MASTER PROSPECTUS (SHARIAH-COMPLIANT FUNDS)
Investments that stand
the test of time
Manager
:
CIMB-Principal Asset Management Berhad (304078-K)
Trustees
:
AmanahRaya Trustees Berhad (766894-T)
Deutsche Trustees Malaysia Berhad (763590-H)
Maybank 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 2014 and expires on 29 June 2015 and incorporates the following
16 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 Al-Azzam Equity
Fund (constituted on 1 August 2012), 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).
Sukuk & 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
:
DISCLAIMER
:
on 2 June 2009) and CIMB Islamic Global Commodities Equity Fund (constituted on 6 January 2010).
INVESTORS ARE ADVISED TO READ AND UNDERSTAND THE CONTENTS OF THE MASTER PROSPECTUS
(SHARIAH-COMPLIANT FUNDS). 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 28.
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 longterm financial goals. We have a comprehensive selection of regional and global funds including various asset classes such as
equity, mixed asset, money market and Sukuk. With the positive development in Islamic fund management, investments in Shariahcompliant 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. A Management Fee and a Trustee Fee will also be chargeable to the Funds. For other
fees and charges, please refer to the “Fees, Charges and Expenses” chapter of this Master Prospectus (Shariah-compliant 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 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
Munirah binti Khairuddin
Chief Executive
ABOUT THIS DOCUMENT
This is a Master Prospectus (Shariah-compliant Funds) that introduces you to CIMB-Principal Asset Management Berhad (“CIMBPrincipal”) and its diverse range of Shariah-compliant Funds comprising equity funds, mixed asset funds, sukuk 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 2015, 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.
Prospectus Date
Expiry Date
7
30 June 2014
29 June 2015
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 authorised the Funds and a copy of this Master Prospectus (Shariah-compliant Funds)
has been registered with the Securities Commission Malaysia.
The authorisation, and the 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 of the Funds 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 AlAzzam Equity 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, CIMB Islamic Deposit Fund, CIMB Islamic Asia Pacific Equity Fund, CIMB Islamic Greater
China Equity 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 ................................................................ 28
GENERAL RISKS OF INVESTING IN UNIT TRUST
FUNDS........................................................................... 28
SPECIFIC RISKS ASSOCIATED WITH THE
INVESTMENT PORTFOLIO OF THE FUNDS ............... 29
FUNDS’ DETAILED INFORMATION ................................. 40
SECTION 1: EQUITY FUNDS ........................................ 41
1.1 CIMB ISLAMIC DALI EQUITY GROWTH FUND .... 41
1.2 CIMB ISLAMIC DALI EQUITY FUND ..................... 42
1.3 CIMB ISLAMIC DALI EQUITY THEME FUND ........ 43
1.4 CIMB ISLAMIC AL-AZZAM EQUITY FUND ............ 44
1.5 CIMB ISLAMIC EQUITY FUND .............................. 45
1.6 CIMB ISLAMIC EQUITY AGGRESSIVE FUND ...... 46
1.7 CIMB ISLAMIC SMALL CAP FUND........................ 47
SECTION 2: MIXED ASSET FUNDS ............................. 48
2.1 CIMB ISLAMIC BALANCED FUND ........................ 48
2.2 CIMB ISLAMIC BALANCED GROWTH FUND ....... 50
SECTION 3: SUKUK & MONEY MARKET FUNDS ........ 51
3.1 CIMB ISLAMIC ENHANCED SUKUK FUND .......... 51
3.2 CIMB ISLAMIC SUKUK FUND ............................... 52
3.3 CIMB ISLAMIC MONEY MARKET FUND ............... 53
3.4 CIMB ISLAMIC DEPOSIT FUND ............................ 54
SECTION 4: REGIONAL & GLOBAL FUNDS ................ 55
4.1 CIMB ISLAMIC ASIA PACIFIC EQUITY FUND ...... 55
4.2 CIMB ISLAMIC GREATER CHINA EQUITY FUND 56
4.3 CIMB ISLAMIC GLOBAL COMMODITIES EQUITY
FUND ............................................................................. 57
FOREIGN MARKET ADMISSION REQUIREMENTS .... 59
AUTHORISED INVESTMENTS ..................................... 60
INVESTMENT RESTRICTIONS AND LIMITS ................ 62
VALUATION OF AUTHORISED INVESTMENTS .......... 63
FINANCING ................................................................... 64
SECURITIES LENDING ................................................. 64
SHARIAH INVESTMENT GUIDELINES ......................... 65
FUNDS’ PERFORMANCE ................................................. 68
AVERAGE TOTAL RETURNS ....................................... 68
ANNUAL TOTAL RETURNS .......................................... 69
FUNDS‟ PERFORMANCE AGAINST BENCHMARK ..... 70
DISTRIBUTIONS ........................................................... 73
PORTFOLIO TURNOVER RATIO (“PTR”) ..................... 76
ASSET ALLOCATION .................................................... 78
HISTORICAL HIGHLIGHTS OF THE FUNDS ................... 81
FINANCIAL STATEMENT OF THE FUNDS ................... 81
TOTAL ANNUAL EXPENSES ........................................ 86
MANAGEMENT EXPENSE RATIO (“MER”) .................. 87
FEES, CHARGES AND EXPENSES ................................. 88
CHARGES ..................................................................... 88
FEES AND EXPENSES ................................................. 89
AUTODEBIT / STANDING INSTRUCTION .................... 91
REBATES AND SOFT COMMISSIONS ......................... 91
TRANSACTION INFORMATION ....................................... 92
UNIT PRICING ............................................................... 92
TRANSACTION DETAILS .............................................. 94
INVESTING .................................................................... 94
WITHDRAWALS ............................................................ 96
MINIMUM BALANCE ..................................................... 97
COOLING-OFF PERIOD ................................................ 97
SWITCHING................................................................... 97
TRANSFER FACILITY ................................................... 98
DISTRIBUTIONS OF THE FUNDS ................................ 99
UNCLAIMED MONIES ................................................. 100
THE MANAGER .............................................................. 101
ABOUT CIMB-PRINCIPAL ASSET MANAGEMENT
BERHAD ...................................................................... 101
SUMMARY OF THE FINANCIAL POSITION OF THE
COMPANY ................................................................... 101
KEY PERSONNEL ....................................................... 102
THE INVESTMENT COMMITTEE ................................ 103
THE BOARD OF DIRECTORS .................................... 105
KEY MEMBERS OF THE INVESTMENT TEAM .......... 108
MATERIAL LITIGATION AND ARBITRATION ............. 108
THE SUB-MANAGERS ................................................... 109
CIMB-PRINCIPAL ASSET MANAGEMENT (S)
PTE. LTD. .....................................................................109
SCHRODER INVESTMENT MANAGEMENT
(SINGAPORE) LTD. .....................................................110
SHARIAH ADVISER OF THE FUNDS .............................111
CIMB ISLAMIC BANK BERHAD ...................................111
THE TRUSTEES ..............................................................114
AMANAHRAYA TRUSTEES BERHAD .........................114
AMTRUSTEE BERHAD ................................................115
DEUTSCHE TRUSTEES MALAYSIA BERHAD ...........116
HSBC (MALAYSIA) TRUSTEE BERHAD .....................118
MAYBANK TRUSTEES BERHAD ................................120
UNIVERSAL TRUSTEE (MALAYSIA) BERHAD ...........122
WHAT ARE THE ROLES, DUTIES AND
RESPONSIBILITIES OF THE TRUSTEES? .................123
TRUSTEES‟ STATEMENT OF RESPONSIBILITY .......123
EXEMPTIONS OR VARIATIONS .................................123
MATERIAL LITIGATION AND ARBITRATION ..............123
SALIENT TERMS OF DEEDS .........................................126
RIGHTS OF UNIT HOLDERS.......................................126
LIABILITIES AND LIMITATION OF UNIT HOLDERS ...126
MAXIMUM FEES AND CHARGES PERMITTED BY THE
DEEDS .........................................................................127
EXPENSES PERMITTED BY THE DEEDS ..................130
RETIREMENT, REMOVAL OR REPLACEMENT OF THE
MANAGER ...................................................................130
POWER OF THE MANAGER TO REMOVE OR
REPLACE THE TRUSTEES .........................................131
RETIREMENT OR REMOVAL OR REPLACEMENT OF
THE TRUSTEES ..........................................................131
POWER OF THE TRUSTEES TO REMOVE OR
REPLACE THE MANAGER ..........................................131
TERMINATION OF THE FUNDS ..................................131
MEETINGS OF UNIT HOLDERS .................................132
APPROVALS AND CONDITIONS ...................................133
RELATED-PARTY TRANSACTIONS AND CONFLICT OF
INTEREST .......................................................................134
POTENTIAL CONFLICTS OF INTERESTS AND
RELATED PARTY TRANSACTIONS ...........................134
INTERESTS IN THE FUNDS........................................134
EMPLOYEES‟ SECURITIES DEALINGS .....................134
TAXATION REPORT .......................................................135
ADDITIONAL INFORMATION .........................................140
INVESTORS SERVICES ..............................................140
ANTI-MONEY LAUNDERING POLICIES AND
PROCEDURES ............................................................141
DISTRIBUTION CHANNELS WHERE UNITS CAN BE
PURCHASED OR REDEEMED ....................................141
CONSENT ........................................................................142
DOCUMENTS AVAILABLE FOR INSPECTION ..............143
DISTRIBUTORS OF THE FUNDS ...................................144
DISCLAIMER ...................................................................146
APPENDIX I – FINANCING FOR INVESTMENT IN UNIT
TRUST RISK DISCLOSURE STATEMENT .....................147
DEFINITIONS
Except where the context otherwise requires, the following definitions shall apply throughout this Master Prospectus (Shariahcompliant Funds):
AmTB
-
AmTrustee Berhad (163032-V).
Application Fee
-
Preliminary charge on each investment.
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 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. This information will be
communicated to the Unit holders via CIMB-Principal‟s website at http://www.cimbprincipal.com.my. Alternatively, Unit holders can contact our Customer Care Centre at 037718 3100.
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 (304078-K).
CIMB-Principal (S)
-
CIMB-Principal Asset Management (S) Pte. Ltd. (200607208K).
CIS
-
Collective Investment Scheme.
CMSA
-
Capital Markets and Services Act 2007.
CWA
-
Refers to the agency force of CIMB-Principal.
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.
Deposit
-
Refers to placement of fixed deposit with licensed Islamic financial institution with maturities
ranging anywhere from one (1) day to one (1) year, being 365 days or 366 days in the event
of a leap year.
Distributors
-
Any relevant persons and bodies appointed by CIMB-Principal from time to time, who are
responsible for selling units of the Funds.
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.
EPF
-
Employees Provident 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
Refers to CIMB-Principal Funds which are segregated into four different sections:
-
SECTION 1: EQUITY FUNDS
CIMB Islamic DALI Equity Growth Fund
CIMB Islamic DALI Equity Fund
CIMB Islamic DALI Equity Theme Fund
CIMB Islamic Al-Azzam Equity Fund
CIMB Islamic Equity Fund
CIMB Islamic Equity Aggressive Fund
1
DALI
DALI2
DALI3
Azzam
IEF
IEAF
CIMB Islamic Small Cap Fund
ISCF
SECTION 2: MIXED ASSET FUNDS
CIMB Islamic Balanced Fund
CIMB Islamic Balanced Growth Fund
IBF
IBGF
SECTION 3: SUKUK & MONEY MARKET FUNDS
CIMB Islamic Enhanced Sukuk Fund
CIMB Islamic Sukuk Fund
CIMB Islamic Money Market Fund
CIMB Islamic Deposit Fund
SECTION 4: REGIONAL & GLOBAL FUNDS
CIMB Islamic Asia Pacific Equity Fund
CIMB Islamic Greater China Equity Fund
CIMB Islamic Global Commodities Equity Fund
IESF
ISF
IMMF
IDF
IAPEF
IGCEF
ICEF
FYE
-
Financial year end.
HSBCT
-
HSBC (Malaysia) Trustee Berhad (1281-T).
GDP
-
Gross Domestic Product.
GII
-
Government Investment Issues.
IDC
-
Interactive Data Corporation.
IOSCO
-
International Organization of Securities Commissions. For further details, please refer to
http://www.iosco.org.
IUTAs
-
Institutional Unit Trust Advisers.
Latest Practicable Date or LPD
-
30 April 2014, in which all information provided herein, shall remain current and relevant as
at such a date.
Long-term
-
Refers to a period of five (5) years or more.
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.
Master Prospectus (Shariahcompliant Funds)
-
Refers to the disclosure document issued by the fund manager describing the details of the
Funds.
Medium-term
-
Refers to a period of three (3) years.
Moody‟s
-
Moody‟s Investors Service.
MTB
-
Maybank 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 GII Medium Index
-
An index developed by Quant Shop Pty. Ltd. For further details, please refer to
http://www.quantshop.com.
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.
SAC
-
Shariah Advisory Council.
SC
-
Securities Commission Malaysia.
SC Guidelines
-
Guidelines on Unit Trust Funds issued by the SC and as may be amended and/or updated
from time to time.
Shariah
-
Islamic law, originating from the Qur'an (the holy book of Islam), and its practices and
explanations rendered by the Prophet Muhammad (pbuh) and ijtihad of ulamak (personal
effort by qualified Shariah scholars to determine the true ruling of the divine law on matters
whose revelations are not explicit).
2
Short-term
-
Refers to a period of one (1) year or less.
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.
Sub-Manager
-
A fund management company/asset management company that assumes all/or part of the
investment function role of the Manager.
Sukuk
-
Refers to certificates of equal value which evidence undivided ownership or investment in
the assets using Shariah principles and concepts endorsed by the SAC..
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.
UK
-
United Kingdom.
Unit holder
-
The registered holder for the time being of a unit of the Fund including persons jointly so
registered.
USA
-
United States of America.
USD
-
United States Dollar.
UTMB
-
Universal Trustee (Malaysia) Berhad (17540-D).
Withdrawal Fee
-
A charge levied upon redemption under certain terms and conditions (if applicable).
Note:
Unless the context otherwise requires, words importing the singular number should include the plural number and vice versa.
Reference to “days” in this Master Prospectus (Shariah-compliant Funds) will be taken to mean calendar days unless otherwise
stated.
3
CORPORATE DIRECTORY
Pedro Esteban Borda
Raja Noorma binti Raja Othman
Fad‟l bin Mohamed*
Munirah binti Khairuddin
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
* Independent director
** Alternate director to Raja Noorma binti Raja Othman
#
Alternate director to Luis Eduardo Valdes Illanes
Investment Committee
The business address for CIMB-Principal will at a later
date be relocated to:
Raja Noorma binti Raja Othman
Mohamad Safri bin Shahul Hamid
Kim Teo Poh Jin*
Fad‟l bin Mohamed*
Wong Fook Wah*
Bangunan CIMB
Jalan Semantan
Damansara Heights
50490 Kuala Lumpur
Tel: (03) 2084 8888
* Independent member
Audit Committee
The effective date for the relocation will be announced in
CIMB-Principal‟s website i.e. www.cimb-principal.com.my.
Alternatively, Unit holders may contact Customer Care at
(03) 7718 3000 to enquire on the effective date. However,
there is no change to the Customer Care telephone number.
Wong Joon Hian*
Fad‟l bin Mohamed*
Raja Noorma binti Raja Othman
* Independent member
Penang office
Level 4, Menara BHL
51, Jalan Sultan Ahmad Shah
10050 Pulau Pinang MALAYSIA
Tel: (04) 227 2177
Company Secretaries
Datin Rossaya Mohd Nashir (LS 0007591)
Halimah binti Habib (LS 0007999)
13th Floor, Menara CIMB
Jalan Stesen Sentral 2
Kuala Lumpur Sentral
50470 Kuala Lumpur Malaysia
Tel: (03) 2261 8888
Kuching office
Level 6, Wisma STA
26, Jalan Datuk Abang Abdul Rahim
93450 Kuching Sarawak MALAYSIA
Tel: (082) 330 033
Shariah Adviser of the Funds
CIMB Islamic Bank Berhad (671380-H)
Registered address
13th Floor, Menara CIMB
Jalan Stesen Sentral 2
Kuala Lumpur Sentral
50470 Kuala Lumpur Malaysia
Tel: (03) 2261 8888
Business address
Level 34, Menara Bumiputra-Commerce
11, Jalan Raja Laut
50350 Kuala Lumpur MALAYSIA
Tel: (03) 2619 1188
Fax: (03) 2691 3513
Postal address
CIMB-Principal Asset Management Berhad
PO Box 10571
50718 Kuala Lumpur MALAYSIA
Registered address
13th Floor, Menara CIMB
Jalan Stesen Sentral 2
Kuala Lumpur Sentral
50470 Kuala Lumpur Malaysia
Tel: (03) 2261 8888
Customer Care Centre
50, 52 & 54 Jalan SS 21/39
Damansara Utama
47400 Petaling Jaya Selangor MALAYSIA
Tel: (03) 7718 3100
Fax: (03) 7718 3003
Sub-Managers
Sub-Manager for IAPEF, DALI2, IEF, IBF & IGCEF
CIMB-Principal Asset Management (S) Pte. Ltd.
(200607208K)
Website
http://www.cimb-principal.com.my
Business/Registered address
50 Raffles Place
#22-03A Singapore Land Tower
SINGAPORE 048623
Tel: (65) 6210 8488
E-mail
service@cimb-principal.com.my
Board of Directors
Tengku Dato‟ Zafrul bin Tengku Abdul Aziz
Luis Eduardo Valdes Illanes
Nor Azzam Abdul Jalil
Dato‟ Anwar bin Aji*
Wong Joon Hian*
Ned Alan Burmeister#
A.Huzaime Bin Dato‟ Abdul Hamid*
Auyeung Rex Pak Kuen
Badlisyah bin Abdul Ghani**
Sub-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
4
Registered address
5th Floor, Bangunan CIMB
Jalan Semantan, Damansara Heights
50490 Kuala Lumpur MALAYSIA
Tel: (03) 2084 8888
Fax: (03) 2093 3720
The Trustees
Trustee for Azzam, IEF, IEAF & ISF
AmanahRaya Trustees Berhad (766894-T)
Business address
Tingkat 2, Wisma TAS
No. 21, Jalan Melaka
50100 Kuala Lumpur MALAYSIA
Tel: (03) 2036 5000/5129
Fax: (03) 2072 0322
http://www.artrustees.com.my
Trustee for DALI2, ISCF and IBF
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
Registered address
Tingkat 11, Wisma AmanahRaya
No. 2, Jalan Ampang
50508 Kuala Lumpur MALAYSIA
Tel: (03) 2055 7388
Delegate of Universal Trustee (Malaysia) Berhad
(Local custodian)
Citibank Berhad (as custodian)
Delegates of AmanahRaya Trustees Berhad
for IEF
Citibank NA (Singapore) Branch
Business /Registered address
Level 45, Menara Citibank
165, Jalan Ampang
50450 Kuala Lumpur, Malaysia
Tel: 603 2383 8585
Business address
8, Marina View, #16-00 Asia Square Tower 1
SINGAPORE 018960
Tel: (65) 6657 5610 (GL) or 6657 5440
Fax: (65) 6657 5658
http://www.citibank.com
Delegate of Universal Trustee (Malaysia) Berhad
for IBF & DALI2
Citibank NA (Singapore) Branch
Business address
8, Marina View, #16-00 Asia Square Tower 1
SINGAPORE 018960
Tel: (65) 6657 5610 (GL) / 6657 5440
Fax: (65) 6657 5658
http://www.citibank.com
Registered address
#16-00 Asia Square Tower 1
SINGAPORE 018960
Trustee for DALI, DALI3 & IMMF
AmTrustee Berhad (163032-V)
Registered address
#16-00 Asia Square Tower 1
SINGAPORE 018960
Business address
15th Floor, Menara AmFirst
1, Jalan 19/3
46300 Petaling Jaya Selangor MALAYSIA
Tel: (03) 7954 6862
Fax: (03) 7954 3712
http://www.ambankgroup.com
Trustee for the IBGF
Maybank Trustees Berhad (5004-P)
Business/Registered address
8th Floor, Menara Maybank
100, Jalan Tun Perak
50050 Kuala Lumpur MALAYSIA
Tel: (03) 2078 8363
http://www.maybank2u.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)
Delegate of Maybank Trustees Berhad
Malayan Banking Berhad (3813-K) (as custodian) (Maybank
Custody Services)
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
Business/Registered address
14th Floor, Menara Maybank
100, Jalan Tun Perak
50050 Kuala Lumpur MALAYSIA
Tel: (03) 2074 7111
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)
Trustee for 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
Business address
Level 7, Wisma Amanah Raya Berhad
Jalan Semantan, Damansara Heights
50490 Kuala Lumpur MALAYSIA
Tel: (03) 2084 8888
Fax: (03) 2093 3157
Delegate of Deutsche Trustees Malaysia Berhad
(Local & Foreign custodian)
Deutsche Bank (Malaysia) Berhad (312552-W)
5
Registered address
Level 18, Menara IMC
8, Jalan Sultan Ismail
50250 Kuala Lumpur MALAYSIA
Tel: (03) 2053 6788
Solicitors
Soon Gan Dion & Partners
1st Floor, 73 Jalan SS21/1A
Damansara Utama
47400 Petaling Jaya Selangor MALAYSIA
Tel: (03) 7726 3168
Fax: (03) 7726 3445
Business address
Levels 18-20, Menara IMC
8, Jalan Sultan Ismail
50250 Kuala Lumpur MALAYSIA
Tel: (03) 2053 6788
Principal Banker
CIMB Bank Berhad
Menara Bumiputra-Commerce
11, Jalan Raja Laut
50350 Kuala Lumpur MALAYSIA
Trustee for IESF, IDF, IAPEF & IGCEF
HSBC (Malaysia) Trustee Berhad (1281-T)
Business/Registered address
13th Floor, Bangunan HSBC, South Tower,
No 2, Leboh Ampang,
50100 Kuala Lumpur MALAYSIA
Tel: (03) 2075 7800
Fax: (03) 2026 1273
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
Malaysia (FiMM)
Investment
Managers
19-06-1, 6th Floor, PNB Damansara
19, Lorong Dungun
Damansara Heights
50490 Kuala Lumpur MALAYSIA
Tel: (03) 2093 2600
E-mail: info@fimm.com.my
http://www.fimm.com.my
Auditors of the Manager and of the Funds
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
6
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
Page
Fund Category / Type
Equity (Shariah-compliant) / Growth.
Investment objective
To achieve consistent capital growth over the medium to long-term.
41
Benchmark
FTSE Bursa Malaysia EMAS Shariah Index.
41
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
or by local rating agency(ies) of the country; “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.
41
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.
Principal risks
Stock specific risk.
Investor profile
The recommended investment timeframe for this Fund is three (3) years or
more. This Fund is suitable for investors who:




29
have a medium-term to long-term investment horizon;
want a portfolio of investments that adhere to Shariah principles;
want a diversified portfolio that includes Shariah-compliant equities and
Sukuk; and/or
seek capital appreciation over medium-term to long-term.
Trustee
AmTrustee Berhad.
115
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.
99
Launch date
7 May 1998.
Financial year-end
31 May.
7
CIMB Islamic DALI Equity Fund
Page
Fund Category / Type
Equity (Shariah-compliant) / Growth.
Investment objective
To achieve a consistent capital growth over the medium to long-term.
42
Benchmark
70% FTSE Bursa Malaysia EMAS Shariah Index + 30% Dow Jones Islamic
Market Asia Pacific ex Japan Index.
42
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 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 aim to provide growth but may also invest in other Shariahcompliant investments, such as Sukuk with a minimum credit rating of “A3”
or “P2” by RAM or equivalent rating by MARC or by local rating agency(ies)
of the country; “BBB” by S&P or equivalent rating by Moody‟s or Fitch. The
Fund may opt to invest in Shariah-compliant foreign equities up to a
maximum of 30% of its NAV. Such foreign equities must be equity
securities of companies domiciled in, listed in and/or have significant
operations in countries in the Asia Pacific ex Japan. „Significant operations‟
means major businesses of the company. For example, the Fund can
invest in a company with significant business and/or operations in Thailand
but listed on the New York Stock Exchange. The threshold for „significant
operations‟ would be if more than 30% of total group revenue derives from
countries in Asia Pacific ex Japan. The calculation would be based on the
most recent financial reports released by the companies (e.g. interim and
annual reports). 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.
42
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.
Principal risks
Stock specific risk, country risk, currency risk and risk of investing in
emerging markets.
Investor profile
The recommended investment timeframe for this Fund is three (3) years or
more. This Fund is suitable for investors who:





29
have a medium-term to long-term investment horizon;
want a portfolio of investments that adhere to Shariah principles;
want a diversified portfolio that includes Shariah-compliant equities and
Sukuk;
want a portfolio with some exposure in foreign investments; and/or
seek capital appreciation over medium-term to long-term.
Sub-Manager (foreign portion)
CIMB-Principal (S).
109
Trustee
Universal Trustee (Malaysia) Berhad.
122
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.
99
Launch date
30 April 2003.
Financial year-end
31 May.
8
CIMB Islamic DALI Equity Theme Fund
Page
Fund Category / Type
Equity (Shariah-compliant) / Growth.
Investment objective
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.
43
Benchmark
FTSE Bursa Malaysia EMAS Shariah Index.
43
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.
43
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.
Principal risks
Stock specific risk and sector risk.
Investor profile
The recommended investment timeframe for this Fund is three (3) years or
more. This Fund is suitable for investors who:





30
have a medium-term to long-term investment horizon;
want a portfolio of investments that adhere to Shariah principles;
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
seek capital appreciation over medium-term to long-term.
Trustee
AmTrustee Berhad.
115
Distribution policy
Given its investment objective, the Fund is not expected to pay any
distribution.
99
Launch date
28 February 2008.
Financial year-end
30 November.
9
CIMB Islamic Al-Azzam Equity Fund
Page
Fund Category / Type
Equity (Shariah-compliant) / Growth.
Investment objective
The Fund aims 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 seeks to achieve its objective by investing a minimum of 70%
and up to 98% of its NAV in Shariah-compliant Malaysian equities. The
fund manager may also invest up to 30% of the Fund‟s NAV in other
Shariah-compliant investments, such as Sukuk, and Shariah-compliant
liquid assets, with at least 2% of the Fund‟s NAV maintained in the form of
Shariah-compliant liquid assets such as Islamic money market instruments
and/or Shariah-compliant Deposits for liquidity purpose. For this Fund, the
investment in Sukuk must satisfy 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.
44
Principal risks
Stock specific risk, liquidity risk, credit (default) and counterparty risk and
interest rate risk*.
30
Investor profile
This Fund is suitable for investors who:

have a medium-term to long-term investment horizon;

want a portfolio of investments that adhere to Shariah principles;

want a diversified portfolio that includes Shariah-compliant equities
and Sukuk; and/or

seek capital appreciation over medium-term to long-term.
Trustee
AmanahRaya Trustees Berhad.
114
Distribution policy
Given its investment objective, the Fund is not expected to pay any
distribution. However, distribution, if any, will be incidental and will vary
from period to period depending on the interest rates*, market conditions
and the performance of the Fund.
99
Launch date
1 August 2012.
Financial year-end
28 February.
*Note: 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 investments of the Fund.
10
CIMB Islamic Equity Fund
Page
Fund Category / Type
Equity (Shariah-compliant) / Growth.
Investment objective
To provide investors with long-term capital growth by investing principally in
equities. The Fund also seeks to outperform the benchmark.
45
Benchmark
50% FTSE Bursa Malaysia EMAS Shariah Index + 50% Dow Jones Islamic
Market Asia Pacific ex Japan Index.
45
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 Shariah-compliant foreign equities up to a
maximum of 50% of its NAV. Such foreign equities must be equity
securities of companies domiciled in, listed in, and/or have significant
operations in countries in Asia Pacific ex Japan. „Significant operations‟
means major businesses of the company. For example, the Fund can
invest in a company with significant business and/or operations in Thailand
but listed on the New York Stock Exchange. The threshold for „significant
operations‟ would be if more than 30% of total group revenue derives from
countries in Asia Pacific ex Japan. The calculation would be based on the
most recent financial reports released by the companies (e.g. interim and
annual reports). In addition, Shariah-compliant liquid assets may be
strategically used if the fund 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 a diversified portfolio of Shariah-compliant
stocks that aims to outperform the market at different cycles of the market.
45
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 Shariahcompliant liquid assets.
Principal risks
Stock specific risk, country risk, currency risk and risk of investing in
emerging markets.
Investor profile
The recommended investment timeframe for this Fund is five (5) years or
more. This Fund is suitable for investors who:






31
have a long-term investment horizon;
want a portfolio of investments that adhere to Shariah principles;
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
seek capital appreciation over long-term.
Sub-Manager (foreign portion)
CIMB-Principal (S).
109
Trustee
AmanahRaya Trustees Berhad.
114
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.
99
Launch date
8 October 2004.
Financial year-end
31 October.
11
CIMB Islamic Equity Aggressive Fund
Page
Fund Category / Type
Equity (Shariah-compliant) / Growth.
Investment objective
To earn reasonable returns for investors by investing in approved equities
listed on Bursa Malaysia as well as unlisted securities and other noninterest bearing assets acceptable under Shariah principles.
46
Benchmark
FTSE Bursa Malaysia EMAS Shariah Index.
46
Investment policy and principal
investment strategy
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 is 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.
46
Principal risks
Stock specific risk.
32
Investor profile
The recommended investment timeframe for this Fund is five (5) years or
more. This Fund is suitable for investors who:





have a long-tem investment horizon;
want a portfolio of investments that adhere to Shariah principles;
do not require regular income from their investment;
can accept that investment returns may fluctuate significantly over the
short-term and may even be negative; and/or
seek capital appreciation over long-term.
Trustee
AmanahRaya Trustees Berhad.
114
Distribution policy
Distribution (if any) is expected to be distributed every January at the
Manager‟s discretion.
99
Launch date
15 June 1995.
Financial year-end
31 December.
12
CIMB Islamic Small Cap Fund
Page
Fund Category / Type
Equity (small cap) (Shariah-compliant) / Growth.
Investment objective
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.
47
Benchmark
FTSE Bursa Malaysia Small Cap Index.
47
Investment policy and principal
investment strategy
The Fund may invest a minimum of 70% and up to a maximum of 98% of
its NAV in Shariah-compliant stocks of emerging companies*. The
investment policy and strategy of the Fund will therefore focus on
investments in Shariah-compliant securities of such emerging companies*
with potential growth and hands-on management policies but may be
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 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.
47
Between 70% to 98% (both inclusive) of the Fund‟s NAV will be invested in
Shariah-compliant equities and/or other Shariah-compliant investments,
with at least 2% of the Fund‟s NAV in Shariah-compliant liquid assets.
Note:
*Emerging companies in this context refers to companies that are listed on
Bursa Malaysia with market capitalization of up to three (3) billion Ringgit
Malaysia at the point of purchase.
Principal risks
Stock specific risk and liquidity risk.
Investor profile
The recommended investment timeframe for this Fund is three (3) years or
more. This Fund is suitable for investors who:




