This is a Private Retirement Scheme

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2 Responsibility Statements This replacement Disclosure Document has been reviewed and approved by the directors of Public 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, that there are no false or misleading statements, or omission of other facts which would make any statement in this replacement Disclosure Document false or misleading. Statements of Disclaimer The Securities Commission Malaysia has approved the Scheme and authorised the funds under the Scheme, and a copy of this replacement Disclosure Document has been registered with the Securities Commission Malaysia. The approval and authorisation, as well as the registration of this replacement Disclosure Document should not be taken to indicate that the Securities Commission Malaysia recommends the Scheme or the funds under the Scheme or assumes responsibility for the correctness of any statement made or opinion or report expressed in this replacement Disclosure Document. The Securities Commission Malaysia is not liable for any non-disclosure on the part of Public Mutual Berhad, the PRS Provider responsible for the Scheme and the funds under the Scheme, and takes no responsibility for the contents in this replacement Disclosure Document. The Securities Commission Malaysia makes no representation on the accuracy or completeness of this replacement Disclosure Document, and expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of its contents. Members should rely on their own evaluation to assess the merits and risks of the investment. In considering the investment, members who are in doubt on the action to be taken should consult their professional advisers immediately. Additional Statements Members are advised to note that recourse for false or misleading statements or acts made in connection with this replacement Disclosure Document is directly available through section 92A(3) of the Capital Markets and Services Act Public Mutual PRS Islamic Growth Fund, Public Mutual PRS Islamic Moderate Fund, Public Mutual PRS Islamic Conservative Fund and Public Mutual PRS Islamic Strategic Equity Fund have been certified as being Shariahcompliant by the Shariah Adviser appointed for the funds.

3 CONTENTS GLOSSARY OF TERMS/ABBREVIATIONS 3-7 PRS PROVIDER, TRUSTEE AND ADVISERS KEY FEATURES OF THE SCHEME AND FUNDS Summary of Scheme Information Summary of Key Data of Funds Fees and Charges Avenue for Advice Lodging a Complaint ABOUT PRIVATE RETIREMENT SCHEMES The Private Retirement Scheme Benefits of Investing in Funds under a PRS Risk Factors DETAILED INFORMATION ON THE SCHEME AND FUNDS Scheme Information Fund Profiles Investment Risks Permitted Investments Investment Restrictions Valuation of Permitted Investments Policy on Gearing Shariah Screening Process for The Funds Purification Process for The Funds Zakat for The Funds FEES, CHARGES AND EXPENSES Charges Imposed on Purchase and Redemption of Units Fees and Expenses of The Funds Policy on Stockbroking Rebates and Soft Commissions TRANSACTION INFORMATION Determination of Prices Computation of Prices Where to Purchase or Redeem Units of The Funds How to Purchase Units of The Funds How to Withdraw Units of The Funds How to Switch Units Between Funds How to Transfer Vested Units to Another PRS Provider Minimum Account Balance Cooling-Off Right Distribution Unclaimed Monies Keeping Track of Your Investments 48 1

4 CONTENTS (CONT D) 6. THE PRS PROVIDER Corporate Profile of Public Mutual Roles, Duties and Responsibilities of The PRS Provider Financial Performance of Public Mutual The Board of Directors Profile of Key Management Staff Profile of Key Investment Personnel The Investment Committee The Audit, Risk and Compliance Committee Related Party Transactions/Conflict of Interest Policies and Procedures on Money Laundering Activities Documents Available for Inspection THE TRUSTEE The Trustee s Willingness to Assume Position Roles, Duties and Responsibilities of The Trustee Profile of AmanahRaya Trustees Berhad THE SHARIAH ADVISER General Information On ZICO Shariah Roles and Responsibilities of The Shariah Adviser Profile of Designated Persons Responsible for Shariah Matters Relating to The Funds SALIENT TERMS OF THE DEED Members Rights and Liabilities Maximum Fees and Charges Permitted by The Deed Permitted Expenses Payable Out of The Funds Retirement and Replacement of The PRS Provider Retirement, Removal and Replacement of The Trustee Termination of The Scheme or Funds under a Scheme Members Meeting Withdrawals Switching and Transfer of Units The Deed 68 CONDITIONS OF APPROVAL OF THE SCHEME AND AUTHORISATION OF THE CORE FUNDS BY THE SC 69 TAXATION OF THE FUNDS AND MEMBERS DIRECTORY OF PUBLIC MUTUAL BRANCH OFFICES AND CUSTOMER SERVICE CENTRES DIRECTORY OF PUBLIC MUTUAL AGENCY OFFICES 75 DISTRIBUTION POINTS OF INSTITUTIONAL PRS ADVISER 76 2

5 GLOSSARY OF TERMS/ABBREVIATIONS ART blue chip stocks Bursa Securities Business Day(s) AmanahRaya Trustees Berhad ( T) High quality stocks of companies which have a track record of stable earnings and dividends of at least 10 years. Bursa Malaysia Securities Berhad Each weekday in which Bursa Securities is open for dealing. Note: For Public Mutual PRS-Islamic Growth Fund, Public Mutual PRS Islamic Moderate Fund and Public Mutual PRS Islamic Strategic Equity Fund, the PRS Provider may declare certain Business Days to be non-business Days, although Bursa Securities is open for business, if one or more of the foreign markets in which the fund invests therein are closed for business. This is to ensure that members will be given a fair valuation of the fund at all times, be it when purchasing or redeeming units of the fund. CMSA 2007 CMSRL conditionally vested unit cooling-off right Capital Markets and Services Act 2007 as originally enacted and amended from time to time. Capital Markets Services Representative s Licence Conditionally vested unit means a unit which accords a member with entitlement to the unit that is conditional upon fulfillment of condition(s) stipulated in a vesting schedule. The right of a member who makes a contribution in a PRS for the first time, to change his mind and cancel his contribution within 6 Business Days from the date of receipt by Public Mutual, of the application form and payment. Upon the PRS Provider receiving the cooling-off right request from the member and authorisation from the PPA, the PRS Provider will process and pay the cooling-off proceeds to the member within 10 days. Once an individual is a member of a PRS and has exercised his cooling-off right, the cooling-off right is no longer available for any subsequent contributions to that PRS or other PRS. The cooling-off right, however, does not extend to the staff of Public Mutual and persons registered to deal in private retirement schemes. core funds corporate representative DDI defensive stocks Disclosure Document Public Mutual PRS Islamic Growth Fund, Public Mutual PRS Islamic Moderate Fund and Public Mutual PRS Islamic Conservative Fund Staff of IPA(s) who have been appointed and trained to deal in PRS, and are registered with FIMM. Direct Debit Instruction (DDI) refers to regular contributions to the fund(s) made through direct debit authorisation with banks. Stocks which have relatively stable earnings through various economic cycles. Disclosure document of Public Mutual PRS Shariah-based Series 3

6 GLOSSARY OF TERMS/ABBREVIATIONS (CONT D) dividend stocks Stocks which offer consistent dividend yields. Eligible Market A market that (a) is regulated by a regulatory authority; (b) operates regularly; (c) is open to the public; and (d) has adequate liquidity for the purposes of the fund in question. FIMM forward pricing GDP GIA growth stocks GST IIMM incidental index stocks IOSCO IPA IPO Islamic deposits Islamic investment accounts long term LPD member Federation of Investment Managers Malaysia The purchase or redemption of units is based on the NAV per unit of the fund next determined or calculated after the application to purchase or redemption request from member(s) is received by the PRS Provider in proper form. In circumstances where the prior authorisation of the PPA is required, any redemption of units will be at a price that is the NAV per unit of the fund as at the next valuation point after the PPA s authorisation is received by the PRS Provider. Refers to Gross Domestic Product which is the monetary value of all finished goods and services produced within a country in a specific period of time. General Investment Account Stocks of companies with potential price appreciation where the earnings growth potential of the companies is projected to exceed the GDP growth of the country in which the stock is listed in. Goods and Services Tax Islamic Interbank Money Market The term incidental in relation to distribution policy of the funds implies that the main focus of the funds will be on securing capital growth. Index component stocks of a selected benchmark market index. International Organization of Securities Commissions Institutional PRS Adviser (IPA) means an institutional PRS adviser registered with FIMM to market and distribute PRS. Initial Public Offering Sum of money placed with licensed financial institutions in accordance with Shariah principles and the Islamic Financial Services Act Cash placements with licensed financial institutions for the purpose of investments, including for the provision of finance, in accordance with Shariah principles which are mudharabah, musyarakah and wakalah investment accounts. Long term refers to a period of more than 5 years. Refers to Latest Practicable Date which is 5 April All information provided herein shall remain current and relevant as at such date. Member means an individual who has a beneficial interest under a PRS. 4

7 GLOSSARY OF TERMS/ABBREVIATIONS (CONT D) NAV Net Asset Value ( NAV ) of the fund is determined by deducting the value of all the fund s liabilities (include all amounts payable by the fund, accrued expenses and taxes, and any appropriate provisions for contingencies) from the value of the fund s assets, at the valuation point. For the purpose of computing the annual management fee, annual trustee fee and annual PPA fee, the NAV of the fund should be inclusive of the management fee, trustee fee and PPA fee for the relevant day. NAV per unit non-core fund OTC PMO The NAV per unit is the NAV of a fund divided by the number of units in circulation at the valuation point. It forms the basis upon which the prices of units of a fund are calculated. Public Mutual PRS Islamic Strategic Equity Fund. Over-the-counter Public Mutual Online ( PMO ) is an online facility which allows you to perform fund transactions (such as purchase and switching of units) and gives you quick and easy access to information on your investments. Members can apply for PMO by submitting the PMO Service Application Form personally at any Public Mutual or Public Bank branch. Alternatively, you may also register for PMO through our Customer Service Centre kiosks located at selected shopping malls or Public Bank s Automated Teller Machines (ATMs) if you are a Public Bank ATM user or via if you are a subscriber of PBe. PRC Private Pension Administrator (PPA) PRS Public Bank Public Mutual or the PRS Provider Public Mutual PRS Conventional Series retirement age RM SAC BNM SACSC SC PRS Consultant A person approved by the SC to perform the functions of record keeping, administration and customer service for members in relation to contributions made in respect of a PRS and such other duties and functions as may be specified by the SC. Private Retirement Scheme Public Bank Berhad (6463-H) Public Mutual Berhad (23419-A) Public Mutual PRS Conventional Series comprises Public Mutual PRS Growth Fund, Public Mutual PRS Moderate Fund, Public Mutual PRS Conservative Fund, Public Mutual PRS Equity Fund and Public Mutual PRS Strategic Equity Fund and any other fund as may be included into this scheme by the PRS Provider from time to time. The age of 55 years or any other age as may be specified by the Securities Commission Malaysia. Ringgit Malaysia Shariah Advisory Council of Bank Negara Malaysia Shariah Advisory Council of the Securities Commission Malaysia Securities Commission Malaysia 5

8 GLOSSARY OF TERMS/ABBREVIATIONS (CONT D) SC Guidelines Shariah Shariah requirements Special Resolution Guidelines on Private Retirement Schemes issued by SC, as may be amended or replaced from time to time. Islamic law originating from the Qur an (the holy book of Islam), and its practices and explanations rendered by the prophet Muhammad (pbuh) and ijtihad of ulamak (personal effort by qualified Shariah scholars to determine the true ruling of the divine law on matters whose revelations are not explicit). Is a phrase or expression which generally means making sure that any human conduct must not involve any elements which are prohibited by the Shariah and that in performing that conduct all the essential elements that make up the conduct must be present and each essential element must meet all the necessary conditions required by the Shariah for that element. A resolution passed at a meeting of members duly convened and held in accordance with the provisions of the Deed and carried by a majority consisting of not less than three quarters of the members voting thereat upon a show of hands or if a poll is duly demanded and taken by a majority consisting of not less than three quarters in number of the votes given on such poll. For the purpose of terminating or winding-up a non-core fund, a special resolution is passed by a majority in number representing at least three-fourth of the value of the units held by members of that non-core fund voting at the meeting duly convened and held in accordance with the provisions of the Deed. Sub-account A A sub-account maintained by the PRS Provider for each member which holds 70% of all contributions made to any fund under the Scheme which is reflected in units. Sub-account B A sub-account maintained by the PRS Provider for each member which holds 30% of all contributions made to any fund under the Scheme which is reflected in units. sukuk the Deed the fund/the funds Sukuk is a financing instrument for the purpose of fund raising exercise whereby the underlying transaction may be structured based on various Shariah principles/ contracts. The Deed means the PRS deed dated 8 November 2012 and all supplemental deeds entered into between the trustee and the PRS Provider for the registered holders of the funds. The following funds covered under this Disclosure Document are collectively called the funds and individually called the fund : Public Mutual PRS Islamic Growth Fund Public Mutual PRS Islamic Moderate Fund Public Mutual PRS Islamic Conservative Fund Public Mutual PRS Islamic Strategic Equity Fund PRS-IGRF PRS-IMDF PRS-ICVF PRS-ISEQF the Scheme UIC The Scheme refers to Public Mutual PRS Shariah-based Series. Unit in circulation ( UIC ) refers to the total number of units in issue at a point in time. 6

9 GLOSSARY OF TERMS/ABBREVIATIONS (CONT D) valuation point Valuation point refers to such a time(s) on a Business Day as may be decided by the PRS Provider wherein the NAV of the fund is calculated. Under normal circumstances, only one valuation is conducted on each Business Day. For PRS-IGRF, PRS-IMDF and PRS-ISEQF, the valuation of the funds will be conducted after the close of business of Bursa Securities for the relevant day. As certain foreign markets in which the funds may invest in have yet to close due to the different time zones of these countries, the valuation point may be extended to 5:00 p.m. the next business day of Bursa Malaysia (or any other such time as may be permitted by the relevant authorities from time to time) in which the PRS Provider is open for business. The valuation of PRS-ICVF for each Business Day is carried out at the end of the day immediately upon closing of the Bursa Securities. vested unit vesting schedule ZICO Shariah or the Shariah Adviser Vested unit means a unit which accords a member with unconditional entitlement to such unit. Vesting schedule refers to a schedule that determines the entitlement of an employee s accrued benefits based on terms of service. ZICO Shariah Advisory Services Sdn. Bhd. ( D) 7

10 PRS PROVIDER, TRUSTEE AND ADVISERS PRS PROVIDER Public Mutual Berhad (23419-A) Registered and business address: Block B, Sri Damansara Business Park Persiaran Industri, Bandar Sri Damansara Kuala Lumpur Tel: Fax: Hotline: Web: Board of Directors Tan Sri Dato Sri Dr. Teh Hong Piow (Non-Executive Director/Chairman) Tan Sri Dato Sri Tay Ah Lek (Non-Executive Director) Dato Sri Lee Kong Lam (Non-Executive Director) Dato (Dr) Haji Mohamed Ishak Bin Haji Mohamed Ariff (Non-Executive Independent Director) Mr. Quah Poh Keat (Non-Executive Director) Dato Mohammed Najeeb Bin Abdullah (Non-Executive Independent Director) Dato Mohd Hanif Bin Sher Mohamed (Non-Executive Independent Director) Ms. Yeoh Kim Hong (Chief Executive Officer/Executive Director) Members of the Investment Committee Tan Sri Dato Sri Tay Ah Lek Dato Sri Lee Kong Lam Dato (Dr) Haji Mohamed Ishak Bin Haji Mohamed Ariff (Independent) Mr. Quah Poh Keat Dato Mohammed Najeeb Bin Abdullah (Independent) Dato Mohd Hanif Bin Sher Mohamed (Independent) Ms. Yeoh Kim Hong Members of the Audit, Risk and Compliance Committee Tan Sri Dato Sri Tay Ah Lek Dato Sri Lee Kong Lam Dato (Dr) Haji Mohamed Ishak Bin Haji Mohamed Ariff Mr. Quah Poh Keat Dato Mohammed Najeeb Bin Abdullah Dato Mohd Hanif Bin Sher Mohamed Company Secretaries Ms. Tang Pueh Fong (MIA 8078) c/o Public Mutual Berhad 2 nd Floor, Block B, Sri Damansara Business Park Persiaran Industri, Bandar Sri Damansara Kuala Lumpur Ms. Ting Lee Ling (MIA 16237) c/o Public Mutual Berhad 2 nd Floor, Block B, Sri Damansara Business Park Persiaran Industri, Bandar Sri Damansara Kuala Lumpur PRIVATE PENSION ADMINISTRATOR Level 6, Menara Mudajaya Jalan PJU 7/3, Mutiara Damansara Petaling Jaya Selangor Darul Ehsan Tel: AskPPA@ppa.my Web: 8

11 PRS PROVIDER, TRUSTEE AND ADVISERS (CONT D) TRUSTEE AmanahRaya Trustees Berhad ( T) Registered address: Business address: Tingkat 11, Wisma AmanahRaya Tingkat 2, Wisma AmanahRaya II No. 2, Jalan Ampang No. 21, Jalan Melaka Kuala Lumpur Kuala Lumpur Tel: Fax: Web: Trustee s Delegate Citibank, NA, Singapore Branch Registered and business address: 8 Marina View #21-00 Asia Square Tower 1 Singapore Tel: Web: SHARIAH ADVISER ZICO Shariah Advisory Services Sdn. Bhd. ( D) Level 7-6, Menara Milenium Jalan Damanlela Pusat Bandar Damansara Kuala Lumpur Tel: Fax: Web: AUDITORS Ernst & Young Level 23A, Menara Milenium Jalan Damanlela Pusat Bandar Damansara Kuala Lumpur TAX AGENT KPMG Tax Services Sdn. Bhd. Level 10, KPMG Tower 8, First Avenue Bandar Utama Petaling Jaya Selangor Darul Ehsan LEGAL ADVISER Soon Gan Dion & Partners 1 st Floor, No. 73 Jalan SS 21/1A Damansara Utama Petaling Jaya Selangor Darul Ehsan PRINCIPAL BANKER Public Bank Berhad Menara Public Bank No. 146, Jalan Ampang Kuala Lumpur 9

12 PRS PROVIDER, TRUSTEE AND ADVISERS (CONT D) FEDERATION OF INVESTMENT MANAGERS MALAYSIA , 6 th Floor, Wisma Tune No. 19, Lorong Dungun Damansara Heights Kuala Lumpur The Trustee and Delegate, Shariah Adviser, Auditors, Tax Agent, Legal Adviser and Principal Banker have given and have not withdrawn their written consent to the inclusion in this Disclosure Document of their names and statements in the manner and context in which such names and statements appear. 10

13 1 KEY FEATURES OF THE SCHEME AND FUNDS 1.1 SUMMARY OF SCHEME INFORMATION The PRS Provider Name of Scheme General information on the Scheme and brief description on the operations of the Scheme Public Mutual Berhad (23419-A) Public Mutual Private Retirement Scheme (PRS) Shariah-based Series Public Mutual PRS Shariah-based Series comprises the following funds: Core Funds Non-Core Fund Public Mutual PRS Islamic Growth Fund (PRS-IGRF) Public Mutual PRS Islamic Moderate Fund (PRS-IMDF) Public Mutual PRS Islamic Conservative Fund (PRS-ICVF) Public Mutual PRS Islamic Strategic Equity Fund (PRS-ISEQF) You can select to contribute under the default option or non-default option as explained below: Your contribution under the default option will be automatically allocated to the core fund that corresponds to the age group as specified below: Default option Core Funds Age Group* PRS-IGRF Age below 40 PRS-IMDF Age 40 to below 50 PRS-ICVF Age 50 and above * The age group may be subject to changes as may be determined by the relevant authorities from time to time. If you make your first contribution to the Scheme a month before you reach the age of 40 or 50, as the case may be, your contribution will be allocated to PRS-IMDF or PRS-ICVF as the case may be. Unless otherwise instructed, your contribution will be automatically switched (without charge) into the relevant core fund, before the end of the next calendar month from the day you attain the age as specified in the table above. You can actively select one or more funds regardless of your age. Nondefault option Where an employer makes a contribution on behalf of an employee whether subject to a vesting schedule or otherwise: - The choice of funds under the Scheme (including the right to switch to another fund) is to be made by the employee. - If an employee does not make a fund selection, the default option applies. Vested units are maintained in two separate sub-accounts by the PRS Provider: i. Sub-account A - holds 70% of all contributions made, reflected in units; and ii. Sub-account B - holds 30% of all contributions made, reflected in units. 11

