CD for Cover - eunittrust.com.my · “ANGKASA” Angkatan Koperasi Kebangsaan Malaysia Berhad; “application” Application or request to buy unit(s) by an investor or a unit holder;

2015/2016 MASTER PROSPECTUS

ii

PMB Investment Berhad

Responsibility Statement

This Master Prospectus has been reviewed and approved by the directors of PMB Investment Berhad and

they collectively and individually accept full responsibility for the accuracy of the information. Having

made all reasonable inquiries, they confirm to the best of their knowledge and belief, there are no false or

misleading statements, or omission of other facts which would make any statement in this Master

Prospectus false or misleading.

Statements of Disclaimer

The Securities Commission Malaysia has authorized the Funds and a copy of this Master Prospectus has

been registered with the Securities Commission Malaysia.

The authorization of the Funds, and the registration of this Master Prospectus, should not be taken to

indicate that the Securities Commission Malaysia recommends the said Funds or assumes responsibility

for the correctness of any statement made, opinion expressed or report contained in this Master

Prospectus.

The Securities Commission Malaysia is not liable for any non-disclosure on the part of PMB Investment

Berhad responsible for the said Funds and takes no responsibility for the contents in this Master

Prospectus. The Securities Commission Malaysia makes no representation on the accuracy or

completeness of this Master Prospectus, and expressly disclaims any liability whatsoever arising from, or

in reliance upon, the whole or any part of its contents.

INVESTORS SHOULD RELY ON THEIR OWN EVALUATION TO ASSESS THE MERITS AND RISKS OF

THE INVESTMENT. IF INVESTORS ARE UNABLE TO MAKE THEIR OWN EVALUATION, THEY ARE

ADVISED TO CONSULT PROFESSIONAL ADVISERS.

No units of the Funds will be issued or sold on the basis of this Master Prospectus later than one

(1) year after the date of this Master Prospectus.

Investors should note that they may seek recourse under the Capital Markets and Services Act

2007 for breaches of securities laws and regulations including any statement in this Master

Prospectus that is false, misleading, or from which there is a material omission; or for any

misleading or deceptive act in relation to this Master Prospectus or the conduct of any other

person in relation to the Funds.

PMB Dana Al-Aiman, PMB Dana Mutiara, PMB Dana Bestari, PMB Shariah Aggressive Fund, PMB

Shariah Growth Fund, PMB Shariah Mid-Cap Fund, PMB Shariah Index Fund, PMB Shariah

Premier Fund, PMB Shariah Dividend Fund, PMB Shariah TNB Employees Fund, PMB Shariah

Tactical Fund, PMB Shariah Balanced Fund and PMB Shariah Cash Management Fund have been

certified as being Shariah-compliant by the Shariah Adviser appointed for the Funds.

MASTER PROSPECTUS 2016/2017

iii


CONTENTS

1. GLOSSARY OF TERMS/ABBREVIATIONS 1-5

2. CORPORATE DIRECTORY 6-8

3. KEY DATA / INFORMATION SUMMARY 9-25

3.1 FUND INFORMATION 9-21

3.2 FEES, CHARGES AND EXPENSES 22-23

3.3 ADDITIONAL INFORMATION 24-25

4. RISK FACTORS 26-28

4.1 GENERAL RISKS OF INVESTING IN UNIT TRUST FUND 26

4.2 SPECIFIC RISKS ASSOCIATED WITH INVESTMENT PORTFOLIOS 27-28

5. THE FUNDS 29-67

5.1 EQUITY FUNDS 29-56

5.1.1 PMB Dana Al-Aiman 29

5.1.2 PMB Dana Mutiara 31

5.1.3 PMB Dana Bestari 33

5.1.4 PMB Shariah Aggressive Fund 35

5.1.5 PMB Shariah Growth Fund 37

5.1.6 PMB Shariah Mid-Cap Fund 39

5.1.7 PMB Shariah Index Fund 41

5.1.8 PMB Shariah Premier Fund 45

5.1.9 PMB Shariah Dividend Fund 47

5.1.10 PMB Shariah TNB Employees Fund 49

5.2 MIXED ASSET FUND 51

5.2.1 PMB Shariah Tactical Fund 51

5.3 BALANCED FUND 53

5.3.1 PMB Shariah Balanced Fund 53

5.4 MONEY MARKET FUND 55

5.4.1 PMB Shariah Cash Management Fund 55

5.5 SHARIAH-COMPLIANT AND SHARIAH APPROVAL PROCESS 57

5.6 TEMPORARY DEFENSIVE POSITION 60


iv


5.7 RISK MANAGEMENT STRATEGIES 60

5.8 PERMITTED INVESTMENTS 63

5.9 INVESTMENT RESTRICTIONS AND LIMITS 64

5.10 VALUATION OF INVESTMENTS 66

5.11 POLICY ON GEARING 67

6. FUND PERFORMANCE 68-106


















7. HISTORICAL FINANCIAL HIGHLIGHTS 107-121









v












7.5 TOTAL ANNUAL EXPENSES 120

7.6 MANAGEMENT EXPENSES RATIO (MER) 121

8. FEES, CHARGES AND EXPENSES 122-124

8.1 CHARGES 122

8.2 FEES 123

8.3 EXPENSES 124

8.4 REBATE AND COMMISSION 124

9. TRANSACTION INFORMATION 125-134

9.1 TRANSACTION DETAILS 125

9.2 PAYMENT METHODS 126

9.3 COOLING-OFF POLICY 127

9.4 REPURCHASING/REDEEMING AN INVESTMENT 127

9.5 CHANNELS TO PURCHASE AND REDEEM UNITS 128

9.6 SWITCHING BETWEEN FUNDS 128

9.7 TRANSFER OF UNITS 128

9.8 A QUICK GUIDE ON HOW TO BUY, SELL, SWITCH AND TRANSFER 129

9.9 INCOME DISTRIBUTION AND REINVESTMENT POLICIES 130

9.10 DETERMINATION OF PRICE 131

10. MANAGEMENT OF THE FUNDS 135-143

10.1 THE MANAGER’S PROFILE 135


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10.2 BOARD OF DIRECTORS 135

10.3 MANAGEMENT TEAM 135

10.4 SUMMARY OF FINANCIAL POSITION 137

10.5 ROLES, DUTIES AND RESPONSIBILITIES OF THE MANAGEMENT

COMPANY 137

10.6 MANAGER’S DELEGATE 138

10.7 MATERIAL LITIGATION AND ARBITRATION 138

10.8 INVESTMENT COMMITTEE 139

10.9 SHARIAH ADVISER OF THE FUNDS 140

10.10 DESIGNATED FUND MANAGERS 142

11.

THE TRUSTEE OF THE FUNDS 144-147

11.1 AMANAHRAYA TRUSTEES BERHAD 144

11.2 CIMB ISLAMIC TRUSTEE BERHAD 145

11.3 TRUSTEE’S STATEMENT OF RESPONSIBILITY 146

11.4 ROLES, DUTIES AND RESPONSIBILITIES OF THE TRUSTEE 146

11.5 TRUSTEE’S DECLARATION 146

11.6 TRUSTEE’S OBLIGATION 147

12.

SALIENT TERMS OF THE DEED 148-152

12.1 RIGHTS AND LIABILITIES OF A UNIT HOLDER 148

12.2 FEES AND CHARGES 148

12.3 PERMITTED EXPENSES 149

12.4 REMOVAL, REPLACEMENT AND RETIREMENT OF THE

MANAGEMENT COMPANY AND TRUSTEE 150

12.5 TERMINATION OF THE FUND 151

12.6 UNIT HOLDERS’ MEETING 151

13.

CONFLICT OF INTEREST 153

14.

TAXATION OF THE FUNDS 154-160

15.0 ADDITIONAL INFORMATION 149

15.

ADDITIONAL INFORMATION 160-162

15.1 UPDATES ON THE FUNDS 161

15.2 PRE-INVESTMENT FORM (PIF) 161

15.3 SUITABILITY ASSESSMENT 161


vii


15.4 INVESTOR RELATION 161

15.5 COMPLAINTS 161

15.6 SECURITIES INDUSTRY DISPUTE RESOLUTION CENTRE (SIDREC) 162

15.7 ANTI-MONEY LAUNDERING AND ANTI-TERRORISM FINANCING

(AML/CFT) POLICIES 162

15.8 PRIVACY NOTICE UNDER PERSONAL DATA PROTECTION ACT

2010 163

15.9 GOODS AND SERVICES TAX (GST) 163

15.10 FOREIGN ACCOUNT TAX COMPLIANCE ACT (FATCA) 163

15.11 ZAKAT 163

15.12 AUDITORS OF THE FUND 163

15.13 PLEDGING OF UNITS AS COLLATERAL 164

15.14 BORROWING TO PURCHASE UNITS 164

15.15 PERIOD OF THE FUND 164

15.16 LIST OF DISTRIBUTION CHANNELS 164

16.

STATEMENT OF CONSENT 166

17.

DOCUMENTS AVAILABLE FOR INSPECTION 167

18.

APPENDICES 168

1) MASTER APPLICATION FORM

2) INVESTMENT REQUEST FORM


1


1. GLOSSARY OF TERMS/ABBREVIATIONS

In this Master Prospectus, except when the context otherwise requires, the following words and expressions

shall bear the following meanings:

“Act” Capital Markets and Services Act 2007 (as amended from time to time);

“ANGKASA” Angkatan Koperasi Kebangsaan Malaysia Berhad;

“application” Application or request to buy unit(s) by an investor or a unit holder;

“ART” AmanahRaya Trustees Berhad;

“BIMBSEC” BIMB Securities Sdn Bhd;

“BNM” Bank Negara Malaysia;

“Bursa Malaysia” Malaysia’s stock exchange managed by Bursa Malaysia Berhad;

“business day” A day on which the Bursa Malaysia is open for dealings;

“buying price” or

“repurchase price” of a

unit

The price equivalent to the NAV per unit of the respective Funds as at

the next valuation point after the request for repurchase is received by

the Manager;

“CIS”

‘Collective Investment Scheme’ refers to an arrangement where-

a) it is made for the purpose, or having the effect, of providing

facilities for persons to participate in or receive profits or

income arising from the acquisition, holding, management or

disposal of securities, derivatives or any other property

(referred to as "scheme’s assets”) or sums paid out of such

profits or income;

b) the persons who participate in the arrangements do not have

day-to-day control over the management of the scheme’s assets;

and

c) the scheme’s assets are managed by an entity that is responsible

for the management of the scheme’s assets and is

approved/authorized/licensed by a relevant regulator to

conduct fund management activities;

and includes among others unit trust funds, real estate investment

trusts, exchange-traded funds and closed-end funds;

“CITB” CIMB Islamic Trustee Berhad;

“cut-off time”

The time by which requests for unit purchases or redemptions by

investors are accepted each day up to the unit trust fund’s dealing cut-

off time and are processed using the same day-end’s NAV per unit

prices;

“Deed”

The principal and the supplemental deeds of the relevant Fund(s)

made between the Manager and the respective Trustee;

“designated fund

manager”

A Capital Markets Services Representative’s Licence (CMSRL) holder

who is responsible for the fund management of the respective Funds;

“Distribution Date”

The date on which the cash distribution of the relevant Funds, or unit

distribution in lieu of the cash, is made or scheduled to be made;


2


“dividend yield”

The amount of a company's annual dividend expressed as a percentage

of the current price of the share of that company;

“Eligible Market”

Means 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.

“EPF MIS” Employees Provident Fund Members’ Investment Scheme;

“equity–related

securities” Warrants, rights and/or irredeemable unsecured loan stocks (ICULS);

“FBM 100” FTSE Bursa Malaysia Top 100 Index;

“FBM EMAS”

FTSE Bursa Malaysia EMAS Index.

FBM EMAS comprises the constituents of the FTSE Bursa Malaysia Top

100 Index and FTSE Bursa Malaysia Small Cap Index (FBM Small Cap).

FBM Small Cap comprises those eligible companies within the top 98%

of the Bursa Malaysia Main Market excluding constituents of the FTSE

Bursa Malaysia Top 100 Index;

“FBM KLCI” FTSE Bursa Malaysia KLCI;

“FBMSHA” FTSE Bursa Malaysia EMAS Shariah Index;

“FIMM” Federation of Investment Managers Malaysia;

“financial institution”

a) If the institution is in Malaysia –

(i) licensed bank;

(ii) licensed investment bank; or

(iii) licensed Islamic bank;

b) if the institution is outside Malaysia, any institution that is

licensed/registered/approved/authorised by the relevant

banking regulator to provide financial services;

“forward pricing”

The determination of the unit price based on the NAV per unit of the

Fund as at the next valuation point after a request for sale or

repurchase of units is received;

“Funds”

The unit trust schemes comprised in this Master Prospectus and the

word “Fund” shall refer to any one of such schemes;

“Guidelines”

Guidelines on Unit Trust Funds issued by the SC, as amended from time

to time;

“Investor” or “Unit

Holder”

The person registered for the time being as a holder of units in the

Fund(s) in accordance with the provisions of the Deeds;

“Islamic money market

instruments “

Financial instruments with liquidity and near term maturity, issued

under the Shariah principles, that are tradeable, such as commercial

papers, banker’s acceptance and negotiable certificate of deposit;

“Islamic deposit

placements”

Money placed with financial institutions for an agreed period under

the Shariah principles which are Islamic Negotiable Instruments (INI),

General Investment Accounts (GIA) or Special Investment Accounts

(SIA);


3


“IUTA”

‘Institutional Unit Trust Adviser’, which is an institution, a corporation

or an organization registered with the FIMM in accordance with

FIMM’s Guidelines for Registration of Institutional Unit Trust Adviser

for the marketing and distribution of unit trusts;

“KLCI” Kuala Lumpur Composite Index;

“KLIRR” Kuala Lumpur Islamic Reference Rates;

“KLSI” Kuala Lumpur Shariah Index;

“long term” A period of more than 5 years;

“MER”

‘Management Expense Ratio’ refers to the ratio of the sum of fees and

the recovered expenses of a unit trust fund to the average value of a

unit trust fund calculated on a daily basis;

“Manager” or “We” or “us” PMB Investment Berhad;

“MARA” Majlis Amanah Rakyat;

“MARC” Malaysian Rating Corporation Berhad;

“medium term” A period of between 3 and 5 years;

“NAV”

‘Net Asset Value’ refers to the value of a unit trust fund which is

determined by deducting the value of all the fund’s liabilities from the

value of all the fund’s assets, at the valuation point, except that, 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;

“NAV per unit”

The NAV of a unit trust fund divided by the number of units in

circulation at the valuation point;

“near term” A period of less than 1 year;

“PMB” Pelaburan MARA Berhad;

“PMB Al-Aiman” PMB Dana Al-Aiman;

“PMB Bestari” PMB Dana Bestari;

“PMB Investment” PMB Investment Berhad;

“PMB Mutiara” PMB Dana Mutiara;

“PMB SAF” PMB Shariah Aggressive Fund;

“PMB SBF” PMB Shariah Balanced Fund;

“PMB SCMF” PMB Shariah Cash Management Fund;

“PMB SDF” PMB Shariah Dividend Fund;

“PMB SGF” PMB Shariah Growth Fund;

“PMB SIF” PMB Shariah Index Fund;

“PMB SMCF” PMB Shariah Mid-Cap Fund;

“PMB SPF” PMB Shariah Premier Fund;

“PMB STEF” PMB Shariah TNB Employees Fund;

“PMB STF” PMB Shariah Tactical Fund;


4


“PTR”

‘Portfolio Turnover Ratio’ refers to the ratio of the average sum of

acquisitions and disposals of a Fund for the year to the average value

of the Fund for the year calculated on a daily basis. The Annual

Portfolio Turnover Ratio will indicate to the investor whether the Fund

buys and sells securities frequently or whether it takes a longer term

approach to investment management. A portfolio turnover ratio of 1

time means that the Fund has been turned over once for that particular

year;

“RAM” RAM Rating Services Berhad;

“redemption” or

“repurchase”

The repurchase by the Manager of all or part of the units owned by the

Unit Holder;

“repurchase price” or

“buying price” of a unit

The price equivalent to the NAV per unit of the respective Funds as at

the next valuation point after the request for repurchase is received by

the Manager;

“RM” Ringgit Malaysia;

“SAC” Shariah Advisory Council of the SC;

“SC” Securities Commission Malaysia, established under the Securities

Commission Act, 1993;

“securities” Has the same definition according to the Capital Markets and Services

Act 2007 (as amended from time to time);

“selling price of a unit” The price equivalent to the NAV per unit of a unit trust fund as at the

next valuation point after the application for units is received by the

Manager;

“Shariah” Islamic laws, originating from the Qur`an (the holy book of Islam), and

its practices and explanations rendered by the Prophet Muhammad

(peace be upon him) and ijtihad of ulama’ (personal effort by qualified

Shariah scholars to determine the true ruling of the divine law on

matters whose revelations are not explicit);

“Shariah Adviser” The Shariah adviser appointed for the Funds;

“Shariah-compliant

securities”

The investment portfolio of the Fund comprises securities that have

been classified as Shariah-compliant by the SAC. For securities that

have yet to be certified by the SAC, the Shariah Adviser of the Fund will

determine whether or not the securities are Shariah-compliant for

investment by the Fund;

“short term” A period of between 1 and 3 years;

“SPR” ‘Single Pricing Regime’ refers to a policy or system in which the

creation, cancellation, selling and repurchase prices for units are the

NAV per unit of a unit trust fund(s). The actual and total amount of

these prices paid by the investors then, depend on the rate of sales

charges separately imposed by different distribution channels;

“structured products” Any investment product that falls within the definition of “securities”

and which derives its value by reference to the price or value of an

underlying reference;

“subscribing price of a

unit’

The price payable by an investor or a unit holder of the Fund for the

purchase of a unit of a Fund;


5


“sukuk” certificates of equal value which evidence undivided ownership or

investment in the assets using Shariah principles and concepts

endorsed by the SAC;

“Trustee” The trustee appointed for the Funds;

“UiTM” Universiti Teknologi MARA;

“unit” A unit of a unit trust fund that represents a unit holder’s interest;

“unit price” The price at which a unit holder buys or sells units at NAV per unit;

“Unit Holder” or

“Investor”

The person registered for the time being as a holder of units in the

Fund(s) in accordance with the provisions of the Deeds;

“units in circulation” Total number of units created and fully paid for and which has not been

cancelled;

“Unit Trust Consultant”

or “UTC”

An individual unit trust adviser registered with FiMM; and

“US person(s)” Refers to:-

a) a citizen of United States of America (US);

b) an individual lawfully admitted for permanent residence of the

US;

c) an unincorporated association with a substantial number of

members who are citizens of the US or are individuals lawfully

admitted for permanent residence of the US; or

d) a corporation incorporated in the US.


6


2. CORPORATE DIRECTORY

Manager

Registered Office

Business Office

PMB Investment Berhad (256439-D)

Suite C-5-4, Wisma Goshen,

Plaza Pantai, Jalan Pantai Baharu

59200 Kuala Lumpur

Level 20, 1 Sentral

Jalan Rakyat, Kuala Lumpur Sentral

50470 Kuala Lumpur

Tel: (03) 2785 9800 Fax: (03) 2785 9901

Website: pmbinvestment.com.my

E-mail: [email protected]

Manager’s Delegate

Registered Office

Business Office

Pelaburan MARA Berhad (7240-P)

Suite C-5-4, Wisma Goshen,


59200 Kuala Lumpur

Level 20, 1 Sentral


50470 Kuala Lumpur

Tel: (03) 2785 9800 Fax: (03) 2785 9901

Website: pelaburanmara.com.my

Board of Directors

Datuk (Dr.) Zamani bin Md Noor

Dato’ Sri Haji Abd Rahim bin Haji Abdul

Professor Dr. Faridah binti Haji Hassan

Haji Mansoor bin Ahmad

Dato’ Mohamad Safie bin Haji Asnawi

Nik Mohamed Zaki bin Nik Yusoff

Ahmad Nazim bin Abd Rahman

Ameer Ali bin Vali Mohamed

-

-

-

-

-

-

-

-

Independent/Chairman

Independent

Independent

Independent

Independent

Independent

Non-Independent

Non-Independent/Chief

Executive Officer

Members of

Investment

Committee

Haji Mansoor bin Ahmad

Nik Mohamed Zaki bin Nik Yusoff

Professor Dr. Mohamed Aslam bin Mohamed Haneef

Ahmad Nazim bin Abd Rahman

-

-

-

-

Independent/Chairman

Independent

Independent

Non-Independent

Company Secretary

Business Address

Shahrizat binti Othman (MAICSA No. 0764744)

AAJ Management Services Sdn Bhd (361182-T)

Suite C-5-4, Wisma Goshen


59200 Kuala Lumpur

Tel: (03) 2283 4007 Fax: (03) 2287 7006

Shariah adviser for

the Manager

Amanie Advisors Sdn Bhd (684050-H)

Level 33, Menara Binjai

No.2, Jalan Binjai, Off Jalan Ampang

504500 Kuala Lumpur

Tel: (03) 2181 8228 Fax: (03) 2181 8219


7


Shariah Adviser for

the Funds

BIMB Securities Sdn Bhd (290163-X)

32nd Floor, Menara Multi-Purpose, Capital Square

No.8, Jalan Munshi Abdullah

50100 Kuala Lumpur

Tel: (03) 2613 1600 Fax: (03) 2613 1799

Trustee

Registered Office

Business Office

AmanahRaya Trustees Berhad (766894-T)

Tingkat 11, Wisma AmanahRaya

No. 2, Jalan Ampang

50508 Kuala Lumpur

Tingkat 2, Wisma AmanahRaya II

No. 21, Jalan Melaka

50100 Kuala Lumpur

Tel: (03) 2036 5000/5129 Fax: (03) 2072 0322

Website: http://www.artrustees.com.my

Trustee

Registered Office

Business Office

CITB Trustee’s

Delegate

Registered Office

Business Office

CIMB Islamic Trustee Berhad (167913-M)

Level 13, Menara CIMB,

Jalan Stesen Sentral 2,

Kuala Lumpur Sentral,

50470 Kuala Lumpur

Tel : (03) 2261 8888 Fax: (03) 2261 0099

Website: http://www.cimb.com

Level 21, Menara CIMB

Jalan Stesen Sentral 2,

Kuala Lumpur Sentral,

50470 Kuala Lumpur

Tel: (03) 2261 8888 Fax: (03) 2261 9889

CIMB Bank Berhad (13491-P)


Jalan Stesen Sentral 2

Kuala Lumpur Sentral

50470 Kuala Lumpur

Tel: (03) 2261 8888 Fax: (03) 2261 8889

Website: http://www.cimb.com


Jalan Stesen Sentral 2


50470 Kuala Lumpur

Tel: (03) 2261 8888 Fax: (03) 2261 9892

Auditors

Messr. Jamal, Amin & Partners (AF 1067)

No.60-2B, 2nd Floor,

Jalan 2/23A, Off Jalan Genting Klang,

Taman Danau Kota, Setapak,

53300 Kuala Lumpur

Tel: (03) 4142 1626 Fax: (03) 4142 1601


8


Solicitors

Messrs. M.K. Chen & Leong

Suite B-09-02 Plaza Mont’ Kiara

No 2, Jalan Kiara, Mont’ Kiara

50480 Kuala Lumpur

Tel: (03) 6201 7381/7382 Fax: (03) 6201 7380

Tax Adviser Ahmad Abdullah & Goh (AF0381)

Suite 701, Wisma Hangsam

Jalan Hang Lekir

50000 Kuala Lumpur

Tel: (03) 2070 4408 Fax: (03) 2070 4393

Principal Bankers

1) CIMB Islamic Bank Berhad (671380-H)

Ground Floor, Wisma Genting

No. 28, Jalan Sultan Ismail

50250 Kuala Lumpur

Tel: (03) 2163 6358 Fax: (03) 2031 6320

2) Public Islamic Bank Berhad (6463-H)

Tiong Nam Branch

Level 1 & 2, Wisma Public Bank

300, Jalan Raja Laut

50350 Kuala Lumpur

Tel: (03) 2693 9555 Fax : (03) 2691 4673

FIMM Federation of Investment Managers Malaysia (272577-P)

19-06-1, 6th Floor, Wisma Tune,

No. 19, Lorong Dungun, Damansara Heights,

50490 Kuala Lumpur

Tel: (03) 2093 2600 Fax: (03) 2093 2700

Website: http://www.fimm.com.my

Regional Offices Please refer to the directory of distribution channels in Section 15.16.


9


3. KEY DATA / INFORMATION SUMMARY

This section is only a summary of the salient information about the Funds and investors should read

and understand the Master Prospectus in whole before making investment decisions.

3.1 FUND INFORMATION

NAME PMB DANA AL-AIMAN

Category / Type Equity (Shariah) / Growth & Income

Objective The objective of the Fund is to provide investors with steady return and to

achieve capital growth in the medium to long term by investing in equities

and fixed income securities that conform to the Shariah principles.

Investment Strategy The Fund shall invest primarily in a diversified portfolio of Shariah-

compliant equity and equity-related securities of public listed companies in

Bursa Malaysia with growth prospects and/or having forecast dividend yield

of 3% per annum or above.

Asset Allocation The Fund shall invest between 70% and 99.5% of its NAV in Shariah-

compliant equity and equity-related securities. The balance will be invested

in Islamic money market instruments, Islamic deposit placements, sukuk

and/or other permitted investments.

Performance Benchmark FBMSHA

Principal Risks • Equity market risk

• Stock specific risk

• Shariah status reclassification risk

• Dividend policy risk

Investor Profile The Fund is suitable for investors who:

• have a moderate risk tolerance level;

• have a medium to long term investment horizon;

• prefer a portfolio that conforms to Shariah principles; and

• seek for steady income for short term and a capital growth for long

term.

Distribution Policy The distribution (if any) is annual, subject to the availability of income for

the financial period.

Financial Year End

Trustee

Shariah Adviser

31 May

ART

BIMBSEC

You may refer the detailed information of the Fund in Section 5.1.1.


10


NAME PMB DANA MUTIARA





















• prefer a fund that conforms to Shariah principles;

• seek for steady income for short term and a capital growth for long term;

and

• are women investors.



Financial Year End

Trustee

Shariah Adviser

30 June

ART

BIMBSEC



11


NAME PMB DANA BESTARI






compliant equity and equity-related securities of public listed companies

in Bursa Malaysia with growth prospects and/or having forecast dividend

yield of 3% per annum or above.


compliant equity and equity-related securities. The balance will be

invested in Islamic money market instruments, Islamic deposit

placements, sukuk and/or other permitted investments.







• have a moderate risk tolerance;

• have a long term investment horizon;


• seek investment to fund their children education in the future.



Financial Year End

Trustee

Shariah Adviser

30 September

ART

BIMBSEC



12


NAME PMB SHARIAH AGGRESSIVE FUND

Category / Type Equity (Shariah) / Growth

Objective The objective of the Fund is to provide investors with opportunity to earn

high capital return over the medium to long term through active investments

in Shariah approved securities listed on the Bursa Malaysia.

Investment Strategy The Fund shall invest primarily in a diversified portfolio among any of the

top 300 Shariah-compliant companies in terms of market capitalization

listed on Bursa Malaysia. The Fund has an aggressive investment approach

where active trading strategy is adopted.



in Islamic money market instruments, Islamic deposit placements and/or

other permitted investments.






• have a high risk tolerance level;



• seek for capital appreciation from an aggressive Shariah-compliant

fund.

Distribution Policy The distribution is incidental.

Financial Year End

Trustee

Shariah Adviser

31 July

ART

BIMBSEC



13


NAME PMB SHARIAH GROWTH FUND


Objective The objective of the Fund is to provide investors with an opportunity to

achieve capital growth over the medium to long term period by investing in

Shariah-compliant securities.

Investment Strategy The Fund shall invest primarily in a diversified portfolio among any of the

top 300 Shariah-compliant companies in terms of market capitalization

listed on Bursa Malaysia that have potential, as analyzed by the Manager, for

earnings per share growth of at least 10% per annum and at the same time

have the potential, as analyzed by the Manager, to perform equal or better

than the performance of the selected performance benchmark.



in Islamic money market instruments, Islamic deposit placements and/or

other permitted investments.





Investor Profile The fund is suitable for investors who:

• have a high risk tolerance;



• seek capital appreciation from a Shariah-compliant fund that invests in

growth stocks.


Financial Year End

Trustee

Shariah Adviser

28 February (29 Feb in a leap year)

ART

BIMBSEC



14


NAME PMB SHARIAH MID-CAP FUND


Objective The objective of the Fund is to achieve capital growth over the medium to

long-term period by investing primarily in medium sized Shariah

compliant companies in terms of market capitalization.


compliant equity and equity-related securities of medium sized

companies listed on Bursa Malaysia with market capitalization between

RM1 billion and RM7 billion at the point of purchase. The Fund may invest

up to 20% of its NAV in securities of Shariah-compliant companies listed

on Bursa Malaysia with market capitalization in excess of RM7 billion.


compliant equity and equity-related securities. The balance will be

invested in Islamic money market instruments, Islamic deposit

placements, sukuk and/or other permitted investments.






• have a moderate to high risk tolerance level;


• prefer a fund that conforms to the Shariah principles; and

• seek capital growth from Shariah-compliant fund that invests

primarily in mid-cap stocks.


Financial Year End 30 April

Trustee CITB

Shariah Adviser BIMBSEC



15


NAME PMB SHARIAH INDEX FUND

Category / Type Equity (Shariah) / Index

Objective

The objective of the Fund is to provide investors with the opportunity to

gain reasonable return and capital growth in the medium to long term

period by investing in Shariah-compliant securities whilst at the same time

the Manager will attempt to match closely its performance with the

performance of the FBMSHA.

Investment Strategy The Fund will invest primarily in the major stocks constituent of the

FBMSHA. The Fund is a passively managed fund whereby the Manager

constructs the Fund’s investment portfolio based on an index sampling

approach by investing not less than 60% of the Fund’s NAV in the top 15

constituent stocks of the FBMSHA which represent approximately 63% of

the FBMSHA’s market capitalization (as at 29 February 2016). The balance

may be invested in the next remaining constituent stocks of FBMSHA, and

any other Shariah-compliant securities in Malaysia capital market, Islamic

money market instruments and/or Islamic deposit placements.

Asset Allocation The Fund shall invest a minimum 90% of its NAV in equities with a

minimum 60% among the top 15 constituent stocks of the FBMSHA.

