PACIFIC DANA AMAN __________________________________________________________________________

INTERIM REPORT FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2019

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FUND INFORMATION As At 30 September 2019 Name Of Fund : Pacific Dana Aman Manager Of Fund : Pacific Mutual Fund Bhd 199501006861 (336059-U) Launch Date : 16 April 1998 The Fund will continue its operations until terminated as

provided under Clause 12 of the Deed. Category Of Fund : Equity (Islamic) Type Of Fund : Growth and income Investment Objective : Pacific Dana Aman aims to provide the unitholders with

consistently above average returns in both income and capital growth over a medium* to long-term* period by investing in a wide portfolio of authorised securities and investments which comply with Shariah principles.

Income is in reference to the Fund’s distribution, which

could be in the form of cash or units. * Medium term is defined as a period of one to three years,

and long term is a period of more than three years. Performance Benchmark : Since inception to 17 July 2005 – RHB Islamic Index

18 July 2005 to 30 June 2007 – Syariah Index (KLSI) 1 July 2007 to 31 October 2007 – Composite benchmark: 75% Syariah Index (KLSI) 25% 3-Month Islamic Interbank Money Market (IIMM) Rate 1 November 2007 to 14 November 2009 – Composite benchmark: 75% FTSE Bursa Malaysia EMAS Shariah Index (FBMS) 25% 3-Month Islamic Interbank Money Market (IIMM) Rate From 15 November 2009 onwards – Composite benchmark: 95% FTSE Bursa Malaysia EMAS Shariah Index (FBMS) 5% 3-Month Islamic Interbank Money Market (IIMM) Rate

Distribution Policy : Distribution of income, if any, will be made once a year.

Fund Size : 158.42 million units

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Breakdown Of Unitholdings :

Size Of Holdings No. Of Unitholders

% Of Unitholders

No. Of Units (million)

5,000 units & below 449 15.21 1.29 5,001-10,000 units 436 14.77 3.16 10,001-50,000 units 1,358 46.00 32.84 50,001-500,000 units 682 23.10 81.78 500,001 units & above 27 0.92 39.35 Total 2,952 100.00 158.42

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Pacific Dana Aman Composite Benchmark (95% FBMS & 5% 3-Month IIMM Rate)

MANAGER’S REPORT 30 September 2019 Performance Review From 7 May 1998 (date of launch: 16 April 1998) to 30 September 2019, the Pacific Dana Aman registered a total return of 382.97%, while its composite benchmark (95% FTSE Bursa Malaysia EMAS Shariah Index [FBMS] and 5% 3-Month Islamic Interbank Money Market [IIMM] rate), rose 183.40%. For the interim period under review (1 April 2019 to 30 September 2019), the Fund registered a total return of 1.57%. In comparison, its benchmark rose 0.75%.

Comparison Between Fund’s Performance And Benchmark

Source: Lipper

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Investment Strategy Review The six-month period under review featured much volatility as communications between US and China spluttered in May 2019 and again in August 2019, escalating each time with sanctions on specific companies and further tariff hikes. Each quarrel was followed by a period of temporary peace and further negotiations, lifting battered equity markets which were further supported by interest rate cuts in the US as well as further easing in Europe. Domestically, large cap stocks were clear underperformers as reflected by the FBMKLCI though the absence of Financials as well as a higher proportion of mid/small cap and cyclical sectors supported the Shariah index. However, the stark underperformance of Malaysian equities relative to regional and global peers persisted as the proposed Asian mega merger between Axiata Group and Telenor fell through while the retention of Malaysia on the watch list for the FTSE Russell World Government Bond Index until March 2020 failed to improve sentiment. During the review period, the Fund trimmed equity exposure from an opening position of 89% to 85% at the start of May on profit-taking activity. The Fund subsequently took advantage of the weakness in May to add to key positions and throughout the period maintained an average invested level of about 88%. The Fund will continue to be nimble towards market developments to take advantage of improving investor sentiment while also maintaining a foundation in good quality, steady investments. Asset Allocation

The Shariah-compliant equity exposure (inclusive of Shariah-compliant warrants) of Pacific Dana Aman increased to 90.14% as at 30 September 2019 from 88.67% recorded at the beginning of the interim period under review due to fund redemptions.