14 KEY FEATURES OF THE SCHEME AND FUNDS (CONT D) 1.2 SUMMARY OF KEY DATA OF FUNDS PRS-IGRF PRS-IMDF PRS-ICVF PRS-ISEQF Category of fund Core (Growth) Core (Moderate) Core (Conservative) Equity Launch date 26 November November 2015 Financial year end 31 March Fund objective The fund seeks long-term capital growth and to a lesser extent income. The fund seeks income and capital growth over the long-term through a balanced asset allocation approach. The fund seeks income consistent with capital preservation. Note: This is neither a capital guaranteed nor a capital protected The fund seeks to achieve long-term capital growth. fund. Member profile Risk tolerant. Preference for long-term capital growth. With at least 15 years to retirement. Age below 40 if contribute under the default option. Moderate risk tolerance. Preference for capital growth and to a lesser extent income*. With at least 10 years to retirement. Age 40 to below 50 if contribute under the default option. Generally conservative and risk averse. Preference for income*. Age 50 and above if contribute under the default option. Note: * Distribution (if any) will be automatically Risk tolerant. Preference for long-term capital growth. Note: * Distribution reinvested into the (if any) will be fund. automatically reinvested into the fund. 12

15 KEY FEATURES OF THE SCHEME AND FUNDS (CONT D) PRS-IGRF PRS-IMDF PRS-ICVF PRS-ISEQF Investment strategy PRS-IGRF seeks to achieve its objective by investing in a diversified portfolio of Shariahcompliant equities and sukuk in the domestic and selected foreign markets. The fund will invest up to 70% of its NAV in Shariahcompliant equities. The balance of the fund s NAV will be invested in sukuk and Islamic liquid assets which include Islamic money market instruments, Islamic investment accounts and Islamic deposits. To achieve increased diversification, the fund may invest up to 70% of its NAV in foreign markets. PRS-IMDF seeks to achieve its objective by investing in a diversified portfolio of Shariahcompliant equities and sukuk in the domestic and selected foreign markets. The fund will invest up to 60% of its NAV in Shariahcompliant equities. The balance of the fund s NAV will be invested in sukuk and Islamic liquid assets which include Islamic money market instruments, Islamic investment accounts and Islamic deposits. To achieve increased diversification, the fund may invest up to 60% of its NAV in foreign markets. PRS-ICVF seeks to achieve its objective by investing in a diversified portfolio of sukuk, Islamic money market instruments, Islamic investment accounts and Islamic deposits as well as Shariahcompliant equities, all in the domestic market. The fund will invest 60% to 80% of its NAV in sukuk and at least 20% of its NAV in Islamic money market instruments. The fund may invest up to 20% of its NAV in Shariahcompliant equities. PRS-ISEQF seeks to achieve its objective by investing 75% to 98% of its NAV in Shariahcompliant equities and collective investment schemes which comprises a diversified portfolio of Shariahcompliant blue chip stocks, index stocks and growth stocks in the domestic and selected foreign markets. The balance of the fund s NAV will be invested in sukuk and Islamic liquid assets which include Islamic money market instruments, Islamic investment accounts and Islamic deposits. The fund may invest up to 98% of its NAV in foreign markets. Asset allocation Up to 70% of NAV in Shariahcompliant equities. At least 30% of NAV in sukuk and Islamic liquid assets. Up to 60% of NAV in Shariahcompliant equities. At least 40% of NAV in sukuk and Islamic liquid assets. 60% to 80% of NAV in sukuk. 20% to 40% of NAV in Islamic money market instruments, Islamic investment accounts and Islamic deposits (with at least 20% of NAV invested in Islamic money market instruments). Up to 20% of NAV in Shariahcompliant equities. 75% to 98% of NAV in Shariahcompliant equities. The balance of NAV in sukuk and Islamic liquid assets. 13

16 KEY FEATURES OF THE SCHEME AND FUNDS (CONT D) PRS-IGRF PRS-IMDF PRS-ICVF PRS-ISEQF Benchmark* 35% FTSE Bursa Malaysia Hijrah Shariah Index, 35% customised index by S&P Dow Jones Indices, LLC based on Top 100 constituents by market capitalisation of the S&P Shariah BMI Asia Ex-Japan Index and 30% 3-Month IIMM rate. 30% FTSE Bursa Malaysia Hijrah Shariah Index, 30% customised index by S&P Dow Jones Indices, LLC based on Top 100 constituents by market capitalisation of the S&P Shariah BMI Asia Ex-Japan Index and 40% 3-Month IIMM rate. 12-Month GIA rate quoted by Bank Negara Malaysia. 50% FTSE Bursa Malaysia Hijrah Shariah Index, 40% customised index by S&P Dow Jones Indices, LLC based on Top 100 constituents by market capitalisation of the S&P Shariah BMI Asia Ex-Japan Index and 10% 3-Month IIMM rate. Principal risks Market risk, specific security risk, liquidity risk, currency risk, country risk and risk of non-compliance with Shariah requirements. Market risk, specific security risk, interest rate risk, credit risk, liquidity risk, currency risk, country risk and risk of non-compliance with Shariah requirements. Specific security risk, interest rate risk, credit risk, liquidity risk and risk of non-compliance with Shariah requirements. Market risk, specific security risk, liquidity risk, currency risk, country risk and risk of non-compliance with Shariah requirements. Trustee Shariah Adviser AmanahRaya Trustees Berhad ( T) ZICO Shariah Advisory Services Sdn. Bhd. ( D) * The risk profile of the fund is not the same as the risk profile of the benchmark. You may refer to Chapter 3: Detailed Information on The Scheme and Funds for a better understanding of the characteristics and objective of the funds to help you decide on the fund that is most compatible with your personal investment temperament and financial goals. You may refer to page 38 for more information on zakat. Please refer to Chapter 6: The PRS Provider for profiles of the key members of the Investment team. For more information on the trustee, please refer to Chapter 7: The Trustee. There are risks involved in investing with the funds. The general risks of investing with the funds are tabulated in Chapter 2: About Private Retirement Schemes, while information on fund specific risks are presented in Chapter 3: Detailed Information on The Scheme and Funds. The funds are governed by a deed dated 8 November 2012, a first supplemental deed dated 19 August 2014 and second supplemental deed dated 23 June

17 KEY FEATURES OF THE SCHEME AND FUNDS (CONT D) 1.3 FEES AND CHARGES The tables below describe the charges that you may directly incur when you purchase or redeem units of the funds. Charges Imposed by PRS Provider on Purchase or Redemption of Units Purchase of units through PRCs, IPA and the PRS Provider. Sales charge per unit The PRS Provider may at its discretion charge a lower sales charge based on criterion as may be determined from time to time. Please refer to page 42 for illustration on computation of sales charge. Up to 3.0% of NAV per unit. Redemption charge per unit Please refer to page 43 for illustration on computation of redemption charge. Nil Switching fee Switching between funds in this Scheme and between funds in another PRS managed by Public Mutual. Nil Transfer fee (to another PRS provider) Administration fee is charged for each transfer request. RM25 Bank charges, courier charges and any other indirect charges as a result of contribution, redemption, withdrawal and/or transfer transactions will be borne by you. Charges Imposed by PPA on Purchase or Redemption of Units PPA account opening fee The account opening fee will be deducted from the first contribution made. RM10 (one off). PPA annual fee The PPA annual fee is not payable for the year the account is opened and not payable for the year(s) where no contributions are made. RM8 per annum. 15

18 KEY FEATURES OF THE SCHEME AND FUNDS (CONT D) Fees Incurred on Contributions in The Funds This table describes the fees that you may indirectly incur when you contribute to the funds. PRS-IGRF PRS-IMDF PRS-ICVF PRS-ISEQF 1.50% per annum of the NAV. 1.25% per annum of the NAV. 1.0% per annum of the NAV. 1.60% per annum of the NAV. Management fee Trustee fee 0.04% per annum of NAV, subject to a maximum fee of RM600,000 per annum. 0.04% per annum of NAV, subject to a maximum fee of RM600,000 per annum. 0.04% per annum of NAV, subject to a maximum fee of RM300,000 per annum. 0.04% per annum of NAV, subject to a maximum fee of RM600,000 per annum. PPA administration fee 0.04% per annum of the NAV. Note: All the above fees and charges are subject to GST which are payable by you. Information on fees and charges of other PRS may be obtained from the PPA website, For more details on fees, charges, expenses and transaction information pertaining to the funds, you may refer to Chapter 4: Fees, Charges and Expenses and Chapter 5: Transaction Information. There are fees and charges involved and potential members are advised to consider them before contributing to the Scheme. 1.4 AVENUE FOR ADVICE For general enquiries or specific assistance regarding your contributions with us, you may contact:- Public Mutual Hotline at ; or Visit any Public Mutual Customer Service Centre located at its branch offices. 16

19 KEY FEATURES OF THE SCHEME AND FUNDS (CONT D) 1.5 LODGING A COMPLAINT You can contact our Customer Service Hotline at for internal dispute resolution. If you are dissatisfied with the outcome of the internal dispute resolution process, you can refer your dispute to the Securities Industry Dispute Resolution Center (SIDREC): (a) via phone to : (b) via fax to : (c) via to : info@sidrec.com.my (d) via letter to : Securities Industry Dispute Resolution Center (SIDREC) Unit A-9-1, Level 9, Tower A Menara UOA Bangsar No. 5, Jalan Bangsar Utama Kuala Lumpur You can also direct your complaint to SC even if you have initiated a dispute resolution process with SIDREC. To make a complaint, please contact the SC s Investor Affairs & Complaints Department: (a) via phone to the Aduan Hotline at : (b) via fax to : (c) via to : aduan@seccom.com.my (d) via online complaint form available at (e) via letter to : Investor Affairs & Complaints Department Securities Commission Malaysia No. 3, Persiaran Bukit Kiara Bukit Kiara Kuala Lumpur FIMM s Complaints Bureau: (a) via phone to : (b) via fax to : (c) via to : complaints@fimm.com.my (d) via online complaint form available at (e) via letter to : Legal, Secretarial & Regulatory Affairs Federation of Investment Managers Malaysia , 6 th Floor Wisma Tune No. 19 Lorong Dungun Damansara Heights Kuala Lumpur Prospective members should read and understand the contents of the Disclosure Document. For information pertaining to the funds, members may consult our team of dedicated PRCs who are registered with FIMM or your professional advisers, or call our Customer Service Hotline at Unit prices and distributions, if any, may go down as well as up. Past performance of the funds is not an indication of their future performance. 17

20 2 ABOUT PRIVATE RETIREMENT SCHEMES 2.1 THE PRIVATE RETIREMENT SCHEME (PRS) PRS is a retirement scheme governed by a trust, offered or provided to the public for the sole purpose, or having the effect, of building up long-term savings* for retirement for its members. A PRS may be illustrated as a tripartite relationship between the PRS Provider, the trustee and members governed by a legally binding deed registered with the SC. The SC regulates the industry as well as the operations and administration of PRS through the CMSA 2007 and SC Guidelines. The PPA which is approved by the SC, perform the functions of record keeping, administration and customer service for members in relation to contributions made in respect of a PRS and any other duties and functions as may be specified by the SC. A range of funds can be offered under a scheme by a PRS provider. Notwithstanding this, a PRS provider must at all times offer 3 core funds for the default option within the scheme. * Funds under PRS are neither capital guaranteed nor capital protected funds. 2.2 BENEFITS OF INVESTING IN FUNDS UNDER A PRS Benefits of investing in funds under a PRS include: 1. Diversification: Diversification involves the process of spreading risk over a broad portfolio of asset classes which include but are not limited to Shariah-compliant stocks and/or sukuk. Further diversification can also be achieved by investing in Shariah-compliant stocks and/or sukuk in different companies, sectors, countries or regions. The funds facilitate the diversification process by providing you with an avenue to pool monies for the purchase of a diversified portfolio of Shariah-compliant stocks and/or sukuk that will bring returns at lower risks compared with investing directly in stock and/or sukuk markets. 2. Professional management: The funds are managed by professional fund managers with the expertise and resources to manage the assets of the fund. You can thus benefit from this professional fund management of investments via the fund at a shared (affordable) cost. 3. Ease of transactions: The funds do not require cumbersome administrative or paperwork or record keeping on your part in managing your investments. 4. Enjoy personal tax relief: If you are a resident in Malaysia and have made contributions to the funds, you are allowed to claim a tax relief on the amount of contribution made to the funds, subject to a maximum amount of RM3,000 per annum (or any other such amount as may be determined by relevant authorities from time to time). 5. Income of the fund is exempt from Malaysian income tax: PRS is an approved scheme for Malaysian income tax purposes pursuant to Section 2 of the Malaysian Income Tax Act 1967 ( the Act ). The income of the funds is exempted from tax under paragraph 20, Schedule 6 of the Act. Since the income of the funds is exempt from Malaysian income tax, the income* distributed from the funds should be exempted from Malaysian income tax as well. * Distribution (if any) will be automatically reinvested into the fund(s). 6. Tax deduction for employers on contribution made: Employers who make contribution to the funds under the PRS on behalf of their employees, resident or non resident in Malaysia, are allowed to claim a tax deduction against their business income on the contribution made. The allowable tax deduction is, together with the contribution made to any other approved scheme (such as EPF), restricted to 19% of the employees remuneration. 18

21 ABOUT PRIVATE RETIREMENT SCHEMES (CONT D) 2.3 RISK FACTORS General risks of investing in funds under a PRS include: 1. Capital and returns not guaranteed: The fund is exposed to a variety of risks by nature of the investments it is engaged in. As such, the fund does not provide a guarantee on capital contributed nor does it guarantee a fixed rate return. 2. Inflation risk: Inflation risk refers to the loss in purchasing power of your investment returns due to a general increase in prices of goods and services. If the returns from your investments do not keep pace with the inflation rate, the real rate of returns from these investments will be impacted. 3. Risks associated with the default option: Under the default option, your contribution will be automatically switched (regardless of NAV movement trends) into the relevant core fund upon reaching the prescribed age. At the point of switching, the unit price may be lower than the price you paid when you contributed into the fund, and as such, you will incur losses. 4. Legal and regulatory risk: Changes in laws and regulations in the countries that the fund is invested in may impact the investments of the fund. Apart from this, there is also the risk that changes in laws/regulations/ guidelines relating to PRS could affect your PRS account or accessibility to the monies in the account. Where the fund participates in stock market-related investments, the following risks become key considerations: 1. Market risk: Market risk refers to the possibility that an investment will lose value because of a general decline in financial markets, due to economic, political and/or other factors, which will result in a decline in the fund s NAV. 2. Specific security risk: Prices of a particular security may fluctuate in response to the circumstances affecting individual companies. As such, adverse price movements of a particular security invested by the fund may adversely affect the fund s NAV and unit price. 3. Liquidity risk: Liquidity risk refers to the ease of liquidating an asset depending on the asset s volume traded in the market. If the fund holds assets that are illiquid, or are difficult to dispose of, the value of the fund will be negatively affected when it has to sell such assets at unfavourable prices. 4. Unlisted security risk: This risk relates to investments in securities which are not listed on a securities exchange, such as Shariah-compliant stocks of unlisted companies. Investment in unlisted securities may subject the fund to liquidity risks upon the disposal of these securities which may impact the value of the fund. 5. Risk associated with investments in Shariah-compliant warrants: The market price of Shariah-compliant warrants held by the fund may be impacted by changes in market price of the underlying securities as well as the exercise price and expiry date of the Shariah-compliant warrants. Any adverse movements in the market price of the Shariah-compliant warrants may impact the fund s NAV and unit price. Investment in sukuk brings forth the following specific investment risks: 1. Interest rate risk: Interest rate risk refers to the impact of interest rate changes on the valuation of sukuk and Islamic liquid assets. When interest rates rise, sukuk prices generally decline and this may lower the market value of the fund s investment in sukuk. The reverse applies when interest rates fall. The returns of the fund s investments in lslamic liquid assets move in tandem with interest rates. A decline in interest rates will lower the returns of the fund s investments in Islamic liquid assets. For example, when interest rates fall, Islamic deposit placements would be reinvested at lower interest rates and subsequently yield lower returns to the fund. 2. Credit risk: Credit risk relates to the creditworthiness of the issuer of the sukuk or Islamic liquid assets which is dependent on the issuer s ability to make timely payments of profit and/or principal. In the event that the issuer of a sukuk or Islamic liquid assets defaults in the payment of profit and/or principal, the value of the fund may be adversely affected. 19

22 ABOUT PRIVATE RETIREMENT SCHEMES (CONT D) In addition to the above, the following will also need to be considered: 1. Manager risk: This risk refers to the day-to-day management of the fund by the fund manager which will impact the performance of the fund. For example, investment decisions undertaken by the fund manager pertaining to asset allocation and stock selection which may not be in line with market movements, or nonconformance with regulations and internal policies and procedures, may adversely affect the performance of the fund. 2. Currency risk: If the fund invests in foreign currency or assets denominated in foreign currency, the fund may be exposed to currency fluctuation risks. If the currencies in which the investments are denominated depreciate against the local currency, the fund s NAV may be adversely affected and vice versa. To mitigate such risk, the fund may undertake hedging strategies. However, the fund would not benefit from any potential upside if currencies move in the opposite direction of the hedging strategy. 3. Country risk: Funds with foreign investments may be affected by changes in the economic and political climate, restriction on currency repatriation or other developments in the law or regulations of the countries in which the fund invests in. For example, the deteriorating economic condition of such countries may adversely affect the value of the investments undertaken by the fund in those affected countries. This in turn may cause the NAV of the fund or prices of units to fall. 4. Risk of non-compliance with Shariah requirements: This risk refers to the risk that the currently held Shariah-compliant equities in the fund may be reclassified as Shariah non-compliant in the periodic review of the equities by the SACSC, the Shariah Adviser or the Shariah boards of the relevant Islamic indices. If this occurs, the PRS Provider will take the necessary steps to dispose such equities. There may be opportunity loss to the fund due to the fund not being allowed to retain the excess capital gains derived from the disposal of the Shariah non-compliant equities. The value of the fund may also be adversely affected in the event of a disposal of Shariah non-compliant equities at a price lower than the investment cost. (Please refer to page 38 for Purification Process for the Funds.) Please refer to Chapter 3: Detailed Information on The Scheme and Funds for information on the fund specific risks and risk management strategies. 20

23 3 DETAILED INFORMATION ON THE SCHEME AND FUNDS 3.1 SCHEME INFORMATION The objective of the Scheme is to provide the public with a private retirement scheme for the purpose of building up long-term savings* for retirement. * You should note that the funds under PRS are neither capital guaranteed nor capital protected funds. Public Mutual PRS Shariah-based Series comprises the following funds: Core Funds Non-Core Fund Public Mutual PRS Islamic Growth Fund (PRS-IGRF) Public Mutual PRS Islamic Moderate Fund (PRS-IMDF) Public Mutual PRS Islamic Conservative Fund (PRS-ICVF) Public Mutual PRS Islamic Strategic Equity Fund (PRS-ISEQF) The following sections in this chapter lay out the investment objective, policy, strategy and other key features of the funds to assist you in making an informed judgement of the distinctive features of the funds. You are requested to read the fund profiles carefully before deciding to contribute. For information relating to making contributions into and withdrawals from the Scheme as well as other transactions, please refer to Chapter 5: Transaction Information. 3.2 FUND PROFILES PUBLIC MUTUAL PRS ISLAMIC GROWTH FUND (PRS-IGRF) Category of Fund Financial Year End Distribution Policy Fund Objective Core (Growth) 31 March Incidental The fund seeks long-term capital growth and to a lesser extent income. Note: Any material changes to the investment objective of the fund would require members approval. Member Profile Risk tolerant Preference for long-term capital growth With at least 15 years to retirement Age below 40 if contribute under the default option Investment Policy and Strategy Typical Asset Classes Shariah-compliant equity and equity-related securities, which include: Shariah-compliant index stocks, dividend stocks and growth stocks. Shariah-compliant stocks of IPO companies seeking a listing in Eligible Markets. Shariah-compliant unlisted equities. Shariah-compliant warrants (Up to 20% of NAV). Shariah-compliant collective investment schemes. Sukuk. Islamic liquid assets which include Islamic money market instruments, Islamic investment accounts and Islamic deposits. 21

