PMB SHARIAH ASEAN STARS EQUITY FUND

PMB SHARIAH ASEAN STARS EQUITY FUND

1 PMB Investment Berhad

RESPONSIBILITY STATEMENTS

This Prospectus has been reviewed and approved by the directors of PMB Investment Berhad and they

collectively and individually accept full responsibility for the accuracy of the information. Having made all

reasonable inquiries, 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 Prospectus false or

misleading.

2.01(a)

STATEMENTS OF DISCLAIMER

The Securities Commission Malaysia has authorised PMB Shariah ASEAN Stars Equity Fund (“the Fund”)

and a copy of this Prospectus has been registered with the Securities Commission Malaysia.

The authorisation of the Fund, and registration of this Prospectus, should not be taken to indicate that the

Securities Commission Malaysia recommends the said Fund or assumes responsibility for the correctness

of any statement made, opinion expressed or report contained in this Prospectus.

The Securities Commission Malaysia is not liable for any non-disclosure on the part of PMB Investment

Berhad responsible for the Fund and takes no responsibility for the contents in this Prospectus. The

Securities Commission Malaysia makes no representation on the accuracy or completeness of this

Prospectus, and expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole

or any part of the contents.

INVESTORS SHOULD RELY ON THEIR OWN EVALUATION TO ASSESS THE MERITS AND RISKS OF THE

INVESTMENT. IF INVESTORS ARE UNABLE TO MAKE THEIR OWN EVALUATION, THEY ARE ADVISED

TO CONSULT PROFESSIONAL ADVISERS.

2.01(b)()

Investors should note that they may seek recourse under the Capital Markets and Services Act 2007 for

breaches of securities laws including any statement in this Prospectus that is false, misleading, or from

which there is a material omission; or for any misleading or deceptive act in relation to this Prospectus or

the conduct of any other person in relation to the Fund.

2.02(a)

PMB Shariah ASEAN Stars Equity Fund has been certified as Shariah-compliant by the Shariah Adviser

appointed for the Fund.

2.02(b)



Table of Contents

1. GLOSSARY OF TERMS/ ABBREVIATIONS ................................................................................... 5

2. CORPORATE DIRECTORY ............................................................................................................ 10

3. THE FUND ........................................................................................................................................ 11

3.1 Fund Information ............................................................................................................. 11

3.2 Investment Objective ...................................................................................................... 11

3.3 Investment Policy and Strategy ................................................................................... 11

3.4 Risk Factors ....................................................................................................................... 12

(a) General risks of investing in a unit trust fund ............................................... 12

(b) Specific risks associated with the investment portfolio of the Fund ....... 13

3.5 Risk Management............................................................................................................. 14

3.6 Distribution Policy .......................................................................................................... 15

3.7 Financial Year End ........................................................................................................... 15

3.8 Performance Benchmark ............................................................................................... 16

3.9 Permitted Investment..................................................................................................... 16

3.10 Investment Restrictions and Limits ............................................................................ 16

3.11 Valuation of Assets ........................................................................................................... 18

3.12 Policy on Financing and Securities Lending ............................................................. 19

3.13 Shariah Approval Process .............................................................................................. 19

3.14 Special Purpose Acquisition Companies (SPACs) .................................................... 20

3.15 Purification Process ........................................................................................................ 21

3.16 Zakat .................................................................................................................................... 22

3.17 Classes of Units ................................................................................................................. 22

4. FEES, CHARGES AND EXPENSES ................................................................................................. 23

4.1 Charges ............................................................................................................................... 23

4.2 Fees ...................................................................................................................................... 24

4.3 Expenses incurred by the Fund .................................................................................... 24

4.4 Policy on Rounding Adjustment .................................................................................. 25

4.5 Goods and Services Tax (“GST”) ................................................................................... 25

4.6 Rebates and Soft Commission....................................................................................... 25

5. TRANSACTION INFORMATION ................................................................................................... 26

5.1 Determination of Prices ................................................................................................. 26

5.2 Sales of Units ..................................................................................................................... 27

5.3 Repurchase/ Redemption of Units .............................................................................. 32

5.4 Transfer of Units .............................................................................................................. 33

3.02



5.5 Switching of Units ............................................................................................................ 34

5.6 Dealing of Units ................................................................................................................ 35

5.7 Incorrect Pricing .............................................................................................................. 35

5.8 Unclaimed Monies ........................................................................................................... 35

6. THE MANAGER ............................................................................................................................... 36

6.1 Manager’s Profile ............................................................................................................. 36

6.2 Manager’s Roles, Duties and Responsibilities ......................................................... 36

6.3 Manager’s Delegate ......................................................................................................... 37

6.4 Material Litigation ........................................................................................................... 37

6.5 Investment Committee ................................................................................................... 37

6.6 Shariah Adviser ................................................................................................................ 38

6.7 Designated Fund Manager ............................................................................................. 39

7. THE TRUSTEE ................................................................................................................................. 40

7.1 Corporate Information ................................................................................................... 40

7.2 Experience as Trustee to Unit Trust Funds .............................................................. 40

7.3 Duties and Responsibilities of the Trustee ............................................................... 40

7.4 Material Litigation and Arbitration ............................................................................ 40

7.5 Trustee’s Delegate ........................................................................................................... 41

8. SALIENT TERMS OF DEED ........................................................................................................... 42

8.1 Rights and Liabilities of Unit Holders ........................................................................ 42

8.2 Maximum Fees and Charges .......................................................................................... 42

8.3 Permitted Expenses ........................................................................................................ 43

8.4 Removal, Replacement, and Retirement ................................................................... 44

8.5 Termination of the Fund ................................................................................................ 46

8.6 Unit Holders’ Meeting ..................................................................................................... 47

9. APPROVALS AND CONDITIONS .................................................................................................. 50

10. RELATED PARTY TRANSACTIONS AND CONFLICT OF INTEREST ..................................... 51

11. TAXATION OF THE FUND ............................................................................................................ 52

12. ADDITIONAL INFORMATION ...................................................................................................... 59

12.1 How You Can Keep Track of Your Investment .......................................................... 59

12.2 Avenue of Advice to Prospective Investors ............................................................... 59

12.3 Deed of the Fund ............................................................................................................... 59

12.4 Complaints ......................................................................................................................... 59

12.5 Anti-Money Laundering and Anti-Terrorism Financing (“AML/CFT”)

Policies ................................................................................................................................ 60

12.6 Privacy Notice under the Personal Data Protection Act (“PDPA”) 2010........... 60



12.7 Foreign Account Tax Compliance Act (“FATCA”) ..................................................... 60

12.8 List of Distribution Channel .......................................................................................... 61

13. DOCUMENTS AVAILABLE FOR INSPECTION ........................................................................... 62

APPENDICES ............................................................................................................................................... 63



1. GLOSSARY OF TERMS/ ABBREVIATIONS 3.03

In this Prospectus, except when the context otherwise requires, the following words and expressions shall bear the following meanings:

“ANGKASA” means Angkatan Koperasi Kebangsaan Malaysia Berhad;

“accounting records” includes invoices, receipts, orders for payment of money, bills of exchange,

cheques, promissory notes, vouchers and other documents of prime entry

and also includes such working papers and other documents as are necessary

to explain the methods and calculations by which financial statements are

made up;

“application” means a request to purchase units by an investor or a Unit Holder;

“ASEAN” means the Association of Southeast Asian Nations;

“Base Currency” means the base currency of the Fund, i.e. Malaysia Ringgit (MYR);

“BIMBSEC” means BIMB Securities Sdn Bhd;

“BNM” means Bank Negara Malaysia;

“Bursa Malaysia” means Malaysia’s stock exchange managed by Bursa Malaysia Berhad;

“business day” means a day on which the Bursa Malaysia is open for dealings;

“buying price” or

“repurchase price” of a unit

means the price equivalent to the NAV per unit of the Fund as at the next valuation point after the request for repurchase is received by the Manager;

“CIS” ‘Collective Investment Scheme’ means any arrangement where –

a) it is made for the purpose, or having the effect, of providing facilities for

persons to participate in or receive profits or income arising from the

acquisition, holding, management or disposal of securities, derivatives

or any other property (hereinafter referred to as fund’s assets) or sums

paid out of such profits or income;

b) the persons who participate in the arrangements do not have day-to-day

control over the management of the fund’s assets;

c) the contributions from the persons who participate in the arrangements

and the profits or income from which payments are made, are pooled;

and

d) the fund’s assets are managed by an entity who is responsible for the

management of the fund’s assets and is approved, authorised, or licensed

by a securities regulator to conduct fund management activities.

“CITB” means CIMB Islamic Trustee Berhad;

“Class(es)” means any class of units in the Fund representing similar interests in the

assets of the Fund and “Class” means any one class of units;

“CMSA” means the Capital Markets and Services Act 2007;



“cooling-off period” means a unit holder may exercise their cooling off right i.e to withdraw their

investment within 6 business days (beginning from the day the completed

application is received and accepted by the Manager);

“cooling-off right” means the right of a unit holder to obtain a refund of the unit holder’s

investment in the fund, if the unit holder so requests within the cooling-off

period;

“Deed” means the principal and any supplemental deeds of the Fund made between

the Manager and the Trustee;

“designated fund

manager”

means a Capital Markets Services Representative Licence (CMSRL) holder

who is responsible for the fund management of the Fund;

“Distribution Date” means the date on which the cash distribution of the Fund, or unit

distribution in lieu of the cash, is made or scheduled to be made;

“eligible market” means a market that-

a) is regulated by a regulatory authority;

b) operates regularly;

c) is open to the public; and

d) has adequate liquidity for the purposes of the fund in question.

“equity–related securities” means securities where the price movement is dependent on the

performance of the underlying equities that the securities are related to;

“FIMM” means Federation of Investment Managers Malaysia;

“financial institution” means, if the institution is in Malaysia licensed bank; licensed investment

bank; or licensed Islamic bank; or if the institution is outside Malaysia, any

institution that is licensed, registered, approved, or authorised by the

relevant banking regulator to provide financial services;

“forward pricing” means the determination of the price of a unit that is the NAV per unit

calculated at the next valuation point after an application to purchase or

repurchase units is received by the Manager;

“Fund” means PMB Shariah ASEAN Stars Equity Fund;

“GST” means goods and services tax, which includes any tax payable on the supply

of goods, services, or other things in accordance with the provisions of the

Goods and Services Tax Act 2014;

“Initial Offer Period” means in relation to a class of Units, the period described as such for that

class of Units in the Prevailing Prospectus or supplementary prospectus as

the case may be. During this period, Units are created, cancelled, sold or

redeemed at the initial offer price;

“Investor” or “Unit

Holder”

means the person registered for the time being as a holder of units in the

Fund in accordance with the provisions of the Deed;



“Islamic money market

instruments“

means financial instruments with liquidity and near term maturity, issued

under the Shariah principles, that are tradeable, such as commercial papers,

banker’s acceptance and negotiable certificate of deposit;

“Islamic deposit

placement”

means money placed with financial institutions for an agreed period under

the Shariah principles;

“IUTA” means ‘Institutional Unit Trust Adviser’, which is an institution, a

corporation or an organization registered with the FIMM in accordance with

FIMM’s Guidelines for Registration of Institutional Unit Trust Adviser for the

marketing and distribution of unit trusts;

“long term” means a period of more than 5 years;

"LPD" means the latest practicable date, that is 29th day of December 2017;

“Manager” or “We” or “us” means PMB Investment Berhad;

“MARA” means Majlis Amanah Rakyat;

“medium term” means a period of between 3 and 5 years;

“MYR” means Malaysia Ringgit;

“MYR Class”’ means Class denominated in MYR;

“NAV” means ‘Net Asset Value’ refers to the value of all the Fund’s assets less the

value of all the Fund’s liabilities at the valuation point (For the purpose of

computing the annual management fee and annual trustee fee, the NAV of the

Fund is inclusive of the management fee and trustee fee for the relevant day);

“NAV of the relevant class

of Units”

means the value of the Fund’s assets attributable to such class of Units less

the value of the Fund’s liabilities attributable to such class of Units, at the

valuation point;

“NAV per unit” means the NAV of the Fund attributable to a class of Units divided by the

number of Units in circulation for that class of Units, at the valuation point;

“near term” means a period of less than 1 year;

“Prospectus” means this prospectus, which is the prospectus for the Fund and includes any

supplementary or replacement prospectus, as the case maybe;

“PMB” means Pelaburan MARA Berhad;

“PMB Investment” means PMB Investment Berhad;

“RAM” means RAM Rating Services Berhad;

“redemption” or

“repurchase”

means the repurchase by the Manager of all or part of the units owned by the

Unit Holders;

“repurchase price” or

“buying price” of a unit

means the price equivalent to the NAV per unit of the Fund as at the next

valuation point after the request for repurchase is received by the Manager;

“SAC” means Shariah Advisory Council;



“SC” means Securities Commission Malaysia, established under the Securities

Commission Malaysia Act, 1993;

“securities” means debentures, stocks or bonds issued or proposed to be issued by any

government; shares in or debentures of, a body corporate or an

unincorporated body; or units in a unit trust scheme or prescribed

investments, and includes any right, option or interest in respect thereof;

“selling price of a unit” means the price equivalent to the NAV per unit of a unit trust fund as at the

next valuation point after the application for units is received by the

Manager;

“Shariah” means Islamic laws, originating from the Qur`an (the holy book of Islam), and

its practices and explanations rendered by the Prophet Muhammad (peace

be upon him) and ijtihad of ulama’ (personal effort by qualified Shariah

scholars to determine the true ruling of divine laws on matters whose

revelations are not explicit);

“Shariah Adviser” means the Shariah adviser appointed for the Fund;

“special resolution” means a resolution passed by a majority of not less than ¾ of unit holders

voting at a meeting of unit holders. For the purpose of terminating a fund, a

special resolution is passed by a majority in number representing at least ¾

of the value of the units held by unit holders voting at the meeting;

“stock exchange” has the same meaning assigned to it under the CMSA, and includes stock

exchanges in foreign jurisdictions;

“structured product” means any investment product that falls within the definition of “securities”

and which derives its value by reference to the price or value of an underlying

reference;

“sukuk” means certificates of equal value which evidence undivided ownership or

investment in the assets using Shariah principles and concepts;

“Trustee” means the trustee appointed for the Fund;

“unit” means unit of a unit trust fund that represents a unit holder’s interest;

“unit price” means the price at which a unit holder buys or sells units at NAV per unit;

“Unit Holder” or

“Investor”

means the person registered for the time being as a holder of units in the

Fund in accordance with the provisions of the Deed;

“Unit Trust Consultant”

or “UTC”

means an individual unit trust adviser registered with FIMM;

“units in circulation” means units created and fully paid for and which have not been cancelled;

“US persons” Refers to:-

a) a citizen of United States of America (US);

b) an individual lawfully admitted for permanent residence of the US;



c) an unincorporated association with a substantial number of members

who are citizens of the US or are individuals lawfully admitted for

permanent residence of the US; or

d) a corporation incorporated in the US.