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The 8.25% in Islamic collective investment scheme was placed in Pacific Dana Murni, a sukuk fund managed by the Manager. Such investment is in line with the objective of Pacific Dana Aman and is an efficient way to manage the exposure of Pacific Dana Aman in Islamic fixed income securities. The exposure of Pacific Dana Aman in the Islamic collective investment scheme is taken into account when assessing the asset allocation of Pacific Dana Aman in Islamic fixed income securities. Management fee on the Islamic collective investment scheme managed by the Manager is rebated to the Fund. Analysis Of Net Asset Value The net asset value (NAV) per unit of Pacific Dana Aman increased from RM0.3765 to RM0.3825 during the interim period under review. Meanwhile, total NAV of the Fund decreased from RM64,177,379 to RM60,594,969 due to fund redemptions. Market Review Equity Market Review The FBMKLCI outperformed its peers in the second quarter of 2019 as it posted a 1.9% gain against MSCI Asia Pacific ex-Japan which fell 1.6%. Most global equity markets made significant retreats as the talks between US and China fell through, but the local bourse held up as the index heavy telco sector was revitalized by news of potential value-accretive merger between Axiata and Telenor group’s Asian assets. In addition, Bank Negara’s 0.25% cut of the overnight policy rate in May also helped prop up the market, signalling support for economic growth. Foreign fund flows unveiled an inflection point in June with net buying of RM135 million, sparking hopes of ending recent outflows despite only marginally reducing YTD net sell to RM4.7 billion. Unfortunately, the rally did not last as the FBMKLCI fell 4.23% in the third quarter alongside regional markets. Foreign fund flows reversed with net selling of RM3.2 billion, bringing YTD outflows to RM7.9 billion. The decline was led by the Telco sector as it de-rated when the proposed mega merger between Axiata Group and Telenor’s Asian operations was called off. Banks were also a drag to the index due to concerns over subdued loan growth and margin contraction. On a positive note, Malaysia did not see exclusion or weightage reduction in the World Government Bond Index from FTSE Russell’s September review. However, the country remained on watchlist until its next review in March 2020 – dragging out the near-term overhang. Income Distribution Nil Unit Split Nil Significant Changes In The State Of Affairs Of The Fund • Following our revision of the Fund’s investment strategy, the Fund may have optional

investment in foreign exposure up to 30% of its NAV. However, the investment in foreign exposure (if any) will only be executed three (3) months after the date of this fund report. The core investment universe (i.e. local market) of the Fund remains unchanged.

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• The redemption charge of the Fund was revised as follows:

There is no redemption charge imposed on unitholders for the Fund. Note: By default, redemption proceeds will be paid out via bank transfer. Thus, it is important for you to furnish us your bank account detail upon your subscription of the Fund. The request for payment of redemption proceeds via cheque is treated on a case-to-case basis only and subject to the Manager’s approval. You will be charged a service fee of up to RM50 for each cheque requested and you will receive your redemption proceeds net of the service fee. You are encouraged to opt for bank transfer for redemption as there will be no fee imposed. Kindly contact us at 03-7712 3197 for details.

• The switching facility was amended as follows:

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

for the wholesale funds; - The minimum number of units to be switched is 1,000 units and the value of units

switched must meet the minimum investment amount of the switch-in Funds, whichever is higher;

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

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

Switching will be carried out at the prevailing NAV per unit of a Fund to be switched from and a Fund to be switched into on a business day, when we receive the switching request by 4.00 p.m. on any business day (subject to availability and terms of the Fund to be switched into). Value-added service (additional way to switch – applicable to individual investors only): you will also be able to switch your investment from one Fund to another Fund via fax or email (i.e. faxed or soft-copy documentation) with the following terms and conditions: - You accept that we shall not be held responsible for any delay or losses experienced

by you in the instances that are beyond our control (e.g. our email or fax is unreachable or busy).

- You accept that we reserve the right to carry out the due verification via phone, of which the call may be recorded.

- You accept that your switching instruction will only be carried out upon the receipt of the necessary documentation the completion of the due verification (if any) before the same cut-off time as indicated above.

- You accept that your risk profile (in our record) must at least match or higher than the risk classification of the Fund(s) you wish to switch into.

It is important to note that this is a value-added service for your convenience, we shall not be held responsible for the authenticity of your instructions, which we reasonably believe to be genuine. You may always opt for subscription via hard-copy documentation (as shown above) if you find the value-added service is not for you. You are advised to contact us at 03-7712 3197 to understand the details (e.g. documents required) of this value-added service before utilising it.

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Should the sales charge of a Fund to be switched into is higher than the sales charge imposed on a Fund to be switched from, then the difference in the sales charge between the two (2) Funds shall be borne by you. There will be no sales charge imposed if the Funds to be switched into has a lower sales charge than the Fund you are switching out from. If you have been imposed the highest sales charge in your switching transaction among our Funds, you are no longer required to bear any sales charge difference for subsequent switch transactions involving this specific batch of your investments. You are not entitled to any refund for the sales charge paid on a Fund being switched from, which exceeds that imposed on a Fund to be switched into.