24 DETAILED INFORMATION ON THE SCHEME AND FUNDS (CONT D) Asset Allocation Shariah-compliant equities Up to 70% of the fund s NAV Sukuk and Islamic liquid assets At least 30% of the fund s NAV If the outlook for equity market is unfavourable, the Shariah-compliant equity exposure may be reduced to below the range indicated above as a temporary defensive strategy. Foreign assets Up to 70% of the fund s NAV Location of Assets Malaysia China Singapore South Korea Thailand Taiwan Indonesia Hong Kong Philippines Any other permitted markets where the regulatory authority is an ordinary or associate member of the IOSCO. Investment Approach Shariah-compliant equities Bottom-up approach in stock selection process which relies on fundamental research where the financial health, industry prospects, management quality and past track records of companies are assessed. Sukuk and Islamic money market instruments The asset allocation between sukuk and Islamic money market instruments will depend on economic growth, interest rate trends and market liquidity conditions. Although the fund is actively managed, the frequency of its trading strategy will very much depend on market opportunities. Selected Performance Benchmark for PRS-IGRF The benchmarks of the fund is a composite benchmark index comprising: Percentage Index 35% FTSE Bursa Malaysia Hijrah Shariah Index 35% Customised index by S&P Dow Jones Indices, LLC based on Top 100 constituents by market capitalisation of the S&P Shariah BMI Asia Ex-Japan Index* 30% 3-Month IIMM rate The component stocks of the customised index of S&P Shariah BMI Asia Ex-Japan Index comprises Top 100 Shariahcompliant stocks from key regional markets including China, Hong Kong, Indonesia, South Korea, Malaysia, Philippines, Singapore, Taiwan and Thailand. This composite benchmark index represents an appropriate performance benchmark for PRS-IGRF as the fund generally invests up to 70% of its NAV in Shariah-compliant equities. * As indices which focus on Asian markets have a relatively high index weight for Japanese stocks, an index which excludes the Japan market is used as the fund s equity benchmark as it is more representative of the fund s investment strategy. 22

25 DETAILED INFORMATION ON THE SCHEME AND FUNDS (CONT D) Information on the benchmarks can be obtained from the following sources: Index FTSE Bursa Malaysia Hijrah Shariah Index Customised index by S&P Dow Jones Indices, LLC based on Top 100 constituents by market capitalisation of the S&P Shariah BMI Asia Ex-Japan Index 3-Month IIMM rate Source FTSE International Limited. S&P Dow Jones Indices LLC. Business sections of the daily newspapers. The performance of the fund and its benchmark is available on Public Mutual s website at The PRS-IGRF is not in any way sponsored, endorsed, sold or promoted by FTSE International Limited ( FTSE ) or by Bursa Malaysia Berhad ( BURSA MALAYSIA ) or by the London Stock Exchange Group companies (the LSEG ) and neither FTSE nor BURSA MALAYSIA nor LSEG makes any warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the FTSE BURSA MALAYSIA HIJRAH SHARIAH INDEX ( the Index ), and/or the figure at which the said Index stands at any particular time on any particular day or otherwise. The Index is compiled and calculated by FTSE. However, neither FTSE nor BURSA MALAYSIA nor LSEG shall be liable (whether in negligence or otherwise) to any person for any error in the Index and neither FTSE nor BURSA MALAYSIA nor LSEG shall be under any obligation to advise any person of any error therein. FTSE, FT-SE and Footsie are trade marks of LSEG and are used by FTSE under licence. BURSA MALAYSIA is a trade mark of BURSA MALAYSIA. The customised benchmark index for PRS-IGRF is a product of S&P Dow Jones Indices LLC ( SPDJI ), and has been licensed for use by Public Mutual. Standard & Poor s and S&P are registered trademarks of Standard & Poor s Financial Services LLC ( S&P ); Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC ( Dow Jones ); Standard & Poor s, S&P and Dow Jones are trademarks of the SPDJI; and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by Public Mutual. Public Mutual s PRS-IGRF is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the customised benchmark index for PRS-IGRF. 23

26 DETAILED INFORMATION ON THE SCHEME AND FUNDS (CONT D) PUBLIC MUTUAL PRS ISLAMIC MODERATE FUND (PRS-IMDF) Category of Fund Financial Year End Distribution Policy Fund Objective Core (Moderate) 31 March Incidental The fund seeks income and capital growth over the long-term through a balanced asset allocation approach. Note: Any material changes to the investment objective of the fund would require members approval. Member Profile Moderate risk tolerance Preference for capital growth and to a lesser extent income* With at least 10 years to retirement Age 40 to below 50 if contribute under the default option Investment Policy and Strategy * Distribution (if any) will be automatically reinvested into the fund. Typical Asset Classes Shariah-compliant equity and equity-related securities, which include: Shariah-compliant index stocks, dividend stocks and growth stocks. Shariah-compliant stocks of IPO companies seeking a listing in Eligible Markets. Shariah-compliant unlisted equities. Shariah-compliant warrants (Up to 10% of NAV). Shariah-compliant collective investment schemes. Sukuk. Islamic liquid assets which include Islamic money market instruments, Islamic investment accounts and Islamic deposits. Asset Allocation Shariah-compliant equities Up to 60% of the fund s NAV Sukuk and Islamic liquid assets At least 40% of the fund s NAV If the outlook for equity market is unfavourable, the Shariah-compliant equity exposure may be reduced to below the range indicated above as a temporary defensive strategy. Foreign assets Up to 60% of the fund s NAV Location of Assets Malaysia China Singapore South Korea Thailand Taiwan Indonesia Hong Kong Philippines Any other permitted markets where the regulatory authority is an ordinary or associate member of the IOSCO. Investment Approach Shariah-compliant equities Bottom-up approach in stock selection process which relies on fundamental research where the financial health, industry prospects, management quality and past track records of companies are assessed. Sukuk and Islamic money market instruments The asset allocation between sukuk and Islamic money market instruments will depend on economic growth, interest rate trends and market liquidity conditions. Although the fund is actively managed, the frequency of its trading strategy will very much depend on market opportunities. 24

27 DETAILED INFORMATION ON THE SCHEME AND FUNDS (CONT D) Selected Performance Benchmark for PRS-IMDF The benchmarks of the fund is a composite benchmark index comprising: Percentage Index 30% FTSE Bursa Malaysia Hijrah Shariah Index 30% Customised index by S&P Dow Jones Indices, LLC based on Top 100 constituents by market capitalisation of the S&P Shariah BMI Asia Ex-Japan Index* 40% 3-Month IIMM rate The component stocks of the customised index of S&P Shariah BMI Asia Ex-Japan Index comprises Top 100 Shariahcompliant stocks from key regional markets including China, Hong Kong, Indonesia, South Korea, Malaysia, Philippines, Singapore, Taiwan and Thailand. This composite benchmark index represents an appropriate performance benchmark for PRS-IMDF as the fund generally invests up to 60% of its NAV in Shariah-compliant equities. * As indices which focus on Asian markets have a relatively high index weight for Japanese stocks, an index which excludes the Japan market is used as the fund s equity benchmark as it is more representative of the fund s investment strategy. Information on the benchmarks can be obtained from the following sources: Index FTSE Bursa Malaysia Hijrah Shariah Index Customised index by S&P Dow Jones Indices, LLC based on Top 100 constituents by market capitalisation of the S&P Shariah BMI Asia Ex-Japan Index 3-Month IIMM rate Source FTSE International Limited. S&P Dow Jones Indices LLC. Business sections of the daily newspapers. The performance of the fund and its benchmark is available on Public Mutual s website at The PRS-IMDF is not in any way sponsored, endorsed, sold or promoted by FTSE International Limited ( FTSE ) or by Bursa Malaysia Berhad ( BURSA MALAYSIA ) or by the London Stock Exchange Group companies (the LSEG ) and neither FTSE nor BURSA MALAYSIA nor LSEG makes any warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the FTSE BURSA MALAYSIA HIJRAH SHARIAH INDEX ( the Index ), and/or the figure at which the said Index stands at any particular time on any particular day or otherwise. The Index is compiled and calculated by FTSE. However, neither FTSE nor BURSA MALAYSIA nor LSEG shall be liable (whether in negligence or otherwise) to any person for any error in the Index and neither FTSE nor BURSA MALAYSIA nor LSEG shall be under any obligation to advise any person of any error therein. FTSE, FT-SE and Footsie are trade marks of LSEG and are used by FTSE under licence. BURSA MALAYSIA is a trade mark of BURSA MALAYSIA. The customised benchmark index for PRS-IMDF is a product of S&P Dow Jones Indices LLC ( SPDJI ), and has been licensed for use by Public Mutual. Standard & Poor s and S&P are registered trademarks of Standard & Poor s Financial Services LLC ( S&P ); Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC ( Dow Jones ); Standard & Poor s, S&P and Dow Jones are trademarks of the SPDJI; and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by Public Mutual. Public Mutual s PRS-IMDF is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the customised benchmark index for PRS-IMDF. 25

28 DETAILED INFORMATION ON THE SCHEME AND FUNDS (CONT D) PUBLIC MUTUAL PRS ISLAMIC CONSERVATIVE FUND (PRS-ICVF) Category of Fund Financial Year End Distribution Policy Fund Objective Core (Conservative) 31 March Annual The fund seeks income consistent with capital preservation. Notes: This is neither a capital guaranteed nor a capital protected fund. Any material changes to the investment objective of the fund would require members approval. Member Profile Generally conservative and risk averse Preference for income* Age 50 and above if contribute under the default option Investment Policy and Strategy * Distribution (if any) will be automatically reinvested into the fund. Typical Asset Classes Sukuk which are rated at least BBB/P2 by RAM Holdings Berhad (RAM) or equivalent rating by Malaysian Rating Corporation Berhad (MARC) at the point of purchase. Islamic money market instruments which are issued by financial institutions that have a rating of at least BBB by RAM or equivalent rating by MARC at the point of purchase. Shariah-compliant equity and equity-related securities, which include: Shariah-compliant index stocks, defensive stocks and dividend stocks. Shariah-compliant stocks of IPO companies seeking a listing in Eligible Markets. Asset Allocation Shariah-compliant unlisted equities. Shariah-compliant collective investment schemes. Islamic investment accounts and Islamic deposits. Sukuk Islamic money market instruments, Islamic investment accounts and Islamic deposits Shariah-compliant equities 60% to 80% of the fund s NAV 20% to 40% of the fund s NAV (with at least 20% of NAV invested in Islamic money market instruments) Up to 20% of the fund s NAV If the outlook for sukuk market is unfavourable, the sukuk exposure may be reduced to below the range indicated above as a temporary defensive strategy. Location of Assets Investment Approach Foreign assets Malaysia Sukuk and Islamic money market instruments Shariah-compliant equities None The asset allocation between sukuk and Islamic money market instruments will depend on economic growth, interest rate trends and market liquidity conditions. Bottom-up approach in stock selection process which relies on fundamental research where the financial health, industry prospects, management quality and past track records of companies are assessed. Although the fund is actively managed, the frequency of its trading strategy will very much depend on market opportunities. 26

29 DETAILED INFORMATION ON THE SCHEME AND FUNDS (CONT D) Selected Performance Benchmark for PRS-ICVF The benchmark of the fund is an accumulation index based on the 12-Month GIA quoted by Bank Negara Malaysia (or any other replacement rate as may be quoted by Bank Negara Malaysia). The performance of the fund and its benchmark is available on Public Mutual s website at 27

30 DETAILED INFORMATION ON THE SCHEME AND FUNDS (CONT D) PUBLIC MUTUAL PRS ISLAMIC STRATEGIC EQUITY FUND (PRS-ISEQF) Category of Fund Financial Year End Distribution Policy Fund Objective Equity 31 March Incidental The fund seeks to achieve long-term capital growth. Note: Any material changes to the investment objective of the fund would require members approval. Member Profile Risk tolerant Preference for long-term capital growth Investment Policy and Strategy Typical Asset Classes Shariah-compliant equity and equity-related securities, which include: Shariah-compliant blue chip stocks, index stocks and growth stocks. Shariah-compliant stocks of IPO companies seeking a listing in Eligible Markets. Shariah-compliant unlisted equities. Shariah-compliant warrants. Shariah-compliant collective investment schemes. Sukuk. Islamic liquid assets which include Islamic money market instruments, Islamic investment accounts and Islamic deposits. Asset Allocation Shariah-compliant equities 75% to 98% of the fund s NAV The balance of the fund s NAV may be invested in sukuk and Islamic liquid assets. If the outlook for equity market is unfavourable, the Shariah-compliant equity exposure may be reduced to below the range indicated above as a temporary defensive strategy. Foreign assets Up to 98% of the fund s NAV Location of Assets China Singapore South Korea Indonesia Japan Thailand Taiwan Philippines Hong Kong Europe Malaysia United States of America Any other permitted markets where the regulatory authority is an ordinary or associate member of the IOSCO. Investment Approach Shariah-compliant equities Sukuk and Islamic money market instruments Bottom-up approach in stock selection process which relies on fundamental research where the financial health, industry prospects, management quality and past track records of companies are assessed. The asset allocation between sukuk and Islamic money market instruments will depend on economic growth, interest rate trends and market liquidity conditions. Although the fund is actively managed, the frequency of its trading strategy will very much depend on market opportunities. 28

31 DETAILED INFORMATION ON THE SCHEME AND FUNDS (CONT D) Selected Performance Benchmark for PRS-ISEQF The benchmarks of the fund is a composite benchmark index comprising: Percentage Index 50% FTSE Bursa Malaysia Hijrah Shariah Index 40% Customised index by S&P Dow Jones Indices, LLC based on Top 100 constituents by market capitalisation of the S&P Shariah BMI Asia Ex-Japan Index* 10% 3-Month IIMM rate The component stocks of the customised index of S&P Shariah BMI Asia Ex-Japan Index comprises Top 100 Shariahcompliant stocks from key regional markets including China, Hong Kong, Indonesia, South Korea, Malaysia, Philippines, Singapore, Taiwan and Thailand. This composite benchmark index represents an appropriate performance benchmark for PRS-ISEQF as the fund generally has an equity weight of 90% of its NAV over the long term. * As indices which focus on Asian markets have a relatively high index weight for Japanese stocks, an index which excludes the Japan market is used as the fund s equity benchmark as it is more representative of the fund s investment strategy. Information on the benchmarks can be obtained from the following sources: Index FTSE Bursa Malaysia Hijrah Shariah Index Customised index by S&P Dow Jones Indices, LLC based on Top 100 constituents by market capitalisation of the S&P Shariah BMI Asia Ex-Japan Index 3-Month IIMM rate Source FTSE International Limited. S&P Dow Jones Indices LLC. Business sections of the daily newspapers. The performance of the fund and its benchmark is available on Public Mutual s website at The PRS-ISEQF is not in any way sponsored, endorsed, sold or promoted by FTSE International Limited ( FTSE ) or by Bursa Malaysia Berhad ( BURSA MALAYSIA ) or by the London Stock Exchange Group companies (the LSEG ) and neither FTSE nor BURSA MALAYSIA nor LSEG makes any warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the FTSE BURSA MALAYSIA HIJRAH SHARIAH INDEX ( the Index ), and/or the figure at which the said Index stands at any particular time on any particular day or otherwise. The Index is compiled and calculated by FTSE. However, neither FTSE nor BURSA MALAYSIA nor LSEG shall be liable (whether in negligence or otherwise) to any person for any error in the Index and neither FTSE nor BURSA MALAYSIA nor LSEG shall be under any obligation to advise any person of any error therein. FTSE, FT-SE and Footsie are trade marks of LSEG and are used by FTSE under licence. BURSA MALAYSIA is a trade mark of BURSA MALAYSIA. The customised benchmark index for PRS-ISEQF is a product of S&P Dow Jones Indices LLC ( SPDJI ), and has been licensed for use by Public Mutual. Standard & Poor s and S&P are registered trademarks of Standard & Poor s Financial Services LLC ( S&P ); Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC ( Dow Jones ); Standard & Poor s, S&P and Dow Jones are trademarks of the SPDJI; and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by Public Mutual. Public Mutual s PRS-ISEQF is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the customised benchmark index for PRS-ISEQF. 29

32 DETAILED INFORMATION ON THE SCHEME AND FUNDS (CONT D) 3.3 INVESTMENT RISKS Specific Risks PRS-IGRF PRS-IMDF PRS-ICVF PRS-ISEQF Market risk Specific security risk Liquidity risk Currency risk Country risk Risk of noncompliance with Shariah requirements Market risk Specific security risk Interest rate risk Credit risk Liquidity risk Currency risk Country risk Risk of noncompliance with Shariah requirements Specific security risk Interest rate risk Credit risk Liquidity risk Risk of noncompliance with Shariah requirements Market risk Specific security risk Liquidity risk Currency risk Country risk Risk of noncompliance with Shariah requirements Note: Please refer to pages 19 to 20 for description of the above risks. Risk Management Strategies Asset allocation, liquidity management and diversification strategies employed are central to the efforts to manage the risks posed to the funds. There may be situations such as when a severe downturn in the equity markets is expected and liquidity risks are high, that the fund s Shariah-compliant equity exposure is reduced as a temporary defensive strategy. For funds with overseas investments, to mitigate risks arising from significant volatilities in times of adverse market movements, foreign currency exposure and foreign interest rate movements, the funds may employ hedging strategies utilising futures contracts, foreign exchange forward contracts and options (approved as Shariah-compliant by the Shariah Adviser of the fund). Participation in these instruments are for hedging purposes only. Investments in Shariah-compliant warrants will be assessed on ongoing basis as it can potentially increase the volatility of the funds returns. With regard to investments in sukuk and Islamic liquid assets, the risk management process focuses on managing the impact of changes in the interest rate trend and credit risk profile of the individual sukuk issuer. Investment strategies adopted include portfolio diversification and varying the asset allocation between the longtenured and short-tenured sukuk and Islamic money market instruments to adjust the risk and return characteristics of the fund. To manage credit risk, credit analysis is conducted and credit rating of financial institutions is monitored on an ongoing basis. The fund will focus on securities issued by companies with sound financial position whereby gearing ratio and interest cover ratio are within acceptable levels of the industry in which the issuer company operates. 3.4 PERMITTED INVESTMENTS The PRS Provider has absolute discretion, subject to the Deed, the investment policy for each of the funds and the requirements of the SC and other regulatory body, as to how the assets of the funds are invested. The funds Shariah-compliant investments are further subject to the list of Shariah-compliant instruments determined by the SACSC or SAC BNM, Shariah requirements as approved by the Shariah Adviser and the funds objective. PRS-IGRF, PRS-IMDF and PRS-ISEQF (a) The funds will invest in/utilise the following: i. Shariah-compliant equity securities and warrants of companies listed in Eligible Markets. The PRS Provider will invest in securities that are approved/verified by the Shariah Adviser; ii. Shariah-compliant stocks of IPO companies seeking a listing in Eligible Markets; 30

33 DETAILED INFORMATION ON THE SCHEME AND FUNDS (CONT D) iii. iv. Shariah-compliant unlisted equity securities whether or not approved for listing and quotation in Eligible Markets, which are offered directly by the company to the funds; Listed sukuk traded in Eligible Markets; v. Unlisted sukuk traded in Eligible Markets; vi. vii. viii. ix. Sovereign sukuk traded in Eligible Markets; Government Investment Issues (GII), Islamic Accepted Bills, Bank Negara Monetary Notes and any other Government approved and/or guaranteed Islamic issues; Islamic investment accounts, Islamic deposits and Islamic money market instruments with licensed domestic and foreign financial institutions; Units of other Shariah-compliant collective investment schemes; x. Futures contracts and options (approved as Shariah-compliant by the Shariah Adviser of the funds) traded on the futures and options market of an exchange company approved, or exempt futures and options market declared, by the Minister under the CMSA 2007 (for hedging purposes only); and xi. (b) Any other form of Shariah-compliant investments which is in line with the objective of the funds as may be agreed upon by the PRS Provider and the trustee from time to time. PRS-ISEQF may also utilise foreign exchange forward contracts (approved as Shariah-compliant by the Shariah Adviser of the fund). The funds may participate in lending of Shariah-compliant securities within the meaning of the SC Guidelines on Securities Borrowing and Lending when permitted by the SC and other relevant authorities. PRS-ICVF The fund will invest in the domestic market as follows: i. Shariah-compliant equity securities of companies listed in Bursa Securities. The PRS Provider will invest in securities that are approved/verified by the Shariah Adviser; ii. iii. iv. Shariah-compliant stocks of IPO companies seeking a listing in Bursa Securities; Shariah-compliant unlisted equity securities whether or not approved for listing and quotation in Bursa Securities, which are offered directly by the company to the fund; Listed sukuk traded in Eligible Markets; v. Unlisted sukuk traded in Eligible Markets; vi. vii. viii. ix. Government Investment Issues (GII), Islamic Accepted Bills, Bank Negara Monetary Notes and any other Government approved and/or guaranteed Islamic issues; Islamic investment accounts, Islamic deposits and Islamic money market instruments with licensed domestic financial institutions; Units of other Shariah-compliant collective investment schemes; and Any other form of Shariah-compliant investments which is in line with the objective of the fund as may be agreed upon by the PRS Provider and the trustee from time to time. The fund may participate in lending of Shariah-compliant securities within the meaning of the SC Guidelines on Securities Borrowing and Lending when permitted by the SC and other relevant authorities. 31

