for trusting us on our journey to be one of the top asset management companies in South East Asia The Edge-Thomson Reuters Lipper Fund Awards 2016

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1 for trusting us on our journey to be one of the top asset management companies in South East Asia The Edge-Thomson Reuters Lipper Fund Awards 2016 Group Award Best Overall Group Individual Awards CIMB-Principal Asia Pacific Dynamic Income Fund (MYR), Best Equity Asia Pacific Ex-Japan, 3 years CIMB-Principal Global Titans Fund, Best Equity Global, 3 & 5 years CIMB-Principal Asian Equity Fund, Best Equity Asia Pacific Ex-Japan, 5 years CIMB Islamic Asia Pacific Equity Fund, Best Equity Asia Pacific Ex-Japan Islamic, 3 years Morningstar Fund Awards 2016 CIMB-Principal Asia Pacific Dynamic Income Fund, Best Asia-Pacific Equity Fund 2015 EPF External Portfolio Managers Awards Best 3 Year ROI Domestic Fixed Income : CIMB-Principal Asset Management Berhad

2 MARKET REVIEW Q Global Review In March the Federal Reserve gave markets a further leg up by reiterating its accommodative stance by reducing the number of interest rate hikes, citing global economic and financial developments continue to pose risks and that inflation is expected to remain low in the near term, in part because of earlier declines in energy prices. On the currency front, we had witnessed the strengthening of the Malaysian Ringgit (MYR) and it had appreciated about 12% against the US dollar by end of the first quarter During the same period, the prices of Crude Palm Oil (CPO) had also increase by approximately 22.27% from the low of RM2, 200 per metricstantorm2,690permetricstan. The change in the US Federal Reserve s (FED) view to pursue a monetary policy that will not destabilise currency movements brought about a halt in USD s strength and triggered a reversion rally in emerging assets. We expect this risk-taking sentiment to persist for a few months, buoying Asian sukuk/bonds and normalising returns of oversold currencies. With inflation in check, the short-term investment theme will focus on the search for higher yielding assets. However, beyond the short term rally, Asia will have to demonstrate higher productivity and economic growth than the developed markets, in order to have a long-term return of strong capital flows into the region. Ourglobaloutlookremainsunchanged,andthatwewillcontinuetoview2016asayearofslowglobalgrowth, low inflation, and elevated volatility. INVESTMENT OUTLOOK Q Developed Market Analysts expect 5% -6% earnings growth for US and EU regions. At the moment, the markets are already trading at high-teens Price-to-Earnings (P/E) multiples as the valuations remain stretched. For Japan, earnings forecasts continue to be downgraded. The latest Tankan survey was a huge disappointment as the effectiveness of Abenomics started to raise concerns. For the exposure to the developed markets, we would be looking for either a pullback in share prices, or signs of improvement in leading indicators, before going overweight in this region.

3 INVESTMENT OUTLOOK Q Regional Markets Our portfolios are fully invested, with our research efforts are focused on identifying companies which could benefit from the next industrial revolution, infrastructure spending, or capital expenditure cuts. On the positive note, the Central banks in Asia have the options to cut interest rates to boost growth. Indonesia has cut rates without causing weakness to the Rupiah. Thailand, Philippines, Singapore, India and Korea could consider monetary easing this year. This, together with the roll-out of infrastructure spending, could put a bottom to earnings downgrades, especially in Southeast Asia. For China, we expect a gradual weakening in the RMB and in its economy, but an outright crisis or hard-landing would be averted. We are bullish on Asian sukuk/bonds, being the main beneficiaries of low growth, low inflation, and stable currency. We expect fund flows into the region to continue as Asian sukuk/bonds offer an attractive return over sukuk/bonds from developed market. We find Southeast Asia sukuk/bonds especially attractive given the decent yield pick-up, low inflationary outlook, the Fed s accommodative monetary stance, as well as prospects for interest rate reductions. We are underweight in Australia and China, but bullish on Thailand and Taiwan. Singapore and Malaysia offer good investment opportunities in high cash-generative stocks, or stocks with sukuk/bond-like returns. In terms of the investment strategy, the Conventional regional portfolios are fully invested with a portfolio Beta of ~1 and overweight positions in Financials, Industrials and Consumer. We are in the process of identifying beneficiaries of the 4 th Industrial Revolution (automation/robotics, artificial intelligence, virtual and sharing economy). For our Islamic equity portfolios, we are also fully invested to take advantage of the near-term positive sentiment. On sector allocation, we prefer infrastructure-related sectors and financials. We are also heavily invested in Technology as we expect companies in this sector to benefit from the economy of the future. This includes stocks like Tencent, Catcher and LG Chem. We prefer ASEAN to China, as the long-term demographics are favorable, and returns on investment are higher. Malaysia The confluence of the positive macro factors (on the back of higher oil prices, stronger Ringgit and increasing investor optimism) have led to a RM6.1bn net foreign equity inflow into the Malaysian market. In the short-term, we believe that the FBMKLCI should have a positive bias based on the following: Capital flows will continue to seek refuge in defensive higher yielding countries like Malaysia. Earnings momentum, although negative, is bottoming and expectations are more realistic than a year ago. Malaysia is cheap from a USD perspective based on price to book (1.7x currently vs2.1x 5 year average); In terms of strategy, we believe large-cap companies currently offer more value than small-cap companies. As the large capbanks now offer relative value vs. other sectors, we have upgraded banks from underweight to neutral. We also maintain our overweight in Constructions.