32
have a medium-term to long-term investment horizon;
want a portfolio of investments that adhere to Shariah principles;
want to diversify their overall investment portfolio by including shares as
an asset class, in particular, shares of emerging companies*; and/or
seek capital appreciation over medium-term to long-term.
Note:
*Emerging companies in this context refers to companies that are listed on
Bursa Malaysia with market capitalization of up to three (3) billion Ringgit
Malaysia at the point of purchase.
Trustee
Universal Trustee (Malaysia) Berhad.
122
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.
99
Launch date
30 April 2003.
Financial year-end
31 May.
13
FUND INFORMATION – MIXED ASSET FUNDS
CIMB Islamic Balanced Fund
Page
Fund Category / Type
Balanced (Shariah-compliant) / Growth & Income.
Investment objective
To achieve medium to long-term growth in both capital and income by
investing in permissible Shariah-compliant investments.
48
Benchmark
30% FTSE Bursa Malaysia EMAS Shariah Index + 30% Dow Jones Islamic
Market Asia Pacific ex Japan Index + 40% CIMB Islamic 1-month General
Investment Account-i (GIA).
48
Note: The benchmark is customised as such to align it closer to the
structure of the portfolio and the objective of the Fund. The 1-Month
General Investment Account Rate is reflective of the objective of the Fund.
Thus, investors are cautioned that the risk profile of the Fund is higher than
investing in Shariah-compliant deposits.
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 is 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 or by local rating agency(ies) of the country;
“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. The Fund
may opt to invest in Shariah-compliant foreign equities up to a maximum of
30% of its NAV. Such foreign equities must be of equity securities of
companies domiciled in, listed in, and/or have significant operations in
countries in Asia Pacific ex Japan. „Significant operations‟ means major
businesses of the company. For example, the Fund can invest in a
company with significant business and/or operations in Thailand but listed
on the New York Stock Exchange. The threshold for „significant operations‟
would be if more than 30% of total group revenue derives from countries in
Asia Pacific ex Japan. The calculation would be based on the most recent
financial reports released by the companies (e.g. interim and annual
reports).
48
Principal risks
Stock specific risk, credit (default) and counterparty risk, interest rate risk*,
country risk, currency risk and risk of investing in emerging markets.
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-term to long-term investment horizon;
 want a portfolio of investments that adhere to Shariah principles;
 want a diversified portfolio with preference to higher Shariah-compliant
equity exposure;
 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.
Sub-Manager (foreign portion)
CIMB-Principal (S).
109
Trustee
Universal Trustee (Malaysia) Berhad.
122
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.
99
Launch date
8 March 2001.
Financial year-end
30 September.
*Note: 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 investments of the Fund.
14
CIMB Islamic Balanced Growth Fund
Page
Fund Category / Type
Balanced (Shariah-compliant) / Growth & Income.
Investment objective
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.
50
Benchmark
60% FBM EMAS Shariah Index + 40% CIMB Islamic 1-Month General
Investment Account-i (GIA).
50
Note: The benchmark is customised as such
structure of the portfolio and the objective of
General Investment Account Rate is reflective of
Thus, investors are cautioned that the risk profile
investing in Shariah-compliant deposits.
to align it closer to the
the Fund. The 1-Month
the objective of the Fund.
of the Fund is higher than
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 is 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 or by local
rating agency(ies) of the country; “BBB” by S&P or equivalent rating by
Moody‟s or Fitch. At least 2% of the Fund‟s NAV will be invested in Shariahcompliant liquid assets.
50
Principal risks
Stock specific risk, credit (default) and counterparty risk and interest rate
risk*.
33
Investor profile
The recommended investment timeframe for this Fund is five (5) years or
more. This Fund is suitable for investors who:





have a long-term investment horizon;
want a portfolio of investments that adhere to Shariah principles;
seek capital appreciation with income being secondary;
want a diversified portfolio with preference to higher Shariah-compliant
equity exposure; 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
Maybank Trustees Berhad.
120
Distribution policy
Distribution (if any) is expected to be distributed every January at the
Manager‟s discretion^.
99
Launch date
26 May 2003.
Financial year-end
31 December.
*Note: 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 investments of the Fund.
^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 – SUKUK & MONEY MARKET FUNDS
CIMB Islamic Enhanced Sukuk Fund
Page
Fund Category / Type
Sukuk / Income.
Investment objective
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.
51
Benchmark
85% CIMB Islamic 1-Month General Investment Account-i (GIA) + 15%
FBM EMAS Shariah Index.
51
Note: The benchmark is customised as such
structure of the portfolio and the objective of
General Investment Account Rate is reflective of
Thus, investors are cautioned that the risk profile
investing in Shariah-compliant deposits.
to align it closer to the
the Fund. The 1-Month
the objective of the Fund.
of the Fund is higher than
Investment policy and principal
investment strategy
A minimum of 70% 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 or by local rating agency(ies) of the country;
“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 to 10% of its NAV may be invested in warrants of
Shariah-compliant companies. At least 2% the Fund‟s NAV in Shariahcompliant liquid assets. The investment strategy and policy of the Fund is
biased towards Shariah-compliant fixed income investments that aims to
provide consistency in income, while allowing some exposure in Shariahcompliant equities and warrants that aim to provide the added return in a
rising market.
51
Principal risks
Stock specific risk, credit (default) and counterparty risk, interest rate risk*,
risks associated with investment in warrants and/or options and risk of
investing in emerging markets.
34
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-term to long-term investment horizon;
want a portfolio of investments that adhere to Shariah principles;
want a diversified portfolio of investments that includes Sukuk;
seek for a less volatile asset class with some exposure to Shariahcompliant equities;
seek capital appreciation over medium-term to long-term; and/or
can accept that returns may fluctuate over the short-term.
Trustee
HSBC (Malaysia) Trustee Berhad.
118
Distribution policy
Distribution (if any) is expected to be distributed annually at the Manager‟s
discretion^.
99
Launch date
23 February 2005.
Financial year-end
31 March.
*Note: 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 investments of the Fund.
^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
Page
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.
52
Benchmark
Quantshop GII Medium Index.
52
Investment policy and principal
investment strategy
A minimum of 70% 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 or by local rating agency(ies) of the country;
“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 of Sukuk,
and aims to provide a steady stream of income from the profit of Sukuk.
52
Principal risks
Credit (default) and counterparty risk, interest rate risk* and risk of investing
in emerging markets.
35
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-term to long-term investment horizon;
 want a portfolio of investments that adhere to Shariah principles;
 want a diversified portfolio of Shariah-compliant fixed income securities;
 want to receive a regular income* stream and maintain the value of
their investment over medium-term to long-term; and/or
 look for a less volatile investment but can accept that returns may
fluctuate over the short-term.
*All distributions (if any) 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 using the normal rounding policy # to two
decimal places), unless written instructions to the contrary are
communicated by you to the Manager. No Application Fee is payable for
the reinvestment.
Note:
#
A normal rounding in this context means to round the number of units to
the nearest two decimal places. When the value of the third decimal place
is 4 or less, it will be rounded down and when the value of the third decimal
place is 5 or more, it will be rounded up.
Trustee
AmanahRaya Trustees Berhad.
114
Distribution policy
Distribution (if any) is expected to be distributed annually, depending on the
performance of the Fund and at the Manager‟s discretion.
99
Launch date
8 October 2004.
Financial year-end
31 August.
*Note: 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 investments of the Fund.
17
CIMB Islamic Money Market Fund
Page
Fund Category / Type
Money Market (Shariah-compliant) / Income.
Investment objective
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.
53
Benchmark
CIMB Islamic 1-Month General Investment Account-i (GIA).
53
Note: The benchmark is customised as such to align it closer to the
structure of the portfolio and the objective of the Fund. The 1-Month
General Investment Account Rate is reflective of the objective of the Fund.
Thus, investors are cautioned that the risk profile of the Fund is higher than
investing in Shariah-compliant deposits.
Investment policy and principal
investment strategy
The Fund will place at least 90% of its NAV in 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, 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
and low risk short-term investments for 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
be tantamount to a change in this investment strategy.
53
Note:
*The Fund is neither a capital guaranteed fund nor a capital protected fund.
Principal risks
Credit (default) and counterparty risk and interest rate risk*
Investor profile
The recommended investment timeframe for this Fund is one (1) year or
more. The Fund is suitable for investors who:
 want to invest the cash portion of an investment portfolio; and/ or
 want to “park” money aside while waiting to make another investment
it is also suitable for investors who:
 have either a short-term or medium-term investment horizon;
 want a portfolio of investments that adhere to Shariah principles;
 desire a stream of income; and/or
 seek preservation of capital* and flexibility in investment.
36
Note:
*The Fund is neither a capital guaranteed fund nor a capital protected fund.
Trustee
AmTrustee Berhad.
115
Distribution policy
Monthly, depending on the level of income (if any) the Fund generates.
99
Launch date
17 March 2008.
Financial year-end
30 November.
*Note: 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 investments of the Fund.
18
CIMB Islamic Deposit Fund
Page
Fund Category / Type
Money Market (Shariah-compliant) / Income.
Investment objective
Aims to provide investors with liquidity and regular income, whilst
maintaining capital stability by investing primarily in deposits that comply
with the Shariah principles.
54
Benchmark
Islamic Interbank Overnight Rate.
54
Note: The benchmark is customised as such to align it closer to the
structure of the portfolio and the objective of the Fund. The Islamic
Interbank Overnight Rate is reflective of the objective of the Fund. Thus,
investors are cautioned that the risk profile of the Fund is higher than
investing in Shariah-compliant deposits.
Investment policy and principal
investment strategy
The Fund seeks to achieve its objective by investing at least 95% of its
NAV in Shariah-compliant Deposits. 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
for capital preservation*.
54
The Fund will be actively managed to provide liquidity and to accommodate
the short-term cash flow requirements of its Unit holders.
Note:
*The Fund is neither a capital guaranteed fund nor a capital protected fund.
Principal risks
Credit (default) and counterparty risk.
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 preservation of capital* and flexibility in investment; and/or
 want to set money aside while waiting to make another investment.
36
Note:
*The Fund is neither a capital guaranteed fund nor a capital protected fund.
Trustee
HSBC (Malaysia) Trustee Berhad.
118
Distribution policy
Monthly, depending on the level of income (if any) the Fund generates.
99
Launch date
9 September 2009.
Financial year-end
31 January.
19
FUND INFORMATION – REGIONAL & GLOBAL FUNDS
CIMB Islamic Asia Pacific Equity Fund
Page
Fund Category / Type
Equity (Shariah-compliant) / Growth.
Investment objective
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.
55
Benchmark
Dow Jones Islamic Market Asia Pacific ex Japan Index.
55
Investment policy and principal
investment strategy
The Fund is predominantly an equity fund which invests through equity
securities of companies domiciled in, listed in, and/or have significant
operations 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. „Significant operations‟ means
major businesses of the company. For example, the Fund can invest in a
company with significant business and/or operations in Thailand but listed
on the New York Stock Exchange. The threshold for „significant operations‟
would be if more than 30% of total group revenue derives from countries in
the emerging and developed markets of Asia Pacific ex Japan. The
calculation would be based on the most recent financial reports released by
the companies (e.g. interim and annual reports). Between 70% to 98%
(both inclusive) of its NAV can be invested in Shariah-compliant equities,
Shariah-compliant warrants, Shariah-compliant options or other Shariahcompliant 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 or by local rating agency(ies) of the country; “BB” by S&P or
equivalent rating by Moody‟s or Fitch.
55
Principal risks
Stock specific risk, country risk, currency risk, risks associated with
investment in warrants and/or options and counterparty risk.
37
Investor profile
The recommended investment timeframe for this Fund is five (5) years or
more. This Fund is suitable for investors who:
 have a long-term investment horizon;
 want a portfolio of investments that adhere to the Shariah principles;
 want a well diversified portfolio of Asia Pacific ex Japan regional
equities; and/or
 seek capital appreciation over long-term.
Sub-Manager (foreign portion)
CIMB-Principal (S).
109
Trustee
HSBC (Malaysia) Trustee Berhad.
118
Distribution policy
Regular distributions are not the focus of this Fund. Distributions, if any, are
at the discretion of the Manager.
99
Launch date
2 June 2006.
Financial year-end
30 April.
20
CIMB Islamic Greater China Equity Fund
Page
Fund Category / Type
Equity (Shariah-compliant) / Growth.
Investment objective
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.
56
Benchmark
Dow Jones Islamic Market China/Hong Kong Titans Index.
56
Investment policy and principal
investment strategy
The Fund seeks to achieve its objective by investing in Shariah-compliant
equities and Shariah-compliant equity related securities of companies
domiciled in, listed in, and/or have significant operations in countries in the
Greater China region which offer medium-term to long-term growth
potential in capital appreciation. „Significant operations‟ means major
businesses of the company. For example, the Fund can invest in a
company with significant business and/or operations in the People‟s
Republic of China but listed on the New York Stock Exchange. The
threshold for „significant operations‟ would be if more than 30% of total
group revenue derives from countries in the Greater China region. The
calculation would be based on the most recent financial reports released by
the companies (e.g. interim and annual reports). These include Shariahcompliant companies listed or to be listed on recognised exchanges of the
People‟s Republic of China, Hong Kong SAR and Taiwan. The Fund will
focus on companies which have the potential to participate in the growth of
the Greater China region.
56
The Fund will generally have Shariah-compliant 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.
Principal risks
Stock specific risk, country risk, repatriation risk, regulatory risk, currency
risk, liquidity risk and counterparty risk.
Investor profile
The recommended investment timeframe for this Fund is at least three (3)
years. The Fund is suitable for investors who:



37
want a Shariah-compliant investment;
wish to participate in the growth potential of the Greater China markets;
and/or
seek capital appreciation over medium-term to long-term.
Sub-Manager
CIMB-Principal (S).
109
Trustee
HSBC (Malaysia) Trustee Berhad.
118
Distribution policy
Given its investment objective, the Fund is not expected to pay any
distribution.
99
Launch date
2 June 2009.
Financial year-end
31 July.
21
CIMB Islamic Global Commodities Equity Fund
Page
Fund Category / Type
Equity (Shariah-compliant) / Growth.
Investment objective
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.
57
Benchmark
50% Dow Jones Islamic Market Oil & Gas Index + 50% Dow Jones Islamic
Market Basic Materials Index.
57
Note: The combination of indices for the above benchmark represents
the coverage of the investment universe and reflects the opportunity set for
the Fund.
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 conform to Shariah principles.
57
The Fund will invest at least 70% of its NAV in Shariah-compliant equities
and Shariah-compliant equity-related securities of companies that are
engaged in activities related to commodities. These companies would
include but are not limited to those in the sectors 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 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 are not limited to commodity exchange-traded funds
and commodity indices. 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 invest in
include, but are 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 UK and the USA.
Principal risks
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.
Investor profile
The recommended investment timeframe for this Fund is at least three (3)
years. The Fund best suits you if you:
 want a Shariah-compliant investment;


have a medium-term to long-term investment horizon;
want access to investment in commodities securities;


want to participate in the growth potential of the equity markets and the
commodities market;
seek diversification within an equity portfolio; and/or

seek capital appreciation over medium-term to long-term.
38
Sub-Manager
Schroder Investment Management (Singapore) Ltd.
110
Trustee
Deutsche Trustees Malaysia Berhad.
116
Distribution Policy
Given its investment objective, the Fund is not expected to pay any
distribution. Distributions, if any, will be incidental and will vary from period
to period depending on the performance of the Fund.
99
Launch Date
6 January 2010.
Financial year-end
30 September.
22
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.
CWA
IUTAs
(%)
(%)
CIMB Islamic DALI Equity Growth Fund
6.50
6.50
CIMB Islamic DALI Equity Fund
6.50
6.50
CIMB Islamic DALI Equity Theme Fund
6.50
6.50
CIMB Islamic Al-Azzam Equity Fund
6.50
5.50
CIMB Islamic Equity Fund
6.50
6.50
CIMB Islamic Equity Aggressive Fund
5.00
5.00
CIMB Islamic Small Cap Fund
6.50
6.50
CIMB Islamic Balanced Fund
6.50
6.50
CIMB Islamic Balanced Growth Fund
6.00
5.00
CIMB Islamic Enhanced Sukuk Fund
2.00
2.00
CIMB Islamic Sukuk Fund
2.00
2.00
CIMB Islamic Money Market Fund
Nil
Nil
CIMB Islamic Deposit Fund
Nil
Nil
CIMB Islamic Asia Pacific Equity Fund
5.00
5.00
CIMB Islamic Greater China Equity Fund
6.50
6.50
CIMB Islamic Global Commodities Equity
Fund
6.50
6.50
Maximum Application Fee
(% of the NAV per unit) *
Equity Funds
Mixed Asset Funds
Sukuk & Money Market Funds
Regional & Global Funds
*
Notwithstanding the maximum Application Fee disclosed above, investors may negotiate with the distributors for lower
charges. Please note that investors investing via EPF’s Members Investment Scheme will only be charged a maximum
Application Fee of 3.00% of the NAV per unit.
23
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
Switching Fee
(RM)
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. The Manager also
has the discretion to waive the
Switching Fee and/or administrative
fees. For details please refer to page
97.
Equity Funds
Mixed Asset
Funds
Nil.
Sukuk & Money
Market Funds
Regional & Global
Funds
Transfer Fee
(RM)
A maximum
of RM50.00
may
be
charged for
each transfer.
Other charges
payable directly
by investors
when purchasing
or redeeming
units
Any
applicable
bank charges and
other bank fees
incurred as a result
of an investment or
a redemption will
be borne by the
investor.
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.
This table describes the fees that you may indirectly incur when you invest in the Funds.
Maximum
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
custodi
an fee
Foreign
custodian
fee
CIMB Islamic DALI
Equity Growth Fund
1.50
0.06
Nil
Nil
CIMB Islamic DALI
Equity Fund
1.85
0.06
Nil
NOTE 3
CIMB Islamic DALI
Equity Theme Fund
1.50
0.07
NOTE 2
Nil
CIMB Islamic AlAzzam Equity Fund
1.50
0.05
Nil
Nil
CIMB Islamic
Equity Fund
1.50
0.06
Nil
NOTE 3
CIMB Islamic
Equity Aggressive
Fund
1.50
0.09
NOTE 2
Nil
CIMB Islamic Small
Cap Fund
1.85
0.06
Nil
Nil
CIMB Islamic
Balanced Fund
1.50
0.10
Nil
NOTE 3
CIMB Islamic
Balanced Growth
Fund
1.50
0.07
NOTE 2
Nil
Fund
expenses
[See
NOTE 4]
Other fees
payable
indirectly
by
investors
Commissions
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
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
Distributors who
provide ongoing
service to you.
Equity Funds
Mixed Asset Funds
24
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.
Maximum
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
custodi
an fee
Foreign
custodian
fee
Fund
expenses
[See
NOTE 4]
Other fees
payable
indirectly
by
investors
Commissions
As per
previous
page.
As per
previous
page.
As per previous
page.
Sukuk & Money Market Funds
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
0.03
NOTE 2
Nil
CIMB Islamic
Deposit Fund
0.45
0.04
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
CIMB
Islamic
Global
Commodities Equity
Fund
1.85
0.07*
NOTE 2
NOTE 3
Regional & Global Funds
* Subject to a minimum fee of RM12,000 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)
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 IAPEF, IGCEF & ICEF 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
- A dilution fee may be charged in relation to a Fund‟s applications for units in collective investment schemes managed
by other fund managers.
25
TRANSACTION INFORMATION
Minimum
initial
investment#
(RM)
Minimum
additional
investment#
(RM)
Minimum
withdrawal*
Minimum
balance
(units)
Regular Savings Plan (RSP)^
Minimum
Minimum additional
initial
investment#
#
investment
(RM)
(RM)
Equity Funds
CIMB Islamic DALI
RM200 or
500
200
250
500
200
Equity Growth Fund
200 units
CIMB Islamic DALI
RM200 or
500
200
250
500
200
Equity Fund
200 units
CIMB Islamic DALI
RM200 or
500
200
1,000
500
200
Equity Theme Fund
800 units
CIMB Islamic AlRM200 or
500
200
1,000
500
200
Azzam Equity Fund
800 units
CIMB Islamic Equity
RM200 or
500
200
500
500
200
Fund
400 units
CIMB Islamic Equity
RM200 or
500
200
250
500
200
Aggressive Fund
200 units
CIMB Islamic Small
RM200 or
500
200
500
500
200
Cap Fund
400 units
Mixed Asset Funds
CIMB Islamic
RM200 or
500
200
500
500
200
Balanced Fund
400 units
CIMB Islamic
RM200 or
500
200
500
500
200
Balanced Growth
400 units
Fund
Sukuk & Money Market Funds
CIMB Islamic
RM500 or
Enhanced Sukuk
2,000
500
1,000
2,000
500
500 units
Fund
CIMB Islamic Sukuk
RM500 or
2,000
500
1,000
2,000
500
Fund
500 units
CIMB Islamic Money
RM1,000 or
10,000
1,000
5,000
N/A
N/A
Market Fund
1,000 units
CIMB Islamic Deposit
10,000
1,000
RM1,000
5,000
10,000
1,000
Fund
Regional & Global Funds
CIMB Islamic Asia
RM200 or
500
200
500
500
200
Pacific Equity Fund
400 units
CIMB Islamic Greater
RM200 or
500
200
1,000
500
200
China Equity Fund
800 units
CIMB Islamic Global
RM200 or
500
200
1,000
500
200
Commodities Equity
800 units
Fund
#
For avoidance of doubt, the amount stipulated in the minimum initial investment and minimum additional investment includes
any applicable fees and charges, such as sales charge, as the case may be. In other words, the amount is gross of fees and
charges.
*
Whichever is higher in value (RM) or such other amount as the Manager may from time to time decide and any withdrawal is
subject to the minimum balance being maintained.
^
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 Distributor.
Note:

Currently the EPF does not allow withdrawals for investments into unit trust funds which have a foreign investment exposure.
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‟s 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‟s 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.
26
Minimum switching amount
Equity Funds
Mixed Asset
Funds
Sukuk & Money
Market Funds
Regional &
Global 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 96 - 97) to stay invested in that Fund. The
Manager may, at its absolute discretion, allow switching into
(or out of) a Fund.
Transfer facility
Cooling-off period
Transfer
of
unit
holdings is allowed
but this is subject to
conditions stipulated
in the respective
Deeds.
Six (6) Business Days
from the date the
application form is
received
and
accepted
by
the
Manager
or
Distributor from the
first time investor.
For details please
refer to page 97.
OTHER INFORMATION
DEEDS
This table describes the Deeds governing the Funds.
Deeds
Equity Funds
Mixed Asset
Funds
Sukuk & Money
Market Funds
Regional &
Global Funds
A Master Deed dated 15th May 2008, a First Supplemental Master Deed dated 26th May 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, a Thirteenth Supplemental Master Deed dated 23
February 2012, a Fourteenth Supplemental Master Deed dated 26 June 2012 and a Fifteenth Supplemental
Master Deed dated 21 September 2012.
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 service@cimbprincipal.com.my.
There are fees and charges involved and investors are advised to consider them before investing in the Funds.
All fees and charges payable to the Manager and/or the Fund are subject to any applicable taxes and/or duties as may be
imposed by the government or other authorities from time to time.
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 28.
Past performance of the Fund is not an indication of its future performance.
27
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).
Returns not guaranteed
Investors should be aware that by investing in a unit trust fund, there is NO GUARANTEE of any income distribution or capital
appreciation. In addition, there is a possibility that the investment objectives of the funds may not be achieved. However, the
manager mitigates this risk by ensuring diligent management of the assets of the funds based on their structured investment
process.
General market environment risk
Any purchase of securities will involve some elements of risk. Hence, a unit trust fund may be prone to changing market conditions
as a result of:

global, regional or national economic developments;

governmental policies or political conditions;

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.)
All these may result in uncertainties and fluctuations in the price of the securities of the funds‟ investment portfolio. Such
movements in the values of the securities will cause the net asset value or prices of units to fall or 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.
* Even though 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.
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. To mitigate all these specific security risks, the Manager performs 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. If a security encounters a liquidity crunch, the security
may need to be sold at unfavourable price. This in turn would depress the net asset value of the fund. The Manager 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 potential.
Inflation risk
Inflation is the risk that a unit trust fund‟s assets or income from a unit trust fund‟s investments may be worth less in the future as
inflation decreases the real value of money. As inflation increases, the real value of a fund‟s portfolio could decline. Inflation causes
the real rate of return to be lower than the nominal rate of return. This risk can be mitigated by investing in securities that can
provide a positive real rate of return.
Financing for investment in unit trust risk
If a financing is obtained to finance the purchases of units of any unit trust fund, investors will need to understand that:

obtain financing for investment in unit trust increase the amount of gains or losses;

in the event where units are being used as collateral, if the value of the investment falls below a certain level, investors may be
asked by the lender to top up the collateral or reduce the outstanding financing amount to the required level, failing which the
lender may take the necessary action (as may be provided for in the lending agreement) including the possibility of force
selling the investment;

the financing cost may vary over time depending on the fluctuations in profit rates/interest rates; and

