INFORMATION MEMORANDUM FOR AFFIN HWANG CONSTANT CASH FUND

INFORMATION MEMORANDUM FOR AFFIN HWANG CONSTANT CASH FUND Manager : Affin Hwang Asset Management Berhad (formerly known as Hwang Investment Management Berhad) (429786 T) Trustee : Deutsche Trustees Malaysia Berhad (763590 H) This Information Memorandum is dated 3 August 2015. The Affin Hwang Constant Cash Fund was constituted on 3 August 2015. *The constitution date of this Fund is also the launch date of this Fund. INVESTORS ARE ADVISED TO READ AND UNDERSTAND THE CONTENTS OF THE INFORMATION MEMORANDUM AND OBTAIN PROFESSIONAL ADVICE BEFORE SUBSCRIBING TO THE UNITS OF THE FUND. IF IN DOUBT, PLEASE CONSULT A PROFESSIONAL ADVISER. FOR INFORMATION CONCERNING CERTAIN RISK FACTORS WHICH SHOULD BE CONSIDERED BY PROSPECTIVE INVESTORS SEE RISK FACTORS COMMENCING ON PAGE 12. 1

This Information Memorandum has been seen and approved by the directors of Affin Hwang Asset Management Berhad (formerly known as Hwang Investment Management Berhad) and they collectively and individually accept full responsibility for the accuracy of all information contained herein and confirm, having made all enquiries which are reasonable in the circumstances, that to the best of their knowledge and belief, there are no other facts omitted which would make any statement herein misleading. The Securities Commission Malaysia has authorized the Fund, which is the subject of this Information Memorandum, and the authorization shall not be taken to indicate that the Securities Commission Malaysia recommends the investment. The Securities Commission Malaysia will not be liable for any non disclosure on the part of Affin Hwang Asset Management Berhad (formerly known as Hwang Investment Management Berhad) and takes no responsibility for the contents of the Information Memorandum, makes no representation as to its accuracy or completeness and expressly disclaims any liability whatsoever for any loss howsoever arising from, or in reliance upon the whole or any part of the contents of this Information Memorandum. INVESTORS SHOULD RELY ON THEIR OWN EVALUATION TO ASSESS THE MERITS AND RISKS OF THE INVESTMENT. IN CONSIDERING THE INVESTMENT, INVESTORS WHO ARE IN DOUBT ON THE ACTION TO BE TAKEN SHOULD CONSULT PROFESSIONAL ADVISERS IMMEDIATELY. This Information Memorandum is not intended to and will not be issued and distributed in any country or jurisdiction other than in Malaysia ( Foreign Jurisdiction ). Consequently, no representation has been and will be made as to its compliance with the laws of any Foreign Jurisdiction. Accordingly, no issue or sale of Units of the Fund to which this Information Memorandum relates, is made in any Foreign Jurisdiction or under any circumstances, where such action is unauthorised. 2

\CONTENTS Section Page 1. CORPORATE DIRECTORY... 5 2. GLOSSARY... 6 3. KEY DATA... 9 4. RISK FACTORS... 12 4.1 General Risks... 12 4.2 Specific Risks... 12 4.3 Risk Management... 13 5. FUND DETAILS... 15 5.1 General Information... 15 Investment Objective... 15 Investors Profile... 15 Performance Benchmark... 15 5.2 Asset Allocation... 15 5.3 Investment Strategies... 15 5.4 Permitted Investments... 16 5.5 Investment Limits... 16 5.6 Valuation of Assets... 16 5.7 Valuation Point for the Fund... 16 5.8 Policy on Gearing and Minimum Liquid Assets Requirements... 17 5.9 Distribution Policy... 17 6. FEES & CHARGES... 18 6.1 Sales Charge... 18 6.2 Repurchase Charge... 18 6.3 Transfer Fee... 18 6.4 Switching Fee... 18 6.5 Annual Management Fee... 18 6.6 Annual Trustee Fee... 18 6.7 Fund Expenses... 18 6.8 Goods and Services Tax... 19 6.9 Policy on Stockbroking Rebates and Soft Commissions... 19 7. SALE AND PURCHASE OF UNITS... 20 7.1 Computation of NAV and NAV per Unit... 20 7.2 Pricing of Units... 21 7.3 Sale of Units... 22 7.4 Minimum Holding of Units... 22 7.5 Repurchase of Units... 23 7.6 Payment of Repurchase Proceeds... 23 7.7 Repurchase Frequency and Minimum Units Repurchased... 23 7.8 Transfer Facility... 23 7.9 Switching Facility... 23 7.10 Where to Purchase and Repurchase... 24 7.11 Unclaimed Moneys... 24 7.12 Anti Money Laundering Policies and Procedures... 24 3

8. SALIENT TERMS OF THE DEED... 25 8.1 Rights and Liabilities of Unit Holders... 25 Rights of Unit Holders... 25 Liabilities of Unit Holders... 25 8.2 Provisions regarding Unit Holders Meetings... 25 Unit Holders Meeting convened by the Unit Holders... 25 Unit Holders Meeting convened by the Manager or Trustee... 26 Quorum Required for Convening a Unit Holders Meeting... 26 8.3 Termination of the Fund... 26 Circumstances that may lead to the termination of the Fund... 26 8.4 The maximum fees and charges that may be imposed by the Manager and the steps to be taken by the Manager to increase such fees and charges.... 26 9. CLIENT COMMUNICATION... 28 10. RELATED INFORMATION... 29 10.1 Role of the Manager... 29 10.2 The Investment Team of the Manager... 29 10.3 Background Information of the Trustee... 30 10.4 Duties and Responsibilities of the Trustee... 30 11. DIRECTORY OF SALES OFFICE... 31 4

