Takafulink Fund Fact Sheet

TAKAFULINK FUND FACT SHEET

Takaful & Us

Takaful is a mutual assistance certificate based on the principles

of shared responsibility, cooperation and common interest.

Each covered participant contributes on the basis of Tabarru’

(donation) into a fund that will be used to support each other in

times of need.

The principle of Takaful is to uphold the principle of ‘brotherhood’.

It strictly adheres to ethics and transparency of Shariah guidelines

that prohibits uncertainty (Gharar), gambling/luck (Maisir), and

interest (Riba).

At PruBSN we uphold these values through professional practise

in order to give the customers everything they need and more.

Values that are clearly reflected in each and every one of our

transactions. Values that make us a prudent choice.

We hold in our portfolio a variety of innovative products that

covers you in every aspect of your life. From protection to savings

to spiritual fulfillment, each of our products are designed to make

life worth living. PruBSN Link Series, our latest product provides

total flexibility in your hands to secure the best protection and

savings deal for every stage in your life. Our other range of

products include, PruBSN Ummah, PruBSN Protect, PruBSN

CrisisCover, Takaful Rumahku, PruBSN Pelindung, PruBSN

Kasih and Giro Takaful Series.

FEATURES OF FUND

Investment Objective

The Takafulink Dana Ekuiti Fund aims to maximize returns over medium to long-term by investing in high quality Shariah-approved shares listed on Bursa Malaysia.

Investment Strategy & Approach• We believe our disciplined, valuation-driven investment style can generatesuperiorlong-termreturns.

Pricing inefficiencies driven by irrational investor behavior can be successfully exploited through active in-house research and portfolio management.Successfulandsustainableexploitationofsecuritymis-pricing requires thedisciplinedapplicationofourvaluation-drivenapproach.Ourprocessseekstoeliminatethebehavioralbiasesthatleadtomis-pricinginthefirstinstance.

By imputing conservative assumptions to our earnings forecasts, ensures thatourin-housevaluationtargetisachievable,butatthesametimewearenot eliminating potential opportunities by taking calculated risk in periods of volatility that tend to be event driven.

We aim for a high degree of consistency in long-term performance for allfunds, whilst adhering to strict and professional investment guidelines.

• Investinhigh-qualityShariah-approvedshareslistedonBursaMalaysia.

Asset Al locationUp to 100% in Shariah-compliantMalaysian equities. Funds not invested inequitieswillbeinvestedinShariah-compliantmoneymarketinstruments.

Performance Benchmark• 87.5%FBMS+12.5%MBB1monthTier2IslamicDepositrate.

• Further information on MBB 1 month Tier 2 Islamic Deposit rate can beobtainedatMaybank2Uwebsite.

• Further information on FBMS can be obtained at Bursa and Bloombergwebsite.

Fund ManagerPrudentialFundManagementBerhad(531241-U).

FEES & CHARGES

Fund Management Charge1.5%p.a

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FUND PERFORMANCENotice: Past performance of the fund is not an indication of its future performance

Warning: This is strictly the performance of the investment fund, and not the returns earned on the actual contribution paid of the investment-linked takaful product.

* 2007-2009 Benchmark: FBMS. 2010 Benchmark: 87.5% FBMS + 12.5% MBB 1 month Tier 2 Islamic Deposit rate.

Unit Pricing• Unitpricingisdonedaily.

• Unitpriceiscalculatedbasedonthemarketvalueoftheunderlyingassetsofthe fund, divided by the number of units issued.

• ATakafulinkfunddoesnotpayanydividend.Allincomesandcapitalgainsareautomatically rolled up in its unit price.

• Unitpriceisthesinglepriceatwhichunitsarecreatedandcancelled.

Forward Pricing• Unitsarecreatedandcancelledatthenextpricingdatefollowingreceiptof

contribution or notification of claim respectively.

Basis of calculation of past performance:

= NAV* For Year n

%NAV* For Year n-1

* NAV is per unit basis

YearTakafulink

Dana EkuitiBenchmark

2010 17.70% 16.18%

2009 36.13% 43.03%

2008 -35.37% -43.52%

2007 35.81% 43.69%

2006 N/A N/A

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RISKMarket Risk

This risk refers to changes and developments in regulations, politics and the economy of the country. The very nature of investing in a fund, however, helps mitigatetheriskbecauseafundwouldgenerallyholdawell-diversifiedportfolioof securities from different market sectors that the collapse of any one security or any one market sector would not impact too greatly on the value of the fund.

