manager a company incorporated in malaysia under the companies act 1965 … · 2017-03-22 · a...

Date Of Constitution28 March 2017

ManagerPacific Mutual Fund Bhd (336059-U)a company incorporated in Malaysia under the Companies Act 1965

TrusteeCIMB Islamic Trustee Berhad (167913-M)

INVESTORS ARE ADVISED TO READ AND UNDERSTAND THE CONTENTS OF THE PROSPECTUS. IF IN DOUBT, PLEASE CONSULT A PROFESSIONAL ADVISER.

FOR INFORMATION CONCERNING CERTAIN RISK FACTORS, WHICH SHOULD BE CONSIDERED BY PROSPECTIVE INVESTORS, SEE ‘RISK FACTORS’ COMMENCING ON PAGE 11.

THIS PROSPECTUS IS DATED 28 MARCH 2017 AND EXPIRES ON 27 MARCH 2018.

www.pacificmutual.com.my 03-7725 9877

A member of the OCBC Group

i

MESSAGE FROM CEO Dear Investors,

We are pleased to present to you the Pacific Dynamic Global Islamic Fund (“the Fund”).

The Fund aims to provide capital growth and income in the medium to long term by investing in a global portfolio of Shariah-compliant equities, sukuk and Islamic money market instruments.

The Fund is suitable for investors who: • seek an actively managed Shariah-compliant portfolio; • seek access to global markets; • seek capital growth and income; and • have a medium to long-term investment horizon.

You should also consider the specific and principal risks affecting the Fund and other risk factors when investing in the Fund. For more details of these risks, please refer to page 7 and pages 11 to 13 of this prospectus.

There are fees and charges involved when investing in the Fund such as sales charge, management fee, trustee fee, switching fee, transfer fee and other expenses. Please refer to the ‘Key Information’ section on page 9 and ‘Fees, Charges And Expenses’ section on pages 24 and 25 for more information.

If you have any queries about the information in this prospectus or would like to know more about our Fund, please feel free to contact our client relations personnel at 03-7725 9877 or e-mail us at [email protected]. Alternatively, you may contact our branches or authorised distributors. Please refer to pages 58 and 59 for the full contact details.

Thank you.

Yours sincerely,

TEH CHI-CHEUN Executive Director, CEO and CIO

ii

RESPONSIBILITY STATEMENTS

This prospectus has been reviewed and approved by the Directors of Pacific Mutual Fund Bhd (“the Manager”) 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, that there are no false or misleading statements, or omission of other facts which would make any statement in the prospectus false or misleading.

STATEMENTS OF DISCLAIMER The Securities Commission Malaysia has authorised the Fund and a copy of this prospectus has been registered with the Securities Commission Malaysia.

The authorisation of the Fund, and registration of this prospectus, should not be taken to indicate that Securities Commission Malaysia recommends the said Fund or assumes responsibility for the correctness of any statement made, opinion expressed or report contained in this prospectus.

The Securities Commission Malaysia is not liable for any non-disclosure on the part of the Manager responsible for the said Fund and takes no responsibility for the contents in this prospectus. The Securities Commission Malaysia makes no representation on the accuracy or completeness of this prospectus, and expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of its contents.

INVESTORS SHOULD RELY ON THEIR OWN EVALUATION TO ASSESS THE MERITS AND RISKS OF THE INVESTMENT. IF INVESTORS ARE UNABLE TO MAKE THEIR OWN EVALUATION, THEY ARE ADVISED TO CONSULT PROFESSIONAL ADVISERS.

No units will be issued or sold based on this prospectus later than one year after the date of this prospectus.

Investors should note that they may seek recourse under the Capital Markets And Services Act 2007 for breaches of securities laws and regulations including any statement in the prospectus that is false, misleading, or from which there is a material omission; or for any misleading or deceptive act in relation to the prospectus or the conduct of any other person in relation to the Fund.

While it is the duty of the Manager to ensure the Fund is being correctly valued or priced, the Manager cannot be held liable for any error in prices published in the newspapers and the websites of our distributor(s) for the Fund. Pursuant to the Guidelines on Unit Trust Funds issued by the Securities Commission Malaysia, where there is incorrect valuation or pricing of units, the Manager will take immediate remedial action to rectify the error, which extends to reimbursement of money by the Manager to the Fund and/or from the Fund to the unitholders or former unitholders. Rectification need not be extended to any reimbursement where it appears to the trustee that the incorrect pricing is of minimal significance.

While it is the duty of the Manager to ensure that all comments given to the media is accurate and true at the time the comments were given, misquotation may still occur either by the media or third parties, which are out of the Manager’s control. In such situations, the Manager and its employees hold no responsibility for any claims and liabilities due to the misquotations by the media and/or third parties, and are under no obligation to fulfil any expectation or demand in relation to the misquoted statements.

The distribution of this prospectus and offering, purchase, sale or transfer of units of the Fund in certain jurisdictions may be restricted by law. In these jurisdictions, other than Malaysia, the Manager has not applied to allow distribution of this prospectus or units of the Fund. Therefore, this prospectus does not constitute an offer or invitation to purchase units of the Fund in any jurisdiction in which such offer or invitation would be unlawful.

Investors should be aware that for investments of our Fund made via any of our IUTA, where applicable, any investment transactions are subject to the terms and conditions of the respective IUTA.

The Pacific Dynamic Global Islamic Fund has been certified as Shariah-compliant by the Shariah Adviser appointed for the said Fund.

The Shariah Adviser for Pacific Dynamic Global Islamic Fund confirms that the investment portfolio of this Fund comprise securities which have been classified as Shariah-compliant by the Shariah Advisory Council of the Securities Commission Malaysia (“SACSC”) and/or the Shariah Supervisory Board of Dow Jones Islamic Market Indices. For the securities which are not certified by the SACSC and/or the Shariah Supervisory Board of Dow Jones Islamic Market Indices, the status of the securities has been determined in accordance with the ruling issued by the Shariah Adviser.

iii

CONTENTS

Definitions ………………………………………………………………………………………. 1

Corporate Directory …………………………………………………………………………… 4

Key Information Of The Fund ………..…………………………………………….…….….. 6 • Key Information 6 • Standard Transaction Details Pertaining To Investing In The Pacific Dynamic Global Islamic Fund

Managed By Pacific Mutual 10

Risk Factors …………………………………………………………………………….………. 11 • General Risks 11 • Specific Risks 13

Understanding Of Shariah-Compliant Unit Trust Fund …………………….………....… 14 • Treatment For Disposal Of Shariah Non-Compliant Securities For The Fund 15 • Cleansing/Purification Process Of The Fund 15

More Information About The Pacific Dynamic Global Islamic Fund ………................. 17 • Investment Objective 17 • Potential Benefits 17 • Investment Policy And Strategy 17 • Permitted Investments 20 • Investment Restrictions And Limits 20 • Risk Management Strategies And Techniques 22 • Frequency Of Trading 23 • Bases Of Valuation Of Investments 23

Fees, Charges And Expenses ………………………………………………………….……. 24 • Sales Charge 24 • Redemption Charge 24 • Annual Management Fee 24 • Annual Trustee Fee 24 • Switching Fee 25 • Transfer Fee 25 • Expenses 25 • Rebates And Soft Commissions 25

Transaction Information ………………………………………………………………….…… 26 • Pricing Calculation 26 • Minimum Initial Investment 26 • Minimum Additional Investment 27 • Purchase 27 • Redemption 28 • Switching Facility 29 • Transfer 29 • Cooling-Off Period 29 • Distribution Policy And Reinvestment Policy 30 • Unclaimed Moneys 30 • Keeping Abreast Of Developments In The Fund 31 • Customer Service 31

iv

Salient Terms Of The Deed …………………………………………………………….…..… 32 • Your Rights As A Unitholder 32 • Your Liabilities As A Unitholder 32 • Your Limitations And Restrictions As A Unitholder 32 • Maximum Fees And Charges 32 • Permitted Expenses Payable Out Of A Fund’s Property 33 • Removal, Replacement And Retirement Of The Management Company 33 • Removal, Replacement And Retirement Of A Trustee 34 • Termination Of A Fund 34 • Meetings Of Unitholders 34

All About The Manager – Pacific Mutual Fund Bhd …………..………………………….. 35 • Our Shareholders 35 • Our Core Business 35 • Our Corporate Vision And Mission 35 • Our Investment Philosophy 35 • Our Roles And Responsibilities 35 • Our Financial Position 36 • Our People 36 • Material Litigation And Arbitration 43

Trustee Of The Fund, Its Duties And Responsibilities …………………………………... 44 • CIMB Islamic Trustee Berhad (167913-M) 44 • Delegation Of Share Custodial Functions 45 • Material Litigation And Arbitration 45 • The Trustee’s Responsibilities 45 • Trustee’s Statement Of Responsibility 45

Shariah Adviser ………………………………………………………………………………... 46 • More About BSSB 46 • Shariah Investment Guidelines Adopted by BSSB 47

Taxation Adviser's Letter ……………………………………………………………………. 50

Related Party Transactions / Conflict Of Interests …………………………………..…. 55 • CIMB Islamic Trustee Berhad’s Policy On Dealing With Conflict Of Interest Elements 55

Additional Information ………………………………………………………………….……. 56 • Policies And Procedures To Prevent Money Laundering Activities 56 • Prudential Control 56

Consents …………………………………………….………………………………………….. 56

Exemption Granted By The Securities Commission .………………………………...… 56

Documents Available For Inspection …………………………………………………...…. 56

Inspection Of The Register Of Unitholders …………………………………….……….... 57

Directors' Declaration…………………………………………………………………………. 57

List Of Pacific Mutual Fund Bhd Offices, Agency Offices And Institutional Unit Trust Advisers ………………………………………………………………………….…........ 58

1 Definitions

DEFINITIONS

The meaning of some terms in this prospectus is explained below:

Board of Directors / Independent Directors /

Directors

Directors of Pacific Mutual Fund Bhd

Bursa Malaysia The stock exchange managed or operated by Bursa Malaysia Securities Berhad. business day(s) A day on which the Bursa Malaysia is open for trading.

deed The deed and all supplemental deeds entered into between the Manager and the Trustee in relation to the Fund.

duration This is the tenure of a fixed income investment, taking into account any profit payments made during its tenure before maturity. A fixed income investment with no profit payments until maturity will have its duration the same as its tenure.

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

equity-related securities Shariah-compliant securities where the underlying asset is a Shariah-compliant equity security. The return on Shariah-compliant equity-related securities is dependent upon the performance of the underlying Shariah-compliant equities. For this Fund, the Shariah-compliant equity-related securities comprise only Shariah-compliant warrants and right issues that are issued in relation to Shariah-compliant equities in which the Fund has invested.

Fitch Fitch Ratings Fund Pacific Dynamic Global Islamic Fund

Funds For the purpose of this prospectus, unless the context otherwise requires, Funds mean all funds managed by the Manager.

Fund Category / Characteristic

Pacific Mutual categorises its Funds under the following characteristics: Fund Category Characteristic • Money Market • Islamic Money Market • Fixed Income • Sukuk

Conservative

• Balanced • Mixed Assets

Fairly Conservative

• Mixed Assets1 • Equity (Growth & Income)

Fairly Aggressive

• Equity (Growth) Aggressive 1 – Where the equity strategy is more aggressive e.g. emerging markets.

GST Tax levied on goods and services pursuant to the Goods and Services Tax Act 2014.

IOSCO International Organization of Securities Commissions

2 Definitions

Islamic money market

instruments (a)

(b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l)

Mudarabah Interbank Investment (MII) Wadiah Acceptance Government Investment Issue (GII) Bank Negara Monetary Notes-i (BNMN-i) Sell and Buy Back Agreement (SBBA) Cagamas Mudharabah Bonds (SMC) When Issue (WI) Islamic Accepted Bills (IAB) Islamic Negotiable Instruments (INI) Islamic Private Debt Securities Ar Rahnu Agreement-I (RA-i) Sukuk BNM Ijarah (SBNMI)

IUTA Institutional Unit Trust Advisers IUTA is an institution, body or organisation that is licensed to distribute unit trust funds. IUTA must be registered with the Federation of Investment Managers Malaysia (FiMM).

MER The management expense ratio (MER) is the total expenses incurred by the Fund during the year as compared to its average NAV. Management expenses include management fee, trustee fee and expenses incurred for fund administrative services. A low MER indicates the effectiveness of the Manager in managing the expenses of the Fund. Total annual expenses incurred by the Fund x 100 Average net asset value (NAV) of the Fund The MER does not include brokerage and other transaction fees.

Moody’s Moody’s Investors Service NAV Net asset value (NAV) of the Fund is the total value of the Fund’s assets minus its

liabilities at a valuation point. In computing the annual management fee and annual trustee fee, the NAV of the Fund should include the management fee and the trustee fee for the relevant day.

NAV per unit NAV per unit of the Fund is the NAV divided by the total number of units in circulation, at a particular valuation point.

over-the-counter (OTC) This is the transaction of financial securities or instruments directly between the buyer and seller and is not conducted via a market/exchange.

Pacific Mutual / Company / Manager / we

Pacific Mutual Fund Bhd (336059-U)

prospectus Prospectus in relation to the Fund managed by Pacific Mutual. PTR The portfolio turnover ratio (PTR) indicates how often the Fund buys and sells

investments. A portfolio turnover rate of one means that the average holding period of investments purchases is one year. A high PTR indicates that the Fund buys and sells investments very often. (Total acquisitions and disposals of investments for the year) / 2 Average net asset value (NAV) of the Fund

SACSC Shariah Advisory Council of the Securities Commission Malaysia SC Guidelines Guidelines on Unit Trust Funds issued by the Securities Commission Malaysia as

may be amended from time to time. SC / Securities Commission Securities Commission Malaysia

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).

Shariah adviser Means a person or a corporation approved and registered by the Securities Commission Malaysia as Shariah adviser under the Registration of Shariah Advisers Guidelines.

3 Definitions

Shariah Adviser BIMB Securities Sdn Bhd (290163-X)

Shariah requirements Is a phrase or expression which generally means making sure that any human conduct must not involve any elements which are prohibited by the Shariah and that in performing that conduct all the essential elements that make up the conduct must be present and each essential element must meet all the necessary conditions required by the Shariah for that element.

short term / medium term / long term

Short term - below one year; medium term - one year to three years; long term - above three years.

sukuk Refers to certificates of equal value which evidence undivided ownership or investment in the assets using Shariah principles and concepts endorsed by the SACSC.

Trustee CIMB Islamic Trustee Berhad (167913-M)

unitholder The person for the time being who is registered pursuant to the deed as a holder of units, including a jointholder.

warrants Shariah-compliant warrants are financial instruments that give the buyer the right to purchase Shariah-compliant equity securities at a fixed price up to the expiry date of the Shariah-compliant warrants.

yield Yield is the return an investor will receive when holding a fixed income investment to maturity.

4 Corporate Directory

CORPORATE DIRECTORY

Manager Pacific Mutual Fund Bhd (336059-U) Business Office 1001, Level 10, Uptown 1, No. 1 Jalan SS21/58, Damansara Uptown, 47400 Petaling Jaya, Selangor Darul Ehsan Tel: 03-7725 9877 Fax: 03-7725 9860 E-mail: [email protected] Website: www.pacificmutual.com.my Registered Office 19th Floor, Menara OCBC, No. 18 Jalan Tun Perak, 50050 Kuala Lumpur Tel: 03-2783 3996; 03-2783 3648 Manager’s Delegate (Internal Audit Function) Boardroom Corporate Services (KL) Sdn Bhd (3775-X) Lot 6.05, Level 6, KPMG Tower, 8 First Avenue, Bandar Utama, 47800 Petaling Jaya, Selangor Darul Ehsan, Malaysia Tel: 03-7720 1188 Fax: 03-7720 1111 Website: www.boardroomlimited.com Board Of Directors Gerard Lee How Cheng (Chairman) James Tan Thian Peng Dato’ Ahmad Zahudi bin Haji Salleh Ong Eu Jin* Datuk Lee Say Tshin* Teh Chi-cheun Audit Committee James Tan Thian Peng (Chairman) Ong Eu Jin** Datuk Lee Say Tshin** Investment Committee Gerard Lee How Cheng (Chairman) James Tan Thian Peng Mej. Jen. (B) Dato’ Paduka Che Hasni bin Che Ahmad Dato’ Ahmad Zahudi bin Haji Salleh Ong Eu Jin*** Datuk Lee Say Tshin*** * Independent Directors ** Independent Audit Committee members *** Independent Investment Committee members

Trustee CIMB Islamic Trustee Berhad (167913-M) Registered Office: Level 13, Menara CIMB, Jalan Stesen Sentral 2, Kuala Lumpur Sentral, 50470 Kuala Lumpur Tel: 03-2261 8888 Fax: 03-2261 0099 Website: www.cimb.com Business Office: Level 21, Menara CIMB, Jalan Stesen Sentral 2, Kuala Lumpur Sentral, 50470 Kuala Lumpur Tel: 03-2261 8888 Fax: 03-2261 9889 Delegate: CIMB Islamic Bank Berhad (671380-H) Registered Office: Level 13, Menara CIMB, Jalan Stesen Sentral 2, Kuala Lumpur Sentral, 50470 Kuala Lumpur Tel: 03-2261 8888 Fax: 03-2261 8889 Website: www.cimb.com Business Office: Level 21, Menara CIMB, Jalan Stesen Sentral 2, Kuala Lumpur Sentral, 50470 Kuala Lumpur Tel: 03-2261 8888 Fax: 03-2261 9892 Shariah Adviser BIMB Securities Sdn Bhd (290163-X) 32nd Floor, Menara Multi-Purpose, Capital Square, No. 8, Jalan Munshi Abdullah, 50100 Kuala Lumpur Tel: 03-2613 1600 Fax: 03-2613 1799 Website: www.bimbsec.com.my Auditors Ernst & Young (AF: 0039) Level 23A, Menara Milenium, Jalan Damanlela, Pusat Bandar Damansara, 50490 Kuala Lumpur Tel: 03-7495 8000 Website: www.ey.com/my

5 Corporate Directory

Tax Advisers Ernst & Young Tax Consultants Sdn Bhd (179793-K) Level 23A, Menara Milenium, Jalan Damanlela, Pusat Bandar Damansara, 50490 Kuala Lumpur Tel: 03-7495 8000 Website: www.ey.com/my Company Secretaries Quah Boon Huat (MAICSA 7032217) Chong Yok Hua (MAICSA 0861045) 19th Floor, Menara OCBC, No. 18 Jalan Tun Perak, 50050 Kuala Lumpur Tel: 03-2783 3996; 03-2783 3648 Banker OCBC Bank (Malaysia) Berhad (295400-W) Menara OCBC, No. 18 Jalan Tun Perak, 50050 Kuala Lumpur Tel: 1300 88 5000 Solicitors For The Manager Soon Gan Dion & Partners Advocates and Solicitors 1st Floor, No. 73, Jalan SS 21/1A, Damansara Utama, 47400 Petaling Jaya, Selangor Federation Of Investment Managers Malaysia (FiMM) 19-06-1, 6th Floor, Wisma Tune, No. 19 Lorong Dungun, Damansara Heights, 50490 Kuala Lumpur Website: www.fimm.com.my

6 Key Information Of The Fund

KEY INFORMATION OF THE FUND

Management Company: PACIFIC MUTUAL FUND BHD (336059-U)

KEY INFORMATION

FUND Pacific Dynamic Global Islamic Fund

FUND PROFILE • Fund Categoryo • Fund Type • Characteristico

• Mixed assets (Islamic) • Growth and income • Fairly aggressive

INVESTMENT OBJECTIVE

Aims to provide capital growth and income∆ in the medium to long term by investing in a global portfolio of Shariah-compliant equities, sukuk and Islamic money market instruments.