1. CORPORATE DIRECTORY The Manager Affin Hwang Asset Management Berhad (formerly known as Hwang Investment Management Berhad) (429786 T) Registered Office 27 th Floor, Menara Boustead, 69 Jalan Raja Chulan 50200 Kuala Lumpur Business Address Suite 11 01, 11th Floor Menara Keck Seng 203 Jalan Bukit Bintang 55100 Kuala Lumpur Tel No. : (603) 2116 6000 Fax No. : (603) 2116 6100 Toll free line : 1 800 88 7080 E mail : customercare@affinhwangam.com Website : www.affinhwangam.com Board of Directors of the Manager Tan Sri Dato Seri Che Lodin Bin Wok Kamaruddin Ms Maimoonah Binti Mohamed Hussain YBhg Mej Jen Dato Hj Latip Bin Ismail (Independent Director) Mr Teng Chee Wai Mr David Semaya Mr Abd Malik Bin A Rahman (Independent Director) Manager s Delegate (fund valuation & accounting function) Deutsche Bank (Malaysia) Berhad (312552 W) Business Address Level 18 20, Menara IMC 8, Jalan Sultan Ismail 50250 Kuala Lumpur Tel No. : (603) 2053 6788 Fax No. : (603) 2031 9822 The Trustee Deutsche Trustees Malaysia Berhad (763590 H) Registered & Business Address Level 20, Menara IMC 8, Jalan Sultan Ismail 50250 Kuala Lumpur Tel No. : (603) 2053 7522 Fax No. : (603) 2053 7526 Trustee s Delegate (Local and Foreign Custodian) Deutsche Bank (Malaysia) Berhad (312552 W) Business Address Level 18 20, Menara IMC 8, Jalan Sultan Ismail 50250 Kuala Lumpur Tel No. : (603) 2053 6788 Fax No. : (603) 2031 8710 Company Secretaries Azizah Shukor(LS0008845) 27 th Floor Menara Boustead 69 Jalan Raja Chulan 50200 Kuala Lumpur Wilayah Persekutuan Tax Adviser Deloitte Tax Services Sdn. Bhd. Level 16, Menara LGB 1 Jalan Wan Kadir Taman Tun Dr Ismail 60000 Kuala Lumpur Auditor PricewaterhouseCoopers Level 10, 1 Sentral, Jalan Travers, KL Sentral P.O. Box 10192 50706 Kuala Lumpur Banker HSBC Bank (M) Berhad Head Office 2, Leboh Ampang 50100 Kuala Lumpur Solicitors Messrs. Soon Gan Dion & Partners 1 st Floor, No. 73, Jalan SS 21/1A Damansara Utama 47400 Petaling Jaya FiMM Federation of Investment Managers Malaysia 19 06 01, 6 th Floor, Wisma Tune 19, Lorong Dungun, Damansara Heights 50490 Kuala Lumpur Tel No. : (603) 2093 2600 Fax No. : (603) 2093 2700 Email: info@fimm.com.my Website: www.fimm.com.my Agents Registered unit trust consultants and other approved Institutional Unit Trust Advisers (as and when appointed) of the Manager. 5

2. GLOSSARY the Act or CMSA 2007 Board Bursa Malaysia Business Day Commencement Date Deed(s) FiMM Means the Capital Markets and Services Act 2007 as originally enacted and amended or modified from time to time. The Board of Directors of the Manager. Means the stock exchange managed and operated by Bursa Malaysia Securities Berhad including such other name as it may be changed to from time to time. A day on which the Bursa Malaysia is open for trading. The Manager may declare certain Business Days a non Business Day when deemed necessary, such as in the event of market disruption. Means the date of this Information Memorandum and is the date on which sales of Units of the Fund may first be made. The Commencement Date is also the date of constitution of the Fund. Refers to the Deed dated 27 th July 2015 entered into between the Manager and the Trustee and includes any subsequent amendments and variations to the Deed. Means the Federation of Investment Managers Malaysia. Financial Institution Means (a) if the institution is in Malaysia (i) Licensed Bank; (ii) Licensed Investment Bank; or (iii) Islamic Bank; (b) if the institution is outside Malaysia, any institution that is licensed/registered/approved/authorised to provide financial services by the relevant banking regulator. Forward Pricing Fund GST Guidelines Information Memorandum Means the price of a Unit that is the Net Asset Value per Unit calculated at the next valuation point after a purchase or repurchase request, as the case may be, is received by the Manager. Refers to Affin Hwang Constant Cash Fund. Refers to the tax levied on goods and services pursuant to the Goods and Services Tax Act 2014. Guidelines on Wholesale Funds issued by the SC and as amended from time to time. Means this offer document in respect of this Fund. Islamic Bank Means a bank licensed under Islamic Financial Services Act 2013. Licensed Bank Means a bank licensed under Financial Services Act 2013. Licensed Investment Bank Means an investment bank licensed under Financial Services Act 2013. the Manager MARC Refers to Affin Hwang Asset Management Berhad (formerly known as Hwang Investment Management Berhad). Refers to Malaysia Rating Corporation Berhad. 6