Liquidity Risk

Liquidity refers to the ease of converting an investment into cash withoutincurring an overly significant loss in value. If a fund has a large portfolio of stocks issuedbysmallercompanies,therelativelylessliquidnatureofthosestockscancause the value of the fund to drop; this is because there are generally less ready buyers of such stocks as compared with the stocks of larger and more established companies. The risk is managed by taking greater care in stock selection and diversification.

Interest Rate Risk

InterestrateriskisageneralriskaffectingShariah-basedfunds.ThisissoeventhoughShariah-basedfundsonlyinvestininvestmentsthatareinaccordancewithShariahrequirements.Thereasonforthisisbecauseahighlevelofinterestrates will inevitably affect corporate profits and this will have an impact on the valueofbothequityanddebtsecurities.

Stock Risk or Issuer Risk

This risk refers to the individual risk of the respective companies issuing the securities. Specific risk includes, but is not limited to changes in consumer tastes and demand, legal suits, competitive operating environments, changing industry conditions and management omissions and errors. However, this risk is minimised through investing in a wide range of companies in different sectors and thus function independently from one another.

Country Risk

This risk refers to changes and developments in regulations, politics and the economy of the country. The investments may be affected by uncertainties in the investing country such as domestic political developments, restrictions on foreign investment and currency repatriation, changes in governmental policies, changes in taxation and other developments in the laws and regulations. In addition, the reduced availability of public information, the legal infrastructure and the lack of uniform accounting, auditing and financial reporting standards or otherregulatorypracticesandrequirementsmayreducethedegreeofinvestorprotection afforded. Some of the securities may also be subjected to government taxes or incur higher custodian expenses which may reduce the yield on such securities.

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Risk of Non-Compliance

Non-adherence with laws, rules, regulations, prescribed practices, internalpolicies and procedures may result in tarnished reputation, limited business opportunities and reduced expansion potential for the management company. Investor’s investment goals may also be affected should the fund manager not adhere to the investment mandate. Such risk is mitigated by the compliance unit of the management company which oversees the entire compliance matters of the management company.

Concentration Risk

This is the risk of a fund focusing a greater portion of its assets in a smaller selectionofinvestments.Thefall inpriceofaparticularequityinvestmentwillhave a greater impact on the funds and thus greater losses. This risk may be minimised by the manager conducting even more rigorous fundamental analysis before investing in each security.

Management Company Risk

There is risk that the management company may not adhere to the investment mandate of the respective fund. With close monitoring by the investment committee, back office system is being incorporated with limits and controls, and regular reporting to the senior management team, the management company is able to manage such as risk. This risk is also mitigated by the existence of the custodian. Poor management of the fund may also jeopardise the investment of investors through the loss of the capital invested in the fund.

Inflation Risk

Inflation risk can be defined as potential intangible losses that may arise from the increase in prices of goods and services in an economy over a period of time. Inflation causes the reduction in purchasing power and if the rate of inflation is constantly higher than the rate of returns on investments, the eventual true value of investments could be negative.

Investment Managers’ Risk

Poor management of the fund due to lack of experience, knowledge, expertise and poor management techniques would have an adverse impact on theperformance of the fund. This may result in investors suffering loss on their investment of the fund.

Reclassification of Shariah Status Risk

TheriskthatthecurrentlyheldShariah-compliantsecurities intheportfolioofShariah-based fundsmay be reclassified to be Shariah non-compliant uponreview of the securities by the SACSC performed twice yearly. If this occurs, the value of the fund may be adversely affected where the Manager will take the necessary steps to dispose of such securities in accordance with the SACSC’s advice.

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RISK MANAGEMENTForecasting Risk

Potential risks are taken into consideration in the process of sector allocation and stock selection based on analysis on various key factors such as economic conditions,liquidity,qualitativeandquantitativeaspectsofthesecurities.

System Control

Risk parameters are set internally for each fund, depending on client’s risk profile. These risk parameters include limits of issuer bet, group issuer, sector rating and issue size of the securities held in the portfolio. CRTS is in place to monitor portfolio risks, serving as an auto filter for any limitations or breaches.

CRTS is in place to monitor portfolio risks, serving as an auto filter for any limitations or breaches.

Other Info

Target Market

For participants with high risk tolerance and medium to long term investment horizon.

Basis & Frequency of unit Valuation

DailyForwardpricing.

