MASTER PROSPECTUS - eUnitTrust.com.my...regularly, is open to the public and has adequate liquidity...

MASTER PROSPECTUS

This Master Prospectus is dated 1 January 2011 and expires on 31 December 2011, and comprises the following 6 Funds namely:

MIDF AMANAH GROWTH FUND (constituted on 2 December 1966)

MIDF AMANAH STRATEGIC FUND (constituted on 1 June 1970)

MIDF AMANAH ISLAMIC FUND (constituted on 14 May 1971)

MIDF AMANAH DYNAMIC FUND (constituted on 5 May 1976)

MIDF AMANAH MONEY MARKET FUND (constituted on 24 January 1984)(formerly known as the MIDF AMANAH BOND FUND)

MIDF AMANAH SHARIAH MONEY MARKET FUND (constituted on 1 April 2004)(formerly known as the MIDF AMANAH ISLAMIC BOND FUND)

MANAGER:MIDF Amanah Asset Management Berhad (11804-D)

TRUSTEES:AmanahRaya Trustees Berhad (766894-T)

Mayban Trustees Berhad (5004-P)

INVESTORS ARE ADVISED TO READ AND UNDERSTAND THE CONTENTS OF THIS MASTER PROSPECTUS. IF IN DOUBT, PLEASE CONSULT A PROFESSIONAL ADVISER.FOR INFORMATION CONCERNING CERTAIN RISK FACTORS WHICH SHOULD BE CONSIDERED BY PROSPECTIVE INVESTORS, SEE "RISK FACTORS" COMMENCING ON PAGE 27.

This Master Prospectus dated XX January 2011 shall supersede the Master Prospectus dated XXXXXXX

MIDF Amanah Asset Management Berhad (11804-D)

Level 4, Menara MIDF, 82, Jalan Raja Chulan, 50200 Kuala Lumpur.Tel: (603) 2173 8488 Fax: (603) 2173 8555 Website: www.midf.com.my/cms/midfamanah

MASTER PROSPECTUS

This Master Prospectus is dated 1 March 2014 and expires on 28 February 2015, and comprises the following 6 Funds namely:

MIDF AMANAH GROWTH FUND (constituted on 2 December 1966)

MIDF AMANAH STRATEGIC FUND (constituted on 1 June 1970)

MIDF AMANAH ISLAMIC FUND (constituted on 14 May 1971)

MIDF AMANAH DYNAMIC FUND (constituted on 5 May 1976)

MIDF AMANAH MONEY MARKET FUND (constituted on 24 January 1984)

MIDF AMANAH SHARIAH MONEY MARKET FUND (constituted on 1 April 2004)

MANAGER:MIDF Amanah Asset Management Berhad (11804-D)

TRUSTEES:AmanahRaya Trustees Berhad (766894-T)

Maybank Trustees Berhad (5004-P)

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

This Master Prospectus dated 1 March 2014 shall supersede the Master Prospectus dated 1 March 2013


Level 3A, Menara MIDF, 82, Jalan Raja Chulan, 50200 Kuala Lumpur.Tel: (603) 2173 8488 Fax: (603) 2173 8555 Website: www.midf.com.my/cms/midfamanah

2

Message from the CEO Dear Investors, Thank you for expressing your interest in our MIDF Amanah Growth Fund, MIDF Amanah Strategic Fund, MIDF Amanah Dynamic Fund, MIDF Amanah Islamic Fund, MIDF Amanah Money Market Fund and MIDF Amanah Shariah Money Market Fund (collectively the “Funds”). Please refer to pages 35 - 56 for the Funds’ main features (e.g. objectives and the investment policies and strategies of the Funds), which will provide you with a better understanding of how our Funds work. We offer a wide range of Funds to cater to different investors’ needs, thus it is best that you understand how each of the Funds work and consider whether they are suitable for you. You may also refer to pages 35 - 56 for the “Investors’ Profile” for the Funds to assess whether a particular Fund is suitable for your needs. All investments carry some form of risk. The risk profile of a particular Fund will very much depend on the underlying investments of the Fund. Different Funds have different risk profiles; please refer to pages 31 - 34 for a better understanding of the principal risks involved when investing in our Funds. All investments in the Funds will be subjected to direct (sales charge, deferred sales charge, switching fee, transfer fee and bank commission payable during cheque clearing) and indirect (management fee, trustee fee and other permitted expenses) charges and fees. Please refer to pages 80 - 83 for the Funds’ Fees, Charges and Expenses. If you are interested in purchasing Units of any of the Funds which are the subject of this Master Prospectus, have any queries or require further information, please contact our Customer Service Line 03-2173 8488 at anytime during office hours (8.45 a.m. to 5.45 p.m.) from Monday to Friday. Alternatively, you may e-mail your enquiries to [email protected] or visit our group website, http://www.midf.com.my/cms/midfamanah. We look forward to being of service to you. Best wishes, Azlan Hussin Chief Executive Officer

3

Responsibility Statements This Master Prospectus has been reviewed and approved by the directors of 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, there are no false or misleading statements, or omission of other facts which would make any statement in this Master Prospectus false or misleading.

Statements of Disclaimer The Securities Commission Malaysia has authorized the Funds and a copy of this Master Prospectus has been registered with the Securities Commission Malaysia.

The authorization, and the registration of this Master Prospectus, should not be taken to indicate that the Securities Commission Malaysia recommends the Funds or assumes responsibility for the correctness of any statement made or opinion or report expressed in this Master Prospectus.

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

INVESTORS SHOULD RELY ON THEIR OWN EVALUATION TO ASSESS THE MERITS AND RISKS OF THE INVESTMENT. IN CONSIDERING THE INVESTMENT, INVESTORS WHO ARE IN DOUBT ON THE ACTION TO BE TAKEN SHOULD CONSULT PROFESSIONAL ADVISERS IMMEDIATELY. Additional Statements

No Units will be issued or sold based on this Master Prospectus later than one (1) year after the date of this Master Prospectus. Investors are advised to note that recourse for false or misleading statements or acts made in connection with this Master Prospectus is directly available through sections 248, 249 and 357 of the Capital Markets and Services Act 2007. The MIDF Amanah Islamic Fund and the MIDF Amanah Shariah Money Market Fund have been certified as being Shariah-compliant by the Shariah Adviser appointed for the said Funds.

4

Table of Contents (1) DEFINITIONS [6]

(2) CORPORATE DIRECTORY [9]

(3)

KEY DATA

[12]

(4) RISK FACTORS [31]

(5) INFORMATION ON THE FUNDS

[35]

(6) ADDITIONAL INFORMATION IN RELATION TO SHARIAH-COMPLIANT FUNDS (MAIF, MASMMF)

[57]

(7)

PERFORMANCES OF THE FUNDS

[60]

(8) HISTORICAL FINANCIAL HIGHLIGHTS OF THE FUNDS

[72]

(9)

FEES, CHARGES AND EXPENSES

[80]

(10)

(11)

TRANSACTION INFORMATION TRANSACTION DETAILS

[84]

[88]

(12) THE MANAGEMENT AND ADMINISTRATION OF THE FUNDS

[91]

(13) THE TRUSTEES

[97]

(14) THE SHARIAH ADVISER [103]

(15)

SALIENT TERMS OF THE DEED

[105]

(16) CONFLICT OF INTEREST AND RELATED PARTY TRANSACTIONS [109]

(17) CONSENT [112]

(18) ADDITIONAL INFORMATION [113]

(19) DOCUMENTS AVAILABLE FOR INSPECTION [114]

5

(20) TAXATION ADVISER’S LETTER

[115]

(21)

(22)

UNIT TRUST LOAN/FINANCING RISK DISCLOSURE STATEMENT LIST OF DISTRIBUTION CHANNELS

[121]

[122]

6

(1) DEFINITIONS In this Master Prospectus, the following abbreviations or words shall have the following meanings unless otherwise stated:

Act the Capital Markets and Services Act 2007 Bursa Malaysia the stock exchange managed or operated by Bursa Malaysia

Securities Berhad Business Day a day on which the Bursa Malaysia is open for trading

Deed(s) the master deed for the Funds and any other master supplemental

deeds that may be entered into between the Manager and the Trustees and registered with the SC

deposits fixed deposits Eligible Market a market which is regulated by a regulatory authority, operates

regularly, is open to the public and has adequate liquidity for the purposes of a Fund

FIMM Federation of Investment Managers Malaysia Fund(s) the unit trust schemes offered for sale through this Master

Prospectus which are the MIDF Amanah Growth Fund, MIDF Amanah Strategic Fund, MIDF Amanah Dynamic Fund, MIDF Amanah Money Market Fund, MIDF Amanah Islamic Fund and MIDF Amanah Shariah Money Market Fund referred to individually as “the Fund” or collectively as “the Funds”

Forward Pricing means that prices of Units will be calculated based on the NAV of the

Fund at the next valuation point after an instruction or a request is received by the Manager

Guidelines the Guidelines on Unit Trust Funds issued by the SC as may be

amended from time to time IUTA Institutional Unit Trusts Advisers

FBMS FTSE Bursa Malaysia Emas Shariah FBMSCAP FTSE Bursa Malaysia Small Cap Index FBMKLCI FTSE Bursa Malaysia KLCI

Long Term means a period of 5 years and above

Manager/ Management

Company/ MIDF Amanah/ MIDFA


MADF MIDF Amanah Dynamic Fund

MAGF MIDF Amanah Growth Fund

7

MAIF MIDF Amanah Islamic Fund

MAMMF MIDF Amanah Money Market Fund

MASF MIDF Amanah Strategic Fund

MASMMF MIDF Amanah Shariah Money Market Fund

MER Management Expense Ratio Ratio of the sum of fees and recovered expenses of the Fund to the average value of the Fund calculated on a daily basis

(Fees of the Fund + Recovered Expenses of the Fund) x 100 Average Value of the Fund for the year calculated on a daily basis

Medium Term means a period between 3 to 5 years

Medium to Long Term means a period of 3 years and above

Net Asset Value or NAV Net asset value (NAV) of the Fund is the total value of the Fund’s assets minus its liabilities at the 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

Net Asset Value (NAV) per Unit

Net Asset Value per Unit of the Fund is the NAV divided by its total number of units in issue as at a Valuation Point

PTR (Portfolio Turnover Ratio) (Total acquisitions and disposals of investment for the year) / 2 Average NAV of the Fund

The portfolio turnover ratio indicates whether the Fund buys and sells securities frequently or whether it takes a longer view in its investment strategy. A portfolio turnover rate of one means that the average holding period of securities purchases is one year. A high PTR indicates that the Fund buys and sells securities very often

Repurchase Price the price payable by the Manager to a Unit Holder pursuant to a request of repurchase by the Unit Holder and will be the NAV per Unit of the Fund

RAM the Rating Agency of Malaysia

RM Ringgit Malaysia

SACSC the Shariah Advisory Council of the SC SC/ Securities Commission the Securities Commission Malaysia

Selling Price the price payable by an investor or a Unit Holder for the purchase of

a Unit of a Fund and will be the NAV per Unit of the Fund

8

Shariah means 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 Requirements means 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

sukuk means a document or certificate, documenting the undivided pro-

rated ownership of underlying assets. The sak (singular of sukuk) is freely traded at par, premium or discount. In Malaysia, the term sukuk is used for fixed income securities which comply with Shariah requirements. It is normally used together with Shariah contracts applied in the structure, such as Bai Bithaman Ajil, Murabahah and Istisna’ for underlying transactions based on indebtedness, or Musyarakah and Mudharabah for underlying transactions based on partnership

Trustee(s) AmanahRaya Trustees Berhad (ART) for MAGF, MASF, MADF,

MAMMF, MAIF; and Maybank Trustees Berhad (MTB) for MASMMF Unit or Units means a measurement of the right or interest of a Unit Holder in the

Fund and means a Unit (including a fraction of a Unit) of the Fund Unit Holders refers to the person registered as the holder of a Unit or Units

including persons jointly registered for a particular Fund

9

(2) CORPORATE DIRECTORY MANAGER MIDF Amanah Asset Management Berhad (11804-D) REGISTERED OFFICE

21st Floor, Menara MIDF, 82 Jalan Raja Chulan, 50200 Kuala Lumpur Tel: 03 – 2173 8888

BUSINESS OFFICE

Level 3A, Menara MIDF, 82 Jalan Raja Chulan, 50200 Kuala Lumpur Tel: 03 - 2173 8488 (Customer Service Line) Fax: 03 - 2173 8555 E-mail: [email protected] Website: www.midf.com.my/cms/midfamanah

MANAGER’S DELEGATE Malaysian Industrial Development Finance Berhad (3755-M) (Finance, Human Resource, Administration, Secretarial and Legal, Internal Audit, Information Technology, Quality Management, Corporate Communications) REGISTERED OFFICE

Level 21, Menara MIDF, 82 Jalan Raja Chulan, 50200 Kuala Lumpur

BUSINESS OFFICE Level 17, 19, 20 & 21, Menara MIDF, 82 Jalan Raja Chulan, 50200 Kuala Lumpur

MANAGER’S DELEGATE (Compliance, Risk Management)

MIDF Amanah Investment Bank Berhad (23878-X)

REGISTERED OFFICE

Level 21, Menara MIDF, 82 Jalan Raja Chulan, 50200 Kuala Lumpur

BUSINESS OFFICE Level 9, 10, 11 & 12, Menara MIDF, 82 Jalan Raja Chulan, 50200 Kuala Lumpur

TRUSTEE AmanahRaya Trustees Berhad (766894–T) (MAGF, MASF, MADF, MAMMF, MAIF) REGISTERED OFFICE

Tingkat 11, Wisma AmanahRaya, No.2, Jalan Ampang, 50508 Kuala Lumpur

BUSINESS OFFICE

Tingkat 2, Wisma TAS, No.21, Jalan Melaka, 50100 Kuala Lumpur Tel: 03-2036 5000/5129 Fax: 03-2072 0322 Website: www.artrustees.com.my

TRUSTEE (MASMMF)

Maybank Trustees Berhad (5004-P)

REGISTERED AND BUSINESS OFFICE

34th Floor, Menara Maybank, 100 Jalan Tun Perak, 50050 Kuala Lumpur Tel: 03-2070 8363/03-2070 8833 Fax: 03-2072 0320 Website: www.maybank2u.com.my

10

BOARD OF DIRECTORS Puan Sri Shahrizan Abdullah (Non-Independent Non-Executive) (Chairman)

Dato’ Kalsom binti Abd. Rahman (Non-Independent Non-Executive Director)

Datuk Mohd Najib bin Hj. Abdullah (Non-Independent Non-Executive Director) Sharkawi bin Alis (Independent Non-Executive Director)

Abdul Rahim bin Abdul Hamid (Independent Non-Executive Director) Azlan Hussin (CEO/Executive Director) INVESTMENT COMMITTEE MEMBERS

Abdul Rahim bin Abdul Hamid (Independent Member) Dato’ Kalsom binti Abd. Rahman (Non-Independent Member) Teoh Chye Jin (Independent Member)

BOARD AUDIT AND RISK MANAGEMENT COMMITTEE MEMBERS

Sharkawi bin Alis (Independent Non-Executive Director) (Chairman) Puan Sri Shahrizan Abdullah (Non-Independent Non-Executive Director) Abdul Rahim bin Abdul Hamid (Independent Non-Executive Director)

COMPANY SECRETARIES

Shahnaz Radhiah Zulkifli (LS 0004721) 111, Jalan 4A, Ampang Jaya, 68000 Ampang Selangor Darul Ehsan

Hadidah Amin (LS 05402) No 26, Jalan Cahaya 10, Taman Cahaya, 68000 Ampang Selangor Darul Ehsan

AUDITORS

Ernst & Young Level 23A, Menara Milenium, Jalan Damanlela Pusat Bandar Damansara, Damansara Heights 50490 Kuala Lumpur

TAX ADVISER Ernst & Young Tax Consultants Sdn Bhd

Level 23A, Menara Milenium, Jalan Damanlela Pusat Bandar Damansara, Damansara Heights 50490 Kuala Lumpur

SOLICITORS Naqiz & Partners

No. 42A, Lorong Dungun Damansara Heights 50490 Kuala Lumpur

SHARIAH ADVISER Ir. Dr. Hj. Muhamad Fuad Abdullah

Dr. Mohamed Fairooz Abdul Khir Dato’ Haji Muhamad Asri Haji Abdullah PRINCIPAL BANKERS Malayan Banking Berhad (3813-K)

Menara Maybank, Jalan Tun Perak, 50050 Kuala Lumpur OCBC Bank (Malaysia) Berhad (295400-W) 18th Floor, Menara OCBC 18 Jalan Tun Perak 50050 Kuala Lumpur

11

FEDERATION OF INVESTMENT MANAGERS MALAYSIA

Federation of Investment Managers Malaysia (FIMM) 19-07-3, 7th Floor, PNB Damansara No. 19, Lorong Dungun Damansara Heights 50490 Kuala Lumpur Telephone No. : 03-2093 2600 Fax No. : 03-2093 2700 Email : [email protected]

12

(3) KEY DATA THIS SECTION IS ONLY A SUMMARY OF THE SALIENT INFORMATION ABOUT THE FUNDS. INVESTORS SHOULD READ AND UNDERSTAND THE WHOLE MASTER PROSPECTUS BEFORE MAKING ANY INVESTMENT DECISION.

Information on the Funds Page FUND

MIDF

AMANAH GROWTH

FUND (MAGF)

MIDF AMANAH

STRATEGIC FUND

(MASF)

MIDF AMANAH ISLAMIC FUND

(MAIF)

(MAIF has been certified as being Shariah-compliant by

the Shariah Adviser)

Fund Category

Equity

Equity

Equity

35, 39, 43

Fund Type

Income and

Growth

Smallcap

Growth (Islamic)

35, 39, 43

Investment Objective

To achieve Long Term

capital growth through

investments in large, well

established companies.

To achieve Long

Term capital growth through

investments in smaller, high

growth companies.

To achieve Long Term capital growth through investments

which conform with the principles of the Shariah.

35, 39, 43

Investment Policy and Strategy

The investment

strategy is to seek Long

Term capital appreciation by

investing in shares of well established, high growth companies.

Further

elaboration of the investment strategy is set out in page 35.

The investment

strategy is to seek Long Term capital

appreciation by investing in shares

of smaller, high growth companies.

Further elaboration of the investment strategy is set out

in page 39.

The investment strategy is to

seek Long Term capital appreciation by investing in investment instruments that

comply with Shariah requirements.

Further elaboration of the

investment strategy is set out in page 43.

35, 39, 43

13

Asset Allocation

Equities:

70% - 98% Cash In Bank and/or Liquid

Assets: 2% - 30%

Equities:


Assets: 2% - 30%

Shariah-Compliant Equities:

70% - 98% Cash In Bank and/or Islamic

Liquid Assets: 2% - 30%

35, 39, 43

Principal Risks

market risk,

stock specific risk and liquidity

risk

market risk, stock specific risk and

liquidity risk.

market risk, stock specific risk,

liquidity risk and reclassification of Shariah

status risk.

31 – 34

Investors’ Profile

Suitable for

investors who are seeking Long Term

capital growth and are

prepared to assume a high level of stock market risks.

Suitable for

investors who are seeking Long Term capital growth and

are prepared to take on a higher

level of risk associated with

investment in small capitalised stocks.

Suitable for investors who are

seeking Long Term capital growth, who wish their

investments to be in line with Shariah requirements and who can tolerate high level of risks.

35, 39, 43

Distribution Policy

The Fund’s distribution

policy will be in line with the

objective of the Fund. The

distributions of income (if any) will be declared

at the end of each financial

year of the Fund.

The Fund’s

distribution policy will be in line with

the objective of the Fund. The

distributions of income (if any) will be declared at the

end of each financial year of the

Fund.

The Fund’s distribution policy

will be in line with the objective of the Fund. The distributions

of income (if any) will be declared at the end of each financial year of the Fund.

90

Reinvestment Policy

Unit Holders

have the option of requesting

that income due to them on any

income distribution be reinvested in

the Fund. The reinvestments

will be based on the NAV per

Unit (ex-distribution) at the close of the date the income

distribution is

Unit Holders have

the option of requesting that

income due to them on any income distribution be

reinvested in the Fund. The

reinvestments will be based on the

NAV per Unit (ex-distribution) at the close of the date

the income distribution is

declared. Sales charge will not be

Unit Holders have the option of requesting that income due to

them on any income distribution be reinvested in

the Fund. The reinvestments will be based on the NAV per

Unit (ex-distribution) at the close of the date the income distribution is declared. Sales charge will not be imposed on

the income distribution reinvestments.

90

14

declared. Sales charge will not be imposed on

the income distribution

reinvestments.

imposed on the income distribution

reinvestments.

Performance Benchmark

FBMKLCI

FBMSCAP

FBMS

35, 39, 43

Trustee

AmanahRaya

Trustees Berhad

AmanahRaya

Trustees Berhad

AmanahRaya Trustees Berhad

97 - 98

Financial Year End

15th day of April

15th day of January

15th day of June

-

15

Information on the Funds Page FUND

MIDF AMANAH

DYNAMIC FUND

(MADF)

MIDF AMANAH MONEY

MARKET FUND (MAMMF)

MIDF AMANAH

SHARIAH MONEY MARKET FUND

(MASMMF)

(MASMMF has been certified as being Shariah-compliant

by the Shariah Adviser)

Fund Category

Equity

Money Market

Islamic Money Market

47, 51, 54

Fund Type

Growth

Income

Income (Islamic)

47, 51, 54

Investment Objective

To achieve Long Term

capital growth through

investments in equities with

superior growth prospects.

The Fund seeks to

provide investors with a regular income stream

over the short to medium term while maintaining

capital stability.

The Fund seeks to

provide investors with a regular income

stream over the short to medium term that

complies with Shariah requirements whilst maintaining capital

stability.

47, 51, 54

Investment Policy and Strategy

The investment

strategy is to seek Long Term

capital appreciation by

investing in Malaysian equities,

irrespective of their specific type, size or

sector.

Further elaboration of the investment strategy is set out in page 47.

The Fund will invest in

money market instruments and other

short-term debt instruments.

Further elaboration of the investment strategy is set

out in page 51.

The Fund will invest in Islamic money market instruments and other

short-term Islamic debt instruments.

Further elaboration of

the investment strategy is set out in

page 54.

47, 51, 54

16

Asset Allocation

Equities:


Assets: 2% - 30%

Minimum 90% - Deposits,

Money Market Instruments and/or Short-Term Debt Instruments,

all of which have a remaining maturity

period of not more than 365 days.

Up to 10% - Short-Term Debt Instruments which

have a remaining maturity period of more than 365 days but less than 732

days.

Minimum 90% -

Islamic Deposits, Islamic Money Market

Instruments and/or Islamic Short-Term

Debt Instruments, all of which have a

remaining maturity period of not more

than 365 days.

Up to 10% - Islamic Short-Term Debt

Instruments which have a remaining maturity period of

more than 365 days but less than 732

days.

47, 51, 54

Principal Risks

market risk,

stock specific risk and liquidity

risk

credit risk, interest rate

risk and reinvestment risk

credit risk, profit rate risk and reinvestment

risk

31 - 34

Investors’ Profile

Suitable for

investors who are seeking Long Term

capital growth and who can

tolerate a high level of risks

associated with stock market investments.

This Fund is suitable for

Investors who have either a short or medium term

investment horizon; desire a stream of income; and have low risk tolerance.

This Fund is suitable

for Investors who seek regular income that

complies with Shariah requirements with

capital stability; have short to medium-term investment horizon; and have low risk

tolerance.

47, 51, 54

Distribution Policy

The Fund’s distribution

policy will be in line with the

objective of the Fund. The

distributions of income (if any) will be declared

at the end of each financial

year of the Fund.

The Fund’s distribution policy will be in line with

the objective of the Fund. Distribution of income, if any, will be declared at the end of each month

depending on the level of income (if any) generated

by the Fund and at the discretion* of the fund

manager.

* The Manager has the discretion to decide on the

amount to be distributed to the Unit Holders. If the distribution

available is too small or insignificant, the Manager may

choose not to distribute the

The Fund’s

distribution policy will be in line with the

objective of the Fund. Distribution of income, if any, will be declared

at the end of each month depending on the level of income (if any) generated by the

Fund and at the discretion* of the fund

manager.

* The Manager has the discretion to decide on the amount to be distributed to

the Unit Holders. If the distribution available is too

90

17

income as the distribution may not be beneficial to the Unit

Holders as the total cost to be incurred in such distribution may

be higher than the amount available for distribution.

small or insignificant, the Manager may choose not to distribute the income as the

distribution may not be beneficial to the Unit

Holders as the total cost to be incurred in such

distribution may be higher than the amount available

for distribution.

Reinvestment Policy

Unit Holders

have the option of requesting

that income due to them on any

income distribution be

reinvested in the Fund. The

reinvestments will be based on

the NAV per Unit (ex-

distribution) at the close of the date the income

distribution is declared. Sales charge will not be imposed on

the income distribution

reinvestments.

In the absence of written

instructions to the contrary from a Unit Holder, any income distribution will be

reinvested in the Fund. The reinvestments will be

based on the NAV per Unit (ex-distribution) at

the close of the date the income distribution is

declared. Sales charge will not be imposed on the

income distribution reinvestments.

In the absence of

written instructions to the contrary from a

Unit Holder, any income distribution will

be reinvested in the Fund. The

reinvestments will be based on the NAV per Unit (ex-distribution) at the close of the date

the income distribution is declared. Sales charge will not be imposed on the

income distribution reinvestments.

90


FBMKLCI

Maybank Overnight Rate* *The risk profile of the Fund is higher than the performance benchmark and as a result of the higher risk assumed, the Fund is expected to outperform the performance benchmark.

Maybank Overnight Rate* *The risk profile of the Fund is higher than the performance benchmark and as a result of the higher risk assumed, the Fund is expected to outperform the performance benchmark.