INVESTMENT POLICY AND STRATEGY Please refer to pages 17 to 19.

The Fund can invest in a global portfolio of Shariah-compliant equities and equity-related securities, sukuk and Islamic money market instruments. Investments of the Fund may include Shariah-compliant exchange traded funds (ETF) and Shariah-compliant collective investment schemes (CIS). The Fund’s asset allocation is fully flexible, with the allocation potentially ranging from 0% to 100% in any of the asset categories.

MINIMUM AND MAXIMUM LEVELS OF ASSET ALLOCATION

Shariah-compliant equities and equity-related securities, ETF and CIS allocation: • Maximum: 100% of the Fund’s NAV • Minimum: 0% of the Fund’s NAV Sukuk, Islamic money market instruments, liquid assets and Shariah-compliant CIS allocation: • Maximum: 100% of the Fund’s NAV • Minimum: 0% of the Fund’s NAV

o Refer to definitions on page 1. ∆ Income is in reference to the Fund’s distribution, which could be in the form of cash or unit. Please refer to

page 30 for further details on distribution policy and reinvestment policy.

This section is only a summary of the salient information about the Fund. Investors should read and understand the whole prospectus before making any investment decisions.



PRINCIPAL RISKS Please refer to pages 11 to 13.

• Timing of asset allocation risk • Reclassification of Shariah status risk • Market risk • Country risk • Currency risk • Company specific risk • Warrants risk • Liquidity risk • Interest rate risk • Credit risk and default risk • ETF risk

INVESTOR PROFILE

Those seeking to invest in an actively managed Shariah-compliant portfolio; seeking access to global markets; seeking capital growth and income∆; and have a medium to long-term investment horizon.

DISTRIBUTION POLICY* Please refer to page 30.

Subject to the availability of income, distribution of income will be made once a year.

PERFORMANCE BENCHMARK

Composite Benchmark (50% in Dow Jones Islamic Market World Index [DJIM] and 50% in 3-Month Islamic Interbank Money Market [IIMM] Rate)

GENERAL INFORMATION Trustee

CIMB Islamic Trustee Berhad (167913-M)

Financial Year End

30 June

Initial Offer Period

28 March 2017 – 17 April 2017 (21 days)

Initial Offer Price

RM0.5000

∆ Income is in reference to the Fund’s distribution, which could be in the form of cash or unit. Please refer to


* Income distributions are not guaranteed and may not be repeated. Distributions of income will only be made from realised gains or realised income obtained from the investments of the Fund.



Switching Facility

To carry out a switching transaction, all you need to do is complete the transaction form or send a letter of request to our head office or any of our branches by 4.00 p.m. on any business day.

There are no restrictions on the number of switching transactions that you may carry out; however, all switching transactions are subject to the following conditions: • You may switch your investments into all other Funds managed by

the Manager except for wholesale Funds; • The Funds that you intend to switch into must have been in

existence for at least three months from the launch dates of those Funds;

• The minimum number of units to be switched is 1,000 units and the value of units switched must meet the minimum investment amount of the switch-in Funds, whichever is higher;

• The minimum number of units required to be held in the switch-out Fund is 500 units for a partial switch; and

• For the avoidance of doubt, if you have purchased units of the Fund through our IUTA, the switching transaction is subject to the terms and conditions of the IUTA.

Switching will be carried out at the respective prevailing NAV per unit of the Fund to be switched from and the Fund to be switched into on a business day, when we receive the switching request by 4.00 p.m. on any business day (subject to availability and terms of the Fund to be switched into). Please refer to page 29 for the terms and conditions of the switching facility for the Fund.

Transfer Facility Please refer to page 29.

Transfer facility is available for the Fund, free of charge.

MER**

Not available

PTR (times)**

Not available

** Refer to definitions on page 2.


The table below describes the charges that you may directly incur when you buy, redeem or switch units of the Fund:


Please note that normal banking charges are applicable to the investors. MAXIMUM SALES CHARGE# • Pacific Mutual • Unit Trust Consultants • IUTA

• 5.50% of the Fund’s NAV per unit • 5.50% of the Fund’s NAV per unit • 5.50% of the Fund’s NAV per unit

REDEMPTION CHARGE

Nil

SWITCHING FEE Please refer to page 25.

If you wish to switch into other Funds, you will have to pay the applicable differences in sales charge between the Funds to be switched from and the Funds to be switched into. There will be no sales charge imposed if the Funds to be switched into has a lower sales charge.

TRANSFER FEE

Nil

# The maximum sales charge to be imposed by all our authorised distributors as stated on pages 58 and 59 for

the Fund is listed as per abovementioned. Investors may negotiate for a lower sales charge.

The table below describes the fees that you may indirectly incur when you invest in the Fund:


ANNUAL MANAGEMENT FEE

1.50% p.a. of the NAV of the Fund

ANNUAL TRUSTEE FEE

0.06% p.a. of the NAV of the Fund, calculated and accrued on a daily basis (excluding foreign custodian fees and charges).

OTHER EXPENSES

Please refer to page 25.

There are fees and charges involved and investors are advised to consider them before investing in the Fund. All fees and charges payable to the Manager and/or the Trustee are

subject to any applicable taxes (including but not limited to GST) and/or duties as may be imposed by the government or other authorities from time to time.


STANDARD TRANSACTION DETAILS PERTAINING TO INVESTING IN THE PACIFIC DYNAMIC GLOBAL ISLAMIC FUND MANAGED BY PACIFIC MUTUAL (please refer to pages 26 to 30 for more details)

Minimum Initial And Additional Investment For Cash Plan And Saver's Plan

Fund

Cash Plan Saver’s Plan

Pacific Dynamic Global Islamic Fund

You may invest by cash on a lump sum basis. The initial and additional investment must be a minimum of RM500 and RM100 respectively.

You may fix your own time frame for saving, starting with a minimum of five years and a monthly investment in multiples of RM50. You may activate your Saver's Plan anytime with an initial investment of two times the monthly investment amount.

The initial and additional investment amount referred here includes the sales charge and GST on sales charge of the Fund.

The Manager has the discretion to accept a lower amount than that disclosed in the prospectus as the Manager deems fit. All amounts referred here include the sales charge and GST on sales charge of the Fund. For more explanation on the sales charge, please refer to pages 24, 27 and 28.

Investments made via our IUTA may be subject to their terms and conditions.

Minimum Redemption Amount There is no minimum redemption amount.

Redemption Of Units You can withdraw or redeem all or part of your units in the Fund, in writing, at any time provided the minimum number of units left in an account after the partial withdrawal is 500 units. You will be paid within 10 days from the date we receive the duly completed and accepted original transaction form.

Notice Of Cooling-Off Period If you are a first-time investor of Pacific Mutual, you are given a cooling-off period of six business days. Within these six business days from the date of receipt of the application form by Pacific Mutual, you have the right to call for withdrawal of your investment. However, this is not applicable to: • Corporate investors / institutional investors; • Staff of Pacific Mutual and Lion Global Investors Limited and their immediate family members; and • Persons registered with a body approved by the Securities Commission to deal in unit trusts.

The refund for every unit with regards to the cooling-off is the sum of: • the NAV per unit on the day the units were purchased; and • sales charge and GST on sales charge per unit originally imposed on the day the units were purchased. Essentially, you will receive a full refund of the initial investment paid by you within 10 days of receipt of the original notice of cooling-off by Pacific Mutual.

Distribution Reinvestment Option In the absence of written instructions to the contrary, distributions will be reinvested based on the NAV per unit of the Fund on the fourth business day after the declaration of distributions at no cost. For further details, please refer to page 26 on valuation of NAV and valuation of units, and page 30 on distribution policy and reinvestment policy.

Deed Of The Fund

Fund Deed(s)

Pacific Dynamic Global Islamic Fund Supplemental Master Deed: 11 February 2011 Second Supplemental Master Deed: 8 March 2016

For information concerning certain risk factors, which should be considered by prospective investors, see “Risk Factors” commencing on page 11. Unit prices and distributions payable, if any,

may go down as well as up.

11 Risk Factors

RISK FACTORS

GENERAL RISKS The following are the general risks for the Fund:

• Company specific risk – This risk refers to the individual risk of the respective companies issuing securities. This risk could be a result of changes to the business performance of the company, consumer tastes and demand, lawsuits, competitive operating environment and management practices. Developments in a particular company which the Fund has invested in would result in fluctuations in the security price of that company and thus the value of the Fund's investments. This risk is mitigated by diversification in a portfolio comprised of securities of many companies.

In addition, this risk may occur when an investee company's business or fundamentals deteriorate or if there is a change in management policy resulting in a downward revision or even removal of the company's dividend policy. Such events may result in an overall decrease in dividend income received by the Fund and possible capital loss due to a drop in the security price of a company that cuts or omits its dividend payments. This risk may be mitigated by investing mainly in companies with a consistent historical record of paying dividends, strong cash flow, or operating in fairly stable industries.

• Country risk – Investments of the Fund in any countries may be affected by changes in the economic and political climate, restriction on currency repatriation or other developments in the law or regulations of the countries in which the Fund invests in. For example, the deteriorating economic condition of such countries may adversely affect the value of the investments undertaken by the Fund in those affected countries. This may cause the NAV or prices of the Fund to fall. This risk may be mitigated by conducting thorough research on the respective countries, their regulatory framework, economics, companies, politics and social conditions as well as minimising or omitting investments in countries that are economically or politically unstable or lack a regulatory financial framework and adequate investor protection legislation.

• Credit risk and default risk – Credit risk relates to the creditworthiness of the issuers of fixed income instruments and their expected ability to make timely payment of profits and/or principal. Any adverse situations faced by an issuer may impact the value as well as liquidity of fixed income instruments issued. In the case of fixed income instruments assigned a rating by a credit rating agency, this may lead to a lowering of the credit rating of the instrument. Default risk relates to the risk that an issuer of a fixed income instrument either defaults on payments or fails to make payments in a timely manner which will in turn adversely affect the value of the fixed income instrument and thus value of the Fund’s investment in such instruments. This risk is reduced by analysis of companies issuing such instruments, taking into account the credit rating (which must have a long-term rating of at least A2 by RAM Ratings or an equivalent rating) and diversification in a range of fixed income investments issued by different companies and Islamic licensed financial institutions.

• Currency risk – As the investments of the Fund are denominated in currencies other than Malaysian Ringgit (“Ringgit”), any fluctuations in the exchange rate between the Ringgit and the currencies in which the investments are denominated may have an impact on the value of these investments. If the currencies in which the investments are denominated depreciate against the Ringgit, this will have an adverse effect on the NAV of the Fund (on the reverse, if the foreign currencies appreciate against the Ringgit, the Fund’s NAV may increase). Any of such gains or losses arising from fluctuations in exchange rates may decrease or increase returns on investment in the Fund. This risk may be mitigated by reducing exposure to investments denominated in a currency that is expected to decline versus the Ringgit.

12 Risk Factors

• ETF risk – Exchange traded funds (ETF) are collective investment schemes designed to replicate (to the best extent possible) the performance of an equity or a fixed income index or a portfolio of securities. ETF are listed on a stock exchange. The following are key risks of investing in ETF.

▪ Tracking error: ETF are designed to replicate the performance of a particular index. However, an ETF’s return will be lower than the index it tracks owing to the following factors: i) An ETF charges management fees and has to pay fund administration expenses, compared to an

index which does not have such fees and expenses; ii) Foreign currency movements; iii) An ETF’s portfolio may not be constructed exactly the same as the index – in terms of the securities

held and/or the percentage holding of each security. For example, assume there is an equity index A that comprises 20 different stocks each with an allocation of 5% to make up the full index. Assume there is ETF A which attempts to mirror index A but its top 5 stocks each have an allocation of 6% of the ETF’s holdings, with the remaining stocks each having an allocation of 4.7% in the ETF – which may lead to some divergence in returns from the index tracked. Another difference would be where instead of holding 20 stocks, ETF A holds only 18 due to the remaining 2 stocks being difficult to purchase (as an example); or

iv) Stocks are periodically added and removed (rebalancing) from an index and the rebalancing is immediate with no actual buy or sell transactions and thus with no costs involved. On the other hand, for an ETF to rebalance, there is a need to transact in stocks to reflect the changes in the index. Time will be needed by the ETF for a rebalancing effort and prices of stocks may fluctuate resulting in different transacted prices between the ETF and the index. Costs are also incurred in the rebalancing for the ETF.

▪ ETF trading at a premium or discount: ETF are traded on both a primary market (private market between creator of the ETF and selected parties called participating dealers) and a secondary market, i.e. the stock exchange that is open to the public. On the primary market, ETF are traded at the NAV of the ETF. On the secondary market, while the NAV of an ETF is a key factor in influencing the price of an ETF quoted on the exchange, it is also determined by the public’s supply and demand of the ETF on the exchange. Thus, depending on investor sentiment, an ETF may be traded on the secondary market at a price that is lower or higher than the ETF’s NAV. This discrepancy may be further accentuated in uncertain or volatile financial or economic conditions. The price discrepancies may lead to paying premiums to NAV on purchase of the ETF or selling at a discount to NAV – leading to lower returns for the Fund.

These ETF risks are mitigated by the Manager of the Fund investing in ETF that replicate widely followed equity indices such as the FTSE Bursa Malaysia Top 100 Index (local example), S&P 500 Index and MSCI World Index (foreign examples) where tracking error and price discrepancies are lower compared to ETF tracking less followed indices. Further, for tracking error, the Manager will invest in ETF with the highest cost efficiency (i.e. low fees and low ETF expenses relative to ETF asset size).

• Interest rate risk – Interest rate risk refers to the impact of interest rate changes on the valuation of fixed income investments. When interest rates rise, prices of the fixed income investments generally decline and this may lower the market value of the Fund’s investments. The reverse may apply when interest rates fall. This risk will be mitigated by managing the duration structure of the Fund’s fixed income investments.

Note: Islamic fixed income investments do not pay interest. However, the interest rate is a key financial indicator and factor that can have an impact on all fixed income investments, whether or not they are Shariah-compliant or otherwise.

• Liquidity risk – Liquidity risk refers to the ease of liquidating an investment depending on the asset’s volume traded in the market. If the Fund holds investments that are illiquid or are difficult to dispose of, the value of the Fund will be negatively affected when it has to sell such investments at unfavourable prices. The Fund will invest in investments that are highly liquid (easily bought and sold in the market) and this allows the Fund to meet sizeable redemptions without jeopardising returns.

13 Risk Factors

• Market risk – This risk refers to the possibility that an investment will lose value because of a general decline in financial markets cause by economic, political, social and/or other factors. This will result in a decline in the Fund’s NAV.

• Warrants risk – Warrants are financial instruments that give the buyer the right to purchase equity securities at a pre-determined price (“exercise price”) up to the expiry date of the warrants. The price movements of the equity security to which a warrant is linked affects the price of a warrant. Movements in price of an equity security will generally result in larger movements in the price of any warrants related to the equity – meaning that warrants are expected to have high price volatility relative to the equity security. This means that when the price of an equity security falls, warrants may underperform the equity security, i.e. the price of a warrant may fall more than the percentage fall in the price of the equity security to which it is related. On the reverse, a warrant may outperform the equity security to which it is related, i.e. the warrant price may rise by a percentage that is higher than the rise of the equity security.

Warrants have a limited life and will depreciate in value as they approach their expiry date. If at any time up to the expiry date of a warrant, the warrant’s exercise price is above the market price of the equity security, the warrant is “out of the money” and has little or no value. Warrants that are not exercised at maturity become worthless.

Holders of warrants are not entitled to any dividends that may be paid to investors in an equity security.

Warrants risk may be mitigated by conducting extensive fundamental analysis of the warrants’ equity securities in relation to the market price and exercise price of the warrants and to determine if they should continue to be held for the Fund.

SPECIFIC RISKS The Fund is subject to the following specific risks:

• Reclassification of Shariah status risk – This risk refers to the risk that the currently held Shariah-compliant investments in the Fund may be reclassified to be Shariah non-compliant. For Shariah-compliant securities, the reclassification may occur in the periodic review of the securities by the SACSC, the Shariah Adviser or the Shariah boards of the relevant Islamic indices. If this occurs, the Manager will take the necessary steps to dispose such investments. There may be opportunity loss to the Fund due to the Fund not being allowed to retain the excess capital gain derived from the disposal of the Shariah non-compliant investments. Please refer to pages 47 to 49 on the Fund’s Shariah methodology on the treatment of gains and losses as a result of the reclassification of Shariah non-compliant investments. This risk is mitigated by constantly monitoring the Shariah compliance status of the securities. Detailed fundamental analysis of business stability, financial position and debt ratio analysis of the issuers of the securities would also help to mitigate such risk. Business stability is assessed to ensure there are no frequent business acquisitions that may potentially lead to a security being Shariah non-compliant. Fundamental (balance sheet) analysis is undertaken to ensure that financial ratio benchmarks are not borderline and thus susceptible to being Shariah non-compliant with just small increases in debt levels (from conventional debt financing).

• Timing of asset allocation risk – This is the risk that given prevailing economic and financial market conditions, the Manager of the Fund makes inappropriate asset allocation decisions between the equity and fixed income asset categories, potentially resulting in lower returns to the Fund. To mitigate such risk, the Manager conducts detailed fundamental macro research and analysis on financial market trends and keeps regular updates on them. Factors such as economic and political conditions, interest rate environment, valuations of markets, liquidity and investor sentiment are taken into account before making asset allocation decisions or changes.

