AmTotal Return & AmIttikal

Transcription

1 PP15882/07/2012 (030055) OCTOBER 2017 AmTotal Return & AmIttikal for potential income and growth Page 4 ETFs An Alternative Investment Vehicle Page 6 What s Next for PRS in Malaysia Page 8

2 Note to Valued Investors Contents Dear valued investors, Good day. We are happy to share that we have been acknowledged for the second year running as Malaysia s Best ETF Provider at The Asset Triple A Private Banking, Wealth Management, Investment and ETF Awards 2017 held recently. 1 AmInvest pioneered Malaysia s first bond and equity Exchange Traded Funds (ETFs). 2 Our Acting Chief Executive, Goh Wee Peng in our Feature section takes a closer look at this investment vehicle, its place within investors portfolios as well as provides some industry insights. In this quarter s Fund Focus section, we highlight two AmInvest equity funds and why it deserves a spot in your investment portfolio to reap potential income, at the same time to a lesser extent, potential capital growth. Our AmTotal Return and AmIttikal (Shariah-compliant) funds aim to participate in Malaysia s growth. Year end is also fast approaching and do you know that you can enjoy tax relief of up to RM3,000 yearly with Private Retirement Scheme (PRS)? 3 Our PRS Corner features an interview with Alex Tan Cheng Leong, Head, Retail & Retirement Funds at AmInvest. Hear his thoughts on the current landscape of the PRS industry in Malaysia and opportunities that lie ahead. Happy investing! Yours sincerely, Spotlight 03 Best ETF Provider Award for Second Year Fund Focus 04 AmTotal Return AmIttikal Feature 06 ETFs An Alternative Investment Vehicle to Help Build Your Investment Portfolio PRS Corner 08 The PRS Industry in Malaysia and What s Next New On Board 10 Gan Kong Yik Head of Equities (Conventional) Announcement 11 Performance 12 Happenings 17 Raja Teh Maimunah CEO AmInvestment Bank & Managing Director, Wholesale Banking, AmBank Group Sources 1 The Asset Triple A Private Banking, Wealth Management, Investment and ETF Awards, 2016 and 2017, August Based on the launch dates of the list of ETF in Malaysia. Data extracted from Lipper for Investment Management by Lipper, a Thomson Reuters company and AmInvest as at September Applicable for 10 years from Terms and conditions apply. Details at 02 Editorial Editor : Nancy Chow Contributors : Janet Wong (Senior Vice President, Corporate Communications Desiree Diane Vanisha & Marketing) Designer : Razib Abdul Karim Publisher : AmFunds Management Berhad ( A) Syahir Rokib

3 Spotlight Goh Wee Peng, Acting Chief Executive Officer of AmInvest receiving the Best ETF Provider, Malaysia award at The Asset Triple A Private Banking, Wealth Management, Investment and ETF Awards 2017 at the awards dinner held in Hong Kong on 19 September AmInvest Wins Malaysia s Best ETF Provider Award for Second Year AmInvest, Malaysia s largest Exchange Traded Funds (ETF) Provider 1 was honoured as Best ETF Provider, Malaysia for the second year running at The Asset Triple A Private Banking, Wealth Management, Investment and ETF Awards recently. AmInvest is the brand for AmFunds Management Berhad, a wholly owned subsidiary under AmInvestment Bank. We pioneered Malaysia s first bond and equity ETFs, namely ABF Malaysia Bond Index Fund (ABF Malaysia) in 2005 and FTSE Bursa Malaysia KLCI etf (FBM KLCI etf) in , explained Raja Teh Maimunah, Chief Executive Officer, AmInvestment Bank and Managing Director, Wholesale Banking, AmBank Group. ABF Malaysia buys into a portfolio of mainly Malaysian government bonds. It tracks the performance of Markit iboxx ABF Malaysia Bond Index. FBM KLCI etf is designed to follow the performance of its benchmark index, FTSE Bursa Malaysia KLCI (FBM KLCI). FBM KLCI can be seen as representing the barometer of Malaysia s top 30 largest companies in terms of market capitalisation. For both ETFs, investors can buy into a trading board lot size of 100 units which is listed on Bursa Malaysia. Receiving this award for the second year running is a huge honour for us and we are pleased that our offerings have been recognised as relevant to meet the evolving needs of our investors throughout the years, said Goh Wee Peng, Acting Chief Executive Officer of AmInvest who received the award on AmInvest s behalf at an awards dinner held in Hong Kong on 19 September The Asset is a leading financial publishing group in Asia-Pacific and has the widest reach among Asian issuers and global institutional investors active in the region. 2 For further details on ABF Malaysia and FBM KLCI etf, please visit or Sources: 1 Based on the launch dates of the list of ETFs in Malaysia. Data extracted from Lipper for Investment Management by Lipper, a Thomson Reuters company as at September The Asset Triple A Private Banking, Wealth Management, Investment and ETF Awards, 2016 and 2017, August

