Stable investments that stand the test of ... - CIMB-Principal Prospectus (Shariah... · MASTER PROSPECTUS (SHARIAH-COMPLIANT FUNDS) Stable investments that stand the test of time

MASTER PROSPECTUS (SHARIAH-COMPLIANT FUNDS)

Stable investments that stand the test of time

Enquiries:Customer Care Centre (603) 7718 3100Email [email protected]

CIMB-Principal Asset Management Berhad (304078-K)

Manager : CIMB-Principal Asset Management Berhad (304078-K)

Trustees : AmanahRaya Trustees Berhad (766894-T) Deutsche Trustees Malaysia Berhad (763590-H)

Mayban Trustees Berhad (5004-P) AmTrustee Berhad (163032-V)

HSBC (Malaysia) Trustee Berhad (1281-T) Universal Trustee (Malaysia) Berhad (17540-D)

This Master Prospectus (Shariah-Compliant Funds) is dated 30 June 2011 and expires on 29 June 2012 and incorporates the following 20 Funds namely:

Equity Funds : CIMB Islamic DALI Equity Growth Fund (constituted on 7 May 1998), CIMB Islamic DALI Equity Fund (constituted on 30 April 2003), CIMB Islamic DALI Equity Theme Fund (constituted on 28 February 2008), CIMB Islamic Equity Fund (constituted on 8 October 2004), CIMB Islamic Equity Aggressive Fund (constituted on 15 June 1995) and CIMB Islamic Small Cap Fund (constituted on 30 April 2003).

Mixed Asset Funds : CIMB Islamic Balanced Fund (constituted on 8 March 2001) and CIMB Islamic Balanced Growth Fund (constituted on 26 May 2003).

Fixed Income & Money Market Funds

: CIMB Islamic Enhanced Sukuk Fund (constituted on 23 February 2005), CIMB Islamic Sukuk Fund (constituted on 8 October 2004), CIMB Islamic Money Market Fund (constituted on 17 March 2008) and CIMB Islamic Deposit Fund (constituted on 9 September 2009).

Regional & Global Funds

: CIMB Islamic Asia Pacific Equity Fund (constituted on 2 June 2006), CIMB Islamic Greater China Equity Fund (constituted on 2 June 2009), CIMB Islamic Global Emerging Markets Equity Fund (constituted on 2 July 2008), CIMB Islamic Global Equity Fund (constituted on 8 January 2008), CIMB Islamic Global Commodities Equity Fund (constituted on 6 January 2010) and CIMB Islamic Kausar Lifecycle Funds (ILF2017, ILF2022 & ILF2027) (constituted on 12 July 2007).

DISClAIMER : INVESTORS ARE ADVISED TO READ AND UNDERSTAND THE CONTENTS OF THE MASTER PROSPECTUS. IF IN DOUBT, PLEASE CONSULT A PROFESSIONAL ADVISER. FOR INFORMATION CONCERNING CERTAIN RISK FACTORS WHICH SHOULD BE CONSIDERED BY PROSPECTIVE INVESTORS, SEE “RISK FACTORS” COMMENCING ON PAGE 31.

Preface Dear Valued Investor, Thank you for considering an investment with CIMB-Principal Asset Management Berhad (“CIMB-Principal”). We are proud to offer our extensive suite of Shariah-compliant Funds which provide investors with choices to achieve their long-term financial goals. We have a comprehensive selection of regional and global funds including various asset classes such as equity, mixed asset, money market and fixed income. With the positive development in Islamic fund management, investments in Shariah-compliant assets have proven that over the long-term, it is completely on par with the conventional. In any case, investors should continuously take interest in their investments and seek all the information they need to know about their investments, know their rights, consult their financial advisers, and know where to check, verify and clarify their doubts. This Master Prospectus (Shariah-compliant Funds) has full and accurate disclosure of material information to help investors in making informed decisions regarding their investments. Please also note that there are risks involved in investing in these Funds. There are general risks which are common to all unit trust funds and specific risks which are associated with the investment portfolio of each Fund. For further details, please refer to the “Risk Factors” chapter of this Master Prospectus (Shariah-compliant Funds). Each Fund imposes an Application Fee and, in certain Funds, a Withdrawal Fee, calculated based on the NAV per unit of that Fund at the time of investing. A Management Fee and a Trustee Fee will also be chargeable to the Funds. Take your time to refer to the chapter “Key Data” in this Master Prospectus (Shariah-compliant Funds). This section answers any questions you may have on our family of Shariah-compliant Funds such as their investment objectives, investment policy and principal investment strategies, investor profiles, risks parameters as well as fees and charges. Reading this Master Prospectus (Shariah-compliant Funds) is your first step towards deciding on the fund that is well-suited for your personal financial goals and risk appetite. To find out more, speak to our helpful personnel at the Customer Care Centre at (03) 7718 3100. Alternatively, you may contact our Approved Distributors and Unit Trust Consultants detailed in the chapter “Distributors of the Funds” in this Master Prospectus (Shariah-compliant Funds). Let us help you grow and move your wealth towards your investment goals. Yours faithfully, for CIMB-PRINCIPAL ASSET MANAGEMENT BERHAD

Campbell Tupling Chief Executive

About this document This is a Master Prospectus (Shariah-compliant Funds) that introduces you to CIMB-Principal Asset Management Berhad (“CIMB-Principal”) and its diverse range of Shariah-compliant Funds comprising equity funds, mixed asset funds, fixed income and money market funds, as well as regional and global funds. This Master Prospectus (Shariah-compliant Funds) outlines in general the information you need to know to make an informed decision as to which Fund best suits your financial needs. If you have any questions about the information in this Master Prospectus (Shariah-compliant Funds) or would like to know more about investing in the CIMB-Principal family of unit trust funds, please call CIMB-Principal Customer Care Centre at (03) 7718 3100 between 8:30 a.m. and 5:30 p.m. (Malaysian time), Mondays to Fridays (except on Selangor public holidays). If you wish to invest after 29 June 2012, please obtain a Master Prospectus (Shariah-compliant Funds) and application form current at that time. Unless otherwise indicated, any reference in this Master Prospectus (Shariah-compliant Funds) to any legislation, statute or statutory provision is a reference to that legislation, statute or statutory provision for the time being, as amended or re-enacted, and to any repealed legislation, statute or statutory provision which is re-enacted (with or without modification). Any reference to a time or day in this Master Prospectus (Shariah-compliant Funds) shall be a reference to that time or day in Malaysia, unless otherwise stated. Please note that all references to currency amounts and unit prices in this Master Prospectus (Shariah-compliant Funds) are in Ringgit Malaysia unless otherwise indicated.

Master Prospectus (Shariah-compliant Funds) details Issue No. 4 Prospectus Date 30 June 2011 Expiry Date 29 June 2012

Responsibility Statements This Master Prospectus (Shariah-compliant Funds) has been reviewed and approved by the directors of CIMB-Principal and they collectively and individually accept full responsibility for the accuracy of the information. Having made all reasonable enquiries, they confirm to the best of their knowledge and belief, there are no false or misleading statements, or omission of other facts which would make any statement in this Master Prospectus (Shariah-compliant Funds) false or misleading.

Statements of Disclaimer The Securities Commission Malaysia has approved the issue of, offer for subscription or purchase, or issue of an invitation to subscribe for or purchase units of the Funds and a copy of this Master Prospectus (Shariah-compliant Funds) has been registered with the Securities Commission Malaysia. The approval, and registration of this Master Prospectus (Shariah-compliant Funds), should not be taken to indicate that the Securities Commission Malaysia recommends the Funds or assumes responsibility for the correctness of any statement made or opinion or report expressed in this Master Prospectus (Shariah-compliant Funds). The Securities Commission Malaysia is not liable for any non-disclosure on the part of CIMB-Principal who is responsible for the Funds and takes no responsibility for the contents in this Master Prospectus (Shariah-compliant Funds). The Securities Commission Malaysia makes no representation on the accuracy or completeness of this Master Prospectus (Shariah-compliant Funds), 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. IN CONSIDERING THE INVESTMENT, INVESTORS WHO ARE IN DOUBT ON THE ACTION TO BE TAKEN SHOULD CONSULT PROFESSIONAL ADVISERS IMMEDIATELY.

Additional Statements No units will be issued or sold based on this Master Prospectus (Shariah-compliant Funds) later than one (1) year after the date of this Master Prospectus (Shariah-compliant Funds). Investors are advised to note that recourse for false or misleading statements or acts made in connection with this Master Prospectus (Shariah-compliant Funds) is directly available through Sections 248, 249 and 357 of the Capital Markets and Services Act 2007. CIMB Islamic DALI Equity Growth Fund, CIMB Islamic DALI Equity Fund, CIMB Islamic DALI Equity Theme Fund, CIMB Islamic Equity Fund, CIMB Islamic Equity Aggressive Fund, CIMB Islamic Small Cap Fund, CIMB Islamic Balanced Fund, CIMB Islamic Balanced Growth Fund, CIMB Islamic Enhanced Sukuk Fund, CIMB Islamic Money Market Fund, CIMB Islamic Sukuk Fund, CIMB Islamic Asia Pacific Equity Fund, CIMB Islamic Global Emerging Markets Equity Fund, CIMB Islamic Global Equity Fund, CIMB Islamic Kausar Lifecycle Funds (ILF2017, ILF2022 & ILF2027), CIMB Islamic Greater China Equity Fund, CIMB Islamic Deposit Fund and CIMB Islamic Global Commodities Equity Fund have been certified as being Shariah-compliant by the Shariah Adviser appointed for these Funds.

Table of Contents

Definitions ..........................................................................1 Corporate Directory ...........................................................4 Key Data .............................................................................7 Risk Factors ..................................................................... 31

General Risks of Investing in Unit Trust Funds ............. 31 Specific risks associated with the investment portfolio of the Funds...................................................................... 32 SECTION 1: EQUITY FUNDS ...................................... 32 SECTION 2: MIXED ASSET FUNDS............................ 34 SECTION 3: FIXED INCOME & MONEY MARKET FUNDS ........................................................................ 36 SECTION 4: REGIONAL & GLOBAL FUNDS............... 37

Funds’ Detailed Information............................................ 43 SECTION 1: EQUITY FUNDS ...................................... 44 1.1 CIMB Islamic DALI Equity Growth Fund.......... 44 1.2 CIMB Islamic DALI Equity Fund ...................... 45 1.3 CIMB Islamic DALI Equity Theme Fund .......... 46 1.4 CIMB Islamic Equity Fund ............................... 48 1.5 CIMB Islamic Equity Aggressive Fund............. 49 1.6 CIMB Islamic Small Cap Fund......................... 50 SECTION 2: MIXED ASSET FUNDS............................ 51 2.1 CIMB Islamic Balanced Fund .......................... 51 2.2 CIMB Islamic Balanced Growth Fund.............. 53 SECTION 3: FIXED INCOME & MONEY MARKET FUNDS ........................................................................ 54 3.1 CIMB Islamic Enhanced Sukuk Fund .............. 54 3.2 CIMB Islamic Sukuk Fund ............................... 56 3.3 CIMB Islamic Money Market Fund .................. 57 3.4 CIMB Islamic Deposit Fund............................. 58 SECTION 4: REGIONAL & GLOBAL FUNDS............... 58 4.1 CIMB Islamic Asia Pacific Equity Fund............ 59 4.2 CIMB Islamic Greater China Equity Fund........ 60 4.3 CIMB Islamic Global Emerging Markets Equity Fund ........................................................................ 61 4.4 CIMB Islamic Global Equity Fund.................... 63 4.5 CIMB Islamic Global Commodities Equity Fund .. ........................................................................ 65 4.6 CIMB Islamic Kausar Lifecycle Funds ............. 66 Foreign market admission requirements ....................... 69 Authorised investments................................................. 70 Investment restrictions and limits .................................. 75 Valuation of authorized investments ............................. 77 Borrowings/Financing ................................................... 77 Securities lending.......................................................... 77 Shariah investment guidelines ...................................... 78

Funds’ Performance ........................................................ 81 Average Total Returns .................................................. 81 Annual Total Returns .................................................... 82 Fund performance against benchmark.......................... 83 Distributions .................................................................. 87 Portfolio Turnover Ratio (PTR)...................................... 89 Asset allocation............................................................. 92

Historical Highlights of the Funds.................................. 95 Financial statement of the Funds .................................. 95 Total Annual Expenses ............................................... 102 Management Expense Ratio....................................... 103

Fees, Charges and Expenses........................................ 104 Charges ...................................................................... 104 Fees and Expenses .................................................... 105 Autodebit/Standing Instruction .................................... 108 Rebates and soft commissions ................................... 108

Transaction Information................................................ 109 Unit pricing.................................................................. 109 Transaction Details ..................................................... 111

Investing ................................................................ 111 Withdrawals ........................................................... 113 Minimum balance................................................... 114 Cooling-off period................................................... 114 Switching ............................................................... 115 Transfer facility....................................................... 116

Distributions of the Funds ........................................... 117 Unclaimed monies ...................................................... 118

The Manager ...................................................................119 About CIMB-Principal Asset Management Berhad ......119 Summary of the financial position of the Company......119 Key Personnel .............................................................120 The Investment Committee .........................................121 The Board of Directors ................................................123 Key members of the Investment Team........................125 Material litigation and arbitration..................................126 Fund Administrator for IBF, DALI2 and IEF .................126

The Investment Managers .............................................127 CIMB-Principal Asset Management (S) Pte Ltd...........127 Principal Global Investors, LLC ...................................129 Schroder Investment Management (Singapore) Ltd ....131

Shariah Adviser of the Funds........................................132 CIMB Islamic Bank Berhad..........................................132

The Trustees...................................................................135 AmanahRaya Trustees Berhad ...................................135 AmTrustee Berhad ......................................................136 Deutsche Trustees Malaysia Berhad...........................137 HSBC (Malaysia) Trustee Berhad ...............................139 Mayban Trustees Berhad ............................................141 Universal Trustee (Malaysia) Berhad ..........................142 What are the responsibilities of the Trustees?.............142 Trustees’ statement of responsibility ...........................142 Exemptions or variations .............................................143 Material Litigation and Arbitration ................................143

Salient Terms of Deeds..................................................145 Rights of Unit holders ..................................................145 Liabilities and limitation of Unit holders........................145 Maximum fees and charges permitted by the Deeds...145 Expenses permitted by the Deeds...............................148 Retirement, removal or replacement of the Manager...149 Power of the Manager to remove/replace the Trustees .... ......................................................................149 Retirement or removal or replacement of the Trustees149 Power of the Trustees to remove, retire or replace the Manager ......................................................................150 Termination of the Fund ..............................................150 Meetings of Unit holders..............................................150

Approvals and Conditions.............................................152 Related-Party Transactions/Conflict of Interest...........153

Potential conflicts of interests and related party transactions.................................................................153 Interests in the Funds..................................................153 Employees’ securities dealings....................................153

Taxation Report ..............................................................154 Additional Information ...................................................159

Investors services........................................................159 Anti-money laundering policies and procedures ..........159 Distribution channels where units can be purchased or redeemed ....................................................................160

Consent...........................................................................161 Documents available for inspection .............................162 Distributors of the Funds...............................................163 Appendix I - Unit Trust Loan Financing Risk Disclosure Statement........................................................................165

1

Definitions Except where the context otherwise requires, the following definitions shall apply throughout this Master Prospectus (Shariah-compliant Funds): American Depositary Receipts (ADRs)

- An American Depositary Receipt is a negotiable security that trades in the United States but represents the underlying securities (generally equity shares) of a non-U.S. company. ADRs which carry prices in USD are created when a broker purchases a non-U.S. company's shares on its home stock market and delivers the shares to the depositary's local custodian bank, and then instructs the depositary bank to issue ADRs. In addition, ADRs may also be purchased in the U.S. secondary trading market. They may trade freely, just like any other security, either on an exchange or in the over-the-counter market. ADRs were introduced as a result of the complexities involved in buying shares in foreign countries and the difficulties associated with trading at different prices and currency values.

AmTB - AmTrustee Berhad (163032-V).

Application Fee - Preliminary charge on each investment.

Approved Distributors - Any relevant persons and bodies, as may be approved by the SC (if necessary) or any other regulatory body and appointed by CIMB-Principal from time to time, who are responsible for selling units of the Funds.

ART - AmanahRaya Trustees Berhad (766894-T).

Auditors - An approved company auditor independent of both the Trustee and the Manager, and appointed by the Trustee of the Fund.

BNM - Bank Negara Malaysia.

Bursa Malaysia - Bursa Malaysia Securities Berhad (635998-W).

Business Day - Mondays to Fridays when Bursa Malaysia is open for trading, and/or banks in Kuala Lumpur and/or Selangor are open for business.

Note for CIMB Islamic Asia Pacific Equity Fund, CIMB Islamic Kausar Lifecycle Funds, CIMB Islamic Global Equity Fund, CIMB Islamic Global Emerging Markets Equity Fund, CIMB Islamic Greater China Equity Fund and CIMB Islamic Global Commodities Equity Fund:

The Manager may declare certain Business Days a non-Business Day although Bursa Malaysia and/or banks are open for business, if the Fund’s investment in foreign markets which are closed for business is at least 50% of the Fund’s NAV.

CIMB - CIMB Investment Bank Berhad (18417-M).

CIMB Group - CIMB Group Sdn. Bhd. (706803-D).

CIMB Group Holdings - CIMB Group Holdings Berhad (50841-W).

CIMB Islamic or the Shariah Adviser of the Funds

- CIMB Islamic Bank Berhad (671380-H).

CIMB-Principal or the Manager - CIMB-Principal Asset Management Berhad (304078K).

CIMB-Principal (S) - CIMB-Principal Asset Management (S) Pte Ltd (200607208K).

CIS - Collective Investment Scheme.

CMSA - Capital Markets and Services Act 2007.

CWA - CIMB Wealth Advisors Berhad (209627-H).

Deeds - The Master and any Supplemental Master Deed in respect of the Funds made between the Manager, the Trustee and the Unit holders of the Funds, agreeing to be bound by the provisions of the respective Deeds.

DTMB - Deutsche Trustees Malaysia Berhad (763590-H).

Eligible Market - A market which is regulated by a regulatory authority, operates regularly, is open to the public and has adequate liquidity for the purposes of the Fund.

Exchange-Traded Fund or ETF - An authorised collective investment scheme listed on the exchange.

FBM EMAS Shariah Index - FTSE Bursa Malaysia EMAS Shariah Index.

Fitch - Fitch Ratings.

FTSE - An independent company owned by The Financial Times and the London Stock Exchange. The company’s sole business is the creation and management of indices and associated data services, on an international scale. (For more information, please refer to http://www.ftse.com/About_Us/index.jsp)

Fund/Funds - EQUITY FUNDS CIMB Islamic DALI Equity Growth Fund CIMB Islamic DALI Equity Fund CIMB Islamic DALI Equity Theme Fund CIMB Islamic Equity Fund CIMB Islamic Equity Aggressive Fund CIMB Islamic Small Cap Fund

DALI DALI2 DALI3 IEF IEAF ISCF

2

MIXED ASSET FUNDS CIMB Islamic Balanced Fund CIMB Islamic Balanced Growth Fund FIXED INCOME & MONEY MARKET FUNDS CIMB Islamic Enhanced Sukuk Fund CIMB Islamic Sukuk Fund CIMB Islamic Money Market Fund CIMB Islamic Deposit Fund REGIONAL & GLOBAL FUNDS CIMB Islamic Asia Pacific Equity Fund CIMB Islamic Greater China Equity Fund CIMB Islamic Global Emerging Markets Equity Fund CIMB Islamic Global Equity Fund CIMB Islamic Global Commodities Equity Fund CIMB Islamic Kausar Lifecycle Funds - a group of umbrella funds consisting of three (3) distinct Shariah-compliant Funds, known as: CIMB Islamic Kausar Lifecycle Fund ILF2017 CIMB Islamic Kausar Lifecycle Fund ILF2022 CIMB Islamic Kausar Lifecycle Fund ILF2027

IBF IBGF IESF ISF IMMF IDF IAPEF IGCEF IGEMEF IGEF ICEF ILF ILF2017 ILF2022 ILF2027

FYE - Financial year end.

HSBCT - HSBC (Malaysia) Trustee Berhad (1281-T).

Global Depositary Receipts (GDRs)

- Global Depository Receipts are generally available in one or more markets outside the foreign company's home country. A GDR is very similar to an ADR (please see definition above) but it is usually used when a depository receipt is traded in a country other than the United States. GDRs are usually in USD or EUR and can be traded primarily on European stock exchanges or over-the-counter.

IUTAs - Institutional Unit Trust Advisers.

Latest Practicable Date or LPD - 31 May 2011, in which all information provided herein, shall remain current and relevant as at such a date.

MARC - Malaysian Rating Corporation Berhad (364803 V).

Management Fee - A percentage of the NAV of the Fund that is paid to the Manager for managing the portfolio of the Fund.

Moody’s - Moody’s Investors Service.

MTB - Mayban Trustees Berhad (5004-P).

Net Asset Value or NAV - The NAV of the Fund is the value of all Fund’s assets less the value of all the Fund’s liabilities, at the point of valuation. For the purpose of computing the annual Management Fee (if any) and annual Trustee Fee (if any), the NAV of the Fund should be inclusive of the Management Fee and Trustee Fee for the relevant day.

NAV per unit - The Net Asset Value of the Fund divided by the number of units in circulation, at the valuation point.

OTC - Over-the-counter.

PGI - Principal Global Investors, LLC.

PIA - Principal International (Asia) Ltd.

Principal Financial Group or PFG - Principal Financial Group and its affiliates.

Quantshop MGS All Bond Index - An Index developed by Quant Shop Pty. Ltd.

RAM - RAM Rating Services Berhad (763588-T).

REIT - Real Estate Investment Trust.

RM and sen - Ringgit Malaysia and sen respectively.

S&P - Standard & Poor’s.

SC - Securities Commission Malaysia.

SC Guidelines - SC Guidelines on Unit Trust Funds as may be amended and/or updated from time to time.

Shariah - The Islamic Law comprising the whole body of rulings pertaining to human conducts derived from the sources of the Shariah. The primary sources are the Quran, the Sunnah, Ijma’ and Qiyas, while the secondary ones are those established sources such as Maslahah, Istihsan, Istishab, ‘Uruf and Sadd Zara’ie.

SIMSL - Schroder Investment Management (Singapore) Ltd.

Special Resolution - A resolution passed by a majority of not less than 3/4 of Unit holders voting at a meeting of Unit holders. For the purpose of terminating or winding up a fund, a Special Resolution is passed by a majority in number representing at least 3/4 of the value of the units held by Unit holders voting at the meeting.

Sukuk - A document or certificate, documenting the undivided pro-rated ownership of underlying assets. The sak (singular of Sukuk) is freely traded at par, premium or discount. In Malaysia, the term Sukuk is used for fixed income securities which comply with Shariah requirements. However, it is normally used together with Shariah principles applied in the

3

structure, such as Bai Bithaman Ajil, Murabahah and Istisna’ for underlying transactions based on indebtedness, or Musyarakah and Mudharabah for underlying transactions based on partnership.

Switching Fee - A charge that may be levied when switching is done from one Fund to another.

Transfer Fee - A nominal fee levied for each transfer of units from one Unit holder to another.

Trustees - AmTB, ART, HSBCT, MTB, UTMB and/or DTMB and “Trustee” means any one of them.

Trustee Fee - A fee that is paid to the Trustee for its services rendered as trustee of the Fund.

Unit holder - The registered holder for the time being of a unit of the Fund including persons jointly so registered.

UTMB - Universal Trustee (Malaysia) Berhad (17540-D).

Withdrawal Fee - A charge levied upon redemption under certain terms and conditions (if applicable).

4

Corporate Directory

The Manager CIMB-Principal Asset Management Berhad (304078-K) Business address Level 5, Menara Milenium 8, Jalan Damanlela Bukit Damansara 50490 Kuala Lumpur MALAYSIA Tel: (03) 2084 2000 Penang office Level 4, Menara BHL 51, Jalan Sultan Ahmad Shah 10050 Pulau Pinang MALAYSIA Tel: (04) 227 2177 Kuching office Level 6, Wisma STA 26, Jalan Datuk Abang Abdul Rahim 93450 Kuching Sarawak MALAYSIA Tel: (082) 330033 Registered address 5th Floor, Bangunan CIMB Jalan Semantan Damansara Heights 50490 Kuala Lumpur MALAYSIA Tel: (03) 2093 0379 Postal address CIMB-Principal Asset Management Berhad PO Box 10571 50718 Kuala Lumpur MALAYSIA Customer Care Centre 50, 52 & 54 Jalan SS 21/39 Damansara Utama 47400 Petaling Jaya Selangor Darul Ehsan MALAYSIA Tel: (03) 7718 3100 Fax: (03) 7718 3003 Website http://www.cimb-principal.com.my

E-mail [email protected]

Board of Directors Dato’ Mohd Shukri Hussin Dato’ Charon Wardini bin Mokhzani** Datuk Noripah binti Kamso Raja Noorma binti Raja Othman Peter William England John Campbell Tupling Rex Auyeung Ned Alan Burmeister Badlisyah bin Abdul Ghani*** Brig Gen (R) Dato’ Arif bin Dato’ Awang* Wong Joon Hian* Dato’ Anwar bin Aji* Loong Chun Nee* *Independent director ** Alternate Director to Dato Mohd Shukri Hussin *** Alternate director to Raja Noorma binti Raja Othman

Investment Committee Raja Noorma binti Raja Othman John Campbell Tupling Badlisyah bin Abdul Ghani Kim Teo Poh Jin* Fad’l bin Mohamed* Wong Fook Wah* *Independent member

Company Secretaries Datin Rossaya Mohd Nashir (LS 0007591) Halimah binti Habib (LS 0007999) 5th Floor, Bangunan CIMB Jalan Semantan Damansara Heights 50490 Kuala Lumpur MALAYSIA Tel: (03) 2093 0379

Shariah Adviser of the Funds CIMB Islamic Bank Berhad (671380-H) Business address Level 34, Menara Bumiputra-Commerce 11, Jalan Raja Laut 50350 Kuala Lumpur MALAYSIA Tel: (03) 2619 1188 Fax: (03) 2691 3513

Registered address 5th Floor, Bangunan CIMB Jalan Semantan Damansara Heights 50490 Kuala Lumpur MALAYSIA Tel: (03) 2093 0379

Investment Managers Investment Manager for IAPEF, DALI2, IEF, IBF & IGCEF CIMB-Principal Asset Management (S) Pte Ltd (200607208K) Business/Registered address 50 Raffles Place #26-05 Singapore Land Tower SINGAPORE 048623 Tel: (65) 6210 8488 Investment Manager for IGEF & IGEMEF Principal Global Investors, LLC Business/Registered address 801, Grand Avenue Des Moines, Iowa 50392-0490 Tel: 1 800 533 1390 Fax: +866 850 4024 Investment Manager for ICEF Schroder Investment Management (Singapore) Ltd Business/Registered address 65, Chulia Street #46-00 OCBC Centre SINGAPORE 049513 Tel: (65) 6535 3411 Fax: (65) 6536 6626

5

Fund Administrator Fund Administrator for IBF, DALI2 & IEF Citibank Berhad (297089-M) Business/Registered address Level 44, Menara Citibank 165, Jalan Ampang 50450 Kuala Lumpur MALAYSIA Tel: (03) 2383 0000 Fax: (03) 2383 6666

The Trustees Trustee for IEF, ISF & IEAF AmanahRaya Trustees Berhad (766894-T) Business address Tingkat 2, Wisma TAS No. 21, Jalan Melaka 50100 Kuala Lumpur MALAYSIA Tel: (03) 2036 5000 Fax: (03) 2072 0322 http://www.amanahraya.com.my Registered address Tingkat 11, Wisma AmanahRaya No. 2, Jalan Ampang 50508 Kuala Lumpur MALAYSIA Tel: (03) 2055 7388 Delegates of AmanahRaya Trustees Berhad for IEF Citibank NA (Singapore) Branch Business address 3 Temasek Avenue, #16-00 Centennial Tower SINGAPORE 039190 Tel: (65) 6328 5610 (GL) or 6328 5082 Fax: (65) 6328 5658 http://www.citibank.com Registered address 3, Temasek Avenue, #12-00 Centennial Tower SINGAPORE 039190 Trustee for DALI, DALI3 & IMMF AmTrustee Berhad (163032-V) Business address 15th Floor, Menara Merais 1, Jalan 19/3 46300 Petaling Jaya, Selangor Darul Ehsan MALAYSIA Tel: (03) 7954 6862 Fax: (03) 7954 3712 http://www.ambg.com.my Registered address 22nd Floor, Bangunan AmBank Group 55, Jalan Raja Chulan 50200 Kuala Lumpur MALAYSIA Delegate of AmTrustee Berhad for DALI AMSEC Nominees (Tempatan) Sdn Bhd (51181-W) Business address 11th Floor, Bangunan AmBank Group 55, Jalan Raja Chulan 50200 Kuala Lumpur MALAYSIA Tel: (03) 2036 2633 / 2036 2644 / 2036 2655 Fax: (03) 2026 3946 Registered address 22nd Floor, Bangunan AmBank Group 55, Jalan Raja Chulan

50200 Kuala Lumpur MALAYSIA Delegate of AmTrustee Berhad for DALI3 & IMMF CIMB Group Nominees (Tempatan) Sdn Bhd (274740-T) Business address Level 7, Wisma Amanah Raya Berhad Jalan Semantan, Damansara Heights 50490 Kuala Lumpur MALAYSIA Tel: (03) 2084 8888 Fax: (03) 2093 3157 Registered address 5th Floor, Bangunan CIMB Jalan Semantan, Damansara Heights 50490 Kuala Lumpur MALAYSIA Tel: (03) 2084 8888 Fax: (03) 2093 3720 Trustee for IBF, DALI2, ISCF Universal Trustee (Malaysia) Berhad (17540-D) Business/Registered address 1, Jalan Ampang (3rd Floor) 50450 Kuala Lumpur MALAYSIA Tel: (03) 2070 8050 Fax: (03) 2031 8715 / 2032 3194 / 2070 1296 Delegate of Universal Trustee (Malaysia) Berhad for IBF & DALI2 Citibank NA (Singapore) Branch Business/Registered address 3 Temasek Avenue, #16-00 Centennial Tower SINGAPORE 039190 Tel: (65) 6328 5610 (GL) Fax: (65) 6328 5658 http://www.citibank.com Trustee for the IBGF Mayban Trustees Berhad (5004-P) Business/Registered address 34th Floor, Menara Maybank 100, Jalan Tun Perak 50050 Kuala Lumpur MALAYSIA Tel: (03) 2078 8363 http://www.maybank2u.com.my Delegate of Mayban Trustees Berhad Malayan Banking Berhad (3813-K) (as custodian) (Maybank Custody Services) Business/Registered address 14th Floor, Menara Maybank 100, Jalan Tun Perak 50050 Kuala Lumpur MALAYSIA Tel: (03) 2074 7111 Trustee for IGEF, IGEMEF & ICEF Deutsche Trustees Malaysia Berhad (763590-H) Business/Registered address Level 20, Menara IMC 8, Jalan Sultan Ismail 50250 Kuala Lumpur MALAYSIA Tel: (03) 2053 7522 Delegate of Deutsche Trustees Malaysia Berhad (Local & Foreign custodian) Deutsche Bank (Malaysia) Berhad (312552-W) Registered address Level 18, Menara IMC 8, Jalan Sultan Ismail 50250 Kuala Lumpur MALAYSIA Tel: (03) 2053 6788

6

Business address Levels 18-20, Menara IMC 8, Jalan Sultan Ismail 50250 Kuala Lumpur MALAYSIA Tel: (03) 2053 6788 Trustee for IESF, IAPEF, ILF, IGCEF & IDF HSBC (Malaysia) Trustee Berhad (1281-T) Business/Registered address Suite 901, 9th Floor Wisma Hamzah-Kwong Hing 1, Lebuh Ampang 50100 Kuala Lumpur MALAYSIA Tel: (03) 2074 3200 Fax: (03) 2078 0145 Delegate of HSBC (Malaysia) Trustee Berhad (for local investments) The Hongkong And Shanghai Banking Corporation (as custodian) and assets held through: HSBC Nominees (Tempatan) Sdn Bhd (258854-D) Business/Registered address 2, Lebuh Ampang 50100 Kuala Lumpur MALAYSIA Tel: (03) 2070 0744 Fax: (03) 2072 9787 Delegate of HSBC (Malaysia) Trustee Berhad (for foreign investments) HSBC Institutional Trust Services (Asia) Limited 6th Floor, Tower One HSBC Centre 1, Sham Mong Road Kowloon HONG KONG Tel: (852) 2533 6333 Fax: (852) 2869 6120

Federation of Investment Managers Malaysia (FIMM) 19-07-3, 7th Floor, PNB Damansara 19, Lorong Dungun Damansara Heights 50490 Kuala Lumpur MALAYSIA Tel: (03) 2093 2600 E-mail: [email protected] http://www.fmutm.com.my

Auditors of the Manager and of the Funds/Reporting Accountants PricewaterhouseCoopers Chartered Accountants Level 10, 1 Sentral Jalan Travers Kuala Lumpur Sentral PO Box 10192 50706 Kuala Lumpur MALAYSIA

Tax Adviser PricewaterhouseCoopers Taxation Services Sdn Bhd Level 10, 1 Sentral Jalan Travers Kuala Lumpur Sentral PO Box 10192 50706 Kuala Lumpur MALAYSIA

Solicitors Soon Gan Dion & Partners 1st Floor, 73 Jalan SS21/1A, Damansara Utama 47400 Petaling Jaya Selangor Darul Ehsan MALAYSIA Tel: (03) 7726 3168 Fax: (03) 7726 3445

Principal Bankers CIMB Bank Berhad Menara Bumiputra-Commerce 11, Jalan Raja Laut 50350 Kuala Lumpur MALAYSIA CIMB Investment Bank Berhad 10th Floor, Bangunan CIMB Jalan Semantan Damansara Heights 50490 Kuala Lumpur MALAYSIA Malayan Banking Berhad (3813K) Kuala Lumpur Main Office Menara Maybank 100, Jalan Tun Perak 50050 Kuala Lumpur MALAYSIA Citibank Berhad (297089-M) Level 45, Menara Citibank 165, Jalan Ampang 50450 Kuala Lumpur MALAYSIA

Independent Investment Consultants Mercer (Malaysia) Sdn. Bhd. Suite 17-02 Kenanga International Jalan Sultan Ismail 50250 Kuala Lumpur MALAYSIA

7

Key Data This section contains a summary of the salient information about the Funds. You should read and understand the entire Master Prospectus (Shariah-compliant Funds) before investing and keep the Master Prospectus (Shariah-compliant Funds) for your records. In determining which investment is right for you, we recommend you speak to professional advisers. CIMB-Principal Asset Management Berhad, member companies of the CIMB Group, the Principal Financial Group and the Trustees do not guarantee the repayment of capital.

Fund Information – Equity Funds

CIMB Islamic DALI Equity Growth Fund For further

details, please refer to page

Fund Category / Type Equity (Shariah) / Growth.

Investment objective To achieve consistent capital growth over the medium to long-term. 44

Benchmark FTSE Bursa Malaysia EMAS Shariah Index. 44

Investment policy and principal investment strategy

The Fund would invest principally in Shariah-compliant equities but may also invest in other Shariah-compliant investments, such as Sukuk with a minimum credit rating of “A3” or “P2” by RAM or equivalent rating by MARC; “BBB” by S&P or equivalent rating by Moody’s or Fitch. In line with its objective, the investment strategy and policy of the Fund is to rebalance the portfolio to suit market conditions in order to reduce short-term volatility and provide consistency in capital growth.

Between 70% to 98% (both inclusive) of the Fund’s NAV will be invested in Shariah-compliant securities and other Shariah-compliant investments, and at least 2% of the Fund’s NAV in Shariah-compliant liquid assets.

44

Principal risks Stock specific risk & company specific risk. 32

Investor profile

The recommended investment timeframe for this Fund is three (3) years or more. This Fund is suitable for investors who:

� have a medium to long-term investment horizon;

� want a portfolio of investments that adhere to the Shariah principles;

� want a diversified portfolio that includes Shariah-compliant equities and Sukuk; and/or

� are willing to take moderate risk for potentially better capital appreciation.

Trustee AmTrustee Berhad. 136

Distribution policy The Manager has the discretion to distribute part or all of the Fund’s distributable income. The distribution (if any) may vary from period to period depending on the investment objective and the performance of the Fund.

117

Launch date 7 May 1998.

Financial year-end 31 May.

Maximum approved fund size 1.8 billion units.

Units in circulation (as at LPD) 1.36 billion units.

8

CIMB Islamic DALI Equity Fund For further



Investment objective To achieve a consistent capital growth over the medium to long-term. 45

Benchmark 70% FTSE Bursa Malaysia EMAS Shariah Index + 30% Dow Jones Islamic Asia Pacific ex Japan.

45


The Fund is a Shariah-compliant equity growth fund and is a continuation of CIMB Islamic DALI Equity Growth Fund. It may invest a minimum of 70% and up to a maximum of 98% of its NAV principally in Shariah-compliant equities aimed to provide growth but may also invest in other Shariah-compliant investments, such as Sukuk with a minimum credit rating of “A3” or “P2” by RAM or equivalent rating by MARC; “BB” by S&P or equivalent rating by Moody’s or Fitch. In line with its objective, the investment strategy and policy of the Fund is to rebalance the portfolio to suit market conditions in order to reduce short-term volatility and provide consistency in capital growth. Between 70% to 98% (both inclusive) of the Fund’s NAV will be invested in Shariah-compliant securities and other Shariah-compliant investments, and at least 2% of the Fund’s NAV in Shariah-compliant liquid assets.

45

Principal risks Stock specific risk, company specific risk, country risk and currency risk. 32

Investor profile




� want a diversified portfolio that includes Shariah-compliant equities and Sukuk;

� want a portfolio with some exposure in foreign investments; and/or

� are willing to take moderate risk for potentially better capital appreciation.

Investment Manager (foreign portion)

CIMB-Principal Asset Management (S) Pte. Ltd.

Trustee Universal Trustee (Malaysia) Berhad. 142


117

Launch date 30 April 2003.


Maximum approved fund size 500 million units.

Units in circulation (as at LPD) 177.15 million units.

9

CIMB Islamic DALI Equity Theme Fund For further



Investment objective

The Fund aims to provide investors with medium to long-term capital appreciation through investments in securities of Malaysian companies that will benefit from prevailing investment themes and that conform with Shariah principles.

46



The strategy of the Fund will be to invest in sectors that are related to the prevailing domestic and/or global investment themes. Between 70% to 98% (both inclusive) of the Fund’s NAV will be invested in equities listed on Bursa Malaysia that conform with Shariah principles and at least 2% of the Fund’s NAV will be invested in Shariah-compliant liquid assets for liquidity purposes.

46

Principal risks Stock specific risk, company specific risk and sector risk. 33

Investor profile

The recommended investment timeframe for this Fund is five (5) years or more. This Fund is suitable for investors who:



� want a diversified portfolio with thematic investments opportunities;

� can accept that investment returns may fluctuate significantly over the short-term and may even be negative; and/or

� are willing to take above average to high risk in anticipation for higher capital appreciation.


Distribution policy Given its investment objective, the Fund is not expected to pay any distribution.

117

Launch date 28 February 2008.

Financial year-end 30 November.


Units in circulation (as at LPD) 1.74 billion units.

10

CIMB Islamic Equity Fund For further



Investment objective To provide investors with long-term capital growth by investing principally in equities. The Fund also seeks to outperform the benchmark.

48

Benchmark 50% FTSE Bursa Malaysia EMAS Shariah Index + 50% Dow Jones Islamic Asia Pacific ex Japan.

48


The Fund will invest a minimum of 70% and up to a maximum of 98% of its NAV in Shariah-compliant equities in order to gain long-term capital growth. The Fund may opt to invest in Shariah-compliant foreign equities up to a maximum of 50% of its NAV. In addition, Shariah-compliant liquid assets may be strategically used if the Investment Manager feels that the market downside risk is high in the short-term. In line with its objective, the investment strategy and policy of the Fund is to have diversified portfolio of the Shariah-compliant stocks aimed at outperforming the market at different cycles of the market. Between 70% to 98% (both inclusive) of the Fund’s NAV will be invested in Shariah-compliant equities and at least 2% of the Fund’s NAV in Shariah-compliant liquid assets.

48

Principal risks Stock specific risk, company specific risk, country risk and currency risk. 33

Investor profile


� have a medium to long-term investment;


� are seeking maximum capital appreciation over the long-term and do not require regular income from their investment;

� want a portfolio with some exposure in foreign investments;

� are comfortable with a higher than average degree of volatility; and/or

� are willing to take higher risks in anticipate of potentially higher returns.


CIMB-Principal Asset Management (S) Pte. Ltd.

Trustee AmanahRaya Trustees Berhad. 135


117

Launch date 8 October 2004.

Financial year-end 31 October.



11

CIMB Islamic Equity Aggressive Fund For further



Investment objective To earn reasonable returns for investors by investing in approved equities listed on Bursa Malaysia as well as unlisted securities and other non-interest bearing assets acceptable under Shariah principles.

49



The Fund may invest a minimum of 70% and up to a maximum of 98% of its NAV in local Shariah-compliant equities. As an aggressive Fund, the Fund will be managed with higher beta and tracking error. The investment policy and strategy of the Fund will be to invest in Shariah-compliant stocks which are selected based on their future growth prospects with benchmarking of the Fund being a secondary consideration. As such, the Fund may hold a larger percentage of its NAV (may exceed 10%) in Shariah-compliant stocks of companies with small capitalization. In addition, Shariah-compliant liquid assets with at least 2% of its NAV may also be strategically used if the Manager feels that the market downside risk is high in the short-term.

49

Principal risks Stock specific risk and company specific risk. 33

Investor profile


� have a medium to long-tem investment horizon;


� are seeking capital appreciation over the long-term and do not require regular income from their investment;

� are willing to take higher risks in anticipation of potentially higher returns; and/or

� can accept that investment returns may fluctuate significantly over the short-term and may even be negative.


Distribution policy Distribution (if any) is expected to be distributed every January at the Manager’s discretion.

117

Launch date 15 June 1995.

Financial year-end 31 December.



12

CIMB Islamic Small Cap Fund For further


Fund Category / Type Equity (small cap) (Shariah) / Growth.

Investment objective The objective of the Fund is to seek medium to long-term growth in capital by investing principally in emerging companies listed on Bursa Malaysia and this must be in accordance with the Shariah principles.

50

Benchmark FTSE Bursa Malaysia Small Cap Index. 50


The Fund may invest a minimum of 70% and up to a maximum of 98% of its NAV in Shariah-compliant stocks of smaller companies with market capitalisation at point of purchase not exceeding the market capitalisation of the largest constituent stock (by market capitalisation) of the benchmark. The investment policy and strategy of the Fund will therefore focus on investments in Shariah-compliant securities of such emerging companies with strong potential growth and hands-on management policies but lacking in track records. To a lesser extent, the Fund may also invest in other Shariah-compliant investments such as Shariah-compliant fixed income securities primarily for the purpose of cash management. In addition, Shariah-compliant liquid assets may be strategically used if the Manager feels that the market downside risk is high in the short-term. Between 70% to 98% (both inclusive) of the Fund’s NAV will be invested in Shariah-compliant equities and other Shariah-compliant investments, with at least 2% of the Fund’s NAV in Shariah-compliant liquid assets.

50

Principal risks Stock specific risk, company specific risk and liquidity risk. 34

Investor profile


� have a long-term horizon;


� want to diversify their overall investment portfolio by including shares as an asset class, in particular, shares of smaller companies;

� are seeking higher capital appreciation over the long-term; and/or

� are willing to take higher risks in pursuit of potentially higher returns compared to other kinds of investment instruments.



117

Launch date 30 April 2003.




13

Fund Information – Mixed Asset Funds

CIMB Islamic Balanced Fund For further


Fund Category / Type Balanced (Shariah) / Growth & Income.

Investment objective To achieve medium to long-term growth in both capital and income by investing in permissible Shariah-compliant investments.

51

Benchmark 30% FTSE Bursa Malaysia EMAS Shariah Index + 30% Dow Jones Islamic Asia Pacific ex Japan + 40% CIMB Islamic 1-month General Investment Account.

51


The Fund aims to invest in a diversified portfolio of Shariah-compliant equities and Shariah-compliant fixed income investments. In line with its objective, the investment policy and strategy will be to maintain a balanced portfolio between Shariah-compliant equities and Shariah-compliant fixed income investments in the ratio of 60:40. The fixed income portion of the Fund is to provide some capital stability to the Fund whilst the equity portion will provide the added return in a rising market. The investments by the Fund in Shariah-compliant equities shall not exceed 60% of the NAV of the Fund and investments in Shariah-compliant fixed income securities and Shariah-compliant liquid assets shall not be less than 40% of the NAV of the Fund with a minimum credit rating of “BBB3” or “P2” by RAM or equivalent rating by MARC; “BB” by S&P or equivalent rating by Moody’s or Fitch. At least 2% of the Fund’s NAV will be invested in Shariah-compliant liquid assets.

51

Principal risks Stock specific risk, company specific risk, counterparty risk, credit/default risk, interest rate risk, country risk and currency risk.

34

Investor profile




� want a diversified portfolio with preference to higher equity exposure for potentially higher capital appreciation;

� accept that investment returns may be negative over the short-term, but recognise that a diversified fund tends to produce a smoother return over time than a fund which invests in only one asset class such as equities; and/or

� are willing to take moderate risks for moderate capital appreciation.


CIMB-Principal Asset Management (S) Pte. Ltd. 127



117

Launch date 8 March 2001.

Financial year-end 30 September.



14

CIMB Islamic Balanced Growth Fund For further


Fund Category / Type Balanced (Shariah) / Growth & Income.

Investment objective The objective of the Fund is to grow the value of the Unit holders’ investments over the long-term in a diversified mix of Malaysian assets in approved Shariah instruments while providing consistent income.

53

Benchmark 60% FBM EMAS Shariah Index + 40% CIMB Islamic 1-Month General Investment Account-i (GIA).

53


The Fund aims to invest in a diversified portfolio of Malaysian assets comprising Shariah-compliant equities and Shariah-compliant fixed income investments. In line with its objective, the investment policy and strategy of the Fund will be to maintain a balanced portfolio between Shariah-compliant equities and Shariah-compliant fixed income investments in the ratio of 60:40. The fixed income portion of the Fund is to provide some capital stability to the Fund whilst the equity portion will provide the added return in a rising market. The investment by the Fund in Shariah-compliant equities shall not be less than 40% of the NAV of the Fund and investments in Shariah-compliant fixed income securities and Shariah-compliant liquid assets shall not exceed 60% of the NAV of the Fund with a minimum local rating of “BBB3” or “P2” by RAM or equivalent rating by MARC; “BBB” by S&P or equivalent rating by Moody’s or Fitch. At least 2% of the Fund’s NAV will be invested in Shariah-compliant liquid assets.

53

Principal risks Stock specific risk, company specific risk, counterparty risk, credit/default risk and interest rate risk.

35

Investor profile




� are seeking capital appreciation with income being secondary;

� want a diversified portfolio yet prefer a higher exposure to investments in equities for potentially higher returns over the long-term; and/or

� accept that investment returns may be negative over the short-term, but recognise that a diversified fund tends to produce a smoother return over time than a fund which invests in only one asset class such as equities.

Trustee Mayban Trustees Berhad. 141

Distribution policy Distribution (if any) is expected to be distributed every January at the Manager’s discretion*.

117

Launch date 26 May 2003.

Financial year-end 31 December.



* Note: Pursuant to the Master Deed, the Manager has the right to make provisions for reserves in respect of distribution of the Fund. If the distribution available is too small or insignificant, any distribution may not be of benefit to the Unit holders as the total cost to be incurred in any such distribution may be higher than the amount for distribution. The Manager has the discretion to decide on the amount to be distributed to the Unit holders.

15

Fund Information – Fixed Income & Money Market Funds

CIMB Islamic Enhanced Sukuk Fund For further


Fund Category / Type Sukuk / Income.

Investment objective The objective of the Fund is to grow the value of Unit holders’ investments over the medium-term in Sukuk portfolio with most tenures ranging from 3-10 years as well as to provide regular income.

54

Benchmark 85% CIMB Islamic 1-Month General Investment Account-i (GIA) + 15% FBM EMAS Shariah Index.

54


A minimum of 60%* and up to a maximum of 98% of the Fund’s NAV may be invested in Sukuk carrying at least a “BBB3” or “P2” rating by RAM or equivalent rating by MARC; “BBB” by S&P or equivalent rating by Moody’s or Fitch. The Fund may also invest between 0% to 20% (both inclusive) of its NAV in Shariah-compliant equities, of which up 10% of its NAV may be invested in warrants of Shariah-compliant companies. At least 2% the Fund’s NAV in Shariah-compliant liquid assets. The investment strategy and policy of the Fund is focus bias towards Shariah-compliant fixed income investments aimed to provide consistency in income, while allowing some exposure in Shariah-compliant equities and warrants aimed to provide the added return in a rising market.

54

Principal risks Credit/Default risk, interest rate risk, counterparty risk, stock specific risk, company specific risk and risks associated with investment in warrants/ options.

36

Investor profile


� have a medium-term investment horizon;


� want a diversified portfolio of investments that includes Sukuk;

� seek for less volatile asset class with some exposure to the equities;

� are willing to take moderate risk for potentially higher returns; and/or

� can accept that returns may fluctuate over the short-term.

Trustee HSBC (Malaysia) Trustee Berhad. 138

Distribution policy Distribution (if any) is expected to be distributed annually at the Manager’s discretion**.

117

Launch date 23 February 2005.

Financial year-end 31 March.



* With effect from 30 September 2011, the asset allocation will be increased to 70%. ** Note: Pursuant to the Master Deed, the Manager has the right to make provisions for reserves in respect of distribution of the Fund. If the distribution available is too small or insignificant, any distribution may not be of benefit to the Unit holders as the total cost to be incurred in any such distribution may be higher than the amount for distribution. The Manager has the discretion to decide on the amount to be distributed to the Unit holders.

16

CIMB Islamic Sukuk Fund For further


Fund Category / Type Sukuk / Income.

Investment objective

To gain higher than average income over the medium to long-term by investing in a diversified portfolio consisting principally of Sukuk, certificates of deposit, short-term money market instruments and other permissible investments under the Shariah principles.

56

Benchmark Quantshop GII Medium Index. 56


A minimum of 60%* and up to a maximum of 98% of the Fund’s NAV may be invested in Sukuk carrying at least a “BBB3” or “P2” rating by RAM or equivalent rating by MARC; “BBB” by S&P or equivalent rating by Moody’s or Fitch. The rest of the Fund is maintained in the form of Shariah-compliant liquid assets to meet any redemption payments to Unit holders. In line with its objective, the investment strategy and policy of the Fund is to invest in a diversified portfolio of Shariah-compliant fixed income securities consisting primarily of Sukuk, and aims to provide a steady stream of income.

56

Principal risks Credit/Default risk, interest rate risk and counterparty risk. 36

Investor profile




� want a diversified portfolio of fixed income securities;

� want to receive a tax-effective income stream and maintain the value of their investment over the medium-term; and/or

� are looking for a less volatile investment but can accept that returns may fluctuate over the short-term.


Distribution policy Distribution (if any) is expected to be distributed annually, depending on the performance of the Fund and at the Manager’s discretion.

117

Launch date 8 October 2004.

Financial year-end 31 August.



* With effect from 30 September 2011, the asset allocation will be increased to 70%.

17

CIMB Islamic Money Market Fund For further


Fund Category / Type Money Market (Shariah) / Income.

Investment objective The Fund aims to provide investors with liquidity and regular income, whilst maintaining capital stability by investing primarily in money market instruments that conform with Shariah principles.

57

Benchmark CIMB Islamic 1-Month General Investment Account-i (GIA). 57


The Fund will place at least 90% of its NAV in quality Islamic money market instruments such as Islamic Accepted Bills, Islamic Negotiable Instruments of Deposits and Islamic Repurchase Agreements (Repo-i) as well as in any other Shariah-compliant fixed income instruments and placements of Shariah-compliant deposits with financial institutions, all of which are highly liquid and have a remaining maturity period of less than 365 days. Up to 10% of the Fund’s NAV may be invested in Shariah-compliant fixed income instruments which have a remaining maturity period of more than 365 days but less than 732 days. The Fund will be actively managed. The strategy is to invest in liquid, low risk short-term investments with a high degree of capital preservation. The investment strategy adheres to the SC Guidelines pertaining to investments for a money market fund. As such any changes to these guidelines would tantamount to a change in this investment strategy.

57

Principal risks Credit/Default risk, interest rate risk and counterparty risk. 37

Investor profile

The recommended investment timeframe for this Fund is one (1) year or more. The Fund is suitable for investors who:

� invest the cash portion of an investment portfolio; and/ or

� “park” money aside while waiting to make another investment.

It is also suitable for investors who:

� have either a short or medium-term investment horizon;


� desire a stream of income;

� seek for security and flexibility in investment; and/or

� want easy access to their funds.


Distribution policy Monthly, depending on the level of income (if any) the Fund generates. 117

Launch date 17 March 2008.

Financial year-end 30 November.

Maximum approved fund size 506.25 million units.


18

CIMB Islamic Deposit Fund For further


Fund Category / Type Money Market (Shariah) / Income.

Investment objective The Fund aims to provide investors with liquidity and regular income, whilst maintaining capital stability by investing primarily in deposits that comply with the Shariah principles.

58

Benchmark Islamic Interbank Overnight Rate. 58


The Fund seeks to achieve its objective by investing at least 95% of the its NAV in Shariah-compliant deposits with financial institutions. The remaining of the Fund’s NAV is maintained in cash or its equivalent for any expenses recoverable directly from the Fund in accordance with the Deed and/or SC Guidelines. The investment policy is to invest in liquid and low risk short-term investments with a high degree of capital preservation.

The Fund will be actively managed to provide liquidity and to accommodate the short-term cash flow requirements of its Unit holders.

58

Principal risks Default risk. 37

Investor profile

The recommended investment timeframe for this Fund is one (1) year. This Fund is suitable for investors who:

� seek liquid and low risk investment with a short-term investment horizon;

� want a Shariah-compliant investment;

� seek for a security and flexibility in investment; and/or;

� want to set money aside while waiting to make another investment.


Distribution policy Monthly, depending on the level of income (if any) the Fund generates. 117

Launch date 9 September 2009.

Financial year-end 31 January.



19

Fund Information – Regional & Global Funds

CIMB Islamic Asia Pacific Equity Fund For further



Investment objective The Fund aims to achieve long-term capital appreciation and income while complying with Shariah investment criteria, through investments in the emerging and developed markets of Asia Pacific ex Japan region.

59

Benchmark The Dow Jones Islamic Market Asia/Pacific ex Japan Index. 59


The Fund is predominantly an equity fund which invests through shares listed on the stock exchanges in the emerging and developed markets of Asia Pacific ex Japan, i.e. Hong Kong SAR, Taiwan, Korea, the People’s Republic of China, Indonesia, Malaysia, India, Thailand, the Philippines, Sri Lanka, Singapore, Australia and New Zealand. Between 70% to 98% (both inclusive) of its NAV can be invested in Shariah-compliant equities, Shariah-compliant warrants, Shariah-compliant options or other Shariah-compliant stock purchase rights, participation in Shariah-compliant mutual funds and other interests in Shariah-compliant collective investment schemes which are permitted under the SC Guidelines. Up to 30% of the Fund’s NAV may also invest in Sukuk and Shariah-compliant deposits. For this Fund, the investments in Sukuk must satisfy a minimum rating requirement of at least a “BBB3” or “P2” rating by RAM or equivalent rating by MARC; “BB” by S&P or equivalent rating by Moody’s or Fitch.

59

Principal risks Stock specific risk, company specific risk, country risk, currency risk, risks associated with investment in warrants/options and counterparty risk.

37

Investor profile


� have a long-term investment horizon;


� want a well diversified portfolio of the Asia Pacific ex Japan region equities; and/or

� are willing to take higher risks in anticipation for potentially higher capital appreciation over the long-term.


CIMB-Principal Asset Management (S) Pte. Ltd. 127


Distribution policy Regular distributions are not the focus of this Fund. Distributions, if any, are at the discretion of the Manager.

117


Financial year-end 30 April.



20

CIMB Islamic Greater China Equity Fund For further



Investment objective The Fund aims to provide investors with medium to long term capital appreciation by capitalizing on investments ideas in Shariah-compliant equities in the Greater China region.

60

Benchmark Dow Jones Islamic Market China/Hong Kong Titans Index. 60


The Fund seeks to achieve its objective by investing primarily in Shariah-compliant equities and Shariah-compliant equity related securities of companies based in the Greater China region which offer attractive valuations and medium to long-term growth potentials. These include Shariah-compliant companies listed or to be listed on recognised exchanges of the People’s Republic of China, Hong Kong SAR and Taiwan as well as China-based companies listed on overseas recognized exchanges. These companies are typically medium to large-cap companies which are currently trading at very attractive valuations and which would ride on the future recovery and growth of the Greater China region and the global economy.

The Fund will generally have an equity exposure of up to 98% of its NAV with at least 2% of its NAV invested in Shariah-compliant liquid assets for liquidity purposes.

60

Principal risks Stock specific risk, country risk, repatriation risk, regulatory risk, currency risk, liquidity risk and counterparty risk.

38

Investor profile

The recommended investment timeframe for this Fund is at least three (3) years. The Fund is suitable for investors who:


� wish to participate in the upside potential of the Greater China markets; and/or

� are willing to accept equity risks to garner potentially greater returns over the medium to long term investment horizon.

Investment Manager CIMB-Principal Asset Management (S) Pte. Ltd. 127



117


Financial year-end 31 July.



21

CIMB Islamic Global Emerging Markets Equity Fund For further



Investment objective The Fund aims to provide investors with medium to long-term capital appreciation through investments in the global emerging markets and that conform with Shariah principles.