Net Asset Value / NAV NAV per Unit Determined by deducting the value of all the Fund s liabilities from the value of all the Fund s assets, at the valuation point. For the purpose of computing the annual management fee and the annual trustee fee, the NAV of the Fund should be inclusive (that is, before any deduction) of the management fee and the trustee fee for the relevant day. Means the NAV of the Fund at a particular point divided by the number of Units in Circulation at the same valuation point. Qualified Investors Refers to (1) an individual whose total net personal assets, or total net joint assets with his or her spouse, exceed RM3 million or its equivalent in foreign currencies, excluding the value of the individual s primary residence; (2) an individual who has a gross annual income exceeding RM300,000.00 or its equivalent in foreign currencies per annum in the preceding twelve months; (3) an individual who, jointly with his or her spouse, has a gross annual income exceeding RM400,000.00 or its equivalent in foreign currencies in the preceding twelve months; (4) a corporation with total net assets exceeding RM10 million or its equivalent in foreign currencies based on the last audited accounts; (5) a partnership with total net assets exceeding RM10 million or its equivalent in foreign currencies; RAM (6) a unit trust scheme or prescribed investment scheme; (7) a private retirement scheme; (8) a closed end fund; (9) a company that is registered as a trust company under the Trust Companies Act 1949 [Act 100] which has assets under management exceeding RM10 million or its equivalent in foreign currencies; (10) a corporation that is a public company under the Companies Act 1965 [Act 125] which is approved by the SC to be a trustee under the Act and has assets under management exceeding RM10 million or its equivalent in foreign currencies; (11) a statutory body established by an Act of Parliament or an enactment of any State; (12) a pension fund approved by the Director General of Inland Revenue under section 150 of the Income Tax Act 1967 [Act 53]; (13) a holder of a capital markets services licence; (14) a licensed institution; (15) an Islamic Bank; (16) an insurance company licensed under the Financial Services Act 2013; (17) a takaful operator registered under the Islamic Financial Services Act 2013; (18) a bank licensee or insurance licensee as defined under the Labuan Financial Services and Securities Act 2010 [Act 704]; (19) an Islamic bank licensee or takaful licensee as defined under the Labuan Islamic Financial Services and Securities Act 2010 [Act 705]; and (20) such other investor(s) as may be permitted by the Securities Commission Malaysia from time to time and/or under the relevant guidelines for wholesale funds. Refers to RAM Rating Services Berhad. 7

Repurchase Charge Repurchase Price RM SC Sales Charge Selling Price short term Special Resolution Means a charge imposed pursuant to the Unit Holder s request for repurchase of Units of the Fund. Means the Net Asset Value per Unit payable to a Unit Holder by the Manager for a Unit pursuant to a repurchase request and it shall be exclusive of any Repurchase Charge. Means Ringgit Malaysia. Means the Securities Commission Malaysia established under the Securities Commission Act 1993. Means a charge imposed pursuant to the Unit Holder s purchase request. Means the Net Asset Value per Unit payable by the Unit Holder for the Manager to create a Unit in the Fund and it shall be exclusive of any Sales Charge. Means a period of less than three (3) years. Means a resolution passed by a majority of not less than three quarter (¾) of Unit Holders voting at a meeting of the Unit Holders. For the purpose of terminating or winding up the Fund, a Special Resolution is passed by a majority in number representing at least three quarter (¾) of the value of Units held by the Unit Holders voting at the meeting in person or by proxy. Trustee Unit or Units Units in Circulation Refers to Deutsche Trustees Malaysia Berhad. It is a measurement of the right or interest of a Unit Holder and includes a fraction of a Unit. Means Units created and fully paid for and which has not been cancelled. It is also the total number of Units issued at a particular valuation point. Unit Holder Refers to the person registered for the time being as the holder of Units of the Fund including persons jointly registered. 8

3. KEY DATA THIS SECTION IS ONLY A SUMMARY OF THE SALIENT INFORMATION ABOUT THE FUND, INVESTORS SHOULD READ AND UNDERSTAND THE WHOLE INFORMATION MEMORANDUM, BEFORE MAKING ANY INVESTMENT DECISIONS. Fund Information Page The Fund Fund Category Fund Type Base Currency Financial Year End Launch Price Qualification for Investment Investment Objective Asset Allocation Affin Hwang Constant Cash Fund Money market (Wholesale) Income Ringgit Malaysia 30 June RM1.00 This Fund is only open to Qualified Investors. The Fund aims to provide investors with a regular income stream while aiming to maintain the NAV per Unit at RM1.00. Note: Any material change to the Fund s investment objective would require Unit Holders approval. Distribution of income will be made in the form of Units only. The Fund asset allocation range is as follows: 15 15 Asset Class Money market instrument and fixed deposits with maturity period of not more than one (1) year % of NAV of the Fund Minimum of 90% to maximum of 99.8% Liquid assets Minimum of 0.2% Performance Benchmark Investment Strategy Investors Profile The Fund shall benchmark itself against the Malayan Banking Berhad Overnight Rate. Note: The risk profile of this Fund is different from the risk profile of the benchmark. The Fund will invest in money market instruments and fixed deposits with Financial Institutions with a maturity period of not more than one (1) year. The value of the Fund s placements of fixed deposits with any single Financial Institution must not exceed 50% of the Fund s NAV. Please refer to Section 5.3 for further details. Suitable for investors who: are conservative; and have short term investment horizon. 15 15 15 Specific Risks of Investing in the Fund Credit/default risk 12 9