4 Fund Focus - AmTotal Return & AmIttikal This year, our domestic equity market has risen to new heights, which is currently riding on a pick-up in the economy, driven by global trades and the government s investment on infrastructure projects. Against this backdrop with the surge of domestic demand, investors can definitely look for opportunities within the local market. AmInvest presents to you two of our flagship equity funds that invest in our local market AmTotal Return (a conventional fund) and AmIttikal (a Shariah-compliant* fund). Both funds are designed to provide a potential regular flow of income and to a lesser extent, capital growth, which cater to investors who have medium to long term investment goals and want to participate in Malaysia s growth. * While the Fund has been structured to conform to Shariah principles, investors should seek their own independent Shariah advisor prior to investing. The two funds are managed by us, backed by our award winning track record: Best Investment Management Company, Malaysia (six consecutive years) World Finance Investment Management Awards 2017 Best Islamic Asset Management House of the Year, Malaysia (three consecutive years) The Asset Triple A Islamic Finance Awards

5 Fund Focus - AmTotal Return & AmIttikal Key Reasons to Invest in AmTotal Return (Fund) Exposure to Malaysia s growth Malaysia s economic outlook remains broadly favourable. Domestic demand is expected to continue to anchor economic growth. Country/Region Gross Domestic Product (GDP) Growth Forecast (%) Malaysia World United States Euro Area Source: World Economic Outlook, International Monetary Fund as at April Forecasts, projections or targets are indicative only and are not guaranteed in any way. Offers long-term capital growth The Fund invests mainly in large cap stocks that generally offer strong balance sheet and cash flow with steady dividend payout. The Fund also invests in small and medium cap stocks to potentially enhance capital growth. Diversified exposure to core business sectors The Fund s sector allocation: Trading / Services Finance Industrial products Technology Consumer products Properties Construction Plantations Real Estate Investment Trusts (REITs) Source: AmFunds Management Berhad as at 31 August Sector allocation is subject to frequent change on a daily basis. Key Reasons to Invest in AmIttikal (Fund) Access to Shariah-compliant income The Fund s investment strategy conforms to principles of Shariah* and aims to provide potential returns through a regular flow of Shariah-compliant income. Multidimensional Shariah-compliant* investment strategy Invests into Dividend paying Shariah-compliant* companies emphasising on dividend growth Invests into Stable cash-flow Shariah-compliant* companies with quality earnings Invests into Shariah-compliant* companies with strong growth potential and attractive valuation * While the Fund has been structured to conform to Shariah principles, investors should seek their own independent Shariah advice prior to investing. Exposure to Malaysia s growth Malaysia s economic outlook remains broadly favourable. Domestic demand is expected to continue to anchor economic growth. Country / Region Gross Domestic Product (GDP) Growth Forecast (%) Malaysia World United States Euro Area Source: World Economic Outlook, International Monetary Fund as at April Forecasts, projections or targets are indicative only and are not guaranteed in any way. Diversified exposure to core business sectors The Fund s sector allocation: Trading / Services Finance Industrial products Technology Consumer products Properties Construction Plantations Infrastructure project companies Source: AmFunds Management Berhad as at 31 August Sector allocation is subject to frequent change on a daily basis. Investment in unit trust funds involve risks which include the risk of total capital loss with no income distribution. For further details, please refer to the Prospectuses. 05

6 Feature ETFs An Alternative Investment Vehicle to Help Build Your Investment Portfolio AmInvest pioneered Malaysia s first bond and equity ETFs namely ABF Malaysia Bond Index Fund in 2005 and FTSE Bursa Malaysia KLCI etf in At present, AmInvest is managing the largest and only bond ETF in the country, ABF Malaysia in terms of fund size of around RM1.5 billion (out of a total industry of RM1.9 billion), which represents 79% of the Malaysian total ETF fund size. 1 Goh Wee Peng, Acting Chief Executive Officer, AmInvest takes a closer look at this alternative investment vehicle, its place within investors portfolios as well as provides some industry insight into how it can be better promoted. Read more on the next page. 06

