall not be less than 10% of the total permitted expenses incurred for that basis period. G) Goods and Services Tax (GST) GST was implemented in Malaysia under the Goods and Service Tax Act 2014 effective from 1 April 2015 at a standard rate of 6%. It replaces the previous Sales Tax Act 1972 and Service Tax Act 1975 which were abolished on that date. Based on the Guide on Fund Management issued by the Royal Malaysian Customs Department on 27 October 2013, the investment activities of a unit trust fund including the buying and selling of securities are exempt 156

165 MASTER PROSPECTUS 2016/2017 supplies. Therefore, a unit trust fund makes wholly exempt supplies and is not required to be registered for GST purposes. There is no requirement for the Fund to make any application for exemption from registration. However, certain expenses incurred by the Fund such as fund manager s fee, trustee fees and professional fees will be subject to GST at the standard rate if the service providers are registered persons. If the Fund is making exempt supplies, any input tax incurred by the Fund for the aforementioned expenses are not claimable. 2) Taxation of Unit Trust Holders For Malaysian income tax purposes, unit holders will be taxed on their share of the distributions received from the Funds. The income of unit holders from their investment in the Funds broadly falls under the following categories : - 1. Taxable Distributions; and 2. Non-Taxable And Exempt Distributions. 3. Undistributed Income In addition, unit holders may also realize gain from the sale of units. The tax implications of each of the above categories are explained below: - 1. Taxable Distributions Unit holders will be taxed on an amount equivalent to their share of the total taxable income of the Funds to the extent of the distributions received from the Funds. The income distributions received from the Fundswill have to be grossed up to take into account the underlying tax paid by the Funds and the unit holders will be taxed on the grossed up amount. Such distributions carry a tax credit in respect of the tax paid by the Funds. Unit holders will be entitled to utilize the tax credit against any Malaysian income tax payable by the unit holder on the income distribution received by them, the excess is refundable to the unit holder. Please refer to the paragraph below for the income tax rates applicable to the grossed up distributions. 2. Non-Taxable And Exempt Distributions The distribution of single tier dividends, other than tax exempt income and gains from the realization of investments earned by the Fund will not be subject to Malaysian income tax in the hands of the Unit holders in Malaysia. Distribution of foreign income will also be exempted in the hands of the Unit holders. The following types of income is tax exempt in the hands of the unit holders : - a) certain interest income and foreign sourced income is tax exempt at the unit trust level. Unit holders who receive a distribution of such tax exempt income will not be subject to income tax. b) disposal of investments by the unit trust fund is not subject to tax. The distribution of gains from such disposals is tax exempt in the hands of the unit holders. c) any gains realized by unit holders (other than dealers in securities, insurance companies or financial institutions) on the sale, transfer or redemption of the units trust are treated as capital gains and will not be subject to income tax. d) bonus issues of units which either : - * represents a division of the unit holder s existing investment into a larger number of units, or * the distribution of unrealized gains as additional units. However, if the bonus issue of units represents distribution of income derived from investment of the unit trust, these units will be subject to tax. 157

166 2016/2017 MASTER PROSPECTUS e) Unit holders electing to receive their income distribution by way of investment in the form of the purchase of new units will be regarded as having purchased the new units out of their income distribution after tax. Unit splits issued by the Funds are not taxable in the hands of Unit holders. 3. Undistributed Income Unit holders are not taxed on the undistributed income or gains of the Fund. Filing of Income Tax Return Forms Unit holders have to declare their taxable distributions from unit trusts together with their income from other sources in the relevant Income Tax Return Forms. Rates of Tax The Malaysian income tax chargeable on the unit holders would depend on their tax residence status and whether they are individuals, corporations, non-corporations or trust bodies. The relevant income tax rates as follows: - TYPES OF UNIT HOLDERS MALAYSIAN INCOME TAX RATES RESIDENT OR NON RESIDENT Non-resident individual & non-corporate Unit holders (such as co-operatives, associations and societies) Resident individuals and others (such as associations and societies) 28% (effective from Year of Assessment 2016) scale rate (From 0% to 28% with effect from Year of Assessment 2016) Cooperative societies scale rate (From 0% to 24% with effect from Year of Assessment 2016) Companies (non SMI companies) and nonresident companies SMI Companies and Limited Liability Partnership (LLP) 25% (prevailing rate) - Appendix 1 (will be reduced to 24% effective from Year of Assessment 2016) On first RM 500,000 chargeable income at flat rate of 19% On subsequent amount of the chargeable income at flat rate of 24% (With effective from Year of Assessment 2016) (Remarks : Non-resident unit holders may be subject to tax in their respective countries depending on the provisions of the tax legislation in the respective countries and any existing double taxation arrangements with Malaysia) 158

