On behalf of the Amanah Mutual Berhad ( the Manager ), we wish to inform that this Master Prospectus is in respect of the following three (3) Funds:

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2 Preface The Unit Holders of AMB Family of Shariah-compliant Funds Dear Sir/Madam, On behalf of the Amanah Mutual Berhad ( the Manager ), we wish to inform that this Master Prospectus is in respect of the following three (3) Funds: (i) (ii) (iii) AMB Dana Yakin AMB Dana Ikhlas AMB Dana Arif Unit Holders of the Funds may refer to Chapter 1 : Summary of Key Features of the Funds for a better understanding of the respective Fund s investment objectives, key strategies, asset allocation and profile of investors. You should also be aware of the inherent risks of investing in the AMB Family of Shariah-compliant Funds as detailed out in Chapter 2 of the Prospectus. There are fees and charges that will be directly and indirectly incurred by investors when Units of the respective Fund is purchased or redeemed. Further details of these fees and charges are disclosed in Chapter 7 of the Prospectus. All Units of the Fund can be purchased or redeemed at any Maybank Distribution Branches, being AMB s sales distribution channel. A list of Maybank Distribution Branches is found in Chapter 22 of this Prospectus. We recommend potential investors to read and understand the contents of this Prospectus in its entirety before making any investment decision. As always, thanking you for allowing us to be of service to you. Yours faithfully, Amanah Mutual Berhad Aldilla@Zilfalila binti Abdul Halim Chief Executive Officer (i)

3 Responsibility Statement This Prospectus has been reviewed and approved by the Directors of Amanah Mutual Berhad, and they collectively and individually accept full responsibility for the accuracy of the information. Having made all reasonable enquiries, 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 herein false or misleading. Statement of Disclaimer The Securities Commission has approved the issue of, offer for subscription or purchase, or issue an invitation to subscribe for or purchase units of the Fund and a copy of this Prospectus has been registered with the Securities Commission. The approval, and registration of this Prospectus, should not be taken to indicate that the Securities Commission recommends the Fund or assumes responsibility for the correctness of any statement made or opinion or report expressed in this Prospectus. The Securities Commission is not liable for any non-disclosure on the part of the management company responsible for the Fund and takes no responsibility for the contents of this Prospectus. The Securities Commission makes no representation on the accuracy or completeness of this Prospectus, and expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of the contents of this Prospectus. INVESTORS SHOULD RELY ON THEIR OWN EVALUATION TO ASSESS THE MERITS AND RISKS OF THE INVESTMENT. IN CONSIDERING THE INVESTMENT, INVESTORS WHO ARE IN DOUBT ON THE ACTION TO BE TAKEN SHOULD CONSULT THEIR PROFESSIONAL ADVISORS IMMEDIATELY. Additional Statement No Units will be issued or sold based on this Prospectus later than one (1) year after the date of this Prospectus. Investors are advised to note that recourse for false or misleading statements or acts made in connection with the Prospectus is directly available through Sections 248, 249 and 357 of the Capital Markets and Services Act AMBDY, AMBDI and AMBDA have been certified as being Shariah-compliant by the Shariah adviser appointed for the Funds. (ii)

4 Contents Glossary of Terms/Abbreviation... 3 Corporate Information Summary of Key Features of the Funds Fund Information Fees and Charges Information on Transactions Special Benefits Other Information Risk Factor Risks of Investing in Unit Trust Control Of Risk Detailed Information on the Funds AMB Dana Yakin.. 15 AMB Dana Ikhlas.. 19 AMB Dana Arif Permitted Investment of the Funds Investment in Warrants and Options Investment Restrictions Exception and Exclusion Applicable to the Funds Investment Process of the Funds Investment Philosophy of the Funds Investment Process of the Funds Bases of Valuation of Investments Policy on Gearing and Liquid Assets Performance of the Fund AMB Dana Yakin.. 32 AMB Dana Ikhlas.. 33 AMB Dana Arif Historical Financial Highlights of the Fund AMB Dana Yakin AMB Dana Ikhlas AMB Dana Arif Total Annual Expenses incurred by the Funds in the last Financial Year Understanding Fees and Expenses Sales Charge Redemption Fee Management Fee Trustee Fee Fund s Expenses Transfer of Units Switching Management Expense Ratio (MER) Portfolio Turnover Ratio (PTR) Policy on Brokerage Rebates and Soft Commissions Purchasing and Redeeming of Units Single Pricing Policy Valuation of Units Error in Pricing Purchasing and Redeeming of Units Determination of Prices and Charges Minimum Balance of Investment Cooling-Off Right How to Purchase and Redeem Units of the Fund Where to Purchase and Redeem Invest your EPF Savings. 45 AMB Client Services :