7 Feature 1 At a glance, Malaysia s current eight Exchange Traded Funds (ETFs) are experiencing low participation due to lack of awareness and understanding of the product as well as perhaps the product s eco-system. How true is such an observation? Lack of awareness and low product comprehension factors do partially contribute to the low rate of participation in Malaysian ETFs. However, it is the ETFs lack of appeal to investors factor that has persistently stunted the growth of ETFs in Malaysia. ETFs should be used by investors to build a diversified portfolio for the long term. Unfortunately, our local investors are short term trading oriented with preference on stock specific ideas. There appears to be a basic mismatch between what our retail investors expect and what ETFs offer. One way of addressing this matter would be to develop short or leveraged ETFs/vehicles to encourage shorter/intraday trading. Another proposition would be to make ETFs easily available and eligible under retirement savings schemes and pension plans for longer terms investments. Our ETFs are designed for small monthly investments of a minimum of 100 units - which is from as low as RM100 and above, and should be affordable to most savers as long term savings instruments. Also, existing ETFs do not appeal to retail investors as Malaysian retail investors are spoilt for choice in terms of unit trusts where actively managed unit trusts are generally still able to deliver the alpha or excess returns compared to the market. In comparison, our present ETFs are index tracking, their returns would generally be giving the market or index returns. This is a phenomenon that occurs in emerging and still developing markets. In addition, the low participation in Malaysian ETFs can also be attributed to the lack of appeal for investors locally. 2 What is the best remedy to spur investors participation in Malaysia given the global value of ETF has easily surpassed 3 trillion United States Dollars (USD) and continues to scale new heights? What are the roles of Bursa Malaysia or fund managers here? Who else should assist in promoting ETFs? The United States (US) ETFs assets under management passed the USD3 trillion mark this year. Between 2015 and 2016, the US market grew by 20%. European countries ETF growth is following closely behind. 2 In the United Kingdom, for instance, the spur of growth came from the fact that financial advisors can no longer take remuneration as a percentage. They have to get used to fee based services rather than trailer commission. For much of Asia 2 and Malaysia included, the mutual fund industry pays commission to intermediaries such as banks, brokerages or financial advisors that might recommend them. Unfortunately, ETFs are disadvantaged because they are traded openly at stock exchanges and not structured to pay commission. As such, a vibrant ETF market would depend on the evolution of fee based advisory model and networks. In the US, ETFs emerged into a market where there were lots of registered investment advisors incentivised to use lower costs products for their clients. 2 We are seeing changes in Asia in Japan, the regulators are encouraging fee based sales with a new fiduciary code for this objective. Neighbouring regulators will draw lessons from the successes or failures of the Japanese model. 2 As a matter of fact, Australia introduced reforms to increase the transparency around fund pricing, encouraging the growth in ETFs. 2 Bursa Malaysia and Securities Commission Malaysia (SC) have been very supportive to grow the fund size, depth and breadth of the ETFs listed in Malaysia. In May 2017 this year, a task force on ETFs chaired by Securities Commission Malaysia (SC) and comprising Bursa Malaysia, fund managers, market makers and institutional investors was set up to attract greater investor participation and incentivising issuances by ETF managers in the Malaysian market. 3 Among the recommendations included facilitating issuances and investments, enabling product innovation and intensifying investor engagements via nationwide roadshows and investor education programmes. 3 3 Although continuous investor education has been staged to create awareness, such effort has not really borne the desired fruits. What is the reason behind this? The ETF market in Asia has indicated despite the growth in The Taiwan, Korea and Japan, challenges relating to costs, regulations and the resulting lack of trading activity still persists. 4 What would be the best way to address the ecosystem factor, i.e. enhancing liquidity as well as getting more market makers and dealers involved? ETFs are liquid as long as the market makers are there quoting bid and offer prices at the exchange. When the market could see that money could be made as a market maker, there will be more players in the market. It boils down to demand for ETFs. In reference to the above task force, SC and Bursa Malaysia are providing rebates and waiving relevant fees applicable to ETF market makers, including a 100% clearing fee rebate as they recognise the important role of market makers in the ecosystem in providing trading liquidity to ETFs. 3 Sources: 1 Based on the launch dates of the list of ETF in Malaysia. Data extracted from Lipper for Investment Management by Lipper, a Thomson Reuters company and AmInvest as at September Article by Financial Times titled Fee model would boost Asia funds published on 11 September Media Release/Statement by Securities Commission Malaysia titled SC-led ETF Task Force Recommends Measures to Spur Innovation and Drive Industry Growth published online via dated 17 May

8 Cover PRS Corner Story The PRS Industry in Malaysia and What s Next AmInvest is an appointed PRS Provider by Securities Commission Malaysia and offers a total of 10 AmPRS funds. Recently, we sat down with Alex Tan Cheng Leong, Head, Retail & Retirement Funds at AmInvest to talk about the current landscape of the PRS industry in Malaysia and opportunities that lie ahead. Read excerpts of the interview below. 1. How has the take-up of AmPRS funds been compared against expectations during its launch in 2013? The take up for AmInvest PRS has been positive since its launch in Our Assets Under Management (AUM) for PRS more than doubled from RM26.25 million as at our Financial Year Ended (FYE) 2014 (31 March 2014) to RM53.18 million as at FYE 2017(31 March 2017). As of 4 October 2017, our AUM for our PRS funds stands at around RM66.20 million. 2. Do you feel that there is sufficient incentive for the investing public to purchase PRS as part of their retirement planning? If not, how can it be improved? The PRS Youth incentive has increased the participation rate from 7% of the total contribution in 2013 to 18% as at end Should the incentive be continued beyond 2018, it could further encourage GEN Y and millennials to save for their retirement via PRS. Based on our findings, the industry ticket size for PRS is only RM3,000 p.a. so far which shows that PRS is still perceived as a tax-saving product. Corporations do not see an incentive to swing contributions from the Malaysian mandatory retirement scheme to PRS, extra work for them. We propose to make it mandatory for all corporates in Malaysia to also undertake PRS as mandatory benefit in overall employee benefits scheme. 3. How has AmInvest supported the rollout of PRS? Has it done anything different to market the product as compared with your other investment products? We distribute PRS through AmBank and Corporate Private Retirement Advisors (CPRA). What makes AmPRS attractive: AmInvest offers the most diverse range of retirement funds in the market across asset classes and geographical exposure in both conventional and Shariah-compliant spaces. We offer a total of 10 AmPRS funds. AmInvest is the only PRS Provider in the country that offers unique PRS non-core funds in its suite of PRS non-core offerings, Real Estate Asia Pacific and bond funds to help investors build and customise their investment portfolios for a comfortable retirement Does AmInvest plan on intensifying the marketing and promotion of PRS? Marketing activities for PRS have always been a priority for us. Our initiatives include: Promotional events and roadshows like participation in investment carnivals, conferences and lunch talks. Interviews and advertisements e.g. print/digital media, AmBank branch displays etc. 5. How and in what ways do you think we can encourage millennials and employers to take up and promote PRS? The growth of the PRS industry is dependent on the development of the capital markets. The mature stock and bond markets will support the growth of the industry. To get the millennials to invest, we should: - Teach them to put saving on auto-pilot. Retirement saving should be treated as a recurring expense, so that it is included in the budget. 08