However equity investment in the Fund shall not exceed 99.5% of its NAV.

The balance will be invested in Islamic money market instruments, Islamic

deposit placement and/or other permitted investments.





• Risk of tracking error

Investor Profile The Fund is suitable for investors who :



• prefer a fund that conforms to Shariah principles; and

• seek to have return close to the market performance.

Distribution Policy The distribution is annual, subject to the total returns of the Fund,

availability of income for the financial period, cash flow of the distribution,

and stability and sustainability of the distribution of returns.

Financial Year End

Trustee

Shariah Adviser

31 March

ART

BIMBSEC



16


NAME PMB SHARIAH PREMIER FUND


Objective The objective of the Fund is to provide opportunities for investors to achieve

capital growth over the medium to long term period through investment in

any of the 50 largest Shariah-compliant stocks by market capitalization (at

the time of purchase) listed on the Bursa Malaysia.

Investment Strategy To achieve its objective, the Fund shall invest primarily in a diversified

portfolio among any of the 50 largest Shariah-compliant stocks in terms of

market capitalization (at the point of purchase) listed on Bursa Malaysia. The

Fund may invest not more than 30% of its NAV in any of the next top 25

largest listed companies based on market capitalization.

Asset Allocation The Fund shall invest between 70% and up to 99.5% of its NAV in Shariah-












• seek capital growth from Shariah-compliant fund that invests in large

capitalized stocks.


Financial Year End

Trustee

Shariah Adviser

31 August.

ART

BIMBSEC



17


NAME PMB SHARIAH DIVIDEND FUND

Category / Type Equity (Shariah) / Income

Objective To provide investors with an opportunity to gain consistent and stable

income stream that is potentially higher than the average fixed deposit

rates.


compliant securities listed on Bursa Malaysia that offer or have the potential

to declare dividend yields of at least 3% per annum.


compliant equity and equity-related securities in Bursa Malaysia. The

balance will be invested in Islamic money market instruments, Islamic

deposit placements, sukuk and/or other permitted investments.



• Stock market risk







• seek a regular and stable income stream from their investment.

Distribution Policy Income will be distributed annually, subject to the availability of income for


Financial Year End

Trustee

Shariah Adviser

31 March

CITB

BIMBSEC



18


NAME PMB SHARIAH TNB EMPLOYEES FUND


Objective

The objective of the Fund is to provide investors with an opportunity to gain

steady income and to achieve capital growth over the medium to long term

period by investing in a portfolio of investments that comply with Shariah

principles.














Eligibility The following persons are eligible to apply and hold units in the Fund:

• Employees and retirees of Tenaga Nasional Berhad (TNB);

• Members of the Board of Directors of Tenaga Nasional Berhad (TNB);

• Any corporations, bodies, clubs, associations and/or cooperatives related

to TNB and/or the employees or retirees of TNB, as may be recognized

and/or approved by TNB.





• seek income and capital growth from a Shariah-compliant fund.

Distribution Policy The distribution is annually, subject to the availability of income for the

financial period.

Financial Year End 30 August

Trustee CITB




19


NAME PMB SHARIAH TACTICAL FUND

Category / Type Mixed Asset (Shariah) / Growth & Income

Objective

The objective of the Fund is to achieve capital growth over the medium to

long term period by investing in a portfolio of investments that comply

with Shariah principles.

Investment Strategy The Fund will adopt a tactical asset allocation strategy and has the

flexibility to rebalance its allocation between the different asset classes of

Shariah-compliant equity and equity-related securities listed on Bursa

Malaysia, sukuk, Islamic money markets instruments, Islamic deposit

placements and/or other permitted investments, depending on market

conditions.

Asset Allocation • 0% - 100% of the Fund’s NAV - Shariah-compliant equity and/or

equity-related securities

• 0% - 100% of the Fund’s NAV - Islamic money market instruments,

Islamic deposit placements, sukuk and/or other permitted

investments.

Performance Benchmark Two times (2x) the performance of 1-Year Adjusted Average Rate of Kuala

Lumpur Islamic Reference Rate (KLIRR)




• Profit/interest rate risk

• Credit/default risk


• have a moderate to high risk tolerance;



• seek income and capital growth from a tactical Shariah-compliant

fund.



Financial Year End 31 December

Trustee ART




20


NAME PMB SHARIAH BALANCED FUND

Category / Type Balanced (Shariah) / Growth & Income

Objective The objective of the Fund is to provide investors with an opportunity to

earn regular income and capital growth in the medium to long term

through investment in Shariah-compliant securities.

Investment Strategy The Fund shall invest primarily in a diversified portfolio that includes

Shariah-compliant stocks listed on Bursa Malaysia that have annual

dividend distribution track record and/or prospects for capital growth,

sukuk, Islamic money market instruments, Islamic deposit placements


Asset Allocation The Fund shall invest between 40% and 60% of its NAV in Shariah-

compliant equity and equity-related securities listed on Bursa Malaysia.

The balance will be invested in sukuk, Islamic money market instruments,

Islamic deposit placements and/or other permitted investments.

Performance Benchmark A combination of 50% FBMSHA and 50% 1-year Adjusted Average Rates of

the Kuala Lumpur Islamic Reference Rates (KLIRR)




• Profit/interest rate risk

• Credit/default risk


• have a low to moderate risk tolerance level;

• have medium to long term investment horizon;


• seek a regular annual income and capital growth in the medium to

long term from an Islamic fund.



Financial Year End

Trustee

Shariah Adviser

30 November

ART

BIMBSEC



21


NAME PMB SHARIAH CASH MANAGEMENT FUND

Category / Type Money Market (Shariah) / Income

Objective To provide investors with high degree of liquidity while maintaining capital

stability through investments primarily in Shariah approved money market

instruments and debt securities.

Investment Strategy The Fund seeks to achieve its objective by investing in near term Islamic

money market instruments, Islamic deposit placements and/or sukuk in

Malaysia that mature within 365 days. Nevertheless the Fund can invest up

to 10% of its NAV in the Islamic money market instruments, sukuk and/or

Islamic deposit placements with maturity period exceeding 365 days but

not longer than 732 days.

Asset Allocation The Fund shall invest up to 100% of its NAV in Islamic money market

instruments, sukuk and/or Islamic deposit placements. The Fund shall

invest not less than 90% of its NAV in Islamic money market instruments,

sukuk, or Islamic deposit placements having a maturity of not more than 365

days, while the balance can be invested Islamic money market instruments,

sukuk and/or Islamic deposit placements maturing between more than 365

days to 732 days.

Performance Benchmark BNM Overnight Islamic Interbank Rate

Principal Risks • Profit/Interest rate risk

• Credit/Default risk


• have a low risk tolerance level;

• have either short, medium or long term investment horizon;

• look for regular and stable though low level of return;

• look for alternative to Islamic deposit placements with tax incentive; and

• look for alternative to Islamic deposit placements that does not require

determination of tenure on placements.

Distribution Policy The distribution (if any) is on a monthly basis subject to the availability of

income.

Financial Year End

Trustee

Shariah Adviser

30 June

ART

BIMBSEC



22


3.2 FEES, CHARGES AND EXPENSES

• Charges directly incurred by investors when purchasing or redeeming units of the Funds.

Table below describes the charges that you may directly incur when you buy or redeem units of the Funds:-

Charges Distribution

Channels

% of the NAV Fund

Sales charge

per unit

IUTA, UTC & Direct

Purchase

6.0% Applicable to all Funds except PMB

SCMF

Nil PMB SCMF

EPS MIS

3.0%

Applicable to all approved Funds

except PMB SCMF

Nil PMB SCMF

Repurchase

charge per

unit

IUTA, UTC, Direct

Repurchase & EPF MIS Nil Applicable to all Funds

Switching

fee

The fee for switching are set out below:

To

From

Equity

funds

Mixed Asset/

Balanced funds

Money Market

funds

Equity funds Up to RM25 per

transaction

Up to RM25 per

transaction Nil

Mixed Asset/

Balanced funds

Up to RM25 per

transaction

Up to RM25 per

transaction Nil

Money Market

funds Up to 6.0% of the amount switched Not applicable

Transfer fee Up to RM10 per transaction (excluding stamp duty).

Other

charges

• Bank charges

• Telegraphic transfer

charges

Rate as determined by transacting financial institutions.

Notes:

i) The Manager may, at its discretion, charge a lower sales charge based on criteria as may be determined

from time to time. Please refer to Chapter 8 for details on the Sales Charge.

ii) All the above charges and fees are subject to the goods and services tax (GST) currently at the rate of

6.0%. (You may refer to Section 15.9 on the GST.)


23


• Fees and Expenses Indirectly Incurred when Investing in the Funds

Table below describes the fees that you may indirectly incur when you invest in any of the Funds:-

Fees And Expenses % Per Annum Of

NAV Fund

Annual Management

Fee

1.5% Applicable to all Funds except PMB SBF, PMB SIF

& PMB SCMF

1.0% PMB SBF

0.6% PMB SIF

0.4% PMB SCMF

Annual Trustee Fee

0.1% Applicable to all Funds except PMB SCMF & PMB

SDF

0.05% PMB SCMF

0.1% PMB SDF (subject to a minimum fee of RM18,000

per annum)

Other Fees and Expenses Directly Related to the Fund

Fees paid to

brokers/dealers

The rate of brokerage fees is in accordance with and determined by the rules

and regulations of Bursa Malaysia.

Auditor’s fee The rate of Auditors’ fee is determined by the Manager and Auditors as per

the agreement.

Tax adviser’s fee The rate of Tax Adviser’s fee is determined by the Manager and Tax Adviser

as per the agreement.

Valuation fee The rate of valuation fee is determined by the independent valuers as per

the agreement.

Taxes The rate of taxes is determined by the Government and other authorities.

Custodial charges The rate of custodial fee is determined by the Manager and the Trustee.

Tax voucher/

distribution warrants

The fees on tax voucher/distribution warrants are determined by the

printing company.

Annual/interim

reports

The annual/interim reports fees are determined by the cost incurred on the

issuance and distribution of the annual/interim reports.

Bank charges The rate is determined by the transacting financial institutions.

Note: All the above charges, fees and expenses are subject to the goods and services (GST) currently at the rate

of 6.0% (You may refer to Section 15.9 on the GST).


24


3.3 ADDITIONAL INFORMATION

• Trusteeship of the Funds

Funds under the ART trusteeship:

a. PMB Dana Al-Aiman

b. PMB Dana Mutiara

c. PMB Dana Bestari

d. PMB Shariah Aggressive Fund

e. PMB Shariah Growth Fund

f. PMB Shariah Index Fund

g. PMB Shariah Premier Fund

h. PMB Shariah Tactical Fund

i. PMB Shariah Balanced Fund

j. PMB Shariah Cash Management Fund

Funds under CITB trusteeship:

a. PMB Shariah Dividend Fund

b. PMB Shariah Mid-Cap Fund

c. PMB Shariah TNB Employees Fund

• Deed of the Funds

Under ART trusteeship:

a. Master Deed dated 3 June 1998;

b. 2nd Master Supplemental Deed dated 31 May 2001;

c. 3rd Master Supplemental Deed dated 20 May 2002;

d. 4th Master Supplemental Deed dated 8 June 2004;

e. 5th Master Supplemental Deed dated 6 September 2005;

f. 6th Master Supplemental Deed dated 10 February 2009;

g. 7th Master Supplemental Deed dated 20 July 2009;

h. 8th Master Supplemental Deed dated 15 August 2012;

i. 9th Master Supplemental Deed dated 9 October 2012;

j. 10th Master Supplemental Deed dated 29 November 2012;

k. 11th Master Supplemental Deed dated 30 July 2013;

l. 12th Master Supplemental Deed dated 4 March 2014; and

m. 13th Master Supplemental Deed dated 26 March 2015.

Under CITB trusteeship:

a. Principal deed dated 12 March 1992 in respect of PMB SMCF;

b. 1st Supplemental Deed dated 10 September 1993 in respect of PMB SMCF;

c. 2nd Supplemental Deed dated 10 October 1993 in respect of PMB SMCF;

d. 3rd Supplemental Deed dated 10 October 1994 in respect of PMB SMCF;

e. Principal Deed dated 22 August 1995 in respect of PMB STEF;

f. Supplemental Deed dated 3 June 1998 in respect of PMB SMCF and PMB STEF;

g. 2nd Master Supplemental Deed dated 31 May 2001 in respect of PMB SMCF and PMB STEF;


25


h. Principal deed dated 13 June 2008 in respect of PMB SDF;

i. 3rd Supplemental Master Deed dated 13 November 2013 in respect of PMB SMCF, PMB STEF

and PMB SDF;

j. 4th Supplemental Master Deed dated 4 March 2014; and

k. 5th Supplemental Master Deed dated 26 March 2015.

• Avenues for Advice to Prospective Investors

For investment in Unit trusts, you may find answers to all your questions at

https://www.fimm.com.my/investor/. Alternatively, you may contact ‘Training & Investor Education

Division, Securities Industry Development Corporation, No. 3, Persiaran Bukit Kiara, Bukit Kiara 50490

Kuala Lumpur (Tel: (03) 6204 8889).

• Designated Fund Managers for the Funds

The profile of the designated fund managers of the Fund may be referred to in Section 10.10.

• There are fees and charges involved and investors are advised to consider them before

investing in the Funds.

• Unit prices and distributions payable, if any, may go down as well as up.

• For information concerning certain risk factors which should be considered by

prospective investors, see “risk factors” commencing in Chapter 4.

• Past performance of the Fund is not an indication of its future performance.

• Investors are required to complete Pre-Investment Form, Suitability Assessment Form

and Foreign Account Tax Compliance Act (FATCA) Declaration Form in addition to

Application Form before investing.


26


4. RISK FACTORS

As with all investments, there are risks involved. The prices of units in, and the income from, a unit

trust fund may go up as well as down. You should be aware of the risks and returns involved in

investing in a unit trust fund. No guarantee is given that you will receive any income distribution or

return on your investments or that you will get back your initial amount invested in full. The risks

involved in investing in unit trust funds include but not limited to the following:-

4.1 GENERAL RISKS OF INVESTING IN UNIT TRUST FUNDS

• 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.

• Fund Management Risk

The performance of a unit trust fund depends on the experience, knowledge and expertise of the

fund manager and the investment strategies adopted. Poor management and/or strategies of a

fund, such as delays in responding appropriately to the economic or market changes, or inadequate

portfolio diversification, will jeopardize the investment of unit holders through the loss of their

capital invested in the fund or loss of opportunity.

• Inflation Risk

This is the risk that investors’ investment in the fund may not grow or generate income at a rate

that keeps pace with inflation. This would reduce investors’ purchasing power even though the

value of the investment in monetary terms has increased.

• Loan Financing Risk

This risk occurs when investors take a loan/financing to finance their investment. The inherent

risk of investing with borrowed money includes investors being unable to service the loan

repayments. In the event units are used as collateral, an investor may be required to top-up the

investors’ existing instalment if the prices of units fall below a certain level due to market

conditions. Failing which, the units may be sold at a lower net asset value per unit as compared to

the net asset value per unit at the point of purchase towards settling the loan.

• Non-Compliance Risk

The risk that the Manager and others associated with Funds may not follow the rules set out in the

Fund’s deed and internal policies, or the laws that governs the unit trust scheme, or act fraudulently

or dishonestly. Non-compliance may expose the fund to higher risks that may result in financial

and/or non-financial losses. However, this risk is greatly reduced via proper establishment of the

compliance and internal control policies.

• 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.


27


4.2 SPECIFIC RISKS ASSOCIATED WITH INVESTMENT PORTFOLIOS

In addition, there are also specific risks associated with the investment portfolio of each Fund. The

specific risks include but are not limited to the following:-

• Equity Market Risk

Applicable to PMB Al-Aiman, PMB Mutiara, PMB Bestari, PMB SAF, PMB SGF, PMB SMCF, PMB SIF,

PMB SPF, PMB SDF, PMB STF, PMB SBF and PMB STEF

The performance of the Fund is subject to the volatility of the stock market which is influenced by

the changes in the economic and political climate, interest rate, international stock market

performance and regulatory policies. The movement of the value in the underlying investment

portfolio will affect the NAV of the Fund. Any downward movement of the value will negatively

impact the NAV of the Fund.

• Stock Specific Risk



Prices of a particular stock may fluctuate in response to the circumstances affecting individual

companies such as adverse financial performance, news of a possible merger or loss of key

personnel of a company. Any adverse price movements of such stock will adversely affect the fund’s

NAV.

• Equity-related Securities Risk



The value of the equity-related securities depends on the value of the underlying equities that the

securities are related to. Any upward movement in the value of the underlying equities may result

an upward movement of the value of the respective equity-related securities, and vice versa. Hence,

the movement of the value of the equity-related securities will affect the value of the Fund.

• Shariah Status Reclassification Risk



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 SAC, the Shariah

adviser or the Shariah boards of the relevant Islamic indices. If this occurs, the Manager 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. In such an event, the Fund should :–

(a) dispose of the securities if the value of the securities exceeds or is equal to the investment

cost on the date of announcement of the List of Shariah-compliant securities by the SAC. The

Fund is allowed to keep dividends received and capital gain from the disposal of the

securities up to the date of announcement of the List of Shariah-compliant securities by the

SAC. However, any dividends received and excess capital gain from the disposal of Shariah

non-compliant securities after the date of announcement of the List of Shariah-compliant

securities by the SAC should be channeled to baitulmal and/or charitable bodies;

(b) hold the respective securities if the market price of the said securities is below the

investment cost until the market price or value of the securities is equal to the cost of

investment; or


28


(c) dispose of the securities at the price lower than the investment cost which will result the

decrease in the Fund’s value.

You may refer to Section 5.5 on the Fund’s Shariah methodology on the treatment of gains and

losses as a result of the reclassification of Shariah non-compliant equities.

• Dividend Policy Risk

Applicable to PMB Al-Aiman, PMB Mutiara, PMB Bestari, PMB SDF and PMB STEF

This is a risk particular to the fund which has heavy emphasis on high yield dividend stocks. Such

a risk may occur when fundamentals of the company’s business deteriorate or if there is a change

in the dividend payout policy resulting in a reduction of the dividend to be paid by the company.

This risk may be mitigated by investing mainly in companies with a consistent historical record of

paying dividends, strong cash flow, or operating in fairly stable industries.

• Risk of Tracking Error

Applicable to PMB SIF

The Fund’s performance may not reflect the performance of the FBMSHA as the weights of index

stocks held by the Fund vs the respective stock’s weightings in the FBMSHA does not fully replicate

the FBMSHA constituents. As a result, there is no guarantee that the fund will exactly replicate or

track the underlying benchmark’s return. However the Fund will be rebalanced on a monthly basis

to manage its tracking error versus the benchmark.

• Profit/Interest Rate Risk

Applicable to PMB STF, PMB SBF and PMB SCMF

Movements in interest rate will have an impact on a management of a fund. This risk refers to the

effect of profit/interest rate changes on the market value of Islamic money market instruments,

Islamic deposit placements and sukuk. Any downward movement of the profit/interest rate may

result in a loss of the expected return from the Fund’s investments in Islamic money market

instrument and Islamic deposit placement. The value of the sukuk has a tendency to move inversely

with the movement of the profit/interest whereby the prices of the sukuk may fall when

profit/interest rates rise, and vice versa.

The interest rate is a general indicator. Although the Funds does not invest in interest bearing

instruments, the movement of the interest rate will have an impact on the profit rate of the Islamic

money market instruments and Islamic deposit placement, and consequently affect the expected

return of the Fund’s investments.

• Credit/Default Risk

Applicable to PMB STF, PMB SBF and PMB SCMF

Credit risk relates to the creditworthiness of the issuers of the sukuk and their expected ability to

make timely payment of interest and/or principal. Any adverse situations faced by the issuer may

impact the value as well as liquidity of the sukuk. In the case of rated sukuk, this may lead to a credit

downgrade. Default risk relates to the risk that an issuer of a sukuk either defaulting on payments

or failing to make payments in a timely manner which will in turn adversely affect the value of the

sukuk. This could adversely affect the value of the fund.

As a result of the general risks of investing in the unit trust funds and specific risks associated with

investment portfolios, capital appreciation of the value of the Funds cannot be guaranteed. However,

the Manager will take reasonable steps to ensure that the above potential risks are mitigated. You may

refer to Section 5.7 on the Risk Management Strategies.


29


5. THE FUNDS

5.1 EQUITY FUNDS

The investment portfolio of the Funds comprises securities which have been classified as Shariah-

compliant by the SAC. For securities not certified by the SAC, the status of the securities has been

determined in accordance with the ruling issued by the Shariah Adviser of the Funds.

5.1.1 PMB DANA AL-AIMAN

Fund Profile

Category of Fund Equity (Shariah)

Type of Fund Growth & Income

General Information

The Fund was launched on 9 April 1968 as Kumpulan Modal Bumiputera Yang Pertama for Bumiputera

investors. Unit Holders on 21 September 1996 approved the conversion of the Fund into a Shariah-compliant

fund and its opening to the public. It was re-launched as Dana Al-Aiman on 19 May 1997. The Fund assumed

its current name on 28 April 2014.

Investment Objective

The objective of the Fund is to provide investors with steady return and to achieve capital growth in the

medium to long term by investing in equities and fixed income securities that conform to the Shariah principles.

Note: Any material changes to the investment objective of the Fund require Unit Holders’ approval.

Investment Strategy

The Fund shall invest primarily in a diversified portfolio of Shariah-compliant equity and equity-related

securities listed on any recognized stock exchange in Malaysia.

The portfolio construction process is research driven with extensive bottom-up fundamental analysis coupled

with top down economic and sector analysis. In identifying investable listed companies, the Manager relies on

fundamental research where the financial strength including track records, the company’s prospects, business

operation and top management of the companies are considered. In addition, prospects for the economies and

sectors in which the companies operate are also assessed.

The focus is on public-listed companies with growth prospects and/or having forecast dividend yield of 3.0%

per annum or above over medium to long term to optimize the total returns of the Fund. Other valuation

measures include price to earnings (PE), PE to growth, discounted cash flow, price to revalued net asset value

and price to book depending in which sector the companies operate and whether the operations are perpetual

or for a defined period. Analysis are also made on revenue growth, profit margins, sustainability of earnings,

balance sheet and cash flow. In view of its investment objective, the designated fund manager will trade the

securities depending on the securities market conditions.

The Fund will also partake in situational investment opportunity (such as mergers & acquisitions and

privatization) within the acceptable level of risks as analyzed by the Manager.

Under normal circumstances, allocation to equity and equity-related securities ranges between 70% and

99.5% of the NAV of the Fund. The remaining will be invested in Islamic money market instruments, Islamic

deposit placements, sukuk and/or other permitted investments. The equity allocation may be reviewed from

time to time depending on the global, regional and local economic as well as equity market conditions. This

includes assessing the relevant political, economic and business environment prior to making investment

decisions.


30


Asset Allocation

Asset class % of the Fund’s NAV

Shariah-compliant equity and equity-related

securities

Minimum 70% and maximum 99.5%

Islamic money market instruments, Islamic

deposit placements, sukuk and/or other

permitted investments.

The remaining balance of the Fund’s NAV not invested

in the above.

Temporary Defensive Positions

Please refer to Section 5.6 for detailed explanation.

Risks of Investing in the Fund

Please refer to Chapter 4 for detailed explanation of the risks involved.

Risk Management

Please refer to Section 5.7 for detailed explanation of risk management strategies employed by the Manager.

Performance Benchmark

FBMSHA – The index comprises the constituents of the FBM EMAS that are Shariah-compliant according to the

SAC screening methodology. You may obtain the information pertaining to the index from Bursa Malaysia

website and major daily newspapers.

Permitted Investments

Please refer to Section 5.8 for details.

Investment Restrictions and Limits


Valuation of Investments



31


5.1.2 PMB DANA MUTIARA

Fund Profile



General Information

The Fund was launched on 2 February 1970 as Kumpulan Modal Bumiputera Yang Keempat for Bumiputera

investors. Unit Holders approved on 21 April 2004 its conversion into a Shariah-compliant fund and its

opening to the public. It was re-launched as ASM Dana Mutiara on 5 August 2004 with a new marketing strategy

targeting especially women investors seeking for medium to long term investment. The Fund assumed its

current name on 28 April 2014.





Investment Strategy
















privatization) within the acceptable level of risks as analysed by the Manager.






decisions.


32


Asset Allocation

Asset Class % of the Fund ‘s NAV


securities


Islamic money market instruments, Islamic deposit

placements, sukuk and/or other permitted

investments.

The remaining balance of the Fund’s NAV not

invested in the above.





Risk Management













33


5.1.3 PMB DANA BESTARI

Fund Profile



General Information

The Fund was launched on 17 July 1975 as Kumpulan Modal Bumiputera Yang Kelapan for Bumiputera

investors. Unit Holders approved on 23 March 2002 its conversion into a Shariah-compliant fund and its

opening to the public. It was re-launched as Dana Bestari on 3 October 2002 with a new marketing strategy

focusing on investment for future education funding. The Fund assumed its current name on 28 April 2014.





Investment Strategy






















decisions.


34


Asset Allocation

Asset Class % of the Fund’s NAV


securities




investments.







Risk Management













35


5.1.4 PMB SHARIAH AGGRESSIVE FUND

Fund Profile


Type of Fund Growth

General Information

The Fund was launched on 5 May 1972 as Kumpulan Modal Bumiputera Yang Keenam for Bumiputera

investors. Unit Holders approved on 5 May 2005 its conversion into a Shariah-compliant aggressive fund and

its opening to the public. It was re-launched as ASM Shariah Aggressive Fund with a new marketing strategy

targeting investors who seek high capital return at a higher level of risks. The Fund assumed its current name

on 28 April 2014.


The objective of the Fund is to provide investors with opportunity to earn high capital return over the medium

to long term through active investments in Shariah approved securities listed on the Bursa Malaysia.


Investment Strategy


securities listed on any recognized stock exchange in Malaysia.The Fund has an aggressive investment

approach where active trading strategy is adopted. Its PTR is normally higher than that of the normal equity-

based funds.

It shall invest primarily in a diversified portfolio among any of the top 300 Shariah-compliant companies in

terms of market capitalization listed on Bursa Malaysia. Exclusions from the list of the 300, if any, are those

companies that have huge retained losses to the tune that its net asset value per share is less than 50% of its

par value – this is to mitigate the risk of investing in a potential insolvent company. The research process is

based on relative performance analysis that is aimed at selecting a portfolio of stocks among the stock universe

as mentioned above that have the potential to have good relative price performance.



deposit placements and/or other permitted investments. The equity allocation may be reviewed from time to

time depending on the global, regional and local economic as well as equity market conditions. This includes

assessing the relevant political, economic and business environment prior to making investment decisions.

Asset Allocation

Asset Class % of Fund’s NAV


securities



placements and/or other permitted investments.




36






Risk Management













37


5.1.5 PMB SHARIAH GROWTH FUND

Fund Profile


Type of Fund Growth

General Information

The Fund was launched on 28 December 1972 as Kumpulan Modal Bumiputera – Dana Pertumbuhan for

Bumiputera investors. Unit Holders approved on 18 October 2012 the conversion into Shariah-compliant fund

and its opening to the public. It was re-launched on 15 January 2013 as ASM Shariah Growth Fund with a new

marketing strategy targeting investors who seek to invest in a fund that invests in growth stocks. The Fund

assumed its current name on 28 April 2014.


The objective of the Fund is to provide investors with an opportunity to achieve capital growth over the

medium to long term period by investing in Shariah-compliant securities.


Investment Strategy




terms of market capitalization listed on Bursa Malaysia, except:-

(a) those companies that have huge retained losses to the tune that its net asset value per share being less

than 50% of its par value - this is to mitigate the risk of investing in a potential insolvent company; and

(b) those companies that are expected to register earnings per share growth below 10% per annum.

The research process is based on relative performance analysis that is aimed at selecting a portfolio of stocks

among the stock universe as mentioned above that have the potential, as analyzed by the Manager, to have

good relative price performance. In view of its investment objective, the designated fund manager will trade

the securities depending on the securities market conditions.



deposit placements and/or other permitted investments. The equity allocation may be reviewed from time to

time depending on the global, regional and local economic as well as equity market conditions. This includes

assessing the relevant political, economic and business environment prior to making investment decisions.

Asset Allocation



securities



placements and/or other permitted investments.




38






Risk Management













39


5.1.6 PMB SHARIAH MID-CAP FUND

Fund Profile


Type of Fund Growth

General Information

The Fund was launched as ASM First Public Fund on 20 April 1992 and open to the public. Unit Holders

approved on 4 July 2013 the change of the Fund’s investment objective to make it a Shariah-compliant fund,

focusing the Fund to invest in securities that comply with Shariah requirements. It was re-launched on 7 March

2014 as ASM Shariah Mid-Cap Fund with a new marketing strategy targeting investors who seek to invest in a

fund that invests in medium sized listed companies. The Fund assumed its current name on 28 April 2014.


The objective of the Fund is to achieve capital growth over the medium to long-term period by investing

primarily in medium sized Shariah compliant companies in terms of market capitalization.


Investment Strategy



It shall invest primarily in a diversified portfolio of Shariah-compliant equity and equity-related securities of

medium sized companies with market capitalization of between RM1 billion and RM7 billion at the point of

purchase. However, the Fund may invest up to 20% of its NAV in securities of Shariah-compliant companies

with market capitalization in excess of RM7 billion.

The portfolio construction process is research driven with fundamental analysis conducted among the

companies derived from the process as mentioned above. In identifying investable listed companies among

them, the Manager relies on fundamental research where the financial strength including track records, the

company’s prospects, business operation and top management of the companies are considered. Other

valuation measures include price to earnings (PE), PE to growth, discounted cash flow, price to revalued net

asset value and price to book depending in which sector the companies operate and whether the operations

are perpetual or for a defined period. Analysis are also made on revenue growth, profit margins, sustainable

earnings, balance sheet and cash flow. In addition, prospects for the economies and sectors in which the

companies operate are also assessed. In view of its investment objective, the designated fund manager will

trade the securities depending on the securities market conditions.

The Fund will maintain equity exposure within a range of 70% to 99.5% of its NAV. The remaining of the Fund’s

NAV shall be invested in Islamic money market instruments, Islamic deposit placements, sukuk and/or other


Asset Allocation



securities

Minimum 70% Maximum 99.5%



investments.