61

Benchmark Dow Jones Islamic Market Emerging Markets Index. 61


The Fund seeks to achieve its objective by investing principally in Shariah-compliant securities of companies domiciled or with their core business in the world’s emerging markets, which the fund manager believes are undervalued and have the potential for significant growth. Up to 98% of the Fund’s NAV will be invested in global emerging market securities that conform with Shariah principles and at least 2% of the Fund’s NAV will be invested in Shariah-compliant liquid assets for liquidity purposes.

61

Principal risks

The main risks are risks associated with investments in emerging markets (e.g. stock specific risk, country risk, currency risk, risks associated with investment in warrants/options, liquidity risk, stock market practices risk and information quality risk).

39

Investor profile

The Fund is suitable for investors who:


� seek an opportunity to participate in the rapidly developing emerging market economies, which are expected to have faster long-term growth rates than most developed economies; and/or

� are willing to accept equity risks to garner potentially greater returns over the medium to long-term investment horizon.

Investment Manager Principal Global Investors, LLC. 129

Trustee Deutsche Trustees Malaysia Berhad. 137


117

Launch date 2 July 2008.

Financial year-end 31 July.



22

CIMB Islamic Global Equity Fund For further



Investment objective The Fund aims to provide investors with medium to long-term capital appreciation, through investments in the global markets that comply with Shariah principles.

63

Benchmark Dow Jones Islamic Market IndexSM (also known as, the Dow Jones Islamic Market World IndexSM).

63


The Fund seeks to achieve its objective by investing principally in equities which are Shariah-compliant selected from investment markets around the world, which the fund manager believes are undervalued and have the potential for significant growth. Between 70% to 99.5% (both inclusive) of the Fund’s NAV can be invested in Shariah-compliant global equities and at least 0.5% of the Fund’s NAV will be invested in Shariah-compliant liquid assets.

63

Principal risks Stock specific risk, company specific risk, country risk, currency risk, risks associated with investment in warrants/options and liquidity risk.

40

Investor profile

The recommended investment timeframe for this Fund is three (3) to five (5) years. The Fund is suitable for investors who:



� want a diversified portfolio that includes an exposure to global equities;

� can accept that investment returns may fluctuate significantly over the short-term and may even be negative; and/or

� are willing to take higher risk in anticipation for potentially higher capital appreciation.

Investment Manager Principal Global Investors, LLC. 129



117

Launch date 8 January 2008.

Financial year-end 30 April.



23

CIMB Islamic Global Commodities Equity Fund For further



Investment objective The Fund seeks to provide capital growth over the medium to long-term through investments in global commodity-related securities, predominantly in commodity-related equities, which conforms to Shariah principles.

65

Benchmark 50% Dow Jones Islamic Market Oil & Gas Index + 50% Dow Jones Islamic Market Basic Materials Index

65


The investment strategy and policy of the Fund is to invest in global commodity-related securities, predominantly in commodity-related equities and equity related securities, which conforms to Shariah principles. The Fund will invest at least 70% of its NAV in Shariah-compliant equities and Shariah-compliant equity related securities of companies that are primarily engaged in activities related to commodities. These companies would include but not limited to those in the sector of basic materials (i.e. precious metals), energy (i.e. crude oil), renewable energy (i.e. hydropower) and agriculture (i.e. plantation). At least 2% of the Fund’s NAV will be invested in liquid assets for liquidity purpose. The fund manager may also invest in Shariah-compliant derivatives if it presents a more compelling alternative to equities, but subject to a maximum of 28% of the Fund’s NAV. The underlying assets of the Shariah-compliant derivatives shall be related/linked to commodities, which include, but not limited to commodity exchange-traded funds and commodity indexes. These securities would need to be approved by the Shariah Adviser before the fund manager can proceed with investments. As the Fund is a global fund, the countries in which the Fund may invest in include, but not limited to Malaysia, Australia, Austria, Belgium, Bermuda, Brazil, Canada, Chile, the People’s Republic of China, Columbia, Cyprus, Czech Republic, Denmark, Egypt, Finland, France, Germany, Greece, Hong Kong SAR, Hungary, India, Indonesia, Ireland, Italy, Japan, Luxembourg, Mexico, Morocco, the Netherlands, New Zealand, Norway, Peru, the Philippines, Poland, Portugal, Russia, Singapore, South Africa, South Korea, Spain, Sweden, Switzerland, Taiwan, Thailand, Turkey, the United Kingdom and the United States of America.

65

Principal risks The main risks are stock specific risk, sector risk, country risk, currency risk, liquidity risk, risk associated with investment in the commodity industry and risk associated with investment in derivatives.

40

Investor profile

The Fund best suits you if you:


� have a medium to long term investment horizon;

� want access to investment in commodities securities;

� want to participate in the upside potential of the equity markets and the commodities market;

� seek diversification within an equity portfolio; and

� are willing to accept equity risks to garner potentially greater returns.

Investment Manager Schroder Investment Management (Singapore) Ltd. 131


Distribution Policy Given its investment objective, the Fund is not expected to pay any distribution.

117

Launch Date 6 January 2010.

Financial year-end 30 September.



24

CIMB Islamic Kausar Lifecycle 2017



For further details,

please refer to page


Investment objective The Fund aims to provide investors with capital growth through a well-diversified and evolving asset allocation which conforms to Shariah principles.

66

Benchmark at the onset

CIMB Islamic 12-Month General Investment Account-i (GIA) (35%) + FBM EMAS Shariah Index (30%) + Dow Jones Islamic Market World Index (35%).



66

Each Fund seeks to achieve its investment objective by investing in different combinations of the asset classes – liquid assets, local/foreign Sukuk, local equities, developed equities, emerging equities, local/foreign REITS which are Shariah-compliant. As the Fund approaches maturity, allocation to less risky assets such as Sukuk will increase. The initial asset allocation for each Fund is as follows (based on percentage of each Fund’s NAV). For information on how the asset allocation evolves during the Fund’s tenure, please refer to page 69.


� Shariah-compliant liquid assets (0-5%)

� Local/foreign Sukuk (10-50%)

� Shariah-compliant local equities (20-35%)

� Shariah-compliant developed equities (15-30%)

� Shariah-compliant emerging equities (0-10%)

� Shariah-compliant local/foreign REITs (0-10%).













66

Principal risks Stock specific risk, company specific risk, country risk, currency risk, credit/default risk, interest rate risk, counterparty risk & risks associated with investment in REITs.

41

Investor profile

The Fund is suitable for investors who seek a Shariah-compliant investment plan spanning ten (10) years from the Fund’s launch date.

Such plans include preparation for children’s educational needs, additional personal retirement savings or future savings.

The Fund is suitable for investors who seek a Shariah-compliant investment plan spanning fifteen (15) years from the Fund’s launch date.


The Fund is suitable for investors who seek a Shariah-compliant investment plan spanning twenty (20) years from the Fund’s launch date.



Distribution policy Given its investment objective, the Fund is not expected to pay any distribution. 117

Launch date 12 July 2007.

Maturity Date The 10th anniversary of the commencement date of the Fund, i.e. 10 August 2017.

The 15th anniversary of the commencement date of the Fund, i.e. 10 August 2022.

The 20th anniversary of the commencement date of the Fund, i.e. 10 August 2027.

Financial year-end 31 August.

Maximum approved fund size

600 million units (combined fund size for the CIMB Islamic Kausar Lifecycle Funds).

Units in circulation (as at LPD)

4.85 million units. 2.41 million units. 2.78 million units.

25

Fees & Charges This table describes the charges that you may directly incur when you buy units of the Funds. The Application Fee may differ between distribution channels.

Maximum Application Fee (% of the NAV per unit) *

CWA Other IUTAs

(%) (%)

Equity Funds

CIMB Islamic DALI Equity Growth Fund 6.5 6.5

CIMB Islamic DALI Equity Fund 6.5 6.5

CIMB Islamic DALI Equity Theme Fund 6.5 6.5

CIMB Islamic Equity Fund 6.5 6.5

CIMB Islamic Equity Aggressive Fund 5.0 5.0

CIMB Islamic Small Cap Fund 6.5 6.5

Mixed Asset Funds

CIMB Islamic Balanced Fund 6.5 6.5

CIMB Islamic Balanced Growth Fund 6.0 5.0


CIMB Islamic Enhanced Sukuk Fund 2.0 2.0

CIMB Islamic Sukuk Fund 2.0 2.0

CIMB Islamic Money Market Fund Nil Nil

CIMB Islamic Deposit Fund Nil Nil


CIMB Islamic Asia Pacific Equity Fund 5.0 5.0

CIMB Islamic Greater China Equity Fund 6.5 6.5

CIMB Islamic Global Emerging Markets Equity Fund

6.5 6.5

CIMB Islamic Global Equity Fund 6.5 6.5

CIMB Islamic Global Commodities Equity Fund

6.5 6.5

CIMB Islamic Kausar Lifecycle Funds 6.5 6.5

* Notwithstanding the maximum Application Fee disclosed above, investors may negotiate with the distributors for lower charges.

Please note that investors investing via EPF Members Investment Scheme will only be charged a maximum Application Fee of 3% of the NAV per unit.

26

This table describes the other charges that you may directly incur when you redeem / transact units of the Funds.

Withdrawal Fee (% of the NAV per unit)

Dilution fee/ transaction cost factor

Switching

Fee

(RM)

Transfer Fee

(RM)

Other charges payable

directly by investors

when purchasing or

redeeming units

Equity Funds

CIMB Islamic DALI Equity Growth Fund Nil Nil

CIMB Islamic DALI Equity Fund Nil Nil

CIMB Islamic DALI Equity Theme Fund Nil Nil

CIMB Islamic Equity Fund Nil Nil

CIMB Islamic Equity Aggressive Fund Nil Nil

CIMB Islamic Small Cap Fund Nil Nil

Mixed Asset Funds

CIMB Islamic Balanced Fund Nil Nil

CIMB Islamic Balanced Growth Fund Nil Nil


CIMB Islamic Enhanced Sukuk Fund Nil Nil

CIMB Islamic Sukuk Fund Nil Nil




CIMB Islamic Asia Pacific Equity Fund Nil Nil

CIMB Islamic Greater China Equity Fund Nil Nil


Nil Nil

CIMB Islamic Global Equity Fund Nil Nil


Nil Nil

CIMB Islamic Kausar Lifecycle Funds*

Up to 1%

(Please refer to page 105 for

the full schedule of Withdrawal

Fees)

Nil

Since switching is treated as a

withdrawal from one (1) fund and

an investment into another fund, you will be charged a

Switching Fee equal to the

difference (if any) between the

Application Fees of these two (2) funds. Switching Fee will not be charged if the

fund to be switched into has

a lower Application Fee. In addition, the

Manager imposes a RM100

administrative fee for every switch made out of a

Fund. However, this RM100

administrative fee is waived for the

first four (4) switches out of a

Fund in every calendar year.

The Manager also has the discretion

to waive the Switching Fee

and/or administrative

fees.

For details please refer to page 105.

A maximum

of RM50.00 may be

charged for each

transfer.

Any applicable bank charges

and other bank fees incurred as a result of an investment

or a redemption will

be borne by the investor.

* No Switching Fee will be charged for switches within the CIMB Islamic Kausar Lifecycle Funds.

Please note: Switching into another fund is ultimately at the investor’s personal choice and option. However, Muslim investors are encouraged to switch into any other Shariah-compliant fund rather than into any other conventional fund as it is not permitted from the Shariah perspective.

27

This table describes the fees that you may indirectly incur when you invest in the Funds.

Management Fee

(% p.a. of the NAV of the

Fund)

[See NOTE 1]

Trustee Fee

(% p.a. of the NAV of the Fund)

[See NOTE 1]

Local

custodian fee

Foreign

custodian fee

Fund expenses

[See NOTE 4]

Other fees payable

indirectly by investors

Commissions

Equity Funds

CIMB Islamic DALI Equity Growth Fund

1.50 0.08 Nil Nil

CIMB Islamic DALI Equity Fund

1.85 0.06* Nil NOTE 3

CIMB Islamic DALI Equity Theme Fund

1.50 0.08* NOTE 2 Nil

CIMB Islamic Equity Fund

1.50 0.06* Nil NOTE 3

CIMB Islamic Equity Aggressive Fund

1.50 0.10 NOTE 2 Nil

CIMB Islamic Small Cap Fund

1.85 0.06* Nil Nil

Mixed Asset Funds

CIMB Islamic Balanced Fund

1.50 0.10** Nil NOTE 3

CIMB Islamic Balanced Growth Fund

1.50 0.07* NOTE 2 Nil


CIMB Islamic Enhanced Sukuk Fund

1.00 0.07* NOTE 2 Nil

CIMB Islamic Sukuk Fund

0.95 0.06* Nil Nil

CIMB Islamic Money Market Fund

0.50 0.08* NOTE 2 Nil

CIMB Islamic Deposit Fund

0.45 0.08* Nil Nil


CIMB Islamic Asia Pacific Equity Fund

1.80 0.07* NOTE 2 NOTE 3

CIMB Islamic Greater China Equity Fund

1.85 0.08* NOTE 2 NOTE 3


1.85 0.08* NOTE 2 NOTE 3

CIMB Islamic Global Equity Fund

1.85 0.08* NOTE 2 NOTE 3


1.85 0.08* NOTE 2 NOTE 3

CIMB Islamic Kausar Lifecycle Funds

1.80 0.08* NOTE 2 NOTE 3

Only expenses that are directly

related to the Funds

can be charged to the Funds. Examples of relevant expenses are audit fee and

tax agent’s

fee.

Save for NOTE 5,

there are no other fees payable

indirectly by investors.

Up to 100% of the Application

Fee may be payable as

commissions to Approved

Distributors. For Funds that do not

charge any Application Fee,

the Manager may pay a service fee as a portion from the Management Fee to Approved Distributors who provide ongoing service to you.

* Subject to a minimum fee of RM18,000 per annum. ** Subject to a minimum fee of RM35,000 per annum NOTE 1 - The annual Management Fee and the annual Trustee Fee are accrued daily based on the NAV of the Fund and paid

monthly. NOTE 2 - The Trustee Fee includes the local custodian fee but excludes the foreign sub-custodian fee (if any). NOTE 3 - Foreign custodian fee (applicable to IEF only)

28

The foreign custodian fee ranges from a minimum of 0.01% p.a. to a maximum of 0.38% p.a. of the NAV of the foreign portfolio, depending on the country invested, and is charged monthly in arrears, subject to a minimum fee of USD1,500 per month.

Foreign custodian fee (applicable to DALI2 & IBF only)

The foreign custody charges (safekeeping fee and transaction fee, including out of pocket charges) are subject to a minimum of USD500 per month per fund and are charged monthly in arrears. The safekeeping fee ranges from a minimum of 0.04% p.a. to a maximum of 0.38% p.a. of the market value of the respective foreign portfolio, depending on the country invested. The transaction fee is charged for every transaction and the amount is dependent on the country invested.

Foreign custodian fee (applicable to IAEF, IGEMEF, IGEF, IGCEF, ICEF & ILF only) The foreign sub-custodian fee is dependant on the country invested and is charged monthly in arrears. NOTE 4 - For CIMB Islamic Small Cap Fund, CIMB Islamic Sukuk Fund, CIMB Islamic DALI Equity Fund, CIMB Islamic

Equity Fund and CIMB Islamic Balanced Fund, the Shariah Adviser’s fee is borne equally between the Manager and the Fund.

NOTE 5 - An anti dilution levy may be charged in relation to a Fund’s applications for units in collective investment schemes

managed by other fund managers.

Transaction information

Regular Savings Plan (RSP)^

Minimum initial

investment (RM)

Minimum additional

investment (RM)

Minimum withdrawal

Minimum balance (units)

Minimum initial

investment (RM)

Minimum additional investment

(RM)

Equity Funds


500 200 RM200 or 200 units

250 500 200


500 200 RM200 or 200 units

250 500 200


500 200 RM200 or 800 units

1,000 500 200


500 200 RM200 or 400 units

500 500 200


500 200 RM200 or 200 units

250 500 200


500 200 RM200 or 400 units

500 500 200

Mixed Asset Funds


500 200 RM200 or 400 units

500 500 200


500 200 RM200 or 400 units

500 500 200



2,000 500 RM500 or 500 units

1,000 1,000 500


2,000 500 RM500 or 500 units

1,000 1,000 500


10,000 1,000 RM1,000 or 1,000 units

5,000 N/A N/A


10,000 1,000 RM1,000 5,000 1,000 1,000



500 200 RM200 or 400 units

500 500 200


500 200 RM200 or 800 units

1,000 500 200

CIMB Islamic Global 500 200 RM200 or 500 500 200

29


Minimum initial

investment (RM)

Minimum additional

investment (RM)

Minimum withdrawal


Minimum initial

investment (RM)


(RM)

Emerging Markets Equity Fund

400 units


500 200 RM200 or 400 units

500 500 200


500 200 RM200 or 800 units

1,000 500 200


500 200 RM200 or 400 units

500 500 200

^ The Regular Savings Plan (RSP) allows you to make regular monthly investments directly from your account held with a bank

approved by CIMB-Principal or Approved Distributor. Note: � Currently the EPF does not allow withdrawals for investments into these Funds. As and when the EPF should allow such

investments, EPF withdrawals for investments into such Funds may be made. The minimum initial investment for EPF Members Investment Scheme shall be RM1,000 or as per the amount stated under the

Minimum initial investment column, whichever is higher. The list of Funds that is allowed under the EPF Members Investment Scheme will be updated on the website at http://www.cimb-principal.com.my as and when EPF revises the list. Alternatively, you may contact our Customer Care Centre at (03) 7718 3100 for further information.

� The Manager reserves the right to change the above stipulated amounts from time to time. � There is no restriction on the frequency of withdrawals. � There is no exit and re-entry option.

Minimum Switching Amount Transfer facility

Cooling-off period

Equity Funds







Mixed Asset Funds














CIMB Islamic Kausar Lifecycle Funds*

Switching will be conducted based on the value of your investment in a Fund at the point of switching. The minimum amount

for a switch must be equivalent to the minimum withdrawal amount applicable to

a Fund or such other amount as the Manager may from time to time decide.

Please note that the minimum amount for a switch must also meet the minimum

initial investment amount or the minimum additional investment amount (as the case

may be) applicable to the fund to be switched into. Unit holders must at all times maintain at least the minimum

balance required for a Fund (please refer to “Withdrawals” and “Minimum balance”

in pages 113 - 114) to stay invested in that Fund. The Manager may, at its absolute

discretion, allow switching into (or out of) a Fund, either generally (for all Unit holders)

or specifically (for any particular Unit holder).

Generally, transfer of unit holdings is

allowed.

Six (6) Business Days from the

date the application form is received and accepted by the

Manager or Approved

Distributor for the first time.

For details please refer to

page 114.

* Switching is allowed: � within the CIMB Islamic Kausar Lifecycle Funds; and � from other Funds into any of the CIMB Islamic Kausar Lifecycle Funds.

Subject always to the Manager’s absolute discretion, switching out from any of the CIMB Islamic Kausar Lifecycle Funds into other Funds is not allowed.

30

Other information

Deeds This table describes the master deed and supplemental master deed (if any) governing the Funds.

Master Deed and Supplemental Master Deed (if any)

Equity Funds







Mixed Asset Funds















Master Deed dated 15th May 2008, a First Supplemental Master Deed dated 26th May 2008, a Second Supplemental Master Deed dated 5th June 2008, a Third Supplemental Master Deed dated 25th June 2008, a Fourth Supplemental Master Deed dated 25th June 2008, a Fifth Supplemental Master Deed dated 25th June 2008, a Sixth Supplemental Master Deed dated 14th July 2008, a Seventh Supplemental Master Deed dated 19th

November 2008, a Eighth Supplemental Master Deed dated 26th December 2008, a Ninth Supplemental Master Deed dated 21st April 2009,

a Tenth Supplemental Master Deed dated 23rd July 2009 , an Eleventh Supplemental Master Deed dated 1st December 2009 and a Twelfth

Supplemental Master Deed dated 14th June 2010.

Avenues for advice available to prospective investors If you have any questions about the information in this Master Prospectus (Shariah-compliant Funds) or would like to know more about investing in any of the Funds, please call CIMB-Principal Customer Care Centre at (03) 7718 3100 between 8:30 a.m. and 5:30 p.m. (Malaysian time), Mondays to Fridays (except on Selangor public holidays) or you can email us at [email protected].

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 on page 31. Past performance of the Fund is not an indication of its future performance.

31

Risk Factors

General risks of investing in unit trust funds Any investment carries with it an element of risk. Therefore, prior to making an investment, prospective investors should consider the following risk factors in addition to the other information set out elsewhere in this Master Prospectus (Shariah-compliant Funds). 1. Returns Not Guaranteed

Investors should be aware that by investing in a unit trust fund, there is NO GUARANTEE of any income distribution, returns or capital appreciation. In addition, there is a possibility that the investment objectives of the Funds may not be achieved. However, the Manager endeavours to minimize this risk by ensuring diligent management of the money based on their structured investment process.

2. General Market Risk

Any purchase of securities will involve some element of risk. Hence, a unit trust fund may be prone to changing market conditions as a result of: � global, regional or national economic conditions; � governmental policies or political progression; � development in regulatory framework, law and legal issues; � general movements in interest rate*; � broad investor sentiment; and � external shocks (i.e. natural disasters, war and etc.)

In addition, the following risk factors should also be considered: � Security specific risk

There are many specific risks, which apply to the individual security. Some examples include the potential for a company to default on the payment of the profit and/or principal, and the implications of a company’s credit rating being downgraded. All these risks may be detrimental to the value of the security. As a move to mitigate all these specific security risks, the Manager will perform continuous fundamental research and analysis to assist in security selection to ensure diversification is provided in the portfolio and to reduce the volatility, and hence the risk in the portfolio.

� Liquidity risk

Liquidity risk can be defined as the ease with which a security can be sold at or near its fair value depending on the volume traded in the market. If a security encounters a liquidity crunch, the security may need to be sold at a discount to the market fair value of the security. This in turn would depress the NAV and/or growth of the fund. Generally, all investments are subject to a certain degree of liquidity risk depending on the nature of the investment instruments, market, sector, and other factors. For the funds with more apparent liquidity risk, the Manager will continuously conduct research and analysis work to actively manage the asset allocations.

� Inflation risk

Inflation risk is the risk of potential loss in the purchasing power of your investment due to a general increase of consumer prices. Inflation erodes the real rate of your return, that is, the return after you take away the inflation rate. The inflation rate is commonly reported using the Consumer Price Index. Inflation is thus one of the major risks to investors over a long-term period and results in uncertainty over the future value of investments. Thus, Sukuk are exposed to higher inflation risk than equities in a rising inflationary environment. This risk can be minimised by investing in securities that can provide positive real rate of return.

All these may result in uncertainties and fluctuations in the price of the underlying securities of the funds’ investment portfolio. Such movements in the underlying values of the securities will cause the NAV or prices of units to fall as well as rise, and income produced by a unit trust fund may also fluctuate. The market risk can be managed by ensuring a rigorous review of macroeconomic trends by the fund management team to determine investments in markets that are not highly correlated and/or employing active asset allocation management. * The Funds do not invest in interest bearing instruments; the interest rate referred herein is to the general interest rate of the country which may affect the value of the investments of the Funds.

3. Loan Financing Risk

If a loan is obtained to finance the purchases of units of any unit trust fund, investors will need to understand that: � borrowing increases the possibility for gains as well as losses; � if the value of the investment falls below a certain level, investors may be asked by the financial institution to top up the

collateral or reduce the outstanding loan amount to the required level; � the borrowing cost may vary over time depending on the fluctuations in interest rates; and � the risks of using loan financing in light of investors’ investment objectives, attitude towards risk and financial

circumstances should be carefully assessed. Unit Trust Loan Financing Risk Disclosure Statement Form annexed as Appendix I hereto sets out the risks in detail.

4. Risk of Non-Compliance

This refers to the current and prospective risk to the unit trust fund and the investors’ interest arising from non-conformance with laws, rules, regulations, prescribed practices and internal policies and procedures by the Manager. This risk may also occur indirectly due to legal risk, which is the risk of circumstances from the imposition and/or amendment on the relevant regulatory frameworks, laws, rules and other legal practices affecting the fund. Non-compliance may result in a fall in the value

32

of a fund. In order to mitigate this risk, the Manager has in place stringent internal controls and compliance monitoring processes.

5. Manager’s Risk

The performance of any funds is dependent amongst others on the experience, knowledge, expertise and investment techniques/process adopted by the Manager and any lack of the above would have an adverse impact on the fund’s performance thereby working to the detriment of unit holders. Investors should also note that the quality of the fund’s management are also affected by internal circumstances within the management company such operational and system matters. Although the occurrence of such events is very unlikely, the Manager seeks to reduce this risk by implementing a consistent and structured investment process, systematic operational procedures and processes along with stringent internal control.

6. Reclassification of Shariah status risk

This risk refers to the risk that the currently held Shariah-compliant securities in the portfolio of Shariah-compliant funds may be reclassified to be non Shariah-compliant in the periodic review of the securities by the Shariah Advisory Council (SAC) of the SC, the Shariah Adviser or the Shariah Boards of the relevant Islamic indices or other relevant Shariah adviser. If this occurs, the value of the fund may be adversely affected and the Manager will take the necessary steps to dispose of such securities in accordance with the advice from the Shariah Adviser.

Specific risks associated with the investment portfolio of the Funds There are specific risks associated with the investment portfolio of each fund. The following are the key ones but not limited to those described below:

SECTION 1: EQUITY FUNDS 1.1 CIMB Islamic DALI Equity Growth Fund Stock specific risk Any irregular fluctuation of the value of a particular stock may affect the unit price. The impact is however minimized as the Fund invests in a wide portfolio of investments, thus spreading the element of risk. Company specific risk There are many specific risks which apply to individual companies that may affect the growth of a Fund. Examples include the possible effect on a company of losing a key executive or the unforeseen entry of a new competitor into the market or the implications of a company’s credit rating being downgraded. As a consequence, the price of any issuance by that company may fall and subsequently may also affect the growth of the overall Fund. The Manager aims to reduce all these risks by using diversification that is expected to reduce the volatility as well as the risk for the Fund’s portfolio. In addition, the Manager will also perform continuous fundamental research and analysis to aid its active asset allocation management.

1.2 CIMB Islamic DALI Equity Fund Stock specific risk Any irregular fluctuation of the value of a particular stock may affect the unit price. The impact is however minimized as the Fund invests in a wide portfolio of investments, thus spreading the element of risk. Company specific risk There are many specific risks which apply to individual companies that may affect the growth of a Fund. Examples include the possible effect on a company of losing a key executive or the unforeseen entry of a new competitor into the market or the implications of a company’s credit rating being downgraded. As a consequence, the price of any issuance by that company may fall and subsequently may also affect the growth of the overall Fund. The Manager or its fund management delegate aims to reduce all these risks by using diversification that is expected to reduce the volatility as well as the risk for the Fund’s portfolio. In addition, the Manager or its fund management delegate will also perform continuous fundamental research and analysis to aid its active asset allocation management. Country risk When a Fund invests in foreign markets, the foreign investment portion of the Fund may be affected by risks specific to the countries in which it invests. Such risks include changes in the country’s economic fundamentals, social and political stability, currency movements and foreign investments policies. These factors may have impact on the prices of the Fund’s investment in that country and consequently may also affect the fund’s NAV and its growth. In particular, as this Fund may invest in emerging markets in Asia, such investments generally entail greater risk than investing in assets from the markets of industrialised countries. Emerging markets are markets that are by definition, “in a state of transition” and are therefore exposed to rapid political change and economic declines. During the past few years, there have been significant political, economic and societal changes in many emerging market countries which can influence investor confidence and in turn have a negative effect on exchange rates, security prices or other assets in these emerging markets. Moreover, the markets in emerging market countries are frequently characterised by illiquidity in the form of low turnover of some of the listed securities. To mitigate these risks, the Manager or its fund management delegate will select securities and collective investment schemes that spread across various countries within its portfolio in an attempt to avoid such events. The decision on diversification will be based on its constant fundamental research and analysis on the global markets. Currency risk This risk is associated with investments that are quoted and/or priced in foreign currency denomination. Malaysian based investors should be aware that if the Malaysian Ringgit appreciates against the currencies in which the portfolio of the investment is

33

denominated, this will have an adverse effect on the NAV of the Fund and vice versa. Investors should note that any gains or losses arising from the movement of the foreign currencies against its home currency may therefore increase/decrease the capital gains of the investment. Nevertheless, investors should realise that currency risk is considered as one of the major risks to investments in foreign assets due to the volatile nature of the foreign exchange market. The Manager or its fund management delegate could utilise two pronged approaches in order to mitigate the currency risk; firstly, by spreading the investments across differing currencies (i.e. diversification) and secondly, by hedging the currencies when it is deemed necessary.

1.3 CIMB Islamic DALI Equity Theme Fund Stock specific risk Any irregular fluctuation of the value of a particular stock may affect the unit price. The impact is however minimized as the Fund invests in a wide portfolio of investments, thus spreading the element of risk. Company specific risk There are many specific risks which apply to individual companies that may affect the growth of a Fund. Examples include the possible effect on a company of losing a key executive or the unforeseen entry of a new competitor into the market or the implications of a company’s credit rating being downgraded. As a consequence, the price of any issuance by that company may fall and subsequently may also affect the growth of the overall Fund. The Manager aims to reduce all these risks by using diversification that is expected to reduce the volatility as well as the risk for the Fund’s portfolio. In addition, the Manager will also perform continuous fundamental research and analysis to aid its active asset allocation management. Sector risk Stock prices of companies within a sector or industry move together due to sector-specific causal factors, examples of which include business cycle dynamics, key sector or industry earnings' driver trend, demographic or consumer demand changes, new technology or product introduction, government policies or regulatory changes and international events. As this Fund will focus its investments within specific sectors that are related to the prevailing investment themes, its returns are strongly dependent on the impact of such sector-specific causal factors. These causal factors that drive sector-specific returns lead to sector-specific risks. The Manager will however, endeavour to minimize such risks by investing in a portfolio that diversifies the Fund's assets within that sector and conform to the Shariah principles. This is expected to reduce the volatility as well as the risk for the Fund’s portfolio.

1.4 CIMB Islamic Equity Fund Stock specific risk Any irregular fluctuation of the value of a particular stock may affect the unit price. The impact is however minimized as the Fund invests in a wide portfolio of investments, thus spreading the element of risk. Company specific risk There are many specific risks which apply to individual companies that may affect the growth of a Fund. Examples include the possible effect on a company of losing a key executive or the unforeseen entry of a new competitor into the market or the implications of a company’s credit rating being downgraded. As a consequence, the price of any issuance by that company may fall and subsequently may also affect the growth of the overall Fund. The Manager or its fund management delegate aims to reduce all these risks by using diversification that is expected to reduce the volatility as well as the risk for the Fund’s portfolio. In addition, the Manager will also perform continuous fundamental research and analysis to aid its active asset allocation management. Country risk When a Fund invests in foreign markets, the foreign investment portion of the Fund may be affected by risks specific to the countries in which it invests. Such risks include changes in the country’s economic fundamentals, social and political stability, currency movements and foreign investments policies. These factors may have impact on the prices of the Fund’s investment in that country and consequently may also affect the fund’s NAV and its growth. In particular, as this Fund may invest in emerging markets in Asia, such investments generally entail greater risk than investing in assets from the markets of industrialised countries. Emerging markets are markets that are by definition, “in a state of transition” and are therefore exposed to rapid political change and economic declines. During the past few years, there have been significant political, economic and societal changes in many emerging market countries which can influence investor confidence and in turn have a negative effect on exchange rates, security prices or other assets in these emerging markets. Moreover, the markets in emerging market countries are frequently characterised by illiquidity in the form of low turnover of some of the listed securities. To mitigate these risks, the Manager or its fund management delegate will select securities and collective investment schemes that spread across various countries within its portfolio in an attempt to avoid such events. The decision on diversification will be based on its constant fundamental research and analysis on the global markets. Currency risk This risk is associated with investments that are quoted and/or priced in foreign currency denomination. Malaysian based investors should be aware that if the Malaysian Ringgit appreciates against the currencies in which the portfolio of the investment is denominated, this will have an adverse effect on the NAV of the Fund and vice versa. Investors should note that any gains or losses arising from the movement of the foreign currencies against its home currency may therefore increase/decrease the capital gains of the investment. Nevertheless, investors should realise that currency risk is considered as one of the major risks to investments in foreign assets due to the volatile nature of the foreign exchange market. The Manager or its fund management delegate could utilise two pronged approaches in order to mitigate the currency risk; firstly, by spreading the investments across differing currencies (i.e. diversification) and secondly, by hedging the currencies when it is deemed necessary. 1.5 CIMB Islamic Equity Aggressive Fund Stock specific risk Any irregular fluctuation of the value of a particular stock may affect the unit price. The impact is however minimized as the Fund invests in a wide portfolio of investments, thus spreading the element of risk.

34

Company specific risk There are many specific risks which apply to individual companies that may affect the growth of a Fund. Examples include the possible effect on a company of losing a key executive or the unforeseen entry of a new competitor into the market or the implications of a company’s credit rating being downgraded. As a consequence, the price of any issuance by that company may fall and subsequently may also affect the growth of the overall Fund. The Manager aims to reduce all these risks by using diversification that is expected to reduce the volatility as well as the risk for the Fund’s portfolio. In addition, the Manager will also perform continuous fundamental research and analysis to aid its active asset allocation management.

1.6 CIMB Islamic Small Cap Fund Stock specific risk Any irregular fluctuation of the value of a particular stock may affect the unit price. The impact is however minimized as the Fund invests in a wide portfolio of investments, thus spreading the element of risk. Company specific risk There are many specific risks which apply to individual companies that may affect the growth of a Fund. Examples include the possible effect on a company of losing a key executive or the unforeseen entry of a new competitor into the market or the implications of a company’s credit rating being downgraded. As a consequence, the price of any issuance by that company may fall and subsequently may also affect the growth of the overall Fund. The Manager aims to reduce all these risks by using diversification that is expected to reduce the volatility as well as the risk for the Fund’s portfolio. In addition, the Manager will also perform continuous fundamental research and analysis to aid its active asset allocation management. Liquidity risk Liquidity risk is defined as the ease with which a security can be sold at or near its fair value depending on the volume traded on the market. There is additional liquidity risk when investing in this Fund as it invests primarily in smaller capitalised companies that are listed on Bursa Malaysia. As the Fund’s NAV grows larger, there may be insufficient securities of quality small sized companies as a larger number of these securities are required to be acquired or disposed before there is any impact on the Fund. In addition, the acquisition and disposal of such securities may take a longer time as there are generally less ready buyers or sellers as compared to the securities of larger, more established companies. The effect will be further compounded if the market is hit by an external shock such as political upheaval, natural disaster etc. Liquidity of the market for these securities will be affected and may cause difficulties for the Manager to dispose or acquire such securities at or near fair value. Although these problems may be magnified as the Fund size grows as an active fund manager, the Manager employs consistent fundamental research and analysis to ensure the feasibility of its management.

SECTION 2: MIXED ASSET FUNDS 2.1 CIMB Islamic Balanced Fund Stock specific risk Any irregular fluctuation of the value of a particular stock may affect the unit price. The impact is however minimized as the Fund invests in a wide portfolio of investments, thus spreading the element of risk. Company specific risk There are many specific risks which apply to individual companies that may affect the growth of a Fund. Examples include the possible effect on a company of losing a key executive or the unforeseen entry of a new competitor into the market or the implications of a company’s credit rating being downgraded. As a consequence, the price of any issuance by that company may fall and subsequently may also affect the growth of the overall Fund. The Manager or its fund management delegate aims to reduce all these risks by using diversification that is expected to reduce the volatility as well as the risk for the Fund’s portfolio. In addition, the Manager or its fund management delegate will also perform continuous fundamental research and analysis to aid its active asset allocation management. Counterparty risk When a Fund conducts OTC transactions and placement of deposit with the counterparty, it may be exposed to risks relating to the credit standing of its counterparties and their ability to fulfil the conditions of the contracts it enters into with them. Hence, it is generally not applicable to transactions performed through exchanges. The Manager or its fund management delegate aims to mitigate this risk by performing fundamental credit research and analysis to determine the creditworthiness of its counterparty and impose a credit limit as a precautionary step to limit any loss that may arise directly or indirectly as a result of a defaulted transaction. Credit/Default risk Investment in Sukuk may involve a certain degree of credit/default risk with regards to the issuers. Generally, credit risk or default risk is the risk of loss due to the issuer’s non payment or untimely payment of the investment amount as well as the returns on investment. This will cause a decline in value of the defaulted Sukuk and subsequently depress the NAV of the Fund. Usually credit risk is more apparent for an investment with a longer tenure, i.e. the longer the duration, the higher the credit risk. Credit risk can be managed by performing continuous fundamental credit research and analysis to ascertain the creditworthiness of its issuer. In addition, the Manager or its fund management delegate imposes a minimum rating requirement as rated by either local and/or foreign rating agencies and manages the duration of the investment in accordance with the objective of the Fund. For this Fund, the Sukuk investment must satisfy a minimum rating requirement of at least “BBB3” or “P2” by RAM or equivalent rating by MARC; “BB” by S&P or equivalent rating by Moody’s or Fitch. Interest rate risk In general, when interest rates rise, Sukuk prices will tend to fall and vice versa. Therefore, the NAV of the Fund may also tend to fall when interest rates rise or are expected to rise. However, investors should be aware that should the Fund hold a Sukuk till maturity, such price fluctuations would dissipate as it approaches maturity, and thus the growth of the NAV shall not be affected at

35

maturity. In order to mitigate interest rates exposure of the Fund, the Manager or its fund management delegate will manage the duration of the portfolio via shorter or longer tenured assets depending on the view of the future interest rate trend of the Manager or its fund management delegate, which is based on its continuous fundamental research and analysis. Please note that although Sukuk is a non-interest bearing instrument, its price movement is correlated to the movement in the interest rates. As such, investment in Sukuk will have an exposure to interest rates. Even though the Fund does not invest in interest bearing instruments, the interest rate referred herein is to the general interest rate of the country which may affect the value of the investment of the Fund. Country risk When a Fund invests in foreign markets, the foreign investment portion of the Fund may be affected by risks specific to the countries in which it invests. Such risks include changes in the country’s economic fundamentals, social and political stability, currency movements and foreign investments policies. These factors may have impact on the prices of the Fund’s investment in that country and consequently may also affect the fund’s NAV and its growth. In particular, as this Fund may invest in emerging markets in Asia, such investments generally entail greater risk than investing in assets from the markets of industrialised countries. Emerging markets are markets that are by definition, “in a state of transition” and are therefore exposed to rapid political change and economic declines. During the past few years, there have been significant political, economic and societal changes in many emerging market countries which can influence investor confidence and in turn have a negative effect on exchange rates, security prices or other assets in these emerging markets. Moreover, the markets in emerging market countries are frequently characterised by illiquidity in the form of low turnover of some of the listed securities. To mitigate these risks, the Manager or its fund management delegate will select securities and collective investment schemes that spread across various countries within its portfolio in an attempt to avoid such events. The decision on diversification will be based on its constant fundamental research and analysis on the global markets. Currency risk This risk is associated with investments that are quoted and/or priced in foreign currency denomination. Malaysian based investors should be aware that if the Malaysian Ringgit appreciates against the currencies in which the portfolio of the investment is denominated, this will have an adverse effect on the NAV of the Fund and vice versa. Investors should note that any gains or losses arising from the movement of the foreign currencies against its home currency may therefore increase/decrease the capital gains of the investment. Nevertheless, investors should realise that currency risk is considered as one of the major risk to investments in foreign assets due to the volatile nature of the foreign exchange market. The Manager or its fund management delegate could utilise two pronged approaches in order to mitigate the currency risk; firstly, by spreading the investments across differing currencies (i.e. diversification) and secondly, by hedging the currencies when it is deemed necessary.

2.2 CIMB Islamic Balanced Growth Fund Credit/Default risk Investment in Sukuk may involve a certain degree of credit/default risk with regards to the issuers. Generally, credit risk or default risk is the risk of loss due to the issuer’s non payment or untimely payment of the investment amount as well as the returns on investment. This will cause a decline in value of the defaulted Sukuk and subsequently depress the NAV of the Fund. Usually credit risk is more apparent for an investment with a longer tenure, i.e. the longer the duration, the higher the credit risk. Credit risk can be managed by performing continuous fundamental credit research and analysis to ascertain the creditworthiness of its issuer. In addition, the Manager imposes a minimum rating requirement as rated by either local and/or foreign rating agencies and manages the duration of the investment in accordance with the objective of the Fund. For this Fund, the Sukuk investment must satisfy a minimum rating requirement of at least “BBB3” or “P2” by RAM or equivalent rating by MARC; “BBB” by S&P or equivalent rating by Moody’s or Fitch. Interest rate risk In general, when interest rates rise, Sukuk prices will tend to fall and vice versa. Therefore, the NAV of the Fund may also tend to fall when interest rates rise or are expected to rise. However, investors should be aware that should the Fund hold a Sukuk till maturity, such price fluctuations would dissipate as it approaches maturity, and thus the growth of the NAV shall not be affected at maturity. In order to mitigate interest rates exposure of the Fund, the Manager will manage the duration of the portfolio via shorter or longer tenured assets depending on the view of the future interest rate trend of the Manager, which is based on its continuous fundamental research and analysis. Please note that although Sukuk is a non-interest bearing instrument, its price movement is correlated to the movement in the interest rates. As such, investment in Sukuk will have an exposure to interest rates. Even though the Fund does not invest in interest bearing instruments, the interest rate referred herein is to the general interest rate of the country which may affect the value of the investment of the Fund. Counterparty risk When a Fund conducts OTC transactions, it may be exposed to risks relating to the credit standing of its counterparties and their ability to fulfil the conditions of the contracts it enters into with them. Hence, it is generally not applicable to transactions performed through exchanges. The Manager aims to mitigate this risk by performing fundamental credit research and analysis to determine the creditworthiness of its counterparty and impose a credit limit as a precautionary step to limit any loss that may arise directly or indirectly as a result of a defaulted transaction. Company specific risk There are many specific risks which apply to individual companies that may affect the growth of a Fund. Examples include the possible effect on a company of losing a key executive or the unforeseen entry of a new competitor into the market or the implications of a company’s credit rating being downgraded. As a consequence, the price of any issuance by that company may fall and subsequently may also affect the growth of the overall Fund. The Manager aims to reduce all these risks by using diversification that is expected to reduce the volatility as well as the risk for the Fund’s portfolio. In addition, the Manager will also perform continuous fundamental research and analysis to aid its active asset allocation management.

36

Stock specific risk Any irregular fluctuation of the value of a particular stock may affect the unit price. The impact is however minimized as the Fund invests in a wide portfolio of investments, thus spreading the element of risk.

SECTION 3: FIXED INCOME & MONEY MARKET FUNDS 3.1 CIMB Islamic Enhanced Sukuk Fund Credit/Default risk Investment in Sukuk and Shariah-compliant securities may involve a certain degree of credit/default risk with regards to the issuers. Generally, credit risk or default risk is the risk of loss due to the issuer’s non payment or untimely payment of the investment amount as well as the returns on investment. This will cause a decline in value of the defaulted Sukuk and subsequently depress the NAV of the Fund. Usually credit risk is more apparent for an investment with a longer tenure, i.e. the longer the duration, the higher the credit risk. Credit risk can be managed by performing continuous fundamental credit research and analysis to ascertain the creditworthiness of its issuer. In addition, the Manager imposes a minimum rating requirement as rated by either local and/or foreign rating agencies and manages the duration of the investment in accordance with the objective of the Fund. For this Fund, the Sukuk investment must satisfy a minimum rating requirement of at least “BBB3” or “P2” by RAM or equivalent rating by MARC; “BBB” by S&P or equivalent rating by Moody’s or Fitch. Interest rate risk In general, when interest rates rise, Sukuk prices will tend to fall and vice versa. Therefore, the NAV of the Fund may also tend to fall when interest rates rise or are expected to rise. However, investors should be aware that should the Fund hold a Sukuk till maturity, such price fluctuations would dissipate as it approaches maturity, and thus the growth of the NAV shall not be affected at maturity. In order to mitigate interest rates exposure of the Fund, the Manager will manage the duration of the portfolio via shorter or longer tenured assets depending on the view of the future interest rate trend of the Manager, which is based on its continuous fundamental research and analysis. Please note that although Sukuk is a non-interest bearing instrument, its price movement is correlated to the movement in the interest rates. As such, investment in Sukuk will have an exposure to interest rates. Even though the Fund does not invest in interest bearing instruments, the interest rate referred herein is to the general interest rate of the country which may affect the value of the investment of the Fund. Counterparty risk When a Fund conducts OTC transactions and placement of deposit with the counterparty, it may be exposed to risks relating to the credit standing of its counterparties and their ability to fulfil the conditions of the contracts it enters into with them. Hence, it is generally not applicable to transactions performed through exchanges. The Manager aims to mitigate this risk by performing fundamental credit research and analysis to determine the creditworthiness of its counterparty and impose a credit limit as a precautionary step to limit any loss that may arise directly or indirectly as a result of a defaulted transaction. Stock specific risk Any irregular fluctuation of the value of a particular stock may affect the unit price. The impact is however minimized as the Fund invests in a wide portfolio of investments, thus spreading the element of risk. Company specific risk There are many specific risks which apply to individual companies that may affect the growth of a Fund. Examples include the possible effect on a company of losing a key executive or the unforeseen entry of a new competitor into the market or the implications of a company’s credit rating being downgraded. As a consequence, the price of any issuance by that company may fall, and subsequently may also affect the growth of the overall Fund. The Manager aims to reduce all these risks by using diversification that is expected to reduce the volatility as well as the risk for the Fund’s portfolio. In addition, the Manager will also perform continuous fundamental research and analysis to aid its active asset allocation management. Risks associated with investment in warrants/options As the Fund may invest in warrants/options, investors should note that there are inherent risks associated with it. Warrants/options are financial instruments that entitle the holder to the right but not the obligation to fulfil the requirements of a contract entered into within an agreed timeframe. Warrants/options have values that will change over time, but the change in the value of warrants/options need not be in the same manner as its underlying assets. The value of warrants/options are influenced by the current market price of the underlying security, the exercise price of the contract, the cost of holding a position in the underlying security, the time to expiration of the contract and the estimate of the future volatility of the underlying security’s price over the life of the contract. The buyer/holder of warrants/options will incur a cost (the premium) to purchase the warrants/options although the buyer/holder may not exercise the right prior to expiration. Like securities, the Manager will undertake fundamental research and analysis on these instruments to ensure that the risk to the portfolio is minimised.

3.2 CIMB Islamic Sukuk Fund Credit/Default risk Investment in Sukuk may involve a certain degree of credit/default risk with regards to the issuers. Generally, credit risk or default risk is the risk of loss due to the issuer’s non payment or untimely payment of the investment amount as well as the returns on investment. This will cause a decline in value of the defaulted Sukuk and subsequently depress the NAV of the Fund. Usually credit risk is more apparent for an investment with a longer tenure, i.e. the longer the duration, the higher the credit risk. Credit risk can be managed by performing continuous fundamental credit research and analysis to ascertain the creditworthiness of its issuer. In addition, the Manager imposes a minimum rating requirement as rated by either local and/or foreign rating agencies and manages the duration of the investment in accordance with the objective of the Fund. For this Fund, the Sukuk investment must satisfy a minimum rating requirement of at least “BBB3” or “P2” by RAM or equivalent rating by MARC; “BBB” by S&P or equivalent rating by Moody’s or Fitch.

37

Interest rate risk In general, when interest rates rise, Sukuk prices will tend to fall and vice versa. Therefore, the NAV of the Fund may also tend to fall when interest rates rise or are expected to rise. However, investors should be aware that should the Fund hold a Sukuk till maturity, such price fluctuations would dissipate as it approaches maturity, and thus the growth of the NAV shall not be affected at maturity. In order to mitigate interest rates exposure of the Fund, the Manager will manage the duration of the portfolio via shorter or longer tenured assets depending on the view of the future interest rate trend of the Manager, which is based on its continuous fundamental research and analysis. Please note that although Sukuk is a non-interest bearing instrument, its price movement is correlated to the movement in the interest rates. As such, investment in Sukuk will have an exposure to interest rates. Even though the Fund does not invest in interest bearing instruments, the interest rate referred herein is to the general interest rate of the country which may affect the value of the investment of the Fund. Counterparty risk When a Fund conducts OTC transactions, it may be exposed to risks relating to the credit standing of its counterparties and their ability to fulfil the conditions of the contracts it enters into with them. Hence, it is generally not applicable to transactions performed through exchanges. The Manager aims to mitigate this risk by performing fundamental credit research and analysis to determine the creditworthiness of its counterparty, and impose a credit limit as a precautionary step to limit any loss that may arise directly or indirectly as a result of a defaulted transaction.

3.3 CIMB Islamic Money Market Fund Credit/Default risk Investment in Sukuk may involve a certain degree of credit/default risk with regards to the issuers. Generally, credit risk or default risk is the risk of loss due to the issuer’s non payment or untimely payment of the investment amount as well as the returns on investment. This will cause a decline in value of the defaulted Sukuk and subsequently depress the NAV of the Fund. Usually credit risk is more apparent for an investment with a longer tenure, i.e. the longer the duration, the higher the credit risk. Credit risk can be managed by performing continuous fundamental credit research and analysis to ascertain the creditworthiness of its issuer. In addition, the Manager imposes a minimum rating requirement as rated by either local and/or foreign rating agencies and manages the duration of the investment in accordance to the objective of the Fund. For this Fund, the Sukuk investment must satisfy a minimum rating requirement of at least “BBB3” or “P2” by RAM or equivalent rating by MARC; “BBB” by S&P or equivalent rating by Moody’s or Fitch. Interest rate risk In general, when interest rates rise, Sukuk prices will tend to fall and vice versa. Therefore, the NAV of the Fund may also tend to fall when interest rates rise or are expected to rise. However, investors should be aware that should the Fund hold a Sukuk till maturity, such price fluctuations would dissipate as it approaches maturity, and thus the growth of the NAV shall not be affected at maturity. In order to mitigate interest rates exposure of the Fund, the Manager will manage the duration of the portfolio via shorter or longer tenured assets depending on the view of the future interest rate trend of the Manager, which is based on its continuous fundamental research and analysis. Please note that although Sukuk is a non-interest bearing instrument, its price movement is correlated to the movement in the interest rates. As such, investment in Sukuk will have an exposure to interest rates. Even though the Fund does not invest in interest bearing instruments, the interest rate referred herein is to the general interest rate of the country which may affect the value of the investment of the Fund. Counterparty risk When a Fund conducts OTC transactions, it may be exposed to risks relating to the credit standing of its counterparties and their ability to fulfil the conditions of the contracts it enters into with them. Hence, it is generally not applicable to transactions performed through exchanges. The Manager aims to mitigate this risk by performing fundamental credit research and analysis to determine the creditworthiness of its counterparty, and impose a credit limit as a precautionary step to limit any loss that may arise directly or indirectly as a result of a defaulted transaction. Investment in the Fund is not the same as placing funds in a deposit with a financial institution. There are risks involved and investors should rely on their own evaluation to assess the merits and risks when investing in the Fund.

3.4 CIMB Islamic Deposit Fund Default risk Generally, default risk is the risk of loss due to the issuer’s non payment or untimely payment of the investment amount as well as the returns on investment. This may lead to a default in the payment of principal and/or profit payment and ultimately a reduction in the value of the Fund. The Manager aims to mitigate this risk by performing fundamental credit research and analysis to determine the creditworthiness of its counterparty, and impose a credit limit as a precautionary step to limit any loss that may arise directly or indirectly as a result of a defaulted transaction. SECTION 4: REGIONAL & GLOBAL FUNDS 4.1 CIMB Islamic Asia Pacific Equity Fund Stock specific risk Any irregular fluctuation of the value of a particular stock may affect the unit price. The impact is however minimized as the Fund invests in a wide portfolio of investments, thus spreading the element of risk.

38

Company specific risk There are many specific risks which apply to individual companies that may affect the growth of a Fund. Examples include the possible effect on a company of losing a key executive or the unforeseen entry of a new competitor into the market or the implications of a company’s credit rating being downgraded. As a consequence, the price of any issuance by that company may fall and subsequently may also affect the growth of the overall Fund. The Manager or its fund management delegate aims to reduce all these risks by using diversification that is expected to reduce the volatility as well as the risk for the Fund’s portfolio. In addition, the Manager or its fund management delegate will also perform continuous fundamental research and analysis to aid its active asset allocation management. Country risk When a Fund invests in foreign markets, the foreign investment portion of the Fund may be affected by risks specific to the countries in which it invests. Such risks include changes in the country’s economic fundamentals, social and political stability, currency movements and foreign investments policies. These factors may have impact on the prices of the Fund’s investment in that country and consequently may also affect the fund’s NAV and its growth. In particular, as this Fund may invest in emerging markets in Asia, such investments generally entail greater risk than investing in assets from the markets of industrialised countries. Emerging markets are markets that are by definition, “in a state of transition” and are therefore exposed to rapid political change and economic declines. During the past few years, there have been significant political, economic and societal changes in many emerging market countries which can influence investor confidence and in turn have a negative effect on exchange rates, security prices or other assets in these emerging markets. Moreover, the markets in emerging market countries are frequently characterised by illiquidity in the form of low turnover of some of the listed securities. To mitigate these risks, the Manager or its fund management delegate will select securities and collective investment schemes that spread across various countries within its portfolio in an attempt to avoid such events. The decision on diversification will be based on its constant fundamental research and analysis on the global markets. Currency risk This risk is associated with investments that are quoted and/or priced in foreign currency denomination. Malaysian based investors should be aware that if the Malaysian Ringgit appreciates against the currencies in which the portfolio of the investment is denominated, this will have an adverse effect on the NAV of the Fund and vice versa. Investors should note that any gains or losses arising from the movement of the foreign currencies against its home currency may therefore increase/decrease the capital gains of the investment. Nevertheless, investors should realise that currency risk is considered as one of the major risks to investments in Shariah-compliant foreign assets due to the volatile nature of the foreign exchange market. The Manager or its fund management delegate could utilise two pronged approaches in order to mitigate the currency risk firstly, by spreading the investments across differing currencies (i.e. diversification) and secondly, by hedging the currencies when it is deemed necessary. Risks associated with investment in warrants/options As the Fund may invest in warrants/options, investors should note that there are inherent risks associated with it. Warrants/options are financial instruments that entitle the holder to the right but not the obligation to fulfil the requirements of a contract entered into within an agreed timeframe. Warrants/options have values that will change over time, but the change in the value of warrants/options need not be in the same manner as its underlying assets. The value of warrants/options are influenced by the current market price of the underlying security, the exercise price of the contract, the cost of holding a position in the underlying security, the time to expiration of the contract and the estimate of the future volatility of the underlying security’s price over the life of the contract. The buyer/holder of warrants/options will incur a cost (the premium) to purchase the warrants/options although the buyer/holder may not exercise the right prior to expiration. Like securities, the Manager or its fund management delegate will undertake fundamental research and analysis on these instruments to ensure that the risk to the portfolio is minimised. Counterparty risk The Fund’s placements of cash / deposits with financial institutions are subject to the risk of the counterparty. Counterparty risk also refers to the possibility that the counterparty of a securities or instruments will not be able to make timely payments of interest and / or principal repayment on the maturity date. This may lead to a default in the payment of principal and/or interest and ultimately a reduction in the value of the Fund.

4.2 CIMB Islamic Greater China Equity Fund Stock specific risk Any irregular fluctuation of the value of a particular stock may affect the unit price. The impact is however minimized as the Fund invests in a wide portfolio of investments, thus spreading the element of risk. Country risk When the Fund invests in foreign markets, the foreign investments portion of the Fund may be affected by risks specific to the country that it invests in. Such risks include changes in the country’s economic fundamentals, social and political stability, laws and regulations, currency movements and foreign investments policies. These factors may have impact on the prices of the Fund’s investment in that country and consequently may also affect the Fund’s NAV and its growth. To mitigate these risks, the Manager or its fund management delegate will select securities and collective investment schemes that spread across countries within its portfolio in an attempt to avoid such events. The decision on diversification will be based on its constant fundamental research and analysis on the global markets. Repatriation Risk Certain countries may impose limitations with respect to the Fund’s ability to repatriate investment income, capital or the proceeds of sales of securities. The Fund would be adversely affected by delays in, or a refusal to grant, any required governmental approval for repatriation of capital as well or the application of restrictions on investments to the Fund. Regulatory risk The Fund’s investments in such countries are also subject to regulatory risks, for example, the introduction of new laws, the imposition of exchange controls, the adoption of restrictive provisions by individual companies or where a limit on the holding of the Fund’s in a particular company, sector or country by non-residents (individually or collectively) has been reached.

39

Currency risk This risk is associated with investments that are quoted and/or priced in foreign currency denomination. Malaysian based investors should be aware that if the Malaysian Ringgit appreciates against the currencies in which the portfolio of the investment is denominated, this will have an adverse effect on the NAV of the Fund and vice versa. Investors should note that any gains or losses arising from the movement of the foreign currencies against its home currency may therefore increase/decrease the capital gains of the investment. Nevertheless, investors should realise that currency risk is considered as one of the major risks to investments in foreign assets due to the volatile nature of the foreign exchange market. The Manager or its fund management delegate could utilise a two pronged approach in order to mitigate the currency risk, firstly, by spreading the investments across differing currencies (i.e. diversification) and secondly, by hedging the currencies when it is deemed necessary. Liquidity risk Liquidity risk is defined as the ease with which a security can be sold at or near its fair value depending on the volume traded on the market. This is applicable to both listed and unquoted securities. Generally if the security encounters a liquidity crunch, the security may need to be sold at a discount to the fair value of the security. This in turn would depress the NAV growth of the Fund marginally. For purpose of this Fund, the Manager or its fund management delegate will attempt to balance the entire portfolio by investing in a mix of assets with satisfactory trading volumes and those that occasionally could encounter poor liquidity. This is expected to reduce the risks for the entire portfolio without limiting the Fund’s growth potentials. Counterparty risk The Fund’s placements of cash / deposits with financial institutions are subject to the risk of the counterparty. Counterparty risk also refers to the possibility that the counterparty of a securities or instruments will not be able to make timely payments of interest and / or principal repayment on the maturity date. This may lead to a default in the payment of principal and/or interest and ultimately a reduction in the value of the Fund.