9 PRS Corner - Let them know that it is never too early to start saving for your golden years. The power of saving lies in compounding interest interest on top of interest which the great Albert Einstein once famously said Compound interest is the eighth wonder of the world. He who understands it, earns it... he who doesn't... pays it. This means, the compounding effect of this will enable you to grow your saving for your retirement. - Teach them to ignore the global market hype or news trends which makes them less confident about investing. The truth is that, asset management companies and fund managers have the expertise to see through the volatility to earn the best returns. Employers should play a part in building a retirement ready nation. The benefits for the employers include: - Attract employees Employer s contribution to PRS enhances the overall benefits package and effectively positions companies as an employer of choice. This would help companies to attract best talents for the job. - Retain employees Through customised vesting programmes, employer contributions to PRS can be an effective tool to retention. - Enriching employees to unleash their potential With PRS, employers could reward and recognise employees efficiency. - Enjoy tax deduction under corporate income tax Employers who contribute to PRS on behalf of their employees are eligible for tax deduction of up to 19%. 3 This allows employers to contribute up to 7% of employees remuneration into PRS. Sources: 1 Data extracted from Securities Commission Malaysia Annual Report 2016 via Data extracted 17 August Based on Lipper for Investment Management by Lipper, a Thomson Reuters company under Global Lipper Classification: Bond Global (AmPRS-Dynamic # Sukuk D), Bond Asia Pacific (AmPRS-Tactical Bond D) and Equity Sector Real Estate Asia Pacific (AmPRS-Asia Pacific REITs D) as at 30 September Data extracted 9 October Data extracted from Data extracted 17 August # The word Dynamic in this context refers to the Fund s investment strategy which is active management, not buy-and-hold strategy. Private Retirement Scheme (PRS) When it comes to savings, every bit counts. Start now to enjoy yearly tax relief of up to RM3,000*. Find out more from our AmBank Personal Banker or Relationship Manager today. Best Pension Fund Manager, Malaysia (four consecutive years) Asia Asset Management Best of the Best Awards 2016 Best Pension Manager, Malaysia World's Best Pension Managers Awards 2017 by Global Finance For more info: Call our AmPRS Consultants: Janice Lee Afiq Abdul Pauline Chia Samantha Loh * Terms apply. Applicable for 10 years, from 2012 to Details at aminvest.com

10 New On Board Gan Kong Yik Head of Equities (Conventional), AmInvest Kong Yik, who has recently joined our investment team, currently manages various AmInvest unit trust and retirement funds. His responsibilities also encompass performing financial analysis, earnings forecasts, valuation of regional banking sectors and making investment recommendations based on these analysis. Kong Yik holds a Bachelor of Business in Economics and Finance from RMIT University, Melbourne, Australia and a Capital Markets Services Representative s License for the regulated activity of fund management. Qualifications: Bachelor of Business in Economics and Finance from RMIT, Melbourne, Australia Hometown: Melaka Hobbies: Running and cycling Favourite food: There are so many that I love but curry noodles definitely tops my list! Favourite travel destination: Japan More about Kong Yik: Years of experience in funds management: 17 years Fund Manager for: AmTotal Return, AmDividend Income and retirement funds. How do you keep yourself in sync with the pace of the markets? Markets are continuously evolving and as such, continuous reading is of upmost importance. My reading list includes dailies, magazines, journals/reports and websites such as Bloomberg news. Who keeps you motivated at work? Being a fund manager was my dream job as far as I could remember. Finding ways to beat the competition and successfully doing so definitely keeps me motivated! Who inspires you/what is your motto at work? Never give up! What is the quote you live by? For me, adopting and most importantly, maintaining a positive attitude as well as outlook plays a key role in striving to be the best version of myself. There will always be challenges in life and it is how you turn these challenges into opportunities for learning and growth is what matters. If you think you can do it, you most likely can. How do you de-stress? To unwind, I love running, cycling and most often, watching movies as well. But spending quality time with my lovely family is my uptmost priority, above everything else. 10