40






Risk Management













41


5.1.7 PMB SHARIAH INDEX FUND

Fund Profile


Type of Fund Index

General Information

The Fund was launched on 19 February 1969 as Kumpulan Modal Bumiputera Yang Kedua for Bumiputera

investors. Unit Holders approved on 23 November 2000 the change of its investment objective to an index

tracking fund and its opening to the public. The Fund was re-launched as ASM Index Fund on 25 March 2002.

Subsequently on 19 July 2012, Unit Holders approved the Fund to be Shariah-compliant while maintaining it

as an index-tracking fund. It was re-launched as ASM Shariah Index Fund on 15 January 2013. The Fund

assumed its current name on 28 April 2014.


The objective of the Fund is to provide investors with the opportunity to gain reasonable return and capital

growth in the medium to long term period by investing in Shariah-compliant securities whilst at the same time

the Manager attempts to match closely its performance with the performance of the FTSE Bursa Malaysia EMAS

Shariah Index (FBMSHA).


Investment Strategy

The Fund shall invest in a diversified portfolio of Shariah-compliant equity securities listed on Bursa Malaysia,

primarily in stocks constituent of the FBMSHA.

It is a passively managed index fund whereby the Fund Manager constructs the Fund’s investment portfolio

based on an index sampling approach by investing not less than 60% of the Fund’s NAV in the top 15

constituent stocks of the FBMSHA that represent approximately 63% of the market capitalization of the index

(as at 29 February 2016). The balance will be invested in the next remaining constituent stocks of FBMSHA and

any other Shariah-compliant securities listed on Bursa Malaysia.

Under normal circumstances, the Fund shall invest at least 90% of its NAV in equities with a minimum 60%

among the top 15 constituent stocks of the FBMSHA. However equity investment of the Fund shall not exceed

99.5% of its NAV. The balance will be placed Islamic money market instruments, Islamic deposit placements


Asset Allocation



securities

Minimum 90% (with a minimum 60% among the top 15

constituent stocks of FBMSHA) and maximum 99.5%.


deposit placements and/or other permitted

investments.

The remaining balance of the Fund’s NAV not invested

in the above.


The benchmark for the Fund is FBMSHA. The index comprises the constituents of the FBM EMAS that are

Shariah-compliant according to the SAC screening methodology. The FBMSHA has been designed to provide

investors with a broad benchmark for Shariah-compliant investment. It was launched on 22 January 2007 and

developed using a base value of 6,000 as of 31 March 2006.


42


The 5 top industrial sector breakdown of the FBMSHA by the market capitalization as at 29 February 2016 was

as below:

Sector No of

Constituents

Total Market

Capitalization (RM mil) Weight (%)

Telecommunications 6 78,136 18.45

Industrial Goods & Services 44 57,909 13.67

Food & Beverages 13 49,890 11.78

Utilities 5 51,141 12.08

Oil & Gas 21 47,756 11.28

Total 89 274,832 67.26

Source: http://www.ftse.com/Indices/FTSE_Bursa_Malaysia_Index_Series/index.

The FBMSHA is subject to the FTSE Bursa Malaysia index rules and calculation methodology. To be eligible for

inclusion in the FBMSHA, any stock is subject to the following screening:-

Eligible Securities

All classes of ordinary shares in issue are eligible for inclusion, subject to conforming to all other rules of

eligibility, free float and liquidity.

• Free Float

Free float is share capital freely available for trading. Each company is required to have at least 15% of

free float to be eligible for inclusion. The free float excludes restricted shareholding like cross holdings,

significant long term holdings by founders, their families and/or directors, restricted employee share

schemes, government holdings and portfolio investments subject to a lock in clause, for the duration of

that clause.

A free float factor is applied to the market capitalization of each company in accordance with the free float

bands specified in the FTSE Bursa Malaysia ground rules. The factor is used to determine the attribution

of the company's market activities in the index.

• Liquidity

A liquidity screen is applied to ensure the company's stocks are liquid enough to be traded. An existing

constituent which does not turnover at least 0.04% of its shares in issue (after the application of any

investability weightings) based on its median daily trade per month for at least eight or the 12 month prior

to the semi-annual review will be removed.

• Shariah Compliance

The general criteria, as determined by the SAC, stipulate that the Shariah-compliant companies must not

be involved in any of the following core activities:

a. Financial services based on riba (interest);

b. Gambling;

c. Manufacture or sale of non-halal products or related products;

d. Conventional insurance;

e. Entertainment activities that are non-permissible according to Shariah;

f. Manufacture or sale of tobacco based products or related products;

g. Stockbroking or share trading in Shariah non-compliant securities; and

h. Other activities deemed non-permissible according to Shariah.

The FBMSHA is calculated every 60 seconds on a real time basis. Its constituents are reviewed semi-annually

in June and December by the FTSE Bursa Malaysia Index Advisory Committee.


43


You may obtain information on the FBMSHA from the business section of major daily newspapers and financial

periodicals, Bursa Malaysia's website at http://www.bursamalaysia.com and FTSE Group's website at

http://www.ftse.com.

The calculation of the FBMSHA is provided by FTSE. Therefore, the accuracy and completeness of the

calculation of FBMSHA may be affected by data, system, operational and statistical error of the index provider.

Circumstances that May Lead to Tracking Errors

The Fund potentially exhibits tracking error as it may not follow exactly the movement of the FBMSHA where

it may outperform or underperform the index. The tracking error may arise due to the following reasons:

a. the Fund’s investment does not fully replicate the FBMSHA stock constituents as it emphasizes on the top

15 of the FBMSHA which represent only approximately 65% of the index;

b. the Fund’s underweight positions in any of the top 15 of the FBMSHA;

c. the Fund’s investment in securities other than the top 15 components of the FBMSHA as investment cannot

exceed the index weight;

d. the Fund’s non-investment in lower weightage constituent stocks that outperform the index;

e. the Fund's equity investment of between 90% and 99.5% whereas the index is 100% invested at all times;

and

f. fees and expenses of the Fund such as management fees, trustee fees, other indirect fees and transaction

costs which are charged to the Fund, contributing variance between the return of the Fund and its

performance benchmark.

The error may be minimized by rebalancing the investments in the Fund at the beginning of the subsequent

months to reflect the changes to the composition of the weightings of shares in the FBMSHA.

Accordingly, a monthly analysis of the portfolio is conducted to ensure that tracking errors are within an

acceptable level, the investment weightings are within the tolerance limit, and a minimum 60% of the Fund’s

NAV is in FBMSHA top 15 major component stocks.

Policy on Investment Portfolio Rebalancing

The Fund is rebalanced at the beginning of the month to reflect the changes to the composition of or the

weightings of shares in the FBMSHA at the end of the preceding month. The rebalancing process is done when

the NAV of the stock in the portfolio exceeds its respective weighting in the FBMSHA. The shares of that

particular stock are disposed off to reduce the weighting to match the level of stock weighting of FBMSHA.

However, for stocks which cost of investment is higher than the market value, the disposal may be done within

a 3-month grace period to minimize any potential loss.



Risk Management



44


Top 10 constituents of the FBMSHA versus Top 10 stocks of the Fund as at 29 February 2016:

FBMSHA FUND

Constituent % Weight Stock % NAV

Tenaga Nasional Bhd 10.92 Tenaga Nasional Bhd 10.90

Axiata Group Bhd 6.29 Axiata Group Bhd 6.24

Sime Darby Bhd 5.70 Sime Darby Bhd 5.66

Petronas Chemicals Group Bhd 4.59 Petronas Chemicals Group Bhd 4.61

Digi.Com Bhd 4.34 Digi.Com Bhd 4.31

IHH Healthcare Bhd 4.22 IHH Healthcare Bhd 4.15

Petronas Gas Bhd 4.12 Petronas Gas Bhd 4.12

IOI Corporation Berhad 4.07 IOI Corporation Berhad 4.02

Maxis Bhd 3.79 Maxis Bhd 3.85

Telekom Malaysia Bhd 3.46 Telekom Malaysia Bhd 3.48

Total 51.50 51.34







There is no guarantee or assurance of exact or identical replication at any time of the performance

of the FBMSHA.

The FBMSHA composition may change and the component securities of the FBMSHA may be de-

listed.

The investment of the Fund may be concentrated in securities of the top 15 constituent stocks of the

FBMSHA.


45


5.1.8 PMB SHARIAH PREMIER FUND

Fund Profile


Type of Fund Growth

General Information

The Fund was launched on 14 August 1972 as Kumpulan Modal Bumiputera Pelaboran Perwira for Bumiputera

investors only. It was opened to the public and re-launched as ASM Premier Fund on 12 June 1995. Unit

Holders approved on 18 October 2012 the change of the Fund’s investment objective to make it Shariah-

compliant. It was subsequently re-launched as ASM Shariah Premier Fund on 15 January 2013 targeting

investors who seek to invest in a fund investing in large capitalized companies. The Fund assumed its current

name on 28 April 2014.


The objective of the Fund is to provide opportunities for investors to achieve capital growth over the medium

to long term period through investment in any of the 50 largest Shariah-compliant stocks by market

capitalization (at the time of purchase) listed on the Bursa Malaysia.


Investment Strategy

The Fund shall invest in a diversified portfolio of Shariah-compliant equity and equity-related securities listed

on any recognized stock exchange in Malaysia, primarily among any of the 50 largest Shariah-compliant stocks

in terms of market capitalization (at the point of purchase) listed on Bursa Malaysia. It may invest not more

than 30% of its NAV in any of the next top 25 largest listed companies based on market capitalization listed on

Bursa Malaysia.

The Fund will focus on companies that are stable with growth potential and/or have dividend yield of 3.0%

per annum or above. The research process is based on relative performance analysis that is aimed at selecting

a portfolio of stocks among the stock universe as mentioned above that have the potential, as analyzed by the

Manager, to have a relative good performance. In view of its investment objective, the designated fund manager

will trade the securities depending on the securities market conditions.

The Fund will maintain equity exposure within a range of 70% to 99.5% of its NAV. The remaining of the Fund’s

NAV shall be invested in Islamic money market instruments, Islamic deposit placement, sukuk and/or other


Asset Allocation



securities




investments




46






Risk Management













47


5.1.9 PMB SHARIAH DIVIDEND FUND

Fund Profile


Type of Fund Income

General Information

The Fund was established on 13 June 2008 as ASM Shariah Dividend Fund and open to the public. It assumed

its current name on 28 April 2014.


The objective of the Fund is to provide investors with an opportunity to gain consistent and stable income

stream that is potentially higher than the average fixed deposit rates.


Investment Strategy




terms of market capitalization listed on Bursa Malaysia, with the exclusion of the following:-

(a) those companies that have huge retained losses to the tune that its net asset value per share being less

than 50% of its par value - this is to mitigate the risk of investing in a potential insolvent company; and

(b) those companies that are expected to declare and pay annual dividend of less than 3% net based on the

prevailing price.

The research process is based on relative performance analysis that is aimed at selecting a portfolio of stocks

among the stock universe as mentioned above that have the potential, as analyzed by the Manager, to have

good relative price performance. In view of its investment objective, the designated fund manager will trade

the securities depending on the securities market conditions.



deposits placement, sukuk and/or other permitted investments.

Asset Allocation



securities



deposits placement, sukuk and/or other permitted

investments



The equity allocation may be reviewed from time to time depending on the global, regional and local economic

as well as equity market conditions. This includes assessing the relevant political, economic and business

environment prior to making investment decisions.


48


Temporary Defensive Position




Risk Management













49


5.1.10 PMB SHARIAH TNB EMPLOYEES FUND

Fund Profile



General Information

The Fund was launched on 28 August 1995 as Amanah Saham Pekerja-Pekerja TNB. It is meant for the

employees and retirees of Tenaga Nasional Berhad (TNB), members of the Board of Directors of TNB and any

corporations, bodies, clubs, associations and/or cooperatives related to TNB and/or the employees or retirees

of TNB, as may be recognized and/or approved by TNB. Unit Holders approved on 4 September 2013 for the

change of the Fund’s investment objective, making it a Shariah-compliant fund. The Fund was subsequently

renamed ASM Shariah TNB Employees Fund on 7 March 2014. It assumed its current name on 28 April 2014.


The objective of the Fund is to provide investors with an opportunity to gain steady income and to achieve

capital growth over the medium to long term period by investing in a portfolio of investments that comply with

Shariah principles.


Investment Strategy












or for a defined period. Analysis are also made on revenue growth, profit margins, sustainable earnings, balance

sheet and cash flow. In view of its investment objective, the designated fund manager will trade the securities

depending on the securities market conditions.





deposits placement, sukuk and/or other permitted investments.


50


Asset Allocation



securities


The remaining will be invested in Islamic money

market instruments, Islamic deposits placement,

sukuk and/or other permitted investments.



The equity allocation may be reviewed from time to time depending on the global, regional and local economic

as well as equity market conditions. This includes assessing the relevant political, economic and business

environment prior to making investment decisions.





Risk Management













51


5.2 MIXED ASSET FUND

5.2.1 PMB SHARIAH TACTICAL FUND

Fund Profile

Category of Fund Mixed Asset (Shariah)


General Information

The Fund was initially launched on 29 October 1979 as Kumpulan Modal Bumiputera Yang Kesebelas for

Bumiputera investors. Unit Holders approved on 4 July 2013 the change of the Fund’s investment objective,

making it a Shariah-compliant fund that is tactical in nature and opened to the public. The Fund was re-

launched as ASM Shariah Tactical Fund on 25 October 2013. It assumed its current name on 28 April 2014.


The objective of the Fund is to achieve capital growth over the medium to long term period by investing in a

portfolio of investments that comply with Shariah principles.


Investment Strategy

The Fund adopts a tactical asset allocation strategy and has the flexibility to rebalance its allocation between

the different asset classes of Shariah-compliant equity and equity-related securities, and non-equity

investments including sukuk, Islamic money markets instruments, Islamic deposit placements and/or other

permitted investments, depending on market conditions. Its equity allocation or non-equity allocation may

range between 0% and 100% of the NAV of the Fund.

The Fund will be actively managed through the use of tactical strategies and frequent portfolio reallocation

between Shariah-compliant equity and sukuk, Islamic money market instruments, Islamic deposit placements

and/or other permitted investments. The asset allocation can vary from a defensive to an aggressive asset

allocation at any given time, depending on the market environment and/or based on the Manager’s view in

order to take advantage of the short term market inefficiencies in different asset classes and to navigate

changing markets with the objective of achieving sustainable, long term positive returns. The frequency of

trading will depend on the securities market conditions.











balance sheet and cash flow.

The non-equity portion of the Fund will be invested in sukuk, Islamic money market instruments, Islamic

deposit placements and/or other permitted investments. Where investment climate is deemed to be

unfavourable and weakness in equity is expected, the Fund will raise its holdings in sukuk, Islamic money

market instruments and/or Islamic deposit placements.


52


For investment in sukuk, credit evaluation and profit/interest rate direction are the most critical risk factors

to be considered. As for credit evaluation, the fund manager set stringent investment criteria in assessing

sukuk, covering mainly the nature of business, management, cash flow, gearing level and collateralization. In

case the Fund invests in such instrument, only investment grade sukuk rated by either RAM or MARC will be

considered. To be prudent, the Manager adopts a strategy by:-

i) selecting only instruments with a minimum credit rating of A2 as per the rating scale of RAM or its

equivalent for long term instruments and P2 or its equivalent for short–term instruments; and/or

ii) having a longer or shorter duration of debt instruments depending on the expected direction of the KLIRR.

For Islamic money market instruments and/or Islamic deposit placement the selection will be based on criteria

such as liquidity, prevailing rate and tenure. The short-term nature of the sukuk, Islamic money market

instruments and/or Islamic deposit placements will allow the Manager to easily switch to equities when the

stock market is favourable.

Asset Allocation



securities

Minimum 0% and maximum 100%



investments.


Depending on the market conditons as analyzed by the Manager.



Risk Management



Two (2) times the performance of a one-year adjusted average rate of the Kuala Lumpur Islamic Reference

Rate (KLIRR). The performance of the Fund will be benchmarked using the absolute return approach computed

as below:-

Assuming the KLIRR’s one-year adjusted average rate was 3% per annum, the performance benchmark

for the Fund would be 6%, derived from:

= 2 X one-year adjusted average rate of KLIRR, for the period under review

= 2 X 3%

= 6%

The KLIRR is the daily average of the Islamic Interbank rates and updated daily at 11.00 a.m. (Malaysian

business hour). You may obtain the information on the one-year KLIRR through BNM website at

http://iimm.bnm.gov.my.








53


5.3 BALANCED FUND

5.3.1 PMB SHARIAH BALANCED FUND

Fund Profile

Category of Fund Balanced (Shariah)


General Information

The Fund was launched on 22 October 1977 as Kumpulan Modal Bumiputera Yang Kesembilan for Bumiputera

investors. It was opened to the public following its re-launch as ASM Tanjung Piai Balanced Fund on 6

December 1997 with a new investment objective as a balanced fund. It was renamed ASM Balanced Fund on

26 June 2001. Unit Holders approved on 19 July 2012 the change of the Fund’s investment objective, making it

a Shariah-compliant balanced fund. The Fund was renamed PMB Shariah Balanced Fund on 15 January 2013.

It assumed its current name on 28 April 2014.


The objective of the Fund is to provide investors with an opportunity to earn regular income and capital growth

in the medium to long term through investment in Shariah-compliant securities.


Investment Strategy

The Fund shall invest primarily in a diversified portfolio that includes Shariah-compliant equity and equity

related securities, Islamic money market instruments, Islamic deposit placements, sukuk and/or other

permitted investments in Malaysia.










or for a defined period. Analysis are also made on revenue growth, profit margins, sustainable earnings, balance

sheet and cash flow. In view of its investment objective, the designated fund manager will trade the securities

depending on the securities market conditions.





considered. To be prudent, the Manager adopts a strategy by:-

i) selecting only instruments with a minimum credit rating of A2 as per the rating scale of RAM or its

equivalent for long term instruments and P2 or its equivalent for short–term instruments; and/or

ii) having a longer or shorter duration of debt instruments depending on the expected direction of the KLIRR.

Under normal circumstances, allocation to equity and equity-related securities ranges from 40% to 60% of the

NAV of the Fund. The balance will be invested in Islamic money market instruments, Islamic deposit

placements, sukuk and/other permitted investments.


54


Asset Allocation



securities



deposit placements, sukuk and/other permitted

investments.







Risk Management



A combination of the FBMSHA on the equity performance and a one-year adjusted average rate of the Kuala

Lumpur Islamic Reference Rates (KLIRR) for the sukuk, Islamic money market instruments, Islamic deposit

placements and/or other permitted investment performance, based on a 50:50 ratio on the basis that the Fund

is a balanced unit trust fund and is expected to have a balanced asset allocation in the long term.

Assuming the FBMSHA gave a return of 10% during a year under review and the average KLIRR was 3% per

annum, the benchmark return for the Fund would be 6.5%, derived from:

50% of the performance of FBMSHA + 50% of the performance of KLIRR

= (50% x 10%) + (50% x 3%)

= 5.0% + 1.5%

= 6.5%

FBMSHA is an index comprising the constituents of the FBM EMAS that are Shariah-compliant according to the

SAC screening methodology. KLIRR is the daily average of Islamic interbank rates and updated daily at 11.00

a.m. (Malaysian business hour).

You may obtain the information on the FBMSHA from the Bursa Malaysia website and major daily newspapers

while the one year adjusted average rate of the KLIRR through Bank Negara Malaysia (BNM) website.








55


5.4 MONEY MARKET FUND

5.4.1 PMB SHARIAH CASH MANAGEMENT FUND

Fund Profile

Category of Fund Money Market (Shariah)

Type of Fund Income

General Information

The Fund was launched on 1 November 1969 as Kumpulan Modal Bumiputera Yang Ketiga for Bumiputera

investors. Unit Holders approved on 5 May 2005 the change of the investment objective of the Fund into an

Islamic money market fund. As a result, the name of the Fund was changed to ASM Syariah Money Market Fund.

The Fund changed its name again on 5 April 2012 to ASM Shariah Cash Management Fund while still

maintaining its objective but with additional features. It assumed its current name on 28 April 2014.


The objective of the Fund is to provide investors with high degree of liquidity while maintaining capital stability

through investments primarily in Shariah approved money market instruments and debt securities.


Investment Strategy

The Fund is essentially managed to provide liquidity to meet the near and short term cash flow requirements

of its Unit Holders while providing returns. Its investments are largely confined to Islamic money market

instruments, Islamic deposit placements and sukuk issued in Malaysia that mature within 365 days.

Nevertheless the Fund can invest up to 10% of its NAV in Islamic money market instruments, Islamic deposit

placements or sukuk with maturity period exceeding 365 days but not longer than 732 days.

The selection of the Islamic money market instruments will be based on criteria such as liquidity,

diversification and tenure. The Manager adopts a prudent strategy in forming the portfolio of Islamic money

market instruments which is in accordance with the Fund’s investment objective and the Manager’s

assessment of investment prospects in line with the underlying profit/interest rate level and economic outlook.

The Manager will review the asset allocation from time to time to facilitate redemption requests while

optimizing income from investments.

The Fund shall invest up to 100% of its NAV in near term Islamic money market instruments, Islamic deposit

placement and/or sukuk that are liquid and conform to the Shariah principles. Notwithstanding the Fund can

invest up to 10% for short dated sukuk maturing between 365 and 732 days.

Asset Allocation



placements and/or other permitted investments:- 100%

- maturing within 365 days. Minimum 90%

- maturing between 365 and 732 days. Maximum 10%

The asset allocation will be reviewed from time to time to facilitate redemption request while optimizing

income from investments.


56


Risks of the Fund


Risk Management

Please refer to Section 5.7 for detailed explanation of risk management strategies employed by the Manager .


BNM Overnight Islamic Interbank Rate

The Islamic interbank rate is the daily weighted average rate of the Mudharabah interbank investment at the

Islamic Interbank Money Market in Kuala Lumpur, where the individual rates being weighted accordingly by

the volume transactions at those rates.

You may obtain the information on the Islamic interbank rate by accessing Islamic Interbank Money Market,

Bank Negara Malaysia website at http://iimm.bnm.gov.my.







Investment in the Fund is not the same as placement in deposits with a financial institution. There

are risks involved and investors should rely on their evaluation to assess the merits and risks

when investing in the Fund.


57


5.5 SHARIAH-COMPLIANT AND SHARIAH APPROVAL PROCESS

All Shariah-compliant funds must at all times and all stages of its operation comply with the Shariah principles.

In the first place, the funds must be raised, operated and redeemed, if any, by investor on the basis of contracts

which are acceptable by Shariah.

In terms of investments, there are two significant Shariah-compliant matters that need to be adhered to. First

is the securities to be invested and secondly the companies of which the securities are issued. In making

investments, both securities and companies must be Shariah-compliant.

Capital Market Instruments

Since the establishment of the SAC, several capital market instruments have been evaluated and approved;

they are:

• Ordinary shares;

• Warrants/Transferable Subscription Rights (if the underlying is Shariah-compliant);

• Call warrants (if the underlying is Shariah-compliant);

• Non-cumulative preference shares;

• Redeemable preference shares;

• Crude palm oil futures contracts;

• Crude palm kernel oil futures contracts;

• Khazanah zero-coupon sukuk;

• Single Stock Futures (if the underlying is Shariah-compliant); and

• Futures Contract Index (if the index component is made up of Shariah-compliant securities)

As for the Shariah-compliant funds, investments in any of the above instruments depend on their respective

objective and investment strategy and the capital instruments that are allowed to be used to achieve the

objective.

Shariah Adviser

The Guidelines stipulate that Shariah-compliant unit trust funds are required to appoint a Shariah committee

or Shariah adviser. At PMB Investment, we have appointed a Shariah Adviser whose details are in Section 10.9.

The investment portfolio of Shariah-compliant unit trust funds must invest only in Shariah-compliant

securities/instruments. As a general rule, for investment in equities, we use the approved List of Shariah-

compliant securities issued by the SAC (Approved List), which is currently updated in May and November every

year. However, in cases where the status of securities has not been determined by the SAC due to reasons such

as initial public offer, the interim status of the securities will be determined by our Shariah Adviser in

accordance with the SAC screening methodology until such time when the SAC issues its ruling on the

securities.

When investing in Islamic money market instruments, Islamic deposit placements, sukuk and/or other

permitted investments for Shariah-compliant unit trust funds, they must also be Shariah-compliant as

determined by the Shariah Advisory Council of Bank Negara Malaysia and/or the SAC, as the case may be.

Classification of Shariah Securities by the SC

For companies listed on Bursa Malaysia, the Funds’ investments must be strictly confined to the companies in

the prevailing Approved List.

In classifying the securities listed on Bursa Malaysia, the SAC received input and support from the SC. The SC

gathered information on the companies from various sources, such as company annual financial reports,

company responses to survey forms and through inquiries made to the respective company’s management.

The SAC adopts a two-tier quantitative approach, which applies the business activity benchmarks and the

financial ratio benchmarks, in determining the Shariah status of the listed securities. Hence, the securities will

be classified as Shariah-compliant if they are within the business activity benchmarks and the financial ratio

benchmarks.


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Quantitative

Assessment

Shariah

Screening

Methodology

Business Activity Benchmarks

Business activity

benchmarks

5% Conventional banking and insurance, gambling, liquor and

liquor related activities, pork and pork related activities,

non-halal food and beverages, Shariah non-compliant

entertainment, tobacco, interest income from conventional

accounts and instruments, (including interest income

awarded arising from a court judgement or arbitrator and

dividends from Shariah non-compliant investments) and

other activities deemed non-compliant according to Shariah.

20% Hotel and resort operations, share trading, stockbroking

business, rental received from Shariah non-compliant

activities and other activities deemed non-compliant

according to Shariah.

Financial Ratio

Benchmarks

33% i. Cash over total assets: Cash only includes cash placed

in conventional accounts and instruments, whereas

cash placed in Islamic accounts and instruments will be

excluded from the calculation.

ii. Debt over total assets: Debt only includes interest

bearing debt whereas Islamic financing or sukuk is

excluded from the calculation.

Each ratio, which is intended to measure riba and riba-

based elements within a company’s statements of

financial position, must be less than 33%.

In addition to the above two-tier quantitative criteria, the SAC also takes into account the qualitative aspect

which involves public perception or image of the company’s activities from the perspective of Islamic teaching.

Special Purpose Acquisition Companies (SPACs)

In classifying securities of SPACs, the SAC considers the following criteria:

(i) The proposed business activity should be Shariah compliant;

(ii) The entire proceeds raised from the initial public offering should be placed in Islamic accounts; and

(iii) In the event that the proceeds are invested, the entire investment should be Shariah compliant.

Shariah-compliant securities include ordinary shares and warrants (issued by the companies themselves). This

means that warrants are classified as Shariah-compliant securities provided the underlying shares are also

Shariah compliant. On the other hand, loan stocks and bonds are Shariah non-compliant securities unless they

are structured based on the SAC’s approved Shariah rulings, concepts and principles.


59


Timing for disposal of Shariah non-compliant securities

(i) “Shariah-compliant securities” which are subsequently re-classified as “Shariah non-compliant”

These refer to securities which were earlier classified as Shariah-compliant but due to certain factors such

as changes in the companies’ business operations and financial positions, are subsequently reclassified as

Shariah non-compliant.

In this regard, if on the date this updated list takes effect (27 November 2015), the respective market price

of Shariah non-compliant securities exceeds or is equal to the investment cost, investors who hold such

securities must dispose them off. Any dividends received up to the date of the announcement and capital

gains arising from the disposal of Shariah non-compliant securities on the date of the announcement can

be kept by the investors. However, any dividends received and excess capital gain from the disposal of

Shariah non-compliant securities after the date of the announcement should be channeled to baitulmal

and/or charitable bodies.*

On the other hand, investors are allowed to hold their investment in the Shariah non-compliant securities

if the market price of the said securities is below the investment cost. It is also permissible for the investors

to keep the dividends received during the holding period until such time when the total amount of

dividends received and the market value of the Shariah non-compliant securities held equal the investment

cost. At this stage, the Fund will dispose of their holding.

In addition, during the holding period, investors are allowed to subscribe to:

(a) any issue of new securities by a company whose Shariah non-compliant securities are held by the

investors, for example rights issues, bonus issues, special issues and warrants (excluding securities

whose nature is Shariah non-compliant e.g. loan stocks); and

(b) Shariah-compliant securities of other companies offered by the company whose Shariah non-

compliant securities are held by the investors, on condition that they expedite the disposal of the

Shariah non-compliant securities.

(ii) Shariah non-compliant securities

The SAC advises investors who invest based on Shariah principles to dispose off any Shariah non-

compliant securities which they presently hold, within a month of knowing the status of the securities.

Any gain made in the form of capital gain or dividend received before or after the disposal of the

securities has to be channeled to baitulmal and/or charitable bodies. The investor has a right to retain

only the investment cost.

Note: Investment cost may include brokerage cost or other related.

Foreign Shariah-compliant Securities

For investment in foreign securities, the Funds are only allowed to invest in securities which are on the

Approved List of the Dow Jones Islamic Market Index (DJIM). With regard to the issue of delisting of Shariah

compliant securities from DJIM and Shariah non-compliant foreign securities, the Funds are to abide by the

same processes as laid down by the SAC. In the rare event that the Fund wishes to invest in foreign securities

not covered by DJIM, the Funds must submit to the Shariah Adviser the latest information pertaining to

business activities, complete financial statements and other related information on the relevant company to

enable the Shariah Adviser to carry out stock screening. The decision of the Shariah Adviser is final.


60


5.6 TEMPORARY DEFENSIVE POSITION

Applicable to PMB Al-Aiman, PMB Mutiara, PMB Bestari, PMB SAF, PMB SGF, PMB SMCF, PMB SDF and PMB

STEF

The Manager may also take temporary defensive positions that may be inconsistent with the Fund’s principal

strategy in attempting to respond to adverse economic and/or political conditions or potential sharp downturn

in the equities market that may likely lead to a substantial capital loss.

In such circumstances, the Manager may reallocate up to 100% of the Fund’s equity investments into other

permitted investments, including sukuk, Islamic money market instruments and/or Islamic deposit

placements.