47, 51, 54

Trustee

AmanahRaya

Trustees Berhad

AmanahRaya Trustees

Berhad

Maybank Trustees

Berhad

99 – 102

Financial Year End

15th day of

March

15th day of November

15th day of October

-

18

This table describes the charges that you may DIRECTLY incur when you buy or redeem Units of the Funds

FEES AND CHARGES

Page

FUND

MIDF

AMANAH GROWTH

FUND (MAGF)

MIDF AMANAH

STRATEGIC FUND

(MASF)


(MAIF)



Sales Charge*

The sales charge that will be imposed by all the Manager’s distributors are as follows: Direct Sales – Up to 5.00% of the NAV per Unit; IUTA – Up to 5.00% of the NAV per Unit; Tied Agents – Up to 5.00% of the NAV per Unit.



80

Deferred Sales Charge#

Up to 1.50% of the NAV per

Unit at the point of the Unit

Holder’s initial investment if

the investment period is less than 365 days

from the date of purchase of the

Units.

Up to 1.50% of the NAV per Unit at the

point of the Unit Holder’s initial

investment if the investment period is less than 365

days from the date of purchase of the

Units.

Up to 1.50% of the NAV per Unit at the point of the Unit

Holder’s initial investment if the investment period is less than

365 days from the date of purchase of the Units.

81 – 82

Repurchase Charge

Nil

Nil

Nil

81

19

Switching Charge*

Each Unit Holder is

entitled to two (2) free

switching in a calendar year.

For any subsequent switching, a

Unit Holder will incur a

switching charge payable to the Manager for the sum of

RM25 per switch.

Each Unit Holder is entitled to two (2) free switching in a calendar year. For any subsequent switching, a Unit

Holder will incur a switching charge

payable to the Manager for the

sum of RM25 per switch.

Each Unit Holder is entitled to two (2) free switching in a

calendar year. For any subsequent switching, a Unit Holder will incur a switching

charge payable to the Manager for the sum of RM25 per switch.

81

Transfer Fee

A fee of RM50 is payable to

the Manager for each transfer.

A fee of RM50 is

payable to the Manager for each

transfer.

A fee of RM50 is payable to the

Manager for each transfer.

81

MER (%) (based on the latest financial year)

1.74

1.67

1.80

78 – 79

* The Manager reserves the right to waive or reduce the sales charge or switching charge from time to time at its absolute discretion. Investors may also negotiate for a lower sales charge with their preferred distributor, subject to the respective channels’ qualifying criterion. All sales charges will be rounded up to two (2) decimal places and will be retained by the Manager.

# The Manager reserves the right to waive or reduce the deferred sales charge from time to time at its absolute discretion. All deferred sales charges will be rounded up to two (2) decimal places and will be retained by the Manager. Differing sales charge may be levied depending on the distribution channels and the distributor within each distribution channel, subject to the sales charge stipulated above. This is due to the different levels of services provided by each distribution channel and / or the size of the investment undertaken. There are fees and charges involved and investors are advised to consider the fees and charges before investing in the Funds.

20

This table describes the charges that you may DIRECTLY incur when you buy or redeem Units of the Funds

FEES AND CHARGES

Page

FUND

MIDF

AMANAH DYNAMIC

FUND (MADF)

MIDF AMANAH

MONEY MARKET FUND

(MAMMF)

MIDF AMANAH SHARIAH MONEY MARKET FUND

(MASMMF)



Sales Charge*


Nil

Nil

80

Deferred Sales Charge#

Up to 1.50% of

the NAV per Unit at the point

of the Unit Holder’s initial investment if

the investment period is less than 365 days

from the date of purchase of the

Units.

Nil

Nil

81 – 82

Repurchase Charge

Nil

Nil

Nil

81

21

Switching Charge*

Each Unit Holder is

entitled to two (2) free

switching in a calendar year.

For any subsequent switching, a

Unit Holder will incur a

switching charge payable to the Manager for the sum of

RM25 per switch.

Each Unit Holder is entitled to two (2) free switching in a calendar year. For any subsequent switching, a Unit

Holder will incur a switching charge

payable to the Manager for the

sum of RM25 per switch.

Each Unit Holder is entitled to two (2) free switching in a

calendar year. For any subsequent switching, a Unit Holder will incur a switching

charge payable to the Manager for the sum of RM25 per switch.

Units of MASMMF switched to any other Funds within the first year from the date of purchase of those Units are considered redeemed by the Unit Holder and reinvested in the other

Funds.

81

Transfer Fee

A fee of RM50 is payable to

the Manager for each transfer.

A fee of RM50 is

payable to the Manager for each

transfer.

A fee of RM50 is payable to the

Manager for each transfer.

81

MER (%) (based on the latest financial year)

2.25

1.85

0.44

78 – 79

* The Manager reserves the right to waive or reduce the sales charge or switching charge from time to time at its absolute discretion. Investors may also negotiate for a lower sales charge with their preferred distributor, subject to the respective channels’ qualifying criterion. All sales charges will be rounded up to two (2) decimal places and will be retained by the Manager. # The Manager reserves the right to waive or reduce the deferred sales charge from time to time at its absolute discretion. All deferred sales charges will be rounded up to two (2) decimal places and will be retained by the Manager. Differing sales charge may be levied depending on the distribution channels and the distributor within each distribution channel, subject to the sales charge stipulated above. This is due to the different levels of services provided by each distribution channel and / or the size of the investment undertaken. There are fees and charges involved and investors are advised to consider the fees and charges before investing in the Funds.

22

This table describes the charges that you may INDIRECTLY incur when you invest in Units of the Funds

FEES AND CHARGES

Page

FUND

MIDF

AMANAH GROWTH

FUND (MAGF)

MIDF AMANAH

STRATEGIC FUND

(MASF)


(MAIF)



Annual Management Fee*

1.5% per

annum of the NAV of the

Fund (calculated and accrued daily).

1.5% per annum of

the NAV of the Fund (calculated

and accrued daily).

1.5% per annum of the NAV of

the Fund (calculated and accrued daily).

82

Annual Trustee Fee

0.08% per annum of the Fund’s NAV calculated and accrued on a daily.

0.08% per annum of the Fund’s NAV calculated and accrued on a daily basis.

0.08% per annum of the Fund’s NAV calculated and accrued on a daily basis.

82

Fund Expenses

custody cost, commission

paid to brokers, audit fees,

administrative charges such as printing of

annual/interim report, tax

certificates, reinvestment statements, postage and

other services properly

incurred in the administration of the Fund.

custody cost, commission paid to brokers, audit fees,

administrative charges such as

printing of annual/interim

report, tax certificates,

reinvestment statements,

postage and other services properly

incurred in the administration of

the Fund.


administrative charges such as printing of annual/interim report,

tax certificates, reinvestment statements, postage and other

services properly incurred in the administration of the Fund.

82 – 83

* The Manager reserves the right to waive or reduce the annual management fee from time to time at its absolute discretion. There are fees and charges involved and investors are advised to consider the fees and charges before investing in the Funds.

23

This table describes the charges that you may INDIRECTLY incur when you invest in Units of the Funds

FEES AND CHARGES

Page

FUND

MIDF

AMANAH DYNAMIC

FUND (MADF)

MIDF AMANAH

MONEY MARKET FUND

(MAMMF)

MIDF AMANAH SHARIAH MONEY MARKET FUND

(MASMMF)



Annual Management Fee*

1.5% per

annum of the NAV of the

Fund (calculated and accrued daily).

0.5% per annum of

the NAV of the Fund (calculated

and accrued daily).

0.5% per annum of the NAV of

the Fund (calculated and accrued daily).

82

Annual Trustee Fee

0.08% per

annum of the Fund’s NAV

calculated and accrued on a daily basis.

Up to 0.07% per

annum of the NAV of the Fund

(calculated and accrued daily).

Up to 0.07% per annum of the NAV of the Fund subject to a

minimum fee of RM 18,000 per annum (calculated and accrued

daily).

82

Fund Expenses

custody cost, commission

paid to brokers, audit fees,

administrative charges such as printing of

annual/interim report, tax

certificates, reinvestment statements, postage and

other services properly

incurred in the administration of the Fund.


administrative charges such as

printing of annual/interim

report, tax certificates,

reinvestment statements,

postage and other services properly

incurred in the administration of

the Fund.


administrative charges such as printing of annual/interim report,

tax certificates, reinvestment statements, postage and other

services properly incurred in the administration of the Fund.

82 – 83

* The Manager reserves the right to waive or reduce the annual management fee from time to time at its absolute discretion. There are fees and charges involved and investors are advised to consider the fees and charges before investing in the Funds.

24

TRANSACTION DETAILS

Page

FUND

MIDF

AMANAH GROWTH

FUND (MAGF)

MIDF AMANAH

STRATEGIC FUND

(MASF)


(MAIF)



Minimum Initial Investment

RM1,000

RM1,000

RM1,000

88

Minimum Additional Investment

RM100

RM100

RM100

88

Minimum Repurchase

Nil

Nil

Nil

88

Restriction on Frequency of Repurchase

Nil

Nil

Nil

88

Minimum Holdings

100 Units

100 Units

100 Units

88

Payment of Repurchase Proceeds

Repurchase

proceeds will be paid within ten

(10) days of the Manager’s receipt of a request to

repurchase.

Repurchase

proceeds will be paid within ten (10)

days of the Manager’s receipt

of a request to repurchase.

Repurchase proceeds will be

paid within ten (10) days of the Manager’s receipt of a request

to repurchase.

88

Transfer of Units

Units of one Fund may be

transferred from one Unit Holder to another Unit Holder subject

to the Manager’s sole discretion and

to the provisions of

the Deed.

Units of one Fund may be transferred

from one Unit Holder to another

Unit Holder subject to the Manager’s

sole discretion and to the provisions of

the Deed.

Units of one Fund may be transferred from one Unit

Holder to another Unit Holder subject to the Manager’s sole

discretion and to the provisions of the Deed.

88

25

Switching Option

Units Holders may switch Units of one

Fund to units of other funds

managed by the Manager. However,

switching from Shariah-

compliant fund to a

conventional fund is

discouraged especially for Muslim Unit Holders. The

minimum number of Units

per switch is 1,000 Units. There are no restrictions as to frequency or

volume. Switching into new funds will not be allowed

during the initial 6 months from the launch date

of the said funds.


Fund to units of other funds


switching from Shariah-compliant

fund to a conventional fund

is discouraged especially for Muslim Unit Holders. The

minimum number of Units per switch

is 1,000 Units. There are no

restrictions as to frequency or

volume. Switching into new funds will

not be allowed during the initial 6 months from the

launch date of the said funds.

Units Holders may switch Units

of one Fund to units of other funds managed by the

Manager. However, switching from Shariah-compliant fund to

a conventional fund is discouraged especially for Muslim Unit Holders. The

minimum number of Units per switch is 1,000 Units. There are no restrictions as to frequency or volume. Switching into new

funds will not be allowed during the initial 6 months from the


88 – 89

Cooling-Off Period

Six (6)

Business Days commencing from the date

the application for Units is

received by the Manager.

Six (6) Business

Days commencing from the date the

application for Units is received by the

Manager.

Six (6) Business Days

commencing from the date the application for Units is received

by the Manager.

89

26

Deeds of the Funds

The Deed of Trust dated 2

December 1966 as amended by

the Supplemental Deed dated 8

June 1972, the Second

Supplemental Deed dated 17 April 1974, the

Third Supplemental Deed dated 3 October 1991,

the Fourth Supplemental Deed dated 1 April 1992, the

Fifth Supplemental Deed dated 22 October 1993,

the Sixth Supplemental Deed dated 19 May 1994, the

Seventh Supplemental Deed dated 18

December 1998, the

Master Supplemental Deed dated 1

November 2001,the Second

Supplemental Master Deed

dated 31 October 2002,

the Third Supplemental Master Deed

dated 23 August 2007,

the Fourth Supplemental Master Deed

dated 6 November

2008, the Fifth Supplemental Master Deed

dated 18 November 2009

The Deed of Trust dated 1 June 1970 as amended by the Supplemental Deed

dated 17 April 1974, the Second

Supplemental Deed dated 3 October 1991, the Third

Supplemental Deed dated 1 April 1992,

the Fourth Supplemental Deed dated 22 October

1993, the Fifth Supplemental Deed dated 19 May 1994,

the Sixth Supplemental Deed dated 18 December 1998, the Master

Supplemental Deed dated 1 November 2001, the Second

Supplemental Master Deed dated 31 October 2002,

the Third Supplemental

Master Deed dated 23 August 2007,

the Fourth Supplemental

Master Deed dated 6 November 2008,

the Fifth Supplemental

Master Deed dated 18 November 2009,

the Sixth Master Supplemental Deed dated 18 October 2010, the Seventh

Master Supplemental Deed dated 6 June 2013

and the Eighth Master

Supplemental Deed dated 17 December

2013.

The Deed of Trust dated 14

May 1971 as amended by the Supplemental Deed dated 17

April 1974, the Second Supplemental Deed dated 3

October 1991, the Third Supplemental Deed dated 1

April 1992, the Fourth Supplemental Deed dated 22

October 1993, the Fifth Supplemental Deed dated 3

March 1994, the Sixth Supplemental Deed dated 10

May 1994, the Seventh Supplemental Deed dated 18 December 1998, the Eighth Supplemental Deed dated 3 November 2000, the Master Supplemental Deed dated 1 November 2001, the Second Supplemental Master Deed dated 31 October 2002, the Third Supplemental Master

Deed dated 23 August 2007, the Fourth Supplemental Master Deed dated 6 November 2008, the Fifth Supplemental Master

Deed dated 18 November 2009 the Sixth Master Supplemental Deed dated 18 October 2010,

the Seventh Master Supplemental Deed dated 6 June 2013 and the Eighth

Master Supplemental Deed dated 17 December 2013.

-

27

the Sixth Master Supplemental Deed dated 18 October 2010, the Seventh


June 2013 and the Eighth


December 2013.

28

TRANSACTION DETAILS

Page

FUND

MIDF AMANAH

DYNAMIC FUND (MADF)

MIDF AMANAH

MONEY MARKET FUND

(MAMMF)

MIDF AMANAH

SHARIAH MONEY MARKET FUND

(MASMMF)

(MASMMF has been certified as being

Shariah-compliant by the Shariah Adviser)

Minimum Initial Investment

RM1,000

RM1,000

RM1,000

88

Minimum Additional Investment

RM100

RM500

RM500

88

Minimum Repurchase

Nil

Nil

Nil

88

Restriction on Frequency of Repurchase

Nil

Nil

Nil

88

Minimum Holdings

100 Units

1000 Units

1000 Units

88

Payment of Repurchase Proceeds

Repurchase

proceeds will be paid within ten

(10) days of the Manager’s receipt

of a request to repurchase.

Repurchase proceeds will be paid within ten

(10) days of the Manager’s receipt of a request to repurchase.

Repurchase proceeds will be paid within ten

(10) days of the Manager’s receipt of a request to repurchase.

88

Transfer of Units

Units of one Fund may be

transferred from one Unit Holder to

another Unit Holder subject to

the Manager’s sole discretion

and to the

Units of one Fund may be transferred from one Unit Holder to

another Unit Holder subject to the

Manager’s sole discretion and to the

provisions of the Deed.

Units of one Fund may be transferred from one Unit Holder to another Unit Holder subject to

the Manager’s sole discretion and to the


88

29


Switching Option

Units Holders may switch Units of

one Fund to Units of other funds


switching from Shariah-compliant

fund to a conventional fund

is discouraged especially for Muslim Unit Holders. The

minimum number of Units per switch

is 1,000 Units. There are no

restrictions as to frequency or

volume. Switching into new funds will

not be allowed during the initial 6 months from the



Fund to Units of other funds managed by the

Manager. However, switching from

Shariah-compliant fund to a conventional

fund is discouraged especially for Muslim

Unit Holders. The minimum number of Units per switch is

1,000 Units. There are no restrictions as to

frequency or volume. Switching into new

funds will not be allowed during the

initial 6 months from the launch date of the

said funds.


Fund to Units of other funds managed by the

Manager. However, switching from Shariah-

compliant fund to a conventional fund is

discouraged especially for Muslim Unit Holders. The minimum number of Units per switch is

1,000 Units. There are no restrictions as to

frequency or volume. Switching into new

funds will not be allowed during the initial

6 months from the launch date of the said

funds.

88 - 89

Cooling-Off Period

Six (6) Business

Days commencing from the date the

application for Units is received by the Manager.

Six (6) Business Days commencing from the date the application for

Units is received by the Manager.

Six (6) Business Days commencing from the date the application for Units is received by the

Manager.

89

Deeds of the Funds

The Deed of Trust dated 5 May 1976

as amended by The Supplemental

Deed dated 18 March 1987, the

Second Supplemental Deed dated 3

October 1991, the Third

Supplemental Deed dated 1 April 1992, the Fourth

Supplemental Deed dated 22

October 1993, the Fifth Supplemental

The Deed of Trust dated 24 January

1984 as amended by the Supplemental

Deed dated 18 March 1987, the Second

Supplemental Deed dated 3 October 1991,

the Third Supplemental Deed

dated 1 April 1992, the Fourth Supplemental

Deed dated 22 October 1993, the Fifth

Supplemental Deed dated 19 May 1994,

the Sixth Supplemental Deed

The Deed dated 1 April 2004 as amended by

the Supplemental Deed dated 10 October 2007,

the Second Supplemental Deed dated 18 November

2009,the Third Supplemental Deed

dated 18 October 2010, and the Seventh Master

Supplemental Deed dated 6 June 2013.

-

30

Deed dated 19 May 1994, the

Sixth Supplemental Deed dated 18

December 1998, the Master


November 2001, the Second


dated 31 October 2002, the Third Supplemental Master Deed

dated 23 August 2007, the Fourth


dated 6 November 2008, the Fifth Supplemental Master Deed

dated 18 November 2009, the Sixth Master


October 2010, the Seventh Master Supplemental Deed dated 6

June 2013 and the Eighth Master Supplemental Deed dated 17

December 2013.

dated 18 December 1998, the Master

Supplemental Deed dated 1 November 2001, the Second

Supplemental Master Deed dated 31

October 2002, the Third Supplemental

Master Deed dated 23 August 2007, the

Fourth Supplemental Master Deed dated 6 November 2008, the Fifth Supplemental

Master Deed dated 18 November 2009,the

Sixth Master Supplemental Deed dated 18 October 2010, the Seventh

Master Supplemental Deed dated 6 June 2013 and the Eighth Master Supplemental

Deed dated 17 December 2013.

Unit prices and distributions payable, if any, may go down as well as up. Prospective investors should read and understand the contents of this Master Prospectus and, if necessary, should consult their adviser(s). Past performance of the Fund is not an indication of its future performance. For information concerning certain risk factors which should be considered by prospective investors, see “Risk Factors” commencing on page 31. If you have any queries or require further information, please contact our Customer Service Line 03-2173 8488 at anytime during office hours (8.45 a.m. to 5.45 p.m.) from Monday to Friday. Alternatively, you may e-mail your enquiries to [email protected] or visit our group website, http://www.midf.com.my/cms/midfamanah.

31

(4) RISK FACTORS

Prior to making an investment, prospective investors should consider the following risk factors in addition to the other information set out in this Master Prospectus:

General Risks

Risk of Non-Compliance This is the risk of the Manager not complying with internal policies, the Deed, securities law and guidelines, whether by oversight or by omission, or if the Manager acts fraudulently or dishonestly. Non-compliance risk may adversely affect the investment of Unit Holders if the Manager is forced to sell the investments of the fund at a discount to resolve the non-compliance. In order to mitigate this risk, the Manager has imposed stringent internal compliance controls. Loan/Financing Risk In the case of an investor who obtains loan/ financing to invest in a fund, the financing cost may be higher than the gains derived (if any) from investing in the fund. It is important for investors to understand the inherent risks of investing using financing facility which includes the following:

(a) borrowing/financing increases the magnitude for gains as well as losses; (b) an investor’s ability to provide additional collateral (when units are used as collateral)

may be affected should the value of investment falls below a certain level. If the provision of the units is not made within the prescribed time, the investor’s units may be sold to settle the loan/financing amount; and

(c) an investor’s ability to service its installments may be affected by unforeseen circumstances such as the investor’s loss of employment.

Shariah-compliant unit trust fund’s investor is advised to seek for Islamic financing to finance their acquisition.

Inflation Risk This refers to the likelihood of a unit holder’s investments not growing proportionately to the inflation rate resulting in the unit holder’s decreasing purchasing power even though the investment in monetary terms may have increased. This risk can be minimised by investing in securities that can provide positive real rate of return.

Specific Risks Risks related to MAGF

Market Risk Market risk refers to potential losses that may arise from changes in the market prices of the Fund’s investments. The prices of securities that the Fund invests in may fluctuate due to various factors, for example, events or news relating to the general market or economic conditions. Such movements in the prices of securities will cause the prices or NAV of the Units to fluctuate. The Fund may invest in a well-diversified portfolio of securities from different sectors which would help mitigate this risk so that the adverse movement of securities from any one sector would not impact too greatly on the value of the Fund.

Stock Specific Risk Any fluctuation in the value of a particular security may affect the price of Units. The impact is however minimized by the Fund investing in a wide portfolio of investments, thus spreading the element of risk. Liquidity Risk

This is defined as the ease with which a security can be sold at or near its fair value depending on the trading volume of that security in the market. Generally, securities of

32

smaller companies or smaller markets are subject to greater liquidity risk due to their smaller trading volumes, which is mainly due to there being a smaller amount of those securities being issued and being in circulation. If the Fund has a large portfolio of securities that are less liquid, the said securities may be sold at a discount to its fair value as a result of a large redemption of units, which in turn would adversely affect the value of the Fund. To mitigate liquidity risk, the Manager will review and monitor the Fund continuously, and actively manage asset allocations of the Fund. In addition, the Manager will practice prudent liquidity management to enable the Fund to meet short term obligations.

Risks related to MASF Market Risk Market risk refers to potential losses that may arise from changes in the market prices of the Fund’s investments. The prices of securities that the Fund invests in may fluctuate due to various factors, for example, events or news relating to the general market or economic conditions. Such movements in the prices of securities will cause the prices or NAV of the Units to fluctuate. The Fund may invest in a well-diversified portfolio of securities from different sectors which would help mitigate this risk so that the adverse movement of securities from any one sector would not impact too greatly on the value of the Fund.


This is defined as the ease with which a security can be sold at or near its fair value depending on the trading volume of that security in the market. Generally, securities of smaller companies or smaller markets are subject to greater liquidity risk due to their smaller trading volumes, which is mainly due to there being a smaller amount of those securities being issued and being in circulation. If the Fund has a large portfolio of securities that are less liquid, the said securities may be sold at a discount to its fair value as a result of a large redemption of units, which in turn would adversely affect the value of the Fund. To mitigate liquidity risk, the Manager will review and monitor the Fund continuously, and actively manage asset allocations of the Fund. In addition, the Manager will practice prudent liquidity management to enable the Fund to meet short term obligations.

Risks related to MAIF



This is defined as the ease with which a security can be sold at or near its fair value depending on the trading volume of that security in the market. Generally, securities of smaller companies or smaller markets are subject to greater liquidity risk due to their smaller trading volumes, which is mainly due to there being a smaller amount of those securities being issued and being in circulation. If the Fund has a large portfolio of securities that are less liquid, the said securities may be sold at a discount to its fair value as a result of a large

33

redemption of units, which in turn would adversely affect the value of the Fund. To mitigate liquidity risk, the Manager will review and monitor the Fund continuously, and actively manage asset allocations of the Fund. In addition, the Manager will practice prudent liquidity management to enable the Fund to meet short term obligations.

Reclassification of Shariah Status Risk This risk refers to the risk that the currently held Shariah-compliant securities in the portfolio of Islamic funds may be reclassified to be Shariah non-compliant in the periodic review of the securities by the SACSC or the Shariah Adviser. If this occurs, the value of the Fund may be adversely affected where the Manager will take the necessary steps to dispose of such securities in accordance with SACSC’s and/or Shariah Adviser’s advice.

Risks related to MADF



This is defined as the ease with which a security can be sold at or near its fair value depending on the trading volume of that security in the market. Generally, securities of smaller companies or smaller markets are subject to greater liquidity risk due to their smaller trading volumes, which is mainly due to there being a smaller amount of those securities being issued and being in circulation. If the Fund has a large portfolio of securities that are less liquid, the said securities may be sold at a discount to its fair value as a result of a large redemption of units, which in turn would adversely affect the value of the Fund. To mitigate liquidity risk, the Manager will review and monitor the Fund continuously, and actively manage asset allocations of the Fund. In addition, the Manager will practice prudent liquidity management to enable the Fund to meet short term obligations.

Risks related to MAMMF Credit Risk

This refers to the possibility that an issuer may not be able to make timely interest/profit or principal payments. A default in the payment of interest/profit and principal will adversely affect the value of the Fund. However, this risk can be minimised through investing in instruments that have a minimum rating of BBB by the RAM or other local rating agencies while employing a portfolio diversification strategy. Any downgrading of a particular instrument below the minimum rating will either be liquidated or scrutinised for its creditworthiness.

Interest Rate Risk The risk refers to the effect of interest rate changes on the market value of a bond portfolio. In the event of rising interest rates, bond prices will fall and vice versa, thus affecting the NAV of the Fund. However, investors should be aware that should the Fund hold a bond till maturity, such price fluctuations would dissipate as it approaches maturity, and thus the growth of the NAV shall not be affected at maturity. In order to mitigate interest rates exposure of the Fund, the Manager will actively manage the duration of the bond portfolio.

34

Reinvestment Risk This is a risk that future proceeds (profit and/or capital) are reinvested at a lower potential profit rate. Reinvestment risk is especially evident during periods of falling interest rates where the coupon/profit payments are reinvested at less than the yield to maturity (actual profit rate) at the time of purchase.