the risks of using financing in lights of investors‟ investment objectives, attitude towards risk and financial circumstances
should be carefully assessed.
Financing For Investment In Unit Trust Risk Disclosure Statement Form annexed as Appendix I hereto sets out the risks in detail.
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
applicable laws, rules, regulations and deeds by the manager or its fund management delegate. The possibility of a breakdown in
the manager‟s or its fund management delegate‟s prescribed practices and internal policies and procedures are factors that may
lead to non-compliance. The breakdown may be the outcome from human error (for instance the oversight of a fund manager) or
system failure (causing unnecessary downtime). The amount of such risk and its impact on the fund and/or unit holders are
dependent on the nature and severity of the non-compliance. In order to mitigate this risk, CIMB-Principal has in place stringent
internal controls and compliance monitoring processes for all funds under its management.
28
Manager’s risk
The performance of any funds is dependent amongst others on the knowledge and investment techniques or processes adopted by
the manager and any lack of the above would have an adverse impact on the funds‟ performance thereby working to the detriment
of unit holders. Investors should also note that the quality of the fund‟s management is also affected by internal circumstances
within the management company such as operational and system matters. The manager seeks to reduce this manager‟s risk by
implementing a structured investment process, systematic operational procedures and processes along with stringent internal
control.
Reclassification of non Shariah-compliant 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 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. If the disposal of the non Shariah-compliant securities cause losses to the fund, the fund management
company must bear the losses by ensuring the loss portion be restored and returned to the fund.
*Note: In the context of this explanation, securities here does not refer to sukuk.
SPECIFIC RISKS ASSOCIATED WITH THE INVESTMENT PORTFOLIO OF THE FUNDS
There are specific risks associated with the investment portfolio of each fund which include but are not limited to the following:
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. In general, the value of a particular stock
fluctuates in response to activities of individual companies and in response to market conditions. The impact is however reduced as
the Fund invests in a wide portfolio of investments; thus, spreading the element of risk. Diversification can be achieved by investing
in various companies across different industries, sectors or even countries that are uncorrelated. In addition, the Manager will
undertake an active bottom-up investment approach to ensure that the fundamentals of the stocks invested in are favourable.
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. In general, the value of a particular stock
fluctuates in response to activities of individual companies and in response to market conditions. The impact is however reduced as
the Fund invests in a wide portfolio of investments, thus spreading the element of risk. Diversification can be achieved by investing
in various companies across different industries, sectors or even countries that are uncorrelated. In addition, the Manager will
undertake an active bottom-up investment approach to ensure that the fundamentals of the stocks invested in are favourable.
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 adverse changes in the country‟s economic fundamentals, social and political
stability, laws and regulations and foreign investments policies. These factors may have an adverse 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 e xposed 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 lower trading volumes 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.
We have obtained the necessary licenses/permits for investments in countries that require such licenses/permits e.g. the People‟s
Republic of China, India, Vietnam, South Korea and Republic of Taiwan. In the event that we are unable to obtain such
licenses/permits to invest in these countries or such licenses/permits to invest are then are revoked or not renewed, the Fund
manager would seek to invest in other accessible 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 the RM may therefore increase or 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.
29
Risk of investing in emerging markets
Investing in assets from the emerging markets generally entails a greater risk (potentially including considerable legal, economic
and political risks) than investing in assets from the markets of industrialized 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. In many cases,
political considerations have led to substantial economic and societal tensions, and in some cases these countries have
experienced both political and economic instability. Political or economic instability can influence investor confidence, which in turn
can have a negative effect on exchange rates and security prices in emerging markets. The exchange rates and the prices of
securities in the emerging markets are often extremely volatile. Changes to these security prices can be caused by interest rates,
changes to the balance of demand and supply, external forces affecting the market (especially in connection with important trading
partners), trade-related, tax-related or monetary policies, governmental policies as well as international political and economic
events.
In most cases, the securities markets in the emerging markets are still in their primary stage of development. Markets in emergingmarket countries are frequently characterized by illiquidity in the form of lower trading volumes of the listed securities. In
comparison with investments in the developed markets, securities in the emerging markets may face a higher risk of price drop and
increased volatility in the security prices which can lead to the potential for investors to reduce their exposure to investment in
securities in the emerging markets securities as compared to investment in securities of the developed markets. As such, investors
should bear in mind that investments in emerging markets are subject to higher price volatility and therefore will tend to have a
higher investment risk that will affect the Fund‟s growth. The Manager will attempt to mitigate all these risks through its active asset
allocation management and diversification, in addition to its continuous bottom up and top down research and analysis.
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. In general, the value of a particular stock
fluctuates in response to activities of individual companies and in response to market conditions. The impact is however reduced as
the Fund invests in a wide portfolio of investments, thus spreading the element of risk. Diversification can be achieved by investing
in various companies across different industries, sectors or even countries that are uncorrelated. In addition, the Manager will
undertake an active bottom-up investment approach to ensure that the fundamentals of the stocks invested in are favourable.
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 mitigate 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 Al-Azzam Equity Fund
Stock specific risk
Any irregular fluctuation of the value of a particular stock may affect the unit price. However, the Fund invests in different asset
classes and various sectors; thus reducing the portfolio risk through diversification.In addition, the Manager will undertake an active
bottom-up investment approach to ensure that the fundamentals of the stocks invested in are favourable.
Liquidity risk
Liquidity risk can be defined as the ease with which a security can be sold. If a security encounters a liquidity crunch, the security
may need to be sold at unfavourable price. This in turn would depress the NAV 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
purpose of the Fund, the Manager will continuously conduct research and analysis work to actively manage the asset allocations.
Credit (default) and counterparty risk
When the Fund invests in Sukuk and/or conducts OTC transactions, this may involve a certain degree of credit (default) and
counterparty risk with regards to the issuers and counterparties. Generally, credit (default) and counterparty risk is the risk of loss of
the investment amount as well as the returns on investment due to the issuers‟ or counterparties‟ non payment or untimely
payment. This may result in a credit downgrade which will cause a decline in value of the investment and subsequently depress the
NAV of the Fund. In addition, each counterparty and issuer that the Fund dealt with may issue a number of securities or a security
with different tranches. Each of these securities carries its own credit rating. Thus, the Fund may expose to varying degree of credit
(default) and counterparty risk given that each security or each tranche of the security has a different level of risk exposure. Usually
this risk is more apparent for an investment with a longer tenure, i.e. the longer the duration, the higher the credit (default) and
counterparty risk. Credit (default) and counterparty risk can be managed by performing continuous fundamental credit research and
analysis to ascertain the creditworthiness of its counterparties and/or issuers as well as the credit quality of their issues. 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 “A3” or “P2” by RAM or equivalent rating by MARC; “BBB” by S&P or equivalent rating by
Moody‟s or Fitch.
The Fund‟s placements of Shariah-compliant Deposits are subject to credit (default) and counterparty risk. This is the risk of loss of
the investment amount as well as the returns on investment due to the counterparty‟s non payment or untimely payment. 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 bottom up and top down credit research and analysis to determine the creditworthiness of
its counterparty, and impose investment limits on exposures for counterparties with different credit profiles as a precautionary step
to limit any loss that may arise directly or indirectly as a result of a defaulted transaction.
30
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 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 benchmarked against the
interest rates. As such, investment in Sukuk will have an exposure to the movement of the 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.
1.5 CIMB Islamic Equity Fund
Stock specific risk
Any irregular fluctuation of the value of a particular stock may affect the unit price. In general, the value of a particular stock
fluctuates in response to activities of individual companies and in response to market conditions. The impact is however reduced as
the Fund invests in a wide portfolio of investments, thus spreading the element of risk. Diversification can be achieved by investing
in various companies across different industries, sectors or even countries that are uncorrelated. In addition, the Manager will
undertake an active bottom-up investment approach to ensure that the fundamentals of the stocks invested in are favourable.
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 adverse changes in the country‟s economic fundamentals, social and political
stability, laws and regulations and foreign investments policies. These factors may have an adverse 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 e xposed 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 lower trading volumes 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.
We have obtained the necessary licenses/permits for investments in countries that require such licenses/permits e.g. the People‟s
Republic of China, India, Vietnam, South Korea and Republic of Taiwan. In the event that we are unable to obtain such
licenses/permits to invest in these countries or such licenses/permits to invest are then are revoked or not renewed, the Fund
manager would seek to invest in other accessible 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 the RM may therefore increase or 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.
Risk of investing in emerging markets
Investing in assets from the emerging markets generally entails a greater risk (potentially including considerable legal, economic
and political risks) than investing in assets from the markets of industrialized 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. In many cases,
political considerations have led to substantial economic and societal tensions, and in some cases these countries have
experienced both political and economic instability. Political or economic instability can influence investor confidence, which in turn
can have a negative effect on exchange rates and security prices in emerging markets. The exchange rates and the prices of
securities in the emerging markets are often extremely volatile. Changes to these security prices can be caused by interest rates,
changes to the balance of demand and supply, external forces affecting the market (especially in connection with important trading
partners), trade-related, tax-related or monetary policies, governmental policies as well as international political and economic
events.
In most cases, the securities markets in the emerging markets are still in their primary stage of development. Markets in emergingmarket countries are frequently characterized by illiquidity in the form of lower trading volumes of the listed securities. In
comparison with investments in the developed markets, securities in the emerging markets may face a higher risk of price drop and
increased volatility in the security prices which can lead to the potential for investors to reduce their exposure to investment in
securities in the emerging markets securities as compared to investment in securities of the developed markets. As such, investors
should bear in mind that investments in emerging markets are subject to higher price volatility and therefore will tend to have a
higher investment risk that will affect the Fund‟s growth. The Manager will attempt to mitigate all these risks through its active asset
allocation management and diversification, in addition to its continuous bottom up and top down research and analysis.
31
1.6 CIMB Islamic Equity Aggressive Fund
Stock specific risk
Any irregular fluctuation of the value of a particular stock may affect the unit price. In general, the value of a particular stock
fluctuates in response to activities of individual companies and in response to market conditions. The impact is however reduced as
the Fund invests in a wide portfolio of investments, thus spreading the element of risk. Diversification can be achieved by investing
in various companies across different industries, sectors or even countries that are uncorrelated. In addition, the Manager will
undertake an active bottom-up investment approach to ensure that the fundamentals of the stocks invested in are favourable.
1.7 CIMB Islamic Small Cap Fund
Stock specific risk
Any irregular fluctuation of the value of a particular stock may affect the unit price. In general, the value of a particular stock
fluctuates in response to activities of individual companies and in response to market conditions. The impact is however reduced as
the Fund invests in a wide portfolio of investments, thus spreading the element of risk. Diversification can be achieved by investing
in various companies across different industries, sectors or even countries that are uncorrelated. In addition, the Manager will
undertake an active bottom-up investment approach to ensure that the fundamentals of the stocks invested in are favourable.
Liquidity risk
Liquidity risk is defined as the ease with which a security can be sold. There is additional liquidity risk when investing in this Fund
as it invests in smaller capitalised companies that are listed on Bursa Malaysia. The disposal of such securities may take a longer
time as there are generally less ready buyers 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 the Manager may need to dispose such securities at unfavourable price. 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. In general, the value of a particular stock
fluctuates in response to activities of individual companies and in response to market conditions. The impact is however reduced as
the Fund invests in a wide portfolio of investments, thus spreading the element of risk. Diversification can be achieved by investing
in various companies across different industries, sectors or even countries that are uncorrelated. In addition, the Manager will
undertake an active bottom-up investment approach to ensure that the fundamentals of the stocks invested in are favourable.
Credit (default) and counterparty risk
When the Fund invests in Sukuk and/or conducts OTC transactions, this may involve a certain degree of credit (default) and
counterparty risk with regards to the issuers and counterparties. Generally, credit (default) and counterparty risk is the risk of loss of
the investment amount as well as the returns on investment due to the issuers‟ or counterparties‟ non payment or untimely
payment. This may result in a credit downgrade which will cause a decline in value of the investment and subsequently depress the
NAV of the Fund. In addition, each counterparty and issuer that the Fund dealt with may issue a number of securities or a security
with different tranches. Each of these securities carries its own credit rating. Thus, the Fund may expose to varying degree of credit
(default) and counterparty risk given that each security or each tranche of the security has a different level of risk exposure. Usually
this risk is more apparent for an investment with a longer tenure, i.e. the longer the duration, the higher the credit (default) and
counterparty risk. Credit (default) and counterparty risk can be managed by performing continuous fundamental credit research and
analysis to ascertain the creditworthiness of its counterparties and/or issuers as well as the credit quality of their issues. 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 or by local
rating agency(ies) of the country; “BBB” by S&P or equivalent rating by Moody‟s or Fitch.
The Fund‟s placements of Shariah-compliant Deposits are subject to credit (default) and counterparty risk. This is the risk of loss of
the investment amount as well as the returns on investment due to the counterparty‟s non payment or untimely payment. 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 bottom up and top down credit research and analysis to determine the creditworthiness of
its counterparty, and impose investment limits on exposures for counterparties with different credit profiles as a precautionary step
to limit any loss that may arise directly or indirectly as a result of a defaulted transaction.
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 NAV shall not be affected at 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 benchmarked against the
interest rates. As such, investment in Sukuk will have an exposure to the movement of the 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.
32
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 adverse changes in the country‟s economic fundamentals, social and political
stability, laws and regulations and foreign investments policies. These factors may have and adverse 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 e xposed 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 lower trading volumes 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.
We have obtained the necessary licenses/permits for investments in countries that require such licenses/permits e.g. the People‟s
Republic of China, India, Vietnam, South Korea and Republic of Taiwan. In the event that we are unable to obtain such
licenses/permits to invest in these countries or such licenses/permits to invest are then are revoked or not renewed, the Fund
manager would seek to invest in other accessible 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 the RM may therefore increase or 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.
Risk of investing in emerging markets
Investing in assets from the emerging markets generally entails a greater risk (potentially including considerable legal, economic
and political risks) than investing in assets from the markets of industrialized 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. In many cases,
political considerations have led to substantial economic and societal tensions, and in some cases these countries have
experienced both political and economic instability. Political or economic instability can influence investor confidence, which in turn
can have a negative effect on exchange rates and security prices in emerging markets. The exchange rates and the prices of
securities in the emerging markets are often extremely volatile. Changes to these security prices can be caused by interest rates,
changes to the balance of demand and supply, external forces affecting the market (especially in connection with important trading
partners), trade-related, tax-related or monetary policies, governmental policies as well as international political and economic
events.
In most cases, the securities markets in the emerging markets are still in their primary stage of development. Markets in emergingmarket countries are frequently characterized by illiquidity in the form of lower trading columes of the listed securities. In
comparison with investments in the developed markets, securities in the emerging markets may face a higher risk of price drop and
increased volatility in the security prices which can lead to the potential for investors to reduce their exposure to investment in
securities in the emerging markets securities as compared to investment in securities of the developed markets. As such, investors
should bear in mind that investments in emerging markets are subject to higher price volatility and therefore will tend to have a
higher investment risk that will affect the Fund‟s growth. The Manager will attempt to mitigate all these risks through its active asset
allocation management and diversification, in addition to its continuous bottom up and top down research and analysis.
2.2 CIMB Islamic Balanced Growth Fund
Stock specific risk
Any irregular fluctuation of the value of a particular stock may affect the unit price. In general, the value of a particular stock
fluctuates in response to activities of individual companies and in response to market conditions. The impact is however reduced as
the Fund invests in a wide portfolio of investments, thus spreading the element of risk. Diversification can be achieved by investing
in various companies across different industries, sectors or even countries that are uncorrelated. In addition, the Manager will
undertake an active bottom-up investment approach to ensure that the fundamentals of the stocks invested in are favourable.
Credit (default) and counterparty risk
When the Fund invests in Sukuk and/or conducts OTC transactions, this may involve a certain degree of credit (default) and
counterparty risk with regards to the issuers and counterparties. Generally, credit (default) and counterparty risk is the risk of loss
due to the issuers‟ or counterparties‟ non payment or untimely payment of the investment amount as well as the returns on
investment. This may result in a credit downgrade which will cause a decline in value of the investment and subsequently depress
the NAV of the Fund. In addition, each counterparty and issuer that the Fund dealt with may issue a number of securities or a
security with different tranches. Each of these securities carries its own credit rating. Thus, the Fund may expose to varying degree
of credit (default) and counterparty risk given that each security or each tranche of the security has a different level of risk
exposure. Usually this risk is more apparent for an investment with a longer tenure, i.e. the longer the duration, the higher the credit
(default) and counterparty risk. Credit (default) and counterparty risk can be managed by performing continuous fundamental credit
research and analysis to ascertain the creditworthiness of its counterparties and/or issuers as well as the credit quality of their
issues. 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
33
satisfy a minimum rating requirement of at least “BBB3” or “P2” by RAM or equivalent rating by MARC or by local rating agency(ies)
of the country; “BBB” by S&P or equivalent rating by Moody‟s or Fitch.
The Fund‟s placements of Shariah-compliant Deposits are subject to credit (default) and counterparty risk. This is the risk of loss
due to the counterparty‟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 bottom up and top down credit research and analysis to determine the
creditworthiness of its counterparty, and impose investment limits on exposures for counterparties with different credit profiles as a
precautionary step to limit any loss that may arise directly or indirectly as a result of a defaulted transaction.
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 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 benchmarked against the
interest rates. As such, investment in Sukuk will have an exposure to the movement of the 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.
SECTION 3: SUKUK & MONEY MARKET FUNDS
3.1 CIMB Islamic Enhanced Sukuk Fund
Stock specific risk
Any irregular fluctuation of the value of a particular stock may affect the unit price. In general, the value of a particular stock
fluctuates in response to activities of individual companies and in response to market conditions. The impact is however reduced as
the Fund invests in a wide portfolio of investments, thus spreading the element of risk. Diversification can be achieved by investing
in various companies across different industries, sectors or even countries that are uncorrelated. In addition, the Manager will
undertake an active bottom-up investment approach to ensure that the fundamentals of the stocks invested in are favourable.
Credit (default) and counterparty risk
When the Fund invests in Sukuk and Shariah-compliant securities and/or conducts OTC transactions, this may involve a certain
degree of credit (default) and counterparty risk with regards to the issuers and counterparties. Generally, credit (default) and
counterparty risk is the risk of loss due to the issuers‟ or counterparties‟ non payment or untimely payment of the investment
amount as well as the returns on investment. This may result in a credit downgrade which will cause a decline in value of the
investment and subsequently depress the NAV of the Fund. In addition, each counterparty and issuer that the Fund dealt with may
issue a number of securities or a security with different tranches. Each of these securities carries its own credit rating. Thus, the
Fund may expose to varying degree of credit (default) and counterparty risk given that each security or each tranche of the security
has a different level of risk exposure. Usually this risk is more apparent for an investment with a longer tenure, i.e. the longer the
duration, the higher the credit (default) and counterparty risk. Credit (default) and counterparty risk can be managed by performing
continuous fundamental credit research and analysis to ascertain the creditworthiness of its counterparties and/or issuers as well
as the credit quality of their issues. 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 or by
local rating agency(ies) of the country; “BBB” by S&P or equivalent rating by Moody‟s or Fitch.
The Fund‟s placements of Shariah-compliant Deposits are subject to credit (default) and counterparty risk. This is the risk of loss
due to the counterparty‟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 bottom up and top down credit research and analysis to determine the
creditworthiness of its counterparty, and impose investment limits on exposures for counterparties with different credit profiles as a
precautionary step to limit any loss that may arise directly or indirectly as a result of a defaulted transaction.
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 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 benchmarked against the
interest rates. As such, investment in Sukuk will have an exposure to the movement of the 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.
34
Risks associated with investment in warrants and/or options
As the Fund may invest in warrants and/or options, investors should note that there are inherent risks associated with it. Warrants
and/or 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 and/or options have values that will change over time, but the change in
the value of warrants and/or options need not be in the same manner as its underlying assets. The value of warrants and/or options
are influenced by the current market price of the underlying security, the exercise price of the warrants and/or options, the time to
expiration of the warrants and/or options and the estimate of the future volatility of the underlying security‟s price over the life of the
warrants and/or options. Like securities, the Manager will undertake fundamental research and analysis on these instruments to
ensure that the risk to the portfolio is mitigated.
Risk of investing in emerging markets
Investing in assets from the emerging markets generally entails a greater risk (potentially including considerable legal, economic
and political risks) than investing in assets from the markets of industrialized 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. In many cases,
political considerations have led to substantial economic and societal tensions, and in some cases these countries have
experienced both political and economic instability. Political or economic instability can influence investor confidence, which in turn
can have a negative effect on exchange rates and security prices in emerging markets. The exchange rates and the prices of
securities in the emerging markets are often extremely volatile. Changes to these security prices can be caused by interest rates,
changes to the balance of demand and supply, external forces affecting the market (especially in connection with important trading
partners), trade-related, tax-related or monetary policies, governmental policies as well as international political and economic
events.
In most cases, the securities markets in the emerging markets are still in their primary stage of development. Markets in emergingmarket countries are frequently characterized by illiquidity in the form of lower trading volumes of the listed securities. In
comparison with investments in the developed markets, securities in the emerging markets may face a higher risk of price drop and
increased volatility in the security prices which can lead to the potential for investors to reduce their exposure to investment in
securities in the emerging markets securities as compared to investment in securities of the developed markets. As such, investors
should bear in mind that investments in emerging markets are subject to higher price volatility and therefore will tend to have a
higher investment risk that will affect the Fund‟s growth. The Manager will attempt to mitigate all these risks through its active asset
allocation management and diversification, in addition to its continuous bottom up and top down research and analysis.
3.2 CIMB Islamic Sukuk Fund
Credit (default) and counterparty risk
When the Fund invests in Sukuk and/or conducts OTC transactions, this may involve a certain degree of credit (default) and
counterparty risk with regards to the issuers and counterparties. Generally, credit (default) and counterparty risk is the risk of loss
due to the issuers‟ or counterparties‟ non payment or untimely payment of the investment amount as well as the returns on
investment. This may result in a credit downgrade which will cause a decline in value of the investment and subsequently depress
the NAV of the Fund. In addition, each counterparty and issuer that the Fund dealt with may issue a number of securities or a
security with different tranches. Each of these securities carries its own credit rating. Thus, the Fund may expose to varying degree
of credit (default) and counterparty risk given that each security or each tranche of the security has a different level of risk
exposure. Usually this risk is more apparent for an investment with a longer tenure, i.e. the longer the duration, the higher the credit
(default) and counterparty risk. Credit risk can be managed by performing continuous fundamental credit research and analysis to
ascertain the creditworthiness of its counterparties and/or issuers as well as the credit quality of their issues. 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 or by local rating agency(ies) of the country; “BBB” by
S&P or equivalent rating by Moody‟s or Fitch.
The Fund‟s placements of Shariah-compliant Deposits are subject to credit (default) and counterparty risk. This is the risk of loss
due to the counterparty‟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 bottom up and top down credit research and analysis to determine the
creditworthiness of its counterparty, and impose investment limits on exposures for counterparties with different credit profiles as a
precautionary step to limit any loss that may arise directly or indirectly as a result of a defaulted transaction.
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 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 benchmarked against the
interest rates. As such, investment in Sukuk will have an exposure to the movement of the 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.
Risk of investing in emerging markets
Investing in assets from the emerging markets generally entails a greater risk (potentially including considerable legal, economic
and political risks) than investing in assets from the markets of industrialized 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. In many cases,
35
political considerations have led to substantial economic and societal tensions, and in some cases these countries have
experienced both political and economic instability. Political or economic instability can influence investor confidence, which in turn
can have a negative effect on exchange rates and security prices in emerging markets. The exchange rates and the prices of
securities in the emerging markets are often extremely volatile. Changes to these security prices can be caused by interest rates,
changes to the balance of demand and supply, external forces affecting the market (especially in connection with important trading
partners), trade-related, tax-related or monetary policies, governmental policies as well as international political and economic
events.
In most cases, the securities markets in the emerging markets are still in their primary stage of development. Markets in emergingmarket countries are frequently characterized by illiquidity in the form of lower trading volumes of the listed securities. In
comparison with investments in the developed markets, securities in the emerging markets may face a higher risk of price drop and
increased volatility in the security prices which can lead to the potential for investors to reduce their exposure to investment in
securities in the emerging markets securities as compared to investment in securities of the developed markets. As such, investors
should bear in mind that investments in emerging markets are subject to higher price volatility and therefore will tend to have a
higher investment risk that will affect the Fund‟s growth. The Manager will attempt to mitigate all these risks through its active asset
allocation management and diversification, in addition to its continuous bottom up and top down research and analysis.
3.3 CIMB Islamic Money Market Fund
Credit (default) and counterparty risk
When the Fund invests in Sukuk and/or conducts OTC transactions, this may involve a certain degree of credit (default) and
counterparty risk with regards to the issuers and counterparties. Generally, credit (default) and counterparty risk is the risk of loss
due to the issuers‟ or counterparties‟ non payment or untimely payment of the investment amount as well as the returns on
investment. This may result in a credit downgrade which will cause a decline in value of the investment and subsequently depress
the NAV of the Fund. In addition, each counterparty and issuer that the Fund dealt with may issue a number of securities or a
security with different tranches. Each of these securities carries its own credit rating. Thus, the Fund may expose to varying degree
of credit (default) and counterparty risk given that each security or each tranche of the security has a different level of risk
exposure. Usually this risk is more apparent for an investment with a longer tenure, i.e. the longer the duration, the higher the credit
(default) and counterparty risk. Credit risk can be managed by performing continuous fundamental credit research and analysis to
ascertain the creditworthiness of its counterparties and/or issuers as well as the credit quality of their issues. 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 or by local rating agency(ies) of the country; “BBB” by
S&P or equivalent rating by Moody‟s or Fitch.
The Fund‟s placements of Shariah-compliant Deposits are subject to credit (default) and counterparty risk. This is the risk of loss
due to the counterparty‟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 bottom up and top down research and analysis to determine the creditworthiness
of its counterparty, and impose investment limits on exposures for counterparties with different credit profiles 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 Shariah-compliant deposit with a licensed Islamic 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.
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 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 benchmarked against the
interest rates. As such, investment in Sukuk will have an exposure to the movement of the 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.
3.4 CIMB Islamic Deposit Fund
Credit (default) and counterparty risk
The Fund‟s placements of Shariah-compliant Deposits are subject to credit (default) and counterparty risk. This is the risk of loss
due to the counterparty‟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.
Investment in the Fund is not the same as placing funds in a Shariah-compliant deposit with a licensed Islamic 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.
36
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. In general, the value of a particular stock
fluctuates in response to activities of individual companies and in response to market conditions. The impact is however reduced as
the Fund invests in a wide portfolio of investments, thus spreading the element of risk. Diversification can be achieved by investing
in various companies across different industries, sectors or even countries that are uncorrelated. In addition, the Manager will
undertake an active bottom-up investment approach to ensure that the fundamentals of the stocks invested in are favourable.
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 adverse changes in the country‟s economic fundamentals, social and political
stability, laws and regulations and foreign investments policies. These factors may have an adverse 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 e xposed 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 lower trading volumes 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.
We have obtained the necessary licenses/permits for investments in countries that require such licenses/permits e.g. the People‟s
Republic of China, India, Vietnam, South Korea and Republic of Taiwan. In the event that we are unable to obtain such
licenses/permits to invest in these countries or such licenses/permits to invest are then are revoked or not renewed, the Fund
manager would seek to invest in other accessible 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 the RM may therefore increase or 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 and/or options
As the Fund may invest in warrants and/or options, investors should note that there are inherent risks associated with it. Warrants
and/or 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 and/or options have values that will change over time, but the change in
the value of warrants and/or options need not be in the same manner as its underlying assets. The value of warrants and/or options
are influenced by the current market price of the underlying security, the exercise price of the warrants and/or options, the time to
expiration of the warrants and/or options and the estimate of the future volatility of the underlying security‟s price over the life of the
warrants and/or options.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 mitigated.
Counterparty risk
The Fund‟s placements of Shariah-compliant Deposits 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 profit and / or principal
repayment. This may lead to a default in the payment of principal and/or profit 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. In general, the value of a particular stock
fluctuates in response to activities of individual companies and in response to market conditions. The impact is however reduced as
the Fund invests in a wide portfolio of investments, thus spreading the element of risk. Diversification can be achieved by investing
in various companies across different industries, sectors or even countries that are uncorrelated. In addition, the Manager will
undertake an active bottom-up investment approach to ensure that the fundamentals of the stocks invested in are favourable.
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 adverse changes in the country‟s economic fundamentals, social and political stability,
laws and regulations and foreign investments policies. These factors may have an adverse 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.
37
We have obtained the necessary licenses/permits for investments in countries that require such licenses/permits e.g. the People‟s
Republic of China and Republic of Taiwan. In the event that we are unable to obtain such licenses/permits to invest in these
countries or such licenses/permits to invest are then are revoked or not renewed, the Fund manager would seek to invest in other
accessible 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.
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 the RM may therefore increase or 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. 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 unfavourable price. This in turn would
depress the NAV 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 Shariah-compliant Deposits 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 profit and / or principal
repayment. This may lead to a default in the payment of principal and/or profit and ultimately a reduction in the value of the Fund.
4.3 CIMB Islamic Global Commodities Equity Fund
Stock specific risk
Any irregular fluctuation of the value of a particular stock may affect the unit price. In general, the value of a particular stock
fluctuates in response to activities of individual companies and in response to market conditions. The impact is however reduced
as the Fund invests in a wide portfolio of investments, thus spreading the element of risk. Diversification can be achieved by
investing in various companies across different industries, sectors or even countries that are uncorrelated. In addition, the Manager
will undertake an active bottom-up investment approach to ensure that the fundamentals of the stocks invested in are favourable.
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 mitigate 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 adverse changes in the country‟s economic fundamentals, social and political stability,
laws and regulations and foreign investments policies. These factors may have an adverse 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 the RM may therefore increase or 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.
38
Liquidity risk
Liquidity risk is defined as the ease with which a security can be sold. This is applicable to both listed and unquoted secur ities.
Generally if the security encounters a liquidity crunch, the security may need to be sold unfavourable price. This in turn would
depress the NAV 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 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. Nevertheless, investors should note that the Fund‟s highly discipl ined
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 invest ment
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.
The above summary of risks does not purport to be an exhaustive list of all the risk factors relating to investments in the
Fund and are not set out in any particular order of priority. Investors should be aware that an investment in a unit trust
fund may be exposed to other risks from time to time. If in doubt, investors should consult professional advisers for a
better understanding of the risks.
39
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 Al-Azzam Equity Fund
1.5 CIMB Islamic Equity Fund
1.6 CIMB Islamic Equity Aggressive Fund
1.7 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: SUKUK & 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 Commodities Equity Fund
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, financing and securities lending.
Part D covers the Shariah investment guidelines applicable to the Funds.
40
Part A
SECTION 1: EQUITY FUNDS
1.1 CIMB ISLAMIC DALI EQUITY GROWTH FUND
Investment objective
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 or by local rating agency(ies) of the country; “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.
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, CIMBPrincipal analyzes the direction of 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.
The Manager may take down the equity exposure when it feels that the equity market is close to its peak in term of valuations,
and/or the market condition is unfavourable. In such circumstances, the Manager may take a temporary defensive position by either
(1) reducing 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, and/or (2) investing in Shariah-compliant stocks that have low
correlation to market movements. When deemed necessary, the Manager may also utilize Shariah-compliant derivative
instruments, subject to the SC Guidelines, for the purpose of hedging.
41
1.2 CIMB ISLAMIC DALI EQUITY FUND
Investment objective
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 Market Asia Pacific ex-Japan Index*.
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 Market Asia Pacific ex Japan can be obtained from http://www.djindexes.com.
* 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 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 or by local rating agency(ies) of the country; “BBB” by S&P or equivalent rating by Moody‟s or Fitch.
The Fund may opt to invest in Shariah-compliant foreign equities up to a maximum of 30% of its NAV. Such foreign equities must
be equity securities of companies domiciled in, listed in and/or have significant operations in countries in the Asia Pacific ex Japan.
„Significant operations‟ means major businesses of the company. For example, the Fund can invest in a company with significant
business and/or operations in Thailand but listed on the New York Stock Exchange. The threshold for „significant operations‟ would
be if more than 30% of total group revenue derives from countries in Asia Pacific ex Japan. The calculation would be based on the
most recent financial reports released by the companies (e.g. interim and annual reports). 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 Shariahcompliant 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.
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, CIMBPrincipal analyzes the direction of 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.
The Fund may invest in foreign markets where the regulatory authorities are members of the 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 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 as may be agreed upon by the Manager from time to time.
CIMB-Principal has appointed CIMB-Principal (S), as the Sub-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.
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.
The Manager may take down the equity exposure when it feels that the equity market is close to its peak in term of valuations,
and/or the market condition is unfavourable. In such circumstances, the Manager may take a temporary defensive position by either
(1) reducing 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, and/or (2) investing in Shariah-compliant stocks that have low
correlation to market movements. When deemed necessary, the Manager may also utilize Shariah-compliant derivative
instruments, subject to the SC Guidelines, for the purpose of hedging.
42
1.3 CIMB ISLAMIC DALI EQUITY THEME FUND
Investment objective
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 macroeconomic 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 and gas sector
The oil and gas sector continues to provide opportunities as more jobs are being dished out by Malaysia‟s national oil company,
Petroliam Nasional Berhad (PETRONAS). We continue to overweight this sector via the smaller oil & gas players as their valuation
multiples remain reasonable.
b)
Financial sector
Conventional loan growth has been averaging at 10-12% per annum for the last few years. In contrast, Shariah-compliant financing
have been growing at 20%. We are therefore positive on the Islamic financial sector. Stocks in this sector include BIMB Holdings
Berhad and its subsidiary Syarikat Takaful Malaysia Berhad. Even Pos Malaysia Berhad is becoming a “quasi lender” with its
Shariah pawn broking business.
c)
Retail sector
With domestic consumption remaining strong as evidenced by GDP growth of 6.4% for the fourth quarter of 2012, the portfolio is
positioned in retail plays. Drivers are the country‟s relatively young population and growing urbanization.
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 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.
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.
The Manager may take down the equity exposure when it feels that the equity market is close to its peak in term of valuations ,
and/or the market condition is unfavourable. In such circumstances, the Manager may take a temporary defensive position by either
(1) reducing 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, and/or (2) investing in Shariah-compliant stocks that have low
correlation to market movements. When deemed necessary, the Manager may also utilize Shariah-compliant derivative
instruments, subject to the SC Guidelines, for the purpose of hedging.
43
1.4 CIMB ISLAMIC AL-AZZAM EQUITY 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 for 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 seeks to achieve its objective by investing a minimum of 70% and up to 98% of its NAV in Shariah-compliant Malaysian
equities. The fund manager may also invest up to 30% of the Fund‟s NAV in other Shariah-compliant investments, such as Sukuk,
and Shariah-compliant liquid assets, with at least 2% of the Fund‟s NAV maintained in the form of Shariah-compliant liquid assets
such as Islamic money market instruments and/or Shariah-compliant Deposits for liquidity purpose. For this Fund, the investment in
Sukuk must satisfy 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 Malaysian equities; and

up to 30% of the Fund‟s NAV in other Shariah-compliant investments and Shariah-compliant liquid assets, with at least 2% of
the Fund‟s NAV to be maintained 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 rectify this within three (3) months from the date of the
breach.
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, CIMBPrincipal analyzes the direction of 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 Shariahcompliant 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 the purpose of hedging.
* Manager defines “reasonable valuations” as below, but this is not limited to the following:



picking investments slightly undervalued but are still expected to have solid earnings growth in the coming years; or
benchmarking individual stocks’ valuation against industry average (e.g. average of last 5-years); or
using valuation matrix like PEG (i.e. price-earnings to growth ratio) as an indicator.
44
1.5 CIMB ISLAMIC EQUITY FUND
Investment objective
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 Market Asia Pacific ex Japan Index*.
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 Market Asia Pacific ex Japan Index can be obtained from http://www.djindexes.com.
* 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 longterm capital growth. The Fund may opt to invest in Shariah-compliant foreign equities up to a maximum of 50% of its NAV. Such
foreign equities must be equity securities of companies domiciled in, listed in, and/or have significant operations in countries in
Asia Pacific ex Japan. „Significant operations‟ means major businesses of the company. For example, the Fund can invest in a
company with significant business and/or operations in Thailand but listed on the New York Stock Exchange. The threshold for
„significant operations‟ would be if more than 30% of total group revenue derives from countries in Asia Pacific ex Japan. The
calculation would be based on the most recent financial reports released by the companies (e.g. interim and annual reports). 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 a diversified portfolio of the Shariahcompliant stocks that aims to outperform 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.
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, CIMBPrincipal analyzes the direction of 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.
The Fund may invest in foreign markets where the regulatory authorities are members of the 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 Manager and its delegate 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 and its delegate may decide not to
invest in foreign securities as may be agreed upon by the Manager from time to time.
CIMB-Principal has appointed CIMB-Principal (S), as the Sub-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.
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.
The Manager may take down the equity exposure when it feels that the equity market is close to its peak in term of valuations,
and/or the market condition is unfavourable. In such circumstances, the Manager may take a temporary defensive position by either
(1) reducing 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, and/or (2) investing in Shariah-compliant stocks that have low
correlation to market movements. When deemed necessary, the Manager may also utilize Shariah-compliant derivative
instruments, subject to the SC Guidelines, for the purpose of hedging.
45
1.6 CIMB ISLAMIC EQUITY AGGRESSIVE FUND
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.
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 Shariahcompliant 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.
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, CIMBPrincipal analyzes the direction of 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.
The Manager may take down the equity exposure when it feels that the equity market is close to its peak in term of valuations,
and/or the market condition is unfavourable. In such circumstances, the Manager may take a temporary defensive position by either
(1) reducing 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, and/or (2) investing in Shariah-compliant stocks that have low
correlation to market movements. When deemed necessary, the Manager may also utilize Shariah-compliant derivative
instruments, subject to the SC Guidelines, for the purpose of hedging.
46
1.7 CIMB ISLAMIC SMALL CAP FUND
Investment objective
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 emerging
companies*. The investment policy and strategy of the Fund will therefore focus on investments in Shariah-compliant securities of
such emerging companies* with potential growth and hands-on management policies but may be 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
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.
Note:
*Emerging companies in this context refers to companies that are listed on Bursa Malaysia with market capitalization of up to three
(3) billion Ringgit Malaysia at the point of purchase.
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 Shariahcompliant 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.
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, CIMBPrincipal analyzes the direction of 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 their intrinsic values and selling them when the share price has passed their intrinsic values.
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.
The Manager may take down the equity exposure when it feels that the equity market is close to its peak in term of valuations,
and/or the market condition is unfavourable. In such circumstances, the Manager may take a temporary defensive position by either
(1) reducing 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, and/or (2) investing in Shariah-compliant stocks that have low
correlation to market movements. When deemed necessary, the Manager may also utilize Shariah-compliant derivative
instruments, subject to the SC Guidelines, for the purpose of hedging.
47
SECTION 2: MIXED ASSET FUNDS
2.1 CIMB ISLAMIC BALANCED FUND
Investment objective
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 30% 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 Market Asia Pacific ex Japan Index + 40%
CIMB Islamic 1-month General Investment Account-i (GIA)*.
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 Market Asia Pacific ex Japan Index can be obtained from http://www.djindexes.com.
Information on CIMB Islamic 1-Month General Investment Account-i (GIA) can be obtained from http://www.cimbislamic.com.
* The benchmark is customised as such to align it closer to the structure of the portfolio and the objective of the Fund. The 1-Month
General Investment Account Rate is reflective of the objective of the Fund. Thus, investors are cautioned that the risk profile of the
Fund is higher than investing in Shariah-compliant deposits.
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 or by local rating agency(ies) of the country; “BBB” by S&P or equivalent
rating by Moody‟s or Fitch. The Fund may opt to invest in Shariah-compliant foreign equities up to a maximum of 30% of its NAV.
Such foreign equities must be of equity securities of companies domiciled in, listed in, and/or have significant operations in
countries in Asia Pacific ex Japan. „Significant operations‟ means major businesses of the company. For example, the Fund can
invest in a company with significant business and/or operations in Thailand but listed on the New York Stock Exchange. The
threshold for „significant operations‟ would be if more than 30% of total group revenue derives from countries in Asia Pacific ex
Japan. The calculation would be based on the most recent financial reports released by the companies (e.g. interim and annual
reports).
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.
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 GDP growth, interest rates, inflation, currencies and government policies. CIMBPrincipal 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 an active fund manager, CIMBPrincipal 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.
The Fund may invest in foreign markets where the regulatory authorities are members of the 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 Manager and its delegate may invest beyond this limit
provided the necessary approvals are obtained from the relevant authorities (where necessary) and any increase will be reflected in
48
a supplementary prospectus (if deemed necessary). Notwithstanding the aforesaid, the Manager and its delegate may decide not to
invest in foreign securities as may be agreed upon by the Manager from time to time.
CIMB-Principal has appointed CIMB-Principal (S), as the Sub-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.
As part of its risk management strategy, the Fund is constructed and managed within pre-determined guidelines. Essentially, CIMBPrincipal 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 long
tenured assets and channel these monies into Shariah-compliant short-term Deposits. When deemed necessary, the Manager may
also utilize Shariah-compliant derivative instruments, subject to the SC Guidelines, for the purpose of hedging.
49
2.2 CIMB ISLAMIC BALANCED GROWTH FUND
Investment objective
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 equities 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
* The benchmark is customised as such to align it closer to the structure of the portfolio and the objective of the Fund. The 1-Month
General Investment Account Rate is reflective of the objective of the Fund. Thus, investors are cautioned that the risk profile of the
Fund is higher than investing in Shariah-compliant deposits.
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 is 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 or by local rating agency(ies) of the
country; “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. 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 GDP growth, interest rates, inflation, currencies and government policies. CIMBPrincipal 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 an active fund manager, CIMBPrincipal 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, CIMBPrincipal 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 long
tenured assets and channel these monies into Shariah-compliant short-term Deposits. When deemed necessary, the Manager may
also utilize Shariah-compliant derivative instruments, subject to the SC Guidelines, for the purpose of hedging.
50
SECTION 3: SUKUK & MONEY MARKET FUNDS
3.1 CIMB ISLAMIC ENHANCED SUKUK FUND
Investment objective
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.
* The benchmark is customised as such to align it closer to the structure of the portfolio and the objective of the Fund. The 1-Month
General Investment Account Rate is reflective of the objective of the Fund. Thus, investors are cautioned that the risk profile of the
Fund is higher than investing in Shariah-compliant deposits.
Investment policy and principal investment strategy
A minimum of 70% 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 or by local rating agency(ies) of the country; “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
biased towards Shariah-compliant fixed income investments that aim to provide consistency in income, while allowing some
exposure in Shariah-compliant equities and warrants that aim to provide the added return in a rising market.
The asset allocation strategy for this Fund is as follows:
 between 70% 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. 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 an active fund manager, CIMBPrincipal 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 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.
The Fund may invest in foreign markets where the regulatory authorities are members of the 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, 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.
As part of its risk management strategy, the Fund is constructed and managed within pre-determined guidelines. Essentially, CIMBPrincipal 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 int erest 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 long
tenured assets and channel these monies into Shariah-compliant short-term Deposits. When deemed necessary, the Manager may
also utilize Shariah-compliant derivative instruments, subject to the SC Guidelines, for the purpose of hedging.
51
3.2 CIMB ISLAMIC SUKUK FUND
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.
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 70% 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 or by local rating agency(ies) of the country; “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 of Sukuk, aim to provide a steady stream of income from the profit
of Sukuk.
The asset allocation strategy for this Fund is as follows:
 between 70% 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 Manager reserves the right to deal with the security in the best interest of the
Unit holders. As an active fund manager, CIMB-Principal has in place flexible tolerance limits to cater to such situations. CIMBPrincipal 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.
The Fund may invest in foreign markets where the regulatory authorities are members of the 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, 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.
As part of its risk management strategy, the Fund is constructed and managed within pre-determined guidelines. Essentially, CIMBPrincipal 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 long
tenured assets and channel these monies into Shariah-compliant short-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 the purpose of hedging.
52
3.3 CIMB ISLAMIC MONEY MARKET FUND
Investment objective
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
* The benchmark is customised as such to align it closer to the structure of the portfolio and the objective of the Fund. The 1-Month
General Investment Account Rate is reflective of the objective of the Fund. Thus, investors are cautioned that the risk profile of the
Fund is higher than investing in Shariah-compliant deposits.
Investment policy and principal investment strategy
The Fund will place at least 90% of its NAV in 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, 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 and low risk short-term investments for 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 be tantamount to a change in
this investment strategy.
Note:
*The Fund is neither a capital guaranteed fund nor a capital protected fund.
The asset allocation strategy for this Fund is as follows:
 at least 90% of the Fund‟s NAV will be invested in Islamic money market instruments and/or Shariah-compliant Deposits; and
 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.
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 or by local rating agency(ies) of the country; “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 an active fund manager, 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.
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 Fund will only invest in liquid investments with capital preservation*. The investment committee of the Manager reviews the
counterparties on a regular basis to ensure that the Fund invests in accordance with the Fund‟s objective. The Fund is constructed
and managed within the internal guidelines such as risk-return trade-off, which will be monitored and reviewed regularly by the
investment team.
Note:
*The term “liquid investments” in this context refers to short-term financial instruments such as Shariah-compliant deposits and
money market instruments. The values of these instruments are normally not volatile and thus display capital preservation in
nature. These liquid investments are neither capital guaranteed nor capital protected.
Investment in the Fund is not the same as placing funds in a Shariah-compliant deposit with a licensed Islamic 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.
53
3.4 CIMB ISLAMIC DEPOSIT FUND
Investment objective
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
* The benchmark is customised as such to align it closer to the structure of the portfolio and the objective of the Fund. The Islamic
Interbank Overnight Rate is reflective of the objective of the Fund. Thus, investors are cautioned that the risk profile of the Fund is
higher than investing in Shariah-compliant deposits.
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. 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 for capital
preservation*.
The Fund will be actively managed to provide liquidity and to accommodate the short-term cash flow requirements of its Unit
holders.
Note:
*The Fund is neither a capital guaranteed fund nor a capital protected 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; 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 Fund will only invest in liquid investments with capital preservation*. Investment committee of the Manager reviews the
counterparties on a regular basis to ensure that the Fund invests in accordance with the Fund‟s objective. Hence, the Fund is
constructed to be managed within the internal guidelines such as risk-return trade-off, which will be monitored regularly by the
investment team.
Note:
*The term “liquid investments” in this context refers to short-term financial instruments such as Shariah-compliant deposit. The
values of these instruments are normally not volatile and thus display capital preservation in nature. These liquid investments are
neither capital guaranteed nor capital protected.
Investment in the Fund is not the same as placement in Shariah-compliant deposit with a licensed Islamic 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.
54
SECTION 4: REGIONAL & GLOBAL FUNDS
4.1 CIMB ISLAMIC ASIA PACIFIC EQUITY FUND
Investment objective
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 equity securities of companies domiciled in, listed in, and/or have
significant operations 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. „Significant operations‟ means major businesses of the company. For example, the Fund can invest in a company with
significant business and/or operations in Thailand but listed on the New York Stock Exchange. The threshold for „significant
operations‟ would be if more than 30% of total group revenue derives from countries in the emerging and developed markets of
Asia Pacific ex Japan. The calculation would be based on the most recent financial reports released by the companies (e.g. interim
and annual reports). 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 Shariahcompliant 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 or by local rating
agency(ies) of the country; “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;
 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 (S), as the Sub-Manager with the
approval of the SC. 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 Manager and its delegate 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 Manager and its delegate believes long-term
investment performance can be achieved by employing a rigorous research process that enables the Manager and its delegate 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 Manager and its delegate‟s research effort. Key
elements of this include:
 fundamental evaluation;
 valuation analysis; and
 financial models.
In addition, company visits, meetings with management and participation in conference calls are important to the Manager and its
delegate‟s research effort. In the stock screening process, the Manager and its delegate 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 Manager and its delegate 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 this Fund.
As part of its risk management strategy, the Fund is constructed and managed within pre-determined guidelines. The Manager and
its delegate employs an active asset allocation strategy depending upon the equity market expectations. Where appropriate, the
Manager and its delegate will also employ an active trading strategy in managing the Fund.
In response to adverse conditions and as part of its risk management strategy, the Manager and its delegate 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 Sukuk
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 Manager and its delegate may also
utilize Shariah-compliant derivative instruments, subject to the SC Guidelines, for the purpose of hedging.
55
4.2 CIMB ISLAMIC GREATER CHINA EQUITY FUND
Investment objective
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 in Shariah-compliant equities and Shariah-compliant equity related securities
of companies domiciled in, listed in, and/or have significant operations in countries in the Greater China region which offer mediumterm to long term growth potential in capital appreciation. „Significant operations‟ means major businesses of the company. For
example, the Fund can invest in a company with significant business and/or operations in the People‟s Republic of China but listed
on the New York Stock Exchange. The threshold for „significant operations‟ would be if more than 30% of total group revenue
derives from countries in the Greater China region. The calculation would be based on the most recent financial reports released by
the companies (e.g. interim and annual reports). 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. The Fund will focus on companies which have the
potential to participate in the growth of the Greater China region.
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.
The Fund also invests 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 (S), a company incorporated in Singapore as the Sub-Manager of this Fund with the
approval of the SC. CIMB-Principal (S) will be responsible for investing and managing the Fund in accordance with the investment
objective and within the investment restrictions.
The Sub-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 Sub-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 Sub-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 Sub-Manager is still positive on China growth. As China led Asia out of recession first, tightening ahead of major
western developed economies, the Sub-Manager believes that China will move back to a normal GDP growth trend ahead of other
economies as well. Given the current weaker-than-expected external environment especially in Euro zone, the Sub-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 Sub-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 Sub-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; and