Applicable to PMB SPF

The Manager may also take temporary defensive positions that may be inconsistent with the Fund’s main

strategy in attempting to respond to adverse economic and/or political conditions or potential sharp downturn

in the equities market that may be likely leading to substantial capital loss. In such circumstances, the Manager

may reallocate up to 50% of the Fund’s equity investments into other permitted investments, including sukuk,

Islamic money market instruments and/or Islamic deposit placements.

Applicable to PMB SBF

The Manager may also take temporary defensive positions that may be inconsistent with the Fund’s main

strategy in attempting to respond to adverse political and/or economic conditions or potential sharp downturn

in the equities market that likely lead to a substantial capital loss. Under an extremely bearish market condition

the Fund may reduce its equity and equity-related exposure to below 40%.

5.7 RISK MANAGEMENT STRATEGIES

Applicable to PMB Al-Aiman, PMB Mutiara, PMB Bestari, PMB SAF, PMB SGF, PMB SMCF, PMB SPF, PMB SDF

and PMB STEF

The Manager adopts an active investment strategy to manage the risks of equity investment of the Fund. The

market volatility may lead to capital loss which affects the Fund’s return. Stock selection and diversification of

investment in equity securities are keys to mitigating the overall risk of the Fund.

The equity market risk of the Fund is prudently managed through the following strategies:-

• Stock selection whereby the Manager employs fundamental approach to ensure selection of quality

Shariah-compliant equity which takes into account information gathered during company visits, potential

income and earnings growth, management quality and past track records of the companies are considered;

and

• Diversification into different sectors that gives the Manager flexibility to move the Fund’s equity exposure

actively within the asset allocation range depending on capital market conditions. The flexibility allows

the Manager to remain invested during market upturns or liquidate investments to preserve its capital

during the market downturns.

To manage the stock specific risk of the Fund, in-depth company analysis is conducted. Stock selection is based

on stringent investment criteria which include the company’s financial strength, business operations and

management and good corporate governance. The Fund also takes into account trading liquidity to manage

the stock specific risk.

For investment in sukuk, credit evaluation and profit rate direction are the most critical risk factors to be

considered. As for credit evaluation, the fund manager has set stringent investment criteria in assessing sukuk,

covering mainly the nature of business, cash flow, gearing level, management and collateralization. In case the

Fund invests in such instrument, only investment grade sukuk rated by either RAM or MARC will be

considered. As for the profit/interest rate direction, the expected direction of KLIRR will be taken into

consideration.


61


In addition, regular reporting to and consulting with the Investment Committee members are held at periodical

meetings. The reporting to the Investment Committee consists of, amongst others, the review on the

performance of the Fund and the relevant markets, immediate and future investment approach and asset

allocation strategy, and compliance status.

The Manager may take a temporary defensive position as stated in Section 5.6 above.

Applicable to PMB SIF

The Manager employs reasonable steps in managing the risks through close monitoring of the economic and

investment climate, market development and industry updates, and making appropriate adjustments to the

Fund’s asset allocation to minimize the adverse impact on any particular stock or the market as a whole.

However as the intention of the Fund is to track the FBMSHA, the Fund will invest a minimum of 80% in equity

in any adverse condition.

In addition, regular reporting to and consulting with the Investment Committee members are held at periodical




Applicable to PMB STF

The Manager adopts an active trading strategy to manage the risks of equity investment of the Fund. The price

fluctuation caused by the market volatilities may lead to capital loss which affects the return of both equity and

non-equity investments. The Fund’s market risk is prudently managed through tactical asset allocation

approach based on fundamental and technical analysis. The asset allocation exposure may differ from time to

time depending on the capital market conditions. The Manager may reallocate up to 100% of the Fund’s equity

investments into other Shariah-compliant securities including Islamic money market instruments and/or

Islamic deposits and where applicable sukuk.

For equity investment, in-depth company analysis is conducted. Stock selection is based on stringent

investment criteria which include the company’s financial strength, business operations and management. The

valuations are thoroughly analyzed to ensure the Fund invests in companies that are viable and may produce

return in the long term. The Fund also takes into account diversification and trading liquidity to manage the

stock specific risk.

For non-equity investment in sukuk, credit evaluation and profit/interest rate direction are the most critical

risk factors to be considered. As for credit evaluation, the fund manager has set stringent investment criteria

in assessing sukuk, covering mainly the nature of business, cash flow, gearing level, management and

collateralization. The Fund only invests in investment grade sukuk rated either by RAM or MARC. For

profit/interest rate risk management, the Fund’s sukuk exposure will be managed by adjusting its average

tenure. If the profit/interest rate is expected to go up in the future, the Fund will invest in shorter tenure

instruments to mitigate the impact of decrease in sukuk’s prices.

In addition, regular reporting and consulting with the Investment Committee members are held at periodical

meetings. The reporting to the Investment Committee consists of, amongst others, their view on the

performance of the relevant markets and the Funds, immediate and future investment strategies and asset

allocations, and compliance status.

Applicable to PMB SBF

The Manager adopts an active investment strategy to manage the risks of equity investment of the Fund. The

market volatility may lead to capital loss which affects the Fund’s return. Stock selection and diversification of

investment in equity securities are keys to mitigating the overall risk of the Fund.

The equity market risk of the Fund is prudently managed through the following strategies:-

• Stock selection whereby the Manager employs a fundamental approach to ensure selection of quality

Shariah-compliant equity which takes into account information gathered during company visits, potential

income and earnings growth, management quality and past track records of the companies are considered;

and


62


• The asset allocation exposure may differ from time to time depending on the condition of the capital

markets. Asset and sector allocations are based on thorough macroeconomic analysis. The Fund’s equity

exposure may increase to a maximum of 60% on the expectation that the stock market has a potential to

appreciate in the future. On a temporary defensive move, the Fund’s equity exposure may be reduced to

40% or below if the market is expected to decline.

To manage the stock specific risk of the Fund, in-depth company analysis is conducted. Stock selection is based

on stringent investment criteria which include the company’s financial strength, business operations and

management and good corporate governance. The Fund also takes into account trading liquidity to manage the

stock specific risk.

For investment in sukuk, credit evaluation and profit rate direction are the most critical risk factors to be

considered. As for credit evaluation, the fund manager set stringent investment criteria in assessing sukuk,

covering mainly the nature of business, management, cash flow, gearing level and collateralization. In case the

Fund invests in such instrument, only investment grade sukuk rated by either RAM or MARC will be considered.

As for the profit/interest rate direction, the expected direction of KLIRR will be taken into consideration.

The structure of the Fund is such that it is confined to instruments of short duration to maturity in order to

mitigate the impact of fluctuation in profit/interest rate on the performance of the Fund over the short term

while the credit risks it may face are mitigated by strict limits on concentration of investments and due

diligence in the credit assessments by ensuring investment grade credit ratings as mentioned above.


meetings. The reporting to the Investment Committee consists of, amongst others, their view on the

performance of the relevant markets and the Funds, immediate and future investment strategies and asset

allocations, and compliance status

Applicable to PMB SCMF

The Fund’s credit risk is prudently managed through exercising prudent selection of investments. A thorough

study on the credit worthiness of the issuer of the sukuk and the securities themselves will be undertaken by

the Manager.

The Fund will invest in quality short term to medium term instruments with minimum short term local credit

rating of P2 by RAM or MARC2 by MARC or minimum long term rating of A2 by RAM or A by MARC that conform

to the principles of Shariah. Short term instruments can be defined as instruments which mature within 365

days whilst medium term instruments can be defined as instruments which mature over 365 days but not more

than 2 years. Where the rating falls below the required minimum rating, the designated fund manager will

dispose of the instrument.





considered. As for the profit/interest rate direction, the expected direction of KLIRR will be taken into

consideration.

The structure of the Fund is such that it is confined to instruments of short duration to maturity in order to

mitigate the impact of fluctuation in profit/interest rate on the performance of the Fund over the short term

while the credit risks it may face are mitigated by strict limits on concentration of investments and due

diligence in the credit assessments by ensuring investment grade credit ratings as mentioned above.






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5.8 PERMITTED INVESTMENTS

The investments made by the Funds must conform with Shariah principles which generally exclude

conventional banking, insurance and financial institutions; gambling/gaming; alcoholic beverages; non-halal

food products; interest-bearing money market instruments; and other securities or instruments as determined

by the Shariah Adviser.

Unless otherwise prohibited by the relevant authorities or any relevant law and provided always that there is

no inconsistency with the objectives of the Fund, the Fund must invest strictly in the investments/securities

which comply with the Shariah principles and approved by the Shariah Adviser, the SAC or an international

Shariah standard setting body (if applicable).

The Funds currently do not invest in unlisted securities (except entitlements received from listed companies

in the existing portfolio), in overseas companies, securities lending and in the futures market. Nevertheless,

the Funds may invest in these securities in the future. For overseas investment, the value of the investment

will be limited to a maximum of 30% of the Fund’s NAV.

Applicable to PMB Al-Aiman, PMB Mutiara, PMB Bestari, PMB SAF, PMB SGF, PMB SMCF, PMB SIF, PMB SPF,

PMB SDF, PMB STEF, PMB STF and PMB SBF

Unless otherwise prohibited by the relevant authorities or any relevant laws and provided always that there

is no inconsistency with the objectives of the Fund, the Fund may invest in the following:

a. securities listed on the Bursa Malaysia or any other stock exchange approved by the Minister under the

CMSA and any exempt stock exchange declared by the Minister under the CMSA;

b. securities not listed for trading in a stock market of a stock exchange approved, or an exempt stock market

declared by the Minister under the CMSA, but have been approved for such listing and offered directly to

the Fund by the issuer or any entitled party;

c. securities not listed for trading in a stock market of a stock exchange approved, or an exempt stock market

declared by the Minister under the CMSA, which are offered directly to the Fund by the issuer and fulfill all

the conditions set out in the Guidelines;

d. foreign securities listed on the foreign stock exchange(s) subjects to the restrictions and rules imposed by

Bank Negara Malaysia and/or SC;

e. other Collective Investment Schemes (CIS), provided that:

i. the CIS must be regulated by a regulatory authority; which is for the fund constituted in Malaysia

must be approved by the SC and fund constituted outside Malaysia to be registered/

authorized/approved by the relevant regulatory authority in its home jurisdiction;

ii. operate on the principle of prudent spread of risk and its investment do not diverge from the general

investment principles;

iii. no cross-holding between the Fund and the target Fund for Fund operated by the same management

company; and

iv. all initial charges on the target fund are waived.

f. futures contracts and options traded in a futures market of an exchange company approved, or an exempt

futures market declared, by the Minister under the CMSA, must be for hedging purposes only;

g. participation in the lending of securities within the meaning of the Guidelines of Securities Borrowing and

Lending issued by SC (as amended from time to time) when permitted by the SC and/or other relevant

authorities;

h. an eligible money market (as defined in the Guidelines on including investments in an Eligible Market for

short-term papers such as Malaysian Government Securities, treasury bills, negotiable instruments of

deposit, repurchase agreements, Cagamas mortgage bonds, Bank Negara bills);

i. an eligible over-the-counter private debt securities market (as defined in the Guidelines);


64


j. securities that are traded in or under the rules of an Eligible Market which fulfill all the conditions set out

in the Guidelines;

k. warrants, provided that the warrants carry the right in respect of a security traded in or under the rules of

an Eligible Market.

l. derivatives:

i. consist of derivatives that are traded on exchange and traded over-the-counter;

ii. the underlying instruments should consist of permissible investments and include indices, deposit

rates and foreign exchange rates.

m. Structured Products, where the Manager must ensure that:

i. the counter party is an eligible issuer (for structured products issued in Malaysia) or an issuer

regulated by the relevant regulatory authority (for structured products issued outside Malaysia);

ii. the counter-party has a minimum long term rating by any domestic rating agencies.

n. deposits with financial institutions.


Subject to any conditions stipulated by the SC, PMB SCMF only invests primarily in Islamic short-term

debentures, short-term Islamic money market instruments and Islamic short-term deposits.

5.9 INVESTMENT RESTRICTIONS AND LIMITS

Applicable to PMB Al-Aiman, PMB Mutiara, PMB Bestari, PMB SAF, PMB SGF, PMB SMCF, PMB SIF, PMB SPF,

PMB SDF, PMB STEF, PMB STF and PMB SBF

The investments limits for the Funds are in line with the Guidelines as follows:-

•••• Exposure Limits

The value of a Fund’s investment in unlisted securities must not exceed 10% of a Fund’s NAV.

•••• Investment Spread Limits

a. The value the Fund’s investment in ordinary shares issued by any single issuer must not exceed 10%

of the Fund’s NAV. For PMB SIF whose principle objective is to track or replicate an index, the single

issuer limit may be exceeded provided that the investment in any component securities does not

exceed its respective weightings in the underlying index.

b. The value of the Fund’s investment in transferable securities and money market instruments issued

by any single issuer must not exceed 15% of the Fund’s NAV.

c. The value of the Fund’s placement in deposit placements with any single institution must not exceed

20% of the Fund’s NAV.

d. For investments in derivatives:

i. the exposure to the underlying assets must not exceed the investment spread limits being

stipulated under these limits; and

ii. the value of a Fund’s over-the counter (OTC) derivative transaction with any single counter-party

must not exceed 10% of the Fund’s NAV.

e. The value of the Fund’s investment in structured products issued by a single counter-party must not

exceed 15% of the Fund’s NAV.

f. The aggregate value of the Fund’s investment in transferable securities, money market instruments,

deposits, OTC derivatives and structured products issued by or placed with (as the case may be) any

single issuer/institution must not exceed 25% of the Fund’s NAV.

g. The value of the Fund’s investment in units/shares of any CIS must not exceed 20% of the Fund’s NAV.


65


h. The value of the Fund’s investment in transferable securities and money market instruments issued

by any group of companies must not exceed 20% of the Fund’s NAV. For PMB SIF whose principle

objective is to track or replicate an index, the single group limit may be exceeded provided that the

investment in any component securities does not exceed its respective weightings in the underlying

index.

•••• Investment Concentration Limits

a. The Fund’s investment in transferable securities (other than debentures) must not exceed 10% of the

securities issued by any single issuer.

b. The Fund’s investments in debentures must not exceed 20% of the debentures issued by any single

issuer.

c. The Fund’s investment in CISs must not exceed 25% of the units/shares in any one CIS.

d. The Fund’s investment in money market instruments must not exceed 10% of the instruments issued

by any single issuer. (Note: This limit does not apply to money market instruments that do not have a

pre-determined issue size.)


•••• Exposure Limits

a. The value of the Fund’s investment in permitted investments must not be less than 90% of the Fund’s

NAV.

b. The value of the Fund’s investment in permitted investments which have a remaining maturity period

of not more than 365 days must not be less than 90% of the Fund’s NAV.

c. The value of the Fund’s investment in permitted investments which have a remaining maturity period

of more than 365 days but fewer than 732 days must not exceed 10% of the Fund’s NAV.

•••• Investment Spread Limits

a. The value of the Fund’s investment in debentures and money market instruments issued by any single

issuer must not exceed 20% of the Fund’s NAV.

b. The single issuer limit in (a) may be increased to 30% if the debentures are rated by any domestic or

global rating agency to be of the best quality and offer highest safety for timely payment of dividend

and principal.

c. The value of the Fund’s placement in deposits with any single financial institution must not exceed

20% of the Fund’s NAV.

d. The value of the Fund’s investment in debentures and money market instruments issued by any group

of companies must not exceed 30% of the Fund’s NAV.

e. Where applicable, the core requirements for non-specialised funds shall apply for any other type of

investments.

•••• Investment Concentration Limits

a. The Fund’s investment in debentures must not exceed 20% of the securities issued by any single

issuer.

b. The Fund’s investment in money market instruments must not exceed 20% of the instruments issued

by any single issuer.

c. The Fund’s investment in collective scheme must not exceed 25% of the units/shares in any CIS.


66


Allowance in Excess of Investment Limits

The above investment restrictions and limits have at all times to be complied with based on the most up-to-

date valuation of the investments and instruments of the Fund. However, a 5% allowance in excess of any

restriction or limit may be permitted where the restriction or limit is breached through an appreciation or

depreciation of the NAV of the Fund (whether as a result of an appreciation or depreciation in value of the

investments or as a result of repurchase of Units or payment made from the Fund).

If the relevant limit is breached, due to the appreciation or depreciation of the NAV of the Funds, no further

acquisition of the particular securities involved shall be made. We shall, within a reasonable period of not more

than 3 months from the date of breach, take all necessary steps and actions to rectify the breach.

5.10 VALUATION OF INVESTMENTS

In respect of the investments of the Funds, it is our policy for the valuation point for the assets of the Fund to

be valued on a daily basis at the end of business day, in accordance with their respective class and at all times

in compliance with the Guidelines.

• Listed Securities

The valuation of securities listed on an Eligible Market will be based on the market price.

However, if–

i) a valuation based on the market price does not represent the fair value of the securities, for example

during abnormal market conditions; or

ii) no market price is available, including in the event of a suspension in the quotation of the securities

for a period exceeding 14 days, or such shorter period as agreed by the trustee,

then the securities should be valued at fair value, as determined in good faith by the Manager, based on the

methods or bases approved by the Trustee after appropriate technical consultation.

• Unlisted Securities

The valuation of unlisted securities will be based on fair value as determined in good faith by the Manager,

based on the methods or bases approved by the Trustee after appropriate technical consultation.

• Unlisted Sukuk Denominated in Ringgit Malaysia

Fund investing in unlisted sukuk denominated in Ringgit Malaysia will be based on price quoted by a Bond

Pricing Agency (BPA) registered with the SC. Where the Manager is of the view that the price quoted by BPA

for a specific sukuk differs from the market price by more than 20 basis points, the Manager may use the

“market price”, provided that the Manager-

i) records its basis for using a nonBPA price;

ii) obtains necessary internal approvals to use the non-BPA price; and

iii) keeps an audit trail of all decisions and basis for adopting the “market yield”.

• Other Unlisted Sukuk

The valuation on other unlisted sukuk will be based on fair value by reference to the average indicative yield

quoted by three independent and reputable institutions.

• Unlisted Collective Investment Scheme

The value of the Units will be based on the last published repurchase price.

• Islamic Money Market Instruments

The valuation for money market instrument are valued at market yields based on the remaining days to

maturity.


67


• Islamic Deposit Placements

Deposits placed with banks and other financial institutions are valued each day by reference to the nominal

value and the profit accrued thereon for the relevant period.

• Foreign Securities and Assets

The valuation for foreign securities and asset of the Fund that denominated in foreign currency (if any) are

translated on a daily basis to Ringgit Malaysia using the bid foreign exchange rate quoted by either Reuters or

Bloomberg at 4:00 p.m. (United Kingdom time) which is equivalent to 11 p.m or 12 a.m (Malaysian time) on

the same day, or at such time as stipulated in the investment management standards issued by the FIMM.

• Any Other Investment

The valuation on any other investment will be based on fair value as determined in good faith by the Manager,

on methods or bases which have been verified by the auditor of the Fund and approved by the Trustee.

5.11 POLICY ON GEARING

The Funds are prohibited from borrowing other assets (including borrowing securities within the meaning of

Guidelines on Securities Borrowing and Lending) in connection with their activities.

However, the Funds may source for Shariah-compliant financing for the purpose of meeting repurchase

requests for units subject to the following –

(a) The financing is only on a temporary basis and not persistent;

(b) The financing period should not exceed one month;

(c) The aggregate financing of each Fund should not exceed 10% of the Fund’s NAV at the time the financing

is incurred; and

(d) The Fund may only take financing from Islamic financial institutions.


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6. FUND PERFORMANCE

BASIS OF FUND PERFORMANCE COMPUTATION

The calculation for Total Return, Average Total Return and Annual Total Return of the Funds is based on

computation methods of Lipper and sourced from Lipper for Investment Management (Lipper IM). The basis

of computation is on NAV - to - NAV or Bid - to - Bid, income re-invested, over a specified period. Lipper IM is

an application that provides comprehensive fund information and performance, fund ratings, analytic tools

and charting. Information about Lipper IM can be obtained from www.lipperweb.com.

6.1 EQUITY FUNDS


Average Total Return

Fund / Benchmark For The Period Ended 31 May 2015#

1 Year 3 Years 5 Years 10 Years

PMB Al-Aiman 0.09% 4.89% 6.63% 5.77%

FBMSHA (4.26%) 5.48% 8.04% 8.23%

Source: Lipper

Total Return

Fund/Benchmark For The Period Ended 31 May 2015#


PMB Al-Aiman 0.09% 15.41% 37.90% 75.32%

FBMSHA (4.26%) 17.35% 47.24% 120.62%

Source: Lipper

1-Year Fund Performance Review

For the 1-year period ended 31 May 2015, PMB Al-Aiman registered a total return of 0.09% compared to a

return of -4.26% for the benchmark.

Past performance of the Fund is not an indication of its future performance.


69



For the 3-year period ended 31 May 2015, PMB Al-Aiman registered a total return of 15.41% compared to a

return of 17.35% on its benchmark.


For the 5-year period ended 31 May 2015, total returns of PMB Al-Aiman amounted to 37.90% against the

return of 47.24% on the FBMSHA.


70


Annual Total Return for the Past 10 Financial Years Ended 31 May#

Year PMB Al-Aiman BENCHMARK

2015 0.09% (4.26%)

2014 4.12% 6.58%

2013 11.12% 16.00%

2012 3.38% 3.38%

2011 13.46% 17.69%

2010 11.84% 26.19%

2009 (13.74%) (24.92%)

2008 6.72% 1.57%

2007 19.83% 37.47%

2006 (0.01%) 8.34%

The PTR is marginally higher at 1.07 times as compared with the previous financial year as a result of higher

trading activities undertaken by the Fund.

Asset Allocation

Year 2015 2014 2013

Equities 77.20% 75.12% 72.29%

Collective Investment Scheme 7.30% 6.64% 5.85%

Derivatives 0.01% - -

Commercial Note 1.85% - -

Deposit Placement & Others 13.64% 18.24% 21.86%

The Fund’s exposure in equities was higher in 2015 due to the buying activities on selective Shariah-compliant

stocks based on their potential to meet the Fund’s objective in the medium to long term.

# Note: Effective from 28 April 2014, the financial year of PMB Al-Aiman ends on 31 May. Prior to that, the

period ended on 15 May.

Distribution Highlight

Financial Year End # 31 May 15 May

2015 2014 2013

Gross Distribution Per Unit - Cash (sen) 3.00 3.01 3.05

Net Distribution Per Unit - Cash (sen) *3.00 *3.00 *3.05

*Distribution is in the form of ‘units’

Portfolio Turnover Ratio

2015 2014 2013

1.07 times 0.67 times 0.41 times


71




Fund/Benchmark For The Period Ended 30 June 2015#


PMB Mutiara (6.83%) 2.10% 3.94% 2.46%

FBMSHA (8.80%) 3.53% 6.85% 7.67%

Source: Lipper

Total Return

Fund/Benchmark For The Period Ended 30 June 2015#


PMB Mutiara (6.83%) 6.43% 21.35% 27.52%

FBMSHA (8.80%) 10.96% 39.30% 109.51%

Source: Lipper


For the 1-year period ended 30 June 2015, PMB Dana Mutiara posted a return of -6.83% compared to a return

of -8.80% on its benchmark.


72



For the three-year period ended 30 June 2015, PMB Mutiara registered a total return of 6.43% compared to a



For the 5-year period ended 30 June 2015, PMB Mutiara registered a total return of 21.35% compared to a


Note:

Change of benchmark:

i) 1 November 2007 – FBMSHA (replacement of the KLSI by Bursa Malaysia with the FBMSHA)

ii) 5 August 2004 – KLSI (change of Fund’s investment objective that invest in Shariah-compliant securities)

iii) Prior to 5 August 2004 – KLCI


73


Annual Total Return For the Past 10 Financial Years Ended 30 June#

Year PMB Mutiara BENCHMARK

2015 (6.83%) (8.80%)

2014 5.63% 9.10%

2013 9.81% 13.57%

2012 (3.74%) 0.57%

2011 18.05% 22.60%

2010 7.72% 15.93%

2009 (19.67%) (14.21%)

2008 (9.97%) (3.20%)

2007 35.57% 45.93%

2006 (7.66%) (1.00%)


Financial Year End # 30 June 15 June

2015 2014 2013

Gross Distribution Per Unit - Cash (sen) 1.80 2.60 -

Net Distribution Per Unit - Cash (sen) *1.70 *2.60 -

*Distribution is in the form of ‘units’.


2015 2014 2013


The higher PTR over the financial year of 2015 was a result of higher trading activities undertaken by the

Fund.

Asset Allocation

Year 2015 2014 2013

Equities 74.66% 73.20% 74.54%

Islamic Real Estate Investment Trust (REIT) 3.74% - -


Derivatives - 0.05% -




# Note: Effective from 28 April 2014, the financial year of PMB Mutiara ends on 30 June. Prior to that, the

period ended on 15 June.


74




Fund/Benchmark For The Period Ended 30 September 2015#


PMB Bestari (2.14%) 2.24% 2.98% 2.94%

FBMSHA (9.83%) 1.58% 4.65% 7.09%

Source: Lipper

Total Return

Fund/Benchmark For The Period Ended 30 September 2015#


PMB Bestari (2.14%) 6.88% 15.81% 33.69%

FBMSHA (9.83%) 4.83% 25.53% 98.40%

Source: Lipper

1-Year Fund performance Review

For the 1-year period ended 30 September 2015, PMB Bestari posted a return of -2.14% compared to a return

of -9.83% on its benchmark.


75


3-Year Fund performance Review

For the 3-year period ended 30 September 2015, PMB Bestari posted a return of 6.88% compared to a return

of 4.83% on its benchmark.


For the 5-year period ended 30 September 2015, PMB Bestari registered a return of 15.81% compared to a


Note:


i) 1 November 2007 – FBMSHA (replacement of the KLSI by Bursa Malaysia with the FBMSHA)

ii) 3 October 2002 – KLSI (change of Fund’s investment objective that invest in Shariah-compliant securities)

iii) Prior to 3 October 2002 – KLCI.


76


Annual Total Return For the Past 10 Financial Years Ended 30 September#

Year PMB Bestari Benchmark

2015 (2.14%) (9.83%)

2014 3.91% 6.64%

2013 5.51% 9.09%

2012 6.50% 15.47%

2011 3.89% 11.55%

2010 5.51% 8.99%

2009 (2.49%) 10.36%

2008 (0.89%) (7.30%)

2007 18.19% 35.02%

2006 (3.27%) 2.71%


Financial Year End # 30 Sept 15 Aug

2015 2014 2013



* Distribution is in the form of ‘units’.


2015 2014 2013


The PTR was lower than the previous year as a result of an decrease in trading activities undertaken by the

Fund during the financial year.

Asset Allocation

Year 2015 2014 2013

Equities 63.21% 72.77% 73.25%

Investment Collective Scheme 7.14% 6.26% 5.71%


The Fund’s exposure in equities was marginally reduced to 63.21% in 2015.

#Note: Effective from 28 April 2014, the financial year of PMB Bestari ends on 30 September. Prior to that,

the period ended on 15 August.


77




Fund/Benchmark

For The Period Ended 31 July 2015#

1 Year 3 Years 5 Years Since Relaunched

21/11/05

PMB SAF 8.27% 18.81% 14.67% 5.99%

FBMSHA (7.55%) 3.14% 6.31% 8.16%

Source: Lipper

Total Return

Fund/Benchmark

For The Period Ended 31 July 2015#


21/11/05

PMB SAF 8.27% 67.70% 98.35% 75.79%

FBMSHA (7.55%) 9.71% 35.84% 113.86%

Source: Lipper

1- Year Fund Performance Review

For the 1-year period ended 31 July 2015, PMB SAF outperformed its benchmark with its total return

amounting to 8.27% against the return of -7.55% on the FBMSHA.


78



For the 3-year period ended 31 July 2015, PMB SAF posted a return of 67.70% outperforming its benchmark

return of 9.71%.


For the 5-year period ended 31 July 2015, PMB SAF registered a return of 98.35% higher than the benchmark

of 35.84%.

Note:


i) 15 January 2013 – FBMSHA (change of Fund’s investment objective that invest in Shariah-compliant

securities)

ii) 6 July 2009 – FBM Top 100 Index (adoption by Bursa Malaysia of FTSE Bursa Malaysia Index Series)

iii) Prior to 6 July 2009 – KLCI


79


Annual Total Return For the Financial Years Ended 31 July#

Year PMB SAF Benchmark

2015 8.27% (7.55%)

2014 25.08% 8.16%

2013 26.96% 11.21%

2012 11.93% 6.74%

2011 6.06% 19.85%

2010 4.93% 16.25%

2009 (38.15%) (22.16%)

2008 (20.14%) (14.71%)

2007 31.72% 46.27%

Since Relaunched

(21/11/05-15/7/06) (3.86%) 6.77%


Financial Year End

# 31 July 15 July

2015 2014 2013





2015 2014 2013


The PTR was lower than the previous year as a result of a decrease in trading activities undertaken by the


Asset Allocation

Year 2015 2014 2013

Equities 83.73% 72.40% 79.14%

Derivatives 0.35% 0.17% -




# Note: Effective from 28 April 2014, the financial year of PMB SAF ends on 31 July. Prior to that, the period

ended on 15 July.


80




Fund/Benchmark For The Period Ended 28 February 2015#

1 Year 3 years 5 Years 10 years

PMB SGF 4.94% 13.52% 12.15% 7.23%

FBMSHA 1.74% 6.66% 8.71% 7.86%

Source: Lipper

Total Return

Fund/Benchmark For The Period Ended 28 February 2015#

1 Year 3 Years 5 Years 10 years

PMB SGF 4.05% 46.29% 77.49% 100.98%

FBMSHA 2.63% 21.33% 51.85% 113.15%

Source: Lipper


For the 1-year period ended 28 February 2015, PMB SGF outperformed its benchmark when its total return

amounted to 4.05% against the return of 2.63% on the FBMSHA.


81



For the 3-year period ended 28 February 2015, PMB SGF posted a return of 46.29%, outperforming the

benchmark return of 21.33%.