Risks related to MASMMF

Credit Risk This refers to the possibility that an issuer may not be able to make timely profit or principal payments. A default in the payment of profit and principal will adversely affect the value of the Fund. However, this risk can be minimised through investing in instruments that have a minimum rating of BBB by the RAM or other local rating agencies while employing a portfolio diversification strategy. Any downgrading of a particular instrument below the minimum rating will either be liquidated or scrutinised for its creditworthiness.

Profit Rate Risk The risk refers to the effect of profit rate changes on the market value of a sukuk portfolio. In the event of rising profit rates, sukuk prices will fall and vice versa, thus affecting the NAV of the Fund. However, should the Fund hold a sukuk till maturity, such price fluctuations would dissipate as it approaches maturity, and thus the growth of the NAV shall not be affected at maturity. In order to mitigate profit rates exposure of the Fund, the Manager will actively manage the duration of the sukuk portfolio.

Reinvestment Risk This is a risk that future proceeds (profit and/or capital) are reinvested at a lower potential profit rate. Reinvestment risk is especially evident during periods of falling profit rates where the coupon/profit payments are reinvested at less than the yield to maturity (actual profit rate) at the time of purchase.

35

(5) INFORMATION ON THE FUNDS MIDF AMANAH GROWTH FUND (MAGF) Type of Fund : Income and Growth Category of Fund : Equity Investment Objective of MAGF

The investment objective of the Fund is to achieve Long Term capital growth through investments in large, well established companies.

Note: Any material changes to the investment objective of the Fund would require the Unit

Holders’ approval. Investors’ Profile

MAGF is suitable for investors who are seeking Long Term capital growth and are prepared to assume a high level of stock market risks

Investment Policy and Strategy The investment strategy is to seek Long Term capital appreciation by investing in shares of well established, high growth companies.

The overall investment strategy for the Fund focuses on implementing appropriate asset allocation and securities selection based on the prevailing investment outlook at that time. In other words, the Manager aims to employ the optimal combination of asset allocation and securities selection strategies for the Fund at any point of time. The Manager adopts a “Top Down” approach to asset allocation and a “Bottom Up” approach to securities selection.

Asset allocation decisions are arrived at after assessing the international and local economic and political environment as well as all other relevant factors. As for securities selection, the Manager uses various valuation yardsticks to value equities. Depending on the company’s business activity, sector characteristics and stage of economic cycle, some or all of these yardsticks may be used to value the equities. The stock selection strategy also involves identifying when changes occur in a company.

Asset Allocation

Equities: 70% - 98% Cash In Bank and/or Liquid Assets: 2% - 30%


FBMKLCI^ (^Can be obtained from the Bursa Malaysia website: www.bursamalaysia.com)

Risk Management Strategies

The Manager will utilise asset allocation to mitigate the overall investment risk to the Fund. Asset allocation allows for strategic switching of assets to protect the overall value of the Fund when necessary. Sector selection on the other hand provides the opportunity to diversify investment risk within an asset class. Furthermore, for equities, investment in any one stock is normally not more than 5% to 10% of the respective Fund as a matter of risk diversification.

Temporary Defensive Measures The Manager may take temporary defensive positions that may be inconsistent with the Fund’s asset allocation in attempting to respond to adverse economic, political or any other market conditions. In such circumstances, the Manager may reallocate the Fund’s equity investments into other asset classes such as cash in bank and/or liquid assets.

36

Gearing Policy The Fund shall not borrow cash or other assets (including the borrowing of securities) to finance the activities of the Fund or lend any of its cash or investments.

Permitted Investments

Unless otherwise prohibited by the relevant authorities or any relevant law and provided always that there are no inconsistencies with the objective of the Fund, MAGF may invest in the following: 1. securities of companies listed on the Bursa Malaysia; 2. securities listed on foreign stock exchanges permitted by the SC; 3. unlisted securities which have been approved by the SC for listing and quotation on

the Bursa Malaysia and which are offered directly by the company approved for listing by way of private placements or on a tender basis;

4. Malaysian Government Securities, Treasury Bills, Bank Negara Malaysia Certificates and Government Investment Certificates;

5. Malaysian currency balances in hand, Malaysian currency deposits with commercial banks, finance companies, investment banks and Bank Islam Malaysia Berhad, including Negotiable Certificates of Deposits and placements of money at call with investment bank;

6. cagamas bonds, bankers’ acceptances, unlisted loan stocks and corporate bonds traded in the money market and either bank guaranteed or at least rated BBB by an approved rating agency and private debt securities which are rated at least BBB by an approved rating agency;

7. units or shares in other collective investment schemes; and 8. such other kinds of investments as may be permitted by the SC from time to time. .

Investment Restrictions and Limits The Fund is subject to the following investment restrictions:

(a) Spread of investment

(i) The value of the Fund’s investment of the share capital of any single issuer must not exceed 10% of the Fund’s NAV.

(ii) The value of the Fund’s investment of the securities of, and the securities relating to, any single issuer must not exceed 15% of the Fund’s NAV.

(iii) The value of the Fund’s placement in deposits with any single institution must not

exceed 20% of the Fund’s NAV.

(iv) The aggregate value of the Fund’s investment of the securities and deposits issued by or placed with any single issuer/institution must not exceed 25% of the Fund’s NAV.

(v) The value of the Fund’s investments in units or shares of any collective investment

scheme must not exceed 20% of the Fund’s NAV.

(b) Spread on group of companies

(i) Subject of clause b (ii) below, the value of the Fund’s holding of the securities of, and the securities relating to, any group of companies should not exceed 20% of the Fund’s NAV.

(ii) The value of the Fund’s holding of the securities of, and the securities relating to, any group of companies may exceed 20% of the Fund’s NAV provided there are acceptable reasons for exceeding the limit. In this regard, the Manager must notify the Trustee and the SC of the reasons for exceeding the limit immediately. Where the reasons are not considered satisfactory, the Trustee and/or the SC may direct the affected Fund to comply strictly with clause b (i).

37

(c) Concentration of investment

(i) The Fund’s holding of any class of securities of any single issuer must not exceed

10% of the securities issued.

(d) General

(i) The value of the Fund’s holding of securities that are not traded in or under the rules of an Eligible Market must not exceed 10% of the NAV of the Fund. This limit is not applicable to the Fund’s holding of securities not listed or quoted on a stock exchange but have been approved for such listing or quotation and offered directly to the Fund by the issuer.

(ii) The Fund’s net market exposure owing to its futures contracts must have market exposure not exceeding the NAV of the Fund. The Fund may use derivative instruments to hedge currency and equity exposure.

(iii) In relation to Item (a)(v) under Investment Restrictions and Limits mentioned above,

• the collective investment scheme has to be regulated and registered as well as authorised or approved by the relevant regulatory authority in its home jurisdiction;

• the investments in collective investment schemes must operate on the principle of prudent spread of risk and comply with the general investment principles and/or requirements of the Guidelines; and

• There must not be any cross-holding between the Fund and the collective investment schemes.

The above stated limits and restrictions shall be complied with at all times based on the most up-to-date value of the Fund’s investments and instruments. However, a 5% allowance in excess of any limits or restrictions may be permitted where the limit or restriction is breached through the appreciation or depreciation in value of the NAV of the Fund (as a result of an appreciation or depreciation in value of investments or as a result of the repurchase of Units or payment made from the Fund). Once the relevant limit is breached, no further acquisitions of the particular securities involved shall be made and the Manager should, within a reasonable period of not more than three (3) months from the date of the breach take all necessary steps and actions to rectify the breach.

There are no restrictions and limits imposed on securities or instruments issued or guaranteed by the Malaysian government or Bank Negara Malaysia.

Bases of Valuation Of Investments

(i) Listed securities (other than fixed income/sukuk) – any such securities will be valued based on the last done market price.

(ii) Unlisted securities – valuation is based on the fair value of an instrument estimated by discounting the future cash stream to its present value using the prevailing (current) market rate that reflects the risk of the issuer. Unlisted securities will be valued once a year or as and when the Manager deems appropriate and the valuation shall be verified by the Auditors and approved by the Trustee. For unlisted securities that have been approved for listing, the valuation is based on the “offer price” paid by the Fund.

(iii) Listed and unlisted fixed income securities/sukuk – for listed fixed income

securities/sukuk, the last traded prices quoted on a recognised exchange will be used. In the case of unlisted fixed income securities/sukuk, such investments will be valued on a daily basis using fair value prices quoted by a bond pricing agency registered with the SC. If the Manager is of the view that the price quoted by the bond pricing agency differs from the market price by more than 20 basis points, the

38

Manager may use the market price, provided that the Manager record the basis for not using the bond pricing agency price, obtain the necessary internal approvals for not using the bond pricing agency price and keep an audit trail of all the decisions and basis for adopting the market yield.

(iv) Suspended securities – will be valued at their suspended price unless there is

conclusive evidence to indicate that the value of such shares have gone below the suspended price, whereupon their value will be ascertained in a manner as agreed upon by the Manager and Trustee, and verified by the Auditors.

(v) Cash in bank and/or deposits – the value of such investments which are cash in bank

and/or deposits placed with financial institutions and banks bills shall be determined each day by reference to their nominal values and the accrued income or profit thereon for the relevant period.

(vi) Units in the other collective investment schemes – will be valued based on the last

published repurchase price. (vii) Futures and options – all futures contracts and options will be marked to market at

the end of each trading day.

39

MIDF AMANAH STRATEGIC FUND (MASF) Type of Fund : Smallcap Category of Fund : Equity Investment Objective of MASF

The investment objective of the Fund is to achieve Long Term capital growth through investments in smaller, high growth companies.



MASF is suitable for investors who are seeking Long Term capital growth and are prepared to take on a higher level of risk associated with investment in small capitalised stocks.

Investment Policy and Strategy The investment strategy is to seek Long Term capital appreciation by investing in shares of smaller, high growth companies.

The overall investment strategy for the Fund focuses on implementing appropriate asset allocation and securities selection based on the prevailing investment outlook at that time. In other words, the Manager aims to employ the optimal combination of asset allocation and securities selection strategies for the Fund at any point of time. The Manager adopts a “Top Down” approach to asset allocation and a “Bottom Up” approach to securities selection.


Asset Allocation



FBMSCAP^ (^Can be obtained from the Bursa Malaysia website: www.bursamalaysia.com)



Temporary Defensive Measures

The Manager may take temporary defensive positions that may be inconsistent with the Fund’s asset allocation in attempting to respond to adverse economic, political or any other market conditions. In such circumstances, the Manager may reallocate the Fund’s equity investments into other asset classes such as cash in bank and/or liquid assets.

Gearing Policy

The Fund shall not borrow cash or other assets (including the borrowing of securities) to finance the activities of the Fund or lend any of its cash or investments.

40

Permitted Investments Unless otherwise prohibited by the relevant authorities or any relevant law and provided always that there are no inconsistencies with the objective of the Fund, MASF may invest in the following:

1. securities of companies listed on the Bursa Malaysia; 2. Units of unrelated property trust funds listed on the Bursa Malaysia; 3. securities listed on foreign stock exchanges permitted by the SC; 4. unlisted securities which have been approved by the SC for listing and quotation on



6. Malaysian currency balances in hand, Malaysian currency deposits with commercial banks, finance companies, investment banks and Bank Islam Malaysia Berhad, including Negotiable Certificates of Deposits and placements of money at call with merchant banks;

7. cagamas bonds, bankers’ acceptances, unlisted loan stocks and corporate bonds traded in money market and either bank guaranteed or at least rated BBB by an approved rating agency and private debt securities which are rated at least BBB by an approved rating agency;

8. units or shares in other collective investment schemes; and 9. such other kinds of investments as may be permitted by the SC from time to time.

Investment Restrictions and Limits

The Fund is subject to the following investment restrictions:







(v) The value of the Fund’s investments in units or shares of any collective investment scheme must not exceed 20% of the Fund’s NAV.


(i) Subject of clause b (ii) below, the value of the Fund’s holding of the securities of, and

the securities relating to, any group of companies should not exceed 20% of the Fund’s NAV.


41


(i) The Fund’s holding of any class of securities of any single issuer must not exceed 10% of the securities issued.

(d) General

(i) The value of the Fund’s holding of securities that are not traded in or under the rules

of an Eligible Market must not exceed 10% of the NAV of the Fund. This limit is not applicable to the Fund’s holding of securities not listed or quoted on a stock exchange but have been approved for such listing or quotation and offered directly to the Fund by the issuer.












securities/sukuk, the last traded prices quoted on a recognised exchange will be used. In the case of unlisted fixed income securities/sukuk, such investments will be valued on a daily basis using fair value prices quoted by a bond pricing agency registered with the SC. If the Manager is of the view that the price quoted by the bond pricing agency differs from the market price by more than 20 basis points, the Manager may use the market price, provided that the Manager record the basis for not using the bond pricing agency price, obtain the necessary internal approvals for

42

not using the bond pricing agency price and keep an audit trail of all the decisions and basis for adopting the market yield.






published repurchase price. (vii) Futures and options – all futures contracts and options will be marked to market at


43

MIDF AMANAH ISLAMIC FUND (MAIF) Type of Fund : Growth (Islamic) Category of Fund : Equity Investment Objective of MAIF

The investment objective of the Fund is to achieve Long Term capital growth through investments which conform with the principles of the Shariah.



MAIF is suitable for investors who are seeking Long Term capital growth, who wish their investments to be in line with Shariah requirements and who can tolerate high level of risks.

Investment Policy and Strategy The investment strategy is to seek Long Term capital appreciation by investing in investment instruments that comply with Shariah requirements. The overall investment strategy for the Fund focuses on implementing appropriate asset allocation and securities selection based on the prevailing investment outlook at that time. In other words, the Manager aims to employ the optimal combination of asset allocation and securities selection strategies for the Fund at any point of time. The Manager adopts a “Top Down” approach to Shariah-compliant asset allocation and a “Bottom Up” approach to Shariah-compliant securities selection.

Shariah-compliant asset allocation decisions are arrived at after assessing the international and local economic and political environment as well as all other relevant factors. As for Shariah-compliant securities selection, the Manager uses various valuation yardsticks to value Shariah-compliant equities. Depending on the company’s business activity, sector characteristics and stage of economic cycle, some or all of these yardsticks may be used to value the Shariah-compliant equities. The Shariah-compliant stock selection strategy also involves identifying when changes occur in a company.

Asset Allocation

Shariah-Compliant Equities: 70% - 98% Cash In Bank and/or Islamic Liquid Assets: 2% - 30%


FBMS^ (^Can be obtained from the Bursa Malaysia website: www.bursamalaysia.com)


The Manager will utilise asset allocation to mitigate the overall investment risk to the Fund. Asset allocation allows for strategic switching of assets to protect the overall value of the Fund when necessary. Sector selection on the other hand provides the opportunity to diversify investment risk within an asset class. Furthermore, for Shariah-compliant equities, investment in any one Shariah-compliant stock is normally not more than 5% to 10% of the respective Fund as a matter of risk diversification.


The Manager may take temporary defensive positions that may be inconsistent with the Fund’s asset allocation in attempting to respond to adverse economic, political or any other market conditions. In such circumstances, the Manager may reallocate the Fund’s Shariah-compliant equity investments into other asset classes such as cash in bank and/or Islamic liquid assets.

44

Gearing Policy The Fund shall not borrow cash/apply for financing or other assets (including the borrowing/financing of Shariah-compliant securities) to finance the activities of the Fund or lend any of its cash or investments.


Unless otherwise prohibited by the relevant authorities or any relevant law and provided always that there are no inconsistencies with the objective of the Fund, MAIF may invest in the following:

1. Shariah-compliant securities of companies listed on the Bursa Malaysia. In

compliance with Shariah requirements, Shariah-compliant securities of companies whose activities are not contrary to the Shariah are classified as Shariah-compliant securities. Conversely, securities are classified as Shariah non-compliant if the companies are involved in the following core activities: financial services based on riba (interest); gambling and gaming; manufacturing or sale of non-halal products or related products; conventional insurance; entertainment activities that are non-permissible according to the Shariah; manufacturing 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 the Shariah and the Shariah-compliance criteria of the SC.

2. units of unrelated Shariah-compliant property trust funds listed on the Bursa Malaysia;

3. Shariah-compliant securities listed on foreign stock exchanges permitted by the SC; 4. Government Investment Issues; 5. unlisted Shariah-compliant securities which have been approved by the SC for listing

and quotation on the Bursa Malaysia and which are offered directly by the company approved for listing by way of private placements or on a tender basis and as approved by the SACSC and/or the Shariah Adviser;

6. cash in bank and Islamic deposits with licensed financial institutions; 7. Islamic papers that are traded in the Islamic money market either bank guaranteed or

at least rated BBB by an approved rating agency and sukuk which are rated at least BBB by an approved rating agency;

8. units or shares in other Shariah-compliant collective investment schemes; and 9. any other Shariah-compliant investment instruments as approved by the SACSC

and/or the Shariah Adviser. .

Investment Restrictions and Limits The Fund is subject to the following investment restrictions:



(ii) The value of the Fund’s investment of the Shariah-compliant securities of, and the Shariah-compliant securities relating to, any single issuer must not exceed 15% of the Fund’s NAV.

(iii) The value of the Fund’s placement in Islamic deposits with any single institution must

not exceed 20% of the Fund’s NAV.

(iv) The aggregate value of the Fund’s investment of the Shariah-compliant securities and Islamic deposits issued by or placed with any single issuer/institution must not exceed 25% of the Fund’s NAV.


45


(i) Subject of clause b (ii) below, the value of the Fund’s holding of the Shariah-

compliant securities of, and the Shariah-compliant securities relating to, any group of companies should not exceed 20% of the Fund’s NAV.

(ii) The value of the Fund’s holding of the Shariah-compliant securities of, and the Shariah-compliant securities relating to, any group of companies may exceed 20% of the Fund’s NAV provided there are acceptable reasons for exceeding the limit. In this regard, the Manager must notify the Trustee and the SC of the reasons for exceeding the limit immediately. Where the reasons are not considered satisfactory, the Trustee and/or the SC may direct the affected Fund to comply strictly with clause b (i).


(i) The Fund’s holding of any class of Shariah-compliant securities of any single issuer

must not exceed 10% of the Shariah-compliant securities issued.

(d) General

(i) The value of the Fund’s holding of Shariah-compliant securities that are not traded in or under the rules of an Eligible Market must not exceed 10% of the NAV of the Fund. This limit is not applicable to the Fund’s holding of Shariah-compliant securities not listed or quoted on a stock exchange but have been approved for such listing or quotation and offered directly to the Fund by the issuer.

(ii) The Fund’s net market exposure owing to its Islamic futures contracts must have market exposure not exceeding the NAV of the Fund. The Fund may use Islamic derivative instruments to hedge currency and Shariah-compliant equity exposure.





The above stated limits and restrictions shall be complied with at all times based on the most up-to-date value of the Fund’s investments and instruments. However, a 5% allowance in excess of any limits or restrictions may be permitted where the limit or restriction is breached through the appreciation or depreciation in value of the NAV of the Fund (as a result of an appreciation or depreciation in value of investments or as a result of the repurchase of Units or payment made from the Fund). Once the relevant limit is breached, no further acquisitions of the particular Shariah-compliant securities involved shall be made and the Manager should, within a reasonable period of not more than three (3) months from the date of the breach take all necessary steps and actions to rectify the breach.

There are no restrictions and limits imposed on Shariah-compliant securities or instruments issued or guaranteed by the Malaysian government or Bank Negara Malaysia.

46


(i) Listed Shariah-compliant securities (other than sukuk) – any such Shariah-compliant securities will be valued based on the last done market price.

(ii) Unlisted Shariah-compliant securities – valuation is based on the fair value of an instrument estimated by discounting the future cash stream to its present value using the prevailing (current) market rate that reflects the risk of the issuer. Unlisted Shariah-compliant securities will be valued once a year or as and when the Manager deems appropriate and the valuation shall be verified by the Auditors and approved by the Trustee. For unlisted Shariah-compliant securities that have been approved for listing, the valuation is based on the “offer price” paid by the Fund.

(iii) Listed and unlisted sukuk – for listed sukuk, the last traded prices quoted on a

recognised exchange will be used. In the case of unlisted sukuk, such investments will be valued on a daily basis using fair value prices quoted by a bond pricing agency registered with the SC. If the Manager is of the view that the price quoted by the bond pricing agency differs from the market price by more than 20 basis points, the Manager may use the market price, provided that the Manager record the basis for not using the bond pricing agency price, obtain the necessary internal approvals for not using the bond pricing agency price and keep an audit trail of all the decisions and basis for adopting the market yield.

(iv) Suspended Shariah-compliant securities – will be valued at their suspended price

unless there is conclusive evidence to indicate that the value of such shares have gone below the suspended price, whereupon their value will be ascertained in a manner as agreed upon by the Manager and Trustee, and verified by the Auditors.

(v) Cash in bank and/or Islamic deposits – the value of such investments which are cash

in bank and/or Islamic deposits placed financial institutions and banks bills shall be determined each day by reference to their nominal values and the accrued income or profit thereon for the relevant period.

(vi) Units in the other Shariah-compliant collective investment schemes – will be valued

based on the last published repurchase price. (vii) Islamic futures and options – all Islamic futures contracts and options will be marked

to market at the end of each trading day.

47

MIDF AMANAH DYNAMIC FUND (MADF) Type of Fund : Growth Category of Fund : Equity Investment Objective of MADF

The investment objective of the Fund is to achieve Long Term capital growth through investments in equities with superior growth prospects.



MADF is suitable for investors who are seeking Long Term capital growth and who can tolerate a high level of risks associated with stock market investments.

Investment Policy and Strategy The investment strategy is to seek Long Term capital appreciation by investing in Malaysian equities, irrespective of their specific type, size or sector. The overall investment strategy for the Fund focuses on implementing appropriate asset allocation and securities selection based on the prevailing investment outlook at that time. In other words, the Manager aims to employ the optimal combination of asset allocation and securities selection strategies for the Fund at any point of time. The Manager adopts a “Top Down” approach to asset allocation and a “Bottom Up” approach to securities selection.


Asset Allocation



FBMKLCI^ (^Can be obtained from the Bursa Malaysia website: www.bursamalaysia.com)




The Manager may take temporary defensive positions that may be inconsistent with the Fund’s asset allocation in attempting to respond to adverse economic, political or any other market conditions. In such circumstances, the Manager may reallocate the Fund’s equity investments into other asset classes such as cash in bank and/or liquid assets.

Gearing Policy


48

Permitted Investments Unless otherwise prohibited by the relevant authorities or any relevant law and provided always that there are no inconsistencies with the objective of the Fund, MADF may invest in the following:

1. securities of companies listed on the Bursa Malaysia; 2. units of unrelated property trust funds listed on the Bursa Malaysia; 3. securities listed on foreign stock exchanges permitted by the SC; 4. unlisted securities which have been approved by the SC for listing and quotation on



6. Malaysian currency balances in hand, Malaysian currency deposits with commercial banks, finance companies, investment banks and Islamic Financial Institutions, including Negotiable Certificates of Deposits and placements of money at call with investment banks;

7. cagamas bonds, bankers’ acceptances, unlisted loan stocks and corporate bonds traded in money market and either bank guaranteed or at least rated BBB by an approved rating agency and sukuk which are rated at least BBB by an approved rating agency;

8. units or shares in other collective investment schemes; and 9. such other kinds of investments as may be permitted by the SC from time to time


The Fund is subject to the following investment restrictions:









(i) Subject of clause b (ii) below, the value of the Fund’s holding of the securities of, and

the securities relating to, any group of companies should not exceed 20% of the Fund’s NAV.


49


(i) The Fund’s holding of any class of securities of any single issuer must not exceed 10% of the securities issued.

(d) General

(i) The value of the Fund’s holding of securities that are not traded in or under the rules

of an Eligible Market must not exceed 10% of the NAV of the Fund. This limit is not applicable to the Fund’s holding of securities not listed or quoted on a stock exchange but have been approved for such listing or quotation and offered directly to the Fund by the issuer.









(i) Listed securities (other than fixed income / sukuk) – any such securities will be valued based on the last done market price.



securities/sukuk, the last traded prices quoted on a recognised exchange will be used. In the case of unlisted fixed income securities/sukuk, such investments will be valued on a daily basis using fair value prices quoted by a bond pricing agency registered with the SC. If the Manager is of the view that the price quoted by the bond pricing agency differs from the market price by more than 20 basis points, the Manager may use the market price, provided that the Manager record the basis for

50

not using the bond pricing agency price, obtain the necessary internal approvals for not using the bond pricing agency price and keep an audit trail of all the decisions and basis for adopting the market yield.



(vi) Cash in bank and/or deposits – the value of such investments which are cash in bank


(vii) Units in the other collective investment schemes – will be valued based on the last

published repurchase price. (viii) Futures and options – all futures contracts and options will be marked to market at


51

MIDF AMANAH MONEY MARKET FUND (MAMMF) Type of Fund : Income Category of Fund : Money Market Investment Objective of MAMMF

The Fund seeks to provide investors with a regular income stream over the short to medium term while maintaining capital stability Note: Any material changes to the investment objective of the Fund would require the Unit


This Fund is suitable for Investors who: • have either a short or medium term investment horizon; • desire a stream of income; and • have low risk tolerance.

Investment Policy and Strategy The Fund will invest in money market instruments and other short-term debt instruments. The Fund will invest at least 90% of its NAV in deposits, money market instruments and/or short-term debt instruments, all of which have a remaining maturity period of not more than 365 days. Up to 10% of the Fund’s NAV will be invested in short-term debt instruments which have a remaining maturity period of more than 365 days but less than 732 days. The minimum credit rating of money market instruments and short-term debt instruments that the Fund shall invest in is at least “BBB” for long-term instruments or “P2” for short-term papers. Should the ratings be downgraded below the stated minimum credit rating, the Manager shall dispose of the instruments/ papers within the reasonable time frame taking into consideration of market condition and factors at that point of time. The Fund will be actively managed.

Asset Allocation

Minimum 90% - Deposits, Money Market Instruments and/or Short-Term Debt Instruments, all of which have a remaining maturity period of not more than 365 days.