14 Understanding Of Shariah-Compliant Unit Trust Fund

UNDERSTANDING OF SHARIAH-COMPLIANT UNIT TRUST FUND

Similar to a conventional unit trust fund, a Shariah-compliant unit trust fund is a collective investment scheme, which pools money from investors with similar objectives in a special fund managed by professional fund managers. The pooled money will then be invested in a diversified portfolio of Shariah-compliant securities and other assets in accordance with the unit trust fund’s investment objective and as permitted under the SC Guidelines and regulations with the condition that all the investments must comply with Shariah requirements.

The main differences between a conventional unit trust fund and a Shariah-compliant unit trust fund exist in the following areas; objective of the fund, structure, investment strategy, operations and management, documentation, investment avenues and activities, and accounts and reporting.

The objective of a particular type of fund is normally to maximise returns that are usually composed of both capital and income growth. Achieving this objective will depend on, among others, the fund size, period of investment, investment strategy as well as the type of instruments that are invested in and the ability to manage risk. Accordingly, the objective of a particular Shariah-compliant unit trust fund is to achieve both capital and income growth within the scope of Shariah. Hence, the investment strategy will also need to be aligned with the objective of a Shariah-compliant unit trust fund.

As for the structure, a Shariah-compliant unit trust fund can be structured by applying various Shariah contracts such as Mudharabah, Wakalah Bil Istithmar, Wadiah and so on. In Malaysian context, the core contracts utilised in the process of structuring a Shariah-compliant unit trust fund are contracts of intermediation such as Wakalah or Mudharabah, which allow one party to act as an agent (manager) on behalf of a principal (capital owner) for an agreed fee or profit-sharing arrangement.

As for the operations and management of a Shariah-compliant unit trust fund, the manager ensures that the excess funds, such as liquid assets and cash, are invested/placed in Islamic money market instruments and as deposit with Islamic licensed financial institutions. All daily operations of a Shariah-compliant unit trust fund must comply with all the Shariah requirements of the Securities Commission and other relevant competent Shariah authorities. To ensure that the funds are managed and administered in accordance with Shariah requirements, unit trust management companies managing Shariah-compliant unit trust funds are required by the SC Guidelines to appoint a Shariah committee / Shariah adviser. The main function of the Shariah committee / Shariah adviser is to supervise and provide necessary advice to ensure that a Shariah-compliant unit trust fund offered to the public is managed and administered in accordance with Shariah requirements.

A Shariah-compliant unit trust fund’s trust deed and prospectus are drafted in accordance with Shariah requirements. Terminologies used in conventional trust deed and prospectus, which are not in compliance with the Shariah, such as interest-based instruments and interest income are avoided.

The investments of a Shariah-compliant unit trust fund include only instruments permitted by the Shariah such as Shariah-compliant equities and Shariah-compliant equity-related securities (such as Shariah-compliant warrants and options), sukuk, Islamic derivative products, Islamic structured products and Shariah-compliant deposit placements.

A Shariah-compliant unit trust fund is designed to provide investors with investment alternatives that comply with Shariah requirements. The investments exclude instruments deemed not permissible by the Shariah like all types of loan stocks, Shariah non-compliant securities, conventional interest paying bonds, interest bearing instruments and conventional futures and derivatives products.


TREATMENT FOR DISPOSAL OF SHARIAH NON-COMPLIANT SECURITIES FOR THE FUND

The SACSC advises on the timing for the disposal of securities in the Fund which have been classified as Shariah non-compliant:

● “Shariah-Compliant Securities” Which Are Subsequently Reclassified As “Shariah Non-Compliant” These refer to those securities which were earlier classified as Shariah-compliant securities but due to certain reasons, such as changes in the companies’ business operations and financial positions, are subsequently reclassified as Shariah non-compliant. In this regard, if on the date this updated list takes effect, the value of the securities held exceeds the original investment cost, the Fund which holds such Shariah non-compliant securities must liquidate them. To determine the timeframe to liquidate such securities, the Shariah adviser advises that such securities should be disposed of within one (1) month. Any capital gain arising from the disposal of the said Shariah non-compliant securities made with respect to the closing price on the announcement day can be kept by the Fund. However, any excess capital gain 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 channeled to charitable bodies1. The Shariah adviser advises that this cleansing process should be carried out within two (2) months from the above disposal date. 1 For this Fund, the gain must be channeled to charitable bodies as advised by the Shariah adviser of the Fund.

On the other hand, the Fund is allowed to hold investment in the Shariah non-compliant securities if the market price of the said securities is below the original investment cost. It is also permissible for the Fund to keep the dividends received during the holding period until such time when the total amount of dividends received and the market value of the Shariah non-compliant securities held equal the investment cost. At this stage, the Fund is to dispose of the holding within one (1) month.

In addition, during the holding period, the Fund is allowed to subscribe to:

(a) any issue of new securities by a company whose Shariah non-compliant securities are held by the Fund e.g. rights issues, bonus issues, special issues and warrants [excluding securities whose nature is Shariah non-compliant e.g. irredeemable convertible unsecured loan stock (ICULS)]; and

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

on the condition that the Fund expedites the disposal of the Shariah non-compliant securities. For securities of other companies [as stated in (b) above], they must be Shariah-compliant securities.

● Shariah Non-Compliant Securities According to the SACSC, since the Fund invests based on Shariah principles, the Fund is to dispose any Shariah non-compliant securities which the Fund presently holds, within a month of knowing 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 channeled to charitable bodies. The Fund has a right to retain only the original investment cost.

CLEANSING/PURIFICATION PROCESS OF THE FUND

● Cleansing Process For The Fund

▪ Wrong Investment This refers to the Shariah non-compliant investment made by the Manager. The said investment will be disposed of / withdrawn with immediate effect. In the event, the disposal/withdrawal of the investment resulted in gain (through capital gain and/or dividend), the gain is to be channeled to baitulmal or any other charitable bodies as advised by the Shariah adviser. If the disposal/withdrawal of the investment resulted in losses to the Fund, the losses are to be borne by the Manager.

All costs incurred during the acquisition and disposal process, whether the investment has resulted in gain or losses, are to be borne by the Manager.


▪ Reclassification Of Shariah Status Of Investments For The Fund A security may be reclassified as Shariah non-compliant in the periodic review of the securities by the SACSC or any other relevant Islamic Shariah competent authorities such as the Dow Jones Islamic Index Shariah Supervisory Board. If the value of such Shariah non-compliant investment exceeds the original investment cost, such securities should be disposed as soon as practicable, which in any event such disposal should be done within one (1) month after the announcement day or receipt of such notice.

If the Shariah non-compliant investment is below the original investment cost, such securities is allowed to be kept until the total amount of dividends received and/or the market value/price equal the original investment costs. When the value of Shariah non-compliant investment equals the original investment cost, such securities should be disposed as soon as practicable, which in any event such disposal should be within one (1) month.

Any capital gains arising from the disposal of the Shariah non-compliant security made at the time of the announcement can be kept by the Fund. 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 is to be channelled to baitulmal or any charitable bodies within two (2) months from the disposal date as advised by the Shariah adviser.

● Purification Process For The Fund

▪ Zakat For The Shariah-Compliant Fund The Fund does not pay zakat on behalf of Muslim individuals and Islamic legal entities who are investors of the Fund. Thus, investors of the Fund are advised to pay zakat on their own.

For more information on the Shariah Investment Guidelines adopted by BIMB Securities Sdn Bhd (BSSB), kindly refer to pages 47 to 49.

17 More Information About The Pacific Dynamic Global Islamic Fund

MORE INFORMATION ABOUT THE PACIFIC DYNAMIC GLOBAL ISLAMIC FUND

INVESTMENT OBJECTIVE The Fund aims to provide capital growth and income∆ in the medium to long term by investing in a global portfolio of Shariah-compliant equities, sukuk and Islamic money market instruments.

Any material change to the Fund's investment objective would require unitholders' approval. ∆ Income is in reference to the Fund’s distribution, which could be in the form of cash or unit. Please refer to


POTENTIAL BENEFITS By investing in this Fund, you will be able to reap the following benefits: • An actively managed Shariah-compliant portfolio; • Access to Shariah-compliant securities available in local and overseas markets; and • Potential for capital growth and income.

INVESTMENT POLICY AND STRATEGY In achieving the Fund’s investment objective, the Manager invests the Fund’s assets in the following investments that are available locally and overseas:

A. Equity asset class: • Shariah-compliant equities and equity-related securities. For this Fund, equity-related securities comprise

only warrants and rights that are issued in relation to equities in which the Fund has invested; • Shariah-compliant collective investment schemes (CIS) whose underlying investments are equities and

equity-related securities; • Shariah-compliant exchange traded funds (ETF) that track an equity index;

B. Fixed income asset class: • Sukuk and Islamic money market instruments; • Shariah-compliant CIS whose underlying investments are sukuk and/or Islamic money market

instruments; and • Islamic deposits.

Dynamic Asset Allocation Depending on expectations for economic and financial market conditions, there may be significant shifts into and out of asset categories via a dynamic asset allocation strategy and, active risk control measures for the Fund.

The dynamic asset allocation means there are no restrictions to the Fund’s percentage holdings in an asset category. The Fund may hold from 0% to 100% in Shariah-compliant equity asset class and 0% to 100% in Shariah-compliant fixed income asset class.

The dynamic asset allocation is to enable the Fund to: • Seek Shariah-compliant equity assets that generate capital and income returns during rising equity markets;

and • Mitigate risk by increasing allocation to Shariah-compliant fixed income assets which generate income and

offer capital safety˄ during declines in values of Shariah-compliant equity assets.

An internal allocation of cash and cash equivalent will be maintained to ensure that the Fund is able to meet redemption requests without jeopardising the Fund’s performance. ˄ Capital safety is in reference to fixed income assets that include Islamic deposits which do not fluctuate in

value and in short-term Islamic money market instruments. The Fund is not a capital guaranteed and capital protected fund.


• Investment Strategy For Equity Assets (Shariah-Compliant Equities, Equity-Related Securities, CIS And ETF) The Fund will invest in Shariah-compliant equities and ETF listed on the Malaysian stock exchange and in overseas stock exchanges. The Fund may also invest in Shariah-compliant CIS which meet the Fund’s objective.

The overseas stock exchanges in which the Fund may invest are in Australia, Belgium, Brazil, Canada, Chile, Denmark, France, Germany, Hong Kong S.A.R, Indonesia, Italy, Japan, Luxembourg, Netherlands, New Zealand, Norway, Philippines, Singapore, South Africa, South Korea, Spain, Sweden, Switzerland, Taiwan, Thailand, UK and US. The Fund may also invest in listed and unlisted securities of other foreign markets not listed above, where the regulatory authority is an ordinary or associate member of the IOSCO.

1. Investment process The Manager is guided by the following principles in managing this segment of the Fund: ▪ Extensive top-down analysis – local and global macroeconomic, social political issues and

sector/industry analysis is undertaken to determine their potential impact on equities. From these analyses, the broad equity allocation is determined followed by allocation to sectors.

▪ Extensive bottom-up analysis – to enable the Manager to identify individual investments suitable for inclusion in the Fund. Please refer to item 2 below (security selection) for the criteria used in this analysis.

▪ Valuations – analyse prices of investments to ensure the Fund does not overpay for what the investments are determined to be worth.

▪ Volatility (i.e. rate at which an equity security moves up or down) of returns.

2. Security selection From the large number of Shariah-compliant equities, ETF and CIS available locally and overseas, the Manager conducts detailed research and applies various filters to identify those investments that are suitable for inclusion as the Fund’s holdings. These filters are: ▪ Financial strength: Companies should produce cash flows that enable funding of their business

operations. Companies must also have strong balance sheets, i.e. hold cash reserves that exceed borrowings or are in a borrowing position where the borrowings can be serviced. This financial strength will enable the companies to withstand any business downturn.

▪ Sustainable competitive advantage: Factors such as having very experienced staff, access to natural resources, possessing strong brands or having patents – which enable a company to generate returns for the medium to long term.

▪ Management team that is experienced and of high calibre: Such a team would have a medium to long-term track record of growing a business and are expected to continue with the track record.

▪ Good corporate governance: Companies that have independent directors and protect the rights of minority shareholders (minority shareholders are those who do not have control of how a company is managed).

▪ For ETF, there is the consideration of how well an ETF’s performance mirror the index performance that it attempts to replicate. Fees charged by the ETF are also taken into consideration.

▪ For CIS, analysis is made of the performance track record of a CIS, the credentials of the manager of the CIS and its investment team and fees charged.

3. Portfolio construction The portfolio construction process involves combining the following: ▪ From the top-down and bottom-up analyses described above, the list of potential investments is

narrowed to one that fits the investment objective of the Fund. ▪ Analysis of valuations of investments is then applied to the list to further reduce it to a selection of

investments that will be included in the Fund. The valuation analysis includes financial tools such as price-to-earnings ratio*, price-to-book ratio**, historic and expected dividend payments to determine value.

* Price-to-earnings ratio: Ratio of the market price of an equity investment compared to its earnings. ** Price-to-book ratio: Ratio of the market price of an equity investment compared to its book value

(book value is the tangible assets of a company less all liabilities). Please also refer to the general risks commencing on page 11 and the section on the Fund’s permitted investments on page 20.


• Investment Strategy For Fixed Income Assets (Sukuk, Shariah-Compliant CIS, Islamic Money Market Instruments And Islamic Deposits) The Fund will invest in Malaysian Shariah-compliant fixed income investments that are available either by direct market purchases or indirectly via CIS. Any exposure to Shariah-compliant foreign fixed income investments will be made via Shariah-compliant CIS.

1. Investment process The Manager is guided by the following principles in managing this segment of the Fund: ▪ Extensive top-down analysis – Analysis is made of local and global macroeconomic conditions,

interest/profit rates expectations, currency and sector analysis to determine their impact on values of fixed income investments, in particular on sukuk. From these analyses, the Manager will set the allocation level of fixed income investments for the Fund, determine the duration and desired yield.

▪ Extensive bottom-up analysis – To enable the Manager to identify individual investments suitable for inclusion in the Fund. Please refer to item 2 below (security selection) for the criteria used in this analysis.

▪ Risk management by investing in a diverse portfolio of sukuk and Islamic money market instruments.

2. Security selection The Manager analyses the following factors to determine investment selection for the Fund: ▪ Credit quality: Indicates the capacity of a company issuing sukuk to meet repayment of the sukuk

and/or profits from the sukuk when they mature. Selection of sukuk focuses on business and financial risk at the issuer level. For inclusion in the Fund, a local sukuk issue must have at least a long-term rating of A2 by RAM Ratings or AID by MARC. The minimum short-term rating must be P2 by RAM Ratings or MARC-2ID by MARC. Any exposure to foreign sukuk will be via Shariah-compliant CIS – and the underlying investments of the CIS must be at least 80% invested in investment grade sukuk, i.e. rated as BBB and above by Standard & Poor’s or an equivalent rating by other international credit rating agencies (i.e. Fitch or Moody’s).

▪ Yield spread analysis: Yield spread is the difference in the rate of return between different sukuk usually of different credit quality. By tracking how particular patterns vary over time, the spread analysis provides an indication of the relative pricing of sukuk.

▪ Liquidity and marketability of sukuk: Liquidity and maturity profiling allows the Manager to determine the extent of liquidity risk and its commensurate returns. Liquidity risk is greater for thinly traded securities such as lower rated sukuk, sukuk that were part of a small issue or sukuk sold by an infrequent issuer.

▪ Analysis of sukuk issues: The analysis is to identify specific/unique risk with regards to the structure of sukuk by analysing sukuk agreements, terms and conditions of a sukuk issue and asset collateral (assets used in backing a sukuk issue).

3. Portfolio construction The portfolio construction process involves taking into account both the top-down and bottom-up analyses described above to construct a diversified portfolio focusing on credit quality, valuations and liquidity and marketability of the fixed income instruments.

Note: Interest rates are a general indicator that will have an impact on the management of a fund regardless of whether it is a Shariah-compliant fund or otherwise. It does not in any way suggest that this Fund will invest in conventional financial instruments. All the investments carried out for this Fund are in accordance with requirements of the Shariah.

Performance Benchmark The benchmark for the Fund is a composite of 50% in Dow Jones Islamic Market World Index (DJIM) and 50% in 3-Month Islamic Interbank Money Market (IIMM) Rate. The composite benchmark is reflective of the medium to long-term local and global asset (equity and fixed income) allocation of the Fund. The DJIM index is available from Bloomberg’s website, www.bloomberg.com. The IIMM rate is widely used by investment managers and publicly available from Bank Negara Malaysia’s website, iimm.bnm.gov.my. These data will also be published as a comparison against the Fund’s total return at least on a monthly basis in our publications and website, a year after the Fund’s inception. For the Fund’s composite benchmark data up to a year from the Fund’s inception, investors may request for data from the Manager.

The risk profile of the Fund is different from the risk profile of the benchmark.


PERMITTED INVESTMENTS Where permitted by the relevant authorities and consistent with the objective of the Fund, the Pacific Dynamic Global Islamic Fund is permitted to invest in the following permitted investments: • Foreign Shariah-compliant securities and Shariah-compliant equity-related securities (as approved by the

respective advisory council / Shariah adviser) traded in foreign markets under the rules of an eligible market and subject to the limit as may be permitted for investment by the relevant authorities from time to time;

• Shariah-compliant securities and Shariah-compliant equity-related securities listed on the Bursa Malaysia and any other market considered as an eligible market;

• Shariah-compliant securities issued by government and government-related agencies including Bank Negara Malaysia negotiable notes, government investment issues and any other government Islamic papers;

• Malaysian currency balances in hand, Malaysian currency placed with Islamic licensed financial institutions including Islamic negotiable instruments, Islamic accepted bills and placement of money at call with Islamic licensed financial institutions and any other Shariah-compliant instrument capable of being converted into cash within such time pursuant to the requirement under the relevant laws;

• Cagamas Islamic sukuk, unlisted sukuk that are either bank guaranteed or rated by RAM Holdings Berhad, Malaysian Rating Corporation Berhad or any other permitted rating agency;

• Units of other Shariah-compliant collective investment schemes that contribute to or meet the Fund’s objective; and

• Any other form of Shariah-compliant investments as may be agreed upon by the Manager and Trustee from time to time and permitted by the relevant authorities.