4.3 CIMB Islamic Global Emerging Markets Equity Fund Stock specific risk Any irregular fluctuation of the value of a particular stock may affect the unit price. The impact is however minimized as the Fund invests in a wide portfolio of investments, thus spreading the element of risk. Country risk As the Fund invests in emerging markets, the value of the Fund’s assets may be affected by uncertainties within each individual emerging market country in which it invests, such as political developments, changes in government policies, nationalisation of industry, taxation issues, currency repatriation restrictions, other developments in the law or regulations of the countries in which the Fund may invest and, in particular, by changes in legislation relating to the level of foreign ownership in companies in some emerging countries. These factors may have an impact on the prices of the securities that the Fund invests in and depress the NAV growth. Currency risk This risk is associated with investments that are quoted and/or priced in foreign currency denomination. Malaysian based investors should be aware that if the Malaysian Ringgit appreciates against the currencies in which the portfolio of the investment is denominated, this will have an adverse effect on the NAV of the Fund and vice versa. Investors should note that any gains or losses arising from the movement of the foreign currencies against its home currency may therefore increase/decrease the capital gains of the investment. Nevertheless, investors should realise that currency risk is considered as one of the major risks to investments in Shariah-compliant foreign assets due to the volatile nature of the foreign exchange market. The Manager or its fund management delegate could utilise two pronged approaches in order to mitigate the currency risk; firstly, by spreading the investments across differing currencies (i.e. diversification) and secondly, by hedging the currencies when it is deemed necessary. Risks associated with investment in warrants/options As the Fund may invest in warrants/options, investors should note that there are inherent risks associated with it. Warrants/options are financial instruments that entitle the holder to the right but not the obligation to fulfil the requirements of a contract entered into within an agreed timeframe. Warrants/options have values that will change over time, but the change in the value of warrants/options need not be in the same manner as its underlying assets. The value of warrants/options are influenced by the current market price of the underlying security, the exercise price of the contract, the cost of holding a position in the underlying security, the time to expiration of the contract and the estimate of the future volatility of the underlying security’s price over the life of the contract. The buyer/holder of warrants/options will incur a cost (the premium) to purchase the warrants/options although the buyer/holder may not exercise the right prior to expiration. Like securities, the Manager or its fund management delegate will undertake fundamental research and analysis on these instruments to ensure that the risk to the portfolio is minimised. Liquidity risk Securities markets of countries other than those of developed countries, while growing in volume, have for the most part substantially less volume than those of developed countries. Many securities traded on these foreign markets are less liquid and their prices more volatile than securities of comparable markets in developed countries. In addition, settlement of trades in some emerging markets is much slower and more subject to failure than in developed country markets. There may also be less extensive regulation of the securities markets in emerging market countries than in developed countries. Stock market practices risk Many emerging markets have, at times, experienced periods of rapid growth and are less regulated than many of the world’s leading stock markets. In addition, market practice in relation to settlement of securities transactions and custody of assets in emerging markets can provide increased risk to the Fund and may involve delays in obtaining accurate information on the value of securities (which may as a result affect the calculation of the Net Asset Value per unit). The stock markets, in general, are less liquid than those of the world’s leading stock markets. Purchases and sales of investments may take longer than would otherwise be expected on developed stock markets and transactions may need to be conducted at unfavourable prices.

40

Information quality risk Accounting, auditing and financing reporting standards, practices and disclosure requirements applicable to some issuers in emerging markets in which the Fund may invest may differ from those applicable in more developed markets in that less information is available to investors and such information may be out of date.

4.4 CIMB Islamic Global Equity Fund Stock specific risk Any irregular fluctuation of the value of a particular stock may affect the unit price. The impact is however minimized as the Fund invests in a wide portfolio of investments, thus spreading the element of risk. Company specific risk There are many specific risks which apply to individual companies that may affect the growth of a Fund. Examples include the possible effect on a company of losing a key executive or the unforeseen entry of a new competitor into the market or the implications of a company’s credit rating being downgraded. As a consequence, the price of any issuance by that company may fall and subsequently may also affect the growth of the overall Fund. The Manager or its fund management delegate aims to reduce all these risks by using diversification that is expected to reduce the volatility as well as the risk for the Fund’s portfolio. In addition, the Manager or its fund management delegate will also perform continuous fundamental research and analysis to aid its active asset allocation management. Country risk When a Fund invests into foreign markets, the foreign investments portion of the Fund may be affected by risks specific to the country which it invests in. Such risks include changes in the country’s economic fundamentals, social and political stability, currency movements and foreign investments policies. These factors may have impact on the prices of the Fund’s investment in that country and consequently may also affect the Fund’s NAV and its growth. To mitigate these risks, the Manager or its fund management delegate will select securities and collective investment schemes that spread across countries within its portfolio in an attempt to avoid such events. The decision on diversification will be based on its constant fundamental research and analysis on the global markets. Currency risk This risk is associated with Shariah-compliant investments that are quoted and/or priced in foreign currency denomination. Malaysian based investors should be aware that if the Malaysian Ringgit appreciates against the currencies in which the portfolio of the investment is denominated, this will have an adverse effect on the NAV of the Fund and vice versa. Investors should note that any gains or losses arising from the movement of the foreign currencies against its home currency may therefore increase/decrease the capital gains of the investment. Nevertheless, investors should realise that currency risk is considered as one of the major risks to investments in foreign assets due to the volatile nature of the foreign exchange market. The Manager or its fund management delegate could utilise two pronged approaches in order to mitigate the currency risk; firstly, by spreading the investments across differing currencies (i.e. diversification) and secondly, by hedging the currencies when it is deemed necessary. Risks associated with investment in warrants/options As the Fund may invest in warrants/options, investors should note that there are inherent risks associated with it. Warrants/options are financial instruments that entitle the holder to the right but not the obligation to fulfil the requirements of a contract entered into within an agreed timeframe. Warrants/options have values that will change over time, but the change in the value of warrants/options need not be in the same manner as its underlying assets. The value of warrants/options are influenced by the current market price of the underlying security, the exercise price of the contract, the cost of holding a position in the underlying security, the time to expiration of the contract and the estimate of the future volatility of the underlying security’s price over the life of the contract. The buyer/holder of warrants/options will incur a cost (the premium) to purchase the warrants/options although the buyer/holder may not exercise the right prior to expiration. Like securities, the Manager or its fund management delegate will undertake fundamental research and analysis on these instruments to ensure that the risk to the portfolio is minimised. Liquidity risk Securities markets of countries other than those of developed countries, while growing in volume, have for the most part substantially less volume than those of developed countries. Many securities traded on these foreign markets are less liquid and their prices more volatile than securities of comparable markets in developed countries. In addition, settlement of trades in some emerging markets is much slower and more subject to failure than in developed country markets. There may also be less extensive regulation of the securities markets in emerging market countries than in developed countries.

4.5 CIMB Islamic Global Commodities Equity Fund Stock specific risk Any irregular fluctuation of the value of a particular stock may affect the unit price. The impact is however minimized as the Fund invests in a wide portfolio of investments, thus spreading the element of risk.

Sector risk Stock prices of companies within a sector or industry move together due to sector-specific causal factors, examples of which include business cycle dynamics, key sector or industry earnings’ driver trend, demographic or consumer demand changes, new technology or product introduction, government policies or regulatory changes and international events. As this Fund will focus its investment within specific sectors that are related to the prevailing investment themes, its returns are strongly dependent on the impact of such sector-specific causal factors. These causal factors that drive sector-specific returns lead to sector-specific risks, the Manager or its fund management delegate will however, endeavour to minimise such risks by investing in a portfolio that diversifies the Fund’s assets within that sector. This is expected to reduce the volatility as well as the risk for the Fund’s portfolio. Country risk When the Fund invests in foreign markets, the foreign investments portion of the Fund may be affected by risks specific to the country that it invests in. Such risks include changes in the country’s economic fundamentals, social and political stability, laws and

41

regulations, currency movements and foreign investments policies. These factors may have impact on the prices of the Fund’s investment in that country and consequently may also the Fund’s NAV and its growth. To mitigate these risks, the Manager or its fund management delegate will select securities and collective investment schemes that spread across various countries. The decision on diversification will be based on constant fundamental research and analysis of the global markets. Currency risk This risk is associated with investments that are quoted and/or priced in foreign currency denomination. Malaysian based investors should be aware that if the Malaysian Ringgit appreciates against the currencies in which the portfolio of the investment is denominated, this will have an adverse effect on the NAV of the Fund and vice versa. Investors should note that any gains or losses arising from the movement of the foreign currencies against its home currency may therefore increase/decrease the capital gains of the investment. Nevertheless, investors should realise that currency risk is considered as one of the major risks to investments in foreign assets due to the volatile nature of the foreign exchange market. The Manager or its fund management delegate could utilise a two pronged approach in order to mitigate the currency risk, firstly, by spreading the investments across differing currencies (i.e. diversification) and secondly, by hedging the currencies when it is deemed necessary. Liquidity risk Liquidity risk is defined as the ease with which a security can be sold at or near its fair value depending on the volume traded on the market. This is applicable to both listed and unquoted securities. Generally if the security encounters a liquidity crunch, the security may need to be sold at a discount to the fair value of the security. This in turn would depress the NAV growth of the Fund marginally. For purpose of this Fund, the Manager or its fund management delegate will attempt to balance the entire portfolio by investing in a mix of assets with satisfactory trading volumes and those that occasionally could encounter poor liquidity. This is expected to reduce the risks for the entire portfolio without limiting the Fund’s growth potentials.

Risk associated with investment in the commodity industry The value of the Fund is vulnerable to factors affecting the commodity industry (including but not limited to sectors of the basic materials, energy, renewable energy and agriculture) such as industry wide supply and demand factors, change of regulations pertaining to the increased regulation of the environment by governments, changes in laws relating to mining or production or sales as well as increased labour cost or other costs in mining costs. Nevertheless, investors should note that the Fund’s highly disciplined portfolio construction methodology used aims to always maintain appropriate level of investment risk including this risk. Risk associated with investment in derivatives As the Fund may invest in derivatives, it may be subject to risks associated with such investments. Investments in derivatives may require the deposit of initial margin and additional deposit of margin on short notice if the market moves against the investment positions. If no provision is made for the required margin within the prescribed time, the Fund’s investments may be liquidated at a loss. Therefore, it is essential that such investments in derivatives be monitored closely. The Manager or its fund management delegate has the necessary controls for investment in derivatives and has in place systems to monitor any derivative positions for the Fund.

4.6 CIMB Islamic Kausar Lifecycle Funds Country risk When a Fund invests into foreign markets, the foreign investments portion of the Fund may be affected by risks specific to the country which it invests in. Such risks include changes in the country’s economic fundamentals, social and political stability, currency movements and foreign investments policies. These factors may have impact on the prices of the Fund’s investment in that country and consequently may also affect the fund’s NAV and its growth. To mitigate these risks, the Manager will select securities and collective investment schemes that spread across countries within its portfolio in an attempt to avoid such events. The decision on diversification will be based on its constant fundamental research and analysis on the global markets. Currency risk This risk is associated with investments that are quoted and/or priced in foreign currency denomination. Malaysian based investors should be aware that if the Malaysian Ringgit appreciates against the currencies in which the portfolio of the investment is denominated, this will have an adverse effect on the NAV of the Fund and vice versa. Investors should note that any gains or losses arising from the movement of the foreign currencies against its home currency may therefore increase/decrease the capital gains of the investment. Nevertheless, investors should realise that currency risk is considered as one of the major risk to investments in foreign assets due to the volatile nature of the foreign exchange market. The Manager could utilise two pronged approaches in order to mitigate the currency risk, firstly, by spreading the investments across differing currencies (i.e. diversification) and secondly, by hedging the currencies when it is deemed necessary. Credit/Default risk Investment in Sukuk and Shariah-compliant securities may involve a certain degree of credit/default risk with regards to the issuers. Generally, credit risk or default risk is the risk of loss due to the issuer’s non payment or untimely payment of the investment amount as well as the returns on investment. This will cause a decline in value of the defaulted Sukuk and subsequently depress the NAV of the Fund. Usually credit risk is more apparent for an investment with a longer tenure, i.e. the longer the duration, the higher the credit risk. Credit risk can be managed by performing continuous fundamental credit research and analysis to ascertain the creditworthiness of its issuer. In addition, the investment manager imposes a minimum rating requirement as rated by either local and/or foreign rating agencies and manages the duration of the investment in accordance with the objective of the Fund. For this Fund, the Sukuk investment must satisfy a minimum rating requirement of at least ”BBB3” or “P2” by RAM or equivalent rating by MARC, Moody’s, S&P or Fitch. Should the Fund invests into a Shariah-compliant Fixed Income Fund managed by other fund managers, the Manager will ensure via due diligence exercise on the Shariah-compliant fixed income fund, the appropriate creditworthiness and duration management of the Shariah-compliant fixed income fund. Interest rate risk In general, when interest rates rise, Sukuk prices will tend to fall and vice versa. Therefore, the NAV of the Fund may also tend to fall when interest rates rise or are expected to rise. However, investors should be aware that should the Fund hold a Sukuk till maturity, such price fluctuations would dissipate as it approaches maturity, and thus the growth of the NAV shall not be affected at

42

maturity. In order to mitigate interest rates exposure of the Fund, the Manager will manage the duration of the portfolio via shorter or longer tenured assets depending on the view of the future interest rate trend of the Manager, which is based on its continuous fundamental research and analysis. Please note that although Sukuk is a non-interest bearing instrument, its price movement is correlated to the movement in the interest rates. As such, investment in Sukuk will have an exposure to interest rates. Even though the Fund does not invest in interest bearing instruments, the interest rate referred herein is to the general interest rate of the country which may affect the value of the investment of the Fund. Counterparty risk When a Fund conducts OTC transactions and placement of deposit with the counterparty, it may be exposed to risks relating to the credit standing of its counterparties and their ability to fulfil the conditions of the contracts it enters into with them. Hence, it is generally not applicable to transactions performed through exchanges. The Manager aims to mitigate this risk by performing fundamental credit research and analysis to determine the creditworthiness of its counterparty and impose a credit limit as a precautionary step to limit any loss that may arise directly or indirectly as a result of a defaulted transaction. Company specific risk There are many specific risks which apply to individual companies that may affect the growth of a Fund. Examples include the possible effect on a company of losing a key executive or the unforeseen entry of a new competitor into the market or the implications of a company’s credit rating being downgraded. As a consequence, the price of any issuance by that company may fall and subsequently may also affect the growth of the overall Fund. The Manager aims to reduce all these risks by using diversification that is expected to reduce the volatility as well as the risk for the Fund’s portfolio. In addition, the Manager will also perform continuous fundamental research and analysis to aid its active asset allocation management. Stock specific risk Any irregular fluctuation of the value of a particular stock may affect the unit price. The impact is however minimized as the Fund invests in a wide portfolio of investments, thus spreading the element of risk. Risks associated with investment in REITs Investment in Real Estate Investment Trust may be subjected to risks similar to those associated with the direct ownership of real estate. These include terrorist attacks, war or other acts that destroy real property (in addition to market risk). Other factors that could impact the NAV of the Fund are changes in real estate values and property taxes, interest rate, supply and demand of the underlying real estate assets, the management skill and credit worthiness of the issuer. Cyclical changes in the political, economic and social conditions and change in regulatory laws pertaining to the country the underlying REITs invest in could have an adverse effect on properties values. Nevertheless, investors should note that the collective investment scheme’s highly disciplined portfolio construction methodology used always maintain an appropriate level of investment risk. The Funds are managed and portfolio constructed within pre-determined parameters, which have been established by taking into consideration the objective of the Funds, their targeted performance against benchmark, risk budgets and controls. The risk management team, within the investment team, monitors and reviews the Funds regularly to ensure that the parameters are adhered to.

IMPORTANT: It is important to note that events affecting investments cannot always be foreseen. Therefore, it is not always possible to protect your investments against all risks. The various asset classes generally exhibit different levels of risk. The risk/return profile of the various asset classes is usually such that, from the highest end of the risk/return spectrum, shares are followed by property, then fixed income securities and finally cash. However, this ranking may be influenced by the time at which you invest and the length of time. In summary, the value of the underlying assets of the Fund will fall or rise. The value of your investment and any distribution may also fall or rise. Please note, investments in a Fund carry significant risks and we recommend that you read the entire Master Prospectus (Shariah-compliant Funds) to assess the risks of investment.

43

Funds’ Detailed Information This chapter explains each of the Funds in detail and will be segregated into four (4) parts to ease investors’ understanding. Part A covers all CIMB-Principal’s Shariah-compliant Funds as listed below. For each of these Funds, we will describe the individual Fund’s investment objective and benchmark as well as its investment policy and principal investment strategy.

SECTION 1: EQUITY FUNDS

1.1 CIMB Islamic DALI Equity Growth Fund

1.2 CIMB Islamic DALI Equity Fund

1.3 CIMB Islamic DALI Equity Theme Fund

1.4 CIMB Islamic Equity Fund

1.5 CIMB Islamic Equity Aggressive Fund

1.6 CIMB Islamic Small Cap Fund

SECTION 2: MIXED ASSET FUNDS

2.1 CIMB Islamic Balanced Fund

2.2 CIMB Islamic Balanced Growth Fund

SECTION 3: FIXED INCOME & MONEY MARKET FUNDS

3.1 CIMB Islamic Enhanced Sukuk Fund

3.2 CIMB Islamic Sukuk Fund

3.3 CIMB Islamic Money Market Fund

3.4 CIMB Islamic Deposit Fund

SECTION 4: REGIONAL & GLOBAL FUNDS

4.1 CIMB Islamic Asia Pacific Equity Fund

4.2 CIMB Islamic Greater China Equity Fund

4.3 CIMB Islamic Global Emerging Markets Equity Fund

4.4 CIMB Islamic Global Equity Fund

4.5 CIMB Islamic Global Commodities Equity Fund

4.6 CIMB Islamic Kausar Lifecycle Funds

Part B covers the foreign market admission requirements by the relevant regulatory authorities. Part C covers the investment parameters and valuation practices of all Funds, which includes authorized investments, limitations on investments, investment restrictions, valuation of authorized investments, borrowings/financing and securities lending. Part D covers the Shariah investment guidelines applicable to the Funds.

44

Part A

SECTION 1: EQUITY FUNDS

1.1 CIMB Islamic DALI Equity Growth Fund

Investment objective The Fund aims to achieve consistent capital growth over the medium to long-term. Any material changes to the investment objective of the Fund would require Unit holders’ approval. Benchmark The benchmark of the Fund is the FTSE Bursa Malaysia EMAS Shariah Index. Information on the benchmark can be obtained from http://www.bursamalaysia.com and local national newspapers. Investment policy and principal investment strategy The Fund may invest a minimum of 70% and up to a maximum of 98% of its NAV principally in Shariah-compliant equities aimed to provide growth but may also invest in other Shariah-compliant investments, such as Sukuk with a minimum credit rating of “A3” or “P2” by RAM or equivalent rating by MARC; “BBB” by S&P or equivalent rating by Moody’s or Fitch. In line with its objective, the investment strategy and policy of the Fund is to rebalance the portfolio to suit market conditions in order to reduce short-term volatility and provide consistency in capital growth. The asset allocation strategy for this Fund is as follows: � between 70% to 98% (both inclusive) of the Fund’s NAV will be invested in Shariah-compliant equities and/or other permissible

investments; and � at least 2% of the Fund’s NAV will be invested in Shariah-compliant liquid assets. The asset allocation will be reviewed periodically depending on the country’s economic and stock market outlook. In a rising market, the 98% limit may be breached. However, the Manager will seek to adjust this within three (3) months from the date of the breach or any other timeframe as may be prescribed by the SC. CIMB-Principal combines a top-down asset and sector allocation process with a bottom-up stock selection process. The asset allocation decision is made after a review of macroeconomic trends in Malaysia and other global economies. In particular, CIMB-Principal analyzes the direction of gross domestic product (“GDP”) growth, interest rates, inflation, currencies and government policies. CIMB-Principal will then assess their impact on corporate earnings and determine if there are any predictable trends. These trends form the basis for sector selection. Stock selection is based on the growth style of equity investing. As such, the criteria for stock selection would include improving fundamentals and growth at reasonable valuations. Stock valuation fundamentals considered are earnings per share growth rate, return on equity, price earnings ratio and net tangible assets multiples. As part of its risk management strategy, the Fund is constructed and managed within pre-determined guidelines. CIMB-Principal employs an active asset allocation strategy depending upon the equity market expectation. Where appropriate, the Manager will also employ an active trading strategy in managing the Fund. As this is an equity fund, it has a proportionally higher equity exposure. Thus, the Manager is unable to take equity exposure down substantially even if it feels that the market is close to its peak. The Manager will therefore take a defensive stance and invest in Shariah-compliant stocks that have low correlation to market movements. Notwithstanding the aforesaid, in times of adversity in equity markets and as part of its risk management strategy, CIMB-Principal may from time to time reduce its proportion of higher risk assets, such as Shariah-compliant equities and increase its asset allocation to lower risk assets, such as Sukuk and Shariah-compliant liquid assets, to safeguard the investment portfolio of the Fund provided that such investments are within the investment objective of the Fund. When deemed necessary, the Manager may also utilize Shariah-compliant derivative instruments, subject to the SC Guidelines, for purposes such as hedging.

45

1.2 CIMB Islamic DALI Equity Fund

Investment objective The Fund aims to achieve a consistent capital growth over the medium to long-term. Any material changes to the investment objective of the Fund would require Unit holders’ approval. Benchmark As this Fund may invest in local and foreign Shariah-compliant equities, the benchmark of the Fund is a composite comprising 70% FTSE Bursa Malaysia EMAS Shariah Index + 30% Dow Jones Islamic Asia Pacific ex-Japan. Information on the FTSE Bursa Malaysia EMAS Shariah Index can be obtained from http://www.bursamalaysia.com and local national newspapers. Information on the Dow Jones Islamic Asia Pacific ex Japan can be obtained from http://www.djindexes.com.


The Fund is a Shariah-compliant equity growth fund and is a continuation of the CIMB Islamic DALI Equity Growth Fund. It may invest a minimum of 70% and up to a maximum of 98% of its NAV principally in Shariah-compliant equities aimed to provide growth but may also invest in other Shariah-compliant investments, such as Sukuk with a minimum credit rating of “A3” or “P2” by RAM or equivalent rating by MARC; “BB” by S&P or equivalent rating by Moody’s or Fitch. In line with its objective, the investment strategy and policy of the Fund is to rebalance the portfolio to suit market conditions in order to reduce short-term volatility and provide consistency in capital growth. The asset allocation strategy for this Fund is as follows: � between 70% to 98% (both inclusive) of the Fund’s NAV will be invested in Shariah-compliant equities and/or other permissible

investments; and � at least 2% of the Fund’s NAV in Shariah-compliant liquid assets. The asset allocation will be reviewed periodically depending on the country’s economic and stock market outlook. In a rising market, the 98% limit may be breached. However, the Manager or its delegate will seek to adjust this within three (3) months from the date of the breach or any other timeframe as may be prescribed by the SC. CIMB-Principal combines a top-down asset and sector allocation process with a bottom-up stock selection process. The asset allocation decision is made after a review of macroeconomic trends in Malaysia and other global economies. In particular, CIMB-Principal analyzes the direction of gross domestic product (“GDP”) growth, interest rates, inflation, currencies and government policies. CIMB-Principal will then assess their impact on corporate earnings and determine if there are any predictable trends. These trends form the basis for sector selection. Stock selection is based on the growth style of equity investing. As such, the criteria for stock selection would include improving fundamentals and growth at reasonable valuations. Stock valuation fundamentals considered are earnings per share growth rate, return on equity, price earnings ratio and net tangible assets multiples. As part of its risk management strategy, the Fund is constructed and managed within pre-determined guidelines. CIMB-Principal employs an active asset allocation strategy depending upon the equity market expectation. Where appropriate, the Manager will also employ an active trading strategy in managing the Fund.

As this is an equity fund, it has a proportionally higher equity exposure. Thus, the Manager is unable to take equity exposure down substantially even if it feels that the market is close to its peak. The Manager will therefore take a defensive stance and invest in Shariah-compliant stocks that have low correlation to market movements. Notwithstanding the aforesaid, in times of adversity in equity markets and as part of its risk management strategy, CIMB-Principal may from time to time reduce its proportion of higher risk assets, such as Shariah-compliant equities and increase its asset allocation to lower risk assets, such as Sukuk and Shariah-compliant liquid assets, to safeguard the investment portfolio of the Fund provided that such investments are within the investment objective of the Fund. When deemed necessary, the Manager may also utilize Shariah-compliant derivative instruments, subject to the SC Guidelines, for purposes such as hedging.

CIMB-Principal has appointed CIMB-Principal Asset Management (S) Pte Ltd (“CIMB-Principal (S)”), as the Investment Manager for the foreign investments of the Fund with the approval of the SC and the Trustee. CIMB-Principal (S) will be responsible for investing and managing these foreign investments in accordance with the investment objective and within the investment restrictions. All costs of this appointment will be borne by the Manager to ensure no additional fee is levied on the Unit holders of this Fund.

The Fund may invest in foreign markets where the regulatory authorities are members of the International Organization of Securities Commissions (“IOSCO”). The Fund’s investments in foreign markets will be subject to the limit set by BNM and any conditions imposed by the SC from time to time. Currently, the Fund’s holding in foreign investments will not exceed 30% of its NAV. The Investment Manager may invest beyond this limit provided the necessary approvals are obtained from the relevant authorities (where necessary) and any increase will be reflected in a supplementary prospectus (if deemed necessary). Notwithstanding the aforesaid, the Investment Manager may decide not to invest in foreign securities as may be agreed upon by the Manager from time to time.

46

1.3 CIMB Islamic DALI Equity Theme Fund

Investment objective The Fund aims to provide investors with medium to long-term capital appreciation through investments in securities of Malaysian companies that will benefit from prevailing investment themes and that conform with Shariah principles. Any material changes to the investment objective of the Fund would require Unit holders’ approval. Benchmark The benchmark of the Fund is FTSE Bursa Malaysia EMAS Shariah Index. Information on the benchmark can be obtained from http://www.bursamalaysia.com and local national newspapers. Investment policy and principal investment strategy The strategy of the Fund is to invest in sectors that are related to the prevailing domestic and/or global investment themes. In identifying the investment themes, the Manager will consider prevailing and potential macro economic factors and trends, social and political developments as well as technological advances that may reveal specific thematic investment opportunities. The Manager currently holds the view that there are strong cyclical growth trends in selected investment themes, examples of which are as set out below. However, the Fund is not limited to these current investment themes and may, during its monthly reviews, revise its outlook on the investment themes. Unit holders will be informed of the prevailing investment themes that the Fund is focusing on via the Fund’s monthly fact sheet. a) Oil & Gas

In an environment of rising oil prices, oil & gas producers are more willing to open their wallets when oil prices are high. High oil prices give them more incentive to step up exploration and production activities, which in turn benefit oil & gas companies which are mostly service providers. The higher oil prices have prompted Petronas to develop marginal fields, a venture that is not economically viable in a low oil price environment. Furthermore, recent discoveries in offshore Sarawak and the six deepwater fields (Gumusut, Kakap, Malikai, Kebabangan, Jangas and Pisangan) that are expected to come onstream in 2012-2013 offer bright prospects for the service providers, both upstream and downstream. The oil & gas sector is a major beneficiary of the ETP. Big projects have been rolled out in the form of a RM5 billion Pengerang tank terminal project where Dialog is a contractor and operator, and the US$800 million Berantai marginal field development involving SapuraCrest and Kencana as developers and producers. With the Berantai contract already awarded, there are 25 more marginal fields to go with development cost ranging between US$500 million and US$1 billion per field. This will benefit oil & gas companies. Two more marginal field contracts are expected to be dished out in April. The Manager like the sector, with ETP newsflow and more contract awards being the potential catalysts.

b) Property

Property developers are indirect beneficiaries of rising oil prices as greater inflationary pressures can be a boost to demand for properties. Property companies are also big winners from the drive to improve transport infrastructure in Greater Kuala Lumpur via projects such as the LRT extension, MRT and high-speed rail. The construction of the RM37 billion MRT project will improve accessibility and greatly enhance property values. Other ETP projects such as the high-speed rail and numerous new highways will enhance economic activities. If the targeted increase in Greater Kuala Lumpur’s population from 6 million to 10 million by 2020 materialises, property developers will be busy over the next 10 years supplying to this big pool of buyers. The Manager like sector, due to (1) robust sales and earnings growth, (2) M&A activity which would unlock the hidden value of developers and (3) newsflow on landbanking exercises.

c) Construction

2011 is likely to be a year of execution, backed by the government’s ETP and further rollout of the 10MP. Major project, including the RM36 billion KL MRT, RM1.7 billion Phase 2 of the LRT extension and the RM8 billion Klang Valley river rehabilitation are making good progress towards tenders and awards. Positive newsflow for the sector is likely to pick up over the next 6 to 9 months and pave the way for further re-rating of the sector.

The Fund’s sector allocation will be actively managed by the Manager who has the option to aggressively overweight preferred sectors to take advantage of their market outlook. Sector analysis is done through quantitative and qualitative approaches. In determining the sector allocation and stock selection, the Manager will focus on the following: � identify the potential sector(s) in light of the prevailing domestic and/or global investment themes; � study impact of the prevailing economic and political conditions; � select particular sectors based primarily on the growth prospects and valuation of that sector. The most promising sectors will

be chosen according to their rating levels as per the sector analysis; � invest in stocks of Malaysian companies in the chosen sectors based on the stocks’ potential for appreciation relative to the

outlook for that sector. However, the Manager may, at its discretion, overweight or underweight at stock level if it is beneficial to the Fund; and

� review sector and stock picks monthly. Depending on prevailing market conditions, the Manager may, during its monthly reviews, revise the sector allocation and maintain, add or omit certain stocks.

The Manager will only select securities that conform with Shariah principles and may opt to invest in these Shariah-compliant securities either directly or via Shariah-compliant collective investment schemes.

47

The asset allocation strategy for this Fund is as follows: � between 70% to 98% (both inclusive) of the Fund’s NAV will be invested in equities that conform with Shariah principles and/or

other permissible investments; and � at least 2% of the Fund’s NAV will be invested in Shariah-compliant liquid assets for liquidity purposes. As part of its risk management strategy, the Fund is constructed and managed within pre-determined guidelines. CIMB-Principal employs an active asset allocation strategy depending upon the equity market expectation. Where appropriate, the Manager will also employ an active trading strategy in managing the Fund. In response to adverse conditions and as part of its risk management strategy, CIMB-Principal may from time to time reduce its proportion of higher risk assets, such as Shariah-compliant equities and increase its asset allocation to lower risk assets, such as Sukuk and Shariah-compliant liquid assets, to safeguard the investment portfolio of the Fund provided that such investments are within the investment objective of the Fund. When deemed necessary, the Manager may also utilize Shariah-compliant derivative instruments, subject to the SC Guidelines, for purpose such as hedging.

48

1.4 CIMB Islamic Equity Fund

Investment objective The Fund aims to provide investors with long-term capital growth by investing principally in equities. The Fund also seeks to outperform the benchmark. Any material changes to the investment objective of the Fund would require Unit holders’ approval. Benchmark As this Fund invests in local and foreign Shariah-compliant equities, the benchmark of the Fund is a composite comprising 50% FTSE Bursa Malaysia EMAS Shariah Index + 50% Dow Jones Islamic Asia Pacific ex Japan*. Information on the FTSE Bursa Malaysia EMAS Shariah Index can be obtained from http://www.bursamalaysia.com and local national newspapers. Information on the Dow Jones Islamic Asia Pacific ex Japan can be obtained from http://www.djindexes.com. *Note: The benchmark is customised as such to align it closer to the structure of the portfolio and to reflect the composition of the portfolio in line with the markets they operate in and its objectives. Investment policy and principal investment strategy The Fund will invest a minimum of 70% and up to a maximum of 98% of its NAV in Shariah-compliant equities in order to gain long-term capital growth. The Fund may opt to invest in foreign equities up to a maximum of 50% of its NAV. In addition, Shariah-compliant liquid assets may be strategically used if the Manager feels that the market downside risk is high in the short-term. In line with its objective, the investment strategy and policy of the Fund is to have diversified portfolio of the Shariah-compliant stocks aimed at outperforming the market at different cycles of the market. The asset allocation strategy for this Fund is as follows: � between 70% to 98% (both inclusive) of the Fund’s NAV will be invested in Shariah-compliant equities and/or other permissible

investments; and � at least 2% of the Fund’s NAV in Shariah-compliant liquid assets. The Manager will switch between sectors and stocks at different market cycles in order to outperform the benchmark. The Manager will have higher exposure to growth stocks at the bottom of the market cycles and increase exposure in defensive stocks at the higher end of the market cycles. The asset allocation will be reviewed periodically depending on the country’s economic and stock market outlook. In a rising market, the 98% limit may be breached. However, the Manager or its delegate will seek to adjust this within three (3) months from the date of the breach or any other timeframe as may be prescribed by the SC. CIMB-Principal combines a top-down asset and sector allocation process with a bottom-up stock selection process. The asset allocation decision is made after a review of macroeconomic trends in Malaysia and other global economies. In particular, CIMB-Principal analyzes the direction of gross domestic product (“GDP”) growth, interest rates, inflation, currencies and government policies. CIMB-Principal will then assess their impact on corporate earnings and determine if there are any predictable trends. These trends form the basis for sector selection. Stock selection is based on the growth style of equity investing. As such, the criteria for stock selection would include improving fundamentals and growth at reasonable valuations. Stock valuation fundamentals considered are earnings per share growth rate, return on equity, price earnings ratio and net tangible assets multiples. As part of its risk management strategy, the Fund is constructed and managed within pre-determined guidelines. CIMB-Principal employs an active asset allocation strategy depending upon the equity market expectation. Where appropriate, the Manager will also employ an active trading strategy in managing the Fund. As this is an equity fund, which has a minimum 70% equity exposure, the Manager is unable to take equity exposure down substantially if it feels that the market is close to its peak. The Manager will therefore take a defensive stance and invest in Shariah-compliant stocks that have low correlation to market movements. Notwithstanding the aforesaid, in times of adversity in equity markets and as part of its risk management strategy, CIMB-Principal may from time to time reduce its proportion of higher risk assets, such as Shariah-compliant equities and increase its asset allocation to lower risk assets, such as Sukuk and Shariah-compliant liquid assets, to safeguard the investment portfolio of the Fund provided that such investments are within the investment objective of the Fund. When deemed necessary, the Manager may also utilize Shariah-compliant derivative instruments, subject to the SC Guidelines, for purposes such as hedging. CIMB-Principal has appointed CIMB-Principal Asset Management (S) Pte Ltd (“CIMB-Principal (S)”), as the Investment Manager for the foreign investments of the Fund with the approval of the SC and the Trustee. CIMB-Principal (S) will be responsible for investing and managing these foreign investments in accordance with the investment objective and within the investment restrictions. All costs of this appointment will be borne by the Manager to ensure no additional fee is levied on the Unit holders of this Fund. The Fund may invest in foreign markets where the regulatory authorities are members of the International Organization of Securities Commissions (“IOSCO”). The Fund’s investments in foreign markets will be subject to the limit set by BNM and any conditions imposed by the SC from time to time. Currently, the Fund’s holding in foreign investments will not exceed 50% of its NAV. The Investment Manager may invest beyond this limit provided the necessary approvals are obtained from the relevant authorities (where necessary) and any increase will be reflected in a supplementary prospectus (if deemed necessary). Notwithstanding the aforesaid, the Investment Manager may decide not to invest in foreign securities as may be agreed upon by the Manager from time to time.

49

1.5 CIMB Islamic Equity Aggressive Fund

Investment objective The Fund aims to earn reasonable returns for investors by investing in approved equities listed on Bursa Malaysia as well as unlisted securities and other non-interest bearing assets acceptable under Shariah principles. Any material changes to the investment objective of the Fund would require Unit holders’ approval. Benchmark The benchmark of the Fund is the FTSE Bursa Malaysia EMAS Shariah Index. Information on the benchmark can be obtained from http://www.bursamalaysia.com and local national newspapers. Investment policy and principal investment strategy The Fund may invest a minimum of 70% and up to a maximum of 98% of the Fund’s NAV in local Shariah-compliant equities. As an aggressive Fund, the Fund will be managed with higher beta and tracking error. The investment policy and strategy of the Fund will be to invest in Shariah-compliant stocks which are selected based on their future growth prospects with benchmarking of the Fund being a secondary consideration. As such, the Fund may hold a larger percentage of its NAV (may exceed 10%) in Shariah-compliant stocks of companies with small capitalization. In addition, Shariah-compliant liquid assets may also be strategically used if the Manager feels that the market downside risk is high in the short-term. The asset allocation strategy for this Fund is as follows: � between 70% to 98% (both inclusive) of the Fund’s NAV will be invested in Shariah-compliant equities and/or other permissible

investments; and � at least 2% of the Fund’s NAV in Shariah-compliant liquid assets. The asset allocation will be reviewed periodically depending on the country’s economic and stock market outlook. In a rising market, the 98% limit may be breached. However, the Manager will seek to adjust this within three (3) months from the date of the breach or any other timeframe as may be prescribed by the SC. CIMB-Principal combines a top-down asset and sector allocation process with a bottom-up stock selection process. The asset allocation decision is made after a review of macroeconomic trends in Malaysia and other global economies. In particular, CIMB-Principal analyzes the direction of gross domestic product (“GDP”) growth, interest rates, inflation, currencies and government policies. CIMB-Principal will then assess their impact on corporate earnings and determine if there are any predictable trends. These trends form the basis for sector selection. Stock selection is based on the growth style of equity investing. As such, the criteria for stock selection would include improving fundamentals and growth at reasonable valuations. Stock valuation fundamentals considered are earnings per share growth rate, return on equity, price earnings ratio and net tangible assets multiples. As part of its risk management strategy, the Fund is constructed and managed within pre-determined guidelines. CIMB-Principal employs an active asset allocation strategy depending upon the equity market expectation. Where appropriate, the Manager will also employ an active trading strategy in managing the Fund. As this is an equity fund, it has a proportionally higher equity exposure. Thus, the Manager is unable to take equity exposure down substantially if it feels that the market is close to its peak. The Manager will therefore take a defensive stance and invest in Shariah-compliant stocks that have low correlation to market movements. Notwithstanding the aforesaid, in times of adversity in equity markets and as part of its risk management strategy, CIMB-Principal may from time to time reduce its proportion of higher risk assets, such as Shariah-compliant equities and increase its asset allocation to lower risk assets, such as Sukuk and Shariah-compliant liquid assets, to safeguard the investment portfolio of the Fund provided that such investments are within the investment objective of the Fund. When deemed necessary, the Manager may also utilize Shariah-compliant derivative instruments, subject to the SC Guidelines, for purposes such as hedging.

50

1.6 CIMB Islamic Small Cap Fund

Investment objective The Fund aims to seek medium to long-term growth in capital by investing principally in emerging companies listed on Bursa Securities and this must be in accordance with the Shariah principles. Any material changes to the investment objective of the Fund would require Unit holders’ approval. Benchmark The benchmark of the Fund is the FTSE Bursa Malaysia Small Cap Index. Information on the benchmark can be obtained from http://www.bursamalaysia.com and local national newspapers. Investment policy and principal investment strategy The Fund may invest a minimum of 70% and up to a maximum of 98% of the Fund’s NAV in Shariah-compliant stocks of smaller companies with market capitalisation at point of purchase not exceeding the market capitalisation of the largest constituent stock (by market capitalisation) of the benchmark. The investment policy and strategy of the Fund will therefore focus on investments in Shariah-compliant securities of such emerging companies with strong potential growth and hands-on management policies but lacking in track records. To a lesser extent, the Fund may also invest in other Shariah-compliant investments such as Shariah-compliant fixed income securities primarily for the purpose of cash management. In addition, Shariah-compliant liquid assets may be strategically used if the Investment Manager feels that the market downside risk is high in the short-term. The asset allocation strategy for this Fund is as follows: � between 70% to 98% (both inclusive) of the Fund’s NAV will be invested in Shariah-compliant equities and/or other permissible

investments; and � at least 2% of the Fund’s NAV in Shariah-compliant liquid assets. The asset allocation will be reviewed periodically depending on the country’s economic and stock market outlook. In a rising market, the 98% limit may be breached. However, the Manager will seek to adjust this within three (3) months from the date of the breach or any other timeframe as may be prescribed by the SC. CIMB-Principal combines a top-down asset and sector allocation process with a bottom-up stock selection process. The asset allocation decision is made after a review of macroeconomic trends in Malaysia and other global economies. In particular, CIMB-Principal analyzes the direction of gross domestic product (“GDP”) growth, interest rates, inflation, currencies and government policies. CIMB-Principal will then assess their impact on corporate earnings and determine if there are any predictable trends. These trends form the basis for sector selection. Stock selection is based on the growth style of equity investing. As such, the criteria for stock selection would include improving fundamentals and growth at reasonable valuations. Stock valuation fundamentals considered are earnings per share growth rate, return on equity, price earnings ratio and net tangible assets multiples. As Shariah-compliant small cap stocks tend to be under researched, CIMB-Principal will depend upon proprietary research and selected research from brokers. In particular, stock selection will depend upon the growth potential of the company and its industry, management quality, franchise value and corporate governance considerations. The key strategy is to invest in Shariah-compliant companies that are trading below its intrinsic value and selling them when the share price has passed its intrinsic value. As part of its risk management strategy, the Fund is constructed and managed within pre-determined guidelines. CIMB-Principal employs an active asset allocation strategy depending upon the equity market expectation. Where appropriate, the Manager will also employ an active trading strategy in managing the Fund. As this is an equity fund, it has a proportionally higher equity exposure. Thus, the Manager is unable to take equity exposure down substantially even if it feels that the market is close to its peak. The Manager will therefore take a defensive stance and invest in Shariah-compliant stocks that have low correlation to market movements. Notwithstanding the aforesaid, in times of adversity in equity markets and as part of its risk management strategy, CIMB-Principal may from time to time reduce its proportion of higher risk assets, such as Shariah-compliant equities and increase its asset allocation to lower risk assets, such as Sukuk and Shariah-compliant liquid assets, to safeguard the investment portfolio of the Fund provided that such investments are within the investment objective of the Fund. When deemed necessary, the Manager may also utilize Shariah-compliant derivative instruments, subject to the SC Guidelines, for purposes such as hedging.

51

SECTION 2: MIXED ASSET FUNDS 2.1 CIMB Islamic Balanced Fund

Investment objective The Fund aims to achieve medium to long-term growth in both capital and income by investing in permissible Shariah-compliant investments. Any material changes to the investment objective of the Fund would require Unit holders’ approval. Benchmark As up to 50% of the Fund’s maximum allocation for equities (i.e. maximum 60% of the Fund’s NAV) may be invested in foreign Shariah-compliant equities with the balance 40% of the Fund’s NAV in Sukuk, the benchmark of this Fund is a composite comprising 30% FTSE Bursa Malaysia EMAS Shariah Index + 30% Dow Jones Islamic Asia Pacific ex Japan + 40% CIMB Islamic 1-month General Investment Account. Information on FTSE Bursa Malaysia EMAS Shariah Index can be obtained from http://www.bursamalaysia.com and local national newspapers. Information on Dow Jones Islamic Asia Pacific ex Japan can be obtained from http://www.djindexes.com. Information on CIMB Islamic 1-Month General Investment Account can be obtained from http://www.cimbislamic.com. Investment policy and principal investment strategy The Fund aims to invest in a diversified portfolio of Shariah-compliant equities and Shariah-compliant fixed income investments. In line with its objective, the investment policy and strategy will be to maintain a balanced portfolio between Shariah-compliant equities and Shariah-compliant fixed income investments in the ratio of 60:40. The fixed income portion of the Fund is to provide some capital stability to the Fund whilst the equity portion will provide the added return in a rising market. The investments by the Fund in Shariah-compliant equities shall not exceed 60% of the NAV of the Fund and investments in Shariah-compliant fixed income securities and Shariah-compliant liquid assets shall not be less than 40% of the NAV of the Fund with a minimum credit rating of “BBB3” or “P2” by RAM or equivalent rating by MARC; “BB” by S&P or equivalent rating by Moody’s or Fitch. The asset allocation strategy for this Fund is as follows: � the Shariah-compliant equities will not exceed 60% of the NAV of the Fund, subject to a minimum of 40%; � investments in Shariah-compliant fixed income securities and Shariah-compliant liquid assets shall not be less than 40% of the

NAV of the Fund, subject to a maximum of 60%; and � at least 2% of the Fund’s NAV in Shariah-compliant liquid assets. The asset allocation will be reviewed periodically depending on the country’s economy and stocks market outlook. In a rising market, the 60% limit may be breached. However, the Manager or its delegate will seek to adjust this within three (3) months from the date of the breach or any other timeframe as may be prescribed by the SC. CIMB-Principal will adopt an active trading strategy and is therefore especially selective in the buying and selling of securities for the Fund. For the equities portion, CIMB-Principal combines a top-down asset and sector allocation process with a bottom-up stock selection process. The asset allocation decision is made after a review of macroeconomic trends in Malaysia and other global economies. In particular, CIMB-Principal analyzes the direction of gross domestic product (“GDP”) growth, interest rates, inflation, currencies and government policies. CIMB-Principal will then assess their impact on corporate earnings and determine if there are any predictable trends. These trends form the basis for sector selection. Stock selection is based on the growth style of equity investing. As such, the criteria for stock selection would include improving fundamentals and growth at reasonable valuations. Stock valuation fundamentals considered are earnings per share growth rate, return on equity, price earnings ratio and net tangible assets multiples. As for the fixed income portion, CIMB-Principal formulates an interest rate outlook by considering factors such as the Malaysian inflation rate, monetary policies and economic growth. With an interest rate outlook and yield curve analysis, CIMB-Principal identifies the weighting of the investment tenor and credit for the Fund. In the unlikely event of a credit rating downgrade, the Manager reserves the right to deal with the security in the best interest of the Unit holders. As active fund managers, CIMB-Principal has in place flexible tolerance limits to cater to such situations. CIMB-Principal can for example, continue to hold the downgraded security if the immediate disposal of the security would not be in the best interest of the Unit holders. As part of its risk management strategy, the Fund is constructed and managed within pre-determined guidelines. Essentially, CIMB-Principal employs an active asset allocation strategy depending upon the equity market expectation, and at the same time monitors the Sukuk portfolio according to three (3) parameters: tenure, credit ratings and sector. The duration of the Sukuk portfolio is also monitored and modified according to the Manager’s interest rate outlook (i.e. the sensitivity of the portfolio to interest rate changes). In response to adverse conditions and as part of its risk management strategy, CIMB-Principal may from time to time reduce its proportion of higher risk assets, such as Shariah-compliant equities and increase its asset allocation to lower risk assets, such as Sukuk and Shariah-compliant liquid assets, to safeguard the investment portfolio of the Fund provided that such investments are within the investment objective of the Fund. Additionally, for investments in debt markets, the Manager may reduce holdings in longer tenured assets and channel these monies into Shariah-compliant shorter-term deposits. When deemed necessary, the Manager may also utilize Shariah-compliant derivative instruments, subject to the SC Guidelines, for purposes such as hedging. CIMB-Principal has appointed CIMB-Principal Asset Management (S) Pte Ltd (“CIMB-Principal (S)”), as the Investment Manager for the foreign investments of the Fund with the approval of the SC and the Trustee. CIMB-Principal (S) will be responsible for

52

investing and managing these foreign investments in accordance with the investment objective and within the investment restrictions. All costs of this appointment will be borne by the Manager to ensure no additional fee is levied on the Unit holders of this Fund. The Fund may invest in foreign markets where the regulatory authorities are members of the International Organization of Securities Commissions (“IOSCO”). The Fund’s investments in foreign markets will be subject to the limit set by BNM and any conditions imposed by the SC from time to time. Currently, the Fund’s holding in foreign investments will not exceed 50% of its NAV. The Investment Manager may invest beyond this limit provided the necessary approvals are obtained from the relevant authorities (where necessary) and any increase will be reflected in a supplementary prospectus (if deemed necessary). Notwithstanding the aforesaid, the Investment Manager may decide not to invest in foreign securities as may be agreed upon by the Manager from time to time.

53

2.2 CIMB Islamic Balanced Growth Fund

Investment objective The objective of CIMB Islamic Balanced Growth Fund is to grow the value of the Unit holders’ investments over the long-term in a diversified mix of Malaysian assets in approved Shariah instruments while providing consistent income. Any material changes to the investment objective of the Fund would require Unit holders’ approval. Benchmark As this Fund may invest up to 60% of its NAV in shares with the balance in fixed income securities, the benchmark of this Fund is a composite comprising 60% FBM EMAS Shariah Index + 40% CIMB Islamic 1-Month General Investment Account-i (GIA). Information on the FBM EMAS Shariah Index can be obtained from http://www.bursamalaysia.com and local national newspapers. Information on the CIMB Islamic 1-Month General Investment Account-i (GIA) can be obtained from the http://www.cimbislamic.com Investment policy and principal investment strategy The Fund aims to invest in a diversified portfolio of Malaysian assets comprising Shariah-compliant equities and Shariah-compliant fixed income investments. In line with its objective, the investment policy and strategy of the Fund will be to maintain a balanced portfolio between Shariah-compliant equities and Shariah-compliant fixed income investments in the ratio of 60:40. The fixed income portion of the Fund is to provide some capital stability to the Fund whilst the equity portion will provide the added return in a rising market. The investment by the Fund in Shariah-compliant equities shall not be less than 40% of the NAV of the Fund and investments in Shariah-compliant fixed income securities and Shariah-compliant liquid assets shall not exceed 60% of the NAV of the Fund with a minimum credit rating of “BBB3” or “P2” by RAM or equivalent rating by MARC; “BBB” by S&P or equivalent rating by Moody’s or Fitch. The asset allocation strategy for this Fund is as follows: � at least 40% of the Fund’s NAV in Shariah-compliant equities, subject to a maximum of 60%; � up to a maximum of 60% of the Fund’s NAV in Shariah-compliant fixed income investments and Shariah-compliant liquid

assets, subject to a minimum of 40%; and � at least 2% of the Fund’s NAV in Shariah-compliant liquid assets. The asset allocation will be reviewed periodically depending on the country’s economy and stocks market outlook. In a rising market, the 60% limit may be breached. However, the Manager will seek to adjust this within three (3) months from the date of the breach or any other timeframe as may be prescribed by the SC. CIMB-Principal will adopt an active trading strategy and is therefore especially selective in the buying and selling of securities for the Fund. For the equities portion, CIMB-Principal combines a top-down asset and sector allocation process with a bottom-up stock selection process. The asset allocation decision is made after a review of macroeconomic trends in Malaysia and other global economies. In particular, CIMB-Principal analyzes the direction of gross domestic product (“GDP”) growth, interest rates, inflation, currencies and government policies. CIMB-Principal will then assess their impact on corporate earnings and determine if there are any predictable trends. These trends form the basis for sector selection. Stock selection is based on the growth style of equity investing. As such, the criteria for stock selection would include improving fundamentals and growth at reasonable valuations. Stock valuation fundamentals considered are earnings per share growth rate, return on equity, price earnings ratio and net tangible assets multiples. As for the fixed income portion, CIMB-Principal formulates an interest rate outlook by considering factors such as the Malaysian inflation rate, monetary policies and economic growth. With an interest rate outlook and yield curve analysis, CIMB-Principal identifies the weighting of the investment tenor and credit for the Fund. In the unlikely event of a credit rating downgrade, the Manager reserves the right to deal with the security in the best interest of the Unit holders. As active fund managers, CIMB-Principal has in place flexible tolerance limits to cater to such situations. CIMB-Principal can for example, continue to hold the downgraded security if the immediate disposal of the security would not be in the best interest of the Unit holders. As part of its risk management strategy, the Fund is constructed and managed within pre-determined guidelines. Essentially, CIMB-Principal employs an active asset allocation strategy depending upon the equity market expectation, and at the same time monitors the Sukuk portfolio according to three (3) parameters: tenure, credit ratings and sector. The duration of the Sukuk portfolio is also monitored and modified according to the Manager’s interest rate outlook (i.e. the sensitivity of the portfolio to interest rate changes). In response to adverse conditions and as part of its risk management strategy, CIMB-Principal may from time to time reduce its proportion of higher risk assets, such as Shariah-compliant equities and increase its asset allocation to lower risk assets, such as Sukuk and Shariah-compliant liquid assets, to safeguard the investment portfolio of the Fund provided that such investments are within the investment objective of the Fund. Additionally, for investments in debt markets, the Manager may reduce holdings in longer tenured assets and channel these monies into Shariah-compliant shorter-term deposits. When deemed necessary, the Manager may also utilize Shariah-compliant derivative instruments, subject to the SC Guidelines, for purposes such as hedging.

54

SECTION 3: FIXED INCOME & MONEY MARKET FUNDS 3.1 CIMB Islamic Enhanced Sukuk Fund

Investment objective The objective of CIMB Islamic Enhanced Sukuk Fund is to grow the value of Unit holders’ investments over the medium-term in Sukuk portfolio with most tenures ranging from 3-10 years as well as to provide regular income. Any material changes to the investment objective of the Fund would require Unit holders’ approval. Benchmark As this Fund will invest predominantly in Sukuk with up to 20% of its NAV in Shariah-compliant equities, the benchmark of this Fund is a composite comprising 85% CIMB Islamic 1-Month General Investment Account-i (GIA) + 15% FBM EMAS Shariah Index. Information on the CIMB Islamic 1-Month General Investment Account-i (GIA) can be obtained from http://www.cimbislamic.com Information on the FBM EMAS Shariah Index can be obtained from http://www.bursamalaysia.com and local national newspapers. Investment policy and principal investment strategy A minimum of 60%* and up to a maximum of 98% of the Fund’s NAV may be invested in Sukuk carrying at least a “BBB3” or “P2” rating by RAM or equivalent rating by MARC; “BBB” by S&P or equivalent rating by Moody’s or Fitch. The Fund may also invest between 0% to 20% (both inclusive) of its NAV in Shariah-compliant equities, of which up 10% of its NAV may be invested in warrants of Shariah-compliant companies. The investment strategy and policy of the Fund is focus bias towards Shariah-compliant fixed income investments aimed to provide consistency in income, while allowing some exposure in Shariah-compliant equities and warrants aimed to provide the added return in a rising market. The asset allocation strategy for this Fund is as follows: � between 60%* to 98% (both inclusive) of the Fund’s NAV in Shariah-compliant fixed income investments; � between 0% to 20% (both inclusive) of the Fund’s NAV in Shariah-compliant equities, of which up to 10% may be invested in

warrants; and � at least 2% of the Fund’s NAV in Shariah-compliant liquid assets. In a rising market, the limit may be breached. However, the Manager will seek to adjust this within three (3) months from the date of the breach or any other timeframe as may be prescribed by the SC. CIMB-Principal will adopt an active trading strategy and is therefore especially selective in the buying and selling of securities for the Fund. For the fixed income portion, CIMB-Principal formulates an interest rate outlook by considering factors such as the Malaysian inflation rate, monetary policies and economic growth. With an interest rate outlook and yield curve analysis, CIMB-Principal identifies the weighting of the investment tenor and credit for the Fund. In the unlikely event of a credit rating downgrade, the Manager reserves the right to deal with the security in the best interest of the Unit holders. As active fund managers, CIMB-Principal has in place flexible tolerance limits to cater to such situations. CIMB-Principal can for example, continue to hold the downgraded security if the immediate disposal of the security would not be in the best interest of the Unit holders. As for the equities portion, CIMB-Principal combines a top-down asset and sector allocation process with a bottom-up stock selection process. The asset allocation decision is made after a review of macroeconomic trends in Malaysia and other global economies. In particular, CIMB-Principal analyzes the direction of gross domestic product (“GDP”) growth, interest rates, inflation, currencies and government policies. CIMB-Principal will then assess their impact on corporate earnings and determine if there are any predictable trends. These trends form the basis for sector selection. Stock selection is based on the growth style of equity investing. As such, the criteria for stock selection would include improving fundamentals and growth at reasonable valuations. Stock valuation fundamentals considered are earnings per share growth rate, return on equity, price earnings ratio and net tangible assets multiples. As part of its risk management strategy, the Fund is constructed and managed within pre-determined guidelines. Essentially, CIMB-Principal employs an active asset allocation strategy depending upon the equity market expectations, and at the same time monitors the Sukuk portfolio according to three (3) parameters: tenure, credit ratings and sector. The duration of the Sukuk portfolio is also monitored and modified according to the Manager’s interest rate outlook (i.e. the sensitivity of the portfolio to interest rate changes). In response to adverse conditions and as part of its risk management strategy, CIMB-Principal may from time to time reduce its proportion of higher risk assets, such as Shariah-compliant equities and increase its asset allocation to lower risk assets, such as Sukuk and Shariah-compliant liquid assets, to safeguard the investment portfolio of the Fund provided that such investments are within the investment objective of the Fund. Additionally, for investments in debt markets, the Manager may reduce holdings in longer tenured assets and channel these monies into Shariah-compliant shorter-term deposits. When deemed necessary, the Manager may also utilize Shariah-compliant derivative instruments, subject to the SC Guidelines for purposes such as hedging.