For the 5-year period ended 28 February 2015, PMB SGF registered a return of 77.49% compared to a return


Note:



securities)




82


Annual Total Return For the Past 10 Financial Year Ended 28 February#

Year PMB SGF Benchmark

2015 4.05% 2.63%

2014 32.41% 15.61%

2013 6.96% 2.25%

2012 6.23% 4.89%

2011 16.09% 23.34%

2010 26.84% 40.65%

2009 (33.78%) (43.95%)

2008 4.50% 14.41%

2007 25.01% 31.57%

2006 (7.41%) (1.30%)


Financial Year End 28 Feb 15 Feb

2015 2014# 2013

Gross Distribution Per Unit - Cash (sen) 5.01 10.52 -

Net Distribution Per Unit - Cash (sen) *5.00 *10.40 -



2015 2014 2013


The PTR was higher than the previous year as a result of an increase in trading activities undertaken by the


Asset Allocation

Year 2015 2014 2013

Equities 93.09% 96.28% 90.84%

Derivatives 0.63% 0.43% -


The Fund’s exposure in equities was lower in 2015 due to buying activity on selective Shariah-compliant


# Note: Effective 28 April 2014, the financial year of PMB SGF ends on 28 February.


83




Fund/Benchmark For The Period Ended 30 April 2015


PMB SMCF 3.30% 4.50% 4.06% 5.23%

FBMSHA (1.06%) 6.84% 7.62% 8.29%

Source: Lipper

Total Return

Fund/Benchmark For The Period Ended 30 April 2015


PMB SMCF 3.30% 14.13% 22.02% 66.58%

FBMSHA (1.06%) 21.94% 44.36% 121.95%

Source: Lipper


For the 1-year period ended 30 April 2015, PMB SMCF posted a return of 3.30% against a return of -1.06%

on the FBMSHA.


84



For the 3-year period ended 30 April 2015, PMB SMCF posted a return of 14.13% compared to an appreciation



For the 5-year period ended 30 April 2015, PMB SMCF registered a return of 22.02% compared to a return of

44.36% on its benchmark.

Note:


i) 7 March 2014 – FBMSHA (change of Fund’s investment objective that invest in Shariah-compliant

securities, particularly in medium sized companies)




85


Annual Total Return For the Past 10 Financial Year Ended 30 April

Year PMB SMCF Benchmark

2015 3.30% (1.06%)

2014 7.64% 13.30%

2013 2.64% 9.02%

2012 (2.15%) 2.87%

2011 5.52% 12.67%

2010 21.46% 38.31%

2009 (16.13%) (24.34%)

2008 5.40% (1.11%)

2007 20.40% 33.10%

2006 3.03% 8.24%


Financial Year End 30 April

2015 2014 2013





2015 2014 2013


The higher PTR over the financial year of 2015 was a result of higher trading activities undertaken by the

Fund due to restructuring of the Fund prior to its re-launch as a Shariah-compliant fund that invest primarily

in mid-cap stocks.

Asset Allocation

Year 2015 2014 2013

Equities 71.18% 74.89% 58.21%




The Fund’s equities decrease to 71.18% in 2015 compare to previous year.


86




Fund/Benchmark For The Period Ended 31 March 2015#


PMB SIF 0.80% 6.77% 8.17% 7.52%

FBMSHA (0.18%) 6.65% 8.01% 8.33%

Source: Lipper

Total Return

Fund/Benchmark For The Period Ended 31 March 2015#


PMB SIF 3.37% 21.71% 48.15% 106.53%

FBMSHA 2.40% 21.32% 47.01% 122.64%

Source: Lipper


For the 1-year period ended 31 March 2015, PMB SIF posted a return of 3.37% compared to a return of 2.40%

on its benchmark.


87



For the 3-year period ended 31 March 2015, PMB SIF posted a return of 21.71% compared to a return of



For the 5-year period ended 31 March 2015, PMB SIF registered a return of 48.15% compared to a return of


Note:



securities)




88


Annual Total Return For the Past 10 Financial Years Ended 31 March#

Year PMB SIF Benchmark

2015 3.37% 2.40%

2014 13.72% 14.99%

2013 4.38% 3.33%

2012 6.75% 6.42%

2011 14.32% 14.19%

2010 29.83% 54.56%

2009 (19.37%) (32.23%)

2008 4.19% 2.87%

2007 18.15% 24.57%

2006 0.65% 3.11%

Distribution Hightlight

Financial Year End 31 March 15 March

2015 2014# 2013


Net Distribution Per Unit - Cash (sen) *1.20 3.00 *1.70



2015 2014 2013


The higher PTR over the financial year of 2015 was as a result of higher trading activities undertaken by the

Fund.

Asset Allocation

Year 2015 2014 2013

Equities 94.82% 94.54% 82.99%

Islamic Real Estate Investment Trust (REIT) 0.74% 0.60% -

Collective Investment Scheme - - 4.53%


The Fund’s exposure in equities was a bit higher in 2015 as the minimum equity exposure of the Fund was

raised to 90% to in line with its objective to mirror the performance of the benchmark index.

#Note: Effective 28 April 2014, the financial year of PMB SIF ends on 31 March.


89




Fund/Benchmark For The Period Ended 31 August 2015#


PMB SPF 1.87% 3.20% 6.49% 5.19%

FBMSHA (13.44%) 0.19% 4.34% 6.75%

Source: Lipper

Total Return

Fund/Benchmark For The Period Ended 31 August 2015#


PMB SPF 1.87% 9.90% 36.94% 65.93%

FBMSHA (13.44%) 0.58% 23.71% 92.21%

Source: Lipper


For the 1-year period ended 31 August 2015, PMB SPF posted a return total at 1.87% against the benchmark

return of -13.44% on the FBMSHA.


90



For the 3-year period ended 31 August 2015, PMB SPF posted a return of 9.90% compared to a return of 0.58%

on its benchmark.


For the 5-year period ended 31 August 2015, PMB SPF registered a return of 36.94% compared to a return of


Note:



securities)




91


Annual Total Return For the Past 10 Financial Years Ended 31 August#

Year PMB SPF Benchmark

2015 1.87% (13.44%)

2014 2.69% 9.74%

2013 8.94% 9.09%

2012 13.50% 10.30%

2011 9.73% 12.67%

2010 8.64% 14.58%

2009 3.61% 11.11%

2008 (8.34%) (8.48%)

2007 21.33% 30.39%

2006 (3.13%) 2.56%


Financial Year End # 31 August 15 August

2015 2014 2013





2015 2014 2013




Asset Allocation

# 31 August 15 August

Year 2015 2014 2013

Equities 88.02% 98.13% 76.26%




The Fund’s equities decrease to 88.02% in 2015 compare to previous year.

#Note: Effective from 28 April 2014, the financial year of PMB SPF ends on 31 August. Prior to that, the period

ended on 15 August.


92




Fund/Benchmark

For The Period Ended 31 March 2015

1 Year 3 Years 5 Years Since Inception

11/8/2008

PMB SDF 9.12% 5.94% 6.91% 6.21%

FBMSHA (0.18%) 6.65% 8.01% 8.17%

Source: Lipper

Total Return

Fund/Benchmark

For The Period Ended 31 March 2015

1 Year 3 Years 5 Years Since Inception

11/8/2008

PMB SDF 9.12% 18.89% 39.69% 49.21%

FBMSHA (0.18%) 21.32% 47.01% 68.43%

Source: Lipper


For the 1-year period ended 31 March 2015, PMB SDF posted a return of 9.12% against the return of -0.18%

on its benchmark.


93



For the 3-year period ended 31 March 2015, PMB SDF posted a return of 18.89% compared to an appreciation



For the 5-year ended 31 March 2015, PMB SDF registered a return of 39.69% compared to the return of



94


Annual Total Return For the Financial Year Ended 31 March

Year PMB SDF Benchmark

2015 9.12% (0.18%)

2014 7.88% 15.75%

2013 0.99% 5.00%

2012 0.08% 4.27%

2011 17.41% 18.48%

2010 12.51% 46.64%

Since Inception

(21/7/08-31/3/09) 9.52% (34.14%)


Financial Year End 31 March

2015 2014 2013





2015 2014 2013


The PTR was higher than the previous year as a result of an increase trading activities undertaken by the Fund

during the financial year.

Asset Allocation

Year 2015 2014 2013

Equities 87.05% 75.86% 61.50%


Collective Investment Scheme - 5.53% 4.79%



The Fund’s exposure in equities was raised in 2015 due to buying activity on selective Shariah-compliant



95




Fund/Benchmark For The Period Ended 30 August 2015


PMB STEF (7.69%) 1.84% 3.98% 2.79%

FBMSHA (13.44%) 0.19% 4.34% 6.75%

Source: Lipper

Total Return

Fund/Benchmark For The Period Ended 30 August 2015


PMB STEF (7.69%) 5.62% 21.55% 31.66%

FBMSHA (13.44%) 0.58% 23.71% 92.21%

Source: Lipper


For the 1-year period ended 30 August 2015, PMB STEF posted a return of -7.69% against the return of

-13.44% on the FBMSHA.


96



For the 3-year period ended 30 August 2015, PMB STEF posted a return of 5.62% against the return of 0.58%

on the FBMSHA.


For the 5-year period ended 30 August 2015, PMB STEF registered a return of 21.55% compared to the return

of 23.71% on the FBMSHA.

Note:


i) 7 March 2014 – FBMSHA (change of Fund’s investment objective that invest in Shariah-compliant

securities)




97


Annual Total Return For the Past 10 Financial Years Ended 30 August

Year PMB STEF Benchmark

2015 (7.69%) (13.44%)

2014 7.16% 9.74%

2013 6.67% 6.10%

2012 9.97% 13.68%

2011 4.65% 4.80%

2010 7.47% 20.84%

2009 (0.45%) 9.08%

2008 (14.27%) (13.33%)

2007 20.91% 30.05%

2006 (1.81%) 5.40%


Financial Year End 30 August

2015 2014 2013


Net Distribution Per Unit - Cash (sen) *1.25 3.00 *1.35

* Distribution is in the form of ‘units’


2015 2014 2013




Asset Allocation

Year 2015 2014 2013

Equities 63.00% 70.54% 70.22%




The Fund exposure in equities was lower in 2015 due to buying activities on selective Shariah-compliant



98





Fund/Benchmark For The Period Ended 31 December 2015

1 Years 3 Year 5 Years 10 years

PMB STF* 5.94% 4.35% 4.65% 4.96%

Benchmark# 7.10% 6.91% 6.88% N/A

* Source: Lipper

# Source: Bank Negara Malaysia

Total Return

Fund/Benchmark For The Period Ended 31 December 2015

1 Year 3 Years 5 years 10 Years

PMB STF 5.94% 13.62% 25.52% 62.32%

Benchmark 7.10% 21.30% 35.50% N/A

* Source: Lipper



For the 1-year period ended 31 December 2015, PMB STF posted a return of 5.94% against the return of

7.10% on the benchmark.

*2x KLIRR


99





*2x KLIRR




*2x KLIRR

Note:


i) 25 October 2013 – Two times (2x) the performance of 1-Year Adjusted Average Rate of Kuala Lumpur

Islamic Reference Rate (KLIRR) (change of Fund’s investment objective that becomes a tactical fund)




100


Annual Total Return For the Past 10 Financial Years Ended 31 December

Year PMB STF Benchmark

2015 5.94% 7.10%

2014 (2.87%) 7.10%

2013 10.42% 10.39%

2012 4.28% 6.54%

2011 15.56% 21.76%

2010 15.56% 21.76%

2009 10.82% 38.87%

2008 (35.04%) (48.39%)

2007 27.72% 29.30%

2006 6.79% 20.54%


Financial Year End 31 December

2015 2014 2013





2015 2014 2013


The PTR was lower than the previous year as a result of decrease in trading activities undertaken by the


Asset Allocation

Year 2015 2014 2013

Equities 69.15% 65.67% 92.82 %



Islamic money market instruments - 14.81% -

Derivatives - - 0.09%


The Fund’s exposure in increase to 69.15% in 2015 compare to previous year.


101


6.3 BALANCED FUND



Fund/Benchmark For The Period Ended 30 November 2015


PMB SBF* 3.06% 5.18% 3.36% 6.99%

Benchmark# (0.26%) 4.06% 4.25% N/A

* Source: Lipper


Total Return

Fund/Benchmark

For The Period Ended 30 November 2015

1 Year 3 Years 5 Years 10 ye

ars

PMB SBF* 3.06% 16.37% 17.97% 24.44%

Benchmark# (0.26%) 12.40% 22.50% N/A

* Source: Lipper



For the 1-year period ended 30 November 2015, PMB SBF posted a return of 3.06% against the return of

-0.26% on the benchmark.

* Combination of 50% FBMSHA and 50% of 12-month KLIRR


102



For the 3-year period ended 30 November 2015, PMB SBF posted a return of 16.37% compared to the

appreciation of 12.40% on its benchmark.



For the year 5-year period ended 30 November 2015, PMB SBF registered a return of 17.97% compared to

the return of 22.50% on its benchmark.


Note:


i) 15 January 2013 – 50% FBMSHA + 50% 1 year KLIRR (change of Fund’s investment objective that invest

in Shariah-compliant securities)

ii) 6 July 2009 – 60% FBM Top 100 Index + 40% Maybank’s 12 month Fixed Deposit Rate (adoption by Bursa

Malaysia of FTSE Bursa Malaysia Index Series)

iii) Prior to 6 July 2009 – 60% KLCI + 40% Maybank’s 12 month Fixed Deposit Rate


103


Annual Total Return For the Past 10 Financial Years Ended 30 November

Year PMB Balanced Benchmark

2015 3.06% (0.26%)

2014 2.35% 2.96%

2013 10.33% 9.80%

2012 4.28% 6.54%

2011 (2.74%) 1.41%

2010 (3.77%) 12.80%

2009 19.89% 25.46%

2008 (24.21%) (25.95%)

2007 5.58% 17.56%

2006 7.09% 13.42%


Financial Year End

30 November

2015 2014 2013



*Distribution is in the form of ‘units’


2015 2014 2013




Asset Allocation

Year 2015 2014 2013

Equities 39.00% 51.43% 48.38%




The equity exposure was dropped at 39.00%, reflecting the conservative strategy adopted by the Fund.


104





Fund/Benchmark

For The Period Ended 30 June 2015


21/11/05

PMB SCMF 3.07% 2.92% 2.74% 2.73%

Benchmark ^ 3.20% 3.05% 2.96% 2.97%

Source: Lipper ^ BNM Overnight Islamic Interbank Rate

Total Return

Fund/Benchmark

For The Period Ended 30 June 2015


21/11/05

PMB SCMF 3.07% 9.00% 14.47% 29.56%

Benchmark^ 3.20% 9.42% 15.74% 32.50%

Source: Lipper ^ BNM Overnight Islamic Interbank Rate


For the 1-year period ended 30 June 2015, PMB SCMF posted a return of 3.07% against the return of 3.20%

on the BNM Islamic Interbank Overnight Rate.


105



For the 3-year period ended 30 June 2015, PMB SCMF posted a return of 9.00% compared to the appreciation



For the 5-year period ended 30 June 2015, PMB SCMF registered a return of 14.47% compared to the return


Note:


i) 28 April 2013 – BNM Overnight Islamic Interbank Overnight Rate quoted at the Islamic Interbank Money

Market (IIMM) of Bank Negara Malaysia (revised to reflect .3)

ii) Fund’s investment in short term money market instruments)

iii) 21 November 2005 – BNM 3-month Islamic Interbank Rate (change of Fund’s investment objective into a

Shariah money market fund)

iv) Prior to November 2005 – KLCI


106


Annual Total Return For the Financial Year Ended 30 June

Year PMB SCMF Benchmark

2015 3.07% 3.20%

2014 2.83% 2.97%

2013 2.84% 2.96%

2012 2.49% 3.18%

2011 2.43% 2.91%

2010 1.59% 2.16%

2009 2.42% 2.99%

2008 2.92% 3.46%

2007 2.91% 3.60%

Since Relaunched

21/11/05 -15/6/06 3.44% 3.23%


Financial Year End 30 June

2015 2014 2013

Gross Distribution Per Unit - Cash(sen) 1.49 1.37 1.10


* Distribution is in the form of ‘units’


2015 2014 2013




Asset Allocation

Year 2015 2014 2013

Islamic money market instruments 10.63% 15.96% 14.59%

Deposit placement and others 89.37% 84.04% 85.41%

The asset allocation for Islamic money market instruments decreased to 10.63% from the previous year. The

Fund exposure in deposit placement was increased by 5.33% in 2015.


107


7. HISTORICAL FINANCIAL HIGHLIGHTS

The Audited financial statements of the Funds are disclosed in the Funds’ annual report. The Funds’

annual report is available upon request. Past performance is not an indication of their future

performance.

7.1 EQUITY FUNDS


Financial Year Ending 31 May

EXTRACT OF AUDITED STATEMENT OF INCOME AND EXPENDITURE

Financial Year End 2015 2014 2013

Total Investment Income/(loss) (RM) 1,480,458 3,721,527 8,737,268

Total Expenses (RM) (1,271,690) (1,342,427) (1,327,724)

Net Income/(loss) before taxation (RM) 208,768 2,379,100 7,409,544

Taxation (RM) - (10,438) (3,471)

Net Income/(loss) after taxation (RM) 208,768 2,368,662 7,406,073

EXTRACT OF AUDITED STATEMENT OF ASSETS AND LIABILITIES


Total Investment (RM) 53,082,045 57,633,785 65,966,787

Other Asset (RM) 644,665 3,608,788 2,508,338

Total Assets (RM) 53,726,710 61,242,573 68,475,125

Total Liabilities (RM) (3,052,794) (4,552,013) (5,884,719)

Net Asset Value (RM) 50,673,916 56,690,560 62,590,406

Unit Holders Funds (RM) 50,673,916 56,690,560 62,590,406


108



Financial Year Ending 30 June



Total Investment Income/(loss) (RM) (290,228) 592,714 890,123

Total Expenses (RM) (172,540) (182,479) (171,087)

Net Income/(loss) before taxation (RM) (462,768) 410,235 719,036

Taxation (RM) (15,944) (601) 1,168

Net Income/(loss) after taxation (RM) (478,712) 409,634 720,204




Other Asset (RM) 253,752 293,533 546,300

Total Assets (RM) 6,372,563 7,381,779 8,032,965

Total Liabilities (RM) (289,733) (545,654) (169,409)




109



Financial Year Ending 30 September



Total Investment Income/(loss) (RM) (4,171) 692,449 929,497


Net Income/(loss) before taxation (RM) (258,937) 365,150 661,891

Taxation (RM) (7,535) - 440

Net Income/(loss) after taxation (RM) (266,472) 365,150 662,331




Other Asset (RM) 277,812 282,422 293,394

Total Assets (RM) 9,289,954 10,261,188 11,428,011





110



Financial Year Ending 31 July





Net Income/(loss) before taxation (RM) 2,455,283 1,365,575 947,491

Taxation (RM) (694) (1,477) (7,038)

Net Income/(loss) after taxation (RM) 2,454,589 1,364,098 940,453




Other Asset (RM) 2,077,806 1,064,169 265,343

Total Assets (RM) 35,394,490 11,105,365 5,251,623

Total Liabilities (RM) (3,618,489) (1,132,086) (250,343)




111



Financial Year Ending 28 February



Total Investment Income/(loss) (RM) 1,087,164 2,281,529 522,412


Net Income/(loss) before taxation (RM) 779,097 2,121,593 389,895

Taxation (RM) (607) (8,083) (5,833)

Net Income/(loss) after taxation (RM) 778,490 2,113,510 384,062




Other Asset (RM) 339,227 219,280 281,301

Total Assets (RM) 15,594,596 9,248,446 6,195,225





112



Financial Year Ending 30 April






Taxation (RM) - - (23,040)





Other Asset (RM) 1,279,553 2,683,393 910,479

Total Assets (RM) 29,420,855 29,625,800 30,133,075





113



Financial Year Ending 31 March



Total Investment Income/(loss) (RM) 676,311 2,201,004 816,743



Taxation (RM) (4,186) (5,203) (17,566)





Other Asset (RM) 226,406 269,535 200,292

Total Assets (RM) 15,476,335 15,669,321 16,144,630





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Financial Year Ending 31 August




Total Expenses (RM) (962,884) (1,132,145) (878,531)

Net Income/(loss) before taxation (RM) 724,772 98,134 3,565,397

Taxation (RM) (6,250) (4,107) 10,050

Net Income/(loss) after taxation (RM) 718,522 94,027 3,575,447




Other Asset (RM) 1,102,978 519,748 573,445

Total Assets (RM) 39,731,425 43,074,721 42,477,666





115



Financial Year Ending 31 March



Total Investment Income/(loss) (RM) 716,657 615,360 322,255


Net Income/(loss) before taxation (RM) 523,977 472,956 125,804

Taxation (RM) 4,657 (7,051) (14,676)

Net Income/(loss) after taxation (RM) 528,634 465,905 111,128




Other Asset (RM) 157,428 1,200,434 163,079

Total Assets (RM) 6,078,569 6,146,876 6,585,055





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Financial Year Ending 30 August



Total Investment Income/(loss) (RM) (1,061,984) 1,877,811 1,679,690


Net Income/(loss) before taxation (RM) (1,494,652) 1,360,986 1,303,726

Taxation (RM) - (677) (118,018)

Net Income/(loss) after taxation (RM) (1,494,652) 1,360,309 1,185,708




Other Asset (RM) 218,223 260,600 318,030

Total Assets (RM) 17,428,131 19,916,771 19,853,240

Total Liabilities (RM) (644,051) (1,468,250) (1,613,779)




117




Financial Year Ending 31 December



Total Investment Income/(loss) (RM) 1,375,011 (38,621) 2,055,717


Net Income/(loss) before taxation (RM) 935,249 (526,742) 1,675,149

Taxation (RM) (6,527) 975 (1,852)

Net Income/(loss) after taxation (RM) 928,722 (525,767) 1,673,297




Other Asset (RM) 1,602,746 3,102,298 692,175

Total Assets (RM) 16,542,649 16,253,770 19,766,873

Total Liabilities (RM) (397,270) (965,577) (1,579,827)




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7.3 BALANCED FUND


Financial Year Ending 30 November






Taxation (RM) - - -





Other Asset (RM) 145,770 38,107 84,190

Total Assets (RM) 1,520,624 1,264,561 1,333,616





119




Financial Year Ending 30 June






Taxation (RM) (21,205) - 10,773





Other Asset (RM) 216,579 710,103 142,338

Total Assets (RM) 27,890,862 25,074,761 21,257,382





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7.5 TOTAL ANNUAL EXPENSES

The table below shows the total annual expenses incurred by the Funds in their respective preceding financial

year-ends.

The percentage was calculated based on the Average NAV.

Fund

Management

Fee

Trustee

Fee

Fund

Expenses

Total Annual

Expenses

(RM ’000) (%) (RM ’000) (%) (RM ’000) (%) (RM ’000) (%)

PMB AL-AIMAN 808 1.50 54 0.10 52 0.10 914 1.70

PMB MUTIARA 101 1.51 7 0.10 16 0.24 124 1.85

PMB BESTARI 145 1.50 10 0.10 26 0.27 181 1.87

PMB SAF 326 1.49 22 0.10 28 0.13 376 1.72

PMB SGF 165 1.56 11 0.10 9 0.09 185 1.75

PMB SMCF 433 1.50 29 0.10 52 0.18 514 1.78

PMB SIF 95 0.63 16 0.11 20 0.13 131 0.87

PMB SPF 631 1.50 42 0.10 65 0.15 738 1.75

PMB SDF 89 1.50 18 0.30 9 0.15 116 1.95

PMB STF 243 1.50 16 0.10 54 0.33 313 1.93

PMB STEF 279 1.50 19 0.10 43 0.23 341 1.83

PMB SBF 14 1.03 1 0.07 7 0.53 22 1.63

PMB SCMF 65 0.26 13 0.05 25 0.10 103 0.41


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7.6 MANAGEMENT EXPENSES RATIO (MER)

The MERs of the Funds for the respective latest financial year are as follows:

Fund/Financial Year End

2015

(%)

2014

(%)

2013

(%)

PMB AL-AIMAN 1.70 1.74 1.69

PMB MUTIARA 1.85 1.87 1.80

PMB BESTARI 1.87 1.99 1.78

PMB SAF 1.72 1.83 1.87

PMB SGF 1.75 1.72 1.72

PMB SMCF 1.78 1.77 1.80

PMB SIF 0.87 0.82 1.54

PMB SPF 1.75 1.77 1.72

PMB SDF 1.95 1.93 2.11

PMB SBF 1.63 1.61 1.69

PMB STF 1.93 1.83 1.82

PMB STEF 1.83 1.76 1.76

PMB SCMF 0.41 0.32 0.26


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8. FEES, CHARGES AND EXPENSES

There are fees and charges involved and investors are advised to consider them before investing

in the Fund.

8.1 CHARGES

Charges payable by the investors directly when investing in the Fund, are as below –

Charges Distribution Channel(s) % of the NAV Fund

Sales charge per

unit

IUTA, UTC & direct purchase 6.0 % Applicable to all Funds

except PMB SCMF

EPF Members’ Investment Scheme 3.0% Applicable to all Funds

except PMB SCMF

Repurchase

charge per unit

IUTA, UTC, direct purchase and EPF

Members’ Scheme

Nil PMB SCMF

IUTA, UTC, direct repurchase & EPF

Members’ Investment Scheme

Nil Applicable to all Funds

In calculating the charges imposed, any adjustments for rounding up would only be conducted once at the

charges level and only up to 4 decimal places.

*Notes:

i) The Manager may, at its discretion, charge a lower sales charge based on criteria as may be determined

from time to time.

ii) All the above charges are subject to the goods and services tax (GST) currently at the rate of 6.0% (You

may refer to Section 15.9 on the GST).

• Sales Charge

Below is an illustration on how the sales charge is calculated:-

Investment amount in PMB SIF : RM10,000

NAV per Unit : RM0.5000

Sales charge : 6.0% of NAV per unit

Units issued to Unit Holder = Investment amount

NAV per unit

= RM10,000

RM0.5000

= 20,000 units

Sales charge per Unit = NAV per unit x Sales charge (%)

= RM0.5000 x 6.0%

= RM0.0300

Total sales charge* = 20,000 units x RM0.0300

= RM600.00

Please note that the above example is for illustration purposes only.

*Note: In addition, the above charge is subject to the goods and services tax (GST) currently at the rate of

6.0%.


123


• Repurchase Charge

We do not impose any repurchase charge when you redeem your units.

• Transfer fee

Up to RM10 per transaction (excluding stamp duty).

Note: In addition, the above fee is subject to the goods and services tax (GST) currently at the rate of 6.0%.

• Switching fee

This facility enables Unit Holders to switch units of one Fund to units of other Funds managed by the Manager

which is available for sale. Units switched are transacted at the Fund’s NAV per unit. The minimum investment

that can be switched in each transaction is RM1,000. The conditions for switching are set out below:-

Switching

fee*

The fee for switching are set out below:

To

From

Equity

funds

Mixed Asset/

Balanced funds

Money Market

fund

Equity funds Up to RM25 per

transaction

Up to RM25 per

transaction Nil

Mixed Asset /

Balanced fund

Up to RM25 per

transaction

Up to RM25 per

transaction Nil

Money Market

fund

Up to 6% of the amount switched

Not applicable

*Note: In addition, the above fee is subject to the goods and services tax (GST) currently at the rate of 6.0%.

8.2 FEES

When investing in the Funds, you may also incur indirect fees which are charged to the Fund as follows:-

• Annual Management Fee

The annual management fee is calculated daily at 1.5% per annum of the NAV of a Fund, except for PMB SBF at

the rate of 1.0% per annum, PMB SIF at the rate of 0.6% per annum and PMB SCMF at the rate of 0.4% per

annum, before accruing the management fee and the trustee fee on the valuation point.

The computation of the annual management fee for a particular date is based on the following method:-

(NAV before accruing the management fee and the trustee fee

on the valuation point) X (the rate of management fee)

Number of days in a year

Assuming the NAV before accruing the management fee and trustee fee on a particular date is RM280,000.00

and the rate of management fee for the relevant fund is 1.5% per annum, the amount of the management fee

charged for that particular date would be:-

Management Fee* = RM280,000 X 1.5% /365 days

= RM11.51



124


• Annual Trustee Fee

The annual trustee fee is calculated daily at 0.1% per annum of the NAV of a Fund, except for PMB SDF at the

rate of 0.1% per annum subject to a minimum fee of RM18,000 per annum and PMB SCMF at the rate of 0.05%

per annum based on NAV, before accruing the annual management fee and the trustee fee accrued on the

valuation point. The computation of the annual trustee fee for a particular date is based on the following

method:-

(NAV before accruing the management fee and the trustee

fee on the valuation point) X (the rate of trustee fee)

Number of days in a year

Assuming the NAV before accruing the management fee and trustee fee on a particular date is RM280,000.00

and the rate of trustee fee for the relevant fund is 0.1% per annum, the amount of the trustee fee charged for

that particular date would be:-

Trustee Fee* = RM280,000 X 0.1% / 365 days

= RM0.77


8.3 EXPENSES

The Funds may incur the following operational and administrative expenses: -

- Commissions/fees paid to brokers/dealers in effecting dealings in the investments of the Fund shown

on the contract notes or confirmation notes;

- Charges/fees paid to sub-custodian (for foreign investments only);

- Tax and other duties charged on the Fund by the Government and other authorities;

- The fees and other expenses properly incurred by the auditor appointed for the Fund;

- Fees for the valuation of any investments of the Fund by independent valuers for the benefit of the

Fund;

- Cost of printing the Annual/Interim reports;

- Costs incurred for the modification of the Deeds of the Fund other than those for the benefit of the

management company and/or Trustee;

- Cost incurred for any meeting of the Unit Holders other than those convened for the benefit of the

management company and/or Trustee; and

- Any other fees/expenses permitted by the Deed.

Expenses related to the issuance of this Master Prospectus will be borne by the Manager.

*Note: In addition, the above expenses are subject to the goods and services tax (GST) currently at the rate of

6.0%.

8.4 REBATE AND COMMISSION

The Manager and the Trustee are not entitled to any rebates or to share any commission from broker in

consideration for direct dealings in the investments of the Funds. Accordingly, any rebates and shared

commissions will be directed to the account of the Funds.

However, we may receive goods or services by way of soft commissions provided always that the goods or

services are of demonstrable benefit to the Funds and that the execution of a transaction is consistent with the

best execution standards.


125


9. TRANSACTION INFORMATION

HOW CAN YOU KEEP TRACK OF YOUR INVESTMENT

The annual and interim reports with information on the performance and investments of the Funds are issued

to unit holders of the Funds within two (2) months from the closing of their respective interim and financial

year periods.