Concentration risk Interest rate risk NAV fluctuation risk Reinvestment risk Fees and Charges This table describes the charges that you may incur directly when you buy or sell Units of the Fund. Sales Charge Not applicable 18 Repurchase Charge Switching Fee Transfer Fee Not applicable Not applicable Not applicable This table describes the fees and expenses that you may incur indirectly when you invest in the Fund. Annual Management Fee Up to 1.00% per annum of the NAV of the Fund. 18 Annual Trustee Fee Fund Expenses Up to 0.02% per annum of the NAV of the Fund. These include: Commissions or fees paid to brokers in effecting dealings in the investments of the Fund, shown on the contract notes or confirmation notes; Tax and other duties charged on the Fund by the government and/or other authorities; Costs, fee and other expenses properly incurred by the auditor appointed for the Fund; Costs, fees and expenses incurred for the valuation of any investments of the Fund by independent valuers for the benefit of the Fund; Costs, fees and expenses incurred for any modification of the Deed save where such modification is for the benefit of the Manager and/or the Trustee; Costs, fees and expenses incurred for any meeting of the Unit Holders save where such meeting is convened for the benefit of the Manager and/or Trustee; and Other fees and expenses related to the Fund. Transaction Details Minimum Initial Investment RM100,000 + 22 Minimum Units Held Minimum Additional Investment Repurchase Frequency and Minimum Units Repurchased 100,000 Units RM10,000 There is no limit in frequency of repurchase. However, the minimum repurchase amount of 10,000 Units is applicable for each repurchase application. If the repurchase request leaves a Unit Holder with less than 100,000 Units (minimum holdings) or such other amount as may be determined by the Manager, the Unit Holder is required to repurchase all the holding of Units in the Fund at the same time as the repurchase request is received by the Manager. 23 + subject to the Manager s discretion, the investor may negotiate for a lower amount or value. 10

Period of Payment of Repurchase Proceeds The Manager in consultation with the Trustee reserves the right to defer any repurchase requests if such request would adversely affect the Fund or the interest of existing Unit Holders. Within five (5) days from the day the repurchase request is received by the Manager at or before 12.00 p.m. on a Business Day. 22 Transfer Facility Transfer facility is not available for this Fund. 23 Switching Facility Distribution Policy Distribution Policy Other Information Unit Holders are allowed to switch to any other funds managed by the Manager but at its prevailing net asset value per unit of the intended fund. Please refer to Section 7.9 for further details. Subject to the availability of income, the Fund will provide Unit Holders with monthly income by way of reinvestment in the form of additional Units. Please refer to Section 5.9 for further details. 23 17 Designated Fund Manager Esther Teo Keet Ying 29 The Trustee Deutsche Trustees Malaysia Berhad 30 Unit prices and distributions payable, if any, may go down as well as up. For information concerning certain risk factors which should be considered by you, see Risk Factors commencing on page 12. You should read and understand the contents of the Information Memorandum and obtain professional advice before subscribing to the Units of the Fund. If in doubt, please consult a professional adviser. There are fees and charges involved and you are advised to consider the fees and charges before investing in the Fund. The fees, charges and expenses quoted in the Information Memorandum are exclusive of GST. The Trustee, other service providers of the Fund and us will charge GST at the prevailing rate of 6% on the fees, charges and expenses in accordance with the Goods and Services Tax Act 2014. 11

4. RISK FACTORS This section of the Information Memorandum provides you with information on the general risks involved when investing in the Fund and the specific risks associated with the assets that the Fund will be investing in. 4.1 General Risks Fund manager risk The performance of the Fund depends on the experience and expertise of the Manager to generate returns. Lack of any of the above mentioned may adversely affect the performance of the Fund. Inflation risk Inflation erodes the nominal rate of your return giving you a lower real rate of return. Inflation is thus one of the major risks to you and results in uncertainty over the future value of investments. You are advised to take note that this Fund is not constituted with the objective of matching the inflation rate of Malaysia. The Fund has a specified objective that it seeks to achieve without having regard to the inflation rate. If your investment objective is to match the inflation rate (so as not to lose your purchasing power over time), this Fund may not be suitable for you. Loan financing risk If you intend to purchase Units of this Fund by means of borrowed/ financed monies and pledging those Units as collateral for the borrowed/ financed monies, you should be aware that if the value of the Units falls below the borrowed/ financed amount, the lender may require you to provide additional forms of collateral. You should be aware that the cost of borrowing may rise if the interest rates move up especially if your borrowing is based on floating interest rates (i.e. not a fixed rate). Thus, the cost of borrowings may even be higher than any returns that you may eventually make from your investments in this Fund. Risk of non compliance This refers to the risk where the Manager does not comply with the applicable rules, laws, regulations or the Deed. Although not every non compliance will necessarily result in some losses to the Fund, there is always a risk that losses may be suffered by the Fund. For instance, if the Manager is forced to dispose off any investments of the Fund at loss to resolve the noncompliance. Notwithstanding that, the Manager has imposed stringent internal compliance controls to mitigate this risk. Operational risk This risk refers to the possibility of a breakdown in the Manager s internal controls and policies. The breakdown may be a result of human error, system failure or fraud where employees of the Manager collude with one another. This risk may cause monetary loss and/or inconvenience to you. The Manager will regularly review its internal policies and system capability to mitigate instances of this risk. Additionally, the Manager maintains a strict segregation of duties to mitigate instances of fraudulent practices amongst employees of the Manager. 4.2 Specific Risks There are specific risks associated with the assets in which the Fund will invest. These include the following: Credit/default risk The risk arises when the issuers or the Financial Insitutions of money market instruments or fixed deposits will not make timely payment of interest and/or principal amount. This may lead to default in the payment of interest and/or principal amount and ultimately the value of the Fund may be adversely affected. The management of credit risk is largely accounted for by the Manager s management of issuer specific risk. This refers to the emphasis on credit analysis conducted to determine issuer s ability to service promised payments. Concentration risk This risk arises because the Fund may have placement of fixed deposits with a single Financial Institution of not more than 50% of the Fund s NAV. The Fund is subject to the risks linked to the particular Financial Institution. The risk may be in the form of credit risk, for example, when the particular Financial Institution is not able to repay the interest and/or principal possibly due to its poor financial position. Therefore, should such risk happens, the Fund s concentrated portfolio will cause the Fund s overall value to decline to a greater degree than if the Fund was exposed to a less concentrated portfolio. 12