34 DETAILED INFORMATION ON THE SCHEME AND FUNDS (CONT D) 3.5 INVESTMENT RESTRICTIONS The funds are also subject to the following investment restrictions in the course of execution of their investment policies and strategies: PRS-IGRF, PRS-IMDF and PRS-ISEQF (i) Investment Spread Limits Investment Value of investments in Shariah-compliant ordinary shares issued by any single issuer Value of investments in transferable Shariah-compliant securities and Islamic money market instruments issued by any single issuer Value of placement in Islamic investment accounts and/or Islamic deposits with any single institution For investments in Islamic derivatives:- (i) exposure to underlying assets; (ii) value of OTC Islamic derivative transaction with any single counter-party Value of investments in Islamic structured products issued by a single counter-party Aggregate value of investments in transferable Shariah-compliant securities, Islamic money market instruments, Islamic investment accounts and/or Islamic deposits, OTC Islamic derivatives and Islamic structured products issued by or placed with, as the case may be, any single issuer/institution Value of investments in units of any Shariah-compliant collective investment scheme (except for investments by core funds) Value of investments in transferable Shariah-compliant securities and Islamic money market instruments issued by any group of companies Limits (% of the respective fund s NAV) 10% 15% 20% spread limits stipulated in this section 10% 15% 25% 20% 20% (ii) Investment Concentration Limits Investment Investments in transferable Shariah-compliant securities (other than Islamic debentures) Investments in Islamic debentures Investments in Islamic money market instruments Investments in Shariah-compliant collective investment schemes (except for investments by core funds) Limits 10% of the Shariah-compliant securities issued by any single issuer. 20% of the Islamic debentures issued by any single issuer. 10% of the instruments issued by any single issuer. Note: This limit does not apply to Islamic money market instruments that do not have pre-determined issue size. 25% of the units in any one Shariah-compliant collective investment scheme. Note: Transferable Shariah-compliant securities refer to Shariah-compliant equities, Islamic debentures and Shariahcompliant warrants. 32

35 DETAILED INFORMATION ON THE SCHEME AND FUNDS (CONT D) (iii) Exposure Limits Limits Investment (% of the respective fund s NAV) Value of investments in unlisted Shariah-compliant securities 10% Note: This exposure limit does not apply to:- a) Shariah-compliant equities not listed or quoted on a stock exchange but have been approved by the relevant authority for such listing and quotation, and are offered directly to the fund by the issuer; b) Islamic debentures traded on an organised OTC market; and c) Islamic structured products. Investment of each of the core fund into one or more Shariah-compliant collective investment schemes of the same PRS Provider (target funds) Value of holdings in foreign investments (i) PRS-IGRF (ii) PRS-IMDF (iii) PRS-ISEQF Exposure from Islamic derivatives position Permitted for a 5 year period from the launch of the Scheme or upon reaching RM200 million in NAV (whichever is earlier), provided: a) the value of the core fund s investment in any of the target fund(s) must not exceed 40% of the core fund s NAV; and b) the investment objective of the target fund(s) is similar to the core fund. 70% 60% 98% NAV of the fund at all times. PRS-ICVF (i) Investment Spread Limits Investment 33 Limits (% of the fund s NAV) Value of investments in Islamic debentures issued by any single issuer 20% Note: This limit may be increased to 30% if the Islamic debentures are rated by any domestic or global rating agency to be of the best quality and offer highest safety for timely payment of profits and principal. Value of investments in Shariah-compliant ordinary shares issued by any 10% single issuer

36 DETAILED INFORMATION ON THE SCHEME AND FUNDS (CONT D) Investment Value of placement in Islamic investment accounts and/or Islamic deposits with any single institution For investments in Islamic derivatives:- (i) exposure to underlying assets; (ii) value of OTC Islamic derivative transaction with any single counter-party Aggregate value of investments in transferable Shariah-compliant securities, Islamic money market instruments, Islamic investment accounts and/or Islamic deposits, OTC Islamic derivatives and Islamic structured products issued by or placed with, as the case may be, any single issuer/ institution Value of investments in Islamic debentures issued by any group of companies Limits (% of the fund s NAV) 20% spread limits stipulated in this section 10% 25% Note: This limit may be increased to 30% if the single issuer limit for value of investment in Islamic debentures is increased to 30%. 30% (ii) Investment Concentration Limits Investment Investments in Islamic debentures Investments in transferable Shariah-compliant securities (other than Islamic debentures) Investments in Islamic money market instruments Limits 20% of the Islamic debentures issued by any single issuer. 10% of the Shariah-compliant securities issued by any single issuer. 10% of the instruments issued by any single issuer. Note: This limit does not apply to Islamic money market instruments that do not have pre-determined issue size. (iii) Exposure Limits Investment Limits (% of the fund s NAV) Value of investments in unlisted Shariah-compliant securities 10% Note: This exposure limit does not apply to:- a) Shariah-compliant equities not listed or quoted on a stock exchange but have been approved by the relevant authority for such listing and quotation, and are offered directly to the fund by the issuer; and b) Islamic debentures traded on an organised OTC market. 34

37 DETAILED INFORMATION ON THE SCHEME AND FUNDS (CONT D) Investment Investment of the core fund into one or more Shariah-compliant collective investment schemes of the same PRS Provider (target funds) Exposure from Islamic derivatives position Limits (% of the fund s NAV) Permitted for a 5 year period from the launch of the Scheme or upon reaching RM200 million in NAV (whichever is earlier), provided: a) the value of the core fund s investment in any of the target fund(s) must not exceed 40% of the core fund s NAV; and b) the investment objective of the target fund(s) is similar to the core fund. NAV of the fund at all times. In addition to the above, PRS-ICVF must comply with the following restrictions imposed by the SC: Investments in Islamic debentures/sukuk must be rated at least BBB3/P2 by RAM (or equivalent rating by MARC). However, Islamic debentures/sukuk which are rated below BBB3/P2 and/or are unrated, may comprise up to 5% of PRS-ICVF s NAV (the 5% limit). In the event the 5% limit is exceeded, whether as a result of: (i) (ii) (iii) a downgrade of any Islamic debenture/sukuk to below BBB3/P2; an increase in the aggregate value of Islamic debentures/sukuk which are rated below BBB3/P2 and/or are unrated; or a decrease in the NAV of PRS-ICVF, the PRS Provider must reduce such investments to comply with the 5% limit unless in the opinion of the trustee, the disposal of such investments is not in the best interest of members. The above limits and restrictions shall be complied with at all times based on the most up-to-date value of the respective funds, the value of their investments and instruments. However, a 5 per cent allowance in excess of any limits or restrictions may be permitted where the limit or restriction is breached through the appreciation or depreciation in value of the fund s investments or instruments, or as a result of redemption of units or payment made from the fund. The PRS Provider should, within a reasonable period of not more than 3 months from the date of the breach, take all necessary steps and actions to rectify the breach. Such limits and restrictions, however, do not apply to securities that are issued or guaranteed by the Government or Bank Negara Malaysia. 3.6 VALUATION OF PERMITTED INVESTMENTS Listed Shariah-compliant equities, warrants and options (approved as Shariah-compliant by the Shariah Adviser of the fund) valuation is based on market price of the respective exchanges. If no market price is available or valuation based on market price does not represent the fair value of investments, the securities will be valued at fair value as determined in good faith by the PRS Provider, based on the methods or bases approved by the trustee after appropriate technical consultation. Shariah-compliant unlisted equities fair valuations which are based on methods that are acceptable to the PRS Provider, verified by the auditor and approved by the trustee. Listed and unlisted sukuk for listed sukuk, the last traded prices quoted on a recognised exchange will be used. If no market price is available or valuation based on market price does not represent the fair value of the sukuk, the sukuk will be valued at fair value as determined in good faith by the PRS Provider, based on the methods or bases approved by the trustee after appropriate technical consultation. 35

38 DETAILED INFORMATION ON THE SCHEME AND FUNDS (CONT D) In the case of unlisted sukuk denominated in RM, valuations are carried out on a daily basis using fair value prices quoted by a Bond Pricing Agency (BPA) registered with the SC. If the PRS Provider is of the view that the price quoted by the BPA for a specific sukuk differs from the market price by more than 20 basis points, the PRS Provider may use the market price provided that the PRS Provider adheres to the requirements stipulated by the SC. Market price for sukuk are derived from market quotations obtained from the panel of at least three active financial institutions that are governed by the Financial Services Act 2013 and/or Islamic Financial Services Act 2013 (FSA/IFSA). Other unlisted sukuk which include foreign unlisted sukuk are valued daily based on fair value by reference to the average indicative yield quoted by at least three independent and established institutions. Islamic commercial papers Islamic commercial papers are valued at purchase yields with profit accrued daily. Islamic money market instruments Islamic money market instruments which include negotiable Islamic debt certificate are valued at market yields based on the remaining days to maturity. Islamic investment accounts and Islamic deposits the value of such investments shall be determined on a daily basis by reference to their nominal values and the accrued profit thereon for the relevant period. Units in other Shariah-compliant collective investment schemes the last published repurchase price per unit or if not available, the units will be valued at fair value as determined in good faith by the PRS Provider, based on methods or bases approved by the trustee after appropriate technical consultation. Foreign exchange forward contracts (approved as Shariah-compliant by the Shariah Adviser of the fund) all foreign exchange forward contracts (approved as Shariah-compliant by the Shariah Adviser of the fund) are markedto-market daily and valued at fair value using forward rate of the remaining tenure to maturity. Futures contracts (approved as Shariah-compliant by the Shariah Adviser of the fund) all futures contracts (approved as Shariah-compliant by the Shariah Adviser of the fund) are marked-to-market at the end of each trading day. Any gains or losses are immediately reflected upon marking to market. Suspended Shariah-compliant securities will be valued at their suspended price unless there is conclusive evidence to indicate that the value of such stocks have gone below the suspended price, whereupon their value will be ascertained in a manner as agreed upon by the PRS Provider and trustee. All Shariah-compliant foreign securities and assets are converted into RM based on the bid exchange rate quoted by Thomson Reuters/ Bloomberg at United Kingdom time 4:00 p.m. the same day. The valuation of PRS-ICVF for each Business Day is carried out at the end of the day immediate upon closing of Bursa Securities and is published on the next Business Day. For PRS-IGRF, PRS-IMDF and PRS-ISEQF, the valuation of the NAV will be conducted after the close of business of Bursa Securities for the relevant day. As certain foreign markets in which the funds may invest in have yet to close due to different time zones of these countries, the valuation point may be extended to 5:00 p.m. the next business day of Bursa Malaysia (or any other such time as may be permitted by the relevant authorities from time to time) in which the PRS Provider is open for business. For example, Monday s price will be available on Wednesday. You may check for the current NAV/price of the funds by visiting our website at For PRS-IGRF, PRS-IMDF and PRS-ISEQF, the PRS Provider may declare certain Business Days to be non-business Days, although Bursa Securities is open for business, if one or more of the foreign markets in which the fund invests therein are closed for business. This is to ensure that you will be given a fair valuation of the fund at all times, be it when purchasing or redeeming units of the fund. A notice on non-business Days will be posted on Public Mutual s website. 36

39 DETAILED INFORMATION ON THE SCHEME AND FUNDS (CONT D) 3.7 POLICY ON GEARING Save and except where permitted or approved by the SC, the funds are prohibited from gearing or borrowing cash or other assets (including the borrowing of securities) to finance the purchase of investments. 3.8 SHARIAH SCREENING PROCESS FOR THE FUNDS The fund s investment in Shariah-compliant unlisted equities in the domestic and foreign markets will be selected in accordance with the equities classified as Shariah-compliant by the Shariah Adviser. For Shariah-compliant equities to be reviewed by the Shariah Adviser, the fund manager will first identify the equities which fulfil their investment criteria. All the relevant documents with the latest information pertaining to the business activities, financial statements and other related information will be submitted to the Shariah Adviser for Shariah stock screening process which involves both quantitative and qualitative analysis. For domestic Shariah-compliant listed equities, reference is made to the list of Shariah-compliant equities determined by SACSC on a half-yearly basis. For the fund s investment in unlisted equities in the domestic market, the Shariah Adviser applies the two-tier quantitative approach based on the business activity and financial ratio benchmarks in determining the Shariah status of the equities. For business activity benchmarks, the contribution of Shariah noncompliant activities such as conventional banking and insurance, gambling, liquor, pork and non-halal food and beverage, tobacco, interest income, dividends from Shariah non-compliance investments, Shariah non-compliant entertainments and other related activities deemed non-compliant according to Shariah, to the group revenue or group profit before taxation of the company must be less than 5%. For the contribution of share trading, stockbroking business, and rental received from Shariah non-compliant activities to the group revenue or group profit before taxation of the company must be less than 20%. For financial ratio benchmark, the Shariah Adviser will determine if the financial ratios (i.e. non-compliant debt and cash ratio is less than 33%) of the equities, comply with the financial thresholds. In addition to the above two-tier quantitative criteria, the Shariah Adviser also takes into account the qualitative aspect which involves public perception or image of the company s activities from the perspective of Islamic teaching. For foreign Shariah-compliant listed equities, reference is made to the list of the approved Islamic indices on a monthly basis. For the fund s investments in listed and unlisted equities in the foreign markets which are not within the list of the approved Islamic indices, the Shariah Adviser applies the two-tier approach which applies the sector-based and accounting-based screens, in determining the Shariah status of the equities. For sector-based screens, core business activities related to advertising and media, alcohol, cloning, conventional banking and insurance, gambling, pork, pornography, tobacco and trading of gold and silver as cash on deferred basis will not be appropriate for Islamic investment purpose. For accounting-based screen, the Shariah Adviser will determine if the conventional debt ratio, conventional cash ratio, account receivable ratio and non-permissible income ratio of the company s financial position comply with the financial thresholds as approved by the Islamic indices subscribed by the funds. These benchmarks may vary in accordance with the development of Islamic capital markets and the jurisdiction of the Islamic indices providers that are being referred to. Should any of the calculation fail to satisfy the financial benchmark, the Shariah Adviser will not accord Shariah-compliant status for the equities. To ensure strict compliance with Shariah requirements, foreign Shariah-compliant equities which are approved by the Shariah Adviser will be reviewed twice yearly. The fund s investment in domestic sukuk will be selected from the list of sukuk readily available at the SC website. The fund s investments in foreign sukuk will be selected after consultation with the Shariah Adviser. To ensure strict compliance with Shariah requirements, the Shariah Adviser will review the information memorandum or the prospectus of the foreign sukuk for details regarding the Shariah approvals and fatwa certifying such sukuk. The Shariah Adviser will review the structure, contracts, assets and terms for the foreign sukuk issuance to ascertain if they comply with Shariah principles. 37

40 DETAILED INFORMATION ON THE SCHEME AND FUNDS (CONT D) 3.9 PURIFICATION PROCESS FOR THE FUNDS Shariah-compliant equities which are reclassified to be Shariah non-compliant upon review of the equities by the SACSC or the Shariah Adviser will result in the Shariah non-compliant equities being disposed off. For the purpose of purification, any capital gain arising from the disposal of the Shariah non-compliant equities made at a market price/valuation, at the time of the announcement/review day can be kept. However, gains derived from the disposal of the Shariah non-compliant equities after the announcement/review day at a market price/valuation that is above the closing price/valuation on the announcement/review day should be deposited into a separate account which is segregated from the funds account. The funds may channel such tainted income to baitumal and/or charitable bodies as may be advised by the Shariah Adviser. The funds may also at its discretion distribute the tainted income to the members as soon as practically possible which shall be advised by the Shariah Adviser. Should such income be distributed to members, the PRS Provider will inform members that it is the members obligation to purify it in accordance to Shariah principles upon receiving it from the funds ZAKAT FOR THE FUNDS The funds do not pay zakat on behalf of Muslim individuals and Islamic legal entities who are members of the funds since doing so would not satisfy completely their zakat obligations. Such members are thus required to pay on their own behalf. 38

41 4 FEES, CHARGES AND EXPENSES 4.1 CHARGES IMPOSED ON PURCHASE AND REDEMPTION OF UNITS Charges Imposed by PRS Provider Purchase of units through PRCs, IPA and the PRS Provider. Sales charge per unit The PRS Provider may at its discretion charge a lower sales charge based on criterion as may be determined from time to time. Please refer to page 42 for illustration on computation of sales charge. Up to 3.0% of NAV per unit. Redemption charge per unit Please refer to page 43 for illustration on computation of redemption charge. Nil Switching fee Switching between funds in this Scheme and between funds in another PRS managed by Public Mutual. Nil Transfer fee (to another PRS provider) Administration fee is charged for each transfer request. RM25 Sales charge and redemption charge (if any) that are to be levied on the purchase and redemption of units are computed based on the NAV per unit of the respective fund that has not been rounded up. Bank charges, courier charges and any other indirect charges as a result of contribution, redemption, withdrawal and/or transfer transactions will be borne by you. Charges Imposed by PPA PPA account opening fee The account opening fee will be deducted from the first contribution made. RM10 (one off). PPA annual fee The PPA annual fee is not payable for the year the account is opened and not payable for the year(s) where no contributions are made. RM8 per annum. 39

42 FEES, CHARGES AND EXPENSES (CONT D) 4.2 FEES AND EXPENSES OF THE FUNDS Operating a fund involves a variety of expenses for portfolio management, the PRS Provider management fee, PPA administration fee, fees for trustee, foreign custodian charges, auditor s fee, tax agent s fee and other administrative charges incurred in the administration of the fund. These costs are paid out of the fund s assets. PRS-IGRF PRS-IMDF PRS-ICVF PRS-ISEQF 1.50% per annum of the NAV. 1.25% per annum of the NAV. 1.0% per annum of the NAV. 1.60% per annum of the NAV. Management fee Trustee fee 0.04% per annum of NAV, subject to a maximum fee of RM600,000 per annum. 0.04% per annum of NAV, subject to a maximum fee of RM600,000 per annum. 0.04% per annum of NAV, subject to a maximum fee of RM300,000 per annum. 0.04% per annum of NAV, subject to a maximum fee of RM600,000 per annum. PPA administration fee 0.04% per annum of the NAV. The PRS Provider management fee and trustee fee is calculated and accrued daily, and payable monthly to the PRS Provider and trustee respectively. The PPA administration fee is calculated and accrued daily, and payable monthly to the PPA. Illustration: Assuming the total NAV of PRS-IGRF (before deducting management fee, trustee fee and PPA administration fee) is RM100,000, The management fee, trustee fee and PPA administration fee that will be accrued for that day would be: Management fee : (RM100,000, * 1.50%) / 365 = RM4, Trustee fee : (RM100,000, * 0.04%) / 365 = RM PPA administration fee : (RM100,000, * 0.04%) / 365 = RM Information on fees and charges of other PRS may be obtained from the PPA website, You will be notified of any increase in fees and/or charges via interim or annual reports of the fund. The notification will be sent at least 3 months prior to the effective date of such higher fees and/or charges. Note: All the above fees and charges are subject to GST which are payable by you. 4.3 POLICY ON STOCKBROKING REBATES AND SOFT COMMISSIONS The PRS Provider does not receive any form of rebates from any broker/dealer. The PRS Provider may receive goods or services which include research materials, data and quotation services and investment related publications by way of soft commissions provided they are of demonstrable benefit to the funds and members. There are fees and charges involved and members are advised to consider them before contributing to the Scheme. 40