Exceptional circumstances

• PruBSNreservestherightinexceptionalcircumstances(forexample,whenthere is an unusually high volume of sale of investments within a short period) to defer the withdrawal of units and the surrender of the certificate for a period not exceeding six (6) months from the date of application.

• PruBSNmay suspend unit pricing and certificate transaction if any of theexchanges in which the fund is invested is temporarily suspended for trading. In such event, written notice shall be given to participants of in force certificates.

Remarks:CRTS -TheCharlesRiverTradingSystemFBMS -FTSEBursaMalaysiaEmasShariahIndexNAV -NetAssetValueSACSC -ShariahAdvisoryCounciloftheSecuritiesCommissionMBB -MalayanBankingBerhad

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ONFEATURES OF FUND


The Takafulink Dana Bon Fund aims to provide medium to long-term accumulation of capital by investing in selected IPDS and IFF.

Investment Strategy & Approach• We believe our disciplined, valuation-driven investment style can generatesuperiorlong-termreturns.Weaimtoexploitopportunitiesatboththeassetallocation and securities selection levels through active in-house researchand portfolio management, with a focus on maximization of returns at an acceptable level of risks.


• InvestinselectedIPDSandIFF.

Asset Al locationUpto100%inShariah-compliantMalaysianfixed incomeinstruments.FundsnotinvestedinfixedincomeinstrumentswillbeinvestedinShariah-compliantmoney market instruments.

Performance Benchmark• 75%3yearsGII+25%MBB1monthTier2IslamicDepositrate.

• Further information on MBB 1 month Tier 2 Islamic Deposit rate can beobtainedatMaybank2Uwebsite.

• Further information on GII can be obtained at Bank Negara Malaysiawebsite.


FEES & CHARGES


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* 2007-2009 Benchmark: MBB 1 month Tier 2 Islamic Deposit rate. 2010 Benchmark: 75% 3 years GII + 25% MBB 1 month Tier 2 Islamic Deposit rate.








= NAV* For Year n

%NAV* For Year n-1


YearTakafulink Dana Bon

Benchmark

2010 5.48% 3.37%

2009 5.01% 2.13%

2008 1.81% 2.90%

2007 4.15% 3.20%

2006 N/A N/A

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RISKMarket Risk

This risk refers to changes and developments in regulations, politics and the economy of the country. The very nature investing in a fund, however, helps mitigatetheriskbecauseafundwouldgenerallyholdawell-diversifiedportfolioof securities from different market sectors that the collapse of any one security or any one market sector would not impact too greatly on the value of the fund.

Liquidity Risk

Liquidityreferstotheeaseofconvertinganinvestmentintocashwithoutincurringan overly significant loss in value. Should there be negative developments on anyoftheissuers,thiswillincreaseliquidityriskoftheparticularsecurity.Thisisbecause there are generally less ready buyers of such securities as the fear of a credit default increases. The risk is managed by taking greater care in security selection and diversification.

Interest Rate Risk

This risk is crucial in a Sukuk fund since Sukuk portfolio management depends on forecasting interest rate movements. Generally, demand for Sukuk move inversely to interest rate movements therefore as interest rates rise, the demand for Sukuk decrease and vice versa. Furthermore, Sukuk with longer maturity and lower profit rates are more susceptible to interest rate movements.

Sukuk are subject to interest rate fluctuations with longer maturity and lower profit rates Sukuk being more susceptible to such interest rate movements. To address the interest rate risk, we will seek to diversify the fund’s portfolio into Sukuk with varying maturity periods.

Issuer Risk


Country Risk

This risk refers to changes and developments in regulations, politics and the economy of the country. The investments may be affected by uncertainties in the investing country such as domestic political developments, restrictions on foreign investment and currency repatriation, changes in governmental policies, changes in taxation and other developments in the laws and regulations. In addition, the reduced availability of public information, the legal infrastructure and the lack of uniform accounting, auditing and financial reporting standards or otherregulatorypracticesandrequirementsmayreducethedegreeofinvestorprotection afforded. Some of the securities may also be subjected to government taxes or incur higher custodian expenses which may reduce the yield on such securities.

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Concentration Risk

This is the risk of a fund focusing a greater portion of its assets in a smaller selection of investments. The fall in price of a particular fixed income investment will have a greater impact on the funds and thus greater losses. This risk may be minimised by the manager conducting even more rigorous fundamental analysis before investing in each security.