attractive relative valuation.
Risk management, with an emphasis on portfolio diversification, will form an integral part of the investment process. The Fun d 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 Sub-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
Sub-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 Sub-Manager may utilize Shariah-compliant derivative
instruments such as Shariah-compliant futures and Shariah-compliant forward contracts to hedge the portfolio.
56
4.3 CIMB ISLAMIC GLOBAL COMMODITIES EQUITY FUND
Investment objective
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 information on the benchmark can be obtained from http://www.djindexes.com
* The combination of indices for the above benchmark represents the coverage of the investment universe and reflects the
opportunity set for the Fund.
Investment policy and principal investment strategy
The investment strategy and policy of the Fund is to invest in global commodity-related securities, predominantly in commodityrelated equities and equity-related securities, which conform 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 engaged in activities related to
commodities. These companies would include but are not limited to those in the sectors 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 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 engaged in activities related to commodities;
 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.
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 are not limited to commodity exchange-traded funds and commodity indices.
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 UK and the USA.
SIMSL has been appointed as the Sub-Manager to manage the Fund‟s portfolio. The Sub-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 Sub-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 Sub-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 a high-quality
portfolio across multiple regions and sectors.
57
Risk management strategy
Risk management, with an emphasis on portfolio diversification, will form an integral part of the investment process. The Fun d 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.
58
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 Balanced Fund
√
√
√
CIMB Islamic Asia Pacific Equity Fund
√
√
√
CIMB Islamic Greater China Equity Fund
-
-
√
Foreign market admission requirements:



India: Foreign Institutional Investors (FII) certificate issued by the Securities and 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.
59
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. Provided always that there are no
inconsistencies with the objectives of the Funds, the Funds can invest in a wide range of securities, including but not limited to
those as set out below.
SECTION 1: EQUITY FUNDS









Equities and Sukuk traded in or under the rules of an Eligible Market Note 1;
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 Note 2;
Structured products Note 2;
Securities listed or traded on foreign markets where the regulatory authority is a member of the IOSCO Note 3; 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.
Note 1: Does not apply to Azzam; instead, the following applies:
Equities and debentures traded in or under the rules of an Eligible Market.
Note 2: Does not apply to Azzam.
Note 3: Does not apply to DALI3, Azzam, IEAF and ISCF.
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.
SECTION 2: MIXED ASSET FUNDS









Equities and Sukuk 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 IOSCO Note 1; 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.
Note 1: Does not apply to IBGF.
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.
SECTION 3: SUKUK & MONEY MARKET FUNDS
SUKUKNote 1









Equities and Sukuk 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 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.
Note 1: Applicable to IESF and ISF.
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.
60
SECTION 3: SUKUK & MONEY MARKET FUNDS
CIMB ISLAMIC MONEY MARKET FUND







Sukuk 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 Shariahcompliant with licensed Islamic financial institutions;
Negotiable Instruments of Deposits and Bankers Acceptances that are Shariah-compliant;
Corporate Sukuk traded in an Eligible Market which carries at least a “BBB3” or “P2” 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 permitted by the SC from time
to time that are in line with the Fund‟s objective provided always that the investments are Shariah-compliant or permissible.
CIMB ISLAMIC DEPOSIT FUND


Deposit placements with licensed Islamic 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.
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.
SECTION 4: REGIONAL & GLOBAL FUNDS









Equities and Sukuk 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 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 Note 1.
Note 1: Applicable to all Regional & Global Funds except for IGCEF; instead, the following applies to IGCEF:
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.
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.
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.
61
INVESTMENT RESTRICTIONS AND LIMITS
Exposure limit
Investment spread limits


Equity Funds


Mixed Asset
Funds
the value of the
Fund‟s
investment
in
unlisted
securities
must
not exceed 10%
of the Fund‟s
NAV.
Sukuk &
Money
Market
Funds Note 2



Regional &
Global Funds

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 Shariahcompliant 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 Shariahcompliant derivative transaction with any
single counter-party must not exceed 10% of
the Fund‟s NAV;
the value of the Fund‟s investment in Shariahcompliant 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




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:
The CIMB Islamic Money Market Fund and the CIMB Islamic Deposit Fund are subject to the following investment restrictions
and limits:
Exposure
limits




Investment
Spread limits





Investment
Concentration
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.
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 licensed Islamic 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.
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
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.
62
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 licensed Islamic financial institutions, Islamic money
market instruments and Sukuk with a remaining maturity of less than one (1) year.
Requirement
Equity Funds
Mixed Asset Funds
Sukuk & Money Market Funds
Note 1
Hold a minimum of 2.00% of Fund‟s NAV (or such other amount agreed by both
the Manager and the Trustee from time to time) in Shariah-compliant liquid
assets.
Regional & Global Funds
Note 1:
Not applicable to CIMB Islamic Money Market Fund and CIMB Islamic Deposit Fund.
VALUATION OF AUTHORISED 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 daily by reference to
the last transacted price on that approved exchange. If the last transacted price does not represent the fair value of the
securities, then the securities should be valued at fair price as determined in good faith by the Manager, based on the methods
or bases approved by the Trustee after appropriate technical consultation, such as 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 agreed by the trustee, whereupon their fair
value will be determined in good faith by the Manager based on the methods or bases approved by the Trustee after
appropriate technical consultation.

Unlisted Shariah-compliant securities
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 daily
at the issue price of such Shariah-compliant securities. The value will be determined by the financial institution that issued the
instrument.

Unlisted Sukuk
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 twenty (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.
For CIMB Islamic Asia Pacific Equity Fund, CIMB Islamic DALI Equity Fund, CIMB Islamic Balanced Fund, CIMB
Islamic Enhanced Sukuk Fund, CIMB Islamic Sukuk Fund and CIMB Islamic Money Market Fund, the value of any
unlisted non RM-denominated Sukuk shall be calculated daily using prices quoted by IDC using its proprietary methodology.
The Sukuk prices are calculated using prices contributed by financial institutions and other market inputs listed in approximate
order of priority, include: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets,
benchmark securities, bids, offers and reference data (e.g. corporate action announcements and ratings). Where the prices
from IDC are not available on any business day, these Sukuk will be valued by reference to the average indicative yield quoted
by three (3) independent and reputable financial institutions.

Unlisted Shariah-compliant derivative instruments
For unlisted Shariah-compliant derivative instruments, the Manager shall ensure that the valuation of the investment is valued
daily at fair value as determination in good faith by the Manager, on methods and bases which have been verified by the
auditor of the Fund and approved by the Trustee

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 daily 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 daily by reference to the last
published repurchase/redemption price for that Shariah-compliant collective investment scheme.
63

Islamic money market instruments
Valuation of Islamic money market instruments such as Islamic repurchase agreements shall be determined each day by
reference to the value of such authorised investments as provided by the financial institutions that issues such instruments or
in the absence of the above, the average indicative price obtained from at least three (3) independent and reputable financial
institutions.

Shariah-compliant Deposits
The value of Shariah-compliant Deposits shall be determined each day by reference to the principal value of such authorised
investments and the profit accrued thereon for the relevant period.
As the value of an asset of the Fund is denominated in a foreign currency, the assets are translated on a daily basis to Ringgit
Malaysia using the bid foreign exchange rate quoted by either Reuters or Bloomberg at UK 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.
FINANCING
The Funds may not obtain cash financing or other assets in connection with its activities. However, the Funds may obtain cash
financing for the purpose of meeting withdrawal requests for units and for short-term bridging requirements provided always that all
the financing 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.
64
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 Al-Azzam Equity 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 and CIMB Islamic Global Commodities Equity Fund.
At all times, the Funds shall invest in activities and instruments that are permissible under Shariah principles and shall not invest in
activities and instruments that are prohibited under Shariah principles based on Shariah Adviser‟s established parameters as
below:
Screening process
1.
CIMB Islamic DALI Equity Theme Fund, CIMB Islamic Al-Azzam Equity 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 SAC of the SC.
2.
CIMB Islamic Asia Pacific Equity Fund, CIMB Islamic DALI Equity Fund, CIMB Islamic Balanced Fund, CIMB Islamic
Equity Fund, CIMB Islamic Greater China Equity Fund, CIMB Islamic Global Commodities 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 MarketTM Indices.
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 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 MarketTM Indices 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 Funds.
(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;
restaurants and hotels/motels except those not selling alcohol and/or non-halal food;
operators of gambling casinos and manufacturers of gambling machines;
operators of movie theatres and cable TV companies;
financial services (conventional banks, brokerage firms and investment funds that invest in companies that
engage in the restricted activities, insurance companies, etc); and
other activities deemed non-permissible according to Shariah principles.
(ii)
(iii)
(iv)
(v)
(vi)
1
4.2
For a Special Purpose Acquisition Company (SPAC)
considered the following criteria:
to be classified as Shariah-compliant, the SAC had
(a)
The proposed business activity should be Shariah-compliant;
(b)
The entire proceeds raised from the IPO should be placed in Islamic accounts; and
(c)
In the event that the proceeds are invested, the entire investment should be Shariah-compliant.
4.3
The contribution of non Shariah-compliant activities to the overall revenue of the company will be computed and
compared against the relevant business activities benchmarks as follows:
Business activity benchmarks
(a)
The 5-percent benchmark
This benchmark would be applicable to the following businesses/activities:

conventional banking;

conventional insurance;
1
SPAC is a specialcompany formed to acquire business through acquisition or merger with other entities. SPAC is a publicl- traded
shel company that raises funds through an initial public offering. The proceeds are placed with a trustee pending a qualifying
acquisition.
65








gambling;
liquor and liquor-related activities;
pork and pork-related activities;
non-halal food and beverages;
non Shariah-compliant entertainment;
Interest income from conventional accounts and instruments (including dividends from investment in non
Shariah-compliant instruments and interest income awarded arising from a judgement by a court or arbitrator);
tobacco and tobacco-related activities; and
other activities deemed non-compliant according to Shariah.
(b)
The 20-percent benchmark
This benchmark would be applicable to the following businesses/activities

hotel and resort operations;

share trading;

stockbroking business;