43 5 TRANSACTION INFORMATION 5.1 DETERMINATION OF PRICES Valuation Point Valuation of PRS-IGRF, PRS-IMDF and PRS-ISEQF will be conducted after the close of business of Bursa Securities for the relevant day. As certain foreign markets in which the funds may invest in have yet to close due to the different time zones of these countries, the valuation point may be extended to 5:00 p.m. the next Business Day of Bursa Malaysia (or any other such time as may be permitted by the relevant authorities from time to time) in which the PRS Provider is open for business. The valuation of PRS-ICVF for each Business Day is carried out at the end of the day immediate upon closing of the Bursa Securities. NAV per Unit The NAV per unit is obtained by dividing the NAV of the fund by the number of units in issue. Illustration: Total NAV (RM) 49,000,000 = UIC (units) 98,000,000 NAV per unit (RM) Single Pricing Purchase and redemption of units are quoted and transacted at a single price, i.e. at the NAV per unit of the fund. Sales charge and redemption charge (if any) are computed and charged separately, and are not incorporated in the quoted prices of the fund. Forward Pricing Both the purchase and redemption transactions are traded at prices next determined. A request issued by you to purchase or redeem units of the fund will be carried out at a price as at the next valuation point after the application is received and accepted by the PRS Provider. In circumstances where the prior authorisation of the PPA is required, any redemption of units will be at a price that is the NAV of the fund as at the next valuation point after the PPA s authorisation is received by the PRS Provider. Contributions banked in over the counter through Public Bank branches on any Business Day will be processed based on the price determined for the same Business Day. Before or at 4:00 p.m. Processed based on the price determined for the same Business Day. Contributions via electronic channels After 4:00 p.m. Processed based on the price determined for the next Business Day. Any contribution and transaction requests made on a non-business Day will be treated as contributions or transaction requests made on the following Business Day. Incorrect Pricing In the event of any incorrect pricing of units of the funds, the PRS Provider shall take immediate remedial action where that incorrect pricing (i) (ii) is equal or more than 0.5% of the NAV per unit; and results in a sum total of RM10.00 or more to be reimbursed to the affected member for each purchase or redemption transaction. Subject to any regulatory requirements, the PRS Provider shall have the right to amend, vary or revise the abovesaid limits or threshold from time to time. 41

44 TRANSACTION INFORMATION (CONT D) 5.2 COMPUTATION OF PRICES Purchasing Units of the Fund Illustration: Contribution NAV per unit Sales charge : RM10,000 : RM : 3.0% of NAV per unit Sales Charge Incurred = Contribution x Sales Charge (%) [1 + Sales Charge (%)] + [Sales Charge (%) x GST (%)] = RM10,000 x 3.0% [ ( %) + (3.0% x 6%) ] RM Goods and Services Tax (GST) = Sales Charge Incurred x GST (%) = RM X 6% RM17.45 Net Contribution Contribution Less: Sales Charge Incurred Less: GST RM10,000 (RM290.75) (RM17.45) RM9, = Contribution Units Credited to Your Account NAV per unit = RM9, RM , units DO NOT PAY CASH FOR YOUR CONTRIBUTION PRCs AND STAFF OF PUBLIC MUTUAL ARE NOT AUTHORISED TO COLLECT CONTRIBUTION IN CASH UNDER ANY CIRCUMSTANCES WHATSOEVER. Public Mutual will not be liable for any loss incurred should you give cash to our PRCs or staff. DO NOT PAY CASH TO A PRC OR STAFF OF PUBLIC MUTUAL. BNM/21/ DO NOT ISSUE A CHEQUE IN THE NAME OF A PRC OR STAFF OF PUBLIC MUTUAL. 42

45 TRANSACTION INFORMATION (CONT D) Redeeming Units of the Fund Illustration: Units redeemed : 20,000 units NAV per unit : RM Amount Redeemed = Units redeemed x NAV per unit = 20,000 units x RM RM10,000 Redemption Charge Incurred = Redemption charge (%) x NAV x Units per unit redeemed = 0% x RM x 20,000 units Nil Total Redemption Proceeds Received by You = Amount redeemed Redemption charge incurred = RM10,000 0 RM10,000 Note: All the above fees and charges are subject to GST which are payable by you. 5.3 WHERE TO PURCHASE OR REDEEM UNITS OF THE FUNDS PRCs and corporate representatives who are registered with FIMM Public Mutual Online (PMO) Public Mutual Customer Service Centres Please refer to pages 72 to 76 for the Directory of Public Mutual Branch Offices and Customer Services Centres, Agency Offices and appointed IPA(s). 5.4 HOW TO PURCHASE UNITS OF THE FUNDS Before investing, it is important that you read the Disclosure Document and product highlights sheet of the funds carefully, and seek further clarification on any matter that may concern you. 43

46 TRANSACTION INFORMATION (CONT D) Contribution to the Funds You can select to contribute under the default option or non-default option as explained below: Your contribution under the default option will be automatically allocated to the core fund that corresponds to the age group as specified below: Default option Core Funds Age Group* PRS-IGRF Age below 40 PRS-IMDF Age 40 to below 50 PRS-ICVF Age 50 and above * The age group may be subject to changes as may be determined by the relevant authorities from time to time. If you make your first contribution to the Scheme a month before you reach the age of 40 or 50, as the case may be, your contribution will be allocated to PRS-IMDF or PRS-ICVF as the case may be. Unless otherwise instructed, your contribution will be automatically switched (without charge) into the relevant core fund, before the end of the next calendar month from the day you attain the age as specified in the table above. You can actively select one or more funds regardless of your age. Vested units are maintained in two separate sub-accounts by the PRS Provider:- Nondefault option Where an employer makes a contribution on behalf of an employee whether subject to a vesting schedule or otherwise: - The choice of funds under the Scheme (including the right to switch to another fund) is to be made by the employee. - If an employee does not make a fund selection, the default option applies. i. Sub-account A - holds 70% of all contributions made, reflected in units; and ii. Sub-account B - holds 30% of all contributions made, reflected in units. Opening an Account Minimum initial contribution for each fund Lump sum contribution : RM1,000** DDI : RM100 If you are a PMO subscriber, you can register your PRS account opening via PMO and make your contributions online. If you are not an existing PMO subscriber and would like to be one, submit the PMO application form personally at any Public Mutual or Public Bank branch offices or Public Mutual Head Office. Otherwise: Complete the PRS registration for account opening form and fund application form and submit together with the contribution amount made out in a cheque to any of the Public Bank branches. For first time investor of Public Mutual, you are also required to complete the new investor form. Adding Regularly to Your Account Minimum additional contribution for each fund Lump sum contribution : RM100** DDI : RM100 Additional contributions can be executed via: (a) PMO. (b) Direct debit authorisation with banks. (c) Depositing your cheque into the collection accounts maintained at Public Bank. Note: ** A lower amount may be accepted if contributions to the fund(s) are made through employers. A minimum amount of RM100 for each fund will be accepted for transfers from other PRS providers. The PRS Provider may reduce the minimum initial and additional contribution amount from time to time. 44

47 TRANSACTION INFORMATION (CONT D) How You Should Write Your Cheque Your cheques for contribution are to be issued in the following manner: Cheque must be made payable to: Initial Contribution Public Mutual Berhad - New NRIC No. Additional Contribution Public Mutual Berhad - Account No. of Targeted Fund or Public Mutual Berhad - New NRIC No. Please write down your name, new NRIC/passport number and telephone number at the back of the cheque. Under the Deed, the PRS Provider is given the exclusive right to effect the issue of units for the account of the fund and has absolute discretion to accept or reject in whole or in part any application for units. DO NOT PAY CASH FOR YOUR CONTRIBUTION PRCs AND STAFF OF PUBLIC MUTUAL ARE NOT AUTHORISED TO COLLECT CONTRIBUTION IN CASH UNDER ANY CIRCUMSTANCES WHATSOEVER. Public Mutual will not be liable for any loss incurred should you give cash to our PRCs or staff. DO NOT PAY CASH TO A PRC OR STAFF OF PUBLIC MUTUAL. BNM/21/ DO NOT ISSUE A CHEQUE IN THE NAME OF A PRC OR STAFF OF PUBLIC MUTUAL. 5.5 HOW TO WITHDRAW UNITS OF THE FUNDS Minimum units for withdrawal: 1,000 units. Withdrawal upon retirement Withdrawals from the fund(s) can be made in part or in full. You can execute your withdrawal request by completing and submitting the withdrawal request form on any Business Day to your nearest Public Mutual branch office or Public Mutual Head Office. Your withdrawal proceeds will be paid within 10 days from our receipt of your request. 45

48 TRANSACTION INFORMATION (CONT D) Pre-retirement withdrawal Pre-retirement withdrawals can be made for the following reasons: i. Death of member (withdrawals must be made in full); ii. Permanent departure of a member from Malaysia (withdrawals must be made in full); or iii. Withdrawal of accrued benefits from sub-account B (withdrawals can be made in part or in full). Withdrawals from sub-account B can be requested (from one or multiple funds under the Scheme) once per calendar year, provided that no withdrawal can be made from the Scheme where you have been a member of the Scheme for less than a year. First pre-retirement withdrawal request from sub-account B can be made only one year after your first contribution to any fund under the Scheme. You can execute your withdrawal request by completing and submitting the withdrawal request form to your nearest Public Mutual branch office or Public Mutual Head Office. Your withdrawal proceeds will be paid within 10 days from our receipt of your request. If the pre-retirement withdrawal is due to death of a member, the request form will be submitted to PPA. Upon receiving the authorisation from the PPA, the request will be processed and proceeds paid to the trustee, executor or administrator of the deceased member within 10 days. A tax penalty of 8% will be deducted from the pre-retirement withdrawal proceeds. The tax penalty does not apply to pre-retirement withdrawals due to death or permanent departure from Malaysia. Members who hold conditionally vested units are not permitted to request for a withdrawal of such units. 5.6 HOW TO SWITCH UNITS BETWEEN FUNDS Minimum units for switching: 1,000 units. Switching between funds within the Scheme and funds under the Public Mutual PRS Conventional Series can be requested via one application to Public Mutual, once per calendar year. First switching request can be made only one year after your first contribution to any Public Mutual PRS fund. You can execute your switching request via PMO or by completing and submitting the switching request form to your nearest Public Mutual branch office or Public Mutual Head Office. The PRS Provider has the discretion to vary the terms and conditions of switching from time to time. Please contact our Customer Service Hotline for the latest terms and conditions on switching. 5.7 HOW TO TRANSFER VESTED UNITS TO ANOTHER PRS PROVIDER Transfer of vested units to another PRS provider can be requested (from one or multiple funds under the Scheme) once per calendar year provided: i. you have been a member under the Scheme (whether via member contribution or employer contribution) for at least one year; and ii. the transfer of accrued benefits are (a) from one or more funds to one or more funds of another PRS provider on a one-to-one equivalence; or (b) from multiple funds into one fund. (Transfer of accrued benefits from one fund to multiple funds of another PRS provider is not permitted) First transfer request from any fund under the Scheme can be made only one year after your first contribution to any fund under the Scheme. You can execute your transfer request by completing and submitting the transfer request form to the transferee PRS Provider who will then forward the request form to PPA. Upon receiving the completed transfer form from the PPA, the PRS Provider will process and remit the net transfer proceeds to the transferee PRS provider within 5 Business Days. Members who hold conditionally vested units are not permitted to request for a transfer of such units to another PRS provider. 46

49 TRANSACTION INFORMATION (CONT D) 5.8 MINIMUM ACCOUNT BALANCE (applicable for post-retirement only) Minimum balance of 1,000 units must be maintained at all times to stay invested with the fund. If partial redemption (through withdrawal or switching) of units result in less than 1,000 units being held in your account with the fund, the PRS Provider may redeem the entire account. 5.9 COOLING-OFF RIGHT Applicable for first time contributors to a PRS. Submit request to your nearest Public Mutual branch office or Public Mutual Head Office within 6 Business Days from the date of receipt of the application form and payment by Public Mutual. Full refund will be paid within 10 days from the date the PRS Provider receives the cooling-off right request and authorisation from the PPA. The refund for every unit held will be the sum of the price of a unit on the day the units were purchased and the sales charge imposed (and GST) on the day the units were purchased. Once you have exercised the cooling-off right, the cooling-off right is no longer available for any subsequent contributions to that PRS or other PRS. Staff of the PRS Provider and persons registered to deal in PRS are not entitled to the cooling-off right DISTRIBUTION Declaration Distribution, if any, is declared at the end of each financial year, or for any other specified period. Distribution(s) paid is subject to availability of realised income and/or realised gains. Reinvestment Distribution (if any) will be automatically reinvested. Distribution will be reinvested at NAV per unit, computed at the close of the first Business Day following the distribution declaration date. No sales charge will be imposed on distribution reinvestments. Unit prices and distributions payable, if any, may go down as well as up UNCLAIMED MONIES Any monies payable to you which remain unclaimed after such period (currently being 1 year) will be paid to Register of Unclaimed Monies by the PRS Provider in accordance with the provisions of the Unclaimed Moneys Act 1965 and (Amendment) If you have not made any transaction or instruction in relation to any PRS for more than 12 months subsequent to attaining the age of 80 years, the trustee may pay any unclaimed accrued benefit held by the trustee to the Registrar of Unclaimed Monies, in accordance with the provisions of the Unclaimed Moneys Act

50 TRANSACTION INFORMATION (CONT D) 5.12 KEEPING TRACK OF YOUR INVESTMENTS Daily Prices of Units Visit our website at for daily NAV/price of the funds. Statement of Transaction Statements of Transaction will be issued within 21 days from the date of each transaction to confirm the details of your transactions. Annual/ Interim Statement of Investment & Annual/ Interim Reports Annual/Interim Statements and Reports which include a Summary of Distribution (if any) are made available within 2 months from the close of each financial year or interim period. The fund s annual report is available upon request. If you did not receive a copy of the reports and statements, please contact Public Mutual Hotline at for assistance. 48

51 6 THE PRS PROVIDER 6.1 CORPORATE PROFILE OF PUBLIC MUTUAL The funds listed in this Disclosure Document are managed by Public Mutual, a wholly owned subsidiary of Public Bank. Public Mutual is a licensed fund manager and PRS Provider and is the largest private unit trust manager in terms of NAV. Incorporated on 21 July 1975 under its former name Kuala Lumpur Mutual Fund Berhad, Public Mutual began its operations on 2 July 1980 and was among the early pioneers of the industry. Public Mutual has been managing unit trust funds in Malaysia for over two decades. As at LPD, Public Mutual currently manages 126 unit trust funds and 9 PRS funds with a total NAV of over RM74.7 billion. In terms of NAV and market position within the Malaysian private unit trust industry, Public Mutual maintains the largest market share of assets under management ROLES, DUTIES AND RESPONSIBILITIES OF THE PRS PROVIDER The roles, duties and responsibilities of the PRS Provider include, but is not limited to, the following:- to ensure that the PRS is managed within the ambit of the Deed, the CMSA 2007, the securities laws and the relevant guidelines at all times; to provide customer support and distribution networks to best serve the members of the Scheme; to keep the members informed of the management and performance of funds under PRS through interim and annual reports; to ensure that the interest of the members is best served and protected at all times. 6.3 FINANCIAL PERFORMANCE OF PUBLIC MUTUAL The following is a summary of the past performance of Public Mutual based on the audited financial statements for the past 3 financial years ended 31 December: 2014 RM RM RM 000 Paid-up capital 6,000 6,000 6,000 Shareholders funds 149, , ,749 Turnover 1,092,536 1,166,041 1,201,290 Profit before tax 489, , ,903 Profit after tax 419, , ,801 As at LPD, the PRS Provider is not engaged in any material litigation and arbitration, either as plaintiff or defendant, and is not aware of any significant proceedings, pending or threatened or of any facts likely to give rise to any proceedings which might materially and adversely affect its business or financial position. 6.4 THE BOARD OF DIRECTORS The Board of Directors meets monthly, and is involved in determining the corporate policies and direction of the Company. 1 Source: Lipper, 31 March

52 THE PRS PROVIDER (CONT D) As at LPD, the names of the members on the Board and their profiles are set out below. Board Members Tan Sri Dato Sri Dr. Teh Hong Piow Non-Independent Director (Chairman) Tan Sri Dato Sri Tay Ah Lek Non-Independent Director Dato Sri Lee Kong Lam Non-Independent Director Dato (Dr) Haji Mohamed Ishak Bin Haji Mohamed Ariff Independent Director Mr. Quah Poh Keat Non-Independent Director Dato Mohammed Najeeb Bin Abdullah Independent Director Dato Mohd Hanif Bin Sher Mohamed Independent Director Ms. Yeoh Kim Hong Chief Executive Officer / Executive Director Director (Chairman) Non-Independent Tan Sri Dato Sri Dr. Teh Hong Piow is a Director of Public Mutual since September He began his banking career in 1950 and has 67 years experience in the banking and finance industry. He founded Public Bank in 1965 at the age of 35. He was appointed as a Director of Public Bank on 30 December 1965 and had been the Chief Executive Officer of Public Bank since its commencement of business operations in August He was redesignated as Chairman of Public Bank and Chairman of Public Bank Group with effect from 1 July Tan Sri Dato Sri Dr. Teh Hong Piow had won both domestic and international acclaim for his outstanding achievements as a banker and the Chief Executive Officer of a leading financial services group. Awards and accolades that he had received include: Asia s Commercial Banker of the Year 1991 The ASEAN Businessman of the Year 1994 Malaysia s Business Achiever of the Year 1997 Malaysia s CEO of the Year 1998 Best CEO in Malaysia 2004 The Most PR Savvy CEO 2004 The Asian Banker Leadership Achievement Award 2005 for Malaysia Award for Outstanding Contribution to the Development of Financial Services in Asia 2006 Lifetime Achievement Award 2006 Award for Lifetime Achievement in Corporate Excellence, Dedication and Industry 2006 Asia s Banker of High Distinction Award 2006 The BrandLaureate Brand Personality Award 2007 ASEAN Most Astute Banker Award 2007 Lifetime Entrepreneurship Achievement Award 2007 The Pila Recognition Award 2007 Asian Banker Par Excellence Award 2008 Best CEO in Malaysia 2009 Asia s Banking Grandmaster 2010 Asian Corporate Director Recognition Award 2010 for Malaysia Value Creator: Malaysia s Outstanding CEO 2010 The BrandLaureate - Tun Dr. Mahathir Mohamad Man of the Year Award Best CEO (Investor Relations) 2011 for Malaysia Asian Corporate Director Recognition Award 2011 for Malaysia The BrandLaureate Premier Brand Icon Leadership Award 2011 Best CEO (Investor Relations) 2012 for Malaysia Asian Corporate Director Recognition Award 2012 for Malaysia Best CEO (Investor Relations) 2013 for Malaysia Asian Corporate Director Recognition Award 2013 for Malaysia BrandLaureate Banker of the Year Award Best CEO (Investor Relations) 2014 for Malaysia Asian Corporate Director Recognition Award 2014 for Malaysia Banker Extraordinaire

53 THE PRS PROVIDER (CONT D) Global Chinese Entrepreneur Lifetime Achievement Award 2015 BrandLaureate Icon of Icons - The King of Banking Asia s Best CEO (Investor Relations) 2015 for Malaysia William Bill Seidman Lifetime Leadership Achievement in Financial Service Industry Award 2015 Asian Corporate Director Recognition Award 2015 for Malaysia Asia s Best CEO (Investor Relations) 2016 for Malaysia Asian Corporate Director Recognition Award 2016 for Malaysia Tan Sri Dato Sri Dr. Teh Hong Piow was awarded the Medal For the Course of Vietnamese Banking by the State Bank of Vietnam in 2002 for his contributions to the Vietnamese banking industry over the past years. Tan Sri Dato Sri Dr. Teh Hong Piow was conferred the Recognition Award 2007 by the National Bank of Cambodia in appreciation of his excellent achievement and significant contribution to the banking industry in Cambodia. Tan Sri Teh was conferred the Royal Order of Monisaraphon, Commander by The Royal Government of The Kingdom of Cambodia in 2016, in recognition of his outstanding leadership and immense social economic contributions towards the progress and development of Cambodia over the last 24 years. He is the first Malaysian banker ever to receive the Royal Order. Tan Sri Teh was awarded the Medal for the Development of Vietnam Banking Industry in 2017 by the State Bank of Vietnam in recognition for his manifold contribution to the construction and development of Vietnam s banking industry. Tan Sri Teh is the first foreign Banker in Vietnam to be awarded this medal. In recognition of his contributions to society and the economy, he was conferred the Doctor of Laws (Honorary) from University of Malaya in He had served in various capacities in public service bodies in Malaysia; he was a member of the Malaysian Business Council from 1991 to 1993; a member of the National Trust Fund from 1988 to 2001; a founder member of the Advisory Business Council since 2003; and is a member of the IPRM Accreditation Privy Council. He is an Emeritus Fellow of the Malaysian Institute of Management and is a Fellow of the Asian Institute of Chartered Bankers; the Chartered Institute of Bankers, United Kingdom; the Institute of Administrative Management, United Kingdom; and the Governance Institute of Australia. Director Non Independent Tan Sri Dato Sri Tay Ah Lek is a Director of Public Mutual since August He has 56 years experience in the banking and finance industry. He was appointed as an Executive Director of Public Bank on 18 June 1997 and was re-designated as Managing Director/Chief Executive Officer with effect from 1 July He joined the Public Bank Group as a pioneer staff in He was the Executive Vice-President of Public Bank from 1995 to 1997 and prior to this appointment, he was the Executive Vice-President of the former Public Finance Bhd. Tan Sri Dato Sri Tay Ah Lek holds a Master s degree in Business Administration from Henley, United Kingdom and attended the Advanced Management Program at Harvard Business School. He is an Emeritus Fellow of the Malaysian Institute of Management, a Fellow, Chartered Banker, of the Asian Institute of Chartered Bankers, and is a Fellow of CPA Australia and the Financial Services Institute of Australasia. He is presently the Chairman of the Association of Hire Purchase Companies Malaysia and is a Member of the Steering Committee and the Service Provider Consultative Group of the National Payments Advisory Council. Director Non Independent Dato Sri Lee Kong Lam is a Director of Public Mutual since July He has 50 years experience in the banking and finance industry. He joined Public Bank in November 1996 as General Manager and was subsequently appointed Senior General Manager in 1997 and Executive Vice-President in He was appointed as an Executive Director of Public Bank on 28 November 2001 and was re-designated as Non-Independent Non-Executive Director of Public Bank with effect from 28 November 2013, following his retirement as Executive Director/Deputy Chief Executive Officer of Public Bank. He was appointed as Non-Independent Non-Executive Deputy Chairman of Public Bank with effect from 1 September