Up to 10% - Short-Term Debt Instruments which have a remaining maturity period of more than 365 days but less than 732 days.


Maybank Overnight Rate (information on the benchmark can be obtained from http://www.maybank2u.com.my).

Note: The risk profile of the Fund is higher than the performance benchmark and as a result of the higher risk assumed, the Fund is expected to outperform the performance benchmark.


The Manager will utilise asset allocation to mitigate the overall investment risk to the Fund. Asset allocation allows for strategic switching of assets to protect the overall value of the Fund when necessary. Sector selection on the other hand provides the opportunity to diversify investment risk within the asset class. For fixed income /sukuk investments, diversification of maturity dates, coupon/profit profiles and a minimum credit rating of BBB of the instruments help to mitigate the investment risk.

52

Temporary Defensive Measures The Manager may take temporary defensive positions that may be inconsistent with the Fund’s asset allocation in attempting to respond to adverse economic, political or any other market conditions. In such circumstances, the Manager may reallocate the Fund’s fixed income securities investments into other asset classes such as cash in bank and/or liquid assets.

Gearing Policy



Unless otherwise prohibited by the relevant authorities or any relevant law and provided always that there are no inconsistencies with the objective of the Fund, MAMMF may invest in the following:

1. money market instruments; 2. debentures; 3. private debt securities; 4. cash; 5. placement of deposits with financial institutions; and 6. any other kinds of investments as may be permitted by the SC from time to time.


1. The value of the Fund’s holding in permitted investments must not be less than 90%

of the Fund’s NAV; 2. The value of the Fund’s holdings in permitted investments which have a remaining

maturity period of not more than 365 days must not be less than 90% of the Fund’s NAV;

3. The value of the Fund’s holding in permitted investments which have a remaining maturity period of more than 365 days but fewer than 732 days must not exceed 10% of the Fund’s NAV;

4. The value of the Fund’s investments in debentures and money market instruments issued by any single issuer must not exceed 20% of the Fund’s NAV;

5. The value of the Fund’s investments in debentures and money market instruments issued by any single issuer may be increased to 30% if the debentures are rated by any domestic or global rating agency to be of the best quality and offer highest safety for timely payment of interest and principal;

6. The value of the Fund’s placement in deposits with any single financial institution must not exceed 20% of the Fund’s NAV;

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

8. The Fund’s investments in debentures must not exceed 20% of the securities issued by any single issuer;

9. The Fund’s investments in money market instruments must not exceed 20% of the instruments issued by any single issuer; and

10. There will be no restriction or limits for securities issued or guaranteed by the Malaysian Government or Bank Negara Malaysia.


53





securities/sukuk, the last traded prices quoted on a recognised exchange will be used. In the case of unlisted fixed income securities/sukuk, such investments will be valued on a daily basis using fair value prices quoted by a bond pricing agency registered with the SC. If the Manager is of the view that the price quoted by the bond pricing agency differs from the market price by more than 20 basis points, the Manager may use the market price, provided that the Manager record the basis for not using the bond pricing agency price, obtain the necessary internal approvals for not using the bond pricing agency price and keep an audit trail of all the decisions and basis for adopting the market yield.




and/or deposits placed with other financial institutions and banks bills shall be determined each day by reference to their nominal values and the accrued income or profit thereon for the relevant period.


published repurchase price. (vii) Futures and options – all futures contracts and options will be marked to market at the

end of each trading day.

Investment in the Fund is not the same as placement in a deposit with a financial institution. There are risks involved and investors should rely on their own evaluation to assess the merits and risks when investing in the Fund.

54

MIDF AMANAH SHARIAH MONEY MARKET FUND (MASMMF) Type of Fund : Income (Islamic) Category of Fund : Islamic Money Market Investment Objective of MASMMF

The Fund seeks to provide investors with a regular income stream over the short to medium term that complies with Shariah requirements whilst maintaining capital stability.



This Fund is suitable for Investors who: • seek regular income that complies with Shariah requirements with capital stability; • have short to medium-term investment horizon; and • have low risk tolerance.

Investment Policy and Strategy The Fund will invest in Islamic money market instruments and other short-term Islamic debt instruments.

The Fund will invest at least 90% of its NAV in Islamic deposits, Islamic money market instruments or Islamic short-term debt instruments, all of which have a remaining maturity period of not more than 365 days. Up to 10% of the Fund’s NAV will be invested in Islamic short-term debt instruments which have a remaining maturity period of more than 365 days but less than 732 days. The minimum credit rating of Islamic money market instruments and Islamic short-term debt instruments that the Fund shall invest in is at least “BBB” for long-term instruments or “P2” for short-term papers. Should the ratings be downgraded below the stated minimum credit rating, the Manager shall dispose off the instruments/ papers within the reasonable time frame taking into consideration of market condition and factors at that point of time. The Fund will be actively managed.

Asset Allocation

Minimum 90% - Islamic Deposits, Islamic Money Market Instruments and/or Islamic Short-Term Debt Instruments, all of which have a remaining maturity period of not more than 365 days.

Up to 10% - Islamic Short-Term Debt Instruments which have a remaining maturity period of more than 365 days but less than 732 days.


Maybank Overnight Rate (information on the benchmark can be obtained from http://www.maybank2u.com.my).

Note: The risk profile of the Fund is higher than the performance benchmark and as a result of the higher risk assumed, the Fund is expected to outperform the performance benchmark.


The Manager will utilise asset allocation to mitigate the overall investment risk to the Fund. Asset allocation allows for strategic switching of assets to protect the overall value of the Fund when necessary. Sector selection on the other hand provides the opportunity to diversify investment risk within an asset class. For sukuk investments, diversification of maturity dates, profit profiles and a minimum credit rating of BBB of the instruments help to mitigate the investment risk.

55

Temporary Defensive Measures The Manager may take temporary defensive positions that may be inconsistent with the Fund’s asset allocation in attempting to respond to adverse economic, political or any other market conditions. In such circumstances, the Manager may reallocate the Fund’s sukuk investments into other asset classes such as cash in bank and/or Islamic liquid assets.

Gearing Policy

The Fund shall not borrow cash/apply for financing or other assets (including the borrowing/financing of securities) to finance the activities of the Fund or lend any of its cash or investments.


Unless otherwise prohibited by the relevant authorities or any relevant law and provided always that there are no inconsistencies with the objective of the Fund, MASMMF may invest in the following:

1. Islamic money market instruments; 2. Islamic debentures; 3. Sukuk; 4. Cash; 5. placement of Islamic deposits with financial institutions; and

6. any other kinds of Shariah-compliant investments as may be permitted by the SC from time to time.


1. The value of the Fund’s holding in permitted investments must not be less than 90%

of the Fund’s NAV; 2. The value of the Fund’s holdings in permitted investments which have a remaining

maturity period of not more than 365 days must not be less than 90% of the Fund’s NAV;

3. The value of the Fund’s holding in permitted investments which have a remaining maturity period of more than 365 days but fewer than 732 days must not exceed 10% of the Fund’s NAV;

4. The value of the Fund’s investments in Islamic debentures and Islamic money market instruments issued by any single issuer must not exceed 20% of the Fund’s NAV;

5. The value of the Fund’s investments in Islamic debentures and Islamic money market instruments issued by any single issuer may be increased to 30% if the Islamic debentures are rated by any domestic or global rating agency to be of the best quality and offer highest safety for timely payment of profit and principal;

6. The value of the Fund’s placement in Islamic deposits with any single financial institution must not exceed 20% of the Fund’s NAV;

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

8. The Fund’s investments in Islamic debentures must not exceed 20% of the securities issued by any single issuer;

9. The Fund’s investments in Islamic money market instruments must not exceed 20% of the instruments issued by any single issuer; and

10. There will be no restriction or limit for Shariah-compliant securities issued or guaranteed by the Malaysian Government or Bank Negara Malaysia.

The above stated limits and restrictions shall be complied with at all times based on the most up-to-date value of the Fund’s investments and instruments. However, a 5% allowance in excess of any limits or restrictions may be permitted where the limit or restriction is breached through the appreciation or depreciation in value of the NAV of the Fund (as a result of an appreciation or depreciation in value of investments or as a result of the repurchase of Units or payment made from the Fund). Once the relevant limit is breached, no further acquisitions of the particular securities involved shall be made and the Manager should, within a

56

reasonable period of not more than three (3) months from the date of the breach take all necessary steps and actions to rectify the breach.


(i) Listed Shariah-compliant securities (other than sukuk) – any such securities will be valued based on the last done market price.

(ii) Unlisted Shariah-compliant securities – valuation is based on the fair value of an instrument estimated by discounting the future cash stream to its present value using the prevailing (current) market rate that reflects the risk of the issuer. Unlisted Shariah-compliant securities will be valued once a year or as and when the Manager deems appropriate and the valuation shall be verified by the Auditors and approved by the Trustee. For unlisted Shariah-compliant securities that have been approved for listing, the valuation is based on the “offer price” paid by the Fund.

(iii) Listed and unlisted sukuk – for listed sukuk, the last traded prices quoted on a

recognised exchange will be used. In the case of unlisted sukuk, such investments will be valued on a daily basis using fair value prices quoted by a bond pricing agency registered with the SC. If the Manager is of the view that the price quoted by the bond pricing agency differs from the market price by more than 20 basis points, the Manager may use the market price, provided that the Manager record the basis for not using the bond pricing agency price, obtain the necessary internal approvals for not using the bond pricing agency price and keep an audit trail of all the decisions and basis for adopting the market yield.

(iv) Suspended Shariah-compliant securities – will be valued at their suspended price

unless there is conclusive evidence to indicate that the value of such shares have gone below the suspended price, whereupon their value will be ascertained in a manner as agreed upon by the Manager and Trustee, and verified by the Auditors.

(v) Cash in bank and/or Islamic deposits – the value of such investments which are cash

in bank and/or Islamic deposits placed with financial institutions and banks bills shall be determined each day by reference to their nominal values and the accrued income or profit thereon for the relevant period.

(vi) Units in the other Shariah-compliant collective investment schemes – will be valued

based on the last published repurchase price. (vii) Islamic futures and options – all Islamic futures contracts and options will be marked

to market at the end of each trading day.

Investment in the Fund is not the same as placement in a deposit with a financial institution. There are risks involved and investors should rely on their own evaluation to assess the merits and risks when investing in the Fund.

57

(6) ADDITIONAL INFORMATION IN RELATION TO SHARIAH-COMPLIANT FUNDS (MAIF, MASMMF)

Shariah Investment Guidelines The following matters are adopted by the Shariah Adviser in determining the Shariah status of the Funds’ investments.

(i) Local Securities: Reference for investment in local securities is based on the list of Shariah-compliant securities issued by the SACSC twice a year. (ii) Initial Public Offering Of Local Securities

For securities of an initial public offering, the Shariah Adviser adopts the following qualitative and quantitative analysis in determining its Shariah status1.

(A) Quantitative Analysis

(1) The Shariah Adviser excludes companies which main business activities involve

the following:

(a) financial services based on riba (interest); (b) conventional insurance; (c) stockbroking or share trading in Shariah non-compliant securities; (d) gambling and gaming; (e) manufacture or sale of non-halal products or related products (e.g. pork and

liquor); (f) manufacture or sale of tobacco-based products or related products; (g) entertainment activities that are not permitted by the Shariah; and (h) other activities deemed non-permissible according to the Shariah.

(2) For companies with activities comprising both permissible and non-permissible

elements, the Shariah Adviser adopts the following two-tier quantitative approach, which applies the business activity benchmarks and the financial ratio benchmarks as determined by the SACSC:

(a) Business Activity Benchmarks

The contribution of Shariah non-compliant activities to the overall revenue and profit before taxation of the company will be computed and compared against the relevant business activity benchmarks as follows: (i) The five per-cent benchmark: The 5% benchmark would be applicable to the following business activities: • conventional banking; • conventional insurance; • gambling; • liquor and liquor-related activities; • pork and pork-related activities; • non-halal food and beverages; • Shariah non-compliant entertainment; • interest income from conventional accounts and instruments; • tobacco and tobacco-related activities; and • other activities deemed non-compliant according to Shariah.

1 This criterion is adopted by the Shariah Adviser as an interim measure until the SACSC releases the Shariah status of the securities.

58

The contribution of Shariah non-compliant businesses/activities to the overall revenue or profit before taxation of the company must be less than 5%.

(ii) The twenty per-cent benchmark: The 20% benchmark would be applicable to the following business activities: • hotel and resort operations; • share trading; • stockbroking business; • rental received from Shariah non-compliant activities; and • other activities deemed non-compliant according to Shariah. The contribution of Shariah non-compliant businesses activities to the overall revenue or profit before taxation of the company must be less than 20%.

(b) Financial Ratio Benchmarks The financial ratios applied are as follows:

(i) Cash over total asset

Cash will only include cash placed in conventional accounts and instruments, whereas cash placed in Islamic accounts and instruments will be excluded from the calculation.

(ii) Debt over total asset

Debt will only include interest-bearing debt whereas Islamic debt/financing or sukuk will be excluded from the calculation.

Both ratios, which are intended to measure riba and riba-based elements within a company's balance sheet, must be lower than 33%.

Should any of the above deductions fail to meet the above benchmarks (business activity and financial ratio), the Shariah Adviser will not accord a Shariah-compliant status for the companies.

(B) Qualitative Analysis

The Shariah Adviser will look into the aspects of general public perception of the companies’ images, core businesses which are considered important and maslahah (beneficial) to the Muslim ummah and the country, the non-permissible elements are very small and involve matters like ‘umum balwa (common plight and difficult to avoid), ‘uruf (custom) and rights of the non-Muslim community which are accepted by the Shariah.

(iii) Local Sukuk

Based on the list of sukuk readily available at the SC’s website.

(iv) Cleansing/ Purification Process For the Funds (MAIF And MASMMF)

Cleansing/purification process for the Funds

59

(a) Wrong Investment

Refers to Shariah non-compliant investment made by the Manager. The said investment will be disposed of /withdrawn with immediate effect. In the event that 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 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, either the investment resulted in either gain or losses, are to be borne by the Manager.

(b) Reclassification of Shariah Status of the Funds’ Investment

Reclassification relates to a security which has been reclassified as Shariah non-compliant by the SACSC. As per the SACSC’s advice, the said security will be disposed of soonest practicable, once the total amount of dividends received and the market value held equal the original investment costs.

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 Funds. However, any excess capital gains derived from the disposal after the announcement day at a market price that is higher than the closing price on the announcement day is to be channelled to Baitumal or any charitable bodies as advised by the Shariah Adviser.

(v) Zakat for the Funds

The Funds do not pay zakat on behalf of Muslim individuals and Islamic legal entities who are investors of the Funds. Thus, investors are advised to pay zakat on their own.

60

(7) PERFORMANCES OF THE FUNDS MIDF AMANAH GROWTH FUND (MAGF) Average Total Return of MAGF

Period Ended 15 April 2013 1 Year 3 Years 5 Years 10 Years Net asset value -20.89% -6.36% -4.48% 2.25% The abovementioned performance computations have been adjusted to reflect distributions and unit splits and are annualised. The Average Total Return of the Fund is derived from the percentage of change in the Fund's NAV price (adjusted for unit splits and distributions paid out) for the period divided by the number of years under review. Annual Total Return for the Financial Years Ended 15 April

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 MAGF 39.0 -5.5 6.8 25.4 -6.5 -23.2 24.9 16.6 -12.3 -20.9

FBMKLCI 36.4 1.5 7.3 39.4 -4.9 -23.1 39.9 13.7 5.3 5.9 For the Full Year ended 15 April 2013, the NAV per Unit of MAGF decreased by -20.9% while the FBM KLCI Index (“KLCI”) increased by 5.9%. The FBM KLCI Index has been identified as the benchmark for MAGF as it is the closest comparable index. In the period under review, the MAGF underperformed the benchmark due to poorer performance of the small and mid-cap stocks holdings in the portfolio. Annual Total Return of the Fund is derived from the percentage of change in the Fund's NAV price (adjusted for unit splits and distributions paid out) for the period. It is used to show unit trust returns on per annum basis for the periods under review. Distribution Record Financial Year Ended 15 April

Source of Distribution 2011 2012 2013 RM % RM % RM %

Interest income - - - - - - Dividend income - - - - - - Profit from sale of investment - - - - - - - - - - - - Gross distribution per unit (sen) Nil Nil Nil Net distribution per unit (sen) Nil Nil Nil Distributions are either paid out to Unit Holders or reinvested in additional units of the Fund. Portfolio Turnover Ratio for financial year ended 15 April

The annual portfolio turnover = Average Value of Acquisitions and Disposals for the Year

Average Value of the Fund for the Year calculated on a daily basis

The rate will show whether the Fund buys and sells securities frequently or whether it takes a longer

61

term approach to investment management. A portfolio turnover rate of 1x p.a. means that the Fund has been turned over once for that particular year. 2011 2012 2013 PTR 0.64 0.41 0.54 The PTR for 2013 was 0.54 times as compared to 0.41 times for 2012. The difference was due to higher trading activities in 2013. Asset Allocation as at 15 April 2011 2012 2013

Equities and Derivatives 97.4% 97.8% 80.2% Money Market Instruments and Others 2.6% 2.2% 19.8% There was a reduction in the asset allocation from 2012 to 2013 in light of the start of the portfolio rebalancing strategy in anticipation of a relatively better performance of growth stocks, which will put the portfolio in a stronger footing moving forward. Past performance of the Fund is not an indication of future performance

62

MIDF AMANAH STRATEGIC FUND (MASF)

Average Total Return of MASF

Period Ended 15 January 2013

1 Year 3 Years 5 Years 10 Years Net asset value -15.80% -4.82% -5.18% 1.94%

The abovementioned performance computations have been adjusted to reflect distributions and unit splits and are annualised. The Average Total Return of the Fund is derived from the percentage of change in the Fund's NAV price (adjusted for unit splits and distributions paid out) for the period divided by the number of years under review. Annual Total Return for the Financial Years Ended 15 January

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

MASF 26.4 1.6 -8.9 19.6 22.2 -22.3 11.44 25.34 -18.95 -15.8

FBMSCAP -

-

- 27.9 54.6 -45.7 65.17 20.64 -10.56 -0.94

KLEMAS 23.1 9.7 -5.7 - - - - - - -

The FTSE Bursa Malaysia Small Cap Index is used as the benchmark for the fund. For the Full Year ended 15 January 2013, the market value of MASF decreased by 28.2%, compared to the decreased of the FTSE Bursa Malaysia Small Cap (“FBMSC”) Index of 0.9% over the same period. In the period under review, MASF underperformed the FBMSC Index due to the volatile external developments, especially from the Eurozone. Domestically, the rising cautiousness towards the General Election, have affected the performance of the smaller capitalisation stocks in the portfolio. Annual Total Return of the Fund is derived from the percentage of change in the Fund's NAV price (adjusted for unit splits and distributions paid out) for the period. It is used to show unit trust returns on per annum basis for the periods under review. From 2002 – 25 June 2006, the KL emas was identified as the benchmark for the Fund. However, effective 26 June 2006, the benchmark has been replaced by the FMBSCAP as a result of its larger stock universe. Distribution Record Financial Year Ended 15 January


Interest income - - - - - - Dividend income - - - - - - Profit from sale of investment - - - - - - - - - - - - Gross distribution per unit (sen) Nil Nil Nil Net distribution per unit (sen) Nil Nil Nil Distributions are either paid out to Unit Holders or reinvested in additional units of the Fund.

63

Portfolio Turnover Ratio for financial year ended 15 January

The annual portfolio turnover = Average Value of Acquisitions and Disposals for the Year Average Value of the Fund for the Year calculated on a daily

basis

The rate will show whether the Fund buys and sells securities frequently or whether it takes a longer term approach to investment management. A portfolio turnover rate of 1x p.a. means that the Fund has been turned over once for that particular year. 2011 2012 2013 PTR 0.71 0.45 0.30 The PTR for 2013 was 0.30 times as compared to 0.45 times for 2012. The difference was due to lower trading in 2013. Asset Allocation as at 15 January 2011 2012 2013 Equities and Derivatives 98.2% 94.6% 86.3% Money Market Instruments and Others

1.8% 5.4% 13.7%

There was a slight reduction in the asset allocation from 2012 to 2013 in light of the start of the portfolio rebalancing strategy in anticipation of a stronger performance in small cap stocks relative to the overall market, which will put the portfolio in a much stronger footing moving forward. Past performance of the Fund is not an indication of future performance

64

MIDF AMANAH ISLAMIC FUND (MAIF) Average Total Return of MAIF

Period Ended 15 June 2013

1 Year 3 Years 5 Years 10 Years Net asset value -11.69% -4.50% -4.45% 10.04%

The abovementioned performance computations have been adjusted to reflect distributions and unit splits and are annualised. The Average Total Return of the Fund is derived from the percentage of change in the Fund's NAV price (adjusted for unit splits and distributions paid out) for the period divided by the number of years under review. Annual Total Return for the Financial Years Ended 15 June

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 MAIF 4.7 -3.0 -3.6 37.4 -10.4 -10.3 0.21 19.27 -17.89 -11.69 RHB Islamic Index

18.1 - - - - - - - - -

KLSE Syariah

16.7 5.6 -1.7 57.4 - - - - - -

FBMS - - - - -5.44 -14.67 14.01 21.17 3.31 13.57 For the Full Year ended 15 June 2013, the NAV per Unit of MAIF decreased by -11.7% while the FBM Emas Shariah Index (“FBMS”) increased by 13.6%. The FBM Emas Shariah Index has been identified as the benchmark for MAIF as it is the closest comparable index. In the period under review, the MAIF underperformed the benchmark due to poorer performance of the small and mid-cap stocks holdings in the portfolio previously. Annual Total Return of the Fund is derived from the percentage of change in the Fund's NAV price (adjusted for unit splits and distributions paid out) for the period. It is used to show unit trust returns on per annum basis for the periods under review. From 2002 – 31 October 2007, the KLSE Syariah was identified as the benchmark for the Fund. However, effective 1 November 2007, the benchmark has been replaced by the FBMS as a result of its larger stock universe and as a result of the KLSE Syariah being discontinued. Distribution Record Financial Year Ended 15 June


- - - - Income from Islamic deposits - - - - - - Dividend income - - - - - - Profit from sale of Shariah-compliant investment

- - - - - -

Distribution equalisation - - - - - - - - - - - - Gross distribution per unit (sen) Nil Nil Nil Net distribution per unit (sen) Nil Nil Nil Distributions are either paid out to Unit Holders or reinvested in additional units of the Fund.

65

Portfolio Turnover Ratio for financial year ended 15 June


basis The rate will show whether the Fund buys and sells securities frequently or whether it takes a longer term approach to investment management. A portfolio turnover rate of 1x p.a. means that the Fund has been turned over once for that particular year. 2011 2012 2013 PTR 0.63 0.60 1.07 The PTR for 2013 was 1.07 times as compared to 0.60 times for 2012. The difference was due to lower trading in 2012. Asset Allocation as at 15 June 2011 2012 2013 Shariah-compliant Equities and Islamic Derivatives

82.7% 89.7% 85.0%

Islamic Money Market Instruments and Others

17.3% 10.3% 15.0%

There was no significant change to the asset allocation from 2012 to 2013. Past performance of the Fund is not an indication of future performance.

66

MIDF AMANAH DYNAMIC FUND (MADF) Average Total Return of MADF

Period Ended 15 March 2013

1 Year 3 Years 5 Years 10 Years Net asset value -24.48% -6.58% -3.69% -0.39%

The abovementioned performance computations have been adjusted to reflect distributions and unit splits and are annualised. The Average Total Return of the Fund is derived from the percentage of change in the Fund's NAV price (adjusted for unit splits and distributions paid out) for the period divided by the number of years under review. Annual Total Return for the Financial Years Ended 15 March

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

MADF 46.9 -10.8 -14.3 22.7 -3.3 -26.6 38.5 11.2 -4.5 -24.5 FBMKLCI 41.6 0.9 2.9 27.7 1.2 -29.4 54.1 14.2 6.4 3.1 For the Full Year ended 15 March 2013, the NAV per Unit of MADF decreased by 24.5% while the FBM KLCI Index (“KLCI”) increased by 3.1%. The FBM KLCI Index has been identified as the benchmark for the Fund as it is the closest comparable index for MADF. In the period under review, the Fund underperformed the benchmark on the back of volatile external developments and poorer market appetite due to the General Election that have negatively affected the performance of mid to smaller capitalization growth stocks in the portfolio. Annual Total Return of the Fund is derived from the percentage of change in the Fund's NAV price (adjusted for unit splits and distributions paid out) for the period. It is used to show unit trust returns on per annum basis for the periods under review. Distribution Record Financial Year Ended 15 March Source of Distribution 2011 2012 2013

RM % RM % RM % Interest income - - - - - - Dividend income - - - - - - Profit from sale of investment - - - - - - - - - - - - Gross distribution per unit (sen)

Nil Nil Nil

Net distribution per unit (sen) Nil Nil Nil Distributions are either paid out to Unit Holders or reinvested in additional units of the Fund. Portfolio Turnover Ratio for financial year ended 15 March


basis The rate will show whether the Fund buys and sells securities frequently or whether it takes a longer term approach to investment management. A portfolio turnover rate of 1x p.a. means that the Fund has been turned over once for that particular year.

67

2011 2012 2013 PTR 0.83

0.33 0.41

The PTR for 2013 was 0.41 times as compared to 0.33 times for 2012. The difference was due to higher trading activities in 2013. Asset Allocation as at 15 March 2011 2012 2013

Equities 96.7% 95.6% 93.8% Money Market Instruments and Others

3.3% 4.4% 6.2%

There was no significant change to the asset allocation from 2012 to 2013. Past performance of the Fund is not an indication of future performance.