55

The Fund may invest in foreign markets where the regulatory authorities are members of the International Organization of Securities Commission (“IOSCO”) including but not limited to the United States of America, the United Kingdom, France, Germany, Brazil, the Asia Pacific ex-Japan region (i.e. Hong Kong SAR, Taiwan, Korea, the People’s Republic of China, Indonesia, Malaysia, India, Thailand, the Philippines, Sri Lanka, Singapore, Vietnam, Australia and New Zealand) and the Middle Eastern and North African (“MENA”) countries (i.e. Egypt, Jordan, Oman, Qatar, Bahrain, the United Arab Emirates, Tunisia, Morocco and other markets of the region). The Fund’s investments in foreign markets will be subject to the limit set by BNM and any conditions imposed by the SC from time to time. Currently, this Fund’s holding in foreign investments will not exceed 30% of its NAV. The Manager may invest beyond this limit provided the necessary approvals are obtained from the relevant authorities (where necessary) and any increase will be reflected in a supplementary prospectus (if deemed necessary). Notwithstanding the aforesaid, the Manager may decide not to invest in foreign securities. * With effect from 30 September 2011, the asset allocation will be increased to 70%.

56

3.2 CIMB Islamic Sukuk Fund

Investment objective The Fund aims to gain higher than average income over the medium to long-term by investing in a diversified portfolio consisting principally of Sukuk, certificates of deposit, short-term money market instruments and other permissible investments under the Shariah principles. Any material changes to the investment objective of the Fund would require Unit holders’ approval. Benchmark The benchmark of the Fund is the Quantshop GII Medium Index. Information on the benchmark can be obtained from http://www.quantshop.com. Investment policy and principal investment strategy A minimum of 60%* and up to a maximum of 98% of the Fund’s NAV may be invested in Sukuk carrying at least a “BBB3” or “P2” rating by RAM or equivalent rating by MARC; “BBB” by S&P or equivalent rating by Moody’s or Fitch. The rest of the Fund is maintained in the form of Shariah-compliant liquid assets to meet any redemption payments to Unit holders. In line with its objective, the investment strategy and policy of the Fund is to invest in a diversified portfolio of approved Shariah-compliant fixed income securities consisting primarily of Sukuk, aimed to provide a steady stream of income. The asset allocation strategy for this Fund is as follows: � between 60%* to 98% (both inclusive) of the Fund’s NAV in Sukuk and/or other permissible investments; and � at least 2% of the Fund’s NAV in Shariah-compliant liquid assets. The asset allocation strategy will be reviewed periodically to suit market conditions. CIMB-Principal will adopt an active trading strategy and will be especially selective in the buying and selling of securities for the Fund. CIMB-Principal formulates an interest rate outlook through examining factors such as the Malaysian inflation rate, monetary policies and economic growth. With an interest rate outlook and yield curve analysis, CIMB-Principal identifies the weighting of the investment tenor and credit for the Fund. In the unlikely event of a credit rating downgrade, the Investment Manager reserves the right to deal with the security in the best interest of the Unit holders. As active fund managers, CIMB-Principal has in place flexible tolerance limits to cater to such situations. CIMB-Principal can for example, continue to hold the downgraded security if the immediate disposal of the security would not be in the best interest of the Unit holders. As part of its risk management strategy, the Fund is constructed and managed within pre-determined guidelines. Essentially, CIMB-Principal employs an active asset allocation strategy depending upon the equity market expectations, and at the same time monitors the Sukuk portfolio according to three (3) parameters: tenure, credit ratings and sector. The duration of the Sukuk portfolio is also monitored and modified according to the Manager’s interest rate outlook (i.e. the sensitivity of the portfolio to interest rate changes). In response to adverse conditions and as part of its risk management strategy, CIMB-Principal may reduce holdings in longer tenured assets and channel these monies into Shariah-compliant shorter-term deposits. The Manager may also from time to time invest in Shariah-compliant liquid assets to safeguard the investment portfolio of the Fund provided that such investments are within the investment objective of the Fund. When deemed necessary the Manager may also utilize Shariah-compliant derivative instruments, subject to the SC Guidelines, for purposes such as hedging. The Fund may invest in foreign markets where the regulatory authorities are members of the International Organization of Securities Commission (“IOSCO”) including but not limited to the United States of America, the United Kingdom, France, Germany, Brazil, the Asia Pacific ex-Japan region (i.e. Hong Kong SAR, Taiwan, Korea, the People’s Republic of China, Indonesia, Malaysia, India, Thailand, the Philippines, Sri Lanka, Singapore, Vietnam, Australia and New Zealand) and the Middle Eastern and North African (“MENA”) countries (i.e. Egypt, Jordan, Oman, Qatar, Bahrain, the United Arab Emirates, Tunisia, Morocco and other markets of the region). The Fund’s investments in foreign markets will be subject to the limit set by BNM and any conditions imposed by the SC from time to time. Currently, this Fund’s holding in foreign investments will not exceed 30% of its NAV. The Manager may invest beyond this limit provided the necessary approvals are obtained from the relevant authorities (where necessary) and any increase will be reflected in a supplementary prospectus (if deemed necessary). Notwithstanding the aforesaid, the Manager may decide not to invest in foreign securities.

* With effect from 30 September 2011, the asset allocation will be increased to 70%.

57

3.3 CIMB Islamic Money Market Fund

Investment objective The Fund aims to provide investors with liquidity and regular income, whilst maintaining capital stability by investing primarily in money market instruments that conform with Shariah principles. Any material changes to the investment objective of the Fund would require Unit holders’ approval. Benchmark The benchmark of the Fund is the CIMB Islamic 1-Month General Investment Account-I (GIA). Information on the benchmark can be obtained from http://www.cimbislamic.com Investment policy and principal investment strategy

The Fund will place at least 90% of its NAV in quality Islamic money market instruments such as Islamic Accepted Bills, Islamic Negotiable Instruments of Deposits and Islamic Repurchase Agreements (Repo-i) as well as in any other Shariah-compliant fixed income instruments and placements of Shariah-compliant deposits with financial institutions, all of which are highly liquid and have a remaining maturity period of less than 365 days. Up to 10% of the Fund’s NAV may be invested in Shariah-compliant fixed income instruments which have a remaining maturity period of more than 365 days but less than 732 days. The Fund will be actively managed. The strategy is to invest in liquid, low risk short-term investments with a high degree of capital preservation. The investment strategy adheres to the SC Guidelines pertaining to investments for a money market fund. As such any changes to these guidelines would tantamount to a change in this investment strategy. CIMB-Principal formulates an interest rate outlook by considering factors such as the Malaysian inflation rate, monetary policies and economic growth. With an interest rate outlook and yield curve analysis, CIMB-Principal identifies the weighting of the investment tenure and credit for the Fund. The ratings of the securities will be at least a “BBB3” or “P2” rating by RAM or equivalent rating by MARC; “BBB” by S&P or equivalent rating by Moody’s or Fitch. In the unlikely event of a credit rating downgrade, the Manager reserves the right to deal with the Shariah-compliant security in the best interest of the Unit holders. As active fund managers, CIMB-Principal has in place flexible tolerance limits to cater to such situations. CIMB-Principal can for example, continue to hold the downgraded Shariah-compliant security if the immediate disposal of the security would not be in the best interest of the Unit holders. As part of its risk management strategy, the Fund is constructed and managed within pre-determined guidelines CIMB-Principal will focus on managing the investment impact caused by the changes in the general interest rate trend and the credit risk profile of the individual debt issuers. The interest rate risk as mentioned earlier under “Risk Factors” chapter will be managed by investing mainly in Shariah-compliant securities with less than one (1) year to maturity, while credit risk will be managed via investments in investment grade securities that conform to Shariah principles. CIMB-Principal will take reasonable steps to ensure that the above potential risks are adequately managed by adopting various investment strategies, such as diversification in terms of asset allocation, credit and sectoral exposure, as well as duration management to appropriately adjust the risk and return characteristics of the Fund. The Fund may invest in foreign markets where the regulatory authorities are members of the International Organization of Securities Commission (“IOSCO”) including but not limited to the United States of America, the United Kingdom, France, Germany, Brazil, the Asia Pacific ex-Japan region (i.e. Hong Kong SAR, Taiwan, Korea, the People’s Republic of China, Indonesia, Malaysia, India, Thailand, the Philippines, Sri Lanka, Singapore, Vietnam, Australia and New Zealand) and the Middle Eastern and North African (“MENA”) countries (i.e. Egypt, Jordan, Oman, Qatar, Bahrain, the United Arab Emirates, Tunisia, Morocco and other markets of the region). The Fund’s investments in foreign markets will be subject to the limit set by BNM and any conditions imposed by the SC from time to time. Currently, this Fund’s holding in foreign investments will not exceed 30% of its NAV. The Manager may invest beyond this limit provided the necessary approvals are obtained from the relevant authorities (where necessary) and any increase will be reflected in a supplementary prospectus (if deemed necessary). Notwithstanding the aforesaid, the Manager may decide not to invest in foreign securities. Investment in the Fund is not the same as placing funds in a deposit with a financial institution. There are risks involved and investors should rely on their own evaluation to assess the merits and risks when investing in the Fund.

58

3.4 CIMB Islamic Deposit Fund

Investment objective The Fund aims to provide investors with liquidity and regular income, whilst maintaining capital stability by investing primarily in deposits that comply with the Shariah principles. Any material changes to the investment objective of the Fund would require Unit holders’ approval. Benchmark The benchmark of the Fund is the Islamic Interbank Overnight Rate. Information on the benchmark can be obtained from http://iimm.bnm.gov.my/index.php?ch=7 Investment policy and principal investment strategy The Fund seeks to achieve its objective by investing at least 95% of the Fund’s NAV in Shariah-compliant deposits with financial institutions. The remaining of the Fund’s NAV is maintained in cash or its equivalent for any expenses recoverable directly from the Fund in accordance with the Deeds and/or the SC Guidelines. The investment policy is to invest in liquid and low risk short-term investments with a high degree of capital preservation. The Fund will be actively managed to provide liquidity and to accommodate the short-term cash flow requirements of its Unit holders. Investment in the Fund is not the same as placement in deposit with a financial institution. There are risks involved and investors should rely on their own evaluation to assess the merits and risks when investing in the Fund. The asset allocation strategy for this Fund is as follows: � at least 95% of the Fund’s NAV will be invested in Shariah-compliant deposits with financial institutions; and � up to 5% of the Fund’s NAV is maintained in cash or its equivalent for any expenses recoverable directly from the Fund in

accordance with the Deeds and/or SC Guidelines. Risk management is at the core of our investment process. Every proposed decision made by the investment team is considered in the context of the overall portfolio risk-return trade-off. The risk management strategies and techniques employed by the Manager include diversification of the Fund’s asset allocation in terms of its counterparty exposure, as well as duration management to appropriately adjust the risk and return characteristics of the Fund. The risk management team works in tandem with the investment team to ensure that the level of risk is acceptable given the objective of the Fund and its overall targeted performances that are set against the relevant benchmark. The Fund will only invest in liquid and low risk short-term investments with a high degree of capital preservation. The Fund is constructed and managed within the pre-determined guidelines such as risk budgets, which will be monitored and reviewed regularly by the risk management team.

The Fund may invest in foreign markets where the regulatory authorities are members of the International Organization of Securities Commission (“IOSCO”) including but not limited to the United States of America, the United Kingdom, France, Germany, Brazil, the Asia Pacific ex-Japan region (i.e. Hong Kong SAR, Taiwan, Korea, the People’s Republic of China, Indonesia, Malaysia, India, Thailand, the Philippines, Sri Lanka, Singapore, Vietnam, Australia and New Zealand) and the Middle Eastern and North African (“MENA”) countries (i.e. Egypt, Jordan, Oman, Qatar, Bahrain, the United Arab Emirates, Tunisia, Morocco and other markets of the region). The Fund’s investments in foreign markets will be subject to the limit set by BNM and any conditions imposed by the SC from time to time. Currently, this Fund’s holding in foreign investments will not exceed 30% of its NAV. The Manager may invest beyond this limit provided the necessary approvals are obtained from the relevant authorities (where necessary) and any increase will be reflected in a supplementary prospectus (if deemed necessary). Notwithstanding the aforesaid, the Manager may decide not to make any investment in foreign markets.

59

SECTION 4: REGIONAL & GLOBAL FUNDS 4.1 CIMB Islamic Asia Pacific Equity Fund Investment objective CIMB Islamic Asia Pacific Equity Fund aims to achieve long-term capital appreciation and income while complying with Shariah investment criteria, through investments in the emerging and developed markets of Asia Pacific ex Japan region. Any material changes to the investment objective of the Fund would require Unit holders’ approval. Benchmark The benchmark of this Fund is the Dow Jones Islamic Market Asia/Pacific ex Japan Index. Information on the benchmark is available on http://www.djindexes.com Investment policy and principal investment strategy The Fund is predominantly an equity fund which invests through shares listed on the stock exchanges in the emerging and developed markets of Asia Pacific ex Japan, i.e. Hong Kong SAR, Taiwan, Korea, the People’s Republic of China, Indonesia, Malaysia, India, Thailand, the Philippines, Sri Lanka, Singapore, Australia and New Zealand. Between 70% to 98% (both inclusive) of the Fund’s NAV can be invested in Shariah-compliant equities, Shariah-compliant warrants, Shariah-compliant options or other Shariah-compliant stock purchase rights, participation in Shariah-compliant mutual funds and Shariah-compliant collective investment schemes which are permitted under the SC Guidelines. Up to 30% of the Fund may also invest into Sukuk and Shariah-compliant deposits. For this Fund, the investments in Sukuk must satisfy a minimum rating requirement of at least a “BBB3” or “P2” rating by RAM or equivalent rating by MARC; “BB” by S&P or equivalent rating by Moody’s or Fitch. The asset allocation strategy for this Fund is as follows: � at least 70% of the Fund’s NAV will be invested in Shariah-compliant equities and/or other permissible investments; � up to 30% of the Fund’s NAV in Sukuk and Shariah-compliant deposits; and � at least 2% of the Fund’s NAV in Shariah-compliant liquid assets. The foreign investment management function of the Fund has been delegated to CIMB-Principal Asset Management (S) Pte Ltd (“CIMB-Principal (S)”), as the Investment Manager with the approval of the SC and the Trustee. CIMB-Principal (S) will be responsible for investing and managing these foreign investments in accordance with the investment objective and within the investment restrictions. All costs of this appointment will be borne by the Manager to ensure no additional fee is levied on the Unit holders of this Fund. The Investment Manager will adopt an active investment strategy. The countries and securities invested in this Fund will undergo a rigorous research exercise before they are included in the respective portfolios. Even though the combination of both bottom-up and top-down investment approaches ultimately drive the process, the Investment Manager believes long-term investment performance can be achieved by employing a rigorous research process that enables the Investment Manager to identify companies that generate superior returns as well as by identifying companies that are undervalued. Fundamental and valuation analysis (bottom-up) forms an integral part of the Investment Manager’s research effort. Key elements of this include: � fundamental evaluation � valuation analysis � financial models In addition, company visits, meetings with management and participation in conference calls are important to the Investment Manager’s research effort. In the stock screening process, the Investment Manager will actively screen reasonable number of equities from a larger universe. The top-down assessment of the markets and asset allocation involves a detailed quarterly review of market conditions and risk adjusted expectations across asset classes and regions in order to establish internal targeted allocations for the various portfolios. The Investment Manager may invest the assets of the Fund, from time to time, in any industry or sector, which in its opinion offers good growth opportunity and investment value provided that the investments are within the investment objective of the CIMB Islamic Asia Pacific Equity Fund. As part of its risk management strategy, the Fund is constructed and managed within pre-determined guidelines. CIMB-Principal (S) employs an active asset allocation strategy depending upon the equity market expectations. Where appropriate, the Investment Manager will also employ an active trading strategy in managing the Fund. In response to adverse conditions and as part of its risk management strategy, CIMB-Principal (S) may from time to time reduce its proportion of higher risk assets, such as equities and increase its asset allocation to lower risk assets, such as debentures and liquid assets, to safeguard the investment portfolio of the Fund provided that such investments are within the investment objective of the Fund and conform to the Shariah principles. When deemed necessary, the Investment Manager may also utilize Shariah-compliant derivative instruments, subject to the SC Guidelines, for purposes such as hedging.

60

4.2 CIMB Islamic Greater China Equity Fund

Investment objective The Fund aims to provide investors with medium to long term capital appreciation by capitalizing on investments ideas in Shariah-compliant equities in the Greater China region. Any material changes to the investment objective of the Fund would require Unit holders’ approval. Benchmark The benchmark of the Fund is Dow Jones Islamic Market China/Hong Kong Titans Index. The information on the benchmark can be obtained from http://www.djindexes.com Investment policy and principal investment strategy The Fund seeks to achieve its objective by investing primarily in Shariah-compliant equities and Shariah-compliant equity related securities of companies based in the Greater China region which offer attractive valuations and medium to long term growth potentials. These include Shariah-compliant companies listed or to be listed on recognised exchanges of the People’s Republic of China, Hong Kong SAR and Taiwan as well as China-based companies listed on overseas recognised exchanges. These companies are typically medium to large-cap companies which are currently trading at very attractive valutions and which would ride on the future recovery and growth of the Greater China region and the global economy. Investments in the Fund will primarily be in securities in the Dow Jones Islamic Market Indexes (“DJIM”). Based on the Shariah investment guidelines approved by the Shariah Adviser as outlined in the section below, any securities which are listed under the DJIM shall be accepted and be treated as Shariah-compliant securities. Other securities outside DJIM will be duly screened based on parameters set out in the Shariah investment guidelines. These securities would need to be approved by the Shariah Adviser before the Manager or its delegate can proceed with investments. The Manager has appointed CIMB-Principal Asset Management (S) Pte Ltd (“CIMB-Principal (S)”), a company incorporated in Singapore as the Investment Manager of the CIMB Islamic Greater China Equity Fund with the approval of the SC and the Trustee. CIMB-Principal (S) will be responsible for investing and managing the Fund in accordance with the investment objective and within the investment restrictions. The Investment Manager will adopt an active investment strategy. The countries and securities invested in this Fund will undergo a rigorous research exercise before they are included in the respective portfolios. Even though the combination of both bottom-up and top-down investment approaches ultimately drive the process, the Investment Manager believes long-term investment performance can be achieved by employing a rigorous research process that enables them to identify companies that generate superior returns and companies that are undervalued as well as to identify the investments ideas of the Fund. The Investment Manager will, from time to time, revise its outlook on the investments ideas of the Fund to capitalise on the economic environment of the market at that time. For example, the Investment Manager is still positive on China growth. As China led Asia out of recession first, tightening ahead of major western developed economies, the Investment Manager believes that China will move back to a normal gross domestic product (“GDP”) growth trend ahead of other economies as well. Given current weaker than expected external environment especially in Euro zone, the Investment Manager is looking into industries or sectors which will benefit from further earnings upgrades, particularly those which will benefit from industry upgrading/restructuring or domestic demand. The Investment Manager is confident that China is changing its growth model to focus more on domestic consumption. Fundamental and valuation analysis (bottom-up) forms an integral part of the Investment Manager’s research effort. Their process is focused on the early identification of fundamental change. Key elements of this include: � improving and sustaining business fundamentals � rising investor expectations � attractive relative valuation The asset allocation strategy for this Fund is as follows: � up to 98% of the Fund’s NAV will be invested in Shariah-compliant equities and Shariah-compliant equity-related securities of

companies based in the Greater China region; and � at least 2% of the Fund’s NAV will be invested in Shariah-compliant liquid assets for liquidity purposes. Risk management, with an emphasis on portfolio diversification, will form an integral part of the investment process. The Fund is constructed and managed within pre-determined guidelines. Portfolio risk is to be diversified with uncorrelated alpha sources and risk exposures. The risk management strategies and techniques employed include diversification of the Fund’s asset allocation in terms of its exposure to various sectors, industries and companies. In times of adversity in equity markets and as part of its risk management strategy, the Investment Manager may from time-to-time reduce its proportion of equities and increase its asset allocation to liquid assets, to safeguard the investment portfolio of the Fund. The Investment Manager may take a temporary defensive position when it believes the markets or the economies are experiencing excessive volatility, a prolonged general decline or when other adverse conditions may exist. Under these circumstances, the Fund may be unable to pursue its investment goal. In response to adverse conditions, the Investment Manager may utilize Shariah-compliant derivative instruments such as Shariah-compliant futures and Shariah-compliant forward contracts to hedge the portfolio.

61

4.3 CIMB Islamic Global Emerging Markets Equity Fund Investment objective The Fund aims to provide investors with medium to long-term capital appreciation through investments in the global emerging markets and that conform with Shariah principles. Any material changes to the investment objective of the Fund would require Unit holders’ approval. Benchmark The benchmark of the Fund is Dow Jones Islamic Market Emerging Markets Index. The information on the benchmark can be obtained from http://www.djindexes.com Investment policy and principal investment strategy The Fund seeks to achieve its objective by investing principally in Shariah-compliant securities of companies domiciled or with their core business in the world’s emerging markets, which the Investment Manager believes are undervalued and have the potential for significant growth.

Emerging markets include those countries classified as emerging markets by the International Monetary Fund (IMF) and other emerging market countries that the Investment Manager believes present attractive investment opportunities. Emerging markets include, but not limited to Brazil, Chile, Czech Republic, Egypt, Estonia, Hungary, Indonesia, Mexico, Morocco, Malaysia, Peru, Philippines, Poland, Slovakia, South Africa, South Korea, Taiwan, Thailand and Turkey. Whilst the Fund is an emerging markets fund, there may be circumstances where the Fund has invested in an emerging market but due to economic development, that market is no longer classified as an emerging market. In this regard, the Investment Manager will seek to liquidate such investments as soon as practical to the extent consistent with the best interests of the Unit holders of the Fund. Further, if the disposal of such investments will be detrimental to the Fund or will not be in the best interests of the Unit holders, the Investment Manager may dispose of such investments in such manner and/or at such timing as may be approved by the Manager and the Trustee. The Fund will only invest in securities that conform with Shariah principles and which are listed or traded on selected global emerging markets, where as per the SC Guidelines, the regulatory authority is a member of the International Organization of Securities Commissions (“IOSCO”). The Fund may invest in the securities either directly or via collective investment schemes. The Fund may also invest in American Depositary Receipts ("ADRs") and Global Depositary Receipts (“GDR”). Investments of the Fund will primarily be in securities in the Dow Jones Islamic Market Emerging Markets Index, a subset or component of the Dow Jones Islamic Market Indexes (“DJIM”). Based on the Shariah investment guidelines approved by the Shariah Adviser as outlined in the below section, any securities which are listed under the DJIM shall be accepted and be treated as Shariah-compliant securities. Other securities outside DJIM will be duly screened based on parameters set out in the Shariah investment guidelines. These securities would need to be approved by the Shariah Adviser before the Investment Manager or its delegate can proceed with investments. A list of such securities shall be maintained and the Shariah Adviser shall review the list on a quarterly basis. The investment management function of the Fund has been delegated to Principal Global Investors, LLC (“the Investment Manager”). For further details on the Investment Manager, please refer to “Investment Managers” chapter. The equity investment philosophy of the Investment Manager is based on the belief that superior stock selection is the key to consistent out performance. Bottom-up stock selection is the key driver of relative performance, while systematic risks, such as top-down macro exposures such as country allocation bias, sector biases and capitalization biases, play little role in the Investment Manager’s approach. In other words, the Investment Manager seeks to add value by differentiating stocks within sectors and regions, while minimizing unintended systematic biases. For the purpose of efficient portfolio management, the Investment Manager may, within the context of its investment strategies, and within the limits set forth in the investment restrictions and limits, engage in certain transactions involving the use of Shariah-compliant derivatives instruments, including but not limited to Shariah-compliant options, Shariah-compliant futures, OTC Shariah-compliant derivative instruments (including forward contracts and swaps). Use of these instruments will generally be made for currency risk management purposes and/or as a hedge against any adverse movement in the value of securities invested. However, the Investment Manager does not plan to utilize the Shariah-compliant derivatives on a regular basis. A transaction is deemed to be for efficient portfolio management if: � it is economically appropriate; � the exposure is fully covered (to meet any obligation to pay or deliver); � it has at least one of the following aims:

- reduction of risk; - reduction of cost with no increase or a minimal increase in risk; or - generation of additional capital or income for the Fund with no increase or a minimal increase in risk.

In determining if a transaction is economically appropriate, the Investment Manager should have a reasonable belief that: � where it is undertaken to reduce risk or cost (or both), it will diminish a risk or cost which is sensible to reduce; � where it is undertaken to generate additional capital or income, the Fund is certain (barring events which are not reasonably

foreseeable) to derive a benefit from this transaction.

62

The asset allocation strategy for this Fund is as follows: � up to 98% of the Fund’s NAV will be invested in global emerging market securities that conform with Shariah principles; and � at least 2% of the Fund’s NAV will be invested in Shariah-compliant liquid assets for liquidity purposes. Risk management strategy Risk management is at the core of our investment process. Every proposed decision made by the Investment Manager is considered in the context of the overall portfolio risk-return trade-off. Each portfolio has a risk budget established (expressed as expected tracking error relative to the benchmark) that reflects the objectives and risk tolerance of the Fund. Portfolio managers operate in a disciplined environment that emphasizes clear portfolio guidelines. The primary objective is to neutralize systematic risk (market risk) and isolate the alpha potential to individual stock selection. In other words, sector, industry and country exposure is limited to a specified percentage of the market index. Temporary defensive positions The Investment Manager may take a temporary defensive position when it believes the markets or the economies are experiencing excessive volatility, a prolonged general decline or when other adverse conditions may exist. Under these circumstances, the Fund may be unable to pursue its investment goal. In response to adverse conditions, the Investment Manager may utilize Shariah-compliant derivative instruments such as Shariah-compliant futures and Shariah-compliant forward contracts to hedge the portfolio. Substantially all of the Fund’s NAV may be invested in Islamic money market instruments to safeguard the investment portfolio.

63

4.4 CIMB Islamic Global Equity Fund Investment objective The Fund aims to provide investors with medium to long-term capital appreciation, through investments in the global markets that comply with Shariah principles.

Any material changes to the investment objective of the Fund would require Unit holders’ approval. Benchmark The benchmark of the Fund is Dow Jones Islamic Market IndexSM (also known as, the Dow Jones Islamic Market World IndexSM). The information on the benchmark can be obtained from http://www.djindexes.com Investment policy and principal investment strategy The Fund will invest at least 70% of its NAV in Shariah-compliant equities globally, subject to a maximum of 99.5%. It is the intention of the Fund to invest principally in global equities, but it may strategically utilize its liquid assets to reduce short-term volatility to suit the market conditions. The investment strategy and policy of the Fund lies on its rebalancing measure within the Shariah-compliant stocks, which seek to outperform the market at different cycles of the market, thus providing for long-term capital growth of the Fund. The asset allocation strategy for this Fund is as follows: � between 70% to 99.5% (both inclusive) of the Fund’s NAV can be invested in Shariah-compliant global equities and/or other

permissible investments; and � at least 0.5% of the Fund’s NAV will be invested in Shariah-compliant liquid assets. The asset allocation will be reviewed periodically depending on the country’s economic and stock market outlook. The Fund seeks to achieve its objective by investing principally in equities which are Shariah-compliant selected from investment markets around the world, which the Manager believes are undervalued and have the potential for significant growth. Shariah-compliant equities, for the purposes of the investment objective and strategies include Shariah-compliant common stocks, Shariah-compliant preferred stocks, Shariah-compliant warrants or rights to subscribe to or purchase, or convert into such securities.

Investments of the Fund will primarily be in securities in the Dow Jones Islamic Markets World Index, a subset or component of the Dow Jones Islamic Market Indexes (“DJIM”). Based on the Shariah investment guidelines approved by the Shariah Adviser as outlined in the below section, any securities which are listed under the DJIM shall be accepted and be treated as Shariah-compliant securities. Other securities outside DJIM will be duly screened based on parameters set out in the Shariah investment guidelines. These securities would need to be approved by the Shariah Adviser before the Manager or its delegate can proceed with investments. A list of such securities shall be maintained and the Shariah Adviser shall review the list on a quarterly basis.

The Fund will only invest in securities that conform with Shariah principles and which are listed or traded on selected global markets, where as per the SC Guidelines, the regulatory authority is a member of the International Organization of Securities Commissions (“IOSCO”). These include, but are not limited to, the following countries: Australia, Austria, Belgium, Bermuda, Brazil, Canada, Chile, Denmark, Finland, France, Germany, Greece, Hong Kong SAR, Hungary, Indonesia, Ireland, Italy, Japan, Luxembourg, Malaysia, Malta, Mexico, the Netherlands, New Zealand, Norway, the Philippines, Poland, Singapore, Slovenia, South Korea, South Africa, Spain, Sweden, Switzerland, Taiwan, Thailand, the United Kingdom, the United States of America and India. The Fund may invest in the securities either directly or via collective investment schemes. The investment management function of the Fund has been delegated to Principal Global Investors, LLC (“the Investment Manager”). For further details on the Investment Manager, please refer to “Investment Managers” chapter. The equity investment philosophy of the Investment Manager is based on the belief that superior stock selection is the key to consistent out performance. Bottom up stock selection is the key driver of relative performance, while systematic risks, such as top-down macro exposures such as country allocation bias, sector biases and capitalization biases, play little role in our approach. In other words, we seek to add value by differentiating stocks within sectors and regions, while minimizing unintended systematic biases. For the purpose of efficient portfolio management, the Investment Manager may, within the context of its investment strategies, and within the limits set forth in the investment restrictions and limits, engage in certain transactions involving the use of Shariah-compliant derivatives instruments, including but not limited to Shariah-compliant options, Shariah-compliant futures, OTC Shariah-compliant derivative instruments (including forward contracts and swaps). Use of these instruments will generally be made as a hedge against any adverse movement in the value of securities invested.

A transaction is deemed to be for efficient portfolio management if: � it is economically appropriate; � the exposure is fully covered (to meet any obligation to pay or deliver); � it has at least one of the following aims:

- reduction of risk; - reduction of cost with no increase or a minimal increase in risk; or - generation of additional capital or income for the Fund with no increase or a minimal increase in risk.

In determining if a transaction is economically appropriate, the Investment Manager should have a reasonable belief that: � where it is undertaken to reduce risk or cost (or both), it will diminish a risk or cost which is sensible to reduce; � where it is undertaken to generate additional capital or income, the Fund is certain (barring events which are not reasonably

foreseeable) to derive a benefit from this transaction.

64

As part of its risk management strategy, the Fund is constructed and managed within pre-determined guidelines. PGI employs an active asset allocation strategy depending upon the equity market expectation. Where appropriate, the Investment Manager will also employ and active trading strategy in managing the Fund. As this is an equity fund which has a minimum of 70% Shariah-compliant equity exposure, the Investment Manager is unable to take equity exposure down substantially if it feels that the market is close to its peak. Hence, the Investment Manager will take a defensive stance and invest in Shariah-compliant stocks that have low correlation to market movements. Notwithstanding the aforesaid, in times of adversity in equity markets and as part of its risk management strategy, PGI may from time to time reduce its proportion of higher risk assets, such as Shariah-compliant equities and increase its asset allocation to lower risk assets, such as Sukuk and Shariah-compliant liquid assets, to safeguard the investment portfolio of the Fund provided that such investments are within the investment objective of the Fund. When deemed necessary, the Investment Manager may also utilize Shariah-compliant derivative instruments, subject to the SC Guidelines, for purposes such as hedging.

65

4.5 CIMB Islamic Global Commodities Equity Fund Investment objective The Fund seeks to provide capital growth over the medium to long term through investments in global commodity-related securities, predominantly in commodity-related equities, which conforms to Shariah principles. Any material changes to the investment objective of the Fund would require Unit holders’ approval. Benchmark The benchmark of the Fund is 50% Dow Jones Islamic Market Oil & Gas Index + 50% Dow Jones Islamic Market Basic Materials Index. The combination of indexes for the above benchmark represents the coverage of the investment universe and reflects the opportunity set for the Fund. The information on the benchmark can be obtained from http://www.djindexes.com Investment policy and principal investment strategy The investment strategy and policy of the Fund is to invest in global commodity-related securities, predominantly in commodity-related equities and equity-related securities, which conforms to Shariah principles. The Fund will invest at least 70% of its NAV in Shariah-compliant equities and Shariah-compliant equity-related securities of companies that are primarily engaged in activities related to commodities. These companies would include but not limited to those in the sector of basic materials (i.e. precious metals), energy (i.e. crude oil), renewable energy (i.e. hydropower) and agriculture (i.e. plantation). At least 2% of the Fund’s NAV will be invested in liquid assets for liquidity purposes. The Manager or its delegate may also invest in Shariah-compliant derivatives if it presents a more compelling alternative to equities, but subject to a maximum of 28% of the Fund’s NAV. The underlying assets of the Shariah-compliant derivatives shall be related/linked to commodities, which include, but not limited to commodity exchange-traded funds and commodity indexes. These securities would need to be approved by the Shariah Adviser before the Manager or its delegate can proceed with investments. As the Fund is a global fund, the countries in which the Fund may invests in includes, but not limited to Malaysia, Australia, Austria, Belgium, Bermuda, Brazil, Canada, Chile, the People’s Republic of China, Columbia, Cyprus, Czech Republic, Denmark, Egypt, Finland, France, Germany, Greece, Hong Kong SAR, Hungary, India, Indonesia, Ireland, Italy, Japan, Luxembourg, Mexico, Morocco, the Netherlands, New Zealand, Norway, Peru, the Philippines, Poland, Portugal, Russia, Singapore, South Africa, South Korea, Spain, Sweden, Switzerland, Taiwan, Thailand, Turkey, the United Kingdom and the United States of America. Schroder Investment Management (Singapore) Ltd has been appointed as the Investment Manager to manage the Fund’s portfolio. The Investment Manager will implement an investment strategy that looks for high quality reasonably priced commodity-related companies with strong growth prospects and a sustainable competitive advantage that will produce superior long term investment returns. This is done by incorporating in-depth fundamental research, a comprehensive macroeconomic viewpoint and thematic roadmap, to identify companies whose growth is undervalued by the market. In doing this, the Investment Manager uses a disciplined investment process that is focused on bottom-up stock selection to drive value-added as well as a team-based, rigorous, total portfolio construction process. Fundamental research is drawn from the extensive coverage of Schroder group more than 70 local equity analysts based in 12 countries around the globe. The strongest ideas are then overlaid with the global perspective of 9 dedicated portfolio managers and global sector specialists, based in London. The Investment Manager believes that this knowledge “matrix” (global sector/regional expertise) provides an optimal framework for identifying strong investment candidates comprising of our highest conviction ideas and thereafter, building high-quality portfolio across multiple regions and sectors. The asset allocation strategy for this Fund is as follows: � at least 70% of the Fund’s NAV will be invested in Shariah-compliant equities and Shariah-compliant equity related securities of

companies that are primarily engaged in activities related to commodities; � the Fund may also invest up to 28% of its NAV in Shariah-compliant derivatives, which underlying assets are related/linked to

commodities including commodity exchange-traded funds and commodity indexes; and � at least 2% of the Fund’s NAV will be invested in Shariah-compliant liquid assets for liquidity purposes. Risk management strategy Risk management, with an emphasis on portfolio diversification, will form an integral part of the investment process. The Fund is constructed and managed within pre-determined guidelines including risk returns trade-off, which will be monitored and reviewed regularly by the risk management team. In times of adversity in equity markets and as part of its risk management strategy, the Manager or its fund management delegate may from time-to-time reduce its proportion of equities and increase its asset allocation to liquid assets, to safeguard the investment portfolio of the Fund. Temporary defensive positions The Manager or its fund management delegate may take a temporary defensive position when it believes the markets or the economies are experiencing excessive volatility, a prolonged general decline or when other adverse conditions may exist. Under these circumstances, the Fund may be unable to pursue its investment goal. In response to adverse conditions, the Manager or its fund management delegate may utilize Shariah-compliant derivative instruments such as Shariah-compliant futures and Shariah-compliant forward contracts to hedge the portfolio. The Manager or its fund management delegate may from time-to-time reduce its proportion of risky assets and increase its asset allocation to liquid assets, to safeguard the investment portfolio of the Fund.

66

4.6 CIMB Islamic Kausar Lifecycle Funds

The CIMB Islamic Kausar Lifecycle Funds is a series of three (3) Islamic open-ended funds with differing maturity periods that match your investment plan. The Funds are: (i) CIMB Islamic Kausar Lifecycle Fund 2017 (ii) CIMB Islamic Kausar Lifecycle Fund 2022 (iii) CIMB Islamic Kausar Lifecycle Fund 2027 Each Fund has its own investment objective, time horizon and recommended asset allocation. The Fund is designed to extract best growth potentials by investing a greater proportion of the investment portfolio into risky assets (such as equities) at the onset of the Fund’s life. This is expected to match investor’s ability to accept greater risk during the early stages of their investment. As the Fund approaches maturity, the Fund will become increasingly conservative by reducing risky asset composition and investing a greater proportion into more conservative assets such as Sukuk. This is reflective of investor’s decreasing risk appetite as they prepare to drawdown their investment to meet their goals. When selecting the Fund to meet your investment requirement, you are advised to consider the anticipated time you have prior to the investment drawdown. Investors should choose a Fund’s maturity year is prior to their investment drawdown requirement. It is important to note that the target year of the Fund you select should not necessarily represent the specific year you intend to draw your investments. This serves only as a guide. You should also realise that the Funds are not a complete solution to your cash flow needs. You must weigh many factors such as retirement needs, lifestyle needs and so forth. When in doubt, please consult your financial adviser. Investment objective CIMB Islamic Kausar Lifecycle 2017 aims to provide investors with capital growth through a well-diversified and evolving asset allocation which conforms to Shariah principles. CIMB Islamic Kausar Lifecycle 2022 aims to provide investors with capital growth through a well-diversified and evolving asset allocation which conforms to Shariah principles. CIMB Islamic Kausar Lifecycle 2027 aims to provide investors with capital growth through a well-diversified and evolving asset allocation which conforms to Shariah principles. Any material changes to the objective of the Fund would require Unit holders’ approval Benchmark The benchmark changes every five (5) years from its commencement date of the Fund, i.e. 10 August 2007 in accordance with the change in asset allocation of each Fund. The benchmark will be a combination of the following:

Rate / Index Source

CIMB Islamic 12-Month General Investment Account-i (GIA) http://www.cimbislamic.com

FBM EMAS Shariah Index http://www.bursamalaysia.com

Dow Jones Islamic Market World Index http://www.djindexes.com

Alternatively, the information on the benchmark is available on http://www.cimb-principal.com.my CIMB Islamic Kausar Lifecycle 2017

Rate / Index Current 2012

until maturity

CIMB Islamic 12-Month General Investment Account-i (GIA) 35% 45%

FBM EMAS Shariah Index 30% 25%

Dow Jones Islamic Market World Index 35% 30% Currently, it will remain as CIMB Islamic 12-Month General Investment Account-i (GIA) (35%) + FBM EMAS Shariah Index (30%) + Dow Jones Islamic Market World Index (35%). In one (1) year’s time i.e. 2012, it will be CIMB Islamic 12-Month General Investment Account-i (GIA) (45%) + FBM EMAS Shariah Index (25%) + Dow Jones Islamic Market World Index (30%).

67


Rate / Index Current 2012 2017

until maturity

CIMB Islamic 12-Month General Investment Account-i (GIA) 30% 35% 45%

FBM EMAS Shariah Index 30% 30% 25%

Dow Jones Islamic Market World Index 40% 35% 30% Currently, it will remain as CIMB Islamic 12-Month General Investment Account-i (30%) + FBM EMAS Shariah Index (30%) + Dow Jones Islamic Market World Index (40%). In one (1) year’s time i.e. 2012, it will be CIMB Islamic 12-Month General Investment Account-i (35%) + FBM EMAS Shariah Index (30%) + Dow Jones Islamic Market World Index (35%). In six (6) years’ time i.e. 2017, it will be CIMB Islamic 12-Month General Investment Account-i (45%) + FBM EMAS Shariah Index (25%) + Dow Jones Islamic Market World Index (30%). CIMB Islamic Kausar Lifecycle 2027

Rate / Index Current 2012 2017 2022

until maturity

CIMB Islamic 12-Month General Investment Account-i 25% 30% 35% 45%

FBM EMAS Shariah Index 30% 30% 30% 25%

Dow Jones Islamic Market World Index 45% 40% 35% 30% Currently, it will remain as CIMB Islamic 12-Month General Investment Account-i (25%) + FBM EMAS Shariah Index (30%) + Dow Jones Islamic Market World Index (45%). In one (1) year’s time i.e. 2012, it will be CIMB Islamic 12-Month General Investment Account-i (30%) + FBM EMAS Shariah Index (30%) + Dow Jones Islamic Market World Index (40%). In six (6) years’ time i.e. 2017, it will be CIMB Islamic 12-Month General Investment Account-i (35%) + FBM EMAS Shariah Index (30%) + Dow Jones Islamic Market World Index (35%). In eleven (11) years’ time i.e. 2022, it will be CIMB Islamic 12-Month General Investment Account-i (45%) + FBM EMAS Shariah Index (25%) + Dow Jones Islamic Market World Index (30%). Note: The benchmark weightings may change if the Manager deems the set weightings no longer reflect the Fund’s asset

allocation. Investment policy and principal investment strategy Each Fund will invest its assets into a well-diversified portfolio comprising of the following asset classes: � Shariah-compliant liquid assets; � Local/foreign Sukuk; � Shariah-compliant local equities; � Shariah-compliant equities from developed markets; � Shariah-compliant equities from emerging markets; and � Shariah-compliant local/foreign REITs.

Each Fund seeks to achieve its investment objective by investing in different combinations of the asset classes and the asset allocation will change over time. The allocations into the asset classes differ from one Fund to another depending upon the investment tenure of the Fund. At the onset of each Fund, a greater proportion of the Fund’s NAV will be invested into risky assets such as Shariah-compliant equities. As the Fund approaches its maturity, allocation to less risky assets such as Sukuk will increase. CIMB-Principal combines a top-down asset and sector allocation process with a bottom-up stock selection process. The asset allocation decision is made after a review of macroeconomic trends in Malaysia and other global economies. In particular, the Manager analyzes the direction of gross domestic product (“GDP”) growth, interest rates, inflation, currencies and government policies. The Manager will then assess their impact on corporate earnings and determine if there are any predictable trends. These trends form the basis for sector selection. Stock selection is based on the growth style of equity investing. As such, the criteria for stock selection would include improving fundamentals and growth at reasonable valuations. Stock valuation fundamentals considered are earnings per share growth rate, return on equity, price earnings ratio and net tangible assets multiples. In particular, the Manager will adopt an active investment strategy to invest in the appropriate asset classes based on the efficient portfolio approach within the target asset allocation (as set out in the section below), taking into account the changing investment conditions. An efficient portfolio is a portfolio that provides the greatest expected return for a given level of risk, or equivalently, the lowest risk for a given expected return. In addition to this, the Manager will also adopt a rebalancing discipline throughout the life of the Fund to keep the portfolio within the target asset allocation limits. For the purposes of these Funds, the Manager will only select securities which comply with Shariah principles. The Sukuk portion can be actively traded based on the outlook of the economy, interest rates, the shape of the future yield curve, relative valuations as well as technical factors such as liquidity. The minimum ratings requirements will be at least “BBB3” or “P2” by RAM or equivalent rating by MARC; “B1” by Moody’s and/or “BB” by S&P or Fitch. The Manager will consider the level of duration risk to be taken to obtain the best returns for the level of risk taken.

68

Each Fund will also invest into equities listed on local and/or selected global stock markets (which include developed and emerging markets) as well as REITs which are Shariah-compliant. The Manager may opt to invest into these securities either directly or via collective investment schemes. In evaluating the suitability of collective investment schemes for investment, the Manager will conduct a review of the track record of the manager and the collective investment schemes, investment objective of the collective investment schemes, investment policy and strategies, fund performance and other factors deemed important by the Manager. The collective investment schemes shall be registered with recognized exchanges and/or authorities including, but not limited to, the following countries: Malaysia, Ireland, Luxembourg, Hong Kong SAR, Singapore, Australia, Japan, the United States of America and the United Kingdom. In identifying companies for selection, the Manager looks into both fundamental and valuation analysis, which include the management quality, products and services, industry position, current financial condition, earnings prospects and valuation attractiveness. Asset allocation The asset allocation will gradually become more conservative as it approaches the maturity of each Fund, which is indicated in the Fund’s name. The asset allocation for each Fund’s investments is as follows: Based on % of NAV of the Fund

Current asset allocation

Asset allocation in 2012




Shariah-compliant liquid assets 0-5 0-5

Local/foreign Sukuk 10-50 20-60

Shariah-compliant local equities 20-35 15-35

Shariah-compliant equities from developed markets 15-30 10-25

Shariah-compliant equities from emerging markets 0-10 0-10

Shariah-compliant local/foreign REITs 0-10 0-15


Shariah-compliant liquid assets 0-5 0-5 0-5

Local/foreign Sukuk 10-35 10-50 20-60

Shariah-compliant local equities 20-35 20-35 15-35

Shariah-compliant equities from developed markets 20-35 15-30 10-25

Shariah-compliant equities from emerging markets 0-15 0-10 0-10

Shariah-compliant local/foreign REITs 0-10 0-10 0-15


Shariah-compliant liquid assets 0-5 0-5 0-5 0-5

Local/foreign Sukuk 10-30 10-35 10-50 20-60

Shariah-compliant local equities 20-40 20-35 20-35 15-35

Shariah-compliant equities from developed markets 20-40 20-35 15-30 10-25

Shariah-compliant equities from emerging markets 0-20 0-15 0-10 0-10

Shariah-compliant local/foreign REITs 0-10 0-10 0-10 0-15

The Manager may modify the target asset allocation for each Fund. From time to time, the Fund may adjust its investments within set limits based on the Manager’s outlook for the economy, financial markets generally and relative market valuation of the asset classes. Additionally, the Fund may deviate from the set limits when, in the Manager’s opinion, it is necessary to do so to pursue the Fund’s investment objective. However, the amounts it allocates to each asset class will generally vary only within 10% of the ranges specified in the table above. Review and rebalancing discipline Monitoring the Fund’s investments is a continuous process that requires the Manager to evaluate events and trends affecting the prospects of asset class holdings and their suitability for attaining the investment objective. Changes in asset values over time may also create unintended divergences from the target asset allocation. These lead to the need to review and rebalance the Fund’s investments to ensure the investment objective is achieved. The term rebalancing means adjusting the actual portfolio to the target asset allocation. For example, if the target proportion for the local equities portion is 20% to 35% of the Fund’s NAV, trigger points will be at 20% and 35% of the Fund’s NAV. Suppose the Manager observes the actual allocation to be 43%, the upper threshold (35%) has been breached. The Manager will then decide whether to rebalance the portfolio to its target weights, i.e. between 20% to 35% of the Fund’s NAV. For the purposes of these Funds, the review of the asset allocation is done on an annual basis after the commencement date of the Fund i.e. 10 August 2007. The review on these intervals aims to keep the portfolio within the target asset allocation. The Manager

69

will then decide whether to rebalance the portfolio to target weights, taking into consideration the market expectation, benefits and cost of rebalancing. Fund’s Termination on Maturity Date

The Fund will be automatically terminated on its Maturity Date as follows:

CIMB Islamic Kausar Lifecycle 2017 CIMB Islamic Kausar Lifecycle 2022 CIMB Islamic Kausar Lifecycle 2027

The 10th anniversary of the commencement date of the Fund i.e. 10

August 2017.


August 2022.


August 2027.

Investors will have the option to switch their monies into any of the CIMB-Principal funds without charges, or to withdraw their investments. However, investors are encouraged to reinvest their monies into CIMB-Principal range of Shariah-compliant fixed income funds. For further details please refer to page 120. Risk management strategy The Fund is constructed and managed within pre-determined guidelines. The risk management strategies and techniques employed by the Manager include diversification of the Fund’s asset allocation in terms of its exposure to various asset classes, sectors and countries. Temporary defensive positions The Manager may take a temporary defensive position when it believes the markets or the economies are experiencing excessive volatility, a prolonged general decline or when other adverse conditions may exist. Under these circumstances, the Fund may be unable to pursue its investment goal. In response to such adverse conditions, The Manager may reduce the proportion of higher risk Shariah-compliant assets, such as equities and increase the allocation of assets with lower risk Shariah-compliant assets, such as Sukuk and liquid assets, to temporarily reduce the market exposure. When deemed necessary, the Manager may also utilize Shariah-compliant derivative instruments, subject to the SC Guidelines, for purposes such as hedging.

Part B

Foreign market admission requirements The Funds have obtained prior approval from the relevant regulatory authorities before investing into India, South Korea and Taiwan. The affected Funds are:

Funds India South Korea Taiwan

CIMB Islamic Dali Equity Fund √ √ √

CIMB Islamic Equity Fund √ √ √

CIMB Islamic Balance Fund √ √ √

CIMB Islamic Asia Pacific Equity Fund √ √ √

CIMB Islamic Greater China Equity Fund - - √

CIMB Islamic Global Emerging Market Equity Fund - - √

CIMB Islamic Global Equity Fund √ - -

Foreign market admission requirements: � India: Foreign Institutional Investors (FII) certificate issued by the Securities Exchange Board of India (SEBI), annual renewal

of the FII is not required; � South Korea: Investment Registration Certificate (IRC) issued by the Financial Supervisory Service (FSS), annual renewal of

the IRC is not necessary; and � Taiwan: Foreign Institutional Investors (FINI) license issued by the Taiwan Stock Exchange, annual renewal of the FINI is not

required. In the event the licenses/permits are revoked or not renewed (as the case may be), the Manager will seek to invest in other accessible markets.

70

Part C

Authorised investments Subject to the Deeds, the investment policies for the Funds and the requirements of the SC and any other regulatory body, the Manager has the absolute discretion as to how the assets of the Funds are to be invested. Under the Deeds, the Funds can invest in a wide range of securities, including but not limited to those as set out below.

SECTION 1: EQUITY FUNDS 1.1 CIMB Islamic DALI Equity Growth Fund The following types of investments, including but not limited to: � Equities and debentures traded in or under the rules of an Eligible Market; � Warrants that carry the right in respect of a security traded in or under the rules of an Eligible Market; � Unlisted securities including securities not listed or quoted on a stock exchange but have been approved by the relevant

regulatory authority for such listing or quotation and are offered directly to the fund by the issuer; � Deposits and money market instruments; � Derivative instruments, including but not limited to options, futures contracts, forward contracts and swaps; � All types of collective investment schemes (both local and foreign); � Structured products; � Securities listed or traded on foreign markets where the regulatory authority is a member of the International Organization of

Securities Commissions (“IOSCO”); and � Any other form of investments as may be permitted by the SC from time to time that is in line with the Fund’s objectives.

Provided always that the permitted investments as set out above shall at all times conform with the requirements of the Shariah principles and the advice of the Shariah Adviser for the time being appointed by the Manager.

1.2 CIMB Islamic DALI Equity Fund The following types of investments, including but not limited to: � Equities and debentures traded in or under the rules of an Eligible Market; � Warrants that carry the right in respect of a security traded in or under the rules of an Eligible Market; � Unlisted securities including securities not listed or quoted on a stock exchange but have been approved by the relevant




1.3 CIMB Islamic DALI Equity Theme Fund The following types of investments, including but not limited to: � Equities and debentures traded in or under the rules of an Eligible Market; � Warrants that carry the right in respect of a security traded in or under the rules of an Eligible Market; � Unlisted securities including securities not listed or quoted on a stock exchange but have been approved by the relevant

regulatory authority for such listing or quotation and are offered directly to the fund by the issuer; � Deposits and money market instruments; � Derivative instruments, including but not limited to options, futures contracts, forward contracts and swaps; � All types of collective investment schemes; � Structured products; and � Any other form of investments as may be permitted by the SC from time to time that is in line with the Fund’s objectives.


1.4 CIMB Islamic Equity Fund The following types of investments, including but not limited to: � Equities and debentures traded in or under the rules of an Eligible Market; � Warrants that carry the right in respect of a security traded in or under the rules of an Eligible Market;

71

� Unlisted securities including securities not listed or quoted on a stock exchange but have been approved by the relevant regulatory authority for such listing or quotation and are offered directly to the fund by the issuer;

� Deposits and money market instruments; � Derivative instruments, including but not limited to options, futures contracts, forward contracts and swaps; � All types of collective investment schemes (both local and foreign); � Structured products; � Securities listed or traded on foreign markets where the regulatory authority is a member of the International Organization of



1.5 CIMB Islamic Equity Aggressive Fund The following types of investments, including but not limited to: � Equities and debentures traded in or under the rules of an Eligible Market; � Warrants that carry the right in respect of a security traded in or under the rules of an Eligible Market; � Unlisted securities including securities not listed or quoted on a stock exchange but have been approved by the relevant

regulatory authority for such listing or quotation and are offered directly to the fund by the issuer; � Deposits and money market instruments; � Derivative instruments, including but not limited to options, futures contracts, forward contracts and swaps; � All types of collective investment schemes; � Structured products; � Any other form of investments as may be permitted by the SC from time to time that is in line with the Fund’s objectives.


1.6 CIMB Islamic Small Cap Fund The following types of investments, including but not limited to: � Equities and debentures traded in or under the rules of an Eligible Market; � Warrants that carry the right in respect of a security traded in or under the rules of an Eligible Market; � Unlisted securities including securities not listed or quoted on a stock exchange but have been approved by the relevant



SECTION 2: MIXED ASSET FUNDS 2.1 CIMB Islamic Balanced Fund The following types of investments, including but not limited to: � Equities and debentures traded in or under the rules of an Eligible Market; � Warrants that carry the right in respect of a security traded in or under the rules of an Eligible Market; � Unlisted securities including securities not listed or quoted on a stock exchange but have been approved by the relevant




2.2 CIMB Islamic Balanced Growth Fund The following types of investments, including but not limited to: � Equities and debentures traded in or under the rules of an Eligible Market;

72

� Warrants that carry the right in respect of a security traded in or under the rules of an Eligible Market; � Unlisted securities including securities not listed or quoted on a stock exchange but have been approved by the relevant



SECTION 3: FIXED INCOME & MONEY MARKET FUNDS 3.1 CIMB Islamic Enhanced Sukuk Fund The following types of investments, including but not limited to: � Equities and debentures traded in or under the rules of an Eligible Market; � Warrants that carry the right in respect of a security traded in or under the rules of an Eligible Market; � Unlisted securities including securities not listed or quoted on a stock exchange but have been approved by the relevant




3.2 CIMB Islamic Sukuk Fund The following types of investments, including but not limited to: � Equities and debentures traded in or under the rules of an Eligible Market; � Warrants that carry the right in respect of a security traded in or under the rules of an Eligible Market; � Unlisted securities including securities not listed or quoted on a stock exchange but have been approved by the relevant




3.3 CIMB Islamic Money Market Fund The following types of investments, including but not limited to: � Shariah-compliant debentures traded on Bursa Malaysia or any other market considered as an Eligible Market; � Malaysian currency balances in hand, Malaysian currency deposits and placements of money at call that are Shariah-

compliant with licensed financial institutions; � Negotiable Instruments of Deposits and Bankers Acceptances that are Shariah-compliant; � Corporate Sukuk traded in an Eligible Market which carry at least an “BBB3” or “P3” rating by RAM and its MARC equivalent; � Other obligations issued or guaranteed by the Malaysian Government, Bank Negara Malaysia, State Governments and

Government-related agencies such as Cagamas and Khazanah that are Shariah-compliant; � All types of Shariah-compliant collective investment schemes (listed and unlisted) which complement the objective and

enhance the performance of the Fund; and � Any other form of investments as may be agreed upon by the Manager and the Trustee or as approved by the SC from time to

time that are in line with the Fund’s objective provided always that the investments are Shariah-compliant/permissible.


73

3.4 CIMB Islamic Deposit Fund The following types of investments, including but not limited to: � Deposit placements with financial institutions; and � Any other form of investments as may be permitted by the SC from time to time that is in line with the Fund’s objectives.


SECTION 4: REGIONAL & GLOBAL FUNDS 4.1 CIMB Islamic Asia Pacific Equity Fund The following types of investments, including but not limited to: � Equities and debentures traded in or under the rules of an Eligible Market; � Warrants that carry the right in respect of a security traded in or under the rules of an Eligible Market; � Unlisted securities including securities not listed or quoted on a stock exchange but have been approved by the relevant




4.2 CIMB Islamic Greater China Equity Fund The following types of investments, including but not limited to: � Equities and debentures traded in or under the rules of an Eligible Market; � Warrants that carry the right in respect of a security traded in or under the rules of an Eligible Market; � Unlisted securities including securities not listed or quoted on a stock exchange but have been approved by the relevant

regulatory authority for such listing or quotation and are offered directly to the fund by the issuer; � Deposits and money market instruments; � Derivative instruments, including but not limited to options, futures contracts, forward contracts and swaps; � All types of collective investment schemes; � Securities listed or traded on foreign markets where the regulatory authority is a member of the International Organization of

Securities Commission (“IOSCO”); and � Any other form of investments as may be agreed upon by the Manager and the Trustee or as permitted by the SC from time to

time that is in line with the Fund’s objectives.


4.3 CIMB Islamic Global Emerging Markets Equity Fund The following types of investments, including but not limited to:

� Securities of companies listed on Bursa Malaysia; � Warrants that carry the right in respect of a security traded in or under the rules of an Eligible Market; � Unlisted securities and may include securities not listed or quoted on a stock exchange but have been approved by the

relevant regulatory authority for such listing or quotation and are offered directly to the fund by the issuer; � Deposits and money market instruments; � Derivative instruments, including but not limited to options, futures contracts, forward contracts and swaps (for efficient

portfolio management); � All types of collective investment schemes including exchange-traded funds (both local and foreign); � Structured products; � American Depositary Receipts ("ADRs") and Global Depositary Receipts (“GDR”) of Shariah-compliant companies that

conform with Shariah principles; � Securities listed or traded on foreign markets where the regulatory authority is a member of the International Organization of

Securities Commissions (“IOSCO”), and � Any other form of investments as may be permitted by the SC from time to time that is in line with the Fund’s objectives

provided always that the investments are Shariah-compliant/permissible.