“USD” means US Dollar;

“USD Class” means Class denominated in USD; and

“UTF Guidelines” means Guidelines on Unit Trust Funds issued by the SC, as amended from

time to time;



3. THE FUND 4.01

3.1 Fund Information

Class of Units

MYR Class USD Class

Name PMB Shariah ASEAN Stars Equity Fund

Category/ Type Equity (Shariah)/ Growth

Initial Offer Price MYR0.5000 USD0.5000

Initial Offer Period Twenty one (21) days from the date of this Prospectus

Base Currency MYR

Distribution Policy The distribution of income, if any, is incidental

Financial Year End 31 October

Investment Horizon Three (3) years or more

Investor’s Profile • Seeking Shariah-compliant investments with growth potential;

• Having medium to long term investment horizon; and

• Being medium to high risk tolerant

4.02(a)

4.02(c)

4.02(d)

4.02(b)

3.2 Investment Objective 4.02(e)

The Fund aims to achieve capital growth over the medium term to long term period by investing in a

diversified portfolio of Shariah-compliant securities.

Note:

Any material change to the Fund’s investment objective requires Unit Holders’ approval.

All distributions, if any, will be made in the form of additional units.

3.3 Investment Policy and Strategy 4.02(f)

The Fund will invest in a diversified portfolio of Shariah-compliant equities listed on any recognized stock

exchanges in ASEAN member countries where the respective regulatory authority is an ordinary or associate

member of the International Organization of Securities Commissions (IOSCO).

It will invest between 70% to 99.5% of the Fund’s NAV in equities of any of the 300 largest Shariah-compliant

companies in terms of market capitalization (at the point of purchase) listed on recognized stock exchange

in any of the ASEAN member countries.

4.02(f)

(), (ii) &

(iii)



The designated fund manager will conduct a relative performance analysis of these 300 largest companies

based on the stock price movement, growth potential, profitability and dividend yield. The relative

performance analysis is to measure the performance strength among the stocks and aimed at selecting

stocks for inclusion in the investment portfolio.

The designated fund manager will conduct the relative performance analysis at least on a monthly basis, or

as and when significant changes in political or economic conditions in the countries, market indicators of

relevant stock exchanges, or fundamentals of specific stocks that the Fund has held its investment.

The designated fund manager will actively monitor the investment portfolio of the Fund and will trade the

stocks depending on the outcome of the relative performance analysis.

The Fund will maintain equity exposure within a range of 70% to 99.5% of its NAV. The remaining balance

of the Fund’s NAV shall be invested in Islamic money market instruments, Islamic deposit placement, sukuk,

Shariah compliant collective investment schemes and/or other Shariah compliant investment instruments.

The Fund may take temporary defensive positions that may be inconsistent with the Fund’s principal

strategy corresponding to adverse economic and/or political conditions or potential sharp downturn in the

equities market that may be likely leading to substantial capital loss. In such circumstances, the Manager

may reallocate up to 100% of the Fund’s equity investments into other permitted investments, including

Islamic money market instruments and/or Islamic deposit placements.

3.4 Risk Factors 4.02(h)

(a) General risks of investing in a unit trust fund 4.02(h)

() (i) Market Risk

Market risk refers to the possibility that an investment will lose value because of a general

decline in financial markets, due to economic, political and/or other factors, which will

result in a decline in the Fund’s NAV.

(ii) Fund Management Risk

This risk refers to the day-to-day management of the fund by the fund manager which will

impact the performance of the fund. For example, investment decisions undertaken by the

fund manager, as a result of an incorrect view of the market or any non-compliance with

internal policies, investment mandate, the deed, relevant law or guidelines due to factors

such as human error or weaknesses in operational process and systems, may adversely

affect the performance of the fund.

(iii) Inflation Risk

This is the risk that investors’ investment in the unit trust fund may not grow or generate

income at a rate that keeps pace with inflation. This would reduce investors’ purchasing

power even though the value of the investment in monetary terms has increased.

Shariah-

compliant

equities in

ASEAN stock

exchanges

300 largest

Shariah-

compliant

companies by

market

capitalization

Relative

performance

analysis

Stock selection



(iv) Loan/Financing Risk

This risk occurs when investors take a loan/financing to finance their investment. The

inherent risk of investing with borrowed/financed money includes investors being unable

to service the loan repayments/financing payments. In the event units are used as

collateral, an investor may be required to top-up the investors’ existing instalment if the

prices of units fall below a certain level due to market conditions. Failing which, the units

may be sold at a lower net asset value per unit as compared to the net asset value per unit

at the point of purchase towards settling the loan/financing.

(b) Specific risks associated with the investment portfolio of the Fund 4.02(h)(ii)

4.02(

(i) Equity Market Risk

The performance of the Fund is subject to the volatility of the stock market which is

influenced by the changes in the economic and political climate, interest rate, international

stock market performance and regulatory policies. The movement of the value in the

underlying investment portfolio will affect the NAV of the Fund. Any downward movement

of the value will negatively impact the NAV of the Fund.

(ii) Stock Specific Risk

Prices of a particular stock may fluctuate in response to the circumstances affecting

individual companies such as adverse financial performance, news of a possible merger or

loss of key personnel of a company. Any adverse price movements of such stock will

adversely affect the Fund’s NAV.

(iii) Shariah Status Reclassification Risk

This risk refers to the risk that the currently held Shariah-compliant equities in the Fund

may be reclassified as Shariah non-compliant in the periodic review of the equities by the

SAC of the SC, the Shariah Adviser or the Shariah boards of the relevant Islamic indices. If

this occurs, we will take the necessary steps to dispose such equities. There may be

opportunity loss to the Fund due to the Fund not being allowed to retain the excess capital

gains derived from the disposal of the Shariah non-compliant equities.

The designated fund manager will dispose of the equities within one month or such other

period as maybe determined by the SAC of the SC if the prices are equal or above the cost

of investment. Where the prices are below the cost of investment, the designated fund

manager may hold on to the equities until the prices are equal to the cost of investment. If

the designated fund manager decides to dispose of the equities below the cost of

investment, the Fund will incur a realized loss that negatively impact the Fund’s NAV.

(iv) Warrant Risk

The Fund may hold Shariah-compliant warrants as a result of corporate actions of Shariah-

compliant listed companies in which the Fund is holding their stocks. The value of warrants

is influenced by the current market price of the underlying stocks, the exercise price of the

warrant, the time to expiration of the warrant and the estimate of the future volatility of the

underlying stock price over the life of the warrant. The warrant’s price decreases as the

warrant approaches its due date especially in the event that the warrants are held and not

exercised.



(v) Liquidity Risk

Liquidity risk refers to the ease of liquidating an asset depending on the asset’s volume

traded in the market. If the Fund holds assets that are illiquid, or are difficult to dispose of,

the value of the Fund will be negatively affected when it has to sell such assets at

unfavorable prices.

(vi) Country Risk

Investments of the Fund in any countries may be affected by changes in the economic and

political climate, restriction on currency repatriation or other developments in the law or

regulations of the countries in which the Fund invests in. For example, the deteriorating

economic condition of such countries may adversely affect the value of the investments

undertaken by the Fund in those affected countries. This in turn may cause the net asset

value of the Fund or prices of units to fall.

(vii) Currency Risk

As the investments of the Fund may be denominated in currencies other than the base

currency, any fluctuation in the exchange rate between the base currency and the

currencies in which the investments are denominated may have an impact on the value of

these investments. Investors should be aware that if the currencies in which the

investments are denominated depreciate against the base currency, this will have an

adverse effect on the NAV of the Fund in the base currency and vice versa. Investors should

note that any gains or losses arising from the fluctuation in the exchange rate may further

increase or decrease the returns of the investment.

(a) Currency risk at the Fund’s portfolio level

The impact of the exchange rate movement between the base currency of the fund

and the currency of the underlying investments may result in a depreciation of the

value of the investments as expressed in the base currency of the fund; and

(b) Currency risk at the class level

The impact of the exchange rate movement between the base currency of the fund

and the currency of the USD class may result in a depreciation of the investor’s

holdings as expressed in the base currency of the fund. The risk occurs when

converting the NAV per unit in the base currency to the NAV per unit in the USD

class denomination at a valuation point. Investors in MYR class are not exposed to

the risk as no conversion of the NAV per unit is required.

Please take note that events affecting the investments of the Fund cannot always be forecasted. As such, it is

not possible to protect the investments from all risks. Please read and understand the whole Prospectus to

evaluate the risks associated to the Fund. You may consult your professional advisers on the risks.

3.5 Risk Management 4.02(k)

Our Board of Directors (“BOD”) is ultimately responsible for our overall risk management. To ensure the

effectiveness of the risk management, the BOD has established a risk management framework containing the

risk management structure, reporting, policies and procedures. The BOD has assigned the Risk Management

Department (“RMD”), which directly reports to the BOD, to implement the risk management processes with



the other respective divisions or departments. The RMD will facilitate the risk identification, assessment and

controls with these departments. Apart from the BOD, the RMD will communicate with the Investment

Committee, the management committee and the investment operating committee on the relevant risk

management issues during their every meeting.

The Compliance Department, which also directly reports to the BOD, undertakes the responsibilities to

review and assess the compliance status of the management and operations of the Fund to be in compliance

with the regulatory requirements, the deed and prospectus of the Fund, and the internal controls. The

Compliance Department communicates with the relevant divisions or departments as and when any

compliance issues arise. The compliance report will be tabled to the BOD and the Investment Committee

during their every meeting. In addition, we use the information technology system in our investment

transaction processes to monitor the securities transactions are compliant with the Fund’s investment

restrictions and limits. We also engage a global Shariah screening service provider to facilitate Shariah

screening process for the Fund’s investments in foreign markets.

Our investment analysts closely monitor the economic indicators, as well as political and regulatory

development of ASEAN countries, and market indicators in stock exchanges in those countries through news

feeds obtained from the subscribed investment data services, research firms or in-house research. The

designated fund manager regularly reviews the performance of companies that the Fund has invested in.

Meetings among the designated fund managers and investment analysts are regularly held to discuss on the

prevailing investment issues pertaining to economic and market situations, and appropriate action plans are

developed to address the issues. The designated fund manager submits reports on the investment portfolio

of the Fund to the Investment Committee during its every meeting.

3.6 Distribution Policy 4.02(n)

The distribution of income, if any, is incidental.

Where the Fund distributes its income, such distribution will be made in the form of additional units and in

the currencies in which those classes of units are denominated. The distribution will be credited to your

investment account. The value of the reinvestment of distribution will be equivalent to the NAV per unit of

each Class of unit on the first business day following the Distribution Date. No charge will be imposed on the

distribution reinvestment. A statement of the distribution of units will be delivered to you within two (2)

month after the Distribution Date or such any other period as permitted by the UTF Guidelines.

Unit prices and distributions payable, if any, may go down as well as up.

6.11 &

6.12(a),

(b) &

(c)

6.13

3.7 Financial Year End

The Fund’s financial year end is on every 31 October and its interim period ends on every 30 April.

The annual and interim reports with information on the performance and investments of the Fund are issued

to you within two (2) months from the closing of its respective interim and financial year periods, as long as

you remain as a Unit Holder of the Fund on the respective dates.

The Fund’s annual report is available upon request.

14.04

14.05



3.8 Performance Benchmark 4.02(o)

The Fund’s performance benchmark is Dow Jones Islamic Market ASEAN Index, an index universe

comprises the constituents of the Dow Jones Indonesia Index, Dow Jones Malaysia Index, Dow Jones

Philippines Index, Dow Jones Singapore Index, Dow Jones Thailand Index and Dow Jones Vietnam Index, each

of which covers approximately 95% of the float-adjusted market capitalization of the underlying market.

You may obtain the information pertaining to the index from www.djindexes.com/islamicmarket.

Note:

The benchmark is used as a yardstick to assess the performance of the Fund only. The risk profile of the Fund is

not similar to the risk profile of the performance benchmark.

3.9 Permitted Investment 4.02(p)

The Fund may invest the following assets, subject to the applicable laws, the UTF Guidelines, the Deed, and

the Fund’s investment objective:

(a) Unlisted Shariah-compliant securities;

(b) Shariah-compliant securities traded in or under the rules of an eligible market;

(c) Islamic money market instruments traded in or under the rules of an eligible market;

(d) Islamic deposit placements with financial institutions;

(e) Sukuk traded in or under the rules of an eligible market;

(f) Shariah-compliant warrants;

(g) Shariah-compliant collective investment schemes;

(h) Any other Shariah-compliant investment instruments as may be approved by the SAC of the SC, the

SAC of BNM and/or the Shariah Adviser.

3.10 Investment Restrictions and Limits 4.02(p)

(a) The value of the Fund’s Shariah-compliant investments in unlisted securities must not exceed 10%

of the Fund’s NAV. However, the limit does not apply if the unlisted securities are –

• equities not listed and quoted on a stock exchange but have been approved by the relevant

regulatory authority for such listing and quotation, and are offered directly to the Fund by the

issuer;

• sukuk traded on an organised over-the-counter (“OTC”) market; and

(b) The value of the Fund’s Shariah-compliant investments in ordinary shares issued by any single

issuer must not exceed 10% of the Fund’s NAV.

(c) The value of the Fund’s Shariah-compliant investments in transferable securities and money market

instruments issued by any single issuer must not exceed 15% of the Fund’s NAV.

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

20% of the Fund’s NAV.



(e) The Fund’s Shariah-compliant investments in transferable securities (other than sukuk) must not

exceed 10% of the securities issued by any single issuer.