5 8.11 Transfer of Units The Flexibility to Switch your Investment Understanding Income Distributions and Reinvestment Plan Distribution Policy What Comprises Income Distribution? How is Income Distributions Calculated? Auto-Reinvestment of distribution for the Funds Policy on Unclaimed Monies Communication with Unit Holders Customer Information Service Regular Reports on your Investment Register of Unit Holders Policies Adopted by AMB to Avoid Money Laundering Activities Material Contracts Rights and Liabilities of a Unit Holder Rights of a Unit Holder Liabilities of a Unit Holder The Management and Administration of the Funds Corporate Profile of the Manager Past Performance of the Manager Profile of the Board of Directors of the Manager Company Secretary Senior Compliance Officer Profile of the Key Management Staff of the Manager The Investment Committee of the AMB Family of Funds The Shariah Committee Roles and Responsibilities of the Shariah Committee Members Shariah Committee Members Profile of the External Investment Manager Duties of The External Investment Manager Designated Investment Managers of the Funds Conflict of Interest Material Litigation and Arbitration The Trustee of the Funds Profile of AmanahRaya Trustees Berhad (ART) Trustee s Delegate for AMBDA Trustee s Responsibility Statement Material Litigation and Arbitration Duties and Obligations of Trustee Retirement or Removal or Replacement of the Trustee Power of the Trustee to Remove or Replace the Manager Salient Terms of Deed Variations Granted by the SC Related Party Transactions/Conflict of Interest Tax Advisor s Letter Consents Documents Available for Inspection Directors Declaration List of Offices Maybank Distribution Branch. 82 AMB Client Services :

6 Glossary of Terms / Abbreviations The following words or abbreviations shall have the following meanings in the current Prospectus unless otherwise stated: "Act" AMB or Manager AMB Family of Funds ASNB AMBDY AMBDI AMBDA Bursa Malaysia" Business Day(s) Cooling-off Period Cooling-off Right Deeds Distribution Branch EPF External Investment Manager FMUTM FBM Shariah Index Forward Pricing Fund Funds Guidelines The Capital Markets and Services Act 2007, including all amendments thereto and all regulations, rules and guidelines issued in connection therewith. Amanah Mutual Berhad (AMB) ( U) All Funds under the management of the Manager. Amanah Saham Nasional Berhad (47457-V), the holding company of the Manager. AMB Dana Yakin AMB Dana Ikhlas AMB Dana Arif Bursa Malaysia Securities Berhad (30632-P). A day on which Bursa Malaysia Securities Berhad is open for trading in Securities. The cooling-off period of the Funds is six (6) Business Days, commencing from the date of purchase i.e. the date on which the Manager receives the application form and the investment amount. The right of a qualified Unit Holder to change his mind and cancel an investment in the Funds within the Cooling-off Period commencing from the date of purchase, without having to incur any sales charge. The Deeds including any supplementary Deeds between the Manager, the Trustee and the Unit Holders of the Funds. Any branch, outlet or any other premises of the IUTA used as distribution channels for the purpose of marketing and distribution of unit trust. Employee Provident Fund. Mayban Investment Management Sdn Bhd ( M) (MIM) for AMBDY, AMBDI and AMBDA. Federation of Malaysian Unit Trust Managers. FTSE Bursa Malaysia Shariah Index The NAV per Unit of the Fund used for the purpose of calculating a price is the NAV per Unit as at the next valuation point after an application or a request is received. Any of the Funds. AMBDY, AMBDI and AMBDA The Guidelines on Unit Trust Funds and any other relevant guidelines on Unit Trust Funds issued by the SC as amended, modified or varied by any notes, circular and guidelines issued from time to time by the SC. AMB Client Services :

7 Investment Committee Investment Management Agreement. IUTA or Distributor KLCI KLIBOR LPD The Investment Committee of the Manager primarily responsible for formulating, implementing and monitoring the investment management strategies of the Funds in accordance with the respective investment objectives of the Funds. The agreement setting out the terms and conditions upon which the External Investment Manager has been appointed. Maybank and any other Institutional Unit Trust Agent, which is an institution, a corporation or an organisation that is registered with FMUTM in accordance with their guidelines. Kuala Lumpur Composite Index Kuala Lumpur Inter-Bank Offered Rates August 18, 2008, being the latest practicable date for the purposes of ascertaining the information contained in this Prospectus. Management Expense Ratio or MER The ratio of the sum of the fees and the recovered expenses of the Fund to the average value of the Fund calculated on a daily basis, i.e.: Fees of the Fund recovered expenses of the Fund Average value of the Fund calculated on a daily basis x 100 Where: Fees = All ongoing fees deducted/deductible directly from the Fund in respect of the period covered by the management expense ratio expressed as a fixed amount calculated on a daily basis. This would include the annual management fee, the annual Trustee fee and any other fees deducted / deductible directly from the Fund; Recovered expenses = All expenses recovered from / charged to the Fund as a result of the expenses incurred by the operation of the Fund, expressed as a fixed amount. This should not include expenses that would otherwise be incurred by an individual investor (e.g. brokerage, taxes and levies); and Average value of the Fund = The NAV of the Fund, including net value income less expenses on an accrued basis, in respect of the period covered by the management expense ratio, calculated on a daily basis MARC Maybank MESDAQ Net Asset Value / NAV of the Fund Malaysian Rating Corporation Berhad (364803V) Malayan Banking Berhad (3813-K) Malaysian Exchange for Securities Dealings and Automated Quotation The NAV of the Fund 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. For the purpose of computing the annual management fee and annual Trustee fee, the NAV of the Fund should be inclusive of the management fee and Trustee fee for the relevant day. AMB Client Services :