You may obtain our latest information, our products and services, and market outlook at our website

pmbinvestment.com.my. Our officers will provide you with more specific information on your investments

should you require such a service.

You may communicate with us via :

• Investor Relation Careline: (03) 2785 9900

• Email: [email protected]

• Website: Complete the feedback form at pmbinvestment.com.my

You may also walk-in to the Head Office or any of our regional offices during normal business hours as stated

in Section 15.4(iv) of this Master Prospectus or write to the same. Fund prices will be published daily on our

website.

9.1 TRANSACTION DETAILS

• How to Start Investing

Please read and understand the Master Prospectus (and any supplementary master prospectus) and

Product Highlight Sheet (PHS) before investing. You must attain the age of at least 18 on the date of

application. If you fulfill this requirement, all you have to do is to complete an FIMM Pre-Investment

Form, PMB Investment’s Suitability Assessment Form and Master Application Form for initial account

opening. In addition, you need to complete the Investment Request Form for buying transaction

together with a photocopy of NRIC or related document.

• How to Conduct Subsequent Transaction

For subsequent transaction, simply complete the Investment Request Form (to make additional

investment). If your completed Suitability Assessment Form is done more than three (3) years prior

to this transaction, you need to do a new assessment.

• Application and Acceptance

Application of units should be made before the cut-off time at 3.00 p.m. with cleared payment on any

business day. The units will be issued at NAV per unit calculated at the end of the business day (i.e.

“forward pricing”) on which the application to purchase is received by the Manager. Any application

received after the cut-off time, the request will be deemed to have been received on the next business

day. We reserve the right to vary the terms and conditions of investment and payment modes from

time to time, which shall be communicated to you in writing. Note that we reserve the right to reject

any application without providing any reason, whatsoever. We may also reject any application that is

not complete and/or not accompanied by the required documents.


126


9.2 PAYMENT METHODS

• Via Cheque, Bank Draft or Money Order

Payment can be made by cheque, bank draft or money order drawn on a bank located in Malaysia in

Ringgit Malaysia (RM), crossed, made payable to “PMB Investment Berhad”. Applicants are to write

their name and NRIC or passport or corporate/institutional registration number at the back of the

cheque, draft or money order. Application shall be processed based on the net amount received. Where

payment is by cheque, the cheque must be issued by the investor.

• Via Bank Transfer Services (Telegraphic Transfer/Inter-Bank GIRO /Online Banking)

Applicants may transfer the subscription proceeds directly into the bank account of PMB Investment

Berhad via telegraphic transfer/inter-bank GIRO/online banking. Please include applicant’s name in

the transaction description where applicable for reference.

Details of our principal bank accounts are as follows:

Bank Account Number

Maybank Islamic Berhad 5-64342-00013-8

Public Islamic Bank Berhad 3810755226

CIMB Islamic Bank Berhad 8600006139

Bank Muamalat (Malaysia) Berhad 14010003688717

Bank Islam (Malaysia) Berhad 14153010008206

• Via Auto debit

You may choose to invest on a regular basis through a bank auto-debit (standing instruction) facility

at the following financial institutions:-

a) Bank Simpanan Nasional

b) CIMB Bank Berhad

c) Malayan Banking Berhad/Maybank Islamic Berhad

d) RHB Bank Berhad/RHB Islamic Bank Berhad

• Via Salary Deduction

If you are a Government servant, you can invest regularly by applying for a salary deduction

instruction through ANGKASA. If you are in the private sector, you may check with your employer on

the Employee’s Salary Deduction Scheme for a regular monthly investment.

• EPF Members’ Investment Scheme (EPF MIS)

You may also withdraw from your EPF Account 1, to be invested in a Fund approved by EPF under its

Members’ Investment Scheme. To apply for the withdrawal, you are required to also complete a

Borang KWSP 9N (AHL) for each application together with a Master Application Form for withdrawal

to invest via the EPF Members’ Investment Scheme.

Please note that investment through EPF MIS is subject to the terms and conditions set by the EPF and

investors are therefore advised to check on the details accordingly from EPF.

Investors are advised not to make payment in cash when purchasing units of a Fund via

any institutional/retail agent.


127


9.3 COOLING-OFF POLICY

A first time investor with the Manager shall have the right, within 6 business days, commencing from the day

the completed application is received and accepted by the Manager to withdraw his/her investment in the

Fund. However, this cooling-off period does not apply to corporations or institutions, staff of the Manager and

a person registered with a body approved by the SC to deal in unit trusts.

An investor who exercises his/her right to withdraw during the cooling-off period is entitled to receive a full

refund of the money initially invested i.e.:-

---- the NAV per unit on the day the units were first purchased; plus

---- the sales charge per unit originally imposed on the day the units were purchased.

The money payable out of this transaction must be refunded to the investor within 10 days of the Manager’s

receipt of the repurchase request.

9.4 REPURCHASING/REDEEMING AN INVESTMENT You may redeem all or some of the units held on any business day by completing the Transaction Form together

with a photocopy of your NRIC.

• Redemption for Funds other than PMB SCMF

---- For a request to redeem units received or deemed to have been received by us on or before 3.00

p.m. on any business day, units will be redeemed at the NAV per unit calculated at the end of

business day on which the request is received (“forward pricing”).

---- Where the repurchase request is received after the cut-off time, i.e. after 3.00 p.m., the request will

be deemed to have been received on the next business day.

---- Payment will be made within 10 days of the receipt of redemption request.

---- We reserve the right to vary the terms and conditions of repurchase/redemption mode from time

to time, which shall be communicated to you in writing.

• Redemption for PMB SCMF

---- If a repurchase applications is received on or before 9.15 a.m., repurchase monies will be paid on

the next business day (T+1). For repurchase application received after 9.15 a.m., the request is

deemed to have been received on the next business day and the repurchase monies will be paid on

the following business day.

---- The applicable repurchase price would be based on the NAV or unit at the end of the business day

on which the request to repurchase is received by the manager.

---- In the event of any technical difficulties beyond the Manager’s control or should the redemption

request in the sale of units cannot be liquidated at an appropriate price or on adequate terms and

is as such not in the interest of the existing Unit Holders, redemption monies may be paid at such

other period or as may be permitted by the relevant authorities from time to time.

• Redemption related to EPF Members’ Investment Scheme

---- Redemption proceeds will be paid to the EPF and to be credited into your EPF account.

• General

---- No restriction is set on the frequency of redemption. For certificate holders, you can only redeem

your units upon surrendering the unit certificate(s).

---- There is no minimum number of units for redemption but a Unit Holder must retain at least

RM100 upon partial redemption (for all Funds except PMB SCMF) and at least RM1,000 upon

partial redemption for PMB SCMF.


128


---- No redemption fee is charged. However, any applicable bank charges and other bank fees

incurred as a result of a withdrawal by way of telegraphic transfer, bankers cheque or other

special payment method will be borne by the Unit Holder.

---- If the units are held in the names of more than one Unit Holder, where the mode of holding is

specified as “Joint Application”, redemption request will have to be signed by all the joint holders

unless the joint applicant is a minor.

9.5 CHANNELS TO PURCHASE AND REDEEM UNITS

You may refer the address of our Head Office and list of our regional and agency offices and

institutional unit trust agents on Section 15.16.

9.6 SWITCHING BETWEEN FUNDS

• Switching is a facility which enables you to convert units of a particular Fund for the units of our other

Funds. Simply complete the Transaction Form. Unit Holders are required to enclose the certificate of

investment (if any) upon switching.

• All Unit Holders are allowed to switch from one Fund to any other Funds managed by the Manager.

The minimum amount you can switch is RM1,000 per transaction.

• Switching fee is as per condition below:

---- No switching fee will be imposed if switching is made to Fund with lower or no sales charge (e.g.

equity fund to money market fund)

---- Up to RM25 per transaction if the sales charge of the Fund to be switched into is equal to the sales

charge of the fund from which switching is made (e.g. equity fund to balanced fund)

---- At sales charge if the sales charge of fund to be switched into exceeds the sales charge of the fund

from which switching is made (e.g. money market fund to equity fund). However, if the originating

fund from which switching is made is from equity or balanced fund, the switching fee shall be up

to RM25 only.

---- In addition. you shall be liable to pay any Goods and Services Tax imposed on you by virtue of any

law, regulation, directive or order by any governmental authority in relation to the switching fee.

---- The Manager reserves the right to reject any switching request :

i) that it regards as disruptive to efficient portfolio management; or

ii) if deemed by the Manager to be contrary to the best interest of the affected Fund;

• To switch between the Funds managed by the Manager, you can simply complete the Switching Form

at the Manager’s Head Office, Regional and Agency Offices.

(Please refer to Section 8.1 for switching).

9.7 TRANSFER OF UNITS

• An investor may transfer some or all of units held to another investor by completing a Transfer Form.

Subject to the provisions of the Deed, transfer of unit can be made provided that the units registered

thereof are not less than the minimum prescribed number of units.

• In the case of a death, bankruptcy or insanity, the units shall be transferred to the remaining/surviving

joint holder provided that the age of remaining / surviving joint holder, if any, is at least 18 years old,

or to the executors or administrators of the deceased and subject to the applicability of any Shariah

principles (for Muslim investors).


129


• Both the transferor (the Unit Holder) and the transferee must complete the Transfer Form and submit

it to the Manager together with the certificate or any supporting document to prove the title of the

transferor. The Manager may refuse to register a transfer of less than RM100 or where the balance in

the transferor’s holding is less than RM100 in value at the time of transaction or any other amount as

may be determined by the Manager from time to time (for all Funds except PMB SCMF) or where the

balance in the transferor’s holding is less than RM1,000 in value at the time of transaction for PMB

SCMF or any other amount as may be determined by the Manager from time to time.

• The transfer shall be affected within 30 days from the date of receipt of the request. A fee of not

exceeding RM10.00 will be charged for a transfer of units. In addition, you shall be liable to pay any

Goods and Services Tax imposed on you by virtue of any law, regulation, directive or order by any

governmental authority in relation to the transfer fee.

9.8 A QUICK GUIDE ON HOW TO BUY, SELL, SWITCH & TRANSFER

How to Documents Required Minimum amount

Make an

Initial

Investment

Individual Investor:

• Pre-Investment Form by FIMM (for every new

fund)

• Suitability Assessment Form

• Master Application Form

• Investment Request Form

• KWSP 9N(AHL) Form (if investing via the EPF

MIS)

• A photocopy of NRIC (if the applicant is a

Malaysian) or Passport (if the applicant is a non-

Malaysian)

Corporate investor:

• Master Application Form

• Pre-Investment Form by FIMM (for every new

fund)

• Suitability Assessment Form


• A copy of each of the company’s resolution and

certificate of incorporation (certified by a

director or company secretary);

• List of authorised signatories and specimen

signatures;

• Form 11, 13, 49 and other documents, if required

Completed forms and documents required should

be submitted together with payment or proof of

payment.

For Initial investment :

• Direct purchase :

i) RM100 - applicable to all

funds except PMB SCMF

ii) RM1,000 - applicable to

PMB SCMF only.

Make

Additional

Investment

Individual Investor


• A copy of NRIC (if the applicant is a Malaysian)

or Passport (if the applicant is a non-Malaysian);

or

• KWSP 9N (AHL) Form (if investing via the EPF

MIS)

Corporate Investor:


For additional investment:

• Direct purchase & Auto debit

- RM50


130


Signed by authorized signatories and company

stamp

• Board Resolution or any other necessary

authorization

Completed forms and documents required should

be submitted together with payment or proof of

payment.

Redeem,

Switching

and Transfer

Individual Investor (single/joint applicant )

Redeem/Switching

• Transaction Form

• A copy of NRIC (if the applicant is a Malaysian)

or Passport (if the applicant is a non-Malaysian)

• Pre-Investment Form

(For switching to new Fund)

Transfer

• Transfer Form

A copy of NRIC (if the applicant is a Malaysian)

or Passport (if the applicant is a non-Malaysian)

Corporate Investor

Redeem/Switching

• Transaction form

Signed by authorized signatories and company

stamp

• Board Resolution or any other necessary

authorization

For both individual and

corporate investor

Repurchase/redemption:

• No minimum number of units;

however, upon partial

redemption/repurchase, at

least RM100 value at the point

of transaction should be

retained (for all Funds except

PMB SCMF) and at least

RM1,000 value at the point of

transaction should be retained

for PMB SCMF.

Switch & Transfer:

• For switching, at least RM1,000

per transaction.

• For transfer of units, the

minimum amount may be

determined by the Manager

from time to time

9.9 INCOME DISTRIBUTION AND REINVESTMENT POLICIES

• Income Distribution

Income of a Fund includes dividends from shares, profit from deposit placement and debt income

securities, and capital gains realized from the disposal of investments in the Fund. The Fund may

distribute all or part of its net income and or net realized capital gains to its Unit Holders at the

discretion of the Manager, subject to the Trustee’s approval. Potential investors are however advised

that the distribution is subject to the Deed and the objective of each Fund, and after taking into

consideration the total return of the Fund, income for the period, cash flow of the distribution, and

stability and sustainability of the distribution of return.

Income distribution will be paid to eligible Unit Holders via:

---- cheques; or

---- e-payment to the Unit Holder’s bank account.

In certain cases, upon presentation to the depositing banks or financial institutions, the distribution

warrants or cheques may attract bank commission or transaction charges which will be borne by the

Unit Holders.


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The income distributed may be in the form of ‘units’ instead of cash. A statement of the distribution of

units will be delivered to the Unit Holder within a reasonable time period, as permitted by the

Guidelines.

• Unit Split

The Fund may undertake a unit split exercise to reduce the price of the units and this can only be

conducted once in every 12 month-period. The unit split exercise may be conducted at the time of the

distribution of return or at any time within the financial year. Where the exercise is conducted within

the financial year, the Fund needs to show a sustainable appreciation in its NAV in the preceding 6-

month period.

• Reinvestment Policies

Reinvestment instruction of income distribution may be applied by Unit Holders by marking the

instruction in the application form. The distribution will be credited to the Unit Holder’s investment

account. The value of the reinvestment of distribution will be equivalent to the NAV per unit on the

first business day following the Distribution Date. No charge will be imposed on the distribution

reinvestment.

However, if a Unit Holder wishes to reinvest the distribution upon receipt of distribution warrants /

cash, such distribution reinvestment will be treated as normal sales of units.

• Auto Reinvestment

Auto reinvestment will be applied to the followings:

---- Distribution amount of less than RM50, which will be reinvested at the unit price equivalent to the

NAV per unit computed at the end of the next business day following the Distribution Date. No

additional charge will be imposed on the distribution reinvestment.

---- Fund’s distribution of income is by way of units, irrespective of the standing instruction given by

the Unit Holders to the contrary.

---- Unit Holders should notify the Manager of their option for reinvestment and any change of address

within fourteen (14) business days prior to each distribution date.

• Unclaimed Distribution

Distributions (if any) if not claimed within 6 months after the date of payment will be automatically

reinvested provided that the Unit Holder’s account remains active and subject to the availability of

units to be subscribed. In the event that Unit Holder’s account is already closed, the monies will be

sent to the Office of Registrar of Unclaimed Monies, Accountant General’s Department as required

under the Unclaimed Monies Act 1965 (as may be amended).

9.10 DETERMINATION OF PRICE

• Forward Pricing

The price of units of a Fund is determined based on the NAV per unit as at the next valuation point

after a request for sales or repurchase of Units is received by the Manager.

Dealing cut-off time for any units to be issued and/or redeemed is 3.00 p.m. on the business day except

for PMB SCMF. For PMB SCMF, the dealing cut-off time is 9.15 a.m. Any application received after the

cut-off time will be treated as it is received on the following business day.

• Single Pricing Regime (SPR)

According to the SPR, the creation, cancellation, selling and buying/repurchase prices for units will be

the NAV per unit on any transaction. For an example, the NAV per unit during a particular date is

RM0.23375 (before 4 decimal rounding adjustments).

NAV per unit = Buying Price per unit

= RM0.2338 (rounded to 4 decimal places)


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• Computation of NAV and NAV Per Unit

The NAV of the Fund is determined by deducting the value of the Fund’s liabilities from the value of

the Fund’s assets, at a valuation point.

Illustration :

For illustration purposes, assuming the figures of a relevant day are as below:

Value of the Fund’s Assets = RM100,000,000.00

Value of the Fund’s Liabilities = RM500,000.00

Units in Circulation = 150,000,000

Annual Management Fee = 1.5% per annum

Annual Trustee Fee = 0.1% per annum

The NAV of the Fund will be:

RM

Fund’s asset 100,000,000.00

Less: Fund’s liabilities (500,000.00)

Net asset value (before annual management fee & trustee fee) 99,500,000.00

Less: Management fee (1.5% per annum) (4,089.04)

Trustee fee (0.1% per annum) (272.60)

NAV of the Fund of the day (before GST) 99,495,638.36

Less: GST of 6% on the management fee (245.34)

GST of 6% on the trustee fee (16.36)

NAV of the Fund of the day (after GST) 99,495,376.66

The NAV per unit of the Fund will be:

NAV per unit = NAV of the Fund / Unit in Circulation

= RM 99,495,376.66/ 150,000,000

= RM 0.66330251106 (before rounding adjustment)

= RM 0.6633 (rounded to 4 decimal points)

• Amount Payable Upon Sales of Units

Units will be sold at the NAV per unit of the Funds. Any sales charge payable by the Unit Holder would

be calculated as a percentage of the NAV per unit of the Funds.

For illustration purposes, assume the following;

Price/ NAV per unit = RM0.5000

Sales charge per unit = 6.0%

Goods & Services Tax = 6.0%


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Purchase of 10,000 units Purchase with proceeds of RM10,000

Amount

invested

= Units purchased x Price per

unit

Sales charge

with GST

= Sales charge + (Sales charge x

6.0%)

= 10,000 x RM0.5000 = 6% + (6% x 6%)

= RM5,000.00 = 6.36%

Sales charge = Price per unit x Sales

charges per unit x Units

purchased

Amount

payable per

unit

= Price per unit + (Price per unit

x Sales charge with GST)

= RM0.5000 x 6.0% x 10,000

units

= RM0.5000 + (RM0.5000 x

6.36%)

= RM300.00 = RM0.5318

GST = Sales charge x 6.0% Units received = Proceeds / amount payable per

unit

= RM300.00 x 6.0% = RM10,000-00/RM0.5318

= RM18.00 = 18,804.06 units

Total payable = Amount invested + sales Amount invested = Units received x price per unit

charges + GST = 18,804.06 x RM0.5000

= RM5,000.00 + RM300.00 + = RM9,402.0305

RM18 = RM9,402.03 (to the nearest 2

= RM5,318.00 decimal points)

Sales charge = 18,804.06 x RM0.5000 X 6.0%

= RM564.1218

= RM564.12 (to the nearest 2

decimal points)

GST = RM564.12 x 6.0%

= RM33.8475

= RM33.85 (to the nearest 2

decimal points

Total payable = Amount invested + sales

charges + GST

= RM9402.03 + RM564.12 +

RM33.85

= RM10,000.00

• Amount Received Upon Repurchase of Units

As the redemption or buying price per unit of the Fund is equivalent to the NAV per unit, the total

amount received upon a repurchase of units will be equivalent to (the number of units redeemed x

the redemption price or buying price per unit) less (redemption charge x number of units redeemed.)

However, PMB Investment does not imposed any charges on redemption during the lifetime of the

Master Prospectus.

Illustration of Amount Received upon Redemption of units is shown below:-

Amount received = (units redeemed) x (redemption price or buying price per unit) –

(redemption charge x number of units redeemed)

= (10,000 units x RM0.5000) – (0 x 10,000 units)

= RM5,000


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• Incorrect Pricing

In case pricing discrepancies in the calculation of NAV occurs, the Manager will take immediate

remedial action to rectify the Unit pricing at the Fund’s level. The money will be reimbursed to the

Unit Holder if the error is more than 0.5% of the Unit NAV or RM10.00 in absolute amount whichever

is higher. Nevertheless, for a reimbursement of a lesser amount, it will be up to the Manager’s

discretion.


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10. MANAGEMENT OF THE FUNDS

10.1 THE MANAGER’S PROFILE

PMB Investment Berhad (PMB Investment), formerly known as ASM Investment Services Berhad

(ASM Investment), is a wholly owned subsidiary of Pelaburan MARA Berhad (PMB). Its principal

activities are unit trust and funds management. It is an Islamic fund management company.

Incorporated on 15 January 1993 under the Companies Act, 1965 as ASM MARA Unit Trust

Management Berhad (ASM MARA Unit Trust), PMB Investment assumed the unit trust operations

from PMB, then known as Amanah Saham MARA Berhad (ASMB), and its related staff. This was done

following the requirement of the Securities Commission Act, 1993 that unit trust funds are to be

managed by a unit trust management company. PMB commenced operations in the late 1967 and its

first unit trust fund was established on 6 April 1968 which is now known as PMB Dana Al-Aiman.

ASM MARA Unit Trust had its name changed to ASM Investment on 9 October 2006 and it took over

the fund management operations of ASM Asset Management Sdn Bhd, another wholly-owned

subsidiary of PMB, to streamline the unit trusts and funds management activities of the group. ASM

Investment had its name changed to PMB Investment on 28 February 2014.

PMB Investment is licensed under the Capital Markets and Services Act, 2007 and its licence was

converted to an Islamic fund management company on 28 November 2014. It appointed Amanie

Advisors Sdn Bhd in Dec 2014 as its Shariah adviser.

The company has an authorised capital of RM10 million, of which RM8 million has been fully paid.

The PMB group concern has more than 45 years of experience in managing unit trust funds.

As at 29 February 2016, PMB Investment managed 13 unit trust funds and 2 wholesale funds valued

at RM309.2 million. Total fund size under management for unit trust funds, wholesale funds and

portfolio mandates was RM1.18 billion as at end February 2016.

10.2 BOARD OF DIRECTORS

• Datuk (Dr) Zamani bin Md Noor - Independent /Chairman

• Dato’ Sri Haji Abd Rahim bin Haji Abdul - Independent

• Professor Dr. Faridah binti Haji Hassan - Independent

• Haji Mansoor bin Ahmad - Independent

• Dato’ Mohamad Safie bin Haji Asnawi - Independent

• Nik Mohamed Zaki bin Nik Yusoff - Independent

• Ahmad Nazim bin Abd Rahman - Non-Independent

• Ameer Ali bin Vali Mohamed - Non-Independent /Chief Executive Officer

10.3 MANAGEMENT TEAM

•••• Ameer Ali bin Vali Mohamed

Ameer is the Chief Executive Officer of PMB Investment. He joined the Manager on 2 April 2012 and

brought with him more than 20 years of experience in the capital markets, having entered into the

securities industry in December 1990 as an investment analyst. He held positions in research analysis

and portfolio management including as fund manager of the then Arab-Malaysian Unit Trusts Berhad;

senior manager of Affin Fund Management Sdn Bhd; head of investment – external clients for Mayban

Investment Management Sdn Bhd before entrusted to establish and head its Business Development

Department; and CEO/CIO of OSK Asset Management Sdn Bhd. Prior to joining PMB Investment, he

was the CE/Managing Director of Amanah Saham Kedah Berhad.


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Among others, Ameer was the second-man in a team that was involved in the development of

Malaysia’s first privately managed Islamic equity unit trust fund that was launched in early 1993. He

was the first batch graduate of Bachelor of Business Administration (Hons) degree from the

International Islamic University Malaysia, where he graduated in 1988 with second class upper

honours. He started as a financial journalist with the then Business Times before entering into the

securities industry. He is the holder of a Capital Market Services Representative Licence (Islamic fund

management).

• Isnami bin Ahmad Mohtar

Isnami was appointed Acting Chief Investment Officer effective on 10 April 2014. He has more than 15

years of experience in the funds management industry, starting in 1996 when he was appointed Senior

Investment Officer at PMB Investment to manage some Bumiputera funds. He was subsequently

promoted to Portfolio Manager in 2000 and was given larger responsibilities to manage Shariah and

conventional unit trust and corporate funds. He was made Senior Manager, Fund Management in 2003.

He joined Inter-Pacific Asset Management Sdn Bhd in August 2007 as a Fund Manager, managing unit

trust and corporate funds. He rejoined PMB Investment in April 2010 and was re-designated Head,

Equity in January 2013. Isnami holds a Bachelor of Science degree in Business Administration

(Finance) from University of North Carolina at Charlotte, USA. He is the holder of a Capital Markets

Services Representative Licence (Islamic fund management).

• Zulkefli bin Tan Sri Yahya

Zulkefli is the Chief Sales Officer and joined the company on 7 January 2015. He is responsible for the

overall sales of the company. He brought with him an extensive experience in marketing and sales of

financial products and services. Prior to joining PMB Investment, he was with Affin Fund Management

Berhad for 3 years as Vice President, Business Development and Marketing. He was once the GM/CEO

of Asia Unit Trusts Berhad (1995-2001) and CEO of Amanah Ventures Berhad (2001-2004),

responsible primarily for product development and expanding assets under management. He

graduated with a B.A in Social Science (Economics/Law) from Canberra College of Advanced

Education, Australia.

• Mohd Adzhar bin Abd Hamed

Adzhar is the Deputy General Manager/Head, Compliance and Risk Management, PMB and he is

responsible for PMB Investment’s compliance matters related to the statutory and regulatory

requirements, and risk management. He possesses a Diploma in Banking Studies from UiTM and a

Bachelor of Corporate Administration (Hons) from the same university. He joined PMB on 1 March

2000. Prior to that, he was attached with one of the leading financial institutions in Malaysia for almost

6 years. He is the designated Compliance Officer of PMB Investment, and registered with the SC.

•••• Marina binti Ghazali

Marina is the Head of Marketing. She holds a Diploma in Mass Communication from UiTM. She has

more than 25 years of experience in marketing communications including public relations, advertising

and promotion. Currently, Marina manages the functions of investor relations, strategic marketing,

advertising and promotion. Prior to joining PMB Investment, she was attached to PMB as the Head of

Human Resource Development and Corporate Communication. Marina was also with Park May

Berhad (1995 – 1997) and a government agency (1988 – 1994).

•••• Aida binti Abu Bakar

Aida is the Head of Fund Administration. She joined the PMB Group in 1997 as a Senior Executive,

Projects and Venture Capital. In 2000, she was transferred to PMB Investment and has since

accumulated more than 15 years of experience in unit trust, attached to several departments within

the company covering product research and development, business development, investment, unit


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trust operations, marketing and promotion, customer administration and services, and agency

services. She has been instrumental in developing and launching PMB Investment’s Shariah retail

products and experience in merger, liquidation and conversion of unit trust schemes. Currently she

manages the functions of product development, trust administration and trust governance of PMB

Investment. She started her career in 1995 with a public listed company, Kumpulan Guthrie Berhad

where she gained exposure in accounting and finance. She holds a Master of Business Administration

from University of Wales, United Kingdom and a Bachelor of Arts in Accounting and Financial

Management from University of Essex, United Kingdom.

•••• Marlina binti Hj. Bustanuddin

Marlina is the Manager, Accounts of PMB Investment. She is responsible for the overall function of the

company accounts, unit trust accounts and portfolio accounts. She obtained her Bachelor of

Accountancy from UiTM in June 2001 and Diploma in Accountancy from the same university in

November 1998. She is also a member of the Malaysian Institute of Accountants (MIA). Marlina has

been with the PMB Investment since 2007.

10.4 SUMMARY OF FINANCIAL POSITION

10.5 ROLES, DUTIES AND RESPONSIBILITIES OF THE MANAGEMENT

COMPANY

PMB Investment is responsible for the day-to-day management of the Funds, in accordance with the

provision of this Master Prospectus (as amended from time to time) the Deeds, Act and the Guidelines

on Unit Trust Funds. Our main functions, duties and responsibilities include but not limited to the

following:-

a) Marketing, distribution, sale and repurchase of units of the Funds;

b) Maintenance of proper records of the Funds;

c) Distributing annual and interim reports of the Funds;

d) Providing customer services;

e) To ensure that the interests of the Unit Holders are best served and protected at all times;

f) To formulate and propose for implemention the portfolio strategy in line with the Funds’

investment objective and Investment Committee direction;

Audited Year 31 December (RM ‘000)

2015 2014 2013

Authorized Capital 10,000 10,000 10,000

Paid-up Capital 8,000 6,000 5,000

Share Premium 1,000 1,000 1,000

Shareholders’ Funds 11,884 10,550 11,161

Turnover 273,146 106,861 82,638

Pre-tax Profit/ (Loss) 52 185 (1,049)

After Tax Profit 52 185 (1,049)


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g) To review the performance and portfolio composition of the Funds and to make the necessary

recommendations thereof to the Investment Committee;

h) To review the market trend (both local and international) and make the necessary

recommendation to the Investment Committee;

i) To recommend securities or other investment instruments in line with the Funds’ objectives;

j) To undertake in depth market and company research so as to assist in the investment decision

making; and

k) To be responsible for the day to day management of the Funds consistent with the Guidelines and

the direction of the Investment Committee.

10.6 MANAGER’S DELEGATE

PMB Investment has delegated the following functions to PMB:

a) Information Technology

b) Human Resource Development

c) Corporate Communications

d) Administration

e) Compliance

f) Operational Risk Management

g) Internal Audit

h) Business Strategy and Planning

PMB is a strategic investment and asset management company wholly-owned by Majlis Amanah

Rakyat (MARA), a statutory agency of the Government of Malaysia. Established on 24 June 1967, PMB

is principally involved in private equity investments, portfolio fund management, unit trust

management, financial services and corporate advisory. PMB is the parent company of PMB

Investment.

The roles and responsibilities of PMB, being the delegate of the Manager, are –

(a) to ensure that the functions are discharged in effective and efficient manners;

(b) to communicate to the Manager on any relevant changes or latest development related to the

functions;

(c) to consider, propose and implement any relevant improvements related to the functions; and

(d) to ensure that the relevant laws governing the Manager are complied with at all times.

10.7 MATERIAL LITIGATION AND ARBITRATION

As at 29 February 2016, PMB Investment was not engaged, pending or threatened, in any material

litigation and arbitration. It was also disclosed under the Directors’ Report that there is no contingent

liability that will or may substantially affect our ability to meet the obligations as and when they fall

due.