(f) The aggregate value of the Fund’s investments in Shariah-compliant transferable securities, Islamic

money market instruments and Islamic deposits products issued by or placed with, as the case may

be, any single issuer/institution must not exceed 25% of the fund’s NAV.

(g) The Fund’s Shariah-compliant investments in sukuk must not exceed 20% of the sukuk issued by

any single issuer.

(h) The Fund’s investments in Islamic money market instruments must not exceed 10% of the

instruments issued by any single issuer.

(i) The value of the Fund’s investments in units/shares of any Shariah-compliant collective investment

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

(j) The value of the Fund's investments in transferable securities and money market instruments

issued by any group of companies must not exceed 20% of the Fund's NAV.

(k) The Fund’s investments in Shariah-compliant collective investment schemes must not exceed 25%

of the units/shares in any one collective investment scheme.

(l) The Fund’s investment may consist of Shariah-compliant warrants, provided that the warrants carry

the right in respect of a security traded in or under the rules of an eligible market.

(m) For the Fund’s Shariah-compliant investments* in a foreign market, a foreign market is an eligible

market where it has satisfactory requirements relating to–

• the regulation of the foreign market;

• the general carrying on of business in the market with due regard to the interests of the public;

• adequacy of market information;

• corporate governance;

• disciplining of participants for conduct inconsistent with just and equitable principles in the

transaction of business, or for a contravention of, or a failure to comply with the rules of the

market; and

• arrangements for the unimpeded transmission of income and capital from the foreign market.

*Limited to markets where the regulatory authority is an ordinary or associate member of the

International Organization of Securities Commissions (IOSCO).

Note:

(a) The above limits and restrictions do not apply to Shariah-compliant securities or instruments issued

or guaranteed by the Malaysian government or Bank Negara Malaysia.

(b) The investment limits and restrictions as set out above will be complied with at all times based on

the most up-to-date value of the Fund’s assets.

(c) In determining compliance with the limits or restrictions, any accrued entitlement on the Shariah-

compliant securities or instruments held by the Fund may be excluded. The entitlement should not

be exercised if the exercise results in a breach of any limit or restriction. The right of convertibility

may be exercised if it results in a breach of any limit or restriction, provided there are justifiable

reasons and prior approval of the Trustee has been obtained. Nonetheless, the Manager should,



within a time frame of not more than one month from the date of the breach, take all necessary steps

and actions to rectify the breach.

(d) A 5% allowance in excess of any limit or restriction imposed under the UTF Guidelines is permitted

where the limit or restriction is breached through an appreciation or depreciation of the Fund’s

NAV, whether as a result of an appreciation or depreciation in value of the Fund’s assets, or as a

result of repurchase of units or payment made out of the Fund.

The Manager will not make any further acquisition to which the relevant limit is breached, and the

Manager will, within reasonable period of not more than three months from the date of the breach,

take all necessary steps and actions to rectify the breach.

3.11 Valuation of Assets

(a) Valuation Basis

The Manager will value the assets of the Funds in accordance with the applicable laws and the UTF

Guidelines. The basis of the valuation is as below –

(i) Shariah-compliant securities listed on any exchange

Market price.

However, if a valuation based on the market price does not represent the fair value of the

securities, for example during abnormal market conditions; or no market price is available,

including in the event of a suspension in the quotation of the securities for a period

exceeding 14 days, or such shorter period as agreed by the trustee, then the securities

should be valued at fair value, as determined in good faith by the Manager, based on the

methods or bases approved by the Trustee after appropriate technical consultation.

(ii) Unlisted Shariah-compliant securities

Fair value as determined in good faith by the Manager, based on the methods or bases

approved by the Trustee after appropriate technical consultation.

(iii) Islamic money market instruments

Market yields based on the remaining days to maturity.

(iv) Islamic deposit placements

Principal value and and the profit accrued thereon for the relevant period.

(v) Unlisted Shariah-compliant collective investment schemes

Last published repurchase price.

(vi) Other Shariah-compliant investment instruments

Fair value as determined in good faith by the management company or fund manager, on

methods or bases which have been verified by the auditor of the fund and approved by the

trustee.

(b) Valuation Point

The assets of the Fund will be valued at the close of Bursa Malaysia on every business day (“trading

day” or “T” day). However, if the Fund holds any foreign investments, the valuation of assets of the

Fund will be conducted after the close of a business day but not later than 5.00 p.m. of the following

business day (T+1) due to the different time zones of foreign markets.

6.01

6.02



For investment in the foreign assets, the value of the assets are translated on a daily basis to the

Base Currency using the bid foreign exchange rate quoted by either Reuters or Bloomberg, at United

Kingdom time 4.00 p.m. the same day. If the foreign markets the Fund is investing in are closed for

business, the Manager will value the investment based on the latest available price as at the day the

relevant foreign market was last open for business.

3.12 Policy on Financing and Securities Lending

The Fund is prohibited from financing other assets (including financing of securities within the meaning of

the Securities Borrowing and Lending (“SBL”) Guidelines) in connection with its activities. However, the

Fund may seek Islamic financing for the purpose of meeting repurchase requests for units and for short-term

bridging requirements. For this purpose, the Manager will ensure that–

(a) the Fund’s financing is only on a temporary basis and that financing are not persistent;

(b) the financing period should not exceed one month;

(c) the aggregate financing of the Fund should not exceed 10% of the Fund’s NAV at the time the

financing is incurred; and

(d) the Fund only seeks Islamic financing from financial institutions.

Except to the extent permitted by the SBL Guidelines, none of the cash or assets of the Fund may be lent.

Further, the Fund may not assume, guarantee, endorse or otherwise become directly or contingently liable

for or in connection with any obligation or indebtedness of any person.

3.13 Shariah Approval Process 4.02(r)()

The investment portfolio of the Fund must invest only in Shariah-compliant securities/instruments. As a

general rule, for investment in equities in Malaysia, we use the approved list of Shariah-compliant securities

issued by the SAC of the SC, in May and November every year. However, in cases where the status of securities

has not been determined by the SAC of the SC due to reasons such as initial public offer, the interim status of

the securities will be determined by our Shariah Adviser in accordance with the SAC of the SC screening

methodology until such time when the SAC of the SC issues its ruling on the securities.

The SAC of the SC’s screening methodology is as below –

Basis Description Benchmark

Business Activity

• Conventional banking;

• Conventional insurance

• Gambling;

• Liquor and liquor-related activities;

• Pork and pork-related activities;

• Non-halal food and beverages;

• Shariah non-compliant entertainment;

• Tobacco and tobacco-related activities;

• Interest income from conventional

accounts and instruments (including

interest income awarded arising from a

court judgement or arbitrator);

The contribution of Shariah non-

compliant businesses/activities

to the Group revenue or Group

profit before taxation of the

company must be less than five

percent (5%).



• Dividends from Shariah non-compliant

investments; and

• Other activities deemed non-compliant

according to Shariah.

• Share trading;

• Conventional 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 Group revenue or Group

profit before taxation of the

company must be less than

twenty percent (20%).

Financial Ratio

(i) Cash over total assets

Cash only includes cash placed in

conventional accounts and instruments,

whereas cash placed in Islamic accounts

and instruments is excluded from the

calculation.

(ii) Debt over total assets

Debt only includes interest-bearing debt

whereas Islamic financing or sukuk is

excluded from the calculation.

Each ratio, which is intended to

measure riba and riba-based

elements within a company’s

statements of financial position,

must be less than thirty three

percent (33%).

In addition to the above, the qualitative aspect which involves public perception or image of the company’s

activities from the perspective of Islamic teaching will also be taken into account.

For investments in foreign equities, we refer to securities in the list of the Dow Jones Islamic Market ASEAN

Index (“DJIASN”). In developing the list, the securities are screened according to the Shariah screening

methodology adopted by the Shariah Supervisory Board of Dow Jones Islamic Market Index.

In the event that the Fund intends to invest in foreign securities not covered by DJIASN, we will submit to

the Shariah Adviser the latest information pertaining to business activities, complete financial statements

and other related information on the relevant company to enable the Shariah Adviser to carry out securities

screening in accordance with the Shariah screening methodology by the SAC of the SC. The decision of the

Shariah Adviser is final subject to accuracy of information made available by the Fund.

The investment portfolio of the Fund will comprise securities or instruments that have been classified as

Shariah compliant by the SAC of the SC. For securities or instruments that are not classified as Shariah

compliant by the SAC of the SC, the status of the securities or instruments will be determined in accordance

with the ruling issued by the Shariah Adviser of the Fund.

4.02(r)(ii)

3.14 Special Purpose Acquisition Companies (SPACs) 4.02(r)()

In classifying securities of SPACs, the SAC of the SC considers the following criteria:

(a) The proposed business activity should be Shariah-compliant;



(b) The entire proceeds raised from the initial public offering should be placed in Islamic accounts;

and

(c) In the event that the proceeds are invested, the entire investment should be Shariah-compliant.

Shariah-compliant securities include ordinary shares and warrants (issued by the companies themselves).

This means that warrants are classified as Shariah-compliant securities provided the underlying shares are

also Shariah-compliant. On the other hand, loan stocks and bonds are Shariah non-compliant securities

unless they are structured based on the SAC of the SC’s approved Shariah rulings, concepts and principles.

3.15 Purification Process 4.02(r)()

(a) “Shariah-compliant securities” which are subsequently re-classified as “Shariah non-

compliant”

If any securities held by the Fund being reclassified from Shariah-compliant to Shariah non-

compliant by the SAC of the SC, the Fund will liquidate the securities if the market price of the

securities held exceeds or is equal to the investment cost. The Fund can keep any dividends received

up to the date of the announcement and capital gains arising from the disposal of Shariah non-

compliant securities on the date of the announcement. However, the Fund will channel any

dividends received and excess capital gain from the disposal of Shariah non-compliant securities

after the date of the announcement to baitulmal and/or charitable bodies.

On the other hand, the Fund may hold its investment in the Shariah non-compliant securities if the

market price of the said securities is below the investment cost. The Fund can keep the dividends

received during the holding period until such time when the total amount of dividends received and

the market value of the Shariah non-compliant securities held equal the investment cost. At this

stage, the Fund will dispose of the holding.

In addition, during the holding period, the Fund may subscribe to:

• any issue of new securities by a company whose Shariah non-compliant securities are held

by the Fund, for example rights issues, bonus issues, special issues and warrants (excluding

securities whose nature is Shariah non-compliant e.g. loan stocks); and

• Shariah-compliant securities of other companies offered by the company whose Shariah

non-compliant securities are held by the Fund, on condition that the Fund expedites the

disposal of the Shariah non-compliant securities.

(b) Shariah non-compliant securities

If the Fund inadvertently invests in Shariah non-compliant securities, the Fund will dispose of the

securities within one (1) month after knowing the status of the securities. Any gain made in the form

of capital gain or dividend received before or after the disposal of the securities has to be channeled

to baitulmal and/or approved charitable bodies. The Fund has a right to retain only the investment

cost, including brokerage cost or other related transaction cost.

Note:

With regard to the issue of delisting of Shariah-compliant securities from DJIASN and Shariah non-compliant

foreign securities, the Fund is to abide by the purification processes as laid down by the SAC of the SC above.



3.16 Zakat

The Fund does not allocate payment for zakat on capital gains and income distributions, on behalf of Muslim

individuals and Muslim legal entities that invest in the Fund. Investor may consult the relevant zakat

authority on the amount of zakat payable, and should make their own arrangements in respect of the

payments of zakat.

3.17 Classes of Units

The Fund is a multi-class structure where the Deed allows for the establishment of more than one (1) Class

with similar interests in the assets of the Fund. The Fund is permitted to establish new Class(es) from time

to time without the prior consent from the Unit holders. However, Unit Holders will be notified on the

issuance of any new classes of Units through letters and a supplemental or replacement prospectus and/or

via our website at www.pmbinvestment.com.my.

While each Class of units varies in term of the currency denomination, Unit Holders of each Class possess the

same rights and obligations. Although the Fund has multiple Classes, the assets of the Fund are pooled

together for investment purpose.



4. FEES, CHARGES AND EXPENSES 5.01

4.1 Charges

Sales charge and redemption charge (if any) are computed based on the NAV per unit of the Fund that has not been rounded up.

The following charges that you directly incur when purchasing or redeeming units of the Fund –

5.02 (a)

(b) &

(c)

(a) Sales Charge

Distribution Channel

Maximum Rate* of the Initial Offer Price per unit during

the Initial Offer Period, and thereafter the NAV per unit,

for each Class of units

Institutional Unit Trust Agent

5.00% Unit Trust Consultant

The Manager

* You may negotiate for a lower rate of sales charge which we may or may not agree to at our absolute

discretion.

The computation of the sales charge is illustrated below in respect of MYR Class –

Assuming the initial offer price is MYR0.5000 unit

= Initial offer price per unit X sales charge

= 0.5000 X 5.00%

= MYR0.025 per unit

(b) Repurchase Charge

No repurchase charge imposed on any repurchase of any Class of units.

(c) Transfer Charge

MYR10.00 will be imposed on a transfer of any Class of units.

5.05

(d) Switching Charge

1st switching Nil

2nd switching and onwards MYR 25 per switching of any Class of units

Only switching for the same currency denomination of the funds managed by the Manager is

permitted. Cross currency switching is not allowed.

The above charges are subject to the GST at the prevailing rate.

5.05



4.2 Fees

The following fees that you indirectly incur when investing in the Fund –

Annual Management Fee 1.80% of the Fund’s NAV

Annual Trustee Fee 0.04% of the Fund’s NAV

(i) The annual management fee and annual trustee fee are calculated based on the Fund’s NAV (before

deducting the management fee and the trustee fee) using the Base Currency. Both fees are accrued

daily and payable monthly to the Manager and the Trustee respectively.

For illustration purposes only, assuming the NAV of the Fund (before deducting the management fee

and trustee fee) is MYR50 million. Therefore, -

Annual Management Fee Annual Trustee Fee

= (MYR50,000,000 X 1.80%)/365 days

= MYR2,465.75

= (MYR50,000,000 X 0.04%)/365 days

= MYR54.79

(ii) In addition to the trustee fee, the Trustee may be reimbursed by the Fund for any expenses properly

incurred by it in the performance of its duties subject to the Deed.