4 Fund Highlights Conventional Funds Islamic Funds CIMB-Principal Asia Pacific Dynamic Income Fund CIMB-Principal Global Titans Fund CIMB Islamic Sukuk Fund CIMB Islamic Balanced Fund CIMB-Principal Equity Growth and Income Fund CIMB-Principal Balanced Income Fund CIMB Islamic DALI Equity Fund CIMB Islamic DALI Asia Pacific Equity Growth Fund CIMB-Principal Bond Fund CIMB Islamic Asia Pacific Equity Fund For more information on the funds, please refer to Quick facts: Since inception, CIMB-Principal PRS Plus Asia Pacific ex-japan Equity gained 40.02% value and ranked No.1 among other PRS products in Malaysia in the same category. CIMB-Principal PRS Plus Asia Pacific ex-japan Equity invests at least 95% of its NAV in the CIMB- Principal Asia Pacific Dynamic Income Fund ( Target Fund ), a Malaysian-domiciled fund established on 25 April 2011, which invests in the Asia Pacific ex Japan region. The Fund also maintainsuptoamaximumof5%ofitsnavinliquidassets. Source: Lipper ranking of Universe of Unit Trust Funds as of 1 April 2016

5 Disclaimer We have based this document on information obtained from sources we believe to be reliable, but we do not make any representation or warranty nor accept any responsibility or liability as to its accuracy, completeness or correctness. Expressions of opinion contained herein are those of CIMB-Principal Asset Management Berhad only and are subject to change without notice. The contents in this document is intended for your general information only and must not be construed as an offer or a recommendation to invest in our Funds and neither does it take into account any investor's particular circumstances. The following Prospectuses have been duly registered with the Securities Commission Malaysia: I. CIMB-Principal Asset Management Berhad's Master Prospectus Issue No. 19 dated 30 June II. CIMB-Principal Asset Management Berhad's Master Prospectus(Shariah-compliant Funds) Issue No. 8 dated 30 June The following Disclosure Documents have been duly registered with the Securities Commission Malaysia( SC ): CIMB-PrincipalPRSPlus ᴧ First ReplacementDisclosureDocumentdated31July2014 anditsfirstsupplementaldisclosure Document dated 2 March CIMB-IslamicPRSPlus ᴧ FirstReplacement DisclosureDocument(Shariah-compliantPrivateRetirement Scheme) dated31 July 2014 and its First Supplemental Disclosure Document(Shariah-complaint Private Retirement Scheme) dated 2 March 2015 (collectively refers as Disclosure Documents ) We recommend that you read and understand the contents of these Prospectuses/ Disclosure Documents before investing and that you keep the said Prospectuses/ Disclosure Documents for your records. Any issue of units to which the Prospectuses/ Disclosure Documents relate will only to be made upon receipt of the completed application form referred to in and accompanying the Prospectuses/ Disclosure Documents, subject to the terms and conditions therein. You can obtain copies of the Prospectuses/ Disclosure Documents from the head office of CIMB-Principal Asset Management Berhad or from any of our approved distributors. There are fees and charges involved in investing in the unit trust funds and PRS Funds. We suggest that you consider these fees and charges carefully prior to making an investment. Unit prices and income distributions, if any, may fall or rise. Past performance is not reflective of future performance and income distributions are not guaranteed. Product Highlights Sheet (PHS) is available and investors have the right to request for a PHS. The PHS and any other product disclosure document should be read and understood by investors before making any investment decision. You are advised to read and understand the specific risk associated with the Private Retirement Scheme as detailed in the PHS. You are also advised to read and understand the contents of the Financing For Investment In Unit Trust Risk Disclosure Statement/Unit Trust Loan Financing Risk Disclosure Statement before deciding to obtain financing/loan to purchase units. Where a unit split/distribution is declared, investors are advised that following the issue of additional units/distribution, the NAV per unit will be reduced from pre-unit split NAV/cum-distribution NAV to post-unit split NAV/ex-distribution NAV; and where a unit split is declared, investors should be highlighted of the fact that the value of their investment in Malaysian ringgit will remain unchanged after the distribution of the additional units. All performance figures are extracted from Lipper.