74

4.4 CIMB Islamic Global Equity Fund The following types of investments, including but not limited to: � Equities and debentures traded in or under the rules of an Eligible Market; � Warrants that carry the right in respect of a security traded in or under the rules of an Eligible Market; � Unlisted securities including securities not listed or quoted on a stock exchange but have been approved by the relevant




4.5 CIMB Islamic Global Commodities Equity Fund

The following types of investments, including but not limited to:

� Equities and debentures traded in or under the rules of an Eligible Market; � Warrants that carry the right in respect of a security traded in or under the rules of an Eligible Market; � Unlisted securities including securities not listed or quoted on a stock exchange but have been approved by the relevant

regulatory authority for such listing or quotation and are offered directly to the fund by the issuer; � Deposits and money market instruments; � Derivative instruments, including but not limited to options, futures contracts, forward contracts and swaps; � All types of collective investment schemes; � Structured products; � Securities listed or traded on foreign markets where the regulatory authority is a member of the International Organization of



4.6 CIMB Islamic Kausar Lifecycle Funds (ILF2017, ILF2022 & ILF2027) The following types of investments, including but not limited to: � Equities and debentures traded in or under the rules of an Eligible Market; � Warrants that carry the right in respect of a security traded in or under the rules of an Eligible Market; � Unlisted securities including securities not listed or quoted on a stock exchange but have been approved by the relevant




The formulation of the investment policies and strategies of the Funds are based on the objectives of the Funds after taking into consideration the regulatory requirements outlined in the SC Guidelines (with such exemptions/variations (if any) as approved by the SC) and with the approval of the Shariah Advisers where applicable.

75

Investment restrictions and limits CIMB Islamic DALI Equity Growth Fund, CIMB Islamic DALI Equity Fund, CIMB Islamic DALI Equity Theme Fund, CIMB Islamic Equity Fund, CIMB Islamic Equity Aggressive Fund, CIMB Islamic Small Cap Fund, CIMB Islamic Balanced Fund, CIMB Islamic Balanced Growth Fund, CIMB Islamic Enhanced Sukuk Fund, CIMB Islamic Sukuk Fund, CIMB Islamic Asia Pacific Equity Fund, CIMB Islamic Greater China Equity Fund, CIMB Islamic Global Emerging Markets Equity Fund, CIMB Islamic Global Equity Fund, CIMB Islamic Global Commodities Equity Fund and CIMB Islamic Kausar Lifecycle Funds are subject to the following investment restrictions/limits: Exposure Limit � the value of the Fund’s investment in unlisted securities must not exceed 10% of the Fund’s NAV; Investment Spread Limits � the value of the Fund’s investment in ordinary Shariah-compliant shares issued by any single issuer must not exceed 10% of

the Fund’s NAV; � the value of the Fund’s investments in transferable Shariah-compliant securities and Islamic money market instruments issued

by any single issuer must not exceed 15% of the Fund’s NAV Note 1; � the value of the Fund’s placement in Shariah-compliant deposits with any single institution must not exceed 20% of the Fund’s

NAV; � the Fund’s exposure from Shariah-compliant derivatives positions should not exceed the Fund’s NAV. Further,

o the exposure to the underlying assets must not exceed the investment spread limits stipulated in the SC Guidelines; and o the value of the Fund’s OTC Shariah-compliant derivative transaction with any single counter-party must not exceed 10% of

the Fund’s NAV; � the value of the Fund’s investment in Shariah-compliant structured products issued by a single counter-party must not exceed

15% of the Fund’s NAV; � the aggregate value of the Fund’s investments in transferable Shariah-compliant securities, Islamic money market instruments,

Shariah-compliant deposits, OTC Shariah-compliant derivatives and Shariah-compliant 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 Note 1;

� the value of the Fund’s investment in units/shares of any Shariah-compliant collective investment scheme must not exceed 20% of the Fund’s NAV;

� the value of the Fund’s investment in transferable Shariah-compliant securities and Islamic money market instruments issued by any group of companies must not exceed 20% of the Fund’s NAV Note 1;

Investment Concentration Limits Note 2

� the Fund’s investments in transferable Shariah-compliant securities (other than Sukuk) must not exceed 10% of the securities issued by any single issuer;

� the Fund’s investments in Sukuk must not exceed 20% of the Sukuk issued by any single issuer; � the Fund’s investments in Islamic money market instruments must not exceed 10% of the instruments issued by any single

issuer. This limit does not apply to Islamic money market instruments that do not have a pre-determined issue size; � the Fund’s investments in Shariah-compliant collective investment schemes must not exceed 25% of the units/shares in any

one Shariah-compliant collective investment scheme.

Note 1: Not applicable for CIMB Islamic Enhanced Sukuk Fund and CIMB Islamic Sukuk Fund. Instead, the following apply:

� the value of the Fund’s investments in Sukuk issued by any single issuer must not exceed 20% of the Fund’s NAV. This single issuer limit may be increased to 30% if the Sukuk are rated by any domestic or global rating agency to be of the best quality and offer highest safety for timely payment of profit and principal;

� the value of the Fund’s investments in Sukuk issued by any group of companies must not exceed 30% of the Fund’s NAV. Where the single issuer limit is increased to 30%, the aggregate value of a fund’s investment must not exceed 30%.

Note 2: For CIMB Islamic Kausar Lifecycle Funds, the Investment Concentration limits will apply at the level of the umbrella fund. CIMB Islamic Money Market Fund and CIMB Islamic Deposit Fund are subject to the following investment restrictions/limits: Exposure limits � The value of the Fund’s investments in permitted investments must not be less than 90% of the Fund’s NAV; � The value of the Fund’s investments 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; � The value of the Fund’s investments 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 � The value of the Fund’s investments in Sukuk and Islamic money market instruments issued by any single issuer must not

exceed 20% of the Fund’s NAV. This single issuer limit may be increased to 30% if the Sukuk are rated by any domestic or global rating agency to be of the best quality and offer highest safety for timely payment of profit and principal;

� The value of the Fund’s placement in Shariah-compliant deposits with any single financial institution must not exceed 20% of the Fund’s NAV;

� The value of the Fund’s investments in Sukuk and Islamic money market instruments issued by any group of companies must not exceed 30% of the Fund’s NAV;

� Where applicable, the core requirements for non-specialised funds shall apply for any other type of investments. Investment Concentration limits � A Fund’s investments in Sukuk must not exceed 20% of the securities issued by any single issuer; � A Fund’s investments in Islamic money market instruments must not exceed 20% of the instruments issued by any single

issuer; and

76

� A Fund’s investments in Shariah-compliant collective investment schemes must not exceed 25% of the units/shares in any Shariah-compliant collective investment scheme.

In respect of any restrictions and limits stipulated by the SC Guidelines, there is an allowance of 5% where such restrictions and limits are breached through appreciation or depreciation of the NAV of the Fund (whether as a result of an appreciation or depreciation in value of the Fund’s investments, or as a result of repurchase of units or payment made out of the Fund). If the Fund ceases to comply with the above limitations on investments, the Manager or its delegates should not make any further acquisitions to which the relevant limit is breached and must remedy the non-compliance as soon as practicable (maximum three (3) months from the date of the breach). Minimum requirement for Shariah-compliant liquid assets Shariah-compliant liquid assets include cash, Shariah-compliant deposits with financial institutions, Islamic money market instruments and Sukuk with a remaining maturity of less than one (1) year. CIMB Islamic DALI Equity Growth Fund, CIMB Islamic DALI Equity Fund, CIMB Islamic DALI Equity Theme Fund, CIMB Islamic Equity Fund, CIMB Islamic Equity Aggressive Fund, CIMB Islamic Small Cap Fund, CIMB Islamic Balanced Fund, CIMB Islamic Balanced Growth Fund, CIMB Islamic Enhanced Sukuk Fund, CIMB Islamic Sukuk Fund, CIMB Islamic Asia Pacific Equity Fund, CIMB Islamic Greater China Equity Fund, CIMB Islamic Global Emerging Markets Equity Fund and CIMB Islamic Global Commodities Equity Fund will hold a minimum of 2% of its Net Asset Value (or such other amount agreed by both the Manager and the Trustee from time to time) in Shariah-compliant liquid assets. CIMB Islamic Global Equity Fund will hold a minimum of 0.5% of its Net Asset Value (or such other amount agreed by both the Manager and the Trustee from time to time) in Shariah-compliant liquid assets. CIMB Islamic Kausar Lifecycle Funds and CIMB Islamic Deposit Fund, may hold up to 5% of its Net Asset Value (or such other amount agreed by both the Manager and the Trustee from time to time) in Shariah-compliant liquid assets.

77

Valuation of authorized investments Valuation of the Funds will be carried out by the Manager in a fair manner in accordance with applicable law and guidelines. The valuation bases for the authorised investments of the Funds are as below: � Listed Shariah-compliant securities

The value of any authorised investments, which are quoted on an approved exchange, shall be calculated by reference to the last transacted price on that approved exchange. If there is no such transacted price, the value shall be determined by reference to the mean of bid and offer prices at the close of trading. Suspended Shariah-compliant securities will be valued at their last done price unless there is conclusive evidence to show that the value has gone below the suspended price or where the quotation of the securities has been suspended for a period exceeding fourteen (14) days or such shorter period as determined by the trustee, then the securities should be value 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.

� Sukuk and unlisted Shariah-compliant securities The value of unlisted Shariah-compliant securities shall be determined every fortnightly on the basis of 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, and adequately disclosed in this section. The value of any unlisted RM-denominated Sukuk shall be calculated on a daily basis using prices quoted by a bond pricing agency (“BPA”) registered with the SC. Where such prices are not available or where the Manager is of the view that the price quoted by the BPA for a specific Sukuk differs from the market price by more than 20 basis points, the Manager may use the market price by reference to the last available quote provided such quote was obtained within the previous thirty (30) days and the Manager records its basis for using a non-BPA price, obtained necessary internal approvals to use the non-BPA price and keeps an audit trail of all decisions and basis for adopting the market yield. The valuation of Shariah-compliant securities not listed or quoted on a stock exchange but have been approved by the relevant regulatory authority for such listing or quotation and are offered directly to the Fund by the issuer shall be valued at the issue price of such Shariah-compliant securities. For unlisted Shariah-compliant derivative instruments, the value will be determined by the financial institution that issued the instrument.

� Shariah-compliant collective investment schemes The value of any investment in Shariah-compliant collective investment schemes which are quoted on an approved exchange shall be calculated in the same manner as other listed Shariah-compliant securities described above. When investing in unlisted Shariah-compliant collective investment schemes, the value shall be determined by reference to the last published repurchase/redemption price for that Shariah-compliant collective investment scheme.

� Shariah-compliant deposits/Islamic money market instruments The value of any Shariah-compliant deposits placed with financial institutions and/or investments in Islamic money market instruments such as Islamic bankers acceptances and Islamic repurchase agreements shall be determined each day by reference to the nominal value of such authorised investments and the accrued income thereon for the relevant period.

If the quotations referred to above are not available or if the value of the authorised investments determined in the manner described above, in the opinion of the Manager, does not represent a fair value of the authorised investments, then the value shall be any reasonable value as may be determined by the Manager. This valuation method has been verified by the auditors and approved by the Trustee. Where the value of an asset of the Fund is denominated in a foreign currency, if any, the assets are translated on a daily basis to Ringgit Malaysia using the bid foreign exchange rate quoted by either Reuters or Bloomberg at United Kingdom 4:00 p.m. the same day, as per the Investment Management Standard (FIMM/IMS(I&SP)-004 (2nd Edition)) issued by the Federation of Investment Managers Malaysia, which may be amended/updated from time to time.

Borrowings / Financing Unless approved/allowed by the SC and in compliance with Shariah requirements, the Funds may not borrow cash or obtain cash financing or other assets in connection with its activities. However, the Funds may borrow cash or obtain financing for the purpose of meeting withdrawal requests for units and for short-term bridging requirements in accordance with the SC Guidelines provided always that all the financing for Shariah-compliant funds complied with the Shariah requirements.

Securities lending Subject to Shariah Adviser’s approval, the Funds may participate in the lending of securities within the meaning of the Guidelines on Securities Borrowing and Lending issued by the SC (as may be amended and/or updated from time to time) when the Manager finds it appropriate to do so with a view of generating additional income for the Funds with an acceptable degree of risk. The lending of securities is permitted under the Deeds and must comply with the above mentioned as well as with the relevant rules and directives issued by Bursa Malaysia, Bursa Malaysia Depository Sdn Bhd and Bursa Malaysia Securities Clearing Sdn Bhd.

78

Part D

Shariah investment guidelines The Shariah investment guidelines below are applicable to CIMB Islamic DALI Equity Growth Fund, CIMB Islamic DALI Equity Fund, CIMB Islamic DALI Equity Theme Fund, CIMB Islamic Equity Fund, CIMB Islamic Equity Aggressive Fund, CIMB Islamic Small Cap Fund, CIMB Islamic Balanced Fund, CIMB Islamic Balanced Growth Fund, CIMB Islamic Enhanced Sukuk Fund, CIMB Islamic Sukuk Fund, CIMB Islamic Asia Pacific Equity Fund, CIMB Islamic Greater China Equity Fund, CIMB Islamic Global Emerging Markets Equity Fund, CIMB Islamic Global Equity Fund, CIMB Islamic Global Commodities Equity Fund and CIMB Islamic Kausar Lifecycle Funds. At all times, the Funds shall invest in activities and instruments that are allowed under Shariah principles and shall not invest in activities and instruments that are prohibited under Shariah principles based on Shariah Adviser’s established parameters. Screening Process The Shariah investment guidelines have been prepared by the Shariah Adviser to serve as guiding principles to be observed by the Manager or its fund management delegate in the investment activities of the following Funds: 1. CIMB Islamic DALI Equity Theme Fund, CIMB Islamic Equity Aggressive Fund, CIMB Islamic Balanced Growth Fund,

CIMB Islamic Small Cap Fund and CIMB Islamic Enhanced Sukuk Fund shall invest in securities listed under the List of Shariah-compliant Securities by the Shariah Advisory Council (“SAC”) of the SC.

2. CIMB Islamic Asia Pacific Equity Fund, CIMB Islamic Kausar Lifecycle Funds, CIMB Islamic DALI Equity Fund, CIMB

Islamic Balanced Fund, CIMB Islamic Equity Fund, CIMB Islamic Global Emerging Markets Equity Fund, CIMB Islamic Greater China Equity Fund, CIMB Islamic Global Commodities Equity Fund, CIMB Islamic Global Equity Fund and CIMB lslamic DALI Equity Growth Fund shall invest in securities which are listed under the List of Shariah-compliant Securities by the SAC of the SC and/or Dow Jones Islamic Market IndexesSM

3. CIMB Islamic Sukuk Fund and CIMB Islamic Enhanced Sukuk Fund shall invest in domestic and foreign Sukuk. The

domestic Sukuk must be approved by the SAC of the SC. For foreign Sukuk, it must be approved by the Shariah Adviser upon review of the Sukuk’s information memorandum or prospectus and/or relevant documents of the said Sukuk, e.g. Shariah pronouncement/approval of the said Sukuk.

The same review is also applicable for other Funds which invest in Sukuk. 4. Any securities which are not listed under the List of Shariah-compliant Securities issued by the SAC of the SC and/or Dow

Jones Islamic Market IndexesSM in reference to items number (1) and (2) respectively shall follow the following guidelines:

4.1 Investment in companies with the following core activities and instruments are prohibited by the Fund. (a) Investments in companies which carry out or are involved in any of the following prohibited activities:

(i) activities connected to, but not limited to, manufacturing, selling, distributing and packaging of the following: � alcohol; � tobacco; � pork; � music; and � pornographic productions;

(ii) restaurants and hotels/motels except those not selling alcohol and/or non-halal food; (iii) operators of gambling casinos and manufacturers of gambling machines; (iv) operators of movie theatres and cable TV companies; (v) financial services (conventional banks, brokerage firms and investment funds that invest in companies that

engage in the restricted activities, insurance companies, etc); and (vi) other activities deemed non-permissible according to Shariah principles.

(b) Investment in a company whose total debt divided by trailing 24-month average market capitalisation is equal to or

more than 30%, where “total debt” equals short-term debt plus current portion of long-term debt plus long-term debt.

(c) Investment in a company where the sum of cash and interest-bearing securities divided by trailing 24-month average market capitalisation is equal to or more than 30%.

(d) Investment in a company where accounts receivables divided by total assets are equal to or more than 45%, where

“account receivables” means current receivables plus longer-term receivables.

4.2 Companies with permissible and non-permissible activities: For investment in companies with mix contributions from permissible and non-permissible activities, the following benchmarks will be used to determine the tolerable level of mixed contributions from permissible and non-permissible activities towards turnover and profit before tax of a company. If the contributions from non-permissible activities exceed the benchmark, the company will be classified as non Shariah-compliant. The benchmarks are as follows:

(a) The 5-percent benchmark This benchmark is used to assess the level of mixed contributions from the activities that are clearly prohibited

such as riba (interest-based companies like conventional banks), gambling, liquor and pork.

79

(b) The 10-percent benchmark This benchmark is used to assess the level of mixed contributions from the activities that involve the element of

“umum balwa” which is a prohibited element affecting most people and difficult to avoid. An example of such a contribution is the interest income from fixed deposits in conventional banks. This benchmark is also used for tobacco-related activities.

(c) The 20-percent benchmark

This benchmark is used to assess the level of contribution from mixed rental payment from non Shariah-compliant activities such as rental payments from premises used in gambling, sale of liquor etc.

(d) The 25-percent benchmark This benchmark is used to assess the level of mixed contributions from the activities that are generally

permissible according to Shariah and have an element of maslahah to the public, but there are other elements that may affect the Shariah status of these activities. Among the activities that belong to this benchmark are hotel and resort operations, share trading, stock broking and others, as these activities may also involve other activities that are deemed non-permissible according to Shariah.

4.3 The Funds are also prohibited from investing in interest-bearing deposits and recognising any interest income.

The Shariah investment guidelines below are only applicable for the CIMB Islamic Money Market Fund. At all times, the Fund’s investments would be restricted to financial instruments that are allowed under Shariah principles and the Fund is prohibited from investing in financial instruments which do not comply with Shariah principles subject to the following: 1. Money market and fixed income instruments issued in Malaysia must be duly approved by the SAC of Bank Negara Malaysia

and/or the SAC of the SC. 2. Money market and fixed income instruments that are endorsed by other Shariah adviser / committee must be approved by the

Shariah Adviser upon review of the relevant documents, e.g. principal terms & conditions and Shariah pronouncement/approval.

The Fund is also prohibited from investing in interest-bearing deposits and recognising any interest income. The Shariah investment guidelines below are only applicable for the CIMB Islamic Deposit Fund. At all times, the Fund’s investment would be restricted to financial instruments that are allowed under Shariah principles and the Fund is prohibited from investing in financial instruments which do not comply with Shariah principles subject to the following: 1. Financial instruments issued by licensed Islamic financial institutions in Malaysia must be duly approved by the SAC of Bank

Negara Malaysia and/or the SAC of the SC. The Fund is also prohibited from investing in interest-bearing deposits and recognising any interest income. Rules on divestment of non Shariah-compliant securities In the event the following investment instances occur in the Funds, the rules below shall be executed by the Manager or its fund management delegate: 1. “Shariah-compliant securities” which are subsequently considered “non Shariah-compliant”. This refers to those securities which were earlier classified as Shariah-compliant securities but due to certain reasons, such as

changes in the companies’ operations, are subsequently considered non Shariah-compliant. In this regard, if on the date the securities turned non Shariah-compliant, the value of the securities held exceeds the original investment cost; Funds that hold such non Shariah-compliant securities must liquidate them. Any capital gains arising from the disposal of the non Shariah-compliant securities can be kept by the Funds. However, any excess capital gains derived from the disposal after the announcement day at a market price that is higher than the closing price on the announcement day should be channelled to charitable bodies approved by the Shariah Adviser.

On the other hand, Funds are allowed to hold their investment in the non Shariah-compliant securities if the market price of the said securities is below the original investment costs. It is also permissible for the Funds 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 non Shariah-compliant securities held equal the original investment cost. At this stage, they are advised to dispose of their holding.

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

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

rights issues, bonus issues, special issues and warrants [excluding securities whose nature is non Shariah-compliant i.e. irredeemable convertible unsecured loan stock (“ICULS”)]; and

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

by the Funds,

on condition that they expedite the disposal of the non Shariah-compliant securities.

80

2. Non Shariah-compliant securities.

If the Manager or its fund management delegate mistakenly invests in non Shariah-compliant securities, the Manager or its fund management delegate needs to dispose of any non Shariah-compliant securities, within a month of becoming aware of the status of the securities. Any gain made in the form of capital gain or dividend received during or after the disposal of the securities has to be channelled to charitable bodies, approved by the Shariah Adviser. The Fund has a right to retain only the original investment cost, which may include brokerage fee and other transaction costs.

Cleansing Process 1. Under the Shariah principles, any income or distribution received by the Fund from investments in its portfolio which relates to

income from non Shariah-compliant investments as set out above are considered impure income. This impure income is subject to an income purification process as determined by the Shariah Adviser, from time to time and without limitation, where the impure income will be distributed to charitable bodies approved by the Shariah Adviser.

2. In cases where the income is generated from investment in companies with mix contributions of permissible and non-

permissible activities under number 4.2 of the Screening Process, the securities are deemed Shariah-compliant and cleansing of income in proportion to non-permissible activities of the securities is not required.

Periodic Review The Shariah Adviser will review the Fund twice a year to ensure the Fund’s operating procedures and investments comply with the Shariah principles. Upon completion of each review, the Shariah Adviser will deliver its opinion on the Shariah compliancy.

The Funds’ compliance to the Shariah principles The Shariah Adviser is of the view that, given the prevailing circumstances, the Shariah-compliant Funds and their respective investments as disclosed and presented are acceptable and within the principles of Shariah, subject to proper execution of the legal documents and other transactions related to the Funds.

The investment portfolio of the Funds comprises securities which have been classified as Shariah-compliant by the SAC of the SC. For securities not certified by the SAC of the SC, the status of the securities has been determined in accordance

with the ruling issued by the Shariah Adviser.

81

Funds’ Performance

Average Total Returns The following table reflects the average total returns of the Funds in the preceding financial year/period:

1-Year 3-Year 5-Year 10-Year

Since Inception

As at 31 May 2010, in %

CIMB Islamic DALI Equity Growth Fund 20.98 3.91 12.20 4.75 10.42

CIMB Islamic DALI Equity Fund 12.34 0.27 11.33 - 10.11

CIMB Islamic Small Cap Fund 28.02 5.22 5.86 - 3.83

As at 31 July 2010, in %


7.81 - - - 8.68

CIMB Islamic Greater China Equity Fund (10.87) - - - (1.45)

As at 31 August 2010, in %

CIMB Islamic Sukuk Fund 4.15 3.41 3.49 - 3.27

CIMB Islamic Kausar Lifecycle 2017 5.01 1.54 - - 1.52

CIMB Islamic Kausar Lifecycle 2022 2.72 (0.91) - - (0.81)

CIMB Islamic Kausar Lifecycle 2027 3.31 (0.96) - - 0.89

As at 30 September 2010, in %

CIMB Islamic Balanced Fund 7.16 2.23 7.91 - 6.97


- - - - 0.59

As at 31 October 2010, in %

CIMB Islamic Equity Fund 13.68 1.17 13.14 - 11.43

As at 30 November 2010, in %

CIMB Islamic DALI Equity Theme Fund 18.51 - - - 5.03

CIMB Islamic Money Market Fund 2.43 - - - 2.54

As at 31 December 2010, in %

CIMB Islamic Balanced Growth Fund 15.57 0.79 9.43 - 7.49

CIMB Islamic Equity Aggressive Fund 22.29 0.41 13.05 7.70 1.75

As at 31 January 2011, in %

CIMB Islamic Deposit Fund 1.80 - - - 1.62

As at 31 March 2011, in %

CIMB Islamic Enhanced Sukuk Fund 10.31 6.63 6.74 - 5.96

As at 30 April 2011, in %

CIMB Islamic Asia Pacific Equity Fund 3.15 4.23 - - 3.94

CIMB Islamic Global Equity Fund 9.45 (3.70) - - (2.37)

All performance figures have been verified by Mercer (Malaysia) Sdn. Bhd. (35090-H) except for ISF and DALI3, where the source is from Lipper.

82

Annual Total Returns The following table reflects the annual total returns of the Funds for each of the last ten (10) financial years:

1-

Year

2-

Year

3-

Year

4-

Year

5-

Year

6-

Year

7-

Year

8-

Year

9-

Year

10-

Year

Since Incept

ion

As at 31 May 2010, in %


20.98 3.79 12.18 67.37 77.79 77.46 95.67 90.79 121.65 59.00 231.01


12.34 (8.23) 0.80 56.81 71.04 76.08 97.60 - - - 97.89


28.02 0.76 16.50 51.61 32.97 16.55 29.23 - - - 30.50



7.81 34.44 - - - - - - - - 23.42


(10.87) - - - - - - - - - (1.60)



4.15 11.43 10.58 16.80 18.70 - - - - - 20.92


5.01 13.24 4.69 - - - - - - - 12.26


2.72 5.73 (2.70) - - - - - - - (2.52)


3.31 7.14 (2.86) - - - - - - - (2.76)



7.16 32.55 6.84 47.23 46.31 48.87 50.44 73.24 86.20 - 90.56


- - - - - - - - - - 0.40



13.68 65.25 3.56 67.11 85.39 92.09 - - - - 92.70



18.51 63.92 - - - - - - - - 14.48


2.43 5.10 - - - - - - - - 7.02



15.57 53.52 2.39 35.98 56.95 45.02 60.00 - - - 73.21


22.29 94.05 1.24 52.29 84.66 56.04 72.04 105.86 103.35 109.97 30.91



1.80 - - - - - - - - - 2.28



10.31 27.01 21.24 22.65 38.55 42.48 - - - - 42.34



3.15 40.84 13.24 12.81 - - - - - - 25.22


9.45 30.78 (10.69) - - - - - - - (7.62)

All performance figures have been verified by Mercer (Malaysia) Sdn. Bhd (35090-H) except for ISF and DALI3, where the source is from Lipper.

83

Basis of calculation and assumptions made in calculating the returns NAVt – NAVt-1

Percentage growth = -------------------------------

NAVt

Number of Periods per Year

Total Number of Periods

Performance annualized = (1 + Percentage growth) - 1

Funds’ performance against benchmark This table describes the performance of the Funds and comparison with the selected benchmark for the last financial year end.

As at 31 May 2010, in %


1-Year 3-Year 5-Year 10-Year Since Inception

Fund 20.98 12.18 77.79 - 231.01

Benchmark 16.35 (7.65) 46.45 - 99.01 For the financial year ended 31 May 2010, the Fund achieved a return of 20.98% over the last 12 months, outperforming its benchmark by 4.63%. The Fund has outperformed as well over 3-year and 5-year periods.

* Effective 1 November 2007, the Fund has changed its benchmark from Kuala Lumpur Shariah Index (“KLSI”) to FTSE Bursa Malaysia Emas Shariah Index. This is because the previous Index, KLSI, has been phased out in November 2007.



Fund 12.34 0.80 71.04 - 97.89

Benchmark 13.76 (10.89) 41.30 - 82.69 For the financial year ended 31 May 2010, the Fund returned 12.34% over the 1-year period to 31 May 2010, underperforming the benchmark by 1.42%. However, the Fund has significantly outperformed its benchmarks over 3-year and 5-year periods.

* Effective 1 July 2010, the benchmark for this Fund has been replaced with the following: 70% FTSE Bursa Malaysia EMAS Shariah Index + 30% Dow Jones Islamic Asia Pacific ex Japan. This is to reflect the change in the foreign exposure.



Fund 28.02 16.50 32.97 - 30.50

Benchmark 20.76 (10.50) 44.13 - 86.04 For the financial year ended 31 May 2010, the Fund appreciated 28.02% as compared with the benchmark’s rise of 20.76%. Therefore, the Fund outperformed the benchmark by 7.26%. Equity exposure was kept high and this allowed the Fund to capitalize on the strong market rebound during the period under review. The outperformance was also due to good stock selection. The Fund had significant positions in gloves, healthcare and construction stocks which were re-rated by the market as the regional economies rebounded in end 2009/early 2010.

Over the last 5 years, the Fund has risen 33% with an average total return of 15.3%. The Fund has therefore met its objective of consistent capital growth over the medium to long-term.

* Effective 1 November 2007, the benchmark for this Fund has been replaced with the following: FTSE Bursa Malaysia Small Cap Index. This is to be consistent with the objective of the Fund.




Fund 7.43 - - - 11.58

Benchmark 4.69 - - - (6.55) For the financial year ended 31 July 2010, the Fund gained 7.43%, outperforming the benchmark by 2.74%. Since inception, the Fund has outperformed the benchmark by 18.13%.



Fund (10.87) - - - (1.60)

Benchmark (2.65) - - - 8.68 For the financial year ended 31 July 2010, the Fund had a negative return of -10.87% compared to its benchmark, which also had a negative return of -2.65%. Hence, there was an underperformance of -8.22%.

84




Fund 4.15 10.58 18.70 - 20.92

Benchmark 5.25 13.70 23.30 - 33.43 For the financial year ended 31 August 2010, the Fund’s performance for the period under review was 4.15% as against the benchmark’s return of 5.25%.

* Effective 1 July 2010, the benchmark for this Fund was replaced with Quantshop GII Medium Index. This is to reflect a more accurate comparison as this is a Shariah-compliant Fund.



Fund 5.01 - - - 4.86

Benchmark 2.15 - - - (8.44) For the financial year ended 31 August 2010, the Fund reported a total return of 5.01% outperforming the benchmark by 2.86%.



Fund 2.72 - - - (2.52)





Fund 3.31 - - - (2.76)





Fund 7.16 6.84 46.31 - 90.56

Benchmark 6.69 0.05 38.11 - 74.69 For the financial year ended 30 September 2010, the Fund outperformed 0.47%, returning 7.16% as compared with the benchmark return of 6.69%. Both fixed income and local equity contributed positively to the outperformance.

* Effective 1 June 2007, the benchmark for this Fund has been replaced with the following: 30% FTSE Bursa Malaysia EMAS Shariah Index + 30% Dow Jones Islamic Asia Pacific ex Japan + 40% CIMB Islamic 1-month General Investment Account (GIA). This is because the previous Index, KLSI, has been phased out in November 2007.



Fund - - - - 0.40

Benchmark - - - - (3.92) For the financial year ended 30 September 2010, since inception, the Fund gained 0.40% whilst the benchmark declined by 3.92%. This has resulted in an outperformance of 4.32%.




Fund 13.68 3.56 - - 92.70

Benchmark 14.84 (8.89) - - 53.94 For the financial year ended 31 October 2010, the Fund gained a positive return of 13.68% compared to its benchmark, which also had a positive return of 14.84%. Hence, there was an underperformance of 1.16%.

* Effective 1 June 2007, the benchmark for this Fund has been replaced with the following: 50% FTSE Bursa Malaysia EMAS Shariah Index + 50% Dow Jones Islamic Asia Pacific Ex Japan. This is because the previous Index, KLSI, has been phased out in November 2007.

85




Fund 18.51 - - - 14.48

Benchmark 16.68 - - - (1.52) For the financial year ended 30 November 2010, the Fund gained 18.51%, outperfoming its benchmark by 1.83%. Since inception, the Fund outperformed its benchmark by 16%.



Fund 2.43 - - - 7.02

Benchmark 2.32 - - - 6.65 For the financial year ended 30 November 2010, the Fund gained 2.43%, outperforming its benchmark by 0.11%. Since inception, the Fund achieved a total return of 7.02%.




Fund 15.57 2.39 56.95 - 73.21

Benchmark 11.72 1.37 52.50 - 89.35 For the financial year ended 31 December 2010, the Fund recorded a return of 15.57% for the period under review, outperforming the benchmark by 3.85%. Over the longer period, the Fund outperformed the benchmark by 1.02% over 3 years and 4.45% over 5 years.



Fund 22.29 1.24 84.66 - 129.74

Benchmark 18.20 (4.51) 79.95 - 175.08 For the financial year ended 31 December 2010, the Fund recorded 22.29% in capital gains for the period under review, outperforming the benchmark by 4.09%. On the longer term basis of 3-years, the Fund outperformed its benchmark by 5.75%.




Fund 1.80 - - - 2.15

Benchmark 2.54 - - - 3.21 For the financial year ended 31 January 2011, the Fund gave a total 1 year return of 1.80%. Since inception, the Fund achieved a return of 2.15%.




Fund 10.31 21.24 38.55 - 42.34

Benchmark 4.49 9.40 21.92 - 24.90 For the financial year ended 31 March 2011, the Fund achieved a positive return of 10.31% as compared to its benchmark of 4.49%. For fixed income, the outperformance was mainly due to the better performance of some of the underlying corporate bonds in the Fund.




Fund 3.15 13.24 - - 25.22

Benchmark 9.90 16.92 - - 17.00 For the financial year ended 30 April 2011, the Fund gained a positive return of 3.15% compared to its benchmark, which also had a positive return of 9.90%. Hence, there was an underperformance of 6.75%.

* Effective 1 February 2009, the benchmark for this Fund has been replaced with the following: Dow Jones Islamic Market Asia/pacific ex Japan Index. This is to reflect the revised investment universe of the Fund.

86



Fund 9.45 (10.69) - - (7.62)

Benchmark 9.76 (3.00) - - 1.36 For the financial year ended 30 April 2011, the Fund recorded a positive return of 9.45% as compared ot its benchmark of 9.76%. Hence, there was an underperformance of 0.31%.

All performance figures have been verified by Mercer (Malaysia) Sdn. Bhd. (35090-H) except for ISF and DALI3, where the source is from Lipper.

87

Distributions

CIMB Islamic DALI Equity Growth Fund (FYE: 31 May) 2010 2009 2008

Distribution on 18 March 2010 (2009: 6 June 2008)

Net distribution per unit (sen) 3.92 6.11 5.69

Gross distribution per unit (sen) 4.50 7.00 6.00

Distribution was in the form of cash or reinvested into additional units in the Fund at the NAV per unit on the distribution date.

CIMB Islamic DALI Equity Fund (FYE: 31 May) 2010 2009 2008

Distribution on 11 September 2008 (2008: 30 November 2007)



Distribution on 11 February 2009

Net distribution per unit (sen) - 6.92 -

Gross distribution per unit (sen) - 7.00 -

Distribution on 12 May 2010 (2009:

Net distribution per unit (sen) 4.94 9.91 -

Gross distribution per unit (sen) 5.00 10.00 -


CIMB Islamic Small Cap Fund (FYE: 31 May) 2010 2009 2008

No income distribution has been paid since inception.

CIMB Islamic Global Emerging Markets Equity Fund (FYE: 31 July) 2010 2009 2008

Given its investment objective, the Fund is not expected to pay any distribution.

CIMB Islamic Greater China Equity Fund (FYE: 31 July) 2010 2009 2008


CIMB Islamic Sukuk Fund (FYE: 31 August) 2010 2009 2008

Distribution per unit

Net distribution per unit (sen) - - 1.85

Gross distribution per unit (sen) - - 1.82


CIMB Islamic Kausar Lifecycle 2017 (FYE: 31 August) 2010 2009 2008

Regular distributions are not the focus of this fund. Distributions, if any, are at the discretion of the Manager.





CIMB Islamic Balanced Fund (FYE: 30 September) 2010 2009 2008

Distribution on 24 November 2009 and 12 May 2009




CIMB Islamic Global Commodities Equity Fund (FYE: 30 September ) 2010 2009 2008


CIMB Islamic Equity Fund (FYE: 31 October) 2010 2009 2008

Distribution on 9 January 2008

Net distribution per unit (sen) - 3.78 3.93

Gross distribution per unit (sen) - 4.00 4.00

Distribution on 4 September 2009

Net distribution per unit (sen) - 3.78 -

Gross distribution per unit (sen) - 4.00 -

88


CIMB Islamic DALI Equity Theme Fund (FYE: 30 November) 2010 2009 2008


CIMB Islamic Money Market Fund (FYE: 30 November) 2010 2009 2008

Distribution per unit

Net distribution per unit (sen) 1.69 1.31

Gross distribution per unit (sen) 1.69 1.31

Distribution on 31 December

Gross/net distribution per unit (sen) 0.17 0.20 -

Distribution on 30 January


Distribution on 28 February


Distribution on 31 March


Distribution on 30 April


Distribution on 31 May


Distribution on 30 June


Distribution on 31 July


Distribution on 31 August


Distribution on 30 September


Distribution on 31 October


Distribution on 30 November


Distribution was in the form of units based on the NAV per unit of the Fund on the distribution date, which will be automatically reinvested into the Fund.

CIMB Islamic Balanced Growth Fund (FYE: 31 December) 2010 2009 2008

Final distribution on 31 December




CIMB Islamic Equity Aggressive Fund (FYE: 31 December) 2010 2009 2008

Final distribution on 31 December

Net distribution per unit (sen) - - -

Gross distribution per unit (sen) - - -

Distribution (if any) was in the form of cash or reinvested into additional units in the Fund at the NAV per unit on the distribution date.

CIMB Islamic Deposit Fund (FYE: 31 January) 2011

Distribution on 31 October 2009

Gross/Net distribution per unit (sen) 1.48 - -

89

Distribution on 30 November 2009

Gross/Net distribution per unit (sen) 1.35 - -

Distribution on 31 December 2009

Gross/Net distribution per unit (sen) 1.39



Distirbution on 28 February 2010


Distribution on 31 March 2010


Distribution on 30 April 2010


Distribution on 31 May 2010


Distribution on 30 June 2010


Distribution on 31 July 2010


Distribution on 31 August 2010


Distribution on 30 September 2010


Distribution on 31 October 2010


Distribution on 30 November 2010


Distribution on 31 December 2010




CIMB Islamic Enhanced Sukuk Fund (FYE: 31 March) 2011 2010 2009

Distribution on 31 March




CIMB Islamic Asia Pacific Equity Fund (FYE: 30 April) 2011 2010 2009

Regular distributions are not the focus of this Fund. Distributions, if any, are at the discretion of the Manager.

CIMB Islamic Global Equity Fund (FYE: 30 April) 2011 2010 2009


Forms of payment of distribution: � by a cheque; or � reinvested as additional units into the relevant Fund at the NAV per unit of the relevant Fund on the distribution date. No

application fees are payable (the number of units is rounded down to the nearest two decimal places).

Portfolio Turnover Ratio (“PTR”) Portfolio turnover is a measure of the volume of trading undertaken by a fund in relation to the Fund’s size.

90

The formula for calculating portfolio turnover is as follows:

[total acquisitions of the fund for the year + total disposal for the year] / 2

average net asset value for the fund for the year calculated on a daily basis The PTR for the last three financial year-end are as follows:

Financial Year Ended 30 April 2010 30 April 2009 30 April 2008

CIMB Islamic Asia Pacific Equity FundNote 1 1.91 2.52 0.93

CIMB Islamic Global Equity FundNote 2 1.41 2.58 -

Financial Year Ended 31 May 2010 31 May 2009 31 May 2008

CIMB Islamic DALI Equity Growth Note 3 0.55 1.03 0.93

CIMB Islamic DALI Equity FundNote 4 1.52 2.12 1.44

CIMB Islamic Small Cap FundNote 5 2.58 0.99 1.11

Financial Year Ended 31 July 2010 31 July 2009 31 July 2008

CIMB Islamic Global Emerging Markets Equity FundNote 6

0.79 1.03 -

CIMB Islamic Greater China Equity Fund 4.30 - -

Financial Year Ended 31 August 2010 31 August 2009 31 August 2008

CIMB Islamic Sukuk FundNote 7 0.45 0.48 0.44

CIMB Islamic Kausar Lifecycle 2017 Note 8 0.12 0.21 0.64



Financial Year Ended 30 September 2010 30 September 2009 30 September 2008

CIMB Islamic Balanced FundNote 11 0.97 1.26 0.92

CIMB Islamic Global Commodities Equity Fund 0.90 - -

Financial Year Ended 31 October 2010 31 October 2009 31 October 2008

CIMB Islamic Equity FundNote 12 1.20 1.94 1.55

Financial Year Ended 30 November 2010 30 November 2009 30 November 2008

CIMB Islamic DALI Equity Theme Fund Note 13 1.01 0.90 0.92

CIMB Islamic Money Market Fund Note 14 1.22 0.69 1.63

Financial Year Ended 31 December 2010 31 December 2009 31 December 2008

CIMB Islamic Balanced Growth FundNote 15 1.15 0.68 0.92

CIMB Islamic Equity Aggressive FundNote 16 1.50 1.26 1.28

Financial Year Ended 31 January 2011 31 January 2010 31 January 2009

CIMB Islamic Deposit Fund Note 17 138.63 - -

Financial Year Ended 31 March 2011 31 March 2010 31 March 2009

CIMB Islamic Enhanced Sukuk FundNote 18 1.11 1.22 0.65

The latest audited figure as at 30 April 2011 for IAPEF and IGEF are not available. Notes: Note 1 - For AIPEF, the PTR decreased compared with the previous period as there was a large rebalancing undertaken last

year. Note 2 - For IGEF, the PTR has reduced to 1.41 times vs 2.58 times due to lesser transaction in foreign equity. Note 3 - For DALI, the PTR fell significantly from 1.03 the previous year to 0.55 in the financial year under review. The higher

turnover the previous year was incurred mainly from March 2009 to June 2009 when the Fund was re-positioned for the recovery in the market but once the Fund was re-positioned, transactions were reduced significantly. As a result, portfolio turnover fell.

Note 4 - For DALI2, the PTR fell from 2.12. times to 1.52 times in the financial year under review. The higher turnover the

previous year was incurred mainly from March 2009 to June 2009 when the Fund was re-positioned for the recovery in the market but once the Fund was re-positioned, transactions were reduced. As a result, the portfolio turnover fell.

Note 5 - For ISCF, the PTR was higher in 2010 as the market was volatile and therefore the equity exposure of the Fund was

changed to match the changing market conditions. Also there were some significant changes in the components of the benchmark FBMSC index during that period. At the same time, the PTR for the same period a year ago was low as the Fund made minimal trades when share prices dropped to depressed levels in the second half of 2008.

91

Note 6 - For IGEMEF, the PTR has reduced to 0.79 times vs 1.03 times. This low turnover has resulted in lesser transaction costs and greater tax-efficiency.

Note 7 - For ISF, the Fund’s PTR reduced to 0.45 times from 0.48 times last year due to lesser transactions for fixed income

during the period under review. Note 8 - For ILF2017, the lower PTR is a reflection of less need to rebalance the Fund. Note 9 - For ILF2022, the PTR dropped to 0.18 as there were no fundamental changes to rebalance the Fund. Note 10 - For ILF2027, the PTR remained relatively stable at 0.19 as there were no fundamental changes to rebalance the Fund. Note 11 - For IBF, the PTR was marginally lower at 0.97 times from 1.26 times the previous year due to slight decrease in

transactions for both fixed income and equity during the period under review. Note 12 - For IEF, the PTR was 1.20 times, incurred from re-positioning of the Fund from time to time to keep up with the pace of

the development and changing views on countries and sectors. Note 13 - For DALI3, the PTR increased marginally to 1.01 times from 0.90 times due to the buoyancy of stocks that saw profit

taking on those that traded up and rotation into stocks that were lagging behind. Note 14 - For IMMF, the PTR was higher for the period under review at 1.22 times (previous year was 0.69 times) as the credit

risk and yield was actively managed for the period. Note 15 - For IBGF, the PTR rose to 1.15 times from 0.68 times due to greater transactions for equity and fixed income in a

volatile market, as the Fund rotated from investments which had reached their fair value to those which were undervalued.

Note 16 - For IEAF, the PTR increased to 1.50 times from 1.26 times in the same period the previous year. This increase in

activities was due to profit taking on stocks that had performed well and switching into stocks that had lagged the market rally.

Note 17 - For IDF, the PTR was 138.68 times during the period under review. This is primarily due to lumpy fund creations as well

as reductions affecting the NAV base of the PTR ratio. Note 18 - For IESF, the lower PTR was because the Manager held on to equity in order to ride the market rally. Going forward,

the PTR would pick up as the Manager takes profit and switch into stocks that have lagged this rally.

92

Asset allocation The following tables describe the asset allocation of the Funds for three (3) most recent financial years: Financial Year Ended: 31 May

CIMB Islamic DALI Equity Growth Fund Note 1 2010 2009 2008

Shariah-compliant local equities 90.78% 82.93% 81.25%

Shariah-compliant liquid assets & others 9.22% 17.07% 18.75%

CIMB Islamic DALI Equity Fund Note 2 2010 2009 2008


Shariah-compliant foreign equities 49.51% 43.01% 26.40%


CIMB Islamic Small Cap Fund Note 3 2010 2009 2008



Financial Year Ended: 31 July

CIMB Islamic Global Emerging Markets Equity Fund Note 4 2010 2009 2008

Shariah-compliant local equities - 1.95% -

Shariah-compliant foreign equities 97.72% 97.61% -

Shariah-compliant liquid assets & others 2.28% 0.44% -

CIMB Islamic Greater China Equity Fund Note 5 2010 2009 2008

Shariah-compliant foreign equities 97.72% - -

Shariah-compliant liquid assets & others 2.28% - -

Financial Year Ended: 31 August

CIMB Islamic Sukuk Fund Note 6 2010 2009 2008

Shariah-compliant fixed income securities 81.78% 33.54% 95.45%


CIMB Islamic Kausar Lifecycle 2017 Note 7 2010 2009 2008

Shariah-compliant collective investment scheme 69.81% 67.43% 62.55%


Shariah-compliant REITs 4.59% 4.74% 3.37%










Financial Year Ended: 30 September

CIMB Islamic Balanced Fund Note 10 2010 2009 2008





CIMB Islamic Global Commodities Equity Fund 2010 2009 2008

Shariah-compliant foreign equities 95.38% - -


93

Financial Year Ended: 31 October

CIMB Islamic Equity Fund Note 11 2010 2009 2008




Financial Year Ended: 30 November

CIMB Islamic DALI Equity Theme Fund Note 12 2010 2009 2008



CIMB Islamic Money Market Fund Note 13 2010 2009 2008



Financial Year Ended: 31 December

CIMB Islamic Balanced Growth Fund Note 14 2010 2009 2008




CIMB Islamic Equity Aggressive Fund Note 15 2010 2009 2008



Financial Year Ended: 31 January

CIMB Islamic Deposit Fund Note 16 2011 2010 2009

Shariah-compliant fixed income securities 99.97% - -


Financial Year Ended: 31 March

CIMB Islamic Enchanced Sukuk Fund Note 17 2011 2010 2009




Financial Year Ended: 30 April

CIMB Islamic Asia Pacific Equity Fund Note 18 2011 2010 2009



CIMB Islamic Global Equity Fund 2011 2010 2009



Notes: Note 1 - For DALI, the allocation of the Fund in Shariah-compliant equities increased from 82.93% in May 2009 to above

90.73% in May 2010 and has since then been the low 90s to latch on the recovery of the market. Note 2 - For DALI2, there has been a significant increase in equity allocation between the two dates, both on the domestic and

regional portfolios, as weightings were increased across the board to latch onto the market recovery. Note 3 - For ISF, equity exposure was lowered to 82.55% as at 31 May 2010, from 95.30% a year ago. The equity exposure

was tactically lowered in view of the volatile markets following the sovereign debt crisis in Europe in April 2010. Note 4 - For IGEMEF, the Fund remains almost fully invested into the Shariah-compliant equities.

94

Note 5 - For IGCEF, focus will be on China stocks to capture the long-term growth story of China. The Fund will be fully invested in equities based on fundamental bottom-up stock-picks. Sector wise, currently, the Fund is overweighting in Consumer, IT and underweighting in Energy & telecoms.

Note 6 - For ISF, about 81.78% of the Fund was invested in fixed income securities. Liquidity is maintained in the Fund to take

advantage of any primary issues and to facilitate any redemption. Note 7 - For ILF2017, exposure to Sukuk increased to 24.11% to capture the strong rally in bonds both locally and regionally.

Equity holding also increased to 69.81% to reflect the relatively buoyant Asian bourses. As a result, cash holding dropped to 1.49% from 7.81% previously.

Note 8 - For ILF2022, creation pushed cash holding to 24.83% and explained for the sharp drop in investment in unit trust funds

to 67.50% from 94.43% previously. Note 9 - For ILF2027, the jump in cash holding to 15.42% from creation explained for the decline in exposure to collective

investment schemes to 79.75% from 90.76% previously. Note 10 - For IBF, the local equity portion of the Fund remained highly invested for most of the period under review in order for

the Fund to participate in the local market rally. The fixed income investment increased from 30% to 35.5% for the period under review with liquidity being maintained for potential primary issues.

Note 11 - For IEF, there was no significant change in portfolio structure at year-end in comparison to last year. The Fund was

more or less fully invested to take advantage of the market recovery. Note 12 - For DALI3, the equity holdings were held about 90% for most of the period and at the financial year-end, equity

holdings were at 91.38% given our optimistic outlook for the market. Note 13 - For IMMF, the Fund has generally maintained its asset allocation between cash and short-term Sukuk, 67.02% was

invested in unquoted Sukuk and the remaining 32.98% was invested in cash and other liquid assets. Note 14 - For IBGF, the fund exposure was maintained at between 90% to 95% to participate in the market rally. Note 15 - For IEAF, the Fund was 94.93% invested in equities as at the end of the period under review. Within the period, there

were movements to this weighting. The equity exposure was reduced by 2.42% from 97.35% previously. The Fund took profit in stocks that had performed well during the period and switched into stocks that lagged the market rally.

Note 16 - For IDF, the Fund is essentially a cash fund and all monies are invested in deposits placed with varioud financial

institutions. Note 17 - For IESF, the asset allocation for fixed income increased to 78.84% from 71.42% for the financial year under review.

The increase in the fixed income exposure is in tandem with the strategy to maintain fully invested with liquidity for primary issues.

Note 18 - For IAPEF, the change in asset allocation to 93.35% is minor and reflects a midway portfolio rebalancing at the end of

April.

Past performance of the Funds is not an indication of its future performance.

95

Historical Highlights of the Funds Financial statement of the Funds

CIMB Islamic Asia Pacific Equity Fund – FYE: 30 April

Income statement

2010 2009 2008

RM RM RM

Total Shariah-compliant investment income 12,759,889 (10,407,355) 11,302,966

Total expenses 1,250,511 941,423 1,417,312

Net (loss)/income before taxation 11,509,378 (11,348,778) 9,885,654

Net (loss)/income after taxation 10,949,941 (11,409,030) 9,742,105

Statement of assets and liabilities

2010 2009 2008

RM RM RM

Total Shariah-compliant investment 56,373,054 38,815,376 51,984,598

Total Shariah-compliant other assets 4,065,993 4,679,248 6,143,159

Total Shariah-compliant assets 60,439,047 43,494,624 58,127,757

Total liabilities 1,751,694 2,215,903 153,538

Net assets attributable to Unit holders 58,687,353 41,278,721 57,974,219

NAV per unit (RM) 0.5773 0.4226 0.5326

Note: The latest audited financial statements as at 30 April 2011 for the CIMB Islamic Asia Pacific Equity Fund are not yet available.

CIMB Islamic Global Equity Fund – FYE: 30 April

Income statement

2010 2009 RM RM

Total Shariah-compliant investment (loss)/income 3,402,174 (22,259,733)

Total expenses 1,322,218 2,173,967

Net (loss)/income before taxation 2,079,956 (24,433,700)

Net (loss)/income after taxation 1,803,723 (24,880,663)

Statement of assets and liabilities 2010 2009 RM RM

Total Shariah-compliant investment 48,021,642 62,238,103

Total Shariah-compliant other assets 2,302,059 804,007

Total Shariah-compliant assets 50,323,701 63,042,110

Total liabilities 2,575,485 290,796

Net assets attributable to Unit holders 47,748,216 62,751,314

NAV per unit (RM) 0.4219 0.3532

Note: The latest audited financial statements for the CIMB Islamic Global Equity Fund are not yet available.

CIMB Islamic DALI Equity Growth Fund – FYE: 31 May

Income statement

2010 2009 2008

RM RM RM


Total expenses 19,448,873 11,635,559 9,203,180

Net income/(loss) before taxation 63,149,939 (134,848,806) 31,470,034

Net income/(loss) after taxation 60,995,586 (137,595,791) 27,542,344

96


2010 2009 2008

RM RM RM

Total Shariah-compliant investment 1,126,950,400 813,900,383 561,049,540


Total Shariah-compliant assets 1,255,018,302 992,021,438 703,267,964

Total liabilities 13,419,272 10,626,923 12,762,320

Net assets attributable to Unit holders 1,241,599,030 981,394,515 690,505,644

NAV per unit (RM) 0.9668 0.8369 1.0473

CIMB Islamic DALI Equity Fund – FYE: 31 May

Income statement

2010 2009 2008

RM RM RM


Total expenses 3,271,697 1,741,079 2,351,921

Net income/(loss) before taxation (936,374) (26,211,819) 17,678,696

Net income /(losee) after taxation (1,596,043) (26,508,245) 17,063,029

Statement of assets and liabilities 2010 2009 2008

RM RM RM






NAV per unit (RM) (ex-distribution) 0.9708 1.2767 1.7876

CIMB Islamic Small Cap Fund – FYE: 31 May

Income statement

2010 2009 2008

RM RM RM


Total expenses 1,416,482 1,079,298 1,219,328

Net income/(loss) before taxation 12,460,425 (11,503,868) 4,889,873

Net income/(loss) after taxation 12,370,216 (11,657,458) 4,596,806


2010 2009 2008

RM RM RM






NAV per unit (RM) 0.5565 0.4351 0.5528

CIMB Islamic Global Emerging Markets Equity Fund – FYE: 31 July

Income statement

2010 2009 RM RM

Total Shariah-compliant investment income 891,338 (125,477)

Total expenses 494,424 336,462

Net income/(loss) before taxation (396,914) (461,939)

Net income/(loss) after taxation (349,572) (487,523)

97

Statement of assets and liabilities 2010 2009 RM RM

Total Shariah-compliant investment 16,860,993 16,258,312

Total Shariah-compliant other assets 1,212,624 710,678

Total Shariah-compliant assets 18,073,617 16,968,990

Total liabilities 815,725 747,068

Net assets attributable to Unit holders (17,257,892) 16,221,922

NAV per unit (RM) 0.5579 0.5200

CIMB Islamic Greater China Equity Fund – FYE: 31 July

Income statement

2010

RM

Total Shariah-compliant investment (loss)/income (2,853,215)

Total expenses 1,276,986

Net (loss)/income before taxation (4,130,201)

Net (loss)/income after taxation (4,218,659)


2010

RM

Total Shariah-compliant investment 34,916,617

Total Shariah-compliant other assets 1,015,095

Total Shariah-compliant assets 35,931,712

Total liabilities 294,778

Net assets attributable to Unit holders 35,636,934

NAV per unit (RM) 0.2454

CIMB Islamic Sukuk Fund – FYE: 31 August

Income statement

2010 2009 2008 RM RM RM

Total Shariah-compliant investment income 807,901 8,466,660 15,071,449

Total expenses 241,031 2,997,754 3,322,002

Net income/(loss) before taxation 566,870 5,468,906 5,827,727

Net income/(loss) after taxation 566,870 5,468,906 5,827,727

Statement of assets and liabilities 2010 2009 2008 RM RM RM




Total liabilities 527,284 240,294 337,709



CIMB Islamic Kausar Lifecycle 2017 – FYE: 31 August

Income statement

2010 2009 2008 RM RM RM

Total Shariah-compliant investment income 109,604 51,262 98,990

Total expenses 3,032 3,013 2,748

Net income/(loss) before taxation 106,572 48,249 96,242

Net income/(loss) after taxation 100,841 47,876 93,540

98



Total Shariah-compliant other assets 53,978 31,515 178




NAV per unit (RM) 0.5306 0.5078 0.4685


Income statement

2010 2009 2008 RM RM RM


Total expenses 1,352 1,177 1,078




Total Shariah-compliant investment 1,088,824 1,417,943 763,813

Total Shariah-compliant other assets 145,745 62,599 100,484

Total Shariah-compliant assets 1,459,569 1,480,542 864,297

Total liabilities 7,602 5,300 438

Net assets attributable to Unit holders 1,451,967 1,475,242 863,859

NAV per unit (RM) 0.4984 0.4768 0.4617


Income statement

2010 2009 2008 RM RM RM


Total expenses 1,615 1,175 384




Total Shariah-compliant investment 1,388,845 1,507,871 532,939

Total Shariah-compliant other assets 280,196 72,305 61,083

Total Shariah-compliant assets 1,669,041 1,580,176 594,022

Total liabilities 26,790 93 131

Net assets attributable to Unit holders 1,642,251 1,580,083 593,891

NAV per unit (RM) 0.4898 0.4708 0.4559

CIMB Islamic Balanced Fund – FYE: 30 September

Income statement

2010 2009 2008

RM RM RM

Total Shariah-compliant investment income 12,125,013 3,154,617 6,205,173

Total expenses 2,211,435 1,957,761 2,516,428

Net income/(loss) before taxation 134,029 (8,514,489) (6,855,244)

99

Net income/(loss) after taxation (385,488) (8,783,050) (7,097,125)


2010 2009 2008

RM RM RM




Total liabilities 6,050,052 556,638 825,436



CIMB Islamic Global Commodities Equity Fund – FYE: 30 September

Income statement

2010

RM

Total Shariah-compliant investment (loss)/income (210,650)

Total expenses 445,468

Net (loss)/income before taxation (656,118)

Net (loss)/income after taxation (753,516)


2010

RM


Total Shariah-compliant other assets 1,616,819





CIMB Islamic Equity Fund – FYE: 31 October

Income statement

2010 2009 2008

RM RM RM


Total expenses 1,407,111 1,254,328 1,780,404

Net income/(loss) before taxation 10,078,392 (1,856,038) (100,798)

Net income/(loss) after taxation 9,499,943 (2,076,610) (651,886)


2010 2009 2008

RM RM RM




Total liabilities 721,814 2,818,628 1,201,136



CIMB Islamic DALI Equity Theme Fund – FYE: 30 November

Income statement

2010 2009 2008 RM RM RM

Total Shariah-compliant investment income 75,525,173 (9,049,684) (20,310,746)

Total expenses 7,867,955 5,803,814 2,525,752

100

Net (loss)/income before taxation 67,657,218 (14,853,498) (22,836,498)

Net (loss)/income after taxation 66,810,560 (15,438,192) (23,487,788)







NAV per unit (RM) 0.2862 0.2415 0.1746

CIMB Islamic Money Market Fund – FYE: 30 November

Income statement

2010 2009 2008 RM RM RM


Total expenses 1,650,252 1,180,723 236,605

Net (loss)/income before taxation 2,111,765 1,376,289 285,550

Net (loss)/income after taxation 2,075,226 1,376,289 285,550








CIMB Islamic Balanced Growth Fund – FYE: 31 December

Income statement

2010 2009 2008

RM RM RM

Total Shariah-compliant investment income 19,867,417 1,552,315 (1,948,259)

Total expenses 1,791,545 352,265 314,555

Net income/(loss) before taxation 18,075,872 1,200,050 (2,262,814)

Net income/(loss) after taxation 17,974,288 1,147,184 (3,160,403)


2010 2009 2008

RM RM RM




Total liabilities 2,655,423 451,366 212,349


NAV per unit (RM) 0.5732 0.5130 0.4020

CIMB Islamic Equity Aggressive Fund – FYE: 31 December

Income statement

2010 2009 2008

RM RM RM

Total Shariah-compliant investment income 26,472,556 3,591,395 (11,572,522)

101

Total expenses 2,700,764 876,738 768,614

Net income/(loss) before taxation 23,771,792 2,714,657 (12,341,136)

Net income/(loss) after taxation 23,487,825 2,660,745 (12,640,389)


2010 2009 2008

RM RM RM


Total Shariah-compliant other assets 12,659,408 4,294,490 5,862




NAV per unit (RM) 0.6884 0.5636 0.3548

CIMB Islamic Deposit Fund – FYE: 31 January

Income statement

2010

RM

Total Shariah-compliant investment (loss)/income 945,281

Total expenses 252,227

Net (loss)/income before taxation (31,315)

Net (lsos)/income after taxation (41,764)


2010

RM


Total Shariah-compliant other assets 6,930





CIMB Islamic Enhanced Sukuk Fund – FYE: 31 March

Income statement

2011 2010 2009

RM RM RM

Total Shariah-compliant investment income 2,187,194 1,737,246 (433,195)

Total expenses 295,590 203,729 205,707

Net income/(loss) before taxation 1,880,932 741,210 (1,397,445)

Net income/(loss) after taxation 1,880,932 741,049 (1,417,954)


2011 2010 2009

RM RM RM






NAV per unit (RM) 1.0380 0.9914 0.9438

102

Total Annual Expenses The following table reflects the total annual expenses incurred by the Funds in the preceding financial year/period:

Management fee Trustee fee Other expenses Total annual

expenses Funds

RM % RM % RM % RM %


CIMB Islamic Asia Pacific Equity Fund 1,050,829 1.79 40,862 0.07 158,820 0.27 1,250,511 2.13

CIMB Islamic Global Equity Fund 1,115,642 2.33 48,244 0.10 158,332 0.33 1,322,218 2.76

As at 31 May 2010, in %

CIMB Islamic DALI Equity Growth Fund 18,083,620 1.46 964,460 0.06 400,793 0.03 19,448,873 1.55

CIMB Islamic DALI Equity Fund 2,910,153 1.27 137,083 0.06 224,461 0.10 3,271,697 1.43

CIMB Islamic Small Cap Fund 1,290,810 1.35 41,864 0.04 83,808 0.09 1,416,482 1.49



336,518 1.95 18,069 0.10 139,837 0.81 494,424 2.86

CIMB Islamic Greater China Equity Fund 1,114,954 3.13 48,001 0.13 114,031 0.32 1,276,986 3.58


CIMB Islamic Sukuk Fund 197,034 0.84 12,395 0.05 31,602 0.14 241,031 1.03

CIMB Islamic Kausar Lifecycle 2017 N/A N/A 2,820 0.09 212 0.01 3,032 0.10




CIMB Islamic Balanced Fund 1,835,303 1.41 122,353 0.09 253,779 0.20 2,211,435 1.70


385,837 1.27 16,685 0.06 42,946 0.14 445,468 1.47


CIMB Islamic Equity Fund 1,167,445 1.61 46,698 0.06 192,968 0.27 1,407,111 1.94


CIMB Islamic DALI Equity Theme Fund 7,433,678 1.42 396,463 0.08 37,814 0.01 7,867,955 1.51

CIMB Islamic Money Market Fund 1,392,474 0.55 222,796 0.09 34,982 0.01 1,650,252 0.65


CIMB Islamic Balanced Growth Fund 1,321,367 0.91 71,149 0.05 399,029 0.28 1,791,545 1.24

CIMB Islamic Equity Aggressive Fund 1,561,142 1.08 104,077 0.07 1,035,545 0.72 2,700,764 1.87


CIMB Islamic Deposit Fund 187,210 1.35 33,282 0.24 31,735 0.23 252,227 1.82


CIMB Islamic Enhanced Sukuk Fund 189,753 0.91 13,282 0.06 92,555 0.44 295,590 1.41

The latest audited figure as at 30 April 2011 for IAPEF is not available.