8 Net Asset Value / NAV per Unit PNB Portfolio Turnover Ratio or PTR The NAV of the Fund divided by the number of Units in Circulation, at the valuation point. Permodalan Nasional Berhad (38218-X), the ultimate company of the Manager. The ratio of the average sum of the acquisitions and disposals of the Fund for the year to the average value of the Fund for the year calculated on a daily basis, i.e.: [Total acquisitions of the fund for the Total disposals of the fund for the year year] / 2 Average value of the fund for the year calculated on a daily basis Purchasing of Units Redeeming of Units RAM RM SC Shariah Committee Members Shariah Principles Trustee Unit Holder "Units" Units in Circulation The buying Units by Unit Holders in a Fund is calculated at NAV per Unit. The redeeming Units by Unit Holders in a Fund is calculated at NAV per Unit. RAM Holdings Berhad ( U) Ringgit Malaysia Securities Commission The Committee appointed by the Manager to the Funds. Shariah principles are based on Islamic law, originating from the Quran as well as practices and explanations rendered by the Prophet Muhammad (PBUH) Ijma', Qiyas and ijtihad of ulamak (personal reasoning of Islamic jurists). AmanahRaya Trustees Berhad (ART) ( T) as trustee for AMBDY, AMBDI and AMBDA. A person or persons registered as holder of a Unit or Units of the Fund and whose name appears in the Register of Unit Holders. Units of any Fund. A Unit of the Fund created and fully paid. Definitions or meanings of word or words not otherwise expressed above shall follow the meaning or interpretation as ascribed in the Guidelines issued by the SC and any other relevant laws governing unit trust funds. AMB Client Services :

9 Corporate Information MANAGER Amanah Mutual Berhad ( U) Registered Office 4 th Floor, Balai PNB 201-A, Jalan Tun Razak Kuala Lumpur Telephone : Facsimile : Principal Office 34 th Floor, Menara PNB 201-A, Jalan Tun Razak Kuala Lumpur Telephone : Facsimile : ambcare@pnb.com.my Website : http // AMB Client Services : BOARD OF DIRECTORS Tun Dato Seri Ahmad Sarji bin Abdul Hamid Chairman (Non-Executive/Non-Independent Director) Tan Sri Dato Hamad Kama Piah bin Che Othman (Non-Executive/Non-Independent Director) Tan Sri Dato' Dr. Wan Mohd. Zahid bin Mohd. Noordin (Non-Executive/Independent Director) Tan Sri Dato' Md Desa bin Pachi (Non-Executive/Independent Director) Encik Idris bin Kechot (Non-Executive/Non-Independent Director) INVESTMENT COMMITTEE MEMBERS Tun Dato Seri Ahmad Sarji bin Abdul Hamid Chairman (Non-Independent member) Tan Sri Dato' Hamad Kama Piah bin Che Othman (Non-Independent member) SHARIAH COMMITTEE MEMBERS Dato' Dr. Abdul Halim bin Ismail (Chairman) Datuk Dr. Syed Othman bin Syed Hussin Al Habshi Prof. Dato' Dr. Abdul Monir bin Yaacob Prof. Dato' Dr. Mahmood Zuhdi bin Hj Ab Majid AUDIT COMMITTEE OF PNB Tan Sri Dato' Dr. Wan Mohd. Zahid bin Mohd. Noordin (Independent member) Tan Sri Dato' Md Desa bin Pachi (Independent member) Datuk Burhanuddin Bin Ahmad Tajuddin (Independent member) COMPLIANCE COMMITTEE OF PNB Tan Sri Dato' Hamad Kama Piah bin Che Othman (Non-Independent member) Tan Sri Dato' Dr. Wan Mohd. Zahid bin Mohd. Noordin (Independent member) Datuk Burhanuddin Bin Ahmad Tajuddin (Independent member) Encik Paisol bin Ahmad (Independent member) COMPANY SECRETARY Puan Adibah Khairiah binti Daud (MIA 13755) 4th Floor, Balai PNB 201-A, Jalan Tun Razak Kuala Lumpur Tan Sri Dato' Dr. Wan Mohd. Zahid bin Mohd. Noordin (Independent member) Tan Sri Dato' Md Desa bin Pachi (Independent member) AMB Client Services :

10 EXTERNAL INVESTMENT MANAGER Mayban Investment Management Sdn Bhd ( M) Level 13, MaybanLife Tower Dataran Maybank No.1, Jalan Maarof Kuala Lumpur Telephone : Facsimile : TRUSTEE Registered and Business Office: AmanahRaya Trustees Berhad ( T) Tingkat 4, Wisma TAS No. 21, Jalan Melaka Kuala Lumpur Telephone : Facsimile : Website: AmanahRaya Trustee s Delegate (for AMBDA) Malayan Banking Berhad (Custody & Services Department) 3 rd Floor, Menara Maybank 100 Jalan Tun Perak Kuala Lumpur Telephone : Facsimile : / AmanahRaya Trustee s Banker (for AMBDY, AMBDI and AMBDA) Malayan Banking Berhad Kuala Lumpur Main Office 100, Jalan Tun Perak Kuala Lumpur AUDITOR Messrs. Ernst & Young Chartered Accountants Level 23A, Menara Milenium Jalan Damanlela Pusat Bandar Damansara Kuala Lumpur TAX ADVISORS Ernst & Young Tax Consultants Sdn Bhd (for AMBDA and AMBDI) Level 23A, Menara Milenium Jalan Damanlela Pusat Bandar Damansara Kuala Lumpur PricewaterhouseCoopers Taxation Services Sdn Bhd (for AMBDY) 11 th Floor, Wisma Sime Darby Jalan Raja Laut Kuala Lumpur PRINCIPAL BANKER Malayan Banking Berhad (3813-K) Kuala Lumpur Main Office 100, Jalan Tun Perak Kuala Lumpur SOLICITORS Messrs. Othman Hashim & Co (for AMBDY and AMBDA) Suite 18.04, 18th Floor Menara MAA No. 12, Jalan Dewan Bahasa Kuala Lumpur Messrs. Zainal Abidin & Co. (for all Funds) Suite , 18th Floor Plaza Permata, Jalan Kampar Off Jalan Tun Razak Kuala Lumpur. FEDERATION of MALAYSIAN UNIT TRUST MANAGERS , 7th Floor, PNB Damansara, 19, Lorong Dungun, Damansara Heights, Kuala Lumpur. Telephone: Facsimile : Address: info@fmutm.com.my AMB Client Services :