rental received from non Shariah-compliant activities; and

other activities deemed non-compliant according to Shariah.
The contribution of non Shariah-compliant businesses/activities to the overall revenue of the company will be calculated and
compared against the relevant business activity benchmarks.
4.4
Financial ratio benchmarks:
The financial ratios applied are as follows:
(i)
Cash over total assets (cash ratio)
Cash only includes cash placed in conventional accounts and instruments, whereas cash placed in Islamic
accounts and instruments is excluded from the calculation.
(ii)
Debt over total assets (debt ratio)
Debt only includes interest-bearing debt whereas Islamic financing or Sukuk is excluded from the
calculation.
Each ratio, which is intended to measure riba and riba-based elements within a company‟s statements of financial
position, must be less than 33 per cent.
5.
The Funds shall invest in domestic and foreign Shariah-compliant collective investment schemes;
6
Deposits shall be placed with financial institutions licensed under the Islamic Financial Services Act 2013 and/or Financial
Services Act 2013, whichever is appropriate. For the avoidance of doubt, only Shariah compliant account is permitted for
placement of deposit with institutions licensed under the Financial Services Act. 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, CIMB Islamic Money Market 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 approved by the SAC of BNM 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 Shariah investment guidelines below are only applicable for the CIMB Islamic Deposit Fund.
At all times, CIMB Islamic Deposit 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.
7.
Financial instruments issued by licensed Islamic financial institutions in Malaysia must be duly approved by the SAC of
BNM and/or the SAC of the SC.
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:
66
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 Funds‟ original investment costs to the maximum holding limit of 1 year or up to a period
deemed appropriate and shall be approved by the Shariah Adviser. 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 Shariahcompliant 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.
Note:
*Shariah-compliant securities refers to equities as per guideline stipulated in list of Shariah-compliant securities issued
by SAC of the SC on 30 May 2014 (or as issued from time to time) and/or issued by Dow Jones Islamic Market TM Indices
on a quarterly basis as well as any equities which had been approved by Shariah Adviser based on clause 4 under
screening process of Shariah investment guidelines.
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 fees and other transaction costs2.
8.
9.
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 nonpermissible activities under number 4.3 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.
2
If the disposal of the non Shariah-compliant securities causes losses to the Funds the Manager must bear the losses by ensuring
the loss portion be restorded and returned to the Funds.
67
FUNDS’ PERFORMANCE
AVERAGE TOTAL RETURNS
The following table reflects the average total returns of the Funds in the preceding financial years/periods:
1-Year
3-Year
5-Year
10-Year
Since
Inception
21.36
18.32
31.46
18.60
12.14
17.76
11.60
5.41
10.47
12.56
10.86
7.75
12.00
10.76
7.79
9.16
1.21
-
-
0.48
2.23
4.53
4.94
-
3.69
7.96
5.75
6.21
(2.12)
9.53
-
5.99
-
6.72
(1.99)
15.33
7.45
15.44
-
10.09
24.92
3.03
12.64
3.00
18.56
2.81
-
8.92
2.78
13.50
22.94
10.29
10.07
15.62
20.93
-
8.43
5.63
2.65
5.38
7.75
-
10.45
23.80
-
-
-
(0.52)
5.87
4.69
7.82
-
5.58
6.43
(1.56)
0.93
-
2.14
As at 31 May 2013, in %
CIMB Islamic DALI Equity Growth Fund
CIMB Islamic DALI Equity Fund
CIMB Islamic Small Cap Fund
As at 31 July 2013, in %
CIMB Islamic Greater China Equity Fund
As at 31 August 2013, in %
CIMB Islamic Sukuk Fund
As at 30 September 2013, in %
CIMB Islamic Balanced Fund
CIMB Islamic Global Commodities Equity Fund
As at 31 October 2013, in %
CIMB Islamic Equity Fund
As at 30 November 2013, in %
CIMB Islamic DALI Equity Theme Fund
CIMB Islamic Money Market Fund
As at 31 December 2013, in %
CIMB Islamic Balanced Growth Fund
CIMB Islamic Equity Aggressive Fund
As at 31 January 2014, in %
CIMB Islamic Deposit Fund
As at 28 February 2014, in %
CIMB Islamic Al-Azzam Equity Fund
As at 31 March 2014, in %
CIMB Islamic Enhanced Sukuk Fund
As at 30 April 2013, in %
CIMB Islamic Asia Pacific Equity Fund
The average total returns as at 30 April 2014 are not yet available.
Note: All performance figures have been extracted from Lipper.
68
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
Inception
As at 31 May 2013, in %
CIMB Islamic DALI
Equity Growth Fund
21.36
30.18
66.82
101.81
73.14
87.13
179.20
196.59
196.03
226.41
425.18
CIMB Islamic DALI
Equity Fund
18.32
17.95
41.03
58.43
30.17
42.99
122.43
142.61
149.78
180.29
180.71
CIMB Islamic Small
Cap Fund
31.46
30.99
63.30
109.06
64.54
90.25
147.58
117.14
90.33
111.04
113.11
(1.05)
3.66
(7.61)
-
-
-
-
-
-
2.00
8.51
14.22
18.95
27.27
26.30
33.40
35.58
As at 31 July 2013, in %
CIMB Islamic
Greater China Equity
Fund
9.16
As at 31 August 2013, in %
CIMB Islamic Sukuk
Fund
2.23
-
-
38.11
As at 30 September 2013, in %
CIMB Islamic
Balanced Fund
7.96
20.17
19.80
27.43
57.62
27.05
75.08
73.98
77.03
78.93
126.65
CIMB Islamic Global
Commodities Equity
Fund
5.75
5.89
(6.22)
-
-
-
-
-
-
-
(5.84)
26.59
24.06
41.03
105.02
28.54
107.32
130.00
138.30
-
139.06
As at 31 October 2013, in %
CIMB Islamic Equity
Fund
15.33
As at 30 November 2013, in %
CIMB Islamic DALI
Equity Theme Fund
24.92
36.19
42.90
69.35
134.24
-
-
-
-
-
63.59
CIMB Islamic Money
Market Fund
3.03
5.95
9.28
14.84
-
-
-
-
-
-
16.95
As at 31 December 2013, in %
CIMB Islamic
Balanced Growth
Fund
13.50
24.81
34.16
55.15
106.58
37.78
83.44
112.58
96.81
117.77
136.04
CIMB Islamic Equity
Aggressive Fund
22.94
33.33
33.36
63.08
158.64
35.01
104.06
148.31
110.65
133.48
176.38
5.38
7.75
9.93
-
-
-
-
-
-
10.45
-
-
-
-
-
-
-
-
-
(0.52)
10.13
14.73
26.56
45.72
39.10
40.92
59.28
63.80
-
63.80
(7.51)
(4.60)
30.26
4.73
4.33
-
-
-
-
15.81
As at 31 January 2014, in %
CIMB Islamic
Deposit Fund
2.65
As at 28 February 2014, in %
CIMB Islamic AlAzzam Equity Fund
23.80
As at 31 March 2014, in %
CIMB Islamic
Enhanced Sukuk
Fund
5.87
As at 30 April 2013, in %
CIMB Islamic Asia
Pacific Equity Fund
6.43
The annual total returns as at 30 April 2014 are not yet available.
Note: All performance figures have been extracted from Lipper.
69
Basis of calculation and assumptions made in calculating the returns
NAVt – NAVt-1
Percentage growth
=
-------------------------------
NAVt-1
Total Returns of the years under review
Average Total Returns
=
--------------------------------------------------------------------------------------
Number of years under review
FUNDS’ PERFORMANCE AGAINST BENCHMARK
This table describes the performance of the Funds and comparison with the selected benchmark for the preceding financial
years/periods.
As at 31 May 2013, in %
CIMB Islamic DALI Equity Growth Fund
1-Year
3-Year
5-Year
10-Year
Since Inception
Fund
21.36
66.82
73.14
226.41
425.18
Benchmark
15.74
45.22
36.79
160.54
189.00
The Fund achieved return of 21.36% over the 1-year, which is the subject of this review.
Note: 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.
CIMB Islamic DALI Equity Fund
1-Year
3-Year
5-Year
10-Year
Since Inception
18.32
41.03
30.17
180.29
180.71
Fund
Benchmark
14.04
33.24
16.82
130.27
143.04
The Fund surged 31.46% while the benchmark rallied by 27.29%. The Fund therefore out-performed by 4.17% during the twelve
months under review. Both appropriate equity exposure levels and good stock selections contributed to the positive Fund
performance. Over 3 years, the Fund is up 63.30%, averaging 21.10% per year. The Fund has therefore met its objective of
achieving capital appreciation in the longer term.
Note: 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.
CIMB Islamic Small Cap Fund
1-Year
3-Year
5-Year
10-Year
Since Inception
31.46
63.30
64.54
111.04
113.11
Fund
Benchmark
27.29
42.21
42.63
146.45
164.20
The Fund surged 31.46% while the benchmark rallied by 27.29%. The Fund therefore out-performed by 4.17% during the twelve
months under review. Both appropriate equity exposure levels and good stock selections contributed to the positive Fund
performance. Over 3 years, the Fund is up 63.30%, averaging 21.10% per year. The Fund has therefore met its objective of
achieving capital appreciation in the longer term.
Note: 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.
As at 31 July 2013, in %
CIMB Islamic Greater China Equity Fund
1-Year
3-Year
5-Year
10-Year
Since Inception
Fund
9.16
3.66
-
-
2.00
Benchmark
6.35
6.01
-
-
15.24
The fund has outperformed the index by 2.81% in 1 year period.
As at 31 August 2013, in %
CIMB Islamic Sukuk Fund
1-Year
3-Year
5-Year
10-Year
Since Inception
Fund
2.23
14.22
27.27
-
38.11
Benchmark
2.07
10.47
24.89
-
47.40
70
In terms of return, the Fund achieved a positive total return of 2.23% as compared to the benchmark Quantshop GII Medium Index
return of 2.07% for the year. The outperformance of 0.16% was due to better performance of selective underlying corporate Sukuk in
the portfolio.
Note: 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.
As at 30 September 2013, in %
CIMB Islamic Balanced Fund
1-Year
3-Year
5-Year
10-Year
Since Inception
Fund
7.96
19.80
57.62
78.93
126.65
Benchmark
6.44
14.16
39.46
73.18
81.62
The Fund recorded a return of 7.96% for the period under review outperforming the benchmark by 1.52%. Over the longer period, the
Fund outperformed the benchmark by 5.64% over 3 years and 18.16% over 5 years.
Note: Effective 1 June 2007, the benchmark for this Fund has been replaced with thefollowing: 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.
CIMB Islamic Global Commodities Equity Fund
1-Year
3-Year
5-Year
10-Year
Since Inception
Fund
5.75
(2.12)
-
-
(1.99)
Benchmark
2.93
4.94
-
-
0.72
For the one-year period, the Fund gained 5.75% outperforming the benchmark which gained 2.93%.
As at 31 October 2013, in %
CIMB Islamic Equity Fund
1-Year
3-Year
5-Year
10-Year
Since Inception
Fund
15.33
24.06
105.02
-
139.06
Benchmark
11.02
15.16
95.15
-
81.84
For the year under review, the fund achieved total return of 15.33%, with most of it being contributed from dividends and profit
income. The Fund outperformed the benchmark by 4.31% over the period.
Note: 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.
As at 30 November 2013, in %
CIMB Islamic DALI Equity Theme Fund
1-Year
3-Year
5-Year
10-Year
Since Inception
Fund
24.92
42.90
134.24
-
63.59
Benchmark
16.22
29.56
115.82
-
27.60
For the 1-year period the Fund provided investors with a return of 24.92%. In the process, the Fund outperformed its benchmark by
8.70%.
CIMB Islamic Money Market Fund
1-Year
3-Year
5-Year
10-Year
Since Inception
Fund
3.03
9.28
14.84
-
16.95
Benchmark
2.78
8.46
13.35
-
15.55
As at 30 November 2013, the Fund gave a 1 and 3 year return of 3.03% and 0.25% respectively. Since inception, the Fund achieved
a return of 16.95%.
As at 31 December 2013, in %
CIMB Islamic Balanced Growth Fund
1-Year
3-Year
5-Year
10-Year
Since Inception
Fund
13.50
34.16
106.58
-
136.04
Benchmark
9.09
21.41
70.12
-
124.80
For the year under review, the Fund recorded a return of 13.50%, outperforming the benchmark by 4.41%. However, over the longer
period, the Fund outperformed the benchmark by 12.75% over 3 years and 36.46% over 5 years.
71
CIMB Islamic Equity Aggressive Fund
1-Year
3-Year
5-Year
10-Year
Since Inception
Fund
22.94
33.36
158.64
-
176.38
Benchmark
13.29
29.76
119.37
-
134.92
The Fund provided investors with a return of 22.94% over the last 1-year, outperforming the benchmark by 9.65%. The Fund had a
significant weighting in the Property Sector which was a laggard during the year.
As at 31 January 2014, in %
CIMB Islamic Deposit Fund
1-Year
3-Year
5-Year
10-Year
Since Inception
Fund
2.65
7.75
-
-
10.45
Benchmark
3.01
9.13
-
-
12.40
As at 31 January 2014, the Fund gave a 1 year return of 2.65%. Since inception, the Fund has delivered a return of 10.45% to unit
holders.
As at 28 February 2014, in %
CIMB Islamic Al-Azzam Equity Fund
1-Year
3-Year
5-Year
10-Year
Since Inception
Fund
23.80
-
-
-
(0.52)
Benchmark
14.90
-
-
-
(1.74)
The Fund achieved total return of 23.8% for the 1-year ended 28 February 2014. It represents an outperformance of 8.9% against the
benchmark. This was achieved by mainly by stock selection. The two largest contributors to the outperformance at the stock level
were BIMB Holdings Berhad and Pos Malaysia Berhad.
As at 31 March 2014, in %
CIMB Islamic Enhanced Sukuk Fund
1-Year
3-Year
5-Year
10-Year
Since Inception
Fund
5.87
14.73
45.72
-
63.80
Benchmark
4.74
11.41
25.87
-
33.00
As at 31st March 2014, the Fund recorded a return of 5.87% and 63.80% since inception.
As at 30 April 2013, in %
CIMB Islamic Asia Pacific Equity Fund
1-Year
3-Year
5-Year
10-Year
Since Inception
Fund
6.43
(4.60)
4.73
-
15.81
Benchmark
2.40
0.00
7.31
-
7.20
The fund reported a return of 6.43% and outperformed the benchmark by 4.03%, as we have positioned the fund correctly to take
advantage of the rally in second half of the period under review.
Note: 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.
The performance of the Fund and comparison with the selected benchmark for the preceding financial years/periods as at 30 April
2014 are not yet available.
Note: All performance figures have been extracted from Lipper.
72
DISTRIBUTIONS
CIMB Islamic DALI Equity Growth Fund (FYE: 31 May)
Distribution on 5 July 2012
Net distribution per unit (Sen)
Gross distribution per unit (Sen)
Distribution on 11 August 2011
Net distribution per unit (Sen)
Gross distribution per unit (Sen)
2013
2012
2011
5.56
5.62
-
-
-
6.94
7.08
-
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)
2013
2012
2011
Distribution 27 June 2012
Net distribution per unit (Sen)
Gross distribution per unit (Sen)
6.56
6.62
-
-
Distribution 4 August 2011
Net distribution per unit (Sen)
Gross distribution per unit (Sen)
-
6.62
6.70
-
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 Small Cap Fund (FYE: 31 May)
No income distribution has been paid since inception.
2013
2012
2011
CIMB Islamic Greater China Equity Fund (FYE: 31 July)
Given its investment objective, the Fund is not expected to pay any
distribution.
2013
2012
2011
CIMB Islamic Sukuk Fund (FYE: 31 August)
Distribution
Net distribution per unit (Sen)
Gross distribution per unit (Sen)
2013
2012
2011
-
-
-
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 Balanced Fund (FYE: 30 September)
Distribution on 26 September 2012
Net distribution per unit (Sen)
Gross distribution per unit (Sen)
2013
2012
2011
-
2.40
2.40
-
Distribution on 25 October 2011
Net distribution per unit (Sen)
Gross distribution per unit (Sen)
-
2.45
2.45
-
Distribution on 6 October 2010
Net distribution per unit (Sen)
Gross distribution per unit (Sen)
-
-
2.80
2.80
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 Global Commodities Equity Fund (FYE: 30 September)
Given its investment objective, the Fund is not expected to pay any
distribution.
2013
2012
2011
CIMB Islamic Equity Fund (FYE: 31 October)
Distribution on 12 November 2012
Net distribution per unit (Sen)
Gross distribution per unit (Sen)
2013
2012
2011
4.50
4.60
-
-
73
Distribution on 7 March 2012
Net distribution per unit (Sen)
Gross distribution per unit (Sen)
-
4.43
4.50
-
Distribution on 27 June 2011
Net distribution per unit (Sen)
Gross distribution per unit (Sen)
-
-
4.93
4.94
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 Theme Fund (FYE: 30 November)
Distribution on 22 August 2013
Net distribution per unit (Sen)
Gross distribution per unit (Sen)
2013
2012
2011
2.47
2.50
-
-
CIMB Islamic Money Market Fund (FYE: 30 November)
Distribution on 31 December
Gross/net distribution per unit (Sen)
2013
2012
2011
0.22
0.18
0.12
Distribution on 30 January
Gross/net distribution per unit (Sen)
0.24
0.18
0.09
Distribution on 28 February
Gross/net distribution per unit (Sen)
0.22
0.09
0.11
Distribution on 31 March
Gross/net distribution per unit (Sen)
0.23
0.15
0.21
Distribution on 30 April
Gross/net distribution per unit (Sen)
0.20
0.17
0.18
Distribution on 31 May
Gross/net distribution per unit (Sen)
0.18
0.17
0.13
Distribution on 30 June
Gross/net distribution per unit (Sen)
0.18
0.12
0.13
Distribution on 31 July
Gross/net distribution per unit (Sen)
0.19
0.10
0.12
Distribution on 31 August
Gross/net distribution per unit (Sen)
0.20
0.13
0.10
Distribution on 30 September
Gross/net distribution per unit (Sen)
0.16
0.01
0.13
Distribution on 31 October
Gross/net distribution per unit (Sen)
0.15
0.14
0.15
Distribution on 30 November
Gross/net distribution per unit (Sen)
0.12
0.22
0.14
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)
Final distribution on 31 December
Net distribution per unit (Sen)
Gross distribution per unit (Sen)
2013
2012
2011
-
2.00
2.03
1.80
1.86
Distribution was in the form of cash or reinvested into additional units in the Fund at the NAV per unit on the distribution date.
74
CIMB Islamic Equity Aggressive Fund (FYE: 31 December)
Final distribution on 31 December
Net distribution per unit (Sen)
Gross distribution per unit (Sen)
2013
2012
2011
-
-
3.00
3.15
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)
Distribution on 28/29 February
Gross/Net distribution per unit (Sen)
2014
2013
2012
-
0.20
0.21
Distribution on 31 March
Gross/Net distribution per unit (Sen)
-
0.23
0.22
Distribution on 30 April
Gross/Net distribution per unit (Sen)
-
0.22
0.21
Distribution on 31 May
Gross/Net distribution per unit (Sen)
-
0.22
0.21
Distribution on 30 June
Gross/Net distribution per unit (Sen)
-
0.20
0.20
Distribution on 31 July
Gross/Net distribution per unit (Sen)
-
0.24
0.26
Distribution on 31 August
Gross/Net distribution per unit (Sen)
-
0.21
0.23
Distribution on 30 September
Gross/Net distribution per unit (Sen)
-
0.22
0.23
Distribution on 31 October
Gross/Net distribution per unit (Sen)
-
0.22
0.22
Distribution on 30 November
Gross/Net distribution per unit (Sen)
-
0.22
0.22
Distribution on 31 December
Gross/Net distribution per unit (Sen)
-
0.23
0.20
Distribution on 31 January
Gross/Net distribution per unit (Sen)
0.22
0.23
0.20
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 Al-Azzam Equity Fund (FYE: 28 February*)
2014
2013
2012
Distribution
Net distribution per unit (Sen)
Gross distribution per unit (Sen)
Distribution was in the form of cash or reinvested into additional units in the Fund at the NAV per unit on the distribution date.
* 29 February in the event of a leap year.
CIMB Islamic Enhanced Sukuk Fund (FYE: 31 March)
2014
2013
2012
Distribution on 31 March
Net distribution per unit (Sen)
4.44
9.13
Gross distribution per unit (Sen)
4.45
9.16
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 Asia Pacific Equity Fund (FYE: 30 April)
2013
2012
Regular distributions are not the focus of this Fund. Distributions, if any, are at the discretion of the Manager.
2011
The distribution data as at 30 April 2014 are not yet available.
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).
75
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.
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
CIMB Islamic Asia Pacific Equity FundNote 1
Financial Year Ended
CIMB Islamic DALI Equity Growth
CIMB Islamic DALI Equity Fund
CIMB Islamic Small Cap Fund
Note 2
Note 3
Note 4
CIMB Islamic Deposit Fund
1.24
31 August 2011
0.97
0.84
0.66
30 September 2013
30 September 2012
30 September 2011
1.09
0.76
1.05
1.11
0.54
0.93
31 October 2013
31 October 2012
31 October 2011
0.70
0.76
1.05
30 November 2013
30 November 2012
30 November 2011
0.80
1.09
0.84
0.84
1.10
1.09
31 December 2013
31 December 2012
31 December 2011
1.37
1.08
0.89
0.94
1.41
1.74
31 January 2014
31 January 2013
31 January 2012
27.10
35.87
46.00
28 February 2014
28 February 2013
1.08
0.83
31 March 2014
31 March 2013
31 March 2012
0.66
0.98
0.80
Note 15
CIMB Islamic Al-Azzam Equity Fund
Financial Year Ended
0.93
31 August 2012
Note 14
Financial Year Ended
0.83
31 August 2013
Note 13
Financial Year Ended
0.57
1.51
Note 12
CIMB Islamic Equity Aggressive Fund
0.66
2.27
Note 11
CIMB Islamic Balanced Growth Fund
0.65
1.24
CIMB Islamic DALI Equity Theme Fund Note 10
Financial Year Ended
31 May 2011
2.82
CIMB Islamic Equity FundNote 9
CIMB Islamic Money Market Fund
31 May 2012
31July 2011
CIMB Islamic Global Commodities Equity FundNote 8
Financial Year Ended
31 May 2013
1.73
Note 7
Financial Year Ended
1.46
31July 2012
CIMB Islamic Sukuk FundNote 6
CIMB Islamic Balanced Fund
30 April 2011
1.37
1.69
CIMB Islamic Greater China Equity FundNote 5
Financial Year Ended
30 April 2012
0.75
31July 2013
Financial Year Ended
Financial Year Ended
30 April 2013
CIMB Islamic Enhanced Sukuk FundNote 16
The latest audited figure as at 30 April 2014 are not available.
Notes:
Note 1
-
The portfolio turnover ratio fell from the previous financial year‟s 1.37 times to 0.75 times due to fewer trades needed
to properly position the portfolio.
Note 2
-
For DALI, for the period under review, the portfolio turnover of the Fund was maintained at 0.65 times, which is almost
the same as that of the previous year.
Note 3
-
For DALI2, the PTR fell from the previous financial years 0.93 times to 0.83 times as the holding period was
lengthened to avoid being whipsawed in a volatile market.
Note 4
-
For ISCF, the PTR over the last 12 months was at 1.69 times, slightly lower than the 1.74 times in the previous
corresponding period. The lower PTR reflected the longer average holding period to avoid being whipsawed by the
volatile market.
Note 5
-
For IGCEF, PTR has reduced. We have relatively higher cash compared to 1 year ago.
76
Note 6
-
For ISF, the Fund‟s PTR rose to 0.97 times during the period under review from 0.85 times previously reflecting the
increased transactions mainly due to the volatile markets.
Note 7
-
For IBF, The Fund‟s PTR rose to 1.09 times during the period under review from 0.76 times in the same period a year
ago, reflecting the increased transactions from changes in equity exposure made due to the volatile markets
Note 8
-
For ICEF, the portfolio‟s turnover ratio increased to 1.11 times from 0.54 times as there were more trading activities
during the period.
Note 9
-
For IEF, the Fund‟s PTR declined slightly to 0.70 times during the year under review, from 0.76 times in the same year
ago. Portfolio turnover remains relatively unchanged. Turnover was necessitated by the volatile markets.
Note 10
-
For DALI3, PTR has fallen to 0.80 times from 1.09 times from the previous financial year. Value of transactions was
reduced as we held equity allocation constant for most of the year.
Note 11
-
For IMMF, the PTR for the year stood at 0.84 times, lower from 1.10 times a year ago due to
lower number of transactions recorded.
Note 12
-
For IBGF, the Fund‟s PTR rose to 1.37 times during the year under review from 1.08 times in a year ago, reflecting the
increased transactions from changes in equity exposure made due to the volatile markets.
Note 13
-
For IEAF, the PTR of the Fund has been reduced from 1.41 times in the previous financial year to 0.95 times in
financial year under review. As the Fund was positioned for most of the year, the number of transactions was reduced.
Note 14
-
For IDF, the PTR for the period under review was 27.10 times, a drop from 35.87 times a year ago.
Note 15
-
For Azzam, the turnover of the Fund increased from 0.83 times the previous year to 1.08 times in the period under
review due mainly to redemptions and subscriptions of units which necessitated a sell down and subsequently a
repurchase as subscriptions of units increased.
Note 16
-
The Portfolio Turnover Ratio (“PTR”) was lower at 0.66 times compared to previous year turnover of 0.98 times. The
lower PTR was due to lesser volume of transactions for the year..
77
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
2013
2012
2011
Shariah-compliant local equities
91.89%
88.35%
92.07%
Shariah-compliant liquid assets & others
8.11%
11.65%
7.93%
2013
2012
2011
Shariah-compliant local equities
63.82%
65.27%
66.59%
Shariah-compliant foreign equities
23.27%
27.26%
26.88%
Shariah-compliant liquid assets & others
12.91%
7.47%
6.53%
2013
2012
2011
Shariah-compliant local equities
93.95%
87.99%
81.99%
Shariah-compliant liquid assets & others
6.05%
12.01%
18.01%
2013
2012
2011
Shariah-compliant foreign equities
91.19%
96.99%
92.09%
Shariah-compliant liquid assets & others
8.81%
3.01%
7.91%
CIMB Islamic DALI Equity Fund
Note 2
CIMB Islamic Small Cap Fund Note 3
Financial Year Ended: 31 July
CIMB Islamic Greater China Equity Fund Note 4
Financial Year Ended: 31 August
CIMB Islamic Sukuk Fund Note 5
2013
2012
2011
Shariah-compliant fixed income securities
95.79%
72.07%
60.96%
Shariah-compliant liquid assets & others
4.21%
27.93%
39.04%
2013
2012
2011
Shariah-compliant local equities
27.28%
26.52%
21.10%
Shariah-compliant foreign equities
22.40%
17.97%
22.62%
Shariah-compliant fixed income securities
30.08%
27.35%
37.90%
Shariah-compliant liquid assets & others
20.24%
28.16%
18.38%
2013
2012
2011
Shariah-compliant foreign equities
96.51%
89.44%
85.45%
Shariah-compliant liquid assets & others
3.49%
10.56%
14.55%
Financial Year Ended: 30 September
CIMB Islamic Balanced Fund Note 6
CIMB Islamic Global Commodities Equity Fund
Note 7
Financial Year Ended: 31 October
CIMB Islamic Equity Fund Note 8
2013
2012
2011
Shariah-compliant local equities
49.00%
47.41%
41.00%
Shariah-compliant foreign equities
47.37%
46.91%
42.06%
Shariah-compliant liquid assets & others
3.63%
5.68%
16.94%
Financial Year Ended: 30 November
CIMB Islamic DALI Equity Theme Fund Note 9
Shariah-compliant local equities
Shariah-compliant liquid assets & others
CIMB Islamic Money Market Fund
Note 10
2013
2012
2011
93.54%
89.48%
73.66%
6.46%
10.52%
26.34%
2013
2012
2011
Shariah-compliant fixed income securities
59.37%
71.10%
90.37%
Shariah-compliant liquid assets & others
40.63%
28.90%
9.63%
78
Financial Year Ended: 31 December
CIMB Islamic Balanced Growth Fund Note 11
2013
2012
2011
Shariah-compliant local equities
58.09%
53.31%
53.17%
Shariah-compliant fixed income securities
28.75%
31.89%
30.19%
Shariah-compliant liquid assets & others
13.16%
14.80%
16.64%
2013
2012
2011
Shariah-compliant local equities
99.32%
80.27%
81.29%
Shariah-compliant liquid assets & others
0.68%
19.73%
18.71%
2014
2013
2012
Shariah-compliant fixed income securities
99.89%
100.00%
100.00%
Shariah-compliant liquid assets & others
0.11%
-
-
CIMB Islamic Equity Aggressive Fund Note 12
Financial Year Ended: 31 January
CIMB Islamic Deposit Fund Note 13
Financial Year Ended: 28 February (29 February in the event of a leap year)
CIMB Islamic Al-Azzam Equity Fund Note 14
2014
2013
2012
Shariah-compliant local equities
79.68%
96.49%
-
Shariah-compliant liquid assets & others
20.32%
3.51%
-
2014
2013
2012
Shariah-compliant local equities
18.59%
13.87%
7.62%
Shariah-compliant fixed income securities
70.37%
70.39%
87.13%
Shariah-compliant liquid assets & others
11.04%
15.74%
5.25%
2013
2012
2011
Shariah-compliant foreign equities
71.57%
85.22%
93.42
Shariah-compliant liquid assets & others
28.43%
14.78%
6.58
Financial Year Ended: 31 March
CIMB Islamic Enhanced Sukuk Fund Note 15
Financial Year Ended: 30 April
CIMB Islamic Asia Pacific Equity Fund Note 16
The asset allocation data as at 30 April 2014 are not yet available.
Notes:
Note 1
-
For DALI, The asset allocation of the Fund was increased to above 90% after the last yearend and was subsequently
maintained at that level for most of the period.
Note 2
-
For DALI2, cash holding has increased from 7.47% to 12.91% in line with the view to position the portfolio to be more
defensive.
Note 3
-
For ISCF, the equity exposure was raised to 93.97% as at 31 May 2013 compared with 87.99% a year ago.
Throughout most of the year under review, the Fund was only fairly invested in view of the volatile markets. Equity
exposure was brought up sharply after the General Elections in early May 2013 so that the Fund could fully participate
in the market re-rating.
Note 4
-
For IGCEF, we have 8.81% in cash. We are looking for opportunities to invest.
Note 5
-
For ISF, as at 31 August 2013, about 95.79% of the Fund‟s assets were invested in Shariah-compliant securities
compared to 72.07% previously. Liquidity is maintained for the Fund to take advantage of primary issues as well as to
facilitate any redemption.
Note 6
-
For IBF, we increased investments across all asset classes, particularly foreign securities and this led to a substantial
decrease in cash holdings
Note 7
-
For ICEF, the fund was fully invested during the period under review. A minimal level of liquid assets was maintained
for liquidity purposes.
Note 8
-
For IEF,the asset allocation of the Fund remained almost unchanged with only a 1.5% increase in domestic equities
offset by a similar reduction in foreign equities.
Note 9
-
For DALI3, The Fund ended the year under review with equity allocation of 93.54%. The equity allocation was
maintained at above 90.00% for most of the year.
Note 10
-
For IMMF, the Fund has generally maintained its asset allocation between cash and short term Sukuks.
59.37% was invested in unquoted Sukuks, and remainder 40.63% invested in Cash and Other Net
Assets.
Note 11
-
For IBGF, Equity allocation increased due to capital appreciation of the funds‟ equity holdings.
79
Note 12
-
For IEAF, the Fund ended the latest financial year with an equity allocation of 99.32% as the year end of the Fund
coincided with a relatively large redemption. For most of the year, the equity allocation of the Fund was maintained at
between 90%-95%.
Note 13
-
For IDF, the Fund was 99.89% invested in deposits with Shariah-compliant financial institutions and the remainder in
cash and other liquid assets.
Note 14
-
For Azzam, the Fund held 20.3% cash as at 28 February 2014 due to large subscriptions of units of the Fund. The
cash has since been invested. The Fund is currently 90% invested in Shariah compliant equities.
Note 15
-
For IESF, the Fund was 70.37% (from 70.39% previously) invested in fixed income securities while the cash portion
was lower from 15.74% to 11.04%.
Note 16
-
For IAPEF, the Fund was 85.00% invested in equities and was down from 93.35% a year ago. Equity markets around
the globe has a sharp rally in the first quarter of 2012 on hopes of the US growth would continue to be strong, the
European debt crisis would fade away and policy responses/easings in China and elsewhere. We believe the rally was
not sustainable, hence, took the opportunity to take profit and lighten the equity exposure. This would give us the
ammunitions to bargain hunt when prices correct.
Past performance of the Funds is not an indication of its future performance.
80
HISTORICAL HIGHLIGHTS OF THE FUNDS
FINANCIAL STATEMENT OF THE FUNDS
CIMB Islamic Asia Pacific Equity Fund – FYE: 30 April
Income Statement
Total Shariah-compliant investment income
Total expenses
Net (loss)/income before taxation
Net (loss)/income after taxation
Statement of assets and liabilities
Total Shariah-compliant investment
Total Shariah-compliant other assets
Total Shariah-compliant assets
Total liabilities
Net assets attributable to Unit holders
NAV per unit (RM)
2013
RM
2,522,409
863,222
1,659,187
1,640,022
2012
RM
(4,680,496)
1,100,356
(5,780,852)
(5,895,012)
2011
RM
3,734,455
1,801,312
1,933,143
1,721,230
2013
RM
30,264,164
12,606,754
42,870,918
664,991
42,205,927
2012
RM
24,690,847
4,714,014
29,404,861
431,305
28,973,556
2011
RM
45,223,926
5,312,533
50,536,459
2,125,557
48,410,902
0.5505
0.5170
0.5959
2013
RM
595,398,590
52,714,922
542,683,668
541,125,218
2012
RM
209,650,681
40,725,398
168,925,283
168,036,676
2011
RM
399,614,199
28,448,563
371,165,636
367,199,790
2013
RM
2,850,548,219
305,660,343
3,156,208,562
54,346,082
3,101,862,480
2012
RM
2,140,487,864
303,650,717
2,444,138,581
20,877,684
2,423,260,897
2011
RM
1,551,322,791
184,050,088
1,735,372,879
51,134,853
1,684,238,026
1.4554
1.2538
1.2370
2013
RM
21,484,942
3,062,478
18,422,464
18,287,689
2012
RM
1,635,388
4,415,795
(2,780,407)
(3,010,979)
2011
RM
57,639,304
6,490,210
51,149,094
50,424,198
2013
RM
73,807,956
12,364,808
86,172,764
1,420,336
84,752,428
2012
RM
135,129,087
11,686,589
146,815,676
924,527
145,891,149
2011
RM
193,081,706
18,919,656
212,001,362
5,359,103
206,642,259
1.2153
1.0938
1.1665
2013
RM
43,753,755
4,289,169
39,464,586
39,375,179
2012
RM
4,387,933
4,444,677
(56,744)
(325,657)
2011
RM
30,470,224
4,646,698
25,823,526
25,419,356
Note: The latest audited financial statements as at 30 April 2014 for the IAEPF are not yet available.
CIMB Islamic DALI Equity Growth Fund – FYE: 31 May
Income Statement
Total Shariah-compliant investment income
Total expenses
Net (loss)/income before taxation
Net (loss)/income after taxation
Statement of assets and liabilities
Total Shariah-compliant investment
Total Shariah-compliant other assets
Total Shariah-compliant assets
Total liabilities
Net assets attributable to Unit holders
NAV per unit (RM)
CIMB Islamic DALI Equity Fund – FYE: 31 May
Income Statement
Total Shariah-compliant investment income
Total expenses
Net (loss)/income before taxation
Net (loss)/income after taxation
Statement of assets and liabilities
Total Shariah-compliant investment
Total Shariah-compliant other assets
Total Shariah-compliant assets
Total liabilities
Net assets attributable to Unit holders
NAV per unit (RM) (ex-distribution)
CIMB Islamic Small Cap Fund – FYE: 31 May
Income Statement
Total Shariah-compliant investment income
Total expenses
Net (loss)/income before taxation
Net (loss)/income after taxation
81
Statement of assets and liabilities
Total Shariah-compliant investment
Total Shariah-compliant other assets
Total Shariah-compliant assets
Total liabilities
Net assets attributable to Unit holders
NAV per unit (RM)
CIMB Islamic Greater China Equity Fund – FYE: 31 July
Income Statement
Total Shariah-compliant investment income
Total expenses
Net (loss)/income before taxation
Net (loss)/income after taxation
Statement of assets and liabilities
Total Shariah-compliant investment
Total Shariah-compliant other assets
Total Shariah-compliant assets
Total liabilities
Net assets attributable to Unit holders
NAV per unit (RM)
CIMB Islamic Sukuk Fund – FYE: 31 August
Income Statement
Total Shariah-compliant investment income
Total expenses
Net (loss)/income before taxation
Net (loss)/income after taxation
Statement of assets and liabilities
Total Shariah-compliant investment
Total Shariah-compliant other assets
Total Shariah-compliant assets
Total liabilities
Net assets attributable to Unit holders
NAV per unit (RM) (ex-distribution)
CIMB Islamic Balanced Fund – FYE: 30 September
Income Statement
Total Shariah-compliant investment income
Total expenses
Net (loss)/income before taxation
Net (loss)/income after taxation
Statement of assets and liabilities
Total Shariah-compliant investment
Total Shariah-compliant other assets
Total Shariah-compliant assets
Total liabilities
Net assets attributable to Unit holders
NAV per unit (RM) (ex-distribution)
CIMB Islamic Global Commodities Equity Fund – FYE: 30 September
Income Statement
Total Shariah-compliant investment income
Total expenses
Net (loss)/income before taxation
Net (loss)/income after taxation
82
2013
RM
143,309,841
18,319,610
161,629,451
9,139,134
152,490,317
2012
RM
124,868,334
18,956,312
143,824,646
1,907,027
141,917,619
2011
RM
133,225,425
38,626,752
171,852,177
9,390,108
162,462,069
0.9090
0.6870
0.6926
2013
RM
1,195,583
420,313
775,270
760,952
2012
RM
(1,502,935)
708,181
(2,211,116)
(2,232,607)
2011
RM
2,905,037
908,203
1,996,834
1,967,992
2013
RM
8,072,775
1,407,951
9,480,726
620,666
8,860,060
2012
RM
14,542,570
1,026,716
15,569,286
575,152
14,994,134
2011
RM
17,506,221
1,769,415
19,275,636
258,456
19,017,180
0.2549
0.2336
0.2565
2013
RM
4,242,737
1,250,262
2,992,475
2,992,475
2012
RM
3,244,188
79,850
3,164,338
3,164,338
2011
RM
1,197,752
215,004
982,748
982,748
2013
RM
107,864,742
6,025,429
113,890,171
1,287,172
112,602,999
2012
RM
65,717,246
30,808,277
96,525,523
5,340,235
91,185,288
2011
RM
19,125,205
12,578,333
31,703,538
335,229
31,368,309
1.3312
1.3023
1.2270
2013
RM
33,781,153
7,299,879
26,481,274
26,312,358
2012
RM
23,945,219
4,083,153
19,862,066
19,758,567
2011
RM
3,072,248
3,809,297
(737,049)
(857,866)
2013
RM
301,113,294
78,490,953
379,604,247
2,149,346
377,454,901
2012
RM
191,940,522
84,859,164
276,799,686
9,882,662
266,917,024
2011
RM
124,843,980
29,653,936
154,497,916
1,466,753
153,031,163
0.4599
0.4260
0.4279
2013
RM
1,578,216
882,561
695,655
603,585
2012
RM
659,086
1,035,272
(376,186)
(532,328)
2011
RM
(7,748,747)
1,024,302
(8,773,049)
(8,785,494)
Statement of assets and liabilities
Total Shariah-compliant investment
Total Shariah-compliant other assets
Total Shariah-compliant assets
Total liabilities
Net assets attributable to Unit holders
NAV per unit (RM) (ex-distribution)
CIMB Islamic Equity Fund – FYE: 31 October
Income Statement
Total Shariah-compliant investment income
Total expenses
Net (loss)/income before taxation
Net (loss)/income after taxation
Statement of assets and liabilities
Total Shariah-compliant investment
Total Shariah-compliant other assets
Total Shariah-compliant assets
Total liabilities
Net assets attributable to Unit holders
NAV per unit (RM) (ex-distribution)
CIMB Islamic DALI Equity Theme Fund – FYE: 30 November
Income Statement
Total Shariah-compliant investment income
Total expenses
Net (loss)/income before taxation
Net (loss)/income after taxation
Statement of assets and liabilities
Total Shariah-compliant investment
Total Shariah-compliant other assets
Total Shariah-compliant assets
Total liabilities
Net assets attributable to Unit holders
NAV per unit (RM)
CIMB Islamic Money Market Fund – FYE: 30 November
Income Statement
Total Shariah-compliant investment income
Total expenses
Net (loss)/income before taxation
Net (loss)/income after taxation
Statement of assets and liabilities
Total Shariah-compliant investment
Total Shariah-compliant other assets
Total Shariah-compliant assets
Total liabilities
Net assets attributable to Unit holders
NAV per unit (RM)
CIMB Islamic Balanced Growth Fund – FYE: 31 December
Income Statement
Total Shariah-compliant investment income
Total expenses
Net (loss)/income before taxation
Net (loss)/income after taxation
83
2013
RM
21,496,307
859,922
22,356,229
84,381
22,271,848
2012
RM
35,870,462
7,074,577
42,945,039
2,830,418
40,114,621
2011
RM
28,450,873
5,640,833
34,091,706
781,881
33,309,825
0.2352
0.2226
0.2224
2013
RM
7,860,473
1,125,723
6,734,750
6,670,536
2012
RM
6,090,479
1,075,359
5,015,120
4,869,136
2011
RM
687,719
1,716,071
(1,028,352)
(1,094,702)
2013
RM
41,973,722
2,201,422
44,175,144
618,908
43,556,236
2012
RM
45,074,412
2,944,279
48,018,691
214,822
47,803,869
2011
RM
46,513,919
10,556,414
57,070,333
1,246,799
55,823,534
0.8257
0.7596
0.7356
2013
RM
145,109,080
12,788,439
132,320,641
131,558,490
2012
RM
56,634,347
10,195,595
46,438,752
46,263,491
2011
RM
37,285,505
10,937,941
26,347,564
25,711,039
2013
RM
832,742,412
75,746,042
908,488,454
18,236,122
890,252,332
2012
RM
460,467,080
56,287,510
516,754,590
2,157,568
514,597,022
2011
RM
376,494,716
138,720,539
515,215,255
3,804,772
511,410,483
0.3817
0.3274
0.3003
2013
RM
17,335,116
2,652,208
14,683,249
14,683,249
2012
RM
16,765,084
2,771,128
13,993,956
13,998,191
2011
RM
10,908,591
1,807,134
9,101,457
9,111,710
2013
RM
322,063,770
221,836,854
543,900,624
1,409,408
542,491,216
2012
RM
365,621,016
152,639,884
518,260,900
3,926,799
514,334,101
2011
RM
355,800,872
45,749,460
401,550,332
7,890,169
393,660,163
1.0573
1.0487
1.0347
2013
RM
42,961,806
6,351,800
36,610,006
36,513,685
2012
RM
24,304,013
4,548,423
19,755,590
19,732,990
2011
RM
14,947,848
3,215,117
11,732,731
11,667,556
Statement of assets and liabilities
Total Shariah-compliant investment
Total Shariah-compliant other assets
Total Shariah-compliant assets
Total liabilities
Net assets attributable to Unit holders
NAV per unit (RM)
CIMB Islamic Equity Aggressive Fund – FYE: 31 December
Income Statement
Total Shariah-compliant investment income
Total expenses
Net (loss)/income before taxation
Net (loss)/income after taxation
Statement of assets and liabilities
Total Shariah-compliant investment
Total Shariah-compliant other assets
Total Shariah-compliant assets
Total liabilities
Net assets attributable to Unit holders
NAV per unit (RM)
CIMB Islamic Deposit Fund – FYE: 31 January
Income Statement
Total Shariah-compliant investment income
Total expenses
Net (loss)/income before taxation
Net (loss)/income after taxation
Statement of assets and liabilities
Total Shariah-compliant investment
Total Shariah-compliant other assets
Total Shariah-compliant assets
Total liabilities
Net assets attributable to Unit holders
NAV per unit (RM)
2013
RM
283,063,146
45,802,456
328,865,602
2,882,579
325,983,023
2012
RM
221,480,007
45,640,183
267,120,190
7,169,289
259,950,901
2011
RM
150,788,855
30,769,798
181,558,653
690,958
180,867,695
0.7236
0.6375
0.5979
2013
RM
20,296,618
2,098,312
18,198,306
18,077,075
2012
RM
11,872,604
2,607,996
9,264,608
9,205,579
2011
RM
3,016,960
3,464,718
(447,758)
(667,695)
2013
RM
89,444,451
6,259,033
95,703,484
5,649,828
90,053,656
2012
RM
94,251,276
23,887,926
118,139,202
717,468
117,421,734
2011
RM
80,416,708
19,775,772
100,192,480
1,296,341
98,896,139
0.8749
0.7120
0.6568
2014
RM
2,189,418
363,888
1,825,530
1,825,530
2013
RM
4,242,550
715,956
3,526,594
3,526,594
2012
RM
758,110
159,102
599,008
599,008
2014
RM
67,245,788
32,778
67,278,566
41,592
67,236,974
2013
RM
72,190,924
65,142
72,256,066
41,829
72,214,237
2012
RM
65,005,199
12,300
65,017,499
58,910
64,958,589
1.0000
1.0000
0.9998
CIMB Islamic Al-Azzam Equity Fund – FYE: 28 February (29 February in the event of a leap year)
Income Statement
2014
2013
RM
RM
Total Shariah-compliant investment income
10,154,698
568,850
Total expenses
936,218
807,441
Net (loss)/income before taxation
9,218,480
(238,591)
Net (loss)/income after taxation
9,178,863
(248,104)
Statement of assets and liabilities
Total Shariah-compliant investment
Total Shariah-compliant other assets
Total Shariah-compliant assets
Total liabilities
Net assets attributable to Unit holders
NAV per unit (RM)
CIMB Islamic Enhanced Sukuk Fund – FYE: 31 March
Income Statement
2014
RM
32,422,416
9,098,363
41,520,779
855,039
40,665,740
2013
RM
59,277,666
9,048,629
68,326,295
6,889,727
61,436,568
0.3073
0.2487
2014
RM
3,788,673
698,415
3,090,258
3,090,258
Total Shariah-compliant investment income
Total expenses
Net (loss)/income before taxation
Net (loss)/income after taxation
84
2013
RM
1,927,274
500,694
1,426,580
1,426,708
2012
RM
1,378,373
335,021
1,043,352
1,028,220
Statement of assets and liabilities
2013
RM
46,903,391
6,160,835
53,064,226
343,860
52,720,366
Total Shariah-compliant investment
Total Shariah-compliant other assets
Total Shariah-compliant assets
Total liabilities
Net assets attributable to Unit holders
NAV per unit (RM)
1.0478
85
2012
RM
47,178,089
9,234,812
56,412,901
419,889
55,993,012
2011
RM
25,929,610
13,264,713
39,194,323
11,825,419
27,368,904
1.0310
1.0802
TOTAL ANNUAL EXPENSES
The following table reflects the total annual expenses incurred by the Funds in the preceding financial year/period:
Management Fee
Funds
Trustee Fee
Other expenses
Total annual expenses
RM
%
RM
%
RM
%
RM
%
568,632
1.35
106,218
0.25
188,372
0.45
863,222
2.05
CIMB Islamic DALI Equity Growth
Fund
41,759,016
1.35
1,847,553
0.06
9,108,353
0.29
52,714,922
1.70
CIMB Islamic DALI Equity Fund
2,174,430
2.57
132,910
0.16
755,138
0.89
3,062,478
3.61
CIMB Islamic Small Cap Fund
2,620,144
1.72
84,978
0.06
1,584,047
1.04
4,289,169
2.81
227,650
2.57
58,929
0.67
133,734
1.51
420,313
4.75
1,133,736
1.01
79,191
0.07
37,335
0.03
1,250,262
1.11
1,133,736
1.01
79,191
0.07
37,335
0.03
1,250,262
1.11
695,863
3.12
48,332
0.22
138,366
0.62
882,561
3.96
712,502
1.64
103,438
0.24
309,783
0.71
1,125,723
2.58
CIMB Islamic DALI Equity Theme
Fund
9,502,242
1.07
443,438
0.05
2,842,759
0.32
12,788,439
1.44
CIMB Islamic Money Market Fund
2,460,723
0.45
147,643
0.03
43,842
0.01
2,652,208
0.49
CIMB Islamic Balanced Growth Fund
4,211,661
1.29
196,541
0.06
1,943,598
0.60
6,351,800
1.95
CIMB Islamic Equity Aggressive
Fund
1,403,144
1.56
84,189
0.09
610,979
0.68
2,098,312
2.33
312,237
0.46
27,754
0.04
23,897
0.04
363,888
0.54
566,444
1.39
18,880
0.05
350,894
0.86
936,218
2.30
523,006
0.99
36,611
0.07
138,798
0.26
698,415
1.32
As at 30 April 2013, in %
CIMB Islamic Asia Pacific Equity
Fund
As at 31 May 2013, in %
As at 31 July 2013, in %
CIMB Islamic Greater China Equity
Fund
As at 31 August 2013, in %
CIMB Islamic Sukuk Fund
As at 30 September 2013, in %
CIMB Islamic Balanced Fund
CIMB Islamic Global Commodities
Equity Fund
As at 31 October 2013, in %
CIMB Islamic Equity Fund
As at 30 November 2013, in %
As at 31 December 2013, in %
As at 31 January 2014, in %
CIMB Islamic Deposit Fund
As at 28 February 2014*, in %
CIMB Islamic Al-Azzam Equity Fund
As at 31 March 2014, in %
CIMB Islamic Enhanced Sukuk Fund
* 29 February in the event of a leap year.
The latest audited figures as at 30 April 2014 are not available.
86
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 2013
30 April 2012
30 April 2011
2.34
2.32
2.24
CIMB Islamic Asia Pacific Equity Fund
Financial Year Ended
31 May 2013
31 May 2012
31 May 2011
CIMB Islamic DALI Equity Growth Fund
1.59
1.61
1.88
CIMB Islamic DALI Equity Fund
2.12
2.04
2.77
CIMB Islamic Small Cap Fund
Financial Year Ended
1.97
2.00
3.71
31 July 2013
31 July 2012
31 July 2011
CIMB Islamic Greater China Equity Fund
Financial Year Ended
CIMB Islamic Sukuk Fund
2.63
2.58
2.24
31 August 2013
31 August 2012
31 August 2011
0.95
0.19
1.14
Note 1
Financial Year Ended
30 September 2013
30 September 2012
30 September 2011
CIMB Islamic Balanced Fund
1.69
1.73
2.37
CIMB Islamic Global Commodities Equity Fund
2.36
2.33
2.06
31 October 2013
31 October 2012
31 October 2011
Financial Year Ended
CIMB Islamic Equity Fund
1.98
1.81
2.10
30 November 2013
30 November 2012
30 November 2011
CIMB Islamic DALI Equity Theme Fund
1.58
1.62
2.11
CIMB Islamic Money Market Fund
0.54
0.49
0.59
Financial Year Ended
Financial Year Ended
31 December 2013
31 December 2012
31 December 2011
CIMB Islamic Balanced Growth Fund
1.62
1.62
1.68
CIMB Islamic Equity Aggressive Fund
1.65
1.67
1.65
31 January 2014
31 January 2013
31 January 2012
0.52
0.54
0.64
28 February 2014
28 February 2013
Financial Year Ended
CIMB Islamic Deposit Fund
Financial Year Ended
CIMB Islamic Al-Azzam Equity Fund
Note 2
Financial Year Ended
1.71
0.91
31 March 2014
31 March 2013
31 March 2012
1.14
1.13
1.21
CIMB Islamic Enhanced Sukuk Fund
The latest audited figures as at 30 April 2014 are not yet available.
Notes:
Note 1
-
The changes in MER is because of the increased in expenses of the Fund.
Note 2
-
The changes in MER is because of the increased in expenses of the Fund.
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 the Funds’ future performance.
The Funds’ annual reports are available upon request.
87
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
%
IUTAs
%
CIMB Islamic DALI Equity Growth Fund
6.50
6.50
CIMB Islamic DALI Equity Fund
6.50
6.50
CIMB Islamic DALI Equity Theme Fund
6.50
6.50
CIMB Islamic Al-Azzam Equity Fund
6.50
5.50
CIMB Islamic Equity Fund
6.50
6.50
CIMB Islamic Equity Aggressive Fund
5.00
5.00
CIMB Islamic Small Cap Fund
6.50
6.50
CIMB Islamic Balanced Fund
6.50
6.50
CIMB Islamic Balanced Growth Fund
6.00
5.00
CIMB Islamic Enhanced Sukuk Fund
2.00
2.00
CIMB Islamic Sukuk Fund
2.00
2.00
CIMB Islamic Money Market Fund
Nil
Nil
CIMB Islamic Deposit Fund
Nil
Nil
CIMB Islamic Asia Pacific Equity Fund
5.00
5.00
CIMB Islamic Greater China Equity Fund
6.50
6.50
CIMB Islamic Global Commodities Equity Fund
6.50
6.50
Equity Funds
Mixed Asset Funds
Sukuk & Money Market Funds
Regional & Global Funds
*
Notwithstanding the maximum Application Fees disclosed above, investors may negotiate with the distributors for lower
charges. Please note that investors investing via EPF’s Members Investment Scheme will only be charged a maximum
Application Fee of 3.00% 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.
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
No dilution fee 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.
88
For example, you had invested in a fund with an Application Fee of 2.00% on the NAV per unit and now wish to switch to another
fund which has an Application Fee of 5.50% on the NAV per unit. Hence, you will be charged a Switching Fee of 3.50% 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, 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.
Maximum Management Fee (% p.a. of the NAV of
the Fund)
Funds
Equity Funds
CIMB Islamic DALI Equity Growth Fund
CIMB Islamic DALI Equity Fund
CIMB Islamic DALI Equity Theme Fund
CIMB Islamic Al-Azzam Equity Fund
CIMB Islamic Equity Fund
CIMB Islamic Equity Aggressive Fund
CIMB Islamic Small Cap Fund
Mixed Asset Funds
CIMB Islamic Balanced Fund
CIMB Islamic Balanced Growth Fund
1.50
1.85
1.50
1.50
1.50
1.50
1.85
1.50
1.50
Sukuk & Money Market Funds
CIMB Islamic Enhanced Sukuk Fund
CIMB Islamic Sukuk Fund
CIMB Islamic Money Market Fund
CIMB Islamic Deposit Fund
1.00
0.95
0.50
0.45
Regional & Global Funds
CIMB Islamic Asia Pacific Equity Fund
CIMB Islamic Greater China Equity Fund
CIMB Islamic Global Commodities Equity Fund
1.80
1.85
1.85
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
Note: Management Fee shall be computed on the basis of 365 days (or 366 days in a leap year).
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.
89
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
0.06
0.06
0.07
0.05
0.06
0.09
0.06
Nil
Nil
NOTE 2
Nil
Nil
NOTE 2
Nil
Nil
NOTE 3
Nil
Nil
NOTE 3
Nil
Nil
0.10
0.07
Nil
NOTE 2
NOTE 3
Nil
CIMB Islamic Enhanced Sukuk Fund
CIMB Islamic Sukuk Fund
CIMB Islamic Money Market Fund
CIMB Islamic Deposit Fund
0.07
0.06
0.03
0.04
NOTE 2
Nil
NOTE 2
Nil
Nil
Nil
Nil
Nil
Regional & Global Funds
CIMB Islamic Asia Pacific Equity Fund
CIMB Islamic Greater China Equity Fund
CIMB Islamic Global Commodities Equity Fund
*
Subject to a minimum fee of RM12,000 per annum.
0.07
0.08
0.07 *
NOTE 2
NOTE 2
NOTE 2
NOTE 3
NOTE 3
NOTE 3
Funds
Equity Funds
CIMB Islamic DALI Equity Growth Fund
CIMB Islamic DALI Equity Fund
CIMB Islamic DALI Equity Theme Fund
CIMB Islamic Al-Azzam Equity Fund
CIMB Islamic Equity Fund
CIMB Islamic Equity Aggressive Fund
CIMB Islamic Small Cap Fund
Mixed Asset Funds
CIMB Islamic Balanced Fund
CIMB Islamic Balanced Growth Fund
Sukuk & Money Market Funds
NOTE 1 - 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)
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 IAPEF, IGCEF & ICEF 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
Note: Trustee Fee shall be computed on the basis of 365 days (or 366 days in a leap year).
90
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/Takaful, 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 foreign 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
cost of convening and holding meetings of Unit holders (other than those meetings convened for the benefit of the Manager or
the Trustees); and
all costs, bank charges and expenses related to income distribution of the Funds; for example, postage and printing of all
cheques, statements and notices to Unit holders 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. 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) 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.
All fees and charges payable to the Manager and/or the Fund are subject to any applicable taxes and/or duties as may be
imposed by the government or other authorities from time to time.
91
TRANSACTION INFORMATION
UNIT PRICING
The Manager adopts a single pricing method to price the units in relation to an application for and a redemption of units. This
means that the application for and redemption of units will be carried out at NAV per unit. The Application Fee (if any) will be
computed and charged separately based on your application amount. The Application Fee (if any) may differ between distribution
channels as well as for applications made under the EPF‟s Members Investment Scheme (where available). The single pricing for
the application for or redemption of units shall be the daily NAV per unit at the next valuation point after the Manager receives the
relevant completed application or redemption form (i.e. forward prices are used). However, for investments into CIMB Islamic
Money Market Fund, applications made under the EPF‟s 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.
Funds without foreign investments:
The valuation point will be carried out on each Business Day at the close of the Bursa Malaysia. 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.
Funds with foreign investments:
The valuation point for a Business Day will be carried out on the next Business Day (T+1) by 4:00 p.m. This is to cater for the
currency translation of the foreign securities/instruments to the Funds‟ base currency based on the bid exchange rate quoted by
Bloomberg/Reuters at UK time 4:00 p.m. which is equivalent to 11:00 p.m. or 12:00 a.m. midnight (Malaysian time) on the same
day, or such other time as stipulated in the Investment Management Standards issued by the Federation of Investment Managers
Malaysia. The unit price (i.e. NAV per unit of the Fund) for a Business Day is available on our website at http://www.cimbprincipal.com.my by 5:30 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) 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 Funds with foreign investments)
For a transaction made before 4:00 p.m. on a Business Day
For the market close of 18 August 2014, the unit price for the Business Day will be calculated on the next Business Day, that is, 19
August 2014. The unit pricing will be made known on our website by 5:30 p.m. on 19 August 2014. However, the publication date
on local dailies for the prices as at 18 August 2014 will be 20 August 2014.
For a transaction made at or after 4:00 p.m. on a Business Day
For the market close of 18 August 2014, the unit price will be for the next Business Day, which will be calculated two (2) days later,
that is, 20 August 2014. The unit pricing will be made known on our website by 5:30 p.m. on 20 August 2014. However, the
publication date on local dailies will be 21 August 2014.
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 Federation of Investment Managers Malaysia – Funds Malaysia
System for publication. The Manager, however, will not be held liable for any error or inaccuracies in prices published in the local
dailies.
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.
92
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 (0.50%) 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
The number of units an investor receives will be rounded down to the second decimal place.
Illustration 1
Calculation of number of units received, Application Fee and total amount paid by investor
Assumptions:
NAV per unit
=
Application Fee charged by CWA
=
Application Fee charged by IUTA
=
An investor wishes to invest RM10,000 in the Fund through an IUTA.
RM0.5000 (truncated to 4 decimal places)
6.50%
5.50%
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 5.50%
= 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 1.00% 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
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 1.00%
= 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.
93
TRANSACTION DETAILS
INVESTING
Who can invest?
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 any resident of the USA (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 Unit holders and both applicants must be at least eighteen (18) years of age.
In the event of the demise of a joint Unit holder, the Manager is authorised to recognize only the surviving joint Unit 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; and
IUTAs
The addresses and contact numbers of the head office and regional offices of CIMB-Principal are disclosed in the “Corporate
Directory” chapter. The 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.
Regular Savings Plan (RSP)^
Minimum initial
Minimum additional
investment#
investment#
(RM)
(RM)
Minimum initial
investment# (RM)
Minimum
additional
investment# (RM)
CIMB Islamic DALI Equity Growth Fund
500
200
500
200
CIMB Islamic DALI Equity Fund
500
200
500
200
CIMB Islamic DALI Equity Theme Fund
500
200
500
200
CIMB Islamic Al-Azzam Equity Fund
500
200
500
200
CIMB Islamic Equity Fund
500
200
500
200
CIMB Islamic Equity Aggressive Fund
500
200
500
200
CIMB Islamic Small Cap Fund
500
200
500
200
CIMB Islamic Balanced Fund
500
200
500
200
CIMB Islamic Balanced Growth Fund
500
200
500
200
CIMB Islamic Enhanced Sukuk Fund
2,000
500
2,000
500
CIMB Islamic Sukuk Fund
2,000
500
2,000
500
CIMB Islamic Money Market Fund
10,000
1,000
N/A
N/A
CIMB Islamic Deposit Fund
10,000
1,000
10,000
1,000
Equity Funds
Mixed Asset Funds
Sukuk & Money Market Funds
94
Regular Savings Plan (RSP)^
Minimum initial
Minimum additional
investment#
investment#
(RM)
(RM)
Minimum initial
investment# (RM)
Minimum
additional
investment# (RM)
CIMB Islamic Asia Pacific Equity Fund
500
200
500
200
CIMB Islamic Greater China Equity Fund
500
200
500
200
Regional & Global Funds
CIMB Islamic Global Commodities Equity
500
200
500
200
Fund
#
For avoidance of doubt, the amount stipulated in the minimum initial contribution and minimum subsequent contribution includes
any applicable fees and charges, such as sales charge, as the case may be. In other words, the amount is gross of fees and
charges.
^ 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 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‟s 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‟s 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 Distributors or the head office of CIMB-Principal (for Institutional Marketing sales) after
completing an application form and attaching a copy of each applicant‟s identity card, passport or other identifications. On the
application form, please 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 Distributor or the Manager
as the case may be);