INVESTMENT RESTRICTIONS AND LIMITS The purchase of investments shall be subject to the following restrictions:

Spread Of Investments On Single Issuer • The value of the Fund's investments in the Shariah-compliant ordinary shares issued by any single issuer

must not exceed 10% of the Fund’s NAV or any other limit set by the Securities Commission; • The value of the Fund's investments in transferable Shariah-compliant securities and the Islamic money

market instruments issued by any single issuer must not exceed 15% of the Fund’s NAV or any other limit set by the Securities Commission; and

• The aggregate value of the Fund’s investments in transferable Shariah-compliant securities, Islamic money market instruments and Islamic deposits issued by or placed with (as the case may be) any single issuer / institution must not exceed 25% of the Fund’s NAV or any other limit set by the Securities Commission.

Exposure Limits The value of the Fund’s investments in unlisted Shariah-compliant securities must not exceed 10% of the Fund’s NAV or any other limit set by the Securities Commission. However, this exposure limit does not apply to “Shariah-compliant unlisted securities” that are: • Shariah-compliant equities not listed or quoted on a stock exchange but have been approved by the relevant

regulatory authority for such listing and quotation, and are offered directly to the Fund by the issuer; and • Sukuk traded on an organised OTC market.

Spread Of Investments On Groups Of Companies The value of the Fund's investments in transferable Shariah-compliant securities and the Islamic money market instruments issued by any group of companies must not exceed 20% of the Fund’s NAV or any other limit set by the Securities Commission.


Concentration Of Investments • The Fund's investments in transferable Shariah-compliant securities (other than sukuk) must not exceed 10%

of the Shariah-compliant security issued by any single issuer or any other limit set by the Securities Commission;

• The Fund’s investment in any class of sukuk of any single issuer must not exceed 20% of the sukuk issued by any single issuer or any other limit set by the Securities Commission; and

• The Fund’s investments in Islamic money market instruments must not exceed 10% of the instruments issued by any single issuer or any other limit set by the Securities Commission. This limitation will not apply to Islamic money market instruments that do not have a pre-determined issue size.

Shariah-Compliant Collective Investment Schemes • The Fund will only invest in other Shariah-compliant collective investment schemes in accordance with the

provisions and limits set by the Securities Commission; • The value of the Fund’s investments in units/shares of any Shariah-compliant collective investment schemes

must not exceed 20% of the Fund’s NAV or any other limit set by the Securities Commission; and • 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 or any other limit set by the Securities Commission.

Placement Of Islamic Deposits The value of the Fund’s placement in Islamic deposits with any single licensed financial institution must not exceed 20% of the Fund’s NAV or any other limit set by the Securities Commission.

The investment restrictions and limits must be complied with at all times based on the current value of the Fund's investments. However, the limits above may be breached by up to a maximum of 5% above the restrictions where the restriction is breached through a rise or fall of the NAV of the Fund (which could be due to fluctuations in value of the Fund’s investments, or from redemption of units or payments made out of the Fund). No additional investments may be made in the category of investment where the investment limit has been exceeded and the Manager will take all necessary steps and actions to rectify the breach within three months from the date of the breach. The limits and restrictions stated above do not apply to securities/instruments issued or guaranteed by the Malaysian government or Bank Negara Malaysia.

The Fund may source for Shariah-compliant financing from Islamic licensed financial institutions for the purpose of meeting redemption requests for units and lending of securities based on Islamic contract as permitted by the SC Guidelines or other relevant laws.

Note: Transferable Shariah-compliant securities refer to Shariah-compliant equities and equity-related securities, and sukuk.


RISK MANAGEMENT STRATEGIES AND TECHNIQUES Our risk management strategy is to conduct fundamental analysis of economic, financial and socio-political factors, both locally and globally, to ascertain the potential risk-reward of different asset classes. Individual stocks and fixed income investments are further screened by detailed analysis of each security and its underlying business and fundamentals. For this Fund, procedures will be made to ensure that all investments are fully in compliance with Shariah requirements.

The Fund’s portfolio risk is mitigated by diversifying across asset categories and industries/sectors. Percentage holdings in different asset categories are actively monitored and these percentages are raised or reduced from time to time depending on the risk-reward potential for each investment. This would include reallocation between asset classes to mitigate risk from expected declines in an asset class. Specific risk management strategies for the risks that the Fund is subject to can also be found on pages 11 to 13.

The Fund will be guided by the following general principles to control company specific risk*: • Ensure that the risk taken for any specific security is not too large1 and a reasonable spread of active risk2 is

maintained across different sectors. Investments which have low contributions3 to active risk will have larger position limits than investments which have high contributions4 to active risk. The limit per security will be within the limit set by the Investment Committee in compliance with the SC Guidelines; and

• Ensure that the risk associated with the overall position taken for the group of companies is not too large1 and within the limit set by the Securities Commission.

Notes: 1. Not too large: Each security is limited to a maximum of 10% of NAV. For investments in securities issued by a

group of companies, the limit is 20% of NAV. 2. Reasonable spread of active risk: The Manager employs active risk to outperform the Fund’s benchmark –

where active risk is the strategy to hold stocks in the Fund not in the same percentage as the benchmark’s (i.e. the equity component of the benchmark) holdings per stock. A reasonable spread, i.e. 20 to 30 securities, is an appropriate number to achieve the desired outperformance.

3. Low contributions: Securities whose prices fluctuate less than the relevant benchmark – i.e. lower risk, lower return potential.

4. High contributions: Securities whose prices fluctuate more than the relevant benchmark – i.e. higher risk, higher return potential.

In addition, the following investment procedures and internal controls are designed to control operational risk** for the Fund: • There is strict division of duties between securities trading, confirmation, settlement and valuation; • There are rules on trading and preventing employees to act on insider information. The Legal, Risk &

Compliance Department will monitor compliance and enforce disciplinary actions on any employee who has breached the code of conduct and compliance manual;

• There is daily computation of the Fund’s NAV and independent verification and reconciliation; • There are procedures for senior management, Trustee, Investment Committee and the Board of Directors to

be informed promptly, to investigate and to ensure timely and appropriate rectification of any deviation and non-compliance that may arise;

• There are limits to the placement maintained at Islamic licensed financial institutions to manage credit risk exposure;

• There are limits on shares traded with stock brokers to manage settlement risk exposure; and • There are limits and criteria set on credit rating of sukuk and Islamic money market instruments.

* Company specific risk refers to external risk associated with the listed company’s share price movements. ** Operational risk refers to the risk associated with inadequate systems and controls.

Specific Risk Management For Foreign Investments • Country and/or foreign securities risks and currency risk – Diversification of the foreign portion of the

portfolio in different countries/markets and currencies reduces potential losses to the Fund from a downtrend in any particular market or currency. Risk management is further enhanced through the implementation of monitoring processes to identify potential changes in valuation of investments due to changes in market, political and/or regulatory environment of the countries in which the Fund has invested in.

• Operational risk – Operational risk arising from international settlement and custody risks are managed through the appointment of an international global custodian.


FREQUENCY OF TRADING The Fund may engage in trading activities when opportunities arise. Opportunities would include but are not limited to arbitrage situations, discrepancies in valuation, expected liquidity surges and thematic plays. Where trading activities in the Fund results in an annualised portfolio turnover that exceeds 2.0 times at the end of every month, the Manager will be required to provide justification to the Fund’s Investment Committee.

BASES OF VALUATION OF INVESTMENTS Pursuant to the SC Guidelines, all assets of the Fund should be valued in a fair and accurate manner at all times. The Fund is generally valued in accordance with its respective asset classes: • Listed Shariah-compliant securities and equity-related securities will be valued based on the last done prices

as at the close of the business day of the respective stock exchanges on the same calendar day. Please refer to page 26 for details on the valuation of NAV. However, if a valuation based on the market price does not represent the fair value of Shariah-compliant securities or equity-related securities, or no market price is available due to situations beyond the Manager’s control or there is a suspension in the quotation of the Shariah-compliant securities for a period exceeding 14 days, or such other shorter period as agreed by the Trustee, then the Shariah-compliant securities shall be valued at fair value, as determined by the Manager, based on the methods approved by the Trustee after appropriate technical consultation;

• Unlisted sukuk will be valued on a daily basis based on fair value prices quoted by a bond pricing agency (BPA) registered with the Securities Commission. If the Manager is of the view that the price quoted by the BPA for a specific sukuk differs from the market price by more than 20 basis points, the Manager may use the market price provided that the Manager adheres to the requirements as stipulated in the SC Guidelines;

• In terms of a successful subscription to an Initial Public Offering (IPO), if any, the IPO securities will be valued at cost prior to their listing. These IPO securities will then be valued at their last done market price upon listing;

• Unlisted Shariah-compliant collective investment schemes will be valued based on the last published repurchase price; and

• Islamic liquid assets (current account or deposits) or Islamic investment accounts placed with Islamic licensed financial institutions are valued on a daily basis by reference to their nominal values and the accrued profit thereon.

24 Fees, Charges And Expenses

FEES, CHARGES AND EXPENSES

SALES CHARGE The sales charge is a fee levied on the purchase of units of the Fund, and is used to pay for marketing, advertising and distribution expenses of the Fund. The sales charge is deducted upfront from the purchase amount, leaving only the net amount invested in the Fund. The sales charge is calculated based on the NAV per unit of the Fund as at the next valuation point after the original application is received and accepted by the cut-off time of 4.00 p.m. on any business day. The following table outlines the maximum sales charge to be imposed by us and our authorised distributors:

Current Fund

Maximum Rate Of Sales Charge* To Be Imposed By Pacific Mutual And Its Authorised Distributors

(Please refer to pages 58 and 59)

Pacific Mutual Unit Trust Consultants IUTA**

Normal Sales Charge Fund: Pacific Dynamic Global Islamic Fund

5.50% of the Fund’s NAV per

unit


unit


unit

Despite the maximum sales charge disclosed here, investors may negotiate for a lower sales charge.

* Pacific Mutual’s sales charges are classified as follows: (1) normal sales charge 5.50%, (2) reduced sales charge 5.00%, (3) low sales charge 2.00% and (4) zero sales charge. As the Fund has a maximum sales charge of 5.50%, it is categorised as a normal sales charge fund.

** Our IUTA may not carry the complete range of Pacific Mutual’s Funds. Investments made via our IUTA may be subject to different terms and conditions of the respective IUTA, including those for switching between Funds.

For illustration on the calculation of sales charges, please refer to pages 27 and 28.

The following are our special group of investors: • Staff and immediate family members of Pacific Mutual and Lion Global Investors Limited may purchase units

of the Fund at the Fund’s NAV per unit, without having to pay the sales charge. • When investing directly with us, investors of our Saver’s Plan package will enjoy a 0.25 percentage point

lower sales charge from the normal sales charge imposed by us for each future monthly instalment with effect from the 25th monthly instalment.

The sales charge quoted is subject to any applicable taxes (including but not limited to GST) and/or duties as may be imposed by the government or other authorities from time to time.

REDEMPTION CHARGE There is no redemption charge imposed on unitholders of the Fund.

ANNUAL MANAGEMENT FEE The annual management fee is a fee charged for the ongoing portfolio management and administration of the Fund (e.g. to maintain unitholders' register, proper records of the Fund and to administer the investments). The annual management fee for the Fund is 1.50% per annum of the NAV of the Fund. The annual management fee is calculated based on the NAV of the Fund, accrued on a daily basis and is paid out of the Fund. The annual management fee is payable on a monthly basis.

The annual management fee quoted is subject to any applicable taxes (including but not limited to GST) and/or duties as may be imposed by the government or other authorities from time to time.

ANNUAL TRUSTEE FEE The annual trustee fee is a fee paid to the Trustee for the custodial management and administration of the Fund's assets (e.g. transaction settlement, custody and administration costs). The annual trustee fee for the Fund is 0.06% per annum of the NAV of the Fund (excluding foreign custodian fees and charges). The annual trustee fee is calculated based on the NAV of the Fund at the Fund's annual trustee fee rate, calculated and accrued on a daily basis and is paid out of the Fund. The annual trustee fee is payable on a monthly basis.

The annual trustee fee quoted is subject to any applicable taxes (including but not limited to GST) and/or duties as may be imposed by the government or other authorities from time to time.

25 Fees, Charges And Expenses

SWITCHING FEE If you wish to switch into other Funds, you will have to pay the applicable differences in sales charge between the Funds to be switched from and the Funds to be switched into. There will be no sales charge imposed if the Funds to be switched into has a lower sales charge.

Our IUTA may not carry the complete range of Pacific Mutual’s Funds. Investments made via our IUTA may be subject to different terms and conditions of the respective IUTA, including those for switching between Funds.

Please refer to page 29 for the terms and conditions of the switching facility of the Fund.

The switching fee is subject to any applicable taxes (including but not limited to GST) and/or duties as may be imposed by the government or other authorities from time to time.

TRANSFER FEE There is no transfer fee imposed on unitholders of the Fund.

EXPENSES Expenses directly related to the Fund are management fee, trustee fee and other administrative expenses (e.g. commission paid to brokers, auditor's fee, courier and handling charges, etc).

The total annual expenses of the Fund are expressed as a percentage of the average NAV of the Fund for a financial year/period calculated on a daily basis.

Other expenses, which are directly related and necessary to the business of the Fund, may be charged to the Fund. These will include (but are not limited to) the following: • Commission or fees paid to brokers or dealers; • fees and other expenses properly incurred by the auditor and tax agent; • Foreign custodian fees; • taxes (including but not limited to GST) and other duties charged on the Fund by the government and other

authorities; • printing and postage expenses; and • any other legitimate administration expenses or relevant professional fees approved by the Trustee.

REBATES AND SOFT COMMISSIONS We will retain the soft commissions received from brokers for goods and services which are of demonstrable benefit to the unitholders and advisory services that assist in the decision-making process relating to the investment of the Fund such as research materials, data and quotation services, computer software, investment advisory services and investment related publications which are incidental to the investment management activities of the Fund.

There are fees and charges involved and investors are advised to consider them before investing in the Fund. All fees and charges payable to the Manager and/or the Trustee are

subject to any applicable taxes (including but not limited to GST) and/or duties as may be imposed by the government or other authorities from time to time. All fees, charges and expenses are

rounded to two decimal places.

26 Transaction Information

TRANSACTION INFORMATION

Our IUTA may not carry the complete range of Pacific Mutual’s Funds. Investments made via our IUTA may be subject to different terms and conditions of the respective IUTA, including those for switching between Funds.

PRICING CALCULATION The buying and selling price of units is quoted based on a single price i.e. the NAV per unit of the Fund. All other transactions charges, if any, will be expressed separately from the price of a unit.

Valuation Of NAV The valuation of NAV for the Fund will be conducted on each business day after the close of respective foreign stock exchanges on the same calendar day. Due to the different time zone of the foreign stock exchanges, the valuation point will be extended to 5.00 p.m. on the following business day. The daily unit price of the Fund will be published on the next business day after the valuation (T+2).

Valuation Of Units Valuation of units is based on the NAV of the Fund and is calculated at the end of every business day. The NAV per unit of the Fund is determined by dividing the Fund’s assets less its liabilities by the number of units in circulation. After the offer period, the price of a unit of the Fund is calculated based on the NAV per unit of the Fund as at the next valuation point after we receive the original application ("forward pricing"). The NAV per unit may be rounded to four decimal places. An incorrect valuation and/or pricing of the Fund shall be considered of minimal significance if the error involves a discrepancy of less than 0.5% of the NAV per unit of the Fund. Any pricing discrepancy of 0.5% or more of the NAV per unit of the Fund will be rectified as stated in the Fund’s deed unless the total impact of the discrepancy on an individual account is less than RM10.00 as the transaction cost may be more than the amount adjusted.

If we receive your duly completed and accepted original application form to purchase/redeem/switch the Fund by the cut-off time of 4.00 p.m. on any business day, the NAV per unit will be calculated based on the NAV per unit at the end of that business day. Any application form (original copy) received after this cut-off time will be considered as being transacted on the next business day and will be subjected to the NAV per unit of the Fund on the next business day.

MINIMUM INITIAL INVESTMENT We offer you a choice of two investment plans namely, Cash Plan and Saver's Plan. These plans have been carefully developed to cater for various types of investors with differing financial objectives. To invest, please complete our account application form and investment form and forward it to any of our offices or our authorised representatives, the details of which can be found on pages 58 and 59.

Fund Cash Plan Saver’s Plan

Pacific Dynamic Global Islamic Fund Lump Sum Cash RM500 minimum investment.

You may fix your own time frame for saving, starting with a minimum of five years. Your initial investment must be two times the monthly investment amount. Monthly investment amount must be in multiples of RM50.

The Manager has the discretion to accept a lower amount than that disclosed in the prospectus as the Manager deems fit. All amounts referred here include the sales charge and GST on sales charge of the Fund. For more explanation on the sales charge, please refer to pages 24, 27 and 28.


MINIMUM ADDITIONAL INVESTMENT If you are already a unitholder of our Fund and wish to purchase additional units, please complete our investment form, indicating your existing unit trust account number. In the event, a new account application form is received by us for the purchase of additional units, we may at our discretion credit the additional units appropriately into your existing account of the Fund. The following are the minimum additional investments for the respective investment schemes:

Fund Cash Plan Saver’s Plan

Pacific Dynamic Global Islamic Fund Lump Sum Cash RM100 minimum investment.

Monthly investment amount must be in multiples of RM50 via a standing instruction with our appointed bank or financial process exchange (FPX) direct debit service.

The Manager has the discretion to accept a lower amount than that disclosed in the prospectus as the Manager deems fit. All amounts referred here include the sales charge and GST on sales charge of the Fund. For more explanation on the sales charge, please refer to pages 24, 28 and belowmentioned.

PURCHASE

The Price Of A Unit

• During Initial Offer Period During the 21-day initial offer period (28 March 2017 to 17 April 2017), the initial offer price per unit is RM0.5000 for the Fund.

Example: NAV per unit RM0.5000

Sales charge 5.50% of NAV per unit

GST on sales charge 6%

If you make a payment of RM10,000, the amount to be invested in the Fund and, the sales charge and GST to be paid by you are calculated as follows:

Total amount invested = RM10,000.00

Total sales charge (5.50%) incurred = RM550.00 (5.50% x RM10,000.00)

6% GST on sales charge = RM33.00

Total amount to be paid by you = RM10,583.00

Units issued to you = RM10,000/RM0.5000 = 20,000 units


• After Initial Offer Period The price of each unit is calculated based on the NAV per unit of the Fund as at the next valuation point after the original application form and payment is received by the Manager ("forward pricing").