Interest rate risk Money market instruments ( investments ) are subject to interest rate fluctuations. Generally, movement in interest rates affects the prices inversely, for example, when interest rates rise, prices of the investments will fall. The fluctuations of the prices of the investments will also have an impact on the NAV of the Fund. This risk can largely be eliminated by holding the investments until their maturity. The Manager also manages interest rate risk by considering each investment s sensitivity to interest rate changes as measured by its duration. When interest rates are expected to increase, the Fund would then likely seek to switch to investments with lower duration that are less sensitive to interest rate changes. NAV fluctuation risk This risk arises when the NAV per Unit of the Fund fluctuates hence the NAV per Unit of the Fund may not be maintained at RM1.00. This risk may be due to the factors such as interest rate outlook where movement in interest rates affects the money market instruments ( investments ) prices inversely. For example, when interest rates rise, prices of the investments will fall. If the prices fall below the cost of the investments, this may incur losses to the Fund and the NAV of the Fund may not be maintained at RM1.00. This risk can be mitigated by holding the investments until its maturity and the Manager will monitor the investments sensitivity to interest rate changes. Liquidity of the Fund is another factor which contributes to this risk. For example, a sudden liquidation of assets due to large repurchase requests may cause the assets to be sold not in the interest of existing Unit Holders due to lower selling price of the assets. The risk can be mitigated by enhancing the liquidity of the Fund through an increase of investments in assets with maturity of not more than one (1) year. Reinvestment risk This risk arises when payment of interest from money market instruments are reinvested at a rate lower than the prevailing interest rate when the investment was initially made. The risk is more likely to take place during a declining interest rate environment and may impact the yield of the investments which is calculated based on the assumption that all interest payments made on the investments are reinvested at the same interest rate when the investments were first made. The Manager will mitigate this risk by closely monitoring the interest rate movements. 4.3 Risk Management In the Manager s day to day running of the business, the Manager employs a proactive risk management approach to manage portfolio risks and operational risks. The Board has established a risk management committee (RMC) to oversee the Manager s risk management activities both at operational level and at portfolio management level to ensure that the risk management process is in place and functioning. The RMC comprises of at least three Board members and is chaired by an independent director. At the executive level, the Manager has established an executive risk management committee (ERMC) to identify, evaluate and monitor risks as well as to formulate internal control measures to prevent the exposure to risks that may affect the performance of the Fund, returns of the Fund or Unit Holders interest within a clearly defined framework and is primarily responsible for ensuring that the policies and procedures that have been implemented are reviewed on an on going basis with periodic assessments. The ERMC reports to the RMC on a quarterly basis. As part of its portfolio management process, the Manager engages a stringent screening process by conducting fundamental analysis of economic, political and social factors to evaluate their likely effects on the performance of the markets and sectors and any risks associated with them. Regular meetings are held to discuss investment strategy and portfolio decisions taken at the meetings are then implemented according to the investment guidelines and risks tolerance, which also take into account requirements for minimum portfolio diversification across individual investment holdings (based on the portfolio s objective and strategy) to mitigate risks. For investments in money market instruments and fixed income securities, credit risks are evaluated by a credit committee. The Manager also practises prudent liquidity management with the objective to ensure that the Fund is able to meet its short term expenses including repurchase requests by the Unit Holders. To manage compliance and regulatory risks, the Manager uses information technology system that is able to monitor the transactions to ensure compliance with the Fund s limits. These limits are system controlled and not manually tracked, thus reducing the probability of human error occurring in ensuring the Fund s limits are 13

adhered to. The Manager also undertakes stringent evaluation of movements in market prices and regularly monitors, reviews and reports to the investment committee to ensure that all the Fund s investment objective is met. Regular portfolio reviews by senior members of the investment team further reduce the risk of implementation inconsistencies and Guidelines violations. The Manager also employs a performance attribution system that enables the Manager to review the performance of the Fund to determine the key factors that have contributed and detracted from the Fund s performance. This system complements the Manager s overall risk management process as the system also provides standard risk analytics on the portfolio such as the Fund s standard deviation, tracking error and measures of excess return. The data produced by the performance attribution system is reviewed regularly and at least on a monthly basis in meetings chaired by the chief executive officer and participated by the portfolio managers and the performance evaluation team. It is important to note that events affecting the investments cannot always be foreseen. Therefore, it is not always possible to protect investments against all risks. The various asset classes generally exhibit different levels of risk. You are recommended to read the whole Information Memorandum to assess the risks of the Fund. If necessary, you should consult your professional adviser(s) for a better understanding of the risks. 14