Past performance of the Funds is not an indication of the Funds’ future performance. The

Funds’ annual reports are available upon request.

103

Management Expense Ratio (“MER”) The following table reflects the management expense ratio (“MER”) of the Funds for the three (3) most recent financial years:

Financial Year Ended 30 April 2010 30 April 2009 30 April 2008

CIMB Islamic Asia Pacific Equity Fund 2.15 2.22 2.09

CIMB Islamic Global Equity Fund 2.21 2.64 -

Financial Year Ended 31 May 2010 31 May 2009 31 May 2008

CIMB Islamic DALI Equity Growth Fund 1.59 1.61 1.60

CIMB Islamic DALI Equity Fund 2.07 2.06 2.13

CIMB Islamic Small Cap Fund 2.03 1.98 1.98

Financial Year Ended 31 July 2010 31 July 2009 31 July 2008


2.73 2.16 -

CIMB Islamic Greater China Equity Fund 3.43 - -

Financial Year Ended 31 August 2010 31 August 2009 31 August 2008

CIMB Islamic Sukuk Fund 1.12 1.04 1.02

CIMB Islamic Kausar Lifecycle 2017 0.09 0.09 0.10



Financial Year Ended 30 September 2010 30 September 2009 30 September 2008

CIMB Islamic Balanced Fund 1.81 1.75 1.72


1.53 - -

Financial Year Ended 31 October 2010 31 October 2009 31 October 2008

CIMB Islamic Equity Fund 1.80 1.78 1.85

Financial Year Ended 30 November 2010 30 November 2009 30 November 2008

CIMB Islamic DALI Equity Theme Fund 1.59 1.61 1.19

CIMB Islamic Money Market Fund 0.59 0.59 0.43

Financial Year Ended 31 December 2010 31 December 2009 31 December 2008

CIMB Islamic Balanced Growth Fund 2.00 1.77 1.77

CIMB Islamic Equity Aggressive Fund 1.65 1.63 1.71

Financial Year Ended 31 January 2011 31 January 2010 31 January 2009

CIMB Islamic Deposit Fund 0.78 - -

Financial Year Ended 31 March 2011 31 March 2010 31 March 2009

CIMB Islamic Enhanced Sukuk Fund 1.28 1.19 1.16

The latest audited figure as at 30 April 2011 for IAPEF are not yet available. The audited financial statements of the Funds are disclosed in the respective Fund’s annual report and are available upon request. Past performance of the Funds is not an indication of its future performance. The Funds’ annual reports are available upon

request.

104

Fees, Charges and Expenses

Charges The following describes the charges that you may directly incur when you buy or redeem units of the Funds.

Application Fee The Application Fee will be imposed based on the NAV per unit and may differ between distribution channels.

Maximum Application Fee (% of the NAV per unit) *

CWA Other IUTAs

(%) (%)

Equity Funds

CIMB Islamic DALI Equity Growth Fund 6.5 6.5

CIMB Islamic DALI Equity Fund 6.5 6.5

CIMB Islamic DALI Equity Theme Fund 6.5 6.5

CIMB Islamic Equity Fund 6.5 6.5

CIMB Islamic Equity Aggressive Fund 5.0 5.0

CIMB Islamic Small Cap Fund 6.5 6.5

Mixed Asset Funds

CIMB Islamic Balanced Fund 6.5 6.5

CIMB Islamic Balanced Growth Fund 6.0 5.0


CIMB Islamic Enhanced Sukuk Fund 2.0 2.0

CIMB Islamic Sukuk Fund 2.0 2.0




CIMB Islamic Asia Pacific Equity Fund 5.0 5.0

CIMB Islamic Greater China Equity Fund 6.5 6.5


6.5 6.5

CIMB Islamic Global Equity Fund 6.5 6.5


6.5 6.5

CIMB Islamic Kausar Lifecycle Funds 6.5 6.5

* Notwithstanding the maximum Application Fees disclosed above, investors may negotiate with the distributors for lower

charges. Please note that investors investing via EPF Members Investment Scheme will only be charged a maximum Application Fee of 3% of the NAV per unit.

Note: Please refer to the “Calculation of investment amount and units entitlement” section in the “Transaction Information” chapter for an illustration on how the Application Fee is calculated. The Application Fee imposed will be rounded using the normal rounding policy to two (2) decimal places.

Withdrawal Fee No Withdrawal Fee is charged on withdrawals from any of the Funds except for the CIMB Islamic Kausar Lifecycle Funds. A Withdrawal Fee of up to 1.0% of the NAV per unit is levied on a withdrawal made within two (2) years from the date the investment is accepted by the Manager. The Withdrawal Fee may differ between distribution channels. All Withdrawal Fees borne by Unit holders will be retained by the relevant Funds.

105

Maximum Withdrawal Fee (% of NAV per unit) * Distribution Channels

First year Second year Subsequent years

CWA 1.0% 0.5% Nil

Other IUTAs 1.0% 0.5% Nil

* Notwithstanding the maximum Withdrawal Fee disclosed above, investors may negotiate with the distributors for lower charges. Note: Please refer to the “Calculation of investment amount and units entitlement” section in the “Transaction Information” chapter for an illustration on how the Withdrawal Fee is calculated. The Withdrawal Fee imposed will be rounded using the normal rounding policy to two (2) decimal places.

Dilution fee / transaction cost factor No dilution fee/transaction cost factor is charged on withdrawals from any of the Funds.

Switching Fee Since switching is treated as a withdrawal from one (1) fund and an investment into another fund, you will be charged a Switching Fee equal to the difference (if any) between the Application Fees of these two (2) funds. Switching Fee will not be charged if the fund to be switched into has a lower Application Fee. For example, you had invested in a fund with an Application Fee of 2.0% on the NAV per unit and now wish to switch to another fund which has an Application Fee of 5.5% on the NAV per unit. Hence, you will be charged a Switching Fee of 3.5% on the NAV per unit on the amount switched. In addition, the Manager imposes a RM100 administrative fee for every switch made out of a CIMB-Principal Fund. However, this RM100 administrative fee is waived for the first four (4) switches out of a Fund in every calendar year. However, the Manager has the discretion to waive the Switching Fee and/or administrative fees. Switching may also be subject to a withdrawal charge should the fund to be switched out from impose a Withdrawal Fee.

Transfer Fee A Transfer Fee of not more than RM50.00 may be charged for each transfer.

Fees and Expenses The following describes the fees that you may indirectly incur when you invest in the Funds.

Management Fee Table below stipulates the annual Management Fee charged for each Fund, based on NAV of the Fund. The Management Fee shall be accrued daily based on the NAV of the Fund and paid monthly.

Funds Management Fee (% p.a. of the NAV of the Fund)

Equity Funds

CIMB Islamic DALI Equity Growth Fund 1.50

CIMB Islamic DALI Equity Fund 1.85

CIMB Islamic DALI Equity Theme Fund 1.50

CIMB Islamic Equity Fund 1.50

CIMB Islamic Equity Aggressive Fund 1.50

CIMB Islamic Small Cap Fund 1.85

Mixed Asset Funds

CIMB Islamic Balanced Fund 1.50

CIMB Islamic Balanced Growth Fund 1.50


CIMB Islamic Enhanced Sukuk Fund 1.00

CIMB Islamic Sukuk Fund 0.95

CIMB Islamic Money Market Fund 0.50

CIMB Islamic Deposit Fund 0.45


CIMB Islamic Asia Pacific Equity Fund 1.80

CIMB Islamic Greater China Equity Fund 1.85

106

CIMB Islamic Global Emerging Markets Equity Fund 1.85

CIMB Islamic Global Equity Fund 1.85

CIMB Islamic Global Commodities Equity Fund 1.85

CIMB Islamic Kausar Lifecycle Funds 1.80

Illustration on how the Management Fee is calculated Management Fee for the day = NAV of the Fund x Management Fee rate for the Fund (%) / 365 days If the NAV of the CIMB Islamic Enhanced Sukuk Fund is RM500 million, then Management Fee for the day = RM500 million x 1.00% / 365 = RM13,698.63 Where a Fund invests in ETFs or other Shariah-compliant collective investment schemes managed by the Manager: � all initial charges on those ETFs or other Shariah-compliant collective investment schemes must be waived, and � Management Fee must only be charged once, either at the Fund level or the ETF or other Shariah-compliant collective

investment scheme level.

Trustee Fee Table below stipulates the Trustee Fee charged for each Fund, based on NAV of the Fund. The Trustee Fee shall be accrued daily and paid monthly.

Trustee Fee

(% p.a. of the NAV of the Fund)

[See NOTE 1]

Local

custodian fee

Foreign

custodian fee

Equity Funds

CIMB Islamic DALI Equity Growth Fund 0.08 Nil Nil

CIMB Islamic DALI Equity Fund 0.06* Nil NOTE 3

CIMB Islamic DALI Equity Theme Fund 0.08* NOTE 2 Nil

CIMB Islamic Equity Fund 0.06* Nil NOTE 3

CIMB Islamic Equity Aggressive Fund 0.10 NOTE 2 Nil

CIMB Islamic Small Cap Fund 0.06* Nil Nil

Mixed Asset Funds

CIMB Islamic Balanced Fund 0.10** Nil NOTE 3

CIMB Islamic Balanced Growth Fund 0.07* NOTE 2 Nil


CIMB Islamic Enhanced Sukuk Fund 0.07* NOTE 2 Nil

CIMB Islamic Sukuk Fund 0.06* Nil Nil

CIMB Islamic Money Market Fund 0.08* NOTE 2 Nil

CIMB Islamic Deposit Fund 0.08* Nil Nil


CIMB Islamic Asia Pacific Equity Fund 0.07* NOTE 2 NOTE 3

CIMB Islamic Greater China Equity Fund 0.08* NOTE 2 NOTE 3


0.08* NOTE 2 NOTE 3

CIMB Islamic Global Equity Fund 0.08* NOTE 2 NOTE 3


0.08* NOTE 2 NOTE 3

CIMB Islamic Kausar Lifecycle Funds 0.08* NOTE 2 NOTE 3

* Subject to a minimum fee of RM18,000 per annum. ** Subject to a minimum fee of RM35,000 per annum NOTE 1 - The annual Management Fee and the annual Trustee Fee are accrued daily based on the NAV of the Fund and paid

monthly. NOTE 2 - The Trustee Fee includes the local custodian fee but excludes the foreign sub-custodian fee (if any). NOTE 3 - Foreign custodian fee (applicable to IEF only)

107

The foreign custodian fee ranges from a minimum of 0.01% p.a. to a maximum of 0.38% p.a. of the NAV of the foreign portfolio, depending on the country invested, and is charged monthly in arrears, subject to a minimum fee of USD1,500 per month.

Foreign custodian fee (applicable to DALI2 & IBF only)

The foreign custody charges (safekeeping fee and transaction fee, including out of pocket charges) are subject to a minimum of USD500 per month per fund and are charged monthly in arrears. The safekeeping fee ranges from a minimum of 0.04% p.a. to a maximum of 0.38% p.a. of the market value of the respective foreign portfolio, depending on the country invested. The transaction fee is charged for every transaction and the amount is dependent on the country invested.

Foreign custodian fee (applicable to IAEF, IGEMEF, IGEF, IGCEF, ICEF & ILF only) The foreign sub-custodian fee is dependant on the country invested and is charged monthly in arrears.

Illustration on how the Trustee Fee is calculated Trustee Fee for the day = NAV of the Fund x Trustee Fee rate for the Fund (%) / 365 days If the NAV of CIMB Islamic DALI Equity Fund is RM500 million, then Trustee Fee for the day = RM500 million x 0.06% / 365 = RM821.92

Anti Dilution Levy For the CIMB Islamic Kausar Lifecycle Funds, an Anti Dilution Levy (“ADL”) may be charged in relation to a Fund’s application for and redemption of units in Shariah-compliant collective investment schemes managed by other fund managers. The ADL is an allowance for fiscal and other charges that is added to (for application for units) or deducted from (for redemption of units) the net asset value per unit to reflect the costs of investing application monies in underlying assets of the Shariah-compliant collective investment schemes or cost of disposal of the underlying assets. The levy is intended to be used to ensure that all investors in the Shariah-compliant collective investment schemes are treated equitably by allocating transaction costs to the investors whose transactions give rise to those costs. The ADL imposed may differ from one Shariah-compliant collective investment schemes to another. For example, an investment by the CIMB Islamic Kausar Lifecycle Funds into any of PGI’s funds is subject to an ADL if the subscription exceeds 10% of that PGI fund’s NAV. The ADL rate varies on a monthly basis depending on market conditions. Illustration on how an Anti Dilution Levy is imposed Assume that the CIMB Islamic Kausar Lifecycle Funds intend to invest RM40 million into a PGI fund and the size of the subscription exceeds 10% of that PGI fund’s NAV. For the illustration below, assume that the NAV per unit of that PGI fund is USD10.21 and the ADL imposed is 0.08% on the NAV per unit. The exchange rate used is RM3.20 : USD1 Calculation of investment amount in USD = RM40,000,000 / RM3.20 = USD12,500,000 Calculation of number of units received by ILF = Investment amount / [NAV per unit of PGI fund x (1 + ADL)] = USD12,500,000 / [USD10.21 x (1 + 0.08)] = 1,133,601.77 units Calculation of net investment in USD = Number of units received by ILF x NAV per unit of PGI fund = 1,133,601.77 units x USD10.21 = USD11,574,074.07 Calculation of ADL imposed in RM = (USD12,500,000 - USD11,574,074.07) x 3.20 = RM2,962,962.98

Expenses The Deeds also provide for payment of other expenses. The major expenses recoverable directly from the Funds include: � expenses incurred in the sale, purchase, insurance, custody and any other dealings of investments including commissions/fees

paid to brokers and costs involved with external specialists approved by the Trustees in investigating and evaluating any proposed investment;

� (where the custodial function is delegated by the Trustees), charges/fees paid to the sub-custodian; � expenses incurred in the printing of, the purchasing of stationery and postage for the annual and interim (if any) reports; � costs associated with the custody of investments delegated by the Trustees (in respect of foreign custody only); � tax and other duties imposed by the government and other authorities and bank fees; � Shariah Adviser’s fee and expenses; � tax agent’s and auditor’s fees and expenses; � valuation fees paid to independent valuers for the benefit of the Funds; � costs incurred in modifying the Deeds for the benefit of Unit holders; and

108

� cost of convening and holding meetings of Unit holders (other than those meetings convened by or for the benefit of the Manager or the Trustees).

The Manager and the Trustees are required to ensure that any fees or charges payable are reasonable and in accordance with the Deeds which stipulate the maximum rate in percentage terms that can be charged. The Manager will ensure that there is no double charging of management fees to be incurred by an investor when investing in the Funds. The Manager may alter the fees and charges (other than the Trustee Fee) within such limits, and subject to such provisions, as set out in the Deeds and the SC Guidelines. The Manager may, for any reason at any time, where applicable, waive or reduce the amount of any fees (except the Trustee Fee) or other charges payable by the investor in respect of the Funds, either generally (for all investors) or specifically (for any particular investor) and for any period or periods of time at its absolute discretion. Expenses not authorised by the Deeds must be paid by CIMB-Principal or the respective Trustees out of their own funds if incurred for their benefit.

Autodebit / Standing Instruction Autodebit and other Standing Instruction facilities are available at selected banks and handling charges will be borne by the investors. For more details, please contact our Customer Care Centre, the details of which are set out in the “Additional Information” chapter.

Rebates and soft commissions CIMB-Principal, CIMB-Principal (S), PGI and SIMSL (including their officers) as well as the Trustees will not retain any form of rebate or soft commission from, or otherwise share in any commission with, any broker in consideration for directing dealings in the investments of the Funds unless the soft commission received is retained in the form of goods and services such as financial wire services and stock quotations system incidental to investment management of the Funds. All dealings with brokers are executed on best available terms.

There are fees and charges involved and investors are advised to consider them before investing in the Funds.

109

Transaction Information

Unit pricing The Manager adopts a single pricing method to price the units in relation to an application for and a withdrawal of units. This means that the application for and withdrawal of units will be carried out at NAV per unit. The Application Fee / Withdrawal Fee (if any) will be computed and charged separately based on your application / withdrawal amount. The Application Fee (if any) may differ between distribution channels as well as for applications made under the EPF Members Investment Scheme (where available). The single price for an application for / withdrawal of units shall be the daily NAV per unit at the next valuation point after the Manager receives the relevant completed application / redemption form (i.e. forward prices are used). However, for investments into CIMB Islamic Money Market Fund, applications made under the EPF Members Investment Scheme shall be the daily NAV per unit at the next valuation point after disbursement of funds by the EPF. The unit price is based on the closing market price of the Fund’s underlying investments as at the end of that Business Day. Thus, for CIMB Islamic DALI Equity Growth Fund, CIMB Islamic DALI Equity Fund, CIMB Islamic DALI Equity Theme Fund, CIMB Islamic Equity Fund, CIMB Islamic Equity Aggressive Fund, CIMB Islamic Small Cap Fund, CIMB Islamic Balanced Fund, CIMB Islamic Balanced Growth Fund, CIMB Islamic Enhanced Sukuk Fund, CIMB Islamic Sukuk Fund, CIMB Islamic Money Market Fund and CIMB Islamic Deposit Fund, the unit price (i.e. NAV per unit of the Fund) for a Business Day is available on our website at http://www.cimb-principal.com.my after 10:00 a.m. on the following Business Day. Should investors rely on the local dailies, the unit price is published in the local dailies on the following Business Day. However, for CIMB Islamic Asia Pacific Equity Fund, CIMB Islamic Global Emerging Markets Equity Fund, CIMB Islamic Global Equity Fund, CIMB Islamic Global Commodities Equity Fund and CIMB Islamic Kausar Lifecycle Funds, the valuation point for a Business Day will be at 11:00 a.m. on the following Business Day. The rationale for this is that at the close of Malaysian markets, the foreign markets in which these Funds invest in are still open for trading/have not performed their valuation for the day. As such, any price/valuation adopted for these foreign securities may not be final for the relevant Business Day. To value the investments more accurately, it would be better to extract the closing prices/valuation of the foreign securities; hence, unit pricing is best performed on the following Business Day. As for CIMB Islamic Greater China Equity Fund, the valuation will also be on the following Business Day in order to streamline the valuation of foreign portfolio with regard to its exchange rate. The unit price (i.e. NAV per unit of the Fund) for a Business Day is available on our website at http://www.cimb-principal.com.my after 1:30 p.m. on the following Business Day. Should investors rely on the local dailies, the unit price is published in the local dailies two (2) Business Days later. For any transactions (i.e. purchases, redemptions, switches or transfers) before 4:00 p.m. on a Business Day, the price for these transactions will be the unit pricing for that Business Day. Transactions at or after 4:00 p.m. will be processed using the unit pricing for the next Business Day. Illustration (for CIMB Islamic Asia Pacific Equity Fund, CIMB Islamic Global Emerging Markets Equity Fund, CIMB Islamic Greater China Equity Fund, CIMB Islamic Global Equity Fund, CIMB Islamic Global Commodities Equity Fund and CIMB Islamic Kausar Lifecycle Funds) For a transaction made before 4:00 p.m. on a Business Day For the market close of 1 August 2011, the unit price for the Business Day will be calculated on the next Business Day, that is, 2 August 2011. The unit pricing will be made known on our website after 1:30 p.m. on 2 August 2011. However, the publication date on local dailies for the prices as at 1 August 2011 will be 3 August 2011. For a transaction made at or after 4:00 p.m. on a Business Day For the market close of 1 August 2011, the unit price will be for the next Business Day, which will be calculated two (2) days later, that is, 3 August 2011. The unit pricing will be made known on our website after 1:30 p.m. on 3 August 2011. However, the publication date on local dailies will be 4 August 2011 Each Fund must be valued at least once for every Business Day. Unit prices (i.e. the NAV per unit) are calculated based upon the Net Asset Value of the Fund and the number of units in issue in the Fund. The method of determining NAV per unit is calculated as follows: NAV per unit = Net Asset Value . Number of units in issue The NAV of a Fund for a Business Day is calculated at the end of every Business Day or the next Business Day, whichever is applicable, and is the sum of the value of all investments and cash held by the Fund (calculated in accordance with the Deeds) including income derived by the Fund which has not been distributed to Unit holders, less all amounts owing or payable in respect of the Fund which also includes any provisions that the Trustees and CIMB-Principal consider should be made. For example, a provision may be made for possible future losses on an investment which cannot be fairly determined. Note: The Manager will ensure the accuracy of the prices to the press for publication. The Manager, however, will not be held liable for any error or inaccuracies in prices published.

110

Incorrect Pricing The Manager shall take immediate remedial action to rectify any incorrect valuation and/or pricing of the Fund or units of the Fund. Where such error has occurred, monies shall be reimbursed in the following manner:

(a) in the event of over valuation or pricing, by the Manager to the Fund (if there is a redemption of units) and/or to the Unit holders who purchase units at a higher price; or

(b) in the event of under valuation or pricing, by the Manager to the Fund (if there is a sale of units) and/or to the Unit holders or former Unit holders who redeem at a lower price.

Notwithstanding the foregoing, unless the Trustee otherwise directs, no reimbursement shall be made save and except where an incorrect pricing:

(i) is equal to or more than zero point five per centum (0.5%) of the Net Asset Value per unit; and (ii) results in a sum total of Ringgit Malaysia Ten (RM10.00) or more to be reimbursed to a Unit Holder for each sale or

repurchase transaction. Subject to any regulatory requirements, the Manager shall have the right to amend, vary or revise the above said limits or threshold from time to time and disclose such amendment, variation or revision in this Master Prospectus (Shariah-compliant Funds). Calculation of investment amount and units entitlement Illustration 1 Calculation of number of units received, Application Fee and total amount paid by investor Assumptions: NAV per unit = RM0.5000 (truncated to 4 decimal places) Application Fee charged by CWA = 6.5% Application Fee charged by other IUTA = 5.5% An investor wishes to invest RM10,000 in the Fund through an IUTA. Calculation of total number of units received by investor

= Investment amount / NAV per unit = RM10,000 / RM0.5000 = 20,000 units Calculation of Application Fee paid by investor (which is payable in addition to the investment amount)

= NAV per unit x number of units received x Application Fee rate = RM0.5000 x 20,000 units x 5.5% = RM550 Calculation of total amount paid by investor

= Investment amount + Application Fee paid = RM10,000 + RM550 = RM10,550 Calculation of investment value Following the example above, assuming the NAV per unit calculated for a Business Day is RM0.5110 (truncated to 4 decimal places). Calculation of investment amount

= Number of units x NAV per unit = 20,000 units x RM0.5110 = RM10,220 Illustration 2: Calculation of withdrawal value, Withdrawal Fee and amount payable to investor Assuming another investor, with 50,000 units, requests for a RM10,000 withdrawal from his investment in the Fund. His withdrawal request is received before 4:00 p.m. NAV per unit for that day is RM0.5230 (truncated to 4 decimal places) and there is a Withdrawal Fee of 1.0% charged. Calculation of number of units withdrawn

= Withdrawal value / NAV per unit = RM10,000 / RM0.5230 = 19,120.46 units Calculation of number of remaining units

= Units held before withdrawal – Units withdrawn = 50,000 units – 19,120.46 units = 30,879.54

111

Calculation of Withdrawal Fee paid by investor (to be deducted from withdrawal value)

= NAV per unit x number of units withdrawn x Withdrawal Fee rate = RM0.5230 x 19,120.46 units x 1.0% = RM100 Calculation of amount payable to investor

= Withdrawal value – Withdrawal Fee paid = RM10,000 – RM100 = RM9,900 The amount payable to the investor is RM9,900.

Transaction Details

Investing Who can invest? Application for investment can only be made in Malaysia and/or in such countries where approval for sale has been obtained from the relevant regulatory authorities in that country. The following investors are eligible to invest in the Funds: � an individual who is at least eighteen (18) years of age and is not an undischarged bankrupt, investing in single or joint names

(i.e. as a joint Unit holder); � an institution including a company, corporation, co-operative, trust or pension fund. However, CIMB-Principal has the right to reject an application on reasonable grounds. Further, where CIMB-Principal becomes aware of a USA resident investor (i.e. someone who has a USA address, permanent or mailing) holding units in the Fund, a notice may be issued to that person requiring him/her to, within thirty (30) days, either withdraw his/her units or transfer his/her units to a non-USA resident. Can the units be registered in the name of more than one (1) Unit holder? Units may be registered in the name of more than one (1) Unit holder but CIMB-Principal is not bound to register more than two (2) joint holders and both applicants must be at least eighteen (18) years of age. In the event of the demise of a joint holder, the Manager is authorised to recognize only the surviving joint holder as having any claim to the units as the rightful owner or when the deceased is a Muslim, acting as wasi/administrator. Who is distributing these Funds? The Funds may be distributed via the following channels: � CWA, an IUTA of the Manager; and � Other IUTAs The addresses and contact numbers of the head office and regional offices of CIMB-Principal are disclosed in the Corporate Directory. The Approved Distributors of the Funds are listed in the “Distributors of the Funds” chapter. Please take note that if your investments are made through an IUTA via a nominee system of ownership, you would not be deemed to be a Unit holder under the Deeds and as a result, may not exercise all the rights ordinarily conferred to a Unit holder (e.g. the right to call for Unit holders’ meetings and the right to vote at a Unit holders’ meeting).

Minimum investments The minimum initial investments for each Fund are stipulated in the table below.


Minimum initial investment

(RM)

Minimum additional

investment (RM)


(RM)


(RM)

Equity Funds


500 200 500 200

CIMB Islamic DALI Equity Fund 500 200 500 200


500 200 500 200

CIMB Islamic Equity Fund 500 200 500 200


500 200 500 200

112



(RM)

Minimum additional

investment (RM)


(RM)


(RM)

CIMB Islamic Small Cap Fund 500 200 500 200

Mixed Asset Funds

CIMB Islamic Balanced Fund 500 200 500 200


500 200 500 200


CIMB Islamic Enhanced Sukuk Fund 2,000 500 1,000 500

CIMB Islamic Sukuk Fund 2,000 500 1,000 500

CIMB Islamic Money Market Fund 10,000 1,000 N/A N/A CIMB Islamic Deposit Fund 10,000 1,000 1,000 200



500 200 500 200


500 200 500 200


500 200 500 200

CIMB Islamic Global Equity Fund 500 200 500 200


500 200 500 200


500 200 500 200

^ The Regular Savings Plan (“RSP”) allows you to make regular monthly investments directly from your account held with a bank approved by CIMB-Principal or Approved Distributor.

Note: � Currently the EPF does not allow withdrawals for investments into these Funds. As and when the EPF should allow such

investments, EPF withdrawals for investments into such Funds may be made.

The minimum initial investment for EPF Members Investment Scheme shall be RM500 or as per the amount stated under the Minimum initial investment column, whichever is higher. The list of Funds that is allowed under the EPF Members Investment Scheme will be updated on the website at http://www.cimb-principal.com.my as and when the EPF revises the list. Alternatively, you may contact our Customer Care Centre at (03) 7718 3100 for further information.

� The Manager reserves the right to change the above stipulated amounts from time to time. Investments can be made through any Approved Distributors or the head office of CIMB-Principal (for Institutional Marketing sales) after completing an application form from a current prospectus and attaching a copy of each applicant’s identity card, passport or other identification. On the application form, please select and indicate clearly the amount you wish to invest in the Fund. Investments can be made: � by crossed cheque, banker’s draft, money order or cashier’s order (made payable as advised by the Approved Distributor or

the Manager as the case may be); � directly from your bank account held with Approved Distributors, where applicable; or � by cash if the application is made in person at any branch of Approved Distributors, where acceptable. Investors will have to bear the commission charges for outstation cheque. Where available, the RSP allows you to make regular monthly investments, direct from your account held with a bank approved by the Approved Distributor. Monthly investments made via the RSP will be processed when the application or monthly investment cheque is received by the Manager. Monthly investment can be made by arranging a standing instruction with the Approved Distributor to credit a pre-determined amount to the Fund each month. You can cancel your RSP at any time by providing written instructions to the relevant Approved Distributor to cancel your standing instruction.

113

Processing an application If CIMB-Principal receives a valid application before 4:00 p.m., CIMB-Principal will process it using the NAV per unit for that Business Day. If CIMB-Principal receives the application at or after 4:00 pm, it will be processed using the NAV per unit for the next Business Day. However, for investments into the CIMB Islamic Money Market Fund, applications made under the EPF Members Investment Scheme shall be the daily NAV per unit at the next valuation point after disbursement of funds by the EPF. For the CIMB Islamic Money Market Fund and the CIMB Islamic Deposit Fund, investments made via Telegraphic Transfers or cheques will be processed as follows: a) Telegraphic Transfers

If an application is accepted by the Manager before the cut off time on a Business Day i.e. 4:00 p.m., the NAV per unit quoted at the end of the same Business Day shall apply for the application. For applications received after 4:00 p.m. on a Business Day, it will be treated as received on the following Business Day i.e. NAV per unit quoted at the end of the 2nd Business Day shall apply.

b) Cheques If an application is accepted by the Manager before the cut off time on a Business Day i.e. 4:00 p.m., the NAV per unit quoted at the end of the 3rd Business Day shall apply for the application. For applications received after 4:00 p.m. on a Business Day, it will be treated as received on the following Business Day, i.e. NAV per unit quoted at the end of the 4th Business Day shall apply.

Incomplete applications will not be processed until CIMB-Principal has received all the necessary information. The number of units an investor receives will be rounded down to the second decimal place.

Withdrawals The minimum withdrawal and minimum balance for each Fund is stipulated in the table below, unless you are withdrawing your entire investment. Withdrawals can be made from the Fund by completing a redemption form and sending it to the relevant Approved Distributor or the head office of CIMB-Principal (for Institutional Marketing sales). Please note that for EPF Investments, your withdrawal proceeds will be paid to EPF.

Minimum withdrawal*

Equity Funds

CIMB Islamic DALI Equity Growth Fund RM200 or 200 units

CIMB Islamic DALI Equity Fund RM200 or 200 units

CIMB Islamic DALI Equity Theme Fund RM200 or 800 units

CIMB Islamic Equity Fund RM200 or 400 units

CIMB Islamic Equity Aggressive Fund RM200 or 200 units

CIMB Islamic Small Cap Fund RM200 or 400 units

Mixed Asset Funds

CIMB Islamic Balanced Fund RM200 or 400 units

CIMB Islamic Balanced Growth Fund RM200 or 400 units


CIMB Islamic Enhanced Sukuk Fund RM500 or 500 units

CIMB Islamic Sukuk Fund RM500 or 500 units

CIMB Islamic Money Market Fund RM1,000 or 1,000 units

CIMB Islamic Deposit Fund RM1,000


CIMB Islamic Asia Pacific Equity Fund RM200 or 400 units

CIMB Islamic Greater China Equity Fund RM200 or 800 units

CIMB Islamic Global Emerging Markets Equity Fund RM200 or 400 units

CIMB Islamic Global Equity Fund RM200 or 400 units

CIMB Islamic Global Commodities Equity Fund RM200 or 800 units

CIMB Islamic Kausar Lifecycle Funds RM200 or 400 units

* Subject always to the Manager’s absolute discretion, any withdrawal is subject to the minimum balance being maintained. Please note: 1. The Manager reserves the right to change the above stipulated amounts from time to time. 2. There is no restriction on the frequency of withdrawals. 3. There is no exit and re-entry option.

114

Processing a withdrawal If CIMB-Principal receives a valid withdrawal request before 4:00 p.m., we will process it using the NAV per unit for that Business Day, which will be known on the following Business Day. If CIMB-Principal receives the withdrawal request at or after 4:00 p.m., it will be processed using the NAV per unit for the next Business Day.

If you request a specific amount in RM, the number of units will be calculated by dividing the requested amount in RM by the unit pricing, and the number of units will be rounded to the second decimal place. The amount that you will receive is calculated by the withdrawal value less the Withdrawal Fee, if any. That amount will be paid in RM within ten (10) calendar days. For the CIMB Islamic Sukuk Fund, if the Fund’s total redemption amount is fifteen percent (15%) or more of the total NAV of the Fund, the Manager is allowed to pay Unit holder(s) within fifteen (15) days from the receipt by the Manager of the redemption notice.

For the CIMB Islamic Deposit Fund and the CIMB Islamic Money Market Fund, the withdrawal amount will be paid in RM within three (3) Business Days. For a withdrawal amount greater than RM30 million, a Unit holder must give the Manager prior written notice (electronically or otherwise) of not less than seven (7) Business Days of such intention to withdraw to enable the Manager to process the withdrawal. Any applicable bank charges and other bank fees incurred as a result of a withdrawal by way of telegraphic transfer, bank cheque or other special payment method will be charged to you.

Minimum balance

The minimum balances that must be maintained in the Funds are stipulated in the table below.


Equity Funds

CIMB Islamic DALI Equity Growth Fund 250

CIMB Islamic DALI Equity Fund 250

CIMB Islamic DALI Equity Theme Fund 1,000

CIMB Islamic Equity Fund 500

CIMB Islamic Equity Aggressive Fund 250

CIMB Islamic Small Cap Fund 500

Mixed Asset Funds

CIMB Islamic Balanced Fund 500

CIMB Islamic Balanced Growth Fund 500


CIMB Islamic Enhanced Sukuk Fund 1,000

CIMB Islamic Sukuk Fund 1,000

CIMB Islamic Money Market Fund 5,000

CIMB Islamic Deposit Fund 5,000


CIMB Islamic Asia Pacific Equity Fund 500

CIMB Islamic Greater China Equity Fund 1,000

CIMB Islamic Global Emerging Markets Equity Fund 500

CIMB Islamic Global Equity Fund 500

CIMB Islamic Global Commodities Equity Fund 1,000

CIMB Islamic Kausar Lifecycle Funds 500

If the value of an investment drops below the minimum balance stipulated above, further investment will be required until the balance of the investment is restored to at least the stipulated minimum balance. Otherwise CIMB-Principal can withdraw the entire investment and forward the proceeds to you.

Cooling-off period You have six (6) Business Days after your initial investment (i.e. the date the application is received by CIMB-Principal) to reconsider its appropriateness for your needs. Within this period, you may withdraw your investment at the NAV per unit on the day the units were first purchased and have the Application Fee (if any) repaid. Please note that the cooling-off right is only given to an investor who is investing with CIMB-Principal or any Approved Distributor for the first time. However, corporations/institutions, CIMB-Principal’s staff and person(s) registered to deal in unit trust of CIMB-Principal or any Approved Distributor are not entitled to the cooling-off right. However, investors who invest via the EPF Members Investment Scheme (where available) are subject to EPF’s terms and conditions.

115

Switching Investors have the option to switch into any of the Funds that allow switching of units, offered by CIMB-Principal. The switching is based on the value of your investments in the fund, at the point of exercising the switch. Switching will be conducted based on the value of your investment in a Fund. The minimum amount for a switch must be equivalent to the minimum withdrawal amount applicable to a Fund or such other amount as the Manager may from time to time decide. Please note that the minimum amount for a switch must also meet the minimum initial investment amount or the minimum additional investment amount (as the case may be) applicable to the fund to be switched into. Further, Unit holders must at all times maintain at least the minimum balance required for a Fund to stay invested in that Fund. Currently, there is no restriction on the frequency of switches. The Manager may, at its absolute discretion, allow switching into (or out of) a Fund, either generally (for all Unit holders) or specifically (for any particular Unit holder). However, for the CIMB Islamic Kausar Lifecycle Funds, switching is allowed:

� within the CIMB Islamic Kausar Lifecycle Funds; and � from other Funds into any of the CIMB Islamic Kausar Lifecycle Funds.

Subject always to the Manager’s absolute discretion, switching out from any of the CIMB Islamic Kausar Lifecycle Funds into other Funds is not allowed. To switch, simply complete a switch request form and send to any branch of any Approved Distributors or the head office of CIMB-Principal (for Institutional Marketing sales). Processing a switch A switch is processed as a withdrawal from one fund and an investment into another. If we receive a valid switch request before 4:00 p.m., CIMB-Principal will process it using the NAV per unit for that Business Day. If we receive the request at or after 4:00 p.m., it will be processed using the NAV per unit for the next Business Day. However, Unit holders of CIMB Islamic Balanced Fund, CIMB Islamic DALI Equity Fund and CIMB Islamic Equity Fund should note that, the price of the fund to be switched out from and the price of the fund to be switched into will be that of different days. The table below sets out the pricing policy for switching out of any of the above Funds:

Pricing Date Switching Type

Switch out fund Switch in fund

From IBF / DALI2 / IEF to other non- money market fund

T*

(application received before the cut-off time on the same Business Day)

T+1*


T = Business Day * For Funds that have foreign investment exposure, pricing as at T or T+1 will be made known on T+1 or T+2 Business Day

respectively.

On the other hand, Unit holders of a money market fund should note that, the price of the fund to be switched into will be that of different days. The table below sets out the pricing policy for switching out of a money market fund:



From a money market fund to other non- money market funds

T

(application received by the cut-off time

on the same Business Day)

T*


on the same Business Day) From a money market fund to another

money market fund

T


on the same Business Day)

T+1 Business Day


on the same Business Day) T = Business Day * For Funds that have foreign investment exposure, pricing as at T will be made known on T+1 Business Day.

In addition, Unit holders of other non-money market funds who wish to switch into a money market fund should note that, the price of the fund to be switched out from and the switch-in price for a money market fund will be that of different days. The table below sets out the pricing policy for switching into money market funds:



From other non-money market funds to money market funds

T*


T + 4 Business Days


T = Business Day * For Funds that have foreign investment exposure, pricing as at T will be made known on T+1 Business Day. Note: Investors investing under the EPF Members Investment Scheme are not allowed to switch in to Funds that have foreign

investment exposure.

116

Transfer facility Generally, investors are allowed to transfer their unit holdings, subject to conditions stipulated in the respective Deeds of the Funds. The Manager may refuse to register any transfer of a unit at its absolute discretion. A Transfer Fee of not more than RM50.00 may be charged for each transfer.

Termination of the CIMB Islamic Kausar Lifecycle Funds on Maturity Date Unit holders of the Fund will be given two (2) months’ notice of the Fund’s termination prior to the Maturity Date of the Fund. Unit holders will have the option to switch their investments in the Fund into any of the other CIMB-Principal Funds without any charge, or to withdraw their investments. For Unit holders who have opted to switch their investments into any of the other CIMB-Principal Funds, units in the Fund will be cancelled on its Maturity Date and the Unit holders will receive in exchange the relevant number of units in the fund to be switched into at NAV per unit of the fund without any charge. For Unit holders whose investment purpose is for retirement savings or for future savings, it is encouraged that their investment in the Fund be switched into the CIMB-Principal range of fixed income funds, which are generally more conservative than equity funds. Should the Manager not received the request to switch two (2) weeks before the Maturity Date, the Unit holder will be deemed to have opted to redeem all his investments. All units held by the Unit holder will be redeemed based on the NAV per unit on the Maturity Date. No Withdrawal Fee will be charged by CIMB-Principal. However, any applicable bank charges and other bank fees incurred as a result of withdrawal by way of telegraphic transfer, bank cheque or other special payment method will be charged to Unit holders.

Investors are advised not to make payment in cash when purchasing units of a Fund via any institutional / retail agent.

117

Distributions of the Funds The payment of distributions, if any, from a Fund will depend on its distribution policy and will vary from period to period depending on interest rates*, market conditions and the performance of the Fund. The distribution policy for each Fund is set out in the table below:

Distribution Policy

Equity Funds

CIMB Islamic DALI Equity Growth Fund The Manager has the discretion to distribute a part or all of the Fund’s distributable income. The distribution (if any) may vary from period to period depending on the investment objective and the performance of the Fund.

CIMB Islamic DALI Equity Fund The Manager has the discretion to distribute a part or all of the Fund’s distributable income. The distribution (if any) may vary from period to period depending on the investment objective and the performance of the Fund.

CIMB Islamic DALI Equity Theme Fund Given its investment objective, the Fund is not expected to pay any distribution.

CIMB Islamic Equity Fund The Manager has the discretion to distribute a part or all of the Fund’s distributable income. The distribution (if any) may vary from period to period depending on the investment objective and the performance of the Fund.

CIMB Islamic Equity Aggressive Fund Distribution (if any) is expected to be distributed every January at the Manager’s discretion.

CIMB Islamic Small Cap Fund The Manager has the discretion to distribute a part or all of the Fund’s distributable income. The distribution (if any) may vary from period to period depending on the investment objective and the performance of the Fund.

Mixed Asset Funds

CIMB Islamic Balanced Fund The Manager has the discretion to distribute a part or all of the Fund’s distributable income. The distribution (if any) may vary from period to period depending on the investment objective and the performance of the Fund.

CIMB Islamic Balanced Growth Fund Distribution (if any) is expected to be distributed every January at the Manager’s discretion**.


CIMB Islamic Enhanced Sukuk Fund Distribution (if any) is expected to be distributed annually at the Manager’s discretion**.

CIMB Islamic Sukuk Fund Distribution (if any) is expected to be distributed annually, depending on the performance of the Fund and at the Manager’s discretion.

CIMB Islamic Money Market Fund Monthly, depending on the level of income (if any) the Fund generates.

CIMB Islamic Deposit Fund Monthly, depending on the level of income (if any) the Fund generates.


CIMB Islamic Asia Pacific Equity Fund Regular distributions are not the focus of this fund. Distributions, if any, are at the discretion of the Manager.

CIMB Islamic Greater China Equity Fund Given its investment objective, the Fund is not expected to pay any distribution.



CIMB Islamic Global Equity Fund Given its investment objective, the Fund is not expected to pay any distribution.



CIMB Islamic Kausar Lifecycle Funds Given its investment objective, the Fund is not expected to pay any distribution.

Notes: * The Funds do not invest in interest bearing instruments; the interest rate referred herein is to the general interest rate of the country which may affect the value of the investments of the Funds. ** Pursuant to the Master Deed, the Manager has the right to make provisions for reserves in respect of distribution of the Fund. If the distribution available is too small or insignificant, any distribution may not be of benefit to the Unit holders as the total cost to be incurred in any such distribution may be higher than the amount for distribution. The Manager has the discretion to decide on the amount to be distributed to the Unit holders. At the end of each distribution period, the net income (if any) of the Fund is generally distributed to Unit holders. The net income (if any) is calculated in accordance with the relevant Deeds and is generally calculated by adding the income (including all profit sharing income paid from cash deposits, money market instruments and debentures/instruments as well as any dividends received) and net realised capital gains (calculated by adding all realised capital gains and deducting any realised capital losses) of the Fund for the distribution period and then deducting all expenses incurred by the Fund and any provisions that the Auditors consider proper.

118

Please note that the NAV of a Fund include unrealised gains and losses, if any. These unrealised gains and losses are included in the calculation of the unit price of a Fund. When the gains and losses are realised (that is, the investments are sold by the Fund), they will generally be included in the calculation of the Fund’s net income for the distribution period in which the investments are sold, even though the gains or losses may have accrued before a Unit holder invested in the Fund. The total distributable amount is then divided by the total number of units in issue at the end of the distribution period, to give the distribution on a sen per unit basis (i.e. for every unit owned in a Fund, a Unit holder will receive a specified amount in sen). Each unit will receive the same distribution for a distribution period regardless of when those units were purchased. The distribution amount to be received by each Unit holder is in turn calculated by multiplying the total number of units held by a Unit holder in the Fund by the sen per unit distribution amount. Once a distribution has been paid, the unit price usually falls. Illustration for the 12-month period ended 30 September 2011. Net distribution : 1.68 sen per unit

Pre distribution Post distribution

NAV per unit RM0.5186 RM0.5018

All distributions will be automatically reinvested into additional units in the Fund at the NAV per unit of the Fund on the distribution date (the number of units is rounded down to the nearest two decimal places), unless written instructions to the contrary are communicated by you to the Manager. No Application Fee is payable for the reinvestment. If units are issued as a result of the reinvestment of a distribution or other circumstance after you have withdrawn your investment from the Fund, those additional units will then be withdrawn and the proceeds paid to you. Distribution payments will be made in RM.

Unclaimed monies Income distribution payout to the Unit holders, if any, which remain unclaimed for six (6) months will automatically be reinvested into the Fund based on the prevailing NAV per unit of the Fund. Redemption proceeds payable to Unit holders who have requested for full or partial redemption of their investments in the Fund that remain unclaimed after twelve (12) months as prescribed by the Unclaimed Moneys Act, 1965 (as may be amended from time to time), shall be lodged with the Registrar of Unclaimed Moneys in accordance with the provisions of the Act.

119

The Manager

About CIMB-Principal Asset Management Berhad CIMB-Principal holds a Capital Markets Services License for fund management under the CMSA and specialises in managing and operating unit trusts for Malaysian investors, both institutional and retail. CIMB-Principal’s responsibilities include managing investment portfolios by providing fund management services to insurance companies, pension funds, unit trust companies, corporations and government institutions in Malaysia. CIMB-Principal is a participating unit trust management company under the Malaysia Employees’ Provident Fund (“EPF”) Members’ Investment Scheme and is responsible for managing more than RM24.96 billion on behalf of individuals and corporations in Malaysia. It originally commenced its operations as a unit trust company in November 1995. As at LPD, CIMB-Principal has more than 14 years of experience in the unit trust industry. As at LPD, the shareholders of the company are CIMB Group Sdn. Bhd. (“CIMB Group”) (60%) and Principal International (Asia) Limited (“PIA”) (40%). CIMB Group is held in majority by CIMB Group Holdings Berhad. It is a fully integrated investment bank. It offers the full range of services in the debt markets, the equity markets and corporate advisory. Member companies of CIMB Group also provide services in lending, private banking, private equity, Islamic capital markets as well as research capability in economics, equity and debt markets. PIA is a private company incorporated in Hong Kong and its principal activity is the provision of consultancy services to other PFG group of companies. PIA is a subsidiary of the Principal Financial Group, which was established in 1879 and is a diversified global financial services group servicing more than 15 million customers. As at LPD, CIMB-Principal managed 43 conventional unit trust funds (including 2 Exchange-Traded Funds) and 23 Islamic unit trust funds. In addition to being able to draw on the financial and human resources of its shareholders, CIMB-Principal has staff strength of 170 comprising of 143 executives and 27 non-executives, as at LPD. The primary responsibilities of CIMB-Principal as the Manager of the Funds include: � maintaining a register of Unit holders; � implementing the appropriate investment strategies to achieve the Funds’ investment objectives; � ensuring that the Funds have sufficient holdings in liquid assets; � arranging for the sale and repurchase of units; � calculating the amount of income to be distributed to Unit holders; and � maintaining proper records of the Funds.

Summary of the financial position of the Company

31 December 2010

(RM)

31 December 2009

(RM)

31 December 2008

(RM)

Issued and paid-up share capital 123,474,795 173,474,795 173,474,795

Shareholders’ funds 262,871,379 290,172,438 286,567,530

Revenue 204,366,666 165,885,371 125,970,529

Profit before taxation 33,218,014 36,724,581 29,891,647

Taxation 10,519,073 7,098,454 6,404,957

Profit after taxation 22,698,941 29,626,127 23,486,690

120

Key Personnel

Name: John Campbell Tupling Munirah Khairuddin

Responsibility: Chief Executive Officer / Executive Director. Deputy Chief Executive Officer.

Experience:

Has been an Alternate Director for CIMB-Principal since 22 March 2004 and was redesignated as a principal Director of CIMB-Principal since 22 August 2007 upon his move to Malaysia. He was appointed the Chief Executive Officer / Executive Director of CIMB-Principal on 1 November 2008. Has spent more than 11 years in various positions with Principal Financial Group including COO-Asia (based in Hong Kong), Co-Head of Institutional Pension Segment (based in USA) and Managing Director of Principal International Spain. Previous experience was 15 years with American International Group in various capacities including Managing Director of AIG Mexico and AIG La Tandilense (Argentina).

Joined CIMB-Principal on 1 November 2006. Previously, worked as a G7 Economist and strategist for a Fortune 500 multinational oil and gas company. Prior to that, she was a fixed income portfolio manager for Emerging Markets at Rothschild Asset Management in London. Apart from her Senior Management role, she is responsible for institutional sales and marketing for both domestic and international investors and financial institutions. Her scope also entails developing institutional business opportunities for CIMB-Principal in potential new markets.

Qualifications: Bachelor of Arts, University of Western Ontario, Canada. Bachelor of Arts (Honours) in Accounting & Financial

Analysis, University of Newcastle Upon Tyne, UK; Chartered Financial Analyst Charterholder.

Name: Raymond Tang Norazlina Abdul Rashid

Responsibility: Chief Investment Officer. Head of Compliance.

Experience:

Has been with CIMB-Principal Asset Management since 1 October 2004. He has over 20 years of experience in the asset management business, managing both institutional and unit trust funds. Prior to joining CIMB-Principal, he was the Chief Investment Officer/Executive Director of CMS Dresdner Asset Management from 1996 to 2004 and was jointly responsible in making regional asset allocation decisions within the Asia-Pacific ex-Japan. He began his career as an investment officer in RHB Asset Management in 1987 for 4 years, before moving on to CIMB Securities as an investment executive for 1 year. In 1992, he joined SBB Asset Management as a fund manager until 1996. Currently, he is the Chairman of Malaysian Association of Asset Managers (MAAM) and will be appointed as Chairman of FTSE Bursa Malaysia Index Advisory Committee with effect from 1 June 2011. He is also an invitee in the Executive Committee of Malaysia International Islamic Financial Centre (MIFC), as well as a Director of the Board of Securities Industry Dispute Resolution Centre (SIDREC).

Joined CIMB-Principal on 3 May 2011. She has about 15 years work experience in legal and compliance. Her last position was a Senior Manager, Legal & Compliance at ING Funds Berhad where her main responsibility was to advise the company on all legal and compliance related matters. Prior to ING Funds, she was with RHB Unit Trust Berhad, where she was heading the Corporate Affairs department. She was admitted to the Malaysian Bar in 1997 and started her career as an advocate & solicitor specializing in the area of litigation.

Qualifications:

Fellow of the Chartered Institute of Management Accountants (CIMA) United Kingdom. Holds a Capital Markets Services Representative’s License for fund management under CMSA.

LLB.Hons (Manchester Metropolitan University, UK).

121

The Investment Committee The Manager has appointed the Investment Committee for the Funds pursuant to the requirements under the SC Guidelines. The Investment Committee currently consists of six (6) members including three (3) independent members. Generally, the Investment Committee meets once a month and is responsible for ensuring that the investment management of the Funds is consistent with the objectives of the Funds, the Deeds, the SC Guidelines and relevant securities laws, any internal investment restrictions and policies of the Manager, as well as acceptable and efficacious investment management practices within the unit trust industry. In this role, the powers and duties of the Investment Committee include formulating and monitoring the implementation by the Manager of appropriate investment management strategies for the Funds and the measurement and evaluation of the performance of the Manager.

Date of appointment of Investment Committee Members

Funds Badlisyah bin Abdul Ghani

Fad’l bin Mohamed

John Campbell Tupling

Raja Noorma Raja Othman

Kim Teo Poh Jin

Wong Fook Wah


CIMB Islamic Balance Growth Fund


11/07/2005 11/07/2005

CIMB Islamic Asia Pacific Equity Fund 02/06/2006

24/04/2007 24/04/2007

CIMB Islamic Kausar Lifecycle Funds 12/07/2007

03/01/2008

CIMB Islamic Global Equity Fund 08/01/2008

CIMB Islamic DALI Equity Theme Fund 28/02/2008

CIMB Islamic Money Market Fund 17/03/2008


02/07/2008

CIMB Islamic Greater China Equity Fund 02/06/2009

CIMB Islamic Deposit Fund 09/09/2009


06/01/2010





24/04/2007 17/08/2006 03/01/2008


CIMB Islamic Balanced Fund 24/04/2007 17/08/2006 03/01/2008

01/05/2011

122

Name: Kim Teo Poh Jin* Badlisyah bin Abdul Ghani

Position: Executive Director and Chief Executive Officer, Boardroom Limited Director, Marina Yacht Services Pte. Ltd.

Group Head, Islamic Banking Division – CIMB Group. Executive Director and Chief Executive Officer, CIMB Islamic Bank Berhad

Experience: He has about 25 years of experience in the financial industry, having worked in senior positions of major financial institutions.

Joined CIMB in 2002 and was attached to the Corporate Finance Division, prior to his appointment as Head of CIMB Group Islamic Banking Division. He was appointed as Executive Director/Chief Executive Officer of CIMB Islamic Bank Berhad in 2006. He is responsible for all Islamic banking and finance business of the CIMB Group.

Qualifications: Bachelor of Arts majoring in Economics from the Heriot-Watt University of Edinburgh.

Bachelor of Laws Degree from the University of Leeds.

Name: Fad’l bin Mohamed * Raja Noorma binti Raja Othman

Position: Managing Director, Maestro Capital Sdn. Bhd. Chief Executive Officer of CIMB-Mapletree Management Sdn. Bhd. and Director of the Group Asset Management arm of CIMB.

Experience:

Has more than 15 year’s exposure in the areas of law and finance. He is a holder of the Capital Markets Services Representative's Licence for corporate finance advisory and his previous experiences include working for an international investment bank and the Securities Commission.