167 MASTER PROSPECTUS 2016/2017 We hereby confirm that, as at the date of this letter, the statements made in this report correctly reflect our understanding of the tax position under current Malaysian tax legislation. All prospective investors should not treat the contents of this letter as advice relating to taxation matters and are recommended to obtain independent advice on the tax issues associated with their investments in the Funds. Yours faithfully, AHMAD ABDULLAH & GOH GOH KENG JUAY Partner 159

168 2016/2017 MASTER PROSPECTUS Appendix 1 SMI company means a company incorporated in Malaysia and has paid up capital in respect of ordinary shares of RM 2.5 million and below at the beginning of basis period for a Year of Assessment (YA), resident in Malaysia and not within a group where the holding or other subsidiary company is: a) more than 50% of the paid up capital in respect of an ordinary shares of the company is directly or indirectly owned by a related company; b) more than 50% of the paid up capital in respect of ordinary shares of the related company is directly or indirectly owned by the first mentioned company; or c) more than 50% of the paid up capital in respect of ordinary shares of the first mentioned company and the related company is directly or indirectly owned by other company. Related company is defined as a company which has a paid up capital exceeding RM2.5 million in respect of ordinary shares at the beginning of the basis period of the year of assessment. 160

169 MASTER PROSPECTUS 2016/ ADDITIONAL INFORMATION 15.1 UPDATES ON THE FUNDS You may access the daily Fund prices, Fund s monthly updates and review our interim and annual reports via our website PRE-INVESTMENT FORM (PIF) The purpose of the PIF is to ensure that the investor are sufficiently informed on investments in unit trust funds and in particular, understand the unit trust fund in which you invest in. You are required to complete the PIF prior to account opening if you are a first time investor. If you invest in several new Funds simultaneously, a PIF must be completed for each Fund SUITABILITY ASSESSMENT The Suitability Assessment should be conducted on an investor who wishes to invest in a new unlisted capital market product. The Suitability Assessment Form should be completed prior to the account opening. A suitability assessment refers to an exercise carried out by the Manager to gather necessary information from the investor before matching a particular Fund with the needs of an investor INVESTOR RELATION You may communicate with us by:- i) Telephone: (03) (Investor Relation Careline) / (03) (General Line) ii) Fax: (03) iii) iv) investorrelation@pelaburanmara.com.my Walk-in: Mondays - Thursdays Fridays Saturdays-Sundays/Public Holidays 8.45 a.m p.m a.m p.m p.m p.m. Closed v) Write in Level 20, 1 Sentral Jalan Rakyat, Kuala Lumpur Sentral Kuala Lumpur 15.5 COMPLAINTS Should you wish to complain, you may lodge your complaint by writing to: Investor Relation Unit Level 20, 1 Sentral Jalan Rakyat, Kuala Lumpur Sentral Kuala Lumpur Please state the date, time, place of occurrence, person involved and nature of your complaint. You may also lodge your complaint through telephone calls by contacting the department. 161

170 2016/2017 MASTER PROSPECTUS 15.6 SECURITIES INDUSTRY DISPUTE RESOLUTION CENTER (SIDREC) SIDREC is an independent body corporate, approved under Capital Markets and Services (Dispute Resolution) Regulations 2010, established to resolve monetary disputes between investors and capital market intermediaries registered as its members, such as stockbrokers, futures brokers, unit trust management companies, and fund managers. If an investor has an unresolved claim with a capital market intermediary, he or she may file a claim with SIDREC, either a) In person Mondays - Thursdays Fridays Saturdays-Sundays/Public Holidays 9.00 a.m p.m p.m p.m a.m p.m p.m p.m. Closed b) Write in Securities Industry Dispute Resolution Center, Unit A-9-1, Level 9, Tower A, Menara UOA Bangsar, No. 5, Jalan Bangsar Utama 1, Kuala Lumpur c) Fax: (03) d) info@sidrec.com.my For further enquiry, you may reach SIDREC via, telephone at (03) or its website at ANTI-MONEY LAUNDERING AND ANTI-TERRORISM FINANCING (AML/CFT) POLICIES General Policy We have established an Anti-Money Laundering and Anti-Terrorism Financing (AMLCFT) Policies and Procedures as required by the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act (AMLATFA) As such we will actively prevent and take measures to guard against being used as a medium for money laundering and/or terrorism financing activities and any other activity that facilitates money laundering and/or terrorism financing. Investor s Identification and Verification Pursuant to the AMLATFA, we have put in place procedures for identification and verification of investors. Hence, we require you to provide us with your name, date of birth, national registration card number, residential and business address, (and mailing address if different), name of beneficial owner, address of beneficial owner, national registration card number of beneficial owner, date of birth of beneficial owner or other official identification when you open or re-open an account. Additional information from you may be required on a case by case basis in certain situations throughout your investment with us in any of the Fund. Application without such information may not be accepted and the application amount shall be returned to you. Suspicious Transaction Reporting We are obliged to report to the Financial Intelligence and Enforcement Department of Bank Negara Malaysia on any transaction which may raise our suspicion that the source of the investment capital is originated or received from money laundering and terrorism activities, or proceeds from illegal activities. 162