directly from your bank account held with Distributors, where applicable;

by cash if the application is made in person at any branch of Distributors, where acceptable; or

such other mode of payment as may be approved by the Manager and/or the relevant authorities from time to time subject
always to any charges, fees and expenses incurred or to be incurred in making or facilitating such other mode of payment
being borne by the Unit holder. Such other mode of payment and/or the manner in which such payment is to be made may be
subject further to such limit(s), restriction(s) and/or terms and conditions as may be imposed by the Manager and/or the
relevant authorities from time to time.
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 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 Distributor to credit a predetermined amount to the Fund each month. You can cancel your RSP at any time by providing written instructions to the relevant
Distributor to cancel your standing instruction.
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‟s 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 and money is received 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 or money
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 where money is received 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 and upon clearance of the cheque 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 and upon clearance of the cheque 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.
95
WITHDRAWALS
The minimum withdrawal 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 Distributors. For
Institutional Marketing sales, please go to the head office of CIMB-Principal. Please note that for EPF Investments, your withdrawal
proceeds will be paid to EPF.
Minimum withdrawal*
Equity Funds
CIMB Islamic DALI Equity Growth Fund
CIMB Islamic DALI Equity Fund
CIMB Islamic DALI Equity Theme Fund
CIMB Islamic Al-Azzam Equity Fund
CIMB Islamic Equity Fund
CIMB Islamic Equity Aggressive Fund
CIMB Islamic Small Cap Fund
RM200 or 200 units
RM200 or 200 units
RM200 or 800 units
RM200 or 800 units
RM200 or 400 units
RM200 or 200 units
RM200 or 400 units
Mixed Asset Funds
CIMB Islamic Balanced Fund
CIMB Islamic Balanced Growth Fund
RM200 or 400 units
RM200 or 400 units
Sukuk & Money Market Funds
CIMB Islamic Enhanced Sukuk Fund
CIMB Islamic Sukuk Fund
CIMB Islamic Money Market Fund
CIMB Islamic Deposit Fund
RM500 or 500 units
RM500 or 500 units
RM1,000 or 1,000 units
RM1,000
Regional & Global Funds
CIMB Islamic Asia Pacific Equity Fund
CIMB Islamic Greater China Equity Fund
CIMB Islamic Global Commodities Equity Fund
*
RM200 or 400 units
RM200 or 800 units
RM200 or 800 units
Whichever is higher in value (RM) or such other amount as the Manager may from time to time decide and 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.
Processing a withdrawal
If CIMB-Principal receives a valid withdrawal request before 4:00 p.m., CIMB-Principal 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 CIMB Islamic
Sukuk Fund, CIMB Islamic Small Cap Fund and CIMB Islamic Enhanced Sukuk Fund, if the Fund‟s total redemption amount is
fifteen percent (15%) or more of the total NAV of the Fund of the day, the Manager is allowed to pay Unit holder(s) within fifteen
(15) calendar 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.
Illustration for CIMB Islamic Deposit Fund and CIMB Islamic Money Market Fund:
Given that an investor wishes to withdraw RM35 million from his investment in CIMB Islamic Deposit Fund on 12 August 2014, he
must give the Manager a prior written notice on 29 July 2014. The withdrawal amount will be paid in RM to the unit holder by 15
August 2014.
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.
96
MINIMUM BALANCE
The minimum balances that must be maintained in the Funds are stipulated in the table below.
Minimum balance
(units)
Equity Funds
CIMB Islamic DALI Equity Growth Fund
CIMB Islamic DALI Equity Fund
CIMB Islamic DALI Equity Theme Fund
CIMB Islamic Al-Azzam Equity Fund
CIMB Islamic Equity Fund
CIMB Islamic Equity Aggressive Fund
CIMB Islamic Small Cap Fund
250
250
1,000
1,000
500
250
500
Mixed Asset Funds
CIMB Islamic Balanced Fund
CIMB Islamic Balanced Growth Fund
500
500
Sukuk & Money Market Funds
CIMB Islamic Enhanced Sukuk Fund
CIMB Islamic Sukuk Fund
CIMB Islamic Money Market Fund
CIMB Islamic Deposit Fund
1,000
1,000
5,000
5,000
Regional & Global Funds
CIMB Islamic Asia Pacific Equity Fund
CIMB Islamic Greater China Equity Fund
CIMB Islamic Global Commodities Equity Fund
500
1,000
1,000
If the balance (i.e. number of units) 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. That amount will be paid in RM within ten (10) calendar
days from the day the Manager receives the complete documentations. Please note that the cooling-off right is only given to first
time investor investing with CIMB-Principal or any Distributor. However, corporations/institutions, CIMB-Principal‟s staff and
person(s) registered to deal in unit trust of CIMB-Principal or any Distributor are not entitled to the cooling-off right.
However, investors who invest via the EPF‟s Members Investment Scheme (where available) are subject to EPF‟s terms and
conditions.
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.
To switch, simply complete a switch request form and send to any branch of any 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. Switching application should be made before
the cut-off time of 4.00 p.m. on any Business Day.
Unit holders of a Fund should note that the price of a Fund to be switched out from and the price of another Fund to be switched
into may be that of different days. The table below sets out the pricing policy for switching out of some of the CIMB-Principal‟s
Funds:
97
Switching type
Switch out fund
Sukuk Fund
Non-money Market Fund
Money Market Fund
^
#
Pricing day (Business Day) ^
Switch in fund
Switch out fund
Switch in fund
Sukuk Fund
T
T
Non-money Market Fund
T
T or T + 1#
Money Market Fund
T
T+4
Sukuk Fund
T
T or T + 1#
Non-money Market Fund
T
T or T + 1#
Money Market Fund
T
T+4
Sukuk Fund
T
T
Non-money Market Fund
T
T
Money Market Fund
T
T+1
Provided all application received by the cut-off time on the same Business Day.
For Funds that have foreign investment exposure switching in to local Funds, the pricing will be made available on T+1 Business
Day.
Notes:
Sukuk Fund refers to IESF and ISF only.
Non-money Market Fund refers to Equity Funds, Mixed Asset Funds and Regional & Global Funds.
Money Market Fund refers to IMMF and IDF only.
Note:
Investors investing under the EPF’s Members Investment Scheme are not allowed to switch in to Funds that have foreign
investment exposure.
TRANSFER FACILITY
Investors are allowed to transfer their unit holdings but this is subject to conditions stipulated in the respective Deeds. 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.
Investors are advised not to make payment in cash when purchasing units of a Fund via any institutional / retail agent.
98
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 as a benchmark*, 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 Al-Azzam Equity Fund
Given its investment objective, the Fund is not expected to pay any
distribution. However, distribution, if any, will be incidental and will vary from
period to period depending on the interest rates*, market conditions and the
performance of the Fund.
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**.
Sukuk & Money Market Funds
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.
Regional & Global Funds
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 Commodities Equity Fund
Given its investment objective, the Fund is not expected to pay any
distribution. Distributions, if any, will be incidental and will vary from period to
period depending on the performance of the Fund.
Notes:
* The Funds do not invest in interest bearing instruments; the interest rate referred herein is to the general interest rate of the
country as a benchmark which may affect the value of the investments of the Funds.
** Pursuant to the Deeds, 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 Sukuk as well as any dividends received) and net realised
99
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.
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, t o 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 will adjust accordingly.
Illustration for the 12-month period ended 30 September 2014.
Net distribution
: 1.68 sen per unit
NAV per unit
Pre distribution
Post distribution
RM0.5186
RM0.5018
All distributions (if any) 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 using the normal rounding policy* to 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 inv estment
from the Fund, those additional units will then be withdrawn and the proceeds will be paid to you. Distribution payments will be
made in RM.
Note:
*A normal rounding in this context means to round the number of units to the nearest two decimal places. When the value of the
third decimal place is 4 or less, it will be rounded down and when the value of the third decimal place is 5 or more, it will be rounded
up.
UNCLAIMED MONIES
Any moneys payable to Unit holders which remain unclaimed after twelve (12) months as prescribed by Unclaimed Moneys Act,
1965 (“UMA”), as may be amended from time to time, will be surrendered to the Registrar of Unclaimed Moneys by the Manager in
accordance with the requirements of the UMA. Thereafter, all claims need to be made by that Unit holder with the Registrar of
Unclaimed Moneys.
However, for income distribution payout to the Unit holders, if any, which remain unclaimed for six (6) months will be reinvested into
the Fund within 30 business days after the expiry of the cheque‟s validity period based on the prevailing NAV per unit of the Fund
on the day of the reinvestment in circumstances where the Unit holder still holds units of the Fund. No Application Fee is payable
for the reinvestment. In the event that the Unit holder no longer holds any unit in the Fund, the distribution money would be subject
to the treatment mentioned in the above paragraph as prescribed by the UMA.
Investors are advised not to make payment in cash when purchasing units of a fund via any institutional / retail agent.
100
THE MANAGER
ABOUT CIMB-PRINCIPAL ASSET MANAGEMENT BERHAD
CIMB-Principal holds a Capital Markets Services License for fund management and dealing in unit trust products 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. In addition, CIMB-Principal is an approved
private retirement scheme provider in Malaysia.
As at LPD, CIMB-Principal was responsible for managing more than RM37.74 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 18
years of experience in the unit trust industry.
As at LPD, the shareholders of the company are CIMB Group (60%) and 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 PFG, 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 38 conventional unit trust funds (including 2 Exchange-Traded Funds) and 19 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 313,
comprising of 265 executives and 48 non-executives, as at LPD.
The primary roles, duties and 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, if any; and
maintaining proper records of the Funds.
SUMMARY OF THE FINANCIAL POSITION OF THE COMPANY
31 December 2013
(RM)
31 December 2012
(RM)
31 December 2011
(RM)
Issued and paid-up share capital
123,474,795
123,474,795
123,474,795
Shareholders‟ funds
399,488,484
334,443,945
294,434,191
Revenue
277,489,369
242,243,020
236,535,782
Profit before taxation
101,924,364
46,158,785
56,598,803
Taxation
24,902,816
5,437,416
13,046,814
Profit after taxation
77,021,548
40,721,369
43,551,989
101
KEY PERSONNEL
Name:
Pedro Esteban Borda
Designation:
Chief Executive Officer, ASEAN Region / Executive Director.
Experience:
He is the Chief Executive Officer, ASEAN Region of CIMB-Principal. He joined CIMB-Principal on 18 March 2013. He
has been a Director of CIMB-Principal since 20 June 2013. Previously, he was the Country Head of Principal Financial
Group Mexico. He joined Principal in 1996 as the Managing Director of Ethika AFJP S.A., a pension company in
Argentina. In 1999, he was relocated to Mexico to become the Managing Director of Principal Afore (wholly-owned
affiliate of PFG). In 2004, he was promoted to Country Head of Principal Mexico.
Qualifications:
Bachelor Degree in Business Administration and a Master Degree in Finance, both from Universidad Argentina de la
Empresa (U.A.D.E).
Name:
Munirah binti Khairuddin
Designation:
Chief Executive Officer / Executive Director.
Experience:
She is the Chief Executive Officer of CIMB-Principal in August 2013. She joined CIMB-Principal on 1 November 2006
and appointed as Deputy Chief Executive Officer in November 2008. She has been an Executive Director of CIMBPrincipal since 31 January 2012 and Commissioner of PT CIMB-Principal Asset Management since 19 August 2011.
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. During her tenure as Deputy CEO from November 2008 to July 2013, she
was responsible for the development of international business opportunities and institutional sales. In Malaysia, she
has overseen retail funds marketing, market development and fund operations. Under her ambit, the company has
spearheaded an international client base, listed exchange traded funds (“ETF”) in Malaysia and Singapore, and
developed products for regional distribution. She also played an integral part in strategic business development
initiatives of CWA (“CIMB Wealth Advisors”).
Qualifications:
Bachelor of Arts (Honours) in Accounting & Financial Analysis, University of Newcastle Upon Tyne, UK; Chartered
Financial Analyst Charterholder; Capital Markets Services Representative‟s License holder for fund management.
Name:
Raymond Tang
Designation:
Chief Investment Officer, ASEAN Region.
Experience:
He has been with CIMB-Principal since 1 October 2004. He has over 25 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 the Chairman of FTSE Bursa
Malaysia Index Advisory Committee. 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).
Qualifications:
Fellow of the Chartered Institute of Management Accountants (CIMA) UK. Holds a Capital Markets Services
Representative‟s License for fund management under CMSA.
Name:
Yap Ben Shiow
Designation:
Head of Compliance.
Experience:
Joined CIMB-Principal on 3 February 2009. He has over 14 years of experience in the capital market. He is a
registered Compliance Officer for CIMB-Principal with the Securities Commission Malaysia. He is the designated
person responsible for compliance matter. Prior to joining CIMB-Principal, he was attached to an asset management
company that focused on private equity investments and held a Capital Markets Services Representative‟s License for
fund management under CMSA from November 2005 to June 2008. Prior to that, he was attached to a reputable and
established unit trust management company for approximately five years. During the period, he was the designated
person for compliance matters. Before his involvement in unit trust industry, he has also gained valuable knowledge in
capital market when he was with an investment company.
Qualifications:
Master of Business Administration from University of South Australia. Bachelor of Business Administration, majoring in
Finance and Management and a Bachelor of Science, majoring in Economics from University of Kentucky, Lexington,
the USA.
102
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 five (5) 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.
INVESTMENT COMMITTEE MEMBERS
Name:
Designation:
Experience:
Qualifications:
Name:
Designation:
Experience:
Qualifications:
Name:
Designation:
Experience:
Qualifications:
Name:
Designation:
Experience:
Qualifications:
Raja Noorma binti Raja Othman
Chief Executive Officer of CIMB-Mapletree Management Sdn. Bhd. and Director of the Group Asset Management
arm of CIMB Group Holdings. Director of CIMB-Principal.
She is the CIMB Head of Group Asset Management since 24 April 2007. She is also on the Board of CIMBPrincipal and is a member of its Investment Committee.
Prior to joining CIMB Group Holdings 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 initial public offering 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.
Bachelor of Business Administration degree from Ohio University, USA under a twinning programme with Institut
Teknologi MARA.
Mohamad Safri bin Shahul Hamid
Deputy Chief Executive Officer/ Senior Managing Director of CIMB Islamic (CIMB Investment Bank)
2011 – Present
Deputy Chief Executive Officer/ Senior Managing Director (since April 2014) – CIMB
Islamic (CIMB Investment Bank)
2009 – 2011
Deputy Chief Executive Officer – MIDF Amanah Investment Bank, Kuala Lumpur
Feb 2008 – Dec 2008
Director – Global Markets & Regional Head, Islamic Structuring (Asia) of Deutsche
Bank Dubai International Financial Centre (Dubai)
2003 – 2008
Director & Head – Debt Capital Markets, CIMB Islamic
2000 – 2003
Senior Analyst – Malaysian Rating Corporation Berhad
Master of Business Administration (Globalisation) from Maastricht School Of Management, The Netherlands;
Bachelor of Accounting (Honours) from International Islamic University Malaysia; Chartered Accountant (CA) with
the Malaysian Institute of Accountants (MIA).
Kim Teo Poh Jin *
Chairman of the Investment Committee. Director and Group Chief Executive Officer, Boardroom Limited. Director,
Livet Company Pte. Ltd. Director, Marina Yacht Services Pte. Ltd.
He has about 25 years of experience in the financial industry, having worked in senior positions of major financial
institutions.
Bachelor of Arts (Hons) in Economics from the Heriot-Watt University of Edinburgh.
Fad‟l bin Mohamed *
Managing Director of Maestro Capital Sdn. Bhd. Director of CIMB-Principal and CWA. Member of the Investment
Committee.
Has been a Director of CIMB-Principal since 22 May 2012. He has more than 20 years exposure in the areas of law
and finance. He started his career as a lawyer in Messrs. Rashid & Lee in 1991 to 1993.
He then joined the SC in 1993 to serve in the Take-Overs and Mergers Department and subsequently in the Product
Development Department. Between 1996 and 1999, he was attached to the Kuala Lumpur offices of a global
investment bank, providing cross-border merger and acquisition advice and other corporate advisory services to
Malaysian and foreign corporations. He is currently the founder and Managing Director of Maestro Capital Sdn. Bhd.,
a licensed corporate finance advisor providing corporate finance advisory services in the areas of mergers and
acquisition and capital raising.
He is a director of Scomi Engineering Berhad and holds directorships in various private companies. He is also an
independent investment committee member of CIMB Nasional Equity Fund and a holder of the Capital Markets
Services Representative‟s License for corporate finance advisory.
Bachelor of Laws (Hons), University of London; Certified Diploma in Accounting and Finance (Association of
Chartered Certified Accountants).
103
Name:
Designation:
Experience:
Qualifications:
Wong Fook Wah*
Retiree and ex-Deputy Group Chief Executive for RAM Holdings Berhad.
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 Deputy 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 Governmentowned 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.
Bachelor of Arts (Economics) from Universiti Malaya (1977) and a Masters degree in Policy Science from Saitama
University, Japan (1987).
* Independent member
104
THE BOARD OF DIRECTORS
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 at least once every
quarter.
Name:
Designation:
Experience:
Tengku Dato‟ Zafrul Bin Tengku Abdul Aziz
Name:
Designation:
Experience:
Luis Eduardo Valdés Illanes
President & CEO of Principal International.
Mr. Valdés is President & CEO, Principal International. He is responsible for managing businesses of the Principal Group
outside the United States in the company‟s international asset management and accumulation segment. Mr. Valdés
joined The Principal® in 1994. Previously he was managing director of BanRenta Compañía de Seguros de Vida, which
was purchased by Principal International to become Principal Vida Chile. Prior to BanRenta, he was an insurance market
consultant for The World Bank, Intendente de Seguros (Insurance Commissioner) in Chile. Valdés serves on the boards
of BrasilPrev Seguros & Previdencia (Brazil), Principal International (Chile) and Principal AFORE and Principal Life
(Mexico).
Chief Executive Officer of Investment Banking Division, CIMB Group
He joined CIMB Investment Bank Berhad on 2 January 2014, as the Chief Executive Officer (CEO). Previously, he was
the CEO of Maybank Investment Bank Berhad, CEO of Maybank Kim Eng Holdings, and Acting Head of Global Banking.
Prior to joining Maybank, he was the Group Director of Kenanga Holdings Berhad and Director of Kenanga Investment
Bank Berhad. He was also the CEO and substantial shareholder of Tune Money Sdn Bhd. Prior to that, he was the Head
of Investment Banking in Citigroup Malaysia, he also served as the Group Managing Director of Avenue Capital
Resources (ECM Libra) and as the CEO of Avenue Securities and Chairman of Avenue Asset Management. He started
as a corporate finance executive in AM Investment Bank and after that joined Credit Agricole as an investment analyst,
and became the Advisor to the President of Tenaga Nasional.
Qualifications: Bachelor of Science (Hons) in Economics & Accounting, University of Bristol, UK; Master Degree from University of
Exter, UK.
Qualifications: 1988 - MBA Degree
1982 - Degree of Industrial Engineering
1980 - Bachelor of Physics and Math Degree
Name:
Designation:
Experience:
Nor Azzam Abdul Jalil
Managing Director of CIMB Bank Berhad.
He has been the Regional Director for the Consumer Sales and Distribution Division of CIMB Bank Berhad since 2006,
managing the retail branches in Kuala Lumpur. He is also the chairman for the Disciplinary Committee of the Bank and
committee member of the Consumer Credit Committee, CSD Management Committee, and others in the bank.
Graduated in 1987 in Bachelor Business Administration (Finance) from George Washington University, Washington DC,
he joined Bank of Commerce Bhd later that year, and he has since been with the group in various positions and
departments including Treasury, Corporate Banking, Business Banking, Islamic Banking and in 2000 retail. He also
served as the General Manager of BCB Tokyo Branch in 2000 then became the CEO of Commerce Tijari Bank Berhad in
2005 before taking the current role of Regional Director / Managing Director of Central Region 1.
Qualifications: Bachelors Business Administration (Finance), George Washington University, Washington DC.
Dato‟ Anwar bin Aji *
Chairman of Zelan Berhad, Director of Terminal Bersepadu Gombak Sdn. Bhd., Director of Konsesi Pusat Asasi
Gambang Sdn Bhd, Director of SKS PARS Refining Company Sdn. Bhd., Director of Sistem Transit Aliran Ringan Sdn.
Bhd. and Independent Director of CIMB-Principal.
Experience:
Has been a Director of CIMB-Principal since 24 April 2007.
Re-designated w.e.f. 01.01.12
Chairman – Zelan Berhad
Re-designated w.e.f. 19.01.11
Executive Chairman – Zelan Berhad
Appointed w.e.f. 11.12.08
Chairman – Zelan Berhad
2001-2008
Chairman – Faber Group Berhad
1994-2004
Managing Director – Khazanah Nasional Berhad
1993-1994
Special Assistant – The Secretary General of Ministry of Finance
1991-1993
Principal Assistant Secretary – Finance Division, Federal Treasury, Ministry of Finance
1986-1991
Deputy Director – Petroleum Development Division, Prime Minister‟s Department
1984-1985
Principal Assistant Secretary – Investment Division of the Malaysian Tobacco
Company Berhad under the British Malaysia Industry and Trade Association training
scheme
Principal Assistant Secretary – Foreign Investment Committee, Economic Planning
1982-1984
Unit, Prime Minister Department
Principal Assistant Secretary – Economic and International Division, Federal Treasury,
1980-1981
Ministry of Finance.
1978-1980
Principal Assistant Secretary – Budget Division, Federal Treasury, Ministry of Finance
1973-1978
Assistant Director – Industries Division, Ministry of International Trade & Industry
Qualifications: Master of Arts, International Studies, Ohio University USA (1981 – 1982) and Bachelor of Economics (Hons.), University
of Malaya (1970 – 1973).
Name:
Designation:
105
Name:
Designation:
Experience:
Wong Joon Hian*
Managing Director of Advance Synergy Capital Sdn. Bhd.
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) and SFB Auto Berhad (independent non-executive director).
He is also a director in several other private limited companies.
Qualifications: Member of the Malaysian Institute of Certified Public Accountants and the Malaysian Institute of Accountants and a fellow
member of the Institute of Chartered Accountants in England and Wales.
Name:
Designation:
Ned Alan Burmeister (Alternate director to Luis Eduardo Valdes Illanes)
Senior Vice President, Principal Financial Group. Chief Operating Officer, Principal International, Inc. Director, CWA.
Director, CIMB-Principal. Director, Principal Financial Group (Mauritius) Limited. Director, Principal International (Asia)
Limited. Director, Principal International Holding Company, Limited Liability Company. Director, Principal International,
Inc. Director, Principal Retirement Advisors Private Limited. Director, Principal Trust Company (Asia) Limited. Director,
Principal Trustee Company Private Limited.
Experience:
Appointed as a Director of CIMB-Principal on 30 November 2007. Has been with Principal Financial Group, Sociedad
Anonima de Capital Variable for more than 28 years in the area of actuarial and pension services.
Qualifications: Bachelor‟s degree from Drake University, Des Moines, Iowa. Member of Society of Actuaries and the American Academy
of Actuaries.
A.Huzaime Bin Dato‟ Abdul Hamid *
Director of CIMB-Principal.
Has been a Director of CIMB-Principal since 2 May 2013.
Huzaime has spent 26 years in various aspects of finance, economics, and public policy advisory. 12 of those years was
spent as a fund manager, where he was, among others, a Chief Investment Officer with Alliance Capital Asset
Management and as a member of the Pacific Region Team and a Global Commodities Specialist with Hong Kong's
Jardine Fleming Investment Management which is now part of JP Morgan, Chase and Co. He was an independent
Investment Committee member for 6 years for CIMB Principal Asset Management, as well as being the same for CIMB
Principal Islamic Asset Management and CIMB Wealth Advisors for several years. He also served as an independent
Investment Committee member for CIMB Aviva Assurance and CIMB Aviva Takaful for two years.
Huzaime is the Chairman & CEO of Ingenium Advisors, a financial economics advisory established in 2013. He was, prior
to that, the Head of Strategic Operations at Malaysia's Employees Provident Fund, where he was deeply engaged in the
reform of the Malaysian pension and social security system, which resulted in the private pension system, minimum
wages, and minimum retirement age acts.
Huzaime also spent several years serving as a Senior Fellow at the then renowned Institute of Strategic and International
Studies (ISIS) Malaysia, reporting directly to its late Chairman, Tan Sri Noordin Sopiee. He was most active in economic,
finance, and geostrategic issues. He was engaged heavily in OIC and East Asian matters, and was appointed the Deputy
Secretary General for the Malaysian chapter of the Network of East Asian Think-tanks (NEAT).
Huzaime speaks and writes in 5 languages.
Qualifications: Master of Science, Financial Economics, School of Oriental and African Studies (SOAS), University of London, United
Kingdom, 2010; Bachelor of Science, Economics, Louisiana State University, Baton Rouge Louisiana, United States of
America, 1988.
Name:
Designation:
Experience:
Name:
Designation:
Experience:
Auyeung Rex Pak Kuen
Senior Vice President of Principal Financial Group; President – Asia of Principal Financial Group; Director of CIMBPrincipal.
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.
Qualifications: Bachelor of Environmental Studies (Honours) in Urban and Regional Planning, University of Waterloo, Canada.
Name:
Designation:
Badlisyah bin Abdul Ghani (Alternate Director to Raja Noorma binti Raja Othman)
Chief Executive Officer, Group Islamic Banking, CIMB Group and the Chief Executive Officer and Executive Director,
CIMB Islamic Bank Bhd. Director of CIMB-Principal.
Experience:
Joined CIMB in 2002 and was attached to the Corporate Finance Division, prior to his appointment as CEO 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 Holdings.
Qualifications: Bachelor of Laws Degree from the University of Leeds.
106
Name:
Pedro Esteban Borda
Designation:
Experience:
As aforementioned on page 102.
Qualifications:
Name:
Raja Noorma binti Raja Othman
Designation:
Experience:
As aforementioned on page 103.
Qualifications:
Name:
Fad‟l bin Mohamed *
Designation:
Experience:
As aforementioned on page 103.
Qualifications:
Name:
Munirah binti Khairuddin
Designation:
Experience:
As aforementioned on page 102.
Qualifications:
*
Independent director
AUDIT COMMITTEE
There are three (3) members sitting on the Audit Committee of CIMB-Principal. The Audit Committee monitors and ensures
transparency and accuracy of financial reporting, and effectiveness of external and internal audit functions of the Manager. The Audit
Committee meets at least twice a year.
Name:
Wong Joon Hian*
Designation:
Experience:
As aforementioned on page 106.
Qualifications:
Name:
Fad‟l bin Mohamed *
Designation:
Experience:
As aforementioned on page 103.
Qualifications:
Name:
Raja Noorma binti Raja Othman
Designation:
Experience:
As aforementioned on page 103.
Qualifications:
*Independent member.
107
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
Designation:
Experience:
As aforementioned on page 102.
Qualifications:
Name:
Dennis Lee Kwang Hua
Designation:
Director, Equities.
Experience:
Mr Dennis Lee joined CIMB-Principal in January 2007. He is currently the co-Head of Equities with joint oversight of
CIMB-Principal‟s portfolio management team. He has been managing ASEAN equity funds since 2008.
Prior to joining the fund management industry, he was with an international insurance firm performing actuarial tasks. He
subsequently moved on to be an investment analyst in one of the largest local securities firm for four and a half years.
He then joined one of the largest asset management companies, managing both unit trust and institutional funds for three
years. Prior to joining CIMB-Principal, he was the Head of Equity for Prudential Fund Management Berhad (currently
known as Eastspring Investments Berhad).
Qualifications: Master of Business Administration (Finance) from University of Leicester, UK and Bachelor‟s degree in Economics from
Macquarie University, Australia. He is a Chartered Financial Analyst Charterholder. He holds a Capital Markets Services
Representative‟s License for fund management under CMSA.
Name:
Wong Loke Chin
Designation:
Director, Fixed Income. Designated Fund Manager for all CIMB-Principal bond funds and money market funds.
Experience:
Has more than 18 years of experience in fixed income fund management. He joined CIMB-Principal in January 2005. He
was previously with CIMB Debt Markets and Derivatives department where he managed a range of fixed income
portfolios for institutional clients.
Qualifications: Bachelor‟s degree of Commerce in Accounting from the University of New South Wales, Australia. He holds a Capital
Markets Services Representative‟s License for fund management under CMSA.
Name:
Wu Yah Ning
Designation:
Director, Funds Management, Investment.
Experience:
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 more than 16 years of experience in the investment and financial
industry.
Qualifications: 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.
Name:
Ng Tsu Miin
Designation:
Senior Vice President, Fixed Income. Designated Fund Manager for all CIMB-Principal bond funds and money market
funds.
Experience:
She has 16 years of experience in fixed income fund management. She joined SBB Asset Management Berhad (“SBB”)
in 2005 prior to the merger of SBB with CIMB-Principal. Prior to joining SBB, she had been managing fixed income unit
trust and institutional discretionary mandates for more than 7 years.
Qualifications: Bachelor of Commerce (Honours) degree from New Zealand. She obtained her Fund Manager‟s representatives license
in 2000. She is a Chartered Financial Analyst (CFA) Charterholder since 2001.
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 proceeding which might materially affect business/financial position of CIMB-Principal or
any of its delegates.
108
THE SUB-MANAGERS
CIMB-PRINCIPAL ASSET MANAGEMENT (S) PTE. LTD.
The Manager has appointed CIMB-Principal (S) as the Sub-Manager for the investment foreign portion of CIMB Islamic DALI Equity
Fund, CIMB Islamic Equity Fund, CIMB Islamic Balanced Fund and CIMB Islamic Asia Pacific Equity 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 Sub-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 Sub-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 Sub-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 a regional 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) has seven (7) years of experience in the fund
management industry.
CIMB-Principal (S) is a licensed fund regulared by the Monetary Authority of Singapore. As at LPD, CIMB-Principal (S) has ten (10)
staff including seven (7) fund managers. The company is the fund manager for the CIMB FTSE ASEAN 40 ETF and several other
discretionary accounts and has total assets under management of about SGD 1.39 billion as at LPD.
Board of directors of CIMB-Principal (S):
Tang Chee Kin
Goh Zee Wei Ken
-
Director
Director & CEO
Key management staff of CIMB-Principal (S)
Ken Goh – Chief Executive Officer / Head, Regional Equities
Mr Goh is the designated person responsible for the investment management of the foreign investments of these Funds. He joined
CIMB-Principal (S) in January 2007 as CEO/Director.
Prior to joining CIMB-Principal (S), 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 1 st Class Honors. He is a
Chartered Financial Analyst (CFA) Charterholder since 1997.
Christopher Leow – Director, Regional Equities
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 more than 10 years of experience in fund management. He 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.
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, CIMB Islamic Balanced Fund and CIMB Islamic Greater China
Equity Fund:
Ken Goh – Chief Executive Officer / Head, Regional Equities
Mr Goh‟s profile is disclosed above.
Note: CIMB-Principal has obtained the necessary consent and confirmation from each of the relevant parties with regards to the
information disclosed in this section.
109
SCHRODER INVESTMENT MANAGEMENT (SINGAPORE) LTD.
SIMSL has been appointed as the Sub-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 Sub-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 Sub-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. The Singapore office was set up in 1977. Therefore it has been
managing investments for the past 36 years in Singapore.
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 March 2014, SIMSL has 236 staff including 8
fund managers and 9 investment analysts. SIMSL‟s total assets under management, as of 31 March 2014, are S$27.19 billion.
Directors of SIMSL:
Susan Soh Shin Yann
-
Managing Director
Tham Ee Mern Lilian
-
Director
Tan Jui Tong
-
Director
Chong Siok Chian
-
Director
Richard Anthony Mountford
-
Director
Rajeev Donald De Mello
-
Director
Key person responsible for investment management of the Fund
Giles Money – Global and International Equities, Global Sector Specialist
Giles Money is the designated fund manager responsible for the investment management of the CIMB Islamic Global Commodities
Equity Fund.
Giles joined Schroders in August 2010 and is currently a Global Sector Specialist covering the utilities and materials sectors. Giles
commenced his investment career in 2005 at F&C Asset Management plc, where he joined as a graduate and later became a fund
manager on the Global Equities desk. He held direct responsibility for the management of three global portfolios including a Global
Utilities portfolio and managed a Climate Opportunities fund. Throughout this time Giles specialised in clean energy, materials,
utilities, technology and financials. Giles is a CFA charterholder
Giles graduated with a bachelor degree in Commerce from the University of Birmingham.
Note: CIMB-Principal has obtained the necessary consent and confirmation from each of the relevant parties with regards to the
information disclosed in this section.
110
SHARIAH ADVISER OF THE FUNDS
CIMB ISLAMIC BANK BERHAD
CIMB Islamic is the global Islamic banking and finance franchise of 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 297 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 SAC of the regulatory bodies and CIMB Islamic's in-house
Shariah committee (“Shariah Committee").
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 prospectus, 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 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 42 funds. The Shariah Adviser meets every two months (six times a
year) 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.
In relation to Shariah matters, the designated person responsible for the Funds is Abdul Ghani Endut. In addition, CIMB Islamic 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 Dr. Nedham Yaqoobi
Dr. Yousef Abdullah Al Shubaily
Prof. Dr. Noor Inayah Yaakub
Sheikh Muhamad Taufik Ridlo
Name:
Prof. Dr. Mohammad Hashim Kamali
Designation:
Chairman & CEO, International Institute of Advanced Islamic Studies.
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 1 July 2012 to 31 July 2014. 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.
st
Qualifications: He holds a 1 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.
Experience:
Name:
Dr. Haji Mohd Nai‟m bin Haji Mokhtar
Designation:
Director, Family Support Division, Malaysian Shariah Judiciary Department, Prime Minister‟s Department, Malaysia.
Currently, serving as a 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 received his LLB degree from International Islamic University, Malaysia (IIUM), LLM from University of London, UK
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 University, Malaysia (IIUM).
Experience:
111
Name:
Assc Prof Dr. Shafaai bin Musa
Associate Professor, Ahmad Ibrahim Kuliyyah of Laws, International Islamic, University, Malaysia (“IIUM”). He is on
Designation:
secondment to Institut Intergriti, Kepimpinan Dan Latihan Semangat (IKLAS), Yayasan Warisan Johor as Chief Executive
Officer. He is also the Chairman of Sun Life Malaysia Takaful Berhad Shariah Committee (formerly known as CIMB
Aviva Takaful Berhad).
He has more than 10 years of experience in teaching Islamic law and jurisprudence and wrote several researches and
Experience:
articles. He served as Shariah adviser for Department of Islamic Development Malaysia in 2005.
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, UK.
Name:
Sheikh Dr. Nedham Yaqoobi
Designation:
Independent Shariah Advisor.
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 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 and PhD (Imam Nawawi Arba'een Hadith; New Critical Edition from a manuscript of his student Alaa aldin Attar)
from University of Wales.
Experience:
Name:
Dr. Yousef Abdullah Al Shubaily
Designation:
Lecturer, Comparative Jurisprudence Department, High Institute of Judiciary, Imam Muhammad bin Saud Islamic
University, Kingdom of Saudi Arabia.
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, USA and Britain. He also
holds advisory functions in numerous religious and charitable organisations within and outside the Kingdom.
He 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.
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.
Name:
Prof. Dr. Noor Inayah Yaakub
Designation:
Professor, Faculty of Economics and Management, Universiti Kebangsaan Malaysia (UKM) and Principal Fellow of
Institute of West Asian Studies, UKM.
Prof. Dr. Noor Inayah is a Malaysian, currently attached as a Professor, Faculty of Economics and Management,
Universiti Kebangsaan Malaysia (UKM) and Principal Fellow of Institute of West Asian Studies, UKM.
Experience:
She received her Bachelor of Shariah Law (Hons) and Bachelor of Law (Hons) from International Islamic University,
Malaysia, LLM (Master of Comparative Conventional & Banking Law) from University of Bristol, UK and Ph.D
(Comparative Conventional & Islamic Banking Law of Guarantee) from the University of Manchester, UK. She holds a
certificate of Product Management from ISIS Innovation Centre, University of Oxford, UK.
She was admitted to the Malaysian Bar as an Advocate & Solicitor of the High Court of Malaya in 1996 and in the same
year she obtained her Shariah Lawyer Certificate She practised law with Messrs. Abraham & Ooi and Co. from 19961997 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 Conventional & Banking Law) from University of Bristol, UK and Ph.D
(Comparative Conventional & Islamic Banking Law of Guarantee) from the University of Manchester, UK.
112
Name:
Sheikh Muhamad Taufik Ridlo
Designation:
Faculty lecturer, Department of Islamic Banking, SEBI School of Islamic Economics, Depok, West Jawa
Sheikh Muhamad Taufik Ridlo is an Indonesian Islamic scholar who is currently a Chairman of Yayasan Bina Tsaqofah
Legal Institution of SEBI (Shariah Economic Banking Institute) College. He is also a Senior Consultant in SEBI
Consulting as well as Senior Trainer at the Management Zakat Institute (IMZ), Indonesia. He is teaching Islamic
Jurisprudence, Islamic law of transaction, Islamic Banking Management, Introduction to Islamic economic and any
subject about Zakat and waqf.
Qualifications: He received his first degree of Islamic studies from University of Mu‟tah, Jordan in 1996 and obtained his postgraduate
of Islamic Banking from Arab Academy for Banking and Financial Sciences, Jordan in 1999.
Experience:
In the area of Islamic finance, he has been actively involved in its development domestically and international arena
besides participating as speakers for conferences and seminar.
Currently, he is a Pleno member at National Shariah Board (Dewan Syariah Nasional) (DSN-MUI), the Chairman of
Syariah Supervisory Board (DPS) at - P.T Asuransi Sinar Mas Syariah, a Member of Shariah Supervisory Board at CNAF
(CIMB NIAGA Auto Finance) Shariah and also the Chaiman of Shariah Supervisory Board at P T Permodalan BMT
Ventura.
Name:
Abdul Ghani Endut
Designation:
Director, Head of Shariah Department, Group, Islamic Banking Division, CIMB Group
Experience:
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 now leads the overall functions of Shariah Department which is responsible to provide the Shariah advisory for all
types of Islamic products both to the CIMB Group and external parties in asset & fund management, investment &
corporate banking, retail & commercial banking, treasury & structured products, takaful, private equity and etc.He is also
involved in developing curriculum for industry owned institutes dedicated for human capital development in the Islamic
finance industry such as Islamic Banking & Finance Institute Malaysia, Asian Institute of Finance and etc. He is currently
a member of Association of Islamic Banking Institutions Malaysia's Shariah Governance Committee and leads one of its
sub-committees. He is also a member of one of the sub-committees of ASAS.
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.
He is also a moderator for Finance Accreditation Agency (FAA)'s Learning Standards. FAA is an international and
independent quality assurance and accreditation body for the financial services industry supported by Bank Negara
Malaysia and Securities Commission, Malaysia.
Qualifications: He holds a Bachelor of Art (Hons) in Business Studies from the University of East London, UK and a Bachelor of Art
(Hons) in Islamic Jurisprudence and Legislation from the University of Jordan, Hashemite Kingdom of Jordan.
Note: CIMB-Principal has obtained the necessary consent and confirmation from each of the relevant parties with regards to the
information disclosed in this section.
113
THE TRUSTEES
AMANAHRAYA TRUSTEES BERHAD
ART is the trustee of the CIMB Islamic Al-Azzam Equity Fund, CIMB Islamic Equity Fund, CIMB Islamic Equity Aggressive
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 47 years in trustee business. ART has been registered and approved by the SC to act as trustee to unit
trust funds and has 179 unit trust funds under its trusteeship. As at LPD, ART has 85 staff (62 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)
AmanahRaya Development Sdn Bhd (546094-U)
Amanah Raya Capital Sdn. Bhd. (549057-K)
AmanahRaya Investment Bank Ltd (LL03749)
AmanahRaya Hartanah Sdn Bhd (760290-W)
20
20
20
20
20
ART’s financial performance
The following is a summary of the past three years performance of ART based on its audited financial statements for financial year
ended 31 December:
2013
(Unaudited)
(RM’000)
Paid-up capital
Shareholders‟ Funds
Turnover
Pre-tax profit
After tax profit / loss
Year Ended 31 December
2012
2011
(RM’000)
(RM’000)
1,000
7,140
28,307
21,196
15,877
1,000
5,263
26,908
20,246
14,549
1,000
9,584
27,980
20,536
15,485
Board of Directors and Chief Executive Officer of ART
Dato‟ Sri Idrus bin Harun
Tuan Haji Ab. Gani Bin Haron
Tuan Haji Zulkifly Bin Sulaiman
Tuan Haji Mansor Bin Salleh
Dato‟ Rahim Bin Abu Bakar
Dato‟ Haji Ismail Bin Ibrahim
Dato‟ Haji Che Pee Bin Samsudin
Hajjah Habsah binti Bakar
:
:
:
:
:
:
:
:
Chairman
Director
Director
Director
Director
Director
Director
Chief Executive Officer
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 10,000 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.
Note: CIMB-Principal has obtained the necessary consent and confirmation from each of the relevant parties with regards to the
information disclosed in this section.
114
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 RM6,031,203 with a pre-tax profit of
RM1,642,966 for the year ended 31 March 2013. 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 19 unit trusts funds (including 5 real
estate investment trust funds) under its trusteeship.
The shareholders and percentage of shareholding:
Shareholders
AmInvestment Bank Berhad
AmBank (M) Berhad
Arab-Malaysian Credit Berhad
AmSecurities Holding Sdn. Bhd.
Mekar Angkasa Sdn. Bhd.
Shareholding (%)
20
20
20
20
20
Board of Directors and Chief Executive Officer of AmTB:
Pushparani d/o A. Moothathamby
Dato‟ Ng Mann Cheong
Mr Wong Yew Sen
Tan Kok Cheeng
-
Chairman and Non-Independent Director
Independent Director
Independent Director
Chief Executive Officer
AmTB’s financial highlights are as follows:
Year Ended 31 March
2013
2012
2011
(RM)
(RM)
(RM)
500,000
500,000
500,000
Shareholders‟ Funds
6,031,203
5,438,455
8,144,017
Turnover
7,448,655
7,363,182
6,320,570
Pre-tax profit
1,642,966
2,110,210
1,786,353
After-tax profit
1,227,703
1,644,438
1,563,902
Paid-up capital
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. 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.
Note: CIMB-Principal has obtained the necessary consent and confirmation from each of the relevant parties with regards to the
information disclosed in this section.
115
DEUTSCHE TRUSTEES MALAYSIA BERHAD
DTMB is the trustee for 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 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 financial services throughout the world.
DTMB’s financial position
Year Ended 31 December
2012
2011
2010
(RM)
(RM)
(RM)
Paid-up share capital
3,050,000
3,050,000
3,050,000
Shareholders‟ Funds
4,654,993
4,038,569
2,366,581
Revenue
5,725,581
4,162,341
1,856,706
Profit / (loss) before tax
3,066,962
2,282,980
459,216
Profit / (loss) after tax
2,288,412
1,671,988
616,827
Board of Directors
Jacqueline William
Chang Wai Kah
Janet Choi
Jalalullail Othman
Lew Lup Seong
-
Director
Director
Director
Independent Director
Independent Director
Chief Executive Officer
Chua Mee Ling
Experience in trustee business
DTMB is part of Deutsche Bank‟s Trust & Securities Services, which provides trust, agency, depository, custody and related
services on a range of securities and financial structures. As at LPD, DTMB is the trustee for 165 collective investment schemes
including unit trust funds, wholesale funds, exchange-traded funds and private retirement schemes.
DTMB‟s trustee services are supported by Deutsche Bank (Malaysia) Berhad (“DBMB”), a subsidiary of Deutsche Bank, financially
and 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, the Capital Markets & Services Act 2007 and all relevant laws. In respect of monies paid by an investor
for the application of units, the Trustee‟s responsibility arises when the monies are received in the relevant account of the Trustee
for the Fund and in respect of redemption, the Trustee‟s responsibility is discharged once it has paid the redemption amount to the
Manager.
Trustee’s disclosure of material litigation
As at LPD, neither the Trustee nor its delegate is (a) engaged in any material litigation and arbitration, including those pending or
threatened, nor (b) aware of any facts likely to give rise to any proceedings which might materially affect the business/financial
position of the Trustee and any of its delegate.
DTMB’s delegate
The Trustee has appointed DBMB as the custodian of the assets of the Fund. DBMB is a wholly-owned subsidiary of Deutsche
Bank AG. 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 global bank. 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.
116
All investments are automatically registered in the name of, or to the order, of the Fund. DBMB shall act only in accordance with
instructions from the Trustee.
Disclosure on related-party transactions and conflict of interests
As the Trustee for the Fund, there may be related party transactions involving or in connection with the Fund in the following
events:
1.
Where the Fund invests in the products offered by Deutsche Bank AG and any of its group companies (e.g. money market
placement, etc.);
2.
Where the Fund has obtained financing from Deutsche Bank AG and any of its group companies, as permitted under the
Securities Commission Malaysia‟s guidelines and other applicable laws;
3.
Where the Manager appoints DBMB and/or DTMB to perform its back office functions (e.g. fund accounting and valuation
and/or registrar and transfer agent); and
4.
Where DTMB has delegated its custodian functions for the Fund to DBMB.
DTMB will rely on the Manager to ensure that 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.
Note: CIMB-Principal has obtained the necessary consent and confirmation from each of the relevant parties with regards to the
information disclosed in this section.
117
HSBC (MALAYSIA) TRUSTEE BERHAD
HSBCT is the trustee for CIMB Islamic Enhanced Sukuk Fund, CIMB Islamic Deposit Fund, CIMB Islamic Asia Pacific Equity
Fund and CIMB Islamic Greater China Equity 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 13th Floor, Bangunan HSBC, South Tower,
No 2, Leboh Ampang, 50100 Kuala Lumpur.
HSBCT’s financial information
The Trustee has a paid-up capital of RM500,000.00. As at 31 December 2013, its shareholders‟ funds totalled RM48.06 million and
it achieved a profit before tax of RM12.38 million.
The following is a summary of the past performance of the Trustee based on audited accounts for the last three (3) years:
Year Ended 31 December
2013 (RM)
2012 (RM)
2011 (RM)
500,000
500,000
500,000
Shareholders‟ Funds
48,058,506
38,785,020
30,214,518
Turnover
24,287,694
23,539,663
20,725,309
Profit before Tax
12,381,200
11,289,951
9,139,041
Profit after Tax
9,273,605
8,570,502
6,883,965
Paid-up capital
Board of Directors of HSBCT
Mr Baldev Singh A/L Gurdial Singh
Ms Lim Liang Hua
Dato‟ Ranita Mohd Hussein
Ms Zainon Baba
Ms On Bee Heong
-
Chairman of the Board (non-executive)
Managing Director (executive)
Independent Director (non-executive)
Independent Director (non-executive)
Director (executive)
Key Personnel
Mr Yee Yit Seeng – Chief Operating Officer/Acting Managing Director
He is responsible for the overall management of all operational functions and the business directions of HSBC Trustee. He joined
HSBC Trustee in July 1984. He holds a Diploma in Banking and Finance and is a Senior Associate of Institut Bank-Bank Malaysia.
He has more than 22 years of experience in trust operations including client service, systems/projects & office administration,
compliance, internal control & audit, and business development. He was also seconded to the HSBC Back-end Processing Office in
Cyberjaya, Malaysia to support the global securities operations.
The Managing Director assumes the roles and responsibilities of a Chief Executive Officer as required under the Prospectus
Guidelines for Collective Investment Schemes.
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 174
funds (including unit trust funds, exchange traded funds, wholesale funds and funds under private retirement scheme). As at LPD,
the Trustee has a workforce of 54 employees consisting of 45 executives and 9 non-executives.
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 registered in
the name of the Fund or to the order of the Fund. The custodian acts only in accordance with instructions from the Trustee.
The Trustee shall be responsible for the acts and omissions of its delegate as though they were its own acts and omissions.
However, the Trustee is not liable for the acts, omissions or failure of third party depository such as central securities depositories,
or clearing and/or settlement systems and/or authorised depository institutions, where the law or regulation of the relevant
jurisdiction requires the Trustee to deal or hold any asset of the Fund through such third parties.
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 SC Guidelines. 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 SC Guidelines. In
respect of monies paid by an investor for the application of units, the Trustee‟s responsibility arises 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.
118
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 wit h 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.
Consent to Disclosure
The Trustee shall be entitled to process, transfer, release and disclose from time to time any information relating to the
investors/unit holders; to the Trustee‟s parent company, subsidiaries, associate company, affiliates, delegates, service providers
and/or agents (including outsourcing agents and data processors), whether within or outside Malaysia, for any purpose (who may
also subsequently process, transfer, release and disclose such information for any purpose) on the basis that the recipients shall
continue to maintain the confidentiality of information disclosed; as required by law, regulation or directive, or in relation to any legal
action; or to any court, regulatory agency, government body or authority.
Note: CIMB-Principal has obtained the necessary consent and confirmation from each of the relevant parties with regards to the
information disclosed in this section.
119
MAYBANK TRUSTEES BERHAD
MTB is the Trustee of the CIMB Islamic Balanced Growth Fund with its registered address at 8th 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.
Summary of MTB’s Financial Position
The following is a summary of the past performance of MTB based on based on audited accounts and unaudited account
statements for the past 3 financial years:
Year Ended
Paid-up capital
31 December 2013
31 December 2012
31 December 2011*
(RM)
(RM)
(RM)
500,000
500,000
500,000
Shareholders‟ Funds
21,002,473
12,107,452
8,678,875
Turnover
21,316,197
14,047,931
6,506,087
Profit Before Taxation
11,826,263
4,571,241
3,242,278
Profit After Taxation
8,895,021
3,428,577
2,439,413
* Change of financial year to 31 December by Maybank Group with effect from 1st July 2011
Experience in Trustee Business
With more than 22 years of experience as Trustee to unit trust funds/schemes, Maybank Trustees Berhad has under its
trusteeship a total of sixty (60) unit trust funds, three (3) wholesale funds, one (1) private retirement scheme (consisting of
three (3) funds) and four (4) real estate investment trust/property trust funds as at 30 April 2014.
Board of Directors and Chief Executive Officer of MTB
En Zainal Abidin Jamal
Dato‟ Mohd. Hanif bin Suadi
Dato‟ Dr. Tan Tat Wai
Ms Ong Sau Yin
-
Non-Independent Non-Executive Director & Chairman
Non-Independent Non-Executive Director
Independent Non-Executive Director
Independent Non-Executive Director
Key Personnel
As at 30 April 2014, the Trustee has a total of 31 staff, comprising twenty five (25) executives and six (6) non-executives.
Officer in Charge
Mr Samuel Hwa
Head, Business Development & Strategies
Mr Samuel Hwa joined MTB in August 2013. He holds a Bachelor of Law degree from the University of London and a Bachelor of
Science in Business from Pennsylvania State University double majoring in Finance and Marketing/Management. He started his
career in America as a business analyst and later joined an insurance company in Malaysia. Prior to joining Maybank, he was w ith
CIMB Investment Bank Berhad. Samuel has worked in the Securities Services industry for over 5 years.
Ms Bernice K.M Lau
Head, Operations
Ms Bernice Lau was appointed as Head, Operations in November 2013. Prior to her appointment, she was the Head, Corporate
Trust of MTB. She joined MTB in December 2008. Prior to joining MTB, she was a Legal & Compliance Officer of UOB Trustees
Bhd which subsequently merged with OSK Trustees Berhad. She has more than eight (8) years of experience in trustee industry.
She holds a LL.B (Hons) from University of London and a Certificate in Legal Practice from Legal Profession Qualifying Board,
Malaysia.
Ms Lim San San
Head, Unit Trust
Ms Lim San San joined MTB in June 2011. She has more than 13 years of experience in financial services and unit trust industry.
She is a Fellow member of ACCA and a Chartered Accountant of MIA.
Trustee’s Statement of Responsibility
The Trustee has given its willingness to assume the position and all the obligations that come along with them under the Deed of
the Fund and all relevant written laws. The Trustee is entitled to be indemnified out of the assets of the Fund for any liability
incurred by the Trustee in performing or exercising any of its powers or duties in relation to the Fund. 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 Trustee having regard to its powers, authorities, and discretions under the Deed.
Duties and Responsibilities of the Trustee
The Trustee‟s role is mainly to act as custodian of the Fund and to exercise all due diligence and vigilance in carrying out its
functions and duties and to safeguard the rights and interests of the Unitholders. Apart from being the legal owner of the Fund‟s
120
assets, the Trustee is responsible for ensuring that the Manager performs its obligations in accordance with the provisions of the
Deed and the relevant laws.
MTB’s delegate
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. MCS provides clearing and custody services for Malaysian equity and fixed income
securities to domestic and foreign institutional clients. In addition, MSC offers global custody services to domestic institutions/clients
that have foreign investments.
The custodians act only in accordance with instructions from the Trustee.
Note: CIMB-Principal has obtained the necessary consent and confirmation from each of the relevant parties with regards to the
information disclosed in this section.
121
UNIVERSAL TRUSTEE (MALAYSIA) BERHAD
UTMB is the trustee of the CIMB Islamic DALI Equity Fund, CIMB Islamic Small Cap 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 Chief Executive Officer of UTMB
Tan Sri Dato‟ IR. Talha bin Haji Mohamad Hashim
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)
YM Tunku Mohamed Alauddin Tunku Naquiyuddin
Mr Liew Kok Wah (Chief Executive Officer cum Company Secretary)
UTMB’s financial highlights are as follows:
Year Ended 31 December
Paid-up capital
2013
2012
2011
(RM)
(RM)
(RM)
500,000
500,000
500,000
Shareholders‟ Funds
4,028,962
3,982,526
6,260,591
Turnover
3,175,275
3,096,471
3,208,708
Pre-tax profit
675,435
678,968
799,627
After-tax profit
421,436
534,436
616,278
Experience in the trustee business
UTMB has more than thirty years of experience in the unit trust industry. It has steadily continued to grow over the years and
currently employs 27 staff, which comprises 16 executives and 11 non-executives. As at LPD, it has 27 unit trust funds under its
trusteeship.
UTMB’s delegate
UTMB has appointed Citibank Berhad as their delegate for local custody services. Citibank Berhad in Malaysia was established on
26 August 1959 as the First National City Bank. It became the first American bank to be locally incorporated on 1 July 1994. It has
11 branches across West Malaysia and an offshore banking unit in Labuan. Citibank Berhad has been an active player in the
securities clearing and sub-custody industry in Malaysia since 1985. It is one of the largest institutional trades clearing bank in the
securities market. The custody operations unit is also ISO certified.
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.
Note: CIMB-Principal has obtained the necessary consent and confirmation from each of the relevant parties with regards to the
information disclosed in this section.
122
WHAT ARE THE ROLES, DUTIES AND 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 all the obligations in
accordance with the respective Deeds, all relevant laws and rules of law. The respective Trustees shall be entitled to be
indemnified out of the respective Funds against all losses, damages or expenses incurred by the Trustees in performing any of its
duties or exercising any of its powers under this Deed in relation to the Funds. 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
Trustees having regard to the provisions of 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 fa cts
likely to give rise to any proceedings which might materially and adversely affect their financial position or business.
As at LPD, save for the suits mentioned herein below, the MTB is not engaged in any material litigation as plaintiff or defendant and
the Trustee 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.
1. The bondholders of the Al-Bai Bithaman Ajil (“ABBA”) bonds (“bondholders”)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)-221810-2005 (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. The Trustee has defended the ABBA Suit and its trial has concluded.
The Trustee had 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. The appeals proceeded on 22, 23, 26, 27, 28, 29 and 30 September 2011 and 3
October 2011. The Court of Appeal had on 8 November 2011 awarded the Trustee and another Defendant a limited indemnity
against PASB, PASB‟s Chief Executive Officer, one of PASB‟s directors and associate companies of the Chief Executive Officer
and the said director (collectively “PASB And Their Associated Defendants”) but found the Trustee and the other Defendant equally
liable to the bondholders. The Federal Court had on 5 April 2012 granted the Trustee leave to appeal to the Federal Court against
certain parts of the decision of the Court of Appeal (“Federal Court Appeal”). The Federal Court Appeal was heard on 6, 7, 8, 20, 21
and 23 November 2012 and on 2, 3 and 4 January 2013. The hearing dates of 17 to 19 October 2012 and 19 November 2012 were
vacated.
The Federal Court had on 10 February 2014 delivered its decision (“Decision”) wherein it had, among others, allowed the Trustee a
full indemnity against PASB And Their Associated Defendants and reduced the judgement sum against the Trustee to
approximately RM107 million without apportionment of liability against the other Defendant.
PASB‟s Chief Executive Officer and associate companies of the Chief Executive Officer have filed an application for the Federal
Court to review its decision against them (“Review Application”). A hearing date will be fixed for the Review Application.
2. Connected to the ABBA Suit, Amanah Short Deposits Berhad [now MIDF Amanah Investment Bank Berhad (“MIDF”)], a
Noteholder of the Combined Commercial Papers and/or Medium Term Notes/Letters of Credit/Financial Guarantee Facilities
123
(“CP/MTN”) totalling RM13 million and issued by PASB, has also sued PASB for full payment under the 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 will be fixed by the High
Court.
The Trustee has obtained leave of the court to proceed with the actions against PASB given that further to an unrelated suit a
provisional liquidator had been appointed against PASB. The Trustee has also obtained leave of the court to proceed with the
actions against PASB following the court's order to wind-up PASB further to the unrelated suit.
In any event, any successful claim that may be established against the Trustee will be covered by the Trustee‟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.
3. Several holders of the bonds (“bondholders”) issued by Aldwich Berhad [In Receivership] (“Aldwich”) have sued Aldwich for its
failure to settle its indebtedness to the bondholders following the default of the said bonds in 2010 and cited the Trustee as one of 6
co-defendants under Kuala Lumpur High Court Suit No. D-22NCC-1622-11/2012 (the “Aldwich Bondholders‟ Suit”). The claim
against the Trustee is for the sum of RM177,248,747.31 or any other sum that the Court deems fit. The other defendants are the
holding company of Aldwich, the Chief Executive Officer of the holding company of Aldwich, the Security Agent and the Reporting
Accountant. The Trustee does not admit liability to the Aldwich Bondholders‟ Suit and shall defend it. The Aldwich Bondholders‟
Suit will not materially affect the business or financial position of the Trustee. Trial is adjourned to 21 July 2014.
AmTrustee Berhad [“AmTrustee”] was served with a Writ and Statement of Claim dated 12th December 2005 by solicitors acting
for Meridian Asset Management Sdn Bhd [“Meridian”] for alleged loss and damage amounting to RM27,606,169.65 together with
interest and costs arising from the provision of custodian services by AmTrustee to Meridian [“Meridian Suit”].
AmTrustee was served on 24th March 2006 with a Writ and Statement of Claim dated 25th January 2006 by solicitors acting for
Malaysian Assurance Alliance Berhad [“MAA”] for alleged loss and damages amounting to RM19,602,119.23 together with interest
and costs ["MAA Suit"]. MAA had appointed Meridian as an external fund manager for certain of its insurance funds, and part of the
insurance funds were deposited by Meridian with AmTrustee. The claim by MAA in the MAA Suit is part of the portion of the claim
as mentioned in the above Meridian Suit.
In the MAA Suit, AmTrustee filed a Third Party Notice against Meridian on 6th November 2006 seeking indemnification/contribution
from Meridian. Meridian in turn filed a counter claim against AmTrustee over AmTrustee‟s Third Party Notice which in essence
introduced the same argument and claim as in their Meridian Suit.
Parties filed several interim applications in the Meridian Suit amongst which was an application by Meridian to:add another subsidiary of the Banking Group, namely AmInvestment Bank Berhad as Co- Defendant and
to increase the alleged loss and damage from RM27,606,169.65 to RM36,967,166.84.
The High Court dismissed Meridian‟s application to add AmInvestment Bank Berhad as a party to the Meridian‟s Suit (“Decision”)
but allowed Meridian‟s application to increase its claim against AmTrustee from RM27,606,169.65 to RM36,967,166.84. No appeal
was filed by Meridian against this Decision, hence no litigation is pending today against AmInvestment Bank Berhad by Meridian.
As facts of both the Meridian and MAA suit are similar in nature with the same parties involved, the court has ordered that these
two suits are to be heard together.
Trial proceeded on 3rd to 5th of December 2012 and on 10th and 13th December 2012 and continued on 18th to 20th February
2013. Matter is fixed for decision and or clarification on 11th April 2013
After clarification of the matter on 11 April 2013 the court decided as follows (“Decision”):
In the MAA Suit:
the court dismissed MAA‟s claim against AmTrustee with costs of RM100,000.00 and interest at 5% on the cost from the date
of the decision to the date of settlement. Meridian on the other hand was found to be fully liable to MAA and was ordered to
pay the sum of RM19,602,119.23 with interest from the date of filing of the writ to the date of realization and costs of
RM100,000.00 with interest at 5% on the cost from the date of the decision to the date of settlement.
In the Meridian Suit:
the court found that AmTrustee is liable to contribute and indemnify Meridian for 40% of the amount that Meridian has been
found liable to MAA and KWAP.
This essentially means that Meridian has to pay MAA and KWAP for all the damages claimed by MAA and KWAP and AmTrustee
has to pay 40% of that amount that Meridian has paid to MAA and KWAP. Court further awarded Meridian to pay AmTrustee cost
of RM20,000.00.
Both Meridian and MAA filed their appeals against the Decision on 8th May 2013 and 9th May 2013 respectively. The appeals were
called up for Case Management on 20th June 2013, wherein parties were directed to take steps prior to the actual hearing of the
appeals and was refixed for further Case Management on 6th August 2013.
AmTrustee‟s solicitors advised AmTrustee to file its cross appeals against MAA‟s appeal and Meridian‟s appeal so as to reduce
AmTrustee‟s 40% contribution of any amount that Meridian has paid to MAA and KWAP. AmTrustee‟s solicitors are of the view that
AmTrustee has a good chance of succeeding in its cross-appeals.
On 6th August 2013, the Court of Appeal ordered MAA and Meridian to file their Supplementary Record of Appeal by 23rd August
2013 and AmTrustee to file its notice of cross-appeals by 2nd September 2013.
124
On 23rd August 2013, MAA and Meridian filed their Supplementary Record of Appeal on 23rd August 2013 and AmTrustee filed its
notice of cross-appeals on 30th August 2013.
Altogether, there will be 6 appeals by the parties in the Court of Appeal as follows:
MAA Suit:
(i) MAA‟s appeal against the Decision in the MAA Suit;
(ii) Meridian‟s appeal against the Decision in the MAA Suit;
(iii) AmTrustee‟s cross-appeal against MAA‟s appeal in the MAA Suit;
(iv) AmTrustee‟s cross-appeal against Meridian‟s appeal in the MAA Suit;
Meridian’s Suit:
(v) Meridian‟s appeal against the Decision in the Meridian Suit;
(vi) AmTrustee‟s appeal against Meridian‟s appeal in the Meridian Suit
The Court of Appeal fixed the appeals for further case management on 5th September 2013 for parties to update Court of Appeal
on the status of their appeals. On 5th September 2013 the Court of Appeal fixed 29th January 2014 for the parties to file Written
Submissions. The Court of Appeal also fixed the hearing on the appeals and cross appeals on 14th February 2014.
On 22nd November 2013, the Court of Appeal notified that hearing for the appeals was re-scheduled to 21st April 2014.
On 13th January 2014, the Court of Appeal informed that:
i.
ii.
iii.
the originally fixed appeal hearing date of 21st April 2014 was vacated;
all parties filed the written submission for the appeals on 5th May 2014; and
the appeals by MAA, Meridian and AmTrustee in the MAA Suit and Meridian Suit, together with
KWAP -V- Meridian case, will now be heard on 19th May 2014.
Meridian‟s appeal in the
Note: CIMB-Principal has obtained the necessary consent and confirmation from each of the relevant parties with regards to the
information disclosed in this section.
125
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.
126
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
Withdrawal Fee
Switching Fee
% / RM
% / RM
% / RM
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.
Equity Funds
CIMB Islamic DALI Equity
Growth Fund
Up to 10% is charged
on the Net Asset
Value per unit.
CIMB Islamic DALI Equity Fund
Up to 10% is charged
on the Net Asset
Value per unit.
Up to 5% of the Net
Asset Value per unit.
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.
CIMB Islamic DALI Equity
Theme Fund
Up to 7% is charged
on the Net Asset
Value per unit.
Up to 5% of 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.
CIMB Islamic Al-Azzam Equity
Fund
Up to 7% is charged
on the Net Asset
Value per unit.
Up to 5% of 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.
CIMB Islamic Equity Fund
Up to 10% is charged
on the Net Asset
Value per unit.
Up to 5% of the Net
Asset Value per unit.
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.
CIMB Islamic Equity Aggressive
Fund
Up to 6% 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.
CIMB Islamic Small Cap Fund
Up to 10% is charged
on the Net Asset
Value per unit.
Up to 5% of the Net
Asset Value per unit.
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.
CIMB Islamic Balanced Fund
Up to 10% is charged
on the Net Asset
Value per unit.
Up to 5% of the Net
Asset Value per unit.
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.
CIMB Islamic Balanced Growth
Fund
Up to 6% 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.
Mixed Assets Funds
Sukuk & Money Market Funds
(a)
CIMB Islamic Enhanced Sukuk
Fund
Up to 2% is charged
on the Net Asset
Value per unit.
Nil
(b)
(c)
127
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;
If a switch is made from a Sukuk 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;
such other sum as may be determined by the
Management Company from time to time.
Charges
Application Fee
Withdrawal Fee
Switching Fee
% / RM
% / RM
% / RM
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.
CIMB Islamic Sukuk Fund
Up to 10% is charged
on the Net Asset
Value per unit.
Up to 5% of the Net
Asset Value per unit.
CIMB Islamic Money Market
Fund
Up to 7% is charged
on the Net Asset
Value per unit.
Up to 5% of 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.
CIMB Islamic Deposit Fund
Up to 7% is charged
on the Net Asset
Value per unit.
Up to 5% of 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.
Regional & Global Funds
CIMB Islamic Asia Pacific
Equity Fund
Up to 5% 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.
CIMB Islamic Greater China
Equity Fund
Up to 7% is charged
on the Net Asset
Value per unit.
Up to 5% of 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.
CIMB Islamic Global
Commodities Equity Fund
Up to 7% is charged
on the Net Asset
Value per unit.
Up to 5% of 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.
128
This table describes the maximum fees permitted by the Deeds and payable indirectly by investors.
Fees
Management Fee
Trustee Fee
% / RM
% / RM
CIMB Islamic DALI Equity Growth Fund
Up to 2.25% per annum, calculated
daily on the Net Asset Value.
0.06% per annum, calculated daily on the
Net Asset Value.
CIMB Islamic DALI Equity Fund
Up to 3.00% per annum, calculated
daily on the Net Asset Value.
0.06% per annum, calculated daily on the
Net Asset Value.
Up to 3.00% per annum, calculated
daily on the Net Asset Value.
0.07% per annum, calculated daily on the
Net Asset Value (excluding foreign subcustodian fees and charges).
Equity Funds
CIMB Islamic DALI Equity Theme Fund
CIMB Islamic Al-Azzam Equity Fund
Up to 3.00% per annum, calculated
daily on the Net Asset Value.
Up to 0.05% per annum (including local
custodian fees and charges), calculated
daily on the Net Asset Value.
CIMB Islamic Equity Fund
Up to 3.00% per annum, calculated
daily on the Net Asset Value.
0.06% per annum, calculated daily on the
Net Asset Value.
CIMB Islamic Equity Aggressive Fund
Up to 1.50% per annum, calculated
daily on the Net Asset Value.
0.09% per annum, calculated daily on the
Net Asset Value.
CIMB Islamic Small Cap Fund
Up to 3.00% per annum, calculated
daily on the Net Asset Value.
0.06% per annum, calculated daily on the
Net Asset Value.
CIMB Islamic Balanced Fund
Up to 1.50% per annum, calculated
daily on the Net Asset Value.
0.10% per annum, calculated daily on the
Net Asset Value.
CIMB Islamic Balanced Growth Fund
Up to 2.00% per annum, calculated
daily on the Net Asset Value.
0.07% per annum, calculated daily on the
Net Asset Value (excluding foreign subcustodian fees and charges).
CIMB Islamic Enhanced Sukuk Fund
Up to 1.50% per annum, calculated
daily on the Net Asset Value.
0.07% per annum, calculated daily on the
Net Asset Value (excluding foreign subcustodian fees and charges).
CIMB Islamic Sukuk Fund
Up to 3.00% per annum, calculated
daily on the Net Asset Value.
0.06% per annum, calculated daily on the
Net Asset Value.
CIMB Islamic Money Market Fund
Up to 3.00% per annum, calculated
daily on the Net Asset Value.
Up to 0.03% per annum, calculated daily on
the Net Asset Value (excluding foreign subcustodian fees and charges).
CIMB Islamic Deposit Fund
Up to 3.00% per annum, calculated
daily on the Net Asset Value.
0.04% per annum, calculated daily on the
Net Asset Value (excluding foreign subcustodian fees and charges).
CIMB Islamic Asia Pacific Equity Fund
Up to 1.85% per annum, calculated
daily on the Net Asset Value.
0.07% per annum, calculated daily on the
Net Asset Value (excluding foreign subcustodian fees and charges).
CIMB Islamic Greater China Equity Fund
Up to 3.00% per annum, calculated
daily on the Net Asset Value.
0.08% per annum, calculated daily on the
Net Asset Value (excluding foreign subcustodian fee and charges).
Up to 3.00% per annum, calculated
daily on the Net Asset Value.
Up to 0.07% per annum, calculated daily on
the Net Asset Value, but subject to a
minimum fee of RM12,000 per annum
(excluding foreign sub-custodian fees and
charges).
Mixed Asset Funds
Sukuk & Money Market Funds
Regional & Global Funds
CIMB Islamic Global Commodities Equity Fund
Any increase of the fees and/or charges above that stated in the current Master Prospectus (Shariah-compliant Funds) 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.
Note: The information disclosed in the Salient Terms of Deed section was extracted from the respective Deeds to the Funds. 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 this
Master Prospectus. Please refer to the Fees, Charges and Expenses section for more information.
129
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 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;