11 Announcement AmInvest is pleased to announce the income distribution for 11 of its conventional and Shariah-compliant funds for the third quarter of the year (July - September) ended 30 September 2017 as follows: Fund Name Fund Category Frequency of Income Distribution (if any) Equity Net Income Distribution per Unit (sen) AmAsia Pacific REITs Fund-of-Funds Yearly 1.57 AmAsia Pacific ex Japan Total Return Equity Yearly 1.07 AmIttikal Equity (Islamic) Yearly 2.67 Global Dividend - RM Class - USD Class Fixed Income/Money Market Wholesale (Feeder Fund) Quarterly AmDynamic # Bond Bond Twice Yearly 1.43 AmConstant Extra 5 Fixed Income (close-ended) Yearly 4.00 AmIncome Management Fixed Income Monthly 1.56 AmTactical Bond Bond Twice Yearly 4.50 Mixed Assets AmDynamic Allocator Fund-of-Funds (Mixed assets) Yearly 1.30 Global Multi-Asset Income - AUD Class - RM Class - SGD Class - USD Class Wholesale (Feeder Fund) Quarterly US-Canada Income and Growth Wholesale (Feeder Fund) Quarterly #The word Dynamic in this context refers to the Fund s investment strategy which is active management, not buy-and-hold strategy. Private Retirement Scheme (PRS) years old? Malaysian? Save RM1,000 and receive another RM1,000* PRS Best Pension Fund Manager, Malaysia (Four consecutive years) Asia Asset Management Best of the Best Awards 2016 Best Pension Manager, Malaysia World's Best Pension Managers Awards 2017 by Global Finance *Receive a one-off incentive of RM1,000 into your PRS account for Malaysians aged between years old who contribute RM1,000 in PRS. Applicable for two years from Terms and conditions apply. Source: aminvest.com Growing Your Investments in a Changing World

12 Performance as at 30 September 2017 Malaysian Fixed Income AmAl-Amin Benchmark (%): Maybank Banking Berhad Al-Mudharabah (GIA) 1-Month Rate Fund Size (RM mil) 6-month 1-year 3-year 5-year FVF* FVC* Very Low AmBon Islam Benchmark (%): BPAM Corporates (3 years to 7 years) Sukuk Index Very Low W.e.f October 2016, BPAM Corporates (3 years to 7 years) Sukuk Index. Prior to October 2016, RAM Quantshop Medium Government Investment Issues (GII) Index. AmBond Low 1.88 Benchmark (%): BPAM Corporates All Bond Index W.e.f October 2016, BPAM Corporates All Bond Index. Prior to October 2016, RAM Quantshop ALL Malaysian Government Securities (MGS) Index. Prior to July 2013, RAM Quantshop Medium Malaysian Government Securities (MGS) Index. AmCash Management Benchmark (%): Malayan Banking Berhad Overnight Rate 1, Very Low AmDynamic # Bond Low 2.35 Benchmark (%): BPAM Corporates All Bond Index W.e.f October 2016, BPAM Corporates All Bond Index. Prior to October 2016, RAM Quantshop All Malaysian Government Securities (MGS) Index. AmIncome Benchmark (%): Malayan Banking Berhad 1-Month Fixed Deposit Rate 3, Very Low AmIncome Extra (AmIncome Extra was relaunched on 5 July 2013) Benchmark (%): BPAM Corporates All Bond Index W.e.f October 2016, BPAM Corporates All Bond Index. Prior to October 2016, Quantshop All MGS Index. Very Low 1.76 AmIncome Plus Benchmark (%): Malayan Banking Berhad 1-Month Fixed Deposit Rate Very Low AmIncome Reward (AmIncome Reward was relaunched on 5 July 2013) Benchmark (%): BPAM Corporates All Bond Index W.e.f October 2016, BPAM Corporates All Bond Index. Prior to October 2016, Quantshop ALL MGS Index. Very Low 1.79 AmIslamic Fixed Income Conservative Benchmark (%): Maybank 12-month General Investment Account rate-i # The word Dynamic in this context refers to the Fund s investment strategy which is active management, not buy-and-hold strategy. Malaysian Mixed Assets Very Low AmBalanced Benchmark (%): 50% Medium MGS Index by Quantshop plus 50% FTSE Bursa Malaysia Top 100 Index AmConservative Benchmark (%): 15% FTSE Bursa Malaysia Top 100 Index plus 85% Quantshop Medium MGS Index AmDynamic Allocator Benchmark (%): AmBank (M) Berhad 12-month fixed deposit rate % per annum AmIslamic Balanced Benchmark (%): 50% FTSE Bursa Malaysia EMAS Shariah Index plus 50% Quantshop Medium GII Index Moderate Low Moderate Low

13 Performance as at 30 September 2017 Malaysian Equity AmDividend Income Benchmark (%): FTSE Bursa Malaysia Top 100 Index AmIslamic Growth Benchmark (%): FTSE Bursa Malaysia EMAS Shariah Index AmIttikal Benchmark (%): Malayan Banking Berhad 12-month Islamic General Investment Account plus 3% spread AmMalaysia Equity Benchmark (%): FTSE Bursa Malaysia EMAS Index AmTotal Return Benchmark (%): Malayan Banking Berhad 12-month Fixed Deposit Rate plus 3% spread Fund Size (RM mil) 6-month 1-year 3-year 5-year FVF* FVC* Moderate Moderate Moderate High Moderate Exchange Traded Funds ABF Malaysia Bond Index Fund 1, Benchmark (%): Markit iboxx ABF Malaysia Bond Index FTSE Bursa Malaysia KLCI etf Benchmark (%): FTSE Bursa Malaysia KLCI Global Fixed Income AmDynamic # Sukuk A Benchmark (%): BPAM Corporate Sukuk Index Low W.e.f July 2015, Bond Pricing Agency Malaysia (BPAM) Corporate Sukuk Index. Prior to July 2015, Bloomberg AIBIM Bursa Malaysia Sovereign Shariah Index. AmTactical Bond B RM Benchmark (%): Quantshop All MGS Index Low # The word Dynamic in this context refers to the Fund s investment strategy which is active management, not buy-and-hold strategy. Global Mixed Asset US-Canada Income and Growth Benchmark (%): S&P 500 Index High Global Multi-Asset Income AUD** AUD Global Multi-Asset Income RM** RM Global Multi-Asset Income SGD** SGD Global Multi-Asset Income USD** USD Fund is actively managed without reference to any performance benchmark. ** Fund performances are calculated based on the funds' currency. Low Low Low Low