Inflation Risk




Credit / Default Risk

Bonds are subject to credit/default risk in the event that the issuer of the instrument is faced with financial difficulties, which may decrease their credit worthiness. This in turn may lead to a default in the payment of principal and interest.

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System Control


Other Info

Target Market

For participants with low to moderate risk horizon and medium to long term investment horizon.





• PruBSNmay suspend unit pricing and certificate transaction if any of theexchanges in which the fund is invested is temporarily suspended for trading. In such event, written notice shall be given to participants of in force certificates.

Remarks:CRTS -TheCharlesRiverTradingSystemIFF -IslamicFinancialFacilityIPDS -IslamicPrivateDebtSecuritiesMBB -MalayanBankingBerhadNAV -NetAssetValueSACSC -ShariahAdvisoryCounciloftheSecuritiesCommissionGII -GovernmentIslamicIssue

FEATURES OF FUNDInvestment Objective

The Takafulink Dana Urus Fund seeks to maximize returns over medium to long-term by investing in Shariah-approved shares, IPDS and IFF through Takafulink Dana Ekuiti and Takafulink Dana Bon, and in any other such Takafulink funds that may become available in the future.

Investment Strategy & Approach• We believe our disciplined, valuation-driven investment style can generatesuperiorlong-termreturns.Weaimtoexploitopportunitiesatboththeassetallocation and securities selection levels through active in-house researchand portfolio management, with a focus on maximization of returns at an acceptable level of risks.

Pricing inefficiencies driven by irrational investor behavior can be successfully exploited through active in-house research and portfolio management.Successfulandsustainableexploitationofsecuritymis-pricing requires thedisciplinedapplicationofourvaluation-drivenapproach.Ourprocessseekstoeliminatethebehavioralbiasesthatleadtomis-pricinginthefirstinstance.

By imputing conservative assumptions to our earnings forecasts, ensures thatourin-housevaluationtargetisachievable,butatthesametimewearenot eliminating potential opportunities by taking calculated risk in periods of volatility that tend to be event driven.


• Invest in Shariah-approved shares, IPDS and IFF through Takafulink DanaEkuitiandTakafulinkDanaBon,andinanyothersuchTakafulinkfundsthatmay become available in the future.

Asset Al locationBetween70%to90%oftheassetswillbeinvestedinTakafulinkDanaEkuitiandbetween30%and10%oftheassetswillbeinvestedinTakafulinkDanaBon,assetsnotinvestedinthetwofundswillbeinvestedinShariah-compliantmoneymarket instruments.

Performance Benchmark• 70%KLSI+15%MBB1monthTier2IslamicDepositrate+15%3yearsGII.

• FurtherinformationonKLSIcanbeobtainedatBursaandBloombergwebsite.

• Further information on MBB 1 month Tier 2 Islamic Deposit rate can be obtainedatMaybank2Uwebsite.

• FurtherinformationonGIIcanbeobtainedatBankNegaraMalaysiawebsite.

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FEES & CHARGESFund Management Charge1.3%p.a



* 2007: 70% FBMSHA + 15% MBB 1 month Tier 2 Islamic Deposit rate + 15% 3 years GII. 2008 & 2009 Benchmark: 80% FBMSHA + 20% MBB 1 month Tier 2 Islamic Deposit rate. 2010 Benchmark: 70% KLSI + 15% MBB 1 month Tier 2 Islamic Deposit rate + 15% 3 years GII.








= NAV* For Year n

%NAV* For Year n-1


YearTakafulink Dana Urus

Benchmark

2010 15.39% 13.56%

2009 29.17% 34.02%

2008 -29.14% -35.97%

2007 29.21% 30.22%

2006 N/A N/A

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RISKMarket Risk

This risk refers to changes and developments in regulations, politics and the economy of the country. The very nature of investing in a fund, however, helps mitigatetheriskbecauseafundwouldgenerallyholdawell-diversifiedportfolioof securities from different market sectors that the collapse of any one security or any one market sector would not impact too greatly on the value of the fund.

Liquidity Risk

Liquidity refers to the ease of converting an investment into cash withoutincurring an overly significant loss in value. If a fund has a large portfolio of stocks issuedbysmallercompanies, the relatively less liquidnatureof thosestocks can cause the value of the fund to drop; this is because there are generally less ready buyers of such stocks as compared with the stocks of larger and more established companies. Should there be negative developments on any of the issuers, thiswill increase liquidity riskof theparticularsecurity.This isbecause there are generally less ready buyers of such securities as the fear of a credit default increases. The risk is managed by taking greater care in stock and security selection and diversification.