11 1 Summary of Key Features of the Funds 1.1 Fund Information This section is only a summary of the salient information about the Fund. Investors should read understand the whole Prospectus before making investment decisions. Fund AMBDY AMBDI AMBDA Trustee AmanahRaya Trustees Berhad ( T) AmanahRaya Trustees Berhad ( T) AmanahRaya Trustees Berhad ( T) External Investment Manager Mayban Investment Management Sdn Bhd ( M) Mayban Investment Management Sdn Bhd ( M) Mayban Investment Management Sdn Bhd ( M) Launch Date Financial Year End Unit in Circulation as at LPD November 24, April 124,487,100 September 17, November 48,823,300 April 27, May 120,031,200 FEATURES AMBDY AMBDI Category of Fund Equity Fund Balanced Fund Type of Fund Growth Fund Income and Growth Fund Objective of the Fund Investment Strategy Asset Allocation To achieve a steady capital growth over the medium to long term period (two years to five years) through investments permissible under the Shariah Principles. (Refer to page 15 for details of investment objective of the Fund) The Fund investment strategy is to enhance the value of the Fund through diversification of stocks that complies with Shariah Principles within the permitted investment parameters. (Refer to page 17 for details of investment strategy of the Fund) Min 40% to max 90% in equities Min 10% in liquid assets (Refer to page 18 for details of asset allocation of the Fund) To attain a mix of regular income stream and possible capital growth via investments in listed equities, debt instruments and other assets that are permissible under the Shariah Principles. (Refer to page 19 for details of investment objective of the Fund) AMBDI invests in a wide range of assets that conforms to Shariah Principles. (Refer to page 21 for details of investment strategy of the Fund) Min 20% to max 70% in equities Min 20% to max 70% in debt instrument Min 10% in cash (Refer to page 22 for details of asset allocation of the Fund) Benchmark FBM Emas Shariah Index. 65% - FBM Emas Shariah Index 35% - 12-month Mudharabah deposits. Principal risks of investing in the Fund The principal risks of investing in the Fund are as follows: - Stock/bond market risk Individual stock risk Interest rate risk Liquidity risk Currency risk (Refer to page 16 for details of potential risk associated with the Fund) The principal risks of investing in the Fund are as follows: - Stock/bond market risk Individual stock risk Credit / default risk Interest rate risk Liquidity risk Currency risk (Refer to page 20 for details of potential risk associated with the Fund) AMB Client Services :

12 FEATURES AMBDY AMBDI Investor Profile Distribution Policy The Fund is suitable for an investor who: Is looking for investments in a diversified portfolio of assets that conform to the Shariah Principles. Has a medium to long-term investment horizon of two (2) years and above. Income (if any) is expected to be distributed annually at the Manager s discretion. Approved Fund Size 1.2 billion Units 400 million Units The Fund is suitable for all investors who are seeking a fully managed and balanced portfolio of investments that conforms to the Shariah Principles and has an investment horizon of five (5) years or more. Income (if any) is expected to be distributed annually at the Manager s discretion. FEATURES Category of Fund Type of Fund Objective of the Fund Investment Strategy Asset Allocation Benchmark Principal risks of investing in the Fund Bond Fund Income Fund AMBDA To provide a steady appreciation of the net asset value of the Fund with a regular flow of income to our investors through investments in debt securities that are permissible under Shariah Principles. (Refer to page 23 for details of investment objective of the Fund) The External Investment Manager will invest in a diversified portfolio of Islamic debt securities in order to maximise return within acceptable risk parameters. Diversification is to be done across sectors and issuers (to reduce sector and credit risk), and across durations (to reduce price risk). Depending on market conditions, the External Investment Manager will invest in Islamic debt securities that best meet the Fund objective. As market conditions may vary from time to time, the External Investment Manager will make the necessary adjustments. Preferred investments will be in Islamic debt securities that are undervalued relative to their ratings, potential credit rating upgrade candidates, and situational issues with potential for improvement in the credit quality. In addition, movements in the yield curve may uncover further opportunities. (Refer to page 25 for details of investment strategy of the Fund) Min 50% to max 98% in Islamic debt securities Min 2% to max 50% in liquid assets and short-term Islamic money market instruments. (Refer to page 25 for details of asset allocation of the Fund) 12-month profit rate of the Al-Mudharabah General Investment Account of Maybank. The principal risks of investing in the Fund are as follows: - Bond market risk Credit/default risk Interest rate risk Liquidity risk Currency risk (Refer to page 24 for details of potential risk associated with the Fund) Investor Profile The Fund is suitable for investors with the following profile: - Prefer a consistent and steady appreciation in value through investments in debt instruments permissible under Shariah Principles. Possess an investment horizon in excess of five years. Distribution Policy Approved Fund Size Income (if any) is expected to be distributed annually at the Manager s discretion. 1 billion Units AMB Client Services :