Example:

NAV per unit RM0.5027

Sales charge 5.50% of NAV per unit

GST on sales charge 6%

Assuming the NAV per unit on a business day is RM0.5027 and if you make a payment of RM10,000, the amount to be invested in the Fund and, the sales charge and GST to be paid by you are calculated as follows:

Total amount invested = RM10,000.00

Total sales charge (5.50%) incurred = RM550.00 (5.50% x RM10,000.00)

6% GST on sales charge = RM33.00

Total amount to be paid by you = RM10,583.00

Units issued to you = RM10,000.00/RM0.5027 = 19,892.58 units

Note to the example: The above example shows that the sales charge and GST are calculated separately from the amount invested, whereas the sales charge and GST on sales charge imposed by the Fund are deducted upfront from the total amount paid by the investors.

Purchase Of Unit Procedure Your purchase application for units and payment must reach our head office or its branches by 4.00 p.m. on any business day. Any duly completed and accepted original application form and payment received after this cut-off time is considered as being transacted on the next business day. In addition to the submission of the above form, you may be required to forward to us additional documents to authenticate your identification when transacting units of the Fund. We may for any reason at any time, waive existing procedures, and/or prescribe applications for units in any other form or manner whether for all/any particular investor, at our discretion.

REDEMPTION

The Price Of A Unit At NAV per unit.

Redemption Of Unit Procedure Upon receipt of the duly completed and accepted original transaction form, which must reach our head office or our branches by 4.00 p.m. on any business day, we will repurchase the units at the Fund’s NAV per unit calculated at the end of that business day. Payment will be made to you within 10 days.

There is no minimum redemption amount for the Fund. For partial redemption, the balance to be maintained in your unit trust account must not be less than 500 units.

Investors are advised NOT to make payment in cash when purchasing units of the Fund via any IUTA or Unit Trust Consultants.


SWITCHING FACILITY To carry out a switching transaction, all you need to do is complete the transaction form or send a letter of request to our head office or any of our branches by 4.00 p.m. on any business day.

There are no restrictions on the number of switching transactions that you may carry out; however, all switching transactions are subject to the following conditions: • You may switch your investments into all other Funds managed by the Manager except for wholesale Funds; • The Funds that you intend to switch into must have been in existence for at least three months from the

launch dates of those Funds; • The minimum number of units to be switched is 1,000 units and the value of units switched must meet the

minimum investment amount of the switch-in Funds, whichever is higher; • The minimum number of units required to be held in the switch-out Fund is 500 units for a partial switch; and • For the avoidance of doubt, if you have purchased units of the Fund through our IUTA, the switching

transaction is subject to the terms and conditions of the IUTA.

Switching will be carried out at the prevailing NAV per unit of the Fund to be switched from and the Fund to be switched into on a business day, when we receive the switching request by 4.00 p.m. on any business day (subject to availability and terms of the Fund to be switched into).

Should the sales charge of a Fund to be switched into be more than the sales charge imposed on a Fund being switched from, then a difference in the sales charge between the two (2) Funds shall be borne by you. There will be no sales charge imposed if the Funds to be switched into has a lower sales charge.

Subject to the terms set out herein, if you are the primary unitholder for certain Funds, you are entitled to three (3) switching transactions per account during a calendar year without having to pay the applicable differences in sales charges save for the following first switching transaction: • From a zero sales charge fund to a low/reduced/normal sales charge fund; or • From a low sales charge fund to a reduced/normal sales charge fund.

You will have to pay the applicable differences in the sales charge (if any) for subsequent switching transactions carried out in the same calendar year.

You are not entitled to any refund for the sales charge paid on a Fund being switched from, which exceeds that imposed on a Fund to be switched into.

TRANSFER The transfer form must be completed in the presence of a witness. For partial transfer, the minimum balance to be maintained in your unit trust account must be 500 units or such sum as decided by the Trustee and the Manager from time to time.

COOLING-OFF PERIOD If you are a first-time investor of Pacific Mutual, you are given a cooling-off period of six business days. Within these six business days from the date we receive your application, you have the right to call for withdrawal of investment. However, this is not applicable to: • Corporate investors / institutional investors; • Staff of Pacific Mutual and Lion Global Investors Limited and their immediate family members; and • Persons registered with a body approved by the Securities Commission to deal in unit trusts.

The refund for every unit with regards to the cooling-off is the sum of: • the NAV per unit on the day the units were purchased; and • sales charge and GST on sales charge per unit originally imposed on the day the units were purchased.

Essentially, you will receive a full refund of the initial investment paid by you within 10 days of receipt of the original notice of cooling-off by Pacific Mutual.


DISTRIBUTION POLICY AND REINVESTMENT POLICY

Fund Distribution Policy

Pacific Dynamic Global Islamic Fund Subject to the availability of income, distribution of income will be made once a year.

Distribution of income is in the form of cash. When there are stock market corrections, bear markets or economic downturns, realised capital losses may outweigh realised gains, dividends and profit sharing income received and thus result in no income distributions being possible.

You may opt for income distributions to be paid out to you directly in cash by way of a distribution cheque. In the absence of written instructions to the contrary, distributions declared by the Fund will be automatically reinvested into additional units of the Fund based on the NAV per unit of the Fund on the fourth business day after the declaration of distributions at no cost.

Distribution amounting to less than or equal to the amount of RM200 will be automatically reinvested on the fourth business day. Similarly, distribution cheques that are returned through mail will be reinvested based on the Fund’s NAV per unit on the date Pacific Mutual receives the returned mail.

UNCLAIMED MONEYS For any distribution cheques which are left uncashed upon lapse of the six-month cheque validity period, we shall reinvest the distribution into additional units of the Fund on your behalf, based on the Fund’s NAV per unit on the said expiry date.

For other cases, the unpresented cheques will be deemed as unclaimed moneys and shall be dealt in accordance with the Unclaimed Moneys Act 1965.


KEEPING ABREAST OF DEVELOPMENTS IN THE FUND You can have immediate access to the daily NAV per unit of the Fund which are published in newspapers and our website www.pacificmutual.com.my, or contact any of our client relations personnel at 03-7725 9877 / 03-7726 6332 or our authorised distributors (please refer to pages 58 and 59 for the list of authorised distributors), or e-mail [email protected]. While it is our duty to ensure the Fund is being correctly valued or priced, we, however, cannot be held liable for any error in prices published in the newspapers and the websites of our authorised distributors.

In addition, you can also constantly keep abreast of the Fund’s developments via its reports. Our Fund’s performance and other information will also be featured in our website www.pacificmutual.com.my. You are advised to keep abreast of the developments in the Fund.

CUSTOMER SERVICE We are committed to maintaining the highest standards of dedicated customer service. You may call our client relations personnel for more information on your investments in our Fund. Customer Care Hotline: 03-7726 6332 General Line: 03-7725 9877 Facsimile: 03-7725 9860 E-mail: [email protected] Website: www.pacificmutual.com.my

For information on the unit trust industry, you may also contact the Federation Of Investment Managers Malaysia (FiMM) at 03-2093 2600 or log on to their website at www.fimm.com.my for information.

32 Salient Terms Of The Deed

SALIENT TERMS OF THE DEED

YOUR RIGHTS AS A UNITHOLDER Your units in a Fund give you an equal interest in the Fund as a whole. Under the deed, each unitholder will receive a sum proportionate to his or her unitholdings upon termination of the Fund. In a distribution of income, if any, we will recognise unitholders who are registered as at the date a distribution of income is declared. You have the right, amongst others, to the following: • To receive any distribution of income of the Fund, to participate in any increase in capital value of the units

and to all rights and privileges under the Fund's deed; • To exercise the cooling-off right (please refer to page 29); • To receive annual and interim reports; and • To call for a meeting of unitholders (as set out below) and to vote for the removal of the Trustee or the

Manager by way of a special resolution.

You are entitled to attend meetings which the Trustee or the Manager may convene at any time in accordance with the provisions of the deed. Meetings of unitholders may be called in certain circumstances, including approving certain amendments to the deed or winding-up the Fund. The Trustee or the Manager may call a meeting of unitholders, or you can also request the Manager to call for a meeting of unitholders.

YOUR LIABILITIES AS A UNITHOLDER You are not expected to be under any personal obligation to indemnify the Trustee or Manager of the Fund if the liabilities incurred by the Trustee and/or Manager on behalf of the Fund exceed the value of the assets of the Fund. Your liabilities are limited only to the purchase price of your units (at the time of purchase) plus any related charges for the purchase of the units.

The Trustee shall be indemnified out of the Fund against all losses or expenses incurred by the Trustee in performing any of its duties or exercising any of its power under the 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.

YOUR LIMITATIONS AND RESTRICTIONS AS A UNITHOLDER No unitholder shall be entitled to require the transfer to him or her of any of the investments or assets of the Fund or be entitled to interfere with or question the exercise by the Trustee, or the Manager on its behalf, of the rights of the Trustee as the registered owner of such investment and assets.

No unitholder, other than the Manager, shall have any right by reason of his being a unitholder to attend any meeting of shareholders, stockholders or debenture holders or to vote or take part in or consent to any company or action of shareholders, stockholders or debenture holders.

MAXIMUM FEES AND CHARGES The deed provides information on the maximum fees and charges for the Fund payable by the unitholder either directly or indirectly such as annual management fee, annual trustee fee, sales charge and redemption charge.

Please refer to the table below on the maximum fees and charges as disclosed in the deed of the Fund:


MAXIMUM SALES CHARGE

10.00% of the NAV per unit

MAXIMUM REDEMPTION CHARGE

Nil

MAXIMUM RATE OF THE ANNUAL MANAGEMENT FEE

5.00% p.a. of the NAV of the Fund

MAXIMUM RATE OF THE ANNUAL TRUSTEE FEE

0.10% p.a. of the NAV of the Fund, calculated and accrued on a daily basis (excluding foreign custodian fees and charges).

Despite the maximum fees and charges permitted by the deed, all current fees and charges are disclosed in the prospectus. (Please refer to pages 24 and 25).


Procedures For An Increase In The Fees And Charges From The Maximum Rate Provided In The Deed The maximum sales charge, redemption charge, annual management fee or annual trustee fee set out in the deed can only be increased if a meeting of unitholders has been held in accordance with the deed. Thereafter, a supplemental deed proposing a modification to the deed to increase the aforesaid maximum charges and fees is required to be submitted for registration with the Securities Commission accompanied by a resolution of not less than two-third (2/3) of all unitholders present and vote at the meeting of unitholders sanctioning the proposed modification to the deed.

Procedures For An Increase In The Fees And Charges From The Level Disclosed In The Prospectus • Sales Charge And Redemption Charge

The Manager may not charge a sales charge or redemption charge at a rate higher than that disclosed in the prospectus unless: the Manager has notified the Trustee of the higher rate and the date on which such higher rate is to

become effective; a supplementary or replacement prospectus stating the higher rate is issued thereafter; and such time as may be prescribed by the relevant law shall have elapsed since the supplementary or

replacement prospectus is issued. • Annual Management Fee And Annual Trustee Fee

The Manager may not charge an annual management fee or annual trustee fee at a rate higher than that disclosed in the prospectus unless: the Manager has come to an agreement with the Trustee on the higher rate; the Manager has notified the unitholders of the higher rate and the date on which such higher rate is to

become effective; such time as may be prescribed by any relevant law shall have lapsed since the notice is sent; a supplementary or replacement prospectus stating the higher rate is issued thereafter; and such time as may be prescribed by the relevant law shall have elapsed since the supplementary or

replacement prospectus is issued.

PERMITTED EXPENSES PAYABLE OUT OF A FUND’S PROPERTY Only the expenses (or part thereof) which are directly related and necessary to the business of a Fund may be charged to the Fund. These would include (but are not limited to) the following: • commission or fees paid to brokers or dealers; • fees and other expenses properly incurred by the auditor and tax agent; • custodian fees; • taxes and other duties charged on the Fund by the government and other authorities; and • any other legitimate administration expenses or relevant professional fees approved by the Trustee.

REMOVAL, REPLACEMENT AND RETIREMENT OF THE MANAGEMENT COMPANY Subject to the approval of the Securities Commission and the provisions of the deed, we may retire in favour of some other corporation upon giving the Trustee three months' (or such other period as the Manager and the Trustee may agree upon) written notice of our desire to do so.

The Manager may be removed and replaced by the Trustee on the grounds that the Manager: • goes into liquidation (except for the purposes of amalgamation or reconstruction or some other purpose

approved by the relevant authorities); or • has had a receiver appointed; or • has ceased to carry on business; or • is in breach of its obligations under the deed, Capital Markets And Services Act 2007 or the SC Guidelines or

has ceased to be eligible to be a management company under the relevant laws; or • has failed or neglected to carry out its duties to the satisfaction of the Trustee and the Trustee considers that

it would be in the interests of unitholders for it to do so after the Trustee has given notice to the Manager of that opinion and the reasons for that opinion, has considered any representations made by the Manager in respect of that opinion and after consultation with the Securities Commission and with the approval of the unitholders by way of a special resolution.


REMOVAL, REPLACEMENT AND RETIREMENT OF A TRUSTEE A Trustee may retire upon giving three months’ (or such other period as the Manager and the Trustee may agree upon) written notice to the Manager of its desire to do so, and may by deed appoint in its stead a new trustee approved by the Securities Commission. The Trustee may be removed and another trustee may be appointed by special resolution of the unitholders at a meeting of unitholders convened in accordance with the deed or as stipulated in the Capital Markets And Services Act 2007.

We may remove the Trustee or appoint another Trustee by special resolution of the unitholders at a meeting of unitholders convened in accordance with the deed.

We shall take all reasonable steps to replace a Trustee as soon as possible after becoming aware that: • The Trustee has ceased to exist; • The Trustee has not been validly appointed; • The Trustee is not eligible to be appointed or to act as Trustee under any relevant law; • The Trustee has failed or refused to act as Trustee in accordance with the provisions or covenants of the

deed or the provisions of the Capital Markets And Services Act 2007; • A receiver is appointed over the whole or a major part of the assets or undertaking of the Trustee and has

not ceased to act under that appointment, or a petition is presented for the winding-up of the Trustee (other than for the purpose of and followed by a reconstruction, unless during or following such reconstruction the existing Trustee becomes or is declared insolvent); or

• The Trustee is under investigation for conduct that contravenes the Trust Companies Act 1949, the Trustee Act 1949, the Companies Act 1965 or any relevant law.

TERMINATION OF A FUND A Fund may be terminated or wound-up by the Manager or Trustee by way of a special resolution of the unitholders at a meeting of unitholders convened in accordance with the deed, the Capital Markets And Services Act 2007 and the SC Guidelines.

MEETINGS OF UNITHOLDERS Unitholders may apply to the Manager to summon a meeting of unitholders for any purpose including, without limitation, for purposes of: • Requiring the retirement or removal of the Manager; • Requiring the retirement or removal of the Trustee; • Considering the most recent financial statements of a Fund; • Giving to the Trustee such directions as the meeting thinks proper; or • Considering any matter in relation to the deed.

However, the Manager shall not be obliged to summon such a meeting unless direction has been received from not less than fifty (50) or one-tenth (1/10) of all the unitholders and the application has been made in accordance with the provisions of the deed.

35 All About The Manager – Pacific Mutual Fund Bhd

ALL ABOUT THE MANAGER – PACIFIC MUTUAL FUND BHD

OUR SHAREHOLDERS Lion Global Investors Limited (formerly known as Lion Capital Management Limited) owns 70% equity interest in the share capital of Pacific Mutual and Koperasi Angkatan Tentera Malaysia Berhad owns the remaining 30%. Lion Global Investors Limited is a company incorporated in Singapore since 1986, and is a member of the Singapore OCBC Group of Companies. The ultimate holding company of Pacific Mutual is Oversea-Chinese Banking Corporation Limited, a public listed company incorporated in Singapore.

OUR CORE BUSINESS The principal activities of Pacific Mutual are the establishment and management of unit trust funds as well as the management of private investment mandates. We obtained our Capital Markets And Services Licence from the Securities Commission since 21 December 2004. Pacific Mutual was incorporated on 15 March 1995 under the Companies Act 1965 with an authorised and paid-up capital of RM5 million divided into 5 million ordinary shares of RM1.00 each. Pacific Mutual’s registered office is at 19th Floor, Menara OCBC, 18 Jalan Tun Perak, 50050 Kuala Lumpur.

As at 18 January 2016, Pacific Mutual: • managed a total of 21 funds, including eight global funds. The Funds are in the hands of an experienced

Board of Directors and a prudent Investment Committee; • managed RM1.46 billion on behalf of its unit trust investors and private mandate clients; and • had a staff force of 87, comprising 59 management staff and 28 non-management staff.

OUR CORPORATE VISION AND MISSION

• Our Corporate Vision: ▪ To be Malaysia's preferred investment management company.

• Our Corporate Mission: ▪ We will provide investors with the highest return possible at minimal risk by being active, disciplined and

research-driven in our investment management. ▪ We will provide excellent services to satisfy the needs and expectations of our investors and distributors. ▪ We will maintain a high level of professionalism among our staff and agents. ▪ We will promote teamwork, innovation and mutual respect at all levels within the Company.

OUR INVESTMENT PHILOSOPHY Our investment philosophy is aimed at providing investors with maximum returns at an acceptable level of risk by: • Applying an active investment management style that constantly monitors and reviews the market place for

opportunities to invest in. • Being research-driven in our stock selection and disciplined in our asset allocation. • Diversifying our investments to create a well-balanced portfolio. • Adhering to the investment guidelines set by the regulatory authorities and the Investment Committee.

OUR ROLES AND RESPONSIBILITIES The primary functions of Pacific Mutual are: • Investment functions which include:

▪ Conducting investment research. ▪ Determining a fund's investment strategy. ▪ Investing the assets of a fund. ▪ Reviewing a fund's portfolio and investment performance.

• Administrative functions which include: ▪ Maintaining the unitholders' register. ▪ Valuation of portfolio and computation of the daily net asset value of a fund. ▪ Preparing a fund's financial statements, quarterly (applicable to wholesale funds only), interim and annual

reports. ▪ Keeping proper records on unitholders' transactions.


OUR FINANCIAL POSITION Our financial position for the past three financial years is summarised as follows:

Audited Financial Highlights

Year Ended 31 December 2015 RM

2014 RM

2013 RM

Paid-up Share Capital (’000) 5,000 5,000 5,000 Shareholders’ Funds (’000) 28,153 28,094 27,882 Revenue (’000) 19,915 25,177 27,968 Profit Before Taxation (’000) 218 2,192 2,947 Profit After Taxation (’000) 59 1,612 2,559

OUR PEOPLE

Board Of Directors As at 18 January 2016, we have six experienced members on the Board of Directors including two independent Directors with backgrounds in investment, banking, finance and the public sector. The Board of Directors meets on a quarterly basis and is involved in determining the corporate policies and direction of the Company.