Has been a Director of CIMB-Principal since 24 April 2007. Prior to joining CIMB Group in 2005, she was the Vice-President of Investment Banking for JP Morgan, a position she held for over 5 years. She was attached to JP Morgan’s offices in Hong Kong, Singapore and Malaysia as both industry and client coverage banker. At JP Morgan, she originated and executed several transactions involving corporate advisory, equity and debt capital markets, private equity, cross border mergers and acquisitions and IPO transactions. She also has over 10 years experience in industry with Malaysia’s largest telecommunications company, Telekom Malaysia Berhad, where the last post she held was Head of Corporate Finance.

Qualifications: Bachelor of Laws (Hons) from the University of London; Certified Diploma in Accounting and Finance (Association of Chartered Certified Accountants).

Bachelor of Business Administration degree from Ohio University, United States of America under a twinning programme with Institut Teknologi MARA.

Name: John Campbell Tupling Wong Fook Wah*

Position: Chief Executive Officer / Executive Director – CIMB-Principal Asset Management Berhad

Retiree and ex-Deputy Group Chief Executive for RAM Holdings Berhad.

Experience:

Has been an Alternate Director for CIMB-Principal since 22 March 2004 and was redesignated as a principal Director of CIMB-Principal since 22 August 2007 upon his move to Malaysia. He was appointed the Chief Executive Officer / Executive Director of CIMB-Principal on 1 November 2008. Has spent more than 11 years in various positions with Principal Financial Group including COO-Asia (based in Hong Kong), Co-Head of Institutional Pension Segment (based in USA) and Managing Director of Principal International Spain. Previous experience was 15 years with American International Group in various capacities including Managing Director of AIG Mexico and AIG La Tandilense (Argentina).

Wong had served 20 years in RAM Holdings Bhd., from its inception as Malaysia’s first credit rating agency in 1991. He held several positions over the years including Managing Director/CEO of RAM Rating Services Sdn. Bhd. His last position was that of Depity Group Executive Officer of RAM Holdings Berhad (“RAM”). He retired from RAM in March 2011. Prior to joining RAM, Wong worked for the Ministry of Finance, Malaysia from 1977 to April 1991. He first served as an economist in the Economics Planning Division for the first 8 years. Then, for 4 years from 1987 to 1991, he worked as an analyst in a special task unit handling rehabilitational and restructuring work on ailing Government-owned enterprises. He was on the Board of Directors of the Malaysia Derivatives Exchange Bhd. (MDEX) from 2001 to May 2004 as an appointee of the Ministry of Finance. He also served on the Board of Directors of RAM Rating Services Bhd., Bond Pricing Agency Sdn. Bhd. and RAM Credit Information Sdn. Bhd., representing the interest of RAM Holdings Bhd. prior to retirement.

Qualifications: Bachelor of Arts, University of Western Ontario, Canada. Bachelor of Arts (Economics) from Universiti Malaya and a Masters degree in Policy Science from Saitama University, Japan.

*Independent member

123

The Board of Directors As at LPD, there are thirteen (13) members sitting on the Board of Directors of CIMB-Principal including four (4) Independent Directors and two (2) Alternate Directors. The Board of Directors oversees the management and operations of CIMB-Principal and meets every two (2) months.

Name: Dato’ Mohd Shukri Hussin Datuk Noripah binti Kamso

Position: Executive Director of CIMB Group Holdings Berhad. Director

Experience:

Dato’ Shukri was previously the Chief Operating Officer of CIMB Group Holdings Berhad. He has held various senior positions within the CIMB Group including as Chief Executive Officer of Bank Muamalat Malaysia Berhad from 1999 to 2003 and Chief Executive Officer of CIMB Securities Sdn Bhd (now known as CIMBS Sdn Bhd) from 1992 to 1999. He was appointed as a Director of CIMB Group Holdings Berhad on 3 January 2006. On 8 May 2006 he was appointed as President Commissioner of PT Bank CIMB Niaga. He is also a director of CIMB Group, CIMB Bank, CIMB Islamic, Commerce Capital (Labuan) Limited, CIMB Bank (Labuan) Limited, a Trustee of Yayasan Laporan Kewangan, Director and Chairman of CIMB Aviva Assurance Berhad and CIMB Aviva Takaful Berhad; Chairman of CIMB Wealth Advisors Berhad and Chief Executive Officer of the Board of Trustee of CIMB Foundation.

Datuk Noripah Kamso is the Chief Executive of CIMB-Principal Islamic Asset Management Sdn Bhd. Since 2008, she has successfully established a global platform for the firm to extend its reach across the globe. The firm acts as a global partner to global institutional investors, providing a range of Shariah investment portfolios in both Equities and Sukuk asset-class to suit differing investment needs. She joined CIMB-Principal in September 2004 and became its Director in February 2005. She has over 23 years experience in corporate credit and lending. She has 9 years in derivatives broking business as CEO of CIMB Futures. She has successfully overseen CIMB-Principal’s further expansion into new regional South East Asia markets and institutional mandates. Is currently a Council Member of Federation of Investment Managers Malaysia (FIMM) and Board Member of CIMB-Principal (S) and President Commissioner of PT CIMB Principal Asset Management. Was the Past President of Malaysian Futures Brokers Association (MFBA).

Qualifications:

He holds a Bachelor of Economics (Hons) degree from University of Malaya and qualified as a Chartered Accountant with the Institute of Chartered Accountants in England and Wales.

Bachelor in Business Administration (Northern Illinois University, Dekalb, Illinois, USA); Master in Business Administration (Marshall University, Huntington, West Virginia, USA).

Name: Raja Noorma binti Raja Othman Dato’ Charon Wardini bin Mokhzani (Alternate Director to Dato’ Mohd Shukri Hussin)

Position: Chief Executive Officer of CIMB-Mapletree Management Sdn. Bhd. and Director of the Group Asset Management arm of CIMB.

Executive Director, CIMB Investment Bank Berhad.

Experience:

Has been a Director of CIMB-Principal since 24 April 2007. Prior to joining CIMB Group in 2005, she was the Vice-President of Investment Banking for JP Morgan, a position she held for over 5 years. She was attached to JP Morgan’s offices in Hong Kong, Singapore and Malaysia as both industry and client coverage banker. At JP Morgan, she originated and executed several transactions involving corporate advisory, equity and debt capital markets, private equity, cross border mergers and acquisitions as well as IPO transactions. She also has over 10 years experience in industry with Malaysia’s largest telecommunications company, Telekom Malaysia Berhad, where the last post she held was Head of Corporate Finance.

Has been a Director of CIMB-Principal since 23 November 2004. Currently, the Deputy Chief Executive Officer, Corporate & Investment Banking of CIMB Group and Executive Director of CIMB Investment Bank Berhad, has previously served as an independent non-executive director of CIMB Berhad from 22 December 2002 to 11 July 2003. Prior to this current position, he was the Managing Partner of Malaysia’s then biggest law firm.

Qualifications: Bachelor of Business Administration degree from Ohio University, under a twinning programme with Institut Teknologi MARA.

LLB. Hons. (The School of Oriental and African Studies, University of London); BA Hons. in Philosophy, Politics & Economics (Balliol College, University of Oxford).

Name: Peter William England John Campbell Tupling

Position: Head of Retail Banking – CIMB Bank Berhad. Chief Executive Officer / Executive Director – CIMB-

Principal Asset Management Berhad

Experience:

Has been a Director of CIMB-Principal since 24 April 2007. 2006-current Head Retail Banking – CIMB Bank Bhd. 2004-2005 Head Retail Banking – Hong Leong Bank 2001-2004 Head Retail Banking – RHB Bank Malaysia 2000 Securities Institute of Australia 1997-1999 HSBC Malaysia and Singapore 1979-1996 State Bank of NSW, Australia.

Has been an Alternate Director for CIMB-Principal since 22 March 2004 and was redesignated as a principal Director of CIMB-Principal since 22 August 2007 upon his move to Malaysia. He was appointed the Chief Executive Officer/Executive Director of CIMB-Principal on 1 November 2008. Has spent more than 11 years in various positions with Principal Financial Group, including COO-Asia (based in Hong Kong), Co-Head of Institutional Pension Segment (based in USA) and Managing Director of Principal International Spain. Previous experience was 15 years with American International Group in various capacities including Managing Director of AIG Mexico

124

and AIG La Tandilense (Argentina).

Qualifications:

Masters of Business Administration (MBA) University of Southern Queensland Australia (2004). Accounting Certificate (1988). Australian Higher School Certificate (1979).

Bachelor of Arts, University of Western Ontario, Canada.

Name: Rex Auyeung Brig. Gen (R) Dato’ Arif bin Dato’ Awang *

Position: Vice President of Principal Financial Group; Senior Vice President and Chief Executive – Asia of Principal International, Hong Kong.

Chief Executive Officer of Cybron Holdings Bhd. Also a Director of Geoprima (M) Sdn. Bhd. And Tenaga Tiub Sdn. Bhd.

Experience: Has been a Director of CIMB-Principal since 11 July 2003 and has over 30 years of experience in insurance industry in Canada and Hong Kong.

Has been a Director of CIMB-Principal since 3 November 1995. Also spent 25 illustrious years in the Royal Malaysian Air Force from 1960 to 1984.

Qualifications: Bachelor of Environmental Studies (Honours) in Urban and Regional Planning, University of Waterloo, Canada.

Master of Science (Cranfield Institute of Technology); Advance Management Program (Harvard Business School).

Name: Wong Joon Hian* Dato’ Anwar bin Aji *

Position: Managing Director of Advance Synergy Capital Sdn Bhd.

Chairman of Zelan Berhad, Independent Non-Executive Director of CIMB Islamic Bank Berhad, Director of SPJ Corporation Berhad and Director of SKS Refinery Sdn Bhd.

Has been a Director of CIMB-Principal since 24 April 2007.

Experience:

Has been an independent non-executive director of CIMB-Principal since 22 August 2007. After qualifying as a Chartered Accountant in 1973, he joined Price Waterhouse & Co in England before returning to Malaysia in 1975. He has accumulated over 30 years of working experience in the areas of audit, accountancy, banking, financial services and corporate management. Currently, he is the Managing Director of Advance Synergy Capital Sdn Bhd since 22 September 1995 and serves as a non-executive director in several other non-listed public companies namely SIBB Berhad, formerly known as Southern Investment Bank (non-executive director), CIMB Wealth Advisors Berhad (independent non-executive director) and SFB Auto Berhad (independent non-executive director). He is also a director in several other private limited companies.

1973-1978 1978-1980 1980-1981 1982-1984 1984-1985 1986-1991 1991-1993 1993-1994 1994-2004 2001-2008 2008-current

Assistant Director – Industries Division, Ministry of International Trade & Industry Principal Assistant Secretary – Budget Division, Federal Treasury, Ministry of Finance Principal Assistant Secretary – Economic and International Division, Federal Treasury, Ministry of Finance. Principal Assistant Secretary – Foreign Investment Committee, Economic Planning Unit, Prime Minister Department Principal Assistant Secretary – Investment Division of the Malaysian Tobacco Company Berhad under the British Malaysia Industry and Trade Association training scheme Deputy Director – Petroleum Development Division, Prime Minister’s Department Principal Assistant Secretary – Finance Division, Federal Treasury, Ministry of Finance Special Assistant – The Secretary General of Ministry of Finance Managing Director – Khazanah Nasional Berhad Chairman – Faber Group Berhad Chairman – Zelan Berhad

Qualifications:

Member of the Malaysian Institute of Certified Public Accountants, the Malaysian Institute of Accountants and a fellow member of the Institute of Chartered Accountants in England and Wales.

Bachelor of Economics (Hons) from the University of Malaya (1973); Masters of Arts International Studies from the Ohio University, USA (1982).

Name: Ned Alan Burmeister Loong Chun Nee *

Position: Senior Vice President, Chief Operating Officer and Risk Manager, Principal International.

Group Chief Investment and Performance Officer, Scomi Group Bhd.

Experience:

Appointed as a Director of CIMB-Principal on 30 November 2007. Has been with Principal Financial Group for more than 28 years in the area of actuarial and pension services.

Has been a Director of CIMB-Principal since 6 May 2002. Also spent a total of 5 years with Puncak Niaga Group and 11 years in Renong Group.

Qualifications: Bachelor’s degree from Drake University, Des Moines, Iowa. Member of Society of Actuaries and the American Academy of Actuaries.

Bachelor of Arts in Economics and Social Studies, University of Manchester, England.

125

Name: Badlisyah bin Abdul Ghani (Alternate Director to Raja Noorma binti Raja Othman)

Position: Group Head, Islamic Banking Division – CIMB Group Executive Director and Chief Executive Officer, CIMB Islamic Bank Berhad

Experience:

Has been an Alternate Director of CIMB-Principal since 8 October 2008. Joined CIMB in 2002 and was attached to the Corporate Finance Division, prior to his appointment as Head of CIMB Group Islamic Banking Division. He was appointed as Executive Director and Chief Executive Officer of CIMB Islamic Bank Berhad in 2006. He is responsible for all Islamic banking and finance business of the CIMB Group.

Qualifications: Bachelor of Laws Degree from the University of Leeds.

*Independent Director

Key members of the Investment Team CIMB-Principal's investment team is jointly responsible for the overall investment decisions made on behalf of the Funds. The key members of the Investment Team are:

Name: Raymond Tang Dennis Lee Kwang Hua

Responsibility: Chief Investment Officer. Senior Vice President, Equities.

Experience:

Has been with CIMB-Principal since 1 October 2004. He has over 20 years of experience in the asset management business, managing both institutional and unit trust funds. Prior to joining CIMB-Principal, he was the Chief Investment Officer/Executive Director of CMS Dresdner Asset Management from 1996 to 2004 and was jointly responsible in making regional asset allocation decisions within the Asia-Pacific ex-Japan. He began his career as an investment officer in RHB Asset Management in 1987 for 4 years, before moving on to CIMB Securities as an investment executive for 1 year. In 1992, he joined SBB Asset Management as a fund manager until 1996.

Currently, he is the Chairman of Malaysian Association of Asset Managers (MAAM) and will be appointed as Chairman of FTSE Bursa Malaysia Index Advisory Committee with effect from 1 June 2011. He is also an invitee in the Executive Committee of Malaysia International Islamic Financial Centre (MIFC), as well as a Director of the Board of Securities Industry Dispute Resolution Centre (SIDREC).

Mr Lee is the Senior Vice President, Equities and started his career at an international insurance firm performing actuarial tasks. During his 5 years there, he covered a broad range of sectors including telecommunications, gaming, construction, motor, transportation, consumer, insurance and oil & gas. He then joined one of the largest asset management companies, managing both unit trust and institutional funds for 3 years. All institutional funds under his management were in the first quartile of the annual Watson Wyatt survey in terms of total return for the 1-year and 3-year period ended 31 December 2005. Prior to joining CIMB-Principal, he was Head of Equity of an international fund management company.

Qualifications:

Fellow of the Chartered Institute of Management Accountants (CIMA) United Kingdom. Holds a Capital Markets Services Representative’s License for fund management under CMSA.

Master of Business Administration (Finance); Chartered Financial Analyst Charterholder. He holds a Capital Markets Services Representative’s License for fund management under CMSA.

Name: Nor Hanifah binti Hashim Wu Yah Ning

Responsibility: Fixed Income. Designated Fund Manager for all CIMB-Principal Sukuk funds and money market funds.

Funds Management, Investment.

Experience:

Joined CIMB-Principal from CIMB in January 2005. She was previously the Head of Fixed Income Services at CIMB. She was with CIMB’s Debt Markets and Derivatives Department for almost 12 years and had been managing fixed income portfolios for CIMB’s clients.

Joined CIMB-Principal in November 2008. She was previously the Head of Investment in a local affiliate of an International Investment Management Firm. She has 14 years of experience in the investment and financial industry.

Qualifications:

Bachelor’s degree of Science in Economics & International Relations from the University of Wisconsin Madison, USA and an America Associate of Arts Degree from the State University of New York at Buffalo, USA. She is a member of the Financial Markets Association of Malaysia. She holds a Capital Markets Services Representative’s License for fund management under CMSA.

BSc (Econ) Accounting and Finance from London School of Economics, England and MSc in Investment Management (with Distinction) from City University Business School in London, England. She is a CFA Charterholder and she also holds a Capital Markets Services Representative’s License for fund management under CMSA.

126

Material litigation and arbitration As at LPD, there is no litigation or arbitration proceedings current, pending or threatened against or initiated by CIMB-Principal nor do there exist any facts likely to give rise to any proceedings which might materially affect business/financial position of CIMB-Principal or any of its delegates.

Fund Administrator for IBF, DALI2 and IEF The Manager has applied and obtained the SC’s approval for the appointment of Citibank Berhad as the Fund Administrator to undertake the funds administration services for the foreign portfolios of IBF, DALI2 and IEF. The funds administration services principally involve the valuation of the foreign portfolio of the said Funds and consequently, producing the NAV reports of the said foreign portfolios. The Manager will then use the NAV reports to compute and generate the said Funds’ NAV and pricing. Citibank N.A. established a branch in Kuala Lumpur on 26 August 1959. Subsequently, in compliance with local regulatory requirements, Citibank Berhad was incorporated on 22 April 1994 under the Companies Act 1965 and the business of Citibank N.A., Malaysia was transferred to Citibank Berhad. Citibank Berhad operates as a commercial bank licensed under the Banking and Financial Institutions Act 1989. Citigroup is primarily involved in four core business groups – Global Corporate and Investment Bank (“GCIB”), Global Consumer Group, Global Investment Management and Private Banking Group, and Citigroup International. Securities Services is one of the three core products within Global Transaction Services, which is one of the five core products within GCIB. One of the products Securities Services is responsible for is Funds Administration. Securities Services presently services more than 2,500 client groups worldwide, including fund managers, pension funds, mutual funds, the public sector, central banks, corporations, broker-dealers, and custodian banks.

127

The Investment Managers

CIMB-Principal Asset Management (S) Pte Ltd The Manager has appointed CIMB-Principal Asset Management (S) Pte Ltd (“CIMB-Principal (S)”) as the Investment Manager for the investment foreign portion of CIMB Islamic Asia Pacific Equity Fund, CIMB Islamic DALI Equity Fund, CIMB Islamic Equity Fund and CIMB Islamic Balanced Fund and was granted the discretion to manage, realise, invest, reinvest or howsoever deal with the respective portion of these Funds allocated to foreign investments in accordance with the investment objectives of each of these Funds. The Investment Manager’s discretionary authority over the foreign investments of these Funds is subject to the Guidelines, the CMSA and the internal policies and procedures. In addition, CIMB-Principal (S) has been appointed as the Investment Manager for the CIMB Islamic Greater China Equity Fund, which granted it with the discretion to manage, realize, invest, reinvest or howsoever deal with this Fund in accordance with the investment objective of this Fund. The Investment Manager’s discretionary authority over the investments of the Fund is subject to the Guidelines, the CMSA and the internal policies and procedures. CIMB-Principal shall be responsible for the review, monitoring and oversight of CIMB-Principal (S) in the performance of its duties and obligations in respect of these Funds. CIMB-Principal (S) was incorporated in Singapore on 18 May 2006. The company is a wholly-owned subsidiary of CIMB-Principal Asset Management Berhad in Malaysia. CIMB-Principal (S) is an international asset management company established in Singapore offering both Islamic and conventional fund management services. The company manages regional investment activities for the CIMB-Principal Asset Management group of companies. CIMB-Principal (S) is a licensed fund manager under the Monetary Authority of Singapore. As at LPD, CIMB-Principal (S) has seven (7) staff including four (4) fund managers and one (1) investment analyst. The company is the fund manager for CIMB FTSE ASEAN 40 ETF and several other discretionary accounts and has total assets under management of about RM523.67 million as at LPD. Board of directors of CIMB-Principal Asset Management (S) Pte Ltd

John Campbell Tupling - Director

Datuk Noripah Kamso - Director

Tang Chee Kin - Director

Goh Zee Wei Ken - Director Key management staff of CIMB-Principal Asset Management (S) Pte Ltd Ken Goh – Chief Executive Officer / Head, International Investment Mr Goh is the designated person responsible for the investment management of the foreign investments of these Funds. He joined CIMB-Principal Asset Management (S) Pte. Ltd. in January 2007 as CEO/Director and Head, International Investment. Prior to joining CIMB-Principal, Mr Goh was Director of Investment and served as an Executive Director on the management team at APS Asset Management. From June 2004 to February 2005, He was Head of Investment Advisory, Asia for MeesPierson. Mr Goh has also served as Chief Investment Officer, Singapore for Allianz Dresdner Asset Management as well as Executive Director of Phillip Capital Management during its start-up phase. From 1994 to 2000, Mr Goh served as an Investment Manager with the GIC (Government of Singapore Investment Corp). Mr Goh graduated from the National University of Singapore as Bachelor of Business Administration with a 1st Class Honors. He is a Chartered Financial Analyst (CFA) Charterholder since 1997. Christopher Leow – Vice President, International Investment Mr Leow joined CIMB-Principal in December 2003 and was transferred to CIMB-Principal (S) on 2 May 2007. He brings with him 7 years of experience in financial research and 10 years in fund management. He obtained his fund manager’s representative’s license in January 1999 and holds a Bachelor of Commerce in Accounting and Finance (Hons) from the University of Western Australia. He is also a Chartered Financial Analyst charterholder and Certified Financial Planner. He obtained his Capital Markets Services Representative License from the Monetary Authority of Singapore in September 2007. Neo Wei Chiat – Compliance Manager Mr Neo joined CIMB-Principal Asset Management (S) Pte Ltd on 4 August 2008, and has 7.5 years of compliance experience in the financial industry in Singapore, as well as 2 years experience as an auditor. He holds a Bachelor of Accountancy from the Nanyang Technological University in Singapore. Key person responsible for investment management for foreign investments of the CIMB Islamic Asia Pacific Equity Fund, CIMB Islamic DALI Equity Fund, CIMB Islamic Equity Fund and CIMB Islamic Balanced Fund: Christopher Leow – Fund Manager Mr Leow’s profile is disclosed above.

128

Key person responsible for investment management of the CIMB Islamic Greater China Equity Fund. Steven Li – Manager, International Investment Mr Li covers Greater China equities and technology sector at CIMB-Principal Asset Management (S) Pte Ltd. Prior to joining CIMB-Principal (S), Mr Li was the Senior Risk Control Analyst with China Aviation Oil as well as Market Risk Analyst with Schroders. He has also held the position of Associate Scientist for four years at the Department of Math, National University of Singapore. Mr Li started his career as a Project Leader with the Sanmina-SCI, Asia Center of Singapore from 2000 to 2002. Mr Li holds MBA in Banking & Finance from Nanyang Business School of Singapore and Master of Electronics Engineering, M.E, from the National University of Singapore. He graduated from Tsinghua University of China with B.E.

129

Principal Global Investors, LLC

The investment management function of the CIMB Islamic Global Emerging Markets Equity Fund and the CIMB Islamic Global Equity Fund has been delegated to Principal Global Investors, LLC which granted it with the discretion to manage, realise, invest, reinvest or howsoever deal with these Funds in accordance with the investment objectives of the Funds. The Investment Manager’s discretionary authorities over the investments of these Funds are subject to the SC Guidelines, the CMSA and the internal policies and procedures. CIMB-Principal shall be responsible for the review, monitoring and oversight of Principal Global Investors, LLC in the performance of its duties and obligations in respect of this Fund. Principal Global Investors, LLC is the flagship company of Principal Global Investors, the global asset management group of Principal Financial Group. Principal Global Investors is a diversified asset management organization owned by the U.S – based Principal Financial Group, Inc. Bankers Life Association, now known as the Principal Financial Group was founded in 1879 and began managing assets five decades ago. Principal Global Investors has expertise in equities, fixed income and real estate investments, as well as specialized overlay and advisory services. As at 31 March 2011, it manages USD235.3 billion in assets primarily for retirement plans and other institutional clients.1 Principal Global Investors has asset management operations in the United States, Europe, Australia, Singapore, Hong Kong SAR and Japan. Principal Global Investors focuses on delivering consistently competitive investment performance and superior service on behalf of its clients. As at 31 March 2011, the firm’s capable team of 1,126 employees – including 435 investment professionals – works within a collaborative environment from offices around the world. Its global reach provides an information advantage in researching and managing investment portfolios. At the same time, the firm serves clients on a personalized basis and tailors their capabilities to specific client objectives and investment goals. Principal Global Investors offers investment management services to both institutional and retail clients. As at 31 March 2011, Principal Global Investors manages a series of umbrella unit trusts consisting of 11 funds under the laws of Ireland with assets totalling USD858.6 million. The funds are domiciled in Ireland and operate within the UCITS (Undertaking for Collective Investment in Transferable Securities) regulatory regime. Of the firm’s total 718 client accounts, 264 accounts, or over USD108.8 billion in institutional and retail assets, are subadvised,1 Key persons responsible for investment management of the IGEF Mustafa Sagun, Ph.D., CFA – Chief Investment Officer Mustafa is chief investment officer for the equities group of Principal Global Investors. He is responsible for overseeing portfolio management and research for all international, domestic and global equities strategies. Mustafa has been the lead manager for global equity portfolios since 2002. He also serves as a member of the firm’s asset allocation strategy team, which includes responsibility for target-date life cycle and institutional balanced portfolios. He joined the firm in 2000 and has over 17 years of investment and risk management experience. Previously, he was a vice president and analyst for PNC Financial Services Group and an equity derivatives specialist for Salomon Brothers. Mustafa received a Ph.D. in finance and a MA in international economics from the University of South Florida. He received a bachelor's degree in electronics and engineering from Bogazici University of Turkey. Mustafa holds the Chartered Financial Analyst designation. He is a member of the CFA Institute and the CFA Society of Iowa. Mustafa Sagun is co-portfolio manager for the CIMB Islamic Global Equity Fund. Christopher Ibach, CFA – Portfolio Manager Chris is a portfolio manager with Principal Global Investors. Chris is responsible for co-managing the firm’s global equity and Japanese equity portfolios, and oversees the firm’s research and development initiatives supporting all equities strategies. He joined the firm in 2000 as an equities research analyst, specializing in the analysis of international technology companies and became portfolio manager in 2002. Previously, Chris gained six years of related industry experience with Motorola, Inc. Chris received an MBA in finance and a bachelor's degree in electrical engineering from the University of Iowa. Chris holds the Chartered Financial Analyst designation and is a member of the CFA Institute. Chris Ibach is the co-portfolio manager of the CIMB Islamic Global Equity Fund.

Key persons responsible for investment management of the IGEMEF Michael L. Reynal – Portfolio Manager Michael is a portfolio manager for Principal Global Investors. He leads the emerging markets team, encompassing markets in Asia, Latin America, Eastern Europe, the Middle East and Africa. He oversees both diversified emerging markets portfolios and specialized regional Asian equity strategies. Michael is also active in company research, with an emphasis on health care globally, and consumers and financials in the Latin America/EEMEA region. Before joining the firm in early 2001, Michael was responsible

As of 31 March 2011, Principal Global Investors is the asset management arm of the Principal Financial Group ® (The Principal ®)¹ and includes the asset management operations of the following subsidiaries of The Principal: Principal Global Investors, LLC; Principal Real Estate Investors, LLC; Spectrum Asset Management, Inc.; Post Advisory Group, LLC; Columbus Circle Investors; Edge Asset Management, Inc.; Morley Financial Services Inc.; Principal Global Investors (Europe) Limited; Principal Global Investors (Singapore) Ltd.; Principal Global Investors (Australia) Ltd.; Principal Global Investors (Japan) Ltd.; Principal Global Investors (Hong Kong) Ltd.; CIMB-Principal Islamic Asset Management Sdn. Bhd.; and the majority owned affiliates of Principal International, Inc. Assets under management includes assets managed by investment professionals of Principal Global Investors under dual employee arrangements with other subsidiaries of The Principal. ¹"The Principal Financial Group" and "The Principal" are registered trademarks of Principal Financial Services, Inc., a member of the Principal Financial Group.

130

for equity investments in Latin America, the Mediterranean and the Balkans while at Wafra Investment Advisory Group, Inc. in New York. Michael also spent four years with Paribas Capital Markets in New York in international equities and three years with Barclays de Zoete Wedd in London focusing on Latin American equities. He received an MBA from the Amos Tuck School at Dartmouth College, an MA in history from Christ’s College at the University of Cambridge and a bachelor's degree in history from Middlebury College. Michael Reynal is co-portfolio manager for the CIMB Islamic Global Emerging Markets Equity Fund. Mihail Dobrinov, CFA – Portfolio Manager Mihail is a portfolio manager for Principal Global Investors. He serves as co-manager for diversified emerging markets portfolios. Mihail’s analytical responsibilities are focused on companies in the industrials sector globally, and the telecommunications and utilities sectors in the Latin America/EEMEA regions. He has had experience with the materials and energy sectors as well. He joined the firm as an international and emerging market debt and currency specialist in 1995 and joined the equities team in 2002. Mihail received an MBA in finance from the University of Iowa and a law degree from Sofia University, Bulgaria. He has earned the right to use the Chartered Financial Analyst designation and is a member of the CFA Institute. (Mihail does not provide legal services on behalf of any of the member companies of the Principal Financial Group.) Mihail Dobrinov is the co-portfolio manager of the CIMB Islamic Global Emerging Markets Equity Fund. Michael Ade, CFA – Portfolio Manager Mike is a portfolio manager for Principal Global Investors. He serves as a co-manager for diversified emerging markets and Asian equity strategies. Based in Singapore, his analytical responsibilities are focused on the Asian consumers sector. Mike joined the firm in 2001 and became a co-portfolio manager in 2007. He received a bachelor’s degree in finance from the University of Wisconsin. Mike has earned the right to use the Chartered Financial Analyst designation and is a member of the CFA Institute. Michael Ade is the co-portfolio manager of the CIMB Islamic Global Emerging Markets Equity Fund.

131

Schroder Investment Management (Singapore) Ltd Schroder Investment Management (Singapore) Ltd (“SIMSL”) has been appointed as the Investment Manager for the CIMB Islamic Global Commodities Equity Fund, which granted it with the discretion to manage, realize, invest, reinvest or howsoever deal with this Fund in accordance with the investment objective of this Fund. The Investment Manager’s discretionary authority over the investments of this Fund is subject to the SC Guidelines, the CMSA and the internal policies and procedures. The Investment Manager shall be responsible for the review, monitoring and oversight of SIMSL in the performance of its duties and obligations in respect of this Fund. SIMSL was incorporated in Singapore on 29 February 1992. The company is a member of the Schroder group (“Schroders”). Schroders has been managing collective investment schemes and discretionary funds in Singapore since the 1970s. Schroders is a leading global asset management company, whose history dates back 200 years. The group’s holding company, Schroders Plc is and has been listed on the London Stock Exchange since 1959. SIMSL is a licensed fund manager under the Monetary Authority of Singapore. As at 31 December 2010, SIMSL has 203 staff including 5 fund managers and 13 investment analysts. SIMSL’s total assets under management, as of 31 December 2010, are S$27.55 billion. Directors of Schroder Investment Management (Singapore) Ltd

Susan Soh Shin Yann - Managing Director

Tham Ee Mern Lilian - Director

Tan Jui Tong - Director

Gwee Siew Ping - Director Key person responsible for investment management of the Fund Sam Catalano – Global and International Equities, Global Sector Specialist Sam Catalano is the designated fund manager responsible for the investment management of the CIMB Islamic Global Commodities Equity Fund. He joined Schroders in 2010. He is currently the Global Sector Specialist with responsibility for the materials sector and fund manager for the Global Resources Equity strategy, based in London. He joined Schroders from Macquarie Bank, where he worked from 2007 as Head of European Metals & Mining Research. Prior to this, he worked for Morgan Stanley from 2006 as a metals & mining equity analyst. He was an Australian metals & mining analyst for Macquarie Bank from 2003. Before this, he was a consulting mining engineer for MineConsult from 2003 and a mining engineer for MIM Holdings from 2000. Sam graduated with a Certificate in Commerce (Finance) from the University of Sydney and a Bachelor of Engineering (Mining), from the University of Queensland.

132

Shariah Adviser of the Funds

CIMB Islamic Bank Berhad CIMB Islamic Bank Berhad ("CIMB Islamic") is the global Islamic banking and finance franchise of CIMB Group Sdn Bhd ("CIMB Group") as a result of the merger with Commerce Tijari Bank Berhad on 6 June 2006. Currently, CIMB Islamic provides comprehensive and innovative Shariah-compliant financial products and services to satisfy the needs of individual, small and medium scale enterprises and large institutional customers in investment banking, consumer banking, asset management, private banking and takaful. Its retail banking is co-located at CIMB Bank Berhad's 325 branches nationwide. CIMB Islamic provides services on various Islamic banking and finance products to ensure compliance with applicable Shariah principles as well as the relevant resolutions and rulings made by the Shariah advisory councils of the regulatory bodies and CIMB Islamic's in-house Shariah committee (“Shariah Committee"). CIMB Islamic's achievements have been duly recognised by various local and international houses and its recent accolades include, amongst others, Best Overall Islamic Bank for 2010, Most Innovative Islamic Bank and Best Islamic Bank in Malaysia from the Islamic Finance News Awards : Best Banks Poll 2010, Best Islamic Fund Manager 2010 from Islamic Finance News Awards : Best Service Providers Poll 2010, Best Islamic Bank in Asia 2009 from Euromoney Islamic Finance Awards 2009, Best Islamic Bank in Malaysia and Asia for 2009 from Global Finance, Islamic Financial Institutions Award 2008-Asia Region from ACQ Magazine, Best Islamic Finance Bank for Malaysia and Asia by Global Finance, Best Sukuk House for 2008 from Euromoney, the Islamic Investment Banking House of the Year for 2007 and 2006 from The Banker, Best Islamic Fund House for 2009, 2008, 2007 and 2006 from Asia Asset Management, Best Islamic Bank in Asia for 2006 and 2005 from Euromoney and outstanding Islamic Financial Institution for 2005 from the International Institute of Islamic Finance. CIMB Islamic has been appointed as the Shariah Adviser for the Funds. In line with the SC Guidelines, the roles of the Shariah Adviser are: � to advise on all aspects of unit trust and fund management business in accordance with Shariah principles; � to provide Shariah expertise and guidance in all matters, particularly on the Fund’s deed and information memorandum, fund

structure, investments and other operational matters; � to ensure that the Fund is managed and operated in accordance with Shariah principles, relevant SC regulations and/or

standards, including resolutions issued by the Shariah Advisory Council (“SAC”) of the SC; � to review the Fund’s compliance report and investment transaction report to ensure that the Fund’s investments are in line with

Shariah principles; and � to prepare a report to be included in the Fund’s annual and interim reports stating its opinion whether the Fund has been

operated and managed in accordance with the Shariah principles for the financial period concerned.

As at LPD, the committee acts as Shariah Adviser for a total of 35 funds. The Shariah Adviser meets bi-monthly every quarter to address Shariah advisory matters pertaining to the Funds, if any and review the Funds’ investment to ensure compliance with Shariah principles. Semi-annual review is conducted to ensure the Fund’s investment is in compliance with the Shariah. The designated person responsible for the Funds is Abdul Ghani Endut. In addition, CIMB Islamic Bank Berhad is backed by its own respective Shariah committee comprises of the following members:

� Prof. Dr. Mohammad Hashim Kamali � Dr. Haji Mohd Nai’m Bin Haji Mokhtar � Assc. Prof. Dr. Shafaai Bin Musa � Sheikh Nedham Yaqoobi � Dr. Yousef Abdullah Al Shubaily � Prof. Dr. Noor Inayah Yaakub

Name: Prof. Dr. Mohammad Hashim Kamali Dr. Haji Mohd Nai’m Bin Haji Mokhtar

Position: Chairman & CEO, International Institute of Advanced Islamic Studies.

Chief Assistant Director, Family Support Division, Malaysian Shariah Judiciary Department, Prime Minister’s Department, Malaysia.

Experience:

He is the Chairman and CEO of the International Institute of Advanced Islamic Studies and the member of Securities Commission’s Shariah Advisory Council for the period from July 2010 to June 2012. He has been teaching Islamic law and jurisprudence since 1985 and a former Professor of International Institute of Islamic Thought and Civilisation (ISTAC), and Ahmad Ibrahim Kulliyyah of Laws, International Islamic University, Malaysia (IIUM). He is also a renowned writer in the area of Islamic law and jurisprudence and has written many books and articles on the subject.

Currently, serving as a Chief Assistant Director in the Malaysian Shariah Judiciary Department of the Prime Minister’s Department. Previously, he served as a lecturer at Ahmad Ibrahim Kuliyyah of Laws, International Islamic University, Malaysia from 1990 – 1997. He then joined Messrs Zulkifli Yong, Azmi & Co as Shariah lawyer before being appointed as Syariah Judge in 1998. He was also assigned as a research officer at Malaysian Shariah Judiciary Department, Prime Minister’s Department from 2003 – 2004 as well as Shariah Subordinate Court Judge for Federal Territory from 2007 – 2008 and Shariah Prosecutor, Federal Territory in 2008.

Qualifications:

He holds a 1st Class, BA Honours degree in Law and Political Science from Kabul University, Afghanistan, LLM degree from the London School of Economics, England and a PhD in Islamic Law from the School of Oriental & African Studies, University of London, England.

He received his LLB degree from International Islamic University, Malaysia (IIUM), LLM from University of London, United Kingdom and PhD in Shariah from National University of Malaysia. He also holds Diploma in Shariah Law & Practice and Diploma in Administration & Islamic Judiciary both from Islamic International

133

University, Malaysia (IIUM).

Name: Assc Prof Dr. Shafaai Bin Musa Sheikh Nedham Yaqoobi

Position: Associate Professor, Ahmad Ibrahim Kuliyyah of Laws, International Islamic, University, Malaysia (“IIUM”) and Chief Executive Officer, International Islamic College and Executive Director, IIUM, Centre of Continuing Education Sdn. Bhd.

Independent Shariah Advisor

Experience:

He has more than 10 years of experience in teaching Islamic law and jurisprudence and wrote several researches and articles. He served as Shariah adviser for Department of Islamic Development Malaysia in 2005.

A Bahrain national and is a renowned Shariah scholar. He sits on various Shariah boards of Islamic banking and financial institutions globally including the Dow Jones Islamic Market Indexes (DJIM), the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) and the International Islamic Financial Market (IIFM). He is the author of several articles and publications on Islamic finance and other sciences, in English and Arabic.

Qualifications:

He received his Degree in Shariah from University of Al-Azhar, Egypt, Master in Comparative Laws from IIUM and Ph.D. from Glasgow Caledonian University, United Kingdom.

He was educated in the classical Shariah in his native Bahrain and in Makkah under the guidance of eminent scholars, including Sheikh Abdulla al-Farisi, Sheikh Yusuf al-Siddiqi, Sheikh Muhammed Saleh al-Abbasi, Sheikh Muhhamed Yasin al Fadani (Makkah), Shaikh Habib-ur-Rahman A. Zaini (India), Sheikh Abdulla bin Al-Siddiq Al-Ghumar (Morocco), and others. He has a BA in Economics and Comparative Religion and M.SC. in Finance from McGill University, Montreal, Canada.

Name: Dr. Yousef Abdullah Al Shubaily Abdul Ghani Endut

Position: Lecturer, Comparative Jurisprudence Department, High Institute of Judiciary, Imam Muhammad Bin Saud Islamic University, Kingdom of Saudi Arabia

Associate Director, Head of Shariah Department, Group, Islamic Banking Division, CIMB Group

Experience:

A citizen of the Kingdom of Saudi Arabia, Dr. Yousef is currently attached as a Lecturer at the Comparative Jurisprudence Department, High Institute of Judiciary, Imam Muhammad Bin Saud Islamic University in the Kingdom. He also serves as a Co-operating professor for the American Open University. Beyond his academic career, Dr. Yousef has an extensive experience in serving various Shariah boards of a number of banks and financial institutions in the Kingdom of Saudi Arabia, Bahrain, Kuwait, UAE, Qatar, United States of America and Britain. He also holds advisory functions in numerous religious and charitable organisations within and outside the Kingdom. Dr. Yousef has written many books, academic papers and articles on Islamic jurisprudence and commercial law and has actively participated in numerous seminars and conventions in related areas. He also participates in religious and economic programs on television and radio broadcasts in the Kingdom and abroad. He is a permanent guest for various television programs including the programs aired by Al Majd, MBC and CNBC channels.

Abdul Ghani joined CIMB in January 2005 as Manager, Shariah Advisory Unit and the Secretary of CIMB Islamic Shariah Committee. Previously, he was attached to the Shariah Department of the first Islamic bank in Malaysia for more than ten years. There, he was the Head of the Shariah Department and the Secretary of the Shariah Supervisory Council. He was actively involved in Shariah advisory activities of the Bank and other external parties, in Retail, Commercial, Corporate Banking and Debt Capital Market. He was also involved in the structuring of Islamic Venture Capital and Shariah advisor to Islamic Unit Trusts. He leads the Shariah Advisory and is responsible to provide the Shariah advisory for all types of Islamic products both to the CIMB Group of companies and external parties in asset & fund management, investment & corporate banking, retail & business banking, treasury & structured products, takaful, private equity and etc. He is currently a member of the Shariah Governance Working Group for the Islamic Financial Services Board (IFSB), an international standard-setting organisation that promotes and enhances the soundness and stability of the Islamic financial services industry by issuing global prudential standards and guiding principles for the industry, broadly defined to include banking, capital markets, takaful and insurance sectors.

Qualifications:

He received his Bachelor Degree from the Faculty of Shariah and Fundamentals of Islam and a Masters Degree from the Department of Comparative Jurisprudence at Muhammad bin Saud Islamic University and Ph.D in Islamic Jurisprudence from Muhammad bin Saud Islamic University.

He holds a Bachelor of Art (Hons) in Business Studies from the University of East London, United Kingdom and a Bachelor of Art (Hons) in Islamic Jurisprudence and Legislation from the University of Jordan.

Name: Prof. Dr. Noor Inayah Yaakub

Position:

Professor, Faculty of Economics and Management, Universiti Kebangsaan Malaysia (UKM) and Principal Fellow of Institute of West Asian Studies, Malaysia, UKM.

134

Experience:

Prof. Dr. Noor Inayah is a Malaysian, currently attached as a Professor at Faculty of Economics and Management, Universiti Kebangsaan Malaysia (UKM) and Principal Fellow of Institute of West Asian Studies, UKM. She was an Advocate & Solicitor in the High Court of Malaya and a Syarie Lawyer with Messrs. Abraham & Ooi and Co. from 1996-1997 before joining UKM as a lecturer in 1998. She has more than 15 years of experience in teaching Islamic Law, Islamic and Conventional Banking Law, Takaful and Insurance Law, Equity & Trust Law and Business Law and Ethics. She has produced several academic research papers and articles mainly on the subject of Islamic and conventional banking law and takaful and insurance law of which some were presented in Islamic banking and finance proceedings and conferences and published in Malaysian and International high refereed / impact journals.

Qualifications:

She received her Bachelor of Shariah Law (Hons) and Bachelor of Law (Hons) from International Islamic University, Malaysia, LLM (Master of Comparative Civil & Banking Law) from University of Bristol, United Kingdom and Ph.D (Comparative Civil & Islamic Banking Law of Guarantee) from the University of Manchester, United Kingdom.

135

The Trustees

AmanahRaya Trustees Berhad AmanahRaya Trustees Berhad (“ART”) is the trustee of the CIMB Islamic Equity Aggressive Fund, CIMB Islamic Equity Fund and CIMB Islamic Sukuk Fund. ART was incorporated under the Companies Act 1965 on 23 March 2007 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 45 years in trustee business. ART has been registered and approved by the SC to act as trustee to unit trust funds and has 152 unit trust funds under its trusteeship. As at LPD, ART has 78 staff (55 executives and 23 non-executives). ART has an authorised capital of RM5,000,000. Its issued and paid-up share capital is RM2,000,000 and RM1,000,000 respectively. The shareholders of ART are:

% of equity

Amanah Raya Berhad (344986-V) 20

Amanah Raya Nominees (Tempatan) Sdn Bhd (434217-U) 20

Amanah Raya Capital Sdn Bhd (549057-K) 20

AmanahRaya Capital Group Sdn Bhd (760289-U) 20

AmanahRaya Modal Sdn Bhd (760322-X) 10

Amanah Raya Nominees (Asing) Sdn Bhd (684546-P) 10

ART’s financial performance The following is a summary of the past performance of ART based on audited financial statements for financial year ended 31 December since its incorporation on 23 March 2007:

Year Ended 31 December

2010 2009 2008

(RM’000) (RM’000) (RM’000)

Paid-up capital 1,000 1,000 1,000

Shareholders’ Funds 3,214 3,624 5,999

Turnover 24,847 20,024 17,282

Pre-tax profit 18,265 14,340 11,783

After tax profit / loss 13,590 10,625 8,597

Board of Directors and CEO of ART

Datuk Idrus Bin Harun – Chairman Hajjah Habsah Binti Bakar – Director / Chief Executive Officer Dato’ Ahmad Rodzi Bin Pawanteh – Director Datin Aminah Binti Pit Abd Raman – Director Puan Alina Binti Hashim – Director Tuan Haji Ab. Gani Bin Haron – Director Dato’ Haji Ahmad Kamal Bin Abdullah Al-Yafii – Director Encik Zainudin Bin Hj. Suhaimi – alternate to Hajjah Habsah Binti Bakar ART’s Delegate

ART has delegated its custodian function for the foreign investments of the IEF to Citibank N.A, Singapore Branch. Citibank N.A. in Singapore began providing Securities and Funds Services in the mid-1970’s and a fully operational global custody product was launched in the early 1990’s. To-date, the business claims a global client base of premier banks, fund managers, broker dealers and insurance companies. Currently, Citigroup Singapore has a staff force of approximately 8,500 employees. The roles and duties of Citibank N.A, Singapore as the trustee’s delegate are as follows: � To act as sub-custodian for the selected cross-border investment of the fund(s) including the opening of cash and custody

accounts and to hold in safekeeping the assets of the fund(s), such as equities and bonds. � To act as paying agent for selected cross-border investments which include trade settlement and fund transfer services. � To provide corporate action information or entitlements arising from the above underlying assets and to provide regular

reporting on the activities of the invested portfolios.

136

AmTrustee Berhad AmTrustee Berhad (“AmTB”) is the trustee for CIMB Islamic DALI Equity Growth Fund, CIMB Islamic DALI Equity Theme Fund and CIMB Islamic Money Market Fund. AmTB was incorporated on 28 July 1987 and commenced its operations in March 1992, with its registered office at 22nd Floor, Bangunan AmBank Group, 55, Jalan Raja Chulan, 50200 Kuala Lumpur. AmTB has an authorised share capital of RM1,000,000 and a paid-up share capital of RM500,000. The shareholders funds stood at RM6,580,115 with a pre-tax profit of RM1,165,721for the year ended 31 March 2010. AmTB has been involved in the unit trust industry as a trustee since 1997. As at LPD, AmTB employs 29 staff comprising 23 executives and 6 non-executives and currently has 25 unit trusts funds (including 3 real estate investment trust funds) under its trusteeship. The shareholders and percentage of shareholding:

Shareholders Shareholding (%)

AmInvestment Bank Berhad 20

AmBank (M) Berhad 20

Arab-Malaysian Credit Berhad 20

AmSecurities Holding Sdn Bhd 20

Mekar Angkasa Sdn Bhd 20 Board of Directors and CEO of AmTB: Pushparani d/o A. Moothathamby (Chairman and Non-Independent Director) Shaharuddin bin Hassan (Non-Independent Director) Tuan Hj. Mohamad Sabirin Bin Hj A.Rahman (Non-Independent Director) Datuk Haji Mohd Idris Bin Mohd Isa (Independent Director) Dato’ Ng Mann Cheong (Independent Director) Tan Kok Cheeng (Chief Executive Officer) AmTB’s financial highlights are as follows:

Year Ended 31 March

2010 2009 2008

(RM) (RM) (RM)

Paid-up capital 500,000 500,000 500,000

Shareholders’ Funds 6,580,115 5,732,058 5,405,033

Turnover 4,866,141 4,342,967 4,300,916

Pre-tax profit 1,165,721 444,644 413,450

After-tax profit 848,057 327,025 348,159

Delegation of AmTB Custodial Functions (for DALI) AmTB has delegated its custodian and its back office operation of quoted and unquoted local investments of the Fund to AmInvestment Bank Berhad (“AIBB”). The assets of the local Fund are held through AIBB’s nominee company, AMSEC Nominees (Tempatan) Sdn Bhd (“AMSEC(T)SB”). AMSEC(T)SB is a wholly owned subsidiary of AIBB. It was set up to assist investment advisors, managers of large portfolios, lending banks and international custodians in the movement and management of cash and securities and providing clients with real-time notification of settlements and reports. AmTB retains control of the assets of the Fund at all times. Delegation of AmTB Custodial Functions (for DALI3 & IMMF) AmTB has appointed CIMB Group Nominees (Tempatan) Sdn Bhd as the custodian of the local assets of the Fund. CIMB Group Nominees (Tempatan) Sdn Bhd is a wholly owned subsidiary of CIMB Bank Berhad and assists investment advisors/clients, managers of domestic and international portfolios, lending banks and international custodians in the movement and management of cash and securities. The custodian's custody and clearing services include settlement processing and safekeeping, corporate related services including cash and security reporting, income collection and corporate events processing. All investments are automatically registered in the name of the Fund. The custodian acts only in accordance with instructions from the Trustee.

137

Deutsche Trustees Malaysia Berhad Deutsche Trustees Malaysia Berhad (“DTMB”) (Company No. 763590-H) is the trustee for CIMB Islamic Global Emerging Markets Equity Fund, CIMB Islamic Global Equity Fund and CIMB Islamic Global Commodities Equity Fund. DTMB was incorporated in Malaysia on 22 February 2007 and commenced business in May 2007. The Company is registered as a trust company under the Trust Companies Act 1949, with its business address at Level 20, Menara IMC, 8 Jalan Sultan Ismail, 50250 Kuala Lumpur. DTMB is a member of Deutsche Bank Group, a leading global investment bank with a strong and profitable private clients franchise. With more than 100,000 employees serving clients in over 70 countries, Deutsche Bank offers unparalleled financial services throughout the world. DTMB’s financial position


2010 2009 2008

(RM) (RM) (RM)

Paid-up share capital 3,050,000 3,050,000 2,400,000


Revenue 1,856,706 1,131,475 857,236

Profit / loss before tax 616,827 (186,041) (634,116)

Profit / loss after tax 616,827 (186,041) (626,587)

Board of Directors Jacqueline William (Chief Executive Officer) Mohd Ridzal Bin Mohd Sheriff Chang Wai Kah Janet Choi Jalalullail Othman* * independent director Experience in trustee business DTMB is part of Deutsche Bank’s Trust & Securities Services (“TSS”), which offers fund administration, trustee services, securities custody, and includes specialist corporate services offices in a number of tax-efficient locations. As such, DTMB has access to the expertise of specialists with extensive knowledge of fund and trustee services, coupled with affiliation with one of the world’s largest financial institutions. As at LPD, DTMB is the trustee for 47 unit trust funds, 23 wholesale funds and 3 exchange-traded fund. DTMB has suitably qualified and experienced staff in the administration of unit trust funds and have sound knowledge of all relevant laws, codes, rules and best practices governing the Malaysian unit trust industry. As at LPD, DTMB has 9 staff and all are executives. DTMB’s trustee services are supported by Deutsche Bank (Malaysia) Berhad (“DBMB”), a subsidiary of Deutsche Bank Group for various functions, including but not limited to Financial Control and Internal Audit. Duties and responsibilities of the Trustee DTMB’s main functions are to act as trustee and custodian of the assets of the Fund and to safeguard the interests of Unit holders of the Fund. In performing these functions, the Trustee has to exercise due care and vigilance and is required to act in accordance with the relevant provisions of the Deed, the CMSA and all relevant laws. Trustee’s statement of responsibility The Trustee has given its willingness to assume the position as trustee of the Fund and is willing to assume all its obligations in accordance with the Deed, SC Guidelines and all relevant laws. DTMB’s delegate The Trustee has appointed Deutsche Bank (Malaysia) Berhad (“DBMB”) as the custodian of the assets of the Fund. In its capacity as the appointed custodian, DBMB’s roles encompass safekeeping of assets of the Fund; trade settlement management; corporate actions notification and processing; securities holding and cash flow reporting; and income collection and processing. DBMB is a wholly-owned subsidiary of Deutsche Bank AG, one of the world's largest banks. DBMB offers its clients access to a growing domestic custody network that covers over 30 markets globally and a unique combination of local expertise backed by the resources of a leading global bank. With a worldwide team of custody experts, leading-edge technology and a track record of consistent product innovation, DBMB is committed to delivering exceptional and efficient domestic custody services to its clients. All investments are automatically registered in the name of the Fund. DBMB shall act only in accordance with instructions from the Trustee.

138

Disclosure on related-party transactions/conflict of interests The Fund may invest in products and services offered by Deutsche Bank AG and any of its group companies (e.g. money market placements, structured products, etc). No assurance is given that such related-party transactions will not occur. In the event any such related-party transactions are proposed, DTMB will rely on the management company to ensure any related-party transactions, dealings, investments and appointments are on terms which are the best that are reasonably available for or to the Fund and are on an arm’s length basis as if between independent parties. While DTMB has internal policies intended to prevent or manage conflicts of interests, no assurance is given that their application will necessarily prevent or mitigate conflicts of interests. DTMB’s commitment to act in the best interests of the Unit holders of the Fund does not preclude the possibility of related-party transactions or conflicts.

139

HSBC (Malaysia) Trustee Berhad HSBC (Malaysia) Trustee Berhad (“HSBCT”) is the trustee for CIMB Islamic Enhanced Sukuk Fund, CIMB Islamic Asia Pacific Equity Fund, CIMB Islamic Kausar Lifecycle Funds, CIMB Islamic Greater China Equity Fund and CIMB Islamic Deposit Fund. HSBCT is a company incorporated in Malaysia since 1937 and registered as a trust company under the Trust Companies Act 1949, with its registered address at Suite 901, 9th Floor, Wisma Hamzah-Kwong Hing, No.1 Lebuh Ampang, 50100 Kuala Lumpur. The Trustee is a member of the HSBC Holdings Plc. group of companies and forms part of the global network of trust companies within HSBC Holdings Plc. HSBCT’s financial information The Trustee has a paid-up capital of RM500,000.00. As at 31 December 2010, its shareholders’ funds totaled RM23.33 million and it achieved a profit before tax of RM11.25 million. The following is a summary of the past performance of the Trustee based on audited accounts for the last three (3) years:


2010 2009 2008

(RM) (RM) (RM)

Paid-up capital 500,000 500,000 500,000


Turnover 20,989,037 18,006,590 17,843,570

Profit before Tax 11,253,763 10,930,880 10,470,535

Profit after Tax 8,314,528 8,200,407 7,754,577

Board of Directors of HSBCT Mr Jonathan William Addis Ms Lim Liang Hua (Managing Director) Dato’ Ranita Mohd Hussein Ms Zainon Baba Mr Alastair E Murray Ms On Bee Heong Ms Hew Su Chan (Alternate to Ms On Bee Heong) Experience in Trustee Business Since 1993, the Trustee has acquired experience in the administration of unit trusts and as at LPD, HSBCT is the Trustee for 175 unit trust funds (including Exchange Traded Funds and Wholesale Funds). As at LPD, the Trustee has a workforce of 54 employees consisting of 39 executives and 15 non-executives. A good number of the staff has been with the Trustee for many years. This element of continuity reflects an intrinsic characteristic of trust services. The Trustee also believes in building team and talents by recruiting new members with relevant experiences to replace the long serving retired colleagues. Each client’s account is under the supervision of a trust officer who is able to focus his personal attention on the administration of the account and reports directly to his manager. The Trustee also has a Compliance Section whose responsibilities is to ensure that the Trustee’s business is carried on in accordance with all relevant laws, codes, rules and standards of good market practice. HSBCT’s Delegate The Trustee has appointed The Hongkong And Shanghai Banking Corporation Ltd as custodian of the quoted and unquoted local investments of the Fund. The assets of the Fund are held through their nominee company, HSBC Nominees (Tempatan) Sdn Bhd. If and when the Fund should invest overseas, HSBC Institutional Trust Services (Asia) Limited will be appointed as the custodian of the foreign assets of the Fund. Both The Hongkong And Shanghai Banking Corporation Ltd and HSBC Institutional Trust Services (Asia) Limited are wholly owned subsidiaries of HSBC Holdings Plc, the holding company of the HSBC Group. The custodian’s comprehensive custody and clearing services cover traditional settlement processing and safekeeping as well as corporate related services including cash and security reporting, income collection and corporate events processing. All investments are automatically registered into the name of the Fund. The custodian acts only in accordance with instructions from the Trustee. The Trustee is not liable for the acts, omissions or failure of any third party depository including central securities depositories or clearing and/or settlement systems in any circumstances. Duties and Responsibilities of the Trustee The Trustee’s main functions are to act as trustee and custodian of the assets of the Fund and to safeguard the interests of Unit Holders of the Fund. In performing these functions, the Trustee has to exercise all due care, diligence and vigilance and is required to act in accordance with the provisions of the Deed, Capital Markets and Services Act 2007 and the Securities Commission’s Guidelines on Unit Trust Funds. Apart from being the legal owner of the Fund’s assets, the Trustee is also responsible for ensuring that the Manager performs its duties and obligations in accordance with the provisions of the Deed, Capital Markets and Services Act 2007 and the Guidelines. In respect of monies paid by an investor for the application of units, the Trustee’s responsibility arises

140

when the monies are received in the relevant account of the Trustee for the Funds and in respect of redemption, the Trustee’s responsibility is discharged once it has paid the redemption amount to the Manager. Trustee’s Statement of Responsibility The Trustee has given its willingness to assume the position as Trustee of the Fund and all the obligations in accordance with the Deed, all relevant laws and rules of law. The Trustee shall be entitled to be indemnified out of the Fund against all losses, damages or expenses incurred by the Trustee in performing any of its duties or exercising any of its powers under this Deed in relation to the Fund. The right to indemnity shall not extend to loss occasioned by breach of trust, wilful default, negligence, fraud or failure to show the degree of care and diligence required of the Trustee having regard to the provisions of the Deed. Anti-money Laundering and Anti-Terrorism Financing Provisions The Trustee has in place policies and procedures across the HSBC Group, which may exceed local regulations. Subject to any local regulations, the Trustee shall not be liable for any loss resulting from compliance of such policies, except in the case of negligence, wilful default or fraud of the Trustee. Statement of Disclaimer The Trustee is not liable for doing or failing to do any act for the purpose of complying with law, regulation or court orders.