68

MIDF AMANAH MONEY MARKET FUND (MAMMF)

Average Total Return of MAMMF

Period Ended 15 November 2013

1 Year 3 Years 5 Years 10 Years Net asset value 1.15% 1.28% 1.23% 1.48%

The abovementioned performance computations have been adjusted to reflect distributions and are annualised. The Average Total Return of the Fund is derived from the percentage of change in the Fund's NAV price (adjusted for unit splits and distributions paid out) for the period divided by the number of years under review. Annual Total Return for the Financial Years Ended 15 November

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

MAMMF 0.1 3.6 2.2 3.8 1.9 1.6 0.61 1.18 1.47 1.15 3-Month

fixed Deposits

Rate

3.0 3.0 3.3 3.2 3.2 2.1 2.7 - - -

3-Month KLIBOR

2.9 2.9 3.8 3.6 3.7 2.2 - - - -

Maybank Overnight Rate (%

p.a)*

- - - - - - - 1.70 1.80 1.80

*The new performance benchmark of the Fund has taken effect on 1 January 2011. MIDF Amanah Money Market Fund started on 1st January 2011. For the full year ended 15 November 2013, the NAV per Unit of the MAMMF increased by 2.07%, underperforming the Maybank Overnight Rate at 1.80% p.a. The Fund’s underperformance was due to fund redemptions during the period under review. Annual Total Return of the Fund is derived from the percentage of change in the Fund's NAV price (adjusted for unit splits and distributions paid out) for the period. It is used to show unit trust returns on per annum basis for the periods under review. Distribution Record

Financial Year Ended 15 November

Source of Distribution 2011 2012 2013

RM % RM % RM % Income from deposits placement - - - - 22,460 - Previous year realized income - - - - 19,868 - Less: Expenses - - - - (13,878) -

Taxation - - - - 30 - Net distribution amount - - - - 28,480 - Distribution on 1 September 2013 Gross distribution per unit (sen) - - - - 1.64 - Net distribution per unit (sen) - - - - 1.65 -

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Portfolio Turnover Ratio for financial year ended 15 November


basis The rate will show whether the Fund buys and sells securities frequently or whether it takes a longer term approach to investment management. A portfolio turnover rate of 1x p.a. means that the Fund has been turned over once for that particular year. 2011 2012 2013

PTR 16.20 11.48 11.53 PTR = The Fund invested mainly in the placement of short term deposit only. Asset Allocation as at 15 November 2011 2012 2013

Quoted Fixed Income Securities 0.0% 0.0% 0.0%

Money Market Instruments and Others

100% 100% 100%

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

70

MIDF AMANAH SHARIAH MONEY MARKET FUND (MASMMF) Average Total Return of MASMMF

Period Ended 15 October 2013

1 Year 3 Years 5 Years Net asset value -0.18% 4.29% 2.13%

The abovementioned performance computations have been adjusted to reflect distributions and are annualised. The Average Total Return of the Fund is derived from the percentage of change in the Fund's NAV price (adjusted for unit splits and distributions paid out) for the period divided by the number of years under review. Annual Total Return for the Financial Years Ended 15 October

2007 2008 2009 2010 2011 2012 2013

MASMMF -0.6 -12.1 -0.5 -1.5 0.7 12.3 -0.18

12-month Average Return of GIA of Bank Islam^

2.8 3.1 2.8 2.4 - - -

Bank Negara Malaysia Islamic Interbank Overnight Rate*

- - - - 2.91 2.93 -

Maybank Overnight Rate (% p.a.)# - - - - - - 1.8

^The performance benchmark is in fact the performance benchmark of the MIDF Amanah Islamic Bond Fund until 2010.

*The performance benchmark of the Fund has taken effect on 1 January 2011. MIDF Amanah Shariah Money Market Fund started on 1st January 2011. #The new performance benchmark of the Fund has taken effect on 1st August 2013. For the Full Year ended 15 October 2013, the NAV per Unit of MASMMF increased by -0.18% from RM 0.5015 per Unit as at 15 October 2012 to RM 0.5006 per Unit as at 15 October 2013. The number of Units in circulation has increased from 71.8 million Units to 76.5 million as at 15 October 2013.

The Fund met its objective in providing capital stability with regular income returns through investments in short-term Islamic placements and fixed deposits. The Fund declared 1.34 sen net income per Unit which translates to a dividend yield of 3.08% for the FYE 15 October 2013.

The Maybank Overnight Rate has been identified as the benchmark given that it is easily accessible and provides a good indicator on the performance of the Islamic money market.

Annual Total Return of the Fund is derived from the percentage of change in the Fund's NAV price (adjusted for unit splits and distributions paid out) for the period. It is used to show unit trust returns on per annum basis for the periods under review. Distribution Record Financial Year Ended 15 October


Income from Islamic deposits placement

-

-

-

-

724,474 -

71

Previous year realized income - - - - 79,979 - Less: Expenses - - - - (98,694) -

Taxation - - - - (2,796) - Net distribution amount - - - - 702,963 - Distribution on 1 September 2013 Gross distribution per unit (sen) - - - - 1.34 - Net distribution per unit (sen) - - - - 1.34 - Distributions are either paid out to Unit Holders or reinvested in additional units of the Fund. Portfolio Turnover Ratio for financial period ended 15 October


basis The rate will show whether the Fund buys and sells securities frequently or whether it takes a longer term approach to investment management. A portfolio turnover rate of 1x p.a. means that the Fund has been turned over once for that particular year.

2011 2012 2013 PTR 0.00 12.52 11.42 PTR = The PTR for 2013 was at 11.42 times as compared to 12.52 times in 2012. The difference was due to less trading in the financial year. Asset Allocation as at 15 October 2011 2012 2013

Quoted Shariah-compliant securities and Sukuk

- - -

Islamic Money Market Instruments and Others 100.0% 100.0% 100.0% Past performance of the Fund is not an indication of future performance.

72

(8) HISTORICAL FINANCIAL HIGHLIGHTS OF THE FUNDS

This section covers the extracts of the Funds’ Audited Statement of Income and Expenditure and Statement of Financial Positions for the past three (3) financial years preceding the date of this Master Prospectus:

MAGF Audited Audited Audited Income Statement Year Year Year Ended Ended Ended 15.04.2013 15.04.2012 15.04.2011 RM RM RM Investment Income / (Expense) Interest income 35,067 42,961 80,702 Gross dividend income 317,930 328,583 498,714 Net (loss)/gain from financial asset at fair value through profit & loss ("FVTPL") (3,945,148)

(3,006,538)

3,865,986

Total Investment Income / (Expense) (3,592,151) (2,634,994) 4,445,402 Expenditure Management fee 237,235 325,173 383,361 Trustee’s fee 12,653 17,342 24,061 Auditors’ remuneration 6,000 6,000 6,000 Administration 32,510 44,654 76,902 Total Expenditure 288,398 393,169 490,324 Net (loss)/income before taxation (3,880,549) (3,028,163) 3,955,078 Tax expense (12,835) (37,178) (43,689) Net (loss)/income after taxation (3,893,384) (3,065,341) 3,911,389 Change in net assets attributable to Unit Holders Realised 3,269,110 816,322 3,439,740 Unrealised (624,274) (3,881,663) 471,649 (3,893,384) (3,065,341) 3,911,389 Balance Sheet as at 15.04.2013 15.04.2012 15.04.2011 Assets Investments 10,761,363 19,282,272 24,946,766 Other assets 2,832,044 512,540 824,817 Total Assets 13,593,407 19,794,812 25,771,583 Liabilities Creditors and accruals 187,171 82,597 186,380 Distribution payable - - - Total Liabilities 187,171 82,597 186,380

Represented by : Unit Holders’ capital 3,768,975 6,181,570 8,989,217 Retained earnings 9,637,261 13,530,645 16,595,986

13,406,236 19,712,215 25,585,203 Total Equity and Liabilities 13,593,407 19,794,812 25,771,583 Number of Units in circulation 27,969,668 32,533,212 37,032,212

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Net Assets attributable to Unit Holders per Unit 0.4793 0.6059 0.6909

Total Brokerage Fees Paid 31,216 49,636 109,079

MASF Audited Audited Audited Income Statement Year Year Year Ended Ended Ended 15.01.2013 15.01.2012 15.01.2011 RM RM RM Investment Income / (Expense) Interest income 56,018 73,761 235,167 Gross dividend income 495,968 651,996 870,935 Other Income - - - Net (loss)/gain from financial asset at fair value through profit & loss (“FVTPL”) (4,687,795)

(9,203,932)

10,244,891

Total Investment Income (4,135,809) (8,478,175) 11,350,993 Expenditure Management fee 452,404 640,260 652,387 Trustee’s fee 24,127 34,148 43,128 Auditors’ remuneration 6,000 6,000 6,000 Administration 38,355 140,180 20,723 Total Expenditure 520,886 820,588 722,238 Net (loss)/income before taxation (4,656,695) (9,298,763) 10,628,755 Tax expense (21,494) (76,465) (75,278) Net (loss)/income after taxation (4,678,189) (9,375,228) 10,553,477

Change in net assets attributable to Unit Holders Realised 760,524 12,383,599 2,910,192 Unrealised (3,917,665) (21,758,827) 7,643,285 (4,678,189) (9,375,228) 10,553,477

Balance Sheet as at 15.01.2013 15.01.2012 15.01.2011 Assets Investments 21,170,931 32,388,740 50,755,427 Other assets 3,398,963 1,851,697 1,063,595 Total Assets 24,569,894 34,240,437 51,819,022 Liabilities Creditors and accruals 38,835 52,343 128,292 Distribution payable - - - Total Liabilities 38,835 52,343 128,292 Represented by : Unit Holders’ capital 3,639,849 8,618,695 16,746,103 Retained earnings 20,891,210 25,569,399 34,944,627 24,531,059 34,188,094 51,690,730 Total Equity and Liabilities 24,569,894 34,240,437 51,819,022

74

Number of Units in circulation 31,670,775 37,162,775 45,529,775 Net Assets attributable to Unit Holders per Unit 0.7746

0.92

1.1353

Total Brokerage Fees Paid 43,764 110,457 207,443 MAIF Audited Audited Audited Income Statement Year Year Year Ended Ended Ended 15.06.2013 15.06.2012 15.06.2011 RM RM RM Investment Income / (Expense) Income from Islamic deposits placement 18,908 54,490 47,828 Gross dividend 173,883 223,402 374,166 Net (loss)/gain from financial asset at fair value through profit & loss (“FVTPL”) (1,155,894)

(3,526,463)

2,612,274 Total Investment Income/(Expense) (963,103) (3,248,571) 3,034,268 Expenditure Management fee 132,848 240,953 261,911 Trustee’s fee 7,085 12,851 15,630 Auditors’ remuneration 6,000 6,000 6,000 Administration 30,108 54,778 54,368 Total Expenditure 176,041 314,582 337,909 Net (loss)/income before taxation (1,139,144) (3,563,153) 2,696,359 Tax expense 324 12,356 37,547 Net (loss)/income after taxation 1,139,468 3,575,509 2,658,812 Change in net assets attributable to Unit Holders Realised (4,450,149) 353,728 836,998 Unrealised 3,310,681 (3,929,237) 1,821,814 (1,139,468) (3,575,509) 2,658,812 Balance Sheet as at 15.06.2013

15.06.2012 15.06.2011 Assets Shariah-compliant investments 6,728,664 9,992,115 17,979,031 Other assets 1,248,428 1,277,809 3,825,095 Total Assets 7,977,092 11,269,924 21,804,126 Liabilities Creditors and accruals 75,912 126,988 51,193 Distribution payable - - - Total Liabilities 75,912 126,988 51,193

Represented by : Unit Holders’ capital 5,434,632 7,536,920 14,571,408 Retained earnings 2,466,548 3,606,016 7,181,525 7,901,180 11,142,936 21,752,933

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Total Equity and Liabilities 7,977,092 11,269,924 21,804,126

Number of units in circulation 27,903,295 34,747,140 55,699,140 Net Assets attributable to Unit Holders per unit 0.2832 0.3207 0.3905 Total Brokerage Fees Paid 31,891 50,837 76,590

Note: The Shariah Adviser confirms that the investment portfolio of MAIF comprises securities which have been classified as Shariah-compliant by the SACSC. As for the securities which are not certified by the SACSC, they have reviewed the said securities and opine that these securities are designated as Shariah-compliant. MADF Audited Audited Audited Income Statement Year Year Year Ended Ended Ended 15.03.2013 15.03.2012 15.03.2011 RM RM RM Investment Income / (Expense) Interest income 6,440 6,211 19,375 Gross dividend income 52,287 60,255 99,246 Other Income - - 1,017 Net (loss)/gain from financial asset at fair value through profit & loss (“FVTPL”) (840,865)

(126,408)

487,066

Total Investment Income/(Expense) (782,138) (59,942) 606,704 Expenditure Management fee 44,639 59,728 70,845 Trustee’s fee 2,381 3,185 4,525 Auditors’ remuneration 6,000 6,000 6,000 Administration 17,459 14,835 27,723 Total Expenditure 70,479 83,748 109,093 Net (loss)/income before taxation (852,617) (143,690) 497,611 Tax expense (1,854) (8,731) (9,555) Net (loss)/income after taxation (854,471) (152,421) 488,056 Change in net assets attributable to Unit Holders Realised (165,009) 66,249 442,779 Unrealised (689,462) (218,670) 45,277 (854,471) (152,421) 488,056

Balance Sheet as at

15.03.2013

15.03.2012

15.03.2011 Assets Investments 2,228,680 3,523,900 4,422,932 Other assets 161,387 172,747 179,428 Total Assets 2,390,067 3,696,647 4,602,360 Liabilities Creditors and accruals 14,805 10,142 28,675 Distribution payable - - - Total Liabilities 14,805 10,142 28,675

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Represented by : Unit Holders’ capital 588,472 1,045,244 1,780,003 Retained earnings 1,786,790 2,641,261 2,793,682 2,375,262 3,686,505 4,573,685 Total Equity and Liabilities 2,390,067 3,696,647 4,602,360 Number of Units in circulation 3,722,208 4,363,000 5,172,000 Net Assets attributable to Unit Holders per Unit 0.6381 0.8449 0.8843

Total Brokerage Fees Paid 5,844 7,346 29,498 MAMMF Audited Audited Audited Income Statement Year Year Year Ended Ended Ended 15.11.2013 15.11.2012 15.11.2011 RM RM RM Investment Income Interest income 27,957 34,989 34,767 Net realised gain/(loss) on sale of investments - - - Total Investment Income 27,957 34,989 34,767 Expenditure Management fee 4,709 5,741 7,944 Trustee’s fee 527 804 1,012 Auditors’ remuneration 3,000 3,000 2,000 Administration 9,164 7,849 7,573 Total Expenditure 17,400 17,394 18,529 Net income/(loss) before taxation 10,557 17,595 16,238 Tax expense 292 917 - Change in net assets attributable to Unit Holders 10,849 16,678 16,238

Change in net assets attributable to Unit Holders Realised 10,849 16,678 16,238 Unrealised - - - 10,849 16,678 16,238 Balance Sheet as at 15.11.2013 15.11.2012 15.11.2011 Assets Other assets 899,327 1,013,496 1,224,351 Total Assets 899,327 1,013,496 1,224,351 Liabilities Creditors and accruals 5,423 6,037 28,060 Distribution payable - - - Total Liabilities 5,423 6,037 28,060 Net Assets Attributable to Unit Holders 893,904 1,007,459 1,196,291

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Represented by : Unit Holders’ capital 368,302 464,226 669,736 Retained earnings 525,602 543,233 526,555 Investment fluctuation reserve/(deficit) 893,904 1,007,459 1,196,291 Number of units in circulation 1,783,803 1,969,000 2,372,000 Net Assets attributable to Unit Holders per Unit 0.5011 0.5117 0.5043

Total Brokerage Fees Paid - - -

MASMMF Audited Audited Audited Income Statement Year Year Year Ended Ended Ended 15.10.2013 15.10.2012 15.10.2011

RM RM RM Investment Income Income from Islamic deposits placement 818,153 787,203 502,233 Recoveries from impaired unquoted sukuk - 61,999 13,267

13,267 Total Investment Income 818,153 849,202 518,500 Expenditure Management fee 86,209 128,459 86,829

86,829 Trustee’s fee 18,000 21,739 18,000 18,000 Auditors’ remuneration 3,000 3,000 1,500

1,500 Administration 9,244 7,258 3,313 3,313 Total Expenditure 116,453 160,456 109,642

Net incomebefore taxation 701,700 688,746 408,858

408,858 Tax expense 1,815 (23,829) - Net income after taxation 703,515 664,917 408,858

408,858 Change in net assets attributable to Unit Holders Realised 703,515 664,917

664,917 408,858

408,858 Unrealised - - - 703,515 664,917 408,858 Balance Sheet as at 15.10.2013 15.10.2012 15.10.2011 Assets Other assets 38,336,298 36,036,890 10,999,782 Total Assets 38,336,298 36,036,890 10,999,782 Liabilities Creditors and accruals 13,861 24,570 17,952 Distribution payable - - - Total Liabilities 13,861 24,570 17,952 Represented by : Unit Holders’ capital 37,337,456 35,027,891 10,662,318 Retained earnings 984,981 984,429 319,512 38,322,437 36,012,320 10,981,830

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Total Equity and Liabilities 38,336,298 36,036,890 10,999,782 Number of units in circulation 76,558,564 71,811,000 24,593,000 Net Assets attributable to Unit Holders per Unit 0.5006 0.5015 0.4465 Total Brokerage Fees Paid - - -

Note: The Shariah Adviser confirms that the investment portfolio of MASMMF have been made in Shariah-compliant investments and/or instruments as approved by the Shariah Advisory Councils of the SC and Bank Negara Malaysia. TOTAL ANNUAL EXPENSES INCURRED BY THE FUNDS IN THE PRECEDING FINANCIAL YEAR Fund Name

Financial Year Ended

Management fees

Trustee fees Other Expenses Total Annual Expenses

RM % # RM % # RM % # RM % #

MAGF 15 Apr 2013

237,235 1.50 12,653 0.08 38,510 0.13 288,398 1.71

MASF 15 Jan 2013

452,404 1.50 24,127 0.08 44,355 0.09 520,886 1.67

MAIF 15 Jun 2013

132,848 1.50 7,085 0.08 36,108 0.21

176,041 1.79

MADF 15 Mar 2013

44,639 1.50 2,381 0.08 23,459 0.33

70,479

1.91

MAMMF 15 Nov 2013

4,709

0.50 527 0.05 12,164

0.70

17,400

1.25

MASMMF 15 Oct 2013

86,209 0.20 18,000 0.05 12,244

0.11 116,453 0.66

# Reflected as a percentage of average NAV. Management Expense Ratio (MER) of the Funds for the past three (3) financial years Fund Name

Financial Year Ended Management Expense Ratio (%)

2011 2012 2013 MAGF 15-Apr 1.69 1.68 1.74

MASF 15-Jan 1.66 1.64 1.67 MAIF 15-Jun 1.70 1.69 1.80 MADF 15-Mar 1.94 2.00 2.25 MAMMF 15-Nov 1.37 1.51 1.85 MASMMF 15-Oct 0.64 0.62 0.43 The MER of MAGF, MASF, MAIF, MADF, MAMMF and MASMMF for 2013 was almost similar with the previous financial year, with the exception of a few due to a relatively much lower NAV of the fund compared to their respective total management expenses.

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Past performances of the Funds are not an indication of its future performance. The Audited Financial Statements of the Funds are disclosed in the Funds’ annual reports. The Funds’ annual reports are available upon request.

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(9) FEES, CHARGES AND EXPENSES

Charges The following describes the charges that investors may directly incur when buying or redeeming Units: (a) Sales Charge

A sales charge may be imposed on the purchase of Units of the Funds and may be utilised by the Manager to pay the marketing, advertising and distribution expenses of the Funds.

The sales charge shall be a percentage of the NAV per Unit of the Funds and are separately disclosed as follows to enable investors to understand, compare and to make an informed decision on the preferred distribution channel:

FUND

MAGF

MASF

MAIF

MADF

MAMMF

MASMMF

Sales Charge*





Nil

Nil

* The Manager reserves the right to waive or reduce the sales charge from time to time at its absolute discretion. Investors may also negotiate for a lower sales charge with their preferred distributor, subject to the respective channels’ qualifying criterion. All sales charges will be rounded up to two (2) decimal places and will be retained by the Manager. Differing sales charge may be levied depending on the distribution channels and the distributor within each distribution channel, subject to the sales charge stipulated above. This is due to the different levels of services provided by each distribution channel and / or the size of the investment undertaken.

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Illustration - Computation of sales charge Example:

If an investor wishes to invest RM10,000.00 in a Fund which imposes a sales charge of 5.00% of the NAV per Unit of the Fund (which is the Selling Price per Unit of the Fund or the amount actually invested in the Fund), the total amount of sales charge will be:

5.00% x 10,000.00 = RM500.00 The total amount to be paid by an investor for his or her investment will therefore be:

RM10,000.00 + RM500.00 = RM10,500.00 (inclusive of sales charge) (b) Repurchase Charge

No repurchase charge is levied on the repurchase of Units for any of the Funds.

(c) Transfer Fee

A fee of RM50 is payable to the Manager for each transfer. (d) Switching Charge

Each Unit Holder is entitled to two (2) free switching in a calendar year. For any subsequent switching, a Unit Holder will incur a switching charge payable to the Manager for the sum of RM25 per switch.

For MASMMF, Units of MASMMF switched to any other Funds within the first year from the date of purchase of those Units are considered redeemed by the Unit Holder and reinvested in the other Funds.

Please refer to Section 11(e) for details of the switching fee imposed by the Manager.

(e) Autodebit/Standing Instruction Charges

Autodebit/Standing Instruction facilities are available at selected banks and handling charges will be borne by the investors. For more details, please contact our Customer Service Line 03-2173 8488.

(f) Deferred Sales Charge

Over and above the sales charge, a deferred sales charge will be imposed on any Unit Holders whose investment period is less than 365 days from the date of purchase of the Units for MAGF, MASF, MAIF and MADF.

The deferred sales charge imposed shall be up to 1.50% of the NAV per Unit at the point of the Unit Holder’s initial investment. The Manager reserves the right to waive or reduce the deferred sales charge from time to time at its absolute discretion. All deferred sales charges will be rounded up to two (2) decimal places and will be retained by the Manager.

Illustration - Computation of deferred sales charge

Example:

If a Unit Holder has purchased 20,000 Units of MAGF and wished to redeem the Units within 365 days from the date of purchase of the Units, the NAV per Unit at the point of the Unit Holder’s initial investment is RM0.5000 and the deferred sales charge imposed is 1.50% of the NAV per Unit at the point of the Unit Holder’s initial investment.

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The deferred sales charge the Unit Holder has to pay will be:

Amount to be redeemed = Units redeemed x NAV per Unit at the point of the Unit Holder’s initial investment

= 20,000 x RM0.5000 = RM10,000.00 Deferred sales charge = 1.50% x (amount to be redeemed) = 1.50% x RM10,000.00 = RM150.00

Fees And Expenses The fees and expenses indirectly incurred by an investor when investing in a Fund are as follows: (a) Manager's Fee

The Manager is entitled to an annual management fee of 1.5% per annum of the NAV for all the Funds except for MAMMF and MASMMF which is at 0.5% per annum of the NAV, before deducting annual management fee and trustee’s fee for the day, calculated and accrued on a daily basis.

(b) Trustees’ Fee

The Trustee is entitled to an annual trustee fee of 0.08% per annum of the NAV of MAGF, MASF, MAIF and MADF and an annual trustee fee of up to 0.07% per annum of the NAV of MAMMF. The Trustee would only be entitled to up to 0.07% per annum of the NAV of MASMMF (subject to a minimum fee of RM18,000 per annum) before deducting annual management fee and trustee’s fee for the day, calculated and accrued on a daily basis.

The following is an example of the daily computation of Manager’s and Trustee’s fees:- Total NAV (before deducting the Manager’s and Trustee’s fees for the day) as at 15 March 2014 for a Fund Manager’s fee accrued for the day (1.5% x NAV / 365) (1.5% X 24,599,840.70 / 365) Trustee’s fee accrued for the day (0.08% x NAV /365) (0.08% X 24,599,840.70 / 365)

RM

24,599,840.70

1,010.95

53.92

(The annual management fee and trustee’s fee method of computation illustrated above is applicable to all the Funds) (c) Fund Expenses

In administering the Fund, only fees and expenses that are directly related and necessary to the operation and administration of the Fund may be charged to the Fund. These include (but not limited to) the following:

(i) commissions/fees paid to brokers in effecting dealings in the investments of the Fund,

shown on the contract notes or confirmation notes;

(ii) taxes and other duties charged on the Fund by the Government and/or other authorities;

(iii) costs, fees and expenses properly incurred by the auditors appointed for the Fund;

(iv) costs, fees and expenses incurred for the valuation of any investment of the Fund by independent valuers for the benefit of the Fund;

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(v) costs, fees and expenses incurred for any modification of the Deed save where such modification is for the benefit of the Manager and/or the Trustee;

(vi) costs, fees and expenses incurred for any meeting of the Unit Holders save where such meeting is convened for the benefit of the Manager and/or the Trustee;

(vii) costs, commissions, fees and expenses of the sale, purchase, insurance/takaful and any other dealing of any asset of the Fund;

(viii) costs, fees and expenses incurred in engaging any specialist approved by the Trustee for investigating or evaluating any proposed investment of the Fund;

(ix) costs, fees and expenses incurred in engaging any valuer, adviser or contractor for the benefit of the Fund;

(x) costs, fees and expenses incurred in the preparation and audit of the taxation, returns and accounts of the Fund;

(xi) costs, fees and expenses incurred in the termination of the Fund or the removal of the Trustee or the Manager and the appointment of a new trustee or management company;

(xii) costs, fees and expenses incurred in relation to any arbitration or other proceedings concerning the Fund or any asset of the Fund, including proceedings against the Trustee or the Manager by the other for the benefit of the Fund (save to the extent that legal costs incurred for the defence of either of them are not ordered by the court to be reimbursed by the Fund);

(xiii) remuneration and out of pocket expenses of the independent members of the investment committee of the Fund, unless the Manager decides otherwise; and

(xiv) costs, fees and expenses deemed by the Manager to have been incurred in connection with any change or the need to comply with any change or introduction of any law, regulation or requirement (whether or not having the force of law) of any governmental or regulatory authority.