5. FUND DETAILS 5.1 General Information Investment Objective The Fund aims to provide investors with a regular income stream while aiming to maintain the NAV per Unit at RM1.00. Note : Any material change to the Fund s investment objective would require Unit Holders approval. Distribution of income will be made in the form of Units only. Investors Profile The Fund is suitable for investors who: are conservative; and have short term investment horizon. Performance Benchmark The Fund shall benchmark itself against the Malayan Banking Berhad Overnight Rate. Note: The risk profile of this Fund is different from the risk profile of the benchmark. Tenure The Fund is an open ended fund which means there is no maturity date for the Fund and the Fund may only be terminated in accordance with the terms of this Information Memorandum and the provisions of the Deed. 5.2 Asset Allocation The Fund asset allocation range is as follows: Asset Class Money market instruments and fixed deposits with maturity period of not more than one (1) year % of NAV of the Fund Minimum of 90% to maximum of 99.8% Liquid assets Minimum of 0.2% 5.3 Investment Strategies The Fund will invest in money market instruments and fixed deposits with Financial Institutions with a maturity period of not more than one (1) year. The value of the Fund s placements of fixed deposits with any single Financial Institution must not exceed 50% of the Fund s NAV. The basic investment philosophy of the Manager is to provide regular income to the Fund at the same time preserving capital * and maintaining sufficient level of liquidity in order to meet repurchase requests by the Unit Holders without adversely impacting the Fund s NAV. The Manager believes that an important way to accomplish this is by analyzing various factors such as the current and anticipated changes in interest rates, economic statistics, yield curve changes and other general market conditions that could affect the money market instruments and fixed deposits. There will be no foreign investments in this Fund. * This Fund is neither a capital guaranteed nor a capital protected fund. 15

Generally, the Fund will adopt a hold to maturity policy. However, the Manager will continuously monitor the investments within the portfolio actively. In the best interest of the Unit Holders, the Manager will not hesitate to liquidate an investment if there are potential signs of credit deterioration and to replace it with another permitted investment which closely matches the Fund s objective. This is done as part of the Manager s risk management process and it is to note that such replacement is not expected to alter the overall risk profile of the Fund. 5.4 Permitted Investments Unless otherwise prohibited by the relevant authorities or any relevant laws and provided always that there are no inconsistencies with the objective of the Fund, the Fund will invest in the following investments: a) Negotiable certificates of deposits; b) Bankers acceptance; c) Certificates, bills and any other obligations issued or guaranteed by the Malaysian government, Bank Negara Malaysia, state governments and governmental related agencies; d) Cagamas notes and Bank Negara Monetary Notes; e) Placement of fixed deposits; f) Collective investment schemes; and g) Any other form of investments as may be determined by the Manager from time to time that is in line with the Fund s objective. 5.5 Investment Limits The purchase of the permitted investments set out above shall not contravene the following limits, unless otherwise revised by the Manager as it may deem beneficial to the Unit Holders from time to time: (a) The value of the Fund s placements of deposits with any single Financial Institution must not exceed 50% of the Fund s NAV. 5.6 Valuation of Assets Money Market Instruments Valuation of money market instruments will be based on amortised costs. Fixed Deposit Valuation of fixed deposits placed with Financial Institutions will be made by reference to the principal value of such investments and the interests accrued thereon for the relevant period. Collective Investment Schemes Collective investment schemes which are quoted on an approved exchange will be based on closing market prices. Where no market value is publicly available or where the use of the quoted market value is inappropriate, or where no market price is available, including in the event of suspension in the quotation for a period exceeding fourteen (14) days, or such shorter period as agreed by the Trustee, valuation will be based on fair value determined in good faith by the Manager, based on the methods or bases approved by the Trustee Investments in unlisted collective investment schemes shall be valued based on the last published repurchase price. In accordance to the Financial Reporting Standard 139 (FRS 139) issued by the Malaysian Accounting Standards Board, the Manager will for the purpose of valuing the Fund, obtain the daily price or value of the assets. In the absence of daily price or value of the assets, the Manager will use the latest available price or value of the assets respectively. 5.7 Valuation Point for the Fund The Fund will be valued at 5.00 p.m. on every Business Day (or trading day or T day). This is referred to as the valuation point of the Fund. 16

5.8 Policy on Gearing and Minimum Liquid Assets Requirements The Fund is not permitted to borrow cash or other assets (including the borrowing of securities within the meaning of the Guidelines on Securities Borrowing and Lending [SBL Guidelines]) in connection with its activities. However the Fund may borrow cash for the purpose of meeting repurchase requests for Units and such borrowings are subjected to the following: the Fund s cash borrowing is only on a temporary basis and that borrowings are not persistent; the borrowing period should not exceed a month; the aggregate borrowings of the Fund should not exceed 10% of the Fund s NAV at the time the borrowing is incurred; and the Fund may only borrow from Financial Institutions. Except for securities lending as provided under the SBL Guidelines, none of the cash or investments of the Fund may be lent. Further, the Fund may not assume, guarantee, endorse or otherwise become directly or contingently liable for or in connection with any obligation or indebtedness of any person. In structuring the portfolio of the Fund, the Manager will maintain sufficient liquid assets to ensure short term liquidity in the Fund to meet operating expenses and possible repurchase of Units. 5.9 Distribution Policy Subject to the availability of income, the Fund will provide Unit Holders with monthly income by way of reinvestment in the form of additional Units. Distribution of income to the Unit Holders will be made on a monthly basis, within four (4) days after the last day of each month by way of reinvestment in the form of additional Units. The Manager shall create Units for the Unit Holder based on the NAV per Unit of the Fund. The source from which income is distributed to the Unit Holders is derived from the interest income received by the Fund. There will not be any additional cost payable by the Unit Holder for reinvestments in new additional Units. 17