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10.8 INVESTMENT COMMITTEE

10.8.1 Profile of Investment Committee Members

a) Haji Mansoor bin Ahmad (Independent/Chairman)

Mansoor received his Bachelor of Economics (Hons) degree from the University of Malaya and Master

of Business Administration from the Australian Graduate School of Management, University of New

South Wales, Sydney, Australia. He joined Komplek Kewangan Malaysia Berhad in September 1975 as

a Research Officer and was later transferred to PMB and became an Investment Officer in 1982. He

was promoted as Head of Investment and Corporate Development in 1991 and as General Manager of

Operations in 1996, overseeing all investment and business development function of PMB. In 1999, he

was seconded to ASM Asset Management Sdn. Bhd, a licensed fund management company as a General

Manager and served in that capacity until March 2002. He was transferred to PMB Investment and

was subsequently appointed as the Chief Executive Officer on 2 May 2002 and also as an Executive

Director on 1 April 2004. He was appointed as a member of the Investment Committee on 6 June 2002.

He was also elected as a Council Member of FIMM for two (2) consecutive two-year terms since 2004.

On 1 December 2006, Mansoor Ahmad was re-designated as the Executive Director/Adviser of PMB

Investment. He retired on 6 July 2007 and thereafter has served as the Director of PMB Investment

until today.

b) Nik Mohamed Zaki bin Nik Yusoff (Independent)

Nik Mohamed Zaki was appointed as a member of the Investment Committee on 15 June 2009. He

graduated from Carleton University, Ottawa, Canada in 1985 and holds a Bachelor of Commerce

(Hons) Degree. He has more than 25 years of experience in the financial industry. He started his career

with financial institutions in commercial banking before furthering his career in merchant banking

with Affin Investment Bank Berhad. He left the banking sector in 1994 to join PMB as Head, Corporate

Development Unit and has been part of Group’s Senior Management team since 1997. In PMB Group,

he has gained further experience in fund management, unit trust operations, strategic and financial

planning and venture capital/equity investment amongst others. He retired as the Group Chief

Executive Officer of PMB on 30 April 2013. He has served as a Board member of PMB Investment since

May 2008.

c) Professor Dr. Mohamed Aslam bin Mohamed Haneef (Independent)

Professor Dr. Mohamed Aslam was appointed a member of the Investment Committee on 1 January

2016. He is currently a Professor of Economics at the Economics Department and Director, Centre for

Islamic Economics at the International Islamic University, Malaysia (IIUM) in Kuala Lumpur. He

previously served as an Investment Committee member of a local fund management company for 13

years from September 2001 to October 2014.

He was in the pioneer batch of Bachelor of Economics (Hons) graduates from IIUM in 1987, obtained

his Master’s degree in Economics from University Malaya in 1991. He received his PhD in 1994 from

the School of Development Studies, University of East Anglia, United Kingdom. He was conferred with

Associate Professor in 2000 and Professor in 2006.

Mohamed Aslam is also an executive committee member of the International Association for Islamic

Economics (IAEI) and an executive committee member of the International Council of Islamic Finance

Educators (ICIFE). He has written a number of books, articles, chapters in books and book reviews.

d) Ahmad Nazim bin Abd Rahman (Non-Independent)

Ahmad Nazim was on 15 July 2013 appointed as Group Chief Executive Officer of Pelaburan MARA

Berhad, an investment and asset management firm wholly-owned by the Government of Malaysia. He

was previously Chief Executive Officer of a regional telecommunication group and had served as

President Director of its Indonesian subsidiary, responsible for the group’s telecommunication


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infrastructure business in the region. He is also a member of the board of Singapore-based private

equity funds Al Masah Capital (Asia) Pte Ltd.

Ahmad Nazim started his career in law and corporate finance and had worked with firms in Kuala

Lumpur and London and with Securities Commission of Malaysia. He obtained his Bachelor of Laws

(Hons) from IIUM in 1999 and Master of Laws from Georgetown University, Washington, DC, USA in

2004.

10.8.2 Roles and Functions of the Investment Committee

The functions and responsibilities of the Investment Committee are as follows:-

a) To ensure the investment management policies of the Funds are consistent with the Funds’

objectives, this Master Prospectus (as amended from time to time), the Deeds and the Guidelines

and other relevant laws;

b) To formulate investment policies and plan, and to select appropriate strategies to meet the Funds’

objectives;

c) To provide guidance and advice in the implementation of the strategies;

d) To actively monitor, measure and evaluate the investment performance of the Funds and the Fund

Manager;

e) To consider other matters deemed necessary for the benefit of the Funds; and

f) To recommend the Funds’ income distribution and/or unit splitting for the Trustee’s approval.

g) To meet at least once every two (2) months to monitor the fund management activities of the

Management Company.

10.9 SHARIAH ADVISER OF THE FUNDS

10.9.1 Profile of the Shariah Adviser

BIMB Securities Sdn Bhd (BIMBSEC) is a stockbroking subsidiary of BIMB Holdings Bhd. It was

incorporated on 21 February 1994.

The company’s corporate mission is to actively participate in a modern, innovative and dynamic

Islamic capital market in Malaysia, catering for the needs of both Muslims and Non-Muslims. BIMBSEC

is a registered Shariah Adviser under Securities Commission and has been offering Shariah advisory

services for Islamic capital market products (ICM) such as Islamic investment funds, Sukuk issuance

and other approved ICM instruments for more than 15 years.

BIMBSEC is a Corporate Shariah Adviser to 22 Islamic unit trust funds. As at 29 February 2016, the

staff strength of BIMBSEC consists of 71 employees of whom 63 are executive staff and 8 are non-

executive staff.

The company has an authorised share capital of RM250 million, and its current issued and paid-up

share capital is RM100 million. The shareholdings of BIMBSEC are as follows:-

Shareholders % of Holding

BIMB Securities Holdings Sdn Bhd

(wholly owned subsidiary of BIMB Holdings Berhad) 51

BIMB Holdings Berhad 49


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10.9.2 BOARD OF DIRECTORS

Name Position

Zahari @ Mohd Zin bin Idris Non-Executive Director

Rashid bin Ismail Executive Director/CEO

Dato’ Johan bin Abdullah Non-Executive Director

Abdul Kadir bin Sahlan Non-Executive Director

Mohamad Rani Dali bin Samsudin Executive Director

Mustapha bin Hamat Non-Executive Director

10.9.3 DESIGNATED PERSON RESPONSIBLE FOR SHARIAH MATTERS

Ir. Dr. Muhamad Fuad bin Abdullah

Ir. Dr. Muhamad Fuad, the designated person in-charge of all Shariah matters in BIMBSEC is appointed

to the Shariah Advisory Committee of BIMBSEC effective 1 June 2011.

He graduated with a Bachelor of Science Degree in Electrical Engineering in 1977 and a Master of

Philosophy Degree in Electrical Engineering in 1982 both from the University of Southampton,

England. He also obtained a Bachelor of Arts (Jayyid) Degree in Shariah from the University of Jordan

in 1994 and a Doctor of Philosophy in Muslim Civilization from the University of Aberdeen, Scotland

in 1996.

Currently Dr. Muhamad Fuad serves as the Chairman of the Shariah Committee of MIDF Group of

Companies and a member of the Group Shariah Committee of MNRB Holdings Bhd. He is a registered

Shariah Adviser with the Securities Commission Malaysia (SC) which qualifies him to advise on

Shariah-compliant products and services regulated by the SC.

He is also a registered Shariah lawyer of Majlis Agama Islam Perak and an Adjunct Professor of

Universiti Teknikal Malaysia Melaka (UTeM).

He sits on the boards of Sime Darby Bhd, Sime Darby Energy Sdn Bhd, Sime Darby Utilities Sdn Bhd,

MIDF Property Berhad, Mesiniaga Berhad and Institut Kefahaman Islam Malaysia (IKIM), a public

company limited by guarantee.

Dr. Muhamad Fuad is the designated Shariah person in-charge of PMB Investment’s Funds.

10.9.4 ROLES AND FUNCTIONS OF SHARIAH ADVISER

a. The responsibilities of the Shariah Adviser are to ensure that the Funds are managed and operated in

accordance with Shariah principles, relavant SC regulations and/or standards including resolutions

issued by the SAC.

b. The Shariah Adviser shall provide expertise and guidance for the Funds in all matters relating to

Shariah principles, including on the Deeds and prevailing Master Prospectus, its structure and

investment process and other operational matters.

c. Where there is any ambiguity or uncertainty as to an investment, instrument, system, procedure

and/or process, the Shariah Adviser shall consult the SC.

d. The Shariah Adviser is responsible to review the Funds’ compliance report as provided by the

compliance officer and investment transaction report provided by or duly approved by the Trustee, to

ensure that the Funds’ investments are in line with Shariah principles.

e. The Shariah Adviser shall prepare a report to be included in the Funds’ interim and annual report

certifying whether the Funds have been managed and operated in accordance with Shariah principles

for the period concerned.


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f. The Shariah Adviser shall meet with the Fund Manager on a quarterly basis or any other ad-hoc

meeting as required for review of the Fund’s management and investment to ensure compliance with

Shariah principles or any other relevant principle at all times.

10.10 DESIGNATED FUND MANAGERS

•••• Ameer Ali bin Vali Mohamed

The detailed profile is as aforementioned in Section 10.3.

•••• Isnami bin Ahmad Mohtar

The detailed profile is as aforementioned in Section 10.3. He manages PMB Mutiara, PMB SMCF and

PMB SBF.

•••• Norzahari bin Zakaria

Norzahari is the Head of Research and reports to the Acting CIO. He is responsible for the overall

management of the investment research activities of the company, including but not limited to

economic research, equity research, fixed income research and money market research. He also

manages some equity funds. Norzahari has been in the financial industry since September 1990 with

extensive experience in credit review, credit marketing, credit control, business development,

venture capital as well as equity research and fund management. He joined PMB in July 2000 and

was initially attached to its Project Department where his job scope was overseeing the venture

capital and credit activities of the company. Subsequently in February 2006, he was transferred to

ASM Asset Management Sdn Bhd and later to PMB Investment. He assumed the current position in

January 2013. Norzahari holds a Diploma in Business Studies and BBA (Hons) Finance from UiTM.

He is the holder of a Capital Markets Services Representative Licence (Islamic fund management).

He manages PMB Al-Aiman, PMB Bestari and PMB STEF.

• Suliman bin Bakar

Suliman is the Senior Manager, Portfolio. He joined the Manager on 5 October 2015. Prior to joining

PMB Investment, he was with Kedah Islamic Asset Management Berhad from 1995 until 2015 and

his last position was Executive Director / Head of Portfolio and Research Department. Prior to that,

he was attached with one of the leading financial institutions in Malaysia from 1991 until 1994. He

has accumulated more than 21 years of experience in fund management industry. He holds a Diploma

in Accountancy from UiTM. He is the holder of a Capital Markets Services Representative Licence

(Islamic fund management). He manages PMB STF.

• Adil Azhar bin Ibrahim

Adil Azhar is the Portfolio Manager, Fixed Income. He manages fixed income portfolios as well as

monitors and conducts analysis on fixed income securities and money market instruments. He joined

PMB in October 2013 as Portfolio Manager, Direct Investment and was responsible for the overall

due diligence on all potential investments before being assigned to the current position in PMB

Investment in July 2014. He was previously attached to the Investment Operations and Financial

Market Department of Bank Negara. Adil Azhar holds a Degree in Engineering from Hokkaido

University, Hokkaido, Japan. He is the holder of a Capital Markets Services Representative Licence

(Islamic fund management).

• Amirul Imran bin Ahmat

Amirul Imran is the Portfolio Manager, Fixed Income. He monitors and conducts analysis on fixed

income securities and money market instruments. He joined PMB in June 2014 as Portfolio Manager,

Investment Management and was responsible for the overall due diligence on all potential

investments before being assigned to the current position in PMB Investment in March 2015. Prior

to that, he held positions in banking industry including as Assistant Vice President of Affin

Investment Bank Berhad, Manager of RHB Islamic Bank Berhad, Manager of AmInvestment Bank (M)


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Bhd and Portfolio Manager of Kumpulan Wang Persaraan Berhad. Amirul Imran holds a B.A (Hons)

Business Administration from University of East London. He is the holder of a Capital Markets

Services Representative Licence (Islamic fund management).

• Mohd Redzuan bin Mohd Isa

Mohd Redzuan is the Assistant Manager, Research and he also manages portfolio. He joined PMB

Group in April 2002 and was attached to various departments within the Group. He was transferred

to PMB Investment in January 2010 as an Investment Analyst and assumed the current position in

September 2010. Prior to joining the Group, he served Malaysia Insurance Institute as Senior

Executive and was among the pioneers Paid Dealer’s Representative with Perak Traders Sdn Bhd

(later known as M&A Securities Sdn Bhd) for 10 years. For the period January 2015- January 2016

he was seconded to the Ministry of Higher Education under the Cross Fertilization Program

coordinated by TalentCorp Malaysia. Redzuan holds a Master of Business Administration from

University of Malaya, Bachelor of Business Administration from Temple University, Pennsylvania,

USA and Diploma in Actuarial Science from UiTM. He is the holder of a Capital Markets Services

Representatives Licence (Islamic fund management). He manages PMB SDF, PMB SAF, PMB SGF and

PMB SPF.

• Norhazira binti Mazelan

Norhazira is the Assistant Portfolio Manager. She assists in managing fixed income portfolios as well

as monitors and conducts analysis on fixed income securities and money market instruments. She

joined PMB in February 2014 as Senior Executive, Investment Management, and was responsible for

assisting in money market and fixed income transactions before being assigned to the current

position in PMB Investment in June 2014. She was previously attached to Small Medium Enterprise

Development Bank of Malaysia Kuala Lumpur as an Associate for its Treasury and Investment

Department. Norhazira holds a Bachelor of Business Administration Hons (Finance) from UiTM. She

is the holder of a Capital Markets Services Representative Licence (Islamic fund management). She

manages PMB SCMF.

• Nur Raihan binti Munir Nur Raihan is the Assistant Portfolio Manager. She assists in managing fixed income portfolios as

well as monitors and conducts analysis on fixed income securities and money market instruments.

She joined PMB in June 2014 as Senior Executive, Investment Management, and was responsible for

assisting in money market and fixed income transactions before being assigned to the current

position in PMB Investment in November 2014. She was previously attached to Small Medium

Enterprise Development Bank of Malaysia Kuala Lumpur as an Associate for its Treasury and

Investment Department. Nor Raihan holds a Bachelor of Business Administration Hons (Finance)

from UiTM. She is the holder of a Capital Markets Services Representative Licence (Islamic fund

management).

• Siti Rafidah binti Ghazali

Siti Rafidah is the Executive, Portfolio Solutions, and an alternate designated fund manager. She

joined PMB Investment in January 2013 as an Equity Analyst. Prior to that, she was attached to Henry

Butcher Malaysia (Sel) Sdn Bhd as a Valuation Executive in 2012 and Warisan Mukmin Sdn Bhd as

an Investment Executive. Siti Rafidah holds a Bachelor of Real Estate Management from UiTM. She is

the holder of a Capital Markets Services Representative Licence (Islamic fund management).

• Nahdatul Syima binti Mohd Saad

Syima is an Equity Analyst and an alternate designated fund manager. She joined PMB Investment in

January 2013. Prior to that, she was attached to Public Bank Berhad as a Graduate Trainee (Credit

Analyst for Hire Purchase) in 2012. Syima holds a Bachelor of Business Administration and Diploma

in Investment Analysis from UiTM. She is the holder of a Capital Markets Services Representative

Licence (Islamic fund management). She manages PMB SIF.


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11. THE TRUSTEE OF THE FUNDS

11.1 AMANAHRAYA TRUSTEES BERHAD

Company Profile

AmanahRaya Trustees Berhad (ART) is the trustee for PMB Dana Al-Aiman, PMB Dana Bestari, PMB

Dana Mutiara, PMB Shariah Aggressive Fund, PMB Shariah Growth Fund, PMB Shariah Index Fund,

PMB Shariah Premier Fund, PMB Shariah Balanced Fund, PMB Tactical Fund and PMB Shariah Cash

Management Fund.

ART was incorporated on 23 March 2007 under the Companies Act, 1965 and registered as a trust

company under the Trust Companies Act, 1949. 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 unit trust funds and has 204 unit

trust funds under its trusteeship. As at 29 February 2016, ART has 88 staff (66 executives and 22 non-

executives).

ART has an authorized share capital of RM5,000,000. Its issued and paid-up share capital is

RM2,000,000 and RM1,000,000 respectively.

Board of Directors

• Dato’ Haji Ismail bin Ibrahim (Chairman) - Independent, Non-Executive Director

• Dato’ Haji Che Pee bin Samsudin - Non-Independent, Non-Executive Director

• Datuk Johar bin Che Mat - Non-Independent, Non-Executive Director

• Tuan Haji Zulkifly bin Sulaiman - Independent, Non-Executive Director

• Tuan Haji Mansor bin Salleh - Non-Independent, Non-Executive Director

• Puan Mahfuzah binti Baharin - Non-Independent, Non-Executive Director

Chief Executive Officer

Hajjah Habsah binti Bakar

Summary of Financial Position

Year Ended 2015 2014 2013

(Unaudited)

(RM’000) (RM’000) (RM’000)

Paid-Up Share Capital 1,000 1,000 1,000

Shareholders’ funds 11,144 9,657 9,421

Turnover 32,205 30,326 27,861

Profit before tax 24,311 22,806 20,332

After Tax Profit/Loss 18,887 17,236 15,281

Material Litigation

As at 29 February 2016, ART was not engaged in any material litigation and arbitration, either as

plaintiff or defendant, and ART is not aware of any proceedings, pending or threatened or of any facts

likely to give rise to any proceedings which might materially affect the business financial position of

ART.


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11.2 CIMB ISLAMIC TRUSTEE BERHAD

Company Profile

CIMB Islamic Trustee Berhad was incorporated on 19 January 1988 and registered as a trust company

under the Trust Companies Act, 1949 and having its registered office at Level 13, Menara CIMB, Jalan

Stesen Sentral 2, Kuala Lumpur Sentral 50470, Kuala Lumpur, Malaysia. The Trustee is qualified to

act as a trustee for collective investment schemes approved under the Capital Markets and Services

Act 2007.

CIMB Islamic Trustee Berhad has an authorised capital of RM5,000,000 divided into 500,000 ordinary

shares of RM10 each of which the total issued capital is RM2,000,000 divided into 200,000 ordinary

shares of RM10 each, and the total paid up capital is RM1,000,000 divided into 200,000 ordinary

shares of RM10 each and partly paid-up at RM5 each.

As at 29 February 2016, CIMB Islamic Trustee Berhad acts as trustee to one (1) real estate investment

trust funds, twenty two (22) unit trust funds, twenty two (22) wholesale funds and one (1) private

retirement scheme (consisting of three (3) funds) and has more than twenty six (26) years of

experience as a trustee to unit trust funds.

In addition to overseeing these funds, CIMB Islamic Trustee Berhad also acts as trustee to private debt

securities issues such as Sukuk, bonds and notes. Other than being the administrator of deceased’s

estates, executor of wills, trustee for minors or incapacitated persons, CIMB Trustee also acts as

trustee for public, charitable, staff retirement, and pension/ gratuity fund scheme, custodian trustee

for associations, clubs and others.

CIMB Islamic Trustee Berhad is supported by twenty (20) staff, comprising of sixteen (16) executives

and four (4) non-executives as at 29 February 2016.

Board of Directors

• Zahardin bin Omardin - Non-Executive, Independent Director & Chairman

• Mohamad Safri bin Shahul Hamid - Non-Executive, Non-Independent Director

• Liew Pik Yoong - Executive, Non-Independent Director

Chief Executive Officer

Liew Pik Yoong

Summary of Financial Position

Year Ended 2014

(RM’000)

2013

(RM’000)

2012

(RM’000)

Paid-Up Share Capital

Shareholders’ Fund

Turnover *

Profit Before Tax

Profit After Tax

1,000

5,018

3,403

1,312

945

1,000

6,573

2,788

370

263

1,000

6,311

4,000

1,386

993

*Only Shariah-compliant income are recognized since the entity’s conversion to Islamic in 2012.

Trustee’s Delegate

CIMB Islamic Trustee Berhad has appointed CIMB Bank Berhad (CIMB Bank) as the Custodian of the

Fund’s assets. CIMB Bank's ultimate holding company is CIMB Group Holdings Berhad. a listed


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company in Bursa Malaysia and currently the second largest financial services provider in Malaysia.

CIMB Bank provides full fledged custodial services, typically clearing settlement and safekeep all

types of investment assets and classes, to a cross section of investors and intermediaries client base,

both locally and overseas.

For the local Ringgit assets, they are held through its wholly owned nominee subsidiary “CIMB Group

Nominees (Tempatan) Sdn Bhd”. For foreign non-Ringgit assets, CIMB Bank appoints global custodian

as its agent bank to clear, settle and safekeep on its behalf and to its order.

All investments are automatically registered in the name of the custodian to the order of the Trustee.

CIMB Bank Berhad acts only in accordance with instructions from the Trustee.

Material Litigation

As at 29 February 2016, CITB was not engaged in any material litigation and arbitration, including

those pending or threatened, and any facts likely to give rise to any proceedings which might

materially affect the business/financial position of CITB or any of its delegates.

11.3 TRUSTEE’S STATEMENT OF RESPONSIBILITY

Each Trustee has given its willingness to assume the position as Trustee of the Funds and all the

obligations in accordance with the Deed, all relevant laws and rules of law.

11.4 ROLES, DUTIES AND RESPONSIBILITIES OF THE TRUSTEE

The functions, duties and responsibilities of each Trustee are set out in the Deed. The general

functions, duties and responsibilities of the Trustee include, but are not limited to, the following:-

a) Take into custody the investments of the Fund and hold the investments in trust for the Unit

Holders;

b) Ensure that the Manager operates and administers the Fund in accordance with the provisions of

the Deed, SC Guidelines and acceptable business practice within the unit trust industry;

c) As soon as practicable notify the Securities Commission Malaysia of any irregularity or breach of

the provisions of the Deed, SC Guidelines and any other matters which in the Trustee’s opinions

may indicate that the interests of unit holders are not served;

d) Exercise reasonable diligence in carrying out its functions and duties, actively monitoring the

operation and management of the Fund by the Manager to safeguard the interests of Unit Holders;

e) Maintain, or cause the Manager to maintain, proper accounting records and other records as are

necessary to enable a complete and accurate view of the Fund to be formed and to ensure that the

Fund is operated and managed in accordance with the Deed of the Fund, Prospectus, the SC

Guidelines and securities law; and

f) Require that the accounts be audited at least annually.

Each Trustee has covenanted in the Deed that it will exercise all due diligence and vigilance in carrying

out its functions and duties, and in safeguarding the rights and interests of Unit Holders.

11.5 TRUSTEE’S DECLARATION

Each Trustee is independent of the Manager. The Trustee will carry out transactions on an arm’s

length basis and on terms which are best available for the Funds, as well as act at all times in the best

interest of the Unit Holders. The Trustee also has adequate procedures and processes in place to

prevent or control conflicts of interest.


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11.6 TRUSTEE’S OBLIGATION

Each Trustee’s obligation in respect of monies paid by an investor for the application of units arises

when the monies are received in the relevant account of the Trustee for the Funds and the Trustee’s

obligation is discharged once it has paid the redemption amount to the Manager.


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12. SALIENT TERMS OF THE DEED

12.1 RIGHTS AND LIABILITIES OF A UNIT HOLDER

Your rights

a) The right to receive the distributions of income (if any), participate in any increase in the value

of the Units andto enjoy such other rights and privileges as provided for in the Deed.

b) Subject to the provosions of the Deed, the right to call for a Unit Holders’ meeting for any

resolutions, and also to vote for the removal of the Trustee or the Manager through a special

resolution.

c) The rights to exercise your cooling-off period if you invest for the first time with PMB

Investment except for if you are either corporate/institutional clients, staff of the Manager or a

person registered with a body approved by the SC to deal in unit trusts.

d) The right to receive annual reports and interim reports of the Fund, which are sent out within

two (2) months from the closing of each financial year and the interim period.

Limitation of Rights

a) Unit Holders are not entitled to request for the transfer of any assets in the Fund or be entitled

to interfere with or question the exercise by the Trustee or by the Manager on the Trustee’s

behalf of the rights of the Trustee as the owner of such assets.

b) Unit Holders are not entitled to attend any meeting of shareholders, stockholders or debenture

holders or to vote or take part in or consent to any company or shareholders', stock holders' or

debenture holders' action.

Your Liabilities

You would not be liable and shall not be under any obligation to indemnify the Trustee and/or the

Manager in the event that the liabilities incurred by the Trustee and/or the Manager in the name of

or on behalf of the Fund pursuant to and/or in the performance of the provisions of the Deed exceed

the value of the assets of the Fund, and any right of indemnity of the Trustee and/or Manager will be

limited to recourse to the Fund.

12.2 FEES AND CHARGES

Enlisted below are the maximum fees and charges permitted by the Deed:

Sales Charge 7.0% of the NAV per unit All Funds except

PMB SDF

6.5% of the NAV per unit PMB SDF

Repurchase

Charge Nil All Funds

Annual

Management Fee

1.50% per annum of the NAV of the Fund All Funds except

PMB SDF

1.8% per annum of the NAV of the Fund PMB SDF

Annual Trustee

Fee

0.50% per annum of the NAV of the Fund All Funds except

PMB SDF

0.10% per annum of the NAV of the Fund

subject to the minimum of RM18,000 p.a PMB SDF


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All current fees and charges are disclosed in sections 3.2 and 8 of this Master Prospectus. The disclosed

current fees and charges in sections 3.2 and 8 of this Master Prospectus could be lower than that stated

in the Deed. Any increase in the current sale and/or repurchase charges stated in the current Master

Prospectus could only be made if:

a) the Manager has notified the Trustee in writing of the higher charge and the effective date of the

charge;

b) a supplementary Master Prospectus stating the higher charge is issued;

c) time as required by the law has elapsed since the issuance of the supplementary Master

Prospectus; and

d) the maximum fees or charges stated in the Deed shall not be breached.

Any increase in the current annual management fee and/or annual trustee fee stated in the current

Master Prospectus could only be made if:

a) (for management fee) the Manager has notified the Trustee in writing of the new higher rate and

the trustee agrees to it;

b) (for Trustee fee) the Trustee has notified the Manager in writing of the new higher rate, and the

Manager agrees to it;

c) the Manager has notified unit holders of the higher rate and its effective date;

d) a supplementary Master Prospectus stating the higher rate of fees has been registered and issued;

e) time as required by the law has elapsed since the issuance of the supplementary Master

Prospectus; and

f) the maximum fees stated in the Deed shall not be breached.

Any increase of the fees and / or charges above the maximum rate stated in the Deed shall require Unit

Holders’ approval and can only be made by way of a supplemental deed and in accordance with the

requirements of the CMSA.

If any goods and services tax is imposed on or made payable by Unit Holders by virtue of any law,

regulation, directive or order by any governmental authority, in connection with or in relation to any

dealings in Units of the Fund(s) or any services provided by the Manager of the Trustee(s) in

connection with or in relation to the Fund(s), Unit Holders shall pay such goods and services tax to the

Manager and/or the Trustee(s) for onward payment to the relevant governmental authorities.

12.3 PERMITTED EXPENSES The Trustee shall at the request of the Manager pay out of the Cash Produce all costs, charges and

expenses that are directly related and necessary to the business of the Fund. These would include:

a) all fees authorised by the Deed to be paid out of the Fund to the Trustee and/or the Management

Company as stipulated;

b) all fees and disbursements of the Auditor;

c) professional and accounting fees and disbursements approved by the Trustee, including that

charged by any delegate of the Trustee in relation to the custody of any investments;

d) the costs of printing and despatching to Unit Holders the accounts of the Trust, tax certificates,

dividend warrants, notices of meeting of Unit Holders, newspaper advertisements and such other

similar costs as may be approved by the Trustee;

e) valuation fees of independent valuers payable in respect of the Fund;

f) duties and taxes of the government payable in respect of the Fund;

g) all expenses incurred by the Trustee in effecting registration, insurance or safe custody of the

documents of title to all investments held upon the trust of this Deed, including that charged by

any delegate of the Trustee in relation to the custody of any such investments;

h) commission/fees paid to brokers in effecting dealings in the investments of the Fund, shown on

the contract notes or confirmation notes or difference accounts;

i) costs incurred for the modification of this Deed other than those for the benefit of the Manager;


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Provided that expenses such as the general overhead expenses of the Manager and other expenses for

such services rendered by the Manager which would be expected to fall within the normal expertise

of the Manager should not be paid out of the Fund and provided further that promotional expenses

and expenses incurred in the registering and issuing of prospectuses shall not be paid out of the Fund

if service charges or upfront fees are levied on the Units sold. All expenses to be paid out of the Fund

shall be authorised by the Deed and disclosed in the prospectus.

Provided further that the quantum of the expenses chargeable to the Trust shall not be excessive or

more than the standard commercial rates. In instances where uncertainty arises as to the status of the

expenses the Trustee shall use its discretion in determining the legitimacy of the expenses.

In respect of the Shariah-Compliant Funds, in addition to the costs, charges and expenses set out in

the above items, the Trustee shall also pay out of the Cash Produce such sum (if applicable) as

determined by the Manager, in consultation with the Shariah Adviser, as necessary pursuant to the

purification process to ensure that the income shall be pure of profits or income derived from un-

Islamic activities. Any sum paid out of the Cash Produce pursuant hereto shall be donated to charitable

organisations approved by the Trustee, the Management Company and as agreed by the Shariah

Adviser.

12.4 REMOVAL, REPLACEMENT AND RETIREMENT OF THE MANAGEMENT

COMPANY AND TRUSTEE Subject to the provisions of the Deed and the relevant laws, the Manager may retire upon giving twelve

(12) months' notice to the Trustee of its desire to do so or such a shorter period as the Trustee and the

Manager may agree, and the Manager may by way of a deed appoint in its stead a new management

company subject to the approval of the SC.

Subject to the provisions of the Deed and the relevant laws, the Manager may be removed and another

management company may be appointed by special resolution of the Unit Holders at a Unit Holders’

meeting convened in accordance with the relevant Deed.

Subject to the provisions of the Deed and the relevant laws, the Trustee shall take reasonable steps to

remove the Manager as soon as practicable after becoming aware of any such circumstances as stated

in subsection 12.4(a) to (f) of this Master Prospectus under the sub-heading "Power of Trustee to

Remove, Retire or Replace the Manager".