Name: Experience/Qualifications:

Gerard Lee How Cheng – Chairman • He was appointed the Chairman of Pacific Mutual on 1 February 2011. He

is currently the Executive Director and Chief Executive Officer of Lion Global Investors Limited (formerly known as Lion Capital Management Limited) (“Lion Global Investors”), a subsidiary of Oversea-Chinese Banking Corporation Limited.

• He was formerly the Chief Executive Officer of Fullerton Fund Management Company Ltd, which is a wholly owned subsidiary of Temasek Holdings Pte Ltd.

• Before joining Temasek Holdings, he held various positions such as the Deputy Chief Investment Officer at Deutsche Asset Management Singapore, Head of Fixed Income Sales at SBC Warburg Singapore and Head of Government of Singapore Investment Corporation Private Limited’s New York office.

• He takes an active interest in the professional development of the Singapore capital market and is currently an adviser to ACI Singapore and CFA® Singapore. He is also active in voluntary work. He serves as the Chairman of Boys’ Town Home and Catholic Junior College. He also sits on the board of St. Gabriel’s Foundation.

• Bachelor of Science (Honours) (National University of Singapore); CFA® charterholder.



James Tan Thian Peng • He was appointed a Director of Pacific Mutual on 11 January 2013. He is

currently the Chief Operating Officer at Lion Global Investors Limited (formerly known as Lion Capital Management Limited) (“Lion Global Investors”), overseeing the operations, finance, risk and investment compliance and regulatory compliance functions. He is also the Director for Lion Global Funds (LGlobal Funds), which are registered in Luxembourg.

• He has 21 years of experience in operations and information technology. • Bachelor of Accountancy (Honours) (National University of Singapore);

Certified Public Accountant, Singapore (Institute of Certified Public Accountants of Singapore).


Dato’ Ahmad Zahudi bin Haji Salleh • He was appointed a Director of Pacific Mutual on 11 January 2013. He is

currently the Chief Executive Officer at the Malaysian Armed Forces Co-operative Limited. He oversees the business performance towards fulfilling its cooperative mandates and social responsibilities by providing leadership, guidance and direction to the company. He is also a director for Wiramaju Sdn Bhd, Citrasama Projek Sdn Bhd and Harper Wira Sdn Bhd.

• He was an officer in the Malaysian Armed Forces from April 1972 to September 2006. He was responsible for the implementation of personnel emolument policies, overseeing payment processes, budgeting and auditing of related accounts.

• Diploma in Accountancy; Bachelor of Accountancy (Honours) (formerly known as Advanced Diploma in Accountancy) (Universiti Teknologi MARA); Post-Graduate Diploma in Defence and Strategic Studies (Malaysian Armed Forces Staff College); Senior International Defense Management Course (Defense Resources Management Institute).



Ong Eu Jin – Independent Director • He was appointed a Director of Pacific Mutual on 11 January 2013.

Currently, he is a partner at Lee Hishammuddin, Allen and Gledhill, overseeing a team that manages financing (including bond issuance and project financing), equity capital markets (including corporate advisory and initial public offerings) and mergers and acquisitions.

• He began his career as a lawyer upon his admission as an advocate and solicitor (West Malaysia) in 1997. In October 2002, he joined OSK Trustees Berhad as the Chief Operating Officer and was subsequently made the Executive Director. As head of the company from 2002 to 2009, he was in charge of the management, operational and business development functions of the company and reported to the Group CEO.

• Bachelor of Laws (University of West London [formerly known as Thames Valley University]); Certificate of Legal Practice; Master in Business Administration (Edinburgh Business School, Herriot-Watt University); Master of Laws (University of Malaya); Master of Laws (University College London); Solicitor of the Senior Courts of England and Wales.


Datuk Lee Say Tshin – Independent Director • He was appointed a Director of Pacific Mutual on 14 November 2014.

Currently, he is an Independent Non-Executive Director and a member of the Audit Committee of IOI Group Properties Bhd, a public listed company listed on the Bursa Malaysia.

• In 1974, he joined HSBC Bank (Malaysia) Berhad as an Executive. He was an accomplished career banker with over 40 years of experience in the banking industry. He held the position of Managing Director, Strategic Business Development for HSBC Bank (Malaysia) Berhad since 2006 and retired on 30 June 2013.

• He was subsequently appointed as Senior Advisor, HSBC Bank (M) Bhd. • Bachelor of Economics (Honours) (University Malaya).


Teh Chi-cheun • He was appointed the Executive Director, Chief Executive Officer and Chief

Investment Officer of Pacific Mutual on 15 July 2015. Teh oversees the overall management and direction of the Company. He is also responsible for the performance of the Funds via the formulation of investment strategies and asset allocation decisions.

• He started his career in the mid 1990s, in corporate finance before moving to the stockbroking industry in both Singapore and Malaysia, and subsequently into investment management. His investment and fund management experience extends globally as he managed developed market funds when he was with the fund management division of a Singapore government owned entity. Additionally, he also managed portfolios while with an investment outfit based in Canada.

• Upon his return to Malaysia in 2006, Teh joined Pacific Mutual as the assistant general manager of the Investment department, and was promoted to the Head of Equities one-and-a-half years later.

• He left Pacific Mutual in 2011 to head the entire stockbroking division of an investment bank. A year later, Teh joined a leading foreign insurance player in Malaysia as the head of investments (director). On 15 July 2015, Teh rejoined Pacific Mutual as its Executive Director, Chief Executive Officer and Chief Investment Officer.

• Bachelor of Science (Honours) in Accounting and Financial Analysis (University of Warwick); CFA® charterholder (CFA Institute).


The Investment Committee Our Investment Committee is responsible for setting and determining the investment policies, guidelines and strategies of the Fund. They meet on a quarterly basis to discuss investment strategies, asset allocation and stock selection as well as to review and monitor portfolio performance against benchmarks and guidelines.

As at 18 January 2016, the following six persons are members of the Investment Committee for the Fund: • Gerard Lee How Cheng, as aforementioned. • James Tan Thian Peng, as aforementioned. • Mej. Jen. (B) Dato’ Paduka Che Hasni bin Che Ahmad, as belowmentioned. • Dato’ Ahmad Zahudi bin Haji Salleh, as aforementioned. • Ong Eu Jin*, as aforementioned. • Datuk Lee Say Tshin*, as aforementioned.

* Independent Investment Committee members


Mej. Jen. (B) Dato’ Paduka Che Hasni bin Che Ahmad • He started his career as an Officer in the Malaysian Armed Forces in 1972

and rose to the rank of Major General and was appointed as the Training Commander of the Malaysian Army in 2010. Prior to the said appointment, he was a Defence Attache in Vietnam from 2002 to 2007 and the Director of Human Resource to The Malaysian Army from 2008 to 2010. His responsibilities included operations, training, logistics, finance, administration and human capital.

• His involvement in Koperasi Angkatan Tentera Malaysia (KAT) started in 2007 when he was appointed to the KAT Board by the Malaysian Army, an appointment he held until November 2010. He was subsequently appointed as the Chairman of KAT in July 2012, and held this position until June 2015.

• He sits in the Harper Wira Board, a subsidiary company of KAT that is involved in international freight and forwarding services and sea transportation portfolios. He sits in the Board of Directors for Great Eastern Takaful Sdn. Bhd. (GETSB), where KAT holds a 30% share. He is also a member of the Risk Board, and the Remuneration and Nomination Committee of GETSB.

• In recognition of his services, the Government of Malaysia had appointed Dato’ Paduka Che Hasni to be one of the members of the Special Commission to Study the Transformation of the Government Civil Service which was announced by His Honourable Prime Minister in July 2012.

• Master of Laws (University of Malaya); Bachelor of Law (formerly known as Advanced Diploma in Law) (Honours) (Universiti Teknologi MARA). He was admitted to the Malaysian Bar Council and accepted as an Advocate and Solicitor by the High Court of Malaya in 1998. Post-Graduate Diploma in Defense and Strategic Studies (Pakistan Command and Staff College [1983] and the Malaysian Armed Forces Defense College [1998]).


Key Management Staff (As At 18 January 2016)

Name: Position: Experience/Qualifications:

Teh Chi-cheun Executive Director, Chief Executive Officer and Chief Investment Officer • As aforementioned.


Koh Huat Soon Deputy Chief Executive Officer • As Deputy Chief Executive Officer, he assists the Chief Executive Officer

to oversee the overall management and direction of the Company. He is also the Head of Business Development and Marketing with effect from 10 October 2015, where his primary responsibility is to lead the department’s product and marketing initiatives; overseeing the development of all distribution channels including the establishment and management of branches and agency offices, client relations, product solutions and performance attribution.

• He started his career with a statutory board in Singapore after which he joined investment banks in Malaysia in 1992, first as an investment analyst and later as a senior analyst. He took on his initial role as an investment manager in 1998 with a local unit trust management company. He joined Pacific Mutual in August 2000 and left in October 2002 to start up and head a new asset management subsidiary of the then PacificMas Group until April 2009. He also took the lead in the business development efforts of the firm. In May 2009, he rejoined Pacific Mutual as the Head of Private Mandates, Investment, after the two entities were merged. In 2011, Huat Soon was appointed the CIO of Pacific Mutual, and later, in July 2015, he was appointed as the Deputy Chief Executive Officer of the Company. He has more than 23 years of experience in the investment industry.

• Bachelor of Arts (Honours) in Engineering Science (Oxford University, England); Master of Business Administration (Melbourne University, Australia); CFA® charterholder (CFA Institute).


Chong Sai Ching Chief Operating Officer • She leads the finance, unit trust operations, investment operations and

information technology functions of the Company, overseeing the financial and taxation affairs of the Company and all the Funds it manages. She drives the business process re-engineering projects, directs internal procedures and controls, appraises and evaluates the results of overall operations across various operating departments.

• She has more than 20 years’ experience in the unit trust industry. • Associate of the Chartered Institute of Management Accountants

(ACMA), UK; Chartered Accountant (Malaysian Institute of Accountants); Chartered Global Management Accountant (CGMA).


Designated Person Responsible For Compliance Matters


Chor Yit Wah Head of Legal, Risk & Compliance • She is responsible for the legal, risk management and compliance matters

of the Company. She started her career as a paralegal with an established law firm in Kuala Lumpur. She joined Pacific Mutual in September 2007 and left in January 2009 to head and manage the legal and compliance department of an asset management company. In May 2010, she rejoined Pacific Mutual and currently heads the Legal, Risk & Compliance department of the Company.

• Bachelor of Laws (Honours) (University of the West of England, Bristol, UK).

Shared Services Under the concept of shared services, our Information Technology (network infrastructure and security administration) and Company Secretariat are centralised at e2 Power Sdn Bhd, a wholly-owned subsidiary of Oversea-Chinese Banking Corporation Limited. Both e2 Power Sdn Bhd and OCBC Capital (Malaysia) Sdn Bhd are sister companies with Oversea-Chinese Banking Corporation Limited.

The shared services provide operating companies under the group, including Pacific Mutual, the benefits of better economies of scale and improved efficiency. Given the greater resources at the group level, the depth and breadth of skills, which could be applied, will far exceed that at the company level. The Company is then freed to be more focused on its core competencies.

Manager’s Delegate Pacific Mutual outsourced the internal audit function to Boardroom Corporate Services (KL) Sdn Bhd (“Boardroom”) since 26 April 2013. Boardroom is a private limited liability company incorporated and domiciled in Malaysia since 13 April 1960. The company is located at Lot 6.05, Level 6, KPMG Tower, 8 First Avenue, Bandar Utama, 47800 Petaling Jaya, Selangor Darul Ehsan. The holding company of Boardroom is Boardroom (Malaysia) Sdn Bhd, a company incorporated in Malaysia. For more information, log on to www.boardroomlimited.com.

http://www.boardroomlimited.com/


Investment Team We take a team approach to the investment process and hold investment meetings on a daily basis. The decision-making process involves input from the entire team, with each team member (inclusive of analysts) contributing their respective expertise and views to yield fully informed conclusions. Our Investment Committee, whose responsibility is to ensure adherence to investment guidelines, both internal and external, as well as to assess strategy and implementation effectiveness, oversees the entire investment function.

The following are the key members of the investment team as at 18 January 2016, and all of them hold the Capital Markets And Services Representative’s Licence issued by the Securities Commission:


Teh Chi-cheun Executive Director, Chief Executive Officer and Chief Investment Officer • As aforementioned. • He is the designated person responsible for the investment management of

the Pacific Dynamic Global Islamic Fund.


Tan Yee Cheng Head of Equities, Investment • She has over 21 years of experience in investment research and fund

management. Prior to joining Pacific Mutual in May 2007 as Senior Manager, Investment, she was an investment manager in an American-based insurance company. She had earlier worked as a senior analyst and a research manager at two local stockbroking firms and headed the investment research of a local unit trust company.

• Master of Science in Economics (University of Idaho, USA); CFA® charterholder (CFA Institute).


Nurrul Huda Shamsuddin Senior Manager, Investment • She has about 19 years' experience in the fund management industry, and

has handled both Shariah and non-Shariah-compliant funds. Prior to joining Pacific Mutual in July 1997, she worked in a unit trust management company as Acting Investment Manager, in charge of portfolio management. She had also earlier worked for several years in the research department of a stockbroking firm.

• Master of Science in Statistics (California State University, Hayward, USA).



Oh Jo Ann Senior Manager, Investment • She is responsible for the daily management of fixed income portfolios and

execution of fixed income transactions. She conducts analysis of individual fixed income securities and selection of those securities for inclusion into the portfolios. Her analysis of the domestic macro backdrop forms the basis for the overall fixed income investment strategy. She started her investment career with Pacific Mutual in January 2003 as an equities analyst before moving on to working full time on the fixed income portfolio in 2004. She has over 12 years of experience in fixed income investment research and fund management and has handled both Shariah and non-Shariah-compliant fixed income portfolios.

• Bachelor of Management (Honours) in Finance (Universiti Sains Malaysia); CFA® charterholder (CFA Institute).


Adeline, Zhou Zheng Manager, Investment • She has over eight years of experience in investment research and

analysis. Prior to joining Pacific Mutual, she started her career as an accountant in a bank in China and later served as an auditor at an international audit firm in Paris, France. In 2006, she moved to Malaysia and started her career as an equity analyst in an asset management company before being promoted to a fund manager in 2011.

• Bachelor’s Degree in International Economics (Wu Han University, China); Bachelor’s Degree in French (Wu Han University, China); Master’s Degree in Management, majoring in Finance (Ecole des Hautes Etudes Commerciales [HEC Paris], France); CFA® charterholder (CFA Institute).


Samsukri Glanville Bin Mohamad Manager, Investment • He has over 16 years of experience in the finance industry, including 13

years in investment. He started his career in the insurance industry in London and later returned to Malaysia to work in the bankruptcy restructuring sector. He later went on to be co-founder and director of a boutique asset management firm in Malaysia. Subsequently, he worked for a local investment bank initiating coverage on the oil and gas sector for the company.

• Bachelor’s Degree in Commerce, majoring in Finance (Otago University, New Zealand); Executive Master of Business Administration (Business School Sao Paulo, Brazil); Master of Business Administration (University of Toronto, Canada); Doctorate in Business Administration (Australian Institute of Business, Australia). Research interests in reflective practice and investment decision making.

MATERIAL LITIGATION AND ARBITRATION As at 18 January 2016, there is no current material litigation and arbitration, including those pending or threatened, and any facts likely to give rise to any proceedings which might materially affect the business or financial position of the Manager or any of its delegates.

44 Trustee Of The Fund, Its Duties And Responsibilities

TRUSTEE OF THE FUND, ITS DUTIES AND RESPONSIBILITIES

The Trustee serves as the custodian of the assets of the Fund and to safeguard the interest of the unitholders. The assets of the Fund are registered in the name of the Trustee who functions independently from Pacific Mutual. The Trustee exercises all due diligence and vigilance when carrying out their functions and duties to safeguard the rights and interests of all unitholders. The Trustee is responsible in ensuring that the Manager performs its responsibilities in accordance with the provisions of the deed.

Below are the details of the Trustee of the Fund:

CIMB ISLAMIC TRUSTEE BERHAD (167913-M)

Name Of Trustee: CIMB Islamic Trustee Berhad (167913-M)

Registered Address: Level 13, Menara CIMB, Jalan Stesen Sentral 2, Kuala Lumpur Sentral, 50470 Kuala Lumpur

Date Of Incorporation: 19 January 1988

Issued / Paid-Up Capital: Authorised capital of RM5,000,000 divided into 500,000 ordinary shares of RM10.00 each

Issued capital is RM2,000,000 divided into 200,000 ordinary shares of RM10.00 each

Paid-up capital is RM1,000,000 divided into 200,000 ordinary shares of RM10.00 each and partly paid up at RM5.00 each

Staff Strength: 19 as at 18 January 2016 (comprising 15 executives and 4 non-executives)

Funds Under Trusteeship: 48 as at 18 January 2016 (including 1 real estate investment trust fund, 22 unit trust funds, 22 wholesale funds and 1 private retirement scheme [consisting of 3 funds])

Board Of Directors: Zahardin Bin Omardin (Non-Executive, Independent Director and Chairman) Mohamad Safri Bin Shahul Hamid (Non-Executive, Non-Independent Director)

Liew Pik Yoong (Executive, Non-Independent Director)

Chief Executive Officer: Liew Pik Yoong

No. Of Years Involved In The 26 Unit Trust Industry As A Trustee:

Financial Highlights

Year Ended 31 December

Unaudited 2015 RM’000

2014 RM’000

2013 RM’000

2012 RM’000

Paid-up Capital 1,000 1,000 1,000 1,000

Shareholders' Fund 5,300 5,018 6,573 6,311

Revenue* 3,549 3,403 2,788 4,000

Profit Before Taxation 970 1,312 370 1,386

Profit After Taxation 381 945 263 993

* Only Shariah-compliant income are recognised since the entity’s conversion to Islamic in 2012.