6. FEES & CHARGES The following are the charges that may be directly incurred by you. 6.1 Sales Charge There will be no Sales Charge levied on any purchase of Units of the Fund. 6.2 Repurchase Charge There will be no Repurchase Charge levied on any repurchase of Units of the Fund. 6.3 Transfer Fee There will be no transfer fee levied on any transfer of Units. 6.4 Switching Fee There will be no switching fee levied on any switching request. The following are the fees and expenses that may be indirectly incurred by you. 6.5 Annual Management Fee The annual management fee is up to 1.00% per annum of the NAV of the Fund. The management fee is calculated and accrued daily and payable monthly to the Manager. Please note that the example below is for illustration only: Assuming that the NAV of the Fund is RM120 million for the day, then the daily accrued management fee would be: RM120 million x 1.00% 365 days = RM 3,287.67 per day 6.6 Annual Trustee Fee The Fund pays an annual trustee fee of up to 0.02% per annum of the NAV of the Fund (excluding foreign custodian fees and charges). The Trustee may be reimbursed by the Fund for any expenses properly incurred by it in the performance of its duties and responsibilities. The trustee fee is calculated and accrued daily and payable monthly to the Trustee. Please note that the example below is for illustration only: Assuming that the NAV of the Fund is RM120 million for the day, then the daily accrued trustee fee would be: RM120 million x 0.02% 365 days = RM 65.75 per day 6.7 Fund Expenses Only fees and expenses that are directly related and necessary to the business of the Fund may be charged to the Fund. These include the following: (a) Commissions or fees paid to brokers in effecting dealings in the investments of the Fund, shown on the contract notes or confirmation notes; (b) (where the custodial function is delegated by the Trustee for the custody of foreign investments) charges or fees paid to foreign sub custodians; 18

(c) Tax and other duties charged on the Fund by the government and/or other authorities; (d) Costs, fee and other expenses properly incurred by the auditor appointed for the Fund; (e) Costs, fees and expenses incurred for the valuation of any investments of the Fund by independent valuers for the benefit of the Fund; (f) Costs, fees and expenses incurred for any modification of the Deed save where modification is for the benefit of the Manager and/or the Trustee; (g) Costs, fees and expenses incurred for any meeting of the Unit Holders save where such meeting is convened for the benefit of the Manager and/or Trustee; and (h) Other fees and expenses related to the Fund. Expenses related to the issuance of this Information Memorandum will be borne by the Manager. 6.8 Goods and Services Tax The Royal Malaysian Customs Department has announced the implementation of GST with effect from 1 April 2015 onwards pursuant to the Goods and Services Tax Act 2014. Collective investment schemes are generally exempted from GST. However, some fees, charges and expenses of the Fund are subject to GST which includes: (a) Sales Charge; (b) Repurchase Charge; (c) Switching fee; (d) Transfer fee; (e) Management fee; (f) Trustee fee; and (g) Any other expenses of the Fund that may be subject to GST. The Trustee, other service providers of the Fund and us will charge GST at the prevailing rate of 6% on the abovementioned fees, charges and expenses in accordance with the Goods and Services Tax Act 2014. You should be aware that all fees, charges and expenses referred to or quoted in the Information Memorandum (including any supplemental information memorandum) and the Deed (including any supplemental deed) are referred to or quoted as being exclusive of GST. 6.9 Policy on Stockbroking Rebates and Soft Commissions The Manager or any delegate thereof shall not retain any rebate from, or otherwise share in any commission with, any broker in consideration for direct dealings in the investments of the Fund. Accordingly, any rebate or shared commission should be directed to the account of the Fund concerned. However, the Manager or any delegate thereof may and intends to retain goods and services ( Soft Commissions ) from any broker, only if the goods and services are of demonstrable benefit to the Unit Holders such as research materials and computer software which are incidental to the investment management activities of the Fund. There are fees and charges involved and investors are advised to consider the fees and charges before investing in the Fund. The fees, charges and expenses quoted in the Information Memorandum are exclusive of GST. The Trustee, other service providers of the Fund and us will charge GST at the prevailing rate of 6% on the fees, charges and expenses in accordance with the Goods and Services Tax Act 2014. 19

7. SALE AND PURCHASE OF UNITS 7.1 Computation of NAV and NAV per Unit Net Asset Value for the Fund is determined by deducting the value of all the Fund s liabilities from the value of all the Fund s assets, at a valuation point. Illustration: For illustration purposes, we assume the following for a particular day: Investments of the Fund = RM 100,000,000.00 Other assets including cash = RM 50,000,000.00 Liabilities of the Fund = RM 30,000,000.00 Number of Units in Circulation = 100,000,000.00 Management fee = RM 3,287.67 Trustee fee = RM 65.75 Distribution payable = 19,996,445.37 The NAV of the Fund will be: RM Investments 100,000,000.00 Add other Assets 50,000,000.00 Total assets 150,000,000.00 Less liabilities 30,000,000.00 NAV (before deduction of management fee and trustee fee for the day) 120,000,000.00 Less management fee for the day 3,287.67 trustee fee for the day 65.75 NAV (before GST) 119,996,646.58 Less GST of 6% on the management fee for the day 197.26 GST of 6% on the trustee fee for the day 3.95 distribution payable* 19,996,445.37 NAV (after GST) 100,000,000.00 For the purpose of the illustration above, the computation of NAV and NAV per Unit are based on the assumption that the expenses are inclusive of GST. The NAV per Unit of the Fund will be: NAV Units in Circulation = RM 100, 000,000.00 100,000,000 = RM 1.0000 *Any income received by the Fund, will be declared and accrued on a daily basis as distribution payable. However, payment of income to the Unit Holders will only be made on a monthly basis (refer to Section 5.9 Distribution Policy of this Information Memorandum for further details). In order for the Fund to maintain its NAV per Unit at RM1.00, the Fund will declare and accrue income distribution of the Fund on a daily basis. Based on the above illustration, assuming the Fund has accumulated a total distribution payable of RM19,996,445.37 (after deduction of the relevant fees and expenses) for a particular day, this amount will be accrued and declared. The Fund will then have a total NAV of RM100,000,000.00 and the NAV per Unit of RM1.00 (NAV Units in Circulation). Note: The NAV per Unit will be rounded to two (2) decimal places for the purposes of publication of the NAV per Unit. 20