(iii) The above fees are subject to the GST at the prevailing rate.

5.04

4.3 Expenses incurred by the Fund

The expenses that the Fund may incur shall include but are not limited to the following–

(a) Commissions/fees paid to brokers/dealers in effecting dealings in the investments of the Fund

shown on the contract notes or confirmation notes;

(b) Charges/fees paid to sub-custodian (for foreign investments only) where the custodial function is

delegated by the Trustee ;

(c) Tax and other duties charged on the Fund by the government and other authorities;

(d) The fees and other expenses properly incurred by the auditor appointed for the Fund;

(e) Fees for the valuation of any investments of the Fund by independent valuers for the benefit of the

Fund;

(f) Cost of printing the annual/interim reports;

(g) Costs incurred for the modification of the Deed of the Fund other than those for the benefit of the

Manager and/or Trustee;

(h) Cost incurred for any meeting of the Unit Holders other than those convened by, or for the benefit

of, the Manager and/or Trustee; and

(i) Any other fees/expenses permitted by the Deed.

Note:

(a) Expenses related to the issuance of this Prospectus are borne by the Manager.

(b) The above expenses are subject to the GST at the prevailing rate.

5.06



4.4 Policy on Rounding Adjustment

The NAV per unit of the Fund is rounded to four (4) decimal places. Your purchase value, redemption value,

investment value, units held and charges payable will be rounded to two (2) decimal places. The fees payable

and expenses incurred by the Fund will also be rounded to two (2) decimal places.

5.03

4.5 Goods and Services Tax (“GST”)

GST was implemented with effect from 1 April 2015 onwards pursuant to the Goods and Services Tax Act

2014. Collective investment schemes are generally exempted from GST. However, some fees, charges and

expenses of the Fund are subject to GST which includes:

(a) Sales charge;

(b) Repurchase charge (if any);

(c) Management fee;

(d) Trustee fee;

(e) Switching fee (if any);

(f) Transfer fee (if any); and

(g) Any other expenses of the Fund that may be subject to GST as may be notified by the Royal Malaysian

Custom Department.

The prevailing rate of the GST is 6% of the abovementioned charges, fees and expenses. You should note that

the charges, fees and expenses disclosed in this Prospectus (including any supplementary or replacement

prospectus) and the Deed (including any supplemental deed) are exclusive of the GST.

4.6 Rebates and Soft Commission 5.07

The Manager and/or its delegate will not retain any rebate from, or otherwise share in any commission with,

any broker or dealer in consideration for directing dealings in the Fund’s assets. Accordingly, any rebate or

shared commission will be directed to the account of the Fund.

However, the Manager and/or its delegate may retain goods and services (soft commissions) provided by

any broker or dealer provided that the goods and services are of demonstrable benefit to Unit Holders and

in the form of research and advisory services that assist in the decision making process relating to the Fund’s

investments.

There are fees and charges involved and investors are advised to consider the fees and charges

before investing in the Fund.

The fees and charges are subject to any applicable taxes (including but not limited, to the GST at the

prevailing rate in accordance with the Goods and Services Tax Act 2014) and/or duties as may be

imposed by the government or other authorities from time to time.

5.08



5. TRANSACTION INFORMATION

5.1 Determination of Prices

In this section of the Prospectus, investors will be introduced to certain terms used by the Manager to explain

how the Fund arrives at its NAV and consequently, NAV per unit for each Class of the Fund.

The Fund’s NAV is based on forward pricing and is determined by deducting the value of the Fund’s liabilities

from the value of the Fund’s assets at a valuation point where the NAV is in the base currency. Please refer to

section 3.11(b) of this Prospectus on the valuation point of the Fund.

The NAV per unit of a Class is computed by the NAV of the Fund attributable to a Class divided by the number

of units in circulation for that particular Class, at the same valuation point.

‘Multi-class ratio’ (“MCR”) is the apportionment of the size of the Class relative to the Fund, expressed in

percentage. The MCR is calculated by taking the value of a Class before income and expenses for a particular

day and dividing it with the total value of the Fund before income and expenses for that day, as per formula

below –

Value of the Class before income & expenses for the day (in Base Currency)

X 100 Total value of the Fund before income & expenses for the day (in Base

Currency)

Assuming by the end of the Initial Offer Period, the following information is as below –

Value of MYR Class = MYR250,000 or 500,000 units @ MYR0.5000 per unit

Value of USD Class = USD50,000 or 100,000 units @ USD0.5000 per unit

Rate of exchange: USD1 = MYR4.40

MYR Class USD Class Fund’s Total

Units in circulation 500,000 100,000 -

Value in Class denomination MYR250,000.00 USD50,000.00 -

Value in Base Currency (MYR) MYR250,000.00 MYR220,000.00 MYR470,000.00

MCR 53.19% 46.81% 100.00%

“Total value of the Fund before income & expenses” refers to the current value of the Fund inclusive of sales

and/or repurchases before the next valuation point.

“Value of the Class before income & expenses” refer to the current value of a particular Class inclusive of sales

and/or repurchases before the next valuation point.

The determination of the NAV per unit after the Initial Offer Period on a particular business day is

illustrated as below, based on the assumption –

Value of the MYR Class before income & expenses : MYR5,000,000.00

Value of the USD Class before income & expenses : USD250,000.00

Exchange rate : USD1 = MYR4.40

6.03

6.05



Fund’s Total MYR Class USD Class

Value of the Class before income &

expenses in Base Currency (MYR)

6,100,000.00 5,000,000.00 1,100,000.00

MCR 100.00% 81.97% 18.03%

Add: Fund’s Income (MYR) 100,000.00 81,970.00 18,030.00

Gross Asset Value (MYR) 6,200,000.00 5,081,970.00 1,118,030.00

Less: Fund’s Expenses (10,000.00) (8,197.00) (1,803.00)

NAV of the Fund (before management

fee & trustee fee) (MYR)

6,190,000 5,073,773.00 1,116,227.00

Less: Management fee @ 1.80% per

annum for the day (MYR)

(305.26) (250.22) (55.04)

Less: Trustee’s fee @ 0.04% @ per

annum for the day (MYR)

(6.78) (5.56) (1.22)

NAV of the Fund (after management

fee and trustee fee) (MYR)

6,189,687.96 5,073,517.22 1,116,170.74

Less: 6% GST on the management fee (18.32) (15.02) (3.30)

Less: 6% GST on the trustee fee (0.41) (0.34) (0.07)

NAV of the Fund for the day 6,189,669.23 5,073,501.86 1,116,167.37

Units in circulation for the day - 10,000,000 500,000

NAV per unit in Base Currency¹

(MYR)

0.507350186 2.23233474

NAV per unit in Class denomination² (rounded to 4 decimal

points)

MYR0.5074 USD0.5073

¹ NAV of the particular Class of units in Base Currency divided by units in circulation of that Class of units.

² NAV per unit of the particular Class of units in Base Currency divided by the rate of currency exchange of the

Class of units against the Base Currency. In the above illustration, the rate of exchange is USD1 is equivalent

to MYR4.40.

5.2 Sales of Units 6.06

(a) Foreign Currency Account

Investors and/or transferees intending to invest in or hold the Fund in a Class of units other than MYR

Class of units are required to have a foreign currency account with any financial institutions as all

transactions relating to that particular of Class of units will be conducted in the currency of that Class

of units and through telegraphic transfers.



(b) Selling Price

During the Initial Offer Period, the selling price per unit is equivalent to the initial offer price per unit

that is MYR0.5000 (for MYR Class) and USD0.5000 (for USD Class) (both exclusive of sales charge and

GST).

After the Initial Offer Period, the selling price per unit is equivalent to the NAV per unit for that

particular Class of units (exclusive of sales charges and GST).

Assuming the initial offer price per unit or the NAV per unit for MYR Class on a particular business

day is MYR0.5000, the sales charge is 5.0% of the initial offer price per unit, or the NAV per unit, and

the GST is 6.0%, the computation of the amount payable, amount invested and amount of charges and

tax incurred is illustrated as below –

(i) By amount payable – MYR10,000.00

Sales charge with GST = 5.0% + (5.0% X 6.0%)

= 5.3%

Amount payable per unit = MYR0.5000 + (MYR0.5000 x 5.3%)

= MYR0.5265

Units received = MYR10,000 ÷ MYR0.5265

= 18,993.35

Amount invested = Units received x initial offer price or NAV per unit

= 18,993.35 x MYR0.5000

= MYR9,496.68

Sales charge = Amount invested x Sales charge per unit

= MYR9,496.68 x 5.0%

= MYR474.83

GST payable = Sales charge x GST rate

= MYR474.83 x 6.0%

= MYR28.49

(ii) By number of units – 10,000 units of MYR Class

Amount invested = No. of units x Initial offer price or NAV per unit

= 10,000 units x MYR0.5000

= MYR5,000.00

Sales charge payable = Amount invested x sales charge per unit

= MYR5,000.00 x 5.0%

= MYR250.00

GST payable = Sales charge payable x GST rate

= MYR250.00 x 6.0%

= MYR15.00

Amount payable = Amount invested + Sales charge + GST payable

= MYR5,000.00 + MYR250.00 + MYR15.00

= MYR5,265.00



(c) Minimum Initial and Additional Investment

Minimum initial investment

Individual : MYR 1,000.00 (for MYR Class)

USD 1,000.00 (for USD Class)

Institutional : MYR 10,000.00 (for MYR Class)


Minimum additional investment

Individual : MYR 100.00 (for MYR Class)

USD 100.00 (for USD Class)

Institutional : MYR 1,000.00 (for MYR Class)


(d) Sales Procedures

(i) Initial Investment

• Obtain a copy of the Prospectus, an Application Form and the Fund’s Product Highlight

Sheet (“PHS”) from our sales offices disclosed in ‘List of Distribution Channel’ or our unit

trust consultants (UTCs). The Prospectus, the Application Form and the Fund’s PHS are

also available at our website www.pmbinvestment.com.my.

• Complete the Application Form and return to our sales offices or UTC together with

relevant documents, and evidence of payment for purchase of units.

Individual Investors

• Master Application Form (for the first

time investor);

• Investment Request Form;

• Suitability Assessment Form;

• Photocopy of NRIC (for Malaysian) or

passport (for foreigner);

• CRS Self Certification Form; and

• Payment or proof of payment.

Institutional Investors

• Master Application Form (for the first

time investor);


• Suitability Assessment Form;

• A copy of Board of Directors’

resolution or authorization letter;

• A copy of constitution documents i.e.

Memorandum and Articles of

Association, and Certificate of

Incorporation;

• List of authorized signatories and

specimen signature;

• CRS Self Certification Form; and

• Payment or proof of payment

(ii) Additional Investment

• Obtain an Investment Request Form from our sales offices disclosed in ‘List of

Distribution Channel’ or our unit trust consultants (UTCs). The Investment Request Form

is also available at our website www.pmbinvestment.com.my.



• Complete the Investment Request Form return to our sales offices or UTC together with

relevant documents, and evidence of payment for purchase of units.

Individual Investors


• Suitability Assessment Form (if the

last assessment was made more than

three (3) years ago); and

• Evidence of payment.

Institutional Investors


• Suitability Assessment Form (if the

last assessment was made more than

three (3) years ago) ; and

• A copy of Board of Directors’

resolution or authorization letter;

• Evidence of payment

(iii) Mode of Payment (for MYR Class)

• Telegraphic transfer, inter-bank GIRO or online banking

You may transfer the amount payable directly into our bank account via telegraphic

transfer/inter-bank GIRO/online banking. Please include your name in the transaction

description where applicable for reference.

• Cheques or bank drafts

Payment via cheques or bank drafts or money order should be made payable to “PMB

Investment Berhad” drawn on a local bank, and crossed. Please write your name and

NRIC number or passport number or corporate/ institutional registration number at the

back of the cheque, draft or money order. Application shall be processed based on the net

amount received. Where payment is by personal cheque, the cheque must be issued by

the investor. Bank charges, if any, for outstation cheques will be borne by you.

• Auto-debit facility

You may choose to invest on a regular basis through a bank auto-debit (standing

instruction) facility at the following financial institutions:-

(i) Bank Simpanan Nasional

(ii) CIMB Bank Berhad

(iii) Maybank Berhad/Maybank Islamic Berhad

(iv) RHB Bank Berhad/RHB Islamic Bank Berhad

• Salary deduction

If your employer provides a salary deduction scheme, you may invest regularly by

applying for the salary deduction instruction from your employer or through ANGKASA,

where applicable.

Details of our principal bank accounts are as below –

Bank Account Number

Bank Islam (Malaysia) Berhad 14153010008206

Bank Muamalat (Malaysia) Berhad 14010003688717

Bank Simpanan Nasional Berhad 1410041000230532



CIMB Islamic Bank Berhad 8600006139

Maybank Islamic Berhad 564342000138

Public Islamic Bank Berhad 3810755226

RHB Islamic Bank Berhad 21401360009660

(iv) Mode of Payment (for USD Class)

• Telegraphic transfer

You may transfer the amount payable directly into our bank account via telegraphic

transfer. Please include your name in the transaction description where applicable for

reference.

Details of our principal bank accounts are as below –

Bank Account Number

CIMB Islamic Bank Bhd 860295646250

Any charges or fees imposed by financial institutions relating to your payment to us will be borne by

you.

Investors must not make payment in cash to any individual Unit Trust Consultants when

purchasing units of the Fund.

(v) Acceptance of Application

The sales of units will be honored upon payment clearance, and a submission of a completed

application form. The application for purchase of units should reach us before the cut-off

time at 3.00 p.m. on any business day. The units will be issued, where applicable, at the initial

offer price per unit, or the NAV per unit calculated at the end of the business day on which

the application to purchase is received by us. Any application received after the cut-off time,

the request will be deemed to have been received on the next business day. We reserve the

right to vary the terms and conditions of investment and payment modes from time to time,

which shall be communicated to you in writing. In addition, we reserve the right to reject any

application without providing any reason, whatsoever. We may also reject any application

that is not complete and/or not accompanied by the required documents. We do not accept

application from any US persons.

(vi) Statement of Investment

Upon acceptance of the sales of units, we will issue a statement of investment within 14 days.

Investment certificate will not be issued in respect of purchase of units.