13 1.2 Fees and Charges This table describes the charges that you may directly incur when you buy or sell Units of the Funds. FUNDS Maximum Sales Charge (% of NAV per Unit) Redemption Charge (% of NAV per Unit) AMBDY 7.5% Nil AMBDI 7.5% Nil AMBDA 2.0% Nil Switching Fees There is an administrative fee of RM25 per transaction. Units switched are transacted from the Funds NAV per Unit. (Refer to Section 7.7 on page 40 for more details). Transfer Fees An administrative fee of RM3 will be charged for each transaction. (Refer to Section 7.6 on page 40 for more details). EPF Service Charge Investors investing under the EPF Member s Investment Scheme will be levied a service charge of up to 3% of NAV per unit as regulated by EPF The Manager at its discretion may allow for lower sales charge to specific groups, as deemed fit by the Manager under specific circumstances on case to case basis. This table describes the fees and expenses that you may indirectly incur when you invest in the Funds. FUNDS AMBDY ANNUAL MANAGEMENT FEE 1.50% per annum of NAV of the Fund (before deducting annual management fee and trustee fee for the day) calculated on a daily basis. (Refer to Section 7.3 on page 40 for more details) ANNUAL TRUSTEE FEE 0.08% per annum of NAV of the Fund (before deducting annual management fee and trustee fee for the day), subject to a minimum of RM18,000 per annum calculated on a daily basis. (Refer to Section 7.4 on page 40 for more details) AMBDI 1.10% to 1.35% per annum of NAV of the Fund (before deducting annual management fee and trustee fee for the day) calculated on a daily basis. (Refer to Section 7.3 on page 40 for more details) AMBDA Profit sharing scheme of 15:85 of Net Investment income of the Fund between the Manager and the Unit Holder respectively. (Refer to Section 7.3 on page 40 for more details) 0.08% per annum of NAV of the Fund (before deducting annual management fee and trustee fee for the day) subject to a minimum of RM18,000 per annum calculated on a daily basis (Refer to Section 7.4 on page 40 for more details) 0.07% per annum of NAV of the Fund (before deducting annual management fee and trustee fee for the day), subject to a minimum of RM18,000 per annum calculated on a daily basis. (Refer to Section 7.4 on page 40 for more details) This table describes other expenses that you may indirectly incur when you invest in the Funds. Expenses Other annual operating expenses the auditor s fees, tax agent s fee and other relevant professional fees; the costs of printing & distribution of annual and interim reports, tax vouchers and warrants; cost of modification of Deeds other than those for the benefits of the Manager and/or Trustee; and other notices to Unit Holders as well as expenses that are directly related and necessary for the administration of the Funds as set out in the Deed. These costs have been factored into the quoted NAV per Unit as they are related and necessary to the business of the Funds. There are fees and charges involved and investors are advised to consider the fees and charges before investing in the Funds. AMB Client Services :

14 1.3 Information on Transactions Minimum Initial Investment Minimum Subsequent Investment Purchasing of Units Application for Units must be for a minimum of RM1,000 for AMBDA and RM500 for AMBDY and AMBDI. Subsequent additional investments can be made at a minimum of RM100 for AMBDY and AMBDI and RM500 for AMBDA. The investment amount payable by the Unit Holders for the purchase of a Unit is calculated at NAV per Unit. In addition to the investment amount, a sales charge will also be imposed to the Unit Holders. (Refer to Section 8.4, page 42 for more details). For investors investing under the EPF Member s Investment Scheme, a service charge of up to 3% of NAV per unit is levied as regulated by EPF. The NAV per Unit is computed on Forward Pricing basis and published daily in major newspapers. The Manager has taken necessary procedures to ensure accuracy of information of pricing sent to the Bernama and the respective newspapers. However, the Manager would not be held liable for the errors or omission of the printed information on the prices of its Funds in the newspapers. (Refer to Section 8.5, page 43 for more details) Redeeming of Units Cooling-off Period Cooling-off Right Redemption Period Minimum Redemption Amount The redemption amount payable to the Unit Holders for the redemption of a Unit is calculated at NAV per Unit. The NAV per Unit is computed on a Forward Pricing basis and published daily in major newspapers. (Refer to Section 8.4 page 42 for more details) Within six (6) Business Days commencing from the date of purchase i.e. the date on which the Manager receives the application form and the investment amount. This Cooling-off Right, however, is only applicable to qualified Unit Holders. (Please refer to Section 8.7 page 42 for details) The Cooling-off Right is only given to a qualified Unit Holder who is investing in any AMB Family of Funds for the first time. The Manager will pay the redemption proceeds to Unit Holders within ten (10) days of receipt of the request to redeem. There is no minimum redemption amount imposed on a Unit Holder. However, for AMBDY and AMBDI, the minimum balance of Units remaining in the account for partial redemption must always be 100 Units. As for AMBDA, for partial redemption, the minimum balance of Units remaining in the account must always be 1,000 Units. (Refer to Section 8.6 page 43 for details). Frequency of Redemption Redemption Fee Switching Minimum Holdings to Maintain Accounts There is no restriction on the frequency of redemption. There is no fee applicable on redemption for the Funds. (Refer to Section 7.2 page 39 for details on fees and expenses of the Funds) This facility enables Unit Holders to convert Units of one Fund to Units of other Funds in the AMB Family of Funds with conditions as stipulated in section 7.7. The minimum investment that can be switched per transaction is one thousand (1,000) Units. An administrative fees of RM25 will be charged per transaction. (Refer to Section 7.7 on page 40 & Section 8.12 on page 45 for more details) For AMBDY and AMBDI, the minimum balance of Units remaining in the account must always be 100 Units and for AMBDA, the minimum balance of Units must always be 1,000 Units. AMB Client Services :