7.2 Pricing of Units Under a single pricing regime, the Selling Price and the Repurchase Price of the Fund shall be equivalent to the NAV per Unit of the Fund. Any applicable Sales Charge and Repurchase Charge shall be payable separately from the Selling Price and Repurchase Price of the Fund. Forward Pricing will be used to determine the Selling Price per Unit and Repurchase Price per Unit of the Fund, which is the NAV per Unit for the Fund as at the next valuation point after the purchase or repurchase request is received by the Manager. An illustration of which is given below: Calculation of Selling Price The Selling Price is the NAV per Unit of the Fund. Any Sales Charge payable by the Unit Holder would be calculated as a percentage of the Selling Price per Unit of the Fund. For illustration purposes, we assume the following: Amount invested : RM100,000 Sales Charge : Nil NAV per Unit : RM1.00 (Selling Price) The investment amount, number of Units purchased and Sales Charge payable by the Unit Holder are as follows: Items Formula Amount Amount invested by Unit Holder RM100,000.00 Number of Units purchased Sales Charge of 0% on NAV per Unit Amount invested divided by NAV per Unit = RM100,000 / RM1.00 Sales Charge x NAV per Unit x No. of Units = 0% x RM1.00 x 100,000 Units 100,000 Units RM 0.00 Total amount invested = RM 100,000.00 Add Sales Charge paid = RM 0.00 GST (6% of RM 0.00) = RM 0.00 Total amount paid by Unit Holder = RM 100,000.00 Calculation of Repurchase Price The Repurchase Price per Unit is the NAV per Unit of the Fund. Any Repurchase Charge payable by the Unit Holder would be calculated as a percentage of the NAV per Unit of the Fund. For illustration purposes, assume the following: Number of Units repurchased : 100,000 Units Repurchase Charge : Nil NAV per Unit : RM1.00 (Repurchase Price) The net repurchase proceeds payable to the Unit Holders are as follows: Items Formula Amount Units intended for repurchase 100,000 Units Amount requested to be repurchased by Unit Holder Repurchase charge is 0% of the NAV per Unit No. of Units to be repurchased x NAV per Unit = 100,000 x RM1.00 Repurchase Charge x Amount repurchased = Nil x RM 100,000 RM 100,000.00 RM0.00 21

Total amount repurchased = RM 100,000.00 Less Repurchase Charge paid = RM 0.00 GST (6% of RM 0.00) = RM 0.00 Total amount paid to Unit Holder = RM 100,000.00 Incorrect Pricing Subject to any relevant laws, if there is an error in the pricing of the NAV per Unit of the Fund; the Manager will take immediate remedial action to correct the error. Rectification shall, where necessary, extend to the reimbursements of money as follows if the error is at or above the significant threshold of 0.5% of the NAV per Unit: (a) (b) (c) (d) if there is an over pricing in relation to the purchase and creation of Units, the Fund shall reimburse the Unit Holder; if there is an over pricing in relation to the repurchase of Units, the Manager shall reimburse the Fund; if there is an under pricing in relation to the purchase and creation of Units, the Manager shall reimburse the Fund; and if there is an under pricing in relation to the repurchase of Units, the Fund shall reimburse the Unit Holder or former Unit Holder. The Manager retains the discretion whether or not to reimburse if the error is below 0.5% of the NAV per Unit or where the total impact on an individual account is less than RM10.00 in absolute amount. This is because the reprocessing costs may be greater than the amount of the adjustment. 7.3 Sale of Units Minimum initial investment RM100,000 Minimum additional investment RM10,000 Subject to the Manager s discretion, the investor may negotiate for a lower amount or value. Investors can obtain the Information Memorandum, account opening form and investment application form from the offices listed in Section 11 or from any of the Manager s authorised agents. The Fund s application form can be handed directly to any of the said offices, or sent by mail, together with a cheque or bank draft made payable to Affin Hwang Asset Management Berhad. All cheques and bank drafts have to be crossed and drawn on a local bank. Bank charges, where relevant, for outstation cheques will be borne by the investors. For first time investors Individual or joint application must be accompanied by a copy of the applicant s identity card or passport or other document of identification. Application by a corporation must be accompanied by a certified true copy of its Memorandum and Articles of Association, Certificate of Incorporation, Form 24, Form 44, Form 49, the latest audited financial statement of the corporation and board resolution relating to the investment, a list of the corporation s authorised signatories and specimen signatures of the respective signatories. 7.4 Minimum Holding of Units Unit Holders must hold at least 100,000 Units in order to remain as a Unit Holder in the Fund. Subject to the Manager s discretion, the investor may negotiate for a lower amount or value. Notwithstanding Section 7.7 below, the Manager shall not be bound to comply with a repurchase request, if the said request results in the Unit Holder s holding being less than the minimum holdings of 100,000 Units. If a Unit Holder insists on making a repurchase request knowing that after the repurchase request is satisfied by the Manager and the Unit Holder will hold less than the minimum holdings of Units, the Unit Holder is required to repurchase all the holding of Units in the Fund at the same time as the repurchase request is received by the Manager. 22