Interest Rate Risk

InterestrateriskisageneralriskaffectingShariah-basedfunds.ThisissoeventhoughShariah-basedfundsonlyinvestininvestmentsthatareinaccordancewithShariahrequirements.Thereasonforthisisbecauseahighlevelofinterestrates will inevitably affect corporate profits and this will have an impact on the valueofbothequityanddebtsecurities.

This risk is crucial in a bond fund since bond portfolio management depends on forecasting interest rate movements. Prices of bonds move inversely to interest rate movements therefore as interest rates rise, the prices of bonds decrease and vice versa. Furthermore, bonds with longer maturity and lower profit rates are more susceptible to interest rate movements.

Stock Risk or Isuer Risk


Country Risk

This risk refers to changes and developments in regulations, politics and the economy of the country. The investments may be affected by uncertainties in the investing country such as domestic political developments, restrictions on foreign investment and currency repatriation, changes in governmental policies, changes in taxation and other developments in the laws and regulations. In addition, the reduced availability of public information, the legal infrastructure and the lack of uniform accounting, auditing and financial reporting standards or

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otherregulatorypracticesandrequirementsmayreducethedegreeofinvestorprotection afforded. Some of the securities may also be subjected to government taxes or incur higher custodian expenses which may reduce the yield on such securities.



Concentration Risk

This is the risk of a fund focusing a greater portion of its assets in a smaller selection of investments. The fall in price of a particular fixed income investment will have a greater impact on the funds and thus greater losses. This risk may be minimised by the manager conducting even more rigorous fundamental analysis before investing in each security.



Inflation Risk





Bonds are subject to credit/default risk in the event that the issuer of the instrument is faced with financial difficulties, which may decrease their credit worthiness. This in turn may lead to a default in the payment of principal and interest.

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Reclasification of Shariah Status Risk




System Control


Other Info

Target Market

Participants with moderate to high tolerance and medium to long investment horizon.





• PruBSNmay suspend unit pricing and certificate transaction if any of theexchanges in which the fund is invested is temporarily suspended for trading. In such event, written notice shall be given to participants of inforce certificates.

Remarks:CRTS -TheCharlesRiverTradingSystemFBMSHA -FTSEBursaMalaysiaEmasShariahIndexIFF -IslamicFinancialFacilityIPDS -IslamicPrivateDebtSecuritiesMBB -MalayanBankingBerhadNAV -NetAssetValueSACSC -ShariahAdvisoryCounciloftheSecuritiesCommissionGII -GovernmentInvestmentIssueKLSI -KualaLumpurSyariahIndex

FEATURES OF FUND


The Takafulink Dana Ekuiti Dinasti Fund aims to provide long-term capital appreciation by investing in Shariah-compliant investments with exposure to the Greater China region.

Investment Strategy & Approach• PFMBemploysadisciplined,valuation-driveninvestmentstylewiththeaimtogeneratesuperiorlong-termreturns.Intheemergingmarketswheremajorityof asset markets are not reasonably efficient, sufficient pricing inefficiencies do exist to make active portfolio management worthwhile. Asset prices are driven by fundamentals, and deviations from the equilibrium representShariah-compliant investment opportunities. Our aim is to exploit theseperiodicopportunitiesatShariah-compliantstockselectionlevel,focusingonvalue investing to achieve profit maximization whilst minimizing risk.

PFMBundertakesadisciplinedapproachofconsistentlymonitoringShariah-compliant stocks and the implementation of a systematic process of identifying potentialgems,supportedbyan in-houseresearchteam,whichgiveusanaddedadvantageinouraimtogeneratesuperiorlong-termreturns.

By imputing conservative assumptions to our earnings forecasts, we ensure thatourin-housevaluationtargetisachievable,butatthesametimewearenot eliminating potential opportunities by taking calculated risk in periods of volatility that tend to be event driven.

Whereappropriateandshouldopportunityarise,suchasexpectedliquiditysurges, we may selectively adopt an active trading strategy for the purpose of enhancingreturns.Thismayentailusingaportionofthefundforshort-termtrading.