171 MASTER PROSPECTUS 2016/ PRIVACY NOTICE UNDER PERSONAL DATA PROTECTION ACT 2010 Pursuant to the PDPA gazetted on 15 th November 2013, we have put in place procedures in dealing with your personal data being collected and retained by us. Please read our Privacy Notice on our website pmbinvestment.com.my or request a copy of the Privacy Notice from our office GOODS AND SERVICES TAX (GST) With effect from 1 April 2015, GST has been implemented to replace the current sales tax and service tax regime currently at the rate of 6%. Based on the Guide on Fund Management issued by Royal Malaysian Customs Department on 27th October 2013 ( Guide on Fund Management ), a unit trust fund is making exempt supplies. Any contribution made to the Fund by its Unit Holders for the issuance of units in the Fund should be regarded as an exempt supply of services and thus, should not be subject to GST. The investment made by the Fund to maximize its returns is generally proposed to be treated as exempt supply and not subject to GST. Any investment activity such as buying or selling of securities should generally be exempted from GST. However any fee-based charges by the Fund should be a taxable supply subject to GST at the standard rate of 6%, provided the Fund exceeds the GST registration threshold of RM500,000 per annum of taxable supplies. Any GST incurred by the Fund on the manager s fees, trustee fees and other supplies received by the Fund are not claimable as input tax credit for GST purposes if the Fund is not GST registered or even if GST registered, to the extent the supplies by the Fund are exempted from GST. Manager s GST Registration No.: FOREIGN ACCOUNT TAX COMPLIANCE ACT (FATCA) FATCA is a United States of America (US) statute that, among others, requires foreign financial institutions, including us, to report to the Inland Revenue Service (IRS) of the US on clients who are US persons. US persons refers to a citizen of US; an individual lawfully admitted for permanent residence of the US; an unincorporated association with a substantial number of members who are citizens of the US or are individuals lawfully admitted for permanent residence of the US; or a corporation incorporated in the US ZAKAT The Funds do not allocate payment for zakat on capital gains and income distributions, on behalf of Muslim individuals and Muslim legal entities that invest in the Funds since by doing so, would not fulfill their zakat obligations. Thus, Unit Holders are required and advised to make their own arrangements in respect of the payments of zakat. Muslim individuals and legal entities that are investors of the Funds are required to pay zakat on trading and investment income. To determine the amount of zakat payable, these investors need to add the principal invested in the Fund(s) plus the profits earned on these investments multiplied by 2.5% AUDITORS OF THE FUND Messrs. Ahmad Abdullah & Goh has been appointed as the auditors for the Funds. The Auditors may retire upon giving three (3) month s written notice to the Trustee provided any such notice must always expire one (1) month prior to or two (2) months following the end of the current accrual period, or may be removed at any time by the Trustee or by a resolution of Unit Holders holding not less than 2/3 of the units in issue. Any vacancy in the office of the Auditors shall be filled by a qualified person appointed by the Trustee. 163