15 Transfer of Units A Unit Holder may fully or partially transfer his Units in a Fund to another Unit Holder. However, for AMBDY and AMBDI, the minimum balance of Units remaining in the account must always be one hundred (100) Units. As for AMBDA, for partial transfer, the minimum balance of Units remaining in the account must always be one thousand (1,000) Units. An administrative fee of RM3 will be charged for each transfer. (Refer to Section 8.11 on page 45 for more details) Note: The Manager will ensure that the prices forwarded to the press for publication are accurate. However, the Manager cannot be held liable for any error in prices finally published in the press. Investors may contact any Distribution Branch to further confirm the Unit prices. 1.4 Special Benefit Free Takaful Insurance For AMBDY and AMBDI Eligible Unit Holders (natural persons) of AMBDY and AMBDI will be given free Group Personal Accident insurance coverage. Unit Holders holding a minimum of 2,000 Units and above will automatically be covered under Group Personal Accident Takaful. The sum covered would be RM 1, for every 2,000 Units held subject to a minimum investment of 2,000 Units and maximum coverage of RM200,000 per Unit Holder. (Refer to chapter 3 for more details). The terms and conditions of the free takaful insurance scheme as administered by the Manager shall apply. Please contact the Manager on the terms and conditions of the free takaful insurance. 1.5 Other Information Unit Holders may refer to the following Deeds for more specific information on the Funds, which are available at the principal office of the Manager. 1. Deed in relation to AMBDY dated October 25, First Supplemental Deed in relation to AMBDY dated September 12, Second Supplemental Deed in relation to AMBDY dated May 26, Third Supplemantal Deed in relation to AMBDY dated August 13, Deed in relation to AMBDA dated March 29, First Supplemental Deed in relation to AMBDA dated May 26, Second Supplemantal Deed in relation AMBDA dated August 13, Principal Deed in relation to AMBDI dated September 4, First Supplemental Deed in relation to AMBDI dated August 13, 2008 Prospective Unit Holders should read and understand the contents of this Prospectus and if necessary, consult your professional advisor. 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 on page 13. Past performance of the Funds are not an indication of its future performance. There are fees and charges involved and investors are advised to consider the fees and charges before investing in the Funds. AMB Client Services :

16 2 Risk Factors 2.1 Risks of Investing in Unit Trusts All investments carry some form of risk. It is important to note that when you invest you should be prepared to accept a degree of risk, as most investments are affected by ever changing market conditions, some of which impact positively and some negatively. Therefore, no matter how experienced a fund manager may be, certain factors, which will affect the value of investments, may be beyond their control. So, the value of your investments may go down as well as up. One should consider the following when investing in a unit trust fund: - Stock or Bond Market Risk For a unit trust that has stocks or bonds in its portfolio, fluctuations in the market performance due to factors such as fluctuation in interest rates, changes in economic climate, political and social environment that will affect the stock or bond market as a whole, will also affect the value of investment either in a positive or negative way. Individual Stock Risk The performance of a fund that invests in stocks is affected by every individual stock that the said fund has invested in. The volatility of prices in each stock will affect the fund s value daily. Compliance Risk This is the risk that the manager and others associated with the scheme will not follow the rules set out in the scheme s constitution and internal policies, or the law that governs the scheme, or will act fraudulently or dishonestly. However, this risk is greatly reduced via stringent internal controls and constant cross-departmental checking employed by the manager. In addition, a yearly or any unscheduled internal audit exercise will be conducted to check any compliance matters that might have been inadvertently overlooked by compliance department. The presence of the trustee whose duty is to ensure that the fund s investment mandate is complied with will further add to the reduction of such risks. Inflation Risk Ideally the purpose of any investment is to secure returns that are greater than the inflation rate. While a fund will constantly seek to maximise returns and exceed inflation rate, it may occasionally experience losses, which result in returns that will not keep pace with inflation in the short run. Liquidity Risk The various securities that are purchased by a fund may encounter liquidity risk. Liquidity risk relates to the fund s ability to quickly and easily trade, at a reasonable price, in and out of positions. Should a fund comprise a security that has become temporarily or permanently illiquid or difficult to sell, the fund manager may need to sell the security at a discount to its fair value, which eventually affects the fund s value. Management Risk Performance of the fund depends on the experience, expertise, knowledge and investment techniques of the fund manager. Poor management of a fund can cause considerable losses to the fund, which in turn may affect the capital invested. Institutional Risk The risk that the institution, which operates the fund, will collapse. Returns Not Guaranteed As a result of market risks, the manager is unable to guarantee the distribution payout to unit holders or the investment returns of the fund. However, the manager will take reasonable steps to ensure that this risk is minimized through a prudent investment approach, which is centred on fundamental stocks and market analysis. Loan Financing Risk Investors who take end-financing loans to purchase units in a unit trust fund must be prepared to accept gearing risks as the prices of the units can go down as well as up. The investor may be required to top up the difference in the event the unit price goes below the margin of advance. Interest Rate Risk Fixed income securities and bonds are particularly sensitive to movements in interest rates. When interest rates rise, the value of fixed income securities and bond prices fall and vice versa, thus affecting the net asset value of the fund. The general interest rate of the country may affect the value of the investment even if the fund (e.g. shariah fund) does not invest in interest bearing instruments. AMB Client Services :