• ThefundseekstoachieveitsobjectivebyinvestingprimarilyinthePrudentialDinasti Equity Fund managed by Prudential Fund Management Berhad(PFMB). The Prudential Dinasti Equity Fund in turn invests in Shariah-compliantequitiesandequity-relatedsecuritiesofcompaniesbased in theGreaterChinaregionwhichpotentiallyofferattractivelong-termvalue.Theseinclude Shariah-compliant securities of Greater China-based companieslisted or to be listed on recognised exchanges of the People’s Republic of China, Hong Kong, Taiwan and other administrative regions managed by the People’sRepublicofChina,aswellasShariah-compliantsecuritiesofotherrecognised exchanges which include but not limited to recognised exchanges in Malaysia, Singapore and United States of America.

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Thefundmayminimizepotentialequitydownsideriskbyinvestingthebalanceof the fund’s NAV not invested in Shariah-compliant equities and equity-related securities into Islamic financial instruments which include sukuk, Islamic debentures and Islamic money market instruments such as American DepositoryReceiptsandGlobalDepositoryReceiptsaswellasShariah-basedliquidassets.

Inorder to achieve itsobjective, the fundwill invest at least 70%of itsNAVin Shariah compliant equities and equity-related securities. In the event theinvestment of the fund in Shariah-compliant equities and equities-relatedsecuritiesfallbelow70%,weshalltakethenecessaryactionstomaintaintheaforesaid allocation within reasonable time. The remaining of the NAV of the fund notinvestedinShariah-compliantequitiesandequity-relatedsecuritieswillbeinvested in Islamic financial instruments including but not limited to sukuk and Islamicdebentures,Islamicmoneymarketinstruments,Shariah-baseddepositorShariah-basedliquidassets/cash,IslamicderivativesandIslamicstructuredproducts.

The fundwillmainly be adopting a bottom-up Shariah-compliant investmentapproach, with no benchmark constraint.

At the initial stages as the fund size is growing, for efficiency consideration the Manager may adopt a less active approach when managing the fund. This mayincludehavingthefund’sShariahequityinvestmentonlyinaselectionofShariah-compliant stocks from the benchmark. Islamic derivatives (such asIslamic futures contracts or options) may still be used to achieve the objectives.

OtherthanShariah-compliantstockslistedintheGreaterChinaregionsuchasPeople’s Republic Of China, Special Administrative Regions (Hong Kong and Macau),andTaiwan,thefundhastheflexibilitytopickShariah-compliantstocksofGreaterChina-basedcompanieslistedinotherrecognisedexchanges.Thisincludes but not limited to Malaysia, Singapore and United States of America.

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Aset Allocation• TheTakafulinkDanaEkuitiDinastiFundwill feedupto100%intothePRUDinastiEquityFund.

• At least 70%of the PRUDinasti Equity Fund’sNAV to be invested in theShariah-compliantequitiesandequity-relatedsecurities.

• TheremainingoftheNAVofthefundnotinvestedinShariah-compliantequitiesandequity-relatedsecuritieswillbeinvestedinIslamicfinancialinstruments.

Performance Benchmark• DowJonesIslamicMarketGreaterChinaIndex.

• FurtherinformationonbenchmarkcanbeobtainedatBloombergwebsite


FEES & CHARGES


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YearTakafulink

Dana Ekuiti DinastiBenchmark

2010 9.41% 8.61%

2009 N/A N/A

2008 N/A N/A

2007 N/A N/A

2006 N/A N/A









= NAV* For Year n

%NAV* For Year n-1


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RISKSMarket Risk

This risk refers to potential losses that may arise from changes in the market prices of the investments. The changes may be specific to the individual security or its issuer or factors affecting all securities traded in the market or a combination of all. It may be caused by various factors among others are movement of interest rates, volatility of the stocks, foreign exchange rates and share prices. A Shariah-based fund with a well-diversified portfolio ofShariahcompliant securities from different geographical areas and sectors helps mitigatethisrisksothatthecollapseofanyoneShariah-compliantsecurityorany one geographical or sector area would not impact too greatly on the value of the fund.

Liquidity Risk

Liquidity refers to theeaseofconvertingaShariah-compliant investment intocashwithoutincurringanoverlysignificantlossinvalue.IfaShariah-basedfundhasalargeportfolioofShariah-compliantstocksissuedbysmallercompanies,therelativelylessliquidnatureofthoseShariah-compliantstockscancausethevalue of the fund to drop; this is because there are generally less ready buyers of suchShariah-compliantstocksascomparedwiththeShariah-compliantstocksof larger and more established companies. The risk is managed by choosing Shariah-compliantstockswithbetterliquidity.