141

Mayban Trustees Berhad Mayban Trustees Berhad (5004-P) (“MTB”) is the Trustee of the CIMB Islamic Balanced Growth Fund with its registered address at 34th Floor, Menara Maybank, 100 Jalan Tun Perak, 50050 Kuala Lumpur. MTB was incorporated on 12 April 1963 and registered as a Trust Company under the Trust Companies Act 1949 on 11 November 1963. It was one of the first local trust companies to provide trustee services with the objective of meeting the financial needs of both individual and corporate clients. MTB has been registered and approved by the SC to act as Trustee to unit trust funds. As at 31 May 2011, MTB has a total of 37 staff, comprising 24 executives and 13 non-executives. MTB’s financial information Summary of MTB’s audited financial figures for financial years ended 30 June:

Year Ended 30 June

2010 2009 2008

(RM’000) (RM’000) (RM’000)

Paid-up capital 500 500 500

Shareholders’ Funds 3,901 8,623 22,113

Turnover 9,115 8,975 9,760

Profit Before Taxation 3,053 7,645 7,958

Profit After Taxation 2,278 5,730 5,916

Board of Directors and CEO of MTB En Zainal Abidin Jamal – Non Independant Director & Chairman Encik Mohd. Hanif bin Suadi – Non Independant Director Dato’ Dr. Tan Tat Wai – Independant Director Experience in trustee business With more than 18 years of experience as Trustee to unit trust funds, MTB has under its stewardship a total of 54 unit trust funds and 3 real estate investment trust/property trust funds. Delegates of MTB MTB has delegated its custodian function to Malayan Banking Berhad. The custodian function is run under Maybank Custody Services (“MCS”), a unit within Malayan Banking Berhad. MCS commenced operations in 1983 and has been appointed as custodian of unit trust funds since 1989. It provides clearing and custody services for Malaysian equity and fixed income securities to domestic and foreign institutional clients. In addition, it offers global custody services to domestic institutions/clients that have foreign investments. MCS has a staff strength of 33 employees, comprising 25 executives and 8 non-executives as at LPD The roles and duties of the trustee’s delegate Maybank Custody Services (“MCS”), a unit within Malayan Banking Berhad, are as follows: � Safekeep, reconcile and maintain assets holdings records of funds in accordance to trustee's instructions; � Act as settlement agent for shares and monies to counterparties in accordance to trustee's instructions; � Act as agents for money market placement where applicable in accordance to trustee's instructions; � Disseminate listed companies' announcements to and follow through for corporate actions instructions from trustee; � Compile, prepare and submit holdings report to trustee and beneficial owners where relevant; and � Other ad-hoc payments for work done for the funds in accordance to trustee's instructions, etc. The custodian acts only accordance with instructions from the Trustee.

142

Universal Trustee (Malaysia) Berhad Universal Trustee (Malaysia) Berhad (17540-D) (“UTMB”) is the trustee of the CIMB Islamic Small Cap Fund, CIMB Islamic DALI Equity Fund and CIMB Islamic Balanced Fund. UTMB was incorporated on 5 March 1974 under the Companies Act, 1965. It has an authorised capital of RM5,000,000 divided into 500,000 ordinary shares of RM10 each of which 100,000 ordinary shares of RM10 each are issued and RM5 called and paid-up. Board of Directors and CEO of UTMB Tan Sri Dato’ IR. Talha Bin Haji Mohamad Hashim Y.A.M. Tunku Dato’ Seri Nadzaruddin Ibni Almarhum Tuanku Ja’afar Azrin Mirzhan Bin Kamaluddin (alternate to Y.A.M. Tunku Dato’ Seri Nadzaruddin Ibni Almarhum Tuanku Ja’afar) Huang Chang Yi Emily Huang Ye (alternate to Huang Chang Yi) Wong Sai Fong Putri Noor Shariza Binti Noordin Omar (alternate to Wong Sai Fong) Mr Liew Kok Wah (Chief Executive Officer cum Company Secretary) UTMB’s financial highlights are as follows:


2010

(Unaudited) 2009 2008

(RM) (RM) (RM)

Paid-up capital 500,000 500,000 500,000


Turnover 3,332,772 3,591,350 4,166,722

Pre-tax profit 996,397 1,037,164 1,256,263

After-tax profit 746,397 801,154 1,007,591

Experience in the trustee business UTMB has more than ten years of experience in the unit trust industry. It has steadily continued to grow over the years and currently employs 31 staff, which comprises 18 executives and 13 non-executives. As at LPD, it has 36 unit trust funds under its trusteeship. UTMB’s Delegate UTMB has appointed Citibank, N.A., Singapore Branch as their delegate for global custody services. Citibank, N.A., Singapore Branch was set up in 1902 and is today the largest foreign bank operating in the territory. With a staff force of about 8,500, Citibank, N.A., Singapore Branch provides a wide array of banking and financial services to institutions, consumers and professional markets in the community. Citibank, N.A. in Singapore began providing Securities & Fund Services in the mid-1970’s and a fully operational global custody product was launched in the early 1990’s. To date, Citibank, N.A., Singapore’s Securities & Fund Services business claims a global client base of premier banks, fund managers, broker dealers and insurance companies.

What are the responsibilities of the Trustees? The Trustees’ main functions are to act as trustee and custodian of the assets of the Funds and to safeguard the interests of the Unit holders of the Fund. They shall: � act in accordance with the provisions of the Deeds, the CMSA, the SC Guidelines and securities laws; � take into its custody the investments of the Funds and hold the investments in trust for the Unit holders; � ensure that the Manager operates and administers the Funds in accordance with the provisions of the Deeds, the CMSA, the

SC Guidelines and acceptable business practice within the unit trust industry; � ensure that it is fully informed of the investment policies of the Funds and of any changes made thereto, and if it is of the

opinion that the policies are not in the interests of the Unit holders, it shall instruct the Manager to take appropriate action as the Trustees deem fit and/or summon a Unit holders’ meeting for the purpose of giving such instructions to the Manager as the meeting thinks proper;

� as soon as practicable notify the SC of any irregularity or an actual or anticipated material breach of the provisions of the Deeds, the SC Guidelines and any other matters which in the Trustees’ opinion may indicate that the interests of Unit holders are not being served;

� exercise due care, skill, diligence and vigilance in carrying out its functions and duties, in actively monitoring the administration of the Funds by the Manager and in safeguarding the interests of Unit holders;

� maintain, or cause the Manager to maintain, proper accounting and other records in relation to those rights and interests, and of all transactions effected by the Manager on account of the Funds; and

� cause those accounts to be audited at least annually by an approved company auditor appointed by the Trustees and send or cause those accounts to be sent to Unit holders within two (2) months of the relevant accounting period.

Trustees’ statement of responsibility The respective Trustees have agreed to assume the position of Trustee of the respective Funds and are willing to assume all its obligations under the respective Deeds, all written laws and the SC Guidelines. The respective Trustees are entitled to be

143

indemnified out of the assets of the respective Funds for any liability incurred by the Trustees in performing or exercising any of its powers or duties in relation to the Funds. This indemnity is in addition to any indemnity allowed by law. However, it does not extend to liabilities arising from a breach of trust or failure to show the due care and diligence required of the Trustees having regard to its powers, authorities and discretions under the respective Deeds.

Exemptions or variations There have been no exemptions or variations from any relevant securities laws or the SC Guidelines granted to the Trustees by the SC.

Material Litigation and Arbitration As at LPD, neither DTMB, UTMB, ART, HSBCT nor its delegates are engaged in any material litigation and arbitration, either as plaintiff or defendant, and the Trustee and its delegate are not aware of any proceedings, pending or threatened or of any facts likely to give rise to any proceedings which might materially and adversely affect their financial position or business. As at 1 April 2011, save for the suits mentioned herein below, the MTB is not engaged in any material litigation as plaintiff or defendant and is not aware of any proceedings, pending or threatened or of any facts likely to give rise to any proceedings which might materially and adversely affect its financial position or business. The Bondholders of the Al-Bai Bithaman Ajil [ABBA] Bonds issued by Pesaka Astana (M) Sdn Bhd [PASB] have sued PASB for its failure to meet its bonds payment obligations under Kuala Lumpur High Court Civil Suit No. D5(D6)-22-1810-2005 [the ABBA Suit] and cited the Trustee as one of 12 co-defendants in the ABBA Suit. The claim in the ABBA Suit is for RM149,315,000.00 or any other sum that the Court deems fit. The other defendants in the ABBA Suit include among others the Facility Agent, PASB’s Chief Executive Officer, one of PASB’s directors and associate companies of the Chief Executive Officer and the said director. MTB has defended the ABBA Suit and its trial has concluded. The Trustee has appealed against the decision made by the High Court on 30 June 2010 in respect of the ABBA Suit in awarding judgement against it and another Defendant. Connected to the ABBA Suit, Amanah Short Deposits Berhad, a Noteholder of the Combined Commercial Papers and/or Medium Term Notes/Letters of Credit/Financial Guarantee Facilities [CP/MTN] totalling RM13 million and issued by PASB, have also sued PASB for full payment under CP/MTN arising from a cross-default by PASB under its ABBA Bonds, under Kuala Lumpur High Court Civil Suit No. D2-22-1085-2006 [the CP/MTN Suit]. The Trustee was cited as one of 5 co-defendants in the CP/MTN Suit. The claim in the CP/MTN Suit is for RM13 million or any other sum that the Court deems fit and damages. The other defendants in the CP/MTN Suit are the Facility Agent, PASB’s Chief Executive Officer and one of PASB’s directors. The Trustee is defending the CP/MTN Suit. Trial dates for the CP/MTN Suit fixed on 25 and 26 November 2010 have been vacated. In any event, any successful claim that may be established against MTB will be covered by MTB’s insurer and/or Malayan Banking Berhad as the ultimate holding company of the Trustee. As such, the ABBA Suit and the CP/MTN Suit will not materially affect the business or financial position of the Trustee. The sole Junior Noteholder of the Junior Notes issued by Aldwich Berhad [Aldwich] has sued the Trustee and the Security Agent of the Senior Bonds and the Junior Notes also issued by Aldwich for the sum of RM556,500,000.00 together with interest and costs under Kuala Lumpur High Court Suit No : D-22NCC-2339-2010 [the JN Suit]. The JN Suit arises in the Trustee’s ordinary course of business and in the performance of its duties and responsibilities to the Senior Bondholders and in acting responsibly further to the instructions of the Senior Bondholders via special resolution in declaring an Event Of Default for the Senior Bonds [EOD For Bonds]. Subsequently, the EOD For Bonds had caused a cross default on the Junior Notes resulting in the Trustee acting responsibly in declaring an Event Of Default for the Junior Notes in order to avoid the interests of the Junior Noteholder being jeopardized. MTB does not admit any liability to and is defending the JN Suit. Trial dates are yet to be fixed by the Court. The Trustee’s lawyers are of the initial view that the JN Suit is devoid of merit. The JN Suit will not materially affect the business or financial position of the Trustee. The Trustee reiterates that it has in place a strong team of professionals with priority chiefly on protecting the interest of all stakeholders and upholding best standards of service and management practice. For AmTB, save as disclosed below, as at LPD, there is no current material litigation and arbitration, including those pending or threatened, any facts likely to give rise to any proceedings which might materially affect the business or financial position of AmTB, or any of their delegates. A suit dated 12 December 2005 was filed by Meridian Asset Management Sdn Bhd (“Meridian”) against AmTB in respect of a claim amounting to RM27.6 million for alleged loss and damage together with interests and costs arising from the AmTB’s provision of custodian services to Meridian (“the Suit”). The Claim made by Meridian in the Suit includes its own alleged loss and damage and that of Malaysian Assurance Alliance Berhad (“MAA”) and Kumpulan Wang Persaraan (diperbadankan) (“KWAP”). AmTB was served on 5 October 2006 with an application to amend the Statement of Claim of the Suit by solicitors acting for Meridian. The amendment was to add the AmInvestment Bank Berhad, a related company, as second Defendant to the Suit and to further increase the claim by Meridian from RM27,606,169.65 to RM36,967,166.84 for the alleged loss and damage, to include loss due to reputation damage and loss of future earnings (together with interest and costs) arising from the provision of custodian services by AmTB to Meridian. The application was allowed in part on the 23rd January 2009 by the High Court, in that the application to add AmInvestment Bank Berhad as a Party to the Suit was dismissed whilst the proposed increased claim for the alleged loss from RM27,606,169.65 to RM 36,967,166.84 (“the Total Claim”) was allowed.

144

AmTB was served on 24 March 2006 with a Writ of Summons and Statement of Claim by solicitors acting for Malaysian Assurance Alliance Bhd (“MAA”). MAA had appointed Meridian as an external fund manager for certain of its insurance funds, and part of these funds were deposited by Meridian with AmTB. MAA has claimed its portion of the abovementioned alleged loss, being general damages and special damages of RM19,640,179 together with interest and costs. The fact of this case revolves around the same facts as that of the Suit and the alleged claim is part of the total claim made against AmTB. AmTB has also been served on 2nd September 2009 with a sealed copy of a Third Party Notice dated 12th August 2009 by solicitors acting for Meridian. The Third Party Notice, is taken against AmTB by Meridian on a suit filed by KWAP against Meridian in 2007, at the Kuala Lumpur High Court via suit number D5-22-1457-2007. The High Court suit by KWAP is for an alleged breach by Meridian of an Investment Management Agreement executed between KWAP and Meridian in 2001 (“the Agreement”) for a sum of RM7,254,050.42 general damages for breach of the Agreement and breach of trust together with interests and costs (“KWAP’s claim”) The facts of this case revolves around the same facts as that of the Suit and the alleged claim is part of the Total Claim. On the basis of KWAP’s claim, Meridian is seeking against AmTB via the Third Party Notice for AmTrustee to indemnify Meridian in respect of KWAP’s claim. Based on legal advice, AmTB believes it has good defence in respect of the claims.

145

Salient Terms of Deeds Money invested by an investor in the Fund will purchase a number of units, which represents the Unit holder’s interest in the Funds. Each unit held in the Funds represents an equal undivided beneficial interest in the assets of the Fund. However, the unit does not give a Unit holder an interest in any particular part of the Funds or a right to participate in the management or operation of the Funds (other than through Unit holders’ meetings). A Unit holder will be recognised as a registered Unit holder in the Funds on the Business Day his/her details are entered onto the Register of Unit holders.

Rights of Unit holders A Unit holder has the right, among others, to the following: � to inspect the Register, free of charge, at any time at the registered office of the Manager, and obtain such information

pertaining to its units as permitted under the Deeds and the SC Guidelines; � to receive the distribution of the Funds (if any), participate in any increase in the capital value of the units and to other rights and

privileges as set out in the Funds’ Deeds; � to call for Unit holders’ meetings; � to vote for the removal of the Trustees or the Manager through a Special Resolution; � to receive annual reports, interim reports or any other reports of the Funds; and � to exercise cooling-off for qualified investors. Unit holders’ rights may be varied by changes to the Deeds, the SC Guidelines or judicial decisions or interpretation.

Liabilities and limitation of Unit holders Liabilities (i) The liability of a Unit holder is limited to the purchase price per unit and the Application Fee paid or agreed to be paid for a Unit.

A Unit holder need not indemnify the Trustee or the Manager if there is a deficiency in the assets of the Funds to meet the claim of any creditor of the Trustees or the Manager in respect of the Funds.

(ii) The recourse of the Trustees, the Manager and any creditor is limited to the assets of the Funds. Limitations A Unit holder cannot: (i) interfere with any rights or powers of the Manager and/or the Trustees under the Deeds; (ii) exercise a right in respect of an asset of the Funds or lodge a caveat or other notice affecting the asset of the Funds or

otherwise claim any interest in the asset of the Funds; or (iii) require the asset of the Funds to be transferred to the Unit holder. For full details of the rights of a registered Unit holder of the Funds, please refer to the Deeds.

Maximum fees and charges permitted by the Deeds

This table describes the maximum charges permitted by the Deeds and payable directly by investors.

Charges

Application Fee

% / RM

Withdrawal Fee

% / RM

Switching Fee

% / RM

Equity Funds


Up to 10% is charged on the Net Asset Value per

unit. Nil

Any switching fee to be charged will be based on the difference between the application fee charged of the fund to be switched from and the fund to be switched into. An administrative fee in relation to switching may be charged as set out in the Prospectus.



unit.

Up to 5% of the Net Asset Value per unit.


146

Charges

Application Fee

% / RM

Withdrawal Fee

% / RM

Switching Fee

% / RM


Up to 7% is charged on the Net Asset Value per unit.


A fee not exceeding 7% of the Net Asset Value per unit. An administrative fee in relation to switching may be charged as set out in the Prospectus.



unit.





Nil




unit.



Mixed Asset Funds



unit.





Nil





Nil

(a) If a switch is made from a money market fund into any other equity fund(s), a maximum fee of up to 5.0% may be imposed by the Management Company on each switch;

(b) If a switch is made from a bond fund into any other equity fund(s), a maximum fee of up to 3.0% may be imposed by the Management Company on each switch;

(c) such other sum as may be determined by the Management Company from time to time.



unit.









Up to 5% of the Net Asset Value per unit





Nil Any switching fee to be charged will be based on the difference between the application fee

147

Charges

Application Fee

% / RM

Withdrawal Fee

% / RM

Switching Fee

% / RM

charged of the fund to be switched from and the fund to be switched into. An administrative fee in relation to switching may be charged as set out in the Prospectus.












Up to 7% of the Net Asset Value per unit. An administrative fee in relation to switching may be charged as set out in the Prospectus.








Up to 7% of the Net Asset Value per unit. An administrative fee in relation to switching may be charged as set out in the Prospectus.

This table describes the maximum fees permitted by the Deeds and payable indirectly by investors.

Fees

Management Fee

% / RM

Trustee Fee

% / RM

Equity Funds


Up to 2.25% per annum, calculated daily on the Net Asset Value.




Up to 0.06% per annum, calculated daily on the Net Asset Value, but subject to a minimum fee of

RM18,000 per annum.




RM18,000 per annum (excluding foreign sub-custodian fees and charges).

CIMB Islamic Equity Fund Up to 3.0% per annum, calculated daily on the

Net Asset Value.


RM18,000 per annum.







RM18,000 per annum.

Mixed Asset Funds




RM35,000 per annum.










CIMB Islamic Sukuk Fund Up to 3.0% per annum, calculated daily on the

Net Asset Value.


RM18,000 per annum.

148

Fees

Management Fee

% / RM

Trustee Fee

% / RM













RM18,000 per annum.







Up to 0.20% per annum, calculated daily on the Net Asset Value but subject to a minimum fee of

RM18,000 per annum (excluding foreign sub-custodian fee and charges).













A lower fee and/or charges than what is stated in the Deeds may be charged, all current fees and/or charges are disclosed in the Prospectus. Any increase of the fees and/or charges above that stated in the current Prospectus may be made provided that a supplemental master prospectus is issued and the maximum stated in the Deeds shall not be breached. Any increase of the fees and/or charges above the maximum stated in the Deeds shall require Unit holders' approval.

Expenses permitted by the Deeds The Deeds also provide for payment of other expenses. The major expenses recoverable directly from the Funds include: � commissions/fees paid to brokers/dealers in effecting dealings in the investments of the Funds, shown on the contract notes or

confirmation notes or difference accounts; � (where the custodial function is delegated by the Trustees), charges/fees paid to the sub-custodian; � tax and other duties charged on the Funds by the government and other authorities if any and bank fees; � the fees and other expenses properly incurred by the Auditor; � remuneration and out of pocket expenses of the independent members of the investment committee and/or the members of the

Shariah committee or advisers (if any) of the Funds, unless the Manager decides to bear the same; � fees for valuation of any investment of the Funds by independent valuers for the benefit of the Funds; � costs incurred for the modification of the Deeds otherwise than for the benefit of the Manager or the Trustees; � costs incurred for any meeting of Unit holders other than those convened by, or for the benefit of the Manager or the Trustees; � the sale, purchase, insurance, custody and any other dealings of investments including commissions/fees paid to brokers; � costs involved with external specialists approved by the Trustees in investigating and evaluating any proposed investment;

149

� the engagement of valuers, advisers and contractors of all kinds; � preparation and audit of the taxation returns and accounts of the Funds; � termination of the Funds and the retirement or removal of the Trustees or the Manager and the appointment of a new trustee or

manager; � any proceedings, arbitration or other dispute concerning the Funds or any asset, including proceedings against the Trustees or

the Manager by the other of them for the benefit of the Funds (except to the extent that legal costs incurred for the defense of either of them are not ordered by the court to be reimbursed out of the Funds); and

� costs of obtaining experts opinion by the Trustees and the Manager for the benefit of the Funds. The Manager and the Trustees are required to ensure that any fees or charges payable are reasonable and in accordance with the Deeds which stipulate the maximum rate in percentage terms that can be charged.

Retirement, removal or replacement of the Manager The Manager must retire as the Manager when required to retire by law.

The Manager may retire upon giving twelve (12) months’ notice to the Trustee of its desire to do so, or such lesser time as the Manager and Trustees may agree, in favour of another corporation. The Manager shall retire under the following circumstances: � if a Special Resolution is duly passed by the Unit holders that the Manager be removed; or

� if the Manager ceases to be approved by the SC to be the management company of the Funds. The Manager may be removed by the Trustees under certain circumstances outlined in the Deeds. These include: � if the Manager shall have gone into liquidation (except a voluntary liquidation for the purpose of reconstruction or

amalgamation upon terms previously approved in writing by the Trustees) or cease to carry on business or if a receiver shall be appointed of the undertaking or assets of the Manager or if any encumbrances shall take possession of any of its assets; or

� if the Manager ceases to carry on business; or � if the Trustees are of the opinion that the Manager has, to the prejudice of the Unit holders, failed to comply with any provision

or covenant under the Deeds or contravened any of the provisions of the CMSA; or; or � if the Manager has failed or neglected to carry out its duties to the satisfaction of the Trustees and the Trustees consider that it

would be in the interests of the Unit holders for it to do so, after the Trustees have given notice to it 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; or

The Manager may be replaced by another corporation appointed as manager by a Special Resolution of the Unit holders at a Unit holder’ss meeting convened in accordance with the Deeds either by the Trustees or the Unit holders.

Power of the Manager to remove / replace the Trustees The Trustees may be removed in the event that: � the Trustees have gone into liquidation; � the Trustees are placed under receivership, ceases to exist, fails or neglects its duties; � the Trustees cease to be approved by the SC to be a trustee for unit trust schemes; or � if a Special Resolution is duly passed by the Unit holders that the Trustee be removed. Additionally, the Manager is legislatively empowered under Section 299 of the CMSA to remove a Trustee under specific circumstances set out therein. The Trustees may be replaced by another corporation appointed as trustee by a Special Resolution of the Unit holders at a Unit holders’ meeting convened in accordance with the Deeds either by the Manager or the Unit holders.

Retirement or removal or replacement of the Trustees The Manager and the Trustee may agree, and may by the Deeds appoint in its stead a new trustee approved by the SC. The Trustees must retire as trustees of the Funds when required to retire by law. The Trustees may retire by giving twelve (12) months’ notice to the Manager or any shorter notice the Manager accepts.

150

The Trustees covenant that it will retire from the Funds constituted by or pursuant to the Deeds if and when requested to do so by the Manager if: � the Trustees shall go into liquidation; � if the Trustees are placed under receivership, ceases to exist, fails or neglects its duties; � the Trustees cease to be approved by the SC to be a trustee for unit trust schemes; or � if a Special Resolution is duly passed by the Unit holders that the Trustees be removed. Additionally, the Manager is legislatively empowered under Section 299 of the CMSA to remove the Trustees under specific circumstances set out therein. The Trustees may be replaced by another corporation appointed as trustee by a Special Resolution of the Unit holders at a Unit holders’ meeting convened in accordance with the Deeds either by the Manager or the Unit holders.

Power of the Trustees to remove, retire or replace the Manager The Manager may be removed by the Trustees on the grounds that are as stated under “Retirement, removal or replacement of the Manager”. In any of above said grounds, the Manager for the time being shall upon receipt of such notice by the Trustees cease to be the Manager and the Trustees shall by writing under its seal appoint another corporation to be the Manager of the Fund subject to such corporation entering into a deed(s) with the Trustees and thereafter act as manager during the remaining period of the Fund.

Termination of the Funds The Funds may be terminated or wound-up upon the occurrence of any of the following events: (a) the SC's approval is revoked under Section 212(7)(A) of the CMSA; (b) a Special Resolution is passed at a Unit holders' meeting to terminate or wind-up the Funds, following the occurrence of

events stipulated under Section 301(1) of the Act and the court has confirmed the resolution, as required under Section 301(2) of the CMSA;

(c) a Special Resolution is passed at a Unit holders' meeting to terminate or wind-up the Funds; (d) the Fund(s) has reached the Maturity Date; or (e) the effective date of an approved transfer scheme, as defined under the SC Guidelines, has resulted in the Funds, which

is the subject of the transfer scheme, being left with no asset/property.

Meetings of Unit holders A Unit holders' meeting may be called by the Manager, the Trustee and/or the Unit holders. Where the Manager or the Trustees convenes a meeting, the notice of the time and place of the meeting and terms of resolution to be proposed shall be given to the Unit holders in the following manner: (a) by sending by post a notice of the proposed meeting at least fourteen (14) days before the date of the proposed meeting,

to each Unit holder at the Unit holder's last known address or, in the case of Joint holders, to the Joint holder whose name stands first in the records of the Manager at the Joint holder's last known address; and

(b) by publishing, at least fourteen (14) days before the date of the proposed meeting, an advertisement giving notice of the

meeting in a national language newspaper published daily and circulating generally throughout Malaysia, and in one other newspaper as may be approved by the SC.

The Manager shall within twenty-one (21) days after an application is delivered to the Manager at its registered office, being an application by not less than fifty (50), or one-tenth (1/10) in number, whichever is less, of the Unit holders to which the Deeds relate, summon a meeting of the Unit holders: (i) by sending a notice by post of the proposed meeting at least seven (7) days before the date of the proposed meeting to

each of those Unit holders at his last known address or in the case of joint Unit holder, to the joint Unit holder whose name stands first in the Manager's records at the joint Unit holder's last known address; and

(ii) by publishing at least fourteen (14) days before the date of the proposed meeting, an advertisement giving notice of the

meeting in a national language national daily newspaper and in one other newspaper as may be approved by the SC, for the purpose of considering the most recent financial statements of the Funds, or for the purpose of requiring the retirement or removal of the Manager OR the Trustees, or for the purpose of giving to the Trustee such directions as the meeting thinks proper, or for the purpose of considering any other matter in relation to the Deeds. The quorum for a meeting of Unit holders of the Fund is five (5) Unit holders of the Fund present in person or by proxy, provided that for a meeting which requires a Special Resolution the quorum for that meeting shall be five (5) Unit holders, whether present in

151

person or by proxy, holding in aggregate at least twenty-five per centum (25%) of the units in issue for the Fund at the time of the meeting. If the Fund has five (5) or less Unit holders, the quorum required shall be two (2) Unit holders, whether present in person or by proxy and if the meeting requires a Special Resolution the quorum for that meeting shall be two (2) Unit holders, whether present in person or by proxy, holding in aggregate at least twenty-five per centum (25%) of the units in issue for the Fund at the time of the meeting. Voting is by a show of hands, unless a poll is duly demanded or the resolution proposed is required by the Deeds or by law to be decided by a percentage of all units. Each Unit holder present in person or by proxy has one (1) vote on a show of hands. On a poll, each Unit holder present in person or by proxy has one (1) vote for each whole fully paid unit held. In the case of joint Unit holders, only the person whose name appears first in the register may vote. Units held by the Manager or its nominees shall have no voting rights in any Unit holders' meeting of the Fund. In respect of the termination or winding-up of the Fund, voting shall only be carried out by poll.

152

Approvals and Conditions

Variations to the SC Guidelines We have obtained variations to the SC Guidelines for the following Funds: CIMB Islamic Enhanced Sukuk Fund CIMB-Principal has obtained approval from the SC for a variation of Clause 10.38 of the SC Guidelines which allow CIMB-Principal to calculate redemption based on several valuation points (instead of the next valuation point upon receipt of redemption request).

CIMB Islamic Sukuk Fund CIMB-Principal has obtained approval from the SC for a variation of Clause 10.17 (a) of the SC Guidelines which allow CIMB-Principal to pay Unit holder(s) within fifteen (15) days of receipt of the redemption notice, when the Fund’s total redemption amount is 15% or more of the total NAV of the Fund.

153

Related-Party Transactions / Conflict of Interest

Potential conflicts of interests and related party transactions The Manager, its directors and any of its delegates including the Investment Committee members will at all times act in the best interests of the Unit holders of the Funds and will not conduct itself in any manner that will result in a conflict of interest or potential conflict of interest. In the unlikely event that any conflict of interest arises, such conflict shall be resolved such that the Funds are not disadvantaged. In the unlikely event that CIMB-Principal faces conflicts in respect of its duties to the Funds and its duties to other CIMB-Principal Funds that it manages, CIMB-Principal is obliged to act in the best interests of all its investors and will seek to resolve any conflicts fairly and in accordance with the Deeds. The Manager shall not act as principals in the sale and purchase of any securities or investments to and from the Funds. The Manager shall not make any investment for the Funds in any securities, properties or assets in which the Manager or its officer has financial interest in or from which the Manager or its officer derives a benefit, unless with the prior approval of the Trustees. The Funds may maintain deposits with CIMB Islamic Bank Berhad and CIMB Investment Bank Berhad. CIMB-Principal may enter into transactions with other companies within the CIMB Group and the Principal Financial Group provided that the transactions are effected at market prices and are conducted at arm’s lengths. As the Trustees and service providers for all Funds, there may be related party transaction involving or in connection with the Funds in the following events: 1) where a Fund invests in instruments offered by the related party of the Trustees (i.e. placement of monies, structured

products, etc.); 2) where a Fund is being distributed by the related party of the Trustees as IUTA; 3) where the assets of a Fund are being custodised by the related party of the Trustees both as sub-custodian and/or global

custodian of that Fund (Trustees’ delegate); and 4) where a Fund obtains financing as permitted under the SC Guidelines, from the related party of the Trustees. The Trustees have in place policies and procedures to deal with any conflict of interest situation. The Trustees will not make improper use of their position as the owner of a Fund's assets to gain, directly or indirectly, any advantage or cause detriment to the interests of Unit holders. Any related party transaction is to be made on terms which are best available to the Fund and which are not less favourable to the Fund than an arms-length transaction between independent parties. Subject to the above and any local regulations, the Trustees and/or their related group of companies may deal with each other, the Funds or any Unit holder or enter into any contract or transaction with each other, the Funds or from any such contract or transaction or act in the same and similar capacity in relation to any other scheme.

Interests in the Funds Subject to any legal requirement, CIMB-Principal, the Trustees, or any related corporation of the Trustees or the Manager, or any officers or directors of any of them, may invest in the Funds. The directors of CIMB-Principal and of the Trustees will receive no payments from the Funds other than distributions that they may receive as a result of investment in the Funds. No fees other than the ones set out in this Master Prospectus (Shariah-compliant Funds) have been paid to any promoter of the Funds, or the Trustees (either to become a Trustee or for other services in connection with the Funds), or CIMB-Principal for any purpose.

Employees’ securities dealings CIMB-Principal has in place a policy contained in its Rules of Business Conduct, which regulates its employees’ securities dealings. An annual declaration of securities trading is required of all employees to ensure that there is no potential conflict of interest between the employees’ securities trading and the execution of the employees’ duties to the company and customers of the company.

154

Taxation Report

PricewaterhouseCoopers Taxation Services Sdn Bhd Level 10, 1 Sentral, Jalan Travers Kuala Lumpur Sentral P.O.Box 10192 50706 Kuala Lumpur The Board of Directors CIMB-Principal Asset Management Berhad Level 5, Menara Millenium 8, Jalan Damanlela Bukit Damansara 50490 Kuala Lumpur 8 June 2011 Dear Sirs, TAXATION OF THE TRUSTS OFFERED UNDER THE MASTER PROSPECTUS AND UNITHOLDERS This letter has been prepared for inclusion in the Master Prospectus in connection with the offer of units in the trusts listed in the Appendix (“the Trusts”). The taxation of income for both the Trusts and the Unitholders are subject to the provisions of the Malaysian Income Tax Act 1967 (“the Act”). The applicable provisions are contained in Section 61 of the Act, which deals specifically with the taxation of Trust bodies in Malaysia. TAXATION OF THE TRUSTS The Trusts will be regarded as resident for Malaysian tax purposes since the Trustees of the Trusts are resident in Malaysia. (1) Foreign Investments Income of the Trusts in respect of overseas investment is exempt from Malaysian tax by virtue of Paragraph 28 of Schedule 6 of the Act and distributions from such income will be tax exempt in the hands of the Unitholders. Such income from foreign investments may be subject to taxes or withholding taxes in the specific foreign country. However, any foreign tax suffered on the income in respect of overseas investment is not tax refundable to the Trusts in Malaysia. The foreign income exempted from Malaysian tax at the Trusts level will also be exempted from tax upon distribution to the Unitholders. (2) Domestic Investments (i) General taxation The income of the Trusts consisting of dividends, interest or profit2 (other than interest and profit1 which is exempt from tax) and other investment income derived from or accruing in Malaysia, after deducting tax allowable expenses, is liable to Malaysian income tax at the rate of 25 per cent. Gains on disposal of investments by the Trusts will not be subject to income tax. (ii) Tax Credit With effect from 1 January 2008, Malaysia introduced the single-tier system where dividends paid by companies would not be taxable. However, during the transitional period from 1 January 2008 to 31 December 2013, companies may still continue to be under the imputation system where dividends paid are taxed at source and tax credits available to recipients.

1 Section 2(7) of the Malaysian Income Tax Act 1967, provides that any reference to interest shall apply equally to gains or profits

received and expenses incurred, in lieu of interest, in transactions conducted in accordance with the principles of Shariah. The effect of this is that any gains or profits received and expenses incurred in Shariah transactions will be given the same tax treatment as interest similar to a conventional transaction.

155

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 available for single-tier dividends received. Dividends received by the Trusts would have suffered tax deduction at source at 25 per cent, unless specific exemptions apply e.g. pioneer dividends. No further tax will be payable by the Trusts on the dividends. However, such tax or part thereof will be refundable to the Trusts if the total tax so deducted at source exceeds the tax liability of the Trusts. (iii) Exempt Income The Trusts may receive Malaysian dividends which are tax exempt. The exempt dividends may be received from investments in companies which had previously enjoyed or are currently enjoying the various tax incentives provided under the law. The Trusts will not be taxable on such exempt income. With effect from 1 January 2008, dividends received from companies under the single-tier system would also be exempted. Interest income or profit1 or discount income derived from the following investments are exempt from tax:

a) Securities or bonds issued or guaranteed by the Government; b) Debentures and Islamic Securities, other than convertible loan stocks approved by the Securities Commission (“SC”); and c) Bon Simpanan Malaysia issued by Bank Negara Malaysia.

As such, provided the investment in structured products is seen to be “debentures” under Capital Markets and Services Act 2007, the income received will be exempted. Otherwise, tax implications could arise. Interest income or profit1 derived from the following investments are exempt from tax:

a) Interest or profit1 paid or credited by any bank or financial institution licensed under the Banking and Financial Institutions Act 1989 or the Islamic Banking Act 1983; and

b) Bonds, other than convertible loan stocks, paid or credited by any company listed in Malaysia Exchange of Securities Dealing and Automated Quotation Berhad (“MESDAQ”) (now known as Bursa Malaysia Securities Berhad ACE Market).

The income exempted from tax at the Trusts level will also be exempted from tax upon distribution to the Unitholders. (3) Hedging Instruments The tax treatment of hedging instruments would depend on the particular hedging instruments entered into. Generally, any gain / loss relating to the principal portion will be treated as capital gain / loss. Gains / losses relating to the income portion would normally be treated as revenue gains / losses. The gain / loss on revaluation will only be taxed or claimed upon realisation. Any gain / loss on foreign exchange is treated as capital gain / loss if it arises from the revaluation of the principal portion of the investment. (4) Income from Malaysia Real Estate Investment Trusts (“REITs”) Income from distribution from REITs will be received net of final withholding tax of 102 per cent. No further tax will be payable by the Trusts on the distribution. Distribution from such income by the Trusts will also not be subject to further tax in the hands of the unit holders. (5) Securities Borrowing and Lending Transaction (“SBL”) Pursuant to Income Tax (Exemption) (No. 30) Order 1995 - Revised 2008, the authorised borrower or lender in a SBL approved by SC will qualify for tax exemption on any income (other than dividends, manufactured payments, lending fees and interest earned on collateral) arising from loan of securities listed under Bursa Malaysia Berhad (“Bursa”). The same exemption also applies on the return of the same or equivalent securities and the corresponding exchange of collateral. (6) Other income The Trusts may be receiving income such as exit fee which will be subject to tax at the rate of 25 per cent. Lending fees are taxable when received by the lender. Withholding tax of 10 per cent is also applicable if the borrower pays lending fees to a non-resident lender. Interest earned on collateral is not exempted from income tax / withholding tax. Interest or profit paid by Bursa Malaysia Securities Clearing Sdn Bhd on cash collateral will be exempted from tax when received by non-resident Borrowers and individual Borrowers who are residents. Pursuant to Stamp Duty (Exemption) (No. 28) Order 1995 and Stamp Duty (Exemption) (No.12) Order 2000, the instrument of transfer of securities listed on Bursa and MESDAQ executed in favour of a borrower or lender and an instrument of transfer of collateral are exempted from stamp duty.

156

(7) Tax Deductible Expenses Expenses wholly and exclusively incurred in the production of gross income are allowable as deductions under Section 33(1) of the Act. In addition, Section 63B of the Act provides for tax deduction in respect of managers’ remuneration, expenses on maintenance of the register of Unitholders, share registration expenses, secretarial, audit and accounting fees, telephone charges, printing and stationery costs and postages. The deduction is based on a formula subject to a minimum of 10 per cent and a maximum of 25 per cent of the expenses. _______________________________________________

2 The reduced withholding tax rate of 10% is up to 31 December 2011. (8) Real Property Gains Tax (RPGT) With effect from 1 January 2010, Real Property Gains Tax of 5 per cent will be applicable on gains on disposal of investments representing shares in real property companies3 where the disposal is within 5 years of ownership. TAXATION OF UNITHOLDERS Unitholders will be taxed on an amount equivalent to their share of the total taxable income of the Trusts to the extent of the distributions received from the Trusts. The income distribution from the Trusts will carry a tax credit in respect of the Malaysian tax paid by the Trusts. Unitholders will be entitled to utilise the tax credit against the tax payable on the income distribution received by them. No additional withholding tax will be imposed on the income distribution from the Trusts. Non-resident Unitholders may also be subject to tax in their respective jurisdictions. Depending on the provisions of the relevant country’s tax legislation and any double tax treaty with Malaysia, the Malaysian tax suffered may be creditable against the relevant foreign tax. Corporate Unitholders, resident4 and non-resident, will generally be liable to income tax at 25 per cent on distribution of income received from the Trusts. The tax credits attributable to the distribution of income can be utilised against the tax liabilities of these Unitholders.

_____________________________________________

3 A real property company is a controlled company which owns or acquires real property or shares in real property companies with a market value of not less than 75 per cent of its total tangible assets. A controlled company is a company which does not have more than 50 members and is controlled by not more than 5 persons.

4 Resident companies with paid up capital in respect of ordinary shares of RM2.5 million and below will pay tax at 20 per cent for the first RM500,000 of chargeable income with the balance taxed at 25 per cent.

With effect from year of assessment 2009, the above shall not apply if more than -

a) 50 per cent of the paid up capital in respect of ordinary shares of the company is directly or indirectly owned by a related

company;

b) 50 per cent of the paid up capital in respect of ordinary shares of the related company is directly or indirectly owned by the first mentioned company;

c) 50 per cent 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 another company.

“Related company” means a company which has a paid up capital in respect of ordinary shares of more than RM2.5 million at the beginning of the basis period for a year of assessment.

Individuals and other non-corporate Unitholders who are tax resident in Malaysia will be subject to income tax at graduated rates ranging from 1 per cent to 26 per cent. Individuals and other non-corporate Unitholders who are not resident in Malaysia will be subject to income tax at 26 per cent. The tax credits attributable to the distribution of income can be utilised against the tax liabilities of these Unitholders. The distribution of exempt income and gains arising from the disposal of investments by the Trusts will be exempted from tax in the hands of the Unitholders. Any gains realised by Unitholders (other than dealers in securities, insurance companies or financial institutions) on the sale or redemption of the units are treated as capital gains and will not be subject to income tax. This tax treatment will include gains in the form of cash or residual distribution in the event of the winding up of the Trusts.

Unitholders electing to receive their income distribution by way of investment in the form of new units will be regarded as having purchased the new units out of their income distribution after tax. Unit splits issued by the Trusts are not taxable in the hands of Unitholders.

We hereby confirm that the statements made in this report correctly reflect our understanding of the tax position under current Malaysian tax legislation. Our comments above are general in nature and cover taxation in the context of Malaysian tax legislation

157

only and do not cover foreign tax legislation. The comments do not represent specific tax advice to any investors and we recommend that investors obtain independent advice on the tax issues associated with their investments in the Trusts. Yours faithfully, for and on behalf of PRICEWATERHOUSECOOPERS TAXATION SERVICES SDN BHD Jennifer Chang Senior Executive Director PricewaterhouseCoopers Taxation Services Sdn Bhd have given their written consent to the inclusion of their report as Taxation Adviser in the form and context in which it appears in this Prospectus and have not withdrawn such consent prior to the delivery of a copy of this Prospectus for approval.

158

APPENDIX

The Trusts consist of the following 20 funds:

1. CIMB Islamic DALI Equity Growth Fund

2. CIMB Islamic DALI Equity Fund

3. CIMB Islamic DALI Equity Theme Fund

4. CIMB Islamic Equity Fund

5. CIMB Islamic Equity Aggressive Fund

6. CIMB Islamic Small Cap Fund

7. CIMB Islamic Balanced Fund

8. CIMB Islamic Balanced Growth Fund

9. CIMB Islamic Enhanced Sukuk Fund

10. CIMB Islamic Sukuk Fund

11. CIMB Islamic Money Market Fund

12. CIMB Islamic Deposit Fund

13. CIMB Islamic Asia Pacific Equity Fund

14. CIMB Islamic Greater China Equity Fund

15. CIMB Islamic Global Emerging Markets Equity Fund

16. CIMB Islamic Global Equity Fund

17. CIMB Islamic Global Commodities Equity Fund

18. CIMB Islamic Kausar Lifecycle 2017



159

Additional Information

Investors services Note: These services are only available to investors of selected Approved Distributors. How will I be informed about my investment? We will send you a written confirmation of: � Your CIMB-Principal investor number; � All your transactions and distributions (if any); � Any changes to your personal details (i.e. your address, telephone number or bank account information); � The details of your investment each January; and � The financial accounts of the Fund for each half-year within two (2) months from the end of the half-year or financial year, as

the case may be. In the case of joint Unit holders, all correspondences and payments will be made and sent to the first registered Unit holder. How can I obtain information about the performance of the Fund? You can obtain up-to-date fund information from our monthly fund fact sheets, our quarterly investor magazine – CIMB-Principal Investors Circle and our website, http://www.cimb-principal.com.my Who do I contact if I need information about my investment? You can contact our Customer Care Centre at (03) 7718 3100. Our Customer Care Centre is available Mondays to Fridays (except on Selangor public holidays), from 8:30 a.m. to 5:30 p.m. (Malaysian time) or you can email us at [email protected] If you wish to write-in, please address your letter to: CIMB-Principal Asset Management Berhad Customer Care Centre 50, 52 & 54 Jalan SS 21/39 Damansara Utama 47400 Petaling Jaya Selangor Darul Ehsan MALAYSIA

Anti-money laundering policies and procedures In order to comply with the Anti-Money Laundering and Counter Financing of Terrorism Act 2001 (“AMLA”) and the relevant policies, procedures, guidelines and/or regulations aimed at the prevention of money laundering, the Manager will be required to obtain satisfactory evidence of customer’s identity and have effective procedures for verifying the bona fides of customers. The Manager conducts ongoing due diligence and scrutiny of customers’ identity and his/her investment objectives which may be undertaken throughout the course of the business relationship to ensure that the transactions being conducted are consistent with the Manager’s knowledge of the customer, its business and its risk profile. It may not have direct contact with such customers and depending on the circumstances of each application, a detailed verification of identity might not be required where:

(i) the applicant makes the payment for his/her investment from an account held in the applicant's name at a recognised financial

institution; (ii) the applicant is regulated by a recognised regulatory authority and is based or incorporated in, or formed under the law of, a

recognised jurisdiction; or (iii) the application is made through an intermediary which is regulated/licensed by a recognised regulatory authority and is based

in or incorporated in, or formed under the law of a recognised jurisdiction. The Manager also reserves the right to request such information as is necessary to verify the source of the payment. The Manager may refuse to accept the application and the subscription monies if an applicant of units delays in producing or fails to produce any information required for the purposes of verification of identity or source of funds, and in that event the Manager shall return the application monies (without interest and at the expense of the applicant) by telegraphic transfer to the account from which the monies were originally sent/or by way of a cheque to the applicant’s last known address on the records of the Manager.

A transaction or a series of transaction shall be considered as ‘suspicious’ if the transaction in question is inconsistent with the customer’s known transaction profile or does not make economic sense. Suspicious transactions shall be submitted directly to the Financial Intelligence Unit of Bank Negara Malaysia.

160

Distribution channels where units can be purchased or redeemed The Funds are distributed via the following channels: � CWA, an IUTA of the Manager; and � Other IUTAs. The addresses and contact numbers of the head office and regional offices of CIMB-Principal are disclosed in the Corporate Directory. The Approved Distributors of the Fund are listed in the “Distributors of the Funds” chapter.

161

Consent PricewaterhouseCoopers Taxation Services Sdn Bhd, Deutsche Trustees Malaysia Berhad, Mayban Trustees Berhad, AmanahRaya Trustees Berhad, HSBC (Malaysia) Trustee Berhad, AmTrustee Berhad, Universal Trustee (Malaysia) Berhad and CIMB Islamic Bank Berhad have given their written consent to act in their respective capacity and have not subsequently withdrawn their consent to the inclusion of their names and/or letter/report in the form and context in which it appears in this Master Prospectus (Shariah-compliant Funds).

162

Documents available for inspection For a period of not less than twelve (12) months from the date of this Master Prospectus (Shariah-compliant Funds), Unit holders may inspect the following documents or copies thereof in relation to the Funds at the registered office of the Manager and/or the Trustees (where applicable) without charge: � The Deeds of the Funds; � Material contracts or documents referred to in this Master Prospectus (Shariah-compliant Funds); � The latest annual and interim reports of the Funds; � 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 (Shariah-compliant Funds); � The audited accounts of the Manager and the Funds (where applicable) for the last three (3) financial years; � Writ and relevant cause papers for all current material litigation and arbitration disclosed in the Master Prospectus (Shariah-

compliant Funds); and � Any consent given by experts or persons whose statement appears in this Master Prospectus (Shariah-compliant Funds).

163

Distributors of the Funds The CIMB-Principal Shariah-compliant Funds are available (but not limited to) from the following distributors and their branches:

CIMB Wealth Advisors Berhad (209627-H) Head Office 50, 52 & 54 Jalan SS21/39 Damansara Utama 47400 Petaling Jaya Selangor Darul Ehsan MALAYSIA (03) 7718 3000 (Distributor for all Funds)

CIMB Bank Berhad (13491-P) 6, Jalan Tun Perak 50050 Kuala Lumpur MALAYSIA 1 300 880 900 (Distributor for IAPEF, IBF, IBGF, DALI, DALI2, DALI3, IDF, IESF, IEAF, IEF, IGCEF, IGEMEF, IGEF, ICEF, IMMF, ISCF and ISF)

CIMB Investment Bank Berhad – Retail Equities (163712-V) (A Participating Organisation of Bursa Malaysia Securities Berhad) 10th Floor, Commerce Square Jalan Semantan Damansara Heights 50490 Kuala Lumpur MALAYSIA (03) 2084 9525 (Distributor IAPEF, IBGF, IDF, IESF, IEAF, IGCEF, IGEMEF,ICEF and IMMF)

CIMB Private Banking (18417-M) Lot 7-01 Level 7 Tower Block Menara Milenium 8, Jalan Damanlela Bukit Damansara 50490 Kuala Lumpur MALAYSIA (03) 2723 8688 (Distributor for IAPEF, IBF, IBGF, DALI, DALI2, IDF,IESF, IEAF, IEF,IGCEF, IGEMEF,IGCEF,IMMF, and ISF )

CIMB Islamic Bank Berhad (671380-H) Menara Bumiputra-Commerce 11, Jalan Raja Laut 50350 Kuala Lumpur MALAYSIA Tel : 1300 880 900

(Distributor for IAPEF, IBF, IBGF, DALI, DALI2, DALI3, IDF, IESF, IEAF, IEF, IGCEF, IGEMEF, IGEF, ICEF, IMMF, ISCF and ISF)

Affin Bank Berhad (25046-T) Menara Affin 80, Jalan Raja Chulan 50200 Kuala Lumpur MALAYSIA (03) 2055 9733 / 2055 9936 (Distributor for IESF, IBGF, IEAF, IAPEF,IBF,DALI,DALI2 and ISCF)

AmMerchant Bank Berhad (23742-V) 18th Floor, Bangunan AmBank Group 55, Jalan Raja Chulan 50200 Kuala Lumpur (03) 2036 1300 (Distributor for IBF, IBGF, DALI, DALI2, IEAF, IEF, ISCF and ISF)

Hong Leong Bank Berhad (97141-X) Level 3, Wisma Hong Leong 18, Jalan Tun Perak 50450 Kuala Lumpur (03) 2164 2828 (Distributor for IAPEF, IBGF, IESF and IEAF)

United Overseas Bank (Malaysia) Bhd (271809K) Level 2, Menara UOB Jalan Raja Laut 50350 Kuala Lumpur MALAYSIA (03) 2732 4332 (Distributor for IEAF, IAPEF and ISCF)

HSBC Bank Malaysia Berhad (127776-V) Head Office Personal Financial Services 2 Leboh Ampang 50100 Kuala Lumpur MALAYSIA (03) 2050 7878 (Distributor for IAPEF and IGEMEF )

Phillip Mutual Berhad (570409-K) B-2-7, Megan Avenue II Jalan Yap Kwan Seng 50450 Kuala Lumpur MALAYSIA (03) 2783 0300 (Distributor for IESF, IBGF, IEAF, IAPEF, and IMMF)

RHB Investment Management Sdn Bhd (174588-X) Level 10, Tower One RHB Centre Jalan Tun Razak 50400 Kuala Lumpur MALAYSIA (03) 9280 2131 (Distributor for IESF, IBGF and IEAF)

RHB Bank Berhad (6171-M) Investment Services Department Level 9, Tower 2, RHB Centre Jalan Tun Razak 50400 Kuala Lumpur MALAYSIA (03) 9206 8118 (Distributor for IESF, IBGF, IEAF, IBF, ISCF, and DALI2)

Standard Chartered Bank Malaysia Berhad (115793-P) Menara Standard Chartered Level 8, 30 Jalan Sultan Ismail 50250 Kuala Lumpur MALAYSIA (03) 7718 9688 (Distributor for IAPEF, IMMF and IGEMEF)

164

EON Bank Berhad (92351-V) 12th Floor, Menara EON Bank 288, Jalan Raja Laut 50350 Kuala Lumpur MALAYSIA (03) 2612 8870 (Distributor for IBF, ISCF and DALI2)

Bank Kerjasama Rakyat Malaysia Berhad (2192) Tingkat 15, Bangunan PERKIM 150, Jalan Ipoh 51200 Kuala Lumpur MALAYSIA (03) 4027 2500 (Distributor for IAPEF, IBF,IEF,IGEMEF,IGEF,DALI,IMMF)

OCBC Bank (Malaysia) Berhad (295400-W) Head Office Menara OCBC 18, Jalan Tun Perak 50500 Kuala Lumpur MALAYSIA (03) 2034 5034 (Distributor for IESF and IEAF )

Citibank Berhad (297089-M) Head Office Citibank Investment Services Menara Citibank 165, Jalan Ampang, 50450 Kuala Lumpur MALAYSIA (03) 2383 8833 (Distributor for IBGF and IAPEF)

Kenanga Investment Bank Berhad (Company No. 302859-X) Level 8, Kenanga International Jalan Sultan Ismail 50250 Kuala Lumpur MALAYSIA (03) 2164 9080 (Distributor for IBGF, IEAF and IAPEF)

Kuwait Finance House (Malaysia) Berhad (672174T) Level 18, Tower 2 Etiqa Twins 11, Jalan Pinang P.O. Box 10103 50704 Kuala Lumpur (Distributor for DALI, DALI2 and IAPEF)

ECM Libra Investment Bank Berhad (682-X) (formerly known as ECM Libra Avenue Securities Berhad) 3rd Floor, Wisma Genting Jalan Sultan Ismail 50250 Kuala Lumpur MALAYSIA (03) 2178 1888 (Distributor for IESF, IBGF, IEAF and IAPEF)

165

Appendix I – Unit Trust Loan Financing Risk Disclosure Statement

Investing in a unit trust fund with borrowed money is more risky than investing with your own savings. You should assess if loan financing is suitable for you in light of your objectives, attitudes to risk and financial circumstances. You should be aware of the risks, which would include the following: 1. The higher the margin of financing (that is, the amount of money you borrow for every Ringgit of your own money that you put

in as deposit or down payment) the greater the potential for losses as well as gains. 2. You should assess whether you have the ability to service the repayments on the proposed loan. If your loan is a variable rate

loan, and if interest rates rise, your total repayment amount will be increased. 3. If unit prices fall beyond a certain level, you may be asked to provide additional acceptable collateral or pay additional amounts

on top of your normal instalments. If you fail to comply within the time prescribed, your units may be sold to settle your loan. 4. Returns on unit trusts are not guaranteed and may not be earned evenly over time. This means that there may be some years

where returns are high and other years where losses are experienced. Whether you eventually realise a gain or loss may be affected by the timing of the sale of your units. The value of units may fall just when you want your money back even though the investment may have done well in the past.

The brief statement cannot disclose all the risks and other aspects of loan financing. You should therefore carefully study the terms and conditions before you decide to take a loan. If you are in doubt in respect of any aspect of the Risk Disclosure Statement or the terms of the loan financing, you should consult the institution offering the loan. ACKNOWLEDGEMENT OF RECEIPT OF RISK DISCLOSURE STATEMENT I acknowledge that I have received a copy of this Unit Trust Loan Financing Risk Disclosure Statement and understand its contents. Signature :

Full name :

Date :

MASTER PROSPECTUS (SHARIAH-COMPLIANT FUNDS)

Stable investments that stand the test of time

Enquiries:Customer Care Centre (603) 7718 3100Email [email protected]

CIMB-Principal Asset Management Berhad (304078-K)

Manager : CIMB-Principal Asset Management Berhad (304078-K)

Trustees : AmanahRaya Trustees Berhad (766894-T) Deutsche Trustees Malaysia Berhad (763590-H)

Mayban Trustees Berhad (5004-P) AmTrustee Berhad (163032-V)

HSBC (Malaysia) Trustee Berhad (1281-T) Universal Trustee (Malaysia) Berhad (17540-D)

This Master Prospectus (Shariah-Compliant Funds) is dated 30 June 2011 and expires on 29 June 2012 and incorporates the following 20 Funds namely:

Equity Funds : CIMB Islamic DALI Equity Growth Fund (constituted on 7 May 1998), CIMB Islamic DALI Equity Fund (constituted on 30 April 2003), CIMB Islamic DALI Equity Theme Fund (constituted on 28 February 2008), CIMB Islamic Equity Fund (constituted on 8 October 2004), CIMB Islamic Equity Aggressive Fund (constituted on 15 June 1995) and CIMB Islamic Small Cap Fund (constituted on 30 April 2003).

Mixed Asset Funds : CIMB Islamic Balanced Fund (constituted on 8 March 2001) and CIMB Islamic Balanced Growth Fund (constituted on 26 May 2003).


: CIMB Islamic Enhanced Sukuk Fund (constituted on 23 February 2005), CIMB Islamic Sukuk Fund (constituted on 8 October 2004), CIMB Islamic Money Market Fund (constituted on 17 March 2008) and CIMB Islamic Deposit Fund (constituted on 9 September 2009).


: CIMB Islamic Asia Pacific Equity Fund (constituted on 2 June 2006), CIMB Islamic Greater China Equity Fund (constituted on 2 June 2009), CIMB Islamic Global Emerging Markets Equity Fund (constituted on 2 July 2008), CIMB Islamic Global Equity Fund (constituted on 8 January 2008), CIMB Islamic Global Commodities Equity Fund (constituted on 6 January 2010) and CIMB Islamic Kausar Lifecycle Funds (ILF2017, ILF2022 & ILF2027) (constituted on 12 July 2007).

DISClAIMER : INVESTORS ARE ADVISED TO READ AND UNDERSTAND THE CONTENTS OF THE MASTER PROSPECTUS. IF IN DOUBT, PLEASE CONSULT A PROFESSIONAL ADVISER. FOR INFORMATION CONCERNING CERTAIN RISK FACTORS WHICH SHOULD BE CONSIDERED BY PROSPECTIVE INVESTORS, SEE “RISK FACTORS” COMMENCING ON PAGE 31.