(vii) Cooling-off Policy

If you are a first time individual investor with us, you shall have the cooling-off right to

withdraw your purchase of units of the Fund. However, you should exercise the right within

six (6) business days commencing from the day the completed application is received and

accepted by us. This cooling-off right does not apply if you are our staff or a person registered

with a body approved by the SC to deal in unit trusts.

6.10

6.08



If you exercise your cooling-off right, you are entitled to receive a 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.

We will remit the refund to you within ten (10) days of our receipt of your cooling-off request.

(e) Minimum Holding of Units

We are not bound to satisfy your request for partial repurchase/ redemption, switching or transfer of

units if the request may result in your remaining holding of units in the Fund being less than MYR

1,000.00 (for MYR Class) or USD 1,000.00 (for USD Class) or 1,000 units for the relevant Class,

whichever is higher in value.

5.3 Repurchase/ Redemption of Units 6.06

(a) Repurchase/ Redemption Request

You may redeem your investment wholly or partially. The value of the repurchase/ redemption price

will be the NAV per unit at the end of the business day on which the request for repurchase/

redemption of units is received by us.

The cut-off time for the request to reach us is on or before 3:00 p.m. Any request received by us after

the cut-off time will be deemed to have reached us on the next business day.

For joint account, we will only accept the request for the repurchase/ redemption from the principal

Unit Holder, or jointly the principal Unit Holder and the joint Unit Holder.

Partial repurchase/ redemption shall be subject to the minimum holding of units, and the minimum

value of MYR 100 (for MYR Class) and USD 100.00 (for USD Class) per request.

There is no frequency limit for the request for repurchase/ redemption of units.

No repurchase/ redemption charge is imposed on the repurchase/ redemption of units.

However, we may refuse to your request for repurchase/ redemption of units if we are of the opinion

that repurchase/ redemption of units may not be in the interest of the existing Unit Holders.

(b) Repurchase/Redemption Price

Assuming the NAV per unit on a particular business day is MYR 0.5000 for MYR Class and you request

us to repurchase/ redeem 10,000 units, the amount received by you is illustrated as below-

Amount received = Units repurchased/redeemed x NAV per unit

= 10,000 x MYR 0.5000

= MYR 5,000.00

(c) Repurchase/ Redemption Procedures

• Obtain a Transaction Form from our sales offices as disclosed in ‘List of Distribution Channel’. The

form is also available at our website www.pmbinvestment.com.my

• Submit the completed form together with relevant documents to our sales offices.

Individual Unit Holder

• Completed Transaction Form; and

Institutional Unit Holder




• A copy of NRIC (for Malaysian) or

passport (for foreigner)

• Board of Directors’ resolution or

authorization letter

(d) Payment of Repurchase/ Redemption of Units

We will remit the payment of your repurchase/ redemption of units within ten (10) days from the

date of receipt of your request, provided that all required documents are completed and verified.

The proceeds of payment will be directly credited to your bank account via online banking services or

telegraphic transfer.

Any charges or fees imposed by financial institutions relating to the remittance of the payment will be

borne by you.

5.4 Transfer of Units 6.06

(a) Transfer Request

You may request to transfer wholly or partially your investment in the Fund to a person (“transferee”)

as nominated by you, provided that the transferee, if individual, is at least eighteen (18) years old.

Partial transfer of units will be subject to the minimum holding of units and the minimum value of

units of MYR 1,000.00 (for MYR Class) and USD 1,000.00 (for USD Class) per transfer.

If the transferee is not our existing Unit Holders, the request for transfer of units (through a Transfer

Form) must be accompanied with the documents as specified in the ‘Sales Procedures’ containing or

relating to, the information of the transferee.

In the case of bankruptcy or insanity of a Unit Holder or the occurrence of anything which renders a

Unit Holder legally incapable of holding any units of the Fund, any person becoming entitled to the

units (“transferee”) held by the Unit Holder may submit a request to transfer the units to his name in

place of the Unit Holder provided that such person is not under the age of eighteen (18) years, and all

documentations for transfer are complete and verified. For joint account, the units will be transferred

to a surviving joint Unit Holder.

In the case of the death of a Unit Holder who is not a Jointholder, his representative duly appointed by

operation of law (“transferee”) may submit a request to transfer the units to his name in place of the

deceased Unit Holder.

The transfer of units will be effected within thirty (30) days from the date of receipt of the request by

us.

The request for transfer of units is subject to a transfer charge of MYR10.00 per request, payable

upfront. The charge is subject to the GST at the prevailing rate.

(b) Transfer Procedures

• Obtain a Transfer Form from our sales office disclosed in ‘List of Distribution Channel’.

• Submit the completed Transfer Form to our sales office accompanied with relevant documents


• Completed Transfer Form;


• Completed Transfer Form;




passport (for foreigner) of Unit Holder

and transferee;

• Master Application Form (if the

transferee is not our existing unit holder);

and

• A certified copy of letter of probate,

power of attorney, or letter of

administration (in the case of death,

bankruptcy or insanity, where applicable)


authorization letter;

• A copy of constitution documents (for

institution) or a copy of NRIC (for

individual Malaysian) or passport (for

individual foreigner) of the transferee;

and

• Master Application Form (if the

transferee is not our existing unit holder)

5.5 Switching of Units 6.06

(a) Switching Request

You may switch wholly or partially your investment in the Fund to other funds managed by us

provided that units intended to be switched are denominated in the same currency. Cross currency

switching is not permitted.

Your switching request should reach us on or before 3:00 p.m. on a business day to be effected on the

same business day. Any request after the cut-off time will be effected on the next business day.

Partial switching will be subject to the minimum holding of units of the Fund, and the minimum value

of MYR 1,000 (for MYR Class) and USD 1,000 (for USD Class) per switching.

No charges is imposed for the first time request to switch out units of the Fund to other funds managed

by us. A switching charge of MYR25 per request for the second and subsequent request for switching

out units will be imposed and payable upfront. The switching charge is subject to the GST at the

prevailing rate.

Please note that we may refuse to any switching requests that are incomplete, or deemed as disruptive

to the efficient portfolio management, or to be contrary to the interest of the Fund and/or the existing

Unit Holders of a particular Class of units.

(b) Switching Price

The switching price will be at the NAV per unit of the Fund.

Assuming the Fund’s NAV per unit and other fund’s NAV per unit are MYR0.5000 and MYR1.0000 on

a particular business day, and you request to switch out 10,000 units of the Fund to the other fund.

The illustration is as below –

Switching-out fund Switching-in fund

= Units switched x NAV per unit of the Fund

= 10,000 units x MYR0.5000

= MYR5,000.00

= value of units switched ÷ the NAV of the fund

= MYR5,000 ÷ MYR1.0000

= 5,000 units

(c) Switching Procedures

• Obtain Transaction Request Form from our sales offices disclosed in ‘List of Distribution Channel’.

The form is also available in our website www.pmbinvestment.com.my



• Submit the completed form to our sales office together with relevant documents




passport (for foreigner)




authorization letter

5.6 Dealing of Units 6.06

Any application or request for purchase, repurchase/ redemption, transfer, and/or switching of units can be

transacted during any business day between 9:00 a.m. until 3:00 p.m. at our business office or sales offices

disclosed ‘List of Distribution Channels’.

5.7 Incorrect Pricing

In the case of valuation or pricing error, we will take immediate remedial action to rectify the error.

Rectification shall, where necessary, extend to the reimbursements of money as follows if the error is at or

above the significant threshold of 0.5% of the NAV per Unit attributable to a Class of Units –

(a) if there is an over valuation and/or pricing in relation to the purchase and creation of units, the Fund

shall reimburse the Unit Holder;

(b) if there is an over valuation and/or pricing in relation to the redemption of units, we shall reimburse

the Fund;

(c) if there is an under valuation and/or pricing in relation to the purchase and creation of units, we shall

reimburse the Fund; and

(d) if there is an under valuation and/or pricing in relation to the redemption of units, the Fund shall

reimburse the Unit Holder or former Unit Holder.

We retain the discretion whether or not to reimburse if the error is below 0.5% of the NAV per unit attributable

to a Class of units or where the total impact on an individual account is less than MYR10.00 or an equivalent

denomination in the currency of that particular Class of units, in view that the reprocessing cost may be greater

than the amount of the adjustment.

5.8 Unclaimed Monies 6.11

Any monies payable to you relating to your investments in the Fund that remain unclaimed after twelve (12)

months from the date of payment is made will be remitted to the Registrar of Unclaimed Moneys in accordance

with the provisions of the Unclaimed Moneys Act, 1965.



6. THE MANAGER

6.1 Manager’s Profile

PMB Investment Berhad (PMB Investment) is a wholly owned subsidiary of Pelaburan MARA Berhad (PMB).

It is licensed under the CMSA as an Islamic fund management company. Incorporated on 15 January 1993

under the Companies Act, 1965, PMB Investment assumed the unit trust operations from PMB, then known

as Amanah Saham MARA Berhad (ASMB), and its related staff, following the requirement of the Securities

Commission Malaysia Act, 1993 that unit trust funds are to be managed by a unit trust management

company. On that premise, PMB Investment has been managing unit trust funds since 1968 when it launched

its first unit trust fund, then known as Kumpulan Modal Bumiputera Yang Pertama, on 6 April 1968, which

is now known as PMB Dana Al-Aiman. Currently, PMB Investment manages fourteen (14) unit trust funds,

two (2) wholesale funds and a number of private mandate funds.

Board of Directors

(i) Dato’ Abdul Malik bin Ismail - Independent/Chairman

(ii) Dato’ Sri Haji Abd. Rahim bin Haji Abdul - Independent

(iii) Dato’ Haji Mohamad Safie bin Haji Asnan @ Haji Asnawi - Independent

(iv) Professor Dr. Faridah binti Haji Hassan - Independent

(v) Haji Mansoor bin Ahmad - Independent

(vi) Nik Mohamed Zaki bin Nik Yusoff - Independent

(vii) Dato’ Ahmad Nazim bin Abd Rahman - Non-Independent /Group CEO

(viii) Najmi bin Haji Mohamed - Non-Independent/CEO

7.01 (a)

& (b)

6.2 Manager’s Roles, Duties and Responsibilities 7.02(a)

PMB Investment is responsible for the day-to-day management of the Fund, in accordance with the provision

of this Prospectus (as amended from time to time) the Deed, CMSA and the UTF Guidelines. Our main

functions, duties and responsibilities include but not limited to the following:-

(a) To marketing, distribute, sell and redeem units of the Fund;

(b) To maintain proper records of the Fund;

(c) To distribute annual and interim reports of the Fund;

(d) To provide customer services;

(e) To ensure that the interests of the Unit Holders are best served and protected at all times;

(f) To formulate and propose the portfolio strategy in line with the Fund’s investment objective and

Investment Committee direction;

(g) To review the performance and portfolio composition of the Fund and to make the necessary

recommendations thereof to the Investment Committee;

(h) To review the market trend (both local and international) and make the necessary recommendation

to the Investment Committee;

(i) To recommend stocks or other investment instruments in line with the Fund’s objectives;



(j) To undertake in depth market and company research so as to assist the Investment Committee in

their decision making; and

(k) To be responsible for the day to day management of the Fund consistent with the UTF Guidelines and

the direction of the Investment Committee.

6.3 Manager’s Delegate

We have appointed the following parties as our delegates –

(a) Pelaburan MARA Berhad (“PMB”)

PMB is a strategic investment and asset management company wholly-owned by Majlis Amanah

Rakyat (MARA), a statutory agency of the Government of Malaysia. Established on 24 June 1967,

PMB is principally involved in private equity investments, portfolio fund management, unit trust

management, financial services and corporate advisory. PMB is the parent company of PMB

Investment.

PMB is responsible for the functions of Information Technology, Human Resource Development,

Corporate Communications, Administration, Compliance, Operational Risk Management, Internal

Audit, and Business Strategy and Planning.

(b) CIMB Islamic Trustee Berhad (“CITB”)

CITB was incorporated on 19 January 1988 and registered as a trust company under the Trust

Companies Act, 1949 and having its registered office at Level 13, Menara CIMB, Jalan Stesen Sentral

2, Kuala Lumpur Sentral, 50470 Kuala Lumpur, Malaysia.

CITB is responsible for the fund accounting and valuation function, including, but not limited to,

maintaining proper accounting records and carrying out daily valuation of the Fund in accordance

with the requirements of the relevant laws, the Prospectus and the Deed of the Fund.

CITB is also the trustee of the Fund.

All fees and expenses arising out of the appointment of these delegates are not charged to the Fund and are

solely borne by the Manager.

6.4 Material Litigation 7.02 (b)

As at LPD, PMB Investment was not engaged, pending or threatened, in any material litigation and

arbitration. It was also disclosed under the Director’s Report that there is no contingent liability that will or

may substantially affect our ability to meet the obligations as and when they fall due.

6.5 Investment Committee

a) Investment Committee Members

i) Haji Mansoor bin Ahmad - Independent/Chairman

ii) Nik Mohamed Zaki bin Nik Yusoff - Independent

iii) Professor Dr. Mohamed Aslam bin Mohamed Haneef - Independent

iv) Dato’ Ahmad Nazim bin Abd Rahman - Non-Independent

7.03

7.03



b) The roles and primary functions of the Investment Committee are as follows:-

i) To ensure the consistency between the investment management policies of the Fund are

consistent and the Fund’s objectives, this Prospectus (as amended from time to time), the Deed

and the UTF Guidelines and other relevant laws;

ii) To formulate investment policies and plan, and to select appropriate strategies to meet the

Fund’s objectives;

iii) To provide guidance and advice in the implementation of the strategies;

iv) To actively monitor, measure and evaluate the investment performance of the Fund and the

designated fund manager;

v) To consider other matters deemed necessary for the benefit of the Fund; and

vi) To recommend the Fund’s income distribution and/or unit splitting for the Trustee’s approval;

and

vii) To meet at least once every two (2) months to monitor the management activities of the

Management Company.

6.6 Shariah Adviser

a) Profile of the Shariah Adviser

BIMB Securities Sdn Bhd (BIMBSEC) is a stockbroking subsidiary of BIMB Holdings Bhd. It was

incorporated on 21 February 1994.