Interest Rate Risk

Interest rate risk is a general risk affecting Shariah-based funds. The reasonfor this is because a high level of interest rates will inevitably affect corporate profits, dampen investments and aggregate demand leading to an economic slowdown.Thiswillhavean impacton thevalueofShariah-compliantequityand demand for sukuk. Investment in Islamic money market instruments may also be subject to unanticipated rise in interest rate. Sukuk are subject to interest rate fluctuations with longer maturity and lower profit rates sukuk being more susceptible to such interest rate movements. In general, the demand for sukuk moves inversely with interest rate movements, therefore, demand for sukuk falls when interest rate rise and vice versa. To address the interest rate risk, we will seek to diversify the fund’s portfolio into sukuk with varying maturity periods.

Stock Risk or Isuer Risk


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Currency Risk

This risk is associated with Shariah-compliant investments denominated inforeign currencies. The NAV of the fund will be lower if the foreign currency in which the Shariah compliant securities are denominated moves unfavourably against Ringgit Malaysia.

Operational Risk

The performance of the fund depends on the proper functioning of our systems and processes, both internal and external. An unforeseen disruption of such systems and processes, including that resulting from a market disruption or system interruption, may result in a delay in transactions involving the fund, which may in turn have an unfavourable effect on the performance of the fund. We will be prepared for, and have the necessary resources to manage, any internal operational issues arising from this investment, including receipt of principal and returns.

Country Risk

This risk refers to the risk of investing in foreign markets which subjects the fund to changes and developments in regulations, politics and the economy of the country. The investments may be affected by uncertainties in the investing country such as currency fluctuations, international political developments, restrictions on foreign investment and currency repatriation, changes in governmental policies, changes in taxation policies and other developments in the laws and regulations of countries. In addition, the reduced availability of public information, the legal infrastructure and the lack of uniform accounting, auditing and financial reporting standards or other regulatory practices and requirementsmayreducethedegreeofinvestorprotectionafforded.

SomeoftheShariah-compliantsecuritiesmayalsobesubjectedtogovernmenttaxes or incur higher custodian expenses which may reduce the yield on such Shariah-compliantsecurities.InvestinginemergingmarketssuchasthePeople’sRepublic of China subjects the fund to higher political risks, regulatory risks andliquidityrisksthaninvestmentsindevelopedmarkets.Suchsecuritiesaretherefore, in general, more volatile than those of developed countries, with the resultthatunitsinthefundsinvestinginShariah-compliantsecuritiesofemergingmarkets such as this fund may be subject to greater price volatility. Investing in developed markets in the Greater China region such as Hong kong as well as investing in Shariah-compliant securities of Greater China-based companieslisted in other markets such as Singapore and Unites States of America may mitigate this risk.

Political and/or Regulatory Risks

The value of the assets of the fund may be affected by uncertainties such as international political developments, changes in government policies, changes in taxation policies, restrictions on foreign investment and currency repatriation, currency fluctuations and other developments in the laws and regulations

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of countries in which an investment may be made. Furthermore, the legal infrastructure and accounting, auditing and reporting standards in certain countries in which an investment may be made may not provide the same degree of investor protection or information to investors as would generally applyinmajorequitymarkets.Foreignownershiprestrictionsinsomemarketsmay mean that corporate action entitlements in relation to the fund are invested into may not always be secured or may be restricted.

Islamic Derivative Risk

Islamic derivatives involve risks that are different from and may be greater than traditionalShariah-compliantsecurities investmentsandit ispossiblethatthevolatilityoftheNAVofaShariah-basedfundmaybehighwhenthefundinvestsmorethan30%ofitsNAVinIslamicderivatives.SomeoftherisksassociatedwithIslamicderivativesaremarketrisk,managementrisk,creditriskandliquidityrisk. As such, it is essential that investments in Islamic derivatives be monitored closely. In this case, a limit has been set in order to mitigate this risk. Islamic structured products may contain one or more embedded Islamic derivatives, including Islamic options. The value of such options depends on a variety of market factors, including movements in the underlying reference index, the variability or volatility of such index, interest rate levels, foreign exchange rates and other factors. In particular, the investor should be aware that the value of the option may not necessarily change in constant proportion to changes in the underlying reference index. Further, options by their nature will tend to decline in value over time, assuming that all other market factors remain unchanged. These factors affecting the value of the option will also be reflected in the value of the investment in which it is embedded.