14 Performance as at 30 September 2017 Global Equity Advantage Asia Pacific ex Japan Dividend (formerly known as AmAdvantage Asia Pacific ex Japan Dividend) Benchmark (%): MSCI AC Asia Pacific ex-japan Index AmASEAN Equity Benchmark (%): S&P Shariah ASEAN Index Asia Pacific Equity Income (formerly known as AmAsia Pacific Equity Income) Benchmark (%): MSCI AC Asia Pacific ex-japan (Net) Index AmAsia Pacific ex Japan Total Return Benchmark (%): AmBank (M) Berhad 12-month conventional fixed deposit rate plus 5.00% per annum AmAsia Pacific Leisure Dividend Benchmark (%): MSCI Asia Pacific ex-japan Index AmAsia Pacific REITs B RM Benchmark (%): S&P Pan Asia REITs Index Fund Size (RM mil) 6-month 1-year 3-year 5-year FVF* FVC* High Moderate Very High High High Moderate W.e.f July 2014, S&P Pan Asia REITs Index. Prior to July 2014, Bloomberg Asia REIT Index AmAsia Pacific REITs Plus Benchmark (%): S&P Pan Asia Property Index AmAsia-Pacific Property Equities Benchmark (%): FTSE EPRA/NAREIT Pure Asia Total Return Net Dividend Index (capital constrained) AmChina A-Shares Benchmark (%): MSCI China A Total Return (Net) Commodities Equity (formerly known as AmCommodities Equity) Benchmark (%): 50% Dow Jones Islamic Market Oil & Gas plus 50% Dow Jones Islamic Market Basic Materials AmCumulative Growth Benchmark (%): MSCI Far East Ex-Japan Composite Index Global Agribusiness (formerly known as AmGlobal Agribusiness) Benchmark (%): MSCI World High High Very High Very High High Very High The benchmark is only used as a reference benchmark as the Fund is benchmark independent. Global Emerging Market Opportunities (formerly known as AmGlobal Emerging Market Opportunities) Benchmark (%): MSCI Emerging Markets Index AmGlobal Property Equities Fund Benchmark (%): FTSE EPRA/NAREIT Developed Index TR High Very High

15 Performance as at 30 September 2017 Global Equity (cont.) AmOasis Global Islamic Equity Benchmark (%): Dow Jones Islamic Market Index AmPan European Property Equities Benchmark (%): FTSE EPRA/NAREIT Developed Europe Capped Index Net TRI Fund Size (RM mil) 6-month 1-year 3-year 5-year FVF* FVC* High Very High Precious Metals Securities (formerly known as AmPrecious Metals) Very High Benchmark (%): FTSE Gold Mines Index AmSchroders European Equity Alpha Benchmark (%): MSCI Europe Net (Total Return) Index Europe Equity Growth Benchmark (%): S&P Europe LargeMidCap Growth Net Total Return Very High Namaa' Asia-Pacific Equity Growth Benchmark (%): Dow Jones Islamic Market Index Asia-Pacific (ex-japan) High 8.46 Global Dividend - RM Benchmark (%): MSCI All Countries World Net Index Global Dividend - USD Benchmark (%): MSCI All Countries World Net Index RM USD ** The benchmark and fund performance are based on the funds currency AmPRS Core Funds AmPRS-Conservative D AmPRS-Conservative I Benchmark (%): 1-year Malayan Banking Berhad Conventional Fixed Deposit Rate AmPRS-Growth D AmPRS-Growth I Benchmark (%): 30% FTSE Bursa Malaysia Top 100 Index+ 30% MSCI AC Asia Pacific ex Japan Index + 40% RAM Quantshop Medium MGS Index AmPRS-Moderate D AmPRS-Moderate I Benchmark (%): 25% FTSE Bursa Malaysia Top 100 Index + 25% MSCI AC Asia Pacific ex Japan Index + 50% RAM Quantshop Medium MGS Index