The company’s corporate mission is to actively participate in a modern, innovative and dynamic

Islamic capital market in Malaysia, catering for the needs of both Muslim and Non-Muslim investors

looking for Shariah-compliant products and services. BIMBSEC is a Shariah Adviser to 22 Islamic

unit trust funds, and is a registered Shariah adviser with the SC. As at LPD, the staff strength of

BIMBSEC consists of 72 employees of whom 67 are executive staff and 5 are non-executive staff.

The company has an authorised share capital of MYR250 million, and its current issued and paid-up

share capital is MYR100 million.

b) Designated Person Responsible for Shariah Matters

Ir. Dr. Muhamad Fuad bin Abdullah

Ir. Dr. Muhamad Fuad, the designated person in-charge of all Shariah matters in BIMBSEC is also

appointed to the Shariah Advisory Committee of BIMBSEC effective 1st June 2011.

He graduated with a Bachelor of Science Degree in Electrical Engineering in 1977 and a Master of

Philosophy Degree in Electrical Engineering in 1982, both from the University of Southampton,

England. He also obtained a Bachelor of Arts (Jayyid) Degree in Shariah from the University of Jordan

in 1994 and a Doctor of Philosophy in Muslim Civilization from the University of Aberdeen, Scotland

in 1996.

Currently Dr. Muhamad Fuad serves as the Chairman of the Shariah Committee of MIDF Group of

Companies. He is also a registered Shariah Adviser with the SC.

He sits on the boards of Gagasan Nadi Cergas Berhad, Mesiniaga Berhad, PNB Commercial Sdn Bhd,

Universiti Tun Abdul Razak Sdn Bhd and Institut Kefahaman Islam Malaysia (IKIM), a public

7.04 (a),

(b) &

(c)



company limited by guarantee. He also sits on the Board of Universiti Sains Islam Malaysia (USIM)

and its subsidiary USIM Tijarah Holdings Sdn Bhd.

Since the formation of the Association of Shariah Advisers for Islamic Finance (ASAS) in 2012, Dr.

Muhamad Fuad has been a member of its Executive Committee. He is the Chairman of the Advisory

Panel of the Faculty of Shariah and Law of USIM since 4th October 2016.

Dr. Muhamad Fuad is a recipient of the National Book Award 2015 for his book published by IKIM

entitled “The Influence of Islam Upon Classical Arabic Scientific Writings: An examination of the

Extend of Their Reference to Quran, Hadith and Related Texts”

Dr. Muhamad Fuad is the designated Shariah person in-charge of PMB Investment’s funds.

c) Roles and Functions of Shariah Adviser

i) To advise on all aspects of unit trust and fund management business in accordance with

Shariah principles;

ii) To provide Shariah expertise and guidance in all matters, particularly on the Fund’s deed and

prospectus, Fund structure, investments and other operational matters;

iii) To ensure that the Fund is managed and operated in accordance with Shariah principles,

relevant SC regulations and standards, including resolutions issued by the SAC of the SC;

iv) To review the Fund’s compliance reports as provided by the compliance officer and

investment transaction reports provided by or duly approved by the Trustee, to ensure that

the Fund’s investments are in line with Shariah principles;

v) To prepare a report to be included in the Fund’s annual and interim reports stating its opinion

whether the Fund has been operated and managed in accordance with the Shariah principles

for the financial period concerned;

vi) To consult the SC where there is ambiguity or uncertainty as to an investment, instrument,

system, procedure and/or process; and

vii) The Shariah Adviser shall meet with the Fund Manager on a quarterly basis for review of the

Fund management and to have any other ad-hoc meeting as required.

6.7 Designated Fund Manager 7.05

Isnami bin Ahmad Mohtar

Isnami was appointed Acting Chief Investment Officer effective on 10 April 2014. He has been in the funds

management industry since 1996 when he was appointed Senior Investment Officer at PMB Investment to

manage some Bumiputera funds. He was subsequently promoted to Portfolio Manager in 2000 and was given

larger responsibilities to manage Shariah and conventional unit trust and corporate funds. He was made

Senior Manager, Fund Management in 2003. He joined Inter-Pacific Asset Management Sdn Bhd in August

2007 as a Fund Manager, managing unit trust and corporate funds. He rejoined PMB Investment in April

2010 and was re-designated Head, Equity in January 2013. Isnami holds a Bachelor of Science degree in

Business Administration (Finance) from University of North Carolina at Charlotte, USA. He is the holder of a

Capital Markets Services Representative Licence (Islamic fund management).

For detailed information on the Manager, Investment Committee and Shariah Adviser, please visit

our website www.pmbinvestment.com.my.

7.07



7. THE TRUSTEE

7.1 Corporate Information 8.01(a)

CIMB Islamic Trustee Berhad was incorporated on 19 January 1988 and registered as a trust company under

the Trust Companies Act, 1949 and having its registered office at Level 13, Menara CIMB, Jalan Stesen Sentral

2, Kuala Lumpur Sentral, 50470 Kuala Lumpur, Malaysia. The Trustee is qualified to act as a trustee for

collective investment schemes approved under the Capital Markets and Services Act 2007.

7.2 Experience as Trustee to Unit Trust Funds 8.01(b)

CIMB Islamic Trustee Berhad has been involved in unit trust industry as trustee since 1990. It acts as Trustee

to various unit trust funds, real estate investment trust fund, wholesale funds and private retirement

schemes.

7.3 Duties and Responsibilities of the Trustee 8.01 (c)

The Trustee’s functions, duties and responsibilities are set out in the Deed. The general functions, duties and

responsibilities of the Trustee include, but are not limited to, the following:

a) Take into custody the investments of the Fund and hold the investments in trust for the Unit Holders;

b) Ensure that the Manager, operates and administers the Fund in accordance with the provisions of

the Deed, UTF Guidelines and acceptable business practice within the unit trust industry;

c) As soon as practicable, notify the SC of any irregularity or breach of the provisions of the Deed, UTF

Guidelines and any other matters which in the Trustee's opinion, may indicate that the interests of

Unit Holders are not served;

d) Exercise reasonable diligence in carrying out its functions and duties, actively monitoring the

operations and management of the Fund by the Manager to safeguard the interests of Unit Holders;

e) Maintain, or cause the Manager to maintain, proper accounting records and carrying out daily

valuation of the Fund in accordance with the Deed of the Fund, Prospectus, the UTF Guidelines and

securities law; and

f) Require that the accounts be audited at least annually.

The Trustee has covenanted in the Deed that it will exercise all due diligence and vigilance in carrying out its

functions and duties, and in safeguarding the rights and interests of Unit Holders.

7.4 Material Litigation and Arbitration 8.01(d)

As at LPD, CIMB Islamic Trustee Berhad is not engaged in any material litigation and arbitration, including

those pending or threatened, and is not aware of any facts likely to give rise to any proceedings which might

materially affect the business/financial position of the Trustee or any of its delegates.



7.5 Trustee’s Delegate

CIMB Islamic Trustee Berhad has delegated its custodian function to CIMB Islamic Bank Berhad (CIMB

Islamic Bank). CIMB Islamic Bank's ultimate holding company is CIMB Group Holdings Berhad, a listed

company on Bursa Malaysia.

CIMB Islamic Bank provides full-fledged custodial services, typically clearing settlement and safekeeping

of all types of investment assets and classes, to a cross section of investors and intermediaries client base,

both locally and overseas. For the local Ringgit assets, they are held through its wholly owned nominee

subsidiary “CIMB Islamic Nominees (Tempatan) Sdn Bhd”. For foreign non-Ringgit assets, CIMB Islamic

Bank appoints global custodian as its agent bank to clear, settle and safekeep on its behalf and to its order.

All investments are automatically registered in the name of the custodian to the order of the Trustee. CIMB

Islamic Bank acts only in accordance with instructions from the Trustee.

8.02(a)

& (b)



8. SALIENT TERMS OF DEED 9.01

8.1 Rights and Liabilities of Unit Holders 9.01(a)

(a) Unit Holders’ Rights

(i) To receive the distributions of income (if any), participate in any increase in the value of the

Units and to enjoy such other rights and privileges as provided for in the Deed.

(ii) Subject to the provisions of the Deed, to call for a Unit Holders’ meeting for any resolutions,

and also to vote for the removal of the Trustee or us through a special resolution.

(iii) To exercise your cooling-off period if you invest for the first time with PMB Investment

except for if you are either a non-individual client, staff of the Manager or a person

registered with a body approved by the SC to deal in unit trusts.

(iv) To receive annual reports and interim reports of the Fund, which are sent out within two

(2) months from the closing of each financial year and the interim period.

(b) Unit Holder’s Liabilities

Your liability is limited to the purchase price paid for the units as determined in accordance with the

Deed at the time the units were purchased and any charges payable in relation thereto.

(c) Limitations of Unit Holders’ Rights and Liabilities

(i) Unit Holders are not entitled to request for the transfer of any assets in the Fund or be

entitled to interfere with or question the exercise by the Trustee or by the Manager on the

Trustee’s behalf of the rights of the Trustee as the owner of such assets.

(ii) Unit Holders are not entitled to attend any meeting of shareholders, stockholders or

debenture holders or to vote or take part in or consent to any company or shareholders',

stock holders' or debenture holders' action.

(iii) Unit Holders are not liable for any amount in excess of the purchase price paid for the units

as determined in accordance with the Deed at the time the units were purchased and any

charges payable in relation thereto, by reason of any provision of the Deed and the

relationship created hereby between the Manager, the Trustee and the Unit Holders, or in any

event whatsoever.

(iv) Unit Holders are not under any obligation to indemnify the Manager and/or the Trustee in

the event that the liabilities incurred by the Manager and/or the Trustee in the name of or on

behalf of the Fund pursuant to and/or in the performance of the provisions of the Deed exceed

the value of the assets of the Fund, and any right of indemnity of the Manager and/or the

Trustee shall be limited to recourse to the Fund.

8.2 Maximum Fees and Charges 9.01(b)

& (c) Enlisted below are the maximum fees and charges permitted by the Deed:

Sales Charge 8.0% of the NAV per unit

Repurchase Charge 3.0% of the NAV per unit



Annual Management fee 2.5% per annum of the NAV of the Fund

Annual Trustee fee 0.5% per annum of the NAV of the Fund

All current fees and charges are disclosed in Chapter 4 of this Prospectus. The disclosed current fees and

charges in Chapter 4 of this Prospectus could be lower than that stated in the Deed. Any increase in the

current sale and/or repurchase charges stated in the current Prospectus could only be made if:

(a) the Manager has notified the Trustee in writing of the higher charge and the effective date of the

charge;

(b) a supplementary prospectus stating the higher charge has been registered, lodged and issued;

(c) time as required by the law has elapsed since the issuance of the supplementary prospectus; and

(d) the maximum fees or charges stated in the Deed shall not be breached.

Any increase in the current annual management fee and/or annual trustee fee stated in the Prospectus could

only be made if:

(a) (for management fee) the Manager has notified the Trustee in writing of the new higher rate and the

Trustee agrees to it;

(b) (for Trustee fee) the Trustee has notified the Manager in writing of the new higher rate, and the

Manager agrees to it;

(c) the Manager has notified unit holders of the higher rate and its effective date;

(d) a supplementary prospectus stating the higher rate of fees has been registered, lodged and issued;

(e) time as required by the law has elapsed since the issuance of the supplementary prospectus; and

(f) the maximum fees stated in the Deed shall not be breached.

Any increase of the fees and/or charges above the maximum rate stated in the Deed shall require Unit

Holders’ approval and can only be made by way of a supplemental deed and in accordance with the

requirements of the Act.

If any goods and services tax is imposed on or made payable by Unit Holders by virtue of any law, regulation,

directive or order by any governmental authority, in connection with or in relation to any dealings in Units

of the Fund or any services provided by the Manager or the Trustee in connection with or in relation to the

Fund, Unit Holders shall pay such goods and services tax to the Manager and/or the Trustee for onward

payment to the relevant governmental authorities.

8.3 Permitted Expenses 9.01(d)

Only the expenses (or part thereof), which are directly related and necessary to the operation and

administration of the Fund may be charged to the Fund. These would include (but are not limited to) the

following:

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

contract notes or confirmation notes;

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

(c) costs, fees and expenses properly incurred by the auditor appointed for the Fund;



(d) costs, fees and expenses incurred for the valuation of any investment of the Fund by independent

valuers for the benefit of the Fund;

(e) 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;

(f) 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;

(g) costs, commissions, fees and expenses of the sale, purchase, insurance and any other dealing of any asset

of the Fund;

(h) costs, fees and expenses incurred in engaging any specialist approved by the Trustee for investigating

or evaluating any proposed investment of the Fund;

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

Fund;

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

the Fund;

(k) 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;

(l) 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);

(m) remuneration and out of pocket expenses of the independent members of the Investment Committee of

the Fund, unless the Manager decides otherwise;

(n) 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;

(o) costs and expenses incurred in relation to the distribution of income, if any; and

(p) charges or fees paid to sub-custodian taking into custody any foreign assets of the Fund (where the

custodial function is delegated by the Trustee).

8.4 Removal, Replacement, and Retirement 9.01(e)

(a) The Manager

(i) The Manager shall have the power to retire in favour of some other corporation and as necessary

under any relevant law upon giving to the Trustee a twelve (12)-month notice, in writing of its

desire so to do, or such lesser time as the Manager and the Trustee may agree upon, and subject

to the fulfilment of the following conditions –

(a) the retiring Manager shall appoint such corporation by writing under the seal of the

retiring Manager as the management company of the Fund in its stead and assign to

such corporation all its rights and duties as management company of the Fund;

(b) such corporation shall enter into such deed or deeds as are referred to in the Deed;

(c) upon the payment to the Trustee of all sums due from the retiring Manager to the



Trustee at the date of such retirement, the retiring Manager shall be absolved and

released from all further obligations under the Deed but without prejudice to the rights

of the Trustee or of any Unit Holder or other person in respect of any act or omission

on the part of the retiring Manager prior to such retirement and the new management

company may and shall thereafter exercise all the powers and enjoy all the rights and

shall be subject to all the duties and obligations of the Manager hereunder as fully as

though such new management company had been originally a party to the Deed.