Portfolio Risk

The fund is intended for investors who can accept the risks associated with investing primarily in the Shariah-compliant securities with exposure to theGreaterChinaRegion.InvestorsinShariah-compliantequitieswillbesubjecttotherisksassociatedwithShariah-compliantequityandequity-relatedsecuritiesin the said region, including fluctuations in market prices, adverse issuer or market information and the fact that Shariah-compliant equities and equity-related interests are subordinate in the right of payment to other corporate Shariah-compliantsecurities,includingsukuk.

Likewise, investors will be subject to the risks associated with sukuk, including creditandinterestraterisk,andtheadditionalrisksassociatedwithhigh-yieldsukuk, participations and Islamic derivative securities. In addition, investors shouldbeawareoftherisksassociatedwiththeactivemanagementtechniquesthat are expected to be employed by the Manager. An investment in the fund does not constitute a complete Shariah-compliant investment program.Investors may wish to complement an investment in the fund with other types of investments.

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Counterparty Risk

The fund will be exposed to credit risk on the counterparties with which it trades, such as the possibility of the insolvency, bankruptcy or default of a counterparty with which the fund trades, which could result in losses to the fund. Investing ininstrumentsissuedbycounterpartywithaminimumcreditratingofAA3andP2orequivalentratingbyrecognizedcreditratingsagenciesinMalaysiaoranyother internationally recognized ratings helps mitigate this risk.

Prepayment & Commitment Risk

Islamic structured product is designed as a hold-to-maturity investment.Therefore, the early redemption amount may be lesser than the principal amount originallyinvestedorpartthereof,inthecaseofpartialredemptions.Anyrequestto restructure the Islamic structured product, if agreed by the issuer, is effectively an early redemption by the fund. The full amount that would have been received isusedtoenterintoanewShariah-compliantinvestmentonsuchtermsthatareapplicable to the new investment. Such amount may factor in all accrued profit due (if any), losses due to market movements, break costs and other losses incurred in discharging a related hedging or other arrangements made in the design of the Islamic structured products.


Shariah-compliantinvestmentsaresubjecttocredit/defaultriskintheeventthatthe issuer of the instrument is faced with financial difficulties, which may decrease their credit worthiness. This in turn may lead to a default in the payment of principal and profit and ultimately a reduction in the value of funds. We manage this risk by setting minimum level of credit rating and regularly monitor the rating of the issuer.


The risk refers to the risk that currently held Shariah-compliant securities inthe portfolio of Shariah-based fundsmay be reclassified to be Shariah non-compliant in the periodic review of the securities by the SACSC, the Shariah Advisor or the Shariah Boards of the relevant Islamic indices. If this occurs, the value of the fund may be adversely affected where the Manager will take the necessary steps to dispose of such securities in accordance with the advice from the SACSC, the Shariah Advisor and/or the Shariah Board of the relevant Islamic indices.


Potential risks are taken into consideration in the process of stock selection basedonanalysisonvariouskeyfactorssuchaseconomicconditions,liquidity,qualitativeandquantitativeaspectsofthestock.

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System Control

Risk parameters are set internally for each fund, which are generally more stringent than the limits imposed by Security Commission. These risk parameters include limits of issuer bet, group issuer, sector rating and issue size of the securities held in the portfolio. CRTS is in place to monitor portfolio risks, serving as an auto filter for any limitations or breaches.

Other Info

Target Market

Participants with high risk tolerance and long term investment horizon and wish to have exposure to Greater China region.





• PruBSNmay suspend unit pricing and certificate transaction if any of theexchanges in which the Underlying Fund invests in is temporarily suspended for trading. In such event, written notice shall be given to participants of in force certificates.

• PruBSNmay suspend unit pricing and certificate transaction if PrudentialFundManagementBerhadsuspendssubscription to thePrudentialDinastiEquityFund.

Remarks:CRTS -TheCharlesRiverTradingSystemNAV -NetAssetValueSACSC -ShariahAdvisoryCounciloftheSecuritiesCommission

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www.prubsn.com.my

Prudential BSN Takaful Berhad (740651-H)Level8A,MenaraPrudential,No.10,JalanSultanIsmail,50250KualaLumpur.

Tel:03-20537188Fax:03-20726188Email: [email protected]

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Takafulink Fund Fact Sheet