172 2016/2017 MASTER PROSPECTUS PLEDGING OF UNITS AS COLLATERAL Units held by the Unit Holder may be pledged as collateral for loans to enhance your financial leverage. However, this facility is only available subject to the approval of the banks or other financial institutions BORROWING TO PURCHASE UNITS Unit Holder has the option to purchase the Units through a loan scheme. However, if such facility is utilised the margin of finance shall not exceed 67% of the amount invested (this limit is not applicable for purchase of Units via credit/charge card). Any redemption of Units is subject to the related financial institution s approval. Investors are required to understand fully the risk disclosure statement on the loan scheme before signing off on the statement provided. The risk disclosure statement is incorporated in the application forms referred to and accompanied in the Master Prospectus PERIOD OF THE FUND The commencement dates of the Funds are the dates of launching or the dates of the first Prospectus issued by the Manager. The Fund may be terminated by the Trustee who will summon a meeting of Unit Holders due to circumstances affecting the Manager. Otherwise the Fund may continue in operation or in existence if it appears to be in the interest of the Unit Holders for such periods as agreed by the Trustee and the Manager LIST OF DISTRIBUTION CHANNELS Other than the Head Office in Kuala Lumpur, Unit Holder may obtain the Master Prospectus and forms and purchase the units of our Funds at our regional offices as follows: Regional Offices Central Region Wisma PMB, No. 1A, Jalan Lumut, Kuala Lumpur Tel: (03) Fax: (03) pmbi.central@pelaburanmara.com.my Manager: Suhaila binti Malzuki Northern Region No. 46, 1/F Jalan Todak 2, Pusat Bandar Seberang Jaya, Perai, Pulau Pinang Tel: (04) Fax: (04) pmbi.north@pelaburanmara.com.my Manager: Ahmad Shahril bin Md Yusof Eastern Region Lot D103, Tingkat 1, Mahkota Square, Jalan Mahkota, Kuantan, Pahang Darul Makmur Tel: (09) Fax: (09) pmbi.east@pelaburanmara.com.my Manager: Mohd Nazri bin Kadir Southern Region No.17-01, Jalan Molek 1/29, Taman Molek, Johor Bahru, Johor Darul Takzim Tel: (07) Fax: (07) pmbi.south@pelaburanmara.com.my Manager: Anuar bin Idrus 164

173 MASTER PROSPECTUS 2016/2017 Sarawak No. 59, Tingkat 1, Jalan Tun Jugah, Kuching, Sarawak Tel: (082) Fax: (082) Manager: John Nyaliaw Sabah Lot C, Tingkat 2 Plaza Wawasan, Lorong Wawasan, Kota Kinabalu, Sabah Tel: (088) Fax: (088) pmbi.sabah@pelaburanmara.com.my Manager: Yong Yin Kong Institutional Unit Trust Agents Phillip Mutual Berhad B-2-7 Megan Avenue II, 12 Jalan Yap Kwan Seng, Kuala Lumpur Tel: (03) Fax: (03) Website: ifast Capital Sdn Bhd Level 28 Menara Standard Chartered, No 30 Jalan Sultan Ismail, Kuala Lumpur Tel: (03) Fax: (03) Website: Apex Investment Services Berhad Suite 10-A3, 10A Floor, Grand Season Avenue, 72 Jalan Pahang, Kuala Lumpur Tel : (03) Fax : (03) Website: Financial Institutions for Autodebit a. Bank Simpanan Nasional b. CIMB Bank Berhad c. Malayan Banking Berhad/Maybank Islamic Berhad d. RHB Bank Berhad/RHB Islamic Bank Berhad 165

174 2016/2017 MASTER PROSPECTUS 16. STATEMENT OF CONSENT The auditors, bankers, company secretary, solicitors, tax adviser, Trustees, Shariah adviser for the Manager and Shariah Adviser for the Funds have given their consent in writing before the issuance of this Master Prospectus to act in that capacity in relation to this Master Prospectus and those consents have been lodged with the Securities Commission Malaysia and have not subsequently been withdrawn. 166

175 MASTER PROSPECTUS 2016/ DOCUMENTS AVAILABLE FOR INSPECTION For a period of not less than twelve (12) months from the date of this Master Prospectus, Unit Holders may inspect the following documents or copies thereof during normal business hours at the Manager s and Trustee s business office, without charge:- a) The Deed of each Funds; b) Each material contract or document referred to in this Master Prospectus; c) The latest annual and interim reports of the Fund; d) All reports, letters or other documents, valuations and statements by any expert, any part of which is extracted or referred to in this Master Prospectus; e) Latest audited financial statements of the management company and that of the Funds for the current financial year (where applicable); f) Audited financial statements of the management company and that of the Funds for the last 3 financial years preceding the date of the Master Prospectus; g) Any consent given by experts or persons named in this Master Prospectus; and h) Writ and relevant cause papers for all current material litigation and arbitration disclosed in the Master Prospectus. 167

176 2016/2017 MASTER PROSPECTUS APPENDICES 168

177

178

179