(ii) The Trustee shall take all necessary steps to remove the Manager:

(a) if 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 interests of 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 relevant authorities and with the

approval of the Unit Holders by way of a Special Resolution;

(b) unless expressly directed otherwise by the relevant authorities, if the Manager is in

breach of any of its obligations or duties under the Deed or the relevant laws, or has

ceased to be eligible to be a management company under the relevant laws; or

(c) 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;

and the Manager shall not accept any extra payment or benefit in relation to such removal.

(iii) In any of the events as described in Subsection 8.5(a)(ii) of this Prospectus, the Manager shall

upon receipt of a written notice from the Trustee cease to be the management company of the

Fund by the mere fact of the Manager’s receipt of the notice. The Trustee shall, at the same time,

by writing appoint some other corporation already approved by the relevant authorities to be

the management company of the Fund; such corporation shall have entered into such deed or

deeds as the Trustee may consider to be necessary or desirable to secure the due performance

of its duties as a management company for the Fund. The Trustee shall, as soon as practicable,

take all reasonable steps to -

(a) cause the Manager to transfer and deliver all books, documents, records and other

property whatsoever relating to the Fund to the corporation; or

(b) in the event that all books, documents, records and other property whatsoever

relating to the Fund have been transferred and delivered to the Trustee, ensure the

same shall be transferred and delivered to the corporation,

to enable the corporation to assume the duties of the Manager without unnecessary

interruptions.

Upon the retirement or removal of the Manager, the Manager shall immediately deliver to the new

management company and/or the Trustee all books, documents, records and other property

whatsoever relating to the Fund so that the new management company may immediately assume the

management of the Fund.

(b) The Trustee

(i) The Trustee may retire upon giving twelve (12) months' notice to the Manager of its desire so

to do, or such shorter period as the Manager and the Trustee shall agree, and may by deed



appoint in its stead or as an additional trustee a new trustee approved by the relevant

authorities and under any relevant law. Upon the retirement of the Trustee in accordance with

the Deed, the Manager shall appoint in writing some other corporation established under the

relevant laws and approved by the relevant authorities to be the trustee of the Fund. The

Trustee shall on retirement vest or transfer the assets of the Fund or cause them to be vested

in or transferred to such new trustee and shall deliver to such new trustee all books, documents,

records and other property whatsoever relating to the Fund.

(ii) The Trustee may be removed and another trustee may be appointed by Special Resolution of

the Unit Holders at a duly convened meeting of which notice has been given to the Unit Holders

in accordance with the Deed.

(iii) The new trustee appointed shall execute a deed in such form as the Manager and the relevant

authorities may require whereby such new trustee shall undertake to the Manager and the 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 always 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 the retiring Trustee.

8.5 Termination of the Fund 9.01(f)

(a) The Fund or a Class of units may be terminated or wound up upon any occurrence of the following:

(i) the authorisation for the establishment of the Fund is withdrawn by the relevant authorities

in accordance with the relevant laws;

(ii) a Special Resolution to terminate the trust in respect to the Fund and to wind-up the Fund is

passed by the Unit Holders following the occurrence of –

(a) the Manager has gone into liquidation, except for the purpose of reconstruction or

amalgamation upon terms previously approved in writing by the Trustee and the

relevant authorities;

(b) in the opinion of the Trustee, the Manager has ceased to carry on business; or

(c) in the opinion of the Trustee, the Manager has, to the prejudice of Unit Holders, failed

to comply with the provisions of the Deed or contravened any of the provisions of

any relevant law;

and the Trustee shall apply to the Court for an order confirming such Special Resolution;

(iii) a Special Resolution is passed at a Unit Holders’ meeting to terminate or wind up the Fund or

a Class of units. The Manager may only terminate a particular class of Units if such termination

does not prejudice the interests of Unit Holders of any other class of Units. For avoidance of

doubt, the termination of a particular class of Units shall not affect the continuity of any other

class of Units of the Fund.

(b) If at a meeting of Unit Holders to terminate a particular class of Units, a Special Resolution to terminate

the class of Units is passed by the Unit Holders:

(i) the Trustee shall cease to create and cancel Units of that class of Units;

(ii) the Manager shall cease to deal in Units of that class of Units;

(iii) the Trustee and the Manager shall notify the relevant authorities in writing of the passing of



the Special Resolution;

(iv) the Trustee or the Manager shall as soon as practicable inform all Unit Holders of the Fund of

the termination of the class of Units; and

(v) the Trustee or the Manager shall publish a notice on the termination of that class of Units in

the manner as may be prescribed by the relevant laws.

(c) The Trustee shall then arrange for a final review and audit of the final accounts of the Fund attributable

to that class of Units by the auditor. Upon the completion of the termination of that class of Units, the

Trustee and the Manager shall notify the relevant authorities of the completion of the termination of

that class of Units.

8.6 Unit Holders’ Meeting 9.01(g)

(a) Meeting Requested by Unit Holders

(i) The Manager shall, within twenty-one (21) days of receiving an application from not less

than fifty (50) or one-tenth (1/10), whichever is less of all the Unit Holders of the Fund or

a particular class of Units, as the case may be, summon a meeting of the Unit Holders of the

Fund or of that class of Units by:

(a) sending by post at least seven (7) days before the date of the proposed meeting a

notice of the proposed meeting to all the Unit Holders or Unit Holders of a

particular class of Units;

(b) publishing at least fourteen (14) days before the date of the proposed meeting an

advertisement giving notice of the proposed meeting in a national language

newspaper published daily and another newspaper approved by the relevant

authorities;

(c) specifying in the notice the place, date and time of the meeting and the terms of the

resolutions to be proposed and considered at the meeting.

(ii) The Unit Holders may direct the Manager to summon a meeting for any purpose including,

without limitation, for the purpose of:

(a) requiring the retirement or removal of the Manager;

(b) requiring the retirement or removal of the Trustee;

(c) considering the most recent financial statements of the Fund;

(d) giving to the Trustee such directions as the meeting thinks proper; or

(e) considering any other matter relating to the Deed,

provided always that the Manager shall not be obliged to summon such a meeting unless

application has been received from not less than fifty (50) or one-tenth (1/10), whichever

is the less, of all the Unit Holders of the Fund or the Units Holders of a particular class of

Units.

(iii) For the avoidance of doubt, save for a meeting summoned for the purposes of (ii)(a) and

(b) above, the Unit Holders of a particular Class of units may direct the Manager to summon

a meeting only in respect of matters relating to that Class of units.



(b) Meeting Summoned by the Manager

The Manager may for any purpose whatsoever summon a meeting of the Unit Holders by sending

by post at least fourteen (14) days before the date of the proposed meeting, or such other time as

may be prescribed by the relevant laws, a notice of the proposed meeting to all the Unit Holders;

and specifying in the notice the date, time and place of the meeting, and the terms of resolutions to

be proposed at the meeting.

(c) Meeting Summoned by the Trustee

(i) The Trustee shall summon a Unit Holders’ meeting if –

(a) the Manager is in liquidation,

(b) in the opinion of the Trustee, the Manager has ceased to carry on business, or

(c) in the opinion of the Trustee, the Manager has, to the prejudice of Unit Holders,

failed to comply with the Deed or contravened any of the provisions of the Act.

The Trustee shall –

(a) send by post at least twenty-one (21) days before the date of the proposed meeting

a notice of the proposed meeting to each of the Unit Holders at the Unit Holder’s

last known address or, in the case of Jointholders, to the Jointholder whose name

stands first in the records of the Manager at the Jointholder’s last known address;

and

(b) publish at least twenty-one (21) days before the date of the proposed meeting an

advertisement giving notice of the meeting in a national language newspaper

published daily and another newspaper approved by the relevant authorities.

(ii) The Trustee may also summon a Unit Holders' meeting for any purpose including, without

limitation, for the purpose of:

(a) requiring the retirement or removal of the Manager;

(b) giving instructions to the Trustee or the Manager if the Trustee considers that the

investment management policies of the Manager are not in the interests of Unit

Holders;

(c) securing the agreement of the Unit Holders to release the Trustee from any

liability;

(d) deciding on the next course of action after the Trustee has suspended the sale and

repurchase of Units; and

(e) deciding on the reasonableness of the annual management fee charged to the Fund

or each class of Units.

The Trustee shall –

(a) send by post at least fourteen (14) days before the date of the proposed meeting,

or such other time as may be prescribed by the relevant laws, a notice of the

proposed meeting to all the Unit Holders; and

(b) specify in the notice the place, date and time of the meeting and the terms of

resolutions to be proposed and considered at the meeting.



(d) Quorum Required for a Unit Holders’ Meeting

(i) The quorum required for a meeting of the Unit Holders shall be five (5) Unit Holders,

whether present in person or by proxy, provided always that if the Fund or a class of Unit

has five (5) or less Unit Holders, the quorum required for a meeting of the Unit Holders of

the Fund or a class of Units shall be two (2) Unit Holders, whether present in person or by

proxy;

(ii) If the meeting has been convened for the purpose of voting on a Special Resolution, the

quorum required for the meeting shall be five (5) Unit Holders, present in person or by

proxy, holding in aggregate at least twenty five per centum (25%) of the Units in circulation

of the Fund or a class of Units at the time of the meeting.

(e) Voting at a Unit Holders’ Meeting

(i) Every question arising at any Unit Holders' meeting shall be decided in the first instance by

a show of hands unless a poll be demanded or if it be a question which under the Deed and

the requirements of the relevant laws, requires a Special Resolution a poll shall be taken.

On a voting by show of hands every Unit Holder who is present in person or by proxy shall

have one vote.

(ii) Where a voting by poll is taken, the votes by every Unit Holder present in person or by

proxy shall be proportionate to the number or the value of units held by a Unit Holder.

(f) Resolution Passed at a Unit Holders’ Meeting

Resolutions passed at a meeting of Unit Holders bind all Unit Holders whether or not they were

present at the meeting at which the resolutions were passed. No objection may be made as to any

vote cast unless such objection is made at the meeting.



9. APPROVALS AND CONDITIONS

The SC has authorized the Fund. There are no other authorizations or approvals required, sought or pending

from any relevant authorities in respect of the Fund.

10.01



10. RELATED PARTY TRANSACTIONS AND CONFLICT OF INTEREST

The Manager and the Trustee and any delegate thereof will endeavor to avoid conflicts of interest arising or,

if conflicts arise they will ensure that neither the Unit Holder nor the Fund is disadvantaged by the

transaction concerned. Any transaction or investment carried out by or on behalf of the Fund should be

executed at an arm’s length transaction. The Manager and our related corporations will not act as principal

in the sale and purchase of investments and the Fund will not invest in companies related to the Manager.

Where a conflict of interest arises due to the Investment Committee member or director holding substantial

shareholding or directorships of public companies, and the Fund invests in that particular share or stock, the

said committee member or director shall abstain from any decision making relating to investment in that

share or stock of the Fund.

Our employees who are directly involved in the investment management of the Fund or who have direct and

timely access to the daily trades done by the designated fund managers, are required to declare their dealing

in the securities.

To date, there has been no event of conflict of interest amongst us, employees, directors and Investment

Committee members. In the event a conflict or potential conflict of interest involving the Manager and

employees is identified, this will be evaluated by the Compliance Department and disclosed to the Chief

Executive Officer (CEO) for the next course of action. Conflict of interest situations involving the CEO,

directors and/or Investment Committee members will be disclosed to the Board of Directors for a decision

on the next course of action.

BIMB Securities Sdn Bhd being the Shariah Adviser for the Fund and broker for the Manager will endeavour

to avoid conflict of interest arising. To date, there are no existing or proposed related party transactions

involving or in connection with the Fund. Any transactions (if any) with the related party have been entered

into in the normal course of business and have been transacted at arm’s lengths basis.

11.01,

11.02 &

11.04



Our Ref : A31(T)/MG/JIE

7 February 2018

PMB Investment Berhad

Level 20, 1 Sentral

Jalan Rakyat

Kuala Lumpur Sentral

50470 Kuala Lumpur

Dear Sirs

TAXATION OF THE UNIT TRUST FUND AND UNIT HOLDERS

This letter has been prepared for inclusion in this Prospectus in connection with the offer of units in the

PMB Shariah Asean Stars Equity Fund (“the Fund”).

1. TAXATION OF THE FUND

The Fund is a unit trust for Malaysian tax purposes. The taxation of the Fund is subject to the

provisions of the Malaysian Income Tax Act 1967 (“ITA 1967”). The applicable provisions are

contained in Section 61 (trusts generally) and section 63B (special deduction of expenses) of the ITA

1967.

The Fund will be regarded as resident for Malaysian tax purposes since the Trustee of the Fund is

resident in Malaysia under S61(3) of the ITA 1967.

1.1 General Taxation

The income of the Fund in respect of investment income derived from or accruing in Malaysia

such as dividends, interest and profit (other than interest or profit which is exempt from tax)

after deducting tax allowable expenses under S33(1) and S63B of the Act is liable to income tax.

The income tax rate applicable to the Fund is 24% with effect from Year of Assessment 2016.

Gains on disposal of investments by the Fund will not be subject to Malaysian income tax. Such

gains, however, may be subject to real property gains tax under the Real Property Gains Tax

Act, 1976 (see 1.1.1.(e) below).

11. TAXATION OF THE FUND

Ahmad Abdullah & Goh (AF 0381)

Suite 701, Wisma Hangsam,

Jalan Hang Lekir’

50000 Kuala Lumpur, Malaysia

Telephone

Facsimile

Email

: 03-20704408

: 03-20704402

: 03-20704393

: [email protected]



1.1.1 Exempt Income

(a) Malaysian Sourced Dividends

Dividends received by the Fund from Malaysian companies are exempt from

income tax, and expenses in relation to such dividends are disregarded for

tax purposes.