16 Performance as at 30 September 2017 AmPRS Non-Core Funds (Conventional) Fund Size (RM mil) 6-month 1-year 3-year 5-year FVF* FVC* AmPRS-Asia Pacific REITs D AmPRS-Asia Pacific REITs I Benchmark (%): S&P Pan Asia REITs Index AmPRS-Tactical Bond D AmPRS-Tactical Bond I Benchmark (%): RAM Quantshop All MGS Index AmPRS Non-Core Funds (Shariah-compliant) AmPRS-Dynamic # Sukuk D AmPRS-Dynamic # Sukuk I Benchmark (%): BPAM Corporates Sukuk Index W.e.f July 2015, Bond Pricing Agency Malaysia (BPAM) Corporate Sukuk Index. Prior to July 2015, Bloomberg AIBIM Bursa Malaysia Sovereign Shariah Index (BMSSI). AmPRS-Islamic Balanced D AmPRS-Islamic Balanced I Benchmark (%): 25% FTSE Bursa Malaysia Emas Shariah Index + 25% MSCI AC Asia Pacific Islamic ex Japan Index + 50% RAM Quantshop Medium GII Index # The word Dynamic in this context refers to the Fund s investment strategy which is active management, not buy-and-hold strategy AmPRS-Islamic Equity D AmPRS-Islamic Equity I Benchmark (%): 40% FTSE Bursa Malaysia Emas Shariah Index + 30% MSCI AC Asia Pacific Islamic ex Japan Index + 30% RAM Quantshop Medium GII Index AmPRS-Islamic Fixed Income D AmPRS-Islamic Fixed Income I Benchmark (%): 1-Year Malayan Banking Berhad General Investment Account Rate Source: Data extracted from Lipper for Investment Management by Lipper, a Thomson Reuters company. Performance is shown in the respective fund s based currency on a Net Asset Value (NAV) price basis with income distribution reinvested. Performance figures are calculated net of all fees, charges and expenses, except entry charge and exit penalty (if any). Past performance is not indicative of future performance. Data extracted 16 October * Based on the funds portfolio returns as at 30 September2017 the Volatility Factor (VF) for the funds are listed in FVF column and classified in different Volatility Classes (VC) as listed in FVC column (Source: Lipper). The VF means there is a possibility for the funds in generating an upside return or downside return around this VF. The VC is assigned by Lipper based on quintile ranks of VF for qualified funds. VF is subject to monthly revision and VC will be revised every 6 months. The funds portfolio may have changed since this date and there is no guarantee that the funds will continue to have the same VF or VC in the future. Presently, only funds launched in the market for at least 36 months will display the VF and its VC. 16

17 Happenings AmInvest PRS Marketing Activities FIMM Annual Convention September 2017 Berjaya Times Square Hotel, Kuala Lumpur At the FIMM Annual Convention 2017, licensed financial planners and consultants kept abreast on investment opportunities through unit trust and Private Retirement Scheme (PRS). AmInvest s Head of Retail & Retirement Funds, Alex Tan Cheng Leong was invited to be part of the panel for PRS for Smart Retirees session to discuss the challenges and value proposition of promoting PRS as a saving vehicle for retirement. Issues such as lack of awareness and interest amongst the young population despite incentives from the government via their up to RM3,000 tax deduction and RM1,000 youth incentive and how to motivate the young people to save for early retirement were discussed by Alex. Alex Tan (L) with other penallists. Alex Tan presenting AmInvest s views on PRS. A snapshot of the points addressed during the panel discussion on the issues and challenges surrounding PRS. 17

18 Happenings Kuala Lumpur Islamic Finance Forum (KLIFF) 3-5 October 2017 Hotel Istana, Kuala Lumpur Kuala Lumpur Islamic Finance Forum (KLIFF) has been held annually since KLIFF offers an integrated basis for promoting Islamic financial system dialogue amongst companies and institutions to foster the orderly development of an efficient, competitive, sound and innovative Islamic finance in a rapidly changing global environment. An AmPRS consultant promoting our AmInvest PRS fund offerings at the conference. InvestSmart Fest October 2017 Kuala Lumpur Convention Centre InvestSmart Fest 2017 (ISF 2017) was recently held at Hall 5, Kuala Lumpur Convention Centre from 13 until 15 October The three-day investor education fair was aimed at equipping investors with the fundamentals in making sound investment decisions. AmInvestment Bank s Funds Management Division was at the exhibition to promote its AmInvest s Private Retirement Scheme (PRS) offerings to the public. Alex Tan Cheng Leong, Head of Retail & Retirement Funds, AmInvest was at the event to share on the topic of "Making Saving For Your Retirement a 2017 Goal with AmInvest PRS" on the first day. Since the launch of the inaugural InvestSmart fest in 2014, it has managed to reach over a million Malaysians through seminars, roadshows and engagement sessions with community leaders across the country. Alex Tan educating the public on the importance of saving for your retirement and AmInvest PRS offerings. AmInvestment Bank s impressive booth at the fair to promote AmInvest PRS fund offerings. 18