Expenses related to the issuance of this Master Prospectus will be borne by the Manager.

Policy on Stockbroking Rebates and Soft Commissions

The Manager or any delegate thereof will not retain any form of rebate or soft commission from, or otherwise share in any commission with, any broker in consideration for directing dealings in the investments of the Funds. However, soft commissions may be retained by the Manager and its delegate for payment of goods and services such as research material, data and quotation services and investment management tools, which are of demonstrable benefit to Unit Holders. There are fees and charges involved and investors are advised to consider the fees and charges before investing in the Funds.

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(10) TRANSACTION INFORMATION

(a) Valuation Point

Valuation point refers to such time on a Business Day as may be decided by the Manager wherein the NAV of the Funds is calculated. A valuation for each Business Day is carried out at the end of the day immediately after the Bursa Malaysia is closed.

(b) Computation of NAV and NAV per Unit

NAV of the Funds is determined by deducting the value of the Funds’ liabilities from the value of the Funds’ assets, at a valuation point. For the purpose of computing the annual management fee and annual trustee fee, the NAV of the Funds should be inclusive of the annual management fee and the annual trustee fee for the relevant day.

Please note that the example below is for illustration only:

RM Securities Investment 100,000,000.00

Add : Other Assets (including cash) & Income 1,400,000.00 Less : Liabilities 200,000.00 NAV before deducting annual management fee and

annual trustee fee for the day 101,200,000.00

Less : Annual management fee for the day 4,158.90 (at 1.50% per annum calculated based on the NAV) RM101,200,000.00 X 1.50% / 365 days

Less : Annual trustee fee for the day 221.81 (at 0.08% per annum calculated based on the NAV) RM101,200,000.00 X 0.08% / 365 days

NAV 101,195,619.29

The NAV per Unit of the Funds is calculated by dividing the Total NAV of the Funds by the number of Units in circulation at the same valuation point of each Business Day.

In the event that there are 300,000,000 Units of a Fund in circulation at the point of valuation, the NAV per Unit of the Fund shall therefore be calculated as follows:

RM NAV 101,195,619.29 Divide: Units in Circulation 300,000,000

NAV per Unit of a Fund 0.3373*

* NAV per Unit will be rounded up to four (4) decimal places for the purposes of publication of the NAV per Unit.

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(c) Pricing of Units

Single Pricing Regime With effect from 1 July 2007, the Manager has been implementing a single pricing regime as required by the SC. Under this regime, both the selling price and the repurchase price per Unit will be the same, i.e., the NAV per Unit of a Fund.

Selling Price of Units

i. The Selling Price of a Unit for MAGF, MASF, MAIF and MADF is the NAV per Unit of the respective Fund at the end of each Business Day as at the next valuation point after the request to purchase Units is received by the Manager (Forward Pricing). The Manager and its distributors will impose a maximum sales charge of 5.00% of the NAV per Unit of the Fund (which is the Selling Price per Unit of the Fund or the amount actually invested in the Fund) on top of the amount an investor pays to the Manager to purchase Units.

ii The Selling Price of a Unit for MAMMF and MASMMF is the NAV per Unit of the respective Fund at the end of each Business Day as at the next valuation point after the request to purchase Units is received by the Manager (Forward Pricing). The Manager and its distributors will not impose any sales charge on an investor who wishes to purchase Units of MAMMF and MASMMF.

Calculation of Selling Price

Illustration – Sale of Units with sales charge Example:

If an investor wishes to invest RM10,000.00 in the MAGF (a Fund which imposes a sales charge) before 4.00 p.m. on 15 March 2014, and if the sales charge is 5.00% of the NAV per Unit of the Fund (which is the Selling Price per Unit of the Fund or the amount actually invested in the Fund), the total amount to be paid by the investor and the number of Units issued to an investor will be as follows:

Sales Charge payable by an investor = 5.00% x 10,000.00 = RM500.00

The total amount to be paid by an investor for his or her investment will therefore be: RM10,000.00 + RM500.00

= RM10,500.00 (inclusive of sales charge)

In the event that the NAV per Unit for MAGF at the end of the Business Day on 15 March 2014 = RM0.5000

The number of Units that will be issued to the investor will be: RM10,000.00 divided by RM0.5000 (the NAV per Unit for MAGF) = 20,000.00 Units Illustration – Sale of Units without sales charge Example:

If an investor wishes to invest RM10,000.00 in MAMMF (a Fund which does not impose any sales charge) before 4.00 p.m. on 15 March 2014, the total amount to be paid by the investor and the number of Units issued to an investor will be as follows:

The total amount to be paid by an investor for his or her investment will be RM10,000.00 as there will be no sales charge imposed by the Manager.

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In the event that the NAV per Unit for MAMMF at the end of the Business Day on 15 March 2014 = RM0.5000

The number of Units that will be issued to the investor will be: RM10,000.00 divided by RM0.5000 (the NAV per Unit for MAMMF)

= 20,000.00 Units

Investors are advised not to make payment in cash when purchasing units of a fund via any institutional/retail agent.

Repurchase Price of Units

The Repurchase Price of a Unit for MAGF, MASF, MADF, MAMMF, MAIF and MASMMF is the NAV per Unit of the respective Fund at the end of each Business Day as at the next valuation point after the request to repurchase Units is received by the Manager (Forward Pricing). There would not be any repurchase charge imposed on the Funds.

Calculation of Repurchase Price

Illustration – Repurchase of Units without repurchase charge Example:

If an investor wishes to redeem RM10,000.00 from MAGF (a Fund which does not impose any repurchase charge) before 4.00 p.m. on 15 March 2014, the total amount to be paid to the investor and the number of Units redeemed by an investor will be as follows:

In the event that the NAV per Unit for MAGF at the end of the Business Day on 15 March 2014 = RM0.5000

The number of Units that will be redeemed by an investor will be: RM10,000.00 divided by RM0. 5000 (the NAV per Unit for MAGF)

= 20,000.00 Units

The total amount to be paid to an investor will be the number of Units to be redeemed multiplied with the NAV per Unit.

= 20,000.00 Units x RM0.5000 = RM10,000.00 Therefore the investor will receive RM10,000.00 as redemption proceeds.

(d) Incorrect Pricing The Manager shall take immediate remedial action to rectify any incorrect valuation and/or pricing of the Funds or Units of the Fund. Where such error has occurred, monies shall be reimbursed in the following manner:-

(a) in the event of over valuation or pricing, by the Manager to the Funds (if there

is a redemption of Units) and/or to the Unit Holders who purchase Units at a higher price; or

(b) in the event of under valuation or pricing, by the Manager to the Funds (if

there is a sale of Units) and/or to the Unit Holders or former Unit Holders who redeem at a lower price.

Notwithstanding the foregoing, unless the Trustee otherwise directs, no reimbursement shall be made save and except where an incorrect pricing: –

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(i) is equal to or more than zero point five per centum (0.5%) of the Net Asset

Value per Unit; and (ii) results in a sum total of Ringgit Malaysia Ten (RM10.00) or more to be

reimbursed to a Unit Holder for each sale or repurchase transaction.

Subject to any regulatory requirements, the Manager shall have the right to amend, vary or revise the abovesaid limits or threshold from time to time and disclose such amendment, variation or revision in this Master Prospectus.

There are fees and charges involved and investors are advised to consider the fees and charges before investing in the Funds.

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(11) TRANSACTION DETAILS

(a) How and where to Purchase and Redeem Units of the Funds

You may contact our Customer Service Department for general inquiries or specific information with regard to investment in Units of the Funds or on your account details. For Funds application, an applicant is required to complete the Account Opening & Investment Form, which is readily available together with this Master Prospectus from the following outlets or persons:

(i) Customer Service Line at 03 – 2173 8488; (ii) Independent Tied Agents of The Manager, with registration card issued by the

FIMM and the Manager; and (iii) IUTAs.

(b) Investment

The minimum initial investment in MAGF, MASF, MAIF and MADF is RM1,000 and the minimum subsequent investment is RM100. However, for MAMMF and MASMMF, the minimum initial investment is RM1,000 and the minimum subsequent investment is RM500. Investors are recognised as Unit Holders only after they have been registered in the Unit Holders’ Register. The registration takes effect from the date the Manager receives the application to purchase Units from investors together with the payment thereof.

(c) Repurchase of Units

You may redeem part or all of your Units by simply completing the Transaction Form and returning it to the Manager. You shall be paid within 10 calendar days from the date the request to repurchase is received by the Manager. For partial repurchase, the Unit holdings after the repurchase must not be less than one hundred (100) Units for MAGF, MASF, MAIF and MADF. For MAMMF and MASMMF, the Unit holdings after the repurchase must not be less than one thousand (1,000) Units. If the Unit holdings of an investor are, after a repurchase request, below the minimum Unit holdings for the respective Fund, a request for full redemption is deemed to have been made. Other than the above conditions, there are no restrictions in terms of frequency and minimum Units to be repurchased.

(d) Transfer of Units

Units within the Funds may be transferred from one Unit Holder to another Unit Holder subject to the Manager’s sole discretion and to the provisions of the Deed.

(e) Switching between Funds

Unit Holders may switch their investments between the Funds managed by the Manager in response to their investment needs. However, switching from a Shariah-compliant fund to a conventional fund is discouraged especially for Muslim Unit Holders. You should read and understand this Master Prospectus for the Funds you are considering switching to before deciding to switch.

Each Unit Holder is entitled to two (2) free switching within a calendar year. Subsequent switches will be charged a switching fee of RM25 per switch. The minimum number of Units per switch is 1,000 Units. There is no restriction on the frequency of switching.

Switching into new funds will not be allowed during the initial 6 months from the

89


The fees and charges imposed by the Manager for switching between the Funds are set out as follows:-

Switched to

Switched from

Equity Fund (MAGF, MASF, MAIF

& MADF)

Money Market Fund (MAMMF & MASMMF)

Equity Fund (MAGF, MASF, MAIF & MADF)

At Repurchase Price per Unit + switching fee


Money Market Fund

(MAMMF & MASMMF)

At Repurchase Price per Unit + sales charge + switching fee


(f) Dealing Cut-Off Time for Investment, Repurchase and Switching of Units The dealing cut-off time shall be at 4.00 p.m. on a Business Day.

Applications received before the cut-off time on a Business Day will be processed on the same Business Day based on the same day’s pricing of the Funds.

Applications received after the cut-off time on a Business Day will be treated as having been received on the next Business Day and will be processed on the next Business Day based on the next day’s pricing of the Funds.

The above is in accordance with the standards issued by FIMM on the dealing cut-off time.

For pricing of Units, please refer to pages 85 - 87.

(g) Notice of Cooling-off Period

A cooling-off right refers to the right of the Unit Holder to obtain a refund of his investment in the Funds if he so requests within the cooling-off period. A cooling-off right is only given to an investor, other than those listed below, who is investing in any of the Manager’s funds for the first time:

(i) a corporation or institution; (ii) a staff of the Manager; and (iii) persons registered to deal in unit trusts of the Manager.

The cooling-off period shall be for a total of six (6) Business Days commencing from the date the application for Units is received by the Manager.

The refund for every Unit held by the investor pursuant to the exercise of his cooling-off right shall be the sum of:

(a) the NAV per Unit on the day the Units were first purchased; and (b) the sales charge per Unit originally imposed on the day the Units were

purchased.

Investor are advised not to make payment in cash when purchasing Units of a Fund via any institutional/retail agent

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(h) Distribution of Income

Given the emphasis on capital growth for MAGF, MASF, MAIF and MADF, the distribution of income for these Funds will be of secondary importance. Unit Holders have the option of requesting that income due to them on any income distribution be reinvested in the Fund, if any. The reinvestments will be based on the NAV per Unit (ex-distribution) at the close of the date the income distribution is declared. Sales charge will not be imposed on the income distribution reinvestments. The Manager reserves the right to reinvest income distributed in respect of a Fund, which is less than RM250.00, in additional Units of the Fund at the NAV per Unit of the Fund at the close of the date the income distribution is declared. Distribution cheques issued to Unit Holders will become void after 6 months from the distribution payment date. Upon the expiry of the cheque, if it has not been presented for payment, it would be reinvested automatically into Units of the respective Fund at NAV per Unit valued on the date of the expiry of the cheque. However, consistent with MAMMF and MASMMF’s objective to provide investors with a stable income stream, these two Funds will strive to distribute consistent income (if any) to investors at the end of each month. This will be in proportion to the number of Units an investor holds on the date the distribution is declared. In the absence of written instructions to the contrary from a Unit Holder, any income distribution will be reinvested in the Fund.

(i) Anti-Money Laundering Policies and Procedures

When establishing or conducting business relations, particularly when opening new accounts and entering into a fiduciary transaction with a client, the Manager identifies and verifies the client through documents such as identity card, passport, birth certificate, driver’s licence, constituent documents or any other official documents, whether in the possession of a third party or otherwise. Such documents shall be filed by the Manager in accordance with relevant laws.

Where the Manager suspects or has a reason to suspect that a particular transaction may not be genuine, a Suspicious Transaction Form (STF) shall be completed. The compliance officer shall discuss the contents of the STF together with the chief executive officer of the Manager to ascertain if there is a reasonable ground for further action. If further action is warranted, a Suspicious Transaction Report (STR) will then be submitted to the Financial Intelligence and Enforcement Department of Bank Negara Malaysia.

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(12) THE MANAGEMENT AND ADMINISTRATION OF THE FUNDS

(a) Background Information

MIDF Amanah was incorporated in Malaysia under the Companies Act, 1965 on 29 February 1972. Its authorised share capital is RM20,000,000 comprising 20,000,000 ordinary shares of RM1.00 each while its issued and paid-up share capital as at 2 January 2014 was RM20,000,000 comprising 20,000,000 ordinary shares of RM1.00 each. Its registered office is at Level 21, Menara MIDF, 82 Jalan Raja Chulan, 50200 Kuala Lumpur.

MIDF Amanah is a fund manager licensed under the Act. It has more than 10 years’ experience in providing fund management and investment advisory services.

As at 2 January 2014, MIDF Amanah manages 17 private funds and 6 unit trust funds with total funds valued at approximately RM0.63 billion backed by 16 employees of whom 12 are executive staff and 4 are non-executive staff.

(b) Functions, Duties and Responsibilities of the Manager

The Manager of the Funds pools together the collective investments of Unit Holders and professionally invests the monies within prescribed limits, restrictions and guidelines to meet the objectives of the Funds. The Manager is under a fiduciary duty to act in good faith and to avoid advancing a conflicting interest and to exercise due care and diligence when managing the monies of a Unit Holder and when making any investments for the Funds.

The general functions, duties and responsibilities of the Manager include, but are not limited to, the following:

(i) to ensure that the Funds are managed within the ambit of the Deeds, the Act,

the Securities Commission Act 1993, the Securities Law and the relevant guidelines at all time;

(ii) any application to the SC e.g. to increase the size of the fund, the renewal of this Master Prospectus etc;

(iii) the success in the launch and sales of any fund, and to provide customer support and distribution agency network to best serve the Unit Holders of the Funds;

(iv) to keep the Unit Holders informed of the Manager and performance of the Funds through the interim and annual reports; and

(v) to ensure that the interest of the Unit Holders is best served and protected at all times.

(c) Summary of Financial Position of the Management Company

Year Ended

31.12.10 (audited)

RM

Year Ended 31.12.11 (audited)

RM

Year Ended 31.12.12 (audited)

RM Issued and paid-up capital 15,000,000 15,000,000 15,000,000

Shareholders’ funds 14,330,972 11,550,253 13,353,288 Turnover 6,293,624 2,326,623 1,561,741 Pre-tax profit/loss 365,229 (2,780,221) (3,196,965) After tax profit/loss 300,229 (2,780,719) (3,196,965)

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(d) The Philosophy of the Management Company

The Manager is dedicated to building investment management solutions for its clients through an array of quality unit trusts funds and related investment products and services for investors. With in-depth investment and research process, and wealth of extensive experience, the Manager seeks to - § develop customized solutions for institutional investors; § offer the comfort of the financial strength and stability of an established parent

company; § identify undervalued companies with winning business models with superior

earning growth potential; and § consistently deliver superior performance.

(e) Board of Directors of the Manager

Puan Sri Shahrizan binti Abdullah is a Non-independent Non-executive Director of MIDF Amanah. She was appointed to the Board on 1 February 1986. She is the Chairperson of the Board of MIDF Amanah. She holds a Bachelor of Economics degree from University Malaya. She previously held the position of Senior Manager, Corporate Services, Permodalan Nasional Berhad. She is also a director of Choo Bee Metal Industries Berhad and several private companies.

Sharkawi bin Alis is an Independent Non-executive Director of MIDF Amanah. He is a Barrister-at-Law from Middle Temple, London where he was called in 1971. He served in the Malaysian Judicial and Legal Service in various capacities for eleven (11) years before he was appointed as Group Legal Advisor of Malaysia Mining Corporation Berhad in 1982. In January 1997, he joined the Securities Commission, Malaysia as Director of Market Supervision and subsequently as Director of Corporate Resources Division till his retirement in March 2003. He is also Chairman of the Board of MNRB Holdings Berhad, Malaysian Reinsurance Berhad, Takaful Ikhlas Sdn Bhd, MNRB Retakaful Berhad, Malaysian Re (Dubai) Ltd and Labuan Reinsurance (L) Ltd. He is a Director of Malaysian Industrial Development Finance Berhad, MIDF Amanah Investment Bank Berhad and MIDF Property Berhad.

Datuk Mohd Najib bin Hj. Abdullah is a Non-independent Non-executive Director of MIDF Amanah. He was appointed to the Board of MIDF Amanah on 18 August 2006. He holds a Bachelor of Science degree in Computer Science and Mathematics (Magna cum Laude) and a Masters’ degree in Business Administration from Northern Illinois University, USA. He is currently the Group Managing Director of Malaysian Industrial Development Finance Berhad effective from 8 July 2006 and also Chief Executive Officer of MIDF Amanah Investment Bank Berhad effective from 1 March 2012. He sits on the Board of MIDF Amanah Investment Bank Berhad, MIDF Property Berhad and ACR Retakaful Berhad. He is also a Commissioner of PT Miel Nusantara Development (a company incorporated in Indonesia) and a director of ACR Re Takaful MEA B.S.C.(c), Bahrain.

Dato’ Kalsom binti Abd. Rahman is a Non-independent Non-executive Director of MIDF Amanah. She was appointed to the Board on 21 May 2007. She holds a Bachelor of Economics (Honours) degree from the University of Malaya and a Masters degree in Business Administration (Finance) from the University of Oregon, USA. In addition, during her tenure of service with the public sector, she has also attended Graduate Business and Management courses at the University of Stanford and the Harvard Business School, as well as courses in policy formulations, international and economic relations and international trade and investments related areas organised by the various international organizations such as UNIDO, UNCTAD,

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ITC, WIPO, World Bank, WTO etc. She has served in various capacities in the Ministry of International Trade and Industry (“MITI”) including as Minister Counsellor (Economic Affairs) to the Mission of Malaysia to the European Union at Brussels, Belgium, the Chief Executive Officer of the Small and Medium Industries Development Corporation (“SMIDEC”) [now known as SME Corp] and her post before she retired from the public service was the Deputy Secretary-General (Industry) of MITI. Subsequently she became the Chairman of SMIDEC until October 2006. Currently she is a director of several companies such as MISC Berhad, Lion Forest Industries Berhad, Malaysian Industrial Development Finance Berhad, MIDF Amanah Investment Bank Berhad and Chairperson of the Board of MIDF Property Berhad. She also sits on the board of several private companies.

Abdul Rahim bin Abdul Hamid is an Independent Non-executive Director of MIDF Amanah. He was appointed to the Board on 8 June 2007. He is a Fellow of the Association of Chartered Certified Accountants and a member of the Malaysian Institute of Accountants. He has served various capacities in Coopers & Lybrand including positions as Audit Manager, Director, Partner and Managing Partner/CEO and was Deputy Executive Chairman of PricewaterhouseCoopers. He is a director of AEON Co. (M) Berhad, Petra Energy Berhad and Malaysian Debt Venture Berhad. He also sits on the board of several private companies. Azlan Hussin is the Chief Executive Officer/Executive Director of MIDFA. He graduated from Southbank University of London with honours degree in Accounting and Finance and also a graduate of Association of Chartered and Certified Accountants (ACCA) from Emile Woolf College, London. Encik Azlan has more than 16 years working experience in the fund management industry and started his career with SBB Asset Management (SBBAM, 1997–2005) as an Investment Analyst and was later promoted to Vice President of Investment. Subsequently, he left SBBAM to join AmanahRaya Investment Management (2005-2007) as a General Manager for Equity Investment. He later joined RHB Investment Management Sdn. Bhd. in 2007 and was appointed as Head of Investment/Chief Investment Officer in 2010. Encik Azlan joined MIDF Amanah as a Chief Investment Officer on 2 January 2013 and became the Chief Executive Officer/Executive Director with effect from 21 January 2013.

(f) Role of the Investment Committee

The Investment Committee formulates, establishes and implements investment strategies and policies. The Investment Committee will continually review and monitor the success of these strategies and policies using predetermined benchmarks towards achieving a proper performance for the Funds. The Investment Committee will also ensure investment guidelines and regulations are complied with. The Investment Committee will meet at least once every quarterly or more should the need arise.

(g) The Investment Committee Members

Abdul Rahim bin Abdul Hamid, independent member of the Investment Committee of MIDF Amanah, is an Independent Non-executive Director of MIDF Amanah. He was appointed to the Board on 8 June 2007. He is a Fellow of the Association of Chartered Certified Accountants and a member of the Malaysian Institute of Accountants. He has served various capacities in Coopers & Lybrand including positions as Audit Manager, Director, Partner and Managing Partner/CEO and was Deputy Executive Chairman of PricewaterhouseCoopersHe is a director of AEON Co. (M) Berhad, Petra Energy Berhad and Malaysian Debt Venture Berhad. He also sits on the board of several private companies. Dato’ Kalsom binti Abd. Rahman, non-independent member of the Investment Committee of MIDF Amanah, is a Non-independent Non-executive Director of MIDF Amanah. She was appointed to the Board on 21 May 2007. She holds a Bachelor of

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Economics (Honours) degree from the University of Malaya and a Masters degree in Business Administration (Finance) from the University of Oregon, USA. In addition, during her tenure of service with the public sector, she has also attended Graduate Business and Management courses at the University of Stanford and the Harvard Business School, as well as courses in policy formulations, international and economic relations and international trade and investments related areas organised by the various international organizations such as UNIDO, UNCTAD, ITC, WIPO, World Bank, WTO etc. She has served in various capacities in the Ministry of International Trade and Industry (“MITI”) including as Minister Counsellor (Economic Affairs) to the Mission of Malaysia to the European Union at Brussels, Belgium, the Chief Executive Officer of the Small and Medium Industries Development Corporation (“SMIDEC”) [now known as SME Corp] and her post before she retired from the public service was the Deputy Secretary-General (Industry) of MITI. Subsequently she became the Chairman of SMIDEC until October 2006. Currently she is a director of several companies such as MISC Berhad, Lion Forest Industries Berhad, Malaysian Industrial Development Finance Berhad, MIDF Amanah Investment Bank Berhad and Chairperson of the Board of MIDF Property Berhad. She also sits on the board of several private companies.

Teoh Chye Jin, independent member of the Investment Committee of MIDF Amanah, started his career in Bank Negara Malaysia in 1964. He joined Amanah Short Deposits Berhad (then known as Short Deposits (M) Berhad) (“ASD”) in 1972 and had served the company in various capacities including as the General Manager/Director since June 1979. He held the position as Executive Director of ASD from June 1997. After his retirement in 2001, he was on the Board and a member of the Investment Committee of Asia Unit Trusts Berhad until 18 March 2010.

(h) Key Personnel of the Manager

Azlan Hussin is the Chief Executive Officer/Executive Director of MIDFA. He graduated from Southbank University of London with honours degree in Accounting and Finance and also a graduate of Association of Chartered and Certified Accountants (ACCA) from Emile Woolf College, London. Encik Azlan has more than 16 years working experience in the fund management industry and started his career with SBB Asset Management (SBBAM, 1997–2005) as an Investment Analyst and was later promoted to Vice President of Investment. Subsequently, he left SBBAM to join AmanahRaya Investment Management (2005-2007) as a General Manager for Equity Investment. He later joined RHB Investment Management Sdn. Bhd. in 2007 and was appointed as Head of Investment/Chief Investment Officer in 2010. Encik Azlan joined MIDFA as a Chief Investment Officer on 2 January 2013 and became the Chief Executive Officer/Executive Director with effect from 21 January 2013. Azlan Azizuddin, Senior Vice President, Business Development, joined MIDF Amanah in April 2010. He has 22 years experience in the stock broking and fund management industry. He started his career in 1993 with Capital Corp Securities as an analyst and later proceeded to be a licensed dealer’s representative for KN Kenanga Bhd. He joined Affin Trust Management Bhd in 1997 as the Head of Research and Business Development and was promoted to Head of Investment for Affin Fund Management in 2003, managing a RM350 million investment portfolio ranging from Unit Trust, Corporate and Government Agencies to Insurance companies. He then joined an international corporate finance company, International Eurobond Consultant (IEC), leading a corporate finance team covering the Southeast Asia region namely Indonesia and Thailand. Prior to joining MIDF Amanah, he was the General Manager of AmanahRaya-JMF Asset Management Sdn Bhd, managing a total fund size of RM7.5 billion. Azlan graduated with a Bachelor Degree in Economics (Finance) from the University of Tasmania, Hobart, Australia. Licensed Fund Manager Representative under the Securities Industry Act (1983) since 2003.