54 THE PRS PROVIDER (CONT D) Prior to joining Public Bank, he was with Bank Negara Malaysia (BNM) and was involved primarily in the supervision and examination of banking institutions. He retired in August 1996 as the Head of BNM s Examination Department and as a member of BNM s Management Committee. He is a Fellow of CPA Australia and the Chartered Institute of Bankers, United Kingdom; and a Chartered Accountant of the Malaysian Institute of Accountants. Director Independent Dato (Dr) Haji Mohamed Ishak Bin Haji Mohamed Ariff is a Director of Public Mutual since December He is a qualified Professional Chartered Town Planner and a Professional Landscape Architect from the University of Newcastle-upon-Tyne, England. He was honoured by the University of Newcastle-upon-Tyne, England with the Honorary Degree of Doctor in Civil Law in May He is a Fellow of the Royal Town Planning Institute London; Fellow of Malaysian Institute of Planners; and Fellow of Institute of Landscape Architects Malaysia. He had served in various State and Federal Governments before retiring in He was a member of the Advisory Board of the City of Kuala Lumpur (Dewan Bandaraya Kuala Lumpur) until December Over the years and through his involvement as a Director of several public listed companies, he has accumulated vast experiences in various sectors namely, property and housing development, hotel management, food manufacturing and expressway management. Dato Mohamed Ishak is a Trustee of Yayasan Seni Selangor (Galeri Shah Alam) and Director of MIMA Holdings Enterprise Sdn Bhd. Director Non Independent Mr. Quah Poh Keat is a Director of Public Mutual since 1 September He was appointed as Deputy Chief Executive Officer II of Public Bank on 1 October 2013 and was redesignated as Deputy Chief Executive Officer on 28 November He retired as Deputy Chief Executive Officer on 31 December He is a Fellow of the Malaysian Institute of Taxation and the Association of Chartered Certified Accountants; and a Member of the Malaysian Institute of Accountants, the Malaysian Institute of Certified Public Accountants and the Chartered Institute of Management Accountants. He was a partner of KPMG since October 1982 and appointed Senior Partner (also known as Managing Partner in other practices) in October 2000 until 30 September He retired from the firm on 31 December He is experienced in auditing, tax and insolvency practices and had worked in Malaysia and United Kingdom; his experiences include restructuring, demergers and privatisation. Mr. Quah also sits as a Director on the Boards of Directors of Public Financial Holdings Ltd, Public Bank (Hong Kong) Ltd, Cambodian Public Bank Plc, Campu Lonpac Insurance Plc, LPI Capital Bhd and Lonpac Insurance Bhd. He is also a Director of Kuala Lumpur Kepong Berhad and Paramount Corporation Berhad. Director Independent Dato Mohammed Najeeb Bin Abdullah is a Director of Public Mutual since September He is an MBA graduate of the University of Charles Darwin, Australia and is also a graduate from the Chartered Institute of Marketing (UK). He has more than 35 years experience in both conventional and Islamic banking. He started his career in banking in a local bank and later worked in Public Bank for over 27 years. Through the years he has built an exciting and successful career in banking, attaining a top management position. In April 2010, Dato Mohammed Najeeb was appointed as a Senator of the Upper House of Parliament, by the Government of Malaysia for a 3-year term. Having accepted the appointment, he relinquished his position as General Manager of Public Islamic Bank Bhd, in compliance with Bank Negara Malaysia s regulations. As a Senator, he participated in many international forums and conferences. In October 2012, he led a Senatorial delegation to the United Nations 67 th General Assembly, New York, where he presented Malaysia s two policy statements at the Second Committee Meeting on Economic & Financial. Dato Mohammed Najeeb is an Independent Non-Executive Director of Public Islamic Bank Bhd, Cambodian Public Bank Plc, Campu Lonpac Insurance Plc, PB Trustee Services Bhd, AIA PUBLIC Takaful Bhd and a member of the Audit Committee of Public Islamic Bank Bhd. He is also a member of the Board of Trustees for Yayasan Negeri Sembilan and the Director of Ambienz Holidays Sdn Bhd. 52

55 THE PRS PROVIDER (CONT D) Director Independent Dato Mohd Hanif Bin Sher Mohamed is a Director of Public Mutual since April He has vast experience in corporate finance and consumer banking including strategic planning, risk management, rehabilitation and restructuring debts, property development, property investment and manufacturing services. He was the former Chief Executive Officer of Credit Corporation (Malaysia) Berhad (CCM), where he served for over 26 years and held various senior management positions including managing associate companies in Singapore and Brunei. Dato Mohd Hanif was an lndependent Director of Credit Guarantee Corporation Malaysia Berhad (CGC) (September 2005 to June 2014). Here he served as Chairman of Board Risk Committee, Board lnformation Technology Committee, Board Bumiputra Development Committee and as a Member of Board Audit Committee and Board lnvestment Committee. He also served as lndependent Director in Danajamin Berhad (May 2009 to June 2014) where he was the Chairman of the Board Risk Committee and member of the Board Nomination & Remuneration Committee and Board Underwriting Committee. He was an Independent Director of Agro Bank Berhad (June 2008-June 2010) where he served as Chairman of Board Risk Committee, Board Investment Committee and Board Credit and Loan Committee. Dato Mohd Hanif was also the Chairman of the Entrepreneur Rehabilitation Fund (ERF), a subsidiary of BNM, and the Chairman of the Board Executive Committee (EXCO) till year Currently, Dato Mohd Hanif is an Independent Non-Executive Director for Public Investment Bank Berhad. He is the Chairman of Credit Counseling and Debt Management Agency (AKPK), and Sivash Holdings Berhad. He is a Board Member of Protasco Berhad and Chairman of the Board Audit Committee. He is a Board Member of TPPT Sdn Bhd where he is also the Chairman of the Board Audit Committee. He is also a member of the Central Bank s Small Debt Resolution Committee (SDRC). Chief Executive Officer / Executive Director Non Independent Ms. Yeoh Kim Hong, CA(M), CPA, CFP has more than 20 years experience in the unit trust industry. Ms. Yeoh is the Chief Executive Officer of Public Mutual since July She is also a member of the Board of Directors and the Investment Committees of Public Mutual. Ms. Yeoh has played an active role in the development of the unit trust industry. She sits in the Board of the FIMM and is a member of the Industry Development Committee, Regulatory Committee and Disciplinary Committee. Prior to that, Ms. Yeoh was a member of the Board of Governors as well as the Chairman of the Education and Examination Committee in the Financial Planning Association Malaysia (FPAM). Prior to joining Public Mutual, Ms. Yeoh was with an international public accounting firm for more than 12 years during which she gained exposures in auditing and management consultancy and advisory, both locally and in the United States. She is a member of the Malaysian Institute of Certified Public Accountants and the Malaysian Institute of Accountants. 6.5 PROFILE OF KEY MANAGEMENT STAFF Chief Executive Officer / Executive Director Ms. Yeoh Kim Hong Please refer to her profile as set out in Section 6.4 (page 53) of this Chapter. Senior General Manager Investment Division Mr. Lum Ming Jang holds an honours degree in Accountancy from the National University of Singapore and is a Chartered Financial Analyst. He joined Public Mutual in 2001 as Senior Manager Investment Research and assumed the position of Senior Manager Fund Management and co-designated fund manager of various funds in He was promoted to General Manager Investment in 2004 and subsequently Senior General Manager Investment in

56 THE PRS PROVIDER (CONT D) Mr. Lum has more than 25 years of experience in fund management, investment research and stockbroking. Prior to joining Public Mutual, Mr. Lum held management positions at various established local and foreign stockbroking houses, overseeing their investment research functions and institutional sales. Mr. Lum s investment research experience include assessing corporate earnings growth prospects, evaluating management track record, computation of stock valuations and financial analysis of listed companies on the Bursa Securities. He is also familiar with analysis of financial and economic trends which affect stockmarket movements. On the fund management side, Mr. Lum has served as a co-fund manager of selected unit trust funds managed by Public Mutual since 2003 before assuming the position of General Manager Investment in 2004 and subsequently Senior General Manager Investment in Senior General Manager Retail Business & Support Mr. Lee Kean Gie, CFP, ChFC, graduated with an honours degree in Economics and Chinese Studies from the University of Malaya. He joined Public Mutual as Sales Manager in Prior to joining Public Mutual, he was with a leading insurance company involved in the marketing of insurance products and agency development. He was promoted to Deputy Senior Manager in 1996 and subsequently Senior Manager Sales and Training in He was appointed as General Manager Sales & Training in 2004 and re-designated as General Manager Agency Operations in He assumed his current position as Senior General Manager in He currently oversees areas relating to nationwide agency development and monitoring performance of branches network. Senior General Manager Information Technology Mr. Richard Tan Koon Eam holds a diploma in Computer Science and has over 20 years experience in the information technology sector. Mr. Tan possesses a wide knowledge base which includes software design & development, project management, consultancy and web-based application development. He joined Public Mutual in Prior to joining Public Mutual, he was a Chief Technical Officer of a MSC status company specialising in E-commerce solutions. He is responsible for Public Mutual s information technology strategies and operations. General Manager Customer Service & Unit Trust Operations Ms. Hang Siew Eng joined Public Mutual in 1980 and was appointed as General Manager in Ms. Hang is responsible for the overall fundholder administration and the management of customer transactions and records. In addition, she is in charge of Customer Service and Mutual Gold for Public Mutual. She holds a diploma in Administrative Management and has more than 20 years experience in the various aspects of unit trust management. General Manager Finance, Fund Administration & Support Ms. Tang Pueh Fong, a qualified accountant CA(M), CPA, joined Public Mutual on 1 July 2007 and assumed her position as General Manager in January Ms. Tang oversees the areas relating to finance, fund accounting, fund operations, secretariat and administration and properties. Prior to joining Public Mutual, Ms. Tang was a director with an international public accounting firm during which she gained extensive knowledge and experience in auditing and business process advisory services with specialisation in fund management operations. General Manager Business Learning & Development Ms. Evelyn Chu Swee Yin, CFP, graduated with an honours degree in Food Science & Nutrition from University Kebangsaan Malaysia. She is a Certified Financial Planner licensee, Member of MAPS (Malaysian Association of Professional Speakers), MAFa (Malaysian Association of Facilitators) and Neuro-Linguistic Programming (NLP) practitioner. Evelyn has more than 25 years of agency training and development exposure in both the insurance and unit trust industries. Prior to joining Public Mutual, she was with a multi-national insurance company and was involved in training, agency development and financial planning. She subsequently headed the training and financial planning operations of an agency based unit trust management company. Evelyn joined Public Mutual as Deputy General Manager Agency Development & Training in 2006 and assumed her present post in She is responsible for Public Mutual s agency learning and development. 54

57 THE PRS PROVIDER (CONT D) Assistant General Manager Compliance En. Abdul Samad B. Jaafar is the designated person responsible for compliance matters. He holds a BA (Hons) degree in Accounting and Management Control from Sheffield Hallam University, UK and a Master in Business Administration from International Islamic University Malaysia. He joined Public Mutual in He has more than 20 years working experience in audit and compliance. He first joined Public Mutual as the Internal Audit Manager and assumed his present post in PROFILE OF KEY INVESTMENT PERSONNEL The investment team of Public Mutual which comprises of more than 20 portfolio managers and a research team of more than 30 research analysts, is headed by the Senior General Manager Investment Division who reports directly on the management of the funds to the Chief Executive Officer. The profiles of key members of the Investment team responsible for the fund management function of the funds is as follows: Senior General Manager Investment Division Mr. Lum Ming Jang Please refer to his profile as set out in Section 6.5 (pages 53 to 54) of this Chapter. General Manager Investment, Equity Portfolio Management Mr. Chiang Kang Pey Mr. Chiang obtained his CMSRL on 8 February Mr. Chiang holds a Master of Financial Management (Dean s Honours List) degree from the Rotterdam School of Management, Erasmus University in the Netherlands and a Bachelor of Economics in Accounting from Monash University in Australia. He is a CFA charterholder and has been managing equity funds since Mr. Chiang joined Public Mutual in 2004 as Manager Investment Research and was subsequently re-designated as Manager Investment, Equities Section where he was involved in managing selected equity funds. He was promoted to the position of Senior Portfolio Manager Investment, Equities Section in 2005 and assumed the position of co-fund manager of various equity funds. From 2006 onwards, Mr. Chiang was appointed as the designated fund manager of selected equity funds. He was promoted to the position of Assistant General Manager in 2008 and subsequently Deputy General Manager in In 2016, Mr. Chiang assumed his current position as Head of Equity Portfolio Management and in 2017, he was promoted to the position of General Manager. In this capacity, apart from overseeing the team of equity portfolio managers, he also actively constructs, monitors and rebalances the equity portfolios to achieve the stated objective of selected funds. Mr. Chiang commenced his investment career in 1995 as an equity analyst at a stockbroking firm and subsequently joined the investment department of a life insurance company. Prior to joining Public Mutual, he was attached to an asset management company; initially as an assistant fund manager responsible for analysing and valuing listed companies. He was later made a fund manager, jointly managing Asia Pacific (ex-japan) portfolios where he specialised in Malaysian and Thailand equities. Assistant General Manager Investment, Equity Portfolio Management Ms. Tan Chee Chin Ms. Tan obtained her CMSRL on 8 February Ms. Tan graduated with a Bachelor of Commerce (Hons) in Accounting and Finance from the University of Western Australia and is a CFA charterholder. She joined Public Mutual in 2003 as Assistant Manager, Investment Research. She was made Deputy Manager Investment, Equities Section and designated co-fund manager of selected funds managed by Public Mutual in Ms. Tan assumed her position of Portfolio Manager Investment, Equities Section in 2006 and Senior Portfolio Manager Investment, Equities Section in She was promoted to Assistant General Manager Investment, Equities Section in Ms. Tan previously worked in a foreign financial institution with a global presence before embarking into a career in the financial markets. She was an investment analyst for an established local stockbroking house for a period of time before moving on to the asset management industry. Ms. Tan has over 10 years experience in the Malaysian equity market. 55

58 THE PRS PROVIDER (CONT D) Assistant General Manager Investment, Equity Portfolio Management En. Mat Radzuan bin Abd Razak En. Mat Radzuan obtained his CMSRL on 8 February En. Mat Radzuan holds a Bachelor of Science Degree in Actuarial Science and Finance from Roosevelt University, USA. He is a CFA charterholder and a member of the CFA Institute and CFA Malaysia. He joined Public Mutual in 2004 as Assistant Manager Investment, Equities Section and was subsequently made co-fund manager of selected funds managed by Public Mutual in En. Mat Radzuan assumed his position of Portfolio Manager Investment, Equities Section in 2006 and Senior Portfolio Manager Investment, Equities Section in He was promoted to Assistant General Manager Investment, Equities Section in En. Mat Radzuan has more than 20 years of experience in the Malaysian equity market. Prior to joining Public Mutual, En. Mat Radzuan had worked with various companies including asset management, insurance, stockbroking and futures broking companies. Assistant General Manager Investment, Equity Portfolio Management Ms. Chen Yuet Fong Ms. Chen obtained her CMSRL on 19 October Ms. Chen graduated with a Bachelor of Economics from the University of Malaya. She is a CFA charterholder. She joined Public Mutual in 2005 as Assistant Manager, Investment, Equity Section. She assumed the position of Portfolio Manager Investment, Equities Section in 2006 and Senior Portfolio Manager, Equities Section in She was promoted to Assistant General Manager Investment, Equity Portfolio Management in Prior to joining Public Mutual, Ms. Chen was attached to a local asset management company as a fund manager. Her fund management experience includes setting the investment strategy for the assets under management and management of equity and fixed income portfolios. Ms. Chen was also previously an investment analyst for a local stockbroking house and her investment research experience includes assessing corporate earnings growth prospects, computation of stock valuations and financial analysis of listed companies. Assistant General Manager Investment, Fixed Income Portfolio Management and Investment Research Mr. Philip Wong Chee Pin Mr. Wong obtained his CMSRL on 15 November Mr. Wong holds a Master of Science degree in Investment Analysis from the University of Stirling and a Bachelor of Arts degree in Accountancy Studies from the University of Huddersfield in the United Kingdom. Mr. Wong joined Public Mutual in 2013 as Assistant General Manager Investment Research and assumed his current position as Head of Fixed Income Portfolio Management and Head of Malaysia Equity Research in Mr. Wong has over 22 years of experience in investment research and portfolio management. Prior to joining Public Mutual, Mr. Wong was the Chief Investment Officer for a foreign investment management company. He also accumulated extensive experience when he served as Senior Vice President Institutional Equity Investment, at an established investment management company. Assistant General Manager Investment, Fixed Income Portfolio Management En. Zaharudin bin Ghazali En. Zaharudin obtained his CMSRL on 12 September En. Zaharudin, CFP, holds a Bachelor in Library Science from Universiti Teknologi MARA. He joined Public Mutual in early 1991 as an Executive in the Investment Department. In late 1992, he was assigned to assist the fund managers in the cash management operations of the funds. En. Zaharudin was promoted to Assistant Manager Investment in 1997 and later to Manager Fixed Income Management in He was subsequently re-designated as Manager Investment, Fixed Income Section in 2004 and later promoted to Senior Portfolio Manager Investment, Fixed Income Section in He was promoted to Assistant General Manager in En. Zaharudin has been involved in overseeing and formulating the investment strategy for fixed income portfolios and has contributed to the development and advancement of operations and system capabilities of the Fixed Income section. 56

59 THE PRS PROVIDER (CONT D) 6.7 THE INVESTMENT COMMITTEE The Investment Committee meets twice a month and oversees the investment process of the funds. The roles and primary functions of the Investment Committee are as follows: Review the performance and portfolios/asset allocation of the funds. Review the performance of the markets and their respective outlook. Review and approve the portfolio strategies recommended by the Investment team. Members of the Investment Committee Tan Sri Dato Sri Tay Ah Lek Dato Sri Lee Kong Lam Dato (Dr) Haji Mohamed Ishak Bin Haji Mohamed Ariff (Independent) Mr. Quah Poh Keat Dato Mohammed Najeeb Bin Abdullah (Independent) Dato Mohd Hanif Bin Sher Mohamed (Independent) Ms. Yeoh Kim Hong For profiles of the members of the Investment Committee, please refer to pages 51 to 53. For further information on the PRS Provider and Investment Committee, please visit our website at THE AUDIT, RISK AND COMPLIANCE COMMITTEE The Audit, Risk and Compliance Committee (ARCC) of Public Mutual meets 6 times a year and as and when required. The roles and primary functions of the ARCC includes the following: Review and report to the Board of Directors internal control issues identified by the internal audit, the external auditors, regulatory authorities and management. Acts as a forum for discussion of internal control issues. Contribute to the Board of Directors review of the effectiveness of the system of internal control and risk management. Responsible to the Board of Directors in ensuring proper management of assets, liabilities, revenue and expenses of the Company and compliance with statutory and regulatory requirements. Members of the ARCC Tan Sri Dato Sri Tay Ah Lek Dato Sri Lee Kong Lam Dato (Dr) Haji Mohamed Ishak Bin Haji Mohamed Ariff (Independent) Mr. Quah Poh Keat Dato Mohammed Najeeb Bin Abdullah (Independent) Dato Mohd Hanif Bin Sher Mohamed (Independent) For profiles of the members of the ARCC, please refer to pages 51 to