19 DISCLAIMERS - The information contained in this promotional material is general information only and does not take into account your individual objectives, financial situations or needs. You should seek your own financial advice from an appropriately licensed adviser before investing. You should be aware that investments in unit trust funds, wholesale funds, exchange-traded funds and Private Retirement Scheme funds carry risks. An outline of some of the risks is contained in the Master Prospectus of AmInvest dated 10 September 2017 and First Supplementary Master Prospectus dated 4 January 2018 ( Prospectuses ); AmInvest Prospectus for Am-Namaa Asia-Pacific Equity Growth, Namaa Asia-Pacific Equity Growth and Am-Mateen Asia-Pacific Equity dated 11 August 2017 and Prospectus for FTSE Bursa Malaysia KLCI etf dated 7 June 2009, its Supplementary Prospectus dated 6 July 2009, its Second Supplementary Prospectus dated 1 December 2014, its Third Supplementary Prospectus dated 1 April 2015 and its Fourth Supplementary Prospectus dated 10 September 2015; Prospectus for ABF Malaysia Bond Index Fund dated 13 July 2009, its Supplementary Prospectus dated 1 December 2014, its Second Supplementary Prospectus dated 1 April 2015 and its Third Supplementary Prospectus dated 10 September 2015; Prospectus for AmConstant Extra 5 dated 12 July 2016; Second Replacement Disclosure Document for AmPRS dated 7 October 2016 and First Supplementary Disclosure Document dated 7 November 2016; Information Memorandum for Advantage Global Equity Volatility Focused dated 20 August 2015; Replacement Information Memorandum for AmChina A-Shares dated 1 December 2014, its First Supplementary Information Memorandum dated 1 April 2015 and Second Supplementary Information Memorandum dated 10 September 2015; Replacement Information Memorandum for Europe Equity Growth dated 1 December 2014, its First Supplementary Information Memorandum dated 1 April 2015 and its Second Supplementary Information Memorandum dated 10 September 2015; Information Memorandum for Global Dividend dated 11 April 2016; Replacement Information Memorandum for Global Multi-Asset Income dated 1 December 2014, its First Supplementary Information Memorandum dated 1 April 2015 and its Second Supplementary Information Memorandum dated 10 September 2015; Replacement Information Memorandum for US-Canada Income and Growth dated 1 December 2014, its First Supplementary Information Memorandum dated 1 April 2015 and its Second Supplementary Information Memorandum dated 10 September Please refer to the Prospectus(es) and/or Information Memorandum(s) and/or Disclosure Document(s) for detailed information on the specific risks for the Funds. Please also refer to the specific risks of the target fund before investing. While Shariah-compliant funds have been structured to conform to Shariah principles, investors should seek their own independent Shariah advice prior to investing. Unit prices and income distribution, if any, may rise or fall. Past performance of a Fund is not indicative of future performance. Please consider the fees and charges involved before investing. Investors are advised that following the issue of distribution, the Net Asset Value (NAV) per unit will be reduced from cum-distribution NAV to ex-distribution NAV. Units will be issued upon receipt of completed application form accompanying the Prospectus(es), Information Memorandum(s) and/or Disclosure Document(s) and subject to terms and conditions therein. You have the right to request for a copy of Product Highlights Sheet for the Fund. You are advised to read and understand the contents of the Product Highlights Sheet and/or Prospectus(es) and/or Information Memorandum(s) and/or Disclosure Document(s) before making an investment decision. The Prospectus(es) and/or Information Memorandum(s) and/or Disclosure Document(s) have been registered/lodged with the Securities Commission Malaysia, who takes no responsibility for its contents. You can obtain a copy of the Product Highlights Sheet, Prospectus(es) and/or Information Memorandum(s) and/or Disclosure Document(s) from any of our representative offices and authorised distributor. AmInvest [AmFunds Management Berhad and AmIslamic Funds Management Sdn Bhd] does not guarantee any returns on the investments. In the event of any dispute or ambiguity arising out of the other language translation in this material, the English version shall prevail. The Privacy Notice can be accessed via and available at our head office. For our Exchange Traded Funds (ETFs), you may also view the Prospectus(es) from or at the Funds' respective websites: and You should rely on your evaluation to assess the merits and risks of the investment. If you are in doubt as to the action to be taken you should consult your stockbroker, bank manager, solicitor, accountant or other professional adviser immediately. While AmFunds Management Berhad provides the information in good faith, it accepts no responsibility for the accuracy, completeness or timeliness of the information. All fees, charges and expenses disclosed in this issue of Insight are expressed on a Goods and Services Tax (GST)-exclusive basis. Accordingly, to the extent that services provided are subject to GST, the amount of GST payable on any related fees, charges and/or expenses will be payable by the unit holder(s) and/or the fund (as the case may be) in addition to the fees, charges and expenses disclosed in this issue. 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. LICENSING DISCLOSURE STATEMENTS -iboxx disclaimer: iboxx is a registered trademark of International Index Company Limited (IIC) and has been licensed for the use by AmFunds Management Berhad. IIC does not approve, endorse or recommend AmFunds Management Berhad or ABF Malaysia Bond Index Fund. This product is not sponsored, endorsed or sold by IIC and IIC makes no representation regarding the suitability of investing in the product. FTSE disclaimer: FTSE, FT-SE and Footsie are trademarks of the London Stock Exchange Plc and The Financial Times Limited and are used by FTSE International Limited ( FTSE ) under licence. BURSA MALAYSIA is a trade mark of Bursa Malaysia Berhad ( BURSA MALAYSIA ). The FTSE Bursa Malaysia KLCI is calculated by FTSE. All intellectual property rights in the index values and constituent list vests in FTSE and BURSA MALAYSIA. Neither FTSE nor BURSA MALAYSIA sponsor, endorse or promote this product and are not in any way connected to it and do not accept any liability. AmFunds Management Berhad has obtained full licence from FTSE to use such intellectual property rights in the creation of this product. The FTSE Bursa Malaysia KLCI ( Index ) is calculated by FTSE. All intellectual property rights in the index values and constituent list vests in FTSE and BURSA MALAYSIA. Neither FTSE nor BURSA MALAYSIA sponsor, endorse or promote this product and are not in any way connected to it and do not accept any liability. AmFunds Management Berhad has obtained full license from FTSE to use such intellectual property rights in the creation of this product.