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);

costs of obtaining experts opinion by the Trustees and the Manager for the benefit of the Funds; and

all costs and/or expenses associated with the distributions declared pursuant to this Deed and the payment of such distribution
including without limitation fees, costs and/or expenses for the revalidation or reissuance of any distribution cheque or warrant
or telegraphic transfer.
The Manager and the Trustees are required to ensure that any fees or charges payable are reasonable and in accordance with the
Deeds.
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

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
130
The Manager may be replaced by another corporation appointed as manager by a Special Resolution of the Unit holders at a Unit
holder‟s meeting convened in accordance with the Deeds either by the Trustees or the Unit holders.
POWER OF THE MANAGER TO REMOVE AND/OR 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.
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;

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

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 Uni t
holders‟ meeting convened in accordance with the Deeds either by the Manager or the Unit holders.
POWER OF THE TRUSTEES TO REMOVE AND/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.
131
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
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 h ave
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.
132
APPROVALS AND CONDITIONS
VARIATIONS AND/OR EXEMPTIONS TO THE SC GUIDELINES
We have obtained variations and /or exemptions 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-Principal has obtained approval from the SC for a variation of Clause 10.17(a) of the SC Guidelines which allow CIMBPrincipal to pay Unit holder(s) within fifteen (15) days of the receipt of the redemption notice, when the Fund‟s total redemption
amount is 15% or more of the total NAV of the Fund.
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 CIMBPrincipal 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.
CIMB Islamic Small Cap Fund
CIMB-Principal has obtained approval from the SC for a variation of Clause 10.17(a) of the SC Guidelines which allow CIMBPrincipal to pay Unit holder(s) within fifteen (15) days of the receipt of the redemption notice, when the Fund‟s total redem ption
amount is 15% or more of the total NAV of the Fund.
CIMB Islamic Asia Pacific Equity Fund, CIMB Islamic DALI Equity Fund, CIMB Islamic Balanced Fund, CIMB Islamic
Enhanced Sukuk Fund, CIMB Islamic Sukuk Fund and CIMB Islamic Money Market Fund
CIMB-Principal has obtained approval from the SC for an exemption to comply with Schedule B: Valuation of other unlisted bonds
of the SC Guidelines which allow CIMB-Principal to obtain the price of any unlisted non RM-denominated Sukuk from the
Interactive Data Corporation for valuation purpose subject to these conditions:
1.
2.
the Manager is to keep abreast of the development of IDC‟s pricing methodology; and
the Manager is to continuously keep track on the acceptability of IDC‟s prices in the market place.
133
RELATED-PARTY TRANSACTIONS AND
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 Trust ees. Any
investment committee member or director of CIMB-Principal who hold substantial shareholdings or directorships in public
companies shall refrain from any decision making relating to that particular security of the Funds.
The Funds may maintain Shariah-compliant deposits with CIMB Islamic Bank Berhad and CIMB Investment Bank Berhad. CIMBPrincipal may enter into transactions with other companies within the CIMB Group and the PFG 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 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 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.
134
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
14 May 2014
Dear Sirs,
TAXATION OF THE TRUSTS OFFERED UNDER THE MASTER PROSPECTUS (SHARIAH-COMPLIANT FUNDS) AND UNIT
HOLDERS
This letter has been prepared for inclusion in the Master Prospectus (Shariah-Compliant Funds) dated 30 June 2014 (“hereinafter
referred to as “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 unit holders 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) Domestic Investments
(i) General taxation
The income of the Trusts consisting of dividends, interest or profit (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.
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.
135
(ii) Dividends and Other Exempt Income
Effective 1 January 2014, all companies would adopt the single-tier system. Hence dividends received would be exempted from tax
and the deductibility of expenses incurred against such dividend income would be disregarded. There will no longer be any tax
refunds available for single-tier dividends received. Dividends received from companies under the single-tier system would be
exempted.
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.
Interest income or profit1 or discount income derived from the following investments are exempt from tax:
a)
b)
c)
Securities or bonds issued or guaranteed by the Government of Malaysia;
Debentures or islamic securities, other than convertible loan stocks, approved by the Securities Commission (“SC”); and
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)
b)
Interest or profit1 paid or credited by any bank or financial institution licensed under the Financial Services Act 2013 and
Islamic Financial Services Act 2013 with effect from 30 June 2013; and
Bonds, other than convertible loan stocks, paid or credited by any company listed in Bursa Malaysia Securities Berhad ACE
Market.
The interest income / profit1 or discount exempted from tax at the Trusts‟ level will also be exempted from tax upon distribution to
the unit holders.
(2) 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 unit holders.
Such income from foreign
investments may be subject to taxes or withholding taxes in the specific foreign country. However, any foreign tax suffered o n 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 unit
holders.
(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 upo n
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.
136
(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”)
The following is a summary of tax treatment of SBL transactions in Malaysia and the Malaysian securities listed on Bursa Malaysia
Berhad (“Bursa”).
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. The same exemption also applies on the return of the same or
equivalent securities and the corresponding exchange of collateral.
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 percent 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.
(6) 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 unit holders, 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.
(7)
Real Property Gains Tax (“RPGT”)
With effect from 1 January 2014, any gains on disposal of real properties (“chargeable asset”) or shares in real property
companies3 (“chargeable asset”) would be subject to RPGT as follows:Disposal time frame
RPGT rates
Within 3 years
In the 4th year
In the 5th year
In the 6th year and subsequent years
2
30%
20%
15%
5%
Pursuant to Finance Act 2012, the reduced withholding tax rate of 10% has been extended from 1 January 2012 to 31
December 2016.
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.
137
(8) Goods and Services Tax (“GST”)
It was announced in the Malaysian Budget 2014 that GST will be implemented on 1 April 2015 at the rate of 6% to replace the
existing sales tax and service tax. Based on the draft guideline 4 issued, the Trusts, being collective investment vehicles, will be
making exempt supplies. Hence, they are not required to be registered. However, the Trusts will incur expenses such as
management fees, trustee fees and other administrative charges which will be subject to 6% GST. The 6% input tax incurred on
such expenses will not be claimable by the Trusts.
TAXATION OF UNIT HOLDERS
Unit holders 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. Unit holders 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 unit holders 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 r elevant
foreign tax.
Corporate unit holders, resident5 and non-resident, will generally be liable to income tax at 25 6 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
unit holders.
Individuals and other non-corporate unit holders who are tax resident in Malaysia will be subject to income tax at graduated rates
ranging from 1 per cent to 267 per cent. Individuals and other non-corporate unit holders who are not resident in Malaysia will be
subject to income tax at 268 per cent. The tax credits attributable to the distribution of income can be utilised against the tax
liabilities of these unit holders.
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 unit holders.
4
Pursuant to Goods And Services Tax Guide on Fund Management (draft as at 27 October 2013) issued by the Royal
Malaysian Customs
5
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.
6
It was recently announced during the 2014 Budget that the Malaysian corporate income tax rate will be reduced to 24 per cent
effective YA 2016.
7
It was recently announced during the 2014 Budget that the income tax rates for individual tax residents in Malaysia will be
reduced to rates ranging from 1 to 25 per cent effective YA 2015.
8
It was recently announced during the 2014 Budget that the income tax rate for non-resident individuals in Malaysia will be
reduced to 25 per cent effective YA 2015.
138
Any gains realised by unit holders (other than dealers in securities, insurance companies or financial institutions) on the s ale 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.
Unit holders 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 unit holders.
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
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 tax adviser
in the form and context in which it appears in the Master Prospectus and have not, before the date of issue of the Master
Prospectus, withdrawn such consent.
APPENDIX
The Trusts consist of the following 16 funds:-
1.
CIMB Islamic DALI Equity Growth Fund
2.
CIMB Islamic DALI Equity Fund
3.
CIMB Islamic DALI Equity Theme Fund
4.
CIMB Islamic Al-Azzam Equity Fund
5.
CIMB Islamic Equity Fund
6.
CIMB Islamic Equity Aggressive Fund
7.
CIMB Islamic Small Cap Fund
8.
CIMB Islamic Balanced Fund
9.
CIMB Islamic Balanced Growth Fund
10.
CIMB Islamic Enhanced Sukuk Fund
11.
CIMB Islamic Sukuk Fund
12.
CIMB Islamic Money Market Fund
13.
CIMB Islamic Deposit Fund
14.
CIMB Islamic Asia Pacific Equity Fund
15.
CIMB Islamic Greater China Equity Fund
16.
CIMB Islamic Global Commodities Equity Fund
139
ADDITIONAL INFORMATION
INVESTORS SERVICES
Note: These services are only available to investors of selected 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 quarterly; 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 and our website, http://www.cimbprincipal.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 service@cimbprincipal.com.my.
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
Who should I contact for further information or to lodge a complaint?
(i)
You may 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 e-mail us at service@cimbprincipal.com.my.
(ii) Alternatively, you may also contact:
(a) Securities Industries Dispute Resolution Corporation (SIDREC):




via phone to
via fax to
via e-mail to
via letter to
: 03-2282 2280
: 03-2282 3855
: info@sidrec.com.my
: Securities Industry Dispute Resolution Center (SIDREC)
Unit A-9-1, Level 9, Tower A
Menara UOA Bangsar
No.5, Jalan Bangsar Utama 1
59000 Kuala Lumpur
(b) SC‟s Investor Affairs & Complaints Department:





via phone to Aduan Hotline at : 03-6204 8999
via fax to
: 03-6204 8991
via e-mail to
: aduan@seccom.com.my
via online complaint form available at www.sc.com.my
via letter to
: Investor Affairs & Complaints Department
Securities Commission Malaysia
No 3 Persiaran Bukit Kiara
Bukit Kiara
50490 Kuala Lumpur
140
(c) FIMM‟s Complaints Bureau:





via phone to
: 03-2092 3800
via fax to
: 03-2093 2700
via e-mail to
: legalcomp@fimm.com.my
via online complaint form available at www.fimm.com.my
via letter to
: Legal, Secretarial & Regulatory Affairs
Federation of Investment Managers Malaysia
19-06-1, 6th Floor PNB Damansara,
No. 19, Lorong Dungun Damansara Heights
50490 Kuala Lumpur
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 ret urn 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 w ith 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.
DISTRIBUTION CHANNELS WHERE UNITS CAN BE PURCHASED OR REDEEMED
The Funds are distributed via the following channels:

CWA; and

IUTAs.
The addresses and contact numbers of the head office and regional offices of CIMB-Principal are disclosed in the Corporate
Directory. The Distributors of the Fund are listed in the “Distributors of the Funds” chapter.
141
CONSENT
PricewaterhouseCoopers Taxation Services Sdn. Bhd., Deutsche Trustees Malaysia Berhad, Maybank 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. They have also given their consent
for the inclusion of their names and/or statements and/or reports in the Master Prospectus (Shariah-compliant Funds) in the form
and context in which it appears and have not subsequently withdrawn their consent to the inclusion of their names and/or
statements and/or reports in the form and context in which it appears in this Master Prospectus (Shariah-compliant Funds).
142
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 at the
business address of 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 (Shariahcompliant Funds); and

Any consent given by experts or persons whose statement appears in this Master Prospectus (Shariah-compliant Funds).
143
DISTRIBUTORS OF THE FUNDS
The CIMB-Principal Shariah-compliant Funds are available (but not limited to) from the following distributors and their branches:
CIMB-Principal Asset Management Berhad (304078-K)
CWA
50, 52 & 54 Jalan SS21/39
Damansara Utama
47400 Petaling Jaya
Selangor Darul Ehsan MALAYSIA
(03) 7718 3000
CIMB Bank Berhad (13491-P)
Menara Bumiputra-Commerce
11, Jalan Raja Laut
50350 Kuala Lumpur MALAYSIA
1 300 880 900
(Distributor for DALI, DALI2, DALI3, Azzam, IEF, IEAF, ISCF, IBF,
IBGF, IESF, ISF, IMMF, IDF, IAPEF, IGCEF and ICEF)
(Distributor for all Funds)
CIMB Investment Bank Berhad – Retail Equities (163712-V)
(A Participating Organisation of Bursa Malaysia Securities
Berhad)
17th Floor, Menara CIMB
Jalan Stesen Sentral 2
Kuala Lumpur Sentral,
50470 Kuala Lumpur MALAYSIA
03-22618888
CIMB Private Banking (18417-M)
17th Floor, Menara CIMB
Jalan Stesen Sentral 2
Kuala Lumpur Sentral,
50470 Kuala Lumpur
Malaysia
03-22618888
(Distributor Azzam, IEAF, IBGF, IESF, IMMF, IDF, IAPEF and
ICEF)
(Distributor for DALI, DALI2, Azzam, IEF, IEAF, ISCF, IBF, IBGF,
IESF, ISF, IMMF, IDF, IAPEF and ICEF)
CIMB Islamic Bank Berhad (671380-H)
Menara Bumiputra-Commerce
11, Jalan Raja Laut
50350 Kuala Lumpur MALAYSIA
Tel : 1300 880 900
Affin Bank Berhad (25046-T)
Menara Affin
80, Jalan Raja Chulan
50200 Kuala Lumpur MALAYSIA
(03) 2055 9733 / 2055 9936
Distributor for DALI, DALI2, DALI3, Azzam, IEF, IEAF, ISCF, IBF,
IBGF, IESF, ISF, IMMF, IDF, IAPEF, IGCEF and ICEF)
(Distributor for DALI, DALI2, IEAF, ISCF, IBF, IBGF, IESF and
IAPEF)
AmInvestment Bank Berhad (23742-V)
18th Floor, Bangunan AmBank Group
55, Jalan Raja Chulan
50200 Kuala Lumpur
(03) 2036 1300
Bank Kerjasama Rakyat Malaysia Berhad (2192)
Tingkat 15, Bangunan PERKIM
150, Jalan Ipoh
51200 Kuala Lumpur MALAYSIA
(03) 4027 2500
(Distributor for DALI, DALI2, IEF, IEAF, ISCF, IBF, IBGF and ISF)
(Distributor for DALI, IEF, IBF, IMMF and IAPEF)
Citibank Berhad (297089-M)
Head Office
Citibank Investment Services
Menara Citibank
165, Jalan Ampang,
50450 Kuala Lumpur MALAYSIA
(03) 2383 8833
Hong Leong Bank Berhad (97141-X)
Level 3, Wisma Hong Leong
18, Jalan Tun Perak
50450 Kuala Lumpur
(03) 2164 2828
(Distributor for DALI2, IEAF, ISCF, IBF, IBGF, IESF, and IAPEF)
(Distributor for IBGF and IAPEF)
IFAST Capital Sdn Bhd (782978-H)
Level 28, Menara Standard Chartered
No 30, Jalan Sultan Ismail
50250 Kuala Lumpur
(03) 2149 0660
HSBC Bank Malaysia Berhad (127776-V)
Head Office
Personal Financial Services
2 Leboh Ampang
50100 Kuala Lumpur MALAYSIA
(03) 2050 7878
(Distributor for IESF)
(Distributor for IBF and IAPEF)
Kenanga Investor Berhad (353563-P)
Level 12, Kenanga International
Jalan Sultan Ismail
50250 Kuala Lumpur MALAYSIA
1800 88 3737
Kenanga Investment Bank Berhad (15678-H)
8th Floor, Kenanga International
Jalan Sultan Ismail
50250 Kuala Lumpur MALAYSIA
(03) 2164 9080
(Distributor for IEAF, IBGF and IAPEF)
(Distributor for DALI, DALI2, DALI3, IEF, IEAF, ISCF, IBF, IBGF,
IESF, ISF, IMMF, IDF, IAPEF, IGCEF and ICEF)
144
Kuwait Finance House (Malaysia) Berhad (672174T)
Level 18, Tower 2
Etiqa Twins
11, Jalan Pinang
P.O. Box 10103
50704 Kuala Lumpur
OCBC Bank (Malaysia) Berhad (295400-W)
Head Office
Menara OCBC
18, Jalan Tun Perak
50500 Kuala Lumpur MALAYSIA
(03) 2034 5034
(Distributor for DALI, DALI2, IAPEF and IMMF)
(Distributor for IEAF and IESF)
Phillip Mutual Berhad (570409-K)
B-2-7, Megan Avenue II
Jalan Yap Kwan Seng
50450 Kuala Lumpur MALAYSIA
(03) 2783 0300
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 IEAF, IBGF, IESF, IMMF, IAPEF and Azzam)
(Distributor for DALI2, IEAF, ISCF, IBF, IBGF and IESF)
Standard Chartered Bank Malaysia Berhad (115793-P)
Menara Standard Chartered
Level 8, 30 Jalan Sultan Ismail
50250 Kuala Lumpur MALAYSIA
(03) 7718 9688
United Overseas Bank (Malaysia) Bhd (271809K)
Level 2, Menara UOB
Jalan Raja Laut
50350 Kuala Lumpur MALAYSIA
(03) 2732 4332
(Distributor for IMMF, IAPEF, IBGF and Azzam)
(Distributor for IEAF, ISCF and IAPEF)
145
DISCLAIMER
DISCLAIMER BY DOW JONES
The "Dow JonesSM”, “Dow Jones Islamic Market Asia Pacific ex-Japan IndexSM“, “Dow Jones Islamic Market China/Hong
Kong Titans IndexSM”, "Dow Jones Islamic Market Oil & Gas IndexSM" and "Dow Jones Islamic Market Basic Materials
IndexSM" (the “Index”) is a product of S&P Dow Jones Indices LLC (“SPDJI”), and has been licensed for use by CIMBPrincipal. Standard & Poor‟s® and S&P® are registered trademarks of Standard & Poor‟s Financial Services LLC (“S&P”); Dow
Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed
for use by SPDJI and sublicensed for certain purposes by CIMB-Principal. DALI2, IEF, IBF, IAPEF, IGCEF and ICEF are not
sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, any of their respective affiliates (collectively, “S&P Dow Jones
Indices”). S&P Dow Jones Indices makes no representation or warranty, express or implied, to the owners of the DALI2, IEF, IBF,
IAPEF, IGCEF and ICEF or any member of the public regarding the advisability of investing in securities generally or in DALI2, IEF,
IBF, IAPEF, IGCEF and ICEF particularly or the ability of the Index to track general market performance. S&P Dow Jones Indices‟
only relationship to CIMB-Principal with respect to the Index is the licensing of the Index and certain trademarks, service marks
and/or trade names of S&P Dow Jones Indices and/or its licensors. The Index is determined, composed and calculated by S&P
Dow Jones Indices without regard to CIMB-Principal or the DALI2, IEF, IBF, IAPEF, IGCEF and ICEF. S&P Dow Jones Indices
has no obligation to take the needs of CIMB-Principal or the owners of DALI2, IEF, IBF, IAPEF, IGCEF and ICEF into
consideration in determining, composing or calculating the Index. S&P Dow Jones Indices is not responsible for and has not
participated in the determination of the prices, and amount of DALI2, IEF, IBF, IAPEF, IGCEF and ICEF or the timing of the
issuance or sale of DALI2, IEF, IBF, IAPEF, IGCEF and ICEF or in the determination or calculation of the equation by which
DALI2, IEF, IBF, IAPEF, IGCEF and ICEF is to be converted into cash, surrendered or redeemed, as the case may be. S&P Dow
Jones Indices has no obligation or liability in connection with the administration, marketing or trading of DALI2, IEF, IBF, IAPEF,
IGCEF and ICEF. There is no assurance that investment products based on the Index will accurately track index performance or
provide positive investment returns. S&P Dow Jones Indices LLC is not an investment advisor. Inclusion of a security within an
index is not a recommendation by S&P Dow Jones Indices to buy, sell, or hold such security, nor is it considered to be investment
advice.
S&P DOW JONES INDICES DOES NOT GUARANTEE THE ADEQUACY, ACCURACY, TIMELINESS AND/OR THE
COMPLETENESS OF THE INDEX OR ANY DATA RELATED THERETO OR ANY COMMUNICATION, INCLUDING BUT NOT
LIMITED TO, ORAL OR WRITTEN COMMUNICATION (INCLUDING ELECTRONIC COMMUNICATIONS) WITH RESPECT
THERETO. S&P DOW JONES INDICES SHALL NOT BE SUBJECT TO ANY DAMAGES OR LIABILITY FOR ANY ERRORS,
OMISSIONS, OR DELAYS THEREIN. S&P DOW JONES INDICES MAKES NO EXPRESS OR IMPLIED WARRANTIES, AND
EXPRESSLY DISCLAIMS ALL WARRANTIES, OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE
OR AS TO RESULTS TO BE OBTAINED BY CIMB-PRINCIPAL, OWNERS OF THE DALI2, IEF, IBF, IAPEF, IGCEF AND ICEF,
OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE INDEX OR WITH RESPECT TO ANY DATA RELATED
THERETO. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT WHATSOEVER SHALL S&P DOW JONES
INDICES BE LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES INCLUDING
BUT NOT LIMITED TO, LOSS OF PROFITS, TRADING LOSSES, LOST TIME OR GOODWILL, EVEN IF THEY HAVE BEEN
ADVISED OF THE POSSIBLITY OF SUCH DAMAGES, WHETHER IN CONTRACT, TORT, STRICT LIABILITY, OR
OTHERWISE. THERE ARE NO THIRD PARTY BENEFICIARIES OF ANY AGREEMENTS OR ARRANGEMENTS BETWEEN
S&P DOW JONES INDICES AND CIMB-PRINCIPAL, OTHER THAN THE LICENSORS OF S&P DOW JONES INDICES.
146
APPENDIX I – FINANCING FOR INVESTMENT
IN UNIT TRUST RISK DISCLOSURE
STATEMENT
Investing in a unit trust fund with financing is more risky than investing with your own savings.
You should assess if 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 obtained via financing 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 payments/repayments on the proposed financing. If your
financing is a variable rate financing, and if profit rates/interest rates rise, your total payment/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 am ounts
on top of your normal instalments. If you fail to comply within the time prescribed, your units may be sold to settle your
financing.
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 financing for investment. You should therefore carefully study
the terms and conditions before you decide to obtain a financing for investment. If you are in doubt in respect of any aspect of the
Risk Disclosure Statement or the terms of the financing for investment, you should consult the institution offering the financing.
ACKNOWLEDGEMENT OF RECEIPT OF RISK DISCLOSURE STATEMENT
I acknowledge that I have received a copy of this Financing For Investment in Unit Trust Risk Disclosure Statement and understand
its contents.
Signature
:
Full name
:
Date
:
147
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CIMB-Principal Asset Management Berhad (304078-K)
Enquiries:
Customer Care Centre (603) 7718 3100
Email service@cimb-principal.com.my
www.cimb-principal.com