60 THE PRS PROVIDER (CONT D) 6.9 RELATED PARTY TRANSACTIONS/CONFLICT OF INTEREST All related-party transactions carried out for or on behalf of the funds under the PRS are executed on terms that are best available to the funds and which are no less favourable than arm s length transactions between independent parties. Such transactions may include: dealings on sale and purchase of investment securities and instruments by the funds. money market deposits and placements by the funds. holding of units in the funds by related parties. Where a conflict of interest arises due to the Investment Committee member or director holding substantial shareholding or directorships of public companies, and the fund(s) invests in that particular share or stock belonging to a public listed company, the said committee member or director shall abstain from any decision making relating to that particular share or stock of the fund(s). Employees of the PRS Provider are required to obtain prior written approval and declare their dealings in securities POLICIES AND PROCEDURES ON MONEY LAUNDERING ACTIVITIES The PRS Provider has established a set of policies and procedures to counter the risk involving money laundering and financing of terrorism, in compliance with the provisions of Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act The policies and procedures encompass the following key initiatives: Provision of training and education on the subject matter to all employees, with emphasis on front-line personnel and PRS consultants; Setting up specific measures and controls with regard to customer identification and acceptance which include verification of the identity of customer via relevant identification documents; Ensuring prompt reporting of suspicious transactions to the Financial Intelligence and Enforcement Department of Bank Negara Malaysia DOCUMENTS AVAILABLE FOR INSPECTION For a period of not less than 12 months from the date of this Disclosure Document, the following documents or copies of them or other documents as may be required by the SC (where applicable) is available for inspection at the registered office of the PRS Provider or such other place as the SC may determine: (a) (b) (c) (d) (e) (f) (g) The deed and supplemental deeds; Each material contract or document referred to in this Disclosure Document (if any); The latest annual and interim reports of the funds; The audited financial statements of the funds and the PRS Provider for the current financial year (where applicable) and last 3 financial years or from the date of establishment/incorporation, if less than 3 years, preceding the date of this Disclosure Document; All reports, letters or other documents, valuation and statements by any expert referred to in this Disclosure Document (if any); Writ and relevant cause papers for all current material litigation and arbitration disclosed in this Disclosure Document (if any); and All consents given by experts disclosed in this Disclosure Document (if any). 58

61 7 THE TRUSTEE 7.1 THE TRUSTEE S WILLINGNESS TO ASSUME POSITION AmanahRaya Trustees Berhad ( ART ) has indicated its willingness to assume the position of trustee to Public Mutual PRS Shariah-based Series and to undertake all the obligations that are attached to it under the Deed, all relevant written laws and rule of law. 7.2 ROLES, DUTIES AND RESPONSIBILITIES OF THE TRUSTEE The trustee will perform among others, the following roles, duties and responsibilities: To act as the custodian of the funds and safeguard the interest of the members; To exercise due diligence and vigilance in carrying out its functions and duties in accordance with the Deed, SC Guidelines, CMSA 2007 and securities laws; To ensure that the PRS Provider manages and administers the funds in accordance with the Deed, SC Guidelines, CMSA 2007 and securities laws; To ensure proper records are kept of all transactions in respect of the funds; To ensure that the PRS Provider keeps the trustee fully informed of the details of the PRS Provider s policies in investments and any changes thereof; and To ensure the accounts are audited at the end of each accrual period by the auditors and the PRS Provider, on behalf of the trustee forwards to the members (at their last known registered address) a copy of the audited annual accounts within two months after the financial year end. 7.3 PROFILE OF AMANAHRAYA TRUSTEES BERHAD ( ART ) ART was incorporated under the Companies Act 1965 on 23 March 2007 and registered as a trust company under the Trust Companies Act ART is a subsidiary of Amanah Raya Berhad (ARB) which is wholly owned by the Minister of Finance (Incorporated). ART took over the corporate trusteeship functions of ARB and acquired ARB s experience of more than 49 years in trustee business. ART has been registered and approved by the SC to act as trustee to PRS. As at LPD, ART has 175 unit trust funds, 39 wholesale funds, 3 real estate investment trust funds and 9 PRS under its trusteeship. Financial Performance The following is a summary of ART s performance based on its audited financial statements for the past 3 financial years ended 31 December: 2014 RM RM RM 000 Paid-up share capital 1,000 1,000 1,000 Shareholders funds 9,657 10,529 12,261 Turnover 30,326 32,182 33,406 Profit before tax 22,806 24,375 24,719 Profit after tax 17,236 18,272 18,732 As at LPD, the trustee and its delegate are not engaged in any material litigation and arbitration, either as plaintiff or defendant, and the trustee and its delegate are not aware of any proceedings, pending or threatened or of any facts likely to give rise to any proceedings which might materially and adversely affect their financial position or business. 59

62 THE TRUSTEE (CONT D) Board of Directors Tan Sri Sabbaruddin Chik Director (Chairman) Dato Haji Ismail bin Ibrahim Director Tuan Haji Zulkifly bin Sulaiman Director Puan Mahfuzah binti Baharin Director Encik Adenan bin Md. Yusof Director Chief Executive Officer Puan Hajjah Habsah Binti Bakar Delegation of Custodian Function ART has delegated its custodian function for the foreign investments of PRS-IGRF, PRS-IMDF and PRS-ISEQF to Citibank N.A, Singapore branch. Citibank N.A. Singapore Branch was registered in Singapore by the Accounting and Corporate Regulatory Authority of Singapore on 6 January Citibank N.A in Singapore began providing securities service in the mid-1970 s and a fully operational global custody product was launched in the early 1990 s. To date the securities services business service a diverse range of clients such as banks, fund managers, broker dealers and insurance companies. The roles and duties of Citibank N.A, Singapore, are as follows: To act as sub-custodian for the selected cross-border investment of the funds including the opening of cash and custody accounts and to hold in safe keeping the assets of the funds such as equities, bonds and other assets. To act as paying bank for the selected cross-border investment which include trade settlement and fund transfer services. To provide corporate action information or entitlements arising from the above underlying assets and to provide regular reporting on the activities of the invested portfolios. 60

63 8 THE SHARIAH ADVISER 8.1 GENERAL INFORMATION ON ZICO SHARIAH ZICO Shariah Advisory Services Sdn. Bhd. ( ZICO Shariah ) is the Shariah Adviser to the funds under Public Mutual PRS Shariah-based Series. ZICO Shariah is a member of ZICO Holdings and is registered by the SC to advise on sukuk issuances, Islamic funds as well as other Islamic capital market products and instruments. It is also approved by the Central Bank of Malaysia to provide Shariah advice, Shariah review and Shariah audit services to Islamic financial institutions. ZICO Shariah has more than 9 years of Shariah advisory experience. As at LPD, ZICO Shariah is the Shariah Adviser for 46 unit trust funds and 4 PRS. Board of Directors Dato Dr Nik Norzrul Thani - Director Dr Aida Othman - Director Ahmad Ab Hamid - Director Zahrul Annuar Mat Desa - Director Kamaruzaman Ashari - Director 8.2 ROLES AND RESPONSIBILITIES OF THE SHARIAH ADVISER The roles and responsibilities of the Shariah Adviser include: 1. Ensuring that the operations and investments of the funds are in compliance with Shariah principles/ requirements; 2. Providing expertise and guidance for the funds in all matters from the perspective of Shariah principles, including on the funds deed and Disclosure Document, its structure and investment process, and other operational and administrative matters; 3. Consulting the SC who may consult the SACSC where there is any ambiguity or uncertainty as to an investment, instrument, system, procedure and/or process; 4. Scrutinising the funds compliance reports as provided by the PRS provider s compliance officer, transaction reports provided by or duly approved by the trustee and any other report deemed necessary for the purpose of ensuring that the funds investments are in line with Shariah principles; 5. Preparing reports to be included in the funds interim and annual reports certifying whether the funds have been managed and administered in accordance with the Shariah principles; 6. Ensuring that the funds comply with any guideline, ruling or decision issued by the SC, with regard to Shariah matters; 7. Vetting and advising on the promotional materials of the funds; 8. Assisting and attending to any ad-hoc meeting called by the SC and/or any other relevant authority. The Shariah Adviser reviews the funds investments on a monthly basis to ensure compliance with Shariah requirements at all times and meets with the PRS Provider on a quarterly basis to review and advise on the funds compliance with Shariah requirements. 61

64 THE SHARIAH ADVISER (CONT D) 8.3 PROFILE OF DESIGNATED PERSONS RESPONSIBLE FOR SHARIAH MATTERS RELATING TO THE FUNDS Professor Dr Mohamad Akram Laldin (Shariah Adviser) Professor Dr Mohamad Akram is currently the Executive Director of International Shari ah Research Academy for Islamic Finance (ISRA). At present, he is the Member of Bank Negara Malaysia (BNM) Shariah Advisory Council, Shariah Advisory Committee of Employee Provident Fund (EPF), Member of Yassar Limited Shariah Advisory Board, EAB (London) Shariah Advisory Board, Chairman of Islamic Advisory Board HSBC Insurance Singapore, Shariah Adviser to ZICO Advisory Malaysia, Member of Shariah Advisory Council International Islamic Financial Market (IIFM) Bahrain, Shariah Advisor to Dar al-takaful Dubai, Committee member of AAOIFI Shariah Standards, Bahrain and other Boards locally and internationally. Prior to joining ISRA he was an Assistant Professor at the Kulliyah of Islamic Revealed Knowledge and Human Sciences, International Islamic University, Malaysia (IIUM). In the period , he was a Visiting Assistant Professor at the University of Sharjah, Sharjah, United Arab Emirates. Professor Dr Akram holds a B.A. Honours degree in Islamic Jurisprudence and Legislation from the University of Jordan, Amman, Jordan and a Ph.D. in Principles of Islamic Jurisprudence (Usul al-fiqh) from the University of Edinburgh, Scotland, United Kingdom. He is also a member of the Board of Studies of the Institute of Islamic Banking and Finance, International Islamic University Malaysia. He is a registered Shariah Adviser for Islamic securities with the SC and has acted as Shariah Adviser in the issuance of several sukuk. In addition, he is also prolific author of academic works specifically in the areas of Islamic banking and finance. He is the recipient of the Zaki Badawi Award 2010 for Excellence in Shariah Advisory and Research. Professor Dr Ashraf bin Md Hashim (Shariah Adviser) Professor Dr Ashraf bin Md Hashim is a senior researcher at the International Shariah Research Academy for Islamic Finance (ISRA) and a Professor at International Centre for Education in Islamic Finance (INCEIF). He is also Chief Executive Officer of ISRA Consultancy. Professor Dr Ashraf bin Md Hashim attained a PhD (Islamic Law) from the University of Birmingham, UK, 1999; A Masters degree (1995) in Fiqh and Usul al-fiqh from University of Jordan; Bachelor degree (1991) in Shari ah from Islamic University in Medina. He has also obtained a Postgraduate Diploma in Islamic Law and Practice (2001) from International Islamic University Malaysia. Previously, he was an academic staff at the Department of Fiqh and Usul Fiqh, Kulliyyah of Islamic Revealed Knowledge and Human Sciences, International Islamic University Malaysia. He was also seconded to Al-Madinah International University as Deputy Rector (Academic Affairs) for two years. He has to his credit two books and a number of articles published in local and international journals. He has been a Chevening Fellow at the Oxford Centre for Islamic Studies, United Kingdom. Professor Dr Ashraf has vast experience in providing Shariah views on retail and investment banking products, sukuk structuring and unit trusts. He is also actively involved in advising Takaful and Retakaful companies. Currently, he is a member of Shariah Advisory Council, Central Bank of Malaysia and the SC. He is also a member of the National Fatwa Council of Malaysia and is currently the Chairman of the Shariah Committee of Bursa Malaysia. He also serves as Shariah Advisor to a number of Islamic Financial Institutions in Malaysia and abroad. 62

65 THE SHARIAH ADVISER (CONT D) Dr. Aida Othman Dr. Aida Othman is a Partner at Zaid Ibrahim & Co. She is also a Director with ZICO Shariah. Dr. Aida advises on Islamic banking and finance transactions and documentation; in particular, she has advised on Shariah compliance issues, structured Islamic products, Islamic financing documentation, sukuk issuance, takaful, regulatory framework for Islamic financial services, Islamic wealth management, Islamic private equity and unit trust funds. Dr. Aida holds a Doctor of Philosophy in Comparative Law & Middle Eastern Studies from Harvard University, United States of America. She also obtained her Masters of Law from Cambridge University, United Kingdom and Bachelor of Laws (First Class Honours) and Bachelor of Islamic Law (Syariah) (First Class Honours) from International Islamic University, Malaysia. Dr. Aida sits on the Shariah Advisory Board of Syarikat Takaful Malaysia Berhad. For further information on the Shariah Adviser, please visit our website at 63

66 9 SALIENT TERMS OF THE DEED 9.1 MEMBERS RIGHTS AND LIABILITIES A member is a person registered in the register as a holder of units or fractions of units in a fund under a PRS which automatically accord him rights and interests in the fund. A member shall be entitled to receive the distributions of the funds (if any), participate in any increase in the capital value of the units, and to other rights and privileges as are provided for in the Deed. Members are vested with the powers to call for a members meeting, and to vote for the removal of the trustee through a Special Resolution. Members who make a contribution in a PRS for the first time are entitled to a cooling-off right. Once a member has exercised the cooling-off right, the cooling-off right is no longer available for any subsequent contributions to that PRS or other PRS. This cooling-off right, however, shall not extend to the staff of Public Mutual and persons registered to deal in PRS. In addition, members shall receive annual and interim reports of the funds which are sent out within 2 months from the close of each financial year or period. No member shall be entitled to require the transfer to him of any of the assets comprised in the funds or be entitled to interfere with or question the exercise by the trustee or the PRS Provider on his behalf of the rights of the trustee as owner of such assets. No members shall by reason of the provisions of the Deed and the relationship created thereby between the members, the trustee and the PRS Provider be liable for any amount in excess of the purchase price paid for the unit, and shall not be under any obligation to indemnify the trustee and/or the PRS Provider in the event that the liabilities incurred by the trustee and the PRS Provider in the name of or on behalf of the funds pursuant to and/ or in the performance of the provisions of the Deed exceed the assets of the funds, and any right of indemnity of the trustee and/or PRS Provider will be limited to recourse to the funds. 9.2 MAXIMUM FEES AND CHARGES PERMITTED BY THE DEED Fund PRS-IGRF PRS-IMDF PRS-ICVF PRS-ISEQF Management fee Up to 3% per annum of the NAV. Trustee fee Up to 0.06% per annum, calculated daily on the NAV, but subject to a minimum fee or maximum fee per annum as shall be agreed between the PRS Provider and trustee. Up to 0.05% per annum, calculated daily on the NAV, but subject to a minimum fee or maximum fee per annum as shall be agreed between the PRS Provider and trustee. Up to 0.04% per annum, calculated daily on the NAV, but subject to a minimum fee or maximum fee per annum as shall be agreed between the PRS Provider and trustee. Up to 0.04% per annum, calculated daily on the NAV, but subject to a minimum fee or maximum fee per annum as shall be agreed between the PRS Provider and trustee. Sales charge Redemption charge Switching fee Up to 5% of the NAV per unit. Up to 3% of NAV per unit. Not exceeding 5% of the NAV per unit but subject to a minimum fee of RM25 per transaction. A lower fee and/or charges than what is stated in the Deed may be charged. All current fees and charges are disclosed in the Disclosure Document. 64

67 SALIENT TERMS OF THE DEED (CONT D) Any increase of the fees and/or charges above that is stated in the current Disclosure Document may be made provided that a supplemental Disclosure Document is issued and the maximum stated in the Deed shall not be breached. Any increase of the fees and/or charges above the maximum stated in the Deed shall require members approval. All the above fees and charges are subject to GST. The PRS Provider shall charge and the member shall pay the amount of GST imposed on any transaction requested by the member. 9.3 PERMITTED EXPENSES PAYABLE OUT OF THE FUNDS Only expenses directly related and necessary in operating and administering a fund may be paid out of the fund. The major expenses that are recoverable directly from the funds include: (i) commissions and/or fees paid to brokers/dealers in effecting dealings in the fund s property, shown on the contract notes or confirmation notes or difference accounts; (ii) (where the foreign custodial function is delegated by the trustee), charges/fees paid to the sub-custodian; (iii) tax and other duties charged on that fund by the government and other authorities if any and bank fees; (iv) the fees and other expenses properly incurred by the auditor; (v) remuneration and out of pocket expenses of the independent members of the investment committee and/ or the members of the Shariah committee or advisers (if any) of that fund, unless the PRS Provider decides to bear the same; (vi) fees for valuation of any investment of that fund by independent valuers for the benefit of that fund under the Scheme; (vii) costs incurred for the modification of this Deed other than those for the benefit of the PRS Provider or trustee; (viii) costs incurred for any meeting of members other than those convened by, or for the benefit of the PRS Provider or trustee; (ix) the sale, purchase, insurance, custody and any other dealings of investments including commissions and/or fees paid to brokers; (x) costs involved with external specialists approved by the trustee in investigating and evaluating any proposed investment; (xi) the engagement of valuers, advisers and contractors of all kinds; (xii) preparation and audit/review of the taxation returns and accounts of that fund; (xiii) winding-up of that fund and the retirement or removal of the trustee or PRS Provider and the appointment of a new trustee or PRS provider; (xiv) any proceedings, arbitration or other dispute concerning that fund or any asset, including proceedings against the trustee or the PRS Provider or by either of them for the benefit of that fund (except to the extent that legal costs incurred for the defense of either of them are not ordered by the court to be reimbursed out of that fund); (xv) costs of obtaining experts opinion by the trustee and the PRS Provider for the benefit of the fund; (xvi) the costs of printing and dispatching to members the accounts of the funds, tax certificates, distribution warrants, notices of meeting of members, newspaper advertisement and such other similar costs as may be approved by the relevant trustee; and (xvii) any other expenses properly incurred by the trustee in the performance of its duties and responsibilities. 9.4 RETIREMENT AND REPLACEMENT OF THE PRS PROVIDER The PRS Provider must retire as the PRS provider of the Scheme when required to retire by law. The PRS Provider may retire by giving 12 months notice to the trustee or any shorter notice the trustee accepts provided always that any such retirement shall not be effective or valid if the SC has decided under the CMSA 2007 not to withdraw the approval of the PRS Provider as a PRS provider of the Scheme. The trustee shall take all necessary steps to replace the PRS Provider, if: (i) the PRS Provider goes into liquidation (except for the purpose of amalgamation or reconstruction or some similar purpose) or if a receiver or judicial manager is appointed in respect of any of their assets or if any encumbrancer shall take possession of any of their assets; or 65