• The distribution policy and reinvestment policy of the Fund were revised as follows:

Distribution of income is in the form of cash or units. When there are stock market corrections, bear markets or economic downturns, realised capital losses may outweigh realised gains, dividends and interest/profit sharing income received and thus result in no income distributions being possible. You may opt for income distributions to be paid out to you directly in cash by way of any relevant mode of payments as determined by the Manager i.e. By default, the Manager does not pay income distribution via cheque. All income distribution proceeds will be paid out via bank transfer. Thus, it is important for you to furnish us your bank account details upon your subscription of the Fund. We will reinvest your income distribution proceeds if the bank detail you provided is inaccurate resulting in failed bank transfer. In the absence of written instructions to the contrary, distributions declared by a Fund will be automatically reinvested into additional units of the Fund based on the NAV per unit of the Fund by the fourth business day (T+4) after the declaration of distributions at no cost. Income distribution amounting to less than or equal to the amount of RM200 will be automatically reinvested into additional units of the Fund based on the NAV per unit by the fourth business day (T+4) after the declaration of distributions. The request for payment of income distribution proceeds via cheque is treated on a case-to-case basis and subject to the Manager’s approval. You will be charged a service fee of up to RM50 for each cheque requested and you will receive your income distribution proceeds net of the service fee. A returned cheque through mail (if any) will be reinvested based on the respective Fund’s NAV per unit on the date that we received the cheque. You are encouraged to opt for bank transfer for income distribution as there will be no fee imposed. Kindly contact us at 03-7712 3197 if you need further clarification.

Circumstances That Materially Affect Interest Of Unitholders Nil Soft Commissions During the interim period under review, the Fund has received soft commissions from brokers. Soft commissions received from brokers are retained by the Manager for purchasing goods and services which are of demonstrable benefit to the unitholders and in the form of research and advisory services that assist in the decision-making process relating to the investment of the Fund such as research materials, data and quotation services, computer software, investment advisory services, and investment related publications.

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PACIFIC MUTUAL FUND BHD 199501006861 (336059-U) A member of the OCBC Group 1001, Level 10, Uptown 1, No. 1 Jalan SS21/58, Damansara Uptown, 47400 Petaling Jaya, Selangor Tel: 03-7712 3000 Fax: 03-7712 3001 E-mail: customercare@pacificmutual.com.my Website: www.pacificmutual.com.my INSTITUTIONAL UNIT TRUST ADVISERS OCBC Bank (Malaysia) Berhad (295400-W) Tel: 1300 88 7000 OCBC Al-Amin Bank Berhad (818444-T) Tel: 1300 88 0310 Standard Chartered Bank Malaysia Berhad (115793-P) Tel: 03-2117 7777 HSBC Bank Malaysia Berhad (127776-V) Tel: 1300 88 1388 HSBC Amanah Malaysia Berhad (807705-X) Tel: 1300 80 2626 CIMB Bank Berhad (13491-P) Tel: 1300 88 0900 CGS-CIMB Securities Sdn. Bhd. (48703-W) Tel: 03-2635 6666 (A Participating Organisation of Bursa Malaysia Securities Berhad) United Overseas Bank (Malaysia) Bhd (271809-K) Tel: 03-2612 8121 Alliance Bank Malaysia Berhad (88103-W) Tel: 03-2604 3333 CIMB Investment Bank Berhad (18417-M) Tel: 03-2261 8888 RHB Bank Berhad (6171-M) Tel: 03-9206 8118 iFAST Capital Sdn Bhd (782978-H) Tel: 03-2149 0600 Phillip Mutual Berhad (570409-K) Tel: 03-2783 0300 Areca Capital Sdn Bhd (740840-D) Tel: 03-7956 3111 Our IUTA may not carry the complete set of our Funds. Investments made via our IUTA may be subject to different terms and conditions. IMPORTANT NOTICES Beware Of Phishing Scams We wish to remind all our clients to be alert of any e-mail or SMS that requires you to provide your personal information or to log in to Pacific Mutual’s website through an e-mail link. Please ensure that the website you are accessing contains the correct address as below: https://www.pacificmutual.com.my/ If in doubt or if you wish to clarify, please contact Pacific Mutual at 03-7712 3000 / 3197. Update Of Particulars Investors are advised to provide updated personal details to Pacific Mutual on a timely basis. You may update your details via our E-Service at www.pacificmutual.com.my or call 03-7712 3197 | e-mail customercare@pacificmutual.com.my Certificates Of Unitholdings Please be informed that notwithstanding any certificates issued to any unitholder on the holdings of units in the Pacific Dana Aman, the final and conclusive proof of ownership and details to the units of the Fund shall be according to the Register of Unitholders as required to be kept and maintained by the Manager. The information stated on the certificate may not reflect the latest information on the holdings of units in the Fund due to subsequent transactions that were entered into between the unitholder and the Manager such as the sale of units, repurchase of units, transfer of units, and creation of additional units due to distribution of the Fund. Unitholders may refer to the Statement of Account and/or Transaction Advice Slip for details of the transactions made with the Manager.