45 Trustee Of The Fund, Its Duties And Responsibilities

DELEGATION OF SHARE CUSTODIAL FUNCTIONS CIMB Islamic Trustee Berhad has appointed CIMB Islamic Bank Berhad (CIMB Islamic Bank) as the Custodian of the Fund’s assets. CIMB Islamic Bank’s ultimate holding company is CIMB Group Holdings Berhad, a listed company in Bursa Malaysia and currently the second largest financial services provider in Malaysia. CIMB Islamic Bank provides full fledged custodial services, typically clearing, settlement and safekeep all types of investment assets and classes, to a cross section of investors and intermediaries client base, both locally and overseas. For the local Ringgit assets, they are held through its wholly owned nominee subsidiary “CIMB Islamic Nominees (Tempatan) Sdn Bhd”. For foreign non-Ringgit assets, CIMB Islamic Bank appoints global custodian as its agent bank to clear, settle and safekeep on its behalf and to its order.

The appointed global custodians are Citibank N. A., Singapore and BNP Paribas Securities Services, Singapore.

All investments are automatically registered in the name of the custodian or to the order of the Trustee. CIMB Islamic Bank Berhad acts only in accordance with instructions from the Trustee.

MATERIAL LITIGATION AND ARBITRATION

As at 18 January 2016, CIMB Islamic Trustee Berhad is not engaged in any material litigation and arbitration, including those pending or threatened, and is not aware of any facts likely to give rise to any proceedings which might materially affect the business or financial position of CIMB Islamic Trustee Berhad, or any of its delegates.

THE TRUSTEE'S RESPONSIBILITIES The Trustee has agreed willingly to assume all its obligations under the deed and all written laws and SC Guidelines which cover the following: • Take into custody the investments of the Fund and hold the investments in trust for the unitholders. • Ensure that the Manager operates and administers the Fund in accordance with the provisions of the deed,

SC Guidelines and acceptable business practice within the unit trust industry. • As soon as practicable notify the Securities Commission of any irregularity or breach of the provisions of the

deed, SC Guidelines and any other matters which in the Trustee's opinions may indicate that the interests of unitholders are not served.

• Exercise reasonable diligence in carrying out their functions and duties, in actively monitoring the operation and management of the Fund by the Manager to safeguard the interests of unitholders.

• Maintain, or cause the Manager to maintain, proper accounting records and other records as are necessary to enable a complete and accurate view of the Fund to be formed and to ensure that the Fund is operated and managed in accordance with the deed of the Fund, information memorandum, the SC Guidelines and securities law.

• Require that the accounts be audited at least annually.

TRUSTEE'S STATEMENT OF RESPONSIBILITY CIMB Islamic Trustee Berhad is willing to assume the position and all obligations that come with it under the deed, all relevant written laws and rules of laws.

46 Shariah Adviser

SHARIAH ADVISER

The Shariah Adviser for Pacific Dynamic Global Islamic Fund is BIMB Securities Sdn Bhd (BSSB).

Its role, power and duties are as follow: • Ensure that the Fund is managed and administered in accordance with the Shariah principles and to hold

quarterly meetings (maximum of 12 meetings a year) with the Manager in respect of the same or such other matters affecting the Fund. For the Fund’s investment in local securities, to ensure that the investment of the Fund is in accordance with the list of Shariah-compliant securities issued by the SACSC.

• Provide expertise and guidance for the Fund in all matters relating to the Shariah principles, including the Fund’s deed and prospectus, their structures and investments process, and other operational and administrative matters.

• Consult the Securities Commission which may consult the SACSC where there is any ambiguity or uncertainty as to an investment, instrument, system, procedure and/or process.

• Ensure that the Fund complies with any guideline, ruling or decision issued by the Securities Commission from the Shariah aspect.

• Responsible for scrutinising the Fund's compliance report on a monthly basis as provided by the compliance officer and transaction report of the Fund’s property provided by or duly approved by the Trustee to ensure that the Fund's investments are in line with Shariah principles.

• Prepare a report to be included in the Fund's interim and annual reports certifying that the Fund has been managed and administered in accordance with Shariah principles.

• Vet and advise on the promotional materials of the Fund. • Assist and attend to any ad-hoc meeting called by the Securities Commission and/or any other relevant

authority. • The Fund’s investments in foreign securities will be done in accordance with the Dow Jones Islamic Market

Indices and/or the securities classified as Shariah-compliant by the Shariah Adviser. For securities to be screened or reviewed by the Shariah Adviser, the fund manager will first identify the securities which satisfy their investment criteria on the selected foreign markets permitted by the Securities Commission. All the necessary documents with the latest information pertaining to business activities, financial statements and other related information will be submitted to the Shariah Adviser for Shariah stock screening process based on the screening methodology of the SACSC. To ensure strict compliance, if such securities had been accorded the Shariah compliant status by the Shariah Adviser, it will be continuously monitored and updated based on the latest information provided by the fund manager.

MORE ABOUT BSSB BSSB, a stockbroking subsidiary of BIMB Holdings Bhd, was incorporated on 21 February 1994. BSSB was set up to pioneer the development of the Islamic financial system in the capital market. Its mission is to offer facilities and services in the securities industry which are in compliance with Shariah to the Muslims and Non-Muslims in Malaysia and elsewhere. The company strives to enhance its efforts in contributing to the success of the nation’s target to become a regional and international centre of Islamic finance. BSSB has been offering Shariah services to its clients and it was registered with the Securities Commission to act as a Shariah adviser for Shariah-compliant collective investment schemes since 1998. Its current authorised capital is RM250 million, and its issued and paid-up capital is RM100 million. As at 18 January 2016, the company has a staff force of 71, comprising 63 executives and 8 non-executives. There are 22 funds under its Shariah advisory.

Shareholders: BIMB Securities (Holdings) Sdn Bhd 51% (Wholly-owned subsidiary of BIMB Holdings Bhd) BIMB Holdings Bhd 49%

47 Shariah Adviser

Profile Of Designated Shariah Person: Ir. Dr. Muhamad Fuad bin Abdullah (Dr. Muhamad Fuad), the designated person in-charge of all Shariah matters in BIMB Securities Sdn Bhd (BIMBSEC) is also a member of the Shariah Advisory Committee of BIMBSEC effective 1 June 2011. He graduated with a Bachelor of Science Degree in Electrical Engineering in 1977 and a Master of Philosophy Degree in Electrical Engineering in 1982 both from the University of Southampton, England. He also obtained a Bachelor of Arts (Jayyid) Degree in Shariah from the University of Jordan in 1994 and a Doctor of Philosophy in Muslim Civilization from the University of Aberdeen, Scotland in 1996.

Currently, he serves as the Chairman of the Shariah Committee of MIDF Group of Companies and a member of the Group Shariah Committee of MNRB Holdings Bhd. He is a registered Shariah Adviser with the Securities Commission Malaysia (SC) which qualifies him to advise on Shariah-compliant products and services regulated by the SC. He is also a registered Shariah lawyer of Majlis Agama Islam Perak, and an Adjunct Professor of Universiti Teknikal Malaysia Melaka (UTeM).

He sits on the boards of Sime Darby Berhad, Sime Darby Energy Sdn Bhd, Sime Darby Utilities Sdn Bhd, Malaysian Industrial Development Finance Berhad (MIDF), MIDF Property Berhad, Mesiniaga Berhad and Institut Kefahaman Islam Malaysia (IKIM) a public company limited by guarantee.

Dr. Muhamad Fuad is the designated Shariah person in-charge of Pacific Dynamic Global Islamic Fund.

SHARIAH INVESTMENT GUIDELINES ADOPTED BY BSSB The following guidelines are adopted by BSSB in determining the Shariah status of equity investments of Pacific Dynamic Global Islamic Fund: • The Fund must at all times and all stages of its operation comply with Shariah principles. • The Fund must be raised, operated, and finally redeemed by the investor on the basis of the contracts which

are acceptable in Shariah. The banking facilities and short-term money market instruments used for the Fund have to be those which comply with Shariah principles. Similarly all the variable-income instruments, sukuk, etc. must be those which are Shariah-compliant.

• For securities listed on the Bursa Malaysia, the Fund’s investments must be strictly confined to those securities on the list approved by the SACSC.

• For Islamic money market instruments and Islamic securities or sukuk based on the list readily available at Bank Negara Malaysia (for Islamic money market instruments) and SC (for Islamic securities or sukuk) websites.

• The SACSC has applied a standard criterion in focusing on the activities of the companies listed on Bursa Malaysia. As such, subject to certain conditions, companies whose activities are not contrary to the Shariah principles will be classified as Shariah-compliant securities. On the other hand, companies will be classified as Shariah non-compliant securities if they are involved in the following core activities: ▪ Financial services based on riba (interest); ▪ Gambling and gaming; ▪ Manufacture or sale of non-halal products or related products; ▪ Conventional insurance; ▪ Entertainment activities that are non-permissible according to Shariah; ▪ Manufacture or sale of tobacco-based products or related products; ▪ Stockbroking or share trading in Shariah non-compliant securities; and ▪ Other activities deemed non-permissible according to Shariah.

• The SACSC also takes into account contribution of Shariah non-compliant activities to the overall revenue and profit before tax of the listed companies. In addition, the financial ratios for cash in conventional accounts and instruments as well as interest bearing debts over the total assets of the listed companies are also considered in the analysis carried out by the SACSC. For companies with activities comprising both permissible and non-permissible elements, the SACSC considers two additional criteria: ▪ The public perception or image of the company must be good; and ▪ The core activities of the company are important and considered maslahah (‘benefit’ in general) to the

Muslim ummah (nation) and the country, and the non-permissible element is very small and involves matters such as ‘umum balwa (common plight and difficult to avoid), ‘uruf’(custom) and the rights of the non-Muslim community which are accepted by Islam.

48 Shariah Adviser

• The SACSC had considered the following criteria for a Special Purpose Acquisition Company (SPAC) to be

classified as Shariah-compliant: ▪ The proposed business activity should be Shariah-compliant; ▪ The proceeds raised from the IPO should be placed in an Islamic account; and ▪ In the event that the proceeds are invested, the investment should be Shariah-compliant.

• To determine the tolerable level of mixed contribution from permissible and non-permissible activities toward turnover and profit before tax of a company, the SACSC has established activity based and financial ratio benchmarks based on ijtihad (reasoning from the sources of Shariah by qualified Shariah scholars). If either the contributions from non-permissible activities exceed the benchmark, the securities of the company will be classified as Shariah non-compliant.

• Shariah-compliant securities include ordinary shares, warrants and transferable subscription rights (TSRs). This means that warrant and TSRs are classified as Shariah-compliant securities provided the underlying shares are also Shariah-compliant. On the other hand, loan stocks and bonds are Shariah non-compliant securities unless they are issued based on Shariah principles.

• The SACSC advises on the timing for the disposal of securities in the Fund which have been classified as Shariah non-compliant: ▪ “Shariah-compliant securities” which are subsequently reclassified as “Shariah non-compliant”

These refer to those securities which were earlier classified as Shariah-compliant securities but due to certain reasons such as changes in the companies’ business operations and financial positions, are subsequently reclassified as Shariah non-compliant. In this regard, if on the date that this updated list takes effect, the value of the securities held exceeds the original investment cost, the Fund which holds such Shariah non-compliant securities must liquidate them. To determine the time frame to liquidate such securities, the Shariah Adviser advises that such securities should be disposed of within one (1) month. Any capital gain arising from the disposal of the said Shariah non-compliant securities made with respect to the closing price on the announcement day can be kept by the Fund. However, any excess capital gain 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 channeled to approved charitable bodies. The Shariah Adviser advises that this cleansing process should be carried out within two (2) months from the above disposal date.

On the other hand, the Fund is allowed to hold investment in the Shariah non-compliant securities if the market price of the said securities is below the original investment cost. It is also permissible for the Fund to keep the dividends received during the holding period until such time when the total amount of dividends received and the market value of the Shariah non-compliant securities held equal the investment cost. At this stage, the Fund is to dispose of the holding within one (1) month.

In addition, during the holding period, the Fund is allowed to subscribe to: (a) any issue of new securities by a company whose Shariah non-compliant securities are held by the

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

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

on conditions that the Fund expedites the disposal of the Shariah non-compliant securities. For securities of other companies [as stated in (b) above], they must be Shariah-compliant securities.

49 Shariah Adviser

▪ Shariah non-compliant securities According to the SACSC, since the Fund invests based on Shariah principles, the Fund is to dispose any Shariah non-compliant securities which they presently hold, within a month of knowing the status of the securities. Any gain made in the form of capital gain or dividend received during or after the disposal of the securities has to be channeled to charitable bodies. The Fund has a right to retain only the original investment cost.

• For investment in foreign securities, the Pacific Dynamic Global Islamic Fund is only allowed to invest in securities which are on the Approved List of Dow Jones Islamic Index (DJII). With regards to the issue of delisting of Shariah-compliant securities from DJII and Shariah non-compliant foreign securities, the Fund is to abide by the same processes as laid down by SACSC above. In the rare event that the Fund wishes to invest in foreign securities not covered by DJII, the Fund must submit to the Shariah Adviser the latest information pertaining to business activities, complete financial statements and other related information on the relevant company to enable the Shariah Adviser to carry out stock screening. The decision of the Shariah Adviser is final.

To facilitate the purchase and sale of foreign securities, there may be a need to have cash placement in a non-Shariah bank account outside Malaysia. In such circumstances, the non-Shariah account should be non-interest bearing and the sole purpose is only to facilitate purchase and sale of foreign securities.

50 Taxation Adviser’s Letter

TAXATION ADVISER'S LETTER IN RESPECT OF THE TAXATION OF THE UNIT TRUSTS AND THE UNITHOLDERS (PREPARED FOR INCLUSION IN THIS PROSPECTUS)

22 January 2016

Ernst & Young Tax Consultants Sdn Bhd Level 23A, Menara Milenium Jalan Damanlela Pusat Bandar Damansara 50490 Kuala Lumpur

The Board of Directors Pacific Mutual Fund Bhd 1001, Level 10, Uptown 1 No. 1 Jalan SS21/58 Damansara Uptown 47400 Petaling Jaya Selangor Darul Ehsan

Dear Sirs

TAXATION OF THE UNIT TRUST AND UNITHOLDERS This letter has been prepared for inclusion in this first prospectus in connection with the offer of units in the unit trust known as Pacific Dynamic Global Islamic Fund (hereinafter referred to as "the Fund").

The purpose of this letter is to provide prospective unitholders with an overview of the impact of taxation on the Fund and the unitholders.

TAXATION OF THE FUND The taxation of the Fund is subject to the provisions of the Malaysian Income Tax Act 1967 (MITA), particularly Sections 61 and 63B.

Subject to certain exemptions, the income of the Fund comprising profits and other investment income derived from or accruing in Malaysia after deducting tax allowable expenses, is subject to Malaysian income tax, which is currently imposed at the rate of 25%1.

Under Section 2(7) of the MITA, any reference to interest shall apply, mutatis mutandis, to gains or profits received and expenses incurred, in lieu of interest, in transactions conducted in accordance with the principles of Syariah.

The effect of this is that any gains or profits received (hereinafter referred to as "profits") and expenses incurred, in lieu of interest, in transactions conducted in accordance with the principles of Syariah, will be accorded the same tax treatment as if they were interest.

Tax allowable expenses would comprise expenses falling under Section 33(1) and Section 63B of the MITA. Section 33(1) permits a deduction for expenses that are wholly and exclusively incurred in the production of gross income. In addition, Section 63B allows unit trusts a deduction for a portion of other expenses (referred to as ‘permitted expenses’) not directly related to the production of income, as explained below.

‘‘Permitted expenses’’ refer to the following expenses incurred by the Fund which are not deductible under Section 33(1) of the MITA: • the Manager's remuneration; • maintenance of the register of unitholders; • share registration expenses; • secretarial, audit and accounting fees, telephone charges, printing and stationery costs and postage. 1 Pursuant to Section 20 of the Finance (No. 2) Act 2014, with effect from year of assessment 2016, the income tax rate will be

reduced to 24%.


These expenses are given a partial deduction under Section 63B of the MITA, based on the following formula:

A X B 4C where

A is the total of the permitted expenses incurred for that basis period; B is gross income consisting of dividend2, interest and rent chargeable to tax for that basis period; and C is the aggregate of the gross income consisting of dividend2 and interest (whether such dividend or interest

is exempt or not) and rent, and gains made from the realisation of investments (whether chargeable to tax or not) for that basis period,

provided that the amount of deduction to be made shall not be less than 10% of the total permitted expenses incurred for that basis period.

Exempt Income The following income of the Fund are exempt from income tax: • Malaysian Sourced Dividends

All Malaysian-sourced dividends should be exempt from income tax.

• Malaysian Sourced Interest (Profits) (i) interest from securities or bonds issued or guaranteed by the Government of Malaysia; (ii) interest from debentures or sukuk other than convertible loan stock, approved or authorised by, or

lodged with, the Securities Commission; (iii) interest from Bon Simpanan Malaysia issued by Bank Negara Malaysia; (iv) interest derived from Malaysia and paid or credited by banks or financial institutions licensed under the

Banking and Financial Institutions Act 1989 or the Islamic Banking Act 19833; (v) interest derived from Malaysia and paid or credited by any development financial institution regulated

under the Development Financial Institutions Act 2002; (vi) interest from sukuk originating from Malaysia, other than convertible loan stock issued in any currency

other than Ringgit and approved or authorised by, or lodged with, the Securities Commission or the Labuan Financial Services Authority (LFSA);

(vii) interest which is specifically exempted by way of statutory orders; and (viii) interest paid or credited by Malaysia Building Society Berhad4.

• Discount Tax exemption is given on discount paid or credited to any unit trust in respect of investments as specified in items (i), (ii) and (iii) above.

2 Pursuant to Section 15 of the Finance Act 2011, with effect from the year of assessment 2011, dividend income is deemed to

include income distributed by a unit trust which includes distributions from Real Estate Investment Trusts. 3 The Banking and Financial Institutions Act 1989 and the Islamic Banking Act 1983 were repealed and replaced with the

Financial Services Act 2013 and the Islamic Financial Services Act 2013, respectively, with effect from 30 June 2013. Pursuant to Section 272(h) of the Financial Services Act 2013 and Section 283(h) of the Islamic Financial Services Act 2013, any reference to the Banking and Financial Institutions Act 1989 and the Islamic Banking Act 1983 in any written law shall generally be construed as a reference to the Financial Services Act 2013 or the Islamic Financial Services Act 2013, respectively.

4 The Ministry of Finance has issued approval letters stating that interest paid or credited by Malaysia Building Society Berhad

to unit trust is exempt from tax with effect from the year of assessment 2015. The exemption will be formalised by way of a statutory order.


Foreign Sourced Income Dividends, profits and other income derived from sources outside Malaysia and received in Malaysia by a resident unit trust is exempt from Malaysian income tax. However, such income may be subject to tax in the country from which it is derived.