17 Credit/Default Risk Credit risk refers to the possibility that the issuer of a fixed income security or bond may not be able to make interest payments or repay the principal in a timely manner. This will translate to losses that will reduce the value of a fund. Currency Risk Currency risk is also known as foreign exchange risk. It is risk associated with investments that are denominated in foreign currencies. When the foreign currencies fluctuate in an unfavorable movement against Ringgit Malaysia, the investments will face currency losses in addition to the capital gains/losses. This willl lead to a lower net asset value of the fund. Country Risk The foreign investments of the Fund may be affected by risks specific to the country, which it invests in. Such risks include changes in a country s economic fundamentals, social and political stability, currency movements and foreign policies etc. These may have an adverse impact on the prices of securities of listed companies. Force Majeure Risk The risk of exposure to force majeure events, where events are not within the control of Manager. This includes terrorist attacks, politically instability, natural disasters and spread of disease where risks are generally unforeseen and may have direct impact on the business. 2.2 Control of Risk The External Investment Manager will take reasonable steps to ensure that the above potential risks are managed by:- (a) (b) actively monitoring the Fund s asset allocation to ensure minimum impact from any adverse market movements. They will ensure that the equities and fixed income securities are carefully selected through site visits, fundamental analysis and portfolio diversification. In the case of fixed income securities, the External Investment Manager will also focus on the credit quality of the fixed income securities, which must be of good investment grade of at least BBB rating or equivalent by RAM, MARC or any other similar rating establishment. investing the Fund over a wide range of equities and fixed income securities of different companies which provides diversification across a number of sectors and industries, minimising the risk not only of any single company s securities becoming worthless, but also of all holdings suffering uniformly adverse business conditions. The External Investment Manager will seek to reduce all these risks associated with the Fund by virtue of its experience, the analytical process and by structuring a broadly diversified investment pool. Others When deemed appropriate and for the benefit of the Fund, the External Investment Manager may take temporary defensive positions in dealing with adverse market, economic, political and other conditions, that maybe inconsistent with the Fund s principal strategy. Please refer to Chapter 3 : Detailed Information on the Funds for information on fund specific risks and risk management. AMB Client Services :

18 3 Detailed Information on the Funds 3.1 Introduction The key distinguishing features of the Funds are shown below in order to assist investors in making an informed judgment of the distinctive features of each Fund in relation to their personal investment and financial goals. Type of Fund Growth Fund Category of Fund Equity Fund AMB Dana Yakin Investment Philosophy AMBDY is an equity fund that offers investors an opportunity to invest in a diversified portfolio of assets managed under investment policies that adhere with the Shariah Principles. By investing in a diversified portfolio of Shariah compliant shares in Malaysia, AMBDY provides investors with a better spread of investments than could be achieved by investors with a small amount of money to invest. Investment Objective The objective of the Fund is to achieve a steady capital growth over the medium to long-term period (two years to five years) through investments permissible under the Shariah Principles. Any material changes to the investment objective of the Fund would require Unit Holders approval. Approved Fund Size The approved Fund size for AMBDY is 1.2 billion Units. Investor Profile AMBDY is suited to investors who are looking for investments in a diversified portfolio of assets that conforms to the Shariah Principles and who have an investment horizon of two (2) years or more. Benefits for Investors AMBDY has been specially designed with adherence to the Shariah Principles. Through diversification process, the risk associated with the investments is spread over the portfolio of stocks and this will bring returns at lower risk to investors compared to investing directly in the stock market. Investors can also benefit from the expertise and resources of the professional External Investment Manager managing the Fund at an affordable cost. Specific Benefits of Investing in AMBDY Free Insurance Protection Coverage Eligible Unit Holders (natural persons) of AMBDY will be given free Group Personal Accident (GPA) insurance coverage. Unit Holders holding a minimum of 2,000 Units will automatically be covered under the GPA insurance coverage. The sum covered would be RM 1, for every 2,000 Units held subject to a minimum investment of 2,000 Units and maximum coverage of RM200,000 per Unit Holder. The GPA insurance coverage covers: (i) Death due to accidental causes only; (ii) Total Permanent Disability (TPD) due to accidental causes; and (iii) Funeral expenses as follows: Units Funeral Expenses 2,000 to 49,999 RM 1,000 50,000 and above RM 2,000 AMB Client Services :