Mohamed Sany Zainudin, Fund Manager, joined MIDF Amanah Asset Management in 1999. He has more than 23 years experience in the financial industry

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including 21 years in fund management. Sany started his career as an Investment Analyst with Amanah Merchant Bank (AMB) in 1990 researching on local / global economy, equities, and fixed income. Subsequently transferred to AMB’s Treasury in 1991 managing in-house propriety funds for almost 3 years before moving into Fund Management Division, managing external third-party funds (equities and fixed income) for another 5 years before being transferred to MIDF Amanah Asset Management. His investment focus has been and still is in Shariah, Ethical, Insurance, State/Quasi–Government, Unit Trusts, Trustee, Foundations and Corporate / Institutional based type funds (equities and fixed income) on relative and absolute benchmark basis. He graduated from University of Southern New Hampshire in 1989 with a double major degree in Bachelor of Science (Hons) in Economics-Finance and Business Administration / Management. He has been a qualified Certified Financial Planner since 2003 onwards. He holds a CMSRL issued by the SC under the CMSA. Azlina Abdul Aziz, Fund Manager, joined MIDF Amanah in March 2013. She has more than 16 years of experience in the financial industry including 11 years in fund management. Prior to joining MIDF Amanah she was a fund manager with RHB Investment Management (RHBIM) for 8 years. During her tenure there, she managed both equity and balance portfolios with a total value of RM450mil for various types of clients namely institutions, state funds, unit trusts and high net-worth individuals. Before RHBIM, she was a fund manager with Maybank Investment Management managing primarily high net-worth individuals. She graduated in 1996 from Ball State University, USA with a Bachelor of Science degree in Actuarial Science. She obtained and holds the CMSRL since 2001. Samania Osman, Fund Manager, joined MIDF Amanah in March 2013. She has over 20 years of working experience in the financial and fund management industry. She has vast knowledge and experience both in fixed income and equity market operations as well as money market and fixed income dealing. Prior to joining MIDF Amanah, she was a Senior Manager of Fixed Income in RHB Investment Management Sdn Bhd (RHBIM). Her primary roles among others are actively managing the designated fixed income portfolios. She also involves in strategic and tactical portfolio strategy and execution for the respective funds under management. She was an Assistant Manager, Fixed Income Dealing in Prudential Fund Management Sdn Bhd prior to joining RHBIM, where she co-managed the cash management funds and dealing primarily in the government securities, treasury bills and corporate bonds. She was also responsible in managing the liquidity and passive management of the feeder funds.

Prior to that, she was a Senior Executive in SBB Asset Management, where her primary roles were dealing in money market and corporate bonds. Other key roles include monitoring of compliance and investment limits. She started her career in Aseambankers mainly involved in various task in back office operations, fund accounting and securities administration.

She obtained and holds the CMSL since 2005.

Shermain Lew Woon Siew, Head of Operations, is overseeing all operations functions including asset management, unit trust and customer service of MIDF Amanah. She joined Asia Unit Trusts Berhad in June 2000. Prior to that, she was with Public Mutual Berhad. Shermain has more than 15 years’ experience in the unit trusts industry. She holds a Bachelor’s Degree in Business Administration from Curtin University, Australia.

(i) Material litigation

As at 2 January 2014, MIDF Amanah is not engaged in any material litigation and arbitration, including those pending or threatened, and there are no facts likely to give rise to any proceedings which might materially affect the business or financial position of MIDF Amanah.

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(j) Manager’s delegate

The Manager has delegated certain functions to Malaysian Industrial Development Finance Berhad and MIDF Amanah Investment Bank Berhad, an institution licensed by Bank Negara Malaysia and SC. The functions delegated by the Manager are as follows:

Malaysian Industrial Development Finance Berhad • Finance • Human Resource • Administration • Secretarial and Legal • Internal Audit • Information Technology • Quality Management • Corporate Communications MIDF Amanah Investment Bank Berhad • Compliance

Dahlia Mohd Razali is the designated person responsible for the Manager’s compliance matters. Her profile is as follows: “Dahlia Mohd Razali, Senior Compliance Officer of MIDF Amanah Investment Bank Berhad (“MIDF Investment”) joined MIDF Investment in 2007 as the Compliance Officer, for the Legal & Compliance Department. She graduated with Bachelor of Arts (Hons) in Business Administration, majoring in Finance from De Montfort University, UK in 1996 and joined MIDF in October 1996. She has more than 17 years of working experience in the areas of audit and compliance”.

• Risk Management

Corporate Information

Malaysian Industrial Development Finance Berhad (“MIDF”) was incorporated on 30 March 1960 mainly for the purpose of ensuring access to financing for manufacturing-based small-and-medium enterprises (SMEs) as part of Malaysia’s strategy to expedite the industrial sector development. From boasting the status as Malaysia’s premier industrial development finance institution, MIDF has over the years transformed into a diversified group.

Following its merger with Amanah Capital Partners Berhad (now known as MIDF Amanah Capital Berhad) in 2003, the acquisition of Utama Merchant Bank Berhad (“UMBB”) in 2004, and the establishment of MIDF Amanah Investment Bank Berhad in 2006, the MIDF Group accentuated its ambition to become a leading financial services provider in three core business areas, namely investment banking, asset management and development finance.

MIDF Amanah Investment Bank Berhad (“MIDF Investment”), is the result of the integration of four subsidiaries within the MIDF Group, namely Amanah Short Deposits Berhad (now known as MIDF ASD Berhad) (under members' voluntary liquidation), Malaysia Discount Berhad (now known as MIDF MDB Berhad) (under members' voluntary liquidation), MIDF Sisma Securities Sdn. Bhd (now known as MIDF MS Sdn Bhd) (under members' voluntary liquidation) and UMBB. MIDF Investment takes pride in its comprehensive range of investment banking-related services including financial advisory, underwriting of equities and debt instruments, treasury activities and equity brokerage service.

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(13) THE TRUSTEES

(i) AmanahRaya Trustees Berhad (ART)

(a) Profile AmanahRaya Trustees Berhad (ART) was incorporated under the Companies Act 1965 on 23 March 2007 and registered as a trust company under the Trust Companies Act 1949. ART is a subsidiary of Amanah Raya Berhad (ARB) which is wholly owned by the Minister of Finance (Incorporated). ART took over the corporate trusteeship functions of ARB and acquired ARB’s experience of more than 47 years in trustee business. ART has been registered and approved by the SC to act as trustee to unit trust funds and has 177 unit trust funds under ART’s trusteeship. As at 2 January 2014, ART has 79 staff (57 Executives and 22 Non-Executives).

ART has an authorised capital of RM5,000,000. Its issued and paid-up share capital is RM2,000,000 and RM1,000,000 respectively.

The shareholders of ART are:

% of equity Amanah Raya Berhad (344986-V) 20 AmanahRaya Development Sdn Bhd (546094-U) 20 Amanah Raya Capital Sdn Bhd (549057-K) 20 AmanahRaya Investment Bank Ltd (LL03749) 20 AmanahRaya Hartanah Sdn Bhd (760290-W) 20

(b) Financial Highlights

The following is a summary of the past performance of ART based on audited accounts for the past (3) years:

31.12.2010 31.12.2011 31.12.2012

Paid-Up Share Capital (RM ‘000)

1,000 1,000 1,000

Shareholders’ Funds (RM ‘000)

3,214 5,263 7,140

Turnover (RM ‘000)

24,847 26,908 28,307

Pretax Profit (RM ‘000)

18,265 20,246 21,481

Profit After Taxation (RM ‘000)

13,590 14,549 15,877

(c) Board of Directors

As at the 2 January 2014, the Board of the Trustee are as follows:

Name Designation

Datuk Idrus Bin Harun Chairman

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Dato’ Rahim Bin Abu Bakar Director

Dato’ Haji Ismail Bin Ibrahim Director

Dato’ Haji Che Pee Bin Samsudin Director

Tuan Haji Ab. Gani Bin Haron Director

Tuan Haji Mansor Bin Salleh Director

Tuan Haji Zulkifly Bin Sulaiman Director

(d) Key Management Staff

As at the 2 January 2014, the key personnel of the Trustee are as follows:

Name Designation

Hajjah Habsah Binti Bakar Chief Executive Officer

Zainudin Bin Hj. Suhaimi General Manager

Arzlee Bin Abdul Rahman Assistant General Manager

Norhaslinda Binti Samin Company Secretary

Jerry Jesudian S/O Joseph Alexander Joint Company Secretary

Azril Bin Abd Kadir Compliance and Audit Department Senior

Manager

Amir Tarmizi Bin Abdul Hamid Operations Department Manager

Hajjah Farah Farhanah Binti Fuad Operations Department Manager

Yazmin Binti Mohamed Amin Finance and Administration Department

Manager

Zulhida Binti Abd Maurad Legal Department Manager

Noor Aniza Binti Md Noor Marketing & Business Development

Department Manager

Fazila Banoo Binti Manzur Elahi Chief Executive Officer’s Office, Manager

(e) Disclosure of Material Litigation and Arbitration

As at 2 January 2014, there is no litigation and arbitration, including those pending or threatened, and any facts likely to give rise to any proceedings which might materially affect the business/financial position of the Trustee.

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ii) Profile of Maybank Trustees Berhad

Maybank Trustees Berhad (5004-P) is the Trustee of the Fund with its registered office at 8th Floor, Menara Maybank, 100 Jalan Tun Perak, 50050 Kuala Lumpur.

Maybank Trustees Berhad (“MTB”) was incorporated on 12 April 1963 and registered as a Trust Company under the Trust Companies Act 1949 on 11 November 1963. It was one of the first local trust companies to provide trustee services with the objective of meeting the financial needs of both individual and corporate clients.

Summary of Maybank Trustees Berhad’s Financial Position

The following is a summary of the past performance of MTB based on audited financial statements for the past 3 financial years:

Year Ended

31 December

2013 (unaudited)

31 December

2012

RM

31 December

2011*

RM

30 June

2011

RM

Paid-up capital 500,000 500,000 500,000 500,000

Shareholders’ funds 21,002,473 12,107,452 8,678,875 6,239,462

Turnover 21,316,197 14,047,931 6,506,087 9,784,269

Profit Before Taxation 11,826,263 4,571,241 3,242,278 3,168,312

Profit After Taxation 8,895,021 3,428,577 2,439,413 2,338,086

* Change of financial year to 31 December by Maybank Group with effect from 1st July 2011

Experience in Trustee Business

With more than 22 years of experience as Trustee to unit trust funds/schemes, Maybank Trustees Berhad has under its trusteeship a total of sixty two (62) unit trust funds and four (4) real estate investment trust/property trust funds as at 2 January 2014. We have been appointed as Scheme Trustee for one (1) Private Retirement Scheme recently.

Board of Directors

1. En Zainal Abidin Jamal - Non Independent Non-Executive Director & Chairman

2. Dato’ Mohd. Hanif bin Suadi - Non Independent Non-Executive Director

3. Dato’ Dr Tan Tat Wai - Independent Non-Executive Director

4. Ms Ong Sau Yin - Independent Non-Executive Director

Key Personnel

As at 2 January 2014, the Trustee has a total of thirty five (35) staff, comprising twenty five (25) executives and ten (10) non-executives.

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Ms Eunice Chan, Chief Executive Officer

Ms Eunice Chan was appointed as the Director of Securities Services of Maybank and Chief Executive Officer of Maybank Trustees Berhad with effect from 1 November 2012. Prior to her appointment, Eunice was the Director of Custodial Services. She joined Maybank Group in 1997 as Head of Business Operations in Mayban Unit Trust Berhad. She has extensive experience in business operations of the unit trust and she oversees the fund distribution, network management and operational activities of the company. In 2007, she was appointed as the Head of Business Project Management in Service Level Management and Quality cum Strategic Planning and Performance Management in the Chief Operating Officer’s office. In 2009, she was seconded to the Transformation Office to spearhead the Project Management Office in charge of restructuring initiatives of the Bank. Prior to joining Malayan Banking Berhad, she was with the New Zealand Stock Exchange. She holds a Bachelor of Commerce and Administration from the Victoria University of Wellington, New Zealand.

Mr Samuel Hwa Head, Business Development & Strategies

Mr Samuel Hwa joined MTB in August 2013. He holds a Bachelor of Law degree from the University of London and a Bachelor of Science in Business from Pennsylvania State University double majoring in Finance and Marketing/Management. He started his career in America as a business analyst and later joined an insurance company in Malaysia. Prior to joining Maybank, he was with CIMB Investment Bank Berhad. Samuel has worked in the Securities Services industry for over 5 years. Mr C. Dinesh Head, Legal Mr. Dinesh joined MTB as Head, Legal in 2008. He graduated from University of Malaya with an LLB (Honours) Degree in 1994 and was called to the Malaysian Bar in 1995. Prior to joining MTB, he was an advocate and solicitors handling commercial banking and corporate matters.

Trustee’s Statement of Responsibility The Trustee has given its willingness to assume the position and all the obligations that come along with them under the Deed of the Fund and all relevant written laws. The Trustee is entitled to be indemnified out of the assets of the Fund for any liability incurred by the Trustee in performing or exercising any of its powers or duties in relation to the Fund. This indemnity is in addition to any indemnity allowed by law. However, it does not extend to liabilities arising from a breach of trust or failure to show the due care and diligence required of the Trustee having regard to its powers, authorities, and discretions under the Deed. Duties and Responsibilities of the Trustee The Trustee’s role is mainly to act as custodian of the Fund and to exercise all due diligence and vigilance in carrying out its functions and duties and to safeguard the rights and interests of the Unitholders. Apart from being the legal owner of the Fund’s assets, the Trustee is responsible for ensuring that the Manager performs its obligations in accordance with the provisions of the Deed and the relevant laws.

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Material Litigation and Arbitration

As at 2 January 2014, save for the suits mentioned herein below, the Trustee is not engaged in any material litigation as plaintiff or defendant and the Trustee is not aware of any proceedings, pending or threatened or of any facts likely to give rise to any proceedings which might materially and adversely affect its financial position or business. 1. The bondholders of the Al-Bai Bithaman Ajil [ABBA] bonds [bondholders] issued by Pesaka Astana (M) Sdn Bhd [PASB] have sued PASB for its failure to meet its bonds payment obligations under Kuala Lumpur High Court Civil Suit No. D5(D6)-22-1810-2005 [the ABBA Suit] and cited the Trustee as one of 12 co-defendants in the ABBA Suit. The claim in the ABBA Suit is for RM149,315,000.00 or any other sum that the Court deems fit. The other defendants in the ABBA Suit include among others the Facility Agent, PASB’s Chief Executive Officer, one of PASB’s directors and associate companies of the Chief Executive Officer and the said director. The Trustee has defended the ABBA Suit and its trial has concluded. The Trustee had appealed against the decision made by the High Court on 30 June 2010 in respect of the ABBA Suit in awarding judgement against it and another Defendant. The appeals proceeded on 22, 23, 26, 27, 28, 29 and 30 September 2011 and 3 October 2011. The Court of Appeal had on 8 November 2011 awarded the Trustee and the Facility Agent a limited indemnity against PASB, PASB’s Chief Executive Officer, one of PASB’s directors and associate companies of the Chief Executive Officer and the said director but found the Trustee and the Facility Agent equally liable to the bondholders. The Federal Court had on 5 April 2012 granted the Trustee leave to appeal to the Federal Court against certain parts of the decision of the Court of Appeal [Federal Court Appeal]. The Federal Court Appeal was heard on 6, 7, 8, 20, 21 and 23 November 2012 and on 2, 3 and 4 January 2013. The hearing dates of 17 to 19 October 2012 and 19 November 2012 were vacated. Decision is reserved to a date to be notified by the Federal Court. 2. Connected to the ABBA Suit, Amanah Short Deposits Berhad [now MIDF Amanah Investment Bank Berhad (MIDF)], a Noteholder of the Combined Commercial Papers and/or Medium Term Notes/Letters of Credit/Financial Guarantee Facilities [CP/MTN] totalling RM13 million and issued by PASB, has also sued PASB for full payment under the CP/MTN arising from a cross-default by PASB under its ABBA bonds under Kuala Lumpur High Court Civil Suit No. D2-22-1085-2006 [the CP/MTN Suit]. The Trustee was cited as one of 5 co-defendants in the CP/MTN Suit. The claim in the CP/MTN Suit is for RM13 million or any other sum that the Court deems fit and damages. The other defendants in the CP/MTN Suit are the Facility Agent, PASB’s Chief Executive Officer and one of PASB’s directors. The Trustee is defending the CP/MTN Suit. The trial of the CP/MTN Suit is stayed until the determination of the Federal Court Appeal. The Trustee has obtained leave of the court to proceed with the actions against PASB given that further to an unrelated suit a provisional liquidator had been appointed against PASB. The Trustee has also obtained leave of the court to proceed with the actions against PASB following the court's order to wind-up PASB further to the unrelated suit. In any event, any successful claim that may be established against the Trustee will be covered by the Trustee’s insurer and/or Malayan Banking Berhad as the ultimate holding company of the Trustee. As such, the ABBA Suit and the CP/MTN Suit will not materially affect the business or financial position of the Trustee. 3. Several holders of the bonds [bondholders] issued by Aldwich Berhad [In Receivership] [Aldwich] have sued Aldwich for its failure to settle its indebtedness to the bondholders following the default of the said bonds in 2010 and cited the Trustee as one of 6 co-defendants under Kuala Lumpur High Court Suit No. D-22NCC-1622-11/2012 [the Aldwich Bondholders’ Suit]. The claim against the Trustee is for the sum of RM177,248,747.31 or any other sum that the Court deems fit. The other defendants are the holding company of Aldwich, the Chief Executive Officer of the holding company of Aldwich, the Security Agent and the Reporting Accountant. The Trustee does not admit liability to the Aldwich Bondholders’ Suit and shall defend it. The Aldwich Bondholders’ Suit will not materially affect the business or

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financial position of the Trustee. Trial commenced on 25 November 2013 and will continue on 10 to 14 March 2014, 17 to 21 March 2014, 24 to 28 March 2014 and 31 March to 4 April 2014. The Trustee reiterates that it has in place a strong team of professionals with priority chiefly on protecting the interest of all stakeholders and upholding best standards of service and management practice.

(iii) Duties And Obligations Of Trustees

The Trustee’s role is mainly to act as custodian of the Fund and to exercise all due diligence and vigilance in carrying out its functions and duties and to safeguard the rights and interests of the Unit Holders. Apart from being the legal owner of the Fund’s assets, the Trustee is responsible for ensuring that the Manager performs its obligations in accordance with the provisions of the Deed and the relevant laws.

(iv) Statement Of Responsibility By The Trustees

AmanahRaya Trustees Berhad and Maybank Trustees Berhad have given their willingness to assume the positions and all the obligations that come along with them under the respective Deeds of the Funds and all relevant written laws. The Trustees are entitled to be indemnified out of the assets of the Funds for any liability incurred by the Trustees in performing or exercising any of their powers or duties in relation to the Funds. This indemnity is in addition to any indemnity allowed by law. However, it does not extend to liabilities arising from a breach of trust or failure to show the due care and diligence required of the Trustees having regard to its powers, authorities and discretions under the Deed.

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(14) THE SHARIAH ADVISER

Since 1 November 2010, MIDF Amanah Asset Management Berhad ("MIDF Amanah") had appointed the Shariah Adviser, comprising 3 individual members, for its Islamic Funds.

Roles and Responsibilities of the Shariah Adviser

In line with the Securities Commission Guidelines, the roles of the Shariah Adviser are as follows;

1. To ensure that the Shariah-compliant unit trust funds are managed and administered

in accordance with the Shariah principles;

2. To provide expertise and guidance for the Funds in all matters relating to Shariah principles, including on the Funds’ deed and prospectus, its structure and investment process, and other operational and administrative matters;

3. To consult the SC who may consult the Shariah Advisory Council whenever there is

any ambiguity or uncertainty as to an investment, instrument, system, procedure and/or process;

4. To scrutinise the Funds’ compliance report as provided by the compliance officer,

transaction report provided by or duly approved by the trustee and any other report deemed necessary for the purpose of ensuring that the Funds’ investments are in line with the Shariah principles;

5. To prepare a report for inclusion in the Funds’ interim and annual report certifying

whether the Funds have been managed and administered in accordance with the Shariah principles;

6. To ensure that the Funds comply, with any guideline, ruling or decision issued by the

SC, with regard to Shariah matters;

7. To vet and advise on the promotional materials of the Funds;

8. To assist and attend any ad-hoc meeting called by the SC and/or any other relevant authority.

The Shariah Adviser is responsible for advising the fund managers and/or the Investment Committee on the selection of investment tools to be adopted, as well as on the mechanism of operations for activities of the Islamic funds/accounts, in order to ensure that the operations of the Islamic funds/accounts comply with Shariah principles at all times. The Shariah Adviser is scheduled to meet the fund managers on quarterly basis, where it will advise on the selection of investment tools to be adopted as well as the mechanism of the operations of the Funds’ activities in order to ensure that the operations of the Funds comply with Shariah principles at all times. The Shariah Adviser will review the Funds’ investments on a monthly basis as to ensure compliance with Shariah requirements at all times and meet with the Manager on a bi-monthly basis to review and advise on the Funds’ compliance with Shariah requirements. The final responsibility for ensuring Shariah compliance of the Funds with Shariah requirements in all relevant aspects rests solely with the Manager.

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Profiles of the members of the Shariah Adviser

The profiles of the Shariah Adviser are as follows;

Ir. Dr. Hj. Muhamad Fuad Abdullah

He is the Chairman of Shariah Committee of Malaysian Industrial Development Finance Berhad (“MIDF”) and a director of MIDF. He is a member of the Board Executive Committee, Board Audit and Risk Management Committee and the Nomination and Remuneration Committee of MIDF.

He holds a Doctorate in Muslim Civilisation from Aberdeen University, Scotland and a BA (Jayyid) in Shariah from Jordan University, Jordan; beside a BSc (Hons) and Masters Degree in Engineering from Southampton University. He is a Fellow of the Institution of Engineers Malaysia. He is also a registered Shariah lawyer of Majlis Agama Islam Negeri Perak. He is currently a Board member of Mesiniaga Berhad, Institute Kefahaman Islam Malaysia (“IKIM”), MIDF Property Berhad, MIEL Logistics Sdn. Bhd., Sime Darby Berhad and Sime Darby Property Berhad. He is the Chairman of Shariah Committee of MNRB Retakaful Berhad and a member of the Shariah Advisory Committee of BIMB Securities Sdn. Bhd. He is also a member of Majlis Agama Islam Wilayah Persekutuan and the Chairman of Hospital Pusrawi Sdn. Bhd.

Dato’ Haji Muhamad Asri Haji Abdullah

He is a member of MIDF Shariah Committee. He holds a Degree in Shariah and Islamic Studies from University of Baghdad and a Diploma in Islamic Administration and Judiciary from International Islamic University of Malaysia. He has also seated for a Special Course for Islamic Officer at the Muslim College in London, United Kingdom as well as a Certificate of Attainment of English Language from ELS Richmond, London, United Kingdom. He had served various positions such as Head, Dakwah and Information Section, Kadi, Chief Kadi, Chief Justice, Chief Justice and Appeal Court Judge at the Federal Shariah Court of Appeal. Currently, Dato’ Haji Muhamad Asri is the Chief Shariah Judge and Head of Shariah Judiciary Department of Perak. Other than the above, he is also on the Panel of Shariah Appeal Court for the States in Malaysia and a Member of the Technical Committee for Civil and Shariah Law Malaysia. He is registered with the Securities Commission as an independent Shariah Adviser since 30 January 2007.

Dr. Mohamed Fairooz Abdul Khir

Dr. Mohamed Fairooz Abdul Khir was appointed as a member of MIDF Amanah Asset Management Berhad on 1st November 2012. He holds a Degree in Islamic Revealed Knowledge and Human Science majoring in Fiqh and Usul al-Fiqh from International Islamic University Malaysia (“IIUM”) and a Masters Degree in Shariah from University of Malaya. He holds a Doctorate in Islamic Finance from University of Malaya sponsored by Bank Negara Malaysia. Since 2000 he served in the education line and was a Lecturer at IIUM Centre for Foundation Studies. He is currently attached with International Shariah Research Academy for Islamic Finance (“ISRA”) since year 2010 as a Researcher. Being a Researcher in ISRA, he is actively involved in the research and publications of Shariah related issues, fatwas as well as Islamic finance parameters. He is the Chairman of Shariah Committee of Bank Pertanian Malaysia Berhad (Agrobank) since 2012. He is also a member of Shariah Committee of Maybank Islamic Berhad and MNRB Retakaful Berhad. Previously, he was a member of MIDF Shariah Committee from 1st May 2011 until 17th June 2013.

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(15) SALIENT TERMS OF THE DEED UNIT HOLDERS’ RIGHTS AND LIABILITIES A unit holder is a person registered in the register as a holder of units or fractions of units in a fund which automatically accord him rights and interest in the fund. Unit Holders’ Rights A Unit Holder has the right, amongst others: 1. to receive distributions, if any, of that Fund; 2. to participate in any increase in the NAV of Units of that Fund; 3. to call for Unit Holders’ Meetings and to vote for the removal of the Trustee or the Manager

through an extraordinary resolution; 4. to exercise the cooling-off right; 5. to receive annual and interim reports on that Fund; and 6. to exercise such other rights and privileges as provided for in the Deed. A Unit Holder would not, however, have the right to require the transfer to the Unit Holder of any of the investments of the Funds. Neither would a Unit Holder have the right to interfere with or to question the exercise by the Trustee (or the Manager on the Trustee’s behalf) of the rights of the Trustee as trustee of the investments of the Funds. Unit Holders’ Liabilities No Unit Holder shall by reason of the provisions of the Deed and the relationship created hereby between the Unit Holder, the Trustee and the Manager be liable for any amount in excess of the selling price paid for the Units as determined pursuant to the Deed at the time the Units were purchased and any charges payable in relation thereto pursuant to the Deed and shall not be under any obligation to indemnify the Trustee and/or the Manager in the event that the liabilities incurred by the Trustee and the Manager in the name of or on behalf of the Trust pursuant to and/or in the Funds, and any right of indemnity of the Trustee and/or the Manager shall be limited to the recourse from the Funds. MAXIMUM FEES AND CHARGES PERMITTED BY THE DEED

Fund Sales Charge

Repurchase Charge Management Fee Trustee Fee

MAGF 10.00% of the NAV per Unit

Nil

1.5% of the NAV of the Fund before the deduction of the management fee for the relevant day.