Gains From The Realisation Of Investments Pursuant to Section 61(1) (b) of the MITA, gains from the realisation of investments will not be treated as income of the Fund and hence, are not subject to income tax. Such gains may be subject to real property gains tax (RPGT) under the Real Property Gains Tax Act 1976 (RPGT Act), if the gains are derived from the sale of chargeable assets, as defined in the RPGT Act.

Goods And Services Tax (GST) On 1 April 2015, GST was implemented at the standard rate of 6% to replace the existing sales tax and service tax systems. Based on the Goods and Services Tax Act 2014 which was gazetted on 19 June 2014, the Fund, being a collective investment vehicle, will be making exempt supplies. Hence, the Fund is not required to be registered for GST purposes. The Fund will incur expenses such as management fees, trustee fees and other administrative charges which will be subject to 6% GST. The 6% input tax which may be incurred on such expenses will generally not be claimable by the Fund.

TAXATION OF UNITHOLDERS For Malaysian income tax purposes, unitholders will be taxed on their share of the distributions received from the Fund.

The income of unitholders from their investment in the Fund broadly falls under the following categories: 1. taxable distributions; and 2. non-taxable and exempt distributions.

In addition, unitholders may also realise a gain from the sale of units.

The tax implications of each of the above categories are explained below:

1. Taxable Distributions Distributions received from the Fund will have to be grossed up to take into account the underlying tax paid by the Fund and the unitholder will be taxed on the grossed up amount.

Such distributions carry a tax credit, which will be available for set-off against any Malaysian income tax payable by the unitholder. Should the tax deducted at source exceed the tax liability of the unitholder, the excess is refundable to the unitholder.

Please refer to the paragraph below for the income tax rates applicable to the grossed up distributions.

2. Non-Taxable And Exempt Distributions Tax exempt distributions made out of gains from the realisation of investments and other exempt income earned by the Fund will not be subject to Malaysian income tax in the hands of the unitholders.


Rates Of Tax The Malaysian income tax chargeable on the unitholders depends on their tax residence status and whether they are individuals, corporations or trust bodies. The relevant income tax rates are as follows:

Unitholders Malaysian Income Tax Rates

Malaysian tax resident: • Individual and non-corporate unitholders (such as

associations and societies) • Co-operatives5 • Trust bodies

• Progressive tax rates ranging from 0% to 25%6

• Progressive tax rates ranging from 0% to 24% • 25%1

• Corporate unitholders (i) A company with paid up capital in respect of

ordinary shares of not more than RM2.5 million (at the beginning of the basis period for the year of assessment)7

(ii) Companies other than (i) above

• For every first RM500,000 of chargeable income

@ 20%8 • Chargeable income in excess of RM500,000 @

25%1 • 25%1

Non-Malaysian tax resident (Note): • Individual and non-corporate unitholders • Corporate unitholders and trust bodies

• 25%9 • 25%1

Note: Non-resident unitholders may be subject to tax in their respective countries depending on the provisions of the tax legislation in the respective countries and any existing double taxation arrangements with Malaysia.

5 Pursuant to Paragraph 12(1), Schedule 6 of the MITA, the income of any co-operative society: (a) in respect of a period of five years commencing from the date of registration of such co-operative society; and (b) thereafter where the members’ funds [as defined in Paragraph 12(2)] of such co-operative society as at the first day of the basis period for the year of assessment is less than seven hundred and fifty thousand ringgit is exempt from tax.

6 Pursuant to Section 24 of the Finance Act 2015, with effect from year of assessment 2016, the top Malaysian income tax rate for resident individuals will be increased from 25% to 28%.

7 A company would not be eligible for the 20% tax rate on the first RM500,000 of chargeable income if: (a) more than 50% of the paid up capital in respect of the ordinary shares of the company is directly or indirectly owned by a

related company which has a paid up capital in respect of ordinary shares of more than RM2.5 million at the beginning of a basis period for a year of assessment;

(b) the company owns directly or indirectly more than 50% of the paid up capital in respect of the ordinary shares of a related company which has a paid up capital in respect of ordinary shares of more than RM2.5 million at the beginning of a basis period for a year of assessment;

(c) more than 50% of the paid up capital in respect of the ordinary shares of the company and a related company which has a paid up capital in respect of ordinary shares of more than RM2.5 million at the beginning of a basis period for a year of assessment is directly or indirectly owned by another company.

8 Pursuant to Section 20 of the Finance (No. 2) Act 2014, with effect from year of assessment 2016, the income tax rate will be reduced to 19% on chargeable income up to RM500,000 and 24% on the remaining chargeable income.

9 Pursuant to Section 24 of the Finance Act 2015, with effect from year of assessment 2016, the income tax rate for non-resident individuals will be increased from 25% to 28%.


Gains From Sale Of Units Gains arising from the realisation of investments will not be subject to income tax in the hands of unitholders unless they are insurance companies, financial institutions or traders/dealers in securities.

Unit Splits And Reinvestment Of Distributions Unitholders may also receive new units as a result of unit splits or may choose to reinvest their distributions. The income tax implications of these are as follows: • Unit splits – new units issued by the Fund pursuant to a unit split will not be subject to income tax in the

hands of the unitholders. • Reinvestment of distributions – unitholders may choose to reinvest their income distribution in new units by

informing the Manager. In this event, the unitholder will be deemed to have received the distribution and reinvested it with the Fund.

************************

We hereby confirm that, as at the date of this letter, the statements made in this report correctly reflect our understanding of the tax position under the current Malaysian tax legislation and the related interpretation and practice thereof, all of which are subject to change, possibly on a retrospective basis. We have not been retained (unless specifically instructed hereafter), nor are we obligated to monitor or update the statements for future conditions that may affect these statements. The statements made in this letter are not intended to be a complete analysis of the tax consequences relating to an investor in the Fund. As the particular circumstances of each investor may differ, we recommend that investors obtain independent advice on the tax issues associated with an investment in the Fund.

Yours faithfully Ernst & Young Tax Consultants Sdn Bhd Bernard Yap Partner

Ernst & Young Tax Consultants Sdn Bhd has given its consent to the inclusion of the Taxation Adviser’s Letter in the form and context in which it appears in this prospectus and has not withdrawn such consent before the date of issue of this prospectus.

55 Related Party Transactions / Conflict Of Interests

RELATED PARTY TRANSACTIONS / CONFLICT OF INTERESTS

There may be related party transactions involving the Fund where employees of the Manager and Lion Global Investors (formerly known as Lion Capital Management Limited) are the unitholders of the Fund. Employees of Pacific Mutual and Lion Global Investors and their immediate family members may purchase units of the Fund without having to pay the sales charge.

We have in place policies and procedures to deal with any conflict of interest situation. Our Directors, investment committee members and employees are required to disclose any situations where their interests may conflict with those of the Fund; and to refrain from participating in the decision-making process relating to the matter. Where there is any risk of conflict of interest, employees are required to obtain prior approval before transacting in securities. This is also to ensure that transactions for the Fund are executed in the best manner so as to benefit the Fund.

As at 18 January 2016, none of our Directors or substantial shareholders have any direct or indirect interest in other corporations carrying out a similar business either locally or foreign except for Gerard Lee How Cheng and James Tan Thian Peng. Gerard Lee How Cheng is the Executive Director and Chief Executive Officer of Lion Global Investors Limited, while James Tan Thian Peng is the Chief Operating Officer of Lion Global Investors Limited. James Tan Thian Peng is also the Director for Lion Global Funds (LGlobal Funds), which are registered in Luxembourg.

There are currently no existing experts who have any potential interest / conflict of interest in an advisory capacity with the Manager.

The Trustee has in place policies and procedures to deal with any conflict of interest situation. The Trustee will not make improper use of their position as the legal registered owner of the Fund’s assets to gain, directly or indirectly, any advantage or cause detriment to the interest of the unitholders. 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.

CIMB ISLAMIC TRUSTEE BERHAD’S POLICY ON DEALING WITH CONFLICT OF INTEREST ELEMENTS CIMB Islamic Trustee Berhad is the Trustee for the Pacific Dynamic Global Islamic Fund and there may be proposed related party transactions involving or in connection with this Fund in the following circumstances: • where this Fund invests in instrument(s) offered by the CIMB Group; • where this Fund is being distributed by the CIMB Group as IUTA; and • where the assets of this Fund are being custodised by the CIMB Group as sub-custodian of this Fund (i.e.

Trustee’s delegate).

Subject to the above and any local regulations, the Trustee and/or its related group of companies may deal with each other, the Fund or any unitholder or enter into any contract or transaction with each other, the Fund or any unitholder or retain for its own benefit any profits or benefits derived from any such contract or transaction or act in the same or similar capacity in relation to any other scheme.

56 Additional Information, Consents, Exemption Granted By The Securities Commission, Documents Available For Inspection

ADDITIONAL INFORMATION

POLICIES AND PROCEDURES TO PREVENT MONEY LAUNDERING ACTIVITIES We have policies and procedures in place to comply with the legislation in force in Malaysia to prevent money laundering activities. In order to implement these procedures, investors will be required to provide detailed verification of identity including but not limited to proof of identity, residential or registered address, occupation or business, funds or source of income when buying or redeeming units and to periodically update their records. Until satisfactory evidence has been received, we reserve the right to refuse or accept the application form from investors to buy or redeem units or to pay the proceeds of the redemption of units. We may delay or refuse any application without giving any reason for doing so where this is in accordance with our anti-money laundering obligations. We also reserve the right to request additional information including the identity of any beneficial owners as may be required to support the verification of information and to allow us to carry out due diligence exercise on the investors in compliance with the relevant legislation.

Any suspicious transaction will be reported to the relevant authority.

PRUDENTIAL CONTROL The Legal, Risk and Compliance department is responsible for compliance matters and liaises with the Securities Commission to ensure that all laws, regulations, code of conduct and prudential limits are followed.

The Head of Legal, Risk and Compliance is the designated person responsible for compliance and she reports to the Board of Directors on compliance matters. In the event that the Head of Legal, Risk and Compliance is absent, or has resigned, the next-person-in-line will be the designated person responsible for compliance matters until such position is filled.

CONSENTS

• The Trustee, Shariah Adviser, banker, auditors, internal auditor and solicitors for the Manager have consented to include their names in this prospectus in the manner and context in which they appear in this prospectus and have not subsequently withdrawn their consent.

• The Tax Adviser has consented to include its name and the Tax Adviser's letter in the manner and form as contained in this prospectus and its consent has not subsequently been withdrawn.

EXEMPTION GRANTED BY THE SECURITIES COMMISSION

The Manager has applied to the Securities Commission for an exemption from having to comply with Clause 3.01 (b) of the Guidelines on Outsourcing for Capital Market Intermediaries which provides that the Manager can only outsource its internal audit function to its group or an external auditor.

On 26 April 2013, the Securities Commission had approved the Manager’s application for the above exemption and the internal audit function is outsourced to Boardroom Corporate Services (KL) Sdn Bhd effective 26 April 2013.

DOCUMENTS AVAILABLE FOR INSPECTION

For a period of not less than 12 months from the date of issuance of this prospectus, copies of the following documents (where applicable) may be inspected at our business and registered office or such other place as the SC may determine: • The deeds and supplemental deed(s) of the Fund; • Each material contract or document referred to in the prospectus; • The audited financial statements of the Fund for the current financial year (where applicable) and for the last

three financial years or if the Fund has been established/incorporated for a period of less than three years, the entire period preceding the date of the prospectus;

• All reports, letters or other documents, valuations and statements by any expert, any part of which is extracted or referred to in the prospectus. Where a summary expert’s report is included in the prospectus, the corresponding full expert’s report should be made available for inspection;

• Writ and relevant cause papers for all material litigation and arbitration disclosed in the prospectus; and • All consents given by experts disclosed in the prospectus.

57 Inspection Of The Register Of Unitholders, Directors’ Declaration

INSPECTION OF THE REGISTER OF UNITHOLDERS

The Register of unitholders is kept at our business office at 1001, Level 10, Uptown 1, No. 1 Jalan SS21/58, Damansara Uptown, 47400 Petaling Jaya, Selangor. You are invited to inspect the register at any time during office hours: Monday to Friday (9.00 a.m. to 6.00 p.m.).

DIRECTORS' DECLARATION

This prospectus has been reviewed and approved by the Directors of Pacific Mutual Fund Bhd 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, that there are no false or misleading statements, or omission of other facts which would make any statement in the prospectus false or misleading.

Directors: GERARD LEE HOW CHENG (CHAIRMAN) JAMES TAN THIAN PENG DATO’ AHMAD ZAHUDI BIN HAJI SALLEH ONG EU JIN* DATUK LEE SAY TSHIN* TEH CHI-CHEUN

* Independent Directors

58 List Of Pacific Mutual Fund Bhd Offices, Agency Offices And Institutional Unit Trust Advisers

LIST OF PACIFIC MUTUAL FUND BHD OFFICES, AGENCY OFFICES AND INSTITUTIONAL UNIT TRUST ADVISERS

HEAD OFFICE 1001, Level 10, Uptown 1, No. 1 Jalan SS21/58, Damansara Uptown, 47400 Petaling Jaya, Selangor Tel: 03-7725 9877 Fax: 03-7725 9860 E-mail: [email protected] Website: www.pacificmutual.com.my

BRANCHES

Pulau Pinang 44-G, Persiaran Bayan Indah, Bayan Bay, 11900 Pulau Pinang Tel: 04-644 7979 Fax: 04-644 1112 E-mail: [email protected]

Perak 9A, Persiaran Greentown 8, Pusat Perdagangan Greentown, 30450 Ipoh, Perak Tel: 05-242 4322 Fax: 05-242 4323 E-mail: [email protected]

Melaka 601 & 601A, Jalan Melaka Raya 10, Taman Melaka Raya, 75000 Melaka Tel: 06-282 8788 Fax: 06-286 8788 E-mail: [email protected]

Johor 114A, 1st Floor, Jalan Harimau Tarum, Taman Century, 80250 Johor Bahru, Johor Tel: 07-335 2098 Fax: 07-335 2099 E-mail: [email protected]

Sarawak Lot 893, 2nd Floor, Waterfront Commercial Centre, 98000 Miri, Sarawak Tel: 085-428 055 Fax: 085-438 055 E-mail: [email protected]

87-B, Ground Floor, Jalan Ban Hock, 93100 Kuching, Sarawak Tel: 082-233 933 Fax: 082-422 733 E-mail: [email protected]

Sabah Lot 8, 1st Floor, Block G, Jalan Penampang By Pass, Kepayan Ridge PH 10A, Lorong Pusat Komersil 88/1, 88300 Kota Kinabalu, Sabah Tel: 088-251 088 Fax: 088-251 059 E-mail: [email protected]

AGENCY OFFICES

Selangor 21A-2, Block H, Dataran Prima, Jalan PJU 1/37, 47301 Petaling Jaya, Selangor Tel: 03-7880 0733 HP: 017-885 3787

172A, Persiaran Pegaga, Bayu Perdana, 41200 Klang, Selangor HP: 012-278 9118

B-2-20, Tropicana Merchant Square, No. 1 Jalan Tropicana Selatan 1, PJU 3, 47410 Petaling Jaya, Selangor Tel: 03-7883 0801 HP: 012-315 9326

B-1-19, Tropicana Merchant Square, No. 1 Jalan Tropicana Selatan 1, PJU 3, 47410 Petaling Jaya, Selangor Tel: 03-7883 0001 HP: 012-282 2735

No. 3A, Jalan Perusahaan 1, Serdang Light Industrial Park, 43300 Seri Kembangan, Selangor HP: 012-226 6289 & 017-322 6631

No. 15, Jalan PUJ 3/9, Taman Puncak Jalil, Bandar Putra Permai, 43300 Seri Kembangan, Selangor Tel: 03-8955 0208

59 List Of Pacific Mutual Fund Bhd Offices, Agency Offices And Institutional Unit Trust Advisers

Kuala Lumpur 1-54, Lorong Udang Rawa, Taman Sri Segambut, 52000 Kuala Lumpur Tel: 03-6731 5445 HP: 012-330 2699

69-2, Jalan Radin Tengah, Bandar Baru Sri Petaling, 57000 Kuala Lumpur Tel: 016-967 1587

E-7-27, IOI Boulevard, Jalan Kenari 5, Bandar Puchong Jaya, 47170 Puchong, Selangor Tel: 03-8071 1661

Melaka No. 110, 111 & 112, Level 1, Taman Melaka Raya, Jalan Merdeka, 75000 Melaka Tel: 06-281 5329

Johor F6 Tingkat 1, Jalan Wayang, 86000 Kluang, Johor Tel: 07-772 5752

Sarawak No. 1, First Floor, Jalan Uplands, Simpang Tiga, 93200 Kuching, Sarawak Tel: 082-412 768 HP: 013-802 8786 & 016-886 5768

Lot 1455, No. 6, Taman Emas, Tg. Batu Road, 97000 Bintulu, Sarawak Tel: 086-330 055 HP: 012-871 1888

No. 7-A, Lorong Jerrwit Barat 1-D, 96000 Sibu, Sarawak Tel: 084-333 978

No. 15, 2nd Floor, Medan Sentral Comercial Centre, Jalan Sultan Iskandar / Jalan Kidurong, 97000 Bintulu, Sarawak Tel: 086-312 343 HP: 016-889 8789

No. 324, 1st Floor, Chan Bee Kiew Building, Jalan Chan Bee Kiew, 93450 Kuching, Sarawak Tel: 019-886 2259

INSTITUTIONAL UNIT TRUST ADVISERS

For more details on the list of appointed Institutional Unit Trust Advisers (IUTA), please contact the Manager.

Our IUTA may not carry the complete set of our Funds. Investments made via our IUTA may be subject to different terms and conditions.

This page has been left blank intentionally.

Date Of ConstitutionXXXX 2016

ManagerPacific Mutual Fund Bhd (336059-U)a company incorporated in Malaysia under the Companies Act 1965

TrusteeCIMB Islamic Trustee Berhad (167913-M)

INVESTORS ARE ADVISED TO READ AND UNDERSTAND THE CONTENTS OF THE PROSPECTUS. IF IN DOUBT, PLEASE CONSULT A PROFESSIONAL ADVISER.

FOR INFORMATION CONCERNING CERTAIN RISK FACTORS, WHICH SHOULD BE CONSIDERED BY PROSPECTIVE INVESTORS, SEE ‘RISK FACTORS’ COMMENCING ON PAGE 11.

THIS PROSPECTUS IS DATED XXXX 2016 AND EXPIRES ON XXXX 2017.

www.pacificmutual.com.my 03-7725 9877

(xxxx 2016 - xxxx 2017)