(b) Malaysian Sourced Interest

(i) Interest from securities or bonds issued or guaranteed by the Government

of Malaysia; (subparagraph 35(a) of Schedule 6 of the ITA 1967);

(ii) Interest from debentures or Islamic securities, (other than convertible

loan stock) approved by the Securities Commission (subparagraph 35(b)

of Schedule 6 of the ITA 1967) or Labuan Offshore Financial Services

Authority (LOFSA);

(iii) Interest from Bon Simpanan Malaysia issued by Bank Negara Malaysia;

(Subparagraph 35(d) of Schedule 6 of the ITA 1967);

(iv) Interest derived from Malaysia and paid or credited by any banks or

financial institutions licensed under the Financial Services Act 2013 and

Islamic Financial Services Act 2013;

(v) Interest or profit paid or credited by any development financial institution

regulated under the Development Financial Institutions Act 2002;

(vi) Interest derived from bonds (other than convertible loan stock) paid or

credited by any company listed on the Bursa Malaysia Securities Berhad

ACE Market [formerly Malaysian Exchange of Securities Dealing and

Automated Quotation Berhad (MESDAQ)];

(vii) Interest received from bonds or securities issued by Pengurusan

Danaharta Nasional Berhad; (Income Tax (Exemption) (No.5) Order 2001

[P.U.(A)220/2001];

(viii) Interest from savings certificates issued by the Government; (paragraph

19 of Schedule 6 of the ITA 1967);

(ix) Interest received from a Sukuk Issue which has been issued by the

Malaysia Global Sukuk Inc - Income Tax (Exemption) (No. 31) Order 2002;

and

(x) Interest received from Sukuk Ijarah, other than convertible loan stock,

issued in any currency by 1Malaysia Sukuk Global Berhad - Income Tax

(Exemption) Order 2010.



Under Section 2(7) of the ITA 1967, 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 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.

(c) Discounts

(Tax exemption is given on discounts paid or credited to any unit trust in

respect of investments listed in 1.1.1.(b) (i) to (iii) above).

Interest income and discounts exempted from tax at the Fund level will also be

exempted from tax upon distribution to the unit holders.

(d) Foreign Sourced Income

Income of the Fund in respect of income received from overseas investments is

exempt from Malaysian tax by virtue of paragraph 28 of Schedule 6 of the ITA

1967 and distribution of such income will be tax exempt in the hands of the unit

holders. Such income from foreign investments may be subject to foreign taxes

or withholding taxes. Any foreign tax suffered on the income in respect of

overseas investment is not tax refundable to the Fund.

The foreign income exempted from Malaysian tax at the Fund level will also be

exempted from tax upon distribution to unit holders.

(e) Gains From The Realisation of Investments

Pursuant to Section 61(1)(b) of the ITA 1967, gains from the realisation of

investments will not be treated as income of the Fund and are not subject to tax.

Such gains may be subject to real property gains tax under the Real Property

Gains Tax Act 1976 (“RPGT Act“), if the gains are derived from the sale of

chargeable assets i.e. real properties or shares in real property companies, at the

applicable rate depending on the holding period of the chargeable assets.

(f) Tax Deductible Expenses

Tax deductible expenses are governed by Section 33(1) and Section 63B of the

ITA 1967.

Section 33(1) generally provides for deduction of expenses “wholly and

exclusively” incurred in the production of gross income, and Section 63B allows

the Fund deduction for a portion of other expenses (referred to as “permitted

expenses”) not directly related to the production of income. This special

deduction of expenses is subject to a minimum of 10% of the total permitted

expenses incurred for the basis period. The allowable portion of the permitted



expenses will be deducted from the aggregate income. If the aggregate income is

insufficient or there is no aggregate income, the unabsorbed portion of the

special deduction is not allowed to be carried forward to a subsequent year of

assessment.

(g) Goods and Services Tax (GST)

GST was implemented in Malaysia under the Goods and Services Tax Act 2014

effective from 1 April 2015 at a standard rate of 6%. It replaces the previous Sales

Tax Act 1972 and Service Tax Act 1975.

Based on the Guide on Fund Management issued by the Royal Malaysian Customs

Department on 27 October 2013, the investment activities of a unit trust fund

including the buying and selling of securities are exempt supplies. Therefore, a

unit trust fund makes wholly exempt supplies and is not required to be

registered for GST purposes.

However, certain expenses incurred by the Fund such as fund manager’s fees,

trustee fees and professional fees will be subject to GST at the standard rate if

the service providers are registered persons. If the Fund is making exempt

supplies, any input tax incurred by the Fund for the aforementioned expenses is

not claimable.

2. TAXATION OF UNIT HOLDERS

For income tax purposes, unit holders will be taxed on their share of the distributions received from

the Fund.

Thus, income received by unit holders from their investments in the Fund broadly falls under the

following categories: -

(i) Taxable Distributions

(ii) Non-Taxable and Exempt Distributions

In addition, unit holders may also realise gains from the sale of units.

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

2.1 Taxable Distributions

Unit holders will be taxed on an amount equivalent to their share of the total taxable income of

the Fund to the extent of the distributions received from the Fund.

Such distributions carry a tax credit in respect of the tax paid by the Fund. Unit holders will be

entitled to utilise the tax credit against any income tax payable by the unit holders. Any excess

over their tax liability is refundable to the unit holders.



2.2 Non-Taxable And Exempt Distributions

The distribution of dividends, tax exempt income, foreign income and gains from the

realisation of investments by the Fund, will not be subject to income tax in the hands of unit

holders in Malaysia.

The following types of income are tax exempt in the hands of unit holders: -

(a) Certain interest income and foreign sourced income is tax exempt at the unit trust level.

Unit holders who receive a distribution of such tax exempt income will not be subject to

income tax.

(b) Gains from disposals of investments by the Fund are not subject to tax. The distribution of

gains from such disposals is tax exempt in the hands of unit holders.

(c) Any gains realised by unit holders (other than dealers in securities, insurance companies or

financial institutions) on the sale, transfer or redemption of the units are treated as capital

gains and will not be subject to income tax.

(d) Unit holders electing to receive their income distribution by way of investment in new units

will be regarded as having purchased the new units out of their income distribution after

tax. Unit splits by the Fund are not taxable in the hands of Unit holders.

• Filing of Income Tax Return Forms

Unit holders have to declare their taxable distributions received from the Fund together

with their income from other sources.

• Rates of Tax

The Malaysian income tax chargeable on the unit holders will depend on their tax residence

status and whether they are individuals, corporations, non-corporations or trust bodies.

The relevant income tax rates are as follows: -

TYPES OF UNIT HOLDERS

RESIDENT AND NON-RESIDENT INCOME TAX RATES

Non-resident individuals and non-corporate

unit holders (such as associations and

societies)

• Flat rate at 28%

Resident individuals and non-corporate unit

holders (such as associations and societies)

• Scale rates from 0% to 28%

Co-operative societies • Scale rates from 0% to 24%

Non-SME companies • 24%



• Reduction of income tax rate of

0% to 4% from 24% based on the

increase in chargeable income

(for Years of Assessment 2017

and 2018)

Non-resident companies • 24%

SME companies (see Note below) and Limited

Liability Partnership (LLP)

• On first RM 500,000 chargeable

income at 18% (effective from

Year of Assessment 2017)

• 24% for chargeable income in

excess of RM500,000

• Reduction of income tax rate of

0% to 4% from 24% based on the

increase in chargeable income

(for Years of Assessment 2017

and 2018)

Note :

A SME is a company with paid up ordinary share capital of not more than RM2.5 million where the paid up

ordinary share capital of other companies in the same group is not more than RM2.5 million (at the

beginning of the basis period for a year of assessment).

NON-RESIDENT UNIT HOLDERS

(a) Non-resident unit holders are not subject to

withholding tax on distributions of income.

(b) 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

GOODS AND SERVICES TAX (GST)

Gains or income received by the unit holders are not subject to GST, i.e.

(i) Distributions of income from the Fund;

(ii) Distributions of foreign income from the Fund;

(iii) Unit split by the Fund and reinvestment of distribution; and

(iv) Gains from selling or redemption of units.



Any fee-based charges in relation to buying, transferring and switching of units should generally be subject

to GST if the supplier is GST registered.

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. Prospective investors should not

treat the contents of this letter as advice relating to taxation matters and are recommended to obtain

independent advice on the tax issues associated with their investments in the Fund.

Yours faithfully,

AHMAD ABDULLAH & GOH

GOH KENG JUAY

Partner



12. ADDITIONAL INFORMATION

12.1 How You Can Keep Track of Your Investment

You may access our website as the Fund’s NAV per unit will be published daily through our website

www.pmbinvestment.com.my. You may also contact our Investor Relation Careline: (03) 2785 9900, our

sales offices through calls or e-mail at the number and e-mail address as disclosed in ‘List of Distribution

Channel’, during normal business hours, 9:00 a.m. to 5:00 p.m. Mondays to Fridays (excluding public

holidays) for the same.

You may also read the monthly factsheet of the Fund as the factsheet will be uploaded to our website

monthly.

The annual and interim reports with information on the performance and investments of the Fund are issued

to unit holders of the Fund within two (2) months from the closing of its respective interim and financial

year periods.

14.01

12.2 Avenue of Advice to Prospective Investors

You may communicate with us via :

• Investor Relation Careline: (03) 2785 9900

• Email: [email protected]

• Website: Complete the feedback form at www.pmbinvestment.com.my

For investment in unit trusts, you may find answers to all your questions at www.fimm.com.my/investor/.

14.02

12.3 Deed of the Fund

The deed in respect of the Fund is dated 3 July 2017 which is available at the business office of the Manager.

14.03

12.4 Complaints

Should you wish to complain, you may lodge your complaint by writing to:

Investor Relation Unit

PMB Investment Bhd

Level 20, 1 Sentral,

Jalan Rakyat, Kuala Lumpur Sentral

50470 Kuala Lumpur

Please state the date, time, place of occurrence, person involved and nature of your complaint. You may also

lodge your complaint through telephone calls by contacting the department.



12.5 Anti-Money Laundering and Anti-Terrorism Financing (“AML/CFT”) Policies

(a) Policy

We have established an Anti-Money Laundering and Anti-Terrorism Financing (AMLCFT) Policies

and Procedures as required by the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds

of Unlawful Activities Act (AMLATFA) 2001. As such we will actively prevent and take measures to

guard against being used as a medium for money laundering and/or terrorism financing activities

and any other activity that facilitates money laundering and/or terrorism financing.

(b) Investor’s Identification and Verification

Pursuant to the AMLATFA, we have put in place procedures for identification and verification of

investors. Hence, we require you to provide us with your name, date of birth, national registration

card number, residential and business address, (and mailing address if different), name of beneficial

owner, address of beneficial owner, national registration card number of beneficial owner, date of

birth of beneficial owner or other official identification when you open or re-open an account.

Additional information from you may be required on a case by case basis in certain situations

throughout your investment with us in the Fund. Application without such information may not be

accepted and the application amount shall be returned to you.

(c) Suspicious Transaction Reporting

We are obliged to report to the Financial Intelligence and Enforcement Department of Bank Negara

Malaysia on any transaction which may raise our suspicion that the source of the investment capital

is originated or received from money laundering and terrorism activities, or proceeds from illegal

activities.

12.6 Privacy Notice under the Personal Data Protection Act (“PDPA”) 2010

Pursuant to the PDPA gazetted on 15th November 2013, we have put in place procedures in dealing with

your personal data being collected and retained by us. Please read our ‘Privacy Notice’ on our website

pmbinvest.com.my or request a copy of the Privacy Notice from sales offices.

12.7 Foreign Account Tax Compliance Act (“FATCA”)

FATCA is a United States of America (US) statute that, among others, requires foreign financial institutions,

including us, to report to the Inland Revenue Service (IRS) of the US on clients who are US persons. US

persons refers to a citizen of US; an individual lawfully admitted for permanent residence of the US; an

unincorporated association with a substantial number of members who are citizens of the US or are

individuals lawfully admitted for permanent residence of the US; or a corporation incorporated in the US.

To mitigate risk of non-compliance with FATCA, we will not accept any investment application from any US

persons.



12.8 List of Distribution Channel

Sales Offices:

Head Office

Level 20, 1 Sentral,

Jalan Rakyat, Kuala Lumpur Sentral

50470 Kuala Lumpur

Tel: 03-2785 9800 Fax: 03-2785 9901

Website: www.pmbinvestment.com.my

E-mail: [email protected]

Central Region

Wisma PMB, No. 1A, Jalan Lumut, 50400 Kuala

Lumpur

Tel: (03) 4045 4000 Fax: (03) 4044 3800

Email: [email protected]

Northern Region

No.46, 1/F Jalan Todak 2, Pusat Bandar Seberang

Jaya, 13700 Perai

Tel: (04) 390 9036 Fax: (04) 390 9041


Eastern Region

Lot D103, Tingkat 1, Mahkota Square, Jalan

Mahkota, 25000 Kuantan

Tel: (09) 515 8545 Fax: (09) 513 4545


Southern Region

No.17-01, Jalan Molek 1/29, Taman Molek, 81100

Johor Bahru

Tel: (07) 352 2120 Fax: (07) 351 2120


Sarawak

No. 59, Tingkat 1, Jalan Tun Jugah, 93350 Kuching

Tel: (082) 464 402 Fax: (082) 464 404


Sabah

Lot 2-3-19C, Tingkat 2 Plaza Wawasan, Lorong

Wawasan, 88000 Kota Kinabalu

Tel: (088) 244 129 Fax: (088) 244 419


6.07



13. DOCUMENTS AVAILABLE FOR INSPECTION

For a period of at least twelve (12) months from the date of issuance of this Prospectus, you may inspect a

copy of the following documents, where applicable, at our registered office and/or our business office,

without charge:-

(a) the Deed and supplemental deed(s) of the Fund;

(b) the current Prospectus and supplementary or replacement prospectus, if any;

(c) the latest annual and interim reports of the Fund.

(d) each material contract disclosed in the Prospectus and, in the case of a contract not reduced into

writing, a memorandum which gives full particulars of the contract;

(e) the audited financial statements of the Manager and the Fund for the current financial year and for

the last three financial years or if less than three years, from the date of incorporation or

commencement;

(f) any report, letter or other document, valuation and statement by an expert, any part of which is

extracted or referred to in the Prospectus. Where a summary expert’s report is included in the

Prospectus, the corresponding full expert’s report must be made available for inspection;

(g) writ and relevant cause papers for all material litigation and arbitration disclosed in the Prospectus;

and

(h) consent given by an expert disclosed in the Prospectus.

15.01(a),

(b), (c),

(d), (e),

(f), (g) &

(h)



APPENDICES

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PMB SHARIAH ASEAN STARS EQUITY FUND

Documents

Transcript of PMB SHARIAH ASEAN STARS EQUITY FUND