Powers of the Management Company to Remove and Replace the Trustee

As allowed under Section 299 of the Act we shall take all reasonable steps to replace the Trustee as

soon as practicable after becoming aware that:-

a) the Trustee has ceased to exist;

b) the Trustee has not been validly appointed;

c) the Trustee is not eligible to be appointed or to act as trustee under Section 290 of the Act;

d) the Trustee has failed or refused to act as a Trustee in accordance with the provisions or

covenants of the Deed or the provision of the Act;

e) a receiver is appointed over the whole or a substantial part of the assets or undertaking of the

existing Trustee and has not ceased to act under that appointment, or a petition is presented for

the winding up of the existing Trustee (other than for the purpose of and followed by a

reconstruction, unless during or following such reconstruction the existing trustee becomes or is

declared to be insolvent); or

f) 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 laws.


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Retirement, Removal or Replacement of the Trustee

The Trustee may retire upon giving twelve (12) months' notice to the Manager of its desire to do so,

or such shorter period as the Manager and the Trustee may agree, and may by deed appoint in its stead

a new trustee approved by the relevant authorities and under any relevant law.

The Trustee may be removed and another trustee may be appointed by Special Resolution of the Unit

Holders at a Unit Holders’ meeting convened in accordance with the Deed or as stipulated in the Act.

Power of Trustee to Remove, Retire or Replace the Manager

Subject to the Deed and the relevant laws, the Trustee may take steps to remove the Manager in the

event that:

a) the Manager goes into liquidation (except for the purposes of amalgamation or reconstruction or

some other purpose approved by the relevant authorities); or

b) the Manager is in breach of its obligations under the Deed, the Act or the Securities Commission

Malaysia’s Guidelines on Unit Trust Funds; or

c) the Manager has had a receiver appointed; or

d) the Manager has ceased to carry on business; or

e) a special resolution has been passed at the Unit Holders’ meeting to remove the Manager in

accordance with the Deed; or

f) the Manager 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 Unit Holders for it to do so after the

Trustee has given notice to the Manager of that opinion and the reasons for that opinion, and has

considered any representations made by the Manager in respect of that opinion, and after

consultation with the SC and with the approval of the Unit Holders by way of a special resolution.

12.5 TERMINATION OF THE FUND

Upon the occurrence of any of the following events:

a) if the Manager has gone into liquidation, except for the purpose of reconstruction or amalgamation

upon terms previously approved in writing by the Trustee and the relevant authorities; or

b) if, in the opinion of the Trustee, the Manager has ceased to carry on business; or

c) if, in the opinion of the Trustee, the Manager has to the prejudice of Unit Holders failed to comply

with the provisions of this Deed or contravened any of the provisions of any relevant law

and at a Unit Holders' meeting summoned by the Trustee in accordance with the Deed, a special

resolution is passed to terminate or wind up the Fund, the Trustee shall apply to Court to confirm such

special resolution. Upon obtaining the relevant Court order, the Trustee shall take steps to terminate

and winding up the Fund in accordance with the Court order, the Deed, the prevailing Acts and

Guidelines.

12.6 UNIT HOLDERS’ MEETING

Subject to the Deed and the prevailing Acts and Guidelines, a Unit Holders’ meeting could be summoned

for any purpose with the salient details as follow:-

a) The Manager and the Trustee may convene a Unit Holders’ meeting at any time, whilst, the Unit

Holder could request for a meeting provided the written request comes from not less than 50 Unit

Holders or 1/10 of Unit Holders;

b) If the meeting is requested by the Manager, a notice of the meeting would be sent out not less than

fourteen (14) days of any such meeting. Whereas, if a meeting is summoned by the Unit Holders,

the Manager will send a notice by post at least seven (7) days before the meeting, and also publish

a notice in the newspaper at least fourteen (14) days before the meeting;

c) The Manager is entitled to receive notice of and to attend at any Unit Holders’ meeting but in

respect of Units which the Manager hold or is deemed to hold, then the Manager is not entitled to

vote at or be counted in the quorum for such meeting. And accordingly, for the purposes of the


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following provisions of this Clause, Units held or deemed to be held by the Manager shall not be

regarded as being an issue;

d) The quorum required for a meeting of the Unit Holders shall be 5 Unit Holders, whether present

in person or by proxy, provided always that the quorum for a meeting of the Unit Holders

convened for the purpose of removing the Manager and/or the Trustee shall be ten (10) Unit

Holders, whether present in person or by proxy, who must hold in aggregate at least fifty per

centum (50%) of the Units in circulation at the time of the meeting;

e) Save as otherwise provided specifically in this Deed or in the Guidelines and/or the Act, a

resolution proposed at the meeting shall be considered as having been duly passed if carried by

a majority consisting of more than half of the persons voting thereat upon a show of hands or if a

poll is demanded, by a majority consisting of more than half in number of votes given on such

poll.


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13. CONFLICT OF INTEREST The Manager and the Trustee and any delegate thereof will endeavor to avoid conflicts of interest arising or, if

conflicts arise they will ensure that neither the Unit Holder nor the Fund is disadvantaged by the transaction

concerned. Any transaction or investment carried out by or on behalf of the Fund should be executed at an

arm’s length transaction. The Manager and our related corporations will not act as principal in the sale and

purchase of investments and the Fund will not invest in companies related to the Manager.

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 invests in that particular share or stock, the

said committee member or director shall abstain from any decision making relating to investment in that share

or stock of the Fund.

Our employees who are directly involved in the investment management of the Fund or who have direct and

timely access to the daily trades done by the Fund Managers, are required to declare their dealing in the

securities.

To date, there has been no event of conflict of interest amongst us, employees, directors and Investment

Committee members. In the event a conflict or potential conflict of interest involving the Manager and

employees is identified, this will be evaluated by the Compliance Department and disclosed to the Chief

Executive Officer (CEO) for the next course of action. Conflict of interest situations involving the CEO, directors

and/or Investment Committee members will be disclosed to the Board of Directors for a decision on the next

course of action.


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14. TAXATION OF THE FUNDS

Our Ref : A31(T)/EMI

Date : 28 March 2016

The Board of Directors


Level 20, 1 Sentral

Jalan Rakyat


50470 Kuala Lumpur

Dear Sirs,

TAXATION OF THE UNIT TRUST FUNDS AND UNIT HOLDERS

This letter has been prepared for inclusion in the Master Prospectus dated 28 April 2016 in connection with

the offer of units in the following funds (“the Funds”):

1. PMB Dana Al-Aiman

2. PMB Dana Mutiara

3. PMB Dana Bestari

4. PMB Shariah Aggressive Fund

5. PMB Shariah Growth Fund

6. PMB Shariah Mid-Cap Fund

7. PMB Shariah Index Fund

8. PMB Shariah Premier Fund

9. PMB Shariah Dividend Fund

10. PMB Shariah TNB Employees Fund

11. PMB Shariah Tactical Fund

12. PMB Shariah Balanced Fund

13. PMB Shariah Cash Management Fund

1) TAXATION OF THE FUNDS

The Funds are treated as a unit trust for Malaysian tax purposes. The taxation of the Funds is subject to the

provisions of the Malaysian Income Tax Act 1967 (“the Act”). The applicable provisions are contained in

Section 61 (trusts generally) and section 63B (special deduction of expenses) of the Income Tax Act 1967 (“the

Act”).

The Funds will be regarded as resident for Malaysian tax purposes since the Trustees of the Funds are resident

in Malaysia under S 63(1) of the Act.

1.1) General Taxation

The income of the Funds in respect of investment income derived from or accruing in Malaysia such as

dividends, interest and profit (other than interest or profit which is exempt from tax) after deducting tax

allowable expenses under S33(1) and S63B of the Act is liable to income tax. The income tax rate applicable to

the Funds is 24% with effect from Year of Assessment (“YA”) 2016 (25% for Year of Assessment (YA) 2015).


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Gains on disposal of investments by the Funds will not be subject to Malaysian income tax. Such gains, however,

may be subject to real property gains tax under the Real Property Gains Tax Act, 1976 (see Item E below).

1.1.1) Exempt Income

A) Malaysian Sourced Dividends

With effective from 1 January 2008, Malaysia introduced the single tier system where dividends paid by

companies would not be taxable in the hands of the recipient. Dividends received from companies that are

under the single tier system would be exempted from tax and the expenses incurred on such dividends would

be disregarded. There will no longer be any tax refunds for single tier dividends received.

B) Malaysian Sourced Interest

(i) Interest from securities or bonds issued or guaranteed by the government of Malaysia;

(subparagraph 35(a) of Schedule 6 of the ITA 1967)

(ii) Interest from Debentures or Islamic securities, (other than convertible loan stock) approved by the

Securities Commission (subparagraph 35(b) of Schedule 6 of the ITA 1967) or Labuan Offshore

Financial Services Authority (LOFSA);

(iii) Interest from Bon Simpanan Malaysia issued by Bank Negara Malaysia;

(Subparagraph 35(d) of Schedule 6 of the ITA 1967)

(iv) Interest derived from Malaysia and paid or credited by banks or financial institutions licensed under the

Financial Services Act 2013 and Islamic Financial Services Act 2013;

(v) Interest or profit paid or credited by any development financial institution regulated under the

Development Financial Institutions Act 2002;

(vi) Interest derived from bonds (other than convertible loan stock paid or credited by any company listed

on the Malaysian Exchange of Securities Dealing and Automated Quotation Berhad (MESDAQ);

(vii) Interest received from bonds or securities issued by Pengurusan Danaharta Nasional Berhad;

(Income Tax (Exemption)(No.5) Order 2001 [P.U.(A)220/2001]

(viii) Interest from any savings certificates issued by the Government;

(paragraph 19 of Schedule 6 of the ITA 1967)

C) Discount

(Tax exemption is given on discount paid or credited to any unit trust in respect of investments as

specified in items B) (i) to (iii) above).

Please note that the interest income or discount exempted from tax in items B) and C) at the Fund level

will also be exempted from tax upon distribution to the Unit Holders.

D) Foreign Sourced Income

Income of the Funds in respect of income received from overseas investment is exempt from Malaysian Tax by

virtue of paragraph 28 of Schedule 6 of the Act and distribution of such income will be tax exempt in the hands

of the Unit holders. Such income from foreign investments may be subject to foreign taxes or withholding taxes.

Any foreign tax suffered on the income in respect of overseas investment is not tax refundable to the Fund.

The foreign income exempted from Malaysia tax at the Fund level will also be exempted from tax upon

distribution to the Unit Holders.


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E) Gains From The Realisation of Investments

Pursuant to Section 61(1)(b) of the Malaysian Income Tax Act 1967, gains from the realization of investments

will not be treated as income of the Funds and hence, are not subject to income tax. Such gains may be subject

to real property gains tax under the Real Property Gains Tax Act 1976 (“RPGT Act“), if the gains are derived

from the sale of chargeable assets, as defined in the RPGT Act.

With effect from 1 January 2014, any gains from disposal of real properties (“chargeable asset”) or shares in

real property companies “chargeable asset” would be subject to real property gains tax. According to Part II of

Schedule 5 of the Real Property Gains Tax Act 1976 the RPGT rates as follows:

RPGT RATES

Time of Disposal Individuals Companies Non-citizens

Within 3 years 30 % 30 % 30%

In the 4th year 20% 20% 30%

In the 5th year 15 % 15 % 30%

In the 6th year and subsequent years 0% 5% 5%

F) Tax Deductible Expenses

Tax deductible expenses are governed by Section 33(1) and Section 63B of the Malaysian Income Tax Act 1967.

Section 33(1) generally provides for a deduction of expenses “wholly and exclusively” incurred in the

production of gross income. Whilst, Section 63B allows the Funds deduction for a portion of other

expenses(referred to as “permitted expenses”) not directly related to the production of income. The special

deduction is calculated based on the following formula:

A X B

4C

Where:

A is the total of the permitted expenses incurred for that basis period.“Permitted expenses” means expenses

incurred by the unit trust in respect of manager’s remuneration, maintenance of register of unit holders,

share registration expenses, secretarial, audit, accounting fees, telephone charges, printing and stationery

cost and postage, which are not deductible under Section 33(1),

B is gross income consisting of dividend, interest and rent that are chargeable to tax for that basis period,

and

C is the aggregate of the gross income consisting of dividend, interest (whether exempt or not), rent and

gains made from the realization of investments (whether chargeable to tax or not) for that basis period,

Provided that the amount of deduction to be made based on the above prescribed formula shall not be less

than 10% of the total permitted expenses incurred for that basis period.

G) Goods and Services Tax (GST)

GST was implemented in Malaysia under the Goods and Service Tax Act 2014 effective from 1 April 2015 at a

standard rate of 6%. It replaces the previous Sales Tax Act 1972 and Service Tax Act 1975 which were

abolished on that date.

Based on the Guide on Fund Management issued by the Royal Malaysian Customs Department on 27 October

2013, the investment activities of a unit trust fund including the buying and selling of securities are exempt


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supplies. Therefore, a unit trust fund makes wholly exempt supplies and is not required to be registered for

GST purposes. There is no requirement for the Fund to make any application for exemption from registration.

However, certain expenses incurred by the Fund such as fund manager’s fee, trustee fees and professional fees

will be subject to GST at the standard rate if the service providers are registered persons. If the Fund is making

exempt supplies, any input tax incurred by the Fund for the aforementioned expenses are not claimable.

2) Taxation of Unit Trust Holders

For Malaysian income tax purposes, unit holders will be taxed on their share of the distributions received from

the Funds.

The income of unit holders from their investment in the Funds broadly falls under the following categories : -

1. Taxable Distributions; and

2. Non-Taxable And Exempt Distributions.

3. Undistributed Income

In addition, unit holders may also realize gain from the sale of units.

The tax implications of each of the above categories are explained below: -

1. Taxable Distributions

Unit holders will be taxed on an amount equivalent to their share of the total taxable income of the Funds to

the extent of the distributions received from the Funds.

The income distributions received from the Fundswill have to be grossed up to take into account the underlying

tax paid by the Funds and the unit holders will be taxed on the grossed up amount.

Such distributions carry a tax credit in respect of the tax paid by the Funds. Unit holders will be entitled to

utilize the tax credit against any Malaysian income tax payable by the unit holder on the income distribution

received by them, the excess is refundable to the unit holder.

Please refer to the paragraph below for the income tax rates applicable to the grossed up distributions.

2. Non-Taxable And Exempt Distributions

The distribution of single tier dividends, other than tax exempt income and gains from the realization of

investments earned by the Fund will not be subject to Malaysian income tax in the hands of the Unit holders in

Malaysia. Distribution of foreign income will also be exempted in the hands of the Unit holders.

The following types of income is tax exempt in the hands of the unit holders : -

a) certain interest income and foreign sourced income is tax exempt at the unit trust level. Unit holders

who receive a distribution of such tax exempt income will not be subject to income tax.

b) disposal of investments by the unit trust fund is not subject to tax. The distribution of gains from such

disposals is tax exempt in the hands of the unit holders.

c) any gains realized by unit holders (other than dealers in securities, insurance companies or financial

institutions) on the sale, transfer or redemption of the units trust are treated as capital gains and will

not be subject to income tax.

d) bonus issues of units which either : -

* represents a division of the unit holder’s existing investment into a larger number of units, or

* the distribution of unrealized gains as additional units.

However, if the bonus issue of units represents distribution of income derived from investment of the

unit trust, these units will be subject to tax.


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e) Unit holders electing to receive their income distribution by way of investment in the form of the

purchase of new units will be regarded as having purchased the new units out of their income

distribution after tax. Unit splits issued by the Funds are not taxable in the hands of Unit holders.

3. Undistributed Income

Unit holders are not taxed on the undistributed income or gains of the Fund.

• Filing of Income Tax Return Forms

Unit holders have to declare their taxable distributions from unit trusts together with their income

from other sources in the relevant Income Tax Return Forms.

• Rates of Tax

The Malaysian income tax chargeable on the unit holders would depend on their tax residence status

and whether they are individuals, corporations, non-corporations or trust bodies. The relevant

income tax rates as follows: -

TYPES OF UNIT HOLDERS MALAYSIAN INCOME TAX RATES

RESIDENT OR NON RESIDENT

• Non-resident individual & non-corporate Unit

holders (such as co-operatives, associations

and societies)

• 28% (effective from Year of Assessment

2016)

• Resident individuals and others (such as

associations and societies)

• scale rate (From 0% to 28% with effect

from Year of Assessment 2016)

• Cooperative societies • scale rate (From 0% to 24% with effect

from Year of Assessment 2016)

• Companies (non SMI companies) and non-

resident companies

• 25% (prevailing rate) - Appendix 1 (will

be reduced to 24% effective from Year of

Assessment 2016)

• SMI Companies and Limited Liability

Partnership (LLP)

• On first RM 500,000 chargeable income at

flat rate of 19%

• On subsequent amount of the chargeable

income at flat rate of 24%

(With effective from Year of Assessment

2016)

(Remarks : Non-resident unit holders may be subject to tax in their respective countries depending on the

provisions of the tax legislation in the respective countries and any existing double taxation arrangements with

Malaysia)


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We hereby confirm that, as at the date of this letter, the statements made in this report correctly reflect our

understanding of the tax position under current Malaysian tax legislation. All prospective investors should not

treat the contents of this letter as advice relating to taxation matters and are recommended to obtain

independent advice on the tax issues associated with their investments in the Funds.

Yours faithfully,

AHMAD ABDULLAH & GOH

GOH KENG JUAY

Partner


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Appendix 1

SMI company means a company incorporated in Malaysia and has paid up capital in respect of ordinary shares

of RM 2.5 million and below at the beginning of basis period for a Year of Assessment (YA), resident in Malaysia

and not within a group where the holding or other subsidiary company is:

a) more than 50% of the paid up capital in respect of an ordinary shares of the company is directly or

indirectly owned by a related company;

b) more than 50% of the paid up capital in respect of ordinary shares of the related company is directly or

indirectly owned by the first mentioned company; or

c) more than 50% of the paid up capital in respect of ordinary shares of the first mentioned company and

the related company is directly or indirectly owned by other company.

“Related company” is defined as a company which has a paid up capital exceeding RM2.5 million in respect of

ordinary shares at the beginning of the basis period of the year of assessment.


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15. ADDITIONAL INFORMATION

15.1 UPDATES ON THE FUNDS

You may access the daily Fund prices, Fund’s monthly updates and review our interim and annual reports via

our website www.pmbinvestment.com.my.

15.2 PRE-INVESTMENT FORM (PIF)

The purpose of the PIF is to ensure that the investor are sufficiently informed on investments in unit trust

funds and in particular, understand the unit trust fund in which you invest in. You are required to complete the

PIF prior to account opening if you are a first time investor. If you invest in several new Funds simultaneously,

a PIF must be completed for each Fund.

15.3 SUITABILITY ASSESSMENT

The Suitability Assessment should be conducted on an investor who wishes to invest in a new unlisted capital

market product. The Suitability Assessment Form should be completed prior to the account opening. A

suitability assessment refers to an exercise carried out by the Manager to gather necessary information from

the investor before matching a particular Fund with the needs of an investor.

15.4 INVESTOR RELATION

You may communicate with us by:-

i) Telephone: (03) 2785 9900 (Investor Relation Careline) / (03) 2785 9800 (General Line)

ii) Fax: (03) 2785 9901

iii) E-mail: [email protected]

iv) Walk-in:

Mondays - Thursdays Fridays Saturdays-Sundays/Public Holidays

8.45 a.m. – 5.15 p.m. 8.45 a.m. – 12.30 p.m.

2.30 p.m. – 5.15 p.m.

Closed

v) Write in –


Level 20, 1 Sentral


50470 Kuala Lumpur

15.5 COMPLAINTS

Should you wish to complain, you may lodge your complaint by writing to:

Investor Relation Unit


Level 20, 1 Sentral


50470 Kuala Lumpur

Please state the date, time, place of occurrence, person involved and nature of your complaint. You may also

lodge your complaint through telephone calls by contacting the department.


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15.6 SECURITIES INDUSTRY DISPUTE RESOLUTION CENTER (SIDREC)

SIDREC is an independent body corporate, approved under Capital Markets and Services (Dispute Resolution)

Regulations 2010, established to resolve monetary disputes between investors and capital market

intermediaries registered as its members, such as stockbrokers, futures brokers, unit trust management

companies, and fund managers. If an investor has an unresolved claim with a capital market intermediary, he

or she may file a claim with SIDREC, either –

a) In person

Mondays - Thursdays Fridays Saturdays-Sundays/Public

Holidays

9.00 a.m. – 1.00 p.m.

2.00 p.m. – 5.00 p.m.

9.00 a.m. – 12.30 p.m.

2.30 p.m. – 5.00 p.m.

Closed

b) Write in –

Securities Industry Dispute Resolution Center, Unit A-9-1, Level 9, Tower A, Menara UOA Bangsar, No. 5,

Jalan Bangsar Utama 1, 59000 Kuala Lumpur

c) Fax: (03) 2282 3855

d) E-mail: [email protected]

For further enquiry, you may reach SIDREC via, telephone at (03) 2282 2280 or its website at

www.sidrec.com.my.

15.7 ANTI-MONEY LAUNDERING AND ANTI-TERRORISM FINANCING

(AML/CFT) POLICIES

• General Policy

We have established an Anti-Money Laundering and Anti-Terrorism Financing (AMLCFT) Policies and

Procedures as required by the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of

Unlawful Activities Act (AMLATFA) 2001. As such we will actively prevent and take measures to guard

against being used as a medium for money laundering and/or terrorism financing activities and any

other activity that facilitates money laundering and/or terrorism financing.

• Investor’s Identification and Verification

Pursuant to the AMLATFA, we have put in place procedures for identification and verification of

investors. Hence, we require you to provide us with your name, date of birth, national registration card

number, residential and business address, (and mailing address if different), name of beneficial owner,

address of beneficial owner, national registration card number of beneficial owner, date of birth of

beneficial owner or other official identification when you open or re-open an account.

Additional information from you may be required on a case by case basis in certain situations

throughout your investment with us in any of the Fund. Application without such information may not

be accepted and the application amount shall be returned to you.

• Suspicious Transaction Reporting

We are obliged to report to the Financial Intelligence and Enforcement Department of Bank Negara

Malaysia on any transaction which may raise our suspicion that the source of the investment capital is

originated or received from money laundering and terrorism activities, or proceeds from illegal

activities.


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15.8 PRIVACY NOTICE UNDER PERSONAL DATA PROTECTION ACT 2010

Pursuant to the PDPA gazetted on 15th November 2013, we have put in place procedures in dealing with your

personal data being collected and retained by us. Please read our ‘Privacy Notice’ on our website

pmbinvestment.com.my or request a copy of the Privacy Notice from our office.

15.9 GOODS AND SERVICES TAX (GST)

With effect from 1 April 2015, GST has been implemented to replace the current sales tax and service tax

regime currently at the rate of 6%.

Based on the Guide on Fund Management issued by Royal Malaysian Customs Department on 27th October

2013 (“Guide on Fund Management”), a unit trust fund is making exempt supplies. Any contribution made to

the Fund by its Unit Holders for the issuance of units in the Fund should be regarded as an exempt supply of

services and thus, should not be subject to GST.

The investment made by the Fund to maximize its returns is generally proposed to be treated as exempt supply

and not subject to GST. Any investment activity such as buying or selling of securities should generally be

exempted from GST. However any fee-based charges by the Fund should be a taxable supply subject to GST at

the standard rate of 6%, provided the Fund exceeds the GST registration threshold of RM500,000 per annum

of taxable supplies. Any GST incurred by the Fund on the manager’s fees, trustee fees and other supplies

received by the Fund are not claimable as input tax credit for GST purposes if the Fund is not GST registered

or even if GST registered, to the extent the supplies by the Fund are exempted from GST.

Manager’s GST Registration No.: 000923279360

15.10 FOREIGN ACCOUNT TAX COMPLIANCE ACT (FATCA)

FATCA is a United States of America (US) statute that, among others, requires foreign financial institutions,

including us, to report to the Inland Revenue Service (IRS) of the US on clients who are US persons. US persons

refers to a citizen of US; an individual lawfully admitted for permanent residence of the US; an unincorporated

association with a substantial number of members who are citizens of the US or are individuals lawfully

admitted for permanent residence of the US; or a corporation incorporated in the US.

15.11 ZAKAT

The Funds do not allocate payment for zakat on capital gains and income distributions, on behalf of Muslim

individuals and Muslim legal entities that invest in the Funds since by doing so, would not fulfill their zakat

obligations. Thus, Unit Holders are required and advised to make their own arrangements in respect of the

payments of zakat.

Muslim individuals and legal entities that are investors of the Funds are required to pay zakat on trading and

investment income. To determine the amount of zakat payable, these investors need to add the principal

invested in the Fund(s) plus the profits earned on these investments multiplied by 2.5%.

15.12 AUDITORS OF THE FUND

Messrs. Ahmad Abdullah & Goh has been appointed as the auditors for the Funds. The Auditors may retire

upon giving three (3) month’s written notice to the Trustee provided any such notice must always expire one

(1) month prior to or two (2) months following the end of the current accrual period, or may be removed at

any time by the Trustee or by a resolution of Unit Holders holding not less than 2/3 of the units in issue. Any

vacancy in the office of the Auditors shall be filled by a qualified person appointed by the Trustee.


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15.13 PLEDGING OF UNITS AS COLLATERAL

Units held by the Unit Holder may be pledged as collateral for loans to enhance your financial leverage.

However, this facility is only available subject to the approval of the banks or other financial institutions.

15.14 BORROWING TO PURCHASE UNITS

Unit Holder has the option to purchase the Units through a loan scheme. However, if such facility is utilised the

margin of finance shall not exceed 67% of the amount invested (this limit is not applicable for purchase of Units

via credit/charge card). Any redemption of Units is subject to the related financial institution’s approval.

Investors are required to understand fully the risk disclosure statement on the loan scheme before signing off

on the statement provided. The risk disclosure statement is incorporated in the application forms referred to

and accompanied in the Master Prospectus.

15.15 PERIOD OF THE FUND

The commencement dates of the Funds are the dates of launching or the dates of the first Prospectus issued by

the Manager. The Fund may be terminated by the Trustee who will summon a meeting of Unit Holders due to

circumstances affecting the Manager. Otherwise the Fund may continue in operation or in existence if it

appears to be in the interest of the Unit Holders for such periods as agreed by the Trustee and the Manager.

15.16 LIST OF DISTRIBUTION CHANNELS

Other than the Head Office in Kuala Lumpur, Unit Holder may obtain the Master Prospectus and forms and

purchase the units of our Funds at our regional offices as follows:

Regional Offices

Central Region

Wisma PMB, No. 1A, Jalan Lumut, 50400 Kuala Lumpur

Tel: (03) 4045 4000 Fax: (03) 4044 3800

Email: [email protected]

Manager: Suhaila binti Malzuki

Northern Region

No. 46, 1/F Jalan Todak 2, Pusat Bandar Seberang Jaya, 13700 Perai, Pulau Pinang

Tel: (04) 390 9036 Fax: (04) 390 9041


Manager: Ahmad Shahril bin Md Yusof

Eastern Region

Lot D103, Tingkat 1, Mahkota Square, Jalan Mahkota, 25000 Kuantan, Pahang Darul Makmur

Tel: (09) 515 8545 Fax: (09) 513 4545


Manager: Mohd Nazri bin Kadir

Southern Region

No.17-01, Jalan Molek 1/29, Taman Molek, 81100 Johor Bahru, Johor Darul Takzim

Tel: (07) 352 2120 Fax: (07) 351 2120


Manager: Anuar bin Idrus


165


Sarawak

No. 59, Tingkat 1, Jalan Tun Jugah, 93350 Kuching, Sarawak

Tel: (082) 464 402 Fax: (082) 464 404


Manager: John Nyaliaw

Sabah

Lot 2-3-19C, Tingkat 2 Plaza Wawasan, Lorong Wawasan, 88000 Kota Kinabalu, Sabah

Tel: (088) 244 129 Fax: (088) 244 419


Manager: Yong Yin Kong

Institutional Unit Trust Agents

Phillip Mutual Berhad

B-2-7 Megan Avenue II, 12 Jalan Yap Kwan Seng, 50450 Kuala Lumpur

Tel: (03) 2783 0300 Fax: (03) 2166 6417

Website: www.phillipmutual.com

iFast Capital Sdn Bhd

Level 28 Menara Standard Chartered, No 30 Jalan Sultan Ismail, 50250 Kuala Lumpur

Tel: (03) 2149 0660 Fax: (03) 2143 1218

Website: www.ifastcapital.com.my

Apex Investment Services Berhad

Suite 10-A3, 10A Floor, Grand Season Avenue, 72 Jalan Pahang, 53000 Kuala Lumpur

Tel : (03) 2693 2789 Fax : (03) 2692 6546

Website: www.apexequity.com.my

Financial Institutions for Autodebit

a. Bank Simpanan Nasional

b. CIMB Bank Berhad

c. Malayan Banking Berhad/Maybank Islamic Berhad

d. RHB Bank Berhad/RHB Islamic Bank Berhad


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16. STATEMENT OF CONSENT

The auditors, bankers, company secretary, solicitors, tax adviser, Trustees, Shariah adviser for the Manager

and Shariah Adviser for the Funds have given their consent in writing before the issuance of this Master

Prospectus to act in that capacity in relation to this Master Prospectus and those consents have been lodged

with the Securities Commission Malaysia and have not subsequently been withdrawn.


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17. DOCUMENTS AVAILABLE FOR INSPECTION

For a period of not less than twelve (12) months from the date of this Master Prospectus, Unit Holders may

inspect the following documents or copies thereof during normal business hours at the Manager’s and

Trustee’s business office, without charge:-

a) The Deed of each Funds;

b) Each material contract or document referred to in this Master Prospectus;

c) The latest annual and interim reports of the Fund;

d) All reports, letters or other documents, valuations and statements by any expert, any part of which is

extracted or referred to in this Master Prospectus;

e) Latest audited financial statements of the management company and that of the Funds for the current

financial year (where applicable);

f) Audited financial statements of the management company and that of the Funds for the last 3 financial

years preceding the date of the Master Prospectus;

g) Any consent given by experts or persons named in this Master Prospectus; and

h) Writ and relevant cause papers for all current material litigation and arbitration disclosed in the Master

Prospectus.


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APPENDICES