68 SALIENT TERMS OF THE DEED (CONT D) (ii) (iii) (iv) unless expressly directed otherwise by the SC, if the PRS Provider has ceased to be eligible to be a private retirement scheme provider under the CMSA 2007; or unless expressly directed otherwise by the SC, if the trustee is of the opinion that the PRS Provider has, to the prejudice of the members, failed to comply with any provision or covenant herein or contravened any of the provisions of the CMSA 2007; or if the PRS Provider has failed or neglected to carry out its duties to the satisfaction of the trustee and the trustee considers that it would be in the interests of the members to do so, after the trustee has given reasonable notice to the PRS Provider of that opinion and the reasons for that opinion, and has considered any representations made by the PRS Provider in respect of that opinion, and after consultation with the SC. In any of the cases aforesaid all such replacement shall be subject to the prior approval of the SC and the PRS Provider shall upon notice by the SC cease to be the PRS provider. On the retirement or replacement of the PRS Provider, the trustee shall by writing under its seal appoint some other corporation already approved by the SC to be the PRS provider for the Scheme to act upon and subject to such corporation entering into such deed or deeds as the trustee may be advised to be necessary or desirable to be entered into by such corporation in order to secure the due performance of its duties as a PRS provider and be bound by the provisions herein which deed shall provide that the new PRS provider to be appointed thereunder shall purchase from the retiring PRS Provider all units held by the PRS Provider of which they are the member or deemed to be the member at the redemption price referred to in the Deed. 9.5 RETIREMENT, REMOVAL AND REPLACEMENT OF THE TRUSTEE The trustee shall retire as trustee of the Scheme when required to retire by law. The trustee may retire by giving 12 months notice to the PRS Provider or any shorter notice the PRS Provider and the trustee shall agree which shall in any event not be less than 3 months provided always that the trustee shall and hereby undertakes that it shall act as trustee of the Scheme until a new/replacement trustee for the Scheme is appointed and has taken office as the Scheme s trustee. The PRS Provider shall take the necessary steps to call a meeting of members of the Scheme to remove the trustee where the PRS Provider becomes aware that: (i) (ii) (iii) (iv) (v) (vi) (vii) the trustee ceased to exist or carry on business; the trustee has not been validly appointed; the trustee ceases to be approved by the SC to be a trustee for PRS; the trustee is not or has ceased to be eligible to be appointed or to act as trustee under the law for the time being applicable; the trustee has failed or refused to act as trustee in accordance with the provisions and covenants of this Deed or the CMSA 2007 or the SC Guidelines; the trustee shall go into liquidation or if a receiver is appointed over the whole or substantial part of the assets or undertaking of the trustee and has not ceased to act under that appointment or a petition has been presented for the winding up of the trustee (other than for the purpose of and followed by a amalgamation or reconstruction, unless during or following such amalgamation or reconstruction the trustee becomes or is declared insolvent); or the trustee is under investigation for conduct that contravenes the Trust Companies Act 1949, the Trustee Act 1949, the Companies Act 1965 or any securities law. At any such members meeting to remove the trustee, a Special Resolution of the members of the Scheme voting at the meeting duly convened in accordance with the Deed is required to remove the trustee. 66

69 SALIENT TERMS OF THE DEED (CONT D) 9.6 TERMINATION OF THE SCHEME OR FUNDS UNDER A SCHEME Prior approval of the SC is required before a Scheme may be terminated. A fund under a Scheme may be terminated or wound-up upon the occurrence of any of the following events:- (a) The SC s approval for the PRS is withdrawn under sub-sections 139X(1) or 139X(2) of the CMSA 2007; (b) The SC s authorisation for the fund is revoked under clause 7.10 of the SC Guidelines; (c) A Special Resolution is passed at a members meeting to wind up the non-core fund; (d) The fund has reached its maturity date as specified in the deed; and (e) The effective date of an approved transfer scheme has resulted in the non-core fund, which is the subject of the transfer scheme, being left with no asset or property. 9.7 MEMBERS MEETING A members meeting may be called by the PRS Provider, trustee and/or members. Any such meeting must be convened in accordance with the Deed and/or the SC Guidelines. Voting is by a show of hands, unless a poll is duly demanded or the resolution proposed is required by this Deed or by law to be decided by a percentage of all units. At any meeting of members of the fund or the Scheme, as the case may be, save and except for a resolution for the winding-up of the non-core fund, each member present in person or by proxy has one vote on a show of hands, regardless of its NAV per unit. On a poll save and except for a resolution for the winding-up of the non-core fund, each member of the fund or the Scheme, as the case may be, present in person or by proxy has one vote for each whole fully paid unit held regardless of its NAV per unit. The quorum for a meeting of members of a fund or the Scheme, as the case may be, is 5 members of that fund or the Scheme, as the case may be, present in person or by proxy, provided that for a meeting which requires a Special Resolution the quorum for that meeting shall be 5 members of the fund or the Scheme, as the case may be, whether present in person or by proxy, holding in aggregate at least 25% of the units in issue for that fund or the Scheme, as the case may be, at the time of the meeting. If the fund or the Scheme, as the case may be, has 5 or less members, the quorum required shall be 2 members of that fund or the Scheme, as the case may be, whether present or by proxy and if the meeting requires a Special Resolution the quorum for that meeting shall be 2 members of the fund or the Scheme, as the case may be, whether present in person or by proxy, holding in aggregate at least 25% of the units in issue for that fund or the Scheme, as the case may be, at the time of the meeting. 9.8 WITHDRAWALS Only upon all terms and conditions as set out under the vesting schedule and/or the SC Guidelines for any withdrawal having been met and fulfilled and subject to the member having furnished to the PRS Provider all such documentary evidence as the PRS Provider may require and the receipt by the PRS Provider of the authorisation from the PPA having been obtained, where required, a member may give the PRS Provider a withdrawal request specifying the name of the relevant fund in which units are held and the number of units to be redeemed, subject to such minimum number of units per withdrawal as the PRS Provider shall determine from time to time and disclosed in the Disclosure Document. The PRS Provider must pay the member or for the account of the member, as the case may be, cash for the withdrawal of units within such time as specified in the SC Guidelines. A withdrawal by a member may be subject to such condition(s), restriction(s) or limit(s) as may be set out in the Disclosure Document and/or the SC Guidelines, which may include but not be limited to the following in relation to all units other than conditionally vested units:- (a) (b) subject to permitted reasons for withdrawals, a member may not make a withdrawal from a fund under the Scheme until that member reaches the retirement age. Upon reaching the retirement age, a member shall be entitled to withdraw the full amount accumulated in all funds under the Scheme held by the member as accrued benefits without payment of any tax; and at any time before the reaching of the retirement age, a member may by making a request to the PPA or PRS Provider (in such form and within such time limits as may be required) request for withdrawal, subject to the payment of a redemption charge and/or tax penalty, from the Sub-Account B established and maintained by the PRS Provider for that member in accordance with the SC Guidelines. 67

70 SALIENT TERMS OF THE DEED (CONT D) A member holding a conditionally vested unit shall not be permitted to withdraw such conditionally vested unit for any reason whatsoever. However, an employer may withdraw conditionally vested units for its employee(s) or previous employee(s) who are members under the Scheme in accordance with the vesting schedule. 9.9 SWITCHING AND TRANSFER OF UNITS The manner of making a switch request and the conditions for a member to switch an investment in a fund to another fund under the Scheme or any other fund under another PRS managed by the PRS Provider are set out in the Disclosure Document and/or the SC Guidelines. A switching fee, which shall be payable to the PRS Provider, not exceeding the rate as specified in the Deed, is chargeable on any switching transaction. The PRS Provider shall have the right to suspend, restrict, disallow and/or refuse any switching of units for any of the funds at its absolute discretion and/or where required to do so by the PPA under the SC Guidelines, where applicable. Members may withdraw his units and transfer all or part of his monies from such withdrawal to another PRS provider as defined in the CMSA Transfer must be in a form approved by the PRS Provider and may be subject to such costs and expenses as determined by the PRS Provider from time to time and disclosed in the Disclosure Document. A transfer by a member may be subject to such condition(s), restriction(s) or limit(s) as may be set out in the Disclosure Document and/or the SC Guidelines. An administrative fee in relation to transfer may be charged by the PRS Provider as set out in the Disclosure Document. The PRS Provider shall have the right to suspend, restrict, disallow and/or refuse to register any transfer of a unit in its absolute discretion. The PRS Provider may also refuse to make an entry of transfer during the 14 Business Days preceding the close of the register for any purpose. That member shall be fully and solely liable for any taxes or penalty(ies) payable, fees payable to the PPA and/or all costs and expenses in relation thereto. A member holding a conditionally vested unit shall not be permitted to transfer such conditionally vested unit to another PRS provider THE DEED Copies of the Deed may be obtained from the PRS Provider at a cost of RM20 each or may be inspected free of charge during normal working hours at the offices of the PRS Provider. All members of units will be entitled to the benefit of, be bound by and be deemed to have notice of the provisions of the Deed, copies of which are available as mentioned above. 68

71 CONDITIONS OF APPROVAL OF THE SCHEME AND AUTHORISATION OF THE CORE FUNDS BY THE SC The approval and authorisation by the SC for the establishment of the Scheme and its core funds respectively on 17 July 2012 are subject to the following conditions: PRS-ICVF must comply with the following prohibitions and requirements at all times: (a) Investments in debentures/fixed income instruments must be rated at least BBB3/P2 by RAM (or equivalent rating by MARC). However, debentures/fixed income instruments which are rated below BBB3/P2 and/or are unrated, may comprise up to 5% of PRS-ICVF s NAV (the 5% limit). In the event the 5% limit is exceeded, whether as a result of: (i) (ii) (iii) a downgrade of any debenture/fixed income instrument to below BBB3/P2; an increase in the aggregate value of debentures/fixed income instruments which are rated below BBB3/P2 and/or are unrated; or a decrease in the NAV of PRS-ICVF, Public Mutual must reduce such investments to comply with the 5% limit unless in the opinion of the trustee, the disposal of such investments is not in the best interest of members; (b) (c) (d) (e) (f) Use of derivatives is for hedging purposes only; No investments in warrants except as a result of PRS-ICVF s holdings in equities; No investment in products with embedded derivatives; No exposure to foreign currency; and No investments in RM-denominated foreign debentures/fixed income instruments. 69

72 TAXATION OF THE FUNDS AND MEMBERS Public Mutual Berhad Block B, Sri Damansara Business Park Persiaran Industri Bandar Sri Damansara Kuala Lumpur 4 May 2017 Dear Sirs Re: Taxation of the Private Retirement Scheme Funds and Members This letter has been prepared for the inclusion in this Replacement Disclosure Document of Public Mutual Private Retirement Scheme (PRS) Shariah-based Series dated 26 May 2017 in connection with the offer of units in the Private Retirement Scheme ( the PRS ) which comprise the following Private Retirement Scheme Funds ( the Funds ):- Public Mutual PRS Islamic Growth Fund; Public Mutual PRS Islamic Moderate Fund; Public Mutual PRS Islamic Conservative Fund; and Public Mutual PRS Islamic Strategic Equity Fund. Taxation of the Funds The Funds are offered under the PRS approved by the Securities Commission ( SC ) in accordance with the Capital Markets and Services Act The PRS is an approved scheme for Malaysian income tax purposes pursuant to Section 2 of the Malaysian Income Tax Act, 1967 ( the Act ). Thus, the income of the Funds is exempt from tax under Paragraph 20, Schedule 6 of the Act. Under Section 2(7) of the Act, any reference to interest in the Act shall apply, mutatis mutandis, to gains or profits received and expenses incurred, in lieu of interest, in transactions conducted in accordance with the principles of Shariah. The Funds may receive dividends, interest (or profit) and other income as well as gains from investments outside Malaysia and such income may be subject to tax in the country from which it is derived. Single tier dividends received by the Funds are exempt from tax and no longer carry with them any tax credit. Thus, there will not be any tax refund from the single tier dividends received by the Funds. Goods and Services Tax ( GST ) GST has been implemented with effect from 1 April 2015 to replace the Sales Tax and Service Tax. The GST prevailing rate is 6%. The issue, holding or redemption of any unit under a trust fund is regarded as an exempt supply. The investment activities of the Funds such as buying and selling of securities are exempt supplies and thus not subject to GST. Thus, if the Funds are just making such exempt supplies, it is not required to be registered for GST. However, certain expenses incurred by the Funds such as fund manager s fees, trustee fees and professional fees will be subject to GST at a standard rate if the service providers are registered persons. If the Funds are just making exempt supplies, any input tax incurred by the Funds for the aforementioned expenses are not claimable. Real Property Gains Tax ( RPGT ) Gains on disposal of investments by the Funds will not be subject to income tax in Malaysia. However, such gains may be subject to RPGT in Malaysia, if the gains are derived from sale of Malaysian real properties and shares in Malaysian real property companies. Such gains would be subject to RPGT at the applicable rate depending on the holding period of the chargeable assets. 70

73 TAXATION OF THE FUNDS AND MEMBERS (CONT D) Taxation of Members Employers Employers who make contributions to the Funds on behalf of their employees, resident or non resident in Malaysia, are allowed to claim a tax deduction against their business income for the contributions made. However, the allowable tax deduction is, together with contributions made to any other approved scheme (such as Employees Provident Fund), restricted to 19% of the employees remuneration based on the existing Malaysian tax laws. Taxation of Members The unit holders or members are taxed on an amount equivalent to their share of the total taxable income of the Funds, to the extent that this is distributed to them. However, since the income of the Funds is exempt from Malaysian income tax, the income distributed from the Funds to the members should be exempted from Malaysian income tax as well. Individual members who are resident in Malaysia and who have made contributions to the Funds during the basis year for a Year of Assessment ( YA ) are allowed to claim a tax relief on the amount of the contributions made to the Funds together with any deferred annuity payment made, subject to a maximum amount of RM3,000 for a YA, for a period of ten years from the YA 2012 to YA Units split by the Funds will be exempt from tax in the hands of the members. Members who make withdrawals from the Funds before reaching the age of 55 (other than by reason of permanent total disablement, serious disease, mental disability, death or permanently leaving Malaysia) would be subject to a tax at the rate of 8% on the amount withdrawn. The PRS provider or manager must deduct the 8% withholding tax on the withdrawal amounts before making payment to the members. The following gains or income received by the members are not subject to GST:- the distribution of income from the Funds to the members which may comprise of dividends, interest income and gains from realisation of investments; distribution of foreign income from the Funds; unit split by the Funds and reinvestment of distribution; and gain made from selling or redemption of units. Any fee based charges in relation to buying of the units and transferring of units should be subject to GST if the supplier is GST registered. The tax position is based on Malaysian tax laws and rules made by the relevant authorities as they stand at present. Prospective investors should not treat the contents of this letter as advice relating to taxation matters and are advised to consult their own professional advisers concerning their respective investments. Yours faithfully Ong Guan Heng Executive Director KPMG Tax Services Sdn Bhd 71

74 DIRECTORY OF PUBLIC MUTUAL BRANCH OFFICES AND CUSTOMER SERVICE CENTRES Head Office Blok B, Sri Damansara Business Park, Persiaran Industri, Bandar Sri Damansara, Kuala Lumpur. : : : : Mutual Gold Centre No. 1 & 3, 3 rd Floor, Jalan Solaris 1, Solaris Mont Kiara, Kuala Lumpur. : : Financial Planning Centre 15 th Floor, Bangunan PBB, No. 6 Jalan Sultan Sulaiman, Kuala Lumpur. : : Branches and Customer Service Centres West Malaysia Northern Region Alor Star 1888A & 1888B, Jalan Stadium, Alor Star, Kedah. : : Senior Branch Manager: Khaw Bee Ruh Ipoh 37 & 39, Persiaran Greentown 4, Greentown Business Centre, Ipoh, Perak. : : Senior Branch Manager: Foong Kuan Mun Sungai Petani 9D & 9E, Jalan Kampung Baru, Sungai Petani, Kedah. : : Branch Manager: Annie Ong Sok Nee Butterworth 4223, Jalan Bagan Luar, Butterworth, Penang. : : Senior Branch Manager: Charmane Chew Hui Hsia Penang 16, Lintang Burma, Pulau Tikus, Penang. : : Senior Branch Manager: Vincent Seow Weng Sim Bukit Mertajam , 2 nd Floor, Jalan Che Bee Noor, Bukit Mertajam, Seberang Prai Tengah, Penang. : : Branch Manager: Cheryl Oon Lay Pheng Central Region 1 Utama Shopping Centre Lot LG-313-E, 1 Lebuh Bandar Utama, Bandar Utama City Centre, Bandar Utama, Petaling Jaya, Selangor. : : Bangsar 11, 15 & 17, Jalan Bangsar Utama 3, Bangsar Utama, Kuala Lumpur. : : Senior Branch Manager: Chooi Chan Yen Cheras 44-2, 44-3, 44-4 & 34-2, Cheras Commercial Centre, Jalan 5/101C, Off Jalan Kaskas, Cheras, Kuala Lumpur. : : Senior Branch Manager: Khoo Peng Seng Klang 28, 30 & 32, Lorong Batu Nilam 3B, Bandar Bukit Tinggi, Klang, Selangor. : : Branch Manager: Ng Tong Chia 72

75 DIRECTORY OF PUBLIC MUTUAL BRANCH OFFICES AND CUSTOMER SERVICE CENTRES (CONT D) Central Region (cont d) Damansara Perdana 1 & 3, Jalan PJU 8/5 I, Perdana Business Centre, Bandar Damansara Perdana, Petaling Jaya, Selangor. : : Senior Branch Manager: Ong Chen Hung Puchong 39 & 41, Jalan Puteri 1/4, Bandar Puteri Puchong, Puchong, Selangor. : : Branch Manager: Bryan Koh Yi Earl Shah Alam 54 & 56, Jalan Pahat G15/G, Kompleks Otomobil, Persiaran Selangor, Seksyen 15, Shah Alam, Selangor. : : Branch Manager: Eric Ng Swee Huat Southern Region Batu Pahat 119, Jalan Chengal, Taman Makmur, Batu Pahat, Johor. : : Branch Manager: Rui Lee Chong Siew Kluang 3, Jalan Dato Teoh Siew Khor, Kluang, Johor. : : Branch Manager: Tan Kheng Aun Muar 46, Jalan Sayang, Muar, Johor. : : Branch Manager: Angie Ng Seow Mai Johor Bahru B-19, Jalan Molek 1/5A, Taman Molek, Johor Bahru, Johor. : : Senior Branch Manager: Teng Lee Yen Melaka No. 929 & 930, Jalan Merdeka, Taman Melaka Raya, Melaka. : : Senior Branch Manager: Carl Wong Yon Lian Seremban 1A & 1B, Jalan Tuanku Munawir, Seremban, Negeri Sembilan. : : Branch Manager: Michael Wong Cheong Tee East Coast Region Kota Bharu PT304 dan PT305, Jalan Kebun Sultan, Kota Bharu, Kelantan. : : Branch Manager : Puan Abiesharni Abdul Kadir Kuantan 71 & 73, Jalan Haji Abdul Aziz, Kuantan, Pahang. : : Branch Manager : Sharon Ting Mooi Choon 73 Kuala Terengganu 1-C, Jalan Air Jernih, Kuala Terengganu, Terengganu. : : Branch Manager: Wee Suat Hwee Temerloh 10, 11 & 12, 2 nd Floor, Jalan Ahmad Shah, Bandar Sri Semantan, Temerloh, Pahang. : : Branch Manager: Agnes Choong Lee Yoon

76 DIRECTORY OF PUBLIC MUTUAL BRANCH OFFICES AND CUSTOMER SERVICE CENTRES (CONT D) East Malaysia Sabah Kota Kinabalu Lot , Ground & 1 st Floor, Lorong Api-Api 1, Api-Api Centre, Kota Kinabalu, Sabah. : /2 7 : Branch Manager: Lim Shaw Siang Sandakan Lot 16, Block B, Ground Floor, Bandar Maju Commercial Centre, Mile 1.5, North Road, Sandakan, Sabah. Postal Address: Public Mutual Berhad, Sandakan Branch, P.O. Box No. 3488, Sandakan, Sabah. : : Senior Branch Manager: Jonathan Yong Lok Sang Tawau TB 4437, Lot 28, Block D, Sabindo Square, Jalan Dunlop, Tawau, Sabah. : : Branch Manager: Janice Chong Mui Lin Sarawak Bintulu 4, Lot 2646, Jalan Tun Ahmad Zaidi, Bintulu, Sarawak. : : Branch Manager: Lilian Lo Fui Ping Miri Lot 1380 (Ground & 1 st Floor) & Lot 1381 (1 st Floor), Block 10, Center Point Commercial Centre, Phase II, Jalan Kubu, Miri, Sarawak. : : Branch Manager: Allan Ngo Say Khiang Kuching Lot 205 & 206, Seksyen 49, Jalan Tunku Abdul Rahman, Kuching, Sarawak. : : Senior Branch Manager: Jones Chen Chung Sze Sibu 10, Lorong 2, Jalan Tuanku Osman, Sibu, Sarawak. : : Branch Manager: Wayne Moh Yuon Fat Public Mutual offices are open on Mondays to Fridays, except public holidays, from 9:00 a.m. to 5:00 p.m. 74

77 DIRECTORY OF PUBLIC MUTUAL AGENCY OFFICES Penang (Bayan Baru) Liang Wing Sim Agency Office 104, 1 st Floor, Jalan Mayang Pasir, Taman Sri Tunas, Bayan Baru, Bayan Lepas, Penang. : /1 : Sarawak (Sarikei) Ling Chai Kua Agency Office No.43, 1 st Floor, Jalan Masjid Lama, Sarikei, Sarawak. : :

78 DISTRIBUTION POINTS OF INSTITUTIONAL PRS ADVISER Units of the funds can be bought or sold at the branches of the following IPA: Public Bank Berhad (6463-H) Menara Public Bank 146, Jalan Ampang Kuala Lumpur : / : : : 76

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