19 While the policy is in force, the amount of coverage shall be based on the amount of Units purchased as at the date of death or disability. Eligible Unit Holders must be aged between 18 and 69 years old. The GPA coverage ceases automatically when you attain the age of 70 years old. Eligible principal Unit Holder and joint holders will be covered under the GPA insurance coverage but, in the case of joint holdings, the sum covered will be shared equally. Strict adherence to the Shariah Principles AMBDY has been specially designed with adherence to the Shariah Principles. A panel of Shariah Committee Members of the Fund comprises of Islamic scholar's monitors the activities of the Fund. Investment Through Diversification AMBDY manages and aims to minimise your risks by investing in a diversified range of halal securities. Regular Savings Plan You have the opportunity to invest on a fixed monthly basis through standing instruction. This plan makes regular savings easy and allows you to arrange transfers from your bank account to AMBDY. Affordability Investors can invest just RM500 as an initial investment and subsequent investments can be made at a minimum of RM100. Accessibility Investors can easily access any Distribution Branch to perform any enquiry or transaction. EPF Members Investment Scheme The Manager is a unit trust management company under the EPF Members Investment Scheme. You may withdraw a portion of your EPF savings to invest in AMBDY, which may provide you the opportunity to reap capital growth, thus increasing the value of your EPF Account 1 Retirement Savings subject to rules and regulations of the EPF Members Investment Scheme from time to time. Potential Risks Associated with AMBDY Stock or Bond Market Risk Fluctuations in the market performance due to factors such as fluctuation in interest rates, and changes in economic climate, political and social environment that will affect the stock or bond market as a whole, will also affect the value of investment either in a positive or negative way. The fluctuations can be significant in the short-term. This is termed as market risk. This impact is minimised through the investment process of portfolio diversification by our External Investment Manager. Individual Stock Risk AMBDY is subject to the volatility of price in the share market. The volatility of prices in each stock will affect the Fund's value daily. The performance of individual stocks, which makes up the portfolio, will fluctuate according to changes in the market value of the investments. The fluctuations can be significant in the short-term. This accounts for the market risk when investing in this Fund. However, this impact is minimised through the investment process of portfolio diversification by our External Investment Manager. Credit/Default Risk Islamic bonds/debt securities are subject to credit/issuer/default risk, which is the risk that the issuer of the Islamic bonds/debt securities becomes unable to service any profit payments or repay the principal amount upon redemption. In the event of such a default, investors may suffer losses with respect to their capital invested and income foregone. To a lesser extent, perception of the issuer s ability to repay its debt obligations may impact its credit rating, resulting in a credit rating downgrade, which may adversely impact the Islamic bonds/debt securities market value. Interest Rate Risk Interest rate risk is inherent in investments of a Fund in fixed income securities, especially for bond or fixed income Funds. Interest rate fluctuations may be attributed to market risks that affect the level of risk free rate. Prices of bonds move inversely with interest rates and would fall in a period of rising interest rates. Investors will suffer capital losses when interest rates rise, resulting in a fall in bond prices. Interest rate risk is particularly high for long-term bonds, and tends to be lower for short-term bonds. Interest rate risk is a general economic indicator that will impact on the management of a Fund regardless of whether it is a Shariah Fund or otherwise. It does not in any way suggest that Shariah Funds will invest in fixed income / debt securities, which are not Shariah approved. All the investments for Shariah Funds accord with the Shariah Principles, the latter being derived from the sources of Islamic jurisprudence namely the Quran, the Sunnah, the Ijma and the Qiyas. AMB Client Services :

20 Liquidity Risk Liquidity risk is related to the Fund's ability to quickly and easily trade, at a reasonable price, into and out of positions. Currency Risk Currency risk is also known as foreign exchange risk. It is risk associated with investments that are denominated in foreign currencies. When the foreign currencies fluctuate in an unfavorable movement against Ringgit Malaysia, the investments will face currency losses in addition to the capital gains/losses. This will lead to a lower NAV of the Fund. Country Risk The foreign investments of the Fund may be affected by risks specific to the country, which it invests in. Such risks include changes in a country economic fundamentals, social and political stability, currency movements and foreign policies etc. These may have an adverse impact on the prices of securities of listed companies. Non-Shariah Compliance Risk This is the risk of securities, which were earlier classified as Shariah approved securities being subsequently classified non-approved securities by the Shariah Advisory Council of the Securities Commission due to certain reasons, such as changes in the companies operations. However, this risk is mitigated by regular review of the Fund's compliance with the list of securities approved by the Shariah Advisory Council of the SC and also monthly review by the Shariah Committee of the Manager of the invested securities. Control of Risk The External Investment Manager will take reasonable steps to ensure that the above potential risks are managed by: a) Actively monitoring the Fund s asset allocation to ensure minimum impact from any adverse market movements. They will ensure that the fixed income securities and equities are carefully selected through site visits, fundamental analysis and portfolio diversification. In the case of fixed income securities, The External Investment Manager will also focus on the credit quality of the fixed income securities, which must have at least BBB rating or equivalent by RAM, MARC or any other similar rating establishment. b) Investing the Fund over a wide range of fixed income securities and equities of different companies which provides diversification across a number of sectors and industries, minimising the risk not only of any single company s securities becoming worthless, but also of all holdings suffering uniformly adverse business conditions. c) Lengthening or shortening the Fund s average maturity period of the fixed income investments (within the Fund s objective) in anticipation of changing interest rates. d) Selecting investments that are bank or government guaranteed or secured against assets to mitigate default risk. The External Investment Manager will seek to reduce all these risks associated with the Fund by virtue of its experience, the analytical process and by structuring a broadly diversified investment pool. Others When deemed appropriate and for the benefit of the Fund, the External Investment Manager may take temporary defensive positions in dealing with adverse market, economic, political and other conditions, that may be inconsistent with the Fund s principal strategy. Investment Policy / Approach This is to attain the Fund's objective of achieving steady capital growth through investment in a diversified portfolio of equities and debt instruments which conform to the Shariah Principles. The policy/approach undertaken will enable the Fund to meet its objective within the investment horizon of medium to long term (two years to five years). Investment Strategy / Investment Mechanism The investment strategy of AMBDY is to enhance the value of the Fund through diversification of stocks that comply with Shariah Principles within the permitted investment parameters. The emphasis is given to companies with reasonably good earnings growth prospects in the medium to longer-term horizon, quality management and good earnings track records. The External Investment Manager will determine the allocation between equity and debt securities to reflect the prevailing investment climate. However, the Fund will maintain a minimum of 10% in cash. In a bull market, the External Investment Manager may invest more in equity and, in a bearish market; the equity portion may be scaled down accordingly. AMB Client Services :