Up to 0.08% per annum of the Fund’s NAV calculated on a daily basis.

MASF 10.00% of the NAV per Unit

Nil



MAIF 10.00% of the NAV per Unit

Nil



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MADF 10.00% of the NAV per Unit

Nil



MAMMF 10.00% of the NAV per Unit

Nil



MASMMF 10.00% of the NAV per Unit

1.00% of the NAV per Unit

1.5% of the NAV of the Fund.

0.1% of the NAV of the Fund, subject to a minimum of RM18,000.00 per annum.

A lower fee and/or charges than what is stated in the Deed may be charged, all current fees and charges are disclosed in this Master Prospectus. Any increase of the fees and/or charges above the stated in the current Master Prospectus may be made provided that a supplemental prospectus is issued and the maximum stated in the Deed shall not be breached. Any increase of the fees and/or charges above the maximum stated in the Deed shall require Unit Holders’ approval. OTHER EXPENSES OF THE FUNDS Only the expenses which are directly related and necessary to the business of the Funds may be charged to the Funds. These include: (i) commission/fees paid to brokers in effecting the dealings in the investments of the Funds,

shown on the contract notes or confirmation notes or different accounts; (ii) tax and other duties charged on the Funds by the Government and other authorities; (iii) the fee and other expenses properly incurred by the Auditors and all professional and

accounting fees and disbursements approved by relevant Trustee; (iv) fees for valuation of any investment of the Funds by independent valuers for the benefit of the

Funds; (v) costs incurred for the modification of the Deed other than those for the benefit of the Manager

or Trustee; (vi) costs incurred for any meeting of Unit Holders other than those convened by the Manager or

Trustee for its own benefit; (vii) the costs of printing and dispatching to Unit Holders the accounts of the Funds, tax

certificates, distribution warrants, notices of meeting of Unit Holders, newspaper advertisement and such other similar costs as may be approved by the relevant Trustee; and

(viii) any other expenses properly incurred by the relevant Trustee in the performance of its duties and responsibilities.

PROCEDURES TO INCREASE THE DIRECT AND INDIRECT FEES AND CHARGES Sales Charge The Manager may not charge a sales charge at a rate higher than that disclosed in a prospectus unless: (a) the Manager has notified the Trustee in writing of the higher rate and the date on which such

higher rate is to become effective; (b) a supplemental prospectus stating the higher rate is issued thereafter; and

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(c) such time as may be prescribed by any relevant law shall have elapsed since the supplemental prospectus is issued.

Repurchase Fee The Manager may not charge a Repurchase Fee at a rate higher than that disclosed in a prospectus unless: (a) the Manager has notified the Trustee in writing of the higher rate and the date on which such

higher rate is to become effective; (b) a supplemental prospectus stating the higher rate is issued thereafter; and (c) such time as may be prescribed by any relevant law shall have elapsed since the

supplemental prospectus is issued. Annual Management Fee The Manager does not intend to impose an Annual Management Fee at a rate higher than that disclosed in a prospectus unless: (a) the Manager has come to an agreement with the Trustee on the higher rate; (b) the Manager has notified the Unit Holders of the higher rate and the date on which such

higher rate is to become effective; (c) a supplemental prospectus stating the higher rate is issued thereafter; and (d) such time as may be prescribed by any relevant law shall have elapsed since the

supplemental prospectus is issued. Annual Trustee Fee The Trustee may not charge an Annual Trustee Fee at a rate higher than that disclosed in a prospectus unless: (a) the Manager has come to an agreement with the Trustee on the higher rate; (b) the Manager has notified the Unit Holders of the higher rate and the date on which such

higher rate is to become effective; (c) a supplemental prospectus stating the higher rate is issued thereafter; and (d) such time as may be prescribed by any relevant law shall have elapsed since the

supplemental prospectus is issued. RETIREMENT, REMOVAL AND REPLACEMENT OF THE MANAGER Subject to the approval of the SC, the Manager shall have the power to retire in favour of some other corporation and as necessary under any written law upon giving to the Trustee twelve (12) months' notice in writing of its desire so to do, or such lesser time as the Manager and the Trustee may agree, and subject to fulfilment of the conditions as stated in the Deed. The Manager may be removed and another corporation appointed as manager by a special resolution of the Unit Holders at a duly convened meeting of which notice has been given to the Manager, the Trustee and the Unit Holders. The Manager may be removed and replaced, if so required by the Trustee, on the grounds that: (a.) the Manager has failed or neglected to carry out its duties to the satisfaction of the Trustee

and the Trustee considers that it would be in the interest of the Unit Holders for it to do so after the Trustee has given notice to it of that opinion and the reasons for that opinion, and has considered any representations made by the Manager in respect of that opinion and after consultation with the SC and with the approval of the Unit Holders; or

(b.) The Manager has gone into liquidation except for the purpose of amalgamation or reconstruction or some similar purpose, or has had a receiver appointed or has ceased to carry on business.

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In any of the cases aforesaid the Manager for the time being shall upon receipt of such notice by the Trustee cease to be the Manager and the Trustee shall by writing appoint some other corporation approved by the SC to be the manager of the Funds subject to such corporation entering into a Deed or Deeds with the Trustee and thereafter act as manager during the remainder of the period of the Funds. RETIREMENT, REPLACEMENT AND REMOVAL OF TRUSTEE The Trustee may retire upon giving twelve (12) months’ notice to the Manager of its desire to do so or such shorter period as the Manager and the Trustee shall agree, and may, in accordance to the Deed, appoint in its stead or as an additional trustee a new trustee approved by the SC and under any written law. On the retirement of the Trustee under the foregoing provision the Manager shall be entitled to appoint in writing some other corporation approved by the SC to be the trustee of the Funds. The Trustee shall on retirement vest the Funds or cause it to be vested in such new trustee and shall deliver to such new trustee all books, documents, records and other property whatsoever relating to the Funds. The costs and expenses incidental thereto shall be paid from the Funds. The new trustee so appointed shall execute a Deed in such form as the Manager and the SC may require whereby such new trustee shall undertake to the Manager and Unit Holders jointly and severally all the obligations of the retiring Trustee under the Deed and from the date thereof the retiring Trustee shall be absolved and released from all further obligations hereunder PROVIDED THAT any release so provided for and given in accordance with the Deed shall not extend to any antecedent neglect by or act or default of such retiring Trustee. The new trustee shall and may thereafter exercise all the powers and enjoy all the rights and shall be subject to all duties and obligations for the Trustee hereunder as fully as though such new trustee had been originally named as a party hereto. TERMINATION OF THE FUNDS A Fund may be terminated or wound-up upon the occurrence of any of the following events:- (a) the SC’s approval is revoked under Section 212 (7)(A) of the Act; (b) a special resolution is passed at a Unit Holder’s meeting to terminate or wind-up that Fund,

following the occurrence of events stipulated under Section 301(1) of the Act and the court has confirmed the resolution, as required Section 301(2) of the Act;

(c) a special resolution is passed at a Unit Holders’ meeting to terminate or wind-up the Fund; (d) the Fund has reached its maturity date as specified in the Deed (if applicable); or (e) the effective date of an approved transfer scheme, as defined under the Guidelines, has

resulted in the Fund, which is the subject of the transfer scheme, being left with no asset/property.

UNIT HOLDERS’ MEETING A Unit Holders’ meeting may be called by the Manager, Trustee and/or Unit Holders. Any such meeting must be convened in accordance with the Deed and/or the Guidelines. Every question arising at any meeting shall be decided in the first instance by a show of hands unless a poll is demanded or if it be a question which under the deed requires a special resolution, in which case a poll shall be taken. On a show of hands every Unit Holder who is present or by proxy shall have one vote. The quorum for a meeting of Unit Holders of a Fund is five (5) Unit Holders of the Fund, whether present in person or by proxy, provided always that for a meeting which requires a special resolution the quorum for that meeting shall be five (5) Unit Holders, whether present in person or by proxy, holding in aggregate at least twenty five percent (25%) of the Units in issue for the Fund at the time of the meeting. If the Fund has five (5) or less Unit Holders, the quorum required shall be two (2) Unit Holders, whether present or by proxy and if the meeting requires a special resolution the quorum for that meeting shall be two (2) Unit Holders, whether present in person or by proxy, holding in aggregate at least twenty five percent (25%) of the units in issue for that Fund at the time of the meeting.

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(16) CONFLICT OF INTEREST AND RELATED PARTY TRANSACTIONS

The Manager

Save as disclosed below, as at 2 January 2014, the Manager is not aware of any existing or potential related party transactions involving the Funds, the Manager, promoters, vendors and/or persons connected to them:

Name of Party Name of Related Party and

Nature of Relationship

Existing/ Potential Related Party Transaction

The Manager 1. Malaysian Industrial Development Finance Berhad (“MIDF”);

2. MIDF Amanah Investment Bank Berhad (“MIDF Investment”);

Delegate: MIDF is the Manager’s appointed delegate for its finance, human resource, administration, secretarial and legal, internal audit, information technology, quality management and corporate communications functions. MIDF Investment is the Manager’s appointed delegate for its compliance and risk management functions. Rental of office space: The Manager has entered into a sub-tenancy agreement with MIDF for the lease of the office premise located at Level 3A, Menara MIDF, No. 82, Jalan Raja Chulan, 50200 Kuala Lumpur.

It is the Manager’s policy that all transactions with any related parties are entered into in the normal course of business and have been established on terms and conditions that are not materially different from that obtainable in transactions with unrelated parties and dealings with the related parties are transacted at arm’s length basis. The Manager has in place policies and procedures to prevent and deal with any conflict of interest situations that may arise such as the regular disclosure of securities dealing by all employees, directors and members of the Investment Committee to the compliance department for verification. In addition, there are adequate segregation of duties to ensure proper checks and balances are in place in the areas of fund management, sales administration and marketing. Policies and procedures are also in place to deal with any potential conflict of interest where members of the Investment Committee are also directors of other asset management companies. Where conflicts of interest arise, members of the Investment Committee will abstain from making a decision. Subject to any legal requirement, the Manager, or any related corporation of the Manager, or any officers or directors of any of them, may invest in the Funds. The directors of the Manager will receive no payments from the Funds other than distributions that they may receive as a

110

result of investment in the Funds. No fees other than the ones set out in this Master Prospectus have been paid to any promoter of the Funds or the Manager for any purpose. The Manager has also internal policies which regulates its employees’ securities dealings. The Trustees

AmanahRaya Trustees Berhad (“ART”)

(a) ART shall not place itself in a position where there is an actual conflict of interest or

where such conflict may potentially exist. In this respect, ART shall ensure that there is no actual or potential conflict of interests between ART and the following persons: • The unit trust management company (UTMC); • Any delegates of the UTMC; • Any associated or related company of the UTMC; • The Issuer of Private Debt Securities; and • Any associated or related company of the issuer

(b) In addition to the above, ART shall ensure that there is no actual or potential conflict

of interest between its appointed delegate and any of the persons listed above.

(c) Notwithstanding the above, actual or potential conflict of interest is permitted only in a situation where the unit trust fund is not disadvantaged by the situation of conflict.

(d) ART and/or the UTMC shall not enter into “self-dealing” transactions. (e) ART shall not allow a loan to the UTMC, issuer or any members of committee, bodies

or association whatsoever that is related to the management of the unit trust fund for which ART is the trustee.

(f) ART shall refuse to use the unit trust funds to buy shares of the management

company. (g) ART shall refuse to use the unit trust funds to buy share of a related company of the

management company which is a takeover target, where the motive of the direction from the management company is solely to assist the related company’s defence of the takeover bid.

(h) ART shall not engage itself in any of churning activities. Churning is the abuse where

a fiduciary, without regard to the interest of its beneficiary, encourages or deliberately leads it to trade excessively and thereby gains from the excessive trading activities.

Maybank Trustees Berhad (“MTB”)

As the Trustee for MASMMF, there may be related party transactions involving or in connection with the Fund in the following events:

(i) where the Fund invests in instrument(s) offered by the related party of MTB (e.g.

placement of monies, structured products, etc); (ii) where the Fund is being distributed by the related party of MTB as IUTA; (iii) where the assets of the Fund are being custodised by the related party of MTB both

as sub-custodian and/or global custodian of that Fund (MTB’s delegate); and (iv) where the Fund obtains financing as permitted under the Guidelines, from the related

party of MTB.

MTB has in place policies and procedures to deal with any conflict of interest situation. MTB will not make improper use of its position as the owner of the Fund's assets to gain, directly or indirectly, any advantage or cause detriment to the interests of Unit Holders. Any related party transaction is to be made on terms which are best available to the Fund and which are not less favourable to the Fund than an arms-length transaction between independent parties.

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Subject to any legal requirement, MTB, or any related corporation of MTB, or any officers or directors of any of them, may invest in the Fund. The directors of MTB will receive no payments from the Fund other than distributions that they may receive as a result of investment in the Fund. No fees other than the ones set out in this Master Prospectus have been paid to MTB (either to become a trustee or for other services in connection with the Fund), for any purpose.

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(17) CONSENT (a) The consent of the Trustees, the Manager’s delegates, the Auditors, the Bankers, Tax

Adviser, Shariah Adviser and Solicitors for the inclusion in this Master Prospectus of their names in the manner and form in which such names appear have been given before the issue of this Master Prospectus and none of them have subsequently withdrawn their written consents.

(b) The Tax Adviser has given their consent to the inclusion of their name and the Tax Adviser’s

letter on Taxation of the Fund and Unit Holders in the form and context in which it appears in this Master Prospectus and has not withdrawn such consent prior to the lodgement of a copy of this Master Prospectus for registration.

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(18) ADDITIONAL INFORMATION

(a) Official Receipt and Statement of Investment

Each time you purchase Units or conduct any other transaction for the Funds, a Confirmation Advice is sent out to you by ordinary post. A computer generated statement will also be issued to provide you with a record of each and every transaction made in your account so that you may confirm the status and accuracy of your transactions, as well as to provide you with an updated record of your investment account(s) with us.

(b) Keeping Track of the Daily Prices of Units

The Manager will publish the Funds’ Selling / Repurchase Prices of Units and the Net Asset Value per Unit daily in at least one national Bahasa Malaysia and one national English newspaper.

(c) Financial Reports

You will be informed of the Funds’ performances through audited annual reports and half-yearly unaudited reports. The reports will be sent to you within 2 months after the close of the financial year-end or interim period.

(d) Changing your account details

You are required to inform us in writing on any changes of your account details. The account details will, amongst other things, include the following;

(i) the Unit Holder’s address; (ii) signing instructions; (iii) distribution of income instruction.

(e) Unclaimed Monies

Any monies (other than unclaimed distribution) payable to Unit Holders which remain unclaimed after such period as is prescribed by the Unclaimed Moneys Act, 1965 shall be paid by the relevant Trustee to the Consolidated Trust Account in accordance with the provisions of the said Act. Unit Holders may claim the unclaimed monies in the Consolidated Trust Account from the Registrar of Unclaimed Moneys in accordance with the said Act.

(f) The Deed

The Deeds can be inspected at the office of the Manager during business hours.

(g) Payment of Zakat

The Funds do not pay zakat on capital gains and income distributed by the Funds on behalf of Muslim individuals and Muslim legal entities, who are investors of the Funds since doing so, in our view, would not satisfy completely their zakat obligations. Such investors are thus required to pay their zakat on their own.

(h) Material Contracts

There are no other material contracts (including contracts not reduced in writing), not being contracts entered in the ordinary course of business which have been entered into by the Manager within two (2) years preceding the date of this Master Prospectus.

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(19) DOCUMENTS AVAILABLE FOR INSPECTION For a period of not less than twelve (12) months, the following documents or copies thereof, where applicable, may be inspected, without charge at the registered office of the Manager and the respective Trustees: (a) the Deeds of the Funds; (b) any material contracts or documents referred to in this Master Prospectus; (c) the latest annual and interim reports for the Funds; (d) all reports, letters or other documents, valuations and statements by any expert, any part of

which is extracted or referred to in this Master Prospectus; (e) the audited financial statements of the Manager and the Funds (where applicable) for the last

three (3) financial years or from the date of incorporation/inception, if less than three (3) years, preceding the date of this Master Prospectus;

(f) writ and relevant cause papers for all current material litigation and arbitration disclosed in this Master Prospectus;

(g) latest audited financial statements of the Manager and the Funds for the current financial year (where applicable); and

(h) any consent given by experts or persons named in this Master Prospectus.

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(20) TAXATION ADVISER’S LETTER

Taxation adviser’s letter in respect of the taxation of the unit trust and the unit holders

(prepared for inclusion in this prospectus) Ernst & Young Tax Consultants Sdn Bhd 10 February 2014 Level 23A, Menara Milenium Pusat Bandar Damansara 50490 Kuala Lumpur The Board of Directors MIDF Amanah Asset Management Berhad Level 3A, Menara MIDF No. 82, Jalan Raja Chulan 50200 Kuala Lumpur Dear Sirs

Taxation of the unit trust and unit holders This letter has been prepared for inclusion in this Prospectus to be dated 1 March 2014 in connection with the offer of units in the unit trusts below (hereinafter referred to as “the Funds”):-

1) MIDF Amanah Growth Fund;

2) MIDF Amanah Strategic Fund;

3) MIDF Amanah Islamic Fund;

4) MIDF Amanah Dynamic Fund;

5) MIDF Amanah Money Market Fund; and

6) MIDF Amanah Shariah Money Market Fund.

The purpose of this letter is to provide prospective unit holders with an overview of the impact of taxation on the Funds and the unit holders.

Taxation of the Funds The taxation of the Funds is subject to the provisions of the Malaysian Income Tax Act, 1967 (“MITA”), particularly Sections 61 and 63B. 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 Shariah. 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 Shariah, will be accorded the same tax treatment as if they were interest.

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Subject to certain exemptions, the income of the Funds comprising dividends, 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.

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 Funds which are not deductible under Section 33(1) of the MITA:

• the manager's remuneration, • maintenance of the register of unit holders, • share registration expenses, • secretarial, audit and accounting fees, telephone charges, printing and stationery costs and

postage.

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 Funds are exempt from income tax: • Malaysian sourced dividends

Tax exempt dividends received from investments in companies which had previously enjoyed or are currently enjoying certain tax incentives provided under the relevant legislation.

Any dividends paid, credited or distributed to any person where the company paying such dividends is not entitled to deduct tax under Section 108 of the MITA (commonly referred to as single tier dividends).

1 In the 2014 Budget announcement, it was proposed that this income tax rate be reduced to 24% with effect from the year of assessment 2016. This proposal has yet to be legislated. 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.

• Malaysian sourced interest (profits)

(i) interest from securities or bonds issued or guaranteed by the Government of Malaysia; (ii) interest from debentures or Islamic securities, (other than convertible loan stock)

approved by 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; 4

(v) interest from Islamic securities originating from Malaysia, other than convertible loan

stock issued in any currency other than Ringgit and approved by the Securities Commission or the Labuan Offshore Financial Services Authority (LOFSA)45

(vi) interest received from bonds or securities issued by Pengurusan Danaharta Nasional

Berhad; and

(vii) interest derived from bonds (other than convertible loan stock) paid or credited by any company listed on the Malaysian Exchange of Securities Dealing and Automated Quotation Berhad (MESDAQ)5. 6

• 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.

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 Funds 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.

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 Pursuant to Section 4 of the Finance Act 2011, with effect from 11 February 2010, ‘LOFSA’ refers to Labuan Financial Services Authority (LFSA). 5 MESDAQ was replaced by FTSE Bursa Malaysia ACE with effect from 3 August 2009, therefore any interest derived from bonds (other than convertible loan stock) paid or credited by any company listed on the MESDAQ should still qualify for an exemption up to 2 August 2009. However, from 3 August 2009 and up to the date of this letter, there is no new gazette order issued to exempt interest derived from bonds paid or credited by a company listed in the new FTSE Bursa Malaysia ACE.

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Taxation of unit holders For Malaysian income tax purposes, unit holders will be taxed on their share of the distributions received from the Funds. The income of unit holders from their investment in the Funds broadly falls under the following categories: 1. taxable distributions; and 2. non-taxable and exempt distributions. In addition, unit holders 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 Funds will have to be grossed up to take into account the underlying tax paid by the Funds and the unit holder 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 unit holder. Should the tax deducted at source exceed the tax liability of the unit holder, the excess is refundable to the unit holder.

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

2. Non-taxable and exempt distributions

Tax exempt distributions made out of gains from the realisation of investments and other exempt income earned by the Funds will not be subject to Malaysian income tax in the hands of the unit holders.

Rates of tax

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

Unit holders Malaysian income tax rates

Malaysian tax resident:

• Individual and non-corporate unit holders (such as associations and societies)

• Co-operatives67

• Trust bodies

• Progressive tax rates ranging from 0% to 26%78

• Progressive tax rates ranging from 0% to 25%89

• 25%1

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• Corporate unit holders (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)9 10

(ii) Companies other than (i) above

• For every first RM500,000 of chargeable income @ 20%1011

• Chargeable income in excess of RM500,000 @ 25%10

• 25%1

Non-Malaysian tax resident (Note):

• Individual and non-corporate unit holders

• Corporate unit holders and trust bodies

• 26%1112

• 25%1

Note: Non-resident unit holders may be subject to tax in their respective countries depending on the provisions of the tax legislation in the respective countries and any existing double taxation arrangements with Malaysia. Gains from sale of units Gains arising from the realisation of investments will not be subject to income tax in the hands of unit holders unless they are insurance companies, financial institutions or traders/ dealers in securities.

6 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 exmpt from tax.

7 In the 2014 Malaysian Budget announcement, it was proposed that the top Malaysian income tax rate for resident individuals be reduced from 26% to 25%, with effect from the year of assessment 2015. This proposal has yet to be legislated. 8 In the 2014 Malaysian Budget announcement, it was proposed that the top Malaysian income tax rate for co-operatives be reduced from 25% to 24%, with effect from the year of assessment 2015. This proposal has yet to be legislated. 9 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.

10 In the 2014 Malaysian Budget announcement, it was proposed that the income tax rate be reduced to 19% on chargeable income up to RM500,000 and 24% on the remaining chargeable income, with effect from the year of assessment 2016. This proposal has yet to be legislated. 11 In the 2014 Malaysian Budget announcement, it was proposed that the income tax rate for non-resident individuals be reduced from 26% to 25%, with effect from the year of assessment 2015. This proposal has yet to be legislated.

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Unit splits and reinvestment of distributions Unit holders 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 Funds pursuant to a unit split will not be subject to income tax

in the hands of the unit holders. • Reinvestment of distributions – unit holders may choose to reinvest their income distribution in

new units by informing the Manager. In this event, the unit holder will be deemed to have received the distribution and reinvested it with the Funds.

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

We hereby confirm that, as at the date of this letter, the statements made in this report correctly reflect our understanding of the tax position under current Malaysian tax legislation 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 Funds. 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 Funds. Yours faithfully Ernst & Young Tax Consultants Sdn Bhd Julie Thong 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 prior to the delivery of a copy of this Prospectus for approval.

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(21) UNIT TRUST LOAN/FINANCING RISK DISCLOSURE STATEMENT

Investing in a unit trust fund with borrowed money/financing is more risky than investing with your own savings.

You should assess if loan/financing is suitable for you in light of your objectives, attitudes to risk and financial circumstances. You should be aware of the risks, which would include the following:

(a) The higher the margin of financing (that is, the amount of money you borrow/financed

for every Ringgit of your own money that you put in as deposit or down payment) the greater the potential for losses as well as gains.

(b) You should assess whether you have the ability to service the repayments on the

proposed loan/financing. If your loan/financing is a variable rate loan/financing, and if interest rates/profit rise, your total repayment amount will be increased.

(c) If unit prices fall beyond a certain level, you may be asked to provide additional

acceptable collateral or pay additional amounts on top of your normal instalments. If you fail to comply within the time prescribed, your units may be sold to settle your loan/financing.

(d) Returns on unit trusts are not guaranteed and may not be earned evenly over time.

This means that there may be some years where returns are high and other years where losses are experienced instead. Whether you eventually realise a gain or loss may be affected by the timing of the sale of your units. The value of units may fall just when you want your money back even though the investment may have done well in the past.

The brief statement cannot disclose all the risks and other aspects of loan/financing. You should therefore carefully study the terms and conditions before you decide to take the loan/financing. If you are in doubts in respect of any of this risk disclosure statement or the terms of the loan/financing, you should consult the institution offering the loan/financing.

ACKNOWLEDGEMENT OF RECEIPT OF RISK DISCLOSURE STATEMENT

I acknowledge that I have received a copy of this Unit Trust Loan/Financing Risk Disclosure Statement and understand its contents.

Signature : ________________________________________________ Full Name : ________________________________________________

Date : ________________________________________________

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(22) LIST OF DISTRIBUTION CHANNELS MIDF Amanah Asset Management Berhad (11804-D) REGISTERED OFFICE

21st Floor, Menara MIDF, 82 Jalan Raja Chulan, 50200 Kuala Lumpur Tel: 03 – 2173 8888

BUSINESS OFFICE

Level 3A, Menara MIDF, 82 Jalan Raja Chulan, 50200 Kuala Lumpur Tel: 03 - 2173 8488 (Customer Service Line) Fax: 03 - 2173 8555 E-mail: [email protected] Website: www.midf.com